Creating peace of mind through honest and committed management.

November 30, 2015
REIT Issuer
Ichigo Hotel REIT Investment Corporation (3463)
1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Osamu Miyashita, Executive Director
Asset Management Company
Ichigo Real Estate Investment Advisors Co., Ltd.
Representative: Wataru Orii, President & Representative Statutory Executive Officer
Inquiries: Hiroto Tajitsu, Head of Administration & Statutory Executive Officer
Tel: +81-3-3502-4892

Asset Acquisitions
Ichigo Hotel REIT has completed the acquisition of nine assets announced as AnticipatedAcquisitions in the prospectus issued in October 2015. Of these nine assets, the sellers of
Chisun Inn Osaka Hommachi, Hotel Suave Kobe Asuta, and Valie Hotel Tenjin are relatedparties as defined in the Investment Trust and Investment Corporation Law (1951 Law No. 198
and including afterward revisions, “Investment Law”). Therefore, Ichigo Hotel REIT’s consent
has been confirmed based on the approval made by the Ichigo Hotel REIT Board Meeting heldon October 2, 2015. While the sellers of the six other assets are not related parties as defined in
the Investment Law, the sellers are related parties according to the internal rules of Ichigo Real
Estate Investment Advisors (“IRE”) and therefore consent has been confirmed based on theapproval made by the Ichigo Hotel REIT Board Meeting held on October 2, 2015.
I. Acquisition Summary

Asset Name

Smile Hotel
Kyoto Shijo

Hotel Vista
Premio Kyoto

Asset No.

001

002

Hotel Type
Date Built
Form of OwnershipAppraisal Value1
Acquisition Price2
SellerContract Date
Closing Date
Financing Method
Settlement Method

Hotel Wing
International
Nagoya003

Nest Hotel
Sapporo Ekimae
004

Stay-Only
January 1991
June 2008
October 1984
June 1984
Trust beneficiary interest in real estate (juekiken)
4,500,000,000 yen
3,620,000,000 yen
2,710,000,000 yen
2,180,000,000 yen
4,480,000,000 yen
3,600,000,000 yen
2,670,000,000 yen
2,160,000,000 yen
Shijo Holdings
Kawaramachi
Sapporo Holdings
Sapporo HoldingsGK
Holdings GK
GK
GK
October 9, 2015
November 30, 2015
New share issuance and borrowing
Lump-sum payment

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT Investment Corporation, andhas not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT's prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

1Asset Name
Asset No.
Hotel Type
Date Built
Form of OwnershipAppraisal Value1
Acquisition Price2

Chisun Inn
Osaka Hommachi

Comfort Hotel
Hamamatsu

Hotel Suave
Kobe Asuta

Nest Hotel
Sapporo Odori

005

006

007

008

Contract Date
Closing Date
Financing Method
Settlement Method

Stay-Only
September 2009
January 2008
August 1992
Trust beneficiary interest in real estate (juekiken)
1,650,000,000 yen
1,610,000,000 yen
1,500,000,000 yen
1,460,000,000 yen
1,630,000,000 yen
1,550,000,000 yen
1,490,000,000 yen
1,450,000,000 yen
Sapporo Holdings
Hamamatsu
Ichigo Inc.
Ichigo EstateGK
Holdings GK
October 9, 2015
November 30, 2015
New share issuance and borrowing
Lump-sum payment

Asset Name

Valie Hotel Tenjin

Asset No.
Hotel Type
Date Built

009
Stay-Only
March 1994
Trust beneficiaryinterest in real estate(juekiken)
1,450,000,000 yen
1,380,000,000 yen
Ichigo Real Estate
Services Fukuoka
October 9, 2015
November 30, 2015

SellerForm of OwnershipAppraisal Value1
Acquisition Price2
SellerContract Date
Closing Date
Financing Method
Settlement Method
1
2

October 1982

New share issuance and borrowing
Lump-sum payment

Appraisal value is as of July 31, 2015.
Acquisition price is the price shown on the purchase and sale agreement for the asset(excluding fees and incidental expenses such as property, city planning, and consumption
taxes).

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

2II. Asset Details
Details of the acquired assets follow.

Notes to the Asset Details:
1) The names of the architect, builder, structural strength assessor, and inspection agency
are those of when the building was built.
2) Forecast NOI is the difference between the operating revenues and the operating
expenses of the asset for the initial year. NOI yield is calculated by dividing NOI by
Acquisition Price. Amounts less than a million are rounded off.
3) Depreciation Ratio is calculated by dividing the expected depreciation amount for the
initial year by Acquisition Price.
4) Structure of a building refers to the structure mentioned in the real estate register.
The following abbreviations are used with regards to structure: RC stands for reinforced
concrete; SRC for steel reinforced concrete; F for number of stories; and B for basement.

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

3(1) Smile Hotel Kyoto Shijo(i) Location and Features
This stay-only hotel is located in the center of Kyoto, a 5-minute walk from Shijo
Station on the Karasuma Subway Line and Karasuma Station on the Hankyu Railway
Kyoto Line.
The area is at the heart of the railroad and road systems of Kyoto, with good accessto both residential areas and sightseeing. The Shijo-Karasuma district, with manybanks and brokerage firms located around the Shijo-Karasuma intersection, is thefinancial center of Kyoto.
In tandem with JR Kyoto Station, this district is the main area of Kyoto, and bothbusiness and leisure (domestic and inbound) demand can be expected.
The hotel re-opened under its current name in June 2014. Prior to re-opening, allguest rooms and public areas were refurbished.
(ii) Property Photo and Map

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

4Asset Overview
Name of Property

Smile Hotel Kyoto Shijo

Legal Form of Asset

Trust beneficiary interest in real estate (juekiken)

Trustee

Shinsei Trust & Banking Co., Ltd.

Period of Trust Contract

November 30, 2015 – November 30, 2025

Location

59 Kasaboko-cho, Shijo-dori Aburanokoji Higashi-Iru, Shimogyo-ku, Kyoto

Land

Building

Property Right

FreeholdSize

662.83m2

ZoningCommercial

Coverage Ratio/Floor
Area Ratio

80%/700%

Property Right

Freehold

Use

Hotel

Structure

SRC/Steel B1F/10F

Total Floor Area

4,891.84 m2

Construction Date

January 31, 1991

Appraiser

The Tanizawa Sogo Appraisal Co., Ltd.

Appraisal Value

4,500,000,000 yen

Appraisal Date

July 31, 2015

Value by Direct Capitalization Method

4,570,000,000 yen

Number of Guest Rooms

138

Architect

Rui Sekkeishitsu KK

Builder

Muramoto Corporation

Structural Strength Assessor

Rui Sekkeishitsu KK

Inspection Agency

Kyoto City

PML (Assessor)

1.95% (Sompo Japan Nipponkoa Risk Management Inc.)

Collateral

Non-collateralized
Rent Overview (as of November 30, 2015)

Number of Tenants

1Monthly Rental Income

Minimum Guaranteed Rent: 64,975,890 yen p.a.
Variable Rent: GOP of the month – (Minimum Guaranteed Rent + 2% ofrevenue +10% of the GOP)

Deposit

None

Leasable Area

4,891.84 m2

Leased Area

4,891.84 m2

Occupancy

100%

Property Management Company

Building Management & Strategy Inc.

Master Lease Company

Ichigo Hotel REIT

Type of Master Lease

Pass-throughNOI Yield

5.7%

NOI Yield After Depreciation

5.0%
Special Items

None

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

5Appraisal Overview
Name

Smile Hotel Kyoto Shijo

Appraisal Value

4,500,000,000 yen

Appraiser

The Tanizawa Sogo Appraisal Co., Ltd.

Appraisal Date

July 31, 2015
AmountAppraisal Value
Value by Direct Capitalization
MethodIncomeMaximum Obtainable
Rental Income
Vacancy Loss
ExpensesNote

4,500,000,000 yen
4,570,000,000 yen
272,840,004 yen
272,840,004 yen
0 yen
18,394,010 yen

Administrative andMaintenance Expenses

0 yen

Utility Expenses

0 yen

Repair Expenses

4,600,000 yen

PM Fee1,200,000 yen

Leasing Brokerage
Fees
Taxes
Insurance Premiums
Other Expenses
Net Operating Income(NOI)
Income on Investmentof Deposits Received
Capital Expenditure

Based on engineering reports and similar assets

0 yen
9,566,200 yen
299,410 yen
2,728,400 yen

Based on FY2015 actual amounts
Based on insurance estimates
Based on past income and expenses records

254,445,994 yen
0 yen
17,020,000 yen

Net Profit

237,425,994 yen

Cap Rate

5.2%

Value via DCF Method

Valuation determined via both a direct capitalization
valuation and DCF valuation

Sum of capital expenditure based on engineering reports andsimilar assets, and FF&E reserves based on similar assets
Based on transactions of similar assets and comprehensive
assessment of the asset’s location, its individual
characteristics, property right, etc.

4,470,000,000 yen

Discount Rate

5.3%

Based on transactions of similar assets and the yields offinancial assets with the asset’s individual characteristics
taken into account

Terminal Cap Rate

5.4%

Based upon risk-adjusted NOI

Value via Cost Approach

4,430,000,000 yen

Land

80.1%

Building

19.9%
Notes

None

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

6(2) Hotel Vista Premio Kyoto(i) Location and Features
This stay-only hotel is a 5-minute walk from Kyoto City Hall Station on the Tozai
Subway Line, and a 7-minute walk from Kawaramachi Station on the Hankyu
Railway Kyoto Line.
Located in downtown Kyoto, this accessible hotel is a highly useful accommodation
for both business and sightseeing purposes.
Most of the guest rooms are spacious twin and double rooms, which meet growing
leisure demand.
The guest rooms are high-class compared to the standard business hotels in the area,with functional, Western-style rooms having a Kyoto-like traditional Japaneseinteriors.
(ii) Property Photos and Map

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

7

Asset Overview
Name of Property

Hotel Vista Premio Kyoto

Legal Form of Asset

Trust beneficiary interest in real estate (juekiken)

Trustee

Mitsubishi UFJ Trust & Banking Corp.

Period of Trust Contract

November 30, 2015 – November 30, 2025
457 Matsugae-cho, Kawaramachi-dori Rokkaku Nishi-iru, Nakagyou-ku,
Kyoto

LocationLand

Building

Property Right

FreeholdSize

1,004.91 m2 1

ZoningCoverage Ratio/Floor

Commercial

Property Right

Freehold

ZoningHotel

Structure

Steel/RC B1F/6F

Total Floor Area

3,867.66 m2

Construction Date

June 26, 2008

80%/700%

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal Value

3,620,000,000 yen

Appraisal Date

July 31, 2015

Value by Direct Capitalization Method

3,680,000,000 yen

Number of Guest Rooms

84

ArchitectNOM Architectual Design Office

Builder

Daiho Corporation

Structural Strength Assessor

NOM Architectual Design Office, Tsuchitani Architecutal Structure OfficeInspection Agency

Kyoto Organization of Confirmation and Inspection

PML (Assessor)

1.75% (Sompo Japan Nipponkoa Risk Management Inc.)

Collateral

Non-collateralized
Rent Overview (as of November 30, 2015)

Number of Tenants

3

Monthly Rental Income

Fixed Rent: 12,500,000 yen / monthly
Variable Rent: 35% of amount in excess in case GOP exceeds 165 million yen

Deposit

None

Leasable Area

3,867.66 m2

Leased Area

The hotel facilities and other public areas of the hotel within the building (total
floor area: 3,867.66m2)

Occupancy

100%

Property Management Company

ES-CON PROPERTY, Ltd.

Master Lease Company

Ichigo Hotel REIT

Type of Master Lease

Pass-throughNOI Yield

4.9%

NOI Yield After Depreciation

4.3%
Special Items

None
1 Includes driveway (approximately 11.2m2) pursuant to Article 42, Paragraph 1 of the Building Standards Act.

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

8

Appraisal Overview
Name

Hotel Vista Premio Kyoto

Appraisal Value

3,620,000,000 yen

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal Date

July 31, 2015
AmountAppraisal Value
Value by Direct Capitalization
MethodIncomeMaximum Obtainable
Rental Income
Vacancy Loss
Expenses
Administrative andMaintenance Expenses

Note

3,620,000,000 yen

Valuation determined via both a direct capitalization
valuation and DCF valuation

3,680,000,000 yen
199,498,668 yen
200,704,812 yen
1,206,144 yen

Hotel: based on income estimates and mid- to long- termcompetitiveness
Tenant: based on rent and common fee estimates
Tenant: based on mid- to long- term vacancy rate of similar
assets

22,350,176 yen
1,684,742 yen

Tenant space: monthly cost of 120 yen per tsubo estimate

Utility Expenses

0 yen

Repair Expenses

3,020,667 yen

Based on the average of the past 12 years of engineering
reports

PM Fee1,440,000 yen

Based on contract rate and similar assets

Leasing Brokerage
Fees
Taxes
Insurance Premiums
Other Expenses
Net Operating Income(NOI)
Income on Investmentof Deposits Received
Capital Expenditure

324,990 yen
13,665,000 yen
219,790 yen
1,994,987 yen

Based on FY2015 actual amounts
Based on insurance estimates
1% of Income calculated as variable expense

177,148,492 yen
771,519 yen
4,964,553 yen

Net Profit

172,955,458 yen

Cap Rate

4.7%

Value via DCF Method

Based on the standard turnover rate with competition, pastactual amounts, and similar assets into accountBased on 2.0% investment yield
Based on the average of the past 12 years of engineering
reports
Based on transactions of similar assets and comprehensive
assessment of the asset’s location, its individual
characteristics, property right, etc.

3,600,000,000 yen

Discount Rate

4.5%

Based on transactions of similar assets and the yields offinancial assets with the asset’s individual characteristics
taken into account

Terminal Cap Rate

4.9%

Based upon risk-adjusted NOI

Value via Cost Approach

3,100,000,000 yen

Land

76.4%

Building

23.6%

Sum of total price of building and total price of FF&E
divided by sum of total price of building, total price of FF&E,
and total price of land
Notes

None
Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

9(3) Hotel Wing International Nagoya(i) Location and Features
A stay-only hotel located in the heart of Nagoya, a 2-minute walk from Marunouchi
Station on the Nagoya City Subway Sakura-Dori and Tsurumai Lines. The hotel
re-branded to its current name in 2006.
The area is a business district, with the Nagoya Branch of Bank of Japan, othergovernment offices, branch offices of financial firms, and major companies locatednearby.
With easy access to the Sakae shopping and entertainment area and JR Nagoya Station,
the hotel can meet both business and leisure demand.
(ii) Property Photos and Map

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

10Asset Overview
Name of Property

Hotel Wing International Nagoya

Legal Form of Asset

Trust beneficiary interest in real estate (juekiken)

Trustee

Mitsubishi UFJ Trust & Banking Corp.

Period of Trust Contract

November 30, 2015 – November 30, 2025

Location

1-4-11 Nishiki, Naka-ku, Nagoya, Aichi Prefecture

Land

Building

Property Right

FreeholdSize

603.37 m2

ZoningCommercial

Coverage Ratio/Floor
Area Ratio

80%/800%

Property Right

Freehold

ZoningHotel

Structure

SRC/Steel B1/11F

Total Floor Area

5,255.66 m2

Construction Date

October 19, 1984

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal Value

2,710,000,000 yen

Appraisal Date

July 31, 2015

Value by Direct Capitalization Method

2,740,000,000 yen

Number of Guest Rooms

220

Architect

Uenoyama Urban Architects and Associates

Builder

Mitsui Construction

Structural Strength Assessor

Uenoyama Urban Architects and Associates

Inspection Agency

Nagoya City

PML (Assessor)

14.52% (Sompo Japan Nipponkoa Risk Management Inc.)

Collateral

Non-collateralized
Rent Overview (as of November 30, 2015)
1

Number of Tenants
Monthly Rental Income

The tenant has not consented to disclosure

Deposit

The tenant has not consented to disclosure

Leasable Area

5,255.66 m2

Leased Area

5,255.66 m2

Occupancy

100%

Property Management Company

Building Management & Strategy Inc

Master Lease Company

Ichigo Hotel REIT

Type of Master Lease

Pass-throughNOI Yield

5.9%

NOI Yield After Depreciation

5.4%
Special Items

None
Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

11

Appraisal Overview
Name

Hotel Wing International Nagoya

Appraisal Value

2,710,000,000 yen

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal Date

July 31, 2015
AmountAppraisal Value
Value by Direct Capitalization
MethodIncomeMaximum Obtainable
Rental Income
Vacancy Loss
Expenses

Note
Valuation determined via both a direct capitalization

2,710,000,000 yen

valuation and DCF valuation

2,740,000,000 yen
175,200,000 yen
Based on income estimates and mid- to long- termcompetitiveness

175,200,000 yen
0 yen
17,049,890 yen

Administrative andMaintenance Expenses

0 yen

Utility Expenses

0 yen

Repair Expenses

2,447,000 yen

Based on the average of the past 12 years of engineering
reports

PM Fee1,500,000 yen

125,000 yen per month

Leasing Brokerage
Fees
Taxes

0 yen
12,252,400 yen

Based on FY2015 actual amounts

Insurance Premiums

324,890 yen

Based on insurance estimates

Other Expenses

525,600 yen

0.3% of Income calculated as variable expense

Net Operating Income(NOI)
Income on Investmentof Deposits Received
Capital Expenditure

158,150,110 yen
1,200,000 yen

Based on 2.0% investment yield

14,158,083 yen

Based on the average of the past 12 years of engineering
reports

Net Profit

145,192,027 yen

Cap Rate

5.3%

Value via DCF Method

Based on transactions of similar assets and comprehensive
assessment of the asset’s location, its individual
characteristics, property right, etc.

2,700,000,000 yen

Discount Rate

5.1%

Based on transactions of similar assets and the yields offinancial assets with the asset’s individual characteristics
taken into account

Terminal Cap Rate

5.5%

Based upon risk-adjusted NOI

Value via Cost Approach

2,060,000,000 yen

Land

84.3%

Building

15.7%
Notes

None

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

12

(4)

Nest Hotel Sapporo Ekimae(i) Location and Features
Rebranded as Nest Hotel in May 2013, this is a stay-only hotel a 5-minute walk from
Sapporo Station on the Namboku Subway Line and 6-minute walk from Sapporo
Station on the JR Line.
The hotel is situated at the heart of Sapporo, attracting both tourists and businesstravelers. It is located close to key transport infrastructure with growing travel
demand. The hotel is also conveniently located near major tourism and dining areas
such as Odori Park and the Susukino area.
The hotel is famous for its breakfast buffet, with more than 40 varieties of dishes
ranging from local specialties to international favorites.
(ii) Property Photos and Map

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

13

Asset Overview
Name

Nest Hotel Sapporo Ekimae

Legal Form of Asset

Trust beneficiary interest in real estate (juekiken)

Trustee

Mitsubishi UFJ Trust and Banking Corporation

Period of Trust Contract

November 30, 2015 - November 30, 2025

Location

2-9-2 Kita Nijo Nishi, Chuo-ku,,Sapporo, Hokkaido

Land

Building

Property Right

Freehold

Size

897.96 m2

ZoningCoverage Ratio/ Floor
A R ti
Property Right

Commercial
80%/800%
Freehold

Use

Hotel

Structure

SRC B1F/11F

Total Floor Area

5,734.93 m2

Construction Date

June 30,1984

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal Value

2,180,000,000 yen

Appraisal Date

July 31, 2015

Value by Direct Capitalization Method

2,190,000,000 yen

Number of Guest Rooms

162

Architect

Nihon Sekkei, Inc.

Builder

Joint Venture of Fujita Kogyo and Ohki Corporation

Structural Strength Assessor

Nihon Sekkei, Inc.

Inspection Agency

Sapporo City

PML (Assessor)

0.44% (Sompo Japan Nipponkoa Risk Management Inc.)

Collateral

Non-collateralized
Rent Overview (as of November 30,, 2015)

Number of Tenants

1Monthly Rental Income

Minimum Guaranteed Rent: 63,521,729 yen p.a.
Variable Rent = GOP of the month - (Minimum Guaranteed Rent + a certain
percentage of revenues of the month + a certain percentage of the GOP of themonth)

Deposit

Lease deposit: 15,900 thousand yen, No guarantee deposit

Leasable Area

5,734.93 m2

Leased Area

5,734.93 m2

Occupancy

100%

Property Management Company

Nippon Kanzai Co., Ltd.

Master Lease Company

Ichigo Hotel REIT

Type of Master Lease

Pass-throughAssumed NOI (NOI yield)2

6.9%

Depreciation Ratio

5.9%
Special Items

None
Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

14

Appraisal Overview
Name

Nest Hotel Sapporo Ekimae

Appraisal Value

2,180,000,000 yen

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal Date

July 31, 2015
AmountAppraisal Value
Value by Direct Capitalization
MethodIncomeMaximum Obtainable
Rental Income
Vacancy Loss
Expenses

Note
Valuation determined via both a direct capitalization

2,180,000,000 yen

valuation and DCF valuation

2,190,000,000 yen
163,474,000 yen
Based on income estimates and mid- to long- termcompetitiveness

163,474,000 yen
0 yen
14,454,409 yen

Administrative andMaintenance Expenses

0 yen

Utility Expenses

0 yen

Repair Expenses

2,195,167 yen

Based on the average of the past 12 years of engineering
reports

PM Fee1,200,000 yen

100,000 yen per month

Leasing Brokerage
Fees
Taxes

0 yen
10,252,900 yen

Based on FY2015 actual amounts

Insurance Premiums

315,920 yen

Based on insurance estimates

Other Expenses

490,422 yen

0.3% of Income calculated as variable expense

Net Operating Income(NOI)
Income on Investmentof Deposits Received
Capital Expenditure

149,019,591 yen
318,000 yen

Based on the average of the past 12 years of engineering
reports and FF&E reserves.

22,334,173 yen

Net Profit

127,003,418 yen

Cap Rate

5.8%

Value via DCF Method

Based on 2.0% investment yield

Based on transactions of similar assets and comprehensive
assessment of the asset’s location, its individual
characteristics, property right, etc.

2,180,000,000 yen

Discount Rate

5.6%

Based on transactions of similar assets and the yields offinancial assets with the asset’s individual characteristics
taken into account

Terminal Cap Rate

6.0%

Based upon risk-adjusted NOI

Value via Cost Approach

939,000,000 yen

Land

66.3%

Building

33.7%
Notes

None
Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

15

(4) Chisun Inn Osaka Hommachi(i) Location and Features
The hotel is a stay-only hotel a 5-minute walk from Sakaisuji Hommachi Station on
the Chuo Subway Line. The area is a highly dense commercial district with thepotential for higher numbers of tourist and business travelers.
Access to major tourist spots such as Universal Studio Japan and Kyocera Dome isconvenient via public transport.
(ii) Property Photos and Map

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

16

Asset Overview
Name

Chisun Inn Osaka Hommachi

Legal Form of Asset

Trust beneficiary interest in real estate (juekiken)

TrusteeMizuho Trust& Banking Co., Ltd.

Period of Trust Contract

November 30, 2015 - November 30, 2025

Location

2-3-8 Bakuromachi, Chuo-ku, OsakaLand

Building

Property Right

FreeholdSize

596.21 m2 1

ZoningCommercial

Coverage Ratio/ Floor
Area Ratio

80%/600% 2

Property Right

Freehold

Use

Hotel

Structure

SRC B1F/10F

Total Floor Area

3,568.32 m2

Construction Date

October 26,1986

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal Value

1,650,000,000 yen

Appraisal Date

July 31, 2015

Value by Direct Capitalization Method

1,670,000,000 yen

Number of Guest Rooms

130

Architect

Nire Architectural Planning

Builder

Nihon Sekkei, Inc.

Structural Strength Assessor

Nire Architectural Planning

Inspection Agency

Osaka City

PML (Assessor)

7.77% (Sompo Japan Nipponkoa Risk Management Inc.)

Collateral

Non-collateralized
Rent Overview (as of November 30, 2015)

Number of Tenants

2

Monthly Rental Income

Minimum Guaranteed Rent: 6,000,000 yen p.a.
Variable Rent 1): 35% of the amount exceeding 228,572,000 yen when the total
amount of hotel room revenue p.a. is more than 228,572,000 yen and less than
286,000,000 yen.
Variable Rent 2): 15% of the amount exceeding 286,000,000 yen in addition to1) when the total amount of hotel room revenue p.a. is more than 286,000,000
yen.

Deposit

Lease deposit: 18,000 thousand yen, No guarantee deposit

Leasable Area

3,690.00 m2

Leased Area

3,690.00 m2

Occupancy

100%

Property Management Company

Building Management & Strategy Inc.

Master Lease Company

Ichigo Hotel REIT

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

17

Type of Master Lease

Pass-throughAssumed NOI (NOI yield)2

5.4%

Depreciation Ratio

4.9%
Special Items

The lease contract between the seller and the tenant specifies that preferential negotiation right is granted to the tenant in
the case the asset is sold (including transfer of ownership in the form of gift, transition to trust beneficiary interest) during
the lease contract term. Ichigo Hotel REIT will acquire the trust beneficiary interest after the seller entrusts the asset, andthe lease contract between the seller and the tenant will be preserved and transferred to the trustee.
1 Includes position-specified road (31.2m2) pursuant to Article 42- 1 (5) of the Building Standard Act.
2 Building-to-land ratio is deregulated as 100% as the building is a fire-resistant building in a fire zone.

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

18

Appraisal Overview
Name

Chisun Inn Osaka Hommachi

Appraisal Value

1,650,000,000 yen

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal Date

July 31, 2015

Appraisal Value
Value by Direct Capitalization
MethodIncomeMaximum Obtainable
IncomeVacancy Loss
Expenses
Administrative andMaintenanceExpenses

AmountNote

1,650,000,000 yen

Valuation determined via both a direct capitalization valuation
and DCF valuation

1,670,000,000 yen
97,800,000 yen
97,800,000 yen

Based on rental income, common area service income, parking
lot income, and other income

0 yen
10,062,017 yen
540,000 yen

Based on current contract

Utility Expenses

0 yen

Repair Expenses

1,373,667 yen

Based on engineering reports and similar assets

PM Fees

1,173,600 yen

Based on similar assets and past actual amounts

Leasing Brokerage
Fees
Taxes

0 yen
6,275,400 yen

Based on FY2015 actual amounts

Insurance Premiums

210,350 yen

Based on insurance estimates

Other Expenses

489,000 yen

0.5% of Income as variable expense

Net Operating Income(NOI)
Income on Investmentof Deposits Received
Capital Expenditure

87,737,983 yen
420,000 yen
8,093,250 yen

Net Profit

80,064,733 yen

Cap Rate

4.8%

Value via DCF Method

Based on 2.0% investment yield
Based on average renewal expense in engineering reports
Based on transactions of similar assets and comprehensive
assessment of the asset’s location, its individual characteristics,
market trends, etc.

1,640,000,000 yen

Discount Rate

4.6%

Based on transactions of similar assets and the yields offinancial assets with the asset’s individual characteristics taken
into account

Terminal Cap Rate

5.0%

Based upon risk-adjusted NOI

Value via Cost Approach

1,130,000,000 yen

Land

85.2%

Property

14.8%
Notes

None

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

19(6) Comfort Hotel Hamamatsu(i)Location and Features
The hotel is a stay-only hotel with 35 single-bed rooms and 142 double-bed rooms,
conveniently located just a 2-minute walk from Hamamatsu Station on the JR Line. It
is also situated on the main trunk road that runs in front of the South Exit of the JR
Hamamatsu Station.
Many major national manufacturers in industries such as autos, motorcycles, andmusical instruments are in the area. Parts manufacturers and small and medium
enterprises (SMEs) also have offices in the area, and thus steady business demandcan be expected.

(ii)

Property Photos and Map

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

20

Name

Asset Overview
Comfort Hotel Hamamatsu

Legal Form of Asset

Trust beneficiary interest in real estate (juekiken)

TrusteeAozora Trust Bank, Ltd.

Period of Trust Contract

November 30, 2015 - November 30, 2025

Location

353-5 Sunayamacho, Naka-ku, Hamamatsu City, Shizuoka Prefecture

Land

Building

Property Right

FreeholdSize

835.12 m2

ZoningCommercial

Coverage Ratio/ Floor
Area Ratio

80%/500%

Property Right

Freehold

Use

Hotel

Structure

Steel 10F

Total Floor Area

4,173.92 m2

Construction Date

September 10, 2009

Appraiser

The Tanizawa Sogo Appraisal Co., Ltd.

Appraisal Value

1,610,000,000 yen

Appraisal Date

July 31, 2015

Value by Direct Capitalization Method

1,600,000,000 yen

Number of Guest Rooms

196

ArchitectNakano Fudo Corporation Tokyo Office

BuilderNakano Fudo Corporation Nagoya Office

Structural Strength Assessor

Nakano Fudo Corporation Tokyo OfficeInspection Agency

Bureau Veritas Japan

PML (Assessor)

13.62% (Sompo Japan Nipponkoa Risk Management Inc.)

Collateral

Non-collateralized
Rent Overview (as of November 30, 2015)

Number of Tenants

1Monthly Rental Income

Fixed Rent: 9,226,981 yen p.a.
Variable Rent: None

Deposit
Leasable Area

Lease deposit: 55,361,886 yen, No guarantee deposit

Leased Area

4,173.92 m2

Occupancy

100%

Property Management Company

Building Management & Strategy Inc.

4,173.92 m2

Master Lease Company

Ichigo Hotel REIT

Type of Master Lease-

Assumed NOI (NOI yield)2

6.3%

Depreciation Ratio

4.6%
Special Items

None

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

21

Appraisal Overview
Name

Comfort Hotel Hamamatsu

Appraisal Value

1,610,000,000 yen

Appraiser

The Tanizawa Sogo Appraisal Co., Ltd.

Appraisal Date

July 31, 2015

Appraisal Value
Value by Direct Capitalization
MethodIncomeMaximum Obtainable
IncomeVacancy Loss
Expenses

AmountNote

1,610,000,000 yen

Valuation determined via both a direct capitalization valuation
and DCF valuation

1,600,000,000 yen
110,723,772 yen
110,723,772 yen
0 yen
12,519,324 yen

Administrative andMaintenanceExpenses

0 yen

Utility Expenses

0 yen

Repair Expenses

1,760,000 yen

Based on engineering reports and similar assets

PM Fees

1,800,000 yen

Based on current contract

Leasing Brokerage
Fees
Taxes

0 yen
8,636,200 yen

Based on FY2015 actual amounts

Insurance Premiums

212,400 yen

Based on insurance estimates

Other Expenses

110,724 yen

0.1% of Income

Net Operating Income(NOI)
Income on Investmentof Deposits Received
Capital Expenditure

98,204,448 yen
1,107,238 yen

Based on 2.0% investment yield

4,664,000 yen

Based on engineering reports and similar assets

Net Profit

94,647,686 yen

Cap Rate

5 .9%

Value via DCF Method

Based on transactions of similar assets and comprehensive
assessment of the asset’s location, its individual characteristics,
market trends, etc.

1,610,000,000 yen

Discount Rate

5.9%

Based on transactions of similar assets and the yields offinancial assets with the asset’s individual characteristics taken
into account

Terminal Cap Rate

6.1%

Based upon risk-adjusted NOI

Value via Cost Approach

1,550,000,000 yen

Land

38.3%

Property

61.7%
Notes

None

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

22

(7) Hotel Suave Kobe Asuta(i) Location and Features
Built in January 2008, this is a stay-only hotel with 77 single bedrooms. It is a
2-minute walk from Shin-Nagata Station on the JR Sanyo Honsen Line.
Surrounding the hotel in the Shin-Nagata area is a number of new buildings as aresult of redevelopment projects after the Great Hanshin Earthquake in 1995.
(ii) Property Photos and Map

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

23

Name

Asset Overview
Hotel Suave Kobe Asuta

Legal Form of Asset

Trust beneficiary interest in real estate (juekiken)

TrusteeMizuho Trust & Banking, Co. Ltd.

Period of Trust Contract

November 30, 2015 - November 30, 20255-1-1 Wakamatsu-cho, Nagata-ku, Kobe, Hyogo Prefecture

LocationLand

Building

Property Right

FreeholdSize

838.88 m2

ZoningCommercial

Coverage Ratio/ Floor
Area Ratio

80%/500%, 80%/400%

Property Right

Freehold

Use

Hotel

Structure

RC B1F/9F

Total Floor Area

4,540.90 m2

Construction Date

January 15,2008

Appraiser

The Tanizawa Sogo Appraisal Co., Ltd.

Appraisal Value

1,500,000,000 yen

Appraisal Date

July 31, 2015

Value by Direct Capitalization Method

1,530,000,000 yen

Number of Guest Rooms

133

Architect

Kanto Sekkei Co. Ltd., Taisei Corporation

BuilderTaisei Corporation Kansai Branch

Structural Strength Assessor

Kanto Sekkei Co. Ltd., Taisei Corporation

Inspection Agency

The Building Center of Japan

PML (Assessor)

2.58% (Sompo Japan Nipponkoa Risk Management Inc.)

Collateral

Non-collateralized
Rent Overview (as of November 30,, 2015)

Number of Tenants

1Monthly Rental Income

The tenant has not consented to disclosure

Deposit

The tenant has not consented to disclosure

Leasable Area

4,633.16 m2

Leased Area

4,633.16 m2

Occupancy

100%

Property Management Company

Building Management & Strategy Inc

Master Lease Company

None

Type of Master Lease-

Assumed NOI (NOI yield)2

6.0%

Depreciation Ratio

4.4%
Special Items

None
Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

24

Name

Appraisal Overview
Hotel Suave Kobe Asuta

Appraisal Value

1,500,000,000 yen

Appraiser

The Tanizawa Sogo Appraisal Co., Ltd

Appraisal Date

July 31, 2015
AmountAppraisal Value
Value by Direct Capitalization
MethodIncomeMaximum Obtainable
Rental Income
Vacancy Loss
Expenses

Note
Valuation determined via both a direct capitalization
valuation and DCF valuation

1,500,000,000 yen
1,530,000,000 yen
108,000,000 yen
108,000,000 yen
0 yen
18,576,330 yen

Administrative andMaintenance Expenses

0 yen

Utility Expenses

0 yen

Repair Expenses

2,820,000 yen

Based on engineering reports, and expenses of similar assets

PM Fee2,400,000 yen

Based on current agreement

Leasing Brokerage
Fees
Taxes

0 yen
12,562,000 yen

Based on FY2015 actual amounts

Insurance Premiums

254,330 yen

Based on insurance estimates

Other Expenses

540,000 yen

0.5% of Income calculated as variable expense

Net Operating Income(NOI)
Income on Investmentof Deposits Received
Capital Expenditure

89,423,670 yen
960,000 yen

Based on 2.0% investment yield
Based on engineering reports, and expenditures of similar
assets6,110,000 yen

Net Profit

84,273,670 yen

Cap Rate

5.5%

Value via DCF Method

1,490,000,000 yen

Discount Rate

5.4%(years 1-3)
5.6%
(after 4th year)

Terminal Cap Rate

5.7%

Value via Cost Approach

1,450,000,000 yen

Land

36.0%

Building

64.0%

Based on transactions of similar assets and comprehensive
assessment of the asset’s location, its individual
characteristics, property right, etc.
Based on transactions of similar assets and the yields offinancial assets with the asset’s individual characteristics
taken into accountBased upon risk-adjusted NOI

Notes
None

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

25

(8) Nest Hotel Sapporo Odori(i)

Location and Features
This is a stay-only hotel conveniently located in the center of Sapporo a 4-minute
walk from Odori Station on the Namboku Subway Line. The area attracts many
visitors, generating significant demand as a place to stay for business and pleasure.
The hotel was rebranded as Nest Hotel Sapporo Odori in December 2013. The hotel
expects to attract more guests due to the Sapporo’s growing tourism demand and its
relatively spacious rooms of over 20m2.

(ii)

Property Photos and Map

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

26

Asset Overview
Name

Nest Hotel Sapporo Odori

Legal Form of Asset

Trust beneficiary interest in real estate (juekiken)

Trustee

Sumitomo Mitsui Trust Bank, Ltd.

Period of Trust Contract

November 30, 2015 - November 30, 2025
5-29-1 Minami Nijo Nishi, Chuo-ku, Sapporo, Hokkaido Prefecture

LocationLand

Building

Property Right

FreeholdSize

811.69 m2

ZoningCoverage Ratio/ Floori
Property Right

Commercial

Use

Hotel

Structure

SRC, Steel, B1F/15F

Total Floor Area

5,634.88 m2

Construction Date

August 26,1992

80%/800%
Freehold

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal Value

1,460,000,000 yen

Appraisal Date

July 31, 2015

Value by Direct Capitalization Method

1,450,000,000 yen

Number of Guest Rooms

117

Architect

Research Institute of Architecture

Builder

Fuji Construction Co., ltd.

Structural Strength Assessor

Takumi Orimoto Strucural Engineers & Associates

Inspection Agency

Sapporo City

PML (Assessor)

0.03% (Sompo Japan Nipponkoa Risk Management Inc.)

Collateral

Non-collateralized
Rent Overview (as of November 30,, 2015)

Number of Tenants

1Monthly Rental Income

Minimum Guaranteed Rent: 47,152,040 yen p.a.
Variable Rent: GOP of the month – (Minimum Guaranteed Rent + fixed
percentage of the revenue +fixed percentage of the GOP)

Deposit

Lease deposit: 11,850 thousand yen, No guarantee deposit

Leasable Area

5,638.78 m2

Leased Area

5,638.78 m2

Occupancy

100%

Property Management Company

Nippon Kanzai Co., Ltd.

Master Lease Company

Ichigo Hotel REIT

Type of Master Lease

Pass-throughAssumed NOI (NOI yield)2

6.9%

Depreciation Ratio

5.1%

Special Items
The elevator’s hoisting gear, sheave, or the winding drum requires corrective measures according to the regular inspection
report. An agreement exists between the seller to rectify the issue at the seller’s expense.

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

27

Appraisal Overview
Name

Nest Hotel Sapporo Odori

Appraisal Value

1,460,000,000 yen

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal Date

July 31, 2015

Appraisal Value
Value by Direct Capitalization
MethodIncomeMaximum Obtainable
IncomeVacancy Loss
Expenses

AmountNote

1,460,000,000 yen

Valuation determined via both a direct capitalization valuation
and DCF valuation

1,450,000,000 yen
121,895,000 yen
121,895,000 yen

Based on rental income, common area service income, parking
lot income, and other income

0 yen
21,910,865 yen

Administrative andMaintenanceExpenses

0 yen

Utility Expenses

0 yen

Repair Expenses

3,418,500 yen

Based on the average of the past 12 years of engineering reports

PM Fees

1,200,000 yen

100,000 yen per month

Leasing Brokerage
Fees
Taxes

0 yen
16,594,200 yen

Based on FY2015 actual amounts

Insurance Premiums

332,480 yen

Based on insurance estimates

Other Expenses

365,685 yen

0.3% of Income as variable

Net Operating Income(NOI)
Income on Investmentof Deposits Received
Capital Expenditure

99,984,135 yen
237,000 yen
17,608,604 yen

Net Profit

82,612,531 yen

Cap Rate

5.7%

Value via DCF Method

Based on 2.0% investment yield
Based on the average of the past 12 years of engineering reports
Based on transactions of similar assets and comprehensive
assessment of the asset’s location, its individual characteristics,
market trends, etc.

1,470,000,000 yen

Discount Rate

5.5%

Based on transactions of similar assets and the yields offinancial assets with the asset’s individual characteristics taken
into account

Terminal Cap Rate

5.9%

Based upon risk-adjusted NOI

Value via Cost Approach

1,130,000,000 yen

Land

51.4%

Property

48.6%

Sum of total price of building and total price of FF&E divided
by sum of total price of building, total price of FF&E, and total
price of land
Notes

None
Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

28

(9) Valie Hotel Tenjin(i) Location and Features
This is a stay-only hotel with 77 rooms of 35 rooms of 15m2 with double-sized beds
and 35 rooms of 15m2 with twin-sized beds, and seven 17m2 twin rooms. All rooms
were renovated in 2015.
The hotel is in Tenjin, Fukuoka’s most vibrant business, shopping, and entertainment
district. The hotel is a 6-minute walk from Tenjin Station on the Kuko Subway Line andjust a 2-minute walk from Tenjin Station’s nearest exit. Conveniently located andattracting many visitors as a place for shopping, Tenjin is the most popular travel
destination and hotel area in Fukuoka.
Situated adjacent to Meiji Dori and Showa Dori, major boulevards occupied bylarge-scale retailers and high-rise office buildings, the hotel attracts business travelers
on weekdays and tourists on the weekends.
(ii) Property Photos and Map

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

29

Asset Overview
Name

Valie Hotel Tenjin

Legal Form of Asset

Trust beneficiary interest in real estate (juekiken)

TrusteeMizuho Trust & Banking, Co. Ltd.

Period of Trust Contract

November 30, 2015 - November 30, 2025

Location

2-8-12 Daimyo, Chuo-ku, Fukuoka

Land

Building

Property Right

FreeholdSize

788.62 m2 1

ZoningCommercial

Coverage Ratio/ Floor
Area Ratio

80%/500%

Property Right

Freehold

Use

Hotel

Structure

RC/8F

Total Floor Area

1,910.94 m2

Construction Date

March 31, 1994

Appraiser

Japan Real Estate Institute

Appraisal Value

1,450,000,000 yen

Appraisal Date

July 31, 2015

Value by Direct Capitalization Method

1,470,000,000 yen

Number of Guest Rooms

77

Architect

Tokai Kogyo Corporation Kyushu Branch

Builder

Tokai Kogyo Corporation Kyushu Branch

Structural Strength Assessor

Tokai Kogyo Corporation Kyushu Branch

Inspection Agency

Fukuoka City

PML (Assessor)

0.81% (Sompo Japan Nipponkoa Risk Management Inc.)

Collateral

Non-collateralized
Rent Overview (as of November 30, 2015)

Number of Tenants
Monthly Rental Income

1
Minimum Guaranteed Rent: 46,416,444 yen p. a
Variable Rent = GOP of the month - (Minimum Guaranteed Rent + a certain
percentage of revenues of the month + a certain percentage of the GOP of themonth)

Deposit

None

Leasable Area

1,910.94 m2

Leased Area

1,910.94 m2

Occupancy

100%

Property Management Company

Building Management & Strategy Inc.

Master Lease Company

Ichigo Hotel REIT

Type of Master Lease

Pass-throughAssumed NOI (NOI yield)2

6.0%

Depreciation Ratio

5.1%

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

30

Special Items
A passage easement exists establishing the neighboring property and nearby property as the dominant land.
1 Includes setback (0.3m2)

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

31

Appraisal Overview
Name

Valie Hotel Tenjin

Appraisal Value

1,450,000,000 yen

Appraiser

Japan Real Estate Institute

Appraisal Date

July 31, 2015
AmountAppraisal Value
Value by Direct Capitalization
MethodIncomeMaximum Obtainable
Rental Income
Vacancy Loss
Expenses

1,450,000,000 yen
1,470,000,000 yen
91,379,000 yen

0 yen
8,324,000 yen
0 yen

Utility Expenses

0 yen

Repair Expenses

0 yen

Leasing Brokerage
Fees
Taxes

Based on the expected rental income, past business balances,situation of the hotel market, and the competitiveness of theasset itself taken into account91,379,000 yen

Administrative andMaintenance Expenses

PM FeeNote
Valuation determined via both a direct capitalization
valuation and DCF valuation

1,200,000 yen

Based on similar assets

0 yen
6,385,000 yen

Based on FY2015 actual amounts

Insurance Premiums

168,000 yen

Based on the estimate and standard of similar assets

Other Expenses

571,000 yen

Enterprise Taxes

Net Operating Income(NOI)
Income on Investmentof Deposits Received
Capital Expenditure

83,055,000 yen
0 yen

Net Profit

75,066,000 yen

Cap Rate

5.1%

Value via DCF Method

Based on the average of the past 12 years of engineering
reports

7,989,000 yen

Based on transactions of similar assets and comprehensive
assessment of the asset’s location, its individual
characteristics, property right, etc.

1,430,000,000 yen

Discount Rate

4.9%

Terminal Cap Rate

5.3%

Value via Cost Approach

1,010,000,000 yen

Land

76.4%

Building

23.6%

Based on transactions of similar assets and the yields offinancial assets with the asset’s individual characteristics
taken into accountBased on cap rates of similar assets, with expected trends ofcap rates, risks of the asset itself as a real estate investment,
economic trends, property prices, and rents taken into accountSum of total price of building and total price of FF&E
divided by sum of total price of building, total price of FF&E,
and total price of land
Notes

None
Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

32

III.

Seller Profiles
Name
Address
Representative

Principal Businesses

CapitalEstablishment Date
Equity Holder

Relationship with the Ichigo
Hotel REIT or AssetManager

Name
Address
Representative

Principal Businesses

CapitalEstablishment Date
Equity Holder

Relationship with the Ichigo
Hotel REIT or AssetManager

Shijo Holdings GK1
1-1-1 Uchisaiwaicho, Chiyoda-ku, TokyoManaging Member: Ippan Shadan Hojin Star Holding
Manager: Ryoichi Mogi
1. The acquisition, holding, and sale of trust beneficiaryinterest (juekiken)
2. The acquisition, holding, and sale of real estate
3. Other businesses relating to the aforementioned
businesses
100,000 yen
October 21, 2013
Ippan Shadan Hojin Star Holding
The Seller does not have any capital, personnel, or
business relationship and is not a related party as definedin the Enforcement Ordinance of the Investment Trust andInvestment Corporation Law. However, Ichigo, the 100%
shareholder of IRE is a related party according to theinternal rules of IRE, because it holds more than half of theequity in Shijo Holdings GK. Also, Ichigo Estate Solutions(IES), a related party as defined in the Enforcement
Ordinance of the Investment Trust and Investment
Corporation Law, is providing asset management advisory
services.
Kawaramachi Holdings GK1
1-1-1 Uchisaiwaicho, Chiyoda-ku, TokyoManaging Member: Ippan Shadan Hojin High Stage
Manager: Mariko Hirano
1. The acquisition, holding, and sale of trust beneficiaryinterest (juekiken)
2. The acquisition, holding, and sale of real estate
3. Other businesses relating to the aforementioned
businesses
100,000 yen
September 9, 2014
Ippan Shadan Hojin High StageThe Seller does not have any capital, personnel, or
business relationship and is not a related party as definedin the Enforcement Ordinance of the Investment Trust andInvestment Corporation Law. However, Ichigo, the 100%
shareholder of IRE is a related party according to theinternal rules of IRE, because it holds more than half of theequity in Kawaramachi Holdings GK. Also, IES, a related
party as defined in the Enforcement Ordinance of theInvestment Trust and Investment Corporation Law, isproviding asset management advisory services.

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

33

Name
Address
Representative

Principal Businesses

CapitalEstablishment Date
Equity Holder

Relationship with the Ichigo
Hotel REIT or AssetManager

Name
Address
Representative

Principal Businesses

CapitalEstablishment Date
Equity Holder

Relationship with the Ichigo
Hotel REIT or AssetManager

Sapporo Holdings GK1
1-1-1 Uchisaiwaicho, Chiyoda-ku, TokyoManaging Member: Ippan Shadan Hojin Star Holding
Manager: Hiroshi Sasaki
1. The acquisition, holding, and sale of trust beneficiaryinterest (juekiken)
2. The acquisition, holding, and sale of real estate
3. Other businesses relating to the aforementioned
businesses
100,000 yen
March 29, 2010
Ippan Shadan Hojin Star Holding
The Seller does not have any capital, personnel, or
business relationship and is not a related party as definedin the Enforcement Ordinance of the Investment Trust andInvestment Corporation Law. However, Ichigo, the 100%
shareholder of IRE is a related party according to theinternal rules of IRE, because it holds more than half of theequity in Sapporo Holdings GK. Also, IES, a related party
as defined in the Enforcement Ordinance of the Investment
Trust and Investment Corporation Law, is providing asset
management advisory services.
Hamamatsu Holdings GK1
1-1-1 Uchisaiwaicho, Chiyoda-ku, TokyoManaging Member: Ippan Shadan Hojin Star Holding
Manager: Hiroshi Sasaki
1. The acquisition, holding, and sale of trust beneficiaryinterest (juekiken)
2. The acquisition, holding, and sale of real estate
3. Other businesses relating to the aforementioned
businesses
100,000 yen
March 23, 2010
Ippan Shadan Hojin Star Holding
The Seller does not have any capital, personnel, or
business relationship and is not a related party as definedin the Enforcement Ordinance of the Investment Trust andInvestment Corporation Law. However, Ichigo, the 100%
shareholder of IRE is a related party according to theinternal rules of IRE, because it holds more than half of theequity in Hamatatsu Holdings GK. Also, IES, a related
party as defined in the Enforcement Ordinance of theInvestment Trust and Investment Corporation Law, isproviding asset management advisory services.

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

34

Name
Ichigo Estate Co., Ltd.
Address
1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative
Masahiko Koketsu, President & Representative Director
Principal Businesses
Small-sized real estate and ground leases
Capital
500 million yen (as of February 28, 2015)
Establishment Date
November 10, 2005
Net Assets
1,791 million yen (as of February 28, 2015)
Total Assets
28,248 million yen (as of February 28, 2015)
Equity Holder
Ichigo Inc. (100%)
Relationship with the Ichigo Hotel REIT or Asset Manager
The Seller is a subsidiary of the parent company of the asset
Capitalmanagement company is a related party as defined in the
Relationship
Enforcement Ordinance of the Investment Trust and Investment
Corporation Law.
Personnel
None
RelationshipA memorandum of understanding exists between the Seller, theBusiness
asset manager, and Ichigo regarding the prioritization order ofRelationshipnegotiation rights.
The Seller, Ichigo Hotel REIT, and the Asset Manager are related
Constitution as aparties. Also, the Seller is a related party as defined in the
Related Party
Enforcement Ordinance of the Investment Trust and Investment
Corporation Law.2
Name
Ichigo Inc.
Address
1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative
Takuma Hasegawa, President & Statutory Executive Officer
Principal Businesses
Group Management
Capital26,499 million yen (as of February 28, 2015)
Establishment Date
March 17, 2000
Net Assets
53,115 million yen (as of February 28, 2015)
Total Assets
82,204 million yen (as of February 28, 2015)
Equity Holder
Ichigo Trust PTE Ltd. (64.41% as of August 31, 2015)
Relationship with the Ichigo Hotel REIT or Asset Manager
Ichigo owns 4.9% of Ichigo Hotel REIT’s shares. Also, the Seller
Capitalis the parent company of the Asset Manager and is therefore a
Relationshiprelated party as defined in the Enforcement Ordinance of theInvestment Trust and Investment Corporation Law.
The Seller is the original company of which all the executives andPersonnel
employees excluding the corporate directors of the Asset
RelationshipManager. In addition, 8 corporate directors of Ichigo areconcurrently serving as corporate directors of the Asset Manager.
A Sponsor Support Agreement exists between the Seller andIchigo Hotel REIT. A memorandum of understanding exists
between the Seller, the asset manager, and IES regarding theBusinessprioritization order of negotiation rights. An agreement regarding
Relationshipbusiness management exists between the Seller and the AssetManager.
The Seller, Ichigo Hotel REIT, and the Asset Manager are related
Constitution as aparties. Also, the Seller is a related party of the Asset Manager as
Related Party
defined in the Enforcement Ordinance of the Investment Trustand Investment Corporation Law.2
Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

35

Name
Address
Representative

Ichigo Real Estate Services Fukuoka Co., Ltd.
2-5-19 Hakataeki-Higashi, Hakata-ku, Fukuoka
Shoyo Ishimatsu, President & Representative Director
Lease management, sales and acquisition of real estate in the
Principal Businesses
Kyushu region
Capital50 million yen (as of February 28, 2015)
Establishment Date
April 8, 2014
Net Assets
127 million yen (as of February 28, 2015)
Total Assets
7,411 million yen (as of February 28, 2015)
Equity Holder
Ichigo Inc. (100%)
Relationship with Ichigo Hotel REIT or Asset Manager
The Seller is a subsidiary of the parent company and is a related
Capital Relationshipcompany as defined in the Enforcement Ordinance of theInvestment Trust and Investment Corporation Law.
Personnel
The corporate director of the Seller is concurrently serving as theRelationshipcorporate director of the Asset Manager.
Business
The Seller does not have any business relationship of note withRelationship
Ichigo Hotel REIT or the Asset Manager.
The Seller, Ichigo Hotel REIT, and the Asset Manager are relatedparties. Also, the Seller is a related party of the Asset Manager asConstitution as adefined in the Enforcement Ordinance of the Investment Trust
Related Partyand Investment Corporation Law.2
1 Shijo Holdings GK, Kawaramachi Holdings GK, Sapporo Holdings GK, andHamamatsu Holdings GK (GKs) are not related parties as defined in the Enforcement
Ordinance of the Investment Trust and Investment Corporation Law. Nonetheless, theacquisition process has followed the internal rules of IRE for the following reasons.
First, Ichigo Inc., the 100 % shareholder of Ichigo Real Estate Investment Advisors Co.,
Ltd. (Ichigo Hotel REIT’s asset manager), is a related party according to the internal
rules of Ichigo Hotel REIT since it holds more than half of the equity in the GKs.
Second, Ichigo Estate Co., Ltd., a related party as defined in the Enforcement
Ordinance of the Investment Trust and Investment Corporation Law, is providing asset
management advisory services. Further, Ichigo Hotel REIT has obtained a second
opinion regarding the property’s appraisal and confirmed its propriety.
2 Ichigo Estate Co., Ltd., Ichigo Inc., and Ichigo Real Estate Services Fukuoka Co., Ltd.

are related parties as defined in the Enforcement Ordinance of the Investment Trust andInvestment Corporation Law. Therefore, according to the internal rules of IRE, Ichigo
Hotel REIT confirmed consent based on the approval made by the Ichigo Hotel REIT
Board Meeting held on October 2, 2015. Further, Ichigo Hotel REIT has obtained asecond opinion regarding the property’s appraisal and confirmed its propriety.

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

36

IV. Ownership History(1) Smile Hotel Kyoto Shijo
Overview
Name
Relationship to
Ichigo Hotel REIT
Reason for
Acquisition
Acquisition Price
Acquisition Date

Current Owner (Seller)
Shijo Holdings GK
Please refer to Section III.
Seller Overview

Previous Owner
Unrelated party―

Investment――
February 2014――

(2) Hotel Vista Premio Kyoto
Overview
Name
Relationship to
Ichigo Hotel REIT
Reason for
Acquisition
Acquisition Price
Acquisition Date

Current Owner (Seller)
Kawaramachi Holdings GK
Please refer to Section III.
Seller Overview

Previous Owner
Unrelated party―

Investment―

3,150,000,000 yen
January 2015――(3) Hotel Wing International Nagoya
Overview
Name
Relationship to
Ichigo Hotel REIT
Reason for
Acquisition
Acquisition Price
Acquisition Date

Current Owner (Seller)
Sapporo Holdings GK
Please refer to Section III.
Seller Overview

Previous Owner
Unrelated party―

Investment―

2, 500,000,000 yen
June 2015――(4) Nest Hotel Sapporo Ekimae
Overview
Name
Relationship to
Ichigo Hotel REIT
Reason for
Acquisition
Acquisition Price
Acquisition Date

Current Owner (Seller)
Sapporo Holdings GK
Please refer to Section III.
Seller Overview

Previous Owner
Unrelated party―

Investment―

1,665,000,000 yen
December 2014――

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

37

(5) Chisun Inn Osaka Hommachi
Overview
Name
Relationship to
Ichigo Hotel REIT
Reason for
Acquisition
Acquisition Price
Acquisition Date

Current Owner (Seller)
Ichigo Estate Co., Ltd.
Please refer to Section III.
Seller Overview

Previous Owner
Unrelated party―

Investment―

1,148,000,000 yen
February 2015――

(6) Comfort Hotel Hamamatsu
Overview
Name
Relationship to
Ichigo Hotel REIT
Reason for
Acquisition
Acquisition Price
Acquisition Date

Current Owner (Seller)
Hamamatsu Holdings GK
Please refer to Section III.
Seller Overview

Previous Owner
Unrelated party―

Investment――
December 2013――(7) Hotel Suave Kobe Asuta
Overview
Name
Relationship to
Ichigo Hotel REIT
Reason for
Acquisition
Acquisition Price
Acquisition Date

Current Owner (Seller)
Ichigo Inc.
Please refer to Section III.
Seller Overview
Investment

Previous Owner
Unrelated party―――
June 2009――(8) Nest Hotel Sapporo Odori
Overview
Name
Relationship to
Ichigo Hotel REIT
Reason for
Acquisition
Acquisition Price
Acquisition Date

Current Owner (Seller)
Ichigo Real Estate Services
Co., Ltd.
Please refer to Section III.
Seller Overview

Previous Owner
Unrelated party―

Investment―

1,000,000,000 yen
December 2014――

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

38(9) Valie Hotel Tenjin
Overview
Name
Relationship to
Ichigo Hotel REIT
Reason for
Acquisition
Acquisition Price
Acquisition Date

Current Owner (Seller)
Ichigo Real Estate Services
Fukuoka Co., Ltd.
Please refer to Section III.
Seller Overview

Previous Owner
Unrelated party

Investment―――
July 2014――

V. Broker Profile
N/A
VI. Transfer Schedule
Acquisition Decision Date

October 2, 2015

Contract Date

October 9, 2015

Settlement Date

November 30, 2015

Transfer Date

November 30, 2015

VII. Future Outlook
Earnings and dividend forecasts for the January 2016, July 2016, and January 2017 fiscal
periods have been announced in today’s release “Earnings and Dividend Forecasts for theJanuary 2016, July 2016, and January 2017 Fiscal Periods.”

Website of Ichigo Hotel REIT: www.ichigo-hotel.co.jp/english

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

39Reference: Post-Acquisition Portfolio
No.

Asset Name

Location

AcquisitionPrice(million yen)

% ofPortfolio

Numberof Guest
Rooms

001

Smile Hotel Kyoto Shijo

Kyoto

4,480

22.0%

138

002

Hotel Vista Premio Kyoto

Kyoto

3,600

17.6%

84

003

Hotel Wing International
Nagoya

2,670

13.1%

220

004

Nest Hotel Sapporo Ekimae

Nagoya,Aichi Prefecture
Sapporo,Hokkaido Prefecture

2,160

10.6%

162

005

Chisun Inn Osaka Hommachi

1,630

8.0%

130

006

Comfort Hotel Hamamatsu

1,550

7.6%

196

007

Hotel Suave Kobe Asuta

1,490

7.3%

133

008

Nest Hotel Sapporo Odori

1,450

7.1%

117

009

Valie Hotel Tenjin

1,380

6.8%

77

Osaka
Hamamatsu,
Shizuoka Prefecture
Kobe,
Hyogo Prefecture
Sapporo,Hokkaido Prefecture
Fukuoka% of Portfolio is the Acquisition Price as a percentage of the Total Acquisition Price androunded to the nearest second decimal place.

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the asset acquisitions by Ichigo Hotel REIT, and has not been
prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Hotel REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

40