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.
December 9, 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, Representative Director and President
Contact:
Makoto Hanamura
Director of the Board, Managing Director
Head of Finance and Planning Division
TEL: +81-3-6422-0530
Notice Concerning New Loan (Refinancing), Partial Prepayment of Existing Loansand Partial Cancellation of Interest Rate Swap Contract
Japan Hotel REIT Investment Corporation (hereinafter called “JHR”) informs you that JHR resolved today on
new borrowing (hereinafter called the “New Loan”), partial prepayment of existing loans (hereinafter called the“Prepayment”) and partial cancellation of interest rate swap contract.

1. Summary of the New Loan
JHR will effectively refinance the investment corporation bond, which is due on December 17, 2021 (hereinafter
called the “Investment Corporation Bond to Be Redeemed”).
2. Details of the New Loan
(1) Total Amount of the New Loan
JPY1,500M(2) Details of the New Loan
Name of loan
LenderAmount of the New Loan
Interest Rate
Date of borrowing
Method of borrowing

Interest payment date
Method of principal repayment
Maturity date

Term Loan 72
Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd.,
Sumitomo Mitsui Trust Bank, Limited, Development Bank of Japan Inc.
JPY1,500M
Base interest rate (JBA Japanese Yen TIBOR for 3 months) + 0.50%(*1) (*2)
December 16, 2021 (plan)
Individual loan contracts to be concluded on December 14, 2021 with thelenders indicated above based on the Basic Agreement concluded on
November 13, 2013 (including subsequent amendments).
The first interest payment date is the end of December 2021. Subsequentinterest payment dates shall be at the end of March 2022, the end of June
2022, the end of September 2022 (if the payment date is not a business day, it
shall be paid on the preceding business day) and on the maturity date.
Lump-sum payment on the maturity date
December 16, 2022 (borrowing term: 1 year)
1Collateral

Unsecured/Unguaranteed(*1) Except for the initial interest payment. base interest rate to be applied to the calculation period for the interest to bepaid at interest payment dates, will be JBA Japanese Yen TIBOR for 3 months at 2 business days prior to preceding
interest payment date. Please refer to the website of JBA TIBOR Administration for the JBA Japanese Yen TIBOR(https://www.jbatibor.or.jp/english/rate/).
(*2) The base interest rate for the initial interest calculation period will be JBA Japanese Yen TIBOR for 1 month.

3. Summary of the Investment Corporation Bond to Be Redeemed(1) Details of the redemption
JHR plans to redeem the investment corporation bond with using the New Loan.
(2) Total amount of the redemption
JPY1,500M(3) Scheduled date of the redemption
December 17, 2021
(4) Details of the Investment Corporation Bond to be Redeemed

Issue date

Fourth unsecured investment corporation bonds(Pari passue covenants between investment corporation bonds areattached.)
December 19, 2014

Redemption date

December 17, 2021

Issue balance

JPY1,500M

Investment Corporation Bond

4. Summary of the Prepayment(1) Details of the Prepayment
In accordance with the sale of the property announced in the press release, “Notice Concerning Sale of Asset(ibis Tokyo Shinjuku)” dated September 15, 2021, JHR plans to prepay the loans below with using the portionof the proceeds from the sale.
(2) Total amount of the Prepayment
JPY4,000M(3) Scheduled date for the Prepayment
December 17, 2021
(4) Details of the individual loans to be prepaid
Loan
Lenders to be borrowed
Lenders to be prepaid
Borrowing balance before
prepayment
Prepayment amount

Term Loan 70
Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd.,
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd.,
Sumitomo Mitsui Trust Bank, Limited
JPY935M
JPY935M

Date of borrowing

June 30, 2021

Maturity date

December 30, 2021
2

Interest rate
Borrowing balance after
prepayment

Base interest rate (JBA Japanese Yen TIBOR for 1 month) + 0.50%

LoanTerm Loan 11
Sumitomo Mitsui Banking Corporation, Shinsei Bank, Limited
Mizuho Bank, Ltd., Resona Bank, Limited
Sumitomo Mitsui Trust Bank, Limited, Aozora Bank, Ltd.
Sumitomo Mitsui Banking Corporation, Shinsei Bank, Limited
Mizuho Bank, Ltd., Resona Bank, Limited
Sumitomo Mitsui Trust Bank, Limited, Aozora Bank, Ltd.

Lenders to be borrowed
Lenders to be prepaid
Borrowing balance before
prepayment
Prepayment amount

JPY0M

JPY7,900M
JPY2,389M

Date of borrowing

January 30, 2015

Maturity date

January 31, 2022

Interest rate
Borrowing balance after
prepayment

Base interest rate (JBA Japanese Yen TIBOR for 1 month) + 0.55%

Loan

Term Loan 14

Lenders to be borrowed

Aozora Bank, Ltd., MUFG Bank, Ltd.

Lenders to be prepaid
Borrowing balance before
prepayment
Prepayment amountMUFG Bank, Ltd.

Date of borrowing

July 10, 2015

Maturity dateJune 30, 2022

Interest rate
Borrowing balance after
prepayment

Base interest rate (JBA Japanese Yen TIBOR for 1 month) + 0.55%

Loan

Term Loan 22-2
The Nomura Trust and Banking Co., Ltd., Development Bank of Japan
Inc., The Chiba Bank, Ltd., The Bank of Fukuoka, Ltd.
The Bank of Fukuoka, Ltd.

Lenders to be borrowed
Lenders to be prepaid
Borrowing balance before
prepayment
Prepayment amount

JPY5,511M

JPY1,500M
JPY77M

JPY1,423M

JPY2,650M
JPY114M

Date of borrowing

March 31, 2016

Maturity date

March 31, 2024

Interest rate
Borrowing balance after
prepayment

Base interest rate (JBA Japanese Yen TIBOR for 1 month) + 0.60%
JPY2,536M

3LoanLenders to be borrowedLenders to be prepaid
Borrowing balance before
prepayment
Prepayment amount

Term Loan 23
Sumitomo Mitsui Banking Corporation, Shinsei Bank, Limited
Mizuho Bank, Ltd., Resona Bank, Limited,
The Nomura Trust and Banking Co., Ltd.
The Nomura Trust and Banking Co., Ltd.
JPY4,200M
JPY112M

Date of borrowing

March 31, 2016

Maturity date

March 31, 2023

Interest rate
Borrowing balance after
prepayment

Base interest rate (JBA Japanese Yen TIBOR for 1 month) + 0.55%

Loan

Term Loan 46
Sumitomo Mitsui Banking Corporation, Shinsei Bank, Limited
The Chiba Bank, Ltd., THE NISHI-NIPPON CITY BANK, LTD.,
Sompo Japan Insurance Inc.
The Chiba Bank, Ltd., THE NISHI-NIPPON CITY BANK, LTD.,
Sompo Japan Insurance Inc.

Lenders to be borrowed
Lenders to be prepaid
Borrowing balance before
prepayment
Prepayment amount

JPY4,088M

JPY2,850M
JPY170M

Date of borrowing

April 26, 2018

Maturity date

March 31, 2023

Interest rate
Borrowing balance after
prepayment

Base interest rate (JBA Japanese Yen TIBOR for 1 month) + 0.35%

Loan

Term Loan 47

Lenders to be borrowed

The Hiroshima Bank, Ltd.

Lenders to be prepaid
Borrowing balance before
prepayment
Prepayment amountThe Hiroshima Bank, Ltd.

Date of borrowing

April 26, 2018

Maturity date

March 31, 2023

Interest rate
Borrowing balance after
prepayment

0.5225% (fixed rate)

Loan

Term Loan 49

Lenders to be borrowed

The Shizuoka Bank, Ltd.

Lenders to be prepaid
Borrowing balance before
prepayment

The Shizuoka Bank, Ltd.

JPY2,680M

JPY500M
JPY46M

JPY454M

JPY500M
4

Prepayment amount

JPY12M

Date of borrowing

September 28, 2018

Maturity date

September 29, 2023

Interest rate
Borrowing balance after
prepayment

0.5488% (fixed rate)

Loan

Term Loan 71
Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd.,
Resona Bank, Limited, Shinsei Bank, Limited,
Sumitomo Mitsui Trust Bank, Limited, Development Bank of Japan Inc.,
Aozora Bank, Ltd.
Development Bank of Japan Inc.

Lenders to be borrowed
Lenders to be prepaid
Borrowing balance before
prepayment
Prepayment amount

JPY488M

JPY15,847M
JPY145M

Date of borrowing

September 30, 2021

Maturity date

September 30, 2022

Interest rate
Borrowing balance after
prepayment

Base interest rate (JBA Japanese Yen TIBOR for 3 months) + 0.50%

5.

JPY15,702M

Details of Partial Cancellation of Interest Rate Swap Contract< Interest Rate Swap Contract for Term Loan 23>

Counterparty

Daiwa Securities Co. Ltd.

Notional amount before
cancellation

JPY4,700M

Cancellation amount

JPY612M

Notional amount aftercancellation

JPY4,088M

Cancellation date

December 17, 2021

Contract term

March 31, 2016 to March 31, 2023

Interest rate

Fixed interest rate to pay
0.1259%Variable rent to receive
JBA Japanese Yen TIBOR for 1 month

Date to swap interest

The first date is April 30, 2016. Subsequent dates shall be at the end of each monthand the expiration date of the contract (if the date is not a business day, it shall bepaid on the preceding business day).

5

6. Status of the Interest-Bearing Debt Before and After the New Loan (scheduled)(Unit: millions of yen)
Category

BeforeAfterVariance

Short-term loans

23,582

24,002+420

Long-term loans (*2)

103,572

100,652(2,920)Total Loans

127,154

124,654(2,500)Total investment corporation bonds

41,60040,100(1,500)168,754

168,754(4,000)Total interest-bearing debt(*1) Amounts are rounded down to the nearest millions of yen.
(*2) Long-term loans payable within one year are included in the long-term loans.

* The fixed interest rate ratio to the total interest-bearing debt after the New Loan and the Prepayment isforecasted to be around 85%.
7. 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).
8. OtherWith respect to the risks of the New Loan, no important change is required for the “Investment Risks” in theSecurities Report submitted on March 25, 2021 and in the Semiannual Securities Report (Japanese only) submitted
on September 22. 2021.
* Website of Japan Hotel REIT Investment Corporation: https://www.jhrth.co.jp/en6