SINGAPORE - Ascendas Hospitality Trust (A-HTrust) has, through Ascendas Ariake Godo Kaisha, entered into a memorandum of understanding (MOU) to lease a hotel property to conglomerate Sotetsu Hotel Management Co from April 1 next year.
The property is a dual-brand accommodation comprising 790-room Hotel Sunroute Ariake and Oakwood Apartments Ariake Tokyo, which offers 122 serviced apartments.
Under the MOU, the existing fixed-term building lease agreement will be extended to cover the entire hotel property.
The tenure of the fixed-term building lease agreement will also be extended to March 31, 2033, and the entire hotel will operate under the "Sunroute" brand.
Ascendas Ariake Godo Kaisha is a wholly owned subsidiary of Ascendas Hospitality Business Trust.
Tan Juay Hiang, chief executive of the managers, said: "We are pleased to receive an attractive proposal from Sotetsu to extend the master lease to the entire hotel, which will help to improve the income stability to A-HTrust. We believe that a single hotel operator managing the hotel can create synergy as the hotel will be able to offer different room types under a single platform and also operate at higher cost efficiency."
Hotel Sunroute Ariake will be underdoing a renovation soon to refresh all its rooms and improve its competitiveness, A-HTrust highlighted.