The Royal Hotel, Limited announced a private placement for gross proceeds of ¥10,000,000,000 on January 31, 2022. The company will issue 40,000 class B preferred shares at a price of ¥50,000 per share for gross proceeds of ¥2,000,000,000 to new investor SMBCCP No. 1 Fund L.P., a fund managed by SMBC Capital Partners and 160,000 class C preferred shares at a price of ¥50,000 per share for gross proceeds of ¥8,000,000,000 to new investor DBJ Food and Beverage / Lodging Support Fund L.P., a fund managed by DBJ Regional Investment Co., Ltd. The company will incur expenses of ¥140,000,000 in the transaction.

The transaction is expected to close on March 30, 2022. The transaction has been approved by board of directors of the company and is subject to shareholder approval at the Extraordinary General Meeting of Shareholders to be held on March 28, 2022.