EX-99.1 2 exhibit9912q2025.htm EX-99.1 Document

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COMPANY CONTACTS

Briony Quinn
Chief Financial Officer
(240) 744-1196

Dori Kesten
Capital Markets
(617) 835-8366

DIAMONDROCK HOSPITALITY COMPANY REPORTS SECOND QUARTER 2025 RESULTS
Completed $1.5 Billion Refinancing, No Debt Maturities Until 2028
Repurchased 3.6 Million Common Shares Year To Date
Increasing Midpoint of 2025 Adjusted EBITDA and FFO Per Share Guidance
BETHESDA, Maryland, Thursday, August 7, 2025 – DiamondRock Hospitality Company (the “Company”) (NYSE: DRH), a lodging real estate investment trust that owns a portfolio of 36 premium hotels and resorts in the United States, today announced results of operations for the quarter ended June 30, 2025.

HIGHLIGHTS
•Net Income: Net income attributable to common stockholders was $38.4 million, or $0.18 per diluted share, an increase of 73.8% compared to the second quarter of 2024.
•Comparable RevPAR: $226.95, an increase of 0.1% compared to the second quarter of 2024, which was in line with expectations.
•Comparable Total RevPAR: $350.00, an increase of 1.1% compared to the second quarter of 2024, which was stronger than expected with a 3.1% increase in out-of-room revenues.
•Comparable Hotel Adjusted EBITDA: $95.4 million, a decrease of 1.9% compared to the second quarter of 2024.
•Comparable Hotel Adjusted EBITDA Margin: 31.19%, a decrease of 97 basis points compared to the second quarter of 2024.
•Adjusted EBITDA: $90.5 million, a decrease of 4.7% to the second quarter of 2024.
•Adjusted FFO per Share: $0.35, which is flat to the second quarter of 2024.
•Debt Refinancing: On July 22, 2025, the Company completed a $1.5 billion refinancing of its senior unsecured credit facility, increasing its size, funding all near-term debt maturities, and extending its maturity schedule.
•Share Repurchases: Year-to-date through August 7, 2025, the Company has repurchased 3.6 million shares of its common stock at a weighted average price of $7.64 per share for total consideration of approximately $27.3 million.

"RevPAR in the second quarter was in line with our expectations, with demand down modestly and rates up compared to the same time last year. Out-of-room spend accelerated from levels experienced in the first quarter, and that trend has continued into the third quarter. Excluding a larger than anticipated property tax increase in Chicago, we were able to limit expense growth to just 0.7%. Comparable Hotel Adjusted EBITDA margins contracted 97 basis points, but excluding the impact of the Chicago property tax increase, margins expanded by an impressive 30 basis points.



We are beginning to see signs of a stabilization in travel patterns in our higher end portfolio and expect out-of-room revenues to remain a bright spot in the second half of the year. Policy and macroeconomic uncertainty remain, although to a lesser extent than three months ago. We are comfortable raising the midpoint of our 2025 Adjusted EBITDA and FFO per share guidance.

In July, we successfully refinanced and extended the maturities under our senior unsecured credit facility, increasing its size from $1.2 billion to $1.5 billion with pricing unchanged. Following the prepayment of our remaining mortgage loan in early September, we will have no hotels encumbered by debt, all our debt will be fully prepayable at any time without cost, and we will have no debt maturities until 2028.

We continued to take advantage of the disconnect in our share price and repurchased an additional $12.6 million of common shares in the second quarter, or $27.3 million year to date. With an implied capitalization rate of 9.7% based on consensus estimates, we continue to view share repurchases as one of our best uses of capital."

- Jeffrey J. Donnelly, Chief Executive Officer of DiamondRock Hospitality Company

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 all hotels owned as of June 30, 2025 for all periods presented. See “Reconciliation of Comparable Operating Results” attached to this press release for a reconciliation to historical amounts.
Three Months Ended June 30,Six Months Ended June 30,
20252024Change20252024Change
($ amounts in millions, except hotel statistics and per share amounts)
Comparable Operating Results(1)
ADR$295.78 $292.59 1.1 %$287.24 $282.04 1.8 %
Occupancy76.7 %77.5 %(0.8)%72.0 %72.6 %(0.6)%
RevPAR$226.95 $226.83 0.1 %$206.69 $204.67 1.0 %
Total RevPAR$350.00 $346.27 1.1 %$320.95 $316.69 1.3 %
Room Revenues$198.2 $198.0 0.1 %$359.0 $357.2 0.5 %
Total Revenues$305.7 $302.2 1.2 %$557.5 $552.7 0.9 %
Hotel Adjusted EBITDA$95.4 $97.2 (1.9)%$156.7 $157.3 (0.4)%
Hotel Adjusted EBITDA Margin31.19 %32.16 %(97) bps28.11 %28.45 %(34) bps
Available Rooms873,489 872,781 708 1,737,039 1,745,289 (8,250)
Actual Operating Results(2)
Total Revenues$305.7 $309.3 (1.2)%$560.6 $565.7 (0.9)%
Net income attributable to common stockholders$38.4 $22.1 73.8 %$47.8 $28.0 70.7 %
Earnings per diluted share$0.18 $0.10 80.0 %$0.23 $0.13 76.9 %
Adjusted EBITDA(3)
$90.5 $95.0 (4.7)%$146.6 $151.3 (3.1)%
Adjusted FFO(3)
$72.3 $75.0 (3.6)%$111.8 $113.6 (1.6)%
Adjusted FFO per diluted share(3)
$0.35 $0.35 — %$0.53 $0.53 — %
(1) Amounts include the pre-acquisition operating results for AC Hotel Minneapolis Downtown from January 1, 2024 to June 30, 2024 and exclude the operating results for Westin Washington D.C. City Center sold on February 19, 2025. The pre-acquisition operating results were obtained from the seller of the hotel during the acquisition due diligence process. We have made no adjustments to the amounts provided to us by the seller. The pre-acquisition operating results were not audited or reviewed by the Company's independent auditors.
(2) Actual operating results include the operating results of all hotels for the Company's respective ownership periods.
(3) Effective January 1, 2025, the Company excludes share-based compensation from its calculations of Adjusted EBITDA and Adjusted FFO. Amounts reported for 2024 have been adjusted to reflect the current year presentation.

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DEBT REFINANCING

On July 22, 2025, the Company successfully refinanced, upsized, and extended the maturities under its senior unsecured credit facility (the "Credit Facility"), further enhancing the strength and flexibility of its conservative balance sheet. The Company entered into an amendment and restatement of its existing $1.2 billion facility, increasing its size to $1.5 billion. The Credit Facility is comprised of a $400 million revolving credit facility maturing in January 2030, exclusive of two six-month extension options, a $500 million term loan maturing in January 2028, exclusive of two six-month extension options, a $300 million term loan maturing in January 2029, exclusive of two six-month extension options, and a $300 million term loan maturing in January 2030. The Credit Facility bears interest pursuant to a leverage-based pricing grid ranging from 1.35% to 2.25% over SOFR. Based upon the Company's current leverage, the pricing is at the lowest end of the grid.

The Company is utilizing the incremental $300 million of proceeds under the Credit Facility to repay three mortgage loans that matured or will mature in 2025. The mortgage loan secured by the Worthington Renaissance Fort Worth Hotel and the Hotel Clio, which together had a principal balance of approximately $125.0 million, were repaid on their respective maturity dates in May 2025 and July 2025 prior to the closing of the Credit Facility. The Company intends to prepay the $166.2 million mortgage loan secured by the Westin Boston Seaport District in September 2025. Following this repayment, the Company will have no debt maturities until January 2028 and its portfolio will be fully unencumbered by secured debt.

CAPITAL EXPENDITURES

The Company invested approximately $41.3 million in capital improvements at its hotels during the six months ended June 30, 2025. The Company continues to expect to invest approximately $85.0 to $95.0 million in capital improvements at its hotels in 2025. Significant projects in 2025 include the following:

•Hilton Garden Inn New York / Times Square Central: The Company completed a renovation of the hotel's guestrooms during the first quarter of 2025.
•Sedona Repositioning: The Company commenced the repositioning of Orchards Inn as the Cliffs at L'Auberge on November 1, 2024. The repositioning will integrate the hotel with the adjacent L'Auberge de Sedona and includes construction of a new hillside pool and path connecting the two properties, renovation of the guestrooms and creation of a new arrival experience and new outdoor event space. The renovation of the guestrooms, arrival experience and event space was completed in May 2025. The Company expects to complete the pool and path project in the third quarter of 2025, after which the two properties will operate as one resort.
•Kimpton Hotel Palomar Phoenix: The Company commenced a renovation of the hotel's guestrooms during the second quarter of 2025, which is expected to be completed in September 2025.
•Courtyard New York Manhattan/Midtown East: The Company expects to commence a renovation of the hotel's guestrooms during the fourth quarter of 2025.

BALANCE SHEET

As of June 30, 2025, the Company had total debt outstanding of $1.0 billion, consisting of $800.0 million of unsecured term loans and two property-specific mortgage loans totaling $220.9 million, with a weighted average interest rate of 5.17%. The Company used a portion of the proceeds from the Credit Facility refinancing to repay the mortgage loan secured by the Hotel Clio that matured on July 6, 2025 and intends to prepay its one remaining mortgage loan in September 2025. As of July 31, 2025, the Company had $400 million available under its undrawn revolving credit facility and approximately $287.1 million of unrestricted cash on hand.

SHARE REPURCHASE PROGRAM

During the quarter ended June 30, 2025, the Company repurchased 1.7 million shares of its common stock at an average price of $7.46 per share for a total purchase price of $12.6 million. Subsequent to quarter end, the Company repurchased 0.5 million shares of its common stock at an average price of $7.64 for a total purchase price of $3.6 million. The Company currently has $146.8 million of remaining capacity under its $200.0 million share repurchase program.




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DIVIDENDS

On August 7, 2025, the Company's Board of Directors declared a quarterly cash dividend of $0.08 per share on its common stock. The dividend will be paid on October 14, 2025 to shareholders of record as of September 30, 2025. The Company’s Board of Directors also declared a quarterly dividend of $0.515625 per share on its 8.250% Series A Cumulative Redeemable Preferred Stock. The dividend is payable on September 30, 2025 to shareholders of record as of September 19, 2025.

GUIDANCE
Achievement of the anticipated results is subject to the risks disclosed in the Company’s filings with the U.S. Securities and Exchange Commission, which may cause actual results to differ materially from the anticipated results expressed or implied below.

The Company anticipates full year 2025 results to be in the following ranges:

Current GuidancePrevious GuidanceChange at Midpoint
MetricLow EndHigh EndLow EndHigh End
Comparable RevPAR Growth(1.0)%1.0%(1.0)%1.0%—%
Comparable Total RevPAR Growth(0.5%)1.5%(1.0)%1.0%0.5%
Adjusted EBITDA$275 million$295 million$270 million$295 million$2.5 million
Adjusted FFO$200.5 million$220.5 million$198 million$223 million—
Adjusted FFO per share$0.96 per share$1.06 per share$0.94 per share$1.06 per share$0.01

Full year 2025 guidance is based in part on the following assumptions:
•Full year corporate expenses of approximately $24 million to $25 million, excluding share-based compensation, which is unchanged from prior guidance;
•Full year cash interest expense of approximately $63 million to $64 million, an increase of $2.5 million due to the upsizing of the Company's Credit Facility beyond initial expectations;
•Fully diluted weighted average common shares and units of 209.0 million; and
•3,502,175 full year available rooms.

EARNINGS CALL
The Company will host a conference call to discuss its second quarter results on Friday, August 8, 2025, at 9:00 a.m. Eastern Time. The conference call will be accessible by telephone and through the internet. Interested individuals are requested to register for the call using this link to obtain dial-in and webcast details. Registration details are also available by visiting https://investor.drhc.com. A replay of the conference call webcast will be archived and available online.

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 leisure destinations and top gateway markets. The Company currently owns 36 premium quality hotels with approximately 9,600 rooms. The Company has strategically positioned its portfolio to be operated both under leading global brand families as well as independent 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 any future pandemic, epidemic or outbreak of any highly infectious disease on the U.S., regional and global economies, travel, the hospitality industry, and the

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financial condition and results of operations of the Company and its hotels; negative developments or volatility in the economy, including, but not limited to elevated inflation and interest rates, job loss or growth trends, the imposition of trade sanctions or tariffs and any potential retaliatory responses thereto, an increase in unemployment or a decrease in corporate earnings and investment; risks associated with the lodging industry overall, including, without limitation, decreases in the frequency of travel, decreases in the demand for, or frequency of, international travel as a result of evolving global trade dynamics or otherwise, and increases in operating costs; relationships with property managers; the ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; changes in 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.

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DIAMONDROCK HOSPITALITY COMPANY

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

June 30, 2025December 31, 2024
ASSETS(unaudited)
Property and equipment, net$2,615,010 $2,631,221 
Assets held for sale— 93,400 
Right-of-use assets89,485 89,931 
Restricted cash51,155 47,408 
Due from hotel managers171,819 145,947 
Prepaid and other assets 81,444 82,963 
Cash and cash equivalents52,402 81,381 
Total assets$3,061,315 $3,172,251 
LIABILITIES AND EQUITY
Liabilities:
Debt, net of unamortized debt issuance costs1,020,320 1,095,294 
Lease liabilities86,123 85,235 
Due to hotel managers131,948 121,734 
Liabilities of assets held for sale— 3,352 
Deferred rent75,614 73,535 
Unfavorable contract liabilities, net57,378 58,208 
Accounts payable and accrued expenses 80,477 79,201 
Distributions declared and unpaid17,394 49,034 
Deferred income related to key money, net7,563 7,726 
Total liabilities1,476,817 1,573,319 
Equity:
Preferred stock, $0.01 par value; 10,000,000 shares authorized;
    8.250% Series A Cumulative Redeemable Preferred Stock (liquidation preference $25.00 per share), 4,760,000 shares issued and outstanding at June 30, 2025 and December 31, 202448 48 
   Common stock, $0.01 par value; 400,000,000 shares authorized; 205,375,594 and 207,592,210 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively2,053 2,076 
Additional paid-in capital2,243,618 2,268,521 
Accumulated other comprehensive loss(5,473)(1,360)
Distributions in excess of earnings(664,721)(679,050)
Total stockholders’ equity1,575,525 1,590,235 
Noncontrolling interests8,973 8,697 
Total equity1,584,498 1,598,932 
Total liabilities and equity$3,061,315 $3,172,251 



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DIAMONDROCK HOSPITALITY COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
(unaudited)
Three Months Ended June 30, Six Months Ended June 30,
2025202420252024
Revenues:
Rooms
$198,237 $203,487 $361,355 $366,994 
Food and beverage
78,828 78,111 145,669 146,492 
Other
28,655 27,682 53,549 52,217 
Total revenues
305,720 309,280 560,573 565,703 
Operating Expenses:
Rooms
47,272 47,585 91,115 91,553 
Food and beverage
50,548 50,717 96,965 97,956 
Other departmental and support expenses68,719 67,817 134,005 132,417 
Management fees
7,406 8,008 12,424 13,318 
Franchise fees
10,003 10,567 19,051 19,593 
Other property-level expenses28,017 27,188 52,916 53,806 
Depreciation and amortization
28,156 27,873 56,048 56,186 
Corporate expenses
9,465 28,519 17,148 37,423 
Total operating expenses
249,586 268,274 479,672 502,252 
Interest expense
14,868 16,202 30,026 32,448 
Interest (income) and other (income) expense, net(764)(1,195)(2,228)(2,264)
  Total other expenses, net
14,104 15,007 27,798 30,184 
Income before income taxes
42,030 25,999 53,103 33,267 
Income tax expense
(991)(1,368)(149)(278)
Net income
41,039 24,631 52,954 32,989 
Less: Net income attributable to noncontrolling interests
(204)(101)(262)(131)
Net income attributable to the Company
40,835 24,530 52,692 32,858 
Distributions to preferred stockholders(2,454)(2,454)(4,908)(4,908)
Net income attributable to common stockholders$38,381 $22,076 $47,784 $27,950 
Earnings per share:
Earnings per share available to common stockholders - basic
$0.19 $0.10 $0.23 $0.13 
Earnings per share available to common stockholders - diluted
$0.18 $0.10 $0.23 $0.13 
Weighted-average number of common shares outstanding:
Basic
206,804,961 211,195,763 207,652,548 211,432,403
Diluted
207,916,308 212,016,445 209,161,359 212,276,815



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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 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 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 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 comprehensive income and consolidated statements of 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 and EBITDAre

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.

FFO

The Company computes FFO in accordance with standards established by Nareit, which defines FFO as net income (calculated 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.

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Adjustments to EBITDAre and FFO

We adjust EBITDAre and FFO 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 and Adjusted FFO when combined with U.S. GAAP net income, EBITDAre and FFO, is beneficial to an investor's complete understanding of our consolidated and property-level operating performance. We adjust EBITDAre and FFO 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 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 and comprehensive income 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 and Hotel Pre-Opening Costs: We exclude the transition costs associated with a change in hotel manager and the pre-opening costs associated with the redevelopment or rebranding of a hotel because we believe these items do not reflect the ongoing performance of the Company or our hotels.

•Share-Based Compensation Expense: We exclude share-based compensation expense as it is a non-cash item. This adjustment aligns with the calculation of Adjusted EBITDA for our financial covenant ratios under our credit facility, supporting consistency in our financial reporting and covenant compliance, as well as comparability with our peers.

•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: non-cash realized gains or losses on our deferred compensation plan assets; management or franchise contract termination fees; terminated transaction costs; 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 unrealized fair value adjustments to interest rate swaps and the portion of our non-cash ground lease expense recognized as interest expense. We exclude these non-cash amounts because they do not reflect the underlying performance of the Company.

Hotel Adjusted EBITDA

We believe that Hotel Adjusted 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. With respect to Hotel Adjusted EBITDA, we

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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. Hotel Adjusted EBITDA margins are calculated as Hotel Adjusted EBITDA divided by total hotel revenues.

Reconciliations of Non-GAAP Measures

EBITDA, EBITDAre, Adjusted EBITDA and Hotel Adjusted EBITDA

The following tables are reconciliations of our GAAP net income to EBITDA, EBITDAre and Adjusted EBITDA and Hotel Adjusted EBITDA (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2025
2024 (As Adjusted)(1)
2025
2024 (As Adjusted)(1)
Net income $41,039 $24,631 $52,954 $32,989 
Interest expense 14,868 16,202 30,026 32,448 
Income tax expense991 1,368 149 278 
Real estate related depreciation and amortization28,156 27,873 56,048 56,186 
EBITDA/EBITDAre
85,054 70,074 139,177 121,901 
Non-cash lease expense and other amortization1,284 1,555 2,583 3,073 
Share-based compensation expense (2)
2,891 2,512 3,556 5,147 
Hotel pre-opening costs321 535 344 769 
Terminated transaction costs907 — 907 — 
Severance costs — 20,362 — 20,362 
Adjusted EBITDA90,457 95,038 146,567 151,252 
Corporate expenses5,655 5,636 12,003 11,884 
Interest (income) and other (income) expense, net(752)(1,186)(1,546)(2,234)
Hotel Adjusted EBITDA$95,360 $99,488 $157,024 $160,902 
(1) Effective January 1, 2025, the Company excludes share-based compensation expense from its calculation of Adjusted EBITDA. Amounts reported for 2024 have been adjusted to reflect the current year presentation.
(2) For each of the three months ended June 30, 2025 and 2024, amounts include less than $0.1 million of non-cash realized gains related to our deferred compensation plan. For the six months ended June 30, 2025 and 2024, amounts include $0.7 million and less than $0.1 million, respectively, of non-cash realized gains related to our deferred compensation plan.

Full Year 2025 Guidance
Low EndHigh End
Net income$79,710 $100,710 
Interest expense64,000 63,000 
Income tax expense 683 1,683 
Real estate related depreciation and amortization116,000 115,000 
EBITDAre
260,393 280,393 
Non-cash lease expense and other amortization6,200 6,200 
Share-based compensation expense7,000 7,000 
Terminated transaction costs907 907 
Hotel pre-opening costs500 500 
Adjusted EBITDA$275,000 $295,000 


10

FFO and Adjusted FFO
The following tables are reconciliations of our GAAP net income to FFO and Adjusted FFO (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2025
2024 (As Adjusted)(1)
2025
2024 (As Adjusted)(1)
Net income $41,039 $24,631 $52,954 $32,989 
Real estate related depreciation and amortization28,156 27,873 56,048 56,186 
FFO69,195 52,504 109,002 89,175 
Distribution to preferred stockholders(2,454)(2,454)(4,908)(4,908)
FFO available to common stock and unit holders66,741 50,050 104,094 84,267 
Non-cash lease expense and other amortization1,470 1,555 2,945 3,073 
Share-based compensation expense (2)
2,891 2,512 3,556 5,147 
Terminated transaction costs907 — 907 — 
Severance costs— 20,362 — 20,362 
Hotel pre-opening costs321 535 344 769 
Adjusted FFO available to common stock and unit holders$72,330 $75,014 $111,846 $113,618 
Adjusted FFO available to common stock and unit holders, per diluted share$0.35 $0.35 $0.53 $0.53 
Diluted weighted average shares and units208,943 212,879 210,178 213,086 
(1) Effective January 1, 2025, the Company excludes share-based compensation from its calculation of Adjusted FFO. Amounts reported for 2024 have been adjusted to reflect the current year presentation.
(2) For each of the three months ended June 30, 2025 and 2024, amounts include less than $0.1 million of non-cash realized gains related to our deferred compensation plan. For the six months ended June 30, 2025 and 2024, amounts include $0.7 million and less than $0.1 million, respectively, of non-cash realized gains related to our deferred compensation plan.
Full Year 2025 Guidance
Low EndHigh End
Net income $79,710 $100,710 
Real estate related depreciation and amortization116,000 115,000 
FFO195,710 215,710 
Distribution to preferred stockholders(9,817)(9,817)
FFO available to common stock and unit holders185,893 205,893 
Non-cash lease expense and other amortization6,200 6,200 
Share-based compensation expense7,000 7,000 
Terminated transaction costs907 907 
Hotel pre-opening costs500 500 
Adjusted FFO available to common stock and unit holders$200,500 $220,500 
Adjusted FFO available to common stock and unit holders, per diluted share$0.96 $1.06 
Diluted weighted average shares and units209,000 209,000 



11

Reconciliation of Comparable Operating Results

The following presents the revenues, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA Margin together with comparable prior year results (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Revenues$305,720 $309,280 $560,573 $565,703 
Hotel revenues from prior ownership (1)
— 2,966 — 4,500 
Hotel revenues from sold hotel (2)
— (10,029)(3,077)(17,495)
Comparable Revenues$305,720 $302,217 $557,496 $552,708 
Hotel Adjusted EBITDA$95,360 $99,488 $157,024 $160,902 
Hotel Adjusted EBITDA from prior ownership (1)
— 1,050 — 1,085 
Hotel Adjusted EBITDA from sold hotel (2)
— (3,332)(331)(4,734)
Comparable Hotel Adjusted EBITDA$95,360 $97,206 $156,693 $157,253 
Hotel Adjusted EBITDA Margin31.19 %32.17 %28.01 %28.44 %
Comparable Hotel Adjusted EBITDA Margin31.19 %32.16 %28.11 %28.45 %
(1) Amounts represent the pre-acquisition operating results for AC Hotel Minneapolis Downtown from January 1, 2024 to June 30, 2024. The pre-acquisition operating results were obtained from the seller of the hotel during the acquisition due diligence process. We have made no adjustments to the amounts provided to us by the seller. The pre-acquisition operating results were not audited or reviewed by the Company's independent auditors.
(2) Amounts represent the operating results for Westin Washington D.C. City Center sold on February 19, 2025.

Selected Quarterly Comparable Operating Information

The following table is presented to provide investors with selected quarterly comparable operating information for the Company's current portfolio of 36 hotels.

Quarter 1, 2024Quarter 2, 2024Quarter 3, 2024Quarter 4, 2024Full Year 2024
ADR$269.95 $292.59 $282.05 $291.24 $284.26 
Occupancy67.6 %77.5 %76.2 %69.5 %72.7 %
RevPAR$182.50 $226.83 $214.79 $202.40 $206.64 
Total RevPAR$287.09 $346.27 $318.60 $309.18 $315.28 
Revenues (in thousands)$250,491 $302,217 $281,127 $272,783 $1,106,618 
Hotel Adjusted EBITDA (in thousands)$60,047 $97,206 $82,003 $73,899 $313,155 
Hotel Adjusted EBITDA Margin23.97 %32.16 %29.17 %27.09 %28.30 %
Available Rooms872,508 872,781 882,372 882,280 3,509,941 

12

Market Capitalization as of June 30, 2025
(in thousands)
Enterprise Value
Common equity capitalization (at June 30, 2025 closing price of $7.66/share)$1,592,487 
Preferred equity capitalization (at liquidation value of $25.00/share)119,000 
Consolidated debt (face amount)1,020,876 
Cash and cash equivalents(52,402)
Total enterprise value$2,679,961 
Share Reconciliation
Common shares outstanding205,376 
Operating partnership units1,135 
Unvested restricted stock held by management and employees850 
Share grants under deferred compensation plan536 
Combined shares and units207,897


Debt Summary
(dollars in thousands)
Outstanding Principal as of
LoanInterest RateTermJune 30, 2025August 7, 2025Maturity
Hotel Clio4.33%Fixed$53,910 $— July 2025
Westin Boston Seaport District4.36%Fixed166,966 166,154 November 2025
Unsecured term loan
SOFR + 1.35% (1)
Variable500,000 500,000 
January 2028 (3)
Unsecured term loan
SOFR + 1.35% (2)
Variable300,000 300,000 
January 2029 (3)
Unsecured term loan
SOFR + 1.35% (2)
Variable— 300,000 January 2030
Senior unsecured credit facility SOFR + 1.40%Variable— — 
January 2030 (3)
Total debt1,020,876 1,266,154 
     Unamortized debt issuance costs (4)
(556)(1,353)
Debt, net of unamortized debt issuance costs$1,020,320 $1,264,801 
Leverage MetricsAs of June 30, 2025As of August 7, 2025
Total weighted-average interest rate (5)
5.2%5.3%
Net debt to EBITDA (6)
3.3x-
Net debt/ Preferred to EBITDA (6)
3.7x-
Fixed charge coverage4.6x-
Average years to maturity1.42.8

(1)    Interest rate was 5.12% as of June 30, 2025 and 5.10% as of August 7, 2025, which includes the effect of interest rate swaps.
(2)    Interest rate was 5.74% as of June 30, 2025 and 5.69% as of August 7, 2025.
(3)    Maturity date may be extended for two six-month periods upon the payment of applicable fees and the satisfaction of certain customary conditions.
(4)    Excludes debt issuance costs related to our senior unsecured credit facility, which are included within Prepaid and Other Assets on the accompanying consolidated balance sheet.
(5)    Weighted-average interest rate includes the effect of interest rate swaps.
(6) Trailing 12 month EBITDA as of June 30, 2025.



13

Operating Statistics – Second Quarter
RoomsADROccupancyRevPAR Total RevPAR
2Q 20252Q 2024Change2Q 20252Q 2024Change2Q 20252Q 2024Change2Q 20252Q 2024Change
AC Hotel Minneapolis Downtown (1)
245$157.62 $178.99 (11.9)%68.0 %66.0 %2.0 %$107.13 $118.21 (9.4)%$123.16 $133.02 (7.4)%
Atlanta Marriott Alpharetta318 $159.93 $156.89 1.9 %69.7 %69.7 %— %$111.51 $109.41 1.9 %$150.07 $158.18 (5.1)%
Bourbon Orleans Hotel220 $222.29 $243.76 (8.8)%73.0 %78.6 %(5.6)%$162.35 $191.53 (15.2)%$214.85 $241.16 (10.9)%
Cavallo Point, The Lodge at the Golden Gate 142 $563.32 $574.78 (2.0)%63.2 %61.7 %1.5 %$355.86 $354.87 0.3 %$968.38 $978.70 (1.1)%
Chicago Marriott Downtown Magnificent Mile1,200 $283.76 $279.63 1.5 %71.9 %67.4 %4.5 %$203.91 $188.37 8.2 %$347.15 $306.39 13.3 %
Chico Hot Springs Resort & Day Spa117 $243.15 $201.95 20.4 %63.7 %72.5 %(8.8)%$154.79 $146.43 5.7 %$345.69 $355.60 (2.8)%
Courtyard Denver Downtown177 $232.21 $221.52 4.8 %84.5 %83.7 %0.8 %$196.29 $185.35 5.9 %$216.05 $204.72 5.5 %
Courtyard New York Manhattan/Fifth Avenue189 $330.15 $316.32 4.4 %99.0 %88.9 %10.1 %$327.01 $281.34 16.2 %$332.59 $288.49 15.3 %
Courtyard New York Manhattan/Midtown East321 $354.49 $359.88 (1.5)%91.7 %94.0 %(2.3)%$325.08 $338.22 (3.9)%$334.11 $348.70 (4.2)%
Embassy Suites by Hilton Bethesda272 $182.91 $190.12 (3.8)%78.3 %83.5 %(5.2)%$143.19 $158.69 (9.8)%$166.46 $178.96 (7.0)%
Havana Cabana Key West106 $242.76 $287.85 (15.7)%82.5 %83.1 %(0.6)%$200.18 $239.30 (16.3)%$303.70 $328.80 (7.6)%
Henderson Beach Resort270 $445.60 $464.72 (4.1)%71.1 %74.4 %(3.3)%$316.74 $345.84 (8.4)%$606.22 $613.43 (1.2)%
Henderson Park Inn37 $662.88 $684.85 (3.2)%83.9 %84.9 %(1.0)%$556.37 $581.11 (4.3)%$915.22 $899.70 1.7 %
Hilton Garden Inn New York/Times Square Central282 $294.15 $284.16 3.5 %97.7 %89.5 %8.2 %$287.31 $254.22 13.0 %$321.79 $284.28 13.2 %
Hotel Champlain Burlington258 $208.66 $240.84 (13.4)%73.6 %75.9 %(2.3)%$153.61 $182.85 (16.0)%$228.38 $243.22 (6.1)%
Hotel Clio199 $336.34 $327.64 2.7 %79.4 %83.7 %(4.3)%$266.93 $274.30 (2.7)%$459.90 $462.34 (0.5)%
Hotel Emblem San Francisco96 $188.40 $184.02 2.4 %71.4 %62.5 %8.9 %$134.51 $115.04 16.9 %$162.90 $142.72 14.1 %
Kimpton Hotel Palomar Phoenix242 $224.14 $218.99 2.4 %67.7 %76.2 %(8.5)%$151.63 $166.96 (9.2)%$255.25 $272.32 (6.3)%
Kimpton Shorebreak Fort Lauderdale Beach Resort96 $192.35 $182.23 5.6 %74.3 %78.5 %(4.2)%$142.96 $142.99 — %$291.47 $267.26 9.1 %
Kimpton Shorebreak Huntington Beach Resort157 $307.13 $326.16 (5.8)%81.9 %85.7 %(3.8)%$251.58 $279.54 (10.0)%$383.45 $402.32 (4.7)%
L'Auberge de Sedona 88 $882.40 $951.60 (7.3)%76.2 %74.2 %2.0 %$672.71 $705.97 (4.7)%$1,183.79 $1,227.01 (3.5)%
Lake Austin Spa Resort40 $1,077.87 $1,065.58 1.2 %63.8 %70.6 %(6.8)%$688.18 $752.64 (8.6)%$1,677.02 $1,725.14 (2.8)%
Margaritaville Beach House Key West186 $363.85 $371.14 (2.0)%88.6 %88.5 %0.1 %$322.27 $328.50 (1.9)%$450.94 $461.12 (2.2)%
Orchards Inn Sedona70 $290.40 $301.79 (3.8)%11.6 %68.1 %(56.5)%$33.64 $205.38 (83.6)%$176.85 $404.96 (56.3)%
Salt Lake City Marriott Downtown at City Creek510 $212.39 $196.94 7.8 %72.6 %73.0 %(0.4)%$154.21 $143.79 7.2 %$208.58 $194.44 7.3 %
The Dagny Boston403 $334.24 $302.27 10.6 %86.3 %89.3 %(3.0)%$288.31 $270.03 6.8 %$317.96 $298.14 6.6 %
The Gwen 311 $355.48 $331.59 7.2 %79.4 %81.5 %(2.1)%$282.15 $270.37 4.4 %$427.84 $405.17 5.6 %
The Hythe Vail344 $256.50 $266.05 (3.6)%40.3 %50.8 %(10.5)%$103.43 $135.12 (23.5)%$189.99 $255.37 (25.6)%
The Landing Lake Tahoe Resort & Spa82 $382.17 $361.62 5.7 %60.5 %64.9 %(4.4)%$231.39 $234.60 (1.4)%$439.34 $443.90 (1.0)%
The Lindy Renaissance Charleston Hotel167 $394.55 $388.06 1.7 %93.3 %94.0 %(0.7)%$368.17 $364.77 0.9 %$463.82 $442.56 4.8 %
The Lodge at Sonoma Resort182 $452.66 $435.59 3.9 %74.2 %72.4 %1.8 %$335.85 $315.21 6.5 %$532.04 $495.38 7.4 %
Tranquility Bay Beachfront Resort103 $604.79 $605.29 (0.1)%80.8 %79.7 %1.1 %$488.71 $482.14 1.4 %$629.10 $628.64 0.1 %
Westin Boston Waterfront793 $302.46 $281.74 7.4 %88.1 %89.8 %(1.7)%$266.47 $253.03 5.3 %$411.91 $412.33 (0.1)%
Westin Fort Lauderdale Beach Resort432 $250.54 $247.85 1.1 %78.9 %80.8 %(1.9)%$197.60 $200.38 (1.4)%$419.31 $419.88 (0.1)%
Westin San Diego Bayview436 $247.02 $236.19 4.6 %82.9 %75.3 %7.6 %$204.83 $177.91 15.1 %$267.17 $221.04 20.9 %
Worthington Renaissance Fort Worth Hotel504 $203.94 $217.36 (6.2)%76.3 %76.6 %(0.3)%$155.59 $166.58 (6.6)%$295.97 $309.09 (4.2)%
Comparable Total (2)
9,595 $295.78 $292.59 1.1 %76.7 %77.5 %(0.8)%$226.95 $226.83 0.1 %$350.00 $346.27 1.1 %
(1) Hotel was acquired on November 12, 2024. Amounts reflect the pre-acquisition operating results of the period from April 1, 2024 to June 30, 2024.
(2) Amounts include the pre-acquisition operating results of the AC Minneapolis Downtown acquired in 2024 and exclude the Westin Washington D.C. City Center which was sold in 2025.
14


Operating Statistics – Year to Date
RoomsADROccupancyRevPAR Total RevPAR
YTD 2025YTD 2024ChangeYTD 2025YTD 2024ChangeYTD 2025YTD 2024ChangeYTD 2025YTD 2024Change
AC Hotel Minneapolis Downtown (1)
245$146.65 $166.70 (12.0)%54.6 %53.3 %1.3 %$80.10 $88.81 (9.8)%$93.62 $100.94 (7.3)%
Atlanta Marriott Alpharetta318 $165.65 $160.91 2.9 %67.3 %64.4 %2.9 %$111.54 $103.69 7.6 %$158.63 $151.42 4.8 %
Bourbon Orleans Hotel220 $260.70 $252.55 3.2 %70.8 %77.6 %(6.8)%$184.67 $196.01 (5.8)%$238.40 $245.23 (2.8)%
Cavallo Point, The Lodge at the Golden Gate 142 $552.72 $563.98 (2.0)%57.4 %56.4 %1.0 %$317.05 $318.00 (0.3)%$863.68 $870.35 (0.8)%
Chicago Marriott Downtown Magnificent Mile1,200 $252.45 $236.23 6.9 %57.5 %56.9 %0.6 %$145.11 $134.30 8.0 %$253.34 $241.50 4.9 %
Chico Hot Springs Resort & Day Spa117 $225.20 $191.05 17.9 %61.8 %72.1 %(10.3)%$139.16 $137.79 1.0 %$329.64 $339.66 (3.0)%
Courtyard Denver Downtown177 $201.74 $192.63 4.7 %77.8 %75.7 %2.1 %$156.90 $145.88 7.6 %$175.45 $164.02 7.0 %
Courtyard New York Manhattan/Fifth Avenue189 $279.25 $262.20 6.5 %96.5 %89.0 %7.5 %$269.42 $233.30 15.5 %$274.86 $240.21 14.4 %
Courtyard New York Manhattan/Midtown East321 $304.09 $305.05 (0.3)%89.7 %92.6 %(2.9)%$272.67 $282.36 (3.4)%$282.28 $292.94 (3.6)%
Embassy Suites by Hilton Bethesda272 $174.28 $177.12 (1.6)%67.0 %71.2 %(4.2)%$116.72 $126.10 (7.4)%$136.18 $142.81 (4.6)%
Havana Cabana Key West106 $293.04 $348.71 (16.0)%87.6 %84.4 %3.2 %$256.83 $294.27 (12.7)%$361.23 $378.71 (4.6)%
Henderson Beach Resort270 $388.37 $415.52 (6.5)%55.9 %57.5 %(1.6)%$217.09 $239.12 (9.2)%$439.65 $446.45 (1.5)%
Henderson Park Inn37 $571.49 $574.38 (0.5)%68.0 %71.0 %(3.0)%$388.70 $407.88 (4.7)%$648.77 $639.63 1.4 %
Hilton Garden Inn New York/Times Square Central282 $255.78 $232.97 9.8 %83.0 %89.6 %(6.6)%$212.32 $208.70 1.7 %$241.33 $238.50 1.2 %
Hotel Champlain Burlington258 $179.80 $201.16 (10.6)%65.6 %66.1 %(0.5)%$117.91 $132.90 (11.3)%$178.07 $178.60 (0.3)%
Hotel Clio199 $311.20 $300.99 3.4 %74.7 %74.5 %0.2 %$232.49 $224.14 3.7 %$397.58 $381.06 4.3 %
Hotel Emblem San Francisco96 $216.44 $218.08 (0.8)%63.7 %60.7 %3.0 %$137.95 $132.27 4.3 %$169.02 $164.46 2.8 %
Kimpton Hotel Palomar Phoenix242 $257.26 $247.69 3.9 %72.2 %79.1 %(6.9)%$185.78 $195.90 (5.2)%$297.55 $311.66 (4.5)%
Kimpton Shorebreak Fort Lauderdale Beach Resort96 $235.02 $223.27 5.3 %80.4 %83.8 %(3.4)%$188.87 $187.08 1.0 %$356.35 $322.39 10.5 %
Kimpton Shorebreak Huntington Beach Resort157 $298.15 $307.37 (3.0)%77.8 %82.1 %(4.3)%$231.86 $252.39 (8.1)%$359.91 $376.35 (4.4)%
L'Auberge de Sedona 88 $836.90 $909.10 (7.9)%74.7 %69.6 %5.1 %$625.26 $632.50 (1.1)%$1,075.77 $1,071.71 0.4 %
Lake Austin Spa Resort40 $1,050.08 $1,036.17 1.3 %57.4 %64.1 %(6.7)%$602.64 $664.40 (9.3)%$1,459.90 $1,527.03 (4.4)%
Margaritaville Beach House Key West186 $422.83 $443.07 (4.6)%89.8 %90.1 %(0.3)%$379.71 $399.42 (4.9)%$508.65 $529.13 (3.9)%
Orchards Inn Sedona70 $289.58 $299.20 (3.2)%5.8 %62.6 %(56.8)%$16.91 $187.32 (91.0)%$150.06 $361.96 (58.5)%
Salt Lake City Marriott Downtown at City Creek510 $208.48 $197.58 5.5 %71.0 %69.4 %1.6 %$147.93 $137.07 7.9 %$202.94 $187.74 8.1 %
The Dagny Boston403 $271.07 $252.32 7.4 %82.1 %83.1 %(1.0)%$222.60 $209.63 6.2 %$251.40 $236.67 6.2 %
The Gwen 311 $295.44 $278.74 6.0 %73.2 %73.7 %(0.5)%$216.32 $205.54 5.2 %$323.70 $299.27 8.2 %
The Hythe Vail344 $529.96 $484.14 9.5 %57.9 %63.6 %(5.7)%$306.70 $307.95 (0.4)%$450.55 $455.06 (1.0)%
The Landing Lake Tahoe Resort & Spa82 $357.07 $349.50 2.2 %54.2 %55.8 %(1.6)%$193.41 $194.98 (0.8)%$366.50 $366.58 — %
The Lindy Renaissance Charleston Hotel167 $364.41 $355.33 2.6 %89.4 %90.3 %(0.9)%$325.83 $320.80 1.6 %$410.87 $394.85 4.1 %
The Lodge at Sonoma Resort182 $400.40 $387.62 3.3 %67.5 %58.9 %8.6 %$270.37 $228.16 18.5 %$445.58 $384.69 15.8 %
Tranquility Bay Beachfront Resort103 $668.29 $704.50 (5.1)%79.8 %77.6 %2.2 %$533.61 $546.47 (2.4)%$678.94 $696.18 (2.5)%
Westin Boston Waterfront793 $271.43 $252.99 7.3 %82.2 %83.9 %(1.7)%$223.20 $212.21 5.2 %$354.08 $352.36 0.5 %
Westin Fort Lauderdale Beach Resort432 $291.78 $290.74 0.4 %81.7 %84.2 %(2.5)%$238.29 $244.94 (2.7)%$495.17 $514.78 (3.8)%
Westin San Diego Bayview436 $235.97 $228.13 3.4 %79.7 %68.3 %11.4 %$188.08 $155.87 20.7 %$259.04 $207.27 25.0 %
Westin Washington D.C. City Center 410 $254.66 $188.28 35.3 %45.4 %60.7 %(15.3)%$115.57 $114.25 1.2 %$153.18 $146.08 4.9 %
Worthington Renaissance Fort Worth Hotel504 $207.93 $213.47 (2.6)%75.5 %73.3 %2.2 %$157.01 $156.46 0.4 %$294.60 $291.66 1.0 %
Comparable Total (2)
9,595 $287.24 $282.04 1.8 %72.0 %72.6 %(0.6)%$206.69 $204.67 1.0 %$320.95 $316.69 1.3 %
(1) Hotel was acquired on November 12, 2024. Amounts reflect the pre-acquisition operating results of the period from January 1, 2024 to June 30, 2024.
(2) Amounts include the pre-acquisition operating results of the AC Minneapolis Downtown acquired in 2024 and exclude the Westin Washington D.C. City Center which was sold in 2025.
15


Hotel Adjusted EBITDA Reconciliation - Second Quarter 2025
Net Income / (Loss)Plus:Plus:Plus:Equals: Hotel Adjusted EBITDA
Total RevenuesDepreciationInterest Expense
Adjustments (1)
AC Hotel Minneapolis Downtown$2,746 $555 $298 $— $— $853 
Atlanta Marriott Alpharetta$4,343 $1,270 $378 $— $— $1,648 
Bourbon Orleans Hotel $4,301 $508 $1,109 $— $3 $1,620 
Cavallo Point, The Lodge at the Golden Gate $12,513 $2,266 $1,483 $— $94 $3,843 
Chicago Marriott Downtown Magnificent Mile$37,909 $8,420 $3,048 $6 $(397)$11,077 
Chico Hot Springs Resort & Day Spa$3,681 $335 $441 $— $— $776 
Courtyard Denver Downtown$3,480 $1,154 $386 $— $— $1,540 
Courtyard New York Manhattan/Fifth Avenue$5,720 $952 $344 $282 $204 $1,782 
Courtyard New York Manhattan/Midtown East$9,760 $2,773 $536 $— $— $3,309 
Embassy Suites by Hilton Bethesda$4,120 $(988)$482 $— $1,440 $934 
Havana Cabana Key West $2,929 $523 $235 $— $— $758 
Henderson Beach Resort $14,895 $4,032 $1,112 $— $— $5,144 
Henderson Park Inn $3,082 $1,427 $273 $— $— $1,700 
Hilton Garden Inn New York/Times Square Central$8,258 $1,972 $778 $— $— $2,750 
Hotel Champlain Burlington $5,362 $300 $782 $— $— $1,082 
Hotel Clio$8,328 $946 $848 $600 $5 $2,399 
Hotel Emblem San Francisco$1,423 $(189)$292 $— $— $103 
Kimpton Hotel Palomar Phoenix$5,621 $454 $509 $— $190 $1,153 
Kimpton Shorebreak Fort Lauderdale Beach Resort$2,546 $(71)$371 $— $— $300 
Kimpton Shorebreak Huntington Beach Resort $5,478 $1,632 $338 $— $— $1,970 
L'Auberge de Sedona $9,480 $3,051 $420 $— $— $3,471 
Lake Austin Spa Resort$6,104 $1,348 $719 $— $— $2,067 
Margaritaville Beach House Key West $7,633 $2,478 $760 $— $— $3,238 
Orchards Inn Sedona $1,127 $(629)$344 $— $42 $(243)
Salt Lake City Marriott Downtown at City Creek$9,680 $2,690 $1,062 $— $11 $3,763 
The Dagny Boston$11,660 $3,377 $1,566 $— $— $4,943 
The Gwen $12,108 $3,058 $757 $— $— $3,815 
The Hythe Vail $6,013 $(1,355)$1,149 $— $— $(206)
The Landing Lake Tahoe Resort & Spa $3,278 $558 $315 $— $— $873 
The Lindy Renaissance Charleston Hotel $7,049 $3,167 $368 $— $— $3,535 
The Lodge at Sonoma Resort $8,812 $2,781 $478 $— $— $3,259 
Tranquility Bay Beachfront Resort $5,897 $1,519 $466 $— $— $1,985 
Westin Boston Seaport District$29,726 $5,158 $2,303 $1,884 $(122)$9,223 
Westin Fort Lauderdale Beach Resort $16,484 $2,172 $1,113 $— $— $3,285 
Westin San Diego Bayview$10,600 $1,818 $1,349 $— $— $3,167 
Worthington Renaissance Fort Worth Hotel$13,574 $3,258 $944 $263 $— $4,465 
Total$305,720 $62,720 $28,156 $3,035 $1,470 $95,360 

(1) Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization of intangible assets and liabilities.
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Hotel Adjusted EBITDA Reconciliation - Second Quarter 2024
Net Income / (Loss)Plus:Plus:Plus:Equals: Hotel
Total RevenuesDepreciationInterest Expense
Adjustments (1)
Adjusted EBITDA
Atlanta Marriott Alpharetta$4,577 $1,360 $347 $— $— $1,707 
Bourbon Orleans Hotel$4,828 $1,135 $883 $— $3 $2,021 
Cavallo Point, The Lodge at the Golden Gate $12,647 $2,241 $1,409 $— $94 $3,744 
Chicago Marriott Downtown Magnificent Mile$33,458 $8,301 $3,058 $6 $(397)$10,968 
Chico Hot Springs Resort & Day Spa$3,657 $58 $396 $— $2 $456 
Courtyard Denver Downtown$3,297 $1,175 $331 $— $— $1,506 
Courtyard New York Manhattan/Fifth Avenue$4,962 $378 $324 $— $253 $955 
Courtyard New York Manhattan/Midtown East$10,186 $2,305 $490 $870 $— $3,665 
Embassy Suites by Hilton Bethesda$4,430 $(930)$638 $— $1,454 $1,162 
Havana Cabana Key West $3,172 $548 $444 $— $— $992 
Henderson Beach Resort$15,016 $3,854 $1,091 $— $— $4,945 
Henderson Park Inn$3,029 $1,345 $268 $— $— $1,613 
Hilton Garden Inn New York/Times Square Central$7,295 $1,517 $650 $— $— $2,167 
Hotel Champlain Burlington $5,710 $604 $621 $— $— $1,225 
Hotel Clio$8,373 $1,472 $799 $618 $5 $2,894 
Hotel Emblem San Francisco$1,247 $(313)$313 $— $— $— 
Kimpton Hotel Palomar Phoenix$5,997 $660 $464 $— $193 $1,317 
Kimpton Shorebreak Fort Lauderdale Beach Resort$2,335 $(311)$351 $— $— $40 
Kimpton Shorebreak Huntington Beach Resort $5,748 $1,884 $342 $— $— $2,226 
L'Auberge de Sedona $9,826 $3,194 $346 $— $— $3,540 
Lake Austin Spa Resort$6,280 $1,384 $701 $— $— $2,085 
Margaritaville Beach House Key West $7,805 $2,621 $535 $— $— $3,156 
Orchards Inn Sedona $2,580 $693 $90 $— $42 $825 
Salt Lake City Marriott Downtown at City Creek$9,024 $2,570 $965 $— $28 $3,563 
The Dagny Boston$10,934 $2,820 $1,656 $— $— $4,476 
The Gwen$11,467 $2,926 $782 $— $— $3,708 
The Hythe Vail $7,994 $196 $1,172 $— $— $1,368 
The Landing Lake Tahoe Resort & Spa $3,312 $656 $220 $— $— $876 
The Lindy Renaissance Charleston Hotel $6,726 $2,977 $388 $— $— $3,365 
The Lodge at Sonoma Resort $8,205 $2,374 $505 $— $— $2,879 
Tranquility Bay Beachfront Resort$5,892 $1,521 $453 $— $— $1,974 
Westin Boston Seaport District$29,752 $5,087 $2,435 $1,940 $(122)$9,340 
Westin Fort Lauderdale Beach Resort $16,544 $2,763 $1,053 $— $— $3,816 
Westin San Diego Bayview$8,770 $1,283 $1,331 $— $— $2,614 
Westin Washington D.C. City Center$10,029 $2,184 $1,148 $— $— $3,332 
Worthington Renaissance Fort Worth Hotel$14,176 $3,396 $874 $698 $— $4,968 
Total $309,280 $65,928 $27,873 $4,132 $1,555 $99,488 
Add: Prior Ownership Results (2)
$2,966 $725 $325 $— $— $1,050 
Less: Sold Hotel (3)
$(10,029)$(2,184)$(1,148)$— $— $(3,332)
Comparable Total$302,217 $64,469 $27,050 $4,132 $1,555 $97,206 
(1) Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization of intangible assets and liabilities.
(2) Represents the pre-acquisition operating results of the AC Minneapolis Downtown acquired in 2024.
(3) Represents the operating results of the Westin Washington D.C. City Center sold in 2025.
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Hotel Adjusted EBITDA Reconciliation - Year to Date 2025
Total RevenuesNet Income / (Loss)Plus: DepreciationPlus: Interest Expense
Plus: Adjustments (1)
Equals: Hotel Adjusted EBITDA
AC Hotel Minneapolis Downtown$4,151 $192 $595 $— $— $787 
Atlanta Marriott Alpharetta$9,131 $2,875 $741 $— $— $3,616 
Bourbon Orleans Hotel$9,493 $1,877 $2,166 $— $6 $4,049 
Cavallo Point, The Lodge at the Golden Gate $22,198 $1,999 $2,939 $— $187 $5,125 
Chicago Marriott Downtown Magnificent Mile$55,025 $5,402 $6,158 $12 $(795)$10,777 
Chico Hot Springs Resort & Day Spa$6,981 $99 $871 $— $— $970 
Courtyard Denver Downtown$5,621 $1,285 $769 $— $— $2,054 
Courtyard New York Manhattan/Fifth Avenue$9,403 $308 $686 $567 $404 $1,965 
Courtyard New York Manhattan/Midtown East$16,401 $3,055 $1,066 $— $— $4,121 
Embassy Suites by Hilton Bethesda$6,705 $(2,959)$1,028 $— $2,890 $959 
Havana Cabana Key West$6,931 $1,886 $548 $— $— $2,434 
Henderson Beach Resort$21,486 $3,098 $2,222 $— $— $5,320 
Henderson Park Inn$4,345 $1,394 $551 $— $— $1,945 
Hilton Garden Inn New York/Times Square Central$12,318 $886 $1,436 $— $— $2,322 
Hotel Champlain Burlington$8,315 $(919)$1,562 $— $— $643 
Hotel Clio$14,320 $244 $1,702 $1,200 $10 $3,156 
Hotel Emblem San Francisco$2,937 $(245)$586 $— $— $341 
Kimpton Hotel Palomar Phoenix$13,033 $2,410 $1,016 $— $383 $3,809 
Kimpton Shorebreak Fort Lauderdale Beach Resort$6,192 $625 $740 $— $— $1,365 
Kimpton Shorebreak Huntington Beach Resort$10,228 $2,465 $680 $— $— $3,145 
L'Auberge de Sedona $17,135 $4,981 $831 $— $— $5,812 
Lake Austin Spa Resort$10,570 $1,629 $1,435 $— $— $3,064 
Margaritaville Beach House Key West$17,124 $6,430 $1,520 $— $— $7,950 
Orchards Inn Sedona$1,901 $(1,088)$439 $— $84 $(565)
Salt Lake City Marriott Downtown at City Creek$18,734 $5,264 $2,110 $— $21 $7,395 
The Dagny Boston$18,338 $2,391 $3,126 $— $— $5,517 
The Gwen$18,221 $1,433 $1,511 $— $— $2,944 
The Hythe Vail$28,208 $9,245 $2,310 $— $— $11,555 
The Landing Lake Tahoe Resort & Spa$5,440 $446 $634 $— $— $1,080 
The Lindy Renaissance Charleston Hotel$12,419 $5,091 $731 $— $— $5,822 
The Lodge at Sonoma Resort$14,678 $3,217 $971 $— $— $4,188 
Tranquility Bay Beachfront Resort$12,657 $3,453 $934 $— $— $4,387 
Westin Boston Seaport District$50,822 $3,990 $4,604 $3,761 $(245)$12,110 
Westin Fort Lauderdale Beach Resort$38,718 $9,501 $2,227 $— $— $11,728 
Westin San Diego Bayview$20,442 $3,435 $2,698 $— $— $6,133 
Westin Washington D.C. City Center$3,077 $331 $— $— $— $331 
Worthington Renaissance Fort Worth Hotel$26,875 $5,862 $1,905 $940 $— $8,707 
Total $560,573 $91,588 $56,048 $6,480 $2,945 $157,024 
Less: Sold Hotel (2)
$(3,077)$(331)$— $— $— $(331)
Comparable Total$557,496 $91,257 $56,048 $6,480 $2,945 $156,693 
(1) Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization of intangible assets and liabilities.
(2) Represents the operating results of the Westin Washington D.C. City Center sold in 2025.
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Hotel Adjusted EBITDA Reconciliation - Year to Date 2024
Net Income /(Loss)Plus:Plus:Plus:Equals: Hotel
Total RevenuesDepreciationInterest Expense
Adjustments (1)
Adjusted EBITDA
Atlanta Marriott Alpharetta$8,764 $2,450 $722 $— $— $3,172 
Bourbon Orleans Hotel$9,819 $2,450 $1,757 $— $(26)$4,181 
Cavallo Point, The Lodge at the Golden Gate $22,493 $2,176 $2,870 $— $187 $5,233 
Chicago Marriott Downtown Magnificent Mile$52,744 $6,724 $6,473 $12 $(795)$12,414 
Chico Hot Springs Resort & Day Spa$6,985 $(199)$783 $— $3 $587 
Courtyard Denver Downtown$5,284 $1,342 $711 $— $— $2,053 
Courtyard New York Manhattan/Fifth Avenue$8,263 $(562)$683 $— $507 $628 
Courtyard New York Manhattan/Midtown East$17,114 $1,736 $1,016 $1,746 $— $4,498 
Embassy Suites by Hilton Bethesda$7,070 $(2,965)$1,213 $— $2,918 $1,166 
Havana Cabana Key West$7,306 $2,012 $742 $— $— $2,754 
Henderson Beach Resort$21,735 $2,897 $2,153 $— $— $5,050 
Henderson Park Inn$4,307 $1,228 $542 $— $— $1,770 
Hilton Garden Inn New York/Times Square Central$12,241 $981 $1,300 $— $— $2,281 
Hotel Champlain Burlington$8,386 $(207)$1,195 $— $— $988 
Hotel Clio$13,801 $438 $1,644 $1,239 $10 $3,331 
Hotel Emblem San Francisco$2,873 $(350)$615 $— $— $265 
Kimpton Hotel Palomar Phoenix$13,727 $2,907 $965 $— $392 $4,264 
Kimpton Shorebreak Fort Lauderdale Beach Resort$5,633 $175 $708 $— $— $883 
Kimpton Shorebreak Huntington Beach Resort$10,754 $2,864 $722 $— $— $3,586 
L'Auberge de Sedona $17,165 $4,821 $732 $— $— $5,553 
Lake Austin Spa Resort$11,117 $1,696 $1,382 $— $— $3,078 
Margaritaville Beach House Key West$17,912 $6,821 $1,301 $— $— $8,122 
Orchards Inn Sedona$4,611 $1,108 $177 $— $84 $1,369 
Salt Lake City Marriott Downtown at City Creek$17,426 $4,726 $1,883 $— $38 $6,647 
The Dagny Boston$17,359 $1,704 $3,186 $— $— $4,890 
The Gwen $16,940 $1,060 $1,730 $— $— $2,790 
The Hythe Vail$28,490 $9,705 $2,353 $— $— $12,058 
The Landing Lake Tahoe Resort & Spa$5,471 $542 $439 $— $— $981 
The Lindy Renaissance Charleston Hotel$12,001 $4,678 $781 $— $— $5,459 
The Lodge at Sonoma Resort$12,742 $1,735 $1,123 $— $— $2,858 
Tranquility Bay Beachfront Resort$13,051 $3,459 $905 $— $— $4,364 
Westin Boston Seaport District$50,856 $3,886 $4,924 $3,893 $(245)$12,458 
Westin Fort Lauderdale Beach Resort$40,568 $11,024 $2,136 $— $— $13,160 
Westin San Diego Bayview$16,447 $2,085 $2,399 $— $— $4,484 
Westin Washington D.C. City Center$17,495 $2,538 $2,196 $— $— $4,734 
Worthington Renaissance Fort Worth Hotel$26,753 $5,570 $1,725 $1,400 $— $8,695 
Total $565,703 $93,255 $56,186 $8,290 $3,073 $160,902 
Add: Prior Ownership Results (2)
$4,500 $437 $648 $— $— $1,085 
Less: Sold Hotel (3)
$(17,495)$(2,538)$(2,196)$— $— $(4,734)
Comparable Total$552,708 $91,154 $54,638 $8,290 $3,073 $157,253 
(1) Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization of intangible assets and liabilities.
(2) Represents the pre-acquisition operating results of the AC Minneapolis Downtown acquired in 2024.
(3) Represents the operating results of the Westin Washington D.C. City Center sold in 2025.
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