Concerns are rising about a possible oversupply of hotels in major cities across Japan, as companies rush to open new ones in the run-up to the 2020 Tokyo Olympics and Paralympics.

Hotels were previously estimated to be in short supply during the Olympic period, although many accommodation facilities are being constructed to accommodate the rapidly increasing number of overseas visitors to Japan.

But the latest estimate shows that Osaka and Kyoto will each have 10,000 more guest rooms than necessary by the time of the big sporting events.

Leading real estate firms are expanding their hotel businesses one after another to capitalize on the booming foreign tourism trade.

Nomura Real Estate Development Co. announced last fall that it will enter the hotel business with its new Nohga brand.

Under the plan, the first Nohga hotel will open within a few minutes’ walk of JR Ueno Station in Tokyo’s Taito Ward and have 130 guest rooms at rates of 20,000 yen to 30,000 yen ($183 to $274).

Nomura Real Estate Development is looking to bring a total of 2,000 rooms across Japan.

Meanwhile, Mitsui Fudosan Co. intends to raise the number of its hotel rooms from 5,800 to 10,000 by 2020.

Mitsubishi Estate Co. plans to open nine hotels in Tokyo, Osaka, Kyoto and Kobe by around 2021, and launched its new hotel brand, The Royal Park Canvas, this spring.

Tokyu Land Corp. currently operates its Tokyu Stay hotels only in the capital, but plans to open the hotel in other regions as well.

A succession of foreign-affiliated hotel operators are also making forays into the Japanese market.

The Hyatt group opened its Centric hotel in Tokyo's upscale Ginza district in January. Marriott International Inc. is expected to open a W Hotel in 2021 in Osaka, even though it just opened another hotel nearby in November.

Despite so many hotels being built throughout the country, it was estimated until fairly recently that many people will be unable to find places to stay when the Olympics begin.

Now, research firms are revising their forecasts.

A year earlier, Mizuho Research Institute Ltd. released an estimate saying Tokyo, Osaka and other areas would suffer from a shortage of hotels in 2020. But its latest prediction, released on Jan. 26, states an excess of 450,000 guest rooms will be available across the nation by 2020.

“There are rising concerns that the hotel market could experience a glut,” said Takayuki Miyajima, a senior economist at Mizuho Research Institute’s Economic Research Department. “The situation has already ended where new hotels are soon fully booked wherever they are built.”

According to the results of a survey released by leading real estate service provider CBRE Inc. in late January, hotels with a total of 80,000 guest rooms will have opened in Japan’s eight major cities of Tokyo, Osaka, Sapporo, Sendai, Nagoya, Kyoto, Hiroshima and Fukuoka between 2017 and late 2020.

The combined openings will raise the total guest room number 32 percent from late 2016 to 329,700, according to the findings.

The rate of increase is estimated to be highest in Kyoto at 57 percent, followed by 42 percent in Osaka. The number of hotel rooms is expected to rise 31 percent in Tokyo.

In the survey, hotel opening plans in the eight cities for 2017 through 2020 were studied. Rooms of new capsule hotels and "minpaku" private homes or apartments or new rooms of existing hotels were not included.

CBRE a year earlier predicted the room number will increase only by 65,000.

“Businesses have successively started building new hotels, as the occupancy rates and room charges rise due to the growing number of foreign visitors to Japan,” said Kiyoshi Tsuchiya, a CBRE director.

(This article was compiled from reports by Takeho Morita, Hideaki Ishiyama, Yoshikatsu Nakajima and Hiroki Ito.)