Notice Regarding Revision of Operational Forecast for the Fiscal Year Ending December 2026 (27th Fiscal Period)

Overview of the Revision to the Operational Forecast

Japan Hotel REIT Investment Corporation has revised its operational forecast for the fiscal year ending December 2026 (27th fiscal period), with operating revenue upwardly revised to 50,979 million yen (13.7% increase from previous), operating income to 34,255 million yen (16.3% increase), ordinary income to 27,912 million yen (15.2% increase), and net income to 27,911 million yen (15.3% increase). Distribution per unit remains unchanged at 5,177 yen. The primary factors for the revision are the issuance of new investment units and the acquisition of the Hyatt Regency Tokyo, leading to asset growth.

Impact on Unitholders and Future Outlook

Due to the issuance of new investment units, the number of issued investment units is expected to increase to 5,984,706 units, causing potential dilution. However, the impact on distribution per unit will be offset by allocating the reserve for temporary differences and other negative goodwill. Although operating expenses and depreciation are expected to increase with the acquisition of planned assets in the fiscal year ending December 2026, these will also be managed through the reserve. Moving forward, the Corporation will continue to promote operational efficiency and active asset management to maintain stable distributions.