During the six months ended June 30, 2024, the Company sold three hotels to two unrelated parties for a combined gross sales price of approximately $40.6 million, resulting in a combined gain on the sales of approximately $18.2 million, net of transaction costs, which is included in the Company’s consolidated statement of operations for the six months ended June 30, 2024. The three hotels had a total carrying value of approximately $21.8 million at their respective times of sale. There were no dispositions during the year ended December 31, 2023. The following table lists the three hotels sold in 2024:


City	State	Brand	Date Sold	Guest Rooms
Rogers	AR	Hampton	2/9/2024		122
Rogers	AR	Homewood Suites	2/9/2024		126
Greensboro	NC	SpringHill Suites	5/21/2024		82
					330

Excluding gains on sale of real estate, the Company’s consolidated statements of operations include operating income of approximately $0.3 million and $1.1 million for the six months ended June 30, 2024 and 2023, respectively, relating to the results of operations of the three hotels sold in 2024 noted above for the period of ownership. The sale of these properties does not represent a strategic shift that has, or will have, a major effect on the Company’s operations and financial results; therefore, the operating results

for the period of ownership of these properties are included in income from continuing operations for the three and six months ended June 30, 2024 and 2023. A portion of the proceeds from the sale of the two hotels in February 2024 was used to complete a like-kind exchange, in accordance with Section 1031 of the Internal Revenue Code of 1986, as amended, for the acquisition of the AC Hotel in Washington, D.C. as discussed above in Note 2, which resulted in the deferral of taxable gains of $15.1 million.