Ichigo Hotel (3463)

Ichigo Hotel January 2024 Fiscal Period
Corporate Presentation
March 15, 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

We would like to express our deepest condolences
to all those impacted by the January 1, 2024
earthquake in Ishikawa Prefecture, and our wishes
for the earliest and fullest possible recovery for all.

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

2

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.

January 2024 Results
Earnings Forecasts
 January 2024 Highlights
 July 2024 Forecast January 2024 Earnings Breakdown January 2025 Forecast Hotel Operating Results: Continued Hotel Earnings
Ichigo’s Commitment to ESG
Growth Ichigo Sustainability Policy
 RevPAR, ADR, & Occupancy Growth On Track Ichigo Climate Positive: CO2 Reduction > Hotel Operating Results: Limited Impact From End
Emissionsof Govt Leases & Travel Subsidy
 On Track Toward Achieving 2025 RE100 Target Growth Strategy: Driving Revenue via Rebranding Ichigo ESG – Environmental& Rent Contract Changes
 Ichigo ESG – Social Growth Strategy: Acquisition-Driven Growth Ichigo ESG – Governance
Leveraging Sponsor Support
Appendices Environmental Initiatives: Sustainability Initiatives
 Shareholder Program: Shareholder Discount Portfolio Details
Program Loan Details & Shareholder Composition
 Shareholder Program: Ichigo J.League
 Sponsor, Portfolio Map, & Others
Shareholder Program
Sustainability as a Key Management Priority
 Driving Revenue via Contract Renewals & Retenanting Portfolio Growth Opportunity via Ichigo Sponsor
Support© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

6

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

7

January 2024 Highlights
Results
Net Income
GrowthInitiatives
Environmental
Initiatives

JPY 974M+JPY 403M (+70.6%) YOY• Acquired 5 hotels (JPY 15B)
• New share issuance via third-party
allotment +72,515 shares

Details• Continued profit growth driven by hotel demand recovery,
growth initiatives• +JPY 238M (+32.5%) vs. Sep 2023 forecast• Leveraging sponsor support to drive growth• Portfolio size: JPY 69.8B (+27.5%)• GRESB Real Estate Assessment: 2 Stars• Received BELS certifications for 3 hotels • GRESB Public Disclosure Level: A• Completed renewable energy transition • BELS certifications: 4 hotels• CASBEE Sapporo: B-

JPY 7,937 (21 variable rent hotels)• Occupancy: 86.2% (+1.9% vs. 84.6% forecast)• ADR: JPY 9,205 (+12.0% vs. JPY 8,217 forecast)

JPY 2,061M+JPY 707M (+52.3%) YOY• Record NOI since listing• +JPY 248M (+13.7% vs. Sep 2023 forecast)• New loan: JPY 7B• New share issuance: JPY 8B• Refinancing: JPY 13.3B• Acquired 5 hotels (JPY 15B) via new loan & new shareissuance via third-party allotment (sponsor support)• Longer loan terms, Fixed interest rate %: 84.8%

Dividend

JPY 2,976+JPY 736 (+32.9%) YOY• +JPY 730 (+32.5%) vs. Sep 2023 forecast

NAV

JPY 142,561• Appraisal value increase• Unrealized Gains: JPY 6.9B, +JPY 3.6B (+111.7%) YOY

RevPARNOI
Financing+JPY 1,678 (+26.8%) YOY+JPY 5,686 (+4.2%) YOY

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

8

January 2024 Earnings Breakdown(JPY million)

Jan 2023
ActualJan 2024
Actual (A)Previous
Forecast(Sep 2023) (B)vs. Forecast(A) - (B)Operating Revenue

1,537

2,282

2,094

+188

Variable Rent

501

934

752

+182

Fixed Rent

983

1,222

1,224

-1

Other (Gains on Sales, etc.)

51

124

117

+7

755

1,032

1,007

+24

Repair & Maintenance

21

17

75

-58

Depreciation

373

463

473

-9

Operating Profit

781

1,250

1,086

+163

Recurring Profit

572

975

736

+238

Net Income

571

974

735

+238

Operating Expenses

Dividend

JPY 2,240

JPY 2,976

JPY 2,246+JPY 730

FFO

JPY 3,708

JPY 4,402

–

–

NOI

1,353

2,061

1,813

+248

Post-Depreciation NOI

980

1,598

1,339

+258

Capex

194

149

457

-308

Book Value

54,53969,527––

No. of Outstanding Shares

254,974

327,489

327,489–© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Major Variation Factors (vs. Initial Forecast)

Increase in Operating Revenue +188
Increase in variable rent +281
(18 of 22 hotels including Shibuya, Asagaya, Nest Shinsaibashi)
Decrease in variable rent -99(Kurashiki, KNOT YOKOHAMA, KNOT SAPPORO)
Increase in retail rent +11(Comfort Shinsaibashi, KNOT YOKOHAMA, KNOT SAPPORO)
Decrease in utility income, other revenue -4
Increase in Operating Expenses +24
Increase in AM fee +102
Decrease in repair expenses -58
Decrease in depreciation -9
Decrease in administrative expenses -7
Decrease in utility expense -3
Decrease in Non-Operating Expenses -74
Decrease in interest expenses -54
Decrease in borrowing-related expenses -19
Decrease in amortization of share issuance expenses -1
Reference
Dividend+32.5% vs. Sep 2023 forecast+32.9% (+JPY 736) YOY

9Hotel Operating Results

Continued Hotel Earnings Growth
Variable Rent Hotels (21 Hotels)
Aug 1, 2022
- Jan 31, 2023

Aug 1, 2023
- Jan 31, 2024

ChangeYOY

Room Revenue (JPY M)

3,614

4,640

+1,026+28.4%

Total Revenue (JPY M)

3,965

5,124

+1,159+29.2%

RevPAR (JPY)

6,259

7,937

+1,678+26.8%

Occupancy

87.1%

86.2%

-0.9%

-1.0%

ADR (JPY)

7,186

9,205

+2,019+28.1%

Total Portfolio (28 Hotels)
Aug 1, 2022
- Jan 31, 2023

Aug 1, 2023
- Jan 31, 2024

ChangeYOY

Room Revenue (JPY M)

4,749

5,906

+1,157+24.4%

Total Revenue (JPY M)

5,120

6,419

+1,299+25.4%

RevPAR (JPY)

6,017

7,411

+1,394+23.2%

Occupancy

83.4%

83.2%

-0.2%

-0.2%

ADR (JPY)

7,212

8,904

+1,692+23.5%

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.

10

RevPAR, ADR, & Occupancy Growth On Track
Exceeding Pre-Covid Levels & Re-entered Growth Trajectory
Variable Rent Hotels: RevPAR, Occupancy, & ADR (Jan 2020 – Jan 2024)■ RevPAR

■ ADR

(JPY)

Occupancy

87.1%
82.6%

84.1%

86.2%
83.7%
9,205
8,957

69.3%
7,664

7,937

61.4%
49.8%

6,447

48.3%
5,487

5,276

2,629

7,186

2,404

4,893

4,703

4,981
2,890

7,498

6,259

4,532

3,391

Jan
2020

Jul
2020

Jan
2021

Jul
2021

Jan
2022

Jul
2022

Jan
2023

Jul
2023

Jan
2024

RevPAR

6,447

2,629

2,404

2,890

3,391

4,532

6,259

7,498

7,937

Occupancy

84.1%

49.8%

48.3%

61.4%

69.3%

82.6%

87.1%

83.7%

86.2%

ADR

7,664

5,276

4,981

4,703

4,893

5,487

7,186

8,957

9,205

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.

11

Hotel Operating Results

Limited Impact From End of Govt Leases & Travel Subsidy
YOY by Region (Aug 2023 – Jan 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
+57%

Kobe

Chugoku/
Shikoku

Kyushu

+56%
+51%

+49%

+47%
+42% +42%

Osaka

+41%

+40%

+35%
+23% +23%
+11%
+1%

0%

+13%
+5%

+5%

0%

+10% +8%

+10%
+4%
-1%

-2%

+2%

-4%
-11%

-12% -13%(JPY)

RevPAR

11,004

7,961

12,904

5,896

5,597

7,416

6,030

5,739

7,771

Occupancy

91.7%

83.8%

97.4%

74.6%

64.3%

88.6%

75.0%

83.8%

88.5%

No. Hotels

4

3

3

6

1

3

1

5

2

% of Total
Portfolio Rental
Income

15%

10%

14%

17%

3%

13%

2%

15%

8%

Hotel Wing international Nagoya, Nest Hotel Kumamoto, Valie Hotel Hiroshima, and Hotel Sunshine Utsunomiya were leased out to local governments until March 2023. Preacquisition 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.

12

Growth Strategy

Driving Revenue via Rebranding & Rent Contract Changes
Realizing Impact of Rebranding & Rent Contract Renewals Conducted
During Covid− Capsule Plus Yokohama (rebranded during Jul 2021 fiscal period)
 Rebranded & changed to variable rent contract from fixed rent contract
 Jan 2024 rental income: +10.6%− Hotel Wing International Nagoya (contract renewal during Jan 2022 fiscal period) Reduced fixed rent, increased variable rent Jan 2024 rental income: +12.4%− Smile Hotel Nagano (rebranded during Jan 2023 fiscal period)
 Rebranded & changed to fixed + variable rent contract from fixed rent contract
 2X Rental income growth in Jan 2024
 Achieved target Jan 2024 rent set during rebrand planning phase− The OneFive Garden Kurashiki (rebranded during Jul 2023 fiscal period)
 Rebranded & increased fixed rent
 Jul 2024/Jan 2025 fixed rent rental income +5.2%
 Jul 2025/Jan 2026 fixed rent rental income +18.2%© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

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Growth Strategy

Acquisition-Driven Growth Leveraging Sponsor Support− New Share Issuance via Third Party Allotment (Incl. Sponsor) (Aug 2023)− Acquired 5 hotels (JPY 15B), Increased Portfolio Size (30 Hotels, JPY 69.8B)
 Driving portfolio stability via acquisitions of high-quality hotels, geographic diversification
 Acquired HOTEL THE KNOT YOKOHAMA, THE KNOT SAPPORO- Targeting higher room prices via sponsor-designed boutique hotels
 Driving Dividend Growth- Jul 2024: +JPY 81, Jan 2025: JPY +129
 Driving NAV Growth- Appraisal value as of Jan 31, 2024: +1.9% vs. Aug 2023 acquisition

Hotel Name

Comfort Hotel
Osaka Shinsaibashi(Ichigo Shinsaibashi
Building)

HOTEL THE
KNOT
YOKOHAMA

Quintessa Hotel
Ise Shima

Quintessa Hotel
Ogaki

THE KNOTSAPPOROJPY 3,700M

JPY 4,800M

JPY 610M

JPY 1,070M

JPY 4,900M

Exterior

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

14

Environmental Initiatives

Sustainability Initiatives (1)Achieved 100% renewable energy transition at all hotels− Completed renewable energy transition at 9 hotels− Purchased non-fossil certificates for 21 other hotels (Dec 2023)− Ongoing discussions with tenants of the 21 hotels that purchased non-fossil
certificates to transition to renewable energy
Renewable Energy Transition (as of January 31, 2024)

Completed
Renewable
EnergyTransition

Annual Energy Transition/Carbon Offset Forecast

CO2 Reduction c. 3,545 tons
Calculated as 0.429kg CO2 per kWh

23.3%
Purchased Non-Fossil
Certificates Tracking
Ichigo Power Plants

Achieved
100%

76.7%

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.

15

Environmental Initiatives

Sustainability Initiatives (2)Minimizing Environmental Impact of Ichigo Hotel-Owned Assets− Participated in GRESB Real Estate Assessment since 2021
 Awarded 2 Star GRESB rating Awarded Green Star designation 3 years in a row
 Awarded GRESB Public Disclosure A Level, up from last year’s B Level− 3 hotels received BELS in Jan 2024 (Total 4 hotels)
NameHotel Livemax
NihombashiHakozaki

Hotel Wing
International Kobe
Shin Nagata
EkimaeHotel Sunshine
Utsunomiya

The OneFive
Tokyo Shibuya

Exterior

Certification
Result− THE KNOT SAPPORO: CASBEE Sapporo (B-)© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

16

Shareholder Program

Shareholder Discount Program
Program Established to Express Gratitude to Ichigo Hotel Shareholders andAccelerate Hotel Industry Growth
Special Discount Rates (including hotels not owned by Ichigo Hotel)
Minacia Co., Ltd.
 Hotel Wing International

K.K. Hospitality Operations
 Smile Hotels, THE KNOTGreens Co., Ltd.
 Choice Hotels

 Special rate 12% lower than rates
on hotel website
 38 Hotel Wing International Hotels
located across Japan, from
Hokkaido to Kagoshima Special rate 10% lower than rates
on hotel website
 81 Smile Hotel and Hotel Emisia
brand hotels located across Japan,
from Hokkaido to Okinawa Special rate 10% or 13% lower thanrates on hotel website
 74 Comfort Hotel brand hotels
located across Japan, from
Hokkaido to Okinawa

Applicable Hotels
・Hotel Wing International Nagoya
・Hotel Wing International Kobe Shin
Nagata Ekimae

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

Applicable Hotels
・Comfort Hotel Hamamatsu
・Comfort Hotel Central International
Airport・Comfort Hotel Kushiro・Comfort Hotel Suzuka
・Comfort Hotel Osaka Shinsaibashi(Ichigo Shinsaibashi Building)© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

17

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 (82,000 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.
J.League 30th Anniversary Event(May 14, 2023)

Invited shareholders to participate inopening ceremony as flag bearers
and watch a special match

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

18

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

19

Driving Revenue via Contract Renewals & Re-tenanting
New Tenant at Comfort Hotel Osaka Shinsaibashi (Private Sauna)− Leased up vacant space (304m2, 92 tsubo)− Rent +19% vs. previous tenant, higher than surrounding area due to competitive
location− NOI +15.9% p.a. due to retail income increase

Return of Tenant at Nest Hotel Kumamoto− Re-entered contract with operator of rental conference rooms

Rent Contract Renewal at Smile Hotel Kyoto Shijo− Increasing fixed rent & driving stability
Private Sauna (Comfort Hotel Osaka Shinsaibashi)© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

20

Portfolio Growth Opportunity via Ichigo Sponsor Support
Sponsor Owns 12 Hotels (JPY 46B) Across Japan
Sponsor-Owned Hotels By Area
Kanto Koshinetsu

Yokohama

Tokyo

Utsunomiya, Tochigi

Shinjuku

Chugoku/
Shikoku

Hiroshima

KyushuArea

No. OfHotelsBook Value atAcquisition(JPY M)

Kanto
Koshienetsu

2

5,331

Tokyo

1

7,349

Kinki

1

5,322

Chugoku/
Shikoku

1

3,962

Kyushu7

23,940Total

1245,905

As of November 30, 2023

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

21

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

22

July 2024 Forecast
̶ Dividend +JPY 92, +3.4% vs. Previous Forecast
̶ Driving Financial Stability: Financing Cost to Increase due to Lengthening Loan
Maturity, Fixing Interest Rates(JPY million)
Jul 2023
Actual (A)Jul 2024
Previous
Forecast(Sep 2023)

Jul 2024
Revised
Forecast (B)vs. Forecast(B) - (A)Operating Revenue

1,796

2,372

2,394

+598

Variable Rent

756

967

977

+221

Fixed Rent

992

1,265

1,278

+286

Other (Gains on Sales, etc.)

47

139

138

+91

862

1,142

1,148

+285

Repair & Maintenance

31

60

45

+14

Depreciation

387

481

484

+97

Operating Profit

933

1,229

1,246

+312

Recurring Profit

722

894

924

+201

Net Income

721

893

923

+201

Dividend

JPY 2,831

JPY 2,728

JPY 2,820-JPY 11

RevPAR (Variable Rent Hotels)

JPY 6,948 1,3

JPY 7,525 2

JPY 7,972+JPY 1,024

Operating Expenses

NOI

1,589

2,052

2,087

+498

Post-Depreciation NOI

1,201

1,570

1,603

+401

551

541

415

-136

254,974

327,489

327,489+72,515

25

30

30

+5

Capex
No. Of Shares Outstanding
No. Of Hotels

Major Factors for Variation

Increase in Operating Revenue +598
Increase in variable rent +281
(17 of 22 hotels including KNOT YOKOHAMA, KNOT SAPPORO, Nest Shinsaibashi)
Decrease in variable rent -60(Valie Hiroshima, Kurashiki)
Increase in fixed rent +286
(KNOT SAPPORO, KNOT YOKOHAMA, Comfort Shinsaibashi)
Increase in retail rent +68(Comfort Shinsaibashi, KNOT YOKOHAMA, KNOT SAPPORO, Kumamoto)
Increase in utility income +19
Increase in other income +2
Increase in Operating Expenses +285
Increase in depreciation +97
Increase in AM fee +66
Increase in property tax +49
Increase in administrative expenses +22
Increase in insurance/management outsourcing fee +21
Increase in utility expenses +15
Increase in repair expenses +14
Increase in Non-Operating Expenses +109
Increase in interest expenses +94
Increase in borrowing-related expenses +18
Decrease in amortization of share issuance expenses +3
Decrease in amortization of bond issuance expenses -7
Reference
Dividend+3.4% vs. Sep 2023 forecast-0.4% YOY
July 2024 RevPAR breakdown: ADR JPY 9,047, Occupancy 88.1%
Notes
1 RevPAR for 16 variable rent hotels in July 2023
2 RevPAR for 21 variable rent hotels in July 2024
3 Presumed July 2023 RevPAR based on total 21 variable rent hotels including 5 newly
acquired hotels: JPY 7,498© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

23

January 2025 Forecast
̶ Operating Revenue +JPY 147M (Incl. Variable Rent JPY 67M)
̶ Renewal Renovations & Downtime Upon Contract-End at Some Hotels(JPY million)
Jan 2024
Actual (A)Jan 2025
Forecast (B)vs. Forecast(B) - (A)

Major Factors for Variation

Operating Revenue

2,282

2,429

+147

Variable Rent

934

1,001

+67

Fixed Rent

1,222

1,281

+59

124

146

+22

1,032

1,158

+126

Repair & Maintenance

17

40

+23

Depreciation

463

484

+21

Operating Profit

1,250

1,271

+21

Recurring Profit

975

931

-44

Net Income

974

930

-44

Dividend

JPY 2,976

JPY 2,842-JPY 134

RevPAR (21 Variable Rent Hotels)

JPY 7,937

JPY 8,060+JPY 123

NOI

2,061

2,128

+67

Post-Depreciation NOI

1,598

1,644

+46

149

710

+561

327,489

327,489

–

30

30

–

Other (Gains on Sales, etc.)
Operating Expenses

Capex
No. Of Shares Outstanding
No. Of Hotels

Increase in Operating Revenue +147
Increase in variable rent +107
(14 of 22 hotels including Shibuya, KNOT YOKOHAMA, KNOT SAPPORO)
Decrease in variable rent -40(Valie Hiroshima, Nagoya, Sapporo Ekimae)
Increase in fixed rent +83(KNOT SAPPORO, Kurashiki, KNOT YOKOHAMA)
Decrease in fixed rent -25(Valie Hiroshima, Sapporo Ekimae, Sapporo Odori, Kyoto)
Increase in retail rent +18(Comfort Shinsaibashi, KNOT SAPPORO)
Increase in utility income +2
Increase in Operating Expenses +125
Increase in property tax +49
Increase in administrative expenses +25
Increase in repair expenses +23
Increase in depreciation +21
Increase in insurance/management outsourcing fee +3
Increase in utility expenses +3
Decrease in AM fee -1
Increase in Non-Operating Expenses +63
Increase in interest expenses +72
Decrease in borrowing-related expenses -8
Reference
Dividend-4.5% YOY
January 2025 RevPAR breakdown: ADR JPY 9,312, Occupancy 86.6%© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

24

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

25

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.

26

Ichigo Climate Positive: CO2 Reduction > Emissions
Ongoing Ichigo Clean Energy Production Growth & Renewable Energy
Transition & Carbon Offsets
CO2 Reduction vs. CO2 Emissions(tons)■ Total Ichigo Power Plant CO2 Reduction1■ Total Ichigo CO2 Emissions (Scope 1+2)

CO2 Emissions
Reduction Measures

Impact ofReduction
Measures-250-7,07098,647

95,47875,42575,80883,41259,445-34,470

54,80326,000FY20/2

FY21/2CO2 Reduction Base Year

Start RE100

FY22/2

Ongoing Initiatives
Switch to Renewable
Energy28,900 tons
Decreased Energy
Consumption
870 tons
New Initiatives
Non-Fossil Certificate
Tracking for Ichigo Power
Plants4,700 tons

FY23/2

1 Calculated using each EPCO’s adjusted CO2 emission factor disclosed by the Ministry of Environment as a fixed constant for each period© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

27

On Track Toward Achieving 2025 RE100 Target
Ichigo Ranked No. 1 in Nikkei GX 500 Ranking for Information Disclosure &Emissions Management & Reduction
Ichigo RE100 Progress

100%
RE100 Target: 2025
FY24/2 Renewable Energy Transition Impact

85%
FY24/2
Target83%

33%
Non-Fossil Certificate
Tracking for Ichigo
Power Plants(+11%
vs. FY24/2 H1)Renewable
EnergySwitch50%

CO2 Reduction

35,000 tons p.a.

CO2 Emissionsof Cars

Renewable
EnergySwitch× 15,200 cars p.a.

Includes all Ichigo, Ichigo Hotel, and Ichigo Office (8975)
assets© 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+

Annual Power Production

222,927,029 kWh
Equivalent to annual
Energy consumption of
51,600 households
Annual CO2 Reduction

Increase= Tenant
Satisfaction

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

98,647,576 kg
Equivalent to annual
CO2 emission of
43,000 cars
* Mar 2022 – Feb 2023 Actuals

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 9 hotels• Purchased non-fossil
certificates for 21 hotels

Certifications• 23 (20 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 February 29, 2024)© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

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

Chisato Kiyoyama(Track and Field)

Miyako City
Retail Asset / Miyazaki
www.miyakocity.com

OnlineIn-Person

Hiromi Miyake(Weightlifting)

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

Best Practice GovernanceREIT 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

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• Majority of AMC Directors (2 of 4) 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

Only 3 J-REITS (out of 58), including Ichigo Hotel (3463) and Ichigo Office (8975),
have both an Asset Management Company (AMC) board that has a majority of Independent
Directors and whose AMC President does NOT serve as the Executive Director of the REIT
Independence of the Investment Corporation From AMC

Independent Directors at AMC

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

Only 3 Asset Management Companies have any
Independent Directors

All Ichigo Hotel Directors are Independent

2 of 4 Ichigo Investment Advisors' Directors
are Independent* Based on research as of February 29, 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

Portfolio Lease Details(as of January 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 2023 Actual)

JPY 443M(20.5%)

JPY 115M(5.3%)

JPY 1,553M(72.0%)

Not
Available1

JPY 2,157M(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) 2• HOTEL THE KNOT YOKOHAMA2• Quintessa Hotel Ise Shima2• Quintessa Hotel Ogaki2• THE KNOT SAPPORO2• 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–

2 Hotels acquired on August 25, 2023

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

33

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

Hotel

Hotel Name

Lease Terms

Location

Leasable Area(m2)

Acquisition
Price(JPY M)

Book Value(JPY M)(A)

Jan 2024 Appraisal
Value(JPY M)(B)

Cap Rate (%)

Unrealized
Gains(JPY M)(B) - (A)

A-1

Nest Hotel Sapporo Ekimae

Variable + Fixed Rent

Sapporo5,734.93

2,160

2,141

2,730

5.0

+588

A-2

Nest Hotel Sapporo Odori

Variable + Fixed Rent

Sapporo5,638.78

1,450

1,399

1,920

4.9

+520

A-3

Comfort Hotel Kushiro

Fixed Rent

Kushiro, Hokkaido

3,180.58

300

267

369

5.4

+101

A-4

THE KNOT SAPPORO

Variable + Fixed Rent

Sapporo5,153.60

4,900

4,898

5,320

4.3

+421
-145

B-1

Capsule Plus Yokohama

B-2

Smile Hotel Nagano

Variable Rent

Yokohama

1,183.26

1,490

1,545

1,400

4.6

Variable + Fixed Rent

Nagano1,921.45

670

723

748

4.9

B-3

Hotel Sunshine Utsunomiya+24

Fixed Rent

Utsunomiya, Tochigi

5,267.16

2,200

2,261

2,430

4.9

+168

B-4

HOTEL THE KNOT YOKOHAMA

Variable + Fixed Rent

Yokohama

5,794.75

4,800

4,800

5,790

4.2

+989

C-1

Smile Hotel Tokyo Asagaya

Variable + Fixed Rent

Tokyo

2,721.70

3,910

3,810

4,880

4.2

+1,069C-3

Hotel Livemax Nihombashi-Hakozaki

Fixed Rent

Tokyo

853.00

1,360

1,242

1,400

4.5

+157

C-4

The OneFive Tokyo Shibuya

Variable + Fixed Rent

Tokyo

1,470.52

3,700

3,778

4,340

3.4

+561

D-1

Comfort Hotel Hamamatsu

Fixed Rent

Hamamatsu, Shizuoka

4,173.92

1,550

1,357

1,790

5.1

+432

D-2

Hotel Wing International Nagoya

Variable + Fixed Rent

Nagoya5,255.66

2,670

2,680

2,180

4.6

-500

D-3

Comfort Hotel Central International Airport

Fixed Rent

Tokoname, Aichi

11,599.63

5,308

5,126

5,930

4.0

+803

D-4

Comfort Hotel Suzuka

Fixed Rent

Suzuka, Mie

2,186.65

300

281

360

5.0

+78

D-5

Quintessa Hotel Ise Shima

Variable + Fixed Rent

Shima, Mie

11,523.25

610

608

650

5.2

+41

D-6

Quintessa Hotel Ogaki

Variable + Fixed Rent

Ogaki, Gifu

7,883.29

1,070

1,065

1,150

5.1

+84

E-1

Smile Hotel Kyoto Shijo

Variable + Fixed Rent

Kyoto

4,891.84

4,480

4,494

3,790

4.3

-704

E-3

The OneFive Osaka Sakaisuji

Variable + Fixed Rent

Osaka

3,568.32

1,630

1,742

1,280

4.6

-462

E-4

Hotel Wing International Kobe Shin Nagata Ekimae

Variable + Fixed Rent

Kobe

4,540.90

1,490

1,354

1,900

4.5

+545

E-5

Nest Hotel Osaka Shinsaibashi

Variable + Fixed Rent

Osaka

8,057.26

7,600

7,461

5,970

4.3

-1,491

E-6

Comfort Hotel Osaka Shinsaibashi(Ichigo Shinsaibashi Building)

Variable + Fixed Rent

Osaka

5,760.79

3,700

3,701

4,010

4.1

+308

F-1

The OneFive Okayama

Variable + Fixed Rent

Okayama

5,543.70

1,200

1,172

1,960

5.6

+787

F-2

Nest Hotel Matsuyama

Variable + Fixed Rent

Matsuyama, Ehime

6,671.94

1,610

1,613

2,040

5.5

+426

F-3

Urbain Hiroshima Executive

Fixed Rent

Hiroshima

2,756.20

1,800

1,735

2,020

5.3

+284

F-4

The OneFive Garden Kurashiki

Variable + Fixed Rent

Kurashiki, Okayama

3,964.19

1,725

2,121

2,440

4.8

+318

F-5

Valie Hotel Hiroshima

Variable + Fixed Rent

Hiroshima

4,332.50

1,500

1,532

1,760

4.8

+227

F-6

Washington Hotel Plaza Shimonoseki Eki Nishi

Fixed Rent

Shimonoseki, Yamaguchi

5,709.35

1,080

1,024

1,220

4.8

+195

G-1

The OneFive Fukuoka Tenjin

Variable + Fixed Rent

Fukuoka

1,910.94

1,380

1,429

2,300

4.2

+870

G-3

Nest Hotel Kumamoto

Variable + Fixed Rent

Kumamoto

6,404.36

2,220

2,152

2,440

5.2

+287

145,654.42

69,86369,52776,517

4.5+6,989Total (30 Hotels)© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

34

January 2024 Fiscal Period Individual Hotel Operating Results (1)(year-on-year)
Hotel
No.

Hotel Name

Lease Terms

Location

No. of
Guest
Rooms

January 2024 (August 2023 - January 2024)
RevPAR (JPY)

Occupancy (%)

ADR (JPY)

Revenue (JPY M)

A-1

Nest Hotel Sapporo Ekimae

Variable + Fixed Rent

Sapporo162

10,709(+47.7%)96.0%(+3.3%)

11,161(+43.0%)385.2(+52.3%)

A-2

Nest Hotel Sapporo Odori

Variable + Fixed Rent

Sapporo

121

9,996

(+29.1%)87.9%(-3.9%)

11,379(+34.3%)245.4(+24.5%)

A-3

Comfort Hotel Kushiro

Fixed Rent

Kushiro, Hokkaido

126

6,446

(+9.9%)

81.5%(-0.7%)

7,909(+10.7%)154.8(+7.0%)A-4

THE KNOT SAPPORO

Variable + Fixed Rent

Sapporo140

16,317(+63.6%)99.1%(+1.7%)

16,467(+60.9%)447.6(+56.7%)

B-2

Smile Hotel Nagano

Fixed Rent

Nagano76

7,632(+11.2%)

97.6%(+4.0%)

7,824(+6.9%)

111.1(+59.1%)

B-3

Hotel Sunshine Utsunomiya

B-4

HOTEL THE KNOT YOKOHAMA

Fixed Rent

Utsunomiya, Tochigi

160

4,687

(-42.3%)68.0%(-30.7%)

6,891(-16.7%)152.2(-36.7%)

Variable + Fixed Rent

Yokohama

145

11,747(+6.8%)

94.0%(-1.5%)

12,490(+8.4%)

341.4(+5.5%)

C-1 Smile Hotel Tokyo Asagaya

Variable + Fixed Rent

Tokyo

112

11,355(+31.7%)99.0%(+1.2%)

11,473(+30.2%)236.0(+31.4%)C-4 The OneFive Tokyo Shibuya

Variable + Fixed Rent

Tokyo

72

18,720(+59.9%)99.5%(+0.6%)

18,807(+59.0%)252.5(+60.9%)D-1 Comfort Hotel Hamamatsu

Fixed Rent

Hamamatsu, Shizuoka

196

5,929

(+24.0%)82.6%(+4.3%)

7,179(+19.0%)213.8(+24.0%)

Variable + Fixed Rent

Nagoya224

4,906(-9.1%)

69.6%(-29.6%)

7,044(+29.1%)214.5(-3.5%)

D-3 Comfort Hotel Central International Airport

Fixed Rent

Tokoname, Aichi

350

6,806

(+28.6%)

72.1%(+16.6%)9,434(+10.3%)444.0(+29.1%)D-4 Comfort Hotel Suzuka

Fixed Rent

Suzuka, Mie

105

5,140

(+2.3%)

77.8%(+0.8%)

6,607(+1.5%)

100.1(+1.7%)

D-5 Quintessa Hotel Ise Shima

Variable + Fixed Rent

Shima, Mie

150

6,098

(+3.6%)

69.5%(+11.8%)8,774(-7.4%)

253.0(+4.3%)

D-6 Quintessa Hotel Ogaki

Variable + Fixed Rent

Ogaki, Gifu

98

5,365

(-4.6%)

83.2%(-6.7%)

6,446(+2.3%)

204.6(+26.2%)

E-1

Smile Hotel Kyoto Shijo

Variable + Fixed Rent

Kyoto

144

5,597

(+56.5%)64.3%(+5.1%)

8,707(+48.9%)156.7(+54.5%)

E-3

The OneFive Osaka Sakaisuji

Variable + Fixed Rent

Osaka

130

6,146

(+30.0%)97.3%(+0.3%)

6,315(+29.6%)147.5(+29.9%)E-4

Hotel Wing International Kobe Shin Nagata Ekimae

Variable + Fixed Rent

Kobe

133

6,030

(-1.0%)

75.0%(+3.6%)

8,044(-4.4%)

164.2(+0.3%)

E-5

Nest Hotel Osaka Shinsaibashi

Variable + Fixed Rent

Osaka

302

7,121

(+54.6%)89.2%(+14.2%)

7,986(+35.3%)397.4(+50.6%)

E-6

Comfort Hotel Osaka Shinsaibashi(Ichigo Shinsaibashi Building)

Variable + Fixed Rent

Osaka

214

8,605

(+72.4%)

82.5%(+11.9%)10,424(+54.0%)340.7(+72.0%)F-1

The OneFive Okayama

Variable + Fixed Rent

Okayama

208

5,782

(+19.1%)97.8%(-1.3%)

5,911(+20.7%)228.0(+19.0%)

F-2

Nest Hotel Matsuyama

Variable + Fixed Rent

Matsuyama, Ehime

190

5,651

(+33.1%)

92.6%(+32.1%)6,104(+0.8%)

253.1(+38.7%)D-2 Hotel Wing International Nagoya

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.

35

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

Hotel Name

Lease Terms

Location

No. of
Guest
Rooms

January 2024 (August 2023 - January 2024)
RevPAR (JPY)

Occupancy (%)

ADR (JPY)

Revenue (JPY M)

F-3

Urbain Hiroshima Executive

Fixed Rent

Hiroshima

171

5,117

(+43.9%)67.8%(+14.8%)7,544(+25.3%)161.0(+43.9%)F-4

The OneFive Garden Kurashiki

Variable + Fixed Rent

Kurashiki, Okayama

107

8,168

(+18.9%)96.3%(+18.3%)8,485(+0.5%)

171.8(+41.8%)

F-5

Valie Hotel Hiroshima

Variable + Fixed Rent

Hiroshima

171

4,890

(-34.8%)65.0%(-35.0%)7,519(+0.3%)

155.3(-34.4%)

G-1 The OneFive Fukuoka Tenjin

Variable + Fixed Rent

Fukuoka

77

11,569(+49.2%)97.9%(+0.5%)

11,814(+48.5%)171.7(+48.5%)G-3 Nest Hotel Kumamoto

Variable + Fixed Rent

Kumamoto

201

6,316

(+26.3%)84.8%(-15.2%)

7,446(+48.9%)247.0(+33.5%)

Other

455

Variable Rent Hotels

3,346

7,937

(+26.8%)86.2%(-1.0%)

9,205(+28.1%)

5,124.0(+29.2%)

Fixed Rent Hotels

1,394

5,963

(+11.3%)75.0%(+2.2%)

7,951(+9.0%)

1,294.0(+12.2%)

Total

4,740

7,411

(+23.2%)83.2%(-0.2%)

8,904(+23.5%)

6,419.0(+25.4%)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

Individual Hotel Financials (1)(JPY thousand)
A-1
Total

A-2

Nest Hotel
SapporoEkimaeA-3

Nest Hotel
Comfort Hotel
Sapporo Odori
Kushiro

A-4

B-2

B-3

B-4

C-1

C-4

D-1

D-3

THE KNOTSAPPORO

Smile Hotel
NaganoHotelSunshine
Utsunomiya

HOTEL THE
KNOT
YOKOHAMA

Smile HotelTokyo
Asagaya

The OneFive
Tokyo
ShibuyaComfort Hotel
Hamamatsu

D-4

Comfort Hotel
CentralComfort HotelInternational
SuzukaAirport(A) Rental Income

2,282,212

131,174

80,001

18,41996,43941,85964,263

117,350132,011

123,795

55,361

151,441

15,442

Fixed Rent

1,222,928

32,392

26,083

18,41938,454

5,852

57,79956,67059,282

44,93255,361

151,441

15,442

Variable Rent

934,780

98,781

53,918–57,98536,006–

60,68072,72878,863–––

Other Rent

124,503

–

–

–

–

–

6,463

–

–

–

–

–

–

(B) Rental Expenses

220,780

7,540

10,342

5,446

1,373

2,263

6,102

2,504

7,500

6,372

3,725

14,4683,541

Outsourcing
Fees

29,762

600

600

900

679

480

780

940

2,556

600

600

570

540

Insurance

6,172

232

247

128

197

73

232

263

134

88

147

431

74

RepairExpenses

17,705

1,044

665

–

99

90

–

941

653

235

287

515

789

Taxes

126,861

5,250

8,406

4,007

–

1,254

4,727

–

3,747

5,088

2,420

12,541

1,729

Other
Expenses

40,278

413

424

410

396

366

362

358

408

360

270

408

408

NOI
(A) - (B)

2,061,431

123,633

69,658

12,973

95,066

39,59558,161

114,846

124,511

117,423

51,636

136,973

11,901(D) Depreciation

463,319

17,46918,041

5,817

21,008

7,248

4,560

16,05323,016

8,110

15,756

33,775

4,553

1,598,111

106,164

51,617

7,155

74,05832,34753,601

98,793

101,494

109,31335,879103,198

7,348

(C)

Net Rental Income(C) - (D)* 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, 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.

37

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

D-6

Quintessa
Quintessa
Hotel Ise
Hotel Ogaki
Shima

E-1

E-3

E-5

E-6

F-1

F-2

F-4

F-5

G-1

G-3

Smile
Hotel
Kyoto
Shijo

The
OneFive
Osaka
Sakaisuji

Nest Hotel
Osaka
Shinsaibashi

Comfort Hotel Osaka
Shinsaibashi(Ichigo Shinsaibashi
Building)

The
OneFive
Okayama

Nest Hotel
MatsuyamaThe
OneFive
GardenKurashiki

Valie Hotel
Hiroshima

The
OneFive
FukuokaTenjinNest Hotel
Kumamoto

OtherA) Rental Income

37,202

29,28957,62945,514

166,724

65,551

90,571

87,62928,383

59,237

76,20587,680423,026

Fixed Rent

17,997

13,65834,644

17,311

65,48759,07072,23335,71722,48637,15940,89527,348

216,780

Variable Rent

19,205

15,63022,98428,202

101,237

6,480

18,33751,9085,896

21,47735,31060,33288,809

–

–

–

–

–

–

–

3

–

600

–

–

117,437B) Rental Expenses

2,046

1,656

7,233

6,536

18,621

9,060

5,523

8,910

6,329

6,178

4,885

7,264

65,353

Outsourcing
Fees

940

940

600

915

1,200

7,579

600

720

600

720

600

780

3,720

Insurance

400

360

201

155

363

296

227

306

161

198

86

271

890

RepairExpenses

346

–

690

1,496

914

874

521

3,743

1,072

585

116

820

1,205

–

–

5,381

3,603

15,735

–

3,758

3,731

4,132

4,306

3,718

4,983

28,337

358

355

359

367

408

309

416

409

363

367

364

409

31,199NOI(A) - (B)35,156

27,63250,39638,977148,10356,49185,04878,71822,05353,05871,32080,416357,673(D) Depreciation

9,489

14,826

18,34910,86636,16910,535

17,902

20,52523,42823,426

8,799

22,356

71,233

25,667

12,80632,046

28,111111,933

45,956

67,14558,193-1,37529,63262,52158,059286,439

Other Rent

Taxes
Other
ExpensesC)

Net Rental Income(C) - (D)* 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, 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

Fixed/Variable Rent, RevPAR, ADR, & Occupancy Trends
Fixed/Variable Rent

(JPY thousand)Jan 2023
Rent

Ratio

Jan 2024
Rent

Ratio

Ratio

1,029,850

67.0%

1,021,552

56.9%

1,311,097

57.4%

Fixed Rent from Operators

998,05964.9%

992,21855.2%

1,222,928

53.6%

Other (Rent from Retail Tenants)

31,7902.1%

29,333

1.6%

88,168

3.9%

Variable Rent

487,29131.7%

756,45842.1%

934,780

41.0%

Other (Utility Income)

20,0591.3%

18,5351.0%

36,335

1.6%

Total

1,537,201

100%

1,796,545

100%

2,282,212

100%

Rent

Fixed

Jul 2023
Rent

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
Feb 2023

Mar 2023

Apr 2023

May 2023

Jun 2023

Jul 2023

Aug 2023

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

Oct 2023

Nov 2023

Dec 2023

Jan 2024

39

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

SapporoAccess5-minute walk from
Sapporo Station on
Sapporo City Metro
Namboku LineOperator

Nest Hotel Japan
Corporation

Guest Rooms

162

AcquisitionPrice

JPY 2.16B

ADR(right)Operating Results (Feb 2023 – Jan 2024)

RevPAR(right)Occupancy(left)(JPY)

100%

25,00080%

20,00060%

15,00040%

10,000

20%

5,000

0%

0
Feb 2023

May 2023

Aug 2023

Nov 2023

A-2 Nest Hotel Sapporo Odori
Location

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

Nest Hotel Japan
Corporation

ADR(right)Operating Results (Feb 2023 – Jan 2024)

RevPAR(right)Occupancy(left)(JPY)

100%

25,00080%

20,00060%

15,00040%

10,0005,000

Guest Rooms

121

20%

AcquisitionPrice

JPY 1.45B

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

May 2023

Aug 2023

Nov 2023

40

Variable Rent Hotel Details
A-3 THE KNOT SAPPORO
Location

SapporoAccess2-minute walk from
Susukino Station on
Sapporo Municipal
Subway Namboku
Line

ADR
(right)Operating Results (Feb 2023 – Jan 2024)

RevPAR(right)Occupancy(left)(JPY)

100%

30,00080%

24,00060%

18,000

OneFive Hotels Inc.

40%

12,000

Guest Rooms

140

20%

6,000

AcquisitionPrice

JPY 4.90B

0%Operator0
Feb 2023

May 2023

Aug 2023

Nov 2023* 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.

41

Variable Rent Hotel Details
B-2 Smile Hotel Nagano
Location

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

Operator

K.K. Hospitality
Operations

Guest Rooms

76

AcquisitionPrice

JPY 670M

ADR(right)Operating Results (Feb 2023 – Jan 2024)

RevPAR(right)Occupancy(left)(JPY)

100%

10,000

80%

8,000

60%

6,000

40%

4,000

20%

2,000

0%

0
Feb 2023

May 2023

Aug 2023

Nov 2023* Closed for rebranding from December 12, 2022 to February 28, 2023. Reopened in March 2023.

B-4 HOTEL THE KNOT YOKOHAMA
ADR(right)

RevPAR(right)Occupancy(left)

Location

Yokohama

Access5-minute walk from JR
Yokohama Station100%

15,00080%

12,000K.K. Hospitality
Operations

60%

9,000

40%

6,000

20%

3,000

Operating Results (Feb 2023 – Jan 2024)(JPY)

Operator
Guest Rooms

145

AcquisitionPrice

JPY 4.8B

00%Feb 2023

May 2023

Aug 2023

Nov 2023* 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.

42

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

Suginami-ku, Tokyo

Access1-minute walk from
Asagaya Station on JR
Chuo and Sobu Lines

Operator
Guest Rooms

RevPAR(right)Occupancy(left)(JPY)

100%

15,00080%

12,00060%

9,000

K.K. Hospitality
Operations

40%

6,000

20%

3,000

112

0%

0
Feb 2023

Acquisition
Price

ADR
(right)Operating Results (Feb 2023 – Jan 2024)

May 2023

Aug 2023

Nov 2023

JPY 3.9B

C-4 The OneFive Tokyo Shibuya
Location

Shibuya-ku, Tokyo

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

Operator
Guest Rooms

OneFive Hotels Inc.

ADR
(right)Operating Results (Feb 2023 – Jan 2024)

RevPAR(right)100%

25,00080%

20,00060%

15,00040%

10,000

20%

5,000

72
0

0%

AcquisitionPrice

Occupancy(left)(JPY)

Feb 2023

May 2023

Aug 2023

Nov 2023

JPY 3.7B© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

43

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

ADR
(right)Operating Results (Feb 2023 – Jan 2024)

RevPAR(right)Occupancy(left)(JPY)

100%

10,000

80%

8,000

60%

6,000

Minacia Co., Ltd.

40%

4,000

Guest Rooms

224

20%

2,000

AcquisitionPrice

JPY 2.67B

0%Operator0
Feb 2023

May 2023

Aug 2023

Nov 2023* Aichi Prefecture has temporarily leased all rooms of Hotel Wing International until March 31, 2023.

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 (Feb 2023 – Jan 2024)

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

12,50080%

10,000

60%

7,500

40%

5,000

20%

2,500

0%

0
Feb 2023

May 2023

Aug 2023

Nov 2023

JPY 6.10B* 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.

44

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 LineADR
(right)Operating Results (Feb 2023 – Jan 2024)

RevPAR(right)Occupancy(left)(JPY)

Operator

Core Global
Management Co., Ltd.

Guest Rooms

98

AcquisitionPrice

JPY 1.07B

100%

10,000

80%

8,000

60%

6,000

40%

4,000

20%

2,000

0%

0
Feb 2023

May 2023

Aug 2023

Nov 2023* 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 (Feb 2023 – Jan 2024)

RevPAR(right)Occupancy(left)(JPY)

100%

15,00080%

12,000

60%

9,000

40%

6,000

20%

3,000

0%

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

May 2023

Aug 2023

Nov 2023

45

Variable Rent Hotel Details
E-3 The OneFive Osaka Sakaisuji
Location

Osaka

Access5-minute walk from
Sakaisuji-Hommachi
Station on Osaka
Municipal Subway
Chuo LineOperator

OneFive Hotels Inc.

Guest Rooms

130

AcquisitionPrice

JPY 1.63B

ADR(right)Operating Results (Feb 2023 – Jan 2024)

RevPAR(right)Occupancy(left)(JPY)

100%

10,000

80%

8,000

60%

6,000

40%

4,000

20%

2,000

0%

0
Feb 2023

May 2023

Aug 2023

Nov 2023

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 (Feb 2023 – Jan 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
Feb 2023© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

May 2023

Aug 2023

Nov 2023

46

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 (Feb 2023 – Jan 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

Operator0%0
Feb 2023

May 2023

Aug 2023

Nov 2023

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 LineADR
(right)Operating Results (Feb 2023 – Jan 2024)

RevPAR(right)Occupancy(left)(JPY)

100%

15,00080%

12,00060%

9,000Greens Co., Ltd.

40%

6,000

Guest Rooms

214

20%

3,000

AcquisitionPrice

JPY 3.70B

Operator0%0
Feb 2023

May 2023

Aug 2023

Nov 2023* 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.

47

Variable Rent Hotel Details
F-1 The OneFive Okayama
Location

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

ADR
(right)Operating Results (Feb 2023 – Jan 2024)

RevPAR(right)Occupancy(left)(JPY)

100%

10,000

80%

8,000

60%

6,000

OneFive Hotels Inc.

40%

4,000

Guest Rooms

208

20%

2,000

AcquisitionPrice

JPY 1.20B

Operator00%
Feb 2023

May 2023

Aug 2023

Nov 2023

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 (Feb 2023 – Jan 2024)

RevPAR(right)Occupancy(left)(JPY)

100%

10,000

80%

8,000

60%

6,000

40%

4,000

20%

2,000

0%

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

May 2023

Aug 2023

Nov 2023

48

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

Kurashiki, Okayama

Access8-minute walk from
Kurashiki Station on
JR Sanyo Main Line

RevPAR(right)ADR(right)Operating Results (Feb 2023 – Jan 2024)

Occupancy(left)(JPY)100%

12,50080%

10,00060%

7,500

OneFive Hotels Inc.

40%

5,000

Guest Rooms

107

20%

2,500

AcquisitionPrice

JPY 1.73B

0%Operator0
Feb 2023

May 2023

Aug 2023

Nov 2023* Closed for renovations during January and February 2023. Reopened in March 2023.

F-5 Valie Hotel Hiroshima
Location

Hiroshima

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

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

12,50080%

10,00060%

7,500

The Court Co., Ltd.

40%

5,000

Guest Rooms

171

20%

2,500

AcquisitionPrice

JPY 1.50B

0%Operator0
Feb 2023

May 2023

Aug 2023

Nov 2023* 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.

49

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 (Feb 2023 – Jan 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
Feb 2023

May 2023

Aug 2023

Nov 2023

G-3 Nest Hotel Kumamoto
Location

Kumamoto

100%

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

Occupancy(left)(JPY)
10,000

80%

8,000

60%

6,000

Nest Hotel Japan
Corporation

40%

4,000

Guest Rooms

201

20%

2,000

AcquisitionPrice

JPY 2.22B

0%Operator

ADR(right)Operating Results (Feb 2023 – Jan 2024)

RevPAR(right)0
Feb 2023

May 2023

Aug 2023

Nov 2023* Kumamoto Prefecture temporarily leased all rooms of the Nest Hotel Kumamoto until March 31, 2023.

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

50

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

51

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

171

AcquisitionPrice

JPY 1.80B

Guest Rooms

238

AcquisitionPrice

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

52

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

53

Stable Financial Base
Outstanding Loan Balance
Jan 31, 2022
AmountJul 31, 2022

Jan 31, 2023

Jul 31, 2023

Jan 31, 2024

JPY 25.47B

JPY 25.47B

JPY 25.47B

JPY 25.47B

JPY 32.47B

Long-Term Loan Ratio

72.5%

70.7%

63.7%

46.0%

84.8%

Fixed Rate Ratio

70.7%

70.7%

63.7%

46.0%

84.8%

Average Interest Rate

0.77%

0.77%

0.76%

0.70%

1.01%

Average Remaining
Maturity

1.6 years

1.1 years

1.0 years

0.7 years

2.7 years

LTV (Total Assets Basis)

42.9%

42.9%

42.6%

43.1%

43.4%

Distribution of Loan Maturities(JPY M)

Fixed Rate
Floating Rate

7,170

4,950
8,200

2,220
Jul 2024

3,500

3,000

Jan 2025

3,300

2,000
Jul 2025

Jan 2026

Jul 2026

3,500
1,800

Jan 2027

Jul 2027

Jan 2028© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Jul 2028

Jan 2029

Jul 2029

Jan 2030
54

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 29, 2024

Term Loan 10

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

2,220

Fixed

0.75450%

April 25, 2019

April 30, 2024

(as of January 31, 2024)

Lender Composition

Term Loan 11

SMBC, Mizuho, SBI Shinsei, Resona, Aozora

1,500

Fixed

0.73575%

July 19, 2019

November 29, 2024

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 20

SMBC

450

Variable

0.57000%

February 28, 2023

February 29, 2024

Aozora2%

Fukuoka3%
Nishi-Nippon
City
3%
Resona
10%

SMBC
39%

Shinsei
12%

Term Loan 21

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

4,500

Variable

0.57000%

February 28, 2023

February 29, 2024

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

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

Mizuho31%

Fixed vs. Floating

Total Borrowings

32,470

Average 1.01%

Variable
15.2%

Average Remaining Loan Term 2.7 years
Fixed*
84.8%* Includes interest fixed via swaps© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

55

Shareholder Composition
By Number of Shares Held

Major Shareholders (as of January 31, 2024)
Name
1 Ichigo Trust

No. OfSharesShare

59,08718.0%

The Master Trust Bank of Japan,
2
Trust Account45,314

13.8%

Custody Bank of Japan, Ltd.,
Trust Account44,44913.6%

3

4 Ichigo Inc. (Sponsor)
5

Nomura Trust & Banking Co., Ltd.,
Investment Trust Account6 Ichigo Trust Pte. Ltd.

29,4209.0%

12,238

3.7%

10,908Foreign Corporations & Individuals
Non-Financial Domestic Corporations

Domestic Financial Institutions
Domestic Individuals

38,686(15.2%)

32,214(12.6%)

13,328(5.2%)

16,789(6.6%)

105,692(41.5%)

3,456

1.1%

8 MORGAN STANLEY & CO. LLC

2,405

0.7%

110,312(43.3%)

113,778(34.7%)

97,268(38.1%)

95,659(37.5%)(Outstanding Shares)

Jan 2023(254,974 shares)

Jul 2023(254,974 shares)

91,436(27.9%)

9 Fuji-Izu Japan Agricultural Cooperatives

2,000

0.6%

10 Morgan Stanley MUFG Securities Co., Ltd.

1,821

0.6%
64.5%

Jan 2024(327,489 shares)

By Number of Shareholders
Jan 31, 2023

211,098

36,924(11.3%)

3.3%

7 Individual Investor

Total

85,351(26.1%)

Jul 31, 2023

Jan 31, 2024

Shareholders Shareholders Shareholders Share
Domestic Individuals
Domestic Financial Institutions

13,93228

14,10432

13,66235

City banks, trust banks

3

4

4

–

Regional banks
Other (including securities companies)

–
25

–
28

–
31

–
0.2%

185
146

187
132

192
134

1.4%
1.0%

14,291

14,455

14,023100%

Non-Financial Domestic Corporations
Foreign Corporations & Individuals
Total© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

97.4%
0.2%

56

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

57

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 3 hotels

2025

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

58

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 January 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

59

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)
Ichigo(TSE Prime 2337)

Ichigo Hotel (3463)

AssetManagement

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.

Ichigo Office (8975)
Ichigo Green (9282)

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 Investment Advisors

Sustainable
Real Estate

Ichigo Estate

CentroIchigo Owners

Ichigo Animation

Ichigo Marche

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.

Collinear60Synergies Between Ichigo Hotel and Sponsor‒ Strengthen acquisitions through leveraging Ichigo’s sourcing network‒ Increase asset value through Ichigo’s real estate value-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

61

Acquisitions Leveraging Sponsor Support (OneFive Hotels)– Ichigo-Owned OneFive Hotels Operates 15 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
Premier62

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.

63

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.

64