The Tokyo Shoko Research survey finds that unit price of 15 budget city hotel brands of 13 listed companies kept rising in March 2025, and the occupation rate continued to be as high as a year ago.
The average unit price of 15 brands was up 12.6% year on year to 16,679 yen. All of the target brands increased unit prices.
The growth rates were 10% to 15% for 9 brands, less than 10% for3 brands and more than 15% for 2 brands. The highest growth was seen in ‘Tokyu Stay’ at 20.4%.
All of the 15 brands had the occupation rates of 70% or higher in March 2025, and 9 brands 80% or higher.
According to Tokyo Shoko Research analysis, although the occupancy rates and average room rates of budget city hotels have remained high due to the demand for accommodation from domestic travel and business travelers, as well as the sharp increase in foreign tourists visiting Japan, the supply has not been able to keep up with the sudden increase in demand, resulting in a ‘supply and demand mismatch’ that is accelerating the shortage of rooms and the rise in average room rates. Furthermore, rising costs, including labor and energy costs, are also contributing to this trend, and the research predicts that this trend will continue in the future.
