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): August 4, 2020

Sunstone Hotel Investors, Inc.

(Exact Name of Registrant as Specified in Its Charter)

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

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200 Spectrum Center Drive , 21^st^ Floor Irvine , California		92618
(Address of Principal Executive Offices)		(Zip Code)

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( 949 ) 330-4000

(Registrant’s telephone number including area code)

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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:

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☐	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))

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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 E Cumulative Redeemable Preferred Stock, $0.01 par value	SHO.PRE	New York Stock Exchange
Series F Cumulative Redeemable Preferred Stock, $0.01 par value	SHO.PRF	New York Stock Exchange

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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).

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​	Emerging growth company	☐

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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.  ◻

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Item 2.02.Results of Operations and Financial Condition.

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On August 4, 2020, Sunstone Hotel Investors, Inc. (the “Company”) issued a press release regarding its financial results for the second quarter ended June 30, 2020. 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.

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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.

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Item 9.01.Financial Statements and Exhibits.

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(d) The following exhibits are furnished herewith:

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EXHIBIT INDEX

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Exhibit No.	****	Description
99.1	​	Press Release, dated August 4, 2020.
99.2	​	Supplemental Financial Information for the second quarter ended June 30, 2020.
104	​	Cover Page Interactive Data File (embedded within the Inline XBRL document).

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​ 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.

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​		Sunstone Hotel Investors, Inc.
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Date: August 4, 2020	​	By:	/s/ Bryan A. Giglia
​	​	​	Bryan A. Giglia(Principal Financial Officer and Duly Authorized Officer)
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Exhibit 99.1

For Additional Information:

Bryan Giglia

Sunstone Hotel Investors, Inc.

(949) 382-3036

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Aaron Reyes

Sunstone Hotel Investors, Inc.

(949) 382-3018

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SUNSTONE HOTEL INVESTORS REPORTS RESULTS FOR SECOND QUARTER 2020

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IRVINE, CA – August 4, 2020 – Sunstone Hotel Investors, Inc. (the “Company” or “Sunstone”) (NYSE: SHO), the owner of Long-Term Relevant Real Estate® in the hospitality sector, today announced results for the second quarter ended June 30, 2020.

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Second Quarter 2020 Operational Results (as compared to Second Quarter 2019):

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●	Net (Loss) Income: Net loss was $117.5 million as compared to net income of $45.9 million in the second quarter of 2019. Excluding the impairment loss recognized during the second quarter of 2020, net loss would have been $99.4 million.
●	20 Hotel Portfolio RevPAR: 20 Hotel Portfolio RevPAR decreased 98.1% to $3.99.
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●	20 Hotel Portfolio Adjusted EBITDAre Margin: 20 Hotel Portfolio Adjusted EBITDAre Margin, excluding prior year property tax adjustments, net decreased 58,280 basis points to (548.5)%.
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●	Adjusted EBITDAre**:** Adjusted EBITDAre, excluding noncontrolling interest decreased 147.4% to $(47.0) million.
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●	Adjusted FFO: Adjusted FFO attributable to common stockholders per diluted share decreased 186.1% to $(0.31).
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Information regarding the non-GAAP financial measures disclosed in this release is provided below in “Non-GAAP Financial Measures.” Reconciliations of non-GAAP financial measures to the most comparable GAAP measure for each of the periods presented are included later in this release.

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John Arabia, President and Chief Executive Officer, stated, “After suspending operations at 15 of our 19 hotels as a result of the global pandemic, we are pleased to report we are methodically resuming operations at our hotels. In June and July, six properties resumed operations and we plan for more to open in both August and September. The hotels that continued operations, in aggregate, have posted sequential occupancy gains in May, June and July, despite a recent resurgence in national COVID cases, and have reduced their operating losses. The hotels that have recently resumed operations, in aggregate, have quickly met or exceeded our resumption occupancy thresholds and are slowly recovering. As a result of these factors and our ability to aggressively reduce operating expenses during the second quarter, our second quarter losses were lower than we anticipated and our estimate of our monthly cash burn rate has been reduced.”

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“Despite having to navigate through the most challenging operating environment the economy and our industry has ever faced, we recently completed two transactions that further strengthen our balance sheet and provide additional liquidity and financial flexibility. First, we sold the Renaissance Harborplace, and as a result, further consolidated our portfolio into Long-Term Relevant Real Estate and increased our liquidity by approximately $80 million. Additionally, we finalized amendments to all outstanding unsecured debt, providing a covenant holiday through the first quarter of 2021. We believe our significant liquidity not only provides us with the ability to weather this unprecedented storm, but also positions the Company to take advantage of external growth opportunities that we believe will materialize over the coming quarters.”

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

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​	Quarter Ended June 30,							​	​	Six Months Ended June 30,							​
​	2020		****	2019		****	Change	​	​	2020		​	2019		​	Change	​
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Net (Loss) Income	$	(117.5)	​	$	45.9	​	(355.9)	%	​	$	(280.0)	​	$	63.8	​	(538.7)	%
(Loss) Income Attributable to Common Stockholders per Diluted Share	$	(0.55)	​	$	0.18	​	(405.6)	%	​	$	(1.30)	​	$	0.24	​	(641.7)	%
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20 Hotel Portfolio RevPAR (1)	$	3.99	​	$	213.88	​	(98.1)	%	​	$	67.96	​	$	195.79	​	(65.3)	%
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20 Hotel Portfolio Occupancy (1)	​	3.7	%	​	87.3	%	(8,360)	bps	​	​	31.9	%	​	83.1	%	(5,120)	bps
20 Hotel Portfolio ADR (1)	$	107.78	​	$	244.99	​	(56.0)	%	​	$	213.03	​	$	235.61	​	(9.6)	%
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20 Hotel Portfolio Adjusted EBITDAre Margin (1) (2)	​	(548.5)	%	​	34.3	%	(58,280)	bps	​	​	(12.9)	%	​	30.7	%	(4,360)	bps
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Adjusted EBITDAre, excluding noncontrolling interest	$	(47.0)	​	$	99.1	​	(147.4)	%	​	$	(32.9)	​	$	163.6	​	(120.1)	%
Adjusted FFO Attributable to Common Stockholders	$	(65.6)	​	$	81.7	​	(180.2)	%	​	$	(67.0)	​	$	129.2	​	(151.8)	%
Adjusted FFO Attributable to Common Stockholders per Diluted Share	$	(0.31)	​	$	0.36	​	(186.1)	%	​	$	(0.31)	​	$	0.57	​	(154.4)	%

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(1)	The 20 Hotel Portfolio (the “20 Hotels”) includes all hotels owned by the Company as of June 30, 2020. In July 2020, the Company sold the Renaissance Harborplace, leaving 19 hotels (the “19 Hotels”) held for investment.
(2)	The 20 Hotel Portfolio Adjusted EBITDAre Margins exclude any prior year property tax adjustments, net.
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Recent Developments

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COVID-19: Due to the prevailing government mandated restrictions on travel and public gatherings since the outbreak of COVID-19, the Company temporarily suspended operations at 15 of the 20 Hotels during the first six months of 2020. In response to this challenging environment, the Company, working with its operators, has developed and implemented protocols to safely and responsibly resume operations at its hotels, including frequent and enhanced cleaning and sanitation, contactless check in, and increased physical distancing throughout the hotels. As of the date of this release, the Company has resumed operations at six of its previously suspended hotels, one in June 2020, and five in July 2020 (see table below).

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After reaching a trough in April, the Company began to see hotel demand slightly improve in May and June, most significantly in leisure travel, which benefited its hotels in drive-to leisure markets such as the Embassy Suites La Jolla, the Renaissance Long Beach and the Oceans Edge Resort & Marina. The Company also experienced a modest demand increase at its hotels in certain urban markets after resuming operations in Boston, Chicago and New Orleans. In July 2020, however, hotel demand moderated as COVID-19 cases surged and some areas began to re-implement mandatory shelter-in-place orders and the shutdown of nonessential businesses. The Company currently believes that the majority of its group business for 2020 has cancelled or will eventually cancel. Of the group business that has cancelled to date, approximately 23% has rebooked into future periods.

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During the second quarter and first six months of 2020, the Company incurred $7.5 million and $17.6 million, respectively, of additional wages and benefits for furloughed or laid off hotel employees, which included $1.1 million in severance accrued in the second quarter of 2020. Due to the temporary suspension of operations at certain hotels in the portfolio and the incurrence of various extraordinary and non-recurring items, comparisons between the financial results for the second quarter and first six months of 2020 to the second quarter and first six months of 2019 are not meaningful.

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Credit Facility and Unsecured Debt Amendments: On July 15, 2020, the Company completed amendments to the agreements governing its in-place unsecured debt, including the revolving credit facility, term loan facilities and private placement senior notes, which provide covenant relief through the end of the first quarter of 2021, with the first quarterly covenant test being required as of the period ended June 30, 2021.

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Capital Investments: During the second quarter of 2020, the Company took advantage of the suspended operations and the low demand environment to perform otherwise extremely disruptive capital projects at the Renaissance Orlando at SeaWorld®, the Renaissance Washington DC and the Marriott Portland, all while adhering to the relevant government regulations and social distancing mandates aimed at both protecting those involved in the construction work and stemming the spread of COVID-19. At the Renaissance Orlando at SeaWorld®, the hotel’s closure allowed the Company to demolish and redesign the hotel’s atrium and lobby. At the Renaissance Washington DC, the Company remodeled the porte-cochere, which will improve traffic flow and the guest’s arrival experience. Additionally, at the Renaissance Washington DC, the Company replaced the escalators that connect all levels of 2

the hotel’s meeting space with the lobby, a project that would not be possible with group business in the hotel. At the Marriott Portland, the Company took advantage of the hotel’s closure by completely remodeling the guest rooms, gym, meeting rooms, public space and the M Club. In addition, a majority of the guestroom baths were converted to showers, and seven new guestrooms will be added. The Company expects to complete these capital projects at the three hotels during the third quarter of 2020.

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Hotel Disposition: On July 7, 2020 the Company sold the Renaissance Harborplace for a gross sale price of $80.0 million. In anticipation of this sale, the Company recorded an impairment loss of $18.1 million based on the expected proceeds to be received less estimated selling costs. Subject to the terms of the Company’s amended unsecured debt agreements, the Company may use the net proceeds to acquire a hotel or to repay a portion of its unsecured debt.

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Balance Sheet/Liquidity Update

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As of June 30, 2020, the Company had $586.4 million of cash and cash equivalents, including restricted cash of $46.0 million, total assets of $3.4 billion, including $2.6 billion of net investments in hotel properties, total consolidated debt of $1.0 billion and stockholders’ equity of $2.2 billion.

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As of August 4, 2020, the Company has $50.0 million outstanding on its $500.0 million unsecured credit facility.

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2020 Operations Update

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As of August 4, 2020, operations continue to be temporarily suspended at nine of the Company’s 19 Hotels as follows:

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Hotel	​	Suspension Date	​	Resumption Date
Marriott Boston Long Wharf	​	March 12, 2020	​	July 7, 2020
Renaissance Orlando at SeaWorld®	​	March 20, 2020	​	​
Hyatt Regency San Francisco	​	March 22, 2020	​	​
Oceans Edge Resort & Marina	​	March 22, 2020	​	June 4, 2020
Hilton San Diego Bayfront	​	March 23, 2020	​	​
Wailea Beach Resort	​	March 25, 2020	​	​
Renaissance Washington DC	​	March 26, 2020	​	​
Hilton Garden Inn Chicago Downtown/Magnificent Mile	​	March 27, 2020	​	​
Marriott Portland	​	March 27, 2020	​	​
Hilton New Orleans St. Charles	​	March 28, 2020	​	July 13, 2020
JW Marriott New Orleans	​	March 28, 2020	​	July 14, 2020
Embassy Suites Chicago	​	April 1, 2020	​	July 1, 2020
Renaissance Westchester	​	April 4, 2020	​	​
Hyatt Centric Chicago Magnificent Mile	​	April 6, 2020	​	July 13, 2020
Hilton Times Square	​	June 30, 2020	​	​

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The hotels that were in operation for the entire month of July (the “Six Open Hotels”) were: Boston Park Plaza, Embassy Suites Chicago, Embassy Suites La Jolla, Oceans Edge Resort & Marina, Renaissance Long Beach and Renaissance Los Angeles Airport. Preliminary July results include the following ($ in millions, except RevPAR and ADR):

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​	2020 (1)		​	2019		​	Change
19 Hotel Portfolio Room Revenue (2)	$	3.5	​	$	66.5	​	​	(94.7)	%
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19 Hotel Portfolio RevPAR (2)	$	11.32	​	$	214.96	​	​	(94.7)	%
19 Hotel Portfolio Occupancy (2)	​	7.4	%	​	88.6	%	​	(8,120)	bps
19 Hotel Portfolio ADR (2)	$	152.93	​	$	242.62	​	​	(37.0)	%
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6 Open Hotels Room Revenue	$	2.9	​	$	17.3	​	​	(83.2)	%
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6 Open Hotels RevPAR	$	33.10	​	$	197.72	​	​	(83.3)	%
6 Open Hotels Occupancy	​	22.5	%	​	93.2	%	​	(7,070)	bps
6 Open Hotels ADR	$	147.12	​	$	212.15	​	​	(30.7)	%
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(1)	July 2020 results are preliminary and may be adjusted during the Company’s month-end close process.
(2)	The 19 Hotel Portfolio includes all hotels owned by the Company as of July 31, 2020. In addition to the Six Open Hotels, four other hotels were open with reduced operations during various times in July.
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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, and the Company does not intend to provide further updates unless deemed appropriate.

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Dividend Update

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On July 31, 2020, the Company’s Board of Directors declared cash dividends of $0.434375 per share payable to its Series E cumulative redeemable preferred stockholders and $0.403125 per share payable to its Series F cumulative redeemable preferred stockholders. The dividends will be paid on October 15, 2020 to stockholders of record as of September 30, 2020.

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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, long-term operating projections, expected capital requirements, and risks affecting the Company’s business.

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Supplemental Disclosures

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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

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The Company will host a conference call to discuss second quarter 2020 financial results on August 4, 2020, 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, investors may dial 1-334-323-0501 and reference confirmation code 6173021 to listen to the live call. A replay of the webcast will also be archived on the website.

About Sunstone Hotel Investors, Inc.

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Sunstone Hotel Investors, Inc. is a lodging real estate investment trust (“REIT”) that as of the date of this release has interests in 19 hotels comprised of 9,988 rooms. Sunstone’s business is to acquire, own, asset manage and renovate or reposition hotels considered to be Long-Term Relevant Real Estate®, the majority of which are operated under nationally recognized brands, such as Marriott, Hilton and Hyatt. For further information, please visit Sunstone’s website at www.sunstonehotels.com.

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Forward-Looking Statements

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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 on the Company’s business of the COVID-19 global pandemic and the response of governments and the Company to the outbreak; 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, trade conflicts and tariffs between the U.S. and its trading partners, changes in the European Union or global economic slowdown, which may diminish the desire for leisure travel or the need for business travel, as well as any type of flu or disease-related pandemic or the adverse effects of climate change, affecting the lodging and travel industry, internationally, nationally and locally; 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; rising hotel operating costs due to labor costs, workers’ compensation and health-care related costs, including the impact of the Patient Protection and Affordable Care Act or its potential replacement, utility costs, insurance and unanticipated costs such as acts of nature and their consequences and other factors that may not be offset by increased room rates; relationships with, and the requirements and reputation of, the Company’s franchisors and hotel brands; relationships with, and the requirements, performance and reputation of, the managers of the Company’s hotels; the ground, building or airspace leases for four of the 19 Hotels the Company has interests in as of the date of this release; competition for the 4

acquisition of hotels, and the Company’s ability to complete acquisitions and dispositions; performance of hotels after they are acquired; 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; 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; 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 Company’s hotels may become impaired, or 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; 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; 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, including those impacting the Company’s hotel managers or other third parties, and systems integration issues; other events beyond the Company’s control, including natural disasters, terrorist attacks or civil unrest; and other risks and uncertainties associated with our business described in the Company’s filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All 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.

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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.

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Non-GAAP Financial Measures

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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.

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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.

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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.

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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.

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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.

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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:

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Amortization of favorable and unfavorable contracts: we exclude the noncash amortization of the favorable management contract asset recorded in conjunction with our acquisition of the Hilton Garden Inn Chicago Downtown/Magnificent Mile, along with the favorable and unfavorable tenant lease contracts, as applicable, recorded in conjunction with our acquisitions of the Boston Park Plaza, the Hilton Garden Inn Chicago Downtown/Magnificent Mile, the Hyatt Regency San Francisco and the Wailea Beach Resort. We exclude the noncash amortization of favorable and unfavorable contracts because it is based on historical cost accounting and is of lesser significance in evaluating our actual performance for the current period.

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

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●	Acquisition costs: under GAAP, costs associated with completed 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.

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

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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; lease terminations; and property insurance proceeds or uninsured losses.

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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 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. In addition, we exclude the amortization of our right-of-use assets and liabilities 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 expenses recorded on the ground lease at the Courtyard by Marriott Los Angeles (prior to the hotel’s sale in October 2019) and the building lease at the Hyatt Centric Chicago Magnificent Mile. We determined that both of these leases are finance leases, and, therefore, we include a portion of the lease payments each month in interest expense. We adjust EBITDAre for these two finance leases in order to more accurately reflect the actual rent due to both hotels’ lessors in the current period, as well as the operating performance of both hotels. We also exclude the effect of gains and losses on the disposition of undepreciated assets because we believe that including them in Adjusted EBITDAre, 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 obligations, 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 liabilities, 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 6

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

​

​ 7

Sunstone Hotel Investors, Inc.

Consolidated Balance Sheets

(In thousands, except share data)

​

​

​	​	​	​	​	​	​
​	​	June 30,		​	December 31,
	​	2020		****	2019
​	​	(unaudited)		​	​
Assets	​	​	​	​	​	​
Current assets:	​	​	​	​	​	​
Cash and cash equivalents	​	$	540,420	​	$	816,857
Restricted cash	​	​	45,960	​	​	48,116
Accounts receivable, net	​	​	4,448	​	​	35,209
Prepaid expenses and other current assets	​	​	8,026	​	​	13,550
Assets held for sale	​	​	76,683	​	​	—
Total current assets	​	​	675,537	​	​	913,732
​	​	​	​	​	​	​
Investment in hotel properties, net	​	​	2,645,481	​	​	2,872,353
Finance lease right-of-use asset, net	​	​	46,917	​	​	47,652
Operating lease right-of-use assets, net	​	​	40,351	​	​	60,629
Deferred financing costs, net	​	​	2,305	​	​	2,718
Other assets, net	​	​	13,110	​	​	21,890
​	​	​	​	​	​	​
Total assets	​	$	3,423,701	​	$	3,918,974
​	​	​	​	​	​	​
Liabilities and Equity	​	​	​	​	​	​
Current liabilities:	​	​	​	​	​	​
Accounts payable and accrued expenses	​	$	42,577	​	$	35,614
Accrued payroll and employee benefits	​	​	14,845	​	​	25,002
Dividends and distributions payable	​	​	3,207	​	​	135,872
Other current liabilities	​	​	36,500	​	​	46,955
Current portion of notes payable, net	​	​	188,757	​	​	82,109
Total current liabilities	​	​	285,886	​	​	325,552
​	​	​	​	​	​	​
Notes payable, less current portion, net	​	​	829,673	​	​	888,954
Finance lease obligation, less current portion	​	​	15,570	​	​	15,570
Operating lease obligations, less current portion	​	​	47,206	​	​	49,691
Other liabilities	​	​	25,374	​	​	18,136
Total liabilities	​	​	1,203,709	​	​	1,297,903
​	​	​	​	​	​	​
Commitments and contingencies	​	​	​	​	​	​
​	​	​	​	​	​	​
Equity:	​	​	​	​	​	​
Stockholders' equity:	​	​	​	​	​	​
Preferred stock, $0.01 par value, 100,000,000 shares authorized:	​	​	​	​	​	​
6.95% Series E Cumulative Redeemable Preferred Stock, 4,600,000 shares issued and outstanding at June 30, 2020 and December 31, 2019, stated at liquidation preference of $25.00 per share	​	​	115,000	​	​	115,000
6.45% Series F Cumulative Redeemable Preferred Stock, 3,000,000 shares issued and outstanding at June 30, 2020 and December 31, 2019, stated at liquidation preference of $25.00 per share	​	​	75,000	​	​	75,000
Common stock, $0.01 par value, 500,000,000 shares authorized, 215,635,550 shares issued and outstanding at June 30, 2020 and 224,855,351 shares issued and outstanding at December 31, 2019	​	​	2,156	​	​	2,249
Additional paid in capital	​	​	2,581,637	​	​	2,683,913
Retained earnings	​	​	1,041,056	​	​	1,318,455
Cumulative dividends and distributions	​	​	(1,636,970)	​	​	(1,619,779)
Total stockholders' equity	​	​	2,177,879	​	​	2,574,838
Noncontrolling interest in consolidated joint venture	​	​	42,113	​	​	46,233
Total equity	​	​	2,219,992	​	​	2,621,071
​	​	​	​	​	​	​
Total liabilities and equity	​	$	3,423,701	​	$	3,918,974

​ 8

Sunstone Hotel Investors, Inc.

Unaudited Consolidated Statements of Operations

(In thousands, except per share data)

​

​

​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Quarter Ended June 30,					​	Six Months Ended June 30,
​	****	2020			2019		​	2020		​	2019
​	​	​					​	​
Revenues	​	​	​	​	​	​	​	​	​	​	​	​
Room	​	$	3,869	​	$	208,735	​	$	131,269	​	$	380,593
Food and beverage	​	​	213	​	​	75,704	​	​	48,203	​	​	144,817
Other operating	​	​	6,342	​	​	18,457	​	​	22,164	​	​	35,166
Total revenues	​	​	10,424	​	​	302,896	​	​	201,636	​	​	560,576
Operating expenses	​	​	​	​	​	​	​	​	​	​	​	​
Room	​	​	7,077	​	​	51,846	​	​	51,322	​	​	100,092
Food and beverage	​	​	5,025	​	​	48,399	​	​	46,785	​	​	95,221
Other operating	​	​	1,224	​	​	4,367	​	​	4,988	​	​	8,332
Advertising and promotion	​	​	4,090	​	​	14,149	​	​	16,552	​	​	27,713
Repairs and maintenance	​	​	5,375	​	​	10,193	​	​	15,424	​	​	20,475
Utilities	​	​	3,226	​	​	6,533	​	​	9,068	​	​	13,198
Franchise costs	​	​	338	​	​	8,579	​	​	5,674	​	​	15,418
Property tax, ground lease and insurance	​	​	19,124	​	​	20,614	​	​	39,175	​	​	40,962
Other property-level expenses	​	​	8,736	​	​	34,015	​	​	37,581	​	​	66,855
Corporate overhead	​	​	8,438	​	​	8,078	​	​	15,832	​	​	15,594
Depreciation and amortization	​	​	34,539	​	​	36,524	​	​	71,285	​	​	72,911
Impairment losses	​	​	18,100	​	​	—	​	​	133,466	​	​	—
Total operating expenses	​	​	115,292	​	​	243,297	​	​	447,152	​	​	476,771
Interest and other income	​	​	306	​	​	4,811	​	​	2,612	​	​	9,735
Interest expense	​	​	(12,950)	​	​	(15,816)	​	​	(30,457)	​	​	(30,142)
(Loss) income before income taxes	​	​	(117,512)	​	​	48,594	​	​	(273,361)	​	​	63,398
Income tax benefit (provision), net	​	​	12	​	​	(2,676)	​	​	(6,658)	​	​	436
Net (loss) income	​	​	(117,500)	​	​	45,918	​	​	(280,019)	​	​	63,834
Loss (income) from consolidated joint venture attributable to noncontrolling interest	​	​	2,162	​	​	(1,955)	​	​	2,620	​	​	(3,554)
Preferred stock dividends	​	​	(3,207)	​	​	(3,207)	​	​	(6,414)	​	​	(6,414)
(Loss) income attributable to common stockholders	​	$	(118,545)	​	$	40,756	​	$	(283,813)	​	$	53,866
​	​	​	​	​	​	​	​	​	​	​	​	​
Basic and diluted per share amounts:	​	​	​	​	​	​	​	​	​	​	​	​
Basic and diluted (loss) income attributable to common stockholders per common share	​	$	(0.55)	​	$	0.18	​	$	(1.30)	​	$	0.24
​	​	​	​	​	​	​	​	​	​	​	​	​
Basic and diluted weighted average common shares outstanding	​	​	214,225	​	​	227,389	​	​	217,631	​	​	227,305
​	​	​	​	​	​	​	​	​	​	​	​	​
Distributions declared per common share	​	$	—	​	$	0.05	​	$	0.05	​	$	0.10

​

​ 9

Sunstone Hotel Investors, Inc.

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

(Unaudited and in thousands)

​

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

​

​

​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Quarter Ended June 30,					​	Six Months Ended June 30,
​		2020		****	2019		​	2020		​	​	2019
​	​	​	​	​	​	​	​	​	​	​	​	​
Net (loss) income	​	$	(117,500)	​	$	45,918	​	$	(280,019)	​	$	63,834
Operations held for investment:	​	​	​	​	​	​	​	​	​	​	​	​
Depreciation and amortization	​	​	34,539	​	​	36,524	​	​	71,285	​	​	72,911
Interest expense	​	​	12,950	​	​	15,816	​	​	30,457	​	​	30,142
Income tax (benefit) provision, net	​	​	(12)	​	​	2,676	​	​	6,658	​	​	(436)
Impairment loss - hotel properties	​	​	18,100	​	​	—	​	​	131,164	​	​	—
EBITDAre	​	​	(51,923)	​	​	100,934	​	​	(40,455)	​	​	166,451
​	​	​	​	​	​	​	​	​	​	​	​	​
Operations held for investment:	​	​	​	​	​	​	​	​	​	​	​	​
Amortization of deferred stock compensation	​	​	3,064	​	​	2,900	​	​	5,271	​	​	5,022
Amortization of right-of-use assets and liabilities	​	​	(332)	​	​	(251)	​	​	(593)	​	​	(270)
Finance lease obligation interest - cash ground rent	​	​	(351)	​	​	(590)	​	​	(702)	​	​	(1,179)
Property-level severance	​	​	1,113	​	​	—	​	​	1,113	​	​	—
Prior year property tax adjustments, net	​	​	307	​	​	109	​	​	226	​	​	298
Prior owner contingency funding	​	​	—	​	​	(900)	​	​	—	​	​	(900)
Impairment loss - abandoned development costs	​	​	—	​	​	—	​	​	2,302	​	​	—
Noncontrolling interest:	​	​	​	​	​	​	​	​	​	​	​	​
Loss (income) from consolidated joint venture attributable to noncontrolling interest	​	​	2,162	​	​	(1,955)	​	​	2,620	​	​	(3,554)
Depreciation and amortization	​	​	(806)	​	​	(640)	​	​	(1,610)	​	​	(1,279)
Interest expense	​	​	(306)	​	​	(558)	​	​	(726)	​	​	(1,118)
Amortization of right-of-use asset and liability	​	​	73	​	​	73	​	​	145	​	​	145
Impairment loss - abandoned development costs	​	​	—	​	​	—	​	​	(449)	​	​	—
Adjustments to EBITDAre**, net**	​	​	4,924	​	​	(1,812)	​	​	7,597	​	​	(2,835)
​	​	​	​	​	​	​	​	​	​	​	​	​
Adjusted EBITDAre**, excluding noncontrolling interest**	​	$	(46,999)	​	$	99,122	​	$	(32,858)	​	$	163,616

​

​

​

​

​

​

​

​

​ 10

Sunstone Hotel Investors, Inc.

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

(Unaudited and in thousands, except per share amounts)

​

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

Adjusted FFO Attributable to Common Stockholders

​

​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Quarter Ended June 30,					​	Six Months Ended June 30,
​	​	2020		****	2019		​	2020		​	​	2019
​	​	​	​	​	​	​	​	​	​	​	​	​
Net (loss) income	****	$	(117,500)		$	45,918	​	$	(280,019)	​	$	63,834
Preferred stock dividends	​	​	(3,207)	​	​	(3,207)	​	​	(6,414)	​	​	(6,414)
Operations held for investment:	​	​	​	​	​	​	​	​	​	​	​	​
Real estate depreciation and amortization	​	​	33,917	​	​	35,900	​	​	70,039	​	​	71,670
Impairment loss - hotel properties	​	​	18,100	​	​	—	​	​	131,164	​	​	—
Noncontrolling interest:	​	​	​	​	​	​	​	​	​	​	​	​
Loss (income) from consolidated joint venture attributable to noncontrolling interest	​	​	2,162	​	​	(1,955)	​	​	2,620	​	​	(3,554)
Real estate depreciation and amortization	​	​	(806)	​	​	(640)	​	​	(1,610)	​	​	(1,279)
FFO attributable to common stockholders	​	​	(67,334)	​	​	76,016	​	​	(84,220)	​	​	124,257
​	​	​	​	​	​	​	​	​	​	​	​	​
Operations held for investment:	​	​	​	​	​	​	​	​	​	​	​	​
Real estate amortization of right-of-use assets and liabilities	​	​	72	​	​	146	​	​	218	​	​	297
Noncash interest on derivatives and finance lease obligations, net	​	​	216	​	​	3,634	​	​	6,296	​	​	5,753
Property-level severance	​	​	1,113	​	​	—	​	​	1,113	​	​	—
Prior year property tax adjustments, net	​	​	307	​	​	109	​	​	226	​	​	298
Prior owner contingency funding	​	​	—	​	​	(900)	​	​	—	​	​	(900)
Impairment loss - abandoned development costs	​	​	—	​	​	—	​	​	2,302	​	​	—
Noncash income tax provision (benefit), net	​	​	—	​	​	2,648	​	​	7,415	​	​	(636)
Noncontrolling interest:	​	​	​	​	​	​	​	​	​	​	​	​
Real estate amortization of right-of-use asset and liability	​	​	73	​	​	73	​	​	145	​	​	145
Noncash interest on derivatives, net	​	​	(26)	​	​	—	​	​	(26)	​	​	—
Impairment loss - abandoned development costs	​	​	—	​	​	—	​	​	(449)	​	​	—
Adjustments to FFO attributable to common stockholders, net	​	​	1,755	​	​	5,710	​	​	17,240	​	​	4,957
​	​	​	​	​	​	​	​	​	​	​	​	​
Adjusted FFO attributable to common stockholders	​	$	(65,579)	​	$	81,726	​	$	(66,980)	​	$	129,214
​	​	​	​	​	​	​	​	​	​	​	​	​
FFO attributable to common stockholders per diluted share	​	$	(0.31)	​	$	0.33	​	$	(0.39)	​	$	0.55
​	​	​	​	​	​	​	​	​	​	​	​	​
Adjusted FFO attributable to common stockholders per diluted share	​	$	(0.31)	​	$	0.36	​	$	(0.31)	​	$	0.57
​	​	​	​	​	​	​	​	​	​	​	​	​
Basic weighted average shares outstanding	​	​	214,225	​	​	227,389	​	​	217,631	​	​	227,305
Shares associated with unvested restricted stock awards	​	​	—	​	​	145	​	​	—	​	​	202
Diluted weighted average shares outstanding	​	​	214,225	​	​	227,534	​	​	217,631	​	​	227,507

​

​

​

​ 11

Sunstone Hotel Investors, Inc.

Non-GAAP Financial Measures

Hotel Adjusted EBITDAre and Margins

(Unaudited and in thousands)

​

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Quarter Ended June 30,					​	Six Months Ended June 30,					​
​	​	2020		​	2019		​	2020		​	2019		​
​	​	​	​	​	​	​	​	​	​	​	​	​	​
20 Hotel Portfolio Adjusted EBITDAre Margin, excluding prior year property tax adjustments, net (1)	​	​	-548.5%	​	​	34.3%	​	​	-12.9%	​	​	30.7%	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total revenues	​	$	10,424	​	$	302,896	​	$	201,636	​	$	560,576	​
Non-hotel revenues (2)	​	​	(2,393)	​	​	(25)	​	​	(2,415)	​	​	(48)	​
Total Actual Hotel Revenues	​	​	8,031	​	​	302,871	​	​	199,221	​	​	560,528	​
Sold hotel revenues (3)	​	​	—	​	​	(3,252)	​	​	—	​	​	(6,322)	​
Total 20 Hotel Portfolio Revenues	​	$	8,031	​	$	299,619	​	$	199,221	​	$	554,206	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net (loss) income	​	$	(117,500)	​	$	45,918	​	$	(280,019)	​	$	63,834	​
Non-hotel revenues (2)	​	​	(23)	​	​	(25)	​	​	(45)	​	​	(48)	​
Non-hotel operating expenses, net (4)	​	​	(604)	​	​	(778)	​	​	(1,137)	​	​	(1,545)	​
Operating loss shortfall payment (5)	​	​	(2,370)	​	​	—	​	​	(2,370)	​	​	—	​
Property-level severance (6)	​	​	1,113	​	​	—	​	​	1,113	​	​	—	​
Hotel union labor dispute (7)	​	​	1,347	​	​	—	​	​	1,347	​	​	—	​
Prior year property tax adjustments, net (8)	​	​	307	​	​	109	​	​	226	​	​	298	​
Taxes assessed on commercial rents (9)	​	​	(31)	​	​	348	​	​	105	​	​	708	​
Corporate overhead	​	​	8,438	​	​	8,078	​	​	15,832	​	​	15,594	​
Depreciation and amortization	​	​	34,539	​	​	36,524	​	​	71,285	​	​	72,911	​
Impairment loss	​	​	18,100	​	​	—	​	​	133,466	​	​	—	​
Interest and other income	​	​	(306)	​	​	(4,811)	​	​	(2,612)	​	​	(9,735)	​
Interest expense	​	​	12,950	​	​	15,816	​	​	30,457	​	​	30,142	​
Income tax provision (benefit), net	​	​	(12)	​	​	2,676	​	​	6,658	​	​	(436)	​
Actual Hotel Adjusted EBITDAre	​	​	(44,052)	​	​	103,855	​	​	(25,694)	​	​	171,723	​
Sold hotel Adjusted EBITDAre (3)	​	​	—	​	​	(966)	​	​	—	​	​	(1,841)	​
20 Hotel Portfolio Adjusted EBITDAre**, excluding prior year property tax adjustments, net**	​	$	(44,052)	​	$	102,889	​	$	(25,694)	​	$	169,882	​

​

​

​

*Footnotes on following page

​

​

​ 12

​

(1)	20 Hotel Portfolio Adjusted EBITDAre Margin, excluding prior year property tax adjustments, net is calculated as 20 Hotel Portfolio Adjusted EBITDAre, excluding prior year property tax adjustments, net divided by Total 20 Hotel Portfolio Revenues.
(2)	Non-hotel revenues include the amortization of favorable and unfavorable tenant lease contracts recorded in conjunction with the Company's acquisitions of the Boston Park Plaza, the Hilton Garden Inn Chicago Downtown/Magnificent Mile, the Hyatt Regency San Francisco and the Wailea Beach Resort.
---	---
(3)	Sold hotel includes hotel revenues and Adjusted EBITDAre generated during the Company's ownership period for the Courtyard by Marriott Los Angeles, sold in October 2019.
---	---
(4)	Non-hotel operating expenses, net include the following: the amortization of hotel real estate-related right-of-use assets; the amortization of a favorable management agreement; and finance lease obligation interest - cash ground rent.
---	---
(5)	Operating loss shortfall payment includes a $2.4 million shortfall payment to offset net losses at the Hyatt Regency San Francisco as stipulated by the hotel’s operating agreement.
---	---
(6)	Property-level severance includes a total of $1.1 million in COVID-19-related severance recorded at a majority of the 20 Hotels.
---	---
(7)	Hotel union dispute includes a $1.3 million labor dispute expense at the Hilton Times Square.
---	---
(8)	Prior year property tax adjustments, net for the second quarter of 2020 include a total net assessment of $0.3 million received at the Embassy Suites Chicago, the Hilton Garden Inn Chicago Downtown/Magnificent Mile and the Hyatt Centric Chicago Magnificent Mile. Prior year property tax adjustments, net for the first six months of 2020 also include a total credit, net of appeal fees of $(0.1) million received at the Embassy Suites Chicago and Renaissance Harborplace. Prior year property tax adjustments, net for the second quarter of 2019 include a total net assessment of $0.1 million received at the Embassy Suites Chicago, the Embassy Suites La Jolla, the Hilton Garden Inn Chicago Downtown/Magnificent Mile and the Hyatt Centric Chicago Magnificent Mile. Prior year property tax adjustments, net for the first six months of 2019 also include an assessment of $0.2 million received at the Oceans Edge Resort & Marina.
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(9)	Taxes assessed on commercial rents for the second quarters of 2020 and 2019 include a $(31,000) true-up credit and $0.3 million, respectively, at the Hyatt Regency San Francisco. For the first six months of 2020 and 2019, taxes assessed on commercial rents include $0.1 million and $0.7 million, respectively, at the Hyatt Regency San Francisco.
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Exhibit 99.2

Supplemental Financial InformationAugust 4, 2020

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Supplemental Financial Information<br><br>For the quarter ended June 30, 2020<br><br>August 4, 2020<br><br>​

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Supplemental Financial InformationAugust 4, 2020

Table of Contents

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CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR								3
About Sunstone								4
Forward-Looking Statement								5
Non-GAAP Financial Measures								6
CORPORATE FINANCIAL INFORMATION								9
Condensed Consolidated Balance Sheets Q2 2020 – Q2 2019								10
Consolidated Statements of Operations Q2 and Q2 YTD 2020/2019								12
Reconciliation of Net (Loss) Income to EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest Q2 and Q2 YTD 2020/2019								13
Reconciliation of Net (Loss) Income to FFO and Adjusted FFO Attributable to Common Stockholders Q2 and Q2 YTD 2020/2019								14
Pro Forma Consolidated Statement of Operations FY 2019, Q4 2019 – Q1 2019								15
Pro Forma Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest FY 2019								16
Pro Forma Reconciliation of Net Income to FFO and Adjusted FFO Attributable to Common Stockholders FY 2019								17
CAPITALIZATION								19
Comparative Capitalization Q2 2020 – Q2 2019								20
Consolidated Debt Summary Schedule								21
Consolidated Amortization and Debt Maturity Schedule as of June 30, 2020								22
PROPERTY-LEVEL DATA								23
Hotel Information as of August 4, 2020								24
PROPERTY-LEVEL OPERATING STATISTICS								25
Property-Level Operating Statistics April 2020/2019								26
Property-Level Operating Statistics May 2020/2019								27
Property-Level Operating Statistics June 2020/2019								28
Property-Level Operating Statistics Q2 2020/2019								29
Property-Level Operating Statistics Q2 YTD 2020/2019								30

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Table of Contents

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PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS								31
Property-Level Adjusted EBITDAre & Adjusted EBITDAre Margins Q2 2020								32
Property-Level Adjusted EBITDAre & Adjusted EBITDAre Margins Q2 YTD 2020								33
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CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR

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Supplemental Financial InformationAugust 4, 2020

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About Sunstone

Sunstone Hotel Investors, Inc. (the “Company,” “we,” and “our”) (NYSE: SHO) is a lodging real estate investment trust (“REIT”) that as of August 4, 2020 has interests in 19 hotels comprised of 9,988 rooms. Sunstone is the premier steward of Long-Term Relevant Real Estate® (“LTRR®”) in the lodging industry. Sunstone’s business is to acquire, own, asset manage and renovate or reposition hotels that the Company considers to be LTRR® in the United States, specifically hotels in urban and resort locations that benefit from barriers to entry and diverse economic drivers. The majority of Sunstone’s hotels are operated under nationally recognized brands, such as Marriott, Hilton and Hyatt.

As demand for lodging generally fluctuates with the overall economy, the Company seeks to own Long-Term Relevant Real Estate® that will maintain a high appeal with lodging travelers over long periods of time and will generate superior economic earnings materially in excess of recurring capital requirements. Sunstone’s strategy is to maximize stockholder value through focused asset management and disciplined capital recycling, which is likely to include selective acquisitions and dispositions, while maintaining balance sheet flexibility and strength. Sunstone’s goal is to maintain appropriate leverage and financial flexibility to position the Company to create value throughout all phases of the operating and financial cycles.

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Corporate Headquarters200 Spectrum Center Drive, 21^st^ Floor Irvine, CA 92618 (949) 330-4000

Company ContactsJohn Arabia President and Chief Executive Officer (949) 382-3008

Bryan Giglia Executive Vice President and Chief Financial Officer (949) 382-3036

Aaron Reyes Vice President, Corporate Finance (949) 382-3018

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Supplemental Financial InformationAugust 4, 2020

Forward-Looking Statement

This presentation 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 on the Company’s business of the COVID-19 global pandemic and the response of governments and the Company to the outbreak; 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, trade conflicts and tariffs between the U.S. and its trading partners, changes in the European Union or global economic slowdown, which may diminish the desire for leisure travel or the need for business travel, as well as any type of flu or disease-related pandemic or the adverse effects of climate change, affecting the lodging and travel industry, internationally, nationally and locally; 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; rising hotel operating costs due to labor costs, workers’ compensation and health-care related costs, including the impact of the Patient Protection and Affordable Care Act or its potential replacement, utility costs, insurance and unanticipated costs such as acts of nature and their consequences and other factors that may not be offset by increased room rates; relationships with, and the requirements and reputation of, the Company’s franchisors and hotel brands; relationships with, and the requirements, performance and reputation of, the managers of the Company’s hotels; the ground, building or airspace leases for four of the 19 Hotels the Company has interests in as of the date of this presentation; competition for the acquisition of hotels, and the Company’s ability to complete acquisitions and dispositions; performance of hotels after they are acquired; 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; 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; 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 Company’s hotels may become impaired, or 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; 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; 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, including those impacting the Company’s hotel managers or other third parties, and systems integration issues; other events beyond the Company’s control, including natural disasters, terrorist attacks or civil unrest; and other risks and uncertainties associated with our business described in the Company’s filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All forward-looking information provided herein is as of the date of this presentation, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.

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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.

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Supplemental Financial InformationAugust 4, 2020

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 margin. 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 the NAREIT definition of “FFO applicable to common shares.” Our presentation may not be comparable to FFO reported by other REITs that do not define the terms in accordance with the current NAREIT definition, or that interpret the current NAREIT definition differently that we do.

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Supplemental Financial InformationAugust 4, 2020

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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 favorable and unfavorable contracts: we exclude the noncash amortization of the favorable management contract asset recorded in conjunction with our acquisition of the Hilton Garden Inn Chicago Downtown/Magnificent Mile, along with the favorable and unfavorable tenant lease contracts, as applicable, recorded in conjunction with our acquisitions of the Boston Park Plaza, the Hilton Garden Inn Chicago Downtown/Magnificent Mile, the Hyatt Regency San Francisco and the Wailea Beach Resort. We exclude the noncash amortization of favorable and unfavorable contracts 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.
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●	Acquisition costs: under GAAP, costs associated with completed 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.
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●	Cumulative effect of a change in accounting principle: from time to time, the FASB promulgates new accounting standards that require the consolidated statement of operations to reflect the cumulative effect of a change in accounting principle. We exclude these one-time adjustments, which include the accounting impact from prior periods, because they do not reflect our actual performance for that period.
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●	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; lease terminations; and property insurance proceeds or uninsured losses.
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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 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. In addition, we exclude the amortization of our right-of-use assets and liabilities 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

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finance lease expenses recorded on the ground lease at the Courtyard by Marriott Los Angeles (prior to the hotel’s sale in October 2019) and the building lease at the Hyatt Centric Chicago Magnificent Mile. We determined that both of these leases are finance leases, and, therefore, we include a portion of the lease payments each month in interest expense. We adjust EBITDAre for these two finance leases in order to more accurately reflect the actual rent due to both hotels’ lessors in the current period, as well as the operating performance of both hotels. We also exclude the effect of gains and losses on the disposition of undepreciated assets because we believe that including them in Adjusted EBITDAre, 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 obligations 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 liabilities, 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 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 (loss) income to EBITDAre, Adjusted EBITDAre, excluding noncontrolling interest, FFO attributable to common stockholders, Adjusted FFO attributable to common stockholders, hotel Adjusted EBITDAre and hotel Adjusted EBITDAre margins are set forth in the following pages of this supplemental package.

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Supplemental Financial InformationAugust 4, 2020

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CORPORATE FINANCIAL INFORMATION

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CORPORATE FINANCIAL INFORMATION		​	Page 9
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Supplemental Financial InformationAugust 4, 2020

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Condensed Consolidated Balance Sheets Q2 2020 – Q2 2019

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(In thousands)	​	June 30, 2020^(1)^		​	March 31, 2020^(2)^		​	December 31, 2019^(3)^		​	September 30, 2019^(4)^		​	June 30, 2019^(5)^		​
Assets	****	​	​	​	​	​		​			​			​		​
Investment in hotel properties:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Land	​	$	581,426	​	$	600,649	​	$	601,181	​	$	605,581	​	$	605,581	​
Buildings & improvements	​	​	2,694,935	​	​	2,800,187	​	​	2,950,534	​	​	2,968,241	​	​	2,957,631	​
Furniture, fixtures, & equipment	​	​	460,526	​	​	496,312	​	​	506,754	​	​	512,333	​	​	497,082	​
Other	​	​	72,775	​	​	71,327	​	​	73,992	​	​	68,677	​	​	102,125	​
​	​	​	3,809,662	​	​	3,968,475	​	​	4,132,461	​	​	4,154,832	​	​	4,162,419	​
Less accumulated depreciation & amortization	​	​	(1,164,181)	​	​	(1,212,063)	​	​	(1,260,108)	​	​	(1,243,980)	​	​	(1,225,741)	​
​	​	​	2,645,481	​	​	2,756,412	​	​	2,872,353	​	​	2,910,852	​	​	2,936,678	​
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Finance lease right-of-use assets, net	​	​	46,917	​	​	47,284	​	​	47,652	​	​	48,019	​	​	54,991	​
Operating lease right-of-use assets, net	​	​	40,351	​	​	41,198	​	​	60,629	​	​	61,512	​	​	62,380	​
Other noncurrent assets, net	​	​	15,415	​	​	16,390	​	​	24,608	​	​	25,348	​	​	27,029	​
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Current assets:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Cash and cash equivalents	​	​	540,420	​	​	847,445	​	​	816,857	​	​	730,039	​	​	741,503	​
Restricted cash	​	​	45,960	​	​	53,485	​	​	48,116	​	​	46,206	​	​	46,199	​
Other current assets, net	​	​	12,474	​	​	37,326	​	​	48,759	​	​	58,380	​	​	56,960	​
Assets held for sale, net	​	​	76,683	​	​	—	​	​	—	​	​	18,481	​	​	—	​
Total assets	​	$	3,423,701	​	$	3,799,540	​	$	3,918,974	​	$	3,898,837	​	$	3,925,740	​

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CORPORATE FINANCIAL INFORMATION		​	Page 10
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Supplemental Financial InformationAugust 4, 2020

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Condensed Consolidated Balance Sheets Q2 2020– Q2 2019 (cont.)

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(In thousands)	​	June 30, 2020^(1)^		​	March 31, 2020^(2)^		​	December 31, 2019^(3)^		​	September 30, 2019^(4)^		​	June 30, 2019^(5)^		​
Liabilities	****	​	​	​	​	​		​			​			​
Current liabilities:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Current portion of notes payable, net	​	$	188,757	​	$	82,189	​	$	82,109	​	$	6,271	​	$	6,167	​
Other current liabilities	​	​	97,129	​	​	104,029	​	​	243,443	​	​	114,805	​	​	115,024	​
Liabilities of assets held for sale	​	​	—	​	​	—	​	​	—	​	​	12,446	​	​	—	​
Total current liabilities	​	​	285,886	​	​	186,218	​	​	325,552	​	​	133,522	​	​	121,191	​
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Notes payable, less current portion, net	​	​	829,673	​	​	1,187,468	​	​	888,954	​	​	966,496	​	​	968,090	​
Finance lease obligations, less current portion	​	​	15,570	​	​	15,570	​	​	15,570	​	​	15,571	​	​	27,120	​
Operating lease obligations, less current portion	​	​	47,206	​	​	48,460	​	​	49,691	​	​	50,905	​	​	52,097	​
Other liabilities	​	​	25,374	​	​	24,818	​	​	18,136	​	​	19,824	​	​	19,176	​
Total liabilities	​	​	1,203,709	​	​	1,462,534	​	​	1,297,903	​	​	1,186,318	​	​	1,187,674	​
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Equity	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Stockholders' equity:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
6.95% Series E cumulative redeemable preferred stock	​	​	115,000	​	​	115,000	​	​	115,000	​	​	115,000	​	​	115,000	​
6.45% Series F cumulative redeemable preferred stock	​	​	75,000	​	​	75,000	​	​	75,000	​	​	75,000	​	​	75,000	​
Common stock, $0.01 par value, 500,000,000 shares authorized	​	​	2,156	​	​	2,155	​	​	2,249	​	​	2,249	​	​	2,282	​
Additional paid in capital	​	​	2,581,637	​	​	2,578,445	​	​	2,683,913	​	​	2,681,754	​	​	2,723,737	​
Retained earnings	​	​	1,041,056	​	​	1,156,394	​	​	1,318,455	​	​	1,274,039	​	​	1,243,002	​
Cumulative dividends and distributions	​	​	(1,636,970)	​	​	(1,633,763)	​	​	(1,619,779)	​	​	(1,483,907)	​	​	(1,469,456)	​
Total stockholders' equity	​	​	2,177,879	​	​	2,293,231	​	​	2,574,838	​	​	2,664,135	​	​	2,689,565	​
Noncontrolling interest in consolidated joint venture	​	​	42,113	​	​	43,775	​	​	46,233	​	​	48,384	​	​	48,501	​
Total equity	​	​	2,219,992	​	​	2,337,006	​	​	2,621,071	​	​	2,712,519	​	​	2,738,066	​
Total liabilities and equity	​	$	3,423,701	​	$	3,799,540	​	$	3,918,974	​	$	3,898,837	​	$	3,925,740	​

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(1)	As presented on Form 10-Q to be filed in August 2020.
(2)	As presented on Form 10-Q filed on May 11, 2020.
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(3)	As presented on Form 10-K filed on February 19, 2020.
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(4)	As presented on Form 10-Q filed on November 5, 2019.
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(5)	As presented on Form 10-Q filed on August 5, 2019.
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Supplemental Financial InformationAugust 4, 2020

Consolidated Statements of Operations Q2 and Q2 YTD 2020/2019

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​	​	Three Months Ended June 30,					​	Six Months Ended June 30,
(In thousands, except per share data)	****	2020			2019		​	2020		​	2019
Revenues	​	​	​	​	​	​	​	​	​	​	​	​
Room	​	$	3,869	​	$	208,735	​	$	131,269	​	$	380,593
Food and beverage	​	​	213	​	​	75,704	​	​	48,203	​	​	144,817
Other operating	​	​	6,342	​	​	18,457	​	​	22,164	​	​	35,166
Total revenues	​	​	10,424	​	​	302,896	​	​	201,636	​	​	560,576
Operating expenses	​	​	​	​	​	​	​	​	​	​	​	​
Room	​	​	7,077	​	​	51,846	​	​	51,322	​	​	100,092
Food and beverage	​	​	5,025	​	​	48,399	​	​	46,785	​	​	95,221
Other operating	​	​	1,224	​	​	4,367	​	​	4,988	​	​	8,332
Advertising and promotion	​	​	4,090	​	​	14,149	​	​	16,552	​	​	27,713
Repairs and maintenance	​	​	5,375	​	​	10,193	​	​	15,424	​	​	20,475
Utilities	​	​	3,226	​	​	6,533	​	​	9,068	​	​	13,198
Franchise costs	​	​	338	​	​	8,579	​	​	5,674	​	​	15,418
Property tax, ground lease and insurance	​	​	19,124	​	​	20,614	​	​	39,175	​	​	40,962
Other property-level expenses	​	​	8,736	​	​	34,015	​	​	37,581	​	​	66,855
Corporate overhead	​	​	8,438	​	​	8,078	​	​	15,832	​	​	15,594
Depreciation and amortization	​	​	34,539	​	​	36,524	​	​	71,285	​	​	72,911
Impairment losses	​	​	18,100	​	​	—	​	​	133,466	​	​	—
Total operating expenses	​	​	115,292	​	​	243,297	​	​	447,152	​	​	476,771
​	​	​	​	​	​	​	​	​	​	​	​	​
Interest and other income	​	​	306	​	​	4,811	​	​	2,612	​	​	9,735
Interest expense	​	​	(12,950)	​	​	(15,816)	​	​	(30,457)	​	​	(30,142)
(Loss) income before income taxes	​	​	(117,512)	​	​	48,594	​	​	(273,361)	​	​	63,398
Income tax benefit (provision), net	​	​	12	​	​	(2,676)	​	​	(6,658)	​	​	436
Net (loss) income	​	​	(117,500)	​	​	45,918	​	​	(280,019)	​	​	63,834
Loss (income) from consolidated joint venture attributable to noncontrolling interest	​	​	2,162	​	​	(1,955)	​	​	2,620	​	​	(3,554)
Preferred stock dividends	​	​	(3,207)	​	​	(3,207)	​	​	(6,414)	​	​	(6,414)
(Loss) income attributable to common stockholders	​	$	(118,545)	​	$	40,756	​	$	(283,813)	​	$	53,866
​	​	​	​	​	​	​	​	​	​	​	​	​
Basic and diluted per share amounts:	​	​	​	​	​	​	​	​	​	​	​	​
Basic and diluted (loss) income attributable to common stockholders per common share	​	$	(0.55)	​	$	0.18	​	$	(1.30)	​	$	0.24
​	​	​	​	​	​	​	​	​	​	​	​	​
Basic and diluted weighted average common shares outstanding	​	​	214,225	​	​	227,389	​	​	217,631	​	​	227,305
​	​	​	​	​	​	​	​	​	​	​	​	​
Distributions declared per common share	​	$	—	​	$	0.05	​	$	0.05	​	$	0.10

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CORPORATE FINANCIAL INFORMATION		​	Page 12
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Supplemental Financial InformationAugust 4, 2020

Reconciliation of Net (Loss) Income to EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest Q2 and Q2 YTD 2020/2019

​

​

​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended June 30,					​	Six Months Ended June 30,
(In thousands)		​	2020	****	​	2019	​	​	2020	​	​	2019
Net (loss) income	​	$	(117,500)	​	$	45,918	​	$	(280,019)	​	$	63,834
Operations held for investment:	​	​	​	​	​	​	​	​	​	​	​	​
Depreciation and amortization	​	​	34,539	​	​	36,524	​	​	71,285	​	​	72,911
Interest expense	​	​	12,950	​	​	15,816	​	​	30,457	​	​	30,142
Income tax (benefit) provision, net	​	​	(12)	​	​	2,676	​	​	6,658	​	​	(436)
Impairment loss - hotel properties	​	​	18,100	​	​	—	​	​	131,164	​	​	—
EBITDAre	​	​	(51,923)	​	​	100,934	​	​	(40,455)	​	​	166,451
​	​	​	​	​	​	​	​	​	​	​	​	​
Operations held for investment:	​	​	​	​	​	​	​	​	​	​	​	​
Amortization of deferred stock compensation	​	​	3,064	​	​	2,900	​	​	5,271	​	​	5,022
Amortization of right-of-use assets and liabilities	​	​	(332)	​	​	(251)	​	​	(593)	​	​	(270)
Finance lease obligation interest - cash ground rent	​	​	(351)	​	​	(590)	​	​	(702)	​	​	(1,179)
Property-level severance	​	​	1,113	​	​	—	​	​	1,113	​	​	—
Prior year property tax adjustments, net	​	​	307	​	​	109	​	​	226	​	​	298
Prior owner contingency funding	​	​	—	​	​	(900)	​	​	—	​	​	(900)
Impairment loss - abandoned development costs	​	​	—	​	​	—	​	​	2,302	​	​	—
Noncontrolling interest:	​	​	​	​	​	​	​	​	​	​	​	​
Loss (income) from consolidated joint venture attributable to noncontrolling interest	​	​	2,162	​	​	(1,955)	​	​	2,620	​	​	(3,554)
Depreciation and amortization	​	​	(806)	​	​	(640)	​	​	(1,610)	​	​	(1,279)
Interest expense	​	​	(306)	​	​	(558)	​	​	(726)	​	​	(1,118)
Amortization of right-of-use asset and liability	​	​	73	​	​	73	​	​	145	​	​	145
Impairment loss - abandoned development costs	​	​	—	​	​	—	​	​	(449)	​	​	—
Adjustments to EBITDAre**, net**	​	​	4,924	​	​	(1,812)	​	​	7,597	​	​	(2,835)
Adjusted EBITDAre**, excluding noncontrolling interest**	​	$	(46,999)	​	$	99,122	​	$	(32,858)	​	$	163,616

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CORPORATE FINANCIAL INFORMATION		​	Page 13
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Supplemental Financial InformationAugust 4, 2020

​

​

Reconciliation of Net (Loss) Income to FFO and Adjusted FFO Attributable to Common Stockholders Q2 and Q2 YTD 2020/2019

​

​

​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended June 30,					​	Six Months Ended June 30,
(In thousands, except per share data)		​	2020	****	​	2019	​	​	2020	​	​	2019
Net (loss) income	​	$	(117,500)	​	$	45,918	​	$	(280,019)	​	$	63,834
Preferred stock dividends	​	​	(3,207)	​	​	(3,207)	​	​	(6,414)	​	​	(6,414)
Operations held for investment:	​	​	​	​	​	​	​	​	​	​	​	​
Real estate depreciation and amortization	​	​	33,917	​	​	35,900	​	​	70,039	​	​	71,670
Impairment loss - hotel properties	​	​	18,100	​	​	—	​	​	131,164	​	​	—
Noncontrolling interest:	​	​	​	​	​	​	​	​	​	​	​	​
Loss (income) from consolidated joint venture attributable to noncontrolling interest	​	​	2,162	​	​	(1,955)	​	​	2,620	​	​	(3,554)
Real estate depreciation and amortization	​	​	(806)	​	​	(640)	​	​	(1,610)	​	​	(1,279)
FFO attributable to common stockholders	​	​	(67,334)	​	​	76,016	​	​	(84,220)	​	​	124,257
​	​	​	​	​	​	​	​	​	​	​	​	​
Operations held for investment:	​	​	​	​	​	​	​	​	​	​	​	​
Real estate amortization of right-of-use assets and liabilities	​	​	72	​	​	146	​	​	218	​	​	297
Noncash interest on derivatives and finance lease obligations, net	​	​	216	​	​	3,634	​	​	6,296	​	​	5,753
Property-level severance	​	​	1,113	​	​	—	​	​	1,113	​	​	—
Prior year property tax adjustments, net	​	​	307	​	​	109	​	​	226	​	​	298
Prior owner contingency funding	​	​	—	​	​	(900)	​	​	—	​	​	(900)
Impairment loss - abandoned development costs	​	​	—	​	​	—	​	​	2,302	​	​	—
Noncash income tax provision (benefit), net	​	​	—	​	​	2,648	​	​	7,415	​	​	(636)
Noncontrolling interest:	​	​	​	​	​	​	​	​	​	​	​	​
Real estate amortization of right-of-use asset and liability	​	​	73	​	​	73	​	​	145	​	​	145
Noncash interest on derivatives, net	​	​	(26)	​	​	—	​	​	(26)	​	​	—
Impairment loss - abandoned development costs	​	​	—	​	​	—	​	​	(449)	​	​	—
Adjustments to FFO attributable to common stockholders, net	​	​	1,755	​	​	5,710	​	​	17,240	​	​	4,957
Adjusted FFO attributable to common stockholders	​	$	(65,579)	​	$	81,726	​	$	(66,980)	​	$	129,214
FFO attributable to common stockholders per diluted share	​	$	(0.31)	​	$	0.33	​	$	(0.39)	​	$	0.55
Adjusted FFO attributable to common stockholders per diluted share	​	$	(0.31)	​	$	0.36	​	$	(0.31)	​	$	0.57
​	​	​	​	​	​	​	​	​	​	​	​	​
Basic weighted average shares outstanding	​	​	214,225	​	​	227,389	​	​	217,631	​	​	227,305
Shares associated with unvested restricted stock awards	​	​	—	​	​	145	​	​	—	​	​	202
Diluted weighted average shares outstanding	​	​	214,225	​	​	227,534	​	​	217,631	​	​	227,507

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CORPORATE FINANCIAL INFORMATION		​	Page 14
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Supplemental Financial InformationAugust 4, 2020

Pro Forma Consolidated Statement of Operations

FY 2019, Q4 2019 – Q1 2019

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​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	Year Ended (1)		​	Quarter Ended (1)
(Unaudited and in thousands)	​	December 31,	​	​	December 31,	​	September 30,		​	June 30,		​	March 31,
​	​	2019		​	2019		2019			2019			2019
Revenues	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Room	$	734,864	​	$	179,984	​	$	190,122	​	$	199,177	​	$	165,581
Food and beverage	​	257,325	​	​	62,730	​	​	57,902	​	​	70,534	​	​	66,159
Other operating	​	71,397	​	​	19,030	​	​	18,898	​	​	17,569	​	​	15,900
Total revenues	​	1,063,586	​	​	261,744	​	​	266,922	​	​	287,280	​	​	247,640
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Operating Expenses	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Room	​	195,127	​	​	48,663	​	​	50,184	​	​	49,742	​	​	46,538
Food and beverage	​	177,704	​	​	44,209	​	​	42,792	​	​	45,797	​	​	44,906
Other expenses	​	364,341	​	​	91,146	​	​	91,019	​	​	92,618	​	​	89,558
Corporate overhead	​	30,264	​	​	7,275	​	​	7,395	​	​	8,078	​	​	7,516
Depreciation and amortization	​	140,269	​	​	35,372	​	​	35,442	​	​	34,811	​	​	34,644
Total operating expenses	​	907,705	​	​	226,665	​	​	226,832	​	​	231,046	​	​	223,162
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Interest and other income	​	16,557	​	​	3,060	​	​	3,762	​	​	4,811	​	​	4,924
Interest expense	​	(53,268)	​	​	(10,752)	​	​	(12,963)	​	​	(15,521)	​	​	(14,032)
Income before income taxes	​	119,170	​	​	27,387	​	​	30,889	​	​	45,524	​	​	15,370
Income tax benefit (provision), net	​	151	​	​	(1,034)	​	​	749	​	​	(2,676)	​	​	3,112
Net Income	$	119,321	​	$	26,353	​	$	31,638	​	$	42,848	​	$	18,482
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Adjusted EBITDAre**, excluding noncontrolling interest (2)**	$	307,332	​	$	72,720	​	$	77,067	​	$	94,283	​	$	63,262

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(1)	Includes the Company's ownership results for the 19 Hotel Portfolio. Excludes the Company's ownership results for the Courtyard by Marriott Los Angeles and the Renaissance Harborplace due to their sales in October 2019 and July 2020, respectively.
(2)	Adjusted EBITDAre, excluding noncontrolling interest reconciliation for the year ended December 31, 2019 can be found on page 16 in this supplemental package.
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CORPORATE FINANCIAL INFORMATION		​	Page 15
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Supplemental Financial InformationAugust 4, 2020

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

FY 2019

​

​	​	​	​	​	​	​	​	​	​	​
​	Year Ended December 31, 2019
​	​	​	​	Disposition:	​	Disposition:	​	Repurchase:	​	​
​	​	​	​	Courtyard by Marriott	​	Renaissance	​	Common	​	Pro
(In thousands)	​	Actual (1)	​	Los Angeles (2)	​	Harborplace (2)	​	Stock (3)	​	Forma (4)
​	​	​	​	​	​	​	​	​	​	​
Net income	$	142,793	$	(44,979)	$	21,507	$	—	$	119,321
Operations held for investment:	​	​	​	​	​	​	​	​	​	​
Depreciation and amortization	​	147,748	​	(760)	​	(6,719)	​	—	​	140,269
Interest expense	​	54,223	​	(955)	​	—	​	—	​	53,268
Income tax benefit, net	​	(151)	​	—	​	—	​	—	​	(151)
Gain on sale of assets	​	(42,935)	​	42,935	​	—	​	—	​	—
Impairment loss	​	24,713	​	—	​	(24,713)	​	—	​	—
EBITDAre	​	326,391	​	(3,759)	​	(9,925)	​	—	​	312,707
​	​	​	​	​	​	​	​	​	​	​
Operations held for investment:	​	​	​	​	​	​	​	​	​	​
Amortization of deferred stock compensation	​	9,313	​	—	​	—	​	—	​	9,313
Amortization of right-of-use assets and liabilities	​	(782)	​	—	​	—	​	—	​	(782)
Finance lease obligation interest - cash ground rent	​	(2,175)	​	772	​	—	​	—	​	(1,403)
Prior year property tax adjustments, net	​	168	​	—	​	—	​	—	​	168
Prior owner contingency funding	​	(900)	​	—	​	—	​	—	​	(900)
Noncontrolling interest:	​	​	​	​	​	​	​	​	​	​
Income from consolidated joint venture attributable to noncontrolling interest	​	(7,060)	​	—	​	—	​	—	​	(7,060)
Depreciation and amortization	​	(2,875)	​	—	​	—	​	—	​	(2,875)
Interest expense	​	(2,126)	​	—	​	—	​	—	​	(2,126)
Amortization of right-of-use asset and liability	​	290	​	—	​	—	​	—	​	290
Adjustments to EBITDAre**, net**	​	(6,147)	​	772	​	—	​	—	​	(5,375)
​	​	​	​	​	​	​	​	​	​	​
Adjusted EBITDAre**, excluding noncontrolling interest**	$	320,244	$	(2,987)	$	(9,925)	$	—	$	307,332

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*Footnotes on Page 18

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CORPORATE FINANCIAL INFORMATION		​	Page 16
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Supplemental Financial InformationAugust 4, 2020

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

FY 2019

​

​	​	​	​	​	​	​	​	​	​	​
​	Year Ended December 31, 2019
​	​	​	​	Disposition:	​	Disposition:	​	Repurchase:	​	​
​	​	​	​	Courtyard by Marriott	​	Renaissance	​	Common	​	Pro
(In thousands, except per share amounts)	​	Actual (1)	​	Los Angeles (2)	​	Harborplace (2)	​	Stock (3)	​	Forma (4)
​	​	​	​	​	​	​	​	​	​	​
Net income	$	142,793	$	(44,979)	$	21,507	$	—	$	119,321
Preferred stock dividends	​	(12,830)	​	—	​	—	​	—	​	(12,830)
Operations held for investment:	​	​	​	​	​	​	​	​	​	​
Real estate depreciation and amortization	​	145,260	​	(760)	​	(6,719)	​	—	​	137,781
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	​	(7,060)	​	—	​	—	​	—	​	(7,060)
Real estate depreciation and amortization	​	(2,875)	​	—	​	—	​	—	​	(2,875)
FFO attributable to common stockholders	​	247,066	​	(2,804)	​	(9,925)	​	—	​	234,337
​	​	​	​	​	​	​	​	​	​	​
Operations held for investment:	​	​	​	​	​	​	​	​	​	​
Real estate amortization of right-of-use assets and liabilities	​	590	​	—	​	—	​	—	​	590
Noncash interest on derivatives and finance lease obligations, net	​	6,051	​	(183)	​	—	​	—	​	5,868
Prior year property tax adjustments, net	​	168	​	—	​	—	​	—	​	168
Prior owner contingency funding	​	(900)	​	—	​	—	​	—	​	(900)
Noncash income tax provision, net	​	688	​	—	​	—	​	—	​	688
Noncontrolling interest:	​	​	​	​	​	​	​	​	​	​
Real estate amortization of right-of-use asset and liability	​	290	​	—	​	—	​	—	​	290
Adjustments to FFO attributable to common stockholders, net	​	6,887	​	(183)	​	—	​	—	​	6,704
​	​	​	​	​	​	​	​	​	​	​
Adjusted FFO attributable to common stockholders	$	253,953	$	(2,987)	$	(9,925)	$	—	$	241,041
​	​	​	​	​	​	​	​	​	​	​
FFO attributable to common stockholders per diluted share	$	1.09	​	​	​	​	​	​	$	1.09
​	​	​	​	​	​	​	​	​	​	​
Adjusted FFO attributable to common stockholders per diluted share	$	1.12	​	​	​	​	​	​	$	1.13
​	​	​	​	​	​	​	​	​	​	​
Basic weighted average shares outstanding	​	225,681	​	​	​	​	​	(11,868)	​	213,813
Shares associated with unvested restricted stock awards	​	276	​	​	​	​	​	—	​	276
Diluted weighted average shares outstanding	​	225,957	​	​	​	​	​	(11,868)	​	214,089

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*Footnotes on Page 18

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CORPORATE FINANCIAL INFORMATION		​	Page 17
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Supplemental Financial InformationAugust 4, 2020

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

FFO and Adjusted FFO Attributable to Common Stockholders

FY 2019 Footnotes

​

​

(1)	Actual represents the Company's ownership results for all 20 hotels owned by the Company as of December 31, 2019, as well as results for the Courtyard by Marriott Los Angeles and the Renaissance Harborplace prior to their sales in October 2019 and July 2020, respectively.
(2)	Disposition: Represents the Company's ownership results for the Courtyard by Marriott Los Angeles and the Renaissance Harborplace, sold in October 2019 and July 2020, respectively.
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(3)	Repurchase: Common Stock represents the 3,783,936 shares repurchased in connection with the Company's stock repurchase program in the second, third and fourth quarters of 2019, as well as the 9,770,081 shares repurchased in the first quarter of 2020.
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(4)	Pro Forma represents the Company's ownership results for the 19 Hotel Portfolio, as well as the common stock repurchases in the second, third and fourth quarters of 2019, and the first quarter of 2020.
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CORPORATE FINANCIAL INFORMATION		​	Page 18
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	Supplemental Financial InformationAugust 4, 2020

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CAPITALIZATION

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CAPITALIZATION		​	Page 19
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Supplemental Financial InformationAugust 4, 2020

Comparative Capitalization Q2 2020 – Q2 2019

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​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	June 30,		​	March 31,		​	December 31,		​	September 30,		​	June 30,		​
(In thousands, except per share data)		2020		****	2020		****	2019		****	2019		****	2019		​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Common Share Price & Dividends	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
At the end of the quarter	​	$	8.15	​	$	8.71	​	$	13.92	​	$	13.74	​	$	13.71	​
High during quarter ended	​	$	10.65	​	$	13.81	​	$	14.41	​	$	13.92	​	$	14.94	​
Low during quarter ended	​	$	7.04	​	$	6.99	​	$	13.25	​	$	12.85	​	$	13.19	​
Common dividends per share	​	$	—	​	$	0.05	​	$	0.59	​	$	0.05	​	$	0.05	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Common Shares & Units	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Common shares outstanding	​	​	215,636	​	​	215,541	​	​	224,855	​	​	224,862	​	​	228,207	​
Units outstanding	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​
Total common shares and units outstanding	​	​	215,636	​	​	215,541	​	​	224,855	​	​	224,862	​	​	228,207	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Capitalization ****	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Market value of common equity	​	$	1,757,430	​	$	1,877,363	​	$	3,129,982	​	$	3,089,604	​	$	3,128,716	​
Liquidation value of preferred equity - Series E	​	​	115,000	​	​	115,000	​	​	115,000	​	​	115,000	​	​	115,000	​
Liquidation value of preferred equity - Series F	​	​	75,000	​	​	75,000	​	​	75,000	​	​	75,000	​	​	75,000	​
Consolidated debt	​	​	1,021,247	​	​	1,272,965	​	​	974,863	​	​	977,058	​	​	979,040	​
Consolidated total capitalization	​	​	2,968,677	​	​	3,340,328	​	​	4,294,845	​	​	4,256,662	​	​	4,297,756	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Noncontrolling interest in consolidated debt	​	​	(55,000)	​	​	(55,000)	​	​	(55,000)	​	​	(55,000)	​	​	(55,000)	​
Pro rata total capitalization	​	$	2,913,677	​	$	3,285,328	​	$	4,239,845	​	$	4,201,662	​	$	4,242,756	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Consolidated debt to consolidated total capitalization	​	​	34.4	%	​	38.1	%	​	22.7	%	​	23.0	%	​	22.8	%
Pro rata debt to pro rata total capitalization	​	​	33.2	%	​	37.1	%	​	21.7	%	​	21.9	%	​	21.8	%
Consolidated debt and preferred equity to consolidated total capitalization	​	​	40.8	%	​	43.8	%	​	27.1	%	​	27.4	%	​	27.2	%
Pro rata debt and preferred equity to pro rata total capitalization	​	​	39.7	%	​	42.9	%	​	26.2	%	​	26.5	%	​	26.3	%

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CAPITALIZATION		​	Page 20
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Supplemental Financial InformationAugust 4, 2020

Consolidated Debt Summary Schedule

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(In thousands)	​	​	​	Interest Rate /	​	Maturity	​	​	June 30, 2020	​	​	Balance At
Debt	****	Collateral	****	Spread	****	Date		​	Balance		​	Maturity
​	​	​	​	​	​	​	​	​	​	​	​	​
Fixed Rate Debt	​	​	​	​	​	​	​	​	​	​	​	​
Secured Mortgage Debt (1)	​	Hilton Times Square	​	4.97%	​	11/01/2020	​	$	77,175	​	$	76,145
Secured Mortgage Debt	​	Renaissance Washington DC	​	5.95%	​	05/01/2021	​	​	109,534	​	​	106,855
Term Loan Facility (2)	​	Unsecured	​	3.79%	​	09/03/2022	​	​	85,000	​	​	85,000
Term Loan Facility (2)	​	Unsecured	​	4.05%	​	01/31/2023	​	​	100,000	​	​	100,000
Secured Mortgage Debt	​	JW Marriott New Orleans	​	4.15%	​	12/11/2024	​	​	80,980	​	​	72,071
Secured Mortgage Debt	​	Embassy Suites La Jolla	​	4.12%	​	01/06/2025	​	​	58,558	​	​	51,987
Series A Senior Notes (3)	​	Unsecured	​	5.69%	​	01/10/2026	​	​	120,000	​	​	120,000
Series B Senior Notes (3)	​	Unsecured	​	5.79%	​	01/10/2028	​	​	120,000	​	​	120,000
Total Fixed Rate Debt	​	​	​	​	​	​	​	​	751,247	​	​	732,058
Variable Rate Debt	​	​	​	​	​	​	​	​	​	​	​	​
Secured Mortgage Debt (4)	​	Hilton San Diego Bayfront	​	1.24%	​	12/09/2023	​	​	220,000	​	​	220,000
Credit Facility (2)	​	Unsecured	​	2.50%	​	04/14/2023	​	​	50,000	​	​	50,000
Total Variable Rate Debt	​	​	​	​	​	​	​	​	270,000	​	​	270,000
​	​	​	​	​	​	​	​	​	​	​	​	​
TOTAL CONSOLIDATED DEBT	​	​	​	​	​	​	​	$	1,021,247	​	$	1,002,058
​	​	​	​	​	​	​	​	​	​	​	​	​
Preferred Stock	​	​	​	​	​	​	​	​	​	​	​	​
Series E cumulative redeemable preferred	​	​	​	6.95%	​	perpetual	​	$	115,000	​	​	​
Series F cumulative redeemable preferred	​	​	​	6.45%	​	perpetual	​	​	75,000	​	​	​
Total Preferred Stock	​	​	​	​	​	​	​	$	190,000	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​
Debt Statistics	​	​	​	​	​	​	​	​	​	​	​	​
% Fixed Rate Debt	​	​	​	​	​	​	​	​	73.6	%	​	​
% Floating Rate Debt	​	​	​	​	​	​	​	​	26.4	%	​	​
Average Interest Rate (5)	​	​	​	​	​	​	​	​	4.00	%	​	​
Weighted Average Maturity of Debt (4)	​	​	​	​	​	​	​	​	3.6 years	​	​	​

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(1)	The mortgage secured by the Hilton Times Square matures in November 2020, and is available to be repaid without penalty beginning in August 2020. The Company has not made a payment on this loan since April 2020, and is currently in default. The Company is working with the lender to explore various options in advance of the upcoming maturity, which could include a negotiated transfer of the hotel to the lender or the hotel's ground lessors or a discounted payoff of the loan.
(2)	In July 2020, the Company executed an amendment to the agreement governing its revolving credit facility and term loan facilities, providing covenant relief through the first quarter of 2021, with the first quarterly covenant test as of the period ended June 30, 2021. Under the terms of the amended agreement, a 25-basis point LIBOR floor was added for the remaining term of the facilities and the applicable LIBOR spread will be fixed during the covenant relief period. The Company had previously entered into agreements to fix the LIBOR rate of the term loan facilities. The interest rates presented reflect the terms of the amended agreement.
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(3)	In July 2020, the Company executed amendments to the agreement governing the Senior Notes, providing covenant relief through the first quarter of 2021, with the first quarterly covenant test as of the period ended June 30, 2021. Under the terms of the amended agreement, there will be a 1.00% increase in the annual interest rate of the Senior Notes during the covenant relief period which will decrease to 0.75% following the covenant relief period until the Company’s leverage ratio is below 5.0x. The interest rates presented reflect the terms of the amended agreement.
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(4)	At this time, the Company intends to exercise all three of its available one-year options to extend the maturity date of the $220.0 million loan secured by the Hilton San Diego Bayfront from December 2020 to December 2023. By extending this loan, the Company's weighted average maturity of debt increases from 2.9 years to 3.6 years.
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(5)	Average Interest Rate is calculated based on rates at June 30, 2020, and includes the effect of the Company's interest rate derivative agreements, as well as the effect of the recently executed unsecured debt amended agreements.
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CAPITALIZATION		​	Page 21
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Supplemental Financial InformationAugust 4, 2020

Consolidated Amortization and Debt Maturity Schedule

As of June 30, 2020

(1)	At this time, the Company intends to exercise all three of its available one-year options to extend the maturity date of the $220.0 million loan secured by the Hilton San Diego Bayfront from December 2020 to December 2023.
(2)	Percent of Current Total Capitalization is calculated by dividing the sum of scheduled principal amortization and maturity payments by the June 30, 2020 consolidated total capitalization as presented on page 20.
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CAPITALIZATION		​	Page 22
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Supplemental Financial InformationAugust 4, 2020

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PROPERTY-LEVEL DATA

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PROPERTY-LEVEL DATA		​	Page 23
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Supplemental Financial InformationAugust 4, 2020

Hotel Information as of August 4, 2020

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Hotel			****	Location	****	Brand	****	Number ofRooms	****	% of TotalRooms	****	Interest	​	Open / Suspension<br><br>Date (1)	****	Resumption Date (1)	****	Year Acquired
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
1		Hilton San Diego Bayfront (2) (3)	​	California	​	Hilton	​	1,190	​	11.91%	​	Leasehold	​	March 23, 2020	​	​	​	2011
2	​	Boston Park Plaza	​	Massachusetts	​	Independent	​	1,060	​	10.61%	​	Fee Simple	​	Open	​	N/A	​	2013
3	​	Hyatt Regency San Francisco	​	California	​	Hyatt	​	821	​	8.22%	​	Fee Simple	​	March 22, 2020	​	​	​	2013
4	​	Renaissance Washington DC	​	Washington DC	​	Marriott	​	807	​	8.08%	​	Fee Simple	​	March 26, 2020	​	​	​	2005
5	​	Renaissance Orlando at SeaWorld®	​	Florida	​	Marriott	​	781	​	7.82%	​	Fee Simple	​	March 20, 2020	​	​	​	2005
6	​	Wailea Beach Resort	​	Hawaii	​	Marriott	​	547	​	5.48%	​	Fee Simple	​	March 25, 2020	​	​	​	2014
7	​	Renaissance Los Angeles Airport	​	California	​	Marriott	​	502	​	5.03%	​	Fee Simple	​	Open	​	N/A	​	2007
8	​	JW Marriott New Orleans (4)	​	Louisiana	​	Marriott	​	501	​	5.02%	​	Fee Simple	​	March 28, 2020	​	July 14, 2020	​	2011
9	​	Hilton Times Square (3)	​	New York	​	Hilton	​	478	​	4.79%	​	Leasehold	​	June 30, 2020	​	​	​	2006
10	​	Hyatt Centric Chicago Magnificent Mile (3)	​	Illinois	​	Hyatt	​	419	​	4.20%	​	Leasehold	​	April 6, 2020	​	July 13, 2020	​	2012
11	​	Marriott Boston Long Wharf	​	Massachusetts	​	Marriott	​	415	​	4.15%	​	Fee Simple	​	March 12, 2020	​	July 7, 2020	​	2007
12	​	Renaissance Long Beach	​	California	​	Marriott	​	374	​	3.74%	​	Fee Simple	​	Open	​	N/A	​	2005
13	​	Embassy Suites Chicago	​	Illinois	​	Hilton	​	368	​	3.68%	​	Fee Simple	​	April 1, 2020	​	July 1, 2020	​	2002
14	​	Hilton Garden Inn Chicago Downtown/Magnificent Mile	​	Illinois	​	Hilton	​	361	​	3.61%	​	Fee Simple	​	March 27, 2020	​	​	​	2012
15	​	Renaissance Westchester	​	New York	​	Marriott	​	348	​	3.48%	​	Fee Simple	​	April 4, 2020	​	​	​	2010
16	​	Embassy Suites La Jolla	​	California	​	Hilton	​	340	​	3.40%	​	Fee Simple	​	Open	​	N/A	​	2006
17	​	Hilton New Orleans St. Charles	​	Louisiana	​	Hilton	​	252	​	2.52%	​	Fee Simple	​	March 28, 2020	​	July 13, 2020	​	2013
18	​	Marriott Portland	​	Oregon	​	Marriott	​	249	​	2.49%	​	Fee Simple	​	March 27, 2020	​	​	​	2000
19	​	Oceans Edge Resort & Marina	​	Florida	​	Independent	​	175	​	1.75%	​	Fee Simple	​	March 22, 2020	​	June 4, 2020	​	2017
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Total 19 Hotel Portfolio	​	​	​	​	​	9,988	​	100%	​	​	​	​	​	​	​	​

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(1)	In March 2020, the COVID-19 outbreak was declared a National Public Health Emergency, which led to material group cancellations, corporate and government travel restrictions and a significant decline in transient demand. As a result of these cancellations, restrictions and the health concerns related to COVID-19, the Company determined that it was in the best interest of its hotel employees and the communities in which its hotels operate to temporarily suspend operations at the majority of its hotels. As of the date of this release, operations continue to be temporarily suspended at nine of the Company’s hotels, and 10 hotels are operating under a significantly reduced capacity.
(2)	The Company owns 75% of the joint venture that owns the Hilton San Diego Bayfront.
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(3)	Assuming the full exercise of all lease extensions, the ground leases at the Hilton San Diego Bayfront, the Hilton Times Square and the Hyatt Centric Chicago Magnificent Mile mature in 2071, 2091 and 2097, respectively.
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(4)	Hotel is subject to a municipal airspace lease that matures in 2044 and applies only to certain balcony space that is not integral to the hotel operation.
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PROPERTY-LEVEL DATA		​	Page 24
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Supplemental Financial InformationAugust 4, 2020

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PROPERTY-LEVEL OPERATING STATISTICS

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PROPERTY-LEVEL OPERATING STATISTICS		​	Page 25
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Supplemental Financial InformationAugust 4, 2020

Property-Level Operating Statistics

April 2020/2019

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​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	ADR							​	Occupancy					​	​	RevPAR
​	​	Hotels sorted by number of rooms	​	April							​	April					​	April
​	​	​		2020		​	****	2019	****	Change		2020	****	2019	****	Change		2020		****	2019		****	Change
1	​	Boston Park Plaza	​	$	140.80	​	$	235.37	​	-40.2%	​	3.8%	​	95.4%	​	-96.0%	​	$	5.35	​	$	224.54	​	-97.6%
2	​	Renaissance Los Angeles Airport	​	$	111.94	​	$	143.87	​	-22.2%	​	10.5%	​	92.5%	​	-88.6%	​	$	11.75	​	$	133.08	​	-91.2%
3	​	Hilton Times Square	​	$	109.93	​	$	292.47	​	-62.4%	​	3.6%	​	99.4%	​	-96.4%	​	$	3.96	​	$	290.72	​	-98.6%
4	​	Renaissance Long Beach	​	$	106.42	​	$	207.17	​	-48.6%	​	12.9%	​	83.1%	​	-84.5%	​	$	13.73	​	$	172.16	​	-92.0%
5	​	Embassy Suites La Jolla	​	$	96.39	​	$	199.16	​	-51.6%	​	15.5%	​	89.4%	​	-82.7%	​	$	14.94	​	$	178.05	​	-91.6%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	5 Hotels Open in Q2 2020	​	$	112.13	​	$	221.68	​	-49.4%	​	7.7%	​	93.2%	​	-91.7%	​	$	8.63	​	$	206.61	​	-95.8%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	14 Hotels Suspended Operations in Q1 or Q2	​	$	—	​	$	251.21	​	-100.0%	​	0.0%	​	87.2%	​	-100.0%	​	$	—	​	$	219.06	​	-100.0%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Sold Hotel: (1)	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Renaissance Harborplace	​	$	129.11	​	$	183.87	​	-29.8%	​	2.6%	​	56.7%	​	-95.4%	​	$	3.36	​	$	104.25	​	-96.8%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	20 Hotel Portfolio (2)	​	$	111.02	​	$	240.41	​	-53.8%	​	2.2%	​	86.9%	​	-97.5%	​	$	2.44	​	$	208.92	​	-98.8%

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(1)	Sold Hotel includes the Renaissance Harborplace, which the Company classified as held for sale at June 30, 2020, and subsequently sold in July 2020.
(2)	20 Hotel Portfolio includes all hotels owned by the Company as of June 30, 2020.
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PROPERTY-LEVEL OPERATING STATISTICS		​	Page 26
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Supplemental Financial InformationAugust 4, 2020

Property-Level Operating Statistics

May 2020/2019

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​	​	​	​	ADR							​	Occupancy					​	​	RevPAR
​	​	Hotels sorted by number of rooms	​	May							​	May					​	May
​	​	​		2020		​	****	2019	****	Change		2020	****	2019	****	Change		2020		****	2019		****	Change
1	​	Boston Park Plaza	​	$	133.25	​	$	250.01	​	-46.7%	​	3.4%	​	97.3%	​	-96.5%	​	$	4.53	​	$	243.26	​	-98.1%
2	​	Renaissance Los Angeles Airport	​	$	117.15	​	$	140.26	​	-16.5%	​	12.5%	​	91.1%	​	-86.3%	​	$	14.64	​	$	127.78	​	-88.5%
3	​	Hilton Times Square	​	$	95.01	​	$	310.83	​	-69.4%	​	7.5%	​	99.2%	​	-92.4%	​	$	7.13	​	$	308.34	​	-97.7%
4	​	Renaissance Long Beach	​	$	108.48	​	$	186.78	​	-41.9%	​	28.4%	​	74.8%	​	-62.0%	​	$	30.81	​	$	139.71	​	-77.9%
5	​	Embassy Suites La Jolla	​	$	95.38	​	$	202.48	​	-52.9%	​	27.0%	​	83.4%	​	-67.6%	​	$	25.75	​	$	168.87	​	-84.8%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	5 Hotels Open in Q2 2020	​	$	107.70	​	$	229.23	​	-53.0%	​	12.1%	​	91.7%	​	-86.8%	​	$	13.03	​	$	210.20	​	-93.8%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	14 Hotels Suspended Operations in Q1 or Q2	​	$	—	​	$	256.95	​	-100.0%	​	0.0%	​	84.4%	​	-100.0%	​	$	—	​	$	216.87	​	-100.0%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Sold Hotel: (1)	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Renaissance Harborplace	​	$	79.69	​	$	175.89	​	-54.7%	​	13.3%	​	74.1%	​	-82.1%	​	$	10.60	​	$	130.33	​	-91.9%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	20 Hotel Portfolio (2)	​	$	102.05	​	$	245.12	​	-58.4%	​	3.9%	​	85.7%	​	-95.4%	​	$	3.98	​	$	210.07	​	-98.1%

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(1)	Sold Hotel includes the Renaissance Harborplace, which the Company classified as held for sale at June 30, 2020, and subsequently sold in July 2020.
(2)	20 Hotel Portfolio includes all hotels owned by the Company as of June 30, 2020.
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PROPERTY-LEVEL OPERATING STATISTICS		​	Page 27
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Supplemental Financial InformationAugust 4, 2020

Property-Level Operating Statistics

June 2020/2019

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​	​	​	​	ADR							​	Occupancy					​	​	RevPAR
​	​	Hotels sorted by number of rooms	​	June							​	June					​	June
​	​	​		2020		​	****	2019	****	Change		2020	****	2019	****	Change		2020		****	2019		****	Change
1	​	Boston Park Plaza	​	$	137.15	​	$	252.80	​	-45.7%	​	5.5%	​	98.2%	​	-94.4%	​	$	7.54	​	$	248.25	​	-97.0%
2	​	Renaissance Los Angeles Airport	​	$	117.61	​	$	156.10	​	-24.7%	​	17.8%	​	94.0%	​	-81.1%	​	$	20.93	​	$	146.73	​	-85.7%
3	​	Hilton Times Square	​	$	146.39	​	$	309.74	​	-52.7%	​	2.7%	​	99.1%	​	-97.3%	​	$	3.95	​	$	306.95	​	-98.7%
4	​	Renaissance Long Beach (1)	​	$	107.11	​	$	214.04	​	-50.0%	​	22.6%	​	89.3%	​	-74.7%	​	$	24.21	​	$	191.14	​	-87.3%
5	​	Embassy Suites La Jolla	​	$	111.79	​	$	222.62	​	-49.8%	​	38.8%	​	94.0%	​	-58.7%	​	$	43.37	​	$	209.26	​	-79.3%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	5 Hotels Open in Q2 2020 (1)	​	$	117.23	​	$	237.18	​	-50.6%	​	13.7%	​	95.9%	​	-85.7%	​	$	16.06	​	$	227.46	​	-92.9%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	14 Hotels Suspended Operations in Q1 or Q2	​	$	246.41	​	$	260.40	​	-5.4%	​	1.0%	​	87.7%	​	-98.9%	​	$	2.46	​	$	228.37	​	-98.9%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Sold Hotel: (2)	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Renaissance Harborplace	​	$	106.96	​	$	169.85	​	-37.0%	​	13.5%	​	76.5%	​	-82.4%	​	$	14.44	​	$	129.94	​	-88.9%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	20 Hotel Portfolio (3)	​	$	110.99	​	$	249.34	​	-55.5%	​	5.0%	​	89.2%	​	-94.4%	​	$	5.55	​	$	222.41	​	-97.5%

​

(1)	Excludes the effects of a $(0.4) million adjustment to airline crew room revenue recorded in June 2020.
(2)	Sold Hotel includes the Renaissance Harborplace, which the Company classified as held for sale at June 30, 2020, and subsequently sold in July 2020.
---	---
(3)	20 Hotel Portfolio includes all hotels owned by the Company as of June 30, 2020.
---	---

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PROPERTY-LEVEL OPERATING STATISTICS		​	Page 28
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Supplemental Financial InformationAugust 4, 2020

Property-Level Operating Statistics

Q2 2020/2019

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​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	ADR							​	Occupancy					​	​	RevPAR
​	​	Hotels sorted by number of rooms	​	Three Months Ended June 30,							​	Three Months Ended June 30,					​	Three Months Ended June 30,
​	​	​		2020		​	****	2019	****	Change		2020	****	2019	****	Change		2020		****	2019		****	Change
1	​	Boston Park Plaza	​	$	137.16	​	$	246.19	​	-44.3%	​	4.2%	​	97.0%	​	-95.7%	​	$	5.76	​	$	238.80	​	-97.6%
2	​	Renaissance Los Angeles Airport	​	$	116.02	​	$	146.75	​	-20.9%	​	13.6%	​	92.5%	​	-85.3%	​	$	15.78	​	$	135.74	​	-88.4%
3	​	Hilton Times Square	​	$	108.63	​	$	304.41	​	-64.3%	​	4.6%	​	99.2%	​	-95.4%	​	$	5.00	​	$	301.97	​	-98.3%
4	​	Renaissance Long Beach (1)	​	$	107.59	​	$	203.31	​	-47.1%	​	21.4%	​	82.3%	​	-74.0%	​	$	23.02	​	$	167.32	​	-86.2%
5	​	Embassy Suites La Jolla	​	$	103.32	​	$	208.40	​	-50.4%	​	27.1%	​	88.9%	​	-69.5%	​	$	28.00	​	$	185.27	​	-84.9%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	5 Hotels Open in Q2 2020 (1)	​	$	112.56	​	$	229.44	​	-50.9%	​	11.2%	​	93.6%	​	-88.0%	​	$	12.61	​	$	214.76	​	-94.1%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	14 Hotels Suspended Operations in Q1 or Q2	​	$	—	​	$	256.20	​	-100.0%	​	0.0%	​	86.4%	​	-100.0%	​	$	—	​	$	221.36	​	-100.0%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Sold Hotel: (2)	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Renaissance Harborplace	​	$	96.35	​	$	175.84	​	-45.2%	​	9.8%	​	69.2%	​	-85.8%	​	$	9.44	​	$	121.68	​	-92.2%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	20 Hotel Portfolio (3)	​	$	107.78	​	$	244.99	​	-56.0%	​	3.7%	​	87.3%	​	-95.8%	​	$	3.99	​	$	213.88	​	-98.1%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​

​

(1)	Excludes the effects of a $(0.4) million adjustment to airline crew room revenue recorded in June 2020.
(2)	Sold Hotel includes the Renaissance Harborplace, which the Company classified as held for sale at June 30, 2020, and subsequently sold in July 2020.
---	---
(3)	20 Hotel Portfolio includes all hotels owned by the Company as of June 30, 2020.
---	---

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PROPERTY-LEVEL OPERATING STATISTICS		​	Page 29
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Supplemental Financial InformationAugust 4, 2020

Property-Level Operating Statistics

Q2 YTD 2020/2019

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​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	ADR							​	Occupancy					​	RevPAR
​	​	Hotels sorted by number of rooms	Six Months Ended June 30,							​	Six Months Ended June 30,					​	Six Months Ended June 30,
​	​	​	2020		​	2019		​	Change	​	2020	****	2019	****	Change		2020		****	2019		****	Change
1	​	Boston Park Plaza	$	146.97	​	$	205.16	​	-28.4%	​	30.0%	​	88.9%	​	-66.3%	​	$	44.09	​	$	182.39	​	-75.8%
2	​	Renaissance Los Angeles Airport	$	137.59	​	$	147.39	​	-6.6%	​	43.9%	​	90.3%	​	-51.4%	​	$	60.40	​	$	133.09	​	-54.6%
3	​	Hilton Times Square	$	163.53	​	$	257.69	​	-36.5%	​	40.5%	​	99.1%	​	-59.1%	​	$	66.23	​	$	255.37	​	-74.1%
4	​	Renaissance Long Beach (1)	$	168.51	​	$	198.07	​	-14.9%	​	44.0%	​	82.5%	​	-46.7%	​	$	74.14	​	$	163.41	​	-54.6%
5	​	Embassy Suites La Jolla	$	166.73	​	$	201.98	​	-17.5%	​	49.9%	​	88.3%	​	-43.5%	​	$	83.20	​	$	178.35	​	-53.4%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	5 Hotels Open in Q2 2020 (1)	$	154.51	​	$	203.37	​	-24.0%	​	38.7%	​	90.0%	​	-57.0%	​	$	59.80	​	$	183.03	​	-67.3%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	14 Hotels Suspended Operations in Q1 or Q2	$	249.08	​	$	252.87	​	-1.5%	​	29.7%	​	82.8%	​	-64.1%	​	$	73.98	​	$	209.38	​	-64.7%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Sold Hotel: (2)	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Renaissance Harborplace	$	134.76	​	$	168.84	​	-20.2%	​	27.0%	​	55.9%	​	-51.7%	​	$	36.39	​	$	94.38	​	-61.4%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	20 Hotel Portfolio (3)	$	213.03	​	$	235.61	​	-9.6%	​	31.9%	​	83.1%	​	-61.6%	​	$	67.96	​	$	195.79	​	-65.3%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​

​

(1)	Excludes the effects of a $(0.4) million adjustment to airline crew room revenue recorded in June 2020.
(2)	Sold Hotel includes the Renaissance Harborplace, which the Company classified as held for sale at June 30, 2020, and subsequently sold in July 2020.
---	---
(3)	20 Hotel Portfolio includes all hotels owned by the Company as of June 30, 2020.
---	---

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PROPERTY-LEVEL OPERATING STATISTICS		​	Page 30
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Supplemental Financial InformationAugust 4, 2020

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PROPERTY-LEVEL ADJUSTED EBITDAre &

ADJUSTED EBITDAre MARGINS

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PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS		​	Page 31
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Supplemental Financial InformationAugust 4, 2020

Property-Level Adjusted EBITDAre and Adjusted EBITDAre Margins

Q2 2020

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​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Hotels sorted by number of rooms	​	Three Months Ended June 30, 2020
​	​	(In thousands)	​	​		​	​		​	Plus:		​	Plus:		​	Plus:		​	Equals:		​	Hotel
​	​	​	​	Total		​	Net Income /		​	Other		​	​		​	​		​	Hotel		​	Adjusted EBITDAre
​	​	​		Revenues		****	(Loss)		****	Adjustments (1)		****	Depreciation		****	Interest Expense		****	Adjusted EBITDAre (2)		****	Margins (2)
1		Boston Park Plaza	​	$	646	​	$	(9,438)	​	$	71	​	$	4,514	​	$	—	​	$	(4,853)	​	-751.2%
2	​	Renaissance Los Angeles Airport	​	​	875	​	​	(2,293)	​	​	7	​	​	1,070	​	​	—	​	​	(1,216)	​	-139.0%
3	​	Hilton Times Square	​	​	227	​	​	(6,486)	​	​	73	​	​	813	​	​	1,190	​	​	(4,410)	​	-1942.7%
4	​	Renaissance Long Beach	​	​	666	​	​	(2,027)	​	​	71	​	​	971	​	​	—	​	​	(985)	​	-147.9%
5	​	Embassy Suites La Jolla	​	​	1,065	​	​	(2,169)	​	​	—	​	​	1,052	​	​	622	​	​	(495)	​	-46.5%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	5 Hotels Open in Q2 2020	​	​	3,479	​	​	(22,413)	​	​	222	​	​	8,420	​	​	1,812	​	​	(11,959)	​	-343.7%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	14 Hotels Suspended Operations in Q1 or Q2	​	​	3,911	​	​	(59,510)	​	​	522	​	​	24,573	​	​	4,107	​	​	(30,308)	​	-774.9%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Sold Hotel: (3)	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Renaissance Harborplace	​	​	641	​	​	(3,078)	​	​	—	​	​	1,293	​	​	—	​	​	(1,785)	​	-278.5%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	20 Hotel Portfolio (4)	​	$	8,031	​	$	(85,001)	​	$	744	​	$	34,286	​	$	5,919	​	$	(44,052)	​	-548.5%

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PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS		​	Page 32
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Supplemental Financial InformationAugust 4, 2020

Property-Level Adjusted EBITDAre and Adjusted EBITDAre Margins

Q2 YTD 2020

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​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Hotels sorted by number of rooms	​	For the Six Months Ended June 30, 2020
​	​	(In thousands)	​	​		​	​		​	Plus:		​	Plus:		​	Plus:		​	Equals:		​	Hotel
​	​	​	​	Total		​	Net Income /		​	Other		​	​		​	​		​	Hotel		​	Adjusted EBITDAre
​	​	​		Revenues		****	(Loss)		****	Adjustments (5)		****	Depreciation		****	Interest Expense		****	Adjusted EBITDAre (2)		****	Margins (2)
1		Boston Park Plaza	​	$	12,003	​	$	(16,209)	​	$	71	​	$	9,028	​	$	—	​	$	(7,110)	​	-59.2%
2	​	Renaissance Los Angeles Airport	​	​	7,521	​	​	(2,769)	​	​	7	​	​	2,133	​	​	—	​	​	(629)	​	-8.4%
3	​	Hilton Times Square	​	​	7,147	​	​	(13,945)	​	​	131	​	​	3,291	​	​	2,383	​	​	(8,140)	​	-113.9%
4	​	Renaissance Long Beach	​	​	6,431	​	​	(2,138)	​	​	71	​	​	1,961	​	​	—	​	​	(106)	​	-1.6%
5	​	Embassy Suites La Jolla	​	​	6,056	​	​	(2,361)	​	​	—	​	​	2,104	​	​	1,248	​	​	991	​	16.4%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	5 Hotels Open in Q2 2020	​	​	39,158	​	​	(37,422)	​	​	280	​	​	18,517	​	​	3,631	​	​	(14,994)	​	-38.3%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	14 Hotels Suspended Operations in Q1 or Q2	​	​	153,818	​	​	(66,211)	​	​	2	​	​	49,637	​	​	8,677	​	​	(7,895)	​	-5.1%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Sold Hotel: (3)	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Renaissance Harborplace	​	​	6,245	​	​	(5,370)	​	​	(57)	​	​	2,622	​	​	—	​	​	(2,805)	​	-44.9%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	20 Hotel Portfolio (4)	​	$	199,221	​	$	(109,003)	​	$	225	​	$	70,776	​	$	12,308	​	$	(25,694)	​	-12.9%

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PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS		​	Page 33
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Supplemental Financial InformationAugust 4, 2020

Property-Level Adjusted EBITDAre and Adjusted EBITDAre Margins

Q2 and Q2 YTD 2020 Footnotes

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(1)	Other Adjustments for the second quarter of 2020 include: $(0.3) million in amortization of the operating lease right-of-use assets at the Hilton Garden Inn Chicago Downtown/Magnificent Mile, the Hilton San Diego Bayfront, the Hilton Times Square and the JW Marriott New Orleans; $(0.4) million in finance lease obligation interest - cash ground rent at the Hyatt Centric Chicago Magnificent Mile; a $(31,000) true-up in city taxes assessed on commercial rents at the Hyatt Regency San Francisco; a total of $1.1 million in severance recorded at a majority of the 20 Hotels; and a total of $0.3 million in prior year property tax net assessments at the Embassy Suites Chicago, the Hilton Garden Inn Chicago Downtown/Magnificent Mile and the Hyatt Centric Chicago Magnificent Mile.
(2)	Both Hotel Adjusted EBITDAre and Hotel Adjusted EBITDAre Margins are presented excluding any prior year property tax assessments and credits, net of any appeal fees. In the second quarter of 2020, total net assessments of $0.3 million were received at the Embassy Suites Chicago, the Hilton Garden Inn Chicago Downtown/Magnificent Mile and the Hyatt Centric Chicago Magnificent Mile. In addition, for the first six months of 2020, a total of $(0.1) million in prior year property tax credits, net of appeal fees were received at the Embassy Suites Chicago and the Renaissance Harborplace.
---	---
(3)	Sold Hotel includes the Renaissance Harborplace, which the Company classified as held for sale at June 30, 2020, and subsequently sold in July 2020.
---	---
(4)	20 Hotel Portfolio includes all hotels owned by the Company as of June 30, 2020.
---	---
(5)	Other Adjustments for the first six months of 2020 include: $(0.5) million in amortization of the operating lease right-of-use assets at the Hilton Garden Inn Chicago Downtown/Magnificent Mile, the Hilton San Diego Bayfront, the Hilton Times Square and the JW Marriott New Orleans; $(0.7) million in finance lease obligation interest - cash ground rent at the Hyatt Centric Chicago Magnificent Mile; $0.1 million in city taxes assessed on commercial rents at the Hyatt Regency San Francisco; a total of $1.1 million in severance recorded at a majority of the 20 Hotels; and a total of $0.2 million in prior year property tax net assessments at the Embassy Suites Chicago, the Hilton Garden Inn Chicago Downtown/Magnificent Mile, the Hyatt Centric Chicago Magnificent Mile and the Renaissance Harborplace.
---	---

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PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS		​	Page 34
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