CVS Bay Area Inc.
2687・Standard Market・Services
Hotel Business
Core business operating business hotels, unit-type hotels, and an outdoor resort in Chiba and Tokyo
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment Revenue (Total Operating Revenue) | ¥630 million (Q1 FY2027, ending February 2027) | ¥639 million (Q1 FY2026, ending February 2026) | ↓ |
| Segment Profit | ¥106 million (Q1 FY2027, ending February 2027) | ¥63 million (Q1 FY2026, ending February 2026) | ↑ |
| Segment Profit Margin | 16.8% (Q1 FY2027, ending February 2027) | 9.9% (Q1 FY2026, ending February 2026) | ↑ |
| Segment Revenue (Full Year) | ¥2,224 million (FY2026, ended February 2026) | － | — |
| Segment Profit (Full Year) | ¥209 million (FY2026, ended February 2026) | － | — |
Business Details
In addition to operating two business hotel/unit-type hotel facilities (in Chiba Prefecture and Tokyo) under the proprietary brand "BAY HOTEL," the company opened the outdoor resort facility "THE FARM Slow Mountain Narita" in Narita City, Chiba Prefecture in March 2025. Located in an area concentrated with large theme parks, commercial facilities, arenas, and other venues, it captures a wide range of inbound, leisure, and business demand. This is a core segment accounting for approximately 31% of the Group's total operating revenue.
Recent Overview
Revenue declined slightly, but profit margin improved significantly, resulting in a 67.9% year-on-year profit increase
In Q1 FY2027 (ending February 2027) (March–May 2026), Hotel Business revenue was ¥630 million (down 1.4% year on year), a slight decrease, while segment profit improved substantially to ¥106 million (up 67.9% year on year). Continued events at nearby large theme parks and arenas expanded leisure demand, along with growing inbound demand, active acquisition of group accommodation demand, and maintenance of appropriate ADR levels, all of which contributed to improved profitability. "THE FARM Slow Mountain Narita" also saw improvement across all metrics—revenue, occupancy rate, ADR, number of guests, and profit—driven by various initiatives.
Key Products
Growth Drivers
- Securing stable foot traffic through proximity to large theme parks, commercial facilities, arenas, and other venues
- Expanding inbound demand and resilient domestic leisure demand
- Maintaining appropriate ADR (average daily rate) levels and improving profitability through agile pricing adjustments based on demand forecasting
- Maximizing revenue opportunities through sophisticated and accelerated sales control at unit-type hotels
- Raising awareness and acquiring new customers for "THE FARM Slow Mountain Narita" through strengthened digital marketing and PR initiatives
- Actively acquiring group accommodation demand from corporations, schools, and sports organizations
Risks
- Risk of failing to achieve revenue plans due to insufficient awareness of and sluggish reservations at the outdoor resort "THE FARM Slow Mountain Narita"
- Risk of rising labor and operating costs due to inflation and labor shortages
- Risk of breaching financial covenants in loan agreements with financial institutions (potential loss of the benefit of time)
- Risk of fluctuations in inbound and domestic accommodation demand (due to geopolitical risks, infectious diseases, etc.)
- Risk of ADR decline due to intensifying price competition with competing hotels
- Risk of increased operating costs due to rising crude oil prices, fuel costs, and logistics costs amid tensions in the Middle East and elsewhere
Last updated: May 26, 2026