Home sharing giant Airbnb is planning to launch a separate accommodation booking service in Japan offering traditional upscale hotels and inns.
It marks a strategic shift for Airbnb in one of its fastest growing markets.
Airbnb is reportedly teaming up with online travel service Evolable Asia for the service which will likely launch in the summer.
Evoluble Asia subsidiary Rakuda currently lists about 1,500 Japanese hotels and inns, many of which feature iconic Ryokan accommodation.
The new service will focus on services and amenities not currently available to typical Airbnb users such as onsen-style wellness facilities.
Evolable Asia will embark on a marketing drive to sign up more properties ahead of an official launch, the Nikkei Asian Review reported.
Airbnb users will be able to book rooms in the same way they do for home sharing, with the two companies splitting a 10% commission charged to the properties.