In Brief: KKR has completed the sale of its Four Points Flex by Sheraton hotel portfolio in Japan, signaling continued transactional activity involving branded select-service assets and reflecting investor appetite for internationally branded properties in the Japanese market.
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KKR Completes Sale Four Points Flex By Sheraton Portfolio In Japan – Image Credit Marriott International
KKR has completed the sale of a 16-hotel Four Points Flex by Sheraton portfolio in Japan to a global institutional investor.
The portfolio includes 16 hotels in 11 cities across Japan, including Greater Tokyo, Osaka, Kyoto and Fukuoka. The hotels operate under the Four Points Flex by Sheraton brand.
KKR acquired the portfolio from Unizo Holdings in 2024 and subsequently carried out a renovation and repositioning program. In partnership with Marriott International, KKR launched the Four Points Flex by Sheraton brand in Asia Pacific, giving the hotels access to Marriott’s distribution network and Marriott Bonvoy loyalty base.
The hotels are located near transportation links, dining locations, and business and leisure districts amid a rebound in international and domestic tourism in Japan.
KJRM served as asset manager for the portfolio from acquisition through renovation and repositioning, and will continue as asset manager following the sale. KKR acquired KJRM in 2022. KJRM intends to work with the new owner to add stabilized Japan hotel investments to the portfolio over time.
K+ Hospitality Management will continue to operate the hotels following the sale.
The renovation program included work to modernize the properties and establish a consistent guest experience across the portfolio. KKR also enhanced the management team and reorganized the corporate structure of the hotel operating platform.
Other measures included introducing institutional budgeting, reporting and revenue-management practices to support pricing and occupancy management. KKR also strengthened the organization and enhanced human-resources practices to support operational performance.
KKR’s Japan real estate holdings include Sapporo Real Estate, which has commercial, office and residential assets, including Yebisu Garden Place in Tokyo. Its holdings also include multifamily properties and office assets across Japan.
Additional details of the transaction were not disclosed.