Make The World
More Sustainable[Provisional Translation Only]
This English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

July 21, 2022
IssuerIchigo Hotel REIT Investment Corporation (“Ichigo Hotel,” 3463)
1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Osamu Miyashita, Executive Director
www.ichigo-hotel.co.jp/en
Asset Management Company
Ichigo Investment Advisors Co., Ltd.
Representative: Hiroshi Iwai, President
Inquiries: Hidehito Iwasaka, Head of Ichigo Hotel
Tel: +81-3-3502-4892
Earnings Forecast Revision for the July 2022 Fiscal Period
Ichigo Hotel is revising upward its July 2022 fiscal period earnings forecast announced
in the March 17, 2022 release “January 2022 Fiscal Period Earnings.”
1. July 2022 Earnings Forecast Revision(JPY million)

Previous Forecast(A)
New Forecast(B)
Difference(B) - (A)% Change
Reference:
July 2021 ActualNet
IncomeDividendper Share(JPY)

Operating
Revenue

Operating
ProfitRecurring
Profit

1,069421

214

213838

1,197515

312311

1,220+127+93+97+97+382+12.0%+22.2%+45.4%+45.6%+45.6%

1,117

465

269

268

1,055

Reference: Net Income per Share: JPY 1,220
Period-end number of shares outstanding: 254,974 shares
Note: The new forecast is based on the “Preconditions for the July 2022 Earnings
Forecast” on page 3. Actual results may vary due to changes in circumstances, so these
forecasts should not be construed as a guarantee of such results. Ichigo Hotel will make aforecast revision should a material discrepancy emerge between this forecast and results.

12. July 2022 Earnings Forecast Revision Rationale
Ichigo Hotel is revising up its July 2022 fiscal period earnings forecast (announced onMarch 17, 2022) on the back of greater than expected variable rent at the Valie Hotel
Hiroshima due to Hiroshima Prefecture temporarily leasing all rooms starting in midFebruary 2021 and at the Nest Hotel Kumamoto due to Kumamoto Prefecture
temporarily leasing all rooms starting on February 1, 2022. Both prefectures will continue
the temporary leasing of rooms during the July 2022 fiscal period.
As a result, the forecast for July 2022 operating revenue, operating profit, recurring
profit, net income, and dividend per share are expected to increase by JPY 127 million(+12.0%), JPY 93 million (+22.2%), JPY 97 million (+45.4%), JPY 97 million (+45.6%),
and JPY 382 (+45.6%) respectively, versus the previous forecast.
Business and leisure demand has been gradually recovering on the back of the lifting ofCovid restrictions, and Ichigo Hotel’s July 2022 RevPAR based on actual February toMay 2022 results for its 15 variable rent hotels is JPY 4,137 (+49.1% YOY).
There is no revision to the January 2023 fiscal period earnings forecast.
Should any further change to the outlook for operating results arise, Ichigo Hotel willpromptly disclose the details.

2Preconditions for the July 2022 Earnings Forecast
Preconditions
PeriodNumber ofHotels

 February 1, 2022 to July 31, 2022 (181 days)
 24 hotels
Within operating revenue, rental income is forecast based on current lease contracts,
taking into consideration such factors as hotel and market conditions.1
Forecast Operating Performance2

3

Occupancy
ADR4

July 2022 Fiscal Period
78.1%
JPY 5,0841OperatingRevenue

The forecast rental income assumes operators and tenants will fully pay theircontractual rents without delay or default.
2The 16 variable rent hotels are: Smile Hotel Kyoto Shijo, Nest Hotel Sapporo
Ekimae, The OneFive Osaka Sakaisuji, Nest Hotel Sapporo Odori, The OneFive
Fukuoka Tenjin, Nest Hotel Osaka Shinsaibashi, Smile Hotel Tokyo Asagaya, Nest
Hotel Matsuyama, The OneFive Garden Kurashiki, Hotel Wing InternationalNagoya, Hotel Wing International Kobe Shin Nagata Ekimae, Nest HotelKumamoto, Valie Hotel Hiroshima, HOTEL EMIT SHIBUYA, The OneFiveOkayama, and Capsule Plus Yokohama. Data for Capsule Plus Yokohama isexcluded from the above forecast because the operator did not give consent todisclose forecasts.
3
Occupancy is calculated with the following formula:
Occupancy = Total number of guest rooms occupied during the period / (total
number of guest rooms * number of days hotel was in operation during the period)
4
ADR or Average Daily Rate is calculated with the following formula:
ADR = Total sales from accommodation (excluding restaurant charges and otherservice fees) / number of guest rooms occupied during the period
Details of the July 2022 Rental Income Forecast by Hotel(JPY million)
Fixed Rent/
Minimum Variable
Hotel Name
GuaranteedRent
Rent
Smile Hotel Kyoto Shijo
30–
Nest Hotel Sapporo Ekimae
31
13
The OneFive Osaka Sakaisuji
11
Comfort Hotel Hamamatsu
55–
Nest Hotel Sapporo Odori
27–
The OneFive Fukuoka Tenjin
34–
Nest Hotel Osaka Shinsaibashi
66–
Comfort Hotel Central International Airport
151–

3Total3044255
273466151

Smile Hotel Tokyo Asagaya
Nest Hotel Matsuyama
The OneFive Okayama
Comfort Hotel Kushiro
Comfort Hotel Suzuka
The OneFive Garden Kurashiki
Nest Hotel Kumamoto
Valie Hotel Hiroshima
HOTEL EMIT SHIBUYAOther1Total

6136691815–
251747
217
908

27–––
364
125–
26244

63
43
69
1815
489
143
47
243
1,152

1

Figures for Hotel Wing International Nagoya, Hotel Wing International Kobe
Shin Nagata Ekimae, Hotel Livemax Nihombashi-Hakozaki, Capsule Plus
Yokohama, Urbain Hiroshima Executive, Washington Hotel Plaza Shimonoseki
Eki Nishi, and Comfort Hotel Nagano are included in “Other” because the hotel
operators did not provide consent to disclose hotel-specific data.
 Retail: JPY 29 million of rental income (including utilities income) from retailtenants at The OneFive Osaka Sakaisuji, Hotel Wing International Kobe Shin
Nagata Ekimae, and Smile Hotel Tokyo Asagaya, and from banquet rooms at Nest
Hotel Kumamoto.

OperatingExpenses

 Depreciation: JPY 361 million. Depreciation has been calculated using thestraight-line method.
 Property and city planning taxes: JPY 120 million
 Building maintenance and repair expenses are based on what Ichigo Investment
Advisors, the asset management company of Ichigo Hotel, estimates will benecessary for each hotel during the period. However, actual expenses for theperiod could differ significantly from these forecast amounts for reasons including
the variability of maintenance and repair expenses, one-time costs due to
unexpected building damage, etc.
 Rental expenses, Ichigo Hotel’s principal operating expense (other thandepreciation, see above), are calculated based on historical data adjusted for
anticipated expense variations.
 Actual operating expenses may differ significantly from these assumptions due tounforeseeable factors.
 SG&A expenses: JPY 3.1 million for engineering report costs and JPY 0.5 million
for environmental certification costs.

Non-OperatingExpenses

 Interest expenses and other borrowing-related expenses: JPY 204 million

Borrowings

 Total borrowings: JPY 26.34 billion as of July 31, 2022, including loans andbonds.

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Number ofShares 254,974 shares issued and outstanding as of July 21, 2022. The forecast assumes
there will be no additional new issuance of shares and/or cancellation of sharesthrough July 31, 2022.

Dividend The dividend forecast assumes that dividends will comply with the dividend
distribution policy stipulated in Ichigo Hotel’s Articles of Incorporation.
 The dividend is subject to change due to factors such as sales of portfolio assets,changes in rental income associated with operator turnover, the occurrence of
unexpected maintenance and repair costs, and fluctuations in interest rates.

Dividend in
Excess ofEarnings

 Ichigo Hotel does not plan on paying any Dividend in Excess of Earnings.

Other This forecast assumes that there are no material revisions to laws and regulations,the tax system, accounting standards, listing rules of the Tokyo Stock Exchange,
and rules of the Investment Trusts Association, Japan, and no material changes inthe state of the economy and real estate market conditions.
 Given ongoing Covid uncertainty, these earnings forecasts are subject to change.

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