Hoshino Resorts REIT, Inc. announced that Hoshino Resort Asset Management Co. Ltd. to which HRR entrusts asset management, has decided to lease "Hotel Nikko Kochi Asahi Royal (hereinafter it may be referred to as the "Property"), a property owned by HRR, from April 1, 2023, as stated below. The other party to the said lease is a corporation established by ASAHI SHOKUHIN CO., LTD. (hereinafter "ASAHI SHOKUHIN"), which is the tenant of the Property as of today; and the corporation is scheduled to become a wholly owned subsidiary of Hoshino Resorts Group (collectively referring to Hoshino Resorts Inc., its parent company and its subsidiaries; the same shall apply hereinafter) at the same time as the commencement of leasing, and will fall under an interested party, etc., under the Act on Investment Trusts and Investment Corporations (Act No.

198 of 1951 including subsequent amendments; hereinafter the "Investment Trust Act"), as well as an interested party, etc. under the "Interested Party Transactions Rules" which are internal rules of the Asset Management Company. Therefore, pursuant to the "Interested Party Transactions Rules," the Asset Management Company has obtained the consent of HRR based on the approval of HRR's Board of Directors' Meeting held on February 21, 2023.

Furthermore, through the conclusion of the lease agreement this time, HRR will have the right to purchase, at any time, at the book value at that time, the facilities that will be newly owned by the tenant upon the renewal. In addition, HRR believes that if it makes an offer to the tenant for the purchase, it will have the right to discuss with the tenant about the timing of the purchase and any changes to the rent structure based on that, by which a further increase in the rent can be expected.