Nomura Fund Buys Central Osaka Hotel From Thai JV for $241M

Nomura has acquired the Centara Grand Hotel Osaka for JPY 38.5 billion ($241 million) through a fund vehicle, purchasing the asset from a joint venture led by Thailand’s Central Plaza Hotel.

The transaction, completed late last week, saw the buyer take control of the 515-key hotel’s leasehold rights, building and fixtures, according to a filing by SET-listed Central Plaza Hotel, which does business as Centara Hotels & Resorts. Centara holds a 53 percent stake in the JV, alongside Japanese partners Taisei Corporation and Kanden Realty & Development.

Centara, controlled by the Chirathivat family behind Thai mall giant Central Group, will continue to run the Osaka hotel under a lease of roughly 47 years, preserving recurring operating income despite the divestment, DAOL Securities said in a research note.

“We view the sale of the hotel rights in Japan positively, as it will generate an extraordinary profit before taxes and other expenses of THB 1.76 billion ($53.4 million), equivalent to an EPS of 1.30 baht per share,” said analyst Saranrat Panthachotirat.

Flagship Project

Located in Osaka’s central Namba district, the Centara Grand Hotel Osaka is a flagship overseas development for the Thai operator and a key part of its Japan expansion strategy.

The project dates to 2019, when the company partnered with Taisei and Kanden to establish the joint venture and develop the property. Completed in 2023, the 33-storey hotel has benefited from Osaka’s tourism recovery, supported by inbound travel and key events like Expo 2025.

The acquisition, valuing the property at JPY 74.8 million ($468,000) per key, was executed via a managed fund established by Nomura Real Asset, Nomura Real Estate and Nomura Holdings, according to a separate statement by Japan’s largest investment bank.

The agreed price represents a sharp uplift from the asset’s book value of JPY 22.57 billion at the end of 2025, pointing to tightening yields for stabilised hotel assets.

For Nomura Real Asset, a manager of real estate funds exceeding JPY 140 billion, the deal marks the expansion of investment management activity to include hotel assets.

“In light of market conditions and evolving investor needs, the company has been stepping up its efforts to identify and execute new investment opportunities,” it said.

Sustained Investment

The latest transaction comes amid resilient hotel investment activity across Japan, driven by inbound tourism and improving fundamentals.

Japan Hotel REIT has been among the most active buyers, having acquired the 712-key Hyatt Regency Tokyo in March for JPY 126 billion in one of the largest hotel deals ever completed by a J-REIT.

The trust sponsored by Singapore’s SC Capital Partners purchased the Shinjuku property from KKR and Gaw Capital Partners at a discount to its JPY 156 billion appraised value, providing scope for value creation through asset management and a planned refurbishment.

Last year, the Tokyo-listed REIT acquired the Hilton Fukuoka Sea Hawk for JPY 64.4 billion, underscoring its focus on large-scale, full-service hotels in key regional markets.

Japan’s hotel investment volume reached JPY 820 billion in 2025, remaining elevated despite a 33 percent drop from the prior year’s record levels, according to Savills.

The consultancy noted that inbound arrivals hit 42.7 million in 2025, on track to reach the government’s target of 60 million visitors by 2030, with average daily rates and revenue per available room reaching record highs as occupancy levels continued to recover toward pre-pandemic norms.

Savills expects continued growth this year, supported by tourism demand, limited new supply and rising accommodation spending.