Decline in corporate use and wedding demand due to weak corporate performance and the declining birth rate

「Meanwhile, the bridal segment was affected by the contraction of the market, with both the number of orders and revenue below the same period of the previous year.」

「In the bridal division, we secured bookings slightly above the previous year's level despite the continued contraction of the market.」

「At Karasuma Kyoto Hotel, banquets involving corporate dining events continued to increase, and revenue remained firm.」

「At Hotel Okura Kyoto, as social and economic activity recovered following the downgrading of COVID-19 under the Infectious Diseases Act, the number of banquets involving food and beverages increased and the number of events itself recovered to the same level as before the COVID-19 pandemic. However, events continue to be held more often with fewer attendees than before, so the hotel worked to secure profit by raising room rental and other fees.」

「Meanwhile, new visitors and bookings for wedding banquets remained sluggish, and the number of guests per event also continued to decline, leaving revenue under pressure.」

「During the cumulative third quarter under review, there were no material changes in the occurrence of the key risks that management recognizes as potentially having a material impact on the filing company's financial position, operating results or cash flows, among the matters concerning the business and financial conditions described in the quarterly report, or in the business and other risks described in the annual securities report for the previous fiscal year.」

「During the cumulative second quarter under review, there were no material changes in the occurrence of the key risks that management recognizes as potentially having a material impact on the filing company's financial position, operating results or cash flows, among the matters concerning the business and financial conditions described in the quarterly report, or in the business and other risks described in the annual securities report for the previous fiscal year.」

「At Hotel Okura Kyoto, as social and economic activity recovered, the number of banquets involving meals, such as celebration parties and receptions, increased, and the number of events itself recovered to the same level as before the COVID-19 pandemic. However, the hotel continues to take infection prevention and other considerations into account, and events are more often being held with fewer attendees than before.」

「At Hotel Okura Kyoto, as weddings and general banquets continued to be canceled or postponed amid the COVID-19 pandemic, the company strengthened web conferences, hybrid events such as lectures and wedding photography packages.」

「At Kyoto Hotel Okura, wedding banquets fell substantially below the previous fiscal year's revenue as the decline in new visitors to the hotel compared with prior periods had an impact.」

「Both wedding and general banquets continue to see substantial declines in the number of events and revenue due to smaller event sizes, postponements and cancellations.」

「At Kyoto Hotel Okura, wedding banquets fell substantially below the previous fiscal year's revenue as the decline in new visitors to the hotel compared with prior periods had an impact.」

「There were no newly arising business or other risks during the cumulative third quarter under review. In addition, there were no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「At Kyoto Hotel Okura, general banquets performed steadily due to increases in large MICE events and conference use. However, at wedding banquets, the number of events and guests declined, affected by an increase in competing hotels and an increase in people seeking weddings without using hotels, and revenue fell by ¥29 million year on year.」

「Meanwhile, the number of wedding banquets and the average number of guests declined substantially from the same period of the previous year, and revenue fell by ¥19 million year on year.」

「At Kyoto Hotel Okura, the number and average price of wedding banquets exceeded the previous year, but revenue fell below plan because the average number of guests declined as events became smaller. By contrast, general banquets substantially exceeded plan because the number of events increased, particularly large banquets and conference use, resulting in a significant increase in total banquet revenue.」

「At Kyoto Hotel Okura, the number of wedding banquets increased substantially. At general banquets, the number of events increased and the average number of guests also rose due to the holding of large-scale events. As the main banquet hall, Gyoun, had been closed for renovation in the previous year, revenue was ¥172 million higher than in the same period of the previous year. At Karasuma Kyoto Hotel, general banquets and conference use increased, and revenue was ¥31 million higher than in the same period of the previous year.」

「At Kyoto Hotel Okura, the average number of guests at wedding banquets declined as events became smaller, but the number of events increased substantially. At general banquets, large MICE events and conference use also increased, and revenue was ¥163 million higher than in the same period of the previous year, partly because the banquet facilities had been renovated in the previous year.」

「There were no newly arising business or other risks during the cumulative fourth quarter under review. In addition, there were no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「During the cumulative third quarter, no new business or other risks arose. In addition, there were no material changes in the business or other risks described in the annual securities report for the previous fiscal year.」

「During the cumulative second quarter, no new business or other risks arose. In addition, there were no material changes in the business or other risks described in the annual securities report for the previous fiscal year.」

「No new business or other risks arose during the cumulative first-quarter period. There were also no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「Other factors include a decline in corporate use due to weak corporate performance and a decline in the number of weddings associated with the declining birth rate.」