HONG KONG—CBRE arranged the sale of Hotel MyStays Asakusabashi and Hotel MyStays Kamata, both located in Tokyo, on Dec. 19, 2014. The properties, held by the real estate investment fund Real Estate Capital Asia Partners (RECAP), managed by Singapore-based SC Capital Partners, were sold to CDL Hospitality Trusts, a Singapore-based REIT. CBRE Hotels represented the seller.
Hotel MyStays Asakusabashi is located a one-minute walk from Asakusabashi Station on the JR Sobu Line, and has a two-minute access to Akihabara, a popular tourist spot for overseas visitors. Built in September 2009, the hotel has 14 stories above ground, with 2,831.00 sq. m. of floor space. It has 139 rooms, 24 of which are apartment-type units.
Hotel MyStays Kamata is located a four-minute walk from Kamata Station on the JR Keihin-Tohoku Line. The station offers direct access to Haneda International Airport. Built in June 2009, it has 14 stories above ground, with 2,675.88 sq. m. of floor space. The hotel has 116 rooms, 25 of which are apartment-type units.
“Hotels have attracted considerable interest as investment targets from both Japanese and international investors, due mainly to Japan’s brisk real estate market and expectations for the Tokyo Olympics, along with a positive tourism situation,” stated CBRE Hotels Japan Director Kiyoshi Tsuchiya. “These two hotels have both recorded positive earnings compared to previous years on the strength of Tokyo’s hotel market, and further increases are expected. This enabled us to successfully arrange the deal at a higher price than initially expected. In the current market, cap rates are being compressed by rising expectations for hotel earnings, and we expect this trend to continue.”