Sale Completed for Urawa Royal Pines Hotel in Japan
05 April 2016
Savills Hotels is pleased to announce that the sale of Urawa Royal Pines Hotel in Saitama, Japan, was completed on 1st April 2016. This hotel was acquired by United Urban Investment Corporation, one of the leading J-REITs in Japan, for JPY 17.5 billion. Savills acted as the exclusive agent for the seller, Godo Kaisha URP.
A 25-minute train ride from Tokyo Station and 6-minutes’ walk from the local station, Urawa, Urawa Royal Pines Hotel is the landmark hotel in Saitama City which is the capital city of Saitama Prefecture. Most local administrative offices including Saitama Prefectural Office and Saitama City Hall are located in the vicinity. With its high quality facilities and limited competition in the area, the hotel constantly sees strong demand for accommodation and reception events from local governments and companies. Moreover, as Saitama Super Arena and Saitama Stadium 2002 are designated as venues for the 2020 Tokyo Olympics, the hotel is expected to attract more guests from both inside and outside Japan in the future.
As a notable trend of Japan’s tourism market, increasing numbers of international tourists have begun to visit regional cities during their repeat travel to the country after visiting cities like Tokyo, Osaka, Kyoto, which are typical for the first trip. Following a historical high of 19.7 million international arrivals in 2015, the government has announced on 30th March 2016 that they will amend their initial goal of 20 million international arrivals per annum by 2020 to 40 million and also aim for 60 million by 2030.
Real estate investors seek to benefit from the boom in tourism. Currently, cap rates stand at the pre-global financial crisis levels of 2007, and are expected to compress further due to the large amount of capital seeking investment opportunities in the country. Regional cities still offer a premium over pre-crisis levels and should continue to compress in 2016. Given the relatively sharp pricing in Tokyo, there remains significant appetite from domestic and international investors for deals in regional cities.
Hotels, Asia Pacific
Corporate Communications Manager
+65 6415 7579