August 28, 2024

FOR IMMEDIATE RELEASE
Company Name: Polaris Holdings Co., Ltd.
Representative: Takahiro Tsujikawa
President & CEO
Stock Listing:Tokyo Stock Exchange, Standard Section
Stock Code: 3010

Inquiries:Takashi Handa
Director and CFO(TEL: 03-5822-3010)

Polaris Continues to Grow Rooms Under Management andWill Operate Additional Hotel in Kyoto City
Polaris Holdings Co., Ltd. (hereinafter “Polaris” or the “Company”) announced today that Fino Hotels Co., Ltd. (hereinafter"Fino Hotels”), a subsidiary of the Company, resolved to execute a Memorandum of Understanding for Hotel Management(hereinafter the “MOU”) regarding operating a hotel property in Kyoto city (hereinafter the “Property”) with Star Asia
Management LLC (hereinafter “SAM LLC”), the Company of the parent company group “Star Asia Group”. The Property will
be newly acquired by Star Asia Group.
1. Execution of the MOU(1) Background leading to the execution of the MOU
Star Asia Group plans to acquire the Property located in the center of Kyoto City, and the Company has decided toexecute an MOU with Star Asia Group in order to execute a hotel management agreement that will make Polaris Groupthe hotel operator of the Property. The execution of the MOU will further enhance synergies through collaboration in theecosystem with Star Asia Group.
To further expand its operating platform based on the growth strategy formulated in the medium-term management
plan, Polaris Group has been proactively undertaking new hotel management projects from both Star Asia Group andthird-party hotel owners and has now increased the number of rooms under management from 3,109 to 8,657 fromMarch 31, 2020 to April 30, 2024. Upon the execution of the hotel management agreement of the Property, Polaris’smanagement platform will further expand.
The Company plans to operate the Property under a fee-based management contract and believes that this new operation
will not only lower the break-even point of Polaris Group's business but also improve its earnings, ROE, and shareholdervalue.
The Property is conveniently located in Kyoto, a popular destination for leisure travelers worldwide. Polaris Groupcurrently operates “KAYA Kyoto Nijo Castle, BW Signature Collection by Best Western” in Kyoto City and will be able
to pursue further economies of scale and operational efficiency with the new hotel management mandate of the Property.
-1-The Property will be operated as a hotel under the “KOKO HOTEL Residence” brand and will contribute to further
expansion of the Group's portfolio and increase brand recognition of its proprietary “KOKO Hotel” brand. . Since theProperty is an existing property that has already been completed, Polaris expects to begin hotel operations and generate
revenues during this fiscal year.
(2) Overview of the Property
Hotel names are undisclosed since Star Asia Group is in the final process of acquiring the Property from the current
property owner.
(3) Overview of SAM LLC① Name② Location
Name and title of③
representative④ Business Description⑤ Capital stock⑥ Date of establishment
Major shareholders⑦ and their shareholdingratios

Star Asia Management LLC
251 Little Falls Drive, Wilmington, County of New Castle, Delaware 19808, USA
Director: Malcolm F. MacLean IV, Taro Masuyama
Investment advisory business and investment management business
US$50,000
December 18, 2019.
Star Asia Group LLC (100%)

SAM LLC has no direct capital relationship with Polaris, but it is a
subsidiary of Polaris's parent company.
Malcolm F. MacLean IV and Taro Masuyama, who are Directors of
PersonalPolaris, are also Directors of SAM LLC. In addition, two members
Relationship between
Relationsof Star Asia Group, the parent company group, have also been
⑧ Polaris
andtheappointed as directors of Polaris.
company in question
Business
Polaris and SAM LLC have entered into a business alliance
Relationshipagreement and have formed a business partnership.
Status as a As the parent company of Polaris and SAM LLC are the same,
related party
SAM LLC is a related party of Polaris.
Capital ties

2. Schedule (Planned)① Execution of the MOU② Execution of hotel management agreement③ Start of Hotel Operation

August 28, 2024
Around November - December 2024
Around December 2024 - January 2025

3. Outlook

With the execution of the MOU, the parties will look to promptly finalize and conclude the definitive hotel managementagreement for the Property. Until the execution of the management agreement, the impact of the MOU on the Company’s
consolidated business performance is negligible. If any matter requiring disclosure arises in the future, the Company willpromptly announce it.
EndNOTE: This is an English translation summary of the Company’s announcement in Japanese. No assurances or warranties aregiven for completeness or accuracy of this English translation summary.

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