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Japan Hotel REIT Investment has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Japan Hotel REIT Investment Corp displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Japan Hotel REIT Investment's Interest Coverage for the quarter that ended in Dec. 2025 was 9.77.
Japan Hotel REIT Investment's debt to revenue ratio for the quarter that ended in Dec. 2025 was 5.59.
As of today, Japan Hotel REIT Investment's Altman Z-Score is 1.32.
Japan Hotel REIT Investment (OTCPK:NIPOF) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Japan Hotel REIT Investment has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Japan Hotel REIT Investment Financial Strength Related Terms
NIPOF vs HST, RHP, APLE: Financial Strength Comparison
For the REIT - Hotel & Motel subindustry, Japan Hotel REIT Investment's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Japan Hotel REIT Investment Financial Strength vs REITs Industry
For the REITs industry and Real Estate sector, Japan Hotel REIT Investment's Financial Strength distribution charts can be found below:
* The bar in red indicates where Japan Hotel REIT Investment's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Japan Hotel REIT Investment has a Z-score of 1.32, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 1.32 is in distress zone. This implies bankruptcy possibility in the next two years.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Japan Hotel REIT Investment (NIPOF) has a Financial Strength of 3 as of Dec. 2025. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Japan Hotel REIT Investment and its competitors. This is near median its historical median of 3.00. Over the past decade, Japan Hotel REIT Investment's Financial Strength has ranged from 2.00 to 6.00.
Is Japan Hotel REIT Investment's Financial Strength too high?
Japan Hotel REIT Investment's current Financial Strength of 3 is near median its 10-year median of 3.00. Over the past 10 years, this metric has ranged from a low of 2.00 to a high of 6.00. Overall, Japan Hotel REIT Investment has a GF Score™ of 77/100, reflecting its overall financial health beyond just this single metric.
How does Japan Hotel REIT Investment's Financial Strength compare to HST and RHP?
Japan Hotel REIT Investment's Financial Strength of 3 can be compared against companies in the REITs industry. Historically, Japan Hotel REIT Investment's own Financial Strength has ranged from 2.00 to 6.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a REITs company?
A good Financial Strength depends on the REITs industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Japan Hotel REIT Investment and its competitors. Japan Hotel REIT Investment's current Financial Strength is 3, which is near median its own 10-year median of 3.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Hotel REIT Investment stock overvalued right now?
Japan Hotel REIT Investment (NIPOF) has a current Financial Strength of 3. The stock's GF Value™ is $597.62, compared to a current price of $471.74 — trading 21.1% below its estimated fair value. The current Financial Strength is 3, which is near median its 10-year median of 3.00. Japan Hotel REIT Investment's overall GF Score™ is 77/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Japan Hotel REIT Investment (NIPOF), the current Financial Strength is 3 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Japan Hotel REIT Investment (NIPOF) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Hotel REIT Investment stock appears to be undervalued.
The current stock price of $471.74 is trading 21.1% below its estimated GF Value™ of $597.62.
Key valuation signals for NIPOF:
Financial Strength: 3 (near median its 10-year median of 3.00)
GF Value™: $597.62 vs. price of $471.74 (21.1% below fair value)
No single metric tells the full story. See the NIPOF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Hotel REIT Investment Corp is a real estate investment trust. It aims to achieve stable earnings and sustainable growth in the asset from mid- to long-term perspectives. The company invests in business hotels, resort hotels, and city hotels, mainly located in the metropolitan areas and other cities of Japan.
77GF Score
Get the complete analysis for NIPOF
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