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Royal Holdings to Open 122 New Restaurants in Global Expansion Push

Japanese hospitality firm plans to invest heavily in hotels as tourism booms
Japan
r 8179.TSE Mid and Small Cap 2000
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Royal Holdings Co. plans to open 122 new restaurants across Asia and North America as part of an ambitious expansion strategy outlined in its medium-term business plan through 2027.

The Japanese food and hospitality group will invest ¥46.5 billion ($310 million) in capital expenditures over the next three years, more than doubling its spending from the previous three-year period. Approximately ¥17 billion will be directed toward its restaurant business, with a strong focus on international growth.

Of the 122 planned restaurant openings, 50 will be directly managed locations requiring about ¥2.5 billion in investment, while 72 will operate under franchise agreements. The company intends to expand its Tenya tempura bowl chain and Sizzler steak and seafood restaurants, while strategically reviewing locations for its flagship Royal Host family restaurants.

International markets will account for roughly 80% of new restaurant openings as Royal Holdings aims to more than double its global footprint from four to ten countries or regions.

The largest portion of capital expenditure — ¥19 billion — will target the hotel sector, which has benefited significantly from the surge in foreign tourism to Japan. Plans include opening five new hotels, renovating existing Richmond Hotel properties, and exploring a new hotel concept featuring smaller rooms with enhanced common areas.

Royal Holdings has also formed a joint venture with Thailand’s Minor Hotels to develop luxury hotels in Japan and partnered with Japanese sushi chain Choushimaru and trading house Sojitz to launch Sushi-Ten USA in the American market.

The company projects consolidated sales of ¥187.5 billion and ordinary profit of ¥10 billion by December 2027, representing increases of 23% and 37% respectively from 2024 figures.

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