Japan Hotel REIT to Swap Hotel Assets in Okinawa and Osaka Worth JPY 45.2 Billion

Japan Hotel REIT Investment Corporation decided on July 17, 2026, to sell The Beach Tower Okinawa in Chatan, Okinawa Prefecture, and to acquire Candeo Hotels Osaka Namba in Chuo Ward, Osaka City. The total transaction value is JPY 45.22 billion.

The Beach Tower Okinawa, the property being sold, is a resort hotel located within the Okinawa Chatan American Village complex. Acquired in June 2006, the property has a planned disposition price of JPY 30.9 billion and is expected to generate a gain on sale of about JPY 24 billion. The asset manager, Japan Hotel REIT Advisors, decided to sell at this timing even while noting potential upside from an operator change or rebranding.

Candeo Hotels Osaka Namba, the property being acquired, is a limited-service hotel a five-minute walk from Nippombashi Station and a ten-minute walk from Namba Station on the Osaka Metro. Completed in 2017, the 17-story building has 496 guest rooms. The planned acquisition price is JPY 14.32 billion, and the property will be acquired from Hikari Hotel LLC. The tenant is Candeo Hospitality Management, which operates the Candeo Hotels brand, under a fixed-term building lease with fixed rent. By acquiring a relatively new hotel in the heart of Osaka's Minami district, the investment corporation expects stable income from fixed rent and room to raise rent upon future lease expiry.

Following the transaction, the investment corporation's portfolio will comprise 52 properties with 15,058 guest rooms and a total acquisition-price basis of approximately JPY 641.0 billion.

Disposition Property Overview

• Property Name: The Beach Tower Okinawa
• Seller: Japan Hotel REIT Investment Corporation
• Buyer: Mihama Terroir TMK
• Transaction Form: Trust beneficiary interest in real estate
• Location: 8-6 Mihama, Chatan-cho, Nakagami-gun, Okinawa
• Access: 40 minutes by car from Naha Airport
• Contract Date: July 17, 2026
• Planned Disposition Date: July 31, 2026
• Planned Disposition Price: JPY 30.9 billion
• Book Value: JPY 6.315 billion
• Appraisal Value: JPY 10.4 billion (December 31, 2025, Japan Real Estate Institute)
• NOI Yield: approximately 1.6%
• Completion: March 2004
• Number of Floors: 24F (steel-reinforced concrete construction)
• Use: Hotel
• Area: Site area of approximately 3,098 tsubo (approx. 110,200 sq. ft.) / Gross Floor Area of approximately 6,092 tsubo (approx. 216,800 sq. ft.)
• Number of Tenants: 1
• Lease Type: Fixed and variable rent
• Occupancy: 100.0% (based on leased area)

Acquisition Property Overview

• Property Name: Candeo Hotels Osaka Namba
• Buyer: Japan Hotel REIT Investment Corporation
• Seller: Hikari Hotel LLC
• Transaction Form: Trust beneficiary interest in real estate and movable property associated with the hotel
• Location: 2-2-5 Higashi-Shinsaibashi, Chuo Ward, Osaka City, Osaka
• Nearest Stations: Five-minute walk from Nippombashi Station on the Osaka Metro Sennichimae Line / ten-minute walk from Namba Station on the Osaka Metro Midosuji Line
• Contract Date: July 17, 2026
• Planned Acquisition Date: August 3, 2026
• Planned Acquisition Price: JPY 14.32 billion
• Appraisal Value: JPY 14.9 billion (May 31, 2026, Japan Real Estate Institute)
• NOI Yield: approximately 3.4%
• Completion: May 2017
• Number of Floors: 17F (steel-frame construction)
• Use: Hotel
• Area: Site area of approximately 507 tsubo (approx. 18,000 sq. ft.) / Gross Floor Area of approximately 4,264 tsubo (approx. 151,700 sq. ft.)
• Number of Tenants: 1
• Lease Type: Fixed rent
• Occupancy: 100.0% (as of end of December 2025, based on area)