TKP Corporation
3479・Growth Market・Real Estate
Space Regeneration & Distribution Business
A one-stop space service business utilizing underused real estate for rental conference rooms, hotels, and food & beverage.
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment sales (cumulative first quarter) | ¥15,089 million | ¥12,512 million (same period of prior year) | ↑ |
| Segment profit (cumulative first quarter) | ¥2,305 million | ¥2,008 million (same period of prior year) | ↑ |
| Sales per effective tsubo (first quarter average) | ¥50,902 | ¥48,924 (same period of prior year) | ↑ |
| Number of accommodation facilities (first quarter average) | 33 facilities | 27 facilities (same period of prior year) | ↑ |
| RevPAR (first quarter average) | ¥8,653 | ¥8,974 (same period of prior year) | ↓ |
| Rental conference room fees (cumulative first quarter) | ¥5,639 million | ¥4,685 million (same period of prior year) | ↑ |
| Accommodation sales (cumulative first quarter) | ¥4,068 million | ¥3,309 million (same period of prior year) | ↑ |
Business Details
The business leases and repurposes underused real estate, offering a nationwide one-stop service spanning Flexible Space (Rental Conference Rooms / Shared Offices), hotels, Food & Beverage / Banquet, and Event Production / BPO. It captures demand from companies and organizations for meetings, training, networking events, and accommodation, and employs structures such as variable rent contracts with property owners to enhance profitability while limiting occupancy-rate risk. This has been the core segment of the TKP Group since its founding, accounting for approximately 44% of group sales.
Recent Overview
Both sales and profit grew by double digits year on year, with hotel sales reaching a record high.
In the first quarter of FY2027 (ending February 2027) (March-May 2026), sales in the Space Regeneration & Distribution Business were ¥15,089 million (up 20.5% year on year), and segment profit was ¥2,305 million (up 14.8% year on year). Hulic Biz Frontier (now TKP Biz Office) was consolidated as a subsidiary, building a collaborative structure with the rental office brand "CROSSCOOP." The Hotel & Accommodation Training business newly opened APA Hotel franchises in Toyama and Himeji, bringing the total to 33 facilities, with sales reaching a record high. Sales per tsubo improved to ¥50,902, up ¥1,978 year on year, achieving both area expansion and higher unit prices simultaneously. RevPAR declined ¥321 year on year, reflecting the ramp-up effect of newly opened facilities.
Key Products
Growth Drivers
- Increased demand for rental conference rooms and training amid the return to face-to-face communication and companies' continued rising investment in human capital
- Expansion of the Hotel & Accommodation Training business through continued inbound demand and sustained high occupancy and unit prices at new and existing facilities
- Increase in food & beverage sales driven by solid demand for networking events accompanied by dining
- Expansion of effective floor area through aggressive new store openings and expansions (achieving both higher sales per tsubo and area growth)
- Strengthened collaboration among the rental office brand "CROSSCOOP," fabbit, and TKP's long-term rental conference room leasing through the consolidation of Hulic Biz Frontier (TKP Biz Office) as a subsidiary
- Creation of synergies through collaboration with group companies (Lilycolor, On The Page, etc.)
Risks
- Risk of rent burden on fixed-rent properties in the event of declining occupancy rates
- Increasing upfront investment burden from security deposits and guarantee money associated with new store openings and expansions
- Rising operating costs due to inflation and increased energy costs
- Increased borrowing costs due to rising interest rates (with the impact expanding against a backdrop of growing long-term borrowings)
- Risk of RevPAR decline associated with the ramp-up of newly opened hotel facilities
- Risk of reduced corporate activity due to uncertainty in overseas economies or deterioration in the domestic economy
Last updated: May 29, 2026