It's not a particularly good deal IMO. I paid £1,500 AMS-LHR-NRT-FRA-LHR on BA and JL last year. I've seen London-Tokyo for £1,400 on Air China in the last 12 months, obviously no avios but no need to position to Budapest either.
flatlander put it best - this is a holiday that happens to come with a slug of tier points
I find western hotels in Japan to be overpriced and/or dated. My advice would be to stick to mid-market Japanese brands which will always be spotless and are quite a cultural experience.