Park Hotel Group JV buys Newly Built Asset in Kyoto, Japan

Main Photo: The Kyoto Boutique hotel as is

Date: December 2020

Location: Kyoto, Japan

Name: Kyoto Boutique Hotel, to be rebranded Park Hotel Kyoto

No. of Keys: 114

Seller: Angelo Gordon and Mizuho Real Estate Management.

Buyer: Singapore-based Park Hotel Group closed a cross-border transaction for the newly built hotel in Kyoto, Japan. The group will formally take ownership of the Kyoto Boutique Hotel, an asset featuring 114 contemporarily designed rooms and a ground-floor bar and restaurant catering to the strong footfall outside the hotel.

A joint venture between Park Hotel Group and Apricot Capital purchased the freehold boutique property from Angelo Gordon and Mizuho Real Estate Management. The asset has a gross leasable area of 3,276 square meters (35,262 square feet).

“Confidence in Japan’s hotel market has remained high throughout a challenging year, and the long-term fundamentals of both the tourism and business markets remain favourable as we look beyond COVID. We’re delighted to advise on such a unique transaction and bring together the full strength of our regional platform to deliver an optimal result for all parties,” said Nihat Ercan, managing director, head of investment sales, Asia Pacific, JLL Hotels & Hospitality Group, who handled the deal.

Charlie Macildowie, senior vice president, investment sales, Asia Pacific, JLL Hotels & Hospitality Group, added, “Regional hotel groups have long eyed a greater presence in the Japanese hospitality space and are actively exploring strategic expansion in this market. Embracing innovation solutions like virtual inspections further reinforces the attractiveness of the country and the desire to gain a more immediate foothold in Japan.”

Upon the transaction completion, the hotel will be rebranded as the Park Hotel Kyoto, representing the second hotel in Japan for the Singapore-based group. Significantly, the city is largely dominated by domestic Japanese brands and the arrival of Park Hotel Group will provide a differentiated offering for the growing number of international visitors to Kyoto.

THPT Comment: Good to see hotel confidence still strong in Japan, despite having lost some major sporting events this year.

First Seen: Institutional Real Estate

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