A new style of minimalist hotel, designed especially for tourists
Copyright KARAKSA HOTELS Corporation 1
Copyright KARAKSA HOTELS Corporation 2
Simple and stylish: Japanese modern spaces for relaxation The karaksa motif adds elegant flair to the hotel ambiance. Copyright KARAKSA HOTELS Corporation 3
Guest rooms over 20 m2. A variety of room types to suit travelers needs Connecting rooms Connecting doors are equipped between the majority of our guest rooms. Ideal for families and group travelers who require more space to enjoy their stay together. In the connecting rooms, guests can use bathrooms in two locations, making them convenient for larger groups. Twin rooms as karaksa standard Copyright KARAKSA HOTELS Corporation karaksa hotels are designed for tourists. Instead of single rooms, we have made twin rooms our standard. 4
Separated restrooms and showers. Our simple yet functional guest rooms are perfect for group use Internet connection We offer a pleasant and fully equipped internet environment, with free Wi-Fi provided throughout the hotel and USB ports in the headboards of all guest rooms. Bulky suitcases fit neatly under the bed. (Kyoto, Osaka Shinsaibashi, Kansai AIr Gate) Smartphones for guests allow free calls to five countries overseas FREE Wi-Fi and domestically. (Sapporo) Shower rooms A user-friendly design with shower rooms separated from sinks and toilets. Copyright KARAKSA HOTELS Corporation 5
A breakfast buffet and our hotel facilities make your stay more comfortable Restaurant Buffet-style breakfasts are provided in the bright, open restaurant, which offers mainly western food. (Osaka Namba) A pristine lobby greets guests upon arrival, with a design focused on unvarnished, natural wood. The breakfast menu is labeled for those with allergies or religious dietary restrictions. We also have a Leisure Space where guests can Copyright KARAKSA HOTELS Corporation relax (Osaka Shinsaibashi) and a laundry corner that is convenient during longer stays. 6
Creating new facilities at karaksa hotel Sapporo is the next step in our initiatives A space for relaxation Room R is designed with the theme of Japan Meets Hokkaido. It is available around the clock, perfect as a meeting spot, or a place to relax after a bath. There are a total of eleven Japanese-style rooms, recommended for families with small children and for foreign visitors who wish to experience Japanese culture. Rooms accommodate up to four people. karaksa Hot Bath: Large and outdoor baths will soothe the fatigue of your journey. The Room R is fitted with Asahikawa furniture and kotatsu Copyright KARAKSA HOTELS Corporation tables built into the floor. Vending machines stocked with Hokkaido-exclusive drinks are also available. 7
We provide a full range of services for overseas visitors to Japan Front desk We have a diverse staff of foreign nationals, who are able to help guests in multiple languages. Prayer rooms are provided for Muslim guests and Qibla locators that show the direction of Mecca. (Osaka Shinsaibashi and Kyoto) All rooms are equipped with universal outlets that are compatible with appliances brought from overseas. Copyright KARAKSA HOTELS Corporation We have also introduced a system that allows video calls to professional interpreters. Our hotels are conveniently located with easy access to places popular with overseas travelers. 8
Launched in Osaka and Kyoto in March 2016. Our hotel business is developing through various schemes Our rapid business expansion leverages the strengths of the Xymax Group. We offer optimal solutions for both conversions and new developments, suited to individual landowners needs. Copyright KARAKSA HOTELS Corporation 9
Plans for hotel expansion throughout Japan We have plans to develop ten new hotels across the country. Copyright KARAKSA HOTELS Corporation 10
Examples of office buildings converted into hotels The karaksa hotels in Osaka and Kyoto were created by converting office buildings whose utility value had diminished. A bright restaurant that makes the most of warm wood tone. Expressing modern Japanese style through monochromatic coloring. Copyright KARAKSA HOTELS Corporation Bright, clean entrance. A rock garden and traditional bamboo fencing heighten a sense of expectation for visitors to Japan. Remodeled elevators offer a calm and welcoming atmosphere. 11
A commercial building converted into a hotel In a unique project for Japan, we converted a roadside retail electronic store into a hotel. Despite the large-scale construction involved, the karaksa Spring hotel Kansai Air Gate was completed in approximately nine months. The 7m-tall single floor structure was converted into two floors, and the spacious premises allowed for a parking lot accommodating 15 buses and 60 cars. The building interior was remodeled to include 139 guest rooms, with connecting rooms perfect for group use. Three elevators were installed, including one for the disabled. Ramps were also built next to the spacious restaurant area. Copyright KARAKSA HOTELS Corporation 12 Atrium construction lets natural light into the guest rooms. Bright, modern Japanese guest rooms, with 110 connecting rooms.
Newly constructed hotels give shape to ideas realized through conversions Ideas debuted through three hotel conversion projects were brought together, giving shape to newly constructed karaksa hotels. karaksa hotel Osaka Namba Spacious lobbies make even group check-ins smooth. Bright, open restaurants flooded with sunshine from south-facing windows. Five minutes on foot from Dotonbori and Shinsaibashi-suji shopping street. Out of 112 rooms, 80 may be used by up to three guests. Our popular connecting rooms accommodate up to six people. 64 rooms available. karaksa hotel Sapporo Another entrance that opens onto the Tanukikoji Shopping Arcade. Fully-equipped with large and outdoor baths, and a space for relaxation. Copyright KARAKSA HOTELS Corporation A perfect base for sightseeing, located near Susukino and Odori Park. Eleven diverse room types, including Japanese-style rooms. A breakfast buffet that offers Japanese, Western and Chinese food. 13
Business results for FY 2017 reflected karaksa hotels unique characteristics The target demographic for karaksa hotels is domestic and foreign tourists. This clear concept, combined with convenient locations, connecting rooms and other unique facilities, was very popular with the target demographic, resulting in favorable business results for FY 2017. Occupancy rates and length of stay Ratios by country for each hotel April 2017 to March 2018 April 2017 to March 2018 Sapporo Kyoto Osaka Nambe Osaka Shinsaibashi Copyright KARAKSA HOTELS Corporation 14 Average for all hotels Occupancy rate: 86.6% Length of stay: 1.56 nights The majority of guests were foreign visitors, and the average length of stay was long. Kansai Air Gate Average for all hotels Ratio of foreign guests: 84.0% Overall, Asia held the largest segment, but characteristics differed by hotel.
The global tourism market continues to expand. Our focus is on the inbound market International traveler numbers The global market for international travel is expanding, with tourists from East and Southeast Asia driving market growth. Source: UNWTO (The United Nations World Tourism Organization) Growth in the Japanese inbound market The number of foreign visitors to Japan reached a record high of 28.7 million in 2017. Japan's inbound tourism market is anticipated to continue growing in the future. Copyright KARAKSA HOTELS Corporation 15 Source: JNTO (Japan National Tourism Organization) / The Japan Tourism Agency
A focus on visitors from East and Southeast Asia, who are driving the foreign travel market East and Southeast Asian populations, and trends in per capita GDP East Asia is large in terms of overall volume, while the Southeast Asian countries have younger demographics and potential for growth. In the future, both populations and earnings will grow, and the number of international travelers is anticipated to increase explosively. Source: United Nations, IMF (International Monetary Fund), World Bank, etc. [Note] Average ages for 2016 are figures from 2015. Source: IMF (International Monetary Fund) Current state of the international tourism markets in Asia In countries where per capita GDP is less than 10,000 USD, the majority of citizens have never traveled overseas. There is rich latent potential for travel to Japan from these countries. Copyright KARAKSA HOTELS Corporation 16 Source: United Nations, IMF (International Monetary Fund), World Bank, Japan Tourism Agency, etc.
One-stop shop for all hotel operations and services From hotel development to operations, the Xymax Group provides a complete range of services leveraging the functions, wealth of experience and expertise of each Group company. Copyright KARAKSA HOTELS Corporation 17
karaksa hotel creates new value for Japanese hotels with travelers as our main target Company Profile Company Name (Japanese Name) 株式会社からくさホテルズ (English Name) KARAKSA HOTELS Corporation Established October 15, 2015 Capital 10 million yen Shareholders XYMAX Corporation (100% investment) Address 1-1-1 Akasaka, Minato-ku, Tokyo, Japan 107-0052 Telephone +81 3 5544 5813 (Main) Facsimile +81 3 5544 5814 URL karaksahotels.com Business Services Hotel management / operations management Board of Directors Ryosuke Sato, President, Representative Director Fumihiro Sasaki, Director Kazuya Sugimoto, Director Hideki Fukae, Director Kenji Yoshimoto, Director Copyright KARAKSA HOTELS Corporation As of June 20, 2018 18