Companies

15 Hotel Operators in Tokyo to Get Warning from Antitrust Watchdog JFTC for Sharing Room Rate Information

Yomiuri Shimbun file photo
The Japan Fair Trade Commission

The Yomiuri Shimbun

15:55 JST, April 17, 2025

The Japan Fair Trade Commission is set to issue a warning to 15 companies operating well-known hotels in Tokyo, including the Imperial Hotel in Chiyoda Ward, and will inform them that their sharing of information related to room rates could lead to a price cartel in violation of the Antimonopoly Law, The Yomiuri Shimbun has learned. The antitrust watchdog is expected to urge the firms to avoid engaging in such behavior in the future.

The firms’ discussions may have affected nightly rates, with prices already soaring due to an increase in foreign visitors to Japan, according to the JFTC.

The 14 other firms include the operators of the Okura Tokyo in Minato Ward, Hotel New Otani Tokyo in Chiyoda Ward and Hyatt Regency Tokyo in Shinjuku Ward.

According to sources, representatives from the 15 companies held monthly meetings in Tokyo where they shared information related to their hotel operations, including room occupancy rates, average room rates and future pricing plans.

JFTC investigations did not confirm any clear cartel activities, such as across-the-board increases to pricing, but at least one firm set room rates based on information from other companies.

The JFTC is believed to have determined that such information sharing could lead to a cartel on accommodation rates, and that a warning needed to be issued as quickly as possible to rectify the situation.

The hotel industry has seen a recovery in demand thanks to a rebound in overnight trips after the COVID-19 pandemic. Last year saw a record high of about 650 stays at hotels and other accommodations in Japan. Nightly rates have been pushed up by a stronger demand for accommodations due to an increase in foreign and Japanese visitors, as well as by inflation.

The 15 companies have already stopped holding the meetings and exchanging information. “We did not exchange information with intent to engage in unfair trade practices. We will continue to fully cooperate with the investigation,” said a representative for the Imperial Hotel.