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): August 7, 2024

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 August 7, 2024, Sunstone Hotel Investors, Inc. (the “Company”) issued a press release regarding its financial results for the second quarter ended June 30, 2024. 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 August 7, 2024.
99.2		Supplemental Financial Information for the second quarter ended June 30, 2024.
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: August 7, 2024	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 SECOND QUARTER 2024

ALISO VIEJO, CA – August 7, 2024 – Sunstone Hotel Investors, Inc. (the “Company” or “Sunstone”) (NYSE: SHO) today announced results for the second quarter ended June 30, 2024.

Second Quarter 2024 Operational Results (as compared to Second Quarter 2023):

●	Net Income: Net income was $26.1 million as compared to $43.1 million.
●	Comparable RevPAR: Comparable RevPAR decreased 2.0% to $232.59. The average daily rate was $322.60 and occupancy was 72.1%. Excluding The Confidante Miami Beach as it transitions to Andaz Miami Beach, RevPAR increased 0.4%. Excluding The Confidante Miami Beach and the Marriott Long Beach Downtown, which was also under renovation in the second quarter of 2024, RevPAR increased 2.1%.
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●	Adjusted EBITDAre: Adjusted EBITDAre decreased 13.6% to $73.5 million.
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●	Adjusted FFO: Adjusted FFO attributable to common stockholders per diluted share decreased 15.2% to $0.28.
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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, “We generated second quarter earnings that were consistent with our expectations despite less robust RevPAR growth, as we were able to deliver stronger out-of-room spend and were successful in driving efficiencies and cost reductions across our portfolio. We continue to benefit from our recent investment at The Westin Washington, DC Downtown which produced record earnings in the quarter. We were also encouraged by growing demand for business travel in several of our markets including Boston and San Francisco. While overall leisure demand remains strong, the recovery in Maui has been slower, which has led to lower revenue growth and earnings expectations, primarily in the third quarter, and which is reflected in our updated guidance ranges.”

Mr. Giglia continued, “We remain focused on positioning Sunstone for outsized growth as we move into 2025 and beyond. The renovation and rebranding of our Marriott Long Beach Downtown is now complete, the finished product looks exceptional, and we look forward to seeing the growth in earnings going forward. Work is continuing on the transformation of Andaz Miami Beach, which we expect to debut by the end of the year and further contribute to earnings growth in the years to come. We retain the remaining proceeds from the sale of Boston Park Plaza, which we can use to generate shareholder value through hotel acquisitions or the repurchase of our stock.

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


	Three Months Ended June 30,								Six Months Ended June 30,
	2024		****	2023		****	Change		2024			2023			Change

Net Income	$	26.1		$	43.1		(39.3)	%	$	39.2		$	64.2		(38.9)	%
Income Attributable to Common Stockholders per Diluted Share	$	0.11		$	0.19		(42.1)	%	$	0.16		$	0.27		(40.7)	%

Comparable Operating Statistics (1)
RevPAR	$	232.59		$	237.37		(2.0)	%	$	224.68		$	232.89		(3.5)	%
Occupancy		72.1	%		74.3	%	(220)	bps		70.5	%		72.6	%	(210)	bps
Average Daily Rate	$	322.60		$	319.48		1.0	%	$	318.70		$	320.78		(0.6)	%

Comparable Operating Statistics, excluding The Confidante Miami Beach
RevPAR	$	241.96		$	240.99		0.4	%	$	232.19		$	232.53		(0.1)	%
Occupancy		75.0	%		74.9	%	10	bps		72.7	%		72.5	%	20	bps
Average Daily Rate	$	322.61		$	321.75		0.3	%	$	319.38		$	320.73		(0.4)	%

Comparable Adjusted EBITDAre Margin, excluding The Confidante Miami Beach		30.9	%		32.3	%	(140)	bps		28.3	%		30.7	%	(240)	bps

Adjusted EBITDAre	$	73.5		$	85.1		(13.6)	%	$	128.0		$	145.1		(11.8)	%
Adjusted FFO Attributable to Common Stockholders	$	56.6		$	67.4		(16.0)	%	$	94.1		$	111.2		(15.3)	%
Adjusted FFO Attributable to Common Stockholders per Diluted Share	$	0.28		$	0.33		(15.2)	%	$	0.46		$	0.54		(14.8)	%
(1)	Comparable operating statistics presented in this release include all 15 hotels owned by the Company at June 30, 2024, and include both prior ownership results and the Company's results for the Hyatt Regency San Antonio Riverwalk, acquired by the Company in April 2024.
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Recent Developments

Stock Repurchase Program. From the start of the second quarter of 2024 through August 6, 2024, the Company repurchased 698,043 shares of its common stock at an average purchase price of $9.90 per share for a total repurchase amount before expenses of $6.9 million. The average purchase price per share represents a substantial discount to consensus estimates of net asset value and implies a highly attractive valuation multiple on the Company’s stabilized cash flow. The Company currently has $447.8 million remaining under its existing stock repurchase program authorization.

Balance Sheet and Liquidity Update

As of June 30, 2024, the Company had $234.0 million of cash and cash equivalents, including restricted cash of $74.9 million, total assets of $3.1 billion, including $2.8 billion of net investments in hotel properties, total debt of $818.0 million and stockholders’ equity of $2.2 billion.

Capital Investments Update

During the second quarter of 2024, the Company invested $41.0 million into its portfolio. The majority of the investment consisted of the transformational renovation and conversion of The Confidante Miami Beach to Andaz Miami Beach, which is expected to debut late in the fourth quarter of 2024. During the second quarter, the Company substantially completed the remaining renovation work on its newly converted Marriott Long Beach Downtown. The Company currently expects to invest approximately $135 million to $155 million into its portfolio in 2024, with the majority of the investment relating to the conversions of Andaz Miami Beach and the Marriott Long Beach Downtown and a soft goods renovation at Wailea Beach Resort.

2024 Outlook

The Company’s updated full year guidance is impacted by a slower than anticipated recovery in Maui, primarily during the third quarter, and the completion of the renovation work at the recently converted Marriott Long Beach Downtown, which impacted results in the second quarter and extended into the start of the third quarter. For the full year 2024, the Company expects:


Metric ($ in millions, except per share data)	Prior Full Year 2024 Guidance (1)	Current Full Year 2024 Guidance (2)	Change in Full Year 2024 Guidance Midpoint
Net Income	$56 to $77	$55 to $65	- $6
Total Portfolio RevPAR Growth (3)	+ 2.25% to + 5.25%	- 0.25% to + 1.75%	- 300 bps
Total Portfolio RevPAR Growth, excluding The Confidante Miami Beach (3)	+ 4.75% to + 7.75%	+ 2.25% to + 4.25%	- 300 bps
Adjusted EBITDAre	$242 to $263	$242 to $252	- $6
Adjusted FFO Attributable to Common Stockholders	$171 to $192	$173 to $183	- $4
Adjusted FFO Attributable to Common Stockholders per Diluted Share	$0.84 to $0.94	$0.85 to $0.90	- $0.01
Diluted Weighted Average Shares Outstanding	204,500,000	204,000,000	- 500,000

(1)	Reflects guidance presented on May 6, 2024.
(2)	Detailed reconciliations of Net Income to non-GAAP financial measures are provided later in this release.
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(3)	RevPAR Growth reflects comparison to full year 2023.
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Full year 2024 guidance is based in part on the following full year assumptions:

●	Full year total Adjusted EBITDAre displacement of approximately $15 million to $16 million in connection with planned capital investments, an increase of $1.5 million relative to the Company’s prior estimate. The increase is the result of the completion of the renovation and conversion of the Marriott Long Beach Downtown, which was previously expected to be completed in the second quarter of 2024 but extended into the start of the third quarter.
●	Full year interest income of approximately $11 million to $12 million, an increase of $1 million relative to the Company’s prior estimate.
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●	Full year corporate overhead expense (excluding deferred stock amortization) of approximately $21 million to $22 million.
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●	Full year interest expense of approximately $49 million to $52 million, including approximately $3 million in amortization of deferred financing costs, and a $2 million noncash reduction to interest expense from derivatives. Excluding the noncash interest from derivatives, the updated range is $1 million lower than the Company’s prior estimate.
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●	Full year preferred stock dividends of approximately $15 million to $16 million, which includes the Series G, H and I cumulative redeemable preferred stock.
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●	The Confidante Miami Beach is expected to reopen as Andaz Miami Beach by the end of the fourth quarter of 2024, and the Company currently anticipates that the resort will generate an EBITDAre loss of approximately $3 million to $5 million, excluding pre-opening and certain capitalized costs, in 2024 as the comprehensive transformation is completed.
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Dividend Update

The Company’s Board of Directors has authorized a cash dividend of $0.09 per share of its common stock, as well as cash dividends of $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 October 15, 2024 to stockholders of record as of September 30, 2024.

The Company currently expects to continue to pay a quarterly cash common dividend throughout 2024. Consistent with the Company’s past practice, and to the extent that the expected regular quarterly dividends for 2024 do not satisfy its annual distribution requirements, the Company may pay an additional dividend amount in January 2025. 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.

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. 3

Earnings Call

The Company will host a conference call to discuss second quarter results on August 7, 2024, 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 1-800-715-9871 and reference conference ID 1026321 to listen to the live call. A replay of the webcast will also be archived on the website.

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 15 hotels comprised of 7,255 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 located in urban and resort destinations in an industry that is highly competitive; events beyond our control, including economic slowdowns or recessions, pandemics, natural disasters, civil unrest and terrorism; inflation adversely affecting our financial condition and results of operations; 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 disproportionately harmed by economic conditions, competition, new hotel supply, real and personal property tax rates 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 require ongoing 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, Hyatt, Hilton, Four Seasons or Montage, and 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 and operating results; 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 4

may restrict the ways in which we use our hotel properties and increase the cost of compliance with such regulations, and noncompliance with such regulations could subject us to penalties, loss of value of our properties or civil damages; corporate responsibility, specifically related to environmental sustainability, social responsibility and corporate governance, or 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 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 or otherwise comply with the material terms of 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; we could be harmed by inadvertent errors, misconduct or fraud that is difficult to detect; 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 or identify and prevent fraud; we have outstanding debt which may restrict our financial flexibility; certain of our debt is subject to variable interest rates, which creates uncertainty in the amount of interest expense we will incur in the future and may negatively impact our operating results; our stock repurchase program may not enhance long-term stockholder value, could cause volatility in the price of our common and preferred stock and could diminish our cash reserves; 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 (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, 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 as measures in determining the value of hotel acquisitions and dispositions.

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.

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 or Adjusted FFO attributable to common stockholders:

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

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

●

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

●

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; pre-opening costs associated with extensive renovation projects such as the work being performed at The Confidante Miami Beach; debt resolution costs; lease terminations; property insurance restoration proceeds or uninsured losses; and other nonrecurring identified adjustments.

In addition, to derive Adjusted EBITDAre, we 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. We also exclude the effect of gains and losses on the disposition of undepreciated assets because we believe that including them in Adjusted EBITDAre 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 as we believe that these items are not reflective of our ongoing finance costs. Additionally, we exclude the real estate amortization of our right-of-use assets and related lease obligations, which includes the amortization of our 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. We also 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.

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

Reconciliations of net income to EBITDAre, Adjusted EBITDAre, 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)


	June 30,			December 31,
	2024		****	2023
	(unaudited)
Assets
Investment in hotel properties, net	$	2,838,560		$	2,585,279
Operating lease right-of-use assets, net		10,483			12,755
Cash and cash equivalents		159,151			426,403
Restricted cash		74,853			67,295
Accounts receivable, net		37,793			31,206
Prepaid expenses and other assets, net		28,897			26,383
Total assets	$	3,149,737		$	3,149,321

Liabilities
Debt, net of unamortized deferred financing costs	$	814,263		$	814,559
Operating lease obligations		14,345			16,735
Accounts payable and accrued expenses		57,103			48,410
Dividends and distributions payable		22,987			29,965
Other liabilities		76,112			73,014
Total liabilities		984,810			982,683

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 June 30, 2024 and December 31, 2023, 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 June 30, 2024 and December 31, 2023, 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 June 30, 2024 and December 31, 2023, stated at liquidation preference of $25.00 per share		100,000			100,000
Common stock, $0.01 par value, 500,000,000 shares authorized, 203,390,392 shares issued and outstanding at June 30, 2024 and 203,479,585 shares issued and outstanding at December 31, 2023		2,034			2,035
Additional paid in capital		2,415,764			2,416,417
Distributions in excess of retained earnings		(534,121)			(533,064)
Total stockholders' equity		2,164,927			2,166,638

Total liabilities and stockholders' equity	$	3,149,737		$	3,149,321

Sunstone Hotel Investors, Inc.

Unaudited Consolidated Statements of Operations

(In thousands, except per share data)


		Three Months Ended June 30,				Six Months Ended June 30,
	****	2024		2023		2024		2023

Revenues
Room		$	151,296	$	173,399	$	287,111	$	325,837
Food and beverage			71,367		78,815		132,706		149,627
Other operating			24,818		23,898		44,830		44,091
Total revenues			247,481		276,112		464,647		519,555
Operating expenses
Room			37,345		42,658		72,896		81,722
Food and beverage			47,742		51,997		92,057		100,532
Other operating			6,394		6,145		12,338		11,902
Advertising and promotion			12,974		13,897		25,106		26,919
Repairs and maintenance			8,979		9,606		17,689		19,052
Utilities			6,295		6,768		12,239		13,860
Franchise costs			4,819		4,560		9,024		8,478
Property tax, ground lease and insurance			19,984		19,378		38,909		38,611
Other property-level expenses			28,120		31,857		55,743		63,634
Corporate overhead			8,168		8,396		15,686		16,864
Depreciation and amortization			31,112		32,397		60,152		64,739
Total operating expenses			211,932		227,659		411,839		446,313
Interest and other income			3,503		4,639		8,956		5,180
Interest expense			(12,693)		(9,223)		(23,703)		(23,017)
Gain on sale of assets, net			—		—		457		—
Gain on extinguishment of debt			38		12		59		9,921
Income before income taxes			26,397		43,881		38,577		65,326
Income tax (provision) benefit, net			(255)		(803)		600		(1,161)
Net income			26,142		43,078		39,177		64,165
Preferred stock dividends			(3,683)		(3,768)		(7,366)		(7,536)
Income attributable to common stockholders		$	22,459	$	39,310	$	31,811	$	56,629

Basic and diluted per share amounts:
Basic and diluted income attributable to common stockholders per common share		$	0.11	$	0.19	$	0.16	$	0.27

Basic weighted average common shares outstanding			202,758		206,181		202,695		206,606
Diluted weighted average common shares outstanding			203,455		206,828		203,227		207,095

Distributions declared per common share		$	0.09	$	0.05	$	0.16	$	0.10

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


	Three Months Ended June 30,					Six Months Ended June 30,
	2024		****	2023		2024			2023

Net income	$	26,142		$	43,078	$	39,177	$	64,165
Depreciation and amortization		31,112			32,397		60,152		64,739
Interest expense		12,693			9,223		23,703		23,017
Income tax provision (benefit), net		255			803		(600)		1,161
Gain on sale of assets, net		—			—		(457)		—
EBITDAre		70,202			85,501		121,975		153,082

Amortization of deferred stock compensation		3,181			3,325		5,951		5,752
Amortization of right-of-use assets and obligations		(107)			(17)		(118)		(69)
Amortization of contract intangibles, net		—			(18)		—		(36)
Gain on extinguishment of debt		(38)			(12)		(59)		(9,921)
Gain on insurance recoveries		(314)			(3,722)		(314)		(3,722)
Pre-opening costs		599			—		599		—
Adjustments to EBITDAre, net		3,321			(444)		6,059		(7,996)

Adjusted EBITDAre	$	73,523		$	85,057	$	128,034	$	145,086

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 June 30,					Six Months Ended June 30,
		2024		****	2023		2024			2023

Net income	****	$	26,142		$	43,078	$	39,177	$	64,165
Preferred stock dividends			(3,683)			(3,768)		(7,366)		(7,536)
Real estate depreciation and amortization			30,771			32,240		59,526		64,431
Gain on sale of assets, net			—			—		(457)		—
FFO attributable to common stockholders			53,230			71,550		90,880		121,060

Amortization of deferred stock compensation			3,181			3,325		5,951		5,752
Real estate amortization of right-of-use assets and obligations			(130)			(128)		(252)		(247)
Amortization of contract intangibles, net			287			85		518		168
Noncash interest on derivatives, net			(189)			(3,711)		(2,231)		(1,879)
Gain on extinguishment of debt			(38)			(12)		(59)		(9,921)
Gain on insurance recoveries			(314)			(3,722)		(314)		(3,722)
Pre-opening costs			599			—		599		—
Prior year income tax benefit, net			—			—		(948)		—
Adjustments to FFO attributable to common stockholders, net			3,396			(4,163)		3,264		(9,849)

Adjusted FFO attributable to common stockholders		$	56,626		$	67,387	$	94,144	$	111,211

FFO attributable to common stockholders per diluted share		$	0.26		$	0.35	$	0.45	$	0.58

Adjusted FFO attributable to common stockholders per diluted share		$	0.28		$	0.33	$	0.46	$	0.54

Basic weighted average shares outstanding			202,758			206,181		202,695		206,606
Shares associated with unvested restricted stock awards			932			733		820		659
Diluted weighted average shares outstanding			203,690			206,914		203,515		207,265

Sunstone Hotel Investors, Inc.

Reconciliation of Net Income to Non-GAAP Financial Measures

Guidance for Full Year 2024

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

Reconciliation of Net Income to Adjusted EBITDAre


	Year Ended
	December 31, 2024
		Low	****		High

Net income	$	54,600		$	64,600
Depreciation and amortization		123,000			123,000
Interest expense		50,500			50,500
Income tax provision, net		200			200
Amortization of deferred stock compensation		11,000			11,000
Pre-opening costs		4,000			4,000
Other items		(800)			(800)
Gain on sale of assets, net		(500)			(500)
Adjusted EBITDAre	$	242,000		$	252,000

Reconciliation of Net Income to Adjusted FFO Attributable to Common Stockholders


		Year Ended
		December 31, 2024
			Low	****		High

Net income	****	$	54,600		$	64,600
Preferred stock dividends			(15,500)			(15,500)
Real estate depreciation and amortization			122,500			122,500
Amortization of deferred stock compensation			11,000			11,000
Pre-opening costs			4,000			4,000
Noncash interest on derivatives, net			(2,000)			(2,000)
Prior year income tax benefit, net			(900)			(900)
Other items, net			(200)			(200)
Gain on sale of assets, net			(500)			(500)
Adjusted FFO attributable to common stockholders		$	173,000		$	183,000

Adjusted FFO attributable to common stockholders per diluted share		$	0.85		$	0.90

Diluted weighted average shares outstanding			204,000			204,000

Sunstone Hotel Investors, Inc.

Non-GAAP Financial Measures

Hotel Adjusted EBITDAre and Margins

(Unaudited and in thousands)


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023

Comparable Hotel Adjusted EBITDAre Margin (1)		30.7%		31.8%		27.9%		30.6%
Comparable Hotel Adjusted EBITDAre Margin, Excluding The Confidante Miami Beach (1)		30.9%		32.3%		28.3%		30.7%


Total revenues	$	247,481	$	276,112	$	464,647	$	519,555
Non-hotel revenues (2)		—		(18)		—		(36)
Total Actual Hotel Revenues		247,481		276,094		464,647		519,519
Prior ownership hotel revenues (3)		4,200		12,609		17,737		27,314
Sold hotel revenues (4)		—		(33,522)		—		(51,562)
Comparable Hotel Revenues		251,681		255,181		482,384		495,271
The Confidante Miami Beach revenues (5)		(132)		(8,705)		(4,147)		(23,286)
Comparable Hotel Revenues, Excluding The Confidante Miami Beach	$	251,549	$	246,476	$	478,237	$	471,985


Net income	$	26,142	$	43,078	$	39,177	$	64,165
Non-hotel revenues (2)		—		(18)		—		(36)
Non-hotel operating expenses, net (6)		(296)		(275)		(574)		(625)
Property-level adjustments (7)		661		180		(583)		362
Corporate overhead		8,168		8,396		15,686		16,864
Depreciation and amortization		31,112		32,397		60,152		64,739
Interest and other income		(3,503)		(4,639)		(8,956)		(5,180)
Interest expense		12,693		9,223		23,703		23,017
Gain on sale of assets, net		—		—		(457)		—
Gain on extinguishment of debt		(38)		(12)		(59)		(9,921)
Income tax provision (benefit), net		255		803		(600)		1,161
Actual Hotel Adjusted EBITDAre		75,194		89,133		127,489		154,546
Prior ownership hotel Adjusted EBITDAre (3)		2,128		4,681		7,232		10,920
Sold hotel Adjusted EBITDAre (4)		—		(12,675)		—		(13,678)
Comparable Hotel Adjusted EBITDAre		77,322		81,139		134,721		151,788
The Confidante Miami Beach Adjusted EBITDAre (5)		483		(1,420)		721		(7,087)
Comparable Hotel Adjusted EBITDAre, Excluding The Confidante Miami Beach	$	77,805	$	79,719	$	135,442	$	144,701

*Footnotes on following page 12

(1)	Comparable Hotel Adjusted EBITDAre Margin is calculated as Comparable Hotel Adjusted EBITDAre divided by Comparable Hotel Revenues. Comparable Hotel Adjusted EBITDAre Margin, Excluding The Confidante Miami Beach is calculated as Comparable Hotel Adjusted EBITDAre, Excluding The Confidante Miami Beach divided by Comparable Hotel Revenues, Excluding The Confidante Miami Beach.
(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 include results for the Hyatt Regency San Antonio Riverwalk prior to the Company’s acquisition of the hotel in April 2024. The Company obtained prior ownership information from the previous owner of the Hyatt Regency San Antonio Riverwalk 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.
---	---
(4)	Sold hotel revenues and Adjusted EBITDAre include results for the Boston Park Plaza, sold in October 2023.
---	---
(5)	The Confidante Miami Beach is undergoing a comprehensive renovation and conversion to Andaz Miami Beach and results are not comparable to prior periods.
---	---
(6)	Non-hotel operating expenses, net include the amortization of hotel real estate-related right-of-use assets and obligations. Non-hotel operating expenses, net for the first six months of 2023 also include a prior year property tax credit related to a sold hotel.
---	---
(7)	Property-level adjustments for the second quarter and first six months of 2024 include $0.1 million and $0.2 million, respectively, in taxes assessed on commercial rents at the Hyatt Regency San Francisco, and for both the second quarter and first six months of 2024, property-level adjustments include $0.6 million in pre-opening costs at The Confidante Miami Beach. Property-level adjustments for the first six months of 2024 also include a $1.3 million COVID-19-related relief grant received at the Marriott Boston Long Wharf. Property-level adjustments for the second quarter and first six months of 2023 include $0.2 million and $0.4 million, respectively, in taxes assessed on commercial rents at the Hyatt Regency San Francisco.
---	---

Exhibit 99.2


<br><br><br><br>Supplemental Financial Information<br><br>For the quarter ended June 30, 2024<br><br>August 7, 2024<br><br>

Supplemental Financial Information August 7, 2024

Table of Contents


Corporate Profile And Disclosures Regarding Non-GAAP Financial Measures								2
Comparable Corporate Financial Information								6
Capitalization								12
Property-Level Data And Operating Statistics								15
Property-Level Revenues, Adjusted EBITDAre & Adjusted EBITDAre Margins								20

Supplemental Financial Information August 7, 2024

CORPORATE PROFILE AND DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES


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

Supplemental Financial Information August 7, 2024

About Sunstone

Sunstone Hotel Investors, Inc. (the “Company,” “we,” and “our”) (NYSE: SHO) is a lodging real estate investment trust (“REIT”) that as of August 7, 2024 owns 15 hotels comprised of 7,255 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 August 7, 2024

Non-GAAP Financial Measures

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 the Nareit 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.


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

Supplemental Financial Information August 7, 2024

●	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; pre-opening costs associated with extensive renovation projects such as the work being performed at The Confidante Miami Beach; 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 August 7, 2024

COMPARABLE CORPORATE FINANCIAL INFORMATION


COMPARABLE CORPORATE FINANCIAL INFORMATION			Page 6

Supplemental Financial Information August 7, 2024

Comparable Consolidated Statements of Operations

Q2 2024 – Q3 2023, Trailing 12 Months


	Quarter Ended (1)								Trailing 12 Months (1)
(Unaudited and in thousands, except per share data)	June 30,		March 31,		December 31,		September 30,		Ended
	2024		2024		2023		2023		June 30, 2024
Revenues
Room	$	153,790	$	144,437	$	135,551	$	141,504	$	575,282
Food and beverage		72,552		64,989		64,914		59,412		261,867
Other operating		25,339		21,277		21,196		23,894		91,706
Total revenues		251,681		230,703		221,661		224,810		928,855

Operating Expenses
Room		37,922		37,518		35,298		35,661		146,399
Food and beverage		48,312		46,368		45,952		44,564		185,196
Other expenses		88,490		87,896		84,965		86,763		348,114
Corporate overhead		8,168		7,518		7,421		7,127		30,234
Depreciation and amortization		31,112		31,063		31,158		31,157		124,490
Total operating expenses		214,004		210,363		204,794		205,272		834,433

Interest and other income		3,503		5,453		4,137		1,218		14,311
Interest expense		(12,693)		(11,010)		(16,768)		(11,894)		(52,365)
Income before income taxes		28,487		14,783		4,236		8,862		56,368
Income tax (provision) benefit, net		(255)		(93)		863		(602)		(87)
Net income	$	28,232	$	14,690	$	5,099	$	8,260	$	56,281

Comparable Hotel Adjusted EBITDAre (2)	$	77,322	$	57,399	$	55,578	$	57,634	$	247,933

Comparable Adjusted EBITDAre (3)	$	75,651	$	59,615	$	54,951	$	54,411	$	244,628

Comparable Adjusted FFO attributable to common stockholders (4)	$	58,754	$	42,622	$	39,255	$	37,049	$	177,680

Comparable Adjusted FFO attributable to common stockholders per diluted share (4)	$	0.29	$	0.21	$	0.19	$	0.18	$	0.88

*Footnotes on page 8


COMPARABLE CORPORATE FINANCIAL INFORMATION			Page 7

Supplemental Financial Information August 7, 2024

Comparable Consolidated Statements of Operations

Footnotes

(1)	Includes results for all 15 hotels owned by the Company as of June 30, 2024. Also includes prior ownership results for the Hyatt Regency San Antonio Riverwalk acquired by the Company in April 2024, adjusted for the Company's pro forma depreciation expense. The Company obtained prior ownership information from the previous owner of the Hyatt Regency San Antonio Riverwalk 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. Excludes results for the Boston Park Plaza sold in October 2023. Also excludes the gain on sale of assets, net, extinguishment of debt, and income tax related to hotels either sold or disposed of in prior years.
(2)	Comparable Hotel Adjusted EBITDAre reconciliation for the second quarter of 2024 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 August 7, 2024. Comparable Hotel Adjusted EBITDAre presented for the trailing 12 months ended June 30, 2024 includes all hotels owned by the Company as of June 30, 2024.
---	---
(3)	Comparable Adjusted EBITDAre reconciliation for the second quarter of 2024 can be found in the following pages and reflect the adjustments noted in Footnote 1 above.
---	---
(4)	Comparable Adjusted FFO attributable to common stockholders and Comparable Adjusted FFO attributable to common stockholders per diluted share reconciliations for the second quarter of 2024 can be found in the following pages and reflect the adjustments noted in Footnote 1 above, along with repurchases of the Company's common stock totaling 0.4 million shares in the second quarter of 2024 and 1.6 million and 2.1 million shares in the third and fourth quarters of 2023, respectively.
---	---


COMPARABLE CORPORATE FINANCIAL INFORMATION			Page 8

Supplemental Financial Information August 7, 2024

Comparable Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre

Q2 2024 – Q3 2023, Trailing 12 Months


	Quarter Ended								Trailing 12 Months
	June 30,		March 31,		December 31,		September 30,		Ended
(In thousands)	2024		2024		2023		2023		June 30, 2024

Net income	$	26,142	$	13,035	$	126,985	$	15,558	$	181,720
Depreciation and amortization		31,112		29,040		29,135		33,188		122,475
Interest expense		12,693		11,010		16,768		11,894		52,365
Income tax provision (benefit), net		255		(855)		2,799		602		2,801
Gain on sale of assets, net		—		(457)		(123,820)		—		(124,277)
EBITDAre		70,202		51,773		51,867		61,242		235,084

Amortization of deferred stock compensation		3,181		2,770		2,512		2,511		10,974
Amortization of right-of-use assets and obligations		(107)		(11)		(20)		(13)		(151)
Amortization of contract intangibles, net		—		—		—		(19)		(19)
Gain on extinguishment of debt		(38)		(21)		(8)		(9)		(76)
Gain on insurance recoveries		(314)		—		—		—		(314)
Pre-opening costs		599		—		—		—		599
Property-level severance		—		—		297		—		297
Adjustments to EBITDAre, net		3,321		2,738		2,781		2,470		11,310

Adjusted EBITDAre		73,523		54,511		54,648		63,712		246,394
Sold hotel Adjusted EBITDAre (1)		—		—		(5,420)		(12,926)		(18,346)
Acquisition hotel Adjusted EBITDAre (2)		2,128		5,104		5,723		3,625		16,580

Comparable Adjusted EBITDAre	$	75,651	$	59,615	$	54,951	$	54,411	$	244,628

*Footnotes on page 11


COMPARABLE CORPORATE FINANCIAL INFORMATION			Page 9

Supplemental Financial Information August 7, 2024

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

Q2 2024– Q3 2023, Trailing 12 Months


	Quarter Ended								Trailing 12 Months
	June 30,		March 31,		December 31,		September 30,		Ended
(In thousands, except per share data)	2024		2024		2023		2023		June 30, 2024

Net income	$	26,142	$	13,035	$	126,985	$	15,558	$	181,720
Preferred stock dividends		(3,683)		(3,683)		(3,226)		(3,226)		(13,818)
Real estate depreciation and amortization		30,771		28,755		28,979		33,025		121,530
Gain on sale of assets, net		—		(457)		(123,820)		—		(124,277)
FFO attributable to common stockholders		53,230		37,650		28,918		45,357		165,155

Amortization of deferred stock compensation		3,181		2,770		2,512		2,511		10,974
Real estate amortization of right-of-use assets and obligations		(130)		(122)		(134)		(124)		(510)
Amortization of contract intangibles, net		287		231		105		84		707
Noncash interest on derivatives, net		(189)		(2,042)		3,600		(1,469)		(100)
Gain on extinguishment of debt		(38)		(21)		(8)		(9)		(76)
Gain on insurance recoveries		(314)		—		—		—		(314)
Pre-opening costs		599		—		—		—		599
Property-level severance		—		—		297		—		297
Income tax related to hotel disposition		—		(948)		3,662		—		2,714
Adjustments to FFO attributable to common stockholders, net		3,396		(132)		10,034		993		14,291

Adjusted FFO attributable to common stockholders		56,626		37,518		38,952		46,350		179,446
Sold hotel Adjusted FFO (1)		—		—		(5,420)		(12,926)		(18,346)
Acquisition hotel Adjusted FFO (2)		2,128		5,104		5,723		3,625		16,580

Comparable Adjusted FFO attributable to common stockholders	$	58,754	$	42,622	$	39,255	$	37,049	$	177,680

Comparable Adjusted FFO attributable to common stockholders per diluted share	$	0.29	$	0.21	$	0.19	$	0.18	$	0.88

Basic weighted average shares outstanding		202,758		202,631		203,612		205,570		203,643
Shares associated with unvested restricted stock awards		932		665		613		411		655
Diluted weighted average shares outstanding		203,690		203,296		204,225		205,981		204,298
Equity transactions (3)		(323)		(359)		(1,523)		(3,482)		(1,422)
Comparable diluted weighted average shares outstanding		203,367		202,937		202,702		202,499		202,876

*Footnotes on page 11


COMPARABLE CORPORATE FINANCIAL INFORMATION			Page 10

Supplemental Financial Information August 7, 2024

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

FFO and Adjusted FFO Attributable to Common Stockholders

Q2 2024 – Q3 2023, Trailing 12 Months Footnotes

(1)	Sold hotel Adjusted EBITDAre and Adjusted FFO include results for the Boston Park Plaza sold in October 2023.
(2)	Acquisition hotel Adjusted EBITDAre and Adjusted FFO include prior ownership results for the Hyatt Regency San Antonio Riverwalk acquired by the Company in April 2024.
---	---
(3)	Equity transactions represent repurchases of the Company’s common stock totaling 0.4 million in the second quarter of 2024 and 1.6 million and 2.1 million shares in the third and fourth quarters of 2023, respectively.
---	---


COMPARABLE CORPORATE FINANCIAL INFORMATION			Page 11


	Supplemental Financial Information August 7, 2024

CAPITALIZATION


CAPITALIZATION			Page 12

Supplemental Financial Information August 7, 2024

Comparative Capitalization Q2 2024 – Q2 2023


	June 30,			March 31,			December 31,			September 30,			June 30,
(In thousands, except per share data)	2024		****	2024		****	2023		****	2023		****	2023

Common Share Price & Dividends
At the end of the quarter	$	10.46		$	11.14		$	10.73		$	9.35		$	10.12
High during quarter ended	$	11.09		$	11.38		$	11.05		$	10.50		$	10.79
Low during quarter ended	$	9.96		$	10.42		$	9.04		$	8.67		$	9.39
Common dividends per share	$	0.09		$	0.07		$	0.13		$	0.07		$	0.05

Common Shares & Units
Common shares outstanding		203,390			203,674			203,480			205,623			207,185
Units outstanding		—			—			—			—			—
Total common shares and units outstanding		203,390			203,674			203,480			205,623			207,185

Capitalization ****
Market value of common equity	$	2,127,464		$	2,268,933		$	2,183,336		$	1,922,578		$	2,096,709
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		817,978			818,512			819,050			819,582			820,100
Total capitalization	$	3,226,692		$	3,368,695		$	3,283,636		$	3,023,410		$	3,198,059

Total debt to total capitalization		25.4	%		24.3	%		24.9	%		27.1	%		25.6	%
Total debt and preferred equity to total capitalization		34.1	%		32.6	%		33.5	%		36.4	%		34.4	%


CAPITALIZATION			Page 13

Supplemental Financial Information August 7, 2024

Debt Summary Schedule


(In thousands)				Interest Rate /		Maturity			June 30, 2024
Debt	****	Collateral	****	Spread	****	Date (1)			Balance

Secured Mortgage Debt		JW Marriott New Orleans		4.15%		12/11/2024		$	72,978
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		5.27%		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		6.78%		01/25/2028			175,000

Total Debt								$	817,978

Preferred Stock
Series G cumulative redeemable preferred (4)				1.621%		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						51.1	%		63.6	%
% Floating Rate Debt						48.9	%		36.4	%
Average Interest Rate						5.80	%		5.57	%
Weighted Average Maturity of Debt						2.5 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 2.3 years to 2.5 years.
(2)	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. The Company did not achieve its 2023 sustainability performance metric as specified in the Second Amended Credit Agreement, resulting in the pricing grid returning to its range of 135 to 220 basis points in May 2024, an increase of 0.02% from the previous year. The pricing grid is evaluated annually and is subject to the Company's 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 had an initial dividend rate equal to the Montage Healdsburg's annual net operating income yield on the Company's total investment in the resort, resulting in cash dividends of $0.030365 per share declared for the last six months of 2023. During the first half of 2024, the dividend rate increased 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, resulting in cash dividends of $0.375 per share declared for the first six months of 2024. The total dividends declared during the last twelve months equate to an annual yield of 1.621%. In the second half of 2024, the dividend rate is expected to increase to the greater of 4.5% 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 14

Supplemental Financial Information August 7, 2024

PROPERTY-LEVEL DATA AND OPERATING STATISTICS


PROPERTY-LEVEL DATA AND OPERATING STATISTICS			Page 15

Supplemental Financial Information August 7, 2024

Hotel Information as of August 7, 2024


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

1	Hilton San Diego Bayfront (1) (2)		California		Hilton		1,190		16%		Leasehold		2011 / 2022
2	Hyatt Regency San Francisco		California		Hyatt		821		11%		Fee Simple		2013
3	The Westin Washington, DC Downtown		Washington DC		Marriott		807		11%		Fee Simple		2005
4	Renaissance Orlando at SeaWorld®		Florida		Marriott		781		11%		Fee Simple		2005
5	Hyatt Regency San Antonio Riverwalk		Texas		Hyatt		630		9%		Fee Simple		2024
6	Wailea Beach Resort		Hawaii		Marriott		547		8%		Fee Simple		2014
7	JW Marriott New Orleans (3)		Louisiana		Marriott		501		7%		Fee Simple		2011
8	Marriott Boston Long Wharf		Massachusetts		Marriott		415		6%		Fee Simple		2007
9	Marriott Long Beach Downtown		California		Marriott		376		5%		Fee Simple		2005
10	The Confidante Miami Beach		Florida		Hyatt		287		4%		Fee Simple		2022
11	The Bidwell Marriott Portland		Oregon		Marriott		258		4%		Fee Simple		2000
12	Hilton New Orleans St. Charles		Louisiana		Hilton		252		3%		Fee Simple		2013
13	Oceans Edge Resort & Marina		Florida		Independent		175		2%		Fee Simple		2017
14	Montage Healdsburg (4)		California		Montage		130		2%		Fee Simple		2021
15	Four Seasons Resort Napa Valley (4)		California		Four Seasons		85		1%		Fee Simple		2021

	Total Portfolio						7,255		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 excludes rooms provided by owners of the separately owned private residences at each resort who may periodically elect to participate in the applicable resort’s residential rental program.
---	---


PROPERTY-LEVEL DATA AND OPERATING STATISTICS			Page 16

Supplemental Financial Information August 7, 2024

Property-Level Operating Statistics

ADR, Occupancy, RevPAR and Total RevPAR (TRevPAR)

Q2 2024/2023


	ADR					Occupancy						RevPAR					TRevPAR
Hotels sorted by number of rooms	For the Three Months Ended June 30,					For the Three Months Ended June 30,					For the Three Months Ended June 30,						For the Three Months Ended June 30,
	2024		****	2023	2024 vs.<br><br>2023	2024	****	2023	2024 vs.<br><br>2023		2024		****	2023		2024 vs.<br><br>2023	2024		2023		2024 vs. 2023
Hilton San Diego Bayfront	$	282	$	277	1.8%	86.7%		85.7%	100	bps	$	244		$	237	3.0%	$	437	$	435	0.6%
Hyatt Regency San Francisco		284		291	(2.4)%	76.7%		72.9%	380	bps		218			212	2.7%		290		317	(8.4)%
The Westin Washington, DC Downtown (1)		319		292	9.3%	76.8%		63.1%	1,370	bps		245			184	33.0%		386		272	41.9%
Renaissance Orlando at SeaWorld®		195		195	0.3%	67.8%		78.9%	(1,110)	bps		132			154	(13.8)%		300		345	(12.8)%
Hyatt Regency San Antonio Riverwalk		204		203	0.8%	76.7%		69.9%	680	bps		157			142	10.6%		264		220	20.2%
Wailea Beach Resort		668		682	(2.2)%	71.4%		75.2%	(380)	bps		477			513	(7.1)%		754		783	(3.6)%
JW Marriott New Orleans		249		258	(3.5)%	72.5%		75.7%	(320)	bps		181			195	(7.6)%		257		263	(2.4)%
Marriott Boston Long Wharf		406		405	0.1%	86.0%		79.7%	630	bps		349			323	8.0%		490		448	9.3%
Marriott Long Beach Downtown (1)		235		229	2.7%	49.5%		79.6%	(3,010)	bps		116			182	(36.1)%		158		233	(31.9)%
The Bidwell Marriott Portland		155		182	(14.6)%	70.6%		61.1%	950	bps		110			111	(1.3)%		150		153	(2.4)%
Hilton New Orleans St. Charles		180		188	(4.0)%	72.4%		77.5%	(510)	bps		131			145	(10.3)%		152		192	(21.1)%
Oceans Edge Resort & Marina		306		362	(15.4)%	82.2%		78.5%	370	bps		252			284	(11.5)%		438		466	(6.0)%
Montage Healdsburg		1,130		1,145	(1.2)%	59.2%		62.1%	(290)	bps		669			711	(5.9)%		1,275		1,296	(1.6)%
Four Seasons Resort Napa Valley		1,431		1,640	(12.8)%	62.6%		49.6%	1,300	bps		896			813	10.1%		1,715		1,398	22.7%

Comparable Portfolio, Excluding Renovation Hotel (2)		323		322	0.3%	75.0%		74.9%	10	bps		242			241	0.4%		396		388	2.0%

Add: Renovation Hotel (1)
The Confidante Miami Beach		—		264	(100.0)%	0.0%		63.2%	(6,320)	bps		—			167	(100.0)%		5		282	(98.2)%

Comparable Portfolio (3)	$	323	$	319	1.0%	72.1%		74.3%	(220)	bps	$	233		$	237	(2.0)%	$	380	$	383	(0.8)%

*Footnotes on page 19


PROPERTY-LEVEL DATA AND OPERATING STATISTICS			Page 17

<br><br>
	Supplemental Financial Information August 7, 2024

Property-Level Operating Statistics

ADR, Occupancy, RevPAR and Total RevPAR (TRevPAR)

Q2 YTD 2024/2023


	ADR					Occupancy						RevPAR					TRevPAR
Hotels sorted by number of rooms	For the Six Months Ended June 30,					For the Six Months Ended June 30,					For the Six Months Ended June 30,						For the Six Months Ended June 30,
	2024		****	2023	2024 vs.<br><br>2023	2024	****	2023	2024 vs.<br><br>2023		2024		****	2023		2024 vs.<br><br>2023	2024		2023		****	2024 vs.<br><br>2023
Hilton San Diego Bayfront	$	286	$	281	1.7%	84.2%		84.3%	(10)	bps	$	241		$	237	1.6%	$	433	$	433		(0.2)%
Hyatt Regency San Francisco		303		307	(1.2)%	71.2%		69.5%	170	bps		216			213	1.3%		292		310		(5.9)%
The Westin Washington, DC Downtown (1)		294		272	8.1%	71.9%		55.4%	1,650	bps		211			151	40.3%		340		219		55.0%
Renaissance Orlando at SeaWorld®		214		208	2.9%	74.4%		81.1%	(670)	bps		159			169	(5.6)%		348		376		(7.3)%
Hyatt Regency San Antonio Riverwalk		206		207	(0.4)%	74.4%		72.4%	200	bps		153			150	2.3%		250		240		4.5%
Wailea Beach Resort		683		711	(3.9)%	76.2%		77.4%	(120)	bps		520			550	(5.4)%		780		817		(4.5)%
JW Marriott New Orleans		260		261	(0.4)%	70.4%		74.2%	(380)	bps		183			194	(5.5)%		255		265		(3.9)%
Marriott Boston Long Wharf		353		356	(0.7)%	76.8%		69.4%	740	bps		271			247	9.9%		388		349		11.0%
Marriott Long Beach Downtown (1)		231		234	(1.1)%	41.1%		76.9%	(3,580)	bps		95			180	(47.1)%		130		234		(44.8)%
The Bidwell Marriott Portland		150		172	(12.9)%	64.5%		55.9%	860	bps		97			96	0.5%		135		133		1.4%
Hilton New Orleans St. Charles		190		197	(3.5)%	76.2%		76.1%	10	bps		144			150	(3.4)%		168		184		(8.5)%
Oceans Edge Resort & Marina		363		416	(12.8)%	81.9%		78.6%	330	bps		297			327	(9.2)%		476		499		(4.6)%
Montage Healdsburg		1,030		1,062	(3.0)%	48.5%		52.6%	(410)	bps		500			559	(10.5)%		957		1,008		(5.1)%
Four Seasons Resort Napa Valley		1,305		1,539	(15.2)%	48.3%		40.0%	830	bps		630			615	2.4%		1,233		1,106		11.5%

Comparable Portfolio, Excluding Renovation Hotel (2)		319		321	(0.4)%	72.7%		72.5%	20	bps		232			233	(0.1)%		376		374		0.7%

Add: Renovation Hotel (1)
The Confidante Miami Beach		269		322	(16.3)%	22.3%		73.5%	(5,120)	bps		60			237	(74.6)%		73		380		(80.8)%

Comparable Portfolio (3)	$	319	$	321	(0.6)%	70.5%		72.6%	(210)	bps	$	225		$	233	(3.5)%	$	363	$	374		(2.9)%

*Footnotes on page 19


PROPERTY-LEVEL DATA AND OPERATING STATISTICS			Page 18

Supplemental Financial Information August 7, 2024

Property-Level Operating Statistics

Q2 and YTD 2024/2023 Footnotes

(1)	Operating statistics for the second quarter and first six months of 2024 are impacted by renovation activity at Marriott Long Beach Downtown and The Confidante Miami Beach. In March 2024, operations at The Confidante Miami Beach were temporarily suspended to allow for extensive renovation work to be performed. The Company expects the resort to resume operations as Andaz Miami Beach in the fourth quarter of 2024. Operating statistics for the second quarter and first six months of 2023 are impacted by renovation activity at The Westin Washington, DC Downtown.
(2)	Comparable Portfolio, Excluding Renovation Hotel includes all hotels owned by the Company as of June 30, 2024, with the exception of The Confidante Miami Beach due to its renovation activity during the second quarter and first six months of 2024. Amounts included in this presentation for the Hyatt Regency San Antonio Riverwalk, acquired by the Company in April 2024, include both prior ownership results and the Company’s results. The Company obtained prior ownership information from the previous owner of the Hyatt Regency San Antonio Riverwalk 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)	Comparable Portfolio consists of all hotels owned by the Company as of June 30, 2024, and includes prior ownership information for the Hyatt Regency San Antonio Riverwalk as discussed in Note 2.
---	---


PROPERTY-LEVEL DATA AND OPERATING STATISTICS			Page 19

Supplemental Financial Information August 7, 2024

PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre &

ADJUSTED EBITDAre MARGINS


PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS			Page 20

Supplemental Financial Information August 7, 2024

Property-Level Revenues, Adjusted EBITDAre and Adjusted EBITDAre Margins

Q2 2024/2023


Hotels sorted by number of rooms	For the Three Months Ended June 30,
	2024								2023
(In thousands)							Hotel Adjusted								Hotel Adjusted		Hotel Adjusted
	Total			Hotel Adjusted			EBITDAre		Total			Hotel Adjusted			EBITDAre		EBITDAre
	Revenues		****	EBITDAre		****	Margins	****	Revenues		****	EBITDAre		****	Margins	****	Margin Change
Hilton San Diego Bayfront	$	47,328		$	14,971		31.6%		$	47,061		$	15,833		33.6%		(200)	bps
Hyatt Regency San Francisco		21,701			1,609		7.4%			23,693			4,749		20.0%		(1,260)	bps
The Westin Washington, DC Downtown (1)		28,340			11,506		40.6%			19,975			5,967		29.9%		1,070	bps
Renaissance Orlando at SeaWorld®		21,352			6,321		29.6%			24,497			8,328		34.0%		(440)	bps
Hyatt Regency San Antonio Riverwalk		15,152			6,743		44.5%			12,609			4,681		37.1%		740	bps
Wailea Beach Resort		37,544			13,548		36.1%			38,960			14,656		37.6%		(150)	bps
JW Marriott New Orleans		11,711			4,538		38.7%			11,993			5,270		43.9%		(520)	bps
Marriott Boston Long Wharf		18,498			7,948		43.0%			16,915			6,908		40.8%		220	bps
Marriott Long Beach Downtown (1)		5,421			(13)		(0.2)%			7,919			2,486		31.4%		(3,160)	bps
The Bidwell Marriott Portland		3,515			749		21.3%			3,599			876		24.3%		(300)	bps
Hilton New Orleans St. Charles		3,479			1,132		32.5%			4,413			1,981		44.9%		(1,240)	bps
Oceans Edge Resort & Marina		6,976			2,304		33.0%			7,424			2,789		37.6%		(460)	bps
Montage Healdsburg		15,709			4,177		26.6%			15,335			3,365		21.9%		470	bps
Four Seasons Resort Napa Valley		14,823			2,272		15.3%			12,083			1,830		15.1%		20	bps

Comparable Portfolio, Excluding Renovation Hotel (2)		251,549			77,805		30.9%			246,476			79,719		32.3%		(140)	bps

Add: Renovation Hotel (1)
The Confidante Miami Beach		132			(483)		(365.9)%			8,705			1,420		16.3%		(38,220)	bps

Comparable Portfolio (3)		251,681			77,322		30.7%			255,181			81,139		31.8%		(110)	bps

Less: Prior Ownership (4)
Hyatt Regency San Antonio Riverwalk		(4,200)			(2,128)		N/A			(12,609)			(4,681)		37.1%		N/A

Add: Sold Hotel (5)		—			—		N/A			33,522			12,675		37.8%		N/A

Actual Portfolio (6)	$	247,481		$	75,194		30.4%		$	276,094		$	89,133		32.3%		N/A

*Footnotes on page 23


PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS			Page 21

Supplemental Financial Information August 7, 2024

Property-Level Revenues, Adjusted EBITDAre and Adjusted EBITDAre Margins

Q2 YTD 2024/2023


Hotels sorted by number of rooms	For the Six Months Ended June 30,
	2024								2023
(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	$	93,716		$	29,285		31.2%		$	93,362		$	30,872		33.1%		(190)	bps
Hyatt Regency San Francisco		43,627			4,228		9.7%			46,096			8,423		18.3%		(860)	bps
The Westin Washington, DC Downtown (1)		49,923			16,191		32.4%			32,030			6,573		20.5%		1,190	bps
Renaissance Orlando at SeaWorld®		49,492			16,448		33.2%			53,120			19,421		36.6%		(340)	bps
Hyatt Regency San Antonio Riverwalk		28,689			11,847		41.3%			27,314			10,920		40.0%		130	bps
Wailea Beach Resort		77,677			29,104		37.5%			80,876			31,456		38.9%		(140)	bps
JW Marriott New Orleans		23,243			8,968		38.6%			24,046			10,745		44.7%		(610)	bps
Marriott Boston Long Wharf		29,277			9,630		32.9%			26,224			7,954		30.3%		260	bps
Marriott Long Beach Downtown (1)		8,842			(2,031)		(23.0)%			15,873			4,997		31.5%		(5,450)	bps
The Bidwell Marriott Portland		6,332			953		15.1%			6,212			1,044		16.8%		(170)	bps
Hilton New Orleans St. Charles		7,706			2,741		35.6%			8,373			3,502		41.8%		(620)	bps
Oceans Edge Resort & Marina		15,150			5,910		39.0%			15,801			6,767		42.8%		(380)	bps
Montage Healdsburg		23,252			2,598		11.2%			23,719			2,055		8.7%		250	bps
Four Seasons Resort Napa Valley		21,311			(430)		(2.0)%			18,939			(28)		(0.1)%		(190)	bps

Comparable Portfolio, Excluding Renovation Hotel (2)		478,237			135,442		28.3%			471,985			144,701		30.7%		(240)	bps

Add: Renovation Hotel (1)
The Confidante Miami Beach		4,147			(721)		(17.4)%			23,286			7,087		30.4%		(4,780)	bps

Comparable Portfolio (3)		482,384			134,721		27.9%			495,271			151,788		30.6%		(270)	bps

Less: Prior Ownership (4)
Hyatt Regency San Antonio Riverwalk		(17,737)			(7,232)		N/A			(27,314)			(10,920)		40.0%		N/A

Add: Sold Hotel (5)		—			—		N/A			51,562			13,678		26.5%		N/A

Actual Portfolio (6)	$	464,647		$	127,489		27.4%		$	519,519		$	154,546		29.7%		N/A

*Footnotes on page 23


PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS			Page 22

Supplemental Financial Information August 7, 2024

Property-Level Revenues, Adjusted EBITDAre and Adjusted EBITDAre Margins

Q2 and YTD 2024/2023 Footnotes

(1)	Hotel Adjusted EBITDAre for the second quarter and first six months of 2024 is impacted by renovation activity at Marriott Long Beach Downtown and The Confidante Miami Beach. In March 2024, operations at The Confidante Miami Beach were temporarily suspended to allow for extensive renovation work to be performed. The Company expects the resort to resume operations as Andaz Miami Beach in the fourth quarter of 2024. Adjusted EBITDAre for the second quarter and first six months of 2023 is impacted by renovation activity at The Westin Washington, DC Downtown.
(2)	Comparable Portfolio, Excluding Renovation Hotel includes all hotels owned by the Company as of June 30, 2024, with the exception of The Confidante Miami Beach due to its renovation activity during the second quarter and first six months of 2024. Amounts included in this presentation for the Hyatt Regency San Antonio Riverwalk, acquired by the Company in April 2024, include both prior ownership results and the Company's results. The Company obtained prior ownership information from the previous owner of the Hyatt Regency San Antonio Riverwalk 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)	Comparable Portfolio consists of all hotels owned by the Company as of June 30, 2024, and includes prior ownership information for the Hyatt Regency San Antonio Riverwalk as discussed in Note 2.
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(4)	Prior Ownership includes results for the Hyatt Regency San Antonio Riverwalk prior to the Company’s acquisition of the hotel in April 2024 as discussed in Note 2.
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(5)	Sold Hotel includes the Boston Park Plaza sold in October 2023.
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(6)	Actual Portfolio includes results for the 15 hotels owned by the Company during the second quarters and first six months of 2024 and 2023.
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PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS			Page 23