Notice Regarding Issuance of New Investment Units and Secondary Offering

Overview of Capital Policy

At the board meeting held on February 25, 2026, Japan Hotel REIT Investment Corporation resolved to issue new investment units and conduct a secondary offering. The public offering of new investment units is up to 848,991 units, to be conducted simultaneously through domestic general offering and overseas offering. The issue price will be determined based on the closing price on the Tokyo Stock Exchange between March 3 and 5, 2026. Additionally, an overallotment secondary offering of 38,709 units is planned, accompanied by a third-party allotment of the same number of units. The maximum expected funds to be raised amount to approximately 69.583 billion yen, primarily allocated as part of the acquisition funds for the “Hyatt Regency Tokyo,” with the remainder to be used for future asset acquisitions and repairs or capital expenditures on existing properties.

Impact on Shareholders and Future Outlook

The issuance of new investment units will increase the total number of issued units to approximately 5.98 million, resulting in dilution; however, the capital raising aims to secure financial soundness while advancing asset acquisitions. The execution and number of units in the over-allotment secondary offering may vary depending on demand conditions. Details such as the issue price will be decided at future board meetings. The domestic general offering is conditional on the effectiveness of the notification under the Financial Instruments and Exchange Act. For outlook on future operating performance, please refer to the separately announced “Notice Regarding Revisions to the Forecast of Operating Performance for the Fiscal Year Ending December 2026 (27th Fiscal Period).”