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.

August 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
Director of the Board, Managing Director,
Head of Planning Division
TEL: +81-3-6422-0530
Notice Concerning Difference Between Operating Forecast and Actual Results
for the Midterm of the Fiscal Year Ending December 2021 (22nd 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 midterm of the fiscal year ended December 2021 (January 1, 2021 through December 31, 2021),
announced in “Financial Report for the Fiscal Year Ended December 31, 2020 (January 1, 2020 – December 31, 2020),”
dated February 25, 2021 as well as press release named “Notice Concerning Difference Between Operating Forecast andActual 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)” dated February 25, 2021 and the actual results announced today.
JHR also decided to revise 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 actual results for the midterm of the fiscal year ending December 2021
(January 1, 2021 through June 30, 2021)
Operatingrevenue

OperatingincomeOrdinary
incomeNet income

Dividend per unit
(Excess ofearningsexclusive)
JPY

Dividend perunit resulting
from excess ofearnings
JPY

Previous forecast
JPY1M
JPY1M
JPY1M
JPY1M
(A)
4,556
(750)
(1,636)(1,637)－－
Announcement this time
JPY1M
JPY1M
JPY1M
JPY1M
JPY
JPY
(Actual results)(B)
4,589(699)(1,488)(1,488)－－
Variance
JPY1M
JPY1M
JPY1M
JPY1M
JPY
JPY
(C) = (B)－(A)3250148
148－－
Variance ratio%%%%%%(D) = (C) / (A)0.7－－－－－(*) 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 difference between operating forecast and actual results
for the midterm of the fiscal year ending December 2021 (22nd Period) and revisions to the operating forecast and forecast of dividend for the fiscalyear ending December 2021 (22nd period). This document should not be construed as an offer to sell or solicitation of an offer to purchase any
investment units or other investment of JHR. Prospective investors are advised to make any investment decisions at their own risk and responsibility.

12.

Revision of the operating forecast and forecast of dividend for the full fiscal year ending December 2021
(January 1, 2021 through December 31, 2021)

Previous forecast(A)
Revised forecast(B)
Variance(C) = (B)－(A)Variance ratio(D) = (C) / (A)3.

Operatingrevenue

Operatingincome

Ordinaryincome

Net income

JPY1M

JPY1M

JPY1M

JPY1MDividend per unit
(Excess ofearningsexclusive)
JPY

Dividend per unit
resulting fromexcess ofearnings
JPY

13,920

2,715

879

877

270

－

JPY1M
TBD
JPY1M

JPY1M
TBD
JPY1M

JPY1M
TBD
JPY1M

JPY1M
TBD
JPY1M

JPY
TBD
JPY

JPY
TBD
JPY

－－－－－－%%%%%%－－－－－－

Comparison between the previous forecast for the midterm of the fiscal year ending December 2021 (January 1, 2021
through June 30, 2021) and the actual results
In the midterm of the fiscal year ending December 2021, the fixed rent from tenants other than hotels and variable
rent from hotels, etc. exceeded the previous forecast, therefore, operating revenues increased by ¥32 million from theprevious forecast.
In addition, net income increased by ¥148 million from the previous forecast mainly due to a decrease in various
expenses (¥18 million) resulting from a decrease in depreciation expenses from the previous forecast, an increase in
non-operating income (¥76 million) resulting from an income from non-life insurance, etc., and a decrease infinancial costs (¥21 million).
For details of the operating results of hotels with variable rents, etc., please refer to “<Reference Information> Hotel
operation indexes, sales and GOP (gross operating profit)” below.

4.

Rational for the revision of the operating forecast and forecast of dividend for the full fiscal year ending December
2021
As the impact of the outbreak of the COVID-19 continues, including the extension of the government's state of
emergency declaration, it is difficult at this moment to reasonably estimate the performance of hotels throughDecember this year. Moreover, the revenue of JHR is largely attributable to variable rent that is linked to theperformance of the hotels and income from management contract, and it is not possible at this time to reasonably
estimate the operating forecast of JHR for the full fiscal year ending December 2021.
Accordingly, the operating forecast and forecast of dividend of JHR for the full fiscal year ending December 2021
(22nd fiscal period) have been revised from the forecasts announced in Financial Report for the Fiscal Year Ended
December 31, 2020 (January 1, 2020 – December 31, 2020) and press releases dated February 25, 2021 and left
undecided, and will be announced as soon as they can be reasonably estimated.

* 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 difference between operating forecast and actual results
for the midterm of the fiscal year ending December 2021 (22nd Period) and revisions to the 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 purchase any
investment units or other investment of JHR. Prospective investors are advised to make any investment decisions at their own risk and responsibility.

2<Reference Information> Hotel operation indexes, sales and GOP (gross operating profit)
The numeral figures are based on figures obtained from hotel lessees, etc. Please note that these figures have notbeen audited or gone through other procedures. No guarantee is made as to the accuracy or completeness of thefigures and information.
The second half and full year of 2021 are not stated as they are not estimated at this point.
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 numbers in percentage are rounded off to one decimal place.
<1> HMJ Group Hotels (Note 1)
Fiscal year ended December 2020
ResultOccupancy
RateADR(Note 2)

RevPAR(Note 3)

Sales
(JPY 1M)

GOP(JPY 1M)(Note 1)

(Note 2)
(Note 3)Fiscal year ended December 2021

Comparison
with theprevious period

Previousperiod

First halfresult

Comparison
with theprevious period

Comparisonwith theforecast

First half of the year

33.1%

(52.2pt)

36.4%

27.7%

(5.4pt)(8.7pt)Second half of the year

38.4%

(49.5pt)

68.3%

－－－
－

Full year

35.8%(50.8pt)

52.5%

－－

First half of the year

15,222(13.4%)

14,906

13,048(14.3%)(12.5%)

Second half of the year

16,814(14.4%)

19,590－－－－

Full year

16,081(13.7%)

17,979－－First half of the year

5,045

(66.4%)

5,428

3,618

(28.3%)(33.3%)

Second half of the year

6,460

(62.6%)

13,379－－－－Full year

5,757(64.3%)

9,436

－
－

First half of the year

9,167(61.9%)

9,443

8,313(9.3%)(12.0%)

Second half of the year

11,978(55.9%)

20,624

Full year

21,146(58.7%)

30,067－－－－－－First half of the year

(370)

(105.1%)113(136)－%－%

Second half of the year

1,696

(82.8%)

6,280

－

－

－

Full year

1,326(92.3%)

6,393

－

－－

The hotel group combining the hotels which JHR leases to HMJ (Kobe Meriken Park Oriental Hotel, Oriental Hoteltokyo bay, Namba Oriental Hotel, Hotel Nikko Alivila and Oriental Hotel Hiroshima), with the hotels which JHR leases
to HMJ subsidiaries (Okinawa Marriott Resort & Spa, Sheraton Grand Hiroshima Hotel (main facility ofACTIVEINTER 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 Shinsaibashi
and Hilton Tokyo Odaiba, totaled 14 hotels, are referred to as the “HMJ Group Hotels.” Although the lessee of Hotel
Oriental Express Fukuoka Tenjin was changed to a subsidiary of HMJ on June 18, 2021, it is not included in the HMJ
Group Hotels. The same shall apply hereinafter.
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 difference between operating forecast and actual results
for the midterm of the fiscal year ending December 2021 (22nd Period) and revisions to the operating forecast and forecast of dividend for the fiscalyear ending December 2021 (22nd period). This document should not be construed as an offer to sell or solicitation of an offer to purchase any
investment units or other investment of JHR. Prospective investors are advised to make any investment decisions at their own risk and responsibility.

3<2> The 24 Hotels with Variable Rent, etc. (Note 4)
Fiscal year ended December 2020
ResultOccupancy
RateADR

RevPARSalesGOP

Fiscal year ended December 2021

Comparison
with theprevious period

Previous
periodFirst half
resultComparison
with theprevious period

Comparison
with theforecast

First half of the year

34.0%

(51.1pt)

39.4%

30.6%

(3.3pt)(8.8pt)Second half of the year

40.8%

(46.1pt)

68.8%

－－－－

Full year

37.4%(48.6pt)

54.2%

－－

First half of the year

13,362(14.8%)

12,368

10,846(18.8%)(12.3%)

Second half of the year

13,354(22.6%)

16,398－－－－Full year

13,357(19.0%)

14,947－－First half of the year

4,536

(66.0%)

4,868

3,320(26.8%)(31.8%)

Second half of the year

5,445(63.7%)

11,289－－－－Full year

4,993(64.8%)

8,105

－
－

First half of the year

10,718(62.1%)

11,0109,478(11.6%)(13.9%)

Second half of the year

13,378(57.5%)

23,455Full year

24,096(59.6%)

34,466－－－－－－First half of the year(213)(102.4%)

277

(65)

－%

－%

Second half of the year

1,867

(84.2%)

7,046－－－－－－
1,654(92.1%)
7,323
Full year(Note 4) The 24 hotels with Variable Rent, etc. refers to the HMJ Group Hotels plus ibis Tokyo Shinjuku, ibis Styles
Kyoto Station, ibis Styles Sapporo, Mercure Sapporo, Mercure Okinawa Naha, Mercure Yokosuka, the bsuidobashi, the b ikebukuro, the b hachioji and the b hakata, totaled 24 hotels. The same shall apply
hereinafter.

Note: This document is intended to serve as a press release to make available the information on the difference between operating forecast and actual results
for the midterm of the fiscal year ending December 2021 (22nd Period) and revisions to the 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 purchase any
investment units or other investment of JHR. Prospective investors are advised to make any investment decisions at their own risk and responsibility.

4