Nomura Real Estate Master Fund Buys Tokyo Best Western for $55 Million
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Nomura Real Estate Master Fund has agreed to acquire the Best Western Hotel Fino Tokyo Akasaka from developer Ichiken for JPY 8.7 billion ($55 million). That prices the 87-key property at JPY 100 million ($626,000) per room. The price represents a 20 percent discount to its July appraisal value of JPY 10.9 billion.
Settlement will take place on 1 September following signing on Thursday, funded with cash on hand. Ichiken carries the asset at JPY 5.3 billion on its books. The sale delivers a gross spread of JPY 3.4 billion before transaction expenses.
Property Cash Flow and Operator
Completed in March 2020, the 13-storey building spans 2,385 square metres in Minato ward. It sits three minutes on foot from Akasaka and Akasaka-mitsuke subway stations. Double rooms make up 86 percent of the inventory. That space includes 22 moderate doubles, 53 superior doubles, 11 superior twins and one accessible deluxe twin.
Polaris Holdings operates the property under a lease where rent is calculated as a fixed percentage of gross operating profit. Foreign visitors represent 95 percent of all guests and stay an average of 3.7 days. Based on an appraisal net operating income of JPY 385 million, the asset yields 4.4 percent on the purchase price.
Portfolio Shift Toward Hospitality
The acquisition expands the trust’s hotel holdings by 31 percent to JPY 37 billion across nine properties. Hospitality now accounts for 3.3 percent of total portfolio assets, up from 2.6 percent. Greater Tokyo hotel exposure increases to JPY 11.1 billion from JPY 2.4 billion. Master Fund holds JPY 1.1 trillion across commercial, logistics, residential and lodging assets.
Recent portfolio moves include Master Fund’s sale of eight residential buildings to Integral Real Estate for JPY 10.8 billion in March 2025 and its March purchase of two Tokyo properties for JPY 8.9 billion. Looking ahead, Minato ward is targeting more than 9 million overnight stays in 2026, up from 8 million in 2024.
Questions & Answers
Q.What was the previous valuation of the Best Western Hotel, and how does the sale price compare?
What was the previous valuation of the Best Western Hotel, and how does the sale price compare?
The hotel was appraised at JPY 10.9 billion in July. The agreed sale price of JPY 8.7 billion represents a 20 percent discount from that previous valuation.
Q.How does this acquisition impact Nomura Real Estate Master Fund's overall portfolio, particularly its hotel holdings?
How does this acquisition impact Nomura Real Estate Master Fund's overall portfolio, particularly its hotel holdings?
This purchase increases the trust’s hotel holdings by 31 percent to JPY 37 billion across nine properties. Hospitality now accounts for 3.3 percent of total portfolio assets, up from 2.6 percent.
Q.Who operates the Best Western Hotel Fino Tokyo Akasaka, and how is the rent structured?
Who operates the Best Western Hotel Fino Tokyo Akasaka, and how is the rent structured?
Polaris Holdings operates the property under a lease agreement. The rent for the hotel is calculated as a fixed percentage of its gross operating profit.
Q.What is the primary customer base for the hotel, and how long do guests typically stay?
What is the primary customer base for the hotel, and how long do guests typically stay?
Foreign visitors account for 95 percent of all guests at the Best Western Hotel Fino Tokyo Akasaka. On average, these guests stay for 3.7 days.
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