TOKYO, 11 September 2023: JLL’s Hotels & Hospitality Group confirms it advised on a hotel sale in a prime Kyoto location concluded recently.
The firm advised on successfully selling the Hotel Resol Kyoto Kawaramachi Sanjo in central Kyoto to a particular purpose vehicle (SPV)* established by Mitsui Bussan Digital Asset Management KK.
According to JLL, the hotel has been acquired with the existing master lease remaining in place and will continue to be operated under the Resol hotel brand.
Located in central Kyoto, along the highly coveted Kawaramachi-dori, the Hotel Resol Kyoto provides convenient access to the city’s key attractions, including the downtown Kawaramachi shopping district and the geisha entertainment district of Pontocho Gion. Opened in 2018, the hotel comprises 144 rooms with a modern Japanese theme.
“This asset represents an exceptional opportunity to acquire a newly built hotel in a prime tourist location in Japan. As accommodation demand recovers and financing terms remain attractive, we continue to see exceptional interest levels for Japanese hotels,” said JLL Hotels & Hospitality Group executive vice president of investment sales Asia Pacific Charlie Macildowie. “JLL is delighted to have advised on this exciting transaction, reaffirming our standing as the unmatched provider of hotel investment expertise in the dynamic Japanese market.”
According to JLL, the first half of 2023 saw JPY203 billion (USD1.39 billion) of hotels change hands in Japan, with the six-month volume representing a 65.4% 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 upon.
Mitsui & Co. Digital Asset Management, Ltd. specialises in asset management for real assets using blockchain and was established as a joint venture between LayerX and Mitsui & Co. The company has launched the “Digital Securities Project,” which focuses on issuing security tokens using blockchain technology and a dedicated fund that invests in high-quality real estate held by J-REITs.
*An SPV, or special-purpose vehicle, is a legal entity allowing multiple investors to pool their capital and invest in a single company. SPVs have multiple use cases in the business world. Public corporations sometimes use SPVs to isolate certain holdings from the parent company’s balance sheet.
