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“The Olympics Games Effect”: How will Tokyo’s Hotel market cope?

A new report from Jones Lang LaSalle analyses the potential effect of the Olympics on Tokyo’s Hotel market

SINGAPORE, 06 November 2013 – As the world turns its attention towards Japan in the run up to the 2020 Olympic Games, Jones Lang LaSalle’s Hotels & Hospitality Group (H&H) has released a report analysing the possible impact on the Tokyo Hotel market, before, during and after the event. “Tokyo 2020: The Olympic Games Effect” was produced in collaboration with STR Global, the leading provider of worldwide hotel data for benchmarking services and hotel market research, and is the first in a series of updates that will examine the “Olympic Games Effect”.

The hotel industry of the host city is traditionally one of the major benefactors of the Olympics Games, given the direct impact of related tourist arrivals and demand for short term accommodation. In particular, the report highlights the likely growth in Revenue per Available Room (RevPar) which will, in turn, enhance the attraction of Tokyo hotels as an asset class to investors both domestically and globally.
Frank Sorgiovanni, Vice President, Research, Jones Lang LaSalle H&H Group, Asia said, “Both Beijing and London experienced RevPAR growth during the seven years following the announcement, up to the Olympic year, and we expect this to also be the case in Tokyo. This will have a number of positive effects on the market and, given that Tokyo is a more mature accommodation market than previous hosts like Beijing, there will be limited post-Games decline in RevPAR.”
Tom Sawayanagi, Managing Director Japan, Hotels and Hospitality Group, noted, “The Japanese Government estimates that the City will attract 8.5 million tourists during the Games. With occupancy in Tokyo consistently hovering around 80 percent, there is some concern that current room supply will not be able to meet the demand traditionally experienced by an Olympic Games host city. While you could argue that this will lead to a number of new hotel developments in the short to medium term, we actually saw occupancy in London decrease during the City’s Games period in 2012, as non-urgent leisure and business travellers delayed their trips. In this sense, controlling room rates will be an important factor for Tokyo hotels that intend to focus on demand coming from the Games“.

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About Jones Lang LaSalle 




Jones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 2.6 billion square feet and completed $63 billion in sales, acquisitions and finance transactions in 2012. Its investment management business, LaSalle Investment Management, has $46.7 billion of real estate assets under management.
Jones Lang LaSalle has over 50 years of experience in Asia Pacific, with over 26, 100 employees operating in 79 offices in 14 countries across the region. The firm was named ‘Best Property Consultancy’ in three Asia Pacific countries at the International Property Awards Asia Pacific 2013, and won nine Asia Pacific awards in the Euromoney Real Estate Awards 2013. 


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