Axe Management Partners have purchased three hotels for Garner to expand hotel portfolio to Osaka and introduce new designs and hotel properties outside North America.
The hotels were purchased for USD $75 million from CapitaLand Ascott Trust and leveraged a new partnership with IHG Hotels & Resorts.
The business deal launches the expansion for Garner in Japan and Asia-Pacific and targets
the rapidly growing need for high-quality and well-priced accommodation in prime locations.
Sam Lau, founder and managing partner at Axe Management, spoke highly of the business deal's future.
"We foresee attractive opportunities to emerge in selected regions across Japan and Asia in the coming months," said Lau.
"Japan has had a strong momentum, and we expect this will continue in the foreseeable future. This investment underscores our commitment to Japan, where we plan to deploy more capital and make further acquisitions in the near future."
Following this transaction, Axe Management and IHG Hotels & Resorts will work closely to launch the new Garner hotel brand outside North America, including establishing design and branding concepts and refurbishment work.
The partners plan to provide enhanced guest experiences through targeted sales, marketing and operational strategies.
Each of the three hotels, opening in Q4 2024, will have a differentiated design and convenient amenities, offering guests a comfortable stay and a suitable option in the premium mid-scale segment.
"We are very excited about acquiring this exceptional hotel portfolio with immense value-add potential," expressed Gary Kwok, founder and CEO of Axe Management.
"With flexibility in repositioning strategies, we will further invest CapEx and utilise our development and operational capabilities to transform these assets, creating a product that goes beyond expectations, driving performance and unlocking their true potential."
The three hotels have over 500 rooms, all centrally located in the prime district of Honmachi Osaka. The location is convenient for both business and leisure visitors, both domestic and international.
Japanese inbound tourists in Q4 2023 surpassed pre-pandemic levels, demonstrating the strong industry momentum and high demand for dependable hotels.
