TOSHO CO.,LTD.

Toshoh Co., Ltd. upholds the corporate philosophy of "contributing to society and people through health promotion," and operates three businesses: the Sports Club Business ("Holiday Sports Club," 95 locations nationwide), the Hotel Business ("AB Hotel," 38 locations, 4,938 rooms), and the Real Estate Business (Rental Condominium "A・City," 51 buildings with 2,040 units, and 3 tenant buildings). Originating from the construction industry, the company is characterized by highly cost-effective business development leveraging its in-house construction and operational know-how for its own facilities. Its main customers are diverse, including adult members aged 16 and above (sports clubs), business travelers and inbound tourists (hotels), and singles and families (rental condominiums). While Aichi Prefecture serves as its home base, the company conducts business across 37 prefectures nationwide.

The Sports Club Business generates stable membership revenue through a monthly fee system, the Hotel Business maximizes room rates and occupancy through demand-linked pricing via revenue management, and the Real Estate Business consists of rental income from rental condominiums and tenant buildings. The company's in-house construction expertise, rooted in its origins as a construction company, helps contain capital expenditure costs, and each business sets an ordinary income margin of 35% or higher for a single store as the standard for its store-opening model. The stock-type revenues of the three businesses complement one another, forming a structure that generates stable cash flow.

In FY2026 (ending March 2026), net sales fell sharply to ¥27,595 million (down 22.5% year on year), reflecting a reversal from the prior period's large-scale real estate sale (Real Estate Business sales down 77.8% year on year). However, operating profit rose to ¥7,472 million (up 27.0% year on year), and the operating margin improved to a record-high level of 27.1% (versus 16.5% in the prior period). Contributing factors included the completion of monthly membership fee pass-through and labor-saving effects in the Sports Club Business, as well as an increase in average room rates driven by rising inbound demand in the market environment and revenue growth from two newly opened properties (up 15.2% year on year) in the Hotel Business. A sharp decline in impairment losses—from ¥1,596 million in the prior period to just ¥60 million—also contributed to the substantial increase in net profit (up 188.9%). Looking at the five-period trend, the company recovered for two consecutive periods from the loss recorded in FY2024 (net loss of ¥2,230 million), with FY2026 net profit reaching ¥3,549 million, the highest level in the past five periods.