Gaia Series 3 : New Wave of Hot Spring Resorts in Atami

This week, we shine the spotlight on Japan's hot spring resorts in Atami City, Shizuoka Prefecture. The first is the Hotel New Akao, which was built in 1971. An unprecedented and innovative method of construction was used, with piles driven into the sea. The result was a huge 20-storey building jutting out into the sea and the hotel became a landmark of Atami. However, the building is starting to age, the number of overnight guests has decreased, a typhoon in 2018 caused some damage and then COVID-19 struck. The hotel’s debt exceeded 10 billion yen and it closed its doors in 2021. 

Yoshihisa Nakano, Akao Spa and Resort’s CEO, has been tasked with reviving the fortunes of the hotel. He was appointed to the post two years ago and manages New Akao and the former Royal Wing, which is still open for business. We also meet Shohei Shitara, a long-time staff member who joined New Akao 16 years ago. He takes us on a tour of New Akao and we learn that Atami has various specialities, such as lemon, cheese, butter with herbs, terrine and even glass. We accompany Mr Shitara heads to a glass shop, where he and glassmaker Kenta Ohigashi discuss plans to collaborate on creating a new speciality product for Atami.

We managed to interview Mr Nakano in November last year to find out his plans for New Akao. In November, he broke the news to his employees that he has decided to sell the New Akao and the former Royal Wing to an American investment fund, the Fortress Investment Group. The hotel will be managed by MYSTAYS Hotel Management, a company under the Fortress Group. We speak to Shunsuke Yamamoto, chairman of MYSTAYS, which has 144 hotels throughout Japan. It is the fifth-largest hotel chain, with an annual turnover of 100 billion yen and about 7,000 staff. 

In February this year, Mr Yamamoto visited the New Akao and shared some of MYSTAYS’ plans for the hotel. Examples are a buffet for overnight guests and marine leisure activities such as kayaking and snorkelling, since the hotel is situated near the sea. The hotel’s name will remain as Hotel New Akao. 

Atami has been ranked the most popular hot spring resort for the last nine years consecutively. Many of the tourists are young people so when looking at the revitalisation of Atami, cafes, restaurants and products that look great on social media are key. The firework display has become Atami's most famous event, but most people do not stay overnight in hotels or ryokans when it finishes. 

While Akao Spa and Resorts’ Mr Nakano is in the process of reviving the New Akao, Mr Shitara and his team are planning a new accommodation facility at the remaining Akao site. They comprise a glass-fronted villa in the forest facing the sea and a dome-shaped structure. Both are planned for completion in 2027.

Another hotel worth highlighting is the Atami Pearl Star Hotel, which is located in a prime location, in front of a local tourist attraction, Kannichi Omiya Statue. The resort hotel opened in September 2022. The lobby has a modern Japanese style. It has a total of 87 guest rooms and its selling point is the spectacular view of Sagami Bay from its outdoor baths. 

Its General Manager is Masakazu Kurisu. He has used his network built up over many years as a hotelier to find the most capable chefs from famous hotels and restaurants. He hopes to attract tourists from countries such as China and collaborates with Hato Bus. Mr Kurisu meets up with Marina Yoshitomi from the Hato Bus Travel Business Dept. She plans day trip bus tours that start from Tokyo and has been looking for a restaurant where the customers on the tour can have lunch. Mr Kurisu aims to attract these customers on bus tours to visit the hotel’s facilities and possibly stay at the hotel. 

Tips:

1)    Lemon, cheese, butter with herbs and terrine are among the specialities of Atami
2)    The fireworks display is a popular attraction of Atami