Ichigo Hotel (3463)

Ichigo Hotel July 2023 Fiscal Period
Corporate Presentation
September 14, 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/en

Make The World
More Sustainable© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

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

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

July 2023 Results
 Organic Growth: Driving Value via Ichigo’s Hotel
Branding July 2023 Highlights
 External Growth: Portfolio Growth Opportunity
 July 2023 Earnings Breakdown
via Ichigo Sponsor Support
 Hotel Operating Results: Significant YOY Increases
in Revenue, RevPAR, Occupancy, ADR
Earnings Forecasts
 Hotel Operating Results: RevPAR Growth in All
 January 2024/July 2024 Forecast Assumptions
Regions via ADR Increase January 2024 Forecast
 Organic Growth: Driving Earnings Growth July 2024 Forecast
 Sustainability Initiatives
 July 2024 Dividend Shareholder Program: Shareholder DiscountIchigo’s Commitment to ESG
Program Ichigo Sustainability Policy
 Shareholder Program: Ichigo J.League
 Ichigo Climate Positive: CO2 Reduction >Shareholder Program
EmissionsSustainability as a Key Management Priority
 On Track Toward Achieving 2025 RE100 Target August 2023 Initiatives: Asset Acquisitions via
 Ichigo ESG – Environmental
Sponsor Support Ichigo ESG – Social
 August 2023 Initiatives: Third-Party Share Ichigo ESG – Governance
Allotment
Appendices August 2023 Initiatives: Significance of Initiatives
 Portfolio Details
 August 2023 Initiatives: Driving Dividend Growth Loan Details & Shareholder Composition
 August 2023 Initiatives: Increased Geographical Sponsor, Shareholder Alignment
Diversification & Portfolio Stability August 2023 Initiatives: Ichigo’s THE KNOT Hotel
Brand© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

5

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

6

July 2023 Highlights
Results
Net Income
RevPAR

JPY 721M+JPY 360M (+99.7%) YOY

JPY 6,948 (16 variable rent hotels)+JPY 2,547 (+57.9%) YOY

Details• Up on government travel subsidy program, robust
inbound demand growth• +JPY 320M (+79.7%) vs. initial forecast (Mar 2023)• -JPY 2M (-0.4%) vs. revised forecast (July 2023)• Occupancy: 83.1% (+0.7% vs. 82.4% initial forecast)• ADR: JPY 8,359 (+44.3% vs. JPY 5,791 initial forecast)• Increase in variable rent on back of hotel demand
recovery• +JPY 407M (+34.5%) vs. initial forecast• +JPY 0.9M (+0.1%) vs. revised forecast

NOI

JPY 1,589M

FFO

JPY 4,382

Dividend

JPY 2,831• Operating Revenue increase driving Dividend increase• +JPY 1,225 (+79.6%) vs. initial forecast• -JPY 10 (-0.4%) vs. revised forecast

NAV

JPY 136,875• Total unrealized gains: JPY 3.3B (+JPY 1.3B vs. previous
period, +2.4%)+JPY 536M (+51.0%) YOY+JPY 1,529 (+53.6%) YOY+JPY 1,413 (+99.6%) YOY+JPY 4,608 (+3.5%) vs. previous period• FFO up on NOI increase

FFO (Funds from Operations) = (Net Income + Depreciation + Amortization of Expenses Related to REIT Establishment + Amortization of Share Issuance Expenses+ Loss on Disposal of Fixed Assets + Accrued Asset Disposal Costs +/- Losses/Gains on Sales +/- Extraordinary Losses/Gains) / Number of Shares Outstanding
NAV = BPS + Unrealized Capital Gains per Share© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

7

July 2023 Earnings Breakdown(JPY million)

Jul 2022
ActualJul 2023
Actual (A)InitialForecast(Mar 2023)(B)

vs.
InitialForecast(A) - (B)

(Reference)
Revised
Forecast(Jul 2023)

Major Variation Factors (vs. Initial Forecast)

Operating Revenue

1,248

1,796

1,400

+395

1,796

Variable Rent

302

756

385

+371

768

Increase in variable rent +392 (Nest Osaka Shinsaibashi,
Shibuya, Asagaya, Sapporo Ekimae, Osaka Sakaisuji, Fukuoka
Tenjin, Okayama, Kumamoto, Kyoto, Nagano, Sapporo Odori)
Decrease in variable rent -21 (Matsuyama, Kurashiki)

Fixed Rent

900

992

972

+19

981

Increase in fixed rent (Valie Hiroshima, Kurashiki)

Other (Gains on Sales, etc.)

45

47

42

+5

47

681

862

744

+118

863

Repair & Maintenance

38

31

46

-14

33

Depreciation

364

387

378

+8

387

Operating Profit

566

933

655

+277

933

Recurring Profit

362

722

402

+320

725

Net Income

361

721

401

+320

724

Dividend

JPY 1,418

JPY 2,831

JPY 1,576+JPY 1,255

JPY 2,841

FFO

JPY 2,853

JPY 4,382

–

–

–

NOI

1,052

1,589

1,182

+407

1,588

Post-Depreciation NOI

687

1,201

803

+398

1,201

Capex

199

551

+749

-197

–

52,44554,704–––

Operating Expenses

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

Increase in Other (Asagaya: Retail rent, renewal fee, and utility
income)AM fee +128, Administrative expenses -7, Utility expenses +2,
Other +1
Unused reserve for repair expenses

Interest expenses -27, Borrowing-related expenses -20,
Amortization of share issuance expenses +6+79.6% vs. previous forecast announced on Mar 2023
-0.4% vs. revised forecast announced on Jul 2023
+99.6% YOY (+JPY 1,413)

Decrease due to renovations not conducted at hotels leased as
Covid facilities

8Hotel Operating Results

Significant YOY Increases in Revenue, RevPAR, Occupancy, ADR
Variable Rent Hotels (16 Hotels)
Feb 1, 2022
- Jul 31, 2022

Feb 1, 2023
- Jul 31, 2023

ChangeFeb 1, 2019
- Jul 31, 2019

YOY

Room Revenue (JPY M)

1,936

3,020

+1,084+56.0%

2,903

Total Revenue (JPY M)

2,018

3,223

+1,205+59.7%

3,062

RevPAR (JPY)

4,401

6,948

+2,547+57.9%

7,111

Occupancy

84.9%

83.1%

-1.8%

-2.1%

86.6%

ADR (JPY)

5,183

8,359

+3,176+61.3%

8,214

Total Portfolio (23 Hotels)
Feb 1, 2022
- Jul 31, 2022

Feb 1, 2023
- Jul 31, 2023

ChangeYOY

Feb 1, 2019
- Jul 31, 2019

Room Revenue (JPY M)

2,820

4,201

+1,381+49.0%

4,194

Total Revenue (JPY M)

2,919

4,467

+1,548+53.0%

4,408

RevPAR (JPY)

4,350

6,532

+2,182+50.2%

6,799

Occupancy

78.8%

80.1%

+1.3%

+1.7%

85.8%

ADR (JPY)

5,523

8,153

+2,630+47.6%

7,922

Data comparisons for all periods use data of 16 hotels currently owned by Ichigo Hotel except the July 2019 fiscal period, which uses data of 15 hotels excluding
Valie Hotel Hiroshima, for which data could not be obtained. Data excludes Capsule Plus Yokohama and Washington Hotel Plaza Shimonoseki Eki Nishi.
Operating results before acquisition are based on data provided by previous owner.

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

9Hotel Operating Results

RevPAR Growth in All Regions via ADR Increase
YOY by Region (Feb 2023 – Jul 2023)
RevPAR
Occupancy

Total
Portfolio

Hokkaido

Kanto/
Koshinetsu

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

ADR

Tokyo

Tokai/
Chubu

Kyoto

Osaka

Kobe

+171%
+135%

Chugoku/
Shikoku

Kyushu+137%+120%+120%+50% +48%+110%+85% +81%

+57%

+35%

+29%
+19% +22%
+12%
+2%

+2%

+14%

+35%
+24%

+14%
+13%

0%

+9%
-3%

-7%
-18% -12%-14% (JPY)

RevPAR

9,281

5,751

12,565

5,227

5,327

6,399

6,065

5,490

6,337

Occupancy

90.9%

94.0%

81.6%

70.3%

67.2%

82.4%

71.6%

81.7%

84.6%

No. Hotels

3

2

3

4

1

2

1

5

2

% of Total
Portfolio Rental
Income

13%

5%

17%

15%

3%

12%

3%

19%

8%

Hotel Wing International Nagoya, Nest Hotel Kumamoto, Valie Hotel Hiroshima, and Hotel Sunshine Utsunomiya were negatively impacted from April 2023 by the end ofleasing all rooms to local governments.

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

10Organic GrowthDriving Earnings Growth (1)Smile Hotel Nagano (Former Comfort Hotel Nagano) Rebranded &Reopened in March 2023
− Changed operator to K.K. Hospitality Operations− Driving earnings growth via change to variable-rent contract
 Conducted renovations as part of rebranding Capture both business and leisure demand Combination of market recovery and variable rent resulting in revenue equivalent to lastyear’s earned due to special Zenkoji Temple event
 Rental income +80% vs. before rebranding (March – July 2023 5-month actual results)
 Appraisal Value +1.8% vs. previous period© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

11Organic GrowthDriving Earnings Growth (2)The OneFive Garden Kurashiki Reopened in March 2023
− Conducted renovations in anticipation of hotel demand recovery
 Aiming for high value-add hotel via enhanced operator services Ramp up efforts to capture leisure demand driven by Kurahashiki Bikan Historical
Quarter, located near the hotel
 Adding hotel value & driving demand via addition of smoking area and laundrymachines
 Post-renovation occupancy 90.0% (+40% YOY), ADR JPY 8,291 (+14% YOY)
YOY Comparison (July 2022 – July 2023)■ RevPAR

■ ADR

50.2%
7,297

Occupancy
90.0%

(JPY)

8,291
7,464

3,662

July 2022
Actual© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

July 2023
Actual12

Sustainability Initiatives
Minimizing Environmental Impact of Ichigo Hotel-Owned Assets−−−−

Completed renewable energy transition at 9 hotels as of July 31, 2023
Targeting renewable energy transition for all hotels by January 2024
Renewable energy at transitioned hotels: 4,136,516kWh (Feb 2023 actual)
CO2 Reduction: 1,824 tons (calculated as 0.441kg CO2 per kWh)

Procurement of Non-Fossil Certificate Tracking to Achieve RE100 Target (TBD)
Energy Efficiency Improvements− Promoting energy consumption reduction via inspections & installing LED lights
and water-saving systems across all hotels
LED Lights %No. OfHotelsWater-Saving
Systems

No. OfHotels100%

3Installed

20

>50%

11

Not Installed2

25% - 50%

4

TBC

3

<25%

2

Total

25

TBC

5

Total

25

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

13

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
 Special rate 12% lower than rates
on hotel website
 41 Hotel Wing International Hotels
located across Japan, from
Hokkaido to Kagoshima

K.K. Hospitality Operations
 Smile Hotels
 Special rate 10% lower than rates
on hotel website
 75 Smile Hotel and Hotel Emisia
brand hotels located across Japan,
from Hokkaido to Okinawa© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Greens Co., Ltd.
 Choice Hotels
 Special rate 10% or 13% lower thanrates on hotel website
 73 Comfort Hotel brand hotels
located across Japan, from
Hokkaido to Okinawa

14

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 (76,000 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.

15

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

16

August 2023 Initiatives

Asset Acquisitions via Sponsor Support
Acquired Assets: 5 Hotels/JPY 15B
Hotel

Comfort Hotel
Osaka
Shinsaibashi(Ichigo Shinsaibashi
Building)

HOTEL
THE KNOTYOKOHAMA

Acquisition Date

Quintessa Hotel
Ise Shima

Quintessa Hotel
Ogaki

THE KNOTSAPPORO

August 25, 2023

Acquisition Price(JPY M)

3,700

4,800

610

1,070

4,900

Appraisal value(JPY M)

3,900

5,610

644

1,150

5,300

Appraisal
NOI Yield

4.7%

5.7%

11.9%

10.0%

5.0%

Lease Terms

Variable + Fixed

No. Of Guest
Rooms

214

145

150

98

140

Operator

Greens Co., Ltd.

K.K. Hospitality
Operations

Core Global
Management
Co., Ltd.

Core Global
Management
Co., Ltd.

OneFive Hotels Inc.

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

17

August 2023 Initiatives

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

72,515 shares

Issue Price

JPY 111,700 per share

Total Issue AmountJPY 8,099,925,500

Offering Method

Third-Party Allotment

Allottees & Number of Shares

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

59,087 shares
13,428 shares

18

August 2023 Initiatives

Significance of Initiatives
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 &Earnings
Upside• Increased Portfolio Stability via Geographic Diversification & Ability toCapture Both Leisure & Business Demand

StrongSponsorSupport• Acquiring 5 Hotels Initially Scheduled for Acquisition in March 2023 at
Same Acquisition Prices, despite Growth in NOI & Appraisal Valuesince March

Forecast (July 2023) 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

Initiatives collectively refers to the hotel acquisition, third-party share issuance, and loan detailed in “Issuance of New Shares via Third-Party Allotment,” “Acquisitionof Five Hotel Assets,” “New Loan for Acquisition of Hotel Assets,” “Earnings Forecast Revision for the January 2024 Fiscal Period” announced on August 16, 2023.
© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

19

August 2023 Initiatives

Driving Dividend Growth– Impact of Acquisition on Jan 2024 Dividend: +JPY 112 (+5.2%)– Jan 2023 Period Had One-Off Rental Income due to Leases to Local
Governments 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)

+5.2%

2,240
Impact from
Local
Government
Leases

2,246

2,134
+67.6%+76.4%

967
1,273

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

January 2024
(Revised Forecast)20August 2023 Initiatives

Increased Geographical Diversification & Portfolio Stability

As of July 31, 2023

Acquired Hotels

As of August 25, 2023

No. Of Hotels

25

5

30

Acquisition Price

JPY 54.7B

JPY 15.0B

JPY 69.8B

Appraisal Value

JPY 58.0B

JPY 16.6B

JPY 74.6

Total No. Of Rooms

3,989

747

4,736

NOI

JPY 1,589M

JPY 383M(Jan 2024 forecast)

JPY 1,813M(Jan 2024 forecast)

Geographic
Diversification

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 Geographical
Diversification

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.

21

August 2023 Initiatives

Ichigo’s THE KNOT Hotel Brand (1)Acquired 2 Ichigo Boutique Hotels “THE KNOT”
HOTEL THE KNOT YOKOHAMA

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

22

August 2023 Initiatives

Ichigo’s THE KNOT Hotel Brand (2)Restaurant & Bar at THE KNOTSMOKE DOORLES BOIS

Grill Restaurant Maximizing Potential of Ingredients

THE KNOT SAPPORO Lounge

Ichigo promotes the revitalization of communities and aims to expand THE KNOT hotel lineup. The hotels are rooted in and promote local communities.
© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

23

Organic GrowthDriving Value via Ichigo’s Hotel Branding
THE KNOT Boutique Hotels− Attracting locals in addition to hotel guests− Fostering ties with local communities, promoting culture, & creating comfortable
spacesTHE KNOTThe OneFive: Hotel Brand Focused on Omotenashi (Japan’s Tradition of
Hospitality & Service) via Offering of Selected Food
− Seasonal menus featuring local foods− Known for welcome afternoon tea and sweets boxes

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

24External Growth

Portfolio Growth Opportunity via Ichigo Sponsor Support
Sponsor Owns 13 Hotels Across Japan, Mainly Lodging-Focused Hotels
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

2

8,211

Kinki

1

5,322

Chugoku/
Shikoku

1

3,962

Kyushu7

23,940Total

1346,767

As of May 31, 2023 (excludes hotels acquired on August 25, 2023)

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

25

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

26

January 2024/July 2024 Forecast Assumptions
Assuming 30 Currently-Owned Hotels & No Rebranding/Re-tenanting
Not Assuming Inbound Tourism Increase or Group Tourism Demand From
China
Assuming Drop Out of Demand From Japanese Government’s Domestic
Travel Subsidy Program
YOY Change(Reference)
January 2020
Actual

-2.5%

-2.9%

84.1%

JPY 8,217+JPY 1,031+14.3%

JPY 7,664

JPY 6,952+JPY 693+11.1%

JPY 6,447

January 2023
ActualJanuary 2024
Forecast

Occupancy

87.1%

84.6%

ADR (JPY)

JPY 7,186

RevPARJPY 6,259

July 2023
ActualOccupancy

July 2024
Forecast

Difference

Difference

YOY Change(Reference)
July 2019
Actual

83.7%

85.5%

+1.8%

+2.1%

86.1%

ADR

JPY 8,957

JPY 8,805-JPY 152-1.7%

JPY 8,298

RevPAR

JPY 7,498

JPY 7,525+JPY 27+0.4%

JPY 7,143* Data of 21 hotels for all fiscal periods except the July 2019 fiscal period, which reflects data for 19 hotels excluding Valie Hotel Hiroshima& THE KNOT SAPPORO© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

27

January 2024 Forecast
No Change From Forecast Announced on August 16, 2023
(JPY million)
Jan 2024
Revised
Forecast (B)Jan 2023
Actual (A)vs. Forecast(B) - (A)Operating Revenue

1,537

2,094

+557

Variable Rent

487

752

+265

Fixed Rent

998

1,224

+226

Other (Gains on Sales, etc.)

51

117

+66

755

1,007

+252

Repair & Maintenance

21

75

+54

Depreciation

373

473

+100

Operating Profit

781

1,086

+305

Recurring Profit

572

736

+164

Net Income

571

735

+164

Operating Expenses

Dividend

JPY 2,240

JPY 2,246+JPY 6

1,353

1,813

+460

Post-Depreciation NOI

980

1,339

+359

Capex

194

457

+263

254,974

327,489+72,515NOI

No. Of Shares Outstanding

Major Factors for Variation

Increase in variable rent +421 (5 acquired hotels, Kurashiki, Nest Osaka Shinsaibashi,
Matsuyama, Sapporo Odori, Nagano, Fukuoka Tenjin, Sapporo Ekimae, Kyoto,
Okayama)
Decrease in variable rent -156 (Valie Hiroshima, Kumamoto, Nagoya) *Due totermination of contracts leasing all rooms
Increase in fixed rent +235 (5 acquired hotels, Kurashiki, Utsunomiya, Osaka Sakaisuji)
Decrease in fixed rent -9 (Nagano)
Retail rent: 3 acquired hotels +47, Utsunomiya +2, Kumamoto -4
Utility income +15, Other income +5
AM fee +48, Administrative expenses +6, Utility expenses +15
Fixed asset tax +10, Insurance/Management outsourcing fees, trust fees +18

Interest expenses +81, Borrowing-related expenses +55
Amortization of share issuance expenses +5, Amortization of bond issuance expenses 1+0.3% YOY
±0 vs. previous forecast+JPY 112 impact from acquisition of 5 hotels

Increase due to value-add capex for 5 acquired hotels© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

28

July 2024 Forecast
Assuming End of Contract for Leasing Rooms to Local Governments & Drop
Out of Demand From Government Travel Subsidy Program
Dividend +JPY 137 Due to Acquisition of 5 Hotels(JPY million)
Jul 2023
Actual (A)Jul 2024
Forecast (B)vs. Forecast(B) - (A)

Major Factors for Variation(B) - (A)Operating Revenue

1,796

2,372

+576

Variable Rent

756

967

+211

Increase in variable rent +273 (5 acquired hotels, Kurashiki, Nagoya, Okayama,
Matsuyama)
Decrease in variable rent -62 (Valie Hiroshima, Kumamoto) *End of leasing all rooms

Fixed Rent

992

1,265

+273

Increase in fixed rent +273 (5 acquired hotels, Kurashiki, Nagano)

Other (Gains on Sales, etc.)

47

139

+92

Retail rent (3 acquired hotels) +67
Utility income +17, Other income +7

862

1,142

+280

AM fee +51, Administrative expenses +21, Fixed asset tax +48
Insurance/Management outsourcing fees, trust fees +21, Utility expenses +15

Repair & Maintenance

31

60

+29

Depreciation

387

481

+94

Operating Profit

933

1,229

+296

Recurring Profit

722

894

+172

Net Income

721

893

+172

JPY 2,831

JPY 2,728-JPY 103

NOI

1,589

2,052

+463

Post-Depreciation NOI

1,201

1,570

+369

551

541

-10

254,974

327,489+72,515

Operating Expenses

Dividend

Capex
No. Of Shares Outstanding

Interest expenses +114, Borrowing-related expenses +12
Amortization of share issuance expenses +5, Amortization of bond issuance expenses-7, Non-operating income -1-3.6% YOY
+JPY 137 impact from acquisition of 5 hotels© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

29

July 2024 Dividend
Conservative Forecast of Hotel Demand Growth Due to Drop Out of
Demand From Japanese Government Travel Subsidy Program
Conservative Forecast of Rental Expenses & Non-Operating Expenses
Impact of 5 Newly Acquired Hotels on Dividend: +JPY 137 (+5.29%)
Dividend

+8

(JPY)

-77

+18
-190

2,831

+137

2,728

July 31, 2023

NOI

25 existing hotels

5 new hotels

SG&A
Expenses

Non-Operating Asset Acquisition
Expenses
ImpactDepreciation© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

July 31, 202430

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

31

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.

32

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.

33

On Track Toward Achieving 2025 RE100 Target
Ichigo RE100 Progress
FY25/2 Target

100%

FY23/2 Renewable Energy Transition Impact

CO2 Reduction

FY24/2 Target

85%
Renewable Energy
Ratio(as of May 31, 2023) Renewable71

CO2 Emissionsof Cars

EnergySwitch%35,000 tons p.a.

× 15,200 cars p.a.

49%

22%
Non-Fossil Certificate
Tracking for Ichigo Power
PlantsIncludes all Ichigo, Ichigo Hotel (3463), andIchigo Office (8975) assets© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

34

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• The OneFive Tokyo
Shibuya(BELS, 4 stars)
GRESB (Since 2021)• Received Green Star
for 2 years in a row.
Evaluated for ESG,
management, &performance
Transition to Renewable
Energy• Completed at 9 hotels• To be transitioned
sequentially at otherhotelsCertifications• 22 (19 assets)• 32.0% of total leasable
office area
GRESB (Since 2016)• Received Green Starfor 6 years in a row.
Evaluated for ESG,
management, &performance
Transition to Renewable
Energy• Completed at all 74
assets by April 2023
(excludes partially-owned
assets)(as of July 31, 2023)© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

35

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, andtrack and field.

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 6th 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.

36

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 2 J-REITS (out of 60), 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➡ 24 of 60 J-REITs have AMC Presidents serving as➡ Only 5 Asset Management Companies have any

Executive Director of the REIT

Independent Directors

All Ichigo Hotel Directors are Independent

2 of 4 Ichigo Investment Advisors' Directors
are Independent* Based on research as of August 31, 2023

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

37

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

38

Portfolio Lease Details
Operator Diversification Driving Earnings Stability
Lease Terms

Fixed Rent

Fixed + Variable Rent

(as of July 31, 2023)

Variable Rent

Total

Form of Contract

Lease

Lease

Lease

Lease

–

Fixed Rent

Yes

Yes

Yes

–

–

Variable Rent–

Fixed Portion of
Revenue Upside

Fixed Portion of Hotel
GOP

Excess Above FixedPortion of Hotel GOP–

Rental Income(Jul 2023 Actual)

JPY 473M(27.1%)

JPY 88M(5.1%)

JPY 1,143M(65.4%)

Not Available1

JPY 1,748M(100%)

Number of Hotels

8 Hotels

2 Hotels

14 Hotels

1 Hotel25 Hotels

Total AcquisitionPrice

JPY 13.90B(25.4%)

JPY 4.16B(7.6%)

JPY 35.24B(64.3%)

JPY 1.49B(2.7%)

JPY 54.78B(100%)

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

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

39

Individual Hotel Summary(as of July 31, 2023)
Hotel
No.

Hotel

Hotel Name

Lease Terms

Location

Leasable Area(m2)

Acquisition
Price(JPY M)

Book Value(JPY M)(A)

Jul 2023 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

2,139

2,590

5.1

+450

A-2

Nest Hotel Sapporo Odori

Variable + Fixed Rent

Sapporo5,638.78

1,450

1,415

1,820

5.0

+404

A-3

Comfort Hotel Kushiro

Fixed Rent

Kushiro, Hokkaido

3,180.58

300

272

365

5.5

+92

B-1

Capsule Plus Yokohama

Variable Rent

Yokohama

1,183.26

1,490

1,549

1,330

4.7

-219

B-2

Smile Hotel Nagano

Variable + Fixed Rent

Nagano1,921.45

670

728

717

4.9

-11

B-3

Hotel Sunshine Utsunomiya

Fixed Rent

Utsunomiya, Tochigi

5,267.16

2,200

2,264

2,420

4.9

+155

C-1

Smile Hotel Tokyo Asagaya

Variable + Fixed Rent

Tokyo

2,721.70

3,910

3,833

4,640

4.3

+806

C-3

Hotel Livemax Nihombashi-Hakozaki

Fixed Rent

Tokyo

853.00

1,360

1,251

1,380

4.6

+128

C-4

The OneFive Tokyo Shibuya

Variable + Fixed Rent

Tokyo

1,470.52

3,700

3,786

4,240

3.4

+453

D-1

Comfort Hotel Hamamatsu

Fixed Rent

Hamamatsu, Shizuoka

4,173.92

1,550

1,371

1,780

5.1

+408

D-2

Hotel Wing International Nagoya

D-3

Comfort Hotel Central International Airport

Variable + Fixed Rent

Nagoya5,255.66

2,670

2,683

2,150

4.7

-533

Fixed Rent

Tokoname, Aichi

11,599.63

5,308

5,156

5,800

4.1

+643

D-4

Comfort Hotel Suzuka

Fixed Rent

Suzuka, Mie

2,186.65

300

282

354

5.1

+71

E-1

Smile Hotel Kyoto Shijo

Variable + Fixed Rent

Kyoto

4,891.84

4,480

4,501

3,690

4.4

-811

E-3

The OneFive Osaka Sakaisuji

Variable + Fixed Rent

Osaka

3,568.32

1,630

1,744

1,230

4.8

-514

E-4

Hotel Wing International Kobe Shin Nagata Ekimae

Variable + Fixed Rent

Kobe

4,540.90

1,490

1,361

1,870

4.6

+508

E-5

Nest Hotel Osaka Shinsaibashi

Variable + Fixed Rent

Osaka

8,057.26

7,600

7,484

5,650

4.4

-1,834F-1

The OneFive Okayama

Variable + Fixed Rent

Okayama

5,543.70

1,200

1,180

1,900

5.7

+719

F-2

Nest Hotel Matsuyama

Variable + Fixed Rent

Matsuyama, Ehime

6,671.94

1,610

1,632

2,030

5.6

+397

F-3

Urbain Hiroshima Executive

Fixed Rent

Hiroshima

2,756.20

1,800

1,751

1,990

5.4

+238

F-4

The OneFive Garden Kurashiki

Variable + Fixed Rent

Kurashiki, Okayama

3,964.19

1,725

2,137

2,430

4.9

+292

F-5

Valie Hotel Hiroshima

Variable + Fixed Rent

Hiroshima

4,332.50

1,500

1,533

1,740

4.8

+206

F-6

Washington Hotel Plaza Shimonoseki Eki Nishi

Fixed Rent

Shimonoseki, Yamaguchi

5,709.35

1,080

1,036

1,220

4.8

+183

G-1

The OneFive Fukuoka Tenjin

Variable + Fixed Rent

Fukuoka

1,910.94

1,380

1,437

2,230

4.2

+792

G-3

Nest Hotel Kumamoto

Variable + Fixed Rent

Kumamoto

6,404.36

2,220

2,166

2,440

5.2

+273

109,538.74

54,78354,70458,0064.6+3,301

Total (25 Hotels)© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

40

July 2023 Fiscal Period Individual Hotel Operating Results(year-on-year)
Hotel
No.

Hotel Name

Lease Terms

Location

No. of
Guest
Rooms

July 2023 (February 2023 - July 2023)
RevPAR (JPY)

Occupancy (%)

ADR (JPY)

Revenue (JPY M)

A-1

Nest Hotel Sapporo Ekimae

Variable + Fixed Rent

Sapporo162

10,861(+110.7%)

95.0%(+0.8%)

11,432(+108.9%)373.4(+103.7%)

A-2

Nest Hotel Sapporo Odori

Variable + Fixed Rent

Sapporo121

10,217(+90.8%)86.2%(-9.4%)

11,847(+110.6%)

245.8(+76.5%)

A-3

Comfort Hotel Kushiro

Fixed Rent

Kushiro, Hokkaido

126

6,352

(+40.1%)

90.2%(+17.5%)7,045(+19.2%)151.2(+37.7%)

B-2

Smile Hotel Nagano

Variable + Fixed Rent

Nagano

76

6,651

(–)

98.0%

(–)

6,787

(–)

80.9

(–)

B-3

Hotel Sunshine Utsunomiya

Fixed Rent

Utsunomiya, Tochigi

160

5,389

(-28.0%)75.1%(-19.8%)7,180(-10.2%)203.8(-6.2%)

C-1 Smile Hotel Tokyo Asagaya

Variable + Fixed Rent

Tokyo

112

11,932(+83.7%)99.6%(+2.8%)

11,976(+78.7%)243.9(+82.7%)

C-4 The OneFive Tokyo Shibuya

Variable + Fixed Rent

Tokyo

72

17,233(+174.1%)

98.8%(-0.2%)

17,437(+174.5%)

229.1(+179.3%)

D-1 Comfort Hotel Hamamatsu

Fixed Rent

Hamamatsu, Shizuoka

196

5,719

(+55.6%)

82.5%(+20.7%)6,934(+28.9%)202.9(+55.6%)

Variable + Fixed Rent

Nagoya224

3,699(-32.2%)60.0%(-40.0%)6,162(+13.0%)156.0(-29.5%)D-3 Comfort Hotel Central International Airport

Fixed Rent

Tokoname, Aichi

346

6,062

(+44.7%)67.9%(+21.0%)8,923(+19.5%)387.9(+43.5%)D-4 Comfort Hotel Suzuka

Fixed Rent

Suzuka, Mie

105

4,811

(+15.3%)77.1%(+4.5%)

6,238(+10.3%)92.0(+15.0%)

Variable + Fixed Rent

Kyoto

144

5,326

(+135.5%)

67.2%(+12.0%)7,925(+110.3%)

145.9(+126.1%)D-2 Hotel Wing International Nagoya

E-1

Smile Hotel Kyoto Shijo

E-3

The OneFive Osaka Sakaisuji

Variable + Fixed Rent

Osaka

130

6,664

(+151.5%)

96.8%(+0.6%)

6,887(+150.0%)

157.3(+150.1%)

E-4

Hotel Wing International Kobe Shin Nagata Ekimae

Variable + Fixed Rent

Kobe

133

6,065

(+29.2%)

71.6%(+13.0%)8,469(+14.3%)159.0(+31.0%)

E-5

Nest Hotel Osaka Shinsaibashi

Variable + Fixed Rent

Osaka

302

6,284

(+181.3%)

76.3%(+23.8%)8,240(+127.2%)

344.9(+156.6%)

F-1

The OneFive Okayama

Variable + Fixed Rent

Okayama

208

5,732

(+62.1%)98.8%(+1.0%)

5,803(+60.4%)221.6(+59.7%)

F-2

Nest Hotel Matsuyama

Variable + Fixed Rent

Matsuyama, Ehime

190

4,704

(+25.6%)79.9%(+4.0%)

5,889(+20.7%)209.9(+29.3%)F-3

Urbain Hiroshima Executive

Fixed Rent

Hiroshima

171

4,678

(+118.2%)

60.8%(+53.2%)

7,692(+42.4%)144.8(+118.2%)

F-4

The OneFive Garden Kurashiki

Variable + Fixed Rent

Kurashiki, Okayama

107

7,464

(+133.8%)

90.0%(+103.3%)

8,291(+15.0%)131.7(+92.6%)

F-5

Valie Hotel Hiroshima

Variable + Fixed Rent

Hiroshima

171

5,837

(-22.2%)

79.5%(-20.5%)7,339(-2.1%)

191.3(-18.1%)G-1 The OneFive Fukuoka Tenjin

Variable + Fixed Rent

Fukuoka

77

10,459(+166.0%)

97.8%(+4.5%)

10,693(+154.7%)

152.9(+152.1%)

G-3 Nest Hotel Kumamoto

Variable + Fixed Rent

Kumamoto

201

4,758

(-4.8%)

79.5%(-20.5%)5,986(+19.7%)179.6(-1.7%)

Other

455

Variable Rent Hotels

2,523

6,949

(+57.9%)83.1%(-2.1%)

8,359(+61.3%)3,223.2(+59.6%)

Fixed Rent Hotels

1,466

5,664

(+33.5%)73.8%(+12.2%)

7,670(+19.0%)1,243.9(+38.1%)

Total

3,989

6,532

(+50.2%)80.1%(+1.7%)

8,153(+47.6%)

4,467.1(+53.0%)Operating Results data for Hotel Livemax Nihombashi-Hakozaki, Capsule Plus Yokohama, and Washington Hotel Plaza Shimonoseki Eki Nishi are consolidated under
Other, because the hotel operators did not provide consent to disclose hotel-specific data. Fixed Rent Hotels and Total include Hotel Livemax Nihombashi-Hakozaki’s
operating results.
Pre-acquisition data for acquired hotels are based on data received from the previous owners. Smile Hotel Nagano is excluded from the above data because the hotel
operators did not give consent to disclose hotel-specific data that would allow for year-on-year comparisons© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

41

Individual Hotel Financials(JPY thousand)
A-1
Total

A-2

A-3

Nest Hotel Nest Hotel
SapporoSapporoEkimae
Odori

B-2

B-3

ComfortHotel
KushiroSmile Hotel
Nagano

C-1

C-4

Hotel
Smile Hotel
SunshineTokyo
Utsunomiya Asagaya

D-1

The
OneFive
Tokyo
ShibuyaD-3

D-4

Comfort
ComfortHotel Central
HotelInternational
Hamamatsu
AirportE-1

ComfortHotel
Suzuka

E-3

E-5

F-1

F-2

F-4

F-5

The
The
Nest Hotel
The
Smile Hotel OneFive
Nest Hotel
OneFive Valie HotelOsaka
OneFive
Kyoto Shijo
Osaka
Matsuyama
GardenHiroshima
Shinsaibashi Okayama
Sakaisuji
Kurashiki

G-1

G-3

The
OneFive
FukuokaTenjinNest Hotel
Kumamoto

Other(A) Rental Income

1,796,545

130,126

81,202

18,41929,95264,263

141,555

119,676

55,361

151,441

15,44250,93056,555

149,401

90,50362,634

24,37592,39273,97770,579317,751

Fixed Rent

992,218

31,12927,072

18,4193,677

57,79961,60347,56855,361

151,441

15,44230,744

11,42566,291

62,161

36,323

10,64629,137

34,05625,134

216,780

Variable Rent

756,458

98,99654,130–26,274–

79,952

72,108–––20,18545,12983,11028,342

26,311

13,72862,65539,92045,44560,167

Other Rent

47,868

–

–

–

–

6,463

–

–

–

–

–

–

–

–

–

–

–

600

–

–

40,804(B) Rental Expenses

207,031

8,079

9,985

5,435

12,928

6,389

10,351

8,403

3,426

14,748

3,456

6,528

6,741

18,904

6,580

6,615

9,076

10,858

4,948

7,574

45,995

Outsourcing
Fees

18,923

600

600

900

480

780

2,798

600

600

570

540

600

915

1,200

600

720

600

720

600

780

3,720

Insurance

4,235

208

221

117

64

213

121

75

135

395

68

182

139

342

205

279

136

180

75

250

822

RepairExpenses

31,684

1,604

310

-

4,921

305

3,174

2,268

-

783

709

90

1,718

1,216

1,577

847

3,855

5,283

190

1,149

1,680

Taxes

127,420

5,250

8,430

4,008

1,257

4,727

3,747

5,097

2,420

12,541

1,729

5,296

3,600

15,735

3,760

4,341

4,122

4,306

3,718

4,983

28,343

Other
Expenses

24,768

415

424

409

6,205

363

510

362

270

458

410

359

367

410

437

427

362

367

365

410

11,4291,589,514

122,046

71,216

12,98317,02357,874

131,203111,272

51,935

136,693

11,98644,40149,813

130,497

83,92356,01915,29981,53469,02863,005

271,756(D) Depreciation

387,515

17,21918,012

5,840

6,905

4,555

22,941

8,075

15,64635,692

4,471

17,641

10,55035,854

17,696

20,323

21,576

22,537

8,905

22,25170,815Net Rental
Income(C) - (D)1,201,998

104,827

53,204

7,143

10,11753,318108,262

103,197

36,289101,000

7,514

26,75939,263

94,642

66,22635,695-6,27758,99660,12240,753200,940(C NOI) (A) - (B)* 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 of The OneFive Osaka Sakaisuji, Smile Hotel Tokyo Asagaya, and Nest Hotel Kumamoto areincluded 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.

42

RevPAR, ADR, & Occupancy Recovery On Track
Hotel Earnings Recovering, RevPAR Exceeding Pre-Covid Levels
Variable Rent Hotels (Jan 2020 – Jul 2023)■ RevPAR■ ADR

Occupancy
88.7%
84.9%

84.8%

83.1%
8,359

69.4%
65.8%

7,455

51.2%

49.1%

6,674

6,325
5,183

5,080

Jan 2020

2,602

2,184

Jul 2020

Jan 2021

4,579

4,435

4,447
2,919

3,178

Jul 2021

Jan 2022

6,948

5,917

4,401

Jul 2022

Jan 2023

Jul 2023(JPY)

RevPAR

6,325

2,602

2,184

2,919

3,178

4,401

5,917

6,948

Occupancy

84.8%

51.2%

49.1%

65.8%

69.4%

84.9%

88.7%

83.1%

ADR

7,455

5,080

4,447

4,435

4,579

5,183

6,674

8,359

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
from the previous owners.
© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

43

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

(JPY thousand)Jul 2022
Rent

Ratio

Jul 2023
Ratio

Rent

Ratio

940,896

75.4%

1,029,850

67.0%

1,021,552

56.9%

Fixed Rent from Operators

911,701

73.0%

998,05964.9%

992,218

55.2%

Other (Rent from Retail Tenants)

29,194

2.3%

31,7902.1%

29,333

1.6%

Variable Rent

291,51523.4%

487,29131.7%

756,458

42.1%

Other (Utility Income)

15,9601.3%

20,0591.3%

18,5351.0%

1,248,372

100%

1,537,201

100%

1,796,545

100%

Rent

Fixed

Jan 2023
Rent

Total

Operating Results (Aug 2022 – Jul 2023)

RevPAR (right axis)

ADR (right axis)

Occupancy (left axis)

(JPY)

100%

10,000

80%

8,000

60%

6,000

40%

4,000

20%

2,000
0

0%
Aug 2022

Sep 2022

Oct 2022

Nov 2022

Dec 2022

Jan 2023

Feb 2022

Mar 2022© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Apr 2022

May 2022

Jun 2022

Jul 2023

44

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 (Aug 2022 – Jul 2023)

RevPAR(right)Occupancy(left)

100%(JPY)
20,00080%

16,00060%

12,000

40%

8,000

20%

4,000

0%

0
Aug 2022

Nov 2022

Feb 2023

May 2023

A-2 Nest Hotel Sapporo Odori
Location

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

Nest Hotel Japan
Corporation

Guest Rooms

121

AcquisitionPrice

JPY 1.45B

ADR(right)Operating Results (Aug 2022 – Jul 2023)

RevPAR(right)Occupancy(left)(JPY)

100%

20,00080%

16,00060%

12,000

40%

8,000

20%

4,000

0%

0
Aug 2022© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Nov 2022

Feb 2023

May 2023

45

Variable Rent Hotel Details
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

B-2 Smile Hotel Nagano
Location

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

Operator

K.K. Hospitality
Operations

ADR(right)Operating Results (Aug 2022 – Jul 2023)

RevPAR(right)Occupancy(left)

100%(JPY)
10,000

80%

8,000

60%

6,000

40%

4,000
2,000

Guest Rooms

76

20%

AcquisitionPrice

JPY 670M

0%0
Aug 2022

Nov 2022

Feb 2023

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

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

46

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

K.K. Hospitality
Operations
112

RevPAR(right)Occupancy(left)(JPY)

20,000100%

16,00080%
60%

12,000

40%

8,000

20%

4,000

0%

0
Aug 2022

Acquisition
Price

ADR
(right)Operating Results (Aug 2022 – Jul 2023)

Nov 2022

Feb 2023

May 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

OneFive Hotels Inc.

Guest Rooms

72

AcquisitionPrice

JPY 3.7B

100%

Occupancy(left)(JPY)
25,00080%

20,00060%

15,00040%

10,000

20%

5,000

ADR
(right)Operating Results (Aug 2022 – Jul 2023)

RevPAR(right)0%0
Aug 2022© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Nov 2022

Feb 2023

May 2023

47

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 (Aug 2022 – Jul 2023)

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
Aug 2022

Nov 2022

Feb 2023

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

E-1 Smile Hotel Kyoto Shijo
Location
Location

AccessAccessOperator
Guest Rooms
Guest Rooms
Acquisition
Acquisition
Price
Price

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

ADR(right)Operating Results (Aug 2022 – Jul 2023)

RevPAR(right)Occupancy(left)

100%(JPY)
12,50080%

10,000

60%

7,500

40%

5,000

20%

2,500

0%

0
Aug 2022© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Nov 2022

Feb 2023

May 2023

48

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 (Aug 2022 – Jul 2023)

RevPAR(right)Occupancy(left)(JPY)

100%

10,000

80%

8,000

60%

6,000

40%

4,000

20%

2,000

0%

0
Aug 2022

Nov 2022

Feb 2023

May 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 (Aug 2022 – Jul 2023)

RevPAR(right)Occupancy(left)

100%(JPY)
10,000

80%

8,000

60%

6,000

Minacia Co., Ltd.

40%

4,000

Guest Rooms

133

20%

2,000

AcquisitionPrice

JPY 1.49B

0%Operator0
Aug 2022© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Nov 2022

Feb 2023

May 2023

49

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

Osaka

Access1-minute walk from
Nagahoribashi Station
on Osaka Municipal
Subway Sakaisuji LineADR
(right)Operating Results (Aug 2022 – Jul 2023)

RevPAR(right)Occupancy(left)(JPY)

100%

10,000

80%

8,000

60%

6,000

Nest Hotel Japan
Corporation

40%

4,000

Guest Rooms

302

20%

2,000

AcquisitionPrice

JPY 7.60B

0%Operator0
Aug 2022

Nov 2022

Feb 2023

May 2023

F-1 The OneFive Okayama
Location

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

ADR
(right)Operating Results (Aug 2022 – Jul 2023)

RevPAR(right)Occupancy(left)

100%(JPY)
10,000

80%

8,000

60%

6,000

OneFive Hotels Inc.

40%

4,000

Guest Rooms

208

20%

2,000

AcquisitionPrice

JPY 1.20B

0%Operator0
Aug 2022© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Nov 2022

Feb 2023

May 2023

50

Variable Rent Hotel Details
F-2 Nest Hotel Matsuyama
Location

Matsuyama, Ehime

Access25-minute drive from
Matsuyama Airport,
3-minute walk from
Katsuyamacho Station
on Iyo Railway Jonan
Line

ADR
(right)Operating Results (Aug 2022 – Jul 2023)

RevPAR(right)Occupancy(left)
(JPY)

100%

7,500

80%

6,000

60%

4,500

Nest Hotel Japan
Corporation

40%

3,000

Guest Rooms

190

20%

1,500

AcquisitionPrice

JPY 1.61B

0%Operator0
Aug 2022

Nov 2022

Feb 2023

May 2023

F-4 The OneFive Garden Kurashiki
Location

Kurashiki, Okayama

Access8-minute walk from
Kurashiki Station on
JR Sanyo Main LineADR
(right)Operating Results (Aug 2022 – Jul 2023)

RevPAR(right)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
Aug 2022

Nov 2022

Feb 2023

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

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

51

Variable Rent Hotel Details
F-5 Valie Hotel Hiroshima
Location

Hiroshima

Access3-minute walk from
Jogakuin-mae Station
on Hiroden Tram LineADR
(right)Operating Results (Aug 2022 – Jan 2023)

RevPAR(right)Occupancy(left)(JPY)

100%

10,000

80%

8,000

60%

6,000

The Court Co., Ltd.

40%

4,000

Guest Rooms

171

20%

2,000

AcquisitionPrice

JPY 1.50B

0%Operator0
Aug 2022

Nov 2022

Feb 2023

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

G-1 The OneFive Fukuoka Tenjin
Location

Fukuoka

Access6-minute walk from
Tenjin Station on
Fukuoka City Subway
Kuko LineADR(right)Operating Results (Aug 2022 – Jan 2023)

RevPAR(right)Occupancy(left)

100%(JPY)
12,50080%

10,00060%

7,500

OneFive Hotels Inc.

40%

5,000

Guest Rooms

77

20%

2,500

AcquisitionPrice

JPY 1.38B

0%Operator0
Aug 2022© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Nov 2022

Feb 2023

May 2023

52

Variable Rent Hotel Details
G-3 Nest Hotel Kumamoto
ADR(right)Operating Results (Aug 2022 – Jul 2023)

RevPAR(right)Occupancy(left)(JPY)

Location

Kumamoto

100%

10,000Access2-minute walk from
Nishikarashimacho
Station on Kumamoto
City Tram Line

80%

8,000

60%

6,000

Nest Hotel Japan
Corporation

40%

4,000

Guest Rooms

201

20%

2,000

AcquisitionPrice

JPY 2.22B

0%Operator0
Aug 2022

Nov 2022

Feb 2023

May 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.

53

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

54

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

346

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.

55

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

56

Stable Financial Base
Outstanding Loan Balance
Jul 31, 2021

Jan 31, 2022

Jul 31, 2022

Jan 31, 2023

Jul 31, 2023

Aug 25, 2023
(Reference)

JPY 25.47B

JPY 25.47B

JPY 25.47B

JPY 25.47B

JPY 25.47B

JPY 32.47B

Long-Term Loan Ratio

72.5%

72.5%

70.7%

63.7%

46.0%

57.7%

Fixed Rate Ratio

70.7%

70.7%

70.7%

63.7%

46.0%

57.7%

Average Interest Rate

0.75%

0.77%

0.77%

0.76%

0.70%

0.77%

Average Remaining
Maturity

1.8 years

1.6 years

1.1 years

1.0 years

0.7 years

1.1 years

LTV (Total Assets Basis)

43.2%

42.9%

42.9%

42.6%

43.1%

–

AmountDistribution of Loan Maturities(JPY M)
15,00012,00013,300

Fixed Rate
Floating Rate

8,800

9,000

7,170
4,950

6,000

3,000

7,000

4,500
2,220

3,000
2,000

0
Jan 2024

Jul 2024

Jan 2025

Jul 2025

Jan 2026© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Jul 2026

Jan 2027

Jul 2027

57

Loan Details
Loan

LenderAmount(JPY M)

Floating/
Fixed

Interest Rate(%)

Borrowing Date

Maturity

Term Loan 5

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

4,500

Fixed

0.98500%

August 17, 2016

August 31, 2023

Term Loan 9

SMBC, Mizuho, SBI Shinsei, Resona

1,500

Fixed

0.92000%

November 30, 2018

November 29, 2024

Lender Composition

Term Loan 10

SMBC, Mizuho, SBI Shinsei, Resona, NishiNippon City

2,220

Fixed

0.75450%

April 25, 2019

April 30, 2024

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 18

SMBC, Mizuho, SBI Shinsei, Resona

7,000

Variable

0.57000%

November 30, 2022

November 30, 2023

Term Loan 19

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

1,800

Variable

0.57000%

January 31, 2023

January 31, 2024

Term Loan 20

SMBC

450

Variable

0.57000%

February 28, 2023

February 29, 2024

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

Total Borrowings(as of August 25, 2023)

Aozora2%

Fukuoka3%
Nishi-Nippon
City
3%
Resona
10%

SMBC
39%

Shinsei
12%

Mizuho31%

Fixed vs. Floating
32,470

Average 0.77%

Average Remaining Loan Term 1.1 years

Variable
42.3%

Fixed*
57.7%* Includes interest fixed via swaps© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

58

Shareholder Composition
By Number of Shares Held

Major Shareholders (as of July 31, 2023)
Name
1

The Master Trust Bank of Japan,
Trust AccountCustody Bank of Japan, Ltd.,
2
Trust Account

No. OfSharesShare

47,86218.8%

Foreign Corporations & Individuals
Non-Financial Domestic Corporations
38,686(15.2%)
13,328(5.2%)

105,692(41.5%)

110,312(43.3%)

97,268(38.1%)

95,659(37.5%)Jan 2023(254,974 shares)

Jul 2023(254,974 shares)

36,092

14.2%

15,0575.9%

87,909(34.5%)

4 Ichigo Trust Pte. Ltd.

10,9084.3%

5 Ichigo Inc. (Sponsor)

9,653

3.8%

Nomura Trust & Banking Co., Ltd.,
Investment Trust Account

6 Morgan Stanley MUFG Securities Co., Ltd.

4,290

1.7%

NOMURA PB NOMINEES LIMITEDOMNIBUS-MARGIN (CASHPB)

4,002

1.6%

8 MSCO CUSTOMER SECURITIES

3,689

1.4%

7

9 Individual Shareholder

3,151

110,051(43.2%)(Outstanding Shares)

Jul 2022(254,974 shares)

Total

1,946
136,650

16,789(6.6%)

By Number of Shareholders
Jul 31, 2022 Jan 31, 2023
Jul 31, 2023
Shareholders Shareholders Shareholders Share

1.2%
Domestic Individuals

10 GOLDMAN SACHS INTERNATIONAL

32,214(12.6%)

42,114(16.5%)
14,900(5.8%)

3

Domestic Financial Institutions
Domestic Individuals

15,075

13,932

14,104

97.6%

0.8%

Domestic Financial Institutions

34

28

32

0.2%

53.6%

City banks, trust banks
Regional banks

4
–

3
–

4
–

–
–

Other (including securities companies)

30

25

28

0.2%

212
146

185
146

187
132

1.3%
0.9%

15,467

14,291

14,455100%

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

59

Appendix: Sponsor, Shareholder Alignment© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

60

Environmental Certifications
Environmental Certifications
Minimizing Environmental Impact of Ichigo Hotel-Owned Assets− The OneFive Tokyo Shibuya (BELS 4 Stars)− Joined GRESB Real Estate Assessment in 2021
 Awarded 2 Stars in GRESB rating
 Won Green Star designation for 2 consecutive years− Energy efficiency assessments conducted at 1 hotel© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

61

Increasing Stability Via Contract Renewals & Rebranding
TimingHotel Name

Lease Terms

ChangesJun 2020

Smile Hotel Tokyo Asagaya

Variable+Fixed
Rent

Lease Renewal

Oct 2020

The OneFive Okayama(formerly Comfort Hotel Okayama)

Fixed Variable+Fixed
Rent

Rebranding• Operator change to OneFive Hotels• Increased fixed rent & added variable rent

Oct 2020

The OneFive Fukuoka Tenjin(formerly Valie Hotel Tenjin)

Variable+Fixed
Rent

Rebranding• Operator change to OneFive Hotels• Revised variable rent

Feb 2021

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

Rebranding• Added GOP-linked variable rent

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

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

• Increased fixed rent
• Revised variable rent

• Decreased fixed rent
• Revised variable rent62Hotel Map
Hokkaido
A-1

Kanto/Koshinetsu
A-2

Nest Hotel
Nest Hotel
Sapporo Ekimae Sapporo Odori

Tokyo

A-3

B-1

B-2

ComfortHotel Kushiro

Capsule Plus
Yokohama

Comfort Hotel Hotel Sunshine
NaganoUtsunomiya

Kinki (Kyoto/Osaka/Kobe)
E-1

E-3

B-3

C-1

C-3

C-4

D-1

Smile HotelTokyo Asagaya

Hotel Livemax
NihombashiHakozaki

The OneFive
Tokyo Shibuya

Comfort Hotel
Hamamatsu

D-2

D-3

Hotel Wing
International
NagoyaD-4

Comfort Hotel
Central International
Airport

Comfort Hotel
SuzukaKyushuChugoku/Shikoku
F-1

Hokuriku/Tokai

F-2

F-3

G-1

▶ Sapporo
A-1 A-2

G-3

Variable Rent

▶ Kushiro
A-3

Fixed Rent
Smile Hotel
Kyoto Shijo

The OneFive
Osaka Sakaisuji

The OneFive
Okayama

E-4

E-5

F-4

Nest Hotel
Matsuyama

F-5

Urbain Hiroshima
Executive

The OneFive
Fukuoka Tenjin

Nest Hotel
Kumamoto▶ Nagano B-2

F-6▶ Nagoya D-2▶ Kyoto E-1

Hotel Wing International
Kobe Shin Nagata Ekimae

Nest Hotel Osaka
Shinsaibashi

The OneFive
GardenKurashiki

Valie Hotel
Hiroshima

Washington Hotel
Plaza Shimonoseki
Eki Nishi▶ Osaka E-3 E-5▶ Kurashiki F-4▶ Utsunomiya B-3▶ TokyoC-1 C-3 C-4▶ Yokohama B-1▶ Shimonoseki F-6

25 Hotels
JPY 54.7B▶ Hamamatsu D-1▶ Fukuoka▶ Matsuyama▶ Aichi D-3
G-1
F-2▶ Suzuka D-4▶ Kumamoto▶ Kobe E-4
G-3▶ Okayama F-1▶ Hiroshima F-3 F-5(July 2023 rent-basis)© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

63

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.

Collinear

64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

65

Acquisitions Leveraging Sponsor Support (OneFive Hotels)– Ichigo-Owned OneFive Hotels Operates 14 Hotels With Focus on the Hakata(Fukuoka) Area
 Company name changed to OneFive Hotels on May 31, 2023

– 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 Hakata Hotels
Hokkaido

Kanto

THE KNOTSAPPOROThe OneFive
Tokyo Shibuya

KansaiThe OneFive
Osaka Sakaisuji

The OneFive
Kyoto Shijo

Chugoku
Paid-In Capital

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

Establishment
Date

March 2019

• 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
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
Premier66

Ichigo Hotel Overview
Ichigo Hotel
Name

Ichigo Hotel REIT Investment Corporation

Securities Code3463

Address

1-1-1 Uchisaiwaicho, 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.

67

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: +81-3-3502-4892
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.

68