Japan Hotel REIT Investment Corporation (TSE: 8985)

Supplementary Material
for Press Releases dated September 15, 2021

Japan Hotel REIT Investment Corporation
Japan Hotel REIT Advisors Co., Ltd.
ジャパン・ホテル・リート投資法人
https://www.jhrth.co.jp/en/

ジャパン・ホテル・リート・アドバイザーズ株式会社
September 15, 2021
https://www.jhrth.co.jp/

Table of Contents

Ⅰ. Highlight of Revenue Forecast for the Full Fiscal Yearand Sale of Property
1.

Summary of Forecast for the Full Year 2021
and Sale of Property

Appendix3

Ⅱ. Revenue Forecast for the Full Fiscal Year
1.

Revenue Forecast for the Full Year Ending December 2021

5

Ⅲ. Status of Hotel Operations
1.

Performance of The 24 Hotels with Variable Rent, etc.

82.

Sale of Property

10

Ⅳ. Takeaways
1.

Takeaways

12

1

Information on Properties

1.

Rent Structures

14

2.

Portfolio Diversification

15

3.

Capital Expenditure and Depreciation

16

4.

Five HMJ Hotels — Highlights

17

5.

Portfolio Map

18

I. Highlight of Revenue Forecast for the Full Fiscal Yearand Sale of Property

1. Summary of Forecast for the Full Year 2021 and Sale of Property
 JHR decided to sell a property and expects DPU to be JPY120 for FY12/2021.
 Due to the long-term impact of COVID-19, the pace of recovery in hotel operations is expected to be moderate.
On the other hand, JHR expects to secure a profit by property sale on favorable conditions.

Summary of Forecast for the Full Year 2021

Status of Hotel Operations(Unit: JPY MM)
Initial Forecast

Full Year 2021

Variance(*1)(forecast this time)

Operating Revenue

13,92012,808(8.0%)

Real Estate
Operating Revenue

13,9209,643(30.7%)

6,345

6,411

1.0%

Other Income

932

907

(2.7%)

Variable Rent

6,642

2,324

(65.0%)

Gain on Sale ofProperties, etc.

ー

3,165

ー

877

207

(76.4%)

330

329(0.3%)

270

120(55.6%)

Fixed Rent

Net Income
Use of Negative
Goodwill
Dividend per Unit
(JPY)

 Full year performance of The 24 Hotels with Variable Rent, etc.(*2)

2021

2019

2020

Occupancy

86.0%

37.4%

35.7%

RevPAR

JPY14,178

JPY4,993

JPY4,261

Variance of
RevPAR

vs 2019(64.8%)(69.9%)

vs 2020－(14.7%)GOP

JPY20,871MM

JPY1,654MM

JPY1,046MM(forecast this time)

Sale of Property
ibis Tokyo Shinjuku
Scheduled Date of Sale

December 15, 2021

Sale Price

JPY11,300MM

Gain on Sale

JPY3,165MM

Appraisal Value(*3)

JPY9,900MM(*1) The initial forecast refers to the operating forecast for the fiscal year ending December 2021 announced in the Financial Report for the Fiscal Year Ended December 31, 2020 (January 1, 2020–
December 31, 2020) dated February 25, 2021. The same shall apply hereinafter.
(*2) The 24 Hotels with Variable Rent, etc. refers to 24 hotels: 14 hotels, which are 5 hotels of Kobe Meriken Park Oriental Hotel, Oriental Hotel tokyo bay, Namba Oriental Hotel, Hotel Nikko Alivila,
Oriental Hotel Hiroshima ("The Five HMJ Hotels"), plus Okinawa Marriott Resort & Spa, Sheraton Grand Hiroshima Hotel (main facility of ACTIVE-INTER 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("The HMJ Group Hotels"), plus 4 hotels of the b ikebukuro, the b hachioji, the b hakata, and the b suidobashi ("The Ishin Group Hotels") and 6 hotels of ibis Tokyo Shinjuku, ibis Styles Kyoto
Station, ibis Styles Sapporo, Mercure Sapporo, Mercure Okinawa Naha, Mercure Yokosuka ("The Accor Group Hotels"). The same shall apply hereinafter.
(*3) As of the end of June 2021.

3

Ⅱ. Revenue Forecast for the Full Fiscal Year

1. Revenue Forecast for the Full Year Ending December 2021

Properties

Comparison with the Previous Result and the Forecast This Time
FY12/2020(21st Period)

FY12/2021(22nd Period)

Results(A)

Forecast This Time(B)

Profit and Loss

(B)–(A)

Sale of
Sale of
Existing
Property in
Property in
the Previous
This Period(*2) Properties(*1)
PeriodVariance

42

41

(1)

–

–

–

–

Acquisition Price

370,031363,542(6,489)––(7,243)753

Real Estate Operating
Revenue

13,83812,808(1,030)(7.4%)(3,390)

3,161

(801)

10,495

9,643

(851)

(8.1%)

(232)

(3)

(616)

Variance with the Previous Result(Existing Properties)
Fixed Rent
• The HMJ Group Hotels(*3)(JPY794MM)• The Ishin Group Hotels (the b)(JPY7MM)• Change in lessees/rebranding(*4)(JPY172MM)• Chisun Hotel Kamata(*5)(JPY93MM)• Other tenants(JPY8MM)
total(JPY1,076MM)

Fixed Rent, etc.

72.8%

7,640

66.5%

6,411

(1,228)(16.1%)

(149)

(3)

(1,076)

Other Income

8.5%

892

9.4%

907

15

1.7%

(16)

–

32

Variable Rent

18.7%

1,963

24.1%

2,324

361

18.4%

(66)

–

427

3,343

3,165

(178)

(5.3%)(3,158)

3,165

(184)

6,547

5,433

(1,114)(17.0%)

(200)

0

(914)

1.8%

1.5%

(0.3%)NOI after Depreciation

1,778

648

(1,129)NOI Yield after Depreciation

0.5%

0.2%

(0.3%)

Operating Income

3,176

1,917

(1,258)(39.6%)

Ordinary Profit

1,398

208

(1,189)(85.1%)＜Amount to be used in FY12/2021＞

130

–

(130)

1,527

207

(1,319)(86.4%)• 50-year amortization amount on
negative goodwill

JPY262MM

305

329

23

7.8%

• Cope with loss on retirement of
noncurrent assets

JPY10MM

1,829

536

(1,293)(70.7%)• Amortization of trademark rights

JPY56MM

Number of Units Issued(Unit)

4,462,347

4,467,006

4,659

–

Dividend per Unit (JPY)

410

120

(290)

(70.7%)

Gain on Sale ofProperties, etc.
NOI
NOI Yield

Extraordinary Income
Net Income
Use of Negative Goodwill
Dividend

Variance with the Previous Result

No. of Properties

Operating Revenue

(*1)
(*2)
(*3)
(*4)
(*5)

(Unit: JPY MM)

Total Dividends(63.5%)

(187)

0

(942)

Variable Rent
• The HMJ Group Hotels

JPY365MM• The Accor Group Hotels

JPY14MM• The Ishin Group Hotels (the b)

JPY45MM• Chisun Hotel Kamata

JPY14MM• Other hotels, etc.

(JPY12MM)
total

JPY427MM

Negative Goodwill

total amount (plan) JPY329MM
Balance of negative goodwill after theend of December 2021 (forecast)
JPY9,982MM

Stating the impact by the sale of Sotetsu Fresa Inn Shimbashi-Karasumoriguchi sold as of July 1, 2020.
Stating the impact by the sale of ibis Tokyo Shinjuku to be sold as of December 15, 2021. The same shall apply hereinafter.
HMJ refers to Hotel Management Japan Co., Ltd. or its subsidiaries. The same shall apply hereinafter.
Stating Hotel Oriental Express Fukuoka Tenjin (formerly, Hotel Ascent Fukuoka) and Oriental Hotel Universal City (formerly, Hotel Keihan Universal City) which were rebranded and changed the lessees to HMJ.
Chisun Hotel Kamata was rebranded and changed its name from Hotel Vista Kamata Tokyo dated January 1, 2021. The rent structure was changed to variable rent from fixed rent + revenue sharing.

5

1. Revenue Forecast for the Full Year Ending December 2021 (cont.)
Comparison with the Initial Forecast and the Forecast This Time

Properties(Unit: JPY MM)

FY12/2021(22nd Period)

FY12/2021(22nd Period)

Initial Forecast(A)

Forecast This Time(B)

Profit and Loss

(B)–(A)

Variance

Sale of
Property inThis Period

Existing
Properties

No. of Properties

42

41

(1)

–

–

–

Acquisition Price

370,031363,542(6,489)–(7,243)753

Operating Revenue

13,92012,808(1,112)(8.0%)

3,161(4,273)

13,920

9,643(4,277)(30.7%)(3)(4,273)

Real Estate Operating
Revenue

Dividend

Variance with Initial Forecast

Fixed Rent, etc.

45.6%

6,345

66.5%

6,411

66

1.0%

(3)

69

Other Income

6.7%

932

9.4%

907

(25)

(2.7%)–(25)

Variable Rent

47.7%

6,642

24.1%

2,324

(4,317)(65.0%)–(4,317)

–

3,165

3,165

–

3,165

–

9,455

5,433

(4,022)(42.5%)

0(4,022)

2.6%

1.5%

(1.1%)NOI after Depreciation

4,628

648

(3,979)(86.0%)

0(3,979)NOI Yield after Depreciation

1.3%

0.2%

(1.1%)

Operating Income

2,715

1,917

(797)

(29.4%)

Ordinary Profit

879

208

(670)

(76.3%)Net Income

877

207

(670)

(76.4%)

Use of Negative Goodwill

330

329

0

(0.3%)

Gain on Sale ofProperties, etc.
NOI
NOI Yield

1,204

536

(668)

(55.5%)

Number of Units Issued(Unit)

4,462,347

4,467,006

4,659

–

Dividend per Unit (JPY)

270

120

(150)

(55.6%)

Total Dividends

6

Variance with Initial Forecast(Existing Properties)
Fixed Rent
• Other tenants

JPY69MM
total

JPY69MM

Variable Rent
• The HMJ Group Hotel(JPY3,954MM)• The Accor Group Hotels(JPY645MM)• The Ishin Group Hotels (the b)

JPY227MM• Other hotels, etc.

JPY54MM
total(JPY4,317MM)

Ⅲ. Status of Hotel Operations

1. Performance of The 24 Hotels with Variable Rent, etc.
Performance and Forecast of Major Indicators
Occupancy (right axis)

ADR (left axis)

RevPAR (left axis)

Total of The 24 Hotels with Variable Rent, etc.

(JPY)
20,000First Half
15,691

15,00010,0005,000
0RevPAR

13,34813,362

4,536

10,846
3,320

17,26312,36814,993
4,868

5,000
0

RevPAR

5,445

12,733

16,492

13,357

11,28914,178

5,188

100%

Full Year

4,993

14,947
11,931
8,105

34.0%

30.6%

39.4%

86.9%

40.8%

40.7%

68.8%

86.0%

37.4%

35.7%

54.2%

2019
Result2020
Result2021
Result2021
InitialForecast

2019
Result2020
Result2021
Forecast
This Time

2021
InitialForecast

2019
Result2020
Result2021
Forecast
This Time

2021
InitialForecast

vs 2019(66.0%)(75.1%)(63.5%)(63.7%)(65.4%)(24.7%)(64.8%)(69.9%)(42.8%)

vs 2020ー(26.8%)+7.3%

ー(4.7%)+107.3%ー(14.7%)+62.3%

17,587First Half

15,222

15,005

13,048

19,635
14,906
17,263

5,045

3,618

5,428

Second Half

16,814

6,460

15,325

19,59018,635

13,37916,143

6,137

Full Year
16,081

5,757

17,9790%100%

14,402
9,436

50%

4,888

85.3%

33.1%

27.7%

36.4%

87.9%

38.4%

40.0%

68.3%

86.6%

35.8%

33.9%

52.5%

2019
Result2020
Result2021
Result2021
InitialForecast

2019
Result2020
Result2021
Forecast
This Time

2021
InitialForecast

2019
Result2020
Result2021
Forecast
This Time

2021
InitialForecast

vs 2019(66.4%)(75.9%)(63.8%)(62.6%)(64.5%)(22.5%)(64.3%)(69.7%)(41.5%)

vs 2020ー(28.3%)+7.6%

ー(5.0%)+107.1%ー(15.1%)+63.9%

8

50%

4,261

85.1%

15,00010,00016,39813,354

The HMJ Group Hotels(JPY)
20,000

Second Half0%

1. Performance of The 24 Hotels with Variable Rent, etc. (cont.)
Performance and Forecast of GOP
Total of The 24 Hotels with Variable Rent, etc.
(JPY MM)

20,871

20,00015,000
7,323

10,000
5,000
0

2019
vs 2019
vs 2020

GOP

1,654

1,046

2020

2021
(Forecast This Time)

2021(Initial Forecast)(92.1%)－(95.0%)(36.7%)(64.9%)+342.9%The HMJ Group Hotels(JPY MM)

20,00017,11615,00010,000

6,393

5,000
0

2019
GOP

vs 2019
vs 2020

1,326

934

2020

2021
(Forecast This Time)

2021(Initial Forecast)(92.3%)－(94.5%)(29.5%)(62.6%)+382.2%9

2. Sale of Property
Sale of Property

Use of Gain on Sale Plan to sale a large, limited-service hotel in Tokyo, which has a large amountof unrealized gain
 Plan to sale the property at a price substantially excess of the appraisal value Aim to improve ready liquidity and to increase dividend Control LTV with prepayment of the existing loans
Miscellaneous
Expenses, JPY330MM

ibis Tokyo Shinjuku
Scheduled Date of Sale

December 15, 2021

Sale Price

JPY11,300MM

Acquisition Price

JPY7,243MM

Book Value(*1)

JPY7,805MM

Gain on Sale

JPY3,165MM

Appraisal Value(*2)

JPY9,900MM

Sale Price
JPY11,300MM
Book Value
JPY7,805MM(*1) Estimated book value as of December 15, 2021. Rounded down to JPY1MM.
(*2) As of the end of June 2021.

Gain on Sale
JPY3,165MM

Improve revenue
available for dividends

Prepayment ofexisting loans
JPY4,000MM

Lower LTV

Cash and
Deposits
JPY3,805MM

Before

After

42.7%

(as of the end of June 2021)

41.8% (as of the end of
December 2021 (forecast))
Improve ready liquidity
Free cash JPY21.0Bn

After

Change in Asset Size(*3)+7.0%(JPY MM)

No. of Properties
No. of Acquisition
Acquisition Price
No. of Dispositions
Sale Price
Unrealized Gains

122,285+21.4%

130,883+9.1%

158,902+30.2%

173,429+27.1%

225,723+11.4%

286,801(3.2%)

319,474+21.1%

309,370(1.2%)

374,508(1.8%)

370,031363,542

FY12/2021
April 2012
FY12/2012 FY12/2013 FY12/2014 FY12/2015 FY12/2016 FY12/2017 FY12/2018 FY12/2019 FY12/2020(22nd Period(merger) (13th Period) (14th Period) (15th Period) (16th Period) (17th Period) (18th Period) (19th Period) (20th Period) (21st Period)
forecast)(*4)
28

28
2
JPY10.8Bn
2
JPY0.8Bn
JPY2.2Bn28
2JPY32.6Bn
2
JPY2.6Bn
JPY9.8Bn30
3
JPY15.7Bn
1
JPY0.7Bn
JPY34.8Bn

36
9
JPY57.0Bn
3
JPY4.8Bn
JPY78.7Bn

41
5
JPY61.0Bn

44
3
JPY32.6Bn

JPY113.8Bn

JPY122.1Bn

41

3
JPY12.1Bn
JPY130.7Bn

43
2
JPY65.1Bn

JPY151.5Bn

42

1
JPY8.0Bn
JPY126.5Bn

41
1
JPY0.8Bn
1
JPY11.3Bn
JPY125.9Bn

Aim for Successive Growth Improvement of the quality of JHR's portfolio and successive
external growth through strategic asset replacement(*3) Asset size is based on the aggregate acquisition price of the properties at the end of each fiscal period. The same shall apply hereinafter.
(*4) Stating the figures after the sale of ibis Tokyo Shinjuku. The number of properties and acquisition price states the acquisition of part of site of Oriental Hotel Universal City (July 2021). As Oriental
Hotel Universal City is the existing property owned by JHR, the total number of properties is not added. Unrealized gains are calculated based on the appraisal value at the end of June 2021 for 41
properties excluding ibis Tokyo Shinjuku.

10Ⅳ. Takeaways

1. Takeaways
Pre
COVID-19
2019

With
COVID-19

2020● Development and distribution ofeffective vaccine and medicine

2021

2022

Post
COVID-192023

ChangeSense ofSocial &values/economic

Lifestyleactivity

Leisuredemand(quantity andquality)

FinancialmarketSociety

Guests'Investment

needs

opportunity

Hotel market

Respond flexibly to change
Aim to become a front-runneradopting to
the "post COVID-19" period

Survivethe "with COVID-19" period
12Appendix
Information on Properties

1. Rent Structures
Stability

Upside(FY12/2021 forecast)Rent Structure(*1)

Fixed rent

Fixed rent +Revenue sharing

Fixed rent + Variable rent

Variable rentManagement contract

Type of Contract

Lease contract

Lease contract

Lease contract

Lease contract

Management contract

Fixed

○

○

○

–

–

–

Variable–

A certain percentage of sales
exceeding the threshold

A certain percentage of
hotel GOP

A certain percentage of hotelrevenue or hotel GOP

Hotel GOP–

JPY2,344MM(24.4%)

JPY2,385MM(24.8%)

JPY3,478MM(36.2%)

JPY1,057MM(11.0%)

JPY344MM(3.6%)

JPY9,609MM(100.0%)

Fixed Rent,
etc.(*3) (%)

JPY2,344MM(24.4%)

JPY2,385MM(24.8%)

JPY1,769MM(18.4%)JPY441MM(4.6%)

JPY344MM(3.6%)

JPY7,284MM(75.8%)

Variable Rent
(%)

–

0
(0%)

JPY1,709MM(17.8%)JPY615MM(6.4%)

0(0%)

JPY2,324MM(24.2%)

Involvement inHotel Operation

Low

Low

High

High

High

–

CAPEX Paid by JHR

1) Renewal of building andfacilities

1) Renewal of building andfacilities
2) Fixtures and equipment
3) Strategic investment

1) Renewal of building andfacilities
2) Fixtures and equipment
3) Strategic investment–

No. of Properties

10

3

20

4

4

41

Acquisition Price(%)

JPY32,375MM(8.9%)

JPY31,904MM(8.8%)

JPY257,630MM(70.9%)

JPY19,235MM(5.3%)

JPY22,397MM(6.2%)

JPY363,542MM(100.0%)

The Beach Tower Okinawa

Hilton Tokyo Bay

The HMJ Group Hotels(*4)

Hilton Nagoya

ibis Styles Kyoto Station

Hotel Francs

Smile Hotel
Nihombashi Mitsukoshimae

The Ishin Group Hotels

Mercure Yokosuka

ibis Styles Sapporo

Oriental Hotel Universal City

Chisun Hotel Kamata

Mercure Sapporo

Hotel Oriental Express
Fukuoka Tenjin

Chisun Inn Kamata

Mercure Okinawa Naha

Type of
Rent(breakdown)

Real Estate
Operating Revenue(*2)(%)

HotelsCANDEO HOTELS
UENO-KOEN
and other hotels

(*1)
(*2)
(*3)
(*4)

1) Renewal of building and
1) Renewal of building
facilities
and facilities
2) Fixtures and equipment<3) Strategic investment>
3) Strategic investment

Comfort Hotel Tokyo
Higashi Nihombashi

Total

Rent structure is categorized according to the type of rent stated in lease contracts for hotels of each asset owned by JHR.
Revenue from trademark rights is excluded from the real estate operating revenue in the table above.
Fixed rent, etc. includes fixed rent and utility income based on lease contract of non-hotel portion (offices, signage, car parks, retail shops, etc.) of asset owned by JHR.
The rent structure for The HMJ Group Hotels is only variable rent in 2021.

14–

2. Portfolio Diversification
 Widely diversified and high-quality portfolio Appeal to inbound visitors by international brands
By Area and Rent(*1)
(F)

(V)
(F)

4.6%

(V)

1.8% 0.0%

4.2%

By Hotel Brand(*2)(F)

Dormy Inn, etc.

12.5%

(Kyoritsu Maintenance)
4%

(V)
4.0%
Hokkaido
Chubu 1.8%
8.9%

(F)
7.3%

10%

Oriental Hotel(HMJ)

the b 3%
ibis/Mercure

(V)
Tokyo

Others24%(Accor)

7.0%

7%

19.5%

Hotel Nikko

Chugoku

8%

11.3%

(V)
1.2%

International
Brand:
51%

Kyushu(excluding Okinawa)(F)

11.9% Kansai

10.6%

Kanto

(excluding Osaka)
Okinawa 2.1%
6.4%
Osaka

(V)
1.0%

(excluding
Tokyo)
30.8%

Holiday Inn
Hilton32%

By Grade(*2)

(F)
27.2%

Sheraton
5%

(IHG)
7%

By Hotel Type(*2)

Economy

7.5%

3%

(F)

5.3%
(V)

Luxury(F)

0.0%2.1% (V)

2.8%

(F)

(V)

Mid-price

4.8%

3.6%

41%

Fixed Rent, etc. (F)75.8%

Variable Rent (V)24.2%

Resort21%

Limitedservice
30%

Uppermiddle

Full-service

34%

48%

(*1) Based on the real estate operating revenue (excluding trademark rights) based on the rent in revenue forecast for the fiscal year ending December 2021.
(*2) Based on the estimate of the acquisition price as of the end of the fiscal year ending December 2021.

15

22%

3. Capital Expenditure and Depreciation
 Prioritize securing ready liquidity by restraining mainly CAPEX Ⅲ, taking into account the conditions of the hotel market
Clarification of CAPEX

CAPEX ⅠCAPEX Ⅱ(JPY MM)

5,000

CAPEX Ⅲ

capital investment related to renewal of buildings, facilities, and equipment which is
required to maintain proper values of properties
capital investment for fixtures, furniture and equipment that are not directly related to building
structures or facilities but necessary for operating hotels
strategic capital investment for renewals of guest rooms, banquet rooms, restaurant
and others in order to maintain or to improve the competitiveness of the hotels

Depreciation

4,091
4,000

3,000

3,725

2,898
469

2,000

475

4,761

4,557
6,766
3,619 Oriental Hotel Fukuoka
3,056
476

4,772

393

3,147

999
1,690

781

3,522

Hakata Station

Cost for large-scalerenovation works

1,263

1,665
100
237

1,000

1,954

1,798

2,259

2,226
1,456

1,328

0

Asset Size
(JPY MM)

319,474309,370

374,508

370,031363,542

FY12/2017

FY12/2018

FY12/2019

FY12/2020

FY12/2021(*)(forecast)(*) Capital expenditures for the fiscal year ending December 2021 (forecast) include expenses for rebranding of Hotel Oriental Express Fukuoka Tenjin (JPY365MM) and Oriental Hotel
Universal City (JPY283MM) (total JPY648MM).

16

4. Five HMJ Hotels — Highlights
Change in GOP and GOP ratio(JPY MM)
10,000

6,296

6,000
4,000

27.0%

GOP ratio

5,136
24.3%

5,696

5,645

5,158

26.6%

25.5%

26.5%

6,155
28.0%

6,302
28.3%

6,941

29.9%

7,591

7,765

8,033

31.8%

32.8%

34.2%

50%
7,793

33.7%

40%

20%
7.3%

2,000
0

CY2008

CY200930%

CY2010CY2011CY2012

CY2013

CY2014

CY2015

CY2016

CY2017

CY2018CY2019

5.3%

695

431

CY2020CY2021(forecast)(forecast)

GOP ratio

GOP

8,000

GOP

10%
0%

Change in KPI

20,00016,00012,000
8,000
4,000

ADR

RevPAR

OCC

91.0% 89.9% 90.5%
86.9% 87.7% 88.4%
82.7% 86.1%
80.4%
77.9% 77.8%
76.7%
21,06773.8%
22,197
19,212
17,551
17,297
16,895
20,153 19,856 19,954
15,846 16,200
15,98017,970 18,463 17,197
14,02919,066
17,807 18,060
16,843
15,245
14,88613,999 14,367
40.0%
12,696 12,845 12,160 13,400
35.2%
6,756
CY2007

CY2008

CY2009CY2010CY2011CY2012

CY2013

CY2014

CY2015

CY2016

CY2017

CY2018CY2019CY20204,934
CY2021(forecast)(forecast)

100%
80%
60%
40%

OCC

ADR・RevPAR(JPY)
24,00020%
0%(*) Changes have been made to include service fees in ADR and RevPAR from May 2019 onward to eliminate variations in ADR and RevPAR between hotels due to existence of service fees.

175. Portfolio Map
 Portfolio consisting of competitive hotels in areas with strong leisure lodging demand Selectively invest in locations with high growth potential of leisure demand such as Strategic Investment Areas
Total Assets(as of the end of December 2021 (forecast))

Strategic Investment Areas
Existing properties

JPY363.5Bn

1

2

3

4

5

6

7

8

Kobe Meriken Park
Oriental Hotel

Oriental Hoteltokyo bay

Namba
Oriental Hotel

Oriental Hotel
Hiroshima

Hotel Nikko Alivila

The BeachTower Okinawa

HakoneSetsugetsuka

Dormy Inn
Kumamoto

13

Limited-service hotel

No. of Hotels

Full-service hotel

22 23

Resort hotel

41 Hotels

Hokkaido Area

9

10

11

12

14

15

16

17

the b
suidobashi

dormy inn・
global cabin
Asakusa

Hakata Nakasu
Washington
Hotel PlazaNara Washington R&B Hotel
Hotel Plaza
Ueno-hirokoji

Comfort HotelTokyo Higashi
Nihombashi

Smile Hotel
Nihombashi
Mitsukoshimae

Toyoko Inn
Hakata-guchi
EkimaeOriental Hotel
Universal City

18

19

20

21

22

23

24

25

Chisun Inn
KamataChisun Hotel
KamataHilton Tokyo Bay

ibis Styles
Kyoto Station

ibis Styles
SapporoMercureSapporoMercureOkinawa Naha

the b ikebukuro

No. of Guest Rooms

11,279 Rooms
Tokyo & Bay Area(*1)

Osaka/Kyoto Area(*2)

26

21

3 17 34 40

37 38

7

Fukuoka
Area
11 16

29

27 33 35

2 20

36
12 39

8
4 31

1

9
30

13 32

10
14
15

6

24

26

27

28

29

30

31

32

the b hachioji

the b hakata

Hotel Francs

MercureYokosuka

Okinawa Marriott
Resort & Spa

ACTIVE-INTER CITYHIROSHIMA (Sheraton
Grand Hiroshima Hotel)

33

東京23区
25

5

28

41

CANDEOHOTELS
UENO-KOEN

Oriental Hotel
Fukuoka
Hakata Station

34

35

36

37

38

39

40

41

Holiday Inn
Osaka Namba

Hotel Oriental
Express
Fukuoka Tenjin

Hilton Nagoya

Hilton Tokyo
Narita Airport

International
Garden Hotel
NaritaHotel Nikko Nara

Hotel Oriental
Express Osaka
Shinsaibashi

Hilton Tokyo Odaiba

18 19

Okinawa Area(*1) Bay Area includes the coastal area of Tokyo Bay in Kanagawa and Chiba prefectures.
(*2) Osaka/Kyoto Area refers to Osaka and Kyoto prefectures.

18

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including purchase of investment units, investment unit subscription rights, or investment corporation bonds of Japan Hotel REIT Investment Corporation("JHR") or any other particular products. If any discrepancy is identified between this translation and the Japanese original, the Japanese original shall prevail.
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forecasts are made based on JHR's present and future business strategies and assumptions relating to the political and economic circumstances surrounding
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please ask financial institutions for the amount, upper limit, and calculation methods of such fees and other charges.
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For details, please refer to the Articles of Incorporation, Securities Registration Statement, Annual Securities Report and Extraordinary Report, etc. of JHR.
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Japan Hotel REIT Advisors Co., Ltd.
Financial Instruments Trading Company
Director-General of Kanto Local Finance Bureau No. 334
Member of The Investment Trust Association, Japan
Member of The Japan Investment Advisers Association

19