HIS raises $214 million for new hotel developments and system investment through the third-party allocation of shares

HIS, one the largest Japanese travel agents, will raise 22.6 billion JPY (about $214 million) through the third-party allocation of shares to Long Corridor Alpha Opportunities Master Fund and M246 Segregated Portfolio under Hong Kong-based investor Long Corridor Asset Management Limited and HIS Chairman and President Hideo Sawada and its fourth stock acquisition rights.

HIS issues 5,246,000 stocks to raise 8 billion JPY (about $75.7 million) through the third-party allocation of shares and 14.6 billion JPY (about $138 million) by issuing new 87,003 stocks.

Out of the raised funds, 9.9 billion JPY (about $94 million) will be used for new hotel development programs, as HIS focuses on the hotel business as its third business pillar in addition to the travel business and theme park Huis Ten Bosch. 

HIS plans to open new hotels in Sendai (September 2021), Taki, Mie (October 2021), Kagoshima (August 2022), Nagoya (November 2022), Irabu, Okinawa (July 2022) and Uzbekistan (December 2021). 

For system investment, HIS will use 6 billion JPY (about $56 million) for development of BtoB ‘Global Platform,’  2.4 billion JPY (about $23 million) for enhancement of its IT system and 3.9 billion JPY (about $37 million) for improvement of its website and app. 

Global Platform is expected to function as a one-stop global distribution cannel for travel products HIS purchases in the world, such as air tickets, hotels or activities, for travel providers. 

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