KKR to Buy Hyatt Regency Tokyo from Odakyu Electric Railway

By Kosaku Narioka

Odakyu Electric Railway Co. said Thursday that it will sell a unit operating the Hyatt Regency Tokyo and the hotel property to companies run by KKR & Co.

The Japanese railway operator said it expected to record a gain of about 50.0 billion yen ($380.4 million) from the sale of the hotel property.

Odakyu said it expects to see a small impact on earnings from the sale of the hotel-operating unit. The unit booked a Y1.26 billion net loss and Y537 million in net liabilities for the fiscal year ended March 2022.

The railway operator said the business environment for running full-service hotels has changed drastically in recent years and that the sales to KKR will likely improve the hotel business's growth prospects.

Odakyu also said it will sell an adjacent office building to a Japanese company partially owned by Dai-ichi Life Insurance Co. and expects a gain of about Y35.5 billion from the sale.

The railway operator didn't disclose the sale prices for the hotel property, the hotel-operating unit or the office building.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

March 23, 2023 02:33 ET (06:33 GMT)

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