8-K - SHO - Equibles

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): November 7, 2023

Sunstone Hotel Investors, Inc.

(Exact Name of Registrant as Specified in Its Charter)



Maryland	001-32319	20-1296886
(State or Other Jurisdiction of<br>Incorporation or Organization)	(Commission File Number)	(I.R.S. Employer<br>Identification Number)


15 Enterprise, Suite 200 ** Aliso Viejo , California**		92656
(Address of Principal Executive Offices)		(Zip Code)

( 949 ) 330-4000

(Registrant’s telephone number including area code)

N/A

(Former Name or Former Address, if Changed Since Last Report)

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:


☐	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
Common Stock, $0.01 par value	SHO	New York Stock Exchange
Series H Cumulative Redeemable Preferred Stock, $0.01 par value	SHO.PRH	New York Stock Exchange
Series I Cumulative Redeemable Preferred Stock, $0.01 par value	SHO.PRI	New York Stock Exchange

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).


	Emerging growth company	☐

If an emerging growth company, indicate by checkmark 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. ◻

Item 2.02.Results of Operations and Financial Condition.

On November 7, 2023, Sunstone Hotel Investors, Inc. (the “Company”) issued a press release regarding its financial results for the third quarter ended September 30, 2023. The press release referred to supplemental financial information that is available on the Company’s website, free of charge, at www.sunstonehotels.com. A copy of the press release and the supplemental financial information are attached hereto as Exhibits 99.1 and 99.2, respectively, and are incorporated herein by this reference.

The information furnished pursuant to this Item 2.02, including Exhibit 99.1 and Exhibit 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section, and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.

Item 9.01.Financial Statements and Exhibits.

(d) The following exhibits are furnished herewith:

EXHIBIT INDEX


Exhibit No.	****	Description
99.1		Press Release, dated November 7, 2023.
99.2		Supplemental Financial Information for the third quarter ended September 30, 2023.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

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 thereunto duly authorized.


	Sunstone Hotel Investors, Inc.

Date: November 7, 2023	By:	/s/ Aaron R. Reyes
		Aaron R. Reyes (Principal Financial Officer and Duly Authorized Officer)

Exhibit 99.1

For Additional Information:

Aaron Reyes

Sunstone Hotel Investors, Inc.

(949) 382-3018

SUNSTONE HOTEL INVESTORS REPORTS RESULTS FOR THIRD QUARTER 2023

ALISO VIEJO, CA – November 7, 2023 – Sunstone Hotel Investors, Inc. (the “Company” or “Sunstone”) (NYSE: SHO) today announced results for the third quarter ended September 30, 2023.

Third Quarter 2023 Operational Results (as compared to Third Quarter 2022):

●	Net Income: Net income was $15.6 million as compared to $20.5 million.
●	Comparable RevPAR: Comparable RevPAR was $222.54 and was generally unchanged as compared to the prior year. The average daily rate was $305.69 and occupancy was 72.8%. RevPAR at the Company’s urban and convention hotels increased 7.4%.
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●	Adjusted EBITDAre: Adjusted EBITDAre, excluding noncontrolling interest decreased 0.2% to $63.7 million.
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●	Adjusted FFO: Adjusted FFO attributable to common stockholders per diluted share decreased 4.2% to $0.23.
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Information regarding the non-GAAP financial measures disclosed in this release is provided below in “Non-GAAP Financial Measures.” Reconciliations of non-GAAP financial measures to the most comparable GAAP measure for each of the periods presented are included later in this release.

Bryan A. Giglia, Chief Executive Officer, stated, “Overall, we are pleased with our results in the third quarter as we delivered earnings above the high-end of our guidance range despite having to navigate disruption from the tragic fires on Maui. We remain grateful for the dedication of the hotel associates at Wailea Beach Resort who have worked tirelessly to care for guests and members of the community in the weeks since the fires. While leisure demand continued to moderate during the quarter, our portfolio of well-located urban and convention assets turned in a strong performance. Our operators diligently managed costs, which contributed to better than expected profitability even as leisure travel patterns normalized.”

Mr. Giglia continued, “Shortly after the end of the quarter, we closed on the sale of Boston Park Plaza for an attractive all-cash price of $370 million. Boston Park Plaza has been a successful allocation of capital for Sunstone as we executed on our business plan, meaningfully grew the hotel’s earnings and are now exiting the investment to redeploy the proceeds into higher growth opportunities.”

Unaudited Selected Statistical and Financial Data ($ in millions, except RevPAR, ADR and per share amounts)


	Three Months Ended September 30,								Nine Months Ended September 30,
	2023		****	2022		****	Change		2023			2022			Change

Net Income	$	15.6		$	20.5		(24.1)	%	$	79.7		$	73.3		8.8	%
Income Attributable to Common Stockholders per Diluted Share	$	0.06		$	0.08		(25.0)	%	$	0.33		$	0.27		22.2	%

Comparable RevPAR (1)	$	222.54		$	222.50		0.0	%	$	229.17		$	208.84		9.7	%

Comparable Occupancy (1)		72.8	%		71.4	%	140	bps		73.2	%		66.7	%	650	bps
Comparable ADR (1)	$	305.69		$	311.62		(1.9)	%	$	313.08		$	313.10		0.0	%

Comparable Adjusted EBITDAre Margin (1)		27.0	%		28.4	%	(140)	bps		28.9	%		29.0	%	(10)	bps

Adjusted EBITDAre, excluding noncontrolling interest	$	63.7		$	63.8		(0.2)	%	$	208.8		$	165.0		26.5	%
Adjusted FFO Attributable to Common Stockholders	$	46.4		$	51.3		(9.6)	%	$	157.6		$	130.9		20.4	%
Adjusted FFO Attributable to Common Stockholders per Diluted Share	$	0.23		$	0.24		(4.2)	%	$	0.76		$	0.61		24.6	%
(1)	Comparable operating statistics presented in this release include all 15 hotels owned by the Company at September 30, 2023, and include both prior ownership results and the Company’s ownership results for The Confidante Miami Beach, acquired by the Company in June 2022.
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The Company’s actual results for the quarter ended September 30, 2023 compare to its guidance previously provided as follows:


Metric ( in millions, except per share data)	Quarter Ended<br><br>September 30, 2023<br><br>Guidance (1)	Quarter Ended<br><br>September 30, 2023<br><br>Actual Results (unaudited)	Performance Relative to Prior Guidance Midpoint
Net Income	$8 to $13	$16	$5
Total Portfolio RevPAR Growth (as compared to the third quarter of 2022)	- 1.0% to + 2.0%	0.0%	- 50 bps
Adjusted EBITDAre	$57 to $62	$64	$4
Adjusted FFO Attributable to Common Stockholders	$38 to $44	$46	$5
Adjusted FFO Attributable to Common Stockholders per Diluted Share	$0.18 to $0.21	$0.23	$0.03
Diluted Weighted Average Shares Outstanding	207,500,000	206,000,000	- 1,500,000

All values are in US Dollars.

(1)	Represents guidance presented on August 4, 2023.

Recent Developments

Boston Park Plaza Disposition: On October 26, 2023, the Company sold the 1,060-room Boston Park Plaza for a contractual gross sale price of $370.0 million, or approximately $350,000 per key. The Company acquired the hotel in 2013 and successfully executed a business plan to reinvigorate the well-located historic hotel, which resulted in substantial earnings growth over the Company’s ownership period. Based on the timing of the prior renovation, the Company anticipates that the hotel will require significant additional investment to maintain its competitive position and sustain its current level of earnings. The hotel generates the majority of its fourth quarter earnings in the month of October and the Company anticipates that it will record approximately $4.0 million of Hotel Adjusted EBITDAre for its ownership period in the fourth quarter. Based on the seasonal nature of the market, the hotel generally does not have earnings during the winter months from December to February. The Company is evaluating opportunities to reinvest the sale proceeds into assets that will generate higher growth, superior returns and greater per-share net asset value. Depending on reinvestment opportunities, the Company may redeploy a portion of the proceeds from the sale to repurchase its common stock.

The Westin Washington, DC Downtown: In October 2023, the Company converted its Renaissance Washington DC to The Westin Washington, DC Downtown, following a transformative renovation. The new flagship Westin hotel boasts 807 fully renovated guestrooms and suites, 70,000 square feet of new or renovated meeting space, a sophisticated new lobby with reimagined culinary offerings and the largest hotel fitness studio in the city. The repositioned hotel is expected to attract additional occupancy and garner higher rates which will increase the earnings potential and value of the hotel. 2

Stock Repurchase Program. During the third quarter of 2023, the Company repurchased 1,561,375 shares of its common stock at an average purchase price of $8.97 per share. Year to date through November 3, 2023, the Company has repurchased a total of 4,061,451 shares of its common stock at an average price of $9.26 per share for a total repurchase amount before expenses of $37.6 million, leaving $473.4 million of authorized capacity remaining under the Company’s stock repurchase program.

Balance Sheet and Liquidity Update

As of September 30, 2023, the Company had $185.0 million of cash and cash equivalents, including restricted cash of $71.2 million, total assets of $3.1 billion, including $2.6 billion of net investments in hotel properties, total debt of $819.6 million and stockholders’ equity of $2.1 billion.

Operations Update

October 2023, 2022 and 2019 results included the following ($ in millions, except RevPAR and ADR):


	October
12 Comparable Hotels (1)	2023 (2)			2022			2019			Change 2023 vs. 2022		Change 2023 vs. 2019
Room Revenue	$	46.1		$	45.7		$	47.0		0.9	%	(1.9)	%

RevPAR	$	230.19		$	227.93		$	234.71		1.0	%	(1.9)	%
Occupancy		73.5	%		73.2	%		86.4	%	30	bps	(1,290)	bps
Average Daily Rate	$	313.19		$	311.38		$	271.65		0.6	%	15.3	%


	October
14 Comparable Hotels (3)	2023 (2)			2022			2019		Change 2023 vs. 2022		Change 2023 vs. 2019
Room Revenue	$	51.8		$	51.6			N/A	0.4	%	N/A

RevPAR	$	250.17		$	249.05			N/A	0.4	%	N/A
Occupancy		73.0	%		72.6	%		N/A	40	bps	N/A
Average Daily Rate	$	342.70		$	343.05			N/A	(0.1)	%	N/A

(1)	The 12 Comparable Hotels exclude the Boston Park Plaza, which was sold in October 2023, and the Montage Healdsburg and the Four Seasons Resort Napa Valley, which were newly-developed and not open in 2019. The 12 Comparable Hotels include both prior ownership results and the Company’s ownership results for The Confidante Miami Beach, acquired by the Company in June 2022.
(2)	October 2023 results are preliminary and may be adjusted during the Company’s month-end close process.
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(3)	The 14 Comparable Hotels include all hotels owned by the Company at September 30, 2023 except the Boston Park Plaza and include both prior ownership results and the Company’s ownership results for The Confidante Miami Beach, acquired by the Company in June 2022.
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Capital Investments Update

The Company invested $24.7 million and $73.9 million into its portfolio during the third quarter and first nine months of 2023, respectively, and $34.9 million and $97.5 million during the same periods in 2022. The Company now expects to invest approximately $110 million to $120 million into its portfolio in 2023, which is a reduction of $25 million as compared to the midpoint of its estimated range at the start of the year as certain capital expenditures related to the transformational conversion of The Confidante Miami Beach to Andaz Miami Beach are now expected to be incurred in 2024. The Company anticipates that it will incur approximately $12 million to $13 million of EBITDAre displacement in 2023 in connection with its planned capital investments.

2023 Outlook

For the fourth quarter of 2023, the Company expects:


Metric ($ in millions, except per share data)		Quarter Ended December 31, 2023 Guidance (1)
Net Income		$125 to $130
Total Portfolio RevPAR Growth (2)		- 3.0% to - 6.0%
Total Portfolio RevPAR Growth, excluding The Confidante Miami Beach (2)		- 0.5% to - 3.5%
Adjusted EBITDAre		$48 to $53
Adjusted FFO Attributable to Common Stockholders		$30 to $35
Adjusted FFO Attributable to Common Stockholders per Diluted Share		$0.14 to $0.17
Diluted Weighted Average Shares Outstanding		205,500,000

(1)	Detailed reconciliations of Net Income to non-GAAP financial measures are provided later in this release.
(2)	RevPAR Growth reflects comparison to the fourth quarter of 2022.
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Fourth quarter 2023 guidance is based in part on the following full year assumptions:

●	A reduction of $2 million to $3 million in expected EBITDAre in the fourth quarter due to the combined impact of the disruption in demand at the Wailea Beach Resort following the Maui fires in early August and the sale of the Boston Park Plaza in late October.
●	Full year total Adjusted EBITDAre displacement of approximately $12 million to $13 million in connection with planned capital investments.
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●	Full year corporate overhead expense (excluding deferred stock amortization) of approximately $21.0 million to $22.0 million, a decrease of $0.5 million as compared to the Company’s prior forecast.
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●	Full year interest expense of approximately $49 million to $50 million, including approximately $3 million in amortization of deferred financing costs and approximately $3 million of noncash benefit from interest on derivatives.
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●	Full year preferred stock dividends of approximately $14 million, which includes the Series G, H and I cumulative redeemable preferred stock.
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Dividend Update

The Company expects to declare a fourth quarter common dividend that will be payable to stockholders of record as of December 29, 2023. The fourth quarter dividend will be paid in cash and will consist of the Company’s recently increased regular $0.07 per share quarterly dividend and an additional amount to distribute more of the Company’s expected taxable income. The amount of the total fourth quarter dividend will be declared in December and could be impacted by a variety of factors, including a material change in operating performance. The level of any future quarterly dividends will be determined by the Company’s board of directors after considering long-term operating projections, expected capital requirements and risks affecting the Company’s business.

On November 2, 2023, the Company’s Board of Directors declared cash dividends of $0.030365 per share payable to its Series G cumulative redeemable preferred stockholder, $0.382813 per share payable to its Series H cumulative redeemable preferred stockholders and $0.356250 per share payable to its Series I cumulative redeemable preferred stockholders. The dividends will be paid on January 16, 2024 to stockholders of record as of December 29, 2023.

Supplemental Disclosures

Contemporaneous with this release, the Company has furnished a Form 8-K with unaudited financial information. This additional information is being provided as a supplement to the information in this release and other filings with the SEC. The Company has no obligation to update any of the information provided to conform to actual results or changes in the Company’s portfolio, capital structure or future expectations.

Earnings Call

The Company will host a conference call to discuss third quarter financial results on November 7, 2023, at 12:00 p.m. Eastern Time (9:00 a.m. Pacific Time). A live webcast of the call will be available via the Investor Relations section of the Company’s website at www.sunstonehotels.com. Alternatively, interested parties may dial 1-888-330-3573 and reference conference ID 4831656 to listen to the live call. A replay of the webcast will also be archived on the website. 4

About Sunstone Hotel Investors, Inc.

Sunstone Hotel Investors, Inc. is a lodging real estate investment trust (“REIT”) that as of the date of this release owns 14 hotels comprised of 6,675 rooms, the majority of which are operated under nationally recognized brands. Sunstone’s strategy is to create long-term stakeholder value through the acquisition, active ownership and disposition of well-located hotel and resort real estate. For further information, please visit Sunstone’s website at www.sunstonehotels.com. The Company’s website is provided as a reference only and any information on the website is not incorporated by reference in this release.

Forward-Looking Statements

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 “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,” “will” and other similar terms and phrases, including opinions, 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 that 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: we own upper upscale and luxury hotels in an industry that is highly competitive; events beyond our control, including economic slowdowns or recessions, pandemics, natural disasters, civil unrest and terrorism; rising hotel operating costs, including wages, employee-related benefits, food costs, commodity costs, including those used to renovate or reposition our hotels, property taxes, property and liability insurance and utilities may not be offset by increased room rates; system security risks, data protection breaches, cyber-attacks and systems integration issues, including those impacting the Company’s suppliers, hotel managers or franchisors; a significant portion of our hotels are geographically concentrated so we may be harmed by economic downturns or natural disasters in these areas of the country; we face possible risks associated with the physical and transitional effects of climate change; uninsured or underinsured losses could harm our financial condition; the operating results of some of our hotels are significantly reliant upon group and transient business generated by large corporate customers, and the loss of such customers for any reason could harm our operating results; the increased use of virtual meetings and other similar technologies could lessen the need for business-related travel, and, therefore, demand for rooms in our hotels may be adversely affected; our hotels have an ongoing need for capital investment and we may incur significant capital expenditures in connection with acquisitions, repositionings and other improvements, some of which are mandated by applicable laws or regulations or agreements with third parties, and the costs of such renovations, repositionings or improvements may exceed our expectations or cause other problems; delays in the acquisition, renovation or repositioning of hotel properties may have adverse effects on our results of operations and returns to our stockholders; accounting for the acquisition of a hotel property or other entity involves assumptions and estimations to determine fair value that could differ materially from the actual results achieved in future periods; volatility in the debt and equity markets may adversely affect our ability to acquire, renovate, refinance or sell our hotels; we may pursue joint venture investments that could be adversely affected by our lack of sole decision-making authority, our reliance on a co-venturer’s financial condition and disputes between us and our co-venturer; we may be subject to unknown or contingent liabilities related to recently sold or acquired hotels, as well as hotels we may sell or acquire in the future; we may seek to acquire a portfolio of hotels or a company, which could present more risks to our business and financial results than the acquisition of a single hotel; the sale of a hotel or portfolio of hotels is typically subject to contingencies, risks and uncertainties, any of which may cause us to be unsuccessful in completing the disposition; the illiquidity of real estate investments and the lack of alternative uses of hotel properties could significantly limit our ability to respond to adverse changes in the performance of our hotels; we may issue or invest in hotel loans, including subordinated or mezzanine loans, which could involve greater risks of loss than senior loans secured by income-producing real properties; if we make or invest in mortgage loans with the intent of gaining ownership of the hotel secured by or pledged to the loan, our ability to perfect an ownership interest in the hotel is subject to the sponsor’s willingness to forfeit the property in lieu of the debt; one of our hotels is subject to a ground lease with an unaffiliated party, the termination of which by the lessor for any reason, including due to our default on the lease, could cause us to lose the ability to operate the hotel altogether and may adversely affect our results of operations; because we are a REIT, we depend on third-parties to operate our hotels; we are subject to risks associated with our operators’ employment of hotel personnel; most of our hotels operate under a brand owned by Marriott, Hilton, Hyatt, Four Seasons or Montage. Should any of these brands experience a negative event, or receive negative publicity, our operating results may be harmed; our franchisors and brand managers may adopt new policies or change existing policies which could result in increased costs that could negatively impact our hotels; future adverse litigation judgments or settlements resulting from legal proceedings could have an adverse effect on our financial condition; claims by persons regarding our properties could affect the attractiveness of our hotels or cause us to incur additional expenses; the hotel business is seasonal and seasonal variations in business volume at our hotels will cause quarterly fluctuations in our revenue; changes in the debt and equity markets may adversely affect the value of our hotels; certain of our hotels have in the past become impaired and additional hotels may become impaired in the future; laws and governmental regulations may restrict the ways in which we use our hotel properties and increase the cost of compliance with such regulations. Noncompliance with such regulations could subject us to penalties, loss of value of our properties or civil damages; corporate responsibility, specifically related to ESG factors and commitments, may impose additional costs and expose us to new risks that could adversely affect our results of operations, financial condition and cash flows; our franchisors and brand managers may require us to make capital expenditures pursuant to property improvement plans or to comply with brand standards; termination of any of our franchise, management or operating lease agreements could cause us to lose business or lead to a default or acceleration 5

of our obligations under certain of our debt instruments; the growth of alternative reservation channels could adversely affect our business and profitability; the failure of tenants in our hotels to make rent payments under our retail and restaurant leases may adversely affect our results of operations; we rely on our corporate and hotel senior management teams, the loss of whom may cause us to incur costs and harm our business; if we fail to maintain effective internal control over financial reporting and disclosure controls and procedures, we may not be able to accurately report our financial results; we have outstanding debt which may restrict our financial flexibility; certain of our debt is subject to variable interest rates, which can create uncertainty in forecasting our interest expense and may negatively impact our operating results; and other risks and uncertainties associated with the Company’s business described in its 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 forward-looking information provided herein 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.

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

Non-GAAP Financial Measures

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

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

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

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

We also present Adjusted FFO attributable to common stockholders when evaluating our operating performance because we believe that the exclusion of certain additional items described below provides useful supplemental information to investors regarding our ongoing operating performance, and may facilitate comparisons of operating performance between periods and our peer companies. 6

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

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

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

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

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

●

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

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

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

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

Comparable operating statistics in this release include both prior ownership results and the Company’s ownership results for The Confidante Miami Beach, acquired by the Company in June 2022. We obtained prior ownership information from the previous owner of The Confidante Miami Beach during the due diligence period before acquiring the hotel. We performed a limited review of the information as part of our analysis of the acquisition. We believe providing comparable hotel data is useful to us and to investors in evaluating our operating performance because this measure helps us and investors evaluate and compare the results of our operations from period to period by removing the fluctuations caused by any acquisitions or dispositions.

Reconciliations of net income to EBITDAre, Adjusted EBITDAre, excluding noncontrolling interest, FFO attributable to common stockholders, Adjusted FFO attributable to common stockholders, hotel Adjusted EBITDAre and hotel Adjusted EBITDAre margins are set forth in the following pages of this release.

Sunstone Hotel Investors, Inc.

Consolidated Balance Sheets

(In thousands, except share and per share data)


	September 30,			December 31,
	2023		****	2022
	(unaudited)
Assets
Investment in hotel properties, net	$	2,580,421		$	2,840,928
Operating lease right-of-use assets, net		13,884			15,025
Cash and cash equivalents		113,768			101,223
Restricted cash		71,228			55,983
Accounts receivable, net		28,646			42,092
Prepaid expenses and other assets, net		33,106			27,566
Assets held for sale		247,776			—
Total assets	$	3,088,829		$	3,082,817

Liabilities and Stockholders' Equity
Debt, net of unamortized deferred financing costs	$	814,702		$	812,681
Operating lease obligations		17,884			19,012
Accounts payable and accrued expenses		60,854			73,735
Dividends and distributions payable		17,765			13,995
Other liabilities		74,542			78,433
Liabilities of assets held for sale		15,397			—
Total liabilities		1,001,144			997,856

Commitments and contingencies

Stockholders' equity:
Preferred stock, $0.01 par value, 100,000,000 shares authorized:
Series G Cumulative Redeemable Preferred Stock, 2,650,000 shares issued and outstanding at both September 30, 2023 and December 31, 2022, stated at liquidation preference of $25.00 per share		66,250			66,250
6.125% Series H Cumulative Redeemable Preferred Stock, 4,600,000 shares issued and outstanding at both September 30, 2023 and December 31, 2022, stated at liquidation preference of $25.00 per share		115,000			115,000
5.70% Series I Cumulative Redeemable Preferred Stock, 4,000,000 shares issued and outstanding at both September 30, 2023 and December 31, 2022, stated at liquidation preference of $25.00 per share		100,000			100,000
Common stock, $0.01 par value, 500,000,000 shares authorized, 205,623,316 shares issued and outstanding at September 30, 2023 and 209,320,447 shares issued and outstanding at December 31, 2022		2,056			2,093
Additional paid in capital		2,434,649			2,465,595
Distributions in excess of retained earnings		(630,270)			(663,977)
Total stockholders' equity		2,087,685			2,084,961

Total liabilities and stockholders' equity	$	3,088,829		$	3,082,817

Sunstone Hotel Investors, Inc.

Unaudited Consolidated Statements of Operations

(In thousands, except per share data)


		Three Months Ended September 30,				Nine Months Ended September 30,
	****	2023		2022		2023		2022

Revenues
Room		$	158,467	$	158,400	$	484,304	$	428,893
Food and beverage			64,007		63,476		213,634		174,717
Other operating			25,226		22,438		69,317		64,299
Total revenues			247,700		244,314		767,255		667,909
Operating expenses
Room			41,034		38,791		122,756		106,594
Food and beverage			47,777		47,181		148,309		125,959
Other operating			6,129		6,440		18,031		17,965
Advertising and promotion			12,767		12,325		39,686		34,420
Repairs and maintenance			10,060		9,382		29,112		27,369
Utilities			7,784		7,708		21,644		19,652
Franchise costs			4,278		4,145		12,756		11,429
Property tax, ground lease and insurance			21,709		19,714		60,320		53,160
Other property-level expenses			29,020		29,032		92,654		83,333
Corporate overhead			7,127		7,879		23,991		27,310
Depreciation and amortization			33,188		31,750		97,927		94,003
Total operating expenses			220,873		214,347		667,186		601,194
Interest and other income			1,218		270		6,398		4,766
Interest expense			(11,894)		(9,269)		(34,911)		(20,288)
Gain on sale of assets			—		—		—		22,946
Gain (loss) on extinguishment of debt, net			9		(770)		9,930		(962)
Income before income taxes			16,160		20,198		81,486		73,177
Income tax (provision) benefit, net			(602)		290		(1,763)		126
Net income			15,558		20,488		79,723		73,303
Income from consolidated joint venture attributable to noncontrolling interest			—		—		—		(3,477)
Preferred stock dividends			(3,226)		(3,351)		(10,762)		(10,897)
Income attributable to common stockholders		$	12,332	$	17,137	$	68,961	$	58,929

Basic and diluted per share amounts:
Basic and diluted income attributable to common stockholders per common share		$	0.06	$	0.08	$	0.33	$	0.27

Basic weighted average common shares outstanding			205,570		211,010		206,257		213,799
Diluted weighted average common shares outstanding			205,782		211,289		206,553		213,869

Distributions declared per common share		$	0.07	$	0.05	$	0.17	$	0.05

Sunstone Hotel Investors, Inc.

Reconciliation of Net Income to Non-GAAP Financial Measures

(Unaudited and in thousands)

Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre**, Excluding Noncontrolling Interest**


	Three Months Ended September 30,					Nine Months Ended September 30,
	2023		****	2022		2023			2022

Net income	$	15,558		$	20,488	$	79,723	$	73,303
Operations held for investment:
Depreciation and amortization		33,188			31,750		97,927		94,003
Interest expense		11,894			9,269		34,911		20,288
Income tax provision (benefit), net		602			(290)		1,763		(126)
Gain on sale of assets		—			—		—		(22,946)
EBITDAre		61,242			61,217		214,324		164,522

Operations held for investment:
Amortization of deferred stock compensation		2,511			2,230		8,263		8,661
Amortization of right-of-use assets and obligations		(13)			(350)		(82)		(1,050)
Amortization of contract intangibles, net		(19)			(19)		(55)		(43)
Finance lease obligation interest - cash ground rent		—			—		—		(117)
(Gain) loss on extinguishment of debt, net		(9)			770		(9,930)		962
Hurricane-related insurance restoration proceeds net of losses		—			—		(3,722)		(2,755)
Noncontrolling interest		—			—		—		(5,175)
Adjustments to EBITDAre, net		2,470			2,631		(5,526)		483

Adjusted EBITDAre, excluding noncontrolling interest	$	63,712		$	63,848	$	208,798	$	165,005

Sunstone Hotel Investors, Inc.

Reconciliation of Net Income to Non-GAAP Financial Measures

(Unaudited and in thousands, except per share data)

Reconciliation of Net Income to FFO Attributable to Common Stockholders and

Adjusted FFO Attributable to Common Stockholders


		Three Months Ended September 30,					Nine Months Ended September 30,
		2023		****	2022		2023			2022

Net income	****	$	15,558		$	20,488	$	79,723	$	73,303
Preferred stock dividends			(3,226)			(3,351)		(10,762)		(10,897)
Operations held for investment:
Real estate depreciation and amortization			33,025			31,313		97,456		92,796
Gain on sale of assets			—			—		—		(22,946)
Noncontrolling interest			—			—		—		(4,933)
FFO attributable to common stockholders			45,357			48,450		166,417		127,323

Operations held for investment:
Amortization of deferred stock compensation			2,511			2,230		8,263		8,661
Real estate amortization of right-of-use assets and obligations			(124)			(288)		(371)		(868)
Amortization of contract intangibles, net			84			141		252		344
Noncash interest on derivatives, net			(1,469)			(39)		(3,348)		(2,904)
(Gain) loss on extinguishment of debt, net			(9)			770		(9,930)		962
Hurricane-related insurance restoration proceeds net of losses			—			—		(3,722)		(2,755)
Noncontrolling interest			—			—		—		132
Adjustments to FFO attributable to common stockholders, net			993			2,814		(8,856)		3,572

Adjusted FFO attributable to common stockholders		$	46,350		$	51,264	$	157,561	$	130,895

FFO attributable to common stockholders per diluted share		$	0.22		$	0.23	$	0.80	$	0.59

Adjusted FFO attributable to common stockholders per diluted share		$	0.23		$	0.24	$	0.76	$	0.61

Basic weighted average shares outstanding			205,570			211,010		206,257		213,799
Shares associated with unvested restricted stock awards			411			594		473		350
Diluted weighted average shares outstanding			205,981			211,604		206,730		214,149

Sunstone Hotel Investors, Inc.

Reconciliation of Net Income to Non-GAAP Financial Measures

Guidance for Fourth Quarter 2023

(Unaudited and in thousands, except for per share amounts)

Reconciliation of Net Income to Adjusted EBITDAre


	Quarter Ended
	December 31, 2023
		Low	****		High

Net income	$	124,900		$	130,300
Depreciation and amortization		28,800			28,800
Interest expense		14,200			13,800
Income tax provision		600			600
Amortization of deferred stock compensation		2,500			2,500
Gain on sale of assets		(123,000)			(123,000)
Adjusted EBITDAre	$	48,000		$	53,000

Reconciliation of Net Income to Adjusted FFO Attributable to Common Stockholders


		Quarter Ended
		December 31, 2023
			Low	****		High

Net income	****	$	124,900		$	130,300
Preferred stock dividends			(3,200)			(3,200)
Real estate depreciation and amortization			28,500			28,500
Amortization of deferred stock compensation			2,500			2,500
Gain on sale of assets			(123,000)			(123,000)
Adjusted FFO attributable to common stockholders		$	29,700		$	35,100

Adjusted FFO attributable to common stockholders per diluted share		$	0.14		$	0.17

Diluted weighted average shares outstanding			205,500			205,500

Sunstone Hotel Investors, Inc.

Non-GAAP Financial Measures

Hotel Adjusted EBITDAre and Margins

(Unaudited and in thousands)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022

Comparable Hotel Adjusted EBITDAre Margin (1)		27.0%		28.4%		28.9%		29.0%


Total revenues	$	247,700	$	244,314	$	767,255	$	667,909
Non-hotel revenues (2)		(19)		(19)		(55)		(57)
Total Actual Hotel Revenues		247,681		244,295		767,200		667,852
Prior ownership hotel revenues (3)		—		—		—		22,637
Sold hotel revenues (4)		—		—		—		(3,234)
Comparable Hotel Revenues	$	247,681	$	244,295	$	767,200	$	687,255


Net income	$	15,558	$	20,488	$	79,723	$	73,303
Non-hotel revenues (2)		(19)		(19)		(55)		(57)
Non-hotel operating expenses, net (5)		(270)		(270)		(895)		(1,085)
Taxes assessed on commercial rents (6)		82		115		444		115
Property-level hurricane-related restoration expenses (7)		—		—		—		1,614
Corporate overhead		7,127		7,879		23,991		27,310
Depreciation and amortization		33,188		31,750		97,927		94,003
Interest and other income		(1,218)		(270)		(6,398)		(4,766)
Interest expense		11,894		9,269		34,911		20,288
Gain on sale of assets		—		—		—		(22,946)
(Gain) loss on extinguishment of debt, net		(9)		770		(9,930)		962
Income tax provision (benefit), net		602		(290)		1,763		(126)
Actual Hotel Adjusted EBITDAre		66,935		69,422		221,481		188,615
Prior ownership hotel Adjusted EBITDAre (3)		—		—		—		8,630
Sold hotel Adjusted EBITDAre (4)		—		—		—		2,172
Comparable Hotel Adjusted EBITDAre	$	66,935	$	69,422	$	221,481	$	199,417

*Footnotes on following page 14

(1)	Comparable Hotel Adjusted EBITDAre Margin is calculated as Comparable Hotel Adjusted EBITDAre divided by Comparable Hotel Revenues.
(2)	Non-hotel revenues include the amortization of any favorable or unfavorable contract intangibles recorded in conjunction with the Company's hotel acquisitions.
---	---
(3)	Prior ownership hotel revenues and Adjusted EBITDAre for the first nine months of 2022 include results for The Confidante Miami Beach prior to the Company’s acquisition of the hotel in June 2022. The Company obtained prior ownership information from the hotel’s previous owner during the due diligence period before acquiring the hotel. The Company performed a limited review of the information as part of its analysis of the acquisition. The Company determined the amount to include as pro forma depreciation expense based on the hotel’s actual depreciation expense recognized by the Company.
---	---
(4)	Sold hotel revenues and Adjusted EBITDAre for the first nine months of 2022 include results for the Embassy Suites Chicago and the Hilton Garden Inn Chicago Downtown/Magnificent Mile, sold in March 2022, and the Hyatt Centric Chicago Magnificent Mile, sold in February 2022.
---	---
(5)	Non-hotel operating expenses, net for both the third quarters and first nine months of 2023 and 2022 include the amortization of hotel real estate-related right-of-use assets and obligations. Non-hotel operating expenses, net for both the first nine months of 2023 and 2022 include prior year property tax credits related to sold hotels. Non-hotel operating expenses, net for the first nine months of 2022 also include the amortization of a favorable management agreement contract intangible prior to the hotel's sale in March 2022, and finance lease obligation interest - cash ground rent prior to the hotel's sale in February 2022.
---	---
(6)	Taxes assessed on commercial rents for both the third quarters of 2023 and 2022 include $0.1 million and for the first nine months of 2023 and 2022 include $0.4 million and $0.1 million, respectively, at the Hyatt Regency San Francisco.
---	---
(7)	Property-level hurricane-related restoration expenses for the first nine months of 2022 include $1.6 million incurred at the Hilton New Orleans St. Charles and the JW Marriott New Orleans.
---	---

Exhibit 99.2


<br><br><br><br>Supplemental Financial Information<br><br>For the quarter ended September 30, 2023<br><br>November 7, 2023<br><br>

Supplemental Financial Information November 7, 2023

Table of Contents


Corporate Profile And Disclosures Regarding Non-GAAP Financial Measures								2
Comparable Corporate Financial Information								7
Capitalization								19
Property-Level Data And Operating Statistics								22
Property-Level Revenues, Adjusted EBITDAre & Adjusted EBITDAre Margins								28

Supplemental Financial Information November 7, 2023

CORPORATE PROFILE AND DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES


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

Supplemental Financial Information November 7, 2023

About Sunstone

Sunstone Hotel Investors, Inc. (the “Company,” “we,” and “our”) (NYSE: SHO) is a lodging real estate investment trust (“REIT”) that as of November 7, 2023 owns 14 hotels comprised of 6,675 rooms, the majority of which are operated under nationally recognized brands. Sunstone’s strategy is to create long-term stakeholder value through the acquisition, active ownership and disposition of well-located hotel and resort real estate.

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

Corporate Headquarters 15 Enterprise, Suite 200 Aliso Viejo, CA 92656 (949) 330-4000

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

Aaron Reyes Chief Financial Officer (949) 382-3018


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

Supplemental Financial Information November 7, 2023

Non-GAAP Financial Measures


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

Supplemental Financial Information November 7, 2023

●	Amortization of deferred stock compensation: we exclude the noncash expense incurred with the amortization of deferred stock compensation as this expense is based on historical stock prices at the date of grant to our corporate employees and does not reflect the underlying performance of our hotels.
●	Amortization of contract intangibles: we exclude the noncash amortization of any favorable or unfavorable contract intangibles recorded in conjunction with our hotel acquisitions. We exclude the noncash amortization of contract intangibles because it is based on historical cost accounting and is of lesser significance in evaluating our actual performance for the current period.
---	---
●	Gains or losses from debt transactions: we exclude the effect of finance charges and premiums associated with the extinguishment of debt, including the acceleration of deferred financing costs from the original issuance of the debt being redeemed or retired because, like interest expense, their removal helps investors evaluate and compare the results of our operations from period to period by removing the impact of our capital structure.
---	---
●	Cumulative effect of a change in accounting principle: from time to time, the FASB promulgates new accounting standards that require the consolidated statement of operations to reflect the cumulative effect of a change in accounting principle. We exclude these one-time adjustments, which include the accounting impact from prior periods, because they do not reflect our actual performance for that period.
---	---
●	Other adjustments: we exclude other adjustments that we believe are outside the ordinary course of business because we do not believe these costs reflect our actual performance for the period and/or the ongoing operations of our hotels. Such items may include: lawsuit settlement costs; the write-off of development costs associated with abandoned projects; property-level restructuring, severance and management transition costs; debt resolution costs; lease terminations; property insurance restoration proceeds or uninsured losses; and other nonrecurring identified adjustments.
---	---


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

Supplemental Financial Information November 7, 2023

The 15 Hotel Portfolio consists of all hotels owned by the Company as of September 30, 2023. The 15 Hotel Portfolio presented for the third quarter of 2019 and the first nine months of 2022 and 2019 includes prior ownership results for The Confidante Miami Beach acquired by the Company in June 2022. The Company obtained prior ownership information from the prior owner of The Confidante Miami Beach during the due diligence period before acquiring the hotel. The Company performed a limited review of the information as part of its analysis of the acquisition.

The 13 Hotel Portfolio consists of the 15 Hotel Portfolio, excluding the Montage Healdsburg and the Four Seasons Resort Napa Valley, which were acquired in April 2021 and December 2021, respectively. Both the Montage Healdsburg and the Four Seasons Resort Napa Valley were newly-developed hotels that were not open in 2019. The 13 Hotel Portfolio presented for the third quarter of 2019 and the first nine months of 2022 and 2019 includes prior ownership results for The Confidante Miami Beach acquired by the Company in June 2022.


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

Supplemental Financial Information November 7, 2023

COMPARABLE CORPORATE FINANCIAL INFORMATION


COMPARABLE CORPORATE FINANCIAL INFORMATION			Page 7

Supplemental Financial Information November 7, 2023

Comparable Consolidated Statements of Operations

Q3 2023 – Q4 2022, Trailing 12 Months


	Quarter Ended (1)								Trailing 12 Months (1)
(Unaudited and in thousands, except per share data)	September 30,		June 30,		March 31,		December 31,		Ended
	2023		2023		2023		2022		September 30, 2023
Revenues
Room	$	158,467	$	173,399	$	152,438	$	147,277	$	631,581
Food and beverage		64,007		78,815		70,812		65,847		279,481
Other operating		25,226		23,898		20,193		31,020		100,337
Total revenues		247,700		276,112		243,443		244,144		1,011,399

Operating Expenses
Room		41,034		42,658		39,064		38,691		161,447
Food and beverage		47,777		51,997		48,535		48,187		196,496
Other expenses		91,747		92,211		90,245		84,308		358,511
Corporate overhead		7,127		8,396		8,468		7,936		31,927
Depreciation and amortization		33,188		32,397		32,342		32,393		130,320
Impairment loss		—		—		—		3,466		3,466
Total operating expenses		220,873		227,659		218,654		214,981		882,167

Interest and other income		1,218		4,639		541		476		6,874
Interest expense		(11,894)		(9,223)		(13,794)		(11,717)		(46,628)
Income before income taxes		16,151		43,869		11,536		17,922		89,478
Income tax provision, net		(602)		(803)		(358)		(485)		(2,248)
Net income	$	15,549	$	43,066	$	11,178	$	17,437	$	87,230

Comparable Hotel Adjusted EBITDAre (2)	$	66,935	$	89,133	$	65,413	$	61,866	$	283,347

Comparable Adjusted EBITDAre (3)	$	63,712	$	85,057	$	60,029	$	68,777	$	277,575

Comparable Adjusted FFO attributable to common stockholders (4)	$	46,350	$	67,387	$	43,824	$	53,733	$	211,294

Comparable Adjusted FFO attributable to common stockholders per diluted share (4)	$	0.23	$	0.33	$	0.21	$	0.26	$	1.03

*Footnotes on page 11


COMPARABLE CORPORATE FINANCIAL INFORMATION			Page 8

Supplemental Financial Information November 7, 2023

Comparable Consolidated Statements of Operations

Q4 2022 – Q1 2022, FY 2022


	Quarter Ended (1)								Year Ended (1)
(Unaudited and in thousands, except per share data)	December 31,		September 30,		June 30,		March 31,		December 31,
	2022		2022		2022		2022		2022
Revenues
Room	$	147,277	$	158,400	$	167,194	$	115,515	$	588,386
Food and beverage		65,847		63,476		74,307		42,911		246,541
Other operating		31,020		22,438		18,711		24,360		96,529
Total revenues		244,144		244,314		260,212		182,786		931,456

Operating Expenses
Room		38,691		38,791		38,626		30,425		146,533
Food and beverage		48,187		47,181		48,304		34,233		177,905
Other expenses		84,308		88,746		87,269		75,023		335,346
Corporate overhead		7,936		7,879		8,717		10,714		35,246
Depreciation and amortization		32,393		31,750		31,720		31,711		127,574
Impairment loss		3,466		—		—		—		3,466
Total operating expenses		214,981		214,347		214,636		182,106		826,070

Interest and other income		476		270		116		4,380		5,242
Interest expense		(11,717)		(9,269)		(5,938)		(4,964)		(31,888)
Loss on extinguishment of debt		—		(784)		—		(230)		(1,014)
Income (loss) before income taxes		17,922		20,184		39,754		(134)		77,726
Income tax (provision) benefit, net		(485)		290		(28)		(136)		(359)
Net income (loss)	$	17,437	$	20,474	$	39,726	$	(270)	$	77,367

Comparable Hotel Adjusted EBITDAre (2)	$	61,866	$	69,422	$	87,308	$	42,687	$	261,283

Comparable Adjusted EBITDAre (3)	$	68,777	$	63,848	$	80,031	$	37,103	$	249,759

Comparable Adjusted FFO attributable to common stockholders (4)	$	53,733	$	51,264	$	69,051	$	26,183	$	200,231

Comparable Adjusted FFO attributable to common stockholders per diluted share (4)	$	0.26	$	0.25	$	0.34	$	0.13	$	0.98

*Footnotes on page 11


COMPARABLE CORPORATE FINANCIAL INFORMATION			Page 9

Supplemental Financial Information November 7, 2023

Comparable Consolidated Statements of Operations

Q4 2019 – Q1 2019, FY 2019


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

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

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

Comparable Hotel Adjusted EBITDAre (2)	$	67,146	$	68,778	$	84,305	$	68,415	$	288,644

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

*Footnotes on page 11


COMPARABLE CORPORATE FINANCIAL INFORMATION			Page 10

Supplemental Financial Information November 7, 2023

Comparable Consolidated Statements of Operations

Footnotes

(1)	Excludes results for the Courtyard by Marriott Los Angeles, the Renaissance Harborplace, the Renaissance Los Angeles Airport, the Renaissance Westchester, the Embassy Suites La Jolla and the Hyatt Centric Chicago Magnificent Mile sold in October 2019, July 2020, December 2020, October 2021, December 2021 and February 2022, respectively, along with the Embassy Suites Chicago and the Hilton Garden Inn Chicago Downtown/Magnificent Mile sold in March 2022. Also excludes results and the gain on extinguishment of debt due to the resolution of potential employee-related obligations for the Hilton Times Square in connection with the assignment-in-lieu agreement executed in December 2020 between the Company and the hotel’s mortgage holder which transferred the Company’s leasehold interest in the hotel to the mortgage holder, and the elimination of interest expense on the mortgage loan secured by the Renaissance Washington DC due to its repayment in December 2020. Includes prior ownership results for The Confidante Miami Beach acquired by the Company in June 2022, adjusted for the Company's pro forma depreciation expense.
(2)	Comparable Hotel Adjusted EBITDAre reconciliations for the third quarters of 2023, 2022 and 2019 can be found later in this presentation. Additional details can be found in our earnings release, furnished in Exhibit 99.1 to our 8-K filed on November 7, 2023. Comparable Hotel Adjusted EBITDAre presented for the first, second and third quarters of 2023 and the four quarters and year ended December 31, 2022 includes the 15 Hotel Portfolio. Comparable Hotel Adjusted EBITDAre presented for the four quarters and year ended December 31, 2019 includes the 13 Hotel Portfolio.
---	---
(3)	Comparable Adjusted EBITDAre reconciliations for each of the periods included in this presentation can be found in the following pages and reflect the adjustments noted in Footnote 1 above, along with the elimination of noncontrolling interest due to the Company's acquisition of the outside 25% ownership interest in the joint venture that owned the Hilton San Diego Bayfront in June 2022.
---	---
(4)	Comparable Adjusted FFO attributable to common stockholders and Comparable Adjusted FFO attributable to common stockholders per diluted share reconciliations for the 2023 and 2022 periods included in this presentation can be found in the following pages and reflect the adjustments noted in Footnotes 1 and 3 above, along with repurchases totaling 10,245,324 shares of common stock in the first, second, third and fourth quarters of 2022 and 3,827,759 shares of common stock in the first, second and third quarters of 2023.
---	---


COMPARABLE CORPORATE FINANCIAL INFORMATION			Page 11

Supplemental Financial Information November 7, 2023

Comparable Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre

Q3 2023 – Q4 2022, Trailing 12 Months


	Quarter Ended								Trailing 12 Months
	September 30,		June 30,		March 31,		December 31,		Ended
(In thousands)	2023		2023		2023		2022		September 30, 2023

Net income	$	15,558	$	43,078	$	21,087	$	17,463	$	97,186
Operations held for investment:
Depreciation and amortization		33,188		32,397		32,342		32,393		130,320
Interest expense		11,894		9,223		13,794		11,717		46,628
Income tax provision, net		602		803		358		485		2,248
Impairment loss - depreciable assets		—		—		—		1,379		1,379
EBITDAre		61,242		85,501		67,581		63,437		277,761

Operations held for investment:
Amortization of deferred stock compensation		2,511		3,325		2,427		2,230		10,493
Amortization of right-of-use assets and obligations		(13)		(17)		(52)		(359)		(441)
Amortization of contract intangibles, net		(19)		(18)		(18)		(18)		(73)
Gain on extinguishment of debt		(9)		(12)		(9,909)		(26)		(9,956)
Hurricane-related insurance restoration proceeds		—		(3,722)		—		—		(3,722)
Property-level severance		—		—		—		729		729
Costs associated with financing no longer pursued		—		—		—		697		697
Impairment loss - right-of-use asset		—		—		—		2,087		2,087
Adjustments to EBITDAre, net		2,470		(444)		(7,552)		5,340		(186)


Comparable Adjusted EBITDAre	$	63,712	$	85,057	$	60,029	$	68,777	$	277,575


COMPARABLE CORPORATE FINANCIAL INFORMATION			Page 12

Supplemental Financial Information November 7, 2023

Comparable Reconciliation of Net Income to FFO and Adjusted FFO Attributable to Common Stockholders

Q3 2023 – Q4 2022, Trailing 12 Months


	Quarter Ended								Trailing 12 Months
	September 30,		June 30,		March 31,		December 31,		Ended
(In thousands, except per share data)	2023		2023		2023		2022		September 30, 2023

Net income	$	15,558	$	43,078	$	21,087	$	17,463	$	97,186
Preferred stock dividends		(3,226)		(3,768)		(3,768)		(3,350)		(14,112)
Operations held for investment:
Real estate depreciation and amortization		33,025		32,240		32,191		32,023		129,479
FFO attributable to common stockholders		45,357		71,550		49,510		46,136		212,553

Operations held for investment:
Amortization of deferred stock compensation		2,511		3,325		2,427		2,230		10,493
Real estate amortization of right-of-use assets and obligations		(124)		(128)		(119)		(287)		(658)
Amortization of contract intangibles, net		84		85		83		78		330
Noncash interest on derivatives, net		(1,469)		(3,711)		1,832		710		(2,638)
Gain on extinguishment of debt		(9)		(12)		(9,909)		(26)		(9,956)
Hurricane-related insurance restoration proceeds		—		(3,722)		—		—		(3,722)
Property-level severance		—		—		—		729		729
Costs associated with financing no longer pursued		—		—		—		697		697
Impairment losses - right-of-use and depreciable assets		—		—		—		3,466		3,466
Adjustments to FFO attributable to common stockholders, net		993		(4,163)		(5,686)		7,597		(1,259)


Comparable Adjusted FFO attributable to common stockholders	$	46,350	$	67,387	$	43,824	$	53,733	$	211,294

Comparable Adjusted FFO attributable to common stockholders per diluted share	$	0.23	$	0.33	$	0.21	$	0.26	$	1.03

Basic weighted average shares outstanding		205,570		206,181		207,035		209,097		206,971
Shares associated with unvested restricted stock awards		411		733		501		449		524
Diluted weighted average shares outstanding		205,981		206,914		207,536		209,546		207,494
Equity transactions (1)		(979)		(1,621)		(2,690)		(4,893)		(2,546)
Comparable diluted weighted average shares outstanding		205,002		205,293		204,846		204,653		204,949

(1)	Equity transactions represent repurchases totaling 2,249,764 shares of common stock in the fourth quarter of 2022, along with the repurchases of 1,964,923, 301,461 and 1,561,375 shares of common stock in the first, second and third quarters of 2023, respectively.


COMPARABLE CORPORATE FINANCIAL INFORMATION			Page 13

Supplemental Financial Information November 7, 2023

Comparable Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre ****

Q4 2022 – Q1 2022, FY 2022


	Quarter Ended								Year Ended
	December 31,		September 30,		June 30,		March 31,		December 31,
(In thousands)	2022		2022		2022		2022		2022

Net income	$	17,463	$	20,488	$	37,692	$	15,123	$	90,766
Operations held for investment:
Depreciation and amortization		32,393		31,750		30,893		31,360		126,396
Interest expense		11,717		9,269		5,938		5,081		32,005
Income tax provision (benefit), net		485		(290)		28		136		359
Gain on sale of assets		—		—		—		(22,946)		(22,946)
Impairment loss - depreciable assets		1,379		—		—		—		1,379
EBITDAre		63,437		61,217		74,551		28,754		227,959

Operations held for investment:
Amortization of deferred stock compensation		2,230		2,230		2,853		3,578		10,891
Amortization of right-of-use assets and obligations		(359)		(350)		(354)		(346)		(1,409)
Amortization of contract intangibles, net		(18)		(19)		(18)		(6)		(61)
Finance lease obligation interest - cash ground rent		—		—		—		(117)		(117)
(Gain) loss on extinguishment of debt, net		(26)		770		(21)		213		936
Hurricane-related losses net of insurance restoration proceeds		—		—		138		(2,893)		(2,755)
Property-level severance		729		—		—		—		729
Costs associated with financing no longer pursued		697		—		—		—		697
Impairment loss - right-of-use asset		2,087		—		—		—		2,087
Noncontrolling interest:
Income from consolidated joint venture attributable to noncontrolling interest		—		—		(2,343)		(1,134)		(3,477)
Depreciation and amortization		—		—		(666)		(790)		(1,456)
Interest expense		—		—		(206)		(168)		(374)
Amortization of right-of-use asset and obligation		—		—		60		72		132
Adjustments to EBITDAre, net		5,340		2,631		(557)		(1,591)		5,823

Adjusted EBITDAre, excluding noncontrolling interest		68,777		63,848		73,994		27,163		233,782
Sold hotel Adjusted EBITDAre (1)		—		—		—		2,172		2,172
Acquisition hotel Adjusted EBITDAre (2)		—		—		6,037		7,768		13,805

Comparable Adjusted EBITDAre	$	68,777	$	63,848	$	80,031	$	37,103	$	249,759

*Footnotes on page 16


COMPARABLE CORPORATE FINANCIAL INFORMATION			Page 14

Supplemental Financial Information November 7, 2023

Comparable Reconciliation of Net Income to FFO and Adjusted FFO Attributable to Common Stockholders

Q4 2022 – Q1 2022, FY 2022


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

Net income	$	17,463	$	20,488	$	37,692	$	15,123	$	90,766
Preferred stock dividends		(3,350)		(3,351)		(3,773)		(3,773)		(14,247)
Operations held for investment:
Real estate depreciation and amortization		32,023		31,313		30,456		31,027		124,819
Gain on sale of assets		—		—		—		(22,946)		(22,946)
Noncontrolling interest:
Income from consolidated joint venture attributable to noncontrolling interest		—		—		(2,343)		(1,134)		(3,477)
Real estate depreciation and amortization		—		—		(666)		(790)		(1,456)
FFO attributable to common stockholders		46,136		48,450		61,366		17,507		173,459

Operations held for investment:
Amortization of deferred stock compensation		2,230		2,230		2,853		3,578		10,891
Real estate amortization of right-of-use assets and obligations		(287)		(288)		(294)		(286)		(1,155)
Amortization of contract intangibles, net		78		141		143		60		422
Noncash interest on derivatives, net		710		(39)		(1,023)		(1,842)		(2,194)
(Gain) loss on extinguishment of debt, net		(26)		770		(21)		213		936
Hurricane-related losses net of insurance restoration proceeds		—		—		138		(2,893)		(2,755)
Property-level severance		729		—		—		—		729
Costs associated with financing no longer pursued		697		—		—		—		697
Impairment losses - right-of-use and depreciable assets		3,466		—		—		—		3,466
Noncontrolling interest:
Real estate amortization of right-of-use asset and obligation		—		—		60		72		132
Noncash interest on derivatives, net		—		—		(2)		2		—
Adjustments to FFO attributable to common stockholders, net		7,597		2,814		1,854		(1,096)		11,169

Adjusted FFO attributable to common stockholders		53,733		51,264		63,220		16,411		184,628
Sold hotel Adjusted FFO (1)		—		—		—		2,172		2,172
Acquisition hotel Adjusted FFO (2)		—		—		5,831		7,600		13,431

Comparable Adjusted FFO attributable to common stockholders	$	53,733	$	51,264	$	69,051	$	26,183	$	200,231

Comparable Adjusted FFO attributable to common stockholders per diluted share	$	0.26	$	0.25	$	0.34	$	0.13	$	0.98

Basic weighted average shares outstanding		209,097		211,010		213,183		217,271		212,613
Shares associated with unvested restricted stock awards		449		594		354		305		358
Diluted weighted average shares outstanding		209,546		211,604		213,537		217,576		212,971
Equity transactions (3)		(4,893)		(6,806)		(8,996)		(13,332)		(8,479)
Comparable diluted weighted average shares outstanding		204,653		204,798		204,541		204,244		204,492

*Footnotes on page 16


COMPARABLE CORPORATE FINANCIAL INFORMATION			Page 15

Supplemental Financial Information November 7, 2023

Comparable Reconciliation of Net Income to EBITDAre**, Adjusted EBITDAre,**

FFO and Adjusted FFO Attributable to Common Stockholders

Q4 2022 – Q1 2022, FY 2022 Footnotes

(1)	Sold hotel Adjusted EBITDAre and Adjusted FFO include results for the Hyatt Centric Chicago Magnificent Mile sold in February 2022, along with the Embassy Suites Chicago and the Hilton Garden Inn Chicago Downtown/Magnificent Mile sold in March 2022.
(2)	Acquisition hotel Adjusted EBITDAre and Adjusted FFO include prior ownership results for The Confidante Miami Beach acquired by the Company in June 2022, along with the elimination of noncontrolling interest due to the Company's acquisition of the outside 25% ownership interest in the joint venture that owned the Hilton San Diego Bayfront in June 2022.
---	---
(3)	Equity transactions represent repurchases totaling 3,879,025, 3,235,958, 880,577 and 2,249,764 shares of common stock in the first, second, third and fourth quarters of 2022, respectively, along with the repurchases of 1,964,923, 301,461 and 1,561,375 shares of common stock in the first, second and third quarters of 2023, respectively.
---	---


COMPARABLE CORPORATE FINANCIAL INFORMATION			Page 16

Supplemental Financial Information November 7, 2023

Comparable Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre

Q4 2019 – Q1 2019, FY 2019


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

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

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

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

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

*Footnotes on Page 18


COMPARABLE CORPORATE FINANCIAL INFORMATION			Page 17

Supplemental Financial Information November 7, 2023

Comparable Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre

Q4 2019 – Q1 2019, FY 2019 Footnotes

(1)

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

(2)

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

---


COMPARABLE CORPORATE FINANCIAL INFORMATION			Page 18


	Supplemental Financial Information November 7, 2023

CAPITALIZATION


CAPITALIZATION			Page 19

Supplemental Financial Information November 7, 2023

Comparative Capitalization Q3 2023 – Q3 2022


	September 30,			June 30,			March 31,			December 31,			September 30,
(In thousands, except per share data)	2023		****	2023		****	2023		****	2022		****	2022

Common Share Price & Dividends
At the end of the quarter	$	9.35		$	10.12		$	9.88		$	9.66		$	9.42
High during quarter ended	$	10.50		$	10.79		$	11.26		$	11.19		$	12.22
Low during quarter ended	$	8.67		$	9.39		$	8.87		$	9.42		$	9.42
Common dividends per share	$	0.07		$	0.05		$	0.05		$	0.05		$	0.05

Common Shares & Units
Common shares outstanding		205,623			207,185			207,410			209,320			211,570
Units outstanding		—			—			—			—			—
Total common shares and units outstanding		205,623			207,185			207,410			209,320			211,570

Capitalization ****
Market value of common equity	$	1,922,578		$	2,096,709		$	2,049,211		$	2,022,036		$	1,992,991
Liquidation value of preferred equity - Series G		66,250			66,250			66,250			66,250			66,250
Liquidation value of preferred equity - Series H		115,000			115,000			115,000			115,000			115,000
Liquidation value of preferred equity - Series I		100,000			100,000			100,000			100,000			100,000
Total debt		819,582			820,100			815,612			816,136			816,647
Total capitalization	$	3,023,410		$	3,198,059		$	3,146,073		$	3,119,422		$	3,090,888

Total debt to total capitalization		27.1	%		25.6	%		25.9	%		26.2	%		26.4	%
Total debt and preferred equity to total capitalization		36.4	%		34.4	%		34.9	%		35.2	%		35.5	%


CAPITALIZATION			Page 20

Supplemental Financial Information November 7, 2023

Debt Summary Schedule


(In thousands)				Interest Rate /		Maturity			September 30, 2023
Debt	****	Collateral	****	Spread	****	Date (1)			Balance

Secured Mortgage Debt		JW Marriott New Orleans		4.15%		12/11/2024		$	74,582
Series A Senior Notes		Unsecured		4.69%		01/10/2026			65,000
Term Loan 3 (2)		Unsecured		6.78%		05/01/2026			225,000
Term Loan 1 (3)		Unsecured		5.25%		07/25/2027			175,000
Revolving Line of Credit		Unsecured		Adj. SOFR + 1.40%		07/25/2027			—
Series B Senior Notes		Unsecured		4.79%		01/10/2028			105,000
Term Loan 2 (3)		Unsecured		6.76%		01/25/2028			175,000

Total Debt								$	819,582

Preferred Stock
Series G cumulative redeemable preferred (4)				1.878%		perpetual		$	66,250
Series H cumulative redeemable preferred				6.125%		perpetual			115,000
Series I cumulative redeemable preferred				5.70%		perpetual			100,000
Total Preferred Stock								$	281,250

Debt and Preferred Statistics
						Debt Statistics			Debt and Preferred Statistics
% Fixed Rate Debt						51.2	%		63.7	%
% Floating Rate Debt						48.8	%		36.3	%
Average Interest Rate						5.79	%		5.58	%
Weighted Average Maturity of Debt						3.3 years			N/A

(1)	Maturity Date assumes the exercise of all available extensions for the Revolving Line of Credit and Term Loan 3. By extending these loans, the Company's weighted average maturity of debt increases from 3.0 years to 3.3 years.
(2)	In May 2023, the Company entered into a new $225.0 million term loan agreement ("Term Loan 3"). Interest rates on Term Loan 3 are calculated on a leverage-based pricing grid ranging from 135 to 220 basis points over the applicable adjusted term SOFR. Term Loan 3 has an initial term of two years with one 12-month extension, which would result in an extended maturity of May 2026.
---	---
(3)	Pursuant to the Second Amended Credit Agreement, interest rates on Term Loan 1 and Term Loan 2 are calculated on a leverage-based pricing grid ranging from 135 to 220 basis points over the applicable adjusted term SOFR. In May 2023, the pricing grid was reduced by 0.02% to a range of 133 to 218 basis points as the Company achieved the 2022 sustainability performance metric specified in the Second Amended Credit Agreement. The reduction in the pricing grid will be evaluated annually and is subject to the Company's continued ability to satisfy its sustainability metric. The interest rate for Term Loan 1 includes the effects of the Company's interest rate derivative swaps.
---	---
(4)	The Series G cumulative redeemable preferred stock has an initial dividend rate equal to the Montage Healdsburg's annual net operating income yield on the Company's investment in the resort. Year to date through the date of this release, the Company declared cash dividends of $0.469437 per share, which equates to an annual yield of 1.878%. The annual dividend rate may increase in 2024 to the greater of 3.0% or the rate equal to the Montage Healdsburg's annual net operating income yield on the Company's total investment in the resort.
---	---


CAPITALIZATION			Page 21

Supplemental Financial Information November 7, 2023

PROPERTY-LEVEL DATA AND OPERATING STATISTICS


PROPERTY-LEVEL DATA AND OPERATING STATISTICS			Page 22

Supplemental Financial Information November 7, 2023

Hotel Information as of November 7, 2023


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

1	Hilton San Diego Bayfront (1) (2)		California		Hilton		1,190		18%		Leasehold		2011 / 2022
2	Hyatt Regency San Francisco		California		Hyatt		821		12%		Fee Simple		2013
3	The Westin Washington, DC Downtown		Washington DC		Marriott		807		12%		Fee Simple		2005
4	Renaissance Orlando at SeaWorld®		Florida		Marriott		781		12%		Fee Simple		2005
5	Wailea Beach Resort		Hawaii		Marriott		547		8%		Fee Simple		2014
6	JW Marriott New Orleans (3)		Louisiana		Marriott		501		8%		Fee Simple		2011
7	Marriott Boston Long Wharf		Massachusetts		Marriott		415		6%		Fee Simple		2007
8	Renaissance Long Beach		California		Marriott		374		6%		Fee Simple		2005
9	The Confidante Miami Beach		Florida		Hyatt		339		5%		Fee Simple		2022
10	The Bidwell Marriott Portland		Oregon		Marriott		258		4%		Fee Simple		2000
11	Hilton New Orleans St. Charles		Louisiana		Hilton		252		4%		Fee Simple		2013
12	Oceans Edge Resort & Marina		Florida		Independent		175		3%		Fee Simple		2017
13	Montage Healdsburg		California		Montage		130		2%		Fee Simple		2021
14	Four Seasons Resort Napa Valley (4)		California		Four Seasons		85		1%		Fee Simple		2021

	Total Portfolio						6,675		100%

(1)	In June 2022, the Company acquired the 25.0% noncontrolling partner's ownership interest in the Hilton San Diego Bayfront. Following this acquisition, the Company owns 100% of the hotel.
(2)	The ground lease at the Hilton San Diego Bayfront matures in 2071.
---	---
(3)	Hotel is subject to a municipal airspace lease that matures in 2044 and applies only to certain balcony space that is not integral to the hotel’s operations.
---	---
(4)	The number of rooms at the Four Seasons Resort Napa Valley excludes rooms provided by owners of the separately owned Four Seasons Private Residences Napa Valley who may periodically elect to participate in the residential rental program.
---	---


PROPERTY-LEVEL DATA AND OPERATING STATISTICS			Page 23

Supplemental Financial Information November 7, 2023

Property-Level Operating Statistics

ADR, Occupancy and RevPAR

Q3 2023/2022/2019


	ADR								Occupancy								RevPAR
Hotels sorted by number of rooms	For the Quarter Ended September 30,								For the Quarter Ended September 30,							For the Quarter Ended September 30,
	2023		****	2022		2019	****	2023 vs. 2022	2023	****	2022	2019	****	2023 vs. 2022		2023		****	2022			2019	****	2023 vs. 2022
Hilton San Diego Bayfront (1)	$	285.02	$	286.56	$	262.84		(0.5)%	86.8%		87.9%	89.1%		(110)	bps	$	247.40		$	251.89	$	234.19		(1.8)%
Boston Park Plaza	$	259.25	$	238.87	$	239.18		8.5%	95.1%		90.1%	96.3%		500	bps	$	246.55		$	215.22	$	230.33		14.6%
Hyatt Regency San Francisco (1)	$	288.54	$	281.26	$	308.12		2.6%	72.8%		62.4%	92.4%		1,040	bps	$	210.06		$	175.51	$	284.70		19.7%
The Westin Washington, DC Downtown (1)	$	237.45	$	211.46	$	198.93		12.3%	57.3%		47.9%	79.0%		940	bps	$	136.06		$	101.29	$	157.15		34.3%
Renaissance Orlando at SeaWorld®	$	162.67	$	158.60	$	128.70		2.6%	59.5%		69.5%	68.6%		(1,000)	bps	$	96.79		$	110.23	$	88.29		(12.2)%
Wailea Beach Resort	$	643.33	$	721.50	$	465.12		(10.8)%	75.1%		82.3%	88.8%		(720)	bps	$	483.14		$	593.79	$	413.03		(18.6)%
JW Marriott New Orleans	$	191.33	$	194.83	$	174.99		(1.8)%	63.8%		56.9%	78.3%		690	bps	$	122.07		$	110.86	$	137.02		10.1%
Marriott Boston Long Wharf	$	422.30	$	412.47	$	380.36		2.4%	84.4%		85.0%	94.0%		(60)	bps	$	356.42		$	350.60	$	357.54		1.7%
Renaissance Long Beach	$	209.54	$	209.71	$	183.73		(0.1)%	82.8%		74.1%	83.8%		870	bps	$	173.50		$	155.40	$	153.97		11.6%
The Confidante Miami Beach (1)	$	194.49	$	222.54	$	143.14		(12.6)%	43.1%		62.8%	71.0%		(1,970)	bps	$	83.83		$	139.76	$	101.63		(40.0)%
The Bidwell Marriott Portland	$	174.74	$	187.22	$	210.27		(6.7)%	58.4%		55.5%	88.3%		290	bps	$	102.05		$	103.91	$	185.67		(1.8)%
Hilton New Orleans St. Charles	$	136.08	$	150.49	$	139.90		(9.6)%	49.7%		55.6%	68.8%		(590)	bps	$	67.63		$	83.67	$	96.25		(19.2)%
Oceans Edge Resort & Marina (1)	$	265.08	$	350.96	$	180.60		(24.5)%	72.8%		65.3%	83.5%		750	bps	$	192.98		$	229.18	$	150.80		(15.8)%

13 Hotel Portfolio (2)	$	282.89	$	287.75	$	248.22		(1.7)%	73.2%		72.0%	84.8%		120	bps	$	207.08		$	207.18	$	210.49		0.0%

Montage Healdsburg	$	1,089.08	$	1,267.66		N/A		(14.1)%	56.8%		53.6%	N/A		320	bps	$	618.60		$	679.47		N/A		(9.0)%
Four Seasons Resort Napa Valley	$	1,498.33	$	1,976.80		N/A		(24.2)%	59.7%		41.4%	N/A		1,830	bps	$	894.50		$	818.40		N/A		9.3%

15 Hotel Portfolio (3)	$	305.69	$	311.62		N/A		(1.9)%	72.8%		71.4%	N/A		140	bps	$	222.54		$	222.50		N/A		0.0%

*Footnotes on page 27


PROPERTY-LEVEL DATA AND OPERATING STATISTICS			Page 24

Supplemental Financial Information November 7, 2023

Property-Level Operating Statistics

ADR, Occupancy and RevPAR

Q3 YTD 2023/2022/2019


	ADR								Occupancy								RevPAR
Hotels sorted by number of rooms	For the Nine Months Ended September 30,								For the Nine Months Ended September 30,							For the Nine Months Ended September 30,
	2023		****	2022		2019	****	2023 vs. 2022	2023	****	2022	2019	****	2023 vs. 2022		2023		****	2022			2019	****	2023 vs. 2022
Hilton San Diego Bayfront (1)	$	282.39	$	274.76	$	257.32		2.8%	85.1%		76.8%	81.1%		830	bps	$	240.31		$	211.02	$	208.69		13.9%
Boston Park Plaza	$	241.79	$	222.50	$	217.24		8.7%	83.9%		74.4%	91.4%		950	bps	$	202.86		$	165.54	$	198.56		22.5%
Hyatt Regency San Francisco (1)	$	300.37	$	262.03	$	322.89		14.6%	70.6%		55.3%	89.2%		1,530	bps	$	212.06		$	144.90	$	288.02		46.3%
The Westin Washington, DC Downtown (1)	$	259.97	$	242.60	$	230.93		7.2%	56.1%		51.6%	79.7%		450	bps	$	145.84		$	125.18	$	184.05		16.5%
Renaissance Orlando at SeaWorld®	$	195.69	$	183.62	$	165.99		6.6%	73.8%		68.0%	78.1%		580	bps	$	144.42		$	124.86	$	129.64		15.7%
Wailea Beach Resort	$	688.44	$	684.67	$	469.49		0.6%	76.6%		81.3%	91.7%		(470)	bps	$	527.35		$	556.64	$	430.52		(5.3)%
JW Marriott New Orleans	$	239.90	$	232.10	$	205.67		3.4%	70.7%		59.2%	84.4%		1,150	bps	$	169.61		$	137.40	$	173.59		23.4%
Marriott Boston Long Wharf	$	381.16	$	381.40	$	337.94		(0.1)%	74.5%		65.8%	87.5%		870	bps	$	283.96		$	250.96	$	295.70		13.1%
Renaissance Long Beach	$	225.33	$	209.25	$	193.19		7.7%	78.8%		74.8%	82.9%		400	bps	$	177.56		$	156.52	$	160.15		13.4%
The Confidante Miami Beach (1)	$	292.60	$	309.49	$	199.68		(5.5)%	63.3%		72.7%	80.1%		(940)	bps	$	185.22		$	225.00	$	159.94		(17.7)%
The Bidwell Marriott Portland	$	172.92	$	171.19	$	190.04		1.0%	56.7%		49.1%	85.2%		760	bps	$	98.05		$	84.05	$	161.91		16.7%
Hilton New Orleans St. Charles	$	181.50	$	179.95	$	168.21		0.9%	67.2%		56.0%	76.6%		1,120	bps	$	121.97		$	100.77	$	128.85		21.0%
Oceans Edge Resort & Marina (1)	$	367.83	$	451.74	$	244.81		(18.6)%	76.6%		76.4%	90.2%		20	bps	$	281.76		$	345.13	$	220.82		(18.4)%

13 Hotel Portfolio (2)	$	293.86	$	290.10	$	254.13		1.3%	73.8%		67.1%	84.6%		670	bps	$	216.87		$	194.66	$	214.99		11.4%

Montage Healdsburg	$	1,071.48	$	1,096.14		N/A		(2.2)%	54.0%		57.0%	N/A		(300)	bps	$	578.60		$	624.80		N/A		(7.4)%
Four Seasons Resort Napa Valley	$	1,521.24	$	1,757.55		N/A		(13.4)%	46.7%		45.1%	N/A		160	bps	$	710.42		$	792.66		N/A		(10.4)%

15 Hotel Portfolio (3)	$	313.08	$	313.10		N/A		0.0%	73.2%		66.7%	N/A		650	bps	$	229.17		$	208.84		N/A		9.7%

*Footnotes on page 27


PROPERTY-LEVEL DATA AND OPERATING STATISTICS			Page 25

Supplemental Financial Information November 7, 2023

Property-Level Operating Statistics

Total RevPAR (TRevPAR)

Q3 and YTD 2023/2022/2019


Hotels sorted by number of rooms	For the Three Months Ended September 30,								For the Nine Months Ended September 30,
	2023		2022		****	2019	****	2023 vs. 2022	2023		2022		****	2019		****	2023 vs. 2022
Hilton San Diego Bayfront (1)	$	447.35	$	435.88	$	394.00		2.6%	$	438.14	$	366.79		$	364.67		19.5%
Boston Park Plaza	$	348.85	$	297.27	$	309.64		17.4%	$	295.74	$	234.58		$	275.05		26.1%
Hyatt Regency San Francisco (1)	$	281.86	$	245.90	$	377.78		14.6%	$	300.65	$	212.29		$	407.67		41.6%
The Westin Washington, DC Downtown (1)	$	209.61	$	166.29	$	254.73		26.1%	$	216.02	$	192.75		$	292.43		12.1%
Renaissance Orlando at SeaWorld®	$	218.47	$	251.12	$	207.76		(13.0)%	$	322.76	$	279.21		$	293.54		15.6%
Wailea Beach Resort	$	672.95	$	854.83	$	594.74		(21.3)%	$	768.37	$	816.98		$	614.80		(5.9)%
JW Marriott New Orleans	$	167.56	$	147.50	$	176.68		13.6%	$	232.28	$	174.71		$	228.09		33.0%
Marriott Boston Long Wharf	$	488.13	$	477.65	$	478.49		2.2%	$	395.97	$	346.11		$	411.89		14.4%
Renaissance Long Beach	$	227.11	$	194.45	$	210.53		16.8%	$	232.00	$	201.03		$	221.18		15.4%
The Confidante Miami Beach (1)	$	150.65	$	241.78	$	189.96		(37.7)%	$	302.38	$	357.01		$	282.64		(15.3)%
The Bidwell Marriott Portland	$	143.04	$	140.22	$	212.05		2.0%	$	136.40	$	113.84		$	186.06		19.8%
Hilton New Orleans St. Charles	$	82.30	$	99.10	$	111.71		(17.0)%	$	149.44	$	131.01		$	146.35		14.1%
Oceans Edge Resort & Marina (1)	$	345.39	$	371.84	$	256.39		(7.1)%	$	447.13	$	510.27		$	343.32		(12.4)%

13 Hotel Portfolio (2)	$	316.76	$	317.37	$	313.35		(0.2)%	$	339.03	$	300.40		$	328.42		12.9%

Montage Healdsburg	$	1,135.83	$	1,143.87		N/A		(0.7)%	$	1,051.09	$	1,100.20			N/A		(4.5)%
Four Seasons Resort Napa Valley	$	1,710.40	$	1,319.24		N/A		29.7%	$	1,309.98	$	1,296.27			N/A		1.1%

15 Hotel Portfolio (3)	$	347.60	$	343.03		N/A		1.3%	$	362.86	$	325.29			N/A		11.5%

*Footnotes on page 27


PROPERTY-LEVEL DATA AND OPERATING STATISTICS			Page 26

Supplemental Financial Information November 7, 2023

Property-Level Operating Statistics

Q3 and YTD 2023/2022/2019 Footnotes

(1)	Operating statistics for the third quarter and first nine months of 2023 are impacted by renovation activity at The Confidante Miami Beach. Operating statistics for the third quarter and first nine months of 2023 and 2022 are impacted by renovation activity at The Westin Washington, DC Downtown. Operating statistics for the third quarter and first nine months of 2022 are also impacted by renovation activity at the Hyatt Regency San Francisco. Operating statistics for the third quarter and first nine months of 2019 are impacted by renovation activity at the Hilton San Diego Bayfront, the Hyatt Regency San Francisco and the Oceans Edge Resort & Marina.
(2)	The 13 Hotel Portfolio consists of the 15 Hotel Portfolio (defined below), excluding the Montage Healdsburg and the Four Seasons Resort Napa Valley, which were acquired in April 2021 and December 2021, respectively. Both the Montage Healdsburg and the Four Seasons Resort Napa Valley were newly-developed hotels that were not open in 2019. The 13 Hotel Portfolio presented for the third quarter of 2019 and the first nine months of 2022 and 2019 includes prior ownership results for The Confidante Miami Beach acquired by the Company in June 2022. The Company obtained prior ownership information from the prior owner of The Confidante Miami Beach during the due diligence period before acquiring the hotel. The Company performed a limited review of the information as part of its analysis of the acquisition.
---	---
(3)	The 15 Hotel Portfolio consists of all hotels owned by the Company as of September 30, 2023. The 15 Hotel Portfolio presented for the first nine months of 2022 includes prior ownership results for The Confidante Miami Beach acquired by the Company in June 2022.
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PROPERTY-LEVEL DATA AND OPERATING STATISTICS			Page 27

Supplemental Financial Information November 7, 2023

PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre &

ADJUSTED EBITDAre MARGINS


PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS			Page 28

Supplemental Financial Information November 7, 2023

Property-Level Revenues, Adjusted EBITDAre and Adjusted EBITDAre Margins

Q3 2023/2022


Hotels sorted by number of rooms	For the Three Months Ended September 30,
	2023								2022
(In thousands)							Hotel Adjusted								Hotel Adjusted		Hotel Adjusted
	Total			Hotel Adjusted			EBITDAre		Total			Hotel Adjusted			EBITDAre		EBITDAre
	Revenues		****	EBITDAre		****	Margins	****	Revenues		****	EBITDAre		****	Margins	****	Margin Change
Hilton San Diego Bayfront	$	48,975		$	16,101		32.9%		$	47,720		$	17,244		36.1%		(320)	bps
Boston Park Plaza		34,020			12,926		38.0%			28,989			9,086		31.3%		670	bps
Hyatt Regency San Francisco (1)		21,289			2,060		9.7%			18,574			1,657		8.9%		80	bps
The Westin Washington, DC Downtown (1)		15,563			1,813		11.6%			12,346			1,335		10.8%		80	bps
Renaissance Orlando at SeaWorld®		15,697			3,336		21.3%			18,043			4,685		26.0%		(470)	bps
Wailea Beach Resort		33,866			12,513		36.9%			43,019			17,860		41.5%		(460)	bps
JW Marriott New Orleans		7,724			1,759		22.8%			6,798			1,449		21.3%		150	bps
Marriott Boston Long Wharf		18,637			8,182		43.9%			18,237			8,236		45.2%		(130)	bps
Renaissance Long Beach		7,814			1,963		25.1%			6,691			1,815		27.1%		(200)	bps
The Confidante Miami Beach (1)		4,699			(986)		(21.0)%			7,540			756		10.0%		(3,100)	bps
The Bidwell Marriott Portland		3,395			732		21.6%			3,328			792		23.8%		(220)	bps
Hilton New Orleans St. Charles		1,908			35		1.8%			2,298			343		14.9%		(1,310)	bps
Oceans Edge Resort & Marina		5,561			1,202		21.6%			5,986			1,571		26.2%		(460)	bps
Montage Healdsburg		13,584			2,259		16.6%			13,681			2,146		15.7%		90	bps
Four Seasons Resort Napa Valley		14,949			3,040		20.3%			11,045			447		4.0%		1,630	bps

15 Hotel Portfolio (2)		247,681			66,935		27.0%			244,295			69,422		28.4%		(140)	bps

Actual Portfolio (3)	$	247,681		$	66,935		27.0%		$	244,295		$	69,422		28.4%		(140)	bps

*Footnotes on page 33


PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS			Page 29

Supplemental Financial Information November 7, 2023

Property-Level Revenues, Adjusted EBITDAre and Adjusted EBITDAre Margins

Q3 2023/2019


Hotels sorted by number of rooms	For the Three Months Ended September 30,
	2023								2019
(In thousands)							Hotel Adjusted								Hotel Adjusted		Hotel Adjusted
	Total			Hotel Adjusted			EBITDAre		Total			Hotel Adjusted			EBITDAre		EBITDAre
	Revenues		****	EBITDAre		****	Margins	****	Revenues		****	EBITDAre		****	Margins	****	Margin Change
Hilton San Diego Bayfront (1)	$	48,975		$	16,101		32.9%		$	43,134		$	15,020		34.8%		(190)	bps
Boston Park Plaza		34,020			12,926		38.0%			30,195			11,289		37.4%		60	bps
Hyatt Regency San Francisco (1)		21,289			2,060		9.7%			27,985			7,116		25.4%		(1,570)	bps
The Westin Washington, DC Downtown (1)		15,563			1,813		11.6%			18,912			4,136		21.9%		(1,030)	bps
Renaissance Orlando at SeaWorld®		15,697			3,336		21.3%			14,928			3,625		24.3%		(300)	bps
Wailea Beach Resort		33,866			12,513		36.9%			29,932			11,644		38.9%		(200)	bps
JW Marriott New Orleans		7,724			1,759		22.8%			8,143			2,465		30.3%		(750)	bps
Marriott Boston Long Wharf		18,637			8,182		43.9%			18,269			7,994		43.8%		10	bps
Renaissance Long Beach		7,814			1,963		25.1%			7,243			2,216		30.6%		(550)	bps
The Confidante Miami Beach (1)		4,699			(986)		(21.0)%			6,187			5		0.1%		(2,110)	bps
The Bidwell Marriott Portland		3,395			732		21.6%			4,858			2,181		44.9%		(2,330)	bps
Hilton New Orleans St. Charles		1,908			35		1.8%			2,589			392		15.1%		(1,330)	bps
Oceans Edge Resort & Marina (1)		5,561			1,202		21.6%			4,128			695		16.8%		480	bps

13 Hotel Portfolio (4)		219,148			61,636		28.1%			216,503			68,778		31.8%		(370)	bps

Montage Healdsburg		13,584			2,259		16.6%			N/A			N/A		N/A		N/A
Four Seasons Resort Napa Valley		14,949			3,040		20.3%			N/A			N/A		N/A		N/A

15 Hotel Portfolio (2)		247,681			66,935		27.0%			216,503			68,778		31.8%		N/A

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

Add: Sold/Disposed Hotels (6)		N/A			N/A		N/A			71,301			17,992		25.2%		N/A

Actual Portfolio (3)	$	247,681		$	66,935		27.0%		$	281,617		$	86,765		30.8%		N/A

*Footnotes on page 33


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

Supplemental Financial Information November 7, 2023

Property-Level Revenues, Adjusted EBITDAre and Adjusted EBITDAre Margins

Q3 YTD 2023/2022


Hotels sorted by number of rooms	For the Nine Months Ended September 30,
	2023								2022
(In thousands)							Hotel Adjusted								Hotel Adjusted		Hotel Adjusted
	Total			Hotel Adjusted			EBITDAre		Total			Hotel Adjusted			EBITDAre		EBITDAre
	Revenues		****	EBITDAre		****	Margins	****	Revenues		****	EBITDAre		****	Margins	****	Margin Change
Hilton San Diego Bayfront	$	142,337		$	46,973		33.0%		$	119,160		$	40,225		33.8%		(80)	bps
Boston Park Plaza		85,582			26,604		31.1%			67,884			16,395		24.2%		690	bps
Hyatt Regency San Francisco (1)		67,385			10,483		15.6%			47,581			3,278		6.9%		870	bps
The Westin Washington, DC Downtown (1)		47,593			8,386		17.6%			42,465			8,763		20.6%		(300)	bps
Renaissance Orlando at SeaWorld®		68,817			22,757		33.1%			59,530			18,725		31.5%		160	bps
Wailea Beach Resort		114,742			43,969		38.3%			122,001			51,541		42.2%		(390)	bps
JW Marriott New Orleans		31,770			12,504		39.4%			23,895			8,081		33.8%		560	bps
Marriott Boston Long Wharf		44,861			16,136		36.0%			39,212			14,159		36.1%		(10)	bps
Renaissance Long Beach		23,687			6,960		29.4%			20,526			6,393		31.1%		(170)	bps
The Confidante Miami Beach (1)		27,985			6,101		21.8%			33,040			9,947		30.1%		(830)	bps
The Bidwell Marriott Portland		9,607			1,776		18.5%			8,018			1,531		19.1%		(60)	bps
Hilton New Orleans St. Charles		10,281			3,537		34.4%			9,013			3,077		34.1%		30	bps
Oceans Edge Resort & Marina		21,362			7,969		37.3%			24,378			9,806		40.2%		(290)	bps
Montage Healdsburg		37,303			4,314		11.6%			39,046			4,647		11.9%		(30)	bps
Four Seasons Resort Napa Valley		33,888			3,012		8.9%			31,506			2,849		9.0%		(10)	bps

15 Hotel Portfolio (2)		767,200			221,481		28.9%			687,255			199,417		29.0%		(10)	bps

Less: Prior Ownership (5)
The Confidante Miami Beach		N/A			N/A		N/A			(22,637)			(8,630)		38.1%		N/A

Add: Sold Hotels (6)		N/A			N/A		N/A			3,234			(2,172)		(67.2)%		N/A

Actual Portfolio (3)	$	767,200		$	221,481		28.9%		$	667,852		$	188,615		28.2%		N/A

*Footnotes on page 33


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

Supplemental Financial Information November 7, 2023

Property-Level Revenues, Adjusted EBITDAre and Adjusted EBITDAre Margins

Q3 YTD 2023/2019


Hotels sorted by number of rooms	For the Nine Months Ended September 30,
	2023								2019
(In thousands)							Hotel Adjusted								Hotel Adjusted		Hotel Adjusted
	Total			Hotel Adjusted			EBITDAre		Total			Hotel Adjusted			EBITDAre		EBITDAre
	Revenues		****	EBITDAre		****	Margins	****	Revenues		****	EBITDAre		****	Margins	****	Margin Change
Hilton San Diego Bayfront (1)	$	142,337		$	46,973		33.0%		$	118,470		$	38,209		32.3%		70	bps
Boston Park Plaza		85,582			26,604		31.1%			79,594			25,329		31.8%		(70)	bps
Hyatt Regency San Francisco (1)		67,385			10,483		15.6%			89,524			24,284		27.1%		(1,150)	bps
The Westin Washington, DC Downtown (1)		47,593			8,386		17.6%			64,426			18,291		28.4%		(1,080)	bps
Renaissance Orlando at SeaWorld®		68,817			22,757		33.1%			62,586			21,395		34.2%		(110)	bps
Wailea Beach Resort		114,742			43,969		38.3%			91,809			37,016		40.3%		(200)	bps
JW Marriott New Orleans		31,770			12,504		39.4%			31,197			12,983		41.6%		(220)	bps
Marriott Boston Long Wharf		44,861			16,136		36.0%			46,665			17,770		38.1%		(210)	bps
Renaissance Long Beach		23,687			6,960		29.4%			22,582			7,226		32.0%		(260)	bps
The Confidante Miami Beach (1)		27,985			6,101		21.8%			27,315			6,011		22.0%		(20)	bps
The Bidwell Marriott Portland		9,607			1,776		18.5%			12,648			5,109		40.4%		(2,190)	bps
Hilton New Orleans St. Charles		10,281			3,537		34.4%			10,068			2,734		27.2%		720	bps
Oceans Edge Resort & Marina (1)		21,362			7,969		37.3%			16,402			5,141		31.3%		600	bps

13 Hotel Portfolio (4)		696,009			214,155		30.8%			673,286			221,498		32.9%		(210)	bps

Montage Healdsburg		37,303			4,314		11.6%			N/A			N/A		N/A		N/A
Four Seasons Resort Napa Valley		33,888			3,012		8.9%			N/A			N/A		N/A		N/A

15 Hotel Portfolio (2)		767,200			221,481		28.9%			673,286			221,498		32.9%		N/A

Less: Prior Ownership (5)
The Confidante Miami Beach		N/A			N/A		N/A			(27,315)			(6,011)		22.0%		N/A

Add: Sold/Disposed Hotels (6)		N/A			N/A		N/A			196,174			43,001		21.9%		N/A

Actual Portfolio (3)	$	767,200		$	221,481		28.9%		$	842,145		$	258,488		30.7%		N/A

*Footnotes on page 33


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

Supplemental Financial Information November 7, 2023

Property-Level Revenues, Adjusted EBITDAre and Adjusted EBITDAre Margins

Q3 and YTD 2023/2022/2019 Footnotes

(1)	Hotel Adjusted EBITDAre for the third quarter and first nine months of 2023 is impacted by renovation activity at The Confidante Miami Beach. Hotel Adjusted EBITDAre for the third quarters and first nine months of 2023 and 2022 is impacted by renovation activity at The Westin Washington, DC Downtown. Hotel Adjusted EBITDAre for the third quarter and first nine months of 2022 is also impacted by renovation activity at the Hyatt Regency San Francisco. Hotel Adjusted EBITDAre for the third quarter and first nine months of 2019 is impacted by renovation activity at the Hilton San Diego Bayfront, the Hyatt Regency San Francisco and the Oceans Edge Resort & Marina.
(2)	The 15 Hotel Portfolio consists of all hotels owned by the Company as of September 30, 2023. The 15 Hotel Portfolio presented for the third quarter of 2019 and the first nine months of 2022 and 2019 includes prior ownership results for The Confidante Miami Beach acquired by the Company in June 2022. The Company obtained prior ownership information from the prior owner of The Confidante Miami Beach during the due diligence period before acquiring the hotel. The Company performed a limited review of the information as part of its analysis of the acquisition.
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(3)	Actual Portfolio includes results for the 15 hotels owned by the Company during the third quarter and first nine months of 2023, the 15 hotels and 18 hotels owned by the Company during the third quarter and first nine months of 2022, respectively, and the 21 hotels owned by the Company during the third quarter and first nine months of 2019.
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(4)	The 13 Hotel Portfolio consists of the 15 Hotel Portfolio, excluding the Montage Healdsburg and the Four Seasons Resort Napa Valley, which were acquired in April 2021 and December 2021, respectively. Both the Montage Healdsburg and the Four Seasons Resort Napa Valley were newly-developed hotels that were not open in 2019. The 13 Hotel Portfolio presented for the third quarter and first nine months of 2019 includes prior ownership results for The Confidante Miami Beach acquired by the Company in June 2022.
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(5)	Prior Ownership includes results for The Confidante Miami Beach prior to the Company’s acquisition of the hotel in June 2022.
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(6)	Sold Hotels for the first nine months of 2022 and the third quarter and first nine months of 2019 include results for the Hyatt Centric Chicago Magnificent Mile, sold in February 2022, and the Embassy Suites Chicago and Hilton Garden Inn Chicago Downtown/Magnificent Mile, sold in March 2022. Sold/Disposed Hotels for the third quarter and first nine months of 2019 also include results for the Embassy Suites La Jolla and the Renaissance Westchester, sold in December 2021 and October 2021, respectively, the Renaissance Los Angeles Airport sold in December 2020, the Hilton Times Square assigned to its mortgage holder in December 2020, the Renaissance Harborplace sold in July 2020, and the Courtyard by Marriott Los Angeles sold in October 2019.
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PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS			Page 33