The surge in tourists visiting Japan is stretching the ability of hotels to accommodate them in a sector constrained by high costs, forcing developers to think out of the box for means to quickly increase lodging options without breaking the bank.
Japan is on target this year to beat the record 13.4 million visitors in 2014, thanks to a weak yen and easier visa requirements for some Asian countries. The government is aiming to attract 20 million visitors by 2020, when Tokyo hosts the Olympics, in a bid to help revitalize the world's third-biggest economy.
The rising influx of tourists is already squeezing existing accommodation supply in Tokyo, which has about 100,000 hotel rooms. Just 7,600 rooms are scheduled to be added in the next three years, according to STR Global, a research firm for the hotel industry.