Deteriorating hotel profitability and impairment of fixed assets

「業務オペレーションの内製化と効率化に努めた結果、売上高は前年同四半期比18.1％増の299百万円、営業利益は前年同四半期比214.8％増の11百万円となりました。」

「In the hotel business, we actively promoted weddings, expanded demand for banquets and restaurants, and advanced the e-commerce business in line with customer needs. Revenue increased 15.0% year on year to ¥1,120 million. Despite the impact of inflation and other factors, efforts to reduce the cost ratio through in-house operations and other measures put the business on a recovery trend, resulting in operating income of ¥12 million, compared with an operating loss of ¥13 million in the previous fiscal year.」

「営業利益は物価高騰等の影響があったものの、業務の内製化等により原価率の低減に努め回復傾向となり12百万円（前期は13百万円の営業損失）となりました。」

「Although efforts to reduce the cost ratio through in-house operations and other measures put the business on a recovery trend, the impact of rising prices and other factors resulted in revenue increasing 20.1% from the previous interim consolidated accounting period to ¥481 million, while the operating loss was ¥22 million, compared with an operating loss of ¥34 million in the previous interim consolidated accounting period.」

「Although we continued active customer-acquisition activities for new weddings and banquets and promoted low-cost operations, the closure of Hachioji Hotel New Grand, effective 30 November 2023, and other factors resulted in revenue of ¥401 million, down 29.8% from the previous interim consolidated accounting period, and an operating loss of ¥34 million, compared with operating profit of ¥3 million in the previous interim consolidated accounting period.」

「As a result of active customer-acquisition activities following the easing of restrictions on activities, the number of weddings held and banquets increased. In addition, the promotion of low-cost operations resulted in revenue of ¥1,154 million, up 5.1% from the previous period, and operating profit of ¥28 million, compared with an operating loss of ¥53 million in the previous period.」

「As a result of active customer-acquisition activities following the easing of restrictions on activities, the number of weddings held and banquets increased. In addition, the promotion of low-cost operations resulted in revenue of ¥915 million, up 14.6% year on year, and operating profit of ¥28 million, compared with an operating loss of ¥43 million in the same quarter of the previous year.」

「Revenue was ¥304 million, up 23.5% from the same quarter of the previous year, and operating profit was ¥15 million, compared with an operating loss of ¥18 million in the same quarter of the previous year.」

「In the hotel business, restrictions on activities were eased from April 2022, leading to increases in the number of weddings held, the number of banquets, the accommodation occupancy rate, and the number of new wedding bookings. We have thoroughly implemented the government's recommended initiatives to prevent the spread of infection and are operating the business while ensuring the safety of customers and staff. In addition, as a result of active advertising and promotional activities aimed at recovering performance, revenue was ¥798 million, up 52.4% year on year, and the operating loss was ¥43 million, compared with an operating loss of ¥182 million in the same quarter of the previous year.」

「As a result of active advertising aimed at restoring performance, revenue increased 55.9% year on year to ¥445 million, and the operating loss was ¥71 million, compared with an operating loss of ¥145 million in the same quarter of the previous year.」

「As a result of actively advertising to achieve a recovery in operating results, revenue was ¥246 million, up 34.6% from the same quarter of the previous year, and the operating loss was ¥18 million, compared with an operating loss of ¥57 million in the same quarter of the previous year.」

「In the hotel business, the declaration of a state of emergency and the implementation of priority preventive measures due to COVID-19 reduced opportunities for weddings and banquets, and difficult conditions continued. As the Company also assisted with weddings and banquets while implementing infection-prevention measures, revenue was ¥524 million, up 51.6% year on year, and the operating loss was ¥182 million, compared with an operating loss of ¥317 million in the same quarter of the previous year.」

「In the hotel business, the declaration of a state of emergency and the implementation of priority preventive measures due to COVID-19 reduced opportunities for weddings and banquets, and difficult conditions continued. As the Company also assisted with weddings and banquets while implementing infection-prevention measures, revenue was ¥285 million, up 86.1% from the same quarter of the previous year, and the operating loss was ¥145 million, compared with an operating loss of ¥252 million in the same quarter of the previous year.」

「As the Company also assisted with weddings and banquets while implementing infection-prevention measures, revenue was ¥182 million, up 257.4% from the same quarter of the previous year, and the operating loss was ¥57 million, compared with an operating loss of ¥147 million in the same quarter of the previous year.」

「As a result, revenue was ¥345 million, down 72.9% from the same quarter of the previous year, and the operating loss was ¥317 million, compared with an operating loss of ¥207 million in the same quarter of the previous year.」

「For Hotel Sunlife Garden, The Wings Ebina and Hachioji Hotel New Grand, whose profitability had declined, the carrying amounts were reduced to their recoverable amounts, and the reduction of ¥1,171.184 million was recorded as an impairment loss under extraordinary losses.」