Hotel

"Japan’s hotel sector remained strong in 2025, with ADR and RevPAR at record highs and occupancy inching towards pre-pandemic levels. Growth is expected to continue in 2026, albeit at a more moderate pace."

"Japan’s hotel sector maintained robust momentum in 1H/2025, supported by record-breaking ADR and RevPAR growth driven by strong inflows of inbound tourism, which reached 21.5 million visitors in the first half of the year. While occupancy remains slightly below pre-pandemic ultra-tight levels due to labour shortages, improvements in hiring and the adoption of technology to improve operational efficiency point to further upside potential. While active promotion by neighbouring tourist destinations may temper Japan’s growth to some extent, demand is likely to rise in regional centres as repeat travellers seek authentic local experiences. Overall, growth in Japan is expected to remain firm, albeit not spectacular."