JLL advises on sale of 2ND by hotel androoms in Sapporo and Nagoya
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JLL advises on sale of 2ND by hotel androoms in Sapporo and Nagoya
The combination of the weak Yen and expectation of strong industry recovery, following the full re-opening of borders in October, is driving unprecedented interest in Japan hotel investment from across the globe.” says Charlie Macildowie, Senior Vice President, Investment Sales, Asia Pacific, JLL Hotels & Hospitality Group.
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JLL advises on sale of 2ND by hotel androoms in Sapporo and Nagoya
JLL’s (NYSE:JLL) Hotels & Hospitality Group today announced that it has advised GK Rio Grande on the successful sale of the former 2ND by hotel androoms Sapporo and the 2ND by hotel androoms Nagoya Nishiki to a joint venture comprising Travelodge Hotels (Asia) Pte. Ltd. (“TLA”) and a capital partner advised by TLA.
Post-acquisition, the hotels will undergo rebranding and reopen in early 2023 as Travelodge Sapporo Susukino and Travelodge Nagoya Sakae respectively. They represent the third and fourth hotels for TLA in Japan, following the successful opening of Travelodge Honmachi Osaka and the upcoming launch of Travelodge Kawaramachi Shijo Kyoto, capitalizing on the recovery of the Japanese hospitality industry post-COVID.
The Sapporo hotel, built in 2019, is located in Susukino, the entertainment and nightlife district of the city and features 212 rooms across 14 floors. The Nagoya hotel, built in 2017, adopts a central location in Nishiki, surrounded by the offices of several Japanese banks and financial institutions. The hotel features 211 rooms across 13 floors.
“We are delighted to have advised on this exciting transaction and bring in another first-time overseas investor to the Japan hotel sector. The combination of the weak Yen and expectation of strong industry recovery, following the full re-opening of borders in October, is driving unprecedented interest in Japan hotel investment from across the globe.” says Charlie Macildowie, Senior Vice President, Investment Sales, Asia Pacific, JLL Hotels & Hospitality Group.
JLL analysis shows that whilst Japan hotel transaction volumes for the YTD August 2022 increased by 16% over the same period last year, this was driven largely by the Seibu Portfolio which signed in June and will close by March 2023, representing 54% of total investment volumes for the YTD. Outside of this portfolio transaction there have been relatively few hotel sales, making this acquisition even more noteworthy in the current market context.
