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Japan Real Estate Insights by estie
Japan Real Estate Insights by estie
Japan Real Estate Insights by estie
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Escon Japan REIT Investment Corporation to Acquire Women-Only Capsule Hotel in Shinjuku

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Escon Japan REIT Investment Corporation to Acquire Women-Only Capsule Hotel in Shinjuku

Escon Japan REIT Investment Corporation to Acquire Women-Only Capsule Hotel in Shinjuku

Escon Japan REIT Investment Corporation will acquire the women-only capsule hotel “nine hours Woman Shinjuku” in Tokyo’s Shinjuku Ward on December 1, 2025. The acquisition price is JPY 2.7 billion, approximately 13% below the appraised value of JPY 3.1 billion. The deal offers an NOI yield of roughly 4.8% based on the acquisition price.

This marks the REIT’s first hotel asset and its first property within walking distance of Shinjuku Station.The property is a nine-story plus two-basement structure (S/RC construction) completed in April 2022, located a two-minute walk from Shinjuku-sanchome Station. It has a Gross Floor Area of approx. 238 tsubo (approx. 8,450 sq. ft.) and 126 guest units.

Operations will continue under nine hours Inc., which has signed a 20-year fixed-term building lease with a GOP-based variable rent structure, enabling rent to move in line with operating performance.

The acquisition aligns with the REIT’s stated strategy of enhancing inflation resilience. The variable rent structure allows revenues to adjust with price levels and hotel sales. The hotel is a wellness-focused facility offering the “9h sleep fitscan” sleep-analysis service, using in-capsule sensors to monitor body movement and snoring and providing AI-generated reports. As a women-only capsule hotel, it maintains consistently high occupancy driven by safety and security.

Nine hours Inc., the operator, runs more than 20 capsule hotels nationwide. Its sleep-analysis service has exceeded 10,000 users, with one of the world’s largest datasets. The global capsule hotel market was valued at USD 260 million in 2024 and is expected to grow to USD 430 million by 2030. In Japan, inbound tourism recovery is driving higher room rates in major cities, prompting operators to differentiate through value-added services.

Key Facts

  • Property Name: nine hours Woman Shinjuku

  • Buyer: Escon Japan REIT Investment Corporation

  • Seller: nine hours Property Fund No.5 GK

  • Acquisition Price: JPY 2.7 billion

  • Appraised Value: JPY 3.1 billion

  • NOI Yield: approx. 4.8% (based on acquisition price)

  • Location: 13-7 Shinjuku 2-chome, Shinjuku-ku, Tokyo

  • Nearest Station: Tokyo Metro Marunouchi & Fukutoshin Lines / Toei Shinjuku Line “Shinjuku-sanchome” Station – approx. 2 minutes on foot

  • Completion: April 2022

  • Number of Floors: 9F / B2 (Structure: Steel & Reinforced Concrete)

  • Gross Floor Area: approx. 238 tsubo (approx. 8,450 sq. ft.)

  • Total Guest Rooms: 126 units

  • Operator: nine hours Inc.

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