Foreign and domestic operators are modernizing existing hotels in both urban and hard-hit rural regions while competing for more of the growing tourism demand.
Hotels

The rebranded Kamenoi Hotel Nachikatsuura, Nachikatsuura Town, Wakayama Prefecture

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Rebranding hotels — switching their brand identity after a change in management — is rapidly gaining momentum in Japan. The trend stems from a wave of hotel closures during the COVID-19 pandemic, which left many properties available for acquisition. 

Foreign hotel operators have seized the opportunity to renovate these facilities and relaunch them under their own brand names. Rebranding offers significant cost and time advantages over building new hotels, making it an appealing strategy. With rising demand from inbound tourists, domestic companies are also entering the market, heightening the competition.

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Quick Expansion to Meet Market Needs

In April, Accor, a leading French hotel group, rebranded 22 hotels previously operated by Daiwa Resort, a subsidiary of Daiwa House Industry. These properties, located throughout Japan from Hokkaido to Okinawa, were relaunched under Accor brands such as Grand Mercure. 

Originally designed for domestic customers, the hotels faced challenges in catering to international guests. The rebranding introduced all-inclusive packages featuring locally sourced ingredients with a Western twist and access to hot springs.

Dean Daniels, Vice President of Operations at Accor Japan, expressed optimism: "Repeat visitors to Japan are likely to focus on local experiences."

Meanwhile, US-based Marriott International is gradually converting 14 former Unizo Holdings hotels into Four Points Flex by Sheraton, debuting the brand in Asia. Similarly, UK-based InterContinental Hotels Group (IHG) plans to reopen a hotel in Osaka this December under the Garner brand. This property was previously managed by the now-defunct WBF Hotels & Resorts.

A guest room at Grand Mercure Ise-Shima Resort & Spa, Shima City, Mie Prefecture (provided by Accor)

A Hilton Hotels and Resorts executive highlighted the prominence of foreign hotel operators in rebranding. They emphasized that "the ability to quickly develop hotels is a significant advantage" in meeting the needs of inbound travelers.

Hilton has been expanding its presence by rebranding properties under the DoubleTree by Hilton brand. 

Masato Koike, a senior researcher at SOMPO Institute Plus with expertise in the tourism industry, explained: "The surge in hotel rebranding reflects the convergence of rising accommodation demand and the need for struggling businesses to offload their assets."

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Chateraise Enters the Rebranding Race

Domestic companies are also ramping up their rebranding efforts, focusing primarily on regional facilities to compete with the growing influence of foreign operators.

In July 2022, Mystays Hotel Management (based in Tokyo) rebranded the Kanpo-no-Yado lodgings under the Kamenoi Hotels brand. The Kanpo-no-Yado business was formerly owned by Japan Post. 

Chief Marketing Officer Hironori Yamamoto highlighted the advantages of these properties. "Some of these facilities are in prime locations, such as within national parks," he stated. "Establishing a new presence in such locations would be difficult. This makes them highly attractive for both domestic and international guests."

Yamamoto also stressed the importance of highlighting regional uniqueness. "We can transform the history and aged charm of these facilities into strengths, leveraging the legacy left by their predecessors," he said.

A renovated guest room at Kamenoi Hotel Nachikatsuura, located in Nachikatsuura Town, Wakayama Prefecture.
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Chateraise Expands into Hospitality

Chateraise Holdings (based in Kofu City, Yamanashi Prefecture), known for its confectionery business, has ventured into the hospitality sector. In September, the company transformed a recreational facility in Kure City, Hiroshima Prefecture, into a resort hotel, the Chateraise Gateaux Kingdom Setouchi. An expansive factory (approximately 3.3 million square meters) offering guided tours will be constructed next year.

A spokesperson from NOMURA Co., which oversaw the hotel's design and architecture, remarked, "Chateraise has a strong fan base overseas. We incorporated Japanese culture into the guest experience by including tatami rooms with beds."

Masato Koike added insight into the broader tourism context. "The over-concentration of inbound tourists in urban areas not only strains local residents but also reduces satisfaction among foreign visitors," he remarked. "Enhancing the value of regional facilities through rebranding can help revitalize tourism demand in rural areas."

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Author: Keiko Tamura

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