Japan hotels keep luring Hong Kong families, global investors despite geopolitical strains

For Hong Kong’s Topaz Family Office, investing in hotels in Japan holds up as a sound decision even as a Middle East war clouds the macroeconomic environment.The wealth manager has made Japan a central plank of its pivot into hospitality and real estate over the past two years, driven by a sharp post-pandemic tourism rebound. The investment thesis now looks increasingly robust thanks to multiple structural tailwinds and a growing pool of institutional capital flowing into the same trade.“Japan hotels still make sense, even under wars and geopolitical tensions,” said Derek Cheung, chief marketing officer and co-head of alternative investments at Topaz. “I see Japan as a safe gateway for capital.”Cheung highlighted strong tourism demand and a limited supply of accommodation in the country. Japan had seen a record-high and resilient base of inbound visitors thanks to exceptional spending power and an “affordability boost” owing to the weak yen, he said, adding that even a drop in visits by mainland Chinese tourists amid political tensions did not alter the trend.“At the same time, supply remains structurally constrained by licensing requirements, labour shortages and higher construction and material costs, meaning new hotel supply is not keeping pace with demand,” he said.Japan welcomed a record 42.7 million international visitors last year, up 15.7 per cent from 2024, despite the lower arrivals from China, according to official data. Inbound travel spending also hit a record 9.5 trillion yen (US$60 billion) in 2025, with accommodation the largest category at 37 per cent, preliminary figures from the Japan-tourism-agency" class="entity-link entity-organization" data-entity-id="18242" data-entity-type="organization">Japan Tourism Agency showed.