Karaksa Hotel Was Initiated from the Desire to Build a Hotel

A new style of minimalist hotel, designed especially for tourists

“karaksa”

Since ancient times, the karakusa motif has been treasured as a symbol

of growth, prosperity and intangible bonds.

The corporate logo of the Xymax Group combines the karakusa motif

with the traditional Japanese tomoe and magatama designs to express

growth and development, as well as partnership and nobility of spirit.

The new karaksa hotel was initiated from the desire to build a hotel

brand that would be beloved across generations, as fresh and supple as

the karakusa arabesque itself.

1 The karaksa hotel concept is completely original.

In the pursuit of comfort and convenience for our guests,

our hotels have been designed specifically for tourists.

Room Rates Insuﬃcient hotel capacity to meet tourism demand

Luxury

High-end City and Resort Passenger Hotels Ships

Middle Ryokan （Japanese Inns）

Economy B&Bs Business Hotels Guesthouses Budget Vacation Rentals

Business, Tourism, Banquets, Weddings Tourism Demand Business Demand Other (non-hotel) Full Service Hotels Limited Service Hotels (hotels speciﬁcally for lodging)

2 Simple and stylish: The karaksa motif adds elegant flair to the hotel ambiance. Japanese modern spaces for relaxation

3 Guest rooms over 20㎡.

A variety of room Connecting rooms Connecting doors are equipped between types to suit travelers’ needs the majority of our guest rooms. Ideal for families and group travelers who require more space to enjoy their stay together.

In the connecting rooms, guests can use bathrooms in two locations, making them convenient for larger groups.

Twin rooms as karaksa standard

4 Separated restrooms and showers. Our simple yet Internet We offer a pleasant and fully equipped internet functional guest rooms are connection environment, with free Wi-Fi provided throughout the perfect for group use hotel and USB ports in the headboards of all guest rooms.

Bulky suitcases fit neatly under the bed. (TOKYO STATION, Kyoto, Osaka Shinsaibashi, Kansai AIr Gate) FREE Wi-Fi

Shower rooms A user-friendly design with shower rooms separated from sinks and toilets.

5 A breakfast buffet and our hotel facilities make your Restaurant Buffet-style breakfasts are provided in the bright, stay more comfortable open restaurant, which offers mainly western food. (Osaka Namba)

A pristine lobby greets guests upon arrival, with a design focused on unvarnished, natural wood.

The breakfast menu is labeled for those with allergies or religious dietary restrictions.

6 We provide a full range of services for foreign Front Over 40% of our staff are foreign nationals, and tourists we can accommodate 14 languages, including Japanese (as of November 2019).

Smartphones for guests allow free calls domestically and to over five countries overseas (Tokyo Ginza, TOKYO STATION).

A prayer room for Muslim guests (Osaka Shinsaibashi) and Qibla locators that show the direction of Mecca (Osaka Shinsaibashi and Kyoto) are provided. We have also introduced a system that All rooms are equipped with multi-outlet plug that are Copyright ⓒ KARAKSA HOTELS Corporation All Rights Reserved allows video calls to professional interpreters. compatible with appliances brought from overseas.

7 Launched in Osaka and Our rapid business expansion leverages the strengths of the Xymax Group. We offer optimal solutions for both conversions and new developments, Kyoto in March 2016. Our suited to individual landowners’ needs. hotel business is developing through various schemes

Number of New development Oﬃce / Commercial facility conversion guest rooms

karaksa hotel premier Tokyo Ginza karaksa hotel Kyoto I （Opened in May 2019) (Opened in March 2016)

karaksa hotel TOKYO STATION karaksa hotel Osaka Shinsaibashi I （Opened in July 2019) (Opened in March 2016)

★ Chiba karaksa Spring hotel Kansai Air Gate Owned / Operated 1,135 (Opening TBD) (Opened in January 2017)

Hokkaido (Opening TBD)

Osaka (Opening TBD)

Leased land / karaksa hotel Osaka Namba Building owned / 112 (Opened in November 2017) Operated

karaksa hotel Sapporo (Opened in January 2018)

karaksa hotel grande Shin-Osaka Tower （Opened in November 2019) Master lease / Operated 661 Tokyo (Opening TBD)

Tokyo (Opening TBD)

Number of 1,664 244 1,908 guest rooms

★Strategic partnerships through business alliance

8 Hotels developed and We are planning more hotels from 2020 onwards. operated throughout

Japan, with plans for Hokkaido continued expansion January 2018 177 rooms karaksa hotel Sapporo Osaka Opening TBD 140 rooms March 2016 69 rooms karaksa hotel Osaka Shinsaibashi I January 2017 139 rooms karaksa Spring hotel Kansai Air Gate November 2017 112 rooms karaksa hotel Osaka Namba November 2019 396 rooms karaksa hotel grande Shin-Osaka Tower Opening TBD 176 rooms

Kyoto March 2016 36 rooms karaksa hotel Kyoto I

karaksa hotels (Rooms) Number of guest rooms 2,000 1,908

1,500

1,137 Tokyo 1,000 May 2019 57 rooms karaksa hotel premier Tokyo Ginza July 2019 151 rooms karaksa hotel TOKYO STATION Opening TBD 103 rooms 500 533 Opening TBD 162 rooms Chiba 356 Opening TBD 190 rooms 105 0 In operation Opening scheduled 2016 2017 2018 2019 2020 onward (Year) Copyright ⓒ KARAKSA HOTELS Corporation All Rights Reserved

9 At karaksa hotels, Our karaksa hotel locations have excellent access to train stations and bus stops, and are close entertainment districts, like Susukino (Sapporo) or Dotonbori (Osaka). we provide convenience karaksa hotel Sapporo（177 rooms） and comfort for tourists

A perfect base for sightseeing, located near karaksa Hot Bath: Large and outdoor baths will soothe the Susukino and Odori Park. fatigue of your journey.

karaksa hotel TOKYO STATION（151 rooms） karaksa hotel Osaka Namba（112 rooms）

Copyright ⓒ KARAKSA HOTELS Corporation Great location—five minutes from Tokyo Station, Five minutes on foot from Dotonbori and All Rights Reserved with many bus terminals close by. Shinsaibashi-suji shopping street. 10 In 2019, a premium brand This hotel's concept is“Sharing precious moments with your loved ones.” Guest rooms mainly consist of twin rooms from 26 m2 to 43 m2, featuring large windows overlooking the Ginza district. This hotel was born in Ginza also features an exclusive free guest lounge.

karaksa hotel premier Tokyo Ginza（57 rooms）

In the free lounge, guests can enjoy a breakfast buffet as well as seasonal drinks and light dishes. Alcoholic beverages including wine are available from the self- service open bar in the evenings.

Specially designed Serta mattresses, wool mattress pads and heat-retaining duvets are all included for a guest experience Guests may also enjoy a relaxed in-room Copyright ⓒ KARAKSA HOTELS Corporation that's guaranteed to leave you refreshed. breakfast focused on Japanese umami-rich All Rights Reserved flavors.

11 karaksa hotel grande Just a five-minute walk from Shin-Osaka Station, this hotel is perfect for tourists traveling further afield, not just within Osaka, but to Kyoto, Nara, Kanazawa, Hiroshima and other destinations from their Shin-Osaka Tower is now karaksa hotel travel base. open with 396 rooms— karaksa hotel grande our largest hotel Shin-Osaka Tower（396 rooms）

The breakfast buffet features over 40 menu options, including local fare from Osaka and the surrounding area.

High floor guest rooms (15th floor up) and panorama floor The large hot baths are a great way to refresh after a long guest rooms (22nd floor up) feature breathtaking views. day of travel. The men's side has a dry sauna, while the There are also 160 connecting rooms, a popular option women's side has a steam sauna. Copyright ⓒ KARAKSA HOTELS Corporation for accommodating up to six people. All Rights Reserved

12 Ofﬁ ce and commercial We utilize idle real estate assets and revitalize them for hotel conversions, which led to karaksa hotel Kyoto I and karaksa hotel Osaka Shinsaibashi I. We have also converted a large roadside facility hotel conversion electronics store for karaksa Spring hotel Kansai Air Gate. examples karaksa hotel Kyoto Ⅰ（36 rooms） karaksa hotel Osaka Shinsaibashi Ⅰ（69 rooms）

▶

▶ Hotel entrance includes bamboo fencing and a rock garden for a uniquely Japanese feel.

Hotel exterior features a modern Japanese monochromatic look.

karaksa Spring hotel Kansai Air Gate（139 rooms）

This seven-meter tall single-story structure was converted into two fl oors with 139 guest rooms. Despite major ▶ construction, it was completed in nine months.

13 karaksa hotels We operate karaksa hotels throughout Japan, and have attained solid progress through our unique strategy of addressing the needs of a growing number of foreign tourists. by the numbers

Occupancy rates and length of stay Guest demographics for each hotel area

October 2018 to September 2019 October 2018 to September 2019 （％）客室稼働率・宿泊日数 100 America 2％ Sapporo Europe 1% Oceania 2% 90 Ginza opened (nights) Asia 79％ Japan 80 TOKYO STATION opened 3 Other 12％ 4% South Korea China Taiwan Hong Kong Southeast Asia 2 0 10 20 30 40 50 60 70 80 90 100（％） 1 0 10 11 12 1 2 3 4 5 6 7 8 9 Tokyo America 5％ Oceania 5% Length of stay（nights） Occupancy rates（％） Asia 43％ Europe Other Japan 20％ 15% 12% Average for all hotels China Taiwan Hong Kong ■ Occupancy rate: 90.0% 0 10 20 30 40 50 60 70 80 90 100（％） ■ Length of stay: 1.86 nights South Korea Southeast Asia The majority of our guests are foreign tourists, and we maintained steady high occupancy throughout the year. Kyoto America 3％ Oceania 7%

Asia 27％ Word-of-mouth score Japan 16％ Europe 34% Other 13% China Taiwan October 2018 to September 2019 0 10 20 30 40 50 60 70 80 90 100（％） South Korea Hong Kong Southeast Asia （Score） karaksa hotels Competitors hotels 95 America 2％ Osaka Europe 2% Oceania 2% 90 Asia 81％ Japan Other 9％ South Hong Southeast 4% 85 China Taiwan Korea Kong Asia 0 10 20 30 40 50 60 70 80 90 100（％） 80 Sapporo Ginza TOKYO STATION Osaka Namba Kansai Air Gate

Average for all hotels Average for all hotels ■ Word-of-mouth score: 89.8 ■ Ratio of foreign guests: 88.7% High word-of-mouth score leads to Overall, the percentage of Asian guests is quite Copyright ⓒ KARAKSA HOTELS Corporation new customer acquisition. high, but each area has unique characteristics. All Rights Reserved

14 (Billions of people) 2.0 18％ 16％ The global tourism market International traveler numbers 1.80 (Billions of people) 14％ An increase of 12％ 850 million tourists continues to expand. The global market for international 2.01.5 between 2010 and18％ 2030 16％ travel is expanding, with tourists 1.40 1.80 Our focus is on the 14％ An increase of from East and Southeast Asia 12％ 1.20 1.0 850 million tourists driving market growth. 1.5 between 2010 and 2030 inbound market 0.95 0.81 1.40 1.20 1.00.5 0.95 0.81

0.50 2005 2010 2015 2018 2030 (Projected) Percentage of international travelers compared to the global population

0 Source: UNWTO (The United Nations World Tourism 2005 2010 2015 2018 2030 Organization) (Projected) Percentage of international travelers compared to the global population

Growth in the Japanese Number of foreign visitors to Japan inbound market (Millions of people) 70

The number of foreign visitors to 60.00

Japan reached a record high of Number of foreign visitors to Japan (Millions of people) 70 31.2 million in 2018. 50 Japan's inbound tourism market is 60.00

anticipated to continue growing in 31.19 the future. 50 30

19.74 22.88

31.19 30 8.61 10 6.73 19.74 22.88 3.33 0 2005 2010 2015 2018 2030 Copyright ⓒ KARAKSA HOTELS Corporation (Government goal) 10 8.61 All Rights Reserved Source: JNTO (Japan National Tourism Organization) / 6.73Total number East Asia Southeast Asia The Japan Tourism Agency 3.33 15 0 2005 2010 2015 2018 2030 (Government goal) Total number East Asia Southeast Asia A focus on visitors from East and Southeast Asian populations, and trends in per capita GDP East and Southeast Asia, East Asia is large in terms of overall volume, while the Southeast Asian countries have younger demographics and potential for growth. In the future, both populations and earnings will grow, and the number of international travelers is anticipated to increase explosively. who are driving the foreign (Billions of people) (USD per capita) South Korea 2.0 50,000 Southeast Asia East Asia (excl. Japan) （52） travel market Population (left axis) China （1,393） GDP (right axis) 39,738 1.5 37,500 Taiwan 1.52 1.48 Myanmar （24） 1.39 Hong Kong （54） 1.18 Laos （8） 1.0 25,000 Thailand（7）（69） Vietnam 0.73 Cambodia（96） The Philippines 0.65 0.5 0.59 12,500 （16）（107） 0.44 13,778 Brunei Malaysia （0.4）（32） 0 0 1990 2010 2018 2030(Projected) Singapore Average ( ) indicates （6） 21.6｜27.5 27.4｜37.9 29.2｜40.1 34.6｜46.5 age Indonesia December 2018 population （268） Source: United Nations, IMF (International Monetary Fund), World Bank, etc. Unit: One million people [Note] Average ages for 2018 are figures from 2015. Figures for 2018 GDP per capita estimated by the IMF. Figures for Taiwan come from the Taiwan Directorate General of Budget, Source: IMF (International Monetary Fund) Accounting and Statistics

Current state of the international tourism markets in Asia

In countries where per capita GDP is less than 10,000 USD, the majority of citizens have never traveled overseas. There is rich latent potential for travel to Japan from these countries. Annual number of people departing Group travel Individual travel the country divided by population GDP (USD per capita) Over 100% Hong Kong

Over 100% Singapore

Approx. 66％ Taiwan 30,000

Approx. 51％ South Korea

Approx. 13％ Thailand 10,000 Approx. 10％ China

Approx. 6％ The Philippines 5,000

Approx. 3％ Indonesia

Vietnam 3,000

People who have yet to take their ﬁrst overseas trip Laos Copyright ⓒ KARAKSA HOTELS Corporation Myanmar All Rights Reserved Cambodia Source: United Nations, IMF (International Monetary Fund), World Bank, Japan Tourism Agency, etc. 16 One-stop shop for From hotel development to operations, the Xymax Group provides a complete range of services leveraging the functions, wealth of experience and expertise of each Group company. all hotel operations and services

Management/Operations

KARAKSA HOTELS

Ownership/Development KARAKSA HOTELS SAPPORO

XYMAX KARAKSA HOTELS TOKYO Tour Business/Bus Service

KARAKSA HOTELS KANSAI XYMAX Overseas Alliances TRAVEL DESIGN XYMAX GLOBAL PARTNER

KARAKSA MEDIA PARTNER

Facility Maintenance and Management Security XYMAX ALPHA MAX SECURITY XYMAX HOKKAIDO SERVICES XYMAX KANSAI Janitorial Linen Supply XYMAX SALA RENATUS KANSAI

17 “karaksa hotel” creates new Company Profile value for Japanese hotels with travelers as our main target

Company Name ■ (Japanese Name) 株式会社からくさホテルズ (English Name) KARAKSA HOTELS Corporation

Established ■ October 15, 2015

Capital ■ 10 million yen

Shareholders ■ XYMAX Corporation (100% investment)

Address ■ 1-1-1 Akasaka, Minato-ku, Tokyo, Japan 107-0052

Telephone ■ +81 3 5544 5813 (Main)

Facsimile ■ +81 3 5544 5814

URL ■ karaksahotels.com

Business Services ■ Hotel management / operations management

Board of Directors ■ Ryosuke Sato, President, Representative Director Fumihiro Sasaki, Director Hideki Fukae, Director Tomohiko Miyajima, Director Kenji Yoshimoto, Director