Development of Accommodation Facilities and Tourism-Related Services for Inbound Visitors

「In the hotel operations business, during the consolidated fiscal year, the Company operated existing hotels and focused on new development and securing operating rights for existing hotels and ryokans. However, it did not secure any new operating rights. Revenue was ¥694.732 million, up 19.5% year on year, and the segment loss (operating loss) was ¥61.789 million, compared with an operating loss of ¥60.705 million in the previous year.」

「In the hotel operations business, during the interim consolidated accounting period, the Company promoted operations at existing hotels and focused on new development and securing operating rights for existing hotels and ryokans. However, it did not secure any new operating rights. Revenue was ¥365.245 million, up 33.8% from the previous interim consolidated accounting period, and the segment loss (operating loss) was ¥15.208 million, compared with an operating loss of ¥22.914 million in the previous interim consolidated accounting period.」

「In the hotel operations business, during the consolidated fiscal year, the Company focused not only on hotel operations but also on securing operating rights for newly developed hotels and existing resort hotels and ryokans. It achieved a certain level of success in securing operating rights for newly developed hotels, but did not achieve sufficient results in securing operating rights for existing resort hotels and ryokans. Consequently, revenue was ¥581.151 million, up 30.2% from the previous consolidated fiscal year, and the segment loss (operating loss) was ¥60.705 million, compared with an operating loss of ¥77.223 million in the previous consolidated fiscal year.」

「In the hotel operations business, the Company focused on operating hotels under global hotel brands during the interim consolidated accounting period. Revenue was ¥272.898 million, up 34.6% from the previous interim consolidated accounting period, and the segment loss (operating loss) was ¥22.914 million, compared with an operating loss of ¥44.934 million in the previous interim consolidated accounting period.」

「As announced in the notice dated 8 November 2023 regarding the execution of a reservation agreement for a building lease in the hotel operations business, the Company resolved to execute a reservation agreement for a building lease for the Hokkaido Ballpark Hotel (tentative name), scheduled to open in March 2027, and began work on a larger-scale project than the hotels the Group had operated to date.」

「As announced in the notice dated 8 November 2023 regarding the execution of a reservation agreement for a building lease in the hotel operations business, the Company resolved to execute a reservation agreement for a building lease for the Hokkaido Ballpark Hotel (tentative name), scheduled to open in March 2027, and began work on a larger-scale project than the hotels the Group had operated to date.」

「In the hotel operations business, the Company focused on operating and developing hotels under its own and global hotel brands, as well as advisory services and activities as a third-party operator. However, as demand from visitors to Japan from mainland China, which is a focus market for the Company, had not recovered and the opening of new hotels had been delayed, revenue was ¥202.700 million, up 281.4% year on year, and the segment loss (operating loss) was ¥44.934 million, compared with an operating loss of ¥77.728 million in the same quarter of the previous year.」

「In the hotel operations business, the Company focused on operating and developing hotels under its own and global hotel brands, as well as advisory services and activities as a third-party operator. However, as demand from visitors to Japan from mainland China, which is a focus market for the Company, had not recovered, revenue was ¥114.774 million, up 1,197.4% year on year, and the segment loss (operating loss) was ¥15.679 million, compared with an operating loss of ¥19.783 million in the same quarter of the previous year.」

「In the hotel operations business, the Company focused on hotel management through building leases, contracted hotel operations and consulting services while seeking to operate hotels as a third-party operator for its own and global hotel brands. However, as inbound demand other than domestic travel had not recovered, revenue was ¥102.640 million, up 249.2% year on year, and the segment loss (operating loss) was ¥111.447 million, compared with an operating loss of ¥37.010 million in the same quarter of the previous year.」

「In the hotel operations business, the Company focused on hotel management through leases and consulting services while seeking to win contracts to operate hotels as a third-party operator for its own and global hotel brands. However, as tourism demand had not yet achieved a stable recovery, revenue was ¥53.147 million, up 187.1% year on year, and the segment loss (operating loss) was ¥77.728 million, compared with an operating loss of ¥21.221 million in the same quarter of the previous year.」

「In the hotel operations business, the Company focused on hotel management through leases and consulting services while seeking to win contracts to operate hotels as a third-party operator for its own and global hotel brands. However, as newly contracted facilities were not scheduled to open until the second quarter or later, revenue was ¥8.846 million, down 6.3% year on year, and the segment loss (operating loss) was ¥19.783 million, compared with an operating loss of ¥6.695 million in the same quarter of the previous year.」

「Furthermore, the Group has expanded into a new business area targeting inbound tourism, acquiring and developing differentiated accommodation facilities, directing customers to accommodation facilities through subsidiaries, and providing accommodation facility operation services. Meanwhile, the spread of COVID-19 and the prolonged impact of the pandemic have had a significant impact on the inbound business operated by the Company, forcing it to review its business strategy.」

「As a result, the Intrans Group established a structure that enabled it to generate revenue not only from acquiring, developing and selling accommodation facilities for inbound visitors, but also from providing development support, operational management consulting services and customer-acquisition promotions, as well as from opportunities after selling the properties, in addition to revenue while owning the accommodation facilities. Meanwhile, the spread of COVID-19 from the beginning of 2020 and the prolonged impact affected the inbound-related business as a whole. As part of the yokocho business, the planned development of 3 locations—Takasaki, Wakayama and Matsuyama—was cancelled.」

「In addition, in October 2019 the Company newly established 株式会社イントランスホテルズアンドリゾーツ to oversee the operating functions of its inbound-related business. As a result, the Intrans Group established a structure that enabled it to generate revenue not only from acquiring, developing and selling accommodation facilities for inbound visitors, but also from providing development support, operational management consulting services and customer-acquisition promotions, as well as from opportunities after selling the properties, in addition to revenue while owning the accommodation facilities.」

「In its purchasing activities, the traditional-house business, which acquires and develops accommodation facilities using traditional houses, acquired 4 projects in the Tokyo and Kanagawa areas. It also acquired 5 properties for developing food-related facilities, one of the tourism-related services focused on food, known as the yokocho business; 1 of these opened in Asahikawa, Hokkaido, on 10 August 2019. In addition, in July 2019 the Company established a corporation in Shanghai, China, to provide inbound solutions, including accommodation facilities, to Chinese customers, and began local sales promotions and other activities.」

「On the acquisition side, in the traditional-house business, which acquires and develops accommodation facilities using traditional Japanese houses, we entered into sale and purchase agreements for 4 projects in the Tokyo and Kanagawa areas. We also entered into sale and purchase agreements for 5 projects intended as development properties for food-related facilities, or the Yokocho business, one of the tourism-related services focused on food. The inbound-related business is progressing smoothly.」

「In addition to its existing businesses, the Company established an internal project team to promote inbound-related businesses, including the acquisition and development of differentiated accommodation facilities targeting inbound visitors and the provision of tourism-related services.」