Japan Airlines has confirmed it will sell a stake in JAL Hotels to Hotel Okura as it continues to implement its restructuring plan.
The Japanese flag-carrier filed for bankruptcy protection in January this year, with the national government stepping in to bail out the troubled carrier.
Under the terms of the deal Japan Airlines committed to focusing on core business, with the sale of a 79.6 per cent stake in JAL Hotels a casualty of this.
Japan Airlines - which currently holds a 90.7 per cent stake in the hotel chain through its wholly-owned subsidiary Japan Airlines International - declined to disclose the value of the share sale.
The carrier will retain an 11.1 per cent stake in JAL Hotels.
JAL Hotels operates 40 hotels in Japan and 18 hotels overseas.
In a statement to markets Hotel Okura said: “Showing great affinity for each other as partners who share corporate direction and vision, Hotel Okura and JAL Hotels expect that the business synergy from the strong alliance produced through the transaction described in this announcement will not only deliver merit in terms of group size, international competitiveness and enrichment of human resources, but will also generate varied positive effects in areas such as marketing, business development, further expansion of existing training programs, information sharing and increased valuation of the brand overall.”
Japan Airlines confirmed the deal would be completed by the end of September, as the carrier prepares to present the latest stage of its restructuring plans to the Tokyo District Court by the end of August.
Hotel Okura presently operates 24 hotels in Japan and abroad.