Key Facts
• APA Group owns Japan’s largest hotel network with 385 hotels and 86,895 rooms.
• The company is selling regional hotels and converting them into franchises (FC).
• Funds from sales are redirected to urban areas like Tokyo and Kansai.
• CEO Kazunari Motoya cited population decline and rising costs as key challenges.
• In 2024, two hotels near Obihiro and Hakodate stations were sold and franchised.
• Proceeds funded a 500-room hotel project near Sapporo Station, opening in 2027.
• In March 2025, a hotel in Kishiwada, Osaka, was sold to fund urban projects.
• APA’s 2024 revenue reached ¥225.9 billion, with a record ¥56.2 billion in net profit.
• Revenue and profit grew 1.6x and 2.7x compared to pre-COVID levels in 2019.
• APA leverages its subsidiary, “the b hotels,” to address urban market saturation.
• The company plans further sales to optimize resource allocation.
Summary
APA Group, Japan’s largest hotel network operator, is restructuring its business by selling regional hotels and converting them into franchises. This strategy aims to redirect resources to major urban areas like Tokyo and Kansai, where profitability is higher. CEO Kazunari Motoya highlighted challenges such as population decline and rising costs. Recent sales include two hotels in Hokkaido in 2024 and one in Osaka in 2025, with proceeds funding urban projects like a 500-room hotel near Sapporo Station, set to open in 2027. APA’s 2024 financial performance hit record highs, with revenue of ¥225.9 billion and net profit of ¥56.2 billion, driven by a post-COVID tourism boom. To address market saturation in urban areas, APA is utilizing its subsidiary, “the b hotels,” and plans further sales to enhance operational efficiency.
