Hyatt Hotels and its development partner, Kiraku, are making significant strides in the Japanese hospitality industry with their joint venture aimed at creating the new ATONA hotel brand. This initiative marks Hyatt’s ambitious foray into developing a series of hotels across regional Japan, all centered around the luxurious concept of hot springs.
The duo has secured initial funding for three key developments in Yufu, Yakushima, and Hakone, setting the stage for the first properties to open in 2026. In a move demonstrating their commitment to this innovative project, Hyatt and Kiraku have established the Atona Impact Fund. This financial backbone will support the growth of their new hotel chain. Alongside their investment, Takenaka Corporation, a prominent Japanese construction firm, has also contributed to the fund, bringing the initial total to JPY 10 billion. This amount is halfway towards their ultimate goal of JPY 20 billion, aimed at covering all development costs.
The focus on these initial three locations is a strategic choice, targeting areas known for their natural beauty and cultural significance, thereby enhancing the appeal of the ATONA brand. ATONA hotels are designed to offer an unparalleled luxury wellness experience. Each hotel will feature 30 to 50 rooms, providing guests with not just comfort, but also a deep connection to local culture and nature. The inclusion of traditional Japanese hot springs, combined with modern amenities, positions ATONA as a unique offering in the hospitality market.
Esteemed Japanese designer Kenya Hara leads the brand’s design vision, with architectural contributions from Shinya Kojima and Ayaka Kojima of kooo architects. This collaboration ensures that each property will be a harmonious blend of tradition and modernity, providing a truly original experience.
Japan’s tourism sector has seen remarkable growth, and Hyatt’s strategic move aligns with the country’s ambitious tourism goals. Before the pandemic, Japan recorded nearly 32 million international visitors in 2019, and the target is to double this number to 60 million by 2030. Hyatt and Kiraku’s initiative taps into this expanding market, aiming to attract tourists to regions beyond the bustling hubs of Tokyo, Osaka, and Nagoya. This decentralized approach is poised to boost local economies and spread the benefits of tourism across the country.
Hyatt’s expansion in Japan is not limited to the ATONA brand. The company currently operates 20 hotels across the country. Recent openings include the Hyatt House Tokyo Shibuya, which caters to long-stay guests with apartment-style accommodations. In late 2023, Hyatt also introduced the Unbound Collection by opening the Hotel Toranomon Hills in Tokyo in collaboration with Mori Building. Additionally, Hyatt is set to expand with two Caption by Hyatt hotels in Osaka and another in Tokyo’s Kabutocho district by 2025.
This strategic partnership and the development of the ATONA brand signal a significant boost to the travel and hospitality industry in Japan. By offering unique, luxurious experiences that blend local culture and natural beauty, Hyatt and Kiraku are set to attract a diverse range of tourists. The economic impact of this venture is expected to be substantial, driving growth not just for the hospitality sector but also for regional development across Japan.
