Basic Policy

JHR and JHRA endeavor to build sound relationships with our stakeholders including unitholders, hotel guests, hotel lessees, hotel operators, business partners including property managers, local communities, officers and employees of the JHRA and others, and to fulfill our social responsibility expected by each of them.

Initiatives for Unitholders

●Proactive IR activities

We proactively participate in conference for investors in Japan and overseas.

●Proactive information disclosure

We actively disclose information using various communication tools (Financial Results Briefing, Asset Management Report and Press Release, etc.). Moreover, we disclose business result of our major hotels through press release every month.

Initiatives for Local Communities/Contribution to Regional Revitalization (Cooperation with Lessees, etc.)

Regional Co-creation Initiatives

Hotel Management Japan Co., Ltd. (HMJ), the strategic operator of JHR, is committed to a "Regional Co-creation" strategy, working together with local communities to create valuable experiences.

Kobe Meriken Park Oriental Hotel

As part of this initiative, the hotel collaborates with local Kobe businesses to develop and sell original hotel products. One such innovation is "Kobe Leather," a sustainable material made by repurposing unused Kobe beef hides that would have otherwise been discarded. This eco-friendly leather has gained attention as a new sustainable resource.
By partnering with local businesses and communities, HMJ not only develops products that highlight Kobe's unique appeal but also contributes to the revitalization of the region as a whole.

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Commitment to Local Production and Consumption

Engagement with Local Communities

Hotel Nikko Alivila

The hotel actively participates in various regional events, including the Yomitan Festival, traditional Okinawan rowing competitions (Haarii), beach cleanups, and peace education initiatives, such as cleaning natural caves known as "Gama," which hold historical significance. Furthermore, the hotel's quarterly magazine introduces local topics and cultural experiences, encouraging guests to explore not only the hotel but also the surrounding village.

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Hotel Nikko Alivila's Registration as "Okinawa SDGs Partner"

Key Initiatives:

• Turning off coastal searchlights (since 2006) To protect sea turtles that lay eggs and hatch at night, as well as other nocturnal wildlife, the hotel turns off searchlights facing the ocean. Additionally, footlights have been installed on the beach to ensure guest safety.
• Use of green energy (since 2006) The hotel's "Patio Illumination" event is powered by green electricity, derived from renewable energy sources such as solar, wind and biomass.
• Eco-friendly fireworks (since 2008) The hotel uses biodegradable fireworks, which are made from materials designed to reduce residue volume and accelerate natural decomposition.
• Recycling food waste into animal feed
• Initiatives to create a woman-friendly workplace
• Internship programs for domestic and international students, employment of foreign staff and people with disabilities

Disaster Relief Donations

As a hotel asset management company that coexists with the local community, JHRA makes disaster relief donations to be used for rescue and restoration activities in the affected areas as follows:

• The 2016 Kumamoto Earthquake (April 14, 2016)
• The 2024 Noto Peninsula Earthquake (January 1, 2024)

Initiatives for Employees

In order to maintain its professional expertise and continue performing stable asset management, JHRA believes it must be a company in which highly motivated, exceptional human resources are able to achieve excellent performance over the long term. It provides an appealing, pleasant work environment where exceptional employees remain highly motivated to enhance their quality and have incentives to continue working there in the medium to long term.

Initiatives for HR Development

Viewing human resources as its most important asset, JHRA supports employees' career development by implementing various development programs that enable each individual to grow through their work while expressing their individuality and achieving personal fulfillment.

●HR development (professional skills development)

With the aim of cultivating REIT and real estate management professionals, we recommend and support the acquisition of professional certifications such as ARES (Association for Real Estate Securitization) Certified Master (an educational program that systematically teaches practical, specialized knowledge in the real estate and finance fields) for all officers and employees, and throughout the year, the company covers the full cost of participation in training and seminars relating to practical knowledge, industry trends, complying with laws, etc.

Certification Holders (as of December 31, 2024)

●HR development (general skills development)

In order to support efforts aimed at acquiring the specialized expertise and qualifications required to carry out the responsibilities of their position and improve their skills, we offer training programs conducted by external organizations to all employees, as well as supporting expenses for personal development using the Cafeteria Plan program.

●HR development (leadership development)

We regularly conduct various training programs aimed at acquiring the abilities and skills required at each level of the organization for the purpose of cultivating the next generation of management and leader.

＜Examples of training programs＞

Initiatives for Employee Health and Well-being

With the purpose of ensuring employees' mental and physical health and establishing a comfortable work environment, JHRA promotes work-life balance and initiatives to improve mental and physical health and pursues initiatives to enhance job satisfaction.

●Establishment of Health Committee

Even though the size of our workplace does not oblige us to establish under the Industrial Safety and Health Act, we have established a Health Committee with the aim of improving Standards of labor health for employees and maintaining and promoting wellness. The committee, which meets once a month, reviews matter including the status of work by all employees and the well-being and safety of the work environment, and after meetings, advice from an occupational health physician is distributed to all employees.

●Encouraging regular health checks, flu shots, etc.

In general, we subsidize costs related to regular health checks/screenings once a year and costs related to flu shots and we encourage employees to take health checks and vaccinations by these measures. Moreover, we implement a system that enables those who desire it to consult with an occupational health physician about mental health issues as needed.

●Establishment of employee consultation service

For the purpose of protecting employees' human rights and strengthening compliance management as well as for prevention, early detection, and correction of conduct that violates laws and regulations, fraud, harassment, etc., we have set up whistleblowing regulations that apply to all employees and established an employee consulting service. We set the Compliance Office as an in-house contact point and an external lawyer as an external contact point. Employees may report or consult with consulting service anonymously.

●Consideration of human rights, diversity, and equality of opportunities

Our in-house regulations stipulate that the acts of discrimination based on ethnicity, religion, gender, age, origin, nationality, etc., shall not be allowed. Through activities such as compliance training, we promote respect for various perspectives and values and pursue awareness activities to eliminate discrimination and harassment.

●Preparation of environment where senior personnel can be active

We have introduced a re-employment system for employees aged 60 and over who wish to continue working. We have established a labor environment where senior personnel may remain active after the official retirement age by leveraging their work experience and expertise.

●Preparation of office environment

Our offices are amply equipped with common spaces that promote communication between employees, and spaces are also provided for individuals to rest. Furthermore, we are taking steps to implement a comfortable work environment, such as hiring an external specialist company to perform periodic air cleaning maintenance in order to ensure excellent air quality.

●Pension plans and fund installment program under NISA at workplace（Employee Stock Purchase Plan）

To help employees build up assets for the future and enjoy a comfortable standard of living after retirement, we have introduced a defined contribution pension plan (401k) as well as a defined benefit pension plan and other measures.
Furthermore, with the purpose of maintaining officers' and employees' motivation for improving unitholder value over the medium to long term by having the same perspective as unitholders, we have introduced fund installment program under NISA at workplace for all officers and employees, under which the company provides contributions equal to a certain percentage of individuals' contributions as an incentive. We made it possible to acquire investment units of JHR by officers and employees under the program while paying attention to insider information.

●Implementation of various benefits (programs for all officers and employees)

• Sick leave *Leave which may be taken separately from annual paid vacation
• Length-of-service compensation program
• Congratulatory/condolence payment program
• Cooperating with welfare service providers
• Flex hours, etc.

●Employee health management

As part of initiatives to promote health-focused management, a monthly survey aimed at monitoring employees' individual health has been conducted since May 2024. Along with the survey results, self-care content and other useful resources are provided to support employees' well-being.

Communication with Employees

JHRA pursues a two-way dialogue between management and employees on matters such as working styles and strives to create job satisfaction and make work more pleasant.

●Implementation of employee satisfaction surveys

In order to build a more positive relationship between management and employees, we conduct an employee satisfaction survey of all employees once a year (surveys are conducted by an external organization once every three years). Based on the survey results, we examine and implement measures for improvement. Furthermore, we strive to become a better company by facilitating bi-directional communication between management and employees, which includes using employee suggestions for enhancements gathered during workshops.

＜Latest response rate＞

• FY2023: 100%
• FY2024:   80%

＜Measures taken based on survey results＞

• Company-wide introduction of system applications to improve work efficiency
• Provision of laptops for working from home, portable equipment for business trips, etc.
• Establishment of internal award system
• Implementation of rank-based training, etc.

●Target management and personnel evaluation process

Superiors and their subordinates together review the status of the targets set by employees at the start of the fiscal year and their performance during the year through regular communication. At the end of the year, employees' achievement of their targets, performance, and use of their skills are reviewed and a follow-up meeting is held. We have instituted a PDCA process to develop the capabilities of our employees. In this process, we share improvement issues through interviews, exchange ideas to move to the next step, and set goals for the next year and the medium to long term. Moreover, in the process, all employees set ESG-related targets. Under this process, we will implement fair personnel evaluations and ensure employees are treated and assigned appropriately. In principle, these evaluations are reflected in the year-end bonuses for all employees and in the salary scales for the next fiscal year.

●Individual meetings with top executive

As a venue for consultation and discussion about the details of individual employees' assignment, career plan, workplace-related concerns, etc., top executive holds one-on-one meetings with all employees once a year. Top executives listens to employees' voices and use them as a reference for the aim of supporting each employee's personal fulfillment and creating a more pleasant work environment.

Basic Employee Data

Basic data on JHRA's employees is shown below.

●Data related to employees (as of the end of each fiscal year)^(*1)