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.
March 25, 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 and Forecast of Dividendfor 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
and forecast of dividend for the fiscal year ending December 2020 (January 1, 2020 through December 31, 2020), which
was announced in the “Financial Report for the Fiscal Year Ended December 31, 2019 (January 1, 2019 – December 31,2019),” dated February 20, 2020 as follows.

1. Revision of the operating forecast for the midterm of the fiscal year ending December 2020(January 1, 2020 through June 30, 2020)

Previous forecast(A)
Revised forecast(B)
Variance(C) = (B)－(A)Variance ratio(D) = (C) / (A)
(*1)
(*2)

Dividend per unit
(Excess ofearnings
exclusive)
JPY

Dividend per unit
resulting fromexcess ofearnings
JPY

Operatingrevenue

OperatingincomeOrdinary
incomeNet income

JPY1M

JPY1M

JPY1M

JPY1M

－－

JPY1M
TBD
JPY1M

JPY1M
TBD
JPY1M

JPY1M
TBD
JPY1M

JPY1M
TBD
JPY1M

JPY

JPY－－

JPY

JPY

－－－－－－%%%%%%－－－－－－

13,539

7,895

6,972

6,972

Dividend per unit is calculated based on the number of investment units issued as of today: 4,462,347 units.
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.

12.

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

Previous forecast(A)
Revised forecast(B)
Variance(C) = (B)－(A)Variance ratio(D) = (C) / (A)

3.

JPY1M

Dividend per unit
(Excess ofearnings
exclusive)
JPY

Dividend per unit
resulting fromexcess ofearnings
JPY

JPY1M
TBD
JPY1M

JPY
TBD
JPY

JPY
TBD
JPY－Operating
revenue

OperatingincomeOrdinary
incomeNet income

JPY1M

JPY1M

JPY1M

JPY1M
TBD
JPY1M

JPY1M
TBD
JPY1M

JPY1M
TBD
JPY1M

29,971

18,12816,23916,2383,750－－－－－－%%%%%%－－－－－－

Rationale for the revisions of the operating forecast for the full fiscal year ending December 2020 (January 1, 2020
through December 31, 2020)
Due to the global spread of the coronavirus (COVID-19), the number of infected people in Japan and overseas has
been increasing since the beginning of 2020. There have been various events happening, such as the request by thegovernment to refrain from holding various events, the suspension of operations of theme parks, and the restrictions
on travel from some countries. Therefore, travel demand by inbound visitors to Japan from foreign countries
including China has been significantly declining, and demand for accommodation and banquets among Japanesepeople has been also decreasing. As a result, the business environment surrounding hotels has changed dramaticallysince we disclosed the previous forecast. RevPAR of the total of the 20 Hotels with Variable Rent, etc. (Note 1) forFebruary 2020 declined 28.1% from the same month last year. As of today, it is expected that RevPAR of the totalof the 20 Hotels with Variable Rent, etc. for March 2020 is likely to decline by a little under 70% from the samemonth last year, due to a number of factors including voluntary restraints on nationwide events, suspension of theoperations of large-scale theme parks, travel restrictions to Japan by foreign countries, and the expansion ofcountries subject to restrictions on entry to Japan from foreign countries, etc.
As the revenue of JHR is largely influenced by the variable rent (Note 2), which is linked to hotel revenues, wedecided to revise our operating forecast and state that our operating forecast will be determined later.
It is difficult to forecast our revenue at this point as we cannot calculate the impact on hotel revenue by thecoronavirus outbreak. Therefore, we determined to state that the operating forecast for the fiscal year ending
December 31, 2020 will be determined later. We will promptly announce the operating forecast after carefully
examining and considering the impact of the above-mentioned events on revenues of the hotels owned by JHR, thestatus of implementation of measures to reduce costs, which we are working with our tenants, etc., the review ofplans for capital expenditure, as well as various measures to be taken by JHR including the appropriateness ofutilizing negative goodwill and its details, etc.
(Note 1)

(Note 2)The 20 Hotels with Variable Rent, etc. are The 10 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 Ten HMJ Hotels are Kobe Meriken Park Oriental Hotel, Oriental Hotel tokyo
bay, Hotel Nikko Alivila, Oriental Hotel Hiroshima, Okinawa Marriott Resort & Spa, ACTIVE-INTER CITYHIROSHIMA (Sheraton Grand Hiroshima Hotel), 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), large-scale renovation works accompanied by suspension of entire hotel
operation was carried out from October 1, 2018 to April 8, 2019. Namba Oriental Hotel is scheduled to implement
large-scale renovation works accompanied by suspension of entire hotel operation from November 2020 throughMarch 2021. Therefore, numbers for these hotels are not included in HMJ Group Hotels.)
For overview of the variable rent, please refer to “3. Reference information; (1) Information on values of assets
under management, etc.; (ii) Assets under management; (C) Other major assets under management; C. Overview ofthe hotel business; a. Rent structures of hotels with variable rent, management contract or revenue sharing” inFinancial Report for the Fiscal Year Ended December 31, 2019 (January 1, 2019 – December 31, 2019),” dated
February 20, 2020

* Website of Japan Hotel REIT Investment Corporation: https://www.jhrth.co.jp/en/2