Fumiko Motoya Seizing Opportunities in Tough Times | FRIDAY DIGITAL

Fumiko Motoya Seizing Opportunities in Tough Times

Wisdom and spirit" of the "famous president" who built one of the largest hotel chains in Japan in her lifetime.

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Former President Motoya holding a calligraphy work he personally wrote. The words written on the colored paper are one of the APA-style mottos by Mr. Toshio Motoya, the Chairman of the APA Group.

50 years since the founding of the group, and it has never posted a loss

In the corner of the CEO’s office, decorated with auspicious items such as a calligraphy written by Sota Fujii, the seven-time champion (22), and a painting of former sumo grand champion Kisenosato (38), the powerful female CEO of the hotel chain boasting the largest number of guest rooms in Japan began speaking in a forceful tone.

“I’ve been so busy lately that I didn’t even have time to think about our 40th anniversary celebration. I even forgot my 77th birthday last year. Oh well.”

Founded 50 years ago, APA Hotels has grown into a leading hotel chain in Japan under the leadership of President Fumiko Motoya. Known for her flashy fashion that evokes the image of medieval nobility or royal families, she has actively appeared in media and commercials to increase the hotel’s visibility. President Motoya describes herself as a publicity figure.

Even during the pandemic, APA continued to expand actively, and its network now boasts over 128,000 rooms. For the fiscal year ending November 2024, the hotel achieved a record sales figure of 220 billion yen and an operating profit of 70 billion yen—remarkable figures for a hotel business. What is even more astonishing is that for over 50 years since the company’s founding, it has never posted a loss.

“By managing, operating, and strategizing the brand in-house, we have been able to maintain a high profit margin of over 30%. Thanks to this, we have even ranked 19th in global hotel rankings, including high-end foreign brands.”

APA’s first hotel opened in Kanazawa in 1984, making it a latecomer in the hotel industry. So how did the company achieve such rapid growth?

“In a word, it’s originality. We couldn’t win by imitating other hotels, so we looked to other industries for inspiration. One industry we particularly focused on was aviation. We introduced a membership card with a cash back feature, inspired by the airline industry. I learned that airlines prefer to increase occupancy by lowering prices rather than flying planes with empty seats, so we adopted a variable pricing system and invested in developing a pricing analysis system.”

The Bold Decision during the COVID-19 Pandemic

APA has also invested large sums of money to create cutting-edge services one after another. In 2017, they were ahead of others in launching their official app. They introduced a system where bookings could be made directly, without going through external hotel reservation sites.

“The ‘1-second check-in/check-out’ system, where all you have to do is scan the QR code displayed on the app, has contributed to streamlining operations. However, what we prioritize first is how can we make our customers happy? Luxury hotels offer great service, but there are long lines at check-in counters. What we focused on for customers in a hurry was the 1-second check-in.”

Although the hotel industry is currently thriving due to inbound demand, looking back over the past 40 years, there have been many major crises such as the collapse of the bubble economy and the Lehman Brothers shock. Naturally, APA also faced headwinds, but each time, they successfully overcame them. Among these, APA’s actions during the COVID-19 pandemic left a strong impression on many people.

“In 2020, when COVID-19 infections were confirmed in Japan, some hotels reduced their operations. However, APA continued operating under the ‘Don’t lose to COVID’ campaign. We quickly started accepting mild or asymptomatic patients as accommodation facilities. It all started when a direct contact came from government officials to my husband, the group chairman, Mr. Koshio Motoya, asking, ‘Can you do something about this?’ Although we were anxious about the unknown infection, we decided, ‘To become a leading company, if no one else is doing it, we’ll do it ourselves.'”

Such management decisions have helped boost APA’s brand power, but it is also true that they carried significant risks. Despite being a large group, why is APA able to make quick and bold management decisions?

“The reason is simple. We have maintained our family-owned, non-listed company structure since our founding. All the shares are held by myself, my husband, and our two children. That’s why we can make immediate decisions. Banks have recommended that we go public, but we have absolutely no intention of doing so. If we went public, we might be able to raise operating funds from the market, but I don’t like the idea of being forced to manage while worrying about shareholders’ opinions and quarterly reports. For customer-first management, I believe our current style is the best.”

Behind APA’s bold management decisions is another strength: the ability to accurately read the trends of the times.

Before the bubble economy, we moved our headquarters from Tokyo back to our place of origin in Kanazawa, minimizing the impact of the real estate price collapse. During the Lehman Brothers shock, we purchased discounted land in the city center one after another. The number of hotels in Tokyo rapidly increased. With her strong business sense, President Motoya shared her views on Japan’s future economy.

“I’m not good at tough topics,” she said with hesitation, but continued:

“From an exchange rate perspective, even though the yen may appreciate slightly due to the narrowing of the interest rate gap between Japan and the U.S., I expect it to stay above 140 yen. I foresee a continued yen depreciation trend. This will likely continue to boost the number of inbound tourists to Japan. Industries that are less able to benefit from the yen’s depreciation, such as those dependent on exports, may be negatively affected, but I believe Japan’s overall economy will improve. With real wages beginning to rise, a positive cycle of prices and wages will emerge, and stock prices are likely to rise, supported by the yen’s depreciation. Although there are risk factors like the birth of the Trump administration, since the 2008 Lehman shock, the stock market has continued to rise in the long term. The stock prices that crashed during the COVID-19 crisis in 2020 bounced back within a year.

The fact that stock prices are expected to rise means that economic sentiment should also improve. The Bank of Japan expects consumer prices to rise by about 2%. If that happens, not only will inbound tourism continue, but the travel desire of people living in Japan will also rise. The hotel industry will continue to benefit from favorable winds.”

 

The road map is in sight

In March 2024, the negative interest rate policy was lifted for the first time in 8 years. The hotel business incurs significant costs in new openings, so rising interest rates can work against it, but President Motoya is unfazed.

“As you mentioned, some companies will hold back on investments due to increased interest payments. APA also has borrowings of about 300 billion yen, but its assets amount to 1.3 trillion yen. In other words, we hardly need to take on debt. In fact, small hotels are being built with our own funds. The debt we have is mostly for maintaining relationships with the banks.”

“Initially, when we started APA Hotels, the borrowing interest rate exceeded 10%. When you think about that, the current 2-3% interest rate feels almost like nothing. In fact, the more competitors hold back from opening new hotels because of interest rates, the more it works in our favor. When everyone is hesitating, that’s when it’s time to be brave.”

President Motoya speaks with strength, and she clearly sees the path toward becoming an industry leader after overcoming competition from foreign hotels.

“With the increase in inbound tourism, competition in the hotel industry is intensifying. However, APA Hotel’s share in the national resort, city, and business hotel categories is only 10%. We won’t be considered an oligopoly until we reach 20% share. We will continue expanding.”

“We will also expand more aggressively overseas. We’ve acquired Coast Hotels, a regional chain based in Vancouver, Canada, and in Seattle, USA, we purchased a hotel that was previously operated under the Hilton brand and reopened it as Coast Hotels by APA.”

In addition to her role as president, since 2015, President Motoya has been active as a singer, driven by her desire to do anything that can help advertise. What is the driving force behind her actions?

“It might sound like a cliché, but my desire is to be helpful to society. That’s the most important thing. We continue to come up with good ideas and take care of our customers for that reason. We believe that companies which can create demand, create employment, and generate reasonable profit to fulfill tax obligations are highly contributive to society. In fact, we have paid over 200 billion yen in taxes and contributed to the country.”

“Going forward, the tourism industry will become one of the few industries that will support Japan alongside advanced science and medical technologies. We are literally carrying the country. Isn’t it a blessing to be involved in such an industry? I want the over 30 million visitors to Japan every year to learn about the beauty and hospitality of Japan. I will keep working hard until my last breath.”

After saying this, President Motoya apologized, stating, “I have a real estate contract meeting, so I have to leave,” and left the president’s office, leaving the reporters behind. The energetic and challenging attitude of this leader will not change in the future.

President Motoya’s Profile
Born in Fukui Prefecture. After graduating from Fukui Prefectural Fujishima High School, she joined Fukui Shinkin Bank. In 1971, she became a director at Shinkin Development Co., Ltd. (now APA Co., Ltd.), founded by her husband, Mr. Sotoshio Motoya. She has been in her current position since 1994, and as an “advertising figure,” she grew APA Hotels into a nationwide chain.

A family photo taken in 1972, shortly after the group’s founding. Pictured with her husband, Mr. Sotoshio Motoya (on the right), is their son, Mr. Kazushi Motoya, the current CEO of the APA Group.
The Osaka Namba Station Front Tower, which opened in December 2024, boasts 40 floors and 2,055 rooms, making it one of the largest hotels in Western Japan.
The Osaka Namba Ekimae Tower, which opened in December 2012, boasts 40 floors and 2,055 rooms, making it one of the largest hotels in western Japan.
Unpublished cut: An honest interview with APA Hotels’ President, Mrs. Motoya Fumiko.
Unpublished cut: An honest interview with APA Hotels’ President, Mrs. Motoya Fumiko.

From the January 24/31, 2025 issue of “FRIDAY”

  • Interview and text Satoru Hirahara PHOTO Hiroyuki Komatsu (1st and 2nd photos)

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