TOKYO - Blackstone (NYSE:BX) Inc. has acquired the Moxy Kyoto Nijo, a Marriott International (NASDAQ:MAR) hotel, for ¥8 billion ($54 million), tapping into the flourishing Japanese hospitality market fueled by a robust recovery in tourism. The deal, which was confirmed by a Blackstone representative today, underscores the investment firm's strategic focus on expanding within Japan's resurgent hotel sector.
The Moxy Kyoto Nijo commenced operations in July 2021 and is conveniently situated near the historic Nijo Castle, featuring 158 guest rooms. This acquisition comes at a time when Japan's tourism industry is witnessing a significant upswing, with foreign visitor numbers in October surpassing those seen before the pandemic. The increase in tourists has led to higher spending on accommodation, contributing to a surge in expenditure from July through September this year compared to the same period in 2019.
The investment by Blackstone is part of a larger trend of foreign capital flow into Japan's hotel market, which reached $2 billion in 2023. Investors are drawn to the sector due to favorable currency dynamics and flexible pricing strategies that offer resilience against inflationary pressures.
While Blackstone has acknowledged the transaction, Goldman Sachs (NYSE:GS), which was involved in the sale, has not provided any comments. The strategic location of Moxy Kyoto Nijo and its recent opening make it an attractive asset within Blackstone's portfolio, reflecting confidence in Japan's continued hospitality sector growth and its appeal to international investors.
InvestingPro Insights
As Blackstone Inc. delves deeper into Japan's hospitality sector with the acquisition of the Moxy Kyoto Nijo, the company's financial health and market performance come under the spotlight. According to InvestingPro data, Blackstone boasts a robust market capitalization of 134.63 billion USD, signifying its substantial presence in the investment landscape. Despite a declining trend in earnings per share, Blackstone's net income is expected to grow this year, showcasing potential resilience and future profitability.
InvestingPro Tips highlight that Blackstone is trading at a high earnings multiple, with a P/E ratio of 48.3, which suggests investor confidence in the company's future earnings capacity. The firm's commitment to shareholder returns is evident, having maintained dividend payments for 17 consecutive years, with a current dividend yield of 2.77%. These insights are particularly relevant given Blackstone's strategic moves within the lucrative Japanese market and its broader implications for investor interest.
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