Increasing Hotel Supply and Slowing Growth in Accommodation Demand

「At its business hotels, events with strong drawing power continued to be held at nearby large theme parks, commercial facilities, arena facilities and large-scale exhibition venues. This increased foot traffic around the facilities, and lodging demand, particularly for leisure, remained firm.」

「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.」

「From June 2025, travel restraint accelerated against the backdrop of higher prices and extreme heat, and accommodation demand during the usual peak season declined substantially. As the timing of the trend shifted, strategic activities to acquire customers ahead of competitors were also delayed, preventing an early resolution of the prolonged slowdown in bookings. The number of guests and ADR, the average room rate per room sold, consequently fell substantially below plan.」

「Supported by expanding inbound consumption and stronger leisure demand, particularly during holiday seasons, the Company strengthened its year-round sales management for both individual and group customers, helping secure stable occupancy.」

「Although domestic accommodation demand declined from April 2024 as domestic travelers remained weak despite support from solid inbound consumption, it expanded sharply again from July with the start of the full summer vacation season, helped by the positive effects of proactively holding events and the resulting increase in the flow of people.」

「Inbound consumption continued to expand against the backdrop of the rapid depreciation of the yen and drove the tourism industry as a whole. As a result, domestic accommodation demand remained solid even after April, when it was said to have declined due to sluggish personal consumption.」

「In October 2023, inbound visitor numbers exceeded the October 2019 level for the first time since the pandemic, highlighting a rapid recovery in inbound demand. Growth in tourism-related industries such as leisure and accommodation helped support the economy.」

「Domestic accommodation demand continues to expand.」

「Since autumn last year, various COVID-19-related restrictions have been eased and the normalization of economic activity has accelerated. In addition to the recovery in the flow of people for business trips and leisure to pre-pandemic levels, the rapid recovery in inbound demand and the extension of the National Travel Support program have stimulated travel demand, and domestic accommodation demand continues to expand.」

「In October, accommodation demand expanded sharply, driven by the removal of the cap on entry restrictions and the National Travel Support program, resulting in substantial improvements in both occupancy rates and room rates.」

「In October, accommodation demand expanded sharply, driven by the removal of the cap on entry restrictions and the National Travel Support program, resulting in substantial improvements in both occupancy rates and room rates.」

「Although some easing of entry restrictions was seen, inbound tourists remained substantially below pre-pandemic levels, causing room rates to remain under pressure, particularly on weekdays. In addition, following the renewed increase in new COVID-19 cases from early July, the planned National Travel Support program was postponed from mid-July, although no movement restrictions were imposed, and a full-scale improvement in hotel profitability was not achieved.」

「Domestic accommodation demand continued to expand after mid-March, when measures to prevent the spread of disease were lifted. At the business hotels operated in Chiba Prefecture, leisure-related guest numbers improved due in part to increased visitors to nearby theme parks, and occupancy rates rose substantially, particularly during the spring vacation period and Golden Week. Revenue also grew substantially as the Company actively pursued group demand from sports events and training programs. However, improvement in room rates remained limited, with weekdays continuing to be challenging.」

「In the Group's hotel business, accommodation demand declined sharply again after late December as cases of the Omicron variant surged and measures to prevent the spread of disease were implemented in January 2022 in the Tokyo metropolitan area and elsewhere. As a result, room rates in Chiba Prefecture and central Tokyo remained sluggish, narrowing the advantage of offering accommodation at reasonable prices, which had previously been a strength of the business.」

「In the hotel industry, repeated declarations of a state of emergency in response to the spread of COVID-19 variants led to people refraining from travel and business trips involving overnight stays. In addition, the Tokyo Olympics were held without spectators, keeping accommodation demand in central Tokyo sluggish and leaving the outlook uncertain.」

「Accommodation demand was on a recovery trend from March through mid-April, when the number of new COVID-19 cases was relatively stable. However, amid the spread of variants and the issuance of a third state of emergency in late April, people began refraining from travel and business trips involving overnight stays, leaving the outlook uncertain.」

「Domestic accommodation demand improved substantially from October onward, driven in part by measures to stimulate demand through the Go To Travel campaign. However, as new COVID-19 cases in Japan began to rise again, the campaign was temporarily suspended from mid-December, and a state of emergency was reissued for the Tokyo metropolitan area in January, leaving the outlook uncertain.」

「The number of new COVID-19 cases in Japan began to rise again, and conditions remained difficult, with total domestic guest nights continuing at approximately 50% of the prior-year level.」

「Domestic accommodation demand declined sharply as the spread of COVID-19 led to event cancellations and the government issued a state of emergency, prompting requests to refrain from nonessential, nonurgent outings. In addition, restrictions on entry from almost all countries and regions from April caused foreign tourists to fall sharply, and many hotels were forced to close temporarily, resulting in an unprecedentedly severe environment.」

「Since late January 2020, the market environment has remained severe as the spread of COVID-19 has led to a sharp decline in foreign tourists, while domestic travelers have also fallen substantially due in part to calls to refrain from holding large-scale events. A certain period is expected to be required for accommodation demand to recover.」

「In the hotel industry, which the Group is currently focusing on, accommodation demand has shown signs of slowing, as the number of inbound tourists, which had continued to increase, declined for 2 consecutive months amid instability in international affairs, including Japan–South Korea relations. Meanwhile, with the Tokyo Olympics approaching, new hotels continued to open, particularly in urban areas, further intensifying competition as room supply increased.」

「In the hotel industry, which the Group is currently focusing on, accommodation demand across Japan continues to expand due in part to the increase in inbound visitors. At the same time, new hotels continue to open, particularly in urban areas, and competition has intensified further as the number of rooms supplied has increased faster than demand. Concerns have also arisen over the impact on the tourism industry of instability in international affairs, including Japan–South Korea relations.」

「While accommodation demand across Japan continues to expand due in part to the increase in inbound visitors, new hotels continue to open, particularly in urban areas, raising concerns that intensifying competition will result from room supply increasing faster than demand.」

「However, competing hotel operators expecting continued growth in inbound visitors and the staging of the Tokyo Olympics have successively opened hotels in central Tokyo and areas such as Maihama and Shin-Urayasu. If this investment continues and the number of rooms supplied increases substantially more than demand, room rates and occupancy rates are expected to decline.」

「In the hotel industry, the number of foreign visitors to Japan, which had continued to grow significantly, temporarily declined due to the impact of natural disasters in the Kansai region and Hokkaido. However, because the impact was limited in both scope and duration, domestic lodging demand continued to expand overall, and hotel occupancy rates and average room rates remained firm, particularly in major cities. Nevertheless, a succession of new hotel openings is planned ahead of the Tokyo Olympics, raising concerns about intensifying competition as the number of available rooms increases faster than demand.」

「In the hotel industry, domestic lodging demand continues to expand, with the number of foreign visitors to Japan repeatedly reaching record highs, while the implementation of the Private Lodging Business Act has helped eliminate illegal private lodging businesses. As a result, hotel occupancy rates and average room rates have remained firm, particularly in major cities. However, a succession of new hotel openings is planned ahead of the Tokyo Olympics, raising concerns about intensifying competition as the number of available rooms increases faster than demand.」

「However, the number of available rooms has increased faster than demand as new hotels have opened in succession, particularly in central Tokyo, causing hotel occupancy rates and average room rates to struggle. Developments in private lodging businesses also need to be monitored closely.」

「The number of available hotel rooms has increased faster than demand as new hotels have opened in succession, particularly in central Tokyo, and private lodging businesses have emerged. As a result, hotel occupancy rates and average room rates are showing signs of weakness, and developments need to be monitored closely.」

「Although visitor numbers at nearby theme parks have remained high, the hotel market struggled during the busy summer season because the number of available rooms in central Tokyo increased faster than demand as new hotels opened in succession. From the second half of the fiscal year, the company began expanding its sales channels by strengthening efforts to attract group customers in addition to its previous focus on individual customers.」

「However, in addition to changes in the competitive environment resulting from a succession of new hotel openings, particularly in central Tokyo, and the emergence of private lodging businesses, hotel occupancy rates and average room rates in central Tokyo are showing signs of weakness, partly due to the diversification of destinations for visitors to Japan. Developments need to be monitored closely.」

「Hotel occupancy rates and average room rates in central Tokyo are showing signs of weakness, and developments need to be monitored closely.」

「However, in addition to the increase in available rooms resulting from a succession of new hotel openings, particularly in central Tokyo, the appreciation of the yen from summer through autumn 2016 also contributed to signs of a gradual decline in hotel occupancy rates in central Tokyo.」

「In addition to the increase in available rooms resulting from a succession of new hotel openings, particularly in central Tokyo, and soaring room rates, occupancy rates at hotels in central Tokyo are showing signs of a gradual decline, partly due to foreign tourists shifting to regional destinations.」

「In addition to the increase in available hotel rooms resulting from a succession of new hotel openings, particularly in central Tokyo, lodging demand is no longer growing as strongly as before due in part to higher room rates. Hotel occupancy rates in central Tokyo have remained flat, and developments require close monitoring.」