Ichigo Preserves and Improves Real Estate[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 26, 2018
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/english
Asset Management Company
Ichigo Investment Advisors Co., Ltd.
Representative: Wataru Orii, President
Inquiries: Hiroto Tajitsu, Head of Administration
Tel: +81-3-3502-4892

Ichigo Hotel Operating Results – February 2018
Portfolio Revenue, RevPAR, Occupancy, and ADR
Total (20 Hotels – excludes Grandpark-Inn Yokohama)February2018 (A)Revenue(JPY million)
RevPAR (JPY)(Previous)
February2017 (B)

Difference(A) - (B)YOY
Change

757.1

711.9

+45.2

+6.3%

7,721

7,227+493+6.8%

Occupancy (%)

89.8

89.7

+0.2+0.2%

ADR (JPY)

8,596

8,062+535+6.6%

Variable Rent Hotels (12 Hotels)
February2018 (A)Revenue(JPY million)
RevPAR (JPY)(Previous)
February2017 (B)

Difference(A) - (B)YOY
Change

533.0

488.4

+44.6+9.1%

9,207

8,410+796+9.5%

Occupancy (%)

94.4

94.7

-0.3

-0.3%

ADR (JPY)

9,749

8,878+871

+9.8%

1

Fixed Rent Hotels (8 Hotels – excludes Grandpark-Inn Yokohama)February2018 (A)Revenue(JPY million)
RevPAR (JPY)(Previous)
February2017 (B)

Difference(A) - (B)YOY
Change

224.1

223.5

+0.6+0.3%

5,676

5,606+71+1.3%

Occupancy (%)

83.5

82.7+0.8+0.9%

ADR (JPY)

6,802

6,779

+22+0.3%

Revenue, RevPAR, Occupancy, and ADR by Hotel
Variable Rent Hotels (12 Hotels)
February2018 (A)Nest Hotel
SapporoEkimaeNest Hotel
Sapporo Odori

Smile HotelTokyo Asagaya

Smile Hotel
Asakusa

Hotel Wing
InternationalNagoya

Smile Hotel
Kyoto Shijo(Previous)
February2017 (B)

Difference(A) - (B)YOY
ChangeRevenue(JPY million)
RevPAR (JPY)

72.6

57.7

+14.9+25.8%

14,105

11,233+2,872+25.6%

Occupancy (%)

97.7

96.5+1.2+1.3%

ADR (JPY)
Revenue(JPY million)
RevPAR (JPY)

14,436

11,641+2,794+24.0%

63.0

47.4+15.6+32.9%

17,413

13,125+4,288+32.7%

Occupancy (%)

98.1

94.2

+3.8+4.0%

ADR (JPY)
Revenue(JPY million)
RevPAR (JPY)

17,75913,926+3,833+27.5%

31.4

28.7+2.7+9.4%

9,754

9,011

+744+8.3%

Occupancy (%)

99.1

98.9

+0.3

+0.3%

ADR (JPY)
Revenue(JPY million)
RevPAR (JPY)

9,842

9,115+727

+8.0%

19.2

19.8-0.6-2.9%

6,937

7,058-121-1.7%

Occupancy (%)

94.6

96.3

-1.7

-1.7%

ADR (JPY)
Revenue(JPY million)
RevPAR (JPY)

7,332

7,331+2–

38.7

41.4

-2.7

-6.5%

5,594

5,990

-397

-6.6%

Occupancy (%)

88.6

92.5

-3.9

-4.2%

ADR (JPY)
Revenue(JPY million)
RevPAR (JPY)

6,313

6,474

-160

-2.5%

29.7

30.2

-0.5

-1.7%

7,009

7,283

-274

-3.8%

Occupancy (%)

97.0

100.1

-3.1-3.1%

ADR (JPY)

7,223

7,274-51-0.7%

2

February
2018 (A)Hotel Vista
Premio Kyoto

Chisun Inn
Osaka
Hommachi

Nest Hotel
Osaka
Shinsaibashi

Nest Hotel
Matsuyama

Valie HotelTenjin

Nest HotelNaha(Previous)
February2017 (B)

Difference(A) - (B)YOY
ChangeRevenue(JPY million)
RevPAR (JPY)

23.0

24.9

-1.9

-7.5%

8,922

9,979

-1,057-10.6%

Occupancy (%)

87.8

89.5

-1.7

-1.9%

ADR (JPY)
Revenue(JPY million)
RevPAR (JPY)

10,167

11,150

-983

-8.8%

26.1

26.6

-0.5

-1.7%

7,183

7,308

-126-1.7%

Occupancy (%)

93.9

94.1-0.2-0.2%

ADR (JPY)
Revenue(JPY million)
RevPAR (JPY)

7,647

7,763

-116

-1.5%

87.5

79.8+7.7+9.7%

9,650

8,532+1,118+13.1%

Occupancy (%)

98.0

99.2

-1.1

-1.1%

ADR (JPY)
Revenue(JPY million)
RevPAR (JPY)

9,843

8,603

+1,240+14.4%

40.3

39.0+1.3+3.2%

5,318

5,028+290+5.8%

Occupancy (%)

85.7

84.2+1.4+1.7%

ADR (JPY)
Revenue(JPY million)
RevPAR (JPY)

6,207

5,970+238+4.0%

23.0

21.3+1.6+7.7%

9,874

9,103+772+8.5%

Occupancy (%)

96.9

91.8+5.1+5.6%

ADR (JPY)
Revenue(JPY million)
RevPAR (JPY)

10,186

9,912+274+2.8%

78.4

71.5

+6.9+9.7%

10,8099,908+901+9.1%

Occupancy (%)

96.5

96.2+0.4+0.4%

ADR (JPY)

11,197

10,303+894+8.7%

3

Fixed Rent Hotels (8 Hotels)
February2018 (A)

Comfort Hotel
KushiroComfort Hotel
Hamamatsu

Comfort Hotel
CentralInternational
Airport

Comfort Hotel
SuzukaComfort Hotel
OkayamaUrbainHiroshima
ExecutiveOther(Hotel Suave
Kobe Asuta& Hotel
Livemax
NihombashiHakozaki)(Previous)
February2017 (B)

Difference(A) - (B)YOY
ChangeRevenue(JPY million)
RevPAR (JPY)

12.2

12.7

-0.4

-3.2%

3,472

3,338+134+4.0%

Occupancy (%)

69.6

73.4

-3.7

-5.1%

ADR (JPY)
Revenue(JPY million)
RevPAR (JPY)

4,987

4,550+437

+9.6%

25.4

25.6

-0.2

-0.9%

4,622

4,662-40-0.9%

Occupancy (%)

80.2

74.8

+5.4

+7.2%

ADR (JPY)
Revenue(JPY million)
RevPAR (JPY)

5,766

6,232-466-7.5%90.6

88.7+1.9+2.2%

8,425

8,204+221+2.7%

Occupancy (%)

90.9

89.9+1.0+1.1%

ADR (JPY)
Revenue(JPY million)
RevPAR (JPY)

9,266

9,125+141+1.5%

12.2

11.1+1.0+9.2%

4,069

3,665+404+11.0%

Occupancy (%)

75.2

71.5+3.7+5.2%

ADR (JPY)
Revenue(JPY million)
RevPAR (JPY)

5,409

5,126+282+5.5%

32.0

30.2+1.8+6.0%

5,290

4,863+426+8.8%

Occupancy (%)

89.9

86.6+3.3+3.8%

ADR (JPY)
Revenue(JPY million)
RevPAR (JPY)

5,884

5,615

+268+4.8%

Occupancy (%)

86.0

ADR (JPY)
Revenue(JPY million)
RevPAR (JPY)

6,659
22.4

24.9

-2.5

-10.0%

4,427

4,917-490-10.0%

Occupancy (%)

77.3

78.9

-1.6

-2.0%

ADR (JPY)

5,724

6,230-506

-8.1%

27.4
5,728

4

Notes:1. The above data are as provided by the hotel operators or as calculated by Ichigo
Investment Advisors based on information provided by the hotel operators. The data
have not been audited and thus its accuracy cannot be guaranteed and may not matchdata disclosed in future releases.
2. Revenue is revenue from accommodations and related services only. Rent from retailtenants at Hotel Vista Premio Kyoto, Chisun Inn Osaka Hommachi, and Smile HotelTokyo Asagaya is not included.
3. RevPAR (Revenue Per Available Room) is calculated with the following formula:
RevPAR = Total Revenue from accommodations (excluding restaurant charges andother service fees) / number of available guest rooms.
4. Occupancy is calculated with the following formula:
Occupancy = Total number of guest rooms occupied during the period /(total number of guest rooms * number of days hotel was in operation during theperiod)
Occupancy may exceed 100% in the following cases: 1) a guest had pre-paid for aguest room but checked out early, allowing the guest room to be occupied by adifferent guest; or 2) a guest room is occupied for less than one day by different
guests.
5. ADR (Average Daily Rate) is calculated with the following formula:
ADR = Total revenue from accommodations (excluding restaurant charges and otherservice fees) / number of guest rooms occupied during the period.
6. Data for Urbain Hiroshima Executive prior to its acquisition in August 2017 is notdisclosed, because the hotel operator did not provide consent to disclose
hotel-specific data.
7. Data for two hotels, Hotel Suave Kobe Asuta and Hotel Livemax NihombashiHakozaki, are consolidated under Other because the hotel operators did not provide
consent to disclose hotel-specific data.
8. While Hotel Suave Kobe Asuta’s lease contract includes a variable rent clause, it has
never been triggered. Because Ichigo Hotel does not anticipate receiving variable rentat this hotel, it has been classified as a fixed rent hotel.
9. Grandpark-Inn Yokohama is excluded from the above data because the hotel operator
did not give consent to disclose hotel-specific data that would allow for year-on-yearcomparisons.

Explanation of Changes
Revenue, RevPAR, Occupancy, and ADR increased year-on-year for the total portfolio,
due to year-on-year Revenue, RevPAR, and ADR increases at both variable rent hotels,
which are a more significant contributor to Ichigo’s Hotel’s earnings, and fixed renthotels.
Driving these results were year-on-year Revenue, RevPAR, and ADR increases at Nest
Hotel Sapporo Ekimae, Nest Hotel Sapporo Odori, and Nest Hotel Osaka Shinsaibashi
on the back of successfully capturing the growth in inbound demand resulting from
Chinese New Year shifting to February this year (last year it was in January). Smile
Hotel Tokyo Asagaya also saw year-on-year increases in Revenue, RevPAR,Occupancy, and ADR following renovations and improvements for guests in December
2017.

5Value-Add Actions
At Smile Hotel Kyoto Shijo, Ichigo Hotel completed renovations to capture growing
leisure demand. Specifically, four larger double rooms (30m2) on the 3rd to 6th floors
with wasted space and poor layouts for guests were split into smaller double rooms,
resulting in a net increase of four two-guest guestrooms. The renovations are expected
to contribute to a 1.8X revenue increase for these guestrooms (forecast ROI 15.7%).
Ichigo Hotel will continue to work closely with its hotel operator partners to carry out
value-add capex on behalf of guests and drive higher earnings.
BeforeAfter6