Japan’s Hotel Okura Co., Ltd. has come together with Trinity Investments, LLC, a Hawaii-based private real estate firm with much experience in the hospitality space, to create an exclusive joint venture called Nikko Style, an upscale select hotel brand that will soon be introduced throughout Japan.
Announcing the partnership and the new brand in a press release, stakeholders involved with the deal said that Nikko Style seeks to target travelers who want new, creative experiences, thereby filling a void in an underserved portion of the hospitality market in Japan: select service hotels. This move comes as Japan has been enjoying an increase in the number of inbound tourists who visit the country, an increase that the country’s government is hoping will double by the year 2020, when its biggest city, Tokyo, is slated to host the Olympic Games.
In describing the new brand, the company said Nikko Style will offer its guests a comfortable and inviting atmosphere that simultaneously encourages work, relaxation and socializing. Trinity is also seeking to raise up to $300 million of equity to initially fund the new Nikko Style chain, with the first hotel that will be under the branding slated to open in the year 2020. The ultimate plan is for between 20 and 30 Nikko Style Hotels to be opened throughout the country in a host of different cities, including Tokyo, Osaka and Fukuoka. With a firm presence in Japan, the brand may then look to expand to other parts of Asia, and to North American and Europe as well.
Sean Hehir, President and CEO of Trinity, said in a press release, “Japan’s hotel inventory is arguably the most underserved amongst developed countries worldwide, with little segmentation by major brand companies into the upscale select service space where branding and value-driven price points will be highly attractive to the country’s new visitor demographic. This collaboration with our long-standing partner Hotel Okura on Nikko Style will serve to fill this void, allowing for the rapid penetration of a new but familiar brand throughout Japan and then, utilizing our respective companies’ worldwide networks, into selective gateway cities in other Asian countries, North America and Europe.”
Such language is pretty much standard in announcements about hospitality plans and investments, but if two brands could accomplish such lofty goals it would be Hotel Okura, which was first founded back in 1958 before opening its flagship Hotel Okura Tokyo in 1962, and Trinity Investments, a private real estate investment firm that has a 20-year history of generating value-added returns over a diversified array of geographic locations and asset types.
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