U.S.-based Fortress Investment Group is set to acquire Joban Kosan, the operator of Spa Resort Hawaiians in Fukushima prefecture, Japan.

The acquisition, valued at approximately $98 million will be conducted via a two-phase tender offer. The first phase involves purchasing shares at 1,650 yen each, a 33% premium over the recent closing price, and will give Fortress at least 50.67% ownership by October 24.

In the second phase, shares from five major stakeholders, including Joban Kaihatsu, Mizuho Bank, and Joyo Bank, will be purchased at 1,240 yen, the current market price.

Spa Resort Hawaiians, located in Iwaki City, is a Hawaii-themed resort known for its hot springs, swimming pools, and hula dance shows. It was also the setting for the 2006 Japanese movie “Hula Girls”.

However, the resort struggled during the pandemic, suffering losses for four consecutive years through March 2022. During this period, Joban Kosan took restructuring measures, including offering early retirement to some employees in 2021.

Despite those challenges, guest numbers have begun to recover, with day visitors increasing by 24% and overnight guests rising by 21% in the year ending in March 2023.

As the resort’s recovery continues, Fortress aims to capitalize on its potential by attracting more foreign tourists.

“We believe this acquisition will bring much-needed revitalization to Spa Resort Hawaiians and expand our reach to international visitors,” a spokesperson for Joban Kosan said.

Fortress, which has extensive experience in managing hotels and leisure properties through its subsidiary Mystays Hotel Management, plans to make large-scale investments in the resort, such as upgraded facilities, and revise its pricing strategies, like eliminating discount plans and adopting seasonal variable pricing.

Fortress will also collaborate with its subsidiary Accordia Golf to manage Joban Kosan’s golf courses, to reduce operational costs through centralized purchasing. This acquisition follows Fortress’ recent purchase of the Phoenix Seagaia Resort in Miyazaki, further cementing its commitment to expanding investments in Japan’s hotel and leisure industry.