Nijo Castle, a UNESCO World Heritage Site — Photo by Shangri-La

Shangri-La Group today announced a new joint venture with Samty Co., Ltd ("Samty Group", listed in Tokyo with stock code 3244) 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 kilometres 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.

Shangri-La Group's Chief Executive Officer, Lim Beng Chee said, "We are thrilled with this new partnership with Samty Group. 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."

Samty Group's Representative Director and President Yasuhiro Ogawa said, "Growing our hotel portfolio is a key strategy in Samty's business plan. 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 parcel of land on which the hotel will be built (the "Property") was acquired by Shangri-La Group in September 2019. On 1 April 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% interest in the Property. The remaining 20% 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.