Alan Kam, founder and CEO of AB Capital
Fund manager AB Capital has purchased two hotels in Osaka for renovation and repositioning under Marriott International’s midscale City Express brand.
The acquisitions mark Hong Kong-based AB’s 10th and 11th hotels in Japan and the debut of City Express by Marriott in Asia, the companies said Monday in a release. Located in Osaka’s Nishinari ward, the properties were bought in August and are set to reopen next year as City Express by Marriott Osaka Namba South and City Express by Marriott Osaka Shin-Imamiya.
AB has appointed Pacifica Hotels as the franchise operator for the refurbished hotels, as the firm seeks to capitalise on tourism growth driven by this year’s Osaka-Kansai Expo and the construction of casino-focused integrated resorts due to open in 2030.
“This strategic partnership with Marriott transcends a traditional real estate acquisition,” said Alan Kam, founder and CEO of AB Capital. “By redeveloping these assets into the internationally recognised City Express by Marriott, we are addressing a critical gap in Osaka’s midscale accommodation market while delivering exceptional value to our investors.”
Minimalist Chic
No details were disclosed about financial terms, the seller or the precise location of the hotels, but AB said the rebranding would transform the properties into welcoming, thoughtfully designed spaces to serve business and leisure travellers.
Shawn Hill, chief development officer for Asia Pacific ex China at Marriott International
Taking advantage of the generous floorplates of both hotels, the guest rooms and public areas will undergo a full redesign to reflect a minimalist yet stylish aesthetic, featuring art inspired by Osaka’s Tsutenkaku Tower and the surrounding city grid, according to Monday’s announcement.
The deal continues City Express by Marriott’s global expansion after the opening of more than 150 hotels across the US and Latin America under the brand, which adheres to a mantra of convenience meets comfort.
“This strategic partnership reflects our continued commitment to growing strategically across the region and expanding our offerings to meet the evolving needs of travellers,” said Shawn Hill, chief development officer for Asia Pacific ex China at Marriott International.
Pacifica, led by president and CEO Seth Sulkin, develops and operates hotels under various brands with Marriott and IHG. In addition to the latest tie-up with AB and Marriott, the Tokyo-based firm is developing Courtyard by Marriott Hiroshima and actively pursuing acquisitions of midscale hotels for rebranding.
Picking Up Steam
Led by Kam and chief financial officer Bryan Lee, AB is growing its portfolio again after picking up a hot spring resort near Nagano in April alongside local fund manager Kenedix.
Urakusatsu Tou in Kusatsu, Gunma prefecture, has 56 keys and an average room size of 34.7 square metres (374 square feet). Financial details of the acquisition were not provided.
The onsen acquisition followed AB’s last-November buy of a 219-key property near Tokyo’s Haneda airport. Ai Hotel Keikyu Kamata-ekimae sits within a four-minute walk of Keikyu Kamata station, which can transport guests to Haneda airport in roughly 10 minutes, and a nine-minute walk of Kamata station, which connects to Tokyo’s central business district and Yokohama.
AloJapan.com