Japan hotel investment transactions rise by over 30% to USD2.9b in H1 2024

New hotel brands entered Tokyo, Kyoto, and Osaka.

In a recent report, Colliers revealed that hotel investment volume in Japan in the first half of 2024 neared USD 2.9 billion, up over 30% from the same period the previous year.

Since 2017, annual investment volume has trended in the USD 2.8 billion to 4 billion range with 2019 being the standout year at USD 5.4 billion.

Here’s more from Colliers:

The wave of notable transactions over the past two years include:

SC Capital Partners, Abu Dhabi Investment Authority (ADIA) and Goldman Sachs Asset Management’s joint venture acquisition of a 27-hotel portfolio from Daiwa House for approximately USD 900 million;
BentallGreenOak’s acquisition of Rhiga Royal Hotel Osaka and St. Regis Osaka;
KKR and Gaw Capital Partners’ acquisition of the Hyatt Regency Tokyo;
KKR’s purchase of Unizo's 14-hotel portfolio and platform;
AB Capital’s acquisition of several hotels including the 220-key APA Hotel Kamata-Eki Higashi;
Axe Management Partners’ USD 75 million acquisition of three WBF Hotels in Osaka from CapitaLand Ascott Trust,

There is keen interest from investors and operators to further develop Japan’s hotel market, with new brands entering Tokyo, Kyoto, Osaka, and other key leisure and resort destinations, as demand across the sectors, especially luxury and lifestyle, rises. More international operators are looking for a foothold, with brands such as Ace, Aman, Centara Grand, Mercure, Yotel, Garner, Janu and Kimpton entering the market.

The ryokan (traditional Japanese-style inn) sector is also garnering increasing investment interest as the appetite for experience-driven travel swells. Hyatt and Kiraku entered into a strategic joint venture to launch the new Atona brand – a collection of modern-style hot spring ryokans targeting global travelers, with the first openings scheduled for 2026 in Hakone, Yakushima and Yufu.

Also Read

What was Singapore’s largest hotel opening in the first nine months of 2024?

Sydney hotel supply to increase by 5.1%

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit

Top News

What was Singapore’s largest hotel opening in the first nine months of 2024?

This new hotel added 989 rooms to the market.

Commercial Hotel

2 hours ago

Melbourne’s Q3 retail completions finally outperform 10-year average

Completions have underperformed for six consecutive quarters.

Commercial Retail

2 hours ago

Sydney hotel supply to increase by 5.1%

Thanks to six new hotels currently under construction.In a report, JLL said Sydney has seen a total of 2,270 new rooms open since 2020, representing a 10.4% increase in total room stock.No new hotels have opened over the first three quarters of 2024, after a total of 816 rooms opened over 2023, representing a 3.5% increase in total room stock.Here’s more from JLL:There are currently six new hotels under construction in the CBD and fringe suburbs, which will add 1,173 rooms or 5.1% to existing stock. The next anticipated hotel opening is set to be The Eve Surry Hills Village (102 rooms), opening in the coming months.Trading performance continues to outperform 2019 levelsSydney RevPAR showed signs of improvement with a notable 5.3% increase from last year, and has now exceeded pre-COVID levels (YTD September 2019). Recovery continues to be driven by steady growth in both ADR and occupancy.Sydney transaction volume totalled AUD 338.3 million to YTD Q3 2024, including a handful of notable sales such as Courtyard by Marriott North Ryde, Novotel Parramatta, Woolstore 1888 by Ovolo and Holiday Inn Bondi Junction.Outlook: Demand continues to improve with a strong forecast for summer monthsSydney hotels are benefiting from an ongoing recovery in corporate/MICE demand, driven by the market’s reputation as a global business hub and key gateway city. The resurgence of international visitor numbers and Chinese tourists is anticipated to drive future demand.Despite challenging economic conditions and elevated borrowing costs, investor interest in Sydney remains robust. This can be attributed to favourable underlying fundamentals, the tightly-held nature of the market, limited new supply and a positive long-term outlook.Note: Sydney Hotels refer to all grades of accommodation and includes both hotels and serviced apartments.

Commercial Hotel

2 hours ago

Delhi prime residential sales more than double to 8,183 units in Q3