Okinawa hotel sells for 64 million Yen per key – JAPAN PROPERTY CENTRAL K.K.


KDX Realty Investment Corporation is acquiring the trust beneficiary rights to the 340-room Okinawa Prince Hotel Ocean View Ginowan for 22 billion Yen (approx. US$150 million). The sale contract was signed on January 15 with the acquisition to be completed on February 1. The seller was a related party to Kenedix.

The 14-story hotel has a GFA of 24,700 sqm and sits on an 8,000 sqm site across the street from the Ginowan Marina and Okinawa Convention Center. The hotel was recently completed in early 2022. Suite rooms are over 100m2, while the other guest rooms range from 33 ~ 77m2. Seibu Prince Hotels Worldwide will lease the property under a 20-year fixed-term lease under a fixed + variable + incentive arrangement. The variable rent portion allows for a potential upside as the inbound tourism market expands.

The sale price works out to approximately 64.7 million Yen (US$443,000) per key. In mid-2023, Invincible REIT paid 101.2 million Yen per key for the Fusaki Beach Resort Hotel & Villas on Ishigaki Island in Okinawa, and in May 2022, Tokyo-based Daisho reportedly paid somewhere between 66.3 ~ 79.6 million Yen per key for Renaissance Resort Okinawa.

Source: KDX Realty Investment Corporation News Release, January 15, 2024.


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