Kintetsu Group has agreed to sell eight-hotel portfolio in Japan to Blackstone Real Estate’s funds.

The parties have signed a binding memorandum of understanding (MOU) in this regard.

Kintetsu’s hotels considered for sale are located in the country’s tourist destinations including Kyoto, Osaka, and Fukuoka, as well as in the Greater Osaka and Nagoya regions.

The deal is worth JPY60bn ($550m), reported the Nikkei business daily.

Blackstone Group Real Estate Asia head and Asia Pacific chairman Chris Heady said: “This transaction marks Blackstone’s third corporate carve out in Japan, a market that has seen its investment landscape transform over the years as corporations increasingly look to divest their non-core businesses with a trusted partner.”

Under the MOU, Blackstone Real Estate will acquire three hotels in prime locations- Miyako Kyoto Hachijo across Kyoto station; Universal City, adjacent to Universal Studios Japan; and the newly built Miyako Hakata next to Hakata station.

It will also purchase three upscale hotels and two resort hotels that are located within the Greater Osaka and Nagoya regions.

Real Estate Japan head Daisuke Kitta said: “We are very pleased that an established company like Kintetsu selected us as their partner on these marquee assets.

“Our team has established a great relationship with the Kintetsu management team over the past few months, and we look forward to working closely with the experienced teams to further create value for the properties.

“This is also another step towards expanding our footprint in Japan and diversifying our portfolio.”