CDL acquires 256-room Osaka hotel for $78.5 mil

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Tengah Plantation EC is a large-scale residential project by the Housing & Development Board (HDB). It consists of four 12-storey towers and a total of 861 residential units. The units will be available in a variety of sizes ranging from 2-bedroom to 5-bedroom apartments, with some of the larger units boasting views of Tengah Town and the surrounding area. Residents will have access to a range of amenities such as swimming pools, gym, clubhouse, and more. The development is within walking distance of MRT stations and bus stops, making it an ideal location for those seeking accessibility. With the launch of Tengah Plantation EC, the town is set to experience increased demand for property, as more buyers and investors seek out attractive properties with great potential.

CDL’s acquisition of the freehold Bespoke Hotel in Osaka’s Shinsaibashi commercial district for 8.5 billion yen ($78.5 million) marks the group’s third hotel acquisition in 2023. Located within walking distance to popular shopping districts, malls, and stations, the 256-room lifestyle hotel is well-positioned to capitalize on the recovery of tourism in the city.

Japan’s tourism industry has seen an impressive rebound post-pandemic, prompting the investment into this hotel as part of CDL’s plan to expand and diversify their global real estate portfolio. Kwek Leng Beng, CDL’s executive chairman, said, “We saw this as a great opportunity to expand our hotel portfolio.”

The group has other rental apartment assets in Yokohama and Osaka, in addition to the 329-room Millennium Mitsui Garden Hotel in Tokyo Ginza.

This hotel, specifically, is set to benefit from the increase in tourism to the area in the coming years. Osaka is home to Universal Studios Japan, the world’s third-most visited theme park in 2022 with 12.4 million visitors, and in 2025 is estimated to host the six-month long World Expo which is predicted to attract more than 30 million visitors. In addition, the US$10 billion ($13.5 billion) MGM Integrated Resort scheduled to open in 2030 in Osaka is predicted to draw 20 million visitors a year.

Given its strategic location and the influx of tourists, CDL’s latest acquisition is sure to prove a lucrative asset.