SINGAPORE, 12 May 2023: JLL’s Hotels & Hospitality Group announced Thursday that it advised GK Fortune One on the successful sale of the Red Planet Sapporo Susukino South hotel to GK Nakashima for JPY1.725 billion (approximately USD13 million), an investment vehicle owned by a consortium led by Singapore’s Heeton Holdings Limited.
According to JLL, the hotel has been acquired with vacant possession and will be rebranded to a domestic Japanese hotel brand. Built in 2018, the hotel is located in Susukino, the entertainment and nightlife district of Sapporo and features 123 rooms across eight floors.
“We are seeing strong appetite for hotels with vacant possession where investors can rebrand and capitalize on the exceptional recovery in tourism demand in Japan. JLL is delighted to have advised on this exciting transaction and helped Heeton to secure their third hotel in Japan,” says JLL Hotels & Hospitality Group executive vice president of investment sales, Asia Pacific, Charlie Macildowie.
According to data from STR Global, the Sapporo Limited-Service hotel segment has seen a strong recovery in 2023, with revenue per available room (RevPAR) up 184% for year-to-date March versus the same period in 2022. This performance represents 82% of the RevPAR achieved for year-to-date March 2019 and positions the market on track for a full recovery in 2024, according to JLL forecasts.
The Heeton-led consortium comprises Heeton subsidiary Heeton Invesco Pte Ltd, Hong Heng Company Private Limited and NineCo Investments Pte Ltd.
JLL analysis suggests interest in Japanese hospitality assets remains buoyant on the back of the strong recovery and attractive borrowing costs compared to other markets worldwide.