Improving Hotel Occupancy and Room Rates

「The measures proved effective, including accurately capturing increased demand driven by strong inbound tourism and the Japan International Expo, and thoroughly optimizing selling prices, resulting in high occupancy and high room rates.」

「By accurately responding to customer needs and thoroughly pursuing active sales activities and revenue management, or selling-price optimization, occupancy and room rates remained high.」

「We thoroughly pursued active sales activities and revenue management, or selling-price optimization, and many customers from Japan and overseas used our hotels. As a result, occupancy and room rates remained high, absorbing the costs of large-scale renovation work to improve customer satisfaction and the impact of cost inflation, and generating substantially higher revenue and profit.」

「Inbound demand increased substantially beyond expectations due to the resumption and expansion of international flights following the lifting of entry restrictions, as well as the weaker yen. Domestic demand also increased, supported by growth in business travel and leisure demand and the extension of nationwide travel support. Active sales promotion, including PR activities at overseas travel fairs and travel campaigns for the domestic market, was successful, resulting in high occupancy and high room rates.」

「Inbound demand increased substantially due to the resumption and expansion of international flights following the lifting of entry restrictions, as well as the weaker yen. Domestic demand also benefited from the extension of nationwide travel-support measures and increased summer leisure demand. Active sales promotion, including PR activities at overseas travel fairs and travel campaigns for the domestic market, was successful, resulting in high occupancy. We also worked to optimize selling prices in response to cost inflation in labor and raw materials. As a result, room rates reached a record high, revenue was ¥60,576 million, up 30.3% year on year, and operating profit was ¥7,271 million, up 163.8%.」

「Inbound demand increased substantially due to the resumption and expansion of international flights following the lifting of entry restrictions, as well as the weaker yen. Domestic demand also benefited from the extension of nationwide travel-support measures and increased summer leisure demand. Active sales promotion, including PR activities at overseas travel fairs and travel campaigns for the domestic market, was successful, resulting in high occupancy. We also worked to optimize selling prices in response to cost inflation in labor and raw materials. As a result, room rates reached a record high, revenue was ¥60,576 million, up 30.3% year on year, and operating profit was ¥7,271 million, up 163.8%.」

「In the hotel business, the number of inbound visitors to Japan continued to increase, and the extension of nationwide travel-support measures also contributed. In addition, our highly rated services attracted many customers, allowing both the Dormy Inn and Resort businesses to operate at occupancy well above the industry average. As cost inflation progressed, we also worked to optimize selling prices.」

「Services including our distinctive large hot-spring baths and authentic saunas, carefully prepared meals centered on local specialties, and late-night ramen were highly rated and attracted many customers. As a result, occupancy and room rates improved substantially, generating substantially higher revenue and profit.」

「In addition to the high ratings and strong use of our hotels' bathing facilities, meals and other services, gradual growth in inbound demand helped the hotel business maintain high occupancy and room rates, and it achieved a record profit in the third quarter.」

「The period included Golden Week and the summer season without activity restrictions for the first time since 2019. Many customers used both the Dormy Inn and Resort businesses, attracted by highly rated services including our distinctive large hot-spring baths and authentic saunas, carefully prepared meals centered on local specialties, and late-night ramen. The businesses also benefited from tourism-demand stimulus measures such as prefectural and regional travel discounts, resulting in substantially higher revenue and profit in both businesses.」

「The period included the first Golden Week since 2019 without restrictions on activities. Many customers used both the Dormy Inn and Resort businesses, attracted by highly rated services including our distinctive large hot-spring baths and authentic saunas, carefully prepared meals and late-night ramen. The businesses also benefited from tourism-demand stimulus measures such as prefectural and regional travel discounts, resulting in substantially higher revenue and profit in both businesses.」

「As a result, the hotel business as a whole had 122 properties, up 1 from the previous fiscal year, and 18,675 rooms, up 321. Revenue was ¥62,772 million, up 35.7% from the previous fiscal year, and the operating loss was ¥9,451 million, compared with a loss of ¥13,130 million in the previous fiscal year. In the previous fiscal year, many hotels were closed in response to requests to suspend operations following the declaration of a state of emergency, and the resulting profit or loss was recorded as extraordinary income or loss. Reclassifying it under normal accounting treatment gives an operating loss of ¥16,004 million for the previous fiscal year, representing an improvement of ¥6,552 million.」

「Although intermittent priority preventive measures and states of emergency remained in effect, both the Dormy Inn and Resort businesses generated substantially higher revenue than the same period of the previous year, when the Go To Travel Campaign was in place, supported by recovering occupancy driven by domestic travelers, particularly on weekends, as well as high occupancy during Golden Week. The hotel business returned to profitability in the third quarter.」

「Recently, occupancy and room rates have been on a recovery trend as priority preventive measures and the state of emergency have been fully lifted and restrictions on activities have been eased gradually.」

「Although the hotel business operated under priority preventive measures and a third state of emergency, both the Dormy Inn and Resort businesses generated substantially higher revenue than the same period of the previous year, supported by recovering occupancy driven by domestic travelers, particularly on weekends, as well as high occupancy during Golden Week.」

「As a result, the hotel business as a whole had 121 properties and 18,354 rooms, an increase of 698 rooms from the previous fiscal year, revenue of ¥46,246 million, down 41.4% from the previous fiscal year, and an operating loss of ¥13,130 million, compared with operating profit of ¥4,853 million in the previous fiscal year.」

「Although the hotel business was affected by the sharp decline in inbound demand, domestic demand began to recover from June, and the Go To Travel Campaign provided additional support, further accelerating the pace of recovery. Although the business was partly affected by the resurgence of COVID-19 infections in December, the Group as a whole continued to recover and improve in the third quarter, following the return to profit in the second quarter after the loss in the first quarter.」

「In the hotel business, occupancy fell sharply in April and May due to declining inbound demand and lower business travel and domestic leisure demand caused by requests to refrain from going out. From June onward, domestic demand began to recover, and in September the number of domestic guests at Dormy Inn exceeded the previous year. At Resort, RevPAR at existing properties also remained above the previous year, accelerating the pace of recovery.」

「After the state of emergency was lifted on 25 May, Dormy Inn's occupancy recovered sharply, and the number of domestic guests in June returned to approximately the same level as the same month of the previous year. In the Resort business, occupancy also increased and room rates remained approximately in line with the previous year, helped by the success of new products targeting domestic travelers, including plans with taxi transfers and plans limited to local residents.」

「However, the impact of the novel coronavirus during the fourth quarter of the consolidated fiscal year caused a sharp decline in inbound demand and lower occupancy in the Dormy Inn business, mainly in the Tokyo metropolitan and Kansai regions, due to restraints on business travel, resulting in lower profit.」

「RevPAR in the Osaka area, where new hotel supply by competitors has progressed and the supply-demand balance has shifted, fell below the same period of the previous year and was a major drag on the rise in RevPAR. This was offset by other regions where we operate nationwide, while our distinctive services and features remained popular with domestic travelers. As a result, RevPAR at existing properties nationwide exceeded the same period of the previous year, and revenue and profit continued to increase.」

「RevPAR in the Osaka area, where inbound demand has had a significant impact and new hotel supply by competitors has expanded, fell below the same period of the previous year (Note 1), but this was offset by our nationwide presence. Our distinctive services and features remained popular with domestic travelers, and RevPAR at existing properties nationwide exceeded the same period of the previous year by 2.3%, boosting revenue and operating profit together with the increase in rooms.」

「In addition to continued growth in inbound customers, the 10-day Golden Week holiday during the period enabled many domestic customers to use our hotels. As a result, RevPAR, a key operating metric calculated as occupancy multiplied by average room rate, continued to rise, increasing 5.2% year on year. Together with the increase in rooms, this substantially boosted revenue and operating profit.」

「In addition to continued growth in domestic travel and inbound demand, ongoing initiatives that contributed to higher customer satisfaction helped the business achieve RevPAR above the previous fiscal year, absorb pre-opening costs and other expenses, and generate higher revenue and profit.」

「Although the business was affected by the natural disasters described above, inbound customers increased substantially in every month, exceeding the previous fiscal year, and use by many domestic customers also contributed, with RevPAR, a key operating metric calculated as occupancy multiplied by average room rate, continuing to rise.」

「In the Dormy Inn business, 5 properties opened during the period: Natural Hot Spring Nanbu no Yu Dormy Inn Hon-Hachinohe, Natural Hot Spring Shiraito no Yu Dormy Inn Oita, Natural Hot Spring Naniwa no Yu Dormy Inn Osaka Tanimachi, Kasuga no Yu Dormy Inn Korakuen, and Dormy Inn・global cabin Hamamatsu. Inbound customers increased substantially in every month, exceeding the previous fiscal year. Although the business was affected by the natural disasters described above in the latter half of the six-month period ended the second quarter, it recovered within a short period, helped by increased use by domestic customers, and RevPAR, a key operating metric calculated as occupancy multiplied by average room rate, also increased.」

「At existing properties, occupancy and room rates both exceeded the same period of the previous year and remained strong, helped by a substantial increase in inbound customers and steady growth in use by domestic customers.」

「Occupancy and room rates remained above the previous fiscal year, absorbing pre-opening costs and resulting in higher revenue and profit.」

「At existing properties, occupancy and room rates both exceeded the same period of the previous year and remained strong, helped by a substantial increase in inbound customers and steady growth in use by domestic customers.」

「At existing properties, occupancy and room rates both increased steadily above the same period of the previous year and remained strong, helped by an increase in inbound customers and use by many repeat customers.」

「In the Dormy Inn (business hotel) business, Myojin no Yu Dormy Inn PREMIUM Kanda and Natural Hot Spring Hinata no Yu Dormy Inn Miyazaki opened during the period. At existing properties, occupancy and room rates both remained above the same period of the previous year, helped by strong growth in inbound demand and use by many repeat customers. In the Resort business, occupancy and room rates remained above the same period of the previous year, while thorough cost management was implemented through flexible staffing according to operating conditions.」

「At existing properties, occupancy and room rates remained above the same period of the previous year as steady domestic repeat demand and inbound demand continued to grow. At Natural Hot Spring Rikka no Yu Dormy Inn Kumamoto, which resumed operations in August, business remained strong, with occupancy exceeding the level before the Kumamoto earthquake.」

「Although the competitive environment in the hotel business intensified, both domestic demand remained steady and inbound demand continued to increase, exceeding the previous fiscal year, resulting in high occupancy and high room rates. In the Resort business, occupancy recovered at properties in the Hakone area to levels in line with ordinary years, contributing to high occupancy across the business, well above the same period of the previous year, while room rates also increased.」

「In the hotel business, both Dormy Inn (business hotels) and Resort (resort hotels) continued to operate at high occupancy and with high room rates. In addition to steady domestic travel demand, inbound demand continued to increase, exceeding the previous fiscal year.」