TOKYU CORPORATION
9005・Prime Market・Land Transportation
Business
Tokyu Corporation, founded in 1922, is the holding-company-like core entity of the Tokyu Group, with 130 subsidiaries and 41 affiliated companies. Building on its Transportation business, which operates a railway network of 9 lines spanning 110.7 km across southwestern Tokyo and Kanagawa Prefecture, the company operates four segments: real estate development, leasing, and management centered on the Shibuya area; Lifestyle Services including department stores, supermarkets, and cable TV; and Hotel & Resort Business, including 37 directly managed hotels and golf courses. Its main customers are residents along the rail line, inbound foreign visitors, and corporate tenants, with consolidated operating revenue reaching ¥1,086,179 million in FY2026 (ending March 2026).
Business Model
The company advocates a "long-term circular business model" that converts the stable passenger flow generated by railways into higher real estate value along its rail lines, and then recycles the resulting rental and sales income back into railway and community development investment. Building on the stable cash flow from the Transportation segment, it executes growth investments such as the large-scale redevelopment of the Shibuya area and overseas condominium sales. Lifestyle Services and hotels complement the brand value along its rail lines, forming a structure that creates a conglomerate premium through synergies across the group.
Company Strengths
Three major projects are being advanced concurrently: Shibuya Scramble Square Phase II (construction started May 2025, completion scheduled for FY2031), the Shibuya Upper West Project, and the Miyamasuzaka District redevelopment (union establishment approved April 2025). Real Estate segment assets reached ¥1,301,003 million, and rent revisions in the Shibuya area are proceeding at a pace exceeding inflation.
Tokyu Corporation Railways operates 9 lines in southwestern Tokyo and Kanagawa Prefecture, with passenger volume in FY2026 (ending March 2026) reaching 1,117,024 thousand passengers (up 3.1% year on year). Backed by the establishment of demand along the Tokyu Shin-Yokohama Line and population growth along its rail lines, a 2.4% increase is also projected for FY2027 (ending March 2027). Certification of the business plan for the new airport line (October 2025) has also given concrete shape to future network expansion.
Tokyu Hotels & Resorts (Directly Managed Hotel Operations) operates 37 directly managed properties, with the average room rate in FY2026 (ending March 2026) reaching a record ¥26,681 (up ¥2,761 year on year). In March 2026, the company became the first Japanese hotel chain to join the Global Hotel Alliance (GHA, with 34 million members), establishing a foundation for expanding its international customer base.
ENVALITH's Perspective
Performance Trend
Operating revenue rose for five consecutive periods, from ¥879,112 million in FY2022 to ¥1,086,179 million in FY2026 (up 3.0% year on year in FY2026). Operating profit was ¥103,193 million, down 0.3% year on year (mainly due to a decline following the prior period's real estate sales), but profit attributable to owners of parent reached a record high of ¥87,071 million (up 9.3% year on year). A substantial increase in equity in earnings of affiliates accounted for by the equity method (from ¥11,760 million to ¥23,920 million, including ¥6,653 million equivalent to negative goodwill related to Tokyu Real Estate Investment Corporation) pushed up ordinary profit. Comprehensive income was ¥109,966 million (revised), boosted by an increase in remeasurements of defined benefit plans. As an external factor, the continued expansion of inbound demand supported rapid growth in the hotel business.
Growth Strategy
With Shibuya redevelopment, the new airport line, overseas business, and inbound demand capture as pillars, the company aims to achieve EPS growth through ¥520.0 billion in investment over a three-year period
Following the opening of Shibuya Axsh, the company is steadily advancing the Shibuya Upper West Project, the Miyamasuzaka District redevelopment, and Shibuya Scramble Square Phase II. Through continuous accumulation of real estate leasing revenue, the company aims to strengthen the stable earnings base of the Real Estate business. Capital expenditure for the Real Estate business in FY2026 (ending March 2026) is planned at ¥65,910 million, a significant increase year on year.
Having received certification of the business concept for the New Airport Line (between Kamata Station and Keikyu Kamata Station), the company is promoting expansion of the wide-area rail network. By enhancing value along the line and capturing new demand, the company aims to strengthen the medium- to long-term earnings base of the Transportation business.
Focusing primarily on hotels in central urban areas, the company has concentrated efforts on capturing inbound demand, achieving an average room rate of ¥26,681 (up ¥2,761 year on year). Through value-enhancement investments in existing facilities, such as the renovation of Cerulean Tower Tokyu Hotel, the company aims to maintain and strengthen competitiveness. Operating profit for the Hotel & Resort Business in FY2026 (ending March 2026) is projected at ¥9,710 million, up 46.0% year on year.
Through additional acquisition of investment units in Tokyu REIT, Inc., the company began applying the equity method, recording equity in earnings of affiliates of ¥23,920 million (including negative goodwill equivalent of ¥6,653 million). The balance of investments in equity-method affiliates expanded to ¥235,160 million, strengthening the medium- to long-term investment earnings base.
The company continues to expand its overseas condominium sales business in Binh Duong New City, Vietnam. As a complement to the domestic Real Estate business, it aims to cultivate overseas revenue sources, diversifying geopolitical risk and achieving medium- to long-term earnings diversification.
Last updated: July 19, 2026