KYOTO: Berjaya Group has officially launched the Four Seasons Hotel & Residences Kyoto, here and expects earnings to be immediate.
Founder Tan Sri Vincent Tan, who dubbed the Four Seasons Kyoto a trophy asset, anticipates the property to be in the black in fiscal year 2017, led by sales of the residences.
Four Seasons Kyoto has a total of 123 hotel rooms and 57 units of serviced residences.
Since the launch in June this year, more than half of the serviced residences have been sold for between US$5,000 and US$6,000 per sq ft, said Tan.
"For the remaining units, we plan to raise the selling price and we already have Japanese investors waiting to buy. We are quite confident to sell everything by early next year.
"The project was funded by RHB Bank of Malaysia, Mizuho Bank, Shinsei Bank and Tokyo Star Bank, and we expect the payback period to be quick because of the total sales achieved so far," said Tan, after the opening today.
Johor Ruler Sultan Ibrahim Sultan Iskandar and Mayor of Kyoto City Daisaku Kadokawa were the guests of honour officiating the event.
Also present were Tunku Tun Aminah Maimunah Iskandariah Sultan Ibrahim, Puan Sri Esther Tan, Tan Sri Danny Tan, Puan Sri Ivy Tan, Low Siew Beng (Vincent Tan's mother), Ambassador of Japan in Malaysia Makio Miyagawa, Ambassador of Malaysia in Japan Datuk Ahmad Izlan Idris, Governor of Kyoto Prefectural Office Keiji Yamada, founder and chairman of Four Seasons Hotels and Resorts Isadore Sharp, and Berjaya Corp Bhd chairman and chief executive officer Datuk Seri Robin Tan.
Four Seasons Kyoto was built by Kyoto Higashiyama Hospitality Assets TMK, a subsidiary of Berjaya Kyoto Development (S) Pte Ltd (BKyoto), which in turn, is a 50:50 joint venture company between Berjaya Corp and Berjaya Land Bhd.
BKyoto invested a total of US$380 million, inclusive of land cost, to develop Four Seasons Kyoto - the Berjaya group's signature and flagship development in Japan.
This development represents Berjaya’s third major project in North Asia after the Integrated Resort Development in Jeju, South Korea and the Great Mall of China Project in Beijing, China.
Four Seasons Kyoto general manager Alex Porteous said the average room rate (ARR) for the property is about US$1,000 and that it would be raised next year.
He also expects the average hotel occupancy to be in the region of 65 per cent in the first year of operation.
"There will be an incremental increase in AAR year-on-year. Kyoto is a big market, so there is a huge pie for us. Our advantage is that we are one of two high-end five-star accommodations in Kyoto," said Porteous.
Meanwhile, Four Seasons founder Isadore Sharp said the Four Seasons Kyoto is the 100th property under the group and he is confident that it will be one of the world's best.