Tuesday, January 30, 2007

Toyoko Inns to Enter EUR 100 Million Leaseback of Five Hotels in Europe

The Sunday Business Post - January 28, 2007

Developer Frank Gormley of Howard Euroscape has signed a joint-venture agreement with Japanese hotel operator Toyoko Inns to expand the chain in Europe. The first phase of the contract is worth €100 million and involves the acquisition and development of five sites which will then be leased back to the operator.

The deal will involve Toyoko signing 30 year leases with upward only rent review linked to the retail price index. Gormley expects a 10per cent rental return on the initial project cost and said there is potential to sell on the long-term investment.

Toyoko will focus on opening in Britain and Europe but Gormley said there was a chance the joint venture would also look at opening hotels in the United States. The Toyoko Inn group was established in 1986, and the group head office is located in Kamata. It operates more than 100 hotels, all of them in Japan except for one in China. Sphere: Related Content

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