Make The World
More Sustainable[Provisional Translation Only]
This English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

March 13, 2020
IssuerIchigo Hotel REIT Investment Corporation (“Ichigo Hotel,” 3463)
1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Osamu Miyashita, Executive Director
www.ichigo-hotel.co.jp/english
Asset Management Company
Ichigo Investment Advisors Co., Ltd.
Representative: Hiroshi Iwai, President
Inquiries: Hidehito Iwasaka, Head of Ichigo Hotel
Tel: +81-3-3502-4892

Change in Hotel Operator
Ichigo Investment Advisors (“IIA”), the asset management company of Ichigo Hotel,
decided today to appoint a new hotel operator for the Comfort Hotel Okayama.
1. Change Overview
As part of the hotel operator change, the Comfort Hotel Okayama will be rebranded as
The OneFive Okayama (provisional name).
New Operator

1

Former Operator

Operator

Hakata Hotels Inc.

Greens Co., Ltd.

Lease Contract

Variable rent

Fixed rent

Rent

Minimum guaranteed rent:
JPY 133,461,448 p.a.1
Variable rent: quarterly GOP(Gross Operating Profit) lessthe quarterly minimum
guaranteed rent, a fixed
percentage of quarterly
revenue, and a fixed
percentage of quarterly GOP

Fixed rent: JPY 91,800,000 p.a.
Variable rent: None

Tenant Leasehold andSecurity Deposits

Tenant leasehold: None
Security Deposit: None

Tenant leasehold:
JPY 30,600,000
Security Deposit: None

The minimum guaranteed rent period is February 2021 to January 2022.

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2. Reason for Change
IIA is changing the hotel operator due to the upcoming expiration of the current fixedterm lease contract with Greens Co., Ltd. The new hotel operator will be Hakata Hotels
Inc., a consolidated subsidiary of Ichigo, IIA’s parent company. Hakata Hotels currently
operates five hotels in the Hakata area and also the HOTEL EMIT SHIBUYA, which
Ichigo Hotel acquired in February 2020.
Hakata Hotels was chosen from among several candidate operators based on its
competitive price offering. Under the new contract, The OneFive Okayama’s fixed rent
(minimum guaranteed rent) will increase significantly, while the introduction of avariable rent component will increase the upside potential for revenue growth. As thenew hotel operator, Hakata Hotels will deploy PROPERA, an AI-based revenue
management system developed by Ichigo, to maximize earnings and increase guest
satisfaction.
3. New Hotel Operator Profile
Name

Hakata Hotels Inc.

Address

3-13-1 Haruyoshi, Chuo-ku, Fukuoka

Representative
CapitalMinoru Ishihara, Representative Director & Chairman
Takanobu Kitazaki, Representative Director & President
JPY 10 million

Date of Incorporation March 11, 2019

Principal Business

1. Development, operation, lease, and management of retailbuildings, hotels and restaurants
2. Lease and management of real estate
3. Design and construction of buildings and interior designs
4. Consulting services related to retail buildings, retail facilities,
and restaurants

Relationship withIchigo Hotel or its
Asset Management
Company・The hotel operator is an operator of the HOTEL EMITSHIBUYA, which is owned by Ichigo Hotel.
・The hotel operator is a related party as defined in theEnforcement Ordinance of the Investment Trust andInvestment Corporation Law, and is a related party as definedin IIA’s internal rules, given that the hotel operator is aconsolidated subsidiary of Ichigo, IIA’s 100% shareholder.

4. Date of Change
September 13, 2020 (expected)
5. Related-Party Transaction
Hakata Hotels is a consolidated subsidiary of Ichigo, IIA’s parent company. Because
Hakata Hotels is a related party as defined in the Ordinance of the Investment Trust andInvestment Corporation Law and IIA’s internal rules, Ichigo Hotel obtained priorapproval for a lease contract as a related-party transaction from IIA’s Board ofDirectors.
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6. Earnings Outlook
The operator change is forecast to increase Ichigo Hotel’s base NOI by JPY 71 million
p.a.
Because the operator change will not occur until September 13, 2020, the change will
not impact the July 2020 fiscal period earnings forecast presented in Ichigo Hotel’sJanuary 30, 2020 release “Earnings Forecast Revisions for the January 2020 and July
2020 Fiscal Periods.”3