Mori Trust REIT (TYO:8961) has signed a new 20-year fixed-term lease with Sotetsu Hotel Management for the Hotel Sunroute Plaza Shinjuku, effective September 2027, according to its bourse filing on Wednesday.
The new contract will increase the annual fixed rent by approximately 47% to 1.92 billion yen and introduce a variable rent component based on room revenue above a predetermined standard.
The shift from a pure fixed-rent structure is expected to boost rental income by roughly 307 million yen per fiscal period.
With this change, five of the six hotels in the REIT's portfolio will now operate under variable-rent schemes.
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