Hyatt Hotels Corporation and partners have raised capital commitments of ¥22 billion (US$149 million, €141 million, £110 million) for a fund that will be used to develop and renovate Japanese hot spring ryokan properties under the Atona brand.

The Atona Impact Fund is a real estate fund which will be managed as part of a joint strategic venture called Atona Co Ltd, formed in 2022 by a Hyatt affiliate and Kiraku.

Kiraku is a business strategy and asset management firm.

Takenaka Corporation, an architecture, engineering and construction contractor, is a co-investor in the Atona Impact Fund and will serve as a general partner.

Other Atona Impact Fund investors include Aratama Corporation Co Ltd, Cool Japan Fund Inc, Humble House Hotel Co Ltd, MUFG Bank Ltd.

The funds will be invested in high quality tourism assets with the goal of enhancing long-term value and the sustainable development of Japan's regions.

Atona brand

Atona Co Ltd will develop a collection of luxury onsen ryokans across Japan, targeting “sophisticated global travellers,” according to a statement.

Each Atona property will have between 30 and 50 guestrooms, onsen facilities that use natural hot spring water from the local landscape.

Wellness experiences will be centred around the onsen and curated activities at each property will highlight the unique culture of each region.

The hotels will also have open kitchens and bars that offer traditional, local cuisine.

Three future locations

Atona properties are planned in three locations across Japan:

• Yufuin

In the centre of Japan’s Kyushu island, in its Oita Prefecture, Yufuin is a hot spring resort town located at the foot of Mount Yufu and known for its rich seasonal scenery.

• Yakushima

Another location on Atona’s destination list is the subtropical island of Yakushima, off the southern coast of Kyushu and part of Kagoshima Prefecture. The island of hot springs and ancient forested mountains is a UNESCO World Heritage Site.

• Hakone

In the southwestern Kanagawa Prefecture, the hot spring town of Hakone has 20 types of spring water, pampas grass plains and a 17th Century cobbled highway. The town is easily accessible from Tokyo.

Competition

The Atona brand will directly compete with hotels operated by the Japanese hotel company, Hoshino Resorts.

Hoshino Resorts operates more than 60 properties, with the majority in Japan and additional locations in China, Taiwan, Bali and Guam.

It operates 23 properties under its hot spring ryokan brand, Kai, with another seven in the pipeline. Its 94-key Kai Kusatsu property is due to open in Q2 of 2026.

Hoshino Resorts also has a luxury hotel brand, Hoshinoya, with properties that often have their own upmarket spa and wellness offerings.

In 2024, Hoshino Resorts announced it would enter the US market by opening a 40-key ryokan in Sharon Springs, New York, US, in 2028.

Hoshino also owns a portfolio of other companies that are managed by other operators, including Hyatt.