Lone Star Funds has bought a 175-room hotel in Japan from Mapletree Investments for an undisclosed amount.
The acquisition of the Oakwood Suites in Yokohama was made by an affiliate of Lone Star Real Estate Fund VII.
The hotel opened in November 2020 as part of a 1.8m sqft mixed-use redevelopment project led by Mitsui Fudosan, and occupies floors 46 through 51 in a condominium tower with over 1,176 high-end residential units.
The asset is currently operating as serviced apartments, but Lone Star plans to convert it to a hotel in the fourth quarter of this year to operate as an upscale branded hotel.
Jérôme Foulon, global head of commercial real estate for Lone Star, said: “This is a good example of the value-add investment approach that Lone Star has a long track record of executing upon in Japan.”
Mitsuo Matsunaga, head of Lone Star in Japan, said: “In order to further improve the quality of this high-end asset, Lone Star will redesign the value proposition of the property and execute a significant repositioning plan.”
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