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Global | Luxury brands Opening One After Another, What are the Reasons Other Unrelated Industries Are Looking to Hotel Businesses?

Sep 18, 2018.Tokyo, JP
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Palazzo Versace Dubai

This year in June, Japanese retail company MUJI that offers a wide variety of lifestyle goods opened its namesake MUJI HOTEL in Beijing, China within a local trendy shopping district called "Beijing Fang" (Beijing square). Being in the center of a cultural and historical area, the hotel with it’s simple yet sophisticated design has attracted many and the company plans to open its first hotel in Japan in Ginza, Tokyo in March next year as its third installment.


In recent years, many companies having a different background in industry have entered the hotel business through savvy product planning within the lifestyle category, even apparel enterprises such as stripe international has expanded into the lifestyle business, has their very own Hotel Koe Tokyo.

In Japan where the inbound business is flourishing, the means of creating contacts with overseas customers has come with a sense of urgency. Although costs are expensive, many companies consider the hotel business as one of its effective solutions. Starting a hotel business and seeking out a favorable business environment proves risky, but brands offering safe and simple quality products such as MUJI has acquired a level of global awareness with an effective result.

Luxury brands are ahead of the development of hotel business where they utilize their brand power.

Giorgio Armani for example opened the Armani Hotel Dubai and in the following year, Armani Hotel Milano. Bvlgari too has expanded its BVLGARI HOTELS & RESORTS business in four cities starting with Milan in 2004, then Paris, London, Shanghai, and in Dubai this year. In 2020, another will open in Moscow and Paris and in 2022 Tokyo too.

Palazzo Versace hotel operated by none other than Italian luxury brand, VERSACE opened its grand palace in the Gold Coast in 2000, and in 2015 had constructed it’s 2nd in Dubai.

Palazzo Versace Dubai

There also seem to be many cases of luxury family owned hotels diversified in the management of hotel businesses such as the Ferragamo family’s Lungarno Collection that offers a stylish group of intimate design hotels in heart of Florence and Rome. Maison Moschino owned by Moschino in Milan is a whimsical boutique hotel housed in an 1840's neoclassical railway station.

The hotel is undeniably the most of what a lifestyle business can offer. The brand’s image and world can be easily understood, making it cohesive to customer engagements. A typical example marketing methods in a hotel is by providing amenities from beauty companies.

There are no luxury brands in Japan, but with the backbone of worldwide brand power like MUJI and reliability associated with “made in Japan", the number of companies that will embark on hotel businesses will increase more and more. The birth of a "UNIQLO hotel" may be sooner than we think.