OSAKA—Hotels are cropping up in the central part of the city and owners are banking on an influx of overseas visitors to fill rooms in what is already one of the country’s top tourist destinations.

Not only is the Osaka Kansai Expo 2025’s April start date a major driver of this building trend, but also plans to build a casino offers a tempting vision of a long-lasting jackpot.

The municipality’s development project for an integrated resort facility along with the clock ticking down to the world expo also appear to be fueling competition between hotel operators further.

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Independent of both, accommodation operators are already rushing to cater to the continuous influx of foreign tourists as Osaka boasts one of the highest occupancy rates for hotels in Japan.

According to the Japan Tourism Agency’s Overnight Travel Statistics Survey, the hotel occupancy rate for Osaka Prefecture was up nine points year on year to 76.3 percent in July, logging the leading percentage throughout the country.

Non-Japanese visitors accounted for 50 percent of all travelers who stayed overnight in Osaka Prefecture in July, second only to 54.7 percent for Tokyo and Kyoto.

Data from the Osaka Convention and Tourism Bureau likewise reveal that a record 9.23 million individuals arrived in Osaka Prefecture from abroad between January and August. The annual total is estimated to reach 14 million by the end of the year.

The surge in hotel openings will inevitably intensify competition, and operators will increasingly be motivated to develop their own unique tactics to outshine rivals.

Yoshiharu Hoshino, CEO of Hoshino Resorts Inc., which is responsible for the hotels such as Omo7 Osaka in front of Shin-Imamiya Station, views this development positively.

“Although many may consider the boosted supply (of guest rooms) in the Kansai region (around Osaka) as excessive for now, this situation itself should not be deemed unhealthy,” said Hoshino. “An oversupply can challenge operators failing to keep pace with the times, but it offers an opportunity for accommodations to transform into far better facilities at the same time.”

He continued, “Our strength lies in our strategy to work closely with local communities in creating tourism demand. We will be differentiating our hotels from foreign-affiliated rivals via that approach.”

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Among the area’s swathe of new accommodations is the Canopy by Hilton Osaka Umeda hotel. It began operations in late September at the Grand Green Osaka complex in the so-called Umekita 2 redevelopment area north of JR Osaka Station.

Joseph Khairallah—the group’s area vice president and head of Japan, Korea and Micronesia—is bullish despite the shrinking pool of workers in the accommodation industry. Khairallah said during the opening ceremony that the Hilton group has not yet been plagued by this issue, adding that its affiliated facilities across Japan can help one another.

Rather, Khairallah expressed his excitement about the significant level of recent demand for accommodations in the city.

Looking ahead, Khairallah emphasized that he does not feel there are any limitations to the number of hotels operational in Osaka and that the focus should be simply on pursuing opportunities to open appropriate brands’ facilities in proper locations.

He remarked that Osaka is a fascinating destination for both foreign visitors and Japanese travelers, also noting the diverse lineup of anticipated events. Goings on such as next year’s international fair, along with the city’s easy access to Kyoto and other sightseeing spots, are both boons.

The Hilton Osaka Umeda is far from the group’s only presence in the area.

Its lifestyle-based Canopy brand themes its boutique hotels’ designs, experiences and “stories” on regional cultures—its newest one is in Osaka, the sole Japan location.

In May, the Hilton group similarly opened DoubleTree by Hilton Osaka Castle northwest of the historic landmark. With Hilton Osaka and Conrad Osaka incorporated in 1986 and 2017, respectively, it currently operates facilities from four of its brands in the city.

Hilton intends to introduce Japan’s first Waldorf Astoria establishment, the group’s top luxury brand, on the south side of Grand Green Osaka in spring 2025, too.

Not too far from the complex to house the envisioned Waldorf Astoria Osaka, Hankyu Hanshin Hotels Co. is gearing up for the opening of Hotel Hankyu Gran Respire Osaka.

This is a high-end iteration of Hotel Hankyu Respire Osaka, which opened its doors nearby in 2019.

The “club floors” on its top stories feature guest rooms as large as 32 to 48 square meters. These swankier options are reportedly proving popular for their offered room types.

The Hotel Hankyu Gran Respire Osaka is scheduled to begin welcoming guests on March 21, 2025, and began accepting reservations on Oct. 21.

“Our goal is to achieve a guest room occupancy rate of 70 percent on our first day of business,” said a Hankyu Hanshin Hotels representative. “Bookings are pouring in as fast as anticipated.”