Travelodge Hotels Asia Acquire Two Hotels To Expand Their Footprint in Japan
Main Photo: The UNIZO INN Kyoto Kawaramachi Shijo, as is…one of the two hotels acquired by Travelodge Hotels Asia
Date: October 2022
Name: The UNIZO INN Kyoto Kawaramachi Shijo and One Five Midosuji Hotel in Osaka, both to become Travelodge hotels…. Travelodge Kyoto Shijo Kawaramachi in Q1 2023 and Travelodge Honmachi Osaka in Q4 2022
Locations: Shijo-Kawaramachi Street, Kyoto and Osaka, Japan
Number of Keys: 242 and 136
Sellers: Unizo Inns on Kyoto….Ichigo Estate on Osaka
Buyer: Travelodge Hotels Asia – TLA
Travelodge Hotels Asia (TLA) announced that it has successfully led and completed the acquisition of the 242-room Unizo Inn Kyoto Kawaramachi hotel.
The purchase is TLA’s second separate account hotel investment in Japan in 2022. Earlier in February 2022, TLA announced its first acquisition in Japan, advising on the purchase of the former One Five Midosuji Hotel in Osaka. The hotel will be relaunched as Travelodge Honmachi Osaka in early Q4 after an extensive refurbishment program. Along with its 2 hotel openings in Thailand – Travelodge Phuket Town and Travelodge Nimman Chiang Mai – to date, TLA has added 4 new hotels to its portfolio since the start of 2022, increasing it’s pan-Asian footprint to 17 hotels in 13 cities and 7 countries, and reverting to its pre-Covid growth trajectory of opening a new hotel every quarter on average.
Travelodge Kyoto Shijo Kawaramachi will be the new name for the Kyoto hotel. It has consistently been, one of the most popular destinations in Japan for both domestic and international travellers. The city is renowned worldwide for its cultural heritage and history, with a collection of beautiful shrines, temples, and castles. There are 17 World Heritage sites in Kyoto, such as the Kiyomizu-dera Temple, and the Golden and Silver Pavilion temples. Its temperate weather makes Kyoto an all-seasons destination, with various events and festivals all-year round, including cherry blossom viewing and the Gion Matsuri Festival. Kyoto also enjoys excellent transport connectivity via air, railway, and ferry, which provides convenience for day trips to nearby cities such as Osaka, Kobe, and Nagoya.
The 242-key hotel is strategically located right along the Shijo-Kawaramachi Street, Kyoto’s busiest retail high street. Situated in the heart of Downtown Kyoto, the Shijo Kawaramachi district is vibrant during the day and at night, with an abundance of shopping, dining, and nightlife entertainment options at its doorstep. Shijo Street features renowned brands such as Apple, Louis Vuitton, and Gucci, while Nishiki Night Market, Kyoto’s biggest food market, is a stone’s throw away from the future Travelodge Kyoto Shijo Kawaramachi. The hotel is also within walking distance to Gion, which houses some of the best teahouses, restaurants, and bars which Kyoto city has to offer.
The hotel will undergo a 6-month renovation program to uplift the design, look and feel of its rooms, facilities, and communal spaces, before reopening as Travelodge Kyoto Shijo Kawaramachi in Q1 2023.
TLA also announced its appointment of several seasoned hotel professionals to its local leadership team in Japan. The multi-functional leadership team includes Yasuko Sugiyama (Director of Commercial – Revenue, Distribution, Sales & Marketing), Carine Sanga (Director of Design, Technical Services and Project Management) and Junya Ono (General Manager). The functional leaders of Travelodge Japan will work closely with the TLA leadership team across the region to support the Group’s aggressive growth plans in Japan. Having built a healthy pipeline of acquisition targets across Japan, TLA is actively pursuing opportunities to add to its portfolio in Japan.
Marcus Aw, Managing Director of TLA, said “We are very excited about the launch of our second hotel in Japan, and it is a bonus to be able to do so within 6 months of announcing our entry into the market with Travelodge Honmachi Osaka. Of the many beautiful cities in Japan where we hope to see a Travelodge in the near future, Kyoto complements Osaka perfectly as they are major draws for local and international travellers, who tend to visit both cities together given their proximity to each other in the Kansai region. Furthermore, to have a Travelodge in the Shijo Kawaramachi district of Kyoto bodes well for our brand promise of always being in the best locations to provide our guests with comfort, convenience and connectivity.”
“I am also very grateful for the hard work, and delighted with the achievements, of our Travelodge Japan team. They have successfully led two hotel acquisitions and takeovers in Japan within the past 6 months, and given their individual experiences and track record in Japan’s hotel industry, I am confident that they have set a strong foundation that will fuel the long term growth of our business. We are clearly in acquisition mode, so the support of our partners such as our investors, lenders, brokers, legal advisors and technical consultants, has been absolutely invaluable”. I look forward to working with them again very soon”.
Price: Undisclosed
THPT Comment: Travelodge UK started life under the THF (Trusthouse Forte) banner when (Lord) Charles Forte bought the rights for the name from the then US owner in 1973, and it has changed hands a few times in the UK…currently owned by a consortium made up of GoldenTree Asset Management, Avenue Capital Group and Goldman Sachs, who own the brand, and lease the properties from a variety of owners. Travelodge Corporation of the USA started the first hotel in San Diego, California in 1940….is owned by Wyndham Hotels, with Superior Lodging owning the business alongside Thriftlodge in Canada….with TLA being the owner in Australasia and Asia through Singpore-listed ICP (we think!)
First Seen: eHotelier
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