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Investor Presentaiton

-20% -30% Summary of Four Hotels with Variable Rents Steady recovery in each hotel, with the total actual rent performance of Four Hotels with Variable Rents reaching 89% of the level of the same period in 2019 Shangri-La Although monthly volatility is high, rents calculated based on hotel revenue continue to recover, exceeding 2019 levels in some months • Monthly volatility has been decreasing in recent months Rents vs. 2019 (Percent Change) 30% Period reflected in rents for the 20% FP ended Aug. 2023 10% 0% -10% Hilton Odawara • In the accommodation sector, the recovery trend in domestic leisure demand due to the reclassification of COVID-19 as Class 5 was leveraged and sales at high unit prices continued, centering on holidays, to raise revenues. • Improved consumer sentiments have led to an increase in the number of day trip guests opting for lunch and dessert buffets, swimming pools, and natural hot springs, contributing to the hotel's performance. Total Sales vs. 2019 (Percent Change) 20% 0% Period reflected in rents for the FP ended Aug. 2023 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 -20% -40% Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 • . Courtyard Tokyo The accommodation sector continues to pursue a high-unit-price strategy, targeting overseas business travelers, by attracting customers mainly through Marriott.com. Going forward, the challenge will be to achieve both ADR and Occupancy rates. (Reference) Share of foreign guests in the total number of guests Apr-23 May Jun. Jul. 73.4% 64.2% 65.5% 70.6% Aug. 68.2% In the food and beverage sector, sales of BBQ plans utilizing terrace seating and free-flow plans led to a steady recovery, with average customer spend reaching a level exceeding that of 2019. • Courtyard Shin-Osaka Regarding ADR, while continuing the high unit-price strategy focusing on individual customers, proactive efforts to attract group customers supported the occupancy rate. Inbound travel is increasing for not only leisure but also business use by foreign-affiliated companies. Although the majority of visitors are from the U.S., use from mainland China (mainly individual visitors) has been on the rise recently and is now second in volume only to the U.S. (Reference) Share of foreign guests in the total number of guests Apr-23 May 67.2% Jun. 52.5% 61.3% Jul. Aug. 54.3% 43.2% Hotel Indicators vs. 2019 30% Period reflected in rents for (Percent Change) the EP ended Aug. 2023 20% ADR for the same month 10% of 2019 (%) RevPAR for the same 0% month of 2019 (%) OCC for the same month of 2019 (%pt) -10% -20% OCC (43rd FP) 76.2 % -30% ADR (43rd FP) 30,938 yen RevPAR (43rd FP) 23,581 yen Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Hotel Indicators vs. 2019 (Percent Change) 20% ADR for the same month of 2019 (%) 10% 0% RevPAR for the same month of 2019 (%) -10% OCC for the same month of 2019 (%pt) OCC (43rd FP) -20% Period reflected in rents for the FP ended Aug. 2023 81.0 % -30% ADR (43rd FP) 20,359 yen RevPAR (43rd FP) 16,486 yen Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 5 Aug-23
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