Hello, everyone. My name is Manabu Takaku of Kyoritsu Maintenance. Thank you very much for attending today's financial briefing on consolidated financial results for the first half of the fiscal year ending March 2023. The past two years of the COVID pandemic must have made you worry about our company's prospect, but we are finally seeing the light at the end of the long tunnel. We're going to give you details of the financial results, but I just want to express our commitment to take back the last two years of COVID. We will work steadily and swiftly to do so. Thank you in advance for your continued support. In this briefing, I will give you a summary of financial results for the first half of this year.
President Nakamura will talk about our projected consolidated financial result for this fiscal year and our policy for formulating a new midterm management plan. Let me start with a summary of the financial results. First, the highlights. In the first half of this fiscal year, we've had no COVID restrictions for the first time in three years since 2019. We are seeing travel restrictions phasing out and the government's regional travel promotion programs being rolled out. We are beginning to see normal socioeconomic activities. Soaring energy prices stemming from the Russian-Ukrainian problem and significant exchange rate fluctuations made the future outlook uncertain. Under these circumstances, the stable operation of the dormitory business, mainly for Japanese students, and the strong upturn in the hotel business enabled us to return to profitability for the first time in three years. Some highlights by segment.
In the dormitory business, the occupancy rate at the beginning of the period was at 93.5%, up 1.4 points from the previous year due to a jump in the number of Japanese students. We saw the gradual easing of immigration restrictions and an increase in the number of foreign students. The hotel business operated in the first period without COVID restrictions in three years. It returned to profitability as much higher occupancy rates and the average room rates more than offset the cost of opening seven new hotels, thanks in part to the government's tourism promotion measure. This is a summary of consolidated financial results and the main financial indicators. Net sales rose 22.7% year-on-year to JPY 83 billion.
Operating income was JPY 3.9 billion, up JPY 9.5 billion from the same period last year. To make a year-on-year comparison in real terms, the figures excluding one-time factors are shown in the blue box. There was no leaseback of real estate in the current period. Leaseback of real estate in the first half of last year are shown as negative figures in column B. Last year's real estate leaseback covered Kyoritsu Resort Keiun and Tsukiyo no Usagi near the Izumo Taisha Shrine. We had as many as seven new openings in the current period. The amount of change in opening costs from last year is shown in the C column. Last year, we opened Nono Kanazawa in July and Kusatsu Hills in September.
Excluding these two special factors, the actual improvement would be an addition of JPY 11.8 billion in operating income on additional net sales of JPY 18 billion. Since we achieved the full year earnings forecast early by the end of the first half, we have revised the full year consolidated forecast announced May 13th. The revised forecast is shown in the red box on the far right. President Nakamura will give you details of the latest forecast in a minute. Other key indicators are shown in the table. Next, I will explain why our operating income deviated from our forecast. In the dormitory business, the number of foreign students who check into our dormitory since May exceeded the plan due to the easing of immigration restrictions to Japan. A rise in energy cost was less than an assumed rise of 35% from last year.
As a result, we were able to outperform the plan. Next, in the Dormy Inn business, the number of guests exceeded the plan by a large margin, thanks to the government's tourism promotion measures, such as the discounts for regional travel. In addition, requests for extending an agreement for COVID-related accommodation and recuperation facilities also helped. We were expecting a dramatic improvement in the occupancy rate and average room rate in the resort business during this period, given no COVID restriction for the first time in three years. The recovery was slowed by a resurgence of infections, which started in late June, and we fell short of the plan. Other businesses exceeded the plan driven by the food and Public Kyoritsu Partnership or PKP businesses as socioeconomic activities are returning to normal.
In the budding senior life business, we opened two facilities with a total of 103 rooms as planned. That has made operating income about JPY 1.7 billion higher than our initial forecast. This slide shows net sales and operating income by segment compared to the first half of last year and of the year ending in March 2019, a pre-pandemic year. As you can see, in the dormitory business, sales have already exceeded the pre-pandemic level, helped by the room additions. Operating income dropped due to the lower occupancy rates and increased energy costs. The dormitory business is expected to see a year-on-year increase in profit for the full year. The hotel business has made a remarkable recovery from the previous year. In particular, the recovery of Dormy Inn business was outstanding.
Both sales and profit have exceeded those in last fiscal year as well as the pre-pandemic year ending March 2019. The reason for our large year-on-year drop in sales and profit in the development business is, unlike last year, we do not have real estate leaseback this year. I'll now explain each business segment more in detail. First, in the dormitory business, the occupancy rate at the beginning of the period, one of our KPIs, was 93.5%, up 1.4 points from the previous year's start. Net sales increased 7% year-on-year to JPY 24.91 billion. This is thanks to an increase in the starting occupancy rate and an increase in foreign students during the period. It is also attributable to the opening of 20 facilities with 1,971 rooms.
Despite increase in revenue, operating income decreased by 10.8% year-on-year to JPY 2.23 billion due to the impact of a sharp rise in energy cost and increased sales promotion and repair expenses. This slide shows the initial number of leased units and occupancy rate. These are KPIs for the dormitory business. The initial leased units totaled 40,615 rooms, up 2,213 rooms year-on-year. The starting occupancy rate was 93.5%. The number of rooms occupied by Japanese students climbed to 21,096, up 2,152 rooms from the previous year, thanks in part to safety and security of our dormitories. In addition, the number of foreign students turned around at the beginning of this fiscal year.
It has been increasing since May when the gradual relaxation of immigration restrictions started. As of October 1st, the number of rooms occupied by foreign students was 2,940 rooms, up about 1,000 from the starting number of 1,977. It has recovered to close to pre-pandemic year of 2019. New openings in the dormitory business. We opened 19 dorms with 1,921 rooms in April. We opened Dormy Nakakasai Global House in September to meet the increasing demand of foreign students triggered by the easing of immigration restrictions. We opened 20 dormitories with 1,971 rooms. The Teikyo University International Students Dormitory, Hachioji Otsuka, on the upper left, is our fifth on-campus student dormitory. It was built on the property owned by the university.
We opened Aichi Toho University's Kyushinkan, a dormitory dedicated to the university's baseball club, and Dormy Kyoto Yamashina. We remodeled upper floors of Yamashina branch of Kyoto Bank into a dormitory when the office underwent a makeover. We will continue to push for new openings. We will grasp the needs of our prospective tenants, as well as offering flexible plans to schools and owners. The Dormy Inn business. During the period under review, many customers used our services during the holiday-studded Golden Week and the summer vacation season. We welcomed many customers who came to enjoy a large hot spring bath, fully equipped sauna, as well as our meals featuring local delicacies and Yonaki Soba noodle. The government's tourism promotion measures, including prefectural and regional discounts, also helped greatly.
As a result, RevPAR for existing facilities increased by JPY 4,036 year-on-year, raking in additional revenue of JPY 10.63 billion. Profit also improved by JPY 9.16 billion. We opened a total of five new facilities, four Nono brand facilities, and one roadside type. In response to requests from the national and local governments, we continue to offer some of our facilities as accommodation and recuperation facilities for COVID-19 cases. As a result, total revenue in the Dormy Inn business jumped 84.7% to JPY 27.21 billion. Operating income grew by JPY 8.66 billion to JPY 4.13 billion. The next slide shows monthly occupancy rate and average room rate, which are KPIs in the Dormy Inn business.
For the first time in three years, we were able to start the year with no COVID restrictions on activities. Despite a resurgence in case numbers from late June, we received many customers during Golden Week and summer vacation season, thanks to the government's tourism promotion measures. The occupancy rate recovered to over 85%. The average room rates topped JPY 10,000, although the occupancy rate has not reached the pre-pandemic level and the average room rate has been exceeding the pre-pandemic levels since September. We prepared a chart for RevPAR using the same color for easy comparison. The dotted line shows the average occupancy rate of business hotels nationwide released by the Japan Tourism Agency. The occupancy rate for the Dormy Inn has consistently been above 30 point above the industry average.
We believe that many of our customers, including repeat customers, continue to choose us. As of November 20th, the occupancy rate stood at 88.7%. The average room rate was JPY 12,503. That's up from October. The next chart shows monthly RevPAR, which is the average room rate times the occupancy rate. As you can see, the occupancy rate so far this year has risen year on year. It has recovered to the levels close to pre-pandemic levels since the second quarter. The next slide shows some evaluations and awards that we have received for the Dormy Inn business. On the left is JCSI or Japanese Customer Satisfaction Index. In the middle is ranking of the customer's most favorite business hotels. We deeply appreciate such high recognitions by customers, and that motivates us to do more to serve customers even better.
We will be rated as the most favorite business hotel and maintain that status. On the right is a Dormy Inn Seoul Gangnam in South Korea. It was rewarded the Agoda Customer Review Awards 2022, which honors establishments with the highest quality services. We believe that Korean customers appreciated simulated experiences traveling to Japan when they were unable to travel abroad due to the pandemic. They must have enjoyed the large baths and sauna, as well as a variety of breakfast menus of Japanese, Western, and Korean cuisine, and the Yudofu noodles in facilities filled with traditional Japanese atmosphere. We are constantly striving to improve customer experiences by providing such services. We believe these high evaluations by customers is the fruit of our tireless efforts. We will not rest and continue to improve our products and services. Next, openings of the Dormy Inn.
As you can see, we opened a number of traditional Japanese style premium Nono series, which is also being used by leisure and sightseeing tourists. We opened four facilities with 651 rooms. Onyado Nono Yodoyabashi in Osaka in April, Onyado Nono Sendai in June, Onyado Nono Matsumoto and Matsue in July. In addition, for the first time in five years, we opened a roadside-type facility. Dormy Inn Express Fujisan Gotemba was opened in May. It's been popular with not just business travelers with car access, but also golfers and outlet shoppers and others. It's been operating at high occupancy rates since its opening. We will open Dormy Inn Okayama in November 1st and Dormy Inn Premium Ginza in March next year. Next, the resort business. Like Dormy Inn business, this business is on a recovery track.
RevPAR for the existing facilities jumped to JPY 10,481 year-on-year. That led to an improvement in revenue by JPY 5.87 billion and operating income by JPY 3.55 billion. In addition, we opened two new large-scale facilities, one in Kyoto and the other in Tokyo, where tourism demand is strong. As a result, overall sales in resort business increased 61.1% from the previous year to JPY 19.27 billion. Operating income improved by JPY 1.69 billion to -JPY 1.37 billion despite the cost of new openings and other related expenses. This slide shows monthly occupancy rate and average room rate, the KPIs for the resort business. Like Dormy Inn, we were able to start the current fiscal year without any restrictions.
Both the occupancy rate and the average room rate soared year-on-year due to many guests during Golden Week and summer vacation, despite a resurgence of infections from late June. Although the occupancy rate has not returned to the pre-pandemic level, the average room rate recovered close to the pre-pandemic levels. Since September, they have been consistently above the pre-pandemic levels. The dotted line shows the average occupancy rate of resort hotels nationwide released by the Japan Tourism Agency. Like the Dormy Inn, our resort hotel has been outperforming the national average. As of November 20th, the occupancy rate was 87.5%. The room rate was JPY 46,634. Both have grown from October. This chart shows RevPAR. It has shown a year-on-year growth this period.
Since September, RevPAR has been higher than the pre-pandemic levels seen in 2019. The next slide shows a list of awards we received in the resort business. Yukemuri no Yado Inazumi Onsen and Kotohira Onsen Onyado Shikishimakan on the upper left were on the March issue of Japan Brand Collection 2022's Ryokan & Hotel TOP 100 list for the second straight year. The restaurant Kita no Banya at La Vista Hokkaido Biei has been selected as a hotel that serves the best breakfast in Japan and is a recipient of the Hokkaido Governor's Award for Excellence in Food Hygiene at the 60th Hokkaido Food Sanitation Conference. We've earned such an honor through our day-to-day efforts to keep good hygiene. We will continue to work hard to ensure safety and security of our customers. The opening of new resort hotels.
We opened two hotels with 762 rooms in total. Kyoto Umekoji Kadensho with 180 rooms in June, and La Vista Tokyo Bay with 582 rooms. Furthermore, we opened the Nasu Shiobara Shionoyu Hot Spring Rengetsu with 89 rooms in October. On November 3rd, we pre-opened Jozankei YURAKU-SOAN with 102 rooms in Hokkaido. Next February, La Vista Hakodate Bay Annex 74 rooms is scheduled to open. This year, we plan to open more than 1,000 rooms in the resort business, something that we haven't done before. The next slide also shows new openings, this time in other businesses. Senior life is a business that we've been nurturing. We opened two new facilities with a total of 103 rooms for this business.
Dormy Iwatsuki Levi II with 50 rooms in June, Dormy Tsukishima Ekimae with 53 rooms in September. In the foods business, we opened the La Vista Tokyo Bay Toyosu Store and the CAFE OASIS La Vista Tokyo Bay Toyosu Store in April, adjacent to La Vista Tokyo Bay. In August, we opened three restaurants in Akasaka, Tokyo: Ryotei SATO, Toki no Niwa Akasaka, and Koryori Koyuki. All of them serve delicious foods and drinks, I hope you'll have a chance to visit. Next, balance sheet and net debt/equity ratio or D/E ratio. Total assets as of the end of September stood at JPY 233.5 billion. That's down JPY 8.2 billion year-over-year due to a decrease in cash and deposits and liabilities. The net equity ratio increased by two points from the end of last year to 31.2%.
This is due to an increase in net assets resulting from more retained earnings and less debts. Net interest-bearing liability, it decreased by JPY 18.7 billion year-on-year to JPY 104.1 billion. Net D/E ratio was 1.43x . In order to conduct proper financial management, we will strive to achieve our target net D/E ratio 1 or less that we set before the pandemic. We will work to improve our business performance promptly and put the interest-bearing debts under control. Lastly, I will touch upon our share price and dividends. Our stock price closed at JPY 5,620 on November 21st. It had risen JPY 905 or 19% from JPY 4,715, the price when we held the last briefing in this room six months ago.
The share price has markedly improved from the low of JPY 1,919 and hit highest on October 18th since it was listed. The recent trend must be exciting investors. Dividends. We make decision on dividends based on the principle of performance linked shareholder returns and of rewarding shareholders stable and steady returns in the long run. We plan to pay the year-end dividend of JPY 10 this fiscal year. The annual dividend, including the interim dividend, will be JPY 20, the same as the previous year. The payout ratio is expected to be 27.9% this year. Please look at the lower right on this slide for the updated credit rating information. This concludes my presentation of the latest financial results. Next, President Nakamura will explain about full year earnings forecast and the formulation of policy of a new medium-term management plan.
Thank you very much for your kind attention.
Hello, I'm Koji Nakamura. Thanks again for coming today. I will cover our full year forecast for this fiscal year and mid to long-term market outlook for our core segments of the student dormitory business and the hotel business. Based on that, I will also talk about our policy for formulating a new midterm management plan currently under development. First of all, we have revised our forecast for the second half and subsequently full year forecast. We've made the revision after having achieved this year's target of JPY 3 billion in operating income by the second quarter. First, we lowered the net sales forecast by about JPY 4 billion, mainly due to a decrease in the project in the development business. We revised operating income forecast upward by about JPY 2.5 billion.
This is due to our anticipation that the average room rate will rise faster than we had anticipated, particularly in the Dormy Inn business. Revised numbers are therefore JPY 170 billion for net sales and JPY 5.5 billion for operating income. Last fiscal year, our earnings structures was somewhat skewed toward the profit from the real estate leaseback as a measure to mitigate the impact of the pandemic. This year we have corrected it so that to show the true picture of recovery of our operating businesses. Please look at the right part of the table, the figures in the blue box. When we adjust one-time factors such as leaseback of real estate, new openings, and large-scale renovation work, net sales increases by JPY 25.9 billion and operating income gains by JPY 16 billion.
You may take these numbers as real levels of recovery for this year. We earmarked JPY 16.4 billion for capital investment to ensure sustainable growth. We plan to pay a dividend of JPY 20 per share, the same as the previous year, the 43rd period, based on our policy of long-term and stable shareholder returns. Next, net sales and operating income by segments in comparison with the three indicators, namely for the fiscal year ended March 2019, that is pre-pandemic, the previous fiscal year ended March 2022, and the previously announced forecast.
As you can see in the dormitory business and hotel business, the biggest profit improvement in the current fiscal year came from the recovery of the hotel business in the previous fiscal year, and in particular, the recovery and increase in the unit price of rooms at Dormy Inn was so remarkable that we added JPY 2.7 billion to the initial forecast and revised the full year forecast profit to JPY 3.3 billion.
As you can see, the Dormy Inn business has quickened its pace of recovery to 95% of the pre-COVID-19 level for the fiscal year ending March 2019. The details of the factors will be explained on the following page. As for other businesses, first, in the comprehensive building management business, we expect an increase in income due to a recovery in cleaning services in line with the recovery in hotel occupancy rates and an increase in large-scale renovation work. We have revised our forecast because some of the construction orders included in the previous forecast have been postponed. As for the food service business, we have also factored in an improvement in profits due to a recovery in hotel restaurant operations and normal operations at food service outlets.
In the development business, a gain of JPY 8.2 billion from the real estate requisition business in the previous fiscal year was recorded as a measure against COVID-19. In the current fiscal year, we'll see a rebound effect as the company returns to its normal business structure, focusing on management and operation business. Next, I would like to explain how we expect operating income in each of our major segments to change from quarter to quarter. In the previous fiscal year, the third quarter was the only period in which there were no measures to control human flow related to measures taken to prevent the spread of COVID-19. I would like to show you the forecast for the current fiscal year in comparison.
First, in the dormitory business, the occupancy rate and the number of contracts at the beginning of the period increased year-over-year, together with an increase in the number of foreign students during the period, partially offsetting the impact of increased utility costs. Operating income was slightly negative in the first and second quarters as a result. Beginning in the third quarter, we expect an increase in new foreign student contracts during the year, and in the fourth quarter, an increase in capacity with the newly opened rooms and recovery in the occupancy rate at the beginning of the next fiscal year due to the normalization of contracts with foreign students, leading to an increase in room income due to an increase in the number of contracted rooms, resulting in an increase in operating income year-over-year.
The reason for the revision is that although the number of contracts for foreign students will recover and increase significantly from the third quarter, it will fall slightly short of the initial plan. In the hotel business, both Dormy Inn and Resorts experienced a significant decline in both business and leisure travel demand in the previous fiscal year due to the declaration of the state of emergency in the first and second quarters and priority measures to prevent the spread of the disease in the fourth quarter. However, we have factored in a 90% recovery in RevPAR for the current fiscal year based on the assumption of a gradual recovery throughout the year. As a result, we expect a full year profit recovery of JPY 12.8 billion.
In the sales and leaseback of real estate business, as explained earlier, there will be a JPY 8.2 billion decrease from the previous year. The factors behind the variance from the previous year in other businesses are the opening cost of our new facilities in the senior life business, the cost of provision for bonuses to account for the recovery in profitability, and consolidation cancellation. A breakdown of the quarterly changes in the hotel business profit forecast for the existing, newly opened, and large-scale renewal hotels. As you can see, we are projecting a total of JPY 12.8 billion improvement in profits, JPY 10.7 billion in the Dormy Inn business and JPY 2 billion in the Resorts business.
If we look only at the existing hotels, we are projecting a total of JPY 17.2 billion improvement, JPY 11.8 billion in the Dormy Inn business and JPY 5.4 billion in the Resorts business. We plan to steadily restore the absolute amount of operating income and profit margin to the pre-COVID level.
This slide shows the quarterly trends in KPI for Dormy Inn, and for the third quarter of the current fiscal year, we have set the RevPAR target at JPY 10,300, the same level as the third quarter of the fiscal year ending March 2019, that is pre-COVID, based on the preliminary results for the current October and future bookings from November onward, due to the favorable effects of lifting of a ban on individual foreign tourists entering Japan and the national travel support measures. On the other hand, we have conservatively left the KPI, which was the basis for the previous forecast unchanged for the fourth quarter due to concerns about the current increase in the number of new COVID cases and a rebound in tourism demand after the National Travel Support Program to end on December 20, 2022.
For the calculation of the revised forecast, we have set profit targets based on the occupancy rate and unit price, which are set reflecting the outlook of the business environment, including market and competitive trends, and RevPAR, which is calculated by multiplying these figures by net sales and by each cost and SG&A expense. In terms of practical management, we will further break down this index to a monthly basis for each hotel and use it as a benchmark to manage performance during the period and take agile measures. This slide shows the quarterly trends in KPI of the resorts business. As with Dormy Inn, we have set a RevPAR target of JPY 3,700 and JPY 500 for the third quarter, about 6% above the pre-COVID-19 third quarter of fiscal year 2019, reflecting current preliminary sales and future bookings.
On the other hand, due to concerns about the current increase in COVID-19 cases and a rebound after the end of the National Travel Discount Program, as with Dormy Inn, we have conservatively left the forecast at the same level for the fourth quarter, which is the basis of the previous announced figures. Performance management during the period is the same as for Dormy Inn. This table lists new dormitories and hotels by opening period. The facilities marked with L on the left indicate development projects based on the company's business model of leased property, while others are direct capital investment projects based on the acquisition of ownership or leasehold interest in land and buildings. We plan to shift our capital investment projects to a method in which we focus on long-term management and operation as the lessee and operator through the securitization of real estate at the appropriate time.
The underlying projects are those that can be securitized after the current fiscal year, but we have not incorporated them into the plan for the current fiscal year. Regarding the pace of openings, unfortunately, due to the impact of COVID over the past two years, we have been working with building owners to adjust the timing of openings. With the resumption of openings will be concentrated in the current period. In the dormitory business, we will maintain a steady pace of new openings, but in the hotel business, since we were restrained in purchasing facilities information during COVID, the pace of new openings will slow down for the time being. We will steadily resume investment in projects that will contribute to future regrowth while carefully monitoring the current situation.
As part of this strategy, we have specified the Nono and Roadside types of Dormy Inn to be expanded in addition to the existing types that we are focusing on. We plan to begin work on the proposed opening plan for the fiscal year ending March 31st, 2024, and the fiscal year ending March 31st, 2025, as shown in the table. The opening plans for the fiscal year ending March 31st, 2026 and beyond will be explained in the new medium-term management plan to be announced. I would like to explain our sustainability initiatives. The Sustainability Promotion Committee is responsible for the formulation, discussion, and decision-making of basic sustainability policies, materiality, related policies, specific measures, and their disclosure with the aim of enhancing corporate value over the long term and for managing and controlling sustainability promotion efforts.
An administrative office consisting of members from a wide range of departments within the company has been established as a subordinate organization of the Sustainability Promotion Committee to promote sustainability initiatives on a company-wide basis. We plan to disclose our basic policy on sustainability and materiality on our website in the near future. I hope you will take a look. Please also refer to the specific initiatives as described on this slide. This slide is a publicity release that shows that we are steadily implementing concrete measures in a wide range of business fields, such as plastics-free of hotel amenities. Just the other day, a prominent ESG investor from the Netherlands visited our company and stressed that our student dormitories, senior housing, and hotel business itself are investment targets because they fall under the keywords of healthy and happy people.
I was reminded of my sense of responsibility for the fact that our business domain is in demand in today's modern society. In line with the corporate slogan of A Great Morning announced in December 2017, we will continue to tackle various issues as a company with sustainable growth that is indispensable to society, living up to our name as a Prime Market Company. That concludes my explanation of our earnings forecast for the fiscal year ending March 31, 2023. I would like to continue with an explanation of the future medium to long-term market outlook and the policy for formulating a new medium-term management plan.
In this part, I would like to explain our new five-year midterm plan starting next fiscal year, which is currently being drafted and formulated, as well as the market outlook for our main business segments, student dormitories and hotels, and our policy for formulating the plan. Regarding the student dormitory business, on the left are the number of students and our market share over the next 10 years based on publicly available information from the Ministry of Education, Culture, Sports, Science and Technology and other organizations. As you can see, the number of students living in dormitories nationwide, shown in red, is expected to gradually decline in line with a decrease in the population of eighteen-year-olds, shown in orange. We intend to increase the number of contracted rooms by increasing our market share with approximately 1,300 school corporations nationwide with which we already have partnership.
Two, by developing in areas where national universities are located and lacking in dormitories. Three, expanding our partnerships with school corporations with which we do not yet have partnerships in order to expand our business by increasing our market share in the Japanese student market where the birth rate is declining. Continuing on the right is a graph of foreign students. The blue line shows the number of foreign students nationwide. The light blue line shows our share of foreign students, and the bar graph shows the number of foreign students we cater for. As shown in the graph, the number of foreign students decreased due to COVID, but is expected to recover to the pre-COVID level within the next few years and is expected to continue to increase thereafter.
We expect our share of the market to increase from 0.8% to 1.4%. We are confident that we will be able to continue to expand this business in increasing our share of both Japanese and foreign students. I will now continue with the explanation of the market environment in our hotel business. I would like to update you on the medium-term outlook for the hotel business, which has been hit hardest by COVID-19. This slide is the outlook for Japan's hotel accommodations market based on a survey conducted by a major research organization. The graph on the left shows the number of domestic guests, and the graph on the right shows the number of inbound guests, in other words, the recovery scenario of inbound demand.
The scenario for the number of domestic guests on the left presents two possible scenarios incorporating the recovery story from COVID and the negative impact on business travel demand, such as remote meetings. Both scenarios assume that the recovery will begin in 2021 and return to the pre-COVID level of 2019 by 2023 under the up scenario, and by 2025 at the latest under the base scenario. Two scenarios for inbound demand are presented on the right, incorporating various conditions for entry into the country and the impact of air passenger volume on inbound demand. Both scenarios assume a recovery starting in 2022, returning to pre-COVID levels in 2019 under the up scenario in 2025, and 2026 under the base scenario. On the formulation policy on the new medium-term management plan in comparison with the previous plan.
This time, we envision a five-year medium-term plan starting next fiscal year and thereafter. We would like to release plans in a rolling manner, looking forward every year to the next five years. We are targeting an announcement preferably in May of next year, provided that there is a consensus in the market about the impact of the policy of restraining human flow caused by COVID and the situation of cost inflation caused by Russia and Ukraine issue, they have subsided. The theme of this year's announcement is from recovery to regrowth, we feel that our message is expected to answer the following questions. How quickly can we recover to the JPY 15 billion level of operating income before COVID and reach the JPY 19 billion level targeted in the previous medium-term plan? How can we present the story of our next regrowth?
We are strongly aware a message from us on this question is highly anticipated, as shown by our current stock price. This time, we plan to achieve profit growth by combining the advantages of scale through external growth and internal growth by making full use of digital transformation based on the premise of improving the reputation of our products and services. The business portfolio envisioned in the current medium-term management plan is to position the hotel business as a growth driver based on the dormitory business, which has a stable earnings base and is one of the company's strengths, as in the past. We expect both dormitory and hotel businesses, which were expanded during the previous medium-term management plan period, will benefit from economies of scale as the market recovers.
In addition, expanding our dormitory business to national universities across Japan, and as we have succeeded with Dormy Inn Gotemba, in developing the Nono-type and Roadside-type in the Dormy Inn business, which is something new. We will start to develop diversification of our target customers and expansion of our service area as part of our growth strategy in the domestic market. Specific quantitative targets are left blank as of now, but we are currently examining them closely. As for the top line, which is a factor for profit growth, in the dormitory business where demand from international student is recovering, we will strive for quantitative expansion by adding locations of national universities in Japan to the existing market clusters in metropolitan areas where our head office and our branches are located.
At the same time, we will work to optimize the room unit price, which has remained flat in response to the expected cost inflation. In the hotel business, Dormy Inn developed a fairly large business facility during the previous medium-term management plan period. We expect a recovery in the inbound areas of Osaka, Kyoto, and the Tokyo metropolitan area, which originally had a high inbound share and will capture the increase in inbound share and the accompanying increase in RevPAR due to these characteristics. According to information from Booking.com and other major overseas online travel companies, the pace of inbound bookings since October, when the ban was lifted, has been 1.3 times the pre-COVID level of over 30 million annual visitors. Depending on the recovery rate of international airline flights, a recovery that exceeds expectations can be expected.
We have received reports that the occupancy rate of our Dormy Inn in Osaka has risen to 90% and the inbound ratio to less than 50% due to inbound travel. Not only this, we will pursue economies of scale by diversifying our target customers and embarking on expansion by opening Nono-type hotels in urban areas to capture leisure demand and Roadside-type hotels, which have been successfully opened in Gotemba. Meanwhile, in the resorts business, the facilities developed ahead of time are entering a period of sales growth as the market recovers.
We will enter a period of revenue growth as we reap the benefits of recovery in inbound tourism, as well as its off-period bottom-up from our new corporate membership program, the Shiki Club. In terms of costs, we will curb the total amount of labor cost increase per person to acquire human resources through digital transformation. We will also take measures to control and rationalize the ratio of commission fee by expanding the company's website to be DX compatible and diversifying contracts and exit schemes to reduce fixed costs as construction costs remain high. We will continue to take all possible measures. In particular, we position the optimization of the ratio of commission fee through the coexistence and co-prosperity of domestic and overseas online travel sites and our own reservation site as a key measure for internal growth.
As for development investment and fund procurement, in the previous medium-term management plan, we regarded the period as a period of demand expansion, especially in the hotel business, and accelerated the pace of investment in new business locations, planning and generally executing development investment totaling approximately JPY 140 billion for the five-year period. During this period, in terms of financing, we were able to carry out our financial operations without breaking our financial discipline before COVID-19, thanks to a comprehensive alliance agreement with Sumitomo Mitsui Finance and Leasing through a bridge lease. This time, we do not intend to achieve profit growth by focusing solely on external growth through prior development of new facilities, but rather to achieve comprehensive profit growth through a combination of internal growth measures, such as increasing RevPAR and optimizing the ratio of commission fees as well as taking on renovation projects.
We are currently in the process of conducting a thorough simulation to determine the balance between development investment and fund procurement that will allow us to achieve our projected profit growth. The items that we are focusing on in this new medium-term management plan will be explained. Our business is a real estate management and operation service business, which is labor-intensive in nature, and the total number of employees in our group is over 6,000 or 18,000 when part-time staff are included. As competition for human resources grows more intense, we are working on specific recruitment, training, and compensation improvements with the awareness that raising ES orientation and employee satisfaction will directly lead to CS orientation and customer satisfaction. Digital transformation strategy in this process will play a key role.
We will also set specific areas where digital transformation utilization in various aspects of sales and administration will directly lead to improved profitability through enhanced productivity and realize them with a sense of speed. We will also increase the level of our ESG initiatives and take on the challenges of overseas markets, which are growing markets, with a strong will to take double, triple the payback of the past two years we were forced to manage in a defensive manner due to the pandemic. I would like to ask for your continued support and guidance. Thank you very much for your kind attention today.