KKR, Gaw Sold Hyatt Regency Tokyo to Japan Hotel REIT for Over $813M

Fund managers KKR and Gaw Capital Partners sold the Hyatt Regency Tokyo to Japan Hotel REIT during the third quarter of 2025 in a deal valuing the luxury hotel at approximately JPY 120 billion (then $813.6 million), with market sources confirming the disposal to Mingtiandi on Wednesday.

Manhattan-based KKR and Hong Kong’s Gaw had joined forces to buy the 746-key luxury hotel in Tokyo’s central Shinjuku ward more than two years ago for a reported $409.3 million, in a deal backed by South Korea’s MDM Asset Management.

Mingtiandi reported in February that the owners had held talks on a JPY 100 billion (then $660 million) sale of the Hyatt Regency to JHR, the hospitality trust managed by a unit of Singapore-based SC Capital Partners. In the end, the transaction closed in late July or early August at a value closer to JPY 120 billion, sources said.

News of the deal was first reported Monday by the Wall Street Journal without information on the buyer. KKR and Gaw declined to comment Wednesday when contacted by Mingtiandi. SC Capital had not replied to a request for comment at the time of publication.

Two-Year Carry

NYSE-listed KKR and privately held Gaw announced in March 2023 that funds managed by the two firms had agreed to acquire the Hyatt Regency Tokyo for an undisclosed amount from Odakyu Electric Railway, giving the US private equity giant its first hotel asset in Japan.

Before their exit, KKR and Gaw were said to have been renovating the guest rooms and public areas in the 1980-vintage building, which has a total floor area of 71,512 square metres (769,749 square feet). 

JHR’s acquisition price values the Hyatt Regency at over $1 million per key. The buy marks the Tokyo-listed REIT’s second big-ticket deal in recent months after the trust earlier this year acquired the Hilton Fukuoka Sea Hawk from Mizuho Leasing for JPY 64.4 billion ($420 million).

The Mizuho affiliate, which sometimes acts as an intermediary to purchase properties on behalf of J-REITs, had acquired the 1,053-key Hilton from Singapore sovereign fund GIC in September of last year.

Foreign Capital Still Keen

With Japan on course to receive over 40 million foreign visitors in 2025 — after welcoming a record 36.87 million last year — hospitality assets in the Land of the Rising Sun continue to attract foreign capital, with Blackstone announcing a deal this week to buy the Bespoke Hotel Shinsaibashi in central Osaka for JPY 14 billion ($89.3 million).

The acquisition of the 256-key property from Singapore’s CDL adds to Blackstone’s $1.3 billion hotel portfolio in Japan, following the purchase of the 302-key Nest Hotel Shinsaibashi from Ichigo Hotel REIT late last year.

Earlier this month, Hong Kong fund manager AB Capital revealed its purchase of two hotels in Osaka for renovation and repositioning under Marriott International’s midscale City Express brand. The acquisitions marked AB’s 10th and 11th hotels in Japan and the debut of City Express by Marriott in Asia.