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Let’s look at the hotel operation status on the slide 17.
We lease certain spaces for hotel purposes at three of our properties, namely Tokyu Plaza Akasaka, A-FLAG SAPPORO and Kobe Kyu Kyoryuchi 25Bankan.
Hotels in Akasaka and Sapporo are operated by Tokyu Hotels which have 52 facilities under operation, and hotel in Kobe is operated by Plan Do See which operates 14 hotels and wedding venues inside and outside of Japan.
Both are with extensive experiences in hotel operation and continue to grow firmly.
Next, I would like to explain hotel operation status shown on the right side.
Our three hotels were firmly managed until January, though from February impact from COVID-19 became gradually significant, and in April and May when a state of emergency declared, and as a result of that society nationwide refrained from various activities, both occupancy and RevPAR year-on-year fall to single digit.
Although sales from foreign tourists account for only 14% on average of three hotels and a major part of earnings comes from domestic guests who are starting to come back, we consider that return of foreign tourists is essential to secure hotel growth.
As for sales-linked rent, the portion earned in the hotel in Kobe amounted to ￥60.8 million is recorded as revenue for the period under review. And for the FP18 ending November 2020, the portion earned in hotels in Akasaka and in Sapporo will be recorded which is expected to be ￥185.6 million in total.
As sales-linked rent at hotels is attributable to the annual revenue of each hotel and recorded once a year (Kobe for the odd-numbered period, Akasaka and Sapporo for the even-numbered period), for the period ending May 2021, revenue from sales-linked rent is estimated to zero since the operation during attributable period has been hardly hit by COVID-19.
Lastly, please look at topic three on the bottom.
In March, we have concluded a new lease contract with Tokyu Hotels for our hotel in Sapporo with an effective date on November 2021.
In this new contract, we increased fixed-rent portion while keeping the rent structure comprised of fixed-rent portion and sales-linked portion where we can expect upside, which allows us to earn extended revenue even when there is no sales-linked rent occurred.
Please turn to the next slide.
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