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drh-20211104
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
November 4, 2021 
DiamondRock Hospitality Company
(Exact name of registrant as specified in charter)
Maryland 001-32514 20-1180098
(State or Other Jurisdiction
of Incorporation)		 (Commission
File Number)		 (IRS Employer
Identification No.)
2 Bethesda Metro Center, Suite 1400
Bethesda, MD 20814
(Address of Principal Executive Offices) (Zip Code)

(Registrant’s telephone number, including area code): (240) 744-1150
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par value per shareDRHNew York Stock Exchange
8.250% Series A Cumulative Redeemable Preferred Stock, par value $0.01 per shareDRH Pr ANew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
☐ Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.      ☐





ITEM 2.02. Results of Operations and Financial Condition.

On November 4, 2021, DiamondRock Hospitality Company issued a press release announcing its financial results for the three and nine months ended September 30, 2021. A copy of that press release is furnished as Exhibit 99.1 and is incorporated by reference herein.

The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.


ITEM 9.01. Financial Statements and Exhibits.

(d) Exhibits.

The following exhibits are included with this report:
Exhibit No. Description
99.1                    Press Release, dated November 4, 2021
101.SCH                Inline XBRL Taxonomy Extension Schema Document
101.CAL                Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF                Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB                Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE                Inline XBRL Taxonomy Extension Presentation Linkbase Document
104                    Cover Page Interactive Data File













SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
  DIAMONDROCK HOSPITALITY COMPANY
Dated: November 4, 2021  By: 
/s/ Briony R. Quinn
   Briony R. Quinn
   Senior Vice President and Treasurer
Document

https://cdn.kscope.io/f81e5e4ca81bdf54b3e8372f3dfe77b2-drhlogopressreleasea35a.gif

COMPANY CONTACTS    

Jeff Donnelly
Chief Financial Officer
(240) 744-1190

Briony Quinn
Senior Vice President
(240) 744-1196

FOR IMMEDIATE RELEASE

DIAMONDROCK HOSPITALITY COMPANY REPORTS THIRD QUARTER RESULTS
Largest Quarterly Hotel Profit Since Pandemic Inception
Third Quarter RevPAR Exceeded 80% of 2019

BETHESDA, Maryland, Thursday, November 4, 2021 – DiamondRock Hospitality Company (the “Company”) (NYSE: DRH), a lodging-focused real estate investment trust that owns a portfolio of 31 premium hotels in the United States, today announced results of operations for the quarter ended September 30, 2021.

Highlights:

•Net Loss: Net loss was $1.8 million and loss per diluted share was $0.02.
•Comparable Revenues: Comparable total revenues were $181.5 million, which represents 20.4% decline from the comparable period of 2019.
•Comparable RevPAR: Comparable RevPAR was $155.17, which represents a 19.6% decline from the comparable period of 2019. Comparable ADR increased 0.7% from the comparable period in 2019.
•Comparable Hotel Adjusted EBITDA: Comparable Hotel Adjusted EBITDA was $48.3 million, a $18.4 million improvement from the second quarter of 2021.
•Adjusted EBITDA: Adjusted EBITDA was $38.9 million, a $19.1 million improvement from the second quarter of 2021.
•Adjusted FFO: Adjusted FFO was $20.9 million and Adjusted FFO per diluted share was $0.10.
•Liquidity: The Company ended the third quarter with $537.9 million total liquidity. The Company has remained cash flow positive at the hotel level since March 2021.
•Hotel Acquisitions: The Company acquired the Bourbon Orleans Hotel in New Orleans, Louisiana and the Henderson Park Inn in Destin, Florida during the quarter. These acquisitions continued the Company's strategy to increase exposure to resort and leisure-oriented hotels.
•Preliminary October Results: Preliminary comparable revenues for October 2021 are 78.6% of the same period in 2019, as compared to 73.5% of the same period in 2019 for September 2021.

“Third quarter results exceeded our expectations as travel demand continued to return to our hotels and our asset management best practices enabled solid profit flow through. Remarkably, the portfolio achieved a higher average room rate than the comparable quarter in 2019, with a number of our resorts setting all-time records,” said Mark W. Brugger, President and Chief Executive Officer of DiamondRock Hospitality Company. “Our two recent acquisitions are tracking ahead of our underwriting for the year, and we are actively exploring a number of


additional acquisition opportunities with our substantial investment capacity. Additionally, we are finalizing the upbrandings of our resorts in Vail and Key West, with several more value-creation repositionings behind those. Lastly, I want to say that we were honored to have our ESG efforts recognized by GRESB as DiamondRock was once again ranked #1 among our peers for our corporate responsibility program."

Operating Results

Please see “Non-GAAP Financial Measures” attached to this press release for an explanation of the terms “EBITDAre,” “Adjusted EBITDA,” “Hotel Adjusted EBITDA,” “Hotel Adjusted EBITDA Margin,” “FFO” and “Adjusted FFO” and a reconciliation of these measures to net income. Comparable operating results include our 2021 acquisitions and exclude our 2021 dispositions for all periods presented. See “Reconciliation of Comparable Operating Results” attached to this press release for a reconciliation to historical amounts.

Quarter Ended September 30,Change From
20212020201920202019
($ amounts in millions, except hotel statistics and per share amounts)
Comparable Operating Results (1)
ADR$238.34 $209.07 $236.57 14.0 %0.7 %
Occupancy65.1 %19.9 %81.6 %45.2 %(16.5)%
RevPAR$155.17 $41.55 $192.99 273.5 %(19.6)%
Total RevPAR$216.03 $62.18 $271.43 247.4 %(20.4)%
Revenues$181.5 $52.2 $228.0 247.7 %(20.4)%
Hotel Adjusted EBITDA$48.3 $(14.3)$70.6 437.8 %(31.6)%
Hotel Adjusted EBITDA Margin26.60 %(27.29)%30.95 %5,389 bps(435) bps
Available Rooms840,236 839,960 839,960 276 276 
Actual Operating Results (2)
Revenues$179.5 $50.1 $240.3 258.3 %(25.3)%
Net (loss) income$(1.8)$(79.6)$11.6 97.7 %(115.5)%
(Loss) income per diluted share$(0.02)$(0.40)$0.06 95.0 %(133.3)%
Adjusted EBITDA$38.9 $(24.4)$67.5 259.4 %(42.4)%
Adjusted FFO $20.9 $(44.3)$55.3 147.2 %(62.2)%
Adjusted FFO per diluted share$0.10 $(0.22)$0.27 145.5 %(63.0)%

(1) The amounts for all periods presented exclude the two hotels sold during 2021, Frenchman's Reef and The Lexington Hotel and does not adjust for hotels that had suspended operations. The amounts for all periods presented also include pre-acquisition operating results for Bourbon Orleans Hotel from January 1, 2019 to July 28, 2021 and Henderson Park Inn from January 1, 2019 to July 29, 2021. The
pre-acquisition operating results were obtained from the sellers of the hotels during the acquisition due diligence process. We have made no adjustments to the amounts provided to us by the seller. The pre-acquisition operating results were not audited or reviewed by the Company's independent auditors.

(2) Actual operating results include the operating results of hotels acquired and disposed of for the Company's respective ownership periods.

2

Nine Months Ended September 30,Change From
20212020201920202019
($ amounts in millions, except hotel statistics and per share amounts)
Comparable Operating Results (1)
ADR$229.31 $213.79 $235.67 7.3 %(2.7)%
Occupancy47.4 %29.3 %79.0 %18.1 %(31.6)%
RevPAR$108.59 $62.59 $186.12 73.5 %(41.7)%
Total RevPAR$153.84 $95.95 $269.70 60.3 %(43.0)%
Revenues$383.5 $240.0 $671.9 59.8 %(42.9)%
Hotel Adjusted EBITDA$78.0 $(18.6)$206.6 519.4 %(62.2)%
Hotel Adjusted EBITDA Margin20.34 %(7.73)%30.75 %2,807 bps (1,041) bps
Available Rooms2,493,100 2,501,620 2,491,299 (8,520)1,801 
Actual Operating Results (2)
Revenues$377.2 $240.4 $700.6 56.9 %(46.2)%
Net (loss) income$(192.5)$(187.7)$49.6 (2.6)%(488.1)%
(Loss) income per diluted share$(0.94)$(0.93)$0.24 (1.1)%(491.7)%
Adjusted EBITDA$49.1 $(49.6)$197.8 199.0 %(75.2)%
Adjusted FFO $7.2 $(76.9)$162.3 109.4 %(95.6)%
Adjusted FFO per diluted share$0.03 $(0.38)$0.80 107.9 %(96.3)%
(1) The amounts for all periods presented exclude the two hotels sold during 2021, Frenchman's Reef and The Lexington Hotel and does not adjust for hotels that had suspended operations. The amounts for all periods presented also include pre-acquisition operating results for Bourbon Orleans Hotel from January 1, 2019 to July 28, 2021 and Henderson Park Inn from January 1, 2019 to July 29, 2021. The
pre-acquisition operating results were obtained from the sellers of the hotels during the acquisition due diligence process. We have made no adjustments to the amounts provided to us by the seller. The pre-acquisition operating results were not audited or reviewed by the Company's independent auditors.

(2) Actual operating results include the operating results of hotels acquired and disposed of for the Company's respective ownership periods.

The following tables provide operating information for the nine months ended September 30, 2021 and preliminary operating information for October 2021(1):
January 2021February 2021March 2021April 2021 May 2021 June 2021
Number of Hotels31 31 31 31 31 31 
Number of Rooms9,133 9,133 9,133 9,133 9,133 9,133 
Occupancy21.2 %29.1 %35.5 %38.4 %46.9 %58.7 %
ADR$192.48 $216.02 $234.19 $227.18 $222.93 $222.16 
RevPAR$40.88 $62.87 $83.06 $87.21 $104.50 $130.37 
Total RevPAR$61.46 $92.71 $116.48 $127.47 $152.57 $181.92 
2021 vs 2019
Occupancy change in bps(4,280) bps(4,600) bps(4,380) bps(4,300) bps(3,360) bps(2,690) bps
ADR Rate % change(4.0)%(0.1)%(1.4)%(6.9)%(12.0)%(10.9)%
RevPAR % change(68.2)%(61.3)%(55.9)%(56.1)%(48.7)%(38.9)%
Total RevPAR % change(69.0)%(62.5)%(57.7)%(55.5)%(49.2)%(40.4)%


3

July 2021August 2021September 2021Preliminary October 2021
Number of Hotels31 31 31 31 
Number of Rooms9,133 9,133 9,133 9,133 
Occupancy69.4 %63.3 %62.6 %66.8 %
ADR$242.18 $227.45 $245.31 $264.41 
RevPAR$168.00 $143.88 $153.57 $176.59 
Total RevPAR$230.84 $201.07 $216.18 $247.24 
2021 vs 2019
Occupancy change in bps(1,290) bps(1,840) bps(1,810) bps(1,560) bps
ADR Rate % change5.7 %1.4 %(4.6)%0.3 %
RevPAR % change(10.9)%(21.6)%(26.0)%(18.7)%
Total RevPAR % change(12.5)%(21.8)%(26.5)%(21.4)%
(1) The amounts for all periods presented exclude the two hotels sold during 2021, Frenchman's Reef and The Lexington Hotel and does not adjust for hotels that had suspended operations. The amounts for all periods presented also include pre-acquisition operating results for Bourbon Orleans Hotel and Henderson Park Inn. The pre-acquisition operating results were obtained from the sellers of the hotels during the acquisition due diligence process. We have made no adjustments to the amounts provided to us by the seller. The pre-acquisition operating results were not audited or reviewed by the Company's independent auditors.

Hotel Acquisitions

The Company purchased the Bourbon Orleans Hotel in New Orleans, Louisiana on July 29, 2021 and the Henderson Park Inn in Destin, Florida on July 30, 2021. The combined purchase price for the two hotels was $108.6 million. Inclusive of transaction costs, the total investment was $117.4 million. The total investment in the Bourbon Orleans Hotel represents a 7% capitalization rate on 2019 net operating income (“NOI”). The hotel reopened in June and is expected to generate approximately a 6.3% NOI yield in 2022 and is underwritten to achieve a stabilized 8% NOI yield. The investment in the Henderson Park Inn represents an 8.8% capitalization rate on 2021 forecasted NOI. Both hotels are currently forecasted to exceed the Company's original underwriting for 2021.

Capital Expenditures

The Company has invested approximately $30.1 million in capital improvements at its operating hotels during the nine months ended September 30, 2021. The Company spent approximately $2.7 million on the rebuild of Frenchman's Reef during the nine months ended September 30, 2021 and has no further obligation to fund any additional amounts related to the rebuild following the sale of the property on April 30, 2021. The Company expects to spend approximately $55 million on necessary capital improvements and a select few transformational projects with attractive returns on investment in 2021. Significant projects include the following:

•The Lodge at Sonoma: The Company completed an upgrade renovation to reposition and rebrand the hotel to an Autograph Collection Hotel during the third quarter. The renovation includes a new restaurant by celebrity chef Michael Mina.
•Vail Marriott Mountain Resort: The Company is completing the final phase of a multi-year renovation to rebrand the resort as The Hythe Vail, a Luxury Collection Hotel in the fourth quarter of 2021.
•Margaritaville Beach House Key West: The Company is investing $3 million to convert the Barbary Beach House Key West to the Margaritaville Beach Resort Key West in the fourth quarter of 2021.
•JW Marriott Denver Cherry Creek: The Company is completing renovations in order to rebrand the hotel as Hotel Clio, a Luxury Collection Hotel at the first quarter of 2022.


4

Balance Sheet and Liquidity

As of September 30, 2021, the Company's liquidity was $537.9 million and is comprised of $66.5 million of unrestricted corporate cash, $71.4 million of unrestricted cash at its hotels and $400.0 million of capacity on its senior unsecured credit facility. As of September 30, 2021, the Company had $1.0 billion of total debt outstanding, which consisted of $586.3 million of property-specific, non-recourse mortgage debt, $400.0 million of unsecured term loans and no outstanding borrowings on its $400.0 million senior unsecured credit facility. The Company has no debt maturities until 2022.

Dividends

The Company declared a quarterly dividend of $0.515625 per share on its 8.250% Series A Cumulative Redeemable Preferred Stock to shareholders of record as of September 17, 2021. This dividend was paid on September 30, 2021. The Company has suspended its quarterly common stock cash dividends. The resumption in quarterly common dividends will be determined by the Company’s Board of Directors after considering the Company’s obligations under its various financing agreements, projected taxable income, compliance with its debt covenants, long-term operating projections, expected capital requirements and risks affecting the Company’s business.

Earnings Call

The Company will host a conference call to discuss its third quarter results on Friday, November 5, 2021, at 9:00 a.m. Eastern Time (ET). To participate in the live call, investors are invited to dial 844-287-6622 (for domestic callers) or 530-379-4559 (for international callers). The participant passcode is 9668876. A live webcast of the call will be available via the investor relations section of DiamondRock Hospitality Company’s website at www.drhc.com or www.earnings.com. A replay of the webcast will also be archived on the website for one week.

About the Company
DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in top gateway markets and destination resort locations. The Company currently owns 31 premium quality hotels with over 9,100 rooms. The Company has strategically positioned its hotels to be operated both under leading global brand families as well as unique boutique hotels in the lifestyle segment. For further information on the Company and its portfolio, please visit DiamondRock Hospitality Company’s website at www.drhc.com.

This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as “believe,” “expect,” “intend,” “project,” “forecast,” “plan” and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: the adverse impact of the novel coronavirus (COVID-19) on the U.S., regional and global economies, travel, the hospitality industry, and the financial condition and results of operations of the Company and its hotels; national and local economic and business conditions, including the potential for additional terrorist attacks, that will affect occupancy rates at the Company’s hotels and the demand for hotel products and services; operating risks associated with the hotel business; risks associated with the level of the Company’s indebtedness and its ability to obtain covenant waivers on its credit agreements for its senior unsecured credit facility and unsecured term loans; relationships with property managers; the ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; changes in travel patterns, taxes and government regulations which influence or determine wages, prices, construction procedures and costs; and other risk factors contained in the Company’s filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of

5

the date of this release, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.

6

DIAMONDROCK HOSPITALITY COMPANY
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)

September 30, 2021December 31, 2020
ASSETS(unaudited)
Property and equipment, net$2,544,486 $2,817,356 
Right-of-use assets100,499 96,673 
Restricted cash31,333 23,050 
Due from hotel managers109,500 69,495 
Prepaid and other assets (1)
19,335 28,403 
Cash and cash equivalents66,499 111,796 
Total assets
$2,871,652 $3,146,773 
LIABILITIES AND EQUITY
Liabilities:
Mortgage and other debt, net of unamortized debt issuance costs$584,365 $595,149 
Unsecured term loans, net of unamortized debt issuance costs398,423 398,550 
Senior unsecured credit facility— 55,000 
Total debt982,788 1,048,699 
Lease liabilities107,939 104,973 
Deferred rent58,770 56,344 
Due to hotel managers84,464 95,548 
Unfavorable contract liabilities, net63,340 64,796 
Accounts payable and accrued expenses (2)
42,324 46,542 
Deferred income related to key money, net7,753 10,946 
Total liabilities
1,347,378 1,427,848 
Equity:
Preferred stock, $0.01 par value; 10,000,000 shares authorized;
    8.250% Series A Cumulative Redeemable Preferred Stock (liquidation preference $25.00 per share), 4,760,000 shares issued and outstanding at September 30, 2021 and December 31, 202048 48 
Common stock, $0.01 par value; 400,000,000 shares authorized; 210,619,840 and 210,073,514 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively2,106 2,101 
Additional paid-in capital2,292,180 2,285,491 
Accumulated deficit(775,537)(576,531)
Total stockholders’ equity
1,518,797 1,711,109 
Noncontrolling interests5,477 7,816 
Total equity
1,524,274 1,718,925 
Total liabilities and equity
$2,871,652 $3,146,773 

(1) Includes $8.2 million and $10.7 million of prepaid expenses and $11.1 million and $15.3 million of other assets as of September 30, 2021 and December 31, 2020, respectively, and $2.4 million of insurance receivables as of December 31, 2020.

(2) Includes $15.3 million and $15.2 million of accrued property taxes, $2.1 million and $3.9 million of accrued capital expenditures and $24.9 million and $24.8 million of other accrued liabilities as of September 30, 2021 and December 31, 2020, respectively, and $2.6 million of deferred tax liabilities as of December 31, 2020.

7

DIAMONDROCK HOSPITALITY COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
(unaudited)
Three Months Ended September 30, Nine Months Ended September 30,
2021202020212020
Revenues:
Rooms
$128,743 $33,166 $266,051 $158,066 
Food and beverage
36,513 9,586 76,052 56,529 
Other
14,216 7,315 35,097 25,846 
Total revenues
179,472 50,067 377,200 240,441 
Operating Expenses:
Rooms
32,442 11,792 67,736 54,588 
Food and beverage
26,957 10,043 58,091 45,845 
Management fees
3,104 (755)6,514 2,644 
Franchise fees
6,011 1,813 12,193 8,402 
Other hotel expenses
66,399 53,196 167,208 171,759 
Depreciation and amortization
25,555 28,514 77,209 87,397 
Impairment losses
— — 126,697 — 
Corporate expenses
8,341 7,267 23,790 19,650 
Total operating expenses, net
168,809 111,870 539,438 390,285 
Interest and other expense (income), net
11 (191)(460)58 
Interest expense
10,052 10,818 29,246 43,665 
  Total other expenses, net
10,063 10,627 28,786 43,723 
Income (loss) before income taxes
600 (72,430)(191,024)(193,567)
Income tax (expense) benefit
(2,371)(7,205)(1,433)5,853 
Net loss
(1,771)(79,635)(192,457)(187,714)
Less: Net loss attributable to noncontrolling interests
6 43 812 781 
Net loss attributable to the Company
(1,765)(79,592)(191,645)(186,933)
Distributions to preferred stockholders(2,454)(845)(7,362)(845)
Net loss attributable to common stockholders$(4,219)$(80,437)$(199,007)$(187,778)
Loss per share:
Net loss per share available to common stockholders - basic
$(0.02)$(0.40)$(0.94)$(0.93)
Net loss per share available to common stockholders - diluted
$(0.02)$(0.40)$(0.94)$(0.93)
Weighted-average number of common shares outstanding:
Basic
212,256,590 200,978,327 211,966,969 200,994,434
Diluted
212,256,590 200,978,327 211,966,969 200,994,434






8

Non-GAAP Financial Measures

We use the following non-GAAP financial measures that we believe are useful to investors as key measures of our operating performance: EBITDA, EBITDAre, Adjusted EBITDA, Hotel EBITDA, Hotel Adjusted EBITDA, FFO and Adjusted FFO. These measures should not be considered in isolation or as a substitute for measures of performance in accordance with U.S. GAAP. EBITDA, EBITDAre, Adjusted EBITDA, Hotel EBITDA, Hotel Adjusted EBITDA, FFO and Adjusted FFO, as calculated by us, may not be comparable to other companies that do not define such terms exactly as the Company.

Use and Limitations of Non-GAAP Financial Measures

Our management and Board of Directors use EBITDA, EBITDAre, Adjusted EBITDA, Hotel EBITDA, Hotel Adjusted EBITDA, FFO and Adjusted FFO to evaluate the performance of our hotels and to facilitate comparisons between us and other lodging REITs, hotel owners who are not REITs and other capital intensive companies. The use of these non-GAAP financial measures has certain limitations. These non-GAAP financial measures as presented by us, may not be comparable to non-GAAP financial measures as calculated by other real estate companies. These measures do not reflect certain expenses or expenditures that we incurred and will incur, such as depreciation, interest and capital expenditures. We compensate for these limitations by separately considering the impact of these excluded items to the extent they are material to operating decisions or assessments of our operating performance. Our reconciliations to the most comparable U.S. GAAP financial measures, and our consolidated statements of operations and cash flows, include interest expense, capital expenditures, and other excluded items, all of which should be considered when evaluating our performance, as well as the usefulness of our non-GAAP financial measures.

These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with U.S. GAAP. They should not be considered as alternatives to operating profit, cash flow from operations, or any other operating performance measure prescribed by U.S. GAAP. These non-GAAP financial measures reflect additional ways of viewing our operations that we believe, when viewed with our U.S. GAAP results and the reconciliations to the corresponding U.S. GAAP financial measures, provide a more complete understanding of factors and trends affecting our business than could be obtained absent this disclosure. We strongly encourage investors to review our financial information in its entirety and not to rely on a single financial measure.

EBITDA, EBITDAre and FFO

EBITDA represents net income (calculated in accordance with U.S. GAAP) excluding: (1) interest expense; (2) provision for income taxes, including income taxes applicable to sale of assets; and (3) depreciation and amortization. The Company computes EBITDAre in accordance with the National Association of Real Estate Investment Trusts ("Nareit") guidelines, as defined in its September 2017 white paper "Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate." EBITDAre represents net income (calculated in accordance with U.S. GAAP) adjusted for: (1) interest expense; (2) provision for income taxes, including income taxes applicable to sale of assets; (3) depreciation and amortization; (4) gains or losses on the disposition of depreciated property including gains or losses on change of control; (5) impairment write-downs of depreciated property and of investments in unconsolidated affiliates caused by a decrease in value of depreciated property in the affiliate; and (6) adjustments to reflect the entity's share of EBITDAre of unconsolidated affiliates.

We believe EBITDA and EBITDAre are useful to an investor in evaluating our operating performance because they help investors evaluate and compare the results of our operations from period to period by removing the impact of our capital structure (primarily interest expense) and our asset base (primarily depreciation and amortization, and in the case of EBITDAre, impairment and gains or losses on dispositions of depreciated property) from our operating results. In addition, covenants included in our debt agreements use EBITDA as a measure of financial compliance. We also use EBITDA and EBITDAre as measures in determining the value of hotel acquisitions and dispositions.

The Company computes FFO in accordance with standards established by the Nareit, which defines FFO as net income determined in accordance with U.S. GAAP, excluding gains or losses from sales of properties and impairment losses, plus real estate related depreciation and amortization. The Company believes that the presentation of FFO provides useful information to investors regarding its operating performance because it is a measure of the Company's operations without regard to specified non-cash items, such as real estate related depreciation and amortization and gains or losses on the sale of assets. The Company also uses FFO as one measure in assessing its operating results.

9

Hotel EBITDA

Hotel EBITDA represents net income excluding: (1) interest expense, (2) income taxes, (3) depreciation and amortization, (4) corporate general and administrative expenses (shown as corporate expenses on the consolidated statements of operations), and (5) hotel acquisition costs. We believe that Hotel EBITDA provides our investors a useful financial measure to evaluate our hotel operating performance, excluding the impact of our capital structure (primarily interest), our asset base (primarily depreciation and amortization), and our corporate-level expenses (corporate expenses and hotel acquisition costs). With respect to Hotel EBITDA, we believe that excluding the effect of corporate-level expenses provides a more complete understanding of the operating results over which individual hotels and third-party management companies have direct control. We believe property-level results provide investors with supplemental information on the ongoing operational performance of our hotels and effectiveness of the third-party management companies operating our business on a property-level basis.

Adjustments to EBITDAre, FFO and Hotel EBITDA

We adjust EBITDAre, FFO and Hotel EBITDA when evaluating our performance because we believe that the exclusion of certain additional items described below provides useful supplemental information to investors regarding our ongoing operating performance and that the presentation of Adjusted EBITDA, Adjusted FFO and Hotel Adjusted EBITDA when combined with U.S. GAAP net income, EBITDAre, FFO and Hotel EBITDA, is beneficial to an investor's complete understanding of our consolidated and property-level operating performance. Hotel Adjusted EBITDA margins are calculated as Hotel Adjusted EBITDA divided by total hotel revenues. We adjust EBITDAre, FFO and Hotel EBITDA for the following items:

•Non-Cash Lease Expense and Other Amortization: We exclude the non-cash expense incurred from the straight line recognition of expense from our ground leases and other contractual obligations and the non-cash amortization of our favorable and unfavorable contracts, originally recorded in conjunction with certain hotel acquisitions. We exclude these non-cash items because they do not reflect the actual cash amounts due to the respective lessors and service providers in the current period and they are of lesser significance in evaluating our actual performance for that period.

•Cumulative Effect of a Change in Accounting Principle: The Financial Accounting Standards Board promulgates new accounting standards that require or permit the consolidated statement of operations to reflect the cumulative effect of a change in accounting principle. We exclude the effect of these adjustments, which include the accounting impact from prior periods, because they do not reflect the Company’s actual underlying performance for the current period.

•Gains or Losses from Early Extinguishment of Debt: We exclude the effect of gains or losses recorded on the early extinguishment of debt because these gains or losses result from transaction activity related to the Company’s capital structure that we believe are not indicative of the ongoing operating performance of the Company or our hotels.

•Hotel Acquisition Costs: We exclude hotel acquisition costs expensed during the period because we believe these transaction costs are not reflective of the ongoing performance of the Company or our hotels.

•Severance Costs: We exclude corporate severance costs, or reversals thereof, incurred with the termination of corporate-level employees and severance costs incurred at our hotels related to lease terminations or structured severance programs because we believe these costs do not reflect the ongoing performance of the Company or our hotels.

•Hotel Manager Transition Items: We exclude the transition items associated with a change in hotel manager because we believe these items do not reflect the ongoing performance of the Company or our hotels.

•Other Items:  From time to time we incur costs or realize gains that we consider outside the ordinary course of business and that we do not believe reflect the ongoing performance of the Company or our hotels. Such items may include, but are not limited to, the following: pre-opening costs incurred with newly developed hotels; lease preparation costs incurred to prepare vacant space for marketing; management or franchise contract termination fees; gains or losses from legal settlements; costs incurred related to natural disasters; and gains on property insurance claim settlements, other than income related to business interruption insurance.

In addition, to derive Adjusted FFO we exclude any fair value adjustments to interest rate swaps. We exclude these non-cash amounts because they do not reflect the underlying performance of the Company.



10

Reconciliations of Non-GAAP Measures

EBITDA, EBITDAre and Adjusted EBITDA

The following tables are reconciliations of our GAAP net income to EBITDA, EBITDAre and Adjusted EBITDA (in thousands):
Three Months Ended September 30,
202120202019
Net (loss) income$(1,771)$(79,635)$11,574 
Interest expense 10,052 10,818 14,184 
Income tax expense2,371 7,205 1,217 
Real estate related depreciation and amortization25,555 28,514 29,474 
EBITDAre
36,207 (33,098)56,449 
Non-cash lease expense and other amortization1,664 1,715 1,750 
Professional fees and pre-opening costs related to Frenchman's Reef (1)
335593 6,378 
Hotel manager transition items 523 (1,021)582 
Uninsured costs related to natural disasters (2)
187 — — 
Loss on early extinguishment of debt— — 2,373 
Severance costs (3)
— 7,367 — 
Adjusted EBITDA$38,916 $(24,444)$67,532 
Nine Months Ended September 30,
202120202019
Net (loss) income$(192,457)$(187,714)$49,628 
Interest expense 29,246 43,665 38,264 
Income tax expense (benefit)1,433 (5,853)1,939 
Real estate related depreciation and amortization77,209 87,397 87,805 
EBITDA(84,569)(62,505)177,636 
Impairment losses126,697 — — 
EBITDAre
42,128 (62,505)177,636 
Non-cash lease expense and other amortization5,007 5,172 5,249 
Professional fees and pre-opening costs related to Frenchman's Reef (1)
1,388 418 11,445 
Hotel manager transition items 651 (460)1,050 
Uninsured costs related to natural disasters (2)
187 — — 
Loss on early extinguishment of debt— — 2,373 
Severance costs (3)
(216)7,760 — 
Adjusted EBITDA$49,145 $(49,615)$197,753 
(1)Represents pre-opening costs related to the re-opening of Frenchman's Reef, as well as legal and professional fees and other costs incurred at Frenchman's Reef as a result of Hurricane Irma that are not covered by insurance.
(2)Represents costs incurred at the Bourbon Orleans Hotel as a result of Hurricane Ida, which are not covered by insurance.
(3)Consists of severance costs incurred with the elimination of positions at our hotels, which are classified within other hotel expenses on the consolidated statement of operations.










11


Hotel EBITDA and Hotel Adjusted EBITDA
    
The following table is a reconciliation of our GAAP net income to Hotel EBITDA and Hotel Adjusted EBITDA (in thousands):
Three Months Ended September 30,
202120202019
Net (loss) income$(1,771)$(79,635)$11,574 
Interest expense 10,052 10,818 14,184 
Income tax expense2,371 7,205 1,217 
Real estate related depreciation and amortization25,555 28,514 29,474 
EBITDA36,207 (33,098)56,449 
Corporate expenses8,341 7,267 6,318 
Interest and other expense (income), net11 (191)(102)
Uninsured costs related to natural disasters (1)
187— — 
Loss on early extinguishment of debt— — 2,373 
Professional fees and pre-opening costs related to Frenchman's Reef (2)
335593 6,378 
Hotel EBITDA45,081 (25,429)71,416 
Non-cash lease expense and other amortization1,664 1,715 1,750 
Hotel manager transition items 523 (1,021)582 
Severance costs (3)
— 7,367 — 
Hotel Adjusted EBITDA$47,268 $(17,368)$73,748 
Nine Months Ended September 30,
202120202019
Net (loss) income$(192,457)$(187,714)$49,628 
Interest expense 29,246 43,665 38,264 
Income tax expense (benefit)1,433 (5,853)1,939 
Real estate related depreciation and amortization77,209 87,397 87,805 
EBITDA(84,569)(62,505)177,636 
Corporate expenses23,790 19,650 20,785 
Interest and other (income) expense, net(460)58 (510)
Uninsured costs related to natural disasters (1)
187 — — 
Loss on early extinguishment of debt— — 2,373 
Professional fees and pre-opening costs related to Frenchman's Reef (2)
1,388 418 11,445 
Impairment losses126,697 — — 
Hotel EBITDA67,033 (42,379)211,729 
Non-cash lease expense and other amortization5,007 5,172 5,249 
Hotel manager transition items 651 (460)1,050 
Severance costs (3)
(216)7,760 — 
Hotel Adjusted EBITDA$72,475 $(29,907)$218,028 
(1)Represents costs incurred at the Bourbon Orleans Hotel as a result of Hurricane Ida, which are not covered by insurance.
(2)Represents pre-opening costs related to the re-opening of Frenchman's Reef, as well as legal and professional fees and other costs incurred at Frenchman's Reef as a result of Hurricane Irma that are not covered by insurance.
(3)Consists of severance costs incurred with the elimination of positions at our hotels, which are classified within other hotel expenses on the consolidated statement of operations.



12

FFO and Adjusted FFO
The following tables are reconciliations of our GAAP net income to FFO and Adjusted FFO (in thousands):
Three Months Ended September 30,
202120202019
Net (loss) income$(1,771)$(79,635)$11,574 
Real estate related depreciation and amortization25,555 28,514 29,474 
Impairment losses, net of tax(2,215)— — 
FFO21,569 (51,121)41,048 
Distribution to preferred stockholders(2,454)(845)— 
FFO available to common stock and unit holders19,115 (51,966)41,048 
Non-cash lease expense and other amortization1,664 1,715 1,750 
Uninsured costs related to natural disasters (1)
187— — 
Professional fees and pre-opening costs related to Frenchman's Reef (2)
335593 6,378 
Hotel manager transition items 523 (1,021)582 
Loss on early extinguishment of debt— — 2,373 
Severance costs (3)
— 7,367 — 
Fair value adjustments to interest rate swaps(919)(983)3,143 
Adjusted FFO available to common stock and unit holders$20,905 $(44,295)$55,274 
Adjusted FFO available to common stock and unit holders, per diluted share$0.10 $(0.22)$0.27 
Nine Months Ended September 30,
202120202019
Net (loss) income$(192,457)$(187,714)$49,628 
Real estate related depreciation and amortization77,209 87,397 87,805 
Impairment losses, net of tax127,282 — — 
FFO12,034 (100,317)137,433 
Distribution to preferred stockholders(7,362)(845)— 
FFO available to common stock and unit holders4,672 (101,162)137,433 
Non-cash lease expense and other amortization5,007 5,172 5,249 
Uninsured costs related to natural disasters (1)
187— — 
Professional fees and pre-opening costs related to Frenchman's Reef (2)
1,388 418 11,445 
Hotel manager transition items 651 (460)1,050 
Loss on early extinguishment of debt— — 2,373 
Severance costs (3)
(216)7,760 — 
Fair value adjustments to interest rate swaps(4,488)11,329 4,790 
Adjusted FFO available to common stock and unit holders$7,201 $(76,943)$162,340 
Adjusted FFO available to common stock and unit holders, per diluted share$0.03 $(0.38)$0.80 
(1)Represents costs incurred at the Bourbon Orleans Hotel as a result of Hurricane Ida, which are not covered by insurance.
(2)Represents pre-opening costs related to the re-opening of Frenchman's Reef, as well as legal and professional fees and other costs incurred at Frenchman's Reef as a result of Hurricane Irma that are not covered by insurance.
(3)Consists of severance costs incurred with the elimination of positions at our hotels, which are classified within other hotel expenses on the consolidated statement of operations.






13

Reconciliation of Comparable Operating Results

The following presents the revenues, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA Margin together with comparable prior year results, which excludes the results for our 2021 dispositions (in thousands):
Three Months Ended September 30,
202120202019
Revenues$179,472 $50,067 $240,279 
Hotel revenues from prior ownership (1)
2,044 2,317 6,045 
Hotel revenues from sold hotels (2)
— (153)(18,338)
Comparable Revenues$181,516 $52,231 $227,986 
Hotel Adjusted EBITDA$47,268 $(17,368)$73,748 
Hotel Adjusted EBITDA from prior ownership (1)
833 339 1,756 
Hotel Adjusted EBITDA from sold hotels (2)
178 2,776 (4,938)
Comparable Hotel Adjusted EBITDA$48,279 $(14,253)$70,566 
Hotel Adjusted EBITDA Margin26.34 %(34.69)%30.69 %
Comparable Hotel Adjusted EBITDA Margin26.60 %(27.29)%30.95 %
Nine Months Ended September 30,
202120202019
Revenues$377,200 $240,441 $700,572 
Hotel revenues from prior ownership (1)
6,406 8,435 19,194 
Hotel revenues from sold hotels (2)
(60)(8,857)(47,872)
Comparable Revenues$383,546 $240,019 $671,894 
Hotel Adjusted EBITDA$72,475 $(29,907)$218,028 
Hotel Adjusted EBITDA from prior ownership (1)
888 1,273 6,307 
Hotel Adjusted EBITDA from sold hotels (2)
4,664 10,081 (17,758)
Comparable Hotel Adjusted EBITDA$78,027 $(18,553)$206,577 
Hotel Adjusted EBITDA Margin19.21 %(12.44)%31.12 %
Comparable Hotel Adjusted EBITDA Margin20.34 %(7.73)%30.75 %
(1) Amounts represent the pre-acquisition operating results for Bourbon Orleans Hotel from January 1, 2019 to July 28, 2021 and Henderson Park Inn from January 1, 2019 to July 29, 2021. The pre-acquisition operating results were obtained from the sellers of the hotels during the acquisition due diligence process. We have made no adjustments to the amounts provided to us by the seller. The pre-acquisition operating results were not audited or reviewed by the Company's independent auditors.
(2) Amounts represent the operating results of Frenchman's Reef and The Lexington Hotel.



14

Selected Quarterly Comparable Operating Information

The following tables are presented to provide investors with selected quarterly comparable operating information. The operating information includes historical quarterly operating results for our 31-hotel portfolio, which includes our 2021 acquisitions and excludes our 2021 dispositions.

Quarter 1, 2019Quarter 2, 2019Quarter 3, 2019Quarter 4, 2019Full Year 2019
ADR$219.47 $248.90 $236.57 $241.30 $237.05 
Occupancy72.7 %82.5 %81.6 %76.0 %78.2 %
RevPAR$159.65 $205.33 $192.99 $183.45 $185.44 
Total RevPAR$240.00 $297.31 $271.43 $265.12 $268.54 
Revenues (in thousands)$197,032 $246,876 $227,986 $222,692 $894,586 
Hotel Adjusted EBITDA (in thousands)$49,794 $86,217 $70,566 $65,256 $271,833 
Hotel Adjusted EBITDA Margin25.27 %34.92 %30.95 %29.30 %30.39 %
Available Rooms820,964 830,375 839,960 839,960 3,331,259 
Quarter 1, 2020Quarter 2, 2020Quarter 3, 2020Quarter 4, 2020Full Year 2020
ADR$220.21 $182.83 $209.07 $204.26 $211.78 
Occupancy58.9 %9.2 %19.9 %23.2 %27.8 %
RevPAR$129.70 $16.75 $41.55 $47.47 $58.79 
Total RevPAR$199.94 $26.09 $62.18 $72.34 $90.01 
Revenues (in thousands)$166,112 $21,676 $52,231 $60,760 $300,779 
Hotel Adjusted EBITDA (in thousands)$22,901 $(27,201)$(14,253)$(4,727)$(23,280)
Hotel Adjusted EBITDA Margin13.79 %(125.49)%(27.29)%(7.78)%(7.74)%
Available Rooms830,830 830,830 839,960 839,960 3,341,580 

Quarter 1, 2021Quarter 2, 2021Quarter 3, 2021
ADR$217.76 $223.74 $238.34 
Occupancy28.6 %48.0 %65.1 %
RevPAR$62.25 $107.33 $155.17 
Total RevPAR$90.13 $153.97 $216.03 
Revenues (in thousands)$74,069 $127,961 $181,516 
Hotel Adjusted EBITDA (in thousands)$(105)$29,853 $48,279 
Hotel Adjusted EBITDA Margin(0.14)%23.33 %26.60 %
Available Rooms821,790 831,074 840,236 

15

Market Capitalization as of September 30, 2021
(in thousands)
Enterprise Value
Common equity capitalization (at September 30, 2021 closing price of $9.45/share)$2,027,450 
Preferred equity capitalization (at liquidation value of $25.00/share)119,000 
Consolidated debt (face amount)986,342 
Cash and cash equivalents(66,499)
Total enterprise value
$3,066,293 
Share Reconciliation
Common shares outstanding210,620 
Operating partnership units775 
Unvested restricted stock held by management and employees1,451 
Share grants under deferred compensation plan1,699 
Combined shares and units214,545
Debt Summary as of September 30, 2021
(dollars in thousands)
LoanInterest Rate as of September 30, 2021TermOutstanding PrincipalMaturity
Salt Lake City Marriott Downtown at City Creek
LIBOR + 3.25 (1)
Variable45,900 
January 2022 (2)
Westin Washington D.C. City Center3.99%Fixed56,516 January 2023
The Lodge at Sonoma Resort3.96%Fixed25,786 April 2023
Westin San Diego Downtown3.94%Fixed59,023 April 2023
Courtyard New York Manhattan / Midtown East4.40%Fixed78,305 August 2024
Worthington Renaissance Fort Worth Hotel3.66%Fixed77,901 May 2025
JW Marriott Denver Cherry Creek 4.33%Fixed59,112 July 2025
Westin Boston Seaport District4.36%Fixed183,799 November 2025
     Unamortized debt issuance costs(1,977)
Total mortgage and other debt, net of unamortized debt issuance costs584,365 
Unsecured term loan
LIBOR + 2.40% (3)
Variable350,000 July 2024
Unsecured term loan
LIBOR + 2.40% (4)
Fixed50,000 October 2023
     Unamortized debt issuance costs(1,577)
Unsecured term loans, net of unamortized debt issuance costs398,423 
Senior unsecured credit facility
LIBOR + 2.55% (5)
Variable— 
July 2023 (6)
Total debt, net of unamortized debt issuance costs$982,788 
Weighted-average interest rate of fixed rate debt4.25 %
Total weighted-average interest rate3.97 %
(1)LIBOR is subject to a floor of 1.0%.
(2)The loan may be extended for an additional year upon satisfaction of certain conditions.
(3)The Company entered into an interest rate swap agreement in July 2019 to fix LIBOR at 1.70% for $175 million of the term loan through July 2024. LIBOR is subject to a floor of 0.25%.
(4)    The Company entered into an interest rate swap agreement in January 2019 to fix LIBOR at 2.41% through October 2023.
(5)    LIBOR is subject to a floor of 0.25%.
(6)    May be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions.

16

Monthly Operating Statistics (1)
Number of RoomsADROccupancyRevPAR
July 2021July 2020B/(W) 2020July 2021July 2020B/(W) 2020July 2021July 2020B/(W) 2020
Total - 31 Hotels9,133 $242.18 $215.16 12.6 %69.4 %16.8 %52.6 %$168.00 $36.24 363.6 %
Resorts - 14 Hotels2,470 $373.10 $277.25 34.6 %75.5 %33.6 %41.9 %$281.54 $93.05 202.6 %
Number of RoomsJuly 2021July 2019B/(W) 2019July 2021July 2019B/(W) 2019July 2021July 2019B/(W) 2019
Total - 31 Hotels9,133 $242.18 $229.06 5.7 %69.4 %82.3 %(12.9)%$168.00 $188.54 (10.9)%
Resorts - 14 Hotels2,470 $373.10 $256.15 45.7 %75.5 %81.0 %(5.5)%$281.54 $207.49 35.7 %
Number of RoomsAugust 2021August 2020B/(W) 2020August 2021August 2020B/(W) 2020August 2021August 2020B/(W) 2020
Total - 31 Hotels9,133 $227.45 $204.83 11.0 %63.3 %19.6 %43.7 %$143.88 $40.09 258.9 %
Resorts - 14 Hotels2,470 $345.37 $264.56 30.5 %63.2 %39.1 %24.1 %$218.33 $103.35 111.3 %
Number of RoomsAugust 2021August 2019B/(W) 2019August 2021August 2019B/(W) 2019August 2021August 2019B/(W) 2019
Total - 31 Hotels9,133 $227.45 $224.37 1.4 %63.3 %81.7 %(18.4)%$143.88 $183.41 (21.6)%
Resorts - 14 Hotels2,470 $345.37 $253.88 36.0 %63.2 %76.6 %(13.4)%$218.33 $194.39 12.3 %

Number of RoomsSeptember 2021September 2020B/(W) 2020September 2021September 2020B/(W) 2020September 2021September 2020B/(W) 2020
Total - 31 Hotels9,133 $245.31 $208.21 17.8 %62.6 %23.3 %39.3 %$153.57 $48.54 216.4 %
Resorts - 14 Hotels2,470 $346.90 $284.45 22.0 %61.4 %40.0 %21.4 %$213.06 $113.84 87.2 %
Number of RoomsSeptember 2021September 2019B/(W) 2019September 2021September 2019B/(W) 2019September 2021September 2019B/(W) 2019
Total - 31 Hotels9,133 $245.31 $257.27 (4.6)%62.6 %80.7 %(18.1)%$153.57 $207.49 (26.0)%
Resorts - 14 Hotels2,470 $346.90 $259.03 33.9 %61.4 %69.6 %(8.2)%$213.06 $180.26 18.2 %
(1) All periods presented include the two hotels acquired in 2021: Bourbon Orleans Hotel and Henderson Park Inn and exclude the two hotels sold in 2021: Frenchman's Reef and The     Lexington Hotel.


17


Operating Statistics – Third Quarter
Number of RoomsADROccupancyRevPAR
3Q 20213Q 2020B/(W) 20203Q 20213Q 2020B/(W) 20203Q 20213Q 2020B/(W) 2020
Atlanta Marriott Alpharetta318 $119.77 $96.94 23.6 %63.2 %13.3 %49.9 %$75.75 $12.89 487.7 %
Barbary Beach House Key West186 $382.97 $194.90 96.5 %76.3 %33.6 %42.7 %$292.20 $65.49 346.2 %
Bethesda Marriott Suites272 $118.48 $104.27 13.6 %41.1 %19.0 %22.1 %$48.73 $19.85 145.5 %
Bourbon Orleans Hotel (1)
218 $189.19 $— 100.0 %55.9 %— %55.9 %$105.73 $— 100.0 %
Cavallo Point, The Lodge at the Golden Gate 142 $697.33 $510.79 36.5 %58.6 %26.1 %32.5 %$408.40 $133.09 206.9 %
Chicago Marriott Downtown Magnificent Mile1,200 $204.01 $159.33 28.0 %54.4 %1.8 %52.6 %$110.97 $2.90 3,726.6 %
Courtyard Denver Downtown177 $198.04 $105.53 87.7 %77.0 %29.1 %47.9 %$152.42 $30.71 396.3 %
Courtyard New York Manhattan/Fifth Avenue189 $188.42 $— 100.0 %94.3 %— %94.3 %$177.64 $— 100.0 %
Courtyard New York Manhattan/Midtown East321 $221.26 $133.02 66.3 %77.5 %38.8 %38.7 %$171.52 $51.60 232.4 %
Havana Cabana Key West106 $289.47 $152.98 89.2 %85.6 %69.0 %16.6 %$247.92 $105.59 134.8 %
Henderson Park Inn (2)
37 $630.12 $560.12 12.5 %91.9 %88.7 %3.2 %$579.30 $496.84 16.6 %
Hilton Boston Downtown/Faneuil Hall403 $236.15 $139.19 69.7 %82.3 %12.3 %70.0 %$194.26 $17.09 1,036.7 %
Hilton Burlington Lake Champlain258 $304.18 $176.52 72.3 %83.1 %22.4 %60.7 %$252.78 $39.55 539.1 %
Hilton Garden Inn New York/Times Square Central282 $178.29 $— 100.0 %89.6 %— %89.6 %$159.71 $— 100.0 %
Hotel Emblem San Francisco96 $163.36 $141.40 15.5 %61.4 %14.3 %47.1 %$100.30 $20.22 396.0 %
Hotel Palomar Phoenix242 $166.94 $118.13 41.3 %56.3 %28.8 %27.5 %$93.95 $34.05 175.9 %
JW Marriott Denver Cherry Creek 199 $291.32 $204.28 42.6 %77.5 %39.4 %38.1 %$225.78 $80.55 180.3 %
Kimpton Shorebreak Resort157 $390.89 $290.80 34.4 %79.9 %53.5 %26.4 %$312.46 $155.54 100.9 %
L'Auberge de Sedona 88 $833.84 $606.77 37.4 %73.0 %76.5 %(3.5)%$609.01 $464.45 31.1 %
Orchards Inn Sedona70 $263.02 $197.72 33.0 %66.1 %59.5 %6.6 %$173.86 $117.56 47.9 %
Renaissance Charleston Historic District Hotel167 $322.94 $174.20 85.4 %89.8 %44.5 %45.3 %$290.15 $77.55 274.1 %
Salt Lake City Marriott Downtown at City Creek510 $166.22 $122.16 36.1 %56.4 %12.9 %43.5 %$93.79 $15.76 495.1 %
The Gwen Hotel311 $271.16 $196.22 38.2 %71.3 %20.8 %50.5 %$193.23 $40.74 374.3 %
The Landing Lake Tahoe Resort & Spa82 $725.58 $494.05 46.9 %42.1 %78.5 %(36.4)%$305.18 $387.76 (21.3)%
The Lodge at Sonoma Renaissance Resort & Spa182 $424.58 $248.29 71.0 %72.0 %43.6 %28.4 %$305.73 $108.28 182.4 %
Vail Marriott Mountain Resort344 $262.06 $228.66 14.6 %45.9 %36.0 %9.9 %$120.41 $82.35 46.2 %
Westin Boston Waterfront793 $210.10 $141.08 48.9 %63.9 %3.8 %60.1 %$134.26 $5.36 2,404.9 %
Westin Fort Lauderdale Beach Resort433 $200.44 $136.40 47.0 %57.6 %29.5 %28.1 %$115.37 $40.29 186.3 %
Westin San Diego Downtown436 $174.42 $144.69 20.5 %74.2 %23.0 %51.2 %$129.40 $33.27 288.9 %
Westin Washington D.C. City Center410 $143.36 $122.48 17.0 %43.7 %9.0 %34.7 %$62.66 $11.00 469.6 %
Worthington Renaissance Fort Worth Hotel504 $146.48 $141.75 3.3 %62.7 %17.4 %45.3 %$91.79 $24.66 272.2 %
Comparable Total (3)
9,133 $238.34 $209.07 14.0 %65.1 %19.9 %45.2 %$155.17 $41.55 273.5 %
Resorts - 14 Hotels2,470 $356.79 $271.59 31.4 %66.8 %38.4 %28.4 %$238.24 $104.24 128.5 %
(1) Hotel was acquired on July 29, 2021. Amounts reflect the operating results for the period from July 29, 2021 to September 30, 2021 and July 29, 2020 to September 30, 2020.
(2) Hotel was acquired on July 30, 2021. Amounts reflect the operating results for the period from July 30, 2021 to September 30, 2021 and July 30, 2020 to September 30, 2020.
(3) Amounts include the pre-acquisition operating results of the two hotels acquired in 2021 and exclude the two hotels sold in 2021.
18


 Operating Statistics – Third Quarter
Number of RoomsADROccupancyRevPAR
3Q 20213Q 2019B/(W) 20193Q 20213Q 2019B/(W) 20193Q 20213Q 2019B/(W) 2019
Atlanta Marriott Alpharetta318 $119.77 $163.80 (26.9)%63.2 %72.9 %(9.7)%$75.75 $119.41 (36.6)%
Barbary Beach House Key West186 $382.97 $205.47 86.4 %76.3 %61.4 %14.9 %$292.20 $126.16 131.6 %
Bethesda Marriott Suites272 $118.48 $167.95 (29.5)%41.1 %70.4 %(29.3)%$48.73 $118.20 (58.8)%
Bourbon Orleans Hotel (1)
218 $189.19 $189.73 (0.3)%55.9 %77.2 %(21.3)%$105.73 $146.38 (27.8)%
Cavallo Point, The Lodge at the Golden Gate 142 $697.33 $469.36 48.6 %58.6 %68.1 %(9.5)%$408.40 $319.72 27.7 %
Chicago Marriott Downtown Magnificent Mile1,200 $204.01 $239.22 (14.7)%54.4 %82.5 %(28.1)%$110.97 $197.32 (43.8)%
Courtyard Denver Downtown177 $198.04 $218.40 (9.3)%77.0 %85.9 %(8.9)%$152.42 $187.70 (18.8)%
Courtyard New York Manhattan/Fifth Avenue189 $188.42 $256.72 (26.6)%94.3 %91.6 %2.7 %$177.64 $235.21 (24.5)%
Courtyard New York Manhattan/Midtown East321 $221.26 $266.37 (16.9)%77.5 %97.4 %(19.9)%$171.52 $259.56 (33.9)%
Havana Cabana Key West106 $289.47 $170.13 70.1 %85.6 %85.9 %(0.3)%$247.92 $146.13 69.7 %
Henderson Park Inn (2)
37 $630.12 $506.61 24.4 %91.9 %85.2 %6.7 %$579.30 $431.42 34.3 %
Hilton Boston Downtown/Faneuil Hall403 $236.15 $342.48 (31.0)%82.3 %92.6 %(10.3)%$194.26 $317.16 (38.8)%
Hilton Burlington Lake Champlain258 $304.18 $244.03 24.6 %83.1 %90.1 %(7.0)%$252.78 $219.97 14.9 %
Hilton Garden Inn New York/Times Square Central282 $178.29 $249.41 (28.5)%89.6 %98.7 %(9.1)%$159.71 $246.24 (35.1)%
Hotel Emblem San Francisco96 $163.36 $247.06 (33.9)%61.4 %91.7 %(30.3)%$100.30 $226.47 (55.7)%
Hotel Palomar Phoenix242 $166.94 $143.55 16.3 %56.3 %73.4 %(17.1)%$93.95 $105.30 (10.8)%
JW Marriott Denver Cherry Creek 199 $291.32 $262.04 11.2 %77.5 %85.9 %(8.4)%$225.78 $225.20 0.3 %
Kimpton Shorebreak Resort157 $390.89 $306.54 27.5 %79.9 %81.8 %(1.9)%$312.46 $250.72 24.6 %
L'Auberge de Sedona 88 $833.84 $533.79 56.2 %73.0 %71.7 %1.3 %$609.01 $382.61 59.2 %
Orchards Inn Sedona70 $263.02 $207.09 27.0 %66.1 %74.3 %(8.2)%$173.86 $153.97 12.9 %
Renaissance Charleston Historic District Hotel167 $322.94 $239.40 34.9 %89.8 %77.9 %11.9 %$290.15 $186.38 55.7 %
Salt Lake City Marriott Downtown at City Creek510 $166.22 $179.29 (7.3)%56.4 %76.1 %(19.7)%$93.79 $136.50 (31.3)%
The Gwen Hotel311 $271.16 $280.57 (3.4)%71.3 %91.3 %(20.0)%$193.23 $256.27 (24.6)%
The Landing Lake Tahoe Resort & Spa82 $725.58 $376.60 92.7 %42.1 %86.4 %(44.3)%$305.18 $325.43 (6.2)%
The Lodge at Sonoma Renaissance Resort & Spa182 $424.58 $349.59 21.5 %72.0 %83.8 %(11.8)%$305.73 $292.92 4.4 %
Vail Marriott Mountain Resort344 $262.06 $212.25 23.5 %45.9 %70.4 %(24.5)%$120.41 $149.45 (19.4)%
Westin Boston Waterfront793 $210.10 $261.88 (19.8)%63.9 %84.5 %(20.6)%$134.26 $221.26 (39.3)%
Westin Fort Lauderdale Beach Resort433 $200.44 $144.14 39.1 %57.6 %69.6 %(12.0)%$115.37 $100.29 15.0 %
Westin San Diego Downtown436 $174.42 $192.85 (9.6)%74.2 %86.0 %(11.8)%$129.40 $165.84 (22.0)%
Westin Washington D.C. City Center410 $143.36 $178.69 (19.8)%43.7 %90.7 %(47.0)%$62.66 $162.01 (61.3)%
Worthington Renaissance Fort Worth Hotel504 $146.48 $177.73 (17.6)%62.7 %69.5 %(6.8)%$91.79 $123.48 (25.7)%
Comparable Total (3)
9,133 $238.34 $236.57 0.7 %65.1 %81.6 %(16.5)%$155.17 $192.99 (19.6)%
Resorts - 14 Hotels2,470 $356.79 $256.01 39.4 %66.8 %75.8 %(9.0)%$238.24 $194.11 22.7 %
(1) Hotel was acquired on July 29, 2021. Amounts reflect the operating results for the period from July 29, 2021 to September 30, 2021 and July 29, 2019 to September 30, 2019.
(2) Hotel was acquired on July 30, 2021. Amounts reflect the operating results for the period from July 30, 2021 to September 30, 2021 and July 30, 2019 to September 30, 2019.
(3) Amounts include the pre-acquisition operating results of the two hotels acquired in 2021 and exclude the two hotels sold in 2021.
19


Operating Statistics – Year to Date
Number of RoomsADROccupancyRevPAR
YTD 2021YTD 2020B/(W) 2020YTD 2021YTD 2020B/(W) 2020YTD 2021YTD 2020B/(W) 2020
Atlanta Marriott Alpharetta318 $109.44 $154.29 (29.1)%45.3 %23.8 %21.5 %$49.60 $36.70 35.1 %
Barbary Beach House Key West186 $384.06 $283.16 35.6 %85.2 %42.2 %43.0 %$327.16 $119.54 173.7 %
Bethesda Marriott Suites272 $111.73 $150.98 (26.0)%30.6 %23.6 %7.0 %$34.20 $35.60 (3.9)%
Bourbon Orleans Hotel (1)
218 $189.19 $— 100.0 %55.9 %— %55.9 %$105.73 $— 100.0 %
Cavallo Point, The Lodge at the Golden Gate 142 $634.83 $468.97 35.4 %41.3 %24.3 %17.0 %$262.11 $114.14 129.6 %
Chicago Marriott Downtown Magnificent Mile1,200 $194.21 $164.09 18.4 %25.1 %14.9 %10.2 %$48.76 $24.42 99.7 %
Courtyard Denver Downtown177 $152.90 $142.27 7.5 %59.5 %27.0 %32.5 %$91.05 $38.47 136.7 %
Courtyard New York Manhattan/Fifth Avenue189 $181.14 $206.17 (12.1)%40.9 %20.5 %20.4 %$74.06 $42.17 75.6 %
Courtyard New York Manhattan/Midtown East321 $171.24 $150.19 14.0 %75.4 %63.7 %11.7 %$129.17 $95.61 35.1 %
Havana Cabana Key West106 $284.07 $221.74 28.1 %91.1 %55.5 %35.6 %$258.91 $123.12 110.3 %
Henderson Park Inn (2)
37 $630.12 $560.12 12.5 %91.9 %88.7 %3.2 %$579.30 $496.84 16.6 %
Hilton Boston Downtown/Faneuil Hall403 $193.40 $183.50 5.4 %52.9 %25.9 %27.0 %$102.27 $47.58 114.9 %
Hilton Burlington Lake Champlain258 $230.48 $149.39 54.3 %59.4 %20.6 %38.8 %$136.85 $30.80 344.3 %
Hilton Garden Inn New York/Times Square Central282 $169.24 $154.35 9.6 %44.2 %25.6 %18.6 %$74.86 $39.46 89.7 %
Hotel Emblem San Francisco96 $152.78 $235.06 (35.0)%38.3 %27.3 %11.0 %$58.49 $64.22 (8.9)%
Hotel Palomar Phoenix242 $158.13 $195.61 (19.2)%55.6 %34.5 %21.1 %$87.86 $67.55 30.1 %
JW Marriott Denver Cherry Creek 199 $256.72 $219.17 17.1 %61.9 %34.2 %27.7 %$158.94 $75.00 111.9 %
Kimpton Shorebreak Resort157 $322.91 $237.64 35.9 %66.0 %54.6 %11.4 %$213.24 $129.77 64.3 %
L'Auberge de Sedona 88 $855.47 $585.16 46.2 %80.9 %59.1 %21.8 %$692.17 $345.92 100.1 %
Orchards Inn Sedona70 $287.73 $204.08 41.0 %69.9 %44.7 %25.2 %$201.15 $91.22 120.5 %
Renaissance Charleston Historic District Hotel167 $299.52 $206.83 44.8 %79.2 %41.7 %37.5 %$237.18 $86.34 174.7 %
Salt Lake City Marriott Downtown at City Creek510 $141.35 $158.91 (11.1)%43.3 %22.9 %20.4 %$61.25 $36.39 68.3 %
The Gwen Hotel311 $244.80 $194.12 26.1 %48.7 %28.1 %20.6 %$119.29 $54.54 118.7 %
The Landing Lake Tahoe Resort & Spa82 $486.70 $405.37 20.1 %50.0 %48.4 %1.6 %$243.57 $196.06 24.2 %
The Lodge at Sonoma Renaissance Resort & Spa182 $345.68 $240.69 43.6 %56.7 %29.9 %26.8 %$195.99 $71.94 172.4 %
Vail Marriott Mountain Resort344 $317.33 $367.58 (13.7)%46.0 %34.0 %12.0 %$145.93 $124.93 16.8 %
Westin Boston Waterfront793 $180.87 $193.59 (6.6)%38.6 %21.2 %17.4 %$69.80 $40.95 70.5 %
Westin Fort Lauderdale Beach Resort433 $236.88 $224.57 5.5 %60.2 %42.8 %17.4 %$142.53 $96.09 48.3 %
Westin San Diego Downtown436 $157.46 $175.26 (10.2)%51.3 %39.2 %12.1 %$80.71 $68.65 17.6 %
Westin Washington D.C. City Center410 $139.24 $182.86 (23.9)%25.8 %23.6 %2.2 %$35.88 $43.20 (16.9)%
Worthington Renaissance Fort Worth Hotel504 $148.82 $177.91 (16.4)%51.2 %28.7 %22.5 %$76.19 $51.10 49.1 %
Comparable Total (3)
9,133 $229.31 $213.79 7.3 %47.4 %29.3 %18.1 %$108.59 $62.59 73.5 %
Resorts - 14 Hotels2,470 $342.25 $286.98 19.3 %62.5 %38.2 %24.3 %$213.98 $109.57 95.3 %
(1) Hotel was acquired on July 29, 2021. Amounts reflect the operating results for the period from July 29, 2021 to September 30, 2021 and July 29, 2020 to September 30, 2020.
(2) Hotel was acquired on July 30, 2021. Amounts reflect the operating results for the period from July 30, 2021 to September 30, 2021 and July 30, 2020 to September 30, 2020.
(3) Amounts include the pre-acquisition operating results of the two hotels acquired in 2021 and exclude the two hotels sold in 2021.
20


Operating Statistics – Year to Date
Number of RoomsADROccupancyRevPAR
YTD 2021YTD 2019B/(W) 2019YTD 2021YTD 2019B/(W) 2019YTD 2021YTD 2019B/(W) 2019
Atlanta Marriott Alpharetta318 $109.44 $166.97 (34.5)%45.3 %72.7 %(27.4)%$49.60 $121.42 (59.2)%
Barbary Beach House Key West186 $384.06 $259.71 47.9 %85.2 %80.5 %4.7 %$327.16 $209.08 56.5 %
Bethesda Marriott Suites272 $111.73 $176.98 (36.9)%30.6 %73.0 %(42.4)%$34.20 $129.23 (73.5)%
Bourbon Orleans Hotel (1)
218 $189.19 $189.73 (0.3)%55.9 %77.2 %(21.3)%$105.73 $146.38 (27.8)%
Cavallo Point, The Lodge at the Golden Gate 142 $634.83 $458.60 38.4 %41.3 %65.2 %(23.9)%$262.11 $298.90 (12.3)%
Chicago Marriott Downtown Magnificent Mile1,200 $194.21 $225.86 (14.0)%25.1 %72.7 %(47.6)%$48.76 $164.20 (70.3)%
Courtyard Denver Downtown177 $152.90 $200.80 (23.9)%59.5 %81.1 %(21.6)%$91.05 $162.75 (44.1)%
Courtyard New York Manhattan/Fifth Avenue189 $181.14 $248.54 (27.1)%40.9 %86.7 %(45.8)%$74.06 $215.49 (65.6)%
Courtyard New York Manhattan/Midtown East321 $171.24 $244.82 (30.1)%75.4 %95.6 %(20.2)%$129.17 $234.03 (44.8)%
Havana Cabana Key West106 $284.07 $210.19 35.1 %91.1 %90.3 %0.8 %$258.91 $189.78 36.4 %
Henderson Park Inn (2)
37 $630.12 $506.61 24.4 %91.9 %85.2 %6.7 %$579.30 $431.42 34.3 %
Hilton Boston Downtown/Faneuil Hall403 $193.40 $308.79 (37.4)%52.9 %88.9 %(36.0)%$102.27 $274.58 (62.8)%
Hilton Burlington Lake Champlain258 $230.48 $193.56 19.1 %59.4 %81.7 %(22.3)%$136.85 $158.11 (13.4)%
Hilton Garden Inn New York/Times Square Central282 $169.24 $235.87 (28.2)%44.2 %98.5 %(54.3)%$74.86 $232.29 (67.8)%
Hotel Emblem San Francisco96 $152.78 $240.00 (36.3)%38.3 %78.9 %(40.6)%$58.49 $189.34 (69.1)%
Hotel Palomar Phoenix242 $158.13 $185.74 (14.9)%55.6 %82.7 %(27.1)%$87.86 $153.51 (42.8)%
JW Marriott Denver Cherry Creek 199 $256.72 $258.63 (0.7)%61.9 %70.8 %(8.9)%$158.94 $183.12 (13.2)%
Kimpton Shorebreak Resort157 $322.91 $268.57 20.2 %66.0 %78.7 %(12.7)%$213.24 $211.27 0.9 %
L'Auberge de Sedona 88 $855.47 $596.05 43.5 %80.9 %78.6 %2.3 %$692.17 $468.42 47.8 %
Orchards Inn Sedona70 $287.73 $244.33 17.8 %69.9 %77.7 %(7.8)%$201.15 $189.96 5.9 %
Renaissance Charleston Historic District Hotel167 $299.52 $260.92 14.8 %79.2 %84.0 %(4.8)%$237.18 $219.09 8.3 %
Salt Lake City Marriott Downtown at City Creek510 $141.35 $173.43 (18.5)%43.3 %69.4 %(26.1)%$61.25 $120.42 (49.1)%
The Gwen Hotel311 $244.80 $256.86 (4.7)%48.7 %83.3 %(34.6)%$119.29 $213.95 (44.2)%
The Landing Lake Tahoe Resort & Spa82 $486.70 $321.13 51.6 %50.0 %65.4 %(15.4)%$243.57 $210.11 15.9 %
The Lodge at Sonoma Renaissance Resort & Spa182 $345.68 $310.27 11.4 %56.7 %74.3 %(17.6)%$195.99 $230.57 (15.0)%
Vail Marriott Mountain Resort344 $317.33 $298.07 6.5 %46.0 %65.6 %(19.6)%$145.93 $195.66 (25.4)%
Westin Boston Waterfront793 $180.87 $251.43 (28.1)%38.6 %78.4 %(39.8)%$69.80 $197.05 (64.6)%
Westin Fort Lauderdale Beach Resort433 $236.88 $204.38 15.9 %60.2 %81.8 %(21.6)%$142.53 $167.26 (14.8)%
Westin San Diego Downtown436 $157.46 $194.30 (19.0)%51.3 %82.0 %(30.7)%$80.71 $159.39 (49.4)%
Westin Washington D.C. City Center410 $139.24 $206.84 (32.7)%25.8 %86.9 %(61.1)%$35.88 $179.77 (80.0)%
Worthington Renaissance Fort Worth Hotel504 $148.82 $186.24 (20.1)%51.2 %75.4 %(24.2)%$76.19 $140.50 (45.8)%
Comparable Total (3)
9,133 $229.31 $235.67 (2.7)%47.4 %79.0 %(31.6)%$108.59 $186.12 (41.7)%
Resorts - 14 Hotels2,470 $342.25 $272.08 25.8 %62.5 %77.0 %(14.5)%$213.98 $209.56 2.1 %
(1) Hotel was acquired on July 29, 2021. Amounts reflect the operating results for the period from July 29, 2021 to September 30, 2021 and July 29, 2019 to September 30, 2019.
(2) Hotel was acquired on July 30, 2021. Amounts reflect the operating results for the period from July 30, 2021 to September 30, 2021 and July 30, 2019 to September 30, 2019.
(3) Amounts include the pre-acquisition operating results of the two hotels acquired in 2021 and exclude the two hotels sold in 2021. .
21


Hotel Adjusted EBITDA Reconciliation
Third Quarter 2021
Days of OperationNet Income / (Loss)Plus:Plus:Plus:Equals: Hotel Adjusted EBITDA
Total RevenuesDepreciationInterest Expense
Adjustments (1)
Atlanta Marriott Alpharetta92$2,843 $426 $342 $— $— $768 
Barbary Beach House Key West92$6,354 $2,103 $728 $— $— $2,831 
Bethesda Marriott Suites92$1,553 $(2,390)$532 $— $1,490 $(368)
Bourbon Orleans Hotel64$1,646 $(91)$543 $— $4 $456 
Cavallo Point, The Lodge at the Golden Gate 92$11,455 $1,697 $2,023 $— $94 $3,814 
Chicago Marriott Downtown Magnificent Mile92$17,320 $1,508 $4,069 $6 $(397)$5,186 
Courtyard Denver Downtown92$2,755 $959 $376 $— $— $1,335 
Courtyard New York Manhattan/Fifth Avenue92$3,146 $(973)$329 $— $253 $(391)
Courtyard New York Manhattan/Midtown East92$5,211 $(938)$479 $934 $— $475 
Frenchman's Reef & Morning Star Marriott Beach Resort—$— $— $— $— $— $— 
Havana Cabana Key West92$3,282 $1,129 $267 $— $— $1,396 
Henderson Park Inn63$1,813 $696 $150 $— $— $846 
Hilton Boston Downtown/Faneuil Hall92$7,748 $980 $1,052 $— $— $2,032 
Hilton Burlington Lake Champlain92$6,529 $2,683 $571 $— $— $3,254 
Hilton Garden Inn New York/Times Square Central92$4,236 $(918)$765 $— $— $(153)
Hotel Emblem San Francisco92$1,027 $(305)$307 $— $— $2 
Hotel Palomar Phoenix92$3,416 $(410)$672 $— $282 $544 
JW Marriott Denver Cherry Creek 92$6,507 $757 $779 $665 $5 $2,206 
Kimpton Shorebreak Resort92$6,345 $2,121 $410 $— $— $2,531 
L'Auberge de Sedona 92$7,298 $1,790 $371 $— $— $2,161 
Orchards Inn Sedona92$1,932 $298 $82 $— $42 $422 
Renaissance Charleston Historic District Hotel92$5,729 $1,933 $462 $— $— $2,395 
Salt Lake City Marriott Downtown at City Creek92$5,932 $1,017 $513 $520 $11 $2,061 
The Gwen Hotel92$8,616 $1,605 $1,085 $— $— $2,690 
The Landing Lake Tahoe Resort & Spa92$3,501 $1,055 $434 $— $— $1,489 
The Lexington Hotel—$— $(178)$— $— $— $(178)
The Lodge at Sonoma Resort92$7,674 $1,452 $620 $268 $— $2,340 
Vail Marriott Mountain Resort92$4,971 $(224)$1,064 $— $— $840 
Westin Boston Seaport District92$14,033 $(2,624)$2,531 $2,094 $(122)$1,879 
Westin Fort Lauderdale Beach Resort92$10,875 $515 $1,064 $— $— $1,579 
Westin San Diego Downtown92$6,335 $551 $802 $604 $— $1,957 
Westin Washington D.C. City Center92$2,858 $(2,011)$1,019 $617 $— $(375)
Worthington Renaissance Fort Worth Hotel92$6,532 $(626)$1,114 $753 $2 $1,243 
Total$179,472 $13,587 $25,555 $6,461 $1,664 $47,268 
Prior Ownership Results (2)
$2,044 $645 $188 $— $— $833 
Less: Sold Hotels (3)
$— $178 $— $— $— $178 
Comparable Total$181,516 $14,410 $25,743 $6,461 $1,664 $48,279 
(1)    Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization favorable and unfavorable contract liabilities.
(2)     Amounts represent the pre-acquisition operating results of the Bourbon Orleans Hotel from July 1, 2021 to July 28, 2021 and Henderson Park Inn from July 1, 2021 to July 29, 2021.
(3)    Amounts represent the operating results of Frenchman's Reef and The Lexington Hotel.
22


Hotel Adjusted EBITDA Reconciliation
Third Quarter 2020
Plus:Plus:Plus:Equals:
Days of OperationTotal RevenuesNet Income / (Loss)DepreciationInterest Expense
Adjustments (1)
Hotel Adjusted EBITDA
Atlanta Marriott Alpharetta92$434 $(958)$357 $— $— $(601)
Barbary Beach House Key West92$1,586 $(924)$669 $— $— $(255)
Bethesda Marriott Suites92$577 $(2,735)$522 $— $1,502 $(711)
Cavallo Point, The Lodge at the Golden Gate 92$3,565 $(1,755)$1,841 $— $94 $180 
Chicago Marriott Downtown Magnificent Mile30$615 $(8,789)$4,155 $62 $(397)$(4,969)
Courtyard Denver Downtown92$674 $(452)$373 $— $— $(79)
Courtyard New York Manhattan/Fifth Avenue—$52 $(2,108)$331 $— $253 $(1,524)
Courtyard New York Manhattan/Midtown East92$1,551 $(2,680)$488 $952 $— $(1,240)
Frenchman's Reef & Morning Star Marriott Beach Resort—$— $— $— $— $— $— 
Havana Cabana Key West92$1,668 $77 $274 $— $— $351 
Hilton Boston Downtown/Faneuil Hall62$1,070 $(1,840)$1,239 $— $— $(601)
Hilton Burlington Lake Champlain77$1,135 $(680)$627 $— $— $(53)
Hilton Garden Inn New York/Times Square Central—$55 $(2,103)$846 $— $— $(1,257)
Hotel Emblem San Francisco92$220 $(642)$386 $— $— $(256)
Hotel Palomar Phoenix92$1,192 $(1,298)$672 $39 $286 $(301)
JW Marriott Denver Cherry Creek 92$2,382 $(1,655)$782 $679 $6 $(188)
Kimpton Shorebreak Resort92$3,265 $687 $411 $— $— $1,098 
L'Auberge de Sedona 92$5,461 $1,476 $640 $— $— $2,116 
Orchards Inn Sedona92$1,046 $(16)$80 $— $42 $106 
Renaissance Charleston Historic District Hotel92$1,409 $(495)$432 $— $(21)$(84)
Salt Lake City Marriott Downtown at City Creek92$1,038 $(1,826)$552 $538 $— $(736)
The Gwen Hotel92$1,867 $(1,830)$1,104 $— $— $(726)
The Landing Lake Tahoe Resort & Spa92$4,217 $1,730 $416 $— $— $2,146 
The Lexington Hotel—$153 $(5,235)$2,445 $6 $8 $(2,776)
The Lodge at Sonoma Resort92$2,329 $(1,421)$478 $274 $— $(669)
Vail Marriott Mountain Resort92$3,851 $(601)$1,117 $— $— $516 
Westin Boston Seaport District28$877 $(7,859)$2,593 $2,140 $(60)$(3,186)
Westin Fort Lauderdale Beach Resort92$4,003 $(1,966)$1,118 $— $— $(848)
Westin San Diego Downtown92$1,600 $(2,444)$1,124 $621 $— $(699)
Westin Washington D.C. City Center92$486 $(3,290)$1,316 $640 $— $(1,334)
Worthington Renaissance Fort Worth Hotel92$1,689 $(2,685)$1,126 $769 $2 $(788)
Total $50,067 $(54,317)$28,514 $6,720 $1,715 $(17,368)
Add: Prior Ownership Results (2)
$2,317 $(224)$563 $— $— $339 
Less: Sold Hotels (3)
$(153)$5,235 $(2,445)$(6)$(8)$2,776 
Comparable Total$52,231 $(49,306)$26,632 $6,714 $1,707 $(14,253)
(1)    Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization favorable and unfavorable contract liabilities.
(2)     Amounts represent the pre-acquisition operating results of the Bourbon Orleans Hotel and Henderson Park Inn from July 1, 2020 to September 30, 2020.
(3)    Amounts represent the operating results of Frenchman's Reef and The Lexington Hotel.
23


Hotel Adjusted EBITDA Reconciliation
Third Quarter 2019
Plus:Plus:Plus:Equals:
Days of OperationTotal RevenuesNet Income / (Loss)DepreciationInterest Expense
Adjustments (1)
Hotel Adjusted EBITDA
Atlanta Marriott Alpharetta92$4,787 $1,123 $455 $— $— $1,578 
Barbary Beach House Key West92$2,666 $(55)$351 $— $— $296 
Bethesda Marriott Suites92$3,880 $(1,078)$471 $— $1,514 $907 
Cavallo Point, The Lodge at the Golden Gate 92$10,633 $1,327 $1,828 $— $79 $3,234 
Chicago Marriott Downtown Magnificent Mile92$32,503 $6,887 $4,166 $(8)$(397)$10,648 
Courtyard Denver Downtown92$3,344 $1,393 $298 $— $— $1,691 
Courtyard New York Manhattan/Fifth Avenue92$4,191 $103 $449 $— $253 $805 
Courtyard New York Manhattan/Midtown East92$7,909 $570 $697 $970 $— $2,237 
Frenchman's Reef & Morning Star Marriott Beach Resort—$1 $(2)$— $— $— $(2)
Havana Cabana Key West92$1,996 $87 $260 $— $— $347 
Hilton Boston Downtown/Faneuil Hall92$12,504 $4,271 $1,231 $— $— $5,502 
Hilton Burlington Lake Champlain92$6,121 $2,451 $486 $— $— $2,937 
Hilton Garden Inn New York/Times Square Central92$6,508 $944 $838 $— $— $1,782 
Hotel Emblem San Francisco92$2,305 $399 $297 $— $— $696 
Hotel Palomar Phoenix92$4,325 $(424)$662 $39 $295 $572 
JW Marriott Denver Cherry Creek 92$5,907 $269 $746 $692 $6 $1,713 
Kimpton Shorebreak Resort92$5,281 $1,808 $348 $— $40 $2,196 
L'Auberge de Sedona 92$5,636 $727 $508 $— $— $1,235 
Orchards Inn Sedona92$1,598 $(11)$238 $— $42 $269 
Renaissance Charleston Historic District Hotel92$3,398 $642 $421 $— $(32)$1,031 
Salt Lake City Marriott Downtown at City Creek92$8,849 $2,368 $575 $608 $— $3,551 
The Gwen Hotel92$10,771 $3,256 $1,077 $— $— $4,333 
The Landing Lake Tahoe Resort & Spa92$4,060 $1,086 $418 $— $— $1,504 
The Lexington Hotel92$18,337 $1,319 $3,607 $6 $8 $4,940 
The Lodge at Sonoma Resort92$7,549 $2,070 $508 $281 $— $2,859 
Vail Marriott Mountain Resort92$8,109 $1,140 $1,011 $— $— $2,151 
Westin Boston Seaport District92$24,009 $2,413 $2,418 $2,182 $(60)$6,953 
Westin Fort Lauderdale Beach Resort92$8,131 $(949)$1,675 $— $— $726 
Westin San Diego Downtown92$8,654 $1,439 $1,135 $637 $— $3,211 
Westin Washington D.C. City Center92$7,829 $280 $1,310 $663 $— $2,253 
Worthington Renaissance Fort Worth Hotel92$8,488 $(132)$990 $784 $2 $1,644 
Total $240,279 $35,721 $29,474 $6,854 $1,750 $73,748 
Add: Prior Ownership Results (2)
$6,045 $1,193 $563 $— $— $1,756 
Less: Sold Hotels (3)
$(18,338)$(1,317)$(3,607)$(6)$(8)$(4,938)
Comparable Total$227,986 $35,597 $26,430 $6,848 $1,742 $70,566 
(1)    Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization favorable and unfavorable contract liabilities.
(2)     Amounts represent the pre-acquisition operating results of the Bourbon Orleans Hotel and Henderson Park Inn from July 1, 2019 to September 30, 2019.
(3)    Amounts represent the operating results of Frenchman's Reef and The Lexington Hotel.
24


Hotel Adjusted EBITDA Reconciliation
Year to Date 2021
Days of OperationTotal RevenuesNet Income / (Loss)Plus: DepreciationPlus: Interest Expense
Plus: Adjustments (1)
Equals: Hotel Adjusted EBITDA
Atlanta Marriott Alpharetta273$5,374 $(308)$1,037 $— $— $729 
Barbary Beach House Key West273$20,942 $9,049 $2,159 $— $— $11,208 
Bethesda Marriott Suites273$3,119 $(7,484)$1,570 $— $4,486 $(1,428)
Bourbon Orleans Hotel64$1,646 $(91)$543 $— $4 $456 
Cavallo Point, The Lodge at the Golden Gate 273$21,678 $885 $5,698 $— $281 $6,864 
Chicago Marriott Downtown Magnificent Mile171$22,544 $(10,294)$12,247 $54 $(1,192)$815 
Courtyard Denver Downtown273$5,042 $696 $1,135 $— $— $1,831 
Courtyard New York Manhattan/Fifth Avenue122$3,980 $(4,184)$986 $— $760 $(2,438)
Courtyard New York Manhattan/Midtown East273$11,540 $(5,226)$1,439 $2,786 $— $(1,001)
Frenchman's Reef & Morning Star Marriott Beach Resort—$— $— $— $— $— $— 
Havana Cabana Key West273$10,234 $3,990 $808 $— $— $4,798 
Henderson Park Inn63$1,813 $696 $150 $— $— $846 
Hilton Boston Downtown/Faneuil Hall273$12,399 $(2,635)$3,194 $— $— $559 
Hilton Burlington Lake Champlain273$10,485 $2,186 $1,819 $— $— $4,005 
Hilton Garden Inn New York/Times Square Central151$5,870 $(4,955)$2,444 $— $— $(2,511)
Hotel Emblem San Francisco273$1,799 $(1,660)$922 $— $— $(738)
Hotel Palomar Phoenix273$9,491 $(919)$2,027 $— $852 $1,960 
JW Marriott Denver Cherry Creek 273$13,930 $(819)$2,352 $1,983 $14 $3,530 
Kimpton Shorebreak Resort273$13,101 $3,419 $1,235 $— $— $4,654 
L'Auberge de Sedona 273$23,897 $7,810 $1,284 $— $— $9,094 
Orchards Inn Sedona273$6,492 $1,902 $246 $— $126 $2,274 
Renaissance Charleston Historic District Hotel273$13,491 $4,019 $1,378 $— $— $5,397 
Salt Lake City Marriott Downtown at City Creek273$11,495 $(206)$1,557 $1,555 $21 $2,927 
The Gwen Hotel273$15,657 $(910)$3,273 $— $— $2,363 
The Landing Lake Tahoe Resort & Spa273$8,028 $2,167 $1,268 $— $— $3,435 
The Lexington Hotel—$60 $(6,618)$1,925 $13 $16 $(4,664)
The Lodge at Sonoma Resort273$14,621 $720 $1,629 $799 $— $3,148 
Vail Marriott Mountain Resort273$18,183 $3,211 $3,019 $— $— $6,230 
Westin Boston Seaport District273$21,664 $(15,845)$7,608 $6,250 $(367)$(2,354)
Westin Fort Lauderdale Beach Resort273$35,810 $6,296 $3,217 $— $— $9,513 
Westin San Diego Downtown273$11,772 $(2,341)$2,468 $1,806 $— $1,933 
Westin Washington D.C. City Center273$4,664 $(7,625)$3,229 $1,849 $— $(2,547)
Worthington Renaissance Fort Worth Hotel273$16,379 $(4,051)$3,343 $2,246 $6 $1,544 
Total $377,200 $(29,125)$77,209 $19,341 $5,007 $72,475 
Add: Prior Ownership Results (2)
$6,406 $(425)$1,313 $— $— $888 
Less: Sold Hotels (2)
$(60)$6,618 $(1,925)$(13)$(16)$4,664 
Comparable Total$383,546 $(22,932)$76,597 $19,328 $4,991 $78,027 
(1) Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization favorable and unfavorable contract liabilities.
(2)     Amounts represent the pre-acquisition operating results of the Bourbon Orleans Hotel from January 1, 2021 to July 28, 2021 and Henderson Park Inn from January 1, 2021 to July 29, 2021.
(3)    Amounts represent the operating results of Frenchman's Reef and The Lexington Hotel.
25


Hotel Adjusted EBITDA Reconciliation
Year to Date 2020
Plus:Plus:Plus:Equals:
Days of OperationTotal RevenuesNet Income / (Loss)DepreciationInterest Expense
Adjustments (1)
Hotel Adjusted EBITDA
Atlanta Marriott Alpharetta274$4,693 $(1,183)$1,091 $— $— $(92)
Barbary Beach House Key West204$7,510 $(1,008)$2,026 $— $— $1,018 
Bethesda Marriott Suites274$3,555 $(7,790)$1,728 $— $4,522 $(1,540)
Cavallo Point, The Lodge at the Golden Gate 175$11,417 $(5,762)$5,547 $— $281 $66 
Chicago Marriott Downtown Magnificent Mile130$14,459 $(25,975)$12,559 $170 $(1,192)$(14,438)
Courtyard Denver Downtown201$2,338 $(1,167)$1,092 $— $— $(75)
Courtyard New York Manhattan/Fifth Avenue86$2,377 $(5,638)$1,111 $— $760 $(3,767)
Courtyard New York Manhattan/Midtown East274$8,670 $(6,610)$1,779 $2,875 $— $(1,956)
Frenchman's Reef & Morning Star Marriott Beach Resort—$— $— $— $— $— $— 
Havana Cabana Key West204$4,832 $368 $799 $— $— $1,167 
Hilton Boston Downtown/Faneuil Hall144$6,589 $(5,223)$3,686 $— $— $(1,537)
Hilton Burlington Lake Champlain167$2,832 $(2,666)$1,632 $— $— $(1,034)
Hilton Garden Inn New York/Times Square Central88$3,276 $(6,342)$2,536 $— $— $(3,806)
Hotel Emblem San Francisco179$2,062 $(1,434)$962 $— $— $(472)
Hotel Palomar Phoenix192$8,036 $(1,519)$2,017 $116 $865 $1,479 
JW Marriott Denver Cherry Creek 203$6,043 $(5,200)$2,124 $2,031 $18 $(1,027)
Kimpton Shorebreak Resort274$8,301 $643 $1,230 $— $27 $1,900 
L'Auberge de Sedona 274$12,643 $963 $2,000 $— $— $2,963 
Orchards Inn Sedona229$2,655 $(387)$377 $— $126 $116 
Renaissance Charleston Historic District Hotel236$5,101 $(732)$1,279 $— $(85)$462 
Salt Lake City Marriott Downtown at City Creek274$8,666 $(2,524)$1,663 $1,712 $— $851 
The Gwen Hotel203$6,872 $(5,790)$3,327 $— $— $(2,463)
The Landing Lake Tahoe Resort & Spa200$6,664 $903 $1,251 $— $— $2,154 
The Lexington Hotel88$8,857 $(19,230)$9,107 $18 $24 $(10,081)
The Lodge at Sonoma Resort172$5,934 $(4,159)$1,375 $822 $— $(1,962)
Vail Marriott Mountain Resort190$16,413 $472 $3,348 $— $— $3,820 
Westin Boston Seaport District112$17,551 $(19,193)$7,762 $6,405 $(180)$(5,206)
Westin Fort Lauderdale Beach Resort274$23,075 $1,659 $3,263 $— $— $4,922 
Westin San Diego Downtown274$11,684 $(3,383)$3,385 $1,861 $— $1,863 
Westin Washington D.C. City Center274$6,022 $(8,319)$3,958 $1,925 $— $(2,436)
Worthington Renaissance Fort Worth Hotel274$11,314 $(6,490)$3,383 $2,302 $6 $(799)
Total $240,441 $(142,716)$87,397 $20,237 $5,172 $(29,907)
Add: Prior Ownership Results (2)
$8,435 $(415)$1,688 $— $— $1,273 
Less: Sold Hotels (3)
$(8,857)$19,230 $(9,107)$(18)$(24)$10,081 
Comparable Total$240,019 $(123,901)$79,978 $20,219 $5,148 $(18,553)
(1)    Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization favorable and unfavorable contract liabilities.
(2)     Amounts represent the pre-acquisition operating results of the Bourbon Orleans Hotel and Henderson Park Inn from January 1, 2020 to September 30, 2020.
(3)    Amounts represent the operating results of Frenchman's Reef and The Lexington Hotel.
26


Hotel Adjusted EBITDA Reconciliation
Year to Date 2019
Plus:Plus:Plus:Equals:
Days of OperationTotal RevenuesNet Income / (Loss)DepreciationInterest Expense
Adjustments (1)
Hotel Adjusted EBITDA
Atlanta Marriott Alpharetta273$14,959 $3,891 $1,389 $— $— $5,280 
Barbary Beach House Key West273$12,906 $3,557 $1,033 $— $— $4,590 
Bethesda Marriott Suites273$13,051 $(2,031)$1,422 $— $4,555 $3,946 
Cavallo Point, The Lodge at the Golden Gate 273$30,600 $2,374 $5,557 $— $221 $8,152 
Chicago Marriott Downtown Magnificent Mile273$83,224 $12,127 $12,461 $110 $(1,192)$23,506 
Courtyard Denver Downtown273$8,881 $3,407 $881 $— $— $4,288 
Courtyard New York Manhattan/Fifth Avenue273$11,417 $(519)$1,330 $— $760 $1,571 
Courtyard New York Manhattan/Midtown East273$21,213 $(70)$2,077 $2,891 $— $4,898 
Frenchman's Reef & Morning Star Marriott Beach Resort—$— $8,798 $— $— $— $8,798 
Havana Cabana Key West273$7,351 $2,035 $740 $— $— $2,775 
Hilton Boston Downtown/Faneuil Hall273$32,337 $9,124 $3,708 $— $— $12,832 
Hilton Burlington Lake Champlain273$14,031 $3,917 $1,500 $— $— $5,417 
Hilton Garden Inn New York/Times Square Central273$18,222 $1,731 $2,509 $— $— $4,240 
Hotel Emblem San Francisco273$5,649 $323 $868 $— $— $1,191 
Hotel Palomar Phoenix273$18,008 $2,319 $1,991 $116 $885 $5,311 
JW Marriott Denver Cherry Creek 273$14,380 $(944)$1,975 $2,062 $18 $3,111 
Kimpton Shorebreak Resort273$13,704 $3,586 $1,046 $— $121 $4,753 
L'Auberge de Sedona 273$19,259 $3,688 $1,525 $— $— $5,213 
Orchards Inn Sedona273$5,890 $884 $713 $— $126 $1,723 
Renaissance Charleston Historic District Hotel273$11,566 $3,438 $1,242 $— $(95)$4,585 
Salt Lake City Marriott Downtown at City Creek273$23,586 $5,120 $1,680 $1,818 $— $8,618 
The Gwen Hotel273$25,709 $4,030 $3,285 $— $— $7,315 
The Landing Lake Tahoe Resort & Spa273$7,618 $294 $1,179 $— $— $1,473 
The Lexington Hotel273$47,872 $(1,778)$10,697 $17 $24 $8,960 
The Lodge at Sonoma Resort273$19,023 $3,234 $1,571 $840 $— $5,645 
Vail Marriott Mountain Resort273$27,989 $6,063 $3,035 $— $— $9,098 
Westin Boston Seaport District273$70,991 $6,286 $7,266 $6,506 $(180)$19,878 
Westin Fort Lauderdale Beach Resort273$38,246 $7,223 $4,853 $— $— $12,076 
Westin San Diego Downtown273$26,333 $4,769 $3,397 $1,901 $— $10,067 
Westin Washington D.C. City Center273$25,238 $2,075 $3,948 $1,986 $— $8,009 
Worthington Renaissance Fort Worth Hotel273$31,319 $5,597 $2,927 $2,340 $6 $10,870 
Total $700,572 $104,548 $87,805 $20,587 $5,249 $218,028 
Add: Prior Ownership Results (2)
$19,194 $4,619 $1,688 $— $— $6,307 
Less: Sold Hotels (3)
$(47,872)$(7,020)$(10,697)$(17)$(24)$(17,758)
Comparable Total$671,894 $102,147 $78,796 $20,570 $5,225 $206,577 
(1)    Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization favorable and unfavorable contract liabilities.
(2)     Amounts represent the pre-acquisition operating results of the Bourbon Orleans Hotel and Henderson Park Inn from January 1, 2019 to September 30, 2019.
(3)    Amounts represent the operating results of Frenchman's Reef and The Lexington Hotel.
27