Tokyo-based Loadstar Capital K.K. has a deal in place to acquire three hotels in Greater Tokyo.
The hotels acquired include two in Tokyo — the first in Meguro City, the second in Taito City — and one in Kawasaki City, which is part of Kawasaki, a few miles southwest of the Japanese capital. The names and room counts of the hotels are not specified.
No exact transaction price has been provided, but a news release from Loadstar specified “the acquisition price is equivalent to or more than 30% of the company’s consolidated net assets of [19.3 billion Japanese yen ($125.6 million)] for the fiscal year ended Dec. 31, 2023.” That would put the transaction price at approximately 5.8 million Japanese yen ($37.7 million).
The transaction's settlement date is scheduled for Nov. 26, according to the company's release.
In March, Loadstar acquired six luxury resort hotels from Yoshida, Japan-based Hiramatsu Hotels & Resorts and NTT Urban Development Corp. The properties in that deal included the 13-room Hiramatsu Atami in the prefecture of Shizuoka; the 19-room Hiramatsu Ginoza in Okinawa; the 37-room Hiramatsu Karuizawa Miyota in Nagano; the 8-room Hiramatsu Kashikojima in Mie; the 29-room Hiramatsu Kyoto; and the 20-room Hiramatsu Sengokuhara in Kanagawa.
At the time of that transaction, the company added that “Loadstar has increased hotel investments in response to inflation and strong demand from travelers to Japan. As part of this strategy, Loadstar acquired the hotels. Hiramatsu continues to operate the hotels.”
In June, Loadstar secured debt valued at approximately 17 billion Japanese yen from three Japanese banks and investment houses: Nomura Trust & Banking Co., Shizuoka Bank and Tokyo Century Corp.
The weakened yen and influx of inbound tourism have fueled hotel investment among domestic and international investors throughout Japan in 2024.
Loadstar Capital's three-hotel deal is the second sizable hotel acquisition in Japan this month.
On Nov. 4, a joint venture comprised of New York City-based investment firm TPG Angelo Gordon and Tokyo-based investment firm Kenedix acquired the 882-room Grand Nikko Tokyo Daiba for 106 billion Japanese yen.