Weekly Hotel Industry Asia Pacific News Roundup from HVS

CLAS to Divest Citadines Central Shinjuku Tokyo for JPY25 Billion in Japan

CapitaLand Ascott Trust (“CLAS”), the largest lodging trust in Asia Pacific, managed by wholly owned subsidiaries of Singapore-based CapitaLand Investment Limited, has proposed the divestment of Citadines Central Shinjuku Tokyo for JPY25 billion or approximately JPY121.4 million per key. The 206-key property, completed in 2008, is located approximately a 10-minute walk from JR Shinjuku Station, one of Tokyo’s major transport hubs served by five railway operators. The proposed sale represents around a 100% premium over the property’s book value and a 40.4% premium to the average of two independent valuations. The exit earnings before interest, taxes, depreciation, and amortisation (“EBITDA”) yield is approximately 3.2%, with the divestment expected to generate a net gain of JPY5.7 billion after tax and net proceeds of around JPY21 billion. The buyer is ML Estate Co. Ltd., a wholly owned subsidiary of Japan-based Mizuho Leasing Co., Ltd. The transaction is expected to be completed in the fourth quarter of 2025. 

Hotel Ease Mong Kok Sold for HKD435 Million for Student Housing Redevelopment in Hong Kong

Harmonia Crest Limited, a joint venture company owned 15% by Prime Resonance, an indirect wholly owned subsidiary of Hong Kong-based developer, Wang On Properties, and 85% by ADPF Oregon, a fund indirectly managed by US-based investment manager, TPG Angelo Gordon, has acquired Hotel Ease Mong Kok for HKD435 million. This translates to approximately HKD2.2 million per key for the 199-key property. It is understood that the property was previously owned by Hong Kong-based Stan Group (Holdings) Limited. Located in the heart of Kowloon, the asset is next to Yau Ma Tei MTR Station and is surrounded by a dense mix of commercial, retail, and residential developments. Completed in 2014, the 30-storey property spans approximately 4,552 square metres of gross floor area, and offers seven different room types, and a car park. The new buyer plans to convert it into an international post-secondary education hub, capitalising on the site’s strong transport connectivity and proximity to major academic institutions and cultural amenities in the Yau Tsim Mong District. 

Ichigo Hotel REIT Acquires Two Hotels for JPY5.7 Billion in Okinawa and Toyama, Japan

Japan-based Ichigo Hotel REIT Investment Corporation (“Ichigo Hotel REIT”) has acquired two hotels in Okinawa and Toyama for a total of JPY5.7 billion. The assets include the 135-key Smile Hotel Miyakojima (“SHM”) in Okinawa, acquired from Japan-based First Brothers Capital Co., Ltd. (“First Brothers Capital”) for JPY2.3 billion, and the 227-key Hotel Enoe Toyama (“HET”), acquired from an undisclosed third-party Japanese company for JPY3.4 billion. This translates to approximately JPY17 million per key and JPY15 million per key for SHM and HET, respectively. SHM, originally completed in 1992 with a new building added in 2021, is located along Nishizato Dori, a popular tourist thoroughfare near Miyakojima’s beaches and just a 15-minute drive from Miyako Airport. HET, built in 2004, is centrally located in Toyama City and within walking distance of Aramachi tram station and close to government offices and commercial amenities. Both properties are freehold and will be leased to a single tenant under a master lease agreement. Post-acquisition, Ichigo Hotel REIT’s portfolio will comprise 31 hotels with a total acquisition value of JPY73.4 billion. 

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