Singapore’s sovereign wealth fund GIC has acquired 16 hotels in Japan operated by Marriott International for approximately 125 billion yen (around $51 billion), according to sources familiar with the transaction. The deal marks one of the largest recent real estate investments in Japan’s hospitality sector amid a boom in inbound tourism.

The portfolio includes properties from the Four Points Flex by Sheraton brand, a mid-range hotel chain with locations in 11 Japanese cities, including major tourist destinations such as Tokyo, Osaka, Kyoto, and Fukuoka. The acquisition follows the announcement by US investment firm KKR on September 25 that it had sold Four Points Flex by Sheraton, although KKR did not disclose the purchaser or sale price. Representatives for both GIC and KKR declined to comment on the deal.

Japan has recently experienced a surge in foreign visitors, with tourist arrivals surpassing 40 million for the first time in 2025, reaching approximately 42.7 million, according to data from Japan’s Land Ministry. The weak yen has played a significant role in boosting tourism by making Japan a more affordable destination for international travelers.

Hotels are viewed as attractive real estate investments in Japan’s current economic environment. Unlike other asset classes, hotels can adjust room rates in response to rising costs and increased demand, providing a degree of resilience against inflation. This pricing flexibility helps maintain profitability even amid Japan’s ongoing increases in the cost of living.

GIC’s acquisition is part of a broader trend of significant foreign investments in Japan’s hotel sector over the past few years. In 2023, a foreign investor group purchased 27 resort hotels owned by Daiwa House Industry for approximately $900 million. Earlier this year, Japan Hotel REIT Investment Corporation acquired the Hyatt Regency Tokyo hotel for 126 billion yen. Additionally, KKR had previously acquired 14 hotels in 2024 from Unizo Holdings, which had entered court-supervised restructuring in 2023 due to difficulties in repaying bonds.

These transactions reflect growing international confidence in Japan’s hospitality market, driven by the resurgence of tourism and the sector’s ability to adapt to inflationary pressures.