Hotels & Hospitality Group has advised Ichigo Estate on the successful sale of the former OneFive Osaka Midosuji Hotel to a separate account investor advised by Travelodge Hotels (Asia) Pte. Ltd. (“TLA”). The 14-storey hotel is located in the central Hommachi district of Osaka and features 136 rooms.

Post-acquisition, the hotel will undergo an extensive refurbishment to capitalize on the recovery of the Japanese hospitality industry post-COVID, with a view to reopening in Q4 2022 as a Travelodge. TLA successfully led the acquisition process and due diligence, working with third party professionals in Japan to complete the transaction in the face of current border restrictions.

“We are delighted to have advised Ichigo Estate on this transaction and bring in another first- time overseas buyer to the Japan hotel sector. Despite the difficult trading conditions and closed borders, investors with a long-term investment horizon continue to see Japan as one of the most enticing hotel investment destination in Asia,” says Charlie Macildowie, Senior Vice President, Investment Sales, Asia Pacific, JLL Hotels & Hospitality Group.

JLL notes that a flurry of other Japan hotel transactions were signed or completed by international investors in Q4 2021 after the state of emergency was lifted; demonstrating stronger confidence in the recovery and long term fundamentals of the country.

In November 2021, private equity firm BPEA Real Estate acquired a 305-room hotel in Midosuji, Osaka and will rebrand the hotel as a Holiday Inn Express. In December, Chinese group Fosun acquired Kiroro Resort in Hokkaido for a reported JPY15 billion from Thai company Property Perfect.

JLL is forecasting total hotel investment volume of USD2.5 billion for Japan in 2022, driven by a few large portfolio transactions and an expected increase in investor confidence once the recent Omicron wave is controlled. This would represent an increase of 20% over 2021 investment volumes.