First Expansion into Kyoto and Opening of a Japanese and French Restaurant at Kodaiji

「Meanwhile, Restaurant Hiramatsu Kodaiji and Kodaiji Jyu-an, which the Company began operating in February 2021, were opened in March 2020. Through business coordination with THE HIRAMATSU Kyoto, the hotel opened in March 2020, the Company is developing new offerings, including accommodation packages with dining at Kodaiji and wedding packages with accommodation.」

「A settlement was reached on 1 March 2021, amicably resolving all disputes between the parties.」

「Because the transfer had no substance in terms of consideration and could not be recognized as a valid sale transaction for accounting purposes, the Company determined that it would be inappropriate to account for it as a sale. Instead, the assets were recognized on the balance sheet as the Company’s property, plant and equipment, with impairment losses to be recognized as necessary.」

「Because the 2 restaurants opened in September 2017 had taken time to become profitable and were expected to require considerable additional time, they were transferred effective 1 January 2019 to Hiramatsu Institute Co., Ltd., which would undertake human-resources development together with the Company, in light of their long-term economic rationality and the importance of developing human resources.」

「At a Board of Directors meeting held on 19 December 2018, the Company resolved to transfer Restaurant Hiramatsu Kodaiji and Kodaiji Jyu-an to Hiramatsu Institute Co., Ltd., a related party, and entered into an agreement dated 30 December 2018. As the restaurants, which opened in September 2017, had taken time to become profitable and were expected to require considerable additional time, the Company reached this management decision in light of their long-term economic rationality and the importance of developing human resources.」

「The opening of Japanese and French restaurants in Kyoto, a highly popular destination for international travelers, has further accelerated the appeal of our offerings overseas, and we expect to expand our customer base, particularly among affluent international travelers.」

「In addition to the strong hotel business, the solid start made by Kodaiji Jyu-an, our first Japanese restaurant, and Restaurant Hiramatsu Kodaiji, both opened in Kyoto in September 2017, resulted in Group-wide revenue exceeding the same period of the previous year.」

「The 2 restaurants opened in September 2017 as the Company’s first entry into Kyoto, the ryotei restaurant Kodaiji Jyu-an, the first Japanese restaurant in our Group, and the French restaurant Restaurant Hiramatsu Kodaiji, have received praise from prominent figures in various fields, as well as local Kyoto customers, for their one-of-a-kind garden created through traditional craftsmanship passed down since the Meiji era, their sukiya-style architecture, and cuisine and service befitting their historical value, and have made a strong start.」

「As part of the development of new restaurants, in the next fiscal year we will open the ryotei restaurant Kodaiji Jyu-an, our first entry into Kyoto and our first Japanese restaurant, as well as the French restaurant Restaurant Hiramatsu Kodaiji, scheduled to open in September 2017.」