The focus will be on the one-time loss from the hotel sale and the earnings structure after the exit.

According to reports dated 1 September 2026, Daiwa plans to transfer all shares in its consolidated subsidiary Kanazawa New Grand Hotel to a third party, with the transfer scheduled for 1 October 2026. The agreement covers not only the shares but also the loan receivable, while the transfer price and the carrying amounts of the shares and receivable have not been disclosed. Meanwhile, the company is reportedly expected to record a special loss of approximately ¥1 billion, including a loss on the transfer of the receivable, in its FY2027 consolidated accounts. The FY2027-H1 disclosure will therefore be important for separating performance before the sale from the accounting treatment after the sale.

In FY2026, the consolidated hotel segment recorded revenue of ¥1,152.737 million and a segment loss of ¥28.087 million. The company also recorded an impairment loss of ¥1,967.06 million on the hotel subsidiary’s fixed assets, resulting in a consolidated net loss of ¥1,132 million. According to media reports, the hotel itself recorded revenue of ¥1,236 million and operating profit of ¥9 million, but an ordinary loss of ¥28 million, a net loss of ¥1,634 million and negative net worth. The transfer can therefore be viewed not simply as a business sale, but as a measure to remove a long-running loss-making business and its financial burden from the consolidated group.

In FY2027 Q1, hotel revenue was ¥310.059 million and segment profit was ¥11.774 million, up 2.5% and 24.1%, respectively, year on year. The hotel business is therefore highly likely to be included for part of FY2027-H1 through the end of August, making it necessary to review lodging and banquet demand and profit levels before the transfer. Key issues will include whether the date of the transfer agreement, the timing of deconsolidation and the timing of recognition of the transfer loss will be reflected in FY2027-H1 results or only in the full-year results.

The current FY2027 full-year forecast is revenue of ¥16 billion, operating profit of ¥250 million, ordinary profit of ¥150 million and net profit attributable to owners of the parent of ¥100 million. The expected special loss of approximately ¥1 billion is 10 times the net profit forecast, so it will be necessary to confirm whether the forecast already incorporates the sale loss or is premised on a future revision. In H1, the key disclosures to track will be material subsequent events relating to the hotel sale, the amount of the special loss, the collection and transfer terms for the loan receivable, and specific measures to concentrate management resources on the department-store business after the exit.