Daiwa to exit the hotel business and sell Kanazawa New Grand Hotel to a U.S. investment fund on 1 October; presidency expected to change from Shoda (庄田) to a new president (Hokkoku Shimbun)

大和 announced on the 1st that it would transfer all shares of its consolidated subsidiary Kanazawa New Grand Hotel to a third party. This will end its more than 30-year hotel business, with the transfer scheduled for 1 October. The buyer is believed to be a company owned by a US investment fund. The hotel name and employment of current staff are expected to be maintained, and the hotel is expected to pursue a turnaround under a new operator. The company has 1.6 million shares outstanding and has agreed to transfer loan receivables in addition to the shares.

大和 said the decision was based on changes in the environment surrounding the hotel industry and the importance of specialized operating expertise and business investment needed for growth. It explained that operation under a company specializing in hotel management would lead to growth and stronger competitiveness. New Grand Hotel has reported net losses for 7 consecutive fiscal years due to the impact of the COVID-19 pandemic, earthquakes and an increase in nearby hotels. For the fiscal year ended February 2026, revenue was ¥1.236 billion and operating profit was ¥9 million, but the company posted an ordinary loss of ¥28 million and a net loss of ¥1.634 billion, leaving net assets in a state of insolvency.

In connection with the transfer, 大和 expects to recognize a special loss of approximately ¥1 billion, including a loss on the transfer of receivables, in its consolidated results for the fiscal year ending February 2027. Because the buyer's consent has not been obtained, the transfer price and the carrying amounts of the shares and receivables have not been disclosed, although the company says it has calculated a fair price. President Shoda Shoichi (庄田 正一) and others will leave office, and personnel from the buyer are expected to assume the successor positions.