June 24, 2022

FOR IMMEDIATE RELEASE

Company Name: Polaris Holdings Co., Ltd.

Representative:Atsuo Umeki, President and Representative Director

Stock Listing: Tokyo Stock Exchange, Second Section

Stock Code: 3010

Inquiries: Satoshi Hosono, Director and CFO（TEL:03-5822-3010）

Polaris Executes Management Contract for Two New Hotels

and Revenue Guarantee Contract

Polaris Holdings Co., Ltd. (hereinafter the "Company") announced today that "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 two hotels ("KOKO HOTEL Residence Asakusa Kappabashi" and "KOKO HOTEL Residence Asakusa Tawaramachi", (hereinafter referred to as the "Property Portfolio") 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 secure minimum profitability related to the hotel operations of the two hotels. As a result of Polaris' strong growth initiatives, this transaction will increase its hotels under management to 31 hotels with 5,682 rooms.

Details are as follows:

1. Conclusion of the Hotel Management Contract

  1. Purpose of commencing the 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. Withtheopeningofthesixnewhotels,PolarisGroupwillhaveatotalof31hotelswith5,682roomsundermanagement.

TheAsakusa area of Tokyo, where the hotel in question is located, is a well-known area where Senso-ji Temple and other Japanese-style culture and architecture are fused with the modern cityscape. This area has become very popular, especially in the past few years, not only among domestic travelers but also among foreign visitors to Japan. KOKO HOTEL Residence Asakusa Kappabashi is located in Kappabashi Dougu-gai, which is also popular among foreign visitors to Japan, and KOKO HOTEL Residence Asakusa Tawaramachi is conveniently located just a 1-minute walk from Tawaramachi Station on the Tokyo Metro Ginza Line. It is conveniently located as a base for sightseeing not only inAsakusa but also across Tokyo.

The new hotel will be the first KOKO HOTEL Residence brand under the KOKO HOTEL brand, and will mainly

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target families, groups, and long-term stay guests. In addition to ample room space for four to six guests per room, the rooms are equipped with a mini-kitchen, refrigerator, washer/dryer, tableware, dining table, etc., making them suitable for long-term stays.

This hotel is suitable for accommodation demand, especially for families and groups, including foreign visitors who are expected to return to Japan in the near future. Furthermore, these operations are expected to further contribute to the realization of sustainable profit growth for our group.

  1. Outline of the Portfolio

Hotel Name

Location

Number

scheduled

of rooms

opening date

KOKO HOTEL Residence

3-24-2 Nishi-

47 room

Late July

(i)

Asakusa Kappabashi

Asakusa, Taito-ku,

2022

Tokyo

(ii)

KOKO HOTEL Residence

2-8-12 Kotobuki,

42 room

Late July

Asakusa Tawaramachi

Taito-ku, Tokyo

2022

Total

89 room

(3) Date of agreement

Date of agreement

June 24, 2022

(4) Outline of counterparty

(i) KOKO HOTEL Residence Asakusa Kappabashi

(i)

Name

Kappabashi Hotel Unei GK

(ii)

Address

Ark Hills Sengokuyama Mori Tower 40F, 1-9-10 Roppongi, Minato-ku, Tokyo

(iii)

Date of incorporation

March 24, 2022

(iv)

Business descriptions

Hotel Business, etc.

Name

Managing Member Pearl Cap General Incorporated Association

Address

Ark Hills Sengokuyama Mori Tower 40F, 1-9-10 Roppongi,

(v)

Outline of Managing

Minato-ku, Tokyo

Partner

Positions and

Representative Member Pearl Cap General Incorporated

names of

Association

representatives

Capital

There are no relationships worthy of special mention.

relationship

Human

There are no relationships worthy of special mention.

Relationship between the

relationship

(vi)

listed company and the

Business

There are no relationships worthy of special mention.

fund

relationship

Whether this

company is a

There are no relationships worthy of special mention.

related party

(ii) KOKO HOTEL Residence Asakusa Tawaramachi

(i)

Name

Tawaramachi Hotel Unei GK

(ii)

Address

Ark Hills Sengokuyama Mori Tower 40F, 1-9-10 Roppongi, Minato-ku, Tokyo

(iii)

Date of incorporation

March 24, 2022

(iv)

Business descriptions

Hotel Business, etc.

(v)

Outline of Managing

Name

Managing Member Pearl Cap General Incorporated Association

Ark Hills Sengokuyama Mori Tower 40F, 1-9-10 Roppongi,

Partner

Address

Minato-ku, Tokyo

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Positions and

Representative Member Pearl Cap General Incorporated

names of

Association

representatives

Capital

There are no relationships worthy of special mention.

relationship

Human

There are no relationships worthy of special mention.

Relationship between the

relationship

(vi)

listed company and the

Business

There are no relationships worthy of special mention.

fund

relationship

Whether this

company is a

There are no relationships worthy of special mention.

related party

2. Execution of the Revenue Guarantee Contract, and Received funds for opening preparations

(1) Details of the agreement

Fino Hotels concluded a Revenue Guarantee Contract with affiliates of Star Asia Group (hereinafter the "Guarantor

Company"). In the situation where the pandemic 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 27

million yen from the Guarantor Company to Fino Hotels as expenses such as outsourcing expenses related to opening

preparations at the start of operation of each hotel. It is stipulated that if the hotel sales 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

Date of agreement June 24, 2022

(3) Outline of counterparty

The Guarantor Company is an affiliate of 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 Company.

3. Outlook

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.

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KACHIKAIHATSU Co. Ltd. published this content on 24 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 June 2022 02:55:03 UTC.