Malaysian, Japanese banks will be considered for Okinawa project
including US$50 million for land cost, funded by RHB Bank of Malaysia, Mizuho Bank, Shinsei Bank and Tokyo Star Bank. Tan said the payback period for Four Seasons Kyoto will be quick because of the total sales achieved so far.
On whether it will work with RHB Bank for the project in Okinawa, Tan said it will consider any Malaysian bank that is competitive, as well as Japanese banks.
“Japanese banks look at us differently now as they see we can deliver,” he said.
Tan said Four Seasons Kyoto was an “opportunistic investment” as it acquired the land for a good price in 2008 when the economy was slow.
“Back then, on a per square foot basis, the price was less than half of the price of a hotel or land in Kuala Lumpur’s Golden Triangle and the hotel rate in Kyoto was three to four times that of Kuala Lumpur. The numbers looked good. It was a good buy,” he said.
Tan added that the hotel business in Japan is doing well now, especially after the liberalisation of visas, which provided a boost to tourism.
Four Seasons Kyoto general manager Alex Porteous expects the average hotel occupancy to be about 65% during the first year of operation. He said the room rates, which are over US$1,000 per night now, will see incremental increases based on three-year and five-year plans.
Four Seasons currently manages 104 properties with another 34 under planning or construction worldwide. In Japan, it has two properties namely Four Seasons Kyoto and Four Seasons Hotel Tokyo located at Marunouchi.