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.

July 25, 2024
IssuerIchigo Hotel REIT Investment Corporation (“Ichigo Hotel,” 3463)
2-6-1 Marunouchi, Chiyoda-ku, Tokyo
Representative: Eriko Ishii, 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: +81-3-4485-5232
Upward Earnings Forecast Revision for the July 2024 Fiscal Period
Ichigo Hotel is revising upward its earnings forecast for the July 2024 fiscal periodannounced in the March 15, 2024 release “January 2024 Fiscal Period Earnings.”
There is no change to the January 2025 fiscal period earnings forecast.
1. July 2024 Earnings Forecast Revision
Operating
Revenue

Operating
ProfitRecurring
Profit2,394

1,246924

923

2,820

2,433

1,302

984

983

3,002

+38+56+59+59+182% Change+1.6%

+4.5%

+6.4%

+6.4%+6.5%

Reference:July 2023

1,796933

722

721

2,831

PreviousForecast (A)New Forecast(B)Difference(B) - (A)Net
Income(JPY million)
Dividendper Share(JPY)

Reference: Net Income per Share: JPY 3,001
Period-end number of shares outstanding: 327,489 shares
Note: The new forecast is based on the “Preconditions for the July 2024 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 a forecast revision should a material discrepancy emerge between this forecastand results.

12. July 2024 Earnings Forecast Revision Rationale
Inbound demand growth has been steady, with the number of tourists reaching a record
17.77 million people in the first half of 2024 (January – June, estimates), according tothe Japan National Tourism Organization (JNTO).
On the back of the inbound tourism boom, Ichigo Hotel saw stable hotel demand
driven by domestic business demand and events in the July 2024 fiscal period, despitea decrease at some of Ichigo Hotel’s hotels due to the end of the Japanese
government’s domestic travel subsidy program.
Ichigo Hotel recorded variable rent exceeding the previous forecast at its variable rent
hotels and less-than-forecast repair expenses, and as a result, July 2024 operating
revenue, operating profit, recurring profit, net income, and dividend increased by JPY
38 million (+1.6%), JPY 56 million (+4.5%), JPY 59 million (+6.4%), JPY 59 million(+6.4%), and JPY 182 (+6.5%), respectively, versus the forecast announced in theMarch 15, 2024 release “January 2024 Fiscal Period Earnings.”

2Preconditions for the July 2024 Earnings Forecast
Preconditions
PeriodNumber ofHotels

 February 1, 2024 to July 31, 2024 (182 days) 30 hotels
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
July 2024 Fiscal Period
88.4%
JPY 9,314

3Occupancy
ADR4
1

OperatingRevenue

The forecast rental income assumes operators and tenants will fully pay
their contractual rents without delay or default.
2The 22 variable rent hotels are: Smile Hotel Kyoto Shijo, Hotel Wing
International Nagoya, Nest Hotel Sapporo Ekimae, The OneFive Osaka
Sakaisuji, Hotel Wing International Kobe Shin Nagata Ekimae, NestHotel Sapporo Odori, The OneFive Fukuoka Tenjin, Nest Hotel Osaka
Shinsaibashi, Smile Hotel Tokyo Asagaya, Nest Hotel Matsuyama, The
OneFive Okayama, Capsule Plus Yokohama, The OneFive Garden
Kurashiki, Nest Hotel Kumamoto, Valie Hotel Hiroshima, The OneFive
Tokyo Shibuya, Smile Hotel Nagano, Comfort Hotel Osaka
Shinsaibashi, HOTEL THE KNOT YOKOKAMA, Quintessa Hotel Ise
Shima, Quintessa Hotel Ogaki, and THE KNOT SAPPORO. Data for
Capsule Plus Yokohama is excluded from the above forecast because
the operator did not give consent to disclose forecasts.
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 theperiod
Details of the July 2024 Rental Income Forecast by Hotel(JPY million)
Hotel Name
Smile Hotel Kyoto Shijo
Nest Hotel Sapporo Ekimae
The OneFive Osaka Sakaisuji3

Fixed Rent/
Minimum Variable
Guaranteed Rent
Rent
38
41
3197
1131

Total
79128
42

Comfort Hotel Hamamatsu
Nest Hotel Sapporo Odori
The OneFive Fukuoka Tenjin
Nest Hotel Osaka Shinsaibashi
Comfort Hotel Central International
Airport
Smile Hotel Tokyo Asagaya
Nest Hotel Matsuyama
The OneFive Okayama
Comfort Hotel Kushiro
Comfort Hotel Suzuka
The OneFive Garden Kurashiki
Nest Hotel KumamotoValie Hotel Hiroshima
The OneFive Tokyo Shibuya
Hotel Sunshine Utsunomiya
Smile Hotel Nagano
HOTEL THE KNOT YOKOHAMA
Quintessa Hotel Ise Shima
Quintessa Hotel Ogaki
THE KNOT SAPPORO
Other1Total
155
27
3466

–59
29
98

55
86
63
165

151

–

151

61
36
62
18
15
39
25
29
47
64
6
68
20
15
74
284
1,284

79
42
9–––
37
38
75
–
33
96
35
6
83
112
1,008

141
78
71
18
15
40
63
67
123
64
39
165
56
22
157
397
2,293

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

 Retail: JPY 89 million of rental income from retail tenants at The
OneFive Osaka Sakaisuji, Hotel Wing International Kobe Shin Nagata
Ekimae, Smile Hotel Tokyo Asagaya, Nest Hotel Kumamoto, Hotel
Sunshine Utsunomiya, Comfort Hotel Osaka Shinsaibashi, HOTELTHE KNOT YOKOHAMA, and THE KNOT SAPPORO.

4OperatingExpenses

 Depreciation: JPY 469 million. Depreciation has been calculated using
the straight-line method.
 Property and city planning taxes: JPY 171 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.
 Rental expenses, Ichigo Hotel’s principal operating expense (other thandepreciation, see above), are calculated based on historical data
adjusted for anticipated expense variations.
 Actual operating expenses may differ significantly from theseassumptions due to unforeseeable factors.
 SG&A expenses: JPY 303 million for asset management fee and JPY
14 million for appraisal report costs.

Non-OperatingExpenses

 Interest expenses and other borrowing-related expenses: JPY 316million
 Amortization of share issuance expenses: JPY 3 million

Borrowings

 Total borrowings: JPY 32.47 billion as of July 31, 2024

Number ofShares Total 327,489 shares The forecast assumes there will be no additional new shares issued
through July 31, 2024

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 ofportfolio 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.

5