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 Nikko Hotels International Awarded Management
Contract for the 160 room Palau Royal Resort
Now Under Construction

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TOKYO, July 26, 2004 - The tropical resort setting of The Republic of Palau, famous for its pristine diving environment, will be the location of a new Nikko Hotels International resort hotel that is scheduled to open next summer, according to JAL Hotels Company, Ltd., operator of the Nikko Hotels International luxury hotels chain.  "Palau Royal Resort," now under construction, is expected to open in July 2005.

The owner of the hotel is Royal Palau Enterprises, Ltd., headquartered in the Republic of Palau.  Under the hotel management contract, the hotel will be entitled to use the Nikko Hotels International name and logo mark. The parent company of Royal Palau Enterprises Ltd., Hotel Royal Taipei Company, Ltd., headquartered in Taipei, Taiwan, owns Hotel Royal Taipei, another property in the Nikko Hotels International chain.

"Since Hotel Royal Taipei opened in 1984, JAL Hotels Company and Hotel Royal Taipei Company have built mutual trust and a good business relationship," said Shosuke Machida, president of JAL Hotels Company. "Hotel Royal Taipei has maintained a high occupancy rate and established a prominent position in Taipei, offering high-standard services with personal attention.  We are looking forward to working with our good business partners at Hotel Royal Taipei Co. on the new property being built in Palau."

Palau Royal Resort will be located in Koror, on the east coast of Malakal Island, near a port for diving ships. Palau, which consists of more than 300 islands and is located 465 miles east of the Philippines in the Pacific, is known as one of the best diving spots in the world. The country has a reputation for strictly protecting its environment and natural resources, and it has gained a position as a supreme resort destination. The six-story hotel, which will be built on a 328,310 square-foot property, will occupy 161,458 square feet of floor space in total. All of the 160 guest rooms, which will average 538 square feet, are spaciously designed with balconies for magnificent ocean views. The hotel's amenities will include: a full-service spa -- the first one in Palau; a gym; a private beach; an outdoor pool; a tennis court, shops and dining facilities.

Nikko Hotels International is an international luxury hotel group operated by JAL Hotels Co., Ltd., a subsidiary of Japan Airlines, headquartered in Tokyo, Japan. In addition to Nikko Hotels International, JAL Hotels also operates Hotel JAL City, a chain of 10 mid-priced hotels for business travelers in Japan, as well as independent hotel properties.  JAL Hotels has 54 hotels worldwide, in Europe, Americas and throughout Japan and the Asia/Pacific region. Through a unique global alliance with the Le Meridien hotel brand formed in 2000, Nikko Hotels' guests have access to Le Meridien hotels worldwide, thus extending Nikko Hotels' marketing network to more than 170 hotels in over 63 countries and territories. The Nikko Hotels International partnership with Le Meridien covers all Le Meridien properties worldwide.


 
Contact:
Nikko Hotels International
Also See: Pan Pacific Hotels and Resorts Undertaking $50 million in Renovations at Most Every Property in Portfolio / July 2004
Outrigger Opens Newest Pacific Property in Palau / July 1998


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