Japan Hotel REIT Toshi Hojin

Latest Results (07.08.2024):

Revenue Growth

Japan Hotel REIT Toshi Hojin reported a significant increase in revenue for the mid-term period of 2023. Operating revenue reached ¥11,288 million, reflecting a strong recovery in the accommodation and tourism market. This growth was driven by improved sales through effective revenue management and a quick response to the anticipated recovery in demand for accommodation.

Profitability Improvement

During the mid-term period of 2023, Japan Hotel REIT Toshi Hojin achieved a notable increase in profitability. The Gross Operating Profit (GOP) for the 25 Hotels with Variable Rent surged by 348.8% year-on-year to ¥8,164 million. This improvement was attributed to successful cost management measures and a recovery in the accommodation market.

Net Income

Japan Hotel REIT Toshi Hojin reported a net income of ¥4,896 million for the mid-term period of 2023. This positive financial result underscores the company's effective asset management and strategic initiatives to enhance profitability amid a recovering market environment.

Dividends

Japan Hotel REIT Toshi Hojin does not distribute earnings during the mid-term period under review, as investment corporations do not have a system for interim dividends under the Investment Trusts Act. Earnings distribution will be based on the full-year results for the period from January 1, 2023, to December 31, 2023, with earnings exceeding 90% of the distributable profit to be distributed.

Outlook

Japan Hotel REIT Toshi Hojin is optimistic about the second half of 2023, expecting further recovery in the Japanese economy and the hotel market. The company anticipates strong domestic travel demand and a recovery in inbound tourism, particularly following the lifting of Japan's entry restrictions and China's relaxation of group travel restrictions. JHR aims to maximize GOP and rent through strategic measures with lessees and operators.