IMPERIAL HOTEL, LTD.

Business Details

Centered on the Imperial Hotel Tokyo (Hibiya), the Imperial Hotel Osaka, Kamikochi Imperial Hotel, and the Imperial Hotel Kyoto, which opened in March 2026, the segment operates accommodation, restaurant, banquet, external sales, and contracted cafeteria services. By capturing inbound demand, corporate demand, and domestic individual demand and providing high-quality, high-value-added products and services, the segment secures earnings. In FY2026 (ending March 2026), revenue was ¥55,865 million and segment profit was ¥4,880 million.

Recent Overview

Increased revenue and profit driven by the Imperial Hotel Kyoto opening, Tower Building operation resumption, and Expo demand capture

On March 5, 2026, the Imperial Hotel Kyoto opened as the first new hotel in 30 years. At the Imperial Hotel Tokyo, the number of available rooms increased due to the phased resumption of operations at Tower Building rooms, and successful capture of inbound demand pushed the number of rooms sold above the prior year. At the Imperial Hotel Osaka, domestic and international demand associated with the Osaka-Kansai Expo was reliably captured. As a result, segment revenue increased 6.7% year on year to ¥55,865 million, and segment profit increased 4.8% year on year to ¥4,880 million. While making active human capital investments, including strengthened personnel recruitment ahead of the Imperial Hotel Kyoto opening, the company also worked to curb expenses through the promotion of digitalization.

Key Products

Growth Drivers

• Continued expansion of inbound demand (yen depreciation and the Osaka-Kansai Expo boosted demand, mainly in the first half)
• Creation of a new revenue source and expansion of the Imperial Hotel brand through the Imperial Hotel Kyoto (opened March 2026)
• Increase in available rooms and revenue maximization through the phased resumption of operations at Imperial Hotel Tokyo Tower Building rooms
• Improved profitability per transaction through the promotion of a high-unit-price sales strategy (banquet and accommodation divisions)
• Strengthened capture of domestic and international VIP and individual demand at Imperial Hotel Osaka
• Cost reduction and productivity improvement through DX promotion and digitalization
• Agile pricing policies and high-value-added product planning tailored to supply-demand fluctuations across the Tokyo Main Building, Kamikochi, Osaka, and Kyoto properties

Risks

• Risk of future reduction in operating scale associated with the Imperial Hotel Tokyo rebuilding plan (targeting commencement of Tower Building demolition work around the end of FY2030)
• Uncertainty regarding earnings contribution in the initial phase of the Imperial Hotel Kyoto opening, and increased opening costs and personnel recruitment costs
• Downward pressure on room occupancy rates due to the increase in available rooms accompanying the resumption of Tower Building operations
• Cost increase pressure from rising raw material and energy prices and ongoing wage increases and human capital investment
• Risk of a downturn in inbound demand due to travel restrictions stemming from deteriorating Japan-China relations and escalating tensions in the Middle East
• Risk of overseas economic downturn spilling over into inbound demand due to changes in global conditions (U.S. trade policy, geopolitical risk)
• Relative decline in hardware competitiveness due to the successive openings of competing new luxury hotels
• Continuation of the trend toward smaller-scale weddings and declining wedding counts