Star Asia Group Buys Japan’s Domestic Hotel Operator Minacia

Star Asia Group Buys Japan's Domestic Hotel Operator Minacia
Star Asia Group Buys Japan's Domestic Hotel Operator Minacia

Star Asia Group announced that a share transfer agreement was reached with Japan’s leading domestic hotel operator, Minacia Co., Ltd., on April 26, 2024, for the acquisition of all shares of Minacia.

Star Asia Group has long recognized the growth potential of the Japanese hospitality sector and has strategically invested in it even before the COVID-19 pandemic. In 2018, the group acquired a majority stake in Polaris Holdings, a hotel operator listed on the Tokyo Stock Exchange Standard Market, becoming its main sponsor. Amidst the challenges brought by the pandemic, Star Asia Group seized the opportunity to invest over JPY100 billion in well-positioned hotel assets as their operating performance and liquidity suffered. Additionally, the group has been enhancing its expertise in the hospitality industry internally, while also supporting Polaris’ expansion through substantial human and financial resources, including asset management outsourcing and co-investment opportunities.

Star Asia Group has made the decision to purchase 100% of the shares of Minacia from a third party. Minacia currently operates 39 limited-service hotels with a total of 5,180 rooms in major cities across Japan. This acquisition aligns with our strategic goal of actively investing in the hotel industry, which offers significant growth opportunities. With a history of over 30 years, Minacia has established itself as a leading hotel and restaurant management company in Japan. The company operates limited-service hotels under well-known brands such as Wing International and Tenza Hotel, the latter of which was introduced in 2020. These brands are widely recognized throughout Japan. Additionally, Minacia boasts a strong proprietary loyalty program that attracts a large number of repeat customers. The company also has extensive experience in the restaurant sector and is currently developing unique dining concepts both within and outside its hotel properties, leveraging the diverse regional characteristics of Japan.

Polaris currently manages 50 hotels with a total of 8,958 rooms in Japan and abroad. There are numerous similarities and compatibilities between Polaris’ limited-service hotel management business and Minacia’s operations. Star Asia Group, through strong sponsorship and significant management resources, including additional capital, aims to boost Minacia’s business growth in the competitive limited-service hotel sector. The group will strive to achieve economies of scale by investing in technology, sales and marketing, loyalty programs, and enhancing brand awareness in the market. Star Asia Group is optimistic about the potential synergies that can arise from the future collaboration between Minacia and Polaris.

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