Sega Sammy Holdings is set to sell its Phoenix Seagaia Resort in Japan to US-based Fortress Investment Group, redirecting its focus towards video games and other sectors.
Nikkei Asia reported reported that the company is overlooking the Pacific Ocean in Miyazaki, Seagaia, offering hotels, golf, and more, has rebounded financially in recent years, with Fortress’ acquisition said to coincide with a surge in inbound tourism to Japan.
The deal involves Fortress purchasing all shares in the operating company Phoenix Resort, with Sega Sammy acquiring 20 percent of voting rights through newly issued shares. Seagaia’s overnight guests rose by approximately 30 percent in the year ending March 2023, marking its return to profitability after 13 years.
Fortress, known for its presence in hotels and leisure, has around 30,000 hotel rooms in Japan and recently acquired Hotel New Akao in Atami.
Sega Sammy initially acquired Phoenix Resort from Ripplewood in 2012, sparking speculation about operating an integrated resort with a casino.
However, the company will now focus on video games and other ventures, having recently acquired Rovio Entertainment and announced plans to purchase US online casino gaming company GAN.
Seagaia, launched in 1993, faced financial challenges due to construction costs and economic downturns but saw brief profitability under Ripplewood’s management.
