Tuesday, December 28, 2010

Japan Leisure Hotels - Main Investor Exit - Analyst Comment

Interesting comments on JLH and its valuation from its analyst Hardman and Co.


It is very interesting that Hardman believes that Japan Leisure Hotel's hotels should be valued in line with international hotel chain valuations; when it is common knowledge in Japan that Leisure Hotels or Love Hotels trade at much bigger caprates compared to their traditional hotel cousins in Japan

In the current market climate in Japan; combined with lack of financing, JLH's poor performance (most recently posting a loss in H1 2010) and also the upcoming regulatory change in the LH industry http://japanrealestatecommentary.blogspot.com/2010/05/japan-leisure-hotels-law-to-change.html
it is difficult to see any buyer emerging for the Bonita hotel chain

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