Expansion of the BAY HOTEL Network and Unit-Style Hotels

「At CVS・BAY HOTEL, operated in front of JR Ichikawa-Shiohama Station, renovation work on the new wing was carried out from May 2026 and completed by July, following the renovation of the main building in the previous consolidated fiscal year. Sales resumed thereafter.」

「In the hotel business, we opened the outdoor resort facility THE FARM Slow Mountain Narita in Narita, Chiba Prefecture, on 1 March 2025, and carried out renovation work around the same time at the existing CVS・BAY HOTEL Main Building, which opened in 2009,」

「Under our BAY HOTEL brand, we operate 4 business hotels, including 2 properties that we own, in Chiba Prefecture and central Tokyo. We also operate 2 unit hotels, mainly in central Tokyo, by leasing existing office buildings, converting them and using them as accommodation facilities.」

「We operate 2 unit hotels mainly in central Tokyo and expect that a certain further period will be required before demand fully recovers. However, following the launch of the National Travel Assistance programme, demand for accommodation in central Tokyo has recovered since mid-October, while business hotel room rates have risen sharply. As a result, demand has improved substantially for these facilities, which offer more affordable accommodation.」

「Our unit hotels, which are operated mainly in central Tokyo, have remained in a difficult situation as the prolonged COVID-19 pandemic has forced us to close 4 facilities. However, at Tokyo Ariake BAY HOTEL, operations resumed in late April in light of the increase in the number of events and visitors at a large nearby exhibition venue.」

「Our unit hotels, which are operated mainly in central Tokyo, have remained in a difficult situation as the prolonged COVID-19 pandemic has forced us to close 4 facilities,」

「Our unit hotels, which are operated mainly in central Tokyo, have remained in a difficult situation as the prolonged COVID-19 pandemic has forced us to close 3 facilities since the end of last year,」

「In the business hotel segment, we opened BAY HOTEL Tokyo Hamamatsucho at the end of July, marking our first entry into Tokyo under our business hotel brand. In mid-October, we also opened an extension building at CVS・BAY HOTEL, which we operate in front of JR Ichikawa-Shiohama Station. Our business hotels now have a total of 361 rooms.」

「At the end of July, the Company opened BAY HOTEL Tokyo Hamamatsucho, its first business hotel in Tokyo, and aims to attract a broad range of accommodation demand with this new type of hotel combining a business hotel and a unit-style hotel. The extension of CVS・BAY HOTEL operated near JR Ichikawa-Shiohama Station, for which preparations had been under way, is scheduled to open on 16 October.」

「The business hotel BAY HOTEL Tokyo Hamamatsucho, whose opening had been postponed, will open at the end of July. Preparations are also under way to open the extension of CVS・BAY HOTEL operated near JR Ichikawa-Shiohama Station from next month onward.」

「The unit-style hotel properties are currently closed, and the Company will reopen them sequentially while monitoring accommodation demand as the COVID-19 pandemic subsides, working to secure earnings. As the buildings for the 2 business hotels under preparation in Minato-ku, Tokyo, and Ichikawa, Chiba Prefecture, have been completed, the Company will proceed with preparations to open them from this summer onward.」

「Current liabilities decreased by ¥363 million, mainly because short-term borrowings increased by ¥1 billion to fund the extension of a business hotel under construction, while income taxes payable and other liabilities decreased by ¥1.424 billion.」

「Against this operating backdrop, the Group worked mainly to improve profitability in each business and prepare for the opening of 2 hotels in 2020, with the aim of further expanding earnings.」

「The expansion of partnerships with overseas booking sites helped attract more foreign travelers, and both occupancy rates and revenue grew substantially during the current fiscal year, improving profitability. The Company will continue strengthening marketing and intensify preparations for opening 2 properties scheduled for fiscal 2020 to improve profitability.」

「The Group's hotel business operates 3 business hotels in Ichikawa and Urayasu, Chiba Prefecture, and 6 unit-style hotels in Tokyo's 23 wards. BAY HOTEL Urayasu Ekimae, which opened near Urayasu Station on the Tozai subway line in June 2018, is equipped with kitchens and washing machines in every room to attract new customer segments such as groups of 3 or more and long-stay guests. Occupancy since opening has exceeded plan.」

「The unit-style hotel business operates 6 properties in Tokyo's 23 wards. By providing affordable and comfortable accommodation in central Tokyo, the hotels serve not only business travelers but also people staying for concerts and events. Women-only floors at all hotels have been well received by female customers who prioritize safety and security.」

「In June 2018, the Company opened BAY HOTEL Urayasu Ekimae in Urayasu, Chiba Prefecture, after converting a newly built residential property and equipping it with kitchens, with the aim of attracting new customer segments such as families and long-stay guests. Some opening preparation expenses, including real estate brokerage fees, were recorded in the first quarter.」

「Since starting operations in July 2015, the unit-style hotel business has expanded to 6 properties, mainly in central Tokyo. By providing affordable and comfortable accommodation in central Tokyo, the hotels serve not only business travelers but also customers traveling or attending events. Women-only floors at all hotels have been well received by women who prioritize safety and security.」

「Since starting operations in July 2015, the unit-style hotel business has expanded to 6 properties, mainly in central Tokyo. By providing affordable and comfortable accommodation in central Tokyo, where accommodation costs remain high, the hotels serve not only business travelers but also customers traveling or attending events. Women-only floors at all hotels have been well received by women seeking safe and secure accommodation, and many customers use the hotels for leisure during the summer vacation period.」

「Since starting operations in July 2015, the unit-style hotel business has expanded to 6 properties, mainly in central Tokyo. By providing accommodation services at reasonable prices, the business has been well received not only by price-conscious customers but also by women seeking safe and secure accommodation, supported by women-only floors at all hotels. The number of repeat customers has also increased steadily.」

「In the unit-style hotel business, which began operations in the previous fiscal year, the Company opened 2 new properties during the current fiscal year and currently operates 6 properties, mainly in central Tokyo.」

「In the unit-style hotel business, which began operations in the previous fiscal year, the Company opened its sixth property, Tamachi BAY HOTEL, in Minato-ku, Tokyo, in November 2016.」

「In the unit-style hotel business, which began operations in the previous fiscal year, the Company opened its first women-only accommodation facility, Akihabara BAY HOTEL, at the end of May this year and currently operates 5 properties, mainly in central Tokyo. In addition, Tamachi BAY HOTEL, the sixth unit-style hotel, will open in Minato-ku, Tokyo, in November this year.」

「In the unit-style hotel business, which began operations in the previous fiscal year, the Company opened its fifth property, Akihabara BAY HOTEL, in late May. This is the Company's first women-only accommodation facility, equipped with interiors and amenities designed with women in mind. The Company is also working to stimulate new demand by offering accommodation plans featuring content that takes advantage of Akihabara's location.」