Real estate investment group LaSalle has acquired the Hotel Ibis Styles Tokyo Bay in Urayasu City, Chiba Prefecture in Japan for an undisclosed sum.
The new-build 216-guestroom property, managed by AccorHotels Group, is scheduled to open on July 2. The Ibis Styles is near Shin Urayasu Station, Tokyo Station and Narita International Airport—as well as Tokyo Disneyland.
LaSalle aims to capitalize on the current Japanese tourism boom while inbound tourist numbers surge ahead of the Tokyo 2020 Olympics, which is set to drive the demand for guestrooms. LaSalle predicts approximately 40 million people will visit the country in 2020. “Japan holds many opportunities for us and Urayasu, Chiba, in particular is experiencing strong growth for its hospitality sector, underpinned by a booming domestic tourism market and its growing reputation as a resort destination,” Kunihiko Okumura, head of acquisitions for LaSalle Investment Management in Japan, said in a company statement.
Several other factors convinced LaSalle to invest in the country. Tourist numbers doubled last year since 2014. More than 28 million tourists traveled to Japan in 2017. Also, RevPAR grew 7.8 percent in 2016 and 7.4 percent in 2017, according to data from HVS. The hotel consultancy predicts the industry will see an 8.1-percent growth in 2018. Furthermore, a new law meant to boost capacity for the Olympics will restrict home-sharing services, like Airbnb. Hosts can rent out private accommodations for only 180 days a year. The law also mandates that hosts must register with the land ministry.
However, these draws to the region can potentially lead to oversupply as domestic and foreign groups rush to increase inventory to accommodate travelers during the Olympics. Mizuho Research Institute predicts Japan will have an oversupply of guestrooms by 2020.
This recent hotel buy is the latest made for its LaSalle Asia Opportunity V investment fund. The fund has already invested 37 percent of its funds in Tokyo, Osaka, Nagoya, Singapore, Shanghai and Hangzhou. LaSalle has purchased offices, retail space, logistics facilities and hotels using the fund.