A joint venture between Japan's Mori Trust Asset Management Co. and Mori Trust Hotel REIT to acquire the Hilton Odawara Resort and Spa from Odawara Hilton Co. has closed on the deal, with Savills reportedly advising Hilton on the sale.
The 50/50 JV between the REIT and the developer reportedly paid $119 million for the upscale 163-room hotel that Hilton had acquired from Odawara City in 2012. Hilton had managed the property since 2004 through a JV structure. Since then, Hilton renovated all guestrooms, the restaurant and public areas and purchased 10 cottages and two ancillary buildings that form part of a timeshare project.
The hotel will continue to be operated under the Hilton Hotels and Resorts brand, and MT & Hilton Hotel Co., a subsidiary of Mori Trust Hotels & Resorts Co., will have ongoing involvement in the hotel's management and operation.
in the notice of the acquisition, Mori said Odawara is a "leading tourist destination" in the Kanagawa prefecture that is 35 minutes from Tokyo by train. The city has seen an increase in visitor numbers, going from 4.53 million in 2015 to 6.11 million in 2017 and the city is hoping to attract 7 million visitors by 2022 and 10 million by 2029.
The hotel offers event spaces, a fitness center, tennis courts, an indoor golf driving range and natural hot spring baths.
George Nicholas, global head of hotels at Savills, said: "The disposal of this asset on behalf of our client represents the culmination of a period of active investment and asset management, and coincides with strong long-term investment appetite for Japanese tourism infrastructure in the lead up to the 2019 Rugby World Cup {beginning Sept. 20], as well as the Tokyo 2020 Olympics."