Ichigo Hotel (3463)

Ichigo Hotel July 2024 Fiscal Period
Corporate Presentation
September 17, 2024

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

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.

July 2024 Results
Earnings Forecasts
 July 2024 Highlights
 January 2025 Forecast
 July 2024 Earnings Breakdown July 2025 Forecast Hotel Operating Results: Continued Hotel Earnings
Ichigo’s Commitment to ESG
Growth Ichigo Sustainability Policy
 Hotel Operating Results: RevPAR Growth in All
 Ichigo Climate Positive: CO2 Reduction >Regions – Demand Recovery in Kyoto & Tokai
Emissions Growth Strategy: Growing Earnings via
 RE100: Continued Renewable Energy Transition
Re-Tenanting & Improved Contract Terms
 Ichigo SBT (Science Based Targets) Certification
 Environmental Initiatives: Sustainability Initiatives
 Ichigo ESG – Environmental
 Shareholder Program: Shareholder Discount Ichigo ESG – Social
Program Ichigo ESG – Governance Shareholder Program: Ichigo J.League
Appendices
Shareholder Program Portfolio Details
Sustainability as a Key Management Priority
 Loan Details & Shareholder Composition
 Higher-Than-Appraisal Value Sale of Value-Add
 Sponsor, Portfolio Map, & Others
Hotel Driving Revenue Increase at Lease Contract-End Driving Shareholder Value via Ichigo Sponsor
Pipeline Shareholder-Oriented AM Fee Structure© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

5

July 2024 Results© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

6

July 2024 Highlights
Results
Net Income

RevPAR

JPY 995M+JPY 273M (+37.9%) YOY

JPY 8,259 (21 variable rent hotels)+JPY 761 (+10.1%) YOY

JPY 2,155M

Details• +JPY 72M (+7.8%) vs. Mar 2024 forecast• Achieved 8 consecutive periods of earnings growth• Driven by earnings increase from newly-acquired 5 hotels• Occupancy: 88.4% (+0.3% vs. 88.1% forecast)• ADR: JPY 9,344 (+3.3% vs. JPY 9,047 forecast)• YOY RevPAR growth across all areas+JPY 566M (+35.6%) YOY• Record NOI since listing• +JPY 68M (+3.3% vs. Mar 2024 forecast)• Newly transitioned 7 hotels to renewableenergy• Reduced water usage via installing
water-saving equipment• Purchased non-fossil certificates for hotels that have notcompleted renewable energy transition to continue using
100% renewable energy• 24% water reduction per person at 10 hotels wherewater-saving equipment was installed

Dividend

JPY 3,040• +JPY 220 (+7.8%) vs. Mar 2024 forecast• +JPY 38 (+0.7%) vs. Jul 2024 revised forecast• Driven by profit growth from newly-acquired hotels
exceeding existing hotels’ profit growth & dilution

NAV

JPY 146,944• Record NAV since listing• Appraisal value increase on NOI, NCF increase• Unrealized Gains: JPY 8.4B, +JPY 1.4B (+20.5%) YOY

NOI
Environmental
Initiatives+JPY 209 (+7.4%) YOY+JPY 4,383 (+3.1%) YOY

NAV = BPS + Unrealized Capital Gains per Share© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

7

July 2024 Earnings Breakdown
Dividend Exceeds Initial & Revised Forecasts due to Strong AssetManagement PerformanceJul 2023
ActualJul 2024
Actual (A)Previous
Forecast(Mar 2024)(B)

vs. Forecast(A) - (B)

(Reference)
Revised
Forecast(Jul 2024)

Operating Revenue

1,796

2,440

2,394

+45

2,433

Variable Rent

756

1,011

977

+34

1,008

Fixed Rent

992

1,284

1,278

+6

1,284

Other (Gains on Sales, etc.)

47

143

138

+4

139

862

1,126

1,148

-22

1,131

Repair & Maintenance

31

26

45

-19

26

Depreciation

387

466

484

-18

469

Operating Profit

933

1,313

1,246

+67

1,302

Recurring Profit

722

996

924

+72

984

Net Income

721

995

923

+72

983

Dividend

JPY 2,831

JPY 3,040

JPY 2,820+JPY 220

JPY 3,002

FFO

JPY 4,382

JPY 4,475

–

–

–

NOI

1,589

2,155

2,087

+68

2,148

Post-Depreciation NOI

1,201

1,689

1,603

+86

1,678

551

257

415

-157

–

Book Value

54,704

69,320–––No. Of Outstanding Shares

254,974

327,489

327,489–

Operating Expenses

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

(JPY million)

Major Variation Factors (vs. Initial Forecast)

Increase in Operating Revenue +45
Increase in variable rent +122
(11 of 22 hotels including Nagoya, Ise Shima, Hiroshima, Kyoto)
Decrease in variable rent -88(Okayama, Osaka Sakaisuji, Kumamoto)
Increase in retail rent +1
Increase +7(KNOT YOKOHAMA, KNOT SAPPORO, Kumamoto)
Decrease -6 (Utsunomiya) Line item reclassifiation to fixed rent
Increase in utility and other income +3
Decrease in Operating Expenses -4
Decrease in repair expenses -19
Decrease in depreciation -18
Decrease in administrative expenses -15
Fixed Asset tax -5
Other expenses -2
Increase in AM fee +34
Increase in utility expenses +4
Increase in Non-Operating Profit +2
BELS certification subsidy
Decrease in Non-Operating Expenses -2
Decrease in interest expenses -1
Decrease in borrowing-related expenses -1
Reference
Dividend+7.8% vs. March 2024 forecast+7.3% (+JPY 209) YOY

8

Hotel Operating Results

Continued Hotel Earnings Growth
YOY Growth Across All KPIs on Demand Exceeding Drop-Out From End ofDomestic Travel Subsidy Program
Variable Rent Hotels (21 Hotels)
Feb 1, 2023
- Jul 31, 2023

Feb 1, 2024
- Jul 31, 2024

ChangeYOY

Room Revenue (JPY M)

4,273

4,775

+503

+11.8%

Total Revenue (JPY M)

4,698

5,234

+536

+11.4%

RevPAR (JPY)

7,498

8,259

+761

+10.1%

Occupancy

83.7%

88.4%

+4.7%

+5.6%

ADR (JPY)

8,957

9,344

+387

+4.3%

Total Portfolio (28 Hotels)
Feb 1, 2023
- Jul 31, 2023

Feb 1, 2024
- Jul 31, 2024

ChangeYOY

Room Revenue (JPY M)

5,454

6,117

+662

+12.1%

Total Revenue (JPY M)

5,942

6,610

+668

+11.2%

RevPAR (JPY)

7,006

7,755

+749

+10.7%

Occupancy

81.1%

85.3%

+4.2%

+5.2%

ADR (JPY)

8,643

9,094

+451

+5.2%

Data excludes Capsule Plus Yokohama and Washington Hotel Plaza Shimonoseki Eki Nishi. Operating results before acquisition are based on data provided byprevious owner.
© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

9Hotel Operating Results

RevPAR Growth in All Regions – Demand Recovery in Kyoto & TokaiYOY by Region (Feb 2024 – Jul 2024)
RevPAR
Occupancy

Total
Portfolio

Hokkaido

Kanto/
Koshinetsu

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

ADR

Tokyo

Tokai/
Chubu

Kyoto

Osaka

Kobe

Chugoku/
Shikoku

Kyushu

+41%
+23%

+21%
+16%

+16%
+13%

+11%

+10%

+5%
+5%

+13%

+12%
+10%

+1%

-2%

+3%

+10% +10%
+8%

+8%

+6%
+3%

+12%

+5%

+4%

+2%

-3%

0%

-4%

-3%

(JPY)

RevPAR

10,7738,553

14,149

6,543

7,506

7,815

6,779

5,707

6,968

Occupancy

91.5%

84.5%

96.0%

78.1%

78.3%

87.2%

82.9%

88.4%

84.9%

No. Hotels

4

3

3

6

1

3

1

5

2

% of Total
Portfolio Rental
Income

17%

11%

13%

17%

3%

13%

2%

14%

6%

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.

10Growth Strategy

Growing Earnings via Re-Tenanting & Improved Contract Terms
Rental Income Growth on Back of Re-Tenanting After End of Lease
Contracts & Improving Lease Contract Terms at Renewals
 Hotel Wing International Nagoya– Achieved +6% rental income increase in Jul 2024 vs. Jul 2019 due to changing
variable rent percentage & reducing fixed rent, in tandem with inbound tourist andbusiness demand recovery*Excludes Jan 2022 to Mar 2023 when all rooms were leased to the local government

 Smile Hotel Kyoto Shijo– Driving stability via Mar 2024 lease contract renewal with +17% fixed rental income
increase Capsule Plus Yokohama– Achieved +38% rental income increase in Jul 2024 vs. before lease contract renewal
due to rebranding, changing to variable rent contract from fixed rent contract &maximizing capturing domestic leisure demand© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

11

Environmental Initiatives

Sustainability Initiatives– Achieved 100% renewable energy transition at all hotels
 Completed renewable energy transition at 16 hotels
 Purchased non-fossil certificates for other hotels
 Ongoing discussions with tenants of the 14 hotels that purchased non-fossil
certificates to transition to renewable energy– Completed installment of water-saving equipment at 10 hotels; Achieved
24% water reduction per person
Renewable Energy Transition (as of August 31, 2024)
Completed
Renewable
EnergyTransition

Annual Energy Transition/Carbon Offset Forecast

CO2 Reduction c. 7,723 tons
Calculated as 0.429kg CO2 per kWh

33%
Purchased Non-Fossil
Certificates Tracking
Ichigo Power Plants

Achieved
100%

67%

Non-fossil certificates certify the environmental value of non-fossil electricity. FIT non-fossil certificates with tracking includes information on the
power plant generating non-fossil electricity, including electricity type and plant location.
© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

12

Shareholder Program

Shareholder Discount Program
Providing Hotel Discounts to Ichigo Hotel Shareholders in Cooperation With
Hotel Operators
Minacia Co., Ltd.

K.K. Hospitality Operations

Hotel Wing International

Smile Hotels, THE KNOT Special rate 12% lower than rates on hotel website

 Special rate 10% lower than rates on hotel website

Applicable Ichigo Hotel-Owned Hotels
・Hotel Wing International Nagoya
・Hotel Wing International Kobe Shin Nagata Ekimae

Greens Co., Ltd.

Applicable Ichigo Hotel-Owned Hotels
・Smile Hotel Kyoto Shijo ・Smile Hotel Tokyo Asagaya
・Smile Hotel Nagano ・HOTEL THE KNOT YOKOHAMA

Core Global Management Co., Ltd.

Choice Hotels

Quintessa Hotels

 Special rate 10% or 13% lower than rates on hotel website

 Special rate 10% lower than rates on hotel website

Applicable Ichigo Hotel-Owned Hotels
・Comfort Hotel Hamamatsu
・Comfort Hotel Central International Airport
・Comfort Hotel Kushiro ・Comfort Hotel Suzuka
・Comfort Hotel Osaka Shinsaibashi (Ichigo Shinsaibashi Building)Applicable Ichigo Hotel-Owned Hotels
・Quintessa Hotel Ise Shima
・Quintessa Hotel Ogaki*Only applicable to hotels owned by Ichigo Hotel

Hotels operated by Minacia, Hospitality Operations, and Greens include hotels not owned by Ichigo Hotel© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

13

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 solar power producer that it manages, in its
shareholder program (83,000 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 developments.
Tickets to 2023 J.League Awards(December 5, 2023)

Invited shareholders to attend the2023 J.League Awards, whichcelebrated the achievements ofplayers, coaches, clubs, and referees
during the 2023 season

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

©J.LEAGUE

14

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

15

Higher-Than-Appraisal Value Sale of Value-Add Hotel
Gains on Sale (c. JPY 2.18B) to be Distributed as Jan 2025 Dividend− Sold at 1.7X Appraisal Value, 2.2X Book Value− Sale proceeds to be used for growth investments
Nest Hotel Sapporo Ekimae

Hotel Name

Sale Price

JPY 4,700M

Book Value

JPY 2,130M

Appraisal Value

JPY 2,730M

Gains on Sale

JPY 2,181M (Expected)

Sale Date

December 25, 2024

Buyer

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

16

Driving Revenue Increase at Lease Contract-End
Seeking Value-Add Initiatives to Maximize Shareholder Value Such as
Rebranding, Large-Scale Renovations, and Re-examination of Contract
Terms
6 Hotels Ending Lease Contract by Jan 2026 Fiscal Period-End

Lease Contract
End

Hotel Name

RegionLease Terms

Jan 2025

Valie Hotel Hiroshima

Chugoku

Variable Rent

Jul 2025

Nest Hotel Sapporo Odori

Hokkaido

Variable Rent

Jul 2025

Smile Hotel Asagaya

Tokyo

Variable Rent

Jan 2026

Nest Hotel Osaka Shinsaibashi

Kinki

Variable Rent

Jan 2026

Nest Hotel Kumamoto

KyushuVariable Rent

Jan 2026

Nest Hotel Matsuyama

Shikoku

Variable Rent

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

17

Driving Shareholder Value via Ichigo Sponsor Pipeline
14 Hotels Across Japan (JPY 63.7B) in Sponsor Pipeline as of May 2024
Sponsor-Owned Hotels By Area
Hokkaido/Tohoku

Sendai

Kanto Koshinetsu

Yokohama

Utsunomiya, Tochigi

Tokyo

Kinki

Chugoku/
Shikoku

Shinjuku

Osaka (Namba)

Hiroshima

KyushuNo. OfHotelsBook Value atAcquisition(JPY M)

1

2,807

2

5,331

Tokyo

1

7,349

Kinki

2

20,384

Chugoku/
Shikoku

1

3,962

Kyushu7

23,940Total

1463,775

Area
Hokkaido/
Tohoku
Kanto
Koshienetsu

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

18

Shareholder-Oriented AM Fee Structure– Continued Implementation of No Fixed Fee, Performance Fee-Only
Structure i.e., Performance-Linked Fee Structure– To Further Incentivize the Asset Management Company to Continue
Focusing on Long-Term Performance, Ichigo Hotel Proposes theFollowing Revisions at its Shareholder Meeting Revise Gains on Sale Performance Fee— If a Gains on sale Performance Fee arises, subtract the Gains on Sale Performance
Fee amount from the NOI & Dividend Performance Fee

 Reduce the rates of the Gains on Merger Performance Fee and Gains on REITTOB Sale Performance Fee from 15% to 10%
 Provide More Detail on Gains on REIT TOB Sale Performance Fee— Reflect the possibility of squeeze-out transactions initiated by the buyer after a TOB,
squeezed-out shares will be included in the calculation of the additional performancefee— Portion of performance fee that corresponds to the squeezed-out shares will becalculated at the time of the completion of the squeeze-out transaction
The change in performance fee will be effective on October 26, 2024, pending approval of Proposal 3: Amendment to the Articles of Incorporation (AOI) – AssetManagement Fee Reduction & Linkage to Ichigo Hotel Share Performance at the Sixth Shareholder Meeting scheduled on October 26, 2024.
© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

19

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

20

January 2025 Forecast
̶ Forecasting Record High Dividend̶ Impact of AM Fee Change Under Revised Forecast: Dividend +JPY 1,176,+13.1%Jan 2024
Actual (A)Jan 2025
Previous
Forecast(Jul 2024)

Jan 2025
Revised
Forecast(B)

vs. Forecast(B) - (A)Operating Revenue

2,282

4,607

4,564

+2,282

Variable Rent

934

998

930

-4

Fixed Rent

1,222

1,281

1,296

+74

124

2,327

2,337

+2,212

1,032

1,679

1,287

+255

Repair & Maintenance

17

80

74

+56

Depreciation

463

481

465

+2

Operating Profit

1,250

2,927

3,277

+2,027

Recurring Profit

975

2,587

2,951

+1,975Net Income

974

2,586

2,950

+1,975

Dividend

JPY 2,976

JPY 7,899

JPY 9,009+JPY 6,033

RevPAR (Variable Rent Hotels)

JPY 7,937

JPY 8,131

JPY 7,986+JPY 49

NOI

2,061

2,085

2,042

-18

Post-Depreciation NOI

1,598

1,603

1,577

-20

149

710

986

+837

327,489

327,489

327,489–

Other (Gains on Sales, etc.)
Operating Expenses

Capex
No. Of Outstanding Shares(JPY million)

Major Variation Factors (vs. Initial Forecast)

Increase in Operating Revenue +2,282
Gains on sale: +2,181 (Sapporo Ekimae)
Increase on fixed rent +89 (KNOT SAPPORO, Kurashiki, KNOT YOKOHAMA)
Decrease in fixed rent -11 (Valie Hiroshima)
Increase in variable rent +94 (Ise Shima, OneFive Tokyo Shibuya, Nagoya)Decrease in variable rent -73(OneFive Fukuoka Tenjin/Osaka Sakaisuji)
Increase in retail rent +17(CF Shinsaibashi, KNOT YOKOHAMA, KNOT SAPPORO, Kumamoto)
Increase in utility income +14
Decrease from sale of Nest Sapporo Ekimae -29 (fixed rent -3, variable rent -25)
Increase in Operating Expenses +255
Increase in AM fee +72
Increase in repair expenses +56
Increase in fixed asset tax +44
Non-deductible consumption taxes +35
Increase in administrative expenses +25
Increase in utility expenses +13
Increase in insurance/management outsourcing fee/trust fee +5
Increase in Non-Operating Expenses +50
Increase in interest expenses +67
Decrease in borrowing-related expenses -17
Reference
Dividend: +202.7% YOY
ADR: JPY 9,296, Occupancy: 85.9%
21 Variable Rent Hotels (Sale of Nest Sapporo Ekimae on Dec 25, 2024)

The AM fee forecast assumes the AOI revisions proposed under the Sixth Shareholder Meeting scheduled on October 26, 2024.
© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

21

July 2025 Forecast
̶ Forecasting One-Time Profit Decrease on NOI Decrease From Nest Hotel
Sapporo Ekimae Sale & Downtime for Hotels With Lease End Contracts
̶ No Change in Long-Term Profit Growth After July 2025 Fiscal Period
Jul 2024
Actual (A)Jul 2025
Forecast (B)vs. Forecast(B) - (A)

Major Variation Factors (vs. Initial Forecast)
Decrease in Operating Revenue -126
Increase in fixed rent +26 (KNOT YOKOHAMA, Kurashiki, Nagano)
Decrease in fixed rent -28 (Sapporo Odori, Valie Hiroshima)
Increase in variable rent +40(Nest Osaka Shinsaibashi, Kumamoto, Matsuyama)
Decrease in variable rent -47 (Valie Hiroshima)
Increase in retail rent +5 (Comfort Shinsaibashi)
Increase in utility income +6
Decrease from sale of Nest Sapporo Ekimae -127 (fixed rent -31, variable rent -96)

Operating Revenue

2,440

2,314

-126

Variable Rent

1,011

908

-103

Fixed Rent

1,284

1,250

-34

143

154

+11

1,126

1,093

-33

Repair & Maintenance

26

43

+17

Depreciation

466

450

-15

Operating Profit

1,313

1,221

-92

Recurring Profit

996

896

-100

Net Income

995

895

-100

Dividend

JPY 3,040

JPY 2,733-JPY 307

Dropping Out of Non-Operating Profit -2

NOI

JPY 8,259

JPY 7,615-JPY 643

Post-Depreciation NOI

2,155

2,005

-149

Increase in Non-Operating Expenses +6
Increase in interest expenses +13
Decrease in borrowing-related expenses -7

Capex

1,689

1,555

-134

257

645

+387

327,489

327,489–

Other (Gains on Sales, e
Operating Expenses

No. Of Outstanding ShareNo. Of Hotels(JPY million)

Decrease in Operating Expenses -33
Decrease in AM fee -55
Decrease in depreviation -15
Decrease in fixed asset tax -3
Increase in insurance/management outsourcing fee/trust fee +4
Increase in utility expenses +5
Increase in administrative expenses +14
Increase in repair expenses +17

Reference
Dividend: -10.0% YOY
ADR: JPY 9,404, Occupancy: 81.0%
20 Variable Rent Hotels© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

22

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

23

Ichigo Sustainability Policy
Harmony With the Environment and Recycling
Ichigo actively monitors and minimizes the environmental impact of its business operations via extending the useful life of its
assets, reducing water and water consumption, and recycling.
Addressing Climate Change and Shift to Low-Carbon Society
Ichigo seeks to contribute to a low-carbon society and address climate change by lowering its energy consumption andgreenhouse gas emissions, using renewable energy, and improving the resilience of its assets.
Regulatory and Environmental Compliance
Ichigo complies with all environmental laws and regulations and Ichigo’s own independently-established environmental rules.
Ichigo also carefully monitors and complies with all applicable changes in laws and regulations.
Training, Awareness, and Cooperation With Stakeholders
Ichigo works to increase sustainability awareness via company training sessions, and promotes understanding of its
Sustainability Policy among all Ichigo employees and tenant employees working at its assets. Ichigo also works withstakeholders to promote understanding of its Sustainability Policy and implement sustainability initiatives.
Sustainability Performance Communication and Disclosure
Ichigo communicates this Sustainability Policy and Ichigo’s sustainability initiatives to society at large. Ichigo also obtains
certifications for its sustainability activities on an ongoing basis.
Sustainable Procurement
Ichigo implements sustainable procurement measures, including the use of environmentally-friendly construction methods
and materials, actively installing energy and resource efficient equipment, and the inclusion of sustainability initiatives as aselection criteria for business partners.
Building a Diverse, Inclusive Organization
Ichigo respects human rights and works to build a diverse organization where employees work with respect for each otherand realize their full potential regardless of race, beliefs, religion, skin color, nationality, age, gender, sexual orientation,
gender identity, disabilities, and social status. Ichigo also provides a healthy, comfortable work environment that focuses on
employee performance and well-being, and drives organizational growth.
Biodiversity and Ecosystem Preservation
Ichigo contributes to the preservation of biodiversity and ecosystems via the addition of greenery to the interiors andexteriors of its assets, primarily using native plants.
© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

24

Ichigo Climate Positive: CO2 Reduction vs. Emissions (1)Ichigo CO2 Reduction = 4X CO2 Emissions

Ichigo Hotel
CO2 Emissions
6,729 tons

CO2 Reduction

101,217

CO2 Emissions

22,767tons

CO2 Reduction due to Ichigo & Ichigo Green Clean Energy
Power Plant Production

tons

Scope 1+2 Emissions(Ichigo + Ichigo Office + Ichigo Hotel + Ichigo Green)© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

25

Ichigo Climate Positive: CO2 Reduction vs. Emissions (2)Ongoing Ichigo Clean Energy Production Growth (CO2 Reduction Increase) &Renewable Energy Transition & Carbon Offsets (CO2 Emissions Reduction)
CO2 Reduction/Reduction Impact/CO2 Emissions■ Total Ichigo Power Plant CO2 Reduction ■ Total Ichigo CO2 Emissions (Scope 1+2)
□ CO2 Reduction Due to Energy Efficiency, Transition to Renewable Energy, and Non-Fossil Fuel Certificate Tracking for Ichigo Power Plants(tons)-250-7,07075,42575,808-34,470

83,41259,445

101,217

98,647

95,47854,803
26,409FY20/2

FY21/2-37,130

FY22/2

FY23/2

22,767
FY24/2

Notes: Reduction calculated using each EPCO’s adjusted CO2 emission factor disclosed by the Ministry of Environment as a constant for each period.
RE100 non-fossil fuel tracking certifies the environmental value of non-fossil electricity with tracking information on renewable energy power plants© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

26

RE100: Continued Renewable Energy Transition
Targeting Full Group-Wide 100% Renewable Energy Transition in FY25/2– Ichigo Hotel & Ichigo Office Have Completed Transition to 100% Renewable Energy
RE100 Progress (as of May 31, 2024)

RE100 Target: 2025

Non-Fossil Certificate
Tracking for
Ichigo Power Plants

92%

33%

Renewable Energy Switch

59%

Ichigo Hotel

19%
Ichigo Hotel

12%
Ichigo’s RE100 Target

100% Renewable Electricity Across its Operations by 2025
Including electricity used at Ichigo Hotel (3463), Ichigo Office (8975) assets© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

27

Ichigo SBT (Science Based Targets) Certification
Ichigo’s Greenhouse Gas Reduction Targets Certified as Aligned With
SBT’s 1.5°C Trajectory
SBT Certified Ichigo’s Greenhouse Gas Reduction Targets
TargetScope 1

Direct emissions owned or controlled by acompany

Scope 2

Indirect emissions associated with thepurchase of electricity, heat, or cooling

Scope 3

Indirect emissions that are not Scope 1 or 2
25% Reduction(emissions by third-party companies related to(2022 Base Year)a company‘s business activities)

Target Year

70% Reduction(2022 Base Year)
2030

Science Based Targets: Greenhouse gas reduction targets set in line with Paris Agreement goals© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

28

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+

Increase= Tenant
Satisfaction

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

Annual Power Production

228,739,150 kWh
Equivalent to annual energy
consumption of 52,900 households
Annual Energy Consumption(Japan Average) 4,322kWh/household(Ministry of Environment document)

Annual CO2 Reduction

101,217,992 tons
Equivalent to annual CO2 emissionof 44,000 cars
Gasoline Passenger Cars 2,300kg/car
per year(Ministry of Environment document)*Ichigo, Ichigo Green FY24/2 Actuals© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Ichigo Hotel(3463)

Ichigo Office(8975)

Certifications• BELS, 4 hotels
GRESB (Since 2021)• Received Green Starfor 3 years in a row.
Evaluated for ESG,
management, &performance
Transition to Renewable
Energy• Completed at 16 hotels• Purchased non-fossil
certificates for 14 hotels

Certifications• 24 (21 assets)• 32.6% of total leasable
office area
GRESB (Since 2016)• Received Green Star
for 7 years in a row.
Evaluated for ESG,
management, &performance
Transition to Renewable
Energy• Completed at all
assets by April 2023
(excludes partially-owned
assets)(as of August 31, 2024)

29

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, trackand field, and tennis.

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

Hiromi Miyake
Eishiro Murakami(Weightlifting)
OnlineChisato Kiyoyama(Track and Field)

In-Person

Certified as a Sports Yell
Company & Tokyo Metropolitan
Government Sports
Promotion Company for 7th year in a row
Ichigo Sports Site (Japanese only)
www.ichigo.gr.jp/ichigosports© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

30

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

Best Practice Governance
REIT

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• 2 of 5 AMC Directors 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

Independence of the Investment Corporation From AMC

Independent Directors at AMC

24 of 58 J-REITs have AMC Presidents serving as
Executive Director of the REIT

Only 4 Asset Management Companies have any
Independent Directors

All Ichigo Hotel Directors are Independent

2 of 5 Ichigo Investment Advisors' Directors
are Independent* Based on research as of August 31, 2024

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

31

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

32

RevPAR, ADR, & Occupancy Growth On Track
RevPAR on Growth Trajectory
Variable Rent Hotels: RevPAR, Occupancy, & ADR (Jul 2020 – Jul 2024)■ RevPAR

■ ADR

(JPY)

88.4%

Occupancy

87.1%
82.6%

86.2%
83.7%

9,344

9,205
8,957
69.3%

7,937

61.4%
49.8%

48.3%
5,487

5,276

2,629

7,186

2,404

4,893

4,703

4,981
2,890

8,259

7,498

6,259

4,532

3,391

Jul
2020

Jan
2021

Jul
2021

Jan
2022

Jul
2022

Jan
2023

Jul
2023

Jan
2024

Jul
2024

RevPAR

2,629

2,404

2,890

3,391

4,532

6,259

7,498

7,937

8,259

Occupancy

49.8%

48.3%

61.4%

69.3%

82.6%

87.1%

83.7%

86.2%

88.4%

ADR

5,276

4,981

4,703

4,893

5,487

7,186

8,957

9,205

9,344

Data comparisons for all periods use data of hotels currently owned by Ichigo Hotel. Hotel Wing International Nagoya, Nest Hotel Kumamoto, & Hotel Sunshine
Utsunomiya impacted from April 2023 by end of leasing all guest rooms to local governments. Pre-acquisition data for acquired hotels are based on data received fromthe previous owners.
© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

33

Portfolio Lease Details(as of July 31, 2024)

Lease Terms

Fixed Rent

Fixed + Variable Rent

Variable
Rent

Total

Form of Contract

Lease

Lease

Lease

Lease

–

Fixed Rent

Yes

Yes

Yes

–

–
–

–

Fixed Portion of Revenue Upside

Fixed Portion of Hotel GOP

ExcessAbove FixedPortion ofHotel GOP

Rental Income(Jul 2024 Actual)

JPY 449M(19.6%)

JPY 133M(5.8%)

JPY 1,661M(72.3%)

Not
Available1

JPY 2,296M(100%)

Number of Hotels

8 Hotels

2 Hotels

19 Hotels

1 Hotel30 Hotels

Total AcquisitionPrice

JPY 13.90B(19.9%)

JPY 4.16B(6.0%)

JPY 50.32B(72.0%)

JPY 1.49B(2.1%)

JPY 69.86B(100%)• 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• Smile Hotel Nagano• Valie Hotel Hiroshima• The OneFive Fukuoka Tenjin• The OneFive Garden Kurashiki• The OneFive Tokyo Shibuya• The OneFive Okayama• The OneFive Osaka Sakaisuji• Comfort Hotel Osaka Shinsaibashi(Ichigo Shinsaibashi Building)• HOTEL THE KNOT YOKOHAMA• Quintessa Hotel Ise Shima• Quintessa Hotel Ogaki• THE KNOT SAPPORO• Capsule Plus
Yokohama

Variable Rent

Hotels• Comfort Hotel Kushiro• Hotel Wing International Nagoya• Comfort Hotel Hamamatsu • Hotel Wing International Kobe Shin
• Comfort Hotel Central
Nagata Ekimae
International Airport• Comfort Hotel Suzuka• Hotel Livemax NihombashiHakozaki• Urbain Hiroshima Executive• Washington Hotel Plaza
Shimonoseki Eki Nishi• Hotel Sunshine Utsunomiya–

1 Operator did not provide consent to disclose information© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

34

Individual Hotel Summary(as of July 31, 2024)
Hotel
No.

Hotel

Hotel Name

Lease Terms

Location

LeasableArea(㎡)

Acquisition Book Value
Price(JPY M)(JPY M)(A)

Jul 2024 Appraisal
Value(JPY M)(B)

Cap Rate(%)

UnrealizedGains(B) - (A)

A-1

Nest Hotel Sapporo Ekimae

Variable + Fixed Rent

Sapporo5,734.93

2,160

2,126

2,810

5.0

+683

A-2

Nest Hotel Sapporo Odori

Variable + Fixed Rent

Sapporo5,638.78

1,450

1,382

1,970

4.9

+587

A-3

Comfort Hotel Kushiro

Fixed Rent

Kushiro, Hokkaido

3,180.58

300

264

370

5.4

+105

A-4

THE KNOT SAPPORO

Variable + Fixed Rent

Sapporo5,153.60

4,900

4,879

5,340

4.3

+460

B-1

Capsule Plus Yokohama

Variable Rent

Yokohama

1,183.26

1,490

1,545

1,490

4.6

-55

B-2

Smile Hotel Nagano

Variable + Fixed Rent

Nagano1,921.45

670

716

774

4.9

+57

B-3

Hotel Sunshine Utsunomiya

Fixed Rent

Utsunomiya, Tochigi

5,267.16

2,200

2,297

2,440

4.9

+142

B-4

HOTEL THE KNOT YOKOHAMA

Variable + Fixed Rent

Yokohama

5,794.75

4,800

4,789

6,050

4.2

+1,260

C-1

Smile Hotel Tokyo Asagaya

Variable + Fixed Rent

Tokyo

2,721.70

3,910

3,789

5,070

4.2

+1,280C-3

Hotel Livemax Nihombashi-Hakozaki

Fixed Rent

Tokyo

853.00

1,360

1,234

1,400

4.5

+165

C-4

The OneFive Tokyo Shibuya

Variable + Fixed Rent

Tokyo

1,470.52

3,700

3,772

4,560

3.4

+787

D-1

Comfort Hotel Hamamatsu

Fixed Rent

Hamamatsu, Shizuoka

4,173.92

1,550

1,345

1,760

5.1

+414

D-2

Hotel Wing International Nagoya

Variable + Fixed Rent

Nagoya5,255.66

2,670

2,708

2,200

4.6

-508

D-3

Comfort Hotel Central International Airport

Fixed Rent

Tokoname, Aichi

11,599.63

5,308

5,099

5,930

4.0

+830

D-4

Comfort Hotel Suzuka

Fixed Rent

Suzuka, Mie

2,186.65

300

277

362

5.0

+84
+61

D-5

Quintessa Hotel Ise Shima

Variable + Fixed Rent

Shima, Mie

11,523.25

610

607

669

5.2

D-6

Quintessa Hotel Ogaki

Variable + Fixed Rent

Ogaki, Gifu

7,883.29

1,070

1,054

1,150

5.1

+95

E-1

Smile Hotel Kyoto Shijo

Variable + Fixed Rent

Kyoto

4,891.84

4,480

4,478

3,770

4.3

-708

E-3

The OneFive Osaka Sakaisuji

Variable + Fixed Rent

Osaka

3,568.32

1,630

1,739

1,290

4.6

-449

E-4

Hotel Wing International Kobe Shin Nagata Ekima Variable + Fixed Rent

Kobe

4,540.90

1,490

1,366

1,880

4.5

+513

E-5

Nest Hotel Osaka Shinsaibashi

Variable + Fixed Rent

Osaka

8,057.26

7,600

7,438

6,030

4.3

-1,408

E-6

Comfort Hotel Osaka Shinsaibashi(Ichigo Shinsaibashi Building)

Variable + Fixed Rent

Osaka

5,760.79

3,700

3,692

4,150

4.1

+457

F-1

The OneFive Okayama

Variable + Fixed Rent

Okayama

5,543.70

1,200

1,166

2,070

5.6

+903

F-2

Nest Hotel Matsuyama

Variable + Fixed Rent

Matsuyama, Ehime

6,671.94

1,610

1,605

2,040

5.5

+434

F-3

Urbain Hiroshima Executive

Fixed Rent

Hiroshima

2,756.20

1,800

1,728

2,010

5.3

+281

F-4

The OneFive Garden Kurashiki

Variable + Fixed Rent

Kurashiki, Okayama

3,964.19

1,725

2,101

2,410

4.8

+308

F-5

Valie Hotel Hiroshima

Variable + Fixed Rent

Hiroshima
Shimonoseki,
Yamaguchi
Fukuoka

4,332.50

1,500

1,510

1,760

4.8

+249

5,709.35

1,080

1,019

1,220

4.8

+200

1,910.94

1,380

1,422

2,420

4.1

+997

F-6

Washington Hotel Plaza Shimonoseki Eki Nishi

G-1

The OneFive Fukuoka Tenjin

Variable + Fixed Rent

G-3

Nest Hotel Kumamoto

Variable + Fixed Rent

合計

Fixed Rent

Kumamoto

6,404.36

2,220

2,157

2,350

5.2

+192

Total (30 Hotels)

145,654.42

69,86369,32077,745

4.5+8,424© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

35

July 2024 Fiscal Period Individual Hotel Operating Results (1)(year-on-year)
Lease Terms

Location

No. of
Guest
Rooms

Nest Hotel Sapporo Ekimae

Variable + Fixed Rent

Sapporo162

10,184(-6.2%) 93.7%(-1.3%)

10,866(-4.9%)

370.3(-0.8%)

A-2

Nest Hotel Sapporo Odori

Variable + Fixed Rent

Sapporo121

10,503(+2.8%) 87.1%(+1.0%)

12,062(+1.8%)

254.1(+3.4%)

A-3

Comfort Hotel Kushiro

Fixed Rent

Kushiro, Hokkaido

126

6,801

(+7.1%) 84.2%(-6.6%)

8,076(+14.6%)161.2(+6.6%)A-4

THE KNOT SAPPORO

Variable + Fixed Rent

Sapporo140

15,262(+4.0%) 99.2%(+0.6%)

15,388(+3.4%)

414.4(+4.5%)

B-2

Smile Hotel Nagano

Variable + Fixed Rent

Nagano76

7,339(+10.3%) 96.3%(-1.8%)

7,624(+12.3%)106.8(+31.9%)B-3

Hotel Sunshine Utsunomiya

Fixed Rent

Utsunomiya, Tochigi

160

4,855

(-9.9%) 70.5%(-6.0%)

6,881(-4.2%)

157.1(-22.9%)

B-4

HOTEL THE KNOT YOKOHAMA

Variable + Fixed Rent

Yokohama

145

13,271(+8.6%) 93.8%(-2.2%)

14,148(+11.0%)377.8(+6.8%)

C-1

Smile Hotel Tokyo Asagaya

Variable + Fixed Rent

Tokyo

112

11,856(-0.6%) 98.0%(-1.7%)

12,100(+1.0%)

243.7(-0.1%)C-4

The OneFive Tokyo Shibuya

Variable + Fixed Rent

Tokyo

72

21,103(+22.5%) 99.9%(+1.1%)

21,115(+21.1%)282.4(+23.3%)

D-1

Comfort Hotel Hamamatsu

Fixed Rent

Hamamatsu, Shizuoka

196

5,940

(+3.9%) 77.9%(-5.5%)

7,622(+9.9%)

212.8(+4.9%)

D-2

Hotel Wing International Nagoya

Variable + Fixed Rent

Nagoya224

5,746(+55.3%) 82.7% (+37.7%)

6,950(+12.8%)248.0(+59.0%)

D-3

Comfort Hotel Central International Airpor

Fixed Rent

Tokoname, Aichi

350

7,447

(+22.8%) 75.3% (+10.9%)9,885(+10.8%)482.9(+24.5%)

D-4

Comfort Hotel Suzuka

Fixed Rent

Suzuka, Mie

105

5,639

(+17.2%) 79.2%(+2.7%)

7,122(+14.2%)108.2(+17.6%)

D-5

Quintessa Hotel Ise Shima

Variable + Fixed Rent

Shima, Mie

150

7,552

(+35.6%) 72.9% (+15.5%)

10,356(+17.4%)273.4(+19.7%)

D-6

Quintessa Hotel Ogaki

Variable + Fixed Rent

Ogaki, Gifu

98

5,763

(+3.5%) 84.5%(-2.4%)

6,817(+6.0%)

192.1(+3.8%)

E-1

Smile Hotel Kyoto Shijo

Variable + Fixed Rent

Kyoto

144

7,506

(+40.9%) 78.3% (+16.5%)

9,586(+21.0%)209.6(+43.7%)

E-3

The OneFive Osaka Sakaisuji

Variable + Fixed Rent

Osaka

130

6,465

(+1.6%)

6,573(-4.6%)

153.5(-2.4%)

E-4

Hotel Wing International Kobe Shin Nagat Variable + Fixed Rent

Kobe

133

6,779

(+11.8%) 82.9% (+15.8%)

8,173(-3.5%)

181.1(+13.9%)E-5

Nest Hotel Osaka Shinsaibashi

Variable + Fixed Rent

Osaka

302

7,401

(+17.8%) 87.8% (+15.1%)

8,430(+2.3%)

408.4(+18.4%)

E-6

Comfort Hotel Osaka Shinsaibashi(Ichigo Shinsaibashi Building)

Variable + Fixed Rent

Osaka

214

9,219

(+15.2%) 79.7%

11,573(+23.5%)361.3(+16.0%)

Hotel
No.

Hotel Name

A-1

July 2024 (February 2024 - July 2024)
RevPAR (JPY)

Occupancy (%)(-3.0%) 98.4%(-6.7%)ADR (JPY)

Revenue (JPY M)

The Capsule Plus Yokohama and the Washington Hotel Plaza Shimonoseki Eki Nishi are excluded because the hotel operators did not give consent to disclose hotelspecific data. However, No. of Guest Rooms are included in the Variable Rent Hotels, Fixed Rent Hotels, and Total above.
Data for the Hotel Livemax Nihombashi-Hakozaki are included in the Total and Fixed Rent Hotels data above, but not separately disclosed because the hotel operator did
not provide consent to disclose hotel-specific data.
Pre-acquisition data for the acquired hotels are based on data received from the previous owners.

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

36

July 2024 Fiscal Period Individual Hotel Operating Results (2)(year-on-year)
Hotel
No.

Hotel Name

Lease Terms

Location

No. of
Guest
Rooms

July 2024 (February 2024 - July 2024)
RevPAR (JPY)F-1

The OneFive Okayama

Variable + Fixed Rent

Okayama

208

5,417

F-2

Nest Hotel Matsuyama

Variable + Fixed Rent

Matsuyama, Ehime

190

F-3

Urbain Hiroshima Executive

Fixed Rent

Hiroshima

F-4

The OneFive Garden Kurashiki

Variable + Fixed Rent

F-5

Valie Hotel Hiroshima

G-1
G-3

(-5.5%) 96.2%

ADR (JPY)

Revenue (JPY M)(-2.6%)

5,634(-2.9%)

211.7(-4.5%)

5,511(+17.2%) 93.8% (+17.4%)

5,876(-0.2%)

246.3(+17.3%)

172

5,475

(+17.0%) 74.8% (+22.9%)

7,322(-4.8%)

174.2(+20.3%)

Kurashiki, Okayama

107

7,150

(-4.2%) 97.5%(+8.3%)

7,336(-11.5%)149.2(+13.3%)

Variable + Fixed Rent

Hiroshima

171

5,606

(-4.0%) 81.0%(+1.9%)

6,920(-5.7%)

177.1(-7.4%)The OneFive Fukuoka Tenjin

Variable + Fixed Rent

Fukuoka

77

11,785(+12.7%) 98.0%(+0.2%)

12,027(+12.5%)172.9(+13.1%)

Nest Hotel Kumamoto

Variable + Fixed Rent

Kumamoto

201

5,123

(+7.7%) 79.8%(+0.4%)

6,416(+7.2%)

200.2(+11.5%)

Other Hotels (Hotel Livemax Nihonbashi Hakozaki, Capsule Plus Yokohama,Washington Hotel Plaza Shimonoseki Eki Nishi)

Total

Occupancy (%)

455

Variable Rent Hotels

3,346

8,259

(+10.1%) 88.4%(+5.6%)

9,344(+4.3%) 5,234.3(+11.4%)

Fixed Rent Hotels

1,395

6,373

(+12.5%) 76.8%(+4.0%)

8,303(+8.3%) 1,375.7(+10.6%)

4,741

7,755

(+10.7%) 85.3%(+5.2%)

9,094(+5.2%) 6,610.1(+11.2%)The Capsule Plus Yokohama and the Washington Hotel Plaza Shimonoseki Eki Nishi are excluded because the hotel operators did not give consent to disclose hotelspecific data. However, No. of Guest Rooms are included in the Variable Rent Hotels, Fixed Rent Hotels, and Total above.
Data for the Hotel Livemax Nihombashi-Hakozaki are included in the Total and Fixed Rent Hotels data above, but not separately disclosed because the hotel operator did
not provide consent to disclose hotel-specific data.
Pre-acquisition data for the acquired hotels are based on data received from the previous owners.

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

37

Individual Hotel Financials (1)(JPY thousand)

Total

A-1

A-2

A-3

A-4

B-2

B-3

B-4

C-1

C-4

D-1

Nest Hotel
SapporoEkimaeNest Hotel
SapporoOdori

ComfortHotel Kushiro

THE KNOTSAPPORO

Smile Hotel
NaganoHotelSunshine
Utsunomiya

HOTEL THE
KNOT
YOKOHAMA

Smile HotelTokyo
Asagaya

The OneFive
Tokyo
ShibuyaD-3

D-4

Comfort
ComfortHotel Central
ComfortHotelInternational Hotel Suzuka
Hamamatsu
Airport(A) Rental Income

2,440,490

127,559

85,48818,419154,060

38,25364,263

161,316

140,585

122,500

55,361

151,441

15,442

Fixed Rent

1,284,968

31,12927,072

18,41974,016

6,096

64,263

68,94361,60347,56855,361

151,441

15,442

Variable Rent

1,011,822

96,42958,415–80,04432,157–

92,372

78,981

74,932–––Other Rent

143,700

–

–

–

–

–

–

–

–

–

–

–

–

(B) Rental Expenses

284,616

7,941

10,662

5,571

19,373

2,209

5,450

12,362

9,681

8,215

3,382

14,6683,084

Outsourcing
Fees

32,441

600

600

900

780

480

780

1,080

2,674

619

600

570

540

Insurance

6,497

237

253

130

229

75

235

305

137

92

149

437

75

RepairExpenses

26,365

1,471

1,063

151

–

23

–

–

2,732

1,975

–

761

388

Taxes

171,328

5,219

8,322

3,978

11,771

1,260

4,071

10,563

3,728

5,166

2,362

12,441

1,669

Other
Expenses

47,983

413

424

411

6,592

370

363

414

408

361

270

458

410

NOI
(A) - (B)

2,155,874

119,61774,825

12,848

134,687

36,04458,813

148,953

130,903

114,285

51,979136,773

12,358(D) Depreciation

466,125

17,545

17,682

5,930

21,020

7,352

5,748

16,372

22,717

8,162

15,92533,326

4,663

Net Rental
Income(C) - (D)1,689,748

102,072

57,143

6,917

113,666

28,69153,064

132,580

108,186

106,12236,053

103,446

7,695

(C)

* Rents for Hotel Wing International Nagoya, Hotel Wing International Kobe Shin Nagata Ekimae, Hotel Livemax Nihombashi-Hakozaki, Capsule Plus Yokohama,Urbain Hiroshima Executive, and Washington Hotel Plaza Shimonoseki Eki Nishi, as well as retail income at The OneFive Osaka Sakaisuji, Smile Hotel Tokyo
Asagaya, Nest Hotel Kumamoto, Comfort Hotel Shinsaibashi (Ichigo Shinsaibashi Building), HOTEL THE KNOT YOKOHAMA, and THE KNOT SAPPORO 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.

38

Individual Hotel Financials (2)(JPY thousand)
D-5

D-6

E-1

E-3

Quintessa
Hotel Ise
Shima

Quintessa
Hotel Ogaki

Smile Hotel
Kyoto Shijo

E-5

F-1

The OneFive Nest Hotel
The OneFive
Osaka
Osaka
Okayama
Sakaisuji
Shinsaibashi

F-2

F-4

F-5

G-1

G-3

Nest Hotel
Matsuyama

The OneFive
GardenKurashiki

Valie Hotel
Hiroshima

The OneFive
FukuokaTenjinNest Hotel
Kumamoto

Other(A) Rental Income

59,471

22,25978,22744,715

167,157

71,25677,80440,24566,37965,78961,360551,130

Fixed Rent

20,49015,85538,273

11,42566,291

62,161

36,32339,857

29,137

34,05625,134

284,602

Variable Rent

38,9806,404

39,95433,290100,865

9,095

41,480387

36,641

31,73236,225

123,427

–

–

–

–

–

–

–

–

600

–

–

143,100(B) Rental Expenses

5,988

8,932

8,860

9,975

19,587

6,815

7,617

5,678

5,619

5,333

7,744

89,859Outsourcing
Fees

1,080

1,080

619

1,069

1,200

600

720

600

720

600

780

13,148Insurance

465

418

205

158

364

232

312

169

202

90

274

1,243

RepairExpenses

305

775

2,319

4,817

1,229

2,068

1,965

158

–

317

1,430

2,411

3,723

6,245

5,355

3,562

16,383

3,476

4,191

4,387

4,328

3,957

4,849

40,309

414

413

359

366

410

437

428

362

367

368

409

32,746

NOI(A) - (B)53,483

13,32669,36734,740147,569

64,44170,18634,56760,75960,45553,615461,270(D) Depreciation

9,613

14,96518,485

11,32736,80018,363

20,631

23,151

24,042

8,653

22,95280,690Net Rental
Income(C) - (D)43,869-1,63950,882

23,413

110,769

46,07849,554

11,41536,71751,802

30,662

380,579

Other Rent

Taxes
Other
Expenses(C)* Rents for Hotel Wing International Nagoya, Hotel Wing International Kobe Shin Nagata Ekimae, Hotel Livemax Nihombashi-Hakozaki, Capsule Plus Yokohama,Urbain Hiroshima Executive, and Washington Hotel Plaza Shimonoseki Eki Nishi, as well as retail income at The OneFive Osaka Sakaisuji, Smile Hotel Tokyo
Asagaya, Nest Hotel Kumamoto, Comfort Hotel Shinsaibashi (Ichigo Shinsaibashi Building), HOTEL THE KNOT YOKOHAMA, and THE KNOT SAPPORO 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 2023
Rent

Jul 2023
Ratio

Rent

Jan 2024
Ratio

Rent

Ratio

992,21855.2%

1,222,928

53.6%

1,284,968

52.7%

Variable Rent

756,45842.1%

934,780

41.0%

1,011,822

41.5%

Rent from Retail Tenants

29,333

1.6%

88,168

3.9%

99,790

4.1%

Other (Utility Income)

18,5351.0%

36,335

1.6%

43,910

1.8%

Total

1,796,545

100%

2,282,212

100%

2,440,490

100%

Rent

Fixed

Operating Results (Feb 2023 – Jan 2024)

RevPAR (right axis)

ADR (right axis)

Occupancy (left axis)

(JPY)

100%

12,00080%

10,000

60%

8,000

40%

6,000

20%

4,000

0%

2,000
Aug 2023

Sep 2023

Oct 2023

Nov 2023

Dec 2023

Jan 2024

Feb 2024

Mar 2024© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Apr 2024

May 2024

Jun 2024

Jul 2024

40

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

SapporoAccess5-minute walk from
Sapporo Station on
Sapporo City Metro
Namboku LineADR
(right)Operating Results (Aug 2023 – Jul 2024)

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

25,00080%

20,00060%

15,000

Nest Hotel Japan
Corporation40%

10,000

Guest Rooms

162

20%

5,000

AcquisitionPrice

JPY 2.16B

0%Operator0
Aug 2023

Nov 2023

Feb 2024

May 2024* The asset sale transaction date is scheduled on December 25, 2024.

A-2 Nest Hotel Sapporo Odori
Location

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

Nest Hotel Japan
Corporation

Guest Rooms
Acquisition
Price

ADR
(right)Operating Results (Aug 2023 – Jul 2024)

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

25,00080%

20,00060%

15,00040%

10,000

121

20%

5,000

JPY 1.45B

0%0
Aug 2023© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Nov 2023

Feb 2024

May 2024

41

Variable Rent Hotel Details
A-3 THE KNOT SAPPORO
ADR(right)

RevPAR(right)Occupancy(left) (JPY)

Location

SapporoOperating Results (Aug 2023 – Jul 2024)100%

30,000Access2-minute walk from
Susukino Station on
Sapporo Municipal
Subway Namboku
Line

80%

24,00060%

18,000

OneFive Hotels Inc.

40%

12,000

Guest Rooms

140

20%

6,000

AcquisitionPrice

JPY 4.90B

0%Operator0
Aug 2023

Nov 2023

Feb 2024

May 2024* Acquired on August 25, 2023. Pre-acquisition data based on data received from previous owners.

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

42

Variable Rent Hotel Details
B-2 Smile Hotel Nagano
Location

NaganoAccess3-minute walk from
Nagano Station on JR
Hokuriku Shinkansen
Line

ADR
(right)Operating Results (Aug 2023 – Jul 2024)

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

10,000

80%

8,000

60%

6,000

K.K. Hospitality
Operations

40%

4,000

Guest Rooms

76

20%

2,000

AcquisitionPrice

JPY 670M

0%Operator0
Aug 2023

Nov 2023

Feb 2024

May 2024

B-4 HOTEL THE KNOT YOKOHAMA
Location

Yokohama

ADR(right)Operating Results (Aug 2023 – Jul 2024)100%

5-minute walk from JR
Yokohama Station

RevPAR(right)Occupancy(left) (JPY)20,00080%

16,00060%

12,000K.K. Hospitality
Operations

40%

8,000

Guest Rooms

145

20%

4,000

AcquisitionPrice

JPY 4.8B

0%

AccessOperator0
Aug 2023

Nov 2023

Feb 2024

May 2024* Acquired on August 25, 2023. Pre-acquisition data based on data received from previous owners.

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

43

Variable Rent Hotel Details
C-1 Smile Hotel Tokyo Asagaya
Location

Suginami-ku, Tokyo

ADR(right)Operating Results (Aug 2023 – Jul 2024)

RevPAR(right)100%

AccessOperator
Guest Rooms

1-minute walk from
Asagaya Station on JR
Chuo and Sobu Lines

15,00080%

12,00060%

9,000

K.K. Hospitality
Operations

40%

6,000

20%

3,000

112

0%

0
Aug 2023

AcquisitionPrice

Occupancy(left) (JPY)Nov 2023

Feb 2024

May 2024

JPY 3.9B

C-4 The OneFive Tokyo Shibuya
Location

Shibuya-ku, Tokyo

Operating Results (Aug 2023 – Jul 2024)

100%

Access6-minute walk from
Shibuya Station on JR,
Tokyu, Keio, andTokyo Metro Lines

Operator
Guest Rooms

OneFive Hotels Inc.

ADR
(right)

RevPAR(right)25,00080%

20,00060%

15,00040%

10,000

20%

5,000

72
0

0%

AcquisitionPrice

Occupancy(left)(JPY)

JPY 3.7B

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

Nov 2023

Feb 2024

May 2024

44

Variable Rent Hotel Details
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.

ADR
(right)Operating Results (Aug 2023 – Jul 2024)

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

10,000

80%

8,000

60%

6,000

40%

4,000
2,000

Guest Rooms

224

20%

AcquisitionPrice

JPY 2.67B

0%0
Aug 2023

Nov 2023

Feb 2024

May 2024

D-5 Quintessa Hotel Ise Shima
Location
Location

AccessOperator
Operator
Guest
Rooms
Acquisition
Price
Guest
Rooms
Acquisition
Price

Shima,
NagoyaMie
3-minute walk from
2-minute walk from
Shima Yokoyama
Marunouchi Station on
Station on Kintetsu
both Nagoya Subway
Shima Line and 10Network Sakuradori
minute walk from Ugata
Line and Tsurumai
Station on Kintetsu
Line
Shima Line
Minacia Co., Ltd.
Core Global
224
Management
Co., Ltd.
JPY 2.67B
150

ADR(right)Operating Results (Aug 2023 – Jul 2024)

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

12,50080%

10,000

60%

7,500

40%

5,000

20%

2,500
0

0%
Aug 2023

Nov 2023

Feb 2024

May 2024

JPY 6.10B* Acquired on August 25, 2023. Operating results data for August 2023 is based on data received from previous owner.
© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

45

Variable Rent Hotel Details
D-6 Quintessa Hotel Ogaki
Location

Ogaki, Gifu

Access5-minute walk from
Ogaki Station on JR
Tokaido Line, Yoro
Railway Yoro LineOperator

Core Global
Management Co., Ltd.

Guest Rooms

98

AcquisitionPrice

JPY 1.07B

ADR(right)Operating Results (Aug 2023 – Jul 2024)

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

10,000

80%

8,000

60%

6,000

40%

4,000

20%

2,000
0

0%
Aug 2023

Nov 2023

Feb 2024

May 2024* Acquired on August 25, 2023. Operating results data before acquisition is based on data received from previous owner.

E-1 Smile Hotel Kyoto Shijo
Location
Location

AccessAccessOperator
Guest Rooms
Guest Rooms
Acquisition
Acquisition
Price
Price

Kyoto
Nagoya5-minute walk from
2-minute walk from
Shijo Station on Kyoto
Marunouchi Station on
City Subway Karasuma
both Nagoya Subway
Line and Karasuma
Network Sakuradori
Station on Hankyu
Line and Tsurumai
Kyoto Main Line
Line
K.K.
Hospitality
MinaciaCo., Ltd.
Operations
224
144
JPY 2.67B
JPY 4.48B

ADR(right)Operating Results (Aug 2023 – Jul 2024)

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

15,00080%

12,000

60%

9,000

40%

6,000

20%

3,000

0%

0
Aug 2023© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Nov 2023

Feb 2024

May 2024

46

Variable Rent Hotel Details
E-3 The OneFive Osaka Sakaisuji
RevPAR(right)Occupancy(left) (JPY)

Location

Osaka

Operating Results (Aug 2023 – Jul 2024)100%

10,000Access5-minute walk from
Sakaisuji-Hommachi
Station on Osaka
Municipal Subway
Chuo Line

80%

8,000

60%

6,000

40%

4,000

20%

2,000

Operator

OneFive Hotels Inc.

Guest Rooms

130

AcquisitionPrice

JPY 1.63B

ADR(right)0%0
Aug 2023

Nov 2023

Feb 2024

May 2024

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 (Aug 2023 – Jul 2024)

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

Nov 2023

Feb 2024

May 2024

47

Variable Rent Hotel Details
E-5 Nest Hotel Osaka Shinsaibashi
Location

Osaka

Access1-minute walk from
Nagahoribashi Station
on Osaka Municipal
Subway Sakaisuji LineADR
(right)Operating Results (Aug 2023 – Jul 2024)

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

10,000

80%

8,000

60%

6,000

Nest Hotel Japan
Corporation

40%

4,000

Guest Rooms

302

20%

2,000

AcquisitionPrice

JPY 7.60B

0%Operator0
Aug 2023

Nov 2023

Feb 2024

May 2024

E-6 Comfort Hotel Osaka Shinsaibashi (Ichigo Shinsaibashi Building)]
Location

Osaka

Access5-minute walk from
Shinsaibashi Station
on Osaka Metro
Midosuji Line andNagahoribashi Station
on Osaka Metro
Sakaisuji LineOperator

Greens Co., Ltd.

Guest Rooms

214

AcquisitionPrice

JPY 3.70B

ADR(right)Operating Results (Aug 2023 – Jul 2024)

RevPAR(right)Occupancy(left)(JPY)

100%

15,00080%

12,000

60%

9,000

40%

6,000

20%

3,000

0%

0
Aug 2023

Nov 2023

Feb 2024

May 2024* Acquired on August 25, 2023. Operating results data before acquisition is based on data received from previous owner.

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

48

Variable Rent Hotel Details
F-1 The OneFive Okayama
Location

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

Operator

OneFive Hotels Inc.

Guest Rooms

208

AcquisitionPrice

JPY 1.20B

ADR(right)Operating Results (Aug 2023 – Jul 2024)

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

10,000

80%

8,000

60%

6,000

40%

4,000

20%

2,000

0%

0
Aug 2023

Nov 2023

Feb 2024

May 2024

F-2 Nest Hotel Matsuyama
Location

Matsuyama, Ehime

Access5-minute drive from
Matsuyama Airport,
3-minute walk from
Katsuyamacho Station
on Iyo Railway JonanLine

Operator

Nest Hotel Japan
Corporation

Guest Rooms

190

AcquisitionPrice

JPY 1.61B

ADR(right)Operating Results (Aug 2023 – Jul 2024)

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

10,000

80%

8,000

60%

6,000

40%

4,000

20%

2,000
0

0%
Aug 2023© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Nov 2023

Feb 2024

May 2024

49

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

Kurashiki, Okayama

ADR(right)Operating Results (Aug 2023 – Jul 2024)

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

12,5008-minute walk from
Kurashiki Station on
JR Sanyo Main Line80%

10,00060%

7,500

OneFive Hotels Inc.

40%

5,000

Guest Rooms

107

20%

2,500

AcquisitionPrice

JPY 1.73B

0%

AccessOperator0
Aug 2023

Nov 2023

Feb 2024

May 2024

F-5 Valie Hotel Hiroshima
Location

Hiroshima

Access3-minute walk from
Jogakuin-mae Station
on Hiroden Tram LineADR
(right)Operating Results (Aug 2023 – Jul 2024)

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
Aug 2023

Nov 2023

Feb 2024

May 2024* Hiroshima Prefecture temporarily leased all rooms of the Valie Hotel Hiroshima until March 31, 2023.

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

50

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 (Aug 2023 – Jul 2024)

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

15,00080%

12,00060%

9,000

OneFive Hotels Inc.

40%

6,000

Guest Rooms

77

20%

3,000

AcquisitionPrice

JPY 1.38B

0%Operator0
Aug 2023

Nov 2023

Feb 2024

May 2024

G-3 Nest Hotel Kumamoto
Location

Kumamoto

Access2-minute walk from
Nishikarashimacho
Station on Kumamoto
City Tram LineOperator

Nest Hotel Japan
Corporation

Guest Rooms

201

AcquisitionPrice

JPY 2.22B

ADR(right)Operating Results (Aug 2023 – Jul 2024)

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

10,000

80%

8,000

60%

6,000

40%

4,000

20%

2,000

0%

0
Aug 2023© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Nov 2023

Feb 2024

May 2024

51

Fixed Rent Hotel Details
A-3 Comfort Hotel Kushiro
Location

Kushiro, Hokkaido

B-3 Hotel Sunshine Utsunomiya
Location

Utsunomiya, Tochigi

Access2-minute walk from
Kushiro Station on JR
Nemuro Main Line

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

Operator

Greens Co., Ltd.

Operator

GK S Hotel Operations
Utsunomiya

Guest Rooms

126

Guest Rooms

160

AcquisitionPrice

JPY 300M

AcquisitionPrice

JPY 2.2B

C-3 Hotel Livemax Nihombashi-Hakozaki
Location

Chuo-ku, Tokyo

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

Live Max Inc.

Guest Rooms

48

AcquisitionPrice

JPY 1.36B

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

JPY 1.55B

52

Fixed Rent Hotel Details
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 Line

D-4 Comfort Hotel Suzuka
LocationSuzuka, Mie

Access3-minute walk from
Shirako Station on
Kintetsu Nagoya LineOperator

Greens Co., Ltd.

Greens Co., Ltd.

Guest Rooms

105

Guest Rooms

350

AcquisitionPrice

JPY 300M

AcquisitionPrice

JPY 5.31B

Operator

F-3 Urbain Hiroshima Executive

F-6 Washington Hotel Plaza Shimonoseki Eki Nishi
Location

Shimonoseki,
Yamaguchi

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

Access3-minute walk from
Shimonoseki Station
on JR Sanyo MainLine

Operator

Yuki Corporation

Operator

Washington HotelCorp.

Location

Hiroshima

Guest Rooms

172

AcquisitionPrice

JPY 1.80B

Guest Rooms

238

AcquisitionPrice

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

53

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

54

Stable Financial Base
Outstanding Loan Balance
Jul 31, 2022
AmountJan 31, 2023

Jul 31, 2023

Jan 31, 2024

Jul 31, 2024

JPY 25.47B

JPY 25.47B

JPY 25.47B

JPY 32.47B

JPY 32.47B

Long-Term Loan Ratio

70.7%

63.7%

46.0%

84.8%

100%

Fixed Rate Ratio

70.7%

63.7%

46.0%

84.8%

100%

Average Interest Rate

0.77%

0.76%

0.70%

1.01%

1.22%

Average Remaining Maturity

1.1 years

1.0 years

0.7 years

2.7 years

3.6 years

LTV (Total Assets Basis)

42.9%

42.6%

43.1%

43.4%

43.3%

Distribution of Loan Maturities(JPY M)

Fixed Rate

8,200

4,500
3,500

3,000

2,250

2,000

Jan
2025

Jul
2025

Jan
2026

Jul
2026

3,500

3,300

Jan
2027

Jul
2027

Jan
2028

Jul
2028

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

Jan
2029

Jul
2029

2,220

Jan
2030

Jul
2030

Jan
2031

55

Loan Details
Loan

LenderAmount(JPY M)

Floating/
Fixed

Interest Rate(%)

Borrowing Date

Maturity

Term Loan 9

SMBC, Mizuho, SBI Shinsei, Resona

1,500

Fixed

0.92000%

November 30, 2018

November 30, 2024

Term Loan 11

SMBC, Mizuho, SBI Shinsei, Resona, Aozora

1,500

Fixed

0.73575%

July 19, 2019

November 29, 2024

(as of July 31, 2024)

Lender Composition

Term Loan 13

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

2,000

Fixed

0.65600%

February 28, 2020

February 27, 2026

Term Loan 23

SMBC, Mizuho, SBI Shinsei, Resona, Aozora

7,000

Fixed

1.02900%

August 25, 2023

August 25, 2026

Term Loan 24

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

Resona
10%

1,200

Fixed

0.96400%

August 31, 2023

August 25, 2026

Term Loan 25

SMBC, Mizuho, SBI Shinsei, Resona

3,300

Fixed

1.23900%

August 31, 2023

August 31, 2026

Term Loan 26

SMBC, Mizuho, SBI Shinsei, Resona

3,500

Fixed

1.20200%

November 30, 2023

November 30, 2027

Term Loan 27

SMBC, Mizuho, SBI Shinsei, Resona

3,500

Fixed

1.49900%

November 30, 2023

November 30, 2029

Term Loan 28

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

1,800

Fixed

1.39800%

January 31, 2024

July 31, 2029

Term Loan 29

SMBC

450

Fixed

1.40100%

February 29, 2024

July 31, 2029

Term Loan 30

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

4,500

Fixed

1.58500%

February 29, 2024

August 31, 2030

Term Loan 31

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

2,220

Fixed

1.63100%

April 30, 2024

April 30, 2030

Total Borrowings

Aozora2%

Fukuoka3%
Nishi-Nippon
City3%

32,470

Average 1.22%

Average Remaining Loan Term 3.6 years

SMBC
39%

SBI Shinsei
12%

Mizuho31%

Fixed vs. Floating

Fixed
100%

* Includes interest fixed via swaps© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

56

Shareholder Composition
Major Shareholders (as of July 31, 2024)
Name
1 Ichigo Trust

By Number of Shares Held
No. OfSharesShare

59,08718.0%

Custody Bank of Japan, Ltd.,
Trust Account42,51813.0%

3

The Master Trust Bank of Japan,
Trust Account33,532

10.2%

5

Nomura Trust & Banking Co., Ltd.,
Investment Trust Account32,214(12.6%)
16,789(6.6%)

2

4 Ichigo Inc. (Sponsor)

Foreign Corporations & Individuals
Non-Financial Domestic Corporations

29,4209.0%

11,985

3.7%

110,312(43.3%)

Domestic Financial Institutions
Domestic Individuals

85,351(26.1%)

82,734(25.3%)

36,924(11.3%)

38,315(11.7%)

97,538(29.8%)

113,778(34.7%)

95,659(37.5%)

6 Ichigo Trust Pte., Ltd.

10,9083.3%

7 Individual Investor

3,465

1.1%

8 Individual Investor

2,613

0.8%

9 MORGAN STANLEY & CO. LLC

2,541

0.8%

Domestic Individuals

0.6%

Domestic Financial Institutions
City banks, trust banks

Jul 2023(Outstanding Shares) (254,974 shares)

108,902(33.3%)

91,436(27.9%)Jan 2024(327,489 shares)

Jul 2024(327,489 shares)

By Number of Shareholders

10 Fuji-Izu Japan Agricultural Cooperatives

2,000

Regional banks

Total

198,069

60.5%

Other (including securities companies)
Non-Financial Domestic Corporations
Foreign Corporations & Individuals
Total© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Jul 31, 2024
Shareholders Share

Jul 31, 2023
Shareholders

Jan 31, 2024
Shareholders

14,104

13,66215,855

97.6%

32
4

35
4

33
3

0.2%
–

–

–

1

–

28
187

31
192

29
207

0.2%
1.3%

132
14,455134
14,023145
16,240

0.9%
100%

57

Appendix: Sponsor, Portfolio Map, & Others© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

58

Capturing Demand Via Contract Renewals & Rebranding
TimingHotel Name

Lease Terms

Changes

Feb 2021

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

Rebranding

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 OneFive Hotels• Revised variable rent

Feb 2022

The OneFive Garden Kurashiki(formerly Court Hotel Kurashiki)

Variable+Fixed
Rent

Rebranding• Operator change to OneFive Hotels

Dec 2022

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

Rebranding• Added variable rent

Mar 2024

Smile Hotel Kyoto Shijo

Variable+Fixed
Rent• Added GOP-linked variable rent

• Decreased fixed rent
• Revised variable rent

Lease Renewal • Increased fixed rent2024

End of contracts at 2 hotels

2025

End of contracts at 3 hotels© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

59

Hotel Map
Hotel Name

Geographic Composition (Acquisition Price Basis)

Hotel No.

LocationA-1

Hokkaido

Nest Hotel Sapporo Ekimae

A-2

Hokkaido

Nest Hotel Sapporo Odori

A-3

Hokkaido

Comfort Hotel Kushiro

A-4

Hokkaido

THE KNOT SAPPORO

B-1

Kanto Koshinetsu

Capsule Plus Yokohama

B-2

Kanto Koshinetsu

Smile Hotel Nagano

B-3

Kanto Koshinetsu

Hotel Sunshine Utsunomiya

B-4

Kanto Koshinetsu

HOTEL THE KNOT YOKOHAMA

C-1

Tokyo

Smile Hotel Tokyo Asagaya

C-3

Tokyo

Hotel Livemax Nihombashi-Hakozaki

C-4

Tokyo

The OneFive Tokyo Shibuya

D-1

Tokai

Comfort Hotel Hamamatsu

D-2

Tokai

Hotel Wing International Nagoya

D-3

Tokai

Comfort Hotel Central International Airport

D-4

Tokai

Comfort Hotel Suzuka

D-5

Tokai

Quintessa Hotel Ise Shima

D-6

Tokai

Quintessa Hotel Ogaki

E-1

Kyoto

Smile Hotel Kyoto Shijo

E-3

Osaka

The OneFive Osaka Sakaisuji

E-4

Kobe

Hotel Wing International Kobe Shin Nagata Ekimae

E-5

Osaka

Nest Hotel Osaka Shinsaibashi

E-6

Osaka

Comfort Hotel Osaka Shinsaibashi(Ichigo Shinsaibashi Building)

F-1

Chugoku/Shikoku

The OneFive Okayama

F-2

Chugoku/Shikoku

Nest Hotel Matsuyama

FukuokaMatsuyama

F-3

Chugoku/Shikoku

Urbain Hiroshima Executive

G-1

F-2

F-4

Chugoku/Shikoku

The OneFive Garden Kurashiki

F-5

Chugoku/Shikoku

Valie Hotel Hiroshima

F-6

Chugoku/Shikoku

Washington Hotel Plaza Shimonoseki Eki Nishi

G-1

KyushuThe OneFive Fukuoka Tenjin

G-3

KyushuNest Hotel Kumamoto

Nagoya Kobe
2.1%
Kyushu 3.8%
5.2%

Sapporo

Osaka
18.5%

A-1

A-2

KushiroA-4

A-3

Hokkaido
12.6%

Tokyo
12.8%

Kanto
Koshinetsu
13.1%

Chugoku/
Shikoku
Kyoto Tokai
12.8%
6.4% 12.7%

B-2

Nagano(as of July 31, 2024)

NagoyaD-2
Utsunomiya B-3

Gifu D-6

Osaka E-3

Kyoto E-1

Tokyo

E-5

C-1

E-6

Kurashiki F-4
Shimonoseki F-6

KumamotoG-3© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

C-3

C-4

Yokohama B-1

B-4

Hamamatsu D-1
Central Int’l Airport D-3
SuzukaKobe E-4

Ise

D-4

D-5

Okayama F-1
Hiroshima F-3

F-5

Variable Rent
Fixed Rent

60

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)
IchigoIchigo Hotel (3463)(TSE Prime 2337)

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 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.

AssetManagement

Ichigo Investment Advisors

Ichigo Office (8975)
Ichigo Green (9282)

Ichigo Realty Management

Sustainable
Real Estate

Ichigo Estate

CentroIchigo Owners

Ichigo Animation

Ichigo Marché

OneFive Hotels

Miyako City

Clean Energy
Other

Ichigo ECO Energy

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

Collinear

61Synergies Between Ichigo Hotel and Sponsor‒ Strengthen acquisitions through leveraging Ichigo’s sourcing network‒ Optimize assets for REIT investments through Ichigo’s real estatevalue-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)Value-Add(Increase Asset Value)Role Value-add capex

Buy Rectify building code issues

 On-going renovation and equipment renewalHard Seismic and safety reinforcement

 Increase hotel attractiveness & competitiveness Large-scale structural and equipment renewal Grow earnings via collaboration with hotel

 Change hotel operator/brandoperators
 Grow earnings via rebranding and improving
lease terms
 Grow earnings via optimal cost control
Sell

Soft

 Improve lease terms
 Improve hotel operations
 Provide operations support (e.g., OneFive Hotels)

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

Sell

62

Acquisitions Leveraging Sponsor Support (OneFive Hotels)– Ichigo-Owned OneFive Hotels Operates 16 Hotels With Focus on the Hakata Area
in Fukuoka Prefecture– OneFive Hotels Deploys PROPERA, an AI-Based Revenue Management System
Developed by Ichigo, to Maximize Earnings and Increase Guest Satisfaction
Name

OneFive Hotels Inc.

Address

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

Representatives

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

Hotels Operated by One Five Hotels
Hokkaido

Kanto

THE KNOTSAPPOROThe OneFive
Tokyo Shibuya

KansaiThe OneFive
Osaka Sakaisuji

TohokuPaid-In Capital

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

Establishment
Date

March 2019The OneFive
Sendai• 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
Kyoto Shijo

Chugoku

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
Premier63

Ichigo Hotel Overview
Ichigo Hotel
Name

Ichigo Hotel REIT Investment Corporation

Securities Code3463

Address

2-6-1 Marunouchi, 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.

64

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: +81-3-4485-5232
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.

65