Tokyo Shoko Research reported that ADR and the average occupancy rate of 13 major hotel brands reached the highest levels in FY2025 ending March 31 2026 after the pandemic ended.
ADR was up 8.6% to 17,818 yen, and the average occupancy rate rose from 82.3% in the previous year to 83.3%.
All of the brands exceeded the previous year’s ADR. The growth rate from 5% to 10% was seen in nine brands, 10% to 15% in three brands and 15% to 20% in one brand. The highest growth was seen in Hankyu-Hanshin Hotels with 16.2%.
Compared to FY2021 during the pandemic, the growth rates from 150% to 200% and 50% to 100% were seen in four brands each. The growth rate of 200% or higher was seen in Mitsui Garden Hotel (231.4%) and Tokyu Stay (221.0%).
Regarding the occupancy rate, all of 13 brands saw 70% or higher, and eight brands kept 80% or higher. Polaris Holdings, managing Best Western, reached 90.2%, only 90% or higher among 13 brands,
ADR of nine budget hotel brands was up 8.9% to 14,463 yen, and the occupancy rate rose from 82.8% to 83.9%. ADR of three city hotel brands up 9.4% to 25,490 yen, and the occupancy rate from 80.2% to 81.2%.
Tokyo Shoko Research predicts that while rising costs such as labor and utilities are putting pressure on hotel profits, demand for accommodation will remain robust. Despite the continued global uncertainty, they anticipate that the hotel industry will remain buoyant for some time, given the expectation of a further increase in inbound tourists.
