KKR and Marriott International to Launch Midscale Hospitality Segment in Japan with Four Points Express by Sheraton
May 07 2024 - 2:00AM
Business Wire
Conversion of 14 hotels marks Marriott
International’s debut of affordable midscale segment in Asia
Pacific
KKR, a leading global investment firm, and Marriott
International, Inc. (Nasdaq: MAR) today announced the launch of
each company’s foray into the midscale hospitality space in Japan,
which follows KKR’s completion of the acquisition of Unizo Hotel
Company, Limited and a portfolio of 14 hotels in Japan from Unizo
Holdings. The 14 hotels will be converted to Four Points Express by
Sheraton. This marks Marriott’s entry into the affordable midscale
segment in Japan and the brand’s debut in Asia Pacific following
its global launch in this space in 2023.
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The portfolio of 14 hotels is located in major tourist
destinations in 10 cities across Japan, including Hakodate,
Morioka, Utsunomiya, Yokohama, Kanazawa, Nagoya, Osaka, Kyoto,
Kobe, and Hakata. The properties are expected to open in the second
half of 2024, adding more than 3,600 new rooms to KKR’s and
Marriott’s respective hotel portfolios in Japan.
Four Points Express by Sheraton will offer value-conscious
consumers a seamless hotel experience in convenient locations
throughout Japan, with principles of reliability, simplicity and
value in both the design and guest experience. The brand has been
tailored to meet guests’ needs, and the brand standards contemplate
an efficient cost model that is intended to provide an effective
pricing strategy for franchisees and help drive meaningful growth
for Marriott.
Rajeev Menon, President, Marriott International, Asia Pacific
excluding China, said, "There's a growing consumer demand for
reliable-yet-affordable accommodation in the region. Our goal is to
be everywhere our guests want us to be, with the right property in
the right location, at the right price point. This collaboration
with KKR will expand our ability to do exactly that – starting in
Japan, with opportunity to grow our midscale presence in the
region. Our new midscale brand will offer hotel owners an
affordable conversion opportunity with an efficient operational
design, access to Marriott International’s expansive distribution
systems and the backing of our powerful award-winning Marriott
Bonvoy travel program.”
Kensuke Kudo, Managing Director, Real Estate, at KKR,
said, “International and domestic tourism in Japan has rebounded
strongly since the pandemic and continues to pick up pace. As
demand for midscale hotels grows rapidly, we see a tremendous
opportunity to offer high-quality and comfortable accommodation at
great value. We are delighted to be strategic partners with
Marriott International, one of the world’s pre-eminent hotel
companies, to launch the Four Points Express by Sheraton brand in
Japan. By combining KKR’s real estate investment and operational
expertise and Marriott’s deep hospitality experience, we look to
deliver outstanding-yet-affordable lodging experiences to
international and domestic travelers across Japan.”
This new midscale brand is part of Marriott’s award-winning
Marriott Bonvoy® loyalty platform, which boasts over 200 million
global members. It will leverage Marriott's world class Global
Sales Organization, and strong digital platforms like Marriott.com
and the Marriott Bonvoy mobile app, to generate direct
bookings.
KKR is making this investment from its Asia Pacific real estate
strategy. This transaction marks KKR’s latest real estate
investment in Asia Pacific and builds on KKR’s momentum investing
in Japan’s real estate sector, including making investments in: an
iconic full-service hotel located in Shinjuku; KJR Management
(formerly Mitsubishi Corp.-UBS Realty Inc.), a leading Japanese
real estate manager that oversees two Japanese REITS; a portfolio
of multifamily properties in Tokyo; and office assets across
Japan.
Additional details of the transaction have not been
disclosed.
About KKR
KKR is a leading global investment firm that offers alternative
asset management as well as capital markets and insurance
solutions. KKR aims to generate attractive investment returns by
following a patient and disciplined investment approach, employing
world-class people, and supporting growth in its portfolio
companies and communities. KKR sponsors investment funds that
invest in private equity, credit and real assets and has strategic
partners that manage hedge funds. KKR’s insurance subsidiaries
offer retirement, life and reinsurance products under the
management of Global Atlantic Financial Group. References to KKR’s
investments may include the activities of its sponsored funds and
insurance subsidiaries. For additional information about KKR &
Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com.
For additional information about Global Atlantic Financial Group,
please visit Global Atlantic Financial Group’s website at
www.globalatlantic.com.
About Marriott International
Marriott International, Inc. (Nasdaq: MAR) is based in Bethesda,
Maryland, USA, and encompasses a portfolio of nearly 8,900
properties across more than 30 leading brands in 141 countries and
territories. Marriott operates and franchises hotels and licenses
vacation ownership resorts all around the world. The company offers
Marriott Bonvoy®, its highly awarded travel program. For more
information, please visit our website at www.marriott.com, and for
the latest company news, visit www.marriottnewscenter.com. In
addition, connect with us on Facebook and @MarriottIntl on X and
Instagram.
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Media
For KKR Asia Pacific Wei Jun Ong +65 6922 5813
weijun.ong@kkr.com
For Marriott International Ching Yee Wong +65 9386 3082
chingyee.wong@marriott.com
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