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.)

Considering the Health and Safety of Local Communities

Initiatives to cope with COVID-19

• Provided 7 hotels to date as facilities for accommodation and care of patients
• Introducing automatic check-in machines as a countermeasure to COVID-19 (utilize DX – Digital Transformation)
• Providing vaccinations to officers and employees of HMJ Group hotels (including part-time and temporary staff) who want them, as well as their families
• Providing hotel banquet rooms as workplace vaccination sites and group vaccination sites
• Installing acrylic boards as a countermeasure for airborne droplets and installing automatic thermometers

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Supporting Cultural and Artistic Activities and Child-rearing in Local Communities

Preserving the Local Environment

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 Hotels

Improvements to Hotel Employees’ Work Environment

Introducing COVID-19 countermeasures and creating practical, relaxing back-of-house areas where employees can work comfortably.

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Initiatives for Employees

In order to maintain its professional expertise and continue performing stable asset management, JHRA believes it must be a company at 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, 2023)

●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 recent 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 matters including 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 check and vaccinations by these measures. Moreover, we implement a system that enables those who desire it to consult with 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 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 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.

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＞

• FY2022: 100%
• FY2023: 100%

＜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 mid- 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 principal, 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 hold one-on-one meetings with all employees once a year. Top executive listen 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)

Initiatives under Impact of COVID-19

The COVID-19 pandemic has significantly impacted daily life, social activities, and business, prompting reconsideration of how employees work and communicate. JHRA is striving to ensure employees’ safety and peace of mind in the context under the pandemic, and we have implemented various initiatives aimed at making work more flexible and comfortable.

●Implementing a flexible work system

Flexible work system, recommending staggered commuting times, setting and managing attendance rate, rotation system to work at office, establishing behavioral guidelines based on the pandemic situation, recommending online meetings, etc.

●Changing office specifications

Introducing an online meeting system for all conference rooms, practicing social distancing of seats while attending meetings, setting limits on the number of people using conference rooms, installing partitions, etc.

●Employee health management

Conducting regular PCR tests (voluntary), providing workplace vaccinations (voluntary), installing air purifiers and clinical thermometer, distributing infection prevention gear (e.g., disinfectant spray, masks) to all officers and employees, etc.

●Ensuring the well-being of working from home

Loaning laptops and cell phones, subsidizing the cost of buying monitors and headsets, etc.