Ichigo: PROPERA’s AI-powered hotel revenue management system cleared to scale for deployment in all of its hotels by 2024

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[Provisional Translation Only]

This English translation of the original Japanese document is provided for informational purposes only. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail.

January 17, 2022

Ichigo Inc. (Tokyo Stock Exchange First Section, 2337) Representative: Scott Callon, Chairman

Information: Takanori Sakamatsu, Statutory Senior Manager

Phone: +81-3-3502-4818www.ichigo.gr.jp/en

Ichigo’s AI-powered hotel revenue management system PROPERA cleared to grow for deployment to all of its hotels by 2024

Ichigo signed an agreement with DEVELOP Co., Ltd. (“DEVELOP”) to license Ichigo’s AI-based hotel revenue management system PROPERA, and today began rolling out the system to DEVELOP’s hotels. Under the agreement, PROPERA will be rolled out to all 44 hotels currently operated by DEVELOP (including hotels preparing for a new opening) and any hotel DEVELOP opens by December 31, 2024.

2. Presentation of PROPERA

Ichigo has developed PROPERA, an AI (artificial intelligence) based hotel revenue management system that calculates the optimal price for hotel rooms to maximize revenue for hotel operators. PROPERA identifies optimal pricing based on multivariate statistical analysis of 365 days of historical data and the use of machine learning, and can respond flexibly to changing market conditions.

In his own hotels, Ichigo has developed revenue management know-how that has increased annual revenue by 10% to 40%. This accumulated expertise forms the basis of PROPERA, which is now being rolled out to third-party hotel operators after being piloted in hotels owned by Ichigo and Ichigo Hotel (3463).

PROPERA will drive hotel competitiveness by maximizing hotel revenue and increasing productivity.

Please see the PROPERA website for more detailed information on this AI-based hotel revenue management system: https://propera.me(Japanese only)

2. Presentation of the license agreement

DEVELOP’s “Rescue Hotel” business model serves the public interest by allowing its business hotels to be easily repurposed for temporary accommodation in the event of a disaster. The company is rapidly expanding its operations, concluding disaster assistance agreements with many municipalities across Japan. DEVELOP operates 44 hotels with a total of 1,475 rooms (including hotels preparing for new opening) across Japan as of December 31, 2021, and is expected to continue to expand as it continues to open new hotels.

This licensing agreement aims to support DEVELOP’s continued business expansion by introducing PROPERA to help maximize hotel revenue. PROPERA will be rolled out sequentially to all hotels DEVELOP opens by December 31, 2024.

PROPERA’s income is tied to hotel income, and Ichigo will help DEVELOP generate its income, which in turn will increase PROPERA’s income.

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