Services

VALUATION & PRICING

Indicative valuation

A written view of what the asset would command today, provided at no cost to owners.

We give a range rather than a number. With a hotel, the operating assumptions move the price more than any other input, so the work is to show which assumptions produce which value.

• ApproachIncome capitalisation (DCF and direct), comparable transactions, and replacement cost.
• DeliverablePrice range, the factors that move it, the likely buyer universe, available structures and an indicative timetable.
• TimingTypically one to two weeks, depending on the information available.

INVESTMENT SALES

Hotel brokerage

As a licensed Japanese real estate broker we act for sellers or buyers.

Commission is set within the ceiling prescribed by the Real Estate Brokerage Act and stated at the time the mandate is signed.

• Sell-sideApproach design, materials, negotiation, contract and closing, run end to end.
• Buy-sideSourcing against criteria, negotiation, due diligence coordination and closing.
• FormsFreehold, trust beneficiary interest, SPC/TK interests and share transfer.

CAPITAL MARKETS

Buyer sourcing & capital matching

We do not confine the buyer pool to Japan. Japanese corporates, private funds and J-REITs, alongside investors across Asia and beyond.

• Approach designWhich pool the asset belongs to, given scale, location and structure. Exclusions honoured.
• Staged disclosureNo-name approach, NDA, limited disclosure, inspection — in that order.
• Built for offshore reviewEnglish materials, plus an explanation of Japanese practice, licensing and tax considerations.

MARKET & FEASIBILITY RESEARCH

Market & feasibility research

Demand structure, competitive supply and rate positioning, forward pipeline and seasonality, assembled into a defensible set of ADR, occupancy and P&L assumptions.

Used both to test a standing asset and to assess the feasibility of a development scheme.

• DemandCatchment demand structure, inbound versus domestic, business versus leisure, seasonality and day-of-week pattern.
• SupplyCompetitor key counts, rate positioning and grade, forward pipeline and rebranding activity.
• OutputAchievable ADR, occupancy and RevPAR; departmental P&L; GOP and NOI ranges.

OPERATOR SELECTION

Operator selection & agreements

Who runs the hotel, and on what terms, is an input to the price rather than a detail to settle afterwards.

We cover the comparison of lease, management contract, franchise and self-operation, and introduce operators suited to the asset.

• Structure comparisonDistribution of risk and return, rent and fee levels, term and termination.
• IntroductionsOperators matched to asset type, scale and location, with terms discussions set up.
• Existing agreementsTrading with operations in place versus delivering vacant, and the effect on price, buyer pool and timetable.

REPOSITIONING & CONVERSION

Repositioning & conversion

Sell as-is, or sell with a change of format, brand or use priced in. For some assets, attaching a scheme changes both the buyer pool and the number.

• Format & gradeConversion to select-service, rebranding, and changes to room mix, tested for their effect on earnings.
• Change of useOffice or residential into hotel, and hotel into other uses, tested against building, fire and licensing requirements.
• DevelopmentPositioning a site for hotel use, or selling with a development scheme attached.

TRANSACTION ADVISORY

Transaction advisory & due diligence

Due diligence coordination, materials, and liaison with the professional advisers. For a first acquisition in Japan, this is where most of the friction sits.

• DD coordinationPhysical, legal, financial and operational workstreams, with appointment and scheduling of advisers.
• MaterialsDisclosure packs, centralised Q&A, and data room operation.
• Adviser liaisonJudicial scriveners, tax accountants, appraisers and counsel.