Karakami HOTELS & RESORTS Pioneers Complete Automation in Hotel Operations with AI

Karakami HOTELS & RESORTS Embarks on AI Innovations

Karakami HOTELS & RESORTS, headquartered in Shibuya, Tokyo, under the leadership of CEO Masato Karakami, is set to revolutionize the hotel industry. The company is embarking on the development of a proprietary AI agent designed to achieve complete automation in hotel operations. Additionally, it has launched a roll-up strategy aimed at incorporating small hotels and ryokans into its expanding portfolio.

Previous Initiatives

The company has already made significant strides through its group subsidiary, YAMATO Hotel & Residence, which manages several properties like “Village X,” a brand focusing on remote work and leisure stays in nature. This brand currently includes ten locations, with more in development. Furthermore, their private members-only hotel, “YAMATO STAY,” aims to offer a premium stay experience across twelve locations under development.

In these projects, Karakami has been promoting digital transformation (DX) in hotels through innovations like remote operations, unmanned check-in processes, and dynamic pricing strategies. They have also provided management consultancy services to over ten accommodation facilities, showcasing their commitment to operational improvement.

Future Directions

The company envisions integrating the new AI agent, dubbed the browser agent, into both facilities they operate and those they support through consulting. This will enable automation across various operational tasks and enhance profitability. In addition to operational support for small hotels and ryokans, the roll-up strategy will encompass management contracts and consultancy services aimed at aiding small-scale establishments in leveraging AI for more effective multi-site operations.

Overview of the AI Agent

The new AI agent is designed to manage various back-office hotel operations automatically. It will handle tasks such as pricing strategies, reservation management, cleaning coordination, OTA (Online Travel Agent) advertising management, and financial operations. Such automation will significantly alleviate the operational burdens faced by small hotels and ryokans, thereby maximizing their management efficiency.

Expected Features of the AI Agent

- Automated generation of pricing logic and revenue plans based on market data and surrounding demand
- Reduction of back-office tasks through automated workflows
- Increased profitability for guests booked through OTAs due to improved OTA media management

Currently, the group is testing the AI agent in its facilities, with plans to progressively scale successful outcomes across its portfolio.

Roll-Up Plans

By 2030, Karakami aims to roll up operations involving up to 100 facilities, creating a next-generation hotel group that synergizes physical assets with advanced technology.

Company Overview

Company Name: Karakami HOTELS & RESORTS, Inc.
CEO: Masato Karakami
Location: 10th Floor, Miyamasuzaka Place, 2-16-5 Shibuya, Tokyo
Corporate Website: Karakami Hotels
Group Company Website: YAMATO Hotel & Residence