[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. December 26, 2022 Issuer Ichigo Hotel REIT Investment Corporation (“Ichigo Hotel,” 3463) 1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo Representative: Eriko Ishii, Executive Director www.ichigo-hotel.co.jp/en Asset Management Company Ichigo Investment Advisors Co., Ltd. Representative: Hiroshi Iwai, President Inquiries: Hidehito Iwasaka, Head of Ichigo Hotel Tel: +81-3-3502-4892
Ichigo Hotel Operating Results – November 2022
Portfolio Revenue, RevPAR, Occupancy, and ADR Total (23 Hotels)
Variable Rent Hotels (15 Hotels)
Fixed Rent Hotels (8 Hotels)
Revenue, RevPAR, Occupancy, and ADR by Hotel
Fixed Rent Hotels (7 Hotels – excludes Hotel Livemax Nihombashi-Hakozaki)
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 their accuracy cannot be guaranteed and may not match data disclosed in future releases. 2. Revenue is revenue from accommodations and related services only. Rent from retail tenants at The OneFive Osaka Sakaisuji, Hotel Wing International Kobe Shin Nagata Ekimae, and Smile Hotel Tokyo Asagaya, and rent from the banquet hall at the Nest Hotel Kumamoto are not included. 3. RevPAR (Revenue Per Available Room) is calculated with the following formula: RevPAR = Total Revenue from accommodations (excluding restaurant charges and other 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 the period) Occupancy may exceed 100% in the following cases: 1) a guest had pre-paid for a guest room but checked out early, allowing the guest room to be occupied by a different 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 other service fees) / number of guest rooms occupied during the period 6. The Capsule Plus Yokohama and the Washington Hotel Plaza Shimonoseki Eki Nishi are excluded from the above data because the hotel operators did not give consent to disclose hotel-specific data that would allow for year-on-year comparisons. Data for the Hotel Livemax Nihombashi-Hakozaki are included in the total and fixed rent hotels data above, but not separately disclosed because the hotel operator did not provide consent to disclose hotel-specific data. 7. Hiroshima Prefecture has temporarily leased all rooms of the Valie Hotel Hiroshima starting on February 8, 2021. 8. Aichi Prefecture has temporarily leased all rooms of the Hotel Wing International Nagoya starting on January 28, 2022. 9. Kumamoto Prefecture has temporarily leased all rooms of the Nest Hotel Kumamoto starting on February 1, 2022. 10. Tochigi Prefecture has temporarily leased the rooms of the Hotel Sunshine Utsunomiya starting on February 15, 2022. 11. Pre-acquisition data for acquired hotels are based on data received from the previous owners. 12. November 2019 Revenue, RevPAR, Occupancy, and ADR data provided as a reference is for the 20 hotels owned since November 2019, and is not available for The OneFive Tokyo Shibuya, Comfort Hotel Nagano, and Hotel Sunshine Utsunomiya. The OneFive Okayama was operating under the name Comfort Hotel Okayama in November 2019, and hotel data is included as a fixed rent hotel.
Explanation of Changes
November 2022 Revenue, RevPAR, Occupancy, and ADR increased significantly year- on-year due to a recovery in demand from business travelers on weekdays, recovery in domestic tourism from various events and a domestic travel subsidy program by the Japanese government, as well as a significant recovery in inbound tourism demand due to the lifting of overseas travel restrictions. RevPAR marked the highest since March 2020. The occupancy of Ichigo Hotel's 23 hotels has recovered to the pre-Covid levels of November 2019, while RevPAR and ADR are close to 90% of the same period. Ichigo Hotel expects a further recovery in demand driven by the extension of a domestic travel subsidy program and a recovery in foreign tourist demand.
Value-Add Actions
As part of initiatives to drive hotel competitiveness, Ichigo Hotel has opened the Comfort Library Café at the Comfort Hotel Hamamatsu (Hotel Operator: Greens Co., Ltd.). The café offers beverages and over 100 books selected by a book expert and is available for use by guests free of charge. Guests can work, read, and relax in the open space, which has been popular amongst guests. Ichigo Hotel will continue to work closely with hotel operators to increase guest