November 19, 2024
Mori Trust Aims to Draw Foreign-Capital Hotels to Akasaka, Tokyo
On November 18, Mori Trust revealed plans to bring the international hotel brand 1Hotels to Japan for the first time. 1Hotels will be part of the extensive redevelopment project Tokyo World Gate Akasaka in Minato-ku, Tokyo, which is set for completion in 2025. With a surge in redevelopment across Tokyo, new luxury brand hotels are continuously emerging. Mori Trust aims to transform these luxury hotels into reliable revenue streams.
1Hotels is managed by SH Hotels & Resorts, a US-based company founded by Barry Sternlicht, who also established the luxury hotel chain W Hotels. This brand currently operates 14 hotels, primarily in Europe and the U.S. Its unique selling proposition is that it offers a blend of luxury—many rooms cost over 100,000 yen per night—and environmental sustainability.
The hotel attracts affluent international guests with its sustainability efforts, including using recycled wood and natural stone in its interiors and filtering rainwater for drinking purposes. SH Hotels chief executive Lau Le Lyrial stated, "It has been designed to provide an oasis guided by nature. "
Tokyo is witnessing the rapid construction of massive facilities. A notable feature is the inauguration of a foreign luxury hotel that claims to be the "first in Japan." Opened in 2023, Tokyo Midtown Yaesu (Chuo-ku, Tokyo) houses the Bulgari Hotel Tokyo, where room rates exceed 4 million yen per night. Additionally, Azabudai Hills (Minato-ku, Tokyo), Japan's tallest skyscraper, is the location of Janu Tokyo's sister brand of the luxury hotel Aman.
Mori Trust has lured luxury hotels like Conrad and Shangri-La to Japan. By the fiscal year ending March 2024, the hotel segment will represent 25% of the company’s operating revenue, which mirrors the group’s sales—the highest in the developer industry. The government aims to raise this ratio to 30% by fiscal year 2030, with significant profit expectations for luxury hotels in urban locations as well.
