All Nippon Airways Co, Japan's largest domestic carrier, plans to sell hotels with a book value of more than 110 billion yen (US$954 million) to reduce debt and focus on its main business, Bloomberg News reported.

The sale is part of the airline's strategy of reducing real-estate assets, the company said in a faxed statement. The company has hired Nomura Holdings Inc and Jones Lang LaSalle to advise on selling 13 hotels, which are located from Hokkaido to Okinawa, said four people familiar with the negotiations.

All Nippon has cut its long-term borrowings by 16 percent over the past two years, bringing its debt rating to within one level of investment grade. Japan Airlines Corp also plans to sell four hotels to help meet its goal of returning to profit this fiscal year, according to people familiar with the negotiations.

"The clearance of balance sheets is a must for survival as Japanese companies are still in convalescence," said Mana Nakazora, chief credit analyst at JPMorgan Securities Japan Co in Tokyo. "Such a move will contribute to raising their credibility and attracting overseas investors."

The Nihon Keizai newspaper reported on Friday that All Nippon was seeking bidders for the hotels and would likely receive more than 100 billion yen for the properties.

All Nippon's shares have fallen 11.3 percent so far this year compared with a 33 percent decline for Japan Airlines.

"We cannot say anything about the report at this moment," said ANA spokeswoman Nana Kon. Nomura's and Jones Lang LaSalle's officials were not available for comment.

"Japan Airlines should be focusing on its main business," said Makoto Haga, who helps manage 40 billion yen at STB Asset Management Co in Tokyo. "This is a good time to be selling as real estate prices are rising."

Land prices in Japan's three biggest metropolitan areas Tokyo, Osaka and Nagoya rose this year for the first time in 16 years, according to a Land Ministry report in September.