Invincible Investment (TYO:8963) domestic hotel portfolio gross revenue declined 1.9% year over year to 8.09 billion yen in June, according to a Tokyo bourse filing on Friday.
The REIT's revenue per available room (RevPAR) dropped 4% to 10,264 yen, while the occupancy rate ticked down to 82.7%.
The average daily rate (ADR) declined 3.9% to 12,412 yen.
The yearly change reflected the absence of Expo 2025 accommodation demand, fewer Chinese tourists due to strained bilateral ties, and a series of typhoons.
Excluding the impact of China, overall inbound demand stayed solid, with no material effect from the situation in the Middle East, the REIT said.
The REIT forecasts July RevPAR to be about 1.2% from a year ago.
For the Cayman Islands hotels, RevPAR jumped 21.4% to $285, with occupancy rising to 61.8%, while ADR rose to $462.
Gross revenue for the Cayman properties increased 29.3% to $8 million.
Shares of the REIT rose more than 1% in Monday's trade.