Structural Reform of the Hotel Business: Exit from Unprofitable Hotels and Redevelopment of Former Hotel Sites

「The hotel business continued to be severely affected by COVID-19 during the fiscal year, with some hotels temporarily closed and customer numbers in both the accommodation and food and beverage divisions slow to recover. Even under these difficult business conditions, the Group proceeded to concentrate and selectively allocate management resources by ending operations at unprofitable hotels, opening Remm Plus Kobe Sannomiya in April 2021 and deciding to open a new hotel in the Umekita 2nd District.」

「Specifically, the Group had been considering ending operations at the Osaka New Hankyu Hotel in the near future as the building had continued to deteriorate. Hotel Hankyu RESPIRE Osaka, a hotel of similar scale, opened on an adjacent site as an alternative facility, and the Umeda 1-chome 1-bancho Project was completed in spring 2022. Accordingly, the Group plans to end operations at the hotel around the end of fiscal 2024 and is considering the intensive use of the former site as its next major project. In addition, it decided to end operations at the Senri Hankyu Hotel around the end of fiscal 2025 because the building has also continued to deteriorate.」