Japanese REIT buys hotel from Lone Star affiliate
Japan Hotel REIT, an affiliate of Singapore’s Real Estate Capital Asia Partners, has acquired the 361-room Okinawa Marriott Resort & Spa in Nago City, Japan, for $120.4 million, or $333,642 per room. The seller was Rising Sun Dai-Ni-go A TMK, an affiliate of Lone Star.
Okinawa has been experiencing increased tourism, which supports the region’s hotels. According to Okinawa Prefecture, the number of tourists entering Okinawa has been increasing since the bottom in 2011 when there were approximately 5.42 million. In 2014, Okinawa had approximately 7.06 million entering tourists.
Domestic tourists account for a significant portion of the visitors to Okinawa. In 2014, 87.3 percent were domestic tourists. Year-on-year growth of domestic tourists has been steady, with increases of 7.4 percent and 5.1 percent in the past two years. Moreover, according to Okinawa Prefecture, about 80 percent of domestic tourists are returning tourists. Japan Hotel REIT