Shangri-La Group Forms Joint Venture With Samty Group for a Luxury Hotel in Kyoto, Japan
Shangri-La Group announced 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, a UNESCO World Heritage Site, one of the most popular tourist destinations in Kyoto. It is conveniently situated just four kilometers north of Kyoto Station, one of the main gateways into the city. This hotel will be Shangri-La Group's second hotel in Japan, after Shangri-La Tokyo.
"We are thrilled with this new partnership with Samty Group," said Shangri-La Group Chief Executive Officer Lim Beng Chee. "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."
"Growing our hotel portfolio is a key strategy in Samty's business plan," stated Samty Group Representative Director and President Yasuhiro Ogawa. "This is our first luxury hotel development, and we look forward to working with Shangri-La Group to seek further opportunities in this sector."
The land on which the hotel will be built (the "Property") was acquired by Shangri-La Group in September 2019. On April 1, 2021, Shangri-La Group and Samty Group entered into a sale and purchase agreement (the "SPA") pursuant to which Samty Group acquired an indirect 80 percent interest in the Property. The remaining 20 percent interest in the Property will continue to be held by Shangri-La Group. The completion of the SPA is conditional upon the fulfilment of certain conditions precedent and is expected to take place in two tranches by the end of 2021.
One of 17 UNESCO World Heritage Sites in Kyoto, Nijo Castle hosts sprawling gardens and impressive buildings. Dating back to 1603, Nijo Castle was the Kyoto residence of Tokugawa Ieyasu, the first shogun of the Edo Period (1603-1867). In 1867, Nijo Castle was used as an imperial palace before being donated to the city and opened to the public as a historic site. In 1994, the historic building was designated as a UNESCO World Heritage Site and is described as one of the best surviving examples of castle palace architecture from Japan's feudal era.