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Morgan Stanley to buy 13 ANA-owned hotels for $2.4 billion; ANA still in debt

April 13, 2007
By Ken Worsley


In late March, we learned that in 2006, land prices across Japan had risen for the first time in 16 years. One factor behind that rise has been the massive influx of foreign money; at the close of 2005 there were 14 REITs (Real Estate Investment Trusts) operating in Japan, and at the end of 2006, that figure had shot up to 26. At the forefront of this trend have been Morgan Stanley, Goldman Sachs, Nippon Building Fund, and private equity fund Lone Star.

In 2006, Morgan Stanley alone snapped up $8 billion worth of Japanese real estate. Today, Morgan Stanley announced that it had agreed to buy 13 hotels owned by All Nippon Airways for 281.3 billion yen, or $2.4 billion.

That’s a big day of spending. We should keep in mind, however, that the Tokyo Stock Exchange REIT Index has climbed 39% in the year to today.

Sounds great: The hotels were valued at 150 billion yen on ANA’s books, ANA is 783 billion yen in debt, and the company is desperately trying to sell off assets to buy new planes. So, it might be fun to visit these hotels, but you might think twice about flying ANA to get there, at least for now.

Filed Under Airlines, Barbarians at the Gate, M&A, Real Estate 

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Comments

3 Responses to “Morgan Stanley to buy 13 ANA-owned hotels for $2.4 billion; ANA still in debt”

  1. Garrett on April 15th, 2007 12:51 am

    There’s a brand there, though. I’d say Morgan Stanley would be wise to find a way to keep the ANA name on those hotels - Japanese consumers see “ANA” as a mark of quality on a hotel.

  2. Ken Worsley on April 15th, 2007 1:25 am

    I have no idea what they’re doing about the names on the hotels, though I’m guessing that they won’t change, just MS will be running them from now. I’m not really sure how any many ANA hotels other than the big one in Roppongi could be termed a ‘quality’ hotel though. Some of them really are fairly badly in need of remodeling.

  3. いま話題の検索語とは？ on April 19th, 2007 9:27 pm

    ANA…

    ANA プロフィール検索 動画検索 画像検索…

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