JLL advises on JPY3.1 billion sale of Japan hotel portfolio

TOKYO, 12 September 2023 – JLL’s (NYSE:JLL) Hotels & Hospitality Group today announced that it has advised a domestic GK on a successful portfolio sale of three hotels in Japan. The portfolio of hotels are located in Nishi Akashi, Matsuyama, and Naha, Japan, and has been sold to Nippon Accommodations Fund Inc. (NAF), a publicly traded Japanese real estate investment trust (J-REIT), for JPY3.1 billion (approximately $21.2 million).

According to JLL, the three existing hotels have been acquired fee simple with the existing master leases to be assumed by the new buyer. 

“We continue to see robust investment appetite for hotel assets throughout Japan. These three hotels are well positioned to provide stable income to the investor as Japan continues to experience a strong recovery in tourism and travel. JLL is delighted to have advised on this exciting portfolio transaction and assisted NAF in securing these three hotels,” says　James Yukio Abe, Managing Director, Head of Investment Sales, Japan, JLL Hotels & Hospitality Group.

NAF is a Japan-based J-REIT focused on achieving sustainable growth and stable mid- to long-term earnings through investment in rental housing and a portfolio of hospitality facilities. The investment areas of rental housing include the Tokyo area and regional core designated city areas and hospitality facilities in major cities across the country and their outskirts. The J-REIT’s asset manager is Mitsui Fudosan Accommodation Fund Management Co., Ltd.

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. According to JLL, the first half of 2023 saw JPY203 billion ($1.39 billion) of hotels change hands in Japan with. the six-month volume representing a 65.4% increase in the first half of 2022. JLL’s expects this trend to continue into the second half of 2023 with several transactions already closed or agreed.