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JR Group Hotels discount for JR pass holders

According to the JR pass Guide, pass holders can get a discount at JR Group Hotels.

However, I was unable to find out how to get a discount.
Nowhere in the Guide does it provide a discount code and the JR Group Hotel site doesn't describe how to get the discount.

Does anyone know how to get the discount?

Do you show your rail pass at the hotel and the discount is applied at that time?

Thanks.

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