Nippon Accommodations Fund buys Japan hotel portfolio for $21.1m

Nippon Accommodations Fund Inc. (NAF), a publicly traded Japanese real estate investment trust (J-REIT), has purchased a portfolio sale of three hotels in Japan for JPY 3.1 billion (approximately $21.2 million).

JLL’s Hotels & Hospitality Group has advised the seller, a domestic limited liability company or GK. Hotels are located in Nishi Akashi, Matsuyama, and Naha, Japan.

“We continue to see robust investment appetite for hotel assets throughout Japan. These three hotels are well positioned to provide stable income to the investor as Japan continues to experience a strong recovery in tourism and travel. JLL is delighted to have advised on this exciting portfolio transaction and assisted NAF in securing these three hotels,” said James Yukio Abe, managing director, head of investment sales, Japan, JLL Hotels & Hospitality Group.

NAF is a Japan-based J-REIT focused on achieving sustainable growth and stable mid- to long-term earnings through investment in rental housing and a portfolio of hospitality facilities. The investment areas of rental housing include the Tokyo area and regional core designated city areas and hospitality facilities in major cities across the country and their outskirts. The J-REIT’s asset manager is Mitsui Fudosan Accommodation Fund Management Co.

Interest in Japanese hospitality assets remains buoyant on the back of the strong recovery and attractive borrowing costs in comparison to other markets across the world. According to JLL, the first half of 2023 saw JPY 203 billion ($1.39 billion) of hotels change hands in Japan, with the six-month volume representing a 65.4 percent increase in the first half of 2022. JLL expects this trend to continue into the second half of 2023 with several transactions already closed or agreed.