Japan hotels keep luring Hong Kong families, global investors despite geopolitical strains

For Hong Kong’s Topaz Family Office, investing in hotels in Japan holds up as a sound decision even as a Middle East war clouds the macroeconomic environment.

The wealth manager has made Japan a central plank of its pivot into hospitality and real estate over the past two years, driven by a sharp post-pandemic tourism rebound. The investment thesis now looks increasingly robust thanks to multiple structural tailwinds and a growing pool of institutional capital flowing into the same trade.

“Japan hotels still make sense, even under wars and geopolitical tensions,” said Derek Cheung, chief marketing officer and co-head of alternative investments at Topaz. “I see Japan as a safe gateway for capital.”

Cheung highlighted strong tourism demand and a limited supply of accommodation in the country. Japan had seen a record-high and resilient base of inbound visitors thanks to exceptional spending power and an “affordability boost” owing to the weak yen, he said, adding that even a drop in visits by mainland Chinese tourists amid political tensions did not alter the trend.