Ichigo Hotel (3463)

Today’s Acquisition of Five Hotels
Supplementary Material
August 16, 2023

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

This material supplements the information on Ichigo Hotel’s acquisitionof five hotel assets, issuance of new shares via third-party allotment,
new loan, & earnings forecast revision detailed in the following
releases announced today:“Issuance of New Shares via Third-Party Allotment”“Acquisition of Five Hotel Assets”“New Loan for Acquisition of Hotel Assets”“Earnings Forecast Revision for the January 2024 Fiscal Period”© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Make The World
More SustainableSignificance of Today's Acquisition of Five Hotels
Leveraging Sponsor Support to Drive Growth & Participate in Japan's
Accelerating Hotel Market Recovery
Dividend
Growth• Increasing January 2024 Dividend

Increased
Portfolio
Scale• Acquiring Assets with NOI upside (5 Assets, JPY 15B)

Increased
Portfolio
Stability &EarningsUpside• Increased Portfolio Stability via Geographic Diversification & Ability toCapture Both Leisure & Business DemandStrongSponsorSupport• Acquiring 5 Hotels Initially Scheduled for Acquisition in March 2023 at
Same Acquisition Prices, despite Growth in NOI & Appraisal Valuesince MarchPrevious Forecast JPY 2,134 ➡ Revised Forecast JPY 2,246 (+5.2%)

 Portfolio scale increasing to 30 hotels, JPY 69.8B AUM (Acquisition pricebasis)• Acquiring HOTEL THE KNOT YOKOHAMA & THE KNOT SAPPORO
 Ichigo boutique hotels that offer more refined guest services & therefore
command higher daily rates© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

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Significance of Third-Party Allotment
Best Approach to Minimize Share Price Impact & Share Dilution &Maximize New Share Proceeds on Behalf of Ichigo Hotel Shareholders
1. Issuing shares at previous day’s closing price – no Ichigo Hotel shareprice impact
2. Issuing shares at no discount (unlike J-REIT public offerings, whichalmost always require a discount)
3. No public offering costs
Overview of New Share Issuance
Number of Shares Being Offered

72,515 shares

Issue PriceJPY 111,700 per share

Total Issue AmountJPY 8,099,925,500

Offering Method

Third-Party Allotment

Allottees & Number of Shares

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

59,087 shares
13,428 shares

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Increased Geographical Diversification & Portfolio Stability

Before Acquisition

Hotels to be Acquired

Post-Acquisition

Number of Hotels

25530

Acquisition Price

JPY 54.7B

JPY 15.0B

JPY 69.8B

Appraisal Value

JPY 56.6B(as of January 31, 2023)

JPY 16.6B

JPY 73.2

Total Number ofRooms

3,989

747

4,736

GeographicDiversification

Nagoya Kobe
Kyushu 4.9% 2.7%
6.6%
Hokkaido
7.1%

Osaka
16.8%
Tokyo
16.4%

Kanto Koshinetsu
8.0%
Kyoto
Chugoku・
8.2%
Shikoku
Tokai
16.3%
13.1%

Increased GeographicalDiversification

NagoyaKobe
3.8% 2.1%
Kyushu
Osaka
5.2%
18.5%
Hokkaido
12.5%
Tokyo
12.8%
Kanto
Koshinetsu
Chugoku・
13.3%
Shikoku
Kyoto
6.4% Tokai 12.8%
12.7%

Note: Geographical Diversification is on an acquisition price basis© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

6Increased Portfolio Scale, NOI, & Dividend
Portfolio ScaleDividend(January 2024 Forecast)

NOI

179.4

69.8
54.7

+15.0（+27.6%）

Before Acquisition(August 16, 2023)

Post-Acquisition(JPY)(JPY B)(JPY B)

135.3

+44.1
（+32.6%）

Before Acquisition(Jan 31, 2023)

Post-Acquisition

213.4

+112
(+5.2%)

Before Acquisition(July 21, 2023)

224.6

Post-Acquisition

Portfolio Scale Before Acquisition: Total Acquisition Price
Post-Acquisition Portfolio Size (Acquisition Price Basis): (Total Before Acquisition + Total Acquisition Price of 5 Hotels)– Total Book Value Estimate of 5 Hotels at Acquisition
Post-Acquisition NOI: NOI at Acquisition (January 2023 Actual NOI) + Total Appraisal NOI of 5 Hotels / 365 x 184 (Number of Days in January 2023 Fiscal Period)© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

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Driving Dividend Growth– Impact of Acquisition on Jan 2024 Dividend: +JPY 112 (+5.2%)– Have Grown January Fiscal Period Dividend Every Period Since Jan
2021 (Jan 2021 dividend: JPY 823)
– Jan 2023 Period Had One-Off Rental Income due to Leases to LocalGovernments during Covid – Excluding These One-Offs, Jan 2024
Dividend +76.4% YOY– Expecting Further Growth on Lifting of Chinese Ban on Group Tours
Dividend Actual Results & Forecast (JPY)2,240
Impact fromLocal
Government
Leases

+5.2%

2,246

2,134
+67.6%+76.4%

967
1,273

January 2023
(Actual)January 2024
(Initial Forecast)© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

January 2024
(Revised Forecast)
8Hotels Being Acquired – 5 Hotels (JPY 15B)

HotelComfort Hotel Osaka
Shinsaibashi(Ichigo ShinsaibashiBuilding)

HOTEL
THE KNOTYOKOHAMAAcquisition Date

Quintessa Hotel
Ise Shima

Quintessa HotelOgaki

THE KNOT SAPPORO

August 25, 2023

Acquisition Price(JPY M)

3,700

4,800

610

1,070

4,900

Appraisal
NOI Yield

4.7%

5.7%

11.9%

10.0%

5.0%

Lease Terms

Variable + Fixed

Acquisition
Route

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

9Comfort Hotel Osaka Shinsaibashi (Ichigo Shinsaibashi Building)Centrally Located in Osaka’s Major Commercial & Shopping Area
Asset OverviewPhotos & Map

Acquisition Price

JPY 3,700M

Appraisal Value

JPY 3,900M

Appraisal NOI Yield

4.7%

Location

Chuo-ku, Osaka

Hotel Type

Lodging-focused

Total Floor Area

6,114.29m2

Structure/Floors/Rooms

S・RC, B1F/11F, 214 rooms

Lease Terms

Variable + Fixed

Operator

Greens Co., Ltd.

Location & Features A lodging-focused hotel located a 5-minute walk fromShinsaibashi Station on the Osaka Metro Midosuji line & theNagahori Tsurumi-ryokuchi line & from Nagahoribashi Station onthe Osaka Metro Sakaisuji line & the Nagahori Tsurumi-ryokuchiline, & a 10-minute walk from Kintetsu Nipponbashi Station on theKintetsu Railway Nara line The Shinsaibashi district, where the hotel is situated, is one of
Osaka’s major commercial & shopping areas full of largecommercial complexes & restaurants centered around Midosuji, ashopping street lined with department stores & luxury-brandflagship stores, & Shinsaibashi, a shopping street lined with fast
fashion stores, drug stores, etc. It is conveniently located to meetbusiness & domestic & inbound leisure demand© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

10HOTEL THE KNOT YOKOHAMA
Centrally Located in Yokohama’s Major Commercial & Shopping Area
Asset Overview

Photos & Map

Acquisition Price

JPY 4,800M

Appraisal Value

JPY 5,610M

Appraisal NOI Yield

5.7%

Location

Nishi-ku, Yokohama, Kanagawa

Hotel Type

Lodging-focused

Total Floor Area

5,794.75m2

Structure/Floors/Rooms

SRC, 10F, 145 rooms

Lease Terms

Variable + FixedOperator

K.K. Hospitality Operations

Location & Features
 A boutique hotel located a 5-minute walk from the JR YokohamaStation.
 The area around the west exit of Yokohama Station, where thehotel is located, has a variety of commercial facilities, including
large-scale retail stores, & is home to the well-known JRYokohama Tower.
 Many shops are located along Palnade Street, a main street in thewest exit area, is extremely popular & draws huge crowds. Inaddition, Yokohama Minamisaiwai District Joint Rebuilding Projectis underway in an adjacent area, with the AEON Mall scheduled toopen in autumn 2023, which will further enhance the area’sattractiveness.

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

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Quintessa Hotel Ise ShimaCentrally Located to Serve Both Tourism & Business Demand
Asset Overview

Photos & Map

Acquisition Price

JPY 610M

Appraisal ValueJPY 644M

Appraisal NOI Yield

11.9%

Location

Shima, Mie

Hotel Type

Lodging-focused

Total Floor Area

11,523.25m2

Structure/Floors/Rooms

S, B1F/9F, 150 rooms

Lease Terms

Variable + Fixed

Operator

Core Global Management Co., Ltd.

Location & Features A lodging-focused hotel located a three-minute walk from
Shima-Yokoyama Station & a 10-minute walk from Ugata
Station on the Kintetsu Railway Shima line The entire area of Shima city is included in Ise-Shima
National Park. The City has many scenic areas & is close
to Kashikojima, one of the most popular tourist destinationsin the Mie prefecture, with many inns & other attractions.

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

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Quintessa Hotel Ogaki
Centrally Located & A Uniquely Positioned Hotel in the Area It Serves, with
Both Conference Rooms & Banquet Halls
Asset Overview

Photos & Map

Acquisition Price

JPY 1,070M

Appraisal ValueJPY 1,150M

Appraisal NOI Yield

10.0%

Location

Ogaki, Gifu

Hotel Type

Lodging-focused

Total Floor Area

7,883.29m2

Structure/Floors/Rooms

SRC/RC, B1F/12F, 98 rooms

Lease Terms

Variable + FixedOperator

Core Global Management Co., Ltd.

Location & Features A lodging-focused hotel located a 5-minute walk from Ogaki
Station on the JR Tokaido Main line & other lines
 Ogaki is the second largest city in Gifu prefecture in terms of
population. It has been an important transportation hub
connecting eastern & western Japan for years & has excellent
access to Nagoya & other major cities in the Kanto & Kansaiareas.

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

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THE KNOT SAPPORO
Centrally Located in Sapporo’s Major Commercial & Entertainment Area
Asset Overview

Photos & Map

Acquisition Price

JPY 4,900M

Appraisal Value

JPY 5,300M

Appraisal NOI Yield

5.0%

Location

Chuo-ku, Sapporo, Hokkaido

Hotel Type

Lodging-focused

Total Floor Area

5,153.60m2

Structure/Floors/Rooms

S/SRC, B1F/13F, 140 rooms

Lease Terms

Variable + FixedOperator

OneFive Hotels Inc.

Location & Features
 A boutique hotel located a 2-minute walk from Susukino
Station on the Sapporo Municipal Subway Namboku line Sapporo is the political, economic, & cultural center ofHokkaido, with the fourth largest population in Japan. The city
is known for its exceptional food & nature, & attracts many
tourists from Japan & abroad, regardless of the season.
 The hotel is located in an area where many people visit all
throughout the day. It is located between Odori Station, which
is surrounded by large commercial facilities includingMitsukoshi, & Susukino Station, one of the largest
entertainment districts in Japan. It is also close to a tourist
spot Tanukikoji Shopping Street.
© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

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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 tosell or buy securities of Ichigo Hotel REIT Investment Corporation (Ichigo Hotel). All information available on Ichigo Hotel’s website andall information available on websites provided as references in the materials on Ichigo Hotel’s website, do not constitute or form a part of,and should not be construed as, an offer to sell or buy shares of Ichigo Hotel.
These materials are not disclosures or reports prepared pursuant to the Financial Instruments and Exchange Act (1948 Law, Act No. 25,including subsequent revisions), the Investment Trust and Investment Corporation Law (1951 Law, Act No. 198, including subsequentrevisions), and other relevant laws, listing rules of the Tokyo Stock Exchange, and rules of the Investment Trusts Association of Japan.
These materials may contain forward-looking statements regarding the intent, belief or current expectations of Ichigo Hotel with 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 futureresults. Actual results may vary from those indicated in the forward-looking statements. These materials also include figures calculated
based on previous forecasts as of past disclosure dates, which do not reflect actual results. Please refer to past disclosures forassumptions and preconditions of these figures.
Ichigo Investment Advisors Co., Ltd. (IIA) is a Financial Instruments Business Operator under the Financial Instruments and ExchangeAct.
In creating these materials, Ichigo Hotel and IIA have sought to provide accurate information. However, there can be no assurance given
as to the accuracy, certainty, validity or fairness of any such information. The content of these materials is also subject to revision orretraction without prior notice.
This document is a translation. If there is any discrepancy between the Japanese version and the English translation, the Japaneseversion shall prevail.

Make The World
More Sustainable

Contact:
Ichigo Hotel IR Desk (3463)
TEL: +81-3-3502-4892
E-mail： ir_hotel@ichigo.gr.jp
www.ichigo-hotel.co.jp/en© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

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