(28 Apr 2021) Shangri-La has entered into a new joint venture with Samty Co., Ltd to develop a luxury hotel in Kyoto, Japan.
The location of the proposed hotel is just north of the Nijo Castle, an UNESCO World Heritage Site and one of the most popular tourist destinations in Kyoto.
The hotel, which will be Shangri-La’s second hotel in Japan after Shangri-La Tokyo, will be situated just four kilometres north of Kyoto Station, one of the main gateways into the city.
Lim Beng Chee, Shangri-La Group’s Chief Executive Officer, said, “We are thrilled with this new partnership with Samty Group. This project brings together Shangri-La Group’s hospitality expertise, and leverages Samty Group’s strong track record in real estate development in Japan, especially in the Kansai region where Kyoto is located. We look forward to working together, and we hope to begin welcoming guests to this new hotel by 2024.”
The parcel of land on which the hotel will be built was acquired by Shangri-La in September 2019. On 1 April 2021, Shangri-La and Samty Group entered into a sale and purchase agreement (SPA) pursuant to which Samty Group acquired an indirect 80% interest in the property. The remaining 20% interest will continue to be held by Shangri-La Group. The completion of the SPA is conditional upon the fulfillment of certain conditions precedent and is expected to take place in two tranches by the end of 2021.
Yasuhiro Ogawa, Samty Group’s Representative Director and President, said, “Growing our hotel portfolio is a key strategy in Samty’s business plan. This is our first luxury hotel development, and we look forward to working with Shangri-La Group to seek further opportunities in this sector.”