Foreign fund sells Sendai hotel

A business hotel developer and operator called Shogetsu Sangyo announced that they have purchased Hotel Hokke Club Sendai from a foreign fund.

Shogetsu runs the “Hotel Green Chain” business hotels in Sendai City. They also purchased Hotel Bel Air Hirosedori in Aoba-ku this month, and made several acquisitions at the end of last year in the hopes of realizing better occupancy rates from an increase in guests related to the reconstruction of the disaster affected areas.

Hokke Club is 11 stories and has 151 hotel rooms, along with a hall, meeting room and restaurant. Shogetsu acquired the beneficiary rights for the building and land from the foreign fund in October, 2011.

The hotel is currently being leased to Tokyo-based “Hokke Club”. Once the lease ends, the building will be renovated and will then be re-branded as a Green Chain hotel.

The estimated purchase price for both the Hokke Club Hotel and the Hotel Bel Air is in the billions of Yen. In March, 2007, the hotel was purchased by a limited foreign company (godo-kaisha) called Dolphin for an undisclosed sum.

The Shogetsu company president said that he believed now was a good time to make acquisitions as the Fukushima Daiichi nuclear disaster is having a negative affect on the demand from foreign funds.

Sources:
Nikkei Business Publications, July 31, 2007.
The Kahoku Shimpo, January 21, 2012.