Listed Real Estate Asia, KT Capital Group

Jacob Cheng

Listed Real Estate Asia

KT Capital Group

Principal investments and advisory firm that focuses on connecting the CIS countries with East Asia.

Principal investments and advisory firm

Equity Bottom-Up

Japan Hotel Reit Investment / Equity Bottom-Up

<ul>
<li>The JPY Yen has depreciated 25% against USD for the last 5 years, this has made Japan an extremely attractive destination for foreigners</li>
<li>The Japan’s hotel sector is known by its low supply, partly due to higher development cost and labour shortage.  We think REVPAR and ADR will continue to be strong</li>
<li>We like Japan Hotel REIT and Invincible for their hotel exposure.  We think investors should closely monitor the Yen movement as well as BOJ policy</li>
</ul>


The JPY Yen has depreciated 25% against USD for the last 5 years, this has made Japan an extremely attractive destination for foreigners
The Japan’s hotel sector is known by its low supply, partly due to higher development cost and labour shortage.  We think REVPAR and ADR will continue to be strong
We like Japan Hotel REIT and Invincible for their hotel exposure.  We think investors should closely monitor the Yen movement as well as BOJ policy


The Yen's Volatility & Japanese Hotel REITs: A Tourism-Driven Comeback Story

<ul>
<li>In April 2024, we published a few notes on Japan REITs on the back of interest rate cut cycle and weaker Asian currencies</li>
<li>Today, the macro environment has shifted, Japan has started a rate hike cycle. </li>
<li>Japan Hotel REITs will suffer due to negative impact on tourism and higher cap rate assumptions</li>
</ul>


In April 2024, we published a few notes on Japan REITs on the back of interest rate cut cycle and weaker Asian currencies
Today, the macro environment has shifted, Japan has started a rate hike cycle. 
Japan Hotel REITs will suffer due to negative impact on tourism and higher cap rate assumptions


Japan Hotel REIT: Interest Rate Hike Will Hurt Tourism, with More Hikes to Come.  We Turn Bearish

Asia Real Estate News Tracker, Asia Real Estate Tracker

Asia Real Estate Tracker

Asia Real Estate News Tracker

Tracking developments across Asia's regional real estate markets

<ul><li>KKR and Gaw are in talks for a $660M sale of Hyatt Regency Tokyo to Japan Hotel REIT, potentially reshaping the hospitality market.</li><li>Singapore worker housing rents have surged by 10.8% in the second half of 2024, attributed to a significant increase in labor influx.</li><li>Despite falling rent trends in APAC office markets, Australia and Japan have shown resistance, according to Knight Frank's report.</li></ul>

KKR and Gaw are in talks for a $660M sale of Hyatt Regency Tokyo to Japan Hotel REIT, potentially reshaping the hospitality market.Singapore worker housing rents have surged by 10.8% in the second half of 2024, attributed to a significant increase in labor influx.Despite falling rent trends in APAC office markets, Australia and Japan have shown resistance, according to Knight Frank's report.

Asia Real Estate Tracker (07-Feb-2025): KKR & Gaw negotiating $660M sale of Hyatt Regency Tokyo.

Asia L/S Equity PM/Macro/Thematic Idea Generation

Rikki Malik

Thematic (Sector/Industry)

<ul>
<li>The BoJ's reluctance to raise rates ensures negative real rates for longer</li>
<li>Supply and Demand for both commercial and residential are skewed towards price rises in central Tokyo and other urban areas</li>
<li>Property prices are at a big discount to other major developed countries</li>
</ul>


The BoJ's reluctance to raise rates ensures negative real rates for longer
Supply and Demand for both commercial and residential are skewed towards price rises in central Tokyo and other urban areas
Property prices are at a big discount to other major developed countries


Property Sector a Winner in Japan Reflationary Era

<ul><li>KKR and Gaw Capital Partners have sold the Hyatt Regency Tokyo for over $813 million.</li><li>The partnership is also acquiring six logistics parks in India for a total of $336 million.</li><li>JD.com's logistics management unit has received approval for a potential $500 million IPO in Hong Kong.</li></ul>

KKR and Gaw Capital Partners have sold the Hyatt Regency Tokyo for over $813 million.The partnership is also acquiring six logistics parks in India for a total of $336 million.JD.com's logistics management unit has received approval for a potential $500 million IPO in Hong Kong.

Asia Real Estate Tracker (27-Nov-2025): KKR and Gaw sold Hyatt Regency Tokyo for over $813M.

Japan

Japan Hotel REIT Investment Corporation is a real estate investment trust(REIT) which invests in securitized real estate products. The Company mainly invests in real estate properties used in hotels.

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Japan Hotel Reit Investment (8985 JP)

The Yen's Volatility & Japanese Hotel REITs: A Tourism-Driven Comeback Story

JPY has depreciated 25% against USD for last 5 years. The hotel sector, which is characterized by its limited supply, will see strong REVPAR and...

Jacob Cheng

Japan Hotel REIT: Interest Rate Hike Will Hurt Tourism, with More Hikes to Come. We Turn Bearish

We turn bearish on Japan Hotel REIT, on the back of a rate hike cycle. Rates increase lead to stronger Yen which will hurt tourism. We turn...

Jacob Cheng

Asia Real Estate Tracker (07-Feb-2025): KKR & Gaw negotiating $660M sale of Hyatt Regency Tokyo.

KKR and Gaw in talks to sell Hyatt Regency Tokyo, Singapore worker housing rents rise 10.8%, Aus & Japan office markets bucking regional trend.

Asia Real Estate Tracker

Property Sector a Winner in Japan Reflationary Era

BoJ keeps real rates negative, driving up property prices in urban areas like central Tokyo, where supply and demand is mismatched

Rikki Malik

Asia Real Estate Tracker (27-Nov-2025): KKR and Gaw sold Hyatt Regency Tokyo for over $813M.

KKR and Gaw Capital Partners sold the Hyatt Regency Tokyo for over $813M, are acquiring six logistics parks in India for $336M, and JD.com’s...

Asia Real Estate Tracker

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

The Yen's Volatility & Japanese Hotel REITs: A Tourism-Driven Comeback Story

JPY has depreciated 25% against USD for last 5 years. The hotel sector, which is characterized by its limited supply, will see strong REVPAR and...

Jacob Cheng

Japan Hotel REIT: Interest Rate Hike Will Hurt Tourism, with More Hikes to Come. We Turn Bearish

We turn bearish on Japan Hotel REIT, on the back of a rate hike cycle. Rates increase lead to stronger Yen which will hurt tourism. We turn...

Jacob Cheng

Asia Real Estate Tracker (07-Feb-2025): KKR & Gaw negotiating $660M sale of Hyatt Regency Tokyo.

KKR and Gaw in talks to sell Hyatt Regency Tokyo, Singapore worker housing rents rise 10.8%, Aus & Japan office markets bucking regional trend.

Asia Real Estate Tracker

Property Sector a Winner in Japan Reflationary Era

​BoJ keeps real rates negative, driving up property prices in urban areas like central Tokyo, where supply and demand is mismatched

Rikki Malik

Asia Real Estate Tracker (27-Nov-2025): KKR and Gaw sold Hyatt Regency Tokyo for over $813M.

KKR and Gaw Capital Partners sold the Hyatt Regency Tokyo for over $813M, are acquiring six logistics parks in India for $336M, and JD.com’s...

Asia Real Estate Tracker

BoJ keeps real rates negative, driving up property prices in urban areas like central Tokyo, where supply and demand is mismatched