星野リゾート・リート投資法人 is changing the operating structure of its properties and consolidating operations at Grand Prince Hotel Osaka Bay under Seibu Prince Hotels. It has also revised its earnings forecast in light of the expiration of the land lease agreement and the planned scale-back of its wedding business.
The company is reviewing the operating structure of its properties and will consolidate operations at Grand Prince Hotel Osaka Bay under Seibu Prince Hotels. Accordingly, the current arrangement, under which 48 of the hotel's 480 rooms have been operated as RISONARE Osaka, will end in November, when operations will be unified.
The fixed-term land lease agreement for business purposes will expire in March 2027. The company plans to demolish the wedding facilities on the leased land and return the site. With the opening of the Osaka IR scheduled for autumn, it aims to improve profitability by consolidating operations and scaling back its wedding business.
For the 27th fiscal period (fiscal year ending October 2026), the company expects to record ¥612 million as an extraordinary loss for the loss on disposal of buildings on the leased land and demolition costs. As a result, it forecasts a decline in profit of approximately 14.5% from the forecast announced in June, and plans to draw down retained earnings and allocate ¥501 million to distributions as a reserve for adjustment of temporary differences, etc. Distributions are expected to be ¥7,197 per unit, up 7.4%.
For the 28th fiscal period (fiscal year ending April 2027), the company expects to receive ¥260 million in outstanding proceeds from renovation work at RISONARE Osaka and forecasts a 5.4% increase in profit from its previous forecast. It plans to reverse the reserve for adjustment of temporary differences, etc. from the previous period, with distributions expected to be ¥6,355 per unit, down 7.2%.