Nomura has completed the acquisition of the Centara Grand Hotel Osaka for JPY 38.5 billion ($241 million) through a managed fund vehicle, purchasing the 515-key property from a joint venture led by Thailand's Central Plaza Hotel in one of the year's most significant hotel transactions in Japan.
The transaction saw the buyer take control of the hotel's leasehold rights, building and fixtures from the joint venture in which SET-listed Centara Hotels and Resorts holds a 53 percent stake, alongside Japanese partners Taisei Corporation and Kanden Realty and Development.
Thai Operator Retains Management
Despite the divestment, Centara will continue to operate the Osaka hotel under a lease of approximately 47 years, preserving its recurring operating income and maintaining the property's brand positioning in Japan's competitive hospitality market.
"We view the sale of the hotel rights in Japan positively, as it will generate an extraordinary profit before taxes and other expenses of THB 1.76 billion ($53.4 million), equivalent to an EPS of 1.30 baht per share," said analyst Saranrat Panthachotirat at DAOL Securities.
The acquisition values the property at JPY 74.8 million ($468,000) per key, reflecting the premium commanded by well-located, recently completed hotel assets in Japan's major metropolitan areas.
Significant Premium to Book Value
Notably, the agreed price represents a sharp uplift from the asset's book value of JPY 22.57 billion at the end of 2025, pointing to tightening yields for stabilised hotel assets in Japan's key tourism markets. The premium underscores investor confidence in the long-term income-generating potential of quality hospitality assets in Osaka.
Located in Osaka's central Namba district, the Centara Grand Hotel Osaka is a flagship overseas development for the Thai operator and a cornerstone of its Japan expansion strategy. The 33-storey property was completed in 2023, following a partnership established in 2019, and has benefited significantly from Osaka's tourism recovery.
Nomura Expands Into Hotels
For Nomura Real Asset, which manages real estate funds exceeding JPY 140 billion, the deal marks a strategic expansion of its investment management activity to include hotel assets for the first time.
"In light of market conditions and evolving investor needs, the company has been stepping up its efforts to identify and execute new investment opportunities," the firm said in a statement.
The acquisition was executed via a managed fund established jointly by Nomura Real Asset, Nomura Real Estate and Nomura Holdings, bringing together the investment bank's various real estate capabilities under a single transaction structure.
Japan's Booming Hotel Market
The deal comes amid resilient hotel investment activity across Japan, driven by surging inbound tourism and improving operational fundamentals. Japan Hotel REIT recently completed one of the largest hotel transactions ever by a J-REIT, acquiring the 712-key Hyatt Regency Tokyo for JPY 126 billion in March.
Japan's hotel investment volume reached JPY 820 billion in 2025, and while that represented a 33 percent decline from the prior year's record levels, it remained historically elevated. Inbound arrivals hit 42.7 million in 2025, putting Japan on track to reach the government's ambitious target of 60 million visitors by 2030.
Average daily rates and revenue per available room reached record highs last year as occupancy levels continued to recover toward pre-pandemic norms, according to Savills, which expects continued growth in 2026 supported by tourism demand, limited new supply and rising accommodation spending.
The Osaka market, in particular, stands to benefit from the legacy effects of Expo 2025, which drew millions of visitors and accelerated infrastructure upgrades across the city, positioning it as an increasingly attractive destination for both leisure and business travellers.
