Randor Hotel Osaka Namba Suites

Randor Residential Hotel Kyoto Suites

AB Capital is thrilled to announce the successful acquisitions of our 1^st and 2^nd hotels of AB Capital Japan Hospitality Fund II, namely Randor Hotel Osaka Namba Suites ("Randor Osaka") and Randor Residential Hotel Kyoto Suites ("Randor Kyoto"). This marks the 5^th and 6^th hotel that AB Capital acquire in Japan.

Randor Osaka: Situated in the heart of Osaka City and to the south of the bustling Namba district, Randor Osaka offers accessibility and prestige. It was recognized by Jalan, one of Japan's largest online travel agents, as one of the top-selected hotels in Osaka in 2022. It is also a 2-minute walk from the Osaka Metro Ebisucho station. Nearby attractions include Shinsekai (新世界), a traditional entertainment area; Kuromon Market (黒門市場), Osaka's largest fresh food market; and Tennoji (天王寺), a major commercial district with direct train connections to Kansai International Airport and Nara (奈良). The area is also experiencing significant redevelopment, highlighted by the recent opening of Caption by Hyatt Namba Osaka in June 2024.

Randor Kyoto: This property is conveniently situated in the Kyoto Station area, with easy access to major sightseeing areas such as Gion (祇園), Higashiyama (東山), and Shijo Karasuma (四条烏丸). The neighborhood is also rapidly evolving into a vibrant arts hub, following the relocation of Kyoto City University of Arts in October 2023. The local government has unveiled plans to further enrich this cultural landscape with new additions including an art gallery, a café and student accommodations, and is also inviting the prestigious culinary institute, Le Cordon Bleu, to set up in this new hub. The globally renowned digital content creator group, teamLab, is also expected to open its digital Art Museum in the area soon. These cultural and artistic developments are expected to significantly boost local and tourist visits, enhancing the area’s popularity and appeal.

Apartment-Style Living: Both hotels offer spacious, apartment-style rooms equipped with modern amenities such as in-room laundry and fully-equipped kitchens. These features cater to a growing segment of family tourists and long-stay guests, providing a comfortable, home-like environment at competitive rates.

Strategic Market Position and Investor Interest: The growing appeal of apartment hotels is evident from significant investments by major institutional investors and REITs, such as Japan Hotel REIT Investment Corporation’s (8985.T) acquisition of Mimaru Tokyo Shinjuku West recently in July 2024, United Urban Investment Corporation’s (8960.T) acquisition of Randor Hotel Hiroshima Prestige in June 2024, and Nomura Real Estate Master Fund, Inc’s (3462.T) acquisition of MIMARU SUITES Tokyo Asakusa in April 2024, signalling robust market confidence.

Anticipated Growth from Global Events: Due to their strategic locations, both hotels are positioned to capitalize on major upcoming events like the World Expo 2025 and Japan’s first casino integrated resort in 2030, both are set to take place in Osaka. These events are anticipated to attract global attention and visitors to the region.

These transactions not only demonstrate our expertise in uncovering hidden gems in the Japan hospitality market, but also our deep commitment to the segment and to driving substantial value for our investors.