Embracing New Opportunities: Mori Trust's Vision for 2026 and Beyond

As we welcome the year 2026, Mori Trust's President, Miwako Date, extends New Year's greetings and reflects on the accomplishments of the past year. In 2025, the company witnessed significant growth across its core sectors: real estate, hotels and resorts, and investment, aligning with its long-term vision, 'Advance2030.'

Real Estate Market Resilience
The real estate sector has experienced a robust performance, especially within Tokyo's central five wards, where office vacancy rates have plummeted to around 2%, with A-class buildings reporting even lower rates at about 1%. This trend is expected to continue into 2026, driven by the diverse needs of companies facing labor shortages and evolving work styles. In October 2025, Mori Trust celebrated the completion of the second phase of 'Tokyo World Gate Akasaka', achieving an impressive office occupancy rate exceeding 95%, while enhancing its facilities with approximately 5,600 square meters of lush green spaces.

Tourism Sector Dynamics
In the tourism market, the influx of foreign visitors to Japan reached record highs, and demand for domestic travel amongst Japanese citizens is projected to surpass pre-pandemic levels of 2019. However, 2026 may introduce challenges as some regions could experience impacts from travel restrictions, particularly from China. Despite these potential obstacles, demand from diverse regions, including Europe and Southeast Asia, is anticipated to outpace the previous year, albeit moderated compared to recent explosive growth.

A highlight of 2026 marks the 50th anniversary of Mori Trust’s hotel operations, with the scheduled opening of '1 Hotel Tokyo' at Tokyo World Gate Akasaka. Over the years, Mori Trust has pioneered initiatives in Japan, including the establishment of the first hotel membership program for corporations, attracting international hotel brands, and developing self-branded hotels that utilize historical buildings to offer unique hospitality experiences. '1 Hotel Tokyo' aims to blend sustainability with luxury, delivering forward-thinking urban hospitality experiences.

Investment Strategy amid Global Changes
In light of rapidly changing global circumstances, Mori Trust is committed to creating a stable asset portfolio. In 2025, the company acquired '35 Hudson Yards', located in one of Manhattan's prime areas. This acquisition includes the unmatched wellness-focused luxury lifestyle hotel, 'Equinox Hotel', marking Mori Trust's first foray into the international hotel business.

Addressing the challenges posed by rising construction costs and labor shortages is crucial for fostering a sustainable business environment. Mori Trust plans to create flexible work systems while maintaining appropriate working hours to ensure a solid foundation for operations amidst evolving economic conditions.

Despite the uncertainties that lie ahead, Mori Trust is dedicated to collective efforts towards sustainable growth. The organization remains focused on navigating these challenges and upholding its commitment to enhancing Japan's international competitiveness through strategic developments in urban infrastructure and tourism resources.

About Mori Trust

Mori Trust Co., Ltd. is a comprehensive real estate developer headquartered in Minato, Tokyo. Under the leadership of President Miwako Date, the company engages in large-scale mixed-use urban developments and operates a diverse portfolio of hotels and resorts nationwide. As of March 2025, Mori Trust manages 52 buildings, including residential and commercial facilities, along with 36 hotels and resorts as of December 2025. The company is determined to strengthen Japan’s international competitive edge through innovative projects that leverage historical building preservation and development.