Hoshino Resorts Inc., known for its luxury hotels and traditional lodgings blending Japanese aesthetics and contemporary design, is making a foray into the urban hotel market with a new brand targeting tourists.

Yoshiharu Hoshino, a fourth-generation hotelier and the chief executive officer of the hotel operator, announced Thursday the launch of the company's fourth brand, OMO, and said two new hotels under the brand will be opening next spring with more to come.

"We discovered that many business hotel customers are actually using them for tourism purposes," Hoshino said at a news conference, noting the company plans to service that market.