Occupancy Rates Near Record Lows At 3 Venerated Tokyo Hotels

TOKYO (Nikkei)--Occupancy rates at Japan's three most prestigious hotels -- the Imperial Hotel Tokyo, Hotel Okura Tokyo and Hotel New Otani Tokyo -- dwindled to historic lows last month with the global recession crimping patronage from foreign tourists and domestic business travelers.

The 1,005-room Imperial Hotel Tokyo saw its occupancy rate tumble to 59.6%. Excluding periods of renovations, this is the lowest since the 58% recorded in December 1986, when the strong yen kept overseas visitors away. Occupancy rates usually fall in January, but only to around 70%.

Hotel Okura Tokyo had an occupancy rate of 45% last month. Except for 1973, when a separate wing was opened, this is the lowest figure for the 833-room hotel since it opened in 1962.

Hotel New Otani Tokyo came in last of the three, with an occupancy rate of 37%.

A drop in foreign tourists is the main reason behind these lackluster figures. According to the Japan National Tourist Organization, visitors from overseas declined on a year-on-year basis for five months straight since August 2008.