Alta Thoughts (November 2025)
By Rakesh Patel
Tokyo has always held a special place for me. I spent the 1990s working in financial markets there, witnessing a bubble – and then a burst in slow motion.
So it was a real pleasure to be back this month for the JHIS hotel investment conference and to see the city buzzing with energy once again, whilst maintaining its unique elegance.
Some things have changed noticeably, especially the diversity on the streets. There are more foreigners living and working in the city and a surge in visitors – Japan is on track for 40 million tourists in 2025. For a country facing a rapidly aging population, this injection of global vibrancy and demographic diversity feels both timely and positive.
On the investment front, sentiment at the conference was decidedly bullish. Japan continues to offer compelling opportunities supported by sustained tourism growth, limited new supply, inefficiencies that create opportunities for yield enhancement, and the availability of inexpensive yen financing.
There are always risks and these centre around geopolitical tensions, most recently with China, interest rate movements, yen volatility, and high operating costs.
I also joined a panel on lifestyle hotels, with Ace Hotels and Trunk Hotels, where we discussed the growing appetite for more unique, experience-led concepts rooted in local culture, community, and F&B. It’s an area where Japan has enormous untapped potential.
Some useful Japan data here from STR.
On a personal note, it was wonderful to see a city that was so good to me come alive again – even if it took some time.
Below are a few of our recent thoughts posted on LinkedIn. Always good to hear your feedback. You can follow us directly on LinkedIn and go to our website.
Interview with the founder of Six Senses and Soneva
One of the highlights for me at HICAP was an interview with Sonu Shivdasani, OBE, the visionary founder of iconic brands Six Senses and Soneva. He spoke about his battle with cancer, and shared his reflections and inspirations on the future of hospitality.
It’s well known that Sonu and his wife, Eva, pioneered the concept of “barefoot luxury” in the 1990s, creating an entirely new genre of hospitality that has influenced resorts and travelers around the world. Eventually they exited both brands.
More recently Sonu embarked on a personal journey – one that included both conventional and alternative treatments as he successfully overcame cancer.
That experience inspired their latest brand called “Sosei”, meaning rebirth in Japanese and based on Japanese principles of wellness and hospitality. For Sonu, the next chapter of luxury hospitality is mindful, restorative, and transformative.
Asia Pacific Hotels & Hospitality Performance & Outlook
CBRE’s latest hotel research report shows that while tourism in Asia Pacific is stabilising, strong growth pockets remain. IATA projects the world’s highest passenger traffic growth for Asia Pacific in 2025, and WEF data highlights tourism’s outsized contribution to GDP across all Asian sub-regions.
Despite this momentum, macroeconomic and geopolitical factors continue to shape travel decisions. Hotels are responding with dynamic pricing as ADRs outpace inflation and occupancy gradually normalises.
Investment appetite remains strong. Limited supply, rising construction costs and underpenetrated luxury segments present opportunities, while conversions and co-living continue to gain traction in key markets. Full year investment is on track to reach the US$16.3 billion recorded last year.
