PR Newswire | Aug 5, 2021 04:11PM EDT

08/05 15:09 CDT

DiamondRock Hospitality Company Reports Second Quarter ResultsCash Flow Positive Throughout Second QuarterAcquires Bourbon Orleans Hotel in New Orleans and Henderson Park Inn in Destin, Florida BETHESDA, Md., Aug. 5, 2021

BETHESDA, Md., Aug. 5, 2021 /PRNewswire/ -- 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 June 30, 2021.

Second Quarter 2021 Highlights:

* Net Loss: Net loss was $19.1 million and loss per diluted share was $0.10. * Comparable Revenues: Comparable total revenues increased 514.8% from the second quarter of 2020. * Comparable RevPAR: Comparable RevPAR was $107.56, an increase of 563.1% from second quarter of 2020. * Comparable Hotel Adjusted EBITDA: Comparable Hotel Adjusted EBITDA was $29.0 million, a $31.6 million improvement from the first quarter of 2021. * Adjusted EBITDA: Adjusted EBITDA was $19.8 million, a $29.4 million increase from the first quarter of 2021. * Adjusted FFO: Adjusted FFO was $11.1 million and Adjusted FFO per diluted share was $0.05. * Liquidity: The Company ended the second quarter with $638.9 million total liquidity comprised of $192.9 million of unrestricted corporate cash, $46.0 million of unrestricted cash at its hotels and full capacity under the Company's $400 million revolving credit facility. The Company has remained cash flow positive since March 2021. * Dispositions: On April 30, 2021, the Company sold the partially rebuilt Frenchman's Reef Marriott Resort & Spa and Noni Beach, Autograph Collection project in St. Thomas, U.S.V.I. (collectively, "Frenchman's Reef"). On June 30, 2021, the Company sold the Lexington Hotel New York for $185.3 million.

Recent Developments:

* Hotel Acquisitions: The Company acquired the Bourbon Orleans Hotel in New Orleans, Louisiana on July 29, 2021 and the Henderson Park Inn in Destin, Florida on July 30, 2021. These acquisitions are consistent with the Company's portfolio strategy to invest in high-quality, leisure-oriented properties located in high barrier-to-entry markets. These acquisitions increase the Company's exposure to resort and leisure-oriented hotels to 34.0%. * Preliminary July Results: Preliminary RevPAR for July was $166.05, a 373.6% increase from July 2020 and a 11.8% decline from July 2019. Preliminary July ADR was $239.81, a 15.8% increase over July 2020 and a 5.1% increase over July 2019.

"The second quarter demonstrated a rapid return of travel demand and exceeded our internal expectations" said Mark W. Brugger, President and Chief Executive Officer of DiamondRock Hospitality Company. "The majority of our portfolio turned cash flow positive during the quarter and we now expect DiamondRock to be cash flow positive for the full year 2021. In addition to stronger than expected profits, we have made significant portfolio enhancements to position the Company for a strong recovery as travel demand continues to improve. Earlier this year, we sold our development project in the U.S. Virgin Islands and a challenging hotel in New York City and redeployed a portion of those proceeds into one of the best located boutique hotels in the French Quarter of New Orleans and a lifestyle beachfront resort in Destin, Florida. With our strong balance sheet, DiamondRock is focused on external growth as well as internal return-on-investment opportunities like the upbrandings at our Vail and Sonoma resorts."

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 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 June 30, Change From

2021 2020 2019 2020 2019

($ amounts in millions, except hotel statistics and per share amounts)

Comparable Operating Results ^(1)

ADR $221.79 $175.76 $248.50 26.2 %(10.7) %

Occupancy 48.5 %9.2 %82.3 %39.3 %(33.8) %

RevPAR $107.56 $16.22 $204.41 563.1 %(47.4) %

Total RevPAR $154.45 $25.16 $296.90 513.9 %(48.0) %

Revenues $124.8 $20.3 $239.6 514.8 %(47.9) %

Hotel Adjusted EBITDA $29.0 $(26.8) $83.5 208.2 %(65.3) %

Hotel Adjusted EBITDA 23.27 %(131.63)%34.82 %15,490 (1,155) Margin bps bps

Available Rooms 807,869 807,625 807,170 244 699



Actual Operating Results

Revenues $124.8 $20.4 $257.9 511.8 %(51.6) %

Net (loss) income $(19.1) $(73.4) $29.1 74.0 %(165.6)%

(Loss) income per $(0.10) $(0.36) $0.14 72.2 %(171.4)%diluted share

Adjusted EBITDA $19.8 $(37.0) $81.1 153.5 %(75.6) %

Adjusted FFO $11.1 $(41.0) $65.1 127.1 %(82.9) %

Adjusted FFO per diluted$0.05 $(0.20) $0.32 125.0 %(84.4) %share

The amounts for all periods presented exclude the two hotels sold during(1) 2021, Frenchman's Reef and The Lexington Hotel, and does not adjust for hotels that have suspended operations.

Six Months Ended June 30, Change From

2021 2020 2019 2020 2019

($ amounts in millions, except hotel statistics and per share amounts)

Comparable Operating Results ^(1)

ADR $219.95 $213.39 $234.54 3.1 %(6.2) %

Occupancy 38.9 %34.1 %77.5 %4.8 %(38.6) %

RevPAR $85.46 $72.72 $181.66 17.5 %(53.0) %

Total RevPAR $123.03 $112.47 $268.35 9.4 %(54.2) %

Revenues $197.7 $181.7 $430.8 8.8 %(54.1) %

Hotel Adjusted $29.7 $(5.2) $131.5 671.2 %(77.4) %EBITDA

Hotel Adjusted 15.02 %(2.88) %30.52 %1,790 bps(1,550) EBITDA Margin bps

Available Rooms 1,606,709 1,615,250 1,605,184 (8,541) 1,525



Actual Operating Results

Revenues $197.7 $190.4 $460.3 3.8 %(57.0) %

Net (loss) income $(190.7) $(108.1) $38.1 (76.4) %(600.5)%

(Loss) income per $(0.92) $(0.53) $0.19 (73.6) %(584.2)%diluted share

Adjusted EBITDA $10.2 $(25.2) $130.2 140.5 %(92.2) %

Adjusted FFO $(13.7) $(32.6) $107.1 58.0 %(112.8)%

Adjusted FFO per $(0.06) $(0.16) $0.53 62.5 %(111.3)%diluted share

The amounts for all periods presented exclude the two hotels sold during(1) 2021, Frenchman's Reef and The Lexington Hotel, and does not adjust for hotels that have suspended operations.

Hotel Operations

The following tables provide operating information for the six months ended June 30, 2021 and preliminary operating information for July 2021:

January February 2021March April May 2021 June 2021Preliminary 2021 2021 2021 July 2021

Comparable Operating Results ^(1)

Number of29 29 29 29 29 29 29 Hotels

Number of8,878 8,878 8,878 8,878 8,878 8,878 8,878 Rooms

Occupancy21.7 %29.6 % 36.1 %39.1 %47.5 %59.0 %69.2 %

ADR $192.00 $215.29 $232.94 $224.72 $220.61 $220.83 $239.81

RevPAR $41.61 $63.72 $84.05 $87.81 $104.77 $130.20 $166.05

Total $62.45 $93.83 $117.72 $128.41 $153.20 $181.77 $228.84 RevPAR

2021 vs 2019 ^(1)

Occupancy(4,227) (4,306) (4,213) (3,270) (2,648) change inbps (4,532) bps bps bps bps bps (1,333) bpsbps

ADR Rate (4.3) %(0.2) % (1.1) %(7.5) %(12.7) %(11.6) %5.1 %% change

RevPAR % (67.6) %(60.6) % (54.9) %(55.5) %(48.3) %(39.0) %(11.8) %change

Total RevPAR % (68.5) %(62.0) % (57.0) %(55.0) %(48.8) %(40.5) %(13.3) %change

The amounts for all periods presented exclude the two hotels sold during(1) 2021, Frenchman's Reef and The Lexington Hotel, and does not adjust for hotels that have suspended operations.

On January 3, 2021, the Company suspended operations at the Chicago Marriott Downtown Magnificent Mile due to lack of travel demand and new governmental restrictions put in place. The hotel was reopened on April 15, 2021. Following the reopening of the Hilton Garden Inn New York/Times Square Central on May 3, 2021 and the Courtyard New York Manhattan/Fifth Avenue on June 1, 2021, all of the Company's hotels are now open. The Company will continue to aggressively manage costs at all of its hotels and ensure appropriate cleanliness and safety protocols. The Company is carefully monitoring demand trends and adjusted sales strategies and staffing to respond rapidly in a changing environment.

Hotel Dispositions

On June 30, 2021, the Company sold The Lexington Hotel New York for $185.3 million. Including the Company's projected capital expenditures, the sale price represents a 14.2x multiple on 2019 Hotel EBITDA and a 5.4% capitalization rate on 2019 hotel net operating income. The sale reduced the Company's exposure to New York City by almost 48% based on number of rooms. Also in the second quarter, the Company completed the sale of Frenchman's Reef, a partially rebuilt resort in the US Virgin Islands, for $35.0 million in cash consideration, as well as a participation right in the future profits of the hotel once certain return metrics are achieved. The projected cost to complete the rebuild project exceeded $170 million. These two sales combined created significant investment capacity for the Company to pursue its external growth strategy.

Capital Expenditures

The Company invested approximately $16.9 million in capital improvements at its operating hotels during the six months ended June 30, 2021. The Company spent approximately $2.7 million on the rebuild of Frenchman's Reef during the six months ended June 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. The renovation includes a new restaurant by celebrity chef Michael Mina. * Vail Marriott Mountain Resort: The Company plans to complete 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. * JW Marriott Denver Cherry Creek: The Company plans to complete renovations in the second half of 2021 to rebrand the hotel as Hotel Clio, a Luxury Collection Hotel at the start of 2022. * Margaritaville Beach House Key West: The Company plans to invest $3 million to convert the Barbary Beach House Key West to the Margaritaville Beach Resort Key West in the fall of 2021.

Balance Sheet and Liquidity

As of June 30, 2021, the Company's liquidity was $638.9 million and is comprised of $192.9 million of unrestricted corporate cash, $46.0 million of unrestricted cash at its hotels and $400.0 million of capacity on its senior unsecured credit facility. As of June 30, 2021, the Company had $1.0 billion of total debt outstanding, which consisted of $590.1 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. The acquisitions of the Bourbon Orleans and the Henderson Park Inn were funded by unrestricted corporate cash on hand.

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 June 18, 2021. This dividend was paid on June 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 second quarter results on Friday, August 6, 2021, at 8:00 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 1363067. 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 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.

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



June 30, December 31, 2021 2020

ASSETS (unaudited)

Property and equipment, net $2,439,555$2,817,356

Right-of-use assets 99,982 96,673

Restricted cash 26,686 23,050

Due from hotel managers 89,326 69,495

Prepaid and other assets ^(1) 20,582 28,403

Cash and cash equivalents 192,942 111,796

Total assets $2,869,073$3,146,773

LIABILITIES AND EQUITY

Liabilities:

Mortgage and other debt, net of unamortized debt $587,972 $595,149 issuance costs

Unsecured term loans, net of unamortized debt 398,275 398,550 issuance costs

Senior unsecured credit facility - 55,000

Total debt 986,247 1,048,699



Lease liabilities 106,480 104,973

Deferred rent 58,633 56,344

Due to hotel managers 86,071 95,548

Unfavorable contract liabilities, net 63,916 64,796

Accounts payable and accrued expenses ^(2) 33,502 46,542

Deferred income related to key money, net 7,809 10,946

Total liabilities 1,342,658 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 per48 48 share), 4,760,000 shares issued and outstanding at June 30, 2021 and December 31, 2020

Common stock, $0.01 par value; 400,000,000 shares authorized; 210,303,850 and 210,073,514 shares 2,103 2,101 issued and outstanding at June 30, 2021 and December 31, 2020, respectively

Additional paid-in capital 2,288,070 2,285,491

Accumulated deficit (771,318) (576,531)

Total stockholders' equity 1,518,903 1,711,109

Noncontrolling interests 7,512 7,816

Total equity 1,526,415 1,718,925

Total liabilities and equity $2,869,073$3,146,773

Includes $9.0 million and $10.7 million of prepaid expenses and $11.6^ million and $15.3 million of other assets as of June 30, 2021 and December(1) 31, 2020, respectively, and $2.4 million of insurance receivables as of December 31, 2020.

Includes $11.6 million and $15.2 million of accrued property taxes, $2.5^ million and $3.9 million of accrued capital expenditures and $19.4 million(2) and $24.8 million of other accrued liabilities as of June 30, 2021 and December 31, 2020, respectively, and $2.6 million of deferred tax liabilities as of December 31, 2020.

DIAMONDROCK HOSPITALITY COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) (unaudited)



Three Months Ended June Six Months Ended June 30, 30,

2021 2020 2021 2020

Revenues:

Rooms $ 86,896 $ 13,099 $137,308 $124,900

Food and beverage 25,614 3,038 39,539 46,943

Other 12,281 4,242 20,881 18,531

Total revenues 124,791 20,379 197,728 190,374

Operating Expenses:

Rooms 21,466 7,143 35,294 42,796

Food and beverage 19,573 4,715 31,134 35,802

Management fees 2,291 (78) 3,410 3,399

Franchise fees 3,735 793 6,182 6,589

Other hotel expenses 51,874 40,720 100,809 118,563

Depreciation and 24,692 28,783 51,654 58,883 amortization

Impairment losses 4,145 - 126,697 -

Corporate expenses 8,290 6,826 15,449 12,383

Total operating 136,066 88,902 370,629 278,415 expenses, net



Interest and other (315) (150) (471) 249 (income) expense, net

Interest expense 10,710 11,629 19,194 32,847

Total other 10,395 11,479 18,723 33,096 expenses, net

Loss before income (21,670) (80,002) (191,624) (121,137) taxes

Income tax benefit 2,551 6,615 938 13,058

Net loss (19,119) (73,387) (190,686) (108,079)

Less: Net loss attributable to 86 605 806 738 noncontrolling interests

Net loss attributable (19,033) (72,782) (189,880) (107,341) to the Company

Distributions to (2,454) - (4,908) - preferred stockholders

Net loss attributable $ (21,487)$ (72,782)$(194,788)$(107,341)to common stockholders

Loss per share:

Net loss per share available to common $ (0.10) $ (0.36) $(0.92) $(0.53) stockholders - basic

Net loss per share available to common $ (0.10) $ (0.36) $(0.92) $(0.53) stockholders - diluted



Weighted-average number of common shares outstanding:

Basic 211,966,308200,797,317211,819,758201,002,576

Diluted 211,966,308200,797,317211,819,758201,002,576

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.

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.

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 June 30,

2021 2020 2019

Net (loss) income $(19,119)$(73,387)$29,074

Interest expense 10,710 11,629 12,418

Income tax (benefit) expense (2,551) (6,615) 4,571

Real estate related depreciation and 24,692 28,783 29,335 amortization

EBITDA 13,732 (39,590) 75,398

Impairment losses 4,145 - -

EBITDAre 17,877 (39,590) 75,398

Non-cash lease expense and other 1,671 1,708 1,784 amortization

Professional fees and pre-opening costs 478 122 3,700 related to Frenchman's Reef ^(1)

Hotel manager transition items - 334 171

Severance costs ^(2) (226) 393 -

Adjusted EBITDA $19,800 $(37,033)$81,053

Six Months Ended June 30,

2021 2020 2019

Net (loss) income $(190,686)$(108,079)$38,054

Interest expense 19,194 32,847 24,080

Income tax (benefit) expense (938) (13,058) 722

Real estate related depreciation and 51,654 58,883 58,331 amortization

EBITDA (120,776) (29,407) 121,187

Impairment losses 126,697 - -

EBITDAre 5,921 (29,407) 121,187

Non-cash lease expense and other 3,343 3,458 3,499 amortization

Professional fees and pre-opening 1,053 (175) 5,067 costs related to Frenchman's Reef ^(1)

Hotel manager transition items 128 561 468

Severance costs ^(2) (216) 393 -

Adjusted EBITDA $10,229 $(25,170) $130,221

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(1) Frenchman's Reef as a result of Hurricane Irma that are not covered by insurance.

^ Consists of severance costs incurred with the elimination of positions at(2) our hotels, which are classified within other hotel expenses on the consolidated statement of operations.

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 June 30,

2021 2020 2019

Net (loss) income $(19,119)$(73,387)$29,074

Interest expense 10,710 11,629 12,418

Income tax (benefit) expense (2,551) (6,615) 4,571

Real estate related depreciation and 24,692 28,783 29,335 amortization

EBITDA 13,732 (39,590) 75,398

Corporate expenses 8,290 6,826 7,403

Interest and other (income) expense, net (315) (150) (105)

Professional fees and pre-opening costs 478 122 3,700 related to Frenchman's Reef ^(1)

Impairment losses 4,145 - -

Hotel EBITDA 26,330 (32,792) 86,396

Non-cash lease expense and other 1,671 1,708 1,784 amortization

Hotel manager transition items - 334 171

Severance costs ^(2) (226) 393 -

Hotel Adjusted EBITDA $27,775 $(30,357)$88,351

Six Months Ended June 30,

2021 2020 2019

Net (loss) income $(190,686)$(108,079)$38,054

Interest expense 19,194 32,847 24,080

Income tax (benefit) expense (938) (13,058) 722

Real estate related depreciation and 51,654 58,883 58,331 amortization

EBITDA (120,776) (29,407) 121,187

Corporate expenses 15,449 12,383 14,467

Interest and other (income) expense, (471) 249 (408) net

Professional fees and pre-opening 1,053 (175) 5,067 costs related to Frenchman's Reef ^(1)

Impairment losses 126,697 - -

Hotel EBITDA 21,952 (16,950) 140,313

Non-cash lease expense and other 3,343 3,458 3,499 amortization

Hotel manager transition items 128 561 468

Severance costs ^(2) (216) 393 -

Hotel Adjusted EBITDA $25,207 $(12,538) $144,280

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(1) Frenchman's Reef as a result of Hurricane Irma that are not covered by insurance.

^ Consists of severance costs incurred with the elimination of positions at(2) our hotels, which are classified within other hotel expenses on the consolidated statement of operations.

FFO and Adjusted FFO

The following tables are reconciliations of our GAAP net income to FFO and Adjusted FFO (in thousands):

Three Months Ended June 30,

2021 2020 2019

Net (loss) income $(19,119)$(73,387)$29,074

Real estate related depreciation and 24,692 28,783 29,335 amortization

Impairment losses, net of tax 6,945 - -

FFO 12,518 (44,604) 58,409

Distribution to preferred stockholders (2,454) - -

FFO available to common stock and unit 10,064 (44,604) 58,409 holders

Non-cash lease expense and other 1,671 1,708 1,784 amortization

Professional fees and pre-opening costs 478 122 3,700 related to Frenchman's Reef ^ (1)

Hotel manager transition items - 334 171

Severance costs ^(2) (226) 393 -

Fair value adjustments to interest rate (838) 1,000 1,075 swaps

Adjusted FFO available to common stock and $11,149 $(41,047)$65,139unit holders

Adjusted FFO available to common stock and $0.05 $(0.20) $0.32 unit holders, per diluted share

Six Months Ended June 30,

2021 2020 2019

Net (loss) income $(190,686)$(108,079)$38,054

Real estate related depreciation and 51,654 58,883 58,331 amortization

Impairment losses, net of tax 129,497 - -

FFO (9,535) (49,196) 96,385

Distribution to preferred stockholders(4,908) - -

FFO available to common stock and unit(14,443) (49,196) 96,385 holders

Non-cash lease expense and other 3,343 3,458 3,499 amortization

Professional fees and pre-opening costs related to Frenchman's Reef ^ 1,053 (175) 5,067 (1)

Hotel manager transition items 128 561 468

Severance costs ^(2) (216) 393 -

Fair value adjustments to interest (3,569) 12,312 1,647 rate swaps

Adjusted FFO available to common stock$(13,704) $(32,647) $107,066and unit holders

Adjusted FFO available to common stock$(0.06) $(0.16) $0.53 and unit holders, per diluted share

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(1) Frenchman's Reef as a result of Hurricane Irma that are not covered by insurance.

^ Consists of severance costs incurred with the elimination of positions at(2) our hotels, which are classified within other hotel expenses on the consolidated statement of operations.

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 June 30,

2021 2020 2019

Revenues $124,791 $20,379 $257,918

Hotel revenues from sold hotels ^(1) (18) (56) (18,275)

Comparable Revenues $124,773 $20,323 $239,643



Hotel Adjusted EBITDA $27,775 $(30,357) $88,351

Hotel Adjusted EBITDA from sold hotels 1,263 3,600 (4,895) ^(1)

Comparable Hotel Adjusted EBITDA $29,038 $(26,757) $83,456



Hotel Adjusted EBITDA Margin 22.26 %(148.96) %34.26 %

Comparable Hotel Adjusted EBITDA Margin23.27 %(131.66) %34.83 %

Six Months Ended June 30,

2021 2020 2019

Revenues $197,728 $190,374 $460,293

Hotel revenues from sold hotels ^(1) (60) (8,703) (29,534)

Comparable Revenues $197,668 $181,671 $430,759



Hotel Adjusted EBITDA $25,207 $(12,538) $144,280

Hotel Adjusted EBITDA from sold hotels 4,486 7,303 (12,815) ^(1)

Comparable Hotel Adjusted EBITDA $29,693 $(5,235) $131,465



Hotel Adjusted EBITDA Margin 12.75 %(6.59) %31.35 %

Comparable Hotel Adjusted EBITDA Margin15.02 %(2.88) %30.52 %

^(1) Amounts represent the operating results of Frenchman's Reef and The Lexington Hotel.

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, Quarter 2, Quarter 3, Quarter 4, Full Year 2019 2019 2019 2019 2019

ADR $219.47 $248.90 $236.57 $241.30 $237.05

Occupancy 72.7 %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 $197,032 $246,875 $227,987 $222,692 $894,586 thousands)

Hotel Adjusted EBITDA (in $49,794 $86,216 $70,566 $65,256 $271,832 thousands)

Hotel Adjusted 25.27 %34.92 %30.95 %29.30 %30.39 %EBITDA Margin

Available Rooms 820,964 830,375 839,960 839,960 3,331,259

Quarter 1, Quarter 2, Quarter 3, Quarter 4, Full Year 2020 2020 2020 2020 2020

ADR $220.21 $182.83 $209.07 $204.26 $211.78

Occupancy 58.9 %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 $166,112 $21,677 $52,231 $60,760 $300,780 thousands)

Hotel Adjusted EBITDA (in $22,901 $(27,200) $(14,259) $(4,727) $(23,285) thousands)

Hotel Adjusted13.79 %(125.48) %(27.30) %(7.78) %(7.74) %EBITDA Margin

Available 830,830 830,830 839,960 839,960 3,341,580 Rooms

Quarter 1, 2021 Quarter 2, 2021

ADR $ 217.87 $ 221.73

Occupancy 28.6 % 48.3 %

RevPAR $ 62.25 $ 107.09

Total RevPAR $ 90.13 $ 153.37

Revenues (in thousands) $ 74,064 $ 127,459

Hotel Adjusted EBITDA (in thousands)$ (58) $ 29,569

Hotel Adjusted EBITDA Margin (0.08) % 23.20 %

Available Rooms 821,790 831,074

Market Capitalization as of June 30, 2021

(in thousands)

Enterprise Value



Common equity capitalization (at June 30, 2021 closing price of$2,070,237$9.70/share)

Preferred equity capitalization (at liquidation value of $25.00119,000 /share)

Consolidated debt (face amount) 990,141

Cash and cash equivalents (192,942)

Total enterprise value $2,986,436

Share Reconciliation



Common shares outstanding 210,304

Operating partnership units 956

Unvested restricted stock held by management and employees 1,424

Share grants under deferred compensation plan 1,698

Combined shares and units 214,382

Debt Summary as of June 30, 2021

(dollars in thousands)

Loan Interest Rate as Term Outstanding Maturity of June 30, 2021 Principal

Salt Lake City Marriott Downtown at City Creek LIBOR + 3.25 ^(1) Variable46,350 January 2022 ^(2)

Westin Washington D.C. City Center 3.99% Fixed 57,106 January 2023

The Lodge at Sonoma Resort 3.96% Fixed 25,966 April 2023

Westin San Diego Downtown 3.94% Fixed 59,436 April 2023

Courtyard New York Manhattan / Midtown East 4.40% Fixed 78,713 August 2024

Worthington Renaissance Fort Worth Hotel 3.66% Fixed 78,338 May 2025

JW Marriott Denver Cherry Creek 4.33% Fixed 59,423 July 2025

Westin Boston Seaport District 4.36% Fixed 184,809 November 2025

Unamortized debt issuance costs (2,169)

Total mortgage and other debt, net of unamortized debt issuance costs 587,972



Unsecured term loan LIBOR + 2.40% ^(3)Variable350,000 July 2024

Unsecured term loan LIBOR + 2.40% ^(4)Fixed 50,000 October 2023

Unamortized debt issuance costs (1,725)

Unsecured term loans, net of unamortized debt issuance costs 398,275



Senior unsecured credit facility LIBOR + 2.55% ^(5)Variable- July 2023 ^(6)



Total debt, net of unamortized debt issuance costs $986,247

Weighted-average interest rate of fixed rate debt 4.25 %

Total weighted-average interest rate 3.97 %



^ LIBOR is subject to a floor of 1.0%.(1)

^ The loan may be extended for an additional year upon satisfaction of(2) certain conditions.

^ The Company entered into an interest rate swap agreement in July 2019 to(3) fix LIBOR at 1.70% for $175 million of the term loan through July 2024. LIBOR is subject to a floor of 0.25%.

^ The Company entered into an interest rate swap agreement in January 2019 to(4) fix LIBOR at 2.41% through October 2023.

^ LIBOR is subject to a floor of 0.25%. (5)

^ May be extended for an additional year upon the payment of applicable fees(6) and the satisfaction of certain customary conditions.

Monthly Operating Statistics^ (1)

NumberADR Occupancy RevPAR of Rooms April April B/(W) April AprilB/(W) April April B/(W) 2021 2020 2020 2021 2020 2020 2021 2020 2020



Total Open for Entire Period - 26 Hotels7,207$226.38$123.0384.0 %47.1%7.2%39.9%$106.52$8.901,096.9%



Resorts - 12 Hotels 2,215$343.72$65.76 422.7%64.3%6.3%58.0%$220.87$4.145,235.0%



Total - 29 Hotels 8,878$224.72$122.8283.0 %39.1%5.9%33.2%$87.81 $7.211,117.9%

NumberApril April B/(W) April April B/(W) April April B/(W) of 2021 2019 2019 2021 2019 2019 2021 2019 2019 Rooms



Total Open for Entire Period - 26 Hotels7,207$226.38$245.39(7.7)%47.1%81.0%(33.9)%$106.52$198.70(46.4)%



Resorts - 12 Hotels 2,215$343.72$282.9421.5 %64.3%75.0%(10.7)%$220.87$212.274.1 %



Total - 29 Hotels 8,878$224.72$242.97(7.5)%39.1%81.2%(42.1)%$87.81 $197.31(55.5)%

Number B/(W) May May B/(W) B/(W) of May 2021 May 2020 2020 2021 2020 2020 May 2021 May 20202020 Rooms





Total Open for Entire Period - 27 Hotels8,407 $223.63$182.4122.6 %48.4%8.1 %40.3 %$108.27$14.78632.5%



Resorts - 12 Hotels 2,215 $364.83$274.3233.0 %60.3%7.7 %52.6 %$220.15$21.01947.8%



Total - 29 Hotels 8,878 $220.61$182.3921.0 %47.5%7.7 %39.8 %$104.77$13.99648.9%

Number of May 2021 May 2019 B/(W) May May B/(W) May 2021 May 2019 B/(W) Rooms 2019 2021 2019 2019 2019





Total Open for Entire Period - 27 Hotels8,407 $223.63$250.67(10.8)%48.4%79.4%(31.0)%$108.27$198.92(45.6)%



Resorts - 12 Hotels 2,215 $364.83$268.2136.0 %60.3%71.3%(11.0)%$220.15$191.2515.1 %



Total - 29 Hotels 8,878 $220.61$252.56(12.7)%47.5%80.2%(32.7)%$104.77$202.54(48.3)%

Number June 2021June 2020B/(W) June June B/(W) June 2021June B/(W) of Rooms 2020 2021 2020 2020 2020 2020





Total Open for Entire Period - 29 Hotels8,878 $220.83$193.9613.9 %59.0 %14.2 %44.8 %$130.20$27.53372.9%



Resorts - 12 Hotels 2,215 $347.29$246.7440.8 %70.4 %25.9 %44.5 %$244.35$63.86282.6%

Number of June 2021June 2019B/(W) June June B/(W) June 2021June 2019B/(W) Rooms 2019 2021 2019 2019 2019





Total Open for Entire Period - 29 Hotels8,878 $220.83$249.81(11.6)%59.0%85.4%(26.4)%$130.20$213.44(39.0)%



Resorts - 12 Hotels 2,215 $347.29$244.5842.0 %70.4%78.7%(8.3) %$244.35$192.5226.9 %

Operating Statistics - Second Quarter

ADR Occupancy RevPAR Number of Rooms 2Q 2021 2Q 2020 B/(W) 2Q 2Q B/(W) 2Q 2021 2Q 2020 B/(W) 2020 2021 2020 2020 2020





Atlanta Marriott Alpharetta 318 $102.97$120.47 (14.5)%49.4%6.8 %42.6 %$50.82 $8.14 524.3 %

Barbary Beach House Key West 186 $416.33$217.38 91.5 %96.1%11.3%84.8 %$400.05$24.64 1,523.6%

Bethesda Marriott Suites 272 $106.48$137.27 (22.4)%32.0%4.3 %27.7 %$34.07 $5.96 471.6 %

Cavallo Point, The Lodge at the Golden Gate 142 $591.42$496.03 19.2 %45.4%0.5 %44.9 %$268.80$2.69 9,892.6%

Courtyard Denver Downtown 177 $130.97$103.98 26.0 %65.5%5.6 %59.9 %$85.82 $5.84 1,369.5%

Courtyard New York Manhattan/Midtown East 321 $159.76$141.61 12.8 %81.7%75.8%5.9 %$130.51$107.3321.6 %

Havana Cabana Key West 106 $300.11$195.05 53.9 %97.0%16.6%80.4 %$291.21$32.37 799.6 %

Hilton Boston Downtown/Faneuil Hall 403 $161.64$- 100.0 %54.5%- %54.5 %$88.05 $- 100.0 %

Hilton Burlington Lake Champlain 258 $190.76$- 100.0 %61.7%- %61.7 %$117.78$- 100.0 %

Hotel Emblem San Francisco 96 $145.08$127.09 14.2 %37.8%0.7 %37.1 %$54.77 $0.89 6,053.9%

Hotel Palomar Phoenix 242 $158.11$121.27 30.4 %60.6%3.5 %57.1 %$95.78 $4.21 2,175.1%

JW Marriott Denver Cherry Creek 199 $248.86$206.39 20.6 %68.4%6.8 %61.6 %$170.32$13.96 1,120.1%

Kimpton Shorebreak Resort 157 $302.65$190.15 59.2 %74.4%49.6%24.8 %$225.22$94.27 138.9 %

L'Auberge de Sedona 88 $997.93$594.35 67.9 %89.0%36.7%52.3 %$888.40$217.83307.8 %

Orchards Inn Sedona 70 $334.13$193.50 72.7 %81.4%19.2%62.2 %$271.81$37.06 633.4 %

Renaissance Charleston Historic District Hotel167 $328.57$177.89 84.7 %90.5%15.0%75.5 %$297.43$26.67 1,015.2%

Salt Lake City Marriott Downtown at City Creek510 $131.56$128.69 2.2 %42.8%4.6 %38.2 %$56.29 $5.93 849.2 %

The Gwen Hotel 311 $232.02$207.55 11.8 %50.9%2.6 %48.3 %$118.16$5.44 2,072.1%

The Landing Lake Tahoe Resort & Spa 82 $437.62$344.41 27.1 %58.6%19.0%39.6 %$256.64$65.40 292.4 %

The Lodge at Sonoma Resort 182 $314.26$- 100.0 %69.9%- %69.9 %$219.71$- 100.0 %

Vail Marriott Mountain Resort 344 $237.42$(90.74)361.6 %18.7%2.7 %16.0 %$44.34 $(2.49)1,880.7%

Westin Boston Seaport District 793 $153.88$- 100.0 %36.4%- %36.4 %$55.94 $- 100.0 %

Westin Fort Lauderdale Beach Resort 433 $253.42$141.48 79.1 %67.0%18.4%48.6 %$169.80$26.04 552.1 %

Westin San Diego Downtown 436 $141.23$169.28 (16.6)%57.1%27.9%29.2 %$80.58 $47.18 70.8 %

Westin Washington D.C. City Center 410 $127.66$147.51 (13.5)%24.4%1.8 %22.6 %$31.21 $2.62 1,091.2%

Worthington Renaissance Fort Worth Hotel 504 $159.15$146.86 8.4 %55.8%11.3%44.5 %$88.74 $16.64 433.3 %

Total Open for Entire Period - 26 Hotels 7,207 $228.20$175.73 29.9 %54.0%11.4%42.6 %$123.30$19.98 517.1 %



Total Closed for All or Part of Period - 4 2,396 $161.17$431.14 (62.6)%20.5%- %20.5 %$33.08 $- 100.0 %Hotels



Resorts - 12 Hotels 2,215 $351.68$223.80 57.1 %64.9%13.2%51.7 %$228.36$29.57 672.3 %



Comparable Total ^(1) 8,878 $221.79$175.76 26.2 %48.5%9.2 %39.3 %$107.56$16.22 563.1 %

^(1) Excludes the two hotels sold in 2021: Frenchman's Reef and The LexingtonHotel.

Operating Statistics - Second Quarter

ADR Occupancy RevPAR Number of Rooms 2Q 2021 2Q 2019 B/(W) 2Q 2Q B/(W) 2Q 2021 2Q 2019 B/(W) 2019 2021 2019 2019 2019





Atlanta Marriott Alpharetta 318 $102.97$160.44(35.8)%49.4%74.8%(25.4)%$50.82 $119.97(57.6)%

Barbary Beach House Key West 186 $416.33$244.4970.3 %96.1%86.4%9.7 %$400.05$211.2689.4 %

Bethesda Marriott Suites 272 $106.48$188.39(43.5)%32.0%83.3%(51.3)%$34.07 $156.97(78.3)%

Cavallo Point, The Lodge at the Golden Gate 142 $591.42$467.4326.5 %45.4%64.0%(18.6)%$268.80$299.11(10.1)%

Courtyard Denver Downtown 177 $130.97$207.53(36.9)%65.5%83.8%(18.3)%$85.82 $173.87(50.6)%

Courtyard New York Manhattan/Midtown East 321 $159.76$274.26(41.7)%81.7%97.3%(15.6)%$130.51$266.76(51.1)%

Havana Cabana Key West 106 $300.11$202.8647.9 %97.0%90.4%6.6 %$291.21$183.3058.9 %

Hilton Boston Downtown/Faneuil Hall 403 $161.64$375.21(56.9)%54.5%90.5%(36.0)%$88.05 $339.67(74.1)%

Hilton Burlington Lake Champlain 258 $190.76$191.05(0.2) %61.7%84.0%(22.3)%$117.78$160.56(26.6)%

Hotel Emblem San Francisco 96 $145.08$227.87(36.3)%37.8%87.1%(49.3)%$54.77 $198.47(72.4)%

Hotel Palomar Phoenix 242 $158.11$174.16(9.2) %60.6%86.5%(25.9)%$95.78 $150.69(36.4)%

JW Marriott Denver Cherry Creek 199 $248.86$265.01(6.1) %68.4%79.2%(10.8)%$170.32$209.77(18.8)%

Kimpton Shorebreak Resort 157 $302.65$258.7417.0 %74.4%78.9%(4.5) %$225.22$204.0710.4 %

L'Auberge de Sedona 88 $997.93$669.1849.1 %89.0%83.8%5.2 %$888.40$560.6358.5 %

Orchards Inn Sedona 70 $334.13$267.9124.7 %81.4%85.0%(3.6) %$271.81$227.7019.4 %

Renaissance Charleston Historic District Hotel167 $328.57$301.898.8 %90.5%90.3%0.2 %$297.43$272.579.1 %

Salt Lake City Marriott Downtown at City Creek510 $131.56$167.09(21.3)%42.8%72.8%(30.0)%$56.29 $121.65(53.7)%

The Gwen Hotel 311 $232.02$285.70(18.8)%50.9%87.9%(37.0)%$118.16$251.18(53.0)%

The Landing Lake Tahoe Resort & Spa 82 $437.62$270.6261.7 %58.6%55.1%3.5 %$256.64$149.1572.1 %

The Lodge at Sonoma Resort 182 $314.26$327.39(4.0) %69.9%77.4%(7.5) %$219.71$253.52(13.3)%

Vail Marriott Mountain Resort 344 $237.42$174.0736.4 %18.7%44.3%(25.6)%$44.34 $77.08 (42.5)%

Westin Boston Seaport District 793 $153.88$278.41(44.7)%36.4%85.0%(48.6)%$55.94 $236.51(76.3)%

Westin Fort Lauderdale Beach Resort 433 $253.42$198.5327.6 %67.0%80.7%(13.7)%$169.80$160.285.9 %

Westin San Diego Downtown 436 $141.23$199.95(29.4)%57.1%82.5%(25.4)%$80.58 $164.92(51.1)%

Westin Washington D.C. City Center 410 $127.66$239.48(46.7)%24.4%92.4%(68.0)%$31.21 $221.35(85.9)%

Worthington Renaissance Fort Worth Hotel 504 $159.15$192.06(17.1)%55.8%77.5%(21.7)%$88.74 $148.88(40.4)%

Total Open for Entire Period - 26 Hotels 7,207 $228.20$245.63(7.1) %54.0%81.2%(27.2)%$123.30$199.35(38.1)%



Total Closed for All or Part of Period - 4 2,396 $161.17$262.83(38.7)%20.5%89.1%(68.6)%$33.08 $234.06(85.9)%Hotels



Resorts - 12 Hotels 2,215 $351.68$264.8932.8 %64.9%75.0%(10.1)%$228.36$198.6015.0 %



Comparable Total ^(1) 8,878 $221.79$248.50(10.7)%48.5%82.3%(33.8)%$107.56$204.41(47.4)%

^(1) Excludes the two hotels sold in 2021: Frenchman's Reef and The LexingtonHotel.

Operating Statistics - Year to Date

ADR Occupancy RevPAR Number of Rooms YTD 2021 YTD 2020 B/(W) YTD YTD B/(W) YTD 2021 YTD 2020 B/(W) 2020 2021 2020 2020 2020





Atlanta Marriott Alpharetta 318 $100.26$167.54(40.2)%36.2%29.1%7.1 %$36.30 $48.74 (25.5)%

Barbary Beach House Key West 186 $384.54$315.3521.9 %89.7%46.6%43.1 %$345.05$146.87134.9 %

Bethesda Marriott Suites 272 $106.15$168.34(36.9)%25.3%25.9%(0.6) %$26.82 $43.57 (38.4)%

Cavallo Point, The Lodge at the Golden Gate 142 $578.35$445.4929.8 %32.5%23.5%9.0 %$187.76$104.5679.6 %

Courtyard Denver Downtown 177 $118.06$163.06(27.6)%50.7%26.0%24.7 %$59.86 $42.40 41.2 %

Courtyard New York Manhattan/Midtown East 321 $144.74$154.60(6.4) %74.4%76.2%(1.8) %$107.65$117.86(8.7) %

Havana Cabana Key West 106 $281.56$271.003.9 %93.9%48.7%45.2 %$264.50$131.99100.4 %

Hilton Boston Downtown/Faneuil Hall 403 $146.29$191.87(23.8)%37.9%32.8%5.1 %$55.51 $62.99 (11.9)%

Hilton Burlington Lake Champlain 258 $164.69$133.8123.1 %47.3%19.7%27.6 %$77.93 $26.38 195.4 %

Hotel Emblem San Francisco 96 $140.33$255.03(45.0)%26.5%33.9%(7.4) %$37.24 $86.46 (56.9)%

Hotel Palomar Phoenix 242 $153.56$225.78(32.0)%55.2%37.4%17.8 %$84.76 $84.49 0.3 %

JW Marriott Denver Cherry Creek 199 $231.47$228.561.3 %54.0%31.6%22.4 %$124.97$72.19 73.1 %

Kimpton Shorebreak Resort 157 $276.07$211.5930.5 %59.0%55.2%3.8 %$162.80$116.7339.5 %

L'Auberge de Sedona 88 $864.93$568.5352.1 %84.9%50.3%34.6 %$734.44$286.00156.8 %

Orchards Inn Sedona 70 $299.29$209.2243.1 %71.8%37.2%34.6 %$215.03$77.91 176.0 %

Renaissance Charleston Historic District Hotel167 $285.01$225.0426.6 %73.8%40.3%33.5 %$210.26$90.78 131.6 %

Salt Lake City Marriott Downtown at City Creek510 $121.90$167.49(27.2)%36.7%28.0%8.7 %$44.71 $46.81 (4.5) %

The Gwen Hotel 311 $219.19$193.4213.3 %37.3%31.8%5.5 %$81.70 $61.51 32.8 %

The Landing Lake Tahoe Resort & Spa 82 $392.31$299.2031.1 %54.1%33.1%21.0 %$212.25$99.16 114.0 %

The Lodge at Sonoma Resort 182 $286.64$233.3922.8 %48.9%23.0%25.9 %$140.21$53.58 161.7 %

Vail Marriott Mountain Resort 344 $345.38$444.29(22.3)%46.0%33.0%13.0 %$158.90$146.468.5 %

Westin Boston Seaport District 793 $143.95$196.96(26.9)%25.7%29.9%(4.2) %$37.03 $58.95 (37.2)%

Westin Fort Lauderdale Beach Resort 433 $254.22$251.181.2 %61.5%49.5%12.0 %$156.34$124.3025.8 %

Westin San Diego Downtown 436 $141.30$182.76(22.7)%39.6%47.3%(7.7) %$55.96 $86.53 (35.3)%

Westin Washington D.C. City Center 410 $133.76$191.70(30.2)%16.7%31.0%(14.3)%$22.27 $59.48 (62.6)%

Worthington Renaissance Fort Worth Hotel 504 $150.46$187.14(19.6)%45.4%34.4%11.0 %$68.26 $64.47 5.9 %

Total Open for Entire Period - 26 Hotels 7,207 $223.73$220.891.3 %45.0%36.1%8.9 %$100.62$79.72 26.2 %



Total Closed for All or Part of Period - 4 2,396 $161.09$172.92(6.8) %9.5 %29.4%(19.9)%$15.26 $50.87 (70.0)%Hotels



Resorts - 12 Hotels 2,215 $333.41$295.4312.9 %60.2%38.1%22.1 %$200.66$112.4778.4 %



Comparable Total^ (1) 8,878 $219.95$213.393.1 %38.9%34.1%4.8 %$85.46 $72.72 17.5 %

^(1) Excludes the two hotels sold in 2021: Frenchman's Reef and The LexingtonHotel.

Operating Statistics - Year to Date

ADR Occupancy RevPAR Number of Rooms YTD 2021 YTD 2019 B/(W) YTD YTD B/(W) YTD 2021 YTD 2019 B/(W) 2019 2021 2019 2019 2019





Atlanta Marriott Alpharetta 318 $100.26$168.59(40.5)%36.2%72.6%(36.4)%$36.30 $122.44(70.4)%

Barbary Beach House Key West 186 $384.54$278.4838.1 %89.7%90.2%(0.5) %$345.05$251.2237.3 %

Bethesda Marriott Suites 272 $106.15$181.32(41.5)%25.3%74.4%(49.1)%$26.82 $134.84(80.1)%

Cavallo Point, The Lodge at the Golden Gate 142 $578.35$452.7527.7 %32.5%63.7%(31.2)%$187.76$288.31(34.9)%

Courtyard Denver Downtown 177 $118.06$191.01(38.2)%50.7%78.6%(27.9)%$59.86 $150.07(60.1)%

Courtyard New York Manhattan/Midtown East 321 $144.74$233.54(38.0)%74.4%94.7%(20.3)%$107.65$221.06(51.3)%

Havana Cabana Key West 106 $281.56$229.1022.9 %93.9%92.5%1.4 %$264.50$211.9624.8 %

Hilton Boston Downtown/Faneuil Hall 403 $146.29$290.58(49.7)%37.9%87.0%(49.1)%$55.51 $252.94(78.1)%

Hilton Burlington Lake Champlain 258 $164.69$163.670.6 %47.3%77.4%(30.1)%$77.93 $126.66(38.5)%

Hotel Emblem San Francisco 96 $140.33$235.46(40.4)%26.5%72.4%(45.9)%$37.24 $170.45(78.2)%

Hotel Palomar Phoenix 242 $153.56$203.74(24.6)%55.2%87.4%(32.2)%$84.76 $178.02(52.4)%

JW Marriott Denver Cherry Creek 199 $231.47$256.26(9.7) %54.0%63.1%(9.1) %$124.97$161.57(22.7)%

Kimpton Shorebreak Resort 157 $276.07$248.0911.3 %59.0%77.1%(18.1)%$162.80$191.22(14.9)%

L'Auberge de Sedona 88 $864.93$623.6738.7 %84.9%82.1%2.8 %$734.44$512.0443.4 %

Orchards Inn Sedona 70 $299.29$262.0414.2 %71.8%79.5%(7.7) %$215.03$208.253.3 %

Renaissance Charleston Historic District Hotel167 $285.01$270.695.3 %73.8%87.1%(13.3)%$210.26$235.71(10.8)%

Salt Lake City Marriott Downtown at City Creek510 $121.90$170.00(28.3)%36.7%66.0%(29.3)%$44.71 $112.24(60.2)%

The Gwen Hotel 311 $219.19$242.95(9.8) %37.3%79.2%(41.9)%$81.70 $192.44(57.5)%

The Landing Lake Tahoe Resort & Spa 82 $392.31$273.1443.6 %54.1%54.1%- %$212.25$147.6943.7 %

The Lodge at Sonoma Resort 182 $286.64$286.180.2 %48.9%69.5%(20.6)%$140.21$198.88(29.5)%

Vail Marriott Mountain Resort 344 $345.38$346.67(0.4) %46.0%63.2%(17.2)%$158.90$219.14(27.5)%

Westin Boston Seaport District 793 $143.95$245.47(41.4)%25.7%75.3%(49.6)%$37.03 $184.74(80.0)%

Westin Fort Lauderdale Beach Resort 433 $254.22$228.5811.2 %61.5%88.1%(26.6)%$156.34$201.29(22.3)%

Westin San Diego Downtown 436 $141.30$195.09(27.6)%39.6%80.0%(40.4)%$55.96 $156.11(64.2)%

Westin Washington D.C. City Center 410 $133.76$222.10(39.8)%16.7%85.0%(68.3)%$22.27 $188.80(88.2)%

Worthington Renaissance Fort Worth Hotel 504 $150.46$190.08(20.8)%45.4%78.5%(33.1)%$68.26 $149.15(54.2)%

Total Open for Entire Period - 26 Hotels 7,207 $223.73$237.00(5.6) %45.0%78.1%(33.1)%$100.62$185.05(45.6)%



Total Closed for All or Part of Period - 4 2,396 $161.09$226.95(29.0)%9.5 %78.5%(69.0)%$15.26 $178.05(91.4)%Hotels



Resorts - 12 Hotels 2,215 $333.41$280.6818.8 %60.2%77.7%(17.5)%$200.66$218.04(8.0) %



Comparable Total^ (1) 8,878 $219.95$234.54(6.2) %38.9%77.5%(38.6)%$85.46 $181.66(53.0)%

^(1) Excludes the two hotels sold in 2021: Frenchman's Reef and The LexingtonHotel.

Hotel Adjusted EBITDA Reconciliation

Second Quarter 2021

Plus: Plus: Plus: Equals:

Days of Total Net Income Interest AdjustmentsHotel OperationRevenues / (Loss) DepreciationExpense ^ (1) Adjusted EBITDA

Atlanta Marriott Alpharetta 91 $1,769 $(82) $347 $- $ - $265

Barbary Beach House Key West 91 $8,552 $4,412 $721 $- $ - $5,133

Bethesda Marriott Suites 91 $1,012 $(2,439) $515 $- $ 1,494 $(430)

Cavallo Point, The Lodge at the Golden Gate 91 $7,346 $919 $1,838 $- $ 94 $2,851

Chicago Marriott Downtown Magnificent Mile 77 $5,110 $(4,466) $4,072 $6 $ (397) $(785)

Courtyard Denver Downtown 91 $1,595 $199 $376 $- $ - $575

Courtyard New York Manhattan/Fifth Avenue 30 $781 $(1,554) $329 $- $ 253 $(972)

Courtyard New York Manhattan/Midtown East 91 $3,863 $(1,645) $476 $929 $ - $(240)

Frenchman's Reef & Morning Star Marriott Beach- $- $- $- $- $ - $- Resort

Havana Cabana Key West 91 $3,834 $1,682 $275 $- $ - $1,957

Hilton Boston Downtown/Faneuil Hall 91 $3,816 $(796) $1,047 $- $ - $251

Hilton Burlington Lake Champlain 91 $2,988 $398 $599 $- $ - $997

Hilton Garden Inn New York/Times Square 59 $1,634 $(1,785) $840 $- $ - $(945) Central

Hotel Emblem San Francisco 91 $564 $(583) $308 $- $ - $(275)

Hotel Palomar Phoenix 91 $3,533 $4 $675 $- $ 281 $960

JW Marriott Denver Cherry Creek 91 $5,003 $(66) $779 $661 $ 5 $1,379

Kimpton Shorebreak Resort 91 $4,659 $1,417 $415 $- $ - $1,832

L'Auberge de Sedona 91 $10,122 $4,265 $369 $- $ - $4,634

Orchards Inn Sedona 91 $2,779 $1,126 $82 $- $ 42 $1,250

Renaissance Charleston Historic District Hotel91 $5,516 $1,967 $464 $- $ - $2,431

Salt Lake City Marriott Downtown at City Creek91 $3,445 $(159) $516 $518 $ 11 $886

The Gwen Hotel 91 $5,104 $(371) $1,093 $- $ - $722

The Landing Lake Tahoe Resort & Spa 91 $2,918 $919 $418 $- $ - $1,337

The Lexington Hotel - $18 $(1,278) $- $7 $ 8 $(1,263)

The Lodge at Sonoma Resort 91 $5,513 $487 $463 $266 $ - $1,216

Vail Marriott Mountain Resort 91 $1,936 $(1,619) $1,053 $- $ - $(566)

Westin Boston Seaport District 91 $6,269 $(5,224) $2,532 $2,083 $ (122) $(731)

Westin Fort Lauderdale Beach Resort 91 $13,862 $3,333 $1,091 $- $ - $4,424

Westin San Diego Downtown 91 $3,945 $(675) $821 $602 $ - $748

Westin Washington D.C. City Center 91 $1,250 $(2,491) $1,062 $616 $ - $(813)

Worthington Renaissance Fort Worth Hotel 91 $6,055 $(963) $1,116 $749 $ 2 $904

Total $124,791$(5,068) $24,692 $6,437 $ 1,671 $27,775

Less: Sold Hotels ^(2) $(18) $1,278 $- $(7) $ (8) $1,263

Comparable Total $124,773$(3,790) $24,692 $6,430 $ 1,663 $29,038

^ Includes non-cash expenses incurred by the hotels due to the straight(1) lining of the rent from ground lease obligations and the non-cash amortization favorable and unfavorable contract liabilities.

^ Amounts represent the operating results of Frenchman's Reef and The(2) Lexington Hotel.

Hotel Adjusted EBITDA Reconciliation

Second Quarter 2020

Plus: Plus: Plus: Equals:

Days of Total Net Income / DepreciationInterest AdjustmentsHotel Adjusted Operation Revenues (Loss) Expense ^ (1) EBITDA

Atlanta Marriott Alpharetta 91 $ 279 $ (969) $360 $- $- $ (609)

Barbary Beach House Key West 30 $ 523 $ (1,416) $680 $- $- $ (736)

Bethesda Marriott Suites 91 $ 243 $ (2,958) $677 $- $1,506 $ (775)

Cavallo Point, The Lodge at the Golden Gate 7 $ 141 $ (2,940) $1,837 $- $94 $ (1,009)

Chicago Marriott Downtown Magnificent Mile 9 $ 242 $ (9,622) $4,179 $55 $(397) $ (5,785)

Courtyard Denver Downtown 30 $ 196 $ (713) $376 $- $- $ (337)

Courtyard New York Manhattan/Fifth Avenue - $ 46 $ (2,036) $329 $- $253 $ (1,454)

Courtyard New York Manhattan/Midtown East 91 $ 3,138 $ (1,175) $569 $972 $- $ 366

Frenchman's Reef & Morning Star Marriott Beach- $ - $ 6 $- $- $- $ 6 Resort

Havana Cabana Key West 30 $ 447 $ (586) $272 $- $- $ (314)

Hilton Boston Downtown/Faneuil Hall - $ 254 $ (2,339) $1,220 $- $- $ (1,119)

Hilton Burlington Lake Champlain - $ - $ (1,162) $500 $- $- $ (662)

Hilton Garden Inn New York/Times Square - $ 41 $ (2,312) $843 $- $- $ (1,469) Central

Hotel Emblem San Francisco 5 $ 7 $ (797) $289 $- $- $ (508)

Hotel Palomar Phoenix 10 $ 427 $ (1,622) $672 $39 $286 $ (625)

JW Marriott Denver Cherry Creek 30 $ 256 $ (2,252) $535 $675 $6 $ (1,036)

Kimpton Shorebreak Resort 91 $ 1,824 $ (137) $408 $- $- $ 271

L'Auberge de Sedona 91 $ 2,544 $ 92 $622 $- $- $ 714

Orchards Inn Sedona 47 $ 357 $ (181) $80 $- $42 $ (59)

Renaissance Charleston Historic District Hotel53 $ 798 $ (452) $419 $- $(32) $ (65)

Salt Lake City Marriott Downtown at City Creek91 $ 903 $ (1,690) $552 $582 $- $ (556)

The Gwen Hotel 21 $ 318 $ (2,411) $1,110 $- $- $ (1,301)

The Landing Lake Tahoe Resort & Spa 26 $ 733 $ (413) $425 $- $- $ 12

The Lexington Hotel - $ 56 $ (6,664) $3,043 $7 $8 $ (3,606)

The Lodge at Sonoma Resort - $ 50 $ (1,636) $444 $273 $- $ (919)

Vail Marriott Mountain Resort 19 $ 81 $ (2,829) $1,121 $- $- $ (1,708)

Westin Boston Seaport District - $ 543 $ (7,553) $2,559 $2,128 $(60) $ (2,926)

Westin Fort Lauderdale Beach Resort 91 $ 2,286 $ (2,321) $1,093 $- $- $ (1,228)

Westin San Diego Downtown 91 $ 2,484 $ (1,551) $1,124 $618 $- $ 191

Westin Washington D.C. City Center 91 $ 174 $ (3,456) $1,324 $640 $- $ (1,492)

Worthington Renaissance Fort Worth Hotel 91 $ 988 $ (3,507) $1,121 $765 $2 $ (1,619)

Total $ 20,379$ (67,602) $28,783 $6,754 $1,708 $ (30,357)

Less: Sold Hotels ^(2) $ (56) $ 6,658 $(3,043) $(7) $(8) $ 3,600

Comparable Total $ 20,323$ (60,944) $25,740 $6,747 $1,700 $ (26,757)

^ Includes non-cash expenses incurred by the hotels due to the straight(1) lining of the rent from ground lease obligations and the non-cash amortization favorable and unfavorable contract liabilities.

^ Amounts represent the operating results of Frenchman's Reef and The(2) Lexington Hotel.

Hotel Adjusted EBITDA Reconciliation

Second Quarter 2019

Plus: Plus: Plus: Equals:

Days of Total Net Income Interest Adjustments^Hotel OperationRevenues / (Loss) DepreciationExpense (1) Adjusted EBITDA

Atlanta Marriott Alpharetta 91 $4,862 $1,188 $459 $- $ - $1,647

Barbary Beach House Key West 91 $4,446 $1,217 $344 $- $ - $1,561

Bethesda Marriott Suites 91 $5,234 $18 $474 $- $ 1,517 $2,009

Cavallo Point, The Lodge at the Golden Gate 91 $10,721 $1,268 $1,789 $- $ 110 $3,167

Chicago Marriott Downtown Magnificent Mile 91 $34,590 $9,306 $4,166 $47 $ (397) $13,122

Courtyard Denver Downtown 91 $3,291 $1,466 $287 $- $ - $1,753

Courtyard New York Manhattan/Fifth Avenue 91 $4,341 $283 $440 $- $ 253 $976

Courtyard New York Manhattan/Midtown East 91 $8,048 $981 $688 $964 $ - $2,633

Frenchman's Reef & Morning Star Marriott Beach- $- $(2) $- $- $ - $(2) Resort

Havana Cabana Key West 91 $2,438 $746 $235 $- $ - $981

Hilton Boston Downtown/Faneuil Hall 91 $13,161 $4,939 $1,233 $- $ - $6,172

Hilton Burlington Lake Champlain 91 $4,993 $1,422 $515 $- $ - $1,937

Hilton Garden Inn New York/Times Square 91 $7,090 $1,457 $826 $- $ - $2,283 Central

Hotel Emblem San Francisco 91 $1,995 $180 $297 $- $ - $477

Hotel Palomar Phoenix 91 $6,070 $668 $663 $38 $ 295 $1,664

JW Marriott Denver Cherry Creek 91 $5,797 $265 $688 $687 $ 6 $1,646

Kimpton Shorebreak Resort 91 $4,483 $1,192 $349 $- $ 40 $1,581

L'Auberge de Sedona 91 $7,668 $2,101 $508 $- $ - $2,609

Orchards Inn Sedona 91 $2,414 $622 $237 $- $ 42 $901

Renaissance Charleston Historic District Hotel91 $4,685 $1,906 $418 $- $ (32) $2,292

Salt Lake City Marriott Downtown at City Creek91 $7,863 $1,695 $574 $606 $ - $2,875

The Gwen Hotel 91 $9,881 $2,332 $1,149 $- $ - $3,481

The Landing Lake Tahoe Resort & Spa 91 $1,804 $(332) $385 $- $ - $53

The Lexington Hotel 91 $18,275 $1,324 $3,557 $8 $ 8 $4,897

The Lodge at Sonoma Resort 91 $6,946 $1,501 $529 $280 $ - $2,310

Vail Marriott Mountain Resort 91 $4,485 $(1,622) $1,035 $- $ - $(587)

Westin Boston Seaport District 91 $29,239 $5,918 $2,436 $2,169 $ (60) $10,463

Westin Fort Lauderdale Beach Resort 91 $12,614 $2,220 $1,633 $- $ - $3,853

Westin San Diego Downtown 91 $9,033 $1,629 $1,136 $634 $ - $3,399

Westin Washington D.C. City Center 91 $10,316 $2,030 $1,317 $662 $ - $4,009

Worthington Renaissance Fort Worth Hotel 91 $11,135 $2,548 $968 $780 $ 2 $4,298

Total $257,918 $50,466 $29,335 $6,875 $ 1,784 $88,351

Less: Sold Hotels ^(2) $(18,275)$(1,322) $(3,557) $(8) $ (8) $(4,895)

Comparable Total $239,643 $49,144 $25,778 $6,867 $ 1,776 $83,456

^ Includes non-cash expenses incurred by the hotels due to the straight(1) lining of the rent from ground lease obligations and the non-cash amortization favorable and unfavorable contract liabilities.

^ Amounts represent the operating results of Frenchman's Reef and The(2) Lexington Hotel.

Hotel Adjusted EBITDA Reconciliation

Year to Date 2021

Plus: Plus: Plus: Equals:

Days of Total Net Income / Interest AdjustmentsHotel OperationRevenues (Loss) DepreciationExpense ^ (1) Adjusted EBITDA

Atlanta Marriott Alpharetta 181 $2,532 $(734) $695 $- $- $(39)

Barbary Beach House Key West 181 $14,587 $6,945 $1,432 $- $- $8,377

Bethesda Marriott Suites 181 $1,566 $(5,094) $1,038 $- $2,996 $(1,060)

Cavallo Point, The Lodge at the Golden Gate 181 $10,224 $(812) $3,675 $- $187 $3,050

Chicago Marriott Downtown Magnificent Mile 79 $5,224 $(11,802) $8,177 $48 $(795) $(4,372)

Courtyard Denver Downtown 181 $2,286 $(263) $759 $- $- $496

Courtyard New York Manhattan/Fifth Avenue 30 $833 $(3,211) $658 $- $507 $(2,046)

Courtyard New York Manhattan/Midtown East 181 $6,328 $(4,288) $961 $1,853 $- $(1,474)

Frenchman's Reef & Morning Star Marriott Beach- $- $- $- $- $- $- Resort

Havana Cabana Key West 181 $6,952 $2,860 $541 $- $- $3,401

Hilton Boston Downtown/Faneuil Hall 181 $4,651 $(3,615) $2,142 $- $- $(1,473)

Hilton Burlington Lake Champlain 181 $3,956 $(497) $1,248 $- $- $751

Hilton Garden Inn New York/Times Square 59 $1,633 $(4,037) $1,679 $- $- $(2,358) Central

Hotel Emblem San Francisco 181 $772 $(1,355) $615 $- $- $(740)

Hotel Palomar Phoenix 181 $6,075 $(509) $1,354 $- $568 $1,413

JW Marriott Denver Cherry Creek 181 $7,423 $(1,576) $1,573 $1,318 $10 $1,325

Kimpton Shorebreak Resort 181 $6,756 $1,298 $825 $- $- $2,123

L'Auberge de Sedona 181 $16,600 $6,020 $912 $- $- $6,932

Orchards Inn Sedona 181 $4,561 $1,604 $164 $- $84 $1,852

Renaissance Charleston Historic District Hotel181 $7,762 $2,086 $917 $- $- $3,003

Salt Lake City Marriott Downtown at City Creek181 $5,563 $(1,223) $1,044 $1,035 $11 $867

The Gwen Hotel 181 $7,041 $(2,516) $2,188 $- $- $(328)

The Landing Lake Tahoe Resort & Spa 181 $4,527 $1,113 $834 $- $- $1,947

The Lexington Hotel - $60 $(6,440) $1,925 $13 $16 $(4,486)

The Lodge at Sonoma Resort 181 $6,947 $(732) $1,008 $531 $- $807

Vail Marriott Mountain Resort 181 $13,211 $3,435 $1,954 $- $- $5,389

Westin Boston Seaport District 181 $7,632 $(13,221) $5,077 $4,155 $(245) $(4,234)

Westin Fort Lauderdale Beach Resort 181 $24,935 $5,781 $2,154 $- $- $7,935

Westin San Diego Downtown 181 $5,437 $(2,893) $1,666 $1,202 $- $(25)

Westin Washington D.C. City Center 181 $1,807 $(5,614) $2,210 $1,232 $- $(2,172)

Worthington Renaissance Fort Worth Hotel 181 $9,847 $(3,425) $2,229 $1,494 $4 $302

Total $197,728$(42,715) $51,654 $12,881 $3,343 $25,207

Less: Sold Hotels^ (2) $(60) $6,440 $(1,925) $(13) $(16) $4,486

Comparable Total $197,668$(36,275) $49,729 $12,868 $3,327 $29,693

^ Includes non-cash expenses incurred by the hotels due to the straight(1) lining of the rent from ground lease obligations and the non-cash amortization favorable and unfavorable contract liabilities.

^ Amounts represent the operating results of Frenchman's Reef and The(2) Lexington Hotel.

Hotel Adjusted EBITDA Reconciliation

Year to Date 2020

Plus: Plus: Plus: Equals:

Days of Total Net Income / Interest AdjustmentsHotel OperationRevenues (Loss) DepreciationExpense ^ (1) Adjusted EBITDA

Atlanta Marriott Alpharetta 182 $4,258 $(225) $734 $- $- $509

Barbary Beach House Key West 112 $5,923 $(84) $1,357 $- $- $1,273

Bethesda Marriott Suites 182 $2,979 $(5,055) $1,206 $- $3,020 $(829)

Cavallo Point, The Lodge at the Golden Gate 83 $7,857 $(4,007) $3,706 $- $187 $(114)

Chicago Marriott Downtown Magnificent Mile 100 $13,844 $(17,186) $8,404 $108 $(795) $(9,469)

Courtyard Denver Downtown 109 $1,665 $(715) $719 $- $- $4

Courtyard New York Manhattan/Fifth Avenue 86 $2,324 $(3,530) $780 $- $507 $(2,243)

Courtyard New York Manhattan/Midtown East 182 $7,118 $(3,930) $1,291 $1,923 $- $(716)

Frenchman's Reef & Morning Star Marriott Beach- $- $- $- $- $- $- Resort

Havana Cabana Key West 112 $3,164 $291 $525 $- $- $816

Hilton Boston Downtown/Faneuil Hall 82 $5,519 $(3,383) $2,447 $- $- $(936)

Hilton Burlington Lake Champlain 90 $1,697 $(1,986) $1,005 $- $- $(981)

Hilton Garden Inn New York/Times Square 88 $3,221 $(4,239) $1,690 $- $- $(2,549) Central

Hotel Emblem San Francisco 87 $1,842 $(792) $576 $- $- $(216)

Hotel Palomar Phoenix 100 $6,844 $(221) $1,345 $77 $579 $1,780

JW Marriott Denver Cherry Creek 111 $3,661 $(3,545) $1,342 $1,353 $12 $(838)

Kimpton Shorebreak Resort 182 $5,035 $(44) $819 $- $27 $802

L'Auberge de Sedona 182 $7,182 $(513) $1,360 $- $- $847

Orchards Inn Sedona 137 $1,609 $(371) $297 $- $84 $10

Renaissance Charleston Historic District Hotel144 $3,692 $(237) $846 $- $(63) $546

Salt Lake City Marriott Downtown at City Creek182 $7,628 $(698) $1,111 $1,174 $- $1,587

The Gwen Hotel 111 $5,005 $(3,960) $2,223 $- $- $(1,737)

The Landing Lake Tahoe Resort & Spa 108 $2,447 $(828) $835 $- $- $7

The Lexington Hotel 88 $8,703 $(13,995) $6,664 $12 $16 $(7,303)

The Lodge at Sonoma Resort 80 $3,604 $(2,738) $897 $548 $- $(1,293)

Vail Marriott Mountain Resort 98 $12,561 $1,073 $2,231 $- $- $3,304

Westin Boston Seaport District 84 $16,674 $(11,334) $5,168 $4,266 $(120) $(2,020)

Westin Fort Lauderdale Beach Resort 182 $19,073 $3,625 $2,145 $- $- $5,770

Westin San Diego Downtown 182 $10,084 $(940) $2,261 $1,240 $- $2,561

Westin Washington D.C. City Center 182 $5,536 $(5,029) $2,642 $1,285 $- $(1,102)

Worthington Renaissance Fort Worth Hotel 182 $9,625 $(3,804) $2,257 $1,533 $4 $(10)

Total $190,374$(88,400) $58,883 $13,519 $3,458 $(12,538)

Less: Sold Hotels^ (2) $(8,703)$13,995 $(6,664) $(12) $(16) $7,303

Comparable Total $181,671$(74,405) $52,219 $13,507 $3,442 $(5,235)

^ Includes non-cash expenses incurred by the hotels due to the straight(1) lining of the rent from ground lease obligations and the non-cash amortization favorable and unfavorable contract liabilities.

^ Amounts represent the operating results of Frenchman's Reef and The(2) Lexington Hotel.

Hotel Adjusted EBITDA Reconciliation

Year to Date 2019

Plus: Plus: Plus: Equals:

Days of Total Net Income / Interest AdjustmentsHotel OperationRevenues (Loss) DepreciationExpense ^ (1) Adjusted EBITDA

Atlanta Marriott Alpharetta 181 $10,172 $2,768 $934 $- $- $3,702

Barbary Beach House Key West 181 $10,240 $3,612 $682 $- $- $4,294

Bethesda Marriott Suites 181 $9,171 $(954) $951 $- $3,042 $3,039

Cavallo Point, The Lodge at the Golden Gate 181 $19,967 $1,047 $3,729 $- $142 $4,918

Chicago Marriott Downtown Magnificent Mile 181 $50,721 $5,239 $8,295 $118 $(795) $12,857

Courtyard Denver Downtown 181 $5,537 $2,014 $584 $- $- $2,598

Courtyard New York Manhattan/Fifth Avenue 181 $7,226 $(622) $881 $- $507 $766

Courtyard New York Manhattan/Midtown East 181 $13,303 $(640) $1,379 $1,922 $- $2,661

Frenchman's Reef & Morning Star Marriott Beach- $- $8,800 $- $- $- $8,800 Resort

Havana Cabana Key West 181 $5,354 $1,949 $480 $- $- $2,429

Hilton Boston Downtown/Faneuil Hall 181 $19,833 $4,853 $2,477 $- $- $7,330

Hilton Burlington Lake Champlain 181 $7,910 $1,466 $1,015 $- $- $2,481

Hilton Garden Inn New York/Times Square 181 $11,714 $787 $1,671 $- $- $2,458 Central

Hotel Emblem San Francisco 181 $3,344 $(77) $572 $- $- $495

Hotel Palomar Phoenix 181 $13,683 $2,743 $1,329 $76 $589 $4,737

JW Marriott Denver Cherry Creek 181 $8,474 $(1,213) $1,229 $1,370 $12 $1,398

Kimpton Shorebreak Resort 181 $8,424 $1,778 $698 $- $81 $2,557

L'Auberge de Sedona 181 $13,622 $2,960 $1,017 $- $- $3,977

Orchards Inn Sedona 181 $4,292 $896 $475 $- $84 $1,455

Renaissance Charleston Historic District Hotel181 $8,168 $2,796 $821 $- $(63) $3,554

Salt Lake City Marriott Downtown at City Creek181 $14,737 $2,752 $1,104 $1,210 $- $5,066

The Gwen Hotel 181 $14,937 $773 $2,208 $- $- $2,981

The Landing Lake Tahoe Resort & Spa 181 $3,558 $(792) $761 $- $- $(31)

The Lexington Hotel 181 $29,534 $(3,098) $7,085 $12 $16 $4,015

The Lodge at Sonoma Resort 181 $11,475 $1,165 $1,064 $558 $- $2,787

Vail Marriott Mountain Resort 181 $19,880 $4,923 $2,025 $- $- $6,948

Westin Boston Seaport District 181 $46,982 $3,873 $4,849 $4,324 $(120) $12,926

Westin Fort Lauderdale Beach Resort 181 $30,115 $8,172 $3,178 $- $- $11,350

Westin San Diego Downtown 181 $17,679 $3,330 $2,262 $1,264 $- $6,856

Westin Washington D.C. City Center 181 $17,410 $1,795 $2,639 $1,322 $- $5,756

Worthington Renaissance Fort Worth Hotel 181 $22,831 $5,729 $1,937 $1,555 $4 $9,225

Total $460,293 $68,824 $58,331 $13,731 $3,499 $144,280

Less: Sold Hotels ^(2) $(29,534)$(5,702) $(7,085) $(12) $(16) $(12,815)

Comparable Total $430,759 $63,122 $51,246 $13,719 $3,483 $131,465

^ Includes non-cash expenses incurred by the hotels due to the straight(1) lining of the rent from ground lease obligations and the non-cash amortization favorable and unfavorable contract liabilities.

^ Amounts represent the operating results of Frenchman's Reef and The(2) Lexington Hotel.

View original content: https://www.prnewswire.com/news-releases/diamondrock-hospitality-company-reports-second-quarter-results-301349830.html

SOURCE DiamondRock Hospitality Company