On the 28th, Polaris Holdings <3010> announced that its subsidiary, Fino Hotels, has decided to conclude a memorandum of understanding with Star Asia Management of the Star Asia Group and the city of Kyoto for hotel operation.

The parent company group of Polaris Holdings, the Star Asia Group, is planning to acquire a hotel property in Kyoto City, Kyoto Prefecture. They will conclude a "memorandum on hotel operation" in order to appoint a Polaris Holdings group company as the hotel operator for the property. The conclusion of this memorandum is expected to achieve further expansion of the collaborative ecosystem and operation platform with the Star Asia Group.

As negotiations are ongoing with the current property owner, the hotel name is not disclosed. However, since it is an existing property already completed, the group is expected to start hotel operations and generate revenue within the current fiscal year. Moreover, the property is expected to be operated under a fee-based operational commission contract, which is anticipated to lower the break-even point of the business, as well as improve earnings, ROE (Return on Equity), and shareholder value. Additionally, the property is planned to be operated under the "KOKO HOTEL" brand, contributing to the further expansion of the company group's portfolio and the enhancement of the recognition of its own brand.