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JAL will get out of hotel business

Date Posted: 2010-06-03

A total of 47 hotels in Japan and another 17 overseas are soon to receive new names as Japan Air Lines gets out of the hotels business.

The struggling Japanese flag carrier is now in the process of realignment under the Corporate Reorganization Rehabilitation Law after plunging deeply into debt and filing for a bankruptcy, and the rehabilitation process is requiring JAL get out of the hotel business and focus more intensely on its airline operations. Five JAL hotels are operated by the airline in Okinawa, although all are owned by foreign investment companies. The five are Hotel Nikko Naha Grand Castle, Hotel JAL Naha City, JAL Private Resort Okuma, Hotel Nikko Alivila in Yomitan and Hotel Nikko Yaeyama.

A JAL spokesman says JAL hotels are being sold to Hotel Okura in Tokyo, but there appears to be some question of exactly what the airline’s plans are. A JAL public affairs spokesman suggested the airline would like to continue operating with the JAL Hotels name, and not Hotel Okura. JAL Hotel Naha City said “we have a long term contract with the owner and JAL Hotels to operate. I don’t think our name will be changing to Okura.”

Another official at Japan Air Lines said they’ve a new idea that would change their name to Hotel Okura Nikko, but all will depend on what the investors say.

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