Singapore, 31 August 2023 - City Developments Limited (CDL), through its indirect wholly-owned subsidiary, M&C Sakura TMK, has acquired the Bespoke Hotel Osaka Shinsaibashi for JPY 8.5 billion (approximately S$78.5 million1) or JPY 33.2 million (approximately S$307,0001) per key.
Opened in 2019, the 256-room freehold lifestyle hotel enjoys a prime location in Osaka’s Shinsaibashi commercial district. The hotel is within a 5-minute walk to Midosuji Avenue, lined with major international luxury brands as well as the Parco and Daimaru department stores. The popular Shinsaibashi-suji shopping street is also nearby. Additionally, the Nagahoribashi and Shinsabashi stations are just a 4-minute and a 6-minute walk, respectively.
The lifestyle hotel is well placed to benefit from the positive market recovery momentum amidst robust demand from international visitors. Inbound tourism from the rest of Asia has continued to grow, while the weaker yen has sparked a rebound in US and European tourists, exceeding pre-pandemic levels. China’s recent lifting of restrictions on group tours to Japan is another positive boost for the hotel industry.
Tourism in Osaka is forecasted to strengthen in the coming years. The city will host the 6-month-long World Expo in 2025, expected to attract 30 million visitors. The US$10 billion MGM Integrated Resort with casino, entertainment, shopping, hotel and MICE facilities is projected to welcome 20 million visitors annually when it opens in 2030. Meanwhile, Universal Studios Japan, located in Osaka, was the world's third-most visited theme park in 2022, attracting 12.4 million visitors.
Mr Kwek Leng Beng, CDL Executive Chairman, said, “Japan’s tourism industry has rebounded strongly post-pandemic, and we saw this as a great opportunity to expand our hotel portfolio. Our Group owns the 329-room Millennium Mitsui Garden Hotel in Tokyo Ginza as well as other rental apartment assets in Yokohama and Osaka. This investment is aligned with our Group’s strategy to actively grow and diversify our global real estate portfolio.”
The acquisition of Bespoke Hotel Osaka Shinsaibashi marks the Group’s third hotel acquisition in 2023, following its acquisition of the Nine Tree Premier Hotel Myeongdong II in South Korea and the landmark 5-star Sofitel Brisbane Central in Australia.
