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CDLHT to acquire two hotels in Japan for 6b yen
CDL Hospitality Trusts (CDLHT) is making its foray into Japan by acquiring two hotels for a total cost of 6 billion yen.
CDLHT will acquire Hotel MyStays Asakusabashi and Hotel MyStays Kamata from AKH GK, it said on Monday.
Meanwhile, in connection with the acquisitions, CDL Hospitality Business Trust (HBT) has through its subsidiary, CDL HBT Hanei, entered into a separate sale and purchase agreement to acquire AKO GK, the master lessee. The master lessee will continue to assume the obligations under its existing agreements which include the hotel management agreements with the hotel operator.
Vincent Yeo, chief executive of M&C REIT Management, said: "Tokyo is one of the leading hospitality markets in the world and is exhibiting strong growth potential. The city has witnessed remarkable growth in the past couple of years in terms of visitor arrivals. With tourism identified as a key thrust of the Japanese government's reforms, we believe our acquisitions will further benefit from the growth trajectory of Tokyo's hospitality market in the lead up to the Tokyo 2020 Olympics."
He added that the weaker Japanese yen will lure more tourists, while the low funding cost environment makes investment in Japan very attractive.
The acquisitions are expected to be completed around Dec 19.
CDLHT is a stapled group comprising CDL Hospitality Real Estate Investment Trust (H-REIT) and HBT.