Acquisition and repositioning hotel properties, introduce new design and branding concepts targeting untapped customer groups, to maximize asset value and return on investment
Llaunch platform for Garnerthe expansion of in Japan and Asia-Pacific, focusing on Rapidly growing mid-range traveler segment seeking high-quality accommodation at affordable prices In prime Locations
TOKYO, JAPAN – Media OutReach Newswire – March 18, 2024 – Ax Management Partners (“Axe Management”), a pan-Asian real estate investment company, today announced the completion of the acquisition of three hotel properties from CapitaLand Ascott Trust (“CLAS”) for JPY 10.7 billion (approximately US$75 million).
Abhijay Sandilya (Managing Director – Japan and Micronesia, IHG), Sam Lau (Founder and Managing Partner, Ax Management), Elie Maalouf (CEO, IHG), Gary Kwok (Founder and CEO, Ax Management), Kenneth Macpherson (CEO – Europe , Middle East, Asia and Africa, IHG).
Ax Management and IHG Hotels & Resorts (“IHG”) will work closely to launch the new Garner hotel brand outside of North America, including establishing design and branding concepts and carrying out construction work. renovation. Through focused sales, marketing and operational strategies, the partners plan to deliver differentiated and enhanced guest experiences, creating unique and lasting impressions of hotels. Scheduled to open in the fourth quarter of 2024, each of the three hotels will have its own design character with convenient amenities, providing guests with a comfortable stay and the go-to option in the premium-midscale segment.
The three hotel properties, currently known as WBF Honmachi, WBF Kitasemba East and WBF Kitasemba West, have a total of more than 500 rooms and a total area of approximately 10,000 m². They are centrally located in the prime Honmachi Osaka district, close to Osaka subway stations and within walking distance of shopping districts and the famous tourist area of Shinsaibashi. The two largest terminal stations of Namba and Umeda are two stops away on the Midosuji Line, with Shin-Osaka Shinkansen Station just five stops away. Future World Expo 2025, Japan’s first integrated hotel and casino resort, and Universal Studios are about 25 minutes away by train.
From left to right, WBF Honmachi, WBF Kitasemba East and WBF Kitasemba West
Gary Kwok, founder and CEO of Ax Management, said: “We are very excited about the acquisition of this exceptional hotel portfolio with immense value-add potential. With flexibility in our repositioning strategies, we will invest more capital and utilize our development and operational capabilities. to transform these assets, creating a product that exceeds expectations, driving performance and unlocking their true potential.
Sam Lau, founder and managing partner of Ax Management, said: “We expect attractive opportunities to emerge in parts of Japan and Asia in the coming months. Japan has seen strong momentum and we hope this will continue in the near future. highlights our commitment to Japan, where we plan to deploy more capital and make new acquisitions in the near future. »
Due to their excellent location close to a central business district and key tourist areas, the hotels are poised to meet the business and leisure demand of domestic and international visitors. According to the Japan National Tourism Organization, the number of inbound tourists in the fourth quarter of 2023 exceeded that before the pandemic, although trips by Chinese tourists remain more than 60% lower than the same period in 2019, when they were the largest group of incoming visitors. . A steady and continued increase in demand is expected in 2024 and 2025, supporting future demand growth. Additionally, CBRE and STR display both ADR and RevPAR.[1] exceeded 2019 levels, demonstrating strong industry momentum. These key factors, among others, have propelled record investment volumes in the Japanese hotel sector in 2023, from domestic and international investors.
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