One REIT To Acquire Resort Hotel in Okinawa City for JPY 5.6 Billion
One REIT, which is affiliated with Mizuho Trust & Banking, announced on September 28, 2026, that it will acquire the trust beneficiary interest in OKINAWA GRAND MER RESORT, a resort hotel in Okinawa City, Okinawa Prefecture. The planned acquisition price is JPY 5.555 billion, and the acquisition is scheduled for September 30. The seller has not been disclosed, but as of September 28, 2026, the beneficiary listed in the trust register was ML Estate, a wholly owned subsidiary of Mizuho Leasing. ML Estate had acquired the beneficiary interest in March 2026.
The property sits on elevated ground about a 10-minute drive from the Kitanakagusuku Interchange on the Okinawa Expressway and about a 50-minute drive from Naha Airport. Completed in 1992, it has 300 guest rooms. Okinawa Suntory Arena and Okinawa Prefectural Comprehensive Athletic Park are nearby, and the REIT expects the hotel to capture demand from domestic tourists as well as inbound visitors, including U.S. military personnel, sports teams and school trips.
The lessee is KPG HOTEL & RESORT of the Kato Pleasure Group, which operates the hotel. Rent consists of fixed rent and variable rent linked to GOP. After the acquisition, the REIT plans to convert 40 Japanese-style rooms into Western-style rooms, renovate six suites, add a kids' room and refurbish the pool to enhance earning power. The building became legally nonconforming due to a change in the permitted floor area ratio after its completion, and it may not be possible to construct a building of the same size if it is rebuilt in the future.
The appraisal value is JPY 6.88 billion, and the planned acquisition price is approximately 19% below it. The appraisal NOI yield is 7.63%, exceeding the portfolio NOI yield of 5.17% for the fiscal period ended February 2026. After the acquisition, the investment ratio by asset type is expected to be 72.4% office buildings and 27.6% hotels. The REIT also owns DoubleTree by Hilton Naha Shuri Castle in Okinawa Prefecture (see related article: One REIT to Acquire Six Properties Including Five Hotels for Approximately JPY 29.9 Billion, Diversifying Portfolio).
Key Facts
- Property Name: OKINAWA GRAND MER RESORT
- Buyer: One REIT Inc.
- Seller: Undisclosed (beneficiary listed in the trust register as of September 28, 2026: ML Estate Co., Ltd.)
- Asset to Be Acquired: Trust beneficiary interest, etc.
- Planned Acquisition Price: JPY 5.555 billion
- Appraised Value: JPY 6.88 billion, by Daiwa Real Estate Appraisal Co., Ltd. as of September 1, 2026
- Appraisal NOI Yield: 7.63%
- Agreement Date: September 29, 2026 (scheduled)
- Acquisition Date: September 30, 2026 (scheduled)
- Location: 2-8-1 Yogi, Okinawa City, Okinawa Prefecture
- Nearest IC: Okinawa Expressway "Kitanakagusuku IC" approx. 10 minutes by car
- Completion: March 1992
- Number of Floors: 14F / B1 (steel-reinforced concrete construction)
- Number of Guest Rooms: 300
- Area: Site area of approximately 2,646 tsubo (approx. 94,200 sq. ft.) / Gross Floor Area of approximately 7,334 tsubo (approx. 261,000 sq. ft.)
- Lessee: KPG HOTEL & RESORT Co., Ltd.
- Trustee: Sumitomo Mitsui Trust Bank, Limited
