TOKYO - Japan’s hotel industry appears to be thriving as a surge in inbound tourism drives accommodation prices in popular destinations to record highs. Yet domestic travel demand has remained sluggish, while labor shortages and rising construction costs have made new hotel development increasingly expensive.
Amid these challenges, business hotel chain Toyoko Inn, the country’s largest by number of rooms, continues to attract strong support from business travelers. A key reason is its refusal to adopt the dynamic pricing systems now common across the industry. Instead, the company largely maintains a fixed-price model. Sales for the previous year reached a record 143.9 billion yen.
Leading the company is Maiko Kuroda, daughter of founder Norimasa Nishida. She inherited the business from her father in 2012, when the company was reeling from scandal and facing serious operational difficulties. Since then, she has overseen its recovery and expansion.
Kuroda had once left the company after marrying and giving birth. Her eventual decision to return to a struggling business—and ultimately succeed her father as president—has become central to the company’s story.
Founded in 1986 with its first hotel in Kamata, Tokyo, Toyoko Inn steadily expanded nationwide during Japan’s bubble-era boom. Today it operates 348 hotels with more than 80,000 rooms, making it one of Japan’s largest hotel operators. Most of its properties are located within a five-minute walk of railway stations.
While hotel rates in Tokyo averaged below 10,000 yen during the pandemic, recent prices have climbed to around 17,000 yen. During events and peak travel seasons, rooms at many business hotels can cost 20,000 to 30,000 yen a night due to fluctuating pricing systems.
Toyoko Inn has taken a different approach. At its Kabukicho property in Tokyo, weekday rates remain around 11,000 yen, with peak days at roughly 14,000 yen. Each hotel sets ceiling prices for weekdays and busy periods, but rates generally do not exceed those levels.
The chain is also known for complimentary breakfast services, including freshly made rice balls at some locations. Its membership program has more than 8 million members. Customers who pay a 1,500 yen fee and stay 10 nights receive one free night.
Toyoko Inn places heavy emphasis on repeat customers, referring to them as familiar guests. Managers use tablets that display guest preferences and previous stay information when members check in, allowing staff to personalize greetings and sometimes offer complimentary room upgrades.
Kuroda said the company’s philosophy reflects the original role of business hotels in Japan: providing clean, affordable and conveniently located rooms for working travelers. While competitors pursue higher margins through aggressive pricing, Toyoko Inn continues to bet on stability, repeat business and value.
Source: テレ東BIZ
