ポラリス・ホールディングス（3010） – [Delayed]Polaris Executes Management Contract for 6 New Hotels 26% Increase in Hotel Rooms Under Management

FOR IMMEDIATE RELEASE April 28, 2022 Company Name: Polaris Holdings Co., Ltd. Representative: Atsuo Umeki, President and Representative Director Stock Listing: Tokyo Stock Exchange, Second Section Inquiries: Satoshi Hosono, Director and CFO（TEL:03-5822-3010） Stock Code: 3010 Polaris Executes Management Contract for 6 New Hotels 26% Increase in Hotel Rooms Under Management Polaris Holdings Co., Ltd. (hereinafter the “Company”) announced today that “KOKO Hotels Co., Ltd.” and “Fino Hotels Co., Ltd.”, a subsidiary of Polaris Holdings, executed the definitive hotel management contract (hereinafter the “Hotel Management Contract”) and will commence the management of the six hotels under Polaris Group’s KOKO HOTEL brand. In addition, the Board of Directors resolved to enter into a Revenue Guarantee Contract (hereinafter the “Revenue Guarantee Contract”) with affiliates of Star Asia Group, our sponsor group, to solidify minimum profitability related to the hotel operations of the six hotels. As a result of Polaris’ strong growth initiatives, this transaction will increase its hotels under management by +26% to 31 hotels with 5,706 rooms. Details are as follows: 1. Conclusion of the Hotel Management Contract (1) Background leading up to the Hotel Management Contract As stated in “Polaris to Operate 6 Additional Hotels” released on February 14, 2022, Polaris Group executed a Memorandum of Understanding regarding the Hotel Management and held discussions with Star Asia Group, the sponsor of Polaris Holdings, in anticipation of concluding a hotel management contract with respect to “Hotel Trusty Kanazawa Korinbo”, “Hotel Trusty Shinsaibashi”, “Hotel Trusty Nagoya Sakae”, “Hotel Trusty Premier Kumamoto”, “Hotel Trusty Premier Nihonbashi Hamacho” and “Hotel Trusty Kobe Kyukyoryuchi” (hereinafter referred to as the “Property Portfolio”). Polaris Group has now executed the definitive hotel management contract where Polaris Group will be the hotel operator for the Property Portfolio and will commence operations sequentially from the middle of June 2022. (2) Purpose if commencing operation of the property portfolio One of Polaris Group’s strategic growth strategies is to increase the number of hotels managed under fee-based hotel management contracts, which contributes to lowering the break-even point as well as generating sustainable earnings. With the opening of the six new hotels, Polaris Group will have a total of 31 hotels with 5,706 rooms under management. This represents an increase of approximately 26% in the number of rooms under management, which we believe will – 1 – further accelerate the realization of the growth strategy that Polaris Group is aggressively pursuing. The hotels that comprise the Property Portfolio are located in the center of major metropolitan areas including Tokyo, Osaka, and Nagoya, as well as major regional cities such as Kanazawa, Kumamoto, and Kobe. These hotels are in highly competitive locations and are well positioned in the markets they operate given the convenient locations for hotel guests to access to either top business or tourist attractions. With each hotel having an average of 200 rooms, Polaris has the ability to generate strong economies of scale by having highly efficient and profitable hotel management. This is expected to contribute to the realization of sustainable profit growth for Polaris Group. (3) Outline of the Portfolio 2022 2022 2022 Hotel Name Location Number scheduled of rooms opening date KOKO HOTEL Premier Kanazawa Korinbo 1-2-16Korinbo, 207 room Late June (i) (Formerly Hotel Trusty Kanazawa Korinbo) Kanazawa City, Ishikawa Osaka City, Osaka City, Aichi City, Kumamoto KOKO HOTEL Osaka Shinsaibashi 3-3-17 Minami-211 room Early July (ii) (Formerly Hotel Trusty Shinsaibashi) Senba, Chuo-ku, KOKO HOTEL Nagoya Sakae 3-15-21, Nishiki, 204 room Late June (iii) (Formerly Hotel Trusty Nagoya Sakae) Naka-ku, Nagoya KOKO HOTEL Premier Kumamoto 3-20 Sakura-machi, 205 room Middle June (iv) (Formerly Hotel Trusty Premier Kumamoto) Chuo-ku, Kumamoto 2022 KOKO HOTEL Premier Nihonbashi Hamacho 2-30-4, Hamacho, 223 room Early July (v) (Formerly Hotel Trusty Premier Nihonbashi Nihonbashi, Chuo-2022 Hamacho) ku, Tokyo KOKO HOTEL Kobe Sannomiya 63 Naniwa-cho, 141 room Middle July (vi) (Formerly Hotel Trusty Kobe Chuo-ku, KobeCity, 2022 Kyukyoryuchi) Hyogo Total 1,191 room (4) Date of agreement Date of agreement April 28, 2022 (5) Outline of counterparty (i) KOKO HOTEL Premier Kanazawa Korinbo (operated by KOKO Hotels) (i) Name (ii) Address (iii) Date of incorporation Kanazawa Hotel Unei GK 5-1-4, Toranomon, Minato-ku, Tokyo March 2, 2022 (iv) Outline of Managing Partner Name Address Positions and names of Managing Member Mon Talisman General Incorporated Association 5-1-4, Toranomon, Minato-ku, Tokyo Representative MemberMon Talisman General Incorporated Association – 2 – (ii) KOKO HOTEL Osaka Shinsaibashi (operated by KOKO Hotels) (i) Name (ii) Address (iii) Date of incorporation Shinsaibashi Hotel Unei GK 5-1-4, Toranomon, Minato-ku, Tokyo March 2, 2022 representatives Business descriptions Capital relationship Human relationship Business relationship Whether this company is a related party Name Address Positions and names of representatives Business descriptions Capital relationship Human relationship Business relationship Whether this company is a related party Name Address Positions and names of representatives Business descriptions Capital relationship Human relationship Business relationship Whether this company is a related party (v) Relationship between the listed company and the fund (iv) Outline of Managing Partner (v) Relationship between the listed company and the fund (iv) Outline of Managing Partner (v) Relationship between the listed company and the fund Services including the acquisition, holding and disposal of shares, specified equity, equity and other interests There are no relationships worthy of special mention. There are no relationships worthy of special mention. There are no relationships worthy of special mention. There are no relationships worthy of special mention. Managing Member Mon Talisman General Incorporated Association 5-1-4, Toranomon, Minato-ku, Tokyo Representative Member Mon Talisman General Incorporated Association Services including the acquisition, holding and disposal of shares, specified equity, equity and other interests There are no relationships worthy of special mention. There are no relationships worthy of special mention. There are no relationships worthy of special mention. There are no relationships worthy of special mention. Managing Member Mon Talisman General Incorporated Association 5-1-4, Toranomon, Minato-ku, Tokyo Representative Member Mon Talisman General Incorporated Association Services including the acquisition, holding and disposal of shares, specified equity, equity and other interests There are no relationships worthy of special mention. There are no relationships worthy of special mention. There are no relationships worthy of special mention. There are no relationships worthy of special mention. – 3 – (iii) KOKO HOTEL Nagoya Sakae (operated by KOKO Hotels) Nagoya Sakae Hotel Unei GK 5-1-4, Toranomon, Minato-ku, Tokyo March 2, 2022 (i) Name (ii) Address (iii) Date of incorporation (vi) KOKO HOTEL Premier Kumamoto (operated by KOKO Hotels) (i) Name (ii) Address (iii) Date of incorporation Kumamoto Hotel Unei GK 5-1-4, Toranomon, Minato-ku, Tokyo March 2, 2022 (iv) Outline of Managing Partner (v) Relationship between the listed company and the fund (iv) Outline of Managing Partner (v) Relationship between the listed company and the fund Name Address Positions and names of representatives Business descriptions Capital relationship Human relationship Business relationship Whether this company is a related party Address Positions and names of representatives Business descriptions Capital relationship Human relationship Business relationship Whether this company is a related party Managing Member Mon Talisman General Incorporated Association 5-1-4, Toranomon, Minato-ku, Tokyo Representative Member Mon Talisman General Incorporated Association Services including the acquisition, holding and disposal of shares, specified equity, equity and other interests There are no relationships worthy of special mention. There are no relationships worthy of special mention. There are no relationships worthy of special mention. There are no relationships worthy of special mention. Hamacho Kobe Unei General Incorporated Association 5-1-4, Toranomon, Minato-ku, Tokyo Representative Member Hamacho Kobe Unei General Incorporated Association Services including the acquisition, holding and disposal of shares, specified equity, equity and other interests There are no relationships worthy of special mention. There are no relationships worthy of special mention. There are no relationships worthy of special mention. There are no relationships worthy of special mention. (v) KOKO HOTEL Premier Nihonbashi Hamacho (operated by Fino Hotels) (i) Name (ii) Address (iii) Date of incorporation KOKO HOTEL Nihonbashi Hamacho GK 5-1-4, Toranomon, Minato-ku, Tokyo February 25, 2022 Name (vi) KOKO HOTEL Kobe Sannomiya (operated by Fino Hotels) (i) Name (ii) Address (iii) Date of incorporation KOKO HOTEL Kobe Sannomiya GK 5-1-4, Toranomon, Minato-ku, Tokyo February 25, 2022 Name (iv) Outline of Managing Partner Address Positions and names of representatives – 4 – Hamacho Kobe Unei General Incorporated Association 5-1-4, Toranomon, Minato-ku, Tokyo Representative Member Hamacho Kobe Unei General Incorporated Association Business descriptions Capital relationship Human relationship Business relationship Whether this company is a related party Services including the acquisition, holding and disposal of shares, specified equity, equity and other interests There are no relationships worthy of special mention. There are no relationships worthy of special mention. There are no relationships worthy of special mention. There are no relationships worthy of special mention. (v) Relationship between the listed company and the fund 2. Execution of the Revenue Guarantee Contract (1) Details of the agreement KOKO Hotels and Fino Hotels concluded a Revenue Guarantee Contract with companies belonging to the Star Asia Group (hereinafter the “Guarantor Company”). In the situation where the spread of COVID-19 infection still has a large impact on hotel management and operations, the Revenue Guarantee Contract is critical in order to avoid losses related to hotel management, secure management consignment fees, and strengthen profits related to hotel management. Under the Revenue Guarantee Contract, the guarantee company will receive “Opening Preparation Funds” of 357 million yen from the Guarantor Company to KOKO Hotels or Fino Hotels as expenses such as outsourcing expenses related to opening preparations at the start of operation of each hotel, and the contract. It is stipulated that if the hotel sales in the hotel operation of the portfolio fall below the operating cost in each month of the period, a deposit to cover the operating cost and the management consignment fee will be paid. (2) Date of agreement (3) Outline of counterparty Date of agreement April 28, 2022 Company. 3. Outlook The Guarantor Company is an overseas company belonging to the Star Asia Group. Although there is no direct capital relationship between the Company and the Guarantor Company, the Guarantor Company is a related party of the The Group has decided to postpone disclosure of its consolidated forecast due to the current difficulty of reasonably forecasting the impact of the COVID-19 pandemic on the Group’s business activities for the fiscal year ending March 31, 2022. The Company will promptly announce forecasts as soon as disclosure becomes possible. NOTE: This is an English translation summary of the Company’s announcement in Japanese. No assurances or warranties are given for completeness or accuracy of this English translation summary. – 5 –