Boston-based private investment firm Bain Capital announced the sale of Ooedo Onsen Monogatari to US fund Lone Star Group. The transfer of the management rights is expected to take place by the end of February.

Ooedo operates as many as 40 hot spring inns, hotels, theme parks, and various onsens across Japan. Founded in 2001, the business model was to take over the operations of struggling ryokans and hot spring resorts across the country. Pre-pandemic, the growing inbound travel market had the operator eyeing expansion but these plans were swiftly curtailed once the pandemic took hold. The company reported a 10.7 billion Yen loss for the financial year ending February 2021. One of the leading facilities was the Tokyo Odaiba Ooedo Onsen Monogatari. It closed its doors last September, ending 18 years of operations, as the commercial land lease was due to expire. 

The sale price for the shares has not been disclosed. Bain paid approximately 50 billion Yen (approx. US$416 million at the time) for the shares in Ooedo in 2015. In October 2021, Bloomberg reported that Bain is seeking at least US$1 billion from the sale. The firm had reportedly sought offers of more than 100 billion Yen about two years prior. 

Sources:
Kyodo, January 15, 2022.
The Nikkei Shimbun, January 15, 2022.
Bloomberg News, October 8, 2021.

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