Investment Policy and Growth Strategies
Investment Policy
Japan Hotel REIT Investment Corporation(JHR) is the J-REIT that specifies in hotels. JHR has the basic principle of ensuring the steady growth and stable revenue to operate assets.
Growth Strategies
JHR aims to maximize investment value of unitholders based on the following growth strategies.
External Growth Strategy |
|
---|
Internal Growth Strategy | Pursue both stability and upside potential by steadily implementing active asset management strategies |
---|
Plan and implement the "Active Asset Management Strategy" for revenue upside
- Make strategic CAPEX which will improve profitability and strengthen competitiveness mainly at hotels with high growth potential
- Raise rent or change the rent structures to achieve upside revenue
- Reduce the management contract fee for properties that are under the management contract
- Increase hotel revenue through collaboration with high-quality operators
- Attract inbound demand through rebranding to international brands, etc.
- Make proactive proposals to build effective hotel operating structures which aim to maximize GOP from the perspective of both hotel sales and expenses
- Stimulate and capture domestic demand by creating products utilizing the characteristics of each hotel in line with the current market environment
Plan and execute strategic capital investments for steady revenue, and monitor lessees
- Analyze the creditworthiness of hotel lessees, understand income and expenses of each hotel, and improve rent-payment capacity of hotel lessees though close monitoring
- Maintain and improve the rent-paying capacity of tenants, etc., through capital expenditures, which lead to maintaining and enhancing competitiveness and asset value
Financial Strategy |
|
---|
Improve financial stability by fixing interest rates, etc., as necessary, while considering the diversification of repayment periods
Optimize funding costs
Maintain LTV level at a maximum of 50% (total asset base) for the time being
Maintain good relationship with financial institutions
Diversify financing methods such as public offerings and issuance of investment corporation bonds