HULIC pays 60 billion Yen for Odaiba Hilton

Last December, real estate companies HULIC and Fuyo General Lease acquired the Hilton Tokyo Odaiba hotel for 60 billion Yen (approx. 552 million USD). The seller was US investment firm Elliott Management Corporation.

Aetos Capital acquired the hotel in 2007 from Japan Airlines for 25 billion Yen, before reselling it to Elliott. In 2015, Elliott transferred the operating rights to Hilton Worldwide and the hotel was renamed to Hilton Tokyo Odaiba.

The 453-room hotel opened in 1996 as the Hotel Nikko Tokyo. This hotel, along with the Grand Nikko Tokyo Daiba located across the street, was developed by Itochu Corporation and Japan Airlines in preparation for World City Expo Tokyo ’96, an ambitious plan by the Tokyo Metropolitan Government that was scrapped in 1995 due to concerns over wasteful public spending.

HULIC and Fuyo acquired the nearby Grand Nikko Tokyo Daiba in 2016 for 60 billion Yen. The yield at the time was in the 2% range.

Location

1-9-1 Daiba, Minato-ku, Tokyo

Sources:
The Nikkei Shimbun, January 21, 2018.
Nikkei Business Publications, March 25, 2015.