Hoshino Says REIT Tokyo Debut Is Catalyst for Overseas Growth
Hoshino Resort Co., a 109-year-old Japanese luxury hotel operator, wants to be as well known as Toyota Motor Corp. internationally. President Yoshiharu Hoshino says today’s real estate investment trust debut is a start.
“When I walk on the streets of New York or London, I see Toyota, Nissan and Honda cars driving around, but I don’t spot any Japanese hotels,” Hoshino, 53, said in an interview in Tokyo. “It’s my dream to become one of the choices in the international tourism business.”
Hoshino Resorts REIT Inc. (3287) will invest in Hoshino’s three hotel brands, which are currently located only in Japan, after raising 10.2 billion yen ($103 million) in an initial public offering. The REIT will buy six hotels for 15 billion yen from the company, Hoshino said.
The REIT started trading at 570,000 yen, 12 percent higher than the 510,000 yen IPO price. It was at 577,000 yen as of 9:24 a.m. local time on the Tokyo Stock Exchange.
Hoshino said that shifting ownership of the hotels to the REIT will allow him to focus on managing the properties as the company expands, including opening hotels overseas. Hoshino Resort will use the IPO proceeds to upgrade its computer system, strengthen its brand and hiring, the president said.
To contact the editor responsible for this story: Andreea Papuc at firstname.lastname@example.org