EQT announced today that its affiliated real estate fund (“BPEA Real Estate”) has completed the sale of Holiday Inn Express Osaka City Centre Midosuji to a major domestic institutional investor. The Holiday Inn Express Osaka City Centre Midosuji is prominently located directly on Osaka’s main Midosuji Boulevard in Osaka’s bustling Shinsaibashi–Honmachi corridor, one of Japan’s most important inbound tourism destinations.
EQT acquired the property in November 2021 and partnered with IHG Hotels & Resorts (“IHG”) to launch the Holiday Inn Express brand in Japan. EQT implemented a swift rebranding and comprehensive renovation program that upgraded guestrooms and public areas, enhanced sustainability, added a fitness center, modernized IT systems, upgraded exterior landscaping, and introduced locally created artwork throughout the hotel. The renovation program was completed as scheduled in August 2022, coordinating well with Japan’s reopening post-COVID in October 2022. Since then, Holiday Inn Express Osaka City Center Midosuji has continued to grow its ADR (Average Daily Rate) penetration against its competitive set, reinforcing its strong positioning in the market.
Eric Siegel, Managing Director and APAC Head of Hospitality within EQT Real Estate Asia, said: “The sale of Holiday Inn Express Osaka City Centre Midosuji underscores EQT Real Estate’s ability to deliver strong results for investors while contributing to the ongoing growth of Japan’s hospitality sector. From repositioning and rebranding the asset with IHG to steering it through a volatile market, we are proud of the value created, as well as the high guest and employee satisfaction. IHG has been highly collaborative throughout the process, and has provided not only top General Manager leadership, but also a wonderful team to whom we are greatly indebted for their unwavering sense of dedication and professionalism.”
Michio Matsumoto, Managing Director and Head of Japan Real Estate, EQT, added: “Japan is one of EQT’s most important markets, and this transaction reflects both our commitment and our ability to execute successfully here. It also demonstrates the strength of our approach – combining global expertise with local knowledge. We see significant long-term opportunities across Japan’s office, logistics, residential, and hospitality sectors, and look forward to continuing to expand our presence in the market.”
Abhijay Sandilya, CEO IHG ANA Hotels Group said: “Thanks to the vision and stewardship of EQT, Holiday Inn Express Osaka City Center Midosuji is regarded as a brand defining hotel across IHG’s largest and fastest growing brand globally, with over 3,200 Holiday Inn Express hotels. This hotel introduced the brand to the market in 2022 and demonstrates how global brands resonate with domestic and international travelers. We are grateful for EQT’s partnership in successfully repositioning the hotel and are excited to continue managing it under new ownership.”
EQT Real Estate has steadily expanded its presence in Japan, with investments across office, logistics, residential, and hospitality assets in Tokyo, Osaka, and Kyoto. Within EQT’s Real Assets segment, EQT Real Estate acquires, develops, leases, and manages a over 2,000 properties and 400 million square feet, supported by over 440 experienced professionals across 50 locations globally. This extensive footprint and experience reflect EQT’s long-term commitment to delivering value and investing in high-quality real estate opportunities throughout the Asia Pacific region.
AloJapan.com