The Kyoto Hotel (TSE:9723) Interest Coverage: 2.00 (As of Mar. 2026) — 55% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
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Director of Data and Quant Analytics at GuruFocus
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Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

TSE:9723 The Kyoto Hotel Ltd TSE:9723
69 GF Score
Price 円634.00
GF Value 円803.90
Valuation Modestly Undervalued
! 6 Warning Signs
View Full Analysis

What is The Kyoto Hotel Interest Coverage?

The Kyoto Hotel TSE:9723 -0.47% 69 Interest Coverage is 2.00 as of Mar. 2026, which is 55% below its 10-year median of 4.41. GuruFocus rates TSE:9723 with a GF Score™ of 69/100 and a GF Value™ of 円803.90 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 617 Travel & Leisure companies, The Kyoto Hotel ranks worse than 51.7% on this metric.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. The Kyoto Hotel's Operating Income for the three months ended in Mar. 2026 was 円110 Mil. The Kyoto Hotel's Interest Expense for the three months ended in Mar. 2026 was 円-55 Mil. The Kyoto Hotel's interest coverage for the quarter that ended in Mar. 2026 was 2.00. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. The Kyoto Hotel Ltd interest coverage is 4.86, which is low.

The historical rank and industry rank for The Kyoto Hotel's Interest Coverage or its related term are showing as below:

TSE:9723' s Interest Coverage Range Over the Past 10 Years
Min: 0.48   Med: 4.41   Max: 5.94
Current: 4.86


TSE:9723's Interest Coverage is ranked worse than
51.7% of 617 companies
in the Travel & Leisure industry
Industry Median: 5.22 vs TSE:9723: 4.86

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


The Kyoto Hotel  (TSE:9723) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


The Kyoto Hotel Interest Coverage Related Terms


The Kyoto Hotel Interest Coverage Historical Data

* Premium members only.

The historical data trend for The Kyoto Hotel's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

The Kyoto Hotel Interest Coverage Chart

The Kyoto Hotel Annual Data
Trend Dec17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 0.00 5.94 5.57 5.39

The Kyoto Hotel Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Sep24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.40 0.00 13.53 2.00 5.89

TSE:9723 vs MAR, HLT, H: Interest Coverage Comparison

For the Lodging subindustry, The Kyoto Hotel's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


The Kyoto Hotel Interest Coverage vs Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, The Kyoto Hotel's Interest Coverage distribution charts can be found below:

* The bar in red indicates where The Kyoto Hotel's Interest Coverage falls into.


TSE:9723
69GF Score
The Kyoto Hotel Ltd TSE:9723
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

The Kyoto Hotel Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

The Kyoto Hotel's Interest Coverage for the fiscal year that ended in Mar. 2026 is calculated as

Here, for the fiscal year that ended in Mar. 2026, The Kyoto Hotel's Interest Expense was 円-206 Mil. Its Operating Income was 円1,109 Mil. And its Long-Term Debt & Capital Lease Obligation was 円11,220 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2026 )/Interest Expense (A: Mar. 2026 )
=-1*1108.669/-205.585
=5.39

The Kyoto Hotel's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, The Kyoto Hotel's Interest Expense was 円-55 Mil. Its Operating Income was 円110 Mil. And its Long-Term Debt & Capital Lease Obligation was 円11,220 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*109.581/-54.873
=2.00

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 2.00 mean?
The Kyoto Hotel (TSE:9723) has a Interest Coverage of 2.00 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on The Kyoto Hotel and its competitors. This is 55% below median its historical median of 4.41. Over the past decade, The Kyoto Hotel's Interest Coverage has ranged from 0.48 to 5.94. According to the industry distribution chart, The Kyoto Hotel ranks #319 out of 617 companies in the Travel & Leisure industry, placing it in the top 51.7%.
Is The Kyoto Hotel's Interest Coverage too high?
The Kyoto Hotel's current Interest Coverage of 2.00 is 55% below median its 10-year median of 4.41. Over the past 10 years, this metric has ranged from a low of 0.48 to a high of 5.94. The Travel & Leisure industry median Interest Coverage is 5.22. The Kyoto Hotel's value of 2.00 is 61.7% below this industry median. Based on the distribution chart, The Kyoto Hotel ranks #319 out of 617 companies in the Travel & Leisure industry, which is below the industry midpoint. Overall, The Kyoto Hotel has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Kyoto Hotel's Interest Coverage compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, The Kyoto Hotel ranks #319 out of 617 companies for Interest Coverage. This places The Kyoto Hotel in the lower half of its industry. The industry median Interest Coverage is 5.22. The Kyoto Hotel's value of 2.00 is 61.7% below this benchmark. Historically, The Kyoto Hotel's own Interest Coverage has ranged from 0.48 to 5.94 over the past decade. While the company's 10-year median is 4.41 vs. the industry median of 5.22, The Kyoto Hotel has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Travel & Leisure company?
The median Interest Coverage among Travel & Leisure companies is 5.22, based on 617 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Kyoto Hotel's current Interest Coverage of 2.00 is 61.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on The Kyoto Hotel and its competitors. For the Travel & Leisure industry, the median Interest Coverage is 5.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Kyoto Hotel's current Interest Coverage is 2.00, which is 55% below median its own 10-year median of 4.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Kyoto Hotel stock overvalued right now?
Based on GuruFocus' analysis, The Kyoto Hotel (TSE:9723) is currently considered Modestly Undervalued. The stock's GF Value™ is 円803.90, compared to a current price of 円634.00 — trading 21.1% below its estimated fair value. The current Interest Coverage is 2.00, which is 55% below median its 10-year median of 4.41 and 61.7% below the Travel & Leisure industry median of 5.22. The Kyoto Hotel's overall GF Score™ is 69/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For The Kyoto Hotel (TSE:9723), the current Interest Coverage is 2.00 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is The Kyoto Hotel (TSE:9723) Overvalued in 2026?

Based on GuruFocus' analysis, The Kyoto Hotel stock appears to be undervalued. The current stock price of 円634.00 is trading 21.1% below its estimated GF Value™ of 円803.90. GuruFocus considers The Kyoto Hotel to be Modestly Undervalued.

Key valuation signals for TSE:9723:

  • Interest Coverage: 2.00 (55% below median its 10-year median of 4.41)
  • GF Value™: 円803.90 vs. price of 円634.00 (21.1% below fair value)
  • GF Score™: 69/100 with 6 warning signs
  • Industry Position: 61.7% below the Travel & Leisure median (#319 of 617)

No single metric tells the full story. See the TSE:9723 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


The Kyoto Hotel Business Description

Address 537-4, Ichinofunairi-cho, Nijo minami-iru, Kawaramachi-dori, Nakagyo-ku, Kyoto, JPN, 604-8558
The Kyoto Hotel Ltd operates hotels & banquet halls in Japan. The Company manages restaurants & bars under the names of Kyoto Hotel Okura and Karasuma Kyoto Hotel. It operates in four divisions: accommodation, banquet, restaurant & others division. It also has the online shop.
69GF Score

Get the complete analysis for TSE:9723

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円634.00
Price
円803.90
GF Value