Tokyo's Luxury Hotel Boom: A Pipeline to Watch Through 2029

Tokyo's luxury hotel pipeline shows no signs of slowing, as JLL reports new international properties continuing to open in Q1 2026. The 1 Hotel Tokyo debuted on March 5, reinforcing the city's expanding high-end portfolio.

Further major openings are on the horizon. According to JLL, 2027 will see the arrival of the Pullman Tokyo Ginza and the Waldorf Astoria Tokyo. In 2028, Canopy by Hilton Tokyo Akasaka, Dorchester Collection, and Raffles Tokyo are slated to open, followed by The House Collective Tokyo in 2029.

JLL's Q1 2026 report indicates continued growth in average daily rates (ADR) across all segments, driven by increased foreign visitor demand, though the pace of this growth has begun to decelerate. Occupancy rates generally improved, with the notable exception of luxury hotels, which saw a marginal dip.

This dip in luxury occupancy is partly attributed by JLL to geopolitical tensions in the Middle East. However, the luxury sector demonstrated robust pricing power, achieving a 14.1% ADR increase even as other categories experienced more moderate growth.

Diversifying source markets helped mitigate reduced visitation from China, with rising numbers from other key countries supporting overall occupancy levels.

Our take: Tokyo has long been a discerning destination. This influx of high-profile properties reflects sustained confidence in its luxury travel market, even amidst global uncertainties. Strong ADR performance highlights the enduring demand for premium experiences, making Tokyo a critical market for international luxury brands.