The operator of a Hawaii-themed spa resort in northeastern Japan has accepted an acquisition offer from a US investment group.
Joban Kosan says its board of directors on Monday agreed to take the offer from Fortress Investment Group. The firm runs Spa Resort Hawaiians in Iwaki City, Fukushima Prefecture.
Fortress plans to take the Japanese firm private and delist it around March next year. It says it will maintain the resort branding and keep the staff.
Joban Kosan’s tourism division recorded a net profit of 934 million yen, or over 6-and-a-half million dollars, for the year to March. During that time the resort pulled in 930,000 day visitors and 370,000 overnight guests.
Joban Kosan launched Spa Resort Hawaiians in 1966. The hit 2006 movie Hula Girls made it a household name across Japan.
But Japan’s shrinking population and the aging of the facility have presented growing challenges for the operator, which has struggled to raise the funds needed for large-scale capital investment.
In recent years, Joban Kosan has increased its borrowing, and by the end of March its interest-bearing debt had ballooned to around 210 million dollars.
Fortress runs several hotels including a major resort complex in southwestern Japan. The acquisition would bring fresh management expertise, a bigger customer base and more financial resources to the site.