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.

December 15, 2021
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/en
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,
today decided to appoint a new hotel operator for the Court Hotel Kurashiki.
1. Operator Change Overview
As part of the operator change, the Court Hotel Kurashiki is expected to be rebranded
and renamed as The OneFive Garden Kurashiki.
After Change
Operator
Lease Contract

Rent

Before Change

Hakata Hotels Inc.
The COURT Co., Ltd.
(“Hakata Hotels”)(“The Court”)
Fixed Rent (minimum guaranteed Fixed Rent (minimum guaranteedrent) + Variable rentrent) + Variable rent
Minimum guaranteed rent:
Minimum guaranteed rent: 50%Forecast GOP – [ (2% of Forecast of Forecast GOPGOR) + (10% of Forecast GOP) ]x Rate*Variable rent:*Rate
Feb 2022 – Jan 2023: 10%
Feb 2023 – Jan 2024: 30%
Feb 2024 & onwards: 50%

Actual GOP – Minimum
guaranteed rent – (10% of ActualGOP)

Variable rent:
Actual GOP – Minimum
guaranteed rent – [ (2% of ActualGOR) + (10% of Actual GOP) ]Tenant Leasehold andNoneSecurity Deposits

None

GOP: Gross operating profit

GOR: Gross operating revenue
12. Reason for Change
IIA is changing the hotel operator because of the upcoming expiration of the current
lease contract with The Court. The new hotel operator will be Hakata Hotels, a
consolidated subsidiary of Ichigo, IIA’s parent company. Hakata Hotels currently
operates 12 hotels, including the HOTEL EMIT SHIBUYA, The OneFive Okayama,
The OneFive Fukuoka Tenjin, and The OneFive Osaka Sakaisuji which are owned byIchigo Hotel.
Hakata Hotels was chosen from among several candidate operators based on its
competitive price offering. Under the new contract, the Court Hotel Kurashiki’s fixed
rent will increase significantly, while the revision of the variable rent component will
increase the potential for upside earnings growth. Hakata Hotels will deploy
PROPERA, an AI-based revenue management system that Ichigo developed based onits expertise in increasing hotel revenue, to maximize earnings and increase guest
satisfaction.
3. New Hotel Operator ProfileName

Hakata Hotels Inc.

Address

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

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

CapitalJPY 100 million

Establishment Date

March 11, 2019

Principal Business

Relationship with Ichigo
Hotel or IIA

1. Development, operation, lease, and management ofretail buildings, 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, retailfacilities, and restaurants
・The hotel operator is an operator of the HOTEL EMITSHIBUYA, The OneFive Okayama, The OneFiveFukuoka Tenjin, and The OneFive Osaka Sakaisujiwhich are 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
defined in IIA’s internal rules, given that the hotel
operator is a consolidated subsidiary of Ichigo, IIA’sparent company.

4. Date of Operator Change
February 1, 2022 (expected)

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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.
6. Earnings Outlook
The impact of the operator change on Ichigo Hotel’s January 2022 and July 2022 fiscal
period earnings has already been reflected in the forecasts presented in the September
14, 2021 release “July 2021 Fiscal Period Earnings.”

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