2010 - Japan Leisure Hotel Operator Announces sales and EBITDA growth

Alchemy Japan KK Announces its Japanese Leisure Hotels’ 2010 Earnings Results: EBITDA 10% Growth on Previous Year

Tokyo, Japan January  24, 2011  – Alchemy Japan’s  Japanese Leisure  Hotels reported: an EBITDA of ¥564 million, a 10% improvement on the previous year, and a Net income of ¥909 million being a 9% growth on net income for 2009. Sales grew to ¥2.036 billion, a 4.3% increase on 2009. Revenue growth was led by an 18% increase in customer numbers as 2010 average Occupancy Rate (OCR) reached 257%.

Our positive results can be attributed to a combination of factors said Mr. Mijatovic:

 the success of our operating partner, Urban Resorts Japan’s “Guaranteed Value”™  customer retention and acquisition strategy evidenced by OCR increasing by 18% and the 8% increase in Food & Beverage revenues,

 the systemization of our yield maximization processes  enabled specific analysis, precise examination and quicker reaction  times to changes in the competitive market environment at each hotel and customer preferences,

 industry leading levels of operational efficiency, in particular labour productivity.

“Despite the  weakening economic conditions in Japan we have achieved our greatest revenues and net income growth in the second half of 2010, with the end of year holiday period in particular achieving record revenues.” noted Mr. Mijatovic

“Our hotels  and operating procedures  have been updated to comply with the new regulatory changes  governing Leisure Hotel operations and we  are well placed to continue both revenue and bottom line growth in 2011."

Alchemy Japan’s management anticipates that  their 2011 leisure hotels’ earnings will maintain or exceed the growth levels achieved in 2010.

“We expect to see significant opportunities for acquiring new hotels as a large number of hotel owners  seek to exit their investments due to  liquidity constraints, distress in their financing arrangements and the impact of  the new regulations” stated Mr. Mijatovic.

About Alchemy Japan:
Headquartered in Tokyo, Alchemy Japan is an asset management, investment and advisory company that creates value by transforming and managing real estate, investments, and financial assets.

Alchemy Japan commenced management of Leisure Hotel assets in Japan in 2004 with an asset
management mandate for one of the first foreign institutional investors into the sector.  Its Leisure
Hotel division now owns and manages a nationwide portfolio of 15 hotels.

Urban Resorts Japan is one of Japan’s leading and most dynamic leisure hotel operators and is
ranked 10th nationally in terms of room inventory.

http://www.japantoday.com/category/business/view/alchemy-japan-kk-announces-strong-results-in-love-hotel-sector
http://alchemyjapan.jp/en/whoweare/Alchemy%20Japan-MediaRelease-January2011.pdf