Earnings volatility due to lodging contract expirations, lower utilization and renovation spending
First written in FY2017-Q1. 18 of 20 entries say "Materialised", first in FY2017-Q1. Latest entry: FY2024.
No other company in this theme has enough history to compare yet.
- FY2024DroppedAnnual report
「Accordingly, the company completely withdrew from the operations business.」
As the Company completely exited hotel and store operations, the previous revenue volatility risks centered on accommodation-contract expiries, lower utilization, and renovation expenditures no longer remained applicable. - FY2023MaterialisedAnnual report
「During the fiscal year, following the sale of the hotel property Blue Port Hotel Kanda Kitakyushu Airport, hotel operations were transferred to an affiliated company of the buyer. The contract for the hospital food-service operations also ended on 31 March 2023.」
The sale of a hotel property, the transfer of operations, and the end of catering services resulted in the revenue volatility factors associated with the contractual and operating structure of the accommodation facilities progressing in practice. - FY2021MaterialisedAnnual report
「At our consolidated subsidiaries 株式会社ホテルシステム二十一 (Kakogawa, Hyogo Prefecture) and 株式会社ケンテン (Chiyoda-ku, Tokyo), expected earnings could no longer be anticipated and recoverability declined due to changes in the business environment. Accordingly, book values were reduced to recoverable amounts, and the reductions were recorded as impairment losses under extraordinary losses.」
Following the end of operations at Kakogawa Plaza Hotel, an impairment loss of ¥159.645 million was recorded on goodwill, property, plant and equipment, and other assets. The revenue volatility risk at the accommodation facilities has materialized as impairment. - FY2021-Q3MaterialisedAnnual report
「With regard to the operation of Kakogawa Plaza Hotel, operations changed from the Company to another company at the end of November 2020, and the Company ceased operating the hotel.」
The end of operations at Kakogawa Plaza Hotel was implemented, and because expected earnings could no longer be anticipated due to changes in the business environment, an impairment loss of ¥132.415 million was recorded on goodwill and other assets. - FY2021-Q2MaterialisedAnnual report
「In addition, our consolidated subsidiary 株式会社ホテルシステム二十一 will cease operating Kakogawa Plaza Hotel at the end of November 2020. Accordingly, the remaining book values of goodwill and property, plant and equipment arising when its shares were acquired were reduced, and an impairment loss of ¥132 million was recorded as an extraordinary loss.」
The decision was made to cease operating Kakogawa Plaza Hotel, and an impairment loss of ¥132 million on goodwill and property, plant and equipment was recorded due to the decline in expected earnings. - FY2021-Q1MaterialisedAnnual report
「In the first quarter, customer traffic declined sharply due to temporary store closures, shortened business hours and other effects associated with the spread of COVID-19, causing overall performance across the business locations to stagnate. As a result, revenue amounted to ¥119 million, down 59.1% year on year, and the segment recorded a loss of ¥53 million, compared with segment profit of ¥12 million in the same period of the previous year.」
The decline in visitors accompanying the closure of accommodation facilities and other stores and the shortening of their operating hours materialized as a decline in operations-business revenue and a shift from segment profit to a loss. - FY2020MaterialisedAnnual report
「Kakogawa Plaza Hotel, our core business, had stable earning power through February 2020. Thereafter, its operating conditions rapidly deteriorated due to the impact of requests to refrain from going out and other measures to prevent the spread of COVID-19, resulting in revenue of ¥1,077 million, down 6.3% year on year, and a segment loss of ¥6 million, compared with segment profit of ¥24 million in the same period of the previous year.」
In addition to the previous risks from the end of operations and renovation closures, the revenue decline and shift to a loss at the core hotel due to COVID-19 have materialized as risks affecting accommodation-facility earnings. - FY2020-Q3MaterialisedAnnual report
「In the third quarter, the apparel and accessories stores operated by 株式会社ケンテン and Toki Grand Bowl continued to operate steadily. At the core business, Kakogawa Plaza Hotel, the lodging division maintained stable earnings due to increased inbound visitors to Japan, but revenue and profit were affected by intensifying competition resulting from an increase in competing hotels and more intense competition for corporate banquets and weddings. As a result, revenue amounted to ¥845 million, down 1.0% year on year, and segment profit amounted to ¥9 million, down 3.3%.」
While the accommodation division remained stable due to an increase in visitors to Japan, revenue and profit at the core hotel declined because of new competing hotels and intensifying competition in banquets and weddings. - FY2020-Q2MitigatedAnnual report
「During the second quarter, firm personal consumption supported by special demand related to the change of era to Reiwa and the extended holiday period, together with an increase in the number of visitors to Japan, enabled stable operations at our core business, Kakogawa Plaza Hotel, and at the apparel and accessories stores operated by 株式会社ケンテン.」
Compared with the same period of the previous year, which was affected by the end of operations at Hotel JAL City Matsuyama and the renovation closure of Kakogawa Plaza Hotel, Kakogawa Plaza Hotel operated steadily, and the operations business as a whole achieved increases in both revenue and profit. - FY2019MaterialisedAnnual report
「However, revenue decreased 10.4% from ¥1,283 million in the same period of the previous year, reflecting the impact of the temporary closure of our core facility, Kakogawa Plaza Hotel, for major renovation work, continued consumer thrift, and weak sales at the apparel and accessories stores operated by 株式会社ケンテン amid a challenging environment, including rising personnel costs due to efforts to secure staff.」
The temporary closure of Kakogawa Plaza Hotel for major renovations, together with weak sales at 株式会社ケンテン and other factors, appeared in full-year results as a decline in revenue from the operations business. - FY2019-Q3MaterialisedAnnual report
「Sales decreased 15.6% from ¥1,012 million in the same period of the previous year, mainly due to the effect of weak sales at 株式会社ケンテン, which operates apparel and accessories stores in a difficult environment marked by the prolonged consumer preference for saving and higher labor costs due to efforts to secure personnel, as well as the temporary closure of the Group's flagship facility, Kakogawa Plaza Hotel, for major renovation work.」
Kakogawa Plaza Hotel was temporarily closed for major renovation work, and the revenue volatility risk at the accommodation facilities has continued to materialize as a decline in revenue. - FY2019-Q2MaterialisedAnnual report
「Due to the end of operations at Hotel JAL City Matsuyama and the temporary closure of Kakogawa Plaza Hotel for major renovation work, revenue decreased 2.9% year on year to ¥897 million.」
In addition to the end of operations at Hotel JAL City Matsuyama, Kakogawa Plaza Hotel was temporarily closed for major renovations, and the revenue volatility risk materialized as a decline in revenue. - FY2019-Q1MaterialisedAnnual report
「As a result, the Group's performance for the first quarter consisted of revenue of ¥468 million, down 14.1% from the same period of the previous year due to the end of operations at Hotel JAL City Matsuyama. However, reflecting stronger earnings capacity from the increase in income-producing real estate, profit at each stage consisted of operating profit of ¥22 million, compared with an operating loss of ¥20 million, ordinary profit of ¥2 million, compared with an ordinary loss of ¥32 million, and quarterly net profit attributable to owners of the parent of ¥33 million, compared with a quarterly net loss attributable to owners of the parent of ¥33 million.」
The decline in revenue resulting from the end of operations at Hotel JAL City Matsuyama continued to appear in the results this quarter, with revenue down 14.1% year on year. - FY2018MaterialisedAnnual report
「The comparison with the same period of the previous year, taking into account the impact of the end of operations at ホテルＪＡＬシティ松山 in June 2017 (the "withdrawn facility"), is as follows.」
The end of operations at Hotel JAL City Matsuyama affected the business mix and earnings for the full year. Revenue from the exited property was ¥168 million, and a segment loss of ¥1 million was recorded. - FY2018-Q3MaterialisedAnnual report
「The comparison with the same period of the previous year, taking into account the impact of the end of operations at ホテルＪＡＬシティ松山 in June 2017 (the "withdrawn facility"), is as follows.」
The impact of Hotel JAL City Matsuyama reaching the end of its operating term continued into the third quarter. For the exited property, revenue was ¥168 million and segment profit was a loss of ¥1 million. - FY2018-Q2MaterialisedAnnual report
「The comparison with the same period of the previous year, taking into account the impact of the end of operations at ホテルＪＡＬシティ松山 in June 2017 (the "withdrawn facility"), is as follows.」
The impact of the end of operations at ホテルJALシティ松山 continued, with the withdrawn facility accounting for ¥168 million of revenue and a segment loss of ¥1 million. - FY2018-Q1MaterialisedAnnual report
「In the first quarter, operations were generally firm, including at ホテルＪＡＬシティ松山, which ceased operations at the end of the quarter. As a result, revenue was ¥454 million, up 1.4% year on year, and」
ホテルJALシティ松山 ceased operations at the end of the first quarter, and the impact of the lodging facility's closure on the business mix and earnings newly appeared in the results. - FY2017MaterialisedAnnual report
「The comparison with the same period of the previous year, taking into account the impact of the expiration in March 2016 of the contract for 国民宿舎マリンテラスあしや (the "withdrawn facility"), is as follows. In the current period, revenue declined 15.8% year on year to ¥1,813 million, although」
The decline in operations business revenue resulting from the expiration of the contract and the end of operations was reflected in the full-year results. - FY2017-Q3MaterialisedAnnual report
「In the third quarter, revenue was ¥1,371 million, down 17.0% year on year, and segment profit was ¥51 million, down 32.0%. The comparison with the same period of the previous year, taking into account the impact of the expiration of the contract for 国民宿舎マリンテラスあしや (the "withdrawn facility"), is as follows.」
The decline in revenue and profit resulting from the expiration of the lodging facility contract and the end of operations was reflected in the cumulative third-quarter results. - FY2017-Q1MaterialisedAnnual report
「In the first quarter, lodging performance at accommodation facilities declined year on year, the contract for 国民宿舎マリンテラスあしや expired in March 2016, and spending was incurred to renovate accommodation facilities. As a result, revenue was ¥448 million, down 17.3% year on year, and segment profit was ¥6 million, down 63.0%, resulting in lower revenue and profit than in the same quarter of the previous year.」
The decline in lodging performance, expiration of the facility contract and renovation spending were reflected in lower revenue and profit in the operations business for the quarter.