With hotel suites as spacious as a house being built in magnificent sky-high edifices, Tokyo is experiencing its second "boom" in the luxury hotel business. After a surge in the 1990s, five high-end hotels have opened
since 2005 and another four are to follow in the next five years. With esteemed international hotel groups showing such confidence in Tokyo demand, jstyle examines recent trends and coming attractions in this industry of extravagance.
Text by Natsuno Katori

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At around A$21,000 per night, a suite at the Ritz-Carlton, Tokyo is the most expensive place to stay in all of Japan. From its swimming pool and guestrooms beyond the 46th floor, pampered patrons enjoy glorious views of the Tokyo metropolis. The Ritz-Carlton, Tokyo, situated inside Roppongi's recently opened Tokyo Midtown mega-complex, was purpose-built for the wealthiest citizens of Japan and the world.

"Our target clientele is the highest 1-2 per cent personal income earners," The Ritz-Carlton, Tokyo's president and chief operating officer Mr S Cooper says. "The Japanese market for luxury products and services is doing very well and we are hoping to expand to other Japanese cities in the future."

 

The entrance to the Ritz-Carlton, Tokyo located inside the mega-complex Tokyo Midtown

The latest boom in Tokyo's luxury hotel business was spearheaded by the opening of the Grand Hyatt Tokyo in 2003, with Conrad Tokyo (2005), Mandarin Oriental Tokyo (2007) and The Ritz-Carlton, Tokyo (also 2007) following close behind. In September, The Peninsula Tokyo is due to open, with the Shangri-La Tokyo planned for 2009 and Jumeirah Tokyo by 2011, among others.

The rush to build luxury rooms has raised concerns of an over-expectation of demand in this select industry. The luxury hotel industry itself, however, might argue that Tokyo is only catching up with other international cities.

Not so long ago, when people spoke of Tokyo's luxury hotels they were referring to the homegrown Imperial Hotel, Hotel New Otani and Hotel Okura - collectively called "The Old Three". The Westin Hotel Tokyo, Park Hyatt Tokyo and Four Seasons Hotel Tokyo, which opened one after another in the 1990s, became "The New Three".

Compared to London and New York however, Japan has far fewer high-end hotel rooms. Only about 6 per cent of the total hotel rooms in Japan are in this category.
Mandarin Oriental Tokyo's general manager Mr C Hassing says thousands of Tokyo residents travel overseas each year, many of whom are familiar with the highest qality hotels of other countries. Furthermore, The Peninsula Tokyo's general manager Mr C Thompson believes the Japanese people are generally sensitive and knowledgeable of the world's top brands.

People travelling to Tokyo from abroad has also jumped up considerably over the past few years, with approximately five million people in 2003 to more than 7.3 million in 2006.

As such, the luxury hotel industries sees strong and continuing demand from a clientele not only restricted to the world's corporate and upper-class elite, but their Japanese counterparts as well.

On top of this, there is an added incentive for large-scale redevelopment projects to house more than just new office buildings to serve the growing economy. Building luxury hotels in renewal sites released by the Japanese government lifts an area's overall land and business value. For this reason, urban developers have actively worked to attract high-end international hotel chains.

Emerging competition in the extravagance stakes has seen The Old Three respond. Investments of 10 to 17 billon yen (A$1billion to A$1.7 billion) have been poured into an increased number of suites, executive floor guestrooms and luxury facilities. The New Three have adopted similar strategies, resulting in increased revenue for existing luxury hotels and revealing a strong, underlying demand for more high-end accommodation.

With the Hyatt Regency Hakone Resort and Spa opening last year and Aman Resorts Kyoto for 2011, activity in the luxury hotel industry shows no sign of waning or being restricted to Tokyo alone.

Mandarin Oriental Tokyo (Nihonbashi)	The Ritz-Carlton, Tokyo	The Ritz-Carlton, Tokyo
With its headquarters in Hong Kong, the Mandarin Oriental group includes 29 luxury hotels in 17 countries. The company's first foray into Japan opened last year with the six-star Mandarin Oriental Tokyo. From its 195m tower, guests enjoy amazing views of Tokyo harbour, the Imperial Palace and Mt Fuji. There are 179 rooms, with standard rooms occupying more than 50sqm and suites up to 250sqm. Located near Tokyo's luxury shopping towns of Ginza and Nihonbashi, it is also close to Japan's political and economic hubs of Marunouchi and Otemachi.	Costing more than A$3 billion and opening in March, Tokyo Midtown is a multipurpose high-rise complex combining business, shopping, entertainment and residences. Its top section - the highest building in Tokyo - houses the five-star Ritz-Carlton and its 248 luxury rooms.	With its imminent opening, The Peninsula Tokyo will mark the first Japanese hotel for this historic, Hong Kong-based luxury hotel chain. With 47 high-end suites included in its 314 guestrooms, The Peninsula Tokyo will rank as one of Japan's high-end luxury hotels. Standard rooms will start at more than A$700 per night.
Aman Niwa Kyoto	Shangri-la Hotel Tokyo (Marunouchi)	Jumeirah Tokyo (location to be announced)
This Indonesian-based luxury resort group has 18 Aman hotels mainly around Asia. The Aman Niwa Kyoto, to open near this city's famous Golden Pavilion in 2011, will employ authentic Japanese architecture. Incorporating Japan's ryokan (traditional inn) hospitality and using Kyoto's rich history, tradition and scenery, the five-star Aman Niwa Kyoto is expected to be a ryokan matched by no other. A stay in one of its 10 wings is estimated to start at more than A$1000 per night.	The giant Hong Kong Shangri-la group is set to expand its five-star operations into the centre of Tokyo. Locating its hotel in the middle of the business district, it is only a minute away from Tokyo Railway Station. More than 200 standard rooms will each occupy a spacious 50sqm. The Shangri-La, expected to open in 2009, will have 24 exclusive suites.	This United Arab Emirates hotel group hopes to expand its five-star operations to Tokyo by 2011. Its famed hotel, the Burj Al Arab Jumeirah of Dubai, houses only suites and was selected as the World's Best Luxury Hotel at the 2006 World Travel Awards. The group's expansion to Japan will follow on from London and New York.

This walk-in closet at The Peninsula Tokyo doubles as a ladies' powder room	This communal lounge in the Hyatt Regency Hakone Resort and Spa is a relaxing area for guests to enjoy refreshments around a cosy fireplace
The smallest guestroom is a generous 56sqm and every room comes equipped with a 32-inch plasma TV, CD/DVD and high-speed internet access	The French Dining Room at the Hyatt Regency Hakone boasts an exquisite selection of French cheese and wines along with the best in local produce

Brief history of Tokyo's luxury hotel industry The Old Three era: The Imperial Hotel, Hotel Okura Tokyo, Hotel New Otani Tokyo First Tokyo luxury hotel boom (1990s) launches The New Three era: The Westin Hotel Tokyo (opened 1994), Park Hyatt Tokyo (1999), Four Seasons Hotel Tokyo at Chinzan-so (2002)- Era characterised by the expansion of western luxury hotel groups into Japan, bringing guestrooms of a size previously unheard of (more than 40sqm), along with lavish bathrooms and interiors created by overseas designers. Prior to the second boom: Four Seasons Hotel Marunouchi (2002) Grand Hyatt Tokyo, Roppongi Hills (2003) Second Tokyo luxury hotel boom (2005 and beyond): American-based Conrad Tokyo (2005), the most luxurious of the Hilton Hotel Group; Hong-Kong-based Mandarin Oriental Tokyo (2005); Hyatt Regency Hakone Resort and Spa (2006); The Ritz-Carlton, Tokyo (March, 2007); Hong-Kong-based The Peninsula Tokyo (September, 2007); Hong-Kong-based Shangri-La Hotel (2009); Indonesian-based Aman Niwa Kyoto, first Japanese opening of an Aman resort (2011); United Arab Emirates-based Jumeirah Tokyo (2011) - Current boom sees the penetration of Asian groups into the Japanese market. Catering for the wealthy of Japan and the world, it is marked by the most expensive hotel suite in the country ($A21,000 per night) and rooms as hugely spacious as 250sqm.