PR Newswire | Nov 5, 2020 04:07PM EST

11/05 15:05 CST

DiamondRock Hospitality Company Reports Third Quarter 2020 ResultsSignificantly Improves Cash Burn RateBolsters Liquidity to $434.5 Million BETHESDA, Md., Nov. 5, 2020

BETHESDA, Md., Nov. 5, 2020/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, 2020.

"Confronted with the disruption in travel demand caused by the COVID-19 pandemic, I want to commend the DiamondRock team for their unwavering dedication to executing our multi-prong pandemic response plan," said Mark W. Brugger, President and Chief Executive Officer of DiamondRock Hospitality Company. "Our quarterly cash burn rate significantly outperformed our original expectations as the result of relentless efforts by our asset managers and hotel operators. While our current focus remains centered on balance sheet strength, bolstered by our recent preferred equity offering, we are also taking steps to emerge from the pandemic as an even better company. During the quarter we converted five long-term management agreements to terminable-at-will agreements, distinguishing DiamondRock with the most flexible and least management-encumbered portfolio of any full-service hotel REIT."

Third Quarter 2020 Highlights:

* Hotel Operations: The Company initially suspended operations at 20 of its 30 previously operating hotels throughout March and early April either under governmental orders or due to lack of travel demand caused by the pandemic. The Company reopened 12 hotels during the second quarter and 5 additional hotels during the third quarter as governmental orders were modified or lifted and leisure demand began to return. The Company currently has 27 of its 30 operating hotels open. * Net Loss: Net loss was $79.6 million and loss per diluted share was $0.40. * Comparable Revenues: Comparable total revenues decreased 79.2% from the comparable period of 2019. * Comparable RevPAR: RevPAR decreased 81.0% from the comparable period of 2019. * Hotel Adjusted EBITDA: Hotel Adjusted EBITDA was ($17.4) million, a 42.8% improvement from the second quarter 2020. * Adjusted EBITDA: Adjusted EBITDA was ($24.4) million, a decrease of $91.9 million from 2019. * Adjusted FFO: Adjusted FFO was ($43.5) million and Adjusted FFO per diluted share was ($0.22). Adjusted FFO was negatively impacted by an income tax valuation allowance recognized in the quarter of $12.4 million, or $0.06 per diluted share. * Preferred Stock Offering: In August and September 2020, the Company issued a total of 4.8 million shares of 8.250% Series A Cumulative Redeemable Preferred Stock for net proceeds of approximately $114.5 million. * Liquidity: The Company's liquidity increased during the quarter by $70.6 million to $434.5 million, comprised of $110.6 million of unrestricted corporate cash, $23.9 million of unrestricted cash at its hotels and $300.0 million of capacity on the Company's revolving credit facility.

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 Frenchman's Reef & Morning Star Marriott Beach Resort for all periods presented due to the closure of the hotel. See "Reconciliation of Comparable Operating Results" attached to this press release for a reconciliation to historical amounts.

For the quarter ended September 30, 2020, the Company reported the following:

Third Quarter

2020 2019 Change

Comparable Operating Results ^(1)

ADR $201.82 $238.50 (15.4) %

Occupancy 18.6 %82.7 %(64.1) %

RevPAR $37.55 $197.14 (81.0) %

Total RevPAR $56.69 $272.05 (79.2) %

Revenues $50.1 million$240.3 (79.2) % million

Hotel Adjusted EBITDA ($17.4) $73.8 million(123.6) % million

Hotel Adjusted EBITDA Margin (34.69) %30.69 %(6,538) basis points

Available Rooms 883,200 883,200 - rooms



Actual Operating Results

Revenues $50.1 million$240.3 (79.2) % million

Net loss/income ($79.6) $11.6 million($91.2) million million

Loss/Earnings per diluted ($0.40) $0.06 ($0.46) share

Adjusted EBITDA ($24.4) $67.5 million($91.9) million million

Adjusted FFO ($43.5) $55.3 million($98.8) million million

Adjusted FFO per diluted ($0.22) $0.27 ($0.49) share



^(1) Comparable operating results exclude Frenchman's Reef & Morning Star Marriott Beach Resort for all periods presented and does not adjust for hotels that have suspended operations.

For the nine months ended September 30, 2020, the Company reported the following:

Year to Date

2020 2019 Change

Comparable Operating Results ^(1)

ADR $209.23 $235.89 (11.3) %

Occupancy 28.7 %79.7 %(51.0) %

RevPAR $60.09 $187.96 (68.0) %

Total RevPAR $91.41 $267.43 (65.8) %

Revenues $240.4 million$700.6 (65.7) % million

Hotel Adjusted EBITDA ($29.9) $209.2 (114.3) % million million

Hotel Adjusted EBITDA Margin (12.44) %29.87 %(4,231) basis points

Available Rooms 2,630,400 2,619,609 10,791 rooms



Actual Operating Results

Revenues $240.4 million$700.6 (65.7) % million

Net loss/income ($187.7) $49.6 ($237.3) million million million

Loss/Earnings per diluted ($0.93) $0.24 ($1.17) share

Adjusted EBITDA ($49.6) $197.8 ($247.4) million million million

Adjusted FFO ($76.1) $162.3 ($238.4) million million million

Adjusted FFO per diluted ($0.38) $0.80 ($1.18) share



^ Comparable operating results exclude Frenchman's Reef & Morning Star(1) Marriott Beach Resort for all periods presented and does not adjust for hotels that have suspended operations.

Net loss for the three and nine months ended September 30, 2020 includes $7.4 million and $7.8 million, respectively, of severance costs recognized in connection with the elimination of positions at the Company's hotels.These severance costs are excluded from Hotel Adjusted EBITDA, Adjusted EBITDA and Adjusted FFO in accordance with the Company's definition of these metrics.

Hotel Operations Update

Due to the decline in travel demand from the impact of COVID-19, the Company temporarily suspended operations at 20 of its 30 previously operating properties (which excludes Frenchman's Reef & Morning Star Marriott Beach Resort, where redevelopment has been paused) throughout March and early April. The Company resumed operations at 12 hotels by the end of the second quarter and another five hotels by the end of the third quarter as governmental orders were modified or lifted and leisure demand began to return. The Company does not expect to reopen the remaining three closed hotels in 2020, all of which are located in New York City. The Company will continue to aggressively manage costs at its hotels 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.

The Company has successfully improved the cash burn rate at its hotels as a result of aggressive cost controls and increased demand. The average burn rate for the Company's hotels during the third quarter 2020 was $8.5 million per month, a 19.8% improvement over the average burn rate of $10.6 million per month in the second quarter 2020.

The following table identifies each of the Company's hotels that has suspended operations and the date of reopening, if applicable:

Date of Date of Property # of Rooms SuspensionReopening

Renaissance Charleston Historic District 166 4/6/2020 5/14/2020Hotel

Orchards Inn Sedona 70 3/31/2020 5/15/2020

Courtyard Denver Downtown 177 3/20/2020 6/1/2020

JW Marriott Denver Cherry Creek 199 3/22/2020 6/1/2020

Havana Cabana Key West 106 3/23/2020 6/1/2020

Barbary Beach House Key West 184 3/23/2020 6/1/2020

The Landing Lake Tahoe Resort & Spa 82 3/23/2020 6/5/2020

The Gwen Chicago 311 3/31/2020 6/10/2020

Vail Marriott Mountain Resort 344 3/20/2020 6/12/2020

Hotel Palomar Phoenix 242 3/31/2020 6/21/2020

Cavallo Point, The Lodge at the Golden 142 3/17/2020 6/24/2020Gate

Hotel Emblem San Francisco 96 3/23/2020 6/26/2020

The Lodge at Sonoma Renaissance Resort & 182 3/21/2020 7/1/2020 Spa

Hilton Burlington Lake Champlain 258 3/31/2020 7/16/2020

Hilton Boston Downtown/Faneuil Hall 403 3/23/2020 7/31/2020

Chicago Marriott Downtown Magnificent Mile1,200 4/10/2020 9/1/2020

Westin Boston Waterfront 793 3/25/2020 9/3/2020

Courtyard New York Manhattan/Fifth Avenue 189 3/27/2020 -

Hilton Garden Inn New York Times Square 282 3/29/2020 - Central

The Lexington Hotel 725 3/29/2020 -



The following tables provide operating information for the Company's portfolio throughout the third quarter:

July 2020August 2020September 2020Third Quarter 2020

Hotels Open and Operating the Entire Period

Number of Hotels23 23 23 23

Occupancy 25.8 %28.1 %31.1 %28.3 %

ADR $206.98 $200.78 $210.92 $206.32

RevPAR $53.43 $56.40 $65.54 $58.38

Total RevPAR $76.36 $84.68 $100.89 $87.16

July 2020August 2020September 2020Third Quarter 2020

Resorts Open and Operating the Entire Period

Number of Hotels11 11 11 11

Occupancy 39.8 %44.1 %45.1 %43.0 %

ADR $265.29 $258.48 $282.70 $268.89

RevPAR $105.49 $114.10 $127.49 $115.57

Total RevPAR $157.89 $176.87 $206.76 $180.22

July 2020August 2020September 2020Third Quarter 2020

Hotels Open and Operating at Any Point During the Period

Number of Hotels25 25 27 27

Occupancy 23.5 %27.4 %25.0 %25.3 %

ADR $206.35 $197.12 $202.53 $201.82

RevPAR $48.55 $54.09 $50.64 $51.06

Total RevPAR $69.50 $80.19 $77.36 $75.82

Capital Expenditures

The Company invested approximately $8.1 million and $39.9 million in capital improvements at its operating hotels during the three and nine months ended September 30, 2020, respectively. Due to the COVID-19 pandemic, the Company has canceled or deferred a significant portion of the planned capital improvements at its operating hotels.The Company currently expects to invest approximately $10.0 million in the fourth quarter for a total of $50.0 million of investment in capital improvements at its operating hotels during 2020.Separately, the Company has paused the rebuild of Frenchman's Reef & Morning Star Marriott Beach Resort. The Company spent approximately $38.3 million on the rebuild of Frenchman's Reef & Morning Star Marriott Beach Resort during the nine months ended September 30, 2020.

Management and Franchise Agreement Amendments

On August 27, 2020, the Company entered into an agreement with Marriott International, Inc. modifying several franchise and management contracts.Key benefits of the agreement include: (i) the conversion of five hotels from brand-managed to franchise with new terminable-at-will management agreements with third-party hotel operators, (ii) a new franchise agreement for the Vail Marriott Mountain Resort to upbrand the resort to a Luxury Collection hotel in 2021, (iii) an option to upbrand the JW Marriott Denver Cherry Creek to a Luxury Collection hotel and (iv) an amendment to the Autograph Collection franchise agreement for The Lexington Hotel to provide a termination right in 2021 subject to a fee. The agreement results in the Company having 29 of its 31 hotels unencumbered by long-term brand management agreements.

Balance Sheet and Liquidity

As of September 30, 2020, the Company's liquidity was $434.5 million, an increase of $70.6 million during the quarter, and is comprised of $110.6 million of unrestricted corporate cash, $23.9 million of unrestricted cash at its hotels and $300.0 million of capacity on its senior unsecured credit facility.As of September 30, 2020, the Company had $1.1 billion of total debt outstanding, which consisted of $604.5 million of property-specific, non-recourse mortgage debt, $400.0 million of unsecured term loans and $100.0 million outstanding on its $400.0 million senior unsecured credit facility.The Company has no material debt maturities until 2022.

In August and September 2020, the Company completed a public offering of a total of 4.8 million shares of 8.250% Series A Cumulative Redeemable Preferred Stock with a $25.00 per share liquidation preference for net proceeds of approximately $114.5 million.

Dividends

The Company declared an inaugural dividend of $0.1776 per share on its 8.250% Series A Cumulative Redeemable Preferred Stock to shareholders of record as of September 20, 2020.This dividend was paid on September 30, 2020 and calculated on a pro rata basis from, and including, the original issue date to, and including, September 30, 2020. In order to preserve liquidity, the Company has suspended its quarterly dividend on common stock commencing with the dividend that would have been paid in April 2020.

Guidance

Given the high level of uncertainty surrounding the COVID-19 pandemic and its effect on hotel demand, the Company previously withdrew full year 2020 guidance originally issued on February 20, 2020 and is not providing updated guidance at this time.

Earnings Call

The Company will host a conference call to discuss its second quarter results on Friday, November 6, 2020, 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 2536596. 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 owns 31 premium quality hotels with over 10,000 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, including statements related to the expected duration of closure of Frenchman's Reef & Morning Star Marriott Beach Resort. 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 30, 2020December 31, 2019

ASSETS (unaudited)

Property and equipment, net $ 3,013,989 $3,026,769

Right-of-use assets 96,956 98,145

Restricted cash 31,478 57,268

Due from hotel managers 67,951 91,207

Prepaid and other assets ^(1) 33,194 29,853

Cash and cash equivalents 110,555 122,524

Total assets $ 3,354,123 $3,425,766

LIABILITIES AND EQUITY

Liabilities:

Mortgage and other debt, net of unamortized debt issuance costs $ 601,715 $616,329

Unsecured term loans, net of unamortized debt issuance costs 398,443 398,770

Senior unsecured credit facility 99,985 75,000

Total debt 1,100,143 1,090,099



Deferred income related to key money, net 11,045 11,342

Unfavorable contract liabilities, net 64,564 67,422

Deferred rent 55,270 52,012

Lease liabilities 104,275 103,625

Due to hotel managers 94,473 72,445

Distributions declared and unpaid 138 25,815

Accounts payable and accrued expenses ^(2) 82,026 81,944

Total liabilities 1,511,934 1,504,704

Equity:

Preferred stock, $0.01 par value; 10,000,000 shares authorized;

8.250% Series A Cumulative Redeemable Preferred Stock (liquidation preference $25.00 per share), 4,760,000 and no shares issues and 48 - outstanding at September 30, 2020 and December 31, 2019, respectively

Common stock, $0.01 par value; 400,000,000 shares authorized; 199,518,880 and 200,207,795 shares issued and outstanding at September 30, 2020 and December 1,995 2,002 31, 2019, respectively

Additional paid-in capital 2,198,376 2,089,349

Accumulated deficit (366,635) (178,861)

Total stockholders' equity 1,833,784 1,912,490

Noncontrolling interests 8,405 8,572

Total equity 1,842,189 1,921,062

Total liabilities and equity $ 3,354,123 $3,425,766

Includes $10.7 million of insurance receivables as of December 31, 2019,^ $13.6 million and $9.8 million of prepaid expenses and $19.6 million and(1) $9.4 million of other assets as of September 30, 2020 and December 31, 2019, respectively.

Includes $28.7 million of deferred tax liabilities, $18.4 million and $18.9^ million of accrued property taxes, $8.9 million and $13.1 million of(2) accrued capital expenditures and $26.0 million and $21.2 million of other accrued liabilities as of September 30, 2020 and December 31, 2019, respectively.

DIAMONDROCK HOSPITALITY COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share amounts)

(unaudited)



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

2020 2019 2020 2019

Revenues:

Rooms $33,166 $ 174,113 $ 158,066 $492,395

Food and beverage 9,586 50,624 56,529 161,803

Other 7,315 15,542 25,846 46,374

Total revenues 50,067 240,279 240,441 700,572

Operating Expenses:

Rooms 11,792 42,840 54,588 124,581

Food and beverage 10,043 34,262 45,845 103,868

Management fees (755) 6,088 2,644 18,745

Franchise fees 1,813 6,894 8,402 19,961

Other hotel expenses 53,196 85,157 171,759 241,955

Depreciation and amortization 28,514 29,474 87,397 87,805

Corporate expenses 7,267 6,318 19,650 20,785

Business interruption insurance income - - - (8,822)

Total operating expenses, net 111,870 211,033 390,285 608,878



Interest and other (income) expense, net (191) (102) 58 (510)

Interest expense 10,818 14,184 43,665 38,264

Loss on early extinguishment of debt - 2,373 - 2,373

Total other expenses, net 10,627 16,455 43,723 40,127

(Loss) income before income taxes (72,430) 12,791 (193,567) 51,567

Income tax (expense) benefit (7,205) (1,217) 5,853 (1,939)

Net (loss) income (79,635) 11,574 (187,714) 49,628

Less: Net loss (income) attributable to noncontrolling interests 43 (45) 781 (194)

Net (loss) income attributable to the Company (79,592) 11,529 (186,933) 49,434

Distributions to preferred stockholders (845) - (845) -

Net (loss) income attributable to common stockholders $(80,437) $ 11,529 $ (187,778)$49,434

(Loss) earnings per share:

Net (loss) income per share available to common stockholders - basic $(0.40) $ 0.06 $ (0.93) $0.24

Net (loss) income per share available to common stockholders - diluted$(0.40) $ 0.06 $ (0.93) $0.24



Weighted-average number of common shares outstanding:

Basic 200,978,327201,448,348200,994,434 202,218,646

Diluted 200,978,327201,992,289200,994,434 202,682,588

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 Nine Months Ended September 30, September 30,

2020 2019 2020 2019

Net (loss) income $(79,635) $11,574 $(187,714)$49,628

Interest expense 10,818 14,184 43,665 38,264

Income tax expense (benefit) 7,205 1,217 (5,853) 1,939

Real estate related depreciation and amortization 28,514 29,474 87,397 87,805

EBITDA/EBITDAre (33,098) 56,449 (62,505) 177,636

Non-cash lease expense and other amortization 1,715 1,750 5,172 5,249

Professional fees and pre-opening costs related to593 6,378 418 11,445 Frenchman's Reef ^(1)

Hotel manager transition items ^(2) (1,021) 582 (460) 1,050

Loss on early extinguishment of debt - 2,373 - 2,373

Severance costs ^(3) 7,367 - 7,760 -

Adjusted EBITDA $(24,444) $67,532 $(49,615) $197,753

Represents pre-opening costs related to the re-opening of Frenchman's Reef^ & Morning Star Marriott Beach Resort, as well as legal and professional(1) fees and other costs incurred at Frenchman's Reef & Morning Star Marriott Beach Resort as a result of Hurricane Irma that are not covered by insurance.

Three months ended September 30, 2020 consists of manager transition costs of $0.4 million related to The Lodge at Sonoma Renaissance Resort & Spa, Salt Lake City Marriott Downtown at City Creek, and Renaissance Charleston Historic District Hotel, offset by $1.4 million of accelerated amortization of the unfavorable management agreement liability related to the manager transition at the Renaissance Charleston Historic District Hotel. Nine^ months ended September 30, 2020 consists of manager transition costs of(2) $1.5 million related to the L'Auberge de Sedona, Orchards Inn Sedona, the Westin Boston Waterfront, The Lodge at Sonoma Renaissance Resort & Spa, Salt Lake City Marriott Downtown at City Creek, and Renaissance Charleston Historic District Hotel, offset by a downward adjustment of $0.6 million to the termination fees for the Sheraton Suites Key West franchise agreement and $1.4 million of accelerated amortization of the unfavorable management agreement liability related to the manager transition at the Renaissance Charleston Historic District Hotel.

Three months ended September 30, 2019 consist of (a) less than $0.1 million of pre-opening costs related to the reopening of the Hotel Emblem and manager transition costs related to the Westin Washington, D.C. City Center and (b) $0.6 million of manager termination fees for L'Auberge de Sedona and Orchards Inn Sedona. Nine months ended September 30, 2019 consists of (a) $0.4 million of pre-opening costs related to the reopening of the Hotel Emblem, (b) $0.1 million of manager transition costs related to the Westin Washington, D.C. City Center and (c) $0.6 million of manager termination fees for L'Auberge de Sedona and Orchards Inn Sedona.

Three and nine months ended September 30, 2020 consists of severance costs^ incurred with the elimination of positions at our hotels, which are(3) 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 Nine Months Ended September September 30, 30,

2020 2019 2020 2019

Net (loss) income $(79,635) $11,574 $(187,714) $ 49,628

Interest expense 10,818 14,184 43,665 38,264

Income tax expense (benefit) 7,205 1,217 (5,853) 1,939

Real estate related depreciation and amortization 28,514 29,474 87,397 87,805

EBITDA (33,098) 56,449 (62,505) 177,636

Corporate expenses 7,267 6,318 19,650 20,785

Interest and other (income) expense, net (191) (102) 58 (510)

Loss on early extinguishment of debt - 2,373 - 2,373

Professional fees and pre-opening costs related to Frenchman's Reef ^(1)593 6,378 418 11,445

Hotel EBITDA (25,429) 71,416 (42,379) 211,729

Non-cash lease expense and other amortization 1,715 1,750 5,172 5,249

Severance costs ^(3) 7,367 - 7,760 -

Hotel manager transition items ^(2) (1,021) 582 (460) 1,050

Hotel Adjusted EBITDA $(17,368) $73,748 $(29,907) $ 218,028

Represents pre-opening costs related to the re-opening of Frenchman's Reef^ & Morning Star Marriott Beach Resort, as well as legal and professional(1) fees and other costs incurred at Frenchman's Reef & Morning Star Marriott Beach Resort as a result of Hurricane Irma that are not covered by insurance.

Three months ended September 30, 2020 consists of manager transition costs of $0.4 million related to The Lodge at Sonoma Renaissance Resort & Spa, Salt Lake City Marriott Downtown at City Creek, and Renaissance Charleston Historic District Hotel, offset by $1.4 million of accelerated amortization of the unfavorable management agreement liability related to the manager transition at the Renaissance Charleston Historic District Hotel. Nine^ months ended September 30, 2020 consists of manager transition costs of(2) $1.5 million related to the L'Auberge de Sedona, Orchards Inn Sedona, the Westin Boston Waterfront, The Lodge at Sonoma Renaissance Resort & Spa, Salt Lake City Marriott Downtown at City Creek, and Renaissance Charleston Historic District Hotel, offset by a downward adjustment of $0.6 million to the termination fees for the Sheraton Suites Key West franchise agreement and $1.4 million of accelerated amortization of the unfavorable management agreement liability related to the manager transition at the Renaissance Charleston Historic District Hotel.

Three months ended September 30, 2019 consist of (a) less than $0.1 million of pre-opening costs related to the reopening of the Hotel Emblem and manager transition costs related to the Westin Washington, D.C. City Center and (b) $0.6 million of manager termination fees for L'Auberge de Sedona and Orchards Inn Sedona. Nine months ended September 30, 2019 consists of (a) $0.4 million of pre-opening costs related to the reopening of the Hotel Emblem, (b) $0.1 million of manager transition costs related to the Westin Washington, D.C. City Center and (c) $0.6 million of manager termination fees for L'Auberge de Sedona and Orchards Inn Sedona.

Three and nine months ended September 30, 2020 consists of severance costs^ incurred with the elimination of positions at our hotels, which are(3) 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 Nine Months September 30, Ended September 30,

2020 2019 2020 2019

Net (loss) income $(79,635)$11,574$(187,714)$49,628

Real estate related depreciation and amortization28,514 29,474 87,397 87,805

FFO (51,121) 41,048 (100,317) 137,433

Non-cash lease expense and other amortization 1,715 1,750 5,172 5,249

Professional fees and pre-opening costs related 593 6,378 418 11,445 to Frenchman's Reef ^ (1)

Hotel manager transition items ^(2) (1,021) 582 (460) 1,050

Loss on early extinguishment of debt - 2,373 - 2,373

Severance costs ^(3) 7,367 - 7,760 -

Fair value adjustments to interest rate swaps (983) 3,143 11,329 4,790

Adjusted FFO $(43,450)$55,274$(76,098) $162,340

Adjusted FFO per diluted share $(0.22) $0.27 $(0.38) $0.80

Represents pre-opening costs related to the re-opening of Frenchman's Reef^ & Morning Star Marriott Beach Resort, as well as legal and professional(1) fees and other costs incurred at Frenchman's Reef & Morning Star Marriott Beach Resort as a result of Hurricane Irma that are not covered by insurance.

Three months ended September 30, 2020 consists of manager transition costs of $0.4 million related to The Lodge at Sonoma Renaissance Resort & Spa, Salt Lake City Marriott Downtown at City Creek, and Renaissance Charleston Historic District Hotel, offset by $1.4 million of accelerated amortization of the unfavorable management agreement liability related to the manager transition at the Renaissance Charleston Historic District Hotel. Nine^ months ended September 30, 2020 consists of manager transition costs of(2) $1.5 million related to the L'Auberge de Sedona, Orchards Inn Sedona, the Westin Boston Waterfront, The Lodge at Sonoma Renaissance Resort & Spa, Salt Lake City Marriott Downtown at City Creek, and Renaissance Charleston Historic District Hotel, offset by a downward adjustment of $0.6 million to the termination fees for the Sheraton Suites Key West franchise agreement and $1.4 million of accelerated amortization of the unfavorable management agreement liability related to the manager transition at the Renaissance Charleston Historic District Hotel.

Three months ended September 30, 2019 consist of (a) less than $0.1 million of pre-opening costs related to the reopening of the Hotel Emblem and manager transition costs related to the Westin Washington, D.C. City Center and (b) $0.6 million of manager termination fees for L'Auberge de Sedona and Orchards Inn Sedona. Nine months ended September 30, 2019 consists of (a) $0.4 million of pre-opening costs related to the reopening of the Hotel Emblem, (b) $0.1 million of manager transition costs related to the Westin Washington, D.C. City Center and (c) $0.6 million of manager termination fees for L'Auberge de Sedona and Orchards Inn Sedona.

Three and nine months ended September 30, 2020 consists of severance costs^ incurred with the elimination of positions at our hotels, which are(3) 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 Frenchman's Reef & Morning Star Marriott Beach Resort due to the closure of the hotel (in thousands):

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

2020 2019 2020 2019

Revenues $50,067 $240,279 $240,441 $700,572

Hotel revenues from Frenchman's Reef & Morning Star - (1) - - Marriott Beach Resort

Comparable Revenues $50,067 $240,278 $240,441 $700,572



Hotel Adjusted EBITDA $(17,368) $73,748 $(29,907) $218,028

Hotel Adjusted EBITDA from Frenchman's Reef & Morning - 2 - (8,798) Star Marriott Beach Resort

Comparable Hotel Adjusted EBITDA $(17,368) $73,750 $(29,907) $209,230



Hotel Adjusted EBITDA Margin (34.69) %30.69 %(12.44) %31.12 %

Comparable Hotel Adjusted EBITDA Margin (34.69) %30.69 %(12.44) %29.87 %

Selected Quarterly Comparable Operating Information

The following tables are presented to provide investors with selected quarterly comparable operating information. The operating information excludes Frenchman's Reef & Morning Star Marriott Beach Resort for all periods.

Quarter 1, Quarter 2, Quarter 3, 2020 2020 2020 ADR $216.42 $175.74 $201.82 Occupancy 59.1 %8.5 %18.6 % RevPAR $127.98 $14.99 $37.55 Revenues (in thousands) $169,995 $20,379 $50,067 Hotel Adjusted EBITDA (in $17,819 $(30,363) $(17,368) thousands) Hotel Adjusted EBITDA Margin 10.48 %(148.99) %(34.69) % Available Rooms 873,600 873,600 883,200

Quarter 1, Quarter 2, Quarter 3, Quarter 4, Full Year 2019 2019 2019 2019 2019

ADR $216.38 $250.23 $238.50 $247.02 $238.63

Occupancy 73.2 %83.1 %82.7 %77.4 %79.1 %

RevPAR $158.30 $208.02 $197.14 $191.08 $188.75

Revenues (in $202,375 $257,918 $240,279 $237,519 $938,091 thousands)

Hotel Adjusted EBITDA (in $47,127 $88,353 $73,750 $69,415 $278,645 thousands)

% of full Year 16.91 %31.71 %26.47 %24.91 %100.0 %

Hotel Adjusted 23.29 %34.26 %30.69 %29.23 %29.70 %EBITDA Margin

Available Rooms 863,264 873,145 883,200 883,200 3,502,809

Market Capitalization as of September 30, 2020

(in thousands)

Enterprise Value



Common equity capitalization (at September 30, 2020 closing 1,021,861 price of $5.07/share)

Consolidated debt (face amount) 1,104,445

Cash and cash equivalents (110,555)

Total enterprise value $2,015,751

Share Reconciliation



Common shares outstanding 199,519

Unvested restricted stock held by management and employees 573

Share grants under deferred compensation plan 1,458

Combined shares outstanding 201,550



Debt Summary as of September 30, 2020

(dollars in thousands)



Interest Rate as of Outstanding Loan Term Principal Maturity September 30, 2020

Salt Lake City Marriott Downtown at City Creek LIBOR + 3.25 ^(1) Variable47,700 January 2022 ^(2)

Westin Washington D.C. City Center 3.99% Fixed 58,860 January 2023

The Lodge at Sonoma Renaissance Resort & Spa 3.96% Fixed 26,502 April 2023

Westin San Diego Downtown 3.94% Fixed 60,668 April 2023

Courtyard New York Manhattan / Midtown East 4.40% Fixed 79,940 August 2024

Worthington Renaissance Fort Worth Hotel 3.66% Fixed 79,647 May 2025

JW Marriott Denver Cherry Creek 4.33% Fixed 60,361 July 2025

Westin Boston Waterfront 4.36% Fixed 187,839 November 2025

New Market Tax Credit loan ^(3) 5.17% Fixed 2,943 December 2020

Unamortized debt issuance costs (2,745)

Total mortgage and other debt, net of unamortized debt 601,715 issuance costs



Unsecured term loan LIBOR + 2.35% ^(4) Variable350,000 July 2024

Unsecured term loan LIBOR + 2.35% ^(5) Fixed 50,000 October 2023

Unamortized debt issuance costs (1,557)

Unsecured term loans, net of unamortized debt issuance costs 398,443



Senior unsecured credit facility LIBOR + 2.40% ^(6) Variable99,985 July 2023 ^(7)



Total debt, net of unamortized debt issuance costs $1,100,143

Weighted-average interest rate of fixed rate debt 4.23 %

Total weighted-average interest rate 3.84 %



^ 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.

^ Assumed in connection with the acquisition of the Hotel Palomar Phoenix in(3) March 2018.

^ The Company entered into an interest rate swap agreement in July 2019 to(4) fix LIBOR at 1.70% for $175 million of the term loan through July 2024. Effective June 9, 2020, LIBOR is subject to a floor of 0.25%.

^ The Company entered into an interest rate swap agreement in January 2019 to(5) fix LIBOR at 2.41% through October 2023.

^ Effective June 9, 2020, LIBOR is subject to a floor of 0.25%.(6)

^ May be extended for an additional year upon the payment of applicable fees(7) and the satisfaction of certain customary conditions.

Operating Statistics - July



ADR Occupancy RevPAR Number of RoomsJuly 2020July 2019B/(W) July 2020July 2019B/(W) 2019July 2020July 2019B/(W) 2019 2019



Atlanta Marriott Alpharetta 318 $93.92 $162.46(42.2) %15.6 % 73.9 % (58.3) % $14.63 $120.04(87.8) %

Barbary Beach House Key West 184 $222.62$220.451.0 %36.0 % 87.1 % (51.1) % $80.13 $192.08(58.3) %

Bethesda Marriott Suites 272 $110.20$152.91(27.9) %15.6 % 73.1 % (57.5) % $17.24 $111.78(84.6) %

Cavallo Point, The Lodge at the Golden Gate 142 $444.98$486.46(8.5) %16.7 % 63.1 % (46.4) % $74.30 $307.10(75.8) %

Courtyard Denver Downtown 177 $108.13$208.67(48.2) %24.7 % 89.3 % (64.6) % $26.72 $186.38(85.7) %

Courtyard New York Manhattan/Midtown East 321 $144.64$244.62(40.9) %56.1 % 97.2 % (41.1) % $81.12 $237.84(65.9) %

Havana Cabana Key West 106 $186.78$191.71(2.6) %60.6 % 93.0 % (32.4) % $113.11$178.24(36.5) %

Hotel Emblem San Francisco 96 $136.90$205.59(33.4) %11.3 % 90.8 % (79.5) % $15.46 $186.66(91.7) %

Hotel Palomar Phoenix 242 $119.36$131.36(9.1) %21.0 % 67.0 % (46.0) % $25.06 $88.08 (71.5) %

JW Marriott Denver Cherry Creek 199 $200.79$256.67(21.8) %31.2 % 84.6 % (53.4) % $62.66 $217.18(71.1) %

Kimpton Shorebreak Resort 157 $284.70$335.66(15.2) %48.5 % 85.5 % (37.0) % $138.17$286.83(51.8) %

L'Auberge de Sedona 88 $552.85$484.6314.1 %68.3 % 68.8 % (0.5) % $377.35$333.4513.2 %

Orchards Inn Sedona 70 $165.55$186.63(11.3) %61.8 % 75.3 % (13.5) % $102.38$140.53(27.1) %

Renaissance Charleston Historic District Hotel166 $163.95$227.40(27.9) %37.1 % 85.5 % (48.4) % $60.79 $194.39(68.7) %

Salt Lake City Marriott Downtown at City Creek510 $119.42$176.13(32.2) %10.2 % 77.8 % (67.6) % $12.18 $137.03(91.1) %

The Gwen Hotel 311 $200.27$270.72(26.0) %22.9 % 90.0 % (67.1) % $45.84 $243.63(81.2) %

The Landing Lake Tahoe Resort & Spa 82 $519.03$426.8621.6 %80.3 % 86.3 % (6.0) % $416.53$368.4213.1 %

The Lodge at Sonoma Renaissance Resort & Spa 182 $248.77$343.50(27.6) %45.7 % 81.3 % (35.6) % $113.71$279.33(59.3) %

Vail Marriott Mountain Resort 344 $216.06$220.87(2.2) %34.9 % 76.3 % (41.4) % $75.39 $168.57(55.3) %

Westin Fort Lauderdale Beach Resort 433 $141.08$146.19(3.5) %26.0 % 80.2 % (54.2) % $36.74 $117.31(68.7) %

Westin San Diego Downtown 436 $145.28$205.24(29.2) %17.2 % 89.5 % (72.3) % $24.94 $183.74(86.4) %

Westin Washington D.C. City Center 410 $120.95$178.39(32.2) %5.7 % 91.1 % (85.4) % $6.94 $162.54(95.7) %

Worthington Renaissance Fort Worth Hotel 504 $146.84$175.26(16.2) %9.2 % 64.0 % (54.8) % $13.45 $112.15(88.0) %

Total Open for Entire Period - 23 Hotels 5,750 $206.98$217.88(5.0) %25.8 % 80.9 % (55.1) % $53.43 $176.25(69.7) %



Total Partially Open During Period - 2 Hotels 661 $167.77$297.78(43.7) %3.6 % 92.6 % (89.0) % $6.10 $275.66(97.8) %



Total Closed for Entire Period - 5 Hotels 3,189 $- $228.51(100.0)%- % 86.0 % (86.0) % $- $196.41(100.0)%



Resorts - 12 Hotels 2,212 $262.78$255.452.9 %36.1 % 81.7 % (45.6) % $94.88 $208.75(54.5) %



Portfolio Total ^(1) 9,600 $206.29$227.63(9.4) %15.7 % 83.4 % (67.7) % $32.41 $189.79(82.9) %

^ Amounts exclude the operating results of Frenchman's Reef & Morning Star(1) Marriott Beach Resort for all periods presented.

Operating Statistics - August



ADR Occupancy RevPAR Number of RoomsAugust August B/(W) August August B/(W) 2020 2019 August 2020August 2019B/(W) 20192020 2019 2019 2019





Atlanta Marriott Alpharetta 318 $94.35 $161.59(41.6) %12.3 % 71.7 % (59.4) % $11.63 $115.81(90.0) %

Barbary Beach House Key West 184 $181.40$199.25(9.0) %35.0 % 70.4 % (35.4) % $63.41 $140.18(54.8) %

Bethesda Marriott Suites 272 $102.62$149.39(31.3) %20.4 % 66.1 % (45.7) % $20.97 $98.72 (78.8) %

Cavallo Point, The Lodge at the Golden Gate 142 $489.25$457.466.9 %26.5 % 70.7 % (44.2) % $129.48$323.51(60.0) %

Courtyard Denver Downtown 177 $103.06$219.37(53.0) %28.7 % 84.3 % (55.6) % $29.60 $184.87(84.0) %

Courtyard New York Manhattan/Midtown East 321 $122.13$241.09(49.3) %27.9 % 98.8 % (70.9) % $34.10 $238.13(85.7) %

Havana Cabana Key West 106 $142.09$176.93(19.7) %71.9 % 86.7 % (14.8) % $102.22$153.35(33.3) %

Hilton Boston Downtown/Faneuil Hall 403 $136.22$306.70(55.6) %17.5 % 91.7 % (74.2) % $23.84 $281.12(91.5) %

Hilton Burlington Lake Champlain 258 $175.06$253.47(30.9) %28.5 % 92.7 % (64.2) % $49.97 $235.05(78.7) %

Hotel Emblem San Francisco 96 $142.37$253.93(43.9) %14.9 % 93.9 % (79.0) % $21.14 $238.49(91.1) %

Hotel Palomar Phoenix 242 $113.72$124.88(8.9) %26.2 % 75.7 % (49.5) % $29.80 $94.52 (68.5) %

JW Marriott Denver Cherry Creek 199 $202.38$262.08(22.8) %39.4 % 87.1 % (47.7) % $79.82 $228.26(65.0) %

Kimpton Shorebreak Resort 157 $289.23$313.84(7.8) %56.4 % 80.6 % (24.2) % $163.01$252.84(35.5) %

L'Auberge de Sedona 88 $523.87$478.339.5 %80.2 % 71.8 % 8.4 % $419.98$343.6722.2 %

Orchards Inn Sedona 70 $174.43$188.47(7.4) %56.1 % 69.5 % (13.4) % $97.82 $130.97(25.3) %

Renaissance Charleston Historic District Hotel166 $172.70$235.20(26.6) %38.6 % 86.2 % (47.6) % $66.72 $202.66(67.1) %

Salt Lake City Marriott Downtown at City Creek510 $125.39$168.07(25.4) %11.5 % 76.1 % (64.6) % $14.42 $127.98(88.7) %

The Gwen Hotel 311 $191.55$273.02(29.8) %15.2 % 93.1 % (77.9) % $29.21 $254.10(88.5) %

The Landing Lake Tahoe Resort & Spa 82 $506.70$393.5528.8 %85.1 % 86.6 % (1.5) % $430.95$340.9226.4 %

The Lodge at Sonoma Renaissance Resort & Spa 182 $246.17$349.13(29.5) %42.8 % 80.0 % (37.2) % $105.24$279.45(62.3) %

Vail Marriott Mountain Resort 344 $217.30$225.07(3.5) %38.7 % 70.3 % (31.6) % $84.16 $158.16(46.8) %

Westin Fort Lauderdale Beach Resort 433 $128.52$134.69(4.6) %32.6 % 68.5 % (35.9) % $41.91 $92.26 (54.6) %

Westin San Diego Downtown 436 $140.96$181.40(22.3) %24.8 % 85.6 % (60.8) % $34.91 $155.20(77.5) %

Westin Washington D.C. City Center 410 $122.37$145.02(15.6) %10.9 % 92.0 % (81.1) % $13.35 $133.35(90.0) %

Worthington Renaissance Fort Worth Hotel 504 $131.77$167.32(21.2) %20.3 % 68.6 % (48.3) % $26.76 $114.76(76.7) %

Total Open for Entire Period - 25 Hotels 6,411 $197.12$220.19(10.5) %27.4 % 80.5 % (53.1) % $54.09 $177.25(69.5) %



Total Closed for Entire Period - 5 Hotels 3,189 $- $230.10(100.0)%- % 87.7 % (87.7) % $- $201.78(100.0)%



Resorts - 12 Hotels 2,212 $251.92$256.01(1.6) %42.3 % 76.7 % (34.4) % $106.62$196.45(45.7) %



Portfolio Total ^(1) 9,600 $197.17$223.67(11.8) %18.3 % 82.9 % (64.6) % $36.13 $185.40(80.5) %

^ Amounts exclude the operating results of Frenchman's Reef & Morning Star(1) Marriott Beach Resort for all periods presented.

Operating Statistics - September



ADR Occupancy RevPAR Number of RoomsSeptember September B/(W) SeptemberSeptemberB/(W) 2019September September B/(W) 2020 2019 2019 2020 2019 2020 2019 2019





Atlanta Marriott Alpharetta 318 $103.77 $167.43 (38.0) %11.9 %73.2 %(61.3) % $12.38 $122.49 (89.9) %

Barbary Beach House Key West 184 $176.62 $170.36 3.7 %29.7 %25.6 %4.1 % $52.51 $43.55 20.6 %

Bethesda Marriott Suites 272 $101.38 $201.33 (49.6) %21.1 %72.0 %(50.9) % $21.38 $144.95 (85.3) %

Cavallo Point, The Lodge at the Golden Gate 142 $560.76 $465.89 20.4 %35.2 %70.6 %(35.4) % $197.58 $328.86 (39.9) %

Chicago Marriott Downtown Magnificent Mile 1,200 $159.09 $272.68 (41.7) %5.6 %85.5 %(79.9) % $8.88 $233.19 (96.2) %

Courtyard Denver Downtown 177 $105.75 $228.07 (53.6) %34.0 %84.2 %(50.2) % $35.99 $191.99 (81.3) %

Courtyard New York Manhattan/Midtown East 321 $121.87 $315.86 (61.4) %32.2 %96.3 %(64.1) % $39.19 $304.15 (87.1) %

Havana Cabana Key West 106 $135.51 $135.65 (0.1) %74.7 %77.8 %(3.1) % $101.30 $105.49 (4.0) %

Hilton Boston Downtown/Faneuil Hall 403 $142.47 $385.01 (63.0) %19.0 %94.2 %(75.2) % $27.01 $362.59 (92.6) %

Hilton Burlington Lake Champlain 258 $179.05 $239.09 (25.1) %30.6 %84.1 %(53.5) % $54.71 $201.00 (72.8) %

Hotel Emblem San Francisco 96 $143.64 $282.77 (49.2) %16.8 %90.2 %(73.4) % $24.19 $255.18 (90.5) %

Hotel Palomar Phoenix 242 $120.48 $173.31 (30.5) %39.6 %77.5 %(37.9) % $47.74 $134.23 (64.4) %

JW Marriott Denver Cherry Creek 199 $208.25 $267.46 (22.1) %47.9 %86.1 %(38.2) % $99.80 $230.32 (56.7) %

Kimpton Shorebreak Resort 157 $297.92 $266.43 11.8 %55.6 %79.3 %(23.7) % $165.79 $211.22 (21.5) %

L'Auberge de Sedona 88 $737.92 $636.01 16.0 %81.4 %74.5 %6.9 % $600.40 $473.63 26.8 %

Orchards Inn Sedona 70 $254.04 $244.47 3.9 %60.5 %78.4 %(17.9) % $153.63 $191.62 (19.8) %

Renaissance Charleston Historic District Hotel166 $181.95 $262.76 (30.8) %58.3 %61.4 %(3.1) % $106.07 $161.30 (34.2) %

Salt Lake City Marriott Downtown at City Creek510 $121.61 $194.57 (37.5) %17.2 %74.4 %(57.2) % $20.86 $144.76 (85.6) %

The Gwen Hotel 311 $195.31 $298.63 (34.6) %24.3 %90.9 %(66.6) % $47.39 $271.59 (82.6) %

The Landing Lake Tahoe Resort & Spa 82 $448.50 $307.08 46.1 %69.9 %86.3 %(16.4) % $313.40 $265.01 18.3 %

The Lodge at Sonoma Renaissance Resort & Spa 182 $249.97 $355.67 (29.7) %42.3 %90.2 %(47.9) % $105.80 $320.89 (67.0) %

Vail Marriott Mountain Resort 344 $223.43 $187.25 19.3 %39.2 %64.5 %(25.3) % $87.68 $120.70 (27.4) %

Westin Fort Lauderdale Beach Resort 433 $141.06 $152.48 (7.5) %30.0 %59.7 %(29.7) % $42.28 $91.02 (53.5) %

Westin San Diego Downtown 436 $147.81 $191.24 (22.7) %27.2 %82.8 %(55.6) % $40.19 $158.33 (74.6) %

Westin Washington D.C. City Center 410 $123.46 $214.99 (42.6) %10.3 %88.9 %(78.6) % $12.77 $191.08 (93.3) %

Worthington Renaissance Fort Worth Hotel 504 $148.80 $189.59 (21.5) %22.9 %76.1 %(53.2) % $34.07 $144.20 (76.4) %

Total Open for Entire Period - 26 Hotels 7,611 $205.34 $251.10 (18.2) %26.4 %79.1 %(52.7) % $54.20 $198.52 (72.7) %



Total Partially Open During Period - 1 Hotel 793 $141.34 $291.30 (51.5) %11.6 %86.7 %(75.1) % $16.46 $252.45 (93.5) %



Total Closed for Entire Period - 3 Hotels 1,196 $- $326.45 (100.0)%- %94.9 %(94.9) % $- $309.96 (100.0)%



Resorts - 12 Hotels 2,212 $274.19 $261.08 5.0 %43.4 %68.2 %(24.8) % $119.00 $178.05 (33.2) %



Portfolio Total^ (1) 9,600 $202.53 $265.54 (23.7) %21.9 %81.7 %(59.8) % $44.33 $216.86 (79.6) %

^ Amounts exclude the operating results of Frenchman's Reef & Morning Star(1) Marriott Beach Resort for all periods presented.

Operating Statistics - Third Quarter



ADR Occupancy RevPAR Number of Rooms3Q 2020 3Q 2019 B/(W) 3Q 3Q B/(W) 20193Q 2020 3Q 2019 B/(W) 2019 2020 2019 2019





Atlanta Marriott Alpharetta 318 $96.94 $163.80(40.8) %13.3%72.9%(59.6) % $12.89 $119.41(89.2) %

Barbary Beach House Key West 184 $194.90$205.47(5.1) %33.6%61.4%(27.8) % $65.49 $126.16(48.1) %

Bethesda Marriott Suites 272 $104.27$167.95(37.9) %19.0%70.4%(51.4) % $19.85 $118.20(83.2) %

Cavallo Point, The Lodge at the Golden Gate 142 $511.24$469.368.9 %26.0%68.1%(42.1) % $133.09$319.72(58.4) %

Courtyard Denver Downtown 177 $105.53$218.40(51.7) %29.1%85.9%(56.8) % $30.71 $187.70(83.6) %

Courtyard New York Manhattan/Midtown East 321 $133.02$266.37(50.1) %38.8%97.4%(58.6) % $51.60 $259.56(80.1) %

Havana Cabana Key West 106 $152.98$170.13(10.1) %69.0%85.9%(16.9) % $105.59$146.13(27.7) %

Hotel Emblem San Francisco 96 $141.40$247.06(42.8) %14.3%91.7%(77.4) % $20.22 $226.47(91.1) %

Hotel Palomar Phoenix 242 $118.13$143.55(17.7) %28.8%73.4%(44.6) % $34.05 $105.30(67.7) %

JW Marriott Denver Cherry Creek 199 $204.28$262.04(22.0) %39.4%85.9%(46.5) % $80.55 $225.20(64.2) %

Kimpton Shorebreak Resort 157 $290.80$306.54(5.1) %53.5%81.8%(28.3) % $155.54$250.72(38.0) %

L'Auberge de Sedona 88 $606.77$533.7913.7 %76.5%71.7%4.8 % $464.45$382.6121.4 %

Orchards Inn Sedona 70 $197.72$207.09(4.5) %59.5%74.3%(14.8) % $117.56$153.97(23.6) %

Renaissance Charleston Historic District Hotel166 $174.20$239.40(27.2) %44.5%77.9%(33.4) % $77.55 $186.38(58.4) %

Salt Lake City Marriott Downtown at City Creek510 $122.16$179.29(31.9) %12.9%76.1%(63.2) % $15.76 $136.50(88.5) %

The Gwen Hotel 311 $196.22$280.57(30.1) %20.8%91.3%(70.5) % $40.74 $256.27(84.1) %

The Landing Lake Tahoe Resort & Spa 82 $494.05$376.6031.2 %78.5%86.4%(7.9) % $387.76$325.4319.2 %

The Lodge at Sonoma Renaissance Resort & Spa 182 $248.29$349.59(29.0) %43.6%83.8%(40.2) % $108.28$292.92(63.0) %

Vail Marriott Mountain Resort 344 $219.00$212.253.2 %37.6%70.4%(32.8) % $82.35 $149.45(44.9) %

Westin Fort Lauderdale Beach Resort 433 $136.40$144.14(5.4) %29.5%69.6%(40.1) % $40.29 $100.29(59.8) %

Westin San Diego Downtown 436 $144.69$192.85(25.0) %23.0%86.0%(63.0) % $33.27 $165.84(79.9) %

Westin Washington D.C. City Center 410 $122.48$178.69(31.5) %9.0 %90.7%(81.7) % $11.00 $162.01(93.2) %

Worthington Renaissance Fort Worth Hotel 504 $141.75$177.73(20.2) %17.4%69.5%(52.1) % $24.66 $123.48(80.0) %

Total Open for Entire Period - 23 Hotels 5,750 $206.32$221.13(6.7) %28.3%78.9%(50.6) % $58.38 $174.38(66.5) %



Total Partially Open During Period - 4 Hotels 2,654 $155.86$263.43(40.8) %6.0 %85.4%(79.4) % $9.35 $224.87(95.8) %



Total Closed for Entire Period - 3 Hotels 1,196 $- $258.16(100.0)%- %94.9%(94.9) % $- $245.02(100.0)%



Resorts - 12 Hotels 2,212 $262.94$257.292.2 %40.6%75.6%(35.0) % $106.70$194.59(45.2) %



Portfolio Total ^(1) 9,600 $201.82$238.50(15.4) %18.6%82.7%(64.1) % $37.55 $197.14(81.0) %

^ Amounts exclude the operating results of Frenchman's Reef & Morning Star(1) Marriott Beach Resort for all periods presented.

Operating Statistics - Year to Date



Number ADR Occupancy RevPAR of Rooms YTD 2020 YTD 2019 B/(W) 2019YTD 2020YTD 2019B/(W) 2019YTD 2020 YTD 2019 B/(W) 2019





Atlanta Marriott Alpharetta 318 $154.29$166.97(7.6) % 23.8 % 72.7 % (48.9) % $36.70 $121.42(69.8) %

Bethesda Marriott Suites 272 $150.98$176.98(14.7) % 23.6 % 73.0 % (49.4) % $35.60 $129.23(72.5) %

Courtyard New York Manhattan/Midtown East 321 $150.19$244.82(38.7) % 63.7 % 95.6 % (31.9) % $95.61 $234.03(59.1) %

Kimpton Shorebreak Resort 157 $237.64$268.57(11.5) % 54.6 % 78.7 % (24.1) % $129.77$211.27(38.6) %

L'Auberge de Sedona 88 $585.16$596.05(1.8) % 59.1 % 78.6 % (19.5) % $345.92$468.42(26.2) %

Salt Lake City Marriott Downtown at City Creek510 $158.91$173.43(8.4) % 22.9 % 69.4 % (46.5) % $36.39 $120.42(69.8) %

Westin Fort Lauderdale Beach Resort 433 $224.57$204.389.9 % 42.8 % 81.8 % (39.0) % $96.09 $167.26(42.6) %

Westin San Diego Downtown 436 $175.26$194.30(9.8) % 39.2 % 82.0 % (42.8) % $68.65 $159.39(56.9) %

Westin Washington D.C. City Center 410 $182.86$206.84(11.6) % 23.6 % 86.9 % (63.3) % $43.20 $179.77(76.0) %

Worthington Renaissance Fort Worth Hotel 504 $177.91$186.24(4.5) % 28.7 % 75.4 % (46.7) % $51.10 $140.50(63.6) %

Total Open for Entire Period - 10 Hotels 3,449 $197.62$209.05(5.5) % 34.7 % 79.2 % (44.5) % $68.55 $165.59(58.6) %



Total Partially Open During Period - 20 Hotels6,151 $218.13$250.81(13.0) % 25.4 % 79.9 % (54.5) % $55.35 $200.52(72.4) %



Resorts - 12 Hotels 2,212 $283.93$272.924.0 % 38.9 % 77.0 % (38.1) % $110.53$210.13(47.4) %



Portfolio Total ^(1) 9,600 $209.23$235.89(11.3) % 28.7 % 79.7 % (51.0) % $60.09 $187.96(68.0) %

^ Amounts exclude the operating results of Frenchman's Reef & Morning Star(1) Marriott Beach Resort for all periods presented.

Hotel Adjusted EBITDA Reconciliation



Third Quarter 2020

Plus: Plus: Plus: Equals:

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

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

Barbary Beach House Key West 92 $1,586 $(924) $ 669 $ - $ - $(255)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Salt Lake City Marriott Downtown at City Creek 92 $1,038 $(1,826) $ 552 $ 538 $ - $(736)

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

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

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

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

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

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

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

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

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

Worthington Renaissance Fort Worth Hotel 92 $1,689 $(2,685) $ 1,126 $ 769 $ 2 $(788)

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

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

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

^ 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.

Hotel Adjusted EBITDA Reconciliation



Third Quarter 2019

Plus: Plus: Plus: Equals:

Total Net Income / (Loss)DepreciationInterest Adjustments^ (1)Hotel Adjusted Revenues Expense EBITDA

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Hotel Palomar Phoenix $4,325 $ (424) $662 $39 $ 293 $570

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

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

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

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

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

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

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

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

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

The Lodge at Sonoma Renaissance Resort & Spa $7,549 $ 2,070 $508 $281 $ - $2,859

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

Westin Boston Waterfront $24,009 $ 2,413 $2,418 $2,182 $ (60) $6,953

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

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

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

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

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

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

Comparable Total $240,278 $ 35,723 $29,474 $6,854 $ 1,748 $73,750

^ 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.

Hotel Adjusted EBITDA Reconciliation



Year to Date 2020

Plus: Plus: Plus: Equals:

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

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

Barbary Beach House Key West 204 $7,510 $(1,008) $ 2,026 $ - $- $1,018

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Salt Lake City Marriott Downtown at City Creek 274 $8,666 $(2,524) $ 1,663 $ 1,712 $- $851

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

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

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

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

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

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

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

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

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

Worthington Renaissance Fort Worth Hotel 274 $11,314 $(6,490) $ 3,383 $ 2,302 $6 $(799)

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

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

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

^ 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.

Hotel Adjusted EBITDA Reconciliation



Year to Date 2019

Plus: Plus: Plus: Equals:

Total Net Income / (Loss)DepreciationInterest ExpenseAdjustments^ Hotel Adjusted Revenues (1) EBITDA

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Hotel Palomar Phoenix $18,008 $ 2,319 $1,991 $ 116 $883 $5,309

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Total $700,572 $ 104,548 $87,805 $ 20,587 $5,247 $218,028

Less: Frenchman's Reef & Morning Star Marriott Beach Resort$- $ (8,798) $- $ - $- $(8,798)

Comparable Total $700,572 $ 95,750 $87,805 $ 20,587 $5,247 $209,230

^ 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.

View original content: http://www.prnewswire.com/news-releases/diamondrock-hospitality-company-reports-third-quarter-2020-results-301167527.html

SOURCE DiamondRock Hospitality Company