Howard Hotels Group Partners with JR East Hotels

To expand its efforts to attract Japanese guests and increase occupancy rates, Howard Hotels Group, which has established a presence in the market for 35 years, signed an agreement on the 21st with Masayuki Satomi, Chairman and President of JR East Hotels in Toshima, Tokyo, Japan. The agreement was signed by Howard Hotels Group Chairman Hui-Ming Liao. The two parties will share marketing and business resources, talent and management know-how, as well as provide reciprocal membership benefits, with the aim of jointly developing the market and increasing their market share.

Last year, the number of Taiwanese travelers visiting Japan reached 4.6 million, while approximately 2 million Japanese tourists visited Taiwan. Taiwan and Japan are therefore among each other's most important source markets. The strategic alliance between Howard Hotels Group and JR East Hotels is consequently of significant strategic importance, with the scope of their cooperation, exchange, and resource sharing offering valuable insights for others in the hospitality industry.

Howard Hotels Group President Tung-Han Liao stated that Japanese guests currently account for approximately 15% of the group's clientele. Following the alliance with JR East Hotels, the group hopes to gradually increase the proportion of Japanese guests to 30%–40%. Liao also revealed that through its cooperation with JR East Hotels, Howard Hotels Group hopes to expand into Japan by investing in and operating affordable hotels, thereby expanding the group's overall business scale.

Liao further explained that small and medium-sized business hotels in Japan primarily serve local business travelers. If Howard Hotels Group enters the Japanese market by establishing hotels with approximately 100 rooms each, it plans to broaden its customer base and serve international travelers, including visitors from Taiwan and mainland China.

Howard Hotels Group currently operates two major brands, Howard Hotels and Forte Hotel Group, with 20 locations across Taiwan. Its portfolio covers urban business hotels, leisure resorts, and affordable business hotels, with more than 3,200 guest rooms in total. JR East Hotels, part of the JR Group, Japan's largest railway group, operates a network of hotels primarily centered in eastern Japan. It currently has 48 hotels, with its network continuing to expand.

Liao stated that Howard Hotels Group hopes to continue expanding its presence domestically. However, rents for properties offered by life insurance companies are too high, while the tourism hotel market is facing a challenging business environment and intense competition. "Unless rental costs account for no more than 25% of revenue, it is extremely difficult to achieve profitability." Therefore, Howard Hotels Group is seeking to internationalize its operations, with Tokyo serving as its first strategic foothold for entering the Japanese market.

News Source: China Times