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): February 10, 2021

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 February 11, 2021, Sunstone Hotel Investors, Inc. (the “Company”) issued a press release regarding its financial results for the fourth quarter and year ended December 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 5.02.Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On February 10, 2021, the Compensation Committee of the Board of Directors of the Company approved a 2021 cash bonus program (the “2021 Program”) applicable to its named executive officers, including its chief executive officer (“CEO”), John V. Arabia, and its executive vice presidents (“EVP”), Bryan A. Giglia, Marc A. Hoffman, Robert C. Springer and David M. Klein. Prior to its approval, the Compensation Committee engaged in a review of its incentive compensation program with the assistance of its independent compensation consultant, FPL Associates.

Under the 2021 Program, the executives will be eligible to earn cash bonuses based on the Company’s 2021 one-year relative total stockholder returns. Each executive’s cash bonus will also be based on the executive’s achievement of individual performance goals, which include but are not limited to, individual department objectives, the advancement of the specified Company and departmental goals, and the advancement of various environmental, social and governance initiatives; although no minimum bonus is guaranteed and any bonus may equal zero in any given year. In determining each executive’s bonus under the 2021 Program, the goals will be weighted as follows for the CEO and EVP level executives:


	CEO	EVP
Goal #1<br><br>One-Year Relative Total Stockholder Return	85%	80%

Individual Performance Weighting	15.0%	20.0%
Total	100.0%	100.0%

Additionally, under the 2021 Program, Mr. Klein’s cash incentive bonus levels were increased to a threshold level equal to 60.0% of base salary, a target level equal to 102.5% of base salary, and a high level equal to 145.0% of base salary, and equity incentive award levels were increased to a threshold level equal to 150.0% of base salary, a target level equal to 212.5% of base salary, and a high level equal to 275.0% of base salary; although no minimum bonus is guaranteed and any bonus may equal zero in any given year. The bonus levels remained unchanged from the prior year for the CEO and other EVPs. The foregoing percentages are subject to annual adjustments as may be determined, modified, and approved at the sole discretion of the Compensation Committee.

Item 9.01.Financial Statements and Exhibits.

(d) The following exhibits are furnished herewith:

EXHIBIT INDEX


Exhibit No.	****	Description
99.1		Press Release, dated February 11, 2021.
99.2		Supplemental Financial Information for the fourth quarter and year ended December 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: February 11, 2021	By:	/s/ Bryan A. Giglia
		Bryan A. Giglia(Principal Financial Officer and Duly Authorized Officer)

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 FOURTH QUARTER AND FULL YEAR 2020

To Reposition and Rebrand the Renaissance Washington DC to The Westin Washington DC

IRVINE, CA – February 11, 2021 – 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 fourth quarter and year ended December 31, 2020.

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

●	Resumption of Hotel Operations: 15 of the Company’s 17 hotels were in operation as of December 31, 2020 (see details below), and 13 of the Company’s 17 hotels were in operation for the entirety of the fourth quarter 2020.
●	Net (Loss) Income: Net loss was $39.4 million as compared to net income of $45.4 million in the fourth quarter of 2019.
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●	17 Hotel Portfolio RevPAR: 17 Hotel Portfolio RevPAR decreased 86.9% to $25.36.
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●	Adjusted EBITDAre: Adjusted EBITDAre, excluding noncontrolling interest decreased 125.3% to $(19.1) million.
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●	Adjusted FFO: Adjusted FFO attributable to common stockholders per diluted share decreased 161.5% to $(0.16).
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Full Year 2020 Operational Results (as compared to Full Year 2019):

●	Net (Loss) Income: Net loss was $410.5 million as compared to net income of $142.8 million in 2019.
●	17 Hotel Portfolio RevPAR: 17 Hotel Portfolio RevPAR decreased 77.2% to $46.02.
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●	Adjusted EBITDAre: Adjusted EBITDAre, excluding noncontrolling interest decreased 127.5% to $(88.1) million.
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●	Adjusted FFO: Adjusted FFO attributable to common stockholders per diluted share decreased 165.2% to $(0.73).
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Information regarding the non-GAAP financial measures disclosed in this release is provided below in “Non-GAAP Financial Measures.” Reconciliations of non-GAAP financial measures to the most comparable GAAP measure for each of the periods presented are included later in this release.

John Arabia, President and Chief Executive Officer, stated, “Despite 2020 being the most difficult year the lodging industry has ever faced, we were able to navigate the challenges, reduce our debt levels, improve the quality of our portfolio and opportunistically invest capital to better position Sunstone as our industry recovers. Our low levered balance sheet has protected the Company during this downturn, and will provide us with capacity to expand the portfolio as we enter the next growth cycle.”

Mr. Arabia continued, “We expect 2021 to be a transition year with industry demand in the first quarter resembling the fourth quarter of 2020. That said, as the vaccine rollout has gained steam and stay-at-home restrictions have eased across the country, our portfolio has recently witnessed a measurable and encouraging increase in near-term reservations and group booking activity. More specifically, our portfolio has seen a sizable acceleration in near-term leisure reservations, the early recovery of commercial transient reservations and confirmation from many of our groups already on the books that they intend to hold their scheduled events in the third and fourth quarters. Should these positive trends continue, we would expect sequential quarter-over-quarter growth as the year progresses, and a return to hotel profitability by the second half of 2021.”

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


	Quarter Ended December 31,								Year Ended December 31,
	2020		****	2019		****	Change		2020			2019			Change

Net (Loss) Income	$	(39.4)		$	45.4		(186.7)	%	$	(410.5)		$	142.8		(387.5)	%
(Loss) Income Attributable to Common Stockholders per Diluted Share	$	(0.19)		$	0.18		(205.6)	%	$	(1.93)		$	0.54		(457.4)	%

17 Hotel Portfolio RevPAR (1)	$	25.36		$	193.52		(86.9)	%	$	46.02		$	201.79		(77.2)	%

17 Hotel Portfolio Occupancy (1)		16.0	%		82.4	%	(6,640)	bps		22.5	%		83.9	%	(6,140)	bps
17 Hotel Portfolio ADR (1)	$	158.52		$	234.86		(32.5)	%	$	204.52		$	240.51		(15.0)	%

17 Hotel Portfolio Adjusted EBITDAre Margin (1) (2)		(54.6)	%		30.1	%	(8,470)	bps		(27.3)	%		31.7	%	(5,900)	bps

Adjusted EBITDAre, excluding noncontrolling interest	$	(19.1)		$	75.5		(125.3)	%	$	(88.1)		$	320.2		(127.5)	%
Adjusted FFO Attributable to Common Stockholders	$	(34.9)		$	59.0		(159.2)	%	$	(156.6)		$	254.0		(161.7)	%
Adjusted FFO Attributable to Common Stockholders per Diluted Share	$	(0.16)		$	0.26		(161.5)	%	$	(0.73)		$	1.12		(165.2)	%

(1)	The 17 Hotel Portfolio (the “17 Hotels”) includes all hotels owned by the Company as of December 31, 2020.
(2)	The 17 Hotel Portfolio Adjusted EBITDAre Margins exclude prior year property tax adjustments, net.
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Recent Developments

COVID-19: Due to the government mandated restrictions on travel and public gatherings since the outbreak of COVID-19, the Company temporarily suspended operations at 14 of the 17 Hotels during the first half of 2020. In response to this challenging environment, the Company, working with its operators, has developed and implemented protocols to safely and responsibly resume operations at its hotels, including frequent and enhanced cleaning and sanitation, contactless check in and increased physical distancing throughout the hotels. As of the date of this release, the Company has resumed operations at all but two of its previously suspended hotels (see table below).

The Company experienced slow but steady improvements in hotel demand during October and November 2020; however, these improving demand trends moderated in December 2020 when several states reimplemented travel restrictions and stay-at-home orders. Of the group business that has cancelled to date, approximately 25% has rebooked into future periods. The Company believes that a significant portion of the group business booked through the first half of 2021 has cancelled or will eventually cancel. The Company recorded total group and transient cancellation and attrition revenue of $1.7 million and $7.7 million in the fourth quarter and full year 2020, respectively. The extent of the effects of the pandemic on the Company’s business and the hotel industry at large, however, will ultimately depend on future developments, including, but not limited to, the duration and severity of the pandemic, how quickly and successfully effective vaccines and therapies are distributed and administered, as well as the length of time it takes for demand and pricing to return and normal economic and operating conditions to resume.

During the fourth quarter and year ended December 31, 2020, the Company incurred $0.2 million and $29.1 million, respectively, of additional expenses as a result of the COVID-19 pandemic related to wages and benefits for furloughed or laid off hotel employees, net of $5.1 million and $5.2 million, respectively, in employee retention tax credits and various industry grants received by the hotels. These additional COVID-19-related expenses included severance of $3.1 million and $11.0 million incurred in the fourth quarter and year ended December 31, 2020, respectively. 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 fourth quarter and year ended December 31, 2020 to the same periods in 2019 are not meaningful.

Capital Investments: The Company invested $7.4 million and $51.4 million into its portfolio during the fourth quarter and year ended December 31, 2020, respectively. In 2021, the Company expects to invest approximately $70 million to $80 million of capital, including approximately $30 million to reposition and rebrand the Renaissance Washington DC to The Westin Washington DC. The total cost of repositioning is expected to be approximately $70 million and will be incurred in 2021 and 2022. Upon substantial completion of the repositioning, the hotel will be rebranded The Westin Washington DC. Additional capital projects in 2021 include approximately $9 million at the Hilton San Diego Bayfront to convert a previously leased restaurant space to meeting space and re-concept the ground floor hotel restaurant, approximately $3 million to add an adult pool at the Wailea Beach Resort and approximately $2 million to convert a vacant retail space to meeting space at the Boston Park Plaza.

Hotel Rebranding: On February 3, 2021, the Company entered into an agreement with affiliates of Marriott International to rebrand the Renaissance Washington DC to The Westin Washington DC, upon substantial completion of a renovation of the hotel.

Mr. Arabia continued, “Building on our previous success repositioning hotels in our portfolio to maximize value, we are very excited about the pending conversion of the Renaissance Washington DC to The Westin Washington DC. Over the past several years, the hotel’s immediate surroundings have improved significantly with the addition of the neighboring City Center, Anthem Row, Apple’s flagship store in the beautifully renovated Carnegie Library and countless high-end restaurants and amenities. Our incremental repositioning investment of roughly $30 million above a cyclical renovation is expected to deliver attractive returns, and position the hotel as a flagship convention hotel in Washington DC.”

Debt: In December 2020, the Company completed second amendments to the agreements governing its unsecured debt, consisting of its revolving credit facility, term loans and senior notes, extending financial covenant relief from June 30, 2021 to March 31, 2022, with quarterly testing resuming for the period ending March 31, 2022. Additionally, the amendments extend the modification of the required quarterly-tested financial covenants to ease compliance for four quarters following the end of the covenant relief period. At December 31, 2020, the Company had no amount outstanding on the revolving portion of its amended credit facility, with $500.0 million of capacity available for additional borrowing under the agreement.

As part of the second amendments to the agreements governing the Company’s unsecured debt, the Company was granted the ability to apply the net proceeds received from the completed sale of the Renaissance Los Angeles Airport to repay the $107.9 million mortgage loan secured by the Renaissance Washington DC. The loan was scheduled to mature on May 1, 2021, and was repaid without penalty on December 29, 2020.

Additionally, in December 2020, the Company executed an assignment-in-lieu agreement with the holder of the $77.2 million mortgage secured by the Hilton Times Square. As stipulated in the agreement, the Company satisfied all outstanding debt obligations, including regular and default interest or late charges that were assessed, in exchange for a $20.0 million payment, the credit of $3.2 million of restricted cash held by the mortgage holder, the assignment of the Company’s leasehold interest in the Hilton Times Square and the retention of $11.6 million in certain potential employee-related obligations, which is currently held in escrow until those obligations are resolved. In conjunction with this agreement, the Company wrote-off approximately $22.2 million of various accrued expenses related to the hotel’s operating lease and sublease, including, but not limited to, accrued property taxes, recapture of deferred taxes due from a prior deferral period, accrued ground rent and accrued easement payments. The Company removed the net assets and liabilities related to the hotel from its December 31, 2020 balance sheet, and recorded a $6.4 million gain on extinguishment of debt as a result of this transaction.

Finally, in December 2020, the Company exercised its first one-year option to extend the maturity date of the mortgage loan secured by the Hilton San Diego Bayfront from December 2020 to December 2021. The Company expects to exercise its two remaining one-year options to further extend the loan’s maturity to December 2023.

After the repayment of the mortgage loan secured by the Renaissance Washington DC and the resolution of the mortgage loan secured by the Hilton Times Square, only three of the 17 Hotels are secured by mortgage loans. Assuming the Company is successful in extending the maturity of the mortgage secured by the Hilton San Diego Bayfront from December 2021 to December 2023, the Company’s first debt maturity will be for the $85.0 million unsecured term loan due in September 2022.

Stock Repurchase and At the Market Stock Offering Programs: On February 10, 2021, the Company's Board of Directors reauthorized the existing stock repurchase program, allowing the Company to acquire up to $500.0 million of the Company's common and preferred stock. The authorization has no stated expiration date. Future repurchases will depend on various factors, including the Company's capital needs, restrictions under its various financing agreements, as well as the price of the Company's common and preferred stock.

Additionally, the Company’s Board of Directors reviewed and maintained the existing “At the Market” stock offering program, allowing the Company to issue common stock up to an aggregate offering amount of $300.0 million. The existing authorization has no stated expiration date.

Balance Sheet/Liquidity Update

As of December 31, 2020, the Company had $416.1 million of cash and cash equivalents, including restricted cash of $47.7 million, total assets of $3.0 billion, including $2.5 billion of net investments in hotel properties, total consolidated debt of $747.9 million and stockholders’ equity of $2.0 billion.

Operations Update

As of December 31, 2020 and through the date of this release, the status of the Company’s 17 Hotels is as follows:


Hotel	Number of Rooms	% of Total Rooms	Suspension Date	Resumption Date
Boston Park Plaza (1)	1,060	11.8%	N/A	N/A
Embassy Suites La Jolla (1)	340	3.8%	N/A	N/A
Renaissance Long Beach (1)	374	4.1%	N/A	N/A
Oceans Edge Resort & Marina	175	1.9%	March 22, 2020	June 4, 2020
Embassy Suites Chicago	368	4.1%	April 1, 2020	July 1, 2020
Marriott Boston Long Wharf	415	4.6%	March 12, 2020	July 7, 2020
Hilton New Orleans St. Charles	252	2.8%	March 28, 2020	July 13, 2020
Hyatt Centric Chicago Magnificent Mile	419	4.6%	April 6, 2020	July 13, 2020
JW Marriott New Orleans	501	5.6%	March 28, 2020	July 14, 2020
Hilton San Diego Bayfront	1,190	13.2%	March 23, 2020	August 11, 2020
Renaissance Washington DC	807	8.9%	March 26, 2020	August 24, 2020
Hyatt Regency San Francisco	821	9.1%	March 22, 2020	October 1, 2020
Renaissance Orlando at SeaWorld®	781	8.7%	March 20, 2020	October 1, 2020
The Bidwell Marriott Portland	258	2.9%	March 27, 2020	October 5, 2020
Wailea Beach Resort	547	6.1%	March 25, 2020	November 1, 2020
Total of Fifteen Open Hotels	8,308	92.1%

Hilton Garden Inn Chicago Downtown/Magnificent Mile	361	4.0%	March 27, 2020
Renaissance Westchester	348	3.9%	April 4, 2020
Total of Two Hotels with Suspended Operations	709	7.9%

(1)	The Boston Park Plaza, Embassy Suites La Jolla and Renaissance Long Beach remained in operation throughout 2020.

Operating statistics for the hotels that were open all or part of the fourth quarter of 2020 are as follows:


	October			November			December			Fourth Quarter
	2020			2020			2020			2020
13 Hotels Open the Entire Fourth Quarter of 2020
Number of Hotels (1)		13			13			13			13
Number of Rooms		7,503			7,503			7,503			7,503
RevPAR	$	28.98		$	27.48		$	19.30		$	25.28
Occupancy		19.5	%		21.4	%		13.4	%		18.1	%
Average Daily Rate	$	148.63		$	128.40		$	144.00		$	139.66

1 Hotel That Resumed Operations in October 2020 (The Bidwell Marriott Portland)
Number of Hotels (1)		1			1			1			1
Number of Rooms		258			258			258			258
RevPAR	$	3.79		$	3.63		$	6.24		$	4.55
Occupancy		2.7	%		2.7	%		5.1	%		3.5	%
Average Daily Rate	$	140.31		$	134.27		$	122.40		$	129.96

1 Hotel That Resumed Operations in November 2020 (Wailea Beach Resort)
Number of Hotels		—			1			1			1
Number of Rooms		—			547			547			547
RevPAR	$	—		$	92.27		$	117.22		$	69.53
Occupancy		—	%		19.1	%		23.4	%		14.1	%
Average Daily Rate	$	—		$	483.10		$	500.96		$	493.09

15 Hotels Open All or Part of the Fourth Quarter of 2020
Number of Hotels		14			15			15			15
Number of Rooms		7,761			8,308			8,308			8,308
RevPAR	$	28.23		$	31.05		$	25.35		$	27.58
Occupancy		19.0	%		20.7	%		13.8	%		17.4	%
Average Daily Rate	$	148.59		$	149.99		$	183.71		$	158.53

(1)	Hyatt Regency San Francisco and Renaissance Orlando at SeaWorld® resumed operations on October 1, 2020. Since the hotels were operating for the full fourth quarter of 2020, they are included with the 13 Hotels Open the Entire Fourth Quarter of 2020 rather than included as a Hotel that Resumed Operations in October 2020.

Preliminary January 2021 results for the 15 hotels open during the entire month include the following ($ in millions, except RevPAR and ADR):


	January
	2021 (1)			2020			Change
15 Open Hotels Room Revenue	$	7.0		$	43.8			(84.1)	%

15 Open Hotels RevPAR	$	27.03		$	170.39			(84.1)	%
15 Open Hotels Occupancy		14.4	%		73.4	%		(5,900)	bps
15 Open Hotels ADR	$	187.72		$	232.14			(19.1)	%

(1)	January 2021 results are preliminary and may be adjusted during the Company’s month-end close process.
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Due to continued uncertainty regarding the duration and extent of the COVID-19 pandemic, the Company cannot provide further assurances regarding the pandemic’s effect on the Company’s results, and the Company does not intend to provide further updates unless deemed appropriate.

Dividend Update

On February 10, 2021, 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 April 15, 2021 to stockholders of record as of March 31, 2021.

The Company has suspended its quarterly common stock cash dividends. The resumption in quarterly common dividends will be determined by the Company’s Board of Directors after considering the Company’s obligations under its various financing agreements, projected taxable income, compliance with its debt covenants, long-term operating projections, expected capital requirements and risks affecting the Company’s business.

Supplemental Disclosures

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

Earnings Call

The Company will host a conference call to discuss fourth quarter and full year 2020 financial results on February 12, 2021, at 12:00 p.m. Eastern Time (9:00 a.m. Pacific Time). A live webcast of the call will be available via the Investor Relations section of the Company’s website at www.sunstonehotels.com. Alternatively, interested parties may dial 1-323-289-6576 and reference confirmation code 1183215 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 17 hotels comprised of 9,017 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 impact on the Company’s business of the COVID-19 pandemic and the response of governments and the Company to the outbreak; increased risks related to employee matters, including increased employment litigation and claims for severance or other benefits tied to termination or furloughs as a result of temporary hotel suspensions or reduced hotel operations due to COVID-19; the impact on our business of potential defaults by us on our debt agreements or leases; general economic and business conditions, including a U.S. recession; trade conflicts and tariffs between the U.S. and its trading partners; changes impacting global travel; regional or global economic slowdowns, which may diminish the desire for leisure travel or the need for business travel; any type of flu or disease-related pandemic that impacts travel or the ability to travel, including COVID-19; 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, 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 three of the 17 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 6

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.

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 acquisitions that meet the definition of a business are expensed in the year incurred. We exclude the effect of these costs because we believe they are not reflective of the ongoing performance of the Company or our hotels.

●

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

●

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

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. 9

Sunstone Hotel Investors, Inc.

Consolidated Balance Sheets

(In thousands, except share data)


	December 31,			December 31,
	2020		****	2019

Assets
Current assets:
Cash and cash equivalents	$	368,406		$	816,857
Restricted cash		47,733			48,116
Accounts receivable, net		8,566			35,209
Prepaid expenses and other current assets		10,440			13,550
Total current assets		435,145			913,732

Investment in hotel properties, net		2,461,498			2,872,353
Finance lease right-of-use asset, net		46,182			47,652
Operating lease right-of-use assets, net		26,093			60,629
Deferred financing costs, net		4,354			2,718
Other assets, net		12,445			21,890

Total assets	$	2,985,717		$	3,918,974

Liabilities and Equity
Current liabilities:
Accounts payable and accrued expenses	$	37,326		$	35,614
Accrued payroll and employee benefits		15,392			25,002
Dividends and distributions payable		3,208			135,872
Other current liabilities		32,606			46,955
Current portion of notes payable, net		2,261			82,109
Total current liabilities		90,793			325,552

Notes payable, less current portion, net		742,528			888,954
Finance lease obligation, less current portion		15,569			15,570
Operating lease obligations, less current portion		29,954			49,691
Other liabilities		17,494			18,136
Total liabilities		896,338			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 December 31, 2020 and 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 December 31, 2020 and 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, 215,593,401 shares issued and outstanding at December 31, 2020 and 224,855,351 shares issued and outstanding at December 31, 2019		2,156			2,249
Additional paid in capital		2,586,108			2,683,913
Retained earnings		913,766			1,318,455
Cumulative dividends and distributions		(1,643,386)			(1,619,779)
Total stockholders' equity		2,048,644			2,574,838
Noncontrolling interest in consolidated joint venture		40,735			46,233
Total equity		2,089,379			2,621,071

Total liabilities and equity	$	2,985,717		$	3,918,974

Sunstone Hotel Investors, Inc.

Consolidated Statements of Operations

(In thousands, except per share data)


		Quarter Ended December 31,				Year Ended December 31,
	****	2020		2019		2020		2019
		(unaudited)
Revenues
Room		$	21,987	$	186,557	$	169,522	$	767,392
Food and beverage			4,588		66,686		54,900		272,869
Other operating			10,785		19,709		43,484		74,906
Total revenues			37,360		272,952		267,906		1,115,167
Operating expenses
Room			11,940		50,283		76,977		202,889
Food and beverage			8,607		46,287		63,140		186,436
Other operating			1,353		4,100		7,636		16,594
Advertising and promotion			3,294		13,371		23,741		54,369
Repairs and maintenance			5,585		10,512		27,084		41,619
Utilities			4,073		6,655		17,311		27,311
Franchise costs			723		8,241		7,060		32,265
Property tax, ground lease and insurance			16,873		20,423		76,848		83,265
Other property-level expenses			2,745		32,553		49,854		130,321
Corporate overhead			5,735		7,275		28,149		30,264
Depreciation and amortization			32,761		37,264		137,051		147,748
Impairment losses			13,478		24,713		146,944		24,713
Total operating expenses			107,167		261,677		661,795		977,794
Interest and other income			85		3,060		2,836		16,557
Interest expense			(10,108)		(10,822)		(53,307)		(54,223)
Gain on sale of assets			34,109		42,935		34,298		42,935
Gain on extinguishment of debt, net			6,356		—		6,146		—
(Loss) income before income taxes			(39,365)		46,448		(403,916)		142,642
Income tax (provision) benefit, net			(15)		(1,034)		(6,590)		151
Net (loss) income			(39,380)		45,414		(410,506)		142,793
Loss (income) from consolidated joint venture attributable to noncontrolling interest			1,381		(998)		5,817		(7,060)
Preferred stock dividends			(3,208)		(3,208)		(12,830)		(12,830)
(Loss) income attributable to common stockholders		$	(41,207)	$	41,208	$	(417,519)	$	122,903

Basic and diluted per share amounts:
Basic and diluted (loss) income attributable to common stockholders per common share		$	(0.19)	$	0.18	$	(1.93)	$	0.54

Basic and diluted weighted average common shares outstanding			214,257		223,638		215,934		225,681

Distributions declared per common share		$	—	$	0.59	$	0.05	$	0.74

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 December 31,					Year Ended December 31,
	2020		****	2019		2020			2019

Net (loss) income	$	(39,380)		$	45,414	$	(410,506)	$	142,793
Operations held for investment:
Depreciation and amortization		32,761			37,264		137,051		147,748
Interest expense		10,108			10,822		53,307		54,223
Income tax provision (benefit), net		15			1,034		6,590		(151)
Gain on sale of assets		(34,109)			(42,935)		(34,298)		(42,935)
Impairment losses - hotel properties		13,478			24,713		144,642		24,713
EBITDAre		(17,127)			76,312		(103,214)		326,391

Operations held for investment:
Amortization of deferred stock compensation		2,067			2,145		9,576		9,313
Amortization of right-of-use assets and liabilities		(337)			(259)		(1,260)		(782)
Finance lease obligation interest - cash ground rent		(351)			(407)		(1,404)		(2,175)
Gain on extinguishment of debt, net		(6,356)			—		(6,146)		—
Property-level severance		3,081			—		11,038		—
Prior year property tax adjustments, net		(490)			(121)		(276)		168
Prior owner contingency funding		—			—		—		(900)
Impairment loss - abandoned development costs		—			—		2,302		—
Noncontrolling interest:
Loss (income) from consolidated joint venture attributable to noncontrolling interest		1,381			(998)		5,817		(7,060)
Depreciation and amortization		(810)			(803)		(3,228)		(2,875)
Interest expense		(224)			(476)		(1,194)		(2,126)
Amortization of right-of-use asset and liability		73			73		290		290
Impairment loss - abandoned development costs		—			—		(449)		—
Adjustments to EBITDAre, net		(1,966)			(846)		15,066		(6,147)

Adjusted EBITDAre, excluding noncontrolling interest	$	(19,093)		$	75,466	$	(88,148)	$	320,244

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 December 31,					Year Ended December 31,
		2020		****	2019		2020			2019

Net (loss) income	****	$	(39,380)		$	45,414	$	(410,506)	$	142,793
Preferred stock dividends			(3,208)			(3,208)		(12,830)		(12,830)
Operations held for investment:
Real estate depreciation and amortization			32,133			36,639		134,555		145,260
Gain on sale of assets			(34,109)			(42,935)		(34,298)		(42,935)
Impairment losses - hotel properties			13,478			24,713		144,642		24,713
Noncontrolling interest:
Loss (income) from consolidated joint venture attributable to noncontrolling interest			1,381			(998)		5,817		(7,060)
Real estate depreciation and amortization			(810)			(803)		(3,228)		(2,875)
FFO attributable to common stockholders			(30,515)			58,822		(175,848)		247,066

Operations held for investment:
Real estate amortization of right-of-use assets and liabilities			78			147		376		590
Noncash interest on derivatives and finance lease obligations, net			(794)			(857)		4,740		6,051
Gain on extinguishment of debt, net			(6,356)			—		(6,146)		—
Property-level severance			3,081			—		11,038		—
Prior year property tax adjustments, net			(490)			(121)		(276)		168
Prior owner contingency funding			—			—		—		(900)
Impairment loss - abandoned development costs			—			—		2,302		—
Noncash income tax provision, net			—			934		7,415		688
Noncontrolling interest:
Real estate amortization of right-of-use asset and liability			73			73		290		290
Noncash interest on derivatives, net			—			—		(27)		—
Impairment loss - abandoned development costs			—			—		(449)		—
Adjustments to FFO attributable to common stockholders, net			(4,408)			176		19,263		6,887

Adjusted FFO attributable to common stockholders		$	(34,923)		$	58,998	$	(156,585)	$	253,953

FFO attributable to common stockholders per diluted share		$	(0.14)		$	0.26	$	(0.81)	$	1.09

Adjusted FFO attributable to common stockholders per diluted share		$	(0.16)		$	0.26	$	(0.73)	$	1.12

Basic weighted average shares outstanding			214,257			223,638		215,934		225,681
Shares associated with unvested restricted stock awards			185			448		—		276
Diluted weighted average shares outstanding			214,442			224,086		215,934		225,957

Sunstone Hotel Investors, Inc.

Non-GAAP Financial Measures

Hotel Adjusted EBITDAre and Margins

(Unaudited and in thousands)


	Quarter Ended December 31,				Year Ended December 31,
	2020		2019		2020		2019

17 Hotel Portfolio Adjusted EBITDAre Margin, excluding prior year property tax adjustments, net (1)		(54.6)%		30.1%		(27.3)%		31.7%


Total revenues	$	37,360	$	272,952	$	267,906	$	1,115,167
Non-hotel revenues (2)		(23)		(22)		(91)		(92)
Reimbursements to offset net losses (3)		(3,760)		—		(10,725)		—
Total Actual Hotel Revenues		33,577		272,930		257,090		1,115,075
Sold/Disposed hotel revenues (4)		(1,249)		(34,624)		(24,096)		(135,688)
Total 17 Hotel Portfolio Revenues	$	32,328	$	238,306	$	232,994	$	979,387


Net (loss) income	$	(39,380)	$	45,414	$	(410,506)	$	142,793
Non-hotel revenues (2)		(23)		(22)		(91)		(92)
Reimbursements to offset net losses (3)		(3,760)		—		(10,725)		—
Non-hotel operating expenses, net (5)		(614)		(591)		(2,347)		(2,906)
Property-level severance (6)		3,081		—		11,038		—
Hotel union labor dispute (7)		(1,347)		—		—		—
Property-level credit card merchant class action settlement and legal fees (8)		(935)		—		(995)		—
Prior year property tax adjustments, net (9)		(490)		(121)		(276)		168
Taxes assessed on commercial rents (10)		—		370		10		1,383
Corporate overhead		5,735		7,275		28,149		30,264
Depreciation and amortization		32,761		37,264		137,051		147,748
Impairment losses		13,478		24,713		146,944		24,713
Interest and other income		(85)		(3,060)		(2,836)		(16,557)
Interest expense		10,108		10,822		53,307		54,223
Gain on sale of assets		(34,109)		(42,935)		(34,298)		(42,935)
Gain on extinguishment of debt, net		(6,356)		—		(6,146)		—
Income tax provision (benefit), net		15		1,034		6,590		(151)
Actual Hotel Adjusted EBITDAre		(21,921)		80,163		(85,131)		338,651
Sold/Disposed hotel Adjusted EBITDAre (4)		4,272		(8,498)		21,550		(28,350)
17 Hotel Portfolio Adjusted EBITDAre, excluding prior year property tax adjustments, net	$	(17,649)	$	71,665	$	(63,581)	$	310,301

*Footnotes on following page 14

(1)	17 Hotel Portfolio Adjusted EBITDAre Margin, excluding prior year property tax adjustments, net is calculated as 17 Hotel Portfolio Adjusted EBITDAre, excluding prior year property tax adjustments, net divided by Total 17 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)	Reimbursements to offset net losses include $3.8 million and $10.7 million for the fourth quarter and year ended December 31, 2020, respectively, at the Hyatt Regency San Francisco as stipulated by the hotel’s operating lease agreement.
---	---
(4)	Sold/Disposed hotel includes hotel revenues and Adjusted EBITDAre generated during the Company's ownership period for the Renaissance Harborplace, the Renaissance Los Angeles Airport and the Courtyard by Marriott Los Angeles, sold in July 2020, December 2020 and October 2019, respectively, along with the Hilton Times Square, which was assigned to the hotel’s mortgage holder in December 2020.
---	---
(5)	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.
---	---
(6)	Property-level severance includes a total of $3.1 million and $11.0 million in COVID-19-related severance recorded at a majority of the Company’s hotels during the fourth quarter and year ended December 31, 2020, respectively.
---	---
(7)	Hotel union labor dispute includes the reclass of a $1.3 million labor dispute expense at the Hilton Times Square recorded in the second quarter of 2020 to gain on extinguishment of debt, net in conjunction with the hotel’s assignment to its mortgage holder in December 2020.
---	---
(8)	Property-level credit card merchant class action settlement and legal fees include total settlements of $1.0 million received by a majority of the Company’s hotels in the fourth quarter of 2020, partially offset by $0.1 million in legal fees at the Renaissance Westchester. For the year ended December 31, 2020, property-level credit card merchant class action settlement and legal fees include total settlements of $1.6 million received by a majority of the Company’s hotels, partially offset by $0.6 million in legal fees at the Renaissance Westchester.
---	---
(9)	Prior year property tax adjustments, net for the fourth quarter of 2020 include total credits of $0.5 million received by the Renaissance Long Beach and the Renaissance Los Angeles Airport. Prior year property tax adjustments, net for the year ended December 31, 2020 also include total net assessments of $0.2 million received by the Embassy Suites Chicago, the Hilton Garden Inn Chicago Downtown/Magnificent Mile, the Hyatt Centric Chicago Magnificent Mile, the Renaissance Harborplace and the Renaissance Long Beach. Prior year property tax adjustments, net for the fourth quarter of 2019 include total credits of $0.1 million received by the Embassy Suites Chicago, the Hilton Garden Inn Chicago Downtown/Magnificent Mile and the Hyatt Centric Chicago Magnificent Mile. Prior year property tax adjustments, net for the year ended December 31, 2019 also include total net assessments of $0.3 million received by the Embassy Suites Chicago, the Embassy Suites La Jolla, the Hilton Garden Inn Chicago Downtown/Magnificent Mile, the Hyatt Centric Chicago Magnificent Mile, the Oceans Edge Resort & Marina and the Renaissance Los Angeles Airport.
---	---
(10)	Taxes assessed on commercial rents for the fourth quarters of 2020 and 2019 include zero and $0.4 million, respectively, at the Hyatt Regency San Francisco. For the years ended December 31, 2020 and 2019, taxes assessed on commercial rents include $10,000 and $1.4 million, respectively, at the Hyatt Regency San Francisco.
---	---

Exhibit 99.2

Supplemental Financial InformationFebruary 11, 2021




Supplemental Financial Information<br><br>For the quarter and year ended December 31, 2020<br><br>February 11, 2021<br><br>

Supplemental Financial InformationFebruary 11, 2021

Table of Contents


CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR								3
About Sunstone								4
Forward-Looking Statement								5
Non-GAAP Financial Measures								6
CORPORATE FINANCIAL INFORMATION								9
Condensed Consolidated Balance Sheets Q4 2020 – Q4 2019								10
Consolidated Statements of Operations Q4 and FY 2020/2019								12
Reconciliation of Net (Loss) Income to EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest Q4 and FY 2020/2019								13
Reconciliation of Net (Loss) Income to FFO and Adjusted FFO Attributable to Common Stockholders Q4 and FY 2020/2019								14
Pro Forma Consolidated Statements of Operations FY 2020, Q4 2020 – Q1 2020								15
Pro Forma Consolidated Statements of Operations FY 2019, Q4 2019 – Q1 2019								16
Pro Forma Reconciliation of Net Loss to EBITDAre, Adjusted EBITDAre, Excluding Noncontrolling Interest, FFO and Adjusted FFO Attributable to Common Stockholders FY 2020								17
Pro Forma Reconciliation of Net Income to EBITDAre, Adjusted EBITDAre, Excluding Noncontrolling Interest, FFO and Adjusted FFO Attributable to Common Stockholders FY 2019								20
Pro Forma Reconciliation of Net Income to EBITDAre, Adjusted EBITDAre, Excluding Noncontrolling Interest, FFO and Adjusted FFO Attributable to Common Stockholders Q4 2019								23
Pro Forma Reconciliation of Net Income to EBITDAre, Adjusted EBITDAre, Excluding Noncontrolling Interest, FFO and Adjusted FFO Attributable to Common Stockholders Q3 2019								25
Pro Forma Reconciliation of Net Income to EBITDAre, Adjusted EBITDAre, Excluding Noncontrolling Interest, FFO and Adjusted FFO Attributable to Common Stockholders Q2 2019								27
Pro Forma Reconciliation of Net Income to EBITDAre, Adjusted EBITDAre, Excluding Noncontrolling Interest, FFO and Adjusted FFO Attributable to Common Stockholders Q1 2019								29
CAPITALIZATION								32
Comparative Capitalization Q4 2020 – Q4 2019								33

Supplemental Financial InformationFebruary 11, 2021

Table of Contents


Consolidated Debt Summary Schedule								34
Consolidated Amortization and Debt Maturity Schedule as of December 31, 2020								35
PROPERTY-LEVEL DATA								36
Hotel Information as of February 11, 2021								37
PROPERTY-LEVEL OPERATING STATISTICS								38
Property-Level Operating Statistics October 2020/2019								39
Property-Level Operating Statistics November 2020/2019								40
Property-Level Operating Statistics December 2020/2019								41
Property-Level Operating Statistics Q4 2020/2019								42
Property-Level Operating Statistics FY 2020/2019								43
PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS								45
Property-Level Adjusted EBITDAre & Adjusted EBITDAre Margins Q4 2020								46
Property-Level Adjusted EBITDAre & Adjusted EBITDAre Margins FY 2020								47

Supplemental Financial InformationFebruary 11, 2021

CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR


CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR			Page 3

Supplemental Financial InformationFebruary 11, 2021

About Sunstone

Sunstone Hotel Investors, Inc. (the “Company,” “we,” and “our”) (NYSE: SHO) is a lodging real estate investment trust (“REIT”) that as of February 11, 2021 has interests in 17 hotels comprised of 9,017 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, resort and destination locations that benefit from significant barriers to entry by competitors 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 Headquarters200 Spectrum Center Drive, 21^st^ Floor Irvine, CA 92618 (949) 330-4000

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

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

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


CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR			Page 4

Supplemental Financial InformationFebruary 11, 2021

Forward-Looking Statement

This presentation contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,” “will” and other similar terms and phrases, including opinions, references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: the impact on the Company’s business of the COVID-19 pandemic and the response of governments and the Company to the outbreak; increased risks related to employee matters, including increased employment litigation and claims for severance or other benefits tied to termination or furloughs as a result of temporary hotel suspensions or reduced hotel operations due to COVID-19; the impact on our business of potential defaults by us on our debt agreements or leases; general economic and business conditions, including a U.S. recession; trade conflicts and tariffs between the U.S. and its trading partners; changes impacting global travel; regional or global economic slowdowns, which may diminish the desire for leisure travel or the need for business travel; any type of flu or disease-related pandemic that impacts travel or the ability to travel, including COVID-19; 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, 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 three of the 17 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 5

Supplemental Financial InformationFebruary 11, 2021

Non-GAAP Financial Measures


CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR			Page 6

Supplemental Financial InformationFebruary 11, 2021

●	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 acquisitions that meet the definition of a business are expensed in the year incurred. We exclude the effect of these costs because we believe they are not reflective of the ongoing performance of the Company or our hotels.
---	---
●	Cumulative effect of a change in accounting principle: from time to time, the FASB promulgates new accounting standards that require the consolidated statement of operations to reflect the cumulative effect of a change in accounting principle. We exclude these one-time adjustments, which include the accounting impact from prior periods, because they do not reflect our actual performance for that period.
---	---
●	Other adjustments: we exclude other adjustments that we believe are outside the ordinary course of business because we do not believe these costs reflect our actual performance for the period and/or the ongoing operations of our hotels. Such items may include: lawsuit settlement costs; prior year property tax assessments or credits; the write-off of development costs associated with abandoned projects; property-level restructuring, severance and management transition costs; debt resolution costs; lease terminations; and property insurance proceeds or uninsured losses.
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CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR			Page 7

Supplemental Financial InformationFebruary 11, 2021

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.

The 17 Hotel Portfolio includes all hotels owned by the Company as of December 31, 2020.


CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR			Page 8

Supplemental Financial InformationFebruary 11, 2021

CORPORATE FINANCIAL INFORMATION


CORPORATE FINANCIAL INFORMATION			Page 9

Supplemental Financial InformationFebruary 11, 2021

Condensed Consolidated Balance Sheets Q4 2020 – Q4 2019


(In thousands)		December 31, 2020^(1)^		September 30, 2020^(2)^		June 30, 2020^(3)^		March 31, 2020^(4)^		December 31, 2019^(5)^
Assets	****
Investment in hotel properties:
Land		$	571,212	$	581,426	$	581,426	$	600,649	$	601,181
Buildings & improvements			2,523,750		2,707,102		2,694,935		2,800,187		2,950,534
Furniture, fixtures, & equipment			431,918		464,588		460,526		496,312		506,754
Other			37,766		64,880		72,775		71,327		73,992
			3,564,646		3,817,996		3,809,662		3,968,475		4,132,461
Less accumulated depreciation & amortization			(1,103,148)		(1,196,520)		(1,164,181)		(1,212,063)		(1,260,108)
			2,461,498		2,621,476		2,645,481		2,756,412		2,872,353

Finance lease right-of-use asset, net			46,182		46,549		46,917		47,284		47,652
Operating lease right-of-use assets, net			26,093		39,489		40,351		41,198		60,629
Other noncurrent assets, net			16,799		16,510		15,415		16,390		24,608

Current assets:
Cash and cash equivalents			368,406		461,288		540,420		847,445		816,857
Restricted cash			47,733		42,346		45,960		53,485		48,116
Other current assets, net			19,006		19,124		12,474		37,326		48,759
Assets held for sale, net			—		—		76,683		—		—
Total assets		$	2,985,717	$	3,246,782	$	3,423,701	$	3,799,540	$	3,918,974

*Footnotes on following page


CORPORATE FINANCIAL INFORMATION			Page 10

Supplemental Financial InformationFebruary 11, 2021

Condensed Consolidated Balance Sheets Q4 2020– Q4 2019 (cont.)


(In thousands)		December 31, 2020^(1)^		September 30, 2020^(2)^		June 30, 2020^(3)^		March 31, 2020^(4)^		December 31, 2019^(5)^
Liabilities	****
Current liabilities:
Current portion of notes payable, net		$	2,261	$	188,096	$	188,757	$	82,189	$	82,109
Other current liabilities			88,532		99,679		97,129		104,029		243,443
Total current liabilities			90,793		287,775		285,886		186,218		325,552

Notes payable, less current portion, net			742,528		743,545		829,673		1,187,468		888,954
Finance lease obligation, less current portion			15,569		15,569		15,570		15,570		15,570
Operating lease obligations, less current portion			29,954		45,939		47,206		48,460		49,691
Other liabilities			17,494		25,909		25,374		24,818		18,136
Total liabilities			896,338		1,118,737		1,203,709		1,462,534		1,297,903

Equity
Stockholders' equity:
6.95% Series E cumulative redeemable preferred stock			115,000		115,000		115,000		115,000		115,000
6.45% Series F cumulative redeemable preferred stock			75,000		75,000		75,000		75,000		75,000
Common stock, $0.01 par value, 500,000,000 shares authorized			2,156		2,156		2,156		2,155		2,249
Additional paid in capital			2,586,108		2,584,005		2,581,637		2,578,445		2,683,913
Retained earnings			913,766		951,765		1,041,056		1,156,394		1,318,455
Cumulative dividends and distributions			(1,643,386)		(1,640,178)		(1,636,970)		(1,633,763)		(1,619,779)
Total stockholders' equity			2,048,644		2,087,748		2,177,879		2,293,231		2,574,838
Noncontrolling interest in consolidated joint venture			40,735		40,297		42,113		43,775		46,233
Total equity			2,089,379		2,128,045		2,219,992		2,337,006		2,621,071
Total liabilities and equity		$	2,985,717	$	3,246,782	$	3,423,701	$	3,799,540	$	3,918,974

(1)	As presented on Form 10-K to be filed in February 2021.
(2)	As presented on Form 10-Q filed on November 6, 2020.
---	---
(3)	As presented on Form 10-Q filed on August 5, 2020.
---	---
(4)	As presented on Form 10-Q filed on May 11, 2020.
---	---
(5)	As presented on Form 10-K filed on February 19, 2020.
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CORPORATE FINANCIAL INFORMATION			Page 11

Supplemental Financial InformationFebruary 11, 2021

Consolidated Statements of Operations Q4 and FY 2020/2019


		Quarter Ended December 31,				Year Ended December 31,
(In thousands, except per share data)	****	2020		2019		2020		2019
Revenues
Room		$	21,987	$	186,557	$	169,522	$	767,392
Food and beverage			4,588		66,686		54,900		272,869
Other operating			10,785		19,709		43,484		74,906
Total revenues			37,360		272,952		267,906		1,115,167
Operating expenses
Room			11,940		50,283		76,977		202,889
Food and beverage			8,607		46,287		63,140		186,436
Other operating			1,353		4,100		7,636		16,594
Advertising and promotion			3,294		13,371		23,741		54,369
Repairs and maintenance			5,585		10,512		27,084		41,619
Utilities			4,073		6,655		17,311		27,311
Franchise costs			723		8,241		7,060		32,265
Property tax, ground lease and insurance			16,873		20,423		76,848		83,265
Other property-level expenses			2,745		32,553		49,854		130,321
Corporate overhead			5,735		7,275		28,149		30,264
Depreciation and amortization			32,761		37,264		137,051		147,748
Impairment losses			13,478		24,713		146,944		24,713
Total operating expenses			107,167		261,677		661,795		977,794

Interest and other income			85		3,060		2,836		16,557
Interest expense			(10,108)		(10,822)		(53,307)		(54,223)
Gain on sale of assets			34,109		42,935		34,298		42,935
Gain on extinguishment of debt, net			6,356		—		6,146		—
(Loss) income before income taxes			(39,365)		46,448		(403,916)		142,642
Income tax (provision) benefit, net			(15)		(1,034)		(6,590)		151
Net (loss) income			(39,380)		45,414		(410,506)		142,793
Loss (income) from consolidated joint venture attributable to noncontrolling interest			1,381		(998)		5,817		(7,060)
Preferred stock dividends			(3,208)		(3,208)		(12,830)		(12,830)
(Loss) income attributable to common stockholders		$	(41,207)	$	41,208	$	(417,519)	$	122,903

Basic and diluted per share amounts:
Basic and diluted (loss) income attributable to common stockholders per common share		$	(0.19)	$	0.18	$	(1.93)	$	0.54

Basic and diluted weighted average common shares outstanding			214,257		223,638		215,934		225,681

Distributions declared per common share		$	—	$	0.59	$	0.05	$	0.74


CORPORATE FINANCIAL INFORMATION			Page 12

Supplemental Financial InformationFebruary 11, 2021

Reconciliation of Net (Loss) Income to EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest Q4 and FY 2020/2019


	Quarter Ended December 31,					Year Ended December 31,
(In thousands)		2020	****		2019		2020		2019
Net (loss) income	$	(39,380)		$	45,414	$	(410,506)	$	142,793
Operations held for investment:
Depreciation and amortization		32,761			37,264		137,051		147,748
Interest expense		10,108			10,822		53,307		54,223
Income tax provision (benefit), net		15			1,034		6,590		(151)
Gain on sale of assets		(34,109)			(42,935)		(34,298)		(42,935)
Impairment losses - hotel properties		13,478			24,713		144,642		24,713
EBITDAre		(17,127)			76,312		(103,214)		326,391

Operations held for investment:
Amortization of deferred stock compensation		2,067			2,145		9,576		9,313
Amortization of right-of-use assets and liabilities		(337)			(259)		(1,260)		(782)
Finance lease obligation interest - cash ground rent		(351)			(407)		(1,404)		(2,175)
Gain on extinguishment of debt, net		(6,356)			—		(6,146)		—
Property-level severance		3,081			—		11,038		—
Prior year property tax adjustments, net		(490)			(121)		(276)		168
Prior owner contingency funding		—			—		—		(900)
Impairment loss - abandoned development costs		—			—		2,302		—
Noncontrolling interest:
Loss (income) from consolidated joint venture attributable to noncontrolling interest		1,381			(998)		5,817		(7,060)
Depreciation and amortization		(810)			(803)		(3,228)		(2,875)
Interest expense		(224)			(476)		(1,194)		(2,126)
Amortization of right-of-use asset and liability		73			73		290		290
Impairment loss - abandoned development costs		—			—		(449)		—
Adjustments to EBITDAre, net		(1,966)			(846)		15,066		(6,147)
Adjusted EBITDAre, excluding noncontrolling interest	$	(19,093)		$	75,466	$	(88,148)	$	320,244


CORPORATE FINANCIAL INFORMATION			Page 13

Supplemental Financial InformationFebruary 11, 2021

Reconciliation of Net (Loss) Income to FFO and Adjusted FFO Attributable to Common Stockholders Q4 and FY 2020/2019


	Quarter Ended December 31,					Year Ended December 31,
(In thousands, except per share data)		2020	****		2019		2020		2019
Net (loss) income	$	(39,380)		$	45,414	$	(410,506)	$	142,793
Preferred stock dividends		(3,208)			(3,208)		(12,830)		(12,830)
Operations held for investment:
Real estate depreciation and amortization		32,133			36,639		134,555		145,260
Gain on sale of assets		(34,109)			(42,935)		(34,298)		(42,935)
Impairment losses - hotel properties		13,478			24,713		144,642		24,713
Noncontrolling interest:
Loss (income) from consolidated joint venture attributable to noncontrolling interest		1,381			(998)		5,817		(7,060)
Real estate depreciation and amortization		(810)			(803)		(3,228)		(2,875)
FFO attributable to common stockholders		(30,515)			58,822		(175,848)		247,066

Operations held for investment:
Real estate amortization of right-of-use assets and liabilities		78			147		376		590
Noncash interest on derivatives and finance lease obligations, net		(794)			(857)		4,740		6,051
Gain on extinguishment of debt, net		(6,356)			—		(6,146)		—
Property-level severance		3,081			—		11,038		—
Prior year property tax adjustments, net		(490)			(121)		(276)		168
Prior owner contingency funding		—			—		—		(900)
Impairment loss - abandoned development costs		—			—		2,302		—
Noncash income tax provision, net		—			934		7,415		688
Noncontrolling interest:
Real estate amortization of right-of-use asset and liability		73			73		290		290
Noncash interest on derivatives, net		—			—		(27)		—
Impairment loss - abandoned development costs		—			—		(449)		—
Adjustments to FFO attributable to common stockholders, net		(4,408)			176		19,263		6,887
Adjusted FFO attributable to common stockholders	$	(34,923)		$	58,998	$	(156,585)	$	253,953
FFO attributable to common stockholders per diluted share	$	(0.14)		$	0.26	$	(0.81)	$	1.09
Adjusted FFO attributable to common stockholders per diluted share	$	(0.16)		$	0.26	$	(0.73)	$	1.12

Basic weighted average shares outstanding		214,257			223,638		215,934		225,681
Shares associated with unvested restricted stock awards		185			448		—		276
Diluted weighted average shares outstanding		214,442			224,086		215,934		225,957


CORPORATE FINANCIAL INFORMATION			Page 14

Supplemental Financial InformationFebruary 11, 2021

Pro Forma Consolidated Statements of Operations

FY 2020, Q4 2020 – Q1 2020


	Year Ended (1)		Quarter Ended (1)
(Unaudited and in thousands)		December 31,		December 31,	September 30,		June 30,		March 31,
		2020		2020	2020		2020		2020
Revenues
Room	$	151,641	$	21,026	$	14,745	$	2,395	$	113,475
Food and beverage		50,986		4,493		1,979		142		44,372
Other operating		41,183		10,592		10,252		6,144		14,195
Total revenues		243,810		36,111		26,976		8,681		172,042

Operating Expenses
Room		63,081		11,519		9,326		4,995		37,241
Food and beverage		55,961		8,392		5,719		4,379		37,471
Other expenses		179,949		30,293		39,741		35,607		74,308
Corporate overhead		28,149		5,735		6,582		8,438		7,394
Depreciation and amortization		125,865		31,505		31,121		31,363		31,876
Impairment losses		20,987		13,478		—		—		7,509
Total operating expenses		473,992		100,922		92,489		84,782		195,799


Interest and other income		2,836		85		139		306		2,306
Interest expense		(47,228)		(9,291)		(10,644)		(10,979)		(16,314)
Loss on extinguishment of debt		(243)		(33)		(210)		—		—
Loss before income taxes		(274,817)		(74,050)		(76,228)		(86,774)		(37,765)
Income tax (provision) benefit, net		(6,590)		(15)		83		12		(6,670)
Net loss	$	(281,407)	$	(74,065)	$	(76,145)	$	(86,762)	$	(44,435)

Adjusted EBITDAre, excluding noncontrolling interest (2)	$	(66,826)	$	(14,886)	$	(30,656)	$	(39,588)	$	18,304

(1)

Includes the Company's ownership results for the 17 hotels owned by the Company as of December 31, 2020. Excludes the Company's ownership results for the Renaissance Harborplace and the Renaissance Los Angeles Airport due to their sales in July 2020 and December 2020, respectively. In addition, excludes the Company's ownership results for the Hilton Times Square due to the assignment-in-lieu agreement executed in December 2020 between the Company and the hotel's mortgage holder, which transferred the Company's leasehold interest in the hotel to the mortgage holder.

(2)

Adjusted EBITDAre, excluding noncontrolling interest reconciliation for the year ended December 31, 2020 can be found on page 17 in this supplemental package.

---


CORPORATE FINANCIAL INFORMATION			Page 15

Supplemental Financial InformationFebruary 11, 2021

Pro Forma Consolidated Statements of Operation

FY 2019, Q4 2019 – Q1 2019


	Year Ended (1)		Quarter Ended (1)
(Unaudited and in thousands)		December 31,		December 31,	September 30,		June 30,		March 31,
		2019		2019	2019		2019		2019
Revenues
Room	$	662,486	$	160,370	$	171,544	$	179,838	$	150,734
Food and beverage		248,862		60,403		56,052		68,588		63,819
Other operating		68,131		17,555		18,275		16,943		15,358
Total revenues		979,479		238,328		245,871		265,369		229,911

Operating Expenses
Room		170,816		42,414		43,947		43,744		40,711
Food and beverage		166,855		41,382		40,143		43,201		42,129
Other expenses		330,602		82,501		82,373		84,012		81,716
Corporate overhead		30,264		7,275		7,395		8,078		7,516
Depreciation and amortization		125,907		31,780		31,854		31,217		31,056
Total operating expenses		824,444		205,352		205,712		210,252		203,128


Interest and other income		16,557		3,060		3,762		4,811		4,924
Interest expense		(48,469)		(9,547)		(11,755)		(14,323)		(12,844)
Income before income taxes		123,123		26,489		32,166		45,605		18,863
Income tax benefit (provision), net		151		(1,034)		749		(2,676)		3,112
Net income	$	123,274	$	25,455	$	32,915	$	42,929	$	21,975

Adjusted EBITDAre, excluding noncontrolling interest (2)	$	291,894	$	66,968	$	73,500	$	89,511	$	61,915

(1)

Includes the Company's ownership results for the 17 hotels owned by the Company as of December 31, 2020. Excludes the Company's ownership results for the Courtyard by Marriott Los Angeles, the Renaissance Harborplace and the Renaissance Los Angeles Airport due to their sales in October 2019, July 2020 and December 2020, respectively. In addition, excludes the Company's ownership results for the Hilton Times Square due to the assignment-in-lieu agreement executed in December 2020 between the Company and the hotel's mortgage holder, which transferred the Company's leasehold interest in the hotel to the mortgage holder.

(2)

Adjusted EBITDAre, excluding noncontrolling interest reconciliation for the year ended December 31, 2019 as well as the fourth, third, second and first quarters of 2019, can be found on pages 20, 23, 25, 27 and 29, respectively, in this supplemental package.

---


CORPORATE FINANCIAL INFORMATION			Page 16

Supplemental Financial InformationFebruary 11, 2021

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

FY 2020


	Year Ended December 31, 2020
				Disposition:		Disposition:		Disposition:		Repurchase:
				Renaissance		Renaissance		Hilton		Common		Pro
(In thousands)		Actual (1)		Harborplace (2)		Los Angeles Airport (2)		Times Square (2)		Stock (3)		Forma (4)

Net loss	$	(410,506)	$	23,386	$	(29,132)	$	134,845	$	—	$	(281,407)
Operations held for investment:
Depreciation and amortization		137,051		(2,622)		(3,897)		(4,667)		—		125,865
Interest expense		53,307		—		—		(6,079)		—		47,228
Income tax provision, net		6,590		—		—		—		—		6,590
Gain on sale of assets		(34,298)		189		34,109		—		—		—
Impairment losses		144,642		(18,100)		—		(107,857)		—		18,685
EBITDAre		(103,214)		2,853		1,080		16,242		—		(83,039)

Operations held for investment:
Amortization of deferred stock compensation		9,576		—		—		—		—		9,576
Amortization of right-of-use assets and liabilities		(1,260)		—		—		(34)		—		(1,294)
Finance lease obligation interest - cash ground rent		(1,404)		—		—		—		—		(1,404)
Gain on extinguishment of debt, net		(6,146)		—		—		6,389		—		243
Property-level severance		11,038		—		(109)		(5,637)		—		5,292
Prior year property tax adjustments, net		(276)		57		481		—		—		262
Impairment loss - abandoned development costs		2,302		—		—		—		—		2,302
Noncontrolling interest:
Loss from consolidated joint venture attributable to noncontrolling interest		5,817		—		—		—		—		5,817
Depreciation and amortization		(3,228)		—		—		—		—		(3,228)
Interest expense		(1,194)		—		—		—		—		(1,194)
Amortization of right-of-use asset and liability		290		—		—		—		—		290
Impairment loss - abandoned development costs		(449)		—		—		—		—		(449)
Adjustments to EBITDAre, net		15,066		57		372		718		—		16,213

Adjusted EBITDAre, excluding noncontrolling interest	$	(88,148)	$	2,910	$	1,452	$	16,960	$	—	$	(66,826)

*Footnotes on Page 19


CORPORATE FINANCIAL INFORMATION			Page 17

Supplemental Financial InformationFebruary 11, 2021

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

FY 2020


	Year Ended December 31, 2020
				Disposition:		Disposition:		Disposition:		Repurchase:
				Renaissance		Renaissance		Hilton		Common		Pro
(In thousands, except per share amounts)		Actual (1)		Harborplace (2)		Los Angeles Airport (2)		Times Square (2)		Stock (3)		Forma (4)

Net loss	$	(410,506)	$	23,386	$	(29,132)	$	134,845	$	—	$	(281,407)
Preferred stock dividends		(12,830)		—		—		—		—		(12,830)
Operations held for investment:
Real estate depreciation and amortization		134,555		(2,622)		(3,897)		(4,667)		—		123,369
Gain on sale of assets		(34,298)		189		34,109		—		—		—
Impairment losses		144,642		(18,100)		—		(107,857)		—		18,685
Noncontrolling interest:
Loss from consolidated joint venture attributable to noncontrolling interest		5,817		—		—		—		—		5,817
Real estate depreciation and amortization		(3,228)		—		—		—		—		(3,228)
FFO attributable to common stockholders		(175,848)		2,853		1,080		22,321		—		(149,594)

Operations held for investment:
Real estate amortization of right-of-use assets and liabilities		376		—		—		(34)		—		342
Noncash interest on derivatives and finance lease obligation, net		4,740		—		—		—		—		4,740
Gain on extinguishment of debt, net		(6,146)		—		—		6,389		—		243
Property-level severance		11,038		—		(109)		(5,637)		—		5,292
Prior year property tax adjustments, net		(276)		57		481		—		—		262
Impairment loss - abandoned development costs		2,302		—		—		—		—		2,302
Noncash income tax provision, net		7,415		—		—		—		—		7,415
Noncontrolling interest:
Real estate amortization of right-of-use asset and liability		290		—		—		—		—		290
Noncash interest on derivatives, net		(27)		—		—		—		—		(27)
Impairment loss - abandoned development costs		(449)		—		—		—		—		(449)
Adjustments to FFO attributable to common stockholders, net		19,263		57		372		718		—		20,410

Adjusted FFO attributable to common stockholders	$	(156,585)	$	2,910	$	1,452	$	23,039	$	—	$	(129,184)

FFO attributable to common stockholders per diluted share	$	(0.81)									$	(0.70)

Adjusted FFO attributable to common stockholders per diluted share	$	(0.73)									$	(0.60)

Basic weighted average shares outstanding		215,934								(1,742)		214,192
Shares associated with unvested restricted stock awards		—								—		—
Diluted weighted average shares outstanding		215,934								(1,742)		214,192

*Footnotes on Page 19


CORPORATE FINANCIAL INFORMATION			Page 18

Supplemental Financial InformationFebruary 11, 2021

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

FFO and Adjusted FFO Attributable to Common Stockholders

FY 2020 Footnotes

(1)	Actual represents the Company's ownership results for the 17 hotels owned by the Company as of December 31, 2020, as well as results for the Renaissance Harborplace and the Renaissance Los Angeles Airport prior to their sales in July 2020 and December 2020, respectively. In addition, Actual includes the Company's ownership results for the Hilton Times Square prior to the assignment-in-lieu agreement executed in December 2020 between the Company and the hotel's mortgage holder, which transferred the Company's leasehold interest in the hotel to the mortgage holder.
(2)	Disposition: represents the Company's ownership results for the Renaissance Harborplace and the Renaissance Los Angeles Airport prior to their sales in July 2020 and December 2020, respectively. In addition, Disposition includes the Company's ownership results for the Hilton Times Square prior to the assignment-in-lieu agreement executed in December 2020 between the Company and the hotel's mortgage holder, which transferred the Company's leasehold interest in the hotel to the mortgage holder.
---	---
(3)	Repurchase: Common Stock represents the 9,770,081 shares repurchased in the first quarter of 2020.
---	---
(4)	Pro Forma represents the Company's ownership results for the 17 Hotel Portfolio, as well as the common stock repurchases in the first quarter of 2020.
---	---


CORPORATE FINANCIAL INFORMATION			Page 19

Supplemental Financial InformationFebruary 11, 2021

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

FY 2019


	Year Ended December 31, 2019
				Disposition:		Disposition:		Disposition:		Disposition:		Repurchase:
				Courtyard by Marriott		Renaissance		Renaissance		Hilton		Common		Pro
(In thousands)		Actual (1)		Los Angeles (2)		Harborplace (2)		Los Angeles Airport (2)		Times Square (2)		Stock (3)		Forma (4)

Net income	$	142,793	$	(44,979)	$	21,507	$	(3,331)	$	7,284	$	—	$	123,274
Operations held for investment:
Depreciation and amortization		147,748		(760)		(6,719)		(4,205)		(10,157)		—		125,907
Interest expense		54,223		(955)		—		—		(4,799)		—		48,469
Income tax benefit, net		(151)		—		—		—		—		—		(151)
Gain on sale of assets		(42,935)		42,935		—		—		—		—		—
Impairment loss		24,713		—		(24,713)		—		—		—		—
EBITDAre		326,391		(3,759)		(9,925)		(7,536)		(7,672)		—		297,499

Operations held for investment:
Amortization of deferred stock compensation		9,313		—		—		—		—		—		9,313
Amortization of right-of-use assets and liabilities		(782)		—		—		—		(239)		—		(1,021)
Finance lease obligation interest - cash ground rent		(2,175)		772		—		—		—		—		(1,403)
Prior year property tax adjustments, net		168		—		—		9		—		—		177
Prior owner contingency funding		(900)		—		—		—		—		—		(900)
Noncontrolling interest:
Income from consolidated joint venture attributable to noncontrolling interest		(7,060)		—		—		—		—		—		(7,060)
Depreciation and amortization		(2,875)		—		—		—		—		—		(2,875)
Interest expense		(2,126)		—		—		—		—		—		(2,126)
Amortization of right-of-use asset and liability		290		—		—		—		—		—		290
Adjustments to EBITDAre, net		(6,147)		772		—		9		(239)		—		(5,605)

Adjusted EBITDAre, excluding noncontrolling interest	$	320,244	$	(2,987)	$	(9,925)	$	(7,527)	$	(7,911)	$	—	$	291,894

*Footnotes on Page 22


CORPORATE FINANCIAL INFORMATION			Page 20

Supplemental Financial InformationFebruary 11, 2021

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

FY 2019


	Year Ended December 31, 2019
				Disposition:		Disposition:		Disposition:		Disposition:		Repurchase:
				Courtyard by Marriott		Renaissance		Renaissance		Hilton		Common		Pro
(In thousands, except per share amounts)		Actual (1)		Los Angeles (2)		Harborplace (2)		Los Angeles Airport (2)		Times Square (2)		Stock (3)		Forma (4)

Net income	$	142,793	$	(44,979)	$	21,507	$	(3,331)	$	7,284	$	—	$	123,274
Preferred stock dividends		(12,830)		—		—		—		—		—		(12,830)
Operations held for investment:
Real estate depreciation and amortization		145,260		(760)		(6,719)		(4,205)		(10,157)		—		123,419
Gain on sale of assets		(42,935)		42,935		—		—		—		—		—
Impairment loss		24,713		—		(24,713)		—		—		—		—
Noncontrolling interest:
Income from consolidated joint venture attributable to noncontrolling interest		(7,060)		—		—		—		—		—		(7,060)
Real estate depreciation and amortization		(2,875)		—		—		—		—		—		(2,875)
FFO attributable to common stockholders		247,066		(2,804)		(9,925)		(7,536)		(2,873)		—		223,928

Operations held for investment:
Real estate amortization of right-of-use assets and liabilities		590		—		—		—		(239)		—		351
Noncash interest on derivatives and finance lease obligations, net		6,051		(183)		—		—		—		—		5,868
Prior year property tax adjustments, net		168		—		—		9		—		—		177
Prior owner contingency funding		(900)		—		—		—		—		—		(900)
Noncash income tax provision, net		688		—		—		—		—		—		688
Noncontrolling interest:
Real estate amortization of right-of-use asset and liability		290		—		—		—		—		—		290
Adjustments to FFO attributable to common stockholders, net		6,887		(183)		—		9		(239)		—		6,474

Adjusted FFO attributable to common stockholders	$	253,953	$	(2,987)	$	(9,925)	$	(7,527)	$	(3,112)	$	—	$	230,402

FFO attributable to common stockholders per diluted share	$	1.09											$	1.05

Adjusted FFO attributable to common stockholders per diluted share	$	1.12											$	1.08

Basic weighted average shares outstanding		225,681										(11,868)		213,813
Shares associated with unvested restricted stock awards		276										—		276
Diluted weighted average shares outstanding		225,957										(11,868)		214,089

*Footnotes on Page 22


CORPORATE FINANCIAL INFORMATION			Page 21

Supplemental Financial InformationFebruary 11, 2021

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

FFO and Adjusted FFO Attributable to Common Stockholders

FY 2019 Footnotes

(1)	Actual represents the Company's ownership results for the 20 hotels owned by the Company as of December 31, 2019, as well as results for the Courtyard by Marriott Los Angeles prior to its sale in October 2019.
(2)	Disposition: represents the Company's ownership results for the Courtyard by Marriott Los Angeles, the Renaissance Harborplace and the Renaissance Los Angeles Airport prior to their sales in October 2019, July 2020 and December 2020, respectively. In addition, Disposition includes the Company's ownership results for the Hilton Times Square prior to the assignment-in-lieu agreement executed in December 2020 between the Company and the hotel's mortgage holder, which transferred the Company's leasehold interest in the hotel to the mortgage holder.
---	---
(3)	Repurchase: Common Stock represents the 3,783,936 shares repurchased in the second, third and fourth quarters of 2019, and the 9,770,081 shares repurchased in the first quarter of 2020.
---	---
(4)	Pro Forma represents the Company's ownership results for the 17 Hotel Portfolio, as well as the common stock repurchases in 2019 and 2020.
---	---


CORPORATE FINANCIAL INFORMATION			Page 22

Supplemental Financial InformationFebruary 11, 2021

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

Q4 2019


	Quarter Ended December 31, 2019
				Disposition:		Disposition:		Disposition:		Disposition:		Repurchase:
				Courtyard by Marriott		Renaissance		Renaissance		Hilton		Common		Pro
(In thousands)		Actual (1)		Los Angeles (2)		Harborplace (2)		Los Angeles Airport (2)		Times Square (2)		Stock (3)		Forma (4)

Net income	$	45,414	$	(43,081)	$	24,020	$	(790)	$	(108)	$	—	$	25,455
Operations held for investment:
Depreciation and amortization		37,264		—		(1,892)		(1,056)		(2,536)		—		31,780
Interest expense		10,822		(70)		—		—		(1,205)		—		9,547
Income tax provision, net		1,034		—		—		—		—		—		1,034
Gain on sale of assets		(42,935)		42,935		—		—		—		—		—
Impairment loss		24,713		—		(24,713)		—		—		—		—
EBITDAre		76,312		(216)		(2,585)		(1,846)		(3,849)		—		67,816

Operations held for investment:
Amortization of deferred stock compensation		2,145		—		—		—		—		—		2,145
Amortization of right-of-use assets and liabilities		(259)		—		—		—		(57)		—		(316)
Finance lease obligation interest - cash ground rent		(407)		55		—		—		—		—		(352)
Prior year property tax adjustments, net		(121)		—		—		—		—		—		(121)
Noncontrolling interest:
Income from consolidated joint venture attributable to noncontrolling interest		(998)		—		—		—		—		—		(998)
Depreciation and amortization		(803)		—		—		—		—		—		(803)
Interest expense		(476)		—		—		—		—		—		(476)
Amortization of right-of-use asset and liability		73		—		—		—		—		—		73
Adjustments to EBITDAre, net		(846)		55		—		—		(57)		—		(848)

Adjusted EBITDAre, excluding noncontrolling interest	$	75,466	$	(161)	$	(2,585)	$	(1,846)	$	(3,906)	$	—	$	66,968

*Footnotes on Page 31


CORPORATE FINANCIAL INFORMATION			Page 23

Supplemental Financial InformationFebruary 11, 2021

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

Q4 2019


	Quarter Ended December 31, 2019
				Disposition:		Disposition:		Disposition:		Disposition:		Repurchase:
				Courtyard by Marriott		Renaissance		Renaissance		Hilton		Common		Pro
(In thousands, except per share amounts)		Actual (1)		Los Angeles (2)		Harborplace (2)		Los Angeles Airport (2)		Times Square (2)		Stock (3)		Forma (4)

Net income	$	45,414	$	(43,081)	$	24,020	$	(790)	$	(108)	$	—	$	25,455
Preferred stock dividends		(3,208)		—		—		—		—		—		(3,208)
Operations held for investment:
Real estate depreciation and amortization		36,639		—		(1,892)		(1,056)		(2,536)		—		31,155
Gain on sale of assets		(42,935)		42,935		—		—		—		—		—
Impairment loss		24,713		—		(24,713)		—		—		—		—
Noncontrolling interest:
Income from consolidated joint venture attributable to noncontrolling interest		(998)		—		—		—		—		—		(998)
Real estate depreciation and amortization		(803)		—		—		—		—		—		(803)
FFO attributable to common stockholders		58,822		(146)		(2,585)		(1,846)		(2,644)		—		51,601

Operations held for investment:
Real estate amortization of right-of-use assets and liabilities		147		—		—		—		(57)		—		90
Noncash interest on derivatives and finance lease obligations, net		(857)		(15)		—		—		—		—		(872)
Prior year property tax adjustments, net		(121)		—		—		—		—		—		(121)
Noncash income tax provision, net		934		—		—		—		—		—		934
Noncontrolling interest:
Real estate amortization of right-of-use asset and liability		73		—		—		—		—		—		73
Adjustments to FFO attributable to common stockholders, net		176		(15)		—		—		(57)		—		104

Adjusted FFO attributable to common stockholders	$	58,998	$	(161)	$	(2,585)	$	(1,846)	$	(2,701)	$	—	$	51,705

FFO attributable to common stockholders per diluted share	$	0.26											$	0.24

Adjusted FFO attributable to common stockholders per diluted share	$	0.26											$	0.24

Basic weighted average shares outstanding		223,638										(9,771)		213,867
Shares associated with unvested restricted stock awards		448										—		448
Diluted weighted average shares outstanding		224,086										(9,771)		214,315

*Footnotes on Page 31


CORPORATE FINANCIAL INFORMATION			Page 24

Supplemental Financial InformationFebruary 11, 2021

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

Q3 2019


	Quarter Ended September 30, 2019
				Disposition:		Disposition:		Disposition:		Disposition:		Repurchase:
				Courtyard by Marriott		Renaissance		Renaissance		Hilton		Common		Pro
(In thousands)		Actual (1)		Los Angeles (2)		Harborplace (2)		Los Angeles Airport (2)		Times Square (2)		Stock (3)		Forma (4)

Net income	$	33,545	$	(674)	$	(1,233)	$	(933)	$	2,210	$	—	$	32,915
Operations held for investment:
Depreciation and amortization		37,573		(254)		(1,877)		(1,054)		(2,534)		—		31,854
Interest expense		13,259		(296)		—		—		(1,208)		—		11,755
Income tax benefit, net		(749)		—		—		—		—		—		(749)
EBITDAre		83,628		(1,224)		(3,110)		(1,987)		(1,532)		—		75,775

Operations held for investment:
Amortization of deferred stock compensation		2,146		—		—		—		—		—		2,146
Amortization of right-of-use assets and liabilities		(253)		—		—		—		(57)		—		(310)
Finance lease obligation interest - cash ground rent		(589)		239		—		—		—		—		(350)
Prior year property tax adjustments, net		(9)		—		—		9		—		—		—
Noncontrolling interest:
Income from consolidated joint venture attributable to noncontrolling interest		(2,508)		—		—		—		—		—		(2,508)
Depreciation and amortization		(793)		—		—		—		—		—		(793)
Interest expense		(532)		—		—		—		—		—		(532)
Amortization of right-of-use asset and liability		72		—		—		—		—		—		72
Adjustments to EBITDAre, net		(2,466)		239		—		9		(57)		—		(2,275)

Adjusted EBITDAre, excluding noncontrolling interest	$	81,162	$	(985)	$	(3,110)	$	(1,978)	$	(1,589)	$	—	$	73,500

*Footnotes on Page 31


CORPORATE FINANCIAL INFORMATION			Page 25

Supplemental Financial InformationFebruary 11, 2021

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

Q3 2019


	Quarter Ended September 30, 2019
				Disposition:		Disposition:		Disposition:		Disposition:		Repurchase:
				Courtyard by Marriott		Renaissance		Renaissance		Hilton		Common		Pro
(In thousands, except per share amounts)		Actual (1)		Los Angeles (2)		Harborplace (2)		Los Angeles Airport (2)		Times Square (2)		Stock (3)		Forma (4)

Net income	$	33,545	$	(674)	$	(1,233)	$	(933)	$	2,210	$	—	$	32,915
Preferred stock dividends		(3,208)		—		—		—		—		—		(3,208)
Operations held for investment:
Real estate depreciation and amortization		36,951		(254)		(1,877)		(1,054)		(2,534)		—		31,232
Noncontrolling interest:
Income from consolidated joint venture attributable to noncontrolling interest		(2,508)		—		—		—		—		—		(2,508)
Real estate depreciation and amortization		(793)		—		—		—		—		—		(793)
FFO attributable to common stockholders		63,987		(928)		(3,110)		(1,987)		(324)		—		57,638

Operations held for investment:
Real estate amortization of right-of-use assets and liabilities		146		—		—		—		(57)		—		89
Noncash interest on derivatives and finance lease obligations, net		1,155		(57)		—		—		—		—		1,098
Prior year property tax adjustments, net		(9)		—		—		9		—		—		—
Noncash income tax provision, net		390		—		—		—		—		—		390
Noncontrolling interest:
Real estate amortization of right-of-use asset and liability		72		—		—		—		—		—		72
Adjustments to FFO attributable to common stockholders, net		1,754		(57)		—		9		(57)		—		1,649

Adjusted FFO attributable to common stockholders	$	65,741	$	(985)	$	(3,110)	$	(1,978)	$	(381)	$	—	$	59,287

FFO attributable to common stockholders per diluted share	$	0.28											$	0.27

Adjusted FFO attributable to common stockholders per diluted share	$	0.29											$	0.28

Basic weighted average shares outstanding		224,530										(10,663)		213,867
Shares associated with unvested restricted stock awards		253										—		253
Diluted weighted average shares outstanding		224,783										(10,663)		214,120

*Footnotes on Page 31


CORPORATE FINANCIAL INFORMATION			Page 26

Supplemental Financial InformationFebruary 11, 2021

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

Q2 2019


	Quarter Ended June 30, 2019
				Disposition:		Disposition:		Disposition:		Disposition:		Repurchase:
				Courtyard by Marriott		Renaissance		Renaissance		Hilton		Common		Pro
(In thousands)		Actual (1)		Los Angeles (2)		Harborplace (2)		Los Angeles Airport (2)		Times Square (2)		Stock (3)		Forma (4)

Net income	$	45,918	$	(657)	$	(2,413)	$	(755)	$	836	$	—	$	42,929
Operations held for investment:
Depreciation and amortization		36,524		(253)		(1,460)		(1,052)		(2,542)		—		31,217
Interest expense		15,816		(295)		—		—		(1,198)		—		14,323
Income tax provision, net		2,676		—		—		—		—		—		2,676
EBITDAre		100,934		(1,205)		(3,873)		(1,807)		(2,904)		—		91,145

Operations held for investment:
Amortization of deferred stock compensation		2,900		—		—		—		—		—		2,900
Amortization of right-of-use assets and liabilities		(251)		—		—		—		(61)		—		(312)
Finance lease obligation interest - cash ground rent		(590)		239		—		—		—		—		(351)
Prior year property tax adjustments, net		109		—		—		—		—		—		109
Prior owner contingency funding		(900)		—		—		—		—		—		(900)
Noncontrolling interest:
Income from consolidated joint venture attributable to noncontrolling interest		(1,955)		—		—		—		—		—		(1,955)
Depreciation and amortization		(640)		—		—		—		—		—		(640)
Interest expense		(558)		—		—		—		—		—		(558)
Amortization of right-of-use asset and liability		73		—		—		—		—		—		73
Adjustments to EBITDAre, net		(1,812)		239		—		—		(61)		—		(1,634)

Adjusted EBITDAre, excluding noncontrolling interest	$	99,122	$	(966)	$	(3,873)	$	(1,807)	$	(2,965)	$	—	$	89,511

*Footnotes on Page 31


CORPORATE FINANCIAL INFORMATION			Page 27

Supplemental Financial InformationFebruary 11, 2021

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

Q2 2019


	Quarter Ended June 30, 2019
				Disposition:		Disposition:		Disposition:		Disposition:		Repurchase:
				Courtyard by Marriott		Renaissance		Renaissance		Hilton		Common		Pro
(In thousands, except per share amounts)		Actual (1)		Los Angeles (2)		Harborplace (2)		Los Angeles Airport (2)		Times Square (2)		Stock (3)		Forma (4)

Net income	$	45,918	$	(657)	$	(2,413)	$	(755)	$	836	$	—	$	42,929
Preferred stock dividends		(3,207)		—		—		—		—		—		(3,207)
Operations held for investment:
Real estate depreciation and amortization		35,900		(253)		(1,460)		(1,052)		(2,542)		—		30,593
Noncontrolling interest:
Income from consolidated joint venture attributable to noncontrolling interest		(1,955)		—		—		—		—		—		(1,955)
Real estate depreciation and amortization		(640)		—		—		—		—		—		(640)
FFO attributable to common stockholders		76,016		(910)		(3,873)		(1,807)		(1,706)		—		67,720

Operations held for investment:
Real estate amortization of right-of-use assets and liabilities		146		—		—		—		(61)		—		85
Noncash interest on derivatives and finance lease obligations, net		3,634		(56)		—		—		—		—		3,578
Prior year property tax adjustments, net		109		—		—		—		—		—		109
Prior owner contingency funding		(900)		—		—		—		—		—		(900)
Noncash income tax provision, net		2,648		—		—		—		—		—		2,648
Noncontrolling interest:
Amortization of right-of-use asset and liability		73		—		—		—		—		—		73
Adjustments to FFO attributable to common stockholders, net		5,710		(56)		—		—		(61)		—		5,593

Adjusted FFO attributable to common stockholders	$	81,726	$	(966)	$	(3,873)	$	(1,807)	$	(1,767)	$	—	$	73,313

FFO attributable to common stockholders per diluted share	$	0.33											$	0.32

Adjusted FFO attributable to common stockholders per diluted share	$	0.36											$	0.34

Basic weighted average shares outstanding		227,389										(13,540)		213,849
Shares associated with unvested restricted stock awards		145										—		145
Diluted weighted average shares outstanding		227,534										(13,540)		213,994

*Footnotes on Page 31


CORPORATE FINANCIAL INFORMATION			Page 28

Supplemental Financial InformationFebruary 11, 2021

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

Q1 2019


	Quarter Ended March 31, 2019
				Disposition:		Disposition:		Disposition:		Disposition:		Repurchase:
				Courtyard by Marriott		Renaissance		Renaissance		Hilton		Common		Pro
(In thousands)		Actual (1)		Los Angeles (2)		Harborplace (2)		Los Angeles Airport (2)		Times Square (2)		Stock (3)		Forma (4)

Net income	$	17,916	$	(567)	$	1,133	$	(853)	$	4,346	$	—	$	21,975
Operations held for investment:
Depreciation and amortization		36,387		(253)		(1,490)		(1,043)		(2,545)		—		31,056
Interest expense		14,326		(294)		—		—		(1,188)		—		12,844
Income tax benefit, net		(3,112)		—		—		—		—		—		(3,112)
EBITDAre		65,517		(1,114)		(357)		(1,896)		613		—		62,763

Operations held for investment:
Amortization of deferred stock compensation		2,122		—		—		—		—		—		2,122
Amortization of right-of-use assets and liabilities		(19)		—		—		—		(64)		—		(83)
Finance lease obligation interest - cash ground rent		(589)		239		—		—		—		—		(350)
Prior year property tax adjustments, net		189		—		—		—		—		—		189
Noncontrolling interest:
Income from consolidated joint venture attributable to noncontrolling interest		(1,599)		—		—		—		—		—		(1,599)
Depreciation and amortization		(639)		—		—		—		—		—		(639)
Interest expense		(560)		—		—		—		—		—		(560)
Amortization of right-of-use asset and liability		72		—		—		—		—		—		72
Adjustments to EBITDAre, net		(1,023)		239		—		—		(64)		—		(848)

Adjusted EBITDAre, excluding noncontrolling interest	$	64,494	$	(875)	$	(357)	$	(1,896)	$	549	$	—	$	61,915

*Footnotes on Page 31

<br><br>
CORPORATE FINANCIAL INFORMATION			Page 29

Supplemental Financial InformationFebruary 11, 2021

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

Q1 2019


	Quarter Ended March 31, 2019
				Disposition:		Disposition:		Disposition:		Disposition:		Repurchase:
				Courtyard by Marriott		Renaissance		Renaissance		Hilton		Common		Pro
(In thousands, except per share amounts)		Actual (1)		Los Angeles (2)		Harborplace (2)		Los Angeles Airport (2)		Times Square (2)		Stock (3)		Forma (4)

Net income	$	17,916	$	(567)	$	1,133	$	(853)	$	4,346	$	—	$	21,975
Preferred stock dividends		(3,207)		—		—		—		—		—		(3,207)
Operations held for investment:
Real estate depreciation and amortization		35,770		(253)		(1,490)		(1,043)		(2,545)		—		30,439
Noncontrolling interest:
Income from consolidated joint venture attributable to noncontrolling interest		(1,599)		—		—		—		—		—		(1,599)
Real estate depreciation and amortization		(639)		—		—		—		—		—		(639)
FFO attributable to common stockholders		48,241		(820)		(357)		(1,896)		1,801		—		46,969

Operations held for investment:
Real estate amortization of right-of-use assets and liabilities		151		—		—		—		(64)		—		87
Noncash interest on derivatives and finance lease obligations, net		2,119		(55)		—		—		—		—		2,064
Prior year property tax adjustments, net		189		—		—		—		—		—		189
Noncash income tax benefit		(3,284)		—		—		—		—		—		(3,284)
Noncontrolling interest:
Real estate amortization of right-of-use asset and liability		72		—		—		—		—		—		72
Adjustments to FFO attributable to common stockholders, net		(753)		(55)		—		—		(64)		—		(872)

Adjusted FFO attributable to common stockholders	$	47,488	$	(875)	$	(357)	$	(1,896)	$	1,737	$	—	$	46,097

FFO attributable to common stockholders per diluted share	$	0.21											$	0.22

Adjusted FFO attributable to common stockholders per diluted share	$	0.21											$	0.22

Basic weighted average shares outstanding		227,219										(13,554)		213,665
Shares associated with unvested restricted stock awards		260										—		260
Diluted weighted average shares outstanding		227,479										(13,554)		213,925

*Footnotes on Page 31


CORPORATE FINANCIAL INFORMATION			Page 30

Supplemental Financial InformationFebruary 11, 2021

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

FFO and Adjusted FFO Attributable to Common Stockholders

Q4, Q3, Q2 and Q1 2019 Footnotes

(1)	Actual for the fourth quarter of 2019 represents the Company’s ownership results for the 20 hotels owned by the Company as of December 31, 2019, as well as results for the Courtyard by Marriott Los Angeles prior to its sale in October 2019. Actual for the third, second and first quarters of 2019 represents the Company's ownership results for the 21 hotels owned by the Company as of September 30, 2019, June 30, 2019 and March 31, 2019.
(2)	Disposition: represents the Company's ownership results for the Courtyard by Marriott Los Angeles, the Renaissance Harborplace and the Renaissance Los Angeles Airport prior to their sales in October 2019, July 2020 and December 2020, respectively. In addition, Disposition includes the Company's ownership results for the Hilton Times Square prior to the assignment-in-lieu agreement executed in December 2020 between the Company and the hotel's mortgage holder, which transferred the Company's leasehold interest in the hotel to the mortgage holder.
---	---
(3)	Repurchase: Common Stock represents the 3,783,936 shares repurchased in the second, third and fourth quarters of 2019, and the 9,770,081 shares repurchased in the first quarter of 2020.
---	---
(4)	Pro Forma represents the Company's ownership results for the 17 Hotel Portfolio, as well as the common stock repurchases in 2019 and 2020.
---	---


CORPORATE FINANCIAL INFORMATION			Page 31


	Supplemental Financial InformationFebruary 11, 2021

CAPITALIZATION


CAPITALIZATION			Page 32

Supplemental Financial InformationFebruary 11, 2021

Comparative Capitalization Q4 2020 – Q4 2019


	December 31,			September 30,			June 30,			March 31,			December 31,
(In thousands, except per share data)	2020		****	2020		****	2020		****	2020		****	2019

Common Share Price & Dividends
At the end of the quarter	$	11.33		$	7.94		$	8.15		$	8.71		$	13.92
High during quarter ended	$	11.42		$	8.70		$	10.65		$	13.81		$	14.41
Low during quarter ended	$	7.27		$	7.27		$	7.04		$	6.99		$	13.25
Common dividends per share	$	—		$	—		$	—		$	0.05		$	0.59

Common Shares & Units
Common shares outstanding		215,593			215,636			215,636			215,541			224,855
Units outstanding		—			—			—			—			—
Total common shares and units outstanding		215,593			215,636			215,636			215,541			224,855

Capitalization ****
Market value of common equity	$	2,442,673		$	1,712,146		$	1,757,430		$	1,877,363		$	3,129,982
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		747,945			934,673			1,021,247			1,272,965			974,863
Consolidated total capitalization		3,380,618			2,836,819			2,968,677			3,340,328			4,294,845

Noncontrolling interest in consolidated debt		(55,000)			(55,000)			(55,000)			(55,000)			(55,000)
Pro rata total capitalization	$	3,325,618		$	2,781,819		$	2,913,677		$	3,285,328		$	4,239,845

Consolidated debt to consolidated total capitalization		22.1	%		32.9	%		34.4	%		38.1	%		22.7	%
Pro rata debt to pro rata total capitalization		20.8	%		31.6	%		33.2	%		37.1	%		21.7	%
Consolidated debt and preferred equity to consolidated total capitalization		27.7	%		39.6	%		40.8	%		43.8	%		27.1	%
Pro rata debt and preferred equity to pro rata total capitalization		26.5	%		38.5	%		39.7	%		42.9	%		26.2	%


CAPITALIZATION			Page 33

Supplemental Financial InformationFebruary 11, 2021

Consolidated Debt Summary Schedule


(In thousands)				Interest Rate /		Maturity		December 31, 2020			Balance At
Debt	****	Collateral	****	Spread	****	Date		Balance			Maturity

Fixed Rate Debt
Term Loan Facility (1)		Unsecured		3.94%		09/03/2022	$	85,000		$	85,000
Term Loan Facility (1)		Unsecured		4.20%		01/31/2023		100,000			100,000
Secured Mortgage Debt		JW Marriott New Orleans		4.15%		12/11/2024		80,055			72,071
Secured Mortgage Debt		Embassy Suites La Jolla		4.12%		01/06/2025		57,890			51,987
Series A Senior Notes (2)		Unsecured		5.94%		01/10/2026		90,000			90,000
Series B Senior Notes (2)		Unsecured		6.04%		01/10/2028		115,000			115,000
Total Fixed Rate Debt								527,945			514,058
Variable Rate Debt
Secured Mortgage Debt (3)		Hilton San Diego Bayfront		1.19%		12/09/2023		220,000			220,000
Credit Facility (1)		Unsecured		L + 1.40% - 2.40%		04/14/2023		—			—
Total Variable Rate Debt								220,000			220,000

TOTAL CONSOLIDATED DEBT							$	747,945		$	734,058

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								70.6	%
% Floating Rate Debt								29.4	%
Average Interest Rate (4)								3.77	%
Weighted Average Maturity of Debt (3)								3.8 years

(1)	In July and December 2020, the Company executed amendments to the agreement governing its revolving credit facility and term loan facilities, providing covenant relief through the first quarter of 2022, with the first quarterly covenant test as of the period ended March 31, 2022. Under the terms of the July 2020 amendment, a 25-basis point LIBOR floor was added for the remaining term of the facilities and the applicable LIBOR margin was increased to 225 basis points for the revolving credit facility and 220 basis points for the term loan facilities, the high points of the pricing grid. The December 2020 amendment fixed the applicable LIBOR margin at 240 basis points for the revolving credit facility and 235 basis points for the term loan facilities. After the covenant relief period, the LIBOR margin will revert back to the original terms of the pricing grid with a range of 140 to 225 basis points for the revolving credit facility and 135 to 220 basis points for the term loan facilities, depending on the Company’s leverage ratios. The interest rates presented reflect the terms of the amended agreements and the effects of the Company’s interest rate derivative agreements.
(2)	In July and December 2020, the Company executed amendments to the agreement governing the Senior Notes, providing covenant relief through the first quarter of 2022, with the first quarterly covenant test as of the period ended March 31, 2022. The July and December 2020 amendments increased the annual interest rates on the Senior Notes by 1.0% and an additional 0.25%, respectively. After the covenant relief period, the interest rates on the Senior Notes will decrease by 0.25% until the Company’s leverage ratio is below 5.0x. The interest rates presented reflect the terms of the amended agreements. In September 2020, the Company repaid $30.0 million and $5.0 million of its Series A and Series B Senior Notes, respectively, at par.
---	---
(3)	In December 2020, the Company exercised its first option to extend the maturity date of the $220.0 million loan secured by the Hilton San Diego Bayfront from December 2020 to December 2021. Two additional one-year options to extend remain, which the Company also intends to exercise, extending the maturity date to December 2023. By extending this loan, the Company's weighted average maturity of debt increases from 3.2 years to 3.8 years.
---	---
(4)	Average Interest Rate is calculated based on rates at December 31, 2020, and includes the effect of the Company's interest rate derivative agreements.
---	---


CAPITALIZATION			Page 34

Supplemental Financial InformationFebruary 11, 2021

Consolidated Amortization and Debt Maturity Schedule

As of December 31, 2020

(1)	In December 2020, the Company exercised its first option to extend the maturity date of the $220.0 million loan secured by the Hilton San Diego Bayfront from December 2020 to December 2021. Two additional one-year options to extend remain, which the Company also intends to exercise, extending the maturity date to December 2023.
(2)	Percent of Current Total Capitalization is calculated by dividing the sum of scheduled principal amortization and maturity payments by the December 31, 2020 consolidated total capitalization as presented on page 33.
---	---


CAPITALIZATION			Page 35

Supplemental Financial InformationFebruary 11, 2021

PROPERTY-LEVEL DATA


PROPERTY-LEVEL DATA			Page 36

Supplemental Financial InformationFebruary 11, 2021

Hotel Information as of February 11, 2021


Hotel		****	Location	****	Brand	****	Number ofRooms	****	% of TotalRooms	****	Interest	Open / Suspension Date (1)	****	Resumption<br><br>Date (1)	****	Year Acquired

1	Hilton San Diego Bayfront (2) (3)		California		Hilton		1,190		13.20%		Leasehold	March 23, 2020		August 11, 2020		2011
2	Boston Park Plaza		Massachusetts		Independent		1,060		11.76%		Fee Simple	Open		N/A		2013
3	Hyatt Regency San Francisco		California		Hyatt		821		9.11%		Fee Simple	March 22, 2020		October 1, 2020		2013
4	Renaissance Washington DC		Washington DC		Marriott		807		8.95%		Fee Simple	March 26, 2020		August 24, 2020		2005
5	Renaissance Orlando at SeaWorld®		Florida		Marriott		781		8.66%		Fee Simple	March 20, 2020		October 1, 2020		2005
6	Wailea Beach Resort		Hawaii		Marriott		547		6.07%		Fee Simple	March 25, 2020		November 1, 2020		2014
7	JW Marriott New Orleans (4)		Louisiana		Marriott		501		5.56%		Fee Simple	March 28, 2020		July 14, 2020		2011
8	Hyatt Centric Chicago Magnificent Mile (3)		Illinois		Hyatt		419		4.65%		Leasehold	April 6, 2020		July 13, 2020		2012
9	Marriott Boston Long Wharf		Massachusetts		Marriott		415		4.60%		Fee Simple	March 12, 2020		July 7, 2020		2007
10	Renaissance Long Beach		California		Marriott		374		4.15%		Fee Simple	Open		N/A		2005
11	Embassy Suites Chicago		Illinois		Hilton		368		4.08%		Fee Simple	April 1, 2020		July 1, 2020		2002
12	Hilton Garden Inn Chicago Downtown/Magnificent Mile		Illinois		Hilton		361		4.00%		Fee Simple	March 27, 2020				2012
13	Renaissance Westchester		New York		Marriott		348		3.86%		Fee Simple	April 4, 2020				2010
14	Embassy Suites La Jolla		California		Hilton		340		3.77%		Fee Simple	Open		N/A		2006
15	The Bidwell Marriott Portland		Oregon		Marriott		258		2.86%		Fee Simple	March 27, 2020		October 5, 2020		2000
16	Hilton New Orleans St. Charles		Louisiana		Hilton		252		2.79%		Fee Simple	March 28, 2020		July 13, 2020		2013
17	Oceans Edge Resort & Marina		Florida		Independent		175		1.94%		Fee Simple	March 22, 2020		June 4, 2020		2017

	Total 17 Hotel Portfolio						9,017		100%

(1)	In March 2020, the COVID-19 pandemic was declared a National Public Health Emergency, which led to material group cancellations, corporate and government travel restrictions and an unprecedented decline in hotel demand. As a result of these cancellations, restrictions and the health concerns related to COVID-19, the Company determined that it was in the best interest of its hotel employees and the communities in which its hotels operate to temporarily suspend operations at the majority of its hotels. As of the date of this release, operations continue to be temporarily suspended at two of the Company’s hotels, and 15 hotels are operating under a significantly reduced capacity.
(2)	The Company owns 75% of the joint venture that owns the Hilton San Diego Bayfront.
---	---
(3)	Assuming the full exercise of all lease extensions, the ground lease at the Hilton San Diego Bayfront and the building lease Hyatt Centric Chicago Magnificent Mile mature in 2071 and 2097, respectively.
---	---
(4)	Hotel is subject to a municipal airspace lease that matures in 2044 and applies only to certain balcony space fronting Canal Street that is not integral to the hotel’s operations.
---	---


PROPERTY-LEVEL DATA			Page 37

Supplemental Financial InformationFebruary 11, 2021

PROPERTY-LEVEL OPERATING STATISTICS


PROPERTY-LEVEL OPERATING STATISTICS			Page 38

Supplemental Financial InformationFebruary 11, 2021

Property-Level Operating Statistics

October 2020/2019


		ADR						Occupancy						RevPAR
	Hotels sorted by number of rooms	October						October					October
		2020		****	2019	****	Change	2020	****	2019	****	Change	2020		****	2019		****	Change
1	Hilton San Diego Bayfront	$	162.23	$	259.55		(37.5)%	21.0%		83.9%		(75.0)%	$	34.07		$	217.76		(84.4)%
2	Boston Park Plaza	$	139.90	$	254.87		(45.1)%	22.9%		98.0%		(76.6)%	$	32.04		$	249.77		(87.2)%
3	Hyatt Regency San Francisco	$	170.26	$	350.80		(51.5)%	15.1%		96.4%		(84.3)%	$	25.71		$	338.17		(92.4)%
4	Renaissance Washington DC	$	117.29	$	281.89		(58.4)%	4.8%		87.5%		(94.5)%	$	5.63		$	246.65		(97.7)%
5	Renaissance Orlando at SeaWorld®	$	111.81	$	179.07		(37.6)%	7.0%		82.8%		(91.5)%	$	7.83		$	148.27		(94.7)%
6	JW Marriott New Orleans	$	135.22	$	230.90		(41.4)%	28.2%		90.7%		(68.9)%	$	38.13		$	209.43		(81.8)%
7	Hyatt Centric Chicago Magnificent Mile	$	169.52	$	236.49		(28.3)%	7.1%		89.9%		(92.1)%	$	12.04		$	212.60		(94.3)%
8	Marriott Boston Long Wharf	$	230.98	$	390.87		(40.9)%	18.7%		92.3%		(79.7)%	$	43.19		$	360.77		(88.0)%
9	Renaissance Long Beach	$	142.93	$	192.85		(25.9)%	28.8%		83.2%		(65.4)%	$	41.16		$	160.45		(74.3)%
10	Embassy Suites Chicago	$	134.20	$	240.59		(44.2)%	12.1%		94.8%		(87.2)%	$	16.24		$	228.08		(92.9)%
11	Embassy Suites La Jolla	$	120.39	$	192.10		(37.3)%	61.7%		82.3%		(25.0)%	$	74.28		$	158.10		(53.0)%
12	Hilton New Orleans St. Charles	$	117.89	$	183.52		(35.8)%	29.0%		74.0%		(60.8)%	$	34.19		$	135.80		(74.8)%
13	Oceans Edge Resort & Marina	$	198.95	$	180.00		10.5%	40.5%		80.5%		(49.7)%	$	80.57		$	144.90		(44.4)%

	13 Hotels Open for the Entire Fourth Quarter of 2020	$	148.63	$	257.63		(42.3)%	19.5%		88.8%		(78.0)%	$	28.98		$	228.78		(87.3)%

14	Wailea Beach Resort	$	—	$	429.32		(100.0)%	0.0%		90.9%		(100.0)%	$	—		$	390.25		(100.0)%
15	The Bidwell Marriott Portland	$	140.31	$	198.56		(29.3)%	2.7%		84.4%		(96.8)%	$	3.79		$	167.58		(97.7)%

	2 Hotels Open During a Portion of the Fourth Quarter of 2020	$	140.31	$	360.73		(61.1)%	0.8%		88.8%		(99.1)%	$	1.12		$	320.33		(99.7)%

	2 Hotels with Suspended Operations During All of the Fourth Quarter of 2020	$	—	$	199.69		(100.0)%	0.0%		84.0%		(100.0)%	$	—		$	167.74		(100.0)%

	17 Hotel Portfolio (1)	$	148.51	$	262.46		(43.4)%	16.3%		88.4%		(81.6)%	$	24.21		$	232.01		(89.6)%

	Add: Sold/Disposed Hotels (2)
	Renaissance Los Angeles Airport	$	109.91	$	151.27		(27.3)%	26.5%		88.2%		(70.0)%	$	29.13		$	133.42		(78.2)%
	Hilton Times Square	$	—	$	315.27		(100.0)%	0.0%		99.4%		(100.0)%	$	—		$	313.38		(100.0)%

	Actual Portfolio (3)	$	145.32	$	259.74		(44.1)%	16.1%		88.9%		(81.9)%	$	23.40		$	230.91		(89.9)%

*Footnotes on page 44


PROPERTY-LEVEL OPERATING STATISTICS			Page 39

Supplemental Financial InformationFebruary 11, 2021

Property-Level Operating Statistics

November 2020/2019


		ADR						Occupancy						RevPAR
	Hotels sorted by number of rooms	November						November					November
		2020		****	2019	****	Change	2020	****	2019	****	Change	2020		****	2019		****	Change
1	Hilton San Diego Bayfront	$	103.39	$	218.55		(52.7)%	50.5%		87.1%		(42.0)%	$	52.21		$	190.36		(72.6)%
2	Boston Park Plaza	$	143.00	$	187.43		(23.7)%	14.9%		90.4%		(83.5)%	$	21.31		$	169.44		(87.4)%
3	Hyatt Regency San Francisco	$	171.62	$	338.77		(49.3)%	11.5%		86.8%		(86.8)%	$	19.74		$	294.05		(93.3)%
4	Renaissance Washington DC	$	119.95	$	237.37		(49.5)%	2.7%		74.5%		(96.4)%	$	3.24		$	176.84		(98.2)%
5	Renaissance Orlando at SeaWorld®	$	121.11	$	174.88		(30.7)%	10.9%		76.2%		(85.7)%	$	13.20		$	133.26		(90.1)%
6	JW Marriott New Orleans	$	139.98	$	210.15		(33.4)%	41.8%		82.7%		(49.5)%	$	58.51		$	173.79		(66.3)%
7	Hyatt Centric Chicago Magnificent Mile	$	151.19	$	180.00		(16.0)%	4.4%		85.7%		(94.9)%	$	6.65		$	154.26		(95.7)%
8	Marriott Boston Long Wharf	$	220.06	$	298.87		(26.4)%	7.8%		82.7%		(90.6)%	$	17.16		$	247.17		(93.1)%
9	Renaissance Long Beach	$	141.27	$	180.82		(21.9)%	18.4%		80.9%		(77.3)%	$	25.99		$	146.28		(82.2)%
10	Embassy Suites Chicago	$	110.27	$	175.71		(37.2)%	8.5%		91.3%		(90.7)%	$	9.37		$	160.42		(94.2)%
11	Embassy Suites La Jolla	$	113.73	$	197.11		(42.3)%	40.1%		77.6%		(48.3)%	$	45.61		$	152.96		(70.2)%
12	Hilton New Orleans St. Charles	$	99.78	$	177.04		(43.6)%	21.8%		71.4%		(69.5)%	$	21.75		$	126.41		(82.8)%
13	Oceans Edge Resort & Marina	$	201.20	$	223.52		(10.0)%	54.0%		83.9%		(35.6)%	$	108.65		$	187.53		(42.1)%

	13 Hotels Open for the Entire Fourth Quarter of 2020	$	128.40	$	220.66		(41.8)%	21.4%		83.3%		(74.3)%	$	27.48		$	183.81		(85.0)%

14	Wailea Beach Resort	$	483.10	$	427.43		13.0%	19.1%		88.1%		(78.3)%	$	92.27		$	376.57		(75.5)%
15	The Bidwell Marriott Portland	$	134.27	$	165.54		(18.9)%	2.7%		69.4%		(96.1)%	$	3.63		$	114.88		(96.8)%

	2 Hotels Open During a Portion of the Fourth Quarter of 2020	$	461.38	$	358.30		28.8%	13.8%		82.2%		(83.2)%	$	63.67		$	294.52		(78.4)%

	2 Hotels with Suspended Operations During All of the Fourth Quarter of 2020	$	—	$	153.77		(100.0)%	0.0%		79.3%		(100.0)%	$	—		$	121.94		(100.0)%

	17 Hotel Portfolio (1)	$	150.03	$	227.69		(34.1)%	19.0%		82.9%		(77.1)%	$	28.51		$	188.76		(84.9)%

	Add: Sold/Disposed Hotels (2)
	Renaissance Los Angeles Airport	$	92.65	$	137.53		(32.6)%	32.0%		91.3%		(65.0)%	$	29.65		$	125.56		(76.4)%
	Hilton Times Square	$	—	$	274.96		(100.0)%	0.0%		99.0%		(100.0)%	$	—		$	272.21		(100.0)%

	Actual Portfolio (3)	$	145.12	$	225.43		(35.6)%	18.8%		84.1%		(77.6)%	$	27.28		$	189.59		(85.6)%

*Footnotes on page 44


PROPERTY-LEVEL OPERATING STATISTICS			Page 40

Supplemental Financial InformationFebruary 11, 2021

Property-Level Operating Statistics

December 2020/2019


		ADR						Occupancy						RevPAR
	Hotels sorted by number of rooms	December						December					December
		2020		****	2019	****	Change	2020	****	2019	****	Change	2020		****	2019		****	Change
1	Hilton San Diego Bayfront	$	106.74	$	170.63		(37.4)%	18.3%		76.4%		(76.0)%	$	19.53		$	130.36		(85.0)%
2	Boston Park Plaza	$	151.42	$	144.51		4.8%	14.5%		76.0%		(80.9)%	$	21.96		$	109.83		(80.0)%
3	Hyatt Regency San Francisco	$	183.22	$	263.65		(30.5)%	5.6%		81.6%		(93.1)%	$	10.26		$	215.14		(95.2)%
4	Renaissance Washington DC	$	122.61	$	173.53		(29.3)%	2.5%		58.3%		(95.7)%	$	3.07		$	101.17		(97.0)%
5	Renaissance Orlando at SeaWorld®	$	112.33	$	169.47		(33.7)%	13.5%		84.4%		(84.0)%	$	15.16		$	143.03		(89.4)%
6	JW Marriott New Orleans	$	118.83	$	180.78		(34.3)%	17.9%		74.6%		(76.0)%	$	21.27		$	134.86		(84.2)%
7	Hyatt Centric Chicago Magnificent Mile	$	146.56	$	143.66		2.0%	6.8%		79.4%		(91.4)%	$	9.97		$	114.07		(91.3)%
8	Marriott Boston Long Wharf	$	208.54	$	241.74		(13.7)%	7.0%		78.3%		(91.1)%	$	14.60		$	189.28		(92.3)%
9	Renaissance Long Beach (4)	$	149.27	$	161.35		(7.5)%	8.7%		69.5%		(87.5)%	$	12.99		$	112.14		(88.4)%
10	Embassy Suites Chicago	$	125.69	$	134.20		(6.3)%	8.4%		94.8%		(91.1)%	$	10.56		$	127.22		(91.7)%
11	Embassy Suites La Jolla	$	108.49	$	162.92		(33.4)%	28.0%		79.1%		(64.6)%	$	30.38		$	128.87		(76.4)%
12	Hilton New Orleans St. Charles	$	99.26	$	154.48		(35.7)%	16.8%		58.1%		(71.1)%	$	16.68		$	89.75		(81.4)%
13	Oceans Edge Resort & Marina	$	283.97	$	290.47		(2.2)%	63.9%		88.7%		(28.0)%	$	181.46		$	257.65		(29.6)%

	13 Hotels Open for the Entire Fourth Quarter of 2020	$	144.00	$	180.90		(20.4)%	13.4%		76.3%		(82.4)%	$	19.30		$	138.03		(86.0)%

14	Wailea Beach Resort	$	500.96	$	656.06		(23.6)%	23.4%		90.4%		(74.1)%	$	117.22		$	593.08		(80.2)%
15	The Bidwell Marriott Portland	$	122.40	$	121.57		0.7%	5.1%		41.5%		(87.7)%	$	6.24		$	50.45		(87.6)%

	2 Hotels Open During a Portion of the Fourth Quarter of 2020	$	465.61	$	563.65		(17.4)%	17.6%		75.1%		(76.6)%	$	81.95		$	423.30		(80.6)%

	2 Hotels with Suspended Operations During All of the Fourth Quarter of 2020	$	—	$	128.63		(100.0)%	0.0%		73.6%		(100.0)%	$	—		$	94.67		(100.0)%

	17 Hotel Portfolio (1)	$	183.71	$	210.35		(12.7)%	12.7%		76.0%		(83.3)%	$	23.33		$	159.87		(85.4)%

	Add: Sold/Disposed Hotels (2)
	Renaissance Los Angeles Airport	$	92.94	$	128.66		(27.8)%	18.7%		89.7%		(79.2)%	$	17.38		$	115.41		(84.9)%
	Hilton Times Square	$	—	$	364.50		(100.0)%	0.0%		98.2%		(100.0)%	$	—		$	357.94		(100.0)%

	Actual Portfolio (3)	$	182.05	$	214.93		(15.3)%	12.3%		77.7%		(84.2)%	$	22.39		$	167.00		(86.6)%

*Footnotes on page 44


PROPERTY-LEVEL OPERATING STATISTICS			Page 41

Supplemental Financial InformationFebruary 11, 2021

Property-Level Operating Statistics

Q4 2020/2019


		ADR						Occupancy						RevPAR
	Hotels sorted by number of rooms	Quarter Ended December 31,						Quarter Ended December 31,					Quarter Ended December 31,
		2020		****	2019	****	Change	2020	****	2019	****	Change	2020		****	2019		****	Change
1	Hilton San Diego Bayfront	$	118.11	$	217.65		(45.7)%	29.7%		82.4%		(64.0)%	$	35.08		$	179.34		(80.4)%
2	Boston Park Plaza	$	143.98	$	200.21		(28.1)%	17.5%		88.1%		(80.1)%	$	25.20		$	176.39		(85.7)%
3	Hyatt Regency San Francisco	$	173.02	$	319.68		(45.9)%	10.7%		88.2%		(87.9)%	$	18.51		$	281.96		(93.4)%
4	Renaissance Washington DC	$	119.33	$	238.17		(49.9)%	3.3%		73.4%		(95.5)%	$	3.94		$	174.82		(97.7)%
5	Renaissance Orlando at SeaWorld®	$	115.21	$	174.42		(33.9)%	10.5%		81.2%		(87.1)%	$	12.10		$	141.63		(91.5)%
6	JW Marriott New Orleans	$	134.04	$	208.88		(35.8)%	29.2%		82.6%		(64.6)%	$	39.14		$	172.53		(77.3)%
7	Hyatt Centric Chicago Magnificent Mile	$	156.61	$	188.69		(17.0)%	6.1%		85.0%		(92.8)%	$	9.55		$	160.39		(94.0)%
8	Marriott Boston Long Wharf	$	223.79	$	314.91		(28.9)%	11.2%		84.4%		(86.7)%	$	25.06		$	265.78		(90.6)%
9	Renaissance Long Beach (4)	$	143.39	$	179.29		(20.0)%	18.6%		77.8%		(76.1)%	$	26.67		$	139.49		(80.9)%
10	Embassy Suites Chicago	$	124.89	$	183.68		(32.0)%	9.7%		93.7%		(89.6)%	$	12.11		$	172.11		(93.0)%
11	Embassy Suites La Jolla	$	115.79	$	183.93		(37.0)%	43.3%		79.7%		(45.7)%	$	50.14		$	146.59		(65.8)%
12	Hilton New Orleans St. Charles	$	107.50	$	172.91		(37.8)%	22.6%		67.8%		(66.7)%	$	24.30		$	117.23		(79.3)%
13	Oceans Edge Resort & Marina	$	234.38	$	233.25		0.5%	52.8%		84.4%		(37.4)%	$	123.75		$	196.86		(37.1)%

	13 Hotels Open for the Entire Fourth Quarter of 2020	$	139.66	$	221.66		(37.0)%	18.1%		82.8%		(78.1)%	$	25.28		$	183.53		(86.2)%

14	Wailea Beach Resort	$	493.09	$	505.64		(2.5)%	14.1%		89.8%		(84.3)%	$	69.53		$	454.06		(84.7)%
15	The Bidwell Marriott Portland	$	129.96	$	170.52		(23.8)%	3.5%		65.1%		(94.6)%	$	4.55		$	111.01		(95.9)%

	2 Hotels Open During a Portion of the Fourth Quarter of 2020	$	455.13	$	422.53		7.7%	10.7%		82.1%		(87.0)%	$	48.70		$	346.90		(86.0)%

	2 Hotels with Suspended Operations During All of the Fourth Quarter of 2020	$	—	$	162.33		(100.0)%	0.0%		79.0%		(100.0)%	$	—		$	128.24		(100.0)%

	17 Hotel Portfolio (1)	$	158.52	$	234.86		(32.5)%	16.0%		82.4%		(80.6)%	$	25.36		$	193.52		(86.9)%

	Add: Sold/Disposed Hotels (2)
	Renaissance Los Angeles Airport	$	100.08	$	139.09		(28.0)%	28.1%		89.7%		(68.7)%	$	28.12		$	124.76		(77.5)%
	Hilton Times Square	$	—	$	318.59		(100.0)%	0.0%		98.9%		(100.0)%	$	—		$	315.09		(100.0)%

	Actual Portfolio (3)	$	154.57	$	234.43		(34.1)%	15.7%		83.6%		(81.2)%	$	24.27		$	195.98		(87.6)%

*Footnotes on page 44


PROPERTY-LEVEL OPERATING STATISTICS			Page 42

Supplemental Financial InformationFebruary 11, 2021

Property-Level Operating Statistics

FY 2020/2019


		ADR					Occupancy					RevPAR
	Hotels sorted by number of rooms	Year Ended December 31,					Year Ended December 31,					Year Ended December 31,
		2020		2019		Change	2020	****	2019	****	Change	2020		****	2019		****	Change
1	Hilton San Diego Bayfront	$	192.17	$	247.20	(22.3)%	26.8%		81.4%		(67.1)%	$	51.50		$	201.22		(74.4)%
2	Boston Park Plaza	$	146.44	$	213.07	(31.3)%	23.9%		90.6%		(73.6)%	$	35.00		$	193.04		(81.9)%
3	Hyatt Regency San Francisco	$	298.61	$	322.08	(7.3)%	17.6%		89.0%		(80.2)%	$	52.56		$	286.65		(81.7)%
4	Renaissance Washington DC	$	215.98	$	232.64	(7.2)%	15.4%		78.1%		(80.3)%	$	33.26		$	181.69		(81.7)%
5	Renaissance Orlando at SeaWorld®	$	181.69	$	168.18	8.0%	17.1%		78.9%		(78.3)%	$	31.07		$	132.69		(76.6)%
6	JW Marriott New Orleans	$	192.13	$	206.47	(6.9)%	26.3%		83.9%		(68.7)%	$	50.53		$	173.23		(70.8)%
7	Hyatt Centric Chicago Magnificent Mile	$	133.75	$	192.11	(30.4)%	15.0%		83.1%		(81.9)%	$	20.06		$	159.64		(87.4)%
8	Marriott Boston Long Wharf	$	229.18	$	332.29	(31.0)%	21.9%		86.7%		(74.7)%	$	50.19		$	288.10		(82.6)%
9	Renaissance Long Beach (4)	$	159.10	$	189.85	(16.2)%	33.1%		81.6%		(59.4)%	$	52.66		$	154.92		(66.0)%
10	Embassy Suites Chicago	$	124.00	$	189.98	(34.7)%	21.1%		90.0%		(76.6)%	$	26.16		$	170.98		(84.7)%
11	Embassy Suites La Jolla	$	141.59	$	200.89	(29.5)%	50.8%		86.6%		(41.3)%	$	71.93		$	173.97		(58.7)%
12	Hilton New Orleans St. Charles	$	150.62	$	169.29	(11.0)%	28.3%		74.3%		(61.9)%	$	42.63		$	125.78		(66.1)%
13	Oceans Edge Resort & Marina	$	271.75	$	242.04	12.3%	46.7%		88.7%		(47.4)%	$	126.91		$	214.69		(40.9)%

	13 Hotels Open for the Entire Fourth Quarter of 2020	$	186.27	$	230.05	(19.0)%	23.8%		84.1%		(71.7)%	$	44.33		$	193.47		(77.1)%

14	Wailea Beach Resort	$	541.90	$	478.47	13.3%	22.5%		91.2%		(75.3)%	$	121.93		$	436.36		(72.1)%
15	The Bidwell Marriott Portland	$	140.79	$	186.05	(24.3)%	10.5%		80.1%		(86.9)%	$	14.78		$	149.03		(90.1)%

	2 Hotels Open During a Portion of the Fourth Quarter of 2020	$	470.62	$	394.94	19.2%	18.7%		87.7%		(78.7)%	$	88.01		$	346.36		(74.6)%

	2 Hotels with Suspended Operations During All of the Fourth Quarter of 2020	$	123.66	$	164.41	(24.8)%	12.4%		77.7%		(84.0)%	$	15.33		$	127.75		(88.0)%

	17 Hotel Portfolio (1)	$	204.52	$	240.51	(15.0)%	22.5%		83.9%		(73.2)%	$	46.02		$	201.79		(77.2)%

	Add: Sold/Disposed Hotels (2)
	Renaissance Harborplace	$	134.41	$	164.19	(18.1)%	26.7%		64.0%		(58.3)%	$	35.89		$	105.08		(65.8)%
	Renaissance Los Angeles Airport	$	126.58	$	146.93	(13.9)%	36.5%		90.6%		(59.7)%	$	46.20		$	133.12		(65.3)%
	Hilton Times Square	$	163.52	$	277.47	(41.1)%	20.6%		99.1%		(79.2)%	$	33.69		$	274.97		(87.7)%

	Actual Portfolio (3)	$	196.99	$	237.56	(17.1)%	23.1%		85.0%		(72.8)%	$	45.50		$	201.93		(77.5)%

*Footnotes on page 44


PROPERTY-LEVEL OPERATING STATISTICS			Page 43

Supplemental Financial InformationFebruary 11, 2021

Property-Level Operating Statistics

October, November, December, Q4 and FY 2020/2019

(1)	17 Hotel Portfolio includes all hotels owned by the Company as of December 31, 2020.
(2)	Sold/Disposed Hotels for October, November, December and the fourth quarter of 2020 include results for the Renaissance Los Angeles Airport, sold in December 2020, and the Hilton Times Square, assigned to its mortgage holder in December 2020. Sold/Disposed Hotels for the year ended December 31, 2020 also include results for the Renaissance Harborplace, sold in July 2020.
---	---
(3)	Actual Portfolio includes the 17 Hotel Portfolio plus the Sold/Disposed Hotels.
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(4)	Excludes the effects of adjustments to airline crew revenue totaling $(0.4) million and $(23,000) recorded in June and December 2020, respectively.
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PROPERTY-LEVEL OPERATING STATISTICS			Page 44

Supplemental Financial InformationFebruary 11, 2021

PROPERTY-LEVEL ADJUSTED EBITDAre &

ADJUSTED EBITDAre MARGINS


PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS			Page 45

Supplemental Financial InformationFebruary 11, 2021

Property-Level Adjusted EBITDAre and Adjusted EBITDAre Margins

Q4 2020


	Hotels sorted by number of rooms	Quarter Ended December 31, 2020
	(In thousands)							Plus:			Plus:			Plus:			Equals:			Hotel
		Total			Net Income /			Other									Hotel Adjusted			Adjusted EBITDAre
		Revenues		****	(Loss)		****	Adjustments (1)		****	Depreciation		****	Interest Expense		****	EBITDAre (2)		****	Margins (2)
1	Hilton San Diego Bayfront	$	7,564		$	(5,528)		$	(467)		$	3,241		$	896		$	(1,858)		(24.6)%
2	Boston Park Plaza		3,245			(6,638)			—			4,518			—			(2,120)		(65.3)%
3	Hyatt Regency San Francisco		2,086			(6,934)			(169)			3,269			—			(3,834)		(183.8)%
4	Renaissance Washington DC		527			(6,100)			637			1,898			1,615			(1,950)		(370.0)%
5	Renaissance Orlando at SeaWorld®		1,856			(4,063)			8			2,423			—			(1,632)		(87.9)%
6	JW Marriott New Orleans		2,297			(2,576)			(21)			1,613			866			(118)		(5.1)%
7	Hyatt Centric Chicago Magnificent Mile		414			(3,303)			(350)			1,153			350			(2,150)		(519.3)%
8	Marriott Boston Long Wharf		1,363			(4,310)			(103)			2,780			—			(1,633)		(119.8)%
9	Renaissance Long Beach (2)		1,180			(1,318)			(28)			940			—			(406)		(34.4)%
10	Embassy Suites Chicago		609			(1,089)			(56)			760			—			(385)		(63.2)%
11	Embassy Suites La Jolla		1,910			(1,685)			(51)			1,010			621			(105)		(5.5)%
12	Hilton New Orleans St. Charles		734			(927)			(5)			621			—			(311)		(42.4)%
13	Oceans Edge Resort & Marina		3,354			85			—			882			—			967		28.8%

	13 Hotels Open for the Entire Fourth Quarter of 2020		27,139			(44,386)			(605)			25,108			4,348			(15,535)		(57.2)%

14	Wailea Beach Resort		4,780			(4,072)			(204)			4,068			—			(208)		(4.4)%
15	The Bidwell Marriott Portland		137			(1,881)			(16)			870			—			(1,027)		(749.6)%

	2 Hotels Open During a Portion of the Fourth Quarter of 2020		4,917			(5,953)			(220)			4,938			—			(1,235)		(25.1)%

	2 Hotels with Suspended Operations During All of the Fourth Quarter of 2020		272			(4,451)			2,373			1,199			—			(879)		(323.2)%

	17 Hotel Portfolio (3)		32,328			(54,790)			1,548			31,245			4,348			(17,649)		(54.6)%

	Add: Sold/Disposed Hotels (4)
	Renaissance Los Angeles Airport (2)		1,245			(428)			(575)			704			—			(299)		(24.0)%
	Hilton Times Square		4			(5,385)			43			552			817			(3,973)		(99325.0)%

	Actual Portfolio (5)	$	33,577		$	(60,603)		$	1,016		$	32,501		$	5,165		$	(21,921)		(65.3)%

*Footnotes on page 48


PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS			Page 46

Supplemental Financial InformationFebruary 11, 2021

Property-Level Adjusted EBITDAre and Adjusted EBITDAre Margins

FY 2020


	Hotels sorted by number of rooms	Year Ended December 31, 2020
	(In thousands)							Plus:			Plus:			Plus:			Equals:			Hotel
		Total						Other									Hotel Adjusted			Adjusted EBITDAre
		Revenues		****	Net Loss		****	Adjustments (6)		****	Depreciation		****	Interest Expense		****	EBITDAre (2)		****	Margins (2)
1	Hilton San Diego Bayfront	$	40,331		$	(21,476)		$	(1,311)		$	12,911		$	4,778		$	(5,098)		(12.6)%
2	Boston Park Plaza		18,625			(30,190)			(179)			18,066			—			(12,303)		(66.1)%
3	Hyatt Regency San Francisco		23,529			(22,945)			(87)			13,003			—			(10,029)		(42.6)%
4	Renaissance Washington DC		16,109			(23,910)			1,113			7,933			6,586			(8,278)		(51.4)%
5	Renaissance Orlando at SeaWorld®		20,702			(13,361)			632			10,129			—			(2,600)		(12.6)%
6	JW Marriott New Orleans		12,657			(10,166)			91			6,485			3,480			(110)		(0.9)%
7	Hyatt Centric Chicago Magnificent Mile (2)		4,199			(13,873)			(1,755)			5,109			1,401			(9,118)		(217.1)%
8	Marriott Boston Long Wharf		11,576			(18,345)			60			11,023			—			(7,262)		(62.7)%
9	Renaissance Long Beach (2)		9,100			(5,103)			261			3,858			—			(984)		(10.8)%
10	Embassy Suites Chicago (2)		4,581			(7,412)			175			3,010			—			(4,227)		(92.3)%
11	Embassy Suites La Jolla		10,714			(5,403)			(51)			4,152			2,496			1,194		11.1%
12	Hilton New Orleans St. Charles		4,717			(3,028)			4			2,535			—			(489)		(10.4)%
13	Oceans Edge Resort & Marina		13,523			(90)			(13)			3,447			—			3,344		24.7%

	13 Hotels Open for the Entire Fourth Quarter of 2020		190,363			(175,302)			(1,060)			101,661			18,741			(55,960)		(29.4)%

14	Wailea Beach Resort		34,943			(12,237)			70			16,095			—			3,928		11.2%
15	The Bidwell Marriott Portland		1,577			(5,267)			(16)			1,945			—			(3,338)		(211.7)%

	2 Hotels Open During a Portion of the Fourth Quarter of 2020		36,520			(17,504)			54			18,040			—			590		1.6%

	2 Hotels with Suspended Operations During All of the Fourth Quarter of 2020 (2)		6,111			(16,621)			3,271			5,139			—			(8,211)		(134.4)%

	17 Hotel Portfolio (3)		232,994			(209,427)			2,265			124,840			18,741			(63,581)		(27.3)%

	Add: Sold/Disposed Hotels (4)
	Renaissance Harborplace (2)		6,330			(5,475)			(57)			2,622			—			(2,910)		(46.0)%
	Renaissance Los Angeles Airport (2)		10,586			(4,977)			(437)			3,897			—			(1,517)		(14.3)%
	Hilton Times Square		7,180			(33,377)			5,508			4,667			6,079			(17,123)		(238.5)%

	Actual Portfolio (5)	$	257,090		$	(253,256)		$	7,279		$	136,026		$	24,820		$	(85,131)		(33.1)%

*Footnotes on page 48


PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS			Page 47

Supplemental Financial InformationFebruary 11, 2021

Property-Level Adjusted EBITDAre and Adjusted EBITDAre Margins

Q4 and FY 2020 Footnotes

(1)	Other Adjustments for the fourth quarter of 2020 include: $(0.3) million in amortization of the operating lease right-of-use assets at the Hilton Garden Inn Chicago Downtown/Magnificent Mile, the Hilton San Diego Bayfront, the Hilton Times Square and the JW Marriott New Orleans; $(0.4) million in finance lease obligation interest - cash ground rent at the Hyatt Centric Chicago Magnificent Mile; a total of $3.1 million in severance recorded at a majority of the Company's hotels; a total of $(1.0) million in credit card merchant class action settlement proceeds received at a majority of the Company's hotels; $0.1 million in legal fees at the Renaissance Westchester; and a total of $(0.5) million in prior year property tax credits received at the Renaissance Long Beach and the Renaissance Los Angeles Airport.
(2)	Both Hotel Adjusted EBITDAre and Hotel Adjusted EBITDAre Margins are presented excluding any prior year property tax assessments and credits, net of any appeal fees. In the fourth quarter of 2020, a total of $(0.5) million in prior year property tax credits were received at the Renaissance Long Beach and the Renaissance Los Angeles Airport. For the year ended December 31, 2020, total prior year property tax net credits of $(0.3) million were received at the Embassy Suites Chicago, the Hilton Garden Inn Chicago Downtown/Magnificent Mile, the Hyatt Centric Chicago Magnificent Mile, the Renaissance Harborplace, the Renaissance Long Beach and the Renaissance Los Angeles Airport.
---	---
(3)	17 Hotel Portfolio includes all hotels owned by the Company as of December 31, 2020.
---	---
(4)	Sold/Disposed Hotels for the fourth quarter of 2020 include results for the Renaissance Los Angeles Airport, sold in December 2020, and the Hilton Times Square, assigned to its mortgage holder in December 2020. Sold/Disposed Hotels for the year ended December 31, 2020 also include results for the Renaissance Harborplace, sold in July 2020.
---	---
(5)	Actual Portfolio includes the 17 Hotel Portfolio plus the Sold/Disposed Hotels.
---	---
(6)	Other Adjustments for the year ended December 31, 2020 include: $(1.1) 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; $(1.4) million in finance lease obligation interest - cash ground rent at the Hyatt Centric Chicago Magnificent Mile; $10,000 in city taxes assessed on commercial rents at the Hyatt Regency San Francisco; a total of $11.0 million in severance recorded at a majority of the Company's hotels; a total of $(1.6) million in credit card merchant class action settlement proceeds received at a majority of the Company's hotels; $0.6 million in legal fees at the Renaissance Westchester; and a total of $(0.3) million in prior year property tax net credits received at the Embassy Suites Chicago, the Hilton Garden Inn Chicago Downtown/Magnificent Mile, the Hyatt Centric Chicago Magnificent Mile, the Renaissance Harborplace, the Renaissance Long Beach and the Renaissance Los Angeles Airport.
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PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS			Page 48