[Delayed]Supplementary Explanatory Material: Notice Concerning Issuance of New Investment Units and Acquisition of Domestic Real Estate

Supplementary Explanatory Materials: Press Releases Issued on June 15, 2022

"Notice Concerning Issuance of New Investment Units and Secondary Offering of Investment Units"

"Notice Concerning Acquisition and Lease of Domestic Real Estate (HOSHINOYA Okinawa (77.47% co-ownership))"

Securities Code: 3287

https://www.hoshinoresorts-reit.com/en/

Asset Management Company:

Hoshino Resort Asset Management Co., Ltd.

June 15, 2022

This document contains and organizes additional information pertaining to press releases "Notice Concerning Issuance of New Investment Units and Secondary Offering of Investment Units" and "Notice Concerning Acquisition and Lease of Domestic Real Estate (HOSHINOYA Okinawa (77.47% co-ownership))" dated June 15, 2022. For details of this public offering (defined on page 4), please refer to the "Notice Concerning Issuance of New Investment Units and Secondary Offering of Investment Units" dated June 15, 2022.

This document is not a disclosure document or asset management report based on the Financial Instruments and Exchange Act, the Act on Investment Trusts and Investment Corporations, the accompanying Cabinet Orders, Cabinet Office Ordinances and Regulations, and the Tokyo Stock Exchange Regulations. This document is provided for information purposes only and has not been prepared for the purpose of solicitation for investment. When making an investment, be sure to read the Prospectus for Issuance of New Investment Units and Sale of Investment Units prepared by Hoshino Resorts REIT, Inc. (hereinafter "HRR"), and corrections (if prepared) thereof, and please do so at your own risk and discretion. In addition, any information on the website of HRR (hereinafter the "Website") on which this document is posted and any information posted on a link destination of the posted material is not intended as a solicitation for investment, nor recommendation or invitation to make specific transactions offered by HRR.

The content of this document contains statements regarding HRR's strategies, targets, and forward-looking statements. Such forward-looking statements are based on information available to HRR and the asset management company Hoshino Resorts Asset Management Co., Ltd. (hereinafter the "Asset Management Company") as of the date of this document. The information is based on certain assumptions, premises and judgments made, and includes risks and uncertainties inherent in such statements, and is subject to such risks, uncertainties, assumptions and other factors. Therefore, such strategies, targets and forward-looking statements do not guarantee HRR's future performance, operating results, financial details, etc., and actual results may differ materially from future performance, operating results, financial details, etc. expressed or implied by the existence of such forward-looking statements. In addition, HRR does not guarantee or promise that these forward-looking statements will be achieved. Please refer to the "Accompanying notes" below for assumptions and premises regarding such forward-looking statements.

In addition, among the descriptions in this document, the audits based on Article 193-2-1 of the Financial Instruments and Exchange Act have not been completed for the figures for the 18th fiscal period (from November 1, 2021 to April 30, 2022) and thereafter (including the figures stated in the financial statements prepared in accordance with Article 129 of the Investment Trust Act for the 18th fiscal period).

This document contains charts and data, etc. created by the Asset Management Company based on information provided to HRR and the Asset Management Company from a third party or information published by the third party. It also contains the current analysis, judgment and other views of HRR and the Asset Management Company. There are differing views on these, and HRR and the Asset Management Company may change their views in the future.

Although every effort has been made to ensure the content of this document, HRR does not guarantee the accuracy, certainty, validity or fairness of the content. In addition, please note that the contents may be changed or abolished without prior notice.

The property photos shown in this document include some property photos of the assets owned and planned to be acquired by HRR as of the date of this

document. However, HRR may dispose of its owned assets and assets to be acquired by selling them to a third party or by other means, and it may not continue to own them. In addition, HRR may not always be able to acquire the assets to be acquired. This document also includes some photographs other than HRR's owned assets and assets to be acquired.

It is prohibited to copy or use the contents of this document for another purpose without the prior consent of HRR.

This document was created for use by residents of Japan and is not intended for residents of other countries.

REIT Securities Issuer: Hoshino Resorts REIT, Inc. (securities code: 3287)

Asset Management Company: Hoshino Resort Asset Management Co., Ltd.

(Financial instruments business operator, Director of Kanto Local Finance Bureau (Kin-sho) No. 2405, Member of the Investment Trusts Association, Japan)

Disclaimer

2

HRR is creating schemes to benefit from the growth of

Japan's tourism industry

（Note 4）

Investment Highlights

Aiming to achieve a medium-term target of 300 billion yen in

1 assets(Note 1), accelerated the growth phase with a view to increasing the ratio of properties operated by Hoshino Resorts Group(Note 2) to more than 50%

Realizing sustainable external growth by leveraging Hoshino

2 Resorts Group's growth cycle of "ownership," "operation," and "development"

3 Acquiring HOSHINOYA Okinawa, HRR's trophy asset(Note 3)

3

Investment Highlights (1): Aiming to achieve a medium-term target of 300 billion yen in assets, accelerated the growth phase with a view to increasing the ratio of properties operated by Hoshino Resorts Group to more than 50%

Outline of the public offering

HRR will aim for external growth that helps to increase investor value through acquisition of HOSHINOYA Okinawa, Hoshino Resorts Group's flagship brand (Note 1), and efficient financing backed by its good reputation in the capital market.

Outline of the public offering(Note 2)

 Assets to be acquired

Before

After

Aim of HRR

the PO(Note 11)

the PO(Note 12)

Property name

HOSHINOYA Okinawa

No. of properties

65properties

66properties

1.

To increase asset size and improve portfolio

Lessee and operator

Hoshino Resorts Group(Note 3)

quality by acquiring the newest property of

Asset size(Note 13)

176.8billion yen

189.0billion yen

"HOSHINOYA", Hoshino Resorts Group's

Picture of property

flagship brand

Ratio of properties

37.9%

42.0%

2. To improve the growth potential and

operated by Hoshino

stability of earnings by increasing the ratio

Resorts Group

of properties operated by Hoshino Resorts

Acquisition method(Note 4)

Sponsor pipeline(Note 5)

Group

Unitholders' capital

(DBJ joint fund development

(Note 4)

)

117.2billion yen

124.4billion yen

(Notes 14, 18)

Completion date(Note 6)

November 2019

3.

To increase NAV per unit through the public

(2 years and 7 months)

NAV per unit(Note 15)

537,090

545,214

offering at a firm investment unit price in

Planned acquisition date(Note 7)

July 1, 2022

yen

yen

addition to acquisition of property at a

Planned acquisition price(Note 8)

12,210 million yen

LTV(Notes 16,18)

35.5

%

36.2

%

reasonable price

Real estate appraisal

13,300 million yen

value(Note 9)

Acquisition

To real estate appraisal

91.8%

capability(Notes 17, 18)

14.3billion yen

12.9billion yen

value(Note 10)

Good reputation in the capital market under the COVID-19 pandemic(Note 19)

01-1 .Ch

• Investment unit price(Note 21) of HRR

and Hotel REITs (excluding HRR)(Note 20)

(Comparison of market capitalization-weighted average and TSE REIT Index)

(pt)

HRR Weighted average of hotel REITs (excluding HRR) TSE REIT Index

150

125	Acceleration of growth
phase
100

75

50

Inclusion in FTSE EPRA Nareit

25Global Real Estate Index Series(March 2021)

 Financing record through

A borrowing with a financing

borrowings

HRR's first green

period of 7.5 years with all

loan finance

major banks(Note 24) planned for

(Note 22)

(Apr/May 2022)

participation

(Note 23)

(July 2022)(Note 25)

Longest maturity

Average maturity

HRR's first issuance of

First renewal of

7.5

7.5

10-year green bonds

commitment line

7.2

(August 2021)

under the COVID-19

pandemic

(May 2021)

5.5

4.5 4.5

3.0

2.3

0
End of Dec. 2019	End of Jun. 2020	End of Dec. 2020	End of Jun. 2021	End of Dec. 2021 End of May 2022	Apr. 2021	June 2021	Oct. 2021	Apr./May 2022	July 1, 2022
Source: Prepared by the Asset Management Company, based on data from QUICK Corp.							(planned)

4

Investment Highlights (1): Aiming to achieve a medium-term target of 300 billion yen in assets, accelerated the growth phase with a view to increasing the ratio of properties operated by Hoshino Resorts Group to more than 50%

Active efforts promoted under the COVID-19 pandemic

HRR will continue to keep actively working for further growth, with the aim of achieving 300.0 billion yen in asset size and over 50% in the ratio of properties operated by Hoshino Resorts Group.

Trend of the asset size of HRR

02-1 .Ch

Ratio of properties operated by Hoshino
As of end of FP	Resorts Group
	After the PO
ended Oct. 2020
12.1%		42.0%
32.2%	16.8%
	8.5%
	5.1%	15.2%
	2.9%

2.3%	4.4%
1.3%
	2.4%
	1.9%
	1.1%
	1,656

Asset size （100 million yen）

Ratio of properties operated by the Hoshino Resorts Group

■HOSHINOYA			1,890
■ KAI			Compared with the end	)
■ RISONARE
	( of FP ended Oct. 2020
■ OMO		+27.3 billion yen
■Iriomote Hotel		+122
■ BEB
	1,768	▼
+112			42.0%
▼		(	Compared with the end	)
		of FP ended Oct. 2020
		+9.8 pt

Asset size

300.0 billion yen

(Medium-term goal)

Figure of over

50% for the

ratio of

properties

operated by

Hoshino Resorts Group is in sight

1,617	+10	1,627	+28	37.9%
			▼
32.2%	▼	32.6%		33.7%

FP ended Oct. 2020

FP ended Apr. 2021

FP ended Oct. 2021

FP ended Apr. 2022

Acquisition of

Capital increase through

Asset replacement

8th PO

property

third-party allotment

Assets acquired

Assets acquired

Assets transferred

Assets acquired

Assets acquired

Property

KAI Enshu

KAI Nagato

ANA Crowne Plaza

Grand Hyatt

KAI Kirishima

KAI Beppu

November 2, 2020

June 1, 2021

Fukuoka

June 1, 2021

Fukuoka

December 1, 2021

FP ended Oct. 2021

FP ended Apr. 2022

Extension of commitment

Capital increase

Issuance of green

Execution of refinancing

Execution of

through third-party

Execution of new

Finance

line agreement (5.0 billion

allotment

bonds

Up to 5.5 years

8thPO

refinancing(Note 4)

yen)

borrowing

Up to 7.5 years

Only hotel REIT to be set

Planned to increase

4.5 years

Term: 10 years

(Total amount:

Public Offering

same-boat

Total issue Value:

5.2 billion yen)

12.5 billion yen

(Total amount: 6.15

(Continuously set as of

(1.0 billion yen)

investment ratio

billion yen)

1.3 billion yen

June 15, 2022)

1.9 billion yen

After the PO

Public offering

Assets to be

acquired

HOSHINOYA Okinawa

July 1, 2022 (planned)

9th PO

Public offering

6.8 billion yen (planned)(Note 1)

Execution of new

borrowing

(planned)(Note 3) Up to 7.5 years (6.2 billion yen)

Target

Initiatives taken after the end of FP ended Oct. 2020

Acquisition of properties for four consecutive terms (planned)

Total (planned) acquisition price(Note 2): 34.9 billion yen

Sales price(Note 2): 7.7 billion yen Total trading price (planned)(Note 2): 42.6 billion yen

Equity financing for three consecutive terms (planned)

Total amount financed (planned)(Note 2): 21.6 billion yen

5