PR Newswire | Nov 4, 2021 04:07PM EDT

11/04 15:05 CDT

DiamondRock Hospitality Company Reports Third Quarter ResultsLargest Quarterly Hotel Profit Since Pandemic InceptionThird Quarter RevPAR Exceeded 80% of 2019 BETHESDA, Md., Nov. 4, 2021

BETHESDA, Md., Nov. 4, 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 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

2021 2020 2019 2020 2019

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

Comparable OperatingResults ^(1)

ADR $ 238.34 $ 209.07 $ 236.57 14.0 % 0.7 %

Occupancy 65.1 % 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 26.60 % (27.29) % 30.95 % 5,389 (435) bpsMargin bps

Available Rooms 840,236 839,960 839,960 276 276

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 $ (0.02) $ (0.40) $ 0.06 95.0 % (133.3) %diluted share

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 $ 0.10 $ (0.22) $ 0.27 145.5 % (63.0) %share

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(1) 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.

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

Nine Months Ended September 30, Change From

2021 2020 2019 2020 2019

($ 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) %

Occupancy 47.4 %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 $78.0 $(18.6) $206.6 519.4 %(62.2) %EBITDA

Hotel Adjusted 20.34 %(7.73) %30.75 %2,807 bps(1,041) EBITDA Margin bps

Available Rooms 2,493,100 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 $(0.94) $(0.93) $0.24 (1.1) %(491.7)%diluted share

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 $0.03 $(0.38) $0.80 107.9 %(96.3) %diluted share

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(1) 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.

^ Actual operating results include the operating results of hotels acquired(2) 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 February March April May June 2021 2021 2021 2021 2021 2021



Number of 31 31 31 31 31 31 Hotels

Number of 9,133 9,133 9,133 9,133 9,133 9,133 Rooms

Occupancy 21.2 %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 $61.46 $92.71 $116.48 $127.47 $152.57 $181.92 RevPAR

2021 vs 2019

Occupancy (4,280) (4,600) (4,380) (4,300) (3,360) change in bps bps bps bps bps (2,690) bpsbps

ADR Rate %(4.0) %(0.1) %(1.4) %(6.9) %(12.0) %(10.9) %change

RevPAR % (68.2) %(61.3) %(55.9) %(56.1) %(48.7) %(38.9) %change

Total RevPAR % (69.0) %(62.5) %(57.7) %(55.5) %(49.2) %(40.4) %change

July August September Preliminary 2021 2021 2021 October 2021



Number of Hotels 31 31 31 31

Number of Rooms 9,133 9,133 9,133 9,133

Occupancy 69.4 %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 % change 5.7 %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) %

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(1) 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.

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 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)



September December 31, 30, 2021 2020

ASSETS (unaudited)

Property and equipment, net $2,544,486$2,817,356

Right-of-use assets 100,499 96,673

Restricted cash 31,333 23,050

Due from hotel managers 109,500 69,495

Prepaid and other assets ^(1) 19,335 28,403

Cash and cash equivalents 66,499 111,796

Total assets $2,871,652$3,146,773

LIABILITIES AND EQUITY

Liabilities:

Mortgage and other debt, net of unamortized debt $584,365 $595,149 issuance costs

Unsecured term loans, net of unamortized debt 398,423 398,550 issuance costs

Senior unsecured credit facility - 55,000

Total debt 982,788 1,048,699



Lease liabilities 107,939 104,973

Deferred rent 58,770 56,344

Due to hotel managers 84,464 95,548

Unfavorable contract liabilities, net 63,340 64,796

Accounts payable and accrued expenses ^(2) 42,324 46,542

Deferred income related to key money, net 7,753 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 per48 48 share), 4,760,000 shares issued and outstanding at September 30, 2021 and December 31, 2020

Common stock, $0.01 par value; 400,000,000 shares authorized; 210,619,840 and 210,073,514 shares 2,106 2,101 issued and outstanding at September 30, 2021 and December 31, 2020, respectively

Additional paid-in capital 2,292,180 2,285,491

Accumulated deficit (775,537) (576,531)

Total stockholders' equity 1,518,797 1,711,109

Noncontrolling interests 5,477 7,816

Total equity 1,524,274 1,718,925

Total liabilities and equity $2,871,652$3,146,773

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(1) December 31, 2020, respectively, and $2.4 million of insurance receivables as of December 31, 2020.

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(2) 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.

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



Three Months Ended Nine Months Ended September 30, September 30,

2021 2020 2021 2020

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 25,555 28,514 77,209 87,397 amortization

Impairment losses - - 126,697 -

Corporate expenses 8,341 7,267 23,790 19,650

Total operating 168,809 111,870 539,438 390,285 expenses, net



Interest and other 11 (191) (460) 58 expense (income), net

Interest expense 10,052 10,818 29,246 43,665

Total other 10,063 10,627 28,786 43,723 expenses, net

Income (loss) before 600 (72,430) (191,024) (193,567) income taxes

Income tax (expense) (2,371) (7,205) (1,433) 5,853 benefit

Net loss (1,771) (79,635) (192,457) (187,714)

Less: Net loss attributable to 6 43 812 781 noncontrolling interests

Net loss attributable (1,765) (79,592) (191,645) (186,933) to the Company

Distributions to (2,454) (845) (7,362) (845) preferred stockholders

Net loss attributable $(4,219) $(80,437) $(199,007)$(187,778)to common stockholders

Loss per share:

Net loss per share available to common $(0.02) $(0.40) $(0.94) $(0.93) stockholders - basic

Net loss per share available to common $(0.02) $(0.40) $(0.94) $(0.93) stockholders - diluted



Weighted-average number of common shares outstanding:

Basic 212,256,590200,978,327211,966,969200,994,434

Diluted 212,256,590200,978,327211,966,969200,994,434

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 September 30,

2021 2020 2019

Net (loss) income $(1,771) $(79,635) $11,574

Interest expense 10,052 10,818 14,184

Income tax expense 2,371 7,205 1,217

Real estate related depreciation and 25,555 28,514 29,474 amortization

EBITDAre 36,207 (33,098) 56,449

Non-cash lease expense and other 1,664 1,715 1,750 amortization

Professional fees and pre-opening 335 593 6,378 costs related to Frenchman's Reef ^(1)

Hotel manager transition items 523 (1,021) 582

Uninsured costs related to natural 187 - - disasters ^(2)

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,

2021 2020 2019

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 77,209 87,397 87,805 amortization

EBITDA (84,569) (62,505) 177,636

Impairment losses 126,697 - -

EBITDAre 42,128 (62,505) 177,636

Non-cash lease expense and other 5,007 5,172 5,249 amortization

Professional fees and pre-opening 1,388 418 11,445 costs related to Frenchman's Reef ^(1)

Hotel manager transition items 651 (460) 1,050

Uninsured costs related to natural 187 - - disasters ^(2)

Loss on early extinguishment of debt - - 2,373

Severance costs ^(3) (216) 7,760 -

Adjusted EBITDA $49,145 $(49,615) $197,753

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.

^ Represents costs incurred at the Bourbon Orleans Hotel as a result of(2) Hurricane Ida, which are not covered by insurance.

^ Consists of severance costs incurred with the elimination of positions at(3) 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 September 30,

2021 2020 2019

Net (loss) income $(1,771) $(79,635) $11,574

Interest expense 10,052 10,818 14,184

Income tax expense 2,371 7,205 1,217

Real estate related depreciation and 25,555 28,514 29,474 amortization

EBITDA 36,207 (33,098) 56,449

Corporate expenses 8,341 7,267 6,318

Interest and other expense (income), 11 (191) (102) net

Uninsured costs related to natural 187 - - disasters ^(1)

Loss on early extinguishment of debt - - 2,373

Professional fees and pre-opening 335 593 6,378 costs related to Frenchman's Reef ^(2)

Hotel EBITDA 45,081 (25,429) 71,416

Non-cash lease expense and other 1,664 1,715 1,750 amortization

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,

2021 2020 2019

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 77,209 87,397 87,805 amortization

EBITDA (84,569) (62,505) 177,636

Corporate expenses 23,790 19,650 20,785

Interest and other (income) expense, (460) 58 (510) net

Uninsured costs related to natural 187 - - disasters ^(1)

Loss on early extinguishment of debt - - 2,373

Professional fees and pre-opening 1,388 418 11,445 costs related to Frenchman's Reef ^(2)

Impairment losses 126,697 - -

Hotel EBITDA 67,033 (42,379) 211,729

Non-cash lease expense and other 5,007 5,172 5,249 amortization

Hotel manager transition items 651 (460) 1,050

Severance costs ^(3) (216) 7,760 -

Hotel Adjusted EBITDA $72,475 $(29,907) $218,028

^ Represents costs incurred at the Bourbon Orleans Hotel as a result of(1) Hurricane Ida, which are not covered by insurance.

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(2) 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(3) 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 September 30,

2021 2020 2019

Net (loss) income $(1,771) $(79,635) $11,574

Real estate related depreciation and 25,555 28,514 29,474 amortization

Impairment losses, net of tax (2,215) - -

FFO 21,569 (51,121) 41,048

Distribution to preferred stockholders(2,454) (845) -

FFO available to common stock and unit19,115 (51,966) 41,048 holders

Non-cash lease expense and other 1,664 1,715 1,750 amortization

Uninsured costs related to natural 187 - - disasters ^(1)

Professional fees and pre-opening costs related to Frenchman's Reef ^ 335 593 6,378 (2)

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 (919) (983) 3,143 rate swaps

Adjusted FFO available to common stock$20,905 $(44,295) $55,274 and unit holders

Adjusted FFO available to common stock$0.10 $(0.22) $0.27 and unit holders, per diluted share





Nine Months Ended September 30,

2021 2020 2019

Net (loss) income $(192,457)$(187,714)$49,628

Real estate related depreciation and 77,209 87,397 87,805 amortization

Impairment losses, net of tax 127,282 - -

FFO 12,034 (100,317) 137,433

Distribution to preferred stockholders(7,362) (845) -

FFO available to common stock and unit4,672 (101,162) 137,433 holders

Non-cash lease expense and other 5,007 5,172 5,249 amortization

Uninsured costs related to natural 187 - - disasters ^(1)

Professional fees and pre-opening 1,388 418 11,445 costs related to Frenchman's Reef^ (2)

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 (4,488) 11,329 4,790 rate swaps

Adjusted FFO available to common stock$7,201 $(76,943) $162,340and unit holders

Adjusted FFO available to common stock$0.03 $(0.38) $0.80 and unit holders, per diluted share

^ Represents costs incurred at the Bourbon Orleans Hotel as a result of(1) Hurricane Ida, which are not covered by insurance.

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(2) 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(3) 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 September 30,

2021 2020 2019

Revenues $179,472 $50,067 $240,279

Hotel revenues from prior ownership ^ 2,044 2,317 6,045 (1)

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 833 339 1,756 ownership ^(1)

Hotel Adjusted EBITDA from sold hotels 178 2,776 (4,938) ^(2)

Comparable Hotel Adjusted EBITDA $48,279 $(14,253) $70,566



Hotel Adjusted EBITDA Margin 26.34 %(34.69) %30.69 %

Comparable Hotel Adjusted EBITDA Margin26.60 %(27.29) %30.95 %





Nine Months Ended September 30,

2021 2020 2019

Revenues $377,200 $240,441 $700,572

Hotel revenues from prior ownership ^ 6,406 8,435 19,194 (1)

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 888 1,273 6,307 ownership ^(1)

Hotel Adjusted EBITDA from sold hotels 4,664 10,081 (17,758) ^(2)

Comparable Hotel Adjusted EBITDA $78,027 $(18,553) $206,577



Hotel Adjusted EBITDA Margin 19.21 %(12.44) %31.12 %

Comparable Hotel Adjusted EBITDA Margin20.34 %(7.73) %30.75 %

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(1) 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.

^ Amounts represent the operating results of Frenchman's Reef and The(2) 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 $246,876 $227,986 $222,692 $894,586 thousands)

Hotel Adjusted EBITDA (in $49,794 $86,217 $70,566 $65,256 $271,833 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 $21,676 $52,231 $60,760 $300,779 thousands)

Hotel Adjusted EBITDA (in $22,901 $(27,201) $(14,253) $(4,727) $(23,280) thousands)

Hotel Adjusted13.79 %(125.49) %(27.29) %(7.78) %(7.74) %EBITDA Margin

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

Quarter 1, Quarter 2, Quarter 3, 2021 2021 2021

ADR $217.76 $223.74 $238.34

Occupancy 28.6 %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 $(105) $29,853 $48,279 thousands)

Hotel Adjusted EBITDA Margin (0.14) %23.33 %26.60 %

Available Rooms 821,790 831,074 840,236

Market Capitalization as of September 30, 2021

(in thousands)

Enterprise Value



Common equity capitalization (at September 30, 2021 closing $2,027,450price of $9.45/share)

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

Consolidated debt (face amount) 986,342

Cash and cash equivalents (66,499)

Total enterprise value $3,066,293

Share Reconciliation



Common shares outstanding 210,620

Operating partnership units 775

Unvested restricted stock held by management and employees 1,451

Share grants under deferred compensation plan 1,699

Combined shares and units 214,545

Debt Summary as of September 30, 2021

(dollars in thousands)

Interest Rate Outstanding Loan as of SeptemberTerm Principal Maturity 30, 2021

Salt Lake City Marriott LIBOR + 3.25 ^ January Downtown at City Creek (1) Variable45,900 2022 ^ (2)

Westin Washington D.C. City3.99% Fixed 56,516 January Center 2023

The Lodge at Sonoma Resort 3.96% Fixed 25,786 April 2023

Westin San Diego Downtown 3.94% Fixed 59,023 April 2023

Courtyard New York 4.40% Fixed 78,305 August Manhattan / Midtown East 2024

Worthington Renaissance 3.66% Fixed 77,901 May 2025Fort Worth Hotel

JW Marriott Denver Cherry 4.33% Fixed 59,112 July Creek 2025

Westin Boston Seaport 4.36% Fixed 183,799 NovemberDistrict 2025

Unamortized debt (1,977) issuance costs

Total mortgage and other debt, net of unamortized 584,365 debt issuance costs



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

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

Unamortized debt (1,577) issuance costs

Unsecured term loans, net of unamortized debt 398,423 issuance costs



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



Total debt, net of unamortized debt issuance $982,788 costs

Weighted-average interest 4.25 % rate of fixed rate debt

Total weighted-average 3.97 % interest rate



^ 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 July 2021July 2020B/(W) July 2021July 2020B/(W) July 2021July 2020B/(W) 2020 2020 2020



Total - 31 9,133$242.18$215.1612.6 %69.4% 16.8% 52.6 %$168.00$36.24 363.6 %Hotels



Resorts - 14 2,470$373.10$277.2534.6 %75.5% 33.6% 41.9 %$281.54$93.05 202.6 %Hotels





Number B/(W) B/(W) B/(W) of July 2021July 20192019 July 2021July 20192019 July 2021July 20192019 Rooms



Total - 31 9,133$242.18$229.065.7 %69.4% 82.3% (12.9)%$168.00$188.54(10.9)%Hotels



Resorts - 14 2,470$373.10$256.1545.7 %75.5% 81.0% (5.5) %$281.54$207.4935.7 %Hotels





NumberAugust August B/(W) August August B/(W) August August B/(W) of 2021 2020 2020 2021 2020 2020 2021 2020 2020 Rooms





Total - 31 9,133$227.45$204.8311.0 %63.3% 19.6% 43.7 %$143.88$40.09 258.9 %Hotels



Resorts - 14 2,470$345.37$264.5630.5 %63.2% 39.1% 24.1 %$218.33$103.35111.3 %Hotels





NumberAugust August B/(W) August August B/(W) August August B/(W) of 2021 2019 2019 2021 2019 2019 2021 2019 2019 Rooms





Total - 31 9,133$227.45$224.371.4 %63.3% 81.7% (18.4)%$143.88$183.41(21.6)%Hotels



Resorts - 14 2,470$345.37$253.8836.0 %63.2% 76.6% (13.4)%$218.33$194.3912.3 %Hotels





NumberSeptemberSeptemberB/(W) SeptemberSeptemberB/(W) SeptemberSeptemberB/(W) of 2021 2020 2020 2021 2020 2020 2021 2020 2020 Rooms





Total - 31 9,133$245.31$208.2117.8 %62.6% 23.3% 39.3 %$153.57$48.54 216.4 %Hotels



Resorts - 14 2,470$346.90$284.4522.0 %61.4% 40.0% 21.4 %$213.06$113.8487.2 %Hotels





NumberSeptemberSeptemberB/(W) SeptemberSeptemberB/(W) SeptemberSeptemberB/(W) of 2021 2019 2019 2021 2019 2019 2021 2019 2019 Rooms





Total - 31 9,133$245.31$257.27(4.6)%62.6% 80.7% (18.1)%$153.57$207.49(26.0)%Hotels



Resorts - 14 2,470$346.90$259.0333.9 %61.4% 69.6% (8.2) %$213.06$180.2618.2 %Hotels

^ All periods presented include the two hotels acquired in 2021: Bourbon(1) Orleans Hotel and Henderson Park Inn and exclude the two hotels sold in 2021: Frenchman's Reef and The Lexington Hotel.^

Operating Statistics - Third Quarter

NumberADR Occupancy RevPAR of Rooms 3Q 2021 3Q 2020 B/(W) 3Q 3Q B/(W) 3Q 2021 3Q 2020 B/(W) 2020 2021 2020 2020 2020





Atlanta Marriott 318 $119.77$96.94 23.6 %63.2%13.3%49.9 %$75.75 $12.89 487.7 %Alpharetta

Barbary Beach House186 $382.97$194.9096.5 %76.3%33.6%42.7 %$292.20$65.49 346.2 %Key West

Bethesda Marriott 272 $118.48$104.2713.6 %41.1%19.0%22.1 %$48.73 $19.85 145.5 %Suites

Bourbon Orleans 218 $189.19$- 100.0%55.9%- %55.9 %$105.73$- 100.0 %Hotel ^(1)

Cavallo Point, The Lodge at 142 $697.33$510.7936.5 %58.6%26.1%32.5 %$408.40$133.09206.9 %the Golden Gate

Chicago Marriott Downtown 1,200$204.01$159.3328.0 %54.4%1.8 %52.6 %$110.97$2.90 3,726.6%Magnificent Mile

Courtyard Denver 177 $198.04$105.5387.7 %77.0%29.1%47.9 %$152.42$30.71 396.3 %Downtown

Courtyard New York Manhattan/ 189 $188.42$- 100.0%94.3%- %94.3 %$177.64$- 100.0 %Fifth Avenue

Courtyard New York Manhattan/ 321 $221.26$133.0266.3 %77.5%38.8%38.7 %$171.52$51.60 232.4 %Midtown East

Havana Cabana Key 106 $289.47$152.9889.2 %85.6%69.0%16.6 %$247.92$105.59134.8 %West

Henderson Park Inn ^ 37 $630.12$560.1212.5 %91.9%88.7%3.2 %$579.30$496.8416.6 %(2)

Hilton Boston Downtown/ 403 $236.15$139.1969.7 %82.3%12.3%70.0 %$194.26$17.09 1,036.7%Faneuil Hall

Hilton Burlington 258 $304.18$176.5272.3 %83.1%22.4%60.7 %$252.78$39.55 539.1 %Lake Champlain

Hilton Garden Inn New York/ 282 $178.29$- 100.0%89.6%- %89.6 %$159.71$- 100.0 %Times Square Central

Hotel Emblem San 96 $163.36$141.4015.5 %61.4%14.3%47.1 %$100.30$20.22 396.0 %Francisco

Hotel Palomar 242 $166.94$118.1341.3 %56.3%28.8%27.5 %$93.95 $34.05 175.9 %Phoenix

JW Marriott Denver 199 $291.32$204.2842.6 %77.5%39.4%38.1 %$225.78$80.55 180.3 %Cherry Creek

Kimpton Shorebreak 157 $390.89$290.8034.4 %79.9%53.5%26.4 %$312.46$155.54100.9 %Resort

L'Auberge 88 $833.84$606.7737.4 %73.0%76.5%(3.5) %$609.01$464.4531.1 %de Sedona

Orchards 70 $263.02$197.7233.0 %66.1%59.5%6.6 %$173.86$117.5647.9 %Inn Sedona

Renaissance Charleston Historic 167 $322.94$174.2085.4 %89.8%44.5%45.3 %$290.15$77.55 274.1 %District Hotel

Salt Lake City Marriott 510 $166.22$122.1636.1 %56.4%12.9%43.5 %$93.79 $15.76 495.1 %Downtown at City Creek

The Gwen 311 $271.16$196.2238.2 %71.3%20.8%50.5 %$193.23$40.74 374.3 %Hotel

The Landing Lake Tahoe 82 $725.58$494.0546.9 %42.1%78.5%(36.4)%$305.18$387.76(21.3) %Resort & Spa

The Lodge at Sonoma Renaissance182 $424.58$248.2971.0 %72.0%43.6%28.4 %$305.73$108.28182.4 %Resort & Spa

Vail Marriott 344 $262.06$228.6614.6 %45.9%36.0%9.9 %$120.41$82.35 46.2 %Mountain Resort

Westin Boston 793 $210.10$141.0848.9 %63.9%3.8 %60.1 %$134.26$5.36 2,404.9%Waterfront

Westin Fort Lauderdale 433 $200.44$136.4047.0 %57.6%29.5%28.1 %$115.37$40.29 186.3 %Beach Resort

Westin San Diego 436 $174.42$144.6920.5 %74.2%23.0%51.2 %$129.40$33.27 288.9 %Downtown

Westin Washington 410 $143.36$122.4817.0 %43.7%9.0 %34.7 %$62.66 $11.00 469.6 %D.C. City Center

Worthington Renaissance504 $146.48$141.753.3 %62.7%17.4%45.3 %$91.79 $24.66 272.2 %Fort Worth Hotel

Comparable 9,133$238.34$209.0714.0 %65.1%19.9%45.2 %$155.17$41.55 273.5 %Total ^(3)



Resorts - 2,470$356.79$271.5931.4 %66.8%38.4%28.4 %$238.24$104.24128.5 %14 Hotels

^ Hotel was acquired on July 29, 2021. Amounts reflect the operating results(1) for the period from July 29, 2021 to September 30, 2021 and July 29, 2020 to September 30, 2020.

^ Hotel was acquired on July 30, 2021. Amounts reflect the operating results(2) for the period from July 30, 2021 to September 30, 2021 and July 30, 2020 to September 30, 2020.

^ Amounts include the pre-acquisition operating results of the two hotels(3) acquired in 2021 and exclude the two hotels sold in 2021.

Operating Statistics - Third Quarter

NumberADR Occupancy RevPAR of Rooms 3Q 2021 3Q 2019 B/(W) 3Q 3Q B/(W) 3Q 2021 3Q 2019 B/(W) 2019 2021 2019 2019 2019





Atlanta Marriott 318 $119.77$163.80(26.9)%63.2%72.9%(9.7) %$75.75 $119.41(36.6)%Alpharetta

Barbary Beach House186 $382.97$205.4786.4 %76.3%61.4%14.9 %$292.20$126.16131.6 %Key West

Bethesda Marriott 272 $118.48$167.95(29.5)%41.1%70.4%(29.3)%$48.73 $118.20(58.8)%Suites

Bourbon Orleans 218 $189.19$189.73(0.3) %55.9%77.2%(21.3)%$105.73$146.38(27.8)%Hotel ^(1)

Cavallo Point, The Lodge at 142 $697.33$469.3648.6 %58.6%68.1%(9.5) %$408.40$319.7227.7 %the Golden Gate

Chicago Marriott Downtown 1,200$204.01$239.22(14.7)%54.4%82.5%(28.1)%$110.97$197.32(43.8)%Magnificent Mile

Courtyard Denver 177 $198.04$218.40(9.3) %77.0%85.9%(8.9) %$152.42$187.70(18.8)%Downtown

Courtyard New York Manhattan/ 189 $188.42$256.72(26.6)%94.3%91.6%2.7 %$177.64$235.21(24.5)%Fifth Avenue

Courtyard New York Manhattan/ 321 $221.26$266.37(16.9)%77.5%97.4%(19.9)%$171.52$259.56(33.9)%Midtown East

Havana Cabana Key 106 $289.47$170.1370.1 %85.6%85.9%(0.3) %$247.92$146.1369.7 %West

Henderson Park Inn ^ 37 $630.12$506.6124.4 %91.9%85.2%6.7 %$579.30$431.4234.3 %(2)

Hilton Boston Downtown/ 403 $236.15$342.48(31.0)%82.3%92.6%(10.3)%$194.26$317.16(38.8)%Faneuil Hall

Hilton Burlington 258 $304.18$244.0324.6 %83.1%90.1%(7.0) %$252.78$219.9714.9 %Lake Champlain

Hilton Garden Inn New York/ 282 $178.29$249.41(28.5)%89.6%98.7%(9.1) %$159.71$246.24(35.1)%Times Square Central

Hotel Emblem San 96 $163.36$247.06(33.9)%61.4%91.7%(30.3)%$100.30$226.47(55.7)%Francisco

Hotel Palomar 242 $166.94$143.5516.3 %56.3%73.4%(17.1)%$93.95 $105.30(10.8)%Phoenix

JW Marriott Denver 199 $291.32$262.0411.2 %77.5%85.9%(8.4) %$225.78$225.200.3 %Cherry Creek

Kimpton Shorebreak 157 $390.89$306.5427.5 %79.9%81.8%(1.9) %$312.46$250.7224.6 %Resort

L'Auberge 88 $833.84$533.7956.2 %73.0%71.7%1.3 %$609.01$382.6159.2 %de Sedona

Orchards 70 $263.02$207.0927.0 %66.1%74.3%(8.2) %$173.86$153.9712.9 %Inn Sedona

Renaissance Charleston Historic 167 $322.94$239.4034.9 %89.8%77.9%11.9 %$290.15$186.3855.7 %District Hotel

Salt Lake City Marriott 510 $166.22$179.29(7.3) %56.4%76.1%(19.7)%$93.79 $136.50(31.3)%Downtown at City Creek

The Gwen 311 $271.16$280.57(3.4) %71.3%91.3%(20.0)%$193.23$256.27(24.6)%Hotel

The Landing Lake Tahoe 82 $725.58$376.6092.7 %42.1%86.4%(44.3)%$305.18$325.43(6.2) %Resort & Spa

The Lodge at Sonoma Renaissance182 $424.58$349.5921.5 %72.0%83.8%(11.8)%$305.73$292.924.4 %Resort & Spa

Vail Marriott 344 $262.06$212.2523.5 %45.9%70.4%(24.5)%$120.41$149.45(19.4)%Mountain Resort

Westin Boston 793 $210.10$261.88(19.8)%63.9%84.5%(20.6)%$134.26$221.26(39.3)%Waterfront

Westin Fort Lauderdale 433 $200.44$144.1439.1 %57.6%69.6%(12.0)%$115.37$100.2915.0 %Beach Resort

Westin San Diego 436 $174.42$192.85(9.6) %74.2%86.0%(11.8)%$129.40$165.84(22.0)%Downtown

Westin Washington 410 $143.36$178.69(19.8)%43.7%90.7%(47.0)%$62.66 $162.01(61.3)%D.C. City Center

Worthington Renaissance504 $146.48$177.73(17.6)%62.7%69.5%(6.8) %$91.79 $123.48(25.7)%Fort Worth Hotel

Comparable 9,133$238.34$236.570.7 %65.1%81.6%(16.5)%$155.17$192.99(19.6)%Total ^(3)



Resorts - 2,470$356.79$256.0139.4 %66.8%75.8%(9.0) %$238.24$194.1122.7 %14 Hotels

^ Hotel was acquired on July 29, 2021. Amounts reflect the operating results(1) for the period from July 29, 2021 to September 30, 2021 and July 29, 2019 to September 30, 2019.

^ Hotel was acquired on July 30, 2021. Amounts reflect the operating results(2) for the period from July 30, 2021 to September 30, 2021 and July 30, 2019 to September 30, 2019.

^ Amounts include the pre-acquisition operating results of the two hotels(3) acquired in 2021 and exclude the two hotels sold in 2021.

Operating Statistics - Year to Date

NumberADR Occupancy RevPAR 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 318 $109.44$154.29(29.1)%45.3%23.8%21.5%$49.60 $36.70 35.1 %Alpharetta

Barbary Beach House186 $384.06$283.1635.6 %85.2%42.2%43.0%$327.16$119.54173.7 %Key West

Bethesda Marriott 272 $111.73$150.98(26.0)%30.6%23.6%7.0 %$34.20 $35.60 (3.9) %Suites

Bourbon Orleans 218 $189.19$- 100.0 %55.9%- %55.9%$105.73$- 100.0 %Hotel ^(1)

Cavallo Point, The Lodge at 142 $634.83$468.9735.4 %41.3%24.3%17.0%$262.11$114.14129.6 %the Golden Gate

Chicago Marriott Downtown 1,200$194.21$164.0918.4 %25.1%14.9%10.2%$48.76 $24.42 99.7 %Magnificent Mile

Courtyard Denver 177 $152.90$142.277.5 %59.5%27.0%32.5%$91.05 $38.47 136.7 %Downtown

Courtyard New York Manhattan/ 189 $181.14$206.17(12.1)%40.9%20.5%20.4%$74.06 $42.17 75.6 %Fifth Avenue

Courtyard New York Manhattan/ 321 $171.24$150.1914.0 %75.4%63.7%11.7%$129.17$95.61 35.1 %Midtown East

Havana Cabana Key 106 $284.07$221.7428.1 %91.1%55.5%35.6%$258.91$123.12110.3 %West

Henderson Park Inn ^ 37 $630.12$560.1212.5 %91.9%88.7%3.2 %$579.30$496.8416.6 %(2)

Hilton Boston Downtown/ 403 $193.40$183.505.4 %52.9%25.9%27.0%$102.27$47.58 114.9 %Faneuil Hall

Hilton Burlington 258 $230.48$149.3954.3 %59.4%20.6%38.8%$136.85$30.80 344.3 %Lake Champlain

Hilton Garden Inn New York/ 282 $169.24$154.359.6 %44.2%25.6%18.6%$74.86 $39.46 89.7 %Times Square Central

Hotel Emblem San 96 $152.78$235.06(35.0)%38.3%27.3%11.0%$58.49 $64.22 (8.9) %Francisco

Hotel Palomar 242 $158.13$195.61(19.2)%55.6%34.5%21.1%$87.86 $67.55 30.1 %Phoenix

JW Marriott Denver 199 $256.72$219.1717.1 %61.9%34.2%27.7%$158.94$75.00 111.9 %Cherry Creek

Kimpton Shorebreak 157 $322.91$237.6435.9 %66.0%54.6%11.4%$213.24$129.7764.3 %Resort

L'Auberge 88 $855.47$585.1646.2 %80.9%59.1%21.8%$692.17$345.92100.1 %de Sedona

Orchards 70 $287.73$204.0841.0 %69.9%44.7%25.2%$201.15$91.22 120.5 %Inn Sedona

Renaissance Charleston Historic 167 $299.52$206.8344.8 %79.2%41.7%37.5%$237.18$86.34 174.7 %District Hotel

Salt Lake City Marriott 510 $141.35$158.91(11.1)%43.3%22.9%20.4%$61.25 $36.39 68.3 %Downtown at City Creek

The Gwen 311 $244.80$194.1226.1 %48.7%28.1%20.6%$119.29$54.54 118.7 %Hotel

The Landing Lake Tahoe 82 $486.70$405.3720.1 %50.0%48.4%1.6 %$243.57$196.0624.2 %Resort & Spa

The Lodge at Sonoma Renaissance182 $345.68$240.6943.6 %56.7%29.9%26.8%$195.99$71.94 172.4 %Resort & Spa

Vail Marriott 344 $317.33$367.58(13.7)%46.0%34.0%12.0%$145.93$124.9316.8 %Mountain Resort

Westin Boston 793 $180.87$193.59(6.6) %38.6%21.2%17.4%$69.80 $40.95 70.5 %Waterfront

Westin Fort Lauderdale 433 $236.88$224.575.5 %60.2%42.8%17.4%$142.53$96.09 48.3 %Beach Resort

Westin San Diego 436 $157.46$175.26(10.2)%51.3%39.2%12.1%$80.71 $68.65 17.6 %Downtown

Westin Washington 410 $139.24$182.86(23.9)%25.8%23.6%2.2 %$35.88 $43.20 (16.9)%D.C. City Center

Worthington Renaissance504 $148.82$177.91(16.4)%51.2%28.7%22.5%$76.19 $51.10 49.1 %Fort Worth Hotel

Comparable 9,133$229.31$213.797.3 %47.4%29.3%18.1%$108.59$62.59 73.5 %Total^ (3)



Resorts - 2,470$342.25$286.9819.3 %62.5%38.2%24.3%$213.98$109.5795.3 %14 Hotels

^ Hotel was acquired on July 29, 2021. Amounts reflect the operating results(1) for the period from July 29, 2021 to September 30, 2021 and July 29, 2020 to September 30, 2020.

^ Hotel was acquired on July 30, 2021. Amounts reflect the operating results(2) for the period from July 30, 2021 to September 30, 2021 and July 30, 2020 to September 30, 2020.

^ Amounts include the pre-acquisition operating results of the two hotels(3) acquired in 2021 and exclude the two hotels sold in 2021. ^

Operating Statistics - Year to Date

NumberADR Occupancy RevPAR 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 318 $109.44$166.97(34.5)%45.3%72.7%(27.4)%$49.60 $121.42(59.2)%Alpharetta

Barbary Beach House186 $384.06$259.7147.9 %85.2%80.5%4.7 %$327.16$209.0856.5 %Key West

Bethesda Marriott 272 $111.73$176.98(36.9)%30.6%73.0%(42.4)%$34.20 $129.23(73.5)%Suites

Bourbon Orleans 218 $189.19$189.73(0.3) %55.9%77.2%(21.3)%$105.73$146.38(27.8)%Hotel ^(1)

Cavallo Point, The Lodge at 142 $634.83$458.6038.4 %41.3%65.2%(23.9)%$262.11$298.90(12.3)%the Golden Gate

Chicago Marriott Downtown 1,200$194.21$225.86(14.0)%25.1%72.7%(47.6)%$48.76 $164.20(70.3)%Magnificent Mile

Courtyard Denver 177 $152.90$200.80(23.9)%59.5%81.1%(21.6)%$91.05 $162.75(44.1)%Downtown

Courtyard New York Manhattan/ 189 $181.14$248.54(27.1)%40.9%86.7%(45.8)%$74.06 $215.49(65.6)%Fifth Avenue

Courtyard New York Manhattan/ 321 $171.24$244.82(30.1)%75.4%95.6%(20.2)%$129.17$234.03(44.8)%Midtown East

Havana Cabana Key 106 $284.07$210.1935.1 %91.1%90.3%0.8 %$258.91$189.7836.4 %West

Henderson Park Inn ^ 37 $630.12$506.6124.4 %91.9%85.2%6.7 %$579.30$431.4234.3 %(2)

Hilton Boston Downtown/ 403 $193.40$308.79(37.4)%52.9%88.9%(36.0)%$102.27$274.58(62.8)%Faneuil Hall

Hilton Burlington 258 $230.48$193.5619.1 %59.4%81.7%(22.3)%$136.85$158.11(13.4)%Lake Champlain

Hilton Garden Inn New York/ 282 $169.24$235.87(28.2)%44.2%98.5%(54.3)%$74.86 $232.29(67.8)%Times Square Central

Hotel Emblem San 96 $152.78$240.00(36.3)%38.3%78.9%(40.6)%$58.49 $189.34(69.1)%Francisco

Hotel Palomar 242 $158.13$185.74(14.9)%55.6%82.7%(27.1)%$87.86 $153.51(42.8)%Phoenix

JW Marriott Denver 199 $256.72$258.63(0.7) %61.9%70.8%(8.9) %$158.94$183.12(13.2)%Cherry Creek

Kimpton Shorebreak 157 $322.91$268.5720.2 %66.0%78.7%(12.7)%$213.24$211.270.9 %Resort

L'Auberge 88 $855.47$596.0543.5 %80.9%78.6%2.3 %$692.17$468.4247.8 %de Sedona

Orchards 70 $287.73$244.3317.8 %69.9%77.7%(7.8) %$201.15$189.965.9 %Inn Sedona

Renaissance Charleston Historic 167 $299.52$260.9214.8 %79.2%84.0%(4.8) %$237.18$219.098.3 %District Hotel

Salt Lake City Marriott 510 $141.35$173.43(18.5)%43.3%69.4%(26.1)%$61.25 $120.42(49.1)%Downtown at City Creek

The Gwen 311 $244.80$256.86(4.7) %48.7%83.3%(34.6)%$119.29$213.95(44.2)%Hotel

The Landing Lake Tahoe 82 $486.70$321.1351.6 %50.0%65.4%(15.4)%$243.57$210.1115.9 %Resort & Spa

The Lodge at Sonoma Renaissance182 $345.68$310.2711.4 %56.7%74.3%(17.6)%$195.99$230.57(15.0)%Resort & Spa

Vail Marriott 344 $317.33$298.076.5 %46.0%65.6%(19.6)%$145.93$195.66(25.4)%Mountain Resort

Westin Boston 793 $180.87$251.43(28.1)%38.6%78.4%(39.8)%$69.80 $197.05(64.6)%Waterfront

Westin Fort Lauderdale 433 $236.88$204.3815.9 %60.2%81.8%(21.6)%$142.53$167.26(14.8)%Beach Resort

Westin San Diego 436 $157.46$194.30(19.0)%51.3%82.0%(30.7)%$80.71 $159.39(49.4)%Downtown

Westin Washington 410 $139.24$206.84(32.7)%25.8%86.9%(61.1)%$35.88 $179.77(80.0)%D.C. City Center

Worthington Renaissance504 $148.82$186.24(20.1)%51.2%75.4%(24.2)%$76.19 $140.50(45.8)%Fort Worth Hotel

Comparable 9,133$229.31$235.67(2.7) %47.4%79.0%(31.6)%$108.59$186.12(41.7)%Total^ (3)



Resorts - 2,470$342.25$272.0825.8 %62.5%77.0%(14.5)%$213.98$209.562.1 %14 Hotels

^ Hotel was acquired on July 29, 2021. Amounts reflect the operating results(1) for the period from July 29, 2021 to September 30, 2021 and July 29, 2019 to September 30, 2019.

^ Hotel was acquired on July 30, 2021. Amounts reflect the operating results(2) for the period from July 30, 2021 to September 30, 2021 and July 30, 2019 to September 30, 2019.

^ Amounts include the pre-acquisition operating results of the two hotels(3) acquired in 2021 and exclude the two hotels sold in 2021.

Hotel Adjusted EBITDA Reconciliation

Third Quarter 2021

Plus: Plus: Plus: Equals: Hotel Days of Net Income OperationTotal / (Loss) DepreciationInterest ExpenseAdjustments^ (1)Adjusted EBITDA Revenues

Atlanta Marriott 92 $2,843 $426 $342 $- $ - $ 768 Alpharetta

Barbary Beach House Key92 $6,354 $2,103 $728 $- $ - $ 2,831 West

Bethesda Marriott 92 $1,553 $(2,390) $532 $- $ 1,490 $ (368) Suites

Bourbon Orleans Hotel 64 $1,646 $(91) $543 $- $ 4 $ 456

Cavallo Point, The Lodge at the Golden 92 $11,455 $1,697 $2,023 $- $ 94 $ 3,814 Gate

Chicago Marriott Downtown Magnificent 92 $17,320 $1,508 $4,069 $6 $ (397) $ 5,186 Mile

Courtyard Denver 92 $2,755 $959 $376 $- $ - $ 1,335 Downtown

Courtyard New York 92 $3,146 $(973) $329 $- $ 253 $ (391) Manhattan/Fifth Avenue

Courtyard New York 92 $5,211 $(938) $479 $934 $ - $ 475 Manhattan/Midtown East

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

Havana Cabana Key West 92 $3,282 $1,129 $267 $- $ - $ 1,396

Henderson Park Inn 63 $1,813 $696 $150 $- $ - $ 846

Hilton Boston Downtown/92 $7,748 $980 $1,052 $- $ - $ 2,032 Faneuil Hall

Hilton Burlington Lake 92 $6,529 $2,683 $571 $- $ - $ 3,254 Champlain

Hilton Garden Inn New York/Times Square 92 $4,236 $(918) $765 $- $ - $ (153) Central

Hotel Emblem San 92 $1,027 $(305) $307 $- $ - $ 2 Francisco

Hotel Palomar Phoenix 92 $3,416 $(410) $672 $- $ 282 $ 544

JW Marriott Denver 92 $6,507 $757 $779 $665 $ 5 $ 2,206 Cherry Creek

Kimpton Shorebreak 92 $6,345 $2,121 $410 $- $ - $ 2,531 Resort

L'Auberge de Sedona 92 $7,298 $1,790 $371 $- $ - $ 2,161

Orchards Inn Sedona 92 $1,932 $298 $82 $- $ 42 $ 422

Renaissance Charleston 92 $5,729 $1,933 $462 $- $ - $ 2,395 Historic District Hotel

Salt Lake City Marriott92 $5,932 $1,017 $513 $520 $ 11 $ 2,061 Downtown at City Creek

The Gwen Hotel 92 $8,616 $1,605 $1,085 $- $ - $ 2,690

The Landing Lake Tahoe 92 $3,501 $1,055 $434 $- $ - $ 1,489 Resort & Spa

The Lexington Hotel - $- $(178) $- $- $ - $ (178)

The Lodge at Sonoma 92 $7,674 $1,452 $620 $268 $ - $ 2,340 Resort

Vail Marriott Mountain 92 $4,971 $(224) $1,064 $- $ - $ 840 Resort

Westin Boston Seaport 92 $14,033 $(2,624) $2,531 $2,094 $ (122) $ 1,879 District

Westin Fort Lauderdale 92 $10,875 $515 $1,064 $- $ - $ 1,579 Beach Resort

Westin San Diego 92 $6,335 $551 $802 $604 $ - $ 1,957 Downtown

Westin Washington D.C. 92 $2,858 $(2,011) $1,019 $617 $ - $ (375) City Center

Worthington Renaissance92 $6,532 $(626) $1,114 $753 $ 2 $ 1,243 Fort Worth Hotel

Total $179,472$13,587 $25,555 $6,461 $ 1,664 $ 47,268

Prior Ownership Results $2,044 $645 $188 $- $ - $ 833 ^(2)

Less: Sold Hotels ^(3) $- $178 $- $- $ - $ 178

Comparable Total $181,516$14,410 $25,743 $6,461 $ 1,664 $ 48,279

^ 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 pre-acquisition operating results of the Bourbon(2) Orleans Hotel from July 1, 2021 to July 28, 2021 and Henderson Park Inn from July 1, 2021 to July 29, 2021.

^ Amounts represent the operating results of Frenchman's Reef and The(3) Lexington Hotel.

Hotel Adjusted EBITDA Reconciliation

Third Quarter 2020

Plus: Plus: Plus: Equals: Hotel Net Income Days of Total / (Loss) DepreciationInterest ExpenseAdjustments^ (1)Adjusted EBITDA OperationRevenues

Atlanta Marriott 92 $434 $(958) $357 $- $- $ (601) Alpharetta

Barbary Beach House Key92 $1,586 $(924) $669 $- $- $ (255) West

Bethesda Marriott 92 $577 $(2,735) $522 $- $1,502 $ (711) Suites

Cavallo Point, The Lodge at the Golden 92 $3,565 $(1,755) $1,841 $- $94 $ 180 Gate

Chicago Marriott Downtown Magnificent 30 $615 $(8,789) $4,155 $62 $(397) $ (4,969) Mile

Courtyard Denver 92 $674 $(452) $373 $- $- $ (79) Downtown

Courtyard New York - $52 $(2,108) $331 $- $253 $ (1,524) Manhattan/Fifth Avenue

Courtyard New York 92 $1,551 $(2,680) $488 $952 $- $ (1,240) Manhattan/Midtown East

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

Havana Cabana Key West 92 $1,668 $77 $274 $- $- $ 351

Hilton Boston Downtown/62 $1,070 $(1,840) $1,239 $- $- $ (601) Faneuil Hall

Hilton Burlington Lake 77 $1,135 $(680) $627 $- $- $ (53) Champlain

Hilton Garden Inn New York/Times Square - $55 $(2,103) $846 $- $- $ (1,257) Central

Hotel Emblem San 92 $220 $(642) $386 $- $- $ (256) Francisco

Hotel Palomar Phoenix 92 $1,192 $(1,298) $672 $39 $286 $ (301)

JW Marriott Denver 92 $2,382 $(1,655) $782 $679 $6 $ (188) Cherry Creek

Kimpton Shorebreak 92 $3,265 $687 $411 $- $- $ 1,098 Resort

L'Auberge de Sedona 92 $5,461 $1,476 $640 $- $- $ 2,116

Orchards Inn Sedona 92 $1,046 $(16) $80 $- $42 $ 106

Renaissance Charleston 92 $1,409 $(495) $432 $- $(21) $ (84) Historic District Hotel

Salt Lake City Marriott92 $1,038 $(1,826) $552 $538 $- $ (736) Downtown at City Creek

The Gwen Hotel 92 $1,867 $(1,830) $1,104 $- $- $ (726)

The Landing Lake Tahoe 92 $4,217 $1,730 $416 $- $- $ 2,146 Resort & Spa

The Lexington Hotel - $153 $(5,235) $2,445 $6 $8 $ (2,776)

The Lodge at Sonoma 92 $2,329 $(1,421) $478 $274 $- $ (669) Resort

Vail Marriott Mountain 92 $3,851 $(601) $1,117 $- $- $ 516 Resort

Westin Boston Seaport 28 $877 $(7,859) $2,593 $2,140 $(60) $ (3,186) District

Westin Fort Lauderdale 92 $4,003 $(1,966) $1,118 $- $- $ (848) Beach Resort

Westin San Diego 92 $1,600 $(2,444) $1,124 $621 $- $ (699) Downtown

Westin Washington D.C. 92 $486 $(3,290) $1,316 $640 $- $ (1,334) City Center

Worthington Renaissance92 $1,689 $(2,685) $1,126 $769 $2 $ (788) Fort Worth Hotel

Total $50,067$(54,317)$28,514 $6,720 $1,715 $ (17,368)

Add: Prior Ownership $2,317 $(224) $563 $- $- $ 339 Results ^(2)

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)

^ 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 pre-acquisition operating results of the Bourbon(2) Orleans Hotel and Henderson Park Inn from July 1, 2020 to September 30, 2020.

^ Amounts represent the operating results of Frenchman's Reef and The(3) Lexington Hotel.

Hotel Adjusted EBITDA Reconciliation

Third Quarter 2019

Plus: Plus: Plus: Equals: Hotel Days of Total Net Income DepreciationInterest ExpenseAdjustments^ (1)Adjusted EBITDA OperationRevenues / (Loss)

Atlanta Marriott 92 $4,787 $1,123 $455 $- $- $ 1,578 Alpharetta

Barbary Beach House Key92 $2,666 $(55) $351 $- $- $ 296 West

Bethesda Marriott 92 $3,880 $(1,078) $471 $- $1,514 $ 907 Suites

Cavallo Point, The Lodge at the Golden 92 $10,633 $1,327 $1,828 $- $79 $ 3,234 Gate

Chicago Marriott Downtown Magnificent 92 $32,503 $6,887 $4,166 $(8) $(397) $ 10,648 Mile

Courtyard Denver 92 $3,344 $1,393 $298 $- $- $ 1,691 Downtown

Courtyard New York 92 $4,191 $103 $449 $- $253 $ 805 Manhattan/Fifth Avenue

Courtyard New York 92 $7,909 $570 $697 $970 $- $ 2,237 Manhattan/Midtown East

Frenchman's Reef & Morning Star Marriott - $1 $(2) $- $- $- $ (2) Beach Resort

Havana Cabana Key West 92 $1,996 $87 $260 $- $- $ 347

Hilton Boston Downtown/92 $12,504 $4,271 $1,231 $- $- $ 5,502 Faneuil Hall

Hilton Burlington Lake 92 $6,121 $2,451 $486 $- $- $ 2,937 Champlain

Hilton Garden Inn New York/Times Square 92 $6,508 $944 $838 $- $- $ 1,782 Central

Hotel Emblem San 92 $2,305 $399 $297 $- $- $ 696 Francisco

Hotel Palomar Phoenix 92 $4,325 $(424) $662 $39 $295 $ 572

JW Marriott Denver 92 $5,907 $269 $746 $692 $6 $ 1,713 Cherry Creek

Kimpton Shorebreak 92 $5,281 $1,808 $348 $- $40 $ 2,196 Resort

L'Auberge de Sedona 92 $5,636 $727 $508 $- $- $ 1,235

Orchards Inn Sedona 92 $1,598 $(11) $238 $- $42 $ 269

Renaissance Charleston 92 $3,398 $642 $421 $- $(32) $ 1,031 Historic District Hotel

Salt Lake City Marriott92 $8,849 $2,368 $575 $608 $- $ 3,551 Downtown at City Creek

The Gwen Hotel 92 $10,771 $3,256 $1,077 $- $- $ 4,333

The Landing Lake Tahoe 92 $4,060 $1,086 $418 $- $- $ 1,504 Resort & Spa

The Lexington Hotel 92 $18,337 $1,319 $3,607 $6 $8 $ 4,940

The Lodge at Sonoma 92 $7,549 $2,070 $508 $281 $- $ 2,859 Resort

Vail Marriott Mountain 92 $8,109 $1,140 $1,011 $- $- $ 2,151 Resort

Westin Boston Seaport 92 $24,009 $2,413 $2,418 $2,182 $(60) $ 6,953 District

Westin Fort Lauderdale 92 $8,131 $(949) $1,675 $- $- $ 726 Beach Resort

Westin San Diego 92 $8,654 $1,439 $1,135 $637 $- $ 3,211 Downtown

Westin Washington D.C. 92 $7,829 $280 $1,310 $663 $- $ 2,253 City Center

Worthington Renaissance92 $8,488 $(132) $990 $784 $2 $ 1,644 Fort Worth Hotel

Total $240,279 $35,721 $29,474 $6,854 $1,750 $ 73,748

Add: Prior Ownership $6,045 $1,193 $563 $- $- $ 1,756 Results ^(2)

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

^ 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 pre-acquisition operating results of the Bourbon(2) Orleans Hotel and Henderson Park Inn from July 1, 2019 to September 30, 2019.

^ Amounts represent the operating results of Frenchman's Reef and The(3) Lexington Hotel.

Hotel Adjusted EBITDA Reconciliation

Year to Date 2021

Days of Total Net Income Plus: Plus: Plus: Equals: Hotel OperationRevenues / (Loss) Depreciation Adjustments Interest Expense^(1) Adjusted EBITDA

Atlanta Marriott 273 $5,374 $(308) $1,037 $- $- $729 Alpharetta

Barbary Beach House Key273 $20,942 $9,049 $2,159 $- $- $11,208 West

Bethesda Marriott 273 $3,119 $(7,484) $1,570 $- $4,486 $(1,428) Suites

Bourbon Orleans Hotel 64 $1,646 $(91) $543 $- $4 $456

Cavallo Point, The Lodge at the Golden 273 $21,678 $885 $5,698 $- $281 $6,864 Gate

Chicago Marriott Downtown Magnificent 171 $22,544 $(10,294)$12,247 $54 $(1,192) $815 Mile

Courtyard Denver 273 $5,042 $696 $1,135 $- $- $1,831 Downtown

Courtyard New York 122 $3,980 $(4,184) $986 $- $760 $(2,438) Manhattan/Fifth Avenue

Courtyard New York 273 $11,540 $(5,226) $1,439 $2,786 $- $(1,001) Manhattan/Midtown East

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

Havana Cabana Key West 273 $10,234 $3,990 $808 $- $- $4,798

Henderson Park Inn 63 $1,813 $696 $150 $- $- $846

Hilton Boston Downtown/273 $12,399 $(2,635) $3,194 $- $- $559 Faneuil Hall

Hilton Burlington Lake 273 $10,485 $2,186 $1,819 $- $- $4,005 Champlain

Hilton Garden Inn New York/Times Square 151 $5,870 $(4,955) $2,444 $- $- $(2,511) Central

Hotel Emblem San 273 $1,799 $(1,660) $922 $- $- $(738) Francisco

Hotel Palomar Phoenix 273 $9,491 $(919) $2,027 $- $852 $1,960

JW Marriott Denver 273 $13,930 $(819) $2,352 $1,983 $14 $3,530 Cherry Creek

Kimpton Shorebreak 273 $13,101 $3,419 $1,235 $- $- $4,654 Resort

L'Auberge de Sedona 273 $23,897 $7,810 $1,284 $- $- $9,094

Orchards Inn Sedona 273 $6,492 $1,902 $246 $- $126 $2,274

Renaissance Charleston 273 $13,491 $4,019 $1,378 $- $- $5,397 Historic District Hotel

Salt Lake City Marriott273 $11,495 $(206) $1,557 $1,555 $21 $2,927 Downtown at City Creek

The Gwen Hotel 273 $15,657 $(910) $3,273 $- $- $2,363

The Landing Lake Tahoe 273 $8,028 $2,167 $1,268 $- $- $3,435 Resort & Spa

The Lexington Hotel - $60 $(6,618) $1,925 $13 $16 $(4,664)

The Lodge at Sonoma 273 $14,621 $720 $1,629 $799 $- $3,148 Resort

Vail Marriott Mountain 273 $18,183 $3,211 $3,019 $- $- $6,230 Resort

Westin Boston Seaport 273 $21,664 $(15,845)$7,608 $6,250 $(367) $(2,354) District

Westin Fort Lauderdale 273 $35,810 $6,296 $3,217 $- $- $9,513 Beach Resort

Westin San Diego 273 $11,772 $(2,341) $2,468 $1,806 $- $1,933 Downtown

Westin Washington D.C. 273 $4,664 $(7,625) $3,229 $1,849 $- $(2,547) City Center

Worthington Renaissance273 $16,379 $(4,051) $3,343 $2,246 $6 $1,544 Fort Worth Hotel

Total $377,200$(29,125)$77,209 $19,341 $5,007 $72,475

Add: Prior Ownership $6,406 $(425) $1,313 $- $- $888 Results ^(2)

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

^ 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 pre-acquisition operating results of the Bourbon(2) Orleans Hotel from January 1, 2021 to July 28, 2021 and Henderson Park Inn from January 1, 2021 to July 29, 2021.

^ Amounts represent the operating results of Frenchman's Reef and The(3) Lexington Hotel.

Hotel Adjusted EBITDA Reconciliation

Year to Date 2020

Plus: Plus: Plus: Equals: Hotel Days of Total Net Income / OperationRevenues (Loss) DepreciationInterest ExpenseAdjustments^ Adjusted EBITDA (1)

Atlanta Marriott 274 $4,693 $(1,183) $1,091 $- $- $(92) Alpharetta

Barbary Beach House Key204 $7,510 $(1,008) $2,026 $- $- $1,018 West

Bethesda Marriott 274 $3,555 $(7,790) $1,728 $- $4,522 $(1,540) Suites

Cavallo Point, The Lodge at the Golden 175 $11,417 $(5,762) $5,547 $- $281 $66 Gate

Chicago Marriott Downtown Magnificent 130 $14,459 $(25,975) $12,559 $170 $(1,192) $(14,438) Mile

Courtyard Denver 201 $2,338 $(1,167) $1,092 $- $- $(75) Downtown

Courtyard New York 86 $2,377 $(5,638) $1,111 $- $760 $(3,767) Manhattan/Fifth Avenue

Courtyard New York 274 $8,670 $(6,610) $1,779 $2,875 $- $(1,956) Manhattan/Midtown East

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

Havana Cabana Key West 204 $4,832 $368 $799 $- $- $1,167

Hilton Boston Downtown/144 $6,589 $(5,223) $3,686 $- $- $(1,537) Faneuil Hall

Hilton Burlington Lake 167 $2,832 $(2,666) $1,632 $- $- $(1,034) Champlain

Hilton Garden Inn New York/Times Square 88 $3,276 $(6,342) $2,536 $- $- $(3,806) Central

Hotel Emblem San 179 $2,062 $(1,434) $962 $- $- $(472) Francisco

Hotel Palomar Phoenix 192 $8,036 $(1,519) $2,017 $116 $865 $1,479

JW Marriott Denver 203 $6,043 $(5,200) $2,124 $2,031 $18 $(1,027) Cherry Creek

Kimpton Shorebreak 274 $8,301 $643 $1,230 $- $27 $1,900 Resort

L'Auberge de Sedona 274 $12,643 $963 $2,000 $- $- $2,963

Orchards Inn Sedona 229 $2,655 $(387) $377 $- $126 $116

Renaissance Charleston 236 $5,101 $(732) $1,279 $- $(85) $462 Historic District Hotel

Salt Lake City Marriott274 $8,666 $(2,524) $1,663 $1,712 $- $851 Downtown at City Creek

The Gwen Hotel 203 $6,872 $(5,790) $3,327 $- $- $(2,463)

The Landing Lake Tahoe 200 $6,664 $903 $1,251 $- $- $2,154 Resort & Spa

The Lexington Hotel 88 $8,857 $(19,230) $9,107 $18 $24 $(10,081)

The Lodge at Sonoma 172 $5,934 $(4,159) $1,375 $822 $- $(1,962) Resort

Vail Marriott Mountain 190 $16,413 $472 $3,348 $- $- $3,820 Resort

Westin Boston Seaport 112 $17,551 $(19,193) $7,762 $6,405 $(180) $(5,206) District

Westin Fort Lauderdale 274 $23,075 $1,659 $3,263 $- $- $4,922 Beach Resort

Westin San Diego 274 $11,684 $(3,383) $3,385 $1,861 $- $1,863 Downtown

Westin Washington D.C. 274 $6,022 $(8,319) $3,958 $1,925 $- $(2,436) City Center

Worthington Renaissance274 $11,314 $(6,490) $3,383 $2,302 $6 $(799) Fort Worth Hotel

Total $240,441$(142,716)$87,397 $20,237 $5,172 $(29,907)

Add: Prior Ownership $8,435 $(415) $1,688 $- $- $1,273 Results ^(2)

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)

^ 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 pre-acquisition operating results of the Bourbon(2) Orleans Hotel and Henderson Park Inn from January 1, 2020 to September 30, 2020.

^ Amounts represent the operating results of Frenchman's Reef and The(3) Lexington Hotel.

Hotel Adjusted EBITDA Reconciliation

Year to Date 2019

Plus: Plus: Plus: Equals: Hotel Days of Total Net Income OperationRevenues / (Loss) DepreciationInterest ExpenseAdjustments^Adjusted EBITDA (1)

Atlanta Marriott 273 $14,959 $3,891 $ 1,389 $- $- $5,280 Alpharetta

Barbary Beach House Key273 $12,906 $3,557 $ 1,033 $- $- $4,590 West

Bethesda Marriott 273 $13,051 $(2,031)$ 1,422 $- $4,555 $3,946 Suites

Cavallo Point, The Lodge at the Golden 273 $30,600 $2,374 $ 5,557 $- $221 $8,152 Gate

Chicago Marriott Downtown Magnificent 273 $83,224 $12,127 $ 12,461 $110 $(1,192) $23,506 Mile

Courtyard Denver 273 $8,881 $3,407 $ 881 $- $- $4,288 Downtown

Courtyard New York 273 $11,417 $(519) $ 1,330 $- $760 $1,571 Manhattan/Fifth Avenue

Courtyard New York 273 $21,213 $(70) $ 2,077 $2,891 $- $4,898 Manhattan/Midtown East

Frenchman's Reef & Morning Star Marriott - $- $8,798 $ - $- $- $8,798 Beach Resort

Havana Cabana Key West 273 $7,351 $2,035 $ 740 $- $- $2,775

Hilton Boston Downtown/273 $32,337 $9,124 $ 3,708 $- $- $12,832 Faneuil Hall

Hilton Burlington Lake 273 $14,031 $3,917 $ 1,500 $- $- $5,417 Champlain

Hilton Garden Inn New York/Times Square 273 $18,222 $1,731 $ 2,509 $- $- $4,240 Central

Hotel Emblem San 273 $5,649 $323 $ 868 $- $- $1,191 Francisco

Hotel Palomar Phoenix 273 $18,008 $2,319 $ 1,991 $116 $885 $5,311

JW Marriott Denver 273 $14,380 $(944) $ 1,975 $2,062 $18 $3,111 Cherry Creek

Kimpton Shorebreak 273 $13,704 $3,586 $ 1,046 $- $121 $4,753 Resort

L'Auberge de Sedona 273 $19,259 $3,688 $ 1,525 $- $- $5,213

Orchards Inn Sedona 273 $5,890 $884 $ 713 $- $126 $1,723

Renaissance Charleston 273 $11,566 $3,438 $ 1,242 $- $(95) $4,585 Historic District Hotel

Salt Lake City Marriott273 $23,586 $5,120 $ 1,680 $1,818 $- $8,618 Downtown at City Creek

The Gwen Hotel 273 $25,709 $4,030 $ 3,285 $- $- $7,315

The Landing Lake Tahoe 273 $7,618 $294 $ 1,179 $- $- $1,473 Resort & Spa

The Lexington Hotel 273 $47,872 $(1,778)$ 10,697 $17 $24 $8,960

The Lodge at Sonoma 273 $19,023 $3,234 $ 1,571 $840 $- $5,645 Resort

Vail Marriott Mountain 273 $27,989 $6,063 $ 3,035 $- $- $9,098 Resort

Westin Boston Seaport 273 $70,991 $6,286 $ 7,266 $6,506 $(180) $19,878 District

Westin Fort Lauderdale 273 $38,246 $7,223 $ 4,853 $- $- $12,076 Beach Resort

Westin San Diego 273 $26,333 $4,769 $ 3,397 $1,901 $- $10,067 Downtown

Westin Washington D.C. 273 $25,238 $2,075 $ 3,948 $1,986 $- $8,009 City Center

Worthington Renaissance273 $31,319 $5,597 $ 2,927 $2,340 $6 $10,870 Fort Worth Hotel

Total $700,572 $104,548$ 87,805 $20,587 $5,249 $218,028

Add: Prior Ownership $19,194 $4,619 $ 1,688 $- $- $6,307 Results ^(2)

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

^ 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 pre-acquisition operating results of the Bourbon(2) Orleans Hotel and Henderson Park Inn from January 1, 2019 to September 30, 2019.

^ Amounts represent the operating results of Frenchman's Reef and The(3) Lexington Hotel.

View original content: https://www.prnewswire.com/news-releases/diamondrock-hospitality-company-reports-third-quarter-results-301417072.html

SOURCE DiamondRock Hospitality Company