[First Ryokan in Fukui Prefecture] Grandia Hosen Announces '10 Billion Yen Company Declaration' by SME Support, Japan

Grandia Hosen Co., Ltd. (Head office: Awara City, Fukui Prefecture; Representative Director and President: Toru Yamaguchi; hereinafter 'the Company'), which operates ryokan businesses based in Hokuriku's Awara Onsen, is pleased to announce that it has been approved for and publicly declared the '10 Billion Yen Company Declaration' promoted by the Organization for Small & Medium Enterprises and Regional Innovation (SME Support, Japan), making it the first ryokan in Fukui Prefecture to do so.

With 'Trust and Figures' as its management philosophy and 'Empathy and Challenge' as its mission, the Company aims to achieve consolidated sales of 10 billion yen by 2032. We will accelerate diversified growth strategies that go beyond the framework of existing single ryokan management, including multi-facility expansion, operational consignment, and global expansion.

## Background of the '10 Billion Yen Company Declaration': Making Tourism an 'Aspirational Industry'

Currently, while Japan's tourism industry is experiencing a recovery in inbound demand, it faces structural challenges such as low productivity and labor shortages. The Company regards these challenges as 'opportunities for growth' and has made this declaration to establish an 'Onsen Ryokan' business model that is applicable nationwide in Japan and globally, starting from Awara Onsen.

## Four Key Strategies for Achieving 10 Billion Yen (Strategic Pillars)

- Expansion of Business Portfolio: In addition to existing large-scale ryokan management, we will promote multi-facility expansion, new business formats (private lodging, whole-house rentals), and operational consignment of other facilities to diversify our revenue base.
- Maximization of Human Capital through 'Onsen Ryokan School': We will establish a reproducible educational curriculum, 'Textbook for Ryokan Building'. We aim to nurture the next generation of tourism leaders and create a 'work environment where young people stay', balancing high remuneration with job satisfaction.
- Thorough Digital Transformation (DX): By combining real-time analysis of management data with the digitalization of operations, we will integrate traditional hospitality with the highest level of productivity.
- Global Expansion and Brand Establishment: With an eye on operational consignment overseas, we will establish the 'Hosen Brand' as a global standard. We aim to elevate 'Onsen Ryokan', a cultural asset that Japan is proud of, into an export industry that attracts the world.

## Comment from Representative Director and President Toru Yamaguchi

'Precisely because we are in an era where AI is evolving and efficiency is progressing, the value of 'heart-moving experiences' that only humans can provide is increasing. The figure of 10 billion yen is merely proof that the value we provide is widely recognized by society and contributes significantly to the regional economy. As the first declared company in Fukui Prefecture, we are determined to take the lead in pioneering the future of the tourism industry.'

## Grandia Hosen Co., Ltd. Overview

Location: 43-26 Funatsu, Awara City, Fukui Prefecture
Representative: Toru Yamaguchi, Representative Director and President
Business Activities: Ryokan business (operation of 'Grandia Hosen' in Awara Onsen, etc.)
URL: https://www.g-housen.co.jp/

Details of the 10 Billion Yen Company Declaration: Page on SME Support, Japan portal site