Expanding Revenue by Improving Customer Satisfaction and BAY HOTEL Brand Value

「As a result, during the current interim consolidated accounting period, hotel business revenue was ¥1,199 million, up 8.4% from the same period a year earlier, and segment profit was ¥87 million, up 74.7%.」

「The outdoor resort facility, which opened in March 2025, initially operated at high capacity utilization. However, bookings stagnated from June onward, and subsequent improvement measures had only a limited effect, resulting in sales and profit falling substantially below plan.」

「However, bookings slowed from June onward, and both the number of guests and ADR fell significantly below the initial plan.」

「In addition to the rapid expensing of business and capital investments resulting from the opening of new facilities and the resumption of operations at existing facilities, demand forecasts and sales controls failed to adequately capture changes in market conditions and trends surrounding domestic lodging demand and inbound tourism. As a result, guest numbers and ADR (the average room rate per room sold) fell significantly short of plan.」

「We aim to establish the Retreat Stay business, which provides each customer with a relaxed “extraordinary time and place” to reconnect with themselves and reset both body and mind.」

「In addition to pursuing an increase in the number of guests per room by designing plans suited to demand from multiple guests, introducing sales controls that allow reservations for consecutive nights, and strengthening approaches to families and group travelers, we worked to maintain room rates at appropriate levels by adjusting sales prices based on demand forecasts. As a result, profitability improved further. For the six months ended the second quarter of the current consolidated fiscal year, hotel business revenue was ¥978 million, up 21.7% year on year, and segment profit was ¥266 million, up 30.9% year on year.」

「In addition to actively pursuing both individual and group accommodation demand, we strengthened sales controls. As a result, facilities in Chiba Prefecture and Tokyo both maintained high occupancy day after day, particularly on weekends, and revenue increased substantially.」

「In addition to pursuing an increase in the number of guests per room by designing plans suited to demand from multiple guests, introducing sales controls that allow reservations for consecutive nights, and strengthening approaches to families and group travelers, we worked to maintain room rates at appropriate levels by adjusting sales prices based on demand forecasts. As a result, profitability improved further. For the nine months ended the third quarter of the current consolidated fiscal year, hotel business revenue was ¥1,264 million, up 103.8% year on year, and segment profit was ¥346 million, compared with a segment loss of ¥78 million in the same period of the previous year.」

「At BAY HOTEL Tokyo Hamamatsucho, which we operate in Minato-ku, Tokyo, we fully renovated the Unit Floor and strengthened its appeal to families, including those with small children, and domestic and overseas group travelers. Although accommodation prices were high at ¥30,000 or more per room, occupancy rates remained stable above 70% after sales began in late March. Use by the targeted customer segments expanded, leading to further improvements in profitability.」

「Although accommodation prices were set at the high level of ¥30,000 or more per room, occupancy rates remained above 70%. By attracting the targeted customer segments, profitability improved. As a result, for the three months ended the first quarter of the current consolidated fiscal year, hotel business revenue was ¥428 million, up 171.0% year on year, and segment profit was ¥126 million, compared with a segment loss of ¥52 million in the same period of the previous year.」

「At BAY HOTEL Tokyo Hamamatsucho, which we operate in Minato-ku, Tokyo, we carried out a full renovation of the Unit Floor and began selling private rooms in March 2023 that allow guests to stay comfortably and relax. The rooms are aimed mainly at groups of women from Generation Z and families with small children, as we work to provide services that meet changing needs.」

「Since mid-October, both occupancy rates and room rates have increased substantially, and earnings improved, including by securing segment profit for the month of November. As a result, for the nine months ended the third quarter of the current consolidated fiscal year, hotel business revenue was ¥620 million, compared with ¥397 million in the same period of the previous year, and the segment loss was ¥78 million, compared with a segment loss of ¥223 million.」

「As a result, for the six months ended the second quarter of the current consolidated fiscal year, hotel business revenue was ¥346 million, compared with ¥257 million in the same period of the previous year, and the segment loss was ¥99 million, compared with a segment loss of ¥155 million.」

「Revenue increased substantially as we actively pursued group demand, including demand for sporting events and training programmes. As a result, for the three months ended the first quarter of the current consolidated fiscal year, hotel business revenue was ¥158 million, compared with ¥67 million in the same period of the previous year, and the segment loss was ¥52 million, compared with a segment loss of ¥105 million.」

「At our unit hotels, we will more clearly define the customer segments we aim to attract, develop various plans for those segments and seek to maximize added value. In this way, we aim to move away from price competition and build a more profitable business model.」

「As a result, for the nine months ended the third quarter of the current consolidated fiscal year, hotel business revenue was ¥397 million, up 131.1% year on year, and the segment loss was ¥223 million, compared with a segment loss of ¥328 million in the same period of the previous year.」

「Although the Tokyo Olympics were held without spectators, revenue and earnings improved as one entire building was used as accommodation for companies involved in operations, and group bookings were secured during sporting events held in the latter half of the summer vacation. As a result, for the six months ended the second quarter of the current consolidated fiscal year, hotel business revenue was ¥257 million, up 183.6% year on year, and the segment loss was ¥155 million, compared with a segment loss of ¥185 million in the same period of the previous year.」

「As a result, for the three months ended the first quarter of the current consolidated fiscal year, hotel business revenue was ¥67 million, up 30.5% year on year, and the segment loss was ¥105 million, compared with a segment loss of ¥119 million in the same period of the previous year.」

「As a result, for the nine months ended the third quarter of the current consolidated fiscal year, hotel business revenue was ¥172 million, down 86.6% year on year, and the segment loss was ¥328 million, compared with segment profit of ¥140 million in the same period of the previous year.」

「As a result, for the six months ended the second quarter of the current consolidated fiscal year, hotel business revenue was ¥90 million, down 89.5% year on year, and the segment loss was ¥185 million, compared with segment profit of ¥101 million in the same period of the previous year.」

「As a result, for the consolidated fiscal year, hotel business revenue was ¥1,639 million, down 2.4% year on year, and segment profit was ¥125 million, down 15.6% year on year.」

「As a result, for the nine months ended the third quarter of the current consolidated fiscal year, hotel business revenue was ¥1,284 million, down 0.1% year on year, and segment profit was ¥140 million, down 0.9% year on year.」

「At our unit hotels, we seek to provide affordable and comfortable accommodation services in central Tokyo. In addition to responding to diversifying payment needs by introducing payment services using smartphone apps, we have launched a prepayment service for guests booking through our website. We are also working to improve profitability by increasing the proportion of direct sales. As a result, for the six months ended the second quarter of the current consolidated fiscal year, hotel business revenue was ¥861 million, up 3.4% year on year, and segment profit was ¥101 million, up 11.2% year on year.」

「At our unit hotels, we have strengthened partnerships with overseas OTA websites to attract inbound tourists. We are also responding to diversifying payment needs, including by launching a prepayment service for guests booking accommodation through our website. Many domestic and overseas guests use our hotels, particularly during the cherry blossom season and long holidays.」

「We have actively developed collaboration initiatives with games, anime and stage productions. These initiatives have attracted considerable attention, including coverage in various media and at exhibitions. We will continue communicating the appeal of experiences beyond accommodation to further differentiate our facilities from those of competitors. As a result, for the consolidated fiscal year, hotel business revenue was ¥1,680 million, up 19.5% year on year, and segment profit was ¥148 million, compared with a segment loss of ¥15 million in the previous fiscal year.」

「As 2 to 3 years have passed since opening, the number of repeat customers has increased. In addition, since the previous fiscal year, we have strengthened partnerships with overseas OTA websites to further raise awareness and attract inbound tourists. As a result, occupancy rates have grown steadily along with the rising proportion of foreign guests. As a result, for the nine months ended the third quarter of the current consolidated fiscal year, hotel business revenue was ¥1,284 million, up 20.8% year on year, and segment profit was ¥141 million, compared with ¥1 million in the same period of the previous year.」

「As a result, for the six months ended the second quarter of the current consolidated fiscal year, hotel business revenue was ¥832 million, up 18.2% year on year, and segment profit was ¥91 million, compared with ¥0 million in the same period of the previous year.」

「In addition to the increase in repeat customers, we strengthened efforts to attract inbound tourists by expanding distribution through overseas reservation websites. This increased the number of overseas guests, particularly during the cherry blossom season. We also continued planning accommodation packages in collaboration with various game content offerings, some of which sold out on the day of release. Revenue and occupancy rates continued to grow, and earnings steadily improved. As a result, for the first quarter of the current consolidated fiscal year, hotel business revenue was ¥408 million, up 7.2% year on year, and segment profit was ¥49 million, up 133.0% year on year.」

「As the number of facilities has expanded, awareness has also risen and the number of repeat customers has increased. In addition, we have worked to expand our distribution channels by actively advertising to foreign travelers and entering into agreements with overseas reservation websites that are popular abroad. This has increased the number of guests, particularly from Southeast Asia. Revenue and occupancy rates have risen, and earnings are steadily improving.」

「More than 1 year after opening, the number of repeat customers has increased as awareness has grown. In addition, active advertising aimed at foreign travelers since the end of the previous fiscal year has increased the number of guests, particularly from East Asia. We also planned accommodation packages linked to events featuring other companies' media content, some of which sold out on the day of release. Along with higher revenue and occupancy rates, earnings are improving, and we will continue working to expand segment profit by strengthening marketing activities. As a result, for the six months ended the second quarter of the current consolidated fiscal year, hotel business revenue was ¥704 million, up 29.7% year on year, and segment profit was ¥0 million, an improvement from the segment loss of ¥63 million in the same period of the previous year.」

「Since the end of the previous fiscal year, we have actively advertised through social media and video-sharing services aimed at foreign travelers, as well as tourism websites for foreign travelers. As a result, revenue and occupancy rates have continued to show substantial year-on-year growth, and we will continue working to improve segment earnings by strengthening marketing activities. As a result, for the first quarter of the current consolidated fiscal year, hotel business revenue was ¥380 million, up 41.0% year on year, and segment profit was ¥21 million, compared with a segment loss of ¥28 million in the same period of the previous year.」

「Through active advertising on social media and video-sharing services aimed at foreign travelers, as well as tourism websites for foreign travelers, both revenue and occupancy rates have increased substantially year on year since January. We will continue strengthening these initiatives to achieve an early return to profitability.」

「In prime central locations where accommodation costs remain high, we use limited space to the fullest to provide accommodation at reasonable prices. This has earned support from individual travelers seeking low prices and business users. In addition, each hotel has a women-only floor, which has been well received by female guests seeking safe and secure accommodation.」

「Because the hotel is conveniently accessible, with a direct train journey of approximately 20 minutes from Haneda Airport, and is located next to office and restaurant districts, we are considering plans and services that will enable more customers to use the facility.」

「Going forward, we will pursue new customers by enhancing our accommodation plans and services, while further improving customer satisfaction. By increasing the value of the BAY HOTEL brand, we will work to expand earnings by raising occupancy rates and room rates.」