Leading Japanese hospitality company Hotel Okura Co., Ltd. will reorganize its group companies and establish a new corporate entity, Okura Nikko Hotel Management Co., Ltd. The reorganization is intended to consolidate and strengthen the company's hotel management business. Effective October 1st, Okura Nikko Hotel Management Co., Ltd. will operate three hotel groups, Okura Hotels & Resorts (26 luxury properties in 7 countries), Nikko Hotels International (37 luxury properties in 8 countries) and Hotel JAL City (11 mid-priced properties in Japan).
The reorganization will merge and replace two of Hotel Okura Co.'s subsidiaries: JAL Hotels Co., Ltd. and Orange Marketing Services, Japan Co., Ltd., under the Okura Nikko Hotel Management Co., Ltd. name. JAL Hotels, which operates Nikko Hotels International and Hotel JAL City, will absorb Orange Marketing Services, the Okura Hotels & Resorts sales and marketing arm. The operation of Okura Hotels & Resorts will be shifted from the Hotel Okura headquarters to the new entity.
"This reorganization is a rational and strategic step that will combine our resources to improve our efficiency and increase our competitiveness and expertise," said Toshihiro Ogita, President of Hotel Okura Co., Ltd. "The hotel market is becoming ever more competitive globally. We are constantly examining our business to seek innovations that will give us a competitive edge and help us reach our ultimate goal: to cater to our international clientele with the best possible service."
The reorganization marks five years since Hotel Okura Co., Ltd. acquired a majority stake (79.6 percent) in JAL Hotels Co., Ltd. in September 2010. Prior to that acquisition, JAL Hotels was a subsidiary of Japan Airlines. For the past five years, Hotel Okura and JAL Hotels have shared resources and worked on standardizing their hotel operations, unifying reservation and membership systems and benefits, and improving services.