#Japan #Tokyo #hospitality #Nowhere Group #INVESTEL

Understanding the New Service: INVESTEL Score

Nowhere Group, based in Nakano, Tokyo, has recently launched a groundbreaking service specifically designed for the hospitality sector. This new offering, known as INVESTEL Score, aims to provide hotels, inns, and vacation rentals with a comprehensive assessment of their operational health. By analyzing various crucial factors, the service acts as a diagnostic tool, similar to a health check-up for business operations.

The Rationale Behind the Service

The hospitality industry has faced numerous challenges in recent years, including fluctuating inbound tourism, rising costs of raw materials, and labor shortages. Many business owners find themselves in a state of uncertainty, questioning whether their financial metrics truly reflect a healthy operation. While they monitor revenue and occupancy rates, the bigger picture often eludes them.

Questions arise: Is it wise to continue trusting current management? Are there issues that need addressing? And if selling the property is an option, is now the right time? To address these confounding doubts, INVESTEL Score has been developed as a starting point for owners seeking clarity and insight into their operations.

The Mechanics of INVESTEL Score

The service evaluates the health of a hospitality business not just by binary indicators like profit or loss, but through six distinct perspectives:
1. Business Value: Evaluating revenue potential and operational value.
2. Profitability: Analyzing sales, profit margins, and occupancy rates.
3. Investment Efficiency: Assessing ROI and payback periods from an investment standpoint.
4. Operational Efficiency: Focusing on cost structures and productivity.
5. Safety: Reviewing profit resilience and fixed cost ratios.
6. Market & Growth Potential: Considering tourism demand and supply conditions in the area.

The output of this assessment is a score ranging from S to D, allowing owners to readily grasp strengths, bottlenecks, and areas for improvement.

Service’s Purpose

INVESTEL Score is not a valuation tool for immediate sales or M&A decisions. Instead, it serves as a guide, providing critical insights that help owners deliberate over their next steps. The focus is on expanding future options, assessing whether it's time to sell or improve the property for increased value.

If owners seek further assistance post-diagnosis, INVESTEL also offers free, individual consultations for a more detailed analysis or guidance.

How Does INVESTEL Stand Out?

With a track record of over 67 billion yen in handled hospitality properties, more than 300 listings, and over 500 revenue simulations, INVESTEL has deep insights into what affects profitability and decision-making within this sector. The vital realization has emerged: while many owners collect data, they often lack the framework to interpret it effectively and decide on the best course of action regarding their property.

INVESTEL Score is positioned as a foundational tool for:

• - Encouraging owners to take an objective view of their business.
• - Enhancing decision-making quality across the industry.
• - Creating a robust data asset for future improvements and M&A decisions.

Conclusion

INVESTEL Group's commitment to transforming the hospitality industry is unwavering. By developing services like the INVESTEL Score, they aim to move away from traditional reliance on intuition and experience, paving the way for a more sustainable and transparent industry. As the service progresses, continuous updates and enhancements will ensure it remains relevant to the evolving needs of hospitality owners. Owners can access the service now at INVESTEL.