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 on investments in facilities expected to secure long-term and stable cash flow.

Regarding hotels, ryokans and ancillary facilities operated by the Hoshino Resorts Group, HRR makes continuous investments mainly in, among the sub-brands operated by the Hoshino Resorts Group that satisfy the above investment policy, those under the brands HRR considers competitive (the “main brands”) (the “main brand properties”). The three brands that HRR considers as the main brands are “HOSHINOYA,” a flagship 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. HRR aims to form a portfolio capable of securing stability of earnings by continuously investing primarily in the main brand properties as well as in other properties operated by the Hoshino Resorts Group.

In addition, HRR aims to achieve external growth through proactive investments in hotels, ryokans and ancillary facilities operated by operators other than the Hoshino Resorts Group where stable use is expected alongside securement of long-term and stable cash flow, while securing stability of earnings.

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 and also has raised its presence in the industry by differentiating itself from other companies with 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 with its wealth of experience in facility operation. HRR seeks to achieve both external and internal growth by utilizing such information as provided by the Hoshino Resorts Group.

  2. 2. External growth

    Going forward, HRR intends to acquire properties with stable earning capabilities operated by the Hoshino Resorts Group by utilizing preferentially-provided property information and preferential negotiation rights based on the sponsor support agreement with Hoshino Resorts Inc. on a continuing basis.

  3. 3. Internal growth

    HRR intends to select an appropriate lessee or entrusted operator for each property. If applicable, HRR will choose the Hoshino Resorts Group as the managing assets’ lessee or entrusted operator, given its accumulated know-how and “facility operation” defined as its main business field. HRR will thus take full advantage of operating skills as possessed by the Hoshino Resorts Group.

▲ Page Top

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

  • “The quintessential resort experience”

  • “Destinations for blissful bathing and dining”

  • “Recreation, the art of creating anew”

▲ Page Top

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

HRR also makes proactive investments in hotels, ryokans and ancillary facilities operated by operators other than the Hoshino Resorts Group (“properties operated by outside operators”) where stable use is expected alongside securement of long-term and stable cash flow.

Specifically among the properties operated by outside operators, HRR discusses acquisition of hotels, ryokans and ancillary facilities that serve as urban tourism bases in which tourism needs that complement urban tourism are believed to exist (“urban tourism properties”) when it is judged that long-term and stable cash flow can be secured from the viewpoint of “superior know-how and experience” or “superior location and facilities” against the backdrop of urban tourism demand in cities where properties are located.

In addition, HRR will also discuss the acquisition of hotels, ryokans and ancillary facilities other than urban tourism properties (“other properties operated by outside operators”) in which non-urban tourism needs are believed to exist when it is judged that long-term and stable cash flow can be secured from the viewpoint of “superior know-how and experience” or “superior location and facilities.”

By utilizing i) unique networks of the Asset Management Company in the hotel/ryokan industry, ii) acquisition knowledge and experience regarding operating skills of operators, location and value of properties nurtured by the Asset Management Company’s employees through HRR’s asset management and in engagement in hotel/ryokan business (“ability to assess operating skills of operators, location and value of properties”), iii) and information provided by the Hoshino Resorts Group, HRR intends to acquire properties with strong earning capabilities operated by outside operators that can secure long-term and stable cash flow.

▲ Page Top

Overseas properties with 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 owned, developed or operated by the Hoshino Resorts Group or entities, etc. in which Hoshino Resorts Group invests (including those the Group assumes a stake in upon investment by HRR).
(2)
Properties that are judged to meet the above conditions after a certain period of time following acquisition by HRR.

▲ Page Top