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.
February 9, 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 Revision of Operating Forecast
and Forecast of Dividend for the Fiscal Year Ended December 2021 (22nd Period)
Japan Hotel REIT Investment Corporation (hereinafter called “JHR”) informs you of the revision of the operating forecast
and forecast of dividend for the fiscal year ended December 2021 (January 1, 2021 through December 31, 2021), announced
in “Notice Concerning Revision of Operating Forecast and Forecast of Dividend for the Fiscal Year Ended December 2021
(22nd Period)” dated September15, 2021.

1. Revision of operating forecast and forecast of dividend for the fiscal year ended December 2021
(January 1, 2021 through December 31, 2021)

Previous forecast(A)
Forecast this time
(B)
Variance(C) = (B)－(A)Variance ratio(D) = (C) / (A)(Reference)
(*1)
(*2)
(*3)

(*4)

Operatingrevenue

OperatingincomeOrdinary
incomeNet income

JPY1M

JPY1M

JPY1M

JPY1M

Dividend per unit
(Excess ofearnings
exclusive)
JPY

12,808

1,917

208

207

120

－

JPY1M

JPY1M

JPY1M

JPY1M

JPY

JPY

Dividend per unit
resulting fromexcess of earnings
JPY

13,633

2,959

1,298

1,296

366

－

JPY1M

JPY1M

JPY1M

JPY1M

JPY

JPY

824

1,042

1,089

1,089

246

－

%

%

%

%

%

%

6.4

54.3

522.8

525.9

205.0

－

Forecast of net income per unit for the full fiscal year: ¥290
(Calculated based on the average number of investment units during the period (4,466,061 units))
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 ¥335 million.
For the details of the operating forecast and forecast of dividend above, please refer to <Reference Information 1>“Assumptions of the operating forecast for the full fiscal year ended December 2021 (22nd period)”
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.

Note: This document is intended to serve as a press release to make available the information on the revision of operating forecast and forecast of dividend
for the fiscal year ended December 2021 (22nd period). This document should not be construed as an offer to sell or solicitation of an offer to purchaseany investment units or other investment of JHR. Prospective investors are advised to make any investment decisions at their own risk and responsibility.

12. Rationale for revisions to the operating forecast for the fiscal year ended December 2021 (January 1, 2021
through December 31, 2021)
Since operational result of JHR for fiscal year ended December 2021 (22nd period) have almost become clear,
JHR revises the operating forecast and forecast of dividend as of today.
For the detail of operational result of major hotels with variable rent, etc., please refer to <Reference Information
2> Hotel operation indexes, sales and GOP (Operating income)Note: This document is intended to serve as a press release to make available the information on the revision of operating forecast and forecast of dividend
for the fiscal year ended December 2021 (22nd period). This document should not be construed as an offer to sell or solicitation of an offer to purchaseany investment units or other investment of JHR. Prospective investors are advised to make any investment decisions at their own risk and responsibility.

2

3.

Highlights of the operating forecast and forecast of dividend
The following is the comparison and the major factors causing the variance between the operating forecast and forecastof dividend for the full fiscal year ended December 2021 (22nd period) and the operating forecast and forecast of
dividend announced in “Notice Concerning Revision of Operating Forecast and Forecast of Dividend for the Fiscal
Year Ended December 2021 (22nd Period)” dated September15, 2021 (previous forecast) for the full fiscal year ended
December 2021.
(Unit: millions of yen)
FY2020(21st Period)

FY2021(22nd Period)
Previous
Forecast

ActualForecast This Time(A)
Properties

%

42

41

41

-

Acquisition Price

370,031363,542

363,542--

Operating Revenue

13,83812,808

13,633824

6.4%

10,374

730

7.6%

0.0%

10,495Composition

9,643
Composition-

Composition

Fixed Rent

72.8%

7,640

66.5%

6,411

61.8%

6,413

2

Other Income

8.5%

892

9.4%

907

8.4%

872

(35)

(3.9%) Mainly due to a decrease in utility revenues

3,088

763

1) Increase in variable rent of the HMJ Group Hotels (*3) by
JPY698MM
2) Increase iin variable rent, etc. of the Accor Group Hotels (*3) by
32.9%
91MM
3)Increase in variable rent of the Ishin Group Hotels (*4) by 13MM4)Decrease in variable rent of Hilton Nagoya by 39MM

93

3.0%

17.2%

Variable Rent

18.7%

1,963

24.1%

2,324

29.8%

Gain on Sale ofReal Estate
Properties, etc.

3,343

3,165

3,258

NOI (Note 2)

6,547

5,433

6,366

933

NOI Yield

1.8%

1.5%

1.8%

0.3%

NOI after Depreciation

1,778

648

1,544

895

NOI Yield after
Depreciation

0.5%

0.2%

0.4%

0.2%

Operating Income

3,176

1,917

2,959

1,042

54.3%

Ordinary Income

1,398

208

1,298

1,089

522.8%Net Income

1,527

207

1,296

1,089

525.9%

Reversal from Reserve for
Temporary
Difference Adjustments(Negative Goodwill)

305

329

335

5

Total Dividends

1,829

536

1,634

1,098

Number of Units Issued(Unit)

4,462,347

4,467,006

4,467,006-

Dividend per Unit (JPY)

410

120

366

246

(Note 2)

Dividend(B)-(A)

Factors Causing Variance

No. of Properties

Real Estate
Operating Revenue

Profit
and
Loss

(B)

Comparison with thePrevious Forecast

138.1%

Increase in Depreciation by 31MM

1.8% Reversed Amount of the Reserve for Temporary Difference

Adjunsment (*6)
2020: 50-year negative goodwill amortization: JPY262MM, Loss onretirement of noncurrent assets: 5MM, Amortization of trademark
205.0%
rights: 37MM
2021: 50-year negative goodwill amortization: JPY262MM, Loss on- retirement of noncurrent assets: 16MM, Amortization of trademark
rights: 56MM
205.0%(*1)

Factors Causing Variance states a comparison with the previous forecast..

(*2)

HMJ Group Hotels refers to 14 hotels: Kobe Meriken Park Oriental Hotel, Oriental Hotel tokyo bay, Namba Oriental Hotel,
Hotel Nikko Alivila, and Oriental Hotel Hiroshima, which JHR leases to HMJ, an affiliated company of asset managementcompany (hereinafter called the “HMJ Hotels”), plus Okinawa Marriott Resort & Spa, Sheraton Grand Hiroshima Hotel (mainfacility 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 Shinsaibash, andHilton Tokyo Odaiba, which JHR leases to subsidiaries of HMJ. Although, the lessees of Hotel Oriental Express Fukuoka
Tenjin (formerly Hotel Ascent Fukuoka) and Oriental Hotel Universal City (formerly Hotel Keihan Universal City) were
replaced with HMJ subsidiaries on June 18, 2021 and July 1, 2021 respectively, these hotels are not included in the HMJ
Group Hotels. The same shall apply hereinafter.
Accor Group Hotels refers to 6 hotels: ibis Tokyo Shinjuku, ibis Styles Kyoto Station, ibis Styles Sapporo, Mercure Sapporo,
Mercure Okinawa Naha, Mercure Yokosuka. The same shall apply hereinafter.

(*3)

Note: This document is intended to serve as a press release to make available the information on the revision of operating forecast and forecast of dividend
for the fiscal year ended December 2021 (22nd period). This document should not be construed as an offer to sell or solicitation of an offer to purchaseany 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)

Ishin Group Hotels refers to 4 hotels: the b suidobashi, the b ikebukuro, the b hachioji, and the b hakata. The same shall apply
hereinafter.
Each is calculated using the following formula. The same shall apply hereinafter.
NOI (Net Operating Income) = Real estate operating revenue – Real estate operating costs + Depreciation + Loss on retirementof 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 details of the reversed amount of the reserve for temporary difference adjustment, please refer to “<Reference
Information 1> Assumptions of the operating forecast for the full year of the fiscal year ended December 2021 (22nd period)”
below. 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 revision of operating forecast and forecast of dividend
for the fiscal year ended December 2021 (22nd period). This document should not be construed as an offer to sell or solicitation of an offer to purchaseany 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 for revision of the operating forecast for the full fiscal year ended December 2021 (22nd period)
Item

Assumptions

Calculation ・ Full fiscal year ended December 2021 (22nd Period): January 1, 2021 through December 31, 2021
Period(365 days)
Assets underManagement

・ The 41 properties owned by JHR as of today after the sale of ibis Tokyo Shinjuku (hereinafter called the“Sale”) on December 15, 2021 are assumed.

・ Gain on sale of real estate properties of ¥3,258 million is assumed to be recognized due to the Sale.
・ 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 are included.
・ Rents, etc. of the main hotels are calculated based on the following assumptions.
(1) The HMJ Group Hotels
JHR concluded a memorandum of understanding for the fixed-term building lease contract with the HMJ
Group Hotels on August 25, 2020. From January 1, 2021 through December 31, 2021, 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)
Hotel AGOP
Kobe Meriken Park Oriental
Hotel
Oriental Hotel tokyo bay
Operating
Revenue

Namba Oriental Hotel
Hotel Nikko Alivila
Oriental Hotel Hiroshima
Oriental Hotel Okinawa Resort& Spa
Sheraton Grand Hiroshima
Hotel (*2)
Oriental Hotel Fukuoka Hakata
StationHoliday Inn
Osaka Namba
Hilton Tokyo Narita Airport
International Garden Hotel
NaritaHotel Nikko Nara
Hotel Oriental Express Osaka
Shinsaibashi

Midterm
Full year
Midterm
Full year
Midterm
Full year
Midterm
Full year
Midterm
Full year
Midterm
Full year
Midterm
Full year
Midterm
Full year
Midterm
Full year
Midterm
Full year
Midterm
Full year
Midterm
Full year
Midterm
Full year

(85)
40
(115)
(52)
154
316
67
209
25
333
(118)
(255)
71
188
83
251
(14)
73
(2)
43
80
299
(101)
(100)
(12)
(20)

Variable rent ratio
86.0%
79.0%
91.0%
74.0%
89.0%
89.0%
93.0%
97.0%
98.0%
95.0%
95.0%
95.0%
87.0%

Variable rent
－
35
－
－
140
288
49
155
22
297
－
－
66
174
81
243
－
71
－
41
76
284
－
－
－
－

Note: This document is intended to serve as a press release to make available the information on the revision of operating forecast and forecast of dividend
for the fiscal year ended December 2021 (22nd period). This document should not be construed as an offer to sell or solicitation of an offer to purchaseany 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
Hotel AGOP
Hilton Tokyo Odaiba
Total
(*1)

(*2)

Midterm
Full year
Midterm
Full year

(238)
538
(205)
1,866

Variable rent ratio
97.0%－

Variable rent
－
522
437
2,114

AGOP (adjusted GOP) is the amount calculated by subtracting certain fees and other items from GOP or GOL.
GOP (gross operating profit) and GOL (gross operating loss) 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
Stating the rent for Sheraton Grand Hiroshima Hotel, the major facility of ACTIVE-INTER CITY HIROSHIMA.
Fixed rent and variable rent from tenants of office and commercial facility in ACTIVE-INTER CITY HIROSHIMA
are as follows.

Midterm
Full year(Unit: millions of yen)Fixed rent
Total rent
245
248
490
495

Variable rent25(2) Hotel Oriental Express Fukuoka Tenjin (formerly Ascent Fukuoka) and Oriental Hotel Universal City
(formerly Hotel Keihan Univesal City)
Hotel Oriental Express Fukuoka Tenjin and Oriental Hotel Univesal 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. The starting date to calculate the variable rent is January 1, 2022, and the variable rent is notexpected in the fiscal year ended December 2021.
< Hotel Oriental Express Fukuoka Tenjin)>
Lease term: June 18, 2021 to December 31, 2031
Total rent = Fixed rent + Variable rent
Fixed rent = ¥150 million (annual)
Fixed rent is waived from June 18, 2021 through June 30, 2022. The fixed rent to be recognized for the
fiscal year ended December 2021 is expected to be ¥72 million, which is 6.4 months’ worth of the average
fixed rent of ¥11 million per month, divided proportionally by the total fixed rent of the whole lease periodof ¥1,425 million.
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 (annual)
Fixed rent is waived from July 1, 2021 through June 30, 2022. The fixed rent to be recognized for the
fiscal year ended December 2021 is expected to be ¥158 million, which is 6 months’ worth of the average
fixed rent of ¥26 million per month, divided proportionally by the total fixed rent of the whole lease periodof ¥3,325 million.
Variable rent = [Hotel AGOP – AGOP base amount of ¥370 million] × Variable rent ratio (95.0%)(*3)

For Hotel Oriental Express Fukuoka Tenjin and Oriental Hotel Universal City, the variable rents from the previous
lessees before rebranding are not expected. The fixed rents before rebranding are recognized on conditions in prerebranding lease contracts and others.

Note: This document is intended to serve as a press release to make available the information on the revision of operating forecast and forecast of dividend
for the fiscal year ended December 2021 (22nd period). This document should not be construed as an offer to sell or solicitation of an offer to purchaseany 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(3) Income from management contracts (*4) and variable rent from other hotels with variable rent, etc.
(Unit: millions of yen)ibis Tokyo Shinjuku (*4) (*5)
ibis Styles Kyoto Station (*4)
ibis Styles Sapporo (*4)
Mercure Sapporo (*4)
Mercure Okinawa Naha (*4)
Mercure Yokosuka
the b suidobashi (*6)
the b ikebukuro (*6)
the b hachioji (*6)
the b hakata (*6)
Comfort Hotel Tokyo Higashi Nihombashi
Smile Hotel Nihombashi Mitsukoshimae
Chisun Hotel Kamata (*7)
Chisun Inn Kamata
Hilton Tokyo Bay
Hilton Nagoya
Total
(*4)

Midterm

Full year

3
－(*4)
－(*4)
－(*4)
－(*4)
109
－
117
－
－
－
－
－
0
Undisclosed (*8)
Undisclosed (*8)
401

33
－(*4)
－(*4)
－(*4)
－(*4)
210
－
300
－
－
－
－
15
2
Undisclosed (*8)
Undisclosed (*8)
967Management contract system is adopted. Management contract system refers to the operation of the hotel property
owned by JHR by entrusting the operation of the hotel to the trustee and incorporating the results of the operation
into JHR as income from real estate management. Each hotel’s GOP amount is recognized in operating revenues
as income from management contracts, and GOL amount is recognized in operating expense as the management
contract fees.
GOL recognized as cost for management contracts are as follows..

(Unit: millions of yen)
Midterm
ibis Tokyo Shinjuku (*5)
ibis Styles Kyoto Station
ibis Styles Sapporo
Mercure Sapporo
Mercure Okinawa Naha
(*5)
(*6)
(*7)
(*8)

Full year

－

－

(30)
(27)
(57)
(10)

(33)
(8)
(55)
(27)

Ibis Tokyo Shinjuku was sold on December 15, 2021. The above state the management cost arising before the dateof the sale.
Variable rent from the Ishin Group Hotels is the sum of fixed rent and variable rent from January 1, 2021 throughDecember 31, 2021 due to the revised fixed-term lease contracts concluded on October 30, 2020. Variable rent wasarised when GOP reaches certain levels.
Chisun Hotel Kamata was rebranded from Hotel Vista Kamata Tokyo with Solare Hotels and Resorts Co.,Ltd. as
the lessee on January 1, 2021.
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 revision of operating forecast and forecast of dividend
for the fiscal year ended December 2021 (22nd period). This document should not be construed as an offer to sell or solicitation of an offer to purchaseany 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 HMJ Group Hotels
Tenants of office and commercial facility(*9)
Other hotels with variable rent, etc. (16 hotels)
Total (30 hotels)
(*9)
(*10)

OperatingExpenses

Midterm

Full year

437

2,114

2

5

401
841

967
3,088

Variable rent from tenants of office and commercial facility in ACTIVE-INTER CITY HIROSHIMA is shown.
For details of variable rent, please refer to page 37, “3. Reference Information; B. Assets under management;(C) Other major assets under management; C. Overview of the hotel business; a. Rent structures of hotels withvariable rent, management contract or revenue sharing” of the “Financial Report for the Mid-year of Fiscal Year
Ended December 31, 2021 (January 1, 2021 - June 30, 2021)” dated August 25, 2021.

・ With respect to real estate leasing expenses, 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 ¥1,947 million will be recognized as expenses for fixed asset taxes, city planning taxes,
etc.
・ In general, fixed asset tax and city planning tax and other taxes and public dues on acquired assets are settledwith the previous owners at the time of acquisition, calculated on a pro rata basis of the holding period. For
JHR, such settlement amount is included in the acquisition price, and it will not be recognized as expenses
for the calculation period.
・ Capital expenditure is assumed to be ¥3,367 million (¥2,536 million for capital expenditure I, ¥830 million
for capital expenditure II). Capital expenditure III is not planned for the fiscal year ended December 2021.
(*) 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 ofthe hotels.

・ Depreciation is calculated using the straight-line method including the planned capital expenditures above,and is assumed to be ¥4,804 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.

・ ¥1,747 million is expected for borrowing-related costs, including interest expense, amortization for financing
fee and arrangement fee, and other non-operating expenses.
Non-operating
Expenses・ Expenses for issuance of new investment units and secondary offering are amortized over a period of three
years by the straight-line method.

Note: This document is intended to serve as a press release to make available the information on the revision of operating forecast and forecast of dividend
for the fiscal year ended December 2021 (22nd period). This document should not be construed as an offer to sell or solicitation of an offer to purchaseany 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

・ ¥1,500 million of investment corporation bonds that matured on December 17, 2021 were fully refinanced
by borrowings.
Interest・ In conjunction with the Sale, ¥4,000 million was prepaid on December 17, 2021. The balance of interestbearing Debt
bearing debt (sum of loans and investment corporation bonds) as of the end of December 2021 was ¥164,754
million.

・ Dividend per unit for the fiscal year ended December 2021 (22nd 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)

¥1,300 million¥262 million¥16 million¥56 million¥1,636 million
4,467,006 units¥366¥262 million (hereinafter called “50-year amortization amount of negative goodwill”) is scheduled to be paid out
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 for temporary
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 ended December 2021 (22nd period) is expected to be ¥9,976 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 revision of operating forecast and forecast of dividend
for the fiscal year ended December 2021 (22nd period). This document should not be construed as an offer to sell or solicitation of an offer to purchaseany 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 auditedor gone through other procedures. No guarantee is made as to the accuracy or completeness of the figures and information.
ADR and RevPAR are rounded off to the nearest yen. Sales and GOP are rounded off to the nearest millions of yen.
Occupancy rate and comparison with the previous period are rounded off to one decimal place.
<1> The HMJ Group Hotels
Fiscal year ended
December 2020

OccupancyRate

ADR (*1)

RevPAR(*2)

Sales(JPY1M)GOP(JPY1M)First half ofthe year
Second halfof the year
Full year
First half ofthe year
Second halfof the year
Full year
First half ofthe year
Second halfof the year
Full year
First half ofthe year
Second halfof the year
Full year
First half of theyear
Second halfof the year
Full year

(*1)
(*2)

Fiscal year ended December 2021

Results

Comparison
with previous
periodPrevious
forecast

First half of theyear (result)
Second half ofthe year(forecast)
Full year(forecast)

33.1%(52.2pt)

27.7%

27.7%

(5.4pt)

－pt

38.4%

(49.5pt)

40.0%

49.0%

10.6pt

9.0pt

35.8%
15,222(50.8pt)(13.4%)

33.9%
13,04838.5%
13,0482.7pt(14.3%)

4.5pt

16,814(14.4%)

15,325

14,636(13.0%)(4.5%)

16,081
5,045(13.7%)(66.4%)

14,402
3,618

14,0683,618(12.5%)(28.3%)(2.3%)

6,460(62.6%)

6,137

7,179

11.1%

17.0%

5,757
9,167

(64.3%)(61.9%)

4,888
8,313

5,413
8,313

(6.0%)(9.3%)

10.7%

11,978(55.9%)

10,86812,765

6.6%

17.5%

21,146(58.7%)

19,182

21,078(0.3%)

9.9%

(370)

(105.1%)

(136)

(136)

－%

－%

1,696

(82.8%)

1,070

2,186

28.9%

104.3%

1,326(92.3%)

934

2,050

54.7%

119.5%

Comparison
with previous
periodComparison withprevious forecast

－%

－%

－%

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

Note: This document is intended to serve as a press release to make available the information on the revision of operating forecast and forecast of dividend
for the fiscal year ended December 2021 (22nd period). This document should not be construed as an offer to sell or solicitation of an offer to purchaseany 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 24 Hotels with Variable Rent, etc. (*3)
Fiscal year ended
December 2020

Occupancy
Rate

ADR

RevPARSales(JPY1M)GOP(JPY1M)First half ofthe year
Second halfof the year
Full year
First half ofthe year
Second halfof the year
Full year
First half ofthe year
Second halfof the year
Full year
First half ofthe year
Second halfof the year
Full year
First half of theyear
Second halfof the year

Full year

Fiscal year ended December 2021

Results

Comparison
with previous
periodPrevious
forecast

First half of theyear (actual)
Second half ofthe year(forecast)
Full year(forecast)

34.0%(51.1pt)

30.6%

30.6%

(3.3pt)

－pt

40.8%

(46.1pt)

40.7%

49.6%

8.9pt

8.9pt

37.4%
13,362(48.6pt)(14.8%)

35.7%
10,84640.2%
10,8462.8pt(18.8%)

4.5pt－%

13,354(22.6%)

12,733

12,313(7.8%)(3.3%)

13,3574,536(19.0%)(66.0%)

11,931
3,320

11,7573,320(12.0%)(26.8%)(1.5%)－%

5,445(63.7%)

5,188

6,112

12.2%

17.8%

4,993
10,718(64.8%)(62.1%)

4,261
9,478

4,724
9,478

(5.4%)(11.6%)

10.8%－%

13,378(57.5%)

12,173

14,309

7.0%

17.5%

24,096(59.6%)

21,651

23,786(1.3%)

9.9%

(213)

(102.4%)

(65)

(65)

－%

－%

1,867

(84.2%)

1,111

2,502

34.0%

125.2%

1,654(92.1%)

1,046

2,437

47.4%

133.0%

Comparison
with previous
periodComparison withprevious forecast(*3) The 24 Hotels with Variable Rent, etc. represents 24 hotels including the HMJ Group Hotels, Accor Group Hotels(ibos Tokyo Shinjuku, ibis Styles Kyoto Station, ibis Styles Sapporo, Mercure Sapporo, Mercure Okinawa Naha, Mercure
Yokosuka), and the Ishin Group Hotels (the b suidobashi, the b ikebukuro, the b Hachioji, the b hakata).

Note: This document is intended to serve as a press release to make available the information on the revision of operating forecast and forecast of dividend
for the fiscal year ended December 2021 (22nd period). This document should not be construed as an offer to sell or solicitation of an offer to purchaseany investment units or other investment of JHR. Prospective investors are advised to make any investment decisions at their own risk and responsibility.

11