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Japan Real Estate Insights by estie
Japan Real Estate Insights by estie
Japan Real Estate Insights by estie
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Hotel
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Steady Lodging Demand in Kansai Area Drives Hoshino Resorts REIT

Hotel

Steady Lodging Demand in Kansai Area Drives Hoshino Resorts REIT

Hoshino Resorts REIT, Inc. announced operating results for September on November 5, 2025. Portfolio revenue rose 10.8% year over year to JPY 5,448 million from JPY 4,915 million. Occupancy improved to 80.7% (+5.5pp), average daily rate (ADR) was around JPY 21,200, and revenue per available room (RevPAR) was in the JPY 17,000 range—roughly 10% above the prior year.

While revenue at properties operated directly by Hoshino Resorts edged down, strong performance at third-party-operated urban hotels drove overall growth. Revenue from Hoshino-operated assets was JPY 2,602 million (−4.4% YoY), with occupancy stuck in the low-79% range. Given their concentration in hot-spring and resort destinations, these assets are more exposed to weather and disaster-related demand swings. In particular, recovery of bookings at the “KAI” brand in Kyushu lagged due to earthquakes and heavy rains.

By contrast, urban hotels in the Greater Tokyo and Kansai regions—including brands such as “the b” and “ANA Crowne Plaza”—benefited from expanding leisure and business demand, lifting occupancy into the 81% range. Anticipatory demand tied to the Expo also provided a tailwind, with externally operated assets boosting the portfolio overall.

According to estie J-REIT data, the average going-in cap rate for 12 lodging assets acquired by Hoshino Resorts REIT between 2021 and 2025 was about 5.0% in 2021, rose into the 5.1% range by 2023, and eased to around 4.7% in 2025. Across the period, yields on lodging assets hovered around 5% (editorial analysis based on estie J-REIT data).

Portfolio (Overall)

  • Occupancy: 80.7% (+5.5pp YoY)

  • ADR (Average Daily Rate): approx. JPY 21,200 (+3.2%)

  • RevPAR (Revenue per Available Room): approx. JPY 17,100 (+10.9%)

  • Revenue: JPY 5,448 million (+10.8%)

Hoshino Resorts–Operated Assets

  • Occupancy: 79.1% (−2.4pp YoY)

  • ADR: approx. JPY 51,900 (−0.6%)

  • RevPAR: approx. JPY 41,100 (−3.6%)

  • Revenue: JPY 2,602 million (−4.4%)

Third-Party–Operated Assets

  • Occupancy: 81.1% (+7.5pp YoY)

  • ADR: approx. JPY 14,200 (+16.6%)

  • RevPAR: approx. JPY 11,500 (+28.4%)

  • Revenue: JPY 2,846 million (+29.8%)