HVS Asia Pacific Hospitality Newsletter - Week Ending 13 December 2024

Blackstone Acquiring Tokyo Garden Terrace Kioicho in Japan for USD2.6 Billion

US-based alternative investment firm, Blackstone Inc. (“Blackstone”), is acquiring Tokyo Garden Terrace Kioicho, a mixed-use complex in Chiyoda ward, Tokyo, from Japan-based Seibu Holdings Inc. for USD2.6 billion (approximately JPY400 billion). The transaction is expected to be completed on 28 February 2025. The complex comprises two high-rise office towers, 135 high-end residential units, food and beverage, and retail spaces, as well as the 250-key The Prince Gallery Tokyo Kioicho, a Luxury Collection Hotel. Japan-based Seibu Prince Hotels Worldwide Inc. will serve as the operator of the hotel. The hotel includes four food and beverage outlets, a business service centre, a board meeting room, a swimming pool, and a spa and fitness centre. It is directly connected to Nagatacho Station on the Namboku Line and is a 30 minutes’ drive from Haneda Airport. In the coming years, Blackstone plans to invest a few billion yen into the complex to refurbish or renew certain facilities.

GIC And Summit Hotel Properties to Purchase Two Hotels in the US for USD96 Million

Singapore-based sovereign wealth fund GIC Private Limited (“GIC”) is collaborating with US-based Summit Hotel Properties in a joint venture to purchase the 250-key Hampton Inn Boston-Logan Airport and the 149-key Hilton Garden Inn Tysons Corner in the US for a combined purchase price of USD96 million. This equates to approximately USD241,000 per key and reflects an 8.8% capitalisation rate based on the forecasted 2024 net operating income, highlighting the investment’s potential attractiveness. Situated 7.2 kilometres from Logan Airport, Hampton Inn Boston-Logan Airport will stand to benefit from the ongoing USD2 billion modernisation of the airport. Meanwhile, the Hilton Garden Inn Tysons Corner is situated 3.2 kilometres from the Dunn Lorring metro station and 16 kilometres away from Washington DC Convention Centre.

NRL Acquires Two Hotels in Australia for a Total of AUD38 Million

Australia-based national sporting organisation, National Rugby League (“NRL”), is acquiring 45-key ibis Styles Port Macquarie (“ISPM”) in New South Wales for approximately AUD15million and 85-key Mantra Terrace in Brisbane (“MTB”) for AUD23 million. This translates to AUD333,000 and AUD271,000 per key, respectively. The ISPM is sold by Australia-based Elanor Investors Group while the MTB is sold by an Australia-based consortium formed by 8Hotels founder, Capitel Group’s owner and investor, Jonathan Hasson. This represents the fourth and fifth hotel acquisition by the NRL within two years. The ISPM sits on a prominent beachfront and is a short stroll away from the central business district while the MTB sits on a freehold site in a health and lifestyle precinct and is a 7-minute walk from Brisbane Central Train Station. NRL’s total spend on properties has increased to AUD110 million with the most recent purchases. 

Binasat Acquiring Proposed Hotel Suites in Malaysia for MYR73.54 Million

Malaysia-based Binasat Communications Berhad (“Binasat”) is set to acquire 241 fully furnished proposed hotel suites in Empire City at Selangor for MYR73.54 million. These suites, located on the 8^th to 17^th floors of Block L within the Empire City integrated mixed-use commercial development, are currently under construction and expected to be completed by March 2026. This acquisition is part of Binasat’s plans to diversify into the property sector, reducing its dependence on its existing telecommunications portfolio.