TUI Group has hit a new “geographic milestone” with the signing of its first hotel management agreement in Japan, strengthening its global growth strategy.

TUI Suneo Otaru is slated to open in 2029 and will be the group's easternmost hotel location. It introduces the company’s leisure hotel brands to the Japanese market.

TUI Group CEO Sebastian Ebel said: “TUI Hotels & Resorts' entry into Japan underscores our long-term commitment to expanding holiday experiences in new destinations and engaging new customers, particularly across Asia.

“With increasing demand for travel to Japan among our tour operators and cruise guests, expanding into the hotel sector represents a natural evolution of TUI’s presence in the region.”

Situated near JR Minami Otaru Station, the new property will provide easy access to local attractions such as the Otaru Steam Clock Tower, Sakaimachi Shopping Street, and the Otaru Canal.

The TUI Suneo Otaru hotel is set to offer 50 rooms, a lobby lounge, a restaurant, a bar, and a gym, with plans for future expansion to accommodate increasing demand.

TUI Group executive board member and Holiday Experiences CEO Peter Krueger said: “The new addition in Otaru will become TUI Group’s easternmost hotel location to date. This signing marks just the beginning; we are actively exploring further opportunities to expand our footprint in Japan through additional locations and the launch of more TUI hotel brands.”

It will join TUI's global portfolio of more than 400 leisure hotels and resorts, including 25 hotels across eight countries in Asia.

The TUI Suneo brand has a presence in Europe, North Africa, and Asia, with over 30 hotels.

TUI Group's commitment to Asia was highlighted in December 2024 when it revealed plans to more than double its hotel portfolio in the region over the next three years.

The expansion includes scheduled openings in Vietnam and China by the end of this year.