Gaia Series 91: Business Hotel Wars - Assassins from different industries
In the ever-shifting landscape of Japan's hospitality industry, where bullet train stops double as commercial goldmines, a new breed of business hotels is rewriting the rules of the game. This week's episode of Japan Hour delves into the high-stakes battlegrounds of Takasaki and Sapporo, chronicling how independent players and retail giants are taking on established titans like APA Hotel, Toyoko Inn and Marriott with flair, resilience and a distinct local touch.
In Takasaki, a pivotal hub in Northern Kanto, the space directly in front of the train station is ground zero for a clash of hospitality heavyweights. Here, APA Hotel and Toyoko Inn stare each other down, while Dormy Inn, a favourite for customer satisfaction, quietly builds its own loyal base. Amidst these giants stands a surprising victor: Coco Grand Takasaki, a business hotel that has managed to surpass its heavyweight rivals in both prestige and popularity.
Guest reviews are effusive. 'This hotel might match Dormy Inn or even be slightly better,' one customer says. With room rates starting at ¥14,000 (S$120), Coco Grand offers more than just a place to sleep. Guests flock not just for rest, but for rejuvenation. The in-house sauna, about twice the size of typical hotel offerings, is a major draw. Lavish rooms, an open-air bath and even a mini pool lend the hotel an indulgent atmosphere, crafted with intention.
That intention is no accident. Behind Coco Grand's design is architect Yoshihiro Kuwahara, known for his bold work in a vastly different category: The 'love hotel'. He applied the same principles to Coco Grand, aiming to create 'dreamy spaces that let guests forget their daily lives.' As he puts it, 'If you create something like that, they'll turn up. And they'll come back again.'
Adding to the intrigue is the hotel's backstory. Its parent company, Kimoto Seika, began life not in hospitality, but in confectionery. Known for its Western-style sweets and a legacy spanning over seven decades, the company pivoted into the hotel business in 2008 with the hope of reviving Takasaki. 'Running a hotel has also unexpectedly improved staff perks,' says Director Takamaru Kimoto, noting that even their factory's break room features furniture of hotel quality.
However, success is never static. APA Hotel is planning to erect a new facility mere steps away. As major chains prepare their counterattacks, the competition intensifies and Takasaki's quiet disruptor will once again have to defend its crown.
If Takasaki is a turf war, then Sapporo is a seismic shift. Here, the story follows Belluna, Japan's largest mail-order company, and its audacious leap into hospitality. Known for its catalogue empire targeting women in their 60s and 70s, Belluna's pivot into hotels is part of a larger survival strategy amidst rising printing and paper costs.
President Kiyoshi Yasuno, 80, is no stranger to disruption. With more than 3,800 employees and ¥208 billion in annual sales, his decision to invest ¥10 billion in building a towering 26-storey, 605-room hotel in Sapporo speaks volumes. 'Every product has the right timing to sell,' he says, a philosophy that now applies to room bookings rather than blouses.
The hotel's new manager, 34-year-old Kazuki Okamura, is thrust into a whirlwind of pressure and expectations. 'There were times I thought I might not be able to fulfil what was entrusted to me,' he admits candidly. But deliver he does, even when the hotel's opening is abruptly brought forward by more than a month. Short on towels, linen and staff, Okamura hand-delivers pleas for early delivery and helps lug mattresses himself.
His perseverance pays off. On March 1, the SAPPORO HOTEL by GRANBELL opens, with room rates starting at ¥16,000. Guests are immediately captivated. The panoramic views from the grand bath, the semi-open-air hot spring, and an opulent breakfast buffet featuring 75 dishes, including an all-you-can-eat seafood bowl, become instant hits. One diner calls it 'a jewel box', while another proclaims, 'Freshly made omelettes are the best.'
The food strategy, combining local flavours with operational pragmatism, is ingenious. By outsourcing fish and meat prep, the team offers variety without overwhelming staff. The hotel's live kitchen adds a dose of spectacle, turning breakfast into an event. 'We want to offer as many dishes as possible,' Okamura says, 'but we're short of staff.'
Despite the odds, Belluna's gamble is paying off. Bookings pour in at twice the expected rate, buoyed by inbound tourism and school holidays. President Yasuno's gamble to leap from mail-order to morning omelettes is starting to look like a masterstroke.
As the episode closes, viewers are left with a clear message: in Japan's business hotel wars, it is not just about rates or location. It is about imagination, resilience and knowing exactly what your guests did not realise they needed.
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