Hotel operating disruptions and higher labor costs due to hiring difficulties and employee outflows

「Women account for half of our employees, and 23 of our 57 managers, or 40.3%, are women. For outsourced operations, we are also establishing a system capable of responding promptly to sudden personnel shortages by bringing some work in-house and entering into contracts with multiple outsourcing providers rather than relying on a single provider.」

「We believe that addressing sustainability issues can create revenue opportunities as well as reduce risks. In particular, because the hotel business depends heavily on human services, a shortage of personnel poses a risk of disrupting hotel operations, while providing hospitality services that exceed customer expectations can create an opportunity to gain the support of many customers. Accordingly, we believe that initiatives related to human capital are of the greatest importance.」

「Because the hotel business depends heavily on human services, operations may be disrupted if it becomes difficult to secure personnel due to hiring difficulties or other factors, or if personnel leave for other companies. Operating results and financial condition may also be affected by higher labor costs resulting from increases in the minimum wage and social insurance contribution rates associated with social security policies, as well as higher recruitment costs.」