Asia Pacific Hospitality Newsletter - Week Ending 12 January 2024

Japan Hotel REIT Acquires 170-key Hotel JAL City Kannai Yokohama For JPY4 Billion

Japan-based Japan Hotel REIT has bought the 170-key Hotel JAL City Kannai Yokohama (“The hotel”) for JPY4 billion. Located in central Yokohama, the limited-service hotel is in close proximity to Yokohama’s Chinatown, seaside attractions, and the Nihon-Odori railway station. The acquisition comes after a steady recovery of business and leisure demand in the Kannai area. The purchase was funded with a JPY1.2 billion loan from Japan-based MUFG Bank and a JPY2.8 billion loan from the Development Bank of Japan. The hotel is expected to be leased to a wholly owned subsidiary of Japan Hotel REIT’s strategic partner, Hotel Management Japan.

82-key Shanghai Bulgari Hotel Sold For RMB2.4 Billion

Chinese state-owned developer Overseas Chinese Town (OCT) has sold the 82-key Bulgari Hotel (“The hotel”) in Shanghai, China, to China-based Jiangsu Jinfeng Cement Group, for RMB2.4 billion. Built in 2016, the hotel comprises of 63 standard rooms and 19 suites that occupies the top eight floors of the 48-storey tower. The sale took place via a public tender, and includes ancillary buildings associated with the hotel, three commercial segments, and parking spaces, which adds up to 35,247 square metres of gross floor area. The transaction is expected to be completed in the first half of 2024, with the continued use of the Bulgari brand being subject to further negotiation.

 Shanghai’s 193-key Wanda Reign on the Bund Hotel Acquired

Singapore-based Pacific Eagle Real Estate (PERE) has acquired the Wanda Reign on the Bund hotel, in Shanghai, China, from China-based Dalian Wanda Group. PERE is the property investment and development arm of Singapore-based RGE Group, owned by Indonesian billionaire Sukanto Tanoto. While the transaction price remains undisclosed, it is estimated that the hotel was acquired at an amount ranging between RMB1.44 to 1.66 billion. Located in Shanghai’s Bund waterfront district, the 193-key luxury hotel was built in 2016 and occupies 36,000 square metres of floor area. Moving forward, it is expected that the hotel will continue to operate under the Wanda brand and be managed by the company’s hotel division.