Blackstone buys Kyoto Mozy Nijo Hotel for $54m
Blackstone purchased the 158-room Moxy Kyoto Nijo, a Marriott International Inc. brand, for ¥8 billion ($54 million) last week from Goldman Sachs Group Inc.
The hotel, situated near Kyoto’s historic Nijo Castle, opened in July 2021.
Japanese hotels have become some of the most popular real estate investments in the Asia-Pacific region this year. Investors are betting on the continued recovery of tourism as the yen weakens and are drawn to the ability of hotel operators to adjust room rates in an inflationary environment.
The number of foreign visitors to Japan in October exceeded levels seen in 2019 before the coronavirus pandemic, with their spending from July through September also surpassing 2019 figures, and lodging accounting for the largest portion.
As of August, foreign investors had spent $2 billion on hotel deals in Japan in 2023, surpassing any other sector in Asian commercial property and exceeding 2022’s annual investment figure, according to MSCI Real Assets.
Blackstone’s head of Japan real estate stated earlier this year that hotels were at the ‘top of the list’ for acquisition priorities due to the business potential surrounding the tourism boom. They have acquired at least 12 hotels for its Japan portfolio in the past two years.