Established in 1630, Hakone Ryokan 'Ichinoyu' Announces '10 Billion Yen Declaration' for 2030, Transforming Business Model into Hotels and Private Villas

Ichinoyu Co., Ltd. (Headquarters: Hakone, Kanagawa; Representative Director and President: Takaya Ogawa), which operates hot spring inns and villas in the Hakone area, announced that it has been recognized as a company under the '10 Billion Declaration' promoted by the Organization for Small & Medium Enterprises and Regional Innovation, Japan. Aiming to achieve 10 billion yen in sales by 2030 (compared to 2.8 billion yen in the fiscal year ending December 2025), the company is moving away from its traditional ryokan-centered business model. It will full-scale diversify into hotel operations and private villa rentals, shifting toward a structure that balances high profitability and growth through integrated management and standardized operational know-how.

Background and Challenges While the company has focused on hot spring inns in the Hakone area, the traditional ryokan format struggled to meet diverse modern needs, such as long-term stays and full private spaces. Furthermore, reliance on manual labor methods limited the efficiency of profit generation, leading to stagnant growth. To overcome these issues and achieve leapfrog growth, the company issued this declaration.

Growth Strategy toward 2030 While maintaining existing ryokan businesses as a stable revenue foundation, the company will implement the following:

1. Portfolio Optimization and Increased Unit Prices The company will expand the 'hotel business' as a growth driver and develop private villas as a high-value-added domain. For instance, 'ICHI-VILLA CROSSROAD HAKONE' began offering premium experiences like Yonezawa beef BBQ plans and new skincare amenities in April 2026, boosting customer spending.

2. Integrated Management and Standardization The company is building a new headquarters structure that integrates three business formats: ryokans, hotels, and villas. By standardizing know-how to ensure repeatability in multi-store expansion, it aims to establish a leaner foundation that balances labor-saving with profit generation. It will also strengthen its development functions from property acquisition to planning.

CEO Comment 'This 10 billion yen declaration is not just about sales expansion. It is a promise to society to make lodging not just a special occasion but an extension of daily life, offering rich experiences by breaking fixed stereotypes of price and value.'

Company Profile Centered on the historic 'Ichinoyu Honkan' founded in 1630, the company currently operates 9 inns and 1 villa in Hakone.