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Japan Hotel Reit Investment Corporation (JP:8985)
:8985
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Japan Hotel Reit Investment (8985) AI Stock Analysis

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Japan Hotel Reit Investment

(OTC:8985)

Rating:73Outperform
Price Target:
¥87,461.00
▲(9.05%Upside)
Japan Hotel Reit Investment scores well due to its strong financial performance and attractive valuation, marked by significant revenue growth and a solid dividend yield. However, technical indicators suggest caution due to overbought signals, which may lead to short-term volatility.

Japan Hotel Reit Investment (8985) vs. iShares MSCI Japan ETF (EWJ)

Japan Hotel Reit Investment Business Overview & Revenue Model

Company DescriptionJapan Hotel Reit Investment Corporation (JHR) is a real estate investment trust (REIT) based in Japan, specializing in the hospitality sector. The company primarily invests in hotel properties across Japan, seeking to generate stable income and long-term growth for its investors. JHR's portfolio includes a diverse range of hotels, from luxury to economy segments, strategically located in key urban and resort areas to capitalize on tourism and business travel demand.
How the Company Makes MoneyJapan Hotel Reit Investment Corporation generates revenue primarily through rental income from its hotel property portfolio. The company leases its hotel properties to operators who manage and run the hotels, paying JHR a fixed or variable rent based on the hotel's performance. This revenue model allows JHR to benefit from the tourism and hospitality industry's growth while mitigating operational risks. Additionally, JHR may engage in strategic partnerships with hotel operators and developers to enhance its property offerings and maximize returns. The company's earnings are influenced by factors such as occupancy rates, room rates, and overall tourism trends in Japan.

Japan Hotel Reit Investment Financial Statement Overview

Summary
Japan Hotel Reit Investment exhibits strong financial health with impressive revenue and profit growth, efficient cost management, and strong cash flow generation. The moderate leverage is manageable. Overall, the company is well-positioned in its industry.
Income Statement
85
Very Positive
The company demonstrated strong revenue growth with a significant increase in total revenue from 26.57 billion JPY in 2023 to 33.48 billion JPY in 2024, marking a growth rate of 26%. The gross profit margin improved to 63.5% in 2024, indicating efficient cost management. The net profit margin also increased to 54.6%, reflecting high profitability. Additionally, the EBIT and EBITDA margins are robust at 62% and 79.5%, respectively, showcasing strong operational efficiency.
Balance Sheet
78
Positive
The balance sheet indicates a strong equity position with a debt-to-equity ratio of 0.72, suggesting moderate leverage. The return on equity is impressive at 6.4%, highlighting effective utilization of shareholder funds. The equity ratio stands at 56.8%, reflecting a solid equity base and financial stability. However, the company's total debt has increased, which could pose a potential risk if not managed properly.
Cash Flow
80
Positive
The free cash flow growth rate was robust, turning positive in 2024 with 22.76 billion JPY from negative figures in the previous year, indicating improved cash generation. The operating cash flow to net income ratio is 1.25, illustrating strong cash flow generation relative to net income. Additionally, the free cash flow to net income ratio is 1.25, underscoring effective cash conversion. However, the high capital expenditures in previous years highlight a potential risk if the investment returns do not materialize.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue33.48B26.57B14.91B13.63B13.84B
Gross Profit21.24B15.40B6.12B4.80B5.12B
EBITDA26.63B15.01B9.14B7.82B7.94B
Net Income18.27B13.13B2.67B1.30B1.53B
Balance Sheet
Total Assets498.93B429.96B396.80B394.32B400.30B
Cash, Cash Equivalents and Short-Term Investments22.93B17.69B21.14B22.84B19.38B
Total Debt205.23B175.23B164.23B164.75B168.75B
Total Liabilities215.53B184.98B173.23B172.78B179.10B
Stockholders Equity283.40B244.98B223.57B221.54B221.20B
Cash Flow
Free Cash Flow-42.50B-20.85B1.41B7.99B10.81B
Operating Cash Flow22.76B17.78B5.33B11.68B13.75B
Investing Cash Flow-64.74B-38.55B-3.64B-4.70B-3.08B
Financing Cash Flow49.49B19.77B-2.17B-5.54B-16.46B

Japan Hotel Reit Investment Technical Analysis

Technical Analysis Sentiment
Positive
Last Price80200.00
Price Trends
50DMA
75782.00
Positive
100DMA
73209.00
Positive
200DMA
70432.88
Positive
Market Momentum
MACD
1254.70
Negative
RSI
71.31
Negative
STOCH
92.29
Negative
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 80200 is above the 20-day moving average (MA) of 77410.00, above the 50-day MA of 75782.00, and above the 200-day MA of 70432.88, indicating a bullish trend. The MACD of 1254.70 indicates Negative momentum. The RSI at 71.31 is Negative, neither overbought nor oversold. The STOCH value of 92.29 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (70)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥42.77B9.92
10.08%88.08%123.31%
76
Outperform
¥148.27B26.48
3.62%23.82%7.98%
76
Outperform
€497.78B16.718.51%8.90%29.48%25.62%
73
Outperform
$408.78B21.356.82%4.91%25.99%30.74%
72
Outperform
$377.76B23.415.84%16.58%44.54%5.60%
70
Outperform
¥232.09B14.4310.69%3.81%18.27%21.04%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8985
Japan Hotel Reit Investment
80,200.00
5,495.67
7.36%
JP:3287
Hoshino Resorts REIT, Inc.
253,100.00
1,684.25
0.67%
JP:3463
Ichigo Hotel REIT Investment Corp.
130,600.00
31,744.59
32.11%
JP:8963
Invincible Investment
65,100.00
2,842.97
4.57%
JP:8955
Japan Prime Realty Investment
95,800.00
18,451.61
23.86%

Japan Hotel Reit Investment Corporate Events

Japan Hotel REIT Announces Director Changes to Enhance Strategic Planning
Jul 9, 2025

Japan Hotel REIT Advisors Co., Ltd. has announced a change in its board of directors, with Noboru Itabashi set to be appointed as a new director, replacing Makoto Hanamura, who will transition to a new role as Strategic Planning Officer. This change, effective after the Extraordinary General Meeting on July 24, 2025, reflects the company’s ongoing efforts to strengthen its strategic planning capabilities and adapt its organizational structure to better meet future challenges.

The most recent analyst rating on (JP:8985) stock is a Buy with a Yen93000.00 price target. To see the full list of analyst forecasts on Japan Hotel Reit Investment stock, see the JP:8985 Stock Forecast page.

Japan Hotel REIT Reports Strong May 2025 Performance
Jun 25, 2025

Japan Hotel REIT Investment Corporation reported significant growth in its hotel operations for May 2025. The company’s 28 hotels with variable rent experienced a 20% year-on-year increase in RevPAR, driven by strong domestic and international leisure demand. Additionally, the food and beverage department saw a 14.7% rise in revenues, highlighting robust performance in banquets and restaurants. These results indicate a positive impact on JHR’s financial performance and suggest a strong market positioning in the hospitality sector.

The most recent analyst rating on (JP:8985) stock is a Buy with a Yen93000.00 price target. To see the full list of analyst forecasts on Japan Hotel Reit Investment stock, see the JP:8985 Stock Forecast page.

Japan Hotel REIT Reports Strong April Performance
May 23, 2025

Japan Hotel REIT Investment Corporation reported strong performance for April 2025, with a significant increase in revenue and occupancy rates across its portfolio of 28 hotels. The company’s RevPAR grew by 21.8% year-on-year, driven by high unit prices and increased demand, while the food and beverage department saw a 15.8% rise in revenues, indicating robust growth and a positive outlook for stakeholders.

The most recent analyst rating on (JP:8985) stock is a Buy with a Yen93000.00 price target. To see the full list of analyst forecasts on Japan Hotel Reit Investment stock, see the JP:8985 Stock Forecast page.

Japan Hotel REIT Reports Strong March 2025 Performance
Apr 25, 2025

Japan Hotel REIT Investment Corporation reported strong business performance for March 2025, with a 9.4% year-on-year increase in RevPAR for its 28 hotels with variable rent. The company also saw a 9.5% rise in food and beverage revenues, indicating robust demand in both domestic and international markets, enhancing its market position.

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.Date of analysis: Jun 18, 2025