This English translation is provided for information purposes only. If any discrepancy is identified between thistranslation and the Japanese original, the Japanese original shall prevail.
August 24, 2022
REIT Issuer:
Japan Hotel REIT Investment Corporation (TSE code: 8985)
Kaname Masuda, Executive Director
Asset Management Company:
Japan Hotel REIT Advisors Co., Ltd.
Hisashi Furukawa, President & CEO
Contact:
Makoto Hanamura
Director of the Board, Managing Director,
Head of Finance and Planning Division
TEL: +81-3-6422-0530
Notice Concerning Difference Between Operating Forecast and Actual Results
for the Midterm of the Fiscal Year Ending December 2022 (23rd Period), andOperating Forecast and Forecast of Dividend for the Fiscal Year Ending December 2022 (23rd Period)
Japan Hotel REIT Investment Corporation (hereinafter called “JHR”) informs you of the difference between the operating
forecast for the midterm of the fiscal year ending December 2022 (January 1, 2022 through December 31, 2022), announced
in “Financial Report for the Fiscal Year Ended December 31, 2021 (January 1, 2021 through December 31, 2021),” dated
February 25, 2022 and the actual results announced today. JHR also decided to revise the operating forecast and forecast of
dividend for the fiscal year ending December 2022 (January 1, 2022 through December 31, 2022) as follows.
1. Difference between operating forecast and actual results for the midterm of the fiscal year ending December 2022
(January 1, 2022 through June 30, 2022)

Previous forecast(A)
Announcement this time
(Actual results)(B)
Variance(C) = (B)－(A)Variance ratio(D) = (C) / (A)Reference
Midterm FY2021

Dividend per unit
(Excess ofearnings exclusive)

Dividend per unit
resulting fromexcess of earnings

JPY1M
TBD

JPY

JPY

－

－

JPY1M

JPY1M

JPY

JPY

323
JPY1M

(470)
JPY1M

(471)
JPY1M

－

－

JPY

JPY

－

－

－

－

－

－

%

%

%

%

%

%

－

－

－

－

－

－

JPY1M
4,589

JPY1M
(699)

JPY1M
(1,488)JPY1M(1,488)

JPY

JPY

－

－

Operatingrevenue

OperatingincomeOrdinary
incomeNet income

JPY1M
TBD

JPY1M
TBD

JPY1M
TBD

JPY1M

JPY1M

5,431
JPY1M

Note: This document is intended to serve as a press release to make available the information on the difference between operating forecast and actual results
for the midterm of the fiscal year ending December 2022 (23rd Period) and revisions to the operating forecast and forecast of dividend for the fiscal
year ending December 2022 (23rd period). This document should not be construed as an offer to sell or solicitation of an offer to purchase any investment
units or other investment of JHR. Prospective investors are advised to make any investment decisions at their own risk and responsibility.

12. Revision of the operating forecast and forecast of dividend for the fiscal year ending December 2022
(January 1, 2022 through December 31, 2022)

Previous forecast(A)
Revised forecast(B)
Variance(C) = (B)－(A)Variance ratio(D) = (C) / (A)Reference
Fiscal Year ended
December 2021
(Reference)
(*1)
(*2)
(*3)
(*4)
(*5)

Operatingrevenue

OperatingincomeOrdinary
incomeNet income

Dividend per unit
(Excess of earnings
exclusive)

Dividend per unit
resulting fromexcess of earnings

JPY1M
TBD
JPY1M

JPY1M
TBD
JPY1M

JPY1M
TBD
JPY1M

JPY1M
TBD
JPY1M

JPY
TBD
JPY

JPY
TBD
JPY

13,337

2,827

1,159

1,158

333

－

JPY1M

JPY1M

JPY1M

JPY1M

JPY

JPY

－

－

－

－

－

－

%

%

%

%

%

%

－

－

－

－

－

－

JPY1M

JPY1M

JPY1M

JPY1M

JPY

JPY

2,959

1,298

1,296

366

－

13,633(*1)

Net income per unit for the full fiscal year: JPY259(Calculated based on the estimate of average number of investment units during the period (4,467,006 units))
Include JPY3,258 million as gain on sale of property
Dividend per unit is calculated based on the number of investment units issued as of today: 4,467,006 units.
Total dividend is planned to be an amount of net income plus the reversed amount of reserve for temporary difference
adjustment in the amount of JPY332 million.
For the assumptions of the operating status and dividend forecast above, please refer to “<Reference Information 1>
Assumptions of the operating forecast for the full fiscal year ending December 2022 (23rd period)” below.
Amounts are rounded down to the nearest millions of yen and percentages are rounded off to the nearest first decimal
place. The same shall apply hereinafter in this document.

3. Rational for the revision of the operating forecast and forecast of dividend for the full fiscal year ending December
2022
JHR informs you of revision of operating forecast and forecast of dividend for the full fiscal year ending December
2022 which left undecided due to impact of spread of infection by COVID-19.
In 2022, while impact by COVID-19 variants were continued from the beginning of the year, measures to ease
movement restrictions were expanded and we saw some sign of recovery on domestic leisure demand. For inboundleisure demand, we saw some initiatives to normalization by easing entry restrictions such as allowing entry for visitors
for tourism is allowed in June. Although forecast of the market is still not clear due to epidemic of COVID-19 variants,
we expect trend of recovery on demand for accommodation will continue mainly by domestic demand for travel.
Under the circumstance mentioned above, in operating forecast for fiscal year ending December 2022, we expect realestate operating revenue will increase JPY2,962 million from last year due to increase of variable rent and income frommanagement contract. Moreover, we expect reduction of operating expense by JPY163 million and reduction of nonoperating expense by JPY67 million due to reduction of financial cost. As a result, we expect JPY1,158 million as net
income. Net income will be reduced by JPY138 million in comparison to last fiscal year when we recognized JPY3,258
million as gain on sale of real estate properties.
For detail of operating forecast, please see “4. Highlight of operational forecast and forecast of dividend” below. For
detail of operating result of hotels with variable rent structure, please see “<Reference Information 2> Hotel operationindexes, sales and GOP”.

Note: This document is intended to serve as a press release to make available the information on the difference between operating forecast and actual results
for the midterm of the fiscal year ending December 2022 (23rd Period) and revisions to the operating forecast and forecast of dividend for the fiscal
year ending December 2022 (23rd period). This document should not be construed as an offer to sell or solicitation of an offer to purchase any investment
units or other investment of JHR. Prospective investors are advised to make any investment decisions at their own risk and responsibility.

2

4. Highlight of operating forecast and forecast of dividend
The following is the operating forecast and forecast of dividend for the full fiscal year ending December 2022 andcomparison and the major factors causing the variance with operating result and dividend for the full fiscal year ended
December 2021.
（Unit︓JPY MM）

Properties

FY2021/12(22nd Period）

FY2022/12(23rd Period）

ResultForecast(A)(B)

Comparison with thePrevious Year

(B)-(A)

Factors Causing Variance

Variance

Acquisition Price

41
363,54241
363,542－－―

Operating Revenue

13,633

13,337(296)(2.2%)

Real Estate
Operating Revenue

10,374

13,337

2,962

28.6%

(140)

(2.2%) ・The Two HMJ Rebranded Hotels: decrease by JPY168 MM

No. of Properties

Fixed Rent

Other Income

Composition

Composition

61.8%

6,413 47.0%

6,273

8.4%

872 6.9%

918―

・The Ishin Group Hotels: increase by JPY114 MM・Other hotels and tenants: increase by JPY6 MM・Impact of property sold in 2021: decrease by JPY92 MM

46

5.3%

・The 14 HMJ Hotels: increase by JPY2,895 MM

3,056

Variable Rent

29.8%

ProfitandLoss

3,088 46.1%

・The Ishin Group Hotels: decrease by JPY51 MM・Other hotels and tenants: increase by JPY93 MM
・Impact of property sold in 2021: decrease by JPY33 MM

6,145

Gain on Sale ofReal Estate
Properties, etc.

3,258

－

(3,258)(100.0%)

3,085

48.5%

3,159

204.6%NOI (*1)

6,366

9,452

NOI Yield

1.8%

2.6%

NOI after Depreciation (*1)

1,544

4,703

NOI Yield after
Depreciation

0.4%

1.3%

Operating Income

2,959

2,827

(132)

(4.5%)

Ordinary Income

1,298

1,159

(138)

(10.6%)Net Income

1,296

1,158

(138)

(10.7%)

Amount of Reversal from
Reserve for Temporary
Difference Adjustments(Negative Goodwill)

335

332

(2)

Total Dividends

1,634

1,487

(147)

Number of Units Issued(Unit)

4,467,006

4,467,006－

Dividend per Unit (JPY)

366

333

(33)

Dividend

(*1)

(*2)
(*3)

99.0% ・The Accor Group Hotels: increase by JPY152 MM(0.8%) Amount of reversal from reserve for temporary difference

adjustments (*2)
2021︓50-year negative goodwill amortization: JPY262 MM,(9.0%)
Loss on retirement of noncurrent assets: JPY16 MM,
Amortization of trademark rights: JPY56 MM
2022︓―
50-year negative goodwill amortization: JPY262 MM,
Loss on retirement of noncurrent assets: JPY13 MM,
Amortization of trademark rights: JPY56 MM(9.0%)NOI (Net Operating Income) = Real estate operating revenue – Real estate operating costs + Depreciation+ Loss on retirement of noncurrent assets + Asset retirement obligations expenses
NOI yield = NOI ÷ acquisition price
NOI after depreciation = Real estate operating revenue – Real estate operating costs
NOI yield after depreciation = NOI after depreciation ÷ acquisition priceFor the detail of amount to be reversed from reserve for temporary difference adjustments please see “Assumptions of the operating forecast
for the full fiscal year ending December 2022 (23rd period)” below. The same shall apply hereinafter.
The Five HMJ hotels refers to following five hotels which JHR leases to Hotel Management Japan. Kobe Meriken Park Oriental Hotel,
Oriental Hotel tokyo bay, Namba Oriental Hotel, Hotel Nikko Alivila and Oriental Hotel Hiroshima.
The 14 HMJ hotels refers to The Five HMJ Hotels plus following 9 hotels which JHR leases to subsidiaries of HMJ. Oriental Hotel Okinawa
Resort & Spa, Sheraton Grand Hiroshima Hotel (main facility of ACTIVE-INTER CITY HIROSHIMA), Oriental Hotel Fukuoka Hakata
Station, Holiday Inn Osaka Namba, Hilton Tokyo Narita Airport, International Garden Hotel Narita, Hotel Nikko Nara, Hotel Oriental Express
Osaka Shinsaibashi, Hilton Tokyo Odaiba.
The Two HMJ Rebranded Hotels refers to following two hotels which rebranded in 2021 after lessee have changed to subsidiaries of HMJ.
Hotel Oriental Express Fukuoka Tenjin and Oriental Hotel Universal City.
The 16 HMJ Hotels refers to The 14 HMJ Hotels plus The Two HMJ Rebranded Hotels.
The same shall apply hereinafter.

Note: This document is intended to serve as a press release to make available the information on the difference between operating forecast and actual results
for the midterm of the fiscal year ending December 2022 (23rd Period) and revisions to the operating forecast and forecast of dividend for the fiscal
year ending December 2022 (23rd period). This document should not be construed as an offer to sell or solicitation of an offer to purchase any investment
units or other investment of JHR. Prospective investors are advised to make any investment decisions at their own risk and responsibility.

3

(*4)
(*5)
(*6)

The Accor Group Hotels refers to following 5 hotels. ibis Styles Kyoto Station, ibis Styles Sapporo, Mercure Sapporo, Mercure Okinawa Naha,
Mercure Yokosuka. The same shall apply hereinafter.
The Ishin Group Hotels refers to following 4 hotels. the b suidobashi, the b ikebukuro, the b hachioji and the b hakata, The same shall apply
hereinafter.
The 25 Hotels with Variable Rent, etc. refers to The 16 HMJ Hotels plus Accor Group Hotels plus Ishin Group Hotels. The same shall apply
hereinafter.

(Note)
The above is the forecast based on status of operation as of today, and actual dividend per unit may fluctuate. This
forecast does not guarantee the amount of dividend shown above.
* Website of Japan Hotel REIT Investment Corporation: https://www.jhrth.co.jp/en/

Note: This document is intended to serve as a press release to make available the information on the difference between operating forecast and actual results
for the midterm of the fiscal year ending December 2022 (23rd Period) and revisions to the operating forecast and forecast of dividend for the fiscal
year ending December 2022 (23rd period). This document should not be construed as an offer to sell or solicitation of an offer to purchase any investment
units or other investment of JHR. Prospective investors are advised to make any investment decisions at their own risk and responsibility.

4<Reference Information 1> Assumptions of the operating forecast for the full fiscal year ending December 2022
(23rd period)
Item
Assumptions
Calculation
Period・ Full fiscal year ending December 2022 (23rd Period): January 1, 2022 through December 31, 2022
(365 days)

・ The 41 properties owned by JHR as of today are assumed.
・ It is assumed that there will be no change (acquisition of new property or disposition of the existing
Assets underproperties, etc.) in assets under management through the end of the fiscal year ending December 2022
Management(23rd period). However, the actual results may fluctuate depending on the changes in assets undermanagement that may take place.

Operating
Revenue

・ Operating revenue is calculated based on the conditions of the lease and other effective contracts, taking
into consideration the competitiveness of hotels, market environment, and other factors. If there are lease
contracts with facilities other than hotels, such as commercial facilities and offices, operating revenue
calculated based on the said lease contracts is included. Moreover, operating forecast may fluctuatesignificantly due to the impact of COVID-19.
・ Rents, etc. of the main hotels are calculated based on the following assumptions.
(1) The 14 HMJ Hotels
JHR concluded a memorandum of understanding for the fixed-term building lease contract for The 14
HMJ Hotels on February 25, 2022. From January 1, 2022 through December 31, 2022, the rent is only
variable rent and is calculated by multiplying the hotel AGOP (*1) by the variable rent ratio for each
hotel. However, if AGOP is less than 0 (zero), the variable rent will be 0 (zero).
(Unit: millions of yen)
AGOP of
Variable rent ratio
Variable renteach hotel
Midterm
92
79
Kobe Meriken Park
86.0%
Oriental Hotel
Full year
447
384
276
218
Midterm
79.0%
Oriental Hotel tokyo bay
Full year
809
639
183
166
Midterm
91.0%
Namba Oriental Hotel
Full year
402
366
63
47
Midterm
74.0%
Hotel Nikko Alivila
Full year
977
723
332
295
Midterm
89.0%
Oriental Hotel Hiroshima
Full year
584
520
Midterm(154)－
Oriental Hotel Okinawa
89.0%
Resort & Spa
Full year244
217
Midterm
106
98
Sheraton Grand Hiroshima
93.0%
Hotel (*2)
Full year
331
308
Midterm
193
187
Oriental Hotel Fukuoka
97.0%
Hakata Station
Full year
591
574
109
106
Midterm
98.0%
Holiday Inn Osaka Namba
Full year
151
148
68
65
Midterm
95.0%
Hilton Tokyo Narita Airport
Full year
102
97
Midterm
117
111
International Garden Hotel
95.0%
NaritaFull year
188
179
8
8
Midterm
95.0%
Hotel Nikko Nara
Full year
172
164

Note: This document is intended to serve as a press release to make available the information on the difference between operating forecast and actual results
for the midterm of the fiscal year ending December 2022 (23rd Period) and revisions to the operating forecast and forecast of dividend for the fiscal
year ending December 2022 (23rd period). This document should not be construed as an offer to sell or solicitation of an offer to purchase any investment
units or other investment of JHR. Prospective investors are advised to make any investment decisions at their own risk and responsibility.

5

Item

Assumptions(Unit: millions of yen)
Hotel AGOP
Hotel Oriental Express Osaka
Shinsaibashi (*3)
Hilton Tokyo Odaiba
Total
(*1)

(*2)

(10)
(34)
(10)
707
1,374
5,678

Variable rent

87.0%
97.0%
－

－
－
－
686
1,384
5,010

AGOP (adjusted GOP) is the amount calculated by subtracting certain fees and other items from GOP or GOL.
GOP (gross operating profit) are the remainder after expenses incurred in hotel operation, such as personnel costs
and general and administrative expenses, etc., are deducted from total sales. The same shall apply hereinafter inthis document.
Stating the rent for Sheraton Grand Hiroshima Hotel, the major facility of ACTIVE-INTER CITY HIROSHIMA.
Fixed rent and variable rent for office and commercial tenants of ACTIVE-INTER CITY HIROSHIMA are as
follows.

Midterm
Full year(*3)

Midterm
Full year
Midterm
Full year
Midterm
Full year

Variablerent ratio

Variable rent
3
5

Fixed rent
251
501

(Unit: millions of yen)
Total rent
254
507

Hotel Oriental Express Osaka Shinsaibashi is assumed to be closed throughout the period.

(2) The Two HMJ Rebranded Hotels
Hotel Oriental Express Fukuoka Tenjin and Oriental Hotel Universal City were rebranded with HMJ
subsidiaries as the lessees on June 18, 2021 and July 1, 2021, respectively. The assumptions for fixed andvariable rent stipulated in the fixed-term building contract after rebranding concluded on February 12,2021 are as follows.
< Hotel Oriental Express Fukuoka Tenjin>
Lease term: June 18, 2021 to December 31, 2031
Total rent = Fixed rent + Variable rent
Fixed rent = ¥150 million (actual amount for the year)
Fixed rent is waived from June 18, 2021 through June 30, 2022. The fixed rent to be recognized for the
fiscal year ending December 2022 is expected to be ¥135 million, which is 12 months’ worth of theaverage fixed rent of ¥11 million per month, calculated as the total fixed rent for the whole lease period(¥1,425 million) divided proportionally by the period of lease contract.
Variable rent = [Hotel AGOP – AGOP base amount of ¥165 million] × Variable rent ratio (97.0%)< Oriental Hotel Universal City>
Lease term: July 1, 2021 to December 31, 2031
Total rent = Fixed rent + Variable rent
Fixed rent = ¥350 million (actual amount for the year)
Fixed rent is waived from July 1, 2021 through June 30, 2022. The fixed rent to be recognized for the
fiscal year ending December 2022 is expected to be ¥316 million, which is 12 months’ worth of theaverage fixed rent of ¥26 million per month, calculated as the total fixed rent for the whole lease period(¥3,325 million) divided proportionally by the period of lease contract.
Variable rent = [Hotel AGOP – AGOP base amount of ¥370 million] × Variable rent ratio (95.0%)

Note: This document is intended to serve as a press release to make available the information on the difference between operating forecast and actual results
for the midterm of the fiscal year ending December 2022 (23rd Period) and revisions to the operating forecast and forecast of dividend for the fiscal
year ending December 2022 (23rd period). This document should not be construed as an offer to sell or solicitation of an offer to purchase any investment
units or other investment of JHR. Prospective investors are advised to make any investment decisions at their own risk and responsibility.

6

Item

Assumptions
Variable rent of The Two HMJ Rebranded Hotels are as follows
Hotel AGOP
Hotel Oriental Express
Fukuoka Tenjin
Oriental Hotel Universal
City
Total

Midterm
Full year
Midterm
Full year
Midterm
Full year

32
134
30
336
62
471

AGOP baseamount
82
165
185
370
－
－

(Unit: millions of yen)
Variable rent
Variable rent
ratio
－
97.0%
－
－
95.0%
－
－
－
－

(3) Income from management contracts (*4) and variable rent from other hotels with variable rent, etc.
(Unit: millions of yen)ibis Styles Kyoto Station (*4)
ibis Styles Sapporo (*4)
Mercure Sapporo (*4)
Mercure Okinawa Naha (*4)
Mercure Yokosuka
the b suidobashi
the b ikebukuro
the b hachioji
the b hakata
Comfort Hotel Tokyo Higashi Nihombashi
Smile Hotel Nihombashi Mitsukoshimae
Chisun Hotel Kamata
Chisun Inn Kamata
Hilton Tokyo Bay
Hilton Nagoya
Total
(*4)

Midterm

Full year

－
0
－
4
66
－
162
－
－
－
－
4
3
Undisclosed (*5)
Undisclosed (*5)
475

11
114
93
18
125
－
249
－
－
－
－
28
15
Undisclosed (*5)
Undisclosed (*5)
1,129Management contract structure is introduced. The management contract structure involves entrusting themanagement of owned hotel properties to the management company and incorporating the results of the business
into JHR as real estate operating revenue. The amount of GOP for each hotel is recognized as management
contract revenue and as operating revenue. In case that GOP is negative amount (GOL), such amount will berecognized as management contract cost and accounted as operating expense item. GOL of each hotel, which isaccounted as management contract costs, is as follows.

(Unit: millions of yen)ibis Styles Kyoto Station
Mercure Sapporo
Total
(*5)

Midterm

Full year

(17)
(2)
(20)

－
－
－

Undisclosed since tenants that concluded lease contracts did not agree to disclose rent revenue, etc.

Note: This document is intended to serve as a press release to make available the information on the difference between operating forecast and actual results
for the midterm of the fiscal year ending December 2022 (23rd Period) and revisions to the operating forecast and forecast of dividend for the fiscal
year ending December 2022 (23rd period). This document should not be construed as an offer to sell or solicitation of an offer to purchase any investment
units or other investment of JHR. Prospective investors are advised to make any investment decisions at their own risk and responsibility.

7

Item

Assumptions
・ The following is the breakdown of variable rent and income from management contracts(Unit: millions of yen)
The 14 HMJ Hotels
The Two HMJ Rebranded Hotels
Office and commercial tenants (*6)
Other hotels with variable rent, etc. (16 hotels)
Total (30 hotels)
(*6)
(*7)

Midterm

Full year

1,384
－
3
475
1,863

5,010
－
5
1,129
6,145

Variable rent for office and commercial tenants of ACTIVE-INTER CITY HIROSHIMA is shown.
For details of variable rent, please refer to page 45, “3. Reference Information; (1) Information on values ofassets under management, etc. B. Assets under management; I Other major assets under management; (iii)
Overview of the hotel business; a. Rent structures of hotels with variable rent, management contract orrevenue sharing” of the “Midterm Financial Report for the Fiscal Year Ending December 31, 2022 (January 1,
20–2 - June 30, 2022)” dated August 24, 2022.

・ With respect to real estate operating costs, which constitute a major part of the operating expenses, expenses
other than depreciation are calculated based on historical data, and variable factors are reflected in thecalculation.
・ It is assumed that ¥1,923 million will be recognized as expenses for fixed asset taxes, city planning taxes,
etc.
・ Capital expenditure is assumed to be ¥4,716 million (¥3,366 million for capital expenditure I, ¥1,349 million
for capital expenditure II). Capital expenditure III is not planned for the fiscal year ending December 2022.
OperatingExpenses(*) JHR classifies capital expenditures into the following three categories. (I) Capital investment related to renewal ofequipment and facilities of buildings which is required to maintain proper values of properties, (II) capital
investment for fixtures, furniture and equipment that are not directly related to building structure or facilities but
necessary for operating hotels, and (III) strategic capital investment such as renovating guest rooms, etc. for
improving the competitiveness of the hotels.

・ Depreciation is calculated using the straight-line method including the planned capital expenditures above
and is assumed to be ¥4,733 million.
・ Repair expenses for buildings are recognized as expenses in the assumed amount necessary for each operating
period. Please note that the repair expenses of each operating period may differ materially from the forecast
amount for various reasons, such as; (1) Emergency repair expenses may be necessary due to damage tobuildings from unexpected causes; (2) The amount of repair expenses generally tends to increase in difference
over time; and (3) Repair expenses are not required on a regular basis.
・ ¥1,680 million is expected as non-operating expenses for borrowing-related costs and other expenses.
Non-operating
Borrowing-related costs include interest expense, amortization for financing fee and arrangement fee.
Expenses・ Expenses for issuance of new investment units and secondary offering are amortized over a period of three
years by the straight-line method.
・ The balance of interest-bearing debt (sum of loans and investment corporation bonds) as of today is ¥164,754
million. Balance of interest-bearing debt as of end of December 2022 is expected to be ¥164,754 million as
well.
Interest・ There are ¥17,625 million of debt that will mature during the 2nd half of the fiscal year ending December
bearing Debt
2022 (23rd Period), all of such loans are assumed to be refinanced.
・ There are ¥6,000 million of investment corporation bonds that will mature during the 2nd half of the fiscal
year ending December 2022 (23rd Period), it is assumed that the same amount of investment corporation
bonds will be issued.

Note: This document is intended to serve as a press release to make available the information on the difference between operating forecast and actual results
for the midterm of the fiscal year ending December 2022 (23rd Period) and revisions to the operating forecast and forecast of dividend for the fiscal
year ending December 2022 (23rd period). This document should not be construed as an offer to sell or solicitation of an offer to purchase any investment
units or other investment of JHR. Prospective investors are advised to make any investment decisions at their own risk and responsibility.

8

Item

Assumptions
・ Dividend per unit for the fiscal year ending December 2022 (23rd period) is calculated based on the following
assumptions.
Net income
Reversal of reserve for temporary difference adjustment(negative goodwill)
50-year amortization amount of negative goodwill (*1)
Loss on retirement of noncurrent assets (*2)
Amortization of trademark rights (*3)
Distributable amount
Total number of investment units issued
Dividend per unit

Dividend per
Unit

(*1)
(*2)
(*3)

¥1,158 million¥262 million¥13 million¥56 million¥1,491 million
4,467,006 units¥333¥262 million (hereinafter called “50-year amortization amount of negative goodwill”) is scheduled to be paidout as dividends, with the remaining balance of the reserve for temporary difference adjustment set as the
maximum amount, for every fiscal year.
The amount recognized as a loss on retirement of noncurrent assets will be appropriated by reserve fortemporary difference adjustment (negative goodwill) and is expected to have no impact on dividend per unit.
The trademark rights are amortized over 10 years using the straight-line method. Amortization is expected to berecognized during the current fiscal year will be appropriated by reserve for temporary difference adjustment(negative goodwill) and is expected to have no impact on dividend per unit.

・ Dividend per unit may fluctuate due to various causes, such as fluctuation of rent revenue resulting fromtransfer of assets under management, change of tenants, etc. at hotels, change in the business environment ofhotel business for hotel tenants, etc., unexpected repairs, and actual number of new investment units issued,
etc.
・ The remaining balance of the reserve for temporary difference adjustment (negative goodwill) after theappropriation of the reserve for temporary difference adjustment (negative goodwill) for dividends for the
fiscal year ending December 2022 (23rd period) is expected to be ¥9,643 million.
Dividend per
Unit・ It is assumed that the excess of earnings (dividend per unit resulting from excess of earnings) will not be
Resulting
distributed.
from Excessof Earnings

Others・ It is assumed that revision in law, tax system, accounting standard, regulations of the listing, and regulationsof the Investment Trusts Association, Japan that may impact the forecast above will not be made.
・ It is assumed that unexpected major incident will not occur in the general economy, real estate market andhotel business environment, etc.
・ The numerical values are rounded down to the nearest millions of yen in the assumptions above.

Note: This document is intended to serve as a press release to make available the information on the difference between operating forecast and actual results
for the midterm of the fiscal year ending December 2022 (23rd Period) and revisions to the operating forecast and forecast of dividend for the fiscal
year ending December 2022 (23rd period). This document should not be construed as an offer to sell or solicitation of an offer to purchase any investment
units or other investment of JHR. Prospective investors are advised to make any investment decisions at their own risk and responsibility.

9<Reference Information 2> Hotel operation indexes, sales and GOP (gross operating profit)
The numeral figures are based on figures obtained from hotel lessees, etc. Please note that these figures have not been
audited or gone through other procedures. No guarantee is made as to the accuracy or completeness of the figures andinformation.
ADR (*1) and RevPAR (*2) are rounded off to the nearest yen. Sales and GOP are rounded off to the nearest millions ofyen.
Occupancy rate and numbers in percentage are rounded off to one decimal place.
<1> The 16 HMJ Hotels
Fiscal year ended
December 2021
Comparison
with 2019

1st Half: Result
2nd Half: Forecast
Full Year: Forecast

Comparison
with previous
periodComparison
with 2019

26.4%(59.5pt)

54.6%

28.2pt(31.3pt)

47.8%(40.6pt)

69.2%

21.4pt(19.2pt)

37.2%(50.0pt)

62.0%

24.8pt(25.2pt)

12,615(26.2%)

12,292(2.6%)(28.1%)

14,038(26.2%)

16,23915.7%(14.6%)

13,537(25.1%)

14,5147.2%(19.7%)

3,333(77.3%)

6,716

101.5%(54.2%)

6,709(60.1%)

11,23867.5%(33.1%)

5,035(68.0%)

8,995

78.7%

(42.9%)

8,429(66.8%)

12,72050.9%(49.8%)

13,140(54.0%)

19,491

48.3%(31.8%)

21,569(60.0%)

32,211

49.3%(40.3%)(164)(102.1%)

1,536

－%

(80.5%)

2,178(79.5%)

4,878

124.0%(54.0%)

2,014(89.1%)

6,414

218.4%(65.3%)

ResultOccupancy
rate

ADR

RevPARSales(JPY1M)GOP(JPY1M)(*1)(*2)

First halfof the year
Secondhalf of theyear
Full year
First halfof the year
Secondhalf of theyear
Full year
First halfof the year
Secondhalf of theyear
Full year
First halfof the year
Secondhalf of theyear
Full year
First half ofthe year
Secondhalf of theyear
Full year

Fiscal year ending December 2022

ADR: Represents average daily rate, which is calculated by dividing total rooms revenue for a certain period (including
service charges) by the total number of rooms sold during the period. The same shall apply hereinafter in this document.
RevPAR: Represents revenue per available room, which is calculated by dividing total rooms revenue for a certain period(including service charges) by the total number of rooms available for sale during the period. The same shall apply hereinafterin this document.

Note: This document is intended to serve as a press release to make available the information on the difference between operating forecast and actual results
for the midterm of the fiscal year ending December 2022 (23rd Period) and revisions to the operating forecast and forecast of dividend for the fiscal
year ending December 2022 (23rd period). This document should not be construed as an offer to sell or solicitation of an offer to purchase any investment
units or other investment of JHR. Prospective investors are advised to make any investment decisions at their own risk and responsibility.

10<2> The 25 Hotels with Variable Rent, etc.
Fiscal year ended
December 2021

First half ofthe yearOccupancy Second half
rateof the year
Full year
First half ofthe year
Second half
ADRof the year
Full year
First half ofthe year
Second half
RevPARof the year
Full year
First half ofthe year
Sales
Second half
(JPY1M)of the year
Full year
First half of theyear
GOP
Second half
(JPY1M)of the year
Full year

Fiscal year ending December 2022

ResultComparison
with 2019

1st Half: Result
2nd Half: Forecast
Full Year: Forecast

Comparison
with previous
periodComparison
with 201929.5%(56.0pt)

55.8%

26.3pt(29.6pt)

48.7%(38.6pt)

69.9%

21.2pt(17.4pt)

39.2%(47.2pt)

62.9%

23.7pt(23.5pt)

10,755(30.9%)

10,8721.1%(30.1%)

12,143(28.9%)

14,08916.0%(17.5%)

11,625(28.8%)

12,6759.0%(22.4%)

3,169(76.2%)

6,063

91.4%

(54.4%)

5,913(60.4%)

9,846

66.5%

(34.0%)

4,552(67.7%)

7,971

75.1%

(43.5%)

9,512(67.3%)

14,36451.0%(50.6%)

14,567(55.0%)

21,78049.5%(32.8%)

24,079(60.8%)

36,14450.1%(41.2%)(96)(101.0%)

1,819

－%

(80.8%)

2,463(79.9%)

5,387

118.7%(56.0%)

2,367(89.1%)

7,206

204.4%(66.8%)

Note: This document is intended to serve as a press release to make available the information on the difference between operating forecast and actual results
for the midterm of the fiscal year ending December 2022 (23rd Period) and revisions to the operating forecast and forecast of dividend for the fiscal
year ending December 2022 (23rd period). This document should not be construed as an offer to sell or solicitation of an offer to purchase any investment
units or other investment of JHR. Prospective investors are advised to make any investment decisions at their own risk and responsibility.

11