Ichigo Preserves and Improves Real Estate[Provisional Translation Only]
This English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

September 25, 2017
IssuerIchigo Hotel REIT Investment Corporation (3463)
1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Osamu Miyashita, Executive Director
www.ichigo-hotel.co.jp/english
Asset Management Company
Ichigo Investment Advisors Co., Ltd.
Representative: Wataru Orii, President
Inquiries: Hiroto Tajitsu, Head of Administration
Tel: +81-3-3502-4892

Ichigo Hotel REIT Operating Results – August 2017
Portfolio Revenue, RevPAR, Occupancy, and ADR
Total (20 Hotels – excludes Grandpark-Inn Yokohama)(Previous)
August2016 (B)

August2017 (A)Revenue(JPY million)
RevPAR (JPY)

Difference(A) - (B)YOY
Change

873.9

851.7

+22.3

+2.6%

8,050

7,852

+198

+2.5%

Occupancy (%)

93.9

91.4

+2.5

+2.8%

ADR (JPY)

8,572

8,594-22-0.3%

Variable Rent Hotels (12 Hotels)(Previous)
August2016 (B)

August2017 (A)Revenue(JPY million)
RevPAR (JPY)

Difference(A) - (B)YOY
Change

582.7

558.8

+23.9

+4.3%

9,077

8,707

+370+4.3%

Occupancy (%)

96.5

92.1

+4.4+4.8%

ADR (JPY)

9,406

9,458

-52

-0.6%

1

Fixed Rent Hotels (8 Hotels – excludes Grandpark-Inn Yokohama)(Previous)
August2016 (B)

August2017 (A)Difference(A) - (B)YOY
ChangeRevenue(JPY million)
RevPAR (JPY)

291.2

292.8

-1.6

-0.5%

6,640

6,683

-44-0.7%

Occupancy (%)

90.4

90.4-0.1-0.1%

ADR (JPY)

7,348

7,390-42-0.6%

Revenue, RevPAR, Occupancy, and ADR by Hotel
Variable Rent Hotels (12 Hotels)
August2017 (A)Smile Hotel
Kyoto Shijo

Hotel Vista
Premio Kyoto

Hotel Wing
International
NagoyaNest Hotel
SapporoEkimaeChisun Inn
Osaka
Hommachi

Nest Hotel
Sapporo Odori(Previous)
August2016 (B)

Difference(A) - (B)YOY
ChangeRevenue(JPY million)
RevPAR (JPY)

37.8

42.5

-4.7

-11.1%

8,204

9,403-1,199-12.8%

Occupancy (%)

99.9

100.0-0.1-0.1%

ADR (JPY)
Revenue(JPY million)
RevPAR (JPY)

8,209

9,401-1,192-12.7%

33.2

34.6

-1.4-4.2%

11,663

12,201-539-4.4%

Occupancy (%)

90.1

94.0-4.0-4.2%

ADR (JPY)
Revenue(JPY million)
RevPAR (JPY)

12,946

12,974

-28

-0.2%

52.1

36.9

+15.2

+41.2%

6,781

4,690

+2,091+44.6%

Occupancy (%)

97.3

79.7

+17.6

+22.0%ADR (JPY)
Revenue(JPY million)
RevPAR (JPY)

6,970

5,882

+1,088+18.5%

65.1

66.9-1.9-2.8%

11,59011,320+270+2.4%

Occupancy (%)

98.5

98.5––ADR (JPY)
Revenue(JPY million)
RevPAR (JPY)

11,765

11,494+272+2.4%

31.8

34.3-2.5-7.2%

7,886

8,501-614-7.2%

Occupancy (%)

95.5

89.9+5.7+6.3%

ADR (JPY)
Revenue(JPY million)
RevPAR (JPY)

8,255

9,458-1,203-12.7%

57.3

54.9+2.3+4.3%

14,021

13,576+445+3.3%

Occupancy (%)

97.7

97.1

+0.6

+0.6%

14,35813,986+372+2.7%

ADR (JPY)

2August2017 (A)Valie Hotel
TenjinNest HotelOsaka
Shinsaibashi

Smile HotelTokyo Asagaya

Nest Hotel
Naha

Smile Hotel
Asakusa

Nest Hotel
Matsuyama(Previous)
August2016 (B)

Difference(A) - (B)YOY
ChangeRevenue(JPY million)
RevPAR (JPY)

23.5

22.8

+0.7+3.1%

9,118

8,878+241+2.7%

Occupancy (%)

94.3

85.7+8.7+10.1%

ADR (JPY)
Revenue(JPY million)
RevPAR (JPY)

9,665

10,363-698

-6.7%

93.0

87.6+5.5+6.2%

9,183

8,566+618+7.2%

Occupancy (%)

98.4

93.8+4.6+4.8%

ADR (JPY)
Revenue(JPY million)
RevPAR (JPY)

9,334

9,128+205+2.3%

30.4

28.1+2.3+8.2%

8,525

7,873+652+8.3%

Occupancy (%)

98.9

98.7+0.2+0.2%

ADR (JPY)
Revenue(JPY million)
RevPAR (JPY)

8,619

7,976

+642

+8.1%

90.2

86.2

+3.9+4.6%

11,44011,308+132+1.2%

Occupancy (%)

95.2

95.5

-0.3

-0.4%

ADR (JPY)
Revenue(JPY million)
RevPAR (JPY)12,021

11,840+181

+1.5%

20.4

20.7

-0.3

-1.5%

6,573

6,727-154-2.3%

Occupancy (%)

95.8

93.0+2.8+3.0%

ADR (JPY)
Revenue(JPY million)
RevPAR (JPY)

6,864

7,235-371

-5.1%

48.0

43.3

+4.7

+10.8%

5,702

5,174+528+10.2%

Occupancy (%)

92.3

84.4+8.0+9.4%

ADR (JPY)

6,175

6,132

+43+0.7%3

Fixed Rent Hotels (8 Hotels)
August2017 (A)

Comfort Hotel
Hamamatsu

Comfort Hotel
CentralInternational
Airport

Comfort Hotel
Okayama

Comfort Hotel
KushiroComfort Hotel
SuzukaUrbainHiroshima
Executive
Other (Hotel
Suave Kobe
Asuta &Hotel Livemax
NihombashiHakozaki)(Previous)
August2016 (B)

Difference(A) - (B)YOY
ChangeRevenue(JPY million)
RevPAR (JPY)

33.7

34.5

-0.7

-2.1%

5,553

5,673-120-2.1%

Occupancy (%)

84.6

85.7

-1.1-1.3%

ADR (JPY)
Revenue(JPY million)
RevPAR (JPY)

6,565

6,620

-55

-0.8%

103.4

98.7

+4.7

+4.7%

8,683

8,239+444+5.4%

Occupancy (%)

93.5

91.9

+1.7

+1.8%

ADR (JPY)
Revenue(JPY million)
RevPAR (JPY)

9,283

8,967+316

+3.5%

43.2

44.9

-1.7-3.8%

6,457

6,705-248-3.7%

Occupancy (%)

92.2

90.6+1.7+1.8%

ADR (JPY)
Revenue(JPY million)
RevPAR (JPY)

7,001

7,404-403

-5.4%

26.0

24.4+1.7+6.8%

6,662

5,900+762+12.9%

Occupancy (%)

89.3

89.2

+0.1

+0.1%

ADR (JPY)
Revenue(JPY million)
RevPAR (JPY)

7,458

6,611+847+12.8%

19.7

20.0

-0.2

-1.1%

6,005

6,037

-32

-0.5%

Occupancy (%)

92.6

89.5+3.2+3.5%

ADR (JPY)
Revenue(JPY million)
RevPAR (JPY)

6,483

6,748-265-3.9%

Occupancy (%)

92.4

ADR (JPY)
Revenue(JPY million)
RevPAR (JPY)

7,280
24.6

27.5

-2.9

-10.5%

4,392

4,909

-516

-10.5%

Occupancy (%)

85.9

86.2

-0.2

-0.3%

ADR (JPY)

5,112

5,698

-586

-10.3%

36.4
6,725

4

Notes:1. The above data are as provided by the hotel operators or as calculated by Ichigo
Investment Advisors based on information provided by the hotel operators. The data
have not been audited and thus its accuracy cannot be guaranteed and may not matchdata disclosed in future releases.
2. Revenue is revenue from accommodations and related services only. Rent from retailtenants at Hotel Vista Premio Kyoto, Chisun Inn Osaka Hommachi, and Smile HotelTokyo Asagaya is not included.
3. RevPAR (Revenue Per Available Room) is calculated with the following formula:
RevPAR = Total Revenue from accommodations (excluding restaurant charges andother service fees) / number of available guest rooms.
4. Occupancy is calculated with the following formula:
Occupancy = Total number of guest rooms occupied during the period /(total number of guest rooms * number of days hotel was in operation during theperiod)
Occupancy may exceed 100% in the following cases: 1) a guest had pre-paid for aguest room but checked out early, allowing the guest room to be occupied by adifferent guest; or 2) a guest room is occupied for less than one day by different
guests.
5. ADR (Average Daily Rate) is calculated with the following formula:
ADR = Total revenue from accommodations (excluding restaurant charges and otherservice fees) / number of guest rooms occupied during the period.
6. Data for Urbain Hiroshima Executive prior to its acquisition in August 2017 is notdisclosed, because the hotel operator did not provide consent to disclose
hotel-specific data.
7. Data for two hotels, Hotel Suave Kobe Asuta and Hotel Livemax NihombashiHakozaki, are consolidated under Other, because the hotel operators did not provide
consent to disclose hotel-specific data.
8. While Hotel Suave Kobe Asuta’s lease contract includes a variable rent clause, it has
never been triggered. Because Ichigo Hotel REIT does not anticipate receiving
variable rent at this hotel, it has been classified as a fixed rent hotel.
9. Grandpark-Inn Yokohama, acquired in March 2017, is excluded from the above data
because the hotel operator did not give consent to disclose hotel-specific data thatwould allow for year-on-year comparisons.

Explanation of Changes
At variable rent hotels, which are a more significant contributor to Ichigo Hotel REIT’s
earnings, revenue and RevPAR increased at eight of the twelve hotels. As a result,Revenue, RevPAR, and Occupancy increased year-on-year at variable rent hotels andthe total portfolio.
Driving the year-on-year increases in Revenue and RevPAR were Hotel Wing
International Nagoya (which had fewer available rooms last August because ofrenovations); Smile Hotel Tokyo Asagaya, which had a positive response to guest room
renovations; Nest Hotel Osaka Shinsaibashi, which converted rooms with one double
bed into rooms with two single beds (thereby increasing guest demand); and Nest Hotel
Sapporo Odori, which converted non-revenue-generating space into guest rooms andsplit up a suite into three guest rooms.

5

Value-Add Actions
Ichigo Hotel REIT completed renovation work at Nest Hotel Matsuyama to create aguest laundry room and introduce ice machines. Given the strong demand for laundry
facilities from athletic teams and other guests staying for multiple nights, thisrenovation will raise guest satisfaction and drive higher levels of group tour businessand revenue through laundry fees.
Ichigo Hotel REIT will continue to work closely with its hotel operator partners incarrying out value-add capex that drives higher earnings.

6