INVESTMENT
FORTRESS INVESTMENT full speed ahead in Japan
Despite reports in August that SoftBank Group Corp . might sell its Fortress Investment Group , which currently owns and / or operates about 225 hotels in global markets , the hospitality investor remains very active in the acquisition marketplace , particularly in Japan where its Fortress Japan Opportunity Fund IV with ¥ 150 billion ( US $ 1.1 billion ) in committed capital has already made three deals ( 32 hotels ) this year with another six under exclusivity .
Shunsuke Yamamoto , managing director of Fortress Investment Group in Asia , says the company will be selectively selling assets in some of the older vintage funds while continuing to look for new opportunities . “ Fortress has been the most active hospitality investor in Japan over the past decade ( currently owns / operators some 161 hotels and 23,704 rooms there ), and we are seeing the current market as a great buying opportunity ,” Yamamoto told HOTELS in August . “ In fact , I am heading to the airport now to embark on a three-city site tour .”
Among the bigger deals of recent vintage was
Fortress ’ acquisition of a 30-property Japan Post portfolio , while in Europe in December 2021 it secured a majority stake in Prem Group , Dublin , Ireland , which owns and manages some 38 hotels and serviced apartments across Ireland , Britain , Belgium and the Netherlands . The group also has a portfolio in North America with five hotels and about 2,300 rooms .
Fortress-controlled entities own , lease or manage approximately 59 hotels or serviced apartment assets in Europe and have stated that it plans to invest further in the serviced apartments business along with other sectors in Britain , Ireland and continental Europe . In late June , Prem acquired the Fountain Court hotel in Edinburgh , Scotland , with plans to convert it to a Premier Suites .
Trading in Europe has been above expectations throughout this year , according to Robert Miles with Fortress Investment in London . “ We are continuing to focus on add-on acquisitions with an active pipeline and completed our first add-on in July ,” he said .
At the start of the year , Fortress Investment Group
42 hotelsmag . com October 2022