Japan tourism firm HIS Group upgrades amenities for Henn na Hotel chain

Innovative Japanese travel firm HIS Group seeks to shift the focus of its unique hotel chain with a slate of upgraded amenities.

Currently, HIS Group operates more than 40 lodging facilities in Japan and abroad, specifically through its tech-centric and quirky Henn na Hotel chain. The chain is known for its use of robotic technology and holograms for checking guests in or out at reception desks without need for human intervention.

Under the new scheme, Henn na Hotel’s branches in Kyoto, Sendai, and the Asakusa district of Tokyo will be equipped with upgraded amenities, including larger televisions.

Through this, HIS Group hopes to boost its average daily rate by as much as 30 percent.

HIS Hotel Holdings senior executive Manabu Shimizu remarked that, before the pandemic, the company focused on increasing the number of its hotels in order to raise sales. Now, though, the company aims to improve its overall profitability.

The slow road to recovery

In April of this year, HIS reported that the average daily rate (ADR) for its domestic hotels came to around JPY13,457, up 10 percent from where it was during the 2019 fiscal year.

However, the HIS Group’s finances are still struggling to bounce back from the impact of the pandemic. As of 30 April 2024, the company’s capital ratio remains at 12 percent.

HIS has, nevertheless, sought to diversify its operations, specifically with regard to its hospitality arm. Indeed, in the past fiscal year, the company’s hotel segment made up for 30 percent of its overall operating profit.