Komori

Financial Results Briefing Materials for the Second Quarter of the Fiscal Year Ending March 2027

Results presentationFirst half, FY ending Mar 2027Published 2026-11-13 16:00

In the first half, revenue increased due to the opening of new hotels, while operating income declined because of lower revenue in the Kinki region and higher operating costs. The full-year revenue, operating income and dividend forecasts were left unchanged.

Contents of this document

Financial results presentationFY2027/3 Q214 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥24,823 million+8.0%
Operating profit¥1,423 million -26.7%financial accounting basis
Ordinary income¥861 million -36.4%financial accounting basis
Net income¥484 million -55.8%interim net income attributable to owners of the parent
Gross Profit Margin95.9
Operating profit margin5.7
Selling, general and administrative expenses¥22,370 million
Results for the three months of the current quarterThe graph shows standalone second-quarter results for the fiscal year ending March 2027: revenue of ¥12,737 million and operating income of ¥1,101 million, before amortization of goodwill.
Full-year earnings forecast
Net Sales
¥54,500 million
Operating profit
¥5,504 millions before amortization of goodwill
Ordinary income
¥4,304 millions before amortization of goodwill
Adjusted net income
¥4,253 millions before amortization of goodwill
Annual Dividend
¥10
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales45.5%
Operating profit37.7%
Ordinary income35.2%
Adjusted net income33.7%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Contracts secured for new openings were 5 times higher than in the same period of the previous year, indicating steady progress toward achieving the medium-term plan targets.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Net Sales
Newly opened hotels (10 hotels)+¥1.70 billion
Existing domestic hotels under operation+¥140 million
Areas outside the Kinki region+¥720 million
Kinki region-¥580 million
Other-¥10 million
Operating profit
Newly opened hotels (10 hotels)+¥100 million
Existing domestic hotels under operation-¥490 million
Areas outside the Kinki region-¥90 million
Kinki region-¥400 million
Other-¥120 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Inbound visitors from countries other than China are expected to continue increasing, although the impact of the decline in Chinese visitors is expected to persist.
  • The reversal in demand following the Expo is expected to run its course after mid-October.
  • The impact of the Asian Games in the Tokai region and reconstruction demand in Kumamoto are expected to be positive factors.
  • The 3-month TIBOR remained within the range of the base rate assumed at the beginning of the period.
New initiatives
  • Launch of the master brand “Polaris Hotels & Resorts”
  • Launch of the membership program “irodori pass”
  • Opening of 2 KOKO HOTEL properties
  • Decision to acquire a hotel property in Kobe
  • Decision to open the second property of the “kokonoyu” hot-spring hotel brand in Gotemba, Fuji
Key KPIsA metric the company considers important as a management benchmark.
  • Inbound visitors from countries other than China27,395 thousand people
    Year on year against the same period last year+13.0%
  • Number of contracts secured20 postings
    Year on year against the same period last year5x
  • Hotels under management134 Hotels
  • Guest rooms under management18,841 Rooms
  • Occupancy rate (total)89.5 %
    Year on year against the same period last year-0.4pt
  • ADR (total)¥12,631
    Year on year against the same period last year-0.1%
  • RevPAR (total)¥11,307
    Year on year against the same period last year-0.6%
  • Inbound ratio (total)48.3 %
    Year on year against the same period last year-2.7pt
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Room occupancy rate89.5%, down 0.4 percentage points year on year
ADR¥12,631, down 0.1% year on year
RevPAR¥11,307, down 0.6% year on year
Segment results
Newly opened domestic hotels
Net Sales
¥2,186 million+353.0%
Operating profit
¥130 million+350.0%
Existing domestic hotels under operation
Net Sales
¥20,503 million+0.7%
Operating profit
¥2,730 million-15.3%
Other
Net Sales
¥2,134 million-0.6%
Operating profit
¥-780 million
Medium-term management plan targets
Target fiscal yearFiscal year ending March 2031
Hotels under management150 hotels
Guest rooms under management20,000 rooms
Net Sales¥100 billion
Operating profit¥10 billion (before amortization of goodwill)
Payout ratio50% or more
ROEAt least 10%
Comparison with actual results134 managed hotels and 18,841 managed rooms. Achievement rates: 89% for the number of hotels and 94% for the number of rooms
Financial targets
ROE
Medium-term plan targetAt least 10%
Actual results for the fiscal year ending March 202613.4% (based on adjusted net income)
Equity ratio46.5% for the fiscal year ended March 2026
Market Size / Share
Ranked approximately 7th among 13 companies in a ranking of operators of limited-service hotels, with 134 hotels and 18,841 rooms listed. Market size and market share: not disclosed
Number of stores and locations
End of period134 Hotels
Number of store openings and closures during the period10 new hotel openings; 3 other hotels ceased operations
Number of employees
1,940 people (at the end of the fiscal year ended March 2026). Headcount at the end of the quarter, changes during the period and the hiring plan: not disclosed
Annual Dividend
¥10
Payout ratio
At least 50% (based on adjusted net income)
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFY2027/3 Q2
Net Sales¥24,823 million (YoY +8.0%)
Operating profit¥1,423 million (financial accounting basis) (YoY -26.7%)
Ordinary income¥861 million (financial accounting basis) (YoY -36.4%)
Net income¥484 million (interim net income attributable to owners of the parent) (YoY -55.8%)
Gross Profit Margin95.9
Operating profit margin5.7
Selling, general and administrative expenses¥22,370 million
Results for the three months of the current quarterThe graph shows standalone second-quarter results for the fiscal year ending March 2027: revenue of ¥12,737 million and operating income of ¥1,101 million, before amortization of goodwill.
Full-year earnings forecastNet Sales ¥54,500 million / Operating profit ¥5,504 millions (before amortization of goodwill) / Ordinary income ¥4,304 millions (before amortization of goodwill) / Adjusted net income ¥4,253 millions (before amortization of goodwill) / Annual Dividend ¥10
Progress against full-year forecastNet Sales 45.5% / Operating profit 37.7% / Ordinary income 35.2% / Adjusted net income 33.7%
Self-assessment against the planContracts secured for new openings were 5 times higher than in the same period of the previous year, indicating steady progress toward achieving the medium-term plan targets.
Segment resultsNewly opened domestic hotels Net Sales ¥2,186 million (YoY +353.0%) / Operating profit ¥130 million (YoY +350.0%) / Existing domestic hotels under operation Net Sales ¥20,503 million (YoY +0.7%) / Operating profit ¥2,730 million (YoY -15.3%) / Other Net Sales ¥2,134 million (YoY -0.6%) / Operating profit ¥-780 million
Breakdown of Factors Affecting the ChangeNet Sales Newly opened hotels (10 hotels) +¥1.70 billion / Existing domestic hotels under operation +¥140 million / Areas outside the Kinki region +¥720 million / Kinki region -¥580 million / Other -¥10 million / Operating profit Newly opened hotels (10 hotels) +¥100 million / Existing domestic hotels under operation -¥490 million / Areas outside the Kinki region -¥90 million / Kinki region -¥400 million / Other -¥120 million
Key KPIsIndicator name Inbound visitors from countries other than China / Value 27,395 thousand people / Year on year against the same period last year 13 thousand people, Indicator name Number of contracts secured / Value 20 postings / Year on year against the same period last year 5x, Indicator name Hotels under management / Value 134 Hotels / Year on year against the same period last year Not disclosed, Indicator name Guest rooms under management / Value 18,841 Rooms / Year on year against the same period last year Not disclosed, Indicator name Occupancy rate (total) / Value 89.5 % / Year on year against the same period last year -0.4pt, Indicator name ADR (total) / Value ¥12,631 / Year on year against the same period last year ¥-0.1, Indicator name RevPAR (total) / Value ¥11,307 / Year on year against the same period last year ¥-0.6, Indicator name Inbound ratio (total) / Value 48.3 % / Year on year against the same period last year -2.7pt
Unit price and quantity metricsRoom occupancy rate 89.5%, down 0.4 percentage points year on year / ADR ¥12,631, down 0.1% year on year / RevPAR ¥11,307, down 0.6% year on year
Number of stores and locationsEnd of period 134 Hotels / Number of store openings and closures during the period 10 new hotel openings; 3 other hotels ceased operations
Number of employees1,940 people (at the end of the fiscal year ended March 2026). Headcount at the end of the quarter, changes during the period and the hiring plan: not disclosed
Assumptions Underlying the Business OutlookInbound visitors from countries other than China are expected to continue increasing, although the impact of the decline in Chinese visitors is expected to persist., The reversal in demand following the Expo is expected to run its course after mid-October., The impact of the Asian Games in the Tokai region and reconstruction demand in Kumamoto are expected to be positive factors., The 3-month TIBOR remained within the range of the base rate assumed at the beginning of the period.
Medium-term management plan targetsTarget fiscal year Fiscal year ending March 2031 / Hotels under management 150 hotels / Guest rooms under management 20,000 rooms / Net Sales ¥100 billion / Operating profit ¥10 billion (before amortization of goodwill) / Payout ratio 50% or more / ROE At least 10% / Comparison with actual results 134 managed hotels and 18,841 managed rooms. Achievement rates: 89% for the number of hotels and 94% for the number of rooms
Financial targetsROE Medium-term plan target At least 10% / Actual results for the fiscal year ending March 2026 13.4% (based on adjusted net income) / Equity ratio 46.5% for the fiscal year ended March 2026
Annual Dividend¥10
Payout ratioAt least 50% (based on adjusted net income)
Market Size / ShareRanked approximately 7th among 13 companies in a ranking of operators of limited-service hotels, with 134 hotels and 18,841 rooms listed. Market size and market share: not disclosed
New initiativesLaunch of the master brand “Polaris Hotels & Resorts”, Launch of the membership program “irodori pass”, Opening of 2 KOKO HOTEL properties, Decision to acquire a hotel property in Kobe, Decision to open the second property of the “kokonoyu” hot-spring hotel brand in Gotemba, Fuji
Items this document does not state (5)
Risk amount incorporated into the outlookAcquisition of treasury sharesCapital expendituresOrders received and order backlogKey points of the Q&A

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.