Atami hotels sold to US fund

The landmark Hotel New Akao in Atami has been sold to Shirakami, an affiliated company of Fortress Investment Group. The sale is for Hotel Acao Annex (former Hotel New Akao) and Hotel Acao (former Royal Wing) and approximately 7% of Acao Spa & Resort’s landholdings.

The 20-story Hotel New Akao opened in 1973, built into the cliffside just below Atami Castle.  It featured a lobby on the 17th floor, dining hall on the 2nd floor, and karaoke, dance hall, onsen, and ocean pool on the 1st floor. The Royal Wing hotel was built nearby in 1994. Together, they have 350 rooms.

Under the new operations by Mystays Hotel Management, the 100-room Royal Wing building will be operating from mid-December, and the neighboring waterfront Hotel New Acao is planned to reopen in the summer of 2023.

At one time the main hotel guests were corporate group travelers, but the demographic later shifted to families and individual guests. During the pandemic, occupancy rates in Hotel New Akao dropped to 30%. In 2021, it only opened during the peak holiday periods before closing permanently that November due to the tourism downturn and the aging building. 

Acao owns over 650,000 sqm of cliffside oceanfront land. Although this marks the company’s temporary withdrawal from the hotel industry, it will continue to operate in the resort space with Acao Forest (former Acao Herb & Rose Garden), Acao Rose Square, and Acao Beach pool and camping facilities. The company is also planning to develop a new concept hotel in 2026 with an announcement of the new project to be made next month. 

Sources:

The Yomiuri Shimbun, November 22, 2022.

Fashion Snap, November 21, 2022.

Impress Watch, November 22, 2022.

 700 total views,  2 views today