SC Capital Partners (SCCP) has teamed up with Abu Dhabi Investment Authority (ADIA) and Goldman Sachs Asset Management (GSAM) to acquire a portfolio of 27 resort hotels in Japan from Daiwa House Industry.
The hotels are in major tourist destinations across Japan, capturing both domestic and inbound demand. The investment strategy will focus on increasing top-line revenue, rebranding initiatives, improving distribution channels, and refurbishment works.
The portfolio was acquired for approximately US$900 million and includes a total of 7,124 keys. Japan Hotel REIT Advisors Co. (JHRA) will play an integral role in capturing the recovery and maximising the further growth of the portfolio.
Suchad Chiaranussati, chairman and founder of SCCP Group, said: “This is a rare opportunity to acquire one of the largest and most prominent hotel portfolios in Japan. The extensive platform and network we have built in Japan over the last 13 years, particularly in the hospitality space, puts us in a unique position to capitalise on the long-term relative value of this highly sought-after sector.”
“Japan’s real estate sector continues to deliver superior returns, and the country’s hotel market is well positioned for growth from the rebound of travel,” added Mohamed Al Qubaisi, executive director, real estate department, ADIA.
Meanwhile, Takashi Murata, global co-head of GSAM is confident that these assets in Japan are “well-situated to benefit from the rebound” and through the implementation of their strategy, will be “positioned to attract further demand and generate differentiated returns”.