Greens

Basic Information

Stock Code
6547
Industry
Service Industry
Category Detail
Travel & Hotels
Prefecture
Mie Prefecture
Establishment Year
January 1964
Listing Year
March 2017
Official Website
https://www.kk-greens.jp/
TSE Information
TSE Information
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Overview

Greens is a Tokyo Stock Exchange Standard-listed hotel chain operator based in Yokkaichi City, Mie Prefecture, established in 1964, engaged in hotels, restaurants, and real estate management.

Current Situation

Greens recorded consolidated sales of approximately 41 billion yen and operating profit of approximately 5 billion yen for the fiscal year ending June 2024, maintaining a stable revenue base in Japan's domestic hotel industry. Its core business is hotel operations, with multiple brands including Comfort Hotel deployed nationwide, continuing to grow. In 2022, it opened Comfort Hotel Yokkaichi within its head office building to strengthen facilities. It is accelerating expansion in regional cities through collaboration with its subsidiary Choice Hotels Japan. Financially, it maintains a sound position with net assets of approximately 7.8 billion yen and total assets of approximately 26.6 billion yen. In 2022, it received strategic investment from Star Asia, advancing new collaborations in capital and management. In the medium to long term, it is promoting a three-year plan aiming for an 8% increase in guest rooms, actively expanding higher-priced hotels. Characterized by regionally focused operations centered in Mie Prefecture, it plans further expansion into surrounding cities. It also focuses on sustainable operations, including energy-saving measures and community contributions, with stable growth expected.

Trivia

Interesting Facts

  • Founded in 1957 as the station-front inn 'Shin Yokkaichi Hotel'.
  • In 2022, adopted rare structure combining head office building and hotel in the same facility.
  • Largest hotel chain in Mie Prefecture.
  • 100% owns nationwide-deployed subsidiary Choice Hotels Japan.
  • Diversified operations including real estate management beyond hotels.
  • Rare company simultaneously listed on Tokyo and Nagoya Exchanges in 2017.
  • Received strategic investment from local company Star Asia, strengthening collaboration.
  • Many executives from founding family, supporting management stability.
  • Business deeply tied to Tokai region's local economy.
  • Aggressively expanding higher-priced brands to improve profitability.
  • Holds multiple hotel brands in Yokkaichi City, regionally focused.
  • Achieved sound management through long-term financial restructuring success.
  • Hosts numerous regional events and exhibitions in accommodation facilities.
  • Employs approximately 670 staff nationwide, contributing to local employment.
  • News on land-based aquaculture and solar power ventures gaining attention

Hidden Connections

  • Capital participation by Star Asia enables collaboration with real estate investment funds.
  • Subsidiary Choice Hotels Japan has track record of partnerships with overseas brands.
  • Advancing tourism promotion projects in collaboration with Yokkaichi city government.
  • Related companies in real estate management and construction leverage group synergies.
  • Key shareholders include management and founding family, ensuring management continuity.
  • Contributes to regional revitalization through regionally focused hotel expansion.
  • Limited foreign capital in shareholder composition, high regional economic integration.
  • Hotel Econo brand is a well-established favorite in local markets.

Future Outlook

Growth Drivers

  • Increasing accommodation demand in regional cities.
  • Broad customer acquisition through diverse price-range brands.
  • Strengthened investment base via capital alliance with Star Asia.
  • Tailwind from inbound foreign tourist recovery.
  • Revenue expansion through strategic openings of higher-priced hotels.
  • Operational efficiency via digitalization and IT utilization.
  • Growing customers valuing environmentally responsive operations.
  • Stable revenue from post-COVID corporate demand recovery.
  • Differentiation from competitors through regional focus.
  • Service enhancement via talent development addressing labor shortages.
  • Expanded tourism promotion effects through regional collaborations.
  • Revenue diversification through multi-segment businesses.

Strategic Goals

  • Increase nationwide hotel guest rooms by 20%.
  • Expand higher-priced brand sales ratio to over 30%.
  • Reduce CO2 emissions by 50% through environmental burden cuts.
  • Strengthen regional economic contributions to elevate social evaluation.
  • Achieve 15% cost reductions through digitalization efficiencies.
  • Resolve labor shortages via diverse talent recruitment.
  • Raise new and related business sales to 10% of total.
  • Continuously advance revenue growth with tourism demand recovery.
  • Promote brand recognition in major cities nationwide.
  • Strengthen capital policies to establish stable management base.

Business Segments

Accommodation Services for Corporate Clients

Overview
Provides optimized accommodation plans and facilities for companies and groups
Competitiveness
Flexible, regionally focused service deployment enhancing customer satisfaction
Customers
  • Corporate Travelers
  • Travel Agencies
  • Government and Municipalities
  • Event Organizers
  • Tour Operators
  • Educational Institutions
  • Group Tours
Products
  • Long-term Stay Plans
  • Group Discount Accommodation Services
  • Conference and Convention Facilities
  • Training Accommodation Plans
  • Corporate Contract Programs

Real Estate Management and Operations

Overview
Conducts real estate management and leasing operations associated with hotel operations to secure stable revenue
Competitiveness
Comprehensive management system based on operational experience
Customers
  • Own Properties
  • Tenant Companies
  • Facility Management Companies
Products
  • Real Estate Rental Management
  • Facility Operation Agency
  • Asset Management Support

Food and Beverage Supply and Services

Overview
Leverages strengths from own hotel operations to provide ingredient and beverage procurement and services
Competitiveness
High-standard food services through consistent quality control
Customers
  • Hotel Restaurants
  • Convention Facility Operators
  • Event Catering
Products
  • Restaurant Ingredient Procurement
  • Catering Services
  • Beverage Provision

IT System Operation Support

Overview
Provides IT infrastructure supporting operational efficiency across the group
Competitiveness
Customizable systems specialized for hotel operations
Customers
  • Subsidiaries
  • Group Hotels
Products
  • Reservation Management System
  • Customer Database Management
  • System Maintenance Services

Staff Dispatch and Training Support

Overview
Industry-specialized human resources services to improve operational quality
Competitiveness
Dispatch capabilities with staff experienced in hotel operations
Customers
  • Hotel Operators
  • Restaurants
  • Cleaning and Maintenance Companies
Products
  • Hotel Staff Dispatch
  • Customer Service Training
  • Safety and Hygiene Education

Marketing and Advertising Support

Overview
Support services promoting customer acquisition and brand awareness for hotel businesses
Competitiveness
Planning and operation capabilities for regionally focused initiatives
Customers
  • Own Hotels
  • Partner Hotels
  • Tourist Facilities
Products
  • Brand Strategy Development
  • Digital Marketing
  • PR Event Planning

Competitive Advantage

Strengths

  • Stable customer base from regionally focused operations
  • Market coverage through multi-brand deployment
  • Sound financial position
  • Efficient operations via subsidiary collaboration
  • Strengthened cooperation with strategic investors
  • Facility enhancements through substantial capital investment
  • High customer satisfaction
  • Listed on Tokyo Stock Exchange Standard and Nagoya Stock Exchange Premier
  • Secured diverse sales channels
  • Long history and proven track record

Competitive Advantages

  • Multiple brands addressing diverse accommodation needs
  • Flexible service provision through regionally focused structure
  • Collaboration with subsidiary Choice Hotels Japan
  • Strong market position centered in the Tokai area
  • Reinforced revenue base following financial restructuring
  • Stability in capital and management through strategic investment
  • Broad price range from mid- to high-end
  • Differentiation through proprietary brands
  • Economies of scale from multi-location expansion
  • Service optimization based on deep regional understanding

Threats

  • Worsening labor shortages in the accommodation industry
  • Rising fuel and energy costs
  • Demand fluctuations from 2020s pandemic impact
  • Intensifying competition from major hotel chains
  • Regional economic downturn risks
  • Facility damage risks from natural disasters
  • Risks from strengthened government regulations or legal changes
  • Impact from online travel booking platforms
  • Fluctuations in inbound foreign tourists
  • Suppressed accommodation demand due to rising prices

Innovations

2022: Opening of Comfort Hotel Yokkaichi

Overview
Opened Yokkaichi's first Comfort brand hotel within the head office building, strengthening regional bases.
Impact
Improved regional market recognition and increased accommodation revenue.

2023: Advancing three-year plan for 8% increase in guest rooms

Overview
Implementing plan to expand to 18,000 rooms nationwide.
Impact
Contributes to market share expansion and revenue base strengthening.

2021: Operational efficiency through advanced IT systems

Overview
Promoted digitalization of reservation management and customer services to improve business efficiency.
Impact
Achieved operating cost reductions and enhanced customer satisfaction.

2022: Introduction of energy-efficient equipment

Overview
Advanced energy-saving measures in facilities to reduce environmental impact.
Impact
Achieved both operating cost reductions and environmental burden alleviation.

2023: Preparation for new brand hotel launch

Overview
Planning higher-priced new brand hotels for differentiation.
Impact
Aims to acquire new customer segments and achieve higher profitability.

Sustainability

  • Active introduction of energy-saving equipment
  • Promotion of local hiring to revitalize regional economy
  • Thorough waste reduction and recycling
  • Procurement policies reducing environmental burden
  • Cultural promotion through collaboration with local communities
  • Enhanced disaster preparedness for facility safety
  • Advancement of work-style reforms for employees
  • Customer-participatory environmental awareness programs