Hyatt, Kiraku, and Takenaka Finalize 22 Billion Yen Fund for Luxury Onsen Ryokan Brand 'Atona'

What's Happening?

Hyatt Hotels Corporation, Kiraku, Inc., and Takenaka Corporation have announced the final close of the Atona Impact Fund, a real estate fund dedicated to investing in luxury onsen ryokans under the Atona brand. The fund, which has reached a total size of 22 billion yen (approximately 149 million US dollars), aims to enhance tourism assets in Japan by developing high-quality ryokans. Atona Co., Ltd., formed in 2022 as a joint venture between Kiraku and a Hyatt affiliate, focuses on creating modern luxury hot spring inns that offer authentic Japanese experiences with contemporary comforts. The fund has attracted investments from several entities, including MUFG Bank, Ltd., and Cool Japan Fund Inc.

Why It's Important?

The establishment of the Atona Impact Fund signifies a strategic investment in Japan's tourism sector, particularly in the luxury segment. By focusing on onsen ryokans, the fund aims to boost regional tourism and promote sustainable development. This initiative could enhance Japan's appeal to global travelers seeking unique cultural experiences, potentially increasing tourism revenue and supporting local economies. The collaboration between Hyatt and Kiraku leverages international hospitality expertise and regional business acumen, promising a blend of authenticity and modern luxury that could redefine the ryokan experience.

What's Next?

The Atona brand plans to expand its presence across Japan, with each property featuring onsen facilities, open kitchen restaurants, and wellness experiences. As the fund continues to invest in development projects, stakeholders may anticipate further announcements regarding new ryokan locations and partnerships. The focus on sustainable tourism and cultural preservation could attract interest from global travelers and investors alike, potentially leading to more collaborative ventures in the hospitality industry.