MetroEngines Research tracks lodging facilities across Japan. Counting the properties in Kyoto Prefecture whose listings were newly confirmed in 2026, as of November 6, 2026, gives 96 properties and 1,114 rooms. That is an average of 11.6 rooms per property. Just over half of the properties (50) are machiya townhouse stays, and 49 of those have only 1–2 rooms. Nearly 70% of the rooms, on the other hand, sit in six properties: Courtyard by Marriott Kyoto Station (270 rooms, scheduled to open November 16, 2026), Toyoko Inn Kyoto Nagaokakyo (183 rooms), APA Hotel Kyoto Fukuchiyama Ekimae (91 rooms), Capella Kyoto (89 rooms), Omuro Kadensho (67 rooms) and The Imperial Hotel Kyoto (55 rooms). This article breaks down Kyoto’s 2026 supply, small in rooms per property but concentrated in a few large projects, by property type, municipality and size. It then sets that supply against the estimated settled ADR of the wards where the new hotels opened and the room stock within 1km of Kyoto Station and of Gion, to show where developers and buyers of small high-rate properties should look for room to grow.

The room stock around Kyoto Station covers lodging facilities with 10 or more rooms (excluding leisure/love hotels) within a 1,000m radius of Courtyard by Marriott Kyoto Station; “operating” means a property with sales prices confirmed on major booking sites in the last 3 months (September–November 2026) (as of November 7, 2026, MetroEngines Research). The Gion-side room stock covers lodging facilities with 10 or more rooms (excluding leisure/love hotels) within a 1,000m radius of The Imperial Hotel Kyoto, with “operating” defined the same way (as of November 7, 2026, MetroEngines Research). New-opening property and room counts are based on confirmed listings on major booking sites, drawn from the roughly 27,000 properties tracked by MetroEngines Research that are confirmed operating.

By Property Type — Machiya Lead the Count, 15 Hotels Hold 80% of Rooms

Start with the breakdown by type. Of the 96 properties, 50 are machiya (69 rooms) and 18 are vacation rentals (25 rooms). These two types alone account for 70.8% of properties but only 94 rooms, or 8.4% of the total. By contrast, the 15 hotels, made up of 8 business hotels (380 rooms), 5 city hotels (354 rooms) and 2 deluxe hotels (144 rooms), hold 878 rooms, or 78.8% of all rooms. There are 3 ryokan with 81 rooms, 67 of which belong to Omuro Kadensho, opened by Kyoritsu Resort in Omuro, Ukyo Ward. The rest is made up of 3 hostels (28 rooms), 4 guesthouses (18 rooms), 1 cottage (13 rooms) and 2 minshuku (2 rooms).

This pattern cannot be separated from Kyoto City’s New Landscape Policy of September 2007, which caps building heights in the urban area at 10–31m as a rule (31m along arterial roads, 15m behind them, and so on). Kyoto City’s landscape guidelines added “buildings that contribute to community development” as eligible for special exemptions from the height limits in April 2021, but the room to stack up large room counts in the city center remains structurally limited. Kyoto City also runs a high-quality accommodation attraction program that allows qualifying upscale properties to open even in zones where hotels are restricted, while in 2019, after a rapid rise in rooms and crowding, it revised its earlier policy of expanding lodging capacity. In a policy environment that has shifted from “quantity” to “quality” of supply, it is a natural outcome that 2026’s new supply split into machiya on one side and a handful of high-rate hotels on the other.

By Size — 78 Properties Have 9 Rooms or Fewer, Only 2 Exceed 100

Sorting by rooms per property makes the split even clearer. The distribution is 78 properties with 1–9 rooms (130 rooms), 12 with 10–49 rooms (229 rooms), 4 with 50–99 rooms (302 rooms) and 2 with more than 100 rooms (453 rooms); the median across all 96 is 1 room. The two 100+ room properties are Courtyard by Marriott Kyoto Station (270 rooms) and Toyoko Inn Kyoto Nagaokakyo (183 rooms), in sharply contrasting locations: the Kyoto Station area, where the prefecture’s existing stock is deepest, and Nagaokakyo City, which had almost no hotels. The four 50–99 room properties are APA Hotel Kyoto Fukuchiyama Ekimae, Capella Kyoto, Omuro Kadensho and The Imperial Hotel Kyoto, pairing a home for business demand in the north of the prefecture with luxury and upscale onsen stays in Gion and Omuro.

The 12 properties with 10–49 rooms include Kiori Hotel Teramachi (34 rooms), Kyoto Fangate Hotel (31 rooms), Agora Place Kyoto Nijo (30 rooms), Kiori Collection Gokomachi (21 rooms), MUJI BASE KYOTO kiyomizu (18 rooms) and Gion Genmatsu (17 rooms), forming a “mid-size boutique” band that runs from the central Shijo–Karasuma grid (the “ta-no-ji” district) to Higashiyama. For operators aiming at small high-rate properties, these 12 properties and 229 rooms are the 2026 cohort of direct competitors.

By Municipality — Kyoto City Has 87 Properties and 803 Rooms, Concentrated in Minami, Higashiyama and Shimogyo

By location, 87 of the 96 properties (803 rooms) are in Kyoto City, and the remaining 9 (311 rooms) are spread across Nagaokakyo, Fukuchiyama, Miyazu, Kyotanabe, Kyotango and Uji. Within the city, Minami Ward leads with 24 properties and 312 rooms, but that total is the 270 rooms of Courtyard by Marriott Kyoto Station plus small properties such as 15 machiya and 6 vacation rentals, mostly around Higashi-Kujo; one large project and many machiya share the same ward. Higashiyama Ward has 25 properties and 227 rooms: two luxury hotels, The Imperial Hotel Kyoto (55 rooms) and Capella Kyoto (89 rooms), alongside properties of up to about 20 rooms such as Gion Genmatsu, MUJI BASE KYOTO kiyomizu and Ayanishiki Gion, plus 14 machiya. Shimogyo Ward has 21 properties and 116 rooms, anchored by mid-size boutiques in the central grid such as Kiori Hotel Teramachi, Kiori Collection Gokomachi and Kyoto Fangate Hotel.

Outside the city, Nagaokakyo’s 183 rooms and Fukuchiyama’s 91 rooms stand out. Nagaokakyo is a residential and industrial city within 15 minutes of central Kyoto by Hankyu and JR, and Toyoko Inn Kyoto Nagaokakyo is a 7-minute walk from JR Nagaokakyo Station and a 5-minute walk from Hankyu Nagaoka-Tenjin Station. With occupancy in Kyoto City staying high, price-sensitive business and leisure demand is being absorbed outside the city. The same pattern applies to Toyoko Inn JR Uji Station South Exit (172 rooms, not yet listed), scheduled to open in Uji on December 25, 2026, suggesting a new layer of business hotels is forming on the edges of Kyoto City.

Overlaying the rate levels of the wards where the new properties opened shows which price tiers 2026’s supply went into. Higashiyama Ward’s estimated settled ADR was ¥32,400 in October 2026 (N=51, +8.3% YoY), the highest in the city, and it gained two properties with listed prices above ¥200,000: The Imperial Hotel Kyoto and Capella Kyoto. Shimogyo Ward, at ¥23,100 (N=170, +14.8%), received Kiori’s two mid-size boutiques (55 rooms) and Kyoto Fangate Hotel (31 rooms). Minami Ward was ¥20,000 (N=54, +8.9%), and Courtyard by Marriott Kyoto Station enters at a price tier above the ward median. The background to the October rebound in ward ADRs is covered in Kyoto ADR Flips Up in October: City +12.4%, Business +9.1% YoY.

Eight Key Properties — Opening Dates and How They Were Confirmed

Opening dates for individual properties were checked against listing data and operator announcements. Any date after November 6, 2026 is treated as “scheduled.” Courtyard by Marriott Kyoto Station was set to open on November 16, 2026, per the announcement by JR Central Hotels and Marriott; it is about a 3-minute walk from the Hachijo East Exit of Kyoto Station, with 9 floors above ground and 1 below, and 270 rooms in 10 room types. The Imperial Hotel Kyoto opened on March 5, 2026, on the grounds of the Gion Kobu Kaburenjo theater; it partly preserves and reuses the Yasaka Kaikan, a Registered Tangible Cultural Property completed in 1936, and has 7 floors above ground, 2 below and 55 rooms. Capella Kyoto opened on March 22, 2026, in Komatsu-cho (Miyagawa-cho), Higashiyama Ward, with 89 rooms, 29 of them suites, designed by Kengo Kuma and Associates.

Omuro Kadensho is the third property in Kyoritsu Resort’s “Kadensho” series: an onsen ryokan with 67 rooms, about a 2-minute walk from Omuro-Ninnaji Station on the Randen line, which had a soft opening on May 24, 2026, and its grand opening in July. It is the series’ third Kyoto property after Arashiyama Onsen and Umekoji, and its location right next to Ninnaji, a World Heritage temple, gives it unusually strong drawing power within the series. APA Hotel Kyoto Fukuchiyama Ekimae opened on May 1, 2026, a 1-minute walk from the south exit of JR Fukuchiyama Station, with 91 rooms and 50 free parking spaces; it is the chain’s second property in the north of the prefecture after APA Hotel Nishi-Maizuru Ekimae. Toyoko Inn Kyoto Nagaokakyo began taking reservations on October 23, 2026, and the operator’s announcement puts its opening on January 22, 2027, with 182 rooms (the listing shows 183 rooms, and this article’s totals use the listed figure). Kiori Hotel Teramachi (34 rooms), Kiori Collection Gokomachi (21 rooms) and Kiori Collection Nishiki (12 rooms) belong to the KIORI series in the central grid. Their listings carry a placeholder opening date of end-2026, but sales prices have been confirmed since August 2026 for Teramachi and since September for Gokomachi, so they are already operating.

Net Additions — Excluding Two Rebrands (121 Rooms) Leaves 94 Properties and 993 Rooms

New-listing counts can include existing properties relisted under a new brand. Of Kyoto Prefecture’s 96 properties in 2026, two were confirmed as rebrands of existing buildings through operator announcements or press reports: APA Hotel Kyoto Fukuchiyama Ekimae (formerly R-Inn Fukuchiyama, 91 rooms under a franchise agreement) and Agora Place Kyoto Nijo (30 rooms), which reopened under its new brand in March 2026. These two properties and 121 rooms are a change of clothes for existing rooms, not a net addition to the prefecture’s room stock; excluding them, the net addition is 94 properties and 993 rooms. Conversely, the string of rebrandings to foreign brands in Kyoto City in 2024–2025 (existing hotels taken over under management contracts or converted to new brands) is not in this count, because their opening year is not 2026.

Given how the data is observed, the 1,114-room figure should be read as a lower bound for now. Listings on major booking sites appear only a few months before opening: even for properties that opened in Kyoto Prefecture in 2024–2025, only about 20% had a listing confirmed before opening, and close to 40% were first confirmed more than 91 days after opening. That only two properties with 453 rooms (Courtyard by Marriott Kyoto Station and Toyoko Inn Kyoto Nagaokakyo) are currently listed as scheduled for November–December 2026 is not because supply is stopping, but because listings have not caught up. Toyoko Inn JR Uji Station South Exit (172 rooms, scheduled for December 25) not yet being in the count is a case in point, and the 2026 cohort’s property and room counts will be revised upward after the new year.

2024 to 2026 — Rooms Less Than Halved in Two Years, Property Count Flat

On the same confirmed-listing basis, the past two years compare as follows: 105 properties and 2,517 rooms in 2024, 89 properties and 1,861 rooms in 2025, and 96 properties and 1,114 rooms in 2026 as of November 6. The property count has stayed roughly flat in a 90–105 band, but rooms shrank by more than half, from 2,517 in 2024 to 1,114 in 2026. 2024 was driven by large projects, including two hotels with more than 300 rooms, and 2025 had several 100+ room properties such as Hotel Route Inn Kyoto Kumiyama (224 rooms) and Courtyard by Marriott Kyoto Shijo Karasuma (125 rooms). That 2026 has only two properties above 100 rooms reflects both the difficulty of securing large sites and height in the city center and brands repeatedly choosing small, high-rate flagships in Kyoto.

The 2026 figures, however, are still being observed. As noted above, listing lags leave room for upward revisions of several dozen rooms before year-end and several hundred after the new year, so the gap with 2025’s 1,861 rooms is likely to narrow. What the room trend shows is not a drop in absolute numbers but the continuing trend toward smaller properties. The average fell from 24.0 rooms in 2024 to 20.9 in 2025 and 11.6 in 2026, and the more machiya and vacation rentals there are, the further the average is pulled down.

Compared With Other Prefectures — 11.6 Rooms per Property Is the Smallest of Eight

Set against seven other major tourism and urban prefectures on the same confirmed-listing basis (as of November 6, 2026), Kyoto’s “small and many” supply profile stands out. Kyoto Prefecture’s average of 11.6 rooms per property is just below Nara (17 properties, 203 rooms, 11.9 rooms) and the smallest of the eight prefectures compared. Osaka has 55 properties and 3,568 rooms, an average of 64.9 rooms and a median of 34; it has under 60% of Kyoto’s property count but 3.2 times the rooms, and its 12 properties with 100+ rooms hold 65.4% of the rooms. Tokyo has 110 properties and 2,966 rooms, an average of 27.0, close to Kyoto in property count but with 2.7 times the rooms.

The share of properties with fewer than 10 rooms is high in tourism-driven prefectures: 81.3% in Kyoto, 82.1% in Hyogo, 79.8% in Hokkaido and 73.1% in Okinawa. But in Hokkaido, Okinawa and Hyogo, 100+ room projects carry 67.9–78.5% of the rooms, so many small properties coexist with large-project room volume. In Kyoto, properties with 100+ rooms number just two and hold only 40.7% of rooms; apart from Nara, which has no 100+ room projects, Kyoto shows the weakest build-up of rooms from large projects among those compared. The prefectural comparison thus supports the structure described in the previous section, where height and landscape rules keep large sites from coming to market. From an investment standpoint, Kyoto’s new supply adds few rooms per project, and its effect on the overall stock is limited to specific catchments, such as around Kyoto Station, where individual large projects compete directly.

Source: MetroEngines Research & Consulting (based on confirmed OTA listings, N=Kyoto 96 / Nara 17 / Hokkaido 178 / Hyogo 67 / Fukuoka 100 / Tokyo 110 / Okinawa 104 / Osaka 55 properties, as of November 6, 2026). Sorted by average rooms per property, smallest first

Within 1km of Kyoto Station — 270 Rooms on 18,145 Operating Rooms, a 1.5% Addition

We check the competitive setting of Courtyard by Marriott Kyoto Station, 2026’s largest project, using the room stock within a 1,000m radius. The area has 204 listed properties with 21,135 rooms, of which 143 properties with 18,145 rooms had sales prices confirmed in the last 3 months. The 270 rooms add just 1.5% on an operating basis and 1.3% on a listed basis. By type, business hotels account for 97 properties and 13,775 rooms, or 65% of the area, followed by 16 city hotels (4,550 rooms) and 3 deluxe hotels (518 rooms). By size, the 34 properties with 201+ rooms hold 11,330 rooms, or 54%, making this a station-front market with an unusual density of large hotels by Japanese standards, including Miyako Hotel Kyoto Hachijo (988 rooms), Hotel Elcient Kyoto Hachijoguchi (566 rooms) and Hotel Granvia Kyoto (537 rooms).

Cumulative stock in the area rose from 110 properties and 11,234 rooms in 2017 to 175 properties and 19,026 rooms in 2026, +69% in ten years. The annual series, though, shows growth slowing to under 100 rooms a year from 2023 and nearly flat from 2024 to 2025. Courtyard’s 270 rooms in 2026 are the first sizable addition to this “stalled” station area since 2022 (+375 rooms), four years earlier. Forward estimates of its settled ADR show seasonal pricing: ¥43,600 in its opening month of November (from the 16th), ¥24,000 in December, ¥20,800 in January 2027, ¥19,800 in February and ¥44,100 in March. Against Minami Ward’s October median of ¥20,000 and Shimogyo Ward’s ¥23,100, it enters at about the ward median even in the off-season, and at roughly double that level in the autumn-foliage and cherry-blossom peaks.

Within 1km of Gion — 144 Top-Tier Rooms Join a Small 7,230-Room Market

The Gion side, where The Imperial Hotel Kyoto and Capella Kyoto opened, is built completely differently from the station area. Within a 1,000m radius of The Imperial Hotel Kyoto there are 216 listed properties with 9,771 rooms and 148 operating properties with 7,230 rooms: more properties than around Kyoto Station, but only about 40% of the rooms on an operating basis and just under 50% on a listed basis. Properties with 50 rooms or fewer number 167 with 3,754 rooms, 77% of properties, and only 3 properties with 739 rooms have 201+ rooms. By type, supply is spread across 67 business hotels (4,034 rooms), 60 hostels (1,244 rooms), 11 deluxe hotels (874 rooms) and 29 ryokan (645 rooms); the numbers reflect a small, dispersed market typical of Gion and Higashiyama. Cumulative stock grew 2.8-fold in ten years, from 85 properties and 2,911 rooms in 2017 to 181 properties and 8,057 rooms in 2026, but since 2024 growth has been 120–250 rooms a year, built up in small steps under height limits and landscape district rules.

The two top-tier properties and 144 rooms that joined this market are 2.0% of operating rooms, but 16.5% of the 874 deluxe-hotel rooms in the area. October 2026 listed prices (average of all plans, two guests per room, tax included) were ¥447,800 for Capella Kyoto (lowest plan ¥373,500) and ¥266,900 for The Imperial Hotel Kyoto (lowest plan ¥154,200), an order of magnitude above Higashiyama Ward’s estimated settled ADR of ¥32,400. Rather than competing with local mid-priced properties, the two hotels create a market at exactly the level for which Kyoto City introduced a new top accommodation-tax bracket on March 1, 2026 (¥10,000 per person per night at ¥100,000 or more). For Gion’s existing small properties, they are less direct competitors than anchors that may lift the price benchmark for the whole area.

Supply and Demand — October’s 92.7% Prefecture-Wide Estimated OCC Absorbs New Supply

Next, the demand side that has to absorb the supply. MetroEngines Research estimates Kyoto Prefecture’s October 2026 occupancy (estimate based on OTA-listed inventory) at 92.7% (778 properties / 32,933 rooms, based on listings on major booking sites), up 8.7pt from September’s 84.0% (566 properties / 31,989 rooms) as demand entered the pre-foliage season. By type, business hotels were at 93.9% (197 properties / 19,421 rooms), city hotels 92.3% (37 / 5,084), ryokan 90.2% (120 / 2,205) and deluxe hotels 88.7% (18 / 1,549), all high at around 90%. These estimates are based on how the inventory sold on major booking sites is being taken up and differ from each property’s actual overall occupancy.

Public and industry statistics point the same way. According to the Kyoto City Tourism Association’s annual report, room occupancy at the city’s major hotels (105–115 hotels depending on the month) was 80.6% for full-year 2025, 2.8pt above the prior year’s 77.8%. Total guest nights rose 4.9% to 10,549,946, with foreign guest nights up 14.6%. Occupancy in October 2025 was 90%, the highest since the pandemic, and March 2026 was 81.6%, 2.5pt above a year earlier. On estimated settled ADR, Kyoto Prefecture as a whole was ¥20,600 in October 2026 (N=602), +6.9% YoY; city hotels were ¥32,900 (N=63), +12.4%; and business hotels ¥19,700 (N=326), +9.1%. That is a reversal from year-on-year declines (June–September for business and city hotels, June–August for all types). Against new supply of around 1,000 rooms a year, a demand environment of 90% occupancy and rebounding rates shows ample capacity to absorb it.

Regulatory Setting — Five Accommodation-Tax Brackets and Landscape/Disaster Site Conditions

Any assessment of Kyoto’s 2026 supply has to start from the revised Kyoto City accommodation tax that took effect on March 1. The number of brackets rose from three to five, based on the room charge per person per night: ¥200 under ¥6,000; ¥400 from ¥6,000 to under ¥20,000; ¥1,000 from ¥20,000 to under ¥50,000; ¥4,000 from ¥50,000 to under ¥100,000; and ¥10,000 at ¥100,000 or more. The listed prices of The Imperial Hotel Kyoto and Capella Kyoto run ¥200,000–450,000 for two guests per room, which per person falls in the top bracket or the ¥4,000 bracket. Most machiya stays and mid-size boutiques, by contrast, fall in the ¥400–1,000 brackets, so the tax has limited effect on their price competitiveness.

On physical site conditions, Kyoto City data show no Special Sediment Disaster Warning Areas in Kamigyo, Nakagyo, Shimogyo or Minami wards, while Higashiyama Ward has Sediment Disaster Warning Areas along the foot of the hills. The Kamo River is managed by Kyoto Prefecture, and its flood inundation zones can be checked point by point on the Kyoto City disaster information map. Of the 96 new properties in 2026, the distribution of 25 in Higashiyama, 24 in Minami and 21 in Shimogyo is concentrated on the flat urban core, so landslide and flood risks are adequately handled by checking each property individually. What matters more for project economics is regulatory fit: the maximum floor area obtainable under height limits and landscape-district design rules, and whether a project could qualify for the high-quality accommodation attraction program.

Listed REIT Holdings in Kyoto — 5 Properties, 774 Rooms; None From the 2026 Cohort

Looking at Kyoto’s existing stock from an investor’s perspective, seven listed hotel-focused and diversified REITs (Ichigo Hotel REIT, Invincible Investment Corporation, Nippon Hotel & Residential Investment Corporation, Japan Hotel REIT Investment Corporation, Hoshino Resorts REIT, Mori Trust REIT and Kasumigaseki Hotel REIT) together own 5 properties with 774 rooms in Kyoto Prefecture, at a combined acquisition price of ¥24,428M (J-REIT ownership data, as of November 2, 2026). They are Japan Hotel REIT’s ibis Styles Kyoto Station (215 rooms, ¥6,600M) and Oriental Hotel Kyoto Rokujo (166 rooms, ¥4,446M); Invincible Investment Corporation’s Hotel MyStays Kyoto Shijo (224 rooms, ¥6,024M, acquired July 2014); Ichigo Hotel REIT’s Smile Hotel Kyoto Shijo (144 rooms, ¥4,480M, acquired November 2015); and Hoshino Resorts REIT’s HOSHINOYA Kyoto (25 rooms, ¥2,878M, acquired July 2013).

The point to note is that four of the five REIT-owned properties are mid-tier limited-service hotels between Kyoto Station and Shijo, while small high-rate properties like the 2026 additions (The Imperial Hotel Kyoto, Capella Kyoto, Omuro Kadensho and the Kiori properties) are barely represented in the listed market. HOSHINOYA Kyoto (25 rooms) is the only small high-rate asset, and its acquisition price per room of ¥115M is about four times that of the other four (¥27–31M per room). The 2026 cohort’s small high-rate properties are currently held by developers, operators and private funds, and once their operations stabilize they enter the stage where a sale to a listed REIT or private fund may be considered. Kyoto’s small high-rate properties command high per-room valuations, but because each property is small in value, portfolio acquisitions bundling several properties are relatively easy to put together.

Pipeline From 2027 — 135 Rooms in Kamigyo and 53 in Higashiyama on a Building-Permit Basis

Looking to 2027 and beyond, the hotel plans in Kyoto Prefecture that can be identified from building-permit applications in the Ministry of Land, Infrastructure, Transport and Tourism’s Building Construction Statistics are two: a 135-room project by Mitsubishi Estate in Shokokuji Monzen-cho, Kamigyo Ward (total floor area 20,553.6 sq m, 3 floors above ground, scheduled for completion on September 30, 2027), and a 53-room project by ORIX Real Estate in Sanjusangendo-mawari, Higashiyama Ward (4 floors above ground, scheduled for completion on December 31, 2028). The Shokokuji Monzen-cho project is analyzed in detail in Rosewood Kyoto Shokokuji: 135 Rooms at 152 sq m Each Need ¥82,600 ADR, and it was also reviewed by an expert panel as a candidate for Kyoto City’s high-quality accommodation attraction program. Because building permits are usually filed one to two years before opening, this count is a lower bound for the confirmed pipeline as of the survey, and the number of projects and rooms is expected to grow as further applications are filed.

Separately from building permits, two projects have opening dates fixed by operator announcements: Toyoko Inn JR Uji Station South Exit (172 rooms, scheduled for December 25, 2026) and Toyoko Inn Kyoto Nagaokakyo (182 rooms, scheduled for January 22, 2027). The former is not yet in this article’s 2026 count, while the latter is in the 2026 cohort on a listing basis. Together, their 354 rooms are the most sizable limited-service supply outside Kyoto City since Hotel Route Inn Kyoto Kumiyama (224 rooms) in 2025, and they mark a turning point at which the edges of Kyoto City start to work as an overflow for the city’s 90% occupancy. Among conversions of existing buildings, Avani Kyoto’s 240 rooms, in the former Kyoto Shimbun building, are coming up in Nakagyo Ward. The full picture of the 16 projects completing nationwide in 2027 is set out in 2027 Hotel Completions in Japan: 16 Projects, 3,672 Rooms, 4 Towers.

Implications for Development and Acquisition — The Gap at 10–49 Rooms and Clusters of Machiya

To sum up, Kyoto’s 2026 supply is thick at both ends, with 78 properties of 1–9 rooms and 6 properties of 50+ rooms, while the 10–49 room band in between is thin at 12 properties and 229 rooms. In a market where ward-level estimated settled ADRs sit in the ¥20,000–30,000 range (Higashiyama ¥32,400, Shimogyo ¥23,100, Nakagyo ¥23,400), this middle band is the range in which a property can price rooms at 1.5–2 times the ward median while still getting the operating efficiency of 20–40 rooms in one building. Gion Genmatsu (17 rooms) recording an estimated settled ADR of ¥50,100 in October 2026 and Kiori Collection Gokomachi (21 rooms) ¥56,600 are concrete examples of the depth of demand in this band. For operators pursuing small high-rate properties, the 10–49 room band in Gion/Higashiyama and the central grid offers ample room for entry, given that the competing cohort is just 12 properties a year.

Modeling the 10–49 Room Band — Three Scenarios and ADR × OCC Sensitivity

We model the economics of this middle band on a room-revenue basis, assuming a 30-room small high-rate property. The base is Higashiyama Ward’s 12-month average estimated settled ADR of ¥23,830 (November 2025–October 2026, monthly N=43–51). October alone, at ¥32,384, is a peak autumn-foliage month and too high a base for judging full-year economics. The downside case uses the ward average of ¥23,800 and OCC of 70%; the base case 1.5x (¥35,700) and the Kyoto City Tourism Association’s full-year 2025 occupancy for the city’s major hotels, 80.6%; and the upside case 2.0x (¥47,700) and OCC of 85%. Annual room revenue for 30 rooms (ADR × OCC × 365 days × 30 rooms) is ¥182M in the downside case, ¥315M in the base case and ¥444M in the upside case, a spread of about 2.4x between downside and upside.

Source: HotelBank Editorial Team estimates based on MetroEngines Research & Consulting (Higashiyama Ward estimated settled ADR, 12-month average, N=43–51 properties/month) and the Kyoto City Tourism Association’s “Kyoto Tourism Comprehensive Survey Data Annual Report 2025”. ADR rounded to the nearest ¥100. Excludes operating costs, rent, taxes and ancillary revenue

The sensitivity shows that the ADR level moves RevPAR more than swings in OCC. If a property can achieve 1.5x the ward average ADR, RevPAR is ¥24,990 even with OCC down at 70%, above the ¥21,420 achieved at the ward average ADR with 90% OCC. On October 2026 estimated settled ADR, Gion Genmatsu’s ¥50,141 is 1.55x the Higashiyama Ward median for that month, and Kiori Collection Gokomachi’s ¥56,645 is 2.45x the Shimogyo Ward median. Both values, however, are for a single peak month, and it is reasonable to expect their full-year figures to fall between the base and upside cases in the table.

Source: HotelBank Editorial Team estimates based on MetroEngines Research & Consulting (Higashiyama Ward estimated settled ADR, November 2025–October 2026). RevPAR = ADR × OCC. Does not represent the earnings of any specific property

For machiya stays, the large count of 50 properties and 69 rooms is better viewed not as the scale of any single business but as clusters: 15 in Minami Ward, 14 in Higashiyama and 12 in Shimogyo. Running a building with one or two rooms is hard to make work on its own given labor costs and cleaning logistics, but the model of operating or acquiring around ten buildings together within one ward is already practiced by several operators in Kyoto. The concentration of 2026’s machiya supply in these three wards means they are where candidates for bundled acquisition and joint operation are easiest to find. Omuro Kadensho, meanwhile, has kept selling steadily from its first year at an estimated settled ADR of ¥30,000, on par with the ward median of ¥29,800 (Ukyo Ward, N=15). It can serve as proof that, even away from the center, an upscale ryokan with onsen baths and meals next to a World Heritage site can sustain a high rate tier.

Finally, a word on the business-hotel tier outside Kyoto City. Toyoko Inn Kyoto Nagaokakyo’s forward-estimated settled ADR for January–March 2027 is around ¥9,800, and APA Hotel Kyoto Fukuchiyama Ekimae continues to sell steadily in its station-front location in the north of the prefecture. These properties have established a position that reliably captures, in surrounding cities, the price-conscious demand that overflows from Kyoto City’s market of 90% occupancy and ¥20,000-plus rates. As a ring of overflow capacity forms in Nagaokakyo, Uji, Kumiyama and Fukuchiyama, rates in Kyoto City are, if anything, likely to keep rising more easily, and the supply structure heading into 2027 will probably be one in which small high-rate properties in the center and limited-service hotels on the periphery increasingly complement each other.

Summary

New openings in Kyoto Prefecture in 2026 total 96 properties and 1,114 rooms on a confirmed-listing basis as of November 6, an average of 11.6 rooms per property. Seventy percent of properties are the 68 machiya and vacation rentals (94 rooms), while 70% of rooms sit in the 6 properties with 50+ rooms (755 rooms). By municipality, Kyoto City has 87 properties and 803 rooms, centered on Minami Ward (312 rooms), Higashiyama Ward (227) and Shimogyo Ward (116); outside the city, Nagaokakyo (183 rooms) and Fukuchiyama (91 rooms) provided sizable supply. Excluding the two confirmed rebrands (121 rooms), the net addition is 94 properties and 993 rooms, and given listing lags it will be revised upward after the new year. On the demand side, October’s prefecture-wide estimated OCC was 92.7% (778 properties / 32,933 rooms) and estimated settled ADR was +6.9% YoY, an environment able to absorb around 1,000 new rooms a year. Within 1km of Kyoto Station, the 270 new rooms add 1.5% to operating rooms; within 1km of Gion, the 144 top-tier rooms equal 16.5% of the deluxe tier. Both work to lift price benchmarks in their existing markets. The thin 10–49 room band and the clustering of machiya in three wards point to concrete opportunities heading into 2027 for developers and buyers of small high-rate properties.

Frequently Asked Questions

Q. How many hotels and inns opened in Kyoto Prefecture in 2026?
Within the listings MetroEngines Research has confirmed on major booking sites, 96 properties with 1,114 rooms as of November 6, 2026. Machiya stays account for 52% of properties (49 of them with 1–2 rooms), and only two properties exceed 100 rooms: Courtyard by Marriott Kyoto Station (270 rooms) and Toyoko Inn Kyoto Nagaokakyo (183 rooms). Because listings often appear only after opening, this figure is expected to rise.

Q. When does Courtyard by Marriott Kyoto Station open?
According to JR Central Hotels and Marriott, it is scheduled to open on November 16, 2026. It is about a 3-minute walk from the Hachijo East Exit of Kyoto Station, with 9 floors above ground and 1 below and 270 rooms, adding 1.5% to the 18,145 operating rooms within a 1km radius.

Q. How did Kyoto City’s accommodation tax change in 2026?
For stays from March 1, 2026, the number of tax brackets went from three to five, based on the room charge per person per night: ¥200 under ¥6,000; ¥400 from ¥6,000 to under ¥20,000; ¥1,000 from ¥20,000 to under ¥50,000; ¥4,000 from ¥50,000 to under ¥100,000; and ¥10,000 at ¥100,000 or more. The rate applies by date of stay, not by booking date.

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