Japan's Mori Trust Co. is planning to expand its hotel business spurred by a rising number of inbound tourists and business travelers, Bloomberg is reporting. Mori is considering the renovation of several hotels and development of new resorts in Japan, Miwako Date, executive managing director of the Tokyo-based developer, said in an interview with Bloomberg.
The company plans to open a luxury hotel in Kyoto in 2015 after redeveloping a Marriott Hotel in Tokyo last year, said Date.
“It is good timing,” said Date, who is the daughter of billionaire Akira Mori, CEO of Mori Trust. “We are also at a point where we have a better view of where to allocate future investment.”
Mori Trust owns and manages about 30 hotels in Japan including the Conrad in Tokyo.
The only thing holding the company back, Bloomberg points out, are rising construction costs. Building costs have risen about 10 percent from 2013, according to the Construction Research Institute.
“The construction costs remain the negative,” Date said, adding that the company will try to secure the type of land they would want to invest in early and be prepared to start building any time.
The good news is the tourist data. The number of tourists to Japan in May rose 25 percent from a year earlier to 1.1 million, following a record 1.2 million tourist arrivals in April, according to estimates by the Japan National Tourism Organization.