It’s counter-intuitive, but it seems that the recent influx of new luxury hotels in Tokyo will ultimately lower the price of hotels throughout the city.

A recent Business Travel News article confirms what we’ve been saying for a while. Tokyo isn’t as expensive as it used to be. Especially when comparing similar accomodations in other major cities like New York and Paris.

BTN reports that a wave of luxury hotel development is bringing well known names like Conrad, Mandarin Oriental, Peninsula and Ritz-Carlton to Tokyo. While these premium brands will offer expensive rooms ($400 per night and up), the increase in available rooms is expected to lead competing hotels to lower their rates.

As the article notes:

“As the new properties open, competition between old and new will increase until the market is stratified into various levels of winners and losers,” the report stated. “Tokyo is already one of the least expensive cities among its peer group for luxury lodging—frequently pricing below London, Paris and New York City. It is fair to assume that room rates will fall even further in the coming years.”

Japan’s deflationary economy also has an impact on the price of lodging.

• Crop Of Mixed-Use Luxury Hotels Rise In Tokyo

The scandal surrounding falsified earthquake safety data that we first reported in late November has now widened to include nearly 90 buildings throughout Japan.

Thirty-Nine hotels have been shut down nationwide as a direct result of the falsified earthquake safety reports created by architect Hidetsugu Aneha.

Some owners have decided to tear down affected buildings rather than bring them up to code. The 162 room Meitetsu Inn Kariya in Kariya is being dismantled as well as at least one condominium.

The revelations about Aneha’s faulty work have lead to building safety concern throughout Japan. Aneha filed reports in the construction of hotels and condominiums. There has been some fear that the scandal could impact Japan’s real estate market. However, Tadashi Matsuda of the Real Estate Economic Institute Co., recently suggested to the Japan Times that the worst may be over:

“We’re assuming other developers will not turn out to have been involved in fudging quake-proof data,” he said. “A few more companies may turn up guilty. But I believe we’ve seen the worst.”

• Razing of Aneha buildings begins
• Aneha scam making buyers wary, for now

Sure you could argue that the last thing Tokyo needs is another luxury hotel, but can the world have too many luxury hotels? Certainly not, decided the team at Mandarin Oriental, who just celebrated the opening of their new Tokyo hotel.

Featuring spectacular views courtesy of location — the top nine floors of Nihonbashi Mitsui Tower — the hotel will cater to both business and leisure travelers. Spacious rooms and suites allow Western guests to unwind while enjoying the serenity of Japanese design. And for those seeking respite from the crowded Tokyo streets, the hotel invites guests and local residents to enjoy The Spa at Mandarin Oriental, Tokyo. Pools, saunas, an ice fountain, and more than 40 body treatments are available. Hotel guests can also take advantage of a fully stocked gym.

The hotel’s website describes the experience as:

The fabrics and textiles used throughout the hotel are exclusive creations capturing the essence of ‘Forest and Water’. Amidst the hectic pace of modern urban living, these two essentials of nature spell comfort and ease to everyone in Japan. The combination of our visionary design and our renowned service will meet your every expectation of a luxurious city hotel.

The Mandarin Oriental, Tokyo opened its doors in December 2005.

• Mandarin Oriental, Tokyo opens for business in Tokyo’s historic Nihonbashi district
• Mandarin Oriental, Tokyo
• Book A Room at the Mandarin Oriental