8-K

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): May 4, 2022

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)

​

​	​	​
200 Spectrum Center Drive , 21^st^ Floor Irvine , California		92618
(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 May 4, 2022, Sunstone Hotel Investors, Inc. (the “Company”) issued a press release regarding its financial results for the first quarter ended March 31, 2022. 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 May 4, 2022.
99.2	​	Supplemental Financial Information for the first quarter ended March 31, 2022.
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: May 4, 2022	​	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 FIRST QUARTER 2022

​

​

IRVINE, CA – May 4, 2022 – Sunstone Hotel Investors, Inc. (the “Company” or “Sunstone”) (NYSE: SHO), the owner of Long-Term Relevant Real Estate® in the lodging industry, today announced results for the first quarter ended March 31, 2022.

​

First Quarter 2022 Operational Results (as compared to First Quarter 2021):

​

●	Net Income (Loss): Net income was $15.1 million as compared to a net loss of $55.3 million.
●	12 Hotel Portfolio RevPAR: RevPAR at the comparable 12 hotels the Company owned during both 2022 and 2021 (the “12 Hotel Portfolio”), increased 207.7% to $148.65. The average daily rate was $279.95 and occupancy was 53.1%.
---	---
●	14 Hotel Portfolio RevPAR: RevPAR at the 14 hotels, which includes the 12 Hotel Portfolio, the Montage Healdsburg and the Four Seasons Resort Napa Valley (the “14 Hotel Portfolio”), was $159.76. The average daily rate was $301.44 and occupancy was 53.0%.
---	---
●	Adjusted EBITDAre**:** Adjusted EBITDAre, excluding noncontrolling interest increased 285.3% to $27.2 million.
---	---
●	Adjusted FFO: Adjusted FFO attributable to common stockholders per diluted share increased 166.7% to $0.08. Beginning with the quarter ended March 31, 2022, the Company’s calculation of Adjusted FFO attributable to common stockholders excludes the noncash amortization expense associated with deferred stock compensation. Adjusted FFO attributable to common stockholders for the prior period presented in this release has also been adjusted to exclude this expense. The per share impact of this change as compared to the Company’s prior presentation is $0.02 and $0.01 for the first quarters of 2022 and 2021, respectively.
---	---

​

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, “Despite getting off to a slow start due to the lingering impact of the Omicron variant, we saw significant demand acceleration as the first quarter progressed. The positive trends continued into April, and we anticipate that the second quarter will be another quarter of meaningful growth for our portfolio. While we expect continued strong demand at our resorts, we will now also benefit from increasing business volumes at our group-oriented and urban hotels which will combine to generate outsized year-over-year growth for our portfolio in 2022. March and April results at our group-oriented and urban hotels are encouraging, with the return of larger-scale group and corporate events driving higher occupancy and greater ancillary spend. This trend, which will not be uniform across all markets, is expected to continue as the recovery of these hotels progresses throughout 2022 and into 2023.”

​

Mr. Giglia continued, “During the quarter, we sold three hotels that had limited future growth potential and recycled a portion of the proceeds into accretive share repurchases at a substantial discount to NAV. We expect to continue to recycle capital and utilize a portion of our significant balance sheet capacity to grow our portfolio through the addition of Long-Term Relevant Real Estate in the coming quarters. The combination of increasing corporate business and group demand, the continued ramp-up of our two recent acquisitions and the ability to utilize our investment capacity to grow the portfolio, positions Sunstone to drive meaningful per share earnings and NAV growth as the year progresses.”

​ 1

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

​

​	​	​	​	​	​	​	​	​
​	Quarter Ended March 31,
​	2022		****	2021		****	Change
​	​	​	​	​	​	​	​	​
Net Income (Loss)	$	15.1	​	$	(55.3)	​	127.4	%
Income (Loss) Attributable to Common Stockholders per Diluted Share	$	0.05	​	$	(0.26)	​	119.2	%
​	​	​	​	​	​	​	​	​
12 Hotel Portfolio RevPAR	$	148.65	​	$	48.31	​	207.7	%
​	​	​	​	​	​	​	​	​
12 Hotel Portfolio Occupancy	​	53.1	%	​	23.4	%	2,970	bps
12 Hotel Portfolio ADR	$	279.95	​	$	206.44	​	35.6	%
​	​	​	​	​	​	​	​	​
2 Recently Acquired Hotels RevPAR (1)	$	521.62	​	​	N/A	​	N/A	​
​	​	​	​	​	​	​	​	​
2 Recently Acquired Hotels Occupancy (1)	​	47.4	%	​	N/A	​	N/A	​
2 Recently Acquired Hotels ADR (1)	$	1,100.47	​	​	N/A	​	N/A	​
​	​	​	​	​	​	​	​	​
12 Hotel Portfolio Adjusted EBITDAre Margin	​	25.0	%	​	(22.0)	%	4,700	bps
​	​	​	​	​	​	​	​	​
Adjusted EBITDAre, excluding noncontrolling interest	$	27.2	​	$	(14.7)	​	285.3	%
Adjusted FFO Attributable to Common Stockholders	$	16.4	​	$	(26.1)	​	162.8	%
Adjusted FFO Attributable to Common Stockholders per Diluted Share	$	0.08	​	$	(0.12)	​	166.7	%

​

(1)	The 2 Recently Acquired Hotels consist of the Montage Healdsburg and the Four Seasons Resort Napa Valley, acquired in April 2021 and December 2021, respectively. Both the Montage Healdsburg and the Four Seasons Resort Napa Valley are newly-developed hotels which opened on limited bases in December 2020 and October 2021, respectively, therefore, there is no prior year information.

​

First Quarter 2022 Highlights

​

●	Actively recycled capital through the accretive disposition of three Chicago hotels for a combined gross sale price of $197.0 million. The combined sale price represents a 10.8x multiple on 2019 Hotel Adjusted EBITDAre and a 7.7% cap rate on 2019 Hotel Net Operating Income.
●	Deployed a portion of the proceeds received from the disposition of the three Chicago hotels to repurchase $48.4 million of common stock (including $5.0 million purchased subsequent to the end of the quarter) at an average price of $11.16 per share. The average purchase price per share represents a substantial discount to consensus estimates of NAV and implies a highly attractive valuation multiple on the Company’s 2019 pro forma EBITDAre.
---	---
●	Elected to early terminate the covenant relief period related to the Company’s unsecured debt upon generating sufficient earnings for the quarter ended December 31, 2021 to satisfy the financial covenants stipulated in the 2020 and 2021 amendments to its unsecured debt agreements. By exiting the covenant relief period, the Company is no longer subject to additional restrictions on debt issuance and repayment, capital investment, share repurchases and dividend distributions.
---	---
●	Invested $30.3 million of capital into our portfolio which consisted primarily of additional progress on the renovation of the Renaissance Washington DC in preparation for its conversion to the Westin brand in 2023, and a rooms renovation at the Hyatt Regency San Francisco which will be completed later this year. These projects are expected to drive incremental growth upon completion and will further enhance the earnings potential and value of these well-located hotels.
---	---

​

Recent Developments

​

Stock Repurchase Program: During the first quarter of 2022, the Company repurchased 3,879,025 shares of its common stock at an average purchase price of $11.19 per share. In April 2022, the Company repurchased an additional 457,634 shares of its common stock at an average purchase price of $10.95 per share. Year to date, the Company has repurchased a total of 4,336,659 shares of its common stock at an average price per share of $11.16 for a total repurchase amount before expenses of $48.4 million, leaving $451.6 million of authorized capacity remaining under the Company’s stock repurchase program.

​

Hurricane Ida Damage Restoration: As previously announced, the Company’s JW Marriott New Orleans and Hilton New Orleans St. Charles were both impacted by Hurricane Ida in August 2021, which caused wind-driven damage, rain infiltration and water damage at the hotels. The storm impacted the two hotels to varying degrees with the bulk of the damage incurred at the Hilton New Orleans St. Charles. During the first quarter of 2022, the Company incurred Hurricane Ida-related restoration expenses of $1.4 million at the 2

Hilton New Orleans St. Charles and $0.1 million at the JW Marriott New Orleans. Through March 31, 2022, the Company has incurred total Hurricane Ida-related restoration expenses of $4.4 million at the Hilton New Orleans St. Charles and $1.4 million at the JW Marriott New Orleans. Though the property damage claim has not been finalized, the Company recognized an advance payment of $4.4 million from its insurers in the first quarter of 2022 for Hurricane Ida-related property expenses previously incurred. In addition, during the first quarter of 2022, the Company recognized an advance payment of $1.0 million from its insurers related to its ongoing business interruption claim at the Hilton New Orleans St. Charles. The Company expects that restoration work on the hotels will be completed by the third quarter of 2022 and that both hotels will remain in operation while the work is performed.

​

Capital Investments: The Company invested $30.3 million into its portfolio during the first quarter ended March 31, 2022. In 2022, the Company expects to invest approximately $130 million to $150 million.

​

Balance Sheet and Liquidity Update

​

In February 2022, the Company used a portion of the proceeds received from the disposition of the Hyatt Centric Chicago Magnificent Mile to repay $25.0 million of its unsecured Series A Senior Notes and $10.0 million of its unsecured Series B Senior Notes, resulting in remaining balances of $65.0 million and $105.0 million, respectively, as of March 31, 2022. As of March 31, 2022, the Company had $254.4 million of cash and cash equivalents, including restricted cash of $39.5 million, total assets of $3.0 billion, including $2.6 billion of net investments in hotel properties, total consolidated debt of $575.9 million and stockholders’ equity of $2.2 billion.

​

Operations Update

​

Operating statistics for the 14 Hotel Portfolio were as follows:

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	January			​	February			​	March			​	First Quarter			​	April
​	​	2022			​	2022			​	2022			​	2022			​	2022 (1)
RevPAR	​	$	107.00	​	​	$	159.80	​	​	$	212.07	​	​	$	159.76	​	​	$	241.22	​
Occupancy	​	​	37.9	%	​	​	53.4	%	​	​	67.6	%	​	​	53.0	%	​	​	75.3	%
Average Daily Rate	​	$	282.32	​	​	$	299.25	​	​	$	313.71	​	​	$	301.44	​	​	$	320.34	​

​

Operating statistics for the 12 Hotel Portfolio were as follows:

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	January			​	February			​	March			​	First Quarter			​	April
​	​	2022			​	2022			​	2022			​	2022			​	2022 (1)
RevPAR	​	$	98.51	​	​	$	149.35	​	​	$	198.33	​	​	$	148.65	​	​	$	224.94	​
Occupancy	​	​	37.9	%	​	​	53.6	%	​	​	67.9	%	​	​	53.1	%	​	​	75.7	%
Average Daily Rate	​	$	259.92	​	​	$	278.64	​	​	$	292.09	​	​	$	279.95	​	​	$	297.15	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	January			​	February			​	March			​	First Quarter			​	April
​	​	2019			​	2019			​	2019			​	2019			​	2019
RevPAR	​	$	180.87	​	​	$	211.24	​	​	$	230.36	​	​	$	207.32	​	​	$	232.22	​
Occupancy	​	​	74.7	%	​	​	81.8	%	​	​	87.5	%	​	​	81.3	%	​	​	88.6	%
Average Daily Rate	​	$	242.13	​	​	$	258.24	​	​	$	263.27	​	​	$	255.01	​	​	$	262.10	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Change 2022 vs. 2019
RevPAR	​	​	(45.5)	%	​	​	(29.3)	%	​	​	(13.9)	%	​	​	(28.3)	%	​	​	(3.1)	%
Occupancy	​	​	(3,680)	bps	​	​	(2,820)	bps	​	​	(1,960)	bps	​	​	(2,820)	bps	​	​	(1,290)	bps
Average Daily Rate	​	​	7.3	%	​	​	7.9	%	​	​	10.9	%	​	​	9.8	%	​	​	13.4	%

​

April 2022, 2021 and 2019 results for the 12 Hotel Portfolio include the following ($ in millions, except RevPAR and ADR):

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	April
​	2022 (1)			​	2021			​	2019			​	Change 2022 vs. 2021
12 Hotel Portfolio Room Revenue	$	48.5	​	​	$	19.1	​	​	$	49.8	​	​	153.5	%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
12 Hotel Portfolio RevPAR	$	224.94	​	​	$	88.80	​	​	$	232.22	​	​	153.3	%
12 Hotel Portfolio Occupancy	​	75.7	%	​	​	42.0	%	​	​	88.6	%	​	3,370	bps
12 Hotel Portfolio ADR	$	297.15	​	​	$	211.42	​	​	$	262.10	​	​	40.5	%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
(1)	April 2022 results are preliminary and may be adjusted during the Company’s month-end close process.
---	---

3

​

Due to continued uncertainty regarding the duration and extent of the COVID-19 pandemic, the Company cannot provide further assurances regarding the pandemic’s effect on the Company’s results.

​

Dividend Update

​

On May 3, 2022, the Company’s Board of Directors declared cash dividends of $0.442950 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 preferred stockholders. The dividends will be paid on July 15, 2022 to stockholders of record as of June 30, 2022.

​

The Company has suspended its quarterly common stock cash dividends. The resumption in quarterly common dividends will be determined by the Company’s Board of Directors after considering the Company’s obligations under its various financing agreements, projected taxable income, compliance with its debt covenants, 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.

Earnings Call

​

The Company will host a conference call to discuss first quarter 2022 financial results on May 5, 2022, 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.

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 has interests in 14 hotels comprised of 7,396 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 hotels considered to be Long-Term Relevant 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: the impact the COVID-19 pandemic has on the Company’s business and the economy, as well as the response of governments and the Company to the pandemic, and how quickly and successfully effective vaccines and therapies are distributed and administered; increased risks related to employee matters, including increased employment litigation and claims for severance or other benefits tied to termination or furloughs as a result of temporary hotel suspensions or reduced hotel operations due to COVID-19; general economic and business conditions, including a U.S. recession or increased inflation, trade conflicts and tariffs, regional or global economic slowdowns and any type of flu or disease-related pandemic that impacts travel or the ability to travel, including COVID-19; the need for business-related travel, including the increased use of business-related technology; rising hotel operating costs due to labor costs, workers’ compensation and health-care related costs, utility costs, property and liability insurance costs, unanticipated costs such as acts of nature and their consequences and other costs that may not be offset by increased room rates; the ground or airspace leases for two of the hotels the Company has interests in as of the date of this release; the need for renovations, repositionings and other capital expenditures for the Company’s hotels; the impact, including any delays, of renovations and repositionings on hotel operations; new hotel supply, or alternative lodging options such as timeshare, vacation rentals or sharing services such as Airbnb, in the Company’s markets, which could harm its occupancy levels and revenue at its hotels; competition from hotels not owned by the Company; relationships with, and the requirements, performance and reputation of, the managers of the Company’s hotels; relationships with, and the requirements and reputation of, the Company’s franchisors and hotel brands; the Company’s hotels may become impaired, or 4

its hotels which have previously become impaired may become further impaired in the future, which may adversely affect its financial condition and results of operations; competition for the acquisition of hotels, and the Company’s ability to complete acquisitions and dispositions; performance of hotels after they are acquired; changes in the Company’s business strategy or acquisition or disposition plans; the Company’s level of debt, including secured, unsecured, fixed and variable rate debt; financial and other covenants in the Company’s debt and preferred stock; the impact on the Company’s business of potential defaults by the Company on its debt agreements or leases; volatility in the capital markets and the effect on lodging demand or the Company’s ability to obtain capital on favorable terms or at all; the Company’s need to operate as a REIT and comply with other applicable laws and regulations, including new laws, interpretations or court decisions that may change the federal or state tax laws or the federal or state income tax consequences of the Company’s qualification as a REIT; potential adverse tax consequences in the event that the Company’s operating leases with its taxable REIT subsidiaries are not held to have been made on an arm’s-length basis; system security risks, data protection breaches, cyber-attacks and systems integration issues, including those impacting the Company’s suppliers, hotel managers or franchisors; other events beyond the Company’s control, including climate change, natural disasters, terrorist attacks or civil unrest; 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 5

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, 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.

​

●

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.

​

●	Acquisition costs: under GAAP, costs associated with acquisitions that meet the definition of a business are expensed in the year incurred. We exclude the effect of these costs because we believe they are not reflective of the ongoing performance of the Company or our hotels.

​

●

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; prior year property tax assessments or credits; 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 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, 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 is a finance lease, and, therefore, we include 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 current 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. 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 6

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.

​

Reconciliations of net income (loss) 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.

​

​

Property-Level Adjusted EBITDAre Reconciliation

Chicago Hotels

(In thousands)

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	Plus:		​	Equals:		​		​	Less:		​	Equals:
​	​	​	​		​	​	​	​	Depreciation &		​	​		Hotel Adjusted		​	​		​	Hotel Net
​	​	​	Total Revenues		​	Net Income		​	Other Adjustments		​	Hotel Adjusted EBITDAre		EBITDAre Margin		​	4.0% FF&E Reserve		​	Operating Income
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Full Year 2019		​	$	79,802	​	$	6,859	​	$	11,453	​	$	18,312	​	22.9%	​	$	(3,192)	​	$	15,120
2019 Year Ended EBITDAre Multiple / Cap Rate (1)		​	​	​	​	​	​	​	​	​	​	​	10.8x	​	​	​	​	​	​	​	7.7%

​

​

(1)	EBITDAre Multiple is calculated as gross sale price divided by Hotel Adjusted EBITDAre. Cap Rate is calculated as Hotel Net Operating Income divided by gross sale price.

​

​

​

​

​

​

​

​

​

​ 7

Sunstone Hotel Investors, Inc.

Consolidated Balance Sheets

(In thousands, except share and per share data)

​

​

​	​	​	​	​	​	​
​	​	March 31,		​	December 31,
		2022		****	2021
​	​	(unaudited)		​	​
Assets	​	​	​	​	​	​
Current assets:	​	​	​	​	​	​
Cash and cash equivalents	​	$	214,905	​	$	120,483
Restricted cash	​	​	39,484	​	​	42,234
Accounts receivable, net	​	​	35,346	​	​	28,733
Prepaid expenses and other current assets	​	​	18,137	​	​	14,338
Assets held for sale, net	​	​	—	​	​	76,308
Total current assets	​	​	307,872	​	​	282,096
​	​	​	​	​	​	​
Investment in hotel properties, net	​	​	2,613,428	​	​	2,720,016
Operating lease right-of-use assets, net	​	​	19,879	​	​	23,161
Deferred financing costs, net	​	​	2,080	​	​	2,580
Other assets, net	​	​	9,609	​	​	13,196
​	​	​	​	​	​	​
Total assets	​	$	2,952,868	​	$	3,041,049
​	​	​	​	​	​	​
Liabilities and Equity	​	​	​	​	​	​
Current liabilities:	​	​	​	​	​	​
Accounts payable and accrued expenses	​	$	55,902	​	$	47,701
Accrued payroll and employee benefits	​	​	14,800	​	​	19,753
Dividends payable	​	​	3,773	​	​	3,513
Other current liabilities	​	​	65,671	​	​	58,884
Current portion of notes payable, net	​	​	109,741	​	​	20,694
Liabilities of assets held for sale	​	​	—	​	​	25,213
Total current liabilities	​	​	249,887	​	​	175,758
​	​	​	​	​	​	​
Notes payable, less current portion, net	​	​	464,601	​	​	588,741
Operating lease obligations, less current portion	​	​	21,228	​	​	25,120
Other liabilities	​	​	9,143	​	​	11,656
Total liabilities	​	​	744,859	​	​	801,275
​	​	​	​	​	​	​
Commitments and contingencies	​	​	​	​	​	​
​	​	​	​	​	​	​
Equity:	​	​	​	​	​	​
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 March 31, 2022 and December 31, 2021, 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 March 31, 2022 and December 31, 2021, 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 March 31, 2022 and December 31, 2021, stated at liquidation preference of $25.00 per share	​	​	100,000	​	​	100,000
Common stock, $0.01 par value, 500,000,000 shares authorized, 215,667,937 shares issued and outstanding at March 31, 2022 and 219,333,783 shares issued and outstanding at December 31, 2021	​	​	2,157	​	​	2,193
Additional paid in capital	​	​	2,588,405	​	​	2,631,484
Retained earnings	​	​	962,053	​	​	948,064
Cumulative dividends and distributions	​	​	(1,667,797)	​	​	(1,664,024)
Total stockholders' equity	​	​	2,166,068	​	​	2,198,967
Noncontrolling interest in consolidated joint venture	​	​	41,941	​	​	40,807
Total equity	​	​	2,208,009	​	​	2,239,774
​	​	​	​	​	​	​
Total liabilities and equity	​	$	2,952,868	​	$	3,041,049

​

​

​

​

​ 8

Sunstone Hotel Investors, Inc.

Unaudited Consolidated Statements of Operations

(In thousands, except per share data)

​

​

​	​	​	​	​	​	​
​	​	Quarter Ended March 31,
​	****	2022			2021
​	​	​
Revenues	​	​	​	​	​	​
Room	​	$	108,772	​	$	34,219
Food and beverage	​	​	39,583	​	​	4,971
Other operating	​	​	23,960	​	​	11,443
Total revenues	​	​	172,315	​	​	50,633
Operating expenses	​	​	​	​	​	​
Room	​	​	30,461	​	​	11,640
Food and beverage	​	​	32,319	​	​	5,979
Other operating	​	​	5,436	​	​	1,805
Advertising and promotion	​	​	10,474	​	​	4,875
Repairs and maintenance	​	​	9,714	​	​	5,545
Utilities	​	​	5,705	​	​	4,151
Franchise costs	​	​	3,004	​	​	991
Property tax, ground lease and insurance	​	​	15,991	​	​	14,661
Other property-level expenses	​	​	23,910	​	​	10,477
Corporate overhead	​	​	10,714	​	​	7,177
Depreciation and amortization	​	​	31,360	​	​	30,770
Total operating expenses	​	​	179,088	​	​	98,071
Interest and other income (loss)	​	​	4,380	​	​	(379)
Interest expense	​	​	(5,081)	​	​	(7,649)
Gain on sale of assets	​	​	22,946	​	​	—
(Loss) gain on extinguishment of debt	​	​	(213)	​	​	222
Income (loss) before income taxes	​	​	15,259	​	​	(55,244)
Income tax provision	​	​	(136)	​	​	(43)
Net income (loss)	​	​	15,123	​	​	(55,287)
(Income) loss from consolidated joint venture attributable to noncontrolling interest	​	​	(1,134)	​	​	1,975
Preferred stock dividends	​	​	(3,773)	​	​	(3,207)
Income (loss) attributable to common stockholders	​	$	10,216	​	$	(56,519)
​	​	​	​	​	​	​
Basic and diluted per share amounts:	​	​	​	​	​	​
Basic and diluted income (loss) attributable to common stockholders per common share	​	$	0.05	​	$	(0.26)
​	​	​	​	​	​	​
Basic and diluted weighted average common shares outstanding	​	​	217,271	​	​	214,438

​

​ 9

Sunstone Hotel Investors, Inc.

Reconciliation of Net Income (Loss) to Non-GAAP Financial Measures

(Unaudited and in thousands)

​

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

​

​

​	​	​	​	​	​	​
​	​	Quarter Ended March 31,
​		2022		****	2021
​	​	​	​	​	​	​
Net income (loss)	​	$	15,123	​	$	(55,287)
Operations held for investment:	​	​	​	​	​	​
Depreciation and amortization	​	​	31,360	​	​	30,770
Interest expense	​	​	5,081	​	​	7,649
Income tax provision	​	​	136	​	​	43
(Gain) loss on sale of assets	​	​	(22,946)	​	​	70
EBITDAre	​	​	28,754	​	​	(16,755)
​	​	​	​	​	​	​
Operations held for investment:	​	​	​	​	​	​
Amortization of deferred stock compensation	​	​	3,578	​	​	2,752
Amortization of right-of-use assets and obligations	​	​	(346)	​	​	(331)
Amortization of contract intangibles, net	​	​	(6)	​	​	—
Finance lease obligation interest - cash ground rent	​	​	(117)	​	​	(351)
Loss (gain) on extinguishment of debt	​	​	213	​	​	(222)
Prior year property tax adjustments, net	​	​	—	​	​	(827)
Hurricane-related insurance proceeds net of losses	​	​	(2,893)	​	​	—
Noncontrolling interest:	​	​	​	​	​	​
(Income) loss from consolidated joint venture attributable to noncontrolling interest	​	​	(1,134)	​	​	1,975
Depreciation and amortization	​	​	(790)	​	​	(810)
Interest expense	​	​	(168)	​	​	(161)
Amortization of right-of-use asset and obligation	​	​	72	​	​	72
Adjustments to EBITDAre**, net**	​	​	(1,591)	​	​	2,097
​	​	​	​	​	​	​
Adjusted EBITDAre**, excluding noncontrolling interest**	​	$	27,163	​	$	(14,658)

​

​

​

​

​

​

​

​

​ 10

Sunstone Hotel Investors, Inc.

Reconciliation of Net Income (Loss) to Non-GAAP Financial Measures

(Unaudited and in thousands, except per share data)

​

Reconciliation of Net Income (Loss) to FFO Attributable to Common Stockholders and

Adjusted FFO Attributable to Common Stockholders

​

​	​	​	​	​	​	​
​	​	Quarter Ended March 31,
​	​	2022		****	2021
​	​	​	​	​	​	​
Net income (loss)	****	$	15,123		$	(55,287)
Preferred stock dividends	​	​	(3,773)	​	​	(3,207)
Operations held for investment:	​	​	​	​	​	​
Real estate depreciation and amortization	​	​	31,027	​	​	30,143
(Gain) loss on sale of assets	​	​	(22,946)	​	​	70
Noncontrolling interest:	​	​	​	​	​	​
(Income) loss from consolidated joint venture attributable to noncontrolling interest	​	​	(1,134)	​	​	1,975
Real estate depreciation and amortization	​	​	(790)	​	​	(810)
FFO attributable to common stockholders	​	​	17,507	​	​	(27,116)
​	​	​	​	​	​	​
Operations held for investment:	​	​	​	​	​	​
Amortization of deferred stock compensation (1)	​	​	3,578	​	​	2,752
Real estate amortization of right-of-use assets and obligations	​	​	(286)	​	​	85
Amortization of contract intangibles, net	​	​	60	​	​	—
Noncash interest on derivatives, net	​	​	(1,842)	​	​	(869)
Loss (gain) on extinguishment of debt	​	​	213	​	​	(222)
Prior year property tax adjustments, net	​	​	—	​	​	(827)
Hurricane-related insurance proceeds net of losses	​	​	(2,893)	​	​	—
Noncontrolling interest:	​	​	​	​	​	​
Real estate amortization of right-of-use asset and obligation	​	​	72	​	​	72
Noncash interest on derivatives, net	​	​	2	​	​	—
Adjustments to FFO attributable to common stockholders, net	​	​	(1,096)	​	​	991
​	​	​	​	​	​	​
Adjusted FFO attributable to common stockholders	​	$	16,411	​	$	(26,125)
​	​	​	​	​	​	​
FFO attributable to common stockholders per diluted share	​	$	0.08	​	$	(0.13)
​	​	​	​	​	​	​
Adjusted FFO attributable to common stockholders per diluted share	​	$	0.08	​	$	(0.12)
​	​	​	​	​	​	​
Basic weighted average shares outstanding	​	​	217,271	​	​	214,438
Shares associated with unvested restricted stock awards	​	​	305	​	​	210
Diluted weighted average shares outstanding	​	​	217,576	​	​	214,648

​

(1)	Amortization of deferred stock compensation has been added to the adjustments to FFO attributable to common stockholders, net for the three months ended March 31, 2021 to conform to the current year’s presentation.

​

​

​

​ 11

Sunstone Hotel Investors, Inc.

Non-GAAP Financial Measures

Hotel Adjusted EBITDAre and Margins

(Unaudited and in thousands)

​

​

​	​	​	​	​	​	​
​	​	Quarter Ended March 31,
​	​	2022		​	2021
​	​	​	​	​	​	​
12 Hotel Portfolio Adjusted EBITDAre Margin (1)	​	​	25.0%	​	​	(22.0)%
​	​	​	​	​	​	​
​	​	​	​	​	​	​
Total revenues	​	$	172,315	​	$	50,633
Non-hotel revenues (2)	​	​	(20)	​	​	(22)
Reimbursements to offset net losses (3)	​	​	(1,618)	​	​	(4,041)
Total Actual Hotel Revenues	​	​	170,677	​	​	46,570
Non-comparable hotel revenues (4)	​	​	(17,734)	​	​	—
Sold hotel revenues (5)	​	​	(3,234)	​	​	(3,978)
Total 12 Hotel Portfolio Revenues	​	$	149,709	​	$	42,592
​	​	​	​	​	​	​
​	​	​	​	​	​	​
Net income (loss)	​	$	15,123	​	$	(55,287)
Non-hotel revenues (2)	​	​	(20)	​	​	(22)
Reimbursements to offset net losses (3)	​	​	(1,618)	​	​	(4,041)
Non-hotel operating expenses, net (6)	​	​	(372)	​	​	(1,564)
Property-level prior year property tax adjustments (7)	​	​	—	​	​	(72)
Property-level legal fees related to sold hotel (8)	​	​	—	​	​	58
Property-level hurricane-related restoration expenses (9)	​	​	1,476	​	​	—
Corporate overhead	​	​	10,714	​	​	7,177
Depreciation and amortization	​	​	31,360	​	​	30,770
Interest and other (income) loss	​	​	(4,380)	​	​	379
Interest expense	​	​	5,081	​	​	7,649
Gain on sale of assets	​	​	(22,946)	​	​	—
Loss (gain) on extinguishment of debt	​	​	213	​	​	(222)
Income tax provision	​	​	136	​	​	43
Actual Hotel Adjusted EBITDAre	​	​	34,767	​	​	(15,132)
Non-comparable hotel Adjusted EBITDAre (4)	​	​	514	​	​	—
Sold hotel Adjusted EBITDAre (5)	​	​	2,172	​	​	5,751
12 Hotel Portfolio Adjusted EBITDAre	​	$	37,453	​	$	(9,381)

​

​

​

​

​

*Footnotes on following page 12

​

(1)	12 Hotel Portfolio Adjusted EBITDAre Margin is calculated as 12 Hotel Portfolio Adjusted EBITDAre divided by Total 12 Hotel Portfolio 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)	Reimbursements to offset net losses for the first quarters of 2022 and 2021 include $1.6 million and $4.0 million, respectively, at the Hyatt Regency San Francisco as stipulated by the hotel's operating lease agreement.
---	---
(4)	Non-comparable hotel revenues and Adjusted EBITDAre include results generated during the Company's ownership period for the Montage Healdsburg and the Four Seasons Resort Napa Valley, acquired in April 2021 and December 2021, respectively.
---	---
(5)	Sold hotel revenues and Adjusted EBITDAre for the first quarter 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. Sold hotel revenues and Adjusted EBITDAre for the first quarter of 2021 also include results for the Embassy Suites La Jolla and the Renaissance Westchester, sold in December 2021 and October 2021, respectively.
---	---
(6)	Non-hotel operating expenses, net include the following: the amortization of hotel real estate-related right-of-use assets and obligations; the amortization of a favorable management agreement contract intangible; finance lease obligation interest - cash ground rent; and prior year property-tax credits, net received in the first quarter of 2021 for a hotel sold in 2020.
---	---
(7)	Property-level prior year property tax adjustment for the first quarter of 2021 includes a credit of $0.1 million received at the Renaissance Washington DC.
---	---
(8)	Property-level legal fees related to sold hotel include $0.1 million in legal fees at the Renaissance Westchester, sold in October 2021.
---	---
(9)	Property-level hurricane-related restoration expenses for the first quarter of 2022 include a total of $1.5 million incurred at the Hilton New Orleans St. Charles and the JW Marriott New Orleans.
---	---

13

​ Exhibit 99.2

​

​

​	​	​
<br><br>​<br><br>Supplemental Financial Information<br><br>For the quarter ended March 31, 2022<br><br>May 4, 2022<br><br>​
​		​

​

​

​ ​

​

Supplemental Financial Information May 4, 2022

Table of Contents

​

​	​	​	​	​	​	​	​	​
Corporate Profile And Disclosures Regarding Non-GAAP Financial Measures								2
Pro Forma Corporate Financial Information								7
Capitalization								20
Property-Level Data And Operating Statistics								23
Property-Level Adjusted EBITDAre & Adjusted EBITDAre Margins								28

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​ ​

​

Supplemental Financial Information May 4, 2022

​

CORPORATE PROFILE AND DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES

​

​

​

​

​

​

​

​

​

​

​

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

​

​ ​

​

Supplemental Financial Information May 4, 2022

​

About Sunstone

Sunstone Hotel Investors, Inc. (the “Company,” “we,” and “our”) (NYSE: SHO) is a lodging real estate investment trust (“REIT”) that as of May 4, 2022 has interests in 14 hotels comprised of 7,396 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 hotels considered to be Long-Term Relevant 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 200 Spectrum Center Drive, 21^st^ Floor Irvine, CA 92618 (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 May 4, 2022

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 that 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.

​

​

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

​ ​

​

Supplemental Financial Information May 4, 2022

​

​

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.
---	---
●	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.
---	---
●	Acquisition costs: under GAAP, costs associated with acquisitions that meet the definition of a business are expensed in the year incurred. We exclude the effect of these costs because we believe they are not reflective of the ongoing performance of the Company or our hotels.
---	---
●	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; prior year property tax assessments or credits; 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 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, 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 is a finance lease, and, therefore, we include 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 current 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.

​

​

​

​

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

​ ​

​

Supplemental Financial Information May 4, 2022

​

​

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. 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.

Reconciliations of net income (loss) 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 supplemental package. Beginning with the quarter ended March 31, 2022, the Company’s calculation of Adjusted FFO attributable to common stockholders excludes the noncash amortization expense associated with deferred stock compensation. Adjusted FFO attributable to common stockholders for the prior periods presented in this supplemental package have also been adjusted to exclude this expense.

The 14 Hotel Portfolio includes all hotels owned by the Company as of March 31, 2022. The 12 Hotel Portfolio includes the 14 Hotel Portfolio less the Montage Healdsburg and the Four Seasons Resort Napa Valley, acquired by the Company in April 2021 and December 2021, respectively.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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

​

​ ​

​

Supplemental Financial Information May 4, 2022

​

PRO FORMA CORPORATE FINANCIAL INFORMATION

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

	​
PRO FORMA CORPORATE FINANCIAL INFORMATION		​	Page 7
​		​	​

​ ​

​

Supplemental Financial Information May 4, 2022

Pro Forma Consolidated Statements of Operations

Q1 2022 – Q2 2021, Trailing 12 Months

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​		Quarter Ended (1)											​	Trailing 12 Months
(Unaudited and in thousands, except per share data)		March 31,		​	December 31,		​	September 30,		​	June 30,		​	Ended
​		2022			2021			2021			2021			March 31, 2022(1)
Revenues		​	​	​	​	​	​	​	​	​	​	​	​	​	​
Room		$	106,272	​	$	103,206	​	$	101,565	​	$	76,110	​	$	387,153
Food and beverage		​	39,460	​	​	34,991	​	​	26,123	​	​	14,989	​	​	115,563
Other operating		​	23,349	​	​	19,805	​	​	20,126	​	​	16,191	​	​	79,471
Total revenues		​	169,081	​	​	158,002	​	​	147,814	​	​	107,290	​	​	582,187
​		​	​	​	​	​	​	​	​	​	​	​	​	​	​
Operating Expenses		​	​	​	​	​	​	​	​	​	​	​	​	​	​
Room		​	28,540	​	​	28,129	​	​	26,575	​	​	20,097	​	​	103,341
Food and beverage		​	32,059	​	​	29,859	​	​	24,343	​	​	15,323	​	​	101,584
Other expenses		​	71,125	​	​	65,887	​	​	61,968	​	​	47,721	​	​	246,701
Corporate overhead		​	10,714	​	​	8,203	​	​	15,422	​	​	9,467	​	​	43,806
Depreciation and amortization		​	30,472	​	​	29,527	​	​	28,957	​	​	29,046	​	​	118,002
Impairment losses		​	—	​	​	1,671	​	​	1,014	​	​	—	​	​	2,685
Total operating expenses		​	172,910	​	​	163,276	​	​	158,279	​	​	121,654	​	​	616,119
​		​	​	​	​	​	​	​	​	​	​	​	​	​	​
Interest and other income		​	4,380	​	​	13	​	​	2	​	​	21	​	​	4,416
Interest expense		​	(4,964)	​	​	(6,440)	​	​	(7,019)	​	​	(7,100)	​	​	(25,523)
(Loss) gain on extinguishment of debt, net		​	(213)	​	​	(292)	​	​	61	​	​	88	​	​	(356)
Loss before income taxes		​	(4,626)	​	​	(11,993)	​	​	(17,421)	​	​	(21,355)	​	​	(55,395)
Income tax provision, net		​	(136)	​	​	(18)	​	​	(25)	​	​	(23)	​	​	(202)
Net loss		$	(4,762)	​	$	(12,011)	​	$	(17,446)	​	$	(21,378)	​	$	(55,597)
​		​	​	​	​	​	​	​	​	​	​	​	​	​	​
12 Hotel Portfolio Adjusted EBITDAre (2)		$	37,453	​	$	32,227	​	$	31,667	​	$	18,044	​	$	119,391
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pro Forma Adjusted EBITDAre**, excluding noncontrolling interest (3)**		$	29,335	​	$	29,749	​	$	30,620	​	$	17,714	​	$	107,418
​		​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pro Forma Adjusted FFO attributable to common stockholders (4)		$	18,583	​	$	18,697	​	$	19,567	​	$	6,353	​	$	63,200
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pro Forma Adjusted FFO attributable to common stockholders per diluted share (4)		$	0.09	​	$	0.09	​	$	0.09	​	$	0.03	​	$	0.29

​

(1)	Excludes operating results for the Renaissance Westchester, the Embassy Suites La Jolla and the Hyatt Centric Chicago Magnificent Mile due to their sales in October 2021, December 2021 and February 2022, respectively, along with the Embassy Suites Chicago and the Hilton Garden Inn Chicago Downtown/Magnificent Mile due to their sale in March 2022.
(2)	Hotel Adjusted EBITDAre reconciliation for the first quarter of 2022 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 May 4, 2022.
---	---
(3)	Pro Forma Adjusted EBITDAre, excluding noncontrolling interest reconciliations for the first quarter of 2022, the fourth, third and second quarters of 2021, along with Trailing 12 Months can be found later in this presentation.
---	---
(4)	Pro Forma Adjusted FFO attributable to common stockholders and Pro Forma Adjusted FFO attributable to common stockholders per diluted share reconciliations for the first quarter of 2022, the fourth, third and second quarters of 2021, along with the Trailing 12 Months can be found later in this presentation.
---	---
	​
---	---	---	---
PRO FORMA CORPORATE FINANCIAL INFORMATION		​	Page 8
​		​	​

​ ​

​

Supplemental Financial Information May 4, 2022

Pro Forma Consolidated Statements of Operations

Q4 2021 – Q1 2021, FY 2021

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​		Quarter Ended (1)											​	Year Ended (1)
(Unaudited and in thousands, except per share data)		December 31,		​	September 30,		​	June 30,		​	March 31,		​	December 31,
​		2021			2021			2021			2021			2021
Revenues		​	​	​	​	​	​	​	​	​	​	​	​	​	​
Room		$	103,206	​	$	101,565	​	$	76,110	​	$	31,182	​	$	312,063
Food and beverage		​	34,991	​	​	26,123	​	​	14,989	​	​	4,864	​	​	80,967
Other operating		​	19,805	​	​	20,126	​	​	16,191	​	​	10,609	​	​	66,731
Total revenues		​	158,002	​	​	147,814	​	​	107,290	​	​	46,655	​	​	459,761
​		​	​	​	​	​	​	​	​	​	​	​	​	​	​
Operating Expenses		​	​	​	​	​	​	​	​	​	​	​	​	​	​
Room		​	28,129	​	​	26,575	​	​	20,097	​	​	10,134	​	​	84,935
Food and beverage		​	29,859	​	​	24,343	​	​	15,323	​	​	5,805	​	​	75,330
Other expenses		​	65,887	​	​	61,968	​	​	47,721	​	​	34,802	​	​	210,378
Corporate overhead		​	8,203	​	​	15,422	​	​	9,467	​	​	7,177	​	​	40,269
Depreciation and amortization		​	29,527	​	​	28,957	​	​	29,046	​	​	26,944	​	​	114,474
Impairment losses		​	1,671	​	​	1,014	​	​	—	​	​	—	​	​	2,685
Total operating expenses		​	163,276	​	​	158,279	​	​	121,654	​	​	84,862	​	​	528,071
​		​	​	​	​	​	​	​	​	​	​	​	​	​	​
Interest and other income (loss)		​	13	​	​	2	​	​	21	​	​	(379)	​	​	(343)
Interest expense		​	(6,440)	​	​	(7,019)	​	​	(7,100)	​	​	(6,693)	​	​	(27,252)
(Loss) gain on extinguishment of debt, net		​	(292)	​	​	61	​	​	88	​	​	222	​	​	79
Loss before income taxes		​	(11,993)	​	​	(17,421)	​	​	(21,355)	​	​	(45,057)	​	​	(95,826)
Income tax provision, net		​	(18)	​	​	(25)	​	​	(23)	​	​	(43)	​	​	(109)
Net loss		$	(12,011)	​	$	(17,446)	​	$	(21,378)	​	$	(45,100)	​	$	(95,935)
​		​	​	​	​	​	​	​	​	​	​	​	​	​	​
Hotel Adjusted EBITDAre (2)		$	32,227	​	$	31,667	​	$	18,044	​	$	(9,381)	​	$	72,557
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pro Forma Adjusted EBITDAre**, excluding noncontrolling interest (3)**		$	29,749	​	$	30,620	​	$	17,714	​	$	(8,907)	​	$	69,176
​		​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pro Forma Adjusted FFO attributable to common stockholders (4)		$	18,697	​	$	19,567	​	$	6,353	​	$	(19,748)	​	$	24,869
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pro Forma Adjusted FFO attributable to common stockholders per diluted share (4)		$	0.09	​	$	0.09	​	$	0.03	​	$	(0.09)	​	$	0.12
(1)	Excludes operating results for the Renaissance Westchester, the Embassy Suites La Jolla and the Hyatt Centric Chicago Magnificent Mile due to their sales in October 2021, December 2021 and February 2022, respectively, along with the Embassy Suites Chicago and the Hilton Garden Inn Chicago Downtown/Magnificent Mile due to their sale in March 2022.
---	---
(2)	Hotel Adjusted EBITDAre reconciliation for the first quarter of 2021 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 May 4, 2022.
---	---
(3)	Pro Forma Adjusted EBITDAre, excluding noncontrolling interest reconciliations for the fourth, third, second and first quarters of 2021, along with the year ended December 31, 2021 can be found later in this presentation.
---	---
(4)	Pro Forma Adjusted FFO attributable to common stockholders and Pro Forma Adjusted FFO attributable to common stockholders per diluted share reconciliations for the fourth, third, second and first quarters of 2021, along with the year ended December 31, 2021 can be found later in this presentation.
---	---
	​
---	---	---	---
PRO FORMA CORPORATE FINANCIAL INFORMATION		​	Page 9
​		​	​

​ ​

​

Supplemental Financial Information May 4, 2022

Pro Forma 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		$	135,417	​	$	142,166	​	$	149,355	​	$	133,503	​	$	560,441
Food and beverage		​	56,326	​	​	51,825	​	​	63,882	​	​	59,943	​	​	231,976
Other operating		​	15,986	​	​	16,347	​	​	15,059	​	​	13,961	​	​	61,353
Total revenues		​	207,729	​	​	210,338	​	​	228,296	​	​	207,407	​	​	853,770
​		​	​	​	​	​	​	​	​	​	​	​	​	​	​
Operating Expenses		​	​	​	​	​	​	​	​	​	​	​	​	​	​
Room		​	35,057	​	​	36,419	​	​	36,298	​	​	34,545	​	​	142,319
Food and beverage		​	38,217	​	​	37,053	​	​	39,952	​	​	39,260	​	​	154,482
Other expenses		​	69,456	​	​	68,128	​	​	69,836	​	​	69,437	​	​	276,857
Corporate overhead		​	7,275	​	​	7,395	​	​	8,078	​	​	7,516	​	​	30,264
Depreciation and amortization		​	26,992	​	​	27,076	​	​	26,445	​	​	26,302	​	​	106,815
Total operating expenses		​	176,997	​	​	176,071	​	​	180,609	​	​	177,060	​	​	710,737
​		​	​	​	​	​	​	​	​	​	​	​	​	​	​
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		​	26,912	​	​	28,955	​	​	40,864	​	​	25,122	​	​	121,853
Income tax (provision) benefit, net		​	(1,034)	​	​	749	​	​	(2,676)	​	​	3,112	​	​	151
Net income		$	25,878	​	$	29,704	​	$	38,188	​	$	28,234	​	$	122,004
​		​	​	​	​	​	​	​	​	​	​	​	​	​	​
Hotel Adjusted EBITDAre (2)		$	65,097	​	$	68,773	​	$	82,274	​	$	64,440	​	$	280,584
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pro Forma Adjusted EBITDAre**, excluding noncontrolling interest (3)**		$	60,400	​	$	63,170	​	$	77,541	​	$	61,066	​	$	262,177
​		​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pro Forma Adjusted FFO attributable to common stockholders (4)		$	49,620	​	$	53,456	​	$	66,602	​	$	49,736	​	$	219,414
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pro Forma Adjusted FFO attributable to common stockholders per diluted share (4)		$	0.23	​	$	0.25	​	$	0.31	​	$	0.23	​	$	1.03

​

(1)	Excludes operating 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 due to their sales 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 due to their sale in March 2022. In addition, excludes the Company's ownership 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, as well as the elimination of interest expense on the mortgage loan secured by the Renaissance Washington DC due to its repayment in December 2020.
(2)	Hotel Adjusted EBITDAre reconciliation for the first quarter of 2019 can be found later in this presentation.
---	---
(3)	Pro Forma Adjusted EBITDAre, excluding noncontrolling interest reconciliations for the fourth, third, second and first quarters of 2019, along with the year ended December 31, 2019 can be found later in this presentation.
---	---
(4)	Pro Forma Adjusted FFO attributable to common stockholders and Pro Forma Adjusted FFO attributable to common stockholders per diluted share reconciliations for the fourth, third, second and first quarters of 2019, along with year ended December 31, 2019 can be found later in this presentation.
---	---
​	​
---	---	---	---
PRO FORMA CORPORATE FINANCIAL INFORMATION		​	Page 10
​		​	​

​ ​

​

Supplemental Financial Information May 4, 2022

Pro Forma Reconciliation of Net Income (Loss) to EBITDAre and Adjusted EBITDAre**, Excluding Noncontrolling Interest**

Q1 2022 – Q2 2021, Trailing 12 Months

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	Quarter Ended											​	Trailing 12 Months
​	March 31,		​	December 31,		​	September 30,		​	June 30,		​	Ended
(In thousands)	2022		​	2021		​	2021		​	2021		​	March 31, 2022
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net income (loss)	$	15,123	​	$	138,324	​	$	(22,124)	​	$	(27,918)	​	$	103,405
Operations held for investment:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Depreciation and amortization	​	31,360	​	​	32,598	​	​	32,585	​	​	32,729	​	​	129,272
Interest expense	​	5,081	​	​	7,201	​	​	7,983	​	​	8,065	​	​	28,330
Income tax provision, net	​	136	​	​	18	​	​	25	​	​	23	​	​	202
(Gain) loss on sale of assets, net	​	(22,946)	​	​	(152,524)	​	​	12	​	​	—	​	​	(175,458)
Impairment losses	​	—	​	​	1,671	​	​	1,014	​	​	—	​	​	2,685
EBITDAre	​	28,754	​	​	27,288	​	​	19,495	​	​	12,899	​	​	88,436
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Operations held for investment:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Amortization of deferred stock compensation	​	3,578	​	​	2,212	​	​	3,165	​	​	4,659	​	​	13,614
Amortization of right-of-use assets and obligations	​	(346)	​	​	(340)	​	​	(335)	​	​	(338)	​	​	(1,359)
Amortization of contract intangibles, net	​	(6)	​	​	—	​	​	—	​	​	—	​	​	(6)
Finance lease obligation interest - cash ground rent	​	(117)	​	​	(351)	​	​	(351)	​	​	(351)	​	​	(1,170)
Property-level severance	​	—	​	​	(284)	​	​	—	​	​	—	​	​	(284)
Property-level severance related to sold hotels	​	—	​	​	—	​	​	4,562	​	​	—	​	​	4,562
Loss (gain) on extinguishment of debt, net	​	213	​	​	428	​	​	(61)	​	​	(88)	​	​	492
Prior year property tax adjustments, net	​	—	​	​	—	​	​	605	​	​	(1,162)	​	​	(557)
Lawsuit settlement cost	​	—	​	​	21	​	​	691	​	​	—	​	​	712
CEO transition costs	​	—	​	​	815	​	​	7,976	​	​	—	​	​	8,791
Hurricane-related (insurance proceeds) net of losses	​	(2,893)	​	​	2,612	​	​	1,621	​	​	—	​	​	1,340
Noncontrolling interest:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
(Income) loss from consolidated joint venture attributable to noncontrolling interest	​	(1,134)	​	​	(335)	​	​	(933)	​	​	596	​	​	(1,806)
Depreciation and amortization	​	(790)	​	​	(791)	​	​	(791)	​	​	(806)	​	​	(3,178)
Interest expense	​	(168)	​	​	(160)	​	​	(181)	​	​	(159)	​	​	(668)
Amortization of right-of-use asset and obligation	​	72	​	​	73	​	​	72	​	​	73	​	​	290
Lawsuit settlement cost	​	—	​	​	(5)	​	​	(173)	​	​	—	​	​	(178)
Adjustments to EBITDAre**, net**	​	(1,591)	​	​	3,895	​	​	15,867	​	​	2,424	​	​	20,595
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Adjusted EBITDAre**, excluding noncontrolling interest**	$	27,163	​	$	31,183	​	$	35,362	​	$	15,323	​	$	109,031
Sold hotel Adjusted EBITDAre (1)	​	2,172	​	​	(1,434)	​	​	(4,742)	​	​	2,391	​	​	(1,613)
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pro Forma Adjusted EBITDAre**, excluding noncontrolling interest**	$	29,335	​	$	29,749	​	$	30,620	​	$	17,714	​	$	107,418

*Footnotes on page 13

​	​
PRO FORMA CORPORATE FINANCIAL INFORMATION		​	Page 11
​		​	​

​ ​

​

Supplemental Financial Information May 4, 2022

Pro Forma Reconciliation of Net Income (Loss) to FFO and Adjusted FFO Attributable to Common Stockholders

Q1 2022 - Q2 2021, Trailing 12 Months

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	Quarter Ended											​	Trailing 12 Months
​	March 31,		​	December 31,		​	September 30,		​	June 30,		​	Ended
(In thousands, except per share data)	2022		​	2021		​	2021		​	2021		​	March 31, 2022
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net income (loss)	$	15,123	​	$	138,324	​	$	(22,124)	​	$	(27,918)	​	$	103,405
Preferred stock dividends and redemption charges	​	(3,773)	​	​	(3,349)	​	​	(6,287)	​	​	(7,795)	​	​	(21,204)
Operations held for investment:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Real estate depreciation and amortization	​	31,027	​	​	31,976	​	​	31,959	​	​	32,104	​	​	127,066
(Gain) loss on sale of assets, net	​	(22,946)	​	​	(152,524)	​	​	12	​	​	—	​	​	(175,458)
Impairment losses	​	—	​	​	1,671	​	​	1,014	​	​	—	​	​	2,685
Noncontrolling interest:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
(Income) loss from consolidated joint venture attributable to noncontrolling interest	​	(1,134)	​	​	(335)	​	​	(933)	​	​	596	​	​	(1,806)
Real estate depreciation and amortization	​	(790)	​	​	(791)	​	​	(791)	​	​	(806)	​	​	(3,178)
FFO attributable to common stockholders	​	17,507	​	​	14,972	​	​	2,850	​	​	(3,819)	​	​	31,510
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Operations held for investment:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Amortization of deferred stock compensation	​	3,578	​	​	2,212	​	​	3,165	​	​	4,659	​	​	13,614
Real estate amortization of right-of-use assets and obligations	​	(286)	​	​	87	​	​	87	​	​	77	​	​	(35)
Amortization of contract intangibles, net	​	60	​	​	—	​	​	—	​	​	—	​	​	60
Noncash interest on derivatives, net	​	(1,842)	​	​	(1,211)	​	​	(616)	​	​	(709)	​	​	(4,378)
Property-level severance	​	—	​	​	(284)	​	​	—	​	​	—	​	​	(284)
Property-level severance related to sold hotels	​	—	​	​	—	​	​	4,562	​	​	—	​	​	4,562
Loss (gain) on extinguishment of debt, net	​	213	​	​	428	​	​	(61)	​	​	(88)	​	​	492
Prior year property tax adjustments, net	​	—	​	​	—	​	​	605	​	​	(1,162)	​	​	(557)
Lawsuit settlement cost	​	—	​	​	21	​	​	691	​	​	—	​	​	712
Preferred stock redemption charges	​	—	​	​	—	​	​	2,624	​	​	4,016	​	​	6,640
CEO transition costs	​	—	​	​	815	​	​	7,976	​	​	—	​	​	8,791
Hurricane-related (insurance proceeds) net of losses	​	(2,893)	​	​	2,612	​	​	1,621	​	​	—	​	​	1,340
Noncontrolling interest:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Real estate amortization of right-of-use asset and obligation	​	72	​	​	73	​	​	72	​	​	73	​	​	290
Noncash interest on derivatives, net	​	2	​	​	1	​	​	(20)	​	​	—	​	​	(17)
Lawsuit settlement cost	​	—	​	​	(5)	​	​	(173)	​	​	—	​	​	(178)
Adjustments to FFO attributable to common stockholders, net	​	(1,096)	​	​	4,749	​	​	20,533	​	​	6,866	​	​	31,052
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Adjusted FFO attributable to common stockholders	$	16,411	​	$	19,721	​	$	23,383	​	$	3,047	​	$	62,562
Sold hotel Adjusted FFO (1)	​	2,172	​	​	(1,024)	​	​	(4,129)	​	​	3,005	​	​	24
Equity transactions (2)	​	—	​	​	—	​	​	313	​	​	301	​	​	614
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pro Forma Adjusted FFO attributable to common stockholders	$	18,583	​	$	18,697	​	$	19,567	​	$	6,353	​	$	63,200
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pro Forma Adjusted FFO attributable to common stockholders per diluted share	$	0.09	​	$	0.09	​	$	0.09	​	$	0.03	​	$	0.29
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Basic weighted average shares outstanding	​	217,271	​	​	217,870	​	​	217,709	​	​	215,113	​	​	216,995
Shares associated with unvested restricted stock awards	​	305	​	​	445	​	​	296	​	​	352	​	​	349
Diluted weighted average shares outstanding	​	217,576	​	​	218,315	​	​	218,005	​	​	215,465	​	​	217,344
Equity transactions (2)	​	(3,138)	​	​	(3,879)	​	​	(3,879)	​	​	(1,409)	​	​	(3,081)
Pro Forma diluted weighted average shares outstanding	​	214,438	​	​	214,436	​	​	214,126	​	​	214,056	​	​	214,263

*Footnotes on page 13

​	​
PRO FORMA CORPORATE FINANCIAL INFORMATION		​	Page 12
​		​	​

​ ​

​

Supplemental Financial Information May 4, 2022

Pro Forma Reconciliation of Net Income (Loss) to EBITDAre**, Adjusted EBITDAre, Excluding Noncontrolling Interest,**

FFO and Adjusted FFO Attributable to Common Stockholders

Q1 2022 - Q2 2021, Trailing 12 Months Footnotes

(1)	Sold Hotel Adjusted EBITDAre and Adjusted FFO include operating results for the Renaissance Westchester, the Embassy Suites La Jolla and the Hyatt Centric Chicago Magnificent Mile sold in 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.
(2)	Equity Transactions represent the reduction in preferred stock dividends due to the redemptions of the 6.95% Series E and 6.45% Series F Cumulative Redeemable Preferred Stocks in June 2021 and August 2021, respectively, offset by the issuances of the 6.125% Series H and 5.70% Series I Cumulative Redeemable Preferred Stocks in May 2021 and July 2021, respectively. It also includes the issuance of 2,913,682 shares of common stock in the second quarter of 2021 and the repurchase of 3,879,025 shares of common stock in the first quarter of 2022.
---	---

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​	​
PRO FORMA CORPORATE FINANCIAL INFORMATION		​	Page 13
​		​	​

​ ​

​

Supplemental Financial Information May 4, 2022

Pro Forma Reconciliation of Net Income (Loss) to EBITDAre and Adjusted EBITDAre**, Excluding** Noncontrolling Interest

Q4 2021 – Q1 2021, FY 2021

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	Quarter Ended											​	Year Ended
​	December 31,		​	September 30,		​	June 30,		​	March 31,		​	December 31,
(In thousands)	2021		​	2021		​	2021		​	2021		​	2021
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net income (loss)	$	138,324	​	$	(22,124)	​	$	(27,918)	​	$	(55,287)	​	$	32,995
Operations held for investment:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Depreciation and amortization	​	32,598	​	​	32,585	​	​	32,729	​	​	30,770	​	​	128,682
Interest expense	​	7,201	​	​	7,983	​	​	8,065	​	​	7,649	​	​	30,898
Income tax provision, net	​	18	​	​	25	​	​	23	​	​	43	​	​	109
(Gain) loss on sale of assets, net	​	(152,524)	​	​	12	​	​	—	​	​	70	​	​	(152,442)
Impairment losses	​	1,671	​	​	1,014	​	​	—	​	​	—	​	​	2,685
EBITDAre	​	27,288	​	​	19,495	​	​	12,899	​	​	(16,755)	​	​	42,927
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Operations held for investment:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Amortization of deferred stock compensation	​	2,212	​	​	3,165	​	​	4,659	​	​	2,752	​	​	12,788
Amortization of right-of-use assets and obligations	​	(340)	​	​	(335)	​	​	(338)	​	​	(331)	​	​	(1,344)
Finance lease obligation interest - cash ground rent	​	(351)	​	​	(351)	​	​	(351)	​	​	(351)	​	​	(1,404)
Property-level severance	​	(284)	​	​	—	​	​	—	​	​	—	​	​	(284)
Property-level severance related to sold hotels	​	—	​	​	4,562	​	​	—	​	​	—	​	​	4,562
Loss (gain) on extinguishment of debt, net	​	428	​	​	(61)	​	​	(88)	​	​	(222)	​	​	57
Prior year property tax adjustments, net	​	—	​	​	605	​	​	(1,162)	​	​	(827)	​	​	(1,384)
Lawsuit settlement cost	​	21	​	​	691	​	​	—	​	​	—	​	​	712
CEO transition costs	​	815	​	​	7,976	​	​	—	​	​	—	​	​	8,791
Hurricane-related losses	​	2,612	​	​	1,621	​	​	—	​	​	—	​	​	4,233
Noncontrolling interest:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
(Income) loss from consolidated joint venture attributable to noncontrolling interest	​	(335)	​	​	(933)	​	​	596	​	​	1,975	​	​	1,303
Depreciation and amortization	​	(791)	​	​	(791)	​	​	(806)	​	​	(810)	​	​	(3,198)
Interest expense	​	(160)	​	​	(181)	​	​	(159)	​	​	(161)	​	​	(661)
Amortization of right-of-use asset and obligation	​	73	​	​	72	​	​	73	​	​	72	​	​	290
Lawsuit settlement cost	​	(5)	​	​	(173)	​	​	—	​	​	—	​	​	(178)
Adjustments to EBITDAre**, net**	​	3,895	​	​	15,867	​	​	2,424	​	​	2,097	​	​	24,283
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Adjusted EBITDAre**, excluding noncontrolling interest**	$	31,183	​	$	35,362	​	$	15,323	​	$	(14,658)	​	$	67,210
Sold hotel Adjusted EBITDAre (1)	​	(1,434)	​	​	(4,742)	​	​	2,391	​	​	5,751	​	​	1,966
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pro Forma Adjusted EBITDAre**, excluding noncontrolling interest**	$	29,749	​	$	30,620	​	$	17,714	​	$	(8,907)	​	$	69,176

*Footnotes on page 16

​

​

​

	​
PRO FORMA CORPORATE FINANCIAL INFORMATION		​	Page 14
​		​	​

​ ​

​

Supplemental Financial Information May 4, 2022

Pro Forma Reconciliation of Net Income (Loss) to FFO and Adjusted FFO Attributable to Common Stockholders

Q4 2021 – Q1 2021, FY 2021

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	Quarter Ended											​	Year Ended
​	December 31,		​	September 30,		​	June 30,		​	March 31,		​	December 31,
(In thousands, except per share data)	2021		​	2021		​	2021		​	2021		​	2021
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net income (loss)	$	138,324	​	$	(22,124)	​	$	(27,918)	​	$	(55,287)	​	$	32,995
Preferred stock dividends and redemption charges	​	(3,349)	​	​	(6,287)	​	​	(7,795)	​	​	(3,207)	​	​	(20,638)
Operations held for investment:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Real estate depreciation and amortization	​	31,976	​	​	31,959	​	​	32,104	​	​	30,143	​	​	126,182
(Gain) loss on sale of assets, net	​	(152,524)	​	​	12	​	​	—	​	​	70	​	​	(152,442)
Impairment losses	​	1,671	​	​	1,014	​	​	—	​	​	—	​	​	2,685
Noncontrolling interest:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
(Income) loss from consolidated joint venture attributable to noncontrolling interest	​	(335)	​	​	(933)	​	​	596	​	​	1,975	​	​	1,303
Real estate depreciation and amortization	​	(791)	​	​	(791)	​	​	(806)	​	​	(810)	​	​	(3,198)
FFO attributable to common stockholders	​	14,972	​	​	2,850	​	​	(3,819)	​	​	(27,116)	​	​	(13,113)
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Operations held for investment:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Amortization of deferred stock compensation	​	2,212	​	​	3,165	​	​	4,659	​	​	2,752	​	​	12,788
Real estate amortization of right-of-use assets and obligations	​	87	​	​	87	​	​	77	​	​	85	​	​	336
Noncash interest on derivatives, net	​	(1,211)	​	​	(616)	​	​	(709)	​	​	(869)	​	​	(3,405)
Property-level severance	​	(284)	​	​	—	​	​	—	​	​	—	​	​	(284)
Property-level severance related to sold hotels	​	—	​	​	4,562	​	​	—	​	​	—	​	​	4,562
Loss (gain) on extinguishment of debt, net	​	428	​	​	(61)	​	​	(88)	​	​	(222)	​	​	57
Prior year property tax adjustments, net	​	—	​	​	605	​	​	(1,162)	​	​	(827)	​	​	(1,384)
Lawsuit settlement cost	​	21	​	​	691	​	​	—	​	​	—	​	​	712
Preferred stock redemption charges	​	—	​	​	2,624	​	​	4,016	​	​	—	​	​	6,640
CEO transition costs	​	815	​	​	7,976	​	​	—	​	​	—	​	​	8,791
Hurricane-related losses	​	2,612	​	​	1,621	​	​	—	​	​	—	​	​	4,233
Noncontrolling interest:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Real estate amortization of right-of-use asset and obligation	​	73	​	​	72	​	​	73	​	​	72	​	​	290
Noncash interest on derivatives, net	​	1	​	​	(20)	​	​	—	​	​	—	​	​	(19)
Lawsuit settlement cost	​	(5)	​	​	(173)	​	​	—	​	​	—	​	​	(178)
Adjustments to FFO attributable to common stockholders, net	​	4,749	​	​	20,533	​	​	6,866	​	​	991	​	​	33,139
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Adjusted FFO attributable to common stockholders	$	19,721	​	$	23,383	​	$	3,047	​	$	(26,125)	​	$	20,026
Sold hotel Adjusted FFO (1)	​	(1,024)	​	​	(4,129)	​	​	3,005	​	​	6,356	​	​	4,208
Equity transactions (2)	​	—	​	​	313	​	​	301	​	​	21	​	​	635
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pro Forma Adjusted FFO attributable to common stockholders	$	18,697	​	$	19,567	​	$	6,353	​	$	(19,748)	​	$	24,869
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pro Forma Adjusted FFO attributable to common stockholders per diluted share	$	0.09	​	$	0.09	​	$	0.03	​	$	(0.09)	​	$	0.12
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Basic weighted average shares outstanding	​	217,870	​	​	217,709	​	​	215,113	​	​	214,438	​	​	216,296
Shares associated with unvested restricted stock awards	​	445	​	​	296	​	​	352	​	​	210	​	​	326
Diluted weighted average shares outstanding	​	218,315	​	​	218,005	​	​	215,465	​	​	214,648	​	​	216,622
Equity transactions (2)	​	(3,879)	​	​	(3,879)	​	​	(1,409)	​	​	(965)	​	​	(2,545)
Pro Forma diluted weighted average shares outstanding	​	214,436	​	​	214,126	​	​	214,056	​	​	213,683	​	​	214,077

*Footnotes on page 16

	​
PRO FORMA CORPORATE FINANCIAL INFORMATION		​	Page 15
​		​	​

​

​

Supplemental Financial Information May 4, 2022

Pro Forma Reconciliation of Net Income (Loss) to EBITDAre**, Adjusted EBITDAre, Excluding Noncontrolling Interest,**

FFO and Adjusted FFO Attributable to Common Stockholders

Q4 2021 – Q1 2021, FY 2021 Footnotes

(1)	Sold hotel Adjusted EBITDAre and Adjusted FFO include operating results for the Renaissance Westchester, the Embassy Suites La Jolla and the Hyatt Centric Chicago Magnificent Mile sold in 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.
(2)	Equity Transactions represent the reduction in preferred stock dividends due to the redemptions of the 6.95% Series E and 6.45% Series F Cumulative Redeemable Preferred Stocks in June 2021 and August 2021, respectively, offset by the issuances of the 6.125% Series H and 5.70% Series I Cumulative Redeemable Preferred Stocks in May 2021 and July 2021, respectively. It also includes the issuance of 2,913,682 shares of common stock in the second quarter of 2021 and the repurchase of 3,879,025 shares of common stock in the first quarter of 2022.
---	---

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

	​
PRO FORMA CORPORATE FINANCIAL INFORMATION		​	Page 16
​		​	​

​ ​

​

Supplemental Financial Information May 4, 2022

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

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)
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pro Forma Adjusted EBITDAre**, excluding noncontrolling interest**	$	60,400	​	$	63,170	​	$	77,541	​	$	61,066	​	$	262,177

*Footnotes on Page 19

​

​

​

​

​

​

​

​

​

​

	​
PRO FORMA CORPORATE FINANCIAL INFORMATION		​	Page 17
​		​	​

​ ​

​

Supplemental Financial Information May 4, 2022

Pro Forma Reconciliation of Net Income to FFO and Adjusted FFO Attributable to Common Stockholders

Q4 2019 – Q1 2019, FY 2019

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	Quarter Ended											​	Year Ended
​	December 31,		​	September 30,		​	June 30,		​	March 31,		​	December 31,
(In thousands, except per share data)	2019		​	2019		​	2019		​	2019		​	2019
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net income	$	45,414	​	$	33,545	​	$	45,918	​	$	17,916	​	$	142,793
Preferred stock dividends	​	(3,208)	​	​	(3,208)	​	​	(3,207)	​	​	(3,207)	​	​	(12,830)
Operations held for investment:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Real estate depreciation and amortization	​	36,639	​	​	36,951	​	​	35,900	​	​	35,770	​	​	145,260
Gain on sale of assets	​	(42,935)	​	​	—	​	​	—	​	​	—	​	​	(42,935)
Impairment loss	​	24,713	​	​	—	​	​	—	​	​	—	​	​	24,713
Noncontrolling interest:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Income from consolidated joint venture attributable to noncontrolling interest	​	(998)	​	​	(2,508)	​	​	(1,955)	​	​	(1,599)	​	​	(7,060)
Real estate depreciation and amortization	​	(803)	​	​	(793)	​	​	(640)	​	​	(639)	​	​	(2,875)
FFO attributable to common stockholders	​	58,822	​	​	63,987	​	​	76,016	​	​	48,241	​	​	247,066
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Operations held for investment:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Amortization of deferred stock compensation	​	2,145	​	​	2,146	​	​	2,900	​	​	2,122	​	​	9,313
Real estate amortization of right-of-use assets and obligations	​	147	​	​	146	​	​	146	​	​	151	​	​	590
Noncash interest on derivatives and finance lease obligations, net	​	(857)	​	​	1,155	​	​	3,634	​	​	2,119	​	​	6,051
Prior year property tax adjustments, net	​	(121)	​	​	(9)	​	​	109	​	​	189	​	​	168
Prior owner contingency funding	​	—	​	​	—	​	​	(900)	​	​	—	​	​	(900)
Noncash income tax provision (benefit), net	​	934	​	​	390	​	​	2,648	​	​	(3,284)	​	​	688
Noncontrolling interest:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Real estate amortization of right-of-use asset and obligation	​	73	​	​	72	​	​	73	​	​	72	​	​	290
Adjustments to FFO attributable to common stockholders, net	​	2,321	​	​	3,900	​	​	8,610	​	​	1,369	​	​	16,200
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Adjusted FFO attributable to common stockholders	$	61,143	​	$	67,887	​	$	84,626	​	$	49,610	​	$	263,266
Sold/Disposed hotel Adjusted FFO (1)	​	(13,225)	​	​	(16,144)	​	​	(19,747)	​	​	(1,608)	​	​	(50,724)
Debt and equity transactions (2)	​	1,702	​	​	1,713	​	​	1,723	​	​	1,734	​	​	6,872
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pro Forma Adjusted FFO attributable to common stockholders	$	49,620	​	$	53,456	​	$	66,602	​	$	49,736	​	$	219,414
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pro Forma Adjusted FFO attributable to common stockholders per diluted share	$	0.23	​	$	0.25	​	$	0.31	​	$	0.23	​	$	1.03
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Basic weighted average shares outstanding	​	223,638	​	​	224,530	​	​	227,389	​	​	227,219	​	​	225,681
Shares associated with unvested restricted stock awards	​	448	​	​	253	​	​	145	​	​	260	​	​	276
Diluted weighted average shares outstanding	​	224,086	​	​	224,783	​	​	227,534	​	​	227,479	​	​	225,957
Debt and equity transactions (2)	​	(10,736)	​	​	(11,628)	​	​	(14,505)	​	​	(14,519)	​	​	(12,833)
Pro Forma diluted weighted average shares outstanding	​	213,350	​	​	213,155	​	​	213,029	​	​	212,960	​	​	213,124

*Footnotes on Page 19

​

​

​

​

	​
PRO FORMA CORPORATE FINANCIAL INFORMATION		​	Page 18
​		​	​

​ ​

​

Supplemental Financial Information May 4, 2022

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

FFO and Adjusted FFO Attributable to Common Stockholders

Q4 2019 – Q1 2019, FY 2019 Footnotes

​

​

(1)	Sold/Disposed hotel Adjusted EBITDAre and Adjusted FFO include operating 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 operating 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)	Debt and Equity Transactions represent the reduction in interest expense on the mortgage loan secured by the Renaissance Washington DC due to its repayment in December 2020, along with the reduction in preferred stock dividends due to the redemptions of the 6.95% Series E and 6.45% Series F Cumulative Redeemable Preferred Stocks in June 2021 and August 2021, respectively, offset by the issuances of the 6.125% Series H and 5.70% Series I Cumulative Redeemable Preferred Stocks in May 2021 and July 2021, respectively. It also includes the reduction of 3,783,936 shares of common stock repurchased in the second, third and fourth quarters of 2019, the 9,770,081 shares repurchased in the first quarter of 2020 and the 3,879,025 shares repurchased in the first quarter of 2022 offset by the issuance of 2,913,682 shares of common stock in the second quarter of 2021.
---	---

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

	​
PRO FORMA CORPORATE FINANCIAL INFORMATION		​	Page 19
​		​	​

​ ​

​

​
	Supplemental Financial Information May 4, 2022

​

CAPITALIZATION

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

	​
CAPITALIZATION		​	Page 20
​		​	​

​ ​

​

Supplemental Financial Information May 4, 2022

Comparative Capitalization Q1 2022 – Q1 2021

​

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	March 31,		​	December 31,		​	September 30,		​	June 30,		​	March 31,		​
(In thousands, except per share data)		2022		****	2021		****	2021		****	2021		****	2021		​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Common Share Price & Dividends	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
At the end of the quarter	​	$	11.78	​	$	11.73	​	$	11.94	​	$	12.42	​	$	12.46	​
High during quarter ended	​	$	12.07	​	$	13.23	​	$	12.48	​	$	13.55	​	$	13.57	​
Low during quarter ended	​	$	10.15	​	$	10.48	​	$	10.68	​	$	11.90	​	$	10.25	​
Common dividends per share	​	$	—	​	$	—	​	$	—	​	$	—	​	$	—	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Common Shares & Units	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Common shares outstanding	​	​	215,668	​	​	219,334	​	​	219,334	​	​	219,043	​	​	216,175	​
Units outstanding	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​
Total common shares and units outstanding	​	​	215,668	​	​	219,334	​	​	219,334	​	​	219,043	​	​	216,175	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Capitalization ****	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Market value of common equity	​	$	2,540,568	​	$	2,572,785	​	$	2,618,845	​	$	2,720,515	​	$	2,693,542	​
Liquidation value of preferred equity - Series E	​	​	—	​	​	—	​	​	—	​	​	—	​	​	115,000	​
Liquidation value of preferred equity - Series F	​	​	—	​	​	—	​	​	—	​	​	75,000	​	​	75,000	​
Liquidation value of preferred equity - Series G	​	​	66,250	​	​	66,250	​	​	66,250	​	​	66,250	​	​	—	​
Liquidation value of preferred equity - Series H	​	​	115,000	​	​	115,000	​	​	115,000	​	​	115,000	​	​	—	​
Liquidation value of preferred equity - Series I	​	​	100,000	​	​	100,000	​	​	100,000	​	​	—	​	​	—	​
Consolidated debt	​	​	575,934	​	​	611,437	​	​	745,484	​	​	746,303	​	​	747,113	​
Consolidated total capitalization	​	​	3,397,752	​	​	3,465,472	​	​	3,645,579	​	​	3,723,068	​	​	3,630,655	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Noncontrolling interest in consolidated debt	​	​	(55,000)	​	​	(55,000)	​	​	(55,000)	​	​	(55,000)	​	​	(55,000)	​
Pro rata total capitalization	​	$	3,342,752	​	$	3,410,472	​	$	3,590,579	​	$	3,668,068	​	$	3,575,655	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Consolidated debt to consolidated total capitalization	​	​	17.0	%	​	17.6	%	​	20.4	%	​	20.0	%	​	20.6	%
Pro rata debt to pro rata total capitalization	​	​	15.6	%	​	16.3	%	​	19.2	%	​	18.8	%	​	19.4	%
Consolidated debt and preferred equity to consolidated total capitalization	​	​	25.2	%	​	25.8	%	​	28.2	%	​	26.9	%	​	25.8	%
Pro rata debt and preferred equity to pro rata total capitalization	​	​	24.0	%	​	24.6	%	​	27.1	%	​	25.8	%	​	24.7	%

​

​

​

​

​

​

​

​

	​
CAPITALIZATION		​	Page 21
​		​	​

​ ​

​

Supplemental Financial Information May 4, 2022

Consolidated Debt Summary Schedule

​

​	​	​	​	​	​	​	​	​	​	​	​	​
(In thousands)	​	​	​	Interest Rate /	​	Maturity	​	​	March 31, 2022	​	​	Balance At
Debt	****	Collateral	****	Spread	****	Date (5)		​	Balance		​	Maturity
​	​	​	​	​	​	​	​	​	​	​	​	​
Fixed Rate Debt	​	​	​	​	​	​	​	​	​	​	​	​
Term Loan Facility (1)	​	Unsecured	​	3.94%	​	09/03/2023	​	$	19,400	​	$	19,400
Term Loan Facility (1)	​	Unsecured	​	4.20%	​	01/31/2024	​	​	88,900	​	​	88,900
Secured Mortgage Debt	​	JW Marriott New Orleans	​	4.15%	​	12/11/2024	​	​	77,634	​	​	72,071
Series A Senior Notes (2)	​	Unsecured	​	5.94%	​	01/10/2026	​	​	65,000	​	​	65,000
Series B Senior Notes (2)	​	Unsecured	​	6.04%	​	01/10/2028	​	​	105,000	​	​	105,000
Total Fixed Rate Debt	​	​	​	​	​	​	​	​	355,934	​	​	350,371
Variable Rate Debt	​	​	​	​	​	​	​	​	​	​	​	​
Secured Mortgage Debt	​	Hilton San Diego Bayfront	​	1.17%	​	12/09/2023	​	​	220,000	​	​	220,000
Credit Facility (1)	​	Unsecured	​	L + 2.40%	​	04/14/2024	​	​	—	​	​	—
Total Variable Rate Debt	​	​	​	​	​	​	​	​	220,000	​	​	220,000
​	​	​	​	​	​	​	​	​	​	​	​	​
TOTAL CONSOLIDATED DEBT	​	​	​	​	​	​	​	$	575,934	​	$	570,371
​	​	​	​	​	​	​	​	​	​	​	​	​
Preferred Stock	​	​	​	​	​	​	​	​	​	​	​	​
Series G cumulative redeemable preferred (3)	​	​	​	Variable	​	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 Statistics	​	​	​	​	​	​	​	​	​	​	​	​
% Fixed Rate Debt	​	​	​	​	​	​	​	​	61.8	%	​	​
% Floating Rate Debt	​	​	​	​	​	​	​	​	38.2	%	​	​
Average Interest Rate (4)	​	​	​	​	​	​	​	​	3.56	%	​	​
Weighted Average Maturity of Debt (5)	​	​	​	​	​	​	​	​	2.8 years	​	​	​
(1)	As of March 31, 2022, the applicable LIBOR margin was fixed at 240 basis points for the revolving credit facility and 235 basis points for the term loan facilities. Upon the termination of the Covenant Threshold Adjustment Period as described in the Company’s unsecured debt amendments, the applicable margin will return to a variable rate of 140 to 225 basis points for the revolving credit facility and 135 to 220 for the term loan facilities as determined by the Company’s leverage ratios. The interest rates presented reflect the terms of the unsecured debt amendments and the effects of the Company’s interest rate derivative agreements.
---	---
(2)	The 2020 and 2021 amendments to the Company's unsecured debt agreements increased the annual interest rates on the Senior Notes by 1.25% through September 30, 2022. Thereafter, the increased interest rates will step down on a quarterly basis to their original stated rates based on the achievement of certain leverage ratios. The interest rates presented reflect the terms of the unsecured debt amendments as of March 31, 2022.
---	---
(3)	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. During the first quarter of 2022, this equated to a cash dividend of $0.221475 per share. The annual dividend rate is expected to increase in 2023 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.
---	---
(4)	Average Interest Rate is calculated based on rates at March 31, 2022, and includes the effect of the Company's interest rate derivative agreements.
---	---
(5)	Maturity Date assumes the exercise of all available extensions of the revolving credit facility, term loans and the loan secured by the Hilton San Diego Bayfront. By extending these loans, the Company's weighted average maturity of debt increases from 2.3 years to 2.8 years.
---	---

​

​

​

	​
CAPITALIZATION		​	Page 22
​		​	​

​

​ ​

​

Supplemental Financial Information May 4, 2022

​

PROPERTY-LEVEL DATA AND OPERATING STATISTICS

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

	​
PROPERTY-LEVEL DATA AND OPERATING STATISTICS		​	Page 23
​		​	​

​ ​

​

Supplemental Financial Information May 4, 2022

Hotel Information as of May 4, 2022

​

​

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Hotel			****	Location	****	Brand	****	Number of Rooms	****	% of Total Rooms	****	Interest	****	Year Acquired
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
1		Hilton San Diego Bayfront (1) (2)	​	California	​	Hilton	​	1,190	​	16.09%	​	Leasehold	​	2011
2	​	Boston Park Plaza	​	Massachusetts	​	Independent	​	1,060	​	14.33%	​	Fee Simple	​	2013
3	​	Hyatt Regency San Francisco	​	California	​	Hyatt	​	821	​	11.10%	​	Fee Simple	​	2013
4	​	Renaissance Washington DC	​	Washington DC	​	Marriott	​	807	​	10.91%	​	Fee Simple	​	2005
5	​	Renaissance Orlando at SeaWorld®	​	Florida	​	Marriott	​	781	​	10.56%	​	Fee Simple	​	2005
6	​	Wailea Beach Resort	​	Hawaii	​	Marriott	​	547	​	7.40%	​	Fee Simple	​	2014
7	​	JW Marriott New Orleans (3)	​	Louisiana	​	Marriott	​	501	​	6.77%	​	Fee Simple	​	2011
8	​	Marriott Boston Long Wharf	​	Massachusetts	​	Marriott	​	415	​	5.61%	​	Fee Simple	​	2007
9	​	Renaissance Long Beach	​	California	​	Marriott	​	374	​	5.06%	​	Fee Simple	​	2005
10	​	The Bidwell Marriott Portland	​	Oregon	​	Marriott	​	258	​	3.49%	​	Fee Simple	​	2000
11	​	Hilton New Orleans St. Charles	​	Louisiana	​	Hilton	​	252	​	3.41%	​	Fee Simple	​	2013
12	​	Oceans Edge Resort & Marina	​	Florida	​	Independent	​	175	​	2.37%	​	Fee Simple	​	2017
13	​	Montage Healdsburg	​	California	​	Montage	​	130	​	1.76%	​	Fee Simple	​	2021
14	​	Four Seasons Resort Napa Valley (4)	​	California	​	Four Seasons	​	85	​	1.15%	​	Fee Simple	​	2021
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Total 14 Hotel Portfolio	​	​	​	​	​	7,396	​	100%	​	​	​	​

​

(1)	The Company owns 75% of the joint venture that owns the Hilton San Diego Bayfront.
(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 fronting Canal Street that is not integral to the hotel’s operations.
---	---
(4)	The number of rooms at the Four Seasons Resort Napa Valley excludes four additional rooms provided by owners of the separately owned Four Seasons Private Residences Napa Valley who elected to participate in the residential rental program during the first quarter of 2022.
---	---

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

	​
PROPERTY-LEVEL DATA AND OPERATING STATISTICS		​	Page 24
​		​	​

​

​ ​

​

Supplemental Financial Information May 4, 2022

Property-Level Operating Statistics

ADR, Occupancy and RevPAR

Q1 2022/2021/2019

​

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	ADR										​	Occupancy							​	​	RevPAR
​	​	Hotels sorted by number of rooms	​	For the Quarter Ended March 31,										​	For the Quarter Ended March 31,							​	For the Quarter Ended March 31,
​	​	​		2022		​	****	2021	​	​	2019	****	2022 vs. 2019		2022	****	2021	​	2019	****	2022 vs. 2019		2022		****	2021		​	​	2019	****	2022 vs. 2019
1	​	Hilton San Diego Bayfront (3)	​	$	249.03	​	$	141.47	​	$	257.17	​	(3.2)%	​	58.4%	​	16.1%	​	75.4%	​	(22.5)%	​	$	145.43	​	$	22.78	​	$	193.91	​	(25.0)%
2	​	Boston Park Plaza	​	$	160.35	​	$	140.65	​	$	155.36	​	3.2%	​	48.3%	​	15.3%	​	80.8%	​	(40.2)%	​	$	77.45	​	$	21.52	​	$	125.53	​	(38.3)%
3	​	Hyatt Regency San Francisco	​	$	221.87	​	$	193.28	​	$	353.37	​	(37.2)%	​	44.0%	​	8.9%	​	84.2%	​	(47.7)%	​	$	97.62	​	$	17.20	​	$	297.54	​	(67.2)%
4	​	Renaissance Washington DC	​	$	230.36	​	$	142.23	​	$	242.86	​	(5.1)%	​	38.7%	​	53.2%	​	73.5%	​	(47.3)%	​	$	89.15	​	$	75.67	​	$	178.50	​	(50.1)%
5	​	Renaissance Orlando at SeaWorld®	​	$	211.24	​	$	124.87	​	$	197.30	​	7.1%	​	60.5%	​	19.3%	​	83.8%	​	(27.8)%	​	$	127.80	​	$	24.10	​	$	165.34	​	(22.7)%
6	​	Wailea Beach Resort	​	$	663.49	​	$	531.17	​	$	496.33	​	33.7%	​	79.3%	​	34.7%	​	92.8%	​	(14.5)%	​	$	526.15	​	$	184.32	​	$	460.59	​	14.2%
7	​	JW Marriott New Orleans	​	$	239.61	​	$	145.40	​	$	226.85	​	5.6%	​	49.9%	​	23.5%	​	86.4%	​	(42.2)%	​	$	119.57	​	$	34.17	​	$	196.00	​	(39.0)%
8	​	Marriott Boston Long Wharf	​	$	271.14	​	$	231.39	​	$	231.95	​	16.9%	​	38.6%	​	9.9%	​	78.5%	​	(50.8)%	​	$	104.66	​	$	22.91	​	$	182.08	​	(42.5)%
9	​	Renaissance Long Beach	​	$	201.92	​	$	134.05	​	$	192.79	​	4.7%	​	70.4%	​	27.5%	​	82.7%	​	(14.9)%	​	$	142.15	​	$	36.86	​	$	159.44	​	(10.8)%
10	​	The Bidwell Marriott Portland	​	$	146.26	​	$	139.65	​	$	162.13	​	(9.8)%	​	37.1%	​	9.9%	​	79.0%	​	(53.0)%	​	$	54.26	​	$	13.83	​	$	128.08	​	(57.6)%
11		Hilton New Orleans St. Charles	​	$	187.72	​	$	107.89	​	$	189.41	​	(0.9)%	​	42.8%	​	23.6%	​	79.6%	​	(46.2)%	​	$	80.34	​	$	25.46	​	$	150.77	​	(46.7)%
12	​	Oceans Edge Resort & Marina	​	$	546.87	​	$	380.69	​	$	313.20	​	74.6%	​	85.9%	​	77.2%	​	95.0%	​	(9.6)%	​	$	469.76	​	$	293.89	​	$	297.54	​	57.9%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	12 Hotel Portfolio (1)	​	$	279.95	​	$	206.44	​	$	255.01	​	9.8%	​	53.1%	​	23.4%	​	81.3%	​	(34.7)%	​	$	148.65	​	$	48.31	​	$	207.32	​	(28.3)%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
13	​	Montage Healdsburg	​	$	897.96	​	$	875.29	​	​	N/A	​	N/A	​	49.5%	​	20.4%	​	N/A	​	N/A	​	$	444.49	​	$	178.56	​	​	N/A	​	N/A
14	​	Four Seasons Resort Napa Valley	​	$	1,440.70	​	​	N/A	​	​	N/A	​	N/A	​	44.3%	​	N/A	​	N/A	​	N/A	​	$	638.23	​	​	N/A	​	​	N/A	​	N/A
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	14 Hotel Portfolio (2)	​	$	301.44	​	​	​	​	​	​	​	​	​	53.0%	​	​	​	​	​	​	​	$	159.76	​	​	​	​	​	​	​	​

​

*Footnotes on page 27

​

​

​

​

​

​

​

​

​

	​
PROPERTY-LEVEL DATA AND OPERATING STATISTICS		​	Page 25
​		​	​

​ ​

​

Supplemental Financial Information May 4, 2022

Property-Level Operating Statistics

Total RevPAR (TRevPAR)

Q1 2022/2021/2019

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Hotels sorted by number of rooms	​	For the Quarter Ended March 31,
​	​	​		2022		​	2021		​	****	2019	****	2022 vs. 2019
1	​	Hilton San Diego Bayfront (3)	​	$	260.54	​	$	36.92	​	$	342.52	​	(23.9)%
2	​	Boston Park Plaza	​	$	108.79	​	$	28.47	​	$	187.22	​	(41.9)%
3	​	Hyatt Regency San Francisco	​	$	148.33	​	$	22.31	​	$	431.11	​	(65.6)%
4	​	Renaissance Washington DC	​	$	134.53	​	$	80.46	​	$	287.71	​	(53.2)%
5	​	Renaissance Orlando at SeaWorld®	​	$	277.95	​	$	51.08	​	$	365.82	​	(24.0)%
6	​	Wailea Beach Resort	​	$	755.26	​	$	249.00	​	$	643.28	​	17.4%
7	​	JW Marriott New Orleans	​	$	153.99	​	$	42.86	​	$	260.19	​	(40.8)%
8	​	Marriott Boston Long Wharf	​	$	156.76	​	$	32.94	​	$	270.27	​	(42.0)%
9	​	Renaissance Long Beach	​	$	185.61	​	$	47.53	​	$	225.53	​	(17.7)%
10	​	The Bidwell Marriott Portland	​	$	76.79	​	$	18.19	​	$	148.89	​	(48.4)%
11		Hilton New Orleans St. Charles	​	$	137.51	​	$	32.89	​	$	170.95	​	(19.6)%
12	​	Oceans Edge Resort & Marina	​	$	636.70	​	$	422.14	​	$	427.43	​	49.0%
​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	12 Hotel Portfolio (1)	​	$	231.64	​	$	65.90	​	$	322.05	​	(28.1)%
​	​	​	​	​	​	​	​	​	​	​	​	​	​
13	​	Montage Healdsburg	​	$	785.67	​	$	307.47	​	​	N/A	​	N/A
14	​	Four Seasons Resort Napa Valley	​	$	1,098.81	​	​	N/A	​	​	N/A	​	N/A
​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	14 Hotel Portfolio (2)	​	$	251.50	​	​	​	​	​	​	​	​

*Footnotes on page 27

​

​

​

​

​

​

​

​

​

​

​

​

	​
PROPERTY-LEVEL DATA AND OPERATING STATISTICS		​	Page 26
​		​	​

​ ​

​

Supplemental Financial Information May 4, 2022

Property-Level Operating Statistics

Q1 2022/2021/2019 Footnotes

​

(1)	12 Hotel Portfolio includes the same hotels owned during first quarters of 2022, 2021 and 2019.
(2)	14 Hotel Portfolio includes all hotels owned by the Company as of March 31, 2022. The Company acquired the Montage Healdsburg and the Four Seasons Resort Napa Valley in April 2021 and December 2021, respectively. The newly-developed hotels opened on limited bases in December 2020 and October 2021, respectively. Operating statistics for the first quarter of 2021 include prior ownership results obtained by the Company from the prior owner of the Montage Healdsburg 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)	Operating statistics for the first quarter of 2019 are impacted by a room renovation at the Hilton San Diego Bayfront.
---	---

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

	​
PROPERTY-LEVEL DATA AND OPERATING STATISTICS		​	Page 27
​		​	​

​

​

​ ​

​ ​

​

​

​

Supplemental Financial Information May 4, 2022

​

PROPERTY-LEVEL ADJUSTED EBITDAre &

ADJUSTED EBITDAre MARGINS

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

	​
PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS		​	Page 28
​		​	​

​ ​

​

Supplemental Financial Information May 4, 2022

Property-Level Adjusted EBITDAre and Adjusted EBITDAre Margins

Q1 2022/2021

​

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Hotels sorted by number of rooms	​	For the Quarter Ended March 31,
​	​	​	​	2022							​	2021							​	​
​	​	(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
1	​	Hilton San Diego Bayfront	​	$	27,904	​	$	8,079	​	29.0%	​	$	3,955	​	$	(4,304)	​	(108.8)%	​	126.7%
2	​	Boston Park Plaza	​	​	10,378	​	​	(2,220)	​	(21.4)%	​	​	2,716	​	​	(3,817)	​	(140.5)%	​	84.8%
3	​	Hyatt Regency San Francisco	​	​	10,960	​	​	(1,175)	​	(10.7)%	​	​	1,649	​	​	(4,098)	​	(248.5)%	​	95.7%
4	​	Renaissance Washington DC	​	​	9,771	​	​	120	​	1.2%	​	​	5,843	​	​	1,614	​	27.6%	​	(95.7)%
5	​	Renaissance Orlando at SeaWorld®	​	​	19,537	​	​	6,803	​	34.8%	​	​	3,590	​	​	(1,284)	​	(35.8)%	​	197.2%
6	​	Wailea Beach Resort	​	​	37,183	​	​	16,005	​	43.0%	​	​	12,259	​	​	3,601	​	29.4%	​	46.3%
7	​	JW Marriott New Orleans	​	​	6,943	​	​	2,248	​	32.4%	​	​	1,933	​	​	(542)	​	(28.0)%	​	215.7%
8	​	Marriott Boston Long Wharf	​	​	5,855	​	​	(608)	​	(10.4)%	​	​	1,230	​	​	(2,066)	​	(168.0)%	​	93.8%
9	​	Renaissance Long Beach	​	​	6,248	​	​	1,870	​	29.9%	​	​	1,600	​	​	(368)	​	(23.0)%	​	230.0%
10	​	The Bidwell Marriott Portland	​	​	1,783	​	​	(10)	​	(0.6)%	​	​	422	​	​	(755)	​	(178.9)%	​	99.7%
11		Hilton New Orleans St. Charles	​	​	3,119	​	​	1,415	​	45.4%	​	​	746	​	​	(307)	​	(41.2)%	​	210.2%
12	​	Oceans Edge Resort & Marina	​	​	10,028	​	​	4,926	​	49.1%	​	​	6,649	​	​	2,945	​	44.3%	​	10.8%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	12 Hotel Portfolio (1)	​	​	149,709	​	​	37,453	​	25.0%	​	​	42,592	​	​	(9,381)	​	(22.0)%	​	213.6%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
13	​	Montage Healdsburg	​	​	9,192	​	​	(822)	​	(8.9)%	​	​	—	​	​	—	​	—	​	—
14	​	Four Seasons Resort Napa Valley	​	​	8,542	​	​	308	​	3.6%	​	​	—	​	​	—	​	—	​	—
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	14 Hotel Portfolio (2)	​	​	167,443	​	​	36,939	​	22.1%	​	​	42,592	​	​	(9,381)	​	(22.0)%	​	200.5%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Add: Sold Hotels (3)	​	​	3,234	​	​	(2,172)	​	(67.2)%	​	​	3,978	​	​	(5,751)	​	(144.6)%	​	53.5%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Actual Portfolio (4)	​	$	170,677	​	$	34,767	​	20.4%	​	$	46,570	​	$	(15,132)	​	(32.5)%	​	162.8%

​

*Footnotes on page 31

​

​

​

​

​

​

​

​

	​
PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS		​	Page 29
​		​	​

​ ​

​

Supplemental Financial Information May 4, 2022

Property-Level Adjusted EBITDAre and Adjusted EBITDAre Margins

Q1 2022/2019

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Hotels sorted by number of rooms	​	For the Quarter Ended March 31,
​	​	​	​	2022							​	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
1	​	Hilton San Diego Bayfront (5)	​	$	27,904	​	$	8,079	​	29.0%	​	$	36,686	​	$	10,911	​	29.7%	​	(2.4)%
2	​	Boston Park Plaza	​	​	10,378	​	​	(2,220)	​	(21.4)%	​	​	17,860	​	​	1,269	​	7.1%	​	(401.4)%
3	​	Hyatt Regency San Francisco	​	​	10,960	​	​	(1,175)	​	(10.7)%	​	​	31,197	​	​	8,854	​	28.4%	​	(137.7)%
4	​	Renaissance Washington DC	​	​	9,771	​	​	120	​	1.2%	​	​	20,896	​	​	5,587	​	26.7%	​	(95.5)%
5	​	Renaissance Orlando at SeaWorld®	​	​	19,537	​	​	6,803	​	34.8%	​	​	25,713	​	​	10,224	​	39.8%	​	(12.6)%
6	​	Wailea Beach Resort	​	​	37,183	​	​	16,005	​	43.0%	​	​	31,669	​	​	13,219	​	41.7%	​	3.1%
7	​	JW Marriott New Orleans	​	​	6,943	​	​	2,248	​	32.4%	​	​	11,732	​	​	5,423	​	46.2%	​	(29.9)%
8	​	Marriott Boston Long Wharf	​	​	5,855	​	​	(608)	​	(10.4)%	​	​	10,094	​	​	1,589	​	15.7%	​	(166.2)%
9	​	Renaissance Long Beach	​	​	6,248	​	​	1,870	​	29.9%	​	​	7,591	​	​	2,415	​	31.8%	​	(6.0)%
10	​	The Bidwell Marriott Portland	​	​	1,783	​	​	(10)	​	(0.6)%	​	​	3,337	​	​	1,040	​	31.2%	​	(101.9)%
11		Hilton New Orleans St. Charles	​	​	3,119	​	​	1,415	​	45.4%	​	​	3,877	​	​	1,166	​	30.1%	​	50.8%
12	​	Oceans Edge Resort & Marina	​	​	10,028	​	​	4,926	​	49.1%	​	​	6,732	​	​	2,743	​	40.7%	​	20.6%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	12 Hotel Portfolio (1)	​	​	149,709	​	​	37,453	​	25.0%	​	​	207,384	​	​	64,440	​	31.1%	​	(19.6)%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
13	​	Montage Healdsburg	​	​	9,192	​	​	(822)	​	(8.9)%	​	​	—	​	​	—	​	—	​	—
14	​	Four Seasons Resort Napa Valley	​	​	8,542	​	​	308	​	3.6%	​	​	—	​	​	—	​	—	​	—
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	14 Hotel Portfolio (2)	​	​	167,443	​	​	36,939	​	22.1%	​	​	207,384	​	​	64,440	​	31.1%	​	(28.9)%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Add: Sold/Disposed Hotels (3)	​	​	3,234	​	​	(2,172)	​	(67.2)%	​	​	50,273	​	​	3,428	​	6.8%	​	(1,088.2)%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Actual Portfolio (4)	​	$	170,677	​	$	34,767	​	20.4%	​	$	257,657	​	$	67,868	​	26.3%	​	(22.4)%

​

*Footnotes on page 31

​

​

​

​

​

​

​

​

​

​

	​
PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS		​	Page 30
​		​	​

​ ​

​

Supplemental Financial Information May 4, 2022

Property-Level Adjusted EBITDAre and Adjusted EBITDAre Margins

Q1 2022/2021/2019 Footnotes

​

​

(1)	12 Hotel Portfolio includes the same hotels owned during the first quarters of 2022, 2021 and 2019.
(2)	14 Hotel Portfolio includes all hotels owned by the Company as of March 31, 2022. The Company acquired the Montage Healdsburg and the Four Seasons Resort Napa Valley in April 2021 and December 2021, respectively. The newly-developed hotels opened on limited bases in December 2020 and October 2021, respectively, therefore there is no comparative prior year information.
---	---
(3)	Sold Hotels for the first quarter of 2022 includes results for the Hyatt Centric Chicago Magnicent Mile, sold in February 2022, and the Embassy Suites Chicago and Hilton Garden Inn Chicago Downtown/Magnificent Mile, sold in March 2022. Sold Hotels for the first quarter of 2021 also includes results for the Embassy Suites La Jolla and the Renaissance Westchester, sold in December 2021 and October 2021, respectively. Sold/Disposed Hotels for the first quarter of 2019 also includes results for the 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.
---	---
(4)	Actual Portfolio includes results for 17 hotels, 17 hotels and 21 hotels owned by the Company during the quarters ended March 31, 2022, 2021 and 2019, respectively.
---	---
(5)	Hotel Adjusted EBITDAre for the first quarter of 2019 is impacted by a room renovation at the Hilton San Diego Bayfront.
---	---

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

	​
PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS		​	Page 31
​		​	​

​ ​