Expansion of meeting-room-equipped accommodation services

「We are also pursuing development aimed at future growth and have decided to open "APA Hotel〈Yamagata Ekimae〉(tentative name)" in March 2028 as the first APA Hotel in Yamagata Prefecture, operated under a franchise arrangement. With the opening of this hotel, the number of APA Hotels operated by us under franchise agreements will reach 23 nationwide.」

「Number of accommodation facilities and RevPAR, key performance indicators (KPIs) for the hotel and accommodation and training business: Fiscal year ending February 2026; RevPAR: 8,974, 8,127, 9,840, 8,365; number of facilities: 27, 30, 30, 31.」

「In June 2025, the Company opened 2 APA Hotels in Nobeoka, Miyazaki Prefecture, and 1 in Hofu, Yamaguchi Prefecture, for a total of 3 hotels. In July 2025, it opened SHONIN PARK, a multi-purpose resort featuring sand baths, hot springs, accommodation and dining, through its first PARK-PFI project in Beppu, Oita Prefecture.」

「The Company continued to actively open new locations and expand and renovate existing facilities. During the fourth quarter of the consolidated fiscal year, it opened 2 facilities, comprising a new-brand hotel and a new APA Hotel operated under a franchise, and actively advanced projects to open additional locations at other facilities. As a result, full-year accommodation services revenue from the Company's resort hotels, business hotels and other facilities exceeded ¥10 billion, reaching a record high.」

「The Company opened 3 additional APA Hotels, in Kyoto Gojo Omiya in July 2024 and in Hakodate and Obihiro in August 2024.」

「In the hotel and accommodation and training business, room rates and occupancy rates improved due to increased business use for travel and business trips and growth in inbound demand, with quarterly accommodation services revenue from the Company's business hotels, resort hotels and other facilities reaching record highs.」

「In the hotel and accommodation and training business, accommodation services revenue from the Company's resort hotels, business hotels and other facilities reached a record high, driven by the rapid recovery and growth in business use for travel and business trips, as well as inbound demand.」

「In the hotel and accommodation and training business, leasing of APA Hotels operated by the Company as franchisee as accommodation and recuperation facilities for people infected with COVID-19 and facilities for infection-control measures, which had supported stable earnings, has ended. However, amid a strong recovery in demand for travel and business trips, including inbound tourism, occupancy rates and room rates continued to rise, and revenue increased 24% year on year.」

「In the hotel and accommodation and training business, leasing of APA Hotels operated by the Company as franchisee as accommodation and recuperation facilities for people infected with COVID-19 and facilities for infection-control measures, which had supported stable earnings, has ended. However, occupancy rates and room rates remain high amid the recovery in demand for travel and business trips.」

「In the hotel and accommodation and training business, accommodation services revenue from the Company's resort hotels, business hotels and other facilities reached a record high as travel and business use involving physical travel remained firm. In anticipation of further earnings growth, the Company opened TKP Sunlife Hotel, its first proprietary business hotel brand, during the consolidated fiscal year.」

「The 5 APA Hotels operating under normal conditions and the other accommodation facilities operated by the Company performed well, with occupancy rates and room rates rising as travel demand and business accommodation demand recovered following the nationwide travel assistance program and the substantial easing of border restrictions. As a result, accommodation services revenue reached a record high for the second consecutive quarter.」

「In the accommodation business, in addition to leasing 5 of the 10 APA Hotels operated by the Company as franchisee as accommodation and recuperation facilities for people infected with COVID-19 and facilities for infection-control measures, the Company captured a substantial recovery in travel and business demand, resulting in higher occupancy rates and room rates. Consequently, accommodation business revenue reached a record high for the second consecutive quarter.」

「September 2020: Opened Ishinoya Atami, a hot-spring ryokan equipped with meeting rooms.」

「Capital expenditures during the consolidated fiscal year totaled ¥9,808 million, mainly comprising investments in building fixtures for rental meeting room, banquet facility and serviced office operations, and investments in hotels opened under the hotel and accommodation and training services business.」

「Against this backdrop, in addition to expanding into landmark buildings and other locations, the Company began operating TKP Lectore Hakata Hisayama Onsen, its first Lectore accommodation and training facility in Kyushu, as part of the Lectore series.」

「Against this backdrop, in addition to actively opening locations in landmark buildings, including newly built multi-purpose office buildings, the Company opened APA Hotel〈Osaka Umeda〉, its first accommodation facility in Osaka.」

「During the third quarter of the consolidated fiscal year (1 September 2018 to 30 November 2018), the Group actively opened new locations nationwide, including TKP Garden City Okayama in a multi-purpose commercial building, APA Hotel〈TKP Sendai-Ekikita〉 and TKP Garden City Sendai-Ekikita directly connected to Sendai Station, and First Cabin TKP Ichigaya, a hotel for urban accommodation and training directly connected to the Company's Ichigaya head office.」

「Under these circumstances, our group opened TKP Garden City Osaka Riverside Hotel in June 2018 and TKP Garden City PREMIUM Yokohama West Exit in July 2018. We also opened Apa Hotel TKP Keikyu Kawasaki Station Front in June 2018.」

「In April 2018, we acquired the IPC International Productivity Exchange Center, located on approximately 12,000 tsubo of land at Shonan International Village and equipped with 22 training rooms and 160 guest rooms, and began operating the facility as Lectore Hayama Shonan International Village under “Lectore,” our group’s corporate accommodation and training brand.」

「Capital investments during the fiscal year under review amounted to ¥9,498 million, mainly comprising investments in building improvements for the meeting-room and banquet-facility operating services business, as well as the acquisition of land for hotels scheduled to open under the accommodation services business and related construction work.」

「At an extraordinary meeting of the Board of Directors held on 28 December 2017, the company resolved on the following capital investments related to opening hotels operated by the company: (1) Hakata Daimyo: planned investment of approximately ¥3,358 million (land: ¥1,458 million; building: approximately ¥1,800 million), scheduled opening: November 2019; (2) Hakata Higashihie: planned investment of approximately ¥2,539 million (land: ¥939 million; building: approximately ¥1,500 million), scheduled opening: November 2019.」

「At our accommodation facilities, we also began operating Bayside Hotel Azur Takeshiba, an urban resort seminar hotel, and Lectore Yugawara, a hybrid resort training hotel.」

「We opened Apa Hotel TKP Sapporo Station North Exit Excellent as our second business hotel with meeting rooms, addressing business demand, and Apa Hotel TKP Nippori Station Front as our third.」