CDL pays $78.5 million for a 256-room hotel in Osaka

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Read more: DB2 showcases Orchard Sophia starting at $2,750 psf, with absolute costs ranging from $1.23 million to $2.29 million

DB2 showcases Orchard Sophia starting at $2,750 psf, with absolute costs ranging from $1.23 million to $2.29 million

City Developments Limited (CDL) C09 -0.15%has acquired the Bespoke Hotel Osaka Shinsaibashi for 8.5 billion yen ($78.5 million). The purchase was done through CDL’s indirect wholly owned affiliate, M&C Sakura TMK, and will be CDL’s third hotel acquisition before 2023. The company acquired The Sofitel Brisbane Central hotel in Australia in March and also the Nine Tree Premier Hotel Myeongdong II in South Korea in July

The Bespoke Hotel has 256 rooms that are freehold. Bespoke Hotel was officially opened in the year 2019 and is situated at the Osaka’s Shinsaibashi commercial district. It is walking distance to a variety of popular shopping areas and malls like the well-known Midosuji Avenue and Shinsaibashi-suji shopping street. There are two stations in the city. Nagahoribashi as well as the Shinsabashi stations are both just a 4-minute and 6-minute walk, respectively.

According to CDL the hotel is in a good position to reap the benefits of the revival that is taking place in tourism Japan. Particularly, the tourism industry in Osaka should grow over the next few years.

It is already the home of Universal Studios Japan, which is the third most visited theme park by 2022, with 12.4 million visitors. Osaka will also host the six-month World Expo in 2025, which is expected to attract 30 million people.

Additionally the $10 billion ($13.5 billion) MGM Integrated Resort is scheduled to open in Osaka in the year 2030. This resort will offer entertainment, casinos shopping, hotels and MICE (or meetings incentives, conferences, meetings as well as exhibitions) amenities, set to receive 20 million guests each year after the resort’s debut.

“Japan’s tourist industry regenerated significantly post-pandemic and we thought this was a perfect opportunity to grow our hotels portfolio. The group is the owner of the hotel with 329 rooms, Millennium Mitsui Garden Hotel in Tokyo Ginza as well as other rental apartments situated in Yokohama as well as Osaka. This investment aligns with our company’s plan to continuously expand and diversify our real estate portfolio.” states Kwek Leng Beng who is CDL’s chief executive officer.