Confidential. For Professional Investors Only as defined in the Securities and Futures Ordinance (Cap 571, Laws of Hong Kong) and its subsidiary legislation
Odyssey Japan Boutique Hospitality Investment Strategy
Why Invest in the Japanese Hospitality Real Estate strategy?
Market Data and Structural Demand Drivers
The right place at the right time
The Japanese hospitality market has compelling value drivers
Strong demand from Japanese domestic travellers
Approx. 400 Million per year since 2010
Domestic travellers = 80% of all hotel stays
Hospitality consistently out performs office & residential
Boutique hospitality offer higher returns
Strong growth in occupancy rates & forecast to remain robust
Occupancy rates rising since 2012
Exponential growth in foreign travellers to Japan
A record 30 Million visits in 2018
Government target of 40MM inbound visits by 2020
Structural shortage of hotel rooms across Japan
Hospitality sector underinvested after the GFC (2009)
Forecasted room shortage for 2020 Olympics
Tourism boom
Major growth engine for hospitality assets
Since Prime Minister Abe came into office in December 2012, inbound tourist arrivals have risen almost fourfold (4x), from a 2012 monthly average of 697,000 to 2.7 million in January 2019 and a record 31.19 million foreign visitors to Japan in 2018
Structural demand drivers of Tourism Growth:
- YEN depreciation.
- Easing of VISA restrictions for Mainland Chinese, and ASEAN based tourists.
- Deregulation of Japanese air industry (more flights, lower landing fees, more slots for LCC carriers).
- Government policy to support tourism sector growth.
Excellent Fundamentals
Strong demand & under supply of available rooms
Most of the new supply coming on-line is in the limited service, business hotel category and will not have significant impact on our niche focus on boutique luxury assets.
The Japanese hospitality market is very binary with the two primary offerings being small and cheap business hotels or a small number of 5-star hotels which are expensive for families and multi-night stays.
And despite new supply, a room shortage is expected for the 2020 Olympics.
The Japan Strategy Investment Team
THE JAPAN INVESTMENT TEAM
Odyssey has assembled a seasoned team of professionals in Hong Kong and Japan
Experience
The Odyssey Japan Boutique Hospitality Fund team has over 100 years of combined execution experience with alternative assets, funds management and hospitality real estate.
Track-Record
Our local asset managers also have compelling track records. Consistently producing +15% IRR, +8% Net Operating Income (NOI) Yields and 2x money returns.
Industry Leaders
The Japanese Commercial Real Estate (CRE) market can be difficult to access and manoeuvre – we have solid, long-lasting partnerships with the top 1% of Japanese CRE professionals.
Expertise
Our ecosystem of partners are all specialists in the real estate hospitality space – everyone from our lawyers to our lenders are experts in Japanese CRE.
STRATEGIC PARTNERS
Proven execution capability in Japanese real estate & hospitality asset management. All our strategic partners work with us on a mandated basis and exclusive to specific projects.
FUND ECOSYSTEM
Odyssey has built an institutional grade structure with clearly defined responsibilities for execution
Advisory Board
Deep experience in Japanese finance, real estate & hospitality
Fund team
Deep experience in Japanese finance, real estate & hospitality
Current and Future Acquisitions
Investment strategy
How to invest
HOW TO INVEST IN THE JAPAN BOUTIQUE HOSPITALITY STRATEGY
2 ways to invest in the strategy
Contact
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Confidential. For Professional Investors Only as defined in the Securities and Futures Ordinance (Cap 571, Laws of Hong Kong) and its subsidiary legislation