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.