Announcement on Portfolio Operating Results (February 2026)

Overview of Operating Results

In February 2026, the portfolio-wide occupancy rate was 76.5%, up 1.4 points YoY; ADR increased 8.6% YoY to 20,771 yen; RevPAR rose 10.5% YoY to 15,884 yen; and sales totaled 4,865 million yen, up 8.3% YoY. The shift in the Chinese New Year holiday period drove increased inbound demand, notably from Taiwan and South Korea. Properties operated by Hoshino Resorts achieved higher rate sales pushing RevPAR growth, while OMO7 Osaka saw a decline in occupancy compared to the previous year due to reduced demand, though it showed improvement compared to the prior month. Non-Hoshino Resorts operated properties improved profitability and occupancy through corporate demand capture and promotional activities.

Market Environment and Outlook

While some areas continue to be affected by travel restrictions requested by the Chinese government, the decline is largely offset by expanding inbound demand from other countries. Although reservation cancellations due to worsening Middle Eastern conditions after March have been observed in some properties, the overall portfolio sales impact is minimal. Going forward, the company will closely monitor inbound demand trends and strive to improve demand environments across properties.