THE Royal Hotel Royal Hotel to Open New Property in Nara Through Lease Agreement

TOKYO, Aug 05 (Pulse News Wire) – THE Royal Hotel,limited (9713.T) announced on August 5 that its board of directors had approved a basic agreement for leasing a new hotel property in Nara Prefecture. The move aims to expand revenue through strategic investment in future growth.

Under the agreement, which is expected to be finalized in September 2026, the hotel will lease a five-story steel structure building located in Nara City. The lease term is set to last between 15 to 20 years. Details of the rental fees have not been disclosed due to confidentiality agreements but are anticipated to exceed a significant portion of the company's prior fiscal net assets.

Scheduled milestones include signing the preliminary lease contract in August 2027, finalizing the main lease agreement in January 2029, and commencing operations in May 2029. Regarding potential impacts on financial performance, the company noted that the lease commencement date falls outside the current fiscal year, thus having no immediate effect on the 2027 March quarter results. Any subsequent effects will be promptly communicated.