SHOKAI International Successfully Opens up Japanese Market through the Acquisition of Mystays Hotel at Higashi-Shinsaibashi of Osaka
After nearly three months of intensive preparation, SHOKAI International successfully completed the transaction of the Mystays Hotel project at Higashi-Shinsaibashi, Osaka on March 28 2019. This marks that SHOKAI has taken a solid step in its overseas development.
The target of the acquisition is a mid-range hotel in the area of Shinsaibashi, Osaka, with a total floor area of 2,624 square meters and 85 guest rooms. The current occupancy rate is about 90%. Since its opening in 2016, it has been managed by Hotel Mystays, a Japanese hotel chain brand.
Based on research and optimistic judgment on the market prospect, SHOKAI International has been extensively contacted with various information resources since 2017, continuously enhanced its understanding of the Japanese hotel investment market, and gradually clarified and detailed the target project’s volume, location, expected return rate and other indicators. Through investigation and comparison of multiple alternative projects, SHOKAI International selected the target in December 2018, and then entrusted professional companies and partners with the due diligence, negotiations, establishment of the company, external financing, evaluation of assets and so on. The acquisition agreement was finally signed on March 15 2019 and the transaction of the project was completed on March 28 2019.
As the first project SHOKAI invests in Japan, the successful acquisition of Mystays Hotel in Higashi-Shinsaibashi of Osaka has accumulated a large number of firsthand materials and valuable experience, enhanced the ability of the Group’s business development and provided a reliable sample for expanding new markets in the future. The transaction is also of great significance for the Group to optimize its overseas business layout, balance its asset allocation and achieve the goal of overseas development in its 13th Five-Year Plan. It is a milestone for the Group’s overseas business after its success in the United Kingdom and Canada.