LogProstyle Inc. Announces Land Acquisition for Prostyle Ryokan Tokyo Asakusa II
LogProstyle Inc. (NYSE American: LGPS) (“LogProstyle” or the “Company”), a Tokyo-based developer and operator of premium hospitality and residential properties, today announced the acquisition of land in Asakusa, Tokyo, for the development of its second hotel in the district — Prostyle Ryokan Tokyo Asakusa II. Scheduled to open in October 2028, this new development marks another important milestone in LogProstyle’s long-term growth strategy and underscores its continued commitment to Japan’s tourism and hospitality sectors.
The new ryokan will be situated on a 280.88 square meter site in the heart of Asakusa, one of Tokyo’s most historically significant and culturally vibrant neighborhoods. Known for its fusion of Edo-period charm and contemporary Tokyo dynamism, Asakusa remains one of Japan’s most visited destinations for both domestic and international travelers. By establishing its second ryokan in this iconic location, LogProstyle strengthens its footprint in one of Tokyo’s top-performing tourism submarkets while leveraging operational synergies between its existing and new properties.
Strategic Expansion in a Core Tourism Market
With this latest acquisition, LogProstyle’s hospitality portfolio will expand to five hotels across Japan’s leading tourism and business hubs. The addition of Prostyle Ryokan Tokyo Asakusa II further aligns with the Company’s strategic objective to expand its ryokan and hotel operations, capitalizing on the resurgence of inbound tourism and the growing demand for authentic, locally inspired accommodation experiences.
The site for Prostyle Ryokan Tokyo Asakusa II is located approximately 300 meters from the existing Prostyle Ryokan Tokyo Asakusa, providing a unique opportunity to create a dual-property operational model. This proximity will allow for shared management resources, coordinated marketing, and optimized staffing, leading to improved cost efficiency and service consistency across both hotels. The development reflects LogProstyle’s focus on portfolio optimization, asset scalability, and market-specific clustering — key drivers of its sustainable growth strategy.
Project Overview and Key Specifications
Prostyle Ryokan Tokyo Asakusa II will be developed as a 10-story structure above ground, offering a total building area of approximately 1,933.80 square meters. The property is designed to feature 36 guest rooms, each equipped with premium amenities and traditional design elements that celebrate Japanese culture and craftsmanship. Notably, every room in the new ryokan will include a private open-air bath, enhancing the guest experience and setting a new benchmark for luxury accommodation within the Asakusa market.
This design choice represents a significant upgrade from the existing Prostyle Ryokan Tokyo Asakusa, where only 21 of 43 rooms currently include private baths. As a result, the Company projects a higher Average Daily Rate (ADR) of JPY 45,975 for the new property, compared to JPY 38,414 at the current location.
Construction for Prostyle Ryokan Tokyo Asakusa II is scheduled to begin in November 2026, with completion expected in July 2028. Following a period of final testing, training, and operational preparation, the ryokan is anticipated to open its doors in October 2028.
Comparison Between Existing and New Properties
| Category | Prostyle Ryokan Tokyo Asakusa II (Planned) | Prostyle Ryokan Tokyo Asakusa (Existing) |
|---|---|---|
| Location | 6-5-2 Asakusa, Taito-ku, Tokyo, Japan | 2-12-11 Asakusa, Taito-ku, Tokyo, Japan |
| Approximate Land Area | 280.88 m² | 327.99 m² |
| Building Area | 1,933.80 m² | 2,251.96 m² |
| Construction Plan | 10 stories above ground | 13 stories above ground |
| Number of Guest Rooms | 36 | 43 |
| Target ADR (Average Daily Rate) | ¥45,975 | ¥38,414 |
| Target OCC (Occupancy Rate) | 72% | 81% |
| Scheduled Construction Start | November 2026 | — |
| Expected Completion | July 2028 | — |
| Expected Opening | October 2028 | — |
Market Context and Tourism Outlook
Japan’s tourism industry continues to demonstrate robust recovery, driven by relaxed border restrictions, favorable currency trends, and renewed global interest in cultural and experiential travel. The Asakusa district, in particular, has remained one of Tokyo’s most resilient submarkets, attracting millions of visitors annually with landmarks such as Senso-ji Temple, Nakamise Shopping Street, and Sumida Park.
In recent years, Asakusa has also seen increased investment in boutique hotels, hospitality innovations, and community revitalization efforts aimed at preserving its heritage while embracing sustainable urban growth. LogProstyle’s decision to invest further in Asakusa reflects a data-driven confidence in the area’s long-term growth potential.
According to LogProstyle management, the combination of cultural authenticity, high guest demand, and consistent occupancy rates has made Asakusa an ideal location for developing ryokans that cater to both domestic and international travelers seeking a refined yet traditional lodging experience.
Enhancing Brand Value and Operational Synergies
By developing a second ryokan within such close proximity to its existing property, LogProstyle aims to unlock multiple operational advantages. Shared logistics, cross-property reservations, and unified marketing strategies will help streamline operations while maintaining brand consistency. Additionally, having two properties in the same area allows the Company to better serve varying guest segments — from leisure travelers seeking premium experiences to budget-conscious tourists exploring local attractions.
The project also supports LogProstyle’s broader vision to position the “Prostyle Ryokan” brand as a leader in modern Japanese hospitality, combining contemporary comfort with traditional omotenashi (hospitality) values. The new development will feature refined architectural elements inspired by Edo-period design, natural materials, and sustainable construction practices, aligning with LogProstyle’s ongoing commitment to environmental responsibility.
Financial and Operational Outlook
While the Company expects an initial occupancy rate of approximately 72%, management anticipates gradual improvement as the hotel establishes its market presence and brand recognition. The ADR target of JPY 45,975 reflects the property’s upgraded amenities and elevated guest experience. These projections are based on historical data from comparable ryokan properties, local tourism trends, and forward-looking market analysis.
As with all forward-looking statements, the Company notes that actual performance may differ materially due to factors such as construction timelines, market dynamics, foreign exchange fluctuations, and regulatory conditions.
Commitment to Sustainable Growth
The Prostyle Ryokan Tokyo Asakusa II project exemplifies LogProstyle’s balanced approach to expansion — combining strategic site selection, disciplined financial management, and a long-term commitment to community development. The Company remains focused on enhancing its portfolio value while delivering consistent shareholder returns through prudent investments in Japan’s high-growth hospitality sector.
As Japan continues to strengthen its position as a top global travel destination, LogProstyle intends to pursue additional opportunities across key urban and regional markets, reinforcing its role as an innovator in design-driven, culturally rooted hospitality experiences.
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