Tokyo Room Count Climbing Amid High Demand
<B>Tokyo Room Count Climbing Amid High Demand</B>
By Maria Lenhart
Tokyo's hotel room inventory is skyrocketing, with nine new hotels having opened since January and one dozen new properties expected to open between 2001 and 2004. At the same time, some existing luxury properties are making substantial investments in renovations and new business travel amenities.
While all this new supply may create a more competitive climate in Tokyo, the city currently is enjoying some of the highest hotel occupancies and average daily room rates in Asia, according to figures from PricewaterhouseCoopers. Hotel occupancies averaged 80 percent in Tokyo during the first six months of 2000, while average room rates stood at US$165.
This year's new crop of hotels include the 1,006-room Tokyo Dome Hotel (BTN, March 3), 333-room Dai-Ichi Hotel Ryoguku, 408-room Shibuya Excel Hotel Tokyu and the 281-room Hotel New Green Okachi-cho.
While most hotels under development are three-star properties aimed at the Asian market, a notable exception is the 430-room Grand Hyatt Tokyo, which is scheduled to open in early 2003 in the Roppongi area, a commercial district close to many embassies. The luxury property will be part of the Roppongi Hills Complex, the largest mixed-use development in Japan. The complex will include an office tower, retail shops, gardens, a TV studio, residential housing and direct access to the Roppongi Train Station.
According to Noby Yanaga, director of marketing for Japan for Hyatt International, the hotel's location will make it a strong choice for international business travelers, who are expected to comprise about 80 percent of overall business on weekdays. "Roppongi is in the heart of Tokyo and, with the extension of two subway lines that will be completed before the hotel opens, will be even more convenient," he said, adding that a number of international firms are expected to rent space in the complex's office tower.
The second hotel under the Grand Hyatt flag in Japan, the hotel will feature such amenities as a full-service business center and a fitness center with an indoor pool, gymnasium, beauty salon, massage rooms, Jacuzzi, saunas and steam rooms. Meeting space will include a ballroom seating up to 750 people for a banquet, 10 smaller meeting rooms and a Japanese tearoom available for private events.
Accommodations will include a Regency Club floor with special access to an outdoor garden. Specialty suites will include a Presidential Suite with a private swimming pool, two Japanese-style Tatami Suites and 10 junior suites. Food and beverage outlets will include a grill restaurant, seafood restaurant, sushi bar and a restaurant serving Japanese Kaiseki-style cuisine.
Also under development in Tokyo is Dai-Ichi Hotels' 500-room Tokyo Shiodome, which is set for a 2003 opening, and Tokyu Hotel's 414-room Tokyo Stay Yotsuya, which is scheduled to open next spring.
Other upcoming properties include the 252-room Tokyo Inn Haneda Ootorii, opening at Haneda Airport next year, and the 200-room Hotel Shibuya opening in the fall of 2001.
Meanwhile, two luxury boutique hotels in Tokyo are making improvements designed for the high-end travel market. The 71-room Hotel Sofitel Tokyo is winding up a property-wide renovation in September that includes a French-style interior design, new guest room technology, a high-tech boardroom and a new fitness center.
The hotel, which is located in Tokyo's Ueno business district, has added new technological features to all of its guest rooms, including modem jacks located near the writing desks and Maginet Internet TV. Designed for multimedia presentations and online conferences, the Sofitel Tokyo's new boardroom includes a color projector, wide-angle camera plugs for additional cameras, wireless microphones and videotaping facilities.
Dallas-based Rosewood Hotels & Resorts, which takes over the management of the 72-room Seiyo Ginza in September, is planning a renovation for the hotel, including upgrading and reconfiguring all guest rooms. No details have yet been announced.