KKR Steps into Japanese Hotel Sector with Hyatt Regency Tokyo Acquisition

Global investment firm KKR and real estate private equity company Gaw Capital Partners have announced that they have entered into agreements to acquire Hyatt Regency Tokyo, according to company statements. The deal is KKR’s first hotel investment in Japan.

The Hyatt is a 746-room luxury hotel in the heart of Tokyo’s business and retail district, next to the Tokyo Metropolitan Government headquarters. It has been owned by Odakyu Electric Railway Company.

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"This investment is a rare opportunity to acquire an iconic hotel in one of the most energetic districts in the world,” Kensuke Kudo, Director, Real Estate, at KKR, said in a statement. “As Japan emerges strongly from the pandemic as a leading travel destination, and domestic and international business travel bounce back, we see great potential to refurbish and to enhance the Hotel’s offerings to both corporate and leisure guests while retaining its unique heritage.”

KKR’s investment, made from Asia Real Estate Partners, builds on the firm’s activity in the region, including KJR Management (formerly Mitsubishi Corp.-UBS Realty Inc.), a leading Japanese real estate manager that oversees two Japanese REITS, a portfolio of multifamily properties in Tokyo, and office assets across Japan.

Gaw Capital invested in Hyatt Regency Osaka in 2014 and is currently managing properties including a logistics portfolio with seven fully-let assets across Greater Tokyo, a portfolio of multi-family residential assets in assorted city centers, and a property in Fuchu Intelligent Park for redevelopment into a Tier III Data Center.

The transaction is expected to close in the second quarter of 2023.