Kyoto Hotel

Basic Information

Stock Code
9723
Industry
Services
Category Detail
Travel & Hotels
Prefecture
Kyoto Prefecture
Establishment Year
June 1927
Listing Year
October 1969
Official Website
https://www.kyotohotel.co.jp/
TSE Information
TSE Information
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Overview

Kyoto Hotel is a long-established hotel operator based in Kyoto, founded in 1927, with Hotel Okura Kyoto as its core facility and strengths in regional tourism and lodging services.

Current Situation

Kyoto Hotel recorded net sales of 9.1 billion yen and net profit of 900 million yen for the fiscal year ended March 2024, maintaining a solid management foundation. Its main facility, Hotel Okura Kyoto, is an iconic hotel in regional tourism, offering highly rated lodging and banquet services. Through its business alliance with Hotel Okura, it has strengthened its brand power and secured stable customer attraction. With its long history and regionally integrated management, it has built good relationships with the local community, including landscape preservation. Having overcome past management reconstruction, it has restored financial health while focusing on facility renovations and service improvements. Looking ahead, it aims for increased customer attraction with the recovery of the tourism industry and sustainable operations, while promoting regional contributions and environmental load reduction initiatives. It continues investments for safe and secure service provision and deploys a management strategy that fuses tradition and innovation.

Trivia

Interesting Facts

  • Hotel Okura Kyoto is one of the tallest buildings in central Kyoto.
  • Historic hotel where Nicholas II stayed in 1891.
  • Long-term landscape dispute with Kyoto Buddhist Association during high-rise building plans.
  • Nippon Suisan (Nichirei) has been the top shareholder since 1977, supporting management reconstruction.
  • Maintains locally integrated management while being part of Hotel Okura group.
  • Historically owned ryotei Awata Yamaso, operated until 2021.
  • Formerly operated Shiga Kogen Hotel and Takatsuki Kyoto Hotel.
  • Originally Kyoto Tokiwa at founding, renamed Kyoto Hotel in 1895.
  • 60m high-rise building opened in 1994, comparable to Kyoto Station building.
  • Major investor during management reconstruction was food industry giant Nichirei.

Hidden Connections

  • Stable management in the industry achieved through investment ties between Hotel Okura and Nichirei.
  • Taisei Corporation handled construction in conjunction with shift from ryokan management to hotel operations.
  • Landscape preservation conflict with Kyoto Buddhist Association promoted stronger ties between regional community and company.
  • Japan Policy Investment Bank is also a shareholder, providing management support from a public perspective.
  • Operated hotels located on former Choshu Clan residence site, deep historical land connections.
  • Involved in hotel industry restructuring through sale and closure of former JAL Hotel facilities.
  • Capital ties exist with local real estate firms and Keihan Holdings.
  • Actively participates in Kyoto cuisine promotion through collaboration with local food culture businesses.

Future Outlook

Growth Drivers

  • Increased lodging demand from domestic and international tourism recovery
  • High value-added strategy leveraging history and cultural resources
  • Support from Japanese government tourism promotion policies
  • Customer service improvements through digitalization
  • Strengthened regional collaboration and new customer acquisition channels
  • Enhanced response to sustainable tourism
  • Creation of new lodging demand such as workations

Strategic Goals

  • Maintain occupancy rate above 85% at all times
  • Achieve 30% reduction in energy consumption
  • Expand tourism resource businesses through regional collaboration
  • Strengthen digital engagement across all customer segments
  • Enhance services for elderly and disabled
  • Obtain full sustainability standard certifications
  • Achieve employee satisfaction above 90%
  • 10% sales increase through new service development

Business Segments

Corporate Banquet Services

Overview
Provides diverse banquet and conference services for corporate clients.
Competitiveness
Regionally integrated customer service and historic facility operations
Customers
  • Corporate event organizers
  • Wedding planners
  • Local governments & public organizations
  • Educational corporations
  • Group travel agencies
Products
  • Corporate banquet plans
  • Indoor conference facilities
  • Wedding venue rentals
  • Seminar & lecture provision
  • Commemorative event support

Lodging Business

Overview
Provides lodging facilities to individuals and groups, including package sales.
Competitiveness
Historic location value and brand strength
Customers
  • Business professionals
  • Tourists (domestic & international)
  • Travel agencies
  • Tour operators
  • Educational & training institutions
Products
  • Individual & group lodging reservations
  • Long-stay plans
  • Lodging package tours
  • Linked travel services

Dining Services

Overview
Deploys multifaceted dining-related services inside and outside the hotel.
Competitiveness
Menu development leveraging Kyoto's food culture
Customers
  • Event users
  • In-hotel customers
  • Corporate catering
  • Tour groups
  • Local government events
Products
  • In-hotel restaurant operations
  • Catering services
  • Special event cuisine
  • Local ingredient menus

Facility Management & Operations Outsourcing

Overview
Undertakes facility management and operations, providing advanced know-how.
Competitiveness
Comprehensive management capabilities based on hotel operation experience
Customers
  • Public facility managers
  • Private facility owners
  • Hotel developers
Products
  • Facility management services
  • Operations consulting
  • Event planning & operations

Competitive Advantage

Strengths

  • Long history and brand power rooted in the Kyoto region
  • Strong alliance with Hotel Okura
  • Provision of diverse lodging, banquet, and dining services
  • Customer attraction through collaboration with regional tourism resources
  • Stable financial base and track record of management reconstruction
  • Strong relationships with local Kyoto community
  • Customer trust and hospitality unique to an established firm

Competitive Advantages

  • High-end hotel operations utilizing Hotel Okura brand
  • Region-specific strategy and customer base focused on tourist city Kyoto
  • Cross-selling through diverse service lineup
  • Possesses one of the largest banquet facilities in the prefecture
  • Cultural value provision leveraging history as an established firm
  • Stable local customer base and lodging demand
  • Local support through strict landscape preservation considerations
  • Operations know-how in various outsourced operations
  • Enhanced hospitality training for employees
  • Strong ties with local community and tourism environment

Threats

  • Intensifying competition from new hotel entrants
  • Decline in tourists due to pandemics or natural disasters
  • Impact of construction restrictions from strengthened landscape regulations
  • Fluctuations in inbound demand
  • Challenges in talent acquisition and rising labor costs
  • Reduced corporate banquet demand due to economic downturn
  • Adapting to changes in domestic and international travel trends
  • Complications in negotiations with local governments
  • Rising energy costs
  • Tourism environment fluctuations due to climate change

Innovations

2023: Rebranding of Hotel Okura Kyoto

Overview
Implemented brand name change to Hotel Okura Kyoto and facility renovations.
Impact
Improved brand recognition and enhanced customer attraction.

2022: Promotion of digitalization in lodging reservation systems

Overview
Revamped online reservation and customer management systems for efficiency.
Impact
Improved customer convenience and operational efficiency.

2021: Introduction of energy-saving equipment to reduce environmental impact

Overview
Updated to energy-saving air conditioning systems and LED lighting.
Impact
Reduced CO2 emissions and operating costs.

2024: Development of new lodging plans

Overview
Introduced plans addressing diverse needs such as workations.
Impact
开拓 of new customer segments.

Sustainability

  • Formulation and promotion of CO2 emission reduction plans
  • Strengthening procurement of local ingredients
  • Expansion of waste recycling
  • Participation in regional environmental conservation activities
  • Promotion of environmental education for employees