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.

March 17, 2021
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

Change in Hotel Operator
Ichigo Investment Advisors (“IIA”), the asset management company of Ichigo Hotel,
today decided to appoint a new hotel operator for the Chisun Inn Osaka Honmachi.
1. Change Overview
As part of the operator change, the Chisun Inn Osaka Honmachi is expected to berebranded and renamed as The OneFive Osaka Sakaisuji.
New Operator
Operator
Lease Contract

Rent

Former Operator

Hakata Hotels Inc.
SHR Hotel Lease Co., Ltd.
(“Hakata Hotels”)(“SHR Hotel”)
Fixed Rent (minimum guaranteedFixed Rent + Variable rentrent) + Variable rent
Minimum guaranteed rent: JPY
Fixed rent: JPY 6,600,000 permonth
7,280,949 p.a.1
Variable rent:
Variable rent:
Quarterly GOP less quarterly(a) If Annual Rental Income isminimum guaranteed rent, a fixed between JPY 228,572,000 andpercentage of quarterly revenue, JPY 286,000,000, then 35% of
and a fixed percentage ofthe difference between Annual
quarterly GOP
Rental Income and JPY
228,572,000(b) If Annual Rental Income
exceeds JPY 286,000,000, then(a) plus 30% of the difference
between Annual Rental Incomeand JPY 286,000,000
Tenant Leasehold: JPY
18,000,000
Security Deposit: None

Tenant Leasehold andNone
Security Deposits
1GOP: Gross operating profit
1The minimum guaranteed rent period is from February 2022 to January 2023.
2. Reason for Change
IIA is changing the hotel operator because of the upcoming expiration of the current
lease contract with SHR Hotel. The new hotel operator will be Hakata Hotels, a
consolidated subsidiary of Ichigo, IIA’s parent company. Hakata Hotels currently
operates 13 hotels, including the HOTEL EMIT SHIBUYA, The OneFive Okayama,
and The OneFive Fukuoka Tenjin, which are owned by Ichigo Hotel.
Hakata Hotels was chosen from among several candidate operators based on its
competitive price offering. Under the new contract, the Chisun Inn Osaka Honmachi’s
fixed rent will increase significantly, while the revision of the variable rent component
will increase the potential for upside earnings growth. Hakata Hotels will deploy
PROPERA, an AI-based revenue management system developed by Ichigo, tomaximize earnings and increase guest satisfaction.
3. New Hotel Operator Profile
Name

Hakata Hotels Inc.

Address

3-13-1 Haruyoshi, Chuo-ku, Fukuoka

Representative

Minoru Ishihara, Representative Director & Chairman
Takanobu Kitazaki, Representative Director & President

CapitalJPY 10 million

Date of Incorporation March 11, 2019

Principal Business

1. Development, operation, lease, and management of retailbuildings, hotels and restaurants
2. Lease and management of real estate
3. Design and construction of buildings and interior designs
4. Consulting services related to retail buildings, retail facilities,and restaurants

Relationship withIchigo Hotel or IIA

・The hotel operator is an operator of the HOTEL EMITSHIBUYA, The OneFive Okayama, and The OneFive
Fukuoka Tenjin, which are owned by Ichigo Hotel.
・The hotel operator is a related party as defined in theEnforcement Ordinance of the Investment Trust andInvestment Corporation Law, and is a related party as definedin IIA’s internal rules, given that the hotel operator is a
consolidated subsidiary of Ichigo, IIA’s 100% shareholder.

4. Date of Operator Change
July 1, 2021 (expected)

2

5. Related-Party Transaction
Hakata Hotels is a consolidated subsidiary of Ichigo, IIA’s parent company. Because
Hakata Hotels is a related party as defined in the Ordinance of the Investment Trust andInvestment Corporation Law and IIA’s internal rules, Ichigo Hotel obtained priorapproval for a lease contract as a related-party transaction from IIA’s Board ofDirectors.
6. Earnings Outlook
The impact of the operator change on Ichigo Hotel’s July 2021 and January 2022 fiscal
period earnings has already been reflected in the July 2021 and January 2022 forecastspresented in today’s release “January 2021 Fiscal Period Earnings.”

3