Latest news with #TokyuCorporation
NHK
19-05-2025
- Business
- NHK
Last phase of redevelopment of Tokyo's Shibuya Station area begins
The last stage of large-scale redevelopment around Shibuya Station in Tokyo has begun, in what has been called a once-in-a-century project. Under the work so far, the layout of the station has been changed. A pedestrian deck that connects the station's east and west sides has been built. A station square known for the iconic Hachiko dog statue has been improved. Shibuya Sakura Stage is among the new high rises that have opened in the vicinity of the station. Tokyu Corporation, a company in the consortium undertaking the project, says it was originally planned to be completed by March 2028 but has been delayed by seven years to March 2035. The company attributes the delay primarily to a review on the flow of pedestrians and additional measures against disasters. Going forward, two buildings of the Shibuya Scramble Square complex will be constructed. A pedestrians' walk way will connect the station from east to west and from north to south. More squares will be provided. Tokyu President Horie Masahiro said the mission is to evolve the Shibuya area into a global city. He said his company will pursue the creation of a vibrant city that is resilient to disasters.
Yahoo
15-05-2025
- Business
- Yahoo
Investors cautious as Japan hotel costs climb
Japan's hotel sector is experiencing unprecedented demand as international tourism rebounds sharply, but rising operational costs and regulatory pressures are prompting investor caution. Despite a record influx of visitors and soaring hotel rates, concerns are growing over the long-term sustainability of recent profits. In 2023, Japan welcomed nearly 37 million international visitors, surpassing its previous peak in 2019. The weaker Japanese yen has made the country an attractive destination for cost-conscious travellers, contributing to a major uptick in tourism spending. Last year, inbound tourists spent ¥8.14 trillion (approximately $56 billion), a 50% increase over 2022 and nearly double pre-pandemic levels. This spending boom has significantly benefited Japan's hospitality industry. Hotel occupancy has surged, and room rates have climbed to record highs. According to industry analytics firm STR, average hotel prices in Japan rose 12.6% in September to ¥19,381 per night. In Tokyo, average rates exceeded ¥26,000—more than twice the levels seen before COVID-19. Publicly listed companies with hotel-related businesses, including Japan Hotel Reit Investment Corporation, Tokyu Corporation, and Resorttrust, have reported improved earnings as a result of strong demand and pricing power. Despite solid financial results, share prices across the sector have lagged. One source of concern is heightened regulatory oversight. The Japan Fair Trade Commission recently issued warnings to 15 hotel operators in Tokyo for exchanging data on room prices and occupancy—behaviour the regulator believes may violate anti-monopoly laws. The commission also urged two nationwide hotel associations to ensure their members comply with competition rules, suggesting the practice of data-sharing may be widespread. If investigations lead to increased enforcement or changes in pricing strategies, it could reduce the sector's ability to maintain current rates. Operational costs are also weighing on the outlook for Japan's hotel industry. Labour shortages, driven by the country's ageing population and declining workforce, are pushing wages higher. Although the weak yen supports tourism by making Japan more affordable for foreign visitors, it also raises the cost of imported goods, including energy and construction materials. Rising inflation is affecting all areas of hotel operations—from utilities and maintenance to food supplies—placing additional pressure on profit margins. Industry analysts warn that these factors could limit future earnings growth, even as tourist arrivals continue to rise. While Japan remains a top destination for global travellers, the hotel industry's ability to convert demand into lasting investor value may depend on how it navigates the dual challenges of regulatory intervention and rising costs. "Investors cautious as Japan hotel costs climb" was originally created and published by Hotel Management Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
