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News Release

Tokyo

Jones Lang LaSalle Hotels Releases Three Thought Leadership Research Papers


[Tokyo, 12 May 2011]
 
 
Jones Lang LaSalle Hotels is pleased to announce the release of three thought leadership research papers on the Japan hotel trading and investment market. The three papers, i.e., Hotel Intelligence Japan 2011, Japan’s Hotel Market After The Quake and Hotel Investments In Japan have been prepared by the Tokyo based team of Jones Lang LaSalle Hotels.
 
The first paper, “Hotel Intelligence Japan 2011” is the annual update of the Japan tourism and hotel trading and focuses on Japan and the three key markets of Tokyo, Osaka, and Okinawa. Now in its 8 year, Hotel Intelligence Japan is part of Jones Lang LaSalle Hotels’ annual global country market overviews.

With increasing interest from investors and hotel operators on Japan post the recent earthquake event, the second paper “FocusOn: Japan’s Hotel Market After The Quake” examines the impact of the March earthquake on the country’s hotel market and the likely impact on both the hotel trading and investment markets.  

In an inaugural joint publication, Jones Lang LaSalle Hotels has teamed up with leading legal firm, Baker & McKenzie to collaborate on a paper addressing “ Hotel Investments in Japan – A Guide to Legal and Structural Issues”. Aimed at assisting and updating foreign investors on the perceived complexity and intricacies of the Japanese Hotel Investment markets, the paper serves as a basic guide to the key investment options available when acquiring hotel assets in Japan.

Speaking at the launch of the three research papers, Mr. Tom Sawayanagi, Managing Director Japan Jones Lang LaSalle Hotels noted, “Since the recent unfortunate events in Japan, we have received immense enquiries from our clients on the current state of the Japanese hotel and investment markets. With the release of these three thought leadership research papers, we hope to provide our clients with accurate update of the overall Japan hotel trading market, the impact of the recent events and on a more macro level, a simplistic but clear understanding of the legal investment structuring options for hotel assets in the country.


Mr. Sawayanagi added, “Like in all major natural disasters, Japan was not spared and we witnessed a significant fall in accommodation demand across the country during the initial three to four weeks following the quake. As at end of March 2011, Tokyo’s full service hotel sector has experienced a 38% decrease in revenue per available room as compared to the same month in 2010. However on a positive note, corporate demand is resuming and the domestic leisure segment is expected to progressively return with the onset of the summer holiday season. Having said this, international visitors continue to have safety concerns from the radiation leak at Fukushima and this segment of demand is likely to take longer to recover.” 

“Despite the challenges being faced by the Japanese hotel market, it is encouraging to note that Asian investors are still keen to invest in Japan”, said Scott Hetherington, Chief Executive Officer Asia, Jones Lang LaSalle Hotels. “Demand for prime hotel assets in Asia is strong. For instance, contracts were recently exchanged on the Crowne Plaza Hotel at Changi Airport for a total consideration of SGD293 million (USD243 million), representing the single largest hotel transaction in Asia Pacific in 2011 to date. Asian investors are still inquiring about investment opportunities in Japan even following the aftermath of the natural disaster, as Japan has a large and liquid real estate market and they believe in the long-term future of Japan”, continued Mr. Hetherington. “To respond to such investor appetite, “Hotel Investments In Japan” has been produced to offer a practical guide that de-mystifies initial concerns foreign hotel investors may have on issues ranging from transaction/holding costs for hotel acquisitions to structural requirements upon debt financing in Japan. We hope that this publication assists in foreign investors’ decision-making to acquire in Japan.”, added Mr. Sawayanagi.  

 

Hotel Intelligence Japan 2011 FocusOn : Japan’s Hotel Market After The Quake Hotel Investments in Japan
Japanese  / English