We construct a diversified, risk-adjusted portfolio through various lease and operation agreements, including fixed rent leases, variable rent structures, franchise operations, and management contracts. Our core strategies include a Fixed Stable Income Strategy for stable returns, a Growth Seeker Strategy to capture growth opportunities, and a Repositioning Strategy that enhances value through renovations and rebranding.
These approaches enable us to effectively manage risk while maximizing returns, ensuring a robust and sustainable investment approach in Japan’s dynamic hospitality sector.
We consider various hotel types, with a particular focus on economy, mid-scale, and lifestyle hotels, which align well with our growth seeker and repositioning strategies. Additionally, small luxury and apartment hotels are emerging themes that we are proactively exploring.
Hotel Captital Partners believes in legacy.
It’s not just about creating value, we are committed to creating exceptional places.
By applying this belief through improvement of the assets we own and manage, we find that achieving superior returns naturally follows when our goal is to create a lasting positive impact.
We assess the initial net operating income yield relative to the purchase price and any potential price discounts.
We negotiate lease or management contract terms to secure more favourable conditions.
We evaluate the growth potential of the hospitality market in the region.
We consider opportunities for renovation, repositioning, and other value-add asset management initiatives.
We analyze the spread between the stabilized net operating income yield on the purchase price and the expected exit market capitalization rate.
We evaluate the terms of financing to ensure they are favorable and contribute to the overall return.