Case Study | Hotel Grande WBF Hakata: Brokerage

We didn’t just see a commercial property. We saw the potential of the property to enhance investment returns.

Location (City)	Asset Type	Transaction Date	Size (Sqm)	Value (USD)
Hakata, Fukuoka	Hotel	November 2020	5,109.58	$30 - 40 million

Services provided: Brokerage

Buyer: AP Asset Management

Seller: Hotel WBF Group

The Challenge

Perception of low returns

Profitability in the hotel market has declined from the last year, based on indicators such as ADR (average daily rate) or OCC (occupancy) rates. Since March 2020, the number of hotel investors has decreased.

The Strategy

Focus on hotel assets, which are comparatively less attractive than office, logistics or residential assets.

The Solution

Leveraging strong relationships with domestic banks was one of the best solutions for sourcing hotel assets, as the timing of mandated sales of such assets in Japan is led by the financial lenders.

The Result

Once Colliers received relevant information on the sale of the asset from a domestic bank, the team quickly introduced the asset to the client, with whom Colliers Japan had a close relationship. This allowed for the seamless, and ease of, securing a letter of intent (LOI) from the client.

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