Slides
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1 Table of Contents Ⅰ. Midterm Highlights 2 Ⅱ. Operating Forecast for Full Fiscal Year and Summary of Midterm Settlement of Accounts 6 Ⅲ-1. External Growth 9 Ⅲ-2. External Growth (Capital Recycling) 13 Ⅳ. Internal Growth 19 Ⅴ. Financial Conditions 27 Ⅵ. ESG 30 Ⅶ. Market Environment 32 FAQ 36 Appendix 1 JHR's Policies and Strategy 39 Appendix 2 Information of Properties 46 Appendix 3 Investors Composition and Investment Unit Price 56 Appendix 4 Summary of the Asset Management Company 59
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2 Ⅰ. Midterm Highlights
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3 (2.0%) +13.3% (5%) 0% 5% 10% 15% 20% Overall Outside China 59.1 49.1 30.0 27.2 20.4 17.1 14.7 18.9 26.6 11.5 0 20 40 60 80 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1. Market Outlook Rising Construction Costs • Construction costs up 20%+ over the past five years(*2) • Higher hotel development costs constrain new supply Gradual Recovery Potential in the Osaka Market • Osaka demand softened while other markets continue to grow • Recovery expected from 2027 onwards Expansion of Global Travel Demand(*1) • International tourist arrivals to rise from 1.52 billion in 2025 to 2.0 billion by 2030 • Tourism receipts reached a provisional record high of USD1.9 trillion in 2025 Growth in Inbound Demand to Japan • Inbound arrivals reached a record 42.68 million in 2025; spending also hit a record of JPY9.5 trillion • Demand continued to grow despite weaker arrivals from China in 2026 Solid Domestic Lodging Demand • Domestic Japanese overnight stays have modestly declined amid demographic changes • Travel spending continues to increase, supported by higher accommodation rates <Demand> <Supply> Growth Across Nearly All Markets Inbound Visitor Growth (1H 2026) New Hotel Room Supply in Japan Scheduled to openOpened New Supply (2026–2028 Avg.) 1.0% Increase in Existing Stock (thousand rooms) Tightening supply-demand dynamics driven by strong demand and limited new supply Labor Shortages in Hotel Operations • Over 70% of accommodation facilities face labor shortages(*3) • Labor shortages constrain new hotel openings, particularly for full-service hotels • Existing hotels gain a competitive advantage Source: Japan National Tourism Organization (JNTO) "Inbound Visitors Statistics" Source: Estimated by the Asset Management Company using data from "Public Health Administration Report" by Ministry of Health, Labour and Welfare (MHLW), a weekly hotel & restaurant magazine (HOTERES) and Nikkei Telecom. (*1) Source: UN Tourism, "Fifty Years of Tourism," "World Tourism Barometer" in January 2026 (*2) Source: Ministry of Land, Infrastructure, Transport and Tourism (MLIT), Construction Cost Deflator (*3) Source: Japan Tourism Agency, White Paper on Tourism in Japan 2026
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4 4,879 4,363 4,482 4,482 516 298 298 337 182 800 992 5,061 5,177 5,580 5,811 0 4,000 5,000 6,000 Gain on sale, etc. Internal growth Negative goodwill 2. Midterm Highlights Candeo Hotels Osaka Namba Acquisition Price JPY14.3Bn Appraisal Value JPY14.9Bn Building Age 9 years 2. Internal Growth 4. DPU Growth The Beach Tower Okinawa Sale Price JPY30.9Bn Gain on Sale JPY24.0Bn Building Age 22 years Asset Replacement (as of August 3, 2026) HYATT REGENCY TOKYO Acquisition Price JPY126.0Bn Appraisal Value JPY156.0Bn Proceeds JPY61.8Bn No. of Hotels Total Asset Size Acquisition Price Appraisal Value Unrealized Gain 52 properties JPY648.1Bn JPY907.6Bn JPY255.6Bn New Loans JPY65.0Bn 1H (Result) vs Previous Forecast YoY Full Year (Forecast) vs Previous Forecast YoY RevPAR (JPY) 16,599 +1.3% +4.9% 18,121 (0.8%) +4.5% 25 Hotels excl. Osaka 16,208 +2.9% +8.9% 17,752 +1.4% +7.8% GOP (JPY MM) 14,421 +2.3% +5.6% 33,522 +0.0% +6.1% 25 Hotels excl. Osaka 12,298 +6.1% +12.2% 28,763 +4.2% +11.6% 1. External Growth 3. Financial Base Enhancement End of FY12/2025 As of August 3, 2026 Increase/Decrease Appraisal Value(*2) (Properties as of December 31, 2025) JPY693.2Bn JPY736.7Bn +6.3% Unrealized Gain JPY187.1Bn JPY255.6Bn +JPY68.5Bn Appraisal-based LTV 35.3% 34.5% (0.8pt) Credit Rating (JCR) A+ AA－ One-notch upgrade Following the finalization of amount of gain on sale to be retained, the amount available for dividends rose to JPY992 per unit on a DPU basis (+JPY192 vs the previous forecast) Asset Replacement Before(*3) After(*3) Increase/Decrease Free Cash(*4) JPY7.0Bn JPY18.9Bn +JPY11.8Bn Negative Goodwill Balance JPY3.8Bn JPY6.1Bn +JPY2.3Bn (*4) Asset Replacement in July and August 2026 2026 Forecast (based on 29 Hotels with Variable Rent, etc.(*1)) (JPY) Public Offering (PO) and Asset Acquisition in March 2026 (*1) For the definition of "29 Hotels with Variable Rent, etc.," please refer to the note on P.20. The same shall apply hereinafter. (*2) For comparison purposes, the appraised value as of December 31, 2025 excludes The Beach Tower Okinawa, while the appraised value as of August 3, 2026 excludes HYATT REGENCY TOKYO and Candeo Hotels Osaka Namba. (*3) "After" figures are based on the forecast for FY12/2026 disclosed in the Midterm Financial Report for FY12/2026 dated August 26, 2026. "Before" figures are calculated by deducting the estimated impact of the asset recycling from the "After" figures. (*4) For the definition of "Free Cash," please refer to (*3) on P.28. For details of "JPY2.3Bn," please refer to (*1) on P.16. (*5) "PO" is based on the forecast announced in the "Notice Concerning Revision of Operating Forecast for the Fiscal Year EndingDecember 2026 (27th Period)" dated February 25, 2026, and "Previous Forecast" is based on the "Notice Concerning Revision of Operating and Dividend Forecasts for the Fiscal Year Ending December 2026 (27th Period)" dated July 17, 2026. The same shall apply hereinafter. (*6) Negative goodwill utilization (JPY516): JPY365 for Hilton Tokyo Odaiba renovation impacts, JPY70 for HYATT REGENCY TOKYO depreciation, and JPY81 for dilution from the PO in March 2026. +14.8% Result PO(*5) Previous Forecast(*5) Current Forecast FY12/2025 FY12/2026 (*6) +12.2%
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6 Ⅱ. Operating Forecast for Full Fiscal Year and Summary of Midterm Settlement of Accounts
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7 1. Operating Forecasts for FY12/2026 (1) Main Factors of Difference vs 2025 Fixed Rent 29 Hotels with Variable Rent, etc. +JPY294MM Others +JPY2,986MM (Sales in 2026(*3) -JPY214MM) (Acquisition in 2026(*4) +JPY3,119MM) (Total) +JPY3,281MM Variable Rent 29 Hotels with Variable Rent, etc. +JPY2,098MM Others +JPY2,495MM (Hilton Tokyo Odaiba -JPY1,685MM) (Acquisition in 2026 +JPY3,248MM) (Total) +JPY4,593MM (2) Main Factors of Difference vs Previous Forecast Fixed Rent Others -JPY1MM (Total) -JPY1MM Variable Rent 29 Hotels with Variable Rent, etc. -JPY11MM Others +JPY43MM (Total) +JPY31MM FY12/2025 (26th Period) FY12/2026 (27th Period) ①Difference from Previous Year ②Difference from Previous Forecast Actual (A) Previous Forecast (B) Current Forecast (C) (C)–(A) (C)–(B) (JPY MM) % % Proper ties No. of Properties 51 52 52 1 – Acquisition Price 515,391 648,101 648,101 132,710 25.7% – – Profit and Loss Operating Revenue 45,564 75,066 75,124 29,559 64.9% 58 0.1% Real Estate Operating Revenue 43,218 50,994 51,052 7,834 18.1% 58 0.1% Fixed Rent 45.9% 19,293 45.2% 22,576 45.2% 22,574 3,281 17.0% (1) (0.0%) Variable Rent 54.1% 22,780 54.8% 27,342 54.8% 27,374 4,593 20.2% 31 0.1% Other Revenue 1,143 1,075 1,103 (40) (3.5%) 27 2.6% Gain on Sales of Properties 2,346 24,071 24,071 21,725 926.0% – – NOI(*2) 38,554 45,809 45,853 7,298 18.9% 43 0.1% Depreciation 6,694 7,870 7,856 1,162 (13) Loss on Retirement of Noncurrent Assets, etc. 207 51 55 (151) 4 NOI after Depreciation(*2) 31,652 37,887 37,940 6,288 19.9% 53 0.1% SG&A 2,945 3,738 3,640 694 (98) Operating Income 31,052 58,220 58,372 27,319 88.0% 151 0.3% Ordinary Income 26,748 51,878 52,100 25,352 94.8% 222 0.4% Net Income 27,145 51,876 52,099 24,954 91.9% 222 0.4% Dividend Use of Negative Goodwill 468 312 316 (151) (32.4%) 4 1.3% Reserve for Tax Purpose Reduction Entry (1,818) – – 1,818 – – – Reserve for advanced depreciation under special provisions for property replacement – (19,240) (18,107) 18,107 – 1,133 – Total Dividends 25,795 32,944 34,308 8,512 33.0% 1,363 4.1% No. of Units 5,097,006 5,904,006 5,904,006 807,000 15.8% – – Dividend per Unit (JPY) 5,061 5,580 5,811 750 14.8% 231 4.1% (*1) For details, please refer to the Midterm Financial Report for FY12/2026 dated August 26, 2026. (*2) 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 after depreciation = Real estate operating revenue − Real estate operating costs (*3) The figure shown is the impact amount due to the sale of The Beach Tower Okinawa sold in 2026. (*4) The figure shown is the impact amount due to the acquisition of HYATT REGENCY TOKYO and Candeo Hotels Osaka Namba acquired in 2026. The same shall apply hereinafter.
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8 2. Midterm Results for FY12/2026 Main Factors of Difference Fixed Rent 29 Hotels with Variable Rent, etc. +JPY294MM Others +JPY1,170MM (Acquisition in 2026 +JPY1,090MM) (Total) +JPY1,464MM Variable Rent 29 Hotels with Variable Rent, etc. +JPY947MM Others +JPY1,009MM (Hilton Tokyo Odaiba -JPY714MM) (Acquisition in 2026 +JPY1,365MM) (Total) +JPY1,957MM FY12/2025 (26th Period) FY12/2026 (27th Period) Difference from Previous Year Midterm Result (A) Midterm Result (B) (B)–(A) (JPY MM) % Proper ties No. of Properties 51 52 1 Acquisition Price 515,391 641,391 126,000 24.4% Profit and Loss Operating Revenue 21,481 22,568 1,086 5.1% Real Estate Operating Revenue 19,135 22,568 3,433 17.9% Fixed Rent 50.9% 9,459 49.6% 10,924 1,464 15.5% Variable Rent 49.1% 9,126 50.4% 11,083 1,957 21.5% Other Revenue 549 559 10 1.9% Gain on Sales of Properties 2,346 – (2,346) – NOI 16,859 20,070 3,210 19.0% Depreciation 3,157 3,782 624 Loss on Retirement of Noncurrent Assets, etc. 110 5 (105) NOI after Depreciation 13,590 16,282 2,692 19.8% SG&A 1,479 1,595 115 Operating Income 14,457 14,687 230 1.6% Ordinary Income 12,367 11,789 (577) (4.7%) Net Income 12,764 11,789 (975) (7.6%) (*) For details, please refer to the Midterm Financial Report for FY12/2026 dated August 26, 2026.
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9 Ⅲ-1. External Growth
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10 117,706 131,227 166,237 205,408 302,110 398,770 439,390 437,510 525,910 493,330 485,480 483,110 525,740 631,040 703,630 907,670 122,285 130,883 158,902 173,429 225,723 286,801 319,474 309,370 374,508 370,031 363,542 363,542 396,918 453,171 515,391 648,101 Appraisal Value Acquisition Price 1. Growth in Asset Size (*1) The asset size refers to the sum of acquisition price or the sum of appraisal value at the end of each fiscal period. The same shall apply hereinafter. (*2) The total acquisition price of properties acquired during each period (with the total appraisal value at time of acquisition shown in parentheses below) or the total sale price of properties sold (with the total appraisal value at time of sale shown in parentheses below) is indicated. (*3) JHR acquired the land that is part of the site of Oriental Hotel Universal City for JPY753 million on July 30, 2021. (*4) The figure shown includes the acquisition price of JPY62 million (appraisal value of JPY65 million) for the land adjacent to OKINAWA HARBORVIEW HOTEL, acquired on October 4, 2024. (*5) The appraisal value of Washington Hotel Plaza Hakata, Nakasu (transferred on January 30, 2025) is based on the transfer price. April 2012 (merger) FY12/2012 FY12/2013 FY12/2014 FY12/2015 FY12/2016 FY12/2017 FY12/2018 FY12/2019 FY12/2020 FY12/2021 FY12/2022 FY12/2023 FY12/2024 FY12/2025 As of Aug. 3, 2026 No. of Properties 28 28 28 30 36 41 44 41 43 42 41 41 47 51 51 52 No. of Acquisition – 2 2 3 9 5 3 – 2 – – – 6 4 1 2 Acquisition Price(*2) (Appraisal Value) – 10,800 (12,480) 32,650 (36,140) 15,797 (15,910) 57,025 (59,230) 61,077 (63,680) 32,673 (34,030) – 65,138 (68,850) – 753(*3) (763) – 33,376 (39,340) 56,252(*4) (69,065) 64,350 (71,700) 140,320 (170,900) No. of Disposition – 2 2 1 3 – – 3 – 1 1 – – – 1 1 Sale Price(*2) (Appraisal Value) – 842 (1,170) 2,680 (3,497) 700 (1,090) 4,890 (4,644) – – 12,150 (10,460) – 8,000 (8,950) 11,300 (9,900) – – – 4,610 (4,610)(*5) 30,900 (10,400) Continue acquiring highly competitive hotels in regions with strong long-term leisure demand External Growth (FY2024 to FY2026) Trend of JHR's Total Asset Size(*1) (JPY MM) FY2026FY2025FY2024 HOTEL AMANEK Shinjuku-Kabukicho. JPY8.8Bn OKINAWA HARBORVIEW HOTEL JPY21.5Bn Southern Beach Hotel & Resort OKINAWA JPY16.2Bn MIMARU Tokyo Shinjuku West JPY9.6Bn JPY64.3Bn Hilton Fukuoka Sea Hawk Washington Hotel Plaza Hakata, Nakasu JPY4.6Bn (Sale Price) Sale Public Offering HYATT REGENCY TOKYO JPY126.0Bn JPY14.3Bn Candeo Hotels Osaka Namba The Beach Tower Okinawa JPY30.9Bn (Sale Price) SalePublic Offering
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11 Oriental Hotel 26.0% Hilton 24.2%Hyatt 13.6% IHG 2.4% Accor 5.6% Sheraton 3.2% Okura Nikko 5.3% Others 19.6% Oriental Hotel 16.1% Hilton 28.0% Hyatt 19.4% IHG 4.2% Accor 3.7% Sheraton 2.7% Okura Nikko 5.1% Others 20.9% Luxury 14.4% Upper-middle 55.2% Mid-price 28.3% Economy 2.2% Hokkaido 4.5% Tokyo 28.0% Kanto (ex. Tokyo) 15.2% Chubu 2.8% Osaka 8.7% Kansai (ex. Osaka) 5.8% Chugoku 3.9% Kyushu (ex. Okinawa) 17.8% Okinawa 13.5% Limited-service 26.9% Full-service 54.7% Resort 18.3% Luxury 12.0% Upper-middle 57.9% Mid-price 28.2% Economy 1.9% Hokkaido 3.5% Tokyo 37.5% Kanto (ex. Tokyo) 12.5% Chubu 2.7% Osaka 10.2% Kansai (ex. Osaka) 5.3% Chugoku 3.3% Kyushu (ex. Okinawa) 13.5% Okinawa 11.5% Limited-service 27.0% Full-service 59.6% Resort 13.4% 2. Changes in Portfolio HYATT REGENCY TOKYO increases the portfolio's exposure to the Tokyo area and full-service hotels Acquiring a HYATT-branded property has boosted the investment ratio of international hotel brands in JHR's portfolio International brands 58.0% (FY12/2025: 48.4%) Tokyo 37.5% (FY12/2025: 22.7%) By Hotel Grade(*1) By Type(*1) (as of August 3, 2026) Based on rental income(*2)Based on acquisition price Based on rental income(*2)Based on acquisition price Tokyo 28.0% (FY12/2025: 16.7%) International brands 49.0% (FY12/2025: 41.0%) By Area(*1) By Hotel Brand(*1) Based on rental income(*2)Based on acquisition price Based on rental income(*2)Based on acquisition price Full-service 59.6% (FY12/2025: 50.5%) Full-service 54.7% (FY12/2025: 46.0%) (*1) Percentages are rounded to one decimal place. (*2) Rental income-based figures are calculated based on the forecast for FY12/2026 announced in the Midterm Financial Report for FY12/2026 dated August 26, 2026, adjusted for property-specific factors. (*3) "HMJ Ratio" refers to the percentage of hotels leased by Hotel Management Japan Co., Ltd, a group company of JHRA and its subsidiaries. HMJ Ratio(*3) 76.3% HMJ Ratio(*3) 74.4% Luxury Upper-middle 69.5% (FY12/2025: 61.3%) Luxury Upper-middle 69.8% (FY12/2025: 59.2%)
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12 3. Improvement in Profitability and Asset Value After Acquisition Post-acquisition performance exceeded initial levels at the acquisition through Active Asset Management, etc. La’gent Stay Sapporo Odori Oriental Hotel Kyoto Rokujo Hotel Oriental Express Fukuoka Nakasukawabata MIMARU Tokyo Shinjuku West HOTEL AMANEK Shinjuku-Kabukicho. Hilton Fukuoka Sea Hawk Acquisition Date Sep. 2023 NOI Yield At acquisition (Result) 4.7% FY12/2026 (Forecast) 7.6% Acquisition Price JPY10,020MM Appraisal Value At acquisition JPY10,800MM As of end of Jun. 2026 JPY13,000MM Acquisition Date Sep. 2023 NOI Yield At acquisition (Result) 5.3% FY12/2026 (Forecast) 9.3% Acquisition Price JPY4,446MM Appraisal Value At acquisition JPY5,920MM As of end of Jun. 2026 JPY7,000MM Acquisition Date Sep. 2023 NOI Yield At acquisition (Result) 5.2% FY12/2026 (Forecast) 12.7% Acquisition Price JPY4,460MM Appraisal Value At acquisition JPY6,070MM As of end of Jun. 2026 JPY6,760MM Acquisition Date Jul. 2024 NOI Yield At acquisition (Result) 4.4% FY12/2026 (Forecast) 6.0% Acquisition Price JPY9,645MM Appraisal Value At acquisition JPY11,700MM As of end of Jun. 2026 JPY15,200MM Acquisition Date Jul. 2024 NOI Yield At acquisition (Result) 5.5% FY12/2026 (Forecast) 6.1% Acquisition Price JPY8,845MM Appraisal Value At acquisition JPY12,800MM As of end of Jun. 2026 JPY13,400MM Acquisition Date Feb. 2025 NOI Yield At acquisition (Result) 6.2% FY12/2026 (Forecast) 6.7% Acquisition Price JPY64,350MM Appraisal Value At acquisition JPY71,700MM As of end of Jun. 2026 JPY76,600MM (*) At acquisition (Result), NOI yield is calculated using annualized NOI based on pre-acquisition operating results provided by the seller, divided by the acquisition price. For FY12/2026 (Forecast), NOI yield is calculated using forecast NOI disclosed in the Midterm Financial Report dated August 26, 2026, divided by the acquisition price.
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13 Ⅲ-2. External Growth (Capital Recycling)
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14 Maintain NOI while enhancing portfolio quality through asset replacement into newer property Potential for rent increases given the current low rent burden relative to hotel revenue 1. Capital Recycling: Enhancing Portfolio Quality The Beach Tower Okinawa Candeo Hotels Osaka Namba Asset Replacement Disposed Asset Acquired Asset • Stable revenue under a long- term fixed rent lease • Explored options to realize upside potential, including a sale upon lease expiry • Executed a short-term lease, providing buyers with multiple investment scenarios and achieving a sale at approx. 3x appraisal value • Stable revenue under a fixed rent lease at a level comparable to the asset to be sold • Upside potential from current low rent burden relative to hotel revenue and the Osaka IR effect • Opportunity to realize upside through rent increases upon lease expiry Acquisition Date August 3, 2026 Acquisition Price JPY14,320MM Appraisal Value(*1) JPY14,900MM Building Age(*2) 9.2 years NOI(*3) JPY492MM NOI after Depreciation(*3) JPY424MM Fixed Rent Undisclosed(*4) Variable Rent None Lease Structure Fixed-term building lease contract Lease Term June 2017 to June 2047 Sale Date July 31, 2026 Sale Price JPY30,900MM Appraisal Value(*1) JPY10,400MM Building Age(*2) 22.3 years NOI(*3) JPY464MM NOI after Depreciation(*3) JPY340MM Fixed Rent JPY511MM (per year) Variable Rent 10% of excess GOP Lease Structure Fixed-term building lease contract Lease Term Current lease: June 2026 to June 2027 Previous lease: June 2006 to June 2026 (*1) The appraisal values are as of FY12/2025 for the asset to be sold and as of May 31, 2026 for the asset to be acquired. The same applies hereinafter. (*2) The building ages are as of July 17, 2026. (*3) For the disposed asset, actual NOI and NOI after depreciation for FY12/2025 are presented. For the acquired asset, annualized forecast figures calculated on the assumptions announced in the Midterm Financial Report dated August 26, 2026, are presented. (*4) This information is not disclosed because we have not obtained the lessee's consent.
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15 6,315 Appraisal value 10,400 30,900 Acquisition of Candeo Hotels Osaka Namba 14,873 Retained earnings 9,549 Dividends 5,964 Sale costs 512 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 Book Value Sale Price Uses of Sale Proceeds Internal growth 298 Internal growth 337 Gain on sale, etc. 9925,177 5,811 0 4,000 4,500 5,000 5,500 6,000 Initial Forecast Current Forecast 2. JPY24.0 billion Gain on Sale at 5x Book Value Expected Use of Sale Proceeds (Forecast) Impact on DPU (FY2026 Forecast) Gain on sale JPY24.0Bn Sale at 5x Book Value (JPY MM) (JPY) +12.2% Sale proceeds to be used for acquisitions, retained earnings for growth investments, and distributions FY2026 forecast DPU up 12.2% (+JPY634), supported by the gain on sale (*2) (*3) (*1) The book value is as of the end of May 2026. (*2) Forecast figures announced in the Financial Report dated February 25, 2026. (*3) Forecast figures announced in the Midterm Financial Report dated August 26, 2026. (*4) Revised from the figures disclosed in "Supplementary Material for Today's Press Releases" dated July 17, 2026, following the finalization of the amount of gain on sale to be retained. The same shall apply hereinafter. Targeting Future DPU Growth (*1) Growth Investment Capital JPY11.8Bn (including JPY2.3Bn retained through reduced use of negative goodwill) • Large-scale renovations to enhance revenue • New property acquisitions
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16 7,018 18,912 Before After 3,828 6,173 Before After 48.5% 46.9% 35.3% 34.5% Before After Total Asset-based LTV Appraisal-based LTV +JPY11.8Bn For future large-scale renovations and property acquisitions +JPY2.3Bn(*1) Supporting future stable distributions -0.8pt Borrowing capacity increased by JPY13.7Bn(*2) 3. Strengthened Financial Position through Effective Use of Disposal Gains Increase in Free Cash Retention of Negative Goodwill Reduction in Appraisal-based LTV Free Cash Balance (Expected as of FY12/2026) Negative Goodwill Balance (Expected after FY12/2026) Interest-bearing Debt Ratio (Expected as of August 3, 2026) (JPY MM) (JPY MM) (*1) By reinvesting this gain on sale, we plan to reduce the use of negative goodwill from the original plan of JPY2,346 million. The breakdown of the JPY2,346 million is as follows: JPY1,859 million to cover the cost of large-scale renovation work for Hilton Tokyo Odaiba; JPY416 million to cover depreciation expenses for HYATT REGENCY TOKYO; and JPY69 million that was intended to be allocated to address dilution resulting from the public offering conducted in March 2026. In the forecast announced in the "Notice Concerning Revision of Operating Forecast for the Fiscal Year Ending December 2026 (27th Period)," dated February 25, 2026, the use of JPY483 million of negative goodwill was anticipated to address dilution. However, the planned use of negative goodwill decreased by JPY414 million to JPY69 million due to a reduction in the amount required to address dilution following the finalization of the number of investment units to be issued in the new investment unit offering. (*2) Borrowing capacity represents an approximate amount estimated by JHRA, based on the difference in maximum borrowings before and after the asset replacement, assuming an appraisal-value LTV limit of 40% in each case. (*3) "Total asset-based LTV" and "Appraisal-based LTV" are calculated based on total interest-bearing debt and total assets as of June 2026, reflecting the impact of the asset replacement. Appraisal-based LTV is calculated using total assets plus unrealized gains and losses as the denominator. (*4) "After" is calculated based on the forecast disclosed in the Midterm Financial Report dated August 26, 2026. "Before" is calculated by deducting the impact of the asset replacement from the corresponding "After" figures. +JPY11.8Bn Retained a portion of the gain on sale to support future growth Expanded borrowing capacity through a lower appraisal-based LTV +JPY2.3Bn (*4) (*4) (*4) (*4) -0.8pt -1.6pt (*3) (*3) (*4) (*4)
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17 NOI Yield(*2) 5.2% 9.4% NOI Yield(*1) 6.6% 15.6% 4. Successful Realization of Upside Potential Hakone Setsugetsuka Hotel Oriental Express Ginza West The Beach Tower Okinawa Rent Increase Upside Rebranding Upside Asset Sale Upside (Sale in July 2026) Significant upside realized upon lease expiry for assets with low rent burden relative to hotel revenue Maximizing unitholder value through rent increases, rebranding and strategic asset sales (*1) The NOI yield under the former lease (before) is calculated by dividing the actual NOI for FY12/2025 by the acquisition price. The NOI yield under the new lease (after) is calculated by dividing the estimated NOI, based on the actual GOP for FY12/2025, by the acquisition price. (*2) The NOI yield under the former lease (before) is calculated by dividing the annualized actual NOI for the period from April to December 2025 by the acquisition price. The NOI yield under the new lease (after) is calculated by dividing the annualized forecast NOI for the period from April to December 2026 based on the assumptions underlying the forecast announced in the Midterm Financial Report dated August 26, 2026, by the acquisition price. • Introduced variable rent through negotiations, significantly increasing NOI yield • Further GOP growth potential through CAPEX investment after nearly 20 years of operation • Changed lessee to HMJ, capturing upside through rebranding and improved lease terms • Further GOP growth through enhanced revenue management and operational improvements • Realized upside through the sale • Achieved a sale at approx. 3x appraisal value, maximizing unitholder value Appraisal Value JPY10.4Bn JPY30.9Bn Before After Fixed Rent JPY294MM JPY294MM Variable Rent － 50% of excess GOP Lease Term December 2006 to October 2026 November 2026 to May 2028 Appraisal Value JPY5,630MM (as of December 31, 2025) JPY9,110MM (as of June 30, 2026) Before After Fixed Rent JPY204MM JPY204MM Variable Rent Revenue-sharing structure 95% of excess AGOP Lease Term April 2023 to March 2026 April 2026 to December 2036 Appraisal Value JPY10,300MM (as of December 31, 2025) JPY11,800MM (as of June 30, 2026) Before At Sale Low rent burden relative to hotel revenue Significant gain on sale reflecting future rent upside potential JPY10,400MM (Appraisal value) JPY30,900MM (Sale price) Sale Price
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18 5. Overview of the Asset (Candeo Hotels Osaka Namba) Located in Osaka's Minami district, a major destination for domestic and inbound leisure demand, and completed in 2017 All rooms accommodate two or more guests, with an open-air rooftop spa and other facilities differentiating the hotel from competitors Property Overview Room Mix Room Category No. of Rooms Capacity (Guests) Superior Queen 87 2 Superior Twin / Corner Twin 142 2 Deluxe King 23 2 Executive Twin 178 3 Executive Deluxe King 64 3 Universal Twin 1 2 Luxury Suite 1 2 Total / Average 496 2.5 Acquisition Price JPY14,320MM Appraisal Value JPY14,900MM Hotel Type Limited-service Grade Mid-price Location 2-2-5 Higashi-Shinsaibashi, Chuo-ku, Osaka City, Osaka Acreage of Land 1,674.45㎡ Total Floor Space 14,095.07㎡ Structure and Stories S; 17 stories above ground Completion May 2017 No. of Guest Rooms 496 rooms Average Room Size 18.1㎡ Attached Facilities Restaurant, Public bath, Open-air rooftop spa, Sauna, Relaxation area, Laundry room Rent Type Fixed rent Lease Term June 1, 2017 to June 30, 2047 Hotel Lessee Candeo Hospitality Management, Inc.
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19 Ⅳ. Internal Growth
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20 81,890 85,332 85,375 55,549 58,066 58,542 23,220 24,080 23,620 3,121 3,185 3,213 0 20,000 40,000 60,000 80,000 100,000 31,583 33,522 33,516 0 10,000 20,000 30,000 40,000 50,000 First Half Second Half Full Year 2025 Result 2026 Result 2026 Previous Forecast 2025 Result 2026 Current Forecast 2026 Previous Forecast 2025 Result 2026 Current Forecast 2026 Previous Forecast 15,817 16,599 16,379 18,830 19,619 20,130 17,336 18,121 18,270 19,264 19,890 19,764 22,155 22,203 23,195 20,746 21,089 21,533 82.1% 83.5% 82.9% 85.0% 88.4% 86.8% 83.6% 85.9% 84.8% 0% 50% 100% 0 10,000 15,000 20,000 25,000 30,000 1. Hotel Performance (FY2026 Forecast) Full-year RevPAR +4.5% YoY and revenue +4.2%, led by the rooms department GOP margin +0.7pt and GOP +6.1% YoY, in line with the previous forecast, driven by revenue growth and cost management Result and Forecast of Key Performance Indicators (Rooms Dept.) (29 Hotels with Variable Rent, etc.(*)) Revenue GOP (JPY) +4.9% +4.2% +4.5% 2025 Result 2026 Current Forecast 2026 Previous Forecast 2025 Result 2026 Current Forecast 2026 Previous Forecast (JPY MM) (JPY MM) 39.3%38.6% 39.3% +4.2% +4.5% +3.7% +6.1% +0.7pt +3.3% +1.3pt +0.2% +3.4pt +2.4pt +1.7% (*) The 29 Hotels with Variable Rent, etc. refer to the following 29 hotels: Kobe Meriken Park Oriental Hotel, Oriental Hotel Tokyo Bay, Namba Oriental Hotel, Hotel Nikko Alivila, Oriental Hotel Hiroshima, Oriental Hotel Universal City, Oriental Hotel Okinawa Resort & Spa, Sheraton Grand Hiroshima Hotel (main facility of ACTIVE-INTER CITY HIROSHIMA), Oriental Hotel Fukuoka Hakata Station, Holiday Inn Osaka Namba, Hotel Oriental Express Fukuoka Tenjin, Hilton Tokyo Narita Airport, International Garden Hotel Narita, Hotel Nikko Nara, Hotel Oriental Express Osaka Shinsaibashi, Oriental Hotel Kyoto Rokujo, Hotel Oriental Express Fukuoka Nakasukawabata, Hotel JAL City Kannai Yokohama, Southern Beach Hotel & Resort OKINAWA, Hilton Fukuoka Sea Hawk, ibis Styles Kyoto Station, ibis Styles Sapporo, Mercure Sapporo, Mercure Okinawa Naha, Mercure Yokosuka, the b suidobashi, the b ikebukuro, the b hachioji and the b hakata. Rooms Dept. F&B Dept. Others * GOP ratio (vs revenue) Occupancy (right axis) ADR (left axis) RevPAR (left axis)
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21 15,232 11,127 10,219 13,867 19,711 13,061 16,142 15,031 18,510 17,336 12,639 10,783 15,095 23,865 14,845 17,790 16,745 21,836 18,121 13,313 11,119 16,345 20,886 15,297 19,435 18,228 23,942 0 10,000 15,000 20,000 25,000 2024 (Result) 2025 (Result) 2026 (Forecast) Changes in RevPAR by Area (29 Hotels with Variable Rent, etc.) RevPAR grew by 19.0% over the past two years and is expected to exceed the previous year level in all regions except Osaka in2026 Area All areas Hokkaido Tokyo Kanto (excl. Tokyo) Osaka Kansai (excl. Osaka) Chugoku Kyushu (excl. Okinawa) Okinawa 2024 vs 2025 2025 vs 2026 +13.8% +4.5% +13.6% +5.3% +5.5% +3.1% +8.9% +8.3% +21.1% (12.5%) +13.7% +3.0% +10.2% +9.2% +11.4% +8.9% +18.0% +9.6% 2024 vs 2026 +19.0% +19.6% +8.8% +17.9% +6.0% +17.1% +20.4% +21.3% +29.4% No. of Properties 29 2 3 5 4 4 2 5 4 Property Name •Mercure Sapporo •ibis Styles Sapporo •the b suidobashi •the b ikebukuro •the b hachioji •Oriental Hotel Tokyo Bay •Hilton Tokyo Narita Airport •International Garden Hotel Narita •Hotel JAL City Kannai Yokohama •Mercure Yokosuka •Namba Oriental Hotel •Holiday Inn Osaka Namba •Hotel Oriental Express Osaka Shinsaibashi •Oriental Hotel Universal City •Kobe Meriken Park Oriental Hotel •Oriental Hotel Kyoto Rokujo •ibis Styles Kyoto Station •Hotel Nikko Nara •Oriental Hotel Hiroshima •Sheraton Grand Hiroshima Hotel (main facility of ACTIVE-INTER CITY HIROSHIMA) •Oriental Hotel Fukuoka Hakata Station •Hotel Oriental Express Fukuoka Tenjin •Hotel Oriental Express Fukuoka Nakasukawabata •the b hakata •Hilton Fukuoka Sea Hawk •Hotel Nikko Alivila •Oriental Hotel Okinawa Resort & Spa •Mercure Okinawa Naha •Southern Beach Hotel & Resort OKINAWA 2. RevPAR by Area (JPY)
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22 25 Hotels (excl. Osaka) 1H 2H Full Year RevPAR +8.9% +7.0% +7.8% ADR +6.6% +2.4% +4.3% Occupancy +1.8pt +3.8pt +2.8pt 4 Osaka Hotels (located in Osaka) 1H 2H Full Year RevPAR (14.2%) (10.9%) (12.5%) ADR (12.6%) (11.3%) (11.9%) Occupancy (1.7pt) +0.4pt (0.7pt) 29 Hotels with Variable Rent, etc. 1H 2H Full Year RevPAR +4.9% +4.2% +4.5% 3. Solid Growth outside Osaka; Gradual Recovery in Osaka from 2027 JHR KPIs: Actual and Forecast (2026, YoY) Area Hotel RevPAR Growth YoY (FY2026 Forecast) Okinawa Oriental Hotel Okinawa Resort & Spa +13.5% Hotel Nikko Alivila +9.3% Kyushu Oriental Hotel Fukuoka Hakata Station +11.6% Hilton Fukuoka Sea Hawk +8.6% Chugoku Sheraton Grand Hiroshima Hotel +9.9% Key Drivers of Portfolio Performance Current View • Chinese demand slowdown has weighed on Osaka • Inbound demand outside China continues to grow Demand Outlook • Recovery from 2027 driven by demand growth from markets outside China • Japan's first integrated resort (IR), opening in autumn 2030, will support long-term demand growth Supply Outlook • New supply in 2027 to 2028 is projected at only approx. 800 rooms (0.6% of existing stock) Key Takeaways • Demand growth and limited supply to further tighten market conditions • Osaka to return to growth from 2027 onwards Osaka Market Outlook Portfolio RevPAR is forecasted to increase 4.5% YoY despite lower guest nights in the market • Capturing inbound demand outside China drove RevPAR growth • Renovation benefits continued at Oriental Hotel Okinawa Resort & Spa
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23 Hotel 2024 2025 2026 2026 RevPAR Forecast Kobe Meriken Park Oriental Hotel (323 rooms) Guest room renovation (79 rooms): JPY385MM JPY21,995 (vs 2019: +34.1%) Oriental Hotel Tokyo Bay (511 rooms) Guest room renovation (216 rooms): JPY992MM Guest room renovation (196 rooms): JPY900MM JPY 29,568 (vs 2019: +41.9%) Oriental Hotel Okinawa Resort & Spa (361 rooms) Guest room renovation (192 rooms): JPY962MM JPY 34,544 (vs 2019: +96.5%) Namba Oriental Hotel (258 rooms → 267 rooms) Newly established of guest rooms (9 rooms) and lounge, etc.: JPY780MM JPY 22,991 (vs 2019: +33.0%) La’gent Stay Sapporo Odori (219 rooms) Guest room renovation (19 rooms): JPY45MM Guest room renovation (200 rooms): JPY635MM JPY 20,561 (vs 2019: +59.1%) OKINAWA HARBORVIEW HOTEL (352 rooms) Full renovation: JPY3,203MM Full renovation: JPY643MM JPY19,363(*1) (vs 2019: +75.3%) Total JPY3,165MM JPY4,738MM JPY643MM(*2) 4. Enhancing Hotel Competitiveness through Strategic CAPEX (*1) As OKINAWA HARBORVIEW HOTEL was under renovation during 1H 2026, forecasted RevPAR for 2H is shown. (*2) Hilton Tokyo Odaiba and Hilton Fukuoka Sea Hawk are not included because the renovation works are still ongoing as of the date of this material.
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24 5. Value Creation through Operator Changes and Rebranding Oriental Hotel Fukuoka Hakata Station (former Hotel Centraza Hakata) April 2016 Acquired April 2019 Changed lessee to HMJ Group RevPAR (JPY) Hotel Revenue (JPY MM) Rent (JPY MM) NOI Yield (*2) Pre-rebranding (2017) 11,071 2,464 865 8.4% Post-rebranding (2026 Forecast) 26,968 4,122 2,273 26.4% Change +143.6% +67.3% +162.6% +17.9pt (*1) RevPAR, hotel revenue and rent for Hotel Oriental Express Ginza West are based on April-December results for each year, and NOI yield is annualized based on the same period. (*2) NOI yield is based on book value. Oriental Hotel Okinawa Resort & Spa (former Okinawa Marriott Resort & Spa) July 2015 Acquired October 2021 Changed lessee to HMJ Group April 2024 Renovation completed RevPAR (JPY) Hotel Revenue (JPY MM) Rent (JPY MM) NOI Yield (*2) Pre-rebranding (2019) 17,577 3,693 937 5.6% Post-rebranding (2026 Forecast) 34,544 6,268 2,113 12.3% Change +96.5% +69.7% +125.5% +6.6pt September 2012 Acquired December 2021 Changed lessee to HMJ Group July 2022 Completed full renovations Oriental Hotel Universal City (former Hotel Keihan Universal City) RevPAR (JPY) Hotel Revenue (JPY MM) Rent (JPY MM) NOI Yield (*2) Pre-rebranding (2019) 17,620 2,122 700 11.3% Post-rebranding (2026 Forecast) 25,223 3,515 1,414 19.4% Change +43.1% +65.6% +102.0% +8.0pt Hotel Oriental Express Fukuoka Tenjin (former HOTEL ASCENT FUKUOKA) August 2016 Acquired June 2021 Changed lessee to HMJ Group Rebranded Completed full renovations RevPAR (JPY) Hotel Revenue (JPY MM) Rent (JPY MM) NOI Yield (*2) Pre-rebranding (2019) 6,219 632 334 5.9% Post-rebranding (2026 Forecast) 15,505 1,702 1,053 17.4% Change +149.3% +169.5% +214.9% +11.6pt Southern Beach Hotel & Resort OKINAWA July 2024 Acquired December 2025 Changed lessee to HMJ Group RevPAR (JPY) Hotel Revenue (JPY MM) Rent (JPY MM) NOI Yield (*2) Pre-rebranding (2025) 14,739 3,727 769 4.4% Post-rebranding (2026 Forecast) 15,489 4,029 1,012 5.9% Change +5.1% +8.1% +31.6% +1.4pt March 2023 Acquired April 2026 Changed lessee to HMJ Group Hotel Oriental Express Ginza West(*1) (former Sotetsu Fresa Inn Shimbashi-Karasumoriguchi) RevPAR (JPY) Hotel Revenue (JPY MM) Rent (JPY MM) NOI Yield (*2) Pre-rebranding (2025) 15,286 925 347 5.2% Post-rebranding (2026 Forecast) 16,318 1,003 619 9.3% Change +6.8% +8.4% +78.2% +4.1pt
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25 2,536 3,197 2,738 3,307 3,897 8,112 830 1,300 736 443 936 1,113 1,295 3,165 4,738 3,728 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 (JPY MM) 6. Capital Expenditure (CAPEX) and Depreciation Hotel Detail Purpose Areas to be Renovated Total Amount Period OKINAWA HARBORVIEW HOTEL Full-scale renovation Repositioning through full-scale upgrade, including revamped garden pool and lounge Entire building JPY3,850MM Jan. 2025 to May 2026 Hilton Tokyo Odaiba Full-scale renovation High-quality and full-scale renovations comparable to luxury hotels in central Tokyo aimed at attracting higher-paying guests Entire building JPY10,851MM Feb. 2026 to Dec. 2027 Hilton Fukuoka Sea Hawk Guest room renovation, etc. Refining earning capabilities through soft renovations(*), etc. Executive floor, guest rooms, etc. JPY600MM Jun. to Sep. 2026 HYATT REGENCY TOKYO Addition of guest rooms, etc. Improving profitability of low-occupancy rooms and capturing new demand Guest rooms JPY1,500MM 2027 FY12/2021 FY12/2022 FY12/2023 FY12/2024 FY12/2025 FY12/2026 (Forecast) Total CAPEX 3,367 4,497 4,769 6,917 9,572 12,954 Depreciation 4,804 4,787 5,083 5,617 6,694 7,856 Key Renovations (including completed and anticipated) In principle, CAPEX is managed within depreciation. However, CAPEX is being actively implemented amid recently favorable market conditions (*) "Soft renovation" refers to initiatives that improve a property's competitiveness and profitability through minor upgrades, such as interior updates, design modifications, or partial equipment replacements, without changing the structure or floor plan. Depreciation CAPEX Ⅰ Capital investment related to renewal of buildings, facilities, and equipment which is required to maintain proper values of properties CAPEX Ⅱ Capital investment for fixtures, furniture and equipment that are not directly related to building structures or facilities but necessary for operating Hotels CAPEX Ⅲ Strategic capital investment for renewals of guest rooms, banquet rooms, restaurant and others in order to maintain or to improve the competitiveness of the hotels
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26 Revision Date Hotel Revision Details NOI Yield(*1) Rent Structure Lease Type 2026 January Chisun Hotel Kamata • Raised variable rent rate • Maintained fixed rent 11.1% 11.4% Variable Fixed-lease April dormy inn Kumamoto • Lowered threshold and raised variable rent rate • Maintained fixed rent • Introduced GOP-linked variable rent at the previous renewal 11.3% 15.5% Fixed + Variable Fixed-lease Hotel Oriental Express Ginza West • Changed from revenue sharing to GOP-linked variable rent • Maintained fixed rent • Changed tenant to HMJ 5.2% 9.4% Fixed + Revenue sharing Fixed + Variable Fixed-lease October Hakone Setsugetsuka • Introduced GOP-linked variable rent • Maintained fixed rent 6.6% 15.6% Fixed Fixed + Variable Fixed-lease 2027 January the b suidobashi • Increased variable rent through AGOP calculation changes • Raised fixed rent to enhance revenue stability 15.6% 16.1% Fixed + Variable Fixed-lease 7. NOI Yield Enhancement through Rent Revisions Rent Revision Track Record (*1) NOI Yield is calculated by annualizing rent under the lease contract before and after the revision based on each hotel's FY2025 results and dividing by the acquisition price. For Hotel Oriental Express Ginza West, NOI yield before the revision is annualized based on actual results from April and December 2025, while NOI yield after the revision is annualized based on the forecast for the same period in the Midterm Financial Report dated August 26, 2026. (*2) As of August 26, 2026, the lease contract for MIMARU Tokyo Shinjuku WEST is scheduled to expire in February 2040; the contractually specified timing for rent revisions is indicated. (*3) For details of lease terms and conditions for each property, please refer to "5. Summary of Lease Contracts" in Appendix 2. Date Hotel Details Rent Structure Lease Type 2027 April MIMARU Tokyo Shinjuku West(*2) Fixed rent revision pursuant to the lease contract Fixed + Variable Fixed-lease June International Garden Hotel Narita Lease terms to be negotiated upon expiration Fixed + Variable Fixed-lease December La’gent Stay Sapporo Odori Lease terms to be negotiated upon expiration Variable Fixed-lease Properties Scheduled for Renewal in 2027
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27 Ⅴ. Financial Conditions
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28 1. Financial Conditions (1) End of FY12/2025 End of June 2026 End of FY12/2026 (Estimated) Total interest-bearing debt JPY269.3Bn JPY334.3Bn JPY340.3Bn Appraisal-based LTV 35.3% 34.5% 34.9% Fixed interest rate ratio 80.1% 78.5% 78.5% Average life of interest-bearing debt(*1) 3.5 years 3.4 years 3.2 years Cost for interest-bearing debt (*2) 1.7% 1.9% 2.0% Free cash(*3) JPY9.6Bn JPY8.8Bn JPY18.9Bn (*1) Average maturity of interest-bearing debt as of the end of each period. The same shall apply hereinafter. (*2) Weighted-average costs for interest-bearing debt (including up-front fee, etc.) as of the end of each period. Rounded off to one decimal place. The same shall apply hereinafter. (*3) The figures represent the balance of cash and deposits, excluding various reserves in trust, etc. (*4) JHR is undertaking renovation work at Hilton Tokyo Odaiba. To fund the renovation costs (total JPY6.4 billion) scheduled for FY12/2026, it plans to take out a new loan of JPY6.0 billion during FY12/2026. When calculating the total asset-based LTV and appraisal-based LTV as of the end of FY12/2026 (estimated), the total interest-bearing debt and total assets are based on the amounts as of August 3, 2026, assuming the planned new borrowings of JPY6.0 billion. Basic Policy Balancing financing costs and dividendsLeveling out maturity ladderIn principle, appraisal-based LTV capped at 40% (JPY MM) (As of August 3, 2026) BOJ Policy Rate Hike Scenarios 0.5% per year 0.25% x 2 (Jun./Dec.) 1.0% per year 0.25% x 4 (Mar./Jun./Sep./Dec.) Impact on DPU (JPY159) (JPY211) Required RevPAR Growth Rate 2.6% 3.4% Changes in LTVMain Financial Indicators Repayment Schedule of Interest-bearing Debt 2027 Interest Rate Simulation Average Life of Debt 3.3 years 3.5 years 3.4 years 3.3 years 3.2 years Costs for Interest- bearing Debt 1.3% 1.7% 1.9% 1.9% 2.0% Assumptions • Tibor and swap costs rise with the BOJ policy rate • Maintain the fixed interest rate ratio as of the end of June 2026 • Assume a six-year refinancing term 4,950 54,225 45,100 39,187 55,489 54,300 28,050 11,400 10,100 10,000 8,000 800 1,800 15,050 54,225 55,100 47,187 56,289 54,300 29,850 10,900 11,400 0 10,000 20,000 30,000 40,000 50,000 60,000 2026 2027 2028 2029 2030 2031 2032 2033 2034 Loans Investment Corporation Bonds 41.1% 46.7% 48.5% 46.9% 47.3% 30.2% 35.3% 34.5% 34.5% 34.9% 20% 30% 40% 50% 60% End of FY12/2024 End of FY12/2025 End of June 2026 As of Aug. 3, 2026 End of FY12/2026 (Estimated) Total Asset-based LTV Appraisal-based LTV (*4)
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29 1. Financial Conditions (2) <Bank Loans/ Interest-bearing Debt> <Long-term/Short-term>(*1) <Fixed/Variable> Status of Credit RatingBreakdown of Interest-bearing Debt (JPY MM) Changes in Appraisal Value (Unrealized Gain) (*1) Long-term represents debt with original maturity over one year, and short-term represents debt with original maturity within one year. (*2) The Net Asset Value (NAV) per unit is calculated by the following formula: (net assets at end of the period + unrealized gains/losses at end of the period − total dividends) ÷ total investment units issued at end of the period. (*3) Represents the forecast as of the end of December 2026. (As of August 3, 2026) Rating and Investment Information, Inc. (R&I) A+ (Stable) One-notch upgrade Changed on May 1, 2026 (JPY MM) Policy for Use of Negative Goodwill and Amount to Be Used In addition to JPY262 million per period (50- year amortization of negative goodwill), the following items are added to dividends: 1. Loss on sales caused by property dispositions 2. Loss on retirement of noncurrent assets 3. Dilution of dividend per unit 4. Inconsistency between tax and accounting treatments (Amortization of fixed-term leasehold of land, amortization of asset retirement obligations, etc.) 5. Suspension of sales and such due to large- scale renovation works with significant impact on revenue Japan Credit Rating Agency, Ltd. (JCR) AA－ (Stable) One-notch upgrade Changed on May 13, 2026 FY12/2026 Planned Use of Negative Goodwill 50-year amortization amount : JPY262MM Loss on retirement of noncurrent assets : JPY54MM Total amount : JPY316MM Estimated balance after the end of December 2026 : JPY6,173MM Net Asset Value (NAV) per unit(*2) 78,661 87,000 89,157 95,334(*3) Ratio of Unrealized Gain 34.1% 39.9% 36.2% 39.2% No. of Properties 47 51 51 52 Lenders Balance Balance Variance(as of the end of December 2025) (as of the end of June 2026) Balance % Balance % Sumitomo Mitsui Banking Corporation 60,833 22.6% 77,733 23.3% 16,900 Mizuho Bank, Ltd. 43,896 16.3% 55,970 16.7% 12,074 Sumitomo Mitsui Trust Bank, Limited 27,535 10.2% 37,535 11.2% 10,000 MUFG Bank, Ltd. 17,300 6.4% 29,100 8.7% 11,800 SBI Shinsei Bank, Ltd. 20,358 7.6% 25,358 7.6% 5,000 Resona Bank, Limited 17,182 6.4% 21,182 6.3% 4,000 Development Bank of Japan Inc. 10,755 4.0% 14,755 4.4% 4,000 Aozora Bank, Ltd. 5,952 2.2% 5,952 1.8% – Fukuoka Bank, Ltd. 4,936 1.8% 4,936 1.5% – The Chiba Bank, Ltd. 3,532 1.3% 4,832 1.4% 1,300 The Tokyo Star Bank, Limited 4,060 1.5% 4,060 1.2% – Daiwa Next Bank, Ltd. 2,000 0.7% 4,000 1.2% 2,000 Kansai Mirai Bank, Limited 2,600 1.0% 3,500 1.0% 900 The Nishi-Nippon City Bank, Ltd. 3,400 1.3% 3,400 1.0% – The Minato Bank, Ltd. 2,400 0.9% 2,400 0.7% – Hiroshima Bank, Ltd. 1,854 0.7% 1,800 0.5% (54) The Nomura Trust and Banking Co., Ltd. 1,500 0.6% 1,500 0.4% – Sompo Japan Insurance Inc. 1,000 0.4% 1,000 0.3% – The Bank of Okinawa, Ltd. 1,000 0.4% 1,000 0.3% – Rakuten Bank, Ltd. 1,000 0.4% 1,000 0.3% – The Shizuoka Bank, Ltd. 788 0.3% 788 0.2% – Bank of The Ryukyus, Limited 500 0.2% 500 0.1% – The Higo Bank, Ltd. 500 0.2% 500 0.1% – The Senshu Ikeda Bank, Ltd. 500 0.2% 500 0.1% – The Hokuriku Bank, Ltd. 300 0.1% 300 0.1% – Total of Bank Loans 235,681 87.5% 303,601 90.8% 67,920 Total of Investment Corporation Bonds 33,700 12.5% 30,700 9.2% (3,000) Total of Interest-bearing Debt 269,381 100.0% 334,301 100.0% 64,920 Long-term 84.9% Long-term (scheduled repayment within one year) 15.1% Loans 90.8% Investment Corporation Bonds 9.2% Fixed Interest Rate 78.5% Variable Interest Rate 21.5% 391,984 450,932 516,511 652,012 133,755 180,107 187,118 255,657 525,740 631,040 703,630 907,670 0 300,000 600,000 900,000 End of FY2023/12 End of FY2024/12 End of FY2025/12 As of Aug. 3, 2026 Book Value Unrealized Gain
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30 Ⅵ. ESG
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31 CASBEE(*3) Certification for Buildings 3 propertiesDBJ Green Building Certification Program(*2) 12 properties 1. ESG Initiatives (*1) GRESB is an annual benchmarking program to evaluate ESG considerations of property companies and real estate funds. The GRESB Real Estate Assessment is distinguished by its comprehensive evaluation of initiatives for sustainability of property companies, REITs and real estate funds, not of individual properties. GRESB rating is a relative evaluation based on comprehensive scores. (*2) DBJ Green Building Certification Program was launched by DBJ for the purpose of supporting the properties which give proper care to environment and society (Green Building). (*3) CASBEE (Comprehensive Assessment System for Built Environment Efficiency) is a system for evaluating and rating the environmental performance of buildings. In addition to environmental considerations such as energy conservation and the use of materials and equipment with low environmental impact, it comprehensively evaluates the quality of buildings, including consideration for interior comfort and landscaping. (*4) BELS (Building-Housing Energy-Efficiency Labeling System) is a display system of energy conservation performance of a building set by the Ministry of Land, Infrastructure, Transport and Tourism. (*5) Properties owned by JHR are managed by hotel lessees, etc. GHG emissions of JHR fall under Scope 3, Category 13, Leased Assets (Downstream). (*6) The GHG emissions (GHG emissions intensity) for FY2017 (Baseline fiscal year, April 2017–March 2018) is 0.135 (t-CO2/㎡). ポートフォリオのESG指標 Green Star Acquired for 8 consecutive years In 2025, acquired in GRESB Rating 3-star No. of Certified Properties 18 properties % of Total Floor Area 60.7% Total Green Finance JPY40.0Bn % of Green Finance 12.0% (as of the end of June 2026) HOTEL AMANEK Shinjuku-Kabukicho. CASBEE for New Construction Rank A (Very Good) Hilton Tokyo Odaiba CASBEE for Buildings (Existing Buildings) Rank B+ (Good) Oriental Hotel Fukuoka Hakata Station CASBEE for Buildings (Existing Buildings) Rank B+ (Good) Kobe Meriken Park Oriental Hotel Hotel Nikko Nara Hilton Tokyo Narita Airport International Garden Hotel Narita Oriental Hotel Tokyo Bay Hilton Tokyo Bay MIMARU Tokyo Shinjuku West Oriental Hotel Okinawa Resort & Spa Hotel Oriental Express Fukuoka Tenjin Hilton Fukuoka Sea Hawk OKINAWA HARBORVIEW HOTEL Southern Beach Hotel & Resort OKINAWA Newly added GRESB(*1) Real Estate Assessment Green Building Certification Green Finance Hotel Nikko Alivila Mercure Okinawa Naha UAN kanazawa BELS(*4) Evaluation 3 properties 30% reduction of GHG emissions per floor area(*5) in our portfolio by 2050 (GHG emissions intensity) compared to FY2017(*6) Environmental Targets
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32 Ⅶ. Market Environment
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33 126 132 125 130 109 112 111 113 80 90 100 110 120 130 140 2019 2020 2021 2022 2023 2024 2025 2025 Jan.－Mar. 2026 Jan.－Mar. Average Spending per Travel Overall CPI FY2019=100 480 (81%) 311 (94%) 313 (99%) 434 (96%) 500 (81%) 495 (75%) 481 (73%) 220 (71%) 214 (72%) 116 20 4 17 118 164 180 91 84 596 332 318 450 617 659 661 311 298 0 100 200 300 400 500 600 700 2019 2020 2021 2022 2023 2024 2025 2025 Jan.–Jun. 2026 Jan.–Jun. 1. Status of Accommodation Demand Total travel spending (JPY Tn) Spending per travel (JPY) 17.1 21.77.7 6.9 13.7 17.7 20.3 72,41269,36263,25359,04249,27048,36155,054 (Guest night in MM) (*1) No. of inbound overnight guests, No. of Japanese overnight guests and the total number of overnight guests are rounded off to the nearest million. The figures from 2019 to 2025 are final, those for January to May 2026 are second preliminary figures, and those for June 2026 are first preliminary figures. (*2) The figures from 2019 to 2025 are final, those for January 2026 to May 2026 are second preliminary figures. Source: "Overnight Travel Statistics Survey" by Japan Tourism Agency No. of Inbound Overnight GuestsNo. of Japanese Overnight Guests (% of Japanese Overnight Guests) Travel spending growth outpaced inflation, offsetting lower domestic overnight stays Source: Japan Tourism Agency, "Travel and Tourism Consumption Trend Survey," Statistics Bureau of Japan, "Consumer Price Index (CPI)" 4.84.5 71,75368,732 +3.2% +4.4% +4.4% +1.4% Changes in Number of Overnight Guests(*1) Average Spending per Domestic Overnight Stay(*2) vs CPI
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34 7.1 6.4 3.4 5.5 5.9 10.7 13.8 13.1 Total China South Korea Taiwan Hong Kong U.S. Europe Australia 7.0 8.3 4.2 4.6 0.9 1.1 0.6 0.6 1.7 2.2 1.0 1.1 2.7 3.3 1.7 1.8 2.7 2.5 1.3 1.3 6.0 6.8 3.3 4.0 8.8 9.5 4.8 5.7 7.0 9.1 4.7 2.1 36.9 42.7 21.5 21.1 60.0 0.0 10.0 20.0 30.0 40.0 60.0 2024 2025 2025 Jan.–Jun. 2026 Jan.–Jun. 2026 Estimate (vs 2025) 2027 Estimate (vs 2025) 2030 Estimate (vs 2025) China 4.0 (-56.4%) 4.0 (-56.4%) 4.0 (-56.4%) Outside China 36.9 (+10.0%) 40.6 (+21.0%) 54.1 (+61.1%) Total 40.9 (-4.1%) 44.6 (+4.5%) 58.1 (+36.0%) Number of Inbound Visitors(*1) Inbound arrivals from China declined in 1H 2026, while arrivals from other markets grew 13.3% YoY Even without a recovery in Chinese demand, inbound arrivals are expected to resume growth in 2027, led by non-China markets (*1) The number of inbound visitors is rounded off to the nearest thousand. Figures 2024 are verified statistics. Figures for January 2025 to April 2026 are provisional. Figures for May 2026 and June 2025 are estimates. (*2) The average length of stay by inbound visitors by country/region (2025) is based on finalized 2025 data. "Accommodation spending" refers to the total accommodation expenditure of inbounds during their stay in Japan. Average Length of Stay by Country/Region (2025)(*2) (days) Inbound Arrivals Simulation (Assuming no recovery in Chinese demand) (MM people) Key Assumptions China: Assumed to remain at the 2026 level (-56.4% YoY) Outside China markets: Based on 1H 2026 actual growth (+13.3% YoY), assuming annual growth of 10% thereafter +15.8% (MM people) Jan.–Jun. 2026 YoY Change (%) China (56.4%) Outside China +13.3% China South Korea Taiwan Hong Kong U.S. Europe Australia Others South Korea +18.6% Taiwan +20.9% Hong Kong +2.2% U.S. +7.1% Europe +7.6% Australia +4.6% Source: Prepared by JHRA based on the data from Japan National Tourism Organization (JNTO), "Inbound Visitors Statistics" and from Prime Minister's Office, "Vision for a Tourism-Oriented Country to Support the Future of Japan". Source: The data from MLIT, "Inbound Consumption Trends Survey" 2. Status of Inbound Visitors Government's Target for 2030
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35 11,298 59,079 49,115 30,030 27,196 20,354 17,069 14,728 18,856 26,555 11,519 0 20,000 40,000 60,000 80,000 3. Status of New Supply of Hotels Limited new openings are expected, with supply levels projected to remain below past averages <Tokyo> <Osaka> <Japan> (No. of rooms) (No. of rooms) (No. of rooms) Supply of Rooms in Hotels/Ryokans in Japan (%: change from the previous year) 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Ratio of New Supply +6.5% +6.8% +1.7% +2.7% +1.8% +1.0% +0.9% +0.8% +1.5% +0.9% (%: change from the previous year) 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Ratio of New Supply +11.6% +6.0% +3.1% +2.0% +4.3% +3.8% +1.5% +1.0% +0.4% +0.2% (%: change from the previous year) 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Ratio of New Supply +3.6% +2.9% +1.7% +1.5% +1.1% +0.9% +0.8% +1.0% +1.4% +0.6% As of the end of July 2026 <Fukuoka> <Okinawa> <Hokkaido> (No. of rooms) (No. of rooms) (No. of rooms) (%: change from the previous year) 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Ratio of New Supply +4.6% +4.6% +4.7% +1.2% +1.2% +0.7% +1.0% +0.9% +0.7% +0.2% (%: change from the previous year) 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Ratio of New Supply +3.6% +4.6% +3.0% +4.0% +1.4% +0.6% +0.7% +2.2% +4.0% +1.2% (%: change from the previous year) 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Ratio of New Supply +3.4% +1.9% +1.4% +1.3% +0.9% +0.9% +1.3% +1.5% +3.0% +0.8% 758 11,105 12,483 3,293 5,430 3,720 1,995 1,931 1,772 3,230 2,006 0 5,000 10,000 15,000 297 3,812 2,263 1,694 1,603 1,092 1,159 1,671 1,844 3,833 1,045 0 1,000 2,000 3,000 4,000 5,000 354 2,527 2,653 2,820 754 748 444 656 561 455 150 0 1,000 2,000 3,000 4,000 5,000 1,571 2,087 1,419 1,941 727 308 364 1,152 2,141 648 0 1,000 2,000 3,000 4,000 5,000 668 10,721 6,205 3,369 2,212 4,920 4,621 1,881 1,261 522 297 0 5,000 10,000 15,000 Opened Scheduled to open Source: Estimated by the Asset Management Company using data from "Public Health Administration Report" by Ministry of Health, Labour and Welfare (MHLW), a weekly hotel & restaurant magazine (HOTERES) and Nikkei Telecom. (*) Ratio of new supply is the ratio of new rooms to be supplied in a year to the stock of rooms (Hotels/Ryokans) at the beginning of the year. With regard to the above data, please note that in case the number of rooms are stated as "to be determined" by hotels, the asset management company has used 180, the average number of new supply of hotel rooms, for calculation.
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36 FAQ
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37 FAQ (1) External Growth Q1. What is JHR's policy on asset acquisition? A. JHR does not limit investments to specific regions or large- scale assets and will pursue acquisitions that enhance portfolio quality based on leisure demand capture, competitiveness and growth potential. Q2. What is JHR's policy on asset disposition? A. Dispositions are primarily intended for capital recycling; sales solely for realizing gains are not contemplated. Assets are selected based on their future growth potential. Asset Replacement Q1. What enabled the sale of The Beach Tower Okinawa at nearly 3x its appraisal value? A. The sale price reflected not only current rent levels, but also future rent growth potential, Okinawa's growth outlook and the asset's scarcity. Q2. How will the gain on sale from The Beach Tower Okinawa be utilized? A. Of the approx. JPY24.0 billion gain on sale, a portion was used to fund the acquisition of Candeo Hotels Osaka Namba, and approx. JPY6.0 billion will be distributed to unitholders. The remainder will be retained for future growth investments, including acquisitions and major renovations. Q3. Why did JHR acquire Candeo Hotels Osaka Namba despite its fixed-rent lease structure? A. In addition to stable cash flows from fixed rent, the asset offers a higher post-depreciation NOI than The Beach Tower Okinawa and upside from future demand growth, including the Osaka IR development. The acquisition enhances both portfolio stability and growth potential as part of JHR's capital recycling strategy. Highlights Q1. Can the hotel market continue to grow despite the sharp decline in Chinese inbound demand? A. While Chinese inbound demand has softened, demand from other countries continues to grow. Combined with limited hotel supply in Japan and growing global travel demand, we believe supply-demand conditions will tighten further. The hotel market is expected to sustain long-term growth even without a recovery in Chinese demand. Q2. Japanese domestic overnight stays are declining YoY. How do you view the impact on the hotel revenue? A. Although domestic travel volume is gradually declining due in part to demographic trends, spending per traveler and room rates continue to rise. This shift from volume to rate growth is supporting hotel revenue. Q3. Is the forecast for 2H 2026 conservative? A. We believe the forecast is reasonable. While strong inbound demand outside China is likely to remain strong, downside risks such as natural disasters are also incorporated. Q4. Why is the full-year RevPAR forecast lower than the previous forecast? A. The impact of weaker Chinese demand has been particularly pronounced in Osaka. We therefore revised our 2H forecast based on the assumption of little to no recovery in Chinese demand.
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38 FAQ (2) Internal Growth Q1. Which markets are expected to be strong or weak in 2026? A. Okinawa and Kyushu are expected to post RevPAR growth of 9-10% YoY. Osaka is projected to decline 12.5% YoY due to weaker Chinese demand and the post-Expo impact, but remain 6% above 2024 levels. Q2. What is the inbound revenue mix in the portfolio? A. The inbound revenue ratio for the 29 Hotels with Variable Rent, etc. was 46% in 2025, and is expected to be 47% in the full year 2026. Q3. How much impact from weaker Chinese demand is assumed? A. Chinese demand is forecast to decline 60% YoY, while other inbound markets are anticipated to grow 16%. Total inbound and rooms revenue are projected to increase 5% and 4.5%, respectively. Q4. What is the outlook for the F&B department in 2026? A. F&B revenue for the 29 Hotels with Variable Rent, etc. is expected to increase 3.7%. Banquet and restaurant revenue are projected to grow approx. 3% and 9%, respectively, while wedding revenue is expected to decline, with profitability remaining broadly flat. Q5. What is the impact of rising labor and utility costs? A. Labor costs are expected to remain stable through workforce optimization, while utility costs are expected to increase by approx. 4% YoY. Cost increases are expected to be offset by revenue growth. Q6. CAPEX exceeds depreciation. Will this trend continue, and how will it be funded? A. While the basic policy is to keep CAPEX within depreciation, higher CAPEX may be undertaken where sufficient investment returns are expected. Funding options include cash, borrowings and asset sales, as appropriate. Internal Growth Q7. What is the expected return on strategic CAPEX, and how are construction cost increases managed? A. Strategic CAPEX continues to be assessed based on a 7-year payback on a post-depreciation NOI basis and an ROI of around 15%. With an in-house engineering team,we believe construction costs can be effectively managed despite inflationary environment. Q8. What is the DPU impact of rent revisions? A. Based on 2025 hotel performance, the DPU impact from rent revisions at five properties in 2026 is estimated at approx. JPY140 on an annualized basis. Finance Q1. Has the leverage policy changed? A. No change. We maintain an appraisal-based LTV ceiling of 40% and aim to expand financial flexibility through active asset management. Q2. What is the borrowing capacity at a 40% appraisal- based LTV? A. Borrowing capacity is approx. JPY80 billion. Q3. How much impact from interest rate increases is assumed? A. Assuming two 25bps rate hikes this year, the all-in cost of interest-bearing debt is projected to be around 2.0% by the end of December 2026. Market Q1. Why has JHR's RevPAR increased despite a YoY decline in domestic overnight stays in Japan in 2026? A. JHR's portfolio has strong exposure to domestic and inbound leisure demand, along with potential ADR upside. Together with active asset management, this has supported RevPAR growth.
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39 Appendix 1 JHR's Policies and Strategy
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40 1. JHR's Investment Targets Strong ability in acquiring properties Highly recognized as Japan's largest J-REIT specializing in hotels High presence and credibility in the property market by continuously acquiring properties Capability to propose various acquisition schemes and to execute acquisitions High capability in achieving internal growth Management approach through active asset management strategies that achieves a good balance between stability and upside potential Increase hotel revenue through collaboration with high- quality operators Attract inbound demand through enhanced international brand portfolio Strengthen and maintain competitiveness by investing in appropriate capital expenditures Stable financing capability Secure sound and stable finance Diversify financing methods Aim to increase dividends for mid to long term Strong ability in acquiring properties Stable financing capability High capability in achieving internal growth
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41 2. Simultaneous Pursuit of Stability and Upside Potential JHR pursues both stability and upside potential by steadily implementing growth strategies Fixed rent 45.2% Variable rent, etc.(*1) 54.8% Ensure Stable Revenue Fixed rent structure Pursue Upside Management contract structure Variable rent structure Revenue-sharing structure Appropriate monitoring of hotel operation Capital expenditures to maintain competitiveness and asset value Maintain and improve rent-paying capacity of tenants, etc. Increase in rental income, etc. through improvement in hotels' performance Active Asset Management Strategies Change in rent structures and rebranding Strategic capital expenditures, etc. Proportion of Rental Income Proportion of Rent Structures (as of August 3, 2026) Fixed rent only Variable rent, etc.(*2) 7 properties 45 properties (*1) Variable rent, Rent from revenue-sharing rent and Income from management contracts. (*2) Fixed rent + variable rent structure, Fixed rent + revenue-sharing rent structure, Variable rent structure and management contract structure. (*3) The proportion of rental income is based on the Midterm Financial Report for FY12/2026 dated August 26, 2026. (FY12/2026 forecast)
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42 3. External Growth Strategy Trend of the Hotel Investment Market The hotel market in Japan continues to grow, driven by robust domestic accommodation demand and expanding inbound demand. In the hotel transaction market, both foreign funds and domestic investors, including J-REITs, continue to actively pursue hotel investment opportunities. Supported by expectations for further growth in the hotel sector and proactive lending stance of financial institutions toward hotel assets, hotel transaction activity is expected to remain strong. For acquisition of hotels, it is important to differentiate each hotel since the competitiveness of hotels is becoming more evident in accordance with the hotel specifications, locations and the abilities of hotel operators. External Environment Acquire highly competitive hotel real estate, etc. in areas that have potential to attract "demand by both domestic and inbound leisure customers" in the medium to long term Improve profitability, stability and quality of the overall portfolio Basic Policies Emphasize the superiority of buildings and facilities (infrastructure), operations (services), locations of hotel real estate, etc. • The prime investment targets are "full-service hotels" and "resort hotels" that have high barriers to entry due to operation and management know-how, capital outlay and locations • For "limited-service hotels," the creditworthiness of the hotel lessee, the age of the building, location, guest room composition and profitability are important • For limited-service hotels that specialize in selling single rooms, we will consider acquiring them individually, taking into account the specifications and upside potential of the hotel • In particular, we will actively consider purchasing hotels that can be expected to grow internally through an active asset management strategy and hotels that can be expected to generate synergies with existing properties Strategic investment areas • Hokkaido area, Tokyo and Bay area(*1), Osaka/Kyoto area(*2), Fukuoka area and Okinawa area Investigate and plan the internal growth strategy in property acquisition • At the time of contract renewal, etc., investigate appropriate rent levels and structures as well as the potential for cost savings and building and facility improvement • Promote internal growth by collaborating with lessees and operators, especially when the hotel has variable rent structure, etc. Respond to various investment opportunities by utilizing HMJ's efficient hotel operation platform, know-how for operational improvement, etc. Key Measures (*1) Bay area includes the coastal area of Tokyo Bay in Kanagawa and Chiba prefectures. The same shall apply hereinafter. (*2) Osaka/Kyoto Area refers to Osaka and Kyoto prefectures. The same shall apply hereinafter.
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43 4. Internal Growth Strategy Pursue both stability and upside potential by steadily implementing active asset management strategies Basic Policies Planning and execution of the active asset management in order to realize pursuit in upside revenue • Make strategic CAPEX which will improve profitability and strengthen competitiveness mainly at hotels with high growth potential • Raise rent and change to rent structures that can achieve upside revenue • Reduction of management contract fee of properties under management contract • Increase hotel revenue through collaboration with high-quality operators • Attract inbound demand through rebranding to international brands, etc. • Make proactive proposals to build effective hotel operating structures which aim to maximize GOP, from the perspective of both hotel revenue and expenses • Stimulate and capture domestic demand by creating products utilizing the characteristics of each hotel in line with the current market environment Planning and execution of strategic CAPEX which secure steady revenue, and monitoring of lessees • Analyze the creditworthiness of hotel lessees, understand income and expenditures of hotels, closely observe and improve rent-paying capacity • Maintain and improve rent-paying capacity of tenants, etc. through capital expenditures, which lead to maintain and improve competitiveness and asset value Key Measures Hotel Market Environment With increasing visitors from Asia (outside China), Europe and the U.S., inbound demand is expected to remain above pre-pandemic levels, and accommodation demand is anticipated to continue to be strong. The continued growth in inbound demand will support market expansion, with increased flight routes and eased visa requirements expected to further drive inbound tourism to Japan. While the market continues to experience strong growth, upward pressure on costs and expenses has occurred. We believe it is key to increase unit prices by appropriately passing on higher costs, conducting renovation, providing added value, implementing appropriate marketing strategies, etc. External Environment
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44 5. Financial Strategy Trend of Financing Environment and Interest Rates J-REIT public offerings in 1H 2026 increased year-on-year in both number and total amount. The TSE REIT index declined by around 10% since the beginning of the year amid rising interest rate concerns. Supported by strong inbound demand and continued growth expectations in hotel performance, financial institutions maintain a constructive financing stance. Certain caution remains required for further increases in interest rates due to the Bank of Japan's policy reviews and overseas factors. Ensure healthy and stable finance Strengthen lender formation and relationships with financial institutions Diversify financing methods Basic Policies Improve financial stability through leveling out maturity ladder and fixing interest rate Pursue longer loan terms with cost consideration amid rising interest rates In principle, maintain appraisal-based LTV level at a maximum of 40% Maintain good relationship with financial institutions Diversify financing methods and promote green finance, including public offerings and issuance of investment corporation bonds Key Measures External Environment
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45 6. Internal Growth through Active Asset Management Realize upside potential through Active Asset ManagementHotels Improve GOP Maximize DPU Improve NOI Increase in Hotel Sales Increase sales by improvement of hotel operation, etc. 1 • Aim to increase hotel sales through improvement of hotel operation by measures including revenue management, changes in hotel operator, rebranding, renovation and upgrades • Stimulate and acquire leisure demand by enhancing the unique attractiveness of each hotel and highly competitive products <Examples> • Initiatives by the HMJ Group to improve sales • Rebranding and Renovation Reduction in Operating Costs of Hotels • Review the various costs and improve the revenue structure • Aim to maximize GOP through efficient management Review of costs by Restructuring 2 <Examples> • Restructuring by the HMJ Group REIT Increase in Real Estate Operating Revenue Reduction in Real Estate Operating Costs • Aim to increase the rent that JHR receives by raising the rent burden ratio at the time of rebranding and other measures Reduction of costs for property management costs, trust fees, management contract fees, ground rent, etc. Revision in rent structure, etc. <Examples> • Changing rent structure through Rebranding • Introducing variable rent at the time of lease contract revision 3 Active Asset Management
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46 Appendix 2 Information of Properties
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47 1. Portfolio Map 16 15 5 29 18 2 Tokyo 23 wards Fukuoka Area Tokyo & Bay Area Oriental Hotel Tokyo Bay Oriental Hotel Hiroshima Hakone Setsugetsukadormy inn Kumamoto Washington Hotel Plaza Nara Hilton Tokyo Bay Chisun Hotel Kamata the b hachioji Hotel Francs Mercure Yokosuka ACTIVE-INTER CITY HIROSHIMA (Sheraton Grand Hiroshima Hotel) Chisun Inn Keikyu Kamata Hilton Nagoya Hilton Tokyo Narita Airport International Garden Hotel Narita Hotel Nikko Nara 7 6 24 27 26 35 36 10 34 37 1 Kobe Meriken Park Oriental Hotel dormy inn EXPRESS Asakusa Smile Hotel Nihombashi Mitsukoshimae 11 30 CANDEO HOTELS Ueno Koen Washington R&B Hotel Ueno-hirokoji Comfort Hotel Tokyo Higashi Nihombashi Hilton Tokyo Odaiba 13 12 9 39 MIMARU Tokyo Shinjuku West Toyoko Inn Hakata-guchi Ekimae the b hakata Oriental Hotel Fukuoka Hakata Station Hotel Oriental Express Fukuoka Tenjin 25 14 31 33 Hotel Oriental Express Fukuoka Nakasukawabata 44 Hokkaido Area ibis Styles Sapporo20 Mercure Sapporo21 La’gent Stay Sapporo Odori42 Portfolio consisted of competitive hotels in areas with strong leisure accommodation demand Selectively invest in locations with high growth potential of leisure demand such as Strategic Investment Areas Namba Oriental Hotel Oriental Hotel Universal City Holiday Inn Osaka Namba Hotel Oriental Express Osaka Shinsaibashi 3 17 32 38 UAN kanazawa ibis Styles Kyoto Station 19 Oriental Hotel Kyoto Rokujo 43 Osaka/Kyoto Area (as of August 3, 2026) Hotel JAL City Kannai Yokohama45 HOTEL AMANEK Shinjuku-Kabukicho. Hotel Oriental Express Ginza West 41 47 46 Okinawa Area 28 Oriental Hotel Okinawa Resort & Spa 4 Hotel Nikko Alivila 22 Mercure Okinawa Naha OKINAWA HARBORVIEW HOTEL48 49 Southern Beach Hotel & Resort OKINAWA Hilton Fukuoka Sea Hawk 50 Limited-service hotel Full-service hotel Resort hotel Strategic Investment Areas Existing Properties Property Acquired in 2026 Total Assets (Acquisition Price) JPY648.1Bn Total Assets (Appraisal Value) JPY907.6Bn No. of Hotels 52 Hotels No. of Guest Rooms 15,058 Rooms HYATT REGENCY TOKYO 51 the b ikebukuro 23 the b suidobashi 8 Candeo Hotels Osaka Namba 52 40
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48 2. List of Portfolio Accor Group 19 20 22 27 21 Ishin Group 8 23 24 25 Acquisition in 2026 42 46 47 52 6 7 9 41 16 18 26 40 34 30 39 Acquisition in 2026 51 48 HMJ Group The 29 Hotels with Variable Rent, etc. ibis Styles Kyoto Station ibis Styles Sapporo Mercure Sapporo Mercure Yokosuka Mercure Okinawa Naha the b suidobashi the b hakata the b ikebukuro the b hachioji HOTEL AMANEK Shinjuku-Kabukicho. MIMARU Tokyo Shinjuku West Candeo Hotels Osaka Namba La’gent Stay Sapporo Odori 35 37 36 38 5 2 4 17 1 3 28 31 32 33 29 50 44 43 45 49 Hotel Nikko AlivilaKobe Meriken Park Oriental Hotel Oriental Hotel Tokyo Bay Namba Oriental Hotel Oriental Hotel Hiroshima Oriental Hotel Universal City Oriental Hotel Okinawa Resort & Spa ACTIVE-INTER CITY HIROSHIMA (Sheraton Grand Hiroshima Hotel) Holiday Inn Osaka Namba Oriental Hotel Fukuoka Hakata Station Hotel Oriental Express Fukuoka Tenjin Hilton Tokyo Narita Airport Hotel Nikko NaraInternational Garden Hotel Narita Hotel Oriental Express Osaka Shinsaibashi Hotel Oriental Express Fukuoka Nakasukawabata Oriental Hotel Kyoto Rokujo Hotel JAL City Kannai Yokohama Southern Beach Hotel ＆ Resort OKINAWA Hilton Fukuoka Sea Hawk Large-scale Renovation Ongoing (as of August 3, 2026)Limited-service hotel Full-service hotel Resort hotel HYATT REGENCY TOKYO OKINAWA HARBORVIEW HOTELHilton Tokyo Odaiba Hakone Setsugetsuka dormy inn Kumamoto dormy inn EXPRESS Asakusa Chisun Inn Keikyu Kamata 10 11 12 14 13 15 Washington Hotel Plaza Nara Washington R&B Hotel Ueno-hirokoji Smile Hotel Nihombashi Mitsukoshimae Toyoko Inn Hakata-guchi Ekimae Comfort Hotel Tokyo Higashi Nihombashi Chisun Hotel Kamata Hotel Oriental Express Ginza West UAN kanazawaHilton Tokyo Bay Hotel Francs Hilton NagoyaCANDEO HOTELS Ueno Koen
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49 (FY12/2026 Forecast) 3. Rent Structure Aim to secure stability through fixed rents and increase variable rents, etc. through active asset management strategies Rent Structure(*1) Fixed rent Fixed rent + Revenue-sharing rent Fixed rent + Variable rent Variable rent Management contract Total Type of Contract Lease contract Lease contract Lease contract Lease contract Management contract Type of Rent Fixed ○ ○ ○ – – – Variable – A certain percentage of revenue exceeding the threshold A certain percentage of hotel GOP A certain percentage of hotel revenue or hotel GOP Hotel GOP – Real Estate Operating Revenue(*2) (%) JPY1,618MM (3.2%) JPY4,186MM (8.4%) JPY38,756MM (77.6%) JPY2,853MM (5.7%) JPY2,532MM (5.1%) JPY49,949MM (100.0%) (breakdown) Fixed Rent(*3) (%) JPY1,618MM (3.2%) JPY2,741MM (5.5%) JPY17,918MM (35.9%) JPY127MM (0.3%) JPY169MM (0.3%) JPY22,574MM (45.2%) Variable Rent (%) – JPY1,445MM (2.9%) JPY20,838MM (41.7%) JPY2,726MM (5.5%) JPY2,363MM (4.7%) JPY27,374MM (54.8%) CAPEX Paid by JHR(*4) 1. Renewal of building and facilities 1. Renewal of building and facilities (3. Strategic investment) 1. Renewal of building and facilities 2. Fixtures and equipment 3. Strategic investment 1. Renewal of building and facilities 2. Fixtures and equipment 3. Strategic investment 1. Renewal of building and facilities 2. Fixtures and equipment 3. Strategic investment – No. of Properties 7 4 32 5 4 52 Acquisition Price (%) JPY31,516MM (4.9%) JPY33,954MM (5.2%) JPY530,979MM (81.9%) JPY29,255MM (4.5%) JPY22,397MM (3.5%) JPY648,101MM (100.0%) Hotels Hakone Setsugetsuka(*5) dormy inn EXPRESS Asakusa Washington Hotel Plaza Nara Washington R&B Hotel Ueno-hirokoji Toyoko Inn Hakata-guchi Ekimae CANDEO HOTELS Ueno Koen Candeo Hotels Osaka Namba Hilton Tokyo Bay Smile Hotel Nihombashi Mitsukoshimae Comfort Hotel Tokyo Higashi Nihombashi UAN kanazawa HMJ Group (24 Hotels)(*6) Ishin Group (4 Hotels) dormy inn Kumamoto Hotel Francs MIMARU Tokyo Shinjuku West HOTEL AMANEK Shinjuku-Kabukicho. Hilton Nagoya Mercure Yokosuka Chisun Hotel Kamata Chisun Inn Keikyu Kamata La’gent Stay Sapporo Odori ibis Styles Kyoto Station ibis Styles Sapporo Mercure Sapporo Mercure Okinawa Naha – (*1) Rent structure is classified based on the type of rent under the lease contract and other contracts of hotels owned by JHR as of August 26, 2026. (*2) Based on the revenue forecast for FY12/2026, which was announced in the Midterm Financial Report dated August 26, 2026. This includes the real estate operating revenue from The Beach Tower Okinawa, which was sold in July 2026. (*3) The fixed amount of real estate operating revenue does not include other income. (*4) The table lists a general scope of CAPEX paid by JHR and detail is individually stipulated in the lease contract of each hotel. (*5) The rent structure for Hakone Setsugetsuka is as follows: until October 31, 2026, fixed rent only. On and after November 1, 2026, a combination of fixed and variable rent will apply. (*6) The rent structure for OKINAWA HARBORVIEW HOTEL, one of the HMJ group, is as follows: until July 31, 2026, fixed rent only. On and after August 1, 2026, a combination of fixed and variable rent has been applied.
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50 No. Property Name Hotel Type (*1) Grade (*2) No. of Guest Rooms Location Age (*3) Acquisition Price (JPY MM) (*4) Book Value (JPY MM) (*5) Appraisal Value Investment Ratio (*6) Revenue from Real Estate Operation (JPY1,000) (*7) NOI (JPY1,000) (*7) P/L from Real Estate Operation (JPY1,000) (*7) NOI Yield (forecast) (*8) 26th Period (as of December 31, 2025) 27th Period (as of June 30, 2026) Appraisal Value (JPY MM) CAP Rate Appraisal Value (JPY MM) CAP Rate 1 Kobe Meriken Park Oriental Hotel Full-service Upper-middle 323 Hyogo 31.0 10,900 9,600 14,600 4.8% 15,800 4.8% 1.7% 533,325 410,346 245,465 9.7% 2 Oriental Hotel Tokyo Bay Full-service Upper-middle 511 Chiba 31.2 19,900 18,103 35,100 4.3% 40,900 4.3% 3.1% 1,173,613 1,105,884 860,217 12.0% 3 Namba Oriental Hotel Limited-service Mid-price 267 Osaka 30.3 15,000 15,376 33,700 4.1% 33,700 4.1% 2.3% 725,386 664,971 575,823 9.4% 4 Hotel Nikko Alivila Resort Luxury 397 Okinawa 32.2 18,900 17,921 29,200 4.7% 29,800 4.7% 2.9% 520,689 438,626 300,146 9.3% 5 Oriental Hotel Hiroshima Full-service Upper-middle 227 Hiroshima 32.8 4,100 3,966 4,290 4.9% 4,290 4.9% 0.6% 132,735 109,387 69,474 7.2% 6 Hakone Setsugetsuka Resort Mid-price 158 Kanagawa 19.7 4,070 3,383 5,630 4.6% 9,110 5.2% 0.6% 147,469 134,741 84,815 6.6% 7 dormy inn Kumamoto Limited-service Mid-price 291 Kumamoto 18.4 2,334 2,102 5,570 5.4% 6,320 5.4% 0.4% 114,713 102,673 74,914 11.9% 8 the b suidobashi Limited-service Mid-price 99 Tokyo 39.8 1,120 1,142 2,530 4.0% 2,890 4.0% 0.2% 90,355 84,659 71,123 15.8% 9 dormy inn EXPRESS Asakusa Limited-service Economy 75 Tokyo 29.3 999 916 1,300 3.8% 1,290 3.8% 0.2% 32,537 27,507 20,669 5.5% 10 Washington Hotel Plaza Nara Limited-service Mid-price 203 Nara 26.3 2,050 1,694 2,450 4.8% 2,420 4.8% 0.3% 75,000 66,000 49,000 6.5% 11 Washington R&B Hotel Ueno-hirokoji Limited-service Economy 176 Tokyo 24.2 1,720 1,776 1,880 3.9% 1,800 3.9% 0.3% 48,645 40,304 30,830 4.7% 12 Comfort Hotel Tokyo Higashi Nihombashi Limited-service Economy 259 Tokyo 18.4 3,746 3,435 5,910 4.1% 6,670 4.1% 0.6% 261,395 244,453 222,347 9.7% 13 Smile Hotel Nihombashi Mitsukoshimae Limited-service Economy 164 Tokyo 29.3 2,108 1,994 3,170 3.9% 3,220 3.9% 0.3% 120,668 111,839 100,447 8.1% 14 Toyoko Inn Hakata-guchi Ekimae Limited-service Economy 256 Fukuoka 24.8 1,652 1,302 2,780 4.4% 2,730 4.4% 0.3% 70,519 62,366 53,451 7.5% 15 Chisun Hotel Kamata Limited-service Economy 105 Tokyo 34.4 1,512 1,457 2,130 4.6% 2,360 4.6% 0.2% 96,349 88,812 73,321 11.1% 16 Chisun Inn Keikyu Kamata Limited-service Economy 70 Tokyo 23.2 823 763 1,460 4.4% 1,600 4.4% 0.1% 52,032 48,276 42,281 11.2% 17 Oriental Hotel Universal City Resort Upper-middle 330 Osaka 25.0 6,753 7,160 22,300 4.7% 25,600 4.7% 1.0% 565,547 534,278 458,604 20.5% 18 Hilton Tokyo Bay Resort Luxury 828 Chiba 38.0 26,050 26,158 42,800 4.1% 47,900 4.1% 4.0% 990,009 847,128 732,338 9.0% 19 ibis Styles Kyoto Station Limited-service Mid-price 215 Kyoto 17.2 6,600 6,504 10,000 4.2% 10,200 4.2% 1.0% 234,486 204,165 188,552 6.7% 20 ibis Styles Sapporo Limited-service Mid-price 278 Hokkaido 15.9 6,797 6,173 11,300 4.7% 11,300 4.7% 1.0% 284,387 226,085 185,057 8.2% 21 Mercure Sapporo Limited-service Mid-price 285 Hokkaido 17.2 6,000 5,511 12,400 4.6% 13,400 4.6% 0.9% 459,097 344,284 296,537 13.2% 22 Mercure Okinawa Naha Limited-service Mid-price 260 Okinawa 16.9 3,000 2,696 7,440 4.6% 7,440 4.6% 0.5% 239,498 194,118 159,938 13.4% 23 the b ikebukuro Limited-service Mid-price 175 Tokyo 44.0 6,520 6,653 7,990 4.0% 8,600 4.0% 1.0% 217,936 202,760 183,479 6.5% 24 the b hachioji Limited-service Mid-price 196 Tokyo 39.9 2,610 2,644 2,740 5.0% 2,740 5.0% 0.4% 113,472 101,136 83,168 7.7% 25 the b hakata Limited-service Mid-price 175 Fukuoka 28.8 2,300 2,306 6,180 4.2% 6,180 4.2% 0.4% 189,222 180,899 169,039 16.6% 26 Hotel Francs Full-service Mid-price 222 Chiba 34.9 3,105 3,258 6,690 4.7% 6,690 4.7% 0.5% 209,068 178,010 144,448 12.2% 27 Mercure Yokosuka Full-service Upper-middle 160 Kanagawa 32.7 1,650 1,765 3,640 4.6% 3,710 4.6% 0.3% 250,387 194,159 169,575 21.9% 28 Oriental Hotel Okinawa Resort & Spa Resort Upper-middle 361 Okinawa 21.4 14,950 16,416 19,700 4.8% 21,500 4.8% 2.3% 588,651 541,645 288,409 13.5% 29 ACTIVE-INTER CITY HIROSHIMA (Sheraton Grand Hiroshima Hotel) Full-service Luxury 238 Hiroshima 15.8 17,320 16,774 20,600 4.5% 23,100 4.5% 2.7% 983,514 733,962 606,610 8.7% 30 CANDEO HOTELS Ueno Koen Limited-service Mid-price 268 Tokyo 16.5 6,705 6,488 7,420 3.9% 7,270 3.9% 1.0% 174,985 160,980 136,725 4.8% 4. Property List (1/2) (as of the end of June 2026)
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51 4. Property List (2/2) No. Property Name Hotel Type (*1) Grade (*2) No. of Guest Rooms Location Age (*3) Acquisition Price (JPY MM) (*4) Book Value (JPY MM) (*5) Appraisal Value Investment Ratio (*6) Revenue from Real Estate Operation (JPY1,000) (*7) NOI (JPY1,000) (*7) P/L from Real Estate Operation (JPY1,000) (*7) NOI Yield (forecast) (*8) 26th Period (as of December 31, 2025) 27th Period (as of June 30, 2026) Appraisal Value (JPY MM) CAP Rate Appraisal Value (JPY MM) CAP Rate 31 Oriental Hotel Fukuoka Hakata Station Full-service Upper-middle 221 Fukuoka 41.0 7,197 7,687 16,000 4.6% 18,300 4.6% 1.1% 1,108,481 985,102 800,014 28.2% 32 Holiday Inn Osaka Namba Limited-service Mid-price 314 Osaka 17.9 27,000 26,374 27,300 4.3% 27,300 4.3% 4.2% 588,830 562,774 496,067 4.4% 33 Hotel Oriental Express Fukuoka Tenjin Limited-service Mid-price 263 Fukuoka 27.2 5,248 5,697 7,820 4.6% 8,600 4.6% 0.8% 547,991 484,262 450,210 18.9% 34 Hilton Nagoya Full-service Luxury 460 Aichi 37.3 15,250 15,327 15,500 4.1% 15,800 4.1% 2.4% 796,660 460,293 360,591 6.5% 35 Hilton Tokyo Narita Airport Full-service Upper-middle 548 Chiba 32.9 13,175 13,097 13,200 4.4% 13,200 4.4% 2.0% 472,667 434,838 307,671 6.2% 36 International Garden Hotel Narita Full-service Mid-price 463 Chiba 30.1 9,125 8,708 9,650 4.7% 9,650 4.7% 1.4% 277,859 256,076 172,959 5.7% 37 Hotel Nikko Nara Full-service Upper-middle 330 Nara 28.3 10,373 9,960 10,000 4.7% 10,200 4.7% 1.6% 308,229 283,736 198,754 6.0% 38 Hotel Oriental Express Osaka Shinsaibashi Limited-service Mid-price 124 Osaka 8.4 2,738 2,751 2,900 4.5% 3,000 4.5% 0.4% 71,895 64,126 56,009 4.9% 39 Hilton Tokyo Odaiba Full-service Upper-middle 453 Tokyo 30.5 62,400 64,635 72,700 3.7% 74,900 3.7% 9.6% 799,800 618,422 439,476 2.0% 40 UAN kanazawa Limited-service Upper-middle 47 Ishikawa 8.8 2,050 2,013 2,340 4.5% 2,340 4.5% 0.3% 64,392 58,958 48,766 6.0% 41 Hotel Oriental Express Ginza West Limited-service Mid-price 220 Tokyo 18.3 8,400 8,489 10,300 3.7% 11,800 3.7% 1.3% 404,571 371,383 356,996 9.9% 42 La’gent Stay Sapporo Odori Limited-service Mid-price 219 Hokkaido 10.0 10,020 10,912 11,800 4.2% 13,000 4.2% 1.5% 441,364 417,818 345,444 7.6% 43 Oriental Hotel Kyoto Rokujo Limited-service Mid-price 166 Kyoto 6.8 4,446 4,533 6,650 4.1% 7,000 4.1% 0.7% 185,328 174,528 155,133 9.3% 44 Hotel Oriental Express Fukuoka Nakasukawabata Limited-service Mid-price 183 Fukuoka 5.2 4,460 4,601 6,280 4.1% 6,760 4.1% 0.7% 283,075 271,487 257,935 12.7% 45 Hotel JAL City Kannai Yokohama Limited-service Mid-price 170 Kanagawa 19.6 4,000 4,001 4,590 4.0% 4,690 4.0% 0.6% 88,698 78,519 61,715 5.1% 46 MIMARU Tokyo Shinjuku West Limited-service Upper-middle 76 Tokyo 6.4 9,645 9,968 14,200 3.6% 15,200 3.6% 1.5% 330,472 312,184 298,153 6.0% 47 HOTEL AMANEK Shinjuku-Kabukicho. Limited-service Mid-price 169 Tokyo 3.3 8,845 9,142 12,900 3.7% 13,400 3.7% 1.4% 293,718 280,584 268,368 6.1% 48 OKINAWA HARBORVIEW HOTEL Full-service Upper-middle 352 Okinawa 51.2 21,562 26,862 24,200 4.6% 24,200 4.5% 3.3% 525,000 501,048 225,817 5.6% 49 Southern Beach Hotel & Resort OKINAWA Resort Mid-price 448 Okinawa 17.2 16,200 16,117 20,300 4.8% 20,300 4.8% 2.5% 294,139 259,173 144,609 5.8% 50 Hilton Fukuoka Sea Hawk Full-service Upper-middle 1,052 Fukuoka 31.3 64,350 64,376 71,700 4.3% 76,600 4.3% 9.9% 2,269,870 2,157,556 1,820,410 6.7% 51 HYATT REGENCY TOKYO Full-service Upper-middle 712 Tokyo 45.9 126,000 126,986 – – 156,000 3.6% 19.4% 2,463,470 2,420,256 2,171,011 5.0% 52 Candeo Hotels Osaka Namba(*9) Limited-service Mid-price 496 Osaka 9.1 14,320 – – – 14,900 3.1％ 2.2% – – – 3.4% Total or Average – – 15,058 – 30.4 648,101 637,692 693,230 – 907,670 – 100.0% 22,568,140 20,070,198 16,282,838 – (*1) For hotel type, "Full-service" refers to a "full-service hotel," "Resort" refers to a "resort hotel," and "Limited-service" refers to a "limited-service hotel." (*2) Mainly based on ADR, etc., JHR has classified the hotels into 4 categories as "luxury," "upper-middle," "mid-price" and "economy." (*3) The age of each property is as of the end of June 2026. Average age is the weighted average calculated as follows: The sum of (acquisition price of each property x property age)/total acquisition price. (*4) The acquisition price in the purchase and sale agreement for beneficial interest in trust, etc. (Consumption tax, an amount equivalent to consumption tax, brokerage fee and other purchase-related costs are excluded.) (*5) Book value is as of the end of June 2026. (*6) The investment ratio column shows the ratio of the acquisition price of each property to the total acquisition price, rounded to one decimal place. (*7) Actual results for 6 months from January to June 2026. Since the lessee did not agree to disclose numbers in units of JPY1,000 for No. 10, the amounts are rounded down to the nearest JPY million. In addition, the total figures include actual results from The Beach Tower Okinawa, which was sold in July 2026. (*8) NOI yield (forecast) is calculated by dividing the NOI (forecast) for the full year FY12/2026 by each acquisition price. The figures for No. 51 and No. 52 are based on annualized forecast NOI. (*9) Candeo Hotels Osaka Namba was acquired on August 3, 2026. The appraisal value and the CAP rate at the end of June 2026 represent those at time of acquisition. (*10)The Beach Tower Okinawa was sold on July 31, 2026. The figures for The Beach Tower Okinawa are not included in total or average figures. (as of the end of June 2026)
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52 5. Summary of Lease Contracts (1/3) No. Property Name Lease Type Rent Structure (*1) Lessee (*2) Hotel Operator/ Hotel Consulting and Management Company Lease/ MC Term Expiration Date of Contract Contractual Rent (*3) Rent Modification Summary Most Recent Rent Modification Summary (After acquisition) Rent Modification Schedule (2026 to 2027) Timing Condition 2026 2027 1 Kobe Meriken Park Oriental Hotel Fixed- lease Fixed + Variable 15 Dec. 2034 For 5 HMJ Hotels JPY3,221MM/year + when Hotel AGOP exceeds JPY4,120MM, the excess x 85% is paid In principle, the same rent will be applied until expiration of the contract. Jan. 2023 Modified Structure – – 2 Oriental Hotel Tokyo Bay 3 Namba Oriental Hotel Hotel Management Japan Co., Ltd. 4 Oriental Hotel Hiroshima 5 Hotel Nikko Alivila Okura Nikko Hotel Management Co., Ltd. 6 Hakone Setsugetsuka (*4) Fixed- lease Fixed Kyoritsu Maintenance Co., Ltd. 20 Oct. 2026 JPY294MM/year The same rent will be applied until expiration of the contract. Nov. 2026 (plan) Increased in fixed rent + Introduced variable rent (plan) To expire (Oct.) – Fixed + Variable 1.7 May 2028 JPY294MM/year + when Hotel GOP exceeds JPY400MM, the excess x 50% is paid – 7 dormy inn Kumamoto(*4) Fixed- lease Fixed + Variable 3 Mar. 2026 JPY194MM/year + when Hotel GOP exceeds JPY400MM, the excess x 40% is paid Rent can be modified through mutual agreement. Apr. 2026 Same fixed rent + Change in rate applied to variable rent – – 5 Mar. 2031 JPY194MM/year + when Hotel GOP exceeds JPY250MM, the excess x 50% is paid 8 dormy inn EXPRESS Asakusa Ordinary Lease Fixed 3 Mar. 2029 JPY63MM/year Rent can be modified through mutual agreement every 3 years. Apr. 2026 Same – – 9 Washington Hotel Plaza Nara Ordinary Lease Fixed Washington Hotel K.K. 3 Mar. 2029 JPY131MM/year Rent can be modified through mutual agreement. Mar. 2026 Same – – 10 Washington R&B Hotel Ueno-hirokoji Ordinary Lease Fixed 3 Apr. 2028 JPY96MM/year Rent can be modified through mutual agreement. Apr. 2025 Increased (+3.0%) – – 11 Comfort Hotel Tokyo Higashi Nihombashi Fixed- lease Fixed + Revenue sharing Greens Co., Ltd. 20 Jan. 2028 JPY242MM/year + Revenue-sharing rent Rent can be modified through mutual agreement every 5 years. Apr. 2018 Same (Introduced Revenue-sharing rent) – – 12 Smile Hotel Nihombashi Mitsukoshimae Ordinary Lease Fixed + Revenue sharing THE KAMOGAWA GRAND HOTEL, LTD. 3 Mar. 2029 JPY134MM/year + Revenue-sharing rent Rent can be modified through mutual agreement. Mar. 2026 Same – – 13 Toyoko Inn Hakata-guchi Ekimae Ordinary Lease Fixed Toyoko Inn Co., Ltd. 30 Sep. 2031 JPY141MM/year No rule has been stipulated. Oct. 2007 Increased (+9.4%) – – 14 Chisun Hotel Kamata Fixed- lease Variable Solare Hotels and Resorts Co., Ltd. SHR Hotels, Co., Ltd. 5 Dec. 2030 Hotel GOP x 88% (If the amount is below JPY0, it will be JPY0) – Jan. 2026 Change in rate applied to variable rent – – 15 Chisun Inn Keikyu Kamata (*4) Fixed- lease Variable 7 Dec. 2026 Hotel GOP x 86% (If the amount is below JPY0, it will be JPY0) – Jan. 2020 Same To expire (Dec.) – 2 Dec. 2028 Jan. 2027 (plan) 16 Oriental Hotel Universal City Fixed- lease Fixed + Variable K.K. Osaka Sakurajima Operations (*) 10.5 Dec. 2031 JPY350MM/year + when Hotel AGOP exceeds JPY370MM, the excess x 95% is paid In principle, the same rent will be applied until expiration of the contract. Jul. 2021 Change in lessee and Modified Structure – – 17 Hilton Tokyo Bay Fixed- lease Fixed + Revenue sharing THE DAI-ICHI BUILDING CO., LTD. Hilton International Company 6 Dec. 2028 JPY1,965MM/year + Revenue-sharing rent Rent can be modified through mutual agreement. Jan. 2019 Renewed (Increased) – – (as of the end of June 2026)
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53 5. Summary of Lease Contracts (2/3) No. Property Name Lease Type Rent Structure (*1) Lessee (*2) Hotel Operator/ Hotel Consulting and Management Company Lease/ MC Term Expiration Date of Contract Contractual Rent (*3) Rent Modification Summary Most Recent Rent Modification Summary (After acquisition) Rent Modification Schedule (2026 to 2027) Timing Condition 2026 2027 18 ibis Styles Kyoto Station – Management contract – AAPC Japan K.K. 17 Dec. 2029 Amount equivalent to Hotel GOP – Jan. 2025 Renewed (Increased) – – 19 ibis Styles Sapporo – Management contract 15 Dec. 2029 Amount equivalent to Hotel GOP – Jan. 2025 Renewed (Increased) – – 20 Mercure Sapporo – Management contract 15 Sep. 2029 Amount equivalent to Hotel GOP – Oct. 2024 Renewed (Increased) – – 21 Mercure Okinawa Naha – Management contract 15 Apr. 2029 Amount equivalent to Hotel GOP – Apr. 2024 Renewed (Increased) – – 22 Mercure Yokosuka Fixed- lease Variable AAPC Japan K.K. 5 Aug. 2029 Linked to Hotel GOP The same rent will be applied until expiration of the contract. Sep. 2024 Renewed (Increased) – – 23 the b ikebukuro Fixed- lease Fixed + Variable Ishin Suidobashi Operations, K.K.(*6) 5 Jul. 2029 JPY142MM/year + Linked to Hotel AGOP The same rent will be applied until expiration of the contract. Aug. 2024 Renewed (Increased in fixed rent) – – 24 the b hachioji Fixed- lease Fixed + Variable 5 Jul. 2029 JPY75MM/year + Linked to Hotel AGOP The same rent will be applied until expiration of the contract. Aug. 2024 Renewed (Increased in fixed rent) – – 25 the b hakata Fixed- lease Fixed + Variable 5 Jul. 2029 JPY99MM/year + Linked to Hotel AGOP The same rent will be applied until expiration of the contract. Aug. 2024 Renewed (Increased in fixed rent) – – 26 the b suidobashi (*4) Fixed- lease Fixed + Variable 7 Dec. 2026 [until December 31, 2026] JPY30MM/year + Linked to Hotel AGOP The same rent will be applied until expiration of the contract. Oct. 2020 Fixed rent was changed (Reduction) To expire (Dec.) – 2 Dec. 2028 [on and after January 1, 2027] JPY75MM/year + Linked to Hotel AGOP Jan. 2027 (plan) Change in fixed rent (To be Increased) 27 Hotel Francs Fixed- lease Fixed + Variable BP Co., Ltd. 6 Dec. 2030 JPY300MM/year + when Hotel GOP exceeds JPY350MM, the excess x 52% is paid The same rent will be applied until expiration of the contract. Oct. 2024 Increased in fixed rent + Introduced variable rent – – 28 Oriental Hotel Okinawa Resort & Spa Fixed- lease Fixed + Variable Lagoon resort Nago Co., Ltd. (*) 10 Dec. 2030 JPY550MM/year + when Hotel AGOP exceeds JPY655MM, the excess x 95% is paid In principle, the same rent will be applied until expiration of the contract. Jan. 2023 Modified structure – – 29 ACTIVE-INTER CITY HIROSHIMA (*4) (Sheraton Grand Hiroshima Hotel) Fixed- lease Fixed + Variable K.K. A.I.C Hiroshima Management (*) Starwood Asia Pacific Hotels & Resorts Pte.Ltd. 11 Dec. 2026 JPY348MM/year + when Hotel AGOP exceeds JPY360MM, the excess x 90% is paid In principle, the same rent will be applied until expiration of the contract. Jan. 2023 Modified Structure To expire (Dec.) – 10 Dec. 2036 Jan. 2027 (plan) Same 30 CANDEO HOTELS Ueno Koen Fixed- lease Fixed Candeo Hospitality Management, Inc. 20 Feb. 2030 Nondisclosure (*6) Rent can be modified through mutual agreement every 3 years. Jul. 2016 Nondisclosure (*6) – – 31 Oriental Hotel Fukuoka Hakata Station Fixed- lease Fixed + Variable Hotel Centraza Co., Ltd. (*) 15 Dec. 2034 JPY425MM/year + when Hotel AGOP exceeds JPY442MM, the excess x 98% is paid In principle, the same rent will be applied until expiration of the contract. Jan. 2023 Modified structure – – 32 Holiday Inn Osaka Namba Fixed- lease Fixed + Variable OW Hotel Operations KK (*) 15 Oct. 2031 JPY576MM/year + when Hotel AGOP exceeds JPY580MM, the excess x 97% is paid In principle, the same rent will be applied until expiration of the contract. Jan. 2023 Modified structure – – 33 Hotel Oriental Express Fukuoka Tenjin Fixed- lease Fixed + Variable K.K Fukuoka Tenjin Operations (*) 10.5 Dec. 2031 JPY150MM/year + when Hotel AGOP exceeds JPY165MM, the excess x 97% is paid In principle, the same rent will be applied until expiration of the contract. Jun. 2021 Change in lessee and Modified structure – – 34 Hilton Nagoya Ordinary Lease Variable Nagoya Hilton Co., Ltd. Hilton International Company 41 Dec. 2029 Nondisclosure(*6) Rent can be modified through mutual agreement. – – – – 35 Hilton Tokyo Narita Airport Fixed- lease Fixed + Variable KK NaritaKosuge Operations (*) 20 Jun. 2037 JPY444MM/year + when Hotel AGOP exceeds JPY450MM, the excess x 93% is paid In principle, the same rent will be applied until expiration of the contract. Jan. 2023 Modified structure – – 36 International Garden Hotel Narita Fixed- lease Fixed + Variable KK NaritaYoshikura Operations (*) 10 Jun. 2027 JPY336MM/year + when Hotel AGOP exceeds JPY360MM, the excess x 98% is paid In principle, the same rent will be applied until expiration of the contract. Jan. 2023 Modified structure – To expire (Jun.) (as of the end of June 2026)
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54 5. Summary of Lease Contracts (3/3) No. Property Name Lease Type Rent Structure (*1) Lessee (*2) Hotel Operator/ Hotel Consulting and Management Company Lease/ MC Term Expiration Date of Contract Contractual Rent (*3) Rent Modification Summary Most Recent Rent Modification Summary (After acquisition) Rent Modification Schedule (2026 to 2027) Timing Condition 2026 2027 37 Hotel Nikko Nara Fixed- lease Fixed + Variable Hotel Management Co., Ltd. (*) Okura Nikko Hotel Management Co., Ltd. 10 Dec. 2030 JPY420MM/year + when Hotel AGOP exceeds JPY440MM, the excess x 95% is paid In principle, the same rent will be applied until expiration of the contract. Jan. 2023 Modified structure – – 38 Hotel Oriental Express Osaka Shinsaibashi Fixed- lease Fixed + Variable K.K. HOTEL ORIENTAL EXPRESS (*) 10 Mar. 2028 JPY110MM/year + when Hotel AGOP exceeds JPY128MM, the excess x 91% is paid In principle, the same rent will be applied until expiration of the contract. Jan. 2023 Modified structure – – 39 Hilton Tokyo Odaiba Fixed- lease Fixed + Variable Tokyo Humania Enterprise Inc. (*) 11 Dec. 2029 JPY1,600MM/year + when Hotel AGOP exceeds JPY1,660MM, the excess x 98% is paid In principle, the same rent will be applied until expiration of the contract. Jan. 2023 Modified structure – – 40 UAN kanazawa Fixed- lease Fixed + Revenue sharing Solare Hotels and Resorts Co., Ltd. SHR Hotels Co., Ltd. 25 Oct. 2042 JPY108MM/year + when annual room sales exceeds JPY270MM, the excess x 30% is paid In principle, the same rent will be applied until expiration of the contract. – – – – 41 Hotel Oriental Express Ginza West (*7) Fixed- lease Fixed + Revenue sharing Sotetsu Hotel Development Co., Ltd. Sotetsu Hotel Management CO., LTD. 3 Mar. 2026 JPY204MM/year + Revenue-sharing rent The same rent will be applied until expiration of the contract. – – – – Fixed + Variable Shimbashi Karasumori Operations Co., Ltd. (*) 10 Dec. 2036 JPY204MM/year + when Hotel AGOP exceeds JPY254MM, the excess x 95% is paid In principle, the same rent will be applied until expiration of the contract. Apr. 2026 Change in lessee 42 La’gent Stay Sapporo Odori Fixed- lease Variable AB Accommo. Co. Ltd. 3.6 Dec. 2027 Linked to Hotel GOP The same rent will be applied until expiration of the contract. May 2024 Changed calculation formula – To expire (Dec.) 43 Oriental Hotel Kyoto Rokujo Fixed- lease Fixed + Variable Kyoto Horikawa Operations Co., Ltd. (*) 14.2 Dec. 2033 JPY171MM/year + when Hotel AGOP exceeds JPY183MM, the excess x 93.5% is paid In principle, the same rent will be applied until expiration of the contract. – – – – 44 Hotel Oriental Express Fukuoka Nakasukawabata Fixed- lease Fixed + Variable Fukuoka Tenyamachi Operations Co., Ltd. (*) 12.7 Dec. 2033 JPY174MM/year + when Hotel AGOP exceeds JPY189MM, the excess x 92% is paid In principle, the same rent will be applied until expiration of the contract. – – – – 45 Hotel JAL City Kannai Yokohama Fixed- lease Fixed + Variable K.K. Yokohama Yamashita-cho Operations (*) Okura Nikko Hotel Management Co., Ltd. 10 Dec. 2033 JPY135MM/year + when Hotel AGOP exceeds JPY150MM, the excess x 95% is paid In principle, the same rent will be applied until expiration of the contract. – – – – 46 MIMARU Tokyo Shinjuku West Fixed- lease Fixed + Variable Cosmos Initia Co., Ltd. 20 Feb. 2040 Fixed rent (Nondisclosure (*6)) + Variable rent (Linked to Hotel GOP) Rent can be modified through mutual agreement every 2 years. Apr. 2025 Increased in fixed rent – Rent revision (Apr.) 47 HOTEL AMANEK Shinjuku-Kabukicho. Fixed- lease Fixed + Variable AMANEK Corporation 20 Mar. 2043 Fixed rent (Nondisclosure (*6)) + Variable rent (Linked to Hotel GOP) Rent can be modified through mutual agreement every 5 years. – – – – 48 OKINAWA HARBORVIEW HOTEL Fixed- lease Fixed + Variable THE HOTELIER GROUP NAHA K.K. (*) 19 Dec. 2034 【until July 31, 2026】 JPY1,050MM/year 【on and after August 1, 2026】 JPY660MM/year + when Hotel AGOP exceeds JPY720MM, the excess x 95% is paid In principle, the same rent will be applied until expiration of the contract. – – – – 49 Southern Beach Hotel & Resort OKINAWA Fixed- lease Fixed + Variable Okinawa Itoman Operations Co., Ltd. (*) 10 Dec. 2035 JPY600MM/year + when Hotel AGOP exceeds JPY650MM, the excess x 93% is paid In principle, the same rent will be applied until expiration of the contract. Dec. 2025 Change in lessee – – 50 Hilton Fukuoka Sea Hawk Fixed- lease Fixed + Variable Hawks Town Corporation (*) Hilton Worldwide Manage Ltd. 10 Dec. 2034 JPY2,040MM/year + when Hotel AGOP exceeds JPY2,100MM, the excess x 95% is paid Rent can be modified through mutual agreement – – – – 51 HYATT REGENCY TOKYO (*8) Fixed- lease Fixed + Variable Nishishinjuku Hotel & Resort Co., Ltd. (*) 11 Dec. 2036 JPY3,600MM/year + when Hotel AGOP exceeds JPY3,720MM, the excess x 97.5% is paid In principle, the same rent will be applied until expiration of the contract. – – – – 52 Candeo Hotels Osaka Namba (*8) Fixed- lease Fixed Candeo Hospitality Management, Inc. 30.1 Jun. 2047 Nondisclosure(*6) In principle, the same rent will be applied until expiration of the contract. – – – – (*1) Rent structure is as follows: Fixed: Fixed rent, Variable: Variable rent, Management contract: Management contract, Fixed + Variable: Property paying both fixed and variable rent Fixed + Revenue sharing: When the sales of the hotel exceed pre-determined amount, additional rent is paid (*2) The lessees marked with (*) are wholly owned subsidiaries of HMJ. (*3) Amount including car park and CAM excluding consumption tax. (*4) dormy inn Kumamoto renewed its lease contract as of April 1, 2026 and Hakone Setsugetsuka is scheduled to renew its lease contract as of November 2026. Also, Chisun Inn Keikyu Kamata, the b suidobashi and ACTIVE-INTER CITY HIROSHIMA (Sheraton Grand Hiroshima Hotel) are scheduled to renew the lease contracts in January 2027. (*5) The lessees of the b ikebukuro, the b hachioji and the b hakata were absorbed into the lessee of the b suidobashi and changed to Ishin Suidobashi Operations, K.K. effective January 1, 2026. (*6) The detailed content of the contract is not disclosed as consent on disclosure has not been obtained from the lessee. (*7) Hotel Oriental Express Ginza West was rebranded from Sotetsu Fresa Inn Shimbashi-Karasumoriguchi effective April 1, 2026. (*8) Since the properties were acquired in March and August 2026, respectively, the summary of the lease contracts at acquisition is shown. (*9) The Beach Tower Okinawa was sold on July 31, 2026. (as of the end of June 2026)
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55 6. Balance Sheet (JPY MM) FY12/2025 End of Fiscal Year FY12/2026 End of Midterm Variance (as of) December 31, 2025 June 30, 2026 ASSETS Current Assets 50,994 33,317 (17,677) Cash and Deposits(*1) 41,981 26,501 (15,479) Operating Accounts Receivables 7,970 5,378 (2,592) Others 1,043 1,437 394 Noncurrent Assets 525,524 655,105 129,580 Net Property and Equipment 484,905 612,462 127,556 Buildings in Trust(*2) 150,285 157,579 7,293 Land in Trust 330,376 450,652 120,275 Others(*3) 4,243 4,230 (12) Intangible Assets 31,612 31,547 (64) Other Assets 9,006 11,095 2,089 Leasehold and Security Deposits 152 152 (0) Others 8,854 10,943 2,089 Deferred Assets 164 347 183 TOTAL ASSETS 576,683 688,770 112,086 FY12/2025 End of Fiscal Year FY12/2026 End of Midterm Variance (as of) December 31, 2025 June 30, 2026 LIABILITIES Current Liabilities 42,908 55,084 12,176 Operating Accounts Payable 4,010 1,200 (2,809) Current Portion of Investment Corporation Bond 13,100 10,100 (3,000) Current Portion of Long-term Loans Payable 22,780 40,400 17,620 Accounts Payable 1,946 1,770 (176) Advances Received 857 840 (16) Others 213 772 558 Long-term Liabilities 240,660 291,435 50,774 Investment Corporation Bonds 20,600 20,600 – Long-term Loans Payable 212,901 263,201 50,300 Tenant Leasehold and Security Deposits 5,202 5,032 (169) Others 1,957 2,601 643 TOTAL LIABILITIES 283,568 346,519 62,950 NET ASSETS Unitholders' Capital 232,708 294,511 61,803 Capital Surplus 21,746 21,746 – Reserve for Temporary Difference Adjustment 6,959 6,490 (468) Reserve for Special Advanced Depreciation 1,174 2,992 1,818 Unappropriated Retained Earnings 27,147 11,791 (15,355) Others 3,377 4,717 1,339 TOTAL NET ASSETS 293,114 342,250 49,136 TOTAL LIABILITIES AND NET ASSETS 576,683 688,770 112,086 (*1) Cash and deposits in trust is included. (*2) The sum of buildings in trust, structures in trust, machinery and equipment in trust, tools, furniture and fixtures in trust, and construction in progress in trust. (*3) The sum of machinery and equipment, tools, furniture and fixtures.
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56 Appendix 3 Investors Composition and Investment Unit Price
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57 (*) Ownership ratio shows the total units held by each investor to the total units issued as of respective date (rounded down to two decimal places). As of the end of December 2025 As of the end of June 2026 Top 10 Major Unitholders Classifications of Unitholders 1. Major Unitholders and Classifications of Unitholders Rank Name No. of Units %(*) 1 The Master Trust Bank of Japan, Ltd. (Trust) 921,516 18.07 2 Custody Bank of Japan, Ltd. (Trust) 866,985 17.00 3 The Nomura Trust and Banking Co., Ltd. (Investment Trust) 271,564 5.32 4 JPMorgan Securities Japan Co., Ltd. 102,250 2.00 5 BNYM AS AGT/CLTS 10 PERCENT 98,730 1.93 6 Meiji Yasuda Life Insurance Company 81,387 1.59 7 STATE STREET BANK AND TRUST COMPANY 505001 78,747 1.54 8 JP MORGAN CHASE BANK 385781 75,273 1.47 9 STATE STREET BANK AND TRUST COMPANY 505103 65,221 1.27 10 Shikoku Railway Company 56,989 1.11 Total 2,618,662 51.37 As of the end of December 2025 As of the end of June 2026 Rank Name No. of Units %(*) 1 The Master Trust Bank of Japan, Ltd. (Trust) 1,097,747 18.59 2 Custody Bank of Japan, Ltd. (Trust) 1,069,332 18.11 3 The Nomura Trust and Banking Co., Ltd. (Investment Trust) 308,611 5.22 4 BNYM AS AGT/CLTS 10 PERCENT 123,430 2.09 5 STATE STREET BANK AND TRUST COMPANY 505001 107,476 1.82 6 GOVERNMENT OF NORWAY 94,004 1.59 7 JP MORGAN CHASE BANK 385781 82,755 1.40 8 Meiji Yasuda Life Insurance Company 81,387 1.37 9 GOVERNMENT OF NORWAY-CFD 65,400 1.10 10 STATE STREET BANK AND TRUST COMPANY 505103 60,337 1.02 Total 3,090,479 52.34 (*) Percentage of investors is percentage of investors in each segment to the total number of investors in JHR, and percentage of investment units is percentage of investment units owned by each segment to the total investment units issued as of respective date (both rounded down to one decimal place). Financial Institutions (Incl. Securities Firms) Other Domestic Firms Foreign Firms & Individuals Individuals & Others Owners No. of Investors No. of Units Individuals & Others 39,289 567,138 Financial Institutions (Incl. Securities Firms) 109 2,731,546 Other Domestic Firms 560 178,673 Foreign Firms & Individuals 644 1,619,649 Total 40,602 5,097,006 Owners No. of Investors No. of Units Individuals & Others 45,276 693,909 Financial Institutions (Incl. Securities Firms) 124 2,990,227 Other Domestic Firms 740 196,528 Foreign Firms & Individuals 711 2,023,342 Total 46,851 5,904,006 No. of Investors No. of Units No. of Investors No. of Units 96.7% 0.2% 1.3% 1.5% 11.1% 53.5% 3.5% 31.7% 11.7% 50.6% 3.3% 34.2% 96.6% 0.2% 1.5% 1.5%
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58 0 100,000 200,000 300,000 400,000 500,000 0 20,000 40,000 60,000 80,000 100,000 120,000 2. Changes in Investment Unit Price and Market Capitalization (*) The unit price of JHR, the Tokyo Stock Exchange REIT index and TOPIX are indexed to the closing price on April 2, 2012, which equals the base value of 100. The TSE REIT Index is a market capitalization-weighted equity index based on free-float shares, covering all Real Estate Investment Trusts (REIT) listed on the Tokyo Stock Exchange. (*1) Price of the real estate investment securities may fall depending on the fluctuations of price of the real estate under management or profitability, etc., and investors may suffer losses. Investors may also suffer losses through the bankruptcy or deteriorated financial condition of the issuer. For the risks of investing in JHR's investment securities, please refer to JHR's securities report dated March 24, 2026. (*2) Including OA (*3) Indicate the third-party allotment conducted March 2021, with sponsor group as allottee. Changes in the investment unit price and market capitalization (Based on the closing price) Price of the investment unit: JPY81,400 Total market capitalization: JPY480.5Bn (based on the closing price of July 31, 2026) Comparison with REIT Index and TOPIX of Tokyo Stock Exchange (TSE) Market Capitalization Investment Unit Price of JHR (JPY) (JPY MM) Sep. 2012 PO(*2) JPY5.0Bn Sep. 2014 PO JPY10.1Bn Jan. 2015 PO(*2) JPY15.6Bn Jun. 2015 PO(*2) JPY10.7Bn Apr. 2013 PO JPY20.5Bn Jul. 2016 PO(*2) JPY34.7Bn Jun. 2017 PO(*2) JPY18.6Bn Jan. 2019 PO(*2) JPY33.3Bn Jan. 2016 PO(*2) JPY14.6Bn Mar. 2021 TPA(*3) JPY0.3Bn Sep. 2023 PO JPY11.8Bn Jul. 2024 PO(*2) JPY33.6Bn Mar. 2026 PO JPY61.8Bn 0 100 200 300 400 500 600 Investment Unit Price of JHR TSE REIT Index TOPIX
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59 Appendix 4 Summary of the Asset Management Company
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60 Company Name Japan Hotel REIT Advisors Co., Ltd. Location Ebisu Neonato 4F, 4-1-18 Ebisu, Shibuya-ku, Tokyo 150-0013 Establishment August 10, 2004 Capital JPY300MM Shareholders SCJ One (S) Pte. Ltd., Kyoritsu Maintenance Co., Ltd., ORIX Corporation Representative Director Hiroyuki Aoki Registration and Licenses Real Estate Broker, Governor of Tokyo (5) No. 83613 Discretionary Transaction Agent by Minister of Land, Infrastructure, Transport and Tourism No. 38 Financial Instruments Business Operator, Director-General of the Kanto Local Finance Bureau No. 334 Member of Investment Management Association of Japan 1. Summary of the Asset Management Company (as of August 26, 2026) <Organization Chart> Corporate Division Accounting Group Shareholders Meeting Board of Directors President & CEO Finance Group Compliance CommitteeInvestment and Operation Committee Auditor Strategic Planning Office Compliance Office Personnel & Administration Group Investment Division Fund Management Group Public REIT Group Acquisitions Group Private Fund Group
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61 2. Features and Governance of the Asset Management Company (1) We explore the possibility of hotels. We create new value and lead hotels to a bright future. We will be the pivot to connect people with various perspectives and a pioneer for the future of hotel industry. We connect hotels, people, and a bright future. Mission Statement Code of Conduct Ideas behind the new mission statement • Through offering opportunities to invest in hotels, we will deliver attractiveness of hotels to many people. • Utilizing our unique asset management know-how and skills, we will create new value and contribute to the development of the hotel industry. • We will enhance sustainability of hotels and contribute to realizing a society that is friendly to people, local community and environment. • We will earn trust of a wide range of various stakeholders involved in the hotel and become the pivot to bring the stakeholders into harmony. • We will challenge the status quo, consider all the possibilities for a better solution and become a bridge to the bright future for the hotels and people. We define "Challenge" and "Teamwork" as the code of conduct for a team member at JHRA. In achieving our mission, "connect hotels, people and future," it is essential to pursue all possibilities and continue exploring to create added value. We will always pursue possibilities through "challenge" by each department and each employee and continue to create added value through cooperation and collaboration based on "teamwork." Be a self-starter, take initiative and demonstrate drive Set high goal and strive to achieve goals Respect creativity and innovation Promote challenge, free from fear of failure Challenge Respect teamwork and collaborate with team-mates Respect others. Respect values and opinions of others Promote "sharing" (idea, knowledge, information, goal, achievement, joy of achievement, lesson, etc.) Make effort for open, frank and sincere communication Teamwork
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62 2. Features and Governance of the Asset Management Company (2) Ability to propose transaction schemes, execute transactions, and plan and execute unprecedented measures of asset management based on an in-depth understanding of hotel operations and a track record of such asset management. Extensive experience in renovation and rebranding through collaboration with many hotel lessees and operators. Strong and long-term relationships with a large number of hotel lessees and hotel operators. High analytical skills and accurate judgment capacity based on rich information and data obtained through a broad network and high credibility. Advanced Expertise There is no seconded employee from sponsor in JHRA. JHRA's Board of Directors of the Asset Management Company comprises a total of 6 directors: 3 directors unaffiliated with the sponsor, 3 part-time directors affiliated with the sponsor, and 1 part-time auditor unaffiliated with the sponsor. This structure ensures a highly independent management, a key characteristic of JHRA. We established a more rigorous decision-making process for transactions with sponsor-related parties. In principle, JHRA undergoes deliberations and resolutions by the Investment and Operation Committee, the Compliance Committee which includes an outside specialist authorized to dismiss proposals, and the Board of Directors Meeting of JHRA. In addition, in cases where JHR conducts transactions with sponsor-related parties, such transactions shall be conducted upon the approval and resolution by the Board of Directors Meeting at JHR. The officers of JHR are all third parties unrelated to the sponsor-related parties. Since our main sponsor, SC Capital Partners Group is also an independent asset management company, it fully understands and respects the importance of JHRA's independency. JHRA conducts asset management business based upon its judgment. Ensured Independence
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63 <Shareholding Structure of JHRA> 3. Our Sponsor No change in investment policy by CLI's participation JHRA maintains autonomy in its decision-making CapitaLand Investment Limited (CLI) Sponsorship Participation • March 7, 2025: CLI acquired 40% of the total outstanding shares of the major sponsor of JHRA (The remaining 60% is scheduled to be acquired in 2 phases— 30% in 3 years and another 30% in 5 years) (*1) • March 24, 2025: JHRA appointed a part-time director of the board from CLI (*2) Same-boat Investment by the Main Sponsor • April to May 2025: SC Capital Partners Group (SCCP Group), the main sponsor of JHRA, conducted additional market purchases of investment units in JHR • Post-acquisition holdings by SCCP Group: Increased from 7,900 units to 38,250 units, representing 0.75% of the total investment units issued by JHR SCJ One (S) Pte. Ltd. Japan Hotel REIT Advisors Co., Ltd. 60% 40% 87.6% Kyoritsu Maintenance Co., Ltd. ORIX Corporation CapitaLand Investment Limited (CLI) SC Capital Partners Group (SCCP Group) Transfer of 40% of shares held in SCCPGH (*1) For details, please refer to the press release, "Notice Concerning Strategic Investment by CapitaLand Investment into Parent Company of the Asset Management Company" dated November 20, 2024. (*2) For details, please refer to the press release, "Notice Concerning Appointment of Director of Asset Management Company" dated March 14, 2025. SCCP Group Holdings Pte. Ltd. (SCCPGH) 100% 10.3% 2.1%
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64 Disclaimer This material is prepared and provided solely for the purpose of providing information of Japan Hotel REIT Advisors Co., Ltd ("JHRA") and not to offer, solicit, or do business, etc. with specific financial instruments including purchase of investment units, or investment corporation bonds of Japan Hotel REIT Investment Corporation ("JHR") or any other financial instruments to invest in private funds. Investors are asked to ensure that they make decisions on investment at their own discretion. If any discrepancy is identified between this translation and the Japanese original, the Japanese original shall prevail. This material is neither a disclosure document nor an investment report required under or prepared pursuant to the Financial Instruments and Exchange Act, Act on Investment Trusts and Investment Corporations, Act on Provision of Financial Services and related government ordinances, cabinet office regulations, listing rules by Tokyo Stock Exchange, regulations of Investment Management Association of Japan or other related rules and regulations. The statements of JHR and private funds in this material are based on the judgment, evaluation and forecast of JHRA. This material contains forward-looking statements about financial conditions, operational results, and businesses of JHR, private funds and JHRA, as well as plans and intentions of JHR, private funds and JHRA. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results or performance of JHR, private funds and JHRA to materially differ from those expressed or implied forecasts. Those forecasts are made based on present and future business strategies and assumptions relating to the political, economic and other circumstances surrounding JHR, private funds and JHRA in the future. Every effort has been made to ensure the accuracy of the information contained in this material. However, there can be no assurance that the information is accurate, complete, appropriate or fair. The information may be revised or retracted without prior notice. Regarding the offering and trading of investment units, investment corporation bonds or any form of financial instruments to invest in private funds, financial institutions may charge you pre-determined handling fees and other charges aside from the price of the investment units, investment corporation bonds or any form of financial product to invest in private funds. JHRA does not handle the offering and trading of investment units, investment corporation bonds or any form of financial instruments to invest in private funds. JHR and private funds managed or advised by JHRA mainly invests in real estate-related assets, primarily hotels which are subject to change in values. Therefore, holders of investment units, investment corporation bonds or investors of any form of financial instruments to invest in private funds may suffer losses due to economic conditions including real estate market, securities market, economic situations including interest rate environment, the nature of investment units investment corporation bonds or any financial instruments to invest in private funds, dependency on mechanisms and related persons of investment corporations or investment vehicle of private funds, changes in legal systems related to real estate (include tax regulations, building regulations and others), damage caused to the real estate-related assets by natural disasters, fluctuation in prices or profitability of the real estate-related assets, nature of the financial instrument under management, delisting of the investment units, or worsening financial position or insolvency. The contents of this material may not be copied or reproduced without our prior permission. Japan Hotel REIT Advisors Co., Ltd. Financial Instruments Trading Company Director-General of Kanto Local Finance Bureau No. 334 Member of Investment Management Association of Japan
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65 Memo