ibis Styles Tokyo Ginza is located within the capital city’s shopping and entertainment district.
CapitaLand Ascott Trust (CLAS) has acquired two freehold limited-service hotels in Japan for a total of JPY21 billion ($178.5 million). The two hotels are ibis Styles Tokyo Ginza located in the country’s capital and Chisun Budget Kanazawa Ekimae situated in Kanazawa. The acquisition is priced at an 8.3% discount to independent valuation.
On a FY2024 pro forma basis, the acquisition of the two hotels has a distribution per stapled security (DPS) accretion of 1.6%. The blended net operating income (NOI) yield of the acquisition is 4.3% in FY 2024. Adopting a natural hedge against currency fluctuations, the acquisition was funded by JPY-denominated debt and proceeds from CLAS’ divestment of four properties in Japan.
