Decrepit Japanese hotels? common? - Page 2

Grand Prince Hotel Akasaka to close next year due to economic downturn

The Grand Prince Hotel Akasaka located in central Tokyo will be closed at the end of March next year in the face of heavy competition.

The decision, made by Seibu Holdings, Inc., the owner of the Prince Hotel chain, was brought about both because of problems with aging buildings and difficulties turning profits because of intense competition in the hotel industry. Most of the buildings, including a 40-story one by the late architect Kenzo Tange, will face demolition. Future use of the lot is as yet undecided, but Seibu Group, the corporate firm behind Seibu Holdings, Inc., will hold onto the land and plans to develop it again.

The hotel originally opened for business in October of 1955, under the name "Akasaka Prince Hotel." With a lot of over 30,000 square meters, the hotel eventually came to include a 40-story new building, a 6-story annex and a banquet hall, in addition to the original 2-story building. Over its history, the hotel has served as a wedding hall for celebrities and a meeting place for politicians.

Nicknamed "Aka puri," the hotel has been filling its rooms at an average of about 80 percent capacity, the same as during the bubble years of the early 90s, but with foreign hotel brands making inroads into the market and price wars between hotels intensifying, the hotel has become unprofitable. A room that went for 24,000 yen in the "bubble" years now only goes for about 14,000 yen.

Although the hotel will be demolished, the original 2-story building is expected to be saved. After the hotel is removed, the land is expected to be redeveloped as a commercial complex that will house a shopping center, another hotel and other facilities.


(Mainichi Japan) May 2, 2010