KKR sells 16-hotel Japan portfolio to institutional investor

KKR (NYSE: KKR) has completed the sale of a portfolio of 16 hotels in Japan, operating under the Four Points Flex by Sheraton brand, to an undisclosed global institutional investor, according to a press release from the firm.

The hotels are located across 11 cities, including Greater Tokyo, Osaka, Kyoto, and Fukuoka. KKR originally acquired the portfolio from Unizo Holdings in 2024 and subsequently renovated and repositioned the properties in partnership with Marriott International, launching the Four Points Flex by Sheraton brand in Asia Pacific through the process.

KJRM, a Japan-based asset management company that KKR acquired in 2022, served as asset manager throughout the acquisition, renovation, and repositioning phases. KJRM will continue in that role following the sale. KKR's hotel operating platform in Japan, K+ Hospitality Management, will also continue to operate the hotels after the transaction.

Value creation initiatives undertaken by KKR during its ownership included a renovation program, restructuring of the hotel operating platform, and the introduction of institutional budgeting and revenue management practices.

David Cheong, Head of Acquisitions for KKR's Asia Real Estate team, said the firm "saw an opportunity to reposition this portfolio for Japan's growing demand for high-quality, accessible accommodation." He added that KKR intends to continue pursuing opportunities in Japan's hospitality sector.

Financial terms of the transaction were not disclosed.

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