Okinawa, Dec 18 – Blackstone Inc. has acquired the Ritz-Carlton Okinawa in a deal estimated at ¥20 billion (RM579.83 million), reflecting the rising demand for luxury hospitality assets as Japan experiences a tourism boom. The US-based asset management giant is also purchasing the Kanehide Kise Beach Palace as part of the transaction, according to sources familiar with the matter.
The 97-room Ritz-Carlton, situated within a country club, was sold by Kanehide Holdings Co., a private company with varied business interests in Okinawa. In addition to the acquisition, funds will be invested in renovating the properties, sources said. While Blackstone has not commented on the deal, Kanehide Holdings confirmed the sale but declined to provide further details.
Japan’s tourism sector has seen a sharp recovery this year, driven by a weaker yen that has attracted more international visitors. In the first 10 months of 2024, over 30 million travelers arrived in the country, surpassing previous annual records. Okinawa remains a popular destination, boasting tropical beaches and warm weather that draw tourists from across Asia and beyond. Between April and October 2024, the island recorded 886,700 visitors—a 12.5% increase compared to the same period last year, according to local government data.
The surge in tourism has fueled significant interest in Japanese hospitality assets. Hotel transactions in Japan reached ¥767 billion in the first half of 2024, marking a 46% year-on-year increase and the highest level in a decade, according to MSCI Real Assets.
For Blackstone, the Ritz-Carlton Okinawa purchase adds to its record-breaking year in Japan, with the firm completing US$7.7 billion (RM34.33 billion) in deals across its real estate and private equity portfolios. Just last week, the company acquired a mixed-use property in central Tokyo from Seibu Holdings Inc. for ¥400 billion.
The acquisition underscores Blackstone’s confidence in Japan’s thriving tourism and real estate markets, as the firm continues to expand its footprint in Asia’s booming hospitality sector.
