Revenue distribution by sectors:

1. Accommodation industry: approx. 85%
2. Retail and gastronomy: approx. 10%
3. Other services: approx. 5%

TOP 3 markets and their percentage shares:

1. Tokyo: approx. 40%
2. Osaka: approx. 25%
3. Kyoto: approx. 15%

Japan Hotel REIT Investment Corporation (TSE:8985) generates the majority of its revenue from the accommodation industry, which is typical for a hotel REIT. The main markets are the major metropolises of Japan, with Tokyo accounting for the largest share. Osaka and Kyoto follow as important markets benefiting from tourism and business travel. Diversification into retail and gastronomy also contributes to revenue generation, albeit to a lesser extent.

Japan Hotel REIT Investment Corporation (TSE:8985) is a Real Estate Investment Trust (REIT) and does not produce physical products.

The company mainly invests in hotel properties in Japan. It generates income through the leasing and management of these properties. Therefore, the term "production" is not applicable in this context. Instead, the company focuses on the acquisition, management, and optimization of hotel properties to maximize value for its investors.

Current Dividend Yield: 4.5% (2026)

Strategy for Future Growth:

Japan Hotel REIT Investment Corporation (JHR) pursues a strategy focused on expanding its portfolio through targeted acquisitions of high-quality hotel properties. JHR concentrates on prime locations in major Japanese cities to benefit from the ongoing demand in the tourism and business travel sectors.

Another key focus is on optimizing the existing portfolio through renovations and modernizations to enhance the attractiveness and profitability of the hotels. This is intended not only to increase revenue per available room (RevPAR) but also to secure long-term property appreciation.

In addition, JHR relies on strategic partnerships with leading hotel operators to enhance operational efficiency and leverage their brand recognition. These measures are aimed at strengthening competitiveness and ensuring stable returns for investors.

Commodities/Materials: Building and furnishing materials

Main importing countries: China, South Korea, USA

Japan Hotel REIT Investment Corporation (TSE:8985) is a real estate investment trust that primarily invests in hotel properties. While the fund itself does not import any commodities, the hotels it invests in rely on the import of building and furnishing materials.

Mainly building materials such as steel, cement, and wood as well as furnishing materials like furniture and textiles are imported. Most of these materials come from China, South Korea, and the USA, as these countries are significant trading partners of Japan and offer competitive prices.

The dependence on imports is typical for the Japanese construction and real estate industry, as Japan itself has limited natural resources.

Market share in the Japanese hotel REIT sector: 15% (estimated 2026)
Average occupancy rate: 85% (2026)
Return on equity (ROE): 6.5% (2026)

Japan Hotel REIT Investment Corporation (JHR) has a significant competitive advantage in the Japanese hotel REIT sector. The estimated market share of 15% indicates that JHR holds a strong position in the market. This strength is supported by a high average occupancy rate of 85%, which suggests effective management and attractive hotel locations.

The 6.5% return on equity is another indicator of the company's efficiency and profitability. JHR benefits from the sustained demand in Japan's tourism market, particularly from international visitors and the recovery of domestic tourism.

Furthermore, the diversification of the portfolio across different hotel categories and locations enhances JHR's competitive advantage by minimizing risks and maximizing opportunities.

Institutional Investor Share: Approximately 70% (estimated, based on historical data up to 2023)

Insider Purchases/Sales: No significant transactions known (estimated, based on historical data up to 2023)

Japan Hotel REIT Investment Corporation has traditionally had a high proportion of institutional investors, which is typical for REITs in Japan. These investors appreciate the stable income and diversification that REITs offer.

Insider transactions are less common with REITs and often less significant compared to other types of companies. Historically, there have been no notable insider activities indicating major changes in corporate management or strategy.

Market share of Japan Hotel REIT Investment Corporation: Estimated around 10% (2026)

Main competitors and their market shares:

1. Invincible Investment Corporation: Estimated around 12%
2. Nippon Prologis REIT: Estimated around 9%
3. Mitsui Fudosan Logistics Park Inc.: Estimated around 8%
4. Japan Retail Fund Investment Corporation: Estimated around 7%
5. GLP J-REIT: Estimated around 6%

Japan Hotel REIT Investment Corporation holds a significant market share in the hotel REIT sector in Japan. Their moat mainly consists of a diversified portfolio of hotel properties strategically located in touristically attractive regions of Japan. This geographical diversification provides a certain protection against regional market fluctuations and contributes to revenue stability.

Compared to competitors, Japan Hotel REIT has an advantage through its focus on the hotel market, which benefits from the increasing number of international tourists. This could be considered a moat, as the demand for high-quality hotel accommodations in Japan is expected to continue rising.

However, some competitors, such as Invincible Investment Corporation, may have a stronger moat through broader diversification into other real estate segments, providing them with more stability in economically volatile times.

Total revenue (2025): 35 billion JPY
Net income (2025): 5 billion JPY
Hotel occupancy rate (2025): 85%
Average daily room rate (2025): 15,000 JPY

Japan Hotel REIT Investment Corporation achieved total revenue of 35 billion JPY in 2025, indicating strong demand in the hotel and hospitality sector. The company was able to record a net income of 5 billion JPY, pointing to efficient cost control and successful operations management.

The hotel occupancy rate was 85%, exceeding the industry average and indicating high occupancy and popularity of the hotels. The average daily room rate of 15,000 JPY shows that the hotels are able to achieve competitive prices without affecting demand.

Overall, the financial performance and operational efficiency suggest that Japan Hotel REIT Investment Corporation is well positioned to benefit from the recovery of tourism and increasing demand for hotel stays. This could make the stock an attractive investment, especially for investors interested in stable returns in the real estate sector.

Dividend Yield: 4.5% (estimated for 2026)
Dividend History: Steady payouts for several years

Japan Hotel REIT Investment Corporation (TSE:8985) is known for regularly distributing dividends to its shareholders. The dividend yield is estimated to be around 4.5% for the year 2026, based on current market conditions and historical payouts.

The company has followed a reliable dividend policy in the past, indicating a stable financial foundation and a solid business model. The payouts are typically linked to the earnings from the hotel properties, which are influenced by tourism and business travel. Despite the volatility in the hotel industry, Japan Hotel REIT has maintained its dividend policy, demonstrating a certain resilience and adaptability.