Fujita Kanko Inc.
INTEGRATED REPORT
Integrated Report
2024
Company Policies
Our goal is to contribute to the well-being of society by providing hospitable services and places where people can relax, refresh and revitalize.
Long-Term Vision
Continue to grow through a unique development of business that closely matches lifestyles, in order to create smiles.
Forward-Looking Statements
The content of this report is based on information that is currently available to the Company, and on forecasts made at the time of production and publication. There are certain risks and uncertainties involved with these statements, and they do not guarantee the Company's future performance. Please note that actual business results may differ significantly from the forecasts and outlooks presented in this report.
Contents
In November 2025, Fujita Kanko will celebrate its 70th anniversary.Please visit our special 70th anniversary website.
https://www.fujita-kanko.co.jp/70th/ (Japanese only)
Value Creation Story
The History of Fujita Kanko 3
Message from the President 7
Management Capital and Strengths 11
Our Value Creation Process 13
Strategies
Medium-Term Management Plan and
Strengthening of Management Capital 15
Sustainability Strategy 17
Special Feature: Director and Employees' Roundtable Discussion 19 Business Strategy 23
Sustainability and Corporate Governance
Sustainability 26
Company Leadership 29
Messages from Outside Directors 31
Corporate Governance 33
Data
Financial and Non-Financial Summary 35
Company Information 37
1 Fujita Kanko Inc. Integrated Report 2024 FUJITA KANKO INC. 2
The History of Fujita Kanko
Building Management Capital in Step with Social ChangesFujita Kanko has sensitively responded to changes in society and achieved grown through innovative business models and the adoption of new technologies.
1948 -1960s
1970 - 1980s
From Fujita zaibatsu (business conglomerate) to Fujita Kanko Pioneering the "business hotels" that the times demandedSocial needs and historical background
As people tried to recover from the devastation of the post-war period, they sought peace of mind and longed for a place where could find new hope and joy in life.
Social needs and historical background
As economic activity intensified during the period of high economic growth, the number of Japanese businessmen staying at hotels alone when traveling for business increased significantly.
Our History
Fujita Kanko's roots are in trading company Fujita Denzaburo Shosha, which was founded in 1877. Fujita Kanko became an independent company in 1955 when Fujita Kogyo spun off its tourism business. In the aftermath of World War II, Eiichi Ogawa, the first president of Fujita Kanko, sought to open some of the estates, villas and gardens formerly owned by Japan's privileged class to the public, seeing this as a way to contribute to society by providing weary citizens-now faced with the monumental task of rebuilding the
First President
Eiichi Ogawa
country-with peaceful and comfortable public gathering places. It was this idea that led to the transforma-
tion of the estate and gardens of the Fujita family into a hotel and restaurant and the launch of the tourism and hospitality business that would eventually become Fujita Kanko Inc.
Opening of Hakone Kowakien and Chinzanso
In 1948, Eiichi Ogawa opened Hakone Kowakien, a Japanese-style inn converted from the Fujita family villa. He drilled hot springs and expanded the facilities to create a relaxing space that became much loved by the general public. In 1952, Ogawa opened Chinzanso. By restoring gardens devastated in the war and open-
The birth of Washington Hotel, the foundation of business hotels
At the time, the only accommodation available for businessmen traveling for business were inns with shared rooms, such as those used by traveling merchants. This gave rise to the birth of the Washington Hotel with the concept, "we want to provide a place where business travelers can have a beer with dinner and buy a small souvenir for their children, all within the range of their travel expenses." The Company opened the Sapporo Dai-ichi Washington Hotel in 1973 and the Sendai Dai-ichi Washington Hotel in 1974, after which it introduced a franchise system to achieve rapid expansion nationwide. The hotel name was apparently chosen by Ogawa, who admired America's founding father, George Washington. To keep room rates in line with business travel expense accounts, we reduced the floor area of each room and introduced the now-common modular bathrooms. We were also the first in the hotel industry to adopt an automated front desk system.
* The first Washington Hotel was the Nagoya Dai-ichi Washington Hotel, which opened in 1969. Operated by Nagoya International Hotel Inc. (currently Washington Hotel Corporation)
Sapporo Dai-ichi Washington Hotel at the time of its opening
(Millions of yen)
13,000
12,000
11,000
10,000
9,000
8,000
7,000
6,000
5,000
ing restaurants, he provided a lush oasis in Tokyo. Ogawa's hospitality mindset of "wanting to provide people with places to relax" that is embodied in both these facilities was passed on to Fujita Kanko, which was founded in 1955, and has remained the basis for the operation of facilities that are loved by many people to this day.
Hakone Kowakien at the time of its opening
(Currently Hakone Kowakien Soba Kihinkan)
Chinzanso at the time of its opening (Currently Hotel Chinzanso Tokyo)
Accumulated management capital
Market analysis capabilities to capture customer needs
Operational expertise that enabled nationwide expansion
Innovation reflecting social changes and building a foundation for growth
Creating business hotels to meet the demands of business travel and providing efficient and practical accommodation.
Achieved multi-facility expansion by operating efficiently and keeping costs down.
4,000
3,000
2,000
Ordinary Profit
1,000
History
1955
1959
1961
1965 1968 1973 1983 1992
Establishment of trading company Fujita Denzaburo Shosha
Full-scale entrance into the mining industry, following the sale of Kosaka Mine
Reorganized into Fujita Gumi
Establishment of Fujita Mining Co., Ltd.
Takeover of all but
four principal mines and the Kojima Bay Land Reclamation Project
Opening of Hakone Kowakien
Fujita Mining Co., Ltd. renamed Fujita Kogyo Co., Ltd.
Shifted business focus to the real estate, railway and tourism industries
Opening of Chinzanso
Tourism business of Fujita Kogyo spun off as Fujita Kanko Inc.
Opening of Taikoen (closed in 2021) Opening of
Hakone Kowakien Hotel
Opening of Kyoto International Hotel (closed in 2014)
Opening of the Sapporo Dai-ichi Opening of Shinjuku Washington Hotel (currently Hotel Washington Hotel Gracery Sapporo), the first
Washington Hotel location
Opening of Fujita Guam Tumon Beach Hotel (closed in 2003)
Denzaburo Fujita (1841-1912)
Announced Fujita Green Members (FGM), Japan's first members-only hotel
1983
1973
1968
1965
1961
1959
1955
1952
1948
1945
1881 1884
1877
(1,000)
3 Fujita Kanko Inc. Integrated Report 2024 FUJITA KANKO INC. 4
The History of Fujita Kanko
1990 - 2000s
2010 - present day
The wave of internationalization and new challenges Taking on the challenge of paving the way for the future of tourismSocial needs and historical background
After the bubble period, when travel demand was booming, consumers became more experienced, which led to an increase in individual travel needs. At the same time, online travel websites grew rapidly with the spread of the Internet. In addition, many overseas-based hotel chains entered the Japanese market, further internationalizing the tourism industry and intensifying competition.
Social needs and historical background
Inbound tourism has increased rapidly due to the Japanese government's tourism-oriented policies. The emergence of low-cost carriers (LCC) has made domestic and international travel more accessible. The global spread of COVID-19 accelerated the diversification of tourism needs, including growing demand for con-tactless services, travel styles that prioritize privacy, and the expansion of "experience-based consumption."
TM & © TOHO CO., LTD.
Record profit of
¥12.62 billion for FY2024
(Millions of yen) 13,000
12,000
11,000
10,000
International-standard services developed through partnerships with foreign companies
In 1992, we opened Four Seasons Hotel Tokyo at Chinzanso in partnership with Four Seasons Hotels and Resorts. By overcoming the differences in Japanese and American hotel culture, and combining the strengths of each, a uniquely beautiful hotel, unlike any other in the world, was born. Through this partnership, we incorporated luxury hotel management expertise and international sales strategies. Customer service skills refined to international standards have become the foundation for today's high-quality service, and remain one of Fujita Kanko's enduring strengths.
Unique business development utilizing our assets
Four Seasons Hotel Tokyo at Chinzanso
Capturing inbound demand
Hotel Gracery Shinjuku, which opened in 2015, is located on the 8th to 30th floors of the Shinjuku Toho Building and has become a hub that actively attracts overseas visitors to Japan as well as tourists and leisure travelers. The installation of the "Godzilla Room" in particular has attracted overseas tourists with a strong interest in Japanese culture, adding a special touch to their accommodation experience. The Group is effectively capturing inbound demand and enhancing its competitiveness in the inbound tourism market.
Unique business development to meet diversifying needs
The Godzilla Room at Hotel Gracery Shinjuku
(Millions of yen)
13,000
12,000
11,000
10,000
9,000
8,000
7,000
6,000
5,000
The Four Seasons Hotel Tokyo at Chinzanso makes the most of one of the finest gardens in Tokyo, its rare asset, while offering fitness facilities, spa treatments, and a variety of dining options to meet our guests' expectations. In addition, Hakone Kowakien opened Hakone Kowakien Yunessun, a hot springs amusement park, in 2001, taking advantage of the hot springs that are characteristic of the area. We have created new value through unique business development that leverages the Company's strengths.
Green tea bath Wine bath
The Group responds to diverse needs by developing facilities that combine tradition and innovation. Hakone Kowakien
Mikawaya Ryokan offers a space where guests can experience the beauty and history of Japanese architecture, conveying the charm of tradition. At the same time, we are also taking on the challenge of creating facilities that propose new travel styles. Glamping Fuji no Kirameki offers a glamping experience in harmony with nature through independent cabins, while HOTEL TAVINOS pursues convenience as an accommodation-focused hotel targeting the Millennial generation. Furthermore, Eiheiji Hakujukan, offers a stay enabling guests to experience Zen culture.
We are also working to improve our services by promoting the use of automated check-in kiosks and self-service lockers, and are reallocating staff to improve customer-focused services.
9,000
8,000
7,000
6,000
5,000
4,000
Accumulated management capital Innovating and establishing competitive strengths in hotel management
by blending tradition with internationalism
Accumulated management capital Innovation and sustainable growth of the tourism industry to meet diverse needs
4,000
3,000
2,000
1,000
Creating value by leveraging our uniqueness
International brand management expertise
By utilizing assets such as gardens and hot springs, we are promoting business development that leverages our unique strengths.
Through partnerships with international brands, we have acquired high-quality hotel services and sales techniques.
Ability to respond to diversifying needs
Ability to develop both domestic and overseas markets
The ability to grasp customers' diverse needs and develop flexible services and facility operations.
Capture inbound demand and communicate with customers through the membership program.
3,000
2,000
1,000
1992 2001
2006
2013 2015
2017 2018 2019
2021
2023
2024
(1,000)
1992
2001
2013
2015
2017
2018
2019
2021
2023
Opening of Four Seasons Hotel Tokyo at Chinzanso
Opening of Hakone Kowakien Yunessun
Opening of Hotel Chinzanso Tokyo (merger and rebrand of Chinzanso with Four Seasons Hotel Tokyo at Chinzanso)
Opening of
Hotel Gracery Shinjuku
Opening of
Opening of
Hotel Gracery Taipei
Opening of HOTEL TAVINOS Hamamatsucho
Closure of Hakone Kowakien Hotel for reconstruction
Opening of
Hotel Gracery Seoul
Opening of
Hakone Kowakien Hotel
(2,000)
(3,000)
(4,000)
(5,000)
(6,000)
TM & © TOHO CO., LTD.
Hakone Kowakien Ten-yu
(7,000)
5 Fujita Kanko Inc. Integrated Report 2024 FUJITA KANKO INC.
6 (8,000)
Realizing Added Value and Increased Productivity The Challenge of Establishing a Foundation for Sustainable GrowthA history of continually taking on challenges in response to changing times since our founding
In November 2025, Fujita Kanko will celebrate its 70th anniversary. This is entirely a result of the support of our customers and many other stakeholders. For this, I would like to express my sincere gratitude.
Since our founding, the Company has boldly taken on the challenges of the times, including changes in social conditions and the way people spend their leisure time. Shortly after World War II, the Company's first president laid the foundations for the tourism industry with his belief that "I want to open up the estates and gardens that have been monopolized by a small group of aristocrats and industrialists, and provide weary citizens - now faced with the monumental task of rebuilding the country - with peaceful and pleasura-blecomfortable public gathering places." Since that time, the Company has continued to grow while pioneering new markets.
This founding spirit, embodied in our Company Policies of "con-tributing to the well-being of society," is the origin of Fujita Kanko and the fundamental principle of our business management that remains unwavering even in changing times. Our desire to be
close to our customers and deliver unexpected joy is an important value shared by all our employees, and has been passed down to this day as our shared vision and part of our commitment to hospitality to "Always be the first to provide services that people appre-ciate."
In today's world, where values and preferences are changing rapidly, it is essential that we respect tradition while remaining unafraid of innovation. We believe that our mission is to always provide value that surpasses our customers' expectations, while remaining flexible in our approach to utilizing new technologies and responding to an increasingly diverse society.
What is important to me is striking the balance between "the determination to continue" and "the courage to change." We will continue to seek out the best answers for the times through customer feedback and dialogue with on-site employees. We aim to remain a company that is loved for years to come, treating our customers like family and valuing our closeness to them.
Closely match our customers' lifestyles, in order to create smiles.
The Group operates three businesses: the WHG Business, the Luxury & Banquet Business, and the Resort Business. The WHG Business shares the common value of convenience and its strength is the ability to meet a wide range of customers needs, which it does through operations of the Washington Hotel to meet business needs, Hotel Gracery, which caters to tourists, and HOTEL TAVINOS, which is aimed at the Millennial generation. The Luxury & Banquet Business manages properties including the luxury hotel Hotel Chinzanso Tokyo, as well as wedding and banquet facilities and golf courses, and is known for one of the highest numbers of wedding ceremonies performed in Japan. In addition, the Resort Business manages a variety of facilities, including an aquarium and glamping facilities, centered on Hakone Kowakien Ten-yu and Hakone Kowakien Hotel in Hakone, the birthplace of Fujita Kanko.
These businesses each possess distinct characteristics, and by sharing their experience and expertise within the Group, they generate further synergy. For example, by bringing the refined
service and culinary skills developed in luxury hotels to a resort setting, we can create a special experience. In addition, we apply the highly efficient service operation expertise established in our business hotels to other business segments. It is precisely because of our diversified business operations that we are able to leverage the strengths of each business in this way.
Each of our facilities offers experiences that closely matchcater to various aspects of lifestyles. Whether you want to celebrate a special occasion with a loved one, create fond memories with your family, or prioritize convenience for work, having a wide range of business areas that can accommodate a variety of occasions is the foundation for building relationships with business partners who continue to choose the Group's facilities for the long term, beyond a single use. The Group's strength is that providing a wonderful experience at one facility creates anticipation for the next facility, which leads to continued patronage.
FUJITA KANKO INC. 8
Message from the President
Representative Director and President, Executive Officer
Shinsuke Yamashita
7 Fujita Kanko Inc. Integrated Report 2024