Japan Hotel REIT Investment to Sell Resort Asset, Buy Osaka Hotel

TOKYO, Jul 17 (Pulse News Wire) – Japan Hotel Reit Investment Corporation (8985.T) decided to sell a resort asset and acquire a limited service hotel in Osaka. The sale of the resort property, located in Okinawa, is set for July 31, 2026, while the acquisition of the Kanedo Hotels Osaka Namba is scheduled for August 3, 2026.

The Okinawa asset was acquired on June 14, 2006, and has a fixed and variable rental structure. It will be sold to Miyahama Co. for a price exceeding its appraisal value, generating expected proceeds of ¥24.07 billion. A portion of the sales profit will be allocated towards distribution, enhancing the firm's liquidity and flexibility.

The transaction is anticipated to reduce leverage ratios, improving future borrowing capacity and financial stability. The newly acquired Osaka hotel, completed in May 2017, offers a prime location near major transportation hubs and tourist attractions. With a focus on domestic and international leisure demand, the hotel features spacious rooms and amenities such as a rooftop spa. Its strategic position in the heart of Osaka’s entertainment district positions it well for long-term growth, particularly amid expectations of increased tourism due to upcoming integrated resorts and Expo legacy effects.