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Investor Presentaiton

Summary of Internal Growth Strategy (Hotel) Hotel Recognition of External Conditions • In light of the recovery of inbound demand and the weak yen, ADR is increasing and RevPAR at each hotel is trending upward. . • Compared to leisure demand, the recovery in demand is lagging for domestic and foreign business use and group use (banquets, weddings, MICE, etc.). Besides energy costs, attention needs to be paid to increased operating costs due to rising prices and wage levels, the impact of the labor shortage, etc. Condition of Hotel Market Changes in Number of Inbound (vs.2019) Europe and North America Asia (excluding China) • • • Future Policy We will actively capture inbound demand with high room rates via international brand sales channels, etc. We will bring in domestic and foreign business use and group use (banquets, weddings, MICE, etc.), which are expected to recover, by enhancing sales to corporations, agencies, etc. With the aim of maximizing GOP, we will respond to rising operation costs by continuing to raise ADR and achieving operational efficiency (streamlining such as staffing flexibility within the hotel group and joint sales activities). Aiming for rapid recovery to pre-pandemic (2019) rent levels and further growth. Accommodation Consumption Unit Price by International Visitors (per Person per Visit to Japan) Condition of Hotel Operating Scope for Rent Increases at Four Hotel Properties with Variable Rent (Per Investment Unit/Year) (Note 1) Rent levels before Pandemic of COVID-19 1,087 Total China 140% 120% 100% 80% 60% 40% 20% 0% Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 (yen) 90,000 122.9% 80,000 107.7% 70,000 60,000 85.6% 50,000 52,504 40,000 30,000 36.4% 20,000 10,000 0 Aug-23 (Source) Japan National Tourism Organization (JNTO) (Note) The figures for July and August 2023 are estimates. 78,977 (yen) 1,000 2018 2019 2020 2022 2023 2023 1Q 4Q 1Q 2Q (Source) Prepared by MTR based on International Visitor Survey published by Japan Tourism Agency (Note) Data for 2020 Q2 to 2022 Q3 are missing due to suspension of the survey during the pandemic. 800 779 600 400 200 0 Actual (42nd FP) +Actual (43rd FP) 1965 952 Actual (43rd FP) +Forecast (44th FP) Forecast (44th FP) +Forecast (45th FP) Actual (FP ended Aug.2019) +Actual (FP ended Feb.2020) 18
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