Daiwa House REIT Investment Corporation has acquired the trust beneficiary rights to a 74-room hotel in Tokyo for 5.114 billion Yen (approx. US$35 million). The appraised NOI yield was 4.0% (3.5% after depreciation).
Miharu Tokyo Hatchobori was sold at a price per key of around 69 million Yen. The hotel has a GFA of 3,665 sqm and sits on 518 sqm of freehold land. The hotel was built in February 2019. It is tenanted under a 20-year master lease agreement with fixed-rent for the first 10 years to be followed by rent reviews at two-year intervals.
The Mimaru brand of hotels offer rooms that are larger than average city hotels. This one has an average room size of at least 38 sqm, accommodating up to 4 guests per room. The largest room is 76 sqm for 8 guests.
In March, a Mimaru hotel in Akasaka sold for 77.9 million Yen per key and an appraised NOI yield of 3.9%.
Source: Daiwa House REIT Investment Corporation News Release, August 31, 2023.
