Japan Hotel REIT Investment Corporation Secures JPY 4.9 Billion Loan From Mizuho Bank, Sumitomo Mitsui and MUFG Bank for Hilton Tokyo Odaiba Renovation

TOKYO — Japan Hotel REIT Investment Corporation (TSE: 8985) has closed a JPY 4.9 billion term loan with Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation and MUFG Bank, Ltd. to partially fund capital expenditures for the renovation of Hilton Tokyo Odaiba, the Tokyo Stock Exchange-listed hotel real estate investment trust announced September 17, 2026.

The new borrowing, designated Term Loan 136, carries a floating interest rate of one-month JBA Japanese Yen TIBOR plus 0.30% and matures September 28, 2029. The loan is unsecured and unguaranteed, with principal due in a lump sum at maturity. Japan Hotel REIT Investment Corporation said it plans to enter into interest rate swap contracts to fix the rate, with details to be disclosed once finalized.

Hilton Tokyo Odaiba Renovation Drives New Financing

Hilton Tokyo Odaiba, a 453-room full-service waterfront hotel located at 1-9-1 Daiba, Minato-ku, Tokyo, is the subject of a renovation program running from February 2026 through December 2027. The property sits on a land area of 18,825.30 square meters and encompasses 64,907.76 square meters of total floor space across 14 stories above ground and one below.

The total renovation budget for the property stands at JPY 10.8 billion, comprising two capital expenditure phases. Japan Hotel REIT Investment Corporation has projected an annual net income uplift of JPY 480 million upon completion of the renovation program. The JPY 4.9 billion Term Loan 136 represents partial funding for those capital expenditures.

Japan Hotel REIT Investment Corporation acquired Hilton Tokyo Odaiba at an anticipated acquisition price of JPY 62.4 billion, against an appraisal value of JPY 65.8 billion at the time of acquisition. The current renovation program represents an injection of approximately 17% of the original purchase price into the asset's repositioning.

Green Loan Refinancing Extends Maturities on Three Hotel Properties

Alongside the new capex loan, Japan Hotel REIT Investment Corporation simultaneously executed refinancing of JPY 4,950 million in existing loans that matured September 30, 2026. The refinancing package consists of two tranches.

Term Loan 134, totaling JPY 4,250 million, was arranged with Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., SBI Shinsei Bank, Limited and Resona Bank, Limited. This tranche was structured as a green loan under Japan Hotel REIT Investment Corporation's Green Finance Framework, originally formulated in January 2024 and revised in August 2024. Proceeds are designated to refinance borrowings tied to the acquisition of Hilton Tokyo Narita Airport, International Garden Hotel Narita and Hotel Nikko Nara — all of which meet the framework's eligibility criteria as green buildings.

Term Loan 135, totaling JPY 700 million, was arranged with MUFG Bank, Ltd., Aozora Bank, Ltd. and Kansai Mirai Bank, Limited. Both refinancing tranches carry a rate of one-month JBA Japanese Yen TIBOR plus 0.45% and mature September 30, 2032, extending the debt maturity by six years from the loans they replace. Both are unsecured and unguaranteed, with bullet repayment at maturity.

The loans being refinanced — Term Loan 35, originally borrowed August 1, 2017, and Term Loan 86, originally borrowed September 27, 2023 — carried a combined balance of JPY 4,950 million prior to repayment.

Capital Structure Impact and Fixed-Rate Positioning

Following the new loan and the refinancing, Japan Hotel REIT Investment Corporation's total long-term loans increase from JPY 303.601 billion to JPY 308.501 billion, a net addition of JPY 4.9 billion. Total interest-bearing debt rises from JPY 334.301 billion to JPY 339.201 billion, with investment corporation bonds remaining unchanged at JPY 30.7 billion.

The trust said its fixed interest rate ratio relative to total interest-bearing debt is expected to reach approximately 79% after the transactions close, reflecting the planned interest rate swap contracts on both the new loan and the refinancing tranches.

Japan Hotel REIT Investment Corporation's executive director is Kaname Masuda. The trust is managed by Japan Hotel REIT Advisors Co., Ltd., led by president and CEO Hiroyuki Aoki. Corporate inquiries are handled by Noboru Itabashi, director of the board, managing director and head of corporate division.

Market Context: Tokyo Upscale Hotels Prioritize Rate Growth

Tokyo's upscale and luxury hotel segment has seen strong average daily rate growth in recent periods, with operators prioritizing rate over occupancy levels. Luxury hotel occupancy in Tokyo stood at approximately 75% in the second quarter of 2026, a dynamic that supports capital investment in flagship properties positioned to command higher room rates upon renovation completion.

Hilton Tokyo Odaiba's waterfront location in the Odaiba submarket — a Tokyo Bay leisure, wedding and meetings, incentives, conferences and exhibitions destination — gives the property a degree of scarcity value that Japan Hotel REIT Investment Corporation has cited in its rationale for the renovation program.

Japan Hotel REIT Investment Corporation noted in its announcement that there are no material changes to the investment risks related to the new loan and the refinancing from those described in the securities report filed March 24, 2026 and the semi-annual securities report submitted on the same date as the announcement.

Sources

Japan Hotel REIT Investment Corporation — Notice Concerning New Loans (Including Refinancing with Green Loan), September 17, 2026