The global investment firm KKR has teamed with Marriott International Inc. (NASDAQ: MAR) in the launch of a new endeavor in the midscale hospitality space in Japan.
The new partnership follows KKR’s acquisition of Unizo Hotel Company Limited and a portfolio of 14 hotels in Japan from Unizo Holdings. The 14 hotels will be converted to Four Points Express by Sheraton, which will mark Marriott’s entry into the affordable midscale segment in Japan and the brand’s debut in the Asia Pacific region. following its global launch in this space in 2023.
The portfolio’s hotels are located in major tourist destinations in 10 cities – Hakodate, Morioka, Utsunomiya, Yokohama, Kanazawa, Nagoya, Osaka, Kyoto, Kobe and Hakata – and the properties are expected to open in the second half of 2024, adding more than 3,600 new rooms to KKR’s and Marriott’s respective hotel portfolios in Japan.
“There’s a growing consumer demand for reliable-yet-affordable accommodation in the region,” said Rajeev Menon, President, Marriott International, Asia Pacific (excluding China). “Our goal is to be everywhere our guests want us to be, with the right property in the right location, at the right price point. This collaboration with KKR will expand our ability to do exactly that – starting in Japan, with opportunity to grow our midscale presence in the region. Our new midscale brand will offer hotel owners an affordable conversion opportunity with an efficient operational design, access to Marriott International’s expansive distribution systems and the backing of our powerful award-winning Marriott Bonvoy travel program.”
Kensuke Kudo, managing director of real estate at KKR, added, “International and domestic tourism in Japan has rebounded strongly since the pandemic and continues to pick up pace. As demand for midscale hotels grows rapidly, we see a tremendous opportunity to offer high-quality and comfortable accommodation at great value. We are delighted to be strategic partners with Marriott International, one of the world’s pre-eminent hotel companies, to launch the Four Points Express by Sheraton brand in Japan. By combining KKR’s real estate investment and operational expertise and Marriott’s deep hospitality experience, we look to deliver outstanding-yet-affordable lodging experiences to international and domestic travelers across Japan.”