Japan Airlines Corp, Asia's largest carrier by sales, has sold three hotels in Okinawa to Lone Star Funds, a Dallas-based buyout firm, said people who have direct knowledge of the sale.

Japan Airlines Corp, Asia's largest carrier by sales, has sold three hotels in Okinawa to Lone Star Funds, a Dallas-based buyout firm, said people who have direct knowledge of the sale.

Japan Airlines sold Hotel Nikko Naha Grandcastle, Hotel Nikko Yaeyama and JAL Private Resort Okuma in Okinawa for at least $128 million to Lone Star, the people said. This is Lone Star's seventh hotel acquisition in Okinawa.

The unprofitable Tokyo-based airline aims to cut its liabilities 30% to $8.6 billion over four years to help regain an investment-grade credit rating. Overseas investors, including George Soros, Goldman Sachs Group Inc and Lone Star, have acquired Japanese resorts, betting they can improve management and returns.

"JAL is selling everything it can in order to return to profit," said Mana Nakazora, chief credit analyst at JPMorgan Securities Japan Co. "It's the right strategy."

Japan Airlines already sold two hotels to Goldman Sachs last year and aims to sell a 30% stake in Jalux Inc, an airport store operator, to Sojitz Corp, a Japanese trading company, by March 31.

Mizuho Securities Co, the investment banking unit of Mizuho Financial Group Inc, advised the airline on selling the properties, the people said.

To read more about this story, go to Bloomberg.com

Next article » Affiliated Computer Founder, Cerberus Bid To Buy Firm

Previous article « SIG Backs Rank Bid Valuing Company at $2.3B