Ichigo Hotel REIT
(3463)

Ichigo Hotel REIT July 2017 Fiscal Period
Corporate Presentation
September 13, 2017

Ichigo Hotel REIT Investment Corporation (3463)
Ichigo Investment Advisors Co., Ltd.

© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

www.ichigo-hotel.co.jp/english

Ichigo Preserves andImproves Real Estate© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

July 2017 Results July 2017 Highlights
 July 2017 Earnings Breakdown
 Revenue +4.2% YOY at Variable Rent
Hotels RevPAR +5.5% YOY at Variable Rent
Hotels RevPAR +6% YOY – Growth in Every
Region except Kyoto

Growth Strategy
 Hotel Market Environment Growth Strategy Action Plan Ichigo Hotel REIT Growth Driving Earnings via Value-Add Capex
 Value-Add Capex – Nest Hotel Naha,
Smile Hotel Tokyo Asagaya Additional Value-Add Capex – Smile HotelTokyo Asagaya Growing Earnings at Existing Hotels
 Actions to Grow Earnings at Smile Hotel
Kyoto Shijo Increased Post-Acquisition NOI March 2017 Acquisition: Grandpark-Inn
Yokohama
 August 2017 Acquisition: Urbain Hiroshima
Executive Geographically Diversified Portfolio
 Stable Financial Base

January 2018 and July 2018 Forecasts
 January 2018 Forecast
 July 2018 Forecast

Appendix© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

4

July 2017 Results© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

5

July 2017 Highlights
Achievements
Organic
Growth

RevPARNOI
External
Growth Portfolio

JPY 8,237 (Variable Rent Hotels)+JPY 433 (+5.5%) YOY

JPY 1.52B+JPY 823M (+117.7%) YOY

JPY 49.1B (20 hotels)+JPY 28.7B (+140.9%) YOY

Drivers• Increased occupancy and ADR by focusing on
hotels with upside in high-demand locations andprice points• Increased earnings stability via increased
geographic diversification and fixed lease hotelacquisitions•

Growing shareholder value via acquiring hotels
with strong competitiveness and upside potential

FFO

JPY 4,287

DPS

JPY 3,101+JPY 276 (+9.8%) YOY• +JPY 58 (+1.9%) vs. initial forecast (-JPY 202
impact from property and city planning taxes fromprevious period’s acquisitions)

NAV

JPY 139,940• Significant unrealized gains+JPY 608 (+16.5%) YOY+JPY 26,547 (+23.4%) YOY• FFO increases supporting dividend growth* 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 + Liability for Asset Retirement Obligation +/- Losses/Gains on Sales +/- Extraordinary Losses/Gains) / Number of Shares Outstanding
NAV = BPS + Unrealized Capital Gains© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.
6

July 2017 Earnings Breakdown(JPY million)

July 2016

July 2017

Initial Forecast

vs. Initial
Forecast

Major Variation Factors (vs. Forecast)

Operating Revenue

774

1,687

1,692

-4

Variable Rent

351

757

760

-2

Fixed Rent

387

870

869

–

Other

35

60

62

-2

Increase in renewal fee income: +3
Decrease in utilities expenses: -5

302

714

731

-17

Decrease in repair & maintenance: -12
Decrease in utilities expense and other rental expenses: -4

4

19

31

-12

Depreciation

101

280

281

-1

Operating Profit

472

973

961

+12

Recurring Profit

392

799

784

+14

Net Income

391

798

783

+14

Dividend per ShareJPY 2,825

JPY 3,101

JPY 3,043

+58

FFO

JPY 3,679

JPY 4,287

JPY 4,235

+52

NOI

699

1,523

1,511

+11

Post-Depreciation NOI

598

1,243

1,229

+13

Capex

69

210

272

-62

Operating Expense
Repair & Maintenance© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Increase: 7 Hotels; Decrease: 4 Hotels+1.9% vs. initial forecast+9.8% (+JPY 276) vs. Jul 2016 fiscal period7

Revenue +4.2% YOY at Variable Rent Hotels‒ Variable Rent Hotels = the Major Driver of Earnings‒ Increased GOP by Matching Restaurant Service Hours to Guest Demand‒ Higher Revenue in Sapporo, Tokyo, Nagoya, Osaka, and Matsuyama
Driving Growth (+JPY 126M YOY)
Total Revenue (Room + Retail)+JPY 6M(+0.2%)

Room Revenue+JPY 126M(+4.2%)

JPY
3,117MJPY
3,123M

JPY
3,003M

JPY
3,129M

January 2016

January 2017

July 2016

July 2017+JPY 8M(+0.3%)

JPY
2,681M

JPY
2,690M

January 2016 January 2017

+JPY 139M(+5.4%)

JPY
2,586M

July 2016

JPY
2,725M

July 2017* Operating results before acquisitions are based on data provided by previous owner.

© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

8

RevPAR +5.5% YOY at Variable Rent Hotels‒ Occupancy Increase (+4.9% YOY) Driving Higher RevPAR‒ See continued ADR Growth Potential
RevPAR

ADR (JPY) / Occupancy (%)
93.4%+JPY 433(+5.5%)

91.7%

91.3%

88.5%

JPY
8,727

JPY
8,784

JPY
8,822

JPY
8,820

July 2016

July 2017+JPY 17(+0.2%)

JPY
8,003

JPY
8,020

January 2016 January 2017

JPY
7,804

July 2016

JPY
8,237

July 2017

January 2016 January 2017

* Operating results before the acquisition are based on data provided by previous owner.

© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

9

RevPAR +6% YOY – Growth in Every Region except Kyoto
YOY by Region (6 Months)

RevPAR
Occupancy

17 Hotels (excludes Hotel Livemax NihombashiHakozaki, Hotel Suave Kobe Asuta, andGrandpark-Inn Yokohama)

ADR

-9%

+18%

+10%

+8%

+8%

+8%

+7%
+4%

+5%

+6%
+10%

+1%

+6% -3%

+8%

+3%
+4%

+5%
+2%

-4%

0%
-1%
-4% +4%-3%

RevPAR (JPY)

Total

Hokkaido

Tokyo

Tokai/Chubu

Kyoto

Osaka

Chugoku/
Shikoku

KyushuOkinawa

7,407

7,869

7,762

6,375

11,504

8,220

5,179

8,384

8,305

© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

10Growth Strategy© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

11

Hotel Market Environment
No. of Guests by Hotel Type (Japanese Guests)

No. of Guests by Hotel Type (Inbound Guests)(million persons)(million person)
30

200

25
150

20
15

100

10
50

5
0

0
2011

2012

2013

2014

Business Hotels

Japanese Inns

Full-Service Hotels

Budget Hotels

2015

2016

Resort Hotels

Change in No. of Guests by Hotel Type vs. Previous Year(Jan – June 2017 Cumulative)(million persons)
4Japanese
3

Inbound

2
1
0

2011

2012

2013

2014

Business Hotels

Japanese Inns

Full-Service Hotels

Budget Hotels

2015

2016
Resort Hotels

 Business hotel demand remains robust andgrowing.
 Continued growth expected due toincreasing domestic and inbound tourism –government target of 40 million inboundtourists by 2020.

-1
-2
-3
Business Hotels

Japanese Inns

Resort Hotels

Full-Service Hotels

Budget Hotels* Data prepared by Ichigo Investment Advisors based on the Japan Tourism Agency (JTA) “Statistical Survey of Travelers”© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

12

Growth Strategy Action Plan
‒ Eliminated AUM Target – Full Focus on Shareholder Value Maximization‒ Made Timeline Flexible to Respond to Market Environment
Stage I

Stage II

Continuous Dividend Growth via External Growth, Organic Growth, and Strong Financial Base

External
Growth• Drive higher earnings via economies of scale from increased
asset size
• Invest primarily in stay-only hotels• Acquisition of conversion-feasible assets and lodging
facilities such as serviced apartments• Asset acquisitions via SPCs

Organic
Growth••• Construct a diversified portfolio to pursue both income
stability and earnings growth• Acquire prime-location full-service hotels and resort hotels in
addition to stay-only hotels• Increase portfolio size and generate scale efficiencies via
acquisitions of newly built hotels in addition to value-add ofexisting hotels

Enhance operational efficiency by monitoring operations and providing advice to partner hotel operators
Increase rents and earnings through value-add capex

Financing• Minimize expenses via collaboration with operators• Further increase earnings via more favorable lease contracts,
rebranding, etc.

• Maintain a strong lender base
• Control LTV• Manage interest rate risk
• Prepare to acquire credit rating• Prepare to enter global REIT indices• Acquire credit rating• Diversify financing• Continue to control LTV and manage interest rate risk
• Enter global REIT indices

Lay Foundation for Growth via Increased
Asset Scale

Pursue Portfolio Diversification,
Stability, and Growth© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

13

Ichigo Hotel REIT Growth (1)NOI: JPY 0.18B → JPY 1.52B (+746.1%)
Dividend per Share: JPY 4,200 → JPY 6,411 (+52.6%)
NOI

Dividend per ShareJPY 4,200

JPY 1,458M(19 hotels)

JPY 180M(9 hotels)

January 20161

JPY 1,523M(20 hotels)

JPY 699M(9 hotels)

July 2016

JPY 6,238

JPY 6,411

JPY 3,101(July 2017)

JPY 3,224(July 2018)

JPY 3,137(January 2017)

JPY 3,187(January 2018)

January 2017
& July 2017

January 2018
& July 2018
(Forecast)

JPY 2,825(July 2016)

JPY 1,375(January 2016)2

January 2017

July 2017

January 2016
& July 2016

1 January 2016 was a shortened fiscal period that ran from Nov 30, 2015 to Jan 31, 2016.
2 January 2016 actual dividend of JPY471 converted to full-period dividend.

© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

14

Ichigo Hotel REIT Growth (2)NAV per Share: JPY 107,461 → JPY 139,940 (+30.2%)

Portfolio

NAV
Unrealized gains

JPY 47.6B(19 hotels)

JPY 20.4B(9 hotels)

JPY 20.4B(9 hotels)

January 2016

July 2016

January 2017

JPY 49.1B(20 hotels)

July 2017

JPY 107,461

JPY 137,197

JPY 139,940

JPY 13,363

JPY 16,106

January 2017

July 2017

JPY 113,393
JPY 11,256

JPY 5,325

January 2016

© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

July 201615

Organic GrowthDriving Earnings via Value-Add Capex
Value-Add Capex Driving Earnings Growth Return: +JPY 37.8M p.a., ROI 21.0%
Completion
Date

Hotel

Renovation Details

PurposeInvestment(JPY M)

Expected Rental
Income Increase(JPY M
per annum)

ROI

Apr 2016

Nest Hotel Sapporo Odori

Renovation of guest rooms

Boost revenue by capturing higher tourist
demand

16.6

2.4

14.6%

Jul 2016

Nest Hotel Sapporo Odori

Convert storage rooms into two additional
guest rooms

Convert non-revenue-generating space
into guest rooms

16.3

2.3

14.4%

Oct 2016

Hotel Wing International Nagoya

Full renovation of guest rooms, hallways,
and lobby

Boost revenue by upgrading/updating
facilities and enhance hotel image

20.6

4.4

21.4%

Dec 2016

Nest Hotel Sapporo Ekimae

Build a dedicated smoking room in thebanquet area

Enhance convenience for guests/visitors
and increase customer satisfaction

1.0

–

–

Jan 2017

Smile Hotel Kyoto Shijo

Convert storage rooms into two additional
guest rooms

Convert non-revenue-generating space
into guest rooms

22.0

6.8

31.2%

Jan 2017

Smile Hotel Kyoto Shijo

Renovation of entrance

Update and upgrade facilities for further
convenience

13.2

–

–

Jan 2017

Nest Hotel Sapporo Odori

Split up a suite into three guest
rooms

Improve revenue of low-occupancy guest
rooms

25.2

2.2

8.9%

Jan 2017

Nest Hotel Osaka Shinsaibashi
Nest Hotel Matsuyama

Convert double rooms with one double bed
into rooms with two single beds

Increase revenue by capturing guests of
twosomes or more

4.6

3.5

76.2%

Apr 2017

Smile Hotel Tokyo Asagaya

Build rental billboard space

Optimal use of unused space

4.0

1.3

33.3%

Jun 2017

Nest Hotel Naha

Convert banquet rooms into five
additional guest rooms

Improve revenue by optimal use of lowrevenue-generating space

27.8

4.8

17.3%

Jul 2017

Smile Hotel Tokyo Asagaya

Renovation of guest rooms (Phase 1 of 3)

Boost revenue by capturing higher tourist
demand

28.9

9.9

34.2%

July 2017 Fiscal Period Total

60.7

16.0

26.4%

Total

180.2

37.8

21.0%

© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

16

Organic Growth

Value-Add Capex – Nest Hotel Naha
Converted Banquet Space Into 5 Additional Guest Rooms (JPY 27.8M)
 Added 2 double rooms and 3 triple rooms Renovation period: May 2017 to June 2017
 Forecast return: +JPY 4.8M p.a., ROI 17.3%
BeforeAfter
Converted into
2 double rooms and3 triple rooms

A pillar in the middle of the banquet
space resulted in low guest use© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

17

Organic Growth

Value-Add Capex – Smile Hotel Tokyo Asagaya
Renovation of Hallway and 28 Rooms on the 5th Floor (JPY 28.9M)
 Renovated 20 single rooms into double rooms to cater to 2 or more guests
 Of these, 6 guest rooms are with flexible layout to accommodate 3 guests
 Renovation period: June 2017 to July 2017
 Forecast return: +JPY 9.9M p.a., ROI 34.2%
Before© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

After

18

Organic Growth

Additional Value-Add Capex – Smile Hotel Tokyo Asagaya
Renovate to increase guest comfort and thus leisure demand to drive
higher earnings
Smile Hotel Tokyo Asagaya
Phase 1 (July 2017 Fiscal Period)

5F

4F

Renovate guest rooms (5F)
Timing:Capex:
Forecast return:
ROI:

July 2017
JPY 28.9M
JPY 9.9M p.a.*
34.2%

Phase 2 (Jan 2018 Fiscal Period)
Renovate guest rooms (3F, 4F)

3F
2F

Timing:Capex:
Forecast return:
ROI:

Jan 2018 (Plan)
JPY 56.0M (Plan)
JPY 19.8M p.a.*
35.4%

Phase 3 (July 2018 Fiscal Period)

Capex
JPY 117.9M
Forecast return+JPY 39.6M p.a.

Renovate guest rooms (2F) & Lobby (1F)

1F & Lobby

Timing:Capex:
Forecast return:
ROI:

June 2018 (Plan)
JPY 33.0M (Plan)
JPY 9.9M p.a.*
30.0%

Average ROI
33.6%* Annualized figures based on forecast© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

19

Organic Growth

Growing Earnings at Existing Hotels
Chisun Inn Osaka Hommachi – Operator rent increase +JPY 13.3M p.a. (c. +13%) – 10% fixed rent increase plus variable rent rateincrease

Smile Hotel Tokyo Asagaya – Retail tenant rent increase Replaced first floor retail tenant at contract termination
 +12.3% rent increase

Smile Hotel Tokyo Asagaya – New earnings via billboard contract
 Sale of advertising space on the side of hotel, taking advantage of its
location adjacent to JR Asagaya station
 +JPY 1.33M p.a. earnings increase

Property Tax Exemption
 JPY 5.67M p.a. tax relief based on the Act
on Development of Hotels for Inbound Tourists
 JPY 0.63M p.a. ongoing exemption on property and city planning tax© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

20

Organic Growth

Actions to Grow Earnings at Smile Hotel Kyoto Shijo
Despite Current Revenue Downturn, NOI Above Level at Acquisition‒ New hotel supply nearby‒ ADR decrease on lower market ADR
at Acquisition(Appraisal-Value Based)
JPY 4,500M

July 2016 (Actual)＋ January 2017 (Actual)
JPY 4,870M *RevPAR

JPY 9,975

JPY 11,373

JPY 10,216

NOI

JPY 254M

JPY 333M

JPY 278M－+31.1%

+9.5%

5.7%

7.4%

6.2%

Appraisal Value

vs. at AcquisitionNOI Yield

July 2017 (Actual)＋ January 2018 (Forecast)
JPY 4,960M **Appraisal Value as of end of January 2017 and July 2017

Action Plan
‒ Value-Add Capex
 Subdivide 4 double rooms into 8 standard guest rooms (July 2018 period) – Forecast
return: +JPY 7.5M p.a., ROI 15.5%
 Convert non-revenue generating storage rooms into 6 guest rooms (January 2019
period) – Forecast return: +JPY 12.0M p.a., ROI 12.0%‒ Revenue Management
 Have deployed a dedicated on-site revenue manager to optimize pricing© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

21

Organic Growth

Increased Post-Acquisition NOI
Value-Add Capex Driving Post-Acquisition NOI Increases
IPO
November 2015

Public Offering
August 2016

March 2017

August 2017

Total

Acquired Assets

9 Hotels
Smile Hotel Kyoto Shijo, etc.

10 Hotels
Nest Hotel Osaka Shinsaibashi, etc.

1 HotelGrandpark-Inn Yokohama

1 HotelUrbain Hiroshima Executive

21 Hotels

Total Months in Operation(as of July 31, 2017)

21 months

11 months

4 months––

Total Acquisition Price

JPY 20.410B

JPY 27.258B

JPY 1.490B

JPY 1.800B

JPY 50.958B

Appraisal Value(as of July 31, 2017)

JPY 23.320B

JPY 28.918B

JPY 1.560B

JPY 2.080B

JPY 55.878B

Unrealized Gains(as of July 31, 2017)

JPY 2.762B

JPY 1.338B

JPY 0.047B–

JPY 4.148B

Appraisal NOI Yield (A)(acquisition-price based)

5.9%

5.5%

5.0%

6.3%

5.7%

NOI Yield (B)

6.8%

5.9%

5.0%

6.3%

6.3%

NOI Yield Growth(B) - (A)

+0.9%

+0.4%

–

–

+0.6%

Fixed Rent

Fixed Rent–

Smile Hotel Kyoto Shijo
Add 2 guest rooms

Value-Add

Nest Hotel Sapporo Odori
Add 2 guest rooms, refurbish &split up suite room
Hotel Wing International Nagoya
Renovate guest rooms
Chisun Inn Osaka Hommachi
Increase rent from hotel operator

Smile Hotel Tokyo Asagaya
Renovate guest rooms, build rental
billboard space, replace operator at
higher rent
Nest Hotel Naha
Add 5 guest rooms
Nest Hotel Osaka Shinsaibashi
Convert double rooms with one double
bed into rooms with two single beds
Nest Hotel Matsuyama
Convert double rooms with one double
bed into rooms with two single beds

Unrealized Gains = Appraisal Value as of July 31, 2017 – Book Value as of July 31, 2017
NOI is of July 2017 fiscal period and January 2018 fiscal period© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

22

External Growth

March 2017 Acquisition: Grandpark-Inn Yokohama‒ Located close to Yokohama Station, one of the busiest stations in theTokyo Metro area
‒ Fixed rent contract to support earnings stability‒ Added a female guest-only area with special amenities to broaden therange of guests beyond capsule hotels’ traditionally male clientele‒ Acquired via Ichigo’s sourcing network
Acquisition Price

JPY 1.49B

Appraisal Value(as of Jan 1, 2017)

JPY 1.56B

Post-depreciation
NOI Yield

4.7%© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

23

External GrowthAugust 2017 Acquisition: Urbain Hiroshima Executive‒ 171 guest room hotel located a 5-minute walk from JR Hiroshima Station‒ Located in a globally recognized tourist destination with steady inbound tourism‒ Fixed rent hotel increasing shareholder value via increased earnings andearnings stability‒ Forecast NOI yield of 6.3% (above Ichigo Hotel REIT average NOI)
‒ Acquired via Ichigo’s sourcing network© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Acquisition Price

JPY 1.80B

Appraisal Value(as of June 1, 2017)

JPY 2.08B

Post-depreciation
NOI Yield

4.8%

24

External GrowthGeographically Diversified Portfolio
IPO(November 30, 2015)

July 2016
Fiscal Period

January 2017
Fiscal Period

July 2017
Fiscal Period

January 2018
Fiscal Period

Portfolio Size

Portfolio Size

Portfolio Size

Portfolio Size

Portfolio Size

9 hotels
JPY 20.4B

9 hotels
JPY 20.4B

19 hotels
JPY 47.6B

20 hotels
JPY 49.1B

21 hotels
JPY 50.9B

Acquisitions

Acquisitions－

Acquisitions

Acquisitions

Acquisitions(PO with Sponsor support)(New Loans - External seller)(New Loans - External seller)

9 hotels
JPY 20.4B

10 hotels
JPY 27.2B

1 hotelJPY 1.4B

1 hotelJPY 1.8B

Hokkaido: 2, Kyoto: 2
Hokuriku/Tokai: 2, Osaka: 1
Kobe: 1, Kyushu/Okinawa: 1

Hokkaido: 1, Tokyo: 3
Hokuriku/Tokai: 2, Osaka: 1
Chugoku/Shikoku: 2
Kyushu/Okinawa: 1(IPO with Sponsor support)

Hotels

Kanto: 1

By Location
November 30, 2015 (IPO)

August 1, 2017

Kobe
6.5%

Kanto
2.9%

Geographic diversification
supports earnings stability

Osaka
7.2%
Hokkaido
15.8%
Kyushu/Okinawa
16.5%

Chugoku/Shikoku: 1

Kyoto
35.5%

Hokuriku/
Tokai 18.5%

Steady portfolio growth via
acquisitions© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Hokkaido
7.7%
Chugoku/
Shikoku
9.0%
Kyushu/Okinawa
10.1%

Tokyo
14.1%

Kobe
2.9%

Hokuriku/
Tokai
19.3%

Osaka
18.1%
Kyoto
15.9%

25

Financing

Stable Financial Base (1)<40% LTV Provides Room for Additional Low-Cost Borrowing
Loan Amount and LTV

Outstanding Loan Balancen(JPY million))
25,000Jul 31, 2016

AmountJPY 8.50B

Jan 31, 2017

JPY 19.50B

Jul 31, 2017

JPY 19.95B

Aug 2017(after newloans)

45.0%

Outstanding loans
LTV
19,50020,00021,75019,950

JPY 21.75B

39.1%

40.0%

15,000Long-Term
Loan Ratio

100.0%

100.0%

100.0%

100.0%
10,000

Average
Interest Rate

0.91%

0.89%

0.88%

36.6%

36.2%

37.1%
8,500

35.0%

0.88%
5,000

Average
Remaining
Maturity

3.6 years

4.5 years

4.1 years

4.2 years030.0%
Jul 31, 2016

Jan 31, 2017

Jul 31, 2017

Aug 2017(after new loans)*LTV after execution of new loans in August 2017 is the percentage based on
total assets as of July 31, 2017 plus the amount of new loans.

© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

26

Financing

Stable Financial Base (2)‒ Shorter-term loans are floating rate loans, taking advantage of current
low interest rates‒ 70% of loans are fixed to hedge against a rise in interest rates
Fixed-to-Floating Ratio and Average Interest Rate

Loan Maturity Distribution

Fixed-Rate Loan Ratio
Floating-Rate Loan Ratio
Average Interest Raten(JPY million))

100%

0.95%
38.2%

26.9%

28.6%

Fixed
Floating

26.2%

80%

6,000
5,250

5,000
4,500 4,500

0.91%
0.91%
4,000

0.89%
0.88%

60%

0.88%

3,250

0.87%
3,000

2,450

40%

73.1%

71.4%

73.8%

0.83%

20%

0.79%

1,000

0%

0.75%

0

Jul 31, 2016

Jan 31, 2017

Jul 31, 2017

Aug 2017(after new loans)

1,800

2,000

61.8%

Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul
2018 2018 2019 2019 2020 2020 2021 2021 2022 2022 2023 2023 2024 2024

* After new loans in August 2017

© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

27

January 2018 and July 2018 Forecasts© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

28

January 2018 Forecast
Dividend Forecast: JPY 3,187 +JPY 50 (+1.6%) vs. January 2017
(JPY million)
January 2017
Actual (A)January 2018
Initial Forecast(March 15, 2017)(B)

January 2018
Revised
Forecast (C)Operating Revenue

1,560

1,698

1,770

+209

Variable Rent

681

725

736

+54

Fixed Rent

823

908

974

+150

Other

54

65

58

+3

581

730

757

+175

9

22

29

+19

Depreciation

268

287

301

+33

Operating Profit

978

967

1,012

+33

Recurring Profit

809

788

821

+12

Net Income

808

787

821

+12

Dividend per ShareJPY 3,137

JPY 3,058

JPY 3,187+JPY 50FFO

JPY 4,275

JPY 4,274

JPY 4,457+JPY 182

NOI

1,458

1,523

1,595

+137

Post-Depreciation NOI

1,189

1,236

1,294

+104

256

285

296

+40

Operating Expense
Repair & Maintenance

Capex

Major Factors for Variation(C) - (A)Expected RevPAR at Variable Rent Hotels: JPY 8,221 (+2.5% vs. January 2017)
Decrease in variable rent from hotels acquired at IPO: -19
Increase in variable rent from newly acquired hotels due to full-year contribution: +33
Increase in variable rent from newly acquired hotels due to higher revenue +41
Increase in fixed rent from newly acquired hotels due to full-year contribution: +147
Increase in fixed rent from revised lease contract (Chisun Inn Osaka Hommachi): +3

Increase in property tax for newly acquired 10 hotels in January 2017: +51
Increase in repair & maintenance expenses for newly acquired hotels in July 2017 andJanuary 2018: +15
Increase in depreciation for newly acquired hotels in July 2017 and January 2018: +29
Increase in asset management fees, administrative service fees: +70

Increase in operating profit: +33, Decrease due to interest costs: -20+4.2% (+JPY 129) vs. initial forecast
Due to asset acquisitions and increase in variable rent
+1.6% (+JPY 50) YOY© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

29

July 2018 Forecast
Dividend Forecast: JPY 3,224 +JPY 123 (+4.0%) vs. July 2017
(JPY million)
July 2017
Actual (A)July 2018
Forecast (B)(B) - (A)

Major Factors for Variation

Operating Revenue

1,687

1,805

Variable Rent

757

795

+38

Increase: 8 Hotels +48
Decrease: 1 Hotel -10

Fixed Rent

870

952

+82

Increase in fixed rent from newly acquired hotels due to full-year contribution: +79
Increase in fixed rent from revised lease contract (Chisun Inn Osaka Hommachi): +3

Other

60

57

-2

714

785

+71

Repair & Maintenance

19

34

+14

Depreciation

280

309

+29

Operating Profit

973

1,020

+46

Recurring Profit

799

831

+31

Net Income

798

830

+31

Dividend per ShareJPY 3,101

JPY 3,224+JPY 123FFO

JPY 4,287

JPY 4,525+JPY 238

NOI

1,523

1,615

+92

Post-Depreciation NOI

1,243

1,305

+62

210

308

+98

Operating Expense

Capex+117 Expected RevPAR at Variable Rent Hotels: JPY 8,448 (+2.6% vs. July 2017)

Increase in property tax for newly acquired hotel in July 2017: +2
Increase in property tax for newly acquired hotel in January 2018: +5
Depreciation for newly acquired hotel in January 2018: +13
Increase in asset management fees, administrative service fees: +16

Increase in operating profit: +46, Decrease due to interest costs: -14+4.0% (+JPY 123) YOY© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

30

Appendix: Portfolio Details© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

31

Hotel Map
Hokkaido

Tokyo

Smile Hotel
Smile HotelTokyo Asagaya Asakusa

Nest Hotel Sapporo
EkimaeHotelLivemax
NihombashiHakozaki

Nest Hotel
Sapporo Odori

Comfort Hotel
Kushiro▶ Sapporo

Kinki (Kyoto/Osaka)

Smile Hotel
Kyoto Shijo

Chisun Inn
Hotel Vista
Premio Kyoto Osaka Hommachi▶ Kushiro

Chugoku/Shikoku

Comfort Hotel
OkayamaAcquired in
March 2017

Nest Hotel
Matsuyama▶ Kyoto▶ Osaka

Hotel Suave
Kobe Asuta

Nest Hotel Osaka
Shinsaibashi

Acquired inAugust 2017

Grandpark-Inn
Yokohama▶ Okayama▶ Fukuoka▶ Kobe▶ Suzuka▶ Hamamatsu

Hokuriku/Tokai▶ Matsuyama▶ Nagoya

Kyushu/Okinawa

Urbain Hiroshima
Executive

21 Hotels
JPY 50.9B
Acquired at IPO▶ Okinawa
Valie Hotel
TenjinNest Hotel
Naha

Comfort Hotel
Hamamatsu

Hotel Wing
International
Nagoya© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Comfort Hotel
CentralInternational
Airport

Comfort Hotel
SuzukaAcquired in Jan 2017
Fiscal Period32

Cash Flow Stability via Multi-Faceted Portfolio Diversification
Portfolio Characteristics
Location
Kanto
3.0%
Chugoku/
Shikoku
5.7%
Hokkaido
8.0%

Hotel Operator

Kobe
3.0%

Kyushu/Okinawa
10.4%

Tokyo
14.6%

Other
24.7%

Hokuriku/Tokai
20.0%

Osaka
18.8%

Nest Hotel
Japan
38.8%

Greens
17.6%
Hospitality
Operations
18.8%

Kyoto
16.4%

Fixed vs. Variable Rent Hotels

Portfolio Concentration

Top 3
35.4%
Other
64.6%

Fixed Rent
53.5%

Variable
Rent
46.5%

* Location and Portfolio Concentration are based on Acquisition Price; Hotel Operator and Fixed vs. Variable Rent Hotels are based upon July 2017 period hotel revenue.
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

33

Individual Hotel Summary
Hotel No.

Hotel Name

Lease Terms

Variable +Fixed Rent
Variable +Fixed Rent

July 2017 Appraisal

Leasable Area(m 2)

Acquisition
Price(JPY M)

Book Value(JPY M)(A)

Value(JPY M) (B)

Sapporo, Hokkaido

5,734.93

2,160

2,161

2,380

5.5

+218

Sapporo, Hokkaido

5,638.78

1,450

1,489

1,650

5.4

+160

Location

Cap rate(%)

Unrealized
Gains (JPY M)(B) - (A)A-1

004 Nest Hotel Sapporo Ekimae

A-2

008 Nest Hotel Sapporo Odori

A-3

018 Comfort Hotel Kushiro

Fixed Rent

Kushiro, Hokkaido

3,180.58

301

301

421

5.5

+119

B-1

020 Grandpark-Inn Yokohama

Fixed Rent

Yokohama

1,183.26

1,490

1,512

1,560

4.6

+47

Tokyo

2,721.70

3,910

3,950

4,030

4.4

+79

Tokyo

1,793.43

1,920

1,921

2,130

4.1

+208

Fixed Rent

Tokyo

853.00

1,360

1,360

1,440

4.5

+79

006 Comfort Hotel Hamamatsu

Fixed Rent

Hamamatsu,
Shizuoka

4,173.92

1,550

1,521

1,780

5.5

+258

Hotel Wing
003
International Nagoya
Comfort Hotel
011
Central International Airport

Variable +Fixed Rent

Nagoya, Aichi

5,255.66

2,670

2,710

2,850

5.0

+139

Fixed Rent

Tokoname, Aichi

11,599.63

5,308

5,329

5,880

4.0

+550

Fixed Rent

Suzuka, Mie

2,186.65

300

302

377

5.0

+74

Kyoto

4,891.84

4,480

4,527

4,960

4.7

+432

Kyoto

3,867.66

3,600

3,603

3,980

4.4

+376

Osaka

3,690.00

1,630

1,657

1,990

4.5

+332

C-1

012 Smile Hotel Tokyo Asagaya

C-2

014 Smile Hotel Asakusa

C-3

Hotel Livemax
016
Nihombashi-Hakozaki

D-1
D-2
D-3

Hotel
D-4

019 Comfort Hotel Suzuka

Variable +Fixed Rent
Variable +Fixed Rent

Variable +Fixed Rent
Variable +Fixed Rent
Variable +Fixed Rent

E-1

001 Smile Hotel Kyoto Shijo

E-2

002 Hotel Vista Premio Kyoto

E-3

005 Chisun Inn Osaka Hommachi

E-4

007 Hotel Suave Kobe Asuta

Fixed Rent

Kobe, Hyogo

4,633.16

1,490

1,469

1,670

5.0

+200

E-5

Nest Hotel
010
Osaka Shinsaibashi

Variable +Fixed Rent

Osaka

8,057.26

7,600

7,736

7,690

4.5

-46

F-1

017 Comfort Hotel Okayama

Fixed Rent

Okayama

5,543.70

1,200

1,206

1,240

5.3

+33

Matsuyama, Ehime

6,671.94

1,610

1,656

1,670

5.7

+13

Fukuoka

1,910.94

1,380

1,415

2,060

4.5

+644

Naha, Okinawa

9,240.20

3,750

3,814

4,040

5.3

+225

92,828.24

49,15849,64953,7984.7+4,148F-2015 Nest Hotel Matsuyama

G-1 009 Valie Hotel Tenjin
G-2 013 Nest Hotel Naha

Variable +Fixed Rent
Variable +Fixed Rent
Variable +Fixed Rent

20 Assets* While Hotel Suave Kobe Asuta’s lease contract includes a variable rent clause, it has never been triggered. Because Ichigo Hotel REIT does not
anticipate receiving variable rent at this hotel, it has been classified as a fixed rent hotel.

© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

34

Individual Hotel Operating Results(year-on-year)
Hotel No.

Hotel Name

A-1

004 Nest Hotel Sapporo Ekimae

A-2

008 Nest Hotel Sapporo Odori

A-3

018 Comfort Hotel Kushiro

B-1

020 Grandpark-Inn Yokohama

C-1

012 Smile Hotel Tokyo Asagaya

C-2

014 Smile Hote Asakusa

Lease Terms
Variable +Fixed Rent
Variable +Fixed Rent

Location

No. of Guest
Rooms

July 2017 (February 2017 - July 2017)
RevPAR (JPY)

Occupancy (% )ADR (JPY)

Revenue (JPY M)

Sapporo, Hokkaido

162

9,145

(+8.5%)

97.7(-0.6%)

9,366(+9.2%)

322.7(+2.0%)

Sapporo, Hokkaido

121

10,556(+8.4%)

96.6(+1.1%)

10,931(+7.3%)

253.6(+9.4%)

Fixed Rent

Kushiro, Hokkaido

126

3,647

(+2.4%)

75.7(+0.8%)

4,816(+1.6%)

89.1(+1.7%)

Fixed Rent

Yokohama

182

Tokyo

112

8,258

(+14.9%)95.2 (+17.0%)

8,673(-1.9%)

170.9(+13.3%)

Variable +Fixed Rent
Variable +Fixed Rent

－

－

－

－

Tokyo

96

7,183

(+3.4%)

97.2(+2.7%)

7,390(+0.7%)

130.3(+3.6%)

196

4,924

(-2.6%)

79.8(-1.9%)

6,172(-0.8%)

174.7(-3.1%)

006 Comfort Hotel Hamamatsu

Fixed Rent

Hamamatsu,
Shizuoka

D-2

003 Hotel Wing International Nagoya

Variable +Fixed Rent

Nagoya, Aichi

220

5,896

(+10.7%)89.5(-0.7%)

6,591(+11.5%)264.3(+8.8%)

D-3

Comfort Hotel
011
Central International Airport

Fixed Rent

Tokoname, Aichi

346

8,017

(+8.8%)

88.7(+3.5%)

9,036(+5.1%)

559.4(+7.5%)

D-4

019 Comfort Hotel Suzuka

Fixed Rent

Suzuka, Mie

105

4,675

(+10.9%)81.2 (+13.5%)

5,757(-2.3%)

90.4(+10.2%)E-1

001 Smile Hotel Kyoto Shijo

Kyoto

140

10,544(-9.8%)

99.8(-0.3%)

10,567(-9.6%)

280.7(-8.6%)

E-2

002 Hotel Vista Premio Kyoto

Kyoto

84

13,105(+6.3%)

89.8(-1.3%)

14,589(+7.7%)

213.1(+5.7%)

E-3

005 Chisun Inn Osaka Hommachi

Osaka

130

7,339

(-15.5%)90.9(+2.0%)

8,077(-17.1%)

172.7(+16.0%)E-5010 Nest Hotel Osaka Shinsaibashi

Osaka

302

8,599

(+19.5%)98.6 (+26.2%)

8,724(-5.3%)

511.8(+17.1%)F-1

017 Comfort Hotel Okayama

Okayama

208

5,097

(+3.5%)

85.9

(

)

5,935

(+3.5%)

201.1(+6.1%)

Matsuyama, Ehime

190

5,269

(+13.1%)

87.3(+7.9%)

6,037(+4.8%)

267.8(+7.2%)

Fukuoka

77

8,384(+3.1%)

89.5(+6.4%)

9,365(-3.1%)

127.3(+3.4%)

Naha, Okinawa

198

8,305

(+0.3%)

87.4(-3.6%)

9,504(+4.1%)

414.4(+0.7%)

181

4,948

(-6.5%)

82.3(-2.8%)

6,013(-3.8%)

178.5(-3.8%)

Variable Rent Hotels

1,832

8,237

(+5.5%)

93.4(+5.6%)

8,820

( –

3,129.4(+4.2%)

Fixed Rent Hotels

1,162

5,719

(+3.6%)

83.6(+1.5%)

6,839(+2.1%) 1,293.1(+3.8%)

Total

2,994

7,258

(+5.0% )89.6(+4.0% )8,102(+0.9% ) 4,422.6(+4.1% )D-1

F-2

015 Nest Hotel Matsuyama

G-1

009 Valie Hotel Tenjin

G-2

013 Nest Hotel Naha

Other

Variable +Fixed Rent
Variable +Fixed Rent
Variable +Fixed Rent
Variable +Fixed Rent
Fixed Rent
Variable +Fixed Rent
Variable +Fixed Rent
Variable +Fixed Rent
Fixed Rent–)

* Data for Hotel Suave Kobe Asuta and Hotel Livemax Nihombashi-Hakozaki are consolidated under Other, because the hotel operators did not provide
consent to disclose hotel-specific data. In addition, data for Grandpark-Inn Yokohama is not shown except for No. of Guest Rooms, as the hotel operator
did not provide consent to disclose hotel-specific data. While Hotel Suave Kobe Asuta’s lease contract includes a variable rent clause, it has never been
triggered. Because Ichigo Hotel REIT does not anticipate receiving variable rent at this hotel, it has been classified as a fixed rent hotel.
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

35

Individual Hotel Financialsは当初予想より9.4%上昇(JPY thousand)
No.

A-1
Total

Hotel Name

A-2

A-3

Nest Hotel
SapporoEkimaeNest Hotel
SapporoOdori

C-1

ComfortHotel
KushiroC-2

D-1

Smile Hotel
Smile HotelTokyo
Asakusa
AsagayaD-3

Comfort Hotel
ComfortCentralHotelInternational
Hamamatsu
Airport

D-4

E-1

E-2

E-3

E-5

F-1

F-2

G-1

G-2

ComfortHotel
SuzukaSmile Hotel
Kyoto
Shijo

Hotel Vista
PremioKyoto

Chisun Inn
Osaka
Hommachi

Nest Hotel
Osaka
Shinsaibashi

ComfortHotel
Okayama

Nest Hotel
Matsuyama

Valie Hotel
TenjinNest Hotel
Naha

Other

Real EstateManagement
Revenue

1,687,985

112,142

89,14918,41992,73159,30355,361

151,441

15,442

154,63975,00066,891

223,789

45,95891,58558,562

116,740

260,825

Fixed Rent

870,228

31,12923,766

18,41930,041

15,83955,361

151,441

15,44230,74475,00036,60064,58145,90035,402

21,664

41,531

177,360

Variable Rent

757,077

81,012

65,382–

62,68943,463–––

123,894–

30,291

159,208–

54,68236,89875,20824,345

Other Rent

60,678

–

–

–

–

–

–

–

–

–

–

–

–

58

1,500

–

–

59,120Real Estate(B) Management
Expenses

164,676

8,137

10,685

5,567

12,993

4,105

3,454

14,305

3,156

7,137

9,482

5,290

15,241

5,705

8,245

4,960

8,067

38,138Outsourcing
Fees

16,472

600

600

900

2,145

600

600

570

540

600

1,475

870

1,200

900

1,080

600

1,080

2,112

Insurance

2,502

148

157

83

86

56

95

280

48

156

101

101

246

141

198

56

237

305

RepairExpenses &Equipment

19,432

1,860

1,183

98

6,909

675

8

385

330

1,214

608

812

1,016

86

1,817

715

1,653

60

Taxes

98,347

5,103

8,304

4,071

3,435

2,357

2,479

12,604

1,821

4,800

6,879

3,140

12,362

4,101

4,708

3,221

4,673

14,283

Other
Expenses

27,921

424

441

415

417

416

271

465

417

365

418

367

417

476

440

367

422

21,377

1,523,308

104,004

78,463

12,85179,73755,19851,906

137,136

12,286

147,50265,51761,600208,548

40,253

83,33953,602

108,672

222,686(D) Depreciation

280,255

12,355

17,4604,445

21,262

12,995

14,33928,820

4,072

16,953

12,633

4,471

31,813

11,731

17,056

8,238

29,60432,000Net Rental
Income(C) - (D)1,243,053

91,64961,002

8,405

58,47542,202

37,567

108,3158,213

130,548

52,884

57,129176,734

28,522

66,28345,36379,068

190,686

(A)

NOI
(C)
(A) - (B)

* Rents for Hotel Wing International Nagoya, Hotel Suave Kobe Asuta, Hotel Livemax Nihombashi-Hakozaki, and Grandpark-Inn Yokohama, and retail rents are included in
Other, as the operators did not provide consent to disclose the data. NOI for Other includes NOI for Hotel Wing International Nagoya, Hotel Suave Kobe Asuta, Hotel
Livemax Nihombashi-Hakozaki, and Grandpark-Inn Yokohama which are JPY 77.1 million, JPY 46.6 million, JPY 33.2 million, and JPY 26.7 million, respectively.
Depreciation for Other includes depreciation for Hotel Wing International Nagoya, Hotel Suave Kobe Asuta, Hotel Livemax Nihombashi-Hakozaki, and Grandpark-Inn
Yokohama which are JPY 8.3 million, JPY 12.7 million, JPY 9.1 million, and JPY 1.9 million, respectively.

© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

36

Revenue, RevPAR, Occupancy & ADR (YOY)YOY Growth Excluding Impact of 2016 Leap Year:
Total Revenue +4.5%, Room Revenue +5.7%
Variable Rent Hotels (12 Hotels)

Variable Rent Hotels (12 Hotels)
Jul 2016

Jul 2017

vs.
Jul 2016

Revenue (JPY M)

3,003

3,129

+4.2%

RevPAR (JPY)

7,804

8,237

+5.5%

Occupancy

88.5%

93.4%

+5.6%

ADR (JPY)

8,822

8,820

–

Total Portfolio (19 Hotels)

Total Portfolio (19 Hotels)
Jul 2016

Jul 2017

vs.
Jul 2016

Revenue (JPY M)

4,248

4,422

+4.1%

RevPAR (JPY)

6,914

7,258

+5.0%

Occupancy

86.1%

89.6%

+4.0%

ADR (JPY)

8,030

8,102

+0.9%

* Excludes Grandpark-Inn Yokohama. Operating results before the acquisition are based on data provided by previous owner.

© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

37

Fixed/Variable Rent, RevPAR, ADR & Occupancy Trends
Fixed/Variable Rent
(JPY thousand)Jul 2016

Jan 2016
Rent
Fixed Rent

Ratio

Rent

Jan 2017
Ratio

Rent

Jul 2017

Ratio

Rent

Ratio

131,07966.2%

423,06354.6%

878,775

56.3%

930,906

55.1%

Fixed Rent from Each Operator

119,61660.4%

387,25350.0%

823,97952.8%

870,228

51.6%

Other (Rent from Retail Tenants)

11,463

5.8%

35,810

4.6%

54,796

3.5%

60,678

3.6%

66,87033.8%

351,895

45.4%

681,95943.7%

757,07744.9%

197,950

100.0%

774,959

100.0%

1,560,734

100.0%

1,687,985

100.0%

Variable Rent
Total

Operating Results (Aug 2016 – Jul 2017)
RevPAR (right)

ADR (right)

Occupancy (left)

(JPY)

100%

10,000

80%

8,000

60%

6,000

40%

4,000

20%

2,000

0%

0
Aug 2016

Sep 2016

Oct 2016

Nov 2016

Dec 2016

Jan 2017

Feb 2017

Mar 2017© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Apr 2017

May 2017

Jun 2017

Jul 2017

38

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

Access

Sapporo, Hokkaido

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

Nest Hotel Japan
Corporation

Guest Rooms

162

AcquisitionPrice

JPY 2.16B

Operating Results (Aug 2016 – Jul 2017)

ADR(right)

RevPAR(right)Occupancy(left)

(JPY)

100%

12,50080%

10,000

60%

7,500

40%

5,000

20%

2,500

0%

0
Aug 2016

Nov 2016

Feb 2017

May 2017

A-2 Nest Hotel Sapporo Odori
Location

Sapporo, Hokkaido

Access4-minute walk from
Odori Station on
Sapporo City Metro
Namboku LineOperating Results (Aug 2016 – Jul 2017)

ADR(right)

RevPAR(right)Occupancy(left)(JPY)

Operator

Nest Hotel Japan
Corporation

Guest Rooms

121

AcquisitionPrice

JPY 1.45B

100%

25,00080%

20,00060%

15,00040%

10,000

20%

5,000

0%

0
Aug 2016

Nov 2016© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Feb 2017

May 2017

39

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

AccessSuginami-ku, Tokyo

1-minute walk from
Asagaya Station on JR
Chuo/Sobu LineOperator

K.K. Hospitality
Operations

Guest Rooms

112

Operating Results (Aug 2016 – Jul 2017)

ADR(right)

RevPAR(right)

(JPY)

100%

12,50080%

10,000

60%

7,500

40%

5,000

20%

2,500

0%
AcquisitionPrice

Occupancy(left)0
Aug 2016

JPY 3.91B

Nov 2016

Feb 2017

May 2017

C-2 Smile Hotel Asakusa
Location

Taito-ku, Tokyo

Operating Results (Aug 2016 – Jul 2017)

ADR(right)

RevPAR(right)Occupancy(left)(JPY)

Access11-minute walk from
Asakusa Station on
Tokyo Metro
Ginza LineOperator

K.K. Hospitality
Operations

Guest Rooms

96

AcquisitionPrice

JPY 1.92B

100%

12,50080%

10,000

60%

7,500

40%

5,000

20%

2,500

0%

0
Aug 2016

Nov 2016© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Feb 2017

May 2017

40

Variable Rent Hotel Details
D-2 Hotel Wing International Nagoya
Location

Nagoya, Aichi

Access2-minute walk from
Marunouchi Station on
both Nagoya Subway
Network SakuradoriLine and Tsurumai
Line

Operator

Forbes Co., Ltd.

Guest Rooms

220

AcquisitionPrice

JPY 2.67B

Operating Results (Aug 2016 – Jul 2017)

ADR(right)

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

12,50080%

10,000

60%

7,500

40%

5,000

20%

2,500

0%

0
Aug 2016

Nov 2016

Feb 2017

May 2017

E-1 Smile Hotel Kyoto Shijo
Location

Kyoto

Access5-minute walk from
Shijo Station on Kyoto
City Subway
Karasuma Line andKarasuma Station on
Hankyu Kyoto MainLine

Operator

K.K. Hospitality
Operations

Guest Rooms

140

AcquisitionPrice

JPY 4.48B

Operating Results (Aug 2016 – Jul 2017)

ADR(right)

RevPAR(right)Occupancy(left)(JPY)

100%

25,00080%

20,00060%

15,00040%

10,000

20%

5,000

0%

0
Aug 2016

Nov 2016© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Feb 2017

May 2017

41

Variable Rent Hotel Details
E-2 Hotel Vista Premio Kyoto
Operating Results (Aug 2016 – Jul 2017)

ADR(right)

RevPAR(right)Occupancy(left)(JPY)

Location

Kyoto

100%

25,000Access5-minute walk from
Kyoto Shiyakushomae Station on Kyoto
City Subway Tozai
Line

80%

20,00060%

15,000Operator

Vista HotelManagement Co., Ltd.

40%

10,00020%

5,000

Guest Rooms

84

AcquisitionPrice

JPY 3.60B

0%0Aug 2016

Nov 2016

Feb 2017

May 2017

E-3 Chisun Inn Osaka Hommachi
Location

Osaka

Operating Results (Aug 2016 – Jul 2017)100%

12,500Access5-minute walk from
Sakaisuji-Hommachi
Station on Osaka
Municipal Subway
Chuo Line80%

10,00060%

7,500

SHR Hotel Lease Co.,
Ltd.

40%

5,000

Operator

20%

2,500

Guest Rooms

130

AcquisitionPrice

JPY 1.63B

ADR(right)

RevPAR(right)0%

Occupancy(left)(JPY)

0
Aug 2016

Nov 2016© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Feb 2017

May 2017

42

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

Osaka

Access1-minute walk from
Nagahoribashi Station
on Osaka Municipal
Subway Sakaisuji Lineand NagahoritsurumiRyokuchi LineOperator

Nest Hotel Japan
Corporation

Guest Rooms

302

AcquisitionPrice

JPY 7.60B

Operating Results (Aug 2016 – Jul 2017)

ADR(right)

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

12,50080%

10,000

60%

7,500

40%

5,000

20%

2,500

0%

0
Aug 2016

Nov 2016

Feb 2017

May 2017

F-2 Nest Hotel Matsuyama
Location

Matsuyama,
Ehime

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

Operator

Nest Hotel Japan
Corporation

Guest Rooms

190

AcquisitionPrice

JPY 1.61B

Operating Results (Aug 2016 – Jul 2017)

ADR(right)

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

12,50080%

10,000

60%

7,500

40%

5,000

20%

2,500

0%

0
Aug 2016

Nov 2016© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Feb 2017

May 2017

43

Variable Rent Hotel Details
G-1 Valie Hotel Tenjin
Location

Fukuoka

Access6-minute walk from
Tenjin Station on
Fukuoka City Subway
Kuko LineOperator

The Court Co., Ltd.

Guest Rooms

77

AcquisitionPrice

JPY 1.38B

Operating Results (Aug 2016 – Jul 2017)

ADR(right)

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

12,50080%

10,000

60%

7,500

40%

5,000

20%

2,500

0%

0
Aug 2016

Nov 2016

Feb 2017

May 2017

G-2 Nest Hotel Naha
Location

Naha, Okinawa

Access7-minute drive fromNaha Airport,
5-minute walk from
Asahibashi Station on
Okinawa Urban
Monorail

Operator

Nest Hotel Japan
Corporation

Guest Rooms

198

AcquisitionPrice

JPY 3.75B

Operating Results (Aug 2016 – Jul 2017)

ADR(right)

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

12,50080%

10,000

60%

7,500

40%

5,000

20%

2,500

0%

0
Aug 2016

Nov 2016© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Feb 2017

May 2017

44

Fixed Rent Hotel Details
A-3 Comfort Hotel Kushiro

B-1 Grandpark-Inn Yokohama
Location

Yokohama,
Kanagawa

Access2-minute walk from
Kushiro Station on JR
Nemuro Main Line

Access6-minute walk from
Yokohama Station on
JR Line, private
railways, and subway

Operator

Greens Co., Ltd.

Operator

MiddleWood Co., Ltd.

Guest Rooms

126

Guest Rooms

182

AcquisitionPrice

JPY 300M

AcquisitionPrice

JPY 1.49B

Location

Kushiro,Hokkaido

C-3 Hotel Livemax Nihombashi-Hakozaki

D-1 Comfort Hotel Hamamatsu
Location

Hamamatsu,
Shizuoka

Access3-minute walk from
Suitengu Station on
Tokyo Metro
Hanzomon Line

Access2-minute walk from
Hamamatsu Station
on JR Tokaido Main
Line, Tokaido
Shinkansen

Operator

Live Max Inc.

Operator

Greens Co., Ltd.

Guest Rooms

48

Guest Rooms

196

AcquisitionPrice

JPY 1.36B

AcquisitionPrice

JPY 1.55B

Location

Chuo-ku, Tokyo© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

45

Fixed Rent Hotel Details
D-3 Comfort Hotel Central International Airport
Location

AccessTokoname,
Aichi
5-minute walk fromCentral International
Airport, 3-minute walkfrom Central
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.

Operator

Greens Co., Ltd.

Guest Rooms

346

Guest Rooms

105

AcquisitionPrice

JPY 5.31B

AcquisitionPrice

JPY 300M

E-4 Hotel Suave Kobe Asuta

F-1 Comfort Hotel Okayama
Location

OkayamaAccess2-minute walk from
Shinnagata Station on
JR Kobe Line (Sanyo
Main Line)

Access15-minute walk from
Okayama Station on
Sanyo Shinkansen,
Sanyo Main Line, Uno
Line

OperatorHotel Tetora

Operator

Greens Co., Ltd.

Guest Rooms

133

Guest Rooms

208

AcquisitionPrice

JPY 1.49B

AcquisitionPrice

JPY 1.20B

Location

Kobe, Hyogo© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

46

Appendix: Hotel Market Environment© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

47

Hotel Market Environment (1)Trend in Number of Inbound Guests per Prefecture(1,000 persons)(1,000 persons)Tokyo

10,000
8,013

8,000

10,000

8,000

8,000

8,000

6,000

4,000

4,000

2,000

2,000

5,173

5,755

4,000

(1,000 persons)

2,500
1,935

2,000

2,016

201 5

201 6

4,000

2,749

2,000

(1,000 persons)

Fukuoka

201 5

201 6

3,000

2,500

2,500

2,500

1,571

1,781

2,000

1,690

1,671

1,500
877

1,000
500

500

500

0

0

0

0

201 6

201 4

201 5

201 6

201 4

201 5

201 6

Ehime

1,500
1,017

500
201 5

2,319

2,000

1,000

201 4

1,000

2,198

(1,000 persons)

Aichi

3,000

2,000

1,642

0
201 4

3,000

1,500

1,304

4,399

0

(1,000 persons)

Okinawa

3,000

6,000
3,976

2,000

201 4

201 6

6,000

3,784

0

0
201 5

Kyoto

8,035

6,000

201 4

(1,000 persons)Hokkaido

10,000

6,221

1,500

(1,000 persons)Osaka

10,000

201 4

1,000

201 5

201 6

44

76

113

201 4

201 5

201 6

* Data prepared by Ichigo Investment Advisors based on the Japan Tourism Agency (JTA) “Statistical Survey of Travelers” (lodging facilities with ten or more employees).
Prefectures shown are where Ichigo Hotel REIT has variable rent hotels.
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

48

Hotel Market Environment (2)Existing and New Hotel Room Supply by Region(Guest Rooms)
400,000

Existing Supply
New Supply+5.3%
18,374350,000

300,000

+4.7%
+7.3%

12,157250,000+9.6%

17,66820,885200,000+20.5%
346,689+5.1%

30,581150,000

6,953
259,593

240,837

100,000+23.2%+7.0%

18,073

5,890

149,286

137,638+21.1%

50,000

7,096

218,448

77,89484,00833,5950

Hokkaido

Kanto

Tokyo

Hokuriku/Tokai

Kyoto

Osaka

Kinki

Chugoku/Shikoku Kyushu/Okinawa(ex-Kyoto &Osaka)
Note: The percentage shows the increase of new supply relative to existing hotel rooms.
Data prepared by Ichigo Investment Advisors based on the Ministry of Health, Labor, and Welfare’s Report on Public Health Administration and Services
and Hotel Restaurant Weekly (June 2, 2017 edition).

© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

49

Hotel Market Environment (3)Record 24M Inbound Tourists Visited Japan in 2016, +21.8% vs. 20152017 is Trending at the Highest Pace Ever, +17.3% vs. 2016 (16.4M Visitors
Recorded in January to July)
No. of Inbound Tourists

No. of Guests Staying at Japanese Hotels(million)(million)
500
60

60
■ Government Target

450

400

40

420

414

2015

2016

396
382

40

360
350

339

24
20

300

20

16
14

13
10

250

8
6

0

200
2011

2012

2013

2014

2015

2016

Jan –
Jul
2016

Jan –
Jul
2017

2020

2030

* Data prepared by Ichigo Investment Advisors based on the Japan National
Tourism Organization (JNTO) “Number of Inbound Tourists.”

2011

2012

2013

2014

* Data prepared by Ichigo Investment Advisors based on the Japan
Tourism Agency (JTA) “Statistical Survey of Travelers” (lodging
facilities with ten or more employees).

© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

50

Appendix: Loan Details/Shareholder Composition/Sponsor© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

51

Loan Details
Loan Balances
Loan

Amount(JPY B)

LenderInterest Rate

Borrowing Date

Maturity

Term Loan I

SMBC, Mizuho, Shinsei, Resona

3.25

0.63%

November 30, 2015

November 30, 2018

Term Loan II

SMBC, Mizuho, Shinsei, Resona

5.25

1.08%

November 30, 2015

November 30, 2020

Term Loan III

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

2.00

0.58%

August 17, 2016

February 28, 2020

Term Loan IV

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

4.50

0.91%

August 17, 2016

February 28, 2023

Term Loan V

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

4.50

0.99%

August 17, 2016

August 31, 2023

Term Loan VI

SMBC

0.45

0.53%

March 27, 2017

February 28, 2020

19.95

Average 0.88%

Total

Lender Composition

Average Remaining Loan Term 4.1 years

Fixed vs. Floating

Strong Lender Group
Fukuoka4%

Nishi-Nippon City
4%

LTV Control

Resona
10%
SMBC
39%

Shinsei
12%Interest Rate Risk Management

Floating Rate
28.6%
Fixed Rate
71.4%

Mizuho31%© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Stable Financial Base52

Shareholder Composition
Major Shareholders (as of July 31, 2017)
Name

Shareholdings by Shareholder Type
SharesDomestic Individuals%

Other Domestic Corporations

Financial Institutions(including securities companies)
Foreign Corporations & Individuals

100%

1

Japan Trustee Services Bank, Ltd., Trust Account29,913

11.6%
80%

Trust & Custody Service Bank, Ltd., Securities Investment
Trust Account23,406

3

The Master Trust Bank of Japan, Trust Account

17,685

6.9%

60%

4

SIX SIS LTD.

14,392

5.6%

40%

5

The Nomura Trust and Banking Co., Ltd., Investment
Trust Account

9,343

3.6%

2

6

Ichigo Inc. (Sponsor)

6,500

9.1%

55,102 shares(21.4%)

42,227 shares(30.5%)

60,069 shares(23.3%)

16,024 shares(6.2%)

18,653 shares(7.2%)

10,002 shares(7.2%)

115,223 shares(44.7%)

68,167 shares(49.2%)

20%

2.5%

78,646 shares(30.5%)

71,235 shares(27.7%)

18,104 shares(13.0%)

100,216 shares(38.9%)

0%

7

6,424

Ichigo Trust Pte. Ltd.

2.5%

Jul 31, 2016
(138,500 shares)
Outstanding shares

8

Morgan Stanley MUFG Securities

5,086

9

THE BANK OF NEW YORK MELLON (INTERNATIONAL)
LIMITED 131800

4,009

1.6%

10

THE BANK OF NEW YORK MELLON
SA/NV 10

3,956

1.5%

120,714

46.9%

Jan 31, 2017
(257,584 shares)

Jul 31, 2017
(257,584 shares)

Note: 119,084 new shares were issued on July 22, 2016.

2.0%

Shareholders by Shareholder Type

Total

Domestic Individuals
Financial Institutions(including securities companies)
City banks, trust banks
Regional banks
Other (including securities companies)
Other Domestic Corporations
Foreign Corporations & Individuals
Total© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Jul 31, 2017
Jul 31, 2016
Jan 31, 2017
Shareholders Shareholders Shareholders
Share
3,339
9,656
10,705
97.4%
44

52

51

0.5%

4
4
36
65
56
3,504

5
3
44
181
57
9,946

8
4
39
178
56
10,990

0.1%
–
0.4%
1.6%
0.5%
100.0%

53

Ichigo Hotel’s Sponsor: Ichigo (2337)
Core Businesses: Asset Management, Real Estate Value-Add, Clean Energy‒ Manages Ichigo Hotel REIT (3463), Ichigo Office REIT (8975), andIchigo Green (9282)‒ TSE First Section, JPX-Nikkei 400 Member‒ Deeply committed to CSR and Sustainability – Japan’s first zero-carbon listed realestate company
Ichigo(TSE First Section 2337)

Ichigo Preserves andImproves Real Estate

The word “Ichigo” comes from the ancient Japanese
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 andsincerity to each act of the tea ceremony for every
guest, because that particular moment will only exist
once and must be fully lived and realized.
Ichigo embraces the Ichigo Ichie philosophy ofsincerity and service, and works to build strong longterm relationships to support the success of ourclients, shareholders, and all stakeholders.

Ichigo Investment Advisors Co., Ltd.

Asset manager of Ichigo Office REIT (8975), Ichigo Hotel REIT (3463), andIchigo Green (9282)

Ichigo Estate Co., Ltd.

Real estate value-add

Ichigo Global Capital Co., Ltd.

Cross-border M&A advisory

Ichigo ECO Energy Co., Ltd.

Clean energy business focusing on utility-scale solar power production,
making purposeful use of unused land nationwide

Ichigo Owners Co., Ltd.

Real estate owner services

Ichigo Real Estate Services Fukuoka
Co., Ltd.

Real estate business centered on Fukuoka in Kyushu region

Ichigo Marché Co., Ltd.

Operates Matsudo Nanbu wholesale market in Chiba Prefecture

Miyako City Co., Ltd.

Operates Miyako City, a large shopping mall in Miyazaki Prefecture© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

54

Ichigo Hotel REIT and Ichigo Sponsor Synergies
 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 REIT shareholders
Buy

Ichigo Hotel REIT (3463)

Ichigo (Sponsor)

Buy

Real
EstateBuy

Value-Add

Preserve & Improve
Sell

Ichigo Hotel REIT Long-Term Asset Management(Grow Earnings to Distribute to Shareholders)







Strategic capexLong-term renovation and equipment renewal
Increase hotel attractiveness & competitiveness
Grow earnings via collaboration with hotel
operators
Grow earnings via rebranding and improving
contract terms
Grow earnings via smart cost control

Sell

Ichigo Sponsor Value-Add(Increase Asset Value)

Role


Hard





Soft




Rectify building code issues
Seismic and safety reinforcement of buildings
Large-scale structural and equipment renewal
Upgrade hotel operator/brandImprove contract terms
Improve hotel operations

External Buyer/Seller© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Sell

55

Portfolio Growth Potential via Ichigo Sponsor Support
24 Assets (JPY 52.5B) in Sponsor Pipeline as of July 2017
 Locations: Major cities such as Tokyo, Yokohama, Osaka, Nagoya,Fukuoka, Kumamoto, and Naha Includes new hotel developments
Completed
Development Project 1
Tokyo

Development Project 2
Fukuoka

Opened:Sep 2017

Opened:Apr 2017

In-Development
Development
Project 3
Kyoto

Development
Project 4
Kanazawa

Development
Project 5
Osaka

Forecast Completion
Date: Sep 2018

Forecast Completion
Date: Nov 2017

Forecast Completion
Date: Nov 2017

Development Project
Perspective Image© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Asahikawa

YokohamaTokyo

NagoyaKumamoto

Osaka

Osaka

Naha

Fukuoka

Fukuoka56

Ichigo Hotel REIT Overview
Ichigo Hotel REIT
Name

Ichigo Hotel REIT Investment Corporation

Securities Code3463

Address

1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo

Executive Director

Osamu Miyashita

Fiscal Periods

January (August 1 - January 31) and July (February 1 - July 31)

Asset Management Company
Name

Ichigo Investment Advisors Co., Ltd.

President

Wataru Orii

Registration & Membership

Financial Instruments Business Operator (Type II, Investment Advisory &Agency Services, and Investment Management Services)
The Investment Trusts Association, Japan© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

57

MEMO

© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

58

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 REIT).
These materials may contain forward-looking statements regarding the intent, belief or current expectations of Ichigo Hotel
REIT 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 future results. Actual results may vary from those indicated in the forward-looking
statements.
In creating these materials, Ichigo Hotel REIT 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, theJapanese version shall prevail.

Contact:
Ichigo Hotel REIT IR Desk (3463)
TEL: +81-3-3502-4854
E-mail： ir_ichigo-hotel@ichigo.gr.jp
www.ichigo-hotel.co.jp/english
Ichigo is Japan’s first zero-carbon listed real estate company. We are taking
responsibility for our environmental footprint by offsetting our carbon emissions
and investing in low-carbon technologies such as solar energy.

© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

59