Royal Hotel Swings to Profit on 40% Sales Surge in Stellar First Quarter.
The hotel operator reverses prior-year losses, driven by a dramatic increase in revenue, and issues a confident forecast for the full fiscal year.
Royal Hotel Ltd. (9713.T) has announced a remarkable financial turnaround for the first quarter ending June 30, 2025, reporting a significant swing to profitability fueled by a massive surge in sales. The impressive results signal a robust recovery in the hospitality sector and a strong start to the company’s fiscal year.
According to its latest consolidated financial highlights, Royal Hotel posted sales of 7.26 billion yen, a substantial 39.7% increase from the 5.20 billion yen recorded in the same period last year. This surge in top-line revenue was the primary driver behind the company’s return to profitability across all key metrics.
The most notable shift was seen in its operating income. The company reported an operating profit of 675 million yen, a dramatic reversal from the 52 million yen operating loss it suffered in the first quarter of the previous year. This indicates a significant improvement in the hotel’s core business efficiency and pricing power.
This positive trend continued down the income statement. Recurring profit stood at 692 million yen, compared to a loss of 27 million yen a year ago. Ultimately, Royal Hotel achieved a net profit of 469 million yen. This is a stark contrast to the net loss of 165 million yen in the prior-year quarter, underscoring the strength of the recovery.
For shareholders, the results translated into a significant boost in earnings per share (EPS), which came in at 30.73 yen. This is a welcome development compared to the loss per share of 10.83 yen from the same quarter in 2024. The company maintained its annual dividend forecast at 5.00 yen per share, signaling stability and a commitment to shareholder returns.
Looking ahead, Royal Hotel’s management has expressed confidence in sustaining this momentum. The company issued a strong forecast for the full fiscal year ending March 31, 2026. It projects total sales to reach 29.20 billion yen, with an operating profit of 900 million yen and a net profit of 600 million yen. If realized, this would result in a full-year EPS of 39.28 yen, cementing the company’s successful turnaround.
The strong performance is likely attributable to a rebound in both domestic and international travel, leading to higher occupancy rates and increased average daily room rates across its properties. Royal Hotel’s first-quarter results position it firmly on a path of sustained growth and profitability for the fiscal year ahead.
