CapitaLand Ascott Trust (CLAS) recently announced its acquisition of two freehold limited-service hotels in Japan for a total of JPY21 billion ($178.5 million). The two hotels, ibis Styles Tokyo Ginza located in Tokyo and Chisun Budget Kanazawa Ekimae in Kanazawa, were purchased at an 8.3% discount to their independent valuation.
The acquisition of these two hotels is expected to increase the distribution per stapled security (DPS) by 1.6% on a FY2024 pro forma basis. The blended net operating income (NOI) yield for the acquisition is estimated to be 4.3% in FY2024. The purchase was funded by JPY-denominated debt and proceeds from the divestment of four properties in Japan.
The ibis Styles Tokyo Ginza is situated in the heart of Tokyo’s shopping and entertainment district, next to the popular Ginza Six retail mall and the iconic Ginza Wako clock tower. The 224-unit hotel is also close to the well-known Uniqlo global …