Ichigo Hotel REIT has sold Hotel Vista Premio Kyoto to an undisclosed domestic buyer for 4.5 billion Yen (approx. 42 million USD). The 6-story, 84-room hotel has a total floor area of 3,867 sqm and was built in 2008.
The sale may represent an estimated net return for the buyer somewhere in the 3 ~ 4% range.
Ichigo acquired the hotel from their subsidiary in 2015 for 3.6 billion Yen. Hotel occupancy rates were around 93% at the time.
Kyoto City welcomed 52.75 million domestic and foreign tourists in 2018. Total tourist spending was estimated at 1.3 trillion Yen (approx. US$12 billion USD). The city recorded 15.82 million hotel guests in 2018, up 1.6% from 2017 and the second year in a row to exceed 15 million.
Total hotel rooms in the city have increased from 30,000 in March 2016 to 46,000 by March 2019.
Ichigo Hotel REIT News Release, August 27, 2019.
The Sankei Shimbun, July 28, 2019.
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