Hyatt, Kiraku complete first funding for ryokan brand

CHICAGO, TOKYO – Hyatt Hotels Corp. and Kiraku Inc. have announced that the first three Atona ryokans will open in Japan in 2026 and stated that its first Atona Impact Fund had closed, securing an initial $64 million to actively invest in Atona ryokan development projects.

First round investors include affiliates of Hyatt and Kiraku, as well as Japanese construction firm Takenaka Corp. Kiraku and Takenaka have already partnered to restore a heritage sake brewery in Nagano. Kiraku operates from bases in Kyoto and Tokyo, overseeing projects across Japan.

The fund is aiming for a final target of $128 million. Amidst a recovering tourism market and growing interest in regional travel in Japan, the fund will invest in unique and untapped quality assets, and ultimately contribute to enhancing the long-term value of regional areas of Japan.

The first Atona hot springs ryokans will open in Yufu, Yakushima and Hakone, Japan. Properties will typically have 30 to 50 guestrooms and will feature restaurants with open kitchens and bars showcasing seasonal ingredients.

The Atona brand (a combination of two old Japanese words that means ‘me and you’) was announced in 2022 under a joint venture between a Hyatt affiliate and Kiraku, “a Japanese company dedicated to preserving valuable assets for future generations.”

“This collaboration enables us to leverage Hyatt’s global expertise to deliver high operational efficiency and exceptional guest experience and focus on long-term capital appreciation and substantial investor returns,” said Kou Sundberg, founder and chief executive officer of Kiraku.

“With Kiraku’s expertise in deal sourcing, asset management and business development, the Atona brand is poised to meet the rising demand for high-end ryokans,” said Sam Sakamura, Hyatt’s vice president, Japan and Micronesia.

Atona Chief Operating Officer Satoshi Watanabe will lead a management team who have a deep understanding of Japanese culture.

The Atona brand will be a core addition to Hyatt’s global portfolio and the first brand in the Hyatt portfolio to originate from Japan.

According to the Japan National Tourism Organization, Japan welcomed a record level of nearly 32 million international visitors in 2019 and aims to increase by 60 million visitors by 2030. Moreover, from 2016 to 2019, there was a 45% surge in the number of international visitors to regional areas of Japan, surpassing the 19% increase seen in visits to the three major metropolitan areas of Tokyo, Osaka, and Nagoya.