Royal Hotel's first-half profit falls 50% as a wave of new openings outpaces room-revenue growth
Royal Hotel opened three hotels in the first half and announced two more, but the costs of that expansion halved profit even as room revenue grew 22% -- a Japan hotel group betting on new floors while nationwide foreign guest-nights have been falling.
Royal Hotel, Inc. (株式会社ロイヤルホテル), which operates the RIHGA Royal Hotel (リーガロイヤルホテル) brand -- including its Osaka flagship -- and Tokyo's Shiba Park Hotel (芝パークホテル), said first-half net profit fell 50.3% to ¥197 million and operating profit fell 55.7% to ¥221 million, even as revenue rose 8.0% to ¥14.82 billion, in results covering April to September 2026 published November 13. The company attributed the fall to the costs of opening a wave of new hotels, despite higher sales.