Construction of Kobe City Hall No. 2 Building Reorganization Project Begins in Full Swing

ORIX Real Estate Corporation (Headquarters: Minato-ku, Tokyo; President: Tatsuya Kitamura), as the lead company of a consortium comprising Hankyu Hanshin Properties Corporation, Kanden Real Estate Development Co., Ltd., DAIWA HOUSE INDUSTRY Co., Ltd., Fuyo General Lease Co., Ltd., Takenaka Corporation, and Yasuda Real Estate Co., Ltd. (hereinafter "the Consortium"), announces the full commencement of construction for the "Reorganization Project of Kobe City Hall No. 2 Building"※1.

Exterior Perspective Image※2

The project※3 aims to redevelop the existing Kobe City Hall No. 2 Building, which has been in service for over 60 years and has suffered from aging infrastructure. By leveraging private-sector expertise, the redevelopment will modernize the municipal facility while capitalizing on its strategic location between Sannomiya Station and the waterfront area to create vibrant urban spaces and promote domestic and international visitation and exchange. Alongside the start of construction, it has been confirmed that Hilton’s luxury brand, "Conrad Hotels & Resorts" (hereinafter "Conrad"), will open on the upper floors—marking its first presence in Hyogo Prefecture.

Through collaboration between the Consortium and Kobe City, the project will continue to foster global, societal, and local connections (Connect), striving to create a hub that drives Kobe’s future through exchange and innovation.

※1 Press Release dated August 31, 2022: Selection as Developer for the “Reorganization Project of Kobe City Hall No. 2 Building” (https://www.orix-realestate.co.jp/news/2022/08/release_002250.html)

※2 All visual renderings used in this press release are based on current plans and may be subject to change.

※3 Source: City of Kobe, “Reorganization of City Hall No. 2 Building” (https://www.city.kobe.lg.jp/a55197/shise/kekaku/jutakutoshikyoku/kobetoshin/2goukansaiseibi.html)

Key Features of the Project

1. Revitalization between Sannomiya and the Waterfront Area

(1) Enhancing Circulation in the Surrounding Area

The site is strategically located at the midpoint between Sannomiya, a bustling commercial district, and the historic foreign settlement and redeveloping waterfront area. Leveraging this position, the project will introduce public functions that foster new encounters and community building, alongside private-sector attractions that showcase Kobe’s unique charm to domestic and international visitors. Seamless connections to underground walkways and internal passageways enabling through-access will enhance the walkability and urban circulation of central Kobe.

(2) Creation of Accessible Public Spaces

The lower levels will feature a publicly accessible space tentatively named the "Citizen Use Area," designed to reflect Kobe’s rich forest resources with warm wooden textures and greenery, suitable for events, relaxation, and social interaction. Additionally, open spaces such as a bright and welcoming front plaza and a sunken garden (semi-basement plaza) will be developed to encourage spontaneous visits by citizens and tourists alike.

Front Plaza of the (Tentative) Citizen Use Area (Image)

2. Building Layout and Functional Components

The lower floors will integrate city hall functions with commercial facilities and rooftop gardens, creating a dynamic environment where visitors can enjoy diverse activities, extend their stay, and explore the area.

The upper floors will house Hilton’s luxury brand "Conrad" and premium-grade office spaces. On the 4th floor, a conference facility featuring a ballroom and multiple meeting rooms of various sizes will be established to promote business networking and exchange.

Facilities to Promote Attraction and Exchange (Image)

(1) Hotel

Hilton’s luxury brand "Conrad," making its debut in Hyogo Prefecture, will open on the 4th floor and upper floors (20th to 28th). ORIX Real Estate Corporation, the lead hotel operator for the project, has signed a management agreement with Hilton, officially naming the hotel "Conrad Kobe." The hotel is scheduled to open in 2030.

"Conrad Kobe" will feature 136 guest rooms averaging 50㎡, along with a lounge, restaurant, bar, fitness center, spa, swimming pool, a ballroom of approximately 500㎡ for banquets and conferences, and multipurpose meeting spaces.

Reception Lobby and Ballroom (Image)

＜About Conrad Hotels & Resorts＞

Hilton’s luxury brand "Conrad Hotels & Resorts" currently operates 50 hotels across five continents. It inspires guests’ curiosity through intuitive service and deeply rooted local experiences. The brand’s signature "Conrad 1/3/5" program※4 offers opportunities to authentically engage with local culture and create meaningful connections. Carefully curated contemporary art throughout the property provides further inspiration for guests.

※4 Conrad Hotels & Resorts Revamps "Conrad 1/3/5" Program to Enhance Travel Experiences | Hilton Press Release

(https://prtimes.jp/main/html/rd/p/000000154.000033161.html)

(2) Office

Premium-grade office spaces will be developed with one of the largest floor areas in Kobe—approximately 500 tsubo (about 1,680㎡) per floor. Flexible layouts will allow for full-floor use or subdivision into units as small as approximately 45 tsubo (150㎡), accommodating diverse corporate needs. On the 9th floor, adjacent to the rooftop garden, a dedicated lounge for office workers will be provided, serving as a space for relaxation, third-place usage, and inter-company networking.

9th Floor Office Worker Lounge (Image)

(3) Commercial

Three floors—including the first and second floors facing Flower Road, and the first basement floor connected to Sanchika and the Kaigan Line’s Sannomiya-Hanachizu Station—will host a curated mix of unique dining, retail, and service establishments that highlight local charm. An open sunken garden linking above- and below-ground levels will further stimulate urban circulation and vibrancy in central Kobe.

Commercial Facilities Adjacent to the Sunken Garden (Image)

(4) City Hall

To enhance communication and adaptability to changing times, the city hall will feature open-plan workspaces without partitions, complemented by soundproof meeting rooms and internal staircases facilitating inter-floor interaction—creating a comfortable, productive work environment for staff. Environmentally, the city hall section will achieve performance equivalent to "ZEB-Oriented" standards and has obtained BELS certification (a third-party certification system indicating building energy efficiency).

Open-Plan Workspace (Image)

3. A Landmark Building with Excellence in Environmental and Disaster-Resilience Features

(1) Nighttime Landscape Symbolizing a Port City

The high-rise section housing the hotel will feature a high-quality, Kobe-inspired exterior design that harmonizes with the surrounding landscape and connects the city’s sea and mountain vistas.