tl;dr – The ambitious Japanese project just received a large infusion of cash.
Back in May 2024, Hyatt made waves when it announced Atona, a new luxury hot spring Ryokan brand. If you’re unfamiliar with a ryokan – it’s a hospitality-forward, or “omotenashi,”
Japanese inn that provides traditional cultural experiences, including (but not limited to) tatami-matted rooms, communal baths (and sometimes hot springs), futons, and multi-course meals, and sometimes tea ceremonies. At their best, ryokans are really enjoyable experiences, so when Hyatt announced plans to enter the space, it piqued a lot of interest. Recently, there’s been a lot of movement on the project, which I felt warranted an update. Let’s dive in.
Hyatt Partners Close 22 Billion Yen Atona Impact Fund
Hyatt’s lead local partner in the Atona project is Japanese development firm Kiraku, and each owns fifty percent of the joint venture. Originally, there were plans to raise an initial 20 billion Yen for the project, 10 billion of which had already been secured at the time of the announcement. Hyatt recently disclosed that Kiraku and its partners had exceeded that initial goal, closing on the Atona Impact Fund with 22 Billion Yen $144,171,544 (as of writing) in funding. The money will go towards real estate investments, as well as the development and renovation of ryokans to be operated under the Atona brand. The fund also ‘aims to identify and invest in unique, high-quality tourism assets, with the ultimate goal of enhancing the long-term value and fostering the sustainable development of Japan’s regional areas.’
As Japan is an ever popular tourist destination, several players in the hospitality space are eagerly planning new developments in somewhat off-the-beaten path areas of the country (away from Tokyo, Kyoto, Osaka, Okinawa), or at the very least, areas that: had former glory-days of tourism; still have a lot of potential (mountains for skiing, nature-forward, hot springs, etc.); and are ripe for a revitalization.
For example, the Six Senses has plans for three resorts – one in Niseko (as does Aman), in Myoko, and Hakone Gora (though the latest Google search leads me to question the future of this one).
What to Expect from Atona (and Where the First Locations Will Be)
Hyatt plans to heavily ‘leverage the expertise and strengths of Kiraku to develop this new offering,’ which makes sense as the firm has a solid ryokan track record.
We know that ‘each Atona property will typically feature 30 to 50 guestrooms, onsen facilities using natural hot spring water from the local landscape, and open kitchen restaurants and bars showcasing seasonal ingredients. Guests can also look forward to wellness experiences centered around the onsen, as well as curated activities that highlight the unique culture and charm of each region.’
According to the Atona website, the first three locations will be in Yufu, Yakushima, and Hakone (I wonder if Hyatt/Kiraku are taking over those possibly defunct Six Senses plans?).
Last year, the Japan Times published a solid piece that offered some more helpful information. According to Kiraku founder, Kou Sundberg, there’s been a lot of thought put into making the ryokan experience authentic, but also one that provides westerners with the comfort and amenities they are used to at a luxury Hyatt property. For example, “guests will be able to choose between the typical futon floor mattresses or western beds. And while high-end ryokan typically feature set, multi-course kaiseki meals served with a sake pairing, Atona properties will have dine-in restaurants with a la carte menus. The idea is that guests can order a hamburger and a cocktail if the craving hits.”
Flexibility is also taken into account when it comes to amenities. “Although every room will have a private hot spring bath, there are plans to have larger communal hot springs at each property for guests who want the authentic experience.” Similarly, while there won’t be a traditional concierge, “there will be a point person similar to an okami-san — the word means landlady but refers to the traditional female proprietor of a ryokan who oversees all guests’ needs.”
As far as pricing goes, “starting nightly rates will likely range from $800 (¥125,000) to around $1,300 — and while World of Hyatt members will be able to use points for their bookings, the redemption rates will be equivalent to Hyatt’s most luxurious brands.”
My Take
To me, this is the most exciting upcoming project from any of the ‘core four’ hotel chains. It’s good to see that Hyatt and Kiraku are making such a significant financial and creative investment in making Atona a worthwhile experience for guests.
