JLL advises on prime hotel sale in Tokyo’s Ginza district
Transaction highlights that the unprecedented appetite for high-quality Japanese hotels
TOKYO, 25 October, 2023 – JLL Hotels & Hospitality Group today announced that it has advised Daibiru Corporation (“Daibiru”) on the selection of a luxury hotel partner in the Sapporo Daibiru Redevelopment Project (Minami 2-jo Nishi 4-chome, Chuo-ku, Sapporo City, Hokkaido). The hotel is currently being developed by Daibiru in Sapporo, Hokkaido, and is scheduled to open in the spring of 2027.
The hotel partner, TRUNK(HOTEL), is a hotel brand based on the concept of socializing, developed by Take and Give Needs, a major Japanese wedding business company established in 2017. The tentatively- named TRUNK (HOTEL) SAPPORO will be the first luxury boutique hotel in Hokkaido, following the existing two in Tokyo.
The hotel will be located in the multi-purpose building complex consisting of office, hotel, and retail stores in the Sapporo Daibiru Redevelopment Project by Daibiru. It will consist of between 100-to-110 rooms and ancillary facilities.
JLL provided advisory services to Daibiru throughout the operator selection process for this hotel. In collaboration with the owner, the process involved identification, screening, and ultimately selecting an operator from both foreign and domestic options. Additionally, JLL advised Daibiru on key provisions to be included in the final agreement.
Kuraudo Ohashi, Executive Vice President, Head of Advisory, Japan, JLL Hotels & Hospitality Group, says, "The Japanese hotel market has been growing rapidly over the past several years and we’ve seen a clear recovery in demand from domestic and international travellers since October 2022. With the further recovery of inbound travel and the potential for market growth, we expect to see many new hotel developments in the Japanese market.
“Contract negotiations with hotel companies are becoming complex and extended, and it is important to develop a strategy for negotiating terms and conditions that match business policies, not only from a legal perspective but also from a financial and commercial standpoint. As it becomes necessary to keep up-to-date on the latest trends in contract negotiations, along with the knowledge of both domestic and international cases, advisory requests to JLL are increasing. We will continue to utilize our knowledge and expertise to provide optimal support that will satisfy our clients,” says Ohashi.
According to JLL Research, interest in Japanese hospitality assets remains buoyant on the back of the strong recovery and attractive borrowing costs in comparison to other markets across the world. JLL analysis shows that during the first half of 2023, JPY203 billion ($1.39 billion) of hotels changed hands in Japan with. the six-month volume representing a 65.4% increase in the first half of 2022. JLL expects this trend to continue into the second half of 2023 with several transactions already closed or agreed upon.
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $20.9 billion and operations in over 80 countries around the world, our more than 105,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.