According to reports from media outlets citing informed sources, as Japan's tourism industry continues to thrive, Blackstone Group (BX.US), the world’s largest alternative Asset Management Institution, has purchased a Ritz-Carlton resort located in Okinawa, Japan, and is in the process of acquiring another hotel Asset on the island, with an expected total value of approximately 20 billion yen (about $0.13 billion). Japan's tourism industry has entered a prosperous cycle in recent years, especially as the wave of yen depreciation draws more American tourists to vacation in Japan, and currently, during the Christmas and New Year holiday peak period, it is also attracting more Chinese and South Korean tourists.

According to informed sources, this American alternative Asset Management giant has acquired the Ritz-Carlton resort with 97 guest rooms from Kanehide Holdings Co., located within a country club. Kanehide Holdings Co. is a privately held company involved in multiple industries in the southernmost prefecture of Japan. The informed sources stated that this transaction will also include Kanehide Kise Beach Palace and funds for renovations.

Media reports indicate that, due to the private nature of this matter, sources requested anonymity. Blackstone Group declined to comment. Media reporters were unable to immediately contact representatives of Kanehide for a comment.

This transaction will be comprehensively completed during the prosperous period of Japan's tourism industry, greatly driven by the weak yen, highlighting that the alternative Asset Management giant Blackstone is also Bullish on the ongoing heat of Japan's tourism industry amid the influx of global tourists.

Customs Statistics show that in the first 10 months of this year, over 30 million international tourists visited Japan, breaking the annual record for visitors. The explosive growth of the tourism industry has attracted investment Institutions to the flourishing business operations and investment interests in Japan's hotel sector, with hotels located in Japan's popular vacation areas being among the most sought-after Real Estate Assets in Asia this year.

Unlike the cold winters in most regions of Japan, Okinawa's subtropical climate and numerous beaches make it a popular winter vacation destination for both domestic and Asian travelers. According to local government statistics, from April to October this year, approximately 0.8867 million tourists visited Okinawa, representing a significant increase of 12.5% compared to the already strong figures from the same period last year.

According to statistics from MSCI Real Assets, the overall transaction volume in Japan's hotel industry reached 767 billion yen in the first six months of 2024, a year-on-year increase of 46%, marking the highest level in at least a decade.

Blackstone Group has also welcomed the most active year for investment in Japan's Real Estate and private equity markets, achieving transactions worth approximately 7.7 billion dollars in the country's real estate and private equity business. Last week, this alternative asset management giant announced that it purchased a mixed-use complex in downtown Tokyo from Seibu Holdings Inc. for about 400 billion yen, setting the record for the largest foreign real estate merger and acquisition transaction ever conducted in Japan. The complex includes a 36-story office building, rentable apartments, a hotel, and various retail and dining facilities. This transaction is Blackstone's largest deal in Japan to date.

At this time last year, Japan's tourism industry was recovering rapidly, and Blackstone had begun investing heavily in Japanese hotel assets, successfully acquiring the boutique hotel brand Moxy Kyoto Nijo from Goldman Sachs last December, making Japanese hotels one of the most popular real estate investment projects in Asia-Pacific since 2023. Some investment Institutions favoring fixed assets are betting that due to the continued depreciation of the yen, Japan's tourism industry will continue to recover strongly, while they are also attracted by the strong ability of Japanese hotel operators to significantly adjust room rates in an inflationary environment.

Blackstone's real estate business management team in Japan recently stated that considering the enormous commercial investment potential brought by Japan's booming tourism industry this year, hotel assets are the "preferred symbol" in Blackstone's acquisition plans in Japan.