Japan Hotel REIT raises JPY62 billion to acquire Hyatt Regency Tokyo

The hotel lounge and bar at Hyatt Regency Tokyo. The property is said to have significant potential for value creation. (Image: Hyatt Regency Tokyo website)
The hotel lounge and bar at Hyatt Regency Tokyo. The property is said to have significant potential for value creation. (Image: Hyatt Regency Tokyo website)
Tokyo-listed Japan Hotel REIT, sponsored by Singapore-based real estate investment manager SC Capital Partners, has completed a JPY62 billion ($503 million) global equity raise to acquire Hyatt Regency Tokyo, a landmark hotel in Shinjuku.
The proceeds will be used mainly to fund the acquisition, which gives Japan Hotel REIT a rare strategic opportunity to secure an iconic Tokyo hotel at a “compelling” entry price that is 20% below appraisal value, SC Capital said in a March 5 release.
Hyatt Regency Tokyo is a 712-key hotel that was recently refurbished in June 2025. It spans 28 stories and offers suites and studios, with panoramic views of Mount Fuji or the Tokyo skyline.
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It has significant potential for value creation through proactive asset management, including operational improvements and targeted capital expenditure, according to the press release.
For the equity raise, the REIT issued 807,000 units in a combined domestic and overseas offering, making it one of the larger capital raises in the J-REIT hospitality sector.
The secondary offering was first announced on Feb 25 and priced within about a week. This reflects strong demand from both domestic and international institutional investors, as well as continued investor interest in Japanese hospitality amid the strong recovery in inbound tourism and improving operating performance in major gateway cities, SC Capital noted.
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