SC Capital Partners Group ("SC Capital Partners"), a leading Asia Pacific real estate investment manager, has successfully acquired a 165-room strategic hospitality asset in Kagoshima, Japan, on behalf of its Japan Hospitality Fund I.

The hotel is situated in the heart of Kagoshima, the capital city of Kagoshima Prefecture, which is renowned for its rich cultural heritage and vibrant tourism industry. Located in the southernmost part of Kyushu, Kagoshima is home to various historical and cultural landmarks. The city is also well-connected by an extensive road and rail network, including the Shinkansen, making it easily accessible for both domestic and international travellers. The growing number of flights into Kagoshima Airport further enhances visitor arrivals, supporting the region’s expanding tourism industry. In addition to its appeal to tourists, the city also benefits from steady local accommodation demand driven by government offices, hospitals, corporate headquarters, and educational institutions.

SC Capital Partners plans to implement a comprehensive rebranding strategy, operational enhancements, refurbishment, and asset enhancement initiatives to elevate the hotel’s performance and better capture the increasing demand from leisure travellers. As part of its repositioning strategy, the hotel will be rebranded as an Oriental Express hotel, a brand under Hotel Management Japan Co. Ltd. ("HMJ"), further strengthening its market positioning and guest experience.

HMJ an affiliated entity of the SC Capital Partners Group and one of Japan’s largest multi-brand hotel operators, will take on the hotel’s operations. Leveraging its extensive expertise in local hotel asset management and operations, HMJ will play a critical role in optimizing the asset’s performance and capitalizing on Japan’s hospitality recovery.

SC Capital Partners has built a strong track record in Japan’s hospitality sector since 2010, having invested over $1 billion through its private funds strategies, encompassing 59 hotels and over 13,000 rooms. The firm’s diverse investment activities include hotel acquisitions and dispositions, the acquisition and merger of two hospitality J-REITs, and the acquisition of controlling stakes in REIT managers and a hotel operating company.

SC Capital Partners Group is also the majority owner of Japan Hotel REIT Advisors ("JHRA"), the asset manager of Japan Hotel REIT Investment Corporation ("JHR"). JHR is one of the largest hospitality REITs in Japan, with a portfolio of 51 hotels and 14,130 rooms in its portfolio, and total acquisition price exceeding $3.4 billion).

Beyond hospitality, SC Capital Partners has also made investments across multiple real estate sectors in Japan, including multifamily, student accommodation, corporate housing, office, retail, and credit.

Suchad Chiaranussati, Chairman and Founder of SC Capital Partners Group, commented: "We are pleased to further strengthen our presence in Japan’s hospitality sector, leveraging our deep local expertise and extensive platform. We remain confident in the market’s long-term growth potential and believe that, with the right opportunities, we can continue to create value. Our established network and track record, built over the past 15 years, places us in a unique position to capitalise on opportunities in this highly sought-after sector."

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