[First in 364 Years] Two Foreign Managers Appointed at Historic Ryokan - Evolution of 'Omotenashi' in an Era of 60% Foreign Guests

Kinnotake Co., Ltd. (Headquarters: Hakone, Kanagawa; President & CEO: Masaaki Yahata; hereinafter 'Kinnotake'), which operates 5 ryokans (traditional Japanese inns) and 3 restaurants in Hakone, Kanagawa Prefecture, has announced the appointment of two foreign nationals as managers at the 364-year-old hot spring ryokan 'Matsuzakaya Honten'. This is the first time in the ryokan's history to have foreign managers.

This initiative is a first not only in the history of Matsuzakaya Honten, which dates back to the Edo period, but also the first attempt for the Kinnotake Group (founded in 1947).

Currently, it is projected that approximately 60% of guests in 2025 will be foreign tourists visiting Japan, and the ratio of foreign staff across the entire group has reached approximately 39%. This appointment symbolizes the fusion of diversity and tradition.

| The Changing Ryokan Industry and the Need for "Diversity"

In recent years, due to the increase in foreign tourists visiting Japan, the services expected of ryokans have changed significantly. At our flagship facility, 'Matsuzakaya Honten', approximately 67% (4,571 foreign nationals / 2,224 Japanese nationals) of the guests from September 2025 to February 2026 (our company's first half) are expected to be foreign tourists. There is a growing demand for more essential and flexible hospitality for guests with different cultures and values.

Against this backdrop, our company has been promoting a system that evaluates the essential value of human resources regardless of nationality.

The two individuals who have been appointed as managers both started their careers as customer service staff after coming to Japan. Overcoming language and cultural barriers, they have accumulated experience on the front lines and earned high trust from both guests and staff.

| What Was Evaluated Was Not "Nationality" but "Trust"

In the ryokan industry, management structures centered on Japanese nationals have traditionally been the mainstream. However, our company emphasizes on-site achievements. Through years of on-site experience, both individuals have received high praise from both customers and staff.

What was evaluated in this promotion to manager was not language skills or country of origin, but "contribution to customer satisfaction," "trust from on-site staff," and "reproducible operational capability."

In addition to high ratings from customers, these two, who also command deep trust from the Japanese staff they work with, will pass on traditions to the next generation.

| On-site Initiatives and Achievements

Matsuzakaya Honten, founded 364 years ago

At the sites where both individuals are involved, they maintain high ratings on major domestic and international review sites, such as Google Reviews ★4.6, Booking.com 9.3, and Expedia 9.8 (all as of April 2026). They contribute to stabilizing satisfaction levels, especially as the inbound ratio increases. Furthermore, with deep trust from the staff, they are contributing to creating a system that can provide stable services across the entire team.

| Practicing "Omotenashi" that Bridges Cultures

Handling all floral arrangements within the facility

Manager Linh utilizes kimono dressing skills inherited from the previous Okami (proprietress) to offer kimono dressing experiences for inbound guests, and has also mastered Ikebana (Japanese flower arrangement). Currently, she solely manages the floral arrangements in the ryokan, actively embodying and broadcasting the charm of Japanese culture.

During the kimono experience, she doesn't just dress guests in kimonos, but carefully explains the movements and meanings. After the experience, guests have provided feedback such as, "It wasn't just an experience; I was able to understand Japanese culture," leading to an improvement in the value of the stay accompanied by cultural understanding.

| Diversity Evolves "Omotenashi"

Image of Kimono dressing experience

This initiative goes beyond mere diversity promotion; it is an attempt to evolve traditional Japanese hospitality into a form that can accommodate a wider variety of values.

By having personnel with different cultural backgrounds on the front lines, perspectives that are difficult for Japanese staff alone to notice are added, leading to the provision of services that convey beyond language and cultural differences.

While preserving the value of a ryokan that has lasted for over 360 years, it evolves to match the changing times. This initiative aims to become a model case for such evolution.

| Manager Profiles

NGUYEN THI THUY LINH | From Vietnam (Born in 1990, 34 years old)

- Joined the company in June 2017
- Promoted after serving as Deputy Chief and Deputy Manager
- Appointed as Manager in April 2026
- Accumulated on-site experience in customer service and operations
- Embodies Japanese culture such as Ikebana and Kimono dressing
- Hobbies: Watching travel-related YouTube videos

"Omotenashi means imagining the other person's feelings and acting before words are spoken."

She came to Japan out of interest in Japanese culture and hospitality. She felt attracted to the ryokan's stance of continuing new challenges while preserving long history and tradition, and joined the company. Although she initially struggled with "unspoken consideration," she mastered the essence through on-site experience.
Currently, she also practices kimono dressing and ikebana inherited from the previous Okami, embodying the charm of Japanese culture. She receives comments for her customer service and kimono dressing such as, "She is so polite, you wouldn't think she is a foreigner."

KHADKA SANJEEV | From Nepal (Born in 1994, 31 years old)

- Joined the company in February 2017