CDL Hospitality Trusts enters Japan, acquires two hotels

Singapore

CDL Hospitality Trusts (CDLHT) is making its foray into Japan by acquiring two hotels at a total cost of six billion yen (S$66.3 million).

CDLHT - a stapled group comprising CDL Hospitality Real Estate Investment Trust (H-Reit) and CDL Hospitality Business Trust (HBT) - will acquire the 138-room Hotel MyStays Asakusabashi and the 116-room Hotel MyStays Kamata for 3.2 billion yen and 2.6 billion yen respectively from AKH GK. Both hotels operate in the business economy segment.

The acquisition cost is 5.8 billion yen, while a further 188 million yen will go towards acquisition fees and transaction expenses. The purchase consideration is lower than the average valuation of the properties by DTZ Debenham Tie Leung Kodo Kaisha and International Appraisals Incorporated of 6.06 …