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.
July 20, 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
Director of the Board, Managing Director,
Head of Planning Division
TEL: +81-3-6422-0530

Notice Concerning Acquisition of Asset(Part of Site of Oriental Hotel Universal City)
This is to inform you that Japan Hotel REIT Advisors, Co., Ltd. (hereinafter called the “Asset ManagementCompany”), the asset management company of Japan Hotel REIT Investment Corporation (hereinafter called “JHR”)
has resolved to acquire a property below (hereinafter called the “Asset for Anticipated Acquisition”) today on behalf ofJHR.

1.

Summary of the Asset for Anticipated Acquisition
Co-owner’s interest (95,290/499,870) of the land at 6-427-2, 428
Details of asset
Shimaya, Konohana-ku, Osaka city, Osaka(registered lot number)
Area of asset(registered area)
Type of asset

8,788.67m2

Transaction price

JPY753,921,147

Appraisal value (Note)
Date ofappraisal

JPY763,000,000

Real estate

June 30, 2021

Seller: Osaka City
Buyer: Mitsubishi UFJ Trust and Banking Corporation
Acquisition by the trustee
Transaction method
under the instruction of JHR, the trust beneficiary(Trust by disposition of trusted asset)(Note) Appraisal value by Rich Appraisal Institute co., Ltd.
Transaction party

2.

Rational for the acquisition
The Asset for Anticipated Acquisition this time is a land (hereinafter called the “Land”) that is part of the site ofOriental Hotel Universal City (hereinafter the “Hotel”), the asset under management of JHR.
Through Mitsubishi UFJ Trust and Banking Corporation, which is the trustee, JHR leases the Land from Osaka
City together with the owners under condominium ownership of the buildings. In memorandum of understanding
accompanying the lease contract of the land, JHR is obligated to purchase the Land at the market value of theLand as vacant lot in accordance with co-ownership interest ratio at the time of the expiration of the lease contractof the land.

1Therefore, the decision to acquire the Land was made upon the expiration of the lease contract of the land (fromAugust 1, 2001 to July 31, 2021). Upon the acquisition of the Asset for Anticipated Acquisition, JHR will
additionally trust cash to the trustee and the trustee will acquire the Land. The necessary procedures forconcluding the purchase and sale agreement have been completed by Osaka City.
JHR believes that the acquisition of the Asset for Anticipated Acquisition will contribute to enhancement of theasset value of the Hotel by terminating the leasehold relationship and eliminating the annual JPY21,220 thousand
ground rent payment, and by having a full ownership of the Hotel.
3.

Summary of the Seller
The seller is Osaka City.

4.

Status of the Seller
The seller does not have any special interest relationship with either JHR or the Asset Management
Company.

5.

Summary of Broker
Not applicable

6.

Settlement Method
JHR plans to trust additional cash by cash on hands.

7.

Schedule for acquisition
Resolution for the acquisition

8.

July 20, 2021

Conclusion of purchase and sale agreement

July 21, 2021 (scheduled)

Settlement and transfer

July 30, 2021 (scheduled)

Future Prospects
The impact is subtle, and no change is required for the operating forecast for the fiscal year ending December
2021 (January 1, 2021 through December 31, 2021).

* Website of Japan Hotel REIT Investment Corporation: https://www.jhrth.co.jp/en/2