A-HTrust to lease entire hotel in Ariake, Tokyo to Sotetsu Hotel Management Co
ASCENDAS Hospitality Trust (A-HTrust) has, through Ascendas Ariake Godo Kaisha, entered into a memorandum of understanding (MOU) to lease a hotel property to conglomerate Sotetsu Hotel Management Co from April 1 next year.
The property is a dual-brand accommodation comprising 790-room Hotel Sunroute Ariake and Oakwood Apartments Ariake Tokyo, which offers 122 serviced apartments.
Under the MOU, the existing fixed-term building lease agreement will be extended to cover the entire hotel property.
The tenure of the fixed-term building lease agreement will also be extended to March 31, 2033, and the entire hotel will operate under the "Sunroute" brand.
Ascendas Ariake Godo Kaisha is a wholly owned subsidiary of Ascendas Hospitality Business Trust.
Tan Juay Hiang, chief executive of the managers, said: "We are pleased to receive an attractive proposal from Sotetsu to extend the master lease to the entire hotel, which will help to improve the income stability to A-HTrust. We believe that a single hotel operator managing the hotel can create synergy as the hotel will be able to offer different room types under a single platform and also operate at higher cost efficiency."
Hotel Sunroute Ariake will be underdoing a renovation soon to refresh all its rooms and improve its competitiveness, A-HTrust highlighted.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
UPS profit beats estimates as cost cuts offset weak delivery demand
PepsiCo beats quarterly revenue estimates on price hikes, steady demand
General Motors beats quarterly results targets, raises forecast
Soilbuild bags contracts worth S$81 million
Spotify’s monthly user numbers miss estimates on lower promotions
China bubble-tea chain Chabaidao plunges on Hong Kong debut