Funds managed by KKR have sold a group of 16 hotels in Japan operating under Marriott International’s Four Points Flex by Sheraton brand to a global institutional investor.
The parties have not disclosed the financial terms of the transaction.
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The hotels are spread across 11 cities, including Greater Tokyo, Osaka, Kyoto, and Fukuoka. The properties are located near transport connections, restaurants, and business and leisure areas.
KKR acquired the portfolio from Unizo Holdings in 2024.
It then carried out refurbishment work and repositioned the properties.
KKR also worked with Marriott International to introduce the Four Points Flex by Sheraton brand in Asia Pacific, giving the hotels access to Marriott’s distribution network and Marriott Bonvoy loyalty programme.
KJRM, an asset management company in Japan acquired by KKR in 2022, managed the portfolio during the acquisition, refurbishment, and repositioning process.
It will continue in that role after the sale and plans to work with the new owner on adding further stabilised hotel investments in Japan over time.
K+ Hospitality Management, KKR’s hotel operating platform in Japan, will remain responsible for operating the properties.
Following the acquisition, KKR refurbished the hotels, adjusted the management structure, and reorganised the corporate arrangements of the hotel operating platform.
It introduced budgeting, reporting, and revenue management procedures, and made changes to the organisation and human resources practices.
KJRM supported the asset management work while K+ Hospitality Management provided operational support during the refurbishment, repositioning, and subsequent running of the hotels.
KKR Asia real estate team acquisitions head David Cheong said: “We saw an opportunity to reposition this portfolio for Japan’s growing demand for high-quality, accessible accommodation, and we’re proud of what we’ve built with Marriott, leveraging KJRM and K+ Hospitality’s capabilities.
“We look forward to continuing to grow both platforms and pursuing new opportunities across Japan’s hospitality sector. Japan remains one of the most important markets for our real estate strategy, and we have strong conviction in the long-term fundamentals of the country’s hospitality and broader real estate sector.”
