8-K - SHO - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): May 8, 2020

Sunstone Hotel Investors, Inc.

(Exact Name of Registrant as Specified in Its Charter)



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


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

( 949 ) 330-4000

(Registrant’s telephone number including area code)

N/A

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

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, $0.01 par value	SHO	New York Stock Exchange
Series 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

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).


	Emerging growth company	☐

If an emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

Item 2.02.Results of Operations and Financial Condition.

On May 8, 2020, Sunstone Hotel Investors, Inc. (the “Company”) issued a press release regarding its financial results for the first quarter ended March 31, 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.

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

Item 9.01.Financial Statements and Exhibits.

(d) The following exhibits are furnished herewith:

EXHIBIT INDEX


Exhibit No.	****	Description
99.1		Press Release, dated May 8, 2020.
99.2		Supplemental Financial Information for the first quarter ended March 31, 2020.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	Sunstone Hotel Investors, Inc.

Date: May 8, 2020	By:	/s/ Bryan A. Giglia
		Bryan A. Giglia(Principal Financial Officer and Duly Authorized Officer)

		sho\_Ex99-1

Exhibit 99.1

2007 Logo Med

For Additional Information:

Bryan Giglia

Sunstone Hotel Investors, Inc.

(949) 382-3036

Aaron Reyes

Sunstone Hotel Investors, Inc.

(949) 382-3018

SUNSTONE HOTEL INVESTORS REPORTS RESULTS FOR FIRST QUARTER 2020

IRVINE, CA – May 8, 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 first quarter ended March 31, 2020.

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

| · | Net \(Loss\) Income:  Net loss was $162.5 million as compared to net income of $17.9 million in the first quarter of 2019. Excluding the impairment loss recognized during the first quarter of 2020, net loss would have been $47.2 million. |

| --- | --- | | · | 20 Hotel Portfolio RevPAR: 20 Hotel Portfolio RevPAR decreased 25.7% to $131.94. | | --- | --- | | · | 20 Hotel Portfolio Adjusted EBITDAre Margin: 20 Hotel Portfolio Adjusted EBITDAre Margin, excluding prior year property tax adjustments, net decreased 1,670 basis points to 9.6%. | | --- | --- | | · | Adjusted EBITDAre: Adjusted EBITDAre, excluding noncontrolling interest decreased 78.1% to $14.1 million. | | --- | --- | | · | Adjusted FFO: Adjusted FFO attributable to common stockholders per diluted share decreased 104.8% to $(0.01). | | --- | --- |

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.

John Arabia, President and Chief Executive Officer, stated, “In response to the unprecedented impact of COVID-19 on the lodging industry and our portfolio, we acted quickly to meet these significant challenges and position ourselves for the future. First, working with our hotel operators, and in consultation with various health authorities, we temporarily suspended operations at the majority of our hotels and significantly reduced operating expenses at those hotels that remain open and running at low occupancies. Second, we have postponed a large number of capital projects, while at the same time, we have accelerated a small number of operationally disruptive capital projects while the hotels have suspended operations. Third, we have paused both our share buyback activity and common stock distributions and put in place various cost-containment initiatives at our corporate headquarters. And finally, we are working with our top-tier bank group and note holders to not only provide us needed covenant relief, but also provide some flexibility to continue to manage our business with an eye on the future.”

Mr. Arabia continued, “Our strong balance sheet and liquidity position provide us with a long runway to endure this unprecedented operating environment. After taking the difficult, but necessary, steps to protect the company and to maximize liquidity, we have turned our attention to the future. We are working with our operators to modify hotel operations to adapt to, and best compete in, a new environment and we continue to work with our group customers to rebook or sell new group meetings at most of our hotels. With our financial strength, significant expertise, and strong partnerships with our operators and capital providers, I am confident in our ability to weather this historic storm. I greatly look forward to reopening our hotels, getting the talented and hard-working hotel teams back to work and welcoming our guests to our hotels and resorts as soon as appropriate.”

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

|  | Quarter Ended March 31, |  |  |  |  |  |  |  |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | | | 2020 | | | 2019 | | | Change | | | Net (Loss) Income | $ | (162.5) | | $ | 17.9 | | (1,007.1) | % | | (Loss) Income Attributable to Common Stockholders per Diluted Share | $ | (0.75) | | $ | 0.06 | | (1,350.0) | % | | 20 Hotel Portfolio RevPAR (1) | $ | 131.94 | | $ | 177.62 | | (25.7) | % | | 20 Hotel Portfolio Occupancy (1) | | 60.1 | % | | 78.9 | % | (1,880) | bps | | 20 Hotel Portfolio ADR (1) | $ | 219.54 | | $ | 225.12 | | (2.5) | % | | 20 Hotel Portfolio Adjusted EBITDAre Margin (1) (2) | | 9.6 | % | | 26.3 | % | (1,670) | bps | | Adjusted EBITDAre, excluding noncontrolling interest | $ | 14.1 | | $ | 64.5 | | (78.1) | % | | Adjusted FFO Attributable to Common Stockholders | $ | (1.4) | | $ | 47.5 | | (103.0) | % | | Adjusted FFO Attributable to Common Stockholders per Diluted Share | $ | (0.01) | | $ | 0.21 | | (104.8) | % |

| \(1\) | The 20 Hotel Portfolio includes all hotels owned by the Company as of March 31, 2020. |

---	---		(2)	The 20 Hotel Portfolio Adjusted EBITDAre Margins exclude any prior year property tax adjustments, net.

Recent Developments

Due to the prevailing government mandated restrictions on travel and public gatherings since the outbreak of COVID-19, the Company has experienced a material reduction in all segments of hotel demand and has temporarily suspended operations at certain of its hotels. The Company estimates that approximately $34.6 million of March 2020 revenue was lost due to group cancellations, with an additional $33.5 million lost in April 2020. As a percentage of budgeted group room nights, cancellations for the second and third quarters of 2020 equate to 72% and 18%, respectively. As of the date of this release, the Company has not experienced any meaningful group cancellations in the fourth quarter of 2020. These figures could increase depending on the duration of travel restrictions and how quickly group customers return. Additionally, both business transient and leisure business have all but ceased in April. The Company recognized $10.1 million of additional expenses since the outbreak of COVID-19 during the first quarter of 2020, related to wages and benefits for furloughed or laid off hotel employees. 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 first quarter of 2020 to the first quarter of 2019 are not meaningful.

In response to the uncertainty related to the ultimate impact on travel demand since the outbreak of COVID-19, the Company has taken, and is continuing to take, aggressive action to preserve liquidity and mitigate the ongoing operational and financial impact on its business including: | · | Working closely with its third-party managers to materially reduce hotel operating expenses through the implementation of stringent operational cost containment measures, including significantly reduced staffing levels, limited food and beverage offerings, elimination of non-essential hotel services and the closure of unoccupied floors. | | --- | --- | | · | Temporarily suspending operations at 14 of its 20 hotels as of May 8, 2020. | | --- | --- | | · | Deferring a portion of its planned 2020 non-essential capital improvements into its portfolio. The Company expects to accelerate or initiate capital investment projects at certain hotels in order to opportunistically take advantage of the suspended operations and current demand environment to perform otherwise disruptive renovations. These projects will take place at the Marriott Portland, Renaissance Orlando at SeaWorld®, Renaissance Washington DC and the Wailea Beach Resort, and will adhere 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. | | --- | --- | | · | Suspending the Company’s quarterly dividend on its common stock. On April 15, 2020, the Company paid total stock dividends of $14.0 million for the first quarter of 2020, including $10.8 million paid to its common stockholders. 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. | | --- | --- | | · | Suspending the Company’s stock repurchase program. During the first quarter of 2020, the Company repurchased 9.8 million shares of its common stock at an average purchase price of $10.61 per share. Approximately $400.0 million of authorized capacity remains under the Company’s stock repurchase program. Future repurchases will depend on various factors, including the Company’s obligations under its various financing agreements, future capital needs as well as the price of the Company’s common and preferred stock. | | --- | --- |

Initiating a $300.0 million draw under the revolving portion of the Company’s amended credit agreement as a precautionary measure to increase the Company’s cash position and preserve financial flexibility. Following such borrowing, the Company has $200.0 million of capacity available for additional borrowing under the revolving portion of its amended credit agreement. In addition, the Company is working with its lenders to obtain waivers of its unsecured debt financial covenants beginning with the second quarter of 2020, which is expected to provide covenant relief through the end of the first quarter of 2021.

Impairment Losses

During the first quarter of 2020, the Company recorded a total impairment loss of $115.4 million, including $107.9 million on the Hilton Times Square and $5.2 million on the Renaissance Westchester related to deteriorating profitability exacerbated by the effect of the COVID-19 outbreak. In addition, the Company recorded an impairment loss of $2.3 million related to the abandonment of a potential project to expand one of its hotels.

Balance Sheet/Liquidity Update

As of March 31, 2020, the Company had $900.9 million of cash and cash equivalents, including restricted cash of $53.5 million, total assets of $3.8 billion, including $2.8 billion of net investments in hotel properties, total consolidated debt of $1.3 billion and stockholders’ equity of $2.3 billion. Excluding the proceeds received from the $300.0 million draw on its credit facility, the Company had $600.9 million of cash and cash equivalents, including restricted cash of $53.5 million as of March 31, 2020.

2020 Operations Update

As of May 8, 2020, 14 of the Company’s 20 hotels have temporarily suspended operations. The hotels that were in operation for the entire month of April (the “Six Open Hotels”) were: Boston Park Plaza, Embassy Suites La Jolla, Hilton Times Square, Renaissance Harborplace, Renaissance Long Beach and Renaissance Los Angeles Airport. Preliminary April results include the following ($ in millions, except RevPAR and ADR):

|  | April |  |  |  |  |  |  |  |  |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | 2020 | | | 2019 | | | Change | | | | 20 Hotel Portfolio Total Revenue (1) | $ | 1.1 | | $ | 95.8 | | | (98.9) | % | | 20 Hotel Portfolio Room Revenue (1) | $ | 0.8 | | $ | 66.4 | | | (98.9) | % | | 20 Hotel Portfolio RevPAR (1) | $ | 2.40 | | $ | 208.92 | | | (98.9) | % | | 20 Hotel Portfolio Occupancy (1) | | 2.2 | % | | 86.9 | % | | (8,470) | bps | | 20 Hotel Portfolio ADR (1) | $ | 109.19 | | $ | 240.41 | | | (54.6) | % | | 6 Open Hotels Total Revenue | $ | 1.1 | | $ | 25.6 | | | (95.9) | % | | 6 Open Hotels Room Revenue | $ | 0.7 | | $ | 19.0 | | | (96.1) | % | | 6 Open Hotels RevPAR | $ | 7.36 | | $ | 187.57 | | | (96.1) | % | | 6 Open Hotels Occupancy | | 6.7 | % | | 86.4 | % | | (7,970) | bps | | 6 Open Hotels ADR | $ | 109.90 | | $ | 217.10 | | | (49.4) | % |

| \(1\) | The 20 Hotel Portfolio includes all hotels owned by the Company as of March 31, 2020. In addition to the Six Open Hotels, three other hotels were open with reduced operations during the first week of April. |

| --- | --- |

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.

Dividend Update

On May 1, 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 July 15, 2020 to stockholders of record as of June 30, 2020.

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.

Supplemental Disclosures

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

Earnings Call

The Company will host a conference call to discuss first quarter 2020 financial results on May 8, 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. Alternatively, investors may dial 1-786-789-4797 and reference confirmation code 7658286 to listen to the live call. A replay of the webcast will also be archived on the website.

About Sunstone Hotel Investors, Inc.

Sunstone Hotel Investors, Inc. is a lodging real estate investment trust (“REIT”) that as of the date of this release has interests in 20 hotels comprised of 10,610 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.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,” “will” and other similar terms and phrases, including opinions, references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: the short-term and long-term impact on the Company’s business of the COVID-19 global pandemic and the response of governments and the Company to the outbreak; 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 20 Hotels the Company has interests in as of the date of this release; 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 release, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.

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

Non-GAAP Financial Measures

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

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

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

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

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

| · | 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. |

| --- | --- |

| · | 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. |

| --- | --- |

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

| --- | --- |

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

| --- | --- |

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 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.

Sunstone Hotel Investors, Inc.

Consolidated Balance Sheets

(In thousands, except share data)

		December 31,
		2019

Assets
Current assets:
Cash and cash equivalents	847,445	$	816,857
Restricted cash	53,485		48,116
Accounts receivable, net	23,134		35,209
Prepaid expenses and other current assets	14,192		13,550
Total current assets	938,256		913,732
Investment in hotel properties, net	2,756,412		2,872,353
Finance lease right-of-use asset, net	47,284		47,652
Operating lease right-of-use assets, net	41,198		60,629
Deferred financing costs, net	2,511		2,718
Other assets, net	13,879		21,890
Total assets	3,799,540	$	3,918,974
Liabilities and Equity
Current liabilities:
Accounts payable and accrued expenses	39,072	$	35,614
Accrued payroll and employee benefits	17,142		25,002
Dividends and distributions payable	13,984		135,872
Other current liabilities	33,831		46,955
Current portion of notes payable, net	82,189		82,109
Total current liabilities	186,218		325,552
Notes payable, less current portion, net	1,187,468		888,954
Finance lease obligation, less current portion	15,570		15,570
Operating lease obligations, less current portion	48,460		49,691
Other liabilities	24,818		18,136
Total liabilities	1,462,534		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 March 31, 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 March 31, 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, 215,541,134 shares issued and outstanding at March 31, 2020 and 224,855,351 shares issued and outstanding at December 31, 2019	2,155		2,249
Additional paid in capital	2,578,445		2,683,913
Retained earnings	1,156,394		1,318,455
Cumulative dividends and distributions	(1,633,763)		(1,619,779)
Total stockholders' equity	2,293,231		2,574,838
Noncontrolling interest in consolidated joint venture	43,775		46,233
Total equity	2,337,006		2,621,071
Total liabilities and equity	3,799,540	$	3,918,974

All values are in US Dollars.

Sunstone Hotel Investors, Inc.

Consolidated Statements of Operations

(In thousands, except per share data)

|  | Quarter Ended March 31, |  |  |  |

| --- | --- | --- | --- | --- | | | 2020 | | 2019 | | | | (unaudited) | | | | | Revenues | | | | | | Room | $ | 127,400 | $ | 171,858 | | Food and beverage | | 47,990 | | 69,113 | | Other operating | | 15,822 | | 16,709 | | Total revenues | | 191,212 | | 257,680 | | Operating expenses | | | | | | Room | | 44,245 | | 48,246 | | Food and beverage | | 41,760 | | 46,822 | | Other operating | | 3,764 | | 3,965 | | Advertising and promotion | | 12,462 | | 13,564 | | Repairs and maintenance | | 10,049 | | 10,282 | | Utilities | | 5,842 | | 6,665 | | Franchise costs | | 5,336 | | 6,839 | | Property tax, ground lease and insurance | | 20,051 | | 20,348 | | Other property-level expenses | | 28,845 | | 32,840 | | Corporate overhead | | 7,394 | | 7,516 | | Depreciation and amortization | | 36,746 | | 36,387 | | Impairment losses | | 115,366 | | — | | Total operating expenses | | 331,860 | | 233,474 | | Interest and other income | | 2,306 | | 4,924 | | Interest expense | | (17,507) | | (14,326) | | (Loss) income before income taxes | | (155,849) | | 14,804 | | Income tax (provision) benefit, net | | (6,670) | | 3,112 | | Net (loss) income | | (162,519) | | 17,916 | | Loss (income) from consolidated joint venture attributable to noncontrolling interest | | 458 | | (1,599) | | Preferred stock dividends | | (3,207) | | (3,207) | | (Loss) income attributable to common stockholders | $ | (165,268) | $ | 13,110 | | Basic and diluted per share amounts: | | | | | | Basic and diluted (loss) income attributable to common stockholders per common share | $ | (0.75) | $ | 0.06 | | Basic and diluted weighted average common shares outstanding | | 221,036 | | 227,219 | | Distributions declared per common share | $ | 0.05 | $ | 0.05 |

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 March 31, |  |  |  |

| --- | --- | --- | --- | --- | | | 2020 | | 2019 | | | Net (loss) income | $ | (162,519) | $ | 17,916 | | Operations held for investment: | | | | | | Depreciation and amortization | | 36,746 | | 36,387 | | Interest expense | | 17,507 | | 14,326 | | Income tax provision (benefit), net | | 6,670 | | (3,112) | | Impairment loss - hotel properties | | 113,064 | | — | | EBITDAre | | 11,468 | | 65,517 | | Operations held for investment: | | | | | | Amortization of deferred stock compensation | | 2,207 | | 2,122 | | Amortization of right-of-use assets and liabilities | | (261) | | (19) | | Finance lease obligation interest - cash ground rent | | (351) | | (589) | | Prior year property tax adjustments, net | | (81) | | 189 | | Impairment loss - abandoned development costs | | 2,302 | | — | | Noncontrolling interest: | | | | | | Loss (income) from consolidated joint venture attributable to noncontrolling interest | | 458 | | (1,599) | | Depreciation and amortization | | (804) | | (639) | | Interest expense | | (420) | | (560) | | Amortization of right-of-use asset and liability | | 72 | | 72 | | Impairment loss - abandoned development costs | | (449) | | — | | Adjustments to EBITDAre, net | | 2,673 | | (1,023) | | Adjusted EBITDAre, excluding noncontrolling interest | $ | 14,141 | $ | 64,494 |

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 March 31, |  |  |  |

| --- | --- | --- | --- | --- | | | 2020 | | 2019 | | | Net (loss) income | $ | (162,519) | $ | 17,916 | | Preferred stock dividends | | (3,207) | | (3,207) | | Operations held for investment: | | | | | | Real estate depreciation and amortization | | 36,122 | | 35,770 | | Impairment loss - hotel properties | | 113,064 | | — | | Noncontrolling interest: | | | | | | Loss (income) from consolidated joint venture attributable to noncontrolling interest | | 458 | | (1,599) | | Real estate depreciation and amortization | | (804) | | (639) | | FFO attributable to common stockholders | | (16,886) | | 48,241 | | Operations held for investment: | | | | | | Real estate amortization of right-of-use assets and liabilities | | 146 | | 151 | | Noncash interest on derivatives and finance lease obligations, net | | 6,080 | | 2,119 | | Prior year property tax adjustments, net | | (81) | | 189 | | Impairment loss - abandoned development costs | | 2,302 | | — | | Noncash income tax provision (benefit), net | | 7,415 | | (3,284) | | Noncontrolling interest: | | | | | | Real estate amortization of right-of-use asset and liability | | 72 | | 72 | | Impairment loss - abandoned development costs | | (449) | | — | | Adjustments to FFO attributable to common stockholders, net | | 15,485 | | (753) | | Adjusted FFO attributable to common stockholders | $ | (1,401) | $ | 47,488 | | FFO attributable to common stockholders per diluted share | $ | (0.08) | $ | 0.21 | | Adjusted FFO attributable to common stockholders per diluted share | $ | (0.01) | $ | 0.21 | | Basic weighted average shares outstanding | | 221,036 | | 227,219 | | Shares associated with unvested restricted stock awards | | — | | 260 | | Diluted weighted average shares outstanding | | 221,036 | | 227,479 |

Sunstone Hotel Investors, Inc.

Non-GAAP Financial Measures

Hotel Adjusted EBITDAre and Margins

(Unaudited and in thousands)

|  | Quarter Ended March 31, |  |  |  |

| --- | --- | --- | --- | --- | | | 2020 | | 2019 | | | 20 Hotel Portfolio Adjusted EBITDAre Margin, excluding prior year property tax adjustments, net (1) | | 9.6% | | 26.3% | | Total revenues | $ | 191,212 | $ | 257,680 | | Non-hotel revenues (2) | | (22) | | (23) | | Total Actual Hotel Revenues | | 191,190 | | 257,657 | | Sold hotel revenues (3) | | — | | (3,070) | | Total 20 Hotel Portfolio Revenues | $ | 191,190 | $ | 254,587 | | Net (loss) income | $ | (162,519) | $ | 17,916 | | Non-hotel revenues (2) | | (22) | | (23) | | Non-hotel operating expenses, net (4) | | (533) | | (767) | | Prior year property tax adjustments, net (5) | | (81) | | 189 | | Taxes assessed on commercial rents (6) | | 136 | | 360 | | Corporate overhead | | 7,394 | | 7,516 | | Depreciation and amortization | | 36,746 | | 36,387 | | Impairment loss | | 115,366 | | — | | Interest and other income | | (2,306) | | (4,924) | | Interest expense | | 17,507 | | 14,326 | | Income tax provision (benefit), net | | 6,670 | | (3,112) | | Actual Hotel Adjusted EBITDAre | | 18,358 | | 67,868 | | Sold hotel Adjusted EBITDAre (3) | | — | | (875) | | 20 Hotel Portfolio Adjusted EBITDAre, excluding prior year property tax adjustments, net | $ | 18,358 | $ | 66,993 |

| \(1\) | 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) | Prior year property tax adjustments, net for the first quarter of 2020 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 first quarter of 2019 includes an assessment of $0.2 million received at the Oceans Edge Resort & Marina. | | --- | --- | | (6) | Taxes assessed on commercial rents for the first quarter ended March 31, 2020 and 2019 include $0.1 million and $0.4 million, respectively, at the Hyatt Regency San Francisco. | | --- | --- |

		sho\_Ex99-2

Exhibit 99.2

Supplemental Financial Information<br>May 8, 2020

| Supplemental Financial Information<br>				<br>For the quarter ended March 31, 2020<br>				<br>May 8, 2020 |

| --- | | Supplemental Financial Information May 8, 2020 | | --- | Table of Contents | CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR | 2 | | --- | --- | | About Sunstone | 3 | | Forward-Looking Statement | 4 | | Non-GAAP Financial Measures | 5 | | CORPORATE FINANCIAL INFORMATION | 8 | | Condensed Consolidated Balance Sheets Q1 2020 – Q1 2019 | 9 | | Consolidated Statements of Operations Q1 2020/2019 | 11 | | Reconciliation of Net (Loss) Income to EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest Q1 2020/2019 | 12 | | Reconciliation of Net (Loss) Income to FFO and Adjusted FFO Attributable to Common Stockholders Q1 2020/2019 | 13 | | CAPITALIZATION | 14 | | Comparative Capitalization Q1 2020 – Q1 2019 | 15 | | Consolidated Debt Summary Schedule | 16 | | Consolidated Amortization and Debt Maturity Schedule as of March 31, 2020 | 17 | | PROPERTY-LEVEL DATA | 18 | | Hotel Information as of May 8, 2020 | 19 | | PROPERTY-LEVEL OPERATING STATISTICS | 20 | | Property-Level Operating Statistics January 2020/2019 | 21 | | Property-Level Operating Statistics February 2020/2019 | 22 | | Property-Level Operating Statistics March 2020/2019 | 23 | | PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS | 24 | | Property-Level Adjusted EBITDAre & Adjusted EBITDAre Margins January 2020/2019 | 25 | | Property-Level Adjusted EBITDAre & Adjusted EBITDAre Margins February 2020/2019 | 28 | | Property-Level Adjusted EBITDAre & Adjusted EBITDAre Margins March 2020/2019 | 31 | | Supplemental Financial Information May 8, 2020 | | --- |

CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR

| CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR | Page 2 |

| --- | --- | | Supplemental Financial Information May 8, 2020 | | --- |

About Sunstone

Sunstone Hotel Investors, Inc. (the “Company,” “we,” and “our”) (NYSE: SHO) is a lodging real estate investment trust (“REIT”) that as of May 8, 2020 has interests in 20 hotels comprised of 10,610 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.

Corporate Headquarters 200 Spectrum Center Drive, 21st Floor Irvine, CA 92618 (949) 330-4000

Company Contacts John 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 | CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR | Page 3 | | --- | --- | | Supplemental Financial Information May 8, 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 short-term and long-term impact on the Company’s business of the COVID-19 global pandemic and the response of governments and the Company to the outbreak; 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 20 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.

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

| CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR | Page 4 |

| --- | --- | | Supplemental Financial Information May 8, 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 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.

| CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR | Page 5 |

| --- | --- | | Supplemental Financial Information May 8, 2020 | | --- |

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. | | --- | --- | | · | 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. | | --- | --- | | · | Cumulative effect of a change in accounting principle: from time to time, the FASB promulgates new accounting standards that require the consolidated statement of operations to reflect the cumulative effect of a change in accounting principle. We exclude these one-time adjustments, which include the accounting impact from prior periods, because they do not reflect our actual performance for that period. | | --- | --- | | · | Other adjustments: we exclude other adjustments that we believe are outside the ordinary course of business because we do not believe these costs reflect our actual performance for the period and/or the ongoing operations of our hotels. Such items may include: lawsuit settlement costs; prior year property tax assessments or credits; the write-off of development costs associated with abandoned projects; property-level restructuring, severance and management transition costs; lease terminations; and property insurance proceeds or uninsured losses. | | --- | --- | 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 | CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR | Page 6 | | --- | --- | | Supplemental Financial Information May 8, 2020 | | --- |

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.

| CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR | Page 7 |

| --- | --- | | Supplemental Financial Information May 8, 2020 | | --- |

CORPORATE FINANCIAL INFORMATION

| CORPORATE FINANCIAL INFORMATION | Page 8 |

| --- | --- | | Supplemental Financial Information May 8, 2020 | | --- |

Condensed Consolidated Balance Sheets Q1 2020 – Q1 2019

| \(In thousands\) | March 31, 2020 \(1\) |  | December 31, 2019 \(2\) |  | September 30, 2019 \(3\) |  | June 30, 2019 \(4\) |  | March 31, 2019 \(5\) |  |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Assets | | | | | | | | | | | | Investment in hotel properties: | | | | | | | | | | | | Land | $ | 600,649 | $ | 601,181 | $ | 605,581 | $ | 605,581 | $ | 605,388 | | Buildings & improvements | | 2,800,187 | | 2,950,534 | | 2,968,241 | | 2,957,631 | | 2,950,723 | | Furniture, fixtures, & equipment | | 496,312 | | 506,754 | | 512,333 | | 497,082 | | 492,317 | | Other | | 71,327 | | 73,992 | | 68,677 | | 102,125 | | 88,305 | | | | 3,968,475 | | 4,132,461 | | 4,154,832 | | 4,162,419 | | 4,136,733 | | Less accumulated depreciation & amortization | | (1,212,063) | | (1,260,108) | | (1,243,980) | | (1,225,741) | | (1,189,937) | | | | 2,756,412 | | 2,872,353 | | 2,910,852 | | 2,936,678 | | 2,946,796 | | Finance lease right-of-use assets, net | | 47,284 | | 47,652 | | 48,019 | | 54,991 | | 55,359 | | Operating lease right-of-use assets, net | | 41,198 | | 60,629 | | 61,512 | | 62,380 | | 63,235 | | Other noncurrent assets, net | | 16,390 | | 24,608 | | 25,348 | | 27,029 | | 32,878 | | Current assets: | | | | | | | | | | | | Cash and cash equivalents | | 847,445 | | 816,857 | | 730,039 | | 741,503 | | 683,995 | | Restricted cash | | 53,485 | | 48,116 | | 46,206 | | 46,199 | | 50,746 | | Other current assets, net | | 37,326 | | 48,759 | | 58,380 | | 56,960 | | 57,648 | | Assets held for sale, net | | — | | — | | 18,481 | | — | | — | | Total assets | $ | 3,799,540 | $ | 3,918,974 | $ | 3,898,837 | $ | 3,925,740 | $ | 3,890,657 |

*Footnotes on following page

| CORPORATE FINANCIAL INFORMATION | Page 9 |

| --- | --- | | Supplemental Financial Information May 8, 2020 | | --- |

Condensed Consolidated Balance Sheets Q1 2020– Q1 2019 (cont.)

(In thousands)		December 31, 2019 (2)		September 30, 2019 (3)		June 30, 2019 (4)		March 31, 2019 (5)
Liabilities
Current liabilities:
Current portion of notes payable, net	82,189	$	82,109	$	6,271	$	6,167	$	6,064
Other current liabilities	104,029		243,443		114,805		115,024		106,318
Liabilities of assets held for sale	—		—		12,446		—		—
Total current liabilities	186,218		325,552		133,522		121,191		112,382
Notes payable, less current portion, net	1,187,468		888,954		966,496		968,090		969,657
Finance lease obligations, less current portion	15,570		15,570		15,571		27,120		27,064
Operating lease obligations, less current portion	48,460		49,691		50,905		52,097		53,276
Other liabilities	24,818		18,136		19,824		19,176		17,991
Total liabilities	1,462,534		1,297,903		1,186,318		1,187,674		1,180,370
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	2,155		2,249		2,249		2,282		2,286
Additional paid in capital	2,578,445		2,683,913		2,681,754		2,723,737		2,726,466
Retained earnings	1,156,394		1,318,455		1,274,039		1,243,002		1,199,039
Cumulative dividends and distributions	(1,633,763)		(1,619,779)		(1,483,907)		(1,469,456)		(1,454,838)
Total stockholders' equity	2,293,231		2,574,838		2,664,135		2,689,565		2,662,953
Noncontrolling interest in consolidated joint venture	43,775		46,233		48,384		48,501		47,334
Total equity	2,337,006		2,621,071		2,712,519		2,738,066		2,710,287
Total liabilities and equity	3,799,540	$	3,918,974	$	3,898,837	$	3,925,740	$	3,890,657

All values are in US Dollars. | (1) | As presented on Form 10-Q to be filed in May 2020. | | --- | --- | | (2) | As presented on Form 10-K filed on February 19, 2020. | | --- | --- | | (3) | As presented on Form 10-Q filed on November 5, 2019. | | --- | --- | | (4) | As presented on Form 10-Q filed on August 5, 2019. | | --- | --- | | (5) | As presented on Form 10-Q filed on May 8, 2019. | | --- | --- | | CORPORATE FINANCIAL INFORMATION | Page 10 | | --- | --- | | Supplemental Financial Information May 8, 2020 | | --- | Consolidated Statements of Operations Q1 2020/2019

|  | Three Months Ended March 31, |  |  |  |

| --- | --- | --- | --- | --- | | (In thousands, except per share data) | 2020 | | 2019 | | | Revenues | | | | | | Room | $ | 127,400 | $ | 171,858 | | Food and beverage | | 47,990 | | 69,113 | | Other operating | | 15,822 | | 16,709 | | Total revenues | | 191,212 | | 257,680 | | Operating expenses | | | | | | Room | | 44,245 | | 48,246 | | Food and beverage | | 41,760 | | 46,822 | | Other operating | | 3,764 | | 3,965 | | Advertising and promotion | | 12,462 | | 13,564 | | Repairs and maintenance | | 10,049 | | 10,282 | | Utilities | | 5,842 | | 6,665 | | Franchise costs | | 5,336 | | 6,839 | | Property tax, ground lease and insurance | | 20,051 | | 20,348 | | Other property-level expenses | | 28,845 | | 32,840 | | Corporate overhead | | 7,394 | | 7,516 | | Depreciation and amortization | | 36,746 | | 36,387 | | Impairment losses | | 115,366 | | — | | Total operating expenses | | 331,860 | | 233,474 | | Interest and other income | | 2,306 | | 4,924 | | Interest expense | | (17,507) | | (14,326) | | (Loss) income before income taxes | | (155,849) | | 14,804 | | Income tax (provision) benefit, net | | (6,670) | | 3,112 | | Net (loss) income | | (162,519) | | 17,916 | | Loss (income) from consolidated joint venture attributable to noncontrolling interest | | 458 | | (1,599) | | Preferred stock dividends | | (3,207) | | (3,207) | | (Loss) income attributable to common stockholders | $ | (165,268) | $ | 13,110 | | Basic and diluted per share amounts: | | | | | | Basic and diluted (loss) income attributable to common stockholders per common share | $ | (0.75) | $ | 0.06 | | Basic and diluted weighted average common shares outstanding | | 221,036 | | 227,219 | | Distributions declared per common share | $ | 0.05 | $ | 0.05 |

| CORPORATE FINANCIAL INFORMATION | Page 11 |

| --- | --- | | Supplemental Financial Information May 8, 2020 | | --- | Reconciliation of Net (Loss) Income to EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest Q1 2020/2019

|  | Three Months Ended March 31, |  |  |  |

| --- | --- | --- | --- | --- | | (In thousands) | | 2020 | | 2019 | | Net (loss) income | $ | (162,519) | $ | 17,916 | | Operations held for investment: | | | | | | Depreciation and amortization | | 36,746 | | 36,387 | | Interest expense | | 17,507 | | 14,326 | | Income tax provision (benefit), net | | 6,670 | | (3,112) | | Impairment loss - hotel properties | | 113,064 | | — | | EBITDAre | | 11,468 | | 65,517 | | Operations held for investment: | | | | | | Amortization of deferred stock compensation | | 2,207 | | 2,122 | | Amortization of right-of-use assets and liabilities | | (261) | | (19) | | Finance lease obligation interest - cash ground rent | | (351) | | (589) | | Prior year property tax adjustments, net | | (81) | | 189 | | Impairment loss - abandoned development costs | | 2,302 | | — | | Noncontrolling interest: | | | | | | Loss (income) from consolidated joint venture attributable to noncontrolling interest | | 458 | | (1,599) | | Depreciation and amortization | | (804) | | (639) | | Interest expense | | (420) | | (560) | | Amortization of right-of-use asset and liability | | 72 | | 72 | | Impairment loss - abandoned development costs | | (449) | | — | | Adjustments to EBITDAre, net | | 2,673 | | (1,023) | | Adjusted EBITDAre, excluding noncontrolling interest | $ | 14,141 | $ | 64,494 |

| CORPORATE FINANCIAL INFORMATION | Page 12 |

| --- | --- | | Supplemental Financial Information May 8, 2020 | | --- |

Reconciliation of Net (Loss) Income to FFO and Adjusted FFO Attributable to Common Stockholders Q1 2020/2019

|  | Three Months Ended March 31, |  |  |  |

| --- | --- | --- | --- | --- | | (In thousands, except per share data) | | 2020 | | 2019 | | Net (loss) income | $ | (162,519) | $ | 17,916 | | Preferred stock dividends | | (3,207) | | (3,207) | | Operations held for investment: | | | | | | Real estate depreciation and amortization | | 36,122 | | 35,770 | | Impairment loss - hotel properties | | 113,064 | | — | | Noncontrolling interest: | | | | | | Loss (income) from consolidated joint venture attributable to noncontrolling interest | | 458 | | (1,599) | | Real estate depreciation and amortization | | (804) | | (639) | | FFO attributable to common stockholders | | (16,886) | | 48,241 | | Operations held for investment: | | | | | | Real estate amortization of right-of-use assets and liabilities | | 146 | | 151 | | Noncash interest on derivatives and finance lease obligations, net | | 6,080 | | 2,119 | | Prior year property tax adjustments, net | | (81) | | 189 | | Impairment loss - abandoned development costs | | 2,302 | | — | | Noncash income tax provision (benefit), net | | 7,415 | | (3,284) | | Noncontrolling interest: | | | | | | Real estate amortization of right-of-use asset and liability | | 72 | | 72 | | Impairment loss - abandoned development costs | | (449) | | — | | Adjustments to FFO attributable to common stockholders, net | | 15,485 | | (753) | | Adjusted FFO attributable to common stockholders | $ | (1,401) | $ | 47,488 | | FFO attributable to common stockholders per diluted share | $ | (0.08) | $ | 0.21 | | Adjusted FFO attributable to common stockholders per diluted share | $ | (0.01) | $ | 0.21 | | Basic weighted average shares outstanding | | 221,036 | | 227,219 | | Shares associated with unvested restricted stock awards | | — | | 260 | | Diluted weighted average shares outstanding | | 221,036 | | 227,479 |

| CORPORATE FINANCIAL INFORMATION | Page 13 |

| --- | --- | | Supplemental Financial Information May 8, 2020 | | --- |

CAPITALIZATION

| CAPITALIZATION | Page 14 |

| --- | --- | | Supplemental Financial Information May 8, 2020 | | --- | Comparative Capitalization Q1 2020 – Q1 2019

|  | March 31, |  |  | December 31, |  |  | September 30, |  |  | June 30, |  |  | March 31, |  |  |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | (In thousands, except per share data) | 2020 | | | 2019 | | | 2019 | | | 2019 | | | 2019 | | | | Common Share Price & Dividends | | | | | | | | | | | | | | | | | At the end of the quarter | $ | 8.71 | | $ | 13.92 | | $ | 13.74 | | $ | 13.71 | | $ | 14.40 | | | High during quarter ended | $ | 13.81 | | $ | 14.41 | | $ | 13.92 | | $ | 14.94 | | $ | 15.44 | | | Low during quarter ended | $ | 6.99 | | $ | 13.25 | | $ | 12.85 | | $ | 13.19 | | $ | 12.86 | | | Common dividends per share | $ | 0.05 | | $ | 0.59 | | $ | 0.05 | | $ | 0.05 | | $ | 0.05 | | | Common Shares & Units | | | | | | | | | | | | | | | | | Common shares outstanding | | 215,541 | | | 224,855 | | | 224,862 | | | 228,207 | | | 228,587 | | | Units outstanding | | — | | | — | | | — | | | — | | | — | | | Total common shares and units outstanding | | 215,541 | | | 224,855 | | | 224,862 | | | 228,207 | | | 228,587 | | | Capitalization | | | | | | | | | | | | | | | | | Market value of common equity | $ | 1,877,363 | | $ | 3,129,986 | | $ | 3,089,604 | | $ | 3,128,716 | | $ | 3,291,659 | | | 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 | | 1,272,965 | | | 974,863 | | | 977,058 | | | 979,040 | | | 980,996 | | | Consolidated total capitalization | | 3,340,328 | | | 4,294,849 | | | 4,256,662 | | | 4,297,756 | | | 4,462,655 | | | Noncontrolling interest in consolidated debt | | (55,000) | | | (55,000) | | | (55,000) | | | (55,000) | | | (55,000) | | | Pro rata total capitalization | $ | 3,285,328 | | $ | 4,239,849 | | $ | 4,201,662 | | $ | 4,242,756 | | $ | 4,407,655 | | | Consolidated debt to consolidated total capitalization | | 38.1 | % | | 22.7 | % | | 23.0 | % | | 22.8 | % | | 22.0 | % | | Pro rata debt to pro rata total capitalization | | 37.1 | % | | 21.7 | % | | 21.9 | % | | 21.8 | % | | 21.0 | % | | Consolidated debt and preferred equity to consolidated total capitalization | | 43.8 | % | | 27.1 | % | | 27.4 | % | | 27.2 | % | | 26.2 | % | | Pro rata debt and preferred equity to pro rata total capitalization | | 42.9 | % | | 26.2 | % | | 26.5 | % | | 26.3 | % | | 25.3 | % |

| CAPITALIZATION | Page 15 |

| --- | --- | | Supplemental Financial Information May 8, 2020 | | --- | Consolidated Debt Summary Schedule

| \(In thousands\) |  | Interest Rate / | Maturity |  | March 31, 2020 |  |  | Balance At |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | | Debt | Collateral | Spread | Date | | Balance | | | Maturity | | Fixed Rate Debt | | | | | | | | | | Secured Mortgage Debt | Hilton Times Square | 4.97% | 11/01/2020 | $ | 77,339 | | $ | 76,145 | | Secured Mortgage Debt | Renaissance Washington DC | 5.95% | 05/01/2021 | | 110,312 | | | 106,855 | | Term Loan Facility | Unsecured | 2.94% | 09/03/2022 | | 85,000 | | | 85,000 | | Term Loan Facility | Unsecured | 3.20% | 01/31/2023 | | 100,000 | | | 100,000 | | Secured Mortgage Debt | JW Marriott New Orleans | 4.15% | 12/11/2024 | | 81,430 | | | 72,071 | | Secured Mortgage Debt | Embassy Suites La Jolla | 4.12% | 01/06/2025 | | 58,884 | | | 51,987 | | Series A Senior Notes | Unsecured | 4.69% | 01/10/2026 | | 120,000 | | | 120,000 | | Series B Senior Notes | Unsecured | 4.79% | 01/10/2028 | | 120,000 | | | 120,000 | | Total Fixed Rate Debt | | | | | 752,965 | | | 732,058 | | Secured Mortgage Debt | Hilton San Diego Bayfront | L + 1.05% | 12/09/2023 (1) | | 220,000 | | | 220,000 | | Credit Facility | Unsecured | L + 1.40% | 04/14/2023 | | 300,000 | | | 300,000 | | Total Variable Rate Debt | | | | | 520,000 | | | 520,000 | | TOTAL CONSOLIDATED DEBT | | | | $ | 1,272,965 | | $ | 1,252,058 | | 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 | | | | | 59.2 | % | | | | % Floating Rate Debt | | | | | 40.8 | % | | | | Average Interest Rate (2) | | | | | 3.63 | % | | | | Weighted Average Maturity of Debt (1) | | | | | 3.7 years | | | |

| \(1\) | 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.  By extending this loan, the Company's weighted average maturity of debt increases from 3.2 years to 3.7 years. |

---	---		(2)	Average Interest Rate on the variable-rate debt obligations is calculated based on the variable rates at March 31, 2020, and includes the effect of the Company's interest rate derivative agreement.

| CAPITALIZATION | Page 16 |

| --- | --- | | Supplemental Financial Information May 8, 2020 | | --- | Consolidated Amortization and Debt Maturity Schedule

As of March 31, 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 March 31, 2020 consolidated total capitalization as presented on page 15. | | --- | --- |

| CAPITALIZATION | Page 17 |

| --- | --- | | Supplemental Financial Information May 8, 2020 | | --- |

PROPERTY-LEVEL DATA

| PROPERTY-LEVEL DATA | Page 18 |

| --- | --- | | Supplemental Financial Information May 8, 2020 | | --- | Hotel Information as of May 8, 2020

| Hotel |  | Location | Brand | Number of<br>Rooms | % of Total<br>Rooms | Open / Date Operations Temporarily Suspended \(1\) | Interest | Leasehold<br>Maturity \(2\) | Year Acquired |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 1 | Hilton San Diego Bayfront (3) | California | Hilton | 1,190 | 11.22% | March 23, 2020 | Leasehold | 2071 | 2011 | | 2 | Boston Park Plaza | Massachusetts | Independent | 1,060 | 9.99% | Open | Fee Simple | | 2013 | | 3 | Hyatt Regency San Francisco | California | Hyatt | 821 | 7.74% | March 22, 2020 | Fee Simple | | 2013 | | 4 | Renaissance Washington DC | Washington DC | Marriott | 807 | 7.61% | March 26, 2020 | Fee Simple | | 2005 | | 5 | Renaissance Orlando at SeaWorld® | Florida | Marriott | 781 | 7.36% | March 20, 2020 | Fee Simple | | 2005 | | 6 | Renaissance Harborplace | Maryland | Marriott | 622 | 5.86% | Open | Fee Simple | | 2005 | | 7 | Wailea Beach Resort | Hawaii | Marriott | 547 | 5.16% | March 25, 2020 | Fee Simple | | 2014 | | 8 | Renaissance Los Angeles Airport | California | Marriott | 502 | 4.73% | Open | Fee Simple | | 2007 | | 9 | JW Marriott New Orleans (4) | Louisiana | Marriott | 501 | 4.72% | March 28, 2020 | Fee Simple | | 2011 | | 10 | Hilton Times Square | New York | Hilton | 478 | 4.51% | Open | Leasehold | 2091 | 2006 | | 11 | Hyatt Centric Chicago Magnificent Mile | Illinois | Hyatt | 419 | 3.95% | April 6, 2020 | Leasehold | 2097 | 2012 | | 12 | Marriott Boston Long Wharf | Massachusetts | Marriott | 415 | 3.91% | March 12, 2020 | Fee Simple | | 2007 | | 13 | Renaissance Long Beach | California | Marriott | 374 | 3.52% | Open | Fee Simple | | 2005 | | 14 | Embassy Suites Chicago | Illinois | Hilton | 368 | 3.47% | April 1, 2020 | Fee Simple | | 2002 | | 15 | Hilton Garden Inn Chicago Downtown/Magnificent Mile | Illinois | Hilton | 361 | 3.40% | March 27, 2020 | Fee Simple | | 2012 | | 16 | Renaissance Westchester | New York | Marriott | 348 | 3.28% | April 4, 2020 | Fee Simple | | 2010 | | 17 | Embassy Suites La Jolla | California | Hilton | 340 | 3.20% | Open | Fee Simple | | 2006 | | 18 | Hilton New Orleans St. Charles | Louisiana | Hilton | 252 | 2.38% | March 28, 2020 | Fee Simple | | 2013 | | 19 | Marriott Portland | Oregon | Marriott | 249 | 2.35% | March 27, 2020 | Fee Simple | | 2000 | | 20 | Oceans Edge Resort & Marina | Florida | Independent | 175 | 1.65% | March 22, 2020 | Fee Simple | | 2017 | | | 20 Hotel Portfolio | | | 10,610 | 100% | | | | |

| \(1\) | As of May 8, 2020, the Company has termporarily suspended operations at 14 of its hotels due to the COVID-19 pandemic. Operations for the remaining 6 hotels have been significantly reduced. |

| --- | --- | | (2) | Assumes the full exercise of all lease extensions. | | --- | --- | | (3) | The Company owns 75% of the joint venture that owns the Hilton San Diego Bayfront. | | --- | --- | | (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. | | --- | --- |

| PROPERTY-LEVEL DATA | Page 19 |

| --- | --- | | Supplemental Financial Information May 8, 2020 | | --- |

PROPERTY-LEVEL OPERATING STATISTICS

| PROPERTY-LEVEL OPERATING STATISTICS | Page 20 |

| --- | --- | | Supplemental Financial Information May 8, 2020 | | --- | Property-Level Operating Statistics

January 2020/2019

|  | Hotels sorted by number of rooms | ADR |  |  |  |  | Occupancy |  |  | RevPAR |  |  |  |  |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | January | | | | | January | | | January | | | | | | | | 2020 | | 2019 | | Variance | 2020 | 2019 | Variance | 2020 | | 2019 | | Variance | | 1 | Hilton San Diego Bayfront (1) | $ | 221.94 | $ | 231.72 | -4.2% | 77.2% | 68.2% | 13.2% | $ | 171.34 | $ | 158.03 | 8.4% | | 2 | Boston Park Plaza | $ | 138.41 | $ | 142.16 | -2.6% | 66.8% | 75.6% | -11.6% | $ | 92.46 | $ | 107.47 | -14.0% | | 3 | Hyatt Regency San Francisco | $ | 351.67 | $ | 396.40 | -11.3% | 77.6% | 77.0% | 0.8% | $ | 272.90 | $ | 305.23 | -10.6% | | 4 | Renaissance Washington DC | $ | 180.18 | $ | 185.07 | -2.6% | 62.6% | 61.0% | 2.6% | $ | 112.79 | $ | 112.89 | -0.1% | | 5 | Renaissance Orlando at SeaWorld ® | $ | 196.55 | $ | 194.14 | 1.2% | 68.8% | 78.9% | -12.8% | $ | 135.23 | $ | 153.18 | -11.7% | | 6 | Renaissance Harborplace (1) | $ | 145.65 | $ | 143.86 | 1.2% | 53.7% | 37.0% | 45.1% | $ | 78.21 | $ | 53.23 | 46.9% | | 7 | Wailea Beach Resort | $ | 556.25 | $ | 491.86 | 13.1% | 88.0% | 91.0% | -3.3% | $ | 489.50 | $ | 447.59 | 9.4% | | 8 | Renaissance Los Angeles Airport | $ | 140.45 | $ | 143.32 | -2.0% | 85.2% | 86.0% | -0.9% | $ | 119.66 | $ | 123.26 | -2.9% | | 9 | JW Marriott New Orleans | $ | 219.30 | $ | 196.26 | 11.7% | 79.8% | 84.9% | -6.0% | $ | 175.00 | $ | 166.62 | 5.0% | | 10 | Hilton Times Square | $ | 173.06 | $ | 189.32 | -8.6% | 95.2% | 98.6% | -3.4% | $ | 164.75 | $ | 186.67 | -11.7% | | 11 | Hyatt Centric Chicago Magnificent Mile | $ | 117.17 | $ | 106.52 | 10.0% | 62.0% | 55.7% | 11.3% | $ | 72.65 | $ | 59.33 | 22.5% | | 12 | Marriott Boston Long Wharf | $ | 216.35 | $ | 209.78 | 3.1% | 74.7% | 68.5% | 9.1% | $ | 161.61 | $ | 143.70 | 12.5% | | 13 | Renaissance Long Beach | $ | 182.47 | $ | 183.97 | -0.8% | 80.6% | 71.7% | 12.4% | $ | 147.07 | $ | 131.91 | 11.5% | | 14 | Embassy Suites Chicago | $ | 111.74 | $ | 101.67 | 9.9% | 73.7% | 66.0% | 11.7% | $ | 82.35 | $ | 67.10 | 22.7% | | 15 | Hilton Garden Inn Chicago Downtown/Magnificent Mile | $ | 96.94 | $ | 81.32 | 19.2% | 53.7% | 54.6% | -1.6% | $ | 52.06 | $ | 44.40 | 17.3% | | 16 | Renaissance Westchester | $ | 149.50 | $ | 145.29 | 2.9% | 64.9% | 65.8% | -1.4% | $ | 97.03 | $ | 95.60 | 1.5% | | 17 | Embassy Suites La Jolla | $ | 188.27 | $ | 189.14 | -0.5% | 83.1% | 85.2% | -2.5% | $ | 156.45 | $ | 161.15 | -2.9% | | 18 | Hilton New Orleans St. Charles | $ | 171.82 | $ | 161.66 | 6.3% | 79.5% | 74.2% | 7.1% | $ | 136.60 | $ | 119.95 | 13.9% | | 19 | Marriott Portland (1) | $ | 143.32 | $ | 153.75 | -6.8% | 47.0% | 72.4% | -35.1% | $ | 67.36 | $ | 111.32 | -39.5% | | 20 | Oceans Edge Resort & Marina | $ | 304.52 | $ | 252.45 | 20.6% | 89.7% | 94.0% | -4.6% | $ | 273.15 | $ | 237.30 | 15.1% | | | 20 Hotel Portfolio (2) | $ | 214.02 | $ | 212.79 | 0.6% | 72.8% | 72.4% | 0.6% | $ | 155.81 | $ | 154.06 | 1.1% | | (1) | Operating statistics for January 2020 are impacted by a room renovation at the Marriott Portland. Operating statistics for January 2019 are impacted by room renovations at the Hilton San Diego Bayfront and the Renaissance Harborplace. | | --- | --- | | (2) | 20 Hotel Portfolio includes all hotels owned by the Company as of March 31, 2020. | | --- | --- |

| PROPERTY-LEVEL OPERATING STATISTICS | Page 21 |

| --- | --- | | Supplemental Financial Information May 8, 2020 | | --- | Property-Level Operating Statistics

February 2020/2019

|  | Hotels sorted by number of rooms | ADR |  |  |  |  | Occupancy |  |  | RevPAR |  |  |  |  |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | February | | | | | February | | | February | | | | | | | | 2020 | | 2019 | | Variance | 2020 | 2019 | Variance | 2020 | | 2019 | | Variance | | 1 | Hilton San Diego Bayfront (1) | $ | 261.15 | $ | 279.63 | -6.6% | 83.9% | 79.8% | 5.1% | $ | 219.10 | $ | 223.14 | -1.8% | | 2 | Boston Park Plaza | $ | 145.74 | $ | 136.62 | 6.7% | 69.5% | 75.7% | -8.2% | $ | 101.29 | $ | 103.42 | -2.1% | | 3 | Hyatt Regency San Francisco | $ | 301.04 | $ | 340.71 | -11.6% | 82.6% | 87.2% | -5.3% | $ | 248.66 | $ | 297.10 | -16.3% | | 4 | Renaissance Washington DC | $ | 232.97 | $ | 229.44 | 1.5% | 75.8% | 71.7% | 5.7% | $ | 176.59 | $ | 164.51 | 7.3% | | 5 | Renaissance Orlando at SeaWorld ® | $ | 192.31 | $ | 205.95 | -6.6% | 87.7% | 85.2% | 2.9% | $ | 168.66 | $ | 175.47 | -3.9% | | 6 | Renaissance Harborplace (1) | $ | 136.74 | $ | 145.31 | -5.9% | 56.1% | 43.3% | 29.6% | $ | 76.71 | $ | 62.92 | 21.9% | | 7 | Wailea Beach Resort | $ | 580.48 | $ | 518.96 | 11.9% | 92.1% | 93.3% | -1.3% | $ | 534.62 | $ | 484.19 | 10.4% | | 8 | Renaissance Los Angeles Airport | $ | 145.24 | $ | 152.51 | -4.8% | 93.3% | 89.5% | 4.2% | $ | 135.51 | $ | 136.50 | -0.7% | | 9 | JW Marriott New Orleans | $ | 240.41 | $ | 234.70 | 2.4% | 82.2% | 82.5% | -0.4% | $ | 197.62 | $ | 193.63 | 2.1% | | 10 | Hilton Times Square | $ | 165.20 | $ | 189.04 | -12.6% | 97.0% | 99.2% | -2.2% | $ | 160.24 | $ | 187.53 | -14.5% | | 11 | Hyatt Centric Chicago Magnificent Mile | $ | 132.27 | $ | 118.87 | 11.3% | 61.1% | 71.1% | -14.1% | $ | 80.82 | $ | 84.52 | -4.4% | | 12 | Marriott Boston Long Wharf | $ | 229.82 | $ | 213.35 | 7.7% | 84.9% | 81.1% | 4.7% | $ | 195.12 | $ | 173.03 | 12.8% | | 13 | Renaissance Long Beach | $ | 191.70 | $ | 198.49 | -3.4% | 84.9% | 86.5% | -1.8% | $ | 162.75 | $ | 171.69 | -5.2% | | 14 | Embassy Suites Chicago | $ | 123.88 | $ | 116.27 | 6.5% | 73.9% | 81.6% | -9.4% | $ | 91.55 | $ | 94.88 | -3.5% | | 15 | Hilton Garden Inn Chicago Downtown/Magnificent Mile | $ | 95.00 | $ | 92.30 | 2.9% | 65.9% | 66.2% | -0.5% | $ | 62.61 | $ | 61.10 | 2.5% | | 16 | Renaissance Westchester | $ | 145.99 | $ | 151.93 | -3.9% | 66.0% | 66.0% | 0.0% | $ | 96.35 | $ | 100.27 | -3.9% | | 17 | Embassy Suites La Jolla | $ | 197.95 | $ | 199.90 | -1.0% | 85.8% | 85.8% | 0.0% | $ | 169.84 | $ | 171.51 | -1.0% | | 18 | Hilton New Orleans St. Charles | $ | 195.75 | $ | 200.35 | -2.3% | 84.3% | 74.0% | 13.9% | $ | 165.02 | $ | 148.26 | 11.3% | | 19 | Marriott Portland (1) | $ | 143.86 | $ | 159.01 | -9.5% | 48.8% | 85.5% | -42.9% | $ | 70.20 | $ | 135.95 | -48.4% | | 20 | Oceans Edge Resort & Marina | $ | 362.28 | $ | 341.63 | 6.0% | 91.6% | 95.8% | -4.4% | $ | 331.85 | $ | 327.28 | 1.4% | | | 20 Hotel Portfolio (2) | $ | 223.83 | $ | 225.39 | -0.7% | 78.8% | 79.3% | -0.6% | $ | 176.38 | $ | 178.73 | -1.3% | | (1) | Operating statistics for February 2020 are impacted by a room renovation at the Marriott Portland. Operating statistics for February 2019 are impacted by room renovations at the Hilton San Diego Bayfront and the Renaissance Harborplace. | | --- | --- | | (2) | 20 Hotel Portfolio includes all hotels owned by the Company as of March 31, 2020. | | --- | --- |

| PROPERTY-LEVEL OPERATING STATISTICS | Page 22 |

| --- | --- | | Supplemental Financial Information May 8, 2020 | | --- | Property-Level Operating Statistics

March 2020/2019

|  | Hotels sorted by number of rooms | ADR |  |  |  |  | Occupancy |  |  | RevPAR |  |  |  |  |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | March | | | | | March | | | March | | | | | | | | 2020 | | 2019 | | Variance | 2020 | 2019 | Variance | 2020 | | 2019 | | Variance | | 1 | Boston Park Plaza | $ | 171.07 | $ | 180.55 | -5.3% | 32.1% | 90.5% | -64.5% | $ | 54.91 | $ | 163.40 | -66.4% | | 2 | Renaissance Harborplace (1) | $ | 152.42 | $ | 177.80 | -14.3% | 23.8% | 47.1% | -49.5% | $ | 36.28 | $ | 83.74 | -56.7% | | 3 | Renaissance Los Angeles Airport | $ | 136.46 | $ | 148.63 | -8.2% | 45.4% | 88.8% | -48.9% | $ | 61.95 | $ | 131.98 | -53.1% | | 4 | Hilton Times Square | $ | 155.32 | $ | 250.44 | -38.0% | 37.9% | 99.2% | -61.8% | $ | 58.87 | $ | 248.44 | -76.3% | | 5 | Hyatt Centric Chicago Magnificent Mile | $ | 140.23 | $ | 145.08 | -3.3% | 22.3% | 80.2% | -72.2% | $ | 31.27 | $ | 116.35 | -73.1% | | 6 | Renaissance Long Beach | $ | 192.85 | $ | 194.86 | -1.0% | 35.3% | 90.2% | -60.9% | $ | 68.08 | $ | 175.76 | -61.3% | | 7 | Embassy Suites Chicago | $ | 139.94 | $ | 150.89 | -7.3% | 32.8% | 94.3% | -65.2% | $ | 45.90 | $ | 142.29 | -67.7% | | 8 | Renaissance Westchester | $ | 141.20 | $ | 148.59 | -5.0% | 28.2% | 68.4% | -58.8% | $ | 39.82 | $ | 101.64 | -60.8% | | 9 | Embassy Suites La Jolla | $ | 181.72 | $ | 197.38 | -7.9% | 50.2% | 91.9% | -45.4% | $ | 91.22 | $ | 181.39 | -49.7% | | | 9 Hotel Portfolio (2) | $ | 158.91 | $ | 180.12 | -11.8% | 33.5% | 83.0% | -59.6% | $ | 53.23 | $ | 149.50 | -64.4% | | 10 | Hilton San Diego Bayfront (1) | $ | 248.59 | $ | 258.62 | -3.9% | 18.9% | 78.5% | -75.9% | $ | 46.98 | $ | 203.02 | -76.9% | | 11 | Hyatt Regency San Francisco | $ | 277.68 | $ | 327.27 | -15.2% | 21.6% | 88.7% | -75.6% | $ | 59.98 | $ | 290.29 | -79.3% | | 12 | Renaissance Washington DC | $ | 286.36 | $ | 292.95 | -2.2% | 32.4% | 87.7% | -63.1% | $ | 92.78 | $ | 256.92 | -63.9% | | 13 | Renaissance Orlando at SeaWorld ® | $ | 189.54 | $ | 192.53 | -1.6% | 20.6% | 87.4% | -76.4% | $ | 39.05 | $ | 168.27 | -76.8% | | 14 | Wailea Beach Resort | $ | 488.43 | $ | 480.37 | 1.7% | 49.1% | 94.0% | -47.8% | $ | 239.82 | $ | 451.55 | -46.9% | | 15 | JW Marriott New Orleans | $ | 226.47 | $ | 248.88 | -9.0% | 32.5% | 91.3% | -64.4% | $ | 73.60 | $ | 227.23 | -67.6% | | 16 | Marriott Boston Long Wharf | $ | 261.53 | $ | 265.41 | -1.5% | 23.4% | 86.1% | -72.8% | $ | 61.20 | $ | 228.52 | -73.2% | | 17 | Hilton Garden Inn Chicago Downtown/Magnificent Mile | $ | 116.51 | $ | 122.00 | -4.5% | 21.9% | 82.7% | -73.5% | $ | 25.52 | $ | 100.89 | -74.7% | | 18 | Hilton New Orleans St. Charles | $ | 181.61 | $ | 204.11 | -11.0% | 31.8% | 90.2% | -64.7% | $ | 57.75 | $ | 184.11 | -68.6% | | 19 | Marriott Portland (1) | $ | 133.96 | $ | 172.77 | -22.5% | 22.2% | 79.6% | -72.1% | $ | 29.74 | $ | 137.52 | -78.4% | | 20 | Oceans Edge Resort & Marina | $ | 320.63 | $ | 347.36 | -7.7% | 55.2% | 95.2% | -42.0% | $ | 176.99 | $ | 330.69 | -46.5% | | | 20 Hotel Portfolio (3) | $ | 222.39 | $ | 235.39 | -5.5% | 29.9% | 85.0% | -64.8% | $ | 66.49 | $ | 200.08 | -66.8% |

| \(1\) | Operating statistics for March 2020 are impacted by a room renovation at the Marriott Portland. Operating statistics for March 2019 are impacted by room renovations at the Hilton San Diego Bayfront and the Renaissance Harborplace. |

| --- | --- | | (2) | 9 Hotel Portfolio includes all hotels that remained open as of March 31, 2020. | | --- | --- | | (3) | 20 Hotel Portfolio includes all hotels owned by the Company as of March 31, 2020. | | --- | --- |

| PROPERTY-LEVEL OPERATING STATISTICS | Page 23 |

| --- | --- | | Supplemental Financial Information May 8, 2020 | | --- |

PROPERTY-LEVEL ADJUSTED EBITDAre &

ADJUSTED EBITDAre MARGINS

| PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS | Page 24 |

| --- | --- | | Supplemental Financial Information May 8, 2020 | | --- | Property-Level Adjusted EBITDAre and Adjusted EBITDAre Margins January 2020

|  | Hotels sorted by number of rooms | For the Month of January 2020 |  |  |  |  |  |  |  |  |  |  |  |  |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | (In thousands) | | | | | Plus: | | Plus: | | Plus: | | Equals: | | Hotel | | | | Total | | Net Income / | | Other | | | | | | Hotel | | Adjusted EBITDAre | | | | Revenues | | (Loss) | | Adjustments (1) | | Depreciation | | Interest Expense | | Adjusted EBITDAre | | Margins | | 1 | Hilton San Diego Bayfront (2) | $ | 11,202 | $ | 462 | $ | (97) | $ | 1,072 | $ | 616 | $ | 2,053 | 18.3% | | 2 | Boston Park Plaza | | 4,444 | | (2,132) | | — | | 1,511 | | — | | (621) | -14.0% | | 3 | Hyatt Regency San Francisco | | 9,327 | | 1,089 | | 90 | | 1,074 | | — | | 2,253 | 24.2% | | 4 | Renaissance Washington DC | | 4,404 | | (1,423) | | — | | 699 | | 557 | | (167) | -3.8% | | 5 | Renaissance Orlando at SeaWorld ® | | 7,584 | | 1,555 | | — | | 868 | | — | | 2,423 | 31.9% | | 6 | Renaissance Harborplace | | 2,161 | | (641) | | — | | 471 | | — | | (170) | -7.9% | | 7 | Wailea Beach Resort | | 11,333 | | 3,191 | | — | | 1,320 | | — | | 4,511 | 39.8% | | 8 | Renaissance Los Angeles Airport | | 2,567 | | 49 | | — | | 353 | | — | | 402 | 15.7% | | 9 | JW Marriott New Orleans | | 3,804 | | 563 | | 1 | | 558 | | 297 | | 1,419 | 37.3% | | 10 | Hilton Times Square | | 3,012 | | (1,815) | | 19 | | 845 | | 405 | | (546) | -18.1% | | 11 | Hyatt Centric Chicago Magnificent Mile | | 1,469 | | (1,076) | | (117) | | 482 | | 117 | | (594) | -40.4% | | 12 | Marriott Boston Long Wharf | | 3,243 | | (805) | | — | | 916 | | — | | 111 | 3.4% | | 13 | Renaissance Long Beach | | 2,425 | | 296 | | — | | 330 | | — | | 626 | 25.8% | | 14 | Embassy Suites Chicago | | 1,091 | | (551) | | — | | 247 | | — | | (304) | -27.9% | | 15 | Hilton Garden Inn Chicago Downtown/Magnificent Mile | | 706 | | (576) | | 3 | | 224 | | — | | (349) | -49.4% | | 16 | Renaissance Westchester | | 1,707 | | (281) | | — | | 293 | | — | | 12 | 0.7% | | 17 | Embassy Suites La Jolla | | 1,918 | | 75 | | — | | 353 | | 213 | | 641 | 33.4% | | 18 | Hilton New Orleans St. Charles | | 1,204 | | 117 | | — | | 218 | | — | | 335 | 27.8% | | 19 | Marriott Portland (3) | | 589 | | (211) | | — | | 135 | | — | | (76) | -12.9% | | 20 | Oceans Edge Resort & Marina | | 2,135 | | 535 | | — | | 273 | | — | | 808 | 37.8% | | | 20 Hotel Portfolio (4) | $ | 76,325 | $ | (1,579) | $ | (101) | $ | 12,242 | $ | 2,205 | $ | 12,767 | 16.7% |

*Footnotes on page 27

| PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS | Page 25 |

| --- | --- | | Supplemental Financial Information May 8, 2020 | | --- | Property-Level Adjusted EBITDAre and Adjusted EBITDAre Margins January 2019

|  | Hotels sorted by number of rooms | For the Month of January 2019 |  |  |  |  |  |  |  |  |  |  |  |  |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | (In thousands) | | | | | Plus: | | Plus: | | Plus: | | Equals: | | Hotel | | | | Total | | Net Income / | | Other | | | | | | Hotel | | Adjusted EBITDAre | | | | Revenues | | (Loss) | | Adjustments (1) | | Depreciation | | Interest Expense | | Adjusted EBITDAre | | Margins | | 1 | Hilton San Diego Bayfront (2) (3) | $ | 10,612 | $ | 470 | $ | (97) | $ | 856 | $ | 767 | $ | 1,996 | 18.8% | | 2 | Boston Park Plaza | | 6,479 | | (1,079) | | — | | 1,481 | | — | | 402 | 6.2% | | 3 | Hyatt Regency San Francisco | | 10,468 | | 1,767 | | 118 | | 1,042 | | — | | 2,927 | 28.0% | | 4 | Renaissance Washington DC | | 4,640 | | (1,079) | | — | | 819 | | 572 | | 312 | 6.7% | | 5 | Renaissance Orlando at SeaWorld ® | | 8,643 | | 2,431 | | — | | 841 | | — | | 3,272 | 37.9% | | 6 | Renaissance Harborplace (3) | | 1,816 | | (717) | | — | | 499 | | — | | (218) | -12.0% | | 7 | Wailea Beach Resort | | 10,842 | | 2,949 | | — | | 1,291 | | — | | 4,240 | 39.1% | | 8 | Renaissance Los Angeles Airport | | 2,611 | | 212 | | — | | 348 | | — | | 560 | 21.4% | | 9 | JW Marriott New Orleans | | 3,609 | | 642 | | 1 | | 532 | | 304 | | 1,479 | 41.0% | | 10 | Hilton Times Square | | 3,033 | | (1,835) | | 21 | | 849 | | 407 | | (558) | -18.4% | | 11 | Hyatt Centric Chicago Magnificent Mile | | 1,186 | | (1,237) | | (117) | | 480 | | 117 | | (757) | -63.8% | | 12 | Marriott Boston Long Wharf | | 3,083 | | (680) | | — | | 899 | | — | | 219 | 7.1% | | 13 | Renaissance Long Beach | | 2,105 | | 118 | | — | | 315 | | — | | 433 | 20.6% | | 14 | Embassy Suites Chicago | | 972 | | (577) | | — | | 246 | | — | | (331) | -34.1% | | 15 | Hilton Garden Inn Chicago Downtown/Magnificent Mile | | 592 | | (634) | | 3 | | 217 | | — | | (414) | -69.9% | | 16 | Renaissance Westchester | | 1,480 | | (399) | | — | | 295 | | — | | (104) | -7.0% | | 17 | Embassy Suites La Jolla | | 1,949 | | 100 | | — | | 345 | | 218 | | 663 | 34.0% | | 18 | Hilton New Orleans St. Charles | | 1,058 | | 16 | | — | | 207 | | — | | 223 | 21.1% | | 19 | Marriott Portland | | 1,015 | | 118 | | — | | 132 | | — | | 250 | 24.6% | | 20 | Oceans Edge Resort & Marina | | 1,963 | | 376 | | — | | 258 | | — | | 634 | 32.3% | | | 20 Hotel Portfolio (4) | | 78,156 | | 962 | | (71) | | 11,952 | | 2,385 | | 15,228 | 19.5% | | | Add: Sold Hotel (5) | | | | | | | | | | | | | | | | Courtyard by Marriott Los Angeles | | 940 | | 107 | | (80) | | 84 | | 98 | | 209 | 22.2% | | | 21 Hotel Portfolio (6) | $ | 79,096 | $ | 1,069 | $ | (151) | $ | 12,036 | $ | 2,483 | $ | 15,437 | 19.5% | *Footnotes on page 27 | PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS | Page 26 | | --- | --- | | Supplemental Financial Information May 8, 2020 | | --- | Property-Level Adjusted EBITDAre and Adjusted EBITDAre Margins

January 2020/2019 Footnotes

| \(1\) | Other Adjustments for January 2020 include: a total of $\(0.1\) million in amortization of 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; $\(0.1\) million in finance lease obligation interest - cash ground rent at the Hyatt Centric Chicago Magnificent Mile; and $0.1 million in city taxes assessed on commercial rents at the Hyatt Regency San Francisco. Other Adjustments for January 2019 include: a total of $\(0.1\) million in amortization of 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; a total of $\(0.2\) million in finance lease obligation interest - cash ground rent at the Courtyard by Marriott Los Angeles and the Hyatt Centric Chicago Magnificent Mile; and $0.1 million in city taxes assessed on commercial rents at the Hyatt Regency San Francisco. |

| --- | --- | | (2) | Includes 100% of the operating results for the Hilton San Diego Bayfront. | | --- | --- | | (3) | Hotel Adjusted EBITDAre for January 2020 is impacted by a room renovation at the Marriott Portland. Hotel Adjusted EBITDAre for January 2019 is impacted by room renovations at the Hilton San Diego Bayfront and the Renaissance Harborplace. | | --- | --- | | (4) | 20 Hotel Portfolio includes all hotels owned by the Company as of January 31, 2020. | | --- | --- | | (5) | Sold Hotel includes results for the Courtyard by Marriott Los Angeles, sold in October 2019. | | --- | --- | | (6) | 21 Hotel Portfolio includes all hotels owned by the Company as of January 31, 2019. | | --- | --- |

| PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS | Page 27 |

| --- | --- | | Supplemental Financial Information May 8, 2020 | | --- | Property-Level Adjusted EBITDAre and Adjusted EBITDAre Margins February 2020

|  | Hotels sorted by number of rooms | For the Month of February 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 | Hilton San Diego Bayfront (3) | $ | 12,928 | $ | 2,511 | $ | (96) | $ | 1,074 | $ | 576 | $ | 4,065 | 31.4% | | 2 | Boston Park Plaza | | 4,204 | | (1,931) | | — | | 1,497 | | — | | (434) | -10.3% | | 3 | Hyatt Regency San Francisco | | 8,946 | | 1,052 | | 90 | | 1,076 | | — | | 2,218 | 24.8% | | 4 | Renaissance Washington DC | | 7,011 | | 971 | | — | | 679 | | 556 | | 2,206 | 31.5% | | 5 | Renaissance Orlando at SeaWorld ® | | 8,805 | | 2,642 | | — | | 868 | | — | | 3,510 | 39.9% | | 6 | Renaissance Harborplace | | 2,342 | | (355) | | — | | 426 | | — | | 71 | 3.0% | | 7 | Wailea Beach Resort | | 11,912 | | 3,864 | | — | | 1,324 | | — | | 5,188 | 43.6% | | 8 | Renaissance Los Angeles Airport | | 2,716 | | 377 | | — | | 353 | | — | | 730 | 26.9% | | 9 | JW Marriott New Orleans | | 3,820 | | 808 | | — | | 532 | | 278 | | 1,618 | 42.4% | | 10 | Hilton Times Square | | 2,790 | | (1,686) | | 19 | | 844 | | 383 | | (440) | -15.8% | | 11 | Hyatt Centric Chicago Magnificent Mile | | 1,273 | | (1,088) | | (117) | | 482 | | 117 | | (606) | -47.6% | | 12 | Marriott Boston Long Wharf | | 3,658 | | (251) | | — | | 910 | | — | | 659 | 18.0% | | 13 | Renaissance Long Beach | | 2,375 | | 396 | | — | | 330 | | — | | 726 | 30.6% | | 14 | Embassy Suites Chicago | | 1,160 | | (346) | | (24) | | 253 | | — | | (117) | -10.1% | | 15 | Hilton Garden Inn Chicago Downtown/Magnificent Mile | | 757 | | (499) | | 2 | | 225 | | — | | (272) | -35.9% | | 16 | Renaissance Westchester | | 1,321 | | (430) | | — | | 292 | | — | | (138) | -10.4% | | 17 | Embassy Suites La Jolla | | 1,933 | | 143 | | — | | 348 | | 200 | | 691 | 35.7% | | 18 | Hilton New Orleans St. Charles | | 1,373 | | 259 | | — | | 211 | | — | | 470 | 34.2% | | 19 | Marriott Portland (4) | | 565 | | (222) | | — | | 135 | | — | | (87) | -15.4% | | 20 | Oceans Edge Resort & Marina | | 2,344 | | 763 | | — | | 275 | | — | | 1,038 | 44.3% | | | 20 Hotel Portfolio (5) | $ | 82,233 | $ | 6,978 | $ | (126) | $ | 12,134 | $ | 2,110 | $ | 21,096 | 25.7% |

*Footnotes on page 30

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

| --- | --- | | Supplemental Financial Information May 8, 2020 | | --- | Property-Level Adjusted EBITDAre and Adjusted EBITDAre Margins February 2019

|  | Hotels sorted by number of rooms | For the Month of February 2019 |  |  |  |  |  |  |  |  |  |  |  |  |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | (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 | Hilton San Diego Bayfront (3) (4) | $ | 12,301 | $ | 2,642 | $ | (96) | $ | 857 | $ | 703 | $ | 4,106 | 33.4% | | 2 | Boston Park Plaza | | 4,113 | | (2,071) | | — | | 1,483 | | — | | (588) | -14.3% | | 3 | Hyatt Regency San Francisco | | 10,054 | | 1,690 | | 118 | | 1,042 | | — | | 2,850 | 28.3% | | 4 | Renaissance Washington DC | | 6,121 | | 234 | | — | | 815 | | 571 | | 1,620 | 26.5% | | 5 | Renaissance Orlando at SeaWorld ® | | 8,918 | | 2,848 | | — | | 856 | | — | | 3,704 | 41.5% | | 6 | Renaissance Harborplace (4) | | 1,890 | | (721) | | — | | 494 | | — | | (227) | -12.0% | | 7 | Wailea Beach Resort | | 10,345 | | 3,178 | | — | | 1,294 | | — | | 4,472 | 43.2% | | 8 | Renaissance Los Angeles Airport | | 2,671 | | 362 | | — | | 347 | | — | | 709 | 26.5% | | 9 | JW Marriott New Orleans | | 3,429 | | 687 | | 1 | | 532 | | 274 | | 1,494 | 43.6% | | 10 | Hilton Times Square | | 2,773 | | (1,664) | | 21 | | 848 | | 374 | | (421) | -15.2% | | 11 | Hyatt Centric Chicago Magnificent Mile | | 1,608 | | (875) | | (117) | | 481 | | 117 | | (394) | -24.5% | | 12 | Marriott Boston Long Wharf | | 2,989 | | (569) | | — | | 897 | | — | | 328 | 11.0% | | 13 | Renaissance Long Beach | | 2,500 | | 575 | | — | | 315 | | — | | 890 | 35.6% | | 14 | Embassy Suites Chicago | | 1,253 | | (275) | | — | | 247 | | — | | (28) | -2.2% | | 15 | Hilton Garden Inn Chicago Downtown/Magnificent Mile | | 781 | | (403) | | 3 | | 218 | | — | | (182) | -23.3% | | 16 | Renaissance Westchester | | 1,394 | | (329) | | — | | 295 | | — | | (34) | -2.4% | | 17 | Embassy Suites La Jolla | | 1,918 | | 249 | | — | | 343 | | 197 | | 789 | 41.1% | | 18 | Hilton New Orleans St. Charles | | 1,178 | | 91 | | — | | 208 | | — | | 299 | 25.4% | | 19 | Marriott Portland | | 1,100 | | 240 | | — | | 132 | | — | | 372 | 33.8% | | 20 | Oceans Edge Resort & Marina | | 2,195 | | 509 | | 189 | | 258 | | — | | 956 | 43.6% | | | 20 Hotel Portfolio (5) | | 79,531 | | 6,398 | | 119 | | 11,962 | | 2,236 | | 20,715 | 26.0% | | | Add: Sold Hotel (6) | | | | | | | | | | | | | | | | Courtyard by Marriott Los Angeles | | 1,011 | | 215 | | (80) | | 85 | | 98 | | 318 | 31.5% | | | 21 Hotel Portfolio (7) | $ | 80,542 | $ | 6,613 | $ | 39 | $ | 12,047 | $ | 2,334 | $ | 21,033 | 26.1% | *Footnotes on page 30 | PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS | Page 29 | | --- | --- | | Supplemental Financial Information May 8, 2020 | | --- | Property-Level Adjusted EBITDAre and Adjusted EBITDAre Margins

February 2020/2019 Footnotes

| \(1\) | Other Adjustments for February 2020 include: a total of $\(0.1\) million in amortization of 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; $\(0.1\) 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; and a $\(24,000\) prior year property tax credit at the Embassy Suites Chicago. Other Adjustments for February 2019 include: a total of $\(0.1\) million in amortization of 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; a total of $\(0.2\) million in finance lease obligation interest - cash ground rent at the Courtyard by Marriott Los Angeles and the Hyatt Centric Chicago Magnificent Mile; $0.1 million in city taxes assessed on commercial rents at the Hyatt Regency San Francisco; and a $0.2 million prior year property tax assessment at the Oceans Edge Resort & Marina. |

| --- | --- | | (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 February 2020, a $(24,000) prior year property tax credit was received at the Embassy Suites Chicago. In February 2019, a $0.2 million prior year property tax assessment was received at the Oceans Edge Resort & Marina. | | --- | --- | | (3) | Includes 100% of the operating results for the Hilton San Diego Bayfront. | | --- | --- | | (4) | Hotel Adjusted EBITDAre for February 2020 is impacted by a room renovation at the Marriott Portland. Hotel Adjusted EBITDAre for February 2019 is impacted by room renovations at the Hilton San Diego Bayfront and the Renaissance Harborplace. | | --- | --- | | (5) | 20 Hotel Portfolio includes all hotels owned by the Company as of February 29, 2020. | | --- | --- | | (6) | Sold Hotel includes results for the Courtyard by Marriott Los Angeles, sold in October 2019. | | --- | --- | | (7) | 21 Hotel Portfolio includes all hotels owned by the Company as of February 28, 2019. | | --- | --- |

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

| --- | --- | | Supplemental Financial Information May 8, 2020 | | --- | Property-Level Adjusted EBITDAre and Adjusted EBITDAre Margins March 2020

|  | Hotels sorted by number of rooms | For the Month of March 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 (3) | $ | 2,709 | $ | (2,708) | $ | — | $ | 1,506 | $ | — | $ | (1,202) | -44.4% | | 2 | Renaissance Harborplace (3) | | 1,101 | | (1,296) | | (57) | | 432 | | — | | (921) | -83.7% | | 3 | Renaissance Los Angeles Airport (3) | | 1,363 | | (902) | | — | | 357 | | — | | (545) | -40.0% | | 4 | Hilton Times Square (3) | | 1,118 | | (3,958) | | 20 | | 789 | | 405 | | (2,744) | -245.4% | | 5 | Hyatt Centric Chicago Magnificent Mile (3) | | 562 | | (1,519) | | (117) | | 482 | | 117 | | (1,037) | -184.5% | | 6 | Renaissance Long Beach (3) | | 965 | | (803) | | — | | 330 | | — | | (473) | -49.0% | | 7 | Embassy Suites Chicago (3) | | 678 | | (616) | | — | | 253 | | — | | (363) | -53.5% | | 8 | Renaissance Westchester (3) | | 580 | | (1,746) | | — | | 291 | | — | | (1,455) | -250.9% | | 9 | Embassy Suites La Jolla (3) | | 1,140 | | (410) | | — | | 351 | | 213 | | 154 | 13.5% | | | 9 Hotel Portfolio (4) | | 10,216 | | (13,958) | | (154) | | 4,791 | | 735 | | (8,586) | -84.0% | | 10 | Hilton San Diego Bayfront (3) (5) | | 2,910 | | (3,003) | | (97) | | 1,071 | | 487 | | (1,542) | -53.0% | | 11 | Hyatt Regency San Francisco (3) | | 2,506 | | (3,277) | | (44) | | 1,080 | | — | | (2,241) | -89.4% | | 12 | Renaissance Washington DC (3) | | 3,447 | | (2,330) | | — | | 689 | | 556 | | (1,085) | -31.5% | | 13 | Renaissance Orlando at SeaWorld ® (3) | | 2,416 | | (1,560) | | — | | 871 | | — | | (689) | -28.5% | | 14 | Wailea Beach Resort (3) | | 5,572 | | (839) | | — | | 1,325 | | — | | 486 | 8.7% | | 15 | JW Marriott New Orleans (3) | | 1,633 | | (845) | | 1 | | 546 | | 296 | | (2) | -0.1% | | 16 | Marriott Boston Long Wharf (3) | | 1,227 | | (2,426) | | — | | 911 | | — | | (1,515) | -123.5% | | 17 | Hilton Garden Inn Chicago Downtown/Magnificent Mile (3) | | 398 | | (648) | | 2 | | 225 | | — | | (421) | -105.8% | | 18 | Hilton New Orleans St. Charles (3) | | 562 | | (250) | | — | | 216 | | — | | (34) | -6.0% | | 19 | Marriott Portland (3) (6) | | 259 | | (457) | | — | | 111 | | — | | (346) | -133.6% | | 20 | Oceans Edge Resort & Marina | | 1,486 | | 192 | | — | | 278 | | — | | 470 | 31.6% | | | 20 Hotel Portfolio (7) | $ | 32,632 | $ | (29,401) | $ | (292) | $ | 12,114 | $ | 2,074 | $ | (15,505) | -47.5% |

*Footnotes on page 33

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

| --- | --- | | Supplemental Financial Information May 8, 2020 | | --- | Property-Level Adjusted EBITDAre and Adjusted EBITDAre Margins March 2019

|  | Hotels sorted by number of rooms | For the Month of March 2019 |  |  |  |  |  |  |  |  |  |  |  |  |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | (In thousands) | | | | | Plus: | | Plus: | | Plus: | | Equals: | | Hotel | | | | Total | | Net Income / | | Other | | | | | | Hotel | | Adjusted EBITDAre | | | | Revenues | | (Loss) | | Adjustments (1) | | Depreciation | | Interest Expense | | Adjusted EBITDAre | | Margins | | 1 | Boston Park Plaza | $ | 7,268 | $ | (27) | $ | — | $ | 1,482 | $ | — | $ | 1,455 | 20.0% | | 2 | Renaissance Harborplace (6) | | 3,264 | | 305 | | — | | 497 | | — | | 802 | 24.6% | | 3 | Renaissance Los Angeles Airport | | 2,680 | | 279 | | — | | 348 | | — | | 627 | 23.4% | | 4 | Hilton Times Square | | 3,961 | | (847) | | 22 | | 848 | | 407 | | 430 | 10.9% | | 5 | Hyatt Centric Chicago Magnificent Mile | | 2,314 | | (380) | | (116) | | 480 | | 116 | | 100 | 4.3% | | 6 | Renaissance Long Beach | | 2,986 | | 776 | | — | | 316 | | — | | 1,092 | 36.6% | | 7 | Embassy Suites Chicago | | 1,941 | | 207 | | — | | 250 | | — | | 457 | 23.5% | | 8 | Renaissance Westchester | | 1,623 | | (300) | | — | | 296 | | — | | (4) | -0.2% | | 9 | Embassy Suites La Jolla | | 2,187 | | 363 | | — | | 343 | | 217 | | 923 | 42.2% | | | 9 Hotel Portfolio (4) | | 28,224 | | 376 | | (94) | | 4,860 | | 740 | | 5,882 | 20.8% | | 10 | Hilton San Diego Bayfront (5) (6) | | 13,773 | | 3,293 | | (97) | | 845 | | 768 | | 4,809 | 34.9% | | 11 | Hyatt Regency San Francisco | | 10,675 | | 1,910 | | 124 | | 1,043 | | — | | 3,077 | 28.8% | | 12 | Renaissance Washington DC | | 10,135 | | 2,264 | | — | | 821 | | 570 | | 3,655 | 36.1% | | 13 | Renaissance Orlando at SeaWorld ® | | 8,152 | | 2,391 | | — | | 857 | | — | | 3,248 | 39.8% | | 14 | Wailea Beach Resort | | 10,482 | | 3,213 | | — | | 1,294 | | — | | 4,507 | 43.0% | | 15 | JW Marriott New Orleans | | 4,694 | | 1,615 | | — | | 533 | | 302 | | 2,450 | 52.2% | | 16 | Marriott Boston Long Wharf | | 4,022 | | 145 | | — | | 897 | | — | | 1,042 | 25.9% | | 17 | Hilton Garden Inn Chicago Downtown/Magnificent Mile | | 1,306 | | (55) | | 3 | | 217 | | — | | 165 | 12.6% | | 18 | Hilton New Orleans St. Charles | | 1,641 | | 436 | | — | | 208 | | — | | 644 | 39.2% | | 19 | Marriott Portland | | 1,222 | | 286 | | — | | 132 | | — | | 418 | 34.2% | | 20 | Oceans Edge Resort & Marina | | 2,574 | | 892 | | — | | 261 | | — | | 1,153 | 44.8% | | | 20 Hotel Portfolio (7) | | 96,900 | | 16,766 | | (64) | | 11,968 | | 2,380 | | 31,050 | 32.0% | | | Add: Sold Hotel (8) | | | | | | | | | | | | | | | | Courtyard by Marriott Los Angeles | | 1,119 | | 245 | | (79) | | 84 | | 98 | | 348 | 31.1% | | | 21 Hotel Portfolio (9) | $ | 98,019 | $ | 17,011 | $ | (143) | $ | 12,052 | $ | 2,478 | $ | 31,398 | 32.0% | *Footnotes on page 33 | PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS | Page 32 | | --- | --- | | Supplemental Financial Information May 8, 2020 | | --- | Property-Level Adjusted EBITDAre and Adjusted EBITDAre Margins

March 2020/2019 Footnotes

| \(1\) | Other Adjustments for March 2020 include: a total of $\(0.1\) 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; $\(0.1\) million in finance lease obligation interest - cash ground rent at the Hyatt Centric Chicago Magnificent Mile; a $\(44,000\) true-up in city taxes assessed on commercial rents at the Hyatt Regency San Francisco; and a $\(0.1\) million prior year property tax credit, net of appeal fees at the Renaissance Harborplace. Other Adjustments for March 2019 include: a total of $\(0.1\) million in amortization of 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; a total of $\(0.2\) million in finance lease obligation interest - cash ground rent at the Courtyard by Marriott Los Angeles and the Hyatt Centric Chicago Magnificent Mile; and $0.1 million in city taxes assessed on commercial rents at the Hyatt Regency San Francisco. |

| --- | --- | | (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 March 2020, a $(0.1) million prior year property tax credit, net of appeal fees was received at the Renaissance Harborplace. | | --- | --- | | (3) | During March 2020, a total of $10.1 million in COVID-19-related costs consisting of additional wages and benefits for furloughed or laid off employees was incurred at the following hotels: $0.1 million Boston Park Plaza; $0.1 million Embassy Suites Chicago; $0.1 million Embassy Suites La Jolla; $0.1 million Hilton Garden Inn Chicago Downtown/Magnificent Mile; $45,000 Hilton New Orleans St. Charles; $0.2 million Hilton San Diego Bayfront; $1.4 million Hilton Times Square; $0.1 million Hyatt Centric Chicago Magnificent Mile; $0.8 million Hyatt Regency San Francisco; $0.3 million JW Marriott New Orleans; $1.0 million Marriott Boston Long Wharf; $0.1 million Marriott Portland; $0.4 million Renaissance Harborplace; $0.3 million Renaissance Long Beach; $0.4 million Renaissance Los Angeles Airport; $0.8 million Renaissance Orlando at SeaWorld®; $1.3 million Renaissance Washington DC; $0.8 million Renaissance Westchester; and $1.8 million Wailea Beach Resort. | | --- | --- | | (4) | 9 Hotel Portfolio includes all hotels that remained open as of March 31, 2020. | | --- | --- | | (5) | Includes 100% of the operating results for the Hilton San Diego Bayfront. | | --- | --- | | (6) | Hotel Adjusted EBITDAre for March 2020 is impacted by a room renovation at the Marriott Portland. Hotel Adjusted EBITDAre for March 2019 is impacted by room renovations at the Hilton San Diego Bayfront and the Renaissance Harborplace. | | --- | --- | | (7) | 20 Hotel Portfolio includes all hotels owned by the Company as of March 31, 2020. | | --- | --- | | (8) | Sold Hotel includes results for the Courtyard by Marriott Los Angeles, sold in October 2019. | | --- | --- | | (9) | 21 Hotel Portfolio includes all hotels owned by the Company as of March 31, 2019. | | --- | --- |

| PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS | Page 33 |

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