Hello, everyone. I am Takaku of Kyoritsu Maintenance. Thank you very much for participating in our briefing for the consolidated financial results for the fiscal year ended March 2023, despite your busy schedule. I will talk without a face mask. This time again, we have allowed sufficient space between your seats. I see wearing a mask, which has become a norm after the pandemic, is diminishing gradually these days, and many of the participants today are not wearing masks as well. I feel the society has finally started to go back to normal. As it has finally become realistic to come to the long-awaited end of the pandemic, we have started to take steps to recovery.
Under such a circumstance, in this briefing today, I'll report the summary of financial results for the fiscal year ended March 2023, where we have started to see signs of recovery from the pandemic, consolidated financial forecasts for the fiscal year ending March 2024, which will be the first year of the full-scale recovery, and a new medium-term management plan, which is our medium-term growth strategy for the future. First, I will explain about the summary of financial results for the fiscal year ended March 2023. I'll start with financial highlights.
This was the first year without movement restrictions for the first time in three years since 2019. There was increased demand for domestic travel, international students, and inbound tourists, mainly from Korea, Hong Kong, and Taiwan, as well as the effective measures to stimulate tourism demand, such as nationwide travel support, and economic activities were gradually normalized. On the other hand, we experienced uncertainty with such as surging costs for raw materials and energy and significant fluctuation of foreign exchange rates. Under such a circumstance, we recorded a V-shaped recovery due to the stable operation of the dormitory business, in which the number of Japanese students grew significantly, and the rapid improvement of the hotel business.
For dormitory business, the occupancy rate at the beginning of the period was 93.5%, up 1.4 points from the previous fiscal year due to the significant increase in the number of Japanese students. After that, with the easing of immigration restrictions in stages, international students have been continuously accepted. Next, for the hotel business, without the movement restrictions for the first time in three years, many customers used our facilities, thanks to measures to stimulate tourism demand, such as nationwide travel support and occupancy rate, and the average daily rate dramatically increased. With that, we could absorb the expenses for opening of 12 new facilities to record a significant increase in sales and profits.
As shown by the graph on the right, we recorded a V-shaped recovery in the real operational results after subtracting real estate sales and leaseback for the fiscal year ended March 2022. About the overview of consolidated financial results. Net sales were up 1.1% year-on-year to JPY 175.6 billion, and operating income increased JPY 5.8 billion to JPY 7.3 billion. To show the comparison in real terms, figures after excluding special factors are provided on the right. We did not implement real estate sales and leaseback in this fiscal year under review, so the figure of this item for the previous fiscal year is populated in column B as negative figure.
Next, as we opened 12 new facilities intensively in this fiscal year, increase or decrease related to new openings from the previous year is populated in column C. In column D, we populated increase or decrease of costs related to large-scale renovation to maintain and improve customer satisfaction, implemented mainly in Q4. Taking these three special temporary increase or decrease factors into consideration, net sales grew JPY 32 billion year-on-year. Operating income increased JPY 17.9 billion. This is the recovery in real terms. Please refer to the slide for other management indices. Next, I'll explain about the factors for deviation from operating income forecast. First, in the dormitory business, regrettably, the number of international students who came to Japan for fall enrollment and to our dormitories was slightly lower than our forecast.
With increased contract fee from Japanese students who move in in April, the full year result was almost in line with the plan, with just a slight shortfall to the plan. Next, for the hotel business, our original assumption for the forecast included the negative impact after the end of nationwide travel support in December. As you know, the measure continued this year, and also with the faster-than-expected recovery of inbound demand, the results exceeded that forecast substantially. Also, the request to extend the term of contract to accommodate COVID patients at Dormy Inn was another factor for the deviation. Other businesses were almost in line with the forecast. With that, operating income was JPY 1.8 billion higher than the forecast, which was revised in November.
On the next slide, net sales and operating income by business segment are provided in comparison with the previous fiscal year and with the fiscal year ended March 2019 before COVID. The dormitory business increased net sales compared to the pre-COVID level, partially due to the increased number of units, but operating income decreased due to a lower occupancy rate at the beginning of the fiscal year and increased energy cost. Compared to the previous fiscal year, net sales increased, but operating income was almost flat or slightly increased due to the energy cost increase or other factors. The hotel business has made a significant recovery year-on-year. Specifically, the recovery of Dormy Inn business was remarkable, and both of sales and profits increased compared to the previous year and the pre-COVID level.
As for other businesses, development business recorded a significant year-on-year decrease in sales and profits, mainly due to the real estate sales and leaseback implemented in the previous fiscal year. I'd like to explain by segment. First is the dormitory business. The occupancy rate at the beginning of the period, our KPI, was 93.5%, up 1.4 points year-on-year, and net sales increased by 6.6% year-on-year to JPY 50.35 billion due to higher occupancy rate at the beginning of the fiscal year, increased international students during the period as a result of easing of immigration restrictions, as well as the effect of increased units by 1,971 in 20 facilities.
Despite the increased net sales, operating income was just up 0.1% year-on-year to JPY 4.55 billion due to factors like the sharp rise in energy costs and increase in sales, promotion and repair expenses. On the next page, we provide the trends in our KPIs, the occupancy ratio at the beginning of the period and the number of leased units. At the beginning of the fiscal year ended March 2023, the number of leased units was up 2,213 units year-on-year to 40,615, and the occupancy ratio was 93.5%. During the pandemic, the safety and comfort of our dormitories were highly appreciated, and the number of Japanese students substantially increased by 2,152 from the previous fiscal year to 21,096 units.
For the fiscal year ending March 2024, as we continue to be highly appreciated from students and parents for the safety and comfort of our dormitories, the number of Japanese students increased by 1,199 to 22,295 units to record significant growth for two consecutive years. The number of international students continued to increase as well, thanks to the easing of immigration restrictions in stages since May last year, and as of April this year, it was up 1,604 year-on-year to 3,581 units. As a result, at the beginning of the period, the number of leased units was 43,254 units in total, up 2,639 year-on-year, and the occupancy ratio was up 4.7 points year-on-year to 98.2%.
As such, the business recovered almost to the pre-COVID level to start a new fiscal year. Next slide is about the Dormy Inn business. This fiscal year started without any movement restrictions for the first time in three years since 2019. Many customers used our facilities as they highly appreciated our unique services, such as a big bath with hot spa and authentic sauna, specialty breakfast with local delicacies, and midnight ramen noodles. We saw effects of measures to stimulate tourism demand, such as nationwide travel support, as well as increased demand from inbound tourists. As a result, RevPAR, obtained by multiplying the occupancy rate of existing facilities and Average Daily Rate, increased JPY 3,608 year-on-year to record sales increase of JPY 17.92 billion. Operating income improved by JPY 13.69 billion.
In this fiscal year under review, we newly opened seven facilities for 1,107 guest rooms, including four facilities of the Japanese premium hotel, Onyado Nono, and one roadside-type facility. For some facilities, we extended the term of contract to accommodate COVID patients at the request from the national and local governments. As a result, for the entire Dormy Inn business, net sales were up 63.4% year-on-year to JPY 57.66 billion, and operating income increased JPY 12.24 billion year-on-year to JPY 7.66 billion. Next slide shows quarterly trends in occupancy ratio and average daily rate, which are the KPIs of the Dormy Inn business.
We started this fiscal year without any movement restrictions for the first time in three years, and despite the increase of patients in the seventh wave of COVID from July to September, the occupancy ratio was beyond 85% throughout the fiscal year, and the average daily rate has been over JPY 12,000 since Q4, thanks to the positive impact from measures to stimulate tourism demand, such as nationwide travel support, as well as the rapid recovery of demand from inbound tourists. This is not described on the slide due to the space limitation, but in comparison with the fiscal year ended March 2019, which was without COVID impact for a full year, the occupancy rate was lower by about 4.4 points, but the average daily rate was about JPY 580 higher, or up 5%, and RevPAR was + JPY 17.
This means we have recovered almost to the pre-COVID level. As indicated here, the occupancy rate in April was slightly lower year-on-year. The average daily rate has significantly increased. This is due to the thorough revenue management to maintain and improve the top line while adjusting operations and improving both customer and employee satisfaction. I will explain more details later with the business forecast. As of May 20th, the occupancy ratio was 85.7%, and the average daily rate was JPY 14,360, which are significantly higher than the results in April. RevPAR by quarter for the Dormy Inn business. As shown here, this fiscal year performed much better than the previous fiscal year, and specifically since Q3, it has exceeded the level of 2019 before COVID.
Due to the effect of revenue management mentioned earlier, RevPAR maintained JPY 10,000 in April as well. In 2019, we recorded the highest RevPAR in April due to 10 consecutive holidays in April and May, and this fiscal year was almost on par with that level. Next slide is about evaluations and awards in the Dormy Inn business. Dormy Inn ranked first in JCSI, Japanese Customer Satisfaction Index, for three consecutive years, and it also ranked first in the Nikkei Business NPS survey for over 10,000 consumers. As such, we continue to receive a high evaluation from customers. In the NPS survey on the right, there are many detractors indicated by a blue face. We regard this as a room for improvement, and we will actively work to improve customer satisfaction further. Next is the resorts business.
Resorts business has also recorded a significant recovery as Dormy Inn business. For existing facilities, RevPAR increased dramatically by JPY 9,952 year-on-year. Net sales grew JPY 11.12 billion. Operating income improved JPY 6.51 billion. We opened five new facilities in areas with high demand from tourists, such as Kyoto, Tokyo, and Sapporo, for 1,027 rooms, which is the record high annual openings for the resorts business. As a result, the overall resorts business recognized net sales of JPY 43.38 billion, up 57.9% year-on-year. Operating income improved by JPY 2.71 billion to -JPY 2.15 billion, with a cost increase in preparations for new openings. Next slide shows quarterly trends in occupancy ratio and average daily rate, which are KPIs for the resorts business.
Same as Dormy Inn, we could start the fiscal year without any movement restrictions for the first time in three years, and with the nationwide travel support and higher demand from inbound tourists, many customers used our facilities, resulting in a significant year-on-year increase in both occupancy ratio and average daily rate. As a result, compared to the pre-COVID 2019 results, while the occupancy ratio was lower by about 5 points, the average daily rate increased by about JPY 2,700, or up 7%. The results in April are provided on the slide, and for May, we have made good progress with the occupancy ratio of 74.5%, and the average daily rate is JPY 52,560 as of May 20th. Next slide shows the trend of RevPAR for the resorts business.
This fiscal year under review has recorded much higher numbers year-on-year. Specifically since last November, RevPAR has been higher than the pre-COVID 2019 level. Next slide is about evaluations and awards in the resorts business. We received high evaluations in such as Japan Brand Collection 2023, JTB's Choice for Best Service Ryokan Hotel, Rakuten Travel Awards, and Everybody's Choice Onsen Grand Prize. Other than the hotel shown on the slide, Kyoritsu Resort has many good ryokan and hotels. We will continue to actively work to improve our products and services and customer satisfaction so that all of our hotels can receive high evaluations. Next, I will explain about the balance sheet and Net D/E ratio.
Total assets as of the end of March was JPY 272.3 billion, increased by JPY 30.5 billion from the end of the previous fiscal year due to increased cash and deposits. Liabilities also increased, but net interest-bearing liabilities decreased JPY 300 million from the previous fiscal year to JPY 97.9 billion, and Net D/E ratio was 1.31 x. We will strive for achieving Net D/E ratio of less than 1, which has been our financial index for appropriate financial operations since before the pandemic, by continuous efforts to recover the financial performance early as well as control interest-bearing debt. I'll explain about dividend.
Our decision of profit distribution is based on the philosophy to return earnings to shareholders through dividends linked to business results and earnings, and a core policy of steady and stable returns to shareholders over the long term. In this fiscal year under review, we increased the year-end dividend by 2 JPY per share from the initially planned 10 JPY, and with the interim dividend, 22 JPY per share will be paid out annually, up 10% year-on-year. As a result, the payout ratio for this fiscal year will be 20.2%. That is all for the explanation of the summary of financial results for the fiscal year ended March 2023. Next, President Nakamura will explain about the consolidated financial forecast for the fiscal year ending March 2024, and the new medium-term management plan.
Thank you. I am Nakamura. I'll explain about the consolidated financial forecast for the fiscal year ending March 2024, and the new five-year medium-term management plan starting from the current fiscal year. First, I will explain three major points in the consolidated financial forecast. First point is dormitory business. The number of leased units with Japanese and international students has increased significantly from the previous fiscal year, and the occupancy rate at the beginning of the period was up 4.7 points year-on-year to 98.2%. With this recovery to the pre-COVID level, we expect increase in sales and profits. However, it would take a certain time in price optimization to address cost increases such as energy costs. Therefore, recovery of profitability will be a challenge. Second point is hotel business. Domestic demand is recovering for business and leisure, and the demand from inbound tourism is recovering rapidly.
With that, RevPAR of both Dormy Inn and Resorts businesses will increase. We expect a V-shaped recovery will continue from the previous fiscal year to the pre-COVID profit level in the overall hotel business. Based on this assumption, the number of international visitors to Japan in 2023 is estimated about 20 million, and increasing costs like energy costs will be included, same as the dormitory business, and this is planned to be absorbed by optimizing the price. Third point is temporary or unexpected expenses. In the previous fiscal year, we offered some Dormy Inn facilities to be used as accommodations for COVID patients at the request from local government, and we include cost increase to resume normal operations of those facilities, as well as increasing costs for large-scale renovation to improve customer satisfaction in existing facilities, mainly hotels, utility expenses, and labor costs.
Next, I will explain the factors to increase or decrease profits in this forecast. Net sales are estimated as JPY 19.8 billion, operating income is JPY 10 billion. With adjustment for the earlier mentioned temporary and unexpected factors and year-over-year increase or decrease of expenses for new openings, we provide the change in real profitability by a chart and numbers on the right. With the adjustment of extraordinary increase or decrease factors of large-scale renovation, energy costs, accommodations for COVID patients, and new openings, increase of net sales is JPY 21.9 billion, and operating income increase is JPY 3.1 billion, both in real terms, and we consider this will be the real profitability for the current fiscal year. Capital investment is planned to be JPY 20 billion for sustainable growth in the future.
Dividend is planned to be increased by JPY 10 from the previous fiscal year to JPY 32 per share, based on the policy of stable returns to shareholders over the long term. Next, I will explain the forecast for net sales and operating income by segment in comparison with the previous fiscal year and the pre-COVID fiscal year ended March 2019. Numbers for dormitory and hotel businesses are provided here, and the largest profit recovery in the current fiscal year will be in the resorts business under the hotel segment, which is expected to increase JPY 2.9 billion year-on-year. I'll explain more details later. Comprehensive building management business is expected to increase net sales by recovery in cleaning services with the improvement in the occupancy ratio of hotels, as well as revenue from large-scale renovations. However, it expects slight decrease in operating income with increasing costs.
Food service business expects to recover its performance due to recovery of restaurant operations at hotels with the recovery of hotel guests, as well as recovery and normalization of visiting customers to restaurants. Development business expects profit increase due to increased construction works for development and opening of new facilities. For the current fiscal year, we do not include revenue from the real estate sales and leaseback business. Others business expects profit decrease, reflecting expenses for openings of two new facilities for 240 units in the senior life business. Next slide shows the forecast for quarterly operating income by major segment. The previous fiscal year started without any movement restrictions for the first time in three years, and afterwards, there were measures to stimulate tourism demand, such as Prefectural Discount, Block Discount, and Nationwide Travel Support.
Since October, inbound tourist demand recovered rapidly after the elimination of the COVID-related border control. Please refer to the forecast considering these factors. First, in the dormitory business, the occupancy ratio at the beginning of the period and the number of leased units increased year-on-year to absorb the energy cost increase, and operating income is expected to recover gradually year-on-year until Q3. In Q4, we expect revenue increase from so-called entry fee revenue, which is generated by increase in new contracts for new facilities to be opened in the next fiscal year and increase of leased units with Japanese students in existing facilities. In total, we estimate operating income will increase by JPY 600 million.
The Dormy Inn business expects expenses for preparation to resume normal operations in facilities used for COVID patients with the contract expiry and increase of variable costs, as well as expenses for large-scale renovation to improve customer satisfaction. These factors will be absorbed, and we expect operating income growth by higher RevPAR. On quarterly basis, Q3 and Q4 are indicated with decline year-on-year. This is because we reflect the absence of measures to stimulate tourism demand, such as nationwide travel support mentioned earlier. Next is the resorts business. In the previous fiscal year, we recognized expenses of JPY 3.3 billion in total for new facility openings over 1,000 rooms, which had been postponed to the previous fiscal year due to the pandemic. In the current fiscal year, new facility openings have slowed down.
The difference of the expenses will be the factor for a significant profit increase year-on-year. In addition to the effect of increased number of guest rooms, we include significant profit increase with the recovery of RevPAR in the high season for summer leisure in Q2. We expect profit recovery of JPY 2.9 billion for full year. In other business, we estimate a year-on-year decrease, and this is due to expenses for new openings in the senior business and allowance for the year-end bonus associated with increased profit. From this page, I will explain increase and decrease factors for net sales and operating income by segment.
First, the dormitory business. In the current fiscal year, with a significant increase in the number of these units with Japanese and international students, the occupancy rate at the beginning of the period was 98.2%, as mentioned earlier. We exercised our strength of safety and comfort during the pandemic, we will offer it to more customers. Also, we will address cost increase, such as energy costs, promote improvement of customer satisfaction and productivity by utilizing DX, such as Domico, an application dedicated to support dormitory life, as well as work on optimization of the price.
With these measures, net sales are expected to increase by JPY 1.17 billion by 12 new facility openings in the current fiscal year for 1,037 rooms, and also to increase by about JPY 1.4 billion due to the increased occupancy rate at the beginning of the period. With these factors, net sales for the current fiscal year are projected to increase 4.5% year-on-year to JPY 52.61 billion. For operating income, we include the cost increase, such as energy costs, and operating income is expected to increase 14.7% year-on-year to JPY 5.22 billion. Next, Dormy Inn business.
As for business environment, in addition to extension of measures to stimulate tourism demand, such as a national program to support the travel industry, recovery and upward trend of travelers to Japan from overseas became clear. We recognize market recovery trend is getting stronger. Firstly, existing facilities. Sales will grow by JPY 4.33 billion due to assumed JPY 477 year-on-year increase in RevPAR. Operating income will be up JPY 2.03 billion. In this fiscal year, we'll open four new facilities, including Dormy Inn Aomori, Nono Beppu, Dormy Inn EXPRESS Toyohashi, and Nono Asakusa Bettei, the second facility in Asakusa. The total sales of these four facilities will be JPY 790 million. On the other hand, we forecast opening preparation cost of JPY 340 million.
The factors pushing up costs include variable costs associated with the end of facilities for COVID patients and resumption of normal operation of JPY 1.77 billion, increase in energy cost of JPY 440 million, and increase in cost for large-scale renovations of JPY 340 million. In total, JPY 2.55 billion. We expect top-line growth through optimization of prices based on thorough revenue management will offset increasing energy and other costs. As a result, in Dormy Inn business in total, net sales will be JPY 64.2 billion, up 11.5%, and operating income will be JPY 7.76 billion. Resorts business. As with Dormy Inn business, a clear recovery trend is seen in the current business environment, and we expect this trend will continue.
In existing facilities, sales will grow by JPY 3.73 billion due to assumed JPY 3,437 year-on-year increase in RevPAR. Operating income will improve by JPY 2.2 billion. We will open La Vista Kannonzaki Terrace in this fiscal year. We also plan guest rooms where guests can enjoy glamping and a panoramic view of Tokyo Bay. We'll open only this facility in this fiscal year, and sales of this facility will be JPY 470 million. Opening preparation cost will be JPY 320 million. The factors pushing up cost include increase in cost for large-scale renovations to enhance customer satisfaction of JPY 700 million, and increase in energy cost of JPY 280 million.
As with Dormy Inn business, we expect top-line growth through optimization of prices based on thorough revenue management will offset increase in cost. As a result, in Resorts business in total, net sales will be JPY 53 billion 50 million, up 22.3%. Operating income will recover and increase JPY 2 billion 930 million to JPY 780 million. This slide shows quarterly trends in RevPAR. KPI of Dormy Inn from pre-COVID fiscal year ended March 2019, in chronological order. The top graph shows trends in KPI for 6 fiscal years from pre-COVID fiscal year ended March 2019. The blue box in the bottom table shows plan for this fiscal year. The red box indicates comparison with pre-COVID fiscal year ended March 2019 and with the previous fiscal year.
Occupancy rate plan for this fiscal year is about 3 percentage points lower than pre-COVID fiscal year ended March 2019. It is because we will adjust occupancy, hoping guests will relax in large hot spring bath and restaurants to enhance customer satisfaction and employee satisfaction, as I mentioned earlier. While adjusting occupancy, we'll increase ADR to JPY 12,000 by ensuring revenue management. As a result, RevPAR will be JPY 10,500, up 5%. We expect year-on-year reactionary drop from effects of measures to stimulate tourism demand, such as a national program to support the travel industry. However, partly due to enhancing inbound demand, we expect full year RevPAR will increase JPY 400 year-on-year at minimum. If inbound demand grows more than our expectation, it will lead to upside in sales and profit.
Overall, by reflecting outlook of business environments, including market and competitive landscape, we calculate occupancy rate and ADR. Sales are based on RevPAR, which is multiplication of these two. By calculating cost, we set profit targets. Practically, we break down targets into each hotel and each month. With this indicator as a benchmark, we want to work on agile and flexible performance management. This slide shows quarterly trends in KPI in resorts business. We factor in a reactionary drop from effects of measures to stimulate tourism demand implemented in the previous fiscal year. As with Dormy Inn, we will optimize prices through thorough revenue management for each facility. Full year RevPAR will increase 9% from pre-COVID level and increase 10% year-on-year to JPY 38,400.
As reported earlier, in the recent months of April and May, all the KPIs are slightly higher than planned, showing a strong start. As with Dormy Inn, we work on agile and flexible performance management during the period. This slide shows a list of dormitory and hotel development plans. Facilities indicated with L on the left show properties developed under a leasing agreement, which is our business model. Others are CapEx projects, assuming acquisition of land and building ownership or leasehold. As you see, in fiscal year ending March 2024, we opened 12 facilities with 1,037 rooms in dormitory business in April, the beginning of the fiscal year. For hotels, we will open four facilities with 768 rooms of Dormy Inn in November and after in sequence. For resorts, we'll open one facility with 75 rooms in this fiscal year.
I'll report on development plans for the next fiscal year onwards in my explanation and new medium-term management plan later. That's all for forecast for fiscal year ending March 2024. Thank you very much for your attention.