Banyan Group Expands Its Footprint In Japan, Fueling Tourism Growth With A Million Investment

Published on November 13, 2025

The hospitality titan Banyan Group, located in Singapore, has disclosed its intention to pour a significant amount of 130 million USD into the hotel industry of Japan, targeting the country’s prosperous tourism market, which is getting bigger. This capital will mainly be allocated to the revamping and modernization of hotels and traditional inns throughout Japan, thus raising the country’s profile as a luxury travel destination.

Expanding Reach: Banyan Group’s Strategic Investment

Banyan Group has committed to a major expansion strategy in Japan, one of Asia’s most attractive tourism markets. With the Japanese tourism industry rebounding strongly post-pandemic, the company is strategically placing itself to cater to an influx of international visitors who are increasingly seeking high-end, immersive travel experiences.

The company’s first foray into Japan began in August 2024 with the opening of Banyan Tree Higashiyama Kyoto, a luxury hotel located in the culturally rich city of Kyoto. This flagship property offers 52 elegantly designed rooms, a serene Banyan Tree Spa, natural Onsen facilities and two exquisite dining venues. The introduction of this upscale brand has bolstered Banyan Group’s foothold in the country, setting the stage for further expansion.

In total, Banyan Group now operates eight hotels across Japan under five distinct brands: Banyan Tree, Garrya, Dhawa, Folio and Homm. This wide-ranging portfolio reflects the company’s diverse offerings, ranging from ultra-luxury accommodations to more accessible options catering to different types of travellers.

Revitalising Traditional Inns: A Nod to Japan’s Heritage

Part of the new investment fund will focus on revitalising Japan’s iconic ryokan (traditional inns), which are an integral part of the country’s rich hospitality tradition. By restoring and upgrading these historic inns, Banyan Group seeks to blend authentic Japanese experiences with world-class luxury. This approach not only preserves Japan’s cultural heritage but also presents an opportunity for visitors to experience a more traditional side of the country while enjoying the comforts and services that the Banyan Group is known for.

The renovation of ryokan properties will also provide a unique opportunity for Banyan Group to showcase its sustainable hospitality practices, an area the company has long championed. By enhancing the environmental sustainability of these inns, Banyan Group aims to attract eco-conscious travellers and support Japan’s green tourism initiatives.

Impact on Japan’s Hotel Tourism Industry

The Japanese hotel industry has seen rapid growth in recent years, with international visitor numbers rising year after year. According to Japan’s National Tourism Organisation, inbound tourism has been a major driver of Japan’s economic recovery, and 2024 marked a record high for foreign visitors to the country. With this increased interest, the hospitality sector faces growing demand for high-quality accommodation that provides both luxury and authenticity.

Banyan Group’s expansion is poised to capitalise on this surge in demand by offering a variety of luxury experiences to a broad spectrum of international travellers. By investing in the rejuvenation of historic properties and introducing new luxury hotels, Banyan Group not only enhances the appeal of individual destinations like Kyoto but also elevates Japan’s standing in the global luxury tourism market.

This investment will also likely encourage further development in the Japanese tourism sector, as other international hospitality groups may follow Banyan Group’s lead, potentially sparking competition and innovation in the luxury segment. The strategic placement of Banyan Group’s hotels across Japan’s most sought-after destinations promises to boost local economies, creating new jobs and fostering tourism-driven growth.

Future Plans: A Vision for Sustainable Tourism

Looking ahead, Banyan Group remains committed to expanding its portfolio in Japan, with further acquisitions and new property openings slated for the coming years. The group’s vision aligns closely with Japan’s evolving tourism strategies, which are increasingly focused on sustainability and responsible tourism. The investment in eco-friendly technologies, combined with the preservation of traditional Japanese inns, highlights the group’s commitment to integrating modern luxury with environmental mindfulness.

By diversifying its offerings and incorporating local culture into its designs, Banyan Group is making substantial strides in redefining luxury travel in Japan. The company’s focus on both contemporary and traditional experiences positions it well to attract a diverse clientele, including affluent tourists, cultural enthusiasts, and eco-conscious travellers.

Shaping Japan’s Tourism Landscape

Banyan Group’s 30 million USD investment marks a pivotal moment for Japan’s hospitality industry. With its focus on revitalising both traditional ryokan and modern luxury hotels, the company is playing a key role in enhancing Japan’s appeal as a prime destination for luxury travel. The opening of properties like Banyan Tree Higashiyama Kyoto serves as a benchmark for the type of high-end experiences expected to draw international tourists in the years to come.

Banyan Group’s adding new locations in Japan already indicates the firm’s investment having a major influence on the country’s tourism sector. Through mixing the most appealing aspects of Japan’s amazing past with opulence and eco-responsibility, Banyan Group is making a historical change in Japan’s hotel tourism sector.

Image Credit: Banyan Group