Risk of lower hotel occupancy rates and room rates due to economic conditions, demand and oversupply
First written in FY2018. 3 of 7 entries say "Worsened", first in FY2021-Q3. Latest entry: FY2024.
Azplanning moved to the "Worse" side of this theme in 2021, 1 year after the typical company in this theme (2020).
The whole theme swung hardest in 2020: 8 of 15 companies on the "Worse" side.
7 other companies' latest entry also says "Mitigated".
- FY2024MitigatedAnnual report
「In addition, the Tohoku business hotel operated in the accommodation segment of the real estate leasing business has achieved a certain level of contribution to the reconstruction support originally envisaged. Taking advantage of its relocatable design, the company has restored it to a source of stable income by reusing it as a high-school dormitory and transferring it to companies for their own use.」
Reuse and transfer of the Tohoku Hotel, which was affected by lower hotel demand, have progressed, reducing exposure to demand risk associated with conventional hotel operations. - FY2022MaterialisedAnnual report
「In the real estate leasing business, the Company decided to suspend operations at the Tohoku Hotel, where occupancy had fallen substantially, and record an impairment loss while taking time to consider and select methods for its future reuse.」
The risk of lower hotel demand and occupancy rates has materialized in the suspension of operations at the Tohoku Hotel, a ¥116.644 million segment loss in the leasing business and a ¥742.118 million impairment loss on fixed assets. - FY2022-Q3WorsenedAnnual report
「However, the Company is considering converting certain properties in the accommodation business into revenue-generating uses through relocation and has temporarily suspended their operations. As a result, revenue for the nine-month period ended in the third quarter was ¥358.399 million, down 16.0% year on year, and the segment loss was ¥108.040 million, compared with a segment loss of ¥96.036 million in the same period of the previous year.」
Operations at some properties in the accommodation business were suspended, and the impact of hotel and accommodation demand continues to be reflected in lower revenue and an expanded segment loss in the leasing business. - FY2021WorsenedAnnual report
「In the real estate leasing business, the Tohoku Hotel and its private lodging operations were significantly affected by the spread of COVID-19, resulting in an operating loss in the segment.」
The Tohoku Hotel and private lodging operations were significantly affected by COVID-19, and an operating loss actually occurred in the leasing business, including hotels. - FY2021-Q3WorsenedAnnual report
「Hotels are also one of the industries most affected by current social conditions, and fluctuations in demand have increased.」
The Company explains that fluctuations in hotel demand have increased during the COVID-19 pandemic, and the previously identified risk of lower hotel occupancy rates and room rates has materialized and expanded. - FY2019RestatedAnnual report
「The Company’s results could be affected by lower room rates and occupancy resulting from reduced corporate travel demand during economic downturns, lower personal leisure demand, fewer visitors to Japan, or excess room supply caused by the opening of new hotels.」
Risks of lower room rates and occupancy rates due to economic conditions, business travel and leisure demand, inbound visitors and excess hotel supply continue to be disclosed. - FY2018First statedAnnual report
「The Company’s results could be affected by lower room rates and occupancy resulting from reduced corporate travel demand during economic downturns, lower personal leisure demand, fewer visitors to Japan, or excess room supply caused by the opening of new hotels.」
The disclosure indicates that changes in business travel and leisure demand, inbound visitors and new hotel supply may affect room rates and occupancy rates.