Super Hotel: Redefining Hospitality with Sleep Science and Sustainability

To start, could you give us an overview of your business?

Our original brand concept was Lifestyles of Health and Sustainability (LOHAS), but we found that the idea wasn’t widely understood by the public in Japan. We’ve since reframed it as Natural, Organic, Sustainable, and Smart—a concept that better reflects our values and resonates more clearly with our guests.

For the natural aspect, by installing a special and patented MICA device within the hotel, we’ve introduced features like ionized water, available from every room tap. When guests raised concerns in the past about pillow firmness or height, we responded by offering a selection of eight pillow types with varying sizes and densities. That change has significantly improved customer satisfaction. Another example is our deep-sleep pajamas, which are expected to regulate your body's rhythm and boost your immune cells.

We also offer natural hot spring baths, with 90% of our hotels either transporting natural hot spring water or drawing from their own source. Recently, we conducted research with Akita University to scientifically verify the sleep benefits of bathing in natural hot springs. As a result, it has been confirmed that bathing in natural hot springs before sleep leads to improved sleep onset and high sleep evaluations, scientifically demonstrating the positive effects of natural hot springs on sleep.

With the aim of improving sleep quality, we have established a dedicated research center called the 'Sound Sleep Laboratory' to scientifically verify sleep in collaboration with Osaka University. Our commitment is backed by a unique ‘good sleep guarantee system.’ If a guest doesn’t sleep well, we will refund their accommodation—something we believe is a first and unique initiative in the hotel industry.

From an organic standpoint, with the exception of some locations, we offer a complimentary breakfast featuring mostly organic ingredients, as well as allergy-friendly dressings. Additionally, organic bath amenities are available for your use. Our goal is to help guests begin their day in better health. Organic toiletries are also available upon request.

On the smart front, we were the first hotel chain in Japan to implement ‘No-Key, No-Checkout’ systems. This not only enhances convenience for our guests, but also allows us to optimize staffing—freeing up our team to deliver face-to-face hospitality where it’s most valued. We call this approach omotenashi.

Sustainability is another crucial pillar of our brand, and we’ve been committed to environmentally responsible practices since the early 2000s—well before the SDGs framework emerged. Our efforts began in Minamata City, which suffered a devastating mercury poisoning incident in the 1970s. As part of its recovery, the city’s mayor called on local companies to take part in environmental initiatives. Although we were initially hesitant, we saw firsthand the positive impact our actions had on the community.

Inspired by that experience, our chairman decided to expand those environmental practices across Japan. We started by becoming ISO 14001 certified and have since promoted sustainability not only for its environmental benefits, but also for its economic advantages—such as maintaining cleaner rooms and extending the life of our facilities.

We have been driving customer-involved environmental activities as a way to invigorate both our guests and our team. These initiatives have been acknowledged and we were honored to be the first hotel recognized as an Eco First Company by Japan’s Ministry of the Environment in 2011, and we are currently sole hotel with Eco First certification.

We also promote the idea of ecohiiki initiative, a play on the word for favoritism that incorporates eco, or eco-consciousness. For example, guests who bring their own toothbrush instead of using our disposable plastic ones receive sweets as a reward. We also encourage multi-night guests to voluntarily skip daily room cleaning in exchange for our original mineral water bottle containing silica—a practice that reduces water consumption, as cleaning a room requires roughly 21 liters of water.

Initially, our carbon offset program was implemented only to guests who booked through our website, but since October last year, the new initiative called ‘CO2 Zero Stay’ now applies to all guests. Also, all electricity used in our hotels is sourced from renewable energy. While the Japanese government has set a carbon neutrality target for 2050, we are 26 years ahead in realizing our goal of zero CO2 emissions. Since 2010, our initiatives have offset 120,000 tons of CO2.

As a service company, we can’t manufacture our own carbon-reducing technologies, but we do aim to raise awareness among our guests. Our hope is that by encouraging ecological behavior during their stay, they’ll be inspired to adopt similar habits in their daily lives.

Whereas the traditional 20th-century hotel model emphasized material luxury and entertainment, our vision is to build a 21st-century hotel—one that minimizes environmental impact and requires fewer resources.

Of course, our customers remain at the center of everything we do. But we also view nurturing human resources as part of our mission. We provide training designed to enhance the sensitivity and warmth of our staff. Our core vision is to develop individuals who embrace autonomy and emotional intelligence, and who are inspired to appreciate their colleagues, customers, and loved ones. Our corporate philosophy is central to this, and we reinforce it regularly in morning meetings and training sessions.

Our operating structure is built around what we call ‘the service profit chain.’ When our team feels motivated, highly satisfied, and works with enthusiasm and vitality, we naturally enhance customer satisfaction—which in turn drives higher revenue and profitability.

How have these efforts been received by the market, and which markets are you currently operating in?

I’d say the response has been strong, as our sales and profits have shown steady growth—aside from a temporary dip during the COVID period. Currently, we operate 173 locations across Japan, along with one overseas location. While we’ve only just begun to expand internationally, our focus moving forward is on the ASEAN region, where both population growth and GDP trends present strong opportunities for future development.

According to JD Power’s customer satisfaction survey, we’ve held the number one position for ten consecutive years. In addition, we’ve received awards for the past two years from JCSI, Japan’s equivalent of JD Power. Our chairman—who is also my father—has been featured in Entrepreneur Magazine, and I was interviewed in Forbes Japan last September.

We place a high value on our customers and loyal fans. Last year, we launched a series of fan meetings, which have quickly become a key part of our engagement strategy. So far, we’ve received more than 2,000 applications, and for each session, we randomly select 20 participants. Some attendees travel from as far as Hokkaido and cover their own transportation costs to join us in Tokyo or Osaka. These meetings have become an important way for us to hear directly from our customers—gathering feedback, improvement ideas, and fresh perspectives on how we run our hotels. The most recent session had a particularly positive impact, and we plan to continue these events as a regular part of our customer engagement efforts.

Could you tell us more about your relationship with the markets you operate in?

In January 2024, a major earthquake struck northern Japan, and we spent time reflecting on how we could best support the affected communities. We considered options like sending foodstuffs such as rice and curry, or making a financial contribution, but ultimately decided to offer free accommodation to students from the Ishikawa and Toyama prefectures who were traveling nationwide to take university or high school entrance exams. This initiative received an overwhelmingly positive response from both the media and the public. We were featured by 111 outlets, including the Nikkei and NHK, and many customers reached out to express their appreciation—some even said it turned them into loyal fans of the brand.

We also place a strong emphasis on contributing to regional revitalization. One example is our hotel in Gotsu City, Shimane Prefecture, located near the local train station. The population in the area has been in decline, and the chamber of commerce, representing the citizens, established a private company, ‘Gotsu Future Development’, and the representative who initiated the hotel development project has personally visited our headquarters more than five times to request that we open a Super Hotel there. While we had concerns—given that Gotsu isn’t a major tourist destination and the business case wasn’t immediately obvious—the citizen’s determination and the community’s support made an impression. He was able to gather over JPY 200 million in funding from local residents demonstrating just how much they wanted us there.

At our hotels, we’ve made a point of employing staff who were raised in the region. They’re deeply knowledgeable about the area—from dining spots to historic sites like castles, temples, and shrines—and are easily identified by a special badge that lets guests know who to ask for local recommendations. This personal connection helps create a memorable experience for guests and fosters a stronger bond with the local community.

Super Hotel’s broader vision is to make meaningful contributions to regions across Japan, many of which are grappling with population decline. By drawing visitors to our hotels, we hope to stimulate local economies and help revitalize these areas. During the COVID-19 pandemic, when restaurants and hotels suffered heavily from travel restrictions, we introduced a meal coupon package to support nearby dining establishments. I remember visiting one of our hotels and speaking with a local restaurant owner who had come to thank us personally. He said the coupon program helped boost customer flow to local eateries and made a real difference in sustaining his business. That moment underscored for me the kind of positive impact we can have.

It also inspired us to go a step further by working with local communities to help develop new industries. For example, we’ve started incorporating locally produced items—like wooden products—into our hotels, further connecting our operations to regional craftsmanship and culture.

You mentioned Japan’s declining population and its effect on regional communities. It’s also contributing to a growing labor shortage. How is your company addressing this challenge?

It’s true that Japan’s declining population has led to a labor shortage across the hospitality industry. We were early in addressing this challenge by welcoming a foreign workforce. Years ago, we began employing international staff, particularly in our cleaning group company. Today, 51.4% of our workforce is non-Japanese, representing 29 different nationalities.

We’re also deeply committed to ensuring high levels of staff satisfaction, with a strong focus on promoting work-life balance. This is especially important given that 46.4% of our employees are women. In 2016, we received official recognition from the Japanese government for our efforts to promote female participation in the workforce. We also have a dedicated female staff leader who plays a key role in creating a more inclusive and comfortable working environment for all women at the company.

Beyond workplace policies, we aim to cultivate a deeper sense of connection to nature and sustainability among our team. I’ve observed that many people living in urban areas have limited exposure to nature. I once witnessed a young child in a subway car screaming at the sight of a bug—something that would have been unthinkable when I was growing up, when catching bugs and playing outdoors was the norm.

To address this, we organize ‘eco-tours’ for our new employees every year, giving them a chance to reconnect with nature and better understand the importance of sustainability. These experiences are part of our broader effort to pass on environmental values to the next generation and embed them into our corporate culture.

You mentioned having one hotel overseas—in Myanmar—and that your international strategy is focused on Southeast Asia, a region experiencing strong growth. I understand you're planning to expand through a franchise model. Could you tell us more about how that model works and which countries you're currently targeting?

We actually had a negative experience with franchising overseas. At one point, we operated a franchise hotel in Thailand, but it proved difficult to align with the local franchisee. Their focus was purely on profitability, whereas our philosophy is centered on creating a virtuous cycle—where staff satisfaction leads to customer satisfaction, which in turn drives revenue and profit. Because of this misalignment, we decided to shift away from franchising.

Now, we’re operating our own hotel in Myanmar and are currently constructing another in Vietnam targeting a spring opening next year. Our strategy moving forward is to directly manage our international properties.

What we’re aiming to build is a positive cycle of personnel exchange across a growing network of hotels, particularly in the ASEAN region, where both population and GDP are on the rise. For example, in the Philippines, the average age is just 28, and the population exceeds 100 million. In contrast, Japan's average age is over 40, and the population is shrinking—leading to a labor shortage. Our plan is to train staff locally in our overseas hotels, then bring them to Japan to gain firsthand experience with our operations. Eventually, they may return to their home countries and either continue working for Super Hotel or start their own businesses, carrying with them the Super Hotel spirit and training.

So instead of targeting developed markets like Singapore, our focus is on emerging economies such as Indonesia, the Philippines, and other high-growth areas in the region.

In the tourism industry, brand recognition is critical, and many hotels are leveraging social media, working with influencers in target markets, or partnering with travel agencies to build visibility. Are you currently exploring those types of partnerships—or other collaborations—to support your expansion into these countries?

For our hotel operations, if we can find a partner who truly shares our values, that would be the ideal scenario for establishing a joint venture in local markets. However, given our past experience in Thailand, we know how challenging it can be to find the right partner. As a result, our current strategy is to focus on managing operations ourselves to ensure our philosophy and standards are fully maintained.

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For our overseas promotion efforts, we have a dedicated team member leading outreach to influencers in order to maximize our social media exposure. We launched English official Facebook and Instagram targeting overseas audiences about a year and a half ago, so far, we’ve collaborated with approx. 100 overseas influencers including Korea, China, Hong Kong, and Taiwan. One of our most successful campaigns was for our Fujikawaguchiko branch hotel location, which offers stunning views of Mount Fuji directly from the guest rooms. Footage shared by influencers from that property garnered over two million views, generating significant buzz and visibility for the brand.

Japan has seen a record surge in tourism in recent years, with 37 million visitors last year and an estimated 40 million expected this year. The government's long-term goal is 60 million. Among these visitors, there’s a growing number of families and groups—segments that are often underserved in Japan, as they tend to seek larger accommodation spaces. This is something you're addressing through your WellStay brand concept. Could you tell us more about that?

The WellStay brand is distinct from Super Hotel and was created as part of our effort to address social challenges such as Japan’s labor shortage and the limited availability of group accommodations. WellStay offers a more self-service style of hospitality, catering to backpackers and group travelers looking for affordable lodging options.

Operations are streamlined and managed by a small, well-trained team responsible for reception, cleaning, and overall hotel functions. In fact, WellStay is operated by Super Hotel Clean, our group company, with the primary goal of developing human resources in cleaning while also equipping them with front desk capabilities.

Our long-term vision for WellStay is to create a hotel model that doesn’t require staff to be onsite at all times. Currently, Japanese regulations still require someone to be present at the reception desk, which limits our ability to fully realize this concept—but we’re expecting about reach that goal in the near future.

Many hospitality companies struggled during the COVID-19 pandemic, yet your company has not only recovered but achieved record revenues—JPY 40 billion in 2023 and JPY 48 billion last year—with an impressive occupancy rate of 85%. What do you see as the key factors behind this strong performance?

Before COVID, we were performing extremely well, but in some ways, that success was masking areas where improvements were needed. To use a metaphor, it was like a river　on the surface, everything looked fine, but underneath, there was debris we couldn’t see. The pandemic, while undoubtedly a major challenge, also gave us the opportunity to identify those issues and focus on making meaningful improvements—especially around cost efficiency.

Hotel operations typically involve five major cost areas: cleaning, linens, breakfast, utilities, and OTA commissions. During the pandemic, we took a hard look at each of these and implemented targeted cost reductions.

At the same time, it became crucial to attract new types of customers. With business travel sharply declining due to the rise of remote work, we shifted our focus to new segments—families, female group travelers, and local guests. For example, we introduced rooms designed specifically for women, featuring luxurious touches like high-end showerheads and premium hair care amenities.

We also noticed a trend during COVID where female workers began using business hotels as private gathering spots. With restaurants and bars closed, many brought drinks, snacks, and used hotel rooms as a space to unwind and connect. We leaned into that behavior and started catering to those groups, creating a welcoming environment where they could relax and enjoy themselves.

Until now we were positioned as a business hotel, but during COVID-19, we made a deliberate shift to a more lifestyle-oriented brand. One example of this is how we repurposed our breakfast spaces—which previously sat unused during the day—into inviting lounges called ‘Welcome Bar’ where guests can enjoy complimentary local sake, cocktails, soft drinks, and conversation.

These initiatives have helped us not only recover but reach record levels of sales and occupancy. By improving operations and broadening our appeal, we’ve emerged from the pandemic stronger than before.

Looking ahead, have you set a personal goal or ambition that you hope to achieve during your time as president of the company?

My vision is to transform Super Hotel from simply a hospitality brand into a platform for nurturing human resources—a global hub where people can grow, connect, and exchange ideas. The goal is to strengthen not only the economy but also the human and cultural ties between Japan and the ASEAN region. We want Super Hotel to serve as a bridge that brings people together globally.

To support this vision, we’ve launched several new programs designed to help our team members realize their ambitions. One example is our ‘venture management system’, where individuals train in hotel management for three to four years as a manager and then have the opportunity to launch their own business. Last year, among the graduate of the program, there was even someone who was so impressed by the Super Hotel brand that he became the first franchise owner of a hotel in Kumamoto.

Running a hotel requires a wide range of competencies—from marketing and customer service to HR management, operations, and cost control—so it provides an ideal environment for aspiring entrepreneurs to gain real-world experience. Through this system, we hope to empower more people with the skills and confidence to start successful ventures of their own.

For more information, please visit their website at: https://www.superhoteljapan.com/en/company.html

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To read more about Super Hotel, check out this article about them