Resorttrust Q1 FY2027: Revenue climbs 16%, operating profit jumps 78% to record

Resorttrust’s consolidated revenue for the first quarter climbed 16.0% year on year to ¥61,261 million, operating profit soared 78.4% to ¥8,116 million, and net income attributable to owners of the parent surged 79.1% to ¥5,467 million. The operating margin improved to 13.2%. On an underlying basis, adjusted operating profit rose 34.5% to ¥10,583 million.

The strong results were driven by record contract value in the membership business. While the previous year focused on pre-opening membership sales for unopened hotels, this quarter saw a concentration of sales at existing hotels, boosting profitability. The launch of Sanctuary Court Sotobo Sujima in June 2026 provided an additional tailwind. In the medical segment, an increase in Grand High Medic Club members lifted annual fee income. The full-year operation of Sanctuary Court Nikko, which opened earlier, and price revisions that raised average spending per guest further bolstered earnings. The company absorbed higher labor and utility costs through improved productivity, fueling significant profit growth.

Membership Business
Revenue surged 46.8% to ¥18,892 million, with segment profit up 72.7% to ¥6,920 million. Strong membership sales and the June 2026 launch of Sanctuary Court Sotobo Sujima membership recruitment drove the expansion. The higher proportion of existing hotel membership sales lifted profitability, and contract value hit a record high.

Hotel & Restaurant Business
Revenue rose 5.0% to ¥27,476 million, while segment profit grew 20.6% to ¥1,093 million. The full-period contribution of Sanctuary Court Nikko (opened February 2026), room rate revisions at some facilities, and a virtuous cycle of wage increases and productivity improvement supported the gains. Both occupancy and average spending per guest improved.

Medical Business
Revenue climbed 8.3% to ¥14,701 million, and segment profit expanded 21.8% to ¥2,218 million. Steady recruitment for the Grand High Medic Club lifted annual membership fee income. The general health checkup business, wellbeing product operations, and senior life services also grew, reinforcing the segment’s role as a second pillar.

Other
Revenue increased 11.1% to ¥191 million, with segment profit up 24.9% to ¥138 million, driven by steady real estate leasing.

Total assets at quarter-end rose 2.4% from the prior fiscal year-end to ¥538,178 million, mainly due to a ¥8,787 million increase in real estate for sale under development and a ¥5,905 million increase in construction in progress. Total liabilities grew 2.9% to ¥368,907 million, reflecting a ¥7,852 million rise in short-term borrowings to fund new developments and a ¥5,540 million increase in advances received from membership sales of unopened properties. Net assets increased 1.6% to ¥169,271 million, maintaining an equity ratio of 30.3%.

Although no quarterly cash flow statement was prepared, the company funds development through membership advance receipts and bank borrowings, and its financial base remains stable.

For shareholder returns, Resorttrust raised its full-year dividend forecast for FY2027 by ¥2 to ¥36 per share, a record high. This marks a consecutive annual increase from the prior year’s ¥34 and underscores its commitment to shareholder returns.

Resorttrust maintains its full-year FY2027 forecast: revenue ¥255,000 million (down 3.0% year on year), operating profit ¥31,000 million (up 6.3%), and net income ¥21,000 million (up 0.4%), reflecting lower revenue but higher profit. The revenue decline is due to accounting factors related to the size of properties opened; on an underlying basis, the company plans for both revenue and profit growth. In particular, the scheduled opening of Sanctuary Court Hachigatake in March 2027 is expected to bring a lump-sum recognition of deferred real estate revenue, boosting profit.

Key forecast figures (unchanged from the May 15, 2026 announcement): revenue ¥255,000 million, operating profit ¥31,000 million, ordinary profit ¥30,500 million, net income ¥21,000 million, and adjusted operating profit ¥36,500 million. Q1 progress rates stand at 24.0% for revenue and 26.2% for operating profit, signaling a solid start.

Resorttrust identifies the following principal risks:

• Cost inflation: Persistently high building material and energy prices could push up new hotel development and operating costs.
• Labor shortages: A chronic worker deficit pressures service quality and cost management in the hotel and restaurant business. The company is pursuing productivity gains and wage hikes through digital transformation, but the structural challenge warrants close monitoring.
• Economic uncertainty: Although domestic demand is firm, an economic slowdown or volatile inbound tourism could reduce hotel occupancy.
• Membership sales sustainability: The high-ticket membership business is sensitive to economic cycles; whether future recruitment proceeds as planned is key to hitting targets.

The company aims to counter these risks through price revisions to strengthen profitability, digital-led operational efficiency, and expanding its membership base to build stable income, but external changes require ongoing vigilance.

A key strategic focus is the progress of new hotel developments. Sanctuary Court Sotobo Sujima, which began membership recruitment in June 2026, has seen strong initial contract values, boding well for post-opening earnings. Sanctuary Court Hachigatake is set to open in March 2027, triggering a lump-sum recognition of deferred real estate revenue that is expected to significantly contribute to full-year profit.

These developments and robust membership sales demonstrate that Resorttrust’s business model, the virtuous cycle of membership sales and operational earnings, remains highly effective. The mid-term plan’s emphasis on a “virtuous cycle of productivity improvement and wage increases” is also translating into better profitability, drawing attention to the balance between future growth investments and shareholder returns.