Japan Hotel REIT Buys Two Hotels

Main Photo: Hilton Tokyo Odaiba

Date: January 2019

Location: Hilton – Minato-ku, Tokyo, Japan, 4 star; Oriental Express – Minami area of Osaka, 3 star.

Name: Hilton Tokyo Odaiba and Hotel Oriental Express Osaka Shinsaibashi (opened January 2018)

No. of Keys: Hilton – 194; Oriental Express – 124

Seller: Hotel Management Japan Co., Ltd. HMJ Group consists of HMJ and its subsidiaries (joint-stock corporations in which over 50% of total shares issued and outstanding are held by HMJ).

Buyer: Japan Hotel REIT. The REIT will issue new investment units to help fund the acquisitions. Both hotels will be leased long term to existing lessees, under hybrid lease agreements. The Japan Hotel REIT is headed up by Kaname Masuda, Executive Director.

Their Asset Management Company, Japan Hotel REIT Advisors Co., Ltd is run by Hisashi Furukawa, Representative Director and President.

The 14-story Hilton is located on Tokyo’s water-front with few neighbouring buildings that obstruct its view, it provides a beautiful ocean panorama of the Tokyo Bay front. Each guest room is at least 33m2 wide, providing adequate space for use by two or more persons.

In addition, the hotel is also equipped with various facilities including Japanese, Western
and Chinese restaurants, a lounge, conference rooms, wedding halls, a fitness gym, a swimming pool and a spa, as well as large and small banquet halls, that can accommodate up to 1,600 people.

The Hotel Oriental Express Osaka Shinsaibashi is located in Osaka’s Minami area, which includes mainly Namba and Shinsaibashi, is a representative entertainment and shopping district in Osaka City.

It provides convenient access to the major neighbouring tourist areas as the nearby Shinsaibashi Station of Osaka Metro’s Midosuji Line is approximately 50 minutes to each of JR Kyoto Station, JR Nara Station, JR Kobe Station, etc. In addition, Namba Station is a gateway to Kansai International Airport, approximately 45 minutes away by Nankai Airport Line rapid train.

The hotel is a newly-built hotel opened in April 2018.

All of the hotel’s guest rooms are double or twin rooms (*) with high twin room ratio of 86.3%, the hotel is able to accommodate multiple people in all rooms, and therefore, JHR believes the hotel is well-positioned to meet increasing demand from inbound visitors.

Moreover, as guest rooms are equipped with the Handy Phone, guests have free access to Wi-Fi, telephone and the Web, and there is a laundromat and a cafe area exclusively for use by guests. As such, the hotel provides convenient facilities dedicated to guests and
meets various needs from domestic and inbound guests.

The hotel has been operated by HMJ group since its opening, and it is the third hotel operated by HMJ group. The other two are Namba Oriental Hotel and Holiday Inn Osaka Namba.

Price: JPY62.4bn (US$57735,650) for the Hilton and JPY2.73bn (US$ 25,258,461) for Oriental Express

Price per Key: JPY32,164,950 – around £231,316 for the Hilton; JPY2,201,613 – around £158,278 for the Oriental Express.

THPT Comment: Japan Hotel REIT is a major player in Japan, with some 50 hotels.

First Seen: JRH website

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