The Japan Airlines group said it would sell a 79.6 per cent stake in its hotel business subsidiary by the end of September as it continues to restructure, focusing on its core business.

JAL, which currently holds a 90.7 per cent stake in JAL Hotels Co through its wholly owned subsidiary Japan Airlines International Co., declined to disclose the value of the sale to Hotel Okura Co.

“There has been intense competition in the hotel industry, with a decline in guest figures following challenging economic conditions and the entrance of new overseas hotel operators,” JAL said in a statement.

The carrier, which filed for bankruptcy protection in January, will retain its remaining 11.1 per cent stake in JAL Hotels, which operates 40 hotels in Japan and 18 hotels overseas.

The brand names of Hotel Nikko and Hotel JAL City will be retained as part of the deal, JAL said.

The carrier is due to submit a finalised turnaround plan to the Tokyo District Court at the end of August.

Sign up to our free newsletters

Get the best updates straight to your inbox:
Please select at least one mailing list.

You can unsubscribe at any time by clicking the link in the footer of our emails. We use Mailchimp as our marketing platform. By subscribing, you acknowledge that your information will be transferred to Mailchimp for processing.