"This sale underlines the strength of the region's capital markets, and in particular, investors' desires for real estate in the world's second largest economy," says JLL managing director Scott Hetherington. Based in Asia, Hetherington negotiated the transaction in tandem with EVP Tomohiko Sawayanagi from the Japan office. Marquee assets now owned by Morgan Stanley include the newly cast ANA InterContinental Tokyo and the Manza Beach Hotel & Resort.

The deal fits into Morgan Stanley's global hotel investment strategy, company officials say in a release announcing the agreement. "This transaction highlights Morgan Stanley's continued long-term commitment to investing in Japan and optimistic outlook for the nation's economy and hotel industry," adds the release. The hotels will be operated under an existing long-term management contract with IHG ANA Hotels Group Japan, a joint venture company started by ANA and InterContinental Hotel Group in December.

Creation of IHG ANA Hotels Group Japan and this week's sale to Morgan Stanley culminate a review begun by JLL four years ago to assess whether hotels were a core business for the airline. ANA opted to form a joint venture with InterContinental to manage the 33 hotels it owned, leased and operated in Japan and internationally. The portfolio was packaged with long-term operating agreements that Hetherington says reflect "a profound change" in the manner in which hotels are acquired.