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Tokyo room rates reached a new peak in May


Tokyo hotels hit record revenue despite lower occupancy, fueled by high room rates and a surge in international travelers.

Tokyo’s hotel industry reported record-high average daily rate (ADR) and revenue per available room (RevPAR) in May, according to preliminary data from CoStar. CoStar is a leading provider of online real estate marketplaces, information, and analytics in the property markets.

Japan’s growth in hotel revenue per available room (RevPAR) has remained extremely impressive over the past 15 months – a function of a later opening post-pandemic, above-average inflation, and an influx of international demand. That’s largely reflected in average-daily-rate (ADR) growth, although through much of 2023, the first and third points helped drive double-digit occupancy increases as well.

Occupancy growth has trailed off, however, with single-digit increases or declines year over year for the past five months. At the same time, rates have grown more than 20% year over year for each of the past 19 months and show no signs of deceleration.

Indexing performance provides further insight into what’s happening. Even as the ADR index continues to climb, the occupancy index has languished at around -10% for the past six quarters, suggesting that present-day occupancy levels are the new baseline for Japan.

May 2024 (year-over-year % change):

  • Occupancy: 78.4% (+4.2%)
  • Average daily rate (ADR): 37,671.27 (+44.0%)
  • Revenue per available room (RevPAR): JPY 29,529.07 (+50.0%)

According to daily data, Tokyo’s occupancy levels peaked on Saturday, 25 May (89.1%), helped by a number of music events held in Tokyo Dome. The market recorded its highest RevPAR levels on the same night, at JPY 38,913.89. Overall, Tokyo’s occupancy remained above the 70% mark throughout the month apart from five days.

The market’s room rates spiked on Constitution Memorial Day (Friday, 3 May), at JPY 44,743.14; closely followed by Saturday, 4 May (Greenery Day), at JPY 44,038.37.

Apart from events in May, a number of contributing factors, such as a later opening post-pandemic, above-average inflation, and an influx of international demand, also had a significant impact on Tokyo’s ADR and RevPAR increases.

Vicky Karantzavelou
Co-Founder & Chief Editor - TravelDailyNews Media Network

Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales. She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.