Ichigo Hotel (3463)

Ichigo Hotel January 2023 Fiscal Period
Corporate Presentation
April 12, 2023

Ichigo Hotel REIT Investment Corporation (3463)
Ichigo Investment Advisors Co., Ltd.

© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

www.ichigo-hotel.co.jp/en

On March 16, 2023, Ichigo Hotel announced its January2023 fiscal period earnings, the issuance of new shares via
a public offering, and an acquisition of hotel assets.
However, on March 28, 2023, Ichigo Hotel’s Board of
Directors decided to cancel the issuance of new shares via
public offering and asset acquisitions due to an
administrative error in its January 2023 fiscal period
earnings announced on March 16, 2023.
Ichigo Investment Advisors, Ichigo Hotel’s asset
management company, deeply apologizes to all Ichigo Hotelshareholders and investors for the new share offering
cancellation. Ichigo Investment Advisors will incur all of thecosts associated with the cancellation and take necessary
measures to prevent future errors from occurring again.
© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

2

Make The World
More Sustainable© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Cancelled Public Offering Rationale
 Positive Impact From Growing Ichigo Hotel
Portfolio
January 2023 Results
 January 2023 Highlights
 January 2023 Earnings Breakdown Hotel Operating Results: Significant YOY Increases
in Revenue, RevPAR, Occupancy, ADR
 Hotel Operating Results: YOY Growth in All
Regions Via ADR Increase RevPAR, Occupancy, & ADR Recovery on Track Organic Growth: Driving Earnings Growth(Operator Change)
 Organic Growth: Ichigo Hotel Value-Add: The
OneFive Garden Kurashiki External Growth: Strengthened Portfolio Via Hotel
Acquisition
 External Growth: Portfolio Growth Opportunity Via
Ichigo Sponsor Support
 Shareholder Program: Shareholder DiscountProgram Shareholder Program: Ichigo J.League
Shareholder Program

Sustainability as a Key Management Priority
 Sustainability Initiatives
Earnings Forecasts
 July 2023/January 2024 Forecast Assumptions
 July 2023 Forecast January 2024 Forecast
Ichigo’s Commitment to ESG Ichigo Sustainability Policy RE100 by 2025 On Track Ichigo ESG – Environmental
 Ichigo ESG – Social
 Ichigo ESG – GovernanceAppendices Portfolio Details
 Loan Details & Shareholder Composition
 Sponsor, Shareholder Alignment© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

6

Cancelled Public Offering Rationale© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

7

Positive Impact From Growing Ichigo Hotel Portfolio
Upside From New Acquisitions of Hotels With Growth Potential– Japanese hotel market is still in growth stage and is anticipated to grow further– Driving dividend growth potential via acquisitions of hotels with earnings growthpotential– NAV growth expected on back of acquisitions of hotels with value-add potential

Drive Shareholder Value Via Growth of Existing Hotels & Newly-Acquired
Hotels With Growth Potential
Drive
Dividend Growth
Increase
Liquidity• Stable growth of existing portfolio, upside from newly-acquired hotels• Expand investor base via increase in market capitalization• Acquire external valuations(Acquire credit rating, entry into global indices)

Improve
Portfolio Quality• Drive further geographic diversification• Provide new value for lodging-focused hotels via acquisition of Ichigo’s
THE KNOT brand hotels

Drive Benefits From
Economies of Scale• Geographic and operator diversification due to increase in portfolio size
contributes to portfolio growth and stability© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

8

January 2023 Results© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

9

January 2023 Highlights
Results
Asset
Acquisition

Hotel Sunshine Utsunomiya

Net Income

JPY 571M

RevPAR(Acquisition Price JPY 2.2B)+JPY 197M (+52.9%) vs. forecast

JPY 5,895 (15 variable rent hotels)+JPY 1,123 (+23.5%) vs. forecast

NOI

JPY 1,353M

FFO

JPY 3,708+JPY 246M (+22.2%) vs. forecast+JPY 1,237 (+50.1%) YOY

Dividend

JPY 2,240

NAV

JPY 132,267+JPY 775 (+52.9%) vs. forecast+JPY 2,303 (+1.8%) vs. previous period

Details• Acquired with cash-on-hand• Driving stability via fixed-rent hotels and geographic
diversification of portfolio• +JPY 228M (+66.6% YOY)
• +JPY 289M (+102.5%) vs. initial forecast announced in
Sep 2022• Occupancy: 88.5% (+7.4% vs. 82.4% forecast)• ADR: JPY 6,658 (+15.0% vs. JPY 5,791 forecast)• Increase in variable rent on back of hotel demand
recovery & leasing of hotels to local governments• +JPY 354M (+35.5%) vs. initial forecast announced in
Sep 2022• FFO up on NOI increase• Operating Revenue increase driving Dividend increase(JPY 967 from leasing of hotels to local governments)• +JPY 1,134 (+102.5%) vs. initial forecast announced in
Sep 2022• Total unrealized gains: JPY 2.1B

FFO (Funds from Operations) = (Net Income + Depreciation + Amortization of Expenses Related to REIT Establishment + Amortization of Share Issuance Expenses+ Loss on Disposal of Fixed Assets + Accrued Asset Disposal Costs +/- Losses/Gains on Sales +/- Extraordinary Losses/Gains) / Number of Shares Outstanding
NAV = BPS + Unrealized Capital Gains per Share© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

10

January 2023 Earnings Breakdown(JPY million)

Jan 2022
ActualJ

Jan 2023
Actual (A)Revised
Forecast(Dec 2022)(B)

vs.
Revised
Forecast(A) - (B)

(Reference)
InitialForecast(Sep 2022)

Operating Revenue

1,125

1,537

1,323

+214

1,205

Variable Rent

147

501

294

+207

180

Fixed Rent

933

983

978

+5

974

Other (Gains on Sales, etc.)

44

51

50

+1

50

653

755

725

+30

690

Repair & Maintenance

34

21

49

-28

42

Depreciation

355

373

374

-1

371

Operating Profit

472

781

597

+184

514

Recurring Profit

274

572

374

+198

283

Net Income

342

571

373

+198

282

Dividend

JPY 1,345

JPY 2,240

JPY 1,465+JPY 775

JPY 1,106

FFO

JPY 2,471

JPY 3,708

–

–

–

NOI

938

1,353

1,107

+246

998

Post-Depreciation NOI

583

980

733

+247

627

Capex

206

194

456

-262

513

51,91554,539–––Operating Expenses

Book Value© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Major Variation Factors (vs. Revised Forecast)

Increase in variable rent +212 (Valie Hiroshima, Shibuya,
Asagaya, Osaka Sakaisuji, Kumamoto, Nagoya, Fukuoka Tenjin,
Sapporo Ekimae, Shinsaibashi, Sapporo Odori, Yokohama,Okayama)
Decrease in variable rent -5 (Matsuyama, Kurashiki, Kyoto Shijo)
Increase in fixed rent (Nagoya)

AM fee +65, Utility expenses +2, Taxes -6, Other SG&A
expenses -2
Decrease due to unused reserve resulting from repairs notconducted at hotels leased as Covid facilities

Borrowing-related expenses -12, Interest expenses -2+52.9% vs. Revised forecast announced on Dec 2022
+102.5% vs. Initial forecast announced on Sep 2022
+66.5% YOY (+JPY 895)

Decrease due to renovations for hotels leased as Covid facilities
moved to the July 2023 fiscal period11Hotel Operating Results

Significant YOY Increases in Revenue, RevPAR, Occupancy, ADR
Variable Rent Hotels (15 Hotels)
Aug 1, 2019
- Jan 31, 2020

Aug 1, 2021
- Jan 31, 2022

Aug 1, 2022
- Jan 31, 2023

Room Revenue (JPY M)

1,330

2,533

+1,203+90.5%

2,613

Total Revenue (JPY M)

1,483

2,684

+1,201+81.0%

3,008

RevPAR (JPY)

3,112

5,895

+2,784+89.5%

6,149

Occupancy

68.8%

88.5%

+19.7%+28.7%

84.4%

ADR (JPY)

4,522

6,658

+2,136+47.2%

7,286

Aug 1, 2021
- Jan 31, 2022

Aug 1, 2022
- Jan 31, 2023

Room Revenue (JPY M)

2,031

3,738

+1,707+84.0%

3,959

Total Revenue (JPY M)

2,140

3,908

+1,768+82.6%

4,144

RevPAR (JPY)

3,109

5,735

+2,626+84.5%

6,084

Occupancy

64.5%

83.7%

+19.2%+29.8%

83.5%

ADR (JPY)

4,820

6,852

+2,032+42.2%

7,282

ChangeYOY

Total Portfolio (23Hotels)
ChangeYOY

Aug 1, 2019
- Jan 31, 2020

Data comparisons for all periods (including Aug 1, 2019 – Jan 31, 2020) use data of hotels currently owned by Ichigo Hotel. Data excludes Capsule Plus
Yokohama and Washington Hotel Plaza Shimonoseki Eki Nishi. Operating results before acquisition are based on data provided by previous owner.

© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

12Hotel Operating Results

YOY Growth in All Regions Via ADR Increase
YOY by Region (Aug 2022– Jan 2023)
RevPAR

Total
Portfolio

Occupancy

Hokkaido

23 Hotels (excludes Capsule Plus Yokohama and Washington
Hotel Plaza Shimonoseki Eki Nishi)

ADR

Kanto/
Koshinetsu

Tokyo

Tokai/
Chubu

Kyoto

Osaka

Kobe

+259%

Chugoku/
Shikoku

Kyushu+129%+87% +89%

+85%

+79%

+75%

+74%

+102%

+101%

+94%
+85%

+64%

+59%

+56%
+47%

+43%

+44%

+29%

+35%

+22%

+17%

+12%

+6%

+56%

+54%

+25%
+24%

+30%

-1%

(JPY)

RevPAR

6,970

7,798

8,785

5,171

3,576

4,644

6,089

5,209

5,762

Occupancy

89.1%

97.0%

92.5%

77.1%

61.2%

83.8%

72.3%

82.5%

99.3%

No. Hotels

3

2

3

4

1

2

1

5

2

% of Total
Portfolio Rental
Income

11%

4%

14%

20%

3%

7%

3%

23%

10%

© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

13

RevPAR, Occupancy, & ADR Recovery on Track
Variable Rent Hotels (Jan 2020 – Jan 2023)
RevPAR

ADR

Occupancy

88.5%
84.7%

84.4%

68.8%
7,286

65.4%
49.7%

6,149

5,132

5,093

Jan 2020

6,658

47.3%

2,531

2,073

Jul 2020

Jan 2021

4,522

4,381

4,383
2,865

3,112

Jul 2021

Jan 2022

5,895

4,348

Jul 2022

Jan 2023(JPY)

RevPAR

6,149

2,531

2,073

2,865

3,112

4,348

5,895

Occupancy

84.4%

49.7%

47.3%

65.4%

68.8%

84.7%

88.5%

ADR

7,286

5,093

4,383

4,381

4,522

5,132

6,658

Data comparisons for all periods use data of hotels currently owned by Ichigo Hotel. Pre-acquisition data for acquired hotels are based on data received
from the previous owners.

© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

14

Organic GrowthDriving Earnings Growth (Operator Change)
Smile Hotel Nagano (former Comfort Hotel Nagano)− Changed operator to K.K. Hospitality Operations
 Operates 70 lodging-focused hotels and resort hotels across Japan Operates 3 Ichigo Hotel-owned hotels− Rebranded and reopened as Smile Hotel Nagano in March 2023
− Driving stability & earnings growth via change from fixed-rent contract to fixed +variable-rent contract

Operating Results (Jun 2022 – Dec 2022)

ADR(right)

RevPAR(right)Occupancy(left)(JPY)

100%

10,000

80%

8,000

60%

6,000

40%

4,000

20%

2,000

0%

0
Jun 2022

Sep 2022

Dec 2022

Closed for renovations due to operator change in January 2023

© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

15

Organic Growth

Ichigo Hotel Value-Add: The OneFive Garden Kurashiki
Completed Full-Scale Renovations to Drive Earnings in Anticipation of
Demand Recovery (February 2023)
The OneFive Garden Kurashiki
Renovations to drive hotel competitiveness thatmeet guest needs
 Full-scale renovations of guest rooms andhallways– ADR Forecast +11.7%
 Added smoking area and new laundrymachines– Adding value to guest experience via
catering to growing guest needs
Outcomes
Capex

JPY 175M

Variable Rent
Increase (Expected)+JPY 30M p.a.

ROI

17.3%

© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

16External Growth

Strengthened Portfolio Via Hotel Acquisition
Hotel Sunshine Utsunomiya(Acquisition Price JPY 2.2B, Acquired on Sep 20, 2022)− Acquired using cash-on-hand− Fixed-rent lease hotel acquisition to drive portfolio earnings stability− A lodging-focused hotel located in Utsunomiya City of Tochigi Prefecture, thelargest city in the North Kanto area; Number of hotel guests increasing in Tochigi− Stable business demand from industrial park and corporate research centers in
the area− Redevelopment at Utsunomiya Station East Exit Retail complex with a convention hall opened in Nov 2022
 Light Rail Transit, a next-generation streetcar system, to start operations in Aug 2023
Number of Guests (2019 vs. 2022)■ 2019 ■ 2022
(thousand)

543,235-16%
453,973
+7%
8,939

9,568
+21%
2,824

Japan

© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Tochigi

3,404

Tochigi(Business Hotels)17External Growth

Portfolio Growth Opportunity Via Ichigo Sponsor Support
Sponsor Owns 18 Hotels Across Japan, Mainly Lodging-Focused Hotels
Sponsor-Owned Hotels By Area
Hokkaido

SapporoChugoku/
Shikoku

Yokohama

Kanto Koshinetsu

Tokyo

Yokohama

Shinjuku

Utsunomiya, Tochigi

KyushuHiroshima

Fukuoka© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Hokuriku/Tokai

Shima, Mie

Ogaki, Gifu

Kinki

Osaka

Area

No.
of Hotels

Book Value atAcquisition(JPY M)

Hokkaido

1

3,900

Kanto
Koshinetsu

3

7,684

Tokyo

2

8,211

Hokuriku/
Tokai

2

1,869

Kinki

2

8,162

Chugoku/
Shikoku

1

3,962

Kyushu7

23,940Total

1857,73118

Shareholder Program

Shareholder Discount Program
Program Established to Express Gratitude to Ichigo Hotel Shareholders andto Support Ichigo Hotel’s Hotel Operators
Special Discount Rates (including hotels not owned by Ichigo Hotel)
Minacia Co., Ltd.
 Hotel Wing International
 Special rate 12% lower than rates
on hotel website
 39 Hotel Wing International Hotels
located across Japan, from
Hokkaido to Kagoshima

K.K. Hospitality Operations
 Smile Hotels
 Special rate 10% lower than rates
on hotel website
 70 Smile Hotel and Hotel Emisia
brand hotels located across Japan,
from Hokkaido to Okinawa© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Greens Co., Ltd.
 Choice Hotels
 Special rate 10% or 13% lower thanrates on hotel website
 73 Comfort Hotel brand hotels
located across Japan, from
Hokkaido to Okinawa

19

Shareholder Program

Ichigo J.League Shareholder Program
Represents Two Firsts for a Shareholder Program in Japan− First Japanese company to include not just its own shareholders, but also theshareholders of the REITs and YieldCo that it manages, in its shareholder program(70,000 shareholders total)− First company to offer shareholders free tickets to every J.League game at every
J.League club

Ichigo is deepening its partnership with the J.League and working tofurther Ichigo’s mission of promoting local community development.
Additional Special Holiday Gift
Gift set featuring food products
selected by Ichigo-sponsoredsoccer club, Tegevajaro Miyazaki

Ichigo J.League Shareholder Program Website Landing Page
© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Products from store at Ichigo
Miyako City’s Miyazaki ThanksMarket20

Sustainability as a Key Management Priority© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

21

Sustainability Initiatives (1)Environmental Certifications
Minimizing Environmental Impact of Ichigo Hotel-Owned Assets− The OneFive Tokyo Shibuya (BELS 4 Stars)− Joined GRESB Real Estate Assessment in 2021
 Awarded 2 Stars in GRESB rating
 Won Green Star designation for 2 consecutive years− Energy efficiency assessments conducted at 1 hotel

Energy Efficiency Improvements− Promoting energy consumption reduction via inspections & installing LED lights
and water-saving systems across all hotels
LED Lights %No. ofHotelsWater-Saving
Systems

No. ofHotels100%

3Installed

9

>50%

11

Not Installed

1125% - 50%

4

TBC

5

<25%

2

Total

25

TBC

5

Total

25

© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

22

Sustainability Initiatives (2)Energy Consumption & Reduction Target Disclosures− Disclosing environmental performance on IHR website− GHG Emission Reduction Targets
 Scope 1 + Scope 2 GHG emission: 50% reduction vs. 2019
 Scope 3 GHG emission: 30% reduction vs. 2019
IHR Website Excerpt

FY19/2
Number of Assets(Including assets acquired/sold)Total Amount［mWh］
Intensity
Energy Consumption［mWh/m2］(Renewable Energy)［mWh］

FY20/2

FY21/222

23

23

44,174.54

25,224.34

28,433.56

0.569

0.536

0.480

(–)

(–)

(272)

12,200.66

7,733.69

8,434.19

12,082.43

7,908.81

8,601.63

16,270.26

11,267.12

12,174.21

16,152.03

11,442.23

12,341.66

Scope 1+2

Greenhouse Gas
Emissions

Location-based［t-CO2］Market-based［t-CO2］
Scope 1+2+3
Location-based［t-CO2］Market-based［t-CO2］© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

23

Sustainability Initiatives (3)Shift to Renewable Energy−−−−

Sourcing 100% renewable energy at 7 hotels as of February 28, 2023
Remaining hotels to be transitioned sequentially by January 2024
Total electricity at 7 transitioned hotels: 2,792,618kWh (FY22/2 Actual)
CO2 reduction: 1,232 tons (using CO2 emission factor of 0.441kg CO2 per kWh)

RE100
A global initiative bringing together businesses committed to 100% renewable electricity, including solar, wind, hydro,
and biomass energy, and accelerating the change towards a zero-carbon society.
Ichigo (2337), Ichigo Hotel’s sponsor, joined RE100 in February 2021 and set a target to source 100% renewableelectricity across its operations, including Ichigo Hotel (3463) and Ichigo Office (8975), by 2025.

© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

24

Earnings Forecasts© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

25

July 2023/January 2024 Forecast Assumptions
Assuming Currently-Owned Hotels & No Rebranding/Re-tenanting
Contracts Leasing All Rooms of 4 Hotels to Local Governments Ending on
March 31, 2023
Occupancy, ADR, & RevPAR Forecasts for 16 Variable Hotels
July 2022
Actual (A)Occupancy

July 2023
Forecast (B)vs. July 2022
(B)/(A)(Reference: Pre-Covid)
July 2019
Actual (C)vs. PreCovid(B)/(C)

84.9%

80.3%

94.6%

86.6%

92.7%

ADR

JPY 5,184

JPY 6,759

130.4%

JPY 8,006

84.4%

RevPAR

JPY 4,402

JPY 5,426

123.3%

JPY 6,932

78.3%

vs. January 2023
(B)/(A)(Reference: Pre-Covid)
July 2019
Actual (C)January 2023
Actual (A)Occupancy

January 2023
Forecast (B)vs. PreCovid(B)/(C)

88.7%

84.6%

95.4%

84.8%

99.8%

ADR

JPY 6,674

JPY 7,281

109.1%

JPY 7,255

100.4%

RevPAR

JPY 5,918

JPY 6,156

104.0%

JPY 6,153

100%* Data of 16 hotels for all fiscal periods except the July 2019 fiscal period, which reflects data for 15 hotels excluding Valie Hotel Hiroshima.
Comfort Hotel Nagano is included as a variable rent hotel due to the change in contract from a fixed rent contract to a variable + fixed rent
contract in March 2023.

© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

26

July 2023 Forecast
Revenue Expected to Exceed Previous Forecast on Back of Strong Demand
Recovery(JPY million)
Jul 2022
Actual (A)Jul 2023
Previous
Forecast(Sep 2022)

Jul 2023
Revised
Forecast (B)Major Factors for Variation(B) - (A)Operating Revenue

1,248

1,326

1,400

+152

Variable Rent

302

305

385

+82

Fixed Rent

900

972

972

+72

Other (Gains on Sales, etc.)

45

48

42

-2

681

723

744

+63

Repair & Maintenance

38

44

46

+7

Depreciation

364

378

378

+13

Operating Profit

566

603

655

+88

Recurring Profit

362

352

402

+40

Net Income

361

351

401

+40

JPY 1,418

JPY 1,380

JPY 1,576+JPY 158

1,052

1,110

1,182

+129

Post-Depreciation NOI

687

732

803

+115

Capex

199

670

749

+550

Operating Expenses

Dividend
NOI© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Increase in variable rent +227 (Sapporo Ekimae, Sapporo Odori, Matsuyama,
Asagaya, Yokohama, Shibuya, Osaka Shinsaibashi, Osaka Sakaisuji,
Fukuoka Tenjin, Nagano)
Decrease in variable rent -144 (Valie Hiroshima, Kumamoto, Nagoya) *Due totermination of contracts leasing all rooms
Increase in fixed rent +82 (Utsunomiya, Osaka Sakaisuji, Kurashiki, Nagoya)Decrease in fixed rent: -10 (Valie Hiroshima, Nagano)
Retail rent: Utsunomiya +6, Kumamoto -6, Asagaya -2

Property tax +10, Insurance/Management outsourcing fee: +5
AM fee +17, SG&A expenses +9+11.1% YOY+14.2% (+JPY 196) vs. previous forecast

Renovation expenses (Kurashiki), Change in hotel operator (Nagano),
Equipment upgrades for hotels leased as Covid facilities (Valie Hiroshima,
Kurashiki, Nagoya)27

January 2024 Forecast
Dividend Forecast to Decrease due to Termination of Contracts Leasing All
Rooms to Local Governments(JPY million)

Jan 2023
Actual (A)Operating Revenue

Jan 2024
Forecast (B)1,537

Major Factors for Variation(B) - (A)

1,559

+22

Variable Rent

501

498

-3

Fixed Rent

983

1,016

+32

Other (Gains on Sales, etc.)

51

44

-7

755

776

+21

Repair & Maintenance

21

44

+23

Depreciation

373

378

+5

Operating Profit

781

782

–

Recurring Profit

572

495

-76

Net Income

571

494

-76

JPY 2,240

JPY 1,938

1,353

1,345

-7

Post-Depreciation NOI

980

967

-13

Capex

194

401

+207

Operating Expenses

Dividend
NOI

Increase in variable rent +170 (Kurashiki, Matsuyama, Osaka Shinsaibashi, Sapporo
Odori, Nagano)
Decrease in variable rent -173 (Valie Hiroshima, Kumamoto, Nagoya) *Due totermination of contracts leasing all rooms
Increase in fixed rent +45 (Kurashiki, Utsunomiya, Osaka Sakaisuji)
Decrease in fixed rent -12 (Nagano)

Property Tax +9, Management outsourcing fee -2
AM fee -18, SG&A expenses +4

Borrowing-related expenses +28, Interest expenses +49-JPY 302 -13.5% YOY© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

28

Ichigo’s Commitment to ESG© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

29

Ichigo Sustainability Policy
Harmony with the Environment
Ichigo actively monitors and minimizes the environmental impact of its business operations.

Energy Conservation, CO2 Reduction, and Recycling
Ichigo seeks to contribute to a low-carbon, low-waste society by reducing energy
consumption, extending the useful life of assets, actively recycling, reducing waste
production and water consumption, and implementing green procurement measures.

Regulatory and Environmental Compliance
Ichigo complies with all environmental laws and regulations and Ichigo’s own independentlyestablished environmental rules. Ichigo also carefully monitors and complies with all applicablechanges in laws and regulations.

Training and AwarenessIchigo promotes understanding of its Sustainability Policy and works to increase sustainability
awareness among all Ichigo employees.

Sustainability Performance Communication and Disclosure
Ichigo communicates its Sustainability Policy and Ichigo’s sustainability initiatives to society atlarge. Ichigo also obtains certifications for its sustainability activities on an ongoing basis.

© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

30

RE100 by 2025 On Track
Ichigo RE100 Progress

FY23/2 Forecast RE100 Transition Impact

CO2 Reduction
Renewable Energy
Ratio

60%

% Reduction

35,815 tons
47.2%

CO2 Emissionsof Cars

× 15,572(+7pts vs. FY22/2 Q4)

Note:% Reduction = Amount of CO2 reduction vs. 75,890 tons (FY20/2 actual)
Annual CO2 emission per car c. 2,300kg (Ministry of Environment)

As of FY23/2 Q3 (November 30, 2022)
Includes all Ichigo, Ichigo Hotel (3463), andIchigo Office (8975) assets© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

31

Ichigo ESG – Environmental
Sustainability-Driven & Climate Positive
Effective Use of Existing Real Estate

Towards a Net Zero Carbon Society

J-REIT Initiatives

Preserve & Improve Real Estate
to End Wasteful Demolition

Community-Based, Productive Use of
Idle Land for Clean Energy

Pro-Active Environmental
Certifications

Ichigo's Sustainable Real Estate businesshas a proven track record of preserving andimproving existing real estate. Ichigo willbuild on this long-standing commitment tosustainability by developing newtechnologies to extend the lives of buildings
and other social infrastructure 100 years
and beyond.

Ichigo will not build power plants that
require the clearing of wooded land or thealtering of the landscape in a way that
increases the risk of floods, landslides, orother water-related disasters, or that face
opposition from local communities.

By obtaining certifications such as GRESB,CASBEE, BELS, and DBJ Green Building,
Ichigo is demonstrating our long-standing
commitment to sustainability via initiatives
that benefit investors, tenants, clients, andother stakeholders.

Ichigo’s Sustainable Real Estate
Preserve & Create Value
Sustainable
Real Estate

Increase
Quality ofTenantServices+

Annual Power Production

217,758,958 kWh
Equivalent to annual
energy consumption of
72,586 households
Annual CO2 Reduction

Increase= Tenant
Satisfaction

Renovate &RepairImprove aesthetics and comfort
Seismic reinforcements
Regulatory compliance
Increase energy efficiency

124,281,000 kg
Equivalent to annual
CO2 emission of
54,035 cars
* July 2021 – June 2022 Actuals

Ichigo Hotel(3463)

Ichigo Office(8975)

Certifications• The OneFive Tokyo
Shibuya(BELS, 4 stars)
GRESB (Since 2021)• Received Green Star
for 2 years in a row.
Evaluated for ESG,
management, &performance
Transition to Renewable
Energy• Completed at 7 hotels• To be transitioned
sequentially at otherhotelsCertifications• 22 (19 assets)• 32.8% of total leasable
office area
GRESB (Since 2016)• Received Green Starfor 6 years in a row.
Evaluated for ESG,
management, &performance
Transition to Renewable
Energy• Completed at all 74
assets by April 2022
(excludes partially-owned
assets)(as of February 28, 2023)© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

32

Ichigo ESG – Social
Contributing to a Sustainable Society
Contributing to Regional Revitalization

Ichigo University

Ichigo works to revitalize local communities
and promote regional economic
development. Ichigo’s model of preserving
and improving existing real estate creates
jobs and supports businesses, and ourclean energy plants also support their hostcommunities by providing new andsustainable sources of income.

Ichigo established Ichigo University in May
2013 to support employees’ continuing
education and personal growth.
Ichigo University courses are taught byemployees and external professionals whoare specialists in their fields and have deep
experience.

Sports Initiatives

As a top partner of the J.League
professional soccer league, we support theleague’s mission to promote community
development. Ichigo supports outstanding
athletes in weightlifting, rifle shooting, andtrack and field.

Average Annual Number of Courses: 30
THE KNOT TOKYO
Shinjuku

Ichigo University Classes

Hotel / Tokyo
https://hotel-theknot.jp/tokyoshinjuku/en

Miyako City
Retail Asset / Miyazaki
www.miyakocity.com

Chisato Kiyoyama(Track and Field)
OnlineIn-Person

Hiromi Miyake(Weightlifting)
Ichigo Sports Site (Japanese only)
www.ichigo.gr.jp/ichigosports© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

33

Ichigo ESG – Governance
Global Best Practice Governance
No Fixed Fee,
Performance FeeOnly Structure

Best Practice GovernanceREIT Shifted to performancelinked fee structure to
support shareholder
value creation on
February 1, 2019
 Pro-active, dynamic
management of Ichigo
Hotel assets on behalfof shareholders

Asset Management Company (AMC) Monitors Asset Management Company• All Ichigo Hotel Directors are Independent
Directors• Active dialogue and effective internal controls
via Board discussions led by REIT Executive
Director• Draw upon expertise of REIT Supervisory
Directors (qualified lawyers & accountants)

 Best Practice• Majority of AMC Directors (3 of 5) are
Independent Directors• Independent asset management team & bestpractice execution on behalf of Ichigo Hotel
REIT within AMC• Compliance and Audit are directly under the
AMC President to monitor and review criticalcompliance matters• Ensure objectivity by including third-party,
independent lawyers and accountants in theInvestment and Risk & Compliance Committees

Only 3 J-REITS (out of 60), including Ichigo Hotel (3463) and Ichigo Office (8975),
have both an Asset Management Company (AMC) board that has a majority of Independent
Directors and whose AMC President does NOT serve as the Executive Director of the REIT
Independence of the Investment Corporation From AMC

Independent Directors at AMC➡ 28 of 60 J-REITs have AMC Presidents serving as➡ Only 3 Asset Management Companies have any

Executive Director of the REIT

Independent Directors

All Ichigo Hotel Directors are Independent

3 of 5 Ichigo Investment Advisors' Directors
are Independent* Based on research as of February 28, 2023

© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

34

Appendix: Portfolio Details© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

35

Portfolio Lease Details
Operator Diversification Driving Earnings Stability
Lease Terms

Fixed Rent

Fixed + Variable Rent

(as of January 31, 2023)

Variable Rent

Total

Form of Contract

Lease

Lease

Lease

Lease

–

Fixed Rent

Yes

Yes

Yes

–

–

Variable Rent–

Fixed Portion of
Revenue Upside

Fixed Portion of Hotel
GOP

Excess Above FixedPortion of Hotel GOP–

Rental Income(Jan 2023 Actual)

JPY 443M(29.8%)

JPY 116M(7.9%)

JPY 887M(59.8%)

Not Available1

JPY 1,485M(100%)

Number of Hotels

9 Hotels

2 Hotels

13 Hotels

1 Hotel25 Hotels

Total AcquisitionPrice

JPY 14.57B(26.6%)

JPY 4.16B(7.6%)

JPY 34.57B(63.1%)

JPY 1.49B(2.7%)

JPY 54.78B(100%)

Hotels• Comfort Hotel Kushiro• Hotel Wing International• Comfort Hotel Hamamatsu
Nagoya• Comfort Hotel Central• Hotel Wing International
International Airport
Kobe Shin Nagata Ekimae• Comfort Hotel Suzuka• Hotel Livemax NihombashiHakozaki• Urbain Hiroshima Executive• Washington Hotel Plaza
Shimonoseki Eki Nishi• Comfort Hotel Nagano• Hotel Sunshine
Utsunomiya2• Nest Hotel Sapporo Ekimae• Nest Hotel Sapporo Odori• Nest Hotel Osaka
Shinsaibashi• Nest Hotel Matsuyama• Nest Hotel Kumamoto• Smile Hotel Tokyo Asagaya• Smile Hotel Kyoto Shijo• Valie Hotel Hiroshima• The OneFive Fukuoka
Tenjin• The OneFive Garden
Kurashiki• The OneFive Tokyo
Shibuya• The OneFive Okayama• The OneFive Osaka
Sakaisuji• Capsule Plus Yokohama–

1 Operator did not provide consent to disclose information
2 Hotel Sunshine Utsunomiya was acquired on September 22, 2022

© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

36

Individual Hotel Summary(as of January 31, 2023)
Hotel
No.

Hotel

Hotel Name

Lease Terms

Location

Leasable Area(m2)

Acquisition
Price(JPY M)

Book Value(JPY M)(A)

Jan 2023 Appraisal

Unrealized
Gains
Cap Rate (%) (JPY M)(B) - (A)

Value
(JPY M)(B)

A-1

Nest Hotel Sapporo Ekimae

Variable + Fixed Rent

Sapporo5,734.93

2,160

2,135

2,590

5.1

+454

A-2

Nest Hotel Sapporo Odori

Variable + Fixed Rent

Sapporo5,638.78

1,450

1,431

1,820

5.0

+388

A-3

Comfort Hotel Kushiro

Fixed Rent

Kushiro, Hokkaido

3,180.58

300

278

365

5.5

+86

B-1

Capsule Plus Yokohama

Variable Rent

Yokohama

1,183.26

1,490

1,555

1,280

4.9

-275

B-2

Comfort Hotel Nagano

Fixed Rent

Nagano1,921.45

670

712

708

4.9

-4

B-3

Hotel Sunshine Utsunomiya

Fixed Rent

Utsunomiya, Tochigi

5,267.16

2,200

2,269

2,410

4.9

+140

C-1

Smile Hotel Tokyo Asagaya

Variable + Fixed Rent

Tokyo

2,721.70

3,910

3,852

4,440

4.3

+587

C-3

Hotel Livemax Nihombashi-Hakozaki

Fixed Rent

Tokyo

853.00

1,360

1,260

1,380

4.6

+119

C-4

The OneFive Tokyo Shibuya

Variable + Fixed Rent

Tokyo

1,470.52

3,700

3,793

4,080

3.5

+286

D-1

Comfort Hotel Hamamatsu

D-2

Hotel Wing International Nagoya

Fixed Rent

Hamamatsu, Shizuoka

4,173.92

1,550

1,386

1,750

5.2

+363

Variable + Fixed Rent

Nagoya5,255.66

2,670

2,686

2,150

4.7

-536

D-3

Comfort Hotel Central International Airport

Fixed Rent

Tokoname, Aichi

11,599.63

5,308

5,185

5,800

4.1

+614

D-4

Comfort Hotel Suzuka

Fixed Rent

Suzuka, Mie

2,186.65

300

275

354

5.1

+78

E-1

Smile Hotel Kyoto Shijo

Variable + Fixed Rent

Kyoto

4,891.84

4,480

4,485

3,570

4.5

-915

E-3

The OneFive Osaka Sakaisuji

Variable + Fixed Rent

Osaka

3,568.32

1,630

1,748

1,230

4.8

-518

E-4

Hotel Wing International Kobe Shin Nagata Ekimae

Variable + Fixed Rent

Kobe

4,540.90

1,490

1,361

1,810

4.7

+448

E-5

Nest Hotel Osaka Shinsaibashi

Variable + Fixed Rent

Osaka

8,057.26

7,600

7,511

5,500

4.4

-2,011

F-1

The OneFive Okayama

Variable + Fixed Rent

Okayama

5,543.70

1,200

1,187

1,760

5.7

+572

F-2

Nest Hotel Matsuyama

Variable + Fixed Rent

Matsuyama, Ehime

6,671.94

1,610

1,621

1,970

5.6

+348

F-3

Urbain Hiroshima Executive

Fixed Rent

Hiroshima

2,756.20

1,800

1,766

1,990

5.4

+223

F-4

The OneFive Garden Kurashiki

Variable + Fixed Rent

Kurashiki, Okayama

3,964.19

1,725

1,829

2,280

5.1

+450

F-5

Valie Hotel Hiroshima

Variable + Fixed Rent

Hiroshima

4,332.50

1,500

1,519

1,670

5.0

+150

F-6

Washington Hotel Plaza Shimonoseki Eki Nishi

Fixed Rent

Shimonoseki, Yamaguch

5,709.35

1,080

1,050

1,200

4.9

+149

G-1

The OneFive Fukuoka Tenjin

Variable + Fixed Rent

Fukuoka

1,910.94

1,380

1,445

2,230

4.3

+784

G-3

Nest Hotel Kumamoto

Variable + Fixed Rent

Kumamoto

6,404.36

2,220

2,187

2,330

5.4

+142

Total (25 Hotels)

109,538.74

54,78354,53956,6674.7+2,127© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

37

January 2023 Fiscal Period Individual Hotel Operating Results(year-on-year)
Hotel
No.

Hotel Name

Lease Terms

Location

No. of
Guest
Rooms

January 2023 (August 2022 - January 2023)
RevPAR (JPY)

Occupancy (%)

A-1

Nest Hotel Sapporo Ekimae

Variable + Fixed Rent

Sapporo

162

7,249

(+82.6%)92.9%(+2.1%)

7,807(+78.9%)252.9(+71.6%)

A-2

Nest Hotel Sapporo Odori

Variable + Fixed Rent

Sapporo

121

7,745

(+109.8%)

91.4%(+10.3%)8,473(+90.2%)

197.1(+97.8%)

A-3

Comfort Hotel Kushiro

Fixed Rent

Kushiro, Hokkaido

126

5,866

(+34.5%)82.1%(+8.8%)

7,143(+23.6%)144.6(+35.3%)

B-2

Comfort Hotel Nagano

Fixed Rent

Nagano

76

6,865

(–)

93.8%

(–)

7,318

(–)

69.9

(–)

B-3

Hotel Sunshine Utsunomiya

Fixed Rent

Utsunomiya, Tochigi

160

8,118

(+217.7%)

98.1%(+75.4%)

8,273(+81.1%)240.3(+164.9%)

C-1

Smile Hotel Tokyo Asagaya

Variable + Fixed Rent

Tokyo

112

8,620

(+60.8%)97.8%(-1.3%)

8,814(+62.9%)179.6(+59.4%)

ADR (JPY)

Revenue (JPY M)

C-4

The OneFive Tokyo Shibuya

Variable + Fixed Rent

Tokyo

72

11,705(+124.0%)

98.9%(+0.1%)

11,832(+123.9%)

156.9(+126.5%)

D-1

Comfort Hotel Hamamatsu

Fixed Rent

Hamamatsu, Shizuoka

196

4,780

(+65.7%)79.2%(+34.7%)6,035(+23.0%)172.4(+65.7%)

D-2

Hotel Wing International Nagoya

Variable + Fixed Rent

Nagoya224

5,396(+182.4%)

98.9%(+119.1%)

5,455(+28.9%)222.4(+155.1%)

D-3

Comfort Hotel Central International Airport

Fixed Rent

Tokoname, Aichi

346

5,291

(+44.2%)

61.9%(+14.5%)8,551(+25.9%)344.0(+43.6%)

D-4

Comfort Hotel Suzuka

Fixed Rent

Suzuka, Mie

105

5,027

(+71.1%)

77.2%(+26.7%)6,513(+35.1%)

98.4(+71.4%)

E-1

Smile Hotel Kyoto Shijo

Variable + Fixed Rent

Kyoto

144

3,576

(+100.9%)

61.2%(+12.1%)

5,847(+79.2%)101.4(+108.9%)

E-3

The OneFive Osaka Sakaisuji

Variable + Fixed Rent

Osaka

130

4,729

(+143.0%)

97.1%(+18.2%)

4,872(+105.5%)

113.6(+191.3%)

E-4

Hotel Wing International Kobe Shin Nagata Ekimae

Variable + Fixed Rent

Kobe

133

6,089

(+58.7%)72.3%(+35.2%)8,417(+17.4%)163.7(+56.8%)

E-5

Nest Hotel Osaka Shinsaibashi

Variable + Fixed Rent

Osaka

302

4,608

(+337.5%)

78.1%(+145.9%)

5,903(+78.0%)263.8(+283.3%)

F-1

The OneFive Okayama

Variable + Fixed Rent

Okayama

208

4,854

(+57.5%)99.1%(+1.6%)

4,896(+55.1%)

191.6(+55.4%)

F-2

Nest Hotel Matsuyama

Variable + Fixed Rent

Matsuyama, Ehime

190

4,245

(+43.3%)70.1%(+8.8%)

6,058(+31.8%)182.5(+38.7%)

F-3

Urbain Hiroshima Executive

Fixed Rent

Hiroshima

171

3,557

(+200.7%)

59.1%(+149.7%)

6,021(+20.5%)111.9(+200.7%)

F-4

The OneFive Garden Kurashiki

Variable + Fixed Rent

Kurashiki, Okayama

107

6,870

(+328.5%)

81.4%(+214.2%)

8,442(+36.4%)121.2(+197.6%)

F-5

Valie Hotel Hiroshima

Variable + Fixed Rent

Hiroshima

171

7,500

(–)

100%

(–)

7,500

(–)

236.9

(-5.1%)G-1

The OneFive Fukuoka Tenjin

Variable + Fixed Rent

Fukuoka

77

7,752(+132.3%)

97.4%(+0.5%)

7,957(+131.2%)

115.6(+118.1%)

G-3

Nest Hotel Kumamoto

Variable + Fixed Rent

Kumamoto

201

5,000

(+87.7%)(+46.0%)5,000(+28.6%)184.9(+70.9%)

Other

100%

455

Variable Rent Hotels

2,523

5,895

(+89.5%)88.5%(+28.7%)6,658(+47.2%)

2,684.1(+81.0%)

Fixed Rent Hotels

1,466

5,426

(+74.8%)74.3%(+31.9%)7,299(+32.5%)

1,224.1(+86.3%)

Total

3,989

5,735

(+84.5%)

83.7%(+29.8%)6,852(+42.2%)

3,908.2(+82.6%)

Operating Results data for Hotel Livemax Nihombashi-Hakozaki, Capsule Plus Yokohama, and Washington Hotel Plaza Shimonoseki Eki Nishi are consolidated under
Other, because the hotel operators did not provide consent to disclose hotel-specific data. Fixed Rent Hotels and Total include Hotel Livemax Nihombashi-Hakozaki’s
operating results.
Pre-acquisition data for acquired hotels are based on data received from the previous owners. Comfort Hotel Nagano is excluded from the above data because the hotel
operators did not give consent to disclose hotel-specific data that would allow for year-on-year comparisons© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

38

Individual Hotel Financials(JPY thousand)
A-1
Total

A-2

A-3

B-3

C-1

C-4

D-1

Nest
Hotel
SapporoEkimaeNest
Hotel
SapporoOdori

ComfortHotel
KushiroHotel
Sunshine
Utsunomiya

Smile
Hotel
Tokyo
AsagayaThe
OneFive
Tokyo
Shibuya

D-3

D-4

E-1

Comfort
ComfortHotel
ComfortHotel
CentralHotel
Hamamatsu International Suzuka
Airport

E-3

E-5

F-1

F-2

The
The
Nest Hotel
OneFive
OneFive
Osaka
Osaka
Shinsaibashi Okayama
Sakaisuji

Smile
Hotel
Kyoto
Shijo

F-4

Nest Hotel
Matsuyama

F-5

G-1

G-3

The
The
OneFive Valie Hotel OneFive
Garden Hiroshima Fukuoka
TenjinKurashiki

Nest Hotel
Kumamoto

Other(A) Rental Income

1,537,201

88,62951,331

18,41946,76994,88376,08655,361

151,441

15,44240,08929,38374,326

79,04036,083

11,260152,287

55,70099,385361,276

Fixed Rent

983,771

32,392

26,083

18,41942,06559,282

44,93255,361

151,441

15,442

34,644

5,826

65,487

72,23335,717

1,549

22,87140,89527,348

231,772

Variable Rent

501,579

56,23625,248––35,60031,154

–

–

–

5,444

23,557

8,839

6,806

362

9,710

128,815

14,80572,03682,960

Other Rent

51,849

–

–

–

4,704

–

–

–

–

–

–

–

–

–

3

–

600

–

–

46,542(B) Rental Expenses

183,642

8,081

10,415

5,669

984

7,799

7,783

4,159

14,553

3,728

7,332

6,002

18,306

5,653

6,184

10,145

5,822

4,889

6,610

49,521

Outsourcing
Fees

18,616

600

600

900

567

2,523

600

600

570

540

600

1,095

1,200

600

720

600

720

600

780

4,200

Insurance

4,162

209

218

115

157

122

75

135

395

68

182

137

339

202

278

136

180

74

249

884

RepairExpenses

21,539

1,803

956

220

–

1,088

1,874

770

631

980

1,173

1,005

1,730

637

1,017

4,937

396

300

366

1,649

Taxes

117,126

5,047

8,215

4,022

–

3,656

4,865

2,384

12,548

1,730

5,018

3,397

14,627

3,796

3,758

4,108

4,157

3,550

4,804

27,436

Other
Expenses

22,198

421

425

410

259

409

367

270

408

408

359

367

408

416

409

362

367

364

409

15,350NOI(A) - (B)

1,353,558

80,54740,916

12,75045,78487,08368,303

51,202

136,888

11,71432,75623,381

56,02073,38729,898

1,115

146,465

50,811

92,774

311,754(D) Depreciation

373,178

16,545

17,974

5,840

3,791

22,754

7,951

15,55835,592

4,230

16,997

10,301

36,007

17,19819,965

13,12821,051

8,755

22,187

77,342

Net Rental
Income(C) - (D)980,380

64,001

22,941

6,909

41,99364,32960,35135,643

101,296

7,484

15,75813,07920,01256,188

9,933-12,013

125,41342,05570,586234,412(C)* Rents for Hotel Wing International Nagoya, Hotel Wing International Kobe Shin Nagata Ekimae, Hotel Livemax Nihombashi-Hakozaki, Capsule Plus Yokohama, Urbain Hiroshima
Executive, Washington Hotel Plaza Shimonoseki Eki Nishi, and Comfort Hotel Nagano as well as retail income of The OneFive Osaka Sakaisuji, Smile Hotel Tokyo Asagaya, and Nest Hotel
Kumamoto are included in Other, as the operators did not provide consent to disclose the data.

© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

39

Fixed/Variable Rent, RevPAR, ADR, & Occupancy Trends
Fixed/Variable Rent

(JPY thousand)Jan 2022
Rent

Ratio

Rent

Jan 2023
Ratio

Rent

Ratio

962,53985.5%

929,692

74.5%

1,015,562

66.1%

Fixed Rent from Operators

933,355

82.9%

900,49772.1%

983,771

64.0%

Other (Rent from Retail Tenants)

29,184

2.6%

29,194

2.3%

31,790

2.1%

Variable Rent

147,81213.1%

302,71924.2%

501,579

32.6%

Other (Utility Income)

15,466

1.4%

15,9601.3%

20,0591.3%

1,125,819

100%

1,248,372

100%

1,537,201

100%

Rent

Fixed

Jul 2022

Total

Operating Results (Feb 2022 – Jan 2023)

RevPAR (right axis)

ADR (right axis)

Occupancy (left axis)

(JPY)

100%

10,000

80%

8,000

60%

6,000

40%

4,000

20%

2,000

0%

0
Feb 2022

Mar 2022

Apr 2022

May 2022

Jun 2022

Jul 2022

Aug 2022

Sep 2022© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Oct 2022

Nov 2022

Dec 2022

Jan 2023

40

Variable Rent Hotel Details
A-1 Nest Hotel Sapporo Ekimae
Location

SapporoAccess5-minute walk from
Sapporo Station on
Sapporo City Metro
Namboku LineOperator

Nest Hotel Japan
Corporation

ADR(right)Operating Results (Feb 2022 – Jan 2023)

RevPAR(right)Occupancy(left)(JPY)

100%

10,000

80%

8,000

60%

6,000

40%

4,000
2,000

Guest Rooms

162

20%

AcquisitionPrice

JPY 2.16B

0%0Feb 2022

May 2022

Aug 2022

Nov 2022

A-2 Nest Hotel Sapporo Odori
Location

SapporoAccess4-minute walk from
Odori Station on
Sapporo City Metro
Namboku LineOperator

Nest Hotel Japan
Corporation

ADR(right)Operating Results (Feb 2022 – Jan 2023)

RevPAR(right)Occupancy(left)

100%(JPY)
12,50080%

10,000

60%

7,500

40%

5,000
2,500

Guest Rooms

121

20%

AcquisitionPrice

JPY 1.45B

0%0Feb 2022© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

May 2022

Aug 2022

Nov 2022

41

Variable Rent Hotel Details
B-1 Capsule Plus Yokohama
Location

Yokohama, Kanagawa

Access6-minute walk from
Yokohama Station on
JR/ Subway LineOperator

The hotel operator did not give consent to disclose data.

nine hours Inc.

Guest Rooms

169

AcquisitionPrice

JPY 1.49B

C-1 Smile Hotel Tokyo Asagaya
Location

Suginami-ku, Tokyo

Access1-minute walk from
Asagaya Station on JR
Chuo/Sobu LineOperator

K.K. Hospitality
Operations

ADR(right)Operating Results (Feb 2022 – Jan 2023)

RevPAR(right)Occupancy(left)(JPY)100%

12,50080%

10,000

60%

7,500

40%

5,000
2,500

Guest Rooms

112

20%

AcquisitionPrice

JPY 3.91B

0%0Feb 2022© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

May 2022

Aug 2022

Nov 2022

42

Variable Rent Hotel Details
C-4 The OneFive Tokyo Shibuya
ADR(right)

RevPAR(right)Occupancy(left)

Location

Shibuya-ku, Tokyo

Operating Results (Feb 2022 – Jan 2023)
100%

(JPY)
20,000Access6-minute walk from
Shibuya Station on JR,
Tokyu, Keio, andTokyo Metro Lines

80%

16,00060%

12,000

40%

8,000

20%

4,000

Operator

Hakata Hotels Inc.

Guest Rooms

72

AcquisitionPrice

JPY 3.7B

0%0Feb 2022

May 2022

Aug 2022

Nov 2022

D-2 Hotel Wing International Nagoya
Location

NagoyaAccess2-minute walk from
Marunouchi Station on
both Nagoya Subway
Network SakuradoriLine and Tsurumai
Line

Operator

Minacia Co., Ltd.

Guest Rooms

224

AcquisitionPrice

JPY 2.67B

ADR(right)Operating Results (Feb 2022 – Jan 2023)

RevPAR(right)Occupancy(left)

100%

(JPY)
7,500

80%

6,000

60%

4,500

40%

3,000

20%

1,500

0%

0
Feb 2022

May 2022

Aug 2022

Nov 2022* Aichi Prefecture has temporarily leased all rooms of Hotel Wing International Nagoya starting on January 28, 2022 (contract ending March 31, 2023).

© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

43

Variable Rent Hotel Details
E-1 Smile Hotel Kyoto Shijo
Location

Kyoto

Access5-minute walk from
Shijo Station on Kyoto
City Subway Karasuma
Line and Karasuma
Station on Hankyu
Kyoto Main LineOperator

K.K. Hospitality
Operations

Guest Rooms

144

AcquisitionPrice

JPY 4.48B

ADR(right)Operating Results (Feb 2022 – Jan 2023)

RevPAR(right)Occupancy(left)(JPY)

100%

10,000

80%

8,000

60%

6,000

40%

4,000

20%

2,000

0%

0
Feb 2022

May 2022

Aug 2022

Nov 2022

E-3 The OneFive Osaka Sakaisuji
Location

Osaka

Access5-minute walk from
Sakaisuji-Hommachi
Station on Osaka
Municipal Subway
Chuo LineADR(right)Operating Results (Feb 2022 – Jan 2023)

RevPAR(right)Occupancy(left)(JPY)

100%

10,000

80%

8,000

60%

6,000

Hakata Hotels Inc.

40%

4,000

Guest Rooms

130

20%

2,000

AcquisitionPrice

JPY 1.63B

0%Operator0
Feb 2022

May 2022

Aug 2022

Nov 2022* Closed in December 2020. Changed operator and rebranded and reopened as The OneFive Osaka Sakaisuji in September 2021.

© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

44

Variable Rent Hotel Details
E-4 Hotel Wing International Kobe Shin Nagata Ekimae
Location

Kobe

Access2-minute walk from
Shin Nagata Station
on JR Kobe Line and
JR Sanyo Honsen LineADR
(right)Operating Results (Feb 2022 – Jan 2023)

RevPAR(right)Occupancy(left)(JPY)

100%

10,000

80%

8,000

60%

6,000

Minacia Co., Ltd.

40%

4,000

Guest Rooms

133

20%

2,000

AcquisitionPrice

JPY 1.49B

0%Operator0
Feb 2022

May 2022

Aug 2022

Nov 2022

E-5 Nest Hotel Osaka Shinsaibashi
Location

Osaka

Access1-minute walk from
Nagahoribashi Station
on Osaka Municipal
Subway Sakaisuji LineOperator

Nest Hotel Japan
Corporation

Guest Rooms

302

AcquisitionPrice

JPY 7.60B

ADR(right)Operating Results (Feb 2022 – Jan 2023)

RevPAR(right)Occupancy(left)

100%(JPY)
10,000

80%

8,000

60%

6,000

40%

4,000

20%

2,000
0

0%
Feb 2022© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

May 2022

Aug 2022

Nov 2022

45

Variable Rent Hotel Details
F-1 The OneFive Okayama
Location

OkayamaAccess15-minute walk from
Okayama Station on
Sanyo Shinkansen,
Sanyo Main Line, Uno
Line

ADR
(right)Operating Results (Feb 2022 – Jan 2023)

RevPAR(right)Occupancy(left)
(JPY)

100%

7,500

80%

6,000

60%

4,500

Hakata Hotels Inc.

40%

3,000

Guest Rooms

208

20%

1,500

AcquisitionPrice

JPY 1.20B

Operator00%
Feb 2022

May 2022

Aug 2022

Nov 2022

F-2 Nest Hotel Matsuyama
Location

Matsuyama, Ehime

Access25-minute drive from
Matsuyama Airport,
3-minute walk from
Katsuyamacho Station
on Iyo Railway Jonan
Line

ADR
(right)Operating Results (Feb 2022 – Jan 2023)

RevPAR(right)Occupancy(left)
(JPY)

100%

7,500

80%

6,000

60%

4,500

Nest Hotel Japan
Corporation

40%

3,000

Guest Rooms

190

20%

1,500

AcquisitionPrice

JPY 1.61B

0%Operator0
Feb 2022© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

May 2022

Aug 2022

Nov 2022

46

Variable Rent Hotel Details
F-4 The OneFive Garden Kurashiki
Location

Kurashiki, Okayama

Access8-minute walk from
Kurashiki Station on
JR Sanyo Main LineADR
(right)100%

Occupancy(left)(JPY)
12,50080%

10,00060%

7,500

Hakata Hotels Inc.

40%

5,000

Guest Rooms

107

20%

2,500

AcquisitionPrice

JPY 1.73B

0%Operator

Operating Results (Feb 2022 – Jan 2023)

RevPAR(right)0
Feb 2022

May 2022

Aug 2022

Nov 2022* Closed for renovations during January and February 2023. Reopened in March 2023.

F-5 Valie Hotel Hiroshima
Location

Hiroshima

Access3-minute walk from
Jogakuin-mae Station
on Hiroden Tram LineADR
(right)Operating Results (Feb 2022 – Jan 2023)

RevPAR(right)Occupancy(left)(JPY)

100%

10,000

80%

8,000

60%

6,000

The Court Co., Ltd.

40%

4,000

Guest Rooms

171

20%

2,000

AcquisitionPrice

JPY 1.50B

0%Operator0
Feb 2022

May 2022

Aug 2022

Nov 2022* Hiroshima Prefecture has temporarily leased all rooms of the Valie Hotel Hiroshima starting on February 8, 2021 (contract ending March 31, 2023).

© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

47

Variable Rent Hotel Details
G-1 The OneFive Fukuoka Tenjin
Location

Fukuoka

Access6-minute walk from
Tenjin Station on
Fukuoka City Subway
Kuko LineADR(right)Operating Results (Feb 2022 – Jan 2023)

RevPAR(right)Occupancy(left)

100%(JPY)
12,50080%

10,00060%

7,500

Hakata Hotels Inc.

40%

5,000

Guest Rooms

77

20%

2,500

AcquisitionPrice

JPY 1.38B

0%Operator0
Feb 2022

May 2022

Aug 2022

Nov 2022

G-3 Nest Hotel Kumamoto
Location

Kumamoto

Access2-minute walk from
Nishikarashimacho
Station on Kumamoto
City Tram LineADR
(right)Operating Results (Feb 2022 – Jan 2023)

RevPAR(right)Occupancy(left)

100%

(JPY)
7,500

80%

6,000

60%

4,500

Nest Hotel Japan
Corporation

40%

3,000

Guest Rooms

201

20%

1,500

AcquisitionPrice

JPY 2.22B

0%Operator0
Feb 2022

May 2022

Aug 2022

Nov 2022* Kumamoto Prefecture has temporarily leased all rooms of the Nest Hotel Kumamoto starting on February 1, 2022 (contract ending March 31, 2023).

© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

48

Fixed Rent Hotel Details
A-3 Comfort Hotel Kushiro

B-2 Comfort Hotel Nagano

Location

Kushiro, Hokkaido

Location

NaganoAccess2-minute walk from
Kushiro Station on JR
Nemuro Main Line

Access3-minute walk from
Nagano Station on JR
Hokuriku Shinkansen

Operator

Greens Co., Ltd.

Operator

Greens Co., Ltd.

Guest Rooms

126

Guest Rooms

76

AcquisitionPrice

JPY 300M

AcquisitionPrice

JPY 670M* Rebranded & reopened as Smile Hotel Nagano on March 1, 2023.

B-3 Hotel Sunshine Utsunomiya
Location

Utsunomiya, Tochigi

C-3 Hotel Livemax Nihombashi-Hakozaki
Location

Chuo-ku, Tokyo

Access5-minute walk from
Utsunomiya Station on
JR Tohoku Main Line,
Tohoku Shinkansen

Access3-minute walk from
Suitengumae Station
on Tokyo Metro
Hanzomon LineOperator

GK S Hotel Operations
Utsunomiya

Operator

Live Max Inc.

Guest Rooms

160

Guest Rooms

48

AcquisitionPrice

JPY 2.2B

AcquisitionPrice

JPY 1.36B© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

49

Fixed Rent Hotel Details
D-1 Comfort Hotel Hamamatsu
Location

Hamamatsu, Shizuoka

Access2-minute walk from
Hamamatsu Station on JR
Tokaido Main Line, Tokaido
Shinkansen

Operator

Greens Co., Ltd.

Guest
Rooms

196

AcquisitionPrice

JPY 1.55B

D-4 Comfort Hotel Suzuka

D-3 Comfort Hotel Central International Airport
Location

Tokoname, Aichi

Access5-minute walk fromCentral International
Airport,3-minute walk fromCentral International
Airport Station on
Meitetsu Airport LineOperator

Greens Co., Ltd.

Guest Rooms

346

AcquisitionPrice

JPY 5.31B

F-3 Urbain Hiroshima Executive
Location

Hiroshima

Access3-minute walk from
Shirako Station on
Kintetsu Nagoya Line

Access6-minute walk from
Hiroshima Station on JR
Sanyo Shinkansen andSanyo Main LineOperator

Greens Co., Ltd.

Operator

Yuki Corporation

LocationSuzuka, Mie

Guest Rooms

105

Guest Rooms

171

AcquisitionPrice

JPY 300M

AcquisitionPrice

JPY 1.80B© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

50

Fixed Rent Hotel Details
F-6 Washington Hotel Plaza Shimonoseki Eki Nishi
Location

Shimonoseki,
Yamaguchi

Access3-minute walk from
Shimonoseki Station
on JR Sanyo MainLine

Operator

Washington HotelCorp.

Guest Rooms

238

AcquisitionPrice

JPY 1.08B© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

51

Appendix: Loan Details & Shareholder Composition© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

52

Stable Financial Base
Outstanding Loan Balance
Jan 31, 2021
AmountJul 31, 2021

Jan 31, 2022

Jul 31, 2022

Jan 31, 2023

JPY 25.47B

JPY 25.47B

JPY 25.47B

JPY 25.47B

JPY 25.47B

Long-Term Loan Ratio

72.5%

72.5%

72.5%

70.7%

63.7%

Fixed Rate Ratio

70.7%

70.7%

70.7%

70.7%

63.7%

Average Interest Rate

0.82%

0.75%

0.77%

0.77%

0.76%

Average Remaining Maturity

2.3 years

1.8 years

1.6 years

1.1 years

1.0 years

LTV (Total Assets Basis)

43.3%

43.2%

42.9%

42.9%

42.6%

* The above does not include investment corporation bonds.

Distribution of Loan Maturities(JPY M)
15,000

Fixed Rate
Floating Rate
Bonds

13,3008,800

12,000

9,000

6,000

3,000

4,950
450
4,500

2,500
500
2,000

4,500
2,220

3,000

370

0
Jul 2023

Jan 2024

Jul 2024

Jan 2025

Jul 2025© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Jan 2026

Jul 2026

Jan 2027

Jul 2027

53

Loan Details
Loan

LenderAmount(JPY M)

Floating/
Fixed

Interest Rate(%)

Borrowing Date

Maturity

Term Loan 4

SMBC, Mizuho, SBI Shinsei, Resona, Fukuoka,
Nishi-Nippon City

4,500

Fixed

0.90750%

August 17, 2016

February 28, 2023

Term Loan 5

SMBC, Mizuho, SBI Shinsei, Resona, Fukuoka,
Nishi-Nippon City

4,500

Term Loan 9

Term Loan 10

Term Loan 11

SMBC, Mizuho, SBI Shinsei, Resona

Lender Composition

1,500

Fixed

Fixed

0.98500%

0.92000%

August 17, 2016

November 30, 2018

August 31, 2023

November 29, 2024

SMBC, Mizuho, SBI Shinsei, Resona, NishiNippon City

2,220

SMBC, Mizuho, SBI Shinsei, Resona, Aozora

1,500

Fixed

0.75450%

April 25, 2019

Resona10%

Fixed

0.73575%

July 19, 2019

Shinsei
12%

SMBC

450

Variable

0.56364%

February 28, 2022

February 28, 2023

Term Loan 18

SMBC, Mizuho, SBI Shinsei, Resona

7,000

Variable

0.56364%

November 30, 2022

November 30, 2023

Term Loan 19

SMBC, Mizuho, SBI Shinsei, Resona, Fukuoka,
Nishi-Nippon City

1,800

Variable

0.57455%

January 31, 2023

January 31, 2024

Fixed

0.65600%

February 28, 2020

February 27, 2026
Mizuho29%

25,470

Average 0.76%

Issue Amount(JPY M)

Interest Rate

Redemption Date

Issuance Period

First Unsecured Investment Corporation Bond
November 25, 2020 (Callable bonds subordinated and limited toqualified institutional investors)

500

2.00%

April 30, 2026

5.4 years

Second Unsecured Investment Corporation
September 30, 2021 Bond (Callable bonds subordinated and limited
to qualified institutional investors)

370

2.00%

March 31, 2027

5.5 years

Total Bonds

870

Average 2.00%

Total Interest-Bearing Liabilities

26,340

Average 0.80%

Name

SMBC
37%

November 29, 2024

Term Loan 17

Issue Date

Bonds
3%

April 30, 2024

2,000

Total Borrowings

Aozora2%

Fukuoka3%
Nishi-Nippon City
4%

SMBC, Mizuho, SBI Shinsei, Resona, Fukuoka,
Nishi-Nippon City

Term Loan 13(as of January 31, 2023)

Fixed vs. Floating

Average Remaining Loan Term 1.0 years

Variable
35.1%
Fixed*
64.9%

Average Remaining Loan Term 1.1 years* Includes interest fixed via swaps© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

54

Shareholder Composition
By Number of Shares Held

Major Shareholders (as of January 31, 2023)
No. OfShares

Name

Share

Foreign Corporations & Individuals
Non-Financial Domestic Corporations

Domestic Financial Institutions
Domestic Individuals

1

The Master Trust Bank of Japan,
Trust Account48,91919.2%

44,388(17.4%)

42,114(16.5%)

38,686(15.2%)

2

Custody Bank of Japan, Ltd.,
Trust Account35,88014.1%

16,609(6.5%)

14,900(5.8%)

13,328(5.2%)

3

Nomura Trust & Banking Co., Ltd.,
Investment Trust Account13,542

5.3%

77,482(30.4%)

87,909(34.5%)

105,692(41.5%)

4

Ichigo Trust Pte. Ltd.

10,9084.3%

5

Ichigo Inc. (Sponsor)

6,500

2.5%

116,495(45.7%)

110,051(43.2%)

6

NOMURA PB NOMINEES LIMITED OMNIBUSMARGIN (CASHPB)

5,434

2.1%

7

Individual Shareholder

3,280

1.3%

Jan 2022(254,974 shares)

Jul 2022(254,974 shares)

8

DFA INTERNATIONAL REAL ESTATESECURITIES PORTFOLIO

3,037

1.2%

9

GOLDMAN SACHS INTERNATIONAL

10 Individual Shareholder
Total(Outstanding Shares)

1.0%

2,330

0.9%

132,403

51.9%

Jan 2023(254,974 shares)

By Number of Shareholders
Jan 31, 2022

2,573

97,268(38.1%)

Jul 31, 2022

Jan 31, 2023

Shareholders Shareholders Shareholders Share
Domestic Individuals

15,456

15,075

13,932

97.5%

Domestic Financial Institutions

34

34

28

0.2%

City banks, trust banks

4

4

3

–

Regional banks

–

–

–

–

Other (including securities companie

30

30

25

0.2%

Non-Financial Domestic Corporations

222

212

185

1.3%

Foreign Corporations & Individuals
Total© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

155

146

146

1.0%

15,867

15,467

14,291100%

55

Appendix: Sponsor, Shareholder Alignment© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

56

Increasing Stability Via Contract Renewals & Rebranding
TimingHotel Name

Lease Terms

ChangesJun 2020

Smile Hotel Tokyo Asagaya

Variable+Fixed
Rent

Lease Renewal

Oct 2020

The OneFive Okayama(formerly Comfort Hotel Okayama)

Fixed Variable+Fixed
Rent

Rebranding• Operator change to Hakata Hotels• Increased fixed rent & added variable rent

Oct 2020

The OneFive Fukuoka Tenjin(formerly Valie Hotel Tenjin)

Variable+Fixed
Rent

Rebranding• Operator change to Hakata Hotels• Revised variable rent

Feb 2021

Capsule Plus Yokohama(formerly Grandpark-Inn Yokohama)Fixed Variable Rent

Rebranding• Added GOP-linked variable rent

Aug 2021

Hotel Wing International Nagoya

Variable+Fixed
Rent

Lease Renewal

Sep 2021

The OneFive Osaka Sakaisuji(formerly Chisun Inn
Osaka Hommachi)

Variable+Fixed
Rent

Rebranding• Operator change to Hakata Hotels• Revised variable rent

Feb 2022

The OneFive Garden Kurashiki(formerly Court Hotel Kurashiki)

Variable+Fixed
Rent

Rebranding• Operator change to Hakata Hotels

Dec 2022

Smile Hotel Nagano(formerly Comfort Hotel Nagano)Fixed Variable+Fixed
Rent

Rebranding• Added variable rent

© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

• Increased fixed rent
• Revised variable rent

• Decreased fixed rent
• Revised variable rent57Hotel Map
Hokkaido
A-1

Kanto/Koshinetsu
A-2

Nest Hotel
Nest Hotel
Sapporo Ekimae Sapporo Odori

Tokyo

A-3

B-1

B-2

ComfortHotel Kushiro

Capsule Plus
Yokohama

Comfort Hotel Hotel Sunshine
NaganoUtsunomiya

Kinki (Kyoto/Osaka/Kobe)
E-1

E-3

B-3

C-1

C-3

C-4

D-1

Smile HotelTokyo Asagaya

Hotel Livemax
NihombashiHakozaki

The OneFive
Tokyo Shibuya

Comfort Hotel
Hamamatsu

D-2

D-3

Hotel Wing
International
NagoyaD-4

Comfort Hotel
Central International
Airport

Comfort Hotel
SuzukaKyushuChugoku/Shikoku
F-1

Hokuriku/Tokai

F-2

F-3

G-1

▶ Sapporo
A-1 A-2

G-3

Variable Rent

▶ Kushiro
A-3

Fixed Rent
Smile Hotel
Kyoto Shijo

The OneFive
Osaka Sakaisuji

The OneFive
Okayama

E-4

E-5

F-4

Nest Hotel
Matsuyama

F-5

Urbain Hiroshima
Executive

The OneFive
Fukuoka Tenjin

Nest Hotel
Kumamoto▶ Nagano B-2

F-6▶ Nagoya D-2▶ Kyoto E-1

Hotel Wing International
Kobe Shin Nagata Ekimae

Nest Hotel Osaka
Shinsaibashi

The OneFive
GardenKurashiki

Valie Hotel
Hiroshima

Washington Hotel
Plaza Shimonoseki
Eki Nishi▶ Osaka E-3 E-5▶ Kurashiki F-4▶ Utsunomiya B-3▶ TokyoC-1 C-3 C-4▶ Yokohama B-1▶ Shimonoseki F-6

25 Hotels
JPY 54.7B▶ Hamamatsu D-1▶ Fukuoka▶ Matsuyama▶ Aichi D-3
G-1
F-2▶ Suzuka D-4▶ Kumamoto▶ Kobe E-4
G-3▶ Okayama F-1▶ Hiroshima F-3 F-5(January 2023 rent-basis)© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

58

Ichigo Hotel’s Sponsor: Ichigo (2337)
Core Businesses: Asset Management, Sustainable Real Estate, Clean Energy‒ Manages Ichigo Hotel (3463), Ichigo Office (8975), and Ichigo Green (9282)‒ Sustainable Real Estate business adds value to existing buildings bydrawing upon its real estate technologies and expertise‒ Deeply committed to CSR and Sustainability
Hiromi Miyake(Weightlifting)
Ichigo(TSE Prime 2337)

Ichigo Hotel (3463)

AssetManagement

Ichigo embraces the Ichigo Ichie philosophy ofsincerity and service, and works to build strong
long-term relationships to support the success of
our clients, shareholders, and all stakeholders.

Ichigo Office (8975)
Ichigo Green (9282)

Ichigo Preserves andImproves Real Estate

The word “Ichigo” comes from the ancientJapanese proverb, Ichigo Ichie, literally meaning“One lifetime, one encounter.” The phrase was
first used by a 16th century master of the tea
ceremony, Sen no Rikyu. He called upon his
disciples to give total focus and sincerity to eachact of the tea ceremony, because that particular
moment will only exist once and must be fully
lived and realized.

Ichigo Investment Advisors

Sustainable
Real Estate

Clean Energy
Other

Ichigo Estate

CentroIchigo Owners

Storage Plus

Ichigo Marche

Ichigo Animation

Miyako City

Hakata Hotels

Ichigo ECO Energy
Ichigo Si© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

59

Synergies Between Ichigo Hotel and Sponsor‒ Strengthen acquisitions through leveraging Ichigo’s sourcing network‒ Increase asset value through Ichigo’s real estate value-add capabilities‒ Drive higher returns for Ichigo Hotel shareholders
Ichigo Hotel (3463)

Buy

Sponsor: Ichigo (2337)

Hotel

Value‐Add

Sell

Make The World
More Sustainable

Buy

Long-Term Asset Management(Grow Earnings for Shareholders)







Grow earnings via collaboration with hotel
operators
Grow earnings via rebranding and improving
lease terms
Grow earnings via optimal cost control

Sell

Value-Add(Increase Asset Value)

Role

Value-add capex
On-going renovation and equipment renewal
Increase hotel attractiveness & competitiveness



Hard





Soft

Buy





Rectify building code issues
Seismic and safety reinforcement
Large-scale structural and equipment renewal
Change hotel operator/brandImprove lease terms
Improve hotel operations
Provide operations support (e.g., Hakata Hotels)

Third-Party Investors© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Sell

60

Acquisitions Leveraging Sponsor Support (Hakata Hotels)– Ichigo-Owned Hakata Hotels Operates 14 Hotels With Focus on the Hakata(Fukuoka) Area
 Company Name to be Changed to OneFive Hotels on May 31, 2023

– Hakata Hotels Deploys PROPERA, an AI-Based Revenue Management System
Developed by Ichigo, to Maximize Earnings and Increase Guest Satisfaction
Name

Hakata Hotels Inc.

Address

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

Representatives

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

Hotels Operated by Hakata Hotels
Hokkaido

Kanto

THE KNOTSAPPOROThe OneFive
Tokyo Shibuya

KansaiThe OneFive
Osaka Sakaisuji

The OneFive
Kyoto Shijo

Chugoku
Paid-In Capital

JPY 100 million (Ichigo’s 100% consolidated subsidiary)

Establishment
Date

March 2019

• Development, operation, lease, and management of retailbuildings, hotels, and restaurants• Leasing and management of real estate
Main Businesses • Design and construction of buildings and interior designs• Consulting services related to retail buildings, retailfacilities, and restaurants• Other businesses relating to the above businesses•

About
PROPERA••AI-based revenue management system developed by
IchigoIncreasing guest satisfaction and maximizing earnings
Started third-party sales

The OneFive
Garden Kurashiki

The OneFive
Okayama

THE KNOTHIROSHIMA

KyushuHOTELIL PALAZZOThe OneFive
Marine Fukuoka© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

The OneFive
Terrace Fukuoka

The OneFive
Fukuoka Tenjin

PLAZA HOTEL
TenjinThe OneFive
Villa Fukuoka

Plaza Hotel
Premier61

Ichigo Hotel Overview
Ichigo Hotel
Name

Ichigo Hotel REIT Investment Corporation

Securities Code3463

Address

1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo

Executive Director

Eriko Ishii

Fiscal Periods

January (August 1 - January 31) and July (February 1 - July 31)

Asset Management Company
Name

Ichigo Investment Advisors Co., Ltd.

President

Hiroshi Iwai

Registration &Membership

Financial Instruments Dealer License (Investment
Management Services, Investment Advisory & Agency
Services, and Type II Financial Instruments Services)
Minister of Finance, Kanto Financial Bureau #318

© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

62

Disclaimer
These materials are for informational purposes only, and do not constitute or form a part of, and should not be construed as,
an offer to sell or buy securities of Ichigo Hotel REIT Investment Corporation (Ichigo Hotel).
These materials may contain forward-looking statements regarding the intent, belief or current expectations of Ichigo Hotelwith respect to financial condition and future results. These statements are based on certain assumptions founded on
currently available information. Accordingly, such statements are subject to risks and uncertainties, and there is no assurance
as to actual financial conditions or future results. Actual results may vary from those indicated in the forward-looking
statements.
In creating these materials, Ichigo Hotel and Ichigo Investment Advisors Co., Ltd. (IIA) have sought to provide accurate
information. However, there can be no assurance given as to the accuracy, certainty, validity or fairness of any suchinformation. The content of these materials is also subject to revision or retraction without prior notice.
This document is a translation. If there is any discrepancy between the Japanese version and the English translation,
the Japanese version shall prevail.

Make The World
More Sustainable

Contact:
Ichigo Hotel IR Desk (3463)
TEL: +81-3-3502-4892
E-mail： ir_hotel@ichigo.gr.jp
www.ichigo-hotel.co.jp/en
Ichigo is Japan’s first zero-carbon listed real estate company. We are taking
responsibility for our environmental footprint by offsetting our carbon emissions andinvesting in low-carbon technologies such as solar energy.

© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

63