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Japan Hotel Reit Investment
(8985)
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Rating:63Neutral
Price Target:
¥85,946.00
▲(8.11% Upside)
Action:Downgraded
Date:03/04/26
The score is driven primarily by strong profitability and improved operating cash flow, but it is meaningfully constrained by persistently negative free cash flow and higher leverage. Technicals are weak with the price below key moving averages, while valuation is supported by a high dividend yield and a moderate P/E.
Positive Factors
Revenue Growth & Profitability
Accelerating revenue growth in 2025 (+11.6%) combined with very high gross and net margins indicates durable demand recovery and operational leverage across the hotel portfolio. Sustained improvements in occupancy and rates support recurring lease and performance-linked income and underpin medium-term distribution capacity.
Negative Factors
Negative Free Cash Flow
Deeply negative free cash flow over 2023–2025 (2025 ~-38.8B) indicates significant outflows from capex, acquisitions, or financing that offset operating cash gains. Persistent negative FCF weakens financial flexibility, limits internal funding for growth or distributions, and raises reliance on external capital in adverse conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth & Profitability
Accelerating revenue growth in 2025 (+11.6%) combined with very high gross and net margins indicates durable demand recovery and operational leverage across the hotel portfolio. Sustained improvements in occupancy and rates support recurring lease and performance-linked income and underpin medium-term distribution capacity.
Read all positive factors
Japan Hotel Reit Investment (8985) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥469.47B
Dividend Yield4.54%
Average Volume (3M)18.82K
Price to Earnings (P/E)14.9
Beta (1Y)0.43
Revenue Growth36.09%
EPS Growth41.80%
CountryJP
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Hotel & Motel
Share Statistics
EPS (TTM)5325.69
Shares Outstanding5,942,715
10 Day Avg. Volume17,434
30 Day Avg. Volume18,819
Financial Highlights & Ratios
PEG Ratio0.37
Price to Book (P/B)1.42
Price to Sales (P/S)8.72
P/FCF Ratio-10.74
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)4,743.45
Revenue Forecast (FY)¥48.85B
Japan Hotel Reit Investment Business Overview & Revenue Model
Company Description
Japan Hotel REIT Investment Corporation (JHR) is a Japanese real estate investment trust that concentrates solely on hotel properties. Its fundamental approach to asset management is to ensure sustained growth and dependable income streams over th...
How the Company Makes Money
Japan Hotel REIT generates revenue primarily through rental income from its hotel properties. The company leases its hotels to experienced hotel operators who manage the day-to-day operations, allowing Japan Hotel REIT to earn a steady stream of i...
Japan Hotel Reit Investment Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
72
Positive
Cash Flow
43
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 47.83B | 33.48B | 26.57B | 14.91B | 13.63B |
| Gross Profit | 24.47B | 21.24B | 15.40B | 6.12B | 4.80B |
| EBITDA | 38.22B | 26.63B | 15.01B | 9.14B | 7.82B |
| Net Income | 27.15B | 18.27B | 13.13B | 2.67B | 1.30B |
Balance Sheet | |||||
| Total Assets | 576.68B | 498.93B | 429.96B | 396.80B | 394.32B |
| Cash, Cash Equivalents and Short-Term Investments | 41.98B | 22.93B | 17.69B | 29.52B | 22.84B |
| Total Debt | 269.38B | 205.23B | 175.23B | 164.23B | 164.75B |
| Total Liabilities | 283.57B | 215.53B | 184.98B | 173.23B | 172.78B |
| Stockholders Equity | 293.11B | 283.40B | 244.98B | 223.57B | 221.54B |
Cash Flow | |||||
| Free Cash Flow | -38.82B | -42.43B | -20.79B | 1.46B | 8.19B |
| Operating Cash Flow | 33.75B | 22.76B | 17.78B | 5.33B | 11.68B |
| Investing Cash Flow | -71.87B | -64.74B | -38.55B | -3.64B | -4.70B |
| Financing Cash Flow | 44.07B | 49.49B | 19.77B | -2.17B | -5.54B |
Japan Hotel Reit Investment Technical Analysis
Positive
79500.00
Price Trends
77206.00
Positive
78806.00
Positive
80897.80
Negative
Market Momentum
701.26
Negative
56.58
Neutral
68.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8985, the sentiment is Positive. The current price of 79500 is above the 20-day moving average (MA) of 78265.00, above the 50-day MA of 77206.00, and below the 200-day MA of 80897.80, indicating a neutral trend. The MACD of 701.26 indicates Negative momentum. The RSI at 56.58 is Neutral, neither overbought nor oversold. The STOCH value of 68.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8985.
Japan Hotel Reit Investment Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | ¥73.48B | 5.38 | ― | ― | 93.14% | 254.99% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
63 Neutral | ¥469.47B | 14.87 | 9.29% | 4.54% | 36.09% | 41.80% | |
61 Neutral | ¥141.71B | 18.52 | ― | 4.18% | 44.46% | 34.92% | |
58 Neutral | ¥314.17B | 25.56 | ― | 3.56% | 6.93% | 7.40% | |
54 Neutral | ¥39.00B | 14.24 | ― | 11.36% | -19.18% | -36.63% |
* Real Estate Sector Average
JP:8985
Japan Hotel Reit Investment
79,200.00
5,476.13
7.43%
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Ichigo Hotel REIT Investment Corp.
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Nippon Hotel & Residential Investment Corporation
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JP:3479
TKP Corp
1,722.00
-234.00
-11.96%
Japan Hotel Reit Investment Corporate Events
Japan Hotel REIT Finalizes New Unit Issuance to Fund Hyatt Regency Tokyo Buy
Mar 4, 2026
Japan Hotel REIT Investment Corporation has confirmed that no additional investment units will be issued under the over-allotment option granted to overseas underwriters in its latest equity financing. The decision fixes the total number of new un...
Japan Hotel REIT Sets Terms for Equity Offering to Fund Hyatt Regency Tokyo Acquisition
Mar 3, 2026
Japan Hotel REIT Investment Corporation has set the terms for a large-scale issuance of new investment units and a secondary offering, totaling up to 848,991 new units through domestic and overseas offerings, with an additional 38,709 units to be ...
Japan Hotel REIT Sees Stable January Rooms, Strong F&B Amid China Travel Drag
Feb 25, 2026
Japan Hotel REIT Investment Corporation reported January 2026 operating metrics for 29 variable-rent hotels, showing stable room performance despite weaker Chinese travel demand. RevPAR was essentially flat year on year at ¥14,185 with a 79.7...
Japan Hotel REIT Delivers Strong 2025 Earnings and Lifts Dividend, Projects Further Growth for 2026
Feb 25, 2026
Japan Hotel REIT Investment Corporation reported strong results for the fiscal year ended December 31, 2025, with operating revenue rising 36.1% to ¥45.6 billion and net income climbing 48.6% to ¥27.1 billion, driven by improved profitab...
Japan Hotel REIT Secures ¥65bn in New Loans to Fund Hyatt Regency Tokyo Acquisition
Feb 25, 2026
Japan Hotel REIT Investment Corporation has approved a series of new unsecured, unguaranteed term loans totaling 65 billion yen from a syndicate of major domestic banks. The borrowings, with maturities ranging from 2027 to 2031 and interest rates ...
Japan Hotel REIT Lifts 2026 Forecasts as It Buys Hyatt Regency Tokyo and Issues New Units
Feb 25, 2026
Japan Hotel REIT Investment Corporation revised upward its operating forecasts for the fiscal year ending December 2026, reflecting stronger expected performance and the planned acquisition of Hyatt Regency Tokyo. The REIT now projects full-year o...
Japan Hotel REIT to Acquire Hyatt Regency Tokyo in Landmark ¥126 Billion Deal
Feb 25, 2026
Japan Hotel REIT Investment Corporation will acquire the trust beneficial interest and related movable assets of the Hyatt Regency Tokyo, a 712-room, 28-story full-service hotel in Shinjuku, for ¥126 billion on March 13, 2026, under a fixed a...
Japan Hotel REIT Plans Global Offering of Up to 848,991 New Units
Feb 25, 2026
Japan Hotel REIT Investment Corporation has approved the issuance of up to 848,991 new investment units through a global offering split between a domestic public sale in Japan and an overseas tranche targeted mainly at investors in the U.S., Europ...
Japan Hotel REIT Further Locks In Borrowing Costs With New Interest Rate Swap
Jan 28, 2026
Japan Hotel REIT Investment Corporation has entered into an interest rate swap agreement with Daiwa Securities for a ¥2.5 billion portion of its newly refinanced Term Loan 126, effectively fixing the interest rate on this borrowing at 2.51820...
Japan Hotel REIT Refinances Maturing Debt With New ¥2.5 Billion Loan
Jan 22, 2026
Japan Hotel REIT Investment Corporation has arranged a new long-term loan of ¥2.5 billion from Mizuho Bank, largely to refinance an existing ¥2.526 billion term loan maturing on January 30, 2026, with the balance to be repaid using cash ...
Japan Hotel REIT Posts Strong 2025 Hotel Performance and Sees Firm Demand in 2026
Jan 22, 2026
Japan Hotel REIT Investment Corporation reported strong operating results for December 2025 and for the full year across its 28 hotels with variable rent, driven by robust domestic and international leisure demand. Revenue per available room (RevP...
Japan Hotel REIT to Invest ¥10.8bn in Hilton Tokyo Odaiba Upgrade to Capture Luxury Demand
Jan 22, 2026
Japan Hotel REIT Investment Corporation has approved a large-scale renovation of the Hilton Tokyo Odaiba, a scarce, full-service four-star waterfront hotel in one of Tokyo’s prime tourist districts, to reposition the property closer to luxur...
Japan Hotel REIT Raises 2025 Outlook and Signals Higher Payouts in 2026 on Strong Travel Demand
Jan 22, 2026
Japan Hotel REIT Investment Corporation has revised upward its operating and dividend forecasts for the fiscal year ended December 2025, citing stronger-than-expected hotel performance driven by robust domestic travel and continued growth in inbou...
Japan Hotel REIT Posts Strong November on Robust Leisure Demand and Higher Room Rates
Dec 25, 2025
Japan Hotel REIT Investment Corporation reported strong operating results for November 2025 across its 28 variable-rent hotels, underlining robust demand in Japan’s hospitality market. Room operations continued to benefit from solid domestic...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.