Difficulty securing profitability in the hotel business due to declining business travel and business accommodation demand
First written in FY2021. 11 of 15 entries say "Mitigated", first in FY2022-Q2. Latest entry: FY2026-H1.
No other company in this theme has enough history to compare yet.
- FY2026-H1MitigatedAnnual report
「We decided to transfer the hotel business in order to improve the Group’s earnings power by focusing its management resources on core areas and transferring the hotel business, which is a non-core business.」
On 26 August 2025, we transferred the hotel-related business, reducing our direct exposure to business travel and business accommodation demand associated with the hotel business. We recognized a gain on the sale of shares in a subsidiary of ¥281.533 million. - FY2025-H1Revenue declined due to competition and the unwind of support measures while accommodation demand recoveredAnnual report
「Amid intensifying competition with peers, the hotel business worked to attract group guests to events and sporting events. Because most guests were business travelers, the business received little benefit from inbound demand, and revenue fell slightly below the previous year's result. However, total revenue from Other businesses was ¥134 million, up 3.4% year on year.」
Although accommodation demand was recovering, the hotel business had limited exposure to inbound demand because it was centered on business travelers, and intensified competition with other companies in the same industry meant that hotel revenue fell slightly short of the previous year’s result. - FY2025-Q1Revenue declined as support measures unwound while accommodation demand recoveredAnnual report
「Lodging demand had recovered to pre-pandemic levels, but because the same period of the previous year benefited from Nagano Prefecture's national travel support program, Shinshu-wari SPECIAL, sales for the cumulative first quarter of the current fiscal year fell below the previous year's results.」
Although accommodation demand recovered to pre-pandemic levels, hotel revenue declined 2.7% year on year due to the unwind of the previous year’s “Shinshu-wari SPECIAL” program and intensified competition. - FY2024MitigatedAnnual report
「Although lodging demand from business and leisure travelers is steadily recovering toward pre-pandemic levels, competition with other hotel operators, including new entrants, is intensifying.」
Accommodation demand from business travelers and tourists was recovering toward pre-pandemic levels. Also disclosed was intensified competition with other companies in the same industry, including new entrants. - FY2024-Q3MitigatedAnnual report
「Although lodging demand from business and leisure travelers is steadily recovering toward pre-pandemic levels, competition with other hotel operators, including new entrants, is intensifying.」
Accommodation demand from business travelers and tourists was recovering toward pre-pandemic levels, mitigating the risk of declining business travel and accommodation demand. Meanwhile, intensified competition was disclosed separately. - FY2024-Q2MitigatedAnnual report
「The hotel business saw lodging demand trend toward recovery following the reclassification of COVID-19 under the Infectious Diseases Control Law and the lifting of restrictions on activities. Business travel gradually recovered, and efforts to attract group guests to events and sporting events resulted in net sales of ¥130 million, up 14.4% year on year.」
Accommodation demand recovered as the change in the infectious disease classification and the lifting of activity restrictions, together with the acquisition of group bookings from business travelers and event and sporting event attendees, boosted demand, and hotel revenue increased 14.4% year on year. - FY2024-Q1MitigatedAnnual report
「The hotel business continued operating while thoroughly implementing measures to prevent the spread of COVID-19 even after COVID-19 was reclassified as a Class 5 disease under the Infectious Diseases Control Law. In the first quarter, use by business and leisure travelers remained solid, supported in part by the extension of Nagano Prefecture's national travel support program, Shinshu-wari SPECIAL.」
Accommodation demand remained solid due to the extension of the “Shinshu-wari SPECIAL” program and use by business travelers and tourists, while infection-prevention measures continued after the reclassification to Category 5. Hotel revenue increased 10.0% year on year. - FY2023-Q3MitigatedAnnual report
「The hotel business continued operating while thoroughly implementing measures to prevent the spread of COVID-19 amid a renewed increase in infections. In the third quarter, the regional tourism support program was extended, and demand was further supported by the demand stimulus provided by Nagano Prefecture's Shinshu-wari SPECIAL. Use by business and leisure travelers remained solid, while various sporting events and other events were also held, increasing lodging demand. As a result, net sales were ¥177 million, compared with ¥94 million in the same quarter of the previous year.」
While continuing infection-prevention measures, accommodation demand increased due to “Shinshu-wari SPECIAL,” the resumption of events, and use by business travelers and tourists, and hotel revenue exceeded the same quarter of the previous year. - FY2023-Q2MitigatedAnnual report
「In the second quarter, business travel demand remained solid, and accommodation demand increased as various sporting events and other events resumed, aided by the effects of “Shinshu-wari SPECIAL,” a tourism support program implemented by Nagano Prefecture.」
Accommodation demand increased on solid business travel demand, the resumption of sporting events and other events, and “Shinshu-wari SPECIAL,” improving the demand environment for the hotel business. - FY2023-Q1MitigatedAnnual report
「The hotel business continued operating while rigorously implementing measures to prevent COVID-19 infections. In the first quarter, business travel demand remained solid, while the number of tourists staying at our hotels increased as the period coincided with the Zenkoji Temple opening event. Various sporting events and other events were also held, increasing accommodation demand. As a result, revenue was ¥79 million, compared with ¥39 million in the same quarter of the previous year.」
Hotel revenue increased from ¥39.02 million in the same quarter of the previous year to ¥79.21 million as accommodation demand from business travelers, tourists and attendees at sporting events and other events increased. - FY2022MitigatedAnnual report
「The hotel business continued operating while thoroughly implementing measures to prevent COVID-19 infections. Following the lifting of state of emergency declarations and priority preventive measures issued across Japan, use by business travellers and tourists increased. In addition, as various sporting events and other events resumed, accommodation demand recovered and revenue exceeded the previous year.」
Accommodation demand recovered following the lifting of the states of emergency and the resumption of events, and revenue from other businesses increased 50.6% year on year. - FY2022-Q3MitigatedAnnual report
「The hotel business continued operating while rigorously implementing measures to prevent COVID-19 infections. Following the lifting at the end of September of the states of emergency and priority preventive measures issued nationwide, use by business travelers and tourists increased. In addition, accommodation demand recovered as various sporting events and other events resumed, and revenue exceeded the same period of the previous year. As a result, revenue increased 57.1% year on year to ¥94 million.」
The lifting of the states of emergency and other measures and the resumption of sporting events and other events led to a recovery in business travel, tourism and accommodation demand, and hotel revenue increased 57.1% year on year. - FY2022-Q2MitigatedAnnual report
「Although the challenging environment caused by COVID-19 continued, accommodation demand recovered slightly as various sporting events and other events gradually resumed, and revenue exceeded the same period of the previous year.」
Although the hotel business remained in a challenging environment, accommodation demand recovered slightly as sporting events and other events resumed, and revenue exceeded the same period of the previous year. - FY2022-Q1MaterialisedAnnual report
「As the state of emergency and priority preventive measures continued to apply in some areas, tourists and business travelers did not recover and the challenging operating environment continued.」
The risk of declining business travel and business accommodation demand materialized as a lack of recovery in tourist and business travel demand and a challenging operating environment for the hotel business. - FY2021First statedAnnual report
「Based on materials published by the Japan Tourism Agency and various think tanks, the Group expects domestic business accommodation demand to decline and business travel itself to be constrained in the new-normal era, as telework and web conferencing become widespread. Accordingly, we expect it to be difficult to secure profitability in the hotel business from fiscal 2021 onward.」
Separately identified the structural decline in business travel and domestic business accommodation demand resulting from the spread of telework and web conferences as a future earnings risk for the hotel business.