Foreigners Buying Japanese Hotels at a Higher-Than-Usual Rate
Skift Take
- Bloomberg published an article saying foreign investors are buying up Japanese hotels at a scale unseen in almost a decade, as the nation’s tourism recovery, weak currency and low-interest rates drive an appetite from abroad.
- As expected, the Japanese government wasted no time in approving the Osaka prefecture Integrated Casino Resort plan once the Governor was reelected and the first poll came out showing a favorable view.
- Accor is expanding its presence in Japan with the signing of ibis Styles Tokyo Ginza East, centrally situated in the shopping and entertainment district of Ginza.
Bloomberg published an article saying foreign investors are buying up Japanese hotels at a scale unseen in almost a decade, as the nation’s tourism recovery, weak currency and low-interest rates drive an appetite from abroad. MSCI Real Assets said overseas buyers were responsible for 47% of the 494.3 billion yen (US$3.7 billion) invested in hotel deals that closed in the past 12 months. That is the highest proportion since 2014. Hotel investment makes up about a tenth of real estate deal activity in Japan but foreign investors have historically been drawn more to residential or retail properties. Savills recently issued a report predicting low upcoming hotel supply so that is unlikely to disrupt the operating performance of hotels due to the moderate competition in the market.
As expected, the Japanese government wasted no time in approving the Osaka prefecture Integrated Casino Resort plan once the Governor was reelected and the first
