Ichigo Hotel (3463)

Ichigo Hotel July 2021 Fiscal Period
Corporate Presentation
September 14, 2021

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

We would like to express our deepest condolences
to all those across the world affected by the Covid
pandemic, and our wishes for the earliest and fullest
possible recovery.
Take care, be safe.

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

2

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 2021 Results July 2021 Highlights
 July 2021 Earnings Breakdown July 2021 Operating Results Up YOY
 Hotel Demand Recovering Monthly Operating Results Under Covid
 Relatively Small Decrease in Ichigo Hotel
RevPAR vs. 2019
 Driving Stability via Contract Renewals andRebranding Sponsor Support Driving Stability
 Covid Response Shareholder Program (1) Shareholder Hotel
Discount Program Shareholder Program (2) Ichigo J.League
Shareholder Program

Ichigo’s Commitment to ESG Ichigo Sustainability Policy
 Ichigo ESG – Environmental
 Ichigo ESG – Social
 Ichigo ESG – GovernanceAppendices Portfolio Details
 Loan Details & Shareholder Composition Growth Roadmap, Sponsor, Shareholder
Alignment

Sustainability as a Key Management Priority
 Sustainability Initiatives
 Market Environment & Forecast Assumptions
 January 2022 Forecast
 July 2022 Forecast© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

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July 2021 Results© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

7

July 2021 Highlights
Net Income and Dividend Exceeded Forecast Announced in June 2021
Results
Net Income
RevPARJPY 268M+JPY 35M (+15.2%) vs. forecast

JPY 2,815 (14 variable rent hotels)+JPY 156 (+5.9%) vs. forecast

Details• Recorded variable rent at Valie Hotel Hiroshima• Occupancy: 64.3% (vs. 59.0% forecast)• ADR: JPY 4,380 (vs. JPY 4,507 forecast)NOI

JPY 912M+JPY 31M (+3.6%) vs. forecast• Operating Revenue +JPY 5M vs. forecast• Decrease in Operating Expenses due to unused Covidrelated reserveFFO

JPY 2,418• FFO up on NOI increase

Dividend

JPY 1,055• Operating Revenue increase driving Dividend increase

NAV

JPY 129,007• Total unrealized gains: JPY 1.2B

+JPY 409 (+20.4%) YOY+JPY 140 (+15.3%) vs. forecast-JPY 496 (-0.4%) vs. previous period

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.

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July 2021 Earnings Breakdown(JPY million)
Jul 2020
ActualJul 2021
Actual (A)Forecast (B)(Jun 2021)

vs. Forecast(A) - (B)

Major Variation Factors (vs. Forecast)

Operating Revenue

953

1,117

1,112

+5

Variable Rent

-25

126

121

+5

Fixed Rent

935

947

947

–

Other (Gains on Sales, etc.)

42

44

44

–

581

652

675

-23

Repair & Maintenance

21

46

45

+1

Depreciation

336

347

345

+2

Operating Profit

371

465

437

+28

Recurring Profit

171

269

234

+35

Net Income

170

268

233

+35

JPY 670

JPY 1,055

JPY 915+JPY 140

FFO

JPY 2,009

JPY 2,418

–

–

NOI

787

912

881

+31

Post-Depreciation NOI

450

565

536

+29

Capex

128

335

361

-26

52,29452,064––

Operating Expenses

Dividend

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

Increase in variable rent +9 (Valie Hiroshima)
Decrease in variable rent -4 (Kumamoto, Yokohama)

Increase in property tax +7, Decrease in Covid-related reserve -35
Increase in AM fee +6, Decrease in administration fees -4

Non-operating income +1
Decrease in interest expenses -3
Decrease in borrowing-related expenses -3+15.3% vs. forecast+57.5% YOY (+JPY 385)

Decrease due to effective cost controls and rescheduling renovations

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July 2021 Operating Results Up YOY
Variable Rent Hotels (14 Hotels)

Feb 1, 2020
- Jul 31, 2020

Feb 1, 2021
- Jul 31, 2021

ChangeYOY

Feb 1, 2019
- Jul 31, 2019

Room Revenue (JPY M)

792

954

+162

+20.5%

2,583

Total Revenue (JPY M)

902

1,086

+184

+20.4%

2,902

RevPAR (JPY)

2,493

2,815

+322

+12.9%

7,104

Occupancy

48.8%

64.3%

+15.5%+31.7%

86.4%

ADR (JPY)

5,110

4,380

-730

-14.3%

8,218

Total Portfolio (20 Hotels)

Feb 1, 2020
- Jul 31, 2020

Feb 1, 2021
- Jul 31, 2021

ChangeYOY

Feb 1, 2019
- Jul 31, 2019

Room Revenue (JPY M)

1,149

1,402

+253

+22.0%

3,722

Total Revenue (JPY M)

1,269

1,543

+274

+21.6%

4,069

RevPAR (JPY)

2,323

2,705

+381

+16.4%

6,853

Occupancy

44.2%

57.4%

+13.3%+30.0%

86.2%

ADR (JPY)

5,258

4,708

-550

-10.5%

7,946* Excludes HOTEL EMIT SHIBUYA, Capsule Plus Yokohama (formerly Grandpark-Inn 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.

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Hotel Demand Recovering
YOY by Region (Feb 2021 – July 2021)
RevPAR

Occupancy

ADR

Total
Portfolio

Hokkaido

Tokyo

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

Tokai/
Chubu

Kyoto

Osaka

+37%
+28%

+31%

+29%
+14%
+10%

+16%

Kobe

+50%

+26%

+9%

+4%

Kyushu

+33%

+21%

+19%

Chugoku/
Shikoku+6% +7%

-4%
-10%

-13%
-20%
-28%

-30%
-43%
-53%

-56%

-67%
-75%

(JPY)

RevPAR

3,047

4,048

2,334

867

331

2,860

2,451

2,417

No. Hotels

3

3

4

1

2

1

5

2

% of Total
Portfolio Rental
Income

7%

14%

26%

3%

6%

4%

32%

4%

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

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Monthly Operating Results Under Covid
RevPAR

RevPAR (left axis, JPY)

5,000
(JPY)
4,000

4,530

YOY (right axis)

State of
Emergency

4,495

150%

+122%

Go To Travel Campaign

+102%

100%
+72%

3,000
2,000
1,000

2,306

2,001

-17%
-34%

1,175
-63%

0
Jan
2020

Feb

-84%

Apr

May

Occupancy

-77%

-69%

-67%

Jun

Jul

Aug

Occupancy (left axis)

100%

2,592
2,220

+32%

2,054

-56%

-56%

Sept

Oct

-49%

-57%

-55%

Dec

Jan
2021

2,377

2,291

2,489

-50%

Nov

Feb

Mar

Apr

May

Jun

150%

+121%

Go To Travel Campaign

100%
+65%

72.2%
51.0%
-7%

20%

-18%

45.8%
29.5%

-44%

0%
Jan
2020

Feb

-66%

-71%

Apr

May

Mar

50.4%

52.5%

55.6%

-62%

-47%

-43%

48.5%

Jun

Jul

Aug

-36%

-34%

-28%

Sept

Oct

Nov

67.0%

64.2%

62.4%
55.2%

+26%

44.2%

34.0%
24.3%

Jul

YOY (right axis)

+80%

40%

0%

-39%

79.1%
60%

50%

-100%

State of
Emergency

80%

2,482

3,156
2,760

1,445
1,031

-83%

Mar

2,270

+58%

3,035

3,292

53.1%

53.7%

56.2%

0%

-24%
-42%

-44%

Dec

Jan
2021

50%

+46%

-50%
-100%

Feb

Mar

Apr

May

Jun

Jul

Major Events
Mar 2020 State of emergency
Jun 2020 Ban on travel between prefectures lifted
Oct 2020 Tokyo added to Go To Travel campaign
Dec 2020 Restrictions on entry from overseas

Feb 2021 Vaccine rollout begins with healthcare workers
Apr 2021 Vaccine rollout expanded to the elderly
Jul 2021 Tokyo Olympics* Excludes Washington Hotel Plaza Shimonoseki Eki Nishi because the operator did not provide consent to disclose information© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

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Relatively Small Decrease in Ichigo Hotel RevPAR vs. 2019
Ichigo Hotel RevPAR (vs. 2019) and Hotel Reservations+40%
Business Hotels

Full-Service Hotels

Resort Hotels

Japanese Inns

Number of Guests

Ichigo Hotel RevPAR

+20%

0%

-20%

-40%

-60%

-80%

-100%

Jan
2020

Feb

Mar

Apr

May

Jun

Jul

Aug

Sept

Oct

Nov

Dec

Jan
2021

Feb

Mar

Apr

May

Jun

* Calculated by Ichigo Investment Advisors based on Japan Tourism Agency (JTA) “Statistical Survey of Travelers”

−
−
−
−
−

Demand temporarily recovered due to the Go To Travel campaign in October andNovember 2020
After January 2021, demand gradually recovered on back of the vaccine rollout, but
slowed due to an increase in case numbers and additional state of emergencies
Business hotel RevPAR decrease vs. 2019 was minimal compared to other hotel types
Decrease in Ichigo Hotel RevPAR better than business hotels after February 2021
Hotel market is expected to recover due to Japan’s vaccination rate reaching c. 60%* Ichigo Hotel RevPAR is that for variable rent hotels© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

13

Driving Stability via Contract Renewals and Rebranding
Hotel Name

Lease Terms

Jun 2020

Smile Hotel Tokyo Asagaya

Variable+Fixed
Rent

Lease Expiry• Increased fixed rent
• Increased variable rent

Oct 2020

The OneFive Okayama(formerly Comfort Hotel Okayama)

Fixed Variable+Fixed
Rent

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

Oct 2020

The OneFive Fukuoka Tenjin(formerly Valie Hotel Tenjin)

Variable+Fixed
Rent

Rebranding• Operator change to Hakata Hotels• Revised variable rent clauseFeb 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 Expiry• Decreased fixed rent
• Increased variable rent

Sep 2021

The OneFive Osaka Sakaisuji(formerly Chisun Inn
Osaka Hommachi)

Variable+Fixed
Rent

Rebranding• Operator change to Hakata Hotels• Revised variable rent clause

2021

1 HotelVariable+Fixed
Rent

Lease Expiry

Plan

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

• Operator to be selected from among multiple

candidates, including the current operator

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Sponsor Support Driving Stability
Hakata Hotels (Ichigo’s wholly-owned subsidiary)− A hotel operator with expertise in AI revenue management systems (PROPERA)
that operates 12 hotels across Japan, with a focus in the Hakata (Fukuoka) area
 Maintained high occupancy despite occupancy decrease at other hotels(Hotels using PROPERA achieved 90% occupancy during the July 2021 fiscal period)− Offers competitive rates and strong collaboration− Became the operator of Chisun Inn Osaka Hommachi (rebranded as The
OneFive Osaka Sakaisuji) in September 2021, following on from becoming theoperator of the Okayama and Fukuoka Tenjin hotels.
− Selected as operator among multiple candidates due to better overall terms− Helps to avoid absence of a hotel operator under Covid uncertainty

Investment Corporation Bond Issuance (JPY 500 million, November 2020)− Allottee: Ichigo (100%)
 Demonstrates strong commitment and support from the sponsor− Objective: To further strengthen Ichigo Hotel’s financial base amid an uncertain
market environment© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

15

Covid Response
Safety Measures and Services for Guests− Installed self-check-in terminals− Offering remote work options (strengthened Wi-Fi networks to accommodate
remote work demand)− Provision of hand sanitizers, periodic disinfections, and mandatory maskwearing for employees− Confirming guest and staff healthTemporarily Closed Hotels during the July 2021 Fiscal Period

Hotel

Dates Closed

Current Status

The OneFive Osaka Sakaisuji(formerly Chisun Inn Osaka Hommachi)

Apr 17, 2020 –Aug 31, 2021

Selected Hakata Hotels as new operator, replacing
previous operator whose lease contract ended on Dec 31,
2020
Rebranded and reopened as The OneFive Osaka Sakaisuji

Capsule Plus Yokohama(formerly Grandpark-Inn Yokohama)

Nov 1, 2020 –Feb 28, 2021

Rebranded and reopened as Capsule Plus Yokohama

Nest Hotel Osaka Shinsaibashi

Nest Hotel Sapporo Odori

Jan 13, 2021 –Mar 31, 2021
Apr 18, 2021 –Aug 5, 2021
Jan 17, 2021 –Feb 7, 2021

Reopened

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

16

Shareholder Program (1)Shareholder Hotel Discount Program
Program Established to Express Gratitude to Ichigo Hotel Shareholders
and to Support the Hotel Industry Impacted by Covid
Special Discount Rates (including hotels not owned by Ichigo Hotel)
Minacia Co., Ltd.
 Hotel Wing International
 Special rate 10% lower than rates on hotel website
 39 Hotel Wing International Hotels located acrossJapan, from Hokkaido to Kagoshima

Greens Co., Ltd.
 Choice Hotels
 Premium rates set at each hotel
 71 Comfort brand hotels located across Japan, from
Hokkaido to Okinawa

 Greens Hotels
 Available at member-only fixed rates set at each hotel A diverse brand of 28 hotels mainly in Mie and Aichi
prefectures and the Hokuriku region© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

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Shareholder Program (2)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 listed solar power producer that it manages, in its
shareholder program (65,000 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 development.
Events & Gifts− Ichigo Kids J.League Events
 Escort players onto field High-fives with players
 Other programs− J.League Merchandise Autographed jerseys from all
J.League clubs
 Ichigo original J.League towels
 Autographed official match balls− J.League Online Events
Ichigo J.League Shareholder Program Website Landing Page
© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

18

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

19

Sustainability Initiatives
Minimizing Environmental Impact of Ichigo Hotel-Owned Assets
Environmental Certifications− HOTEL EMIT SHIBUYA (BELS 4 Stars)− Joined GRESB Real Estate Assessment in 2021

Shifting to Renewable Energy
Ichigo RE100 Target: Sourcing 100% Renewable Electricity Across Its Operations
by 2025− In line with sponsor Ichigo joining RE100, Ichigo Hotel will shift to using
renewable electricity across its operations− Target: source 100% of electricity needs across Ichigo Hotel-owned assets fromrenewable energy− Transition starting from the January 2022 fiscal period© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

20

Market Environment & Forecast Assumptions
Hotel Market Remains Uncertain− Full-scale recovery is expected to take time despite gradual hotel demand
recovery on the back of Covid vaccine rollout (57.6% complete for first-time
vaccination as of Sep 1st)

Occupancy and ADR Forecasts for 15 Variable Hotels− Forecasting Occupancy at -20~-30% & ADR at -40~-50% vs. 2019 (Pre-Covid)
levelsJanuary 2021
ActualOccupancy
ADR

ADR

January 2019
(Reference)

YOY

53.4%

63.9%

+19.7%

92.1%

JPY 4,371

JPY 4,548+4.0%

JPY 8,488

July 2021
ActualOccupancy

January 2022
Forecast

July 2022
Forecast

July 2019(Reference)

YOY

64.3%

71.4%

+11.0%

86.2%

JPY 4,380

JPY 5,152+17.6%

JPY 8,475* Data of 10 hotels for January 2019 fiscal period, 12 hotels for July 2019 fiscal period, 14 hotels for January 2021 & July 2021 fiscal
periods, and 15 hotels for January 2022 & July 2022 fiscal periods

Continuing with JPY 37M Expense Reserve for Covid-Related Hotel
Operator Support and/or Potential Rent Reductions for January 2022 Fiscal
Period© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

21

January 2022 Forecast
Dividend JPY 724, -12.0% YOY(JPY million)
Jan 2022
Previous
Forecast(Mar 2021)

Jan 2021
Actual (A)Operating Revenue

Jan 2022
Revised
Forecast (B)(B) - (A)

Major Factors for Variation

1,035

1,058

1,007

-28

Variable Rent

-3

81

30

+33

Fixed Rent

993

932

933

-60

Other (Gains on Sales, etc.)

45

44

44

-1

626

663

670

+44

Repair & Maintenance

43

33

36

-7

Depreciation

341

347

351

+10

Operating Profit

409

395

336

-73

Recurring Profit

210

184

111

-99

Borrowing-related expenses +24
Fall-off of non-operating income -2

Net Income

209

183

184

-25

Extraordinary gains +74 (legal settlement)

JPY 823

JPY 719

JPY 724-JPY 99

NOI

844

833

777

-67

Post-Depreciation NOI

503

486

425

-78

Capex

123

345

388

+265

Operating Expenses

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

January 2021: Rent from sold asset (Naha) +7
Increase in variable rent +29 (Valie Hiroshima, Kumamoto, Yokohama)Decrease in variable rent -3 (Asagaya, Fukuoka, Kurashiki)

Increase in fixed rent +61 (Okayama, Fukuoka, Shibuya)
Decrease in fixed rent -121 (Nagoya, Osaka Sakaisuji, Yokohama, Kurashiki)

Increase in property tax +10 (Shibuya, Shimonoseki, Matsuyama), Covidrelated reserve +37
Decrease in AM fee -6
Increase in repair expenses +15 (Yokohama, Kurashiki, Asagaya, Shinsaibashi,
Shimonoseki)
Decrease in repair expenses -22 (Fukuoka, Nest Osaka, Okayama, Valie
Hiroshima)
Increase in Depreciation: Okayama, Yokohama, Urbain Hiroshima,
Shimonoseki, Kumamoto-12.0% YOY+0.7% (+ JPY 5) vs. previous forecast

22

July 2022 Forecast
Dividend JPY 666, -36.9% YOY(JPY million)
Jul 2021
Actual (A)Jul 2022
Forecast (B)Major Factors for Variation(B) - (A)Operating Revenue

1,117

1,024

-93

Variable Rent

126

79

-47

Increase in variable rent +77 (Kumamoto, Matsuyama, Sapporo Ekimae, Kurashiki,
Nagoya)Decrease in variable rent -124 (Valie Hiroshima)

Fixed Rent

947

902

-45

Increase in fixed rent +29 (Okayama, Fukuoka)
Decrease in fixed rent -74 (Nagoya, Kurashiki, Osaka Sakaisuji)

Other (Gains on Sales, etc.)

44

43

-1

652

629

-23

Decrease in AM fee -17, Other expenses +2

Repair & Maintenance

46

34

-12

Increase in repair expenses +10 (Kyoto, Central International Airport, Asagaya,
Shimonoseki)
Decrease in repair expenses -22 (Osaka Sakaisuji, Matsuyama, Yokohama, Kurashiki)

Depreciation

347

351

+4

Increase in Depreciation: Fukuoka, Okayama, Yokohama

Operating Profit

465

395

-70

Recurring Profit

269

170

-99

Net Income

268

169

-99

JPY 1,055

JPY 666-JPY 389

NOI

912

832

-80

Post-Depreciation NOI

565

481

-84

Capex

335

546

+211

Operating Expenses

Dividend

Borrowing-related expenses +18, Interest expenses +9
Fall-off of non-operating income -2-36.9% YOY© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

23

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

24

Ichigo Sustainability Policy
Harmony with the Environment
Ichigo actively monitors and minimizes the environmental impact of its business operations.

Energy Conservation, CO2 Reduction, and Recycling
Ichigo seeks to contribute to a low-carbon, low-waste society by reducing energy
consumption, extending the useful life of assets, actively recycling, reducing waste
production and water consumption, and implementing green procurement measures.

Regulatory and Environmental Compliance
Ichigo complies with all environmental laws and regulations and Ichigo’s own independentlyestablished environmental rules. Ichigo also carefully monitors and complies with all applicablechanges in laws and regulations.

Training and AwarenessIchigo promotes understanding of its Sustainability Policy and works to increase sustainability
awareness among all Ichigo employees.

Sustainability Performance Communication and Disclosure
Ichigo communicates its Sustainability Policy and Ichigo’s sustainability initiatives to society atlarge. Ichigo also obtains certifications for its sustainability activities on an ongoing basis.

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

25

Ichigo ESG – Environmental
Contributing to a Low-Carbon World

Sustainable Real Estate

Clean Energy
Annual Power Generation 186,921,674kWh

Preserve & Improve Real Estate to End Wasteful
Demolition

Equivalent to annual energy consumption of
62,307 households
The Federation of Electric Power Companies ofJapan - Annual energy consumption perhousehold 3,000kWh‒ Lengthen useful life of real estate‒ Shrink environmental footprint by reducing
wasteful demolition & consumption of raw
materials, energy, & human talent in construction
LowestImpactWasteful
Demolition
HighestEfficiency

Annual CO2 Reduction 123,368,301kg
Equivalent to annual CO2 emission of 53,638
cars
Ministry of Environment
Annual CO2 emission per car c. 2,300kg(Jul 2020 ~ Jun 2021 Actuals – Ichigo & Ichigo Green)Sponsor Ichigo Joins RE100
Ichigo RE100 Target: Source 100% of Electricity Needs
Across Its Operations From Renewable Energy by 2025
(Including Ichigo Office and Ichigo Hotel Assets)

Environmental Productive Use of Idle Land for Clean Energy
will not build power plants that require theSustainability Ichigo
clearing of wooded land or the altering of the
For a Better landscape in a way that increases the risk of floods,
World
landslides, or other water-related disasters, or thatface opposition from local communities.

Ichigo Hotel (3463) & Ichigo Office (8975) Initiatives
Ichigo Hotel (3463)‒ Environmental Certifications

Ichigo Office (8975)‒ Environmental Certifications

HOTEL EMIT SHIBUYA (BELS 4 Stars)

15 certifications (14 assets), 25.1% of total leasable area

‒ GRESB‒ GRESB (since 2016)

Joined in 2021

Green Star (Highest Ranking) 4 years in a row‒ Sourcing Renewable Energy‒ Sourcing Renewable Energy

Transition starting from the January 2022 fiscal period

Transition to 100% renewable energy at all assets byApril 2022 (excluding partially-owned and co-owned assets)© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

26

Ichigo ESG – Social
Supporting Local Communities

Working With Tenants− Conduct tenant surveys to understand needs toimplement effective value-add− Exclusive investor for Oshii Mamoru’s new
anime VLADLOVE to promote Japan’s anime
culture and build synergies with Ichigo’s retailasset AKIBA CULTURES ZONE
− Support tenant sales channel expansion andsales growth− Operate self-storage and laundromats to
support livelihood− Ichigo’s Boutique Hotel THE KNOT
A place where visitors, communities, and the oldand the new can come together− Miyako City, Nanbu Wholesale Market
Foster community interactions− J.League Top Partner
Promote community development, revitalize local
economies, and renovate & upgrade stadiums− TSUBASA+ AR Smartphone Game
Promote Japanese culture and community links− Smart Agriculture

Make The World More Sustainable
HR & Internal Start-Ups− Ichigo University for employees
Taught by subject matter experts− Ichigo Sustainable Lab
Promotion of R&D and internal start-ups− Support for Employees
100% return rate for employees whotake maternity/paternity leave− Women in Leadership
32% of management positions held by
WomenSports & Arts
− Support National & World-Class
Athletes− Support University of Miyazaki’s
Program for Children with Cancer− Support community-basedsoccer clubs− Support artists withdisabilities
Weightlifting Athlete
Hiromi Miyake© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Disaster Response− Typhoon disaster preventative
measures− Rapid damage assessment− Rapid disaster response
On-site inspections and measures toprevent secondary disasters, preserve
asset value, and supply essential
items to local communities− Neighborhood watch− Street cleaning and snow shoveling27

Ichigo ESG – GovernanceFirst J-REIT With No Fixed Fee,
Performance Fee-Only Structure

Best Practice Governance Performance-linked fee structure to
support shareholder value creation
 Pro-active, dynamic management of
Ichigo Hotel assets on behalf ofshareholders

REIT
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)

Asset Management Company (AMC)••••

Best Practice
Majority of AMC Directors (3 of 5) are Independent
Directors
Independent asset management teams within AMC
ensures best-practice execution on behalf of Ichigo
Hotel
Compliance and Audit are directly under the AMC
President to monitor and review critical compliancematters
Ensure objectivity by including third-party,
independent lawyers and accountants in theInvestment Committee and Risk & Compliance
Committee

Ichigo Hotel (3463) and Ichigo Office (8975) are the only J-REITs(out of 62)
that both have an Asset Management Company (AMC) board thathas 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

28 of 62 J-REITS have AMC
Presidents serving as
Executive Director of the REIT

Only 3 Asset Management
Companies have any
Independent Directors

Ichigo Hotel:
All Directors are
Independent

Ichigo Investment
Advisors:
3 of 5 Directors are
Independent* Based on information as of August 31, 2021

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

28

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

29

Hotel Map
Tokyo

Hokkaido

Kanto
C-4

C-1

C-3

Smile HotelTokyo Asagaya

Hotel Livemax
NihombashiHakozaki

HOTEL
EMIT
SHIBUYA

Kinki (Kyoto/Osaka/Kobe)
E-1

Hokuriku/Tokai

B-1

A-1

A-2

A-3

D-1

Capsule Plus
Yokohama

Nest Hotel
Sapporo Ekimae

Nest Hotel
Sapporo Odori

ComfortHotel Kushiro

Comfort Hotel
Hamamatsu

F-1

F-2

F-3

G-1

D-3

D-4

Comfort Hotel
Hotel Wing
International Central International
AirportNagoyaKyushuChugoku/Shikoku

E-3

D-2

Comfort Hotel
Suzuka▶ Sapporo
A-1 A-2

G-3▶ Kushiro
A-3

Variable Rent
Fixed Rent
Smile Hotel
Kyoto Shijo

E-4

Hotel Wing International
Kobe Shin Nagata Ekimae

Chisun Inn
Osaka
Hommachi*

The OneFive
Okayama

F-4

Nest Hotel
Matsuyama

F-5

Urbain Hiroshima
Executive

The OneFive
TenjinNest Hotel
Kumamoto

E-5

Nest Hotel Osaka
Shinsaibashi

23 Hotels
JPY 51.9B

F-6▶ Nagoya D-2▶ Kyoto E-1

Court Hotel
Kurashiki

Valie Hotel
Hiroshima

Washington Hotel
Plaza Shimonoseki
Eki Nishi* Rebranded and reopened as The OneFive Osaka Sakaisuji in September 2021

▶ Osaka E-3 E-5▶ Kurashiki F-4▶ TokyoC-1 C-3 C-4▶ Yokohama B-1▶ Shimonoseki F-6▶ Fukuoka
G-1▶ Hamamatsu D-1▶ Matsuyama▶ Aichi D-3
F-2▶ Suzuka D-4▶ Kumamoto▶ Kobe E-4
G-3▶ Okayama F-1▶ Hiroshima F-3 F-5(July 2021 rent-basis)© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

30

Portfolio Growth

Acquisitions

IPO(Nov 30, 2015)

Jan 2017
Fiscal Period

July 2017 through July 2021
Fiscal Periods

IPO Acquisitions
9 hotels
JPY 20.4B

PO Acquisitions
10 hotels
JPY 27.2B

July 2017
1 hotelJPY 1.4B

Jan 2018
1 hotelJPY 1.8B

Jan 2019
1 hotelJPY 1.7B

July 2019
2 hotels
JPY 3.7B(Appraisal
NOI Yield
5.9%)(Appraisal
NOI Yield
5.5%)(Appraisal
NOI Yield
5.0%)(Appraisal
NOI Yield
6.3%)(Appraisal
NOI Yield
6.9%)(Appraisal
NOI Yield
6.9%)

None

23 Hotels
JPY 54.4B

Sales

None

None

None

None

1 HotelJPY 2.7B
Gains on Sale
JPY 0.69B

Portfolio
Size

9 Hotels : JPY 20.4B(January 2016 end)

19 Hotels
JPY 47.6B

20 Hotels
JPY 49.1B

21 Hotels
JPY 50.9B

21 Hotels
JPY 50.7B

IPO

Location

Kobe Osaka
7.3% 8.0%
Nagoya
13.1%
Kyushu6.8%

Geographic Diversification
Increases Earnings Stability

Kyoto
39.6%

Steady Portfolio Growthvia Acquisitions

Hokkaido
17.7%
Tokai
7.6%

Jan 2020
None

2 Hotels
JPY 9.7B
Gains on Sale
JPY 1.94B

July 2020 Jan 2021
2 hotels July 2021
JPY 4.7B(Appraisal
NOI Yield
4.9%)

None

None

None

21 Hotels 23 Hotels 23 Hotels
JPY 47.1B JPY 51.9B JPY 51.9B
July 31, 2021
Yokohama Kobe
2.9%
Nagoya 2.9%
5.1%
Kyushu
Osaka
6.9%
17.8%
Hokkaido
7.5%
Tokyo
17.3%

Kyoto
8.6%
Chugoku/
Shikoku
17.2%
Tokai
13.8%

Acquisition price-basis© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

31

Portfolio Lease Details
Operator Diversification Driving Earnings Stability
Lease Terms

Fixed Rent

Fixed + Variable Rent

(as of July 31, 2021)

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(July 2021 Actual)

JPY 385M(35.9%)

JPY 108M(10.1%)

JPY 580M(54.0%)

Not Available2

JPY 1,073M(100%)

Number of Hotels

7 Hotels

2 Hotels

13 Hotels

1 Hotel23 Hotels

Total AcquisitionPrice

JPY 11.70B(22.5%)

JPY 4.16B(8.0%)

JPY 34.57B(66.6%)

JPY 1.49B(2.9%)

JPY 51.91B(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• 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• Valie Hotel Hiroshima• The OneFive Fukuoka
Tenjin• Court Hotel Kurashiki• HOTEL EMIT SHIBUYA• The OneFive Okayama• Chisun Inn Osaka
Hommachi1• Capsule Plus Yokohama–

1 Changed operator, and rebranded and reopened as The OneFive Osaka Sakaisuji in September 2021
2 Operator did not provide consent to disclose information© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

32

Individual Hotel Summary(as of July 31, 2021)
Lease Terms

Location

A-1 Nest Hotel Sapporo Ekimae

Variable + Fixed Rent

Sapporo5,734.93

2,160

2,112

2,590

5.1

+477

A-2 Nest Hotel Sapporo Odori

Variable + Fixed Rent

Sapporo5,638.78

1,450

1,470

1,830

5.0

+359

A-3 Comfort Hotel Kushiro

Fixed Rent

Kushiro, Hokkaido

3,180.58

300

288

421

5.5

+132

B-1 Capsule Plus Yokohama

Fixed Rent

Yokohama

1,183.26

1,490

1,561

1,310

4.8

-251

C-1 Smile Hotel Tokyo Asagaya

Variable + Fixed Rent

Tokyo

2,721.70

3,910

3,915

4,240

4.3

+324

Fixed Rent

Tokyo

853.00

1,360

1,287

1,400

4.6

+112

C-4 HOTEL EMIT SHIBUYA

Variable + Fixed Rent

Tokyo

1,470.52

3,700

3,809

3,960

3.6

+150

D-1 Comfort Hotel Hamamatsu

Fixed Rent

Hamamatsu, Shizuoka

4,173.92

1,550

1,419

1,750

5.2

+330

Variable + Fixed Rent

Nagoya5,255.66

2,670

2,689

2,470

4.8

-219

D-3 Comfort Hotel Central International Airport

Fixed Rent

Tokoname, Aichi

11,599.63

5,308

5,265

5,790

4.1

+524

D-4 Comfort Hotel Suzuka

Fixed Rent

Suzuka, Mie

2,186.65

300

271

359

5.0

+87

E-1 Smile Hotel Kyoto Shijo

Variable + Fixed Rent

Kyoto

4,891.84

4,480

4,519

3,570

4.5

-949

E-3 Chisun Inn Osaka Hommachi

Variable + Fixed Rent

Osaka

3,690.00

1,630

1,758

1,200

4.9

-558

E-4 Hotel Wing International Kobe Shin Nagata Ekimae

Variable + Fixed Rent

Kobe

4,540.90

1,490

1,388

1,810

4.7

+421

E-5 Nest Hotel Osaka Shinsaibashi

Variable + Fixed Rent

Osaka

8,057.26

7,600

7,583

5,460

4.4

-2,123

F-1 The OneFive Okayama

Variable + Fixed Rent

Okayama

5,543.70

1,200

1,208

1,800

5.7

+591

F-2 Nest Hotel Matsuyama

Variable + Fixed Rent

Matsuyama, Ehime

6,671.94

1,610

1,617

1,970

5.6

+352

Fixed Rent

Hiroshima

2,756.20

1,800

1,805

2,060

5.3

+254

F-4 Court Hotel Kurashiki

Variable + Fixed Rent

Kurashiki, Okayama

3,964.19

1,725

1,798

2,000

5.1

+201

F-5 Valie Hotel Hiroshima

Variable + Fixed Rent

Hiroshima

4,332.50

1,500

1,566

1,660

5.0

+93

Fixed Rent

Shimonoseki, Yamaguchi

5,709.35

1,080

1,098

1,180

4.9

+81

G-1 The OneFive Fukuoka Tenjin

Variable + Fixed Rent

Fukuoka

1,910.94

1,380

1,455

2,200

4.3

+744

G-3 Nest Hotel Kumamoto

Variable + Fixed Rent

Kumamoto

6,404.36

2,220

2,173

2,330

5.4

+156

Total (23 Hotels)

102,471.81

51,91352,06453,3604.7+1,295

Hotel Name

C-3 Hotel Livemax Nihombashi-Hakozaki

D-2 Hotel Wing International Nagoya

Hotel

Jul 2021 Appraisal
Unrealized
Value
Cap Rate Gains (JPY M)(JPY M)(B) - (A)(%)(B)

Leasable
Area
(m2)

Hotel
No.

F-3 Urbain Hiroshima Executive

F-6 Washington Hotel Plaza Shimonoseki Eki Nishi© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Acquisition
Price(JPY M)

Book Value(JPY M)(A)

33

July 2021 Fiscal Period Individual Hotel Operating Results(year-on-year)
Hotel
No.

Hotel Name

Lease Terms

Location

No. Of
Guest
Rooms

July 2021 (February 2021 - July 2021)
RevPAR (JPY)

Occupancy (%)

ADR (JPY)

Revenue (JPY M)

A-1

Nest Hotel Sapporo Ekimae

Variable + Fixed Rent

Sapporo

162

3,319

(+9.1%)

87.5%(+48.7%)3,795(-26.6%)124.8(+18.4%)

A-2

Nest Hotel Sapporo Odori

Variable + Fixed Rent

Sapporo

121

2,495

(-30.2%)

65.3%(+3.2%)

3,820(-32.3%)66.8(-24.6%)

A-3

Comfort Hotel Kushiro

Fixed Rent

Kushiro, Hokkaido

126

3,205

(+45.6%)

62.5%(+29.7%)5,129(+12.2%)77.3(+42.0%)

C-1

Smile Hotel Tokyo Asagaya

Variable + Fixed Rent

Tokyo

112

4,761

(+10.4%)96.4%(+25.5%)4,939(-12.0%)99.3(+9.3%)

C-4

HOTEL EMIT SHIBUYA

Variable + Fixed Rent

Tokyo

72

4,157

–

94.4%

4,405

–

54.3

–

D-1

Comfort Hotel Hamamatsu

Fixed Rent

Hamamatsu, Shizuoka

196

2,473

(+26.5%)50.7%(+29.5%)4,879(-2.3%)

87.7(+25.8%)

D-2

Hotel Wing International Nagoya

Variable + Fixed Rent

Nagoya224

1,535(-16.7%)40.0%(+26.2%)

3,836(-34.0%)69.8(+11.5%)

D-3

Comfort Hotel Central International Airport

Fixed Rent

Tokoname, Aichi

346

2,699

(+28.8%)38.7%(+52.6%)

6,977(-15.6%)173.4(+26.2%)

D-4

Comfort Hotel Suzuka

Fixed Rent

Suzuka, Mie

105

2,580

(+45.7%)51.8%(+35.2%)

4,983(+7.8%)

49.7(+44.9%)E-1

Smile Hotel Kyoto Shijo

Variable + Fixed Rent

Kyoto

144

867

(-67.0%)28.1%(-52.6%)3,079(-30.5%)24.0(-42.5%)E-3

Chisun Inn Osaka Hommachi

Variable + Fixed Rent

Osaka

130

–

–

–

–

–

–

–

–

E-4

Hotel Wing International Kobe Shin Nagata Ekimae

Variable + Fixed Rent

Kobe

133

2,860

(+31.5%)41.4%(+21.0%)6,913(+8.7%)

77.4(+32.4%)

E-5

Nest Hotel Osaka Shinsaibashi

Variable + Fixed Rent

Osaka

302

331

(-74.1%)

9.8%(-52.5%)3,362(-45.5%)

12.7(-70.4%)F-1

The OneFive Okayama

Variable + Fixed Rent

Okayama

208

2,364

(-2.6%)

89.6%(+64.2%)

2,638(-40.6%)

92.5(-5.6%)

F-2

Nest Hotel Matsuyama

Variable + Fixed Rent

Matsuyama, Ehime

190

2,308

(-9.4%)

54.3%(+5.0%)

4,252(-13.7%)

98.6(-10.1%)

F-3

Urbain Hiroshima Executive

Fixed Rent

Hiroshima

171

1,616

(-11.1%)

23.2%(-32.1%)

6,977(+31.0%)

50.0

–

F-4

Court Hotel Kurashiki

Variable + Fixed Rent

Kurashiki, Okayama

107

1,974

(-28.9%)34.2%(-33.6%)5,770(+7.0%)

47.7(+43.2%)

F-5

Valie Hotel Hiroshima

Variable + Fixed Rent

Hiroshima

171

7,261

(+228.4%)

96.6%(+78.2%)

7,519(+84.3%)234.2(+505.1%)

G-1

The OneFive Fukuoka Tenjin

Variable + Fixed Rent

Fukuoka

77

2,436(-41.1%)

90.4%(+30.4%)2,694(-54.8%)

39.7(+11.7%)

G-3

Nest Hotel Kumamoto

Variable + Fixed Rent

Kumamoto

201

2,409

(+26.9%)64.5%(+47.1%)

3,735(-13.8%)98.7(+19.6%)

Other

–

455

Variable Rent Hotels

2,523

2,815

(+12.9%)64.3%(+31.7%)4,380(-14.3%)

1,086.1(+20.4%)

Fixed Rent Hotels

1,230

2,496

(+23.7%)44.6%(+24.1%)

5,602(-0.3%)

457.6(+24.5%)

Total

3,753

2,705

(+16.4%)57.4%(+30.0%)4,708(-10.5%)

1,543.7(+21.6%)* 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.
© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

34

Individual Hotel Financials(JPY thousand)

Total

A-1

A-2

Nest
Hotel
SapporoEkimaeNest
Hotel
Sapporo
Odori

A-3

C-1

C-4

D-1

D-3

D-4

E-1

Comfort
Comfort
Comfort Smile Hotel HOTEL
ComfortHotel Central
Hotel
Hotel
Tokyo
EMIT
Hotel
International
SuzukaKushiroAsagaya SHIBUYA Hamamatsu
Airport

E-3

Smile
Hotel
Kyoto
Shijo

E-5

F-1

Chisun Inn
Osaka
Hommachi

Nest Hotel
Osaka
Shinsaibashi

F-2

F-4

F-5

G-1

G-3

The
Court
The
Valie Hotel OneFive
Nest Hotel
Hotel
OneFive
Hiroshima Fukuoka
Matsuyama
Kurashiki
OkayamaTenjinNest Hotel
Kumamoto

Other(A) Rental Income

1,117,958

31,12927,072

18,41961,60347,56855,361

151,441

15,44230,744

2,828

66,291

61,22736,323

31,665145,079

14,062

25,134

296,561

Fixed Rent

947,031

31,12927,072

18,41961,60347,56855,361

151,441

15,44230,744

2,828

66,291

61,22736,323

31,665

17,934

14,062

25,134

252,780

Variable Rent

126,577

–

–

–

–

–

–

–

–

–

–

–

–

–

–

126,545––

32

Other Rent

44,348

–

–

–

–

–

–

–

–

–

–

–

–

–

–

600

–

–

43,748(B) Rental Expenses

204,982

9,218

10,948

5,464

9,197

6,201

3,641

14,061

4,114

7,467

15,30917,612

7,035

10,451

9,074

6,391

6,370

8,324

54,095

Outsourcing
Fees

19,234

600

600

900

2,442

600

600

570

540

600

2,831

1,200

600

720

600

720

600

790

3,720

Insurance

3,286

177

190

95

99

70

114

323

55

151

113

279

167

227

118

151

63

210

674

RepairExpenses

46,520

3,062

1,601

48

2,578

507

268

111

1,374

1,451

8,815

1,633

2,097

4,678

3,907

1,080

1,987

2,218

9,097

Taxes

115,462

4,953

8,127

4,009

3,665

4,653

2,387

12,600

1,733

4,905

3,161

14,088

3,732

4,397

4,083

4,071

3,355

4,691

26,843

Other
Expenses

20,478

424

429

411

410

369

271

455

411

359

386

411

438

429

363

369

364

411

13,759NOI(A) - (B)

912,975

21,91016,123

12,95552,40541,366

51,719137,380

11,32823,276-12,481

48,67854,19225,871

22,591

138,687

7,692

16,810242,465(D) Depreciation

347,11216,03017,287

5,426

26,773

7,699

14,74434,905

4,145

16,5597,818

34,332

15,771

18,135

11,24821,057

8,065

19,45567,654

Net Rental
Income(C) - (D)565,863

5,880-1,163

7,528

25,632

33,66636,975

102,474

7,182

6,717

-20,299

14,34638,4207,736

11,342

117,630-373-2,644

174,811(C)* 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 Chisun Inn Osaka Hommachi, Smile Hotel Tokyo Asagaya and Nest Hotel Kumamoto are includedin 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.

35

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

Jan 2021
Rent

Ratio

Jul 2021
Rent

963,173–

1,023,281–

976,195

87.3%

Fixed Rent from Operators

935,606–

993,875–

947,031

84.7%

Other (Rent from Retail Tenants)

27,566–

29,405–29,164

2.6%

Variable Rent

-25,467–-3,942–

126,577

11.3%

Other (Utility Income)

15,371–

16,238–15,184

1.4%

Total

937,705

1,117,958

100%

Rent

Fixed Rent

Jul 2020
Rent

100%

1,035,576

100%

Ratio

Operating Results (Aug 2020 – Jul 2021)

RevPAR (right axis)

ADR (right axis)

Occupancy (left axis)

(JPY)

80%

8,000

60%

6,000

40%

4,000

20%

2,000

0%

0
Aug 2020

Sep 2020

Oct 2020

Nov 2020

Dec 2020

Jan 2021

Feb 2021

Mar 2021© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Apr 2021

May 2021

Jun 2021

Jul 2021

36

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

ADR(right)Operating Results (Aug 2020 – Jul 2021)

RevPAR(right)Occupancy(left)
(JPY)

100%

7,500

80%

6,000

60%

4,500

40%

3,000
1,500

Guest Rooms

162

20%

AcquisitionPrice

JPY 2.16B

0%0
Aug 2020

Nov 2020

Feb 2021

May 2021

A-2 Nest Hotel Sapporo Odori
Location

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

Nest Hotel Japan
Corporation

ADR(right)Operating Results (Aug 2020 – Jul 2021)

RevPAR(right)Occupancy(left)

100%

(JPY)
7,500

80%

6,000

60%

4,500

40%

3,000
1,500

Guest Rooms

121

20%

AcquisitionPrice

JPY 1.45B

0%0
Aug 2020© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Nov 2020

Feb 2021

May 2021

37

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* Changed operator and changed hotel name to Capsule Plus Yokohama in March 2021.

C-1 Smile Hotel Tokyo Asagaya
Location

Suginami-ku, Tokyo

Access1-minute walk from
Asagaya Station on JR
Chuo/Sobu LineOperator

K.K. Hospitality
Operations

ADR(right)Operating Results (Aug 2020 – Jul 2021)

RevPAR(right)Occupancy(left)
(JPY)

100%

7,500

80%

6,000

60%

4,500

40%

3,000
1,500

Guest Rooms

112

20%

AcquisitionPrice

JPY 3.91B

0%0
Aug 2020© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Nov 2020

Feb 2021

May 2021

38

Variable Rent Hotel Details
C-4 HOTEL EMIT SHIBUYA
Location

Shibuya-ku, Tokyo

Access6-minute walk from
Shibuya Station on JR,
Tokyu, Keio, andTokyo Metro Lines

Operator

Hakata Hotels Inc.

Guest Rooms

72

AcquisitionPrice

JPY 3.7B

ADR(right)Operating Results (Aug 2020 – Jul 2021)

RevPAR(right)Occupancy(left)
(JPY)

100%

7,500

80%

6,000

60%

4,500

40%

3,000

20%

1,500
0

0%
Aug 2020

Nov 2020

Feb 2021

May 2021

D-2 Hotel Wing International Nagoya
Location

NagoyaAccess2-minute walk from
Marunouchi Station on
both Nagoya Subway
Network SakuradoriLine and Tsurumai
Line

Operator

Minacia Co., Ltd.

ADR
(right)Operating Results (Aug 2020 – Jul 2021)

RevPAR(right)Occupancy(left)
(JPY)

100%

7,500

80%

6,000

60%

4,500

40%

3,000
1,500

Guest Rooms

224

20%

AcquisitionPrice

JPY 2.67B

0%0
Aug 2020© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Nov 2020

Feb 2021

May 2021

39

Variable Rent Hotel Details
E-1 Smile Hotel Kyoto Shijo
Location

Kyoto

Access5-minute walk from
Shijo Station on Kyoto
City Subway Karasuma
Line and Karasuma
Station on Hankyu
Kyoto Main LineOperator

K.K. Hospitality
Operations

Guest Rooms

144

AcquisitionPrice

JPY 4.48B

ADR(right)Operating Results (Aug 2020 – Jul 2021)

RevPAR(right)Occupancy(left)
(JPY)

100%

7,500

80%

6,000

60%

4,500

40%

3,000

20%

1,500

0%

0
Aug 2020

Nov 2020

Feb 2021

May 2021

E-3 Chisun Inn Osaka Hommachi
Location

Osaka

Access5-minute walk from
Sakaisuji-Hommachi
Station on Osaka
Municipal Subway
Chuo LineOperator

SHR Hotel Lease Co.,Ltd.

Guest Rooms
Acquisition
Price

ADR
(right)Operating Results (Aug 2020 – Jul 2021)

RevPAR(right)Occupancy(left)(JPY)

100%

10,000

80%

8,000

60%

6,000

40%

4,000

130

20%

2,000

JPY 1.63B

0%0
Aug 2020

Nov 2020

Feb 2021

May 2021* Changed operator and changed hotel name to The OneFive Osaka Sakaisuji on September 1, 2021.

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

40

Variable Rent Hotel Details
E-4 Hotel Wing International Kobe Shin Nagata Ekimae
ADR(right)

RevPAR(right)Occupancy(left)(JPY)

Location

Kobe

100%

10,000Access2-minute walk from
Shin Nagata Station
on JR Kobe Line and
JR Sanyo Honsen Line

80%

8,000

60%

6,000

Minacia Co., Ltd.

40%

4,000

Guest Rooms

133

20%

2,000

AcquisitionPrice

JPY 1.49B

0%Operator

Operating Results (Aug 2020 – Jul 2021)

0
Aug 2020

Nov 2020

Feb 2021

May 2021

E-5 Nest Hotel Osaka Shinsaibashi
Location

Osaka

Access1-minute walk from
Nagahoribashi Station
on Osaka Municipal
Subway Sakaisuji LineADR
(right)Operating Results (Aug 2020 – Jul 2021)

RevPAR(right)Occupancy(left)
(JPY)

100%

7,500

80%

6,000

60%

4,500

Nest Hotel Japan
Corporation

40%

3,000

Guest Rooms

302

20%

1,500

AcquisitionPrice

JPY 7.60B

Operator0%0
Aug 2020© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Nov 2020

Feb 2021

May 2021

41

Variable Rent Hotel Details
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 2020 – Jul 2021)

RevPAR(right)Occupancy(left)
(JPY)

100%

7,500

80%

6,000

60%

4,500

Hakata Hotels Inc.

40%

3,000

Guest Rooms

208

20%

1,500

AcquisitionPrice

JPY 1.20B

0%Operator0
Aug 2020

Nov 2020

Feb 2021

May 2021

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 2020 – Jul 2021)

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 2020© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Nov 2020

Feb 2021

May 2021

42

Variable Rent Hotel Details
F-4 Court Hotel Kurashiki
Location

Kurashiki, Okayama

Access8-minute walk from
Kurashiki Station on
JR Sanyo Main LineADR
(right)Operating Results (Aug 2020 – Jul 2021)

RevPAR(right)Occupancy(left)(JPY)

100%

10,000

80%

8,000

60%

6,000

The Court Co., Ltd.

40%

4,000

Guest Rooms

107

20%

2,000

AcquisitionPrice

JPY 1.73B

0%Operator0
Aug 2020

Nov 2020

Feb 2021

May 2021

F-5 Valie Hotel Hiroshima
Location

Hiroshima

Access3-minute walk from
Jogakuin-mae Station
on Hiroden Tram LineADR
(right)Operating Results (Aug 2020 – Jul 2021)

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 2020© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Nov 2020

Feb 2021

May 2021

43Variable Rent Hotel Details
G-1 The OneFive Fukuoka Tenjin
ADR(right)

RevPAR(right)Occupancy(left)(JPY)

Location

Fukuoka

100%

7,500

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

80%

6,000

60%

4,500

Hakata Hotels Inc.

40%

3,000

Guest Rooms

77

20%

1,500

AcquisitionPrice

JPY 1.38B

0%Operator

Operating Results (Aug 2020 – Jul 2021)

0
Aug 2020

Nov 2020

Feb 2021

May 2021

G-3 Nest Hotel Kumamoto
Location

Kumamoto

Access2-minute walk from
Nishikarashimacho
Station on Kumamoto
City Tram LineADR
(right)Operating Results (Aug 2020 – Jul 2021)

RevPAR(right)Occupancy(left)
(JPY)

100%

7,500

80%

6,000

60%

4,500

Nest Hotel Japan
Corporation

40%

3,000

Guest Rooms

201

20%

1,500

AcquisitionPrice

JPY 2.22B

0%Operator0
Aug 2020© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Nov 2020

Feb 2021

May 2021

44

Fixed Rent Hotel Details
A-3 Comfort Hotel Kushiro
Location

Kushiro, Hokkaido

C-3 Hotel Livemax Nihombashi-Hakozaki
Location

Chuo-ku, Tokyo

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

Access3-minute walk from
Suitengumae Station
on Tokyo Metro
Hanzomon LineOperator

Greens Co., Ltd.

Operator

Live Max Inc.

Guest Rooms

126

Guest Rooms

48

AcquisitionPrice

JPY 300M

AcquisitionPrice

JPY 1.36B

D-1 Comfort Hotel Hamamatsu
Location

Hamamatsu, Shizuoka

D-3 Comfort Hotel Central International Airport
Location

Tokoname, Aichi

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

Access5-minute walk from Central
International Airport,
3-minute walk from Central
International Airport Station
on Meitetsu Airport LineOperator

Greens Co., Ltd.

Operator

Greens Co., Ltd.

Guest Rooms

196

Guest
Rooms

346

AcquisitionPrice

JPY 1.55B

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

JPY 5.31B

45

Fixed Rent Hotel Details
D-4 Comfort Hotel Suzuka

F-3 Urbain Hiroshima Executive
Location

Hiroshima

Access3-minute walk from
Shirako Station on
Kintetsu Nagoya Line

Access6-minute walk from
Hiroshima Station on
JR Sanyo Shinkansen
and Sanyo Main LineOperator

Greens Co., Ltd.

Operator

Yuki Corporation

LocationSuzuka, Mie

Guest Rooms

105

Guest Rooms

171

AcquisitionPrice

JPY 300M

AcquisitionPrice

JPY 1.80B

F-6 Washington Hotel Plaza Shimonoseki Eki Nishi
Location

Shimonoseki,
Yamaguchi

Access3-minute walk from
Shimonoseki Station
on JR Sanyo MainLine

Operator

Washington HotelCorp.

Guest Rooms

238

AcquisitionPrice

JPY 1.08B© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

46

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

47

Stable Financial Base
Outstanding Loan Balance
Jul 31, 2019
AmountJan 31, 2020

Jul 31, 2020

Jan 31, 2021

Jul 31, 2021

JPY 25.47B

JPY 25.47B

JPY 25.47B

JPY 25.47B

JPY 25.47B

Long-Term Loan Ratio

100%

100%

93.1%

72.5%

70.7%

Fixed Rate Ratio

83.5%

83.5%

91.4%

70.7%

70.7%

Average Interest Rate

0.86%

0.88%

0.87%

0.82%

0.75%

Average Remaining Maturity

3.0 years

2.5 years

2.5 years

2.3 years

1.8 years

LTV (Total Assets Basis)

43.0%

41.5%

43.6%

43.3%

43.2%

* The above does not include investment corporation bonds.

Distribution of Loan Maturities(JPY M)
8,000
Fixed Rate
Floating Rate
Bonds

7,000
6,000

4,500

4,000

4,500
2,500
500
2,000

3,000
2,000

2,220

1,800
450
0
Jan 2022

Jul 2022

Jan 2023

Jul 2023

Jan 2024

Jul 2024

Jan 2025

Jul 2025© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Jan 2026

Jul 2026

Jan 2027

Jul 2027

48

Loan Details
Loan

LenderAmount(JPY million)(as of July 31, 2021)

Floating/
Fixed

Interest Rate(%)

Borrowing Date

Maturity

Term Loan 4

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

4,500

Fixed

0.90750%

August 17, 2016

February 28, 2023

Term Loan 5

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

4,500

Fixed

0.98500%

August 17, 2016

August 31, 2023

Term Loan 7

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

1,800

Fixed

0.78750%

August 1, 2017

January 31, 2023

Term Loan 9

SMBC, Mizuho, Shinsei, Resona

1,500

Fixed

0.92000%

November 30, 2018

November 29, 2024

Term Loan 10

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

2,220

Fixed

0.75450%

April 25, 2019

April 30, 2024

Term Loan 11

SMBC, Mizuho, Shinsei, Resona, Aozora

1,500

Fixed

0.73575%

July 19, 2019

November 29, 2024

Term Loan 12

SMBC

450

Variable

0.52909%

February 28, 2020

February 28, 2022

Term Loan 13

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

2,000

Fixed

0.65600%

February 28, 2020

February 27, 2026

Term Loan 15

SMBC, Mizuho, Shinsei, Resona

7,000

Variable

0.50727%

November 30, 2020

November 29, 2021

Total Borrowings

25,470

Average 0.75%

Average Remaining Loan Term 1.8 years

Issue Amount(JPY million)

Interest Rate

Redemption DateFirst Unsecured Investment Corporation Bond
November 25, 2020 (Callable bonds subordinated and limited toqualified institutional investors)

500

2.00%

Total Interest-Bearing Liabilities

25,970

Average 0.78%

Issue Date

Name

April 30, 2026

Lender Composition
Fukuoka
Nishi3%
NipponCity
4%

Aozora1%

Resona
10%

Bond
2%

SMBC
38%

Shinsei
12%
Mizuho30%

Fixed vs. Floating

Issuance Period

5.4 years

Variable
28.7%

Fixed*
71.3%

Average Remaining Loan Term 1.9 years* Includes interest fixed via swaps© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

49

Shareholder Composition
Major Shareholders (as of July 31, 2021)

By Number of Shares Held
No. OfShares

Name

Share

1

Custody Bank of Japan, Ltd.,
Trust Account24,741

9.7%

2

The Master Trust Bank of Japan,
Trust Account24,6299.7%

3

Ichigo Trust Pte. Ltd.

10,9084.3%

4

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

9,417

3.7%

5

Ichigo Inc. (Sponsor)

6,500

2.5%

6

Custody Bank of Japan, Ltd.,
Securities Investment Trust Account

4,933

1.9%

7

Banshu Shinkin Bank

4,900

1.9%

8

BNP PARIBAS SECURITIES SERVICESLUXEMBOURG/JASDEC/SECURITIES－AIFM

4,352

1.7%

9

Individual Shareholder

3,140

1.2%

10

DFA INTERNATIONAL REAL ESTATESECURITIES PORTFOLIO

3,112

1.2%

Total

96,63237.9%

Foreign Corporations & Individuals
Non-Financial Domestic Corporations

Domestic Financial Institutions
Domestic Individuals(Shares)

34,316(13.5%)

38,334(15.0%)

36,820(14.4%)

16,244(6.4%)

15,430(6.1%)

16,260(6.4%)

75,764(29.7%)

81,103(31.8%)

125,446(49.2%)

120,791(47.4%)Jan 2021(254,974 shares)

Jul 2021(254,974 shares)

65,558(25.7%)

138,856(54.5%)

Jul 2020(Outstanding Shares) (254,974 shares)

By Number of Shareholders
Jul 31, 2021
Jul 31, 2020
Jan 31, 2021
Shareholders Shareholders Shareholders
Share
Domestic Individuals
18,68816,985
16,17897.5%
Domestic Financial Institutions
38
36
35
0.2%
City banks, trust banks
4
4
4–
Regional banks––––
Other (including securities companies)
34
32
31
0.2%
Non-Financial Domestic Corporations
248
232
226
1.4%
Foreign Corporations & Individuals
124
144
154
0.9%
Total
19,09817,397
16,593100%© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

50

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

51

Ongoing Actions to Drive Increased Shareholder Value
Portfolio Growth & Diversification Drive Earnings Growth & Stability
Organic Growth

External Growth

Current Environment• Both Japanese and inbound demand has dropped
significantly due to Covid, generating ongoing impact on
the hotel market• Supply is exceeding demand in some areas in Japan due
to excessive number of new hotel openings• Financial strength of hotel operators needs to be closely
monitored to verify their rent-paying ability• No new growth driver is currently expected

Current Environment• Sales and acquisitions limited due to market uncertainty• Market recovery is expected after vaccine & treatment
regimes become available• Competition for quality assets is expected to intensify

Actions• Proactively execute value-add capex tailored to each hotel• Sell hotels with limited growth potential• Increase earnings by revising fixed rent and variable rent
terms at lease renewal• Grow with sponsor support (Hakata Hotels/PROPERA)

Actions• Continue to grow portfolio of lodging-focused hotels, ahotel type with stable earnings• High underlying land values reflect Ichigo Hotel's highlocation attractiveness and value• Ichigo Hotel's focus on major regional cities withconvenient public transport access and revenue upsidefrom local events further reinforces earnings stability• Geographic diversification and centrally-located hotels withstable demand also support high earnings stability

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

52

Growth Strategy Roadmap
Flexibly Responding to Market Environment
Stage I

Stage II

• Drive higher earnings via economies of scale fromincreased asset size
• Invest primarily in lodging-focused hotels• Acquisition of conversion-feasible assets and lodging
facilities such as serviced apartments• Asset acquisitions via SPCs
• Asset acquisitions using low-cost borrowing capacity (LTV)• Construct a diversified portfolio to pursue both income
stability and earnings growth• Maximize dividend and earnings via unrealized gains via
asset acquisitions and sales• Acquire prime-location full-service hotels and resort hotels in
addition to lodging-focused hotels• Increase portfolio size and generate scale efficiencies via
acquisitions of newly built hotels in addition to value-add ofexisting hotels• Minimize expenses via collaboration with operators• Increase earnings via more favorable lease terms,
rebranding, etc.

• Examine opportunities for large-scale renovations andrebranding to increase earnings• Further increase earnings via more favorable lease terms,
rebranding, etc.

Financing• Enhance operational efficiency by monitoring operations and providing advice to partner hotel operators• Increase rents and earnings through value-add capex• Maintain a strong lender base
• Appropriate LTV• Manage interest rate risk
• Prepare to acquire credit rating• Shift to no fixed fee, performance fee-only structure• Acquire credit rating• Diversify financing• Continue to control LTV and manage interest rate risk
• Prepare to enter global REIT indices

Other

Organic
GrowthExternal
GrowthContinuous Dividend Growth via External Growth, Organic Growth, and Strong Financial Base

• Conduct share buybacks to increase dividend and maintainappropriate share price• Conduct share buybacks to increase dividend and maintainappropriate share price• Promote responsiveness to disasters (Respond to ESG
requirements)© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

53

Ichigo Hotel’s Sponsor: Ichigo (2337)
Core Businesses: Asset Management, Sustainable Real Estate, Clean Energy‒‒‒‒

Manages Ichigo Office (8975), Ichigo Hotel (3463), and Ichigo Green (9282)
TSE First Section, JPX-Nikkei 400 Member
Deeply committed to CSR and Sustainability
Japan’s first zero-carbon listed real estate company

Ichigo(TSE First Section 2337)

Ichigo Hotel (3463)

Ichigo Preserves andImproves Real Estate

Hiromi Miyake(Weightlifting)

The word “Ichigo” comes from theancient Japanese proverb, Ichigo
Ichie, literally meaning “Onelifetime, one encounter.” Thephrase 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 for every
guest, because that particular
moment will only exist once andmust be fully lived and realized.

Ichigo embraces the Ichigo Ichie philosophy of sincerity
and service, and works to build strong long-term
relationships to support the success of our clients,
shareholders, and all stakeholders.

AssetManagement

Ichigo Investment Advisors

Ichigo Green (9282)
Ichigo Office (8975)

Sustainable
Real Estate

Clean Energy

Ichigo Estate

Miyako City

Ichigo Owners

CentroIchigo Land Shinchiku

Storage Plus

Ichigo Real Estate Services
Fukuoka

Ichigo Animation

Ichigo Marché

Hakata Hotels

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

54

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)







Sell

Value-Add(Increase Asset Value)

Role

Value-add capex
On-going renovation and equipment renewal
Increase hotel attractiveness & competitiveness
Grow earnings via collaboration with hotel
operators
Grow earnings via rebranding and improving
lease terms
Grow earnings via smart cost control



Hard





Soft

Buy




Rectify building code issues
Seismic and safety reinforcement
Large-scale structural and equipment renewal
Change hotel operator/brandImprove lease terms
Improve hotel operations

Third-Party Investors© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Sell

55

Hakata Hotels & PROPERA− Hakata Hotels, a consolidated subsidiary of Ichigo, is a hotel operator operating
12 hotels across Japan with many located in the Hakata (Fukuoka) area
− Hakata Hotels is deploying PROPERA, an AI-based revenue management systemdeveloped by Ichigo, to maximize earnings and increase guest satisfaction.
Name

Hakata Hotels Inc.

Address

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

Representatives

Minoru Ishihara, Representative Director & Chairman
Takanobu Kitazaki, Representative Director & President

Paid-In Capital

JPY 10 million (100% shareholding by Centro Co. Ltd., a 100% Ichigo subsidiary)

Establishment Date

March 2019

Main Business・Development, operation, lease, and management of retail buildings, hotels and restaurants
・Lease and management of real estate・Design and construction of buildings and interior designs
・Consulting services related to retail buildings, retail facilities, and restaurants

Operating Hotels(Number of rooms inparentheses)

Tokyo: HOTEL EMIT SHIBUYA (72), MusBee Tokyo Hamamatsucho (29)
Kyoto: The OneFive Kyoto Shijo (146)
Osaka: The OneFive Osaka Sakaisuji (130)
Okayama: The OneFive Okayama (208)Fukuoka: The OneFive Villa Fukuoka (50), Plaza Hotel Tenjin (205), Plaza Hotel Premiere (170),
Hotel Il Palazzo (62), The OneFive Marine Fukuoka (103), The OneFive Terrace Fukuoka (82),
The OneFive Fukuoka Tenjin (77)

PROPERA AI-based revenue management system developed by Ichigo• Increases guest satisfaction• Operating track record of increasing earnings by 10-40%• Starting third-party sales© Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

56

Portfolio Growth Opportunity via Ichigo Sponsor Support
20 Hotels (JPY 64B) in Ichigo Sponsor Pipeline as of May 31, 2021
− Lodging-focused hotels across Japan− Locations: Major cities such as Hokkaido, Tokyo, Yokohama, Osaka, and Fukuoka

Hokkaido

FukuokaTokyo

Hiroshima

Fukuoka

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

57

Ichigo Hotel Overview
Ichigo Hotel
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

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.

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 ).
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.

59