WASHINGTON HOTEL CORPORATION
4691・Standard Market・Services
Hotel Business (Single Segment)
Business and tourism-oriented hotel business operating 43 hotels and 9,481 rooms domestically
| Period | Current | Previous | Change |
|---|---|---|---|
| Net Sales (Full Year, FY2026 (ending March 2026)) | Year-on-year increase (full-year figures are not subject to correction; the most recent disclosed value is cumulative Q3 sales of ¥18,959 million) | Cumulative Q3 (same period prior year) equivalent to ¥16,318 million | ↑ |
| Current Portion of Long-Term Borrowings (Post-Correction, as of March 31, 2026) | ¥8,613 million | ¥1,000 million (pre-correction) | ↑ |
| Long-Term Borrowings (Post-Correction, as of March 31, 2026) | ¥5,000 million | ¥12,613 million (pre-correction) | ↓ |
| Total Current Liabilities (Post-Correction, as of March 31, 2026) | ¥11,630 million | ¥4,017 million (pre-correction) | ↑ |
| Total Non-Current Liabilities (Post-Correction, as of March 31, 2026) | ¥10,518 million | ¥18,131 million (pre-correction) | ↓ |
| Total Liabilities (as of March 31, 2026) | ¥22,148 million | ¥24,099 million (prior fiscal year) | ↓ |
| Occupancy Rate (Cumulative Q3) | 74.3% | 70.4% (same period prior year) | ↑ |
| ADR (Cumulative Q3) | ¥8,679 | Increase year-on-year | ↑ |
| RevPAR (Cumulative Q3) | ¥6,448 | +18.1% year-on-year | ↑ |
Business Details
Nationwide operations under two brands: "Washington Hotel Plaza" (18 directly-operated hotels) and "Washington R&B Hotel" (25 directly-operated hotels). The primary customer base consists of business, tourism, and inbound travelers, with the value proposition being safe, clean, and comfortable accommodations at reasonable price points. The two hotel brands account for 98% of sales, with the remainder consisting of contracted operation of restaurants within golf course clubhouses.
Recent Overview
Corrected the balance sheet presentation classification in the FY2026 (ending March 2026) financial results report; liquidity risk has become apparent
On May 29, 2026, the company corrected the financial results report for FY2026 (ending March 2026) announced on May 14, 2026. Borrowings of ¥7,613 million under a syndicated loan agreement, due for repayment in March 2027, were reclassified from "long-term borrowings" under non-current liabilities to "current portion of long-term borrowings" under current liabilities. As a result, total current liabilities were revised from ¥4,017 million to ¥11,630 million, and long-term borrowings were revised from ¥12,613 million to ¥5,000 million. There is no impact on net assets or profit/loss; this is solely a change in presentation classification. However, the fact that ¥8,613 million in borrowings will come due for repayment within one year is an important matter for liquidity management.
Key Products
Growth Drivers
- Expansion of inbound demand (a record 42.68 million foreign visitors to Japan in 2025) and demand uplift in the Kinki region and elsewhere driven by the Osaka-Kansai Expo
- Improved profitability and ADR increases at hotels where full renovations have been completed (4 hotels in total: Otsuka Station North Exit, Kumamoto, Kyoto Station Hachijo Exit, and Umeda East)
- Enhanced revenue management strengthening rate optimization during peak periods and improving RevPAR (cumulative Q3 RevPAR up 18.1% year-on-year)
- Expansion of Washington Net membership (588,000 members) and increased direct sales ratio reducing sales costs
- Increased occupancy rate (74.3% cumulative Q3, up 3.9 points year-on-year) through capturing multi-person usage via addition of connecting rooms and twin rooms
Risks
- Refinancing risk and liquidity management risk related to ¥8,613 million in borrowings (post-correction, current portion due within one year) maturing for repayment in March 2027
- Interest rate increase risk affecting overall interest-bearing debt, including the long-term borrowings balance (¥5,000 million post-correction)
- Risk of partial decline in inbound demand due to travel advisory requests issued by the Chinese government (from November 2025 onward)
- Risk of margin pressure from rising operating costs including raw material costs, labor costs, and utility costs
- Impact of continued price inflation on personal consumption and domestic leisure demand
- Temporary loss of revenue opportunity due to rooms becoming unavailable for sale during full renovation construction
Last updated: June 19, 2026