KKR & Co. and Gaw Capital Partners are in talks to sell the Hyatt Regency Tokyo to Japan Hotel REIT Investment (TYO:8985) for over 100 billion yen, Bloomberg News reported Monday, citing people familiar with the matter.

The firms bought the 712-room Shinjuku hotel for about 60 billion yen in early 2023 from Odakyu Electric Railway (TYO:9007) and are renovating it in phases.

CBRE and SMBC Trust Bank (TYO:8309) are advising on the deal, which could close early this year, though talks continue, the report said.

Japan Hotel REIT, which owns 51 hotels, is capitalizing on strong demand as record tourism and a weak yen push average hotel rates up more than 40% from 2019, according to the report which cited CoStar data.

Japan Hotel REIT has recently released a statement refuting the report, saying it is not discussions to acquire the property.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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