Foreign buyers battle for Seibu’s hotels

In the few months since news broke of Seibu Holdings’ plan to offload some of its hotels, Blackstone Group and an investment fund affiliated with Morgan Stanley have emerged as possible buyers. Negotiations are expected to conclude by the end of the year.

In May, Seibu announced plans to sell as many as 40 of its hotels and leisure facilities across the country, with a total book value of over 100 billion Ye (US$900 million). The properties up for disposal include The Prince Park Tower Tokyo, Sapporo Prince Hotel, and Lake Biwa Otsu Prince Hotel. Seibu will continue to operate the hotels after the sale.

The market timing for foreign funds and investors seeking bargains in Japan’s struggling hotel market may be running out, as the government recently announced plans for a roadmap to reopen the economy to domestic travel and events by the end of the year.

Sources:
Bloomberg, September 6, 2021.
The Yomiuri Shimbun, September 6, 2021.

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