JAL Hotels is planning to launch a luxury hotel in Dubai on Sheikh Zayed Road in April 2010, despite financial difficulties plaguing its parent company, Japan Airlines (JAL). JAL Hotels became the first Japanese company to operate hotels in the region when it opened the JAL Fujairah Resort and Spa in 2007. The new 471 room Hotel JAL Tower Dubai will be a five star property aimed at business travelers.
JAL has faced severe financial difficulties this past year due to the global downturn in travel. The carrier is Japan’s largest by revenue, and the government has bailed it out four times. This year JAL’s market value dropped by fifty percent. Recent reports indicate the carrier may be put through bankruptcy proceedings, and Delta Airlines and American Airlines are in a bidding war for a minority stake in order to obtain access to its Asia network.
