Singapore-based CapitaLand Ascott Trust has sold another of its Citadines-branded hotels.
Tokyo-based ML Estate — a division of real estate investment trust Mizuho Leasing — has agreed to acquire the 206-room Citadines Central Shinjuku Tokyo for 25 billion Japanese yen ($170 million), or approximately $823,000 per key.
According to The Business Times, the deal is expected to be completed by the end of the year.
“The proposed divestment price represents a premium of around 100% over the property’s book value and approximately 40.4% above the average of two independent valuations. The exit earnings before interest, taxes, depreciation and amortization yield stands at 3.2%,” according to the Singapore-based financial newspaper.
The Citadines Central Shinjuku Tokyo hotel has been sold only once before, according to CoStar. CapitaLand acquired it in October 2014 from Japanese property investment firm Kabushiki Kaisha Oumi for approximately $84 million.
CapitaLand said the property was no longer of core value due to its age and the expense of renovation. The hotel was built in 2008 in Tokyo's tourism district called Kabukicho.
In May, CapitaLand's subsidiary CapitaLand Integrated Commercial Trust Management Ltd. sold the 299-room Citadines Raffles Place Singapore to BlackRock and partner YTL Hotels — a division of Malaysia’s YTL Group — for 280 million Singapore dollars ($217.5 million).
Japan has been Asia’s star hotel and tourism market of late. Last month, on an episode of the CoStar News Hotels podcast, STR area director of Asia-Pacific Jesper Palmqvist said Japan's hotel performance growth has been slowing but year over year is still quite strong.
“We know that their margins have stabilized in a lot of hotels, and so it will be much more about the how they manage their hotels operationally over the next 18 months,” he said.
There has been considerable hotel transactions activity in Japan so far 2025.
Notably, in June, APA Holdings acquired 100% of the shares of Ishin Hotels Group for an undisclosed price. Ishin has a portfolio of 17 hotels and 2,643 rooms.