MORI TRUST Hotel Reit : Notice Concerning Revisions to Forecast of Management Status and Distributions for Fiscal Period Ending August 2021

August 27, 2021

For Immediate Release

Real Estate Investment Trust Securities Issuer

MORI TRUST Hotel Reit, Inc.

Representative: Amane Sakamoto, Executive Director

(Securities Code: 3478)

Asset Management Company

MORI TRUST Asset Management Co., Ltd.

Representative:	Michio Yamamoto,
	President and Representative Director
Contact:	Nobuyuki Aizawa, General Manager,
	Strategic Management Department,
	Hotel REIT Management Division
	(TEL: [phone])

Notice Concerning Revisions to Forecast of Management Status and Distributions

for Fiscal Period Ending August 2021

MORI TRUST Hotel Reit, Inc. ("MORI TRUST Hotel Reit") hereby announces today that it has revised the forecast of management status and distributions for the fiscal period ending August 2021 (March 1, 2021 to August 31, 2021) announced in "Notice Concerning Revisions to Forecast of Management Status for Fiscal Period Ending August 2021" dated June 25, 2021.

Details

1. Revisions to Management Status Forecast and Distributions for Fiscal Period Ending August 2021 (March 1, 2021 to August 31, 2021)

					Distributions per	Distributions in
	Operating	Operating	Ordinary	Net	Unit (excluding	Excess of
	Revenue	Income	Income	Income	distributions in	Earnings
					excess of earnings)	per Unit
	million yen	million yen	million yen	million yen	yen	yen
Previously
released forecast	1,849	1,046	937	936	1,874	-
(A)
Revised forecast	2,110	1,313	1,204	1,203	2,408	-
(B)
Change	261	266	267	267	534	-
(B-A)
Percentage of	14.1%	25.5%	28.5%	28.5%	28.5%	- %
change
(Reference)
Results for the	1,770	988	881	880	1,761	-
fiscal period ended
August 2020

Disclaimer: This document is an English translation of a press release for public announcement concerning revisions to forecast of management status for fiscal period ending August 2021, and has not been prepared for the purpose of solicitation of investment.

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(Reference)

Fiscal period ending August 2021

Forecast number of investment units issued and outstanding at end of period: 500,000 units

Forecast net income per unit: 2,407 yen

(Note 1) The forecast of management status for fiscal period ending August 2021 represents the current figures calculated based on the assumptions stated in Attachment 1 "Assumptions Underlying Forecast of Management Status for Fiscal Period Ending August 2021." Accordingly, the actual operating revenues, operating income, ordinary income, net income and distributions per unit (excluding distributions in excess of earnings) may vary as a result of differences between actual conditions and the assumptions due to developments such as future additional acquisition or sale of real estate, etc., fluctuation in rent income as a result of changes in tenants or other factors, the occurrence of unforeseen repairs and maintenance and other changes in the management environment, fluctuation in interest rates, and the issuance of new investment units. Consequently, the forecast is not a guarantee of the amount of distributions.

(Note 2) The forecast may be revised in the event discrepancies exceeding a certain level from the forecast above are expected.

(Note 3) Figures are rounded down to the nearest specified unit.

2. Reasons for the Revisions

• Due to the partial sale of Courtyard by Marriott Tokyo Station (5.5% quasi-co-ownership interest), it is expected to obtain capital gain on sale of real estate in the fiscal period ending August 2021 (from March 1, 2021 to August 31, 2021) of MORI TRUST Hotel Reit.

  Accordingly, regarding the management status forecast for the fiscal period ending August 31, 2021, which was announced in the "Notice Concerning Revision of Management Status Forecast for the Fiscal Period Ending August 31, 2021" dated June 25, 2021, there has been a change in the assumptions for the forecast, and it is expected that there will be a difference of 10% or more in operating revenue and 5% or more in distributions per unit. As a result, the management status forecast has been revised.

• MORI TRUST Hotel Reit's website: http://www.mt-hotelreit.jp/en/

Disclaimer: This document is an English translation of a press release for public announcement concerning revisions to forecast of management status for fiscal period ending August 2021, and has not been prepared for the purpose of solicitation of investment.

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[Attachment 1]

Assumptions Underlying Forecast of Management Status for Fiscal Period Ending August 2021

Item		Assumptions
Calculation	-	Fiscal period ending August 2021 (11th fiscal period): (from March 1, 2021 to August 31,
Period		2021) (184 days)
	-	The 5 properties are owned by MORI TRUST Hotel Reit as of today and the partial sale of
		Courtyard by Marriott Tokyo Station (5.5% quasi-co-ownership interest) is scheduled on
		August 31, 2021.
Assets under	-	The management status forecast is based on the assumption that there will be no change in
	the assets under management (acquisition of new property or disposal of portfolio
Management
	property, etc.) other than the above including the sale in the fiscal period ending August
		2021.
	-	In actual practice, a change may arise due to the acquisition of new property or the
		disposition of portfolio property, etc.
	-	As the result of the partial sale of Courtyard by Marriott Tokyo Station (5.5% quasi-co-
		ownership interest), recording gain on sale of real estate is expected to be 261 million yen
		in the fiscal period ending August 2021.
	-	Rental revenues, which are calculated on the basis of the lease agreements currently in
		force, taking into account such factors as market trends and property competitiveness, is
		expected to be 1,849 million yen in the fiscal period ending August 2021.
	-	Rent included in rental revenues are calculated based on the following assumptions.
		Variable rent is calculated mainly on the basis of management results in the previous year
		by the method set out in the lease agreement of each property, taking into consideration
Operating		factors for fluctuation such as recent hotel market conditions.
revenues		[Shangri-La Hotel, Tokyo]
		Variable rent in the fiscal period ending August 2021 (11th fiscal period): 362 million yen
		(Includes 11 million yen, the difference from the minimum annual guaranteed rent.)
		The variable rent for each month is amount calculated by multiplying the rent received
		from subtenant by tenant (hereinafter referred to as "subletting tenant rent" (see Note)) for
		a month three months before the month in question by 97%.
		(Note) "Subletting tenant rent" is calculated by multiplying total sales from the subtenant's hotel
		operations by a certain percentage. The percentage is not disclosed as the consent of the
		subtenant has not been obtained.

Disclaimer: This document is an English translation of a press release for public announcement concerning revisions to forecast of management status for fiscal period ending August 2021, and has not been prepared for the purpose of solicitation of investment.

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Item		Assumptions
	(Reference) Minimum annual guaranteed rent (from April each year to March the
		following year (see Note1)): 882,700,000 yen
	(Note1)	If the total amount of subletting tenant rent for the period from January to December each
		year is less than 910,000,000 yen (including if subletting tenant rent is not paid due to
		vacation by the subletting tenant, etc.), rent is calculated on the basis that the subletting
		tenant rent for the period is 910,000,000 yen (910,000,000 yen × 97% = 882,700,000 yen),
		and the difference (shortfall) between this amount and the total amount of rent from April
		to March the following year is paid, together with the rent for March the following year, no
		later than the last day of February the following year.
	(Note2)	There was a payment of difference (shortfall) between the minimum annual guaranteed
		rent and the total amount of rent at the end of February 2021 since the total amount of rent
		for the period from April 2020 to March 2021 did not reach 882,700,000, and there will be
		operating revenues of 11 million yen belonging to the fiscal period ending August 2021.
	[Hilton Odawara Resort & Spa]
	Variable rent in the fiscal period ending August 2021 (11th fiscal period): 159 million yen
	(Includes additional revenues of 2 million yen other than rent revenue which
	MORITRUST Hotel Reit receives from the lessee of Hilton Odawara Resort & Spa.)
	The monthly rent for March to August each year is the amount (not less than 0 yen)
	equivalent to one-twelfth of the amount obtained when the sum total of the hotel's base
	profit for the 12 months from January to December in the previous year is multiplied by
Operating	95%.
revenues	The monthly rent for September each year to February in the following year is the amount
	(not less than 0 yen) equivalent to one-twelfth of the amount obtained when the sum total
	of the hotel's base profit for July in the previous year to June in the year in question is
	multiplied by 95%.
	(Note)	"Base profit" refers to the amount obtained by the following formula.
		Base profit = The profit that the lessee earns from operating the hotel − The expenses that
		the lessee incurs from operating the hotel (the lessee's insurance expenses, etc.).

[Courtyard by Marriott Tokyo Station]

Variable rent in the fiscal period ending August 2021 (11th fiscal period): 276 million yen (Includes 262 million yen, the difference from the minimum annual guaranteed rent. Since the partial sale of this property is scheduled for August 31, 2021, there is no impact on the management status for the fiscal period ending August 2021 (11th fiscal period: from March 1, 2021 to August 31, 2021))

The variable rent for each month is amount (not less than 0 yen) calculated by multiplying adjusted operating income by facility (see Note) of the hotel for a month three months before the month in question by 90%.

(Note) "Adjusted operating income by facility" refers to sales from hotel operations less hotel operating expenses by department, unallocated operating expenses, fixed operating costs, and operating expenses of hotel operator allocated to head office (only expenses related to the hotel).

Disclaimer: This document is an English translation of a press release for public announcement concerning revisions to forecast of management status for fiscal period ending August 2021, and has not been prepared for the purpose of solicitation of investment.

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Item		Assumptions
	(Reference) Minimum annual guaranteed rent (from October each year to September the
		following year (see Note1): 310,000,000 yen
	(Note1)	If the total amount of rent for the period from October each year to September the
		following year is less than 310,000,000 yen, rent for the period in question is taken as
		310,000,000 yen, and the difference (shortfall) between this amount and the total amount
		of rent from October to September the following year is paid, together with the rent for
		September the following year, no later than the last day of August the following year.
	(Note 2)	It is assumed that there will be a payment of difference (shortfall) between the minimum
		annual guaranteed rent and the total amount of rent at the end of August 2021 since the
		total amount of rent for the period from October 2020 to September 2021 is not expected to
		exceed 310,000,000 yen, and that there will be operating revenues of 262 million yen
		belonging to the fiscal period ending August 2021.
	[Courtyard by Marriott Shin-Osaka Station]
	Variable rent in the fiscal period ending August 2021 (11th fiscal period): 397 million yen
	(Includes 385 million yen, the difference from the minimum annual guaranteed rent.)
	The variable rent for each month is amount (not less than 0 yen) calculated by multiplying
	adjusted operating income by facility (see Note) of the hotel for a month three months
	before the month in question by 90%.
Operating	(Note)	"Adjusted operating income by facility" refers to sales from hotel operations less hotel
Revenues		operating expenses by department, unallocated operating expenses, fixed operating costs,
		and operating expenses of hotel operator allocated to head office (only expenses related to
		the hotel). Only sales and expenses relating to the accommodation of general users of the
		hotel are included in the calculation of adjusted operating income by facility, in principle.
		Sales and expenses relating to the accommodation of guests who are members of Laforet
		Club of the tenant, MORI TRUST CO., LTD. food and beverages, parking facilities, etc. are
		not included.
	(Reference) Minimum annual guaranteed rent (from October each year to September the
		following year (see Note1): 460,000,000 yen
	(Note1)	If the total amount of rent for the period from October each year to September the
		following year is less than 460,000,000 yen, rent for the period in question is taken as
		460,000,000 yen, and the difference (shortfall) between this amount and the total amount
		of rent from October to September the following year is paid, together with the rent for
		September the following year, no later than the last day of August the following year.
	(Note2)	It is assumed that there will be a payment of difference (shortfall) between the minimum
		annual guaranteed rent and the total amount of rent at the end of August 2021 since the
		total amount of rent for the period from October 2020 to September 2021 is not expected to
		exceed 460,000,000 yen, and that there will be operating revenues of 385 million yen
		belonging to the fiscal period ending August 2021.

Disclaimer: This document is an English translation of a press release for public announcement concerning revisions to forecast of management status for fiscal period ending August 2021, and has not been prepared for the purpose of solicitation of investment.

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