This English translation is provided for information purposes only. If any discrepancy is identified between thistranslation and the Japanese original, the Japanese original shall prevail.
February 25, 2021
REIT Issuer:
Japan Hotel REIT Investment Corporation (TSE code: 8985)
Kaname Masuda, Executive Director
Asset Management Company:
Japan Hotel REIT Advisors Co., Ltd.
Hisashi Furukawa, President & CEO
Contact:
Makoto Hanamura
Executive Director
Head of Planning Group, Operations Division
TEL: +81-3-6422-0530
Notice Concerning Difference Between Operating Forecast and Actual Results
for the Fiscal Year Ending December 2020 (21st Period), and Operating Forecast and Forecast of Dividend
for the Fiscal Year Ending December 2021 (22nd Period)
Japan Hotel REIT Investment Corporation (hereinafter called “JHR”) informs you of the difference between the operating
forecast for the fiscal year ended December 2020 (January 1, 2020 through December 31, 2020), announced in “NoticeConcerning Revision of Operating Forecast and Forecast of Dividend for the Fiscal Year Ended December 2020 (21st Period)”
dated January 8, 2021 and the actual results announced today. JHR also announces the operating forecast and forecast of
dividend for the fiscal year ending December 2021 (January 1, 2021 through December 31, 2021) as follows.

1. Difference between operating forecast and forecast of dividend and actual results for the fiscal year ending December
2020(January 1, 2020 through June 30, 2020)

Previous forecast(A)
Forecast this time
(Actual results)(B)
Variance(C) = (B)－(A)Variance ratio(D) = (C) / (A)(Reference)
(*1)
(*2)
(*3)
(*4)

Operatingrevenue

OperatingincomeOrdinary
incomeNet income

JPY1M

JPY1M

JPY1M

JPY1M

13,818JPY1M

13,838

3,094

JPY1M

3,176

1,306

JPY1M

1,398

1,435

JPY

1,527

410

92

20

JPY1M

JPY1M

JPY1M

%

%

%

%

0.1

81

92

2.6

7.0

390

JPY1M

JPY1M

20

Dividend per unit
(Excess ofearnings
exclusive)
JPY

6.4

JPY

%

5.1

Dividend per unit
resulting fromexcess of earnings
JPY

－
JPY

－
JPY

－
%

－

Net income per unit for the full fiscal year: ¥342
(Calculated based on the average number of investment units during the period (4,462,347 units))
Dividend per unit is calculated based on the number of investment units issued as of today: 4,462,347 units.
Total dividend is planned to be an amount of net income plus the reversed amount of reserve for temporary difference
adjustment in the amount of ¥305 million.
For the details of the result of operation and dividend above, please refer to “Financial Report for the Fiscal Year Ended
December 31, 2020 (January 1, 2020 - December 31, 2020)” dated today.
Amounts are rounded down to the nearest millions of yen and percentages are rounded off to the nearest first decimal
place. The same shall apply hereinafter.

Note: This document is intended to serve as a press release to make available the information on the revision of operating forecast and forecast of dividend
for the fiscal year ending December 2021 (22nd period). This document should not be construed as an offer to sell or solicitation of an offer to purchaseany investment units or other investment of JHR. Prospective investors are advised to make any investment decisions at their own risk and responsibility.

12. Rationale for revisions to the operating forecast for the fiscal year ended December 2020 (January 1, 2020
through December 31, 2020)
Due to the increase in variable rent resulting from the fact that the results of performance of the hotels owned by
JHR were slightly higher than those previously announced, and together with the revision of various expenses
and other operating expenses related to properties, there was a difference of more than 5% in the results ofdividend for the fiscal year ended December 2020 (21st Period).

3. Operating forecast and forecast of dividend for the fiscal year ending December 2021
(January 1, 2021 through December 31, 2021)

Fiscal year ending
December 2021
Midterm
Fiscal year ending
December 2021
Full year(Reference)
(*1)
(*2)
(*3)
(*4)

Net income

Dividend perunit (Excess ofearnings
exclusive)

Dividend perunit resulting
from excess ofearnings

JPY1M

JPY1M

JPY

JPY

(750)

(1,636)(1,637)

－

－

JPY1M

JPY1M

JPY1M

JPY1M

JPY

JPY

13,920

2,715

879

877

270

－

Operatingrevenue

OperatingincomeOrdinary
income

JPY1M

JPY1M

4,556

Forecast of net income per unit for the full fiscal year: ¥196
(Calculated based on the estimated average number of investment units during the period (4,462,347 units))
Dividend per unit is calculated based on the number of investment units issued as of today: 4,462,347 units.
Total dividend is planned to be an amount of net income plus the reversed amount of reserve for temporary difference
adjustment in the amount of ¥330 million.
For the assumptions of the operating forecast and dividend forecast above, please refer to “<Reference Information 1>
Assumptions of the operating forecast for the full fiscal year ending December 2021 (22nd period)” below.
Amounts are rounded down to the nearest millions of yen and percentages are rounded off to the nearest first decimal
place. The same shall apply hereinafter.

Note: This document is intended to serve as a press release to make available the information on the revision of operating forecast and forecast of dividend
for the fiscal year ending December 2021 (22nd period). This document should not be construed as an offer to sell or solicitation of an offer to purchaseany investment units or other investment of JHR. Prospective investors are advised to make any investment decisions at their own risk and responsibility.

2

4.

Highlights of the operating forecast and forecast of dividend
The following is the comparison and the major factors causing the variance between the operating results and dividend
for the full fiscal year ended December 2020 (January 1, 2020 through December 31, 2020) and the operating forecast
and forecast of dividend for the full fiscal year ending December 2021.
Fiscal Year Ended
December 2020
(21st Period)
Results

Properties

(A)

(B)

Comparison
with Previous
Period(B)-(A)

Major Factors Causing the Variance

42

42

-

-

-

-

Acquisition Price

343,038

343,038

343,038

-

-

-

-

Operating Revenue

13,838

10,243

13,92082

0.6%(3,390)3,472

Reasl Estate
Operating Revenue

10,495

10,243

13,920

3,425

32.6%

(232)

3,657

Fixed Rent

7,640

7,491

6,345

(1,294) (16.9%)(149)

Composition

72.8%

73.1%

45.6%

Composition

892

854

932

8.5%

8.3%

6.7%

Variable Rent

1,963

1,896

6,642

Composition

18.7%

18.5%

47.7%

40

4.6%

(16)

4,679

238.3%(66)

1) Decrease in fixed rent of the HMJ Group Hotels (*3) by JPY794
MM(1,145) 2) Decrease in fixed rent of the Ishin Group Hotels (*4) by JPY7 MM

57

4,745 MM
2) Increase in variable rent, etc. of the Accor Group Hotels (*7) by
JPY659 MM
3) Decrease in variable rent of the Ishin Group Hotels by JPY181MM
4) Increase in variable rent of Chisun hotel Kamata by JPY38 MM(*5)5) Decrease in variable rent of other hotels by JPY89MM

Gain on Sale ofProperties, etc.

3,343

-

-

(3,343)-(3,158)(184)

NOI (*8)

6,547

6,267

9,455

2,907

44.4%

(200)

3,107

160.3%

(187)

3,037

6.4%

1.7%

2.6%

0.8%

1,778

1,496

4,628

2,849

Operating Income

5.1%
3,176

0.4%
(428)

1.3%
2,715

0.8%
(460) (14.5%)

Ordinary Income

1,398(2,205)879(519) (37.1%)

Net Income

1,527(2,207)877(649) (42.5%)

Reversed Amount of theReserve for Temporary
Difference Adjustment(Negative Goodwill)

305

324

330

Total Dividends

1,829

-

1,204

4,462,347

4,462,347

4,462,347

410

-

270

Number ofUnits Issued (Unit)
Dividend per Unit (JPY)3) Decrease in fixed rent of Chisun Hotel Kamata by 93 MM (*5)4) Decrease in fixed rent due to the change in lease scheme
accompanying by rebranding by JPY172 MM (*6)5) Decrease in fixed rent in tenants other than hotels by JPY78 MM
1) Increase in variable rent of the HMJ Group Hotels by JPY4,319

NOI Yield

(*2)
(*3)

Existing
Property%

NOI after Depreciation
(*8)

(*1)

Sale of
Property(*2)

42

Other Rent

Profit and Loss Statement

Forecast This
Time

(Unit: millions of yen)

No. of PropertiesNOI Yield after Depreciation

Dividend(Reference)
Annualized
Results(*1)

Fiscal YearEnding December
2021(22nd Period)

24

8.1% Reversed Amount of the Reserve for Temporary Difference Adjustment (*9)

2020: 50-year negative goodwill amortization: JPY262 MM, Loss on retirement of
noncurrent assets: JPY5 MM, Amortization of trademark rights: JPY37 MM
2021: 50-year negative goodwill amortization: JPY262 MM, Loss on retirement of- noncurrent assets: JPY11 MM, Amortization of trademark rights: JPY56 MM(624) (34.1%)-(140) (34.1%)

The assumptions of the annualized effect for the result are as follows.
1) It is assumed that Sotetsu Fresa Inn Shimbashi-Karasumoriguchi sold on July 1, 2020, will not be held throughout theyear and that there will be no gain on sale of real estate properties.
2) The full-year effect of the exchange of a part of the site of Hotel Ascent Fukuoka is assumed. A gain of exchange of realestate, etc. and extraordinary income by the acknowledgement of a claim for refund of the security deposit, which had
not been recorded as security deposit are not assumed.
3) Fixed asset tax, city planning tax, etc. for Hotel Oriental Express Osaka Shinsaibashi and Hilton Tokyo Odaiba acquiredin the fiscal year ended December 2019 (20th period) are assumed to be ¥337 million (for 12 months).
4) The trademark rights are assumed to be held throughout the year and will be amortized over 10 years using the straightline method. Annualized amortization is assumed to be ¥56 million and is appropriated by reserve for temporary
difference adjustment (negative goodwill).
Stating the amount of impact of sale of Sotetsu Fresa Inn Shimbashi-Karasumoriguchi, which was sold on July 1, 2020.
HMJ Group Hotels refers to 14 hotels: Kobe Meriken Park Oriental Hotel, Oriental Hotel tokyo bay, Namba Oriental Hotel,
Hotel Nikko Alivila, and Oriental Hotel Hiroshima, which JHR leases to HMJ, an affiliated company of asset managementcompany (hereinafter called the “Five HMJ Hotels”), plus Okinawa Marriott Resort & Spa, Sheraton Grand Hiroshima Hotel(main facility of ACTIVE-INTER CITY HIROSHIMA), Oriental Hotel Fukuoka Hakata Station, Holiday Inn Osaka Namba,
Hilton Tokyo Narita Airport, International Garden Hotel Narita, Hotel Nikko Nara, Hotel Oriental Express Osaka Shinsaibash,

Note: This document is intended to serve as a press release to make available the information on the revision of operating forecast and forecast of dividend
for the fiscal year ending December 2021 (22nd period). This document should not be construed as an offer to sell or solicitation of an offer to purchaseany investment units or other investment of JHR. Prospective investors are advised to make any investment decisions at their own risk and responsibility.

3

(*4)
(*5)
(*6)

(*7)
(*8)

(*9)

and Hilton Tokyo Odaiba, which JHR leases to subsidiaries of HMJ. HMJ stands for Hotel Management Japan Co., Ltd. The
same shall apply hereinafter.
Ishin Group Hotels refers to 4 hotels: the b suidobashi, the b ikebukuro, the b hachioji, and the b hakata. The same shall apply
hereinafter.
Hotel Vista Kamata Tokyo was rebranded to Chisun Hotel Kamata with Solare Hotels and Resorts Co., Ltd. as the lessee on
January 1, 2021. No fixed rent is posted due to a new fixed-term building lease contract, which resulted in a rent structurewith only variable rent effective January 1, 2021.
Hotel Ascent Fukuoka and Hotel Keihan Universal City are planned to be rebranded with HMJ subsidiaries as the lessees onJune 18, 2021 and July 1, 2021, respectively. For the rent for the fiscal year ending December 2021 (22nd Period) after
rebranding, please refer to “<Reference Information 1> Assumptions of the operating forecast for the full year of the fiscal
year ending December 2021 (22nd period)” below.
Accor Group Hotels refers to 6 hotels: ibis Tokyo Shinjuku, ibis Styles Kyoto Station, ibis Styles Sapporo, Mercure Sapporo,
Mercure Okinawa Naha, Mercure Yokosuka. The same shall apply hereinafter.
Each is calculated using the following formula. The same shall apply hereinafter.
NOI (Net Operating Income) = Real estate operating revenue – Real estate operating costs + Depreciation + Loss on retirementof noncurrent assets + Asset retirement obligations expenses
NOI yield = NOI ÷ acquisition price
NOI after depreciation = Real estate operating revenue – Real estate operating costs
NOI yield after depreciation = NOI after depreciation ÷ acquisition priceFor the details of the reversed amount of the reserve for temporary difference adjustment, please refer to “<Reference
Information 1> Assumptions of the operating forecast for the full year of the fiscal year ending December 2021 (22nd period)”
below.

(Note)
The above is the forecast based on status of operation as of today, and actual dividend per unit may fluctuate. This forecast
does not guarantee the amount of dividend shown above.
* Website of Japan Hotel REIT Investment Corporation: https://www.jhrth.co.jp/en/

Note: This document is intended to serve as a press release to make available the information on the revision of operating forecast and forecast of dividend
for the fiscal year ending December 2021 (22nd period). This document should not be construed as an offer to sell or solicitation of an offer to purchaseany investment units or other investment of JHR. Prospective investors are advised to make any investment decisions at their own risk and responsibility.

4<Reference Information 1>
Assumptions of the operating forecast for the full fiscal year ending December 2021 (22nd period)
Item

Assumptions

Calculation ・ Full fiscal year ending December 2021 (22nd Period): January 1, 2021 through December 31, 2021
Period(365 days)
・ The 42 properties owned by JHR as of today are assumed.
・ It is assumed that there will be no change (acquisition of new property or disposition of property, etc.) in
Assets underassets under management through the end of the fiscal year ending December 2021 (22nd period).
Management
However, the actual results may fluctuate depending on the changes in assets under management that may
take place.
・ Operating revenue is calculated based on the conditions of the lease and other effective contracts, taking
into consideration the competitiveness of hotels, market environment, and other factors. If there are lease
contracts with facilities other than hotels, such as commercial facilities and offices, operating revenue
calculated based on the said lease contracts is included. It may fluctuate significantly due to the impact of
COVID-19.
・ Rents, etc. of the main hotels are calculated based on the following assumptions.
(1) The HMJ Group Hotels
JHR concluded a memorandum of understanding for the fixed-term building lease contract with the HMJ
Group Hotels on August 25, 2020. From January 1, 2021 through December 31, 2021, the rent is only
variable rent and is calculated by multiplying the hotel AGOP (*1) by the variable rent ratio for each hotel.
However, if AGOP is less than 0 (zero), the variable rent will be 0 (zero).
(Unit: millions of yen)
Hotel AGOP
Kobe Meriken Park Oriental
Hotel
Oriental Hotel tokyo bay
Operating
Revenue

Namba Oriental Hotel
Hotel Nikko Alivila
Oriental Hotel Hiroshima
Okinawa Marriott Resort &Spa
Sheraton Grand Hiroshima
Hotel (*2)
Oriental Hotel Fukuoka Hakata
StationHoliday Inn
Osaka Namba (*3)
Hilton Tokyo Narita Airport
International Garden Hotel
NaritaHotel Nikko Nara
Hotel Oriental Express Osaka
Shinsaibashi (*3)

Midterm
Full year
Midterm
Full year
Midterm
Full year
Midterm
Full year
Midterm
Full year
Midterm
Full year
Midterm
Full year
Midterm
Full year
Midterm
Full year
Midterm
Full year
Midterm
Full year
Midterm
Full year
Midterm
Full year

(0)
482
(54)
626
166
642
161
1,382
(41)
116
(132)
402
117
396
75
402
(17)
(33)
(62)
348
(3)
189
(60)
124
(19)
(41)

Variable rent ratio

Variable rent

86.0%

－
414
－
495
151
584
119
1,022
－
103
－
358
108
368
73
389
－
－
－
330
－
179
－
117
－
－

79.0%
91.0%
74.0%
89.0%
89.0%
93.0%
97.0%
98.0%
95.0%
95.0%
95.0%
87.0%

Note: This document is intended to serve as a press release to make available the information on the revision of operating forecast and forecast of dividend
for the fiscal year ending December 2021 (22nd period). This document should not be construed as an offer to sell or solicitation of an offer to purchaseany investment units or other investment of JHR. Prospective investors are advised to make any investment decisions at their own risk and responsibility.

5

Item

Assumptions
Hotel AOP
Hilton Tokyo Odaiba
Total
(*1)

(*2)

(105)
1,034
22
6,073

Variable rent

97.0%

－
1,003
453
5,370

－

AGOP (adjusted GOP) is the amount calculated by subtracting certain fees and other items from GOP. GOP (grossoperating profit) and GOL (gross operating loss) are the remainder after expenses incurred in hotel operation, suchas personnel costs and general and administrative expenses, etc., are deducted from total sales. The same shallapply hereinafter
Stating the rent for Sheraton Grand Hiroshima Hotel, the major facility of ACTIVE-INTER CITY HIROSHIMA.
Fixed rent and variable rent for office and commercial tenants of ACTIVE-INTER CITY HIROSHIMA are as
follows.

Midterm
Full year(*3)

Midterm
Full year
Midterm
Full year

Variable rent ratio(Unit: millions of yen)Fixed rent
Total rent
240
244
476
483

Variable rent
3
7

It is assumed that Holiday Inn Osaka Namba and Hotel Oriental Express Osaka Shinsaibashi are closed throughout
the year.

(2) Hotel Ascent Fukuoka and Hotel Keihan Univesal City
Hotel Ascent Fukuoka and Hotel Keihan Univesal City are planned to be rebranded with HMJ subsidiaries
as the lessees on June 18, 2021 and July 1, 2021, respectively. The assumptions for fixed and variable rent
stipulated in the fixed-term building contract after rebranding concluded on February 12, 2021 are as
follows. The starting date of the variable rent is January 1, 2022, and the variable rent is not expected in thefiscal year ending December 2021.
<Hotel Ascent Fukuoka (name after rebranding: Hotel Orinetal Express Fukuoka Tenjin)>
Lease term: June 18, 2021 to December 31, 2031
Total rent = Fixed rent + Variable rent
Fixed rent = ¥150 million (annual)
Fixed rent is waived from June 18, 2021 through June 30, 2022. The fixed rent to be recognized for the
fiscal year ending December 2021 is expected to be ¥72 million, which is 6.4 months’ worth of the average
fixed rent of ¥11 million per month, divided proportionally by the total fixed rent of the whole lease periodof ¥1,425 million.
Variable rent = [Hotel AGOP – AGOP base amount of ¥165 million] × Variable rent ratio (97.0%)<Hotel Keihan Universal City (name after rebranding: undecided)>Lease term: July 1, 2021 to December 31, 2031
Total rent = Fixed rent + Variable rent
Fixed rent = ¥350 million (annual)
Fixed rent is waived from July 1, 2021 through June 30, 2022. The fixed rent to be recognized for the
fiscal year ending December 2021 is expected to be ¥158 million, which is 6 months’ worth of the average
fixed rent of ¥26 million per month, divided proportionally by the total fixed rent of the whole lease periodof ¥3,325 million.
Variable rent = [Hotel AGOP – AGOP base amount of ¥370 million] × Variable rent ratio (95.0%)(*4)

For Hotel Ascent Fukuoka and Hotel Keihan Universal City, the variable rents from the current lessees before
rebranding are not expected.

Note: This document is intended to serve as a press release to make available the information on the revision of operating forecast and forecast of dividend
for the fiscal year ending December 2021 (22nd period). This document should not be construed as an offer to sell or solicitation of an offer to purchaseany investment units or other investment of JHR. Prospective investors are advised to make any investment decisions at their own risk and responsibility.

6

Item

Assumptions(3) Income from management contracts (*5) and variable rent from other hotels with variable rent, etc.
(Unit: millions of yen)ibis Tokyo Shinjuku (*5)
ibis Styles Kyoto Station (*5)
ibis Styles Sapporo (*5)
Mercure Sapporo (*5)
Mercure Okinawa Naha (*5)
Mercure Yokosuka
the b suidobashi (*6)
the b ikebukuro (*6)
the b hachioji (*6)
the b hakata (*6)
Comfort Hotel Tokyo Higashi Nihombashi
Smile Hotel Nihombashi Mitsukoshimae
Chisun Hotel Kamata (*7)
Chisun Inn Kamata
Hilton Tokyo Bay
Hilton Nagoya
Total
(*5)

(*6)
(*7)
(*8)

Midterm

Full year

2
(1)
33
(6)
44
75
－
43
－
－
－
－
13
7
Undisclosed (*8)
Undisclosed (*8)
365

90
52
228
224
99
101
－
59
－
－
－
－
38
19
Undisclosed (*8)
Undisclosed (*8)
1,265

For income from management contracts, it is assumed that each hotel’s GOP amount is recognized as income frommanagement contracts, and the management contract fees to be paid by JHR are recognized as an operating
expense. If the performance for the midterm period is expected to be GOL, it is recognized as minus in the income
from management contracts.
The variable rent for the Ishin Group Hotels is the sum of fixed and variable rent from January 1, 2021 throughDecember 31, 2021 due to the fixed-term building lease contract concluded on October 30, 2020, and the variable
rent is recognized when GOP reaches the certain levels.
Hotel Vista Kamata Tokyo was rebranded to Chisun Hotel Kamata with Solare Hotels and Resorts Co., Ltd. as thelessee on January 1, 2021.
Undisclosed since tenants that concluded lease contracts did not agree to disclose rent revenue, etc.

・ The following is the breakdown of variable rent and income from management contracts(Unit: millions of yen)
The HMJ Group Hotels
Office and commercial tenants (*9)
Other hotels with variable rent, etc. (16 hotels)
Total (30 hotels)
(*9)
(*10)

Midterm

Full year

453
3
365
821

5,370
7
1,265
6,642

Variable rent for office and commercial tenants of ACTIVE-INTER CITY HIROSHIMA is shown.
For details of variable rent, please refer to page 51, “3. Reference Information; (ii) Assets under management;(C) Other major assets under management; C. Overview of the hotel business; a. Rent structures of hotels withvariable rent, management contract or revenue sharing” of the “Financial Report for the Fiscal Year Ended
December 31, 2020 (January 1, 2020 - June 30, 2020)” dated February 25, 2021.

Note: This document is intended to serve as a press release to make available the information on the revision of operating forecast and forecast of dividend
for the fiscal year ending December 2021 (22nd period). This document should not be construed as an offer to sell or solicitation of an offer to purchaseany investment units or other investment of JHR. Prospective investors are advised to make any investment decisions at their own risk and responsibility.

7

Item

Assumptions

OperatingExpenses・ ¥250 million is assumed as the risk of rent reduction, considering the possibility of the impact on operating
revenue by rent reductions due to the impact of COVID-19.
・ With respect to real estate leasing expenses, which constitute a major part of the operating expenses, expenses
other than depreciation are calculated based on historical data, and variable factors are reflected in thecalculation.
・ It is assumed that ¥1,994 million will be recognized as expenses for fixed asset taxes, city planning taxes,
etc.
・ In general, fixed asset tax and city planning tax and other taxes and public dues on acquired assets are settledwith the previous owners at the time of acquisition, calculated on a pro rata basis of the holding period. For
JHR, such settlement amount is included in the acquisition price, and it will not be recognized as expenses
for the calculation period.
・ Capital expenditure is assumed to be ¥3,522 million (¥2,259 million for capital expenditure I, ¥1,263 million
for capital expenditure II). Capital expenditure III is not planned for the fiscal year ending December 2021.

(*) JHR classifies capital expenditures into the following three categories. (I) Capital investment related to renewal ofequipment and facilities of buildings which is required to maintain proper values of properties, (II) capital investment for
fixtures, furniture and equipment that are not directly related to building structure or facilities but necessary for operating
hotels, and (III) strategic capital investment such as renovating guest rooms, etc. for improving the competitiveness ofthe hotels.

・ Depreciation is calculated using the straight-line method including the planned capital expenditures above,and is assumed to be ¥4,813 million.
・ Repair expenses for buildings are recognized as expenses in the assumed amount necessary for each operating
period. Please note that the repair expenses of each operating period may differ materially from the forecast
amount for various reasons, such as; (1) Emergency repair expenses may be necessary due to damage tobuildings from unexpected causes; (2) The amount of repair expenses generally tends to increase in difference
over time; and (3) Repair expenses are not required on a regular basis.
・ ¥1,836 million is expected for borrowing-related costs, including interest expense, amortization for financing
Non-operating
fee and arrangement fee, and other non-operating expenses.
Expenses・ Expenses for issuance of new investment units and secondary offering are amortized over a period of three
years by the straight-line method.

・ The balance of interest-bearing debt (sum of loans and investment corporation bonds) as of the end of
December 2020 was ¥168,754 million and is assumed to be ¥168,754 million as of the end of December
2021.
Interest・ There are ¥23,582 million of loans due during the fiscal year ending December 2021 (22nd Period), however,bearing Debt
it is assumed that the entire amount will be refinanced.
・ There are ¥1,500 million of investment corporation bonds that mature during the fiscal year ending December
2021 (22nd Period), however, it is assumed that the same amount of investment corporation bonds will be
issued.
・ Dividend per unit for the fiscal year ending December 2021 (22nd period) is calculated based on the following
assumptions.

Dividend per
Unit

Net income
Reversal of reserve for temporary difference adjustment(negative goodwill)
50-year amortization amount of negative goodwill (*1)
Loss on retirement of noncurrent assets (*2)
Amortization of trademark rights (*3)
Distributable amount
Total number of investment units issued
Dividend per unit

¥877 million¥262 million¥11 million¥56 million¥1,208 million
4,462,347 units¥270

Note: This document is intended to serve as a press release to make available the information on the revision of operating forecast and forecast of dividend
for the fiscal year ending December 2021 (22nd period). This document should not be construed as an offer to sell or solicitation of an offer to purchaseany investment units or other investment of JHR. Prospective investors are advised to make any investment decisions at their own risk and responsibility.

8

Item

(*1)
(*2)
(*3)

Assumptions¥262 million (hereinafter called “50-year amortization amount of negative goodwill”) is scheduled to be paid out
as dividends, with the remaining balance of the reserve for temporary difference adjustment set as the maximum
amount, for every fiscal year.
The amount recognized as a loss on retirement of noncurrent assets will be appropriated by reserve for temporary
difference adjustment (negative goodwill) and is expected to have no impact on dividend per unit.
The trademark rights are amortized over 10 years using the straight-line method. Amortization is expected to berecognized during the current fiscal year will be appropriated by reserve for temporary difference adjustment(negative goodwill) and is expected to have no impact on dividend per unit.

・ Dividend per unit may fluctuate due to various causes, such as fluctuation of rent revenue resulting fromtransfer of assets under management, change of tenants, etc. at hotels, change in the business environment ofhotel business for hotel tenants, etc., unexpected repairs, and actual number of new investment units issued,
etc.
・ The remaining balance of the reserve for temporary difference adjustment (negative goodwill) after theappropriation of the reserve for temporary difference adjustment (negative goodwill) for dividends for the
fiscal year ending December 2021 (22nd period) is expected to be ¥9,981 million.
Dividend per
Unit・ It is assumed that the excess of earnings (dividend per unit resulting from excess of earnings) will not be
Resulting
distributed.
from Excessof Earnings

Others・ It is assumed that revision in law, tax system, accounting standard, regulations of the listing, and regulationsof the Investment Trusts Association, Japan that may impact the forecast above will not be made.
・ It is assumed that unexpected major incident will not occur in the general economy, real estate market andhotel business environment, etc.
・ The numerical values are rounded down to the nearest millions of yen in the assumptions above.

Note: This document is intended to serve as a press release to make available the information on the revision of operating forecast and forecast of dividend
for the fiscal year ending December 2021 (22nd period). This document should not be construed as an offer to sell or solicitation of an offer to purchaseany investment units or other investment of JHR. Prospective investors are advised to make any investment decisions at their own risk and responsibility.

9<Reference Information 2> Hotel operation indexes, sales and GOP
The numeral figures are based on figures obtained from hotel lessees, etc. Please note that these figures have not been auditedor gone through other procedures. No guarantee is made as to the accuracy or completeness of the figures and information.
ADR and RevPAR are rounded off to the nearest yen. Sales and GOP are rounded off to the nearest millions of yen.
Occupancy rate and comparison with the previous period are rounded off to one decimal place.
<1> The 24 Hotels with Variable Rent, etc. (*1)
Fiscal year ended December 2020
Results

Fiscal year ending December 2021

Comparison withprevious period

Forecast thistimeComparison withprevious period

Occupancy
Rate

First half of the year

34.0%

(51.1pt)

39.4%

5.4pt

Second half of the year

40.8%

(46.1pt)

68.8%

28.1ptFull year

37.4%(48.6pt)

54.2%

16.8ptADR(*2)

First half of the year

13,362(14.8%)

12,368(7.4%)

Second half of the year

13,354(22.6%)

16,39822.8%

Full year

13,357(19.0%)

14,947

11.9%

RevPAR(*3)

First half of the year

4,536

(66.0%)

4,868

7.3%

Second half of the year

5,445

(63.7%)

11,289107.3%

Full year

4,993(64.8%)

8,105

62.3%

Sales
(JPY1M)First half of the year

10,718(62.1%)

11,010

3.2%

Second half of the year

13,378(57.5%)

23,455

91.4%

Full year

24,096(59.6%)

34,466

50.3%

First half of the year

(213)

(102.4%)

277－%

Second half of the year

1,867

(84.2%)

7,046

277.4%

Full year

1,654(92.1%)

7,323

342.9%GOP(JPY1M)
(*1)
(*2)
(*3)

The 24 Hotels with Variable Rent, etc. represents 24 hotels including the HMJ Group Hotels, the Ishin Group Hotels andthe Accor Group Hotels.
ADR: Represents average daily rate, which is calculated by dividing revenue of the rooms department for a given period(including service charges) by the total number of rooms sold during the period. The same shall apply hereinafter.
RevPAR represents revenue per available room, which is calculated by dividing total room revenue for a certain period(including service charges) by the total number of rooms available for sale during the period. The same shall apply
hereinafter.

Note: This document is intended to serve as a press release to make available the information on the revision of operating forecast and forecast of dividend
for the fiscal year ending December 2021 (22nd period). This document should not be construed as an offer to sell or solicitation of an offer to purchaseany investment units or other investment of JHR. Prospective investors are advised to make any investment decisions at their own risk and responsibility.

10

<2>The HMJ Group Hotels
Fiscal year ended December 2020
Results

Fiscal year ending December 2021

Comparison withprevious period

Forecast thistimeComparison withprevious period

Occupancy
Rate

First half of the year

33.1%

(52.2pt)

36.4%

3.3pt

Second half of the year

38.4%

(49.5pt)

68.3%

29.9ptFull year

35.8%(50.8pt)

52.5%

16.7ptFirst half of the year

15,222(13.4%)

14,906(2.1%)

ADR

Second half of the year

16,814(14.4%)

19,590

16.5%

Full year

16,081(13.7%)

17,979

11.8%

RevPARSales(JPY1M)GOP(JPY1M)First half of the year

5,045

(66.4%)

5,428

7.6%

Second half of the year

6,460

(62.6%)

13,379107.1%

Full year

5,757(64.3%)

9,436

63.9%

First half of the year

9,167

(61.9%)

9,443

3.5%

Second half of the year

11,978(55.9%)

20,624

81.6%

Full year

21,146(58.7%)

30,067

47.7%

First half of the year

(370)

(105.1%)

113－%

Second half of the year

1,696

(82.8%)

6,280

270.3%

Full year

1,326(92.3%)

6,393

382.2%

Note: This document is intended to serve as a press release to make available the information on the revision of operating forecast and forecast of dividend
for the fiscal year ending December 2021 (22nd period). This document should not be construed as an offer to sell or solicitation of an offer to purchaseany investment units or other investment of JHR. Prospective investors are advised to make any investment decisions at their own risk and responsibility.

11