Japan Hotel REIT Investment : Notice Concerning Revision of Operating Forecast for the Fiscal Year Ended December 2019 (20th Period), and Operating Forecast and Forecast of Dividend for the Fiscal Year Ending December 2020 (21st Period)

January 10, 2020 at 07:13 am

This English translation is provided for information purposes only. If any discrepancy is identified between this translation and the Japanese original, the Japanese original shall prevail.

January 10, 2020

REIT Issuer:

Japan Hotel REIT Investment Corporation (TSE code: 8985)

Kaname Masuda, Executive Director

Asset Management Company:

Japan Hotel REIT Advisors Co., Ltd.

Hisashi Furukawa, President & CEO

Contact:

Makoto Hanamura

Executive Director

Head of Planning Group, Operations Division

TEL: +81-3-6422-0530

Notice Concerning Revision of Operating Forecast for the Fiscal Year Ended December 2019 (20th Period), and Operating Forecast and Forecast of Dividend for the Fiscal Year Ending December 2020 (21st Period)

Japan Hotel REIT Investment Corporation (hereinafter called "JHR") informs you of the revision of the operating forecast for the full fiscal year ended December 2019 (January 1, 2019 through December 31, 2019), which was announced in the "Midterm Financial Report for the Fiscal Year Ending December 31, 2019 (January 1, 2019 - June 30, 2019)," dated August 22, 2019, and newly informs you of the operating forecast and forecast of dividend for the fiscal year ending December 2020 (January 1, 2020 through December 31, 2020) as follows.

1. Revision of the operating forecast for the full fiscal year ended December 2019 (January 1, 2019 through December 31, 2019)

Dividend per unit

Operating

Ordinary

Net income

(Excess of

resulting from

revenue

income

earnings

excess of

exclusive)

earnings

Previous forecast

JPY1M

JPY

(A)

28,666

17,227

15,274

15,273

3,686

－

Revised forecast

JPY1M

JPY

(B)

28,274

17,168

15,274

15,273

3,686

－

Variance

JPY1M

JPY

(391)

(58)

－

Variance ratio

(D) = (C) / (A)

(1.4)

(0.3)

0.0

－

(Reference)

Forecast of net income per unit for the full fiscal year: ¥3,444

(Calculated based on the average number of investment units during the period (4,434,849 units))

(*1)

Dividend per unit is calculated based on the number of investment units issued as of today: 4,462,347 units.

(*2)

Total dividend is planned to be an amount of net income plus the reversed amount of reserve for temporary difference

adjustment in the amount of ¥1,178 million.

(*3)

For the assumptions of the operating forecast and dividend forecast above, please refer to "

Assumptions of the operating forecast for the full fiscal year ended December 2019 (20th period)" below.

(*4)

Amounts are rounded down to the nearest millions of yen and percentages are rounded off to the nearest first 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 forecast for the fiscal year ended December 2019 (20th period) and operating forecast and forecast of dividend for the fiscal year ending December 2020 (21th period). This document should not be construed as an offer to sell or solicitation of an offer to purchase any investment units or other investment of JHR. Prospective investors are advised to make any investment decisions at their own risk and responsibility.

2. Operating forecast and forecast of dividend for the full fiscal year ending December 2020 (January 1, 2020 through December 31, 2020)

Dividend per unit

Operating

Ordinary

Net income

(Excess of

resulting from

revenue

income

earnings

excess of

exclusive)

earnings

Fiscal year ending

December 2020

JPY1M

JPY

Midterm

13,539

7,895

6,972

－

Fiscal year ending

December 2020

JPY1M

JPY

Full year

29,971

18,128

16,239

16,238

3,750

－

(Reference)

Forecast of net income per unit for the full fiscal year: ¥3,638

(Calculated based on the forecast of the average number of investment units during the period (4,462,347 units))

(*1)

The number of investment units issued as of today is 4,462,347 units.

(*2)

Total dividend is planned to be an amount of net income plus the reversed amount of reserve for temporary difference

adjustment in the amount of ¥496 million.

(*3)

For the assumptions of the operating forecast and dividend forecast above, please refer to "

Assumptions of the operating forecast for the full fiscal year ending December 2020 (21st period)" below.

3. Rationale for the revisions of the operating forecast for the full fiscal year ended December 2019 (January 1, 2019 through December 31, 2019)

While the lodging demand was stable due to the increase in number of inbound visitors, etc., some hotels owned by JHR were affected by new supply, a decrease in the number of inbound visitors from South Korea, and a series of natural disasters. Therefore, variable rent and income from management contract are expected to decrease. As a result, JHR expects a decrease in operating revenue by ¥391 million compared to the previous forecast.

On the other hand, JHR expects a decrease in operating expenses by ¥332 million and financial costs, etc. by ¥58 million as a result of reviewing various expenses related to properties and other operating expenses, etc. As a result, the net income for the fiscal year ended December 2019 (20th period) remains unchanged.

For the detailed information of the operating result for the hotels with variable rent, please refer to " Hotel operation indexes, sales and GOP (*)" below.

GOP is Gross Operating Profit, which is the remainder after operating expenses are deducted from total sales. Operating expenses are expenses such as personnel costs and general and administrative expenses, etc., incurred from hotel operation. The same shall apply hereinafter.

4. Highlights of the operating forecast and forecast of dividend

Comparison and the major factors causing the variance between the operating forecast and forecast of dividend (previous forecast) for the full fiscal year ended December 2019, which was released in the "Midterm Financial Report for the Fiscal Year Ending December 31, 2019 (January 1, 2019 - June 30, 2019)" dated August 22, 2019, and the operating forecast and forecast of dividend for the full fiscal year ended December 2019 announced this time

				FY12/2019
				(20th Period)
			Previous	Forecast This
			Forecast
			Time
			(*1)
			(B)
			(A)

Properties	No. of Properties		43	43
Acquisition Price			374,508	374,508


	Operating Revenue		28,666	28,274
	Real Estate Operating		28,666	28,274
	Revenue

	Fixed Rent, etc.		Composition	Composition
		59.7%	17,102	60.5% 17,099

	Variable Rent	40.3%	11,563	39.5% 11,174
Profit
and
Gain on Sale of		-	-
Loss
Real Estate Properties
	NOI (*3)		24,298	24,081
	NOI Yield		6.5%	6.4%
	NOI after Depreciation		19,411	19,306
	(*3)

	NOI Yield after		5.2%	5.2%
	Depreciation
	Operating Income		17,227	17,168
	Ordinary Income		15,274	15,274
	Net Income		15,273	15,273

	Reserve for Temporary		1,177	1,178
	Difference Adjustments
	(Negative Goodwill)
Dividend	Total Dividends		16,448	16,448
	Number of Units Issued	4,462,347	4,462,347
	(Unit)

	Dividend per Unit (JPY)		3,686	3,686

(Unit: millions of yen)

Comparison

with the

PreviousFactors Causing Variance

Forecast

(B)-(A) %

(1.4%)

(1.4%)

(0.0%)

1. Decrease in variable rent, etc. from The 21 Hotels with Variable Rent, etc. (*2) and Hotel Oriental Express Osaka Shinsaibashi by JPY581 MM
(3.4%) 2. Increase in variable rent from Oriental Hotel Fukuoka Hakata Station by JPY28 MM
1. Increase in rent from other hotels with revenue sharing, etc. by JPY164 MM

- -

(0.9%)

(0.1%)

(0.5%)

(0.0%)

(0.3%)

0.0%
0.0%

Amount to be reversed from reserve for temporary

0.1% difference adjustments

50-year amortization amount of negative goodwill: JPY262 MM

- Correspondence to loss on retirement of noncurrent assets:JPY248 MM Correspondence to large-scale renovation works at Oriental Hotel
- Fukuoka Hakata Station: JPY357 MM
- Correspondence to dilution: JPY310 MM

(*1) Stating the operating forecast and forecast of dividend for the full fiscal year ended December 2019, which was released in the "Midterm Financial Report for the Fiscal Year Ending December 31, 2019 (January 1, 2019 - June 30, 2019)" dated August 22, 2019.

(*2) The 21 Hotels with Variable Rent, etc. represent the 21 hotels comprising the Eleven HMJ Hotels plus ibis Tokyo Shinjuku, ibis Styles Kyoto Station, ibis Styles Sapporo, Mercure Sapporo, Mercure Okinawa Naha, Mercure Yokosuka, the b ikebukuro, the b hachioji, the b hakata and the b suidobashi. The Eleven HMJ Hotels are Kobe Meriken Park Oriental Hotel, Oriental Hotel tokyo bay, Namba Oriental Hotel, Hotel Nikko Alivila, and Oriental Hotel Hiroshima (hereinafter called "the Five HMJ Hotels"), plus Okinawa Marriott Resort & Spa, Sheraton Grand Hiroshima Hotel (ACTIVE-INTER CITY HIROSHIMA), Holiday Inn Osaka Namba, Hilton Tokyo Narita Airport, International Garden Hotel Narita, and Hotel Nikko Nara. With regard to Oriental Hotel Fukuoka Hakata Station (formerly Hotel Centraza Hakata), due to large-scale renovation works causing the suspension of hotel operation (hereinafter called the "Renovation") were implemented from October 1, 2018 to April 8, 2019, figures for Oriental Hotel Fukuoka Hakata Station are not included in the calculation of the 21 Hotels with Variable Rent, etc. as hotel operation was suspended during the Renovation. Moreover, the 12 hotels comprising the Eleven HMJ Hotels plus Oriental Hotel Fukuoka Hakata Station are hereinafter called the "Twelve HMJ Hotels." The same shall apply hereinafter.

(*3) 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 on retirement of noncurrent assets + Asset retirement obligations expenses

NOI yield = NOI ÷ acquisition price

NOI after depreciation = Real estate operating revenue - Real estate operating costs NOI yield after depreciation = NOI after depreciation ÷ acquisition price

Comparison and the major factors causing the variance between the operating result and dividend (actual) for the full fiscal year ended December 2018 and the operating forecast and forecast of dividend for the full fiscal year ended December 2019

									(Unit: millions of yen)
2018	2019		Comparison
	Forecast		with the				Oriental
Actual		Previous Period		Three		Factors Causing Variance
This Time		Properties	Hotel	Existing
				Properties
					Acquired in	Fukuoka	Properties
(A)	(B)		(B)-(A)	%	2019 (*1)	Sold in	Hakata	(*4)
	2018 (*2)
							Station (*3)

Properties			No. of Properties	41	43
		Acquisition Price	309,370	374,508


			Operating Revenue	28,253	28,274
		Real Estate Operating	26,318	28,274
			Revenue

			Fixed Rent, etc.	14,788	17,099
			Composition	56.2%	60.5%
			Variable Rent	11,529	11,174
			Composition	43.8%	39.5%
Profit			Gain on Sale of
and
		Real Estate	1,934	-
Loss
		Properties
Statement
			NOI	22,104	24,081
			NOI Yield	7.1%	6.4%
	NOI after Depreciation	17,974	19,306
			NOI Yield after	5.8%	5.2%
			Depreciation

			Operating Income	17,993	17,168
			Ordinary Income	16,211	15,274
			Net Income	16,210	15,273

2		2	-		-
65,138	21.1%	65,138	-		-

20	0.1%	2,374	(2,214)	141	(280)
1,955	7.4%	2,374	(279)	141	(280)

2,310	15.6%	2,367	(199)	0	142

						1. Decrease in variable rent, etc. from the 21 Hotels
(355)	(3.1%)	6	(79)	141	(423)	with Variable Rent, etc. by JPY550 MM
2. Increase in rent from other hotels with revenue
						sharing, etc. by JPY127 MM

(1,934)	-	-	(1,934)	0	-

1,977	8.9%	2,367	(251)	141	(280)
(0.7%)
1,331	7.4%	2,171	(216)	(192)	(430)

(0.7%)

(4.6%)

(5.8%)

(5.8%)

	Reserve for Temporary	563	1,178
	Difference Adjustments
	(Negative Goodwill)
	Reserve for Special Advanced	(1,174)	-
Dividend	Depreciation

Total Dividends	15,602	16,448

	Number of Units Issued	4,010,847	4,462,347
	(Unit)

	Dividend per Unit (JPY)	3,890	3,686

614 109.1%

1,174 -

846 5.4%

451,500 11.3%

(5.2%)

Amount to be reversed from reserve for temporary difference adjustments

2018:

50-year amortization amount of negative goodwill: JPY262 MM Correspondence to loss on retirement of noncurrent assets:JPY35 MM

Correspondence to large-scale renovation works at Oriental Hotel Fukuoka Hakata Station: JPY265 MM 2019:

50-year amortization amount of negative goodwill: JPY262 MM Correspondence to loss on retirement of noncurrent assets:JPY248 MM

Correspondence to large-scale renovation works at Oriental Hotel Fukuoka Hakata Station: JPY357 MM

Correspondence to dilution: JPY310 MM

(*1) Stating the amount of the impact by Hotel Oriental Express Osaka Shinsaibashi and Hilton Tokyo Odaiba, which were acquired during the fiscal year ended December 2019. The same shall apply hereinafter.

(*2) Stating the amount of the impact of R&B Hotel Higashi-nihonbashi, the b akasaka-mitsuke and the b ochanomizu, which were sold during the fiscal year ended December 2018. The same shall apply hereinafter.

(*3) Large-scale renovation works causing the suspension of hotel operation were implemented at Oriental Hotel Fukuoka Hakata Station from October 1, 2018 to April 8, 2019. Stating the amount of impact of the Renovation. In accordance with the Renovation, ¥202 million of loss on retirement of noncurrent assets was recorded in the fiscal year ended December 2019 (20th Period). However, the amount recognized as the 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. The same shall apply hereinafter.

(*4) "The existing properties" above refers to 40 properties which excludes Hotel Oriental Express Osaka Shinsaibashi, Hilton Tokyo Odaiba, both bought during fiscal year ended December 2019, and Oriental Hotel Fukuoka Hakata Station from 43 properties owned by JHR as of today. The same shall apply hereinafter.

Comparison and the major factors causing the variance between the operating forecast and forecast of dividend for the full fiscal year ended December 2019 and the operating forecast and forecast of dividend for the full fiscal year ending December 2020

							(Unit: millions of yen)
2019	2020		Comparison with
			Oriental
Forecast	Forecast		the Previous
	Hotel		Factors Causing Variance
This Time	This Time		Period	Properties	Existing
	Acquired in	Fukuoka
(A)	(B)			2019	Hakata	Properties
	(B)-(A)	%	Station

Properties		No. of Properties	43	43
	Acquisition Price	374,508	374,508


		Operating Revenue	28,274	29,971
		Real Estate	28,274	29,971
		Operating Revenue

		Fixed Rent, etc.	17,099	17,987
		Composition	60.5%	60.0%
		Variable Rent	11,174	11,984
Profit		Composition	39.5%	40.0%

and		Gain on Sale of
Loss		Real Estate	-	-
Statement		Properties
		NOI	24,081	25,273
		NOI Yield	6.4%	6.7%
	NOI after Depreciation	19,306	20,392
		NOI Yield after	5.2%	5.4%
		Depreciation

		Operating Income	17,168	18,128
		Ordinary Income	15,274	16,239
		Net Income	15,273	16,238

-		-	-	-
-		-	-	-

1,696	6.0%	951	489	255
1,696	6.0%	951	489	255

887	5.2%	842	25	19

					1. Increase in variable rent, etc. from the 20 Hotels with Variable
					Rent, etc. (*1) by JPY571 MM
					2. Decrease in variable rent from Namba Oriental Hotel by
809	7.2%	108	464	235	JPY320 MM
		(*2)			3. Decease in rent from other hotels with revenue sharing, etc. by
				JPY14 MM

-	-	-	-	-

1,191	4.9%	670	481	39
0.3%			(*3)
1,085	5.6%	530	628	(73)
0.3%			(*3)

959 5.6%

964 6.3%

	Reserve for Temporary	1,178	496
	Difference Adjustments
	(Negative Goodwill)

Dividend	Total Dividends	16,448	16,733

	Number of Units Issued	4,462,347	4,462,347
	(Unit)

	Dividend per Unit (JPY)	3,686	3,750

(57.8%)

285 1.7%

- -

64 1.7%

Amount to be reversed from reserve for temporary difference adjustments 2019:

50-year amortization amount of negative goodwill: JPY262 MM

Correspondence to loss on retirement of noncurrent assets: JPY248 MM

Correspondence to large-scale renovation works at Oriental Hotel Fukuoka Hakata Station: JPY357 MM

Correspondence to dilition: JPY310 MM

2020:

50-year amortization amount of negative goodwill: JPY262 MM Correspondence to loss on retirement of noncurrent assets:JPY18 MM Correspondence to large-scale renovation works at Hilton Tokyo Odaiba: JPY44 MM Correspondence to large-scale renovation works at Namba Oriental Hotel: JPY172 MM

(*1) Namba Oriental Hotel is scheduled to implement large-scale renovation with the suspension of hotel operation from November 2020 to March 2021. Figures for Namba Oriental Hotel are not included in the calculation of the 21 Hotels with Variable Rent, etc. as hotel operation was suspended during the planned renovation. The 20 Hotels with Variable Rent, etc. represent 20 hotels, excluding Namba Oriental Hotel from The 21 Hotels with Variable Rent, etc. The same shall apply hereinafter.

(*2) Taking into consideration the negative impact on variable rent (negative ¥44 million) due to the suspension of part of room sales associated with the implementation of large-scale renovation works scheduled from September to December 2020 at Hilton Tokyo Odaiba.

(*3) In accordance with the renovation at Oriental Hotel Fukuoka Hakata Station, ¥202 million of loss on retirement of noncurrent assets was recorded in the fiscal year ended December 2019 (20th Period).

(Note)

The above is the forecasts based on status of operation as of today, and actual dividend per unit may fluctuate. This forecast does not guarantee the amount of dividend shown above.

* Website of Japan Hotel REIT Investment Corporation: http://www.jhrth.co.jp/en/

Assumptions of the operating forecast for the full fiscal year ended December 2019 (20th period)

Item	Assumptions
Calculation	・ Full fiscal year ended December 2019 (20th Period): January 1, 2019 through December 31, 2019 (365
Period	days)
Assets under	・ 43 properties owned by JHR as of the end of December 2019 are assumed.
Management

Operating revenue is calculated based on the lease and other contracts which were effective during the fiscal year ended December 2019 and in consideration of competitiveness of hotels, market environment and other factors. If there are lease contracts with regard to facilities other than hotels, such as retail facilities and offices, operating revenue calculated on the said lease contracts is included.
Rents, etc. of the main hotels are calculated based on the following assumptions.

The 21 Hotels with Variable Rent, etc.

① The Twelve HMJ Hotels

The assumptions of the fixed rent and variable rent for the Twelve HMJ hotels are as follows. Total rent = Fixed rent + Variable rent

Variable rent = (Total GOP of the hotels - GOP base amount) × Variable rent ratio (%)

										(Unit: millions of yen)
					Total GOP	GOP base		Variable		Variable		Fixed		Total
					of the	amount		rent ratio		rent		rent		rent
					hotel(s)

		The Five HMJ Hotels	Midterm	3,276	1,675	85.0%	1,360	1,610		2,970
		Full year	7,783	3,351	3,767	3,221		6,988

		Okinawa Marriott	Midterm	378	350	90.0%	25	274		300
		Resort & Spa	Full year	1,146	700	401	550		951

		Sheraton Grand	Midterm	515	234	82.5%	232	174		406
		Hiroshima Hotel (*1)	Full year	1,097	468	519	348		867
Operating
	Oriental Hotel	Midterm	131	212				-	199		199
Revenue		Fukuoka Hakata	Full year	792	425	90.0%	330	400		730
		Station (*2)

		Holiday Inn	Midterm	570	325	92.5%	227	288		515
		Osaka Namba	Full year	1,078	650	396	576		972

		Hilton Tokyo Narita	Midterm	489	275	86.5%	185	222		407
		Airport	Full year	1,098	550	474	444		918

		International Garden	Midterm	323	180	98.0%	141	168		309
		Hotel Narita	Full year	627	360	262	336		598

		Hotel Nikko Nara	Midterm	316	235	91.5%	74	210		284
		Full year	691	470	203	420		623

		Sub Total		Midterm	6,002	－		－		2,247		3,147		5,394

			Full year	14,317	－			6,356		6,295			12,651

		ACTIVE-INTER	Midterm	－	－				6	230		236
		CITY HIROSHIMA		－
		(Office and commercial
		Full year	－	－				11	461		472
		tenants)
		Total		Midterm	－	－		－		2,253		3,377		5,631

			Full year	－	－			6,368		6,756			13,124

(*1) Stating the rent for Sheraton Grand Hiroshima Hotel, the major facility of ACTIVE-INTER CITY HIROSHIMA.

(*2) Due to the impact of the suspension of hotel operation due to the Renovation implemented in the first half of the fiscal year ended December 2019 (20th period), GOP of the hotel for the first half did not exceed GOP base amount. Therefore, variable rent for the midterm is not recognized.

Item	Assumptions

Income from management contracts (*3) and variable rent from hotels other than the Twelve HMJ Hotels (Unit: millions of yen)

	Midterm	Full year
ibis Tokyo Shinjuku	246	537
ibis Styles Kyoto Station	213	417
ibis Styles Sapporo	256	598
Mercure Sapporo	282	614
Mercure Okinawa Naha	170	346
Mercure Yokosuka	178	308
the b suidobashi	9	19
the b ikebukuro	70	132
the b hachioji	32	63
the b hakata	75	141
Total	1,537	3,179

(*3) For income from management contracts, it is assumed that each hotel's GOP amount is recognized as income from management contracts and the management contract fees to be paid by JHR are recognized as an operating expense.

The Two New HMJ Hotels (Acquired assets) (*1) ① Hotel Oriental Express Osaka Shinsaibashi
The assumptions of the fixed rent and variable rent are as follows. Total rent = Fixed rent + Variable rent
Variable rent = [Total GOP of the hotels - GOP base amount] × Variable rent ratio (%)

(Unit: millions of yen)

			Total GOP	GOP base	Variable	Variable	Fixed	Total

			of the hotel	amount	rent ratio	rent	rent	rent
Hotel Oriental Express	Midterm	－	－	－	－	47	47
Osaka Shinsaibashi	Full year	71	64	91.0%	6	102	109
(*2)

(*1) The Two New HMJ Hotels (Acquired assets) are Hotel Oriental Express Osaka Shinsaibashi, which was acquired on February 1, 2019, and Hilton Tokyo Odaiba, which was acquired on April 8, 2019. The same shall apply hereinafter.

(*2) Hotel Oriental Express Osaka Shinsaibashi was acquired on February 1, 2019, and has a lease contract which adopts fixed rent until June 30, 2019, and fixed rent as well as variable rent which is linked to GOP of the hotel from July 1, 2019. GOP of the hotel for the full year is the GOP of the hotel from July 2019 through December 2019. The fixed rent for the full year is the assumed figures for 334 days from February 1, 2019 to December 31, 2019. Base GOP amount will be ¥128 million and annual fixed rent will be ¥110 million starting from the fiscal year ending December 2020.

Hilton Tokyo Odaiba

The assumptions of the fixed rent and variable rent for Hilton Tokyo Odaiba are as follows. Variable rent for Hilton Tokyo Odaiba for the fiscal year ending December 2019 (20th period) is not expected.

Total rent = Fixed rent + Variable rent

Variable rent = (AGOP (adjusted GOP) of the hotels (*3) - AGOP base amount) × Variable rent ratio (%) (Unit: millions of yen)

AGOP of

AGOP

Variable

Fixed

Total

the hotel

base

Rent

rent ratio

rent

(*4)

amount

(*4)

Hilton Tokyo Odaiba

Midterm

526

817

30.0%

－

714

Full year

1,986

2,450

－

2,264

Item		Assumptions
	(*3) AGOP (adjusted GOP) is the amount calculated by subtracting certain fees and other items from GOP. The same
		shall apply hereinafter.
	(*4) As Hilton Tokyo Odaiba was acquired on April 8, 2019, AGOP of the hotel for the midterm and the full year is
		the AGOP of the hotel from April through June, 2019 and from April through December 2019, respectively. The
		fixed rent for the full year is the assumed figures for 268 days from April 8, 2019 through December 31, 2019.
		AGOP base amount after the fiscal year ending December 2020 through December 2021 will be ¥2,970 million,
		and the annual fixed rent will be ¥3,100 million.
	(3) Other hotels subject to variable rent
		Variable rent from other hotels subject to variable rent	(Unit: millions of yen)
			Midterm		Full year
		Comfort Hotel Tokyo Higashi Nihombashi	16		16
		Smile Hotel Nihombashi Mitsukoshimae	20		20
		Hotel Vista Kamata Tokyo	－		20
		Chisun Inn Kamata	41		82
		Hotel Keihan Universal City	Undisclosed (*)	Undisclosed (*)
		Sotetsu Fresa Inn Shimbashi-Karasumoriguchi	114		114
		Hilton Tokyo Bay	Undisclosed (*)	Undisclosed (*)
		Hilton Nagoya	Undisclosed (*)	Undisclosed (*)
		Total of 8 hotels	815		1,619
	(*) Undisclosed since tenants that concluded lease agreements did not agree to disclose rent revenue, etc.

The following is the breakdown of variable rent and income from management contracts (*1)

(Unit: millions of yen)

	Midterm	Full year
The Twelve HMJ Hotels (*2)	2,253	6,368
The 21 Hotels with Variable Rent, etc. excluding the Twelve HMJ Hotels	1,537	3,179
The Two New HMJ Hotels (Acquired assets)	－	6
Other hotels with variable rent, etc. (8 hotels)	815	1,619
Total (32 hotels)	4,606	11,174

(*1) For details of contracts for variable rent and income from management contracts, please refer to page 48, "3. Reference Information; B Assets under management; (C) Other major assets under management; C. Overview of the hotel business; a. Rent structures of hotels with variable rent, management contract or revenue sharing" of the "Midterm Financial Report for the Fiscal Year Ending December 31, 2019 (January 1, 2019-June 30, 2019)" dated August 22, 2019.

(*2) This figure includes revenue-linked rent of office and commercial tenants at ACTIVE-INTER CITY HIROSHIMA.

With respect to real estate leasing expenses, which constitute a major part of the operating expenses, expenses other than depreciation are calculated based on historical data, and variable factors are reflected in the calculation.
It is assumed that the ¥1,658 million will be recognized as expenses for fixed asset taxes, city planning taxes, etc.
In general, fixed asset tax and city planning tax and other taxes and public dues on acquired assets are

Operating	settled with the previous owners at the time of acquisition, calculated on a pro rata basis of the holding
period. For JHR, such settlement amount is included in the acquisition price, and it will not be recognized
Expenses
as expenses for the calculation period.

Capital expenditure is assumed to be ¥6,695 million (¥3,661 million for capital expenditure I, ¥958 million for capital expenditure II, and ¥2,075 million for capital expenditure III), and of those capital expenditure, ¥3,147 million for expenditure (¥1,456 million for capital expenditure I, ¥1,690 million for capital expenditure III) related to the Renovation at Oriental Hotel Fukuoka Hakata Station) for the fiscal year ended December 2019 (20th period) is assumed.

Item		Assumptions
	(*) JHR classifies capital expenditures into the following three categories. (I) Capital investment related to renewal of
		equipment and facilities of buildings which is required to maintain proper values of properties, (II) capital
		investment for fixtures, furniture and equipment that are not directly related to building 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.
Operating	・ Depreciation is calculated using the straight-line method including the planned capital expenditures above,
Expenses		and is assumed to be ¥4,524 million.
	・ Repair expenses for buildings are recognized as expenses in the assumed amount necessary for each
		operating period. Please note that the repair expenses of each operating period may differ materially from
		the forecast amount for various reasons, such as; (1) Emergency repair expenses may be necessary due to
		damage to buildings from unexpected causes; (2) The amount of repair expenses generally tends to increase
		in difference over time; and (3) Repair expenses are not required on a regular basis.
	・ ¥1,915 million is expected for borrowing-related costs, including	interest expense, amortization for
Non-operating		financing fee and arrangement fee, and other non-operating expenses.
Expenses	・ Expenses for issuance of new investment units and secondary offering are amortized over a period of three
		years by the straight-line method.

Interest-	・ The balance of interest-bearing debt (sum of loans and investment corporation bonds) as of the end of
bearing Debt		December 2019 was ¥168,754 million.

	・ Dividend per unit for the fiscal year ended December 2019 (20th period) is calculated based on the
		following assumptions.
		Net income	¥15,273 million
		Reversal of reserve for temporary difference adjustment
		(negative goodwill)
		50-year amortization amount of negative goodwill (*1)	¥262 million
		Loss on retirement of noncurrent assets (*2)	¥248 million
		Correspondence to large-scale renovation works (*3)	¥357 million
		Adjustment for dilution (*4)	¥310 million
		Distributable amount	¥16,452 million
		Total number of investment units issued	4,462,347 units
		Dividend per unit	¥3,686
Dividend per	(*1) ¥262 million (hereinafter called "50-year amortization amount of negative goodwill") is scheduled to be paid
	out as dividends, with the remaining balance of the reserve for temporary difference adjustment set as the
Unit
	maximum amount, for every fiscal year.

	(*2) The 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) Large-scale renovation works causing the suspension of hotel operation were implemented at the former Hotel
		Centraza Hakata from October 1, 2018, and the hotel opened as Oriental Hotel Fukuoka Hakata Station on April
		9, 2019. Taking into consideration the effect on dividend by the suspension of hotel operation due to the
		Renovation, reserve for temporary difference adjustment (negative goodwill) will be appropriated.
	(*4) We plan to avoid the impact of the dilution of investment units on dividend per unit for the fiscal year ending
		December 2019 caused by not owning The Two New HMJ Hotels (Acquired assets) for the full fiscal year
		ended December 2019 and by the issuance of new investment units through appropriation of the reserve for
		temporary difference adjustment (negative goodwill).

Dividend per unit may fluctuate due to various causes, such as fluctuation of rent revenue resulting from transfer of assets under management, change of tenants, etc. at hotels, change in the business environment of hotel 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 the appropriation of the reserve for temporary difference adjustment (negative goodwill) for dividends for the fiscal year ended December 2019 (20th period) is expected to be ¥10,615 million.

Item		Assumptions
Dividend per
Unit	・ It is assumed that the excess of earnings (dividend per unit resulting from excess of earnings) will not be
Resulting
distributed.
from Excess

of Earnings

	・ It is assumed that revision in	law, tax system, accounting standard, regulations of the listing, and
	regulations of the Investment Trusts Association, Japan (the "ITAJ") that may impact the forecast above
Others	will not be made.
・ It is assumed that unexpected major incident will not occur in the general economy, real estate market and

	hotel business environment, etc.
	・ The numerical values are rounded down to the nearest millions of yen in the assumptions above.

Assumptions of the operating forecast for the full fiscal year ending December 2020 (21st period)

Item	Assumptions
Calculation ・ Full fiscal year ending December 2020 (21st Period): January 1, 2020 through December 31, 2020 (366
Period	days)
	・ The 43 properties owned by JHR as of today are assumed.
Assets under	・ It is assumed that there will be no change (acquisition of new property or disposition of the Existing
Management	Properties, etc.) in assets under management other than the above through the end of the fiscal year ending
December 2020 (21st period). However, the actual results may fluctuate depending on the changes in assets

	under management that may take place.

Operating revenue is calculated based on the conditions of the lease and other contracts effective as of today and in consideration of competitiveness of hotels, market environment and other factors. If there are lease contracts with regard to facilities other than hotels, such as retail 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.

The 21 Hotels with Variable Rent, etc.

① The Twelve HMJ Hotels

The assumptions of the fixed rent and variable rent for the Twelve HMJ hotels are as follows. Total rent = Fixed rent + Variable rent

Variable rent = (Total GOP of the hotels - GOP base amount) × Variable rent ratio (%)

(Unit: millions of yen)

					Total GOP	GOP base		Variable		Variable		Fixed		Total

					of the	amount		rent ratio		rent		rent		rent
					hotel(s)

		The Five HMJ Hotels	Midterm	3,007	1,675	85.0%		1,132	1,610		2,743
	(*1)		Full year	7,546	3,351		3,566	3,221		6,787

		Okinawa Marriott	Midterm	384	350	90.0%		30	274		305
		Resort & Spa	Full year	1,354	700		589	550		1,139

		Sheraton Grand	Midterm	499	234	82.5%		218	174		392
Operating		Hiroshima Hotel (*2)	Full year	1,093	468		515	348		863

	Oriental Hotel	Midterm	602	221				373	212		586
Revenue		98.0%
		Fukuoka Hakata	Full year	1,253	442		795	425		1,220
		Station (*3)

		Holiday Inn	Midterm	512	325	92.5%		173	288		461
		Osaka Namba	Full year	1,053	650		373	576		949

		Hilton Tokyo Narita	Midterm	437	275	86.5%		140	222		362
		Airport	Full year	1,122	550		495	444		939

		International Garden	Midterm	314	180	98.0%		131	168		299
		Hotel Narita	Full year	675	360		309	336		645

		Hotel Nikko Nara	Midterm	307	235	91.5%		66	210		276
		Full year	701	470		211	420		631

		Sub Total		Midterm	6,065	－		－		2,267		3,160		5,427

			Full year	14,801	－			6,856		6,320			13,176


		ACTIVE-INTER	Midterm	－	－				5	233		238
		CITY HIROSHIMA					－
		(Office and commercial	Full year	－	－		10	467		478

		tenants)
		Total		Midterm	－	－		－		2,272		3,393		5,666

			Full year	－	－			6,867		6,787			13,655

Item	Assumptions

(*1) Of The HMJ5 Hotels, Namba Oriental Hotel is scheduled to implement a large-scale renovation with suspension of hotel operation from November 2020 to March 2021. Taking into consideration the effect on dividend by the suspension of hotel operation due to the renovation, reserve for temporary difference adjustment (negative goodwill) will be appropriated.

(*2) Stating the rent for Sheraton Grand Hiroshima Hotel, the major facility of ACTIVE-INTER CITY HIROSHIMA.

(*3) The fixed-term lease agreement for Oriental Hotel Fukuoka Hakata Station were renewed dated on December 20, 2019, and the amount of fixed rent, GOP base amount and variable rent ratio were changed from January 1, 2020.

Income from management contracts (*4) and variable rent from hotels other than the Twelve HMJ Hotels (Unit: millions of yen)

			Midterm	Full year
		ibis Tokyo Shinjuku	248	547
		ibis Styles Kyoto Station	179	364
		ibis Styles Sapporo	268	666
		Mercure Sapporo	288	688
		Mercure Okinawa Naha	179	374
		Mercure Yokosuka	178	298
		the b suidobashi	19	70
		the b ikebukuro	65	179
		the b hachioji	26	67
		the b hakata	66	138
		Total	1,520	3,395
	(*4) For income from management contracts, it is assumed that each hotel's GOP amount is recognized as income
Operating		from management contracts and the management contract fees to be paid by JHR are recognized as an operating
	expense.
Revenue

The Two New HMJ Hotels (Acquired assets)

Hotel Oriental Express Osaka Shinsaibashi

The assumptions of the fixed rent and variable rent for Oriental Express Osaka Shinsaibashi are as follows.

Total rent = Fixed rent + Variable rent

Variable rent = (Total GOP of the hotels - GOP base amount) × Variable rent ratio (%)

(Unit: millions of yen)

		Total GOP	GOP base	Variable	Variable	Fixed	Total

		of the hotel	amount	rent ratio	rent	rent	rent
Hotel Oriental Express	Midterm	72	64	91.0%	8	55	63
Osaka Shinsaibashi	Full year	151	128	21	110	131

Hilton Tokyo Odaiba

The assumptions of the fixed rent and variable rent for Hilton Tokyo Odaiba are as follows. Total rent = Fixed rent + Variable rent

Variable rent = (AGOP (adjusted GOP) of the hotels (*1) - AGOP base amount) × Variable rent ratio (%)

(Unit: millions of yen)

AGOP of

AGOP

Variable

Fixed

Total

base

Rent

the hotel

rent ratio

rent

amount

(*2)

Hilton Tokyo Odaiba

Midterm

1,163

1,485

30.0%

1,549

(*2)

Full year

3,283

2,970

3,100

3,194

Item		Assumptions
	(*1) AGOP (adjusted GOP) is the amount calculated by subtracting certain fees and other items from GOP. The same
		shall apply hereinafter.
	(*2) Hilton Tokyo Odaiba is scheduled to implement a large-scale renovation with suspension of part of room sales
		from September 2020 to December 2020.
	(3) Other hotels subject to variable rent
		Variable rent from other hotels subject to variable rent	(Unit: millions of yen)
			Midterm	Full year
		Comfort Hotel Tokyo Higashi Nihombashi	1	1
		Smile Hotel Nihombashi Mitsukoshimae	17	17
		Hotel Vista Kamata Tokyo	－	23
		Chisun Inn Kamata	42	85
		Hotel Keihan Universal City	Undisclosed (*)	Undisclosed (*)
		Sotetsu Fresa Inn Shimbashi-Karasumoriguchi	89	89
Operating		Hilton Tokyo Bay	Undisclosed (*)	Undisclosed (*)
Revenue		Hilton Nagoya	Undisclosed (*)	Undisclosed (*)
		Total of 8 hotels	756	1,605

Undisclosed since tenants that concluded lease agreements did not agree to disclose rent revenue, etc.

The following is the breakdown of variable rent and income from management contracts (*1)

(Unit: millions of yen)

	Midterm	Full year
The Twelve HMJ Hotels (*)	2,272	6,867
The 21 Hotels with Variable Rent, etc. excluding the Twelve HMJ Hotels	1,520	3,395
The Two New HMJ Hotels (Acquired assets)	8	115
Other hotels with variable rent, etc. (8 hotels)	756	1,605
Total (32 hotels)	4,557	11,984

This figure includes revenue-linked rent of office and commercial tenants at ACTIVE-INTER CITY HIROSHIMA.

With respect to real estate leasing expenses, which constitute a major part of the operating expenses, expenses other than depreciation are calculated based on historical data, and variable factors are reflected in the calculation.
It is assumed that the ¥1,921 million will be recognized as expenses for fixed asset taxes, city planning taxes, etc.
In general, fixed asset tax and city planning tax and other taxes and public dues on acquired assets are settled with the previous owners at the time of acquisition, calculated on a pro rata basis of the holding period. For JHR, such settlement amount is included in the acquisition price, and it will not be recognized as expenses for the calculation period.
Capital expenditure is assumed to be ¥6,775 million (¥3,478 million for capital expenditure I, ¥862 million

Operating	for capital expenditure II, ¥2,434 million for capital expenditure III, and of those capital expenditure,
Expenses	¥3,000 million is for expenditure (¥800 million for capital expenditure I and ¥2,200 million for capital
	expenditure III) related to the large-scale renovation at Hilton Tokyo Odaiba) (*) for the fiscal year ending
	December 2020 (21st period). In addition, capital expenditure related to the large-scale renovation at
	Namba Oriental Hotel is assumed to be ¥2,600 million in the fiscal year ending December 2021 (22nd
	period).

JHR classifies capital expenditures into the following three categories. (I) Capital investment related to renewal of equipment and facilities of buildings which is required to maintain proper values of properties, (II) capital investment for fixtures, furniture and equipment that are not directly related to building 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.

Item		Assumptions
	・ Depreciation is calculated using the straight-line method including the planned capital expenditures above,
		and is assumed to be ¥4,859 million.
Operating	・ Repair expenses for buildings are recognized as expenses in the assumed amount necessary for each
	operating period. Please note that the repair expenses of each operating period may differ materially from
Expenses
	the forecast amount for various reasons, such as; (1) Emergency repair expenses may be necessary due to

		damage to buildings from unexpected causes; (2) The amount of repair expenses generally tends to increase
		in difference over time; and (3) Repair expenses are not required on a regular basis.

	・ ¥1,888 million is expected for borrowing-related costs, including interest	expense, amortization for
Non-operating		financing fee and arrangement fee .
Expenses	・ Expenses for issuance of new investment units and secondary offering are amortized over a period of three
		years by the straight-line method.
	・ The balance of interest-bearing debt (sum of loans and investment corporation bonds) as of the end of
Interest-		December 2019 was ¥168,754 million. It is assumed that the balance of interest-bearing debt will be
	¥168,754 million as of December 31, 2020.
bearing Debt
・ It is assumed that ¥12,782 million loans, which are due within the fiscal year ending December 2020 (21st
		period), will be fully refinanced.
	・ Dividend per unit for the fiscal year ending December 2020 (21st period) is calculated based on the
		following assumptions.
		Net income	¥16,238 million
		Use of reserve for temporary difference adjustment (negative goodwill)
		50-year amortization amount of negative goodwill (*1)	¥262 million
		Loss on retirement of noncurrent assets (*2)	¥18 million
		Correspondence to large-scale renovation works for Hilton Tokyo Odaiba (*3)	¥44 million
		Correspondence to large-scale renovation works for Namba Oriental Hotel (*4)	¥172 million
		Distributable amount	¥16,735 million
		Total number of investment units issued	4,462,347 units
		Dividend per unit	¥3,750
	(*1) ¥262 million (hereinafter called "50-year amortization amount of negative goodwill") is scheduled to be paid
		out as dividends, with the remaining balance of the reserve for temporary difference adjustment set as the
Dividend per		maximum amount, for every fiscal year.
(*2) The amount recognized as a loss on retirement of noncurrent assets will be	appropriated by reserve for
Unit		temporary difference adjustment (negative goodwill) and is expected to have no impact on dividend per unit.
	(*3) Hilton Tokyo Odaiba is scheduled to implement a large-scale renovation with suspension of part of room sales
		from September 2020 to December 2020. Taking into consideration the effect on dividend by the renovation,
		reserve for temporary difference adjustment (negative goodwill) will be appropriated.
	(*4) Namba Oriental Hotel is scheduled to implement a large-scale renovation with suspension of hotel operation
		from November 2020 to March 2021. Taking into consideration the effect on dividend by the renovation,
		reserve for temporary difference adjustment (negative goodwill) will be appropriated.

Dividend per unit may fluctuate due to various causes, such as fluctuation of rent revenue resulting from transfer of assets under management, change of tenants, etc. at hotels, change in the business environment of hotel 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 the appropriation of the reserve for temporary difference adjustment (negative goodwill) for dividends for the fiscal year ending December 2020 (21st period) is expected to be ¥10,118 million.

Dividend per

Unit ・ It is assumed that the excess of earnings (dividend per unit resulting from excess of earnings) will not be

Resulting distributed. from Excess

of Earnings

It is assumed that revision in law, tax system, accounting standard, regulations of the listing, regulations of the ITAJ that may impact the forecast above will not be made.

Others ・ It is assumed that unexpected major incident will not occur in the general economy, real estate market and hotel business environment, etc.

The numerical values are rounded down to the nearest millions of yen in the assumptions above.

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 and information.

ADR and RevPAR are rounded off to the nearest yen. Sales and GOP are rounded off to the nearest millions of yen. Occupancy rate and comparison with the previous period are rounded off to one decimal place.

<1> The 20 Hotels with Variable Rent, etc.

In order to eliminate the impact of the suspension of sales due to the renovation, 20 hotels, excluding Namba Oriental Hotel from The 21 Hotels with Variable Rent, etc. are stated. The same shall apply hereinafter.

					Fiscal year ended			Fiscal year ended December 2019			Fiscal year ending
					December 2018					December 2020

							Comparison			Previous			Forecast			Comparison	Comparison						Comparison
					Actual		with			forecast			this time			with		with			Forecast		with
						previous			(first half:			(first half:			previous		previous			this time		previous

								period			actual)			actual)			period		forecast					period
		First half of	87.0%			0.4pt		86.1%			86.1%				(0.9pt)		0.0pt		86.3%			0.2pt
Occupancy		the year

	Second half	86.9%			(1.3pt)		89.1%			86.5%				(0.4pt)		(2.5pt)		88.6%			2.0pt
Rate
	of the year
		Full year			87.0%			(0.5pt)				87.6%				86.3%				(0.6pt)			(1.3pt)		87.5%		1.1pt
		First half of	14,344		2.2%			14,502			14,502			1.1%		0.0%			14,485		(0.1%)
ADR		the year

	Second half	16,820		0.8%			16,735			16,262			(3.3%)		(2.8%)			17,611		8.3%
(*1)
	of the year
		Full year			15,592			1.4%				15,647				15,392				(1.3%)			(1.5%)		16,077		4.5%
		First half of	12,480		2.7%			12,491			12,491			0.1%		0.0%			12,506		0.1%
RevPAR		the year

	Second half	14,619		(0.6%)			14,908			14,075			(3.7%)		(5.6%)			15,600		10.8%
(*2)
	of the year
		Full year			13,559			0.9%				13,709				13,289				(2.0%)			(3.1%)		14,061		5.8%
		First half of	21,541		0.9%			21,780			21,780			1.1%		0.0%			21,814		0.2%
Sales		the year

	Second half	24,783		(0.9%)		25,210			24,108			(2.7%)		(4.4%)			25,979		7.8%
(JPY1M)
	of the year
		Full year			46,324			(0.1%)				46,990				45,888				(0.9%)			(2.3%)		47,792		4.2%
		First half of	6,841		2.8%		6,889			6,889			0.7%		0.0%			6,579		(4.5%)
		the year
GOP
	Second half	9,260		0.1%		9,335		8,853		(4.4%)		(5.2%)		9,766		10.3%
(JPY1M)
	of the year
		Full year		16,101		1.2%				16,224				15,742				(2.2%)			(3.0%)			16,345		3.8%

(*1) ADR: Represents average daily rate, which is calculated by dividing revenue for rooms department for a given period (including service charges) by the total number of rooms sold during the period. As for the service charge, Kobe Meriken Park Oriental Hotel, Oriental Hotel tokyo bay, Namba Oriental Hotel, Hotel Nikko Alivila, Oriental Hotel Hiroshima, Okinawa Marriott Resort & Spa, Sheraton Grand Hiroshima Hotel (ACTIVE-INTER CITY HIROSHIMA), International Garden Hotel Narita, Hotel Nikko Nara and Oriental Hotel Fukuoka Hakata Station request 10%, Hilton Tokyo Narita Airport requests 12% and Hilton Tokyo Odaiba requests 13%. Moreover, other hotels among the 21 Hotels with Variable Rent, etc. do not request service charges. The same shall apply hereinafter.

(*2) RevPAR represents revenue per available room, which is calculated by dividing total rooms revenue for a certain period (excluding service charges) by the total number of rooms available for sale during the period. The same shall apply hereinafter.

<2>The 10 HMJ Hotels

In order to eliminate the impact of the suspension of hotel operation due to the renovation, 10 hotels, excluding Oriental Hotel Fukuoka Hakata Station from The Twelve HMJ Hotels are stated. The same shall apply hereinafter.

					Fiscal year ended		Fiscal year ended December 2019		Fiscal year ending
					December 2018			December 2020

								Comparison		Previous		Forecast	Comparison		Comparison				Comparison
								with		forecast		this time		with		with		Forecast	with
					Actual			(first
						previous			(first half:		previous		previous		this time		previous
									half:
								period			actual)		period		forecast				period
									actual)

		First half of	86.8%			(0.0pt)	87.0%		87.0%			0.2pt		0.0pt	86.7%			(0.3pt)
Occupancy		the year

	Second half	87.4%			(1.1pt)	89.0%		87.6%			0.2pt		(1.4pt)	88.8%			1.3pt
Rate
	of the year
		Full year			87.1%			(0.6pt)			88.0%			87.3%			0.2pt		(0.7pt)		87.8%		0.5pt
		First half of	16,293		2.4%		16,251		16,251		(0.3%)		0.0%		16,271		0.1%
		the year

ADR		Second half	19,665		0.3%		19,426		18,789		(4.5%)		(3.3%)		20,593		9.6%
		of the year
		Full year			17,999			1.2%			17,870			17,535			(2.6%)		(1.9%)		18,470		5.3%
		First half of	14,149		2.4%		14,145		14,145		(0.0%)		0.0%		14,114		(0.2%)
		the year

RevPAR		Second half	17,183		(1.0%)		17,294		16,455		(4.2%)		(4.9%)		18,295		11.2%
		of the year
		Full year			15,679			0.5%			15,733			15,310			(2.4%)		(2.7%)		16,216		5.9%
		First half of	17,336		0.3%		17,571		17,571		1.4%		0.0%		17,524		(0.3%)
Sales		the year

	Second half	20,357		(1.2%)		20,505		19,773		(2.9%)		(3.6%)		21,224		7.3%

(JPY1M)
	of the year
		Full year			37,694			(0.5%)			38,076			37,344			(0.9%)		(1.9%)		38,748		3.8%
	First half of the	4,936		2.4%		5,051		5,051		2.3%		0.0%		4,774		(5.5%)
		year
GOP
	Second half	7,204		1.0%		7,139		6,925		(3.9%)		(3.0%)		7,603		9.8%
(JPY1M)
	of the year
		Full year		12,140		1.6%			12,190			11,976			(1.3%)			(1.8%)		12,377		3.3%

<3> Namba Oriental Hotel

					Fiscal year ended		Fiscal year ended December 2019		Fiscal year ending
					December 2018			December 2020

								Comparison		Previous			Forecast											Comparison
									forecast					Comparison		Comparison
								with				this time					Forecast		with
					Actual		previous		(first			(first half:			with previous		with previous		this time		previous
								period		half:			actual)			period		forecast					period
									actual)

		First half of	93.5%			(1.3pt)	95.8%			95.8%				2.3pt		0.0pt	93.6%			(2.2pt)
Occupancy		the year

	Second half	92.2%			(4.4pt)	94.3%			90.1%				(2.1pt)		(4.2pt)	62.1%			(27.9pt)
Rate
	of the year
		Full year			92.8%			(2.9pt)			95.0%				92.9%				0.1pt			(2.1pt)		77.8%		(15.1pt)
		First half of	21,748		2.4%		19,707			19,707			(9.4%)		0.0%		18,137		(8.0%)
		the year

ADR		Second half	21,214		(5.5%)		20,468			17,616			(17.0%)		(13.9%)		17,933		1.8%
		of the year
		Full year			21,481			(1.7%)			20,088				18,685				(13.0%)			(7.0%)		18,055		(3.4%)
		First half of	20,330		1.0%		18,880			18,880			(7.1%)		0.0%		16,971		(10.1%)
		the year

RevPAR		Second half	19,558		(9.9%)		19,301			15,867			(18.9%)		(17.8%)		11,142		(29.8%)
		of the year
		Full year			19,941			(4.7%)			19,092				17,361				(12.9%)			(9.1%)		14,041		(19.1%)
		First half of	1,418		1.7%		1,344			1,344			(5.2%)		0.0%		1,226		(8.7%)
Sales		the year

	Second half	1,474		(1.3%)		1,446		1,252			(15.0%)		(13.4%)		943		(24.7%)
(JPY1M)
	of the year
		Full year			2,891			0.2%			2,790				2,596				(10.2%)			(6.9%)		2,170		(16.4%)
	First half of the	874		1.1%		820		820			(6.1%)		0.0%		688		(16.0%)
		year
GOP
	Second half	937		2.8%		854		729		(22.2%)		(14.6%)		483		(33.7%)
(JPY1M)
	of the year
		Full year		1,810		1.9%			1,674				1,549				(14.4%)			(7.4%)			1,172		(24.4%)

Namba Oriental Hotel is scheduled to implement a large-scale renovation with the suspension of hotel operation from November 2020 to March 2021.

<4> Oriental Hotel Fukuoka Hakata Station

					Fiscal year ended		Fiscal year ended December 2019		Fiscal year ending
					December 2018			December 2020

								Comparison		Previous			Forecast											Comparison
									forecast					Comparison		Comparison
								with				this time					Forecast		with
					Actual		previous		(first			(first half:			with previous		with previous		this time		previous
								period		half:			actual)			period		forecast					period
									actual)

		First half of	94.7%			1.0pt	39.1%			39.1%				(55.6pt)		0.0pt	87.5%			48.4pt
Occupancy		the year

	Second half	47.0%			(48.4pt)	85.8%			88.4%				41.4pt		2.7pt	88.8%			0.3pt
Rate
	of the year
		Full year			70.7%			(23.9pt)			62.7%				64.0%				(6.7pt)			1.3pt		88.1%		24.1pt
		First half of	13,323		8.4%		19,385			19,385			45.5%		0.0%		18,137		(6.4%)
		the year

ADR		Second half	13,343		(1.5%)		18,656			18,314			37.3%		(1.8%)		18,699		2.1%
		of the year
		Full year			13,330			3.1%			18,882				18,639				39.8%			(1.3%)		18,421		(1.2%)
		First half of	12,621		9.6%		7,588			7,588			(39.9%)		0.0%		15,869		109.2%
		the year

RevPAR		Second half	6,274		(51.5%)		16,005			16,198			158.2%		1.2%		16,595		2.5%
		of the year
		Full year			9,422			(22.9%)			11,831				11,928				26.6%			0.8%		16,234		36.1%
		First half of	1,199		(5.3%)		673			673			(43.9%)		0.0%		1,287		91.3%
Sales		the year

	Second half	637		(46.8%)		1,286		1,313			106.1%		2.1%		1,367		4.1%
(JPY1M)
	of the year
		Full year			1,836			(22.5%)			1,959				1,985				8.2%			1.4%		2,654		33.7%
	First half of the	494		3.9%		131		131			(73.4%)		0.0%		603		358.4%
		year
GOP
	Second half	141		(69.8%)		629		661		368.4%		5.0%		651		(1.5%)
(JPY1M)
	of the year
		Full year		635		(32.6%)			761				792				24.7%			4.2%			1,254		58.2%

Large-scalerenovation works causing the suspension of hotel operation were implemented at Oriental Hotel Fukuoka Hakata Station from October 1, 2018 to April 8, 2019.

<5> Hotel Oriental Express Osaka Shinsaibashi

Fiscal year ended

Fiscal year ended December 2019

Fiscal year ending

December 2018

December 2020

Comparison

Forecast

Comparison

Actual

forecast

this time

with

Forecast

with

with previous

(first half:

this time

period

actual)

period

forecast

period

First half of

－

92.3%

－

0.0pt

90.7%

(1.6pt)

Occupancy

the year

Second half

－

91.5%

88.3%

－

(3.2pt)

92.2%

3.9pt

Rate

of the year

Full year

－

91.9%

90.3%

－

(1.6pt)

91.5%

1.2pt

First half of

－

9,611

－

0.0%

9,275

(3.5%)

the year

ADR

Second half

－

10,429

9,013

－

(13.6%)

9,385

4.1%

of the year

Full year

－

10,021

9,316

－

(7.0%)

9,331

0.2%

First half of

－

8,868

－

0.0%

8,414

(5.1%)

the year

RevPAR

Second half

－

9,544

7,958

－

(16.6%)

8,654

8.8%

of the year

Full year

－

9,209

8,409

－

(8.7%)

8,535

1.5%

First half of

－

205

－

0.0%

199

(2.7%)

Sales

the year

Second half

－

226

190

－

(15.9%)

207

8.8%

(JPY1M)

of the year

Full year

－

431

395

－

(8.3%)

407

2.9%

First half of the

－

0.0%

(13.7%)

year

GOP

Second half

(21.4%)

10.1%

(JPY1M)

－

of the year

Full year

－

175

156

－

(11.1%)

151

(2.8%)

As Hotel Oriental Express Osaka Shinsaibashi opened on April 2, 2018, figures prior to the fiscal year December ended 2018 are not shown.

<6> Hilton Tokyo Odaiba

		Fiscal year ended	Fiscal year ended December 2019	Fiscal year ending
		December 2018	December 2020

			Comparison	Previous	Forecast	Comparison	Comparison		Comparison
		Actual	with	forecast	this time	with	with	Forecast	with
		previous	(first half:	(first half:	previous	previous	this time	previous

			period	actual)	actual)	period	forecast		period
	First half of	95.2%	0.9pt	85.9%	85.9%	(9.3pt)	0.0pt	90.4%	4.5pt
Occupancy	the year

Second half	92.9%	(3.0pt)	91.3%	89.7%	(3.1pt)	(1.6pt)	83.2%	(6.5pt)
Rate
of the year

Full year	94.0%	(1.1pt)	88.6%	87.8%	(6.2pt)	(0.8pt)	86.8%	(1.1pt)
First half of	28,831	6.8%	29,263	29,263	1.5%	0.0%	29,488	0.8%
the year

ADR		Second half	31,396		8.6%		32,447		31,533		0.4%		(2.8%)		40,860		29.6%
		of the year
		Full year			30,108			7.6%			30,917			30,432			1.1%		(1.6%)		34,969		14.9%
		First half of	27,451		7.7%		25,135		25,135		(8.4%)		0.0%		26,650		6.0%
		the year

RevPAR		Second half	29,154		5.3%		29,622		28,289		(3.0%)		(4.5%)		33,981		20.1%
		of the year
		Full year			28,309			6.4%			27,397			26,725			(5.6%)		(2.5%)		30,336		13.5%
		First half of	4,591		9.5%		4,258		4,258		(7.3%)		0.0%		4,509		5.9%
Sales		the year

	Second half	5,008		7.3%		4,744		4,660		(6.9%)		(1.8%)		5,723		22.8%
(JPY1M)
	of the year
		Full year			9,599			8.3%			9,001			8,918			(7.1%)		(0.9%)		10,232		14.7%
	First half of the	1,374		21.7%		1,144		1,144		(16.7%)		0.0%		1,225		7.0%
		year
GOP
	Second half	1,723		15.2%		1,624		1,522		(11.7%)		(6.3%)		2,198		44.4%
(JPY1M)
	of the year
		Full year		3,097		18.0%			2,768			2,666			(13.9%)			(3.7%)		3,423		28.4%

(*1) Hilton Tokyo Odaiba was acquired on April 8, 2019. The figures for the fiscal year ended December 2018 and the fiscal year ending December 2019 are calculated as the total for full year including figures prior to the acquisition date.

(*2) Hilton Tokyo Odaiba is scheduled to implement a large-scale renovation with suspension of part of room sales from September 2020 to December 2020.

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Japan Hotel REIT Investment Corporation published this content on 10 January 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 January 2020 07:12:08 UTC

Delayed Japan Exchange Other stock markets 01:06:20 18/07/2024 BST			5-day change	1st Jan Change
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07-15	Japan Hotel REIT Completes Acquisition of Shinjuku Properties for 18.5 Billion Yen	MT
06-25	Japan Hotel REIT Secures 30 Billion Yen in Loans for Property Acquisitions	MT

Japan Hotel REIT Completes Acquisition of Shinjuku Properties for 18.5 Billion Yen	07-15	MT
Japan Hotel REIT Secures 30 Billion Yen in Loans for Property Acquisitions	06-25	MT
Japan Hotel REIT to Acquire Four Hotels for 56.2 Billon Yen	06-25	MT
Japan Hotel REIT Investment Plans New Investment Unit Issuance and Secondary Offering	06-25	MT
Japan Hotel REIT Investment Corporation agreed to acquire Okinawa Harborview Hotel for ¥21.5 billion.	06-23	CI
Japan Hotel REIT Investment Corporation agreed to acquire Southern Beach Hotel & Resort OKINAWA for ¥16.2 billion.	06-23	CI
Japan Hotel REIT Investment Corporation Reports Sales Results for the Month and Year to Date Ended April 2024	05-24	CI
Japan Hotel REIT Investment Corporation Announces Operating Results for the Month and Year to Date Ended April 2024	05-24	CI
Japan Hotel REIT Investment Fixes Rates for Two Loans; Executes Interest Rate Swaps	03-28	MT
Japan Hotel REIT Investment Corporation Reports Sales Results for the Month and Year to Date Ended February 2024	03-25	CI
Japan Hotel Reit Investment Corporation Announces Operating Results for the Month and Year to Date Ended February 2024	03-25	CI
Japan Hotel REIT Investment Gets New Borrowings Worth 30.99 Billion Yen	03-21	MT
Japan Hotel REIT Investment Corporation Announces New Loans	03-21	CI
3,700 Units of Japan Hotel REIT Investment Corporation are subject to a Lock-Up Agreement Ending on 20-MAR-2024.	03-19	CI
Japan Hotel REIT Investment Corporation Reports Earnings Results for the Full Year Ended December 31, 2023	02-21	CI
Japan Hotel REIT Investment Establishes Green Finance Framework	02-01	MT
Japan Hotel REIT Investment Raises 2023 Earnings Forecast	01-24	MT
Japan Hotel REIT Investment Terminates Unitholder Benefit Program	01-24	MT
Japan Hotel REIT Secures 800 Million Yen Refinancing	01-24	MT
Japan Hotel REIT Investment Corporation Announces Notice Concerning New Loan (Refinancing)	01-23	CI
Japan Hotel REIT Investment Corporation Revises Dividend Guidance for the Year Ended December 31, 2023 and Provides Dividend Guidance for the Year Ending December 31, 2024	01-23	CI
Japan Hotel REIT Investment Corporation Revises Earnings Guidance for the Fiscal Year Ended December 31, 2023	01-23	CI
Japan Hotel REIT Investment Corporation Provides Earnings Guidance for the Six Months and Full Year of Fiscal Year Ending December 31, 2024	01-23	CI
Japan Hotel REIT Investment Corporation Reports Sales Results for the Month and Year to Date Ended December 2023	01-23	CI
Japan Hotel REIT Completes Acquisition of Yokohama Property	12-26	MT

	1st Jan change	Capi.
JAPAN HOTEL REIT INVESTMENT CORPORATION	+14.88%	2.54B
VICI PROPERTIES, INC.	-3.17%	31.58B
GAMING AND LEISURE PROPERTIES, INC.	-0.26%	13.36B
HOST HOTELS & RESORTS, INC.	-3.13%	13.09B
RYMAN HOSPITALITY PROPERTIES, INC.	-3.50%	6.22B
APPLE HOSPITALITY REIT, INC.	-7.89%	3.65B
PARK HOTELS & RESORTS INC.	-0.52%	3.18B
CAPITALAND ASCOTT TRUST	-9.60%	2.52B
COVIVIO HOTELS	-14.63%	2.26B
SUNSTONE HOTEL INVESTORS, INC.	+0.56%	2.18B

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