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.
June 24, 2024
REIT Issuer:
Japan Hotel REIT Investment Corporation (TSE code: 8985)
Kaname Masuda, Executive Director
Asset Management Company:
Japan Hotel REIT Advisors Co., Ltd.
Hiroyuki Aoki, President and CEO
Contact:
Makoto Hanamura
Director of the Board, Managing Director
Head of Finance and Planning Division
TEL: +81-3-6422-0530
Notice Concerning New Loans
Japan Hotel REIT Investment Corporation (hereinafter called “JHR”) informs you that the Board of Directors meeting
today resolved as below on new borrowings (hereinafter called the “New Loans”).
1.

Summary of New Loans(1) Rationale for the New Loans

The New Loans will be applied toward the funds for part of the acquisition price of real estate beneficial interests intrust of OKINAWA HARBORVIEW HOTEL, Southern Beach Hotel & Resort OKINAWA, MIMARU Tokyo
Shinjuku West and HOTEL AMANEK Shinjuku-Kabukicho, and movable assets attached to them (hereinafter called
the “Beneficial Interests, etc.”).
Please see “Notice Concerning Acquisition and Lease of Domestic Real Estate Beneficial Interests in Trust(OKINAWA HARBORVIEW HOTEL, Southern Beach Hotel & Resort OKINAWA, MIMARU Tokyo Shinjuku
West and HOTEL AMANEK Shinjuku-Kabukicho.)” dated today for an overview of the Beneficial Interests, etc.

(2) Details of the New Loans
Names ofLoan

Lenders

Term
Loan
102

Sumitomo Mitsui Banking Corporation
Mizuho Bank, Ltd.
Resona Bank, Limited
MUFG Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Development Bank of Japan Inc.
SBI Shinsei Bank, Limited
Kansai Mirai Bank, Limited
Daiwa Next Bank, Ltd.

TermLoan
103

Development Bank of Japan Inc.
Bank of the Ryukyus, Limited
The Nishi-Nippon City Bank, Ltd.

Amount of theInterest Rate
New Loan(*1)(millions of yen)

8,000

1,950

Base interest
rate + 0.25%

Base interest
rate + 0.50%(*2)

Scheduled
Borrowing Maturity Date
Date

Collateral /Method ofRepayment

July 12,2024

Unsecured &Unguaranteed /September 30, Lump-sum
2025
repayment on
the maturity
date

July 31,2024

Unsecured &Unguaranteed /Lump-sum
repayment on
the maturity
date

March 30,2029

Note: This document is intended to serve as a press release to make available information on new borrowings by JHR. This document should not be
considered as an offer to sell or solicitation of an offer to purchase any investment units or other investment of JHR. Prospective investors areadvised to make any investment decisions at their own risk and responsibility. This press release does not constitute an offer of securities in theUnited States. Securities may not be offered or sold in the United States without registration or an exemption from registration under the UnitedStates Securities Act of 1933 (as amended). Any public offering of securities to be made in the United States will be made by means of an English
language prospectus prepared in accordance with the U.S. Securities Act of 1933 that may be obtained from the issuer or distributor of the security
and that will contain detailed information about the issuer and its management as well as its financial statements. However, the securities referred
to above will not be publicly offered or sold in the United States.

1Names of
Loan

Lenders

Term
Loan
104

Sumitomo Mitsui Banking Corporation
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Resona Bank, Limited
The Bank of Fukuoka, Ltd.
The Chiba Bank, Ltd.
Kansai Mirai Bank, LimitedAozora Bank, Ltd.
The Shizuoka Bank, Ltd.

TermLoan105

MUFG Bank, Ltd.

TermLoan
106

Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Resona Bank, Limited
SBI Shinsei Bank, Limited
Daiwa Next Bank, Ltd.
Aozora Bank, Ltd.
The Minato Bank, Ltd.
Kansai Mirai Bank, Limited
The Bank of Okinawa, Ltd.

TermLoan
107
(*1)

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

∗

MUFG Bank, Ltd.

Amount of theInterest Rate
New Loan(*1)(millions of yen)

5,850

Base interestrate + 0.55%
(*2)

500

To bedetermined(fixed rate)(*3)

12,700Base interest
rate + 0.60%
(*2)

1,000

To bedetermined(fixed rate)(*3)

Scheduled
Borrowing Maturity Date
Date

July 31,2024

July 31,2024

July 31,2024

July 31,2024

Collateral /Method of
Repayment

March 29,
2030

Unsecured &Unguaranteed /Lump-sum
repayment on
the maturity
date

March 29,
2030

Unsecured &Unguaranteed /Lump-sum
repayment on
the maturity
date

March 31,
2031

Unsecured &Unguaranteed /Lump-sum
repayment on
the maturity
date

March 31,
2031

Unsecured &Unguaranteed /Lump-sum
repayment onthe maturitydate

The first interest payment date will be the last day of August 2024, and subsequent interest payment dates will be the last day of each month
thereafter (or the immediately preceding business day, if that day is not a business day) and the maturity date.
The base interest rate to be applied to the calculation period of the interest to be paid on the interest payment date will be JBA Japanese Yen
TIBOR for one month as of two business days prior to the immediately preceding interest payment date (or, two business days prior to theborrowing date as to the first interest calculation period). However, as to Term Loan 102, JBA Japanese Yen TIBOR for three months will
be applied for the first interest calculation period and JBA Japanese Yen TIBOR for one month will be applied for all other interest calculation
periods.
Please refer to the website of JBA TIBOR Administration for JBA Japanese Yen TIBOR (https://www.jbatibor.or.jp/english/rate/).
JHR plans to enter into interest rate swap contracts and fix interest rates for Term Loans 103, 104 and 106. The details will be announced
once interest rates are determined to be fixed.
Fixed rates will be announced once they are determined.
The information for the New Loans is based on the conditional commitment letters issued by financial institutions regarding the debt financing.
However, it does not guarantee actual implementation of financing listed above.

The LTV ratio (based on total asset) is expected to be approx. 41.5% following the execution of the New Loans
and the acquisition of the Beneficial Interests, etc. This LTV ratio (based on total asset) is calculated based on
the amount of the net proceeds estimated as of today from the issuance of new investment units through public
offering and by way of third-party allotment which is calculated based on the closing price of the investment unit
traded on Tokyo Stock Exchange on May 31, 2024, assuming that the option to purchase additionally issued JHR
investment units granted to the overseas underwriters in the overseas offering, described in the “NoticeConcerning Issuance of New Investment Units and Secondary Offering of Investment Units” dated today, isexercised in full and all newly issued investment units via the third-party allotment are paid in from SMBC Nikko
Securities Inc. Therefore, the LTV ratio (based on total asset) may vary subject to the actual amount of the net
proceeds from the offerings.

Note: This document is intended to serve as a press release to make available information on new borrowings by JHR. This document should not be
considered as an offer to sell or solicitation of an offer to purchase any investment units or other investment of JHR. Prospective investors areadvised to make any investment decisions at their own risk and responsibility. This press release does not constitute an offer of securities in theUnited States. Securities may not be offered or sold in the United States without registration or an exemption from registration under the UnitedStates Securities Act of 1933 (as amended). Any public offering of securities to be made in the United States will be made by means of an English
language prospectus prepared in accordance with the U.S. Securities Act of 1933 that may be obtained from the issuer or distributor of the security
and that will contain detailed information about the issuer and its management as well as its financial statements. However, the securities referredto above will not be publicly offered or sold in the United States.

22.

Status of the Interest-Bearing Debt after the New Loans (scheduled)Category(Unit: millions of yen)

Before New Loans

After New Loans－－－

138,331

168,331+30,000

Total loans

138,331

168,331+30,000

Total investment corporation bonds

36,90036,900－Total interest-bearing debt

175,231205,231+30,000

Short-term loans
Long-term loans (*2)

Variance(*1) Amounts are rounded down to the nearest millions of yen.
(*2) Long-term loans payable within one year are included in the long-term loans.

The ratio of fixed interest rate to total interest-bearing debt after the New Loans is expected to be approximately 74%.

3.

Future Prospects
Please see “Notice Concerning Revision of Operating and Dividend Forecast for the Fiscal Year Ending December 2024
(25th Period)” dated today for operating forecast taking the New Loans into consideration.

4.

OthersWith respect to the risk in relation to the New Loans, please refer to the “Investment Risk” stated in the Securities
Registration Statement (available in Japanese only) submitted today.

*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 information on new borrowings by JHR. This document should not be
considered as an offer to sell or solicitation of an offer to purchase any investment units or other investment of JHR. Prospective investors areadvised to make any investment decisions at their own risk and responsibility. This press release does not constitute an offer of securities in theUnited States. Securities may not be offered or sold in the United States without registration or an exemption from registration under the UnitedStates Securities Act of 1933 (as amended). Any public offering of securities to be made in the United States will be made by means of an English
language prospectus prepared in accordance with the U.S. Securities Act of 1933 that may be obtained from the issuer or distributor of the security
and that will contain detailed information about the issuer and its management as well as its financial statements. However, the securities referred
to above will not be publicly offered or sold in the United States.

3