Imperial Hotel: 27/3 Q1 results: Better-than-expected performance

研报英文原文证据摘录

Imperial Hotel: 27/3 Q1 results: Better-than-expected performance

Global Markets Research

30 July 2026Imperial Hotel

9708.T 9708 JP / EQUITY: JAPAN SERVICES

Rating27/3 Q1 results: Better-than-expected

Remains Neutralperformance

Target price

Reduced from 1,290 JPY 1,140We revise target price to reflect delays to start of redevelopment project

Closing price JPY 1,000We raise our operating profit forecasts and retain our Neutral rating 30 July 2026

We raise our operating profit forecasts for Imperial Hotel in light of 27/3 Q1 results. We

Implied upside +14.0%retain our target price calculation methodology, but increase the discount we apply to the

company's land holdings to 60% as we expect the redevelopment timetable for Imperial

Hotel Tokyo as a whole to be pushed back by around seven years. We lower our target

price to ¥1,140 and retain our Neutral rating.

Relative performance chart

Steady progress with finding tenants for Tower Building

Imperial Hotel generated 27/3 Q1 operating profits of ¥0.7bn (down 6% y-y), beating our

forecast by ¥0.4bn. Operating profits at the hotels segment beat our forecast by ¥0.7bn

thanks to lower-than-expected material costs as well as sales upside of ¥0.2bn versus our

forecast, mainly in Kamikochi and Kyoto. However, the real estate segment incurred

losses of ¥0.2bn, undershooting our forecast by ¥0.3bn, on the booking of additional

maintenance costs related to the reopening of the Tower Building. We raise our 27/3

operating profit forecast from ¥2.4bn to ¥2.8bn to reflect outperformance in Q1, but retain

our operating profit forecasts for Q2 onwards, having revised our material cost

assumptions in light of Q1 results and also revised our assumptions for personnel costs

following the opening of Imperial Hotel Kyoto.