Termination of the management agreement for Rihga Royal Gran Okinawa and conversion to a franchise
First written in FY2017-Q3. 1 of 2 entries say "Advanced", first in FY2017. Latest entry: FY2017.
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- FY2017AdvancedAnnual report
「At the request of the party that had commissioned the Company to manage RIHGA Royal Gran Okinawa, the Company terminated the operating-management contract before its expiration. As a result, the Company recorded a contractual penalty of ¥257 million as penalty income under special gains for the consolidated fiscal year.」
The termination of the operating-management contract for the Okinawa hotel was completed, and a contractual penalty of ¥257 million was recorded. The text does not confirm completion of the conversion to a franchise agreement. - FY2017-Q3First statedAnnual report
「On 26 January 2017, the Company resolved, in response to a request from Gran Hotel Operations Co., Ltd., the operator that had commissioned the Company to manage RIHGA Royal Gran Okinawa, to enter into an agreement with GHO Co., Ltd. on 27 January 2017 covering the following matters, conditional on a change in the owner of GHO Co., Ltd. effective 1 March 2017: ① mutually terminate the operating-management contract effective 30 April 2017; and ② begin discussions on entering into a franchise agreement from May 2017 onward, following the mutual termination of the operating-management contract.」
The Company entered into an agreement to terminate the operating-management contract at the end of April 2017 and move to discussions on entering into a franchise agreement from May 2017 onward. The disclosure also stated that a contractual penalty of approximately ¥230 million arising from the early termination was expected to be recorded as a special gain in the fourth quarter.