Originally Posted by Nagasaki Joe

The truth is there is not a huge demand for luxury hotels in Kyoto because it is a major tourist city in a country where most of the tourists are Japanese who travel in large groups and are accommodated at a relatively low price in hotels and Ryokan that cater to these groups. I would say that foreigners are driving the slowly expanding luxury market, but Japanese (especially student and company groups) are still the largest tourist segment. Low demand is probably why the Park Hyatt Kyoto has so few rooms, but it will be a welcome addition to the luxury segment.