Just steps from Shizuoka Station, Nakajimaya Grand Hotel mixes calm city-center stays with a restaurant lineup from Japanese to Sichuan, plus roomy banquet space—making business trips feel like mini-getaways.
Thank you very much for speaking with us today. To begin, I’d like to talk about travel in Japan. For more than 150 years, Japan has continued to captivate travelers from around the world. What do you think explains this enduring appeal?
Japan’s allure has many dimensions. If we look at a few data points, we can see that even today many young people from abroad — for instance, Chinese high school and university students — come to Tokyo to study. They are drawn not only by Japan’s safety and orderliness but also by its cultural depth and lifestyle balance. At our hotels, we also see a growing number of overseas visitors, including immigrant workers who have come to Japan seeking opportunity. Many of them choose to stay with us. This blend of travelers — from students to workers — reflects Japan’s openness and the fascination it continues to inspire. From our location, surrounded by mountains and overlooking Suruga Bay with Mount Fuji in the background, the scenery is truly breathtaking. Every morning and every evening, I find myself amazed all over again. From the window of my child’s room, you can see Mount Fuji — a sight that never fails to move me. It’s something people from outside our region often find extraordinary, yet those of us who live here tend to take it for granted.
One of the great things about scenery, however, is that it can never be stolen — it’s something that belongs to everyone. That’s what makes it so special. Shizuoka, where we are based, enjoys a remarkably mild climate with four distinct seasons. It rarely snows, and although summers have become warmer in recent years — much like in Sapporo — the natural environment remains gentle. The local food culture benefits from this balance. Seafood here is exceptional — when I visit New York, people there talk about how much they love sushi, but what we can serve fresh from the sea in Shizuoka truly stands apart. Our region also produces wonderful vegetables and meats. Visitors who may not be looking for a resort experience but who seek urban and cultural discovery will find that Shizuoka, with its nearly 400-year history, offers both. Historically, Shizuoka developed alongside Kyoto and Tokyo as one of Japan’s core cities. Yet the food culture here is quite distinct. Even among Japanese people, it can be difficult to explain. Take oden, for example — our version is slightly different from that found in other parts of the country. For international readers who are curious about Japanese culture and tradition, I believe these kinds of local variations are fascinating. They reveal how deeply rooted regional identity remains across Japan.
Shizuoka Prefecture was recently rated as one of Japan’s most attractive areas to live, ranking highest among all 47 prefectures. For visitors, which locations or experiences would you personally recommend?
Shizuoka offers something in every season. For those who enjoy nature, there are excellent mountains for hiking, with trails that allow you to view Mount Fuji from different angles. You can also go to the sea — in fact, Shizuoka is one of the few places in Japan where you can enjoy both mountains and ocean so easily. There are trekking areas that take you close to Japan’s highest peaks, and from there, you can look out across the landscape and truly feel the scale of this country. It’s a place that captivates visitors, though still relatively unknown to most tourists. Many people enjoy canoeing or water sports, but surprisingly few venture to Shizuoka’s western coast. For travelers who want to explore beyond the typical destinations — the “off-the-beaten-path” experiences — Shizuoka offers endless possibilities. We’ve also seen a growing number of artists visiting and staying in our hotels, seeking inspiration from the scenery and the slower rhythm of life here. While Kyoto, Osaka, and Tokyo continue to draw heavy crowds, Shizuoka provides a more reflective and authentic experience — still rich in culture, but with space to breathe.
I’d like to move now to your company’s philosophy. The concept behind your hotels emphasizes “winning the hearts of guests.” As Nakajima Hotels enters its second century, could you tell us more about your guiding philosophy and long-term vision?
As you may have seen in our earlier presentation, our story began with a very small inn in 1916 — just a handful of rooms, perhaps four or five in total. In those early days, guests would dine separately and rarely interacted with one another. From those humble beginnings, we gradually evolved into a modern hotel. We were the only open-style hotel of our kind during the early 20th century, and today, we are proud to be one of the oldest continuously operating hotels in the region.
Over time, the role of our city — and our hotel within it — has changed significantly. In the beginning, travelers came mainly for business or transit. Now, we serve guests who come for experiences, for rest, and for connection. The hotel business is the kind of enterprise. Unlike manufacturing, we cannot move our base of operations — our service must be produced and delivered in the same place. This is a true real estate business in the original sense. We create and provide value right where we stand.
If you think about it, an iPhone can be produced in Shenzhen one year and in Chennai the next; factories can relocate. But a hotel cannot. Our relationship with place defines who we are. That is why local identity is so important. Many hotel chains offer the same service under the same brand across Japan — guests know what to expect, and that consistency has value. However, for travelers who want to discover local culture, it’s not enough. As a regional hotel group, we see our role differently. Around 90% of our employees are from the Shizuoka area. They understand the local community, the culture, and the expectations of our guests. We also want local residents to feel proud of our presence — not just travelers. That’s why we are committed to exploring and communicating the deeper charm of our city. For instance, we’ve rediscovered traditional crafts such as bamboo artistry. Japanese people love to talk about food, but regional culture is more than cuisine — it’s also history and craft.
Our hotel is located in a district called Koyamachi — historically known for koya, or hand-dyeing, a traditional craft in the Edo period. The next block is Gofukucho, which derives from gofuku, meaning kimono fabric. In the past, craftspeople worked here sewing and selling materials for kimono-making. These place names still exist today, and they connect us directly to our city’s 400-year history. Even if modern residents are not fully aware of these origins, I find it inspiring — and so do our neighbors. Such stories remind us that we are part of a living cultural continuum. In the same spirit, we make sure that the food we serve and the stories we share reflect our awareness of where we are. Every detail — from the ingredients we source to the décor — is a form of storytelling. Each month, about a hundred new guests come to our hotel, and many of them tell us they want to know more about these local traditions. That curiosity gives us energy. At the same time, I’ll be honest — preserving and communicating local culture is not easy. It requires continuous effort and creativity.
In a previous interview with Mimaru, they mentioned that their concept centers on “content travel” — designing experiences for international visitors, with 97% of their guests coming from abroad. Your hotels also attract artists and craftspeople. Do you see potential for further collaborations with local artisans or shops?
Yes, definitely. In fact, there are already places where artisans — often in their 20s or 30s — continue to create and sell their work. Many international visitors are deeply interested in these hands-on experiences. However, accessibility remains an issue; public transportation doesn’t always connect easily to these workshops.
Could you tell us more about how you introduced the all-inclusive model at Yaizu Grand Hoteland what makes it distinctive in Japan?
When we started our all-inclusive model five years ago, there were almost no other examples in Shizuoka Prefecture. The only Japanese group we could look to for inspiration runs a series of family-style ryokan (traditional inns). My father was a close friend of their president, and after the great earthquake, they began to explore the all-inclusive concept as a way to provide comfort and simplicity for guests. Many people still think all-inclusive means only “food and drinks included.” But in reality, it’s much more than that. In fact, I would say that meals and beverages make up less than half of what all-inclusive hospitality should offer.
All-inclusive experiences encompass the entire stay — from leisure activities like tennis or basketball, to rainy-day alternatives such as board games, lounges with panoramic views, and even art or reading corners. Guests can enjoy alcohol or soft drinks freely, but the key is that they feel completely at ease without constantly thinking about payment or restrictions. In the last five years, as more Japanese hotels have experimented with the model, guests have come to understand what it really means. They now recognize that all-inclusive hospitality isn’t just about unlimited consumption; it’s about freedom — the freedom to relax, explore, and connect.
At our hotels, when families check in, it’s common for the father to handle the formalities at the front desk while the rest of the family heads to our base lounge. There, they can start enjoying refreshments immediately — sparkling wine on the terrace, for instance, while admiring views of Mount Fuji and the sea. The experience begins from the moment they arrive, not after check-in is completed. Children can play, parents can unwind, and the whole family can feel at home. Tokyo families, who rarely get the chance to play basketball or tennis together, especially love that our facilities encourage multigenerational activities. Even grandparents often join in, though we make sure the environment is safe and relaxing for them as well.
How did this Yaizu Grand Hotel all-inclusive model evolve from your earlier business structure?
Our guest profile has changed dramatically over the decades. In the 1970s, the majority of our visitors were group tours — that was the golden age of domestic tourism. For about twenty years, these tours formed the backbone of our business. Even before the pandemic, around 25% of the revenue from our Yaizu Grand Hotel came from group travel. Many ryokan still rely on 70–80% of their income from such groups. But when COVID-19 struck, that market disappeared overnight. During the pandemic, it became impossible to host large groups. People couldn’t sit side-by-side on buses, and maintaining social distance was essential. Even two years later, group travel had not fully returned. We had to adapt — to design an experience that was safe for individuals and families but still warm and personal. That’s where all-inclusive hospitality offered a solution. It allowed us to reduce unnecessary contact without compromising service quality. Because guests could help themselves — self-service, as we say — the pressure on staff was lower, and the sense of safety was higher.
After the pandemic, however, we recognized something deeper: guests were longing again for genuine warmth — what we call welcome-warm hospitality. We realized that our 100 years of experience providing close, human-centered omotenashi could be harmonized with the efficiency of all-inclusive operations. Contrary to what some may think, all-inclusive does not mean distancing ourselves from guests. On the contrary, it gives us more opportunities to engage with them meaningfully. The idea is to create an environment where service is both effortless and heartfelt. Large hotel groups have also begun developing all-inclusive brands, but our approach is slightly different. For us, it’s not only about convenience or luxury — it’s about human connection within a relaxed structure. That’s the essence of our model.
I’d like to ask about your company’s overseas presence. In 2011, Nakajimaya Hotels opened four serviced apartments in Murray Hill, New York, and two family properties in Westchester — designed for Japanese expatriates and long-stay families. How did that venture come about, and what does it represent for your company?
That project actually began before my tenure. It was initiated by my father, who had a deep affection for the United States. His generation was strongly influenced by American pop culture, business practices, and films. He admired the spirit of enterprise that characterized postwar America. Interestingly, my grandfather had also spent time in the U.S., so there has always been a cross-Pacific connection in our family.
About forty years ago, when I was a child, Shizuoka was considered an earthquake-prone region. Building regulations were strict, and maintaining a hotel business here required careful financial management. My father was extremely prudent — he avoided excessive borrowing and kept the company financially healthy, even during Japan’s economic bubble.
While other ryokan borrowed heavily from banks to construct large new facilities — often at high interest rates — my father stayed conservative. When the bubble burst, many competitors suffered. We did not. That financial stability gave him room to think long-term. He also worried about the natural disaster risks in Japan and wanted to diversify our portfolio. Around that time, my sister was studying at New York University, and through her, my father met executives from a company called Redac — originally Tokyo Boeki, which later became a major real estate firm in New York. Through that relationship, he acquired our first property on Madison Avenue — a small building with about twenty units. It was an older structure, maybe 90 years old at the time. Most would have seen it as a risk, but for us, it was an opportunity.
As hoteliers, we already understood buildings — how to maintain them, repair them, and extend their life. Real estate in New York was different, of course, but our experience with structural maintenance in Japan gave us confidence. My father also appreciated that New York’s real estate regulations were transparent and fair — especially compared with many European cities, where the systems can be opaque. He saw Manhattan as stable, almost like investing in gold. Today, that portfolio has grown to around fifty units. We complete maintenance projects regularly — sometimes finishing major work in just a month — and we’ve been able to sustain those properties without taking on additional debt.
Do you have plans to expand further overseas, perhaps in Europe or elsewhere in Asia where there are large Japanese expatriate communities?
No — at least, not for now. For us, Manhattan remains unique. It’s the only place abroad where we felt the combination of opportunity and stability was right. Our family has always been cautious about risk. My father disliked anything resembling gambling, and for him, large speculative real estate plays sounded exactly like that. Yet, paradoxically, he chose to invest in Manhattan — because, in his eyes, it wasn’t a gamble. It’s an island with finite land, strong demand, and transparent governance.
Other boroughs like Brooklyn and Queens have been expanding rapidly, and areas such as the Bronx are also transforming. But Manhattan remains the symbolic heart of the city. Even neighborhoods once considered undesirable, like Hell’s Kitchen, are now thriving cultural hubs with developments like Hudson Yards. He viewed this as part of a natural urban evolution — one aligned with our philosophy of gradual, sustainable growth. We have considered other regions where Japanese communities are large — for instance, Bangkok, where more than 60,000 Japanese nationals live, or Australian cities like Sydney and Brisbane. But for now, our focus remains on deepening the quality of what we already have, not multiplying our footprint.
From an international strategy perspective, which is more important to your company: increasing inbound tourism to your hotels in Shizuoka, or enhancing the visibility of your brand in the competitive New York market?
Within our group — Nakajimaya Grand Hotel and Garden Shizuoka Hotel — inbound growth is certainly important, but it’s not something we can achieve alone. When I travel to Hong Kong or Taiwan and ask people why they haven’t yet visited Shizuoka, the answer is often simple: they just don’t know much about it. So, part of our mission is to collaborate with local government and other businesses to raise awareness. Some municipalities are already investing heavily in inbound tourism, building infrastructure and promoting international access. But overall, we still have a long way to go.
Currently, foreign guests make up only about 5% of our total visitors — a very small percentage. Yet, that small number plays an outsized role in reminding us how globally attractive our region can be. In places like Hakone or Karuizawa, the difference is striking — compared with five years ago, you now see many more international tourists. But that rapid increase has also made those destinations crowded. Some travelers are beginning to look for alternatives — places with the same beauty and comfort but without the congestion.
That’s where Shizuoka can shine. Compared with those famous resorts, our pricing is more reasonable, and our atmosphere more relaxed. Guests who discover us often tell me that what they find here — the combination of hospitality, scenery, and calm — is exactly what they were seeking. We’ve hosted American guests who have stayed for several days simply to unwind, read, and enjoy nature. That kind of slow travel experience is our strength.
Meanwhile, our New York operations face different challenges. Utility costs and insurance premiums have risen sharply — sometimes by 15% or more — which puts pressure on profitability. Yet, the properties continue to appreciate steadily, and we maintain occupancy. For Japanese companies, overseas investment can be difficult because domestic return expectations are traditionally low. But even a modest 5–10% return in New York is sustainable and strategically valuable. In the future, we might consider expanding to other U.S. cities if conditions align, but again, our principle is measured growth — never expansion for its own sake.
Returning to your question, what makes us distinctive is our blend of omotenashi (Japanese hospitality) rooted in ryokan-style warmth, combined with the efficiency of hotel-style service. Even though I respect the high level of service of other hotels, we offer a distinct sensibility. Each of our properties has its own personality. For example, Yaizu Grand Hotel functions as a showcase property, while Fujiview Lounge and Panorama Terrace reflect our newer, more inclusive resort concept. About five years ago, we introduced the all-inclusive model — a concept that, at the time, was still very rare in Shizuoka.
Recently, we’ve seen a wave of hotel development in Shizuoka City — including your Nakajima Hotel and the Garden Shizuoka Hotel. How do your properties stand out from the others in such a competitive market?
Location is certainly part of it, but our real distinction lies in how deeply we engage with the local community and culture. Our buildings themselves are modest — they may not be the tallest or the newest — but we continuously add value through thoughtful upgrades. For example, some rooms now include small kitchenettes and microwaves, making them comfortable for longer stays of three or four days. Beyond facilities, what truly differentiates us is the experience. Just yesterday, during the Moon Viewing Festival, our staff prepared dango (traditional rice dumplings) and served them with green tea to guests in the lobby. Small gestures like that convey the changing of seasons — something deeply appreciated in Japanese culture.
Other hotels may not have chefs or banquet rooms, but we do. That allows us to design menus and events that reflect local ingredients and seasonal traditions. Guests can feel the rhythm of Shizuoka’s seasons during their stay. Some travelers expect only a bed for the night, but we aim to give them something richer — a sense of place, memory, and connection. Take our breakfast, for instance. It’s an important part of our identity. We prepare omelets right in front of guests, and our buffet includes Shizuoka’s renowned seafood and produce. Breakfast is where guests begin their day, so we want it to be a moment of discovery. Compared with standard business hotels, ours offers a distinctly local flavor. We even provide custom-made city maps and recommendations that encourage visitors to explore downtown Shizuoka beyond the usual tourist spots. That’s the kind of personal, culturally rooted service that sets us apart.
Finally, if we were to interview you again five years from now, where do you hope to see your company — and your hotels — by that time?
That’s a very meaningful question. Like many industries, hospitality in Japan faces a serious labor shortage. It’s not just hotels — it’s a nationwide issue. To adapt, we’re rethinking the traditional boundaries of what a hotel can be. At the same time, we’re launching our own brand initiatives that go beyond the regional market, while continuing to nurture our local workforce. About 90% of our employees are from Shizuoka, and I want them to feel proud — proud of their work, proud of their hometown, and proud of representing a hotel group that stands for authenticity and integrity. When local people take pride in what we do, that pride radiates outward. It attracts visitors from across Japan and abroad, because authenticity cannot be faked — it’s felt.
Our ultimate goal is to be a hotel group that inspires both guests and staff — a place where tradition and modern hospitality coexist harmoniously. We also want to preserve the spirit of craftsmanship that has defined us for generations. My great-grandfather founded our first inn over a century ago, and through every era — from 1916 onward — our family has carried forward the same belief: that true hospitality begins with respect for people and place. If, five years from now, our guests still feel that warmth — that genuine omotenashi — and our employees still take pride in expressing it, then I will consider that a success.
On a lighter note, we’re also exploring more community-oriented projects, such as a new restaurant. After the pandemic, many families began spending more time locally, seeking relaxed spaces close to home. I believe we can respond to that need — offering not just accommodation but moments of connection and calm. In that sense, our vision is both global and local. We aspire to welcome the world to Shizuoka, while reminding our own neighbors that the essence of travel and hospitality begins right here.
For more information, visit their website at: https://www.sn-hotels.com/sgh/
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