Seagaia Resort Sold to Fortress Investment Group
Sega Sammy Holdings, the Japanese entertainment company behind the "Sonic the Hedgehog" video games, has announced the sale of its Seagaia resort complex in Miyazaki, Japan, to Fortress Investment Group of the United States. The financial terms of the deal were not disclosed.
The sale is expected to result in a gain of approximately 8.5 billion yen ($55 million) in extraordinary income for Sega Sammy in the fiscal year ending March 2025. Fortress was chosen due to its extensive experience in the hospitality industry, having acquired 176 hotels since 2011.
Following the sale, Sega Sammy will retain a 20% voting rights stake in Phoenix Resort Co., the operator of Seagaia, through newly issued shares.
The decision to sell Seagaia comes as Sega Sammy seeks to focus on its core strengths, including video games. The company's resort operations, which include Seagaia, have been impacted by the COVID-19 pandemic, which disrupted travel both within Japan and internationally.
Sega Sammy reported a decline in profit for the fiscal year ending March 2024, with earnings falling to 33 billion yen ($212 million) from 45.9 billion yen the previous year. However, the company's sales rose 20% to 467.8 billion yen ($3 billion).
Sega Sammy remains optimistic about its future, particularly in the area of Sonic licensing revenue, which has grown tenfold in the past five years. The company also has a diverse portfolio of businesses, including video games, toys, pachinko machines, and intellectual property in animation works.