Simpson Thacher, MHM Advise on $460 Million Sale of Hyatt Regency Tokyo

Simpson Thacher, MHM Advise on $460 Million Sale of Hyatt Regency Tokyo

Odakyu Electric Railway has been advised by Simpson Thacher & Bartlett on the sale of the Hyatt Regency Tokyo for $460 million to investment funds KKR and Gaw Capital Partners, while KKR has been represented by Mori Hamada & Matsumoto.

Kensuke Kudo, a Director at KKR, stated that the investment presents a unique opportunity to acquire an iconic hotel situated in one of the most vibrant districts globally.

“As Japan emerges strongly from the pandemic as a leading travel destination and domestic and international business travel bounce back, we see great potential to refurbish and to enhance the Hotel’s offerings to both corporate and leisure guests while retaining its unique heritage. We are pleased to welcome Gaw Capital, with their hospitality expertise, as strategic partners here, which will enable us to tap into our collective strengths for the Hotel’s transformation,” Kensuke Kudo said.

The Hyatt Regency Tokyo, a luxury hotel with 746 rooms, was constructed in 1980 in Shinjuku, one of Tokyo's busiest business and retail districts, and located next to the Tokyo Metropolitan Government headquarters.

KKR and Gaw Capital Partners anticipate an increase in the number of guests staying at the hotel after Japan lifted COVID-19 restrictions last year.

Isabella Lo, Managing Director, Principal – Investments and Head of Japan at Gaw Capital Partners, added, “We are delighted to collaborate with KKR in a rare opportunity to acquire the iconic full-service Hyatt Regency Tokyo in prime Shinjuku. With a full renovation of the hotel rooms and the public areas, the Hotel will enjoy the upside from the jump in the number of inbound travellers from overseas and its advantageous location in a global commercial hub.”

The team at Simpson Thacher & Bartlett was led by partners Noritaka Kumamoto, Jonathan Stradling, Ian Ho, and Makiko Harunari.