Far East Hospitality Trust (FEHT) has announced its expansion into Japan with the acquisition of the Four Points by Sheraton Nagoya, Chubu International Airport. This strategic move marks FEHT’s first foray into the Japanese market, aligning with its long-term strategy to diversify income sources whilst maintaining a focus on Singapore.
The newly acquired property is an upscale hotel featuring 319 rooms, located conveniently near Chubu International Airport in Aichi. Opened in November 2018, the hotel boasts an average room size of 26 square metres and is managed by Marriott International. The acquisition was completed for an initial purchase price of JPY 6.0 billion (approximately $52.8 million), with a potential additional payment of up to JPY 1.75 billion ($15.4 million) contingent on the hotel’s performance over the next three years.
FEHT’s decision to invest in Japan is driven by the country’s burgeoning tourism market and the hotel’s strategic location, which offers excellent accessibility to key transport hubs. The property is a freehold asset with further development potential, enhancing its attractiveness as an investment.
This acquisition represents a significant step in FEHT’s growth strategy, allowing it to leverage Central Japan’s growth opportunities. By diversifying its portfolio, FEHT aims to build resilience and ensure sustainable growth in the competitive hospitality sector.
“`
This news story was carefully selected and published by a human editor, though the content itself was AI-generated. If you spot an error, please report it here.
