THE KYOTO HOTEL, LTD.
9723・Standard Market・Services
Kyoto Hotel Co., Ltd. (single segment: hotel management and related hotel operations)
A long-established hotel company operating two properties in Kyoto. A single segment centered on accommodation, banquets, and restaurants.
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (full year) | ¥9,772 million | ¥9,358 million | ↑ |
| Operating income (full year) | ¥1,108 million | ¥916 million | ↑ |
| Ordinary income (full year) | ¥916 million | ¥676 million | ↑ |
| Net income (full year) | ¥874 million | ¥771 million | ↑ |
| Operating margin | 11.3% | 9.8% | ↑ |
| Accommodation segment revenue | ¥4,249 million | ¥4,104 million | ↑ |
| Banquet segment revenue | ¥2,890 million | ¥2,584 million | ↑ |
| Restaurant segment revenue | ¥2,103 million | ¥2,129 million | ↓ |
| Other segment revenue | ¥528 million | ¥539 million | ↓ |
| Equity ratio | 20.2% | 16.0% | ↑ |
| Net assets per share | ¥200.43 | ¥134.29 | ↑ |
| Net income per share | ¥69.14 | ¥60.62 | ↑ |
| Cash and cash equivalents at period-end | ¥4,140 million | ¥3,477 million | ↑ |
| Interest-bearing debt balance (bonds + long-term borrowings) | ¥11,576 million | ¥12,100 million | ↓ |
Business Details
A leading Kyoto-based hotel operator founded in 1888. The company operates two properties, Hotel Okura Kyoto and Karasuma Kyoto Hotel, organized into four segments: accommodation, banquet, restaurant, and other (tenant leasing, fitness club, etc.). Its primary customer base consists of domestic tourists and inbound visitors, and it leverages the Okura Nikko Hotels membership network "One Harmony." The company is currently executing its Third Medium-Term Management Plan covering FY2026 (ending March 2026) through FY2028 (ending March 2028).
Recent Overview
Revenue and profit increased on strong inbound demand and large banquet bookings. Room renovations postponed due to Middle East tensions.
In FY2026 (ending March 2026), the company achieved revenue of ¥9,772 million (up 4.4% year on year), operating income of ¥1,108 million (up 21.0%), and ordinary income of ¥916 million (up 35.5%), with growth at every profit stage. The banquet segment led growth, up 11.8% year on year, while the accommodation segment also grew 3.5%. Meanwhile, the restaurant segment declined 1.2%. For FY2027 (ending March 2027), the company forecasts revenue of ¥9,700 million (down 0.7% year on year), operating income of ¥800 million (down 27.8%), and net income of ¥400 million (down 54.2%), a significant projected decline in earnings. The company resolved to postpone room renovations at Hotel Okura Kyoto for the time being, citing instability in materials procurement due to Middle East tensions (resolution dated May 7, 2026).
Key Products
Growth Drivers
- Continued capture of inbound demand backed by a record-high number of foreign visitors to Japan (42.68 million in 2025, up 15.8% year on year)
- Higher unit prices and expanded revenue in the banquet segment through active acquisition of overseas group travel business including MICE (meetings, incentives, conferences, and exhibitions)
- Securing stable accommodation demand through the Okura Nikko Hotels membership program "One Harmony"
- Improved profitability through sales measures aimed at raising room rates
- Expected improvement in occupancy rate in FY2027 (ending March 2027) from lifting sales restrictions following the postponement of room renovations at Hotel Okura Kyoto
- Securing talent and reducing employee turnover through three consecutive years of wage increases and enhanced benefits, supporting maintained and improved service quality
Risks
- Risk of fluctuations in the number of foreign visitors to Japan due to geopolitical risks (Middle East tensions, earthquake rumors, etc.); inbound demand temporarily declined due to a major earthquake rumor in July 2025
- Increased costs from rising energy prices, raw material prices, and labor costs (interest expense increased from ¥164 million in the prior period to ¥205 million in the current period)
- Interest rate risk associated with bank borrowings (elevated interest-bearing debt balance of ¥11,576 million)
- Decline in attendance per wedding banquet event due to structural shrinkage of the wedding banquet market
- Sluggish sales in the restaurant segment due to continued operating restrictions at some outlets and a decline in breakfast users
- Significant decline projected in earnings for FY2027 (ending March 2027) (net income forecast down 54.2% year on year to ¥400 million), raising the risk of reduced capacity to absorb rising costs
- Risk that the postponement of room renovations at Hotel Okura Kyoto delays addressing facility aging, alongside uncertainty in the materials procurement environment
Last updated: June 26, 2026