On February 28, the Nikkei Shimbun newspaper reported that the Odakyu Electric Railway company is considering the sale of the Hyatt Regency Tokyo hotel. The total sale proceeds of the hotel, along with partial ownership of a neighboring office building, could be in the 100 billion Yen (approx. US$870 million) range. Several funds have already expressed interest.
Located in Shinjuku, the Hyatt Regency Tokyo and neighboring Odakyu Daiichi Seimei Building were both completed in 1980. The 746-room hotel building was originally named Odakyu Century Building and was the very first Hyatt-branded hotel to open in Japan. The three Swarovski crystal chandeliers in the lobby cost around 50 million Yen each back in 1980. In 200 the hotel’s name was changed to Century Hyatt Tokyo, and re-named Hyatt Regency Tokyo in 2007.
Odakyu will continue to have a strong presence in Shinjuku. The railway company is embarking on a 200 billion Yen redevelopment of its former department store by the west exit of Shinjuku Station. Construction of the 260-meter tall office tower will start this October.
This isn’t the first major hotel sell-off during the pandemic. Earlier in February, Singapore sovereign wealth fund GIC was named as a potential buyer for the majority of Seibu Holdings’ hotels. The sale of around 30 hotels, golf and ski resorts is expected to take place this summer, with a sale price somewhere around 150 billion Yen.
Source: The Nikkei Shimbun, February 28, 2022.
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