February 18, 2016

Via Edgar

Jaime G. John

Branch Chief

Division of Corporation Finance

Office of Real Estate and Commodities

Securities and Exchange Commission

100 F Street, N.E.

Washington, D.C. 20549-3628

Phone:(202) 551-3446

Re:Ashford Hospitality Prime, Inc.

Form 10-K for the year ended December 31, 2014

Filed on March 16, 2015

File No. 001-35972

Form 8-K

Filed on February 26, 2015

File No. 001-35972

Dear Ms. John:

Ashford Hospitality Prime, Inc. (the “Company”) received a comment letter from the staff of the U.S. Securities and Exchange Commission (“SEC”) dated January 13, 2016 with respect to the Company’s Form 10-K for the fiscal year ended December 31, 2014 (File No. 001-35972) filed on March 16, 2015 and the Company’s Form 8-K filed on February 26, 2015 (File No. 001-35972). On behalf of the Company, I respectfully submit the responses below to your comment letter. To facilitate your review, the comments of the Staff have been set forth below in italics and are followed by our responses.

Form 10-K for the fiscal year ended December 31, 2014

Management’s Discussion and Analysis of Financial Condition and Results of Operations, Non-GAAP Financial Measures, page 89

1.  We note your response to comment one. In future filings please ensure your disclosure clearly indicates the source of the pre-acquisition results and adjustments made to those results, if any.

Page 2

Ms. Jaime John

Securities and Exchange Commission

February 18, 2016

Response:

We acknowledge the Staff’s comment. In future filings we will indicate the source of pre-acquisition results and any adjustments made to those results.

Form 8-K filed February 26, 2015

Exhibit 99.1

2.  We note your response to comment two. In future filings, please revise your presentation of Hotel EBITDA as follows:

a. Reconcile to the most directly comparable GAAP financial measure in accordance with Regulation G and Item 10(e)(1)(i) of Regulation S-K.

b. Present Actual Hotel Adjusted EBITDA, followed by a single adjustment for pre-acquisition results to arrive at Comparable Hotel Adjusted EBITDA. Present Comparable Hotel Revenue in a similar manner if you wish to continue to present that measure.

c. Describe the source of pre-acquisition results and any adjustments made to those results. Additionally, consider disclosing whether the pre-acquisition results were audited or reviewed by your auditors as indicated in your response.

d. To the extent that you continue to present Comparable Hotel Revenue or other measures that include pre-acquisition results, tell us how you considered providing the relevant non-GAAP disclosures.

Include within your response management’s proposed disclosure.

Response:

We acknowledge the Staff’s comment. In future filings we will (i) reconcile to the most directly comparable GAAP financial measure in accordance with Regulation G and Item 10(e)(1)(i) of Regulation S-K; (ii) present Actual Hotel Adjusted EBITDA, followed by a single adjustment for pre-acquisition results to arrive at Comparable Hotel Adjusted EBITDA, as well as present Comparable Hotel Revenue in a similar manner; and (iii) describe the source of pre-acquisition results and any adjustments made to those results. Additionally, as a result of our correspondence, we have removed the schedule entitled “Hotel Profit Operating Margin.”

We present Comparable Hotel Revenue and other measures that include pre-acquisition results because we believe that it is important to show the financial and operating trends of all of our hotels. We believe that presenting comparable historical financial and operating information inclusive of pre-acquisition results is more meaningful to readers than excluding pre-acquisition results. Such presentation more clearly presents current trends, and excluding pre-acquisition information causes current information to not be comparable to prior periods.

Page 3

Ms. Jaime John

Securities and Exchange Commission

February 18, 2016

See Appendix A for our revised proposed disclosure using financial information as of and for the three months and year ended December 31, 2015. Also, as a result of our correspondence, we have included as Appendix B our original proposed draft disclosure using financial information as of and for the three months and year ended December 31, 2015.

3. Additionally, please tell us whether you have made any significant changes to your hotels after acquisition. To the extent that significant post-acquisition changes have been made, tell us how you concluded that combining pre-acquisition and post-acquisition was useful.

Response:

Upon acquisition, each hotel goes through a complete analysis to determine how financial and operating results can be improved. This is an ongoing process that is not unique to new hotels, but all hotels as management is continuously trying to improve financial and operating results for all hotels. One significant change that can be made is to replace the previous hotel manager in an effort to improve financial and operating results. Changing hotel managers is not always possible due to existing contractual obligations. As noted in response to comment #2 above, we believe that combining pre-acquisition and post-acquisition results is useful because it more clearly presents current trends, and excluding pre-acquisition information causes current information to not be comparable to prior periods.

4. We note that disclosure on page 10 reflects your key performance indicators on a pro forma basis and we further note certain key performance indicators included on page 1 are also presented on a pro forma basis. Please include balancing disclosure throughout future filings of these indicators excluding pre-acquisition amounts. Include within your response management’s proposed disclosure.

Response:

We acknowledge the Staff’s comment. In future filings we will include balancing disclosure of our key performance indicators. See Appendix A for our proposed disclosure using financial information as of and for the three months and year ended December 31, 2015.

Page 4

Ms. Jaime John

Securities and Exchange Commission

February 18, 2016

The Company acknowledges that (i) the Company is responsible for the adequacy and accuracy of the disclosure in its filings; (ii) Staff comments or changes to disclosure in response to Staff comments do not foreclose the Commission from taking any action with respect to the filing; and (iii) the Company may not assert Staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States.

Should you have any additional questions, or wish to clarify any of these matters further, please do not hesitate to contact me.

Very truly yours,
/s/ Deric S. Eubanks
	Deric S. Eubanks
	Chief Financial Officer

Enclosures –

Appendix A: Revised proposed disclosure

Appendix B: Original proposed draft disclosure

Appendix A

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

(unaudited)

	December 31,			December 31,
	2015			2014
ASSETS
Cash and cash equivalents	$	105,039		$	171,439
Investments in hotel properties, net	1,091,479			990,303
Restricted cash	33,135			29,646
Accounts receivable, net of allowance of $68 and $47, respectively	13,370			12,382
Inventories	1,451			696
Note receivable	8,098			8,098
Deferred costs, net	755			1,204
Prepaid expenses	3,132			2,422
Investment in AIM REHE Fund	48,365			—
Investment in Ashford Inc., at fair value	10,377			—
Derivative assets	753			35
Other assets	2,543			1,193
Intangible asset, net	23,160			2,542
Due from related party, net	371			541
Due from third-party hotel managers	10,722			5,504
Total assets	$	1,352,750		$	1,226,005
LIABILITIES AND EQUITY
Liabilities:
Indebtedness, net	$	835,592		$	761,727
Accounts payable and accrued expenses	43,568			29,273
Dividends payable	3,439			1,425
Unfavorable management contract liabilities	158			316
Due to Ashford Trust OP, net	528			896
Due to Ashford Inc.	6,369			2,546
Due to third-party hotel managers	1,158			954
Intangible liability, net	3,682			3,739
Other liabilities	1,181			1,131
Total liabilities	895,675			802,007
5.50% Series B cumulative convertible preferred stock, $0.01 par value, 2,600,000 shares issued and outstanding at December 31, 2015	62,248			—
Redeemable noncontrolling interests in operating partnership	61,781			149,555
Equity:
Common stock, $0.01 par value, 200,000,000 shares authorized, 28,471,775 and 24,464,163 shares issued and outstanding at December 31, 2015 and December 31, 2014, respectively	285			245
Additional paid-in capital	435,660			375,063
Accumulated deficit	(97,086		)	(96,404		)
Total stockholders’ equity of the Company	338,859			278,904
Noncontrolling interest in consolidated entities	(5,813		)	(4,461		)
Total equity	333,046			274,443
Total liabilities and equity	$	1,352,750		$	1,226,005

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2015			2014			2015			2014
REVENUE
Rooms	$	62,575		$	55,011		$	255,443		$	226,495
Food and beverage	21,526			18,366			79,894			67,854
Other	4,023			3,350			14,061			12,844
Total hotel revenue	88,124			76,727			349,398			307,193
Other	36			24			147			115
Total revenue	88,160			76,751			349,545			307,308
EXPENSES
Hotel operating expenses
Rooms	14,446			13,072			56,341			51,636
Food and beverage	14,609			11,920			53,535			44,297
Other expenses	24,337			20,515			93,742			80,593
Management fees	3,485			3,117			14,049			12,525
Total hotel operating expenses	56,877			48,624			217,667			189,051
Property taxes, insurance and other	4,736			4,047			18,517			16,174
Depreciation and amortization	11,440			10,550			43,824			40,686
Advisory services fee:
Base advisory fee	2,135			2,281			8,648			8,739
Incentive fee	3,822			—			3,822			—
Reimbursable expenses	411			433			1,827			1,690
Non-cash stock/unit-based compensation	1,745			564			3,592			2,105
Transaction costs	283			—			538			1,871
Corporate, general and administrative:
Non-cash stock/unit-based compensation	—			—			254			246
Other general and administrative	1,324			789			4,880			2,996
Total operating expenses	82,773			67,288			303,569			263,558
OPERATING INCOME	5,387			9,463			45,976			43,750
Equity in earnings (loss) of unconsolidated entity	1,292			—			(2,927		)	—
Interest income	13			7			34			27
Other income	—			—			1,233			—
Interest expense	(9,029		)	(9,372		)	(35,254		)	(37,203		)
Amortization of loan costs	(740		)	(500		)	(2,575		)	(1,828		)
Write-off of loan costs and exit fees	—			—			(54		)	—
Unrealized loss on investments	(1,988		)	—			(7,609		)	—
Unrealized loss on derivatives	(1,151		)	(48		)	(3,252		)	(111		)
INCOME (LOSS) BEFORE INCOME TAXES	(6,216		)	(450		)	(4,428		)	4,635
Income tax (expense) benefit	108			(475		)	(263		)	(1,097		)
NET INCOME (LOSS)	(6,108		)	(925		)	(4,691		)	3,538
Income from consolidated entities attributable to noncontrolling interest	(1,346		)	(1,844		)	(2,414		)	(1,103		)
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership	1,064			717			393			(496		)
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY	(6,390		)	(2,052		)	(6,712		)	1,939
Preferred dividends	(893		)	—			(1,986		)	—
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS	$	(7,283	)	$	(2,052	)	$	(8,698	)	$	1,939
INCOME (LOSS) PER SHARE — BASIC AND DILUTED
Basic:
Net income (loss) attributable to common stockholders	$	(0.26	)	$	(0.08	)	$	(0.34	)	$	0.08
Weighted average common shares outstanding – basic	28,331			24,954			25,888			24,473
Diluted:
Net income (loss) attributable to common stockholders	$	(0.26	)	$	(0.08	)	$	(0.34	)	$	0.07
Weighted average common shares outstanding – diluted	28,331			24,954			25,888			33,325
Dividends declared per common share:	$	0.10		$	0.05		$	0.35		$	0.20
Amounts attributable to common stockholders:
Net income (loss) attributable to the Company	$	(6,390	)	$	(2,052	)	$	(6,712	)	$	1,939
Preferred dividends	(893		)	—			(1,986		)	—
Net income (loss) attributable to common stockholders	$	(7,283	)	$	(2,052	)	$	(8,698	)	$	1,939

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA

(in thousands)

(unaudited)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2015			2014			2015			2014
Net income (loss)	$	(6,108	)	$	(925	)	$	(4,691	)	$	3,538
Income from consolidated entities attributable to noncontrolling interest	(1,346		)	(1,844		)	(2,414		)	(1,103		)
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership	1,064			717			393			(496		)
Net income (loss) attributable to the Company	(6,390		)	(2,052		)	(6,712		)	1,939
Interest income	(13		)	(7		)	(34		)	(26		)
Interest expense and amortization of loan costs	9,385			9,452			36,309			37,188
Depreciation and amortization	10,729			9,778			40,950			37,493
Income tax expense	(108		)	475			263			1,097
Net income (loss) attributable to redeemable noncontrolling interests in operating partnership	(1,064		)	(717		)	(393		)	496
EBITDA available to the Company and OP unitholders	12,539			16,929			70,383			78,187
Amortization of unfavorable management contract liabilities	(39		)	(39		)	(158		)	(158		)
Write-off of loan costs and exit fees	—			—			54			—
Transaction costs	378			—			633			1,871
Gain on insurance settlements	(21		)	(23		)	(21		)	(23		)
Unrealized loss on investments	1,988			—			7,609			—
Unrealized loss on derivatives	1,151			48			3,248			111
Other income (1)	—			—			(1,233		)	—
Compensation adjustment related to modified employment terms	—			—			—			573
Non-cash, non-employee stock/unit-based compensation	1,745			560			3,846			1,778
Strategic alternatives and other deal costs	61			—			973			—
Incentive fee (2)	2,548			—			2,548			—
Company’s portion of unrealized (gain) loss of AIM REHE Fund	(1,292		)	—			2,927			—
Adjusted EBITDA available to the Company and OP unitholders	$	19,058		$	17,475		$	90,809		$	82,339

NOTES:

(1)Other income, primarily consisting of net realized gain on marketable securities is excluded from Adjusted EBITDA.

(2)The incentive fee is payable to Ashford Inc. in three annual installments. The deferred portion related to the second and third payments is excluded from Adjusted EBITDA on this schedule and will be included in future periods.

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO FUNDS FROM OPERATIONS (“FFO”) AND ADJUSTED FFO

(in thousands, except per share amounts)

(unaudited)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2015			2014			2015			2014
Net income (loss)	$	(6,108	)	$	(925	)	$	(4,691	)	$	3,538
Income from consolidated entities attributable to noncontrolling interest	(1,346		)	(1,844		)	(2,414		)	(1,103		)
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership	1,064			717			393			(496		)
Preferred dividends	(893		)	—			(1,986		)	—
Net income (loss) attributable to common stockholders	(7,283		)	(2,052		)	(8,698		)	1,939
Depreciation and amortization on real estate	10,729			9,778			40,950			37,493
Net income (loss) attributable to redeemable noncontrolling interests in operating partnership	(1,064		)	(717		)	(393		)	496
FFO available to common stockholders and OP unitholders	2,382			7,009			31,859			39,928
Preferred dividends	893			—			1,986			—
Unrealized loss on investments	1,988			—			7,609			—
Unrealized loss on derivatives	1,151			48			3,248			111
Other income (1)	—			—			(1,233		)	—
Transaction costs	378			—			633			1,871
Gain on insurance settlements	(21		)	(23		)	(21		)	(23		)
Strategic alternatives and other deal costs	61			—			973			—
Compensation adjustment related to modified employment terms	—			—			—			573
Write-off of loan costs and exit fees	—			—			54			—
Incentive fee (2)	2,548			—			2,548			—
Company’s portion of unrealized (gain) loss of AIM REHE Fund	(1,292		)	—			2,927			—
Adjusted FFO available to the Company and OP unitholders	$	8,088		$	7,034		$	50,583		$	42,460
Adjusted FFO per diluted share available to common stockholders and OP unitholders	$	0.22		$	0.21		$	1.46		$	1.27
Weighted average diluted shares	36,091			34,068			34,542			33,421

NOTES:

(1)Other income, primarily consisting of net realized gain/loss on marketable securities is excluded from Adjusted FFO.

(2)The incentive fee is payable to Ashford Inc. in three annual installments. The deferred portion related to the second and third payments is excluded from Adjusted FFO on this schedule and will be included in future periods.

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

SUMMARY OF INDEBTEDNESS

DECEMBER 31, 2015

(dollars in thousands)

(unaudited)

												Comparable		Comparable
			Fixed-Rate			Floating-Rate			Total			TTM Hotel		TTM EBITDA
Indebtedness	Maturity	Interest Rate	Debt			Debt			Debt			EBITDA (5)		Debt Yield
GACC Sofitel - 1 hotel	March 2016	LIBOR + 2.30%	$	—		$	80,000	(3)	$	80,000		$	8,360	10.5	%
Senior credit facility - Various	November 2016	LIBOR + 2.25% to 3.75%	—			—		(1)	—			N/A		N/A
Credit Agricole Pier House - 1 hotel	March 2017	LIBOR + 2.25% to 2.50%	—			70,000		(2)	70,000			9,728		13.9	%
Wachovia Philly CY - 1 hotel	April 2017	5.91%	33,381			—			33,381			12,518		37.5	%
Wachovia 3 - 2 hotels	April 2017	5.95%	122,374			—			122,374			20,249		16.5	%
Wachovia 7 - 3 hotels	April 2017	5.95%	249,020			—			249,020			31,582		12.7	%
Column Financial - 1 hotel	December 2017	LIBOR + 4.95%	—			40,000		(3)	40,000			3,845		9.6	%
Apollo - 1 hotel	December 2017	LIBOR + 4.95%	—			42,000		(3)	42,000			9,156		21.8	%
TIF Philly CY - 1 hotel	June 2018	12.85%	8,098			—			8,098			N/A		N/A
Aareal - 2 hotels	November 2019	LIBOR + 2.65%	—			195,359		(4)	195,359			27,818		14.2	%
Total			$	412,873		$	427,359		$	840,232		$	123,256	14.7	%
Percentage			49.1		%	50.9		%	100.0		%
Weighted average interest rate			6.08		%	3.39		%	4.71		%

All indebtedness is non-recourse with the exception of the senior credit facility.

(1) This credit facility has two one-year extension options subject to advance notice, certain conditions and a 0.25% extension fee beginning November 2016.

(2) On March 7, 2015, we refinanced our $69.0 million mortgage loan due September 2015 with a $70.0 million loan due March 2017 with three one-year extension options.  The new loan provides for a floating interest rate of LIBOR + 2.25%.

(3) This mortgage loan has three one-year extension options subject to satisfaction of certain conditions.

(4) This mortgage loan has two one-year extension options subject to satisfaction of certain conditions.

(5) See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

INDEBTEDNESS BY MATURITY ASSUMING EXTENSION OPTIONS ARE EXERCISED

DECEMBER 31, 2015

(in thousands)

(unaudited)

	2016		2017		2018		2019		2020		Thereafter		Total
Senior credit facility - Various	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Wachovia Philly CY - 1 hotel	—		32,532		—		—		—		—		32,532
Wachovia 3 - 2 hotels	—		119,245		—		—		—		—		119,245
Wachovia 7 - 3 hotels	—		242,202		—		—		—		—		242,202
TIF Philly CY - 1 hotel	—		—		8,098		—		—		—		8,098
GACC Sofitel - 1 hotel	—		—		—		80,000		—		—		80,000
Credit Agricole Pier House - 1 hotel	—		—		—		—		70,000		—		70,000
Column Financial - 1 hotel	—		—		—		—		40,000		—		40,000
Apollo - 1 hotel	—		—		—		—		42,000		—		42,000
Aareal - 2 hotels	—		—		—		—		—		177,486		177,486
Principal due in future periods	$	—	$	393,979	$	8,098	$	80,000	$	152,000	$	177,486	$	811,563
Scheduled amortization payments remaining	8,856		7,526		2,939		3,120		3,312		2,916		28,669
Total indebtedness	$	8,856	$	401,505	$	11,037	$	83,120	$	155,312	$	180,402	$	840,232

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

KEY PERFORMANCE INDICATORS

(unaudited)

	Three Months Ended
	December 31,
	Actual			Pre-acquisition			Comparable			Actual			Pre-acquisition (A)			Comparable			Comparable
	2015			2015			2015			2014			2014			2014			% Variance
ALL HOTELS:
Rooms revenue (in thousands)	$	62,575		$	3,765		$	66,340		$	55,011		$	8,488		$	63,499		4.47	%
RevPAR	$	178.74		$	278.91		$	182.46		$	161.30		$	381.27		$	174.78		4.39	%
Occupancy	78.59		%	72.02		%	78.34		%	79.01		%	62.98		%	78.03		%	0.40	%
ADR	$	227.45		$	387.25		$	232.91		$	204.15		$	605.41		$	224.00		3.98	%

	Year Ended
	December 31,
	Actual			Pre-acquisition			Comparable			Actual			Pre-acquisition (A)			Comparable			Comparable
	2015			2015			2015			2014			2014			2014			% Variance
ALL HOTELS:
Rooms revenue (in thousands)	$	255,443		$	32,154		$	287,597		$	226,495		$	41,250		$	267,745		7.41	%
RevPAR	$	186.76		$	432.43		$	199.43		$	171.37		$	346.29		$	185.83		7.32	%
Occupancy	82.32		%	79.67		%	82.19		%	81.62		%	70.12		%	80.67		%	1.88	%
ADR	$	226.87		$	542.81		$	242.66		$	209.96		$	493.85		$	230.36		5.34	%

NOTES:

(1)The above comparable information assumes the twelve hotel properties owned and included in the Company’s operations at December 31, 2015, were owned as of the beginning of each of the periods presented.

(2)All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

FOOTNOTES:

(A)These amounts include immaterial comparability adjustments to conform the Company’s 2014 actual amounts to the industry’s Uniform System of Accounts for the Lodging Industry Eleventh Revised Edition, which became effective January 1, 2015.

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

HOTEL EBITDA

(dollars in thousands)

(unaudited)

ALL HOTELS:

	Three Months Ended
	December 31,
	Actual			Pre-acquisition			Comparable			Actual			Pre-acquisition (A)			Comparable			Comparable
	2015			2015			2015			2014			2014			2014			% Variance
REVENUE
Rooms	$	62,575		$	3,765		$	66,340		$	55,011		$	8,488		$	63,499		4.5	%
Food and beverage	21,526			2,537			24,063			18,366			4,638			23,004			4.6	%
Other	4,023			1,404			5,427			3,350			2,082			5,432			-0.1	%
Total hotel revenue	88,124			7,706			95,830			76,727			15,208			91,935			4.2	%
EXPENSES
Rooms	$	14,446		$	1,322		$	15,768		$	13,072		$	2,027		$	15,099		4.4	%
Food and beverage	14,609			2,495			17,104			11,920			4,656			16,576			3.2	%
Other direct	1,365			747			2,112			1,459			772			2,231			-5.3	%
Other indirect	21,086			3,019			24,105			17,789			5,655			23,444			2.8	%
Management fees, includes base and incentive fees	4,849			-42			4,807			3,895			446			4,341			10.7	%
Total hotel operating expenses	56,355			7,541			63,896			48,135			13,556			61,691			3.6	%
Property taxes, insurance, and other	4,740			166			4,906			4,065			372			4,437			10.6	%
HOTEL EBITDA	27,029			-1			27,028			24,527			1,280			25,807			4.7	%
Hotel EBITDA Margin	30.67		%	-0.01		%	28.20		%	31.52		%	8.42		%	28.07		%	0.13	%
Minority interest in earnings of consolidated joint ventures	1,339			—			1,339			1,427			—			1,427			-6.2	%
HOTEL EBITDA
excluding minority interest in joint ventures	$	25,690		$	-1		$	25,689		$	23,100		$	1,281		$	24,380		5.4	%

ALL HOTELS:

	Year Ended
	December 31,
	Actual			Pre-acquisition			Comparable			Actual			Pre-acquisition (A)			Comparable			Comparable
	2015			2015			2015			2014			2014			2014			% Variance
REVENUE
Rooms	$	255,443		$	32,154		$	287,597		$	226,495		$	41,250		$	267,745		7.4	%
Food and beverage	79,894			16,336			96,230			67,854			22,814			90,667			6.1	%
Other	14,061			8,695			22,756			12,844			9,600			22,444			1.4	%
Total hotel revenue	349,398			57,185			406,583			307,193			73,664			380,856			6.8	%
EXPENSES
Rooms	$	56,341		$	8,882		$	65,223		$	51,636		$	9,858		$	61,494		6.1	%
Food and beverage	53,535			14,614			68,149			44,297			20,751			65,048			4.8	%
Other direct	4,476			3,957			8,433			5,466			3,803			9,269			-9.0	%
Other indirect	80,211			17,853			98,064			68,420			24,479			92,898			5.6	%
Management fees, includes base and incentive fees	21,847			1,869			23,716			17,924			2,280			20,204			17.4	%
Total hotel operating expenses	216,410			47,175			263,585			187,743			61,171			248,913			5.9	%
Property taxes, insurance, and other	18,453			1,289			19,742			16,163			2,214			18,377			7.4	%
HOTEL EBITDA	114,535			8,721			123,256			103,287			10,279			113,566			8.5	%
Hotel EBITDA Margin	32.78		%	15.25		%	30.32		%	33.62		%	13.95		%	29.82		%	0.50	%
Minority interest in earnings of consolidated joint ventures	6,954			—			6,954			6,531			—			6,531			6.5	%
HOTEL EBITDA
excluding minority interest in joint ventures	$	107,581		$	8,721		$	116,302		$	96,756		$	10,279		$	107,035		8.7	%

NOTES:

(1)The above comparable information assumes the twelve hotel properties owned and included in the Company’s operations at December 31, 2015, were owned as of the beginning of each of the periods presented.

(2)All pre-acquisition information was obtained from the prior owner.The Company performed a limited review of the information as part of its analysis of the acquisition. Adjustments have been made to the pre-acquisition results as indicated below:

(a)Management fee expense was adjusted to reflect current contractual rates

(b)Lease expense was adjusted to reflect additional expense from a below market rate ground lease on the Bardessono Hotel and Spa

(3)These amounts include immaterial comparability adjustments to conform the Company’s 2014 actual amounts to the industry’s Uniform System of Accounts for the Lodging Industry Eleventh Revised Edition, which became effective January 1, 2015.

(4)See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

FOOTNOTES:

(A)These amounts include immaterial comparability adjustments to conform the Company’s 2014 actual amounts to the industry’s Uniform System of Accounts for the Lodging Industry Eleventh Revised Edition, which became effective January 1, 2015.

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

SELECTED FINANCIAL AND OPERATING INFORMATION BY PROPERTY

(in thousands, except operating information)

(unaudited)

THE FOLLOWING TABLE PRESENTS SELECTED FINANCIAL AND OPERATING INFORMATION BY PROPERTY FOR THE TWELVE PROPERTIES INCLUDED IN THE ASHFORD PRIME PORTFOLIO:

	Three Months Ended December 31, 2015
	Actual			Pre-acquisition		Comparable			Actual			Pre-acquisition (A)			Comparable			Comparable
	2015			2015		2015			2014			2014			2014			% Variance
CAPITAL HILTON WASHINGTON DC
Selected Financial Information:
Rooms Revenue	$	8,738		$	—	$	8,738		$	8,795		$	-64		$	8,731		0.08	%
Total Hotel Revenue	$	12,440		$	—	$	12,440		$	12,272		$	299		$	12,571		-1.04	%
Hotel EBITDA	$	3,033		$	—	$	3,033		$	3,549		$	—		$	3,549		-14.54	%
Hotel EBITDA Margin	24.38		%	—		24.38		%	28.92		%	—			28.23		%	-3.85	%
Selected Operating Information:
RevPAR	$	172.70		$	—	$	172.70		$	174.77		$	(1.28	)	$	173.49		-0.46	%
Occupancy	79.48		%	—		79.48		%	81.58		%	—			81.58		%	-2.57	%
ADR	$	217.29		$	—	$	217.29		$	214.25		$	(1.57	)	$	212.68		2.17	%
LA JOLLA HILTON TORREY PINES
Selected Financial Information:
Rooms Revenue	$	5,072		$	—	$	5,072		$	4,734		$	-3		$	4,731		7.21	%
Total Hotel Revenue	$	9,266		$	—	$	9,266		$	8,546		$	215		$	8,761		5.76	%
Hotel EBITDA	$	2,321		$	—	$	2,321		$	2,161		$	—		$	2,161		7.40	%
Hotel EBITDA Margin	25.05		%	—		25.05		%	25.29		%	—			24.67		%	0.38	%
Selected Operating Information:
RevPAR	$	139.93		$	—	$	139.93		$	130.60		$	(0.09	)	$	130.51		7.22	%
Occupancy	83.68		%	—		83.68		%	84.67		%	—			84.67		%	-1.17	%
ADR	$	167.22		$	—	$	167.22		$	154.24		$	(0.11	)	$	154.13		8.49	%
CHICAGO SOFITEL WATER TOWER
Selected Financial Information:
Rooms Revenue	$	6,605		$	—	$	6,605		$	7,144		$	—		$	7,144		-7.54	%
Total Hotel Revenue	$	9,350		$	—	$	9,350		$	10,303		$	—		$	10,303		-9.25	%
Hotel EBITDA	$	2,093		$	—	$	2,093		$	2,899		$	—		$	2,899		-27.80	%
Hotel EBITDA Margin	22.39		%	—		22.39		%	28.14		%	—			28.14		%	-5.75	%
Selected Operating Information:
RevPAR	$	173.00		$	—	$	173.00		$	187.11		$	—		$	187.11		-7.54	%
Occupancy	77.84		%	—		77.84		%	78.81		%	—			78.81		%	-1.22	%
ADR	$	222.24		$	—	$	222.24		$	237.43		$	—		$	237.43		-6.40	%
BARDESSONO HOTEL AND SPA
Selected Financial Information:
Rooms Revenue	$	3,290		$	—	$	3,290		$	—		$	3,107		$	3,107		5.89	%
Total Hotel Revenue	$	4,740		$	—	$	4,740		$	—		$	4,390		$	4,390		7.97	%
Hotel EBITDA	$	1,193		$	—	$	1,193		$	—		$	902		$	902		32.23	%
Hotel EBITDA Margin	25.17		%	—		25.17		%	—			20.55		%	20.55		%	4.62	%
Selected Operating Information:
RevPAR	$	576.80		$	—	$	576.80		$	—		$	544.79		$	544.79		5.88	%
Occupancy	77.98		%	—		77.98		%	—			77.28		%	77.28		%	0.91	%
ADR	$	739.68		$	—	$	739.68		$	—		$	704.96		$	704.96		4.92	%
KEY WEST PIER HOUSE RESORT
Selected Financial Information:
Rooms Revenue	$	4,581		$	—	$	4,581		$	4,203		$	—		$	4,203		8.99	%
Total Hotel Revenue	$	5,691		$	—	$	5,691		$	5,365		$	—		$	5,365		6.08	%
Hotel EBITDA	$	2,384		$	—	$	2,384		$	2,234		$	—		$	2,234		6.71	%
Hotel EBITDA Margin	41.89		%	—		41.89		%	41.64		%	—			41.64		%	0.25	%
Selected Operating Information:
RevPAR	$	350.64		$	—	$	350.64		$	321.70		$	—		$	321.70		9.00	%
Occupancy	89.11		%	—		89.11		%	86.28		%	—			86.28		%	3.27	%
ADR	$	393.50		$	—	$	393.50		$	372.84		$	—		$	372.84		5.54	%
PHILADELPHIA COURTYARD DOWNTOWN
Selected Financial Information:
Rooms Revenue	$	6,731		$	—	$	6,731		$	6,355		$	—		$	6,355		5.92	%
Total Hotel Revenue	$	8,310		$	—	$	8,310		$	7,867		$	77		$	7,944		4.61	%
Hotel EBITDA	$	3,252		$	—	$	3,252		$	2,966		$	—		$	2,966		9.64	%
Hotel EBITDA Margin	39.13		%	—		39.13		%	37.70		%	—			37.34		%	1.80	%
Selected Operating Information:
RevPAR	$	146.62		$	—	$	146.62		$	138.42		$	—		$	138.42		5.92	%
Occupancy	80.63		%	—		80.63		%	79.89		%	—			79.89		%	0.93	%
ADR	$	181.85		$	—	$	181.85		$	173.27		$	—		$	173.27		4.95	%
PLANO MARRIOTT LEGACY TOWN CENTER
Selected Financial Information:
Rooms Revenue	$	4,811		$	—	$	4,811		$	4,404		$	—		$	4,404		9.24	%
Total Hotel Revenue	$	7,858		$	—	$	7,858		$	7,500		$	180		$	7,680		2.32	%
Hotel EBITDA	$	2,568		$	—	$	2,568		$	2,556		$	—		$	2,556		0.47	%
Hotel EBITDA Margin	32.68		%	—		32.68		%	34.08		%	—			33.28		%	-0.60	%
Selected Operating Information:
RevPAR	$	129.44		$	—	$	129.44		$	118.49		$	—		$	118.49		9.24	%
Occupancy	66.92		%	—		66.92		%	66.22		%	—			66.22		%	1.06	%
ADR	$	193.43		$	—	$	193.43		$	178.93		$	—		$	178.93		8.11	%

	Three Months Ended December 31, 2015
	Actual			Pre-acquisition			Comparable			Actual			Pre-acquisition (A)			Comparable			Comparable
	2015			2015			2015			2014			2014			2014			% Variance
SAN FRANCISCO COURTYARD DOWNTOWN
Selected Financial Information:
Rooms Revenue	$	8,252		$	—		$	8,252		$	8,355		$	—		$	8,355		-1.23	%
Total Hotel Revenue	$	9,653		$	—		$	9,653		$	9,698		$	62		$	9,760		-1.10	%
Hotel EBITDA	$	3,013		$	—		$	3,013		$	3,131		$	—		$	3,131		-3.77	%
Hotel EBITDA Margin	31.21		%	—			31.21		%	32.29		%	—			32.08		%	-0.87	%
Selected Operating Information:
RevPAR	$	221.48		$	—		$	221.48		$	224.22		$	—		$	224.22		-1.22	%
Occupancy	86.25		%	—			86.25		%	89.55		%	—			89.55		%	-3.68	%
ADR	$	256.79		$	—		$	256.79		$	250.39		$	—		$	250.39		2.55	%
SEATTLE COURTYARD DOWNTOWN
Selected Financial Information:
Rooms Revenue	$	2,807		$	—		$	2,807		$	2,690		$	—		$	2,690		4.35	%
Total Hotel Revenue	$	3,382		$	—		$	3,382		$	3,181		$	7		$	3,188		6.09	%
Hotel EBITDA	$	1,328		$	—		$	1,328		$	1,259		$	—		$	1,259		5.48	%
Hotel EBITDA Margin	39.27		%	—			39.27		%	39.58		%	—			39.49		%	-0.23	%
Selected Operating Information:
RevPAR	$	122.07		$	—		$	122.07		$	116.96		$	—		$	116.96		4.37	%
Occupancy	74.76		%	—			74.76		%	74.26		%	—			74.26		%	0.68	%
ADR	$	163.27		$	—		$	163.27		$	157.51		$	—		$	157.51		3.66	%
SEATTLE MARRIOTT WATERFRONT
Selected Financial Information:
Rooms Revenue	$	5,550		$	—		$	5,550		$	5,050		$	—		$	5,050		9.90	%
Total Hotel Revenue	$	8,033		$	—		$	8,033		$	6,969		$	116		$	7,085		13.38	%
Hotel EBITDA	$	2,919		$	—		$	2,919		$	2,521		$	—		$	2,521		15.79	%
Hotel EBITDA Margin	36.34		%	—			36.34		%	36.17		%	—			35.58		%	0.76	%
Selected Operating Information:
RevPAR	$	168.50		$	—		$	168.50		$	153.33		$	—		$	153.33		9.89	%
Occupancy	76.52		%	—			76.52		%	72.33		%	—			72.33		%	5.78	%
ADR	$	220.21		$	—		$	220.21		$	211.98		$	—		$	211.98		3.88	%
ST THOMAS RITZ-CARLTON
Selected Financial Information:
Rooms Revenue	$	2,642		$	3,765		$	6,407		$	—		$	5,449		$	5,449		17.58	%
Total Hotel Revenue	$	3,884		$	7,706		$	11,590		$	—		$	9,729		$	9,729		19.13	%
Hotel EBITDA	$	1,489		$	-1		$	1,488		$	—		$	378		$	378		293.62	%
Hotel EBITDA Margin	38.34		%	-0.01		%	12.84		%	—			3.89		%	3.89		%	8.95	%
Selected Operating Information:
RevPAR	$	863.30		$	278.91		$	386.89		$	—		$	329.02		$	329.02		17.59	%
Occupancy	73.17		%	72.02		%	72.23		%	—			58.05		%	58.05		%	24.44	%
ADR	$	1,179.85		$	387.25		$	535.61		$	—		$	566.80		$	566.80		-5.50	%
TAMPA RENAISSANCE
Selected Financial Information:
Rooms Revenue	$	3,495		$	—		$	3,495		$	3,282		$	—		$	3,282		6.49	%
Total Hotel Revenue	$	5,517		$	—		$	5,517		$	5,026		$	132		$	5,158		6.96	%
Hotel EBITDA	$	1,436		$	—		$	1,436		$	1,251		$	—		$	1,251		14.79	%
Hotel EBITDA Margin	26.03		%	—			26.03		%	24.89		%	—			24.25		%	1.78	%
Selected Operating Information:
RevPAR	$	129.65		$	—		$	129.65		$	121.74		$	—		$	121.74		6.50	%
Occupancy	74.55		%	—			74.55		%	77.17		%	—			77.17		%	-3.40	%
ADR	$	173.90		$	—		$	173.90		$	157.75		$	—		$	157.75		10.24	%
PRIME PROPERTIES TOTAL (12)
Selected Financial Information:
Rooms Revenue	$	62,575		$	3,765		$	66,340		$	55,011		$	8,488		$	63,499		4.47	%
Total Hotel Revenue	$	88,124		$	7,706		$	95,830		$	76,727		$	15,208		$	91,935		4.24	%
Hotel EBITDA	$	27,029		$	-1		$	27,028		$	24,527		$	1,280		$	25,807		4.73	%
Hotel EBITDA Margin	30.67		%	-0.01		%	28.20		%	31.52		%	8.42		%	28.07		%	0.13	%
Selected Operating Information:
RevPAR	$	178.74		$	278.91		$	182.46		$	161.30		$	381.27		$	174.78		4.39	%
Occupancy	78.59		%	72.02		%	78.34		%	79.01		%	62.98		%	78.03		%	0.40	%
ADR	$	227.45		$	387.25		$	232.91		$	204.15		$	605.41		$	224.00		3.98	%

NOTES:

(1)The above comparable information assumes the twelve hotel properties owned and included in the Company’s operations at December 31, 2015, were owned as of the beginning of each of the periods presented.

(2)All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates

(b) Lease expense was adjusted to reflect additional expense from a below market rate ground lease on the Bardessono Hotel and Spa

(3)See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

FOOTNOTES:

(A)These amounts include immaterial comparability adjustments to conform the Company’s 2014 actual amounts to the industry’s Uniform System of Accounts for the Lodging Industry Eleventh Revised Edition, which became effective January 1, 2015.

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

SELECTED  FINANCIAL AND OPERATING INFORMATION BY PROPERTY

(in thousands, except operating information)

(unaudited)

THE FOLLOWING TABLE PRESENTS SELECTED FINANCIAL AND OPERATING INFORMATION BY PROPERTY FOR THE TWELVE PROPERTIES INCLUDED IN THE ASHFORD PRIME PORTFOLIO:

	Year Ended December 31,
	Actual			Pre-acquisition			Comparable			Actual			Pre-acquisition (A)			Comparable			Comparable
	2015			2015			2015			2014			2014			2014			% Variance
CAPITAL HILTON WASHINGTON DC
Selected Financial Information:
Rooms Revenue	$	38,045		$	—		$	38,045		$	37,060		$	-239		$	36,820		3.33	%
Total Revenue	$	54,423		$	—		$	54,423		$	50,920		$	1,207		$	52,127		4.40	%
Hotel EBITDA	$	15,297		$	—		$	15,297		$	15,183		$	—		$	15,183		0.75	%
Hotel EBITDA Margin	28.11		%	—			28.11		%	29.82		%	—			29.13		%	-1.02	%
Selected Operating Information:
RevPAR	$	189.88		$	—		$	189.88		$	186.11		$	(1.20	)	$	184.91		2.69	%
Occupancy	85.43		%	—			85.43		%	84.76		%	—			84.76		%	0.79	%
ADR	$	222.26		$	—		$	222.26		$	219.56		$	(1.42	)	$	218.15		1.88	%
LA JOLLA HILTON TORREY PINES
Selected Financial Information:
Rooms Revenue	$	23,463		$	—		$	23,463		$	21,673		$	-99		$	21,574		8.76	%
Total Revenue	$	40,541		$	—		$	40,541		$	36,393		$	794		$	37,187		9.02	%
Hotel EBITDA	$	12,521		$	—		$	12,521		$	10,942		$	—		$	10,942		14.43	%
Hotel EBITDA Margin	30.88		%	—			30.88		%	30.07		%	—			29.42		%	1.46	%
Selected Operating Information:
RevPAR	$	163.15		$	—		$	163.15		$	150.71		$	(0.69	)	$	150.02		8.75	%
Occupancy	85.35		%	—			85.35		%	84.50		%	—			84.50		%	1.00	%
ADR	$	191.16		$	—		$	191.16		$	178.35		$	(0.81	)	$	177.54		7.67	%
CHICAGO SOFITEL WATER TOWER
Selected Financial Information:
Rooms Revenue	$	26,980		$	—		$	26,980		$	25,534		$	1,834		$	27,368		-1.42	%
Total Revenue	$	37,322		$	—		$	37,322		$	36,635		$	3,130		$	39,765		-6.14	%
Hotel EBITDA	$	8,360		$	—		$	8,360		$	11,334		$	-428		$	10,906		-23.34	%
Hotel EBITDA Margin	22.40		%	—			22.40		%	30.94		%	-13.67		%	27.43		%	-5.03	%
Selected Operating Information:
RevPAR	$	178.11		$	—		$	178.11		$	197.84		$	81.87		$	180.68		-1.42	%
Occupancy	80.03		%	—			80.03		%	84.21		%	58.81		%	80.45		%	-0.53	%
ADR	$	222.55		$	—		$	222.55		$	234.93		$	139.20		$	224.57		-0.90	%
BARDESSONO HOTEL AND SPA
Selected Financial Information:
Rooms Revenue	$	6,855		$	5,914		$	12,769		$	—		$	12,124		$	12,124		5.32	%
Total Revenue	$	9,684		$	8,806		$	18,490		$	—		$	17,212		$	17,212		7.43	%
Hotel EBITDA	$	2,791		$	1,054		$	3,845		$	—		$	3,733		$	3,733		3.00	%
Hotel EBITDA Margin	28.82		%	11.97		%	20.80		%	—			21.69		%	21.69		%	-0.89	%
Selected Operating Information:
RevPAR	$	628.17		$	504.69		$	564.23		$	—		$	535.76		$	535.76		5.31	%
Occupancy	79.69		%	77.82		%	78.72		%	—			79.09		%	79.09		%	-0.46	%
ADR	$	788.25		$	648.53		$	716.73		$	—		$	677.44		$	677.44		5.80	%
KEY WEST PIER HOUSE RESORT
Selected Financial Information:
Rooms Revenue	$	18,549		$	—		$	18,549		$	13,877		$	3,416		$	17,293		7.26	%
Total Revenue	$	23,192		$	—		$	23,192		$	17,669		$	4,260		$	21,929		5.76	%
Hotel EBITDA	$	9,728		$	—		$	9,728		$	6,701		$	1,938		$	8,639		12.61	%
Hotel EBITDA Margin	41.95		%	—			41.95		%	37.93		%	45.49		%	39.40		%	2.55	%
Selected Operating Information:
RevPAR	$	357.88		$	—		$	357.88		$	319.37		$	407.75		$	333.66		7.26	%
Occupancy	90.15		%	—			90.15		%	85.18		%	93.63		%	86.55		%	4.16	%
ADR	$	396.99		$	—		$	396.99		$	374.92		$	435.51		$	385.52		2.98	%
PHILADELPHIA COURTYARD DOWNTOWN
Selected Financial Information:
Rooms Revenue	$	26,461		$	—		$	26,461		$	23,997		$	—		$	23,997		10.27	%
Total Revenue	$	32,044		$	—		$	32,044		$	29,379		$	273		$	29,652		8.07	%
Hotel EBITDA	$	12,518		$	—		$	12,518		$	11,312		$	-1		$	11,311		10.67	%
Hotel EBITDA Margin	39.07		%	—			39.07		%	38.50		%	—			38.15		%	0.92	%
Selected Operating Information:
RevPAR	$	145.28		$	—		$	145.28		$	131.81		$	—		$	131.81		10.22	%
Occupancy	82.62		%	—			82.62		%	79.40		%	—			79.40		%	4.05	%
ADR	$	175.85		$	—		$	175.85		$	166.01		$	—		$	166.01		5.93	%
PLANO MARRIOTT LEGACY TOWN CENTER
Selected Financial Information:
Rooms Revenue	$	20,263		$	—		$	20,263		$	18,222		$	—		$	18,222		11.20	%
Total Revenue	$	32,033		$	—		$	32,033		$	28,879		$	594		$	29,473		8.69	%
Hotel EBITDA	$	11,087		$	—		$	11,087		$	9,876		$	—		$	9,876		12.26	%
Hotel EBITDA Margin	34.61		%	—			34.61		%	34.20		%	—			33.51		%	1.10	%
Selected Operating Information:
RevPAR	$	137.41		$	—		$	137.41		$	123.57		$	—		$	123.57		11.20	%
Occupancy	71.03		%	—			71.03		%	69.12		%	—			69.12		%	2.76	%
ADR	$	193.45		$	—		$	193.45		$	178.78		$	—		$	178.78		8.21	%

	Year Ended December 31,
	Actual			Pre-acquisition			Comparable			Actual			Pre-acquisition (A)			Comparable			Comparable
	2015			2015			2015			2014			2014			2014			% Variance
SAN FRANCISCO COURTYARD DOWNTOWN
Selected Financial Information:
Rooms Revenue	$	35,988		$	—		$	35,988		$	33,984		$	—		$	33,984		5.90	%
Total Revenue	$	41,938		$	—		$	41,938		$	39,148		$	238		$	39,386		6.48	%
Hotel EBITDA	$	13,688		$	—		$	13,688		$	13,065		$	1		$	13,066		4.76	%
Hotel EBITDA Margin	32.64		%	—			32.64		%	33.37		%	—			33.17		%	-0.54	%
Selected Operating Information:
RevPAR	$	243.45		$	—		$	243.45		$	229.90		$	—		$	229.90		5.89	%
Occupancy	91.10		%	—			91.10		%	89.89		%	—			89.89		%	1.34	%
ADR	$	267.24		$	—		$	267.24		$	255.75		$	—		$	255.75		4.49	%
SEATTLE COURTYARD DOWNTOWN
Selected Financial Information:
Rooms Revenue	$	14,153		$	—		$	14,153		$	13,194		$	—		$	13,194		7.27	%
Total Revenue	$	16,259		$	—		$	16,259		$	15,339		$	36		$	15,375		5.75	%
Hotel EBITDA	$	6,561		$	—		$	6,561		$	6,209		$	—		$	6,209		5.67	%
Hotel EBITDA Margin	40.35		%	—			40.35		%	40.48		%	—			40.38		%	-0.03	%
Selected Operating Information:
RevPAR	$	155.10		$	—		$	155.10		$	144.59		$	—		$	144.59		7.27	%
Occupancy	79.39		%	—			79.39		%	80.35		%	—			80.35		%	-1.19	%
ADR	$	195.37		$	—		$	195.37		$	179.94		$	—		$	179.94		8.57	%
SEATTLE MARRIOTT WATERFRONT
Selected Financial Information:
Rooms Revenue	$	27,419		$	—		$	27,419		$	25,044		$	—		$	25,044		9.48	%
Total Revenue	$	36,144		$	—		$	36,144		$	32,103		$	399		$	32,502		11.21	%
Hotel EBITDA	$	14,640		$	—		$	14,640		$	13,016		$	—		$	13,016		12.48	%
Hotel EBITDA Margin	40.50		%	—			40.50		%	40.54		%	—			40.05		%	0.46	%
Selected Operating Information:
RevPAR	$	209.84		$	—		$	209.84		$	191.66		$	—		$	191.66		9.49	%
Occupancy	82.22		%	—			82.22		%	79.67		%	—			79.67		%	3.20	%
ADR	$	255.20		$	—		$	255.20		$	240.56		$	—		$	240.56		6.09	%
ST THOMAS RITZ-CARLTON
Selected Financial Information:
Rooms Revenue	$	2,642		$	26,240		$	28,882		$	—		$	24,213		$	24,213		19.28	%
Total Revenue	$	3,884		$	48,379		$	52,263		$	—		$	45,033		$	45,033		16.05	%
Hotel EBITDA	$	1,489		$	7,667		$	9,156		$	—		$	5,036		$	5,036		81.80	%
Hotel EBITDA Margin	38.34		%	15.85		%	17.52		%	—			11.18		%	11.18		%	6.34	%
Selected Operating Information:
RevPAR	$	863.30		$	418.91		$	439.61		$	—		$	368.54		$	368.54		19.28	%
Occupancy	73.17		%	80.01		%	79.69		%	—			67.89		%	67.89		%	17.38	%
ADR	$	1,179.85		$	523.57		$	551.63		$	—		$	542.82		$	542.82		1.62	%
TAMPA RENAISSANCE
Selected Financial Information:
Rooms Revenue	$	14,625		$	—		$	14,625		$	13,910		$	—		$	13,910		5.14	%
Total Revenue	$	21,934		$	—		$	21,934		$	20,726		$	492		$	21,218		3.37	%
Hotel EBITDA	$	5,855		$	—		$	5,855		$	5,649		$	—		$	5,649		3.65	%
Hotel EBITDA Margin	26.69		%	—			26.69		%	27.26		%	—			26.62		%	0.07	%
Selected Operating Information:
RevPAR	$	136.75		$	—		$	136.75		$	130.07		$	—		$	130.07		5.14	%
Occupancy	77.96		%	—			77.96		%	80.38		%	—			80.38		%	-3.00	%
ADR	$	175.40		$	—		$	175.40		$	161.82		$	—		$	161.82		8.39	%
PRIME PROPERTIES TOTAL (12)
Selected Financial Information:
Rooms Revenue	$	255,443		$	32,154		$	287,597		$	226,495		$	41,250		$	267,745		7.41	%
Total Hotel Revenue	$	349,398		$	57,185		$	406,583		$	307,193		$	73,663		$	380,856		6.76	%
Hotel EBITDA	$	114,535		$	8,721		$	123,256		$	103,287		$	10,279		$	113,566		8.53	%
Hotel EBITDA Margin	32.78		%	15.25		%	30.31		%	33.62		%	13.95		%	29.82		%	0.50	%
Selected Operating Information:
RevPAR	$	186.76		$	432.43		$	199.43		$	171.37		$	346.29		$	185.83		7.32	%
Occupancy	82.32		%	79.67		%	82.19		%	81.62		%	70.12		%	80.67		%	1.88	%
ADR	$	226.87		$	542.81		$	242.66		$	209.96		$	493.85		$	230.36		5.34	%

NOTES:

(1)The above comparable information assumes the twelve hotel properties owned and included in the Company’s operations at December 31, 2015, were owned as of the beginning of each of the periods presented.

(2)All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates

(b) Lease expense was adjusted to reflect additional expense from a below market rate ground lease on the Bardessono Hotel and Spa

(3)See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

FOOTNOTES:

(A)These amounts include immaterial comparability adjustments to conform the Company’s 2014 actual amounts to the industry’s Uniform System of Accounts for the Lodging Industry Eleventh Revised Edition, which became effective January 1, 2015.

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

HOTEL REVENUE & EBITDA FOR TRAILING TWELVE MONTHS

(dollars in thousands)

(unaudited)

THE FOLLOWING SEASONALITY TABLE REFLECTS THE TWELVE HOTELS INCLUDED IN THE COMPANY’S OPERATIONS AT DECEMBER 31, 2015:

	Actual			Pre-acquisition			Comparable			Actual			Pre-acquisition			Comparable			Actual			Pre-acquisition			Comparable			Actual			Pre-acquisition			Comparable
	2015			2015			2015			2015			2015			2015			2015			2015			2015			2015			2015			2015
	4th Quarter			4th Quarter			4th Quarter			3rd Quarter			3rd Quarter			3rd Quarter			2nd Quarter			2nd Quarter			2nd Quarter			1st Quarter			1st Quarter			1st Quarter
Total Hotel Revenue	$	88,124		$	7,706		$	95,830		$	90,725		$	10,597		$	101,322		$	92,800		$	18,719		$	111,519		$	77,749		$	20,163		$	97,912
Hotel EBITDA	$	27,029		$	-1		$	27,028		$	30,081		$	774		$	30,855		$	33,902		$	3,457		$	37,359		$	23,523		$	4,491		$	28,014
Hotel EBITDA Margin	30.67		%	-0.01		%	28.20		%	33.16		%	7.30		%	30.45		%	36.53		%	18.47		%	33.50		%	30.26		%	22.27		%	28.61		%
EBITDA % of Total TTM	23.6		%	0.0		%	21.9		%	26.3		%	8.9		%	25.0		%	29.6		%	39.6		%	30.3		%	20.5		%	51.5		%	22.7		%
JV Interests in EBITDA	$	1,339		$	—		$	1,339		$	1,427		$	—		$	1,427		$	2,513		$	—		$	2,513		$	1,675		$	—		$	1,675
	Actual			Pre-acquisition			Comparable
	2015			2015			2015
	TTM			TTM			TTM
Total Hotel Revenue	$	349,398		$	57,185		$	406,583
Hotel EBITDA	$	114,535		$	8,721		$	123,256
Hotel EBITDA Margin	32.78		%	15.25		%	30.32		%
EBITDA % of Total TTM	100.0		%	100.0		%	100.0		%
JV Interests in EBITDA	$	6,954		$	—		$	6,954

NOTES:

(1)The above comparable information assumes the twelve hotel properties owned and included in the Company’s operations at December 31, 2015, were owned as of the beginning of each of the periods presented.

(2)All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates

(b) Lease expense was adjusted to reflect additional expense from a below market rate ground lease on the Bardessono Hotel and Spa

(3)See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

TOTAL ENTERPRISE VALUE

DECEMBER 31, 2015

(in thousands, except share price)

(unaudited)

	December 31,
	2015
End of quarter common shares outstanding	28,472
Partnership units outstanding (common stock equivalents)	4,375
Combined common shares and partnership units outstanding	32,847
Common stock price at quarter end	$	14.50
Market capitalization at quarter end	$	476,282
Series B convertible preferred stock	$	65,000
Debt on balance sheet date	$	840,232
Joint venture partner’s share of consolidated debt	$	(48,840	)
Net working capital (see below)	$	(168,647	)
Total enterprise value (TEV)	$	1,164,027
Ashford Inc. Investment:
Common stock owned at end of quarter	195
Common stock price at quarter end	$	53.25
Market value of Ashford Inc. investment	$	10,377
Cash and cash equivalents	$	101,623
Restricted cash	31,733
Accounts receivable, net	12,594
Prepaid expenses	2,964
Investment in AIM REHE, LP	48,365
Due from affiliates, net	(5,782		)
Due from third-party hotel managers, net	9,818
Market value of Ashford Inc. investment	10,377
Total current assets	$	211,693
Accounts payable, net & accrued expenses	$	39,607
Dividends payable	3,439
Total current liabilities	$	43,046
Net working capital*	$	168,647

* Includes the Company’s pro rata share of net working capital in joint ventures.

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

Anticipated Capital Expenditures Calendar (a)

		2015				Proposed 2016
	Rooms	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter
		Actual	Actual	Actual	Actual	Estimated	Estimated	Estimated	Estimated
Courtyard Seattle	250	x
Hilton La Jolla Torrey Pines	394			x
Renaissance Tampa	293			x
Courtyard San Francisco	405							x
Marriott Seattle Waterfront	358								x

(a) Only hotels which have had or are expected to have significant capital expenditures that could result in displacement in 2015-2016 are included in this table.

Exhibit 1

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)

	Three Months Ended December 31, 2015
	Capital  Hilton  Washington DC			La Jolla  Hilton  Torrey Pines			Chicago  Sofitel  Water  Tower			Bardessono  Hotel & Spa		Key West  Pier House Resort			Philadelphia  Courtyard  Downtown			Plano  Marriott  Legacy Town Center		San  Francisco  Courtyard  Downtown			Seattle  Courtyard  Downtown			Seattle  Marriott  Waterfront			St. Thomas  Ritz- Carlton			Tampa  Renaissance		Hotel Total			Corporate /  Allocated			Ashford  Hospitality  Prime, Inc.
Net income (loss)	$	1,312		$	1,002		$	(223	)	$	461	$	1,757		$	1,286		$	1,486	$	2,435		$	779		$	1,797		$	1,032		$	564	$	13,688		$	(19,796	)	$	(6,108	)
Income from consolidated entities attributable to noncontrolling interests	(358		)	(274		)	—			—		—			—			—		—			—			—			—			—		(632		)	(714		)	(1,346		)
Net loss attributable to redeemable noncontrolling interests in operating partnership	—			—			—			—		—			—			—		—			—			—			—			—		—			1,064			1,064
Net income (loss) attributable to the Company	954			728			(223		)	461		1,757			1,286			1,486		2,435			779			1,797			1,032			564		13,056			(19,446		)	(6,390		)
Non-property adjustments	(21		)	2			1			—		—			—			—		—			(1		)	—			5			—		(14		)	14			—
Interest Income	—			(2		)	—			—		—			(1		)	—		(3		)	—			(2		)	(1		)	—		(9		)	(4		)	(13		)
Interest expense	—			—			516			—		—			505			—		—			—			—			104			—		1,125			7,904			9,029
Amortization of loan cost	—			—			176			—		—			8			—		—			—			—			10			—		194			546			740
Depreciation and amortization	1,562			1,499			1,584			578		662			1,448			1,035		578			533			976			114			871		11,440			—			11,440
Income tax expense (benefit)	69			(196		)	—			—		—			4			—		—			—			—			37			—		(86		)	(22		)	(108		)
Non-Hotel EBITDA ownership expense	113			16			39			154		(35		)	2			47		3			17			148			188			1		693			(693		)	—
(Income) loss from consolidated entities attributable to noncontrolling interests	356			274			—			—		—			—			—		—			—			—			—			—		630			(630		)	—
EBITDA including amounts attributable to noncontrolling interest	3,033			2,321			2,093			1,193		2,384			3,252			2,568		3,013			1,328			2,919			1,489			1,436		27,029			(12,331		)	14,698
Less: EBITDA adjustments attributable to non-controlling interest	(360		)	(351		)	—			—		—			—			—		—			—			—			—			—		(711		)	(384		)	(1,095		)
Net income (loss) attributable to redeemable noncontrolling interest in operating partnership	—			—			—			—		—			—			—		—			—			—			—			—		—			(1,064		)	(1,064		)
EBITDA attributable to the Company and OP unitholders	$	2,673		$	1,970		$	2,093		$	1,193	$	2,384		$	3,252		$	2,568	$	3,013		$	1,328		$	2,919		$	1,301		$	1,436	$	26,318		$	(13,779	)	$	12,539
Pre-acquisition Hotel EBITDA	—			—			—			—		—			—			—		—			—			—			(1		)	—		(1		)
Comparable Hotel EBITDA	$	3,033		$	2,321		$	2,093		$	1,193	$	2,384		$	3,252		$	2,568	$	3,013		$	1,328		$	2,919		$	1,488		$	1,436	$	27,028

NOTES:

(1)The above comparable information assumes the twelve hotel properties owned and included in the Company’s operations at December 31, 2015, were owned as of the beginning of each of the periods presented.

(2)All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates

(b) Lease expense was adjusted to reflect additional expense from a below market rate ground lease on the Bardessono Hotel and Spa

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)

	Three Months Ended December 31, 2014
	Capital Hilton  Washington DC			La Jolla  Hilton  Torrey Pines			Chicago  Sofitel  Water  Tower			Bardessono  Hotel & Spa		Key West  Pier House  Resort		Philadelphia Courtyard  Downtown			Plano  Marriott  Legacy Town  Center			San  Francisco  Courtyard  Downtown			Seattle  Courtyard  Downtown			Seattle  Marriott  Waterfront			St. Thomas Ritz-Carlton		Tampa  Renaissance			Hotel Total			Corporate / Allocated			Ashford  Hospitality  Prime, Inc.
Net income (loss)	$	1,467		$	543		$	674		$	—	$	1,604	$	984		$	1,548		$	2,575		$	774		$	1,528		$	—	$	673		$	12,370		$	(13,295	)	$	(925	)
Income from consolidated entities attributable to noncontrolling interests	(394		)	(159		)	—			—		—		—			—			—			—			—			—		—			(553		)	(1,291		)	(1,844		)
Net loss attributable to redeemable noncontrolling interests in operating partnership	—			—			—			—		—		—			—			—			—			—			—		—			—			717			717
Net income (loss) attributable to the Company	1,073			384			674			—		1,604		984			1,548			2,575			774			1,528			—		673			11,817			(13,869		)	(2,052		)
Non-property adjustments	(12		)	1			(1		)	—		—		—			1			—			(11		)	1			—		(1		)	(22		)	22			—
Interest Income	2			(1		)	—			—		—		—			(1		)	(3		)	—			(2		)	—		(1		)	(6		)	(1		)	(7		)
Interest expense	—			—			502			—		—		512			—			—			—			—			—		—			1,014			8,358			9,372
Amortization of loan cost	—			—			166			—		—		8			—			—			—			—			—		—			174			326			500
Depreciation and amortization	1,813			1,474			1,557			—		622		1,463			1,002			558			496			986			—		579			10,550			—			10,550
Income tax expense	28			129			—			—		—		3			—			—			—			—			—		—			160			315			475
Non-Hotel EBITDA ownership expense	252			15			1			—		8		(4		)	6			1			—			8			—		1			288			(288		)	—
(Income) loss from consolidated entities attributable to noncontrolling interests	393			159			—			—		—		—			—			—			—			—			—		—			552			(552		)	—
EBITDA including amounts attributable to noncontrolling interest	3,549			2,161			2,899			—		2,234		2,966			2,556			3,131			1,259			2,521			—		1,251			24,527			(5,689		)	18,838
Less: EBITDA adjustments attributable to non-controlling interest	(428		)	(345		)	—			—		—		—			—			—			—			—			—		—			(773		)	(419		)	(1,192		)
Net income (loss) attributable to redeemable noncontrolling interest in operating partnership	—			—			—			—		—		—			—			—			—			—			—		—			—			(717		)	(717		)
EBITDA attributable to the Company and OP unitholders	$	3,121		$	1,816		$	2,899		$	—	$	2,234	$	2,966		$	2,556		$	3,131		$	1,259		$	2,521		$	—	$	1,251		$	23,754		$	(6,825	)	$	16,929
Pre-acquisition Hotel EBITDA (A)	—			—			—			902		—		—			—			—			—			—			378		—			1,280
Comparable Hotel EBITDA	$	3,549		$	2,161		$	2,899		$	902	$	2,234	$	2,966		$	2,556		$	3,131		$	1,259		$	2,521		$	378	$	1,251		$	25,807

NOTES:

(1)The above comparable information assumes the twelve hotel properties owned and included in the Company’s operations at December 31, 2015, were owned as of the beginning of each of the periods presented.

(2)All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates

(b) Lease expense was adjusted to reflect additional expense from a below market rate ground lease on the Bardessono Hotel and Spa

FOOTNOTES:

(A)Pre-acquisition Hotel EBITDA amounts include immaterial adjustments to conform the Company’s 2014 actual amounts to the industry’s Uniform System of Accounts for the Lodging Industry Eleventh Revised Edition, which became effective January 1, 2015.

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)

	Year Ended December 31, 2015
	Capital  Hilton  Washington DC			La Jolla  Hilton  Torrey Pines			Chicago  Sofitel  Water  Tower			Bardessono  Hotel & Spa		Key West  Pier House  Resort			Philadelphia  Courtyard  Downtown			Plano  Marriott  Legacy Town  Center			San  Francisco  Courtyard  Downtown			Seattle  Courtyard  Downtown			Seattle  Marriott  Waterfront			St. Thomas Ritz-Carlton		Tampa  Renaissance			Hotel Total			Corporate / Allocated			Ashford  Hospitality  Prime, Inc.
Net income (loss)	$	8,222		$	6,684		$	(714	)	$	1,358	$	7,124		$	4,691		$	6,854		$	11,415		$	4,453		$	10,441		$	1,032	$	2,820		$	64,380		$	(69,071	)	$	(4,691	)
(Income) loss from consolidated entities attributable to noncontrolling interests	(2,173		)	(1,766		)	—			—		—			—			—			—			—			—			—		—			(3,939		)	1,525			(2,414		)
Net loss attributable to redeemable noncontrolling interests in operating partnership	—			—			—			—		—			—			—			—			—			—			—		—			—			393			393
Net income (loss) attributable to the Company	6,049			4,918			(714		)	1,358		7,124			4,691			6,854			11,415			4,453			10,441			1,032		2,820			60,441			(67,153		)	(6,712		)
Non-property adjustments	(19		)	—			(1		)	1		—			—			—			1			(1		)	(2		)	4		1			(16		)	16			—
Interest Income	(1		)	(2		)	—			—		—			(2		)	(1		)	(13		)	—			(7		)	—		(2		)	(28		)	(6		)	(34		)
Interest expense	—			—			2,022			—		—			2,013			—			—			—			—			104		—			4,139			31,115			35,254
Amortization of loan cost	—			—			698			—		—			32			—			—			—			—			10		—			740			1,835			2,575
Depreciation and amortization	6,524			5,819			6,296			1,177		2,629			5,761			4,109			2,278			2,091			4,004			114		3,022			43,824			—			43,824
Income tax expense (benefit)	69			(25		)	—			—		—			16			—			—			—			—			37		—			97			166			263
Non-Hotel EBITDA ownership expense	502			45			59			255		(25		)	7			125			7			18			204			188		14			1,399			(1,399		)	—
(Income) loss from consolidated entities attributable to noncontrolling interests	2,173			1,766			—			—		—			—			—			—			—			—			—		—			3,939			(3,939		)	—
EBITDA including amounts attributable to noncontrolling interest	15,297			12,521			8,360			2,791		9,728			12,518			11,087			13,688			6,561			14,640			1,489		5,855			114,535			(39,365		)	75,170
Less: EBITDA adjustments attributable to non-controlling interest	(1,513		)	(1,360		)	—			—		—			—			—			—			—			—			—		—			(2,873		)	(1,521		)	(4,394		)
Net income (loss) attributable to redeemable noncontrolling interest in operating partnership	—			—			—			—		—			—			—			—			—			—			—		—			—			(393		)	(393		)
EBITDA attributable to the Company and OP unitholders	$	13,784		$	11,161		$	8,360		$	2,791	$	9,728		$	12,518		$	11,087		$	13,688		$	6,561		$	14,640		$	1,489	$	5,855		$	111,662		$	(41,279	)	$	70,383
Pre-acquisition Hotel EBITDA	—			—			—			1,054		—			—			—			—			—			—			7,667		—			8,721
Comparable Hotel EBITDA	$	15,297		$	12,521		$	8,360		$	3,845	$	9,728		$	12,518		$	11,087		$	13,688		$	6,561		$	14,640		$	9,156	$	5,855		$	123,256
ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES HOTEL EBITDA BY LOAN POOL (in thousands) (unaudited)
GACC Sofitel - 1 hotel	$	—		$	—		$	8,360		$	—	$	—		$	—		$	—		$	—		$	—		$	—		$	—	$	—		$	8,360
Credit Agricole Pier House - 1 hotel	—			—			—			—		9,728			—			—			—			—			—			—		—			9,728
Wachovia Philly CY - 1 hotel	—			—			—			—		—			12,518			—			—			—			—			—		—			12,518
Wachovia 3 - 2 hotels	—			—			—			—		—			—			—			13,688			6,561			—			—		—			20,249
Wachovia 7 - 3 hotels	—			—			—			—		—			—			11,087			—			—			14,640			—		5,855			31,582
Column Financial - 1 hotel	—			—			—			3,845		—			—			—			—			—			—			—		—			3,845
Apollo - 1 hotel	—			—			—			—		—			—			—			—			—			—			9,156		—			9,156
Aareal - 2 hotels	15,297			12,521			—			—		—			—			—			—			—			—			—		—			27,818
Total	$	15,297		$	12,521		$	8,360		$	3,845	$	9,728		$	12,518		$	11,087		$	13,688		$	6,561		$	14,640		$	9,156	$	5,855		$	123,256

NOTES:

(1)The above comparable information assumes the twelve hotel properties owned and included in the Company’s operations at December 31, 2015, were owned as of the beginning of each of the periods presented.

(2)All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates

(b) Lease expense was adjusted to reflect additional expense from a below market rate ground lease on the Bardessono Hotel and Spa

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)

	Year Ended December 31, 2014
	Capital  Hilton  Washington  DC			La Jolla  Hilton  Torrey Pines			Chicago  Sofitel  Water  Tower			Bardessono  Hotel & Spa		Key West  Pier House  Resort		Philadelphia  Courtyard  Downtown			Plano  Marriott  Legacy Town  Center			San  Francisco  Courtyard  Downtown			Seattle  Courtyard  Downtown			Seattle  Marriott  Waterfront			St. Thomas  Ritz-Carlton		Tampa  Renaissance			Hotel Total			Corporate / Allocated			Ashford  Hospitality  Prime, Inc.
Net income (loss)	$	6,855		$	4,454		$	3,877		$	—	$	4,682	$	3,489		$	5,828		$	10,857		$	4,138		$	9,092		$	—	$	3,398		$	56,670		$	(53,132	)	$	3,538
(Income) loss from consolidated entities attributable to noncontrolling interests	(1,819		)	(1,207		)	—			—		—		—			—			—			—			—			—		—			(3,026		)	1,923			(1,103		)
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership	—			—			—			—		—		—			—			—			—			—			—		—			—			(496		)	(496		)
Net income (loss) attributable to the Company	5,036			3,247			3,877			—		4,682		3,489			5,828			10,857			4,138			9,092			—		3,398			53,644			(51,705		)	1,939
Non-property adjustments	(11		)	(1		)	—			—		—		—			—			—			(11		)	—			—		—			(23		)	23			—
Interest Income	1			(2		)	—			—		—		(1		)	(3		)	(8		)	(1		)	(6		)	—		(3		)	(23		)	(3		)	(26		)
Interest expense	—			—			1,696			—		—		2,041			—			—			—			—			—		—			3,737			33,466			37,203
Amortization of loan cost	—			—			564			—		—		32			—			—			—			—			—		—			596			1,232			1,828
Depreciation and amortization	7,592			5,976			5,182			—		1,999		5,705			3,934			2,196			1,957			3,895			—		2,249			40,685			1			40,686
Income tax expense	51			483			—			—		—		15			—			—			—			—			—		—			549			548			1,097
Non-Hotel EBITDA ownership expense	695			32			15			—		20		31			117			20			126			35			—		5			1,096			(1,096		)	—
(Income) loss from consolidated entities attributable to noncontrolling interests	1,819			1,207			—			—		—		—			—			—			—			—			—		—			3,026			(3,026		)	—
EBITDA including amounts attributable to noncontrolling interest	15,183			10,942			11,334			—		6,701		11,312			9,876			13,065			6,209			13,016			—		5,649			103,287			(20,560		)	82,727
Less: EBITDA adjustments attributable to non-controlling interest	(1,794		)	(1,400		)	—			—		—		—			—			—			—			—			—		—			(3,194		)	(1,842		)	(5,036		)
Net income (loss) attributable to redeemable noncontrolling interest in operating partnership	—			—			—			—		—		—			—			—			—			—			—		—			—			496			496
EBITDA attributable to the Company and OP unitholders	$	13,389		$	9,542		$	11,334		$	—	$	6,701	$	11,312		$	9,876		$	13,065		$	6,209		$	13,016		$	—	$	5,649		$	100,093		$	(21,906	)	$	78,187
Pre-acquisition Hotel EBITDA (A)	—			—			(428		)	3,733		1,938		(1		)	—			1			—			—			5,036		—			10,279
Comparable Hotel EBITDA	$	15,183		$	10,942		$	10,906		$	3,733	$	8,639	$	11,311		$	9,876		$	13,066		$	6,209		$	13,016		$	5,036	$	5,649		$	113,566

NOTES:

(1)The above comparable information assumes the twelve hotel properties owned and included in the Company’s operations at December 31, 2015, were owned as of the beginning of each of the periods presented.

(2)All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates

(b) Lease expense was adjusted to reflect additional expense from a below market rate ground lease on the Bardessono Hotel and Spa

FOOTNOTES:

(A)Pre-acquisition Hotel EBITDA amounts include immaterial adjustments to conform the Company’s 2014 actual amounts to the industry’s Uniform System of Accounts for the Lodging Industry Eleventh Revised Edition, which became effective January 1, 2015.

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME TO HOTEL EBITDA

(in thousands)

(unaudited)

	2015			2015			2015			2015			2015
	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter			TTM
Net income	$	11,356		$	22,022		$	17,314		$	13,688		$	64,380
Income from consolidated entities attributable to noncontrolling interests	(830		)	(1,778		)	(699		)	(632		)	(3,939		)
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership	—			—			—			—			—
Net income attributable to the Company	10,526			20,244			16,615			13,056			60,441
Non-property adjustments	(1		)	(1		)	—			(14		)	(16		)
Interest income	(4		)	(4		)	(11		)	(9		)	(28		)
Interest expense	993			1,005			1,016			1,125			4,139
Amortization of loan cost	181			182			183			194			740
Depreciation and amortization	10,517			10,559			11,308			11,440			43,824
Income tax expense (benefit)	71			102			10			(86		)	97
Non-Hotel EBITDA ownership expense	409			36			261			693			1,399
Income from consolidated entities attributable to noncontrolling interests	831			1,779			699			630			3,939
Hotel EBITDA including amounts attributable to noncontrolling interest	23,523			33,902			30,081			27,029			114,535
Pre-acquisition Hotel EBITDA	4,491			3,457			774			(1		)	8,721
Comparable Hotel EBITDA	$	28,014		$	37,359		$	30,855		$	27,028		$	123,256

NOTES:

(1)The above comparable information assumes the twelve hotel properties owned and included in the Company’s operations at December 31, 2015, were owned as of the beginning of each of the periods presented.

(2)All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates

(b) Lease expense was adjusted to reflect additional expense from a below market rate ground lease on the Bardessono Hotel and Spa

Appendix B

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

(unaudited)

	December 31,			December 31,
	2015			2014
ASSETS
Cash and cash equivalents	$	105,039		$	171,439
Investments in hotel properties, net	1,091,479			990,303
Restricted cash	33,135			29,646
Accounts receivable, net of allowance of $68 and $47, respectively	13,370			12,382
Inventories	1,451			696
Note receivable	8,098			8,098
Deferred costs, net	755			1,204
Prepaid expenses	3,132			2,422
Investment in AIM REHE Fund	48,365			—
Investment in Ashford Inc., at fair value	10,377			—
Derivative assets	753			35
Other assets	2,543			1,193
Intangible asset, net	23,160			2,542
Due from related party, net	371			541
Due from third-party hotel managers	10,722			5,504
Total assets	$	1,352,750		$	1,226,005
LIABILITIES AND EQUITY
Liabilities:
Indebtedness, net	$	835,592		$	761,727
Accounts payable and accrued expenses	43,568			29,273
Dividends payable	3,439			1,425
Unfavorable management contract liabilities	158			316
Due to Ashford Trust OP, net	528			896
Due to Ashford Inc.	6,369			2,546
Due to third-party hotel managers	1,158			954
Intangible liability, net	3,682			3,739
Other liabilities	1,181			1,131
Total liabilities	895,675			802,007
5.50% Series B cumulative convertible preferred stock, $0.01 par value, 2,600,000 shares issued and outstanding at December 31, 2015	62,248			—
Redeemable noncontrolling interests in operating partnership	61,781			149,555
Equity:
Common stock, $0.01 par value, 200,000,000 shares authorized, 28,471,775 and 24,464,163 shares issued and outstanding at December 31, 2015 and December 31, 2014, respectively	285			245
Additional paid-in capital	435,660			375,063
Accumulated deficit	(97,086		)	(96,404		)
Total stockholders’ equity of the Company	338,859			278,904
Noncontrolling interest in consolidated entities	(5,813		)	(4,461		)
Total equity	333,046			274,443
Total liabilities and equity	$	1,352,750		$	1,226,005

- MORE -

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2015			2014			2015			2014
REVENUE
Rooms	$	62,575		$	55,011		$	255,443		$	226,495
Food and beverage	21,526			18,366			79,894			67,854
Other	4,023			3,350			14,061			12,844
Total hotel revenue	88,124			76,727			349,398			307,193
Other	36			24			147			115
Total revenue	88,160			76,751			349,545			307,308
EXPENSES
Hotel operating expenses
Rooms	14,446			13,072			56,341			51,636
Food and beverage	14,609			11,920			53,535			44,297
Other expenses	24,337			20,515			93,742			80,593
Management fees	3,485			3,117			14,049			12,525
Total hotel operating expenses	56,877			48,624			217,667			189,051
Property taxes, insurance and other	4,736			4,047			18,517			16,174
Depreciation and amortization	11,440			10,550			43,824			40,686
Advisory services fee:
Base advisory fee	2,218			2,281			8,747			8,739
Incentive fee	3,822			—			3,822			—
Reimbursable expenses	326			433			1,727			1,690
Non-cash stock/unit-based compensation	1,747			564			3,593			2,105
Transaction costs	283			—			538			1,871
Corporate, general and administrative:
Non-cash stock/unit-based compensation	—			—			254			246
Other general and administrative	1,324			789			4,880			2,996
Total operating expenses	82,773			67,288			303,569			263,558
OPERATING INCOME	5,387			9,463			45,976			43,750
Equity in earnings (loss) of unconsolidated entity	1,292			—			(2,927		)	—
Interest income	13			7			34			27
Other income	—			—			1,233			—
Interest expense	(9,029		)	(9,372		)	(35,254		)	(37,203		)
Amortization of loan costs	(740		)	(500		)	(2,575		)	(1,828		)
Write-off of loan costs and exit fees	—			—			(54		)	—
Unrealized loss on investments	(1,988		)	—			(7,609		)	—
Unrealized loss on derivatives	(1,151		)	(48		)	(3,252		)	(111		)
INCOME (LOSS) BEFORE INCOME TAXES	(6,216		)	(450		)	(4,428		)	4,635
Income tax (expense) benefit	108			(475		)	(263		)	(1,097		)
NET INCOME (LOSS)	(6,108		)	(925		)	(4,691		)	3,538
Income from consolidated entities attributable to noncontrolling interest	(1,346		)	(1,844		)	(2,414		)	(1,103		)
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership	1,064			717			393			(496		)
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY	(6,390		)	(2,052		)	(6,712		)	1,939
Preferred dividends	(893		)	—			(1,986		)	—
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS	$	(7,283	)	$	(2,052	)	$	(8,698	)	$	1,939
INCOME (LOSS) PER SHARE — BASIC AND DILUTED
Basic:
Net income (loss) attributable to common stockholders	$	(0.26	)	$	(0.08	)	$	(0.34	)	$	0.08
Weighted average common shares outstanding — basic	28,331			24,954			25,888			24,473
Diluted:
Net income (loss) attributable to common stockholders	$	(0.26	)	$	(0.08	)	$	(0.34	)	$	0.07
Weighted average common shares outstanding — diluted	28,331			24,954			25,888			33,325
Dividends declared per common share:	$	0.10		$	0.05		$	0.35		$	0.20
Amounts attributable to common stockholders:
Net income (loss) attributable to the Company	$	(6,390	)	$	(2,052	)	$	(6,712	)	$	1,939
Preferred dividends	(893		)	—			(1,986		)	—
Net income (loss) attributable to common stockholders	$	(7,283	)	$	(2,052	)	$	(8,698	)	$	1,939

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ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA

(in thousands)
(unaudited)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2015			2014			2015			2014
Net income (loss)	$	(6,108	)	$	(925	)	$	(4,691	)	$	3,538
Income from consolidated entities attributable to noncontrolling interest	(1,346		)	(1,844		)	(2,414		)	(1,103		)
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership	1,064			717			393			(496		)
Net income (loss) attributable to the Company	(6,390		)	(2,052		)	(6,712		)	1,939
Interest income	(13		)	(7		)	(34		)	(26		)
Interest expense and amortization of loan costs	9,385			9,452			36,309			37,188
Depreciation and amortization	10,729			9,778			40,950			37,493
Income tax expense	(108		)	475			263			1,097
Net income (loss) attributable to redeemable noncontrolling interests in operating partnership	(1,064		)	(717		)	(393		)	496
Company’s portion of EBITDA of Ashford Inc.	276			—			402			—
EBITDA available to common stockholders and OP unitholders	12,815			16,929			70,785			78,187
Amortization of unfavorable management contract liabilities	(39		)	(39		)	(158		)	(158		)
Write-off of loan costs and exit fees	—			—			54			—
Transaction costs	378			—			633			1,871
Gain on insurance settlements	(21		)	(23		)	(21		)	(23		)
Unrealized loss on investments	1,988			—			7,609			—
Unrealized loss on derivatives	1,151			48			3,248			111
Other income (1)	—			—			(1,233		)	—
Compensation adjustment related to modified employment terms	—			—			—			573
Non-cash, non-employee stock/unit-based compensation	1,747			560			3,847			1,778
Strategic alternatives and other deal costs	61			—			973			—
Incentive fee	3,822			—			3,822			—
Company’s portion of adjustments to EBITDA of Ashford Inc.	153			—			251			—
Company’s portion of unrealized (gain) loss of AIM REHE Fund	(1,292		)	—			2,927			—
Adjusted EBITDA available to common stockholders and OP unitholders	$	20,763		$	17,475		$	92,737		$	82,339

(1) Other income, primarily consisting of net realized gain on marketable securities is excluded from Adjusted EBITDA.

RECONCILIATION OF NET INCOME (LOSS) TO FUNDS FROM OPERATIONS (“FFO”) AND ADJUSTED FFO

(in thousands, except per share amounts)
(unaudited)

	Three Months Ended December 31,						Year Ended December 31,
	2015			2014			2015			2014
Net income (loss)	$	(6,108	)	$	(925	)	$	(4,691	)	$	3,538
Income from consolidated entities attributable to noncontrolling interest	(1,346		)	(1,844		)	(2,414		)	(1,103		)
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership	1,064			717			393			(496		)
Preferred dividends	(893		)	—			(1,986		)	—
Net income (loss) attributable to common stockholders	(7,283		)	(2,052		)	(8,698		)	1,939
Depreciation and amortization on real estate	10,729			9,778			40,950			37,493
Company’s portion of FFO of Ashford Inc.	197			—			266			—
Net income (loss) attributable to redeemable noncontrolling interests in operating partnership	(1,064		)	(717		)	(393		)	496
FFO available to common stockholders and OP unitholders	2,579			7,009			32,125			39,928
Preferred dividends	893			—			1,986			—
Unrealized loss on investments	1,988			—			7,609			—
Unrealized loss on derivatives	1,151			48			3,248			111
Other income (1)	—			—			(1,233		)	—
Transaction costs	378			—			633			1,871
Gain on insurance settlements	(21		)	(23		)	(21		)	(23		)
Strategic alternatives and other deal costs	61			—			973			—
Compensation adjustment related to modified employment terms	—			—			—			573
Write-off of loan costs and exit fees	—			—			54			—
Incentive fee	3,822			—			3,822			—
Company’s portion of adjustments to FFO of Ashford Inc.	(174		)	—			(264		)	—
Company’s portion of unrealized (gain) loss of AIM REHE Fund	(1,292		)	—			2,927			—
Adjusted FFO available to the Company and OP unitholders	$	9,385		$	7,034		$	51,859		$	42,460
Adjusted FFO per diluted share available to common stockholders and OP unitholders	$	0.26		$	0.21		$	1.50		$	1.27
Weighted average diluted shares	36,091			34,068			34,542			33,421

(1) Other income, primarily consisting of net realized gain/loss on marketable securities is excluded from Adjusted FFO.

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ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

SUMMARY OF INDEBTEDNESS

DECEMBER 31, 2015
(dollars in thousands)
(unaudited)

												Pro Forma		Pro Forma
			Fixed-Rate			Floating-Rate			Total			TTM Hotel		TTM EBITDA
Indebtedness	Maturity	Interest Rate	Debt			Debt			Debt			EBITDA (5)		Debt Yield
GACC Sofitel - 1 hotel	March 2016	LIBOR + 2.30%	$	—		$	80,000	(3)	$	80,000		$	8,360	10.5	%
Senior credit facility - Various	November 2016	LIBOR + 2.25% to 3.75%	—			—		(1)	—			N/A		N/A
Credit Agricole Pier House - 1 hotel	March 2017	LIBOR + 2.25% to 2.50%	—			70,000		(2)	70,000			9,728		13.9	%
Wachovia Philly CY - 1 hotel	April 2017	5.91%	33,381			—			33,381			12,518		37.5	%
Wachovia 3 - 2 hotels	April 2017	5.95%	122,374			—			122,374			20,249		16.5	%
Wachovia 7 - 3 hotels	April 2017	5.95%	249,020			—			249,020			31,582		12.7	%
Column Financial - 1 hotel	December 2017	LIBOR + 4.95%	—			40,000		(3)	40,000			3,845		9.6	%
Apollo - 1 hotel	December 2017	LIBOR + 4.95%	—			42,000		(3)	42,000			8,968		21.4	%
TIF Philly CY - 1 hotel	June 2018	12.85%	8,098			—			8,098			N/A		N/A
Aareal - 2 hotels	November 2019	LIBOR + 2.65%	—			195,359		(4)	195,359			27,818		14.2	%
Total			$	412,873		$	427,359		$	840,232		$	123,068	14.6	%
Percentage			49.1		%	50.9		%	100.0		%
Weighted average interest rate			6.08		%	3.39		%	4.71		%

All indebtedness is non-recourse with the exception of the senior credit facility.

(1)    This credit facility has two one-year extension options subject to advance notice, certain conditions and a 0.25% extension fee beginning November 2016.

(2)     On March 7, 2015, we refinanced our $69.0 million mortgage loan due September 2015 with a $70.0 million loan due March 2017 with three one-year extension options.  The new loan provides for a floating interest rate of LIBOR + 2.25%.

(3)    This mortgage loan has three one-year extension options subject to satisfaction of certain conditions.

(4)    This mortgage loan has two one-year extension options subject to satisfaction of certain conditions.

(5)    See Exhibit 1 for reconciliation of net loss to hotel EBITDA.

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ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
INDEBTEDNESS BY MATURITY ASSUMING EXTENSION OPTIONS ARE EXERCISED

DECEMBER 31, 2015

(in thousands)

(unaudited)

	2016		2017		2018		2019		2020		Thereafter		Total
Senior credit facility - Various	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Wachovia Philly CY - 1 hotel	—		32,532		—		—		—		—		32,532
Wachovia 3 - 2 hotels	—		119,245		—		—		—		—		119,245
Wachovia 7 - 3 hotels	—		242,202		—		—		—		—		242,202
TIF Philly CY - 1 hotel	—		—		8,098		—		—		—		8,098
GACC Sofitel - 1 hotel	—		—		—		80,000		—		—		80,000
Credit Agricole Pier House - 1 hotel	—		—		—		—		70,000		—		70,000
Column Financial - 1 hotel	—		—		—		—		40,000		—		40,000
Apollo - 1 hotel	—		—		—		—		42,000		—		42,000
Aareal - 2 hotels	—		—		—		—		—		177,486		177,486
Principal due in future periods	$	—	$	393,979	$	8,098	$	80,000	$	152,000	$	177,486	$	811,563
Scheduled amortization payments remaining	8,856		7,526		2,939		3,120		3,312		2,916		28,669
Total indebtedness	$	8,856	$	401,505	$	11,037	$	83,120	$	155,312	$	180,402	$	840,232

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ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

KEY PERFORMANCE INDICATORS - PRO FORMA

(unaudited)

	Three Months Ended								Year Ended
	December 31,								December 31,
	2015			2014			% Variance		2015			2014			% Variance
ALL HOTELS:
Rooms revenue (in thousands)	$	66,340		$	63,499		4.47	%	$	287,597		$	267,745		7.41	%
RevPAR	$	182.46		$	174.78		4.39	%	$	199.43		$	185.83		7.32	%
Occupancy	78.34		%	78.03		%	0.40	%	82.19		%	80.67		%	1.88	%
ADR	$	232.91		$	224.00		3.98	%	$	242.66		$	230.36		5.34	%

NOTES:

(1)The above pro forma information assumes the twelve hotel properties owned and included in the Company’s operations at December 31, 2015, were owned as of the beginning of each of the periods presented.

(2)All pre-acquisition information was obtained by the applicable seller and has not been audited or reviewed. Adjustments have been made to the pre-acquisition results as indicated below:

(a)Management fee expense was adjusted to reflect current contractual rates.

(b)Lease expense was adjusted to reflect additional expense from a below market rate ground lease on the Bardessono Hotel and Spa.

(3) See Exhibit 2 for reconciliation of actual key performance indicators to pro forma key performance indicators.

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ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
PRO FORMA HOTEL OPERATING PROFIT
(dollars in thousands)
(unaudited)

ALL HOTELS:

	Three Months Ended								Year Ended
	December 31,								December 31,
	2015			2014			% Variance		2015			2014			% Variance
REVENUE
Rooms	$	66,340		$	63,499		4.5	%	$	287,597		$	267,745		7.4	%
Food and beverage	24,062			23,004			4.6	%	96,230			90,667			6.1	%
Other	5,428			5,432			-0.1	%	22,756			22,444			1.4	%
Total hotel revenue	95,830			91,935			4.2	%	406,583			380,856			6.8	%
EXPENSES
Rooms	15,768			15,099			4.4	%	65,223			61,494			6.1	%
Food and beverage	17,104			16,576			3.2	%	68,149			65,048			4.8	%
Other direct	2,112			2,231			-5.3	%	8,433			9,269			-9.0	%
Indirect	24,293			23,444			3.6	%	98,252			92,898			5.8	%
Management fees, includes base and incentive fees	4,807			4,341			10.7	%	23,716			20,204			17.4	%
Total hotel operating expenses	64,084			61,691			3.9	%	263,773			248,913			6.0	%
Property taxes, insurance, and other	4,906			4,437			10.6	%	19,742			18,377			7.4	%
HOTEL OPERATING PROFIT (Hotel EBITDA)	26,840			25,807			4.0	%	123,068			113,566			8.4	%
Hotel EBITDA Margin	28.01		%	28.07		%	-0.06	%	30.27		%	29.82		%	0.45	%
Minority interest in earnings of consolidated joint ventures	1,339			1,427			-6.2	%	6,954			6,531			6.5	%
HOTEL OPERATING PROFIT (Hotel EBITDA), excluding minority interest in joint ventures	$	25,501		$	24,380		4.6	%	$	116,114		$	107,035		8.5	%

NOTES:

(1) The above pro forma information assumes the twelve hotel properties owned and included in the Company’s operations at December 31, 2015, were owned as of the beginning of each of the periods presented.

(2) All pre-acquisition information was obtained by the applicable seller and has not been audited or reviewed. Adjustments have been made to the pre-acquisition results as indicated below:

(a)Management fee expense was adjusted to reflect current contractual rates.

(b)Lease expense was adjusted to reflect additional expense from a below market rate ground lease on the Bardessono Hotel and Spa.

(3) See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

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ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
PRO FORMA HOTEL OPERATING PROFIT MARGIN
(unaudited)

THE FOLLOWING EBITDA MARGIN TABLE REFLECTS THE TWELVE HOTELS INCLUDED IN THE COMPANY’S OPERATIONS AT DECEMBER 31, 2015:

	All Hotels
HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN:
4th Quarter 2015	28.01	%
4th Quarter 2014	28.07	%
Variance	-0.06	%
HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN VARIANCE BREAKDOWN:
Rooms	-0.03	%
Food & Beverage and Other Departmental	0.40	%
Administrative & General	0.32	%
Sales & Marketing	-0.28	%
Hospitality	0.00	%
Repair & Maintenance	0.19	%
Energy	0.20	%
Franchise Fee	0.00	%
Management Fee	-0.03	%
Incentive Management Fee	-0.26	%
Insurance	-0.05	%
Property Taxes	-0.24	%
Other Taxes	0.00	%
Leases/Other	-0.28	%
Total	-0.06	%

NOTES:

(1) The above pro forma information assumes the twelve hotel properties owned and included in the Company’s operations at December 31,2015, were owned as of the beginning of each of the periods presented.

(2) All pre-acquisition information was obtained by the applicable seller and has not been audited or reviewed.

Adjustments have been made to the pre-acquisition results as indicated below:

(a)Management fee expense was adjusted to reflect current contractual rates.

(b)Lease expense was adjusted to reflect additional expense from a below market rate ground lease on the Bardessono Hotel and Spa.

(3) See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

(4) See Exhibit 2 for reconciliation of actual hotel operating profit margin to pro forma hotel operating profit margin.

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ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
SELECTED PROFORMA FINANCIAL AND OPERATING INFORMATION BY PROPERTY
(in thousands, except operating information)
(unaudited)

THE FOLLOWING TABLE PRESENTS SELECTED FINANCIAL AND REPORTING INFORMATION BY PROPERTY FOR THE TWELVE PROPERTIES INCLUDED IN THE ASHFORD PRIME PORTFOLIO.

	Three Months Ended December 31,								Year Ended December 31,
	2015			2014			% Variance		2015			2014			% Variance
CAPITAL HILTON WASHINGTON DC
Selected Financial Information:
Rooms Revenue	$	8,738		$	8,731		0.08	%	$	38,045		$	36,820		3.33	%
Total Hotel Revenue	$	12,440		$	12,571		-1.04	%	$	54,423		$	52,127		4.40	%
EBITDA	$	3,033		$	3,549		-14.54	%	$	15,297		$	15,183		0.75	%
EBITDA Margin	24.38		%	28.23		%	-3.85	%	28.11		%	29.13		%	-1.02	%
Selected Operating Information:
RevPAR	$	172.70		$	173.49		-0.46	%	$	189.88		$	184.91		2.69	%
Occupancy	79.48		%	81.58		%	-2.57	%	85.43		%	84.76		%	0.79	%
ADR	$	217.29		$	212.68		2.17	%	$	222.26		$	218.15		1.88	%
LA JOLLA HILTON TORREY PINES
Selected Financial Information:
Rooms Revenue	$	5,072		$	4,731		7.21	%	$	23,463		$	21,574		8.76	%
Total Hotel Revenue	$	9,266		$	8,761		5.76	%	$	40,541		$	37,187		9.02	%
EBITDA	$	2,321		$	2,161		7.40	%	$	12,521		$	10,942		14.43	%
EBITDA Margin	25.05		%	24.67		%	0.38	%	30.88		%	29.42		%	1.46	%
Selected Operating Information:
RevPAR	$	139.93		$	130.51		7.22	%	$	163.15		$	150.02		8.75	%
Occupancy	83.68		%	84.67		%	-1.17	%	85.35		%	84.50		%	1.00	%
ADR	$	167.22		$	154.13		8.49	%	$	191.16		$	177.54		7.67	%
CHICAGO SOFITEL WATER TOWER
Selected Financial Information:
Rooms Revenue	$	6,605		$	7,144		-7.54	%	$	26,980		$	27,368		-1.42	%
Total Hotel Revenue	$	9,350		$	10,303		-9.25	%	$	37,322		$	39,765		-6.14	%
EBITDA	$	2,093		$	2,899		-27.80	%	$	8,360		$	10,906		-23.34	%
EBITDA Margin	22.39		%	28.14		%	-5.75	%	22.40		%	27.43		%	-5.03	%
Selected Operating Information:
RevPAR	$	173.00		$	187.11		-7.54	%	$	178.11		$	180.68		-1.42	%
Occupancy	77.84		%	78.81		%	-1.22	%	80.03		%	80.45		%	-0.53	%
ADR	$	222.24		$	237.43		-6.40	%	$	222.55		$	224.57		-0.90	%
BARDESSONO HOTEL AND SPA
Selected Financial Information:
Rooms Revenue	$	3,290		$	3,107		5.89	%	$	12,769		$	12,124		5.32	%
Total Hotel Revenue	$	4,740		$	4,390		7.97	%	$	18,490		$	17,212		7.43	%
EBITDA	$	1,193		$	902		32.23	%	$	3,845		$	3,733		3.00	%
EBITDA Margin	25.17		%	20.55		%	4.62	%	20.80		%	21.69		%	-0.89	%
Selected Operating Information:
RevPAR	$	576.80		$	544.79		5.88	%	$	564.23		$	535.76		5.31	%
Occupancy	77.98		%	77.28		%	0.91	%	78.72		%	79.09		%	-0.46	%
ADR	$	739.68		$	704.96		4.92	%	$	716.73		$	677.44		5.80	%
KEY WEST PIER HOUSE RESORT
Selected Financial Information:
Rooms Revenue	$	4,581		$	4,203		8.99	%	$	18,549		$	17,293		7.26	%
Total Hotel Revenue	$	5,691		$	5,365		6.08	%	$	23,192		$	21,929		5.76	%
EBITDA	$	2,384		$	2,234		6.71	%	$	9,728		$	8,639		12.61	%
EBITDA Margin	41.89		%	41.64		%	0.25	%	41.95		%	39.40		%	2.55	%
Selected Operating Information:
RevPAR	$	350.64		$	321.70		9.00	%	$	357.88		$	333.66		7.26	%
Occupancy	89.11		%	86.28		%	3.27	%	90.15		%	86.55		%	4.16	%
ADR	$	393.50		$	372.84		5.54	%	$	396.99		$	385.52		2.98	%
PHILADELPHIA COURTYARD DOWNTOWN
Selected Financial Information:
Rooms Revenue	$	6,731		$	6,355		5.92	%	$	26,461		$	23,997		10.27	%
Total Hotel Revenue	$	8,310		$	7,944		4.61	%	$	32,044		$	29,652		8.07	%
EBITDA	$	3,252		$	2,966		9.64	%	$	12,518		$	11,311		10.67	%
EBITDA Margin	39.13		%	37.34		%	1.80	%	39.07		%	38.15		%	0.92	%
Selected Operating Information:
RevPAR	$	146.62		$	138.42		5.92	%	$	145.28		$	131.81		10.22	%
Occupancy	80.63		%	79.89		%	0.93	%	82.62		%	79.40		%	4.05	%
ADR	$	181.85		$	173.27		4.95	%	$	175.85		$	166.01		5.93	%

	Three Months Ended December 31,								Year Ended December 31,
	2015			2014			% Variance		2015			2014			% Variance
PLANO MARRIOTT LEGACY TOWN CENTER
Selected Financial Information:
Rooms Revenue	$	4,811		$	4,404		9.24	%	$	20,263		$	18,222		11.20	%
Total Hotel Revenue	$	7,858		$	7,680		2.32	%	$	32,033		$	29,473		8.69	%
EBITDA	$	2,568		$	2,556		0.47	%	$	11,087		$	9,876		12.26	%
EBITDA Margin	32.68		%	33.28		%	-0.60	%	34.61		%	33.51		%	1.10	%
Selected Operating Information:
RevPAR	$	129.44		$	118.49		9.24	%	$	137.41		$	123.57		11.20	%
Occupancy	66.92		%	66.22		%	1.06	%	71.03		%	69.12		%	2.76	%
ADR	$	193.43		$	178.93		8.11	%	$	193.45		$	178.78		8.21	%
SAN FRANCISCO COURTYARD DOWNTOWN
Selected Financial Information:
Rooms Revenue	$	8,252		$	8,355		-1.23	%	$	35,988		$	33,984		5.90	%
Total Hotel Revenue	$	9,653		$	9,760		-1.10	%	$	41,938		$	39,386		6.48	%
EBITDA	$	3,013		$	3,131		-3.77	%	$	13,688		$	13,066		4.76	%
EBITDA Margin	31.21		%	32.08		%	-0.87	%	32.64		%	33.17		%	-0.54	%
Selected Operating Information:
RevPAR	$	221.48		$	224.22		-1.22	%	$	243.45		$	229.90		5.89	%
Occupancy	86.25		%	89.55		%	-3.68	%	91.10		%	89.89		%	1.34	%
ADR	$	256.79		$	250.39		2.55	%	$	267.24		$	255.75		4.49	%
SEATTLE COURTYARD DOWNTOWN
Selected Financial Information:
Rooms Revenue	$	2,807		$	2,690		4.35	%	$	14,153		$	13,194		7.27	%
Total Hotel Revenue	$	3,382		$	3,188		6.09	%	$	16,259		$	15,375		5.75	%
EBITDA	$	1,328		$	1,259		5.48	%	$	6,561		$	6,209		5.67	%
EBITDA Margin	39.27		%	39.49		%	-0.23	%	40.35		%	40.38		%	-0.03	%
Selected Operating Information:
RevPAR	$	122.07		$	116.96		4.37	%	$	155.10		$	144.59		7.27	%
Occupancy	74.76		%	74.26		%	0.68	%	79.39		%	80.35		%	-1.19	%
ADR	$	163.27		$	157.51		3.66	%	$	195.37		$	179.94		8.57	%
SEATTLE MARRIOTT WATERFRONT
Selected Financial Information:
Rooms Revenue	$	5,550		$	5,050		9.90	%	$	27,419		$	25,044		9.48	%
Total Hotel Revenue	$	8,033		$	7,085		13.38	%	$	36,144		$	32,502		11.21	%
EBITDA	$	2,919		$	2,521		15.79	%	$	14,640		$	13,016		12.48	%
EBITDA Margin	36.34		%	35.58		%	0.76	%	40.50		%	40.05		%	0.46	%
Selected Operating Information:
RevPAR	$	168.50		$	153.33		9.89	%	$	209.84		$	191.66		9.49	%
Occupancy	76.52		%	72.33		%	5.78	%	82.22		%	79.67		%	3.20	%
ADR	$	220.21		$	211.98		3.88	%	$	255.20		$	240.56		6.09	%
ST THOMAS RITZ-CARLTON
Selected Financial Information:
Rooms Revenue	$	6,407		$	5,449		17.58	%	$	28,882		$	24,213		19.28	%
Total Hotel Revenue	$	11,590		$	9,729		19.13	%	$	52,263		$	45,033		16.05	%
EBITDA	$	1,300		$	378		243.90	%	$	8,968		$	5,036		78.07	%
EBITDA Margin	11.22		%	3.89		%	7.33	%	17.16		%	11.18		%	5.98	%
Selected Operating Information:
RevPAR	$	386.89		$	329.02		17.59	%	$	439.61		$	368.54		19.28	%
Occupancy	72.23		%	58.05		%	24.44	%	79.69		%	67.89		%	17.38	%
ADR	$	535.61		$	566.80		-5.50	%	$	551.63		$	542.82		1.62	%
TAMPA RENAISSANCE
Selected Financial Information:
Rooms Revenue	$	3,495		$	3,282		6.49	%	$	14,625		$	13,910		5.14	%
Total Hotel Revenue	$	5,517		$	5,158		6.96	%	$	21,934		$	21,218		3.37	%
EBITDA	$	1,436		$	1,251		14.79	%	$	5,855		$	5,649		3.65	%
EBITDA Margin	26.03		%	24.25		%	1.78	%	26.69		%	26.62		%	0.07	%
Selected Operating Information:
RevPAR	$	129.65		$	121.74		6.50	%	$	136.75		$	130.07		5.14	%
Occupancy	74.55		%	77.17		%	-3.40	%	77.96		%	80.38		%	-3.00	%
ADR	$	173.90		$	157.75		10.24	%	$	175.40		$	161.82		8.39	%
PRIME PROPERTIES TOTAL (12)
Selected Financial Information:
Rooms Revenue	$	66,340		$	63,499		4.47	%	$	287,597		$	267,745		7.41	%
Total Hotel Revenue	$	95,830		$	91,935		4.24	%	$	406,583		$	380,856		6.76	%
EBITDA	$	26,840		$	25,807		4.00	%	$	123,068		$	113,566		8.37	%
EBITDA Margin	28.01		%	28.07		%	-0.06	%	30.27		%	29.82		%	0.45	%
Selected Operating Information:
RevPAR	$	182.46		$	174.78		4.39	%	$	199.43		$	185.83		7.32	%
Occupancy	78.34		%	78.03		%	0.40	%	82.19		%	80.67		%	1.88	%
ADR	$	232.91		$	224.00		3.98	%	$	242.66		$	230.36		5.34	%

NOTES:

(1)The above pro forma information assumes the twelve hotel properties owned and included in the Company’s operations at December 31, 2015, were owned as of the beginning of each of the periods presented.

(2)All pre-acquisition information was obtained by the applicable seller and has not been audited or reviewed. Adjustments have been made to the pre-acquisition results as indicated below:

(a)Management fee expense was adjusted to reflect current contractual rates.

(b)Lease expense was adjusted to reflect additional expense from a below market rate ground lease on the Bardessono Hotel and Spa.

(3)See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

(4)See Exhibit 2 for reconciliation of actual selected financial and operating information to pro forma selected financial and operating information.

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
PRO FORMA HOTEL REVENUE & EBITDA FOR TRAILING TWELVE MONTHS
(dollars in thousands)
(unaudited)

THE FOLLOWING PRO FORMA SEASONALITY TABLE REFLECTS THE TWELVE HOTELS INCLUDED IN THE COMPANY’S OPERATIONS AT DECEMBER 31, 2015:

	2015			2015			2015			2015
	4th Quarter			3rd Quarter			2nd Quarter			1st Quarter			TTM
Total Hotel Revenue	$	95,830		$	101,322		$	111,519		$	97,912		$	406,583
Hotel EBITDA	$	26,840		$	30,855		$	37,359		$	28,014		$	123,068
Hotel EBITDA Margin	28.01		%	30.45		%	33.50		%	28.61		%	30.27		%
EBITDA % of Total TTM	21.8		%	25.1		%	30.3		%	22.8		%	100.0		%
JV Interests in EBITDA	$	1,339		$	1,427		$	2,513		$	1,675		$	6,954

NOTES:

(1)The above pro forma information assumes the twelve hotel properties owned and included in the Company’s operations at December 31, 2015, were owned as of the beginning of each of the periods presented.

(2)All pre-acquisition information was obtained by the applicable seller and has not been audited or reviewed. Adjustments have been made to the pre-acquisition results as indicated below:

(a)Management fee expense was adjusted to reflect current contractual rates.

(b)Lease expense was adjusted to reflect additional expense from a below market rate ground lease on the Bardessono Hotel and Spa.

(3)See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

See Exhibit 2 for reconciliation of actual seasonality table to pro forma seasonality table.

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ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
TOTAL ENTERPRISE VALUE
DECEMBER 31, 2015
(in thousands, except share price)
(unaudited)

	December 31, 2015
End of quarter common shares outstanding	28,472
Partnership units outstanding (common stock equivalents)	4,375
Combined common shares and partnership units outstanding	32,847
Common stock price at quarter end	$	14.50
Market capitalization at quarter end	$	476,282
Series B convertible preferred stock	$	65,000
Debt on balance sheet date	$	840,232
Joint venture partner’s share of consolidated debt	$	(48,840	)
Net working capital (see below)	$	(168,647	)
Total enterprise value (TEV)	$	1,164,027
Ashford Inc. Investment:
Common stock owned at end of quarter	195
Common stock price at quarter end	$	53.25
Market value of Ashford Inc. investment	$	10,377
Cash and cash equivalents	$	101,623
Restricted cash	31,733
Accounts receivable, net	12,594
Prepaid expenses	2,964
Investment in AIM REHE, LP	48,365
Due from affiliates, net	(5,782		)
Due from third-party hotel managers, net	9,818
Market value of Ashford Inc. investment	10,377
Total current assets	$	211,693
Accounts payable, net & accrued expenses	$	39,607
Dividends payable	3,439
Total current liabilities	$	43,046
Net working capital*	$	168,647

* Includes the Company’s pro rata share of net working capital in joint ventures.

- MORE -

Exhibit 1

ASHFORD  HOSPITALITY PRIME, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA
(in thousands)
(unaudited)

	Three months Ended December 31, 2015
	Capital						Chicago											Plano		San
	Hilton			La Jolla			Sofitel					Key West			Philadelphia			Marriott		Francisco			Seattle			Seattle			St. Thomas											Ashford
	Washington			Hilton			Water			Bardessono		Pier House			Courtyard			Legacy Town		Courtyard			Courtyard			Marriott			Ritz-			Tampa		HOTEL			Corporate /			Hospitality
	DC			Torrey Pines			Tower			Hotel & Spa		Resort			Downtown			Center		Downtown			Downtown			Waterfront			Carlton			Renaissance		TOTAL			Allocated			Prime, Inc.
Net income (loss)	$	1,312		$	1,002		$	(223	)	$	461	$	1,757		$	1,286		$	1,486	$	2,435		$	779		$	1,797		$	1,032		$	564	$	13,688		$	(19,796	)	$	(6,108	)
Income from consolidated entities attributable to noncontrolling interests	(358		)	(274		)	—			—		—			—			—		—			—			—			—			—		(632		)	(714		)	(1,346		)
Net loss attributable to redeemable noncontrolling interests in operating partnership	—			—			—			—		—			—			—		—			—			—			—			—		—			1,064			1,064
Net income (loss) attributable to the Company	954			728			(223		)	461		1,757			1,286			1,486		2,435			779			1,797			1,032			564		13,056			(19,446		)	(6,390		)
Non-property adjustments	(21		)	2			1			—		—			—			—		—			(1		)	—			5			—		(14		)	14			—
Interest Income	—			(2		)	—			—		—			(1		)	—		(3		)	—			(2		)	(1		)	—		(9		)	(4		)	(13		)
Interest expense	—			—			516			—		—			505			—		—			—			—			104			—		1,125			7,904			9,029
Amortization of loan cost	—			—			176			—		—			8			—		—			—			—			10			—		194			546			740
Depreciation and amortization	1,562			1,499			1,584			578		662			1,448			1,035		578			533			976			114			871		11,440			—			11,440
Income tax expense (benefit)	69			(196		)	—			—		—			4			—		—			—			—			37			—		(86		)	(22		)	(108		)
Non-Hotel EBITDA ownership expense	113			16			39			154		(35		)	2			47		3			17			148			—			1		505			(505		)	—
(Income) loss from consolidated entities attributable to noncontrolling interests	356			274			—			—		—			—			—		—			—			—			—			—		630			(630		)	—
Hotel Operating Profit (EBITDA) including amounts attributable to noncontrolling interest	3,033			2,321			2,093			1,193		2,384			3,252			2,568		3,013			1,328			2,919			1,301			1,436		26,841			(12,143		)	14,698
Less: EBITDA adjustments attributable to non-controlling interest	(360		)	(351		)	—			—		—			—			—		—			—			—			—			—		(711		)	(384		)	(1,095		)
Net income (loss) attributable to redeemable noncontrolling interest in operating partnership	—			—			—			—		—			—			—		—			—			—			—			—		—			(1,064		)	(1,064		)
Company’s portion of EBITDA of Ashford Inc.	—			—			—			—		—			—			—		—			—			—			—			—		—			276			276
Hotel EBITDA attributable to the Company	$	2,673		$	1,970		$	2,093		$	1,193	$	2,384		$	3,252		$	2,568	$	3,013		$	1,328		$	2,919		$	1,301		$	1,436	$	26,130		$	(13,315	)	$	12,815
Pre-acquisition Hotel EBITDA and comparability adjustments	—			—			—			—		—			—			—		—			—			—			(1		)	—		(1		)
Proforma Hotel EBITDA	$	3,033		$	2,321		$	2,093		$	1,193	$	2,384		$	3,252		$	2,568	$	3,013		$	1,328		$	2,919		$	1,300		$	1,436	$	26,840

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA
(in thousands)
(unaudited)

	Three months Ended December 31, 2014
	Capital						Chicago										Plano			San
	Hilton			La Jolla			Sofitel					Key West		Philadelphia			Marriott			Francisco			Seattle			Seattle			St. Thomas											Ashford
	Washington			Hilton			Water			Bardessono		Pier House		Courtyard			Legacy Town			Courtyard			Courtyard			Marriott			Ritz-		Tampa			HOTEL			Corporate /			Hospitality
	DC			Torrey Pines			Tower			Hotel & Spa		Resort		Downtown			Center			Downtown			Downtown			Waterfront			Carlton		Renaissance			TOTAL			Allocated			Prime, Inc.
Net income (loss)	$	1,467		$	543		$	674		$	—	$	1,604	$	984		$	1,548		$	2,575		$	774		$	1,528		$	—	$	673		$	12,370		$	(13,295	)	$	(925	)
Income from consolidated entities attributable to noncontrolling interests	(394		)	(159		)	—			—		—		—			—			—			—			—			—		—			(553		)	(1,291		)	(1,844		)
Net loss attributable to redeemable noncontrolling interests in operating partnership	—			—			—			—		—		—			—			—			—			—			—		—			—			717			717
Net income (loss) attributable to the Company	1,073			384			674			—		1,604		984			1,548			2,575			774			1,528			—		673			11,817			(13,869		)	(2,052		)
Non-property adjustments	(12		)	1			(1		)	—		—		—			1			—			(11		)	1			—		(1		)	(22		)	22			—
Interest Income	2			(1		)	—			—		—		—			(1		)	(3		)	—			(2		)	—		(1		)	(6		)	(1		)	(7		)
Interest expense	—			—			502			—		—		512			—			—			—			—			—		—			1,014			8,358			9,372
Amortization of loan cost	—			—			166			—		—		8			—			—			—			—			—		—			174			326			500
Depreciation and amortization	1,813			1,474			1,557			—		622		1,463			1,002			558			496			986			—		579			10,550			—			10,550
Income tax expense	28			129			—			—		—		3			—			—			—			—			—		—			160			315			475
Non-Hotel EBITDA ownership expense	252			15			1			—		8		(4		)	6			1			—			8			—		1			288			(288		)	—
(Income) loss from consolidated entities attributable to noncontrolling interests	393			159			—			—		—		—			—			—			—			—			—		—			552			(552		)	—
Hotel Operating Profit (EBITDA) including amounts attributable to noncontrolling interest	3,549			2,161			2,899			—		2,234		2,966			2,556			3,131			1,259			2,521			—		1,251			24,527			(5,689		)	18,838
Less: EBITDA adjustments attributable to non-controlling interest	(428		)	(345		)	—			—		—		—			—			—			—			—			—		—			(773		)	(419		)	(1,192		)
Net income (loss) attributable to redeemable noncontrolling interest in operating partnership	—			—			—			—		—		—			—			—			—			—			—		—			—			(717		)	(717		)
Company’s portion of EBITDA of Ashford Inc.	—			—			—			—		—		—			—			—			—			—			—		—			—			—			—
Hotel EBITDA attributable to the Company	$	3,121		$	1,816		$	2,899		$	—	$	2,234	$	2,966		$	2,556		$	3,131		$	1,259		$	2,521		$	—	$	1,251		$	23,754		$	(6,825	)	$	16,929
Pre-acquisition Hotel EBITDA and comparability adjustments	—			—			—			902		—		—			—			—			—			—			378		—			1,280
Proforma Hotel EBITDA	$	3,549		$	2,161		$	2,899		$	902	$	2,234	$	2,966		$	2,556		$	3,131		$	1,259		$	2,521		$	378	$	1,251		$	25,807

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA
(in thousands)
(unaudited)

	Year Ended December 31, 2015
	Capital						Chicago											Plano			San
	Hilton			La Jolla			Sofitel					Key West			Philadelphia			Marriott			Francisco			Seattle			Seattle			St. Thomas											Ashford
	Washington			Hilton			Water			Bardessono		Pier House			Courtyard			Legacy Town			Courtyard			Courtyard			Marriott			Ritz-		Tampa			HOTEL			Corporate /			Hospitality
	DC			Torrey Pines			Tower			Hotel & Spa		Resort			Downtown			Center			Downtown			Downtown			Waterfront			Carlton		Renaissance			TOTAL			Allocated			Prime, Inc.
Net income (loss)	$	8,222		$	6,684		$	(714	)	$	1,358	$	7,124		$	4,691		$	6,854		$	11,415		$	4,453		$	10,441		$	1,032	$	2,820		$	64,380		$	(69,071	)	$	(4,691	)
(Income) loss from consolidated entities attributable to noncontrolling interests	(2,173		)	(1,766		)	—			—		—			—			—			—			—			—			—		—			(3,939		)	1,525			(2,414		)
Net loss attributable to redeemable noncontrolling interests in operating partnership	—			—			—			—		—			—			—			—			—			—			—		—			—			393			393
Net income (loss) attributable to the Company	6,049			4,918			(714		)	1,358		7,124			4,691			6,854			11,415			4,453			10,441			1,032		2,820			60,441			(67,153		)	(6,712		)
Non-property adjustments	(19		)	—			(1		)	1		—			—			—			1			(1		)	(2		)	4		1			(16		)	16			—
Interest Income	(1		)	(2		)	—			—		—			(2		)	(1		)	(13		)	—			(7		)	—		(2		)	(28		)	(6		)	(34		)
Interest expense	—			—			2,022			—		—			2,013			—			—			—			—			104		—			4,139			31,115			35,254
Amortization of loan cost	—			—			698			—		—			32			—			—			—			—			10		—			740			1,835			2,575
Depreciation and amortization	6,524			5,819			6,296			1,177		2,629			5,761			4,109			2,278			2,091			4,004			114		3,022			43,824			—			43,824
Income tax expense (benefit)	69			(25		)	—			—		—			16			—			—			—			—			37		—			97			166			263
Non-Hotel EBITDA ownership expense	502			45			59			255		(25		)	7			125			7			18			204			—		14			1,211			(1,211		)	—
(Income) loss from consolidated entities attributable to noncontrolling interests	2,173			1,766			—			—		—			—			—			—			—			—			—		—			3,939			(3,939		)	—
Hotel Operating Profit (EBITDA) including amounts attributable to noncontrolling interest	15,297			12,521			8,360			2,791		9,728			12,518			11,087			13,688			6,561			14,640			1,301		5,855			114,347			(39,177		)	75,170
Less: EBITDA adjustments attributable to non- controlling interest	(1,513		)	(1,360		)	—			—		—			—			—			—			—			—			—		—			(2,873		)	(1,521		)	(4,394		)
Net income (loss) attributable to redeemable noncontrolling interest in operating partnership	—			—			—			—		—			—			—			—			—			—			—		—			—			(393		)	(393		)
Company’s portion of EBITDA of Ashford Inc.	—			—			—			—		—			—			—			—			—			—			—		—			—			402			402
Hotel EBITDA attributable to the Company	$	13,784		$	11,161		$	8,360		$	2,791	$	9,728		$	12,518		$	11,087		$	13,688		$	6,561		$	14,640		$	1,301	$	5,855		$	111,474		$	(40,689	)	$	70,785
Pre-acquisition Hotel EBITDA and comparability adjustments	—			—			—			1,054		—			—			—			—			—			—			7,667		—			8,721
Proforma Hotel EBITDA	$	15,297		$	12,521		$	8,360		$	3,845	$	9,728		$	12,518		$	11,087		$	13,688		$	6,561		$	14,640		$	8,968	$	5,855		$	123,068
ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
HOTEL EBITDA BY LOAN POOL
(in thousands)
(unaudited)
GACC Sofitel - 1 hotel	$	—		$	—		$	8,360		$	—	$	—		$	—		$	—		$	—		$	—		$	—		$	—	$	—		$	8,360
Credit Agricole Pier House - 1 hotel	—			—			—			—		9,728			—			—			—			—			—			—		—			9,728
Wachovia Philly CY - 1 hotel	—			—			—			—		—			12,518			—			—			—			—			—		—			12,518
Wachovia 3 - 2 hotels	—			—			—			—		—			—			—			13,688			6,561			—			—		—			20,249
Wachovia 7 - 3 hotels	—			—			—			—		—			—			11,087			—			—			14,640			—		5,855			31,582
Column Financial - 1 hotel	—			—			—			3,845		—			—			—			—			—			—			—		—			3,845
Apollo - 1 hotel	—			—			—			—		—			—			—			—			—			—			8,968		—			8,968
Aareal - 2 hotels	15,297			12,521			—			—		—			—			—			—			—			—			—		—			27,818
Total	$	15,297		$	12,521		$	8,360		$	3,845	$	9,728		$	12,518		$	11,087		$	13,688		$	6,561		$	14,640		$	8,968	$	5,855		$	123,068

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA
(in thousands)
(unaudited)

	Year Ended December 31, 2014
	Capital						Chicago										Plano			San
	Hilton			La Jolla			Sofitel					Key West		Philadelphia			Marriott			Francisco			Seattle			Seattle			St. Thomas											Ashford
	Washington			Hilton			Water			Bardessono		Pier House		Courtyard			Legacy Town			Courtyard			Courtyard			Marriott			Ritz-		Tampa			HOTEL			Corporate /			Hospitality
	DC			Torrey Pines			Tower			Hotel & Spa		Resort		Downtown			Center			Downtown			Downtown			Waterfront			Carlton		Renaissance			TOTAL			Allocated			Prime, Inc.
Net income (loss)	$	6,855		$	4,454		$	3,877		$	—	$	4,682	$	3,489		$	5,828		$	10,857		$	4,138		$	9,092		$	—	$	3,398		$	56,670		$	(53,132	)	$	3,538
(Income) loss from consolidated entities attributable to noncontrolling interests	(1,819		)	(1,207		)	—			—		—		—			—			—			—			—			—		—			(3,026		)	1,923			(1,103		)
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership	—			—			—			—		—		—			—			—			—			—			—		—			—			(496		)	(496		)
Net income (loss) attributable to the Company	5,036			3,247			3,877			—		4,682		3,489			5,828			10,857			4,138			9,092			—		3,398			53,644			(51,705		)	1,939
Non-property adjustments	(11		)	(1		)	—			—		—		—			—			—			(11		)	—			—		—			(23		)	23			—
Interest Income	1			(2		)	—			—		—		(1		)	(3		)	(8		)	(1		)	(6		)	—		(3		)	(23		)	(3		)	(26		)
Interest expense	—			—			1,696			—		—		2,041			—			—			—			—			—		—			3,737			33,466			37,203
Amortization of loan cost	—			—			564			—		—		32			—			—			—			—			—		—			596			1,232			1,828
Depreciation and amortization	7,592			5,976			5,182			—		1,999		5,705			3,934			2,196			1,957			3,895			—		2,249			40,685			1			40,686
Income tax expense	51			483			—			—		—		15			—			—			—			—			—		—			549			548			1,097
Non-Hotel EBITDA ownership expense	695			32			15			—		20		31			117			20			126			35			—		5			1,096			(1,096		)	—
(Income) loss from consolidated entities attributable to noncontrolling interests	1,819			1,207			—			—		—		—			—			—			—			—			—		—			3,026			(3,026		)	—
Hotel Operating Profit (EBITDA) including amounts attributable to noncontrolling interest	15,183			10,942			11,334			—		6,701		11,312			9,876			13,065			6,209			13,016			—		5,649			103,287			(20,560		)	82,727
Less: EBITDA adjustments attributable to non- controlling interest	(1,794		)	(1,400		)	—			—		—		—			—			—			—			—			—		—			(3,194		)	(1,842		)	(5,036		)
Net income (loss) attributable to redeemable noncontrolling interest in operating partnership	—			—			—			—		—		—			—			—			—			—			—		—			—			496			496
Company’s portion of EBITDA of Ashford Inc.	—			—			—			—		—		—			—			—			—			—			—		—			—			—			—
Hotel EBITDA attributable to the Company	$	13,389		$	9,542		$	11,334		$	—	$	6,701	$	11,312		$	9,876		$	13,065		$	6,209		$	13,016		$	—	$	5,649		$	100,093		$	(21,906	)	$	78,187
Pre-acquisition Hotel EBITDA and comparability adjustments	—			—			(428		)	3,733		1,938		(1		)	—			1			—			—			5,036		—			10,279
Proforma Hotel EBITDA	$	15,183		$	10,942		$	10,906		$	3,733	$	8,639	$	11,311		$	9,876		$	13,066		$	6,209		$	13,016		$	5,036	$	5,649		$	113,566

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME TO HOTEL EBITDA
(in thousands)
(unaudited)

	2015			2015			2015			2015			2015
	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter			TTM
Net income	$	11,356		$	22,022		$	17,314		$	13,688		$	64,380
Income from consolidated entities attributable to noncontrolling interests	(830		)	(1,778		)	(699		)	(632		)	(3,939		)
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership	—			—			—			—			—
Net income attributable to the Company	10,526			20,244			16,615			13,056			60,441
Non-property adjustments	(1		)	(1		)	—			(14		)	(16		)
Interest income	(4		)	(4		)	(11		)	(9		)	(28		)
Interest expense	993			1,005			1,016			1,125			4,139
Amortization of loan cost	181			182			183			194			740
Depreciation and amortization	10,517			10,559			11,308			11,440			43,824
Income tax expense (benefit)	71			102			10			(86		)	97
Non-Hotel EBITDA ownership expense	409			36			261			505			1,211
Income from consolidated entities attributable to noncontrolling interests	831			1,779			699			630			3,939
Hotel Operating Profit (EBITDA) including amounts attributable to noncontrolling interest	23,523			33,902			30,081			26,841			114,347
Pre-acquisition Hotel EBITDA and comparability adjustments	4,491			3,457			774			(1		)	8,721
Proforma Hotel EBITDA	$	28,014		$	37,359		$	30,855		$	26,840		$	123,068

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
RECONCILIATION OF KEY PERFORMANCE INDICATORS
(unaudited)

Exhibit 2

	Three Months Ended
	December 31,
	Actual			Pre-acquisition			Pro Forma			Actual			Pre-acquisition*			Pro Forma			Pro Forma
	2015			2015			2015			2014			2014			2014			% Variance
ALL HOTELS:
Rooms revenue (in thousands)	$	62,575		$	3,765		$	66,340		$	55,011		$	8,489		$	63,499		4.47	%
RevPAR	$	178.74		$	278.91		$	182.46		$	161.30		$	381.27		$	174.78		4.39	%
Occupancy	78.59		%	72.02		%	78.34		%	79.01		%	62.98		%	78.03		%	0.40	%
ADR	$	227.45		$	387.25		$	232.91		$	204.15		$	605.41		$	224.00		3.98	%

	Year Ended
	December 31,
	Actual			Pre-acquisition			Pro Forma			Actual			Pre-acquisition*			Pro Forma			Pro Forma
	2015			2015			2015			2014			2014			2014			% Variance
ALL HOTELS:
Rooms revenue (in thousands)	$	255,443		$	32,154		$	287,597		$	226,495		$	41,250		$	267,745		7.41	%
RevPAR	$	186.76		$	432.43		$	199.43		$	171.37		$	346.29		$	185.83		7.32	%
Occupancy	82.32		%	79.67		%	82.19		%	81.62		%	70.12		%	80.67		%	1.88	%
ADR	$	226.87		$	542.81		$	242.66		$	209.96		$	493.85		$	230.36		5.34	%

NOTES:

(1)The above pro forma information assumes the twelve hotel properties owned and included in the Company’s operations at December 31, 2015, were owned as of the beginning of each of the periods presented.

(2)All pre-acquisition information was obtained by the applicable seller and has not been audited or reviewed. Adjustments have been made to the pre-acquisition results as indicated below:

(a)Management fee expense was adjusted to reflect current contractual rates.

(b)Lease expense was adjusted to reflect additional expense from a below market rate ground lease on the Bardessono Hotel and Spa.

* 2014 pre-acquisition amounts include reclassifications to conform with the 2015 presentation resulting from the implementation of the revised Uniform System of Accounts for Lodging Industry.

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ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
RECONCILIATION OF HOTEL OPERATING PROFIT MARGIN
(unaudited)

THE FOLLOWING EBITDA MARGIN TABLE REFLECTS THE TWELVE HOTELS INCLUDED IN THE COMPANY’S OPERATIONS AT DECEMBER 31, 2015:

	Actual		Pre-acquisition *		Pro Forma
HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN:
4th Quarter 2015	30.46	%	-0.01	%	28.01	%
4th Quarter 2014	31.52	%	8.42	%	28.07	%
Variance	-1.06	%	-8.43	%	-0.06	%
HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN VARIANCE BREAKDOWN:
Rooms	0.64	%	-3.82	%	-0.03	%
Food & Beverage and Other Departmental	-0.69	%	-6.38	%	0.40	%
Administrative & General	0.51	%	-4.07	%	0.32	%
Sales & Marketing	-0.27	%	-1.00	%	-0.28	%
Repair & Maintenance	0.05	%	-1.45	%	0.19	%
Energy	0.03	%	-0.92	%	0.20	%
Management Fee	0.11	%	-0.26	%	-0.03	%
Incentive Management Fee	-0.53	%	3.73	%	-0.26	%
Insurance	-0.07	%	-0.49	%	-0.05	%
Property Taxes	-0.03	%	0.79	%	-0.24	%
Other Taxes	0.02	%	0.00	%	0.00	%
Leases/Other	-0.83	%	5.44	%	-0.28	%
Total	-1.06	%	-8.43	%	-0.06	%

NOTES:

(1)	The above pro forma information assumes the twelve hotel properties owned and included in the Company’s operations at December 31, 2015, were owned as of the beginning of each of the periods presented.
(2)	All pre-acquisition information was obtained by the applicable seller and has not been audited or reviewed. Adjustments have been been made to the pre-acquisition results as indicated below:
	(a) Management fee expense was adjusted to reflect current contractual rates.
	(b) Lease expense was adjusted to reflect additional expense from a below market rate ground lease on the Bardessono Hotel and Spa.
(3)	See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.
*	2014 pre-acquisition amounts include reclassifications to conform with the 2015 presentation resulting from the implementation of the revised Uniform System of Accounts for Lodging Industry.

- MORE -

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF SELECTED FINANCIAL AND OPERATING INFORMATION BY PROPERTY

(in thousands, except operating information)

(unaudited)

THE FOLLOWING TABLE PRESENTS SELECTED FINANCIAL AND OPERATING INFORMATION BY PROPERTY FOR THE TWELVE PROPERTIES INCLUDED IN THE ASHFORD PRIME PORTFOLIO:

	Three Months Ended December 31, 2015
	Actual			Pre-acquisition		Pro Forma			Actual			Pre-acquisition*			Pro Forma			Pro Forma
	2015			2015		2015			2014			2014			2014			% Variance
CAPITAL HILTON WASHINGTON DC
Selected Financial Information:
Rooms Revenue	$	8,738		$	—	$	8,738		$	8,795		$	-64		$	8,731		0.08	%
Total Hotel Revenue	$	12,440		$	—	$	12,440		$	12,272		$	299		$	12,571		-1.04	%
EBITDA	$	3,033		$	—	$	3,033		$	3,549		$	—		$	3,549		-14.54	%
EBITDA Margin	24.38		%	—		24.38		%	28.92		%	—			28.23		%	-3.85	%
Selected Operating Information:
RevPAR	$	172.70		$	—	$	172.70		$	174.77		$	(1.28	)	$	173.49		-0.46	%
Occupancy	79.48		%	—		79.48		%	81.58		%	—			81.58		%	-2.57	%
ADR	$	217.29		$	—	$	217.29		$	214.25		$	(1.57	)	$	212.68		2.17	%
LA JOLLA HILTON TORREY PINES
Selected Financial Information:
Rooms Revenue	$	5,072		$	—	$	5,072		$	4,734		$	-3		$	4,731		7.21	%
Total Hotel Revenue	$	9,266		$	—	$	9,266		$	8,546		$	215		$	8,761		5.76	%
EBITDA	$	2,321		$	—	$	2,321		$	2,161		$	—		$	2,161		7.40	%
EBITDA Margin	25.05		%	—		25.05		%	25.29		%	—			24.67		%	0.38	%
Selected Operating Information:
RevPAR	$	139.93		$	—	$	139.93		$	130.60		$	(0.09	)	$	130.51		7.22	%
Occupancy	83.68		%	—		83.68		%	84.67		%	—			84.67		%	-1.17	%
ADR	$	167.22		$	—	$	167.22		$	154.24		$	(0.11	)	$	154.13		8.49	%
CHICAGO SOFITEL WATER TOWER
Selected Financial Information:
Rooms Revenue	$	6,605		$	—	$	6,605		$	7,144		$	—		$	7,144		-7.54	%
Total Hotel Revenue	$	9,350		$	—	$	9,350		$	10,303		$	—		$	10,303		-9.25	%
EBITDA	$	2,093		$	—	$	2,093		$	2,899		$	—		$	2,899		-27.80	%
EBITDA Margin	22.39		%	—		22.39		%	28.14		%	—			28.14		%	-5.75	%
Selected Operating Information:
RevPAR	$	173.00		$	—	$	173.00		$	187.11		$	—		$	187.11		-7.54	%
Occupancy	77.84		%	—		77.84		%	78.81		%	—			78.81		%	-1.22	%
ADR	$	222.24		$	—	$	222.24		$	237.43		$	—		$	237.43		-6.40	%
BARDESSONO HOTEL AND SPA
Selected Financial Information:
Rooms Revenue	$	3,290		$	—	$	3,290		$	—		$	3,107		$	3,107		5.89	%
Total Hotel Revenue	$	4,740		$	—	$	4,740		$	—		$	4,390		$	4,390		7.97	%
EBITDA	$	1,193		$	—	$	1,193		$	—		$	902		$	902		32.23	%
EBITDA Margin	25.17		%	—		25.17		%	—			20.55		%	20.55		%	4.62	%
Selected Operating Information:
RevPAR	$	576.80		$	—	$	576.80		$	—		$	544.79		$	544.79		5.88	%
Occupancy	77.98		%	—		77.98		%	—			77.28		%	77.28		%	0.91	%
ADR	$	739.68		$	—	$	739.68		$	—		$	704.96		$	704.96		4.92	%
KEY WEST PIER HOUSE RESORT
Selected Financial Information:
Rooms Revenue	$	4,581		$	—	$	4,581		$	4,203		$	—		$	4,203		8.99	%
Total Hotel Revenue	$	5,691		$	—	$	5,691		$	5,365		$	—		$	5,365		6.08	%
EBITDA	$	2,384		$	—	$	2,384		$	2,234		$	—		$	2,234		6.71	%
EBITDA Margin	41.89		%	—		41.89		%	41.64		%	—			41.64		%	0.25	%
Selected Operating Information:
RevPAR	$	350.64		$	—	$	350.64		$	321.70		$	—		$	321.70		9.00	%
Occupancy	89.11		%	—		89.11		%	86.28		%	—			86.28		%	3.27	%
ADR	$	393.50		$	—	$	393.50		$	372.84		$	—		$	372.84		5.54	%
PHILADELPHIA COURTYARD DOWNTOWN
Selected Financial Information:
Rooms Revenue	$	6,731		$	—	$	6,731		$	6,355		$	—		$	6,355		5.92	%
Total Hotel Revenue	$	8,310		$	—	$	8,310		$	7,867		$	77		$	7,944		4.61	%
EBITDA	$	3,252		$	—	$	3,252		$	2,966		$	—		$	2,966		9.64	%
EBITDA Margin	39.13		%	—		39.13		%	37.70		%	—			37.34		%	1.80	%
Selected Operating Information:
RevPAR	$	146.62		$	—	$	146.62		$	138.42		$	—		$	138.42		5.92	%
Occupancy	80.63		%	—		80.63		%	79.89		%	—			79.89		%	0.93	%
ADR	$	181.85		$	—	$	181.85		$	173.27		$	—		$	173.27		4.95	%

	Three Months Ended December 31, 2015
	Actual			Pre-acquisition			Pro Forma			Actual			Pre-acquisition*			Pro Forma			Pro Forma
	2015			2015			2015			2014			2014			2014			% Variance
PLANO MARRIOTT LEGACY TOWN CENTER
Selected Financial Information:
Rooms Revenue	$	4,811		$	—		$	4,811		$	4,404		$	—		$	4,404		9.24	%
Total Hotel Revenue	$	7,858		$	—		$	7,858		$	7,500		$	180		$	7,680		2.32	%
EBITDA	$	2,568		$	—		$	2,568		$	2,556		$	—		$	2,556		0.47	%
EBITDA Margin	32.68		%	—			32.68		%	34.08		%	—			33.28		%	-0.60	%
Selected Operating Information:
RevPAR	$	129.44		$	—		$	129.44		$	118.49		$	—		$	118.49		9.24	%
Occupancy	66.92		%	—			66.92		%	66.22		%	—			66.22		%	1.06	%
ADR	$	193.43		$	—		$	193.43		$	178.93		$	—		$	178.93		8.11	%
SAN FRANCISCO COURTYARD DOWNTOWN
Selected Financial Information:
Rooms Revenue	$	8,252		$	—		$	8,252		$	8,355		$	—		$	8,355		-1.23	%
Total Hotel Revenue	$	9,653		$	—		$	9,653		$	9,698		$	62		$	9,760		-1.10	%
EBITDA	$	3,013		$	—		$	3,013		$	3,131		$	—		$	3,131		-3.77	%
EBITDA Margin	31.21		%	—			31.21		%	32.29		%	—			32.08		%	-0.87	%
Selected Operating Information:
RevPAR	$	221.48		$	—		$	221.48		$	224.22		$	—		$	224.22		-1.22	%
Occupancy	86.25		%	—			86.25		%	89.55		%	—			89.55		%	-3.68	%
ADR	$	256.79		$	—		$	256.79		$	250.39		$	—		$	250.39		2.55	%
SEATTLE COURTYARD DOWNTOWN
Selected Financial Information:
Rooms Revenue	$	2,807		$	—		$	2,807		$	2,690		$	—		$	2,690		4.35	%
Total Hotel Revenue	$	3,382		$	—		$	3,382		$	3,181		$	7		$	3,188		6.09	%
EBITDA	$	1,328		$	—		$	1,328		$	1,259		$	—		$	1,259		5.48	%
EBITDA Margin	39.27		%	—			39.27		%	39.58		%	—			39.49		%	-0.23	%
Selected Operating Information:
RevPAR	$	122.07		$	—		$	122.07		$	116.96		$	—		$	116.96		4.37	%
Occupancy	74.76		%	—			74.76		%	74.26		%	—			74.26		%	0.68	%
ADR	$	163.27		$	—		$	163.27		$	157.51		$	—		$	157.51		3.66	%
SEATTLE MARRIOTT WATERFRONT
Selected Financial Information:
Rooms Revenue	$	5,550		$	—		$	5,550		$	5,050		$	—		$	5,050		9.90	%
Total Hotel Revenue	$	8,033		$	—		$	8,033		$	6,969		$	116		$	7,085		13.38	%
EBITDA	$	2,919		$	—		$	2,919		$	2,521		$	—		$	2,521		15.79	%
EBITDA Margin	36.34		%	—			36.34		%	36.17		%	—			35.58		%	0.76	%
Selected Operating Information:
RevPAR	$	168.50		$	—		$	168.50		$	153.33		$	—		$	153.33		9.89	%
Occupancy	76.52		%	—			76.52		%	72.33		%	—			72.33		%	5.78	%
ADR	$	220.21		$	—		$	220.21		$	211.98		$	—		$	211.98		3.88	%
ST THOMAS RITZ-CARLTON
Selected Financial Information:
Rooms Revenue	$	2,642		$	3,765		$	6,407		$	—		$	5,449		$	5,449		17.58	%
Total Hotel Revenue	$	3,884		$	7,706		$	11,590		$	—		$	9,729		$	9,729		19.13	%
EBITDA	$	1,301		$	-1		$	1,300		$	—		$	378		$	378		243.90	%
EBITDA Margin	33.50		%	-0.01		%	11.22		%	—			3.89		%	3.89		%	7.33	%
Selected Operating Information:
RevPAR	$	863.30		$	278.91		$	386.89		$	—		$	329.02		$	329.02		17.59	%
Occupancy	73.17		%	72.02		%	72.23		%	—			58.05		%	58.05		%	24.44	%
ADR	$	1,179.85		$	387.25		$	535.61		$	—		$	566.80		$	566.80		-5.50	%
TAMPA RENAISSANCE
Selected Financial Information:
Rooms Revenue	$	3,495		$	—		$	3,495		$	3,282		$	—		$	3,282		6.49	%
Total Hotel Revenue	$	5,517		$	—		$	5,517		$	5,026		$	132		$	5,158		6.96	%
EBITDA	$	1,436		$	—		$	1,436		$	1,251		$	—		$	1,251		14.79	%
EBITDA Margin	26.03		%	—			26.03		%	24.89		%	—			24.25		%	1.78	%
Selected Operating Information:
RevPAR	$	129.65		$	—		$	129.65		$	121.74		$	—		$	121.74		6.50	%
Occupancy	74.55		%	—			74.55		%	77.17		%	—			77.17		%	-3.40	%
ADR	$	173.90		$	—		$	173.90		$	157.75		$	—		$	157.75		10.24	%
PRIME PROPERTIES TOTAL (12)
Selected Financial Information:
Rooms Revenue	$	62,575		$	3,765		$	66,340		$	55,011		$	8,488		$	63,499		4.47	%
Total Hotel Revenue	$	88,124		$	7,706		$	95,830		$	76,727		$	15,208		$	91,935		4.24	%
EBITDA	$	26,841		$	-1		$	26,840		$	24,527		$	1,281		$	25,807		4.00	%
EBITDA Margin	30.46		%	-0.01		%	28.01		%	31.52		%	8.42		%	28.07		%	-0.06	%
Selected Operating Information:
RevPAR	$	178.74		$	278.91		$	182.46		$	161.30		$	381.27		$	174.78		4.39	%
Occupancy	78.59		%	72.02		%	78.34		%	79.01		%	62.98		%	78.03		%	0.40	%
ADR	$	227.45		$	387.25		$	232.91		$	204.15		$	605.41		$	224.00		3.98	%

NOTES:

(1)The above pro forma information assumes the twelve hotel properties owned and included in the Company’s operations at December 31, 2015, were owned as of the beginning of each of the periods presented.

(2)All pre-acquisition information was obtained by the applicable seller and has not been audited or reviewed. Adjustments have been made to the pre-acquisition results as indicated below:

(a)Management fee expense was adjusted to reflect current contractual rates.

(b)Lease expense was adjusted to reflect additional expense from a below market rate ground lease on the Bardessono Hotel and Spa.

(3)See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

*2014 pre-acquisition amounts include reclassifications to conform with the 2015 presentation resulting from the implementation of the revised Uniform System of Accounts for Lodging Industry.

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF SELECTED FINANCIAL AND OPERATING INFORMATION BY PROPERTY
(in thousands, except operating information)
(unaudited)

THE FOLLOWING TABLE PRESENTS SELECTED FINANCIAL AND OPERATING INFORMATION BY PROPERTY FOR THE TWELVE PROPERTIES INCLUDED IN THE ASHFORD PRIME PORTFOLIO:

	Year Ended December 31,
	Actual			Pre-acquisition			Pro Forma			Actual			Pre-acquisition*			Pro Forma			Pro Forma
	2015			2015			2015			2014			2014			2014			% Variance
CAPITAL HILTON WASHINGTON DC
Selected Financial Information:
Rooms Revenue	$	38,045		$	—		$	38,045		$	37,060		$	-239		$	36,820		3.33	%
Total Revenue	$	54,423		$	—		$	54,423		$	50,920		$	1,207		$	52,127		4.40	%
EBITDA	$	15,297		$	—		$	15,297		$	15,183		$	—		$	15,183		0.75	%
EBITDA Margin	28.11		%	—			28.11		%	29.82		%	—			29.13		%	-1.02	%
Selected Operating Information:
RevPAR	$	189.88		$	—		$	189.88		$	186.11		$	(1.20	)	$	184.91		2.69	%
Occupancy	85.43		%	—			85.43		%	84.76		%	—			84.76		%	0.79	%
ADR	$	222.26		$	—		$	222.26		$	219.56		$	(1.42	)	$	218.15		1.88	%
LA JOLLA HILTON TORREY PINES
Selected Financial Information:
Rooms Revenue	$	23,463		$	—		$	23,463		$	21,673		$	-99		$	21,574		8.76	%
Total Revenue	$	40,541		$	—		$	40,541		$	36,393		$	794		$	37,187		9.02	%
EBITDA	$	12,521		$	—		$	12,521		$	10,942		$	—		$	10,942		14.43	%
EBITDA Margin	30.88		%	—			30.88		%	30.07		%	—			29.42		%	1.46	%
Selected Operating Information:
RevPAR	$	163.15		$	—		$	163.15		$	150.71		$	(0.69	)	$	150.02		8.75	%
Occupancy	85.35		%	—			85.35		%	84.50		%	—			84.50		%	1.00	%
ADR	$	191.16		$	—		$	191.16		$	178.35		$	(0.81	)	$	177.54		7.67	%
CHICAGO SOFITEL WATER TOWER
Selected Financial Information:
Rooms Revenue	$	26,980		$	—		$	26,980		$	25,534		$	1,834		$	27,368		-1.42	%
Total Revenue	$	37,322		$	—		$	37,322		$	36,635		$	3,130		$	39,765		-6.14	%
EBITDA	$	8,360		$	—		$	8,360		$	11,334		$	-428		$	10,906		-23.34	%
EBITDA Margin	22.40		%	—			22.40		%	30.94		%	-13.67		%	27.43		%	-5.03	%
Selected Operating Information:
RevPAR	$	178.11		$	—		$	178.11		$	197.84		$	81.87		$	180.68		-1.42	%
Occupancy	80.03		%	—			80.03		%	84.21		%	58.81		%	80.45		%	-0.53	%
ADR	$	222.55		$	—		$	222.55		$	234.93		$	139.20		$	224.57		-0.90	%
BARDESSONO HOTEL AND SPA
Selected Financial Information:
Rooms Revenue	$	6,855		$	5,914		$	12,769		$	—		$	12,124		$	12,124		5.32	%
Total Revenue	$	9,684		$	8,806		$	18,490		$	—		$	17,212		$	17,212		7.43	%
EBITDA	$	2,791		$	1,054		$	3,845		$	—		$	3,733		$	3,733		3.00	%
EBITDA Margin	28.82		%	11.97		%	20.80		%	—			21.69		%	21.69		%	-0.89	%
Selected Operating Information:
RevPAR	$	628.17		$	504.69		$	564.23		$	—		$	535.76		$	535.76		5.31	%
Occupancy	79.69		%	77.82		%	78.72		%	—			79.09		%	79.09		%	-0.46	%
ADR	$	788.25		$	648.53		$	716.73		$	—		$	677.44		$	677.44		5.80	%
KEY WEST PIER HOUSE RESORT
Selected Financial Information:
Rooms Revenue	$	18,549		$	—		$	18,549		$	13,877		$	3,416		$	17,293		7.26	%
Total Revenue	$	23,192		$	—		$	23,192		$	17,669		$	4,260		$	21,929		5.76	%
EBITDA	$	9,728		$	—		$	9,728		$	6,701		$	1,938		$	8,639		12.61	%
EBITDA Margin	41.95		%	—			41.95		%	37.93		%	45.49		%	39.40		%	2.55	%
Selected Operating Information:
RevPAR	$	357.88		$	—		$	357.88		$	319.37		$	407.75		$	333.66		7.26	%
Occupancy	90.15		%	—			90.15		%	85.18		%	93.63		%	86.55		%	4.16	%
ADR	$	396.99		$	—		$	396.99		$	374.92		$	435.51		$	385.52		2.98	%
PHILADELPHIA COURTYARD DOWNTOWN
Selected Financial Information:
Rooms Revenue	$	26,461		$	—		$	26,461		$	23,997		$	—		$	23,997		10.27	%
Total Revenue	$	32,044		$	—		$	32,044		$	29,379		$	273		$	29,652		8.07	%
EBITDA	$	12,518		$	—		$	12,518		$	11,312		$	-1		$	11,311		10.67	%
EBITDA Margin	39.07		%	—			39.07		%	38.50		%	—			38.15		%	0.92	%
Selected Operating Information:
RevPAR	$	145.28		$	—		$	145.28		$	131.81		$	—		$	131.81		10.22	%
Occupancy	82.62		%	—			82.62		%	79.40		%	—			79.40		%	4.05	%
ADR	$	175.85		$	—		$	175.85		$	166.01		$	—		$	166.01		5.93	%

	Year Ended December 31,
	Actual			Pre-acquisition			Pro Forma			Actual			Pre-acquisition*			Pro Forma			Pro Forma
	2015			2015			2015			2014			2014			2014			% Variance
PLANO MARRIOTT LEGACY TOWN CENTER
Selected Financial Information:
Rooms Revenue	$	20,263		$	—		$	20,263		$	18,222		$	—		$	18,222		11.20	%
Total Revenue	$	32,033		$	—		$	32,033		$	28,879		$	594		$	29,473		8.69	%
EBITDA	$	11,087		$	—		$	11,087		$	9,876		$	—		$	9,876		12.26	%
EBITDA Margin	34.61		%	—			34.61		%	34.20		%	—			33.51		%	1.10	%
Selected Operating Information:
RevPAR	$	137.41		$	—		$	137.41		$	123.57		$	—		$	123.57		11.20	%
Occupancy	71.03		%	—			71.03		%	69.12		%	—			69.12		%	2.76	%
ADR	$	193.45		$	—		$	193.45		$	178.78		$	—		$	178.78		8.21	%
SAN FRANCISCO COURTYARD DOWNTOWN
Selected Financial Information:
Rooms Revenue	$	35,988		$	—		$	35,988		$	33,984		$	—		$	33,984		5.90	%
Total Revenue	$	41,938		$	—		$	41,938		$	39,148		$	238		$	39,386		6.48	%
EBITDA	$	13,688		$	—		$	13,688		$	13,065		$	1		$	13,066		4.76	%
EBITDA Margin	32.64		%	—			32.64		%	33.37		%	—			33.17		%	-0.54	%
Selected Operating Information:
RevPAR	$	243.45		$	—		$	243.45		$	229.90		$	—		$	229.90		5.89	%
Occupancy	91.10		%	—			91.10		%	89.89		%	—			89.89		%	1.34	%
ADR	$	267.24		$	—		$	267.24		$	255.75		$	—		$	255.75		4.49	%
SEATTLE COURTYARD DOWNTOWN
Selected Financial Information:
Rooms Revenue	$	14,153		$	—		$	14,153		$	13,194		$	—		$	13,194		7.27	%
Total Revenue	$	16,259		$	—		$	16,259		$	15,339		$	36		$	15,375		5.75	%
EBITDA	$	6,561		$	—		$	6,561		$	6,209		$	—		$	6,209		5.67	%
EBITDA Margin	40.35		%	—			40.35		%	40.48		%	—			40.38		%	-0.03	%
Selected Operating Information:
RevPAR	$	155.10		$	—		$	155.10		$	144.59		$	—		$	144.59		7.27	%
Occupancy	79.39		%	—			79.39		%	80.35		%	—			80.35		%	-1.19	%
ADR	$	195.37		$	—		$	195.37		$	179.94		$	—		$	179.94		8.57	%
SEATTLE MARRIOTT WATERFRONT
Selected Financial Information:
Rooms Revenue	$	27,419		$	—		$	27,419		$	25,044		$	—		$	25,044		9.48	%
Total Revenue	$	36,144		$	—		$	36,144		$	32,103		$	399		$	32,502		11.21	%
EBITDA	$	14,640		$	—		$	14,640		$	13,016		$	—		$	13,016		12.48	%
EBITDA Margin	40.50		%	—			40.50		%	40.54		%	—			40.05		%	0.46	%
Selected Operating Information:
RevPAR	$	209.84		$	—		$	209.84		$	191.66		$	—		$	191.66		9.49	%
Occupancy	82.22		%	—			82.22		%	79.67		%	—			79.67		%	3.20	%
ADR	$	255.20		$	—		$	255.20		$	240.56		$	—		$	240.56		6.09	%
ST THOMAS RITZ-CARLTON
Selected Financial Information:
Rooms Revenue	$	2,642		$	26,240		$	28,882		$	—		$	24,213		$	24,213		19.28	%
Total Revenue	$	3,884		$	48,379		$	52,263		$	—		$	45,033		$	45,033		16.05	%
EBITDA	$	1,301		$	7,667		$	8,968		$	—		$	5,036		$	5,036		78.07	%
EBITDA Margin	33.50		%	15.85		%	17.16		%	—			11.18		%	11.18		%	5.98	%
Selected Operating Information:
RevPAR	$	863.30		$	418.91		$	439.61		$	—		$	368.54		$	368.54		19.28	%
Occupancy	73.17		%	80.01		%	79.69		%	—			67.89		%	67.89		%	17.38	%
ADR	$	1,179.85		$	523.57		$	551.63		$	—		$	542.82		$	542.82		1.62	%
TAMPA RENAISSANCE
Selected Financial Information:
Rooms Revenue	$	14,625		$	—		$	14,625		$	13,910		$	—		$	13,910		5.14	%
Total Revenue	$	21,934		$	—		$	21,934		$	20,726		$	492		$	21,218		3.37	%
EBITDA	$	5,855		$	—		$	5,855		$	5,649		$	—		$	5,649		3.65	%
EBITDA Margin	26.69		%	—			26.69		%	27.26		%	—			26.62		%	0.07	%
Selected Operating Information:
RevPAR	$	136.75		$	—		$	136.75		$	130.07		$	—		$	130.07		5.14	%
Occupancy	77.96		%	—			77.96		%	80.38		%	—			80.38		%	-3.00	%
ADR	$	175.40		$	—		$	175.40		$	161.82		$	—		$	161.82		8.39	%
PRIME PROPERTIES TOTAL (12)
Selected Financial Information:
Rooms Revenue	$	255,443		$	32,154		$	287,597		$	226,495		$	41,250		$	267,745		7.41	%
Total Hotel Revenue	$	349,398		$	57,185		$	406,583		$	307,193		$	73,663		$	380,856		6.76	%
EBITDA	$	114,347		$	8,721		$	123,068		$	103,287		$	10,279		$	113,566		8.37	%
EBITDA Margin	32.73		%	15.25		%	30.27		%	33.62		%	13.95		%	29.82		%	0.45	%
Selected Operating Information:
RevPAR	$	186.76		$	432.43		$	199.43		$	171.37		$	346.29		$	185.83		7.32	%
Occupancy	82.32		%	79.67		%	82.19		%	81.62		%	70.12		%	80.67		%	1.88	%
ADR	$	226.87		$	542.81		$	242.66		$	209.96		$	493.85		$	230.36		5.34	%

NOTES:

(1)The above pro forma information assumes the twelve hotel properties owned and included in the Company’s operations at December 31, 2015, were owned as of the beginning of each of the periods presented.

(2)All pre-acquisition information was obtained by the applicable seller and has not been audited or reviewed. Adjustments have been made to the pre-acquisition results as indicated below:

(a)Management fee expense was adjusted to reflect current contractual rates.

(b)Lease expense was adjusted to reflect additional expense from a below market rate ground lease on the Bardessono Hotel and Spa.

(3)See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

*2014 pre-acquisition amounts include reclassifications to conform with the 2015 presentation resulting from the implementation of the revised Uniform System of Accounts for Lodging Industry.

ASHFORD HOSPITALITY  PRIME, INC. AND SUBSIDIARIES
RECONCILIATION OF HOTEL REVENUE & EBITDA FOR TRAILING TWELVE MONTHS
(dollars in thousands)
(unaudited)

THE FOLLOWING  SEASONALITY  TABLE REFLECTS THE TWELVE HOTELS INCLUDED IN THE COMPANY’S  OPERATIONS  AT DECEMBER 31, 2015:

	Actual			Pre-acquisition			Pro Forma			Actual			Pre-acquisition			Pro Forma			Actual			Pre-acquisition			Pro Forma			Actual			Pre-acquisition			Pro Forma
	2015			2015			2015			2015			2015			2015			2015			2015			2015			2015			2015			2015
	4th Quarter			4th Quarter			4th Quarter			3rd Quarter			3rd Quarter			3rd Quarter			2nd Quarter			2nd Quarter			2nd Quarter			1st Quarter			1st Quarter			1st Quarter
Total Hotel Revenue	$	88,124		$	7,706		$	95,830		$	90,725		$	10,597		$	101,322		$	92,800		$	18,719		$	111,519		$	77,749		$	20,163		$	97,912
Hotel EBITDA	$	26,841		$	-1		$	26,840		$	30,081		$	774		$	30,855		$	33,902		$	3,457		$	37,359		$	23,523		$	4,491		$	28,014
Hotel EBITDA Margin	30.46		%	-0.01		%	28.01		%	33.16		%	7.30		%	30.45		%	36.53		%	18.47		%	33.50		%	30.26		%	22.27		%	28.61		%
EBITDA % of Total TTM	23.5		%	0.0		%	21.8		%	26.3		%	8.9		%	25.1		%	29.6		%	39.6		%	30.3		%	20.6		%	51.5		%	22.8		%
JV Interests in EBITDA	$	1,339		$	—		$	1,339		$	1,427		$	—		$	1,427		$	2,513		$	—		$	2,513		$	1,675		$	—		$	1,675
	Actual			Pre-acquisition			Pro Forma
	2015			2015			2015
	TTM			TTM			TTM
Total Hotel Revenue	$	349,398		$	57,185		$	406,583
Hotel EBITDA	$	114,347		$	8,721		$	123,068
Hotel EBITDA Margin	32.73		%	15.25		%	30.27		%
EBITDA % of Total TTM	100.0		%	100.0		%	100.0		%
JV Interests in EBITDA	$	6,954		$	—		$	6,954

NOTES:

(1)    The above pro forma information assumes the twelve hotel properties owned and included in the Company’s operations at December 31, 2015, were owned as of the beginning of each of the periods presented.

(2)    All pre-acquisition information was obtained by the applicable seller and has not been audited or reviewed. Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates.

(b) Lease expense was adjusted to reflect additional expense from a below market rate ground lease on the Bardessono Hotel and Spa.

(3)    See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

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