November 28, 2021

Hoshino Resorts Launches $ 185 Million Hotel Rescue Fund in Japan

TOKYO – Japanese hotel group Hoshino Resorts will create a fund of up to 20 billion yen ($ 185 million) to bail out domestic hotels struggling to fill rooms amid the coronavirus pandemic.

The fund, launched in the summer, will acquire and operate around ten properties.

The tourism industry in Japan has been hit hard by a drop in the number of domestic and inbound travelers. Hoshino Resorts has started reopening locations with social distancing measures in place for staff and visitors.

“Keeping tourism workers employed in preparation for the coronavirus end will be crucial,” said Hoshino Resorts CEO Yoshiharu Hoshino.

The fund will be managed by H&R Asset Solutions, a 50-50 joint venture between Hoshino Resorts and Tokyo investment firm Risa Partners. The fund will raise funds primarily from Japanese institutional investors.

Hoshino Resorts will be in charge of the management of the acquired properties. The company operates approximately 40 properties in Japan and abroad and has a proven track record in transforming hotels and hostels.

Before the pandemic, the hotelier had tried approaches such as offering discounted stays for as little as $ 50 per night to people 35 and under in the resort town of Karuizawa. He is also helping to transform Japan’s oldest prison into an upscale hotel.

Hoshino Resorts has adapted to the disruption of the coronavirus by offering telecommuting vacation packages for those in need of a change of scenery. This idea and others will be used to relaunch hotels in difficulty.

The fund is expected to operate for three to five years, selling successful investments as they go.

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