Hoshino Resorts REIT, Inc. has announced that the Hoshino Resorts Group will end its operation of Risonare Osaka on November 23.
Two brands, including Grand Prince Hotel Osaka Bay, had been operated within the same building. Following the end of operations, management will transition to an integrated operating structure under Seibu Prince Hotels Worldwide, effective around December 1. All 480 guest rooms and related facilities will be operated collectively by Seibu Prince Hotels Worldwide.
Risonare Osaka opened on December 16, 2022, with a focus on early childhood education and the aim of attracting new customer segments. It has 48 guest rooms, with the Hoshino Resorts Group operating only a portion of the 28th floor.
The company explained that, as accommodation demand is expected to arise across the entire area following the opening of the integrated resort around autumn 2030, having a single operator market and manage all 480 rooms in an integrated manner would be more advantageous in maximizing revenue opportunities and improving cost efficiency. It also aims to reallocate management resources, as its target customers partially overlap with those of OMO7 Osaka by Hoshino Resorts.
In addition, the chapel building, “Le Salon Blanc,” located on land leased from the City of Osaka, will be demolished upon the expiration of the land lease agreement. Operations will end on October 31, and the site will be returned on March 31, 2027. The wedding business will continue at the guesthouse and chapel located on company-owned land. This will also eliminate annual expenses of ¥24 million for rent, property taxes, and other costs.
As consideration for consenting to the early end of operations, the company will receive a consent fee of ¥260 million from Horizon Hotels, the lessee. The amount will be recorded as operating revenue in the fiscal period ending April 2027. Meanwhile, in connection with the demolition, a total of ¥612 million will be recorded as an extraordinary loss in the fiscal period ending October 2026, comprising a ¥110 million loss on disposal of fixed assets, ¥301 million in amortization of land lease rights, and ¥200 million in demolition, removal, and related costs.
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