ABHOTEL CO., LTD.
6565・Standard Market・Services
Hotel Business (Single Segment)
Accommodation-focused business hotel operations nationwide under the "AB Hotel" brand
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales | ¥12,293 million | ¥10,679 million | ↑ |
| Operating profit | ¥4,892 million | ¥3,962 million | ↑ |
| Ordinary profit | ¥4,830 million | ¥3,908 million | ↑ |
| Net income | ¥3,143 million | ¥2,542 million | ↑ |
| Operating margin | 39.8% | 37.1% | ↑ |
| Ordinary profit margin (key KPI) | 39.3% | 36.6% | ↑ |
| Average occupancy rate of 34 existing hotels | 84.7% | 87.7% (down 3.0 points year on year) | ↓ |
| Number of hotels operated | 38 hotels | 36 hotels | ↑ |
| Number of rooms | 4,938 rooms | 4,804 rooms | ↑ |
| Equity ratio | 53.2% | 48.5% | ↑ |
| Net assets per share | ¥1,101.14 | ¥899.37 | ↑ |
| Net income per share | ¥221.77 | ¥179.36 | ↑ |
| Operating cash flow | ¥4,531 million | ¥3,277 million | ↑ |
| Cash and cash equivalents at end of period | ¥7,711 million | ¥5,920 million | ↑ |
| Interest coverage ratio | 47.2x | 42.5x | ↑ |
| Cash flow to interest-bearing debt ratio | 2.2 years | 3.2 years | ↑ |
Business Details
Operating under the concept of "Amenity & Bright," the company develops accommodation-focused hotels targeting primarily business travelers. All hotels are equipped with large communal baths, and the company employs an efficient operating structure without banquet halls or meeting rooms. By carefully selecting locations with stable demand near train stations and major interchanges, the company operates 38 hotels nationwide with 4,938 rooms (as of the end of March 2026), centered on Aichi Prefecture. The company maintained a highly profitable structure with net sales of ¥12,293 million, an operating margin of 39.8%, and an ordinary profit margin of 39.3%, with all major profit and loss indicators reaching record highs.
Recent Overview
All major profit and loss indicators reached record highs, achieving increased revenue and profit for the second consecutive fiscal year
In FY2026 (ending March 2026), net sales were ¥12,293 million (up 15.1% year on year), operating profit was ¥4,892 million (up 23.5%), ordinary profit was ¥4,830 million (up 23.6%), and net income was ¥3,143 million (up 23.6%), with all indicators reaching record highs. While increased inbound demand centered on the Kansai region and higher average room rates contributed to results, the average occupancy rate of the 34 existing hotels was 84.7% (down 3.0 points year on year) due to occupancy rate optimization. The company opened "AB Hotel Echizen Takefu," its first hotel in Fukui Prefecture, in September 2025, and "AB Hotel Inuyama," its 15th hotel in Aichi Prefecture, in February 2026, expanding the number of hotels operated to 38 with 4,938 rooms. During the period, the company recorded an impairment loss of ¥59 million as an extraordinary loss. The year-end dividend for FY2026 (ending March 2026) totals ¥34 (versus ¥20 in the prior period), comprising an ordinary dividend of ¥24 plus a special dividend of ¥10 associated with the resolution of the dual listing. The full-year forecast for FY2027 (ending March 2027) calls for net sales of ¥12,800 million, operating profit of ¥5,100 million, ordinary profit of ¥5,000 million, and net income of ¥3,150 million.
Key Products
Growth Drivers
- Increased average room rates driven by expanding inbound demand (particularly in the Kansai region) and greater exposure through overseas OTAs
- Passing increased costs through to appropriate pricing and maximizing revenue through improved precision in revenue management
- Expansion of the number of hotels and rooms through new openings (continuing new development with a target of three or more new hotels per year, with additional openings planned for FY2027 (ending March 2027))
- Improved operational efficiency and reduced fixed costs through expansion of hotels with in-house cleaning operations
- Continued solid demand from business travelers and high occupancy rates in the business hotel industry (65.5% in January 2026, 73.8% in February 2026)
- Ongoing capacity for capital investment supported by a strong financial foundation, with an equity ratio of 53.2% and an interest coverage ratio of 47.2x
Risks
- Continued cost pressure from rising labor costs and energy prices (labor costs included in cost of sales increased 46.3% year on year to ¥982 million)
- Sustained high costs for supply-constrained construction materials and consumables amid prolonged geopolitical risk
- Foreign exchange and interest rate volatility risk associated with shifts in domestic and overseas monetary policy (interest expense increased from ¥76 million in the prior period to ¥95 million in the current period)
- Risk of declining occupancy rates as domestic accommodation demand stabilizes (occupancy rate at the 34 existing hotels down 3.0 points year on year to 84.7%)
- Risk of increased capital investment funding needs and expanding borrowings associated with new hotel openings (long-term borrowings balance of ¥7,133 million)
- Risk of shifts in demand structure due to changes in the inbound customer base, including a significant decline in guests from China
- Risk of impairment losses (¥59 million recorded in the current period)
Last updated: June 19, 2026