Hulic to redevelop Hands Shibuya site into hotel after 2026 closure

Hulic plans to redevelop the site of the Hands Shibuya store into a hotel after the landmark retail property closes in November 2026.

The project marks another shift in Shibuya from large-format retail toward tourism-oriented development. The hotel is expected to open sometime in or after 2030.

After its lease agreement with Hands ends, Hulic will demolish the existing building and construct a new one.

Photo by Adam German.

According to the Nikkei Shimbun, Hulic plans to open a hotel under its high-end THE GATE HOTEL brand, targeting growing demand from foreign visitors in one of Tokyo’s most internationally recognized districts.

The lower floors are expected to include commercial retail space, creating synergies between hotel guests and shoppers.

The current building was completed in September 1978, when the former Tokyu Hands Shibuya store opened. The site covers about 1,800 square meters.

The Tokyu Hands name referred to the chain’s former parent company, the Tokyu Group keiretsu. Home improvement retailer Cainz acquired the brand in March 2022 and later renamed the chain Hands.

Hulic acquired the land and building in 2013 and had been considering redevelopment as the property aged.

Shibuya is one of Japan’s leading commercial and entertainment districts and a major destination for international tourists.

While the area draws heavy daytime foot traffic, it has long faced a shortage of hotels with the price range and functions needed to meet foreign visitor demand. That has contributed to shorter nighttime stays.

The redevelopment also reflects a broader transformation in Shibuya.

Large-format retailers that once symbolized the district’s shopping-centered identity are shrinking, while hotel projects aimed at international tourism demand are advancing.

Seibu Shibuya, the district’s only remaining standalone department store, is set to close at the end of September.

Mitsubishi Estate has attracted TRUNK(HOTEL), operated by Take and Give Needs, to a Dogenzaka redevelopment scheduled for completion in 2027.

Tokyu and other partners are also redeveloping the former Tokyu Department Store flagship site into a high-rise mixed-use building scheduled for completion in fiscal 2029.

The project will include The House Collective, a luxury hotel brand operated by Hong Kong’s Swire Hotels, marking its first entry into Japan.

Hulic has made tourism one of its growth pillars and identified Shibuya as a priority development area.

By around 2033, the company plans to expand its hotel portfolio to roughly 1,700 rooms across 11 buildings, including the former Hands Shibuya site.

The Hands redevelopment is likely to become one of the clearest examples of how Shibuya’s commercial core is being reshaped around tourism, nightlife and higher-value visitor spending.

Source:

Nikkei Shimbun (Japanese only; paywalled)