Private equity company Lone Star Funds has revealed the completion of the acquisition of a 175-room hotel in Yokohama, Japan, for an undisclosed amount.
Purchased by an affiliate of Lone Star Real Estate Fund VII from Singapore-based Mapletree Investments, the property is part of a larger Mitsui Fudosan-led mixed-use redevelopment project in Yokohama’s Minato-Mirai submarket.
Go deeper with GlobalData
Lone Star Commercial Real Estate global head Jérôme Foulon said: “This is a good example of the value-add investment approach that Lone Star has a long track record of executing upon in Japan.
The hotel, which opened in November 2020, is situated within 46 to 51 floors of a condominium tower that also houses more than 1,176 residential units.
Currently operated by a serviced apartment provider, the asset will undergo a transformation under Lone Star’s ownership.
The private equity company plans to convert the property into an upscale branded hotel by the fourth quarter of 2025.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe hotel’s average room size exceeds 560ft², larger than competing hotels in the area, which Lone Star intends to leverage in its repositioning strategy.
Lone Star Japan head Mitsuo Matsunaga said: “In order to further improve the quality of this high-end asset, Lone Star will redesign the value proposition of the property and execute a significant repositioning plan.”
Lone Star’s history in Japan extends over 28 years, with the company committing approximately $9.6bn in equity capital to nearly 90 investments in the region.
The acquisition in Yokohama adds to Lone Star’s recent activities, including the sale of Tokyo Beta, a rental property asset in Tokyo.
In May 2017, Lone Star Funds also undertook a $55m renovation project, enhancing Hyatt Place and Hyatt House properties managed by Aimbridge Hospitality.
