HRR’s Strengths

Investment in hotels, ryokans and ancillary facilities

HRR invests in hotels, ryokans and ancillary facilities that serve at the core of the tourism industry and for which stable use is expected for the medium- to long-term. HRR particularly focuses investment in facilities that are expected to secure long-term and stable cash flow.

HRR makes continuous investments in hotels, ryokans and ancillary facilities operated by the Hoshino Resorts Group that satisfy the above investment policy. HRR aims to form a portfolio capable of securing stability of earnings by especially investing in three brands: “HOSHINOYA,” a core brand of the Hoshino Resorts Group that seeks to provide overwhelming extraordinary experiences and global standard services, “Hoshino Resorts KAI,” high-end onsen (hot spring) ryokans located in renowned hot spring destinations, and “Hoshino Resorts RISONARE,” operated under the concept of resort hotels enjoyed by both adults and children, as well as in other brands developed by the Hoshino Resorts Group.

HRR also makes proactive investment in hotels, ryokans and ancillary facilities operated by operators other than the Hoshino Resorts Group (properties operated by outside operators) if stable use is expected and they are likely to secure long-term and stable cash flow. Furthermore, regarding overseas hotels, ryokans and ancillary facilities, HRR seeks external growth while securing stability of earnings, by investing in properties which the Hoshino Resorts Group or entities, etc. in which Hoshino Resorts Group invests in (including those for which the Group takes a stake upon HRR’s investment) own and engage in the development or operation, or properties that are judged to meet such conditions after a certain period of time following acquisition by HRR.

Utilizing the expertise of the Hoshino Resorts Group

HRR aims for stable asset management while seeking to maintain the competitiveness of assets under management by fully utilizing the Hoshino Resorts Group’s extensive expertise on facility operations, as the Group has strived to expand business under the vision of “Hospitality Innovator” and also has raised its presence in the industry by differentiating itself from other companies due to its unique operating system.

  1. 1. Utilization of information

    HRR receives information from Hoshino Resort Co., Ltd on the tourism industry including information concerning purchases/sales/operations of facilities owned by the Hoshino Resorts Group. HRR believes that the Hoshino Resorts Group possesses unique know-how concerning candidate property assessment, acquisition operation preparation, and property risk analysis because of its wealth of experience in facility operation. HRR seeks to realize both external and internal growth by utilizing such information as provided by the Hoshino Resorts Group.

  2. 2. External growth

    Going forward, HRR intends on a continuing basis to acquire properties operated by the Hoshino Resorts Group and overseas properties in which the Hoshino Resorts Group is engaged by utilizing preferentially-provided property information and preferential negotiation rights based on the sponsor support agreement with Hoshino Resorts Inc. as well as agreements for joint investment with Hoshino Resorts Inc. and such.

  3. 3. Internal growth

    It is HRR’s intention to select an appropriate lessee or entrusted operator for each property. If applicable, HRR will, given its accumulated know-how and “facility operation” being defined as its main business field, choose the Hoshino Resorts Group as the managing assets’ lessee or entrusted operator. It will thus take full advantage of top-class operating skills in the hotel/ryokan industry as possessed by the Hoshino Resorts Group.

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Three brands operated by the Hoshino Resorts Group in which HRR makes continuous investments

  • “Escape from the present”

    HOSHINOYA is the core brand of the Hoshino Resorts Group and aims to provide overwhelming extraordinary experiences as a high-end Japanese style resort. HRR believes it is the brand which has strongly rooted the small luxury concept in the domestic resort market.

  • “Rediscover charms of the region at a quality hot spring inn with pleasant Japanese taste”

    Hoshino Resorts KAI is a premier hot spring ryokan located in renowned hot spring tourist destinations and is small in scale but high in quality. It aims to provide a special and comfortable stay with abundant charms of the region. It is a “hot spring inn,” a distinctive resort style found only in Japan.

  • “Western-style resort with sophisticated design and abundant activities”

    Hoshino Resorts RISONARE works under the concept of creating resort hotels that can be enjoyed by both adults and children. With its goal of offering an array of activities suitable for each season and attractive soothing time that can be only experienced at resorts, it aims to become a brand favored by families.

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Investment in properties operated by operators other than the Hoshino Resorts Group

By utilizing i) the unique networks of the Asset Management Company in the hotel/ryokan industry, ii) ability to assess operators’ operating skill, location and value of properties for acquisition as nurtured by the Asset Management Company’s officers and employees through HRR’s asset management and in engagement in hotel/ryokan business, iii) and information provided by the Hoshino Resorts Group, HRR intends to acquire hotel and ryokans that can secure long-term and stable cash flow with high profitability.

After the acquisition of properties operated by outsiders, if there is an operator who deeply understands HRR’s property features, possesses business models and know-how for the relevant properties, etc. and can possibly retain their stable cash flow, HRR may choose either to have that outside operator continue its involvement or select another outside operator. Even in this event, HRR aims for stable and efficient facility operation by the outside operator taking advantage of the operating know-how held by the Asset Management Company’s officers and employees. At the same time, HRR makes efforts to reduce risks concerning outside operators by preparing for the risk of said operators’ move-outs through the conclusion of a back-up operator agreement with the Hoshino Resorts Group when needed.

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Overseas properties in which the Hoshino Resorts Group is engaged

HRR invests in overseas hotels, ryokans and ancillary facilities that can expect stable use and secure long-term and stable cash flow and also meet the following conditions.

(1)
Properties which the Hoshino Resorts Group or entities, etc. in which Hoshino Resorts Group invests in (including those for which the Group takes a stake upon HRR’s investment) owns and engages in the development or operation of.
(2)
Properties that we judge to meet the above condition, after a certain period of time following acquisition by HRR.

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