Strategy/Funds
Strategy/Funds
AB Capital Investment Limited is a leading hospitality private equity firm specializing in the dynamic Japanese hospitality sector. We provide investors with access to compelling growth opportunities through our focused fund strategies, leveraging deep local expertise to deliver superior risk-adjusted returns and stable distributions from rental income.
Our investment approach centers on three core strategies – Core Plus, Value-Add, and Rebranding – enabling us to identify and capitalize on a diverse range of opportunities within the Japanese hospitality market. Due to the risk in rising development costs and timing, we only invest in existing hotels. Nevertheless, AB Capital remains open to exceptional deals involving forward commitment and development, provided they exhibit an extraordinary risk-return profile.
- Core Plus: Targets stable yield with low entry prices, favorable lease and financing terms, and potential cap rate compression.
- Value-Add: Focuses on fixed + variable lease structures, variable rent, or management contracts to capture upside from inflation, increased inbound tourism, and operational improvements.
- Rebranding: Involves significant renovations and repositioning to higher-scale hotels with increased ADR/RevPAR.
Our AB Capital Fund I, established in 2020, focuses on acquiring assets with resilient operational performance during the pandemic and stable income generation. We are pleased to share that all three hotels within Fund I had been fully divested and achieved excellent returns for our investors.
Our AB Capital Fund II is a Cayman Islands exempted limited partnership that primarily employs the 3 strategies above. This fund invests in properties with attractive fundamentals and strong growth drivers, enhancing value through active asset management. We prioritize risk mitigation, capital preservation, and value creation, adapting our investment themes based on evolving market conditions.
