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Tuesday, October 20, 2009

JAL denied JAL Hotel rumors

Japan Airlines once again issued a statements (Japanese only) on its website denying the latest rumors regarding its hotel business.

Sankei News reports that JAL is going to sell its hotel business, JAL Hotels, which currently operates 58 hotels around the world under two brands: Nikko Hotels International (NHI) and Hotel JAL City (HJC).

JAL afraid this will freak out some of the customers (probably to avoid massive cancellations too), it issued the statement saying there is no final plan and the rumor regarding selling its hotel business is false. JAL will continue to operate its hotel under the JAL brand.

To me selling the hotels aren't really a big deal. ANA sold theirs few years ago (at a good price too) to let management focus on its core business. Sale of JAL Hotels will have the same effect. Even after ANA's sale, the hotels still uses ANA's brand. JAL can do the same with its if it ends up deciding to sell the hotel business. But I remember reading somewhere saying JAL's situation is different because they don't own some (or most?) of the hotel properties and therefore selling the hotel business won't bring it that much cash. But if this would allow JAL to focus and cut personnel (and pension) costs, I would go for it.

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