Osaka Midosuji
The OneFive In the heart of the business district
The
Executive Summary CBRE is pleased to offer the sale of The OneFive Osaka Midousuji, a quality investment asset located in the key business district of Honmachi in Osaka. The location has high footfall and is a popular spot for business travelers as well as tourists with Honmachi and Sakai-suji Honmachi stations in close proximity. Address
3-2-16 Azuchi-machi, Osaka,Osaka-fu, Japan
Closest Stations
3 mins from “Honmachi Station” on the OsakaMetro Midosuji, Yotsubashi & Chuo Lines 5 mins from “Sakaisuji Honmachi Station” on the OsakaMetro Sakaisuji & Chuo Lines
Land Size
587.17m2 / 177.61 Tsubo
Zoning
Commercial Area
FAR
80% - 800%
Structure Size
RC / 14F
GFA
3,876.04m2 / 1,172.50 Tsubo
Completed Year
March 2007
Opening
May 2007 (Rebranded as TheOneFive in Sept 2020)
Rooms
136
Facilities
Parking
Hotel Operator
Hakata Hotels Co. Ltd
Other Tenants
R&B Holdings Co Ltd (Massage Salon on 2F)
The
Property Summary Facilities GFA per Type
Leasable Area Breakdown
% of Total
Hotel
3,832.01m2
98.9%
Retail
44.03m2
1.1%
Total
3,876.04m2
100.0%
Rooms Type
Size
No of Rooms
Semi-double
14m2
21
Double
17m2
93
Superior Twin
26m2
12
Deluxe Twin
28m2
10
Total
2,467m2
136
Average Room Size
18.1m2
-
Macro
Location Map UMEDA
KITA AREA
MIDOSU
OFFICE / CBD AREA
SHINSAIBASHI
MINAMI AREA
SHINSAI NAMBA
UJI
OSAKA GOVT BLDG
IBASHI SUJI SHOPPING ARCADE
Micro
Location Map MIDOSUJI ST
SUBWAY EXIT
ST REGIS HOTEL OSAKA
HOMMACHI STATION
MOXY OSAKA HONMACHI
SAKAISUJI
A
COURTYARD BY MARRIOT OSAKA SAKAISUJI HOMMACHI STATION
The
Investment Highlights
Central Location within Osaka Honmachi Station is one of the busiest stations on the Osaka Metro, with an average of 180,000 passengers per day. Connected by 4 train lines; Midosuji Line, Chuo Line, Sakaisuji Line and Yotsubashi Line.
HOMMACHI STATION
Surrounded by amenities and attractions, The OneFive is located in the heart of the business district and is easily accessible via public transport. Shinsaibashi 2 min Namba 4 min
Umeda 5 min
Shin Osaka (Shinkansen) 11 min Osaka Castle Park 7 min
Tennoji 12 min
Universal Studios Japan 23 min
Kansai Airport 55 min Itami Airport 50 min
Larger Than Average Room Size - Outperforming the mark
A survey of 64 hotels within the greater Honmachi area shows the averag The OneFive Osaka Honmachi has an average room size of 18sqm and it Honmachi Stock OneFiveHonmachi Osaka Midosuji AverageHotel Room Size inThe Greater Area
No of Rooms
平均 Avg
900 800 700 600 500 400 300 200 100 0
5
10
15
20
25
Honmachi Hotel Stock
30
35
40
The OneFive Osaka Midosuji
45
50
55
平均 Avg
900
22 of the 138 rooms are larger than 26 sqm
800 700 600 500 400 300 200 100 0
5
10
15
20
25
30
35
40
45
50
55
ket average
ge room size is 16sqm. t outperformed the Compset hotel average in 2019. ADR/OCC ADR/OCCPositioning Positioning ADR(円) 12,000 11,000
Hotel AndRooms Osaka Honmachi
10,000 9,000
Subject Hotel 2019 Actual Kuretake Inn Osaka Midosuji Honmachi
Hotel MyStays Midosuji Honmachi
8,000 Hotel WBF Honmachi 7,000 6,000
Chisun Inn Osaka Honmachi
70%
75%
Hotel MyStays Sakaisuji Honmachi 80%
85%
90%
95% OCC
Future
Upside Opportunities
Japan’s 2nd Largest City - Major Tourist and Business Hub W • International tourist arrivals have historically continued to increase despite a number of previous crisis like SARS and the GFC. • International tourist numbers are likely to return to 2019 levels by 2023 – 2024. • Osaka will remain one of the top destinations in Japan for international tourists. Furthermore, international and domestic room night demand is likely to be boosted by infrastructure investments made in relation to the 2025 Osaka World Expo and the possible arrival of integrated resorts. (million)
International Tourism - Number of Arrivals
2020: COVID-19 1,600
30%
1,400
2009: GFC 2003: SARS
1,200
25%
20%
1,000 800
15%
600
10%
400 5%
200
0% 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
0
Europe Americas Middle East Source: UNWTO, CBRE, February 2021
Asia and the Pacific Africa % of APAC (RHS)
Will Bounce Back International Tourist Arrivals - Future Scenarios
Global Estimate On The Return to 2019 Level of International Travel
Source: UNWTO Panel of Experts October Edition January 2021, Return to 2019 levels expected by 2023
Room Renovation to Enhance NOI
The subject hotel outperformed the market average in 2019 but CBRE belie tourists. 1. Renewal of Existing Rooms Upgrade the design and finish of rooms to maintain the hotels positioning above the market and increase the appeal for international tourists.
Hotel TheFlag Shinsaibashi
2. Increase ADR with a boost to D In 2019 the subject hotel ac By converting some of the 9 twins, the subject hotel may a higher % of leisure demand and in turn, the ADR.
eves more upside is achievable particularly after the return of international
DOR chieved a DOR of 1.4. 93 double rooms into y be able to capture d and boost the DOR
Hotel And Rooms Honmachi
Options at Vacant Possession 1. Operating Own Opportunity to owner operate the hotel with a new brand in the Japan hotel market or increase the portfolio of an existing brand.
2. Operator Ch Explore the possibility of a operator cha in future to d higher return
Note: Hakata Hotels Co.,Ltd is receptive to manage or lease back the cu
hange
an ange drive ns.
3. Fixed and Variable Rent Scenario Link the rent payable to a mix of fixed and variable rent benchmarked to hotel performance. This type of rent scenario aligns the investor with the operator, and allows both to share in future upside whilst managing downside risks.
urrent hotel subject to agreeing conditions with the successful buyer.
Contact Us Kiyoshi Tsuchiya Director, Head of Hotels Capital Markets Japan +81 90 3096 1477 Kiyoshi.Tsuchiya@cbre.co.jp Takashi Adachi Senior Consultant Capital Markets Japan – Investment Properties +81 80 9804 5405 Takashi.Adachi@cbre.co.jp Lachie Tranter Consultant Capital Markets Japan - Hotels +81 70 1799 9011 Lachie.Tranter@cbre.co.jp