Notice Regarding Transfer of Domestic Real Estate (Solvita Hotel Naha)

Overview and Reason for Transfer

Hoshino Resort REIT, Inc. has decided to transfer Solvita Hotel Naha, located in Naha City, Okinawa Prefecture, to Samty Co., Ltd. for 4,650 million yen. The scheduled transfer price significantly exceeds the assumed book value of 3,859 million yen, resulting in a difference of 790 million yen. This transfer is part of initiatives aimed at distribution growth, intending to sell properties within the portfolio that have faced challenges in revenue contribution and yield. The scheduled transfer date is November 4, 2026, and the sale contract was concluded on April 16, 2026.

Future Outlook and Use of Funds

The use of funds from the transfer is currently undecided, but a wide range of possibilities will be considered including securing capacity for growth investments, reducing financial costs by debt repayment, improving financial soundness, and returning value to investors. Since the transfer is scheduled for November 4, 2026, there will be no impact on operations for the fiscal periods ending April and October 2026. The impact on the fiscal period ending April 2027 is under review and will be disclosed in the earnings report to be released on June 15, 2026.