Japan Hotel REIT Investment Corporation has announced that it will acquire Hyatt Regency Tokyo in Japan.
Hyatt Regency Tokyo is a 28-story hotel with 712 guest rooms. Odakyu Electric Railway had transferred the property in 2023 to a special purpose company funded by investment fund KKR and Gaw Capital.
The planned acquisition price is 126 billion yen. The acquisition will be completed as of March 13. The company will raise up to approximately 69.5 billion yen through the issuance of new investment units and a secondary offering of units in Japan and overseas, and 65 billion yen through bank borrowing.
Although a large-scale renovation costing 9.4 billion yen has already been completed, after the acquisition the company will newly install extended-stay type guest rooms on the 5th floor, where there is an unused former wedding facility, and will also integrate 34 guest rooms of 24 square meters with low occupancy by combining two rooms into one. The additional investment amount will be approximately 1.5 billion yen.
The dilution of distributions per investment unit will be addressed by reversing negative goodwill, and the forecast distribution amount for the fiscal period ending December 2026 will be maintained.
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