Toyoko-Inn Co.,Ltd (E32745) Stock Price

Tokyu Inn is a hotel operating company specializing in accommodation services, operating business hotels under the "Tokyu INN" brand nationwide. Since its establishment in 1986, the company has expanded its business by providing clean, functional guest rooms at affordable prices, primarily serving business travelers on company trips and leisure travelers. As of March 2022, the company operates 333 hotels domestically and internationally, making it one of the largest business hotel operators in Japan by number of locations.

The company's primary customers are business professionals traveling on company trips and individual leisure travelers. Revenue is primarily generated from room rates, with the company ensuring profitability through efficient operations. The company emphasizes direct bookings through its web reservation system, providing seamless service from reservation to payment, thereby securing stable customer acquisition.

The company's business consists of business hotel-related operations and other operations. In addition to hotel management, the business hotel-related operations encompass a wide range of services through subsidiaries, including hotel construction, design supervision, planning and development, IT system development, and publication of in-room magazines. The company has expanded internationally into South Korea, the Philippines, and Mongolia, actively pursuing overseas growth. The group as a whole has established a comprehensive service structure specialized in accommodation services.

Tokyu Inn is implementing a strategy to build a foundation for full business recovery as the impact of COVID-19 subsides. The company has set a target of achieving 6 billion yen in pre-tax net income, with a prerequisite of realizing a 65% room occupancy rate. Amid the new lifestyle patterns of the with-COVID era and inflationary pressures, the company has positioned the reconstruction of competitiveness through new service offerings—not solely relying on its traditional low-price strategy—as a critical priority. Under its long-term vision of becoming "a company with strong brand power that will endure for 100 years," the company has established three new management principles: "providing customers with peace of mind and innovation," "enjoying business and pursuing work fulfillment," and "becoming a company respected by society."

In the area of technological innovation, the company is focusing on system investments that simultaneously enhance customer experience and improve operational efficiency. Through a complete overhaul of its reservation management system and the introduction of a site controller, the company is building a reservation system capable of responding quickly to market changes. Additionally, the introduction of automated check-in machines is planned to simultaneously improve customer convenience and reduce front desk workload. The company is also strengthening digital marketing to acquire new customers, and through these technology investments, it aims to differentiate itself from competitors.

Human resource recruitment and work style reform initiatives are also key components of the company's management strategy. In the service industry facing chronic labor shortages, the company is implementing comprehensive employment environment improvements, including a review of qualification and evaluation systems, workplace environment enhancements, introduction of diverse work arrangements, enrichment of training programs, and implementation of employee satisfaction surveys. Through these measures, the company is promoting the development of a rewarding workplace, aiming to secure stable human resources and improve employee retention rates.

On the financial front, the company is focusing on balancing price optimization strategy with financial soundness. While adjusting room rates to correct the decline in average room rates during the pandemic and address rising costs, the company plans to improve room rates through the introduction of new products and services with added value. Simultaneously, the company is accelerating early repayment of emergency loans through the sale of domestic and overseas real estate to secure credit lines, while maintaining a stable operational framework and applying strict cost-benefit verification to new store investments and strategic investments.