Osaka's iconic former Takashimaya heritage site transformed into posh hotel residence by Ascott

OSAKA - The Ascott, the lodging business unit of Singapore real estate firm CapitaLand, has given a facelift to a pre-war Japanese heritage site in Osaka and turned what was once a department store into a luxury residential hotel.

Located in Osaka's Namba entertainment district, the east annex of Takashimaya department store was built in 1928 and is recognised as a tangible cultural asset by the Japanese government.

The seven-storey Renaissance-style building was reopened on Monday (Jan 20) as the 313-room Citadines Namba Osaka, after a refurbishment that reportedly cost 14.5 billion yen (S$177.2 million).

Monday also saw Takashimaya unveil its refurbished archival exhibition hall in a separate wing that details its rise from its humble beginnings as a used clothes and textile business in Kyoto in 1831 to a household brand today.

The collaboration was first mooted by Takashimaya President Yoshio Murata and CapitaLand chief executive officer Lee Chee Koon around 2015. Construction took about two years.

"Everything we do, we must think of the community - how to add value, how to build for the future and connect with the past," Mr Lee told The Straits Times.

Mr Murata told reporters that he hopes the property will contribute to machizukuri (community building) and become instrumental to the development of Namba as a gateway to Osaka and the wider Kansai region.

He said the design philosophy behind Citadines Namba Osaka was to create a "department hotel", and the numerous department store-related murals throughout the hotel embed, with a whimsical touch, embed real items like bags and shoes within the artwork.

The original Showa-era facade is retained, while the modern makeover to the interior incorporated original touches like the ceilings, beams and marble panels, creating a space where the "old and new intersect", said Mr Murata.

"With Japan's thriving economy and inbound travel market, we see great opportunities to expand in the country where we have a strong portfolio of over 5,000 units across more than 30 serviced residences, hotels and rental housing properties in nine cities," said Mr Tan Lai Seng, The Ascott's regional manager for Japan and South Korea.

The Ascott is set to launch a property in the vibrant Tenjin district of the southwestern city of Fukuoka, under its lyf brand next year. A Citadines property is also set to open in Yokohama, south of Tokyo, in 2023.

Mr Kevin Goh, The Ascott's chief executive officer, told ST that he is bullish about the Japanese market despite the stiff competition.

"Japan has been very resilient business-wise. We don't see big drops or dips, and there is a lot of support from both business and leisure tourists," he said, adding that he was confident given that The Ascott "brings different angles and concepts from its competitors".

Tourist arrivals continued to set new records, growing 2.2 per cent last year to 31.88 million. Japan targets 40 million visitors this year, and 60 million by 2030.

Mr Goh noted upcoming attractions in the Kansai region as key drivers of growth. These include the Super Nintendo World attraction at Universal Studios Japan that is set to launch this summer and features characters from Super Mario, and the World Expo in 2025. Osaka is also seen as a frontrunner to host one of Japan's three planned integrated resorts.

The Takashimaya East Annex, located about 10 minutes by foot from the Namba and Nipponbashi subway stations, was first converted into offices for Takashimaya in 1968 before its latest reincarnation as Citadines Namba Osaka.

The property is equipped with a 24-hour gym, residents' lounge and children's playroom.