Commerz Real has paid €200m to buy a newly built hotel in Japan for its open-ended property fund.
The €32bn asset manager said it has acquired the 472-room Onyado Nono branded hotel in Kyōto for its HausInvest fund from fund manager PGIM Real Estate.
The 6,800sqm ten-storeys hotel has been leased for at least 20 years by operating company Kyoritsu Maintenance.
Dirk Schuldes, global head of hospitality at Commerz Real, said: “Kyōto is becoming ever more popular among international tourists and consequently has a very attractive hotel market.
“The former capital city is regarded as the cultural centre of Japan. In 2018 the occupancy rate for hotel rooms in the city was 94.1%, and the revenue per available room actually increased by 8.1%. In this respect, growth of 2% meant the number of overnight stays by international guests exceeded those by Japanese guests for the first time ever according to a survey among hotels in the city.
In addition, Schuldes said the Olympic Games are taking place in Tokyo in 2020 – this is likely to lead to a further increase in interest in Japan on the part of international tourists.
“Moreover, neighbouring Osaka, which together with Kyōto and Kōbe forms a conurbation with some 17.5m residents, is hosting World Expo 2025.”