Urakusatsu Tou, a modern onsen Ryokan in Kusatu, Gunma Prefecture

We are pleased to announce the successful acquisition of Urakusatsu Tou, a modern onsen Ryokan located in the heart of Kusatsu, one of Japan’s most renowned hot spring destinations. This transaction represents the 9th hotel in Japan acquired by AB Capital and a strategic addition to AB Capital Fund II's expanding portfolio of high-potential hospitality assets.

A Rare Gem in Japan’s Onsen Capital

Situated just a 5-minute walk from the Kusatsu Bus Terminal (the transportation hub for the Kusatsu Onsen town), the 56-key modern onsen Ryokan blends traditional Japanese aesthetics with contemporary comforts. Boasting an average room size of 34.7 sqm, private open-air baths in select suites, and direct access to the famed Jizo Hot Spring, the property offers guests an authentic yet modern onsen experience. The Ryokan underwent a comprehensive renovation in 2022, including full upgrades to its mechanical, electrical, and plumbing systems.

Prime Location with Strong Market Dynamics

Situated in Kusatsu, Japan's top-ranked onsen resort for 21 consecutive years as recognized by the Kanko Keizai (觀光經濟新聞), this property enjoys an exceptional location near the iconic Kusatsu Yubatake. Kusatsu continues to flourish as a premier travel destination, drawing an impressive 3.9 million visitors in 2024—a remarkable 20% increase compared to 2019. The town's strong post-pandemic recovery underscores its enduring appeal, with guest nights in 2024 soaring 18% above pre-COVID levels.

With its prime central location and recent renovations, this Ryokan is perfectly positioned to capitalize on growing traveler demand, leveraging its unique advantages to secure premium pricing in a market characterized by limited supply.

Competitive Operator and Strong Track Record

Founded in 2013, the hotel operator, AB Accommo is a leading domestic player in the hospitality industry in Japan. The company is highly experienced in the field and currently has 34 hotels under management. As of February 2025, the LTM (Mar 2024 to Feb 2025) room revenue and GOP of the hotel both increased 9% compared with the same period one year ago. An analysis of on-hand reservations over the coming months reveals a sustained upward trajectory, highlighting strong market momentum and reinforcing optimism about continued growth in Kusatsu and the asset's potential to outperform expectations.