(4691) Stock Price

Washington Hotel operates primarily in the hotel business, running two main brands: "Washington Hotel Plaza" and "Washington R&B Hotel." These hotels provide comfortable and safe accommodations for business travelers and tourists. The company also operates restaurants within golf club clubhouses.

"Washington Hotel Plaza" is located near major stations and commercial districts, offering diverse room types including single, twin, and double rooms. Breakfast features local cuisine made with regional ingredients. As of March 31, 2025, the company directly operates 18 hotels, with some facilities including restaurants and banquet halls.

"Washington R&B Hotel" is a lodging-focused brand with 25 hotels nationwide, primarily in major metropolitan areas. It operates with efficient, lean staffing and offers competitively priced accommodations. Room types center on single rooms, with newly added twin and connecting rooms to meet diverse customer needs.

The majority of Washington Hotel's revenue comes from these two hotel brands. For the fiscal year ending March 2025, the company-wide average daily rate (ADR) was 7,806 yen, occupancy rate was 68.1%, and revenue per available room (RevPAR) was 5,314 yen. Revenue from golf clubhouse restaurants is minimal.

Washington Hotel operates "Washington Net," a hotel booking website that strengthens room sales through the internet. Through its membership system, the company builds loyalty among repeat customers by offering point rewards and benefits. Washington Net has 500,000 members and handles 400,000 room-nights annually.

For new openings, the company applies strict criteria and selects prime locations to ensure high profitability. It aims to expand to major cities nationwide, developing hotels in the 200–300 room range. The company offers four development formats—owned properties, building leases, land leases, and management contracts—and actively gathers market information.

Washington Hotel operates under the management philosophy of "making travelers and employees happy through safe, clean, and friendly, reasonably-priced hotel services." Under this philosophy, the company aims to maintain high profitability and enhance corporate value.

As part of its growth strategy, Washington Hotel targets an operating profit margin of 11.5% for the fiscal year ending March 2026. The company aims to improve this margin by increasing revenue through new openings and renovations, while controlling and streamlining expenses.

Washington Hotel prioritizes enhancing its product offerings. Specifically, the company is conducting major renovations of Washington R&B Hotel, including adding new twin rooms and expanding connecting rooms. It is also strengthening sales of food items and menus for international guests.

Strengthening sales promotion is another key strategy. To increase brand awareness of "Washington R&B Hotel" and "Washington Net," the company is intensifying sales activities with domestic and international travel agencies and expanding participation in travel exhibitions. The company is also advancing digital marketing initiatives.

To improve profitability, Washington Hotel is evolving its revenue management for accommodations to increase RevPAR. In response to rising operating costs, the company is addressing this through appropriate price adjustments and quality improvements.

The company is also expanding "Washington Net." It is increasing membership through regular campaigns and web promotions, and promoting member usage by enhancing reservation convenience.

Securing and developing talent is also a critical priority. The company is securing younger employees through resuming new graduate recruitment and strengthening mid-career hiring, while advancing employee development through video training curricula and selective, level-based training programs.