KKR and Gaw Capital to buy Hyatt Regency Tokyo luxury hotel in Japan

US-based Investment firm KKR and Hong Kong’s real estate private equity firm Gaw Capital Partners will acquire Hyatt Regency Tokyo, a luxury hotel, from Odakyu Electric Railway Company, for an undisclosed amount.

The proposed acquisition marks KKR’s first hotel investment in Japan and builds on the company’s sustained activity and robust momentum in the country’s real estate space.

The Hyatt Regency Tokyo, built in 1980, is situated in Shinjuku and features 746 rooms.

Kensuke Kudo — KKR Real Estate Director said: “This investment is a rare opportunity to acquire an iconic hotel in one of the most energetic districts in the world.

“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.

“We are pleased to welcome Gaw Capital, with their hospitality expertise, as strategic partners here, which will enable us to tap into our collective strengths for the Hotel’s transformation.”

The acquisition, which is anticipated to be completed by the second quarter of 2023, is subject to regulatory approvals and closing conditions.

Isabella Lo — Gaw Capital Partners Managing Director and Head of Japan said: “We are delighted to collaborate with KKR in a rare opportunity to acquire the iconic full-service Hyatt Regency Tokyo in prime Shinjuku.

“With a full renovation of the hotel rooms and the public areas, the Hotel will enjoy the upside from the jump in the number of inbound travelers from overseas and its advantageous location in a global commercial hub.”

As of 31 December 31, KKR commanded around $65 billion in assets globally.

In early 2022, Gaw Capital Partners completed the $3 billion privatization of the 18-property Invesco J-REIT while commanding assets of $33.6 billion under management globally as of Q3 2022.