On February 28, 2022, the Nikkei Shimbun newspaper reported that the Odakyu Electric Railway company is considering the sale of the Hyatt Regency Tokyo hotel. The total sale proceeds of the hotel, along with partial ownership of a neighboring office building, could be in the ¥100 Billion (approx. US$870 million) range. Several funds have already expressed interest.
Located in Shinjuku, the Hyatt Regency Tokyo and neighboring Odakyu Daiichi Seimei Building were both completed in 1980. The 746-room hotel building was originally named Odakyu Century Building and was the very first Hyatt-branded hotel to open in Japan. The three Swarovski crystal chandeliers in the lobby cost around ¥50 million each back in 1980. In 2000 the hotel’s name was changed to Century Hyatt Tokyo, and re-named Hyatt Regency Tokyo in 2007.
Odakyu will continue to have a strong presence in Shinjuku. The railway company is embarking on a ¥200 billion redevelopment of its former department store by the west exit of Shinjuku Station. Construction of the 260-meter tall office tower will start in October 2022. This isn’t the first major hotel sell-off during the pandemic. Earlier in February, 2022 Singapore sovereign wealth fund GIC was named as a potential buyer for the majority of Seibu Holdings’ hotels. The sale of around 30 hotels, golf and ski resorts is expected to take place in summer, 2022 with a sale price somewhere around ¥150 billion.
For more on this story, go to Japan Property Central.