Tourists flocking to Tokyo hotels despite rising prices

posted on May 5, 2016

Average occupancy at 18 major Tokyo hotels edged up 0.1 percentage point to 83.8% in the year ended in March -- staying in the 80% range seen as near full occupancy -- even as hotels hike rates, though recent data shows signs of a downtrend.

Occupancy declined at 11 hotels and rose at seven, a Nikkei Inc. survey shows. At least 10 hotels saw average daily room rates climb 10% or more, with three more enjoying growth in the 9% range.

Palace Hotel Tokyo's occupancy slipped 2.4 points to 77.9%, while average room rates jumped roughly 15%. The hotel focused on service quality rather than guest numbers, including offering higher-quality food at the club lounge.

Average occupancy at the 18 hotels fell on the year for a second straight month in March, sliding 2.4 points to 84%. Tokyo Prince Hotel was one of the 11 hotels that were emptier, with occupancy sinking 2.1 points to 80.9%. It had focused on boosting average room rates by attracting higher-paying individual guests rather than groups. Keio Plaza Hotel Tokyo, where occupancy dropped 5.6 points to 86%, raised prices to boost profitability.

source by nikkei
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