HOTEL NEW GRAND CO.,LTD (9720) Stock Price

Hotel New Grand Co., Ltd. is a hotel management company based in Yokohama. The company's core business is operating the historic Hotel New Grand, providing accommodation services and food and beverage facilities. It also operates a real estate rental business, establishing a stable revenue foundation.

The company's primary customers include hotel guests, wedding and banquet users in its hotel business, and restaurant patrons at Takashimaya Yokohama and Sogo Yokohama department stores. Revenue is generated through a combination of hotel-related income—including room rates, food and beverage sales, and wedding and banquet revenue—as well as rental income from office buildings and other properties.

The company operates two main business segments. The hotel business provides accommodation and food and beverage services at the main building, as well as restaurant operations within external commercial facilities. The real estate rental business manages owned office buildings and similar properties, functioning as a stable revenue source separate from hotel operations.

Hotel New Grand is pursuing improved profitability and sustainable growth through a three-pillar management strategy: human resources strategy, brand strategy, and growth strategy. Facing challenges including severe labor shortages and increased competition from new hotel openings, the company has established a policy to strengthen its operational foundation through these strategies. As preparation for its 100th anniversary opening in 2027, the company plans to steadily advance each strategy.

In its human resources strategy, the company is making active investments to secure talented employees. Through wage increases and improvements to personnel systems, Hotel New Grand aims to enhance work motivation and productivity, while establishing a framework to fairly evaluate and compensate personnel with advanced skills and expertise. The company is particularly strengthening initiatives to promote women's advancement and support work-life balance for employees with childcare responsibilities, while pursuing efficiency and labor savings through business digitalization to address labor shortage challenges.

In its brand strategy, the company emphasizes differentiation by leveraging its competitive advantages as a classic hotel. With new luxury-class hotel supply expected to expand in the Yokohama area over the coming years, Hotel New Grand is deploying services that balance tradition and innovation, drawing on its community-rooted strengths cultivated since opening. The strategy aims to enhance brand value and expand the customer base through providing high-value-added products and services that deliver "surprise and delight."

In its growth strategy, the company plans capital investments and business expansion to strengthen competitiveness. The company intends to renovate guest rooms in its main building showing signs of aging, and positions S-WILE, its external sales business, as a future growth business with plans to expand investment. Through these investments, as business recovery and financial health improvements progress, the company aims to further enhance its ability to attract customers.