Japan’s low-interest rate environment and its popularity as a tourist destination are set to boost investments in the country’s hotel segment to a record high this year.
For Hong Kong-based investors, Japanese hotels offer a solid diversification strategy amid a slowdown in the city and mainland China, as well as geopolitical risks between Beijing and the West.
Investments in Japan’s hotels are estimated to reach an all-time high of 600 billion yen (US$4.1 billion) this year, according to JLL. As of the first half, the property consultancy had already advised on 378 billion yen worth of hotel deals, a 64 per cent increase from the same period last year.
