Distressed Japanese hotel closes doors

Hotel Sendai Plaza was bought out by a special investment vehicle operated by Tokyo Marine Holdings, a major Japanese insurance holding group. In February 2007, Tokyo Marine also acquired the land that the hotel sat on, and, in light of this, Hotel Senzai agreed to pay rent in order to operate on that property. Details of the demise of this deal have not been disclosed, but domestic reports note that the hotel and Tokyo Marine have since been fighting over the rent agreement, leading to a court filing. Upon reviewing Hotel Sendai’s fiscal background - and uncovering its ill health - the court then foreclosed on the hotel. Media across Japan have further speculated that the hotel had not been paying its rent by the time of its foreclosure, but those details have not been confirmed.

The hotel initially opened in 1888, and its guests have included members of the royal family.

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• Topics
• Regulation
• Real estate
• North Asia