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 31, 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 January 2025 Fiscal Period
Ichigo Hotel is revising upward its earnings forecast for the January 2025 fiscal periodannounced in the March 15, 2024 release “January 2024 Fiscal Period Earnings.” The
July 2024 fiscal period earnings forecast has been revised upwards in the July 25, 2024
release “Upward Earnings Forecast Revision for the July 2024 Fiscal Period.”
1. January 2025 Earnings Forecast Revision
Operating
Revenue

Operating
ProfitRecurring
Profit2,429

1,271931

930

2,842

4,6072,927

2,587

2,586

7,899

+2,177+1,656+1,656+1,656+5,057% Change+89.7%+130.3%+177.7%+177.9%+177.9%Reference:January 2024

2,282

1,250975

974

2,976

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

Reference: Net Income per Share: JPY 7,899
Period-end number of shares outstanding: 327,489 shares
Note: The new forecast is based on the “Preconditions for the January 2025 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. January 2025 Earnings Forecast Revision Rationale
Ichigo Hotel is revising up its earnings forecast to reflect the impact of the hotel saleannounced in today’s release “Hotel Sale (Nest Hotel Sapporo Ekimae).” The sale will
be completed on December 25, 2024 at a sale price of 2.2X the book value and 1.7X
the January 31, 2024 appraisal value, and Ichigo Hotel will record a gains on sale of
JPY 2.1 billion during the January 2025 fiscal period.

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Preconditions for the January 2025 Earnings Forecast
Preconditions
PeriodNumber ofHotels

 August 1, 2024 to January 31, 2025 (184 days) 30 hotels (29 hotels after the sale of Nest Hotel Sapporo Ekimae onDecember 25, 2024)
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

3

Occupancy
ADR4

January 2025 Fiscal Period
87.3%
JPY 9,313

1OperatingRevenue

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, Nest
Hotel Sapporo Odori, The OneFive Fukuoka Tenjin, Nest Hotel Osaka
Shinsaibashi, Smile Hotel Tokyo Asagaya, Nest Hotel Matsuyama, TheOneFive Okayama, Capsule Plus Yokohama, The OneFive GardenKurashiki, Nest Hotel Kumamoto, Valie Hotel Hiroshima, The OneFive
Tokyo Shibuya, Smile Hotel Nagano, Comfort Hotel OsakaShinsaibashi, HOTEL THE KNOT YOKOKAMA, Quintessa Hotel IseShima, 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 operationduring 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 January 2025 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 RentRent
32292887
1729Total6111646

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 Kumamoto
Valie Hotel Hiroshima
The OneFive Tokyo Shibuya
Smile Hotel Nagano
Hotel Sunshine Utsunomiya
HOTEL THE KNOT YOKOHAMA
Quintessa Hotel Ise Shima
Quintessa Hotel Ogaki
THE KNOT SAPPORO
Other1
Total
155
24
40
65

–58
34
104

55
82
75
170

151

–

151

59
35
72
1815
47
27
1944
757
70
201566
284
1,281

74
53
15–––627114
42–7527207189998

1338987181547902615950571464736137373
2,279

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 Hotel
Osaka Shinsaibashi are included in “Other” because the hotel operators
did not provide consent to disclose hotel-specific data.

 Retail: JPY 106 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, HotelSunshine Utsunomiya, Comfort Hotel Osaka Shinsaibashi, HOTEL
THE KNOT YOKOHAMA, and THE KNOT SAPPORO.
 Gains on sale from the sale of Nest Hotel Sapporo Ekimae: JPY 2,181
million (an estimate, calculated as the Sale Price less Book Value andestimated sale expenses)

4OperatingExpenses

 Depreciation: JPY 481 million. Depreciation has been calculated using
the straight-line method.
 Property and city planning taxes: JPY 175 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 769 million for asset management fee and JPY
21 million for appraisal report costs.

Non-OperatingExpenses

 Interest expenses and other borrowing-related expenses: JPY 335
million Amortization of share issuance expenses: JPY 3 million

Borrowings

 Total borrowings: JPY 32.47 billion as of January 31, 2025

Number ofShares Total 327,489 shares The forecast assumes there will be no additional new shares issuedthrough January 31, 2025

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

Dividend in
Excess ofEarnings

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

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

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