June 3, 2024

Hyatt Hotels Corporation Will Open its Inaugural Hot Spring Inns in 2026

The hot spring inns, set to open in Yufu City, Oita Prefecture; Yakushimacho, Kagoshima Prefecture; and Hakonemachi, Kanagawa Prefecture, will offer a unique blend of traditional Japanese hospitality and modern luxury. The 20 billion yen fund has been allocated to meet development costs. With the yen's depreciation and the influx of inbound tourists, these inns will cater to affluent local and foreign visitors.

The onsen ryokan brand, “ATONA,” stands as a testament to the fruitful collaboration between Hyatt and Kiraku, a thriving startup based in Kyoto, Japan. Both entities hold an equal 50% stake in this joint venture, ensuring a harmonious and mutually beneficial operation.

The room rates at the ryokan will vary based on demand and the season, but they are anticipated to begin at around 100,000 yen per room per night. Ryokans typically include dinner and breakfast in the room price. ATONA expects guests to stay for three to four nights and have the option to dine at restaurants in the hot spring resort separately from their overnight stay.

The average number of guest rooms per hotel is projected to range between 30 and 50. In addition to the spa, the hotel boasts a bar and offers a rich array of cultural experiences such as nature and history tours. The program is thoughtfully designed to include agricultural experiences, cooking with the harvest, and cycling tours. This comprehensive offering anticipates a significant number of returning visitors to Japan and a surge in foreign visitors seeking authentic local experiences.

Compared to other countries, Japan has fewer luxury hotels, leaving room for expansion in the foreign hotel business, especially in rural areas. Other foreign investors are also opening more stores. IHG Hotels & Resorts from the UK plans to double the number of hotels it operates in Japan to around 100 facilities over the next four years. The company intends to open a "Hotel Indigo" brand restaurant in Nagasaki by the end of the year and plans to open its first restaurant in Gunma Prefecture in 2025.