How to Choose the Right Area for Your Accommodation Business in Tokyo's 23 Wards

The success of an accommodation business depends not only on the property itself but also heavily on the location. This article explains how to choose the right area in Tokyo's 23 wards and compares the market characteristics of key areas.

Key Factors for Area Selection

When selecting an area for accommodation business, focus on these four factors:

• Within 10 minutes walk from station: Good access is fundamental. Properties far from stations directly impact occupancy rates.
• Airport access: Areas with good access from Narita and Haneda airports are more likely to be chosen by international travelers.
• Inbound demand: The ability to attract foreign tourists varies greatly by area. The presence of sightseeing spots is crucial.
• License feasibility: Zoning and fire regulations differ by area, affecting the difficulty of obtaining a hotel business license.

Key Area Characteristics

Taito Ward (Ueno/Asakusa Area)

Tokyo's premier tourist area with international recognition and stable accommodation demand. Good access to Ueno Park, Sensoji Temple, and Sky Tree. However, competition is fierce and property prices are high.

Sumida Ward (Oshiage/Kinshicho Area)

A growing area centered around Tokyo Sky Tree. Recent redevelopment has increased accommodation demand. Good access to Asakusa with relatively lower property prices compared to Taito Ward.

Katsushika Ward

An area with relatively low property prices and high growth potential. Despite good access to Ueno and Asakusa, initial investment can be kept lower. Family and long-stay guest demand is also expected.

Market Comparison by Area

Kaisei's Perspective

Kaisei focuses particularly on Tokyo's eastern wards (Taito, Sumida, Katsushika). These areas offer an excellent balance of inbound tourist accessibility and growth potential. For those just starting an accommodation business, we recommend entering growth areas like Katsushika before competition intensifies.

Summary

• Area selection is a critical factor for accommodation business success
• Focus on 4 factors: station access, airport access, inbound demand, license feasibility
• Tokyo's eastern wards offer the best balance
• Early entry into growth areas is recommended to avoid intense competition