Hotels continue to be among the most attractive asset classes for both global and domestic investors in Japan, but rising construction costs and a scarcity of investable assets are transforming the ways that even the most experienced players are approaching the market.
To explore strategies for achieving higher yields from hotel investments in Japan, Mingtiandi has invited a group of senior executives from The Ascott Ltd, Pegasus Capital, Pacifica Capital KK and CREAL Asia to join a panel, “Hotel Strategies – Value-Add vs Development,” as part of the Mingtiandi Tokyo Forum on 5 November.
The panel will look at options for investors to limit risk by acquiring and repositioning existing assets to boost returns, particularly by more strategic use of branding, as well as discussing options for taking on more development risk to enjoy higher yields as deals for core assets become more challenging.
The hospitality investment panel is part of a full day of discussions at the Mingtiandi Tokyo Forum, which also features speakers from Brookfield Asset Management, Warburg Pincus, ORIX Life, Development Bank of Japan and other investors. More than 250 industry leaders are expected to attend the forum, with tickets available at the link above.
Booming Tourism, Tightening Yields
Tourists spent JPY 4.8 trillion in Japan during the first half of this year, marking a nearly 23 percent increase, according to government figures. However, investors are seeing continued cap rate compression on hospitality investments as competition grows in the asset class.
An Ascott property in Tokyo’s Marunouchi area (Image: Ascott Ltd)
To find out more about how experienced investors are overcoming these challenges, Bloomberg journalist Lisa Du will moderate the panel, which starts at 14:25 on the 5th.
Joining the discussion from The Ascott will be Vivian Wong, a vice president who heads business development for Japan and Korea with the unit of CapitaLand Investment. The Ascott has been active in Japan for more than two decades, and operates rental residential and hospitality assets in the country under its Ascott, Oakwood, Citadines, lyf and Somerset brands, having more recently introduced its high-end Crest Collection marque in tourist gateways such as Tokyo, Osaka, Kyoto, Fukuoka, and Yokohama.
Representing Tokyo-based Pacifica Capital in the panel will be president and CEO Seth Sulkin, a veteran of more than 30 years investing in Japanese real estate who has developed hotels across multiple Japanese cities, in addition to leading Pacifica Hotels GK, a franchisee operator of Marriott and IHG Hotels.
From Tokyo-listed CREAL, Daniel Wei, head of the company’s Singapore business, will join the discussion to share from the investment manager’s experience developing large-scale and boutique hotels in Japan, as well as having invested in a larger portfolio of properties across asset classes.
To provide a fund manager’s perspective, Perry Tan, founder and managing director of Pegasus Capital will contribute his insights to the session after having sourced, acquired, and executed transactions involving $150 million in gross assets since founding the company in 2018.
Streaming and Recordings Available
For real estate investment enthusiasts unable to join the Tokyo Forum, Mingtiandi will make key sessions, including interviews with executives from Brookfield Asset Management and Warburg Pincus, as well as the keynote panel with leaders from EQT, Invesco, Alyssa Partners, TE Capital and Tokyo Trust Capital available live via streamed video.
Access to the video stream is available for all registered Mingtiandi users and registration is free of charge.
The entire program will be recorded at cinema level quality with each session made available on Mingtiandi.com in the days following the event. Key points of each panel and interview will also be made available in three-minute recap videos shortly after conclusion of the forum.
