[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  14,  2020 Issuer Ichigo Hotel REIT Investment Corporation (“Ichigo Hotel,” 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: Hiroshi Iwai, President Inquiries: Hidehito Iwasaka, Head of Ichigo Hotel Tel: +81-3-3502-4892
July 2020 Fiscal Period Earnings Results Versus Forecast
and Earnings Forecast Revision for the January 2021 Fiscal Period
Because Ichigo Hotel's July 2020 earnings results announced today differed from its forecast in the April 27, 2020 release "Earnings Forecast Revision for the July 2020 Fiscal Period," Ichigo Hotel is detailing the difference between the results and the forecast below. Ichigo Hotel is also revising its January 2021 fiscal period earnings forecast announced in the July 28, 2020 release "Earnings Forecast Revision for the January 2021 Fiscal Period."
1. July 2020 Earnings Results vs. Forecast Period-end number of shares outstanding: 254,974 shares

2. January 2021 Earnings Forecast Revision
Period-end number of shares outstanding: 254,974 shares Note: The new forecast is based on the "Preconditions for the January 2021 Earnings Forecast" below. Actual results may vary due to changes in circumstances, so these forecasts should not be construed as a guarantee of such results. Ichigo Hotel will make a forecast revision should a material discrepancy emerge between this forecast and results.
3. July 2020 Earnings Results and January 2021 Earnings Forecast Revision Rationale
July 2020 Earnings Results
Covid-19 restrictions on travel and public gatherings are resulting in cancellations by both Japanese and inbound guests, significantly lowering hotel demand. As a result, Ichigo Hotel temporarily closed 9 of its 23 hotels in May. Given these conditions, Ichigo Hotel has been discussing easing rental payments with multiple hotel operators, and agreed with one hotel operator to lower its current rent while adjusting upward its forward variable rent. In addition, having reviewed with another operator its current lease terms, Ichigo Hotel agreed to return the operator's variable rent payments from January through July 2020. July 2020 operating revenue thus came in JPY 85 million (-8.2%) below the previous forecast announced on April 27, 2020, of which fixed rent accounts for JPY 18 million and variable rent for JPY 67 million. Operating profit, net income, and the dividend were also below the previous forecast by JPY 60 million (-13.9%), JPY 51 million (-22.9%), and JPY 203 (-23.3%), respectively.
January 2021 Earnings Forecast Revision Rationale
Although some hotels resumed operations after the lifting of Japan's nationwide state of emergency in May, the recovery of both Japanese and inbound demand is expected to take time. Given these conditions, Ichigo Hotel is conservatively adjusting its forecast for variable rents and the impact of the operator change at the Valie Hotel Tenjin, and revising down its January 2021 fiscal period (August 1, 2020 – January 31, 2021) earnings forecast. January 2021 operating revenue is forecast to come in below the previous forecast by JPY 70 million (-6.3%), of which fixed rent accounts for JPY 50 million and variable rent for JPY 20 million. Operating profit and net income are forecast below the previous forecast by JPY 54 million (-11.4%) and JPY 57 million (-22.0%), respectively. Given the reduced earnings, Ichigo Hotel is also lowering its dividend forecast by JPY 220 (-21.6%). Should changing Covid-19 conditions generate the need to adjust this forecast, Ichigo Hotel will promptly disclose the details.