The initial public offering (IPO) is scheduled for 15 January and will enable Japan Leisure Hotels (JLH) to complete its investment in a portfolio of five hotels for a consideration of £19 million.

The five hotels are currently operating under the ‘Bonita’ brand and are run by investment company New Perspective, which JLH has appointed to manage its portfolio in Japan. The properties were recently valued by commercial real estate consultancy Colliers at approximately £21 million.

Following the IPO, New Perspective will seek further opportunities to acquire leisure hotels in Japan on behalf of JLH, which may then be refurbished and rebranded. JLH says that tough conditions in the sector have created opportunities to buy underperforming or distressed properties, a description that applies to most of the hotels in its existing portfolio.

JLH’s investments will be limited to Japanese leisure hotels, but it intends to consider a broad range of assets within this class. It will, however, focus on properties located in and around large centres of population.

The company aims to offer investors an absolute return, supported by a ‘stable and growing’ income stream.