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Seibu Hotels to Launch an Affordable Hotel Brand

News Seibu Hotels announced that it would launch a separate brand with lower price of guest rooms in 2019. The new hotel brand will target middle-income travelers, especially international visitors who visit Japan but seek private home rentals because of the high cost of hotel rooms.

Mostly known for its Prince Hotels brand, Seibu currently owns three hotel brands with the new one to become the fourth. The company also has its interests in transport, namely railway and buses, party venues and eateries. The name for the new hotel brand is not known at the moment, but it might contain the word “Prince” in order to help improving recognition of the new brand with the famous title.

The average price per room will be around 10,000 yen (US$90) a night at new hotels. This is lower than Prince Hotels, where rooms start from 13,000 yen. However, Seibu doesn’t drop its core brand and will keep expanding it both in Japan and abroad. Currently, there are almost 50 Prince Hotels and Seibu plans to increase that number to 100 hotels in 10 years. The goal of the hotelier is to achieve sales revenue of more than 40 billion yen a year.

The primary locations for the new hotel brand are Tokyo and major cities of Japan that have airports or stops of shinkansen bullet train. Due to quite a sparse network of hotels in the Kansai region, especially in cities like Kyoto and Osaka, Seibu is particularly interested in opening more hotels there. As of now, the company directly manages its hotels, but it might make the new brand a franchise one in order to reduce investment risks.

The new brand is going to have state-of-art technology with artificial intelligence analyzing guest information to offer personalized plans. It will also be simple to make and manage a reservation via smartphone.


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