Hanatour Japan to demolish Tmark City Hotel Sapporo due to aging infrastructure

Hanatour Japan, through its subsidiary ALLEGROX TM Hotel Management, has decided to close the Tmark City Hotel Sapporo by March 15, 2026, and demolish its building. The decision, made at a recent board of directors meeting, is attributed to the hotel's aging structure and equipment, which has led to increased maintenance costs and a need for significant repair investments. The company noted that the current structure and specifications limit potential improvements in profitability, necessitating a reallocation of management resources.

The Tmark City Hotel Sapporo, located in Sapporo, Hokkaido, features 246 guest rooms and commenced operations on April 1, 2015. For the fiscal year ending December 2024, the hotel reported sales of 615 million yen and an operating profit of 101 million yen (before consolidation adjustments). While the impact on consolidated earnings for the current fiscal year (ending December 2025) is expected to be minor, the company is still assessing demolition costs and the effect on consolidated earnings for fiscal year 2026 and beyond.

Hanatour Japan plans to explore effective utilization of the site after demolition, including redevelopment, considering regional characteristics and market trends. Specific plans are not yet finalized but will be disclosed upon determination. The company also confirmed its commitment to continuous employment for the hotel's staff, offering options such as transfers to other hotels managed by ALLEGROX TM Hotel Management or other group companies, based on employee preferences.