Japan Hotel REIT has purchased a 453-room hotel in Tokyo for JPY 62.4bn (US$561.5m) to take advantage of the upcoming 2020 Tokyo Olympics.
The 4-star Hilton Tokyo Odaiba hotel is located in Odaiba, one of the most popular tourist destinations in the capital, and comes with multiple Japanese, Western and Chinese restaurants and other facilities, the REIT announced.
Various events for the Tokyo 2020 Olympics and Paralympics are set to be held in the Odaiba area.
Additionally, the international broadcasting centre and main press centre will be situated at the nearby Tokyo Big Sight exhibition centre.
The transaction grows JHR’s portfolio to 43 hotels across the country, totalling JPY 374.5bn (US$3.37bn).
The deal comes as Japan’s number of overseas tourists increased 8.7% year-on-year to 32.1m in 2018, surpassing the 30m mark for the first time ever, according to advisor Savills.
Japanese authorities have set a goal to reach 40m annual visitors by 2020, when Tokyo hosts the Olympic games.
There were JPY 287bn worth of transactions in Japan’s hotel investment market in 2018, down 3% on the previous year.