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Nomura Real Estate Master Fund Acquires Hospitality Asset in Fukuoka’s Hakata District

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Nomura Real Estate Master Fund Acquires Hospitality Asset in Fukuoka’s Hakata District

Nomura Real Estate Master Fund Acquires Hospitality Asset in Fukuoka’s Hakata District

Nomura Real Estate Master Fund announced it will acquire the hotel property “&HOTEL HAKATA,” located in Reizen-machi, Hakata-ku, Fukuoka City, from B-Lot Co., Ltd. in June 2025. The acquisition price is expected to be JPY 3.8 billion. Simultaneously, the fund will divest four residential rental properties located in Tokyo and Fukuoka, totaling JPY 2.7 billion.

The newly acquired property is located just a 4-minute walk from Gion Station on the Fukuoka City Subway Airport Line, and a 7-minute walk from Kushida Jinja-mae Station on the Nanakuma Line, offering excellent transportation access. Completed in 2021, the 9-story reinforced concrete building has a gross floor area of approximately 585 tsubo (approx. 19,340 sq. ft.). Surrounded by major attractions such as Canal City Hakata, the Nakasu entertainment district, and Marine Messe Fukuoka, the hotel benefits from steady demand from both tourists and business travelers.

Fukuoka City has seen a surge in hotel investment interest driven by increased inbound tourism. In 2024, the total number of overnight stays reached approximately 23.16 million, ranking 8th nationwide. Of these, about 30% were foreign visitors, significantly exceeding the national average, with strong short-stay demand from neighboring Asian countries such as South Korea, Taiwan, and China. The opening of the second runway at Fukuoka Airport, scheduled for March 2025, is expected to further accelerate the recovery in inbound tourism.

With this acquisition, Nomura Master Fund’s hotel portfolio will grow to eight properties totaling JPY 28.3 billion, increasing the sector’s share of the REIT’s portfolio to 2.6%. The expansion into the hotel segment reflects the fund’s confidence in the long-term attractiveness of areas with strong tourism fundamentals, as well as in the operational capabilities of hotel managers. The property will be operated by Local Design Co., which already manages six hotels within Fukuoka City, ensuring operational efficiency and stable occupancy.

The four divested properties, on the other hand, had aging structures that faced declining competitiveness and carried the risk of major future repairs impacting cash flows. The strategic disposal of these assets and reinvestment into high-yield hotel properties aligns with the REIT’s goal to improve distributions and optimize asset efficiency.

Key Facts

  • Property Name: &HOTEL HAKATA

  • Buyer: Nomura Real Estate Master Fund

  • Seller: B-Lot Co., Ltd.

  • Transaction Price: JPY 3.8 billion

  • Location: 9-6 Reizen-machi, Hakata-ku, Fukuoka City, Fukuoka Prefecture

  • Nearest Stations: 4 min walk to Gion Station (Fukuoka Subway Airport Line) / 7 min walk to Kushida Jinja-mae Station (Nanakuma Line)

  • Completion: June 2021

  • Structure: 9 stories above ground, 68 rooms

  • Gross Floor Area: Approx. 585 tsubo (approx. 19,340 sq. ft.)

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