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 Revision of Operating and Dividend Forecast
for the Fiscal Year Ending December 2024 (25th Period)
Japan Hotel REIT Investment Corporation (hereinafter called “JHR”) informs you of the revisions to operating and dividend
forecast for the fiscal year ending December 2024 (January 1, 2024 through December 31, 2024) announced in “Financial
Report for the Fiscal Year Ended December 31, 2023” dated February 21, 2024, as follows.

1. Revision of the Operating Forecast for the Midterm of the Fiscal Year Ending December 2024
(January 1, 2024 through June 30, 2024)

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

OperatingincomeOrdinary
incomeNet income

JPY1M
13,936
JPY1M
14,210
JPY1M
273
%
2.0

JPY1M
7,974
JPY1M
8,264
JPY1M
289
%
3.6

JPY1M
6,880
JPY1M
7,185
JPY1M
304
%
4.4

JPY1M
6,880
JPY1M
7,185
JPY1M
305
%
4.4

Dividend per unit
(Excess of earnings
exclusive)

JPY
－
JPY
－
JPY
－
%
－

Dividend per unit
resulting fromexcess of earnings

JPY
－
JPY
－
JPY
－
%
－

(*1) For the assumptions of the operating forecast above, please refer to “<Reference Information 1> Assumptions of the operating
forecast for the midterm of the fiscal year ending December 2024 (25th Period) and the full fiscal year ending December 2024
(25th Period)” below.
(*2) Amounts are rounded down to the nearest millions of yen and percentages are rounded off to the nearest second 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 and dividend forecast for the fiscal
year ending December 2024 (25th Period). This document should not be construed as an offer to sell or solicitation of an offer to purchase any investment
unit or other investment of JHR. Prospective investors are advised to make any investment decision at their own risk and responsibility. This press release
does not constitute an offer of securities in the United States. Securities may not be offered or sold in the United States without registration or an exemption
from registration under the United States Securities Act of 1933 (as amended). Any public offering of securities to be made in the United States will bemade 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, thesecurities referred to above will not be publicly offered or sold in the United States.

12. Revision of the Operating and Dividend Forecast for the Full Fiscal Year Ending December 2024
(January 1, 2024 through December 31, 2024)

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

OperatingincomeOrdinary
incomeNet income

Dividend per unit
(Excess of earnings
exclusive)

JPY1M
31,288JPY1M
32,758
JPY1M
1,469
%
4.7

JPY1M
18,815
JPY1M
19,963
JPY1M
1,148
%
6.1

JPY1M
16,713
JPY1M
17,396
JPY1M
683
%
4.1

JPY1M
16,712
JPY1M
17,395
JPY1M
683
%
4.1

JPY
3,722
JPY
3,764
JPY
42
%
1.1

Dividend per unit
resulting fromexcess of earnings

JPY
－
JPY
－
JPY
－
%
－

(Reference) Forecast of net income per unit for the full fiscal year ending December 2024: JPY3,575 (Calculated based on the forecastof the average number of investment units during fiscal period ending December 2024 (4,865,133 units))(*1) In addition to the number of investment units issued as of today (4,637,006 units), it is assumed that all 460,000 new
investment units will be issued through a public offering (up to 451,641 units) (investment units to be purchased andunderwritten by the domestic and the overseas underwriters in the domestic public offering and the overseas offering(hereinafter collectively called the “Offering”) and additional new investment units to be issued upon the exercise of theover-allotment option granted to the overseas underwriters) and by way of third-party allotment (up to 8,359 units)determined by the resolution at the JHR’s Board of Directors meeting held today. For details, please refer to “NoticeConcerning Issuance of New Investment Units and Secondary Offering of Investment Units” dated today.
(*2) JHR plans to reverse and distribute JPY1,789 million of reserve for temporary difference adjustment due to negative
goodwill.
(*3) For the assumptions of the operating forecast above, please refer to “<Reference Information 1> Assumptions of theoperating forecast for the midterm of the fiscal year ending December 2024 (25th Period) and the full fiscal year ending
December 2024 (25th Period)” below.
(*4) The acquisition of the 4 properties (OKINAWA HARBORVIEW HOTEL, Southern Beach Hotel & Resort OKINAWA,
MIMARU Tokyo Shinjuku West and HOTEL AMANEK Shinjuku-Kabukicho) (hereinafter called the “Assets for
Anticipated Acquisition”) which is announced in the press release “Notice Concerning Acquisition and Lease ofDomestic 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 is
assumed.

3.

Rationale for the revisions of the operating and dividend forecast
JHR revises its operating and dividend forecast for the full fiscal year ending December 2024 (25th Period) to reflect thefollowings: (1) the issuance of new investment units announced in the press release “Notice Concerning Issuance of
New Investment Units and Secondary Offering of Investment Units” dated today, (2) the decision to acquire the Assets
for Anticipated Acquisition announced in the press release “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, and (3) increase invariable rent, etc. in the real estate beneficial interests in trust held by JHR as of today (hereinafter referred to as the“Existing Properties”). At the same time, JHR revises the operating forecast for the midterm of the fiscal year ending
December 2024 (25th Period).
To manage the dilution of investment units expected to be caused by the issuance of new investment units, JHR plans toappropriate the reserve for temporary difference adjustment due to negative goodwill up to the level of the internal
growth amount mentioned in (3) above.
For details of the comparison with the previous forecast of the operating and dividend for the fiscal year ending
December 2024 (25th Period), please refer to “4. Highlights of the operating and dividend forecast.”

4.

Highlights of the operating and dividend forecast

Note: This document is intended to serve as a press release to make available the information on the revision of operating and dividend forecast for the fiscal
year ending December 2024 (25th Period). This document should not be construed as an offer to sell or solicitation of an offer to purchase any investment
unit or other investment of JHR. Prospective investors are advised to make any investment decision at their own risk and responsibility. This press release
does not constitute an offer of securities in the United States. Securities may not be offered or sold in the United States without registration or an exemption
from registration under the United States Securities Act of 1933 (as amended). Any public offering of securities to be made in the United States will bemade 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, thesecurities referred to above will not be publicly offered or sold in the United States.

2Comparison and the major factors causing the variance between the operating and dividend forecast (revised forecast)for the full fiscal year ending December 2024 (25th Period) and the previous forecast.

(Unit: millions of yen)

Dividend

Profit and Loss

Properties

FY12/2024
FY12/2024(25th Period) (25th Period)
Previous
Forecast

Revised
Forecast(A)(B)

Comparison with
the Previous Forecast% ofincrease /decrease(B)-(A)

Existing
Properties

Assets for
AnticipatedAcquisition(*1)

No. of Properties

47

51

4

－

－

4

Acquisition Price

396,918

453,108

56,19014.2%－

56,190Operating Revenue

31,28832,758

1,469

4.7%

240

1,229

Real Estate
Operating Revenue

31,28832,758

1,469

4.7%

240

1,229

Fixed Rent

15,132

16,128

996

6.6%

91

Composition

48.4%

49.2%

Other Income

1,034

1,067

32

3.2%

29

3

Composition

3.3%

3.3%

Variable Rent

15,121

15,562

440

2.9%

119

321

Composition

48.3%

47.5%
1,505

5.6%

305

1,200

1,209

5.7%

252

957

NOI (*2)

26,82528,331NOI Yield (*2)

6.8%

6.3%

NOI after Depreciation (*2)

21,24822,458NOI Yield after
Depreciation (*2)

5.4%

5.0%

Operating Income

18,815

19,963

1,148

6.1%

Ordinary Income

16,713

17,396683

4.1%

Net Income

16,712

17,395

683

4.1%

549

1,789

1,240

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

17,25819,185

1,926

Number of Units Issued(Unit)

4,637,006

5,097,006

460,000

Dividend per Unit (JPY)

3,722

3,764

42

Factors Causing Variance

904 The Ishin Group Hotels (*3) +JPY54MM
Others +JPY36MM

The 19 HMJ Hotels (*3) +JPY163MM
The Accor Group Hotels (*3) (JPY48MM)The Ishin Group Hotels (*3) +(JPY5MM)
Others +JPY11MM

Amount of reversal from reserve for temporary difference adjustments

225.6% Previous forecast:

11.2%

50-year amortization amount on negative goodwill: JPY262MM
Loss on retirement of noncurrent assets: JPY231MM
Amortization of trademark rights: JPY56MM

Revised Forecast:
50-year amortization amount on negative goodwill: JPY262MM
Loss on retirement of noncurrent assets: JPY231MM
Amortization of trademark rights: JPY56MM
1.1% Dilution: JPY1,240MM
9.9%(*1) Stating the amount of the impact (forecast) by the acquisition of the Assets for Anticipated Acquisition.
(*2) 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 onretirement of noncurrent assets + Asset retirement obligations expenses
NOI yield = NOI / (Anticipated) acquisition price
NOI after depreciation = Real estate operating revenue – Real estate operating costs
NOI yield after depreciation = NOI after depreciation / (Anticipated) acquisition price(*3) The Five HMJ Hotels refers to the following 5 hotels JHR leases to HMJ:
Kobe Meriken Park Oriental Hotel
Oriental Hotel Tokyo Bay
Namba Oriental Hotel
Hotel Nikko Alivila
Oriental Hotel Hiroshima
The same shall apply hereinafter.
The 19 HMJ Hotels refers to the Five HMJ Hotels plus the following 14 hotels which JHR leases to the subsidiaries of HMJ:
Oriental Hotel Okinawa Resort & Spa
Sheraton Grand Hiroshima Hotel (main facility of ACTIVE-INTER CITY HIROSHIMA)
Note: This document is intended to serve as a press release to make available the information on the revision of operating and dividend forecast for the fiscal
year ending December 2024 (25th Period). This document should not be construed as an offer to sell or solicitation of an offer to purchase any investment
unit or other investment of JHR. Prospective investors are advised to make any investment decision at their own risk and responsibility. This press release
does not constitute an offer of securities in the United States. Securities may not be offered or sold in the United States without registration or an exemption
from registration under the United States Securities Act of 1933 (as amended). Any public offering of securities to be made in the United States will bemade 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, thesecurities referred to above will not be publicly offered or sold in the United States.

3

Oriental Hotel Fukuoka Hakata Station
Holiday Inn Osaka Namba
Hilton Tokyo Narita Airport
International Garden Hotel Narita
Hotel Nikko Nara
Hotel Oriental Express Osaka Shinsaibashi
Hilton Tokyo Odaiba
Hotel Oriental Express Fukuoka Tenjin
Oriental Hotel Universal City
Oriental Hotel Kyoto Rokujo
Hotel Oriental Express Fukuoka Nakasukawabata
Hotel JAL City Kannai Yokohama
The same shall apply hereinafter.
The Accor Group Hotels refers to the following 5 hotels: ibis Styles Kyoto Station, ibis Styles Sapporo,
Mercure Sapporo, Mercure Okinawa Naha and Mercure Yokosuka
The same shall apply hereinafter.
The Ishin Group Hotels refers to the following 4 hotels: the b suidobashi, the b ikebukuro, the b hachioji andthe b hakata
The same shall apply hereinafter.

(Note)
The above forecasts are based on status of operation as of today, and the actual dividend per unit may fluctuate. The forecasts
do 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 and dividend forecast for the fiscal
year ending December 2024 (25th Period). This document should not be construed as an offer to sell or solicitation of an offer to purchase any investment
unit or other investment of JHR. Prospective investors are advised to make any investment decision at their own risk and responsibility. This press release
does not constitute an offer of securities in the United States. Securities may not be offered or sold in the United States without registration or an exemption
from registration under the United States Securities Act of 1933 (as amended). Any public offering of securities to be made in the United States will bemade 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, thesecurities referred to above will not be publicly offered or sold in the United States.

4

<Reference Information 1>
Assumptions for the operating forecasts for the midterm of the fiscal year ending December 2024 (25th Period) and the full
fiscal year ending December 2024 (25th Period)
Item

Assumptions

Calculation
Period・ Midterm of the fiscal year ending December 2024 (25th Period): January 1, 2024 through June 30, 2024 (182days)
・ Full fiscal year ending December 2024 (25th Period): January 1, 2024 through December 31, 2024 (366 days)

・ The 47 properties owned by JHR as of today and the following 4 properties (Assets for AnticipatedAcquisition), for a total of 51 properties are assumed.
< Assets for Anticipated Acquisition >Acquisition date
Name of asset
July 12, 2024
MIMARU Tokyo Shinjuku West
Assets underJuly 12, 2024
HOTEL AMANEK Shinjuku-Kabukicho.
Management
July 31, 2024
OKINAWA HARBORVIEW HOTEL
July 31, 2024
Southern Beach Hotel & Resort OKINAWA
・ It is assumed that there will be no changes in assets under management (acquisition of new properties, saleof the Existing Properties, etc.) other than the above by the end of the fiscal year ending December 2024
(25th Period). However, changes in the actual assets under management may take place.

Number ofissuedinvestment
units

・ In addition to the number of investment units issued as of today (4,637,006 units), it is assumed that all
460,000 new investment units will be issued through a public offering (up to 451,641 units) (investment units
to be purchased and underwritten by the domestic and the overseas underwriters in the Offering and all
additional new investment units to be issued upon the exercise of the over-allotment option granted to theoverseas underwriters) and by way of third party allotment (up to 8,359 units) determined by the resolution
at the JHR’s Board of Directors meeting held today. Dividend per unit is calculated based on the expected
outstanding 5,097,006 investment units as of the end of the fiscal year ending December 2024 (25th Period).
・ It is assumed that there will be no additional issuance of investment units or purchase of own investment
units other than the above until the end of the fiscal year ending December 2024 (25th Period).

Note: This document is intended to serve as a press release to make available the information on the revision of operating and dividend forecast for the fiscal
year ending December 2024 (25th Period). This document should not be construed as an offer to sell or solicitation of an offer to purchase any investment
unit or other investment of JHR. Prospective investors are advised to make any investment decision at their own risk and responsibility. This press release
does not constitute an offer of securities in the United States. Securities may not be offered or sold in the United States without registration or an exemption
from registration under the United States Securities Act of 1933 (as amended). Any public offering of securities to be made in the United States will bemade 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, thesecurities referred to above will not be publicly offered or sold in the United States.

5

Item

Assumptions
・ Operating revenue is calculated based on the conditions of the effective lease contracts as of today, etc. (asfor the Assets for Anticipated Acquisition, the lease contracts, etc. that will be in effect at the time of theacquisition of the property) and we take the competitiveness of hotels, market environment and other factors
into consideration for the operating revenue. If there are lease contracts with facilities other than hotels, suchas commercial 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.
(1) The 19 HMJ Hotel
Rents for the 19 HMJ Hotels consist of fixed and variable rents, and variable rents are calculated using thefollowing formula.
Variable rent = [Hotel AGOP (*1) – Base Amount] × Variable rent ratio (%)
However, if AGOP is less than the Base Amount, the variable rent will be 0 yen.
(Unit: millions of yen)Fixed rent
Variable rent
Total rent
Midterm Full year Midterm Full year Midterm Full year
The Five HMJ Hotels

Operating
Revenue

1,610

3,221

1,074

3,211

2,685

6,432

Oriental Hotel Universal City

158

316

605

1,481

764

1,798

Oriental Hotel Okinawa Resort & Spa

274

550

－

507

274

1,057

Sheraton Grand Hiroshima Hotel (*2)

174

348

178

380

352

728

Oriental Hotel Fukuoka
Hakata Station

212

425

665

1,307

877

1,732

Holiday Inn Osaka Namba

288

576

284

670

572

1,246

Hotel Oriental Express
Fukuoka Tenjin

67

135

224

434

291

569

Hilton Tokyo Narita Airport

222

444

88

230

310

674

International Garden Hotel Narita

168

336

94

219

262

555

Hotel Nikko Nara

210

420

1

103

211

523

Hotel Oriental Express
Osaka Shinsaibashi

55

110

54

100

109

211

Hilton Tokyo Odaiba

799

1,600

471

1,200

1,271

2,800

Oriental Hotel Kyoto Rokujo

85

171

74

159

159

330

Note: This document is intended to serve as a press release to make available the information on the revision of operating and dividend forecast for the fiscal
year ending December 2024 (25th Period). This document should not be construed as an offer to sell or solicitation of an offer to purchase any investment
unit or other investment of JHR. Prospective investors are advised to make any investment decision at their own risk and responsibility. This press release
does not constitute an offer of securities in the United States. Securities may not be offered or sold in the United States without registration or an exemption
from registration under the United States Securities Act of 1933 (as amended). Any public offering of securities to be made in the United States will bemade 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, thesecurities referred to above will not be publicly offered or sold in the United States.

6

Item

Assumptions
Fixed rent
Midterm Full year
Hotel Oriental Express Fukuoka
Nakasukawabata

87

174

78

157

165

331

Hotel JAL City Kannai Yokohama

67

135

－

51

67

186

4,480

8,962

3,896

10,216

8,377

19,178

Total
Operating
Revenue(Unit: millions of yen)
Variable rent
Total rent
Midterm Full year Midterm Full year(*1) AGOP (Adjusted GOP = GOP after adjustment) is the amount calculated by subtracting certain fees and other items
from GOP. GOP (gross operating profit) is the remainder after expenses incurred in hotel operation, such as
personnel costs and general administrative expenses, etc., are deducted from total sales. The same shall apply
hereinafter.
(*2) The rent for Sheraton Grand Hiroshima Hotel, the major facility of ACTIVE-INTER CITY HIROSHIMA. The
fixed and variable rents for offices and commercial tenants in ACTIVE-INTER CITY HIROSHIMA are as follows:

Fixed rent
Midterm Full year
ACTIVE-INTER CITY HIROSHIMA(Offices and Commercial Tenants)

246

502

(Unit: millions of yen)
Variable rent
Total rent
Midterm Full year Midterm Full year
5

11

252

514

Note: This document is intended to serve as a press release to make available the information on the revision of operating and dividend forecast for the fiscal
year ending December 2024 (25th Period). This document should not be construed as an offer to sell or solicitation of an offer to purchase any investment
unit or other investment of JHR. Prospective investors are advised to make any investment decision at their own risk and responsibility. This press release
does not constitute an offer of securities in the United States. Securities may not be offered or sold in the United States without registration or an exemption
from registration under the United States Securities Act of 1933 (as amended). Any public offering of securities to be made in the United States will bemade 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, thesecurities referred to above will not be publicly offered or sold in the United States.

7

Item

Operating
Revenue

Assumptions(2) Income from management contracts (*3) and variable rent from other hotels with variable rent, etc.
(unit: millions of yen)
Midterm
Full year
ibis Styles Kyoto Station (*3)
171
337
ibis Styles Sapporo (*3)
194
539
Mercure Sapporo (*3)
242
611
Mercure Okinawa Naha (*3)
120
260
Mercure Yokosuka
150
322
the b suidobashi
62
108
the b ikebukuro
114
213
the b hachioji
68118
the b hakata
93
163
dormy inn Kumamoto
1267
Comfort Hotel Tokyo Higashi Nihombashi
38
38
Smile Hotel Nihombashi Mitsukoshimae
31
31
Chisun Hotel Kamata
72
136
Chisun Inn Kamata
4380
Hilton Tokyo Bay
Undisclosed (*4)
Undisclosed (*4)
Hilton Nagoya
Undisclosed (*4)
Undisclosed (*4)
UAN kanazawa
5
19
Sotetsu Fresa Inn Shimbashi-Karasumoriguchi
108
108
La’gent Stay Sapporo Odori
251
554
Total
2,232
5,013
(*3) Management contract system has been 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 theoperation into JHR as income from real estate management. Each hotel’s GOP amount is recognized in operating
revenues as income from management contracts.
(*4) Undisclosed since tenants that concluded lease contracts do not agree to disclose rent revenue, etc.

(3) Assets for Anticipated Acquisition
1. MIMARU Tokyo Shinjuku West (*5)
Rent is based on fixed rent and variable rent. Calculation method is as follows:
Variable rent = Amount calculated based on GOP of the hotel
However, if calculated amount is below 0 yen, the variable rent will be 0 yen.
2. HOTEL AMANEK Shinjuku-Kabukicho. (*5)
Rent is based on fixed rent and variable rent. Calculation method is as follows:
Variable rent = Amount calculated based on GOP of the hotel
However, if calculated amount is below 0 yen, the variable rent will be 0 yen.
3. OKINAWA HARBORVIEW HOTEL (*6)
Rent will be based on fixed rent only until July 31, 2026.
4. Southern Beach Hotel & Resort OKINAWA (*7)
Rent is based on fixed rent and variable rent. Calculation method is as follows:
Variable rent = Amount calculated based on GOP of the hotel
However, if calculated amount is below 0 yen, the variable rent will be 0 yen.

Note: This document is intended to serve as a press release to make available the information on the revision of operating and dividend forecast for the fiscal
year ending December 2024 (25th Period). This document should not be construed as an offer to sell or solicitation of an offer to purchase any investment
unit or other investment of JHR. Prospective investors are advised to make any investment decision at their own risk and responsibility. This press release
does not constitute an offer of securities in the United States. Securities may not be offered or sold in the United States without registration or an exemption
from registration under the United States Securities Act of 1933 (as amended). Any public offering of securities to be made in the United States will bemade 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, thesecurities referred to above will not be publicly offered or sold in the United States.

8

Item

Assumptions

MIMARU Tokyo Shinjuku West

Operating
Revenue(Unit: millions of yen)Fixed rent
Variable rent
Total
Midterm Full year Midterm Full year Midterm Full year
Undisclosed
Undisclosed
－
－
－
187
(*5)
(*5)

HOTEL AMANEK
Shinjuku-Kabukicho.

－

Undisclosed(*5)－

Undisclosed
(*5)

－

233

OKINAWA HARBORVIEW
HOTEL

－

440
(*6)

－

－

－

440

Southern Beach Hotel & Resort
OKINAWA

－

257
(*7)

－

107
(*7)

－

365

Total

－

904

－

321

－

1,225

(*5) Undisclosed since tenants that concluded lease contracts do not agree to disclose the breakdown of rent revenue. The
rent for the period ending December 2024 is an estimated amount for 173-day from July 12, 2024 to December 31,2024.
(*6) The annual fixed rent will be JPY1,050 million until July 31, 2026. The rent for the period ending December 2024
is an estimated amount for 154-day from July 31, 2024 to December 31, 2024.
(*7) The annual fixed rent will be JPY600 million. The rent for the period ending December 2024 for the Asset for
Anticipated Acquisition is an estimated amount including the rent from commercial tenants for 154-day from July
31, 2024 to December 31, 2024.

・The following is the breakdown of variable rent and income from management contracts.
(Unit: millions of yen)
Midterm
Full year
The 19 HMJ Hotels
3,896
10,216
Other hotels with variable rent, etc.
2,232
5,013
Assets for Anticipated Acquisition－
321
Office and commercial tenants
5
11
Total
6,133
15,562(*8) For details of variable rent of the Existing Properties, please refer to, “3. Reference Information; (1) Information
on values of assets under management, etc.; B. Assets under management; (C) Other major assets undermanagement; (iii) Overview of the hotel business; (a). Rent structures of hotels with variable rent, management
contract or revenue-sharing rent” of the “Financial Report for the Fiscal Year Ended December 31, 2023” dated
February 21, 2024.

Note: This document is intended to serve as a press release to make available the information on the revision of operating and dividend forecast for the fiscal
year ending December 2024 (25th Period). This document should not be construed as an offer to sell or solicitation of an offer to purchase any investment
unit or other investment of JHR. Prospective investors are advised to make any investment decision at their own risk and responsibility. This press release
does not constitute an offer of securities in the United States. Securities may not be offered or sold in the United States without registration or an exemption
from registration under the United States Securities Act of 1933 (as amended). Any public offering of securities to be made in the United States will bemade 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, thesecurities referred to above will not be publicly offered or sold in the United States.

9

Item

Assumptions

OperatingExpenses

・ With respect to real estate operating expenses, which constitute a major part of the operating expenses,
expenses other than depreciation, are calculated based on historical data, and variable factors of costs arereflected in the calculation.
・ It is assumed that the JPY2,097 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 assets acquired
during the fiscal year are settled with the previous owners on a pro rata basis of the holding period. For JHR,
such settlement amount is included in the acquisition price. Therefore, the fixed asset tax and city planningtax, etc. of the Assets for Anticipated Acquisition will not be recorded in the costs for the relevant calculation
period.
・ Capital expenditure is assumed to be JPY7,311 million (JPY3,745 million for capital expenditure I, JPY400
million for capital expenditure II, and JPY3,165 million for capital expenditure III) for the fiscal year ending
December 2024 (25th Period).
(*) JHR classifies capital expenditures into the following 3 categories. (I) Capital investment
relatedto renewal of equipment and facilities of buildings which is required to maintain proper values ofproperties, (II) capital investment for fixtures, furniture and equipment that are not directly related tobuilding 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 JPY5,640 million.
・ Repair expenses for buildings are recognized as expenses in the assumed amount necessary for eachcalculation period. Please note that the repair expenses of each calculation 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.

Non-operating ・ JPY2,568 million is expected for borrowing-related costs, including interest expense, amortization for
Expensesfinancing fee, arrangement fee, and other non-operating expenses.
・ Borrowings associated with the acquisition of Assets for Anticipated Acquisition are assumed to be
JPY30,000 million.
・ The balance of interest-bearing debt (total of borrowings and investment corporation bonds) as of today is
JPY175,231 million and expected to be JPY205,231 million as of July 31, 2024 after the acquisition of Assets
for Anticipated Acquisition. It is assumed that there will be no change in the balance of interest-bearing debt
Interestuntil the end of the fiscal year ending December 2024 (25th Period).
bearing Debt
・ The amount of loans due by the end of the fiscal year ending December 2024 (25th Period) is JPY6,100
million, but the entire amount is assumed to be refinanced.
・ The amount of investment corporation bonds due by the end of the fiscal year ending December 2024 (25thPeriod) is JPY3,000 million, but the entire amount is assumed to be refinanced or investment corporation
bonds is assumed to be issued.

Note: This document is intended to serve as a press release to make available the information on the revision of operating and dividend forecast for the fiscal
year ending December 2024 (25th Period). This document should not be construed as an offer to sell or solicitation of an offer to purchase any investment
unit or other investment of JHR. Prospective investors are advised to make any investment decision at their own risk and responsibility. This press release
does not constitute an offer of securities in the United States. Securities may not be offered or sold in the United States without registration or an exemption
from registration under the United States Securities Act of 1933 (as amended). Any public offering of securities to be made in the United States will bemade 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, thesecurities referred to above will not be publicly offered or sold in the United States.

10

Item

Assumptions
・ Dividend per unit for the fiscal year ending December 2024 (25th 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)
Correspondence to dilution (*4)
Distributable amount
Total number of investment units issued
Dividend per unit

Dividend per
Unit

JPY17,395 million
JPY262 million
JPY231 million
JPY56 million
JPY1,240 million
JPY19,185 million
5,097,006 units
JPY3,764(*1) JPY262 million (hereinafter called “50-year amortization amount of negative goodwill”) will be paid out as
dividends, with the remaining balance of the reserve for temporary difference adjustment (negative goodwill) set as
the maximum amount, for every fiscal year.
(*2) 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.
(*3) The trademark rights are amortized over 10 years using the straight-line method. Amortization 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.
(*4) For the dividend per unit for the fiscal year ending December 2024 (25th Period), JHR plans to reverse a reserve
for temporary difference adjustment (negative goodwill) up to the level of the internal growth amount of the Existing
Properties in order to cope with dilution of investment units through the issuance of new investment units due tothe acquisition of Assets for Anticipated Acquisition.

・ Dividend per unit may fluctuate due to various causes, such as fluctuation of rent revenue resulting fromtransfer of assets under management, change of tenants, etc. at hotels, change in the business environment ofhotel business for hotel tenants, etc., unexpected repairs, and actual number of new investment units issued,
etc.
・ The remaining balance of the reserve for temporary difference adjustment (negative goodwill) after theappropriation of the reserve for temporary difference adjustment (negative goodwill) for dividends for the
fiscal year ending December 2024 (25th Period) is expected to be JPY6,964 million.

Note: This document is intended to serve as a press release to make available the information on the revision of operating and dividend forecast for the fiscal
year ending December 2024 (25th Period). This document should not be construed as an offer to sell or solicitation of an offer to purchase any investment
unit or other investment of JHR. Prospective investors are advised to make any investment decision at their own risk and responsibility. This press release
does not constitute an offer of securities in the United States. Securities may not be offered or sold in the United States without registration or an exemption
from registration under the United States Securities Act of 1933 (as amended). Any public offering of securities to be made in the United States will bemade 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, thesecurities referred to above will not be publicly offered or sold in the United States.

11

Item

Assumptions
・ The operating status of the Assets for Anticipated Acquisition for the fiscal year ending December 2024 isassumed as follows.
<MIMARU Tokyo Shinjuku West>(unit: millions of yen)
Fiscal year ending
December 2024
Operating days
173 days
Operating revenue
188
NOI (*1)
182<Reference>459
Appraisal NOI (*1) (*2)
4.8
Appraisal NOI yield (%) (*2) (*3)
<HOTEL AMANEK Shinjuku-Kabukicho.>(unit: millions of yen)
Fiscal year ending
December 2024
Operating days
173 days
Operating revenue
235
NOI (*1)
229<Reference>489
Appraisal NOI (*1) (*2)
5.5
Appraisal NOI yield (%) (*2) (*3)

AnticipatedAcquisition<OKINAWA HARBORVIEW HOTEL>(unit: millions of yen)
Fiscal year ending
December 2024
Operating days
154 days
Operating revenue
440
NOI (*1)
431<Reference>
Appraisal NOI (*1) (*2)
1,474Appraisal NOI yield (%) (*2) (*3)
6.9
<Southern Beach Hotel & Resort OKINAWA>(unit: millions of yen)
Fiscal year ending
December 2024
Operating days
154 days
Operating revenue
365
NOI (*1)
357<Reference>
Appraisal NOI (*1) (*2)
1,135
Appraisal NOI yield (%) (*2) (*3)7.0(*1) NOI = Real estate operating revenue – Real estate operating costs + Depreciation +Loss on retirement of noncurrent assets + Asset retirement obligations expenses(*2) NOI for Anticipated Acquisition is calculated based on the NOI, which is the assumption in calculating the revenue
value through the direct capitalization method in the real estate appraisal reports as of April 30, 2024.
(*3) NOI yield = NOI / Anticipated acquisition priceNote: This document is intended to serve as a press release to make available the information on the revision of operating and dividend forecast for the fiscal
year ending December 2024 (25th Period). This document should not be construed as an offer to sell or solicitation of an offer to purchase any investment
unit or other investment of JHR. Prospective investors are advised to make any investment decision at their own risk and responsibility. This press release
does not constitute an offer of securities in the United States. Securities may not be offered or sold in the United States without registration or an exemption
from registration under the United States Securities Act of 1933 (as amended). Any public offering of securities to be made in the United States will bemade 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, thesecurities referred to above will not be publicly offered or sold in the United States.

12

Item

Assumptions

Dividend per
Unit・ It is assumed that the distribution of excess of earnings (dividend per unit resulting from excess of earnings)
Resultingwill not be made.
from Excessof Earnings

Others・ It is assumed that revisions in law, tax system, accounting standard, regulations of the listing, and regulationsof the Investment Trusts Association, Japan that may impact the forecasts above will not be made.
・ It is assumed that unexpected major incidents 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 and dividend forecast for the fiscal
year ending December 2024 (25th Period). This document should not be construed as an offer to sell or solicitation of an offer to purchase any investment
unit or other investment of JHR. Prospective investors are advised to make any investment decision at their own risk and responsibility. This press release
does not constitute an offer of securities in the United States. Securities may not be offered or sold in the United States without registration or an exemption
from registration under the United States Securities Act of 1933 (as amended). Any public offering of securities to be made in the United States will bemade 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, thesecurities referred to above will not be publicly offered or sold in the United States.

13

<Reference Information 2>
The annualized effect simulated based on the forecasts for the fiscal year ending December 2024 (25th Period), target NOI
after Active Asset Management, and the assumptions for the annualized effect and the target NOI<1>The annualized effect simulated based on the forecasts for fiscal year ending December 2024 (25th Period) and theassumptions(1) As to the calculation for rent, etc. of the Assets for Anticipated Acquisition, there is no change from “<Reference
Information 1> Assumptions of the operating forecast for the midterm of the fiscal year ending December 2024 (25thPeriod) and the full fiscal year ending December 2024 (25th Period)” above.
(2) Annual rent, etc. for the full year of the Assets for Anticipated Acquisition are as follows.
(unit: millions of yen)Fixed rent
Variable rent
Total
MIMARU Tokyo Shinjuku West
Undisclosed (*1)
Undisclosed (*1)
412
HOTEL AMANEK Shinjuku-Kabukicho.
Undisclosed (*1)
Undisclosed (*1)
490
OKINAWA HARBORVIEW HOTEL
1,050
－
1,050
Southern Beach Hotel & Resort OKINAWA
614
153
767
Total
2,090
630
2,720
(3) The property taxes and city planning taxes, etc. of the Assets for Anticipated Acquisition are assumed to be JPY147
million (for 12 months).
(4) For non-operating expenses, borrowings related to the asset acquisition, and expenses incurred in the issuance of new
investment units, etc. are assumed on an annualized basis (for 12 months). On the other hand, major one-time financial
cost incurred for asset acquisition is not included.
(5) The annualized effect simulated based on forecast NOI, forecast NOI after depreciation and forecast net income (*2) ofthe Assets for Anticipated Acquisition for fiscal year ending December 2024 are as follows.
(unit: millions of yen)
HOTEL
MIMARU
OKINAWA
Southern Beach
Assets for Anticipated
AMANEKTokyo
HARBORVIEW Hotel & Resort
Total
Acquisition
ShinjukuShinjuku WestHOTEL
OKINAWA
Kabukicho.
Forecast NOI
376
459
1,002
698
2,536
(Yield)
3.9%
5.2%
4.7%
4.3%
4.5%
Forecast NOI after Depreciation(Yield)

337
3.5%

432
4.9%

815
3.8%

463
2.9%

2,049
3.6%

Forecast Net Income

208

313

527

246

1,296

(*1) Undisclosed since tenants that concluded lease contracts do not agree to disclose the breakdown of rent revenue.
(*2) Net Income of the Assets for Anticipated Acquisition is calculated according to the following formula. The same shall apply
hereinafter.
NOI after Depreciation of the Assets for Anticipated Acquisition – Operating costs for the Assets for Anticipated Acquisition(excluding real estate operating costs) – Non-operating costs associated with financing for the Assets for Anticipated Acquisition

Note: This document is intended to serve as a press release to make available the information on the revision of operating and dividend forecast for the fiscal
year ending December 2024 (25th Period). This document should not be construed as an offer to sell or solicitation of an offer to purchase any investment
unit or other investment of JHR. Prospective investors are advised to make any investment decision at their own risk and responsibility. This press release
does not constitute an offer of securities in the United States. Securities may not be offered or sold in the United States without registration or an exemption
from registration under the United States Securities Act of 1933 (as amended). Any public offering of securities to be made in the United States will bemade 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, thesecurities referred to above will not be publicly offered or sold in the United States.

14

<2> Target NOI after Active Asset Management (*1) and the Assumptions(1) Target NOI for the Assets for Anticipated Acquisition is NOI for the full year estimated by Japan Hotel REIT Advisors,
Co., Ltd. (hereinafter called “JHRA”), reflecting the expected effects, etc. of Active Asset Management. Note that target
NOI calculation process and prerequisites include JHRA's judgment, evaluation, and assumptions, and target NOI does
not refer to the forecast for any future period and future results may differ significantly.
(2) JHRA assumes that, among other things, the following measures will be implemented as the Active Asset Management
for the Assets for Anticipated Acquisition; approx. JPY3.5 billion CAPEX (*2) for the renovation of guest rooms,
restaurants, pools, etc. (expected to be implemented during 2025) is expected for OKINAWA HARBORVIEW HOTEL,
as well as a new lease contract for Southern Beach Hotel & Resort OKINAWA, which is expected to be executed withthe lease terms assumed by JHRA (*3) after the expiration of the current fixed term lease contract (scheduled to expire
in December 2025).
(3) Rent for OKINAWA HARBORVIEW HOTEL is based on the fixed and variable rent described below, which will beapplied on and after August 1, 2026:
Fixed rent = JPY55 million / month
Variable rent = [Hotel AGOP – Base Amount of JPY720 million] × 95.0%
However, if AGOP is less than the Base Amount, the variable rent will be zero.
(4) Target NOI of the Assets for Anticipated Acquisition, target NOI after depreciation and target net income are as follows.
See “<Reference Information 3> Hotel operation indexes, sales and GOP” for target occupancy, target ADR, target
RevPAR and target revenue of OKINAWA HARBORVIEW HOTEL and Southern Beach Hotel & Resort OKINAWA.
(unit: millions of yen)
HOTEL
MIMARU
OKINAWA
Southern Beach
Assets for Anticipated
AMANEKTokyo
HARBORVIEW Hotel & Resort
Total
Acquisition
ShinjukuShinjuku WestHOTEL
OKINAWA
Kabukicho.
Target NOI
464
486
1,570
1,019
3,540
(Yield)
4.8%
5.5%
7.3%
6.3%
6.3%
Target NOI after Depreciation
425
459
1,094
784
2,764
(Yield)
4.4%
5.2%
5.1%
4.8%
4.9%
Target Net Income
295
338
798
563
1,995
(*1) Active Asset Management is the proactive asset management by JHRA that aims to achieve strong internal growth, improve
profits and eventually increase the portfolio's asset value.
(*2) The timing, amount, etc. of CAPEX have not been determined and may change in the future.
(*3) The contractual rent is assumed to be “JPY600 million/year + when Hotel GOP exceeds JPY650 million, the excess × 93%”.

Note: This document is intended to serve as a press release to make available the information on the revision of operating and dividend forecast for the fiscal
year ending December 2024 (25th Period). This document should not be construed as an offer to sell or solicitation of an offer to purchase any investment
unit or other investment of JHR. Prospective investors are advised to make any investment decision at their own risk and responsibility. This press release
does not constitute an offer of securities in the United States. Securities may not be offered or sold in the United States without registration or an exemption
from registration under the United States Securities Act of 1933 (as amended). Any public offering of securities to be made in the United States will bemade 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, thesecurities referred to above will not be publicly offered or sold in the United States.

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. Note that target values of the Assets for Anticipated Acquisition reflecting active asset management include
JHRA's judgment, evaluation, and assumptions, and target NOI does not refer to the forecast for any future period and future
results may differ significantly.
ADR (*1) and RevPAR (*2) are rounded off to the nearest yen. Sales and GOP are rounded off to the nearest millions ofyen. Occupancy rate and percentage are rounded off to the first decimal place.
<1> The 19 HMJ Hotels

Occupancy
Rate

ADR
(JPY)

RevPAR(JPY)

First halfof the year
Second halfof the year
Full year
First halfof the year
Second halfof the year
Full year
First half ofthe year
Second halfof the year
Full year

Sales (JPY1M)
Rooms Dept.
F&B Dept.
OthersSales (JPY1M)
Rooms Dept.
F&B Dept.
OthersSales (JPY1M)
Rooms Dept.
F&B Dept.
OthersSecond halfof the year

GOP
(JPY1M)First halfof the year
Second halfof the year
Full year

First halfof the year

Full year

Fiscal year ended
December 2023
Comparison
Results
withprevious year

Fiscal year ending December 2024
Previous
forecast

Revisedforecast

Comparison
withprevious year

Comparison
with previous
forecast

75.8%

21.2pt

82.3%

81.8%

6.0pt

(0.5pt)

81.3%

7.8pt

84.8%

84.8%

3.5pt

－

78.6%

14.4pt

83.5%

83.3%

4.7pt

(0.2pt)18,055

46.9%

19,69819,7159.2%

0.1%

21,28623.8%

22,99922,9998.0%－

19,74030.6%

21,383

21,3968.4%

0.1%

13,685103.8%

16,204

16,12317.8%(0.5%)

17,30237.1%

19,507

19,50712.7%－

15,50823,947
14,564
7,972
1,411
29,37318,7209,335
1,317
53,32033,28417,307
2,729

60.0%
88.3%
123.5%
70.6%(7.9%)
33.3%
50.3%
16.0%
(13.7%)
53.4%
75.5%
36.0%
(10.8%)

17,86527,66817,3419,229
1,098
33,19021,105
10,9151,170
60,85838,44620,144
2,268

17,82427,53017,2549,157
1,120
33,19021,105
10,915
1,170
60,72138,35920,072
2,290

14.9%
15.0%
18.5%
14.9%
(20.7%)
13.0%
12.7%
16.9%
(11.2%)
13.9%
15.2%
16.0%
(16.1%)(0.2%)(0.5%)(0.5%)(0.8%)
2.0%－－－－(0.2%)(0.2%)(0.4%)
0.9%

7,464

386.0%

9,183

9,349

25.3%

1.8%

10,935

75.8%

12,577

12,57715.0%－

18,399137.2%

21,76021,926

19.2%

0.8%

(*1) ADR represents Average Daily Rate, which is calculated by dividing total room revenue of the accommodation department (including
service charges) for a certain period by the total number of rooms sold during the period. The same shall apply hereinafter.
(*2) RevPAR represents Revenue Per Available Room, which is calculated by dividing total room revenue of the accommodation
department (including service charges) for a certain period 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 and dividend forecast for the fiscal
year ending December 2024 (25th Period). This document should not be construed as an offer to sell or solicitation of an offer to purchase any investment
unit or other investment of JHR. Prospective investors are advised to make any investment decision at their own risk and responsibility. This press release
does not constitute an offer of securities in the United States. Securities may not be offered or sold in the United States without registration or an exemption
from registration under the United States Securities Act of 1933 (as amended). Any public offering of securities to be made in the United States will bemade 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, thesecurities referred to above will not be publicly offered or sold in the United States.

16

<2> The 28 Hotels with Variable Rent, etc. (*)

Occupancy
Rate

ADR
(JPY)

RevPAR(JPY)

First halfof the year
Second halfof the year
Full year
First halfof the year
Second halfof the year
Full year
First halfof the year
Second halfof the year
Full year

Sales (JPY1M)
Rooms Dept.
F&B Dept.
OthersSales (JPY1M)
Rooms Dept.
F&B Dept.
OthersSales (JPY1M)
Rooms Dept.
F&B Dept.
OthersSecond halfof the year

GOP
(JPY1M)First halfof the year
Second halfof the year
Full year

First halfof the year

Full year

Fiscal year ended
December 2023
Comparison
Results
withprevious year

Fiscal year ending December 2024
Previous
forecast

Revisedforecast

Comparison
withprevious year

Comparison
with previous
forecast

75.9%

20.1pt

82.0%

81.2%

5.3pt

(0.8pt)

80.8%

6.6pt

84.6%

84.6%

3.7pt

－

78.4%

13.3pt

83.3%

82.9%

4.5pt

(0.4pt)16,22749.3%

17,89917,955

10.6%

0.3%

19,184

27.7%

20,57820,578

7.3%－

17,76434.0%

19,267

19,3008.6%

0.2%

12,311103.0%

14,67014,57518.4%(0.6%)

15,50439.2%

17,40017,40012.2%－

13,92027,046
17,2098,345
1,492
33,20322,0319,778
1,393
60,24939,24018,124
2,885

61.4%
88.3%
117.7%
71.9%(6.9%)
34.2%
49.2%
17.0%
(13.7%)
54.1%
73.1%
37.2%
(10.3%)

16,04331,557
20,6209,759
1,177
37,46924,726
11,4881,254
69,02545,346
21,2482,431

15,99531,343
20,4879,657
1,199
37,46924,726
11,4881,254
68,81245,213
21,146
2,453

14.9%
15.9%
19.0%
15.7%
(19.6%)
12.8%
12.2%
17.5%
(10.0%)
14.2%
15.2%
16.7%
(15.0%)(0.3%)(0.7%)(0.6%)(1.0%)
1.9%－－－－(0.3%)(0.3%)(0.5%)
0.9%

8,462

365.2%

10,59010,752

27.1%

1.5%

12,38875.6%

14,25914,25915.1%－

20,849134.9%

24,85025,011

20.0%

0.7%

(*) The 28 Hotels with Variable Rent, etc. refers to the 19 HMJ Hotels, the Accor Group Hotels and the Ishin Group Hotels.

Note: This document is intended to serve as a press release to make available the information on the revision of operating and dividend forecast for the fiscal
year ending December 2024 (25th Period). This document should not be construed as an offer to sell or solicitation of an offer to purchase any investment
unit or other investment of JHR. Prospective investors are advised to make any investment decision at their own risk and responsibility. This press release
does not constitute an offer of securities in the United States. Securities may not be offered or sold in the United States without registration or an exemption
from registration under the United States Securities Act of 1933 (as amended). Any public offering of securities to be made in the United States will bemade 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, thesecurities referred to above will not be publicly offered or sold in the United States.

17

<3> Assets for Anticipated Acquisition(1) MIMARU Tokyo Shinjuku West

Occupancy
Rate

ADR
(JPY)

RevPAR(JPY)

Sales(JPY1M)GOP(JPY1M)

(*1)

(*2)

First halfof the year
Second halfof the year
Full year
First halfof the year
Second halfof the year
Full year
First halfof the year
Second halfof the year
Full year
First halfof the year
Second halfof the year
Full year
First halfof the year
Second halfof the year
Full year

Fiscal year
ended December 2023
Comparison with
Results
previous year

Fiscal year
ending December 2024
Comparison with
Forecast
previous year

85.6%

56.8pt84.7%(1.0pt)－85.1%

21.5pt84.2%(0.9pt)－85.4%

39.0pt84.4%(0.9pt)85.3%

34,210108.5%

49,52244.8%－

43,069102.3%

45,804

6.3%－

38,662

95.4%

47,65823.3%

47,94129,295519.7%

41,93443.1%－

36,645170.9%

38,5605.2%－

33,000259.5%

40,23821.9%

40,893405

522.4%

582

43.7%

－

516

171.8%

540

4.7%

－

921

261.3%

1,123

21.8%

1,139

265

－

403

52.0%

－

350

236.0%

360

2.8%

－

616

469.6%

763

24.0%

779

TargetValues(*1)

Target values JHRA estimated reflecting the JHRA's estimated reflecting effects of active asset management, described in“<Reference Information 2> The annualized effect simulated based on the forecasts for fiscal year ending December 2024
(25th Period), target NOI after Active Asset Management, and the assumptions of the forecast and the target NOI”. The firsthalf of the year and the second half of the year is indicated as “-” because target values are calculated on an annualized basis.
The same shall apply hereinafter.
The comparison in GOP for the first half of the year ended December 2023 with the previous year is indicated as “-” because
it is more than 1,000%.

Note: This document is intended to serve as a press release to make available the information on the revision of operating and dividend forecast for the fiscal
year ending December 2024 (25th Period). This document should not be construed as an offer to sell or solicitation of an offer to purchase any investment
unit or other investment of JHR. Prospective investors are advised to make any investment decision at their own risk and responsibility. This press release
does not constitute an offer of securities in the United States. Securities may not be offered or sold in the United States without registration or an exemption
from registration under the United States Securities Act of 1933 (as amended). Any public offering of securities to be made in the United States will bemade 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, thesecurities referred to above will not be publicly offered or sold in the United States.

18

(2) HOTEL AMANEK Shinjuku-Kabukicho.

Occupancy
Rate

ADR
(JPY)

RevPAR(JPY)

Sales(JPY1M)GOP(JPY1M)First halfof the year
Second halfof the year
Full year
First halfof the year
Second halfof the year
Full year
First halfof the year
Second halfof the year
Full year
First halfof the year
Second halfof the year
Full year
First halfof the year
Second halfof the year
Full year

Fiscal year
ended December 2023
Comparison with
Results
previous year

Fiscal year
ending December 2024
Comparison with
Forecast
previous year

89.1%

－

92.8%

－

－

94.5%

－

93.1%

(1.5pt)

－

93.1%

－

92.9%

－

92.7%

16,212－

21,710－－20,261－

21,403

5.6%－

19,262－

21,556－

22,736

14,442－

20,143－－

19,154－19,922

4.0%－

17,938－20,031－

21,075

161

－

648

－

－

622

－

643

3.3%

－

784

－

1,291

－

1,354

37

－

442

－

－

432

－

437

1.3%

－

469

－

880

－

915

TargetValues(Note) Since HOTEL AMANEK Shinjuku-Kabukicho opened on April 28, 2023, no comparison for the fiscal year ended December
2023 with the previous year or comparison for the first half and full year of the fiscal year ending December 2024 with theprevious year are available. Results for the first half of the fiscal year ended December 2023 are results from April to June 2023.

Note: This document is intended to serve as a press release to make available the information on the revision of operating and dividend forecast for the fiscal
year ending December 2024 (25th Period). This document should not be construed as an offer to sell or solicitation of an offer to purchase any investment
unit or other investment of JHR. Prospective investors are advised to make any investment decision at their own risk and responsibility. This press release
does not constitute an offer of securities in the United States. Securities may not be offered or sold in the United States without registration or an exemption
from registration under the United States Securities Act of 1933 (as amended). Any public offering of securities to be made in the United States will bemade 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, thesecurities referred to above will not be publicly offered or sold in the United States.

19

(3) OKINAWA HARBORVIEW HOTEL

Occupancy
Rate

ADR
(JPY)

RevPAR(JPY)

First halfof the year
Second halfof the year
Full year
First halfof the year
Second halfof the year
Full year
First halfof the year
Second halfof the year
Full year

Sales (JPY1M)
Rooms Dept.
F&B Dept.
OthersSales (JPY1M)
Rooms Dept.
F&B Dept.
OthersSales (JPY1M)
Rooms Dept.
F&B Dept.
OthersSecond halfof the year

GOP
(JPY1M)First halfof the year
Second halfof the year
Full year

First halfof the year

Full year

Fiscal year
ended December 2023
Comparison with
Results
previous year

Fiscal year
ending December 2024
Comparison with
Forecast
previous year

60.8%

12.0pt

70.6%

9.8pt

－

63.3%

1.2pt

81.8%

18.5pt

－

62.1%

6.6pt

76.2%

14.2pt80.1%

11,97536.3%

11,316(5.5%)－

12,43511.0%

14,016

12.7%－

12,212

20.3%

12,773

4.6%

26,529

7,277

70.0%

7,988

9.8%

－

7,876

13.1%

11,468

45.6%

－

7,579
1,089
464
595
30
1,296
510
765
21
2,385
974
1,360
51

34.5%
78.4%
70.0%
110.6%(45.2%)
24.7%
13.1%
34.6%
3.5%
44.5%
34.5%
59.8%
(32.3%)

9,738
1,261
512
718
31
1,696
743
909
45
2,958
1,255
1,627
76

28.5%
15.8%
10.4%
20.7%
3.7%
30.9%
45.6%
18.8%
117.2%
24.0%
28.8%
19.6%
49.7%

21,241
－
－
－
－
－
－
－
－
4,630
2,729
1,761
140

175

－

190

8.5%

－

245

65.6%

412

68.3%

－

420

311.7%

602

43.4%

1,728

TargetValues(Note) The comparison in GOP for the first half of the year ended December 2023 with the previous year is indicated as "-" because it isnegative.

Note: This document is intended to serve as a press release to make available the information on the revision of operating and dividend forecast for the fiscal
year ending December 2024 (25th Period). This document should not be construed as an offer to sell or solicitation of an offer to purchase any investment
unit or other investment of JHR. Prospective investors are advised to make any investment decision at their own risk and responsibility. This press release
does not constitute an offer of securities in the United States. Securities may not be offered or sold in the United States without registration or an exemption
from registration under the United States Securities Act of 1933 (as amended). Any public offering of securities to be made in the United States will bemade 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, thesecurities referred to above will not be publicly offered or sold in the United States.

20

(4) Southern Beach Hotel & Resort OKINAWA

Occupancy Rate

ADR
(JPY)

RevPAR(JPY)
Sales (JPY1M)
Rooms Dept.
F&B Dept.
OthersSales (JPY1M)
Rooms Dept.
F&B Dept.
OthersSales (JPY1M)
Rooms Dept.
F&B Dept.
OthersFirst halfof the year
Second halfof the year
Full year
First halfof the year
Second halfof the year
Full year
First halfof the year
Second halfof the year
Full year
First halfof the year

Second halfof the year

Full year

Fiscal year
ended December 2023
Comparison with
Results
previous year

Fiscal year
ending December 2024
Comparison with
Forecast
previous year

70.9%

26.9pt

74.9%

4.0pt

－

68.7%

(7.7pt)83.3%

14.6pt

－

69.8%

9.4pt

79.1%

9.3pt

80.2%

15,25018.6%

15,6792.8%－

20,97722.0%

21,873

4.3%－

18,091

15.8%

18,9584.8%

20,745

10,81791.1%

11,741

8.5%－

14,4079.7%

18,21926.5%－

12,627
1,399
877
478
44
1,841
1,188
600
54
3,240
2,065
1,078
98

33.9%
87.8%
91.1%
86.5%
47.4%
10.0%
9.7%
12.7%
(8.1%)
34.0%
33.9%
36.7%
10.6%

14,998
1,561
957
559
44
2,235
1,502
674
59
3,795
2,459
1,233
103

18.8%
11.5%
9.1%
16.9%
0.2%
21.4%
26.5%
12.3%
10.2%
17.1%
19.1%
14.4%
5.7%

16,631
－
－
－
－
－
－
－
－
4,150
2,762
1,281
107

TargetValues(Note) GOP is undisclosed since tenants that concluded the lease contract does not agree to disclose.

Note: This document is intended to serve as a press release to make available the information on the revision of operating and dividend forecast for the fiscal
year ending December 2024 (25th Period). This document should not be construed as an offer to sell or solicitation of an offer to purchase any investment
unit or other investment of JHR. Prospective investors are advised to make any investment decision at their own risk and responsibility. This press release
does not constitute an offer of securities in the United States. Securities may not be offered or sold in the United States without registration or an exemption
from registration under the United States Securities Act of 1933 (as amended). Any public offering of securities to be made in the United States will bemade 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, thesecurities referred to above will not be publicly offered or sold in the United States.

21