Japan Hotel REIT Investment Corporation announced interim results for its 27th fiscal period, disclosing business developments including acquisitions and sales planned for the second half, as well as revisions to its full-year forecasts.
Japan Hotel REIT Investment Corporation released interim results for its 27th fiscal period (fiscal year ending December 2026). From January through June, it carried out an additional issuance of investment units and acquired Hyatt Regency Tokyo. Key indicators, including variable rent, showed higher RevPAR year on year, while the absence of property sale gains recorded in the previous period resulted in lower profit for the current period.
At the end of the interim period, the portfolio comprised 52 properties, with total acquisition costs of approximately ¥641.3 billion. The interest-bearing debt ratio was 34.5% on a book-value basis and 48.5% on a market-value basis. In the second half beginning in July, the investment corporation plans to acquire Candeo Hotels Osaka Namba and sell The Beach Tower Okinawa. Variable-rent RevPAR is expected to rise 4.2% year on year to ¥19,619.
Although a decline in revenue is expected as a result of extensive renovations at Hilton Tokyo Odaiba, higher rental income and a ¥24,071 million contribution from property sale gains are expected to drive approximately 92% year-on-year profit growth for the full year. Distribution per unit is expected to increase 14.8% year on year to ¥5,811, while retained earnings of ¥18,107 million will be secured and the number of investment units is expected to increase by approximately 15.8%.