Japan stopped using Lunar calendar on year Meiji 6 (1873), since then New Year in Japan is celebrated on January 1 and not by Lunar calendar, where New Year by Lunar calendar is what is referenced as Chinese New Year.
However, Japan has become one of the top popular vacation destinations for Chinese and during Chinese New Year large number of Chinese tourists visit Japan. During Chinese New Year typical tourists destinations in Japan will be busy and may not find a lot of deals on hotels around tourist area in Japan.
Snow festival in Sapporo is pretty much largest tourist event in Hokkaido. Hotels around Sapporo will be booked well in advance.