Ascendas Hospitality Trust to lease out Tokyo hotel

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/ EdgeProp
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November 30, 2017 5:32 PM SGT
Ascendas Hospitality Trust, through its wholly-owned subsidiary Ascendas Ariake Godo Kaisha, has entered into a memorandum of understanding to lease Hotel Sunroute Ariake and Oakwood Apartments Ariake Tokyo, entirely to Sotetsu Hotel Management, with effect from April 1, 2018.
The properties are currently a dual-brand accommodation, comprising the 790-room Hotel Sunroute Ariake and the 122-serviced apartments at Oakwood Apartments Ariake Tokyo. They are located in the Ariake district. Hotel Sunroute Ariake is also a ‘Tokyo Disneyland Resort Good Neighbour Hotel’ and offers free shuttle bus services to and from Tokyo Disneyland Resort.
The existing fixed-term building lease agreement, with regard to the Hotel Sunroute Ariake portion, will extend to cover the entire hotel. The tenure of the lease agreement will extend to March 2033. The entire hotel will operate under the ‘Sunroute’ brand.
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The operation of the hotel under a single operator will create synergy for the hotel, and help improve the income stability to Ascendas Hospitality Trust, says Tan Juay Hiang, CEO of the managers of the trust.