AB Capital buys Residence Hotel Stripe Sapporo, expanding Japan portfolio to 15 properties
AB Capital Investment has acquired the 161-room Residence Hotel Stripe Sapporo, adding a 15th hospitality property to its Japan portfolio. The apartment-style hotel near Hokkaido University and JR Sapporo Station will be refurbished and repositioned under an operating partner.
Fund manager AB Capital Investment has acquired the Residence Hotel Stripe Sapporo on Japan’s Hokkaido island, bringing the hospitality specialist’s portfolio in the country to 15 properties.
AB Capital said the apartment-style hotel’s position directly opposite the Hokkaido University campus and a five-minute walk from JR Sapporo Station’s North Exit will help draw demand from students and academics, in addition to people visiting the island for tourism or to attend conferences, giving the 161-room asset a balanced demand profile.
“By pairing a prime location with a highly capable operating partner and a compelling entry price, this transaction strengthens our portfolio’s defensive positioning while creating pathways for long-term value creation and attractive risk-adjusted returns for our investors,” AB Capital chief executive Alan Kam said.
The central Sapporo investment comes as hotels continue to rank as a most-favoured asset class for many investors in Asia Pacific, with Japan’s hospitality industry standing as a top target this year. Japan led APAC with US$1.9 billion in purchases of hotels during the first six months of 2026, according to JLL.
The firm said it acquired the Residence Hotel Stripe Sapporo via its AB Capital Fund II, and has slated a refurbishment and strategic repositioning of the property in partnership with a Japanese hotel operator. AB Capital plans to upgrade the asset’s technology, modernise guest facilities, and optimise room functionality to meet the requirements of leisure and business travellers.
This latest acquisition was announced during the same week that AB Capital said it has hired former Pimco Prime Real Estate head of acquisitions Satoshi Yamashita as a director with its team. The fund manager’s AB Capital Fund II earlier this year acquired the 123-room Smile Hotel Sapporo Susukino Minami business hotel, and also picked up 3S Hotel Atsugi and 3S Hotel Hiratsuka in Kanagawa prefecture in 2026, adding a combined 401 rooms to its Japan hospitality portfolio.
Investment in hotel properties jumped 75 per cent in the first half of 2026, compared to the same period last year, with institutional investors continuing to be drawn to the asset class’s yield advantages. Sapporo has drawn a wave of hotel investment amid a steady uptick in inbound tourism and increased interest from technology companies seeking to tap Hokkaido’s renewable energy potential. United Airlines plans to offer three weekly flights between San Francisco and Sapporo starting on 11 December, the first nonstop flights between the continental US and Hokkaido’s capital.
