As Kasumigaseki Capital announces new hotel openings in Japan at a rapid pace, examples of renovations of older hotels and its business model have been introduced. Focus has also been placed on its approach of selling the land to investors rather than holding it itself, then leading construction as project manager.
As Japanese hotel operators face greater difficulty opening properties than overseas players in Japan's hotel market, Kasumigaseki Capital has been advancing new hotel openings at a rapid pace. The feature includes an interview with COO Ogata (緒方) on the company's hotel-opening strategy and the background to it.
The feature covers a case in which the company acquired and renovated an older business hotel in Nagoya, discussing the potential for renovations to raise room rates and their impact on occupancy. The article gives the trend in room rates after renovation as a specific example.
New-build plans are reportedly being repeatedly reviewed in response to rising interest rates and construction costs, with moves to reconsider conventional hotel-opening plans. Attention is focused on the choices the company will make in response to changes in market conditions.
The company's business model is described as one in which it does not own the land itself, sells the land to investors, and then leads the construction as project manager.