APA Group Completes Acquisition of Ishin Hotels Group for Strategic Expansion

APA Group's Strategic Acquisition of Ishin Hotels

On October 2, 2023, APA Group, one of Japan's largest integrated urban development companies, announced the complete acquisition of Ishin Hotels Group through its subsidiary, APA Holdings. This bold move aims to further expand its chain of hotels and solidify its position in the competitive hospitality market.

Overview of Ishin Hotels

Ishin Hotels Group, headquartered in Chuo, Tokyo, has been operational since January 2001. The company manages and consults on hotels across Japan and operates urban hotel brands including "the b hotels" and "Centmain Nagoya." As of December 2024, Ishin manages 17 facilities comprising 2,643 rooms located in major regions including Hokkaido, Tokyo, Aichi, Osaka, Hyogo, and Fukuoka.

Purpose Behind the Acquisition

The acquisition is part of APA Group's mid-term management plan, “AIM 5,” which targets a network of 150,000 rooms by March 2027. While APA has traditionally expanded its portfolio through direct ownership and franchising, the company recognizes the need for faster growth. Ishin, which specializes in operations without owning real estate and utilizes rental and management contract models, will allow APA to penetrate new markets and increase its footprint more efficiently. This initiative is expected not only to accelerate the growth of the hotel network but also to diversify the choices available to customers, thereby enhancing the attractiveness and competitiveness of APA's reservation platform, "APA Choku."

Ishin's Management Approach

Following the acquisition, Ishin's management, led by President Rie Yong-Kong, will retain its operational autonomy. The APA Group will support Ishin as a shareholder but will allow it to continue its established management policies and in-house systems. Hotels within the Ishin brand will participate in the "APA Choku" reservation platform while maintaining their unique brand identity and operational strategies.

To create synergies between APA and Ishin, a practical examination project team will be established. This team will focus on joint funding assistance for new openings, collaborative procurement of materials, and integration of IT infrastructure, ensuring that both companies maximize their operational efficiencies.

About APA Group

APA Group is the largest hotel network in Japan with a total of 954 hotels and 134,847 rooms across the country, including ongoing construction and planned projects. The company is building on the success of its previous “SUMMIT 5” strategy, which started in April 2010, and has launched a new five-year plan named “AIM 5 – APA Innovative Movement” as of April 2022. As the hospitality landscape transforms in the post-pandemic world, APA Group is committed to leveraging digital transformation and changing consumer needs to solidify its status as the dominant hotel chain in Japan, targeting 150,000 rooms by March 2027.

For more information about APA Group's real estate and hotel sales inquiries, visit APA Group's official site.