Kasumigaseki Hotel REIT leverages the development and operational capabilities of the Sponsor, the Kasumigaseki Capital Group, to invest in multi-occupancy hotels across Japan, a segment where supply remains insufficient in the domestic hotel market. Through these investments, Kasumigaseki Hotel REIT aims to contribute to the advancement of Japan as a tourism nation while pursuing sustainable growth and enhancing unitholder value.

Investment Highlights

• 01Focused investment in multi-occupancy hotels centrally managed by the Sponsor Group
• 02Rental structure linked to hotel profit (GOP), combined with operation efficiency and labor-saving operations to enhance profitability
• 03Growth potential driven by the Sponsor’s robust development pipeline

The concepts of the hotel brands operated by the Sponsor Group

Kasumigaseki Hotel REIT prioritizes investment in multi-occupancy hotels under the brands “fav,” “FAV LUX,” and “seven x seven,” which are located in cities with strong tourism demand potential, as part of its commitment to supporting the advancement of Japan as a tourism nation.

Stay together, Play together
A brand of simple and stylish multi-occupancy hotels that balances labor-savings with hospitality.

Where luxury goes to play
A high-end hotel brand that redefines “contemporary luxury” for evolving times.

Support from the Sponsor Group

Kasumigaseki Hotel REIT has introduced a rental structure in which streamlined operations keep down hotel operation costs while hotel revenues rise, driven by rising inbound tourism demand and inflation. The resulting increase in GOP has the potential to increase rent revenue for Kasumigaseki Hotel REIT and to contribute to higher distributions.

• The “Illustration of Hotel Revenue, Distributions, etc.” is provided solely as a conceptual diagram to explain a rent structure that the is investment corporation may adopt. The height of the bars in the chart does not represent actual proportions. In addition, this rent structure will not necessarily be applied to all acquired assets. In fact, at the time of acquisition, a fixed rent structure will be adopted for seven x seven ITOSHIMA, FAV LUX KAGOSHIMA TENMONKAN, FAV LUX NAGASAKI, and seven x seven ISHIGAKI. Furthermore, there is no assurance that the same rent structure will be adopted for properties to be that are acquired in the future.

• “Development pipeline projects” refer to projects in the project pipeline (Sponsor Group projects, whether in progress or already completed, and future projects for which real estate has already been acquired for development) that may become acquisition candidates for Kasumigaseki Hotel REIT.
• Development pipeline projects are not guaranteed to be acquired by Kasumigaseki Hotel REIT, nor does the Kasumigaseki Hotel REIT hold exclusive negotiation rights.
• Some development pipeline projects are owned (or expected to be owned) by entities outside the Sponsor Group, and the Sponsor Group only provides (or plans to provide) management or consulting services.
• The figure shows, for all projects in the pipeline and for their hotel properties, as of the end of each month, the sales prices for properties which the Sponsor Group sold following the completion of development and which the Sponsor Group is involved in asset management, and the total development cost for projects whose development has not yet been completed or which have not yet been sold, based on the Sponsor's development plans. Undisclosed projects (limited to projects for which the Sponsor has concluded a real estate acquisition agreement but for which settlement is pending) are also included in these figures.

Yufuin Hotel PJ

Awaji Island Sumoto Hotel Project

FAV LUX Sapporo Susukino

Miyazaki City Tachibanadori Higashi Hotel Project

Shodoshima Yasuda Hotel Project

Nagoya Marunouchi Hotel Project