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The changing rules of luxury
that make up much of the country ’ s fragmented market . Fujita Kanko could start offering historic house lodgings to more directly target that demand , Segawa says .
Hoshino Resorts , a 102-year-old family company , operates 34 properties in Japan and three brands , including lux Hoshinoya and traditional Kai . “ By bringing these properties together , we are able to overcome the challenges concerning cost efficiency by
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TOTAL PIPELINE Q3 (% PROJECTS YEAR OVER YEAR ) 135 projects / 25,251 rooms ( 0 % projects , -11 % rooms ) Under construction : 98 projects / 16,943 rooms ( -3 % projects , -9 % rooms ) Start in the next 12 months : 27 projects / 4,661 rooms (+ 35 % projects , + 52 % rooms ) Early planning : 10 projects / 3,647 rooms ( -29 % projects , -49 % rooms )
TOP MARKETS Tokyo : 54 projects / 12,029 rooms Kyoto-Osaka-Kobe : 13 projects / 2,947 rooms Nagoya : 9 projects / 1,987 rooms creating economies of scale ,” CEO Yoshiharu Hoshino says , while balancing local charm and modernity required by the modern traveler . A joint venture between Hoshino and Goldman Sachs in 2005 focuses on turnarounds of traditional hotels .
Hoshino says the next step is to export the ryokan to cities like New York , London and Paris . “ We aim to develop a market in which travelers choose ryokan primarily for comfort and relaxation rather than for a ‘ Japanese experience ,’” he says , in the same way that Japanese cars and cuisine are ubiquitous . “ Achieving this will be a challenge , but it is one of our major objectives .”
Still , the challenge to develop starts at home , and government support is a double-edged sword , says JLL ’ s Sawayanagi : Next year Airbnb-type rentals will be legalized , easing a room shortage but leaving future hotel growth vulnerable .
TOP FRANCHISE COMPANIES , BY PROJECT COUNT Unbranded : 50 projects / 7,589 rooms Route Inn Group Co . Ltd .: 34 projects / 4,237 rooms APA Hotel Ltd .: 12 projects / 6,718 rooms Tokoyo Inn Co . Ltd .: 7 projects / 893 rooms Dormy Inn Hotels : 4 projects / 517 rooms
TOP BRANDS , BY PROJECT COUNT Unbranded : 46 projects / 6,702 rooms Hotel Route Inn : 34 projects / 4,237 rooms APA Hotel : 12 projects / 6,718 rooms Toyoko Inn : 7 projects / 893 rooms Dormy Inn : 4 projects / 517 rooms
Source : Lodging Econometrics
The changing rules of luxury
" It has moved away from the more formal trappings to still choreographed formality , but delivered in a much warmer , friendlier demeanor , where the customer came first versus the protocol coming first . And then basic creature comforts took a higher priority to silver and to chandeliers . What ’ s just happened subsequent to that is , as the world is broadened and people have access to more , there ' s almost a rewriting of how you play out the rules … It ’ s not the scale of the room per se , it ' s the vibrancy , it ' s the personality , it ’ s the richness of the experience versus the fineness of the linen . We ’ ve always considered ourselves a deliverer of less formal luxury , but tastes today are pushing us even further , and so there ' s a little bit more whimsy , a little bit more risk … Our core demographics haven ’ t changed , but how our demographics enjoy themselves has changed and is evolving ."
— CRAig REid , CEO Of AubERgE RESORTS , On ThE EVOluTiOn Of " nEw luxuRY "
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