“Bringing Ever-More
Joy to Travel in Japan” With our hotels as a stepping off point, lets unlock more adventurous journeys in Japan.
Medium-to long-term stay-type apartment hotels that offer group accommodation are at the forefront of a new market in Japan.

Ningyocho, Nihombashi, Tokyo – a spring morning in 2023 brings light and energy to this town that blends scenes of modern urbanity and an old-time downtown atmosphere.

The lobby of the apartment hotel MIMARU SUITES Tokyo Nihombashi similarly comes to life as a steady stream of guests appear. In the air are voices in English, Chinese, Spanish, and other foreign languages, and occasionally, Japanese as well. People there may be family, or possibly groups of friends. From every corner of the world people come to stay at MIMARU SUITES here in Nihombashi, as well as in Tokyo and Kyoto, or at MIMARU in Tokyo, Kyoto, or Osaka.

Word-of-mouth sites are guests’ main source of information. In fact, one of the world’s largest travel platforms, TripAdvisor, listed three MIMARU locations as having been selected in their ranking of “Top 20 Hotels in Japan by International Travelers 2019.” This was an accomplishment that came a mere year and a half after the first hotel opened in 2018. Ever since, we have had a presence in these annual rankings.

Cosmos Initia of the Daiwa House Group is guiding growth in the hotel business, with Cosmos Hotel Management, a newly established subsidiary, tasked with running operations. Cosmos Initia’s core business areas are real estate sales, rental, and brokerage. How did a hotel launched by an outsider in a different field gain such a prestigious reputation?

The reason is that they challenged the conventional wisdom of the Japanese hotel industry to create the kind of hotel that meets the needs of international guests. Indeed, this is a pioneering new genre of urban-style apartment hotels described by its very name—MIMARU is a play on words, where “MI” comes from “minna” (everyone), and “MARU” is derived from “tomaru” (to stay), meaning “everyone stays together.” They even coined the term “apartment hotel” on their own.

Sometime around 2016, when the inbound market was gaining momentum, two employees were tasked with expanding into the hotel business. Those two, Sosaku Tanaka and Keitaro Kumano, are today members of Cosmos Hotel Management where they have gathered around them a team of project support staff.

Target guests are tourists from abroad, as there are more than a few families and groups visiting Japan on medium- and long-term trips. Despite that, in Japan, the mainstream hotel offerings are twin rooms; there are a lack of guest rooms that can accommodate multi-member groups staying together. This is where we saw the opportunity for success.

First, we determined the concept. Floor space would be approximately 40m². Occupancy would be from four guests per room, and each room would come with living, dining and kitchen areas. We had been thinking that operations would be outsourced, but every management company told us that we “had better not do this.” They advised, “Rather than one room of 40m², how about three rooms of 13m²?”

As Kumano, an architectural expert predicted, “I knew they would tell me it would be impossible.” This is an industry that had as its number one mission the securing of more rooms relative to square footage in order to increase revenue. Rather happily, “These people don’t compete as players.”

Tanaka also believed “This is our chance!” Based on experience, when all members give their thumbs up, on the contrary, that is a dangerous situation. The more deliberation on “Can it actually work?” the more value there is as innovation.

He also traveled abroad to talk to world-class luxury serviced apartment providers. There, he received strong words of encouragement, hearing “Japan needs this kind of property, so you should tackle it head on,” which deepened his confidence. Having determined that they would manage the operation themselves, they established the subsidiary company, Cosmos Hotel Management.

Room occupancy at MIMARU is from four guests, and depending on the location, up to 10 guests per room. Moreover, based on the idea of “wishing that a stay will be like living at home,” all rooms are designed with living and dining rooms, and a kitchen that comes standard equipped with cooking utensils and tableware.

The lead-off location of Tokyo Ueno also offers a “concept room.” Dreaming up this plan proved to be just plain fun, in fact, the architect in charge created the Japanese-style room with the vision of “no matter what, I want a sunken kotatsu table,” and there’s even an elevated Japanese-style alcove.

After that, each time a hotel was built, ideas were exchanged and guest rooms embodying a playful spirit created. The premium room in MIMARU Tokyo Ueno Okachimachi comes with a sushi counter where a sushi chef can be called up to prepare sushi as guests watch on. MIMARU Tokyo Ikebukuro features a gaming room where up to five people can play. Following on from that, Pokemon and Ninja-themed rooms, Ukiyoe rooms, and other creative concept rooms were announced one after another.

The concept rooms have been well received by Japanese guests as well, and this supported the shift to the domestic market on account of the COVID-19 pandemic, which caused the inbound market to instantly evaporate before our eyes. It was a tremendous shock. The number of foreign visitors to Japan, which was roughly 31.88 million in 2019, plunged by 99.5% to approximately 250,000* in 2021. Even then, though, it was only a matter of time until the light of dawn appeared.

In July 2021, we opened MIMARU SUITES as a new series that featured two or more bedrooms in all suite rooms. These rooms can be divided up between parents and children, or by males and females with groups of friends. This is a standard floor plan outside of Japan, and in fact, it was in high demand. However, the toilet is in a room by itself, separate from the bath room, thus incorporating the qualities of Japanese design into a world-standard guest room.

*Statistics from Japan National Tourism Organization (JNTO)’s “Visitor Arrivals to Japan”

Today, as we soar on a trajectory toward recovery in the inbound market, approximately 90% of our guests are from overseas. Welcoming them are a team of staff members from 25 countries and regions, with 84% of front desk staff being foreign nationals (as of March 2023). The heads of each hotel are also all foreign nationals in Tokyo.

When the launch was in its early stages, Tanaka, who oversaw hiring, recruited people from every corner of the world so that guests who arrived at the hotels would have no trouble communicating in their native languages. Guests who were on their first trip to Japan or traveling with kids could also feel at ease. For that reason as well, the ideal staff would be bilingual or even trilingual, being able to speak their mother tongue, English and Japanese.

No previous hotel work experience was required. Rather, the greatest emphasis was placed on mindset. Did they have an affinity for Japan? Did they hope to entertain guests who were seeking experiences not found in any guidebook?

We came up with the tagline, “Unlock Your Japan,” telling them “We want you to become like a trusted friend to guests, with whom you will work together to create ‘new journeys in Japan’.”

Foreign national staff have insights into the appeal of Japan that may escape Japanese people. One staff member was asked by a platinum credit card-holding guest about where to eat sushi, and while Tanaka stood by thinking “Introducing a high-end restaurant would be the likely call,” the response was “Conveyor belt sushi would be great fun.” The guest, upon returning to the hotel, laughed and said, “That was a blast!”

That’s exactly the point. To put smiles on the faces of our guests, let us be the ones to make Japan more interesting and transform domestic tourism, with our hotels as a stepping off point. In January 2023, approximately 1 in 50* foreign visitors to Japan stayed at MIMARU or MIMARU SUITES. That means there is immense room for growth. As the pioneer of the apartment hotel market, let’s aim to be No. 1. While headwinds will continue to blow, that wind is the very proof that we are on the frontlines, and that is why we are the first challengers to view what Japan can offer.

*Calculated with statistics from Japan National Tourism Organization (JNTO)’s “Visitor Arrivals to Japan” and guest numbers from MIMARU and MIMARU SUITES