EX-99.2 3 sho-20221108xex99d2.htm EX-99.2

Exhibit 99.2


Supplemental Financial Information For the quarter ended September 30, 2022 November 8, 2022

Supplemental Financial Information
November 8, 2022

Table of Contents


Corporate Profile And Disclosures Regarding Non-GAAP Financial Measures								2
Pro Forma Corporate Financial Information								7
Capitalization								21
Property-Level Data And Operating Statistics								24
Property-Level Revenues, Adjusted EBITDAre & Adjusted EBITDAre Margins								30


	Supplemental Financial Information November 8, 2022

CORPORATE PROFILE AND DISCLOSURES
REGARDING NON-GAAP FINANCIAL MEASURES


CORPORATE PROFILE AND DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES								Page 2


	Supplemental Financial Information November 8, 2022

About Sunstone

Sunstone Hotel Investors, Inc. (the “Company,” “we,” and “our”) (NYSE: SHO) is a lodging real estate investment trust (“REIT”) that as of November 8, 2022 owns 15 hotels comprised of 7,735 rooms, the majority of which are operated under nationally recognized brands. Sunstone’s strategy is to create long-term stakeholder value through the acquisition, active ownership and disposition of hotels considered to be Long-Term Relevant Real Estate®.

This presentation contains unaudited information, and should be read together with the consolidated financial statements and notes thereto included in our most recent reports on Form 10-K and Form 10-Q. Copies of these reports are available on our website at www.sunstonehotels.com and through the SEC’s Electronic Data Gathering Analysis and Retrieval System (“EDGAR”) at www.sec.gov.

Corporate Headquarters
200 Spectrum Center Drive, 21^st Floor
Irvine, CA 92618
(949) 330-4000

Company Contacts
Bryan Giglia
Chief Executive Officer
(949) 382-3036

Aaron Reyes
Chief Financial Officer
(949) 382-3018


CORPORATE PROFILE AND DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES								Page 3


	Supplemental Financial Information November 8, 2022

Non-GAAP Financial Measures

We present the following non-GAAP financial measures that we believe are useful to investors as key supplemental measures of our operating performance: earnings before interest expense, taxes, depreciation and amortization for real estate, or EBITDAre; Adjusted EBITDAre, excluding noncontrolling interest (as defined below); funds from operations attributable to common stockholders, or FFO attributable to common stockholders; Adjusted FFO attributable to common stockholders (as defined below); hotel Adjusted EBITDAre; and hotel Adjusted EBITDAre margins. These measures should not be considered in isolation or as a substitute for measures of performance in accordance with GAAP. In addition, our calculation of these measures may not be comparable to other companies that do not define such terms exactly the same as the Company. These non-GAAP measures are used in addition to and in conjunction with results presented in accordance with GAAP. They should not be considered as alternatives to net income (loss), cash flow from operations, or any other operating performance measure prescribed by GAAP. These non-GAAP financial measures reflect additional ways of viewing our operations that we believe, when viewed with our GAAP results and the reconciliations to the corresponding 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.

We present EBITDAre in accordance with guidelines established by the National Association of Real Estate Investment Trusts (“NAREIT”), as defined in its September 2017 white paper “Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate.” We believe EBITDAre is a useful performance measure to help investors evaluate and compare the results of our operations from period to period in comparison to our peers. NAREIT defines EBITDAre as net income (calculated in accordance with GAAP) plus interest expense, income tax expense, depreciation and amortization, gains or losses on the disposition of depreciated property (including gains or losses on change in control), impairment write-downs of depreciated property and of investments in unconsolidated affiliates caused by a decrease in the value of depreciated property in the affiliate, and adjustments to reflect the entity’s share of EBITDAre of unconsolidated affiliates.

We make additional adjustments to EBITDAre when evaluating our performance because we believe that the exclusion of certain additional items described below provides useful information to investors regarding our operating performance, and that the presentation of Adjusted EBITDAre, excluding noncontrolling interest, when combined with the primary GAAP presentation of net income, is beneficial to an investor’s complete understanding of our operating performance. In addition, we use both EBITDAre and Adjusted EBITDAre, excluding noncontrolling interest as measures in determining the value of hotel acquisitions and dispositions.

We believe that the presentation of FFO attributable to common stockholders provides useful information to investors regarding our operating performance because it is a measure of our operations without regard to specified noncash items such as real estate depreciation and amortization, any real estate impairment loss and any gain or loss on sale of real estate assets, all of which are based on historical cost accounting and may be of lesser significance in evaluating our current performance. Our presentation of FFO attributable to common stockholders conforms to NAREIT’s definition of “FFO applicable to common shares.” Our presentation may not be comparable to FFO reported by other REITs that do not define the terms in accordance with the current NAREIT definition, or that interpret the current NAREIT definition differently that we do.

We also present Adjusted FFO attributable to common stockholders when evaluating our operating 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 may facilitate comparisons of operating performance between periods and our peer companies.


CORPORATE PROFILE AND DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES								Page 4


	Supplemental Financial Information November 8, 2022

We adjust EBITDAre and FFO attributable to common stockholders for the following items, which may occur in any period, and refer to these measures as either Adjusted EBITDAre, excluding noncontrolling interest or Adjusted FFO attributable to common stockholders:

●

Amortization of deferred stock compensation: we exclude the noncash expense incurred with the amortization of deferred stock compensation as this expense is based on historical stock prices at the date of grant to our corporate employees and does not reflect the underlying performance of our hotels.

●

Amortization of contract intangibles: we exclude the noncash amortization of any favorable or unfavorable contract intangibles recorded in conjunction with our hotel acquisitions. We exclude the noncash amortization of contract intangibles because it is based on historical cost accounting and is of lesser significance in evaluating our actual performance for the current period.

●

Gains or losses from debt transactions: we exclude the effect of finance charges and premiums associated with the extinguishment of debt, including the acceleration of deferred financing costs from the original issuance of the debt being redeemed or retired because, like interest expense, their removal helps investors evaluate and compare the results of our operations from period to period by removing the impact of our capital structure.

●

Acquisition costs: under GAAP, costs associated with acquisitions that meet the definition of a business are expensed in the year incurred. We exclude the effect of these costs because we believe they are not reflective of the ongoing performance of the Company or our hotels.

●

Cumulative effect of a change in accounting principle: from time to time, the FASB promulgates new accounting standards that require the consolidated statement of operations to reflect the cumulative effect of a change in accounting principle. We exclude these one-time adjustments, which include the accounting impact from prior periods, because they do not reflect our actual performance for that period.

●

Other adjustments: we exclude other adjustments that we believe are outside the ordinary course of business because we do not believe these costs reflect our actual performance for the period and/or the ongoing operations of our hotels. Such items may include: lawsuit settlement costs; prior year property tax assessments or credits; the write-off of development costs associated with abandoned projects; property-level restructuring, severance and management transition costs; debt resolution costs; lease terminations; property insurance restoration proceeds or uninsured losses; and other nonrecurring identified adjustments.

In addition, to derive Adjusted EBITDAre, excluding noncontrolling interest we exclude the noncontrolling partner’s pro rata share of the net (income) loss allocated to the Hilton San Diego Bayfront partnership, as well as the noncontrolling partner’s pro rata share of any EBITDAre and Adjusted EBITDAre components (prior to our acquisition of the noncontrolling partner’s ownership interest in the partnership in June 2022). We also exclude the amortization of our right-of-use assets and related lease obligations as these expenses are based on historical cost accounting and do not reflect the actual rent amounts due to the respective lessors or the underlying performance of our hotels. Additionally, we include an adjustment for the cash finance lease expense recorded on the building lease at the Hyatt Centric Chicago Magnificent Mile (prior to the hotel’s sale in February 2022). We determined that the building lease is a finance lease, and, therefore, we include a portion of the lease payment each month in interest expense. We adjust EBITDAre for the finance lease in order to more accurately reflect the actual rent due to the hotel’s lessor in the current period, as well as the operating performance of the hotel. We also exclude the effect of gains and losses on the disposition of undepreciated assets because we believe that including them in Adjusted EBITDAre, excluding noncontrolling interest is not consistent with reflecting the ongoing performance of our assets.


CORPORATE PROFILE AND DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES								Page 5


	Supplemental Financial Information November 8, 2022

To derive Adjusted FFO attributable to common stockholders, we also exclude the noncash interest on our derivatives and finance lease obligation as we believe that these items are not reflective of our ongoing finance costs. Additionally, we exclude the noncontrolling partner’s pro rata share of any FFO adjustments related to our consolidated Hilton San Diego Bayfront partnership components (prior to our acquisition of the noncontrolling partner’s ownership interest in the partnership in June 2022). We also exclude the real estate amortization of our right-of-use assets and related lease obligations, which includes the amortization of both our finance and operating lease intangibles (with the exception of our corporate operating lease), as these expenses are based on historical cost accounting and do not reflect the actual rent amounts due to the respective lessors or the underlying performance of our hotels. In addition, we exclude preferred stock redemption charges, changes to deferred tax assets, liabilities or valuation allowances, and income tax benefits or provisions associated with the application of net operating loss carryforwards, uncertain tax positions or with the sale of assets other than real estate investments.

In presenting hotel Adjusted EBITDAre and hotel Adjusted EBITDAre margins, miscellaneous non-hotel items have been excluded. We believe the calculation of hotel Adjusted EBITDAre results in a more accurate presentation of the hotel Adjusted EBITDAre margins for our hotels, and that these non-GAAP financial measures are useful to investors in evaluating our property-level operating performance.

Reconciliations of net income (loss) to EBITDAre, Adjusted EBITDAre, excluding noncontrolling interest, FFO attributable to common stockholders, Adjusted FFO attributable to common stockholders, hotel Adjusted EBITDAre and hotel Adjusted EBITDAre margins are set forth in the following pages of this supplemental package. Beginning with the quarter ended March 31, 2022, the Company’s calculation of Adjusted FFO attributable to common stockholders excludes the noncash amortization expense associated with deferred stock compensation. Adjusted FFO attributable to common stockholders for the prior periods presented in this supplemental package have also been adjusted to exclude this expense.

The Total Portfolio consists of all 15 hotels owned by the Company as of September 30, 2022. The Total Portfolio includes both prior ownership results and the Company’s ownership results for The Confidante Miami Beach, acquired by the Company in June 2022. Total Portfolio operating statistics for the first nine months of 2021 include both prior ownership results and the Company’s ownership results for the Montage Healdsburg, acquired in April 2021. The Company obtained prior ownership information from the previous owners of The Confidante Miami Beach and the Montage Healdsburg during the due diligence periods before acquiring the hotels. The Company performed limited reviews of the information as part of its analyses of the acquisitions.

The Comparable Portfolio includes the same 12 hotels owned by the Company during the third quarters and first nine months of 2022, 2021 and 2019 plus both prior ownership results and the Company’s ownership results for The Confidante Miami Beach, acquired by the Company in June 2022.


CORPORATE PROFILE AND DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES								Page 6


	Supplemental Financial Information November 8, 2022

PRO FORMA CORPORATE FINANCIAL INFORMATION


PRO FORMA CORPORATE FINANCIAL INFORMATION								Page 7


	Supplemental Financial Information November 8, 2022

Pro Forma Consolidated Statements of Operations

Q3 2022 – Q4 2021, Trailing 12 Months


	Quarter Ended (1)								Trailing 12 Months
(Unaudited and in thousands, except per share data)	September 30,		June 30,		March 31,		December 31,		Ended
	2022		2022		2022		2021		September 30, 2022 (1)
Revenues
Room	$	158,400	$	167,194	$	115,515	$	109,660	$	550,769
Food and beverage		63,476		74,307		42,911		37,133		217,827
Other operating		22,438		18,711		24,360		20,838		86,347
Total revenues		244,314		260,212		182,786		167,631		854,943

Operating Expenses
Room		38,791		38,626		30,425		29,615		137,457
Food and beverage		47,181		48,304		34,233		31,334		161,052
Other expenses		88,746		87,269		75,023		69,235		320,273
Corporate overhead		7,879		8,717		10,714		8,203		35,513
Depreciation and amortization		31,750		31,720		31,711		30,766		125,947
Impairment loss		—		—		—		1,671		1,671
Total operating expenses		214,347		214,636		182,106		170,824		781,913

Interest and other income		270		116		4,380		13		4,779
Interest expense		(9,269)		(5,938)		(4,964)		(6,440)		(26,611)
(Loss) gain on extinguishment of debt, net		(770)		21		(213)		(292)		(1,254)
Income (loss) before income taxes		20,198		39,775		(117)		(9,912)		49,944
Income tax benefit (provision), net		290		(28)		(136)		(18)		108
Net income (loss)	$	20,488	$	39,747	$	(253)	$	(9,930)	$	50,052

Total Portfolio Hotel Adjusted EBITDAre (2)	$	69,422	$	87,308	$	42,687	$	38,050	$	237,467

Pro Forma Adjusted EBITDAre (3)	$	63,848	$	80,031	$	37,103	$	34,287	$	215,269

Pro Forma Adjusted FFO attributable to common stockholders (4)	$	51,264	$	69,051	$	26,183	$	23,074	$	169,572

Pro Forma Adjusted FFO attributable to common stockholders per diluted share (4)	$	0.24	$	0.33	$	0.12	$	0.11	$	0.80

*Footnotes on page 11


PRO FORMA CORPORATE FINANCIAL INFORMATION								Page 8


	Supplemental Financial Information November 8, 2022

Pro Forma Consolidated Statements of Operations

Q4 2021 – Q1 2021, FY 2021


	Quarter Ended (1)								Year Ended (1)
(Unaudited and in thousands, except per share data)	December 31,		September 30,		June 30,		March 31,		December 31,
	2021		2021		2021		2021		2021
Revenues
Room	$	109,660	$	105,973	$	82,045	$	36,080	$	333,758
Food and beverage		37,133		27,739		17,020		6,659		88,551
Other operating		20,838		20,904		17,162		11,808		70,712
Total revenues		167,631		154,616		116,227		54,547		493,021

Operating Expenses
Room		29,615		28,216		21,668		11,591		91,090
Food and beverage		31,334		25,975		17,160		7,430		81,899
Other expenses		69,235		65,033		51,374		38,142		223,784
Corporate overhead		8,203		15,422		9,467		7,177		40,269
Depreciation and amortization		30,766		30,196		30,285		28,183		119,430
Impairment losses		1,671		1,014		—		—		2,685
Total operating expenses		170,824		165,856		129,954		92,523		559,157

Interest and other income (loss)		13		2		21		(379)		(343)
Interest expense		(6,440)		(7,019)		(7,100)		(6,693)		(27,252)
(Loss) gain on extinguishment of debt, net		(292)		61		88		222		79
Loss before income taxes		(9,912)		(18,196)		(20,718)		(44,826)		(93,652)
Income tax provision, net		(18)		(25)		(23)		(43)		(109)
Net loss	$	(9,930)	$	(18,221)	$	(20,741)	$	(44,869)	$	(93,761)

Total Portfolio Hotel Adjusted EBITDAre (2)	$	38,050	$	35,766	$	21,533	$	(7,911)	$	87,438

Pro Forma Adjusted EBITDAre (3)	$	34,287	$	33,090	$	19,886	$	(8,513)	$	78,750

Pro Forma Adjusted FFO attributable to common stockholders (4)	$	23,074	$	21,876	$	8,366	$	(19,515)	$	33,801

Pro Forma Adjusted FFO attributable to common stockholders per diluted share (4)	$	0.11	$	0.10	$	0.04	$	(0.09)	$	0.16

*Footnotes on page 11


PRO FORMA CORPORATE FINANCIAL INFORMATION								Page 9


	Supplemental Financial Information November 8, 2022

Pro Forma Consolidated Statements of Operations

Q4 2019 – Q1 2019, FY 2019


	Quarter Ended (1)								Year Ended (1)
(Unaudited and in thousands, except per share data)	December 31,		September 30,		June 30,		March 31,		December 31,
	2019		2019		2019		2019		2019
Revenues
Room	$	140,388	$	145,477	$	154,320	$	140,689	$	580,874
Food and beverage		59,112		53,525		67,089		63,338		243,064
Other operating		17,415		17,523		16,271		15,124		66,333
Total revenues		216,915		216,525		237,680		219,151		890,271

Operating Expenses
Room		36,422		37,604		37,604		35,979		147,609
Food and beverage		40,345		38,763		42,286		41,704		163,098
Other expenses		73,100		71,415		73,549		73,328		291,392
Corporate overhead		7,275		7,395		8,078		7,516		30,264
Depreciation and amortization		28,231		28,315		27,684		27,541		111,771
Total operating expenses		185,373		183,492		189,201		186,068		744,134

Interest and other income		3,060		3,762		4,811		4,924		16,557
Interest expense		(6,880)		(9,074)		(11,634)		(10,149)		(37,737)
Income before income taxes		27,722		27,721		41,656		27,858		124,957
Income tax (provision) benefit, net		(1,034)		749		(2,676)		3,112		151
Net income	$	26,688	$	28,470	$	38,980	$	30,970	$	125,108

Comparable Portfolio Hotel Adjusted EBITDAre (5)	$	67,146	$	68,778	$	84,305	$	68,415	$	288,644

Pro Forma Adjusted EBITDAre (3)	$	64,653	$	66,936	$	82,652	$	67,767	$	282,008

Pro Forma Adjusted FFO attributable to common stockholders (4)	$	53,324	$	56,618	$	71,082	$	55,805	$	236,829

Pro Forma Adjusted FFO attributable to common stockholders per diluted share (4)	$	0.25	$	0.27	$	0.34	$	0.27	$	1.13

*Footnotes on page 11


PRO FORMA CORPORATE FINANCIAL INFORMATION									Page 10


	Supplemental Financial Information November 8, 2022

Pro Forma Consolidated Statements of Operations

Footnotes

(1)

Excludes results for the Renaissance Westchester, the Embassy Suites La Jolla and the Hyatt Centric Chicago Magnificent Mile due to their sales in October 2021, December 2021 and February 2022, respectively, along with the Embassy Suites Chicago and the Hilton Garden Inn Chicago Downtown/Magnificent Mile due to their sale in March 2022. Includes prior ownership results for The Confidante Miami Beach acquired by the Company in June 2022, adjusted for the Company's pro forma depreciation expense. Pro Forma Consolidated Statements of Operations for each of the quarters and the year ended December 31, 2019 also excludes results for the Courtyard by Marriott Los Angeles, the Renaissance Harborplace and the Renaissance Los Angeles Airport due to their sales in October 2019, July 2020 and December 2020, respectively, as well as results for the Hilton Times Square due to the assignment-in-lieu agreement executed in December 2020 between the Company and the hotel’s mortgage holder which transferred the Company’s leasehold interest in the hotel to the mortgage holder, and the elimination of interest expense on the mortgage loan secured by the Renaissance Washington DC due to its repayment in December 2020.

(2)	Total Portfolio Hotel Adjusted EBITDAre reconciliations for the third quarters and first nine months of 2022 and 2021 can be found later in this presentation. Additional details can be found in our earnings release, furnished in Exhibit 99.1 to our 8-K filed on November 8, 2022.

(3)

Pro Forma Adjusted EBITDAre reconciliations for each of the quarters, years and the Trailing 12 Months included in this presentation can be found in the following pages and reflect the adjustments noted in Footnote 1 above, along with the elimination of noncontrolling interest due to the Company's acquisition of the outside 25% ownership interest in the joint venture that owned the Hilton San Diego Bayfront in June 2022.

(4)

Pro Forma Adjusted FFO attributable to common stockholders and Pro Forma Adjusted FFO attributable to common stockholders per diluted share reconciliations for each of the quarters, years and the Trailing 12 Months included in this presentation can be found in the following pages and reflect the adjustments noted in Footnotes 1 and 3 above, along with repurchases totaling 3,783,936 shares of common stock in the second, third and fourth quarters of 2019, 9,770,081 shares of common stock in the first quarter of 2020 and 7,995,560 shares of common stock in the first, second and third quarters of 2022, partially offset by issuances totaling 2,913,682 shares of common stock in the second quarter of 2021.

(5)	Comparable Portfolio Hotel Adjusted EBITDAre reconciliations for the third quarter and first nine months of 2019 can be found later in this presentation.


PRO FORMA CORPORATE FINANCIAL INFORMATION									Page 11


	Supplemental Financial Information November 8, 2022

Pro Forma Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre

Q3 2022 – Q4 2021, Trailing 12 Months


	Quarter Ended								Trailing 12 Months
	September 30,		June 30,		March 31,		December 31,		Ended
(In thousands)	2022		2022		2022		2021		September 30, 2022

Net income	$	20,488	$	37,692	$	15,123	$	138,324	$	211,627
Operations held for investment:
Depreciation and amortization		31,750		30,893		31,360		32,598		126,601
Interest expense		9,269		5,938		5,081		7,201		27,489
Income tax (benefit) provision, net		(290)		28		136		18		(108)
Gain on sale of assets		—		—		(22,946)		(152,524)		(175,470)
Impairment loss		—		—		—		1,671		1,671
EBITDAre		61,217		74,551		28,754		27,288		191,810

Operations held for investment:
Amortization of deferred stock compensation		2,230		2,853		3,578		2,212		10,873
Amortization of right-of-use assets and obligations		(350)		(354)		(346)		(340)		(1,390)
Amortization of contract intangibles, net		(19)		(18)		(6)		—		(43)
Finance lease obligation interest - cash ground rent		—		—		(117)		(351)		(468)
Property-level severance		—		—		—		(284)		(284)
Loss (gain) on extinguishment of debt, net		770		(21)		213		428		1,390
Lawsuit settlement cost		—		—		—		21		21
CEO transition costs		—		—		—		815		815
Hurricane-related losses net of (insurance restoration proceeds)		—		138		(2,893)		2,612		(143)
Noncontrolling interest:
Income from consolidated joint venture attributable to noncontrolling interest		—		(2,343)		(1,134)		(335)		(3,812)
Depreciation and amortization		—		(666)		(790)		(791)		(2,247)
Interest expense		—		(206)		(168)		(160)		(534)
Amortization of right-of-use asset and obligation		—		60		72		73		205
Lawsuit settlement cost		—		—		—		(5)		(5)
Adjustments to EBITDAre, net		2,631		(557)		(1,591)		3,895		4,378

Adjusted EBITDAre, excluding noncontrolling interest		63,848		73,994		27,163		31,183		196,188
Sold hotel Adjusted EBITDAre (1)		—		—		2,172		(1,434)		738
Acquisition hotel Adjusted EBITDAre (2)		—		6,037		7,768		4,538		18,343

Pro Forma Adjusted EBITDAre	$	63,848	$	80,031	$	37,103	$	34,287	$	215,269

*Footnotes on page 14


PRO FORMA CORPORATE FINANCIAL INFORMATION									Page 12


	Supplemental Financial Information November 8, 2022

Pro Forma Reconciliation of Net Income to FFO and Adjusted FFO Attributable to Common Stockholders

Q3 2022 – Q4 2021, Trailing 12 Months


	Quarter Ended								Trailing 12 Months
	September 30,		June 30,		March 31,		December 31,		Ended
(In thousands, except per share data)	2022		2022		2022		2021		September 30, 2022

Net income	$	20,488	$	37,692	$	15,123	$	138,324	$	211,627
Preferred stock dividends		(3,351)		(3,773)		(3,773)		(3,349)		(14,246)
Operations held for investment:
Real estate depreciation and amortization		31,313		30,456		31,027		31,976		124,772
Gain on sale of assets		—		—		(22,946)		(152,524)		(175,470)
Impairment loss		—		—		—		1,671		1,671
Noncontrolling interest:
Income from consolidated joint venture attributable to noncontrolling interest		—		(2,343)		(1,134)		(335)		(3,812)
Real estate depreciation and amortization		—		(666)		(790)		(791)		(2,247)
FFO attributable to common stockholders		48,450		61,366		17,507		14,972		142,295

Operations held for investment:
Amortization of deferred stock compensation		2,230		2,853		3,578		2,212		10,873
Real estate amortization of right-of-use assets and obligations		(288)		(294)		(286)		87		(781)
Amortization of contract intangibles, net		141		143		60		—		344
Noncash interest on derivatives, net		(39)		(1,023)		(1,842)		(1,211)		(4,115)
Property-level severance		—		—		—		(284)		(284)
Loss (gain) on extinguishment of debt, net		770		(21)		213		428		1,390
Lawsuit settlement cost		—		—		—		21		21
CEO transition costs		—		—		—		815		815
Hurricane-related losses net of (insurance restoration proceeds)		—		138		(2,893)		2,612		(143)
Noncontrolling interest:
Real estate amortization of right-of-use asset and obligation		—		60		72		73		205
Noncash interest on derivatives, net		—		(2)		2		1		1
Lawsuit settlement cost		—		—		—		(5)		(5)
Adjustments to FFO attributable to common stockholders, net		2,814		1,854		(1,096)		4,749		8,321

Adjusted FFO attributable to common stockholders		51,264		63,220		16,411		19,721		150,616
Sold hotel Adjusted FFO (1)		—		—		2,172		(1,024)		1,148
Acquisition hotel Adjusted FFO (2)		—		5,831		7,600		4,377		17,808

Pro Forma Adjusted FFO attributable to common stockholders	$	51,264	$	69,051	$	26,183	$	23,074	$	169,572

Pro Forma Adjusted FFO attributable to common stockholders per diluted share	$	0.24	$	0.33	$	0.12	$	0.11	$	0.80

Basic weighted average shares outstanding		211,010		213,183		217,271		217,870		214,834
Shares associated with unvested restricted stock awards		594		354		305		445		425
Diluted weighted average shares outstanding		211,604		213,537		217,576		218,315		215,258
Equity transactions (3)		(729)		(2,918)		(7,254)		(7,996)		(4,724)
Pro Forma diluted weighted average shares outstanding		210,875		210,619		210,322		210,319		210,534

*Footnotes on page 14


PRO FORMA CORPORATE FINANCIAL INFORMATION									Page 13


	Supplemental Financial Information November 8, 2022

Pro Forma Reconciliation of Net Income to EBITDAre, Adjusted EBITDAre,

FFO and Adjusted FFO Attributable to Common Stockholders

Q3 2022 – Q4 2021, Trailing 12 Months Footnotes

(1)

Sold Hotel Adjusted EBITDAre and Adjusted FFO include results for the Renaissance Westchester, the Embassy Suites La Jolla and the Hyatt Centric Chicago Magnificent Mile sold in October 2021, December 2021 and February 2022, respectively, along with the Embassy Suites Chicago and the Hilton Garden Inn Chicago Downtown/Magnificent Mile sold in March 2022.

(2)

Acquisition hotel Adjusted EBITDAre and Adjusted FFO include prior ownership results for The Confidante Miami Beach acquired by the Company in June 2022, along with the elimination of noncontrolling interest due to the Company's acquisition of the outside 25% ownership interest in the joint venture that owned the Hilton San Diego Bayfront in June 2022.

(3)	Equity Transactions represent repurchases totaling 3,879,025, 3,235,958 and 880,577 shares of common stock in the first, second and third quarters of 2022, respectively.


PRO FORMA CORPORATE FINANCIAL INFORMATION									Page 14


	Supplemental Financial Information November 8, 2022

Pro Forma Reconciliation of Net Income (Loss) to EBITDAre and Adjusted EBITDAre

Q4 2021 – Q1 2021, FY 2021


	Quarter Ended								Year Ended
	December 31,		September 30,		June 30,		March 31,		December 31,
(In thousands)	2021		2021		2021		2021		2021

Net income (loss)	$	138,324	$	(22,124)	$	(27,918)	$	(55,287)	$	32,995
Operations held for investment:
Depreciation and amortization		32,598		32,585		32,729		30,770		128,682
Interest expense		7,201		7,983		8,065		7,649		30,898
Income tax provision, net		18		25		23		43		109
(Gain) loss on sale of assets, net		(152,524)		12		—		70		(152,442)
Impairment losses		1,671		1,014		—		—		2,685
EBITDAre		27,288		19,495		12,899		(16,755)		42,927

Operations held for investment:
Amortization of deferred stock compensation		2,212		3,165		4,659		2,752		12,788
Amortization of right-of-use assets and obligations		(340)		(335)		(338)		(331)		(1,344)
Finance lease obligation interest - cash ground rent		(351)		(351)		(351)		(351)		(1,404)
Property-level severance		(284)		—		—		—		(284)
Property-level severance related to sold hotels		—		4,562		—		—		4,562
Loss (gain) on extinguishment of debt, net		428		(61)		(88)		(222)		57
Prior year property tax adjustments, net		—		605		(1,162)		(827)		(1,384)
Lawsuit settlement cost		21		691		—		—		712
CEO transition costs		815		7,976		—		—		8,791
Hurricane-related losses		2,612		1,621		—		—		4,233
Noncontrolling interest:
(Income) loss from consolidated joint venture attributable to noncontrolling interest		(335)		(933)		596		1,975		1,303
Depreciation and amortization		(791)		(791)		(806)		(810)		(3,198)
Interest expense		(160)		(181)		(159)		(161)		(661)
Amortization of right-of-use asset and obligation		73		72		73		72		290
Lawsuit settlement cost		(5)		(173)		—		—		(178)
Adjustments to EBITDAre, net		3,895		15,867		2,424		2,097		24,283

Adjusted EBITDAre, excluding noncontrolling interest		31,183		35,362		15,323		(14,658)		67,210
Sold hotel Adjusted EBITDAre (1)		(1,434)		(4,742)		2,391		5,751		1,966
Acquisition hotel Adjusted EBITDAre (2)		4,538		2,470		2,172		394		9,574

Pro Forma Adjusted EBITDAre	$	34,287	$	33,090	$	19,886	$	(8,513)	$	78,750

*Footnotes on page 17


PRO FORMA CORPORATE FINANCIAL INFORMATION								Page 15


	Supplemental Financial Information November 8, 2022

Pro Forma Reconciliation of Net Income (Loss) to FFO and Adjusted FFO Attributable to Common Stockholders

Q4 2021 – Q1 2021, FY 2021


	Quarter Ended								Year Ended
	December 31,		September 30,		June 30,		March 31,		December 31,
(In thousands, except per share data)	2021		2021		2021		2021		2021

Net income (loss)	$	138,324	$	(22,124)	$	(27,918)	$	(55,287)	$	32,995
Preferred stock dividends and redemption charges		(3,349)		(6,287)		(7,795)		(3,207)		(20,638)
Operations held for investment:
Real estate depreciation and amortization		31,976		31,959		32,104		30,143		126,182
(Gain) loss on sale of assets, net		(152,524)		12		—		70		(152,442)
Impairment losses		1,671		1,014		—		—		2,685
Noncontrolling interest:
(Income) loss from consolidated joint venture attributable to noncontrolling interest		(335)		(933)		596		1,975		1,303
Real estate depreciation and amortization		(791)		(791)		(806)		(810)		(3,198)
FFO attributable to common stockholders		14,972		2,850		(3,819)		(27,116)		(13,113)

Operations held for investment:
Amortization of deferred stock compensation		2,212		3,165		4,659		2,752		12,788
Real estate amortization of right-of-use assets and obligations		87		87		77		85		336
Noncash interest on derivatives, net		(1,211)		(616)		(709)		(869)		(3,405)
Property-level severance		(284)		—		—		—		(284)
Property-level severance related to sold hotels		—		4,562		—		—		4,562
Loss (gain) on extinguishment of debt, net		428		(61)		(88)		(222)		57
Prior year property tax adjustments, net		—		605		(1,162)		(827)		(1,384)
Lawsuit settlement cost		21		691		—		—		712
Preferred stock redemption charges		—		2,624		4,016		—		6,640
CEO transition costs		815		7,976		—		—		8,791
Hurricane-related losses		2,612		1,621		—		—		4,233
Noncontrolling interest:
Real estate amortization of right-of-use asset and obligation		73		72		73		72		290
Noncash interest on derivatives, net		1		(20)		—		—		(19)
Lawsuit settlement cost		(5)		(173)		—		—		(178)
Adjustments to FFO attributable to common stockholders, net		4,749		20,533		6,866		991		33,139

Adjusted FFO attributable to common stockholders		19,721		23,383		3,047		(26,125)		20,026
Sold hotel Adjusted FFO (1)		(1,024)		(4,129)		3,005		6,356		4,208
Acquisition hotel Adjusted FFO (2)		4,377		2,309		2,013		233		8,932
Equity transactions (3)		—		313		301		21		635

Pro Forma Adjusted FFO attributable to common stockholders	$	23,074	$	21,876	$	8,366	$	(19,515)	$	33,801

Pro Forma Adjusted FFO attributable to common stockholders per diluted share	$	0.11	$	0.10	$	0.04	$	(0.09)	$	0.16

Basic weighted average shares outstanding		217,870		217,709		215,113		214,438		216,296
Shares associated with unvested restricted stock awards		445		296		352		210		326
Diluted weighted average shares outstanding		218,315		218,005		215,465		214,648		216,622
Equity transactions (3)		(7,996)		(7,996)		(5,526)		(5,082)		(6,662)
Pro Forma diluted weighted average shares outstanding		210,319		210,009		209,939		209,566		209,960

*Footnotes on page 17


PRO FORMA CORPORATE FINANCIAL INFORMATION								Page 16


	Supplemental Financial Information November 8, 2022

Pro Forma Reconciliation of Net Income (Loss) to EBITDAre, Adjusted EBITDAre,

FFO and Adjusted FFO Attributable to Common Stockholders

Q4 2021 – Q1 2021, FY 2021 Footnotes

(1)

Sold hotel Adjusted EBITDAre and Adjusted FFO include results for the Renaissance Westchester, the Embassy Suites La Jolla and the Hyatt Centric Chicago Magnificent Mile sold in October 2021, December 2021 and February 2022, respectively, along with the Embassy Suites Chicago and the Hilton Garden Inn Chicago Downtown/Magnificent Mile sold in March 2022.

(2)

(3)

Equity Transactions represent the reduction in preferred stock dividends due to the redemptions of the 6.95% Series E and 6.45% Series F Cumulative Redeemable Preferred Stocks in June 2021 and August 2021, respectively, offset by the issuances of the 6.125% Series H and 5.70% Series I Cumulative Redeemable Preferred Stocks in May 2021 and July 2021, respectively. It also includes issuances totaling 2,913,682 shares of common stock in the second quarter of 2021 and repurchases totaling 7,995,560 shares of common stock in the first, second and third quarters of 2022.


PRO FORMA CORPORATE FINANCIAL INFORMATION								Page 17


	Supplemental Financial Information November 8, 2022

Pro Forma Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre

Q4 2019 – Q1 2019, FY 2019


	Quarter Ended								Year Ended
	December 31,		September 30,		June 30,		March 31,		December 31,
(In thousands)	2019		2019		2019		2019		2019

Net income	$	45,414	$	33,545	$	45,918	$	17,916	$	142,793
Operations held for investment:
Depreciation and amortization		37,264		37,573		36,524		36,387		147,748
Interest expense		10,822		13,259		15,816		14,326		54,223
Income tax provision (benefit), net		1,034		(749)		2,676		(3,112)		(151)
Gain on sale of assets		(42,935)		—		—		—		(42,935)
Impairment loss		24,713		—		—		—		24,713
EBITDAre		76,312		83,628		100,934		65,517		326,391

Operations held for investment:
Amortization of deferred stock compensation		2,145		2,146		2,900		2,122		9,313
Amortization of right-of-use assets and obligations		(259)		(253)		(251)		(19)		(782)
Finance lease obligation interest - cash ground rent		(407)		(589)		(590)		(589)		(2,175)
Prior year property tax adjustments, net		(121)		(9)		109		189		168
Prior owner contingency funding		—		—		(900)		—		(900)
Noncontrolling interest:
Income from consolidated joint venture attributable to noncontrolling interest		(998)		(2,508)		(1,955)		(1,599)		(7,060)
Depreciation and amortization		(803)		(793)		(640)		(639)		(2,875)
Interest expense		(476)		(532)		(558)		(560)		(2,126)
Amortization of right-of-use asset and obligation		73		72		73		72		290
Adjustments to EBITDAre, net		(846)		(2,466)		(1,812)		(1,023)		(6,147)

Adjusted EBITDAre, excluding noncontrolling interest		75,466		81,162		99,122		64,494		320,244
Sold/Disposed hotel Adjusted EBITDAre (1)		(15,066)		(17,992)		(21,581)		(3,428)		(58,067)
Acquisition hotel Adjusted EBITDAre (2)		4,253		3,766		5,111		6,701		19,831

Pro Forma Adjusted EBITDAre	$	64,653	$	66,936	$	82,652	$	67,767	$	282,008

*Footnotes on Page 20


PRO FORMA CORPORATE FINANCIAL INFORMATION								Page 18


	Supplemental Financial Information November 8, 2022

Pro Forma Reconciliation of Net Income to FFO and Adjusted FFO Attributable to Common Stockholders

Q4 2019 – Q1 2019, FY 2019


	Quarter Ended								Year Ended
	December 31,		September 30,		June 30,		March 31,		December 31,
(In thousands, except per share data)	2019		2019		2019		2019		2019

Net income	$	45,414	$	33,545	$	45,918	$	17,916	$	142,793
Preferred stock dividends		(3,208)		(3,208)		(3,207)		(3,207)		(12,830)
Operations held for investment:
Real estate depreciation and amortization		36,639		36,951		35,900		35,770		145,260
Gain on sale of assets		(42,935)		—		—		—		(42,935)
Impairment loss		24,713		—		—		—		24,713
Noncontrolling interest:
Income from consolidated joint venture attributable to noncontrolling interest		(998)		(2,508)		(1,955)		(1,599)		(7,060)
Real estate depreciation and amortization		(803)		(793)		(640)		(639)		(2,875)
FFO attributable to common stockholders		58,822		63,987		76,016		48,241		247,066

Operations held for investment:
Amortization of deferred stock compensation		2,145		2,146		2,900		2,122		9,313
Real estate amortization of right-of-use assets and obligations		147		146		146		151		590
Noncash interest on derivatives and finance lease obligations, net		(857)		1,155		3,634		2,119		6,051
Prior year property tax adjustments, net		(121)		(9)		109		189		168
Prior owner contingency funding		—		—		(900)		—		(900)
Noncash income tax provision (benefit), net		934		390		2,648		(3,284)		688
Noncontrolling interest:
Real estate amortization of right-of-use asset and obligation		73		72		73		72		290
Adjustments to FFO attributable to common stockholders, net		2,321		3,900		8,610		1,369		16,200

Adjusted FFO attributable to common stockholders		61,143		67,887		84,626		49,610		263,266
Sold/Disposed hotel Adjusted FFO (1)		(13,225)		(16,144)		(19,747)		(1,608)		(50,724)
Acquisition hotel Adjusted FFO (2)		3,704		3,162		4,480		6,069		17,415
Debt and equity transactions (3)		1,702		1,713		1,723		1,734		6,872

Pro Forma Adjusted FFO attributable to common stockholders	$	53,324	$	56,618	$	71,082	$	55,805	$	236,829

Pro Forma Adjusted FFO attributable to common stockholders per diluted share	$	0.25	$	0.27	$	0.34	$	0.27	$	1.13

Basic weighted average shares outstanding		223,638		224,530		227,389		227,219		225,681
Shares associated with unvested restricted stock awards		448		253		145		260		276
Diluted weighted average shares outstanding		224,086		224,783		227,534		227,479		225,957
Equity transactions (3)		(14,853)		(15,745)		(18,622)		(18,636)		(16,950)
Pro Forma diluted weighted average shares outstanding		209,233		209,038		208,912		208,843		209,007

*Footnotes on Page 20


PRO FORMA CORPORATE FINANCIAL INFORMATION								Page 19


	Supplemental Financial Information November 8, 2022

Pro Forma Reconciliation of Net Income to EBITDAre, Adjusted EBITDAre,

FFO and Adjusted FFO Attributable to Common Stockholders

Q4 2019 – Q1 2019, FY 2019 Footnotes

(1)

Sold/Disposed hotel Adjusted EBITDAre and Adjusted FFO include results for the Courtyard by Marriott Los Angeles, the Renaissance Harborplace, the Renaissance Los Angeles Airport, the Renaissance Westchester, the Embassy Suites La Jolla and the Hyatt Centric Chicago Magnificent Mile sold in October 2019, July 2020, December 2020, October 2021, December 2021 and February 2022, respectively, along with the Embassy Suites Chicago and Hilton Garden Inn Chicago Downtown/Magnificent Mile sold in March 2022. In addition, includes results for the Hilton Times Square due to the assignment-in-lieu agreement executed in December 2020 between the Company and the hotel's mortgage holder, which transferred the Company's leasehold interest in the hotel to the mortgage holder.

(2)

(3)

Debt and Equity Transactions represent the reduction in interest expense on the mortgage loan secured by the Renaissance Washington DC due to its repayment in December 2020, along with the reduction in preferred stock dividends due to the redemptions of the 6.95% Series E and 6.45% Series F Cumulative Redeemable Preferred Stocks in June 2021 and August 2021, respectively, offset by the issuances of the 6.125% Series H and 5.70% Series I Cumulative Redeemable Preferred Stocks in May 2021 and July 2021, respectively. It also includes repurchases totaling 3,783,936 shares of common stock in the second, third and fourth quarters of 2019, 9,770,081 shares of common stock in the first quarter of 2020 and 7,995,560 shares of common stock in the first, second and third quarters of 2022, partially offset by issuances totaling 2,913,682 shares of common stock in the second quarter of 2021.


PRO FORMA CORPORATE FINANCIAL INFORMATION								Page 20


	Supplemental Financial Information November 8, 2022

CAPITALIZATION


CAPITALIZATION								Page 21


	Supplemental Financial Information November 8, 2022

Comparative Capitalization
Q3 2022 – Q3 2021


	September 30,			June 30,			March 31,			December 31,			September 30,
(In thousands, except per share data)	2022			2022			2022			2021			2021

Common Share Price & Dividends
At the end of the quarter	$	9.42		$	9.92		$	11.78		$	11.73		$	11.94
High during quarter ended	$	12.22		$	12.68		$	12.07		$	13.23		$	12.48
Low during quarter ended	$	9.42		$	9.64		$	10.15		$	10.48		$	10.68
Common dividends per share	$	0.05		$	—		$	—		$	—		$	—

Common Shares & Units
Common shares outstanding		211,570			212,451			215,668			219,334			219,334
Units outstanding		—			—			—			—			—
Total common shares and units outstanding		211,570			212,451			215,668			219,334			219,334

Capitalization
Market value of common equity	$	1,992,991		$	2,107,512		$	2,540,568		$	2,572,785		$	2,618,845
Liquidation value of preferred equity - Series G		66,250			66,250			66,250			66,250			66,250
Liquidation value of preferred equity - Series H		115,000			115,000			115,000			115,000			115,000
Liquidation value of preferred equity - Series I		100,000			100,000			100,000			100,000			100,000
Consolidated debt		816,647			805,443			575,934			611,437			745,484
Consolidated total capitalization		3,090,888			3,194,205			3,397,752			3,465,472			3,645,579

Noncontrolling interest in consolidated debt		—			—			(55,000)			(55,000)			(55,000)
Pro rata total capitalization	$	3,090,888		$	3,194,205		$	3,342,752		$	3,410,472		$	3,590,579

Consolidated debt to consolidated total capitalization		26.4	%		25.2	%		17.0	%		17.6	%		20.4	%
Pro rata debt to pro rata total capitalization		26.4	%		25.2	%		15.6	%		16.3	%		19.2	%
Consolidated debt and preferred equity to consolidated total capitalization		35.5	%		34.0	%		25.2	%		25.8	%		28.2	%
Pro rata debt and preferred equity to pro rata total capitalization		35.5	%		34.0	%		24.0	%		24.6	%		27.1	%


CAPITALIZATION								Page 22


	Supplemental Financial Information November 8, 2022

Debt Summary Schedule


(In thousands)		Interest Rate /	Maturity		September 30, 2022
Debt	Collateral	Spread	Date (1)		Balance

Secured Mortgage Debt (2)	Hilton San Diego Bayfront	3.82%	12/09/2023	$	220,000
Secured Mortgage Debt	JW Marriott New Orleans	4.15%	12/11/2024		76,647
Series A Senior Notes (3)	Unsecured	5.69%	01/10/2026		65,000
Term Loan 1 (4)	Unsecured	4.60%	07/25/2027		175,000
Series B Senior Notes (3)	Unsecured	5.79%	01/10/2028		105,000
Term Loan 2 (4)	Unsecured	3.63%	01/25/2028		175,000

TOTAL CONSOLIDATED DEBT				$	816,647

Preferred Stock
Series G cumulative redeemable preferred (5)		2.268%	perpetual	$	66,250
Series H cumulative redeemable preferred		6.125%	perpetual		115,000
Series I cumulative redeemable preferred		5.70%	perpetual		100,000
Total Preferred Stock				$	281,250

Debt Statistics
% Fixed Rate Debt					42.4	%
% Floating Rate Debt					57.6	%
Average Interest Rate					4.38	%
Weighted Average Maturity of Debt (1)					3.6 years

(1)	Maturity Date assumes the exercise of the final available extension for the mortgage secured by the Hilton San Diego Bayfront. By extending the mortgage, the Company's weighted average maturity of debt increases from 3.4 years to 3.6 years.

(2)	Interest on the mortgage debt secured by the Hilton San Diego Bayfront bears a blended rate of one-month LIBOR plus 105 basis points.

(3)

The 2020 and 2021 amendments to the Company's Senior Notes increased the annual interest rates on the Senior Notes by 1.25% through September 30, 2022. From October 1, 2022 to December 31, 2022, the increase in the annual rate will decrease to 1.00%. The Company expects the increase in the annual interest rate on the Senior Notes will be eliminated as of January 1, 2023. The interest rates presented reflect the terms of the Senior Notes amendments as of October 1, 2022.

(4)

Pursuant to the Second Amended Credit Agreement, interest rates on the term loans are calculated on a leverage-based pricing grid ranging from 135 to 220 basis points over the applicable adjusted term SOFR. The interest rate for Term Loan 2 includes the effect of the Company's interest rate derivative swap agreement.

(5)

The Series G cumulative redeemable preferred stock has an initial dividend rate equal to the Montage Healdsburg's annual net operating income yield on the Company's investment in the resort. During the first six months of 2022, the Company declared cash dividends of $0.44295 per share and together with the cash dividends of $0.124162 per share the Company declared for the last six months of 2022, this equates to an annual yield of 2.268%. The annual dividend rate may increase in 2023 to the greater of 3.0% or the rate equal to the Montage Healdsburg's annual net operating income yield on the Company's total investment in the resort.


CAPITALIZATION								Page 23


	Supplemental Financial Information November 8, 2022

PROPERTY-LEVEL DATA AND OPERATING STATISTICS


PROPERTY-LEVEL DATA AND OPERATING STATISTICS								Page 24


	Supplemental Financial Information November 8, 2022

Hotel Information as of November 8, 2022


Hotel		Location	Brand	Number of Rooms	% of Total Rooms	Interest	Year Acquired

1	Hilton San Diego Bayfront (1) (2)	California	Hilton	1,190	15.38%	Leasehold	2011 / 2022
2	Boston Park Plaza	Massachusetts	Independent	1,060	13.70%	Fee Simple	2013
3	Hyatt Regency San Francisco	California	Hyatt	821	10.61%	Fee Simple	2013
4	Renaissance Washington DC	Washington DC	Marriott	807	10.43%	Fee Simple	2005
5	Renaissance Orlando at SeaWorld®	Florida	Marriott	781	10.10%	Fee Simple	2005
6	Wailea Beach Resort	Hawaii	Marriott	547	7.07%	Fee Simple	2014
7	JW Marriott New Orleans (3)	Louisiana	Marriott	501	6.48%	Fee Simple	2011
8	Marriott Boston Long Wharf	Massachusetts	Marriott	415	5.37%	Fee Simple	2007
9	Renaissance Long Beach	California	Marriott	374	4.84%	Fee Simple	2005
10	The Confidante Miami Beach	Florida	Hyatt	339	4.38%	Fee Simple	2022
11	The Bidwell Marriott Portland	Oregon	Marriott	258	3.34%	Fee Simple	2000
12	Hilton New Orleans St. Charles	Louisiana	Hilton	252	3.26%	Fee Simple	2013
13	Oceans Edge Resort & Marina	Florida	Independent	175	2.26%	Fee Simple	2017
14	Montage Healdsburg	California	Montage	130	1.68%	Fee Simple	2021
15	Four Seasons Resort Napa Valley (4)	California	Four Seasons	85	1.10%	Fee Simple	2021

	Total Portfolio			7,735	100%

(1)	In June 2022, the Company acquired the 25.0% noncontrolling partner's ownership interest in the Hilton San Diego Bayfront. Following this acquisition, the Company owns 100% of the hotel.

(2)	The ground lease at the Hilton San Diego Bayfront matures in 2071.

(3)	Hotel is subject to a municipal airspace lease that matures in 2044 and applies only to certain balcony space fronting Canal Street that is not integral to the hotel’s operations.

(4)	The number of rooms at the Four Seasons Resort Napa Valley excludes rooms provided by owners of the separately owned Four Seasons Private Residences Napa Valley who may periodically elect to participate in the residential rental program.


PROPERTY-LEVEL DATA AND OPERATING STATISTICS								Page 25


	Supplemental Financial Information November 8, 2022

Property-Level Operating Statistics

ADR, Occupancy and RevPAR

Q3 2022/2021/2019


	ADR							Occupancy						RevPAR
Hotels sorted by number of rooms	For the Three Months Ended September 30,							For the Three Months Ended September 30,					For the Three Months Ended September 30,
	2022			2021		2019	2022 vs. 2019	2022	2021	2019	2022 vs. 2019		2022		2021			2019	2022 vs. 2019
Hilton San Diego Bayfront (1)	$	286.56	$	232.43	$	262.84	9.0%	87.9%	67.1%	89.1%	(120)	bps	$	251.89	$	155.96	$	234.19	7.6%
Boston Park Plaza	$	238.87	$	185.66	$	239.18	(0.1)%	90.1%	52.1%	96.3%	(620)	bps	$	215.22	$	96.73	$	230.33	(6.6)%
Hyatt Regency San Francisco (1)	$	281.26	$	199.35	$	308.12	(8.7)%	62.4%	52.1%	92.4%	(3,000)	bps	$	175.51	$	103.86	$	284.70	(38.4)%
Renaissance Washington DC (1)	$	211.46	$	154.56	$	198.93	6.3%	47.9%	19.2%	79.0%	(3,110)	bps	$	101.29	$	29.68	$	157.15	(35.5)%
Renaissance Orlando at SeaWorld®	$	158.60	$	152.44	$	128.70	23.2%	69.5%	47.0%	68.6%	90	bps	$	110.23	$	71.65	$	88.29	24.8%
Wailea Beach Resort	$	721.50	$	649.79	$	465.12	55.1%	82.3%	79.4%	88.8%	(650)	bps	$	593.79	$	515.93	$	413.03	43.8%
JW Marriott New Orleans	$	194.83	$	189.47	$	174.99	11.3%	56.9%	51.0%	78.3%	(2,140)	bps	$	110.86	$	96.63	$	137.02	(19.1)%
Marriott Boston Long Wharf	$	412.47	$	357.86	$	380.36	8.4%	85.0%	57.2%	94.0%	(900)	bps	$	350.60	$	204.70	$	357.54	(1.9)%
Renaissance Long Beach	$	209.71	$	196.95	$	183.73	14.1%	74.1%	69.4%	83.8%	(970)	bps	$	155.40	$	136.68	$	153.97	0.9%
The Confidante Miami Beach	$	222.54	$	213.17	$	143.14	55.5%	62.8%	64.4%	71.0%	(820)	bps	$	139.76	$	137.28	$	101.63	37.5%
The Bidwell Marriott Portland	$	187.22	$	166.32	$	210.27	(11.0)%	55.5%	42.6%	88.3%	(3,280)	bps	$	103.91	$	70.85	$	185.67	(44.0)%
Hilton New Orleans St. Charles	$	150.49	$	156.27	$	139.90	7.6%	55.6%	38.4%	68.8%	(1,320)	bps	$	83.67	$	60.01	$	96.25	(13.1)%
Oceans Edge Resort & Marina (1)	$	350.96	$	366.02	$	180.60	94.3%	65.3%	72.8%	83.5%	(1,820)	bps	$	229.18	$	266.46	$	150.80	52.0%

Comparable Portfolio (2)	$	287.75	$	259.02	$	248.22	15.9%	72.0%	53.7%	84.8%	(1,280)	bps	$	207.18	$	139.09	$	210.49	(1.6)%

Montage Healdsburg	$	1,267.66	$	1,246.45		N/A	N/A	53.6%	63.9%	N/A	N/A		$	679.47	$	796.48		N/A	N/A
Four Seasons Resort Napa Valley	$	1,976.80		N/A		N/A	N/A	41.4%	N/A	N/A	N/A		$	818.40		N/A		N/A	N/A

Total Portfolio (3)	$	311.62						71.4%					$	222.50

*Footnotes on page 29


PROPERTY-LEVEL DATA AND OPERATING STATISTICS								Page 26


	Supplemental Financial Information November 8, 2022

Property-Level Operating Statistics

ADR, Occupancy and RevPAR

Q3 YTD 2022/2021/2019


	ADR							Occupancy						RevPAR
Hotels sorted by number of rooms	For the Nine Months Ended September 30,							For the Nine Months Ended September 30,					For the Nine Months Ended September 30,
	2022			2021		2019	2022 vs. 2019	2022	2021	2019	2022 vs. 2019		2022		2021			2019	2022 vs. 2019
Hilton San Diego Bayfront (1)	$	274.76	$	202.62	$	257.32	6.8%	76.8%	44.1%	81.1%	(430)	bps	$	211.02	$	89.36	$	208.69	1.1%
Boston Park Plaza	$	222.50	$	166.83	$	217.24	2.4%	74.4%	33.4%	91.4%	(1,700)	bps	$	165.54	$	55.72	$	198.56	(16.6)%
Hyatt Regency San Francisco (1)	$	262.03	$	197.60	$	322.89	(18.8)%	55.3%	27.9%	89.2%	(3,390)	bps	$	144.90	$	55.13	$	288.02	(49.7)%
Renaissance Washington DC (1)	$	242.60	$	140.68	$	230.93	5.1%	51.6%	42.8%	79.7%	(2,810)	bps	$	125.18	$	60.21	$	184.05	(32.0)%
Renaissance Orlando at SeaWorld®	$	183.62	$	144.32	$	165.99	10.6%	68.0%	37.2%	78.1%	(1,010)	bps	$	124.86	$	53.69	$	129.64	(3.7)%
Wailea Beach Resort	$	684.67	$	601.59	$	469.49	45.8%	81.3%	63.1%	91.7%	(1,040)	bps	$	556.64	$	379.60	$	430.52	29.3%
JW Marriott New Orleans	$	232.10	$	174.01	$	205.67	12.9%	59.2%	41.3%	84.4%	(2,520)	bps	$	137.40	$	71.87	$	173.59	(20.8)%
Marriott Boston Long Wharf	$	381.40	$	321.78	$	337.94	12.9%	65.8%	34.9%	87.5%	(2,170)	bps	$	250.96	$	112.30	$	295.70	(15.1)%
Renaissance Long Beach	$	209.25	$	176.63	$	193.19	8.3%	74.8%	60.2%	82.9%	(810)	bps	$	156.52	$	106.33	$	160.15	(2.3)%
The Confidante Miami Beach	$	309.49	$	210.54	$	199.68	55.0%	72.7%	75.3%	80.1%	(740)	bps	$	225.00	$	158.54	$	159.94	40.7%
The Bidwell Marriott Portland	$	171.19	$	156.99	$	190.04	(9.9)%	49.1%	24.0%	85.2%	(3,610)	bps	$	84.05	$	37.68	$	161.91	(48.1)%
Hilton New Orleans St. Charles	$	179.95	$	133.92	$	168.21	7.0%	56.0%	36.2%	76.6%	(2,060)	bps	$	100.77	$	48.48	$	128.85	(21.8)%
Oceans Edge Resort & Marina (1)	$	451.74	$	399.96	$	244.81	84.5%	76.4%	78.9%	90.2%	(1,380)	bps	$	345.13	$	315.57	$	220.82	56.3%

Comparable Portfolio (2)	$	290.10	$	237.13	$	254.13	14.2%	67.1%	42.8%	84.6%	(1,750)	bps	$	194.66	$	101.49	$	214.99	(9.5)%

Montage Healdsburg	$	1,096.14	$	1,095.70		N/A	N/A	57.0%	48.6%	N/A	N/A		$	624.80	$	532.51		N/A	N/A
Four Seasons Resort Napa Valley	$	1,757.55		N/A		N/A	N/A	45.1%	N/A	N/A	N/A		$	792.66		N/A		N/A	N/A

Total Portfolio (3)	$	313.10						66.7%					$	208.84

*Footnotes on page 29


PROPERTY-LEVEL DATA AND OPERATING STATISTICS								Page 27


	Supplemental Financial Information November 8, 2022

Property-Level Operating Statistics

Total RevPAR (TRevPAR)

Q3 and YTD 2022/2021/2019


Hotels sorted by number of rooms	For the Three Months Ended September 30,							For the Nine Months Ended September 30,
	2022		2021			2019	2022 vs. 2019	2022		2021		2019		2022 vs. 2019
Hilton San Diego Bayfront (1)	$	435.88	$	234.98	$	394.00	10.6%	$	366.79	$	133.71	$	364.67	0.6%
Boston Park Plaza	$	297.27	$	131.79	$	309.64	(4.0)%	$	234.58	$	73.69	$	275.05	(14.7)%
Hyatt Regency San Francisco (1)	$	245.90	$	137.86	$	377.78	(34.9)%	$	212.29	$	71.96	$	407.67	(47.9)%
Renaissance Washington DC (1)	$	166.29	$	49.69	$	254.73	(34.7)%	$	192.75	$	72.14	$	292.43	(34.1)%
Renaissance Orlando at SeaWorld®	$	251.12	$	134.72	$	207.76	20.9%	$	279.21	$	101.68	$	293.54	(4.9)%
Wailea Beach Resort	$	854.83	$	713.07	$	594.74	43.7%	$	816.98	$	514.20	$	614.80	32.9%
JW Marriott New Orleans	$	147.50	$	130.74	$	176.68	(16.5)%	$	174.71	$	92.96	$	228.09	(23.4)%
Marriott Boston Long Wharf	$	477.65	$	272.55	$	478.49	(0.2)%	$	346.11	$	151.07	$	411.89	(16.0)%
Renaissance Long Beach	$	194.45	$	172.17	$	210.53	(7.6)%	$	201.03	$	127.71	$	221.18	(9.1)%
The Confidante Miami Beach	$	241.78	$	211.77	$	189.96	27.3%	$	357.01	$	245.66	$	282.64	26.3%
The Bidwell Marriott Portland	$	140.22	$	85.57	$	212.05	(33.9)%	$	113.84	$	46.48	$	186.06	(38.8)%
Hilton New Orleans St. Charles	$	99.10	$	70.39	$	111.71	(11.3)%	$	131.01	$	60.72	$	146.35	(10.5)%
Oceans Edge Resort & Marina (1)	$	371.84	$	402.72	$	256.39	45.0%	$	510.27	$	458.76	$	343.32	48.6%

Comparable Portfolio (2)	$	317.37	$	198.55	$	313.35	1.3%	$	300.40		141.55	$	328.42	(8.5)%

Montage Healdsburg	$	1,143.87	$	1,286.05		N/A	N/A	$	1,100.20	$	878.80		N/A	N/A
Four Seasons Resort Napa Valley	$	1,319.24		N/A		N/A	N/A	$	1,296.27		N/A		N/A	N/A

Total Portfolio (3)	$	343.03						$	325.29

*Footnotes on page 29


PROPERTY-LEVEL DATA AND OPERATING STATISTICS								Page 28


	Supplemental Financial Information November 8, 2022

Property-Level Operating Statistics

Q3 and YTD 2022/2021/2019 Footnotes

(1)

Operating statistics for the third quarter and first nine months of 2022 are impacted by room renovations at the Hyatt Regency San Francisco and the Renaissance Washington DC. Operating statistics for the third quarter and first nine months of 2019 are impacted by room renovations at the Hilton San Diego Bayfront, the Hyatt Regency San Francisco and the Oceans Edge Resort & Marina.

(2)

Comparable Portfolio operating statistics include the same 12 hotels owned by the Company during the third quarters and first nine months of 2022, 2021 and 2019 plus The Confidante Miami Beach acquired by the Company in June 2022. Comparable Portfolio operating statistics for the first nine months of 2022 and the third quarters and first nine months of 2021 and 2019 include prior ownership information obtained by the Company from the previous owner of The Confidante Miami Beach during the due diligence period before acquiring the hotel. The Company performed a limited review of the information as part of its analysis of the acquisition.

(3)

Total Portfolio consists of all 15 hotels owned by the Company as of September 30, 2022. Total Portfolio operating statistics for the first nine months of 2022 include rooms provided by the owners of the separately owned Four Seasons Private Residences Napa Valley who may periodically elect to participate in the residential rental program at the Four Seasons Resort Napa Valley. Total Portfolio operating statistics for the first nine months of 2021 include prior ownership results for the Montage Healdsburg. The Company obtained prior ownership information from the previous owner of the Montage Healdsburg during the due diligence period before acquiring the hotel. The Company performed a limited review of the information as part of its analysis of the acquisition.


PROPERTY-LEVEL DATA AND OPERATING STATISTICS								Page 29


	Supplemental Financial Information November 8, 2022

PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre &

ADJUSTED EBITDAre MARGINS


PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS								Page 30


	Supplemental Financial Information November 8, 2022

Property-Level Revenues, Adjusted EBITDAre and Adjusted EBITDAre Margins

Q3 2022/2021


Hotels sorted by number of rooms	For the Three Months Ended September 30,
	2022					2021
(In thousands)					Hotel Adjusted					Hotel Adjusted	Hotel Adjusted
	Total		Hotel Adjusted		EBITDAre	Total		Hotel Adjusted		EBITDAre	EBITDAre
	Revenues		EBITDAre		Margins	Revenues		EBITDAre		Margins	Margin Change
Hilton San Diego Bayfront	$	47,720	$	17,244	36.1%	$	25,726	$	8,020	31.2%	490	bps
Boston Park Plaza		28,989		9,086	31.3%		12,852		391	3.0%	2,830	bps
Hyatt Regency San Francisco (1)		18,574		1,657	8.9%		10,413		(1,334)	(12.8)%	2,170	bps
Renaissance Washington DC (1)		12,346		1,335	10.8%		3,689		(2,328)	(63.1)%	7,390	bps
Renaissance Orlando at SeaWorld®		18,043		4,685	26.0%		9,681		1,374	14.2%	1,180	bps
Wailea Beach Resort		43,019		17,860	41.5%		35,885		16,007	44.6%	(310)	bps
JW Marriott New Orleans		6,798		1,449	21.3%		6,027		1,909	31.7%	(1,040)	bps
Marriott Boston Long Wharf		18,237		8,236	45.2%		10,406		3,018	29.0%	1,620	bps
Renaissance Long Beach		6,691		1,815	27.1%		5,924		1,966	33.2%	(610)	bps
The Confidante Miami Beach		7,540		756	10.0%		6,802		464	6.8%	320	bps
The Bidwell Marriott Portland		3,328		792	23.8%		2,031		181	8.9%	1,490	bps
Hilton New Orleans St. Charles		2,298		343	14.9%		1,632		196	12.0%	290	bps
Oceans Edge Resort & Marina		5,986		1,571	26.2%		6,483		2,267	35.0%	(880)	bps

Comparable Portfolio (2)		219,569		66,829	30.4%		137,551		32,131	23.4%	700	bps

Montage Healdsburg		13,681		2,146	15.7%		15,381		3,635	23.6%	(790)	bps
Four Seasons Resort Napa Valley		11,045		447	4.0%		—		—	N/A	N/A

Total Portfolio (3)		244,295		69,422	28.4%		152,932		35,766	23.4%	N/A

Less: Prior Ownership (4)
The Confidante Miami Beach		—		—	N/A		(6,802)		(464)	6.8%	N/A

Add: Sold Hotels (5)		—		—	N/A		19,607		4,742	24.2%	N/A

Actual Portfolio (6)	$	244,295	$	69,422	28.4%	$	165,737	$	40,044	24.2%	N/A

*Footnotes on page 35


PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS								Page 31


	Supplemental Financial Information November 8, 2022

Property-Level Revenues, Adjusted EBITDAre and Adjusted EBITDAre Margins

Q3 2022/2019


Hotels sorted by number of rooms	For the Three Months Ended September 30,
	2022					2019
(In thousands)					Hotel Adjusted					Hotel Adjusted	Hotel Adjusted
	Total		Hotel Adjusted		EBITDAre	Total		Hotel Adjusted		EBITDAre	EBITDAre
	Revenues		EBITDAre		Margins	Revenues		EBITDAre		Margins	Margin Change
Hilton San Diego Bayfront (1)	$	47,720	$	17,244	36.1%	$	43,134	$	15,020	34.8%	130	bps
Boston Park Plaza		28,989		9,086	31.3%		30,195		11,289	37.4%	(610)	bps
Hyatt Regency San Francisco (1)		18,574		1,657	8.9%		27,985		7,116	25.4%	(1,650)	bps
Renaissance Washington DC (1)		12,346		1,335	10.8%		18,912		4,136	21.9%	(1,110)	bps
Renaissance Orlando at SeaWorld®		18,043		4,685	26.0%		14,928		3,625	24.3%	170	bps
Wailea Beach Resort		43,019		17,860	41.5%		29,932		11,644	38.9%	260	bps
JW Marriott New Orleans		6,798		1,449	21.3%		8,143		2,465	30.3%	(900)	bps
Marriott Boston Long Wharf		18,237		8,236	45.2%		18,269		7,994	43.8%	140	bps
Renaissance Long Beach		6,691		1,815	27.1%		7,243		2,216	30.6%	(350)	bps
The Confidante Miami Beach		7,540		756	10.0%		6,187		5	0.1%	990	bps
The Bidwell Marriott Portland		3,328		792	23.8%		4,858		2,181	44.9%	(2,110)	bps
Hilton New Orleans St. Charles		2,298		343	14.9%		2,589		392	15.1%	(20)	bps
Oceans Edge Resort & Marina (1)		5,986		1,571	26.2%		4,128		695	16.8%	940	bps

Comparable Portfolio (2)		219,569		66,829	30.4%		216,503		68,778	31.8%	(140)	bps

Montage Healdsburg		13,681		2,146	15.7%		—		—	N/A	N/A
Four Seasons Resort Napa Valley		11,045		447	4.0%		—		—	N/A	N/A

Total Portfolio (3)		244,295		69,422	28.4%		216,503		68,778	31.8%	N/A

Less: Prior Ownership (4)
The Confidante Miami Beach		—		—	N/A		(6,187)		(5)	0.1%	N/A

Add: Sold/Disposed Hotels (5)		—		—	N/A		71,301		17,992	25.2%	N/A

Actual Portfolio (6)	$	244,295	$	69,422	28.4%	$	281,617	$	86,765	30.8%	N/A

*Footnotes on page 35


PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS								Page 32


	Supplemental Financial Information November 8, 2022

Property-Level Revenues, Adjusted EBITDAre and Adjusted EBITDAre Margins

Q3 YTD 2022/2021


Hotels sorted by number of rooms	For the Nine Months Ended September 30,
	2022					2021
(In thousands)					Hotel Adjusted					Hotel Adjusted	Hotel Adjusted
	Total		Hotel Adjusted		EBITDAre	Total		Hotel Adjusted		EBITDAre	EBITDAre
	Revenues		EBITDAre		Margins	Revenues		EBITDAre		Margins	Margin Change
Hilton San Diego Bayfront	$	119,160	$	40,225	33.8%	$	43,440	$	4,920	11.3%	2,250	bps
Boston Park Plaza		67,884		16,395	24.2%		21,323		(5,893)	(27.6)%	5,180	bps
Hyatt Regency San Francisco (1)		47,581		3,278	6.9%		16,128		(8,370)	(51.9)%	5,880	bps
Renaissance Washington DC (1)		42,465		8,763	20.6%		15,892		(194)	(1.2)%	2,180	bps
Renaissance Orlando at SeaWorld®		59,530		18,725	31.5%		21,680		811	3.7%	2,780	bps
Wailea Beach Resort		122,001		51,541	42.2%		76,786		32,613	42.5%	(30)	bps
JW Marriott New Orleans		23,895		8,081	33.8%		12,714		2,535	19.9%	1,390	bps
Marriott Boston Long Wharf		39,212		14,159	36.1%		17,116		1,314	7.7%	2,840	bps
Renaissance Long Beach		20,526		6,393	31.1%		13,040		4,029	30.9%	20	bps
The Confidante Miami Beach		33,040		9,947	30.1%		23,631		3,810	16.1%	1,400	bps
The Bidwell Marriott Portland		8,018		1,531	19.1%		3,274		(1,091)	(33.3)%	5,240	bps
Hilton New Orleans St. Charles		9,013		3,077	34.1%		4,177		227	5.4%	2,870	bps
Oceans Edge Resort & Marina		24,378		9,806	40.2%		21,917		9,429	43.0%	(280)	bps

Comparable Portfolio (2)		616,703		191,921	31.1%		291,118		44,140	15.2%	1,590	bps

Montage Healdsburg		39,046		4,647	11.9%		25,433		5,248	20.6%	(870)	bps
Four Seasons Resort Napa Valley		31,506		2,849	9.0%		—		—	N/A	N/A

Total Portfolio (3)		687,255		199,417	29.0%		316,551		49,388	15.6%	N/A

Less: Prior Ownership (4)
The Confidante Miami Beach		(22,637)		(8,630)	38.1%		(23,631)		(3,810)	16.1%	N/A

Add: Sold Hotels (5)		3,234		(2,172)	(67.2)%		33,505		(3,400)	(10.1)%	N/A

Actual Portfolio (6)	$	667,852	$	188,615	28.2%	$	326,425	$	42,178	12.9%	N/A

*Footnotes on page 35


PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS								Page 33


	Supplemental Financial Information November 8, 2022

Property-Level Revenues, Adjusted EBITDAre and Adjusted EBITDAre Margins

Q3 YTD 2022/2019


Hotels sorted by number of rooms	For the Nine Months Ended September 30,
	2022					2019
(In thousands)					Hotel Adjusted					Hotel Adjusted	Hotel Adjusted
	Total		Hotel Adjusted		EBITDAre	Total		Hotel Adjusted		EBITDAre	EBITDAre
	Revenues		EBITDAre		Margins	Revenues		EBITDAre		Margins	Margin Change
Hilton San Diego Bayfront (1)	$	119,160	$	40,225	33.8%	$	118,470	$	38,209	32.3%	150	bps
Boston Park Plaza		67,884		16,395	24.2%		79,594		25,329	31.8%	(760)	bps
Hyatt Regency San Francisco (1)		47,581		3,278	6.9%		89,524		24,284	27.1%	(2,020)	bps
Renaissance Washington DC (1)		42,465		8,763	20.6%		64,426		18,291	28.4%	(780)	bps
Renaissance Orlando at SeaWorld®		59,530		18,725	31.5%		62,586		21,395	34.2%	(270)	bps
Wailea Beach Resort		122,001		51,541	42.2%		91,809		37,016	40.3%	190	bps
JW Marriott New Orleans		23,895		8,081	33.8%		31,197		12,983	41.6%	(780)	bps
Marriott Boston Long Wharf		39,212		14,159	36.1%		46,665		17,770	38.1%	(200)	bps
Renaissance Long Beach		20,526		6,393	31.1%		22,582		7,226	32.0%	(90)	bps
The Confidante Miami Beach		33,040		9,947	30.1%		27,315		6,011	22.0%	810	bps
The Bidwell Marriott Portland		8,018		1,531	19.1%		12,648		5,109	40.4%	(2,130)	bps
Hilton New Orleans St. Charles		9,013		3,077	34.1%		10,068		2,734	27.2%	690	bps
Oceans Edge Resort & Marina (1)		24,378		9,806	40.2%		16,402		5,141	31.3%	890	bps

Comparable Portfolio (2)		616,703		191,921	31.1%		673,286		221,498	32.9%	(180)	bps

Montage Healdsburg		39,046		4,647	11.9%		—		—	N/A	N/A
Four Seasons Resort Napa Valley		31,506		2,849	9.0%		—		—	N/A	N/A

Total Portfolio (3)		687,255		199,417	29.0%		673,286		221,498	32.9%	N/A

Less: Prior Ownership (4)
The Confidante Miami Beach		(22,637)		(8,630)	38.1%		(27,315)		(6,011)	22.0%	N/A

Add: Sold/Disposed Hotels (5)		3,234		(2,172)	(67.2)%		196,174		43,001	21.9%	N/A

Actual Portfolio (6)	$	667,852	$	188,615	28.2%	$	842,145	$	258,488	30.7%	N/A

*Footnotes on page 35


PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS								Page 34


	Supplemental Financial Information November 8, 2022

Property-Level Revenues, Adjusted EBITDAre and Adjusted EBITDAre Margins

Q3 and Q3 YTD 2022/2021/2019 Footnotes

(1)

Hotel Adjusted EBITDAre for the third quarter and first nine months of 2022 are impacted by room renovations at the Hyatt Regency San Francisco and the Renaissance Washington DC. Hotel Adjusted EBITDAre for the third quarter and first nine months of 2019 are impacted by room renovations at the Hilton San Diego Bayfront, the Hyatt Regency San Francisco and the Oceans Edge Resort & Marina.

(2)

Comparable Portfolio includes the same 12 hotels owned by the Company during the third quarters and first nine months of 2022, 2021 and 2019 plus The Confidante Miami Beach acquired by the Company in June 2022. Amounts included in this presentation for The Confidante Miami Beach include both prior ownership results and the Company's results. The Company obtained prior ownership information from the previous owner of The Confidante Miami Beach during the due diligence period before acquiring the hotel. The Company performed a limited review of the information as part of its analysis of the acquisition.

(3)

Total Portfolio consists of all 15 hotels owned by the Company as of September 30, 2022. The Total Portfolio includes the Company’s ownership results for the Montage Healdsburg and the Four Seasons Resort Napa Valley, which were acquired in April 2021 and December 2021, respectively. Both the Montage Healdsburg and the Four Seasons Resort Napa Valley are newly-developed hotels that opened on limited bases in December 2020 and October 2021, respectively. Prior year information is not comparable.

(4)	Prior Ownership includes results for The Confidante Miami Beach prior to the Company’s acquisition of the hotel in June 2022.

(5)

Sold Hotels for the first nine months of 2022, 2021 and 2019 include results for the Hyatt Centric Chicago Magnificent Mile, sold in February 2022, and the Embassy Suites Chicago and Hilton Garden Inn Chicago Downtown/Magnificent Mile, sold in March 2022. Sold Hotels for the third quarter and first nine months of 2021 and 2019 also include results for the Embassy Suites La Jolla and the Renaissance Westchester, sold in December 2021 and October 2021, respectively. Sold/Disposed Hotels for the third quarter and first nine months of 2019 also include results for the Renaissance Los Angeles Airport sold in December 2020, the Hilton Times Square assigned to its mortgage holder in December 2020, the Renaissance Harborplace sold in July 2020, and the Courtyard by Marriott Los Angeles sold in October 2019.

(6)	Actual Portfolio includes results for the 15 hotels and 18 hotels owned by the Company during the third quarter and first nine months of 2022, respectively, and the 18 hotels and 21 hotels owned by the Company during the third quarters and first nine months of 2021 and 2019, respectively.


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