New Luxury Hotels Mean Lower Prices In Tokyo
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.