Fears of a shortage of accommodations ahead of the Tokyo 2020 Olympic and Paralympic Games are quickly becoming a thing of the past as companies ranging from apparel brands to wedding service providers jump into the hotel business.
Coupled with expected expansion of the minpaku private lodging market as a law setting rules for the nascent service takes effect in June, there is now fear of an oversupply of accommodations, which could trigger a price war.
According to real estate market research firm CBRE K.K., the number of hotel rooms in eight major cities, including Tokyo, Osaka and Kyoto, is expected to total 330,000 as of the end of 2020, up 32 percent from the end of 2016.