December 20, 2016
XYMAX Corporation
karaksa Spring hotel Kansai Air Gate

Conversion of Former Roadside Home Appliance Storeto Hotel is Now CompleteXymax Corporation (head office: Minato-ku, Tokyo; Representative Director: MasafumiShimada) (hereinafter "Xymax") is delighted to announce the completion of its
limited-service hotel, karaksa Spring hotel Kansai Air Gate (hereinafter "Kansai Air Gate"). The
summary of the new hotel in Izumisano, Osaka is provided at the bottom of this release.
The building of Kansai Air Gate was a roadside retail property occupied by a large homeappliance retailer. Our conversion of the building into a limited-service hotel is one of therare conversion projects of a roadside home appliance store. The building after theconversion meets all the facility requirements in the same manner as for new hotel
construction: "Hotel and Japanese Inn" under the Building Standards Law and Fire Service
Act of Japan and "Hotel" under the Hotel Business Act of Japan.
Before Conversion

After Conversion

The former building was a 7-meter-tall single-floor building. We installed a new frame tocreate another floor to make the building a two-floor property. By doing so, we effectively
used the Floor Area Ratio of the former building. The former store area is now comfortable
guestrooms. This was made possible by the three large open ceiling areas, which weredesigned to meet the daylight requirements of the hotel's guestrooms under the law. The
ceiling height of the former building remains in the spacious entrance area where reception
desk and a restaurant with a seating capacity of approximately 160 are located. There arethree new elevators, and also a slope on the side of the restaurant so that guests can moveto the upper floor smoothly.
Kansai Air Gate is suitable for a group travel. Of our 139 guestrooms, 82 rooms canaccommodate two to four people. The hotel has many connecting rooms too.
The rooms in Kansai Air Gate are designed for inbound tourists; the same target guests as
those of our other hotels opened in the spring of 2016 (Karaksa Hotel Osaka Shinsaibashi I,
which was converted from an office building; and Karaksa Hotel Kyoto I). We separated theshower booth and toilet so that both can be used at the same time based on ourassumption that two or more people may stay together in a room. We also made effort increating more space: there is no bathtub because our intended guests do not use it
regularly; and there is a space under the bed for large luggage. Our guests can use the highspeed Wi-Fi and universal power outlet in their room, making it easy for them to search
travel information on the internet.
The construction of the building was completed on October 25, 2016. We are now preparing
for the soft-opening set for January 16, 2017. The hotel operation will be provided by Xymax
Group. The hotel rooms will be sold in collaboration with the Shanghai Spring Investment
Japan Co., Ltd., a company incorporated in Japan as part of Shanghai Spring Group (SpringAirlines is the core business of the group).
Xymax is a company providing management services for various types of commercial
properties including office buildings and retail buildings. However, some of those properties
do not meet the demand of today's rapidly changing environment anymore and the value ofusing such properties is decreasing. Xymax looked for ideas to revive such properties andcame to the idea of hotels, which is now our core property revival strategy. The demand forhotel is expected to grow rapidly. We develop and operate hotels as a way to revivebuildings by conversion or to achieve efficient use of the land. Our hotel business aims toprovide ten hotel buildings (1,500 guestrooms) by 2019.

Name of Hotelkaraksa Spring hotel Kansai Air Gate

Location

588 Kashoji, Tajiri-cho, Sennan-gun, Osaka

Site Area

12,539.65 sqm

Gross Floor

After Conversion: 6,222.61 sqm

Area

Before Conversion: 4,339.3 sqm

Structure /After Conversion: Steel-frame building with two floors above ground

Floors

Before Conversion: Steel-frame building with one floor above ground

Renovation

Design: D&A Inc.
Construction: JDC Corporation

Completion

October 25, 2016

Guestrooms

139 rooms (55 connecting rooms)
57 single-bed rooms (18 sqm)
60 twin-bed rooms (21-24 sqm)
20 deluxe twin-bed rooms (29-32 sqm)
1 Japanese-style family room (37 sqm)
1 accessible room (21 sqm)

Facilities

158-seat restaurant / Wi-Fi, all area / Self-service coin-operated laundry and dryer /Storage space under bed / Universal power outlet / Parking area (We have largeand medium-size buses for airport transfer and sightseeing.)

Soft Opening

January 16, 2017 (plan)

Hotel

KARAKSA HOTELS Corporation

ManagementCompany
Hotel Operator

KARAKSA HOTELS KANSAI Corporation

Contact us for further information
XYMAX Corporation / Overseas Business Department / Phone +81-3-5544-6840