Hospitality Sector

"While domestic tourism has seen some recovery, times are tough for the hotel industry, with increasing bankruptcies and delayed recovery due to new variants. However, opportunistic investors still see this as a chance to enter or expand into the Japanese hotel market."

"As more people get vaccinated, the return of travel demand is on the cards. Even so, considering the technical complexities in restarting global travel, and the uncertainties it brings, the path to normalcy is expected to be eventful. Nonetheless, this presents a great opportunity for well-prepared market participants."

"The current difficult circumstances serve as a strong catalyst for the emergence of new trends and distressed opportunities. There are numerous keen investors on the lookout for such distressed assets, and therefore opportunities are unlikely to be as abundant as one might hope."

"There is some hope for domestic tourism with increased funding from the “Go To” Travel campaign and extra savings from self-quarantine. Increasing bankruptcy fi gures and a substantially lower supply pipeline should prove favourable for operators who can weather the storm. "