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.
January 10, 2020
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
Executive Director
Head of Planning Group, Operations Division
TEL: +81-3-6422-0530
Notice Concerning Revision of Operating Forecast for the Fiscal Year Ended December 2019 (20th Period),
and Operating Forecast and Forecast of Dividend for the Fiscal Year Ending December 2020 (21st Period)
Japan Hotel REIT Investment Corporation (hereinafter called “JHR”) informs you of the revision of the operating forecast
for the full fiscal year ended December 2019 (January 1, 2019 through December 31, 2019), which was announced in the“Midterm Financial Report for the Fiscal Year Ending December 31, 2019 (January 1, 2019 – June 30, 2019),” dated
August 22, 2019, and newly informs you of the operating forecast and forecast of dividend for the fiscal year ending
December 2020 (January 1, 2020 through December 31, 2020) as follows.

1. Revision of the operating forecast for the full fiscal year ended December 2019
(January 1, 2019 through December 31, 2019)

Previous forecast(A)
Revised forecast(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

Dividend per unit
resulting fromexcess of
earnings
JPY

28,666

17,227

15,274

15,273

3,686

－

JPY1M

JPY1M

JPY1M

JPY1M

JPY

JPY

28,274

17,16815,274

15,273

3,686

－

JPY1M

JPY1M

JPY1M

JPY1M

JPY

JPY

(391)

(58)

0

0

－

－

%

%

%

%

%

%

(1.4)

(0.3)

0.0

0.0

－

－

Forecast of net income per unit for the full fiscal year: ¥3,444(Calculated based on the average number of investment units during the period (4,434,849 units))
Dividend per unit is calculated based on the number of investment units issued as of today: 4,462,347 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 ¥1,178 million.
For the assumptions of the operating forecast and dividend forecast above, please refer to “<Reference Information 1>
Assumptions of the operating forecast for the full fiscal year ended December 2019 (20th 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.

Note: This document is intended to serve as a press release to make available the information on the revision of operating forecast for the fiscal year ended
December 2019 (20th period) and operating forecast and forecast of dividend for the fiscal year ending December 2020 (21th 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.

Operating forecast and forecast of dividend for the full fiscal year ending December 2020
(January 1, 2020 through December 31, 2020)

Fiscal year ending
December 2020
Midterm
Fiscal year ending
December 2020
Full year(Reference)
(*1)
(*2)
(*3)

3.

Net income

Dividend per unit
(Excess ofearnings
exclusive)

Dividend per unit
resulting fromexcess of
earnings

JPY1M

JPY1M

JPY

JPY

6,972

6,972

－

－

JPY1M

JPY

JPY

16,2383,750－

Operatingrevenue

OperatingincomeOrdinary
income

JPY1M

JPY1M

13,539

7,895

JPY1M

JPY1M

JPY1M

29,971

18,12816,239Forecast of net income per unit for the full fiscal year: ¥3,638(Calculated based on the forecast of the average number of investment units during the period (4,462,347 units))
The number of investment units issued as of today is 4,462,347 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 ¥496 million.
For the assumptions of the operating forecast and dividend forecast above, please refer to “<Reference Information 2>
Assumptions of the operating forecast for the full fiscal year ending December 2020 (21st period)” below.

Rationale for the revisions of the operating forecast for the full fiscal year ended December 2019 (January 1, 2019
through December 31, 2019)
While the lodging demand was stable due to the increase in number of inbound visitors, etc., some hotels owned by
JHR were affected by new supply, a decrease in the number of inbound visitors from South Korea, and a series ofnatural disasters. Therefore, variable rent and income from management contract are expected to decrease. As aresult, JHR expects a decrease in operating revenue by ¥391 million compared to the previous forecast.
On the other hand, JHR expects a decrease in operating expenses by ¥332 million and financial costs, etc. by ¥58
million as a result of reviewing various expenses related to properties and other operating expenses, etc. As a result,the net income for the fiscal year ended December 2019 (20th period) remains unchanged.
For the detailed information of the operating result for the hotels with variable rent, please refer to “<Reference
Information 3> Hotel operation indexes, sales and GOP (*)” below.
(*)

GOP is Gross Operating Profit, which is the remainder after operating expenses are deducted from total sales. Operating
expenses are expenses such as personnel costs and general and administrative expenses, etc., incurred from hotel
operation. 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 for the fiscal year ended
December 2019 (20th period) and operating forecast and forecast of dividend for the fiscal year ending December 2020 (21th 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.

Highlights of the operating forecast and forecast of dividend(1) Comparison and the major factors causing the variance between the operating forecast and forecast of dividend(previous forecast) for the full fiscal year ended December 2019, which was released in the “Midterm Financial
Report for the Fiscal Year Ending December 31, 2019 (January 1, 2019 – June 30, 2019)” dated August 22, 2019,
and the operating forecast and forecast of dividend for the full fiscal year ended December 2019 announced thistime
(Unit: millions of yen)

FY12/2019(20th Period)
Previous
Forecast This
Forecast
Time
(*1)
(A)
(B)
Properties

43-

Acquisition Price

374,508

374,508-

Operating Revenue

28,66628,274(391)(1.4%)

Real Estate Operating
Revenue

28,66628,274(391)(1.4%)(2)(0.0%)

Gain on Sale ofReal Estate Properties
NOI (*3)

(*2)

(*3)

Composition

Composition

59.7%

17,102 60.5% 17,099

40.3%

11,563 39.5% 11,174(389)

1. Decrease in variable rent, etc. from The 21 Hotels with Variable Rent,
etc. (*2) and Hotel Oriental Express Osaka Shinsaibashi by JPY581 MM
2. Increase in variable rent from Oriental Hotel Fukuoka Hakata Station(3.4%)by JPY28 MM
3. Increase in rent from other hotels with revenue sharing, etc. by
JPY164 MM

-

-

-

-

24,298
6.5%

24,081
6.4%(216)(0.1%)(0.9%)NOI after Depreciation(*3)

19,411

19,306(105)(0.5%)NOI Yield after
Depreciation

5.2%

5.2%

(0.0%)

Operating Income

17,227

17,168(58)(0.3%)

Ordinary Income

15,274

15,2740

0.0%

Net Income

15,273

15,2730

0.0%

Reserve for Temporary
Difference Adjustments(Negative Goodwill)

1,177

1,178

1

0.1% difference adjustments

16,44816,448-- Correspondence to loss on retirement of noncurrent assets:JPY248 MM

4,462,347

4,462,347-- Fukuoka Hakata Station: JPY357 MM

3,686

3,686

-

-

NOI Yield(*1)

Factors Causing Variance%

43

Variable Rent

Dividend(B)-(A)

No. of Properties

Fixed Rent, etc.

ProfitandLossComparison
with thePrevious
Forecast

Total Dividends
Number of Units Issued(Unit)
Dividend per Unit (JPY)

Amount to be reversed from reserve for temporary
50-year amortization amount of negative goodwill: JPY262 MM
Correspondence to large-scale renovation works at Oriental Hotel
Correspondence to dilution: JPY310 MM

Stating the operating forecast and forecast of dividend for the full fiscal year ended December 2019, which was released in the“Midterm Financial Report for the Fiscal Year Ending December 31, 2019 (January 1, 2019 – June 30, 2019)” dated August22, 2019.
The 21 Hotels with Variable Rent, etc. represent the 21 hotels comprising the Eleven HMJ Hotels plus ibis Tokyo Shinjuku,
ibis Styles Kyoto Station, ibis Styles Sapporo, Mercure Sapporo, Mercure Okinawa Naha, Mercure Yokosuka, the b ikebukuro,
the b hachioji, the b hakata and the b suidobashi. The Eleven HMJ Hotels are Kobe Meriken Park Oriental Hotel, Oriental
Hotel tokyo bay, Namba Oriental Hotel, Hotel Nikko Alivila, and Oriental Hotel Hiroshima (hereinafter called “the Five HMJ
Hotels”), plus Okinawa Marriott Resort & Spa, Sheraton Grand Hiroshima Hotel (ACTIVE-INTER CITY HIROSHIMA),
Holiday Inn Osaka Namba, Hilton Tokyo Narita Airport, International Garden Hotel Narita, and Hotel Nikko Nara. With
regard to Oriental Hotel Fukuoka Hakata Station (formerly Hotel Centraza Hakata), due to large-scale renovation works
causing the suspension of hotel operation (hereinafter called the “Renovation”) were implemented from October 1, 2018 toApril 8, 2019, figures for Oriental Hotel Fukuoka Hakata Station are not included in the calculation of the 21 Hotels with
Variable Rent, etc. as hotel operation was suspended during the Renovation. Moreover, the 12 hotels comprising the Eleven
HMJ Hotels plus Oriental Hotel Fukuoka Hakata Station are hereinafter called the “Twelve HMJ Hotels.” 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 priceNote: This document is intended to serve as a press release to make available the information on the revision of operating forecast for the fiscal year ended
December 2019 (20th period) and operating forecast and forecast of dividend for the fiscal year ending December 2020 (21th 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(2) Comparison and the major factors causing the variance between the operating result and dividend (actual) for thefull fiscal year ended December 2018 and the operating forecast and forecast of dividend for the full fiscal year
ended December 2019
(Unit: millions of yen)

Properties

Profitand
Loss
Statement

(*3)

(*4)

Forecast
This Time

(A)

(B)

(B)-(A)%

Three
Properties
Properties
Acquired in
Sold in2019 (*1)
2018 (*2)

Oriental
Hotel
Existing
Fukuoka Properties
Hakata(*4)
Station (*3)

41

43

2

2

-

-

309,370

374,508

65,13821.1%

65,138--Operating Revenue

28,25328,274

20

0.1%

2,374

(2,214)

141

(280)

Real Estate Operating
Revenue

26,31828,274

1,955

7.4%

2,374

(279)

141

(280)

Fixed Rent, etc.

14,78817,099

2,310

15.6%

2,367

(199)

0

142

Composition

56.2%

60.5%

Variable Rent

11,529

11,174Composition

43.8%

39.5%

Gain on Sale ofReal Estate
Properties

1,934

-

(3.1%)

6

(79)

141

(1,934)--(1,934)

0

-

8.9%

2,367

(251)

141

(280)

7.4%

2,171

(216)

(192)

(430)

NOI

22,10424,081

1,977

7.1%

6.4%

(0.7%)NOI after Depreciation

17,974

19,306

1,331

NOI Yield after
Depreciation

5.8%

5.2%

(0.7%)

Operating Income

17,993

17,168(824)(4.6%)

Ordinary Income

16,211

15,274(936)(5.8%)Net Income

16,21015,273(936)(5.8%)

563

1,178

614 109.1% difference adjustments

Reserve for Special Advanced
Depreciation(1,174)-

1,174

Total Dividends

15,602

16,448846

4,010,847 4,462,347

451,500

Factors Causing Variance

1. Decrease in variable rent, etc. from the 21 Hotels
with Variable Rent, etc. by JPY550 MM(423) 2. Increase in rent from other hotels with revenue
sharing, etc. by JPY127 MM(355)

NOI Yield

Dividend per Unit (JPY)(*2)

ActualComparison
with thePrevious Period

Acquisition Price

Number of Units Issued(Unit)(*1)

2019

No. of Properties

Reserve for Temporary
Difference Adjustments(Negative Goodwill)

Dividend

2018

Amount to be reversed from reserve for temporary

3,890

3,686

(204)

2018:
50-year amortization amount of negative goodwill: JPY262 MM
Correspondence to loss on retirement of noncurrent assets:JPY35 MM
Correspondence to large-scale renovation works at Oriental Hotel Fukuoka Hakata Station: JPY265 MM
2019:
5.4%
50-year amortization amount of negative goodwill: JPY262 MM
Correspondence to loss on retirement of noncurrent assets:JPY248 MM
11.3%
Correspondence to large-scale renovation works at Oriental Hotel Fukuoka Hakata Station: JPY357 MM
Correspondence to dilution: JPY310 MM(5.2%)

Stating the amount of the impact by Hotel Oriental Express Osaka Shinsaibashi and Hilton Tokyo Odaiba, which were acquired
during the fiscal year ended December 2019. The same shall apply hereinafter.
Stating the amount of the impact of R&B Hotel Higashi-nihonbashi, the b akasaka-mitsuke and the b ochanomizu, which weresold during the fiscal year ended December 2018. The same shall apply hereinafter.
Large-scale renovation works causing the suspension of hotel operation were implemented at Oriental Hotel Fukuoka Hakata
Station from October 1, 2018 to April 8, 2019. Stating the amount of impact of the Renovation. In accordance with theRenovation, ¥202 million of loss on retirement of noncurrent assets was recorded in the fiscal year ended December 2019 (20thPeriod). However, the amount recognized as the 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 same shallapply hereinafter.
“The existing properties” above refers to 40 properties which excludes Hotel Oriental Express Osaka Shinsaibashi, Hilton
Tokyo Odaiba, both bought during fiscal year ended December 2019, and Oriental Hotel Fukuoka Hakata Station from 43
properties owned by JHR as of today. 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 for the fiscal year ended
December 2019 (20th period) and operating forecast and forecast of dividend for the fiscal year ending December 2020 (21th 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(3) Comparison and the major factors causing the variance between the operating forecast and forecast of dividend
for the full fiscal year ended December 2019 and the operating forecast and forecast of dividend for the full fiscal
year ending December 2020
(Unit: millions of yen)

Properties

Profitand
Loss
Statement

2019

2020

Forecast
This Time

Forecast
This Time

(A)

(B)

Comparison with
the Previous
Period(B)-(A)

%

(*2)
(*3)

Oriental
Hotel
Fukuoka
HakataStationExisting
Properties-

No. of Properties

43

43

-

-

-

Acquisition Price

374,508

374,508

-

-

-

-

Operating Revenue

28,27429,971

1,696

6.0%

951

489

255

Real Estate
Operating Revenue

28,27429,971

1,696

6.0%

951

489

255

Fixed Rent, etc.

17,09917,987

887

5.2%

842

25

19

Composition

60.5%

60.0%

809

11,174

11,984Composition

39.5%

40.0%

108

Gain on Sale ofReal Estate
Properties

-

-

-

-

-

-

-

4.9%

670

481

39

7.2%

464

(*2)

NOI

24,081

25,273

1,191

NOI Yield

6.4%

6.7%

0.3%

NOI after Depreciation

19,306

20,392

1,085

NOI Yield after
Depreciation

5.2%

5.4%

0.3%

Factors Causing Variance

1. Increase in variable rent, etc. from the 20 Hotels with Variable
Rent, etc. (*1) by JPY571 MM
2. Decrease in variable rent from Namba Oriental Hotel by
235 JPY320 MM
3. Decease in rent from other hotels with revenue sharing, etc. by
JPY14 MM

Variable Rent

(*3)
530

5.6%

628

(73)

(*3)

Operating Income

17,16818,128959

5.6%

Ordinary Income

15,274

16,239964

6.3%

Net Income

15,273

16,238964

6.3%

Reserve for Temporary
Difference Adjustments(Negative Goodwill)

1,178

496

(681)

(57.8%)

Total Dividends

16,44816,733285

Number of Units Issued(Unit)

4,462,347

4,462,347-

Dividend per Unit (JPY)

3,686

3,750

64

Amount to be reversed from reserve for temporary difference adjustments
2019:50-year amortization amount of negative goodwill: JPY262 MM
Correspondence to loss on retirement of noncurrent assets: JPY248 MM
Correspondence to large-scale renovation works at Oriental Hotel Fukuoka Hakata Station: JPY357 MM
1.7% Correspondence to dilition: JPY310 MM

Dividend(*1)

Properties
Acquired in
2019

2020:
- 50-year amortization amount of negative goodwill: JPY262 MM

Correspondence to loss on retirement of noncurrent assets:JPY18 MM
Correspondence to large-scale renovation works at Hilton Tokyo Odaiba: JPY44 MM
1.7% Correspondence to large-scale renovation works at Namba Oriental Hotel: JPY172 MM

Namba Oriental Hotel is scheduled to implement large-scale renovation with the suspension of hotel operation from
November 2020 to March 2021. Figures for Namba Oriental Hotel are not included in the calculation of the 21 Hotels
with Variable Rent, etc. as hotel operation was suspended during the planned renovation. The 20 Hotels with Variable
Rent, etc. represent 20 hotels, excluding Namba Oriental Hotel from The 21 Hotels with Variable Rent, etc. The same
shall apply hereinafter.
Taking into consideration the negative impact on variable rent (negative ¥44 million) due to the suspension of part ofroom sales associated with the implementation of large-scale renovation works scheduled from September to December
2020 at Hilton Tokyo Odaiba.
In accordance with the renovation at Oriental Hotel Fukuoka Hakata Station, ¥202 million of loss on retirement of
noncurrent assets was recorded in the fiscal year ended December 2019 (20th Period).

(Note)
The above is the forecasts 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: http://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 for the fiscal year ended
December 2019 (20th period) and operating forecast and forecast of dividend for the fiscal year ending December 2020 (21th 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<Reference Information 1>
Assumptions of the operating forecast for the full fiscal year ended December 2019 (20th period)
Item
Calculation
PeriodAssumptions
・ Full fiscal year ended December 2019 (20th Period): January 1, 2019 through December 31, 2019 (365days)

Assets under ・ 43 properties owned by JHR as of the end of December 2019 are assumed.
Management
・ Operating revenue is calculated based on the lease and other contracts which were effective during the
fiscal year ended December 2019 and in consideration of competitiveness of hotels, market environmentand other factors. If there are lease contracts with regard to facilities other than hotels, such as retailfacilities and offices, operating revenue calculated on the said lease contracts is included.
・ Rents, etc. of the main hotels are calculated based on the following assumptions.
(1) The 21 Hotels with Variable Rent, etc.
①The Twelve HMJ Hotels
The assumptions of the fixed rent and variable rent for the Twelve HMJ hotels are as follows.
Total rent = Fixed rent + Variable rent
Variable rent = (Total GOP of the hotels – GOP base amount) × Variable rent ratio (%)(Unit: millions of yen)
Total GOP
GOP base Variableof theamount rent ratio
hotel(s)The Five HMJ Hotels

Operating
Revenue

Okinawa Marriott
Resort & Spa
Sheraton Grand
Hiroshima Hotel (*1)
Oriental Hotel
Fukuoka Hakata
Station (*2)
Holiday Inn
Osaka Namba
Hilton Tokyo Narita
AirportInternational Garden
Hotel Narita
Hotel Nikko Nara
Sub Total
ACTIVE-INTER
CITY HIROSHIMA(Office and commercial
tenants)

Total
(*1)
(*2)

Variable
rent

Fixed
rent

Total
rent

1,360
3,767
25
401
232
519
-

1,610
3,221
274
550
174
348
199

2,970
6,988
300
951
406
867
199

330

400

730

227
396
185
474
141
262
74
203
2,247
6,356

288
576
222
444
168
336
210
420
3,147
6,295

515
972
407
918
309
598
284
623
5,394
12,651

6

230

236

Midterm
Full year
Midterm
Full year
Midterm
Full year
Midterm

3,276
7,783
378
1,146
515
1,097
131

1,675
3,351
350
700
234
468
212

Full year

792

425

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

570
1,078
489
1,098
323
627
316
691
6,002
14,317

325
650
275
550
180
360
235
470
－
－

Midterm－－

Full year
Midterm
Full year

－

－

11

461

472

－
－

－
－

2,253
6,368

3,377
6,756

5,631
13,124

85.0%
90.0%
82.5%
90.0%
92.5%
86.5%
98.0%
91.5%
－

－

－

Stating the rent for Sheraton Grand Hiroshima Hotel, the major facility of ACTIVE-INTER CITY HIROSHIMA.
Due to the impact of the suspension of hotel operation due to the Renovation implemented in the first half of the
fiscal year ended December 2019 (20th period), GOP of the hotel for the first half did not exceed GOP baseamount. Therefore, variable rent for the midterm is not recognized.

Note: This document is intended to serve as a press release to make available the information on the revision of operating forecast for the fiscal year ended
December 2019 (20th period) and operating forecast and forecast of dividend for the fiscal year ending December 2020 (21th 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

Assumptions② Income from management contracts (*3) and variable rent from hotels other than the Twelve HMJ Hotels

ibis Tokyo Shinjuku
ibis Styles Kyoto Station
ibis Styles Sapporo
Mercure Sapporo
Mercure Okinawa Naha
Mercure Yokosuka
the b suidobashi
the b ikebukuro
the b hachioji
the b hakata
Total
(*3)

Midterm(Unit: millions of yen)
Full year

246
213
256
282
170
178
9
70
32
75
1,537

537
417
598
614
346
308
19
132
63
141
3,179

For income from management contracts, it is assumed that each hotel’s GOP amount is recognized as income frommanagement contracts and the management contract fees to be paid by JHR are recognized as an operating
expense.

(2) The Two New HMJ Hotels (Acquired assets) (*1)①Hotel Oriental Express Osaka Shinsaibashi
The assumptions of the fixed rent and variable rent are as follows.
Total rent = Fixed rent + Variable rent
Variable rent = [Total GOP of the hotels – GOP base amount] × Variable rent ratio (%)
Total GOP GOP base Variableof the hotel amount rent ratio
Hotel Oriental Express
Osaka Shinsaibashi
(*2)
(*1)
(*2)

Midterm－－－

Full year

71

64

91.0%

(Unit: millions of yen)
Variable Fixed
Total
rent
rent
rent
－
47
47
6

102

109

The Two New HMJ Hotels (Acquired assets) are Hotel Oriental Express Osaka Shinsaibashi, which was
acquired on February 1, 2019, and Hilton Tokyo Odaiba, which was acquired on April 8, 2019. The same shallapply hereinafter.
Hotel Oriental Express Osaka Shinsaibashi was acquired on February 1, 2019, and has a lease contract which
adopts fixed rent until June 30, 2019, and fixed rent as well as variable rent which is linked to GOP of the hotel
from July 1, 2019. GOP of the hotel for the full year is the GOP of the hotel from July 2019 through December
2019. The fixed rent for the full year is the assumed figures for 334 days from February 1, 2019 to December
31, 2019. Base GOP amount will be ¥128 million and annual fixed rent will be ¥110 million starting from thefiscal year ending December 2020.

② Hilton Tokyo Odaiba
The assumptions of the fixed rent and variable rent for Hilton Tokyo Odaiba are as follows. Variable rentfor Hilton Tokyo Odaiba for the fiscal year ending December 2019 (20th period) is not expected.
Total rent = Fixed rent + Variable rent
Variable rent = (AGOP (adjusted GOP) of the hotels (*3) – AGOP base amount) × Variable rent ratio (%)(Unit: millions of yen)
AGOP of AGOP
Fixed
Variable Variable
Total
the hotel
base
Rent
rent ratio
rent
rent
(*4)
amount
(*4)
526
817
－
714
714
Midterm
30.0%
Hilton Tokyo Odaiba
1,986
2,450
2,264
2,264
－
Full year
Note: This document is intended to serve as a press release to make available the information on the revision of operating forecast for the fiscal year ended
December 2019 (20th period) and operating forecast and forecast of dividend for the fiscal year ending December 2020 (21th 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
(*3)
(*4)

AGOP (adjusted GOP) is the amount calculated by subtracting certain fees and other items from GOP. The same
shall apply hereinafter.
As Hilton Tokyo Odaiba was acquired on April 8, 2019, AGOP of the hotel for the midterm and the full year is
the AGOP of the hotel from April through June, 2019 and from April through December 2019, respectively. The
fixed rent for the full year is the assumed figures for 268 days from April 8, 2019 through December 31, 2019.
AGOP base amount after the fiscal year ending December 2020 through December 2021 will be ¥2,970 million,
and the annual fixed rent will be ¥3,100 million.

(3) Other hotels subject to variable rent
Variable rent from other hotels subject to variable rent
(Unit: millions of yen)
Midterm
Full year
16
16
Comfort Hotel Tokyo Higashi Nihombashi
20
20
Smile Hotel Nihombashi Mitsukoshimae
20－
Hotel Vista Kamata Tokyo
41
82
Chisun Inn Kamata
Hotel Keihan Universal City
Undisclosed (*) Undisclosed (*)
114
114
Sotetsu Fresa Inn Shimbashi-Karasumoriguchi
Hilton Tokyo Bay
Undisclosed (*) Undisclosed (*)
Hilton Nagoya
Undisclosed (*) Undisclosed (*)
815
1,619
Total of 8 hotels(*)

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

･ The following is the breakdown of variable rent and income from management contracts (*1)
<Breakdown of variable rent, etc. for the fiscal year ending December 2019 (20th period)>(Unit: millions of yen)
Midterm
Full year
2,253
6,368
The Twelve HMJ Hotels (*2)
The 21 Hotels with Variable Rent, etc. excluding the Twelve HMJ Hotels

1,537
3,179
6
－
1,619
815
4,606
11,174For details of contracts for variable rent and income from management contracts, please refer to page 48, “3.
Reference Information; B Assets under management; (C) Other major assets under management; C. Overview
of the hotel business; a. Rent structures of hotels with variable rent, management contract or revenue sharing”
of the “Midterm Financial Report for the Fiscal Year Ending December 31, 2019 (January 1, 2019–June 30,2019)” dated August 22, 2019.
This figure includes revenue-linked rent of office and commercial tenants at ACTIVE-INTER CITYHIROSHIMA.

The Two New HMJ Hotels (Acquired assets)
Other hotels with variable rent, etc. (8 hotels)
Total (32 hotels)
(*1)

(*2)

OperatingExpenses

・ 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
the calculation.
・ It is assumed that the ¥1,658 million will be recognized as expenses for fixed asset taxes, city planningtaxes, etc.
・ In general, fixed asset tax and city planning tax and other taxes and public dues on acquired assets aresettled with 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 ¥6,695 million (¥3,661 million for capital expenditure I, ¥958
million for capital expenditure II, and ¥2,075 million for capital expenditure III), and of those capital
expenditure, ¥3,147 million for expenditure (¥1,456 million for capital expenditure I, ¥1,690 million for
capital expenditure III) related to the Renovation at Oriental Hotel Fukuoka Hakata Station) for the fiscal
year ended December 2019 (20th period) is assumed.

Note: This document is intended to serve as a press release to make available the information on the revision of operating forecast for the fiscal year ended
December 2019 (20th period) and operating forecast and forecast of dividend for the fiscal year ending December 2020 (21th 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(*)

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 ¥4,524 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 fromthe forecast amount for various reasons, such as; (1) Emergency repair expenses may be necessary due todamage to buildings from unexpected causes; (2) The amount of repair expenses generally tends to increasein difference over time; and (3) Repair expenses are not required on a regular basis.

・ ¥1,915 million is expected for borrowing-related costs, including interest expense, amortization for
Non-operating
financing fee and arrangement fee, and other non-operating expenses.
Expenses・ Expenses for issuance of new investment units and secondary offering are amortized over a period of three
years by the straight-line method.
Interest・ The balance of interest-bearing debt (sum of loans and investment corporation bonds) as of the end ofbearing Debt
December 2019 was ¥168,754 million.
・ Dividend per unit for the fiscal year ended December 2019 (20th period) is calculated based on thefollowing assumptions.
Net income
Reversal of reserve for temporary difference adjustment(negative goodwill)
50-year amortization amount of negative goodwill (*1)¥262 million¥248 million

Loss on retirement of noncurrent assets (*2)
Correspondence to large-scale renovation works (*3)¥357 million

Adjustment for dilution (*4)¥310 million

Distributable amount¥16,452 million

Total number of investment units issued

4,462,347 units

Dividend per unit

Dividend per
Unit¥15,273 million

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

(*4)

¥3,686¥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.
Large-scale renovation works causing the suspension of hotel operation were implemented at the former Hotel
Centraza Hakata from October 1, 2018, and the hotel opened as Oriental Hotel Fukuoka Hakata Station on April
9, 2019. Taking into consideration the effect on dividend by the suspension of hotel operation due to theRenovation, reserve for temporary difference adjustment (negative goodwill) will be appropriated.
We plan to avoid the impact of the dilution of investment units on dividend per unit for the fiscal year ending
December 2019 caused by not owning The Two New HMJ Hotels (Acquired assets) for the full fiscal year
ended December 2019 and by the issuance of new investment units through appropriation of the reserve fortemporary difference adjustment (negative goodwill).

・ 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 environmentof hotel 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 2019 (20th period) is expected to be ¥10,615 million.
Note: This document is intended to serve as a press release to make available the information on the revision of operating forecast for the fiscal year ended
December 2019 (20th period) and operating forecast and forecast of dividend for the fiscal year ending December 2020 (21th 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

Item

Assumptions

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, andregulations of the Investment Trusts Association, Japan (the “ITAJ”) 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 for the fiscal year ended
December 2019 (20th period) and operating forecast and forecast of dividend for the fiscal year ending December 2020 (21th 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<Reference Information 2>
Assumptions of the operating forecast for the full fiscal year ending December 2020 (21st period)
Item
Calculation
PeriodAssumptions
・ Full fiscal year ending December 2020 (21st Period): January 1, 2020 through December 31, 2020 (366days)

・ The 43 properties owned by JHR as of today are assumed.
Assets under ・ It is assumed that there will be no change (acquisition of new property or disposition of the Existing
Properties, etc.) in assets under management other than the above through the end of the fiscal year ending
Management
December 2020 (21st period). However, the actual results may fluctuate depending on the changes in assets
under management that may take place.
・ Operating revenue is calculated based on the conditions of the lease and other contracts effective as oftoday and in consideration of competitiveness of hotels, market environment and other factors. If there arelease contracts with regard to facilities other than hotels, such as retail facilities and offices, operating
revenue calculated based on the said lease contracts is included.
・ Rents, etc. of the main hotels are calculated based on the following assumptions.

Operating
Revenue(1) The 21 Hotels with Variable Rent, etc.
①The Twelve HMJ Hotels
The assumptions of the fixed rent and variable rent for the Twelve HMJ hotels are as follows.
Total rent = Fixed rent + Variable rent
Variable rent = (Total GOP of the hotels – GOP base amount) × Variable rent ratio (%)(Unit: millions of yen)
Total GOP
GOP base Variable Variable Fixed
Totalof theamount rent ratio
rent
rent
rent
hotel(s)
1,132
3,007
1,675
1,610
2,743
Midterm
The Five HMJ Hotels
85.0%
7,546
3,351
3,566
3,221
6,787
(*1)
Full year
384
350
30
274
305
Midterm
Okinawa Marriott
90.0%
Resort & Spa
1,354
700
589
550
1,139
Full year
499
234
218
174
392
Midterm
Sheraton Grand
82.5%
Hiroshima Hotel (*2)
1,093
468
515
348
863
Full year
602
221
373
212
586
Oriental Hotel
Midterm
98.0%
Fukuoka Hakata
1,253
442
795
425
1,220
Full year
Station (*3)
512
325
173
288
461
Midterm
Holiday Inn
92.5%
Osaka Namba
1,053
650
373
576
949
Full year
437
275
140
222
362
Midterm
Hilton Tokyo Narita
86.5%
Airport
1,122
550
495
444
939
Full year
314
180
131
168
299
Midterm
International Garden
98.0%
Hotel Narita
675
360
309
336
645
Full year
307
235
66
210
276
Midterm
91.5%
Hotel Nikko Nara
701
470
211
420
631
Full year
6,065
2,267
3,160
5,427
Midterm－
Sub Total－
14,801
6,856
6,320
13,176
Full year－
ACTIVE-INTER
5
233
238
Midterm－－
CITY HIROSHIMA－(Office and commercial
10
467
478
Full year－－
tenants)

Total

Midterm
Full year

－
－

－
－

－

2,272

3,393

5,666

6,867

6,787

13,655

Note: This document is intended to serve as a press release to make available the information on the revision of operating forecast for the fiscal year ended
December 2019 (20th period) and operating forecast and forecast of dividend for the fiscal year ending December 2020 (21th 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

Item

Assumptions
(*1)

(*2)
(*3)

Of The HMJ5 Hotels, Namba Oriental Hotel is scheduled to implement a large-scale renovation with suspensionof hotel operation from November 2020 to March 2021. Taking into consideration the effect on dividend by thesuspension of hotel operation due to the renovation, reserve for temporary difference adjustment (negative
goodwill) will be appropriated.
Stating the rent for Sheraton Grand Hiroshima Hotel, the major facility of ACTIVE-INTER CITY HIROSHIMA.
The fixed-term lease agreement for Oriental Hotel Fukuoka Hakata Station were renewed dated on December 20,
2019, and the amount of fixed rent, GOP base amount and variable rent ratio were changed from January 1, 2020.

② Income from management contracts (*4) and variable rent from hotels other than the Twelve HMJ Hotels
Midterm
248
179
268
288
179
178
19
65
26
66
1,520

ibis Tokyo Shinjuku
ibis Styles Kyoto Station
ibis Styles Sapporo
Mercure Sapporo
Mercure Okinawa Naha
Mercure Yokosuka
the b suidobashi
the b ikebukuro
the b hachioji
the b hakata
Total
(*4)

Operating
Revenue(Unit: millions of yen)
Full year
547
364
666
688
374
298
70
179
67
138
3,395

For income from management contracts, it is assumed that each hotel’s GOP amount is recognized as income
from management contracts and the management contract fees to be paid by JHR are recognized as an operating
expense.

(2) The Two New HMJ Hotels (Acquired assets)① Hotel Oriental Express Osaka Shinsaibashi
The assumptions of the fixed rent and variable rent for Oriental Express Osaka Shinsaibashi are as
follows.
Total rent = Fixed rent + Variable rent
Variable rent = (Total GOP of the hotels – GOP base amount) × Variable rent ratio (%)
Total GOP GOP base Variableof the hotel amount rent ratio
Hotel Oriental Express
Osaka Shinsaibashi

Midterm
Full year

72
151

64
128

91.0%

(Unit: millions of yen)
Variable Fixed
Total
rent
rent
rent
8
21

55
110

63
131

② Hilton Tokyo Odaiba
The assumptions of the fixed rent and variable rent for Hilton Tokyo Odaiba are as follows.
Total rent = Fixed rent + Variable rent
Variable rent = (AGOP (adjusted GOP) of the hotels (*1) – AGOP base amount) × Variable rent ratio (%)

Hilton Tokyo Odaiba(*2)

Midterm
Full year

AGOP ofthe hotel

AGOP
base
amountVariablerent ratio

1,163
3,283

1,485
2,970

30.0%

(Unit: millions of yen)
Fixed
Variable
Total
Rent
rent
rent
(*2)
94

1,549
3,100

1,549
3,194

Note: This document is intended to serve as a press release to make available the information on the revision of operating forecast for the fiscal year ended
December 2019 (20th period) and operating forecast and forecast of dividend for the fiscal year ending December 2020 (21th 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.

12

Item

Assumptions
(*1)
(*2)

AGOP (adjusted GOP) is the amount calculated by subtracting certain fees and other items from GOP. The same
shall apply hereinafter.
Hilton Tokyo Odaiba is scheduled to implement a large-scale renovation with suspension of part of room sales
from September 2020 to December 2020.

(3) Other hotels subject to variable rent
Variable rent from other hotels subject to variable rent
Comfort Hotel Tokyo Higashi Nihombashi
Smile Hotel Nihombashi Mitsukoshimae
Hotel Vista Kamata Tokyo
Chisun Inn Kamata
Hotel Keihan Universal City
Sotetsu Fresa Inn Shimbashi-Karasumoriguchi
Hilton Tokyo Bay
Hilton Nagoya
Total of 8 hotels

Operating
Revenue(*)

Midterm(Unit: millions of yen)
Full year

1
17
－
42

1
17
23
85

Undisclosed (*)

Undisclosed (*)

89

89

Undisclosed (*)
Undisclosed (*)

Undisclosed (*)
Undisclosed (*)

756

1,605

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

･ The following is the breakdown of variable rent and income from management contracts (*1)
<Breakdown of variable rent, etc. for the fiscal year ending December 2020 (21st period)>(Unit: millions of yen)
Midterm
Full year
6,867
2,272
The Twelve HMJ Hotels (*)
The 21 Hotels with Variable Rent, etc. excluding the Twelve HMJ Hotels

The Two New HMJ Hotels (Acquired assets)
Other hotels with variable rent, etc. (8 hotels)
Total (32 hotels)(*)

OperatingExpenses

1,520
8
756
4,557

3,395
115
1,605
11,984This figure includes revenue-linked rent of office and commercial tenants at ACTIVE-INTER CITYHIROSHIMA.

・ 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
the calculation.
・ It is assumed that the ¥1,921 million will be recognized as expenses for fixed asset taxes, city planningtaxes, etc.
・ In general, fixed asset tax and city planning tax and other taxes and public dues on acquired assets aresettled with 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 ¥6,775 million (¥3,478 million for capital expenditure I, ¥862 million
for capital expenditure II, ¥2,434 million for capital expenditure III, and of those capital expenditure,¥3,000 million is for expenditure (¥800 million for capital expenditure I and ¥2,200 million for capital
expenditure III) related to the large-scale renovation at Hilton Tokyo Odaiba) (*) for the fiscal year ending
December 2020 (21st period). In addition, capital expenditure related to the large-scale renovation at
Namba Oriental Hotel is assumed to be ¥2,600 million in the fiscal year ending December 2021 (22ndperiod).
(*) JHR classifies capital expenditures into the following three categories. (I) Capital investment related to renewalof equipment 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.

Note: This document is intended to serve as a press release to make available the information on the revision of operating forecast for the fiscal year ended
December 2019 (20th period) and operating forecast and forecast of dividend for the fiscal year ending December 2020 (21th 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.

13

Item

Assumptions

OperatingExpenses・ Depreciation is calculated using the straight-line method including the planned capital expenditures above,and is assumed to be ¥4,859 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 fromthe forecast amount for various reasons, such as; (1) Emergency repair expenses may be necessary due todamage to buildings from unexpected causes; (2) The amount of repair expenses generally tends to increasein difference over time; and (3) Repair expenses are not required on a regular basis.

・ ¥1,888 million is expected for borrowing-related costs, including interest expense, amortization for
Non-operating
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 the end of
December 2019 was ¥168,754 million. It is assumed that the balance of interest-bearing debt will beInterest¥168,754 million as of December 31, 2020.
bearing Debt
・ It is assumed that ¥12,782 million loans, which are due within the fiscal year ending December 2020 (21stperiod), will be fully refinanced.
・ Dividend per unit for the fiscal year ending December 2020 (21st period) is calculated based on thefollowing assumptions.
Net income
Use of reserve for temporary difference adjustment (negative goodwill)
50-year amortization amount of negative goodwill (*1)
Loss on retirement of noncurrent assets (*2)
Correspondence to large-scale renovation works for Hilton Tokyo Odaiba (*3)
Correspondence to large-scale renovation works for Namba Oriental Hotel (*4)
Distributable amount
Total number of investment units issued
Dividend per unit(*1)

Dividend per
Unit

(*2)
(*3)
(*4)

¥16,238 million¥262 million¥18 million¥44 million¥172 million¥16,735 million
4,462,347 units¥3,750¥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.
Hilton Tokyo Odaiba is scheduled to implement a large-scale renovation with suspension of part of room sales
from September 2020 to December 2020. Taking into consideration the effect on dividend by the renovation,
reserve for temporary difference adjustment (negative goodwill) will be appropriated.
Namba Oriental Hotel is scheduled to implement a large-scale renovation with suspension of hotel operationfrom November 2020 to March 2021. Taking into consideration the effect on dividend by the renovation,
reserve for temporary difference adjustment (negative goodwill) will be appropriated.

・ 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 environmentof hotel 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 2020 (21st period) is expected to be ¥10,118 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
Note: This document is intended to serve as a press release to make available the information on the revision of operating forecast for the fiscal year ended
December 2019 (20th period) and operating forecast and forecast of dividend for the fiscal year ending December 2020 (21th 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.

14

Others

・ It is assumed that revision in law, tax system, accounting standard, regulations of the listing, regulations of
the ITAJ 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 for the fiscal year ended
December 2019 (20th period) and operating forecast and forecast of dividend for the fiscal year ending December 2020 (21th 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.

15

<Reference Information 3> Hotel operation indexes, sales and GOP
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 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 20 Hotels with Variable Rent, etc.
In order to eliminate the impact of the suspension of sales due to the renovation, 20 hotels, excluding Namba Oriental
Hotel from The 21 Hotels with Variable Rent, etc. are stated. The same shall apply hereinafter.
Fiscal year ended
December 2018

Occupancy
Rate

ADR
(*1)

RevPAR(*2)

Sales(JPY1M)GOP(JPY1M)(*1)(*2)

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 ofthe year
Second halfof the year

Fiscal year ending
December 2020

Fiscal year ended December 2019

ActualComparison
withprevious
periodPrevious
forecast(first half:
actual)Forecast
this time(first half:
actual)

87.0%

0.4pt

86.1%

86.1%

(0.9pt)86.9%(1.3pt)

89.1%

86.5%

87.0%

(0.5pt)87.6%

14,344

2.2%

16,820Comparison Comparison
with
with
previous
previous
periodforecast

Forecast
this time

Comparison
withprevious
period

0.0pt

86.3%

0.2pt

(0.4pt)(2.5pt)

88.6%

2.0pt

86.3%

(0.6pt)(1.3pt)

87.5%

1.1pt

14,502

14,5021.1%

0.0%

14,485(0.1%)

0.8%

16,735

16,262(3.3%)(2.8%)

17,611

8.3%

15,592

1.4%

15,647

15,392(1.3%)(1.5%)

16,077

4.5%

12,4802.7%

12,491

12,4910.1%

0.0%

12,5060.1%

14,619(0.6%)

14,90814,075(3.7%)(5.6%)

15,60010.8%

13,5590.9%

13,70913,289

(2.0%)(3.1%)

14,061

5.8%

21,541

0.9%

21,78021,7801.1%

0.0%

21,8140.2%

24,783(0.9%)

25,21024,108(2.7%)(4.4%)

25,9797.8%

46,324(0.1%)

46,99045,888(0.9%)(2.3%)

47,792

4.2%

6,841

2.8%

6,889

6,889

0.7%

0.0%

6,579

(4.5%)

9,260

0.1%

9,335

8,853

(4.4%)(5.2%)

9,766

10.3%

Full year
16,101
1.2%
16,224
15,742(2.2%)(3.0%)
16,345
3.8%
ADR: Represents average daily rate, which is calculated by dividing revenue for rooms department for a given period(including service charges) by the total number of rooms sold during the period. As for the service charge, Kobe Meriken
Park Oriental Hotel, Oriental Hotel tokyo bay, Namba Oriental Hotel, Hotel Nikko Alivila, Oriental Hotel Hiroshima,
Okinawa Marriott Resort & Spa, Sheraton Grand Hiroshima Hotel (ACTIVE-INTER CITY HIROSHIMA), International
Garden Hotel Narita, Hotel Nikko Nara and Oriental Hotel Fukuoka Hakata Station request 10%, Hilton Tokyo Narita Airport
requests 12% and Hilton Tokyo Odaiba requests 13%. Moreover, other hotels among the 21 Hotels with Variable Rent, etc. do
not request service charges. The same shall apply hereinafter.
RevPAR represents revenue per available room, which is calculated by dividing total rooms revenue for a certain period(excluding 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 for the fiscal year ended
December 2019 (20th period) and operating forecast and forecast of dividend for the fiscal year ending December 2020 (21th 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.

16

<2>The 10 HMJ Hotels
In order to eliminate the impact of the suspension of hotel operation due to the renovation, 10 hotels, excluding Oriental
Hotel Fukuoka Hakata Station from The Twelve HMJ Hotels are stated. The same shall apply hereinafter.
Fiscal year ended
December 2018

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 2019

Fiscal year ending
December 2020

ActualComparison
withprevious
periodPrevious
forecast(firsthalf:
actual)Forecast
this time(first half:
actual)Comparison
withprevious
periodComparison
withprevious
forecast

Forecast
this time

Comparison
withprevious
period86.8%(0.0pt)

87.0%

87.0%

0.2pt

0.0pt

86.7%

(0.3pt)87.4%(1.1pt)

89.0%

87.6%

0.2pt

(1.4pt)

88.8%

1.3pt

87.1%

(0.6pt)

88.0%

87.3%

0.2pt

(0.7pt)

87.8%

0.5pt

16,293

2.4%

16,251

16,251(0.3%)

0.0%

16,271

0.1%

19,6650.3%

19,426

18,789

(4.5%)(3.3%)

20,5939.6%

17,9991.2%

17,87017,535(2.6%)(1.9%)

18,4705.3%

14,1492.4%

14,14514,145(0.0%)

0.0%

14,114(0.2%)

17,183(1.0%)

17,294

16,455(4.2%)(4.9%)

18,295

11.2%

15,6790.5%

15,733

15,310(2.4%)(2.7%)

16,216

5.9%

17,336

0.3%

17,571

17,5711.4%

0.0%

17,524(0.3%)

20,357(1.2%)

20,505

19,773(2.9%)(3.6%)

21,224

7.3%

37,694(0.5%)

38,07637,344(0.9%)(1.9%)

38,748

3.8%

4,936

2.4%

5,051

5,051

2.3%

0.0%

4,774

(5.5%)

7,204

1.0%

7,139

6,925

(3.9%)(3.0%)

7,603

9.8%

12,1401.6%

12,19011,976(1.3%)(1.8%)

12,377

3.3%

Note: This document is intended to serve as a press release to make available the information on the revision of operating forecast for the fiscal year ended
December 2019 (20th period) and operating forecast and forecast of dividend for the fiscal year ending December 2020 (21th 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.

17

<3>Namba Oriental Hotel
Fiscal year ended
December 2018

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

Fiscal year ended December 2019

Fiscal year ending
December 2020

ActualComparison
withprevious
periodPrevious
forecast(firsthalf:
actual)Forecast
this time(first half:
actual)93.5%(1.3pt)

95.8%

95.8%

2.3pt

0.0pt

93.6%

(2.2pt)92.2%(4.4pt)

94.3%

90.1%

(2.1pt)(4.2pt)62.1%(27.9pt)

92.8%(2.9pt)

95.0%

92.9%

0.1pt

(2.1pt)77.8%(15.1pt)

21,7482.4%

19,707

19,707(9.4%)

0.0%

18,137(8.0%)

21,214(5.5%)

20,46817,616(17.0%)(13.9%)

17,933

1.8%

21,481(1.7%)

20,08818,685(13.0%)(7.0%)

18,055(3.4%)

20,3301.0%

18,88018,880(7.1%)

0.0%

16,971(10.1%)

19,558(9.9%)

19,301

15,867(18.9%)(17.8%)

11,142(29.8%)

19,941(4.7%)

19,092

17,361(12.9%)(9.1%)

14,041(19.1%)

1,418

1.7%

1,344

1,344

(5.2%)

0.0%

1,226

(8.7%)

1,474(1.3%)

1,446

1,252

(15.0%)(13.4%)

943(24.7%)

2,891

0.2%

2,790

2,596

(10.2%)(6.9%)

2,170(16.4%)

874

1.1%

820

820

(6.1%)

0.0%

688(16.0%)

937

2.8%

854

729

(22.2%)(14.6%)

483(33.7%)

Comparison Comparison
Forecastwith previous with previous
this time
periodforecast

Comparison
withprevious
periodFull year
1,810
1.9%
1,674
1,549
(14.4%)(7.4%)
1,172(24.4%)
Namba Oriental Hotel is scheduled to implement a large-scale renovation with the suspension of hotel operation from
November 2020 to March 2021.

Note: This document is intended to serve as a press release to make available the information on the revision of operating forecast for the fiscal year ended
December 2019 (20th period) and operating forecast and forecast of dividend for the fiscal year ending December 2020 (21th 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.

18

<4> Oriental Hotel Fukuoka Hakata Station
Fiscal year ended
December 2018

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

Fiscal year ended December 2019

Fiscal year ending
December 2020

ActualComparison
withprevious
periodPrevious
forecast(firsthalf:
actual)Forecast
this time(first half:
actual)

94.7%

1.0pt

39.1%

39.1%

(55.6pt)

0.0pt

87.5%

48.4pt47.0%(48.4pt)

85.8%

88.4%

41.4pt

2.7pt

88.8%

0.3pt

70.7%

(23.9pt)

62.7%

64.0%

(6.7pt)

1.3pt

88.1%

24.1pt13,323

8.4%

19,385

19,385

45.5%

0.0%

18,137(6.4%)

13,343(1.5%)

18,656

18,31437.3%(1.8%)

18,6992.1%

13,3303.1%

18,882

18,63939.8%(1.3%)

18,421(1.2%)

12,621

9.6%

7,588

7,588

(39.9%)

0.0%

15,869109.2%

6,274(51.5%)

16,005

16,198158.2%

1.2%

16,595

2.5%

9,422

(22.9%)

11,831

11,928

26.6%

0.8%

16,234

36.1%

1,199

(5.3%)

673

673(43.9%)

0.0%

1,287

91.3%

637

(46.8%)

1,286

1,313

106.1%

2.1%

1,367

4.1%

1,836

(22.5%)

1,959

1,985

8.2%

1.4%

2,654

33.7%

494

3.9%

131

131

(73.4%)

0.0%

603

358.4%

141(69.8%)

629

661

368.4%

5.0%

651(1.5%)

Comparison Comparison
Forecastwith previous with previous
this time
periodforecast

Comparison
withprevious
periodFull year635(32.6%)
761
792
24.7%
4.2%
1,254
58.2%
Large-scale renovation works causing the suspension of hotel operation were implemented at Oriental Hotel Fukuoka Hakata
Station from October 1, 2018 to April 8, 2019.

Note: This document is intended to serve as a press release to make available the information on the revision of operating forecast for the fiscal year ended
December 2019 (20th period) and operating forecast and forecast of dividend for the fiscal year ending December 2020 (21th 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.

19<5> Hotel Oriental Express Osaka Shinsaibashi
Fiscal year ended
December 2018

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

Fiscal year ending
December 2020

Fiscal year ended December 2019

ActualComparison
with previous
periodPrevious
forecast(first half:
actual)Forecast
this time(first half:
actual)

－

－

92.3%

92.3%

－

－

91.5%

－

－

－

Comparison
withprevious
periodComparison
withprevious
forecast

Forecast
this time

Comparison
withprevious
period

－

0.0pt

90.7%

(1.6pt)88.3%－(3.2pt)

92.2%

3.9pt

91.9%

90.3%

－

(1.6pt)

91.5%

1.2pt

－

9,611

9,611

－

0.0%

9,275

(3.5%)－－

10,4299,013－(13.6%)

9,385

4.1%

－

－

10,021

9,316－(7.0%)

9,331

0.2%

－

－

8,868

8,868

－

0.0%

8,414

(5.1%)

－

－

9,544

7,958

－

(16.6%)

8,654

8.8%

－

－

9,209

8,409

－

(8.7%)

8,535

1.5%

－

－

205

205

－

0.0%

199

(2.7%)

－

－

226

190

－

(15.9%)

207

8.8%

－

－

431

395

－

(8.3%)

407

2.9%

－

－

84

84

－

0.0%

73

(13.7%)

－

－

91

71

－

(21.4%)

78

10.1%

Full year
－
－
175
156
－
(11.1%)
151(2.8%)As Hotel Oriental Express Osaka Shinsaibashi opened on April 2, 2018, figures prior to the fiscal year December ended 2018
are not shown.

Note: This document is intended to serve as a press release to make available the information on the revision of operating forecast for the fiscal year ended
December 2019 (20th period) and operating forecast and forecast of dividend for the fiscal year ending December 2020 (21th 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.

20<6> Hilton Tokyo Odaiba
Fiscal year ended
December 2018

Occupancy
Rate

ADR

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

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

Fiscal year ending
December 2020

Fiscal year ended December 2019

ActualComparison
withprevious
periodPrevious
forecast(first half:
actual)Forecast
this time(first half:
actual)Comparison
withprevious
periodComparison
withprevious
forecast

Forecast
this time

Comparison
withprevious
period

95.2%

0.9pt

85.9%

85.9%

(9.3pt)

0.0pt

90.4%

4.5pt

92.9%

(3.0pt)

91.3%

89.7%

(3.1pt)(1.6pt)83.2%(6.5pt)94.0%(1.1pt)

88.6%

87.8%

(6.2pt)(0.8pt)86.8%(1.1pt)28,831

6.8%

29,26329,263

1.5%

0.0%

29,4880.8%

31,3968.6%

32,447

31,5330.4%(2.8%)

40,86029.6%

30,108

7.6%

30,91730,432

1.1%(1.6%)

34,96914.9%27,451

7.7%

25,13525,135(8.4%)

0.0%

26,6506.0%

29,154

5.3%

29,62228,289

(3.0%)(4.5%)

33,98120.1%

28,3096.4%

27,397

26,725(5.6%)(2.5%)

30,336

13.5%

4,591

9.5%

4,258

4,258

(7.3%)

0.0%

4,509

5.9%

5,008

7.3%

4,744

4,660

(6.9%)(1.8%)

5,723

22.8%

9,599

8.3%

9,001

8,918

(7.1%)(0.9%)

10,232

14.7%

1,374

21.7%

1,144

1,144

(16.7%)

0.0%

1,225

7.0%

1,723

15.2%

1,624

1,522

(11.7%)(6.3%)

2,198

44.4%

Full year
3,097
18.0%
2,768
2,666
(13.9%)(3.7%)
3,423
28.4%
Hilton Tokyo Odaiba was acquired on April 8, 2019. The figures for the fiscal year ended December 2018 and the fiscal year
ending December 2019 are calculated as the total for full year including figures prior to the acquisition date.
Hilton Tokyo Odaiba is scheduled to implement a large-scale renovation with suspension of part of room sales from
September 2020 to December 2020.

Note: This document is intended to serve as a press release to make available the information on the revision of operating forecast for the fiscal year ended
December 2019 (20th period) and operating forecast and forecast of dividend for the fiscal year ending December 2020 (21th 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.

21