SC Capital Partners Group, a real estate investment manager focused on Asia-Pacific, has acquired a 165-room hotel in Kagoshima, Japan, via its Japan Hospitality Fund I.

Kagoshima, the capital city of Kagoshima Prefecture, is renowned for its rich cultural heritage and vibrant tourism industry. Located in the southernmost part of Kyushu, the city is also well-connected by an extensive road and rail network, including the Shinkansen, making it easily accessible for both domestic and international travellers. The growing number of flights into Kagoshima Airport further enhances visitor arrivals.

SC Capital Partners plans to implement a comprehensive rebranding strategy, including refurbishment as well as operational and asset enhancements, to better capture the increasing demand from leisure travellers.

The hotel is being rebranded as an Oriental Express hotel, under Hotel Management Japan ( HMJ ), an affiliated entity of SC Capital Partners. HMJ will take on the hotel’s operations.

The 165-room hotel is being rebranded as an Oriental Express hotel. ( SC Capital Partners )

SC Capital Partners has built a strong track record in Japan’s hospitality sector since 2010, having invested over US$1 billion through its private funds strategies, encompassing 59 hotels and over 13,000 rooms. The firm’s diverse investment activities include hotel acquisitions and dispositions, the acquisition and merger of two hospitality J-Reits, and the acquisition of controlling stakes in Reit managers and a hotel operating company.

SC Capital Partners is also the majority owner of Japan Hotel Reit Advisors ( JHRA ), the asset manager of Japan Hotel REIT Investment Corporation. JHR is one of the largest hospitality Reits in Japan, with 51 hotels and 14,130 rooms in its portfolio, and a total acquisition price exceeding US$3.4 billion.

Beyond hospitality, SC Capital Partners has also made investments across multiple real estate sectors in Japan, including multifamily, student accommodation, corporate housing, office, retail, and credit.