Intensifying competition from new hotels, renovations of existing hotels and private lodging

「During the interim accounting period, there were no material changes in the occurrence of principal risks that management recognizes as potentially having a material impact on the company’s financial position, operating results and cash flows, or in the business risks described in the annual securities report for the previous fiscal year.」

「In Kyoto, the competitive environment has become increasingly intense, with a succession of new hotel openings and renovations even during the COVID-19 pandemic, and further efforts underway to attract luxury hotels.」

「At Hotel Okura Kyoto, banquet revenue increased substantially in the previous year following the end of the COVID-19 pandemic, creating a temporary surge in demand. However, the number of events fell substantially because of the reaction to that surge, intensified competition from other hotels in the city, and cancellations caused by an approaching typhoon.」

「During the cumulative first 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 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.」

「At Hotel Okura Kyoto, the company sought to increase revenue by regularly reviewing room prices and taking other measures to raise room occupancy. However, revenue declined year on year due to the impact of price competition with competitors.」

「At Hotel Okura Kyoto, competing hotels that had been closed the previous year were operating for most of the current period, creating a challenging situation in which hotels competed fiercely for a limited number of guests through price competition.」

「Competing hotels that had been closed during the same period of the previous year operated for most of the current period, intensifying competition through continued operations and leaving the company in a position where it had to lower its price range.」

「In Kyoto's hotel industry, competition has intensified due to the wave of new hotel openings. In addition, amid a succession of cancellations of accommodation and banquet bookings following requests from the government and local authorities to refrain from going out and requests to close businesses under states of emergency declared as measures to prevent the spread of COVID-19, the company was forced to implement temporary closures and shorten operating hours.」

「Excessive competition has begun in Kyoto due to oversupply resulting from the wave of new hotel openings.」

「Meanwhile, the wave of hotel construction and openings has accelerated, with signs of worsening competition and demand appearing in lower room occupancy rates and room rates in the accommodation business, as well as a downward trend in banquet spending per customer and the number of bookings, reportedly due in part to the consumption tax increase.」

「At Karasuma Kyoto Hotel, the wave of new hotel openings in nearby areas reduced the number of guests staying through domestic travel agencies, causing revenue to fall ¥16 million year on year.」

「Meanwhile, the wave of hotel construction and openings continues, raising concerns about its impact on the supply-demand balance.」

「In Kyoto’s hotel industry, although a series of major natural disasters occurred during the summer, foreign tourists visiting Japan subsequently continued to increase and support demand, allowing the industry to maintain strong performance. Meanwhile, the trend of new hotels entering the market remained unchanged, and the competitive environment became increasingly intense.」

「In Kyoto’s hotel industry, the market environment became increasingly competitive due to a rush of hotel construction and the emergence of private lodging facilities, while the rising trend in the number of visitors to Kyoto was halted by heavy rains in early July and a succession of typhoons thereafter.」

「In Kyoto's hotel industry, domestic demand remained stable and inbound tourism continued to perform well, while the competitive environment became increasingly challenging due to the wave of hotel construction in Kyoto and the emergence of private lodging.」

「In Kyoto's hotel industry, the accommodation business continued to perform well, supported by an increase in visitors to Japan, particularly from Asia. However, the competitive environment has become increasingly challenging due to the increased supply of rooms from new hotel openings and the emergence of private lodging.」

「In Kyoto's hotel industry, the competitive environment has become increasingly challenging due to the opening of new hotels, renovations of existing hotels and the spread of private lodging. Nevertheless, the accommodation business remained firm, supported by strong inbound demand.」