Notice Concerning Revision of Operating and Dividend Forecasts for Fiscal Year Ended December 2025 (26th Period) and Operating and Dividend Forecasts for the Fiscal Year Ending December 2026 (27th Period)

January 22, 2026 REIT Issuer:

Japan Hotel REIT Investment Corporation (TSE code: 8985) Kaname Masuda, Executive Director

Asset Management Company:

Japan Hotel REIT Advisors Co., Ltd. Hiroyuki Aoki, President & CEO Contact:

Noboru Itabashi

Director of the Board, Managing Director Head of Corporate Division

TEL: +81-3-6422-0530

Notice Concerning Revision of Operating and Dividend Forecasts for Fiscal Year Ended December 2025 (26th Period) and Operating and Dividend Forecasts for the Fiscal Year Ending December 2026 (27th Period)

Japan Hotel REIT Investment Corporation (hereinafter called “JHR”) announces revisions to the operating and dividend forecasts for the fiscal year ended December 2025 (January 1, 2025 through December 31, 2025), announced in “Midterm Financial Report for the Fiscal Year Ending December 31, 2025” dated August 25, 2025. JHR also announces the operating and dividend forecasts for the fiscal year ending December 2026 (January 1, 2026 through December 31, 2026) as follows:

1. Revision of operating and dividend forecasts for the full year ended December 2025 (January 1, 2025 through December 31, 2025)

   	Operating revenue	Operating income	Ordinary income	Net income	Dividend per unit (Excess of earnings exclusive)	Dividend per unit resulting from excess of earnings
   Previous forecast (A)	JPY1M 44,669	JPY1M 30,221	JPY1M 25,666	JPY1M 26,063	JPY 4,830	JPY —
   Forecast this time (B)	JPY1M 45,564	JPY1M 31,047	JPY1M 26,743	JPY1M 27,140	JPY 5,060	JPY —
   Variance (C) = (B)－(A)	JPY1M 894	JPY1M 826	JPY1M 1,076	JPY1M 1,076	JPY 230	JPY —
   Variance ratio (D) = (C) / (A)	% 2.0	% 2.7	% 4.2	% 4.1	% 4.8	% —

   (Reference) Forecast of net income per unit for the full fiscal year: JPY5,324

   (Calculated based on the average number of investment units during the period (5,097,006 units))

   (*1) Dividend per unit is calculated based on the number of investment units issued as of today: 5,097,006 units.

   (*2) Total dividend is planned to be calculated by adding the reversed amount of reserve for temporary difference adjustment (JPY468 million) to the net income and subtracting the amount of reserve for advanced depreciation (JPY1,818 million).

   (*3) For the details of the operating and dividend forecasts above, please refer to “Assumptions for the operating forecast for the full fiscal year ended December 2025 (26th period)”

   (*4) Amounts are rounded down to the nearest millions of yen and percentages are rounded off to the nearest first decimal place. The same shall apply hereinafter.

2. Operating and dividend forecasts for the fiscal year ending December 2026 (January 1, 2026 through December 31, 2026)

   	Operating revenue	Operating income	Ordinary income	Net income	Dividend per unit (Excess of earnings exclusive)	Dividend per unit resulting from excess of earnings
   FY12/2026 Midterm	JPY1M 19,462	JPY1M 12,107	JPY1M 9,605	JPY1M 9,605	JPY —	JPY —
   FY12/2026 Full year	JPY1M 44,840	JPY1M 29,455	JPY1M 24,219	JPY1M 24,218	JPY 5,177	JPY —

   (Reference) Forecast of net income per unit for the full fiscal year: JPY4,751

   (Calculated based on the average number of investment units during the period (5,097,006 units))

   (*1) Dividend per unit is calculated based on the number of investment units issued as of today: 5,097,006 units.

   (*2) Total dividend is planned to be an amount of net income plus the reversed amount of reserve for temporary difference adjustment in the amount of JPY2,171 million.

   (*3) For the details of the operating and dividend forecasts above, please refer to “Assumptions for the operating forecast for the midterm and full fiscal year ending December 2026 (27th period).”

   (*4) Amounts are rounded down to the nearest millions of yen and percentages are rounded off to the nearest first decimal place. The same shall apply hereinafter.

3. Rationale for revisions of the operating forecast

   Since the operational results of each hotel through December 2025 have almost become clear, JHR has revised the operating and dividend forecasts for the fiscal year ended December 2025, and newly announces the operating and dividend forecasts for the fiscal year ending December 2026.

   In the fiscal year ended December 2025, domestic demand remained strong in the second half, and demand from inbound visitors continued its increasing trend. In this environment, the performance of hotels continues to be favorable due to the increase in both domestic and international demand.

   Operating revenue for the fiscal year ended December 2025 is expected to increase by JPY894 million compared to the previous forecast, mainly due to an increase in variable rent associated with the favorable performance of the hotels. Meanwhile, operating expenses are anticipated to increase by JPY68 million due to a review of various expenses related to the property and operating expenses, etc. Non-operating expenses are expected to decrease by JPY194 million, primarily due to a reduction in financing costs. As a result, net income is forecast to increase by JPY1,076 million compared to the previous forecast.

   For a detailed comparison with the previous forecast, please refer to “4. Highlights of the operating and dividend forecasts” below.

   Furthermore, the forecast dividend per unit for the fiscal year ending December 2026 is expected to increase by 2.3% year on year, supported by solid domestic and international accommodation demand. On a normalized basis, excluding temporary factors such as gain on sale recorded in the fiscal year ended December 2025, the dividend is expected to increase by 6.1%. In addition, the operating and dividend forecasts for the fiscal year ending December 2026 incorporate to a certain degree the expected impact on the performance of the hotels owned by JHR due to the Chinese government’s request to refrain from traveling to Japan. At the same time, each hotel continues to engage in active sales and marketing efforts targeting Asia, as well as Europe, the U.S. and Australia. By capturing demand from these markets in addition to steady domestic demand, the performance of the hotels is expected to continue to be strong.

   In addition, in order to further enhance JHR’s revenue, a large-scale renovation is planned for Hilton Tokyo Odaiba from February 2026 to the end of December 2027. For an overview of the renovation work, please refer to today’s press release “Notice Concerning Renovation Work at Hilton Tokyo Odaiba.”

4. Highlights of the operating and dividend forecasts

   1. Comparison and the major factors causing the variance with the operating and dividend forecasts for the full fiscal year ended December 2025 (26th period) (current forecast) and the previous forecast.

      (Unit: millions of yen)

      FY12/2025 (26th Period)	FY12/2025 (26th Period)
      Previous Forecast (A)	Current Forecast (B)

      Difference	Factors Causing Variance
      % of (B)-(A) increase/ decrease

      Properties	No. of Properties			51	51		－ －
      	Acquisition Price			515,391	515,391		－ －
      Profit and Loss	Operating Revenue			44,669	45,564		894 2.0%
      		Real Estate Operating Revenue		42,323	43,218		894 2.1%
      			Fixed Rent Composition	19,282 46.7%	19,293 45.9%		11 0.1%
      			Variable Rent Composition	21,981 53.3%	22,780 54.1%		799 3.6%	The 28 Hotels with Variable Rent, etc. (*1): ＋JPY525MM Others: ＋JPY273MM
      			Other Income	1,059	1,144		84 8.0%
      			Gain on Sale of Properties	2,346	2,346		－ －
      	NOI (*2)			37,666	38,554		888 2.4%
      	NOI after Depreciation (*2)			30,952	31,652		699 2.3%
      	Operating Income			30,221	31,047		826 2.7%
      	Ordinary Income			25,666	26,743		1,076 4.2%
      	Net Income			26,063	27,140		1,076 4.1%
      							96 25.8%	Amount of reversal from reserve for temporary difference adjustments Previous Forecast: 50-year amortization amount on negative goodwill: JPY262MM Loss on retirement of noncurrent assets: JPY110MM Current Forecast: 50-year amortization amount on negative goodwill: JPY262MM Loss on retirement of noncurrent assets: JPY206MM
      							－ －
      							1,172 4.8%
      							－ －
      							230 4.8%

      Dividend	Amount of Reversal from Reserve for Temporary Difference Adjustments (Negative Goodwill)	372	468
      	Amount of Reserve for Tax Purpose Reduction Entry	(1,818)	(1,818)
      	Total Dividends	24,618	25,790
      	No. of Unit Issued (Unit)	5,097,006	5,097,006
      	Dividend per Unit (JPY)	4,830	5,060

      (*1) The 28 Hotels with Variable Rent, etc. refer to the following 28 hotels. The same shall apply hereinafter.

      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 Hilton Tokyo Odaiba

      Oriental Hotel Kyoto Rokujo

      Hotel Oriental Express Fukuoka Nakasukawabata Hotel JAL City Kannai Yokohama

      ibis Styles Kyoto Station ibis Styles Sapporo Mercure Sapporo Mercure Okinawa Naha Mercure Yokosuka

      the b suidobashi

      the b ikebukuro the b hachioji the b hakata

      (*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

   2. Comparison and the major factors causing the variance with the operating and dividend forecasts for the full fiscal year ending December 2026 (27th period) and the forecast of the previous period.

Composition

22,780

54.1%

1,144

24,094

55.1%

1,075

1,313

(68)

The 29 Hotels with Variable Rent, etc. (*): +JPY2,110MM

5.8% Impact of room closures due to large-scale renovation at Hilton Tokyo

Odaiba: (JPY1,685MM)

Others: ＋JPY889MM

(6.0%)

Amount of reversal from reserve for temporary difference adjustments

1,702 363.3% 26th Period:

50-year amortization amount on negative goodwill: JPY262MM Loss on retirement of noncurrent assets: JPY206MM

1,818 (100.0%)

27th Period:

596

—

117

2.3% 50-year amortization amount on negative goodwill: JPY262MM Loss on retirement of noncurrent assets: JPY50MM

— Large-scale renovation: JPY1,859MM

2.3%

(Unit: millions of yen)

(*) The 29 Hotels with Variable Rent, etc. refer to the following 29 hotels, which exclude Hilton Tokyo Odaiba from the “28 Hotels with Variable Rent, etc.” and include Southern Beach Hotel & Resort OKINAWA and Hilton Fukuoka Sea Hawk. The same shall apply hereinafter.

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