Far East Hospitality, along with Boo Han Holdings, a subsidiary of Far East Organization, have formed a joint venture to acquire a plot of land in Tokyo for 8.198 billion yen (S$100.5 million) to develop a hotel, according to a report from the Business Times.
The partners will share the property equally. The sale is expected to be complete in the second quarter of 2020.
Shimizu, the seller of the development site, will construct the hotel. The company will deliver the hotel to the new joint venture company Tokutei Mokuteki Kaisha once construction is complete, according to Singapore Business Review. The project is in the Ariake district near central Tokyo, Tokyo Disneyland Resort, Tokyo Big Sight convention center, Ariake Arena and Haneda Airport.
The new hotel in Japan will follow the opening of three new properties—the Village Hotel Sentosa, The Outpost Sentosa and an unnamed hotel—in Sentosa, Singapore in mid-2019. Far East Hospitality will manage the hotels in the Palawan area of Sentosa, whose guestrooms will total 839 guestrooms.
The Village Hotel Sentosa will have 606 guestrooms while The Outpost will have 193 guestrooms. The final hotel, which will be named in a later stage of development, will have 40 guestrooms. These new hotels will boost Far East Hospitality’s portfolio to 11 hotels in Singapore, four of which operate under the Village Hotel brand. These city center properties are the Village Hotel Katong, the Village Hotel Albert Court, the Village Hotel Bugis and the Village Hotel Changi.
As part of its expansion in Asia-Pacific, Far East Hospitality bid $210 million to purchase Singapore’s Oasia Downtown in January 2018. Far East Soho will lease the property for 20 years with a fixed rent at $6.5 million per year. The company has the opportunity the rent for an additional 20 years.