THE KAMOGAWA GRAND HOTEL,LTD. (E04576) Stock Price

Kamogawa Grand Hotel is a hotel and resort operating company based in Kamogawa City, Chiba Prefecture. The company's core business is operating hot spring accommodations, with operations centered on lodging services in tourist destinations on the Boso Peninsula. In addition to its hotel business, the company also operates a laundry service, establishing an in-house system to provide services necessary for facility operations.

The company's primary customers include individual tourists, families, and corporate group guests, capturing lodging demand from visitors to beaches and tourist attractions on the Boso Peninsula. Revenue is primarily derived from room rates, banquet hall usage fees, and food and beverage services related to accommodations, resulting in a business structure that is highly susceptible to seasonal fluctuations.

The company's business segments are divided into three categories: hotel-related operations, resort-related operations, and laundry operations. Hotel-related operations provide lodging services and banquet and conference room facilities, while resort-related operations offer various services for tourists. The laundry operation primarily handles linen washing services necessary for hotel operations and contributes to business efficiency.

Kamogawa Grand Hotel is prioritizing the reconstruction of its financial foundation amid the severe business environment caused by COVID-19. The company has set securing an operating profit margin of 10% or higher as a key management indicator and aims to build a strong revenue base. The company's management policy is to establish itself as the top hotel in Chiba Prefecture and is working to improve performance through sincere service delivery based on its philosophy that "customers are cherished lifelong family members of our home."

As a core strategy, the company is focusing on product development that responds to changing customer needs during the COVID-19 pandemic. It is implementing detailed product offerings, including strengthening in-room dining plans and capturing school trip demand from within Chiba Prefecture and neighboring prefectures, to address limited demand. The company is also positioning thorough infection prevention measures and hygiene management as a key differentiator, providing a safe and secure accommodation environment.

To improve efficiency, the company is enhancing labor productivity through workforce restructuring and operational improvements. It is continuously reducing personnel and operational costs by utilizing various subsidy programs, including employment adjustment subsidies. Through these initiatives, the company is building a sustainable operating structure even in the challenging business environment.

In preparation for the future, the company is implementing revenue management initiatives and improving product competitiveness. It is establishing systems to maximize sales revenue and preparing for demand recovery after the COVID-19 pandemic subsides. In addition to these measures, the company is working to eliminate excess liabilities and has indicated its policy to recover medium- to long-term financial soundness.