Japan Resort Region Emerges as New Hotel Hot Spot

The city of Beppu, Japan, is famous for its hot springs, particularly the dramatic, colorful, and extremely hot natural pools collectively known as the “Hells of Beppu.” The region produces one of the largest volumes of spring water in the world — second only to Yellowstone National Park in the United States — making it a standout destination for onsen enthusiasts.

In recent years Beppu has seen renewed interest from both domestic and international travelers, prompting expansion and investment in hospitality. International hotel companies have begun establishing a presence in the city, signaling confidence in its potential to attract more visitors.

InterContinental Hotels Group, in partnership with All Nippon Airways, announced plans to open an 89-room luxury hotel in 2019. This development marked one of the first entries by a major global brand into Beppu’s accommodations market and suggested further international investment could follow.

At the same time, prominent Japanese hospitality operators have been active in the area. Hoshino Resorts added a new property to its luxury portfolio, while Oedo Onsen Monogatari refurbished and reopened a renovated hotel in July of the previous year. These projects contribute to a growing variety of lodging options, from upscale resorts to traditional ryokan-style stays focused on thermal bathing experiences.

Overall capacity in Beppu’s hotel market is expanding: the total number of rooms is expected to rise from around 4,400 to approximately 5,030 within the next year. This increase reflects both new builds and renovations aimed at meeting rising demand.

One notable example of strong performance is the Suginoi Hotel & Resort, which offers 647 rooms and has reported exceptionally high occupancy since 2014. Its sustained success underscores Beppu’s appeal as a year-round destination for travelers seeking hot springs, cultural experiences, and scenic coastal views.

As the city continues to develop its tourism infrastructure, improvements in accommodation options and higher-profile hotel openings are likely to make Beppu even more accessible and attractive to visitors from Japan and abroad. The combination of world-class onsen resources and expanding hospitality choices positions Beppu to maintain steady growth in tourism while preserving the unique thermal attractions that define the area.