Blab Business
Hoshino Resorts Expands into Budget-Style City Hotels with New OMO Brand
In 1914, a small ryokan in the Japanese countryside set the stage for what would become Hoshino Resorts, a company that has blended traditional Japanese hospitality with modern design for more than a century. The latest chapter in that story began in 2018, when the group launched OMO, a brand aimed squarely at the city‑center business traveler.
The first OMO property, OMO7 Asahikawa, opened its doors on April 28 2018. From the moment guests stepped into the lobby, the hotel’s sleek, compact rooms spoke of a deliberate departure from the utilitarian spaces that typify Japan’s conventional business hotels. According to the company’s press releases, OMO rooms can be booked for as little as £33 per person per night—a rate that falls below the typical 6,000–12,000 yen range of nearby train‑station hotels.
Hoshino Resorts’ portfolio has long spanned the spectrum from luxury to budget. The flagship Hoshinoya line features ryokan with onsen, tatami mats, and a high‑end aesthetic in destinations such as Karuizawa and Kyoto. Other brands—KAI, which emphasizes regional charm, and RISONARE, which delivers modern comfort—illustrate the group’s commitment to diversity. CEO Yoshiharu Hoshino, a fourth‑generation leader who rebranded the company in 1995, has guided its expansion across Japan and Asia while maintaining an asset‑light model that allows rapid adaptation to market trends.
OMO represents a calculated pivot toward the business‑hotel segment. In Japan, business hotels are typically small, functional rooms near train stations, designed for salarymen and other travelers on tight corporate budgets. By offering stylish interiors and a central location, OMO seeks to attract the same demographic while delivering an upscale experience that feels both fresh and familiar.
The brand’s debut also echoes broader shifts in the Japanese hospitality sector. In recent years, there has been a concerted effort to democratize high‑design accommodations, a trend evidenced by OMO’s opening of two city‑center hotels that target travelers willing to pay a premium for style but not the full price of a luxury ryokan. Industry observers note that the success of OMO could spur additional city‑center launches, expanding the group’s reach into markets that have traditionally favored low‑cost options.
While Hoshino Resorts has long been synonymous with luxury ryokan, the move into budget‑style city hotels signals a diversification strategy aimed at capturing a larger share of domestic travel. The brand’s pricing and design approach may also appeal to international visitors seeking an authentic Japanese experience without the high cost of a traditional ryokan.
As of 2026, Hoshino Resorts operates 53 properties across Japan and overseas, including the Hoshinoya Tokyo—an upscale ryokan tower near Tokyo Station—and the OMO7 Asahikawa, a city‑center hotel that exemplifies the brand’s new direction. The company has not announced further OMO openings, but analysts point to the brand’s performance as a potential catalyst for future city‑center expansions.
In sum, Hoshino Resorts’ OMO brand marks a strategic expansion into the budget‑hotel segment, offering high‑design rooms at a price point that competes with traditional business hotels. The brand’s launch in 2018 and its focus on city tourism reflect the company’s broader goal of blending local charm with modern hospitality across a range of price points.
The first OMO property, OMO7 Asahikawa, opened its doors on April 28 2018. From the moment guests stepped into the lobby, the hotel’s sleek, compact rooms spoke of a deliberate departure from the utilitarian spaces that typify Japan’s conventional business hotels. According to the company’s press releases, OMO rooms can be booked for as little as £33 per person per night—a rate that falls below the typical 6,000–12,000 yen range of nearby train‑station hotels.
Hoshino Resorts’ portfolio has long spanned the spectrum from luxury to budget. The flagship Hoshinoya line features ryokan with onsen, tatami mats, and a high‑end aesthetic in destinations such as Karuizawa and Kyoto. Other brands—KAI, which emphasizes regional charm, and RISONARE, which delivers modern comfort—illustrate the group’s commitment to diversity. CEO Yoshiharu Hoshino, a fourth‑generation leader who rebranded the company in 1995, has guided its expansion across Japan and Asia while maintaining an asset‑light model that allows rapid adaptation to market trends.
OMO represents a calculated pivot toward the business‑hotel segment. In Japan, business hotels are typically small, functional rooms near train stations, designed for salarymen and other travelers on tight corporate budgets. By offering stylish interiors and a central location, OMO seeks to attract the same demographic while delivering an upscale experience that feels both fresh and familiar.
The brand’s debut also echoes broader shifts in the Japanese hospitality sector. In recent years, there has been a concerted effort to democratize high‑design accommodations, a trend evidenced by OMO’s opening of two city‑center hotels that target travelers willing to pay a premium for style but not the full price of a luxury ryokan. Industry observers note that the success of OMO could spur additional city‑center launches, expanding the group’s reach into markets that have traditionally favored low‑cost options.
While Hoshino Resorts has long been synonymous with luxury ryokan, the move into budget‑style city hotels signals a diversification strategy aimed at capturing a larger share of domestic travel. The brand’s pricing and design approach may also appeal to international visitors seeking an authentic Japanese experience without the high cost of a traditional ryokan.
As of 2026, Hoshino Resorts operates 53 properties across Japan and overseas, including the Hoshinoya Tokyo—an upscale ryokan tower near Tokyo Station—and the OMO7 Asahikawa, a city‑center hotel that exemplifies the brand’s new direction. The company has not announced further OMO openings, but analysts point to the brand’s performance as a potential catalyst for future city‑center expansions.
In sum, Hoshino Resorts’ OMO brand marks a strategic expansion into the budget‑hotel segment, offering high‑design rooms at a price point that competes with traditional business hotels. The brand’s launch in 2018 and its focus on city tourism reflect the company’s broader goal of blending local charm with modern hospitality across a range of price points.
