Japan’s hotels struggle to keep up with surge in inbound tourism

Japan’s hotel industry continues to hit new strides as inbound tourism reaches new highs, but may be facing a supply crunch. Among the 13 publicly listed hotel operators covering 15 brands, average daily rates (ADR) for the fiscal year ending March 2025 are all up year-on-year, particularly in central Tokyo and regional cities where tourism demand is strong. Occupancy rates have also remained at high levels.

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