Make The World
More Sustainable[Provisional Translation Only]
This English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

June 28, 2021
IssuerIchigo Hotel REIT Investment Corporation (“Ichigo Hotel,” 3463)
1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Osamu Miyashita, Executive Director
www.ichigo-hotel.co.jp/en
Asset Management Company
Ichigo Investment Advisors Co., Ltd.
Representative: Hiroshi Iwai, President
Inquiries: Hidehito Iwasaka, Head of Ichigo Hotel
Tel: +81-3-3502-4892

Earnings Forecast Revision for the July 2021 Fiscal Period
Ichigo Hotel is revising up its July 2021 fiscal period earnings forecast announced inthe March 17, 2021 release “Earnings Forecast Revision for the July 2021 FiscalPeriod.”
1. July 2021 Earnings Forecast Revision

Previous Forecast(A)
New Forecast(B)
Difference(B) - (A)% Change
Reference:
July 2020 Actual(JPY million)
Net
IncomeDividendper Share(JPY)

Operating
Revenue

Operating
ProfitRecurring
Profit

1,037376173

172

678

1,112

437234233915+75+60+60+60+237+7.3%+16.0%+34.8%+35.0%+35.0%

953

371

171

170670

Reference: Net Income per Share: JPY 915
Forecast period-end number of shares outstanding: 254,974 shares
Note: The new forecast is based on the “Preconditions for the July 2021 Earnings
Forecast” on page 3. Actual results may vary due to changes in circumstances, so these
forecasts should not be construed as a guarantee of such results. Ichigo Hotel will make aforecast revision should a material discrepancy emerge between this forecast and results.

12. July 2021 Earnings Forecast Revision Rationale
Although hotel demand is expected to gradually recover on the back of the Covid vaccine
rollout, a full-blown recovery is expected to take time.
Ichigo Hotel is revising up its July 2021 fiscal period earnings forecast (announced onMarch 17, 2021) on the back of greater than expected variable rent at the Valie Hotel
Hiroshima due to Hiroshima Prefecture temporarily leasing all rooms starting in midFebruary.
As a result, the forecast for July 2021 operating revenue, operating profit, net income,and dividend per share are expected to increase to JPY 75 million (+7.3%), JPY 60million (+16.0%), JPY 60 million (+35.0%), and JPY 237 (+35.0%), respectively, versus
the previous forecast.
There is no revision to the January 2022 fiscal period earnings forecast.
Should any further change to the outlook for operating results arise, Ichigo Hotel willpromptly disclose the details.

2Preconditions for the July 2021 Earnings Forecast
Preconditions
PeriodNumber ofHotels

 February 1, 2021 to July 31, 2021 (181 days)
 23 hotels
 The Grandpark-Inn Yokohama had an operator change on February 1,2021 and was rebranded and reopened as the Capsule Plus Yokohama
on March 1, 2021.
 The Chisun Inn Osaka Honmachi had an operator change on March 17,2021 and is scheduled to be rebranded and reopened as The OneFive
Osaka Sakaisuji on September 1, 2021. (The date for rebranding andreopening of The OneFive Osaka Sakaisuji has been changed from July
1, 2021 to September 1, 2021. This change of date has no impact on theforecast operating performance announced in the previous forecast.)
Within operating revenue, rental income is forecast based on current lease
contracts, taking into consideration such factors as hotel and market
conditions.1
Forecast Operating Performance2

3Occupancy
ADR4July 2021 Fiscal Period
59.0%
JPY 4,507

1OperatingRevenue

The forecast rental income assumes operators and tenants will fully pay
their contractual rents without delay or default.
2The 16 variable rent hotels are: Smile Hotel Kyoto Shijo, Nest Hotel
Sapporo Ekimae, Chisun Inn Osaka Honmachi, Nest Hotel Sapporo
Odori, The OneFive Fukuoka Tenjin, Nest Hotel Osaka Shinsaibashi,
Smile Hotel Tokyo Asagaya, Nest Hotel Matsuyama, Court Hotel
Kurashiki, Hotel Wing International Nagoya, Hotel Wing International
Kobe Shin Nagata Ekimae, Nest Hotel Kumamoto, Valie Hotel
Hiroshima, HOTEL EMIT SHIBUYA, The OneFive Okayama, andCapsule Plus Yokohama.
3
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 the period)
4
ADR or Average Daily Rate is calculated with the following formula:
ADR = Total sales from accommodation (excluding restaurant charges
and other service fees) / number of guest rooms occupied during theperiod3Details of the July 2021 Rental Income Forecast by Hotel(JPY million)
Fixed Rent/
Minimum Variable
Guaranteed Rent
Rent

Hotel Name
Smile Hotel Kyoto Shijo
Nest Hotel Sapporo Ekimae
Chisun Inn Osaka Hommachi
Comfort Hotel Hamamatsu
Nest Hotel Sapporo Odori
Valie Hotel Tenjin
Nest Hotel Osaka Shinsaibashi
Comfort Hotel Central International
Airport
Smile Hotel Tokyo Asagaya
Nest Hotel Matsuyama
Comfort Hotel Okayama
Comfort Hotel Kushiro
Comfort Hotel SuzukaCourt Hotel Kurashiki
Nest Hotel Kumamoto
Valie Hotel Hiroshima
HOTEL EMIT SHIBUYAOther1Total
1Total30
31255
271466–––––––

30
31255
27
1466

151–

151

61
36
61
18
15
31
25
17
47
252
947

––––––
4116
––
121

61
36
61
18
15
31
29
134
47
252
1,068

Figures for Hotel Wing International Nagoya, Hotel Wing International
Kobe Shin Nagata Ekimae, Hotel Livemax Nihombashi-Hakozaki,
Capsule Plus Yokohama, Urbain Hiroshima Executive, andWashington Hotel Plaza Shimonoseki Eki Nishi are included in“Other” because the hotel operators did not provide consent to disclose
hotel-specific data.

Retail: JPY 7 million of rental income from retail tenants at Chisun Inn
Osaka Hommachi, Hotel Wing International Kobe Shin Nagata Ekimae,and Smile Hotel Tokyo Asagaya, and from banquet rooms at Nest Hotel
Kumamoto4OperatingExpenses

 Depreciation: JPY 345 million. Depreciation has been calculated using
the straight-line method.
• Property and city planning taxes: JPY 107 million• Building maintenance and repair expenses are based on what Ichigo
Investment Advisors, the asset management company of Ichigo Hotel,
estimates will be necessary for each hotel during the period. However,actual expenses for the period could differ significantly from these
forecast amounts for reasons including the variability of maintenanceand repair expenses, one-time costs due to unexpected building damage,etc.
 Other expenses: JPY 37.8 million for Covid-related hotel operator
support and/or rent reductions.
 SG&A expenses: JPY 3.1 million for engineering report costs and JPY
1.8 million for environmental certification costs.

NonOperatingExpenses

 Interest expenses and other borrowing-related expenses: JPY 202
millionBorrowings

 Total borrowings: JPY 25.97 billion as of July 31, 2021

Number ofShares 254,974 shares issued and outstanding as of today. The forecast assumes
there will be no additional new issuance of shares through July 31,2021.

Dividend The dividend forecast assumes that dividends will comply with thedividend distribution policy stipulated in Ichigo Hotel’s Articles ofIncorporation.
 The dividend is subject to change due to factors such as sales of
portfolio assets, changes in rental income associated with operator
turnover, the occurrence of unexpected maintenance and repair costs,and fluctuations in interest rates.

Dividend in
Excess ofEarnings

 Ichigo Hotel does not plan on paying any Dividend in Excess ofEarnings.

Other This forecast assumes that there are no material revisions to laws andregulations, the tax system, accounting standards, listing rules of theTokyo Stock Exchange, and rules of the Investment Trusts Association,
Japan, and no material changes in the state of the economy and realestate market conditions.
 Given ongoing Covid uncertainty, these earnings forecasts are subject tochange.

5