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Crafting Exceptional Hospitality Experiences

Interview - May 28, 2025

Hotel Management Japan operates hotels across Japan, including Hilton, Shraton, and its own Oriental Hotels & Resorts, delivering unique stays that blend local charm with global standards.

JUNICHI ARAKI, COO & REPRESENTATIVE DIRECTOR OF HOTEL MANAGEMENT JAPAN CO., LTD.
JUNICHI ARAKI | COO & REPRESENTATIVE DIRECTOR OF HOTEL MANAGEMENT JAPAN CO., LTD.

Whether it was 150 years ago or today, one thing remains constant: Japan’s ability to captivate travelers from around the world with its rich culture, deep history, and diverse landscapes. Today, Japan ranks first on the World Economic Forum’s tourism index. Most notably, Japan welcomed a record-breaking +36 million tourists in 2024. As a leading hospitality company, what do you think makes Japan such a compelling tourist destination?

One of the most fundamental reasons is Japan’s natural environment—our mountains, rivers, clean water, and four distinct seasons. We offer seasonal attractions, such as snow in the winter and regional foods that change throughout the year. As a result, people live in every corner of Japan today, and unique attractions have been cultivated. Japan offers an incredibly wide range of places to explore. Even in colder regions like Hokkaido, people live comfortably and enjoy all that the region has to offer.

Japan has developed many unique cultures over its long history of 2,685 years since its founding—especially in our food. That lasting heritage continues to shape attraction of present-day Japan.

In Ginza, Tokyo, there are renowned sushi restaurants that represent Japanese cuisine, and they are of course wonderful, but you can find fantastic sushi made with local ingredients which has comparable quality in places like Kanazawa for a fraction of the price. In many countries, once something becomes popular, prices skyrocket, and expansion of scale follows. But in Japan, many people prioritize customer satisfaction over profit, which I think is quite unique.

I believe that the essence of travel lies in experiencing different cultures. I want guests to enjoy not only luxury items like wagyu beef but also local, affordable cuisine. Such experiences are often the ones that leave a lasting impression. Personally, when I travel for business, I love finding places where I can enjoy local sake alongside good, affordable meals—especially when they’re run by passionate owners.

 

Areas like Kanto and Kansai naturally attract tourism, but regional destinations have become an important part of Japan’s tourism revitalization strategy. Hotel Management Japan operates hotels in places like Hiroshima, Kagoshima, and Hakone. How important is it for companies like yours to support regional revitalization through your hotels?

I used to be a general manager at several hotels, and one of the challenges I faced was the administrative structure that drives tourism in each region. I felt that, while there is a need to promote multiple regions for foreign tourists staying in Japan for extended periods, there is insufficient coordination across broader areas by the respective departments of local governments. In response to the demand for visiting not only Osaka but also Nara and Kyoto, I believe a more regionally coordinated organization is necessary. Additionally, there seems to be a high turnover among the tourism department staff in local governments, which makes it difficult to maintain continuous efforts.

Golf, for example, is a major attraction in Japan. With over 2,000 courses, Japan is the second-largest golf country in the world, and there are many fantastic golf courses that Japan can proudly boast about to the world. However, many foreigners are unaware of this. While many local governments focus on attracting foreign visitors to traditional cultural events, I believe it would be more effective to start with experiences they’re already interested in, like golf or other outdoor activities, and introduce cultural elements from there.

By promoting golf, tourism, and nightlife together, we can expand the potential for attracting visitors. What’s necessary is to go beyond the boundaries of individual towns, cities, and prefectures and capture the experiential value on a broader scale. To achieve this, hotels must play a connecting role, allowing local governments and community organizations to collaborate and promote their unique attractions as one.

 

One of the things your company does well is collaborating with regional partners to create unique guest experiences, such as the Okinawa Yambaru no Mori tourism project. Can you tell us more about your initiatives and any others you’d recommend to our readers?

The Yambaru forest is an incredible area, but tourists can’t visit on their own—they need certified guides, and unfortunately, the number of certified guides and multilingual guides is very limited.

I believe that by leveraging the role of hotels in connecting with local communities, we can contribute to solving this issue. We plan to hire university students as staff who can serve as guides during their summer or spring breaks. Cooperation from local governments is essential for obtaining the necessary qualifications, but after undergoing a few days of training, these students will earn their guide certifications and work as qualified hotel staff during peak periods such as Golden Week and summer vacations. This will help alleviate the guide shortage, while hotels will gain access to much-needed labour, and the students will be able to contribute to the local tourism development by utilizing their English skills. By promoting tourism resources as experiential value, hotels can help lead to sustainable tourism development in the region. In other words, customers, hotels, regions, and workers all benefit, creating a win-win relationship that contributes to tourism growth.

Yambaru is also facing an ecological issue with invasive plant species threatening the native forest. With more education and awareness, we could increase the number of people who care about this issue and want to help protect the environment.

In the hotel lobby, we have installed an atrium that recreates the ecosystem of the Yanbaru Forest. Last year, we even created a capsule toy collection featuring animals from the Yambaru area, with educational details about each one. It was a hit and helped raise awareness about the region. This capsule toy was our hotel’s original product, and it shows how local engagement can give our hotels a meaningful role in the community.


Oriental Hote Okinawa Resort & Spa in Yambaru no Mori


The shortage of guides highlights a broader issue in Japan’s hospitality industry: labor shortages. With your growing network of hotels in regional areas, how are you addressing these HR challenges?

In the short term, we’re considering the use of foreign workers and implement digital transformation (DX) tools to improve operational efficiency. However, the root problem is that the hospitality sector is not perceived as an attractive industry to work in.

One reason for this is that hotels often have different owners, managers, and operators. Without a shared vision among all three parties, staff members are struggling to find a sense of purpose in their work, and it has become difficult to have a vision for the future within the organization, which I believe is contributing to the high turnover rate.

Every industry needs to be attractive to secure a stable workforce. Hotels don’t just serve guests; they are the ones that shapes its presence under a consistent philosophy while engaging with the entire region. We want our hotels to become tourism hubs, connecting local knowledge, partners, and guests to create value. One of my dreams is for our hotel staff to become leaders of regional tourism. If hotels, restaurants, and leisure activity providers collaborate, we can increase revenues, raise wages, and pass down the region's unique and high-quality tourism content as a legacy for future generations. Japan's tourism sector should be able to thrive sustainably.

We also believe foreign talent is crucial. We want to create a more inclusive and attractive working environment. Japan can no longer operate in isolation, and we need to grow not only as a country welcoming foreign tourists but also as one that welcomes foreign workers.

 

Hotel Management Japan operates both its own brands—such as Oriental Hotel and Hotel Oriental Express—and licensed properties with brands like Hilton and Sheraton. What’s the advantage of this multi-brand strategy?

We choose different brands based on the location and target demographic. In some cases, own brand is more effective; in others, a global brand works better. For example, when operating a hotel aiming to attract foreign tourists to lesser-known regions of Japan, a global brand would function more effectively. In such cases, the hotel will use a global brand, and the actual operations will be managed by Hotel Management Japan. This allows us to maintain the connections we have built with the region while implementing flexible operations in collaboration with the local community.

Thanks to the experienced staff who have worked with multiple brands, we can manage and operate under a consistent philosophy, even though the brand may appear different to guests. We can effectively leverage the region's characteristics and adapt to the local needs.

 

Recently, 'Hilton Fukuoka Sea Hawk' has joined the group, and in April 2025, the opening of 'Hotel Oriental Express Kagoshima Tenmonkan' was completed. Why did you choose cities like Fukuoka, and Kagoshima for your hotel openings?

Some of Japan’s most attractive cities are still relatively unknown to foreign travellers, and that’s where we see the most potential.

Foreign visitors tend to stay longer at hotels compared to Japanese travellers, who usually only stay over the weekend. By meeting the needs of foreign tourists, the hotel's occupancy will stabilize in a balanced way, revenue efficiency will improve, and this will lead to investment in enhancing service quality. For example, Fukuoka is already a very popular city among foreign tourists, but nearby places like Kumamoto and Kagoshima are still full of hidden gems. Kagoshima still retains its magnificent natural landscapes such as the active volcano Sakurajima, and its unique food culture. I see great potential in the Kyushu region.

Hilton Fukuoka Sea Hawk is in one of Japan’s leading gateway cities, with excellent access from major Asian cities such as Tokyo, Osaka, Seoul, Shanghai, and Taipei. With over 1,000 guest rooms, one of Japan's largest banquet halls, a pool, fitness centre, and five restaurants, this facility has high potential and can flexibly meet the diverse needs of large groups and clients from both domestic and international markets. It also serves as a gateway to various parts of Kyushu, including Kagoshima where our new Hotel Oriental Express is set to open.

 

What’s the in-house experience like at an Oriental Hotel?

Every Oriental Hotel is different—but what unites them is their shared commitment to let customers experience the unique charm of each region. Our teams carefully select what makes their region unique and use that as the foundation for guest experiences. As an example, we offer experiences such as matcha tea ceremonies and soba-making in Fukuoka, hiking on Mount Rokko and sake brewery tours in Kobe. Even small services—if thoughtfully chosen—can offer rare and memorable experiences for travellers. That’s what we aim for.

 

Let’s say I’m visiting Japan for the first time. Which hotel from your portfolio would you recommend I stay at for a few nights?

I personally love Kobe. Kobe is a city steeped in Western culture, which may seem less traditionally Japanese to foreign visitors. However, since the opening of Kobe port in 1868, it has served as a gateway for international exchange, evolving Western culture with a unique Japanese twist over more than 150 years. Kobe's food, fashion, and experiences represent a fascinating and distinctly Japanese culture that has evolved in its own way. The city's many fantastic establishments serving Japanese-style Western dishes, such as curry and tonkatsu, are a direct result of this influence. At one of our flagship hotels, Kobe Meriken Park Oriental Hotel, guests can enjoy a steak made from Kobe beef, one of Japan's most special varieties of wagyu. The hotel also boasts a fantastic bar on the top floor, offering a breathtaking view of Kobe's night skyline. Additionally, near the hotel, you'll find a tonkatsu restaurant that I personally believe serves the best in Japan. Like any city in Japan, Kobe is brimming with attractions that will satisfy any guest.


Kobe Meriken Park Oriental Hotel


2025 marks the 20th anniversary of your company. If we meet again for another interview in 2035, what would you like to have achieved by then?

While this is Hotel Management Japan’s 20th anniversary, the real transformation began six years ago when we established our current vision and structure as a chain operator. Looking ahead, our goal is to manage and operate a diverse range of distinctive hotels across Japan by 2035, surpassing 50 hotels at an early stage and continuing to expand. Each hotel will become a 'destination hotel' offering unique stay experiences, and by expanding our hotel network, we aim to grow as a leader with influence, connecting regions, promoting their value together, and revitalizing the entire area. We are currently moving forward toward this vision.



For more information, please visit their website at: https://www.oriental-hotels.com/

 

 

COMPANY DATABASESee all Database >

TSUKASA PETCO CORPORATION

Manufacturing, Japan

Clean Chemical Co., Ltd.

Manufacturing, Japan

LIKE, Inc.

Education, Japan

LEADER DATABASESee all Database >

Eishi Morita

President and CEO
TSUKASA PETCO CORPORATION

Shozo Yano

President
Clean Chemical Co., Ltd.

Naoki Kashiwagi

President
Yamafuku Co., Ltd.

Wataru Shigemori

President
Kensetsu System Co., ltd.

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