The Japan-based hotel group Prince Hotels has just acquired the Australian StayWell for ¥4.3 billion (ca. €33 million). It now targets international expansion.
The latter operates 30 properties (including 12 hotels currently under development) mainly in Australia and India. The Japanese hotelier itself has a portfolio of 49 properties located primarily in Japan but also in other Pacific regions such as China, Taiwan and Hawaii.
Prince Hotels' portfolio is evolving on a relatively stable trend: from 2005 to 2017, its hotel supply suffered neither major cuts, nor benefits from large acquisitions.
Prince Hotels hotel supply development, 2005 to 2018
Will Prince Hotels' latest purchase be in line with its 'boom-and-bust' development? Or is it an indication that the market is now leaving room for growth to Japanese hoteliers? Shigeyoshi Akasaka, President & Representative Director of Prince Hotels, Inc., answers: "Prince Hotels is enjoying good performance with the recent growth of tourism within Japan. During these favorable conditions we are looking toward the year 2020, Tokyo Olympic and Paralympic Games will be held, and beyond and focusing on international expansion."
Concerning the purchase of StayWell Hospitality Group, he adds: "In order to expand overseas, we believe that it is important to not only expand strategic bases but also to cultivate internationally minded personnel."
"Business with SWHG will bring us significant beneficial opportunities and international elements. I believe that this is the great step for Prince Hotels to make rapid progress in the global market," he concludes. It is worth noting that the group set up its target to deploy 100 hotels within 10 years.
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