Hotel Business
Business Overview
Our Hotel Business operates 138 facilities with approximately 22,000 rooms (as of March 31, 2025) across Japan and internationally, including business hotels under the Dormy Inn brand, as well as resort hotels and Japanese-style hot spring inns under the Kyoritsu Resort brand. We have expanded our brand portfolio to meet diverse customer accommodation needs, including Onyado Nono, a Japanese-style premium brand designed for travelers while maintaining business hotel functionality, and La Vista, known for its exceptional views. At each facility, we provide distinctive services that go beyond conventional hotel norms—including natural hot spring public baths, cuisine prepared with local ingredients, and complimentary offerings such as our signature Yonaki Soba (late-night soba noodles)—in the constant pursuit of delivering relaxation and comfort to our guests.
Nationwide Locations (Dormy Inn Business)
Room Distribution by Area (Dormy Inn Business)
Room Distribution by Product (Dormy Inn Business)
Nationwide Locations (Resort Business)
Room Distribution by Area (Resort Business)
As of March 2025
Understanding Our Business Environment
Strengths
Differentiated brand strategy and added value
We have established a high-value-added brand position that prioritizes customer experience. By offering distinctive services such as business hotels equipped with natural hot springs and large public baths, our signature Yonaki Soba noodles, and breakfasts featuring locally sourced ingredients, we differentiate ourselves in the market.
Unique expertise and organizational culture built through synergies with our Dormitory Business
The resident-centric service philosophy cultivated through years of operating student and employee dormitories is directly reflected in our Hotel Business. We have elevated the “homestyle hospitality” inherent to our Dormitory Business into a refined hotel model, making the attentive approach of our on-site staff one of our greatest strengths.
Human resource development and organizational structure
We have built a framework that enhances on-site service quality through fair and standardized HR systems, on-the-job training, and well-defined career paths. By implementing tiered training, job-specific training, and e-learning systems, we have established a human resource development system where even those without prior experience can grow with confidence.
Operational efficiency and enhanced convenience through digital transformation (DX)
We are enhancing both customer convenience and profitability by focusing on reservation systems, smart check-in, and integrated database development. By centrally managing data on customers, facilities, and personnel for analysis and decision-making, we strengthen our strategic operational capabilities.
Stable Occupancy and Reservation Response Capacity Through Multi-site Operations
With 138 facilities nationwide (as of March 31, 2025), we have established a broad customer base that spans regional cities and hot spring destinations. Leveraging our nationwide sales, recruitment, and operational structures, we continue to deepen our presence in regional markets and reinforce our competitive advantages.
Challenges and Risks
- It is essential to further strengthen capabilities in cutting-edge technologies such as AI and IoT, as well as in recruitment and property development.
- Labor shortages due to declining working-age population and rising cost inflation.
- Economic recession stemming from global trade policy and exchange rate fluctuations.
- Fluctuations in travel demand due to increasingly severe natural disasters and extreme heat.
- Intensifying competition due to entry of overseas companies into the domestic market.
Opportunities
| Recovery and Expansion of Inbound Demand |
- Amid recovering inbound tourism following COVID-19, we are advancing strategies aimed at achieving an inbound ratio exceeding 30%.
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| Increased Supply Capacity Through New Openings and Facility Expansion |
- Expansion of locations and brand variations.
- Our plans target 20,000 rooms for the Dormy Inn Business and 5,500 rooms for the Resort Business.
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| Operational Efficiency Through DX and Labor-Saving Technology Introduction |
- By introducing smart check-in, automated payment machines, cleaning robots, and other technologies, we aim to enhance customer convenience and operational efficiency, addressing labor shortages and improving profitability.
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| Organizational Strengthening and Service Enhancement Through Human Resource Strategies |
- Through comprehensive training systems (such as conversion training and enhanced OJT) and flexible career path systems, we work to develop talent and reduce turnover, establishing a strong foundation for maintaining and improving service quality.
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