Singapore-based property and hospitality group Roxy-Pacific Holdings has acquired its second hotel asset in Japan, the Tenmabashi Grand Hotel Osaka, for ¥3 billion, or just over $27 million. The deal is expected to be completed in October.
The 154-guestroom, nine-story property opened in May, and when the deal is completed in October, will be self-managed by the Group's Noku Roxy hospitality management arm, which currently operates the boutique Noku Kyoto hotel in Kyoto, Japan.
“Our self-managed Noku Kyoto hotel has achieved high room rates and good yield–a testament of the effective business model that we hope to replicate in the Osaka hotel asset so as to bolster our recurring income streams for greater resilience,” Chris Teo, managing director of Roxy-Pacific, said in a statement.
The acquisition comes as Japan is experiencing a tourism boom, with 13.8 million tourists in the first six months of 2017, a 17.9-percent increase from 11.7 million a year ago.
Osaka received a record number of foreign visitors in 2016, exceeding 9.4 million, representing a 31-percent increase from 2015. The city also reported one of the highest hotel occupancy rates of any major city in Japan.
Noku Roxy’s hospitality brand asset pipeline includes a 50-villa resort in Maldives and a separate resort in the Chalong sub-district of Phuket, Thailand, planned for the last quarter of 2017 and 2019, respectively.