Japan’s domestic pet-related market expanded to approximately ¥1.91 trillion in FY2024 and is projected to reach approximately ¥1.93 trillion in FY2025, with the ¥2 trillion milestone now firmly in sight. The number of pet dogs has also stabilized, edging from 6.796 million to approximately 6.82 million. What sets apart the hotels capitalizing on this pet-friendly travel demand? In this article, MetroEngines Research examines 5,817 pet-friendly properties out of the 27,000 active hotels tracked nationwide, analyzing ADR, weekday vs. weekend composition, and penetration rates across resort areas to reveal how pet-friendly hotels are becoming a critical driver of weekday resort demand.

The ¥1.9 Trillion Market Today and Stabilization of Dog Ownership

According to the latest survey published by Yano Research Institute in August 2025, Japan’s total pet-related market (retail value basis) is projected to reach ¥1.9108 trillion in FY2024 (up 2.6% YoY) and ¥1.9257 trillion in FY2025 (up 0.8% YoY). While growth is decelerating, the absolute value has grown by over ¥400 billion in ten years, making the ¥2 trillion breakthrough merely a matter of time.

The main drivers are pet food and various service sectors responding to increasingly sophisticated owner needs. The service market encompassing grooming, veterinary clinics, insurance, and pet funerals continues to diversify and evolve, with accommodation as a natural extension. Pet hotels and lodging facilities with attached veterinary clinics are no longer uncommon, and the keyword “pet-friendly” is rapidly gaining prominence in the tourism and leisure sector.

On the demand side, the number of pet dogs stood at approximately 6.796 million according to the Japan Pet Food Association’s 2024 National Dog and Cat Ownership Survey. While this represents a slight decline from 6.844 million the previous year, the rate of decline has clearly narrowed, showing signs of stabilization. The subsequent 2025 survey shows approximately 6.82 million, marking a shift from stabilization to modest growth. While the structural decline in household ownership rates continues, rising average number of pets per household is providing a floor. The polarization of “fewer households owning dogs, but those that do invest heavily” is likely a key factor pushing accommodation unit prices upward.

Source: Compiled by HotelBank Editorial Team from Yano Research Institute “Pet Business Survey (2025)” and Japan Pet Food Association “National Dog and Cat Ownership Survey”

5,817 Pet-Friendly Hotels Nationwide with an ADR Premium of Approximately 14.8%

Of the approximately 33,900 active hotels tracked by MetroEngines Research, 5,817 properties — about 17.1% of the total — carry pet-friendly flags such as “pets allowed,” “pet-friendly,” “pet-accommodating,” or “dogs OK” in their amenity and facility feature data. Since these flags are based on self-reporting by properties, there are facilities without flags that still accept pets under certain conditions. The figures in this article should be interpreted as representing “properties that publicly promote pet-friendliness.”

Aggregating approximately 4.8 million pricing records for check-in dates of May 15–22, 2026, the average ADR for pet-friendly hotels was ¥42,800, compared to ¥37,300 for general non-pet-friendly hotels. The difference of approximately ¥5,500 represents a premium of +14.8%. During the same period, sellout rates were 32.5% for pet-friendly vs. 19.0% for general hotels, with pet-friendly hotels showing 13.5 percentage points higher sales absorption — evidence that the demand side is accepting this price range. For a longitudinal view of demand and revenue opportunity trends compared to earlier data (the era of 6.79 million dogs), our initial analysis was conducted in Pet-Friendly Hotel Market in the Era of 6.79 Million Dogs: A Comprehensive Analysis of ADR and Revenue Opportunities, and this article serves as its sequel.

What is critical here is the breakdown of pet-friendly hotels by grade. By segment, there were 1,061 Upper-tier, 805 Luxury, and 484 High-grade properties, with mid- to upper-tier grades accounting for the majority. While Budget (706) and Economy (539) segments have some supply, the volume zone sits at mid-tier and above. Pet accommodation is not simply an on/off “pets allowed” feature — costs vary significantly depending on room specifications (carpet removal, dedicated bathing facilities, dog runs) and the completeness of pet amenities (bowls, pet sheets, etc.). The concentration in mid- to upper-tier grades likely reflects the fact that the business model of recouping these investments through higher unit prices works best in this range.

Source: Compiled by HotelBank Editorial Team from MetroEngines Research (May 15–22, 2026 check-in, N=approx. 4.8 million records, double occupancy, tax included)

Penetration and Pricing Across 5 Resort Areas: Nasu and Izu-Atami Show Notable Premiums

Next, we extracted five major resort areas — Karuizawa, Nasu, Izu-Atami, Hakone, and Niseko — for green season check-in dates (June 1–21, 2026) to compare pet-friendly hotel penetration rates and ADR. The area definitions are: Karuizawa Town; Nasu Town, Nasushiobara City, and Nasukarasuyama City; Izu City, Izunokuni City, Higashiizu Town, Minamiizu Town, Nishiizu Town, and Atami City; Hakone Town; and Niseko Town and Kutchan Town.

Penetration rates (pet-friendly share of active properties) were: Hakone 19.6%, Niseko 17.7%, Karuizawa 16.7%, Izu-Atami 16.1%, and Nasu 7.4%. Four areas — Hakone, Niseko, Karuizawa, and Izu-Atami — are at or above the national average (17.1%), while Nasu is lower, possibly because new pet-friendly facilities in Tochigi Prefecture are spread across a wider area. As shown in the table below, ADR also varies significantly by area.

Source: Compiled by HotelBank Editorial Team from MetroEngines Research (June 1–21, 2026 check-in, N=131 pet-friendly properties, 595 general properties, double occupancy, tax included, all-plan average)

The standout finding is the clear premiums in three areas: Nasu at +23.7%, Izu-Atami at +19.6%, and Hakone at +15.6%. These areas are 2–3 hours from Tokyo by bullet train or expressway, have a strong family car culture, and benefit from robust “drive-and-stay” demand among dog owners. For a deeper look at the supply base of the Atami area’s market structure, our analysis of 76 ryokans and 2,508 rooms in Atami provides useful context for understanding the base on which pet-friendly demand sits. Meanwhile, Karuizawa’s surprisingly modest +3.5% premium can be interpreted as the result of already-high ADR levels across the area, which compress the relative premium margin.

Niseko is the only area where pet-friendly hotel ADR falls below general hotels (¥46,700 vs. ¥54,100, -13.6%). Niseko’s ADR is strongly governed by inbound demand, but during the green season in June, leisure demand is thinner compared to winter. High-end condominiums and foreign-owned luxury properties cannot maintain winter pricing, causing general property ADR to remain elevated, while pet-friendly properties primarily serve domestic family guests at lower price points — creating a structural divergence. This is an intriguing signal suggesting that “pet-friendly” and “high-end” do not necessarily overlap. For more on the green season demand structure in Niseko and Karuizawa, including exchange rate sensitivity, see our Summer Resort 3-Region Comparison 2026: Niseko, Okinawa, Karuizawa — ADR, Booking Pace, and Currency Sensitivity.

Source: Compiled by HotelBank Editorial Team from MetroEngines Research (June 1–21, 2026, double occupancy, tax included)

Testing the “Weekday Demand Savior” Thesis: Do Pet-Friendly Hotels Boost Weekday ADR?

One of the biggest challenges in resort hotel management is addressing the demand curve of weekend-heavy, weekday-empty occupancy. Family guests are tied to school calendars, business travelers barely exist in resort areas, and inbound visitors are year-round but fluctuate with exchange rates and seasons. In this context, is “pet-friendly” working as a catalyst for filling weekday vacancies? To test this, we compared weekday (Monday–Friday) and weekend (Saturday–Sunday) ADR for pet-friendly vs. general hotels using check-in dates of June 1–14, 2026.

The results show that nationwide weekday ADR was ¥39,300 for pet-friendly vs. ¥34,300 for general hotels. On weekends, pet-friendly was ¥45,700 vs. ¥39,700 for general. Pet-friendly hotels maintain a +14.6% premium over general hotels even on weekdays — nearly identical to the weekend premium of +15.1%. In other words, pet-friendly demand is not just “expensive on weekends” but characterized by “selling at comparable unit prices on weekdays as well.”

Focusing on the five resort areas for the same period reveals an even clearer structure. Resort area weekday ADR was ¥62,800 for pet-friendly vs. ¥53,500 for general (premium +17.3%), while weekends showed ¥70,700 for pet-friendly vs. ¥59,700 for general (+18.3%). Resort areas naturally have larger weekend premiums, but for pet-friendly properties, weekday ADR reaches the mid-¥60,000 range — over ¥9,000 above the general resort weekday average. Against the typical “weekday resort” problem of downward pricing pressure, pet-friendly demand is clearly drawing a defensive line.

The sellout rate dynamics in the chart below are even more revealing. Nationwide weekday sellout rates were 23.9% for pet-friendly vs. 13.6% for general (a gap of +10.3 points), while weekends showed 28.0% vs. 16.4% (+11.6 points). About one in four pet-friendly hotels has restricted availability even on weekdays — a markedly different absorption curve from general resort hotels that typically struggle with weekday vacancies. In resort areas specifically, pet-friendly weekday sellout was 17.2% and weekend 22.5%, somewhat lower than the national figures but still 6.6 points above general resort properties on weekends (weekday 15.1%, weekend 15.9%). The growing flexibility of remote work and paid leave, combined with a higher proportion of senior dog owners who are not bound by children’s school schedules, may be driving sales absorption during off-peak periods.

Source: Compiled by HotelBank Editorial Team from MetroEngines Research (June 1–14, 2026 check-in, N=2,995 weekday properties, 3,000 weekend properties)

However, this is an observation at the national aggregate level, and resort area-specific weekday ADR is treated as a reference value in this article due to sample size constraints. Nevertheless, the trend is clear: pet-friendly guests exist as a segment that relatively boosts weekday resort demand. The debate over “should we fill slow weekdays with inbound tourists or MICE?” deserves a third option: “investing in pet-friendliness.”

The Glamping and Vacation Rental Connection: Natural Synergy of Whole-Unit Rentals and Pets

Looking at the pricing structure of pet-friendly hotels, alongside upper-tier grades, another significant volume zone consists of “vacation rentals,” “cottages,” and “villas.” These overlap with the rapidly growing whole-unit rental properties seen in recent years — a trend exemplified by the 475 new openings in 2026 that include a disproportionate number of vacation rental properties.

Whole-unit rentals are structurally well-suited for pet accommodation. There are no encounters with other guests in shared lobbies, corridors, or elevators, and private gardens or outdoor spaces allow dogs to play freely. Capital investment is contained at the unit level, allowing operators to choose pet-friendliness on a property-by-property basis. Glamping facilities share similar advantages — dome and glamping tent formats with minimal shared space with other guests are structurally easy to operate as pet-friendly. Indeed, 2026 new opening data shows a succession of small-scale whole-unit vacation rental openings in resort areas, including Villa Kaede-kura (Tochigi Prefecture), RisoVillage1 (Gifu Prefecture), The Villa Kotoshiro (Shimane Prefecture), Shogetsuso Moonlight Villa (Shizuoka Prefecture), and Girasole Kita-Karuizawa (Gunma Prefecture).

A symbolic development is Wan Wan Paradise Nara Ikoma (わんわんパラダイス 奈良生駒), which opened on April 11, 2026 in the Nara-Ikoma area (formerly Kamenoi Hotel Yamato-Heguri, 42 rooms). This is a textbook case of rebranding an existing onsen accommodation as a pet-specialized property, with rooms equipped with cages, pet sheets, and dedicated bowls, along with indoor and outdoor dog runs and paw-washing stations. The bold policy of no breed or number restrictions is designed to capture large-dog and multi-pet households — a demographic that has long struggled to find accommodation. This is a rebrand with the courage to shift the core target, and serves as a template for revitalizing mid-sized regional onsen hotels.

For the high-end segment, Hoshino Resorts (星野リゾート) is expanding dog-friendly plans nationwide, starting with KAI Kusatsu (界 草津). The glamping format has been establishing itself in the ¥40,000–¥60,000 ADR range in recent years, and pet-friendly whole-unit rentals naturally connect to that price range. Under the common thread of pet accommodation, rebranded mid-sized onsen hotels, high-end resorts, and vacation rentals/glamping are forming a loosely connected pricing ecosystem — that is the landscape of 2026.

2026 New Opening Highlights: Pet-Friendly and Whole-Unit Rental Properties

From properties tracked by MetroEngines Research, the following are major openings or rebrands confirmed in 2026 that prominently feature pet-friendliness or have structural affinity with pet operations as whole-unit rental or small-scale villa properties.

Source: Compiled by HotelBank Editorial Team from MetroEngines Research (extracted from 50 new openings in 2026 based on pet-friendly affinity)

The table reveals that vacation rental-type small-scale new openings are distributed across suburban resort areas accessible by car: Nasu, Yatsugatake, Kita-Karuizawa, Hokkaido, and Okinawa. While Wan Wan Paradise Nara Ikoma represents the iconic large-scale rebrand case, the underlying current shows 1- to few-room small properties expanding broadly across the market. Viewed together, the pet-friendly market is experiencing simultaneous “headline-generating iconic properties” and “long-tail supply expansion across the map” — indicating a healthy growth phase.

Revenue Management Implications: Investment Recovery Scenario Design

The data presented so far reveals several revenue opportunities from investing in pet-friendliness. First, the ADR premium averages +14.8% nationally and extends to +15–24% in top resort areas. For a resort hotel in the ¥40,000 ADR range, a realistic uplift of ¥6,000–¥9,000 per night is being achieved. Second, the 13.5-point gap in sellout rates suggests a structure where demand exceeds supply. Pet-friendly conversion benefits from both “higher unit prices” and “accelerated sales absorption.”

Of course, investment costs are not zero. Room specification changes (carpet removal, paw-washing stations, dedicated ventilation, dog runs), ongoing pet amenity costs, additional cleaning processes, and staffing for incident management are all required. However, as the supply distribution concentrated in upper-tier grades shows, the investment recovery logic works well in the ¥30,000+ ADR range. Conversely, in the sub-¥10,000 range typical of business hotels, cost absorption margins are thin, making the pet-friendly strategy most practical when focused on either “resort + upper-tier grade” or “whole-unit rental” formats.

We propose three scenarios. The first is a strategy where a mid-sized regional onsen hotel undergoes a Wan Wan Paradise-style rebrand, replacing declining traditional demand with dog-owner guests as the core target. The second is a strategy where a high-end resort hotel converts a portion (10–20%) of existing rooms to pet-friendly, aiming to boost weekday ADR and sales absorption. The third is a strategy where newly built vacation rentals are designed as pet-friendly from the outset, positioning dog owners as the primary customer base. Each targets different customer segments and investment scales, but all participate in the same ecosystem under the shared theme of “capturing pet-friendly demand.”

Conclusion: The Next Resort Demand Wave Driven by a ¥1.9 Trillion Market

This article has presented five key facts from MetroEngines Research’s nationwide data: (1) pet-friendly hotels account for 5,817 properties and 17.1% of the total; (2) they show an ADR premium of +14.8% and a sellout rate advantage of +13.5 points; (3) across five resort areas, Nasu, Izu-Atami, and Hakone show significant premium differentials; (4) they maintain a +14.6% weekday premium in sales absorption; and (5) they have high affinity with whole-unit rentals and vacation rentals, with broad geographic expansion visible in 2026 new openings.

The ¥1.9 trillion pet-related market, 6.82 million pet dogs, and the structural shift of modestly rising pets per household represent a trend the hotel industry cannot afford to ignore. Resort hotels struggling with weekend-heavy demand, regional onsen hotels seeking rebrand opportunities, and new-entrant vacation rental owners — each can find realistic revenue opportunities in capturing pet-friendly demand. Connecting to the new ¥40,000–¥60,000 price range seen in the glamping segment, pet-friendly hotels are poised to become a force pushing up the ADR floor over the coming years.

External Resources

• Yano Research Institute “Pet Business Survey (2025)”
• Japan Pet Food Association “National Dog and Cat Ownership Survey”
• Wan Wan Paradise Nara Ikoma (Official)