HVS Asia Pacific Hospitality Newsletter - Week Ending 10 January 2025

OJR Makes Two Hotel Acquisitions in Japan

Japan-based ORIX Asset Management Corporation, a subsidiary of Japan-based ORIX JREIT Inc. (“OJR”) has announced its acquisition of two properties in Osaka and Kyoto from Japan-based Cosmos Initia Co., Ltd. The acquisitions include the 40-key MIMARU Osaka Shinsaibashi East for JPY5.3 billion and the 37-key MIMARU Suites Kyoto Shijo for JPY2.55 billion, bringing the total acquisition cost to JPY7.85 billion. Both hotels are situated in the highly sought-after Osaka – Kyoto region and offer convenient access to multiple train routes within walking distance. All guest rooms are equipped with a kitchen, refrigerator and other appliances that cater to the needs of long-staying international travellers. 

JHR Sells Washington Hotel Plaza Hakata, Nakasu for JPY4.61 Billion in Fukuoka, Japan

Japan-based Japan Hotel REIT Investment Corporation (“JHR”) has sold the 247-key Washington Hotel Plaza Hakata, Nakasu for JPY4.61 billion to Japan-based fund manager RISA Partners, Inc., a unit of Japan-based leasing company, NEC Capital Solutions. This translates to approximately JPY18.6 million per key. The 12-storey hotel occupies a land area of 1,128.5 square metres and is conveniently located just a five-minute walk from Nakasukawabata Station on the Kuko Subway Line. The hotel currently generates a monthly rent of approximately JPY20 million. The transaction is expected to generate an estimated gain of JPY2.348 billion for JHR.

Madison Plaza Townsville Sold in Australia

Australia-based private family office Morgan Hotels Pty Ltd. has sold the 93-key Madison Plaza Townsville in Queensland to a private Asian investor for an undisclosed sum. The freehold property occupies a 2,091-square-metre site with flexible zoning. It features five commercial tenancies, an indoor swimming pool, a guest lounge with a bar, and function facilities accommodating up to 200 guests. Conveniently located at the corner of Flinders and Stanley Streets, the hotel is just a 10-minute drive from Townsville Airport and a 2-minute drive from the beach. 

Indonesia Aims to Invest IDR2.254 Trillion in Tourism for 2025

Indonesia plans to allocate IDR2.254 trillion for tourism in 2025, a significant increase from its initial proposal of IDR1.489 trillion. The increased funding will support the Ministry of Tourism’s “Quick Wins” programs, focusing on four strategic initiatives. The first initiative aims to boost domestic tourism through integrated campaigns and bundled travel packages. The second emphasises digital transformation, modernising the tourism experience by digitising event calendars and implementing AI-powered travel planning tools. The third seeks to enhance accessibility by working with airlines and stakeholders to lower travel costs for both domestic and international tourists. Finally, the fourth initiative prioritises quality improvements through professional training, upgraded service standards, and support for local businesses in the tourism sector.