Hotels Update (8865C)

TIDMJPLH

RNS Number : 8865C

Japan Leisure Hotels Ltd

14 March 2011

Japan Leisure Hotels Limited

("JPLH" or the "Company")

Hotels Update

Japan Leisure Hotels is today providing an update on its operations following the events in Japan at the end of last week.

Japan Leisure Hotels operates six hotels in Japan. The largest of these hotels is located in Sendai, which was the closest city in Japan to the earthquake's epicentre and was severely impacted by the tsunami.

In spite of this, the hotel building in Sendai has been left intact, although it did sustain damage which is currently being assessed. Basic infrastructure, such as gas, water, electricity and telephone services, is either sporadically available or not available at all, nor is it currently possible to supply the hotel for normal operations. As a result, the hotel has been shut down, and it is estimated that it will be out of operation for at least a month. This is likely to have a material impact on the performance of the Company.

Of the Company's remaining five hotels, the hotel at Yamagata was closed for 24 hours, but has recommenced operations, albeit on a limited basis. As a result of rolling electricity blackouts imposed by Tokyo Electric Company, the hotel at Isawa may also be affected. The other three hotels are operating normally.

Japan Leisure Hotels can confirm that all of its hotels' management and staff have been safely accounted for, with the exception of two employees who have yet to be contacted. None of our guests sustained any injuries whilst resident in the hotel during the earthquake.

As announced on 20 December 2010, the Company is in discussions with several parties, to enable the Company's largest shareholder, DKR Oasis Management Company, LP to exit its investment in the Company. These discussions are continuing, although it is likely that they will be extended as a result of these latest developments.

Further statements will be made as and when it is appropriate to do so.

Enquiries:

 
 Asset Manager 
  Steve Mansfield                       +81 3 4550 1820 
 
 Shore Capital and Corporate Limited 
  (NOMAD to the Company) 
  Dru Danford 
  Stephane Auton                        020 7408 4090 
 
 Pelham Bell Pottinger                  020 7861 3112 or 07802 442 
  Archie Berens                          486

This information is provided by RNS

The company news service from the London Stock Exchange

END

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