DiamondRock Hospitality Co 8-K, filed Nov 3, 2026
DiamondRock Hospitality Co (DRH)
8-K
2026-11-03
For: 2026-11-03
View Original
Added on
November 03, 2026
About this 8-K
DiamondRock Hospitality Co filed this 8-K on November 3, 2026.
DiamondRock Hospitality Company raised full-year 2026 Adjusted EBITDA guidance to $322.0 to $327.0 million after a third quarter that produced net income of $33.3 million and Adjusted FFO per diluted share of $0.32. AI summary
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in charter)
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of Principal Executive Offices) (Zip Code)
(Registrant’s telephone number, including area code): (240 ) 744-1150
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
This Current Report on Form 8-K (“Current Report”) contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as “believe,” “expect,” “intend,” “project,” “anticipate,” “position,” and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to, those risks and uncertainties described from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K filed on February 27, 2026 and our Quarterly Reports on Form 10-Q filed on April 30, 2026 and July 30, 2026. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this Current Report is as of the date of this Current Report, and we undertake no obligation to update any forward-looking statement to conform the statement to actual results or changes in our expectations.
ITEM 2.02 Results of Operations and Financial Condition.
On November 3, 2026, DiamondRock Hospitality Company (the “Company”) issued a press release announcing its financial results for the three and nine months ended September 30, 2026. A copy of that press release is furnished as Exhibit 99.1 and is incorporated by reference herein.
The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, regardless of any general incorporation language in such filing.
ITEM 9.01 Financial Statements and Exhibits.
(d) Exhibits.
The following exhibits are included with this report:
Exhibit No. Description
101.SCH Inline XBRL Taxonomy Extension Schema Document
101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document
104 Cover Page Interactive Data File
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| DIAMONDROCK HOSPITALITY COMPANY | ||||||||||||||||||||
| Dated: November 3, 2026 | By: | /s/ Briony R. Quinn | ||||||||||||||||||
| Briony R. Quinn | ||||||||||||||||||||
| Executive Vice President, Chief Financial Officer and Treasurer | ||||||||||||||||||||
COMPANY CONTACTS
Briony Quinn
Chief Financial Officer
(240) 744-1196
Dori Kesten
Capital Markets
(617) 835-8366
DIAMONDROCK HOSPITALITY COMPANY REPORTS THIRD QUARTER 2026 RESULTS
Raises Full-Year Guidance Following Another Strong Quarter
BETHESDA, Maryland, Tuesday, November 3, 2026 – DiamondRock Hospitality Company (Nasdaq: DRH) (the "Company"), a lodging real estate investment trust that owns a portfolio of 35 premium hotels and resorts in the United States, today announced results of operations for the quarter ended September 30, 2026.
THIRD QUARTER 2026 HIGHLIGHTS
•Net Income: Net income attributable to common stockholders of $33.3 million, or $0.16 per diluted share, increased 65.7% and 60.0%, respectively, compared to the third quarter of 2025.
•Adjusted EBITDA: $84.8 million, an increase of 7.2% compared to the third quarter of 2025.
•Adjusted FFO per Diluted Share: $0.32, an increase of 10.3% compared to the third quarter of 2025.
•Comparable RevPAR: $226.01, an increase of 6.6% compared to the third quarter of 2025.
•Comparable Total RevPAR: $344.13, an increase of 6.5% compared to the third quarter of 2025.
•Comparable Hotel Adjusted EBITDA: $91.7 million, an increase of 12.5% compared to the third quarter of 2025.
•Comparable Hotel Adjusted EBITDA Margin: 30.81%, an increase of 166 basis points compared to the third quarter of 2025.
•Common Dividend: The Company increased its quarterly common dividend by 22% to $0.11 per share.
RECENT DEVELOPMENT
•Hotel Acquisition: On October 1, 2026, the Company acquired The Bellmoor Inn & Spa, a 79-room independent resort in Rehoboth Beach, Delaware, for total consideration of $31.0 million.
"We delivered another strong quarter, exceeding our expectations with healthy demand and higher rates across both transient and group segments. Combined with the operating efficiencies we have built across the portfolio, that drove outsized Hotel Adjusted EBITDA growth and, importantly, higher free cash flow. Given the strength of our third quarter results and our fourth quarter booking pace, we are raising our 2026 guidance again.
Our growing free cash flow and conservative balance sheet provide us with substantial capacity to invest when we see compelling opportunities. We put that capacity to work in October with the acquisition of The Bellmoor Inn & Spa, a leading independent resort in a supply-constrained market. The resort was acquired at an attractive initial yield and offers meaningful upside through the DiamondRock platform.
Looking ahead to 2027, we see a constructive industry backdrop and strong earnings drivers across our portfolio. We expect to grow earnings through continued operating execution and the ramp of our recently renovated hotels, while our free cash flow and balance sheet provide significant flexibility to deploy capital at attractive returns. That is our flywheel: grow earnings, generate more free cash flow and reinvest that capital at attractive returns to drive further growth."
- Jeffrey J. Donnelly, Chief Executive Officer of DiamondRock Hospitality Company
OPERATING RESULTS
Please see “Non-GAAP Financial Measures” attached to this press release for an explanation of the terms “EBITDAre,” “Adjusted EBITDA,” “Hotel Adjusted EBITDA,” “Hotel Adjusted EBITDA Margin,” “FFO” and “Adjusted FFO” and a reconciliation of these measures to net income. “Comparable” operating results and statistics include all hotels owned as of September 30, 2026, for all periods presented. See “Comparable Hotel Operating Statistics and Results” and “Reconciliation of Comparable Operating Results” attached to this press release for an explanation of the Company's comparable hotels and a reconciliation to historical amounts. “Actual” operating results and statistics include the operating results and statistics for all hotels for only the Company’s respective ownership periods.
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | Change | 2026 | 2025 | Change | ||||||||||||||||||
| (unaudited, $ amounts in millions, except hotel statistics and per share amounts) | |||||||||||||||||||||||
Comparable Operating Results(1) | |||||||||||||||||||||||
| ADR | $ | 290.46 | $ | 279.91 | 3.8 | % | $ | 295.48 | $ | 284.81 | 3.7 | % | |||||||||||
| Occupancy | 77.8 | % | 75.8 | % | 2.0 | % | 74.1 | % | 72.9 | % | 1.2 | % | |||||||||||
| RevPAR | $ | 226.01 | $ | 212.06 | 6.6 | % | $ | 218.91 | $ | 207.69 | 5.4 | % | |||||||||||
| Total RevPAR | $ | 344.13 | $ | 323.24 | 6.5 | % | $ | 338.37 | $ | 322.37 | 5.0 | % | |||||||||||
| Room Revenues | $ | 195.5 | $ | 183.5 | 6.5 | % | $ | 561.9 | $ | 533.3 | 5.4 | % | |||||||||||
| Total Revenues | $ | 297.6 | $ | 279.7 | 6.4 | % | $ | 868.5 | $ | 827.8 | 4.9 | % | |||||||||||
Hotel Operating Expenses(2) | $ | 205.9 | $ | 198.2 | 3.9 | % | $ | 597.7 | $ | 591.5 | 1.0 | % | |||||||||||
Hotel Adjusted EBITDA(2) | $ | 91.7 | $ | 81.5 | 12.5 | % | $ | 270.8 | $ | 236.3 | 14.6 | % | |||||||||||
Hotel Adjusted EBITDA Margin(2) | 30.81 | % | 29.15 | % | 166 bps | 31.18 | % | 28.54 | % | 264 bps | |||||||||||||
| Available Rooms | 864,800 | 865,352 | (552) | 2,566,770 | 2,567,838 | (1,068) | |||||||||||||||||
| Actual Operating Results | |||||||||||||||||||||||
| Total Revenues | $ | 297.6 | $ | 285.4 | 4.3 | % | $ | 874.1 | $ | 846.0 | 3.3 | % | |||||||||||
Net income attributable to common stockholders(2) | $ | 33.3 | $ | 20.1 | 65.7 | % | $ | 138.3 | $ | 67.9 | 103.7 | % | |||||||||||
Earnings per diluted share(2) | $ | 0.16 | $ | 0.10 | 60.0 | % | $ | 0.67 | $ | 0.33 | 103.0 | % | |||||||||||
Adjusted EBITDA(2) | $ | 84.8 | $ | 79.1 | 7.2 | % | $ | 253.3 | $ | 225.7 | 12.2 | % | |||||||||||
Adjusted FFO(2) | $ | 66.1 | $ | 59.2 | 11.7 | % | $ | 204.0 | $ | 171.1 | 19.2 | % | |||||||||||
Adjusted FFO per diluted share(2) | $ | 0.32 | $ | 0.29 | 10.3 | % | $ | 0.98 | $ | 0.82 | 19.5 | % | |||||||||||
(1) Amounts exclude the operating results for the Courtyard New York Manhattan/Fifth Avenue sold on May 1, 2026 and the Westin Washington D.C. City Center sold on February 19, 2025.
(2) The nine months ended September 30, 2026 includes the one-time benefit of approximately $6.9 million recognized in the second quarter of 2026 as a result of a favorable settlement of multi-year property tax appeals for the Company's two Chicago hotels. Excluding this benefit, for the nine months ended September 30, 2026, Comparable Hotel Operating Expenses increased 2.2%, Comparable Hotel Adjusted EBITDA Margin increased 185 basis points and Adjusted FFO per diluted share was $0.95.
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HOTEL ACQUISITION
On October 1, 2026, the Company completed the acquisition of The Bellmoor Inn & Spa, a 79-room independent, fee simple, third-party managed resort in Rehoboth Beach, Delaware, for total consideration of $31.0 million. The purchase price represents a 10.4x multiple of trailing 12-month August 2026 Hotel Adjusted EBITDA and an 8.6% capitalization rate on Hotel Net Operating Income (Hotel NOI). Following the implementation of the Company's asset management initiatives and completion of planned off-season capital improvements, the Company expects the hotel to generate a stabilized Hotel NOI yield of approximately 9.5%.
CAPITAL EXPENDITURES
The Company invested $59.2 million in capital improvements during the nine months ended September 30, 2026. The Company currently expects to invest approximately $75.0 to $80.0 million in capital improvements at its hotels in 2026. Significant projects in 2026 include the following:
•Courtyard New York Manhattan/Midtown East: The Company completed a guestroom renovation during the first quarter of 2026.
•Henderson Park Inn: The Company completed a renovation of the guestrooms and bathrooms during the first quarter of 2026.
•Westin San Diego Bayview: The Company began a renovation of the hotel's entrance, lobby, and lobby bar during the third quarter of 2026 and expects to complete the project in the first quarter of 2027.
•Atlanta Marriott Alpharetta: The Company expects to begin a guestroom renovation during the fourth quarter of 2026 and expects to complete the project in the first quarter of 2027.
BALANCE SHEET
As of September 30, 2026, the Company had total debt outstanding of $1.1 billion, consisting of three unsecured term loans with a weighted average interest rate of 5.1%. The Company also had $400.0 million of available capacity under its undrawn revolving credit facility and approximately $140.0 million of unrestricted cash on hand.
SHARE REPURCHASE PROGRAM
During the nine months ended September 30, 2026, the Company repurchased approximately 0.2 million shares of its common stock for $1.9 million, at an average price of $9.79 per share. The Company currently has $299.4 million of remaining capacity under its $300.0 million share repurchase program, which was announced on April 30, 2026.
DIVIDENDS
The Company's Board of Directors declared a third quarter cash dividend of $0.11 per share to stockholders of record as of September 30, 2026, representing a 22% increase over the prior quarterly dividend. The third quarter dividend was paid on October 14, 2026.
The Company expects to declare a stub dividend in the fourth quarter of 2026 in addition to its regular quarterly dividend of $0.11 per common share, depending on its estimated 2026 taxable income.
GUIDANCE
The Company is raising its 2026 guidance to reflect the stronger-than-expected third quarter results and improved fourth quarter booking pace. The outlook includes the anticipated contribution from The Bellmoor Inn & Spa but assumes no additional acquisitions, dispositions, or share repurchases. It reflects current operating trends and macroeconomic conditions. Achievement of the anticipated results is subject to the risks disclosed in the Company’s filings with the U.S. Securities and Exchange Commission, which may cause actual results to differ materially from the anticipated results expressed or implied below.
3
The Company now anticipates full year 2026 results to be in the following ranges:
| Metric | Prior Guidance | Updated Guidance | Change at Midpoint | ||||||||
| Comparable RevPAR Growth | 2.5% to 4.0% | 4.75% to 5.25% | 175 bps | ||||||||
| Comparable Total RevPAR Growth | 2.75% to 4.25% | 4.75% to 5.25% | 150 bps | ||||||||
| Adjusted EBITDA (in millions) | $310.0 to $320.0 | $322.0 to $327.0 | $9.5 | ||||||||
| Adjusted FFO (in millions) | $245.5 to $255.5 | $256.5 to $261.5 | $8.5 | ||||||||
| Adjusted FFO per diluted share | $1.18 to $1.23 | $1.24 to $1.26 | $0.04 | ||||||||
Full year 2026 guidance is based in part on the following assumptions:
•The Bellmoor Inn & Spa is expected to contribute approximately $0.2 million to Adjusted EBITDA and Adjusted FFO in the fourth quarter of 2026;
•Full year cash corporate expenses of approximately $28.0 million, which excludes share-based compensation;
•Full year cash interest expense of approximately $58.5 million to $59.5 million; and
•Fully diluted weighted average common shares and units of 207.5 million.
EARNINGS CALL
The Company will host a conference call to discuss its third quarter results on Wednesday, November 4, 2026, at 10:00 a.m. Eastern Time. Participants may access the call by telephone or webcast. Interested individuals should register using this link to receive the dial-in and webcast information. Registration is also available through the Company's website at https://investor.drhc.com. A webcast replay will be archived on the Company's website.
ABOUT THE COMPANY
DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that owns a leading portfolio of geographically diversified hotels concentrated in leisure destinations and top gateway markets. The Company owns 35 premium quality hotels with 9,479 rooms. The Company has strategically positioned its portfolio to be operated both under leading global brand families as well as independent boutique hotels in the lifestyle segment. For further information on the Company and its portfolio, please visit DiamondRock Hospitality Company’s website at www.drhc.com.
This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as "believe," "expect," "intend," "project," "forecast," "plan" and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: the adverse impact of any future pandemic, epidemic or outbreak of any highly infectious disease on the U.S., regional and global economies, travel, the hospitality industry, and the financial condition and results of operations of the Company and its hotels; negative developments or volatility in the economy, including, but not limited to elevated inflation and interest rates, job loss or growth trends, the imposition of trade sanctions or tariffs and any potential retaliatory responses thereto, an increase in unemployment or a decrease in corporate earnings and investment; risks associated with the lodging industry overall, including, without limitation, decreases in the frequency of travel, decreases in the demand for, or frequency of, international travel as a result of evolving global trade dynamics or otherwise, and increases in operating costs; relationships with property managers; the ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; changes in taxes and government regulations which influence or determine wages, prices, construction procedures and costs; and other risk factors contained in the Company's filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of the date of this release, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.
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DIAMONDROCK HOSPITALITY COMPANY
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
| September 30, 2026 | December 31, 2025 | ||||||||||
| ASSETS | (Unaudited) | (Audited) | |||||||||
| Property and equipment, net | $ | 2,547,000 | $ | 2,596,458 | |||||||
| Right-of-use assets | 85,876 | 89,041 | |||||||||
| Restricted cash | 40,465 | 35,137 | |||||||||
| Due from hotel managers | 185,451 | 137,787 | |||||||||
| Prepaid and other assets | 98,097 | 77,194 | |||||||||
| Cash and cash equivalents | 139,963 | 68,084 | |||||||||
| Total assets | $ | 3,096,852 | $ | 3,003,701 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
| Liabilities: | |||||||||||
| Debt, net of unamortized debt issuance costs | $ | 1,099,131 | $ | 1,098,850 | |||||||
| Lease liabilities | 96,260 | 87,053 | |||||||||
| Due to hotel managers | 133,288 | 109,568 | |||||||||
| Deferred rent | 80,493 | 77,405 | |||||||||
| Unfavorable contract liabilities, net | 55,305 | 56,549 | |||||||||
| Accounts payable and accrued expenses | 53,019 | 83,888 | |||||||||
| Distributions declared and unpaid | 24,061 | 25,903 | |||||||||
| Deferred income related to key money, net | 6,843 | 7,400 | |||||||||
| Total liabilities | 1,548,400 | 1,546,616 | |||||||||
| Equity: | |||||||||||
| Common stock, $0.01 par value; 400,000,000 shares authorized; 204,610,975 and 203,703,182 shares issued and outstanding at September 30, 2026 and December 31, 2025, respectively | 2,046 | 2,037 | |||||||||
| Additional paid-in capital | 2,121,886 | 2,114,438 | |||||||||
| Accumulated other comprehensive income (loss) | 3,972 | (6,381) | |||||||||
| Distributions in excess of earnings | (584,161) | (662,209) | |||||||||
| Total stockholders’ equity | 1,543,743 | 1,447,885 | |||||||||
| Noncontrolling interests | 4,709 | 9,200 | |||||||||
| Total equity | 1,548,452 | 1,457,085 | |||||||||
| Total liabilities and equity | $ | 3,096,852 | $ | 3,003,701 | |||||||
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DIAMONDROCK HOSPITALITY COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
(unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Rooms | $ | 195,451 | $ | 189,088 | $ | 567,205 | $ | 550,443 | |||||||||||||||
Food and beverage | 72,169 | 67,415 | 220,115 | 213,084 | |||||||||||||||||||
Other | 29,985 | 28,881 | 86,733 | 82,430 | |||||||||||||||||||
Total revenues | 297,605 | 285,384 | 874,053 | 845,957 | |||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||||
Rooms | 46,521 | 46,529 | 135,826 | 137,644 | |||||||||||||||||||
Food and beverage | 48,998 | 47,181 | 145,724 | 144,146 | |||||||||||||||||||
| Other departmental and support expenses | 70,528 | 68,127 | 207,310 | 202,132 | |||||||||||||||||||
Management fees | 7,921 | 7,096 | 21,798 | 19,520 | |||||||||||||||||||
Franchise fees | 10,132 | 9,731 | 29,936 | 28,782 | |||||||||||||||||||
| Other property-level expenses | 22,921 | 24,967 | 65,268 | 77,883 | |||||||||||||||||||
Depreciation and amortization | 28,530 | 28,340 | 85,911 | 84,388 | |||||||||||||||||||
Impairment losses | — | 1,076 | — | 1,076 | |||||||||||||||||||
Corporate expenses | 10,925 | 8,567 | 29,187 | 25,715 | |||||||||||||||||||
Total operating expenses | 246,476 | 241,614 | 720,960 | 721,286 | |||||||||||||||||||
Interest expense | 14,648 | 17,111 | 43,780 | 47,137 | |||||||||||||||||||
| Interest (income) and other (income) expense, net | (1,264) | (2,298) | (3,858) | (4,526) | |||||||||||||||||||
Loss on debt extinguishment | — | 5,850 | — | 5,850 | |||||||||||||||||||
Loss (gain) on sale of hotel property, net | 239 | — | (31,352) | — | |||||||||||||||||||
Income before income taxes | 37,506 | 23,107 | 144,523 | 76,210 | |||||||||||||||||||
Income tax expense | (4,097) | (469) | (5,823) | (618) | |||||||||||||||||||
Net income | 33,409 | 22,638 | 138,700 | 75,592 | |||||||||||||||||||
Less: Net income attributable to noncontrolling interests | (88) | (113) | (435) | (375) | |||||||||||||||||||
Net income attributable to the Company | 33,321 | 22,525 | 138,265 | 75,217 | |||||||||||||||||||
| Distributions to preferred stockholders | — | (2,454) | — | (7,362) | |||||||||||||||||||
| Net income attributable to common stockholders | $ | 33,321 | $ | 20,071 | $ | 138,265 | $ | 67,855 | |||||||||||||||
Earnings per share: | |||||||||||||||||||||||
Earnings per share available to common stockholders - basic | $ | 0.16 | $ | 0.10 | $ | 0.67 | $ | 0.33 | |||||||||||||||
Earnings per share available to common stockholders - diluted | $ | 0.16 | $ | 0.10 | $ | 0.67 | $ | 0.33 | |||||||||||||||
Weighted-average number of common shares outstanding: | |||||||||||||||||||||||
Basic | 205,168,563 | 205,407,644 | 204,905,719 | 206,896,023 | |||||||||||||||||||
Diluted | 207,417,547 | 206,392,934 | 207,006,375 | 207,918,506 | |||||||||||||||||||
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Non-GAAP Financial Measures
The Company uses the following non-GAAP financial measures that it believes are useful to investors as key measures of its operating performance: EBITDA, EBITDAre, Adjusted EBITDA, Hotel Adjusted EBITDA, Hotel Adjusted EBITDA Margin, FFO, Adjusted FFO, Adjusted FFO Per Share, and Free Cash Flow as well as measures derived from Hotel Adjusted EBITDA and Hotel Net Operating Income (Hotel NOI) such as EBITDA multiples and capitalization rates. The Company also presents Comparable Room Revenues, Comparable Total Revenues, Comparable Hotel Operating Expenses, Comparable Hotel Adjusted EBITDA and Comparable Hotel Adjusted EBITDA Margin. These measures should not be considered in isolation or as a substitute for measures of performance in accordance with U.S. GAAP. EBITDA, EBITDAre, Adjusted EBITDA, Hotel Adjusted EBITDA, Hotel Adjusted EBITDA Margin, FFO, Adjusted FFO, Adjusted FFO Per Share, and Free Cash Flow, measures derived from Hotel Adjusted EBITDA, Hotel NOI, Comparable Room Revenues, Comparable Total Revenues, Comparable Hotel Operating Expenses, Comparable Hotel Adjusted EBITDA and Comparable Hotel Adjusted EBITDA Margin, as calculated by the Company, may not be comparable to other companies that do not define such terms exactly as the Company.
Use and Limitations of Non-GAAP Financial Measures
The Company's management and Board of Directors use EBITDA, EBITDAre, Adjusted EBITDA, Hotel Adjusted EBITDA, FFO, Adjusted FFO, Adjusted FFO Per Share, Free Cash Flow, Comparable Room Revenues, Comparable Total Revenues, Comparable Hotel Operating Expenses, Comparable Hotel Adjusted EBITDA and Comparable Hotel Adjusted EBITDA Margin to evaluate the performance of the Company's hotels and to facilitate comparisons between the Company and other lodging REITs, hotel owners who are not REITs and other capital intensive companies. The use of these non-GAAP financial measures has certain limitations. These non-GAAP financial measures as presented by the Company may not be comparable to non-GAAP financial measures as calculated by other real estate companies. These measures do not reflect certain expenses or expenditures that the Company incurred and will incur, such as depreciation, interest and capital expenditures. The Company compensates for these limitations by separately considering the impact of these excluded items to the extent they are material to operating decisions or assessments of its operating performance. The Company's reconciliations to the most comparable U.S. GAAP financial measures, and the Company's consolidated statements of operations and comprehensive income and consolidated statements of cash flows, include interest expense, capital expenditures, and other excluded items, all of which should be considered when evaluating the Company's performance, as well as the usefulness of its non-GAAP financial measures.
These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with U.S. GAAP. They should not be considered as alternatives to operating profit, cash flow from operations, or any other operating performance measure prescribed by U.S. GAAP. These non-GAAP financial measures reflect additional ways of viewing the Company's operations that it believes, when viewed with the Company's U.S. GAAP results and the reconciliations to the corresponding U.S. GAAP financial measures, provide a more complete understanding of factors and trends affecting the Company's business than could be obtained absent this disclosure. The Company strongly encourages investors to review its financial information in its entirety and not to rely on a single financial measure.
EBITDA and EBITDAre
EBITDA represents net income (calculated in accordance with U.S. GAAP) excluding: (1) interest expense; (2) provision for income taxes, including income taxes applicable to sale of assets; and (3) depreciation and amortization. The Company computes EBITDAre in accordance with the National Association of Real Estate Investment Trusts ("Nareit") guidelines, as defined in its September 2017 white paper "Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate." EBITDAre represents net income (calculated in accordance with U.S. GAAP) adjusted for: (1) interest expense; (2) provision for income taxes, including income taxes applicable to sale of assets; (3) depreciation and amortization; (4) gains or losses on the disposition of depreciated property including gains or losses on change of control; (5) impairment write-downs of depreciated property and of investments in unconsolidated affiliates caused by a decrease in value of depreciated property in the affiliate; and (6) adjustments to reflect the entity's share of EBITDAre of unconsolidated affiliates.
The Company believes EBITDA and EBITDAre are useful to an investor in evaluating its operating performance because they help investors evaluate and compare the results of its operations from period to period by removing the impact of its capital structure (primarily interest expense) and its asset base (primarily depreciation and amortization, and in the case of EBITDAre, impairment and gains or losses on dispositions of depreciated property) from its operating results. In addition, covenants included in the Company's debt agreements use EBITDA as a measure of financial
7
compliance. The Company also uses EBITDA and EBITDAre as measures in determining the value of hotel acquisitions and dispositions.
FFO
The Company computes FFO in accordance with standards established by Nareit, which defines FFO as net income (calculated in accordance with U.S. GAAP) excluding gains or losses from sales of properties and impairment losses, plus real estate related depreciation and amortization. The Company believes that the presentation of FFO provides useful information to investors regarding its operating performance because it is a measure of the Company's operations without regard to specified non-cash items, such as real estate related depreciation and amortization and gains or losses on the sale of assets. The Company also uses FFO as one measure in assessing its operating results.
Adjustments to EBITDAre and FFO
The Company adjusts EBITDAre and FFO when evaluating its performance because it believes that the exclusion of certain additional items described below provides useful supplemental information to investors regarding its ongoing operating performance and that the presentation of Adjusted EBITDA and Adjusted FFO when combined with U.S. GAAP net income, EBITDAre and FFO, is beneficial to an investor's complete understanding of the Company's consolidated and property-level operating performance. The Company adjusts EBITDAre and FFO for the following items:
•Non-Cash Lease Expense and Other Amortization: The Company excludes the non-cash expense incurred from the straight line recognition of expense from its ground leases and other contractual obligations and the non-cash amortization of its favorable and unfavorable contracts, originally recorded in conjunction with certain hotel acquisitions. The Company excludes these non-cash items because they do not reflect the actual cash amounts due to the respective lessors in the current period and they are of lesser significance in evaluating the Company's actual performance for that period.
•Cumulative Effect of a Change in Accounting Principle: The Financial Accounting Standards Board promulgates new accounting standards that require or permit the consolidated statement of operations and comprehensive income to reflect the cumulative effect of a change in accounting principle. The Company excludes the effect of these adjustments, which include the accounting impact from prior periods, because they do not reflect the Company’s actual underlying performance for the current period.
•Gains or Losses from Debt Extinguishment: The Company excludes the effect of gains or losses recorded on debt extinguishment because these gains or losses result from transaction activity related to the Company’s capital structure that it believes are not indicative of the ongoing operating performance of the Company or its hotels.
•Hotel Acquisition Costs: The Company excludes hotel acquisition costs expensed during the period because it believes these transaction costs are not reflective of the ongoing performance of the Company or its hotels.
•Severance Costs: The Company excludes corporate severance costs, or reversals thereof, incurred with the termination of corporate-level employees and severance costs incurred at its hotels related to lease terminations or structured severance programs because the Company believes these costs do not reflect the ongoing performance of the Company or its hotels.
•Hotel Manager Transition and Hotel Pre-Opening Costs: The Company excludes the transition costs associated with a change in hotel manager and the pre-opening costs associated with the redevelopment or rebranding of a hotel because it believes these items do not reflect the ongoing performance of the Company or its hotels.
•Share-Based Compensation Expense: The Company excludes share-based compensation expense as it is a non-cash item. This adjustment aligns with the calculation of Adjusted EBITDA for the Company's financial covenant ratios under its credit facility, supporting consistency in its financial reporting and covenant compliance, as well as comparability with its peers.
•Other Items: From time to time the Company incurs costs or realizes gains that it considers outside the ordinary course of business and that it does not believe reflect the ongoing performance of the Company or its hotels. Such items may include, but are not limited to, the following: non-cash realized gains or losses on the Company's deferred compensation plan assets; management or franchise contract termination fees; terminated transaction costs; gains or losses from legal settlements; costs incurred related to natural disasters;
8
and gains on property insurance claim settlements, other than income related to business interruption insurance.
In addition, to derive Adjusted FFO, the Company excludes any unrealized fair value adjustments to interest rate swaps and the portion of its non-cash ground lease expense recognized as interest expense. The Company excludes these non-cash amounts because they do not reflect the underlying performance of the Company. Adjusted FFO margins are calculated as Adjusted FFO divided by total revenues.
Adjusted FFO Per Share
The Company calculates Adjusted FFO Per Share as its Adjusted FFO (defined as set forth above) divided by the weighted-average number of fully diluted shares of common stock and operating partnership units outstanding during the applicable period. The Company believes Adjusted FFO Per Share provides useful supplemental information to investors regarding its ongoing operating performance on a per-share basis and that presentation of Adjusted FFO Per Share should be considered together with, and not as a substitute for, diluted earnings per share calculated in accordance with U.S. GAAP.
Free Cash Flow
The Company calculates Free Cash Flow (or FCF) as Adjusted FFO (defined as set forth above) less capital expenditures as reported in the Company’s consolidated statement of cash flows. The Company believes the presentation of this metric provides useful information to investors regarding profitability as it reflects operating performance after capital expenditures required to maintain and enhance its portfolio. FCF margins are calculated as FCF divided by total revenues.
Hotel Adjusted EBITDA, Hotel NOI and Associated Metrics
The Company believes that Hotel Adjusted EBITDA provides its investors a useful financial measure to evaluate its hotel operating performance, excluding the impact of its capital structure (primarily interest), its asset base (primarily depreciation and amortization), and its corporate-level expenses. With respect to Hotel Adjusted EBITDA, the Company believes that excluding the effect of corporate-level expenses provides a more complete understanding of the operating results over which individual hotels and third-party management companies have direct control. The Company believes property-level results provide investors with supplemental information on the ongoing operational performance of its hotels and effectiveness of the third-party management companies operating its business on a property-level basis. Hotel Adjusted EBITDA Margins are calculated as Hotel Adjusted EBITDA divided by total hotel revenues. The Company also uses Hotel Adjusted EBITDA when calculating EBITDA multiples to evaluate acquisitions and dispositions. EBITDA multiples are calculated as the sales price divided by Hotel Adjusted EBITDA. The Company believes using EBITDA multiples allows for a consistent valuation method in comparing the purchase or sale value of properties. Hotel NOI is calculated as Hotel Adjusted EBITDA less the annual contractual capital reserve for renewal and replacement. The Company uses Hotel NOI when calculating capitalization rates, or cap rates, to evaluate acquisitions and dispositions. Cap rates are calculated as Hotel NOI divided by sales price. As with EBITDA multiples, the Company believes using cap rates allows for a consistent valuation method in comparing the purchase or sale value of properties.
Comparable Hotel Operating Statistics and Results
The Company believes that presenting comparable hotel operating statistics (such as ADR, occupancy, RevPAR, Total RevPAR and Available Rooms) and results (such as Room Revenues, Total Revenues, Hotel Operating Expenses, Hotel Adjusted EBITDA, and Hotel Adjusted EBITDA Margin) is useful to investors because these measures help facilitate year-over-year comparisons of the performance of hotels owned by the Company as of the reporting date. The Company's comparable portfolio includes hotels (i) owned and in operation by the Company for the entirety of the periods presented and (ii) acquired by the Company during the period as though the acquisition happened at the beginning of the period presented. The Company makes adjustments for recently acquired hotels to include operating statistics and results for periods prior to its ownership. As a result, changes as compared to periods prior to its ownership will not necessarily correspond to changes in its actual results. In addition, comparable metrics exclude results and operating statistics for hotels that were sold during the reporting period or held for sale at the end of the period. The Company believes these comparable measures provide more consistent metrics for comparing the performance of its hotels.
9
The Company's comparable portfolio for the nine months ended September 30, 2026 includes all of its hotels owned as of September 30, 2026 and excludes the Courtyard New York Manhattan/Fifth Avenue sold on May 1, 2026 and the Westin Washington D.C. City Center sold on February 19, 2025.
Reconciliations of Non-GAAP Measures
EBITDA, EBITDAre, Adjusted EBITDA and Hotel Adjusted EBITDA
The following tables are reconciliations of the Company's GAAP net income to EBITDA, EBITDAre, Adjusted EBITDA and Hotel Adjusted EBITDA (in thousands):
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net income | $ | 33,409 | $ | 22,638 | $ | 138,700 | $ | 75,592 | |||||||||||||||
| Interest expense | 14,648 | 17,111 | 43,780 | 47,137 | |||||||||||||||||||
| Income tax expense | 4,097 | 469 | 5,823 | 618 | |||||||||||||||||||
| Real estate related depreciation and amortization | 28,530 | 28,340 | 85,911 | 84,388 | |||||||||||||||||||
| EBITDA | 80,684 | 68,558 | 274,214 | 207,735 | |||||||||||||||||||
| Impairment losses | — | 1,076 | — | 1,076 | |||||||||||||||||||
| Loss (gain) on sale of hotel property, net | 239 | — | (31,352) | — | |||||||||||||||||||
EBITDAre | 80,923 | 69,634 | 242,862 | 208,811 | |||||||||||||||||||
| Non-cash lease expense and other amortization | 1,331 | 1,279 | 3,906 | 3,862 | |||||||||||||||||||
Share-based compensation expense (1) | 2,569 | 2,035 | 7,702 | 5,591 | |||||||||||||||||||
| Hotel pre-opening costs | — | 135 | — | 479 | |||||||||||||||||||
| Terminated transaction costs | — | 151 | — | 1,058 | |||||||||||||||||||
| Loss on debt extinguishment | — | 5,850 | — | 5,850 | |||||||||||||||||||
Other (2) | — | — | (1,158) | — | |||||||||||||||||||
| Adjusted EBITDA | 84,823 | 79,084 | 253,312 | 225,651 | |||||||||||||||||||
| Corporate expenses | 8,117 | 6,365 | 20,899 | 18,368 | |||||||||||||||||||
| Interest (income) and other (income) expense, net | (1,253) | (2,281) | (2,645) | (3,827) | |||||||||||||||||||
| Hotel Adjusted EBITDA | $ | 91,687 | $ | 83,168 | $ | 271,566 | $ | 240,192 | |||||||||||||||
(1) For each of the three months ended September 30, 2026 and 2025, amounts include less than $0.1 million of non-cash income related to the Company's deferred compensation plan. For the nine months ended September 30, 2026 and 2025, amounts include less than $0.1 million and $0.7 million, respectively, of non-cash income related to the Company's deferred compensation plan.
(2) Amount reflects the reversal of a previously recognized accrual related to a loss contingency.
| Full Year 2026 Guidance | |||||||||||
| Low End | High End | ||||||||||
| Net income | $ | 162,900 | $ | 168,900 | |||||||
| Interest expense | 59,760 | 58,760 | |||||||||
| Income tax expense | 6,000 | 7,000 | |||||||||
| Real estate related depreciation and amortization | 111,500 | 110,500 | |||||||||
| EBITDA | 340,160 | 345,160 | |||||||||
| Gain on sale of hotel property, net | (31,352) | (31,352) | |||||||||
EBITDAre | 308,808 | 313,808 | |||||||||
| Non-cash lease expense and other amortization | 5,350 | 5,350 | |||||||||
| Share-based compensation expense | 9,000 | 9,000 | |||||||||
Other (1) | (1,158) | (1,158) | |||||||||
| Adjusted EBITDA | $ | 322,000 | $ | 327,000 | |||||||
(1) Amount reflects the reversal of a previously recognized accrual related to a loss contingency.
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FFO and Adjusted FFO
The following tables are reconciliations of the Company's GAAP net income to FFO and Adjusted FFO (in thousands except per share amounts):
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Net income | $ | 33,409 | $ | 22,638 | $ | 138,700 | $ | 75,592 | ||||||||||||||||||
| Real estate related depreciation and amortization | 28,530 | 28,340 | 85,911 | 84,388 | ||||||||||||||||||||||
| Loss (gain) on sale of hotel property, net | 239 | — | (31,352) | — | ||||||||||||||||||||||
| Impairment losses | — | 1,076 | — | 1,076 | ||||||||||||||||||||||
| FFO | 62,178 | 52,054 | 193,259 | 161,056 | ||||||||||||||||||||||
| Distributions to preferred stockholders | — | (2,454) | — | (7,362) | ||||||||||||||||||||||
| FFO available to common stock and unit holders | 62,178 | 49,600 | 193,259 | 153,694 | ||||||||||||||||||||||
| Non-cash lease expense and other amortization | 1,335 | 1,472 | 4,162 | 4,417 | ||||||||||||||||||||||
Share-based compensation expense (1) | 2,569 | 2,035 | 7,702 | 5,591 | ||||||||||||||||||||||
| Terminated transaction costs | — | 151 | — | 1,058 | ||||||||||||||||||||||
| Loss on debt extinguishment | — | 5,850 | — | 5,850 | ||||||||||||||||||||||
| Hotel pre-opening costs | — | 135 | — | 479 | ||||||||||||||||||||||
Other (2) | — | — | (1,158) | — | ||||||||||||||||||||||
| Adjusted FFO available to common stock and unit holders | $ | 66,082 | $ | 59,243 | $ | 203,965 | $ | 171,089 | ||||||||||||||||||
| Adjusted FFO available to common stock and unit holders, per diluted share | $ | 0.32 | $ | 0.29 | $ | 0.98 | $ | 0.82 | ||||||||||||||||||
| Diluted weighted average shares and units | 207,960 | 207,428 | 207,721 | 208,942 | ||||||||||||||||||||||
(1) For each of the three months ended September 30, 2026 and 2025, amounts include less than $0.1 million of non-cash income related to the Company's deferred compensation plan. For the nine months ended September 30, 2026 and 2025, amounts include less than $0.1 million and $0.7 million, respectively, of non-cash income related to the Company's deferred compensation plan.
(2) Amount reflects the reversal of a previously recognized accrual related to a loss contingency.
| Full Year 2026 Guidance | |||||||||||||||||||||||
| Low End | High End | ||||||||||||||||||||||
| Net income | $ | 162,900 | $ | 168,900 | |||||||||||||||||||
| Real estate related depreciation and amortization | 111,500 | 110,500 | |||||||||||||||||||||
| Gain on sale of hotel property, net | (31,352) | (31,352) | |||||||||||||||||||||
| FFO available to common stock and unit holders | 243,048 | 248,048 | |||||||||||||||||||||
| Non-cash lease expense and other amortization | 5,610 | 5,610 | |||||||||||||||||||||
| Share-based compensation expense | 9,000 | 9,000 | |||||||||||||||||||||
Other (1) | (1,158) | (1,158) | |||||||||||||||||||||
| Adjusted FFO available to common stock and unit holders | $ | 256,500 | $ | 261,500 | |||||||||||||||||||
| Adjusted FFO available to common stock and unit holders, per diluted share | $ | 1.24 | $ | 1.26 | |||||||||||||||||||
| Diluted weighted average shares and units | 207,500 | 207,500 | |||||||||||||||||||||
11
Reconciliation of Comparable Operating Results
The following presents the Room Revenues, Total Revenues, Hotel Operating Expenses, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA Margin together with comparable prior year results (in thousands):
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Total Room Revenues | $ | 195,451 | $ | 189,088 | $ | 567,205 | $ | 550,443 | |||||||||||||||
Room revenues from sold hotels (1) | — | (5,578) | (5,314) | (17,116) | |||||||||||||||||||
| Comparable Room Revenues | $ | 195,451 | $ | 183,510 | $ | 561,891 | $ | 533,327 | |||||||||||||||
| Total Revenues | $ | 297,605 | $ | 285,384 | $ | 874,053 | $ | 845,957 | |||||||||||||||
Total revenues from sold hotels (1) | — | (5,671) | (5,533) | (18,151) | |||||||||||||||||||
| Comparable Total Revenues | $ | 297,605 | $ | 279,713 | $ | 868,520 | $ | 827,806 | |||||||||||||||
| Hotel Operating Expenses | $ | 205,918 | $ | 202,216 | $ | 602,487 | $ | 605,765 | |||||||||||||||
Hotel operating expenses from sold hotels (1) | — | (4,038) | (4,748) | (14,222) | |||||||||||||||||||
| Comparable Hotel Operating Expenses | $ | 205,918 | $ | 198,178 | $ | 597,739 | $ | 591,543 | |||||||||||||||
| Hotel Adjusted EBITDA | $ | 91,687 | $ | 83,168 | $ | 271,566 | $ | 240,192 | |||||||||||||||
Hotel Adjusted EBITDA from sold hotels (1) | — | (1,633) | (785) | (3,929) | |||||||||||||||||||
| Comparable Hotel Adjusted EBITDA | $ | 91,687 | $ | 81,535 | $ | 270,781 | $ | 236,263 | |||||||||||||||
| Hotel Adjusted EBITDA Margin | 30.81 | % | 29.14 | % | 31.07 | % | 28.39 | % | |||||||||||||||
Hotel Adjusted EBITDA Margin from sold hotels (1) | - bps | 1 bps | 11 bps | 15 bps | |||||||||||||||||||
| Comparable Hotel Adjusted EBITDA Margin | 30.81 | % | 29.15 | % | 31.18 | % | 28.54 | % | |||||||||||||||
(1) Amounts represent the operating results for the Courtyard New York Manhattan/Fifth Avenue sold on May 1, 2026 and the Westin Washington D.C. City Center sold on February 19, 2025.
12
Selected Quarterly Comparable Operating Information
The following tables are presented to provide investors with selected quarterly comparable operating information for the Company's current portfolio of 35 hotels with 9,479 rooms.
| Quarter 1, 2025 | Quarter 2, 2025 | Quarter 3, 2025 | Quarter 4, 2025 | Full Year 2025 | |||||||||||||||||||||||||
| ADR | $ | 278.15 | $ | 294.96 | $ | 281.20 | $ | 291.45 | $ | 286.60 | |||||||||||||||||||
| Occupancy | 66.4 | % | 76.3 | % | 75.9 | % | 67.6 | % | 71.6 | % | |||||||||||||||||||
| RevPAR | $ | 184.76 | $ | 225.08 | $ | 213.43 | $ | 196.96 | $ | 205.11 | |||||||||||||||||||
| Total RevPAR | $ | 291.62 | $ | 350.21 | $ | 324.69 | $ | 307.75 | $ | 318.63 | |||||||||||||||||||
| Revenues (in thousands) | $ | 248,943 | $ | 302,277 | $ | 283,334 | $ | 268,545 | $ | 1,103,099 | |||||||||||||||||||
| Hotel Adjusted EBITDA (in thousands) | $ | 60,989 | $ | 94,645 | $ | 83,627 | $ | 73,973 | $ | 313,234 | |||||||||||||||||||
| Hotel Adjusted EBITDA Margin | 24.50 | % | 31.31 | % | 29.52 | % | 27.55 | % | 28.40 | % | |||||||||||||||||||
| Available Rooms | 853,650 | 863,135 | 872,620 | 872,620 | 3,462,025 | ||||||||||||||||||||||||
| Quarter 1, 2026 | Quarter 2, 2026 | Quarter 3, 2026 | |||||||||||||||||||||
| ADR | $ | 285.26 | $ | 308.47 | $ | 292.06 | |||||||||||||||||
| Occupancy | 66.1 | % | 78.1 | % | 77.9 | % | |||||||||||||||||
| RevPAR | $ | 188.52 | $ | 240.78 | $ | 227.48 | |||||||||||||||||
| Total RevPAR | $ | 298.85 | $ | 369.68 | $ | 345.61 | |||||||||||||||||
| Revenues (in thousands) | $ | 255,112 | $ | 318,894 | $ | 301,398 | |||||||||||||||||
| Hotel Adjusted EBITDA (in thousands) | $ | 65,602 | $ | 114,235 | $ | 93,764 | |||||||||||||||||
| Hotel Adjusted EBITDA Margin | 25.71 | % | 35.82 | % | 31.11 | % | |||||||||||||||||
| Available Rooms | 853,650 | 862,619 | 872,068 | ||||||||||||||||||||
13
| Market Capitalization as of September 30, 2026 | ||||||||
| (in thousands) | ||||||||
| Enterprise Value | ||||||||
| Common equity capitalization (at September 30, 2026 closing price of $12.36/share) | $ | 2,554,236 | ||||||
| Consolidated debt (face amount) | 1,100,000 | |||||||
| Cash and cash equivalents | (139,963) | |||||||
| Total enterprise value | $ | 3,514,273 | ||||||
| Share Reconciliation | ||||||||
| Common shares outstanding | 204,611 | |||||||
| Operating partnership units | 590 | |||||||
| Unvested restricted stock held by management and employees | 887 | |||||||
| Shares vested under deferred compensation plan | 565 | |||||||
| Combined shares and units | 206,653 | |||||||
| Debt Summary as of September 30, 2026 | ||||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||
| Outstanding | ||||||||||||||||||||||||||
| Loan | Interest Rate | Principal | Maturity | |||||||||||||||||||||||
| Unsecured term loan | SOFR + 1.35% | $ | 500,000 | January 2028 (1) | ||||||||||||||||||||||
| Unsecured term loan | SOFR + 1.35% | 300,000 | January 2029 (1) | |||||||||||||||||||||||
| Unsecured term loan | SOFR + 1.35% | 300,000 | January 2030 | |||||||||||||||||||||||
| Senior unsecured credit facility | SOFR + 1.40% | — | January 2030 (1) | |||||||||||||||||||||||
| Total debt | 1,100,000 | |||||||||||||||||||||||||
Unamortized debt issuance costs (2) | (869) | |||||||||||||||||||||||||
| Debt, net of unamortized debt issuance costs | $ | 1,099,131 | ||||||||||||||||||||||||
| Debt Metrics | ||||||||||||||||||||||||||
Weighted-average interest rate (3) | 5.1% | |||||||||||||||||||||||||
Percent fixed rate (3) | 48% | |||||||||||||||||||||||||
Net debt to EBITDA (4) | 3.0x | |||||||||||||||||||||||||
| Average years to maturity | 2.1 | |||||||||||||||||||||||||
| Average years to maturity, including extensions | 2.8 | |||||||||||||||||||||||||
(1) Maturity date may be extended for two six-month periods upon the payment of applicable fees and the satisfaction of certain customary conditions.
(2) Excludes debt issuance costs related to the Company's senior unsecured credit facility, which are included within Prepaid and Other Assets on the accompanying consolidated balance sheet.
(3) Including the effect of interest rate swaps as of September 30, 2026.
(4) Calculated using trailing 12-month Adjusted EBITDA as of September 30, 2026.
14
Hotel Information as of November 3, 2026
| Hotel | Rooms | Location | Franchisor | Contract Expiration | Operator | Contract Expiration | Ground Lease Expiration | Mortgage Debt | ||||||||||||||||||
| AC Hotel Minneapolis Downtown | 245 | Minneapolis, MN | Marriott | Oct 2041 | Sage Hospitality | At will with no fee | - | - | ||||||||||||||||||
| Atlanta Marriott Alpharetta | 318 | Atlanta, GA | Marriott | Sep 2050 (1) | Aimbridge Hospitality | At will with no fee | - | - | ||||||||||||||||||
| Bourbon Orleans Hotel | 220 | New Orleans, LA | Independent | - | Aimbridge Hospitality | At will with no fee | - | - | ||||||||||||||||||
| Cavallo Point, The Lodge at the Golden Gate | 142 | Sausalito, CA | Independent | - | Passport Resorts | At will with fee | 2066 | - | ||||||||||||||||||
| Chicago Marriott Downtown Magnificent Mile | 1,200 | Chicago, IL | N/A | - | Marriott | Dec 2038 (2) | - | - | ||||||||||||||||||
| Chico Hot Springs Resort & Day Spa | 117 | Pray, MT | Independent | - | EOS Hospitality | At will with no fee | - | - | ||||||||||||||||||
| Courtyard Denver Downtown | 177 | Denver, CO | Marriott | Oct 2027 | Sage Hospitality | At will with no fee | - | - | ||||||||||||||||||
| Courtyard New York Manhattan/Midtown East | 321 | New York, NY | Marriott | Aug 2042 | Highgate Hotels | At will with no fee | - | - | ||||||||||||||||||
| Embassy Suites by Hilton Bethesda | 272 | Bethesda, MD | Hilton | Feb 2037 | Sage Hospitality | At will with no fee | 2087 | - | ||||||||||||||||||
| Havana Cabana Key West | 106 | Key West, FL | Independent | - | EOS Hospitality | At will with no fee | - | - | ||||||||||||||||||
| Henderson Beach Resort | 270 | Destin, FL | Independent | - | Aimbridge Hospitality | At will with no fee | - | - | ||||||||||||||||||
| Henderson Park Inn | 37 | Destin, FL | Independent | - | Aimbridge Hospitality | At will with no fee | - | - | ||||||||||||||||||
| Hilton Garden Inn New York/Times Square Central | 282 | New York, NY | Hilton | Jun 2033 | Highgate Hotels | At will with no fee | - | - | ||||||||||||||||||
| Hotel Champlain Burlington | 252 | Burlington, VT | Hilton | Jun 2034 | Aimbridge Hospitality | At will with no fee | - | - | ||||||||||||||||||
| Hotel Clio | 199 | Denver, CO | Marriott | Oct 2036 | Sage Hospitality | At will with no fee | - | - | ||||||||||||||||||
| Hotel Emblem San Francisco | 96 | San Francisco, CA | Independent | - | Parable Hospitality | At will with no fee | - | - | ||||||||||||||||||
| Kimpton Hotel Palomar Phoenix | 242 | Phoenix, AZ | N/A | - | IHG Hotels & Resorts | Dec 2027 or upon sale | 2085 | - | ||||||||||||||||||
| Kimpton Shorebreak Fort Lauderdale Beach Resort | 96 | Fort Lauderdale, FL | IHG Hotels & Resorts | Apr 2041 | HEI Hotels & Resorts | At will with no fee | - | - | ||||||||||||||||||
| Kimpton Shorebreak Huntington Beach Resort | 157 | Huntington Beach, CA | N/A | - | IHG Hotels & Resorts | At will with no fee | - | - | ||||||||||||||||||
| L'Auberge de Sedona | 158 | Sedona, AZ | Independent | - | Aimbridge Hospitality | At will with no fee | 2124 | - | ||||||||||||||||||
| Lake Austin Spa Resort | 40 | Austin, TX | Independent | - | EOS Hospitality | At will with no fee | - | - | ||||||||||||||||||
| Margaritaville Beach House Key West | 186 | Key West, FL | Margaritaville | Apr 2041 | Ocean Properties | Jul 2027 | - | - | ||||||||||||||||||
| Salt Lake City Marriott Downtown at City Creek | 510 | Salt Lake City, UT | Marriott | Sep 2050 (1) | HEI Hotels & Resorts | At will with no fee | 2056/2106 | - | ||||||||||||||||||
| The Bellmoor Inn & Spa | 79 | Rehoboth Beach, DE | Independent | - | EOS Hospitality | At will with no fee | - | - | ||||||||||||||||||
| The Dagny Boston | 403 | Boston, MA | Independent | - | Aimbridge Hospitality | At will with no fee | - | - | ||||||||||||||||||
| The Gwen | 311 | Chicago, IL | Marriott | Sep 2035 | HEI Hotels & Resorts | At will with no fee | - | - | ||||||||||||||||||
| The Hythe Vail | 344 | Vail, CO | Marriott | Dec 2041 | Vail Resorts | At will with fee | - | - | ||||||||||||||||||
| The Landing Lake Tahoe Resort & Spa | 82 | South Lake Tahoe, CA | Independent | - | Aimbridge Hospitality | At will with no fee | - | - | ||||||||||||||||||
| The Lindy Renaissance Charleston Hotel | 167 | Charleston, SC | Marriott | Dec 2031 | Aimbridge Hospitality | At will with no fee | - | - | ||||||||||||||||||
| The Lodge at Sonoma Resort | 182 | Sonoma, CA | Marriott | Dec 2035 | Sage Hospitality | At will with no fee | - | - | ||||||||||||||||||
| Tranquility Bay Beachfront Resort | 103 | Marathon, FL | Independent | - | EOS Hospitality | At will with no fee | - | - | ||||||||||||||||||
| Westin Boston Seaport District | 793 | Boston, MA | Marriott | Dec 2044 (3) | Aimbridge Hospitality | At will with no fee | 2099 | - | ||||||||||||||||||
| Westin Fort Lauderdale Beach Resort | 432 | Fort Lauderdale, FL | Marriott | Dec 2034 | HEI Hotels & Resorts | At will with no fee | - | - | ||||||||||||||||||
| Westin San Diego Bayview | 436 | San Diego, CA | Marriott | Dec 2040 | Aimbridge Hospitality | At will with no fee | - | - | ||||||||||||||||||
| Worthington Renaissance Fort Worth Hotel | 504 | Fort Worth, TX | N/A | - | Marriott | Dec 2030 (4) | - | - | ||||||||||||||||||
(1) The franchise agreement may be terminated at Marriott's option after September 2040. | ||
(2) Marriott has two 10-year options to extend the management agreement. | ||
(3) On March 19, 2026, the Company entered into a new franchise agreement with Marriott effective January 1, 2027. | ||
(4) Marriott is entitled to one ten-year extension option if they achieve a certain level of operating profit for the three-year period ending December 31, 2029. Marriott is entitled to a second ten-year extension option if they achieve a certain level of operating profit for the three-year period ending December 31, 2039. | ||
15
| Operating Statistics – Third Quarter | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| ADR | Occupancy | RevPAR | Total RevPAR | ||||||||||||||||||||||||||||||||||||||||||||||||||
| 3Q 2026 | 3Q 2025 | Change | 3Q 2026 | 3Q 2025 | Change | 3Q 2026 | 3Q 2025 | Change | 3Q 2026 | 3Q 2025 | Change | ||||||||||||||||||||||||||||||||||||||||||
| AC Hotel Minneapolis Downtown | $ | 169.14 | $ | 177.13 | (4.5) | % | 72.4 | % | 71.7 | % | 0.7 | % | $ | 122.47 | $ | 126.97 | (3.5) | % | $ | 141.30 | $ | 145.13 | (2.6) | % | |||||||||||||||||||||||||||||
| Atlanta Marriott Alpharetta | $ | 169.73 | $ | 162.13 | 4.7 | % | 63.0 | % | 68.3 | % | (5.3) | % | $ | 106.89 | $ | 110.74 | (3.5) | % | $ | 143.66 | $ | 153.08 | (6.2) | % | |||||||||||||||||||||||||||||
| Bourbon Orleans Hotel | $ | 193.60 | $ | 177.09 | 9.3 | % | 56.4 | % | 61.4 | % | (5.0) | % | $ | 109.13 | $ | 108.73 | 0.4 | % | $ | 156.03 | $ | 148.88 | 4.8 | % | |||||||||||||||||||||||||||||
| Cavallo Point, The Lodge at the Golden Gate | $ | 607.01 | $ | 630.83 | (3.8) | % | 77.8 | % | 64.1 | % | 13.7 | % | $ | 472.41 | $ | 404.65 | 16.7 | % | $ | 1,174.77 | $ | 972.16 | 20.8 | % | |||||||||||||||||||||||||||||
| Chicago Marriott Downtown Magnificent Mile | $ | 273.00 | $ | 268.20 | 1.8 | % | 84.4 | % | 78.5 | % | 5.9 | % | $ | 230.51 | $ | 210.63 | 9.4 | % | $ | 358.50 | $ | 330.22 | 8.6 | % | |||||||||||||||||||||||||||||
| Chico Hot Springs Resort & Day Spa | $ | 279.18 | $ | 244.33 | 14.3 | % | 76.2 | % | 84.4 | % | (8.2) | % | $ | 212.76 | $ | 206.13 | 3.2 | % | $ | 467.77 | $ | 458.61 | 2.0 | % | |||||||||||||||||||||||||||||
| Courtyard Denver Downtown | $ | 235.57 | $ | 234.38 | 0.5 | % | 85.6 | % | 84.8 | % | 0.8 | % | $ | 201.65 | $ | 198.72 | 1.5 | % | $ | 224.68 | $ | 223.64 | 0.5 | % | |||||||||||||||||||||||||||||
| Courtyard New York Manhattan/Midtown East | $ | 375.93 | $ | 349.37 | 7.6 | % | 96.2 | % | 90.8 | % | 5.4 | % | $ | 361.50 | $ | 317.16 | 14.0 | % | $ | 371.60 | $ | 326.10 | 14.0 | % | |||||||||||||||||||||||||||||
| Embassy Suites by Hilton Bethesda | $ | 164.29 | $ | 161.77 | 1.6 | % | 72.8 | % | 69.6 | % | 3.2 | % | $ | 119.63 | $ | 112.65 | 6.2 | % | $ | 140.07 | $ | 132.20 | 6.0 | % | |||||||||||||||||||||||||||||
| Havana Cabana Key West | $ | 176.59 | $ | 180.26 | (2.0) | % | 64.5 | % | 42.3 | % | 22.2 | % | $ | 113.92 | $ | 76.23 | 49.4 | % | $ | 194.83 | $ | 129.32 | 50.7 | % | |||||||||||||||||||||||||||||
| Henderson Beach Resort | $ | 442.00 | $ | 421.36 | 4.9 | % | 75.3 | % | 70.2 | % | 5.1 | % | $ | 332.64 | $ | 295.87 | 12.4 | % | $ | 644.63 | $ | 532.37 | 21.1 | % | |||||||||||||||||||||||||||||
| Henderson Park Inn | $ | 666.04 | $ | 618.97 | 7.6 | % | 84.3 | % | 82.1 | % | 2.2 | % | $ | 561.75 | $ | 508.05 | 10.6 | % | $ | 971.38 | $ | 846.00 | 14.8 | % | |||||||||||||||||||||||||||||
| Hilton Garden Inn New York/Times Square Central | $ | 279.75 | $ | 277.38 | 0.9 | % | 95.6 | % | 98.1 | % | (2.5) | % | $ | 267.55 | $ | 272.24 | (1.7) | % | $ | 295.56 | $ | 304.92 | (3.1) | % | |||||||||||||||||||||||||||||
| Hotel Champlain Burlington | $ | 275.92 | $ | 292.04 | (5.5) | % | 82.1 | % | 83.3 | % | (1.2) | % | $ | 226.54 | $ | 243.38 | (6.9) | % | $ | 303.40 | $ | 333.67 | (9.1) | % | |||||||||||||||||||||||||||||
| Hotel Clio | $ | 350.62 | $ | 332.38 | 5.5 | % | 83.5 | % | 85.9 | % | (2.4) | % | $ | 292.93 | $ | 285.36 | 2.7 | % | $ | 457.66 | $ | 463.09 | (1.2) | % | |||||||||||||||||||||||||||||
| Hotel Emblem San Francisco | $ | 178.41 | $ | 188.89 | (5.5) | % | 85.4 | % | 58.7 | % | 26.7 | % | $ | 152.41 | $ | 110.96 | 37.4 | % | $ | 186.60 | $ | 137.19 | 36.0 | % | |||||||||||||||||||||||||||||
| Kimpton Hotel Palomar Phoenix | $ | 175.44 | $ | 183.97 | (4.6) | % | 72.4 | % | 52.5 | % | 19.9 | % | $ | 127.01 | $ | 96.63 | 31.4 | % | $ | 210.48 | $ | 171.59 | 22.7 | % | |||||||||||||||||||||||||||||
| Kimpton Shorebreak Fort Lauderdale Beach Resort | $ | 125.36 | $ | 121.60 | 3.1 | % | 54.9 | % | 58.1 | % | (3.2) | % | $ | 68.80 | $ | 70.67 | (2.6) | % | $ | 161.62 | $ | 163.04 | (0.9) | % | |||||||||||||||||||||||||||||
| Kimpton Shorebreak Huntington Beach Resort | $ | 367.38 | $ | 346.45 | 6.0 | % | 86.5 | % | 87.8 | % | (1.3) | % | $ | 317.96 | $ | 304.02 | 4.6 | % | $ | 436.77 | $ | 424.88 | 2.8 | % | |||||||||||||||||||||||||||||
L'Auberge de Sedona (1) | $ | 616.20 | $ | 568.27 | 8.4 | % | 58.4 | % | 41.0 | % | 17.4 | % | $ | 359.65 | $ | 233.12 | 54.3 | % | $ | 653.73 | $ | 479.80 | 36.3 | % | |||||||||||||||||||||||||||||
| Lake Austin Spa Resort | $ | 979.95 | $ | 1,071.87 | (8.6) | % | 41.6 | % | 41.8 | % | (0.2) | % | $ | 407.69 | $ | 448.26 | (9.1) | % | $ | 1,122.65 | $ | 1,148.41 | (2.2) | % | |||||||||||||||||||||||||||||
| Margaritaville Beach House Key West | $ | 270.97 | $ | 281.34 | (3.7) | % | 70.9 | % | 70.8 | % | 0.1 | % | $ | 192.20 | $ | 199.20 | (3.5) | % | $ | 278.30 | $ | 287.52 | (3.2) | % | |||||||||||||||||||||||||||||
| Salt Lake City Marriott Downtown at City Creek | $ | 199.90 | $ | 202.16 | (1.1) | % | 72.5 | % | 70.7 | % | 1.8 | % | $ | 144.92 | $ | 142.89 | 1.4 | % | $ | 203.26 | $ | 197.87 | 2.7 | % | |||||||||||||||||||||||||||||
| The Dagny Boston | $ | 375.34 | $ | 333.73 | 12.5 | % | 92.4 | % | 92.3 | % | 0.1 | % | $ | 346.90 | $ | 307.87 | 12.7 | % | $ | 375.12 | $ | 338.76 | 10.7 | % | |||||||||||||||||||||||||||||
| The Gwen | $ | 395.84 | $ | 355.07 | 11.5 | % | 78.8 | % | 78.5 | % | 0.3 | % | $ | 311.85 | $ | 278.81 | 11.9 | % | $ | 465.74 | $ | 425.56 | 9.4 | % | |||||||||||||||||||||||||||||
| The Hythe Vail | $ | 306.65 | $ | 289.11 | 6.1 | % | 70.9 | % | 68.4 | % | 2.5 | % | $ | 217.37 | $ | 197.67 | 10.0 | % | $ | 399.44 | $ | 366.12 | 9.1 | % | |||||||||||||||||||||||||||||
| The Landing Lake Tahoe Resort & Spa | $ | 582.56 | $ | 550.14 | 5.9 | % | 84.7 | % | 83.9 | % | 0.8 | % | $ | 493.45 | $ | 461.76 | 6.9 | % | $ | 849.60 | $ | 799.18 | 6.3 | % | |||||||||||||||||||||||||||||
| The Lindy Renaissance Charleston Hotel | $ | 304.86 | $ | 307.34 | (0.8) | % | 86.6 | % | 87.1 | % | (0.5) | % | $ | 264.05 | $ | 267.55 | (1.3) | % | $ | 349.23 | $ | 357.41 | (2.3) | % | |||||||||||||||||||||||||||||
| The Lodge at Sonoma Resort | $ | 458.63 | $ | 462.55 | (0.8) | % | 79.6 | % | 79.5 | % | 0.1 | % | $ | 365.07 | $ | 367.71 | (0.7) | % | $ | 549.38 | $ | 565.02 | (2.8) | % | |||||||||||||||||||||||||||||
| Tranquility Bay Beachfront Resort | $ | 448.16 | $ | 460.04 | (2.6) | % | 63.1 | % | 63.2 | % | (0.1) | % | $ | 282.72 | $ | 290.56 | (2.7) | % | $ | 378.36 | $ | 385.28 | (1.8) | % | |||||||||||||||||||||||||||||
| Westin Boston Seaport District | $ | 287.43 | $ | 275.75 | 4.2 | % | 89.7 | % | 89.7 | % | — | % | $ | 257.83 | $ | 247.23 | 4.3 | % | $ | 391.21 | $ | 367.80 | 6.4 | % | |||||||||||||||||||||||||||||
| Westin Fort Lauderdale Beach Resort | $ | 168.25 | $ | 172.32 | (2.4) | % | 60.0 | % | 64.4 | % | (4.4) | % | $ | 100.94 | $ | 110.93 | (9.0) | % | $ | 247.47 | $ | 276.99 | (10.7) | % | |||||||||||||||||||||||||||||
| Westin San Diego Bayview | $ | 228.73 | $ | 223.17 | 2.5 | % | 81.6 | % | 82.5 | % | (0.9) | % | $ | 186.66 | $ | 184.15 | 1.4 | % | $ | 234.72 | $ | 233.79 | 0.4 | % | |||||||||||||||||||||||||||||
| Worthington Renaissance Fort Worth Hotel | $ | 196.17 | $ | 191.17 | 2.6 | % | 65.0 | % | 66.1 | % | (1.1) | % | $ | 127.55 | $ | 126.37 | 0.9 | % | $ | 224.95 | $ | 224.60 | 0.2 | % | |||||||||||||||||||||||||||||
Comparable Total (2) | $ | 290.46 | $ | 279.91 | 3.8 | % | 77.8 | % | 75.8 | % | 2.0 | % | $ | 226.01 | $ | 212.06 | 6.6 | % | $ | 344.13 | $ | 323.24 | 6.5 | % | |||||||||||||||||||||||||||||
(1) During the fourth quarter 2025, Orchards Inn Sedona and L'Auberge de Sedona were combined and now operate as one hotel. Amounts presented have been adjusted to reflect the combination.
(2) Amounts exclude the Courtyard New York Manhattan/Fifth Avenue which was sold in 2026.
16
17
| Operating Statistics – Year to Date | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| ADR | Occupancy | RevPAR | Total RevPAR | ||||||||||||||||||||||||||||||||||||||||||||||||||
| YTD 2026 | YTD 2025 | Change | YTD 2026 | YTD 2025 | Change | YTD 2026 | YTD 2025 | Change | YTD 2026 | YTD 2025 | Change | ||||||||||||||||||||||||||||||||||||||||||
| AC Hotel Minneapolis Downtown | $ | 159.71 | $ | 158.85 | 0.5 | % | 61.5 | % | 60.4 | % | 1.1 | % | $ | 98.17 | $ | 95.89 | 2.4 | % | $ | 113.94 | $ | 110.98 | 2.7 | % | |||||||||||||||||||||||||||||
| Atlanta Marriott Alpharetta | $ | 171.14 | $ | 164.45 | 4.1 | % | 63.9 | % | 67.7 | % | (3.8) | % | $ | 109.43 | $ | 111.27 | (1.7) | % | $ | 156.56 | $ | 156.76 | (0.1) | % | |||||||||||||||||||||||||||||
| Bourbon Orleans Hotel | $ | 237.62 | $ | 235.13 | 1.1 | % | 67.5 | % | 67.7 | % | (0.2) | % | $ | 160.41 | $ | 159.08 | 0.8 | % | $ | 219.90 | $ | 208.23 | 5.6 | % | |||||||||||||||||||||||||||||
| Cavallo Point, The Lodge at the Golden Gate | $ | 608.85 | $ | 581.03 | 4.8 | % | 71.8 | % | 59.6 | % | 12.2 | % | $ | 437.19 | $ | 346.57 | 26.1 | % | $ | 1,117.48 | $ | 900.23 | 24.1 | % | |||||||||||||||||||||||||||||
| Chicago Marriott Downtown Magnificent Mile | $ | 265.42 | $ | 258.90 | 2.5 | % | 68.7 | % | 64.6 | % | 4.1 | % | $ | 182.46 | $ | 167.19 | 9.1 | % | $ | 298.24 | $ | 279.25 | 6.8 | % | |||||||||||||||||||||||||||||
| Chico Hot Springs Resort & Day Spa | $ | 238.88 | $ | 233.04 | 2.5 | % | 61.5 | % | 69.4 | % | (7.9) | % | $ | 146.94 | $ | 161.73 | (9.1) | % | $ | 345.08 | $ | 373.10 | (7.5) | % | |||||||||||||||||||||||||||||
| Courtyard Denver Downtown | $ | 221.05 | $ | 213.38 | 3.6 | % | 81.0 | % | 80.1 | % | 0.9 | % | $ | 179.05 | $ | 170.99 | 4.7 | % | $ | 202.62 | $ | 191.69 | 5.7 | % | |||||||||||||||||||||||||||||
| Courtyard New York Manhattan/Fifth Avenue | $ | 252.33 | $ | 250.95 | 0.5 | % | 92.9 | % | 95.2 | % | (2.3) | % | $ | 234.30 | $ | 238.83 | (1.9) | % | $ | 243.94 | $ | 244.17 | (0.1) | % | |||||||||||||||||||||||||||||
| Courtyard New York Manhattan/Midtown East | $ | 346.35 | $ | 319.48 | 8.4 | % | 83.7 | % | 90.0 | % | (6.3) | % | $ | 289.87 | $ | 287.66 | 0.8 | % | $ | 298.30 | $ | 297.05 | 0.4 | % | |||||||||||||||||||||||||||||
| Embassy Suites by Hilton Bethesda | $ | 174.42 | $ | 169.96 | 2.6 | % | 69.4 | % | 67.9 | % | 1.5 | % | $ | 121.02 | $ | 115.35 | 4.9 | % | $ | 140.99 | $ | 134.84 | 4.6 | % | |||||||||||||||||||||||||||||
| Havana Cabana Key West | $ | 251.20 | $ | 270.83 | (7.2) | % | 73.6 | % | 72.4 | % | 1.2 | % | $ | 184.84 | $ | 195.97 | (5.7) | % | $ | 275.97 | $ | 283.08 | (2.5) | % | |||||||||||||||||||||||||||||
| Henderson Beach Resort | $ | 421.42 | $ | 401.22 | 5.0 | % | 65.0 | % | 60.7 | % | 4.3 | % | $ | 274.08 | $ | 243.64 | 12.5 | % | $ | 527.97 | $ | 470.89 | 12.1 | % | |||||||||||||||||||||||||||||
| Henderson Park Inn | $ | 654.12 | $ | 589.54 | 11.0 | % | 71.3 | % | 72.8 | % | (1.5) | % | $ | 466.19 | $ | 428.92 | 8.7 | % | $ | 789.11 | $ | 715.24 | 10.3 | % | |||||||||||||||||||||||||||||
| Hilton Garden Inn New York/Times Square Central | $ | 254.90 | $ | 263.89 | (3.4) | % | 92.3 | % | 88.1 | % | 4.2 | % | $ | 235.31 | $ | 232.51 | 1.2 | % | $ | 263.27 | $ | 262.76 | 0.2 | % | |||||||||||||||||||||||||||||
| Hotel Champlain Burlington | $ | 221.62 | $ | 223.85 | (1.0) | % | 67.9 | % | 71.6 | % | (3.7) | % | $ | 150.51 | $ | 160.20 | (6.0) | % | $ | 217.31 | $ | 230.50 | (5.7) | % | |||||||||||||||||||||||||||||
| Hotel Clio | $ | 335.79 | $ | 319.01 | 5.3 | % | 78.9 | % | 78.5 | % | 0.4 | % | $ | 265.00 | $ | 250.31 | 5.9 | % | $ | 427.49 | $ | 419.65 | 1.9 | % | |||||||||||||||||||||||||||||
| Hotel Emblem San Francisco | $ | 225.20 | $ | 207.65 | 8.5 | % | 77.4 | % | 62.1 | % | 15.3 | % | $ | 174.31 | $ | 128.86 | 35.3 | % | $ | 209.62 | $ | 158.29 | 32.4 | % | |||||||||||||||||||||||||||||
| Kimpton Hotel Palomar Phoenix | $ | 238.44 | $ | 237.48 | 0.4 | % | 75.1 | % | 65.6 | % | 9.5 | % | $ | 179.08 | $ | 155.74 | 15.0 | % | $ | 296.28 | $ | 255.10 | 16.1 | % | |||||||||||||||||||||||||||||
| Kimpton Shorebreak Fort Lauderdale Beach Resort | $ | 212.99 | $ | 204.54 | 4.1 | % | 71.8 | % | 72.9 | % | (1.1) | % | $ | 152.84 | $ | 149.04 | 2.5 | % | $ | 294.25 | $ | 291.21 | 1.0 | % | |||||||||||||||||||||||||||||
| Kimpton Shorebreak Huntington Beach Resort | $ | 323.06 | $ | 315.75 | 2.3 | % | 82.3 | % | 81.1 | % | 1.2 | % | $ | 265.98 | $ | 256.18 | 3.8 | % | $ | 379.93 | $ | 381.81 | (0.5) | % | |||||||||||||||||||||||||||||
L'Auberge de Sedona (1) | $ | 713.83 | $ | 729.02 | (2.1) | % | 67.9 | % | 43.1 | % | 24.8 | % | $ | 484.79 | $ | 314.42 | 54.2 | % | $ | 832.57 | $ | 603.02 | 38.1 | % | |||||||||||||||||||||||||||||
| Lake Austin Spa Resort | $ | 974.75 | $ | 1,055.97 | (7.7) | % | 53.9 | % | 52.1 | % | 1.8 | % | $ | 524.95 | $ | 550.61 | (4.7) | % | $ | 1,322.11 | $ | 1,354.93 | (2.4) | % | |||||||||||||||||||||||||||||
| Margaritaville Beach House Key West | $ | 386.10 | $ | 382.35 | 1.0 | % | 84.0 | % | 83.4 | % | 0.6 | % | $ | 324.50 | $ | 318.88 | 1.8 | % | $ | 438.57 | $ | 434.13 | 1.0 | % | |||||||||||||||||||||||||||||
| Salt Lake City Marriott Downtown at City Creek | $ | 211.38 | $ | 206.36 | 2.4 | % | 73.1 | % | 70.9 | % | 2.2 | % | $ | 154.57 | $ | 146.23 | 5.7 | % | $ | 213.64 | $ | 201.23 | 6.2 | % | |||||||||||||||||||||||||||||
| The Dagny Boston | $ | 332.37 | $ | 293.84 | 13.1 | % | 84.6 | % | 85.5 | % | (0.9) | % | $ | 281.06 | $ | 251.34 | 11.8 | % | $ | 306.78 | $ | 280.84 | 9.2 | % | |||||||||||||||||||||||||||||
| The Gwen | $ | 345.97 | $ | 316.48 | 9.3 | % | 74.5 | % | 75.0 | % | (0.5) | % | $ | 257.85 | $ | 237.38 | 8.6 | % | $ | 381.07 | $ | 358.03 | 6.4 | % | |||||||||||||||||||||||||||||
| The Hythe Vail | $ | 437.48 | $ | 439.91 | (0.6) | % | 58.9 | % | 61.6 | % | (2.7) | % | $ | 257.57 | $ | 271.08 | (5.0) | % | $ | 410.12 | $ | 423.74 | (3.2) | % | |||||||||||||||||||||||||||||
| The Landing Lake Tahoe Resort & Spa | $ | 456.65 | $ | 442.14 | 3.3 | % | 65.6 | % | 64.2 | % | 1.4 | % | $ | 299.37 | $ | 283.84 | 5.5 | % | $ | 529.50 | $ | 512.31 | 3.4 | % | |||||||||||||||||||||||||||||
| The Lindy Renaissance Charleston Hotel | $ | 347.40 | $ | 345.52 | 0.5 | % | 89.6 | % | 88.6 | % | 1.0 | % | $ | 311.10 | $ | 306.19 | 1.6 | % | $ | 403.33 | $ | 392.85 | 2.7 | % | |||||||||||||||||||||||||||||
| The Lodge at Sonoma Resort | $ | 428.69 | $ | 423.67 | 1.2 | % | 72.1 | % | 71.6 | % | 0.5 | % | $ | 309.01 | $ | 303.17 | 1.9 | % | $ | 485.37 | $ | 485.83 | (0.1) | % | |||||||||||||||||||||||||||||
| Tranquility Bay Beachfront Resort | $ | 580.82 | $ | 608.57 | (4.6) | % | 73.2 | % | 74.2 | % | (1.0) | % | $ | 425.08 | $ | 451.71 | (5.9) | % | $ | 544.19 | $ | 579.97 | (6.2) | % | |||||||||||||||||||||||||||||
| Westin Boston Seaport District | $ | 281.13 | $ | 272.97 | 3.0 | % | 85.3 | % | 84.7 | % | 0.6 | % | $ | 239.74 | $ | 231.30 | 3.6 | % | $ | 380.38 | $ | 358.71 | 6.0 | % | |||||||||||||||||||||||||||||
| Westin Fort Lauderdale Beach Resort | $ | 260.27 | $ | 257.61 | 1.0 | % | 74.5 | % | 75.8 | % | (1.3) | % | $ | 193.83 | $ | 195.37 | (0.8) | % | $ | 401.28 | $ | 421.64 | (4.8) | % | |||||||||||||||||||||||||||||
| Westin San Diego Bayview | $ | 233.86 | $ | 231.56 | 1.0 | % | 80.8 | % | 80.7 | % | 0.1 | % | $ | 189.05 | $ | 186.76 | 1.2 | % | $ | 256.51 | $ | 250.53 | 2.4 | % | |||||||||||||||||||||||||||||
| Worthington Renaissance Fort Worth Hotel | $ | 207.75 | $ | 202.77 | 2.5 | % | 68.6 | % | 72.3 | % | (3.7) | % | $ | 142.57 | $ | 146.68 | (2.8) | % | $ | 263.81 | $ | 271.01 | (2.7) | % | |||||||||||||||||||||||||||||
Comparable Total (2) | $ | 295.48 | $ | 284.81 | 3.7 | % | 74.1 | % | 72.9 | % | 1.2 | % | $ | 218.91 | $ | 207.69 | 5.4 | % | $ | 338.37 | $ | 322.37 | 5.0 | % | |||||||||||||||||||||||||||||
(1) During the fourth quarter 2025, Orchards Inn Sedona and L'Auberge de Sedona were combined and now operate as one hotel. Amounts presented have been adjusted to reflect the combination.
(2) Amounts exclude the Courtyard New York Manhattan/Fifth Avenue which was sold in 2026 and the Westin Washington D.C. City Center which was sold in 2025.
18
19
| Hotel Adjusted EBITDA Reconciliation - Third Quarter 2026 | |||||||||||||||||||||||||||||
| Net Income (Loss) | Plus: | Plus: | Plus: | Equals: Hotel Adjusted EBITDA | |||||||||||||||||||||||||
| Total Revenues | Depreciation | Interest Expense (1) | Adjustments (2) | ||||||||||||||||||||||||||
| AC Hotel Minneapolis Downtown | $ | 3,185 | $ | 856 | $ | 322 | $ | — | $ | — | $ | 1,178 | |||||||||||||||||
| Atlanta Marriott Alpharetta | $ | 4,203 | $ | 1,038 | $ | 413 | $ | — | $ | — | $ | 1,451 | |||||||||||||||||
| Bourbon Orleans Hotel | $ | 3,158 | $ | (213) | $ | 895 | $ | — | $ | 2 | $ | 684 | |||||||||||||||||
| Cavallo Point, The Lodge at the Golden Gate | $ | 15,347 | $ | 3,325 | $ | 1,526 | $ | — | $ | 94 | $ | 4,945 | |||||||||||||||||
| Chicago Marriott Downtown Magnificent Mile | $ | 39,578 | $ | 10,976 | $ | 3,075 | $ | 6 | $ | (397) | $ | 13,660 | |||||||||||||||||
| Chico Hot Springs Resort & Day Spa | $ | 5,035 | $ | 1,034 | $ | 488 | $ | — | $ | (1) | $ | 1,521 | |||||||||||||||||
| Courtyard Denver Downtown | $ | 3,659 | $ | 1,463 | $ | 403 | $ | — | $ | — | $ | 1,866 | |||||||||||||||||
| Courtyard New York Manhattan/Midtown East | $ | 10,974 | $ | 2,903 | $ | 838 | $ | — | $ | — | $ | 3,741 | |||||||||||||||||
| Embassy Suites by Hilton Bethesda | $ | 3,505 | $ | (1,505) | $ | 464 | $ | — | $ | 1,419 | $ | 378 | |||||||||||||||||
| Havana Cabana Key West | $ | 1,900 | $ | (404) | $ | 314 | $ | — | $ | — | $ | (90) | |||||||||||||||||
| Henderson Beach Resort | $ | 16,013 | $ | 4,312 | $ | 1,164 | $ | — | $ | — | $ | 5,476 | |||||||||||||||||
| Henderson Park Inn | $ | 3,307 | $ | 1,544 | $ | 246 | $ | — | $ | — | $ | 1,790 | |||||||||||||||||
| Hilton Garden Inn New York/Times Square Central | $ | 7,668 | $ | 1,233 | $ | 777 | $ | — | $ | — | $ | 2,010 | |||||||||||||||||
| Hotel Champlain Burlington | $ | 7,034 | $ | 1,878 | $ | 816 | $ | — | $ | — | $ | 2,694 | |||||||||||||||||
| Hotel Clio | $ | 8,379 | $ | 1,898 | $ | 717 | $ | — | $ | — | $ | 2,615 | |||||||||||||||||
| Hotel Emblem San Francisco | $ | 1,648 | $ | (7) | $ | 193 | $ | — | $ | — | $ | 186 | |||||||||||||||||
| Kimpton Hotel Palomar Phoenix | $ | 4,686 | $ | (706) | $ | 749 | $ | — | $ | 186 | $ | 229 | |||||||||||||||||
| Kimpton Shorebreak Fort Lauderdale Beach Resort | $ | 1,427 | $ | (666) | $ | 372 | $ | — | $ | — | $ | (294) | |||||||||||||||||
| Kimpton Shorebreak Huntington Beach Resort | $ | 6,309 | $ | 2,101 | $ | 352 | $ | — | $ | — | $ | 2,453 | |||||||||||||||||
L'Auberge de Sedona (3) | $ | 9,503 | $ | 1,211 | $ | 1,150 | $ | 56 | $ | 38 | $ | 2,455 | |||||||||||||||||
| Lake Austin Spa Resort | $ | 4,131 | $ | 228 | $ | 736 | $ | — | $ | — | $ | 964 | |||||||||||||||||
| Margaritaville Beach House Key West | $ | 4,762 | $ | 218 | $ | 775 | $ | — | $ | — | $ | 993 | |||||||||||||||||
| Salt Lake City Marriott Downtown at City Creek | $ | 9,537 | $ | 2,349 | $ | 1,060 | $ | — | $ | 11 | $ | 3,420 | |||||||||||||||||
| The Dagny Boston | $ | 13,908 | $ | 5,474 | $ | 1,607 | $ | — | $ | — | $ | 7,081 | |||||||||||||||||
| The Gwen | $ | 13,326 | $ | 3,324 | $ | 759 | $ | — | $ | — | $ | 4,083 | |||||||||||||||||
| The Hythe Vail | $ | 12,642 | $ | 3,628 | $ | 779 | $ | — | $ | — | $ | 4,407 | |||||||||||||||||
| The Landing Lake Tahoe Resort & Spa | $ | 6,409 | $ | 2,854 | $ | 358 | $ | — | $ | — | $ | 3,212 | |||||||||||||||||
| The Lindy Renaissance Charleston Hotel | $ | 5,366 | $ | 1,768 | $ | 369 | $ | — | $ | — | $ | 2,137 | |||||||||||||||||
| The Lodge at Sonoma Resort | $ | 9,199 | $ | 2,526 | $ | 502 | $ | — | $ | — | $ | 3,028 | |||||||||||||||||
| Tranquility Bay Beachfront Resort | $ | 3,585 | $ | 137 | $ | 480 | $ | — | $ | — | $ | 617 | |||||||||||||||||
| Westin Boston Seaport District | $ | 28,542 | $ | 5,257 | $ | 2,312 | $ | — | $ | (247) | $ | 7,322 | |||||||||||||||||
| Westin Fort Lauderdale Beach Resort | $ | 9,835 | $ | (659) | $ | 1,005 | $ | — | $ | — | $ | 346 | |||||||||||||||||
| Westin San Diego Bayview | $ | 9,415 | $ | 872 | $ | 1,358 | $ | — | $ | — | $ | 2,230 | |||||||||||||||||
| Worthington Renaissance Fort Worth Hotel | $ | 10,430 | $ | 1,920 | $ | 991 | $ | — | $ | — | $ | 2,911 | |||||||||||||||||
| Comparable Total | $ | 297,605 | $ | 62,167 | $ | 28,365 | $ | 62 | $ | 1,105 | $ | 91,687 | |||||||||||||||||
(1) Includes cash ground rent expense for L'Auberge de Sedona that is classified as interest expense as it is a financing lease for GAAP purposes.
(2) Includes non-cash expenses incurred by the hotels due to the straight-lining of the rent from ground lease obligations and the non-cash amortization of intangible assets and liabilities.
(3) During the fourth quarter 2025, Orchards Inn Sedona and L'Auberge de Sedona were combined and now operate as one hotel. Amounts presented have been adjusted to reflect the combination.
20
21
| Hotel Adjusted EBITDA Reconciliation - Third Quarter 2025 | |||||||||||||||||||||||||||||
| Net Income (Loss) | Plus: | Plus: | Plus: | Equals: Hotel | |||||||||||||||||||||||||
| Total Revenues | Depreciation | Interest Expense (1) | Adjustments (2) | Adjusted EBITDA | |||||||||||||||||||||||||
| AC Hotel Minneapolis Downtown | $ | 3,271 | $ | 913 | $ | 298 | $ | — | $ | — | $ | 1,211 | |||||||||||||||||
| Atlanta Marriott Alpharetta | $ | 4,479 | $ | 1,253 | $ | 393 | $ | — | $ | — | $ | 1,646 | |||||||||||||||||
| Bourbon Orleans Hotel | $ | 3,013 | $ | (575) | $ | 1,136 | $ | — | $ | 3 | $ | 564 | |||||||||||||||||
| Cavallo Point, The Lodge at the Golden Gate | $ | 12,700 | $ | 2,201 | $ | 1,484 | $ | — | $ | 94 | $ | 3,779 | |||||||||||||||||
| Chicago Marriott Downtown Magnificent Mile | $ | 36,457 | $ | 8,815 | $ | 3,042 | $ | 6 | $ | (397) | $ | 11,466 | |||||||||||||||||
| Chico Hot Springs Resort & Day Spa | $ | 4,936 | $ | 1,153 | $ | 443 | $ | — | $ | (1) | $ | 1,595 | |||||||||||||||||
| Courtyard Denver Downtown | $ | 3,642 | $ | 1,349 | $ | 398 | $ | — | $ | — | $ | 1,747 | |||||||||||||||||
| Courtyard New York Manhattan/Fifth Avenue | $ | 5,671 | $ | 794 | $ | 343 | $ | 282 | $ | 214 | $ | 1,633 | |||||||||||||||||
| Courtyard New York Manhattan/Midtown East | $ | 9,631 | $ | 2,431 | $ | 541 | $ | — | $ | — | $ | 2,972 | |||||||||||||||||
| Embassy Suites by Hilton Bethesda | $ | 3,308 | $ | (1,582) | $ | 480 | $ | — | $ | 1,435 | $ | 333 | |||||||||||||||||
| Havana Cabana Key West | $ | 1,261 | $ | (665) | $ | 230 | $ | — | $ | — | $ | (435) | |||||||||||||||||
| Henderson Beach Resort | $ | 13,224 | $ | 3,056 | $ | 1,112 | $ | — | $ | — | $ | 4,168 | |||||||||||||||||
| Henderson Park Inn | $ | 2,880 | $ | 1,200 | $ | 275 | $ | — | $ | — | $ | 1,475 | |||||||||||||||||
| Hilton Garden Inn New York/Times Square Central | $ | 7,911 | $ | 1,514 | $ | 780 | $ | — | $ | — | $ | 2,294 | |||||||||||||||||
| Hotel Champlain Burlington | $ | 7,920 | $ | 2,063 | $ | 795 | $ | — | $ | — | $ | 2,858 | |||||||||||||||||
| Hotel Clio | $ | 8,478 | $ | 1,792 | $ | 847 | $ | 42 | $ | 5 | $ | 2,686 | |||||||||||||||||
| Hotel Emblem San Francisco | $ | 1,212 | $ | (364) | $ | 292 | $ | — | $ | — | $ | (72) | |||||||||||||||||
| Kimpton Hotel Palomar Phoenix | $ | 3,820 | $ | (962) | $ | 573 | $ | — | $ | 190 | $ | (199) | |||||||||||||||||
| Kimpton Shorebreak Fort Lauderdale Beach Resort | $ | 1,440 | $ | (766) | $ | 371 | $ | — | $ | — | $ | (395) | |||||||||||||||||
| Kimpton Shorebreak Huntington Beach Resort | $ | 6,137 | $ | 2,151 | $ | 343 | $ | — | $ | — | $ | 2,494 | |||||||||||||||||
L'Auberge de Sedona (3) | $ | 6,975 | $ | (494) | $ | 1,043 | $ | — | $ | 42 | $ | 591 | |||||||||||||||||
| Lake Austin Spa Resort | $ | 4,226 | $ | 419 | $ | 719 | $ | — | $ | — | $ | 1,138 | |||||||||||||||||
| Margaritaville Beach House Key West | $ | 4,920 | $ | 386 | $ | 766 | $ | — | $ | — | $ | 1,152 | |||||||||||||||||
| Salt Lake City Marriott Downtown at City Creek | $ | 9,284 | $ | 2,192 | $ | 1,050 | $ | — | $ | 11 | $ | 3,253 | |||||||||||||||||
| The Dagny Boston | $ | 12,560 | $ | 4,480 | $ | 1,580 | $ | — | $ | — | $ | 6,060 | |||||||||||||||||
| The Gwen | $ | 12,176 | $ | 2,824 | $ | 761 | $ | — | $ | — | $ | 3,585 | |||||||||||||||||
| The Hythe Vail | $ | 11,587 | $ | 2,806 | $ | 919 | $ | — | $ | — | $ | 3,725 | |||||||||||||||||
| The Landing Lake Tahoe Resort & Spa | $ | 6,029 | $ | 2,635 | $ | 321 | $ | — | $ | — | $ | 2,956 | |||||||||||||||||
| The Lindy Renaissance Charleston Hotel | $ | 5,491 | $ | 1,861 | $ | 369 | $ | — | $ | — | $ | 2,230 | |||||||||||||||||
| The Lodge at Sonoma Resort | $ | 9,461 | $ | 2,954 | $ | 481 | $ | — | $ | — | $ | 3,435 | |||||||||||||||||
| Tranquility Bay Beachfront Resort | $ | 3,651 | $ | 301 | $ | 472 | $ | — | $ | — | $ | 773 | |||||||||||||||||
| Westin Boston Seaport District | $ | 26,832 | $ | 3,893 | $ | 2,315 | $ | 1,422 | $ | (124) | $ | 7,506 | |||||||||||||||||
| Westin Fort Lauderdale Beach Resort | $ | 11,009 | $ | (769) | $ | 1,062 | $ | — | $ | — | $ | 293 | |||||||||||||||||
| Westin San Diego Bayview | $ | 9,378 | $ | 1,078 | $ | 1,352 | $ | — | $ | — | $ | 2,430 | |||||||||||||||||
| Worthington Renaissance Fort Worth Hotel | $ | 10,414 | $ | 1,279 | $ | 954 | $ | — | $ | — | $ | 2,233 | |||||||||||||||||
| Total | $ | 285,384 | $ | 51,616 | $ | 28,340 | $ | 1,752 | $ | 1,472 | $ | 83,168 | |||||||||||||||||
Less: Sold Hotel (4) | $ | (5,671) | $ | (794) | $ | (343) | $ | (282) | $ | (214) | $ | (1,633) | |||||||||||||||||
| Comparable Total | $ | 279,713 | $ | 50,822 | $ | 27,997 | $ | 1,470 | $ | 1,258 | $ | 81,535 | |||||||||||||||||
(1) Includes cash ground rent expense for Courtyard New York Manhattan/Fifth Avenue that is classified as interest expense as it is a financing lease for GAAP purposes.
(2) Includes non-cash expenses incurred by the hotels due to the straight-lining of the rent from ground lease obligations and the non-cash amortization of intangible assets and liabilities.
(3) During the fourth quarter 2025, Orchards Inn Sedona and L'Auberge de Sedona were combined and now operate as one hotel. Amounts presented have been adjusted to reflect the combination.
(4) Represents the operating results of the Courtyard New York Manhattan/Fifth Avenue sold in 2026.
| Hotel Adjusted EBITDA Reconciliation - Year to Date 2026 | |||||||||||||||||||||||||||||
| Total Revenues | Net Income (Loss) | Plus: Depreciation | Plus: Interest Expense (1) | Plus: Adjustments (2) | Equals: Hotel Adjusted EBITDA | ||||||||||||||||||||||||
| AC Hotel Minneapolis Downtown | $ | 7,621 | $ | 1,095 | $ | 947 | $ | — | $ | — | $ | 2,042 | |||||||||||||||||
| Atlanta Marriott Alpharetta | $ | 13,591 | $ | 4,004 | $ | 1,214 | $ | — | $ | — | $ | 5,218 | |||||||||||||||||
| Bourbon Orleans Hotel | $ | 13,207 | $ | 1,694 | $ | 3,272 | $ | — | $ | 8 | $ | 4,974 | |||||||||||||||||
| Cavallo Point, The Lodge at the Golden Gate | $ | 43,320 | $ | 8,725 | $ | 4,625 | $ | — | $ | 281 | $ | 13,631 | |||||||||||||||||
| Chicago Marriott Downtown Magnificent Mile | $ | 97,704 | $ | 24,793 | $ | 9,266 | $ | 19 | $ | (1,192) | $ | 32,886 | |||||||||||||||||
| Chico Hot Springs Resort & Day Spa | $ | 11,022 | $ | 264 | $ | 1,436 | $ | — | $ | — | $ | 1,700 | |||||||||||||||||
| Courtyard Denver Downtown | $ | 9,791 | $ | 3,402 | $ | 1,202 | $ | — | $ | — | $ | 4,604 | |||||||||||||||||
| Courtyard New York Manhattan/Fifth Avenue | $ | 5,533 | $ | 13 | $ | 115 | $ | 377 | $ | 280 | $ | 785 | |||||||||||||||||
| Courtyard New York Manhattan/Midtown East | $ | 26,141 | $ | 4,560 | $ | 2,218 | $ | — | $ | — | $ | 6,778 | |||||||||||||||||
| Embassy Suites by Hilton Bethesda | $ | 10,469 | $ | (4,300) | $ | 1,387 | $ | — | $ | 4,277 | $ | 1,364 | |||||||||||||||||
| Havana Cabana Key West | $ | 7,986 | $ | 809 | $ | 888 | $ | — | $ | — | $ | 1,697 | |||||||||||||||||
| Henderson Beach Resort | $ | 38,917 | $ | 8,467 | $ | 3,460 | $ | — | $ | — | $ | 11,927 | |||||||||||||||||
| Henderson Park Inn | $ | 7,971 | $ | 3,104 | $ | 850 | $ | — | $ | — | $ | 3,954 | |||||||||||||||||
| Hilton Garden Inn New York/Times Square Central | $ | 20,268 | $ | 2,358 | $ | 2,353 | $ | — | $ | — | $ | 4,711 | |||||||||||||||||
| Hotel Champlain Burlington | $ | 15,074 | $ | 1,083 | $ | 2,439 | $ | — | $ | — | $ | 3,522 | |||||||||||||||||
| Hotel Clio | $ | 23,224 | $ | 4,312 | $ | 2,214 | $ | — | $ | — | $ | 6,526 | |||||||||||||||||
| Hotel Emblem San Francisco | $ | 5,494 | $ | 653 | $ | 580 | $ | — | $ | — | $ | 1,233 | |||||||||||||||||
| Kimpton Hotel Palomar Phoenix | $ | 19,574 | $ | 2,060 | $ | 2,173 | $ | — | $ | 561 | $ | 4,794 | |||||||||||||||||
| Kimpton Shorebreak Fort Lauderdale Beach Resort | $ | 7,712 | $ | 249 | $ | 1,114 | $ | — | $ | — | $ | 1,363 | |||||||||||||||||
| Kimpton Shorebreak Huntington Beach Resort | $ | 16,284 | $ | 4,130 | $ | 1,054 | $ | — | $ | — | $ | 5,184 | |||||||||||||||||
L'Auberge de Sedona (3) | $ | 35,912 | $ | 9,330 | $ | 3,500 | $ | 56 | $ | 123 | $ | 13,009 | |||||||||||||||||
| Lake Austin Spa Resort | $ | 14,437 | $ | 1,718 | $ | 2,194 | $ | — | $ | — | $ | 3,912 | |||||||||||||||||
| Margaritaville Beach House Key West | $ | 22,270 | $ | 7,333 | $ | 2,316 | $ | — | $ | — | $ | 9,649 | |||||||||||||||||
| Salt Lake City Marriott Downtown at City Creek | $ | 29,745 | $ | 8,144 | $ | 3,221 | $ | — | $ | 32 | $ | 11,397 | |||||||||||||||||
| The Dagny Boston | $ | 33,752 | $ | 9,384 | $ | 4,800 | $ | — | $ | — | $ | 14,184 | |||||||||||||||||
| The Gwen | $ | 32,354 | $ | 6,112 | $ | 2,288 | $ | — | $ | — | $ | 8,400 | |||||||||||||||||
| The Hythe Vail | $ | 38,515 | $ | 12,507 | $ | 2,330 | $ | — | $ | — | $ | 14,837 | |||||||||||||||||
| The Landing Lake Tahoe Resort & Spa | $ | 11,853 | $ | 3,190 | $ | 1,080 | $ | — | $ | — | $ | 4,270 | |||||||||||||||||
| The Lindy Renaissance Charleston Hotel | $ | 18,388 | $ | 7,328 | $ | 1,108 | $ | — | $ | — | $ | 8,436 | |||||||||||||||||
| The Lodge at Sonoma Resort | $ | 24,116 | $ | 5,741 | $ | 1,507 | $ | — | $ | — | $ | 7,248 | |||||||||||||||||
| Tranquility Bay Beachfront Resort | $ | 15,302 | $ | 2,870 | $ | 1,445 | $ | — | $ | — | $ | 4,315 | |||||||||||||||||
| Westin Boston Seaport District | $ | 82,351 | $ | 13,570 | $ | 6,882 | $ | — | $ | (742) | $ | 19,710 | |||||||||||||||||
| Westin Fort Lauderdale Beach Resort | $ | 47,326 | $ | 10,268 | $ | 2,981 | $ | — | $ | — | $ | 13,249 | |||||||||||||||||
| Westin San Diego Bayview | $ | 30,531 | $ | 4,942 | $ | 4,077 | $ | — | $ | — | $ | 9,019 | |||||||||||||||||
| Worthington Renaissance Fort Worth Hotel | $ | 36,298 | $ | 8,163 | $ | 2,908 | $ | — | $ | — | $ | 11,071 | |||||||||||||||||
| Total | $ | 874,053 | $ | 182,075 | $ | 85,444 | $ | 452 | $ | 3,628 | $ | 271,566 | |||||||||||||||||
Less: Sold Hotel (4) | $ | (5,533) | $ | (13) | $ | (115) | $ | (377) | $ | (280) | $ | (785) | |||||||||||||||||
| Comparable Total | $ | 868,520 | $ | 182,062 | $ | 85,329 | $ | 75 | $ | 3,348 | $ | 270,781 | |||||||||||||||||
(1) Includes cash ground rent expense for Courtyard New York Manhattan/Fifth Avenue and L'Auberge de Sedona that is classified as interest expense as it is a financing lease for GAAP purposes.
(2) Includes non-cash expenses incurred by the hotels due to the straight-lining of the rent from ground lease obligations and the non-cash amortization of intangible assets and liabilities.
(3) During the fourth quarter 2025, Orchards Inn Sedona and L'Auberge de Sedona were combined and now operate as one hotel. Amounts presented have been adjusted to reflect the combination.
(4) Represents the operating results of the Courtyard New York Manhattan/Fifth Avenue sold in 2026.
| Hotel Adjusted EBITDA Reconciliation - Year to Date 2025 | |||||||||||||||||||||||||||||
| Net Income (Loss) | Plus: Depreciation | Plus: Interest Expense (1) | Plus: Adjustments (2) | Equals: Hotel Adjusted EBITDA | |||||||||||||||||||||||||
| Total Revenues | |||||||||||||||||||||||||||||
| AC Hotel Minneapolis Downtown | $ | 7,423 | $ | 1,105 | $ | 893 | $ | — | $ | — | $ | 1,998 | |||||||||||||||||
| Atlanta Marriott Alpharetta | $ | 13,609 | $ | 4,128 | $ | 1,134 | $ | — | $ | — | $ | 5,262 | |||||||||||||||||
| Bourbon Orleans Hotel | $ | 12,506 | $ | 1,301 | $ | 3,302 | $ | — | $ | 9 | $ | 4,612 | |||||||||||||||||
| Cavallo Point, The Lodge at the Golden Gate | $ | 34,898 | $ | 4,200 | $ | 4,422 | $ | — | $ | 281 | $ | 8,903 | |||||||||||||||||
| Chicago Marriott Downtown Magnificent Mile | $ | 91,482 | $ | 14,217 | $ | 9,200 | $ | 18 | $ | (1,192) | $ | 22,243 | |||||||||||||||||
| Chico Hot Springs Resort & Day Spa | $ | 11,917 | $ | 1,252 | $ | 1,315 | $ | — | $ | (1) | $ | 2,566 | |||||||||||||||||
| Courtyard Denver Downtown | $ | 9,263 | $ | 2,634 | $ | 1,167 | $ | — | $ | — | $ | 3,801 | |||||||||||||||||
| Courtyard New York Manhattan/Fifth Avenue | $ | 15,074 | $ | 1,102 | $ | 1,028 | $ | 849 | $ | 620 | $ | 3,599 | |||||||||||||||||
| Courtyard New York Manhattan/Midtown East | $ | 26,031 | $ | 5,487 | $ | 1,607 | $ | — | $ | — | $ | 7,094 | |||||||||||||||||
| Embassy Suites by Hilton Bethesda | $ | 10,013 | $ | (4,538) | $ | 1,509 | $ | — | $ | 4,322 | $ | 1,293 | |||||||||||||||||
| Havana Cabana Key West | $ | 8,192 | $ | 1,221 | $ | 779 | $ | — | $ | — | $ | 2,000 | |||||||||||||||||
| Henderson Beach Resort | $ | 34,710 | $ | 6,153 | $ | 3,334 | $ | — | $ | — | $ | 9,487 | |||||||||||||||||
| Henderson Park Inn | $ | 7,225 | $ | 2,593 | $ | 826 | $ | — | $ | — | $ | 3,419 | |||||||||||||||||
| Hilton Garden Inn New York/Times Square Central | $ | 20,229 | $ | 2,400 | $ | 2,215 | $ | — | $ | — | $ | 4,615 | |||||||||||||||||
| Hotel Champlain Burlington | $ | 16,235 | $ | 1,144 | $ | 2,357 | $ | — | $ | — | $ | 3,501 | |||||||||||||||||
| Hotel Clio | $ | 22,799 | $ | 2,036 | $ | 2,549 | $ | 1,242 | $ | 14 | $ | 5,841 | |||||||||||||||||
| Hotel Emblem San Francisco | $ | 4,148 | $ | (609) | $ | 878 | $ | — | $ | — | $ | 269 | |||||||||||||||||
| Kimpton Hotel Palomar Phoenix | $ | 16,853 | $ | 1,448 | $ | 1,590 | $ | — | $ | 573 | $ | 3,611 | |||||||||||||||||
| Kimpton Shorebreak Fort Lauderdale Beach Resort | $ | 7,632 | $ | (142) | $ | 1,111 | $ | — | $ | — | $ | 969 | |||||||||||||||||
| Kimpton Shorebreak Huntington Beach Resort | $ | 16,365 | $ | 4,616 | $ | 1,023 | $ | — | $ | — | $ | 5,639 | |||||||||||||||||
L'Auberge de Sedona (3) | $ | 26,011 | $ | 3,400 | $ | 2,315 | $ | — | $ | 126 | $ | 5,841 | |||||||||||||||||
| Lake Austin Spa Resort | $ | 14,796 | $ | 2,049 | $ | 2,154 | $ | — | $ | — | $ | 4,203 | |||||||||||||||||
| Margaritaville Beach House Key West | $ | 22,044 | $ | 6,815 | $ | 2,286 | $ | — | $ | — | $ | 9,101 | |||||||||||||||||
| Salt Lake City Marriott Downtown at City Creek | $ | 28,018 | $ | 7,456 | $ | 3,160 | $ | — | $ | 32 | $ | 10,648 | |||||||||||||||||
| The Dagny Boston | $ | 30,898 | $ | 6,871 | $ | 4,706 | $ | — | $ | — | $ | 11,577 | |||||||||||||||||
| The Gwen | $ | 30,398 | $ | 4,257 | $ | 2,272 | $ | — | $ | — | $ | 6,529 | |||||||||||||||||
| The Hythe Vail | $ | 39,795 | $ | 12,051 | $ | 3,229 | $ | — | $ | — | $ | 15,280 | |||||||||||||||||
| The Landing Lake Tahoe Resort & Spa | $ | 11,469 | $ | 3,081 | $ | 954 | $ | — | $ | — | $ | 4,035 | |||||||||||||||||
| The Lindy Renaissance Charleston Hotel | $ | 17,911 | $ | 6,952 | $ | 1,101 | $ | — | $ | — | $ | 8,053 | |||||||||||||||||
| The Lodge at Sonoma Resort | $ | 24,139 | $ | 6,171 | $ | 1,452 | $ | — | $ | — | $ | 7,623 | |||||||||||||||||
| Tranquility Bay Beachfront Resort | $ | 16,308 | $ | 3,754 | $ | 1,405 | $ | — | $ | — | $ | 5,159 | |||||||||||||||||
| Westin Boston Seaport District | $ | 77,653 | $ | 7,875 | $ | 6,917 | $ | 5,188 | $ | (367) | $ | 19,613 | |||||||||||||||||
| Westin Fort Lauderdale Beach Resort | $ | 49,727 | $ | 8,732 | $ | 3,290 | $ | — | $ | — | $ | 12,022 | |||||||||||||||||
| Westin San Diego Bayview | $ | 29,820 | $ | 4,513 | $ | 4,050 | $ | — | $ | — | $ | 8,563 | |||||||||||||||||
| Westin Washington D.C. City Center | $ | 3,077 | $ | 330 | $ | — | $ | — | $ | — | $ | 330 | |||||||||||||||||
| Worthington Renaissance Fort Worth Hotel | $ | 37,289 | $ | 7,141 | $ | 2,858 | $ | 940 | $ | — | $ | 10,939 | |||||||||||||||||
| Total | $ | 845,957 | $ | 143,196 | $ | 84,388 | $ | 8,237 | $ | 4,417 | $ | 240,192 | |||||||||||||||||
Less: Sold Hotels (4) | $ | (18,151) | $ | (1,432) | $ | (1,028) | $ | (849) | $ | (620) | $ | (3,929) | |||||||||||||||||
| Comparable Total | $ | 827,806 | $ | 141,764 | $ | 83,360 | $ | 7,388 | $ | 3,797 | $ | 236,263 | |||||||||||||||||
(1) Includes cash ground rent expense for Courtyard New York Manhattan/Fifth Avenue that is classified as interest expense as it is a financing lease for GAAP purposes.
(2) Includes non-cash expenses incurred by the hotels due to the straight-lining of the rent from ground lease obligations and the non-cash amortization of intangible assets and liabilities.
(3) During the fourth quarter 2025, Orchards Inn Sedona and L'Auberge de Sedona were combined and now operate as one hotel. Amounts presented have been adjusted to reflect the combination.
(4) Represents the operating results of the Courtyard New York Manhattan/Fifth Avenue sold in 2026 and the Westin Washington D.C. City Center sold in 2025.