Worth reading
64In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Improvement
Direction inferred from the company’s description.Scale
515
¥100 million (versus actual results for the fiscal year ended March 2026)Wording
Conditional
How definitive the wording is.Items stated in the management plan
FormulatedNet Sales+106.2%
基準 485Target1,000Hundreds of millions of yen
Operating profit+88.7%
基準 53Target100100 million (before amortization of goodwill)
ROE-5.2pt
基準 15.2Target10%
Each line is the climb from the baseline the document states to the target it sets. The slope is scaled against the largest climb in this document. For metrics expressed as percentages, differences are shown in percentage points (pt).
What happened to the previous planRevenue of ¥49,000 million, operating profit of ¥5,000 million and net income of ¥4,000 million (medium-term management plan targets for the fiscal year ending March 2027) → Revenue of ¥48,469 million, operating profit of ¥5,346 million and net income of ¥4,043 million (actual results for the fiscal year ended March 2026)（Revenue: 99%; operating profit: 107%; net income: 101% (achievement rate)）-1.1%Calculated from the two disclosed figures
Investment amount by sectorField Co-investment (same-boat investment) / Amount Approximately up to ¥1 billion, Field Standalone investment / Amount Approximately up to ¥3 billion, Field M&A / Amount Varies depending on the size of each transaction
Statements about the use of capital
Payout ratio / DOE policyDividend payout ratio of at least 30% for the fiscal year ending March 2031 (the final year). The actual dividend payout ratio for the fiscal year ended March 2026 was 25.4% (42.7% excluding the impact of income taxes adjustment). DOE: not disclosed.The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Key initiatives
01Changes in the new development environment and the Company's strategy
02Development of diverse brands
03Shift in target segments
04Priority areas for improving profitability
05Marketing Strategy
06AI utilization strategy
07Building the human resources base
08Strategy for the hotel investment business
09Allocate operating cash flow from the hotel operations business to investment funding for the hotel investment business
10Select joint investment and standalone investment opportunities with the Star Asia Group carefully
11Actively consider inorganic growth through M&A of peer operators and other companies
Plan assumptionsRevPAR is assumed to grow at an annual rate of 3% based on a stable supply-demand environment., Operating expenses are assumed to increase by approximately 3% annually, reflecting recent inflation., The Company assumes that it will operate 150 properties for the full fiscal year ending March 2031., The timing of earnings realization for new-build projects may vary depending on their opening dates., Projects currently under investment are assumed to be held continuously., Investment in new hotel assets is assumed., M&A is not included in the assumptions., Overnight stays by Japanese guests are assumed to remain flat from the 2025 results, while the number of foreign visitors to Japan is assumed to reach 60 million in 2030.
Non-financial targetsIndicator name Hotels under management / Target value 150 hotels / Timing Fiscal year ending March 2031, Indicator name Guest rooms under management / Target value 20,000 rooms / Timing Fiscal year ending March 2031, Indicator name KOKO HOTELS brand awareness / Target value 50% / Timing Not disclosed, Indicator name Number of loyalty program members / Target value 1 million members / Timing Not disclosed, Indicator name Direct booking ratio (rooms sold) / Target value 30% / Timing Not disclosed
Size of the Target MarketThe number of foreign visitors to Japan was approximately 60 million in 2025, and the government's target is 60 million in 2030. The number of repeat foreign visitors to Japan was 15,295 thousand in 2023, 21,226 thousand in 2024 and 26,330 thousand in 2025. The inbound ratio was 27% in 2025. Sources: Japan Tourism Agency, Accommodation Travel Statistics Survey; Japan National Tourism Organization, Visitor Arrivals Statistics and Visitor Arrivals Statistics Tables; and Japan Tourism Agency, Inbound Consumption Trend Survey.
Risks identified by the company
Changes in the new development environment due to higher construction costs and land prices
Risk of fluctuations in the hotel market
The timing of earnings realization for new-build projects may vary depending on their opening dates
Investment amounts for M&A transactions may be relatively large depending on the transaction
There are fewer M&A opportunities than hotel investment opportunities
Reason for revision or withdrawal
Following the business integration with 株式会社ミナシア in December 2024, the Company significantly expanded its business base and is now expected to achieve the targets set out in the original plan substantially ahead of schedule. The Company broadly achieved the targets set out in the revised medium-term management plan in terms of results for the fiscal year ended March 2026 and other factors. In particular, new hotel openings progressed at a faster-than-expected pace, resulting in a substantial pipeline of hotels scheduled to open from the fiscal year ending March 2027 onward. The business environment has also changed.
| Item | Details |
|---|---|
| Plan name | Medium-Term Management Plan 2030 |
| Plan period | Fiscal years 2026–2030 |
| Progress against the plan | Formulated |
| Sales Target | 485 Hundreds of millions of yen → 1,000 Hundreds of millions of yen（+106.2%） |
| Operating profit target | ¥53 100 million (before amortization of goodwill) → ¥100 100 million (before amortization of goodwill)（+88.7%） |
| ROE target | 15.2% (9.1% excluding the impact of income taxes adjustment) → 10% or higher |
| Payout ratio / DOE policy | Dividend payout ratio of at least 30% for the fiscal year ending March 2031 (the final year). The actual dividend payout ratio for the fiscal year ended March 2026 was 25.4% (42.7% excluding the impact of income taxes adjustment). DOE: not disclosed. |
| Investment amount by sector | Field Co-investment (same-boat investment) / Amount Approximately up to ¥1 billion, Field Standalone investment / Amount Approximately up to ¥3 billion, Field M&A / Amount Varies depending on the size of each transaction |
| Non-financial targets | Indicator name Hotels under management / Target value 150 hotels / Timing Fiscal year ending March 2031, Indicator name Guest rooms under management / Target value 20,000 rooms / Timing Fiscal year ending March 2031, Indicator name KOKO HOTELS brand awareness / Target value 50% / Timing Not disclosed, Indicator name Number of loyalty program members / Target value 1 million members / Timing Not disclosed, Indicator name Direct booking ratio (rooms sold) / Target value 30% / Timing Not disclosed |
| Plan assumptions | RevPAR is assumed to grow at an annual rate of 3% based on a stable supply-demand environment., Operating expenses are assumed to increase by approximately 3% annually, reflecting recent inflation., The Company assumes that it will operate 150 properties for the full fiscal year ending March 2031., The timing of earnings realization for new-build projects may vary depending on their opening dates., Projects currently under investment are assumed to be held continuously., Investment in new hotel assets is assumed., M&A is not included in the assumptions., Overnight stays by Japanese guests are assumed to remain flat from the 2025 results, while the number of foreign visitors to Japan is assumed to reach 60 million in 2030. |
| Key initiatives | Changes in the new development environment and the Company's strategy, Development of diverse brands, Shift in target segments, Priority areas for improving profitability, Marketing Strategy, AI utilization strategy, Building the human resources base, Strategy for the hotel investment business, Allocate operating cash flow from the hotel operations business to investment funding for the hotel investment business, Select joint investment and standalone investment opportunities with the Star Asia Group carefully, Actively consider inorganic growth through M&A of peer operators and other companies |
| Results under the previous plan | Revenue of ¥49,000 million, operating profit of ¥5,000 million and net income of ¥4,000 million (medium-term management plan targets for the fiscal year ending March 2027) → Revenue of ¥48,469 million, operating profit of ¥5,346 million and net income of ¥4,043 million (actual results for the fiscal year ended March 2026)（Revenue: 99%; operating profit: 107%; net income: 101% (achievement rate)） |
| Reason for revision or withdrawal | Following the business integration with 株式会社ミナシア in December 2024, the Company significantly expanded its business base and is now expected to achieve the targets set out in the original plan substantially ahead of schedule. The Company broadly achieved the targets set out in the revised medium-term management plan in terms of results for the fiscal year ended March 2026 and other factors. In particular, new hotel openings progressed at a faster-than-expected pace, resulting in a substantial pipeline of hotels scheduled to open from the fiscal year ending March 2027 onward. The business environment has also changed. |
| Size of the Target Market | The number of foreign visitors to Japan was approximately 60 million in 2025, and the government's target is 60 million in 2030. The number of repeat foreign visitors to Japan was 15,295 thousand in 2023, 21,226 thousand in 2024 and 26,330 thousand in 2025. The inbound ratio was 27% in 2025. Sources: Japan Tourism Agency, Accommodation Travel Statistics Survey; Japan National Tourism Organization, Visitor Arrivals Statistics and Visitor Arrivals Statistics Tables; and Japan Tourism Agency, Inbound Consumption Trend Survey. |
| Risks identified | Changes in the new development environment due to higher construction costs and land prices, Risk of fluctuations in the hotel market, The timing of earnings realization for new-build projects may vary depending on their opening dates, Investment amounts for M&A transactions may be relatively large depending on the transaction, There are fewer M&A opportunities than hotel investment opportunities |
| Date of board resolution | 13 May 2026 |
| Publication date | 13 May 2026 |
Items this document does not state (8)
Operating profit margin targetNet income targetROIC targetTreasury share acquisition policyCost of capitalSelf-assessment of PBR and share priceTotal investment planSegment target
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.Following the business integration with 株式会社ミナシア in December 2024, the Company significantly expanded its business base and is now expected to achieve the targets set out in the original plan substantially ahead of schedule. The Company also cited the fact that it broadly achieved the targets of the revised medium-term management plan in terms of results for the fiscal year ending March 2026 and other factors, that new hotel openings progressed at a faster-than-expected pace, resulting in a substantial pipeline of hotels scheduled to open from the fiscal year ending March 2027 onward, and changes in the business environment.
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