In the Tenjin Big Bang project, a redevelopment project underway in the Tenjin district in central Fukuoka City, the opening of Kyushu’s first five-star hotel in 2023 has become a hot topic.
The Ritz-Carlton Fukuoka opened by the foreign hotel chain Marriott International. This is the sixth location in Japan and the first in Kyushu. Right next door is the well-known Nishitetsu Grand Hotel, but Koichi Hayashida, president of Nishinihon Railway (Nishitetsu), declared that “to be frank, it has no effect on customer traffic.”The target group is different, and there will be no competition. This is because I see it as such. We also hope for synergistic effects, such as the entourage of VIPs staying at the Ritz-Carlton staying at the Nishitetsu Grand.
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Nishitetsu Grand Hotel photographed in November 2019.Three and a half years later, “The Ritz-Carlton Fukuoka” opened on the right.
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In 2024, the Nishitetsu Hotel Group will celebrate its 55th anniversary.From left: Nishitetsu President Koichi Hayashida, subsidiary Nishitetsu Hotels President Tatsuya Toyofuku
Minimum 100,000 yen vs 14,444 yen
The Ritz-Carlton will occupy the upper floors of Fukuoka Daimyo Garden City, a 25-story mixed-use building built as part of the Tenjin Big Bang project. It opened on June 21st. Until now, it has been pointed out that Fukuoka City lacks foreign luxury hotels. The G20 summit, which was held for the first time in Japan in 2019, was considered likely to be held in Fukuoka, but in the end it was held in Osaka (the finance ministers’ meeting was held in Fukuoka). The lack of hotel capacity and the lack of “5-star” hotels are believed to have been a bottleneck.
At a business strategy briefing session held by Nishitetsu in Tokyo on November 20, Mr. Hayashida was asked about the relationship with the Ritz-Carlton.
“(The Ritz-Carlton) charges a room fee of at least 100,000 yen, so the target is completely different. It’s different, so to be honest, it doesn’t affect us at all.”
He explained. According to the Nishitetsu Public Relations Department, the average room price at Nishitetsu Grand in October 2023 was 14,444 yen, which is a big difference from the Ritz-Carlton. The occupancy rate is strong at 83.4%.
Nishitetsu Grand opened as a result of the development of Tenjin after the war. Nishitetsu’s “110th Anniversary Commemorative Magazine” (2018) includes the following description:
“With the increase in offices, convention facilities, and cultural facilities, the demand for a full-fledged hotel in the Tenjin area was increasing day by day.Nishitetsu opened Fukuoka City’s first full-fledged city hotel on April 21, 1969. The following May, the Hakata Tokyu Hotel, Tokyu Group’s first foray into Kyushu, opened at Mainichi Fukuoka Kaikan, marking the opening of a full-fledged hotel on the east and west ends of Tenjin. It was a need.”
By inviting international conferences, “people who would not have come before can come”
Mr. Hayashida also said, “They have a strong history, so they have a lot of regular customers…” and added that the increase in repeat customers and the nationwide rise in room prices have had a positive effect, “In fact, it’s been a positive influence.” “We are doing so.”
He also expressed hope that if the opening of the Ritz-Carlton succeeds in attracting international conferences, Nishitetsu Grand will become a venue for them.
“People who have not come before are now coming, and many people accompanying them are also coming.Of course, there will also be a lot of people from overseas press (organisations). Since the hotel has a wide selection of Shochiku and Ume products (editor’s note: Nishitetsu has multiple brands such as Solaria and Croom), I think they will be able to adequately respond to the demand and expect demand…There will only be positive effects. ”
Mr. Hayashida said that Nishitetsu Grand’s customers have said that 55 years have passed since its opening, and that the building has become more dignified.
“With clear differentiation, I think they will continue to play a role as valuable entities.”
I said.
The opening of Fukuoka Daimyo Garden City is part of Fukuoka City’s redevelopment project on the former Daimyo Koji site. The deal was made possible by a corporate group consisting of Sekisui House, Nishitetsu, Mitsubishi Estate, Seibu Gas, Nishinippon Shimbun, and others that obtained preferential negotiation rights. Therefore, the success of Fukuoka Daimyo Garden City, where The Ritz-Carlton is located, can also lead to profits for Nishitetsu.
(Hiroshi Kudo, J-CAST News Editorial Department)
2023-11-25 05:00:00
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