Hilton Grand Vacations Inc., the vacation ownership and experiences company, is strengthening its presence in Japan and marked its entry into Kyoto. Hilton Grand Vacations has acquired the Citadines Kyoto Karasuma-Gojo in Kyoto from CapitaLand Ascott Trust (CLAS).
CLAS sold the 124-room hotel for JPY6.18 billion, divesting it at 40.1% above book value at an exit EBITDA yield of about 0.3%. Proceeds of the sale stand at JPY4.4 billion, with CLAS realizing net gain of JPY0.9 billion.
Situated in the historic Kyoto tourism and business district, the hotel is expected to undergo extensive renovations to feature 63 one-bedroom timeshare units. All the rooms will have kitchens. The property will also offer a fitness center. With renovation slated to begin in Q2 2025, completion is expected in the first quarter of 2026.
Sales of the property will begin from Q2 2025.
JLL assisted in brokering the deal.
The hotel’s divestment was part of CLAS’ “active portfolio reconstitution strategy,” CLAS said.
“The mature property has reached the optimal stage of its lifecycle. We plan to redeploy the divestment proceeds into higher-yielding investments to further grow our returns to Stapled Securityholders. Japan remains a key market for CLAS and is one of our strongest performing markets. We continue to seek opportunities to strengthen our portfolio in Japan,” said Serena Teo, CEO of CapitaLand Ascott Trust Management Ltd. and CapitaLand Ascott Business Trust Management Pte. Ltd.
“The proposed acquisition of lyf Funan Singapore announced last week demonstrates CLAS’ ability to enhance value for Stapled Securityholders by using proceeds from our divestment of Citadines Mount Sophia Singapore at an exit EBITDA yield of 3.2% towards the proposed acquisition of lyf Funan Singapore at a higher yield of 4.7%. In 1H 2024, CLAS also completed the acquisition of Teriha Ocean Stage, a rental housing property in Fukuoka, Japan and fully acquired Standard at Columbia, a student accommodation property in the United States of America. The acquisitions will strengthen our income stream, creating sustainable value for our Stapled Securityholders,” Teo added.
The acquisition of Citadines Karasuma-Gojo is part of Hilton Grand Vacations’ strategy to widen its reach in Japan and demonstrates its commitment in investing in the country, the group said in a statement. Since 2012, Hilton Grand Vacations has YOY member growth in Japan, with the current numbers well over 72,000. While Japanese members have a preference for Hawaii, this hotel will appeal to those looking to travel within the country.
Hilton Grand Vacations’ most recent property in Japan was The Beach Resort Sesoko, a Hilton Club, which opened in October 2021. Its first property in Japan, The Bay Forest Odawara, Hilton Club, opened in 2018.
