Daiwa House Industry plans to enter Japan’s relatively untapped hotel-condo market by 2026, according to the Nikkei Shimbun newspaper.
The domestic developer is already selecting luxury hotel project sites in resort areas like Hokkaido, including Niseko and Sapporo, as well as an urban location near Kokusai-dori Shopping Street in Naha City, Okinawa. Existing hotels that have hot spring facilities and that can be converted into condos are also being considered.
When the owners are not using their rooms, they can be rented out to inbound guests, providing a source of income. It is expected that the rooms can be rented out for between 30,000 ~ 40,000 Yen a night to guests. Management and room cleaning are left to the hotel operator, providing less hassle than a holiday home or condo-only resort apartment. The projects are expected to appeal to Japan’s wealthy looking for wider investment opportunities and a way to cash in on the rapidly recovering tourism market.
Daiwa may also leverage its network to have condo-hotel tie-ups with luxury international branded hotels. The developer has an operating agreement to open the Double Tree by Hilton Osaka Castle in its Osaka Otemae 1 Chome Project in 2024, and the Double Tree by Hilton Kyoto Station also in early 2024.
Source: The Nikkei Shimbun, December 10, 2023.
