CDL acquires 256-room Osaka hotel for $78.5 mil

CDL, or City Developments Limited, has acquired the Bespoke Hotel Osaka Shinsaibashi in Japan for the price of 8.5 billion yen ($78.5 million). The purchase was made via their indirect entity, M&C Sakura TMK. This marks their third hotel acquisition this year, following acquisitions of the Sofitel Brisbane Central in Australia during March and the Nine Tree Premier Hotel Myeongdong II in South Korea in July.

This freehold lifestyle hotel is made up of 256 rooms and is situated in Osaka’s Shinsaibashi commercial district. It is also conveniently located near several shopping districts and malls, such as Midosuji Avenue and Shinsaibashi-suji. Nagahoribashi and Shinsabashi stations are a mere four to six minutes away by foot.

As tourism in Osaka is expected to pick up in the coming years, CDL is optimistic that the Bespoke Hotel’s location is well-positioned to reap the benefits. This can be seen with the city’s World Expo set for 2025, which is estimated to draw in 30 million visitors, and the MGM Integrated Resort to be opened in 2030, which is expected to receive 20 million visitors annually.

Kwek Leng Beng, CDL’s executive chairman, commented, “Japan’s tourism industry has rebounded strongly post-pandemic, and we saw this as a great opportunity to expand our hotel portfolio. Our group owns the Millennium Mitsui Garden Hotel in Tokyo Ginza too, as well as rental apartment assets in Yokohama and Osaka. This particular investment is in line with our group’s strategy to actively grow and diversify our global real estate portfolio.”

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CDL’s move into the Osaka hotel industry shows their commitment to diversifying their real estate portfolio. With Japan’s tourism industry already post-pandemic, this could potentially be a shrewd investment. Universal Studios Japan is home to the third-most visited theme park in the world in 2022, with 12.4 million visitors, and the opening of the MGM Integrated Resort is also expected to further bolster tourism in Osaka.