JAL Hotels Co., Ltd. announced today that the company will open Hotel Nikko Saigon in Ho Chi Minh City, Vietnam, in October, 2011. The company jointly signed a hotel management agreement with Fei Yueh Vietnam Co., Ltd. (Headquarters: Ho Chi Minh City; Chairman: Lin Chin Po), the owner of the hotel, on February 18. Hotel Nikko Saigon will be JAL Hotels' second hotel in Vietnam after Hotel Nikko Hanoi, which was opened in 1998.

Fu Tsu Construction Co., Ltd. (Headquarters: Taipei, Taiwan; Chairman: Lin Chin Po), the parent company of Fei Yueh Vietnam Co., Ltd. and one of the major construction companies in Taiwan, also owns two Nikko Hotel International properties: Hotel Royal Taipei and Palau Royal Resort. JAL Hotels has had management contracts to operate these hotels since Hotel Royal Taipei opened in 1984, and the two companies have enjoyed an excellent relationship for the past 25 years. JAL Hotels has been seeking an opportunity for quite some time to open a hotel in Ho Chi Minh City, the largest center of commerce in Vietnam. The contract for the management agreement was based on mutual benefit for both parties.

Hotel Nikko Saigon will be built in the newly-developed large-scale commercial complex "Royal Centre Project", located in Ho Chi Minh City. Construction of the hotel is expected to be completed as the second phase of the development. The hotel will have 22 floors above ground and 3 basement-level floors, with 335 guest rooms occupying a total of 58,437 square meters (including 19,249 square meters at the basement level). The hotel's main guest rooms will provide a spacious 40 square meters, larger than most guest rooms in hotels of the same class in the city. The hotel's facilities will include an all-day dining facility that includes Japanese cuisine, as well as a Chinese restaurant, and will also provide guests with banquet rooms, a business center and fitness club. The hotel is expected to cater to the demands of both
business and leisure clientele. The first phase of the development opened in December, 2008 with a shopping mall and office space. The third phase will be completed in 2013 with four luxury residential towers.

Ho Chi Minh City is the largest center of commerce in Vietnam, with a population of 6.4 million. The city was formerly called Saigon, and the old name still remains in the names of many hotels and other types of facilities. Hotel Nikko Saigon will be located in District 1, the city's financial, commercial and political hub, which also includes the city hall and many consulates. It is also a main tourist spot with attractions that include the Saigon Notre-Dame Cathedral, Municipal Theater-Saigon Opera House, HCMC Central Post Office, Reunification Palace and Ben Thanh Market. Japan Airlines has 6 flights to Ho Chi Minh per week, (23 flights including code-sharing flights) from Japan. JAL Hotels expects some cross-over business
from these JAL Group clients.

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 13 mid-priced hotels for business travelers in Japan. JAL Hotels Co., Ltd. currently has 59 hotels worldwide, in Europe, the Americas, the Middle East and throughout Japan and the Asia/Pacific region.

In 2009, JAL Hotels plans to open one hotel in China, the 388-room Hotel Nikko Shanghai. Openings in 2010 will include one hotel in UAE and two hotels in China: the 471-room Hotel JAL Tower Dubai, a Nikko Hotels International property, the 500-room Hotel Nikko Wuxi, and the 411-room Hotel Nikko Guangzhou. In 2011, the company plans to open the 300-room JAL Bahrain Resort & Spa, a Nikko Hotels International property, in Bahrain.