Japan Hotel REIT Investment Corporation
Notice Regarding Renovation Work of Hilton Tokyo Odaiba
Full renovation work of Hilton Tokyo Odaiba is scheduled from February 2026 to December 2027. Renovation cost is 10.8 billion yen, funded through new borrowing, aiming for a significant increase in ADR.
Key Figures
- Total Renovation Cost: 10.8 billion yen (CAPEX I: 5.7 billion yen, CAPEX III: 5.1 billion yen)
- Renovation Period: February 2026 – December 2027
- Expected Net Income Increase: +480 million yen
AI要約
Overview of Renovation Work
Japan Hotel REIT Investment Corporation has decided to conduct full renovation work for its asset, Hilton Tokyo Odaiba, from February 2026 to December 2027. The total renovation cost is 10.8 billion yen (CAPEX I: 5.7 billion yen, CAPEX III: 5.1 billion yen), mostly to be financed through new borrowing. The renovation aims to transform the facility into a high-quality property comparable to luxury hotels in the city center, targeting a significant increase in ADR (average daily rate).
Effects of Renovation and Fundraising
Post-renovation NOI is expected to be approximately 4.4 billion yen (NOI yield of 6.1%), a substantial increase from about 2.9 billion yen (NOI yield of 4.7%) before renovation. The anticipated Net Income increase is estimated at around 480 million yen. Financing will mainly be through new borrowing, with about 6.0 billion yen of the 6.4 billion yen renovation cost in the fiscal year ending December 2026 expected to be procured by loans. The estimated post-borrowing market LTV is approximately 37%.
