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Whenever you plan a trip, where you stay ends up making a big difference. Japan is no exception. Location, access to the station, comfort, cleanliness – these are the usual things travelers look for when choosing accommodation.

Hotels are, of course, the straightforward choice. But in Japan, there’s another option that’s just as common and perhaps even more memorable: the ryokan (旅館), a traditional inn that has welcomed guests for centuries. Staying in one isn’t just about having a place to sleep. It’s about stepping into a living piece of Japanese culture.

The question is, which one should you choose? Many assume hotels are the safer, more convenient option, while ryokan are more of a cultural experience on the side. And while there’s some truth to that, the reality is a little more nuanced.

Ryokans vs. hotels: the data

It’s no secret: Japan is packed with tourists. Visitor numbers are higher than ever, and with domestic travel thriving too, the country’s accommodation industry is in full swing.

According to the Ministry of Tourism, overnight stays in May 2025 hit 56.38 million, a 3.7% increase from the year before. Japanese travelers made up about 40.66 million of those stays, while foreign visitors accounted for 15.72 million. But where are all these people actually spending the night? Data shows occupancy rates of 56.7% for business hotels, 50.1% for city hotels, 43.4% for resort hotels, and 33.1% for ryokan.

And the sheer scale of the industry is clear in the numbers. According to the Ministry of Health, Labour and Welfare, Japan had 51,038 hotels and ryokan as of March 2024. These totals mirror changes in the Ryokan Business Act, which merged previously separate categories. Before the 2018 revision, there were 10,402 hotels and 38,622 ryokan.

It’s also a hugely profitable sector. The Leisure White Paper 2024 reports that in 2023, the combined hotel and ryokan market reached ¥3.81 trillion, with hotels leading the way at ¥2.383 trillion.

In Japan, travelers have a wide range of choices. You might opt for a sleek international hotel chain, or instead check into a centuries-old ryokan steeped in tradition. Both are comfortable, but the experiences they offer are worlds apart. The next sections will take a closer look at what sets them apart.

The hotel scene

So, what’s the story of hotels in Japan?

Unlike ryokan, hotels as we know them today were a foreign import. After more than two centuries of isolation, Japan opened its ports in the 1850s, most famously when U.S. Commodore Matthew Perry sailed into Yokohama. With foreign diplomats and merchants suddenly arriving, the need for Western-style lodgings quickly became clear. The first, the Yokohama Hotel, opened in 1860.

Soon after, the Tokugawa shogunate backed new projects, including the Tsukiji Hotel in 1868. Still, hotels spread slowly. It wasn’t until the Imperial Hotel opened in 1890 that Japan had a landmark property of international scale.

The real turning point came decades later, when the 1964 Tokyo Olympics and the launch of the Shinkansen triggered a hotel construction boom. That same year, the Tokyo Hilton became the first foreign-owned hotel in Japan.

From those early beginnings, Japan’s hotel industry has grown into a highly varied landscape. City hotels and business hotels dominate urban centers. City hotels are bigger and pricier, offering banquet halls, gyms, pools, and concierge services. Business hotels are their leaner cousins: compact rooms, self-check-in kiosks, coin laundries, and vending machines. Everything you need, nothing you don’t.

Beyond the cities, resort hotels thrive in leisure destinations, with spas, entertainment, and family-friendly perks. And demand is strong: between October 2021 and 2022, city hotels added 834 rooms, bringing the total to 195,019 rooms across 1,162 facilities – a sign that travelers are increasingly leaning toward stays that mix comfort with leisure.

But growth comes at a price – literally. A 2022 Metro Engines Co., Ltd. report found that hotel rates in Tokyo jumped 66% year-on-year, while Yokohama’s average nightly price is now brushing against the ¥10,000 mark. Even business hotels, once the budget traveler’s safe bet, are no longer guaranteed cheap.

Still, Japan’s hotels have one major strength: variety. From Western-style comfort to quick stopovers or full-on resort escapes, there’s a hotel to match nearly every kind of traveler. Different in scale and service, but all sharing the familiar ease that keeps guests coming back.

The ryokan way

While hotels chase growth and higher prices, ryokan move to a different rhythm. Their path is slower, more fragmented, and shaped as much by tradition as by necessity.

Ryokan trace their roots back to the Edo-period hatago, inns that fed and sheltered travelers across Japan. Though they’ve evolved over the centuries, they still reflect a unique layer of Japanese culture, philosophy, and aesthetics.

What sets them apart? For one, the atmosphere. Rooms are laid with tatami mats, separated by sliding shoji doors, and prepared with futons each evening. Guests slip into yukata robes and geta sandals, while meals arrive as elaborate multi-course kaiseki dinners showcasing seasonal flavors.

Most ryokan also feature their own onsen baths, where soaking in mineral-rich waters is part of the daily ritual. The wooden interiors, quiet gardens, and natural surroundings create an atmosphere that feels timeless.

These inns are usually low-rise buildings, designed to harmonize with their surroundings. The architecture, the rituals of meals and baths, even the pace of the day – all aim to align guests with nature’s rhythms. Unlike hotels, where the room is yours alone, staying at a ryokan feels shared: with the other bath-goers, with the hosts, and with the natural world just outside.

But the picture isn’t all romantic. Ryokan numbers are shrinking. Between October 2021 and June 2022, they fell from 241,498 rooms (13,829 facilities) to 240,141 rooms (13,788 facilities), a 0.56% year-on-year drop. Tradition alone isn’t enough to keep pace with modern travel demands.

To survive, many ryokan are adapting. Online booking platforms, Wi-Fi, English-speaking staff, and flexible dining options may seem small, but they make a world of difference. These changes don’t erase tradition; they allow it to endure. The ryokan’s essence remains intact, even as it evolves to stay relevant in Japan’s crowded accommodation scene.

Ryokans vs. hotels and the essence of omotenashi

Ultimately, the choice between modern hotels and traditional ryokan comes down to what each traveler values most. Ryokan offer an experience deeply rooted in Japanese culture, while even Japan’s modern hotels carry a distinctive local touch. That touch often comes from omotenashi.

Omotenashi goes beyond simple hospitality. Originating from the Japanese verb “to entertain,” it’s about thoughtfulness and care – anticipating needs and creating a connection without intruding.

In a ryokan, this might show up as attentive, personalized service. In hotels, it can appear in small gestures like complimentary toiletries, a neatly arranged room, or other thoughtful extras. The magic lies not in the act itself, but in the care behind it – and in Japan, most accommodations aim to offer it.

As the lodging scene evolves, travelers can choose based on experience or convenience. Hotels compete with cutting-edge amenities and efficient services, while ryokan balance tradition with subtle updates, preserving their unique appeal while trying to stay relevant.

Although the paths are different, both share a common thread: thoughtful anticipation of guests’ needs, which makes every stay feel that much more personal.

Sources

【報道発表資料の一部訂正】宿泊旅行統計調査　国土交通省観光庁

日本全国ホテル展開状況（2022年6月現在）Hotel Bank

日本のホテルの始まりは？ホテル業界の成り立ち　Hotel Biz

ホテル・旅館の施設数、２４年３月末５万１０３８施設、前年比１．４％増、４年ぶり増加、厚生労働省統計　Nikkei Compass

シティホテルとビジネスホテルの違いとは？設備・サービスの特徴や求人情報を見てみよう！　おもてなしHR

旅館の魅力とその歴史: 日本の伝統美を再発見　つきのはたる