Despite being on leasehold land, this recently-built hotel in Asakusa sold last week for 65.5 million Yen per key (approx. US$460,000). The Nomura Real Estate Master Fund entered into an agreement to acquire the Mimaru Suites Tokyo Asakusa hotel on December 14 for 2.36 billion Yen (US$16.57 million) with delivery to take place in April 2024.
The 36-room hotel was built in February 2022 and is a 1-minute walk from Asakusa Station and a 5-minute walk to Nakamise Shopping Street and Senso-ji Temple.
The GFA of the hotel is 2,993m2 and it occupies 483m2 of leasehold land where the landlord is a domestic corporation. This is a fixed-term 50-year business-use leasehold that expires in 2070. The hotel itself is leased to an operator under a fixed-rent-plus-variable-rent contract with an undisclosed rent.
The Mimaru Suites brand is recognized for providing more spacious hotel rooms suitable for multiple guest travelers and those who stay for multiple nights. The rooms include mini-kitchens and fridges. All guest rooms in Mimaru Suites Tokyo Asakusa are between 60 ~ 70m2 (645 ~ 753 sq.ft) and can comfortably accommodate four to six guests per room. Over 90% of the guests staying at this hotel are inbound tourists and more than 90% stay for three or more consecutive nights. Several Mimaru-branded hotels have sold in Tokyo over the past year, including Mimaru Tokyo Hatchobori for 69 million Yen per key and Mimaru Tokyo Akasaka for 77.9 million Yen per key.
Japan, and especially Tokyo, has seen a rapid recovery in inbound tourism, and this has spurred a rapid flurry of investment into hotels, with domestic REITs eager to acquire assets in this sector. In October, inbound tourist arrivals exceeded pre-pandemic levels for the first time, with 2.51 million inbound visitors, up 0.8% from October 2019. The rate of increase is 28% if tourist numbers from China are excluded. Visitor numbers from mainland China have yet to recover, dropping 65% from 2019.
Source: Nomura Real Estate Master Fund News Release, December 12, 2023.
