Chapter 1084 Prince Hotel +
Mizu Financial took over the entire Seibu.
They sold some of Seibu's assets, especially closing and selling some ski resorts and golf courses that were suffering serious losses.
After two fire sales by Yoshiaki Tsutsumi and Mizue, Seibu’s total assets now remain at US$61.7 billion. Excluding virtual assets such as goodwill, there are only US$48.9 billion.
Total liabilities are US$27 billion.
The debt ratio is 55.2%.
It doesn’t sound high, but if interest is calculated, the debt ratio will exceed 60%.
In addition, in the early stage, Yoshiaki Tsutsumi borrowed about US$5 billion in high-interest loans in order to repay some due debts, which undoubtedly increased the difficulty of Seibu's debt repayment.
If leveled, Seibu will have to repay a total of US$32 billion in debt over the next five years.
Let’s look at revenue.
Seibu's revenue is divided into two parts.
One is the revenue from the ‘Seibu Department Store Series’.
One is the revenue of ‘Prince Hotels & Resorts’.
After years of fire sales, Seibu only has these two core assets left, and the rest have been sold out.
Let’s first look at the revenue of the ‘Seibu Department Store Series’.
The reason why I say series.
Mainly because it contains many subsidiaries with Seibu Department Store as its core.
Such as Seibu Railway, Seibu Bus, Muji and Yoshinoya.
In fact, the core enterprise before the ‘Seibu Department Store Series’ was not Seibu Department Store, but Seibu Railway.
The railway is the subway.
Unlike China, Japan's subways are allowed to be privately owned.
Many large department stores, such as Seibu, Tobu, Hanshin Hankyu, etc., if you peel off the skin of these large department stores, you will find subway companies inside.
If you want to get rich, build roads first. This principle can be said to be true everywhere.
When there is convenient transportation, wealth will come.
In order to make money, these subway companies develop developments along the subway lines. Therefore, many subway station exits in Japan are located in department stores, super large hotels, stadiums, parks, etc., all located above subway stations.
Seibu is a typical example.
The two major amusement parks, Seibu Department Store, Prince Hotel, Toshima-en and Seibu-en are basically like this.
After years of development, the total length of Seibu Railway's existing routes is 179.8 kilometers, and the operational route is 176.6 kilometers long.
It is mainly divided into Ikebukuro Line and Shinjuku Line.
It has 1238 vehicles of various types.
and 14 vehicle bases.
Only the subway is not enough, buses, that is, buses are also a necessary supplement to public transportation.
So in addition to the Seibu Railway, there are also the huge Seibu buses.
The latter, like Seibu Railway, is mainly located in Tokyo and Saitama Prefecture. It operates commuter buses, sightseeing buses, long-distance buses, and also rents buses.
It owns nearly 1,500 buses of different types.
Annual revenue is about 4 billion Chinese dollars.
Plus MUJI and Yoshinoya.
The total revenue of the five major companies in the "Seibu Department Store Series" has exceeded 10 billion US dollars.
However, the revenue of Seibu Railway and Seibu Bus is limited, and the retail profits of Seibu Department Store and Muji are too low.
Net profit was only US$1.55 billion.
Xu Liang put down his pen.
The entire series, Seibu Department Store is the absolute core.
The total revenue of nearly 7 billion US dollars accounts for 70% of the total revenue.
Seibu Department Store has two major series.
Seibu and Sogo.
Seibu specializes in high-end department stores and has 24 stores in Japan, which are basically self-owned properties.
Xiangjiang and Seibu Department Store in Mainland China are both Pan Dickson's industries.
As early as the 1990s, Dickson Pan's Dickson Construction acquired the overseas operating rights of Seibu Department Store.
Counting these stores that pay licensing fees, there are a total of 32 Seibu Department Stores.
Xu Liang doesn’t care about Seibu Department Store overseas, and is even a little lucky.
Seibu Department Store is still profitable in Japan, but it is almost dead in China.
Looking at the information on the 24 Seibu department stores, Xu Liang couldn't help but think to himself.
"I would like to thank Tsutsumi Yoshiaki."
This ambitious guy wants to be first in everything.
The reflection in Seibu Department Store is its huge business area.
The construction area of ordinary department stores in Japan is basically 30,000 to 40,000 square meters, and more than 50,000 square meters is considered huge.
But Tsutsumi Yoshiaki is different.
The main store in Ikebukuro is nearly 200,000 square meters, the Shibuya store is nearly 110,000 square meters, the Osaka store is 100,000 square meters, and even the smallest Nagasaki store is 65,000 square meters.
The total operating area of the 24 stores is 1.84 million square meters. They pinned Yoshiaki Tsutsumi's ambition to become Japan's high-end retail giant.
He almost succeeded.
In the 1980s, Seibu was the number one high-end department store in Japan.
It’s a pity that the fruit of victory was knocked out of the clouds by the square agreement written by the American father not long after he tasted it.
But for Xu Liang.
These huge department stores gave him enough room for renovation.
If it is well designed, it will be enough to become a commercial center that dominates the ‘one-stop home shopping and leisure entertainment’ within a five-kilometer radius.
Instead, it was Sogo Department Store, which was merged later.
Unlike the Seibu Department Store located above the subway, Sogo is just a simple department store.
And the ratio of self-owned properties is far from 100% like Seibu. Except for stores located in the core areas of the city, everything else is leased.
At its peak, Sogo Department Store had nearly 30 stores in Japan and 25 overseas.
In 2000, Sogo Department Store, which was unsustainable, went bankrupt.
Then it was merged with Seibu Department Store.
After the merger, Seibu Department Store is trying to reduce expenses.
Closed all stores under Sogo Department Store that did not have property rights.
It directly reduced the number of SOGO department stores in Japan to 11, and there were only 12 left overseas.
Excluding overseas stores that are only authorized but not actually operated.
There are 33 SOGO Seibu department stores domestically and 21 overseas, totaling 64 stores.
However, there are only 9 SOGO department stores directly operated overseas.
It needs to be emphasized that the commercial area of Sogo Department Store is far less huge than that of Seibu Department Store. The main store in Osaka is only 84,000 square meters, and the rest are basically around 40,000 to 50,000 square meters.
There are 11 stores with a total business area of only 634,000 square meters.
In terms of business area, Sogo Seibu Department Store is the largest department store chain in Japan.
In terms of turnover, it is second only to the department store giant Takashimaya.
If there were no debt of nearly 10 billion US dollars, this would be an enviable huge asset.
Xu Liang flipped through the pages and circled the name of Seibu Department Store in Saitama County with a pen.
I thought about it and crossed it out.
“Let them decide which one to use for the pilot.”
Then there is the ‘Prince Hotel & Resort’.
To be precise, it should be ‘Prince Hotel+’.
Prince Hotel + Ski Resort.
Prince Hotel + Golf Course.
Prince Hotel + Amusement Park.
Prince Hotel + Water Park.
Prince Hotel + Aquarium and more.
Some only have hotels + one business format, and some have two, three, or even more composite business formats.
Of course, not all prince hotels have additional business formats, but this type of resort-style prince hotels account for the vast majority.
Just like some Prince Hotels are purely commercial luxury hotels, there are also some businesses that exist independently.
For example, Toshima-en and Seibu-en under Seibu.
The former opened in 1921 and has a diameter of more than 80 years, creating many firsts in Japan.
The world's first indoor ski resort.
The world's first mobile swimming pool and more.
At its peak, Toshimaen had more than 4 million visitors every year and was the back garden of Tokyoites.
Unfortunately, even with repeated repairs, the park’s facilities are inevitably aging.
Plus consumption downgrade.
Currently, the annual number of admissions has dropped by half.
Then there is Seibu-en. Although Seibu-en is not as good as Toshima-en, which covers an area of 270,000 square meters, it still has 210,000 square meters.
Apart from Disney, they are the two biggest.
Xu Liang briefly divided the tourism assets under Seibu.
It can be roughly divided into 34 pure business hotels, 39 resort hotels, and two giant amusement parks.
From this perspective, Prince Hotels Group and Global Travel Group are really similar.
It’s just that the latter does not have a pure business hotel business.
As for the integration of the two families?
Xu Liang simply gave up the idea.
Global Travel Group has many red tourism industries, and it is impossible to hand them over to Japanese companies for operation, otherwise once they are exposed, the business will be greatly affected.
Writing and drawing, the Seibu Group’s integration plan gradually took shape in my mind.
(End of this chapter)