The buyer now identified
On 25 September, KKR announced the sale of its portfolio of 16 Four Points Flex by Sheraton hotels in Japan, without disclosing either the buyer’s identity or the transaction price. According to people familiar with the matter, the assets have been acquired by GIC Pte Ltd, Singapore’s sovereign wealth fund.
The deal is said to be worth around ¥125bn, or roughly US$800m, nearly €700m. Spokespeople for GIC and KKR declined to comment.
A midscale portfolio across eleven cities
Four Points Flex by Sheraton is a Marriott International brand positioned in the midscale segment. The portfolio is spread across eleven Japanese cities, including the major tourist destinations of Tokyo, Osaka, Kyoto and Fukuoka.
KKR assembled the portfolio in 2024 by acquiring hotels from Unizo Holdings. The group had entered court-supervised restructuring in April 2023 after it was unable to repay maturing bonds.
A market buoyed by a weak yen and record tourism
The weakness of the yen has made Japan more affordable for foreign travellers, directly benefiting the hotel sector. According to data from Japan’s Ministry of Land, Infrastructure, Transport and Tourism, the country passed the 40 million international visitor mark for the first time in 2025, with around 42.7 million arrivals.
Hotels are also regarded as less exposed to inflation than other real estate asset classes, as they can quickly adjust room rates in response to rising costs and stronger demand. This allows them to protect profitability during periods of rising living costs, such as the one Japan is currently experiencing.
A run of large-scale deals
GIC’s acquisition is part of a series of major real estate transactions in Japan in recent years. In 2023, a group of foreign investors acquired 27 resorts owned by Daiwa House Industry for around US$900m, nearly €780m.
In March 2026, Japan Hotel REIT Investment Corp acquired the Hyatt Regency Tokyo for ¥126bn, or around €700m. Operators are following the trend, as illustrated by IHG, which has just signed its first two Noted Collection hotels in Tokyo.
GIC, a long-term hotel investor
Analysis – For GIC, this acquisition extends a hotel investment strategy already well established in Europe. The fund is a shareholder in Hotel Investment Partners alongside Blackstone, which is preparing for a stock market listing. It is also the majority shareholder of the luxury resort group Sani/Ikos.
With this Japanese portfolio, GIC is taking a position in a different segment, urban midscale, in a market where international demand continues to grow. For KKR, the deal marks an exit roughly two years after acquiring the assets.
At a glance by The Hospitality Tribune
GIC acquires KKR’s Four Points Flex by Sheraton portfolio in Japan
Buyer: Singapore sovereign wealth fund GIC, according to people familiar with the matter
Price: around ¥125bn (c. US$800m / €700m); GIC and KKR declined to comment
Portfolio: 16 midscale hotels under Marriott’s Four Points Flex by Sheraton brand across 11 cities, including Tokyo, Osaka, Kyoto and Fukuoka
Seller: KKR, which assembled the portfolio in 2024 from Unizo Holdings
Market: foreign arrivals to Japan topped 40 million for the first time in 2025 (c. 42.7 million)
