Polaris Holdings KK (“Polaris Holdings”) aims to deliver superior long-term earnings growth and maximize shareholder value by developing and operating real estate in hospitality and other fields in carefully selected locations. Polaris Holdings will contribute to creating a better society through such efforts. As for the properties we develop, we aim to respond to specific and currently underserved needs of foreign and domestic guests in hospitality and other fields, and look to contribute to the creation of a better society through such efforts.
- Balance interest among stakeholders including guests, employees, property owners, clients, local communities, banks and shareholders. Create and develop brand(s) that guests want to stay at, employees want to work for, clients want to deal with, local communities and municipalities want to attract, banks want to lend to, and shareholders want to invest in.
- Employ high-quality hospitality, finance and real estate professionals by offering competitive working conditions and responding to various needs through such combination.
- Establish a culture for risk management where we clarify, eliminate, and reduce financial, fiscal, operational, environmental, and natural disaster risks in-house to realize stable long-term earnings.
- Adopt an asset-light business model and carefully manage risks by wisely and tactically utilizing the balance sheet. Develop, acquire or reposition carefully selected real estate in hospitality and other fields and sell properties to those who share the vision of fair risk/distribution of return after stable operation.
- Analyze the hospitality market with endless zeal, discover specific and currently underserved needs of foreign and domestic guests, and develop as well as operate unique and competitive hospitality properties enabling sustainable profit growth.
Asset Management and Risk Management Business Model
Polaris Holdings aims to deliver long-term earnings growth and to maximize shareholder value by developing and operating strategically located properties that can respond to specific and currently underserved needs of foreign and domestic guests in hospitality and other fields.
|Profit Drivers||Balance Sheet Usage/Impact|
|Hotel operating profit (Master Lease, Management Contract)
– Fair profit sharing between operator and owners
|Real estate development profit
– Competitive hospitality and other properties that serve underserved needs
|Real estate development management/brokerage fees||Low|
Target Minimum ROE of 15%
Immediate Key Initiatives
Polaris Holdings aims to deliver superior long-term growth in earnings (minimum target ROE of 15%) and to maximize shareholder value by having SAG as its sponsor and proactively utilizing SAG’s specialized resources. Polaris Holdings has set the following seven items as immediate key initiatives to be achieved.
Improve board construct and governance structure to position for maximum performance✓ [SHOW CURRENT/PROPOSED] (Done)
Improve IR communication and transparency✓ More transparent and contemporaneous Japanese and English disclosure✓ Generate interest and support from sophisticated, institutional shareholders globally
Enhance profitability of hotels currently under management
Develop a new hospitality brand/product that serves the underserved needs of foreign and domestic guests
Establish a Real Estate Department led by senior executives with strong experience and track record✓ Enter into property management agreement with Star Asia Sogo Kaihatsu Co., Ltd. (Done)✓ Initiate sourcing effort for compelling hotel development sites
Enter into Strategic Pipeline Agreement with Star Asia Investment Management Co., Ltd. (Done)
Dispose of non-core properties at maximum values and reduce high interest bearing liabilities (Done)