GREENS CO.,LTD.
6547・Standard Market・Services
GREENS CO.,LTD. (Hotel Business, Single Segment)
Nationwide rollout of "Choice Brand" and "Original Brand" as a domestic hotel-specialized operator
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (full-year FY2025, ended June 2025) | ¥49,645 million | ¥40,966 million | ↑ |
| Operating profit (full-year FY2025, ended June 2025) | ¥6,306 million | ¥5,021 million | ↑ |
| Net sales (H1 FY2026, ending June 2026) | ¥28,501 million | ¥25,279 million | ↑ |
| Operating profit (H1 FY2026, ending June 2026) | ¥5,334 million | ¥3,960 million | ↑ |
| Equity ratio (end of H1 FY2026, ending June 2026) | 39.0% | 34.6% | ↑ |
Business Details
The Group consists of the Company and its consolidated subsidiary Choice Hotels Japan Co., Ltd., operating as a dedicated hotel operator. It runs two brands: the "Choice Brand" (97 properties, 14,127 rooms), which develops limited-service hotels nationwide centered on the "Comfort" global brand of Choice Hotels International, Inc. of the United States, and the "Original Brand" (21 properties, 2,565 rooms), which develops city hotels and limited-service hotels tailored to regional characteristics mainly in Mie Prefecture and the Tokai region. The Group primarily adopts a "lease model" for hotel buildings, employing an asset-light model that limits asset risk. Its revenue strategy is centered on maximizing average room rates through Revenue Management and capturing inbound and leisure demand.
Recent Overview
In Q2 FY2026 (ending June 2026), net sales were ¥28,501 million and operating profit was ¥5,334 million, marking a significant increase in profit
For H1 FY2026 (ending June 2026) (July to December 2025), net sales were ¥28,501 million (up 12.7% year on year), operating profit was ¥5,334 million (up 34.7% year on year), and ordinary profit was ¥5,333 million (up 38.2% year on year). The Choice Brand performed well, with occupancy rate of 83.2% (up 1.9pt year on year) and average room rate of ¥11,203 (up 6.6% year on year). New openings included "Comfort Hotel Kii-Tanabe," "Comfort Hotel Mito," and "Comfort Hotel ERA Sapporo Kitaguchi." On the other hand, due to the resolution of tax loss carryforwards, corporate income taxes and other taxes increased, resulting in net income attributable to owners of the parent for the interim period of ¥3,521 million (down 8.0% year on year). The full-year earnings forecast remains unchanged at net sales of ¥53,200 million and operating profit of ¥6,500 million.
Key Products
Growth Drivers
- Continued expansion of inbound demand (in 2025, the number of foreign visitors to Japan surpassed a cumulative 20 million at the fastest pace on record)
- Net sales increase from the full-year contribution of Choice Brand RS (22 roadside properties)
- Continued increase in average room rates through enhanced Revenue Management (full-year FY2025, ended June 2025: ¥9,935, up 7.6% year on year)
- Accelerated new store openings (three properties in Mito, Sapporo Kitaguchi, and Chitose scheduled to open in FY2026, ending June 2026)
- Initiatives to raise awareness of leisure brands (Comfort Hotel ERA, Ascend Hotel Collection™)
Risks
- Risk of a decline in the number of Chinese guests due to deteriorating Japan-China relations (however, Chinese guests account for approximately 4% of the Company's total guests)
- Increased operating costs due to soaring energy and raw material prices
- Increased recruitment and operating costs due to rising labor costs and worsening labor shortages
- Pressure on net income due to increased corporate income taxes and other taxes following the resolution of tax loss carryforwards (full-year FY2026, ending June 2026 forecast: net income attributable to owners of the parent of ¥3,600 million, down 31.6% year on year)
- Uncertainty over the economic outlook due to trends in U.S. trade policy and geopolitical risks
Last updated: September 24, 2025