WASHINGTON HOTEL CORPORATION
4691・Standard Market・Services
Business
Washington Hotel Plaza (Washington Hotel Corporation) has operated hotels since opening its first Washington Hotel in 1969, and currently operates 43 hotels nationwide with a total of 9,435 rooms under two brands: "Washington Hotel Plaza" (18 directly managed hotels) and "Washington R&B Hotel" (25 directly managed hotels). Properties are primarily located near major stations and downtown areas, targeting a broad customer base ranging from business travelers to tourists and inbound visitors. The company operates in the Hotel Business (Single Segment), with lodging revenue accounting for 98.5% of net sales. It is listed on the Tokyo and Nagoya Stock Exchanges and is headquartered in Nagoya City, Aichi Prefecture.
Business Model
The company adopts a lodging-specialized model that derives the majority of revenue from guest room sales. Its store formats consist of 7 owned properties, 34 building-lease properties, and 2 land-lease properties, keeping initial investment low through a lease-centered approach. Room sales via the internet account for 75.4%, and the structure aims to reduce OTA commission costs by increasing the direct-booking ratio through its proprietary reservation site, Washington Net (with 617,000 members). Fixed costs are managed through a combination of small-scale staffing operations and outsourcing, while revenue management is used to maximize unit prices.
Company Strengths
The company operates 43 hotels across eight regions nationwide, from Hokkaido to Kyushu, diversifying dependence on any single region. In FY2026 (ending March 2026), overall occupancy rate was 71.7% (+2.6pt year on year), ADR was ¥8,649 (+10.8% year on year), and RevPAR was ¥6,200 (+15.0% year on year), with key KPIs improving in tandem. By region, sales in Kinki showed the largest increase at +28.0% year on year, while Kyushu, Tohoku, and other regions also achieved revenue growth.
Leveraging a high point-return rate of 7% on accommodation charges with no membership fee or annual fee, membership reached 617,000 as of the end of March 2026 (+112,000 from the start of the period). Approximately 430,000 room-nights per year are booked through the site, with Washington Net accounting for 17.8% of total sales channels. It functions as a direct-sales platform that reduces dependence on OTAs and lowers sales costs.
The company is systematically implementing full-hotel renovations under the concept of "sleep, bathing, and breakfast." Between July 2024 and April 2025, renovations were completed at four properties (Otsuka Ekikita, Kumamoto, Kyoto Ekihachijoguchi, and Umeda Higashi), improving profitability. Of the FY2026 (ending March 2026) capital expenditure of ¥1,576,471 thousand, the majority was related to renovations, and the diversification of room configurations is also progressing, including the addition of connecting rooms at eight properties.
ENVALITH's Perspective
Performance Trend
FY2022 (ending March 2022) marked the pandemic-era trough, with net sales of ¥8,548 million and an operating loss of ¥3,244 million. Since then, the company has recovered sharply, and in FY2026 (ending March 2026) it posted record-high results with net sales of ¥24,193 million, operating income of ¥3,818 million, and net income of ¥3,027 million. The operating margin improved significantly to 15.8% (from 10.5% in the prior period). While external tailwinds such as expanding inbound demand and the effect of the Osaka-Kansai Expo have supported this growth, the company's own efforts—strengthening revenue management, renewal investments, and expanding direct sales channels—have driven the improvement in profitability. Note that, following the correction to the earnings report (kessan tanshin) in May 2026, borrowings of ¥7,613 million were reclassified to current liabilities, and this change in financial structure also warrants attention.
Growth Strategy
Continuously raise RevPAR through renewals, revenue management, and expansion of direct sales
Completed full renewals at four hotels in total: Otsuka Ekikita, Kumamoto, Kyoto Ekihachijoguchi, and Umeda East. Improved room quality to raise ADR and improve profitability. The performance contribution from the renewed hotels is supporting margin improvement in FY2026 (ending March 2026).
Strengthening revenue management centered on rate optimization during peak periods, aiming for continuous improvement in RevPAR. Cumulative RevPAR through Q3 achieved a year-on-year increase of +18.1%, confirming the effectiveness of these measures.
By expanding membership (588 thousand members) in the proprietary reservation site "Washington Net" and increasing the direct booking ratio, the company aims to curb OTA commission fees and improve profit margins. Continued expansion of the membership base strengthens the advantage of the sales cost structure.
Promoting the addition of connecting rooms and twin rooms aimed at capturing multi-person guests. Achieved a cumulative Q3 room occupancy rate of 74.3% (up 3.9pt year on year), reflecting the effect of room mix optimization.
Last updated: July 19, 2026