We’re proud to announce the successful completion of one of our biggest and most significant hospitality transactions of the year, the acquisition of a 22-key hotel in Gion, Kyoto, on behalf of our client.This is the third Kyoto hotel transaction we have facilitated for our clients, and it reinforces a theme we continue to see across the market.
The asset is positioned in one of Kyoto’s most sought-after neighborhoods, surrounded by established antique dealers, luxury boutiques, the Shirakawa River, and some of the city’s most iconic seasonal scenery.
The opportunity stood out because of the strength of the location and the room for improvement in the existing operation. The hotel had been underperforming, while the surrounding area remained highly sought after, creating an opportunity to reposition the property and bring it up to the standard of its location. Additionally the existing interior and positioning were not reflective of the quality and pricing power of the surrounding market.
For the right investor, this created a clear value-add thesis: acquire the right location, reposition the asset, and bring the hospitality product up to the standard of its surroundings. Based on our underwriting, we see the potential to achieve an ROI of more than 7.5% through the repositioning and improvement of the asset.
We continue to come across hotels in Kyoto with great locations and strong underlying value, but the existing operation,design and positioning still has plenty of room to improve. Finding these assets requires local relationships, disciplined underwriting, and the ability to identify value beyond current performance.
We look forward to continuing to work with select buyers and sellers seeking value-add hospitality opportunities across Kyoto and Japan.🗾
📨Private opportunities available to qualified investors.
Contact sales@shikiproperties.com for more info.
