By Taihei Ishikawa

Yomiuri Shimbun Staff Writer

Japan's Daito Trust Construction Co. group will enter the hotel management business, planning to open 10 "apartment-style" hotels across Japan by fiscal 2028, the group announced Monday.

Featuring guest rooms with home appliances and kitchen spaces, these hotels will be made well-suited for medium- to long-term stays. Targeting the record-high number of international visitors as well as domestic family tourists, the Daito group's move marks another instance of real estate companies and those in the hotel sector launching this kind of business model in Japan.

Aiming for significant increase in sales revenue

The Daito group plans to open a total of three hotels in this style in the Asakusa district of Tokyo and in Fukuoka in 2027, after which operations will be expanded to primarily government-designated cities in Hokkaido and the Kinki and Chugoku regions.

With rooms measuring about 40 to 45 square meters — larger than typical business hotels — they will come equipped with appliances such as microwaves. Rates are expected to range from 60,000 to 70,000 yen per room per night.

In April, the group signed a partnership agreement with Unito, a Tokyo-based company engaged in hotel development and operations. Initially, the Daito group will outsource operations to Unito, with the goal of transitioning to in-house management in the future. While the Daito group has previously developed hotels both domestically and internationally, this marks the first time it takes on the role of operator. In addition to its core real estate leasing business, it intends to make real estate development business, including hotels, a new pillar of revenue, aiming to increase sales in this sector to 500 billion yen by fiscal 2030, or 3.4 times the level of fiscal 2025.

Washing machine-equipped

The Orix Corp. group opened its first property under its new "apartment-style" hotel brand "Cross Suites" in Asakusa on Friday.

There are 11 room types in total, ranging in size from about 25 to 63 square meters. The suites can accommodate up to six guests and feature not only appliances and tableware but also a washing machine.

"We want to explore flexible approaches, including not only new construction but also renovations and repurposing existing rental housing or office spaces," said Takaaki Nitanai, president of Orix Hotel Management Corp.

In April, Mitsubishi Estate Co. made a move of its own by renovating an existing hotel in Tokyo's Tsukiji district.

By providing amenities that allow families and other groups to relax comfortably, "apartment-style" hotels are expected to capture a different demand than business hotels, which are designed for short-term stays by small groups.

Additionally, in providing self-catering facilities, the hotels can reduce the cost of operating restaurants and providing room service. Since guests typically stay for multiple nights, the frequency of cleaning and linen changes can be minimized, allowing for more efficient operations even amid labor shortages.

Long-term stays expected

The number of foreign visitors to Japan surpassed 40 million in 2025, setting a new record for the second consecutive year — and further rises are expected. The average length of stay was 9.5 days, with visitors from Europe and North America tending to stay even longer.

"Since this type of accommodation also suits domestic tourists including families, we expect a growth in this type of model," said Terunobu Kuribayashi, lead consultant at JTB Tourism Research & Consulting Co. Noting that guests are likely to explore surrounding areas, Kuribayashi pointed out, "The key to differentiation lies in how well a property can provide services tailored to its location and the local community."

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This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.

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