Pacifica to Develop, Operate Courtyard by Marriott Hotel in Hiroshima

Tokyo-based Pacifica Capital and Pacifica Hotels are partnering with Marriott International on a new 183-key hotel in central Hiroshima, as Japan’s hospitality sector continues to generate deals amid a tourism boom.

Scheduled to open in early 2027, the project will be developed by Pacifica Capital and operated by Pacifica Hotels under a franchise agreement with the Courtyard by Marriott sub-brand aimed at business travellers, the partners said in a release.

The 17-storey Courtyard by Marriott Hiroshima in the city’s central Naka ward will occupy a small plot recently used for paid car parking. The site on Chuo-dori Avenue in Mikawacho district was acquired in April from a Japanese real estate firm for an undisclosed price, with Pacifica forming a club deal of Japanese investors to fund the project.

“Many international investors have lost interest in development post-COVID but buying upscale hotels in Japan is almost impossible so a greenfield project like this is the best way to own a great asset,” Pacifica president and CEO Seth Sulkin said Thursday in a LinkedIn post. “Development risk in Japan is extremely low by international standards and Pacifica is able to deliver attractive returns to investors seeking medium- to long-term holds of high-quality hotels.”

Prime Location

Courtyard by Marriott’s first location in Hiroshima will feature multi-purpose workspaces, an all-day restaurant, a fitness centre and complimentary high-speed WiFi.

Hiroshima railway station, with connections to key cities like Osaka, Kyoto, Kobe and Okayama, is within walking distance of the project site, as are landmarks like the Hiroshima Peace Memorial Park and Hiroshima Castle.

“With its strategic location near commercial centres and main attractions in the city, we are confident that Courtyard by Marriott Hiroshima will be a great choice for business and leisure guests alike,” said Karl Hudson, area vice president for Japan and Guam at Marriott International.

Pacifica’s previous hotel projects include the 158-key Moxy Kyoto Nijo and the 205-key Moxy Tokyo Kinshicho. Both assets were later acquired by banking giant Goldman Sachs.

Blackstone in December bought the Moxy Kyoto Nijo from Goldman, with sources cited by Bloomberg putting the private equity major’s acquisition price at JPY 8 billion ($54 million).

Tourism Recovery

Mingtiandi reported in March that Mori Trust had acquired the 300-key Fairfield by Marriott Osaka Namba — a Pacifica-managed property — from private equity firm PAG, as Japan’s third-largest city anticipates a tourism surge from World Expo 2025 and a planned casino resort.

Also in March, Axe Management Partners completed its JPY 10.7 billion ($75 million) acquisition of a trio of Osaka hotels from Singapore-listed CapitaLand Ascott Trust.

That same month, the Land of the Rising Sun welcomed 3.08 million international travellers, up 11.6 percent compared with March 2019 and the highest monthly figure since record-keeping began in 1964, according to data from the Japan National Tourism Organization.