Historic arrival numbers continue to turbocharge hotel demand in Asia’s second-largest economy, according to speakers at the Mingtiandi Tokyo Forum. Watch the full recording>>
Senior leaders from SC Capital Partners, IHG Hotels & Resorts, AB Capital Investment and Axe Management Partners provided insights into the trends shaping hospitality and tourism in Japan during a panel discussion at Wednesday’s full-day event.
With Japan having welcomed more than 21.5 million visitors during the first half of 2025, SC Capital founder and chairman Suchad Chiaranussati noted that the country as recently as 15 years ago was receiving just 10 million foreign travellers a year — half of them never leaving the airport. The turnaround began in the mid-2010s as visa rules were eased, he said.
“I think the significant development happened when they decided to relax the visa-free to India, and then you suddenly have 700 million South Asians, plus almost a billion people within a four-hour flying time, suddenly either easier to get a visa or visa-free totally,” said Suchad, whose Singapore-based firm manages Japan Hotel REIT, which earlier this year closed on the $420 million acquisition of the Hilton Fukuoka Sea Hawk Hotel.
Long-Term Strength
At IHG, Abhijay Sandilya oversees growth, performance and operations in Japan, Guam, Saipan and Palau for the company’s 19 brands, including more than 55 properties in Japan. Last month the group announced a deal to manage a resort under development by Singapore’s Patience Capital on Mount Myoko in Japan.
Axe’s Gary Kwok speaks during the hospitality and tourism panel of the Mingtiandi Tokyo Forum
“I think the long-term fundamentals are very strong in Japan,” Sandilya told the audience of over 200 delegates at the Mandarin Oriental Tokyo. “Sector-specific tailwinds will continue. We heard lots of other stories about other asset classes coming back, but I think we’re generally somewhere midway in the clock.”
Axe CEO Gary Kwok hailed Japan’s tourism product as offering a strong and diverse experience, with cultural and shopping options catering to a wide range of international visitors.
“Let’s not forget that there’s a lot of regional cities still undeveloped and high-quality tourism destinations,” Kwok said. “So it’s definitely still scratching the surface right now.”
Teasing New Deals
AB Capital founder and CFO Bryan Lee, who leads the firm together with Alan Kam, revealed that his team recently acquired two more hotels in Japan, bringing AB’s portfolio to 11 assets in total in the country, including a hot spring resort near Nagano picked up earlier this year alongside local fund manager Kenedix.
The Hong Kong-based fund manager, which invests strictly in Japan hotels, is also gravitating towards more of a repositioning strategy involving a “big international brand”, according to Lee.
“I can’t say who, so don’t ask,” he quipped.
A Panel in Pictures
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