8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

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

Date of Report (Date of earliest event reported): November 8, 2022

Sunstone Hotel Investors, Inc.

(Exact Name of Registrant as Specified in Its Charter)

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

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

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( 949 ) 330-4000

(Registrant’s telephone number including area code)

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N/A

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

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

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

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Securities registered pursuant to Section 12(b) of the Act:	​	​
Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, $0.01 par value	SHO	New York Stock Exchange
Series H Cumulative Redeemable Preferred Stock, $0.01 par value	SHO.PRH	New York Stock Exchange
Series I Cumulative Redeemable Preferred Stock, $0.01 par value	SHO.PRI	New York Stock Exchange

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

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​	Emerging growth company	☐

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

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Item 2.02.Results of Operations and Financial Condition.

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On November 8, 2022, Sunstone Hotel Investors, Inc. (the “Company”) issued a press release regarding its financial results for the third quarter ended September 30, 2022. The press release referred to supplemental financial information that is available on the Company’s website, free of charge, at www.sunstonehotels.com. A copy of the press release and the supplemental financial information are attached hereto as Exhibits 99.1 and 99.2, respectively, and are incorporated herein by this reference.

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

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Item 9.01.Financial Statements and Exhibits.

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(d) The following exhibits are furnished herewith:

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EXHIBIT INDEX

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Exhibit No.	****	Description
99.1	​	Press Release, dated November 8, 2022.
99.2	​	Supplemental Financial Information for the third quarter ended September 30, 2022.
104	​	Cover Page Interactive Data File (embedded within the Inline XBRL document).

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​ SIGNATURE

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

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​		Sunstone Hotel Investors, Inc.
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Date: November 8, 2022	​	By:	/s/ Aaron R. Reyes
​	​	​	Aaron R. Reyes (Principal Financial Officer and Duly Authorized Officer)
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Exhibit 99.1

For Additional Information:

Aaron Reyes

Sunstone Hotel Investors, Inc.

(949) 382-3018

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SUNSTONE HOTEL INVESTORS REPORTS RESULTS FOR THIRD QUARTER 2022

Returns Capital to Shareholders Through Additional Share Repurchases and Dividends

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IRVINE, CA – November 8, 2022 – Sunstone Hotel Investors, Inc. (the “Company” or “Sunstone”) (NYSE: SHO), the owner of Long-Term Relevant Real Estate® in the lodging industry, today announced results for the third quarter ended September 30, 2022.

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

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●	Net Income (Loss): Net income was $20.5 million as compared to a net loss of $22.1 million.
●	Comparable Portfolio RevPAR: RevPAR at the comparable 12 hotels the Company owned during both 2022 and 2021 plus The Confidante Miami Beach (the “Comparable Portfolio”), increased 49.0% to $207.18. The average daily rate was $287.75 and occupancy was 72.0%.
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●	Total Portfolio RevPAR: RevPAR at the 15 hotels, which includes the Comparable Portfolio, the Montage Healdsburg and the Four Seasons Resort Napa Valley (the “Total Portfolio”), was $222.50. The average daily rate was $311.62 and occupancy was 71.4%.
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●	Adjusted EBITDAre**:** Adjusted EBITDAre, excluding noncontrolling interest increased 80.6% to $63.8 million.
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●	Adjusted FFO: Adjusted FFO attributable to common stockholders per diluted share increased 118.2% to $0.24. In 2022, the Company changed its presentation of Adjusted FFO attributable to common stockholders to exclude the noncash amortization expense associated with deferred stock compensation. Adjusted FFO attributable to common stockholders for the prior periods presented in this release have also been adjusted to exclude this expense. The per share impact of this change as compared to the Company’s prior presentation is $0.01 for both of the third quarters of 2022 and 2021.
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Information regarding the non-GAAP financial measures disclosed in this release is provided below in “Non-GAAP Financial Measures.” Reconciliations of non-GAAP financial measures to the most comparable GAAP measure for each of the periods presented are included later in this release.

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Bryan A. Giglia, Chief Executive Officer, stated, “We are pleased with our operating results in the third quarter which reflect continued strength in leisure travel and incremental growth in corporate and group demand. During the quarter, our operators aggressively grew room rates and delivered operating margins that were near pre-pandemic levels, despite rising costs. We are particularly encouraged by the increasing business volume we saw in September at our urban and group-oriented hotels which contributed to comparable portfolio monthly RevPAR that was above 2019 levels for the first time since the pandemic began. These positive trends have continued into October with our portfolio maintaining strong rates as occupancy continues to rebuild.”

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Mr. Giglia continued, “During the third quarter, we successfully allocated capital by making strategic investments in our portfolio, initiating a value enhancing repositioning of our recently acquired resort in Miami and returning additional capital to our shareholders. We recently completed the guestroom renovation at the Hyatt Regency San Francisco and continued to advance the Westin conversion at our hotel in Washington, DC. These internal investments are expected to provide strong returns by enabling the hotels to better capture additional business as corporate and group events increasingly return to these markets. We are pleased with the initial performance of our recently acquired hotel in Miami, which is pacing ahead of expectations leading up to the start of its transformation to Andaz Miami Beach next year. Additionally, we continue to return capital to our shareholders through quarterly dividends and additional share repurchases. Our balance sheet retains capacity for additional capital deployment, and we continue to explore ways to recycle capital into higher growth opportunities.” 1

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

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​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	Three Months Ended September 30,								​	Nine Months Ended September 30,
​	2022		****	2021		****	Change		​	2022		​	2021		​	Change
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net Income (Loss)	$	20.5	​	$	(22.1)	​	192.6	%	​	$	73.3	​	$	(105.3)	​	169.6	%
Income (Loss) Attributable to Common Stockholders per Diluted Share	$	0.08	​	$	(0.13)	​	161.5	%	​	$	0.27	​	$	(0.56)	​	148.2	%
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Comparable Portfolio RevPAR (1)	$	207.18	​	$	139.09	​	49.0	%	​	$	194.66	​	$	101.49	​	91.8	%
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Comparable Portfolio Occupancy (1)	​	72.0	%	​	53.7	%	1,830	bps	​	​	67.1	%	​	42.8	%	2,430	bps
Comparable Portfolio ADR (1)	$	287.75	​	$	259.02	​	11.1	%	​	$	290.10	​	$	237.13	​	22.3	%
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Total Portfolio RevPAR (2)	$	222.50	​	​	N/A	​	N/A	​	​	$	208.84	​	​	N/A	​	N/A	​
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Total Portfolio Occupancy (2)	​	71.4	%	​	N/A	​	N/A	​	​	​	66.7	%	​	N/A	​	N/A	​
Total Portfolio ADR (2)	$	311.62	​	​	N/A	​	N/A	​	​	$	313.10	​	​	N/A	​	N/A	​
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Comparable Portfolio Adjusted EBITDAre Margin (1)	​	30.4	%	​	23.4	%	700	bps	​	​	31.1	%	​	15.2	%	1,590	bps
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Adjusted EBITDAre, excluding noncontrolling interest	$	63.8	​	$	35.4	​	80.6	%	​	$	165.0	​	$	36.0	​	358.0	%
Adjusted FFO Attributable to Common Stockholders	$	51.3	​	$	23.4	​	119.2	%	​	$	130.9	​	$	0.3	​	42,816.4	%
Adjusted FFO Attributable to Common Stockholders per Diluted Share	$	0.24	​	$	0.11	​	118.2	%	​	$	0.61	​	$	—	​	N/A	​

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(1)	Comparable Portfolio operating statistics presented here and elsewhere in this release include both prior ownership results and the Company’s ownership results for The Confidante Miami Beach, acquired by the Company in June 2022.
(2)	The Total Portfolio consists of all 15 hotels owned by the Company as of September 30, 2022. Total Portfolio operating statistics presented here and elsewhere in this release include both prior ownership results and the Company’s ownership results for The Confidante Miami Beach, acquired by the Company in June 2022. The Total Portfolio includes the Company’s ownership results for the Montage Healdsburg and the Four Seasons Resort Napa Valley, which were acquired in April 2021 and December 2021, respectively. Both the Montage Healdsburg and the Four Seasons Resort Napa Valley are newly-developed hotels which opened on limited bases in December 2020 and October 2021, respectively. Prior year information is not comparable.
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Third Quarter 2022 Highlights

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●	Completed the previously announced Second Amended and Restated Credit Agreement (the “Amended Credit Agreement”) which expanded the Company’s unsecured borrowing capacity and extended the maturity of the in-place term loans. The Amended Credit Agreement continues to provide for a $500.0 million revolving credit facility and increased the aggregate amount of the Company’s two term loans from $108.3 million to $350.0 million. The facilities bear interest pursuant to a leverage-based pricing grid ranging from 1.35% to 2.25% over the applicable adjusted term SOFR. The $500.0 million revolving credit facility has two six-month extension options, which would result in an extended maturity of July 2027. The two term loan facilities each have a balance of $175.0 million and mature in July 2027 and January 2028. The Company utilized the proceeds received from the incremental borrowing on the term loans to fully repay the $230.0 million that was outstanding on its revolving credit facility.
●	Repurchased $20.0 million of the Company's common stock as of November 4, 2022 (including $11.3 million repurchased subsequent to the end of the third quarter) at an average purchase price of $9.73 per share. The average purchase price per share represents a substantial discount to consensus estimates of NAV and implies a highly attractive valuation multiple on the Company’s stabilized cash flow.
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●	Completed the renovation at the Hyatt Regency San Francisco. As part of the project, the guestrooms and bathrooms were renovated including the replacement of casegoods and softgoods and the conversion of most bathtubs to showers.
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Recent Developments

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Stock Repurchase Program: During the first nine months of 2022, the Company repurchased 7,995,560 shares of its common stock at an average purchase price of $10.82 per share. Year to date through November 4, 2022, the Company has repurchased a total of 9,166,351 shares of its common stock at an average price per share of $10.67 for a total repurchase amount before expenses of $97.8 million, leaving $402.2 million of authorized capacity remaining under the Company’s stock repurchase program.

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Capital Investments: The Company invested $34.9 million and $97.5 million into its portfolio during the third quarter and first nine months of 2022, respectively. The majority of the investment consisted primarily of additional progress on the renovation of the Renaissance Washington DC in preparation for its conversion to the Westin brand in 2023, and a rooms renovation at the Hyatt Regency San Francisco which has now been completed. These projects are expected to drive incremental growth upon completion and will further enhance the earnings potential and value of these well-located hotels. In 2022, the Company expects to invest approximately $130 million to $140 million into its portfolio.

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Corporate Responsibility Report: In November, the Company published its updated Corporate Responsibility Report. The report includes details on Sunstone’s progress on its Environmental, Social and Governance (“ESG”) initiatives during 2021 and its commitment to enhance its ESG program into 2022. A copy of the report can be found on the Corporate Responsibility page of the Company’s website.

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Balance Sheet and Liquidity Update

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As of September 30, 2022, the Company had $167.8 million of cash and cash equivalents, including restricted cash of $50.3 million, total assets of $3.1 billion, including $2.9 billion of net investments in hotel properties, total debt of $816.6 million and stockholders’ equity of $2.1 billion.

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Operations Update

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Operating statistics for the Total Portfolio were as follows:

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​	​	July			​	August			​	September			​	Third Quarter			​	October
​	​	2022			​	2022			​	2022			​	2022			​	2022 (1)
RevPAR	​	$	232.91	​	​	$	205.57	​	​	$	228.93	​	​	$	222.50	​	​	$	249.42	​
Occupancy	​	​	73.8	%	​	​	69.2	%	​	​	71.1	%	​	​	71.4	%	​	​	75.3	%
Average Daily Rate	​	$	315.59	​	​	$	297.07	​	​	$	321.98	​	​	$	311.62	​	​	$	331.23	​

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Operating statistics for the Comparable Portfolio were as follows:

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​	​	July			​	August			​	September			​	Third Quarter			​	October
​	​	2022			​	2022			​	2022			​	2022			​	2022 (1)
RevPAR	​	$	218.55	​	​	$	193.81	​	​	$	209.58	​	​	$	207.18	​	​	$	231.25	​
Occupancy	​	​	74.6	%	​	​	69.9	%	​	​	71.6	%	​	​	72.0	%	​	​	75.9	%
Average Daily Rate	​	$	292.96	​	​	$	277.27	​	​	$	292.71	​	​	$	287.75	​	​	$	304.68	​
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​	​	July			​	August			​	September			​	Third Quarter			​	October
​	​	2019			​	2019			​	2019			​	2019			​	2019
RevPAR	​	$	222.52	​	​	$	201.12	​	​	$	208.05	​	​	$	210.49	​	​	$	236.74	​
Occupancy	​	​	87.6	%	​	​	85.9	%	​	​	80.9	%	​	​	84.8	%	​	​	88.0	%
Average Daily Rate	​	$	254.02	​	​	$	234.13	​	​	$	257.17	​	​	$	248.22	​	​	$	269.02	​
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​	​	Change 2022 vs. 2019
RevPAR	​	​	(1.8)	%	​	​	(3.6)	%	​	​	0.7	%	​	​	(1.6)	%	​	​	(2.3)	%
Occupancy	​	​	(1,300)	bps	​	​	(1,600)	bps	​	​	(930)	bps	​	​	(1,280)	bps	​	​	(1,210)	bps
Average Daily Rate	​	​	15.3	%	​	​	18.4	%	​	​	13.8	%	​	​	15.9	%	​	​	13.3	%

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October 2022, 2021 and 2019 results for the Comparable Portfolio included the following ($ in millions, except RevPAR and ADR):

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​	October
​	2022 (1)			​	2021			​	2019			​	Change 2022 vs. 2021
Room Revenue	$	53.9	​	​	$	32.9	​	​	$	55.2	​	​	63.8	%
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RevPAR	$	231.25	​	​	$	141.29	​	​	$	236.74	​	​	63.7	%
Occupancy	​	75.9	%	​	​	55.7	%	​	​	88.0	%	​	2,020	bps
Average Daily Rate	$	304.68	​	​	$	253.66	​	​	$	269.02	​	​	20.1	%
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(1)	October 2022 results are preliminary and may be adjusted during the Company’s month-end close process.
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Dividend Update

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On November 7, 2022, the Company’s Board of Directors declared a cash dividend of $0.05 per share of common stock, as well as cash dividends of $0.124162 per share payable to its Series G cumulative redeemable preferred stockholder, $0.382813 per share payable to its Series H cumulative redeemable preferred stockholders and $0.356250 per share payable to its Series I cumulative redeemable preferred stockholders. The dividends will be paid on January 17, 2023 to stockholders of record as of December 30, 2022.

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Supplemental Disclosures

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

Earnings Call

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The Company will host a conference call to discuss third quarter 2022 financial results on November 8, 2022, at 12:00 p.m. Eastern Time (9:00 a.m. Pacific Time). A live webcast of the call will be available via the Investor Relations section of the Company’s website at www.sunstonehotels.com. Alternatively, interested parties may dial 1-888-330-3573 and reference conference ID 4831656 to listen to the live call. A replay of the webcast will also be archived on the website.

About Sunstone Hotel Investors, Inc.

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Sunstone Hotel Investors, Inc. is a lodging real estate investment trust (“REIT”) that as of the date of this release owns 15 hotels comprised of 7,735 rooms, the majority of which are operated under nationally recognized brands. Sunstone’s strategy is to create long-term stakeholder value through the acquisition, active ownership and disposition of hotels considered to be Long-Term Relevant Real Estate®. For further information, please visit Sunstone’s website at www.sunstonehotels.com. The Company’s website is provided as a reference only and any information on the website is not incorporated by reference in this release.

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Forward-Looking Statements

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This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,” “will” and other similar terms and phrases, including opinions, references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: the impact the COVID-19 pandemic has on the Company’s business and the economy, as well as the response of governments and the Company to the pandemic, and how quickly and successfully effective vaccines and therapies are distributed and administered; increased risks related to employee matters, including increased employment litigation and claims for severance or other benefits tied to termination or furloughs as a result of temporary hotel suspensions or reduced hotel operations due to COVID-19; general economic and business conditions, including a U.S. recession or increased inflation, trade conflicts and tariffs, regional or global economic slowdowns and any type of flu or disease-related pandemic that impacts travel or the ability to travel, including COVID-19; the need for business-related travel, including the increased use of business-related technology; rising hotel operating costs due to labor costs, workers’ compensation and health-care related costs, utility costs, property and liability insurance costs, unanticipated costs such as acts of nature and their consequences and other costs that may not be offset by increased room rates; the ground lease for one of the 4

Company’s hotels; the need for renovations, repositionings and other capital expenditures for the Company’s hotels; the impact, including any delays, of renovations and repositionings on hotel operations; new hotel supply, or alternative lodging options such as timeshare, vacation rentals or sharing services such as Airbnb, in the Company’s markets, which could harm its occupancy levels and revenue at its hotels; competition from hotels not owned by the Company; relationships with, and the requirements, performance and reputation of, the managers of the Company’s hotels; relationships with, and the requirements and reputation of, the Company’s franchisors and hotel brands; the Company’s hotels may become impaired, which may adversely affect its financial condition and results of operations; competition for the acquisition of hotels, and the Company’s ability to complete acquisitions and dispositions; performance of hotels after they are acquired; changes in the Company’s business strategy or acquisition or disposition plans; the Company’s level of debt, including secured, unsecured, fixed and variable rate debt; financial and other covenants in the Company’s debt and preferred stock; the impact on the Company’s business of potential defaults by the Company on its debt agreements or leases; volatility in the capital markets and the effect on lodging demand or the Company’s ability to obtain capital on favorable terms or at all; the Company’s need to operate as a REIT and comply with other applicable laws and regulations, including new laws, interpretations or court decisions that may change the federal or state tax laws or the federal or state income tax consequences of the Company’s qualification as a REIT; potential adverse tax consequences in the event that the Company’s operating leases with its taxable REIT subsidiaries are not held to have been made on an arm’s-length basis; system security risks, data protection breaches, cyber-attacks and systems integration issues, including those impacting the Company’s suppliers, hotel managers or franchisors; other events beyond the Company’s control, including climate change, natural disasters, terrorist attacks or civil unrest; and other risks and uncertainties associated with the Company’s business described in its filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All forward-looking information provided herein is as of the date of this release, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.

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

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Non-GAAP Financial Measures

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

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

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

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

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

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We adjust EBITDAre and FFO attributable to common stockholders for the following items, which may occur in any period, and refer to these measures as either Adjusted EBITDAre, excluding noncontrolling interest or Adjusted FFO attributable to common stockholders:

​

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

​

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

​

●

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

​

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

​

●

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

​

●

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

​

In addition, to derive Adjusted EBITDAre, excluding noncontrolling interest we exclude the noncontrolling partner’s pro rata share of the net (income) loss allocated to the Hilton San Diego Bayfront partnership, as well as the noncontrolling partner’s pro rata share of any EBITDAre and Adjusted EBITDAre components (prior to our acquisition of the noncontrolling partner’s equity interest in the partnership in June 2022). We also exclude the amortization of our right-of-use assets and related lease obligations as these expenses are based on historical cost accounting and do not reflect the actual rent amounts due to the respective lessors or the underlying performance of our hotels. Additionally, we include an adjustment for the cash finance lease expense recorded on the building lease at the Hyatt Centric Chicago Magnificent Mile (prior to the hotel’s sale in February 2022). We determined that the building lease is a finance lease, and, therefore, we include a portion of the lease payment each month in interest expense. We adjust EBITDAre for the finance lease in order to more accurately reflect the actual rent due to the hotel’s lessor in the current period, as well as the operating performance of the hotel. We also exclude the effect of gains and losses on the disposition of undepreciated assets because we believe that including them in Adjusted EBITDAre, excluding noncontrolling interest is not consistent with reflecting the ongoing performance of our assets.

​ 6

To derive Adjusted FFO attributable to common stockholders, we also exclude the noncash interest on our derivatives and finance lease obligation as we believe that these items are not reflective of our ongoing finance costs. Additionally, we exclude the noncontrolling partner’s pro rata share of any FFO adjustments related to our consolidated Hilton San Diego Bayfront partnership components (prior to our acquisition of the noncontrolling partner’s equity interest in the partnership in June 2022). We also exclude the real estate amortization of our right-of-use assets and related lease obligations, which includes the amortization of both our finance and operating lease intangibles (with the exception of our corporate operating lease), as these expenses are based on historical cost accounting and do not reflect the actual rent amounts due to the respective lessors or the underlying performance of our hotels. In addition, we exclude preferred stock redemption charges, changes to deferred tax assets, liabilities or valuation allowances, and income tax benefits or provisions associated with the application of net operating loss carryforwards, uncertain tax positions or with the sale of assets other than real estate investments.

​

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

​

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

​

​

​

​

​

​

​

​ 7

Sunstone Hotel Investors, Inc.

Consolidated Balance Sheets

(In thousands, except share and per share data)

​

​

​	​	​	​	​	​	​
​	​	September 30,		​	December 31,
		2022		****	2021
​	​	(unaudited)		​	​
Assets	​	​	​	​	​	​
Current assets:	​	​	​	​	​	​
Cash and cash equivalents	​	$	117,588	​	$	120,483
Restricted cash	​	​	50,253	​	​	42,234
Accounts receivable, net	​	​	45,750	​	​	28,733
Prepaid expenses and other current assets	​	​	14,374	​	​	14,338
Assets held for sale, net	​	​	—	​	​	76,308
Total current assets	​	​	227,965	​	​	282,096
​	​	​	​	​	​	​
Investment in hotel properties, net	​	​	2,850,225	​	​	2,720,016
Operating lease right-of-use assets, net	​	​	17,866	​	​	23,161
Deferred financing costs, net	​	​	5,382	​	​	2,580
Other assets, net	​	​	8,945	​	​	13,196
​	​	​	​	​	​	​
Total assets	​	$	3,110,383	​	$	3,041,049
​	​	​	​	​	​	​
Liabilities and Equity	​	​	​	​	​	​
Current liabilities:	​	​	​	​	​	​
Accounts payable and accrued expenses	​	$	60,512	​	$	47,701
Accrued payroll and employee benefits	​	​	22,413	​	​	19,753
Dividends and distributions payable	​	​	13,961	​	​	3,513
Other current liabilities	​	​	68,920	​	​	58,884
Current portion of notes payable, net	​	​	2,088	​	​	20,694
Liabilities of assets held for sale	​	​	—	​	​	25,213
Total current liabilities	​	​	167,894	​	​	175,758
​	​	​	​	​	​	​
Notes payable, less current portion, net	​	​	810,909	​	​	588,741
Operating lease obligations, less current portion	​	​	18,349	​	​	25,120
Other liabilities	​	​	9,575	​	​	11,656
Total liabilities	​	​	1,006,727	​	​	801,275
​	​	​	​	​	​	​
Commitments and contingencies	​	​	​	​	​	​
​	​	​	​	​	​	​
Equity:	​	​	​	​	​	​
Stockholders' equity:	​	​	​	​	​	​
Preferred stock, $0.01 par value, 100,000,000 shares authorized:	​	​	​	​	​	​
Series G Cumulative Redeemable Preferred Stock, 2,650,000 shares issued and outstanding at both September 30, 2022 and December 31, 2021, stated at liquidation preference of $25.00 per share	​	​	66,250	​	​	66,250
6.125% Series H Cumulative Redeemable Preferred Stock, 4,600,000 shares issued and outstanding at both September 30, 2022 and December 31, 2021, stated at liquidation preference of $25.00 per share	​	​	115,000	​	​	115,000
5.70% Series I Cumulative Redeemable Preferred Stock, 4,000,000 shares issued and outstanding at both September 30, 2022 and December 31, 2021, stated at liquidation preference of $25.00 per share	​	​	100,000	​	​	100,000
Common stock, $0.01 par value, 500,000,000 shares authorized, 211,570,211 shares issued and outstanding at September 30, 2022 and 219,333,783 shares issued and outstanding at December 31, 2021	​	​	2,116	​	​	2,193
Additional paid in capital	​	​	2,487,931	​	​	2,631,484
Retained earnings	​	​	1,017,890	​	​	948,064
Cumulative dividends and distributions	​	​	(1,685,531)	​	​	(1,664,024)
Total stockholders' equity	​	​	2,103,656	​	​	2,198,967
Noncontrolling interest in consolidated joint venture	​	​	—	​	​	40,807
Total equity	​	​	2,103,656	​	​	2,239,774
​	​	​	​	​	​	​
Total liabilities and equity	​	$	3,110,383	​	$	3,041,049

​

​ 8

​

​

​

Sunstone Hotel Investors, Inc.

Unaudited Consolidated Statements of Operations

(In thousands, except per share data)

​

​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended September 30,					​	Nine Months Ended September 30,
​	****	2022			2021		​	2022		​	2021
​	​	​					​	​
Revenues	​	​	​	​	​	​	​	​	​	​	​	​
Room	​	$	158,400	​	$	118,061	​	$	428,893	​	$	236,877
Food and beverage	​	​	63,476	​	​	27,338	​	​	174,717	​	​	47,547
Other operating	​	​	22,438	​	​	22,022	​	​	64,299	​	​	50,840
Total revenues	​	​	244,314	​	​	167,421	​	​	667,909	​	​	335,264
Operating expenses	​	​	​	​	​	​	​	​	​	​	​	​
Room	​	​	38,791	​	​	32,106	​	​	106,594	​	​	66,692
Food and beverage	​	​	47,181	​	​	27,440	​	​	125,959	​	​	49,088
Other operating	​	​	6,440	​	​	4,643	​	​	17,965	​	​	9,934
Advertising and promotion	​	​	12,325	​	​	8,883	​	​	34,420	​	​	20,800
Repairs and maintenance	​	​	9,382	​	​	10,001	​	​	27,369	​	​	22,678
Utilities	​	​	7,708	​	​	6,164	​	​	19,652	​	​	14,998
Franchise costs	​	​	4,145	​	​	4,181	​	​	11,429	​	​	7,468
Property tax, ground lease and insurance	​	​	19,714	​	​	17,528	​	​	53,160	​	​	47,821
Other property-level expenses	​	​	29,032	​	​	21,633	​	​	83,333	​	​	48,177
Corporate overhead	​	​	7,879	​	​	15,422	​	​	27,310	​	​	32,066
Depreciation and amortization	​	​	31,750	​	​	32,585	​	​	94,003	​	​	96,084
Impairment loss	​	​	—	​	​	1,014	​	​	—	​	​	1,014
Total operating expenses	​	​	214,347	​	​	181,600	​	​	601,194	​	​	416,820
Interest and other income (loss)	​	​	270	​	​	2	​	​	4,766	​	​	(356)
Interest expense	​	​	(9,269)	​	​	(7,983)	​	​	(20,288)	​	​	(23,697)
Gain on sale of assets	​	​	—	​	​	—	​	​	22,946	​	​	—
(Loss) gain on extinguishment of debt, net	​	​	(770)	​	​	61	​	​	(962)	​	​	371
Income (loss) before income taxes	​	​	20,198	​	​	(22,099)	​	​	73,177	​	​	(105,238)
Income tax benefit (provision), net	​	​	290	​	​	(25)	​	​	126	​	​	(91)
Net income (loss)	​	​	20,488	​	​	(22,124)	​	​	73,303	​	​	(105,329)
(Income) loss from consolidated joint venture attributable to noncontrolling interest	​	​	—	​	​	(933)	​	​	(3,477)	​	​	1,638
Preferred stock dividends and redemption charges	​	​	(3,351)	​	​	(6,287)	​	​	(10,897)	​	​	(17,289)
Income (loss) attributable to common stockholders	​	$	17,137	​	$	(29,344)	​	$	58,929	​	$	(120,980)
​	​	​	​	​	​	​	​	​	​	​	​	​
Basic and diluted per share amounts:	​	​	​	​	​	​	​	​	​	​	​	​
Basic and diluted income (loss) attributable to common stockholders per common share	​	$	0.08	​	$	(0.13)	​	$	0.27	​	$	(0.56)
​	​	​	​	​	​	​	​	​	​	​	​	​
Basic weighted average common shares outstanding	​	​	211,010	​	​	217,709	​	​	213,799	​	​	215,765
Diluted weighted average common shares outstanding	​	​	211,289	​	​	217,709	​	​	213,869	​	​	215,765
​	​	​	​	​	​	​	​	​	​	​	​	​
Distributions declared per common share	​	$	0.05	​	$	—	​	$	0.05	​	$	—

​

​

​

​

​

​ 9

Sunstone Hotel Investors, Inc.

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

(Unaudited and in thousands)

​

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

​

​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended September 30,					​	Nine Months Ended September 30,
​		2022		****	2021		​	2022		​	​	2021
​	​	​	​	​	​	​	​	​	​	​	​	​
Net income (loss)	​	$	20,488	​	$	(22,124)	​	$	73,303	​	$	(105,329)
Operations held for investment:	​	​	​	​	​	​	​	​	​	​	​	​
Depreciation and amortization	​	​	31,750	​	​	32,585	​	​	94,003	​	​	96,084
Interest expense	​	​	9,269	​	​	7,983	​	​	20,288	​	​	23,697
Income tax (benefit) provision, net	​	​	(290)	​	​	25	​	​	(126)	​	​	91
Loss (gain) on sale of assets	​	​	—	​	​	12	​	​	(22,946)	​	​	82
Impairment loss	​	​	—	​	​	1,014	​	​	—	​	​	1,014
EBITDAre	​	​	61,217	​	​	19,495	​	​	164,522	​	​	15,639
​	​	​	​	​	​	​	​	​	​	​	​	​
Operations held for investment:	​	​	​	​	​	​	​	​	​	​	​	​
Amortization of deferred stock compensation	​	​	2,230	​	​	3,165	​	​	8,661	​	​	10,576
Amortization of right-of-use assets and obligations	​	​	(350)	​	​	(335)	​	​	(1,050)	​	​	(1,004)
Amortization of contract intangibles, net	​	​	(19)	​	​	—	​	​	(43)	​	​	—
Finance lease obligation interest - cash ground rent	​	​	—	​	​	(351)	​	​	(117)	​	​	(1,053)
Loss (gain) on extinguishment of debt, net	​	​	770	​	​	(61)	​	​	962	​	​	(371)
Prior year property tax adjustments, net	​	​	—	​	​	605	​	​	—	​	​	(1,384)
Hurricane-related losses net of (insurance restoration proceeds)	​	​	—	​	​	1,621	​	​	(2,755)	​	​	1,621
Property-level severance related to sold hotel	​	​	—	​	​	4,562	​	​	—	​	​	4,562
Lawsuit settlement cost	​	​	—	​	​	691	​	​	—	​	​	691
CEO transition costs	​	​	—	​	​	7,976	​	​	—	​	​	7,976
Noncontrolling interest:	​	​	​	​	​	​	​	​	​	​	​	​
(Income) loss from consolidated joint venture attributable to noncontrolling interest	​	​	—	​	​	(933)	​	​	(3,477)	​	​	1,638
Depreciation and amortization	​	​	—	​	​	(791)	​	​	(1,456)	​	​	(2,407)
Interest expense	​	​	—	​	​	(181)	​	​	(374)	​	​	(501)
Amortization of right-of-use asset and obligation	​	​	—	​	​	72	​	​	132	​	​	217
Lawsuit settlement cost	​	​	—	​	​	(173)	​	​	—	​	​	(173)
Adjustments to EBITDAre**, net**	​	​	2,631	​	​	15,867	​	​	483	​	​	20,388
​	​	​	​	​	​	​	​	​	​	​	​	​
Adjusted EBITDAre**, excluding noncontrolling interest**	​	$	63,848	​	$	35,362	​	$	165,005	​	$	36,027

​

​

​

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​

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​

​ 10

Sunstone Hotel Investors, Inc.

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

(Unaudited and in thousands, except per share data)

​

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

Adjusted FFO Attributable to Common Stockholders

​

​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended September 30,					​	Nine Months Ended September 30,
​	​	2022		****	2021		​	2022		​	​	2021
​	​	​	​	​	​	​	​	​	​	​	​	​
Net income (loss)	****	$	20,488		$	(22,124)	​	$	73,303	​	$	(105,329)
Preferred stock dividends and redemption charges	​	​	(3,351)	​	​	(6,287)	​	​	(10,897)	​	​	(17,289)
Operations held for investment:	​	​	​	​	​	​	​	​	​	​	​	​
Real estate depreciation and amortization	​	​	31,313	​	​	31,959	​	​	92,796	​	​	94,206
Loss (gain) on sale of assets	​	​	—	​	​	12	​	​	(22,946)	​	​	82
Impairment loss	​	​	—	​	​	1,014	​	​	—	​	​	1,014
Noncontrolling interest:	​	​	​	​	​	​	​	​	​	​	​	​
(Income) loss from consolidated joint venture attributable to noncontrolling interest	​	​	—	​	​	(933)	​	​	(3,477)	​	​	1,638
Real estate depreciation and amortization	​	​	—	​	​	(791)	​	​	(1,456)	​	​	(2,407)
FFO attributable to common stockholders	​	​	48,450	​	​	2,850	​	​	127,323	​	​	(28,085)
​	​	​	​	​	​	​	​	​	​	​	​	​
Operations held for investment:	​	​	​	​	​	​	​	​	​	​	​	​
Amortization of deferred stock compensation (1)	​	​	2,230	​	​	3,165	​	​	8,661	​	​	10,576
Real estate amortization of right-of-use assets and obligations	​	​	(288)	​	​	87	​	​	(868)	​	​	249
Amortization of contract intangibles, net	​	​	141	​	​	—	​	​	344	​	​	—
Noncash interest on derivatives, net	​	​	(39)	​	​	(616)	​	​	(2,904)	​	​	(2,194)
Loss (gain) on extinguishment of debt, net	​	​	770	​	​	(61)	​	​	962	​	​	(371)
Prior year property tax adjustments, net	​	​	—	​	​	605	​	​	—	​	​	(1,384)
Hurricane-related losses net of (insurance restoration proceeds)	​	​	—	​	​	1,621	​	​	(2,755)	​	​	1,621
Property-level severance related to sold hotel	​	​	—	​	​	4,562	​	​	—	​	​	4,562
Lawsuit settlement cost	​	​	—	​	​	691	​	​	—	​	​	691
CEO transition costs	​	​	—	​	​	7,976	​	​	—	​	​	7,976
Preferred stock redemption charges	​	​	—	​	​	2,624	​	​	—	​	​	6,640
Noncontrolling interest:	​	​	​	​	​	​	​	​	​	​	​	​
Real estate amortization of right-of-use asset and obligation	​	​	—	​	​	72	​	​	132	​	​	217
Lawsuit settlement cost	​	​	—	​	​	(173)	​	​	—	​	​	(173)
Noncash interest on derivatives, net	​	​	—	​	​	(20)	​	​	—	​	​	(20)
Adjustments to FFO attributable to common stockholders, net	​	​	2,814	​	​	20,533	​	​	3,572	​	​	28,390
​	​	​	​	​	​	​	​	​	​	​	​	​
Adjusted FFO attributable to common stockholders	​	$	51,264	​	$	23,383	​	$	130,895	​	$	305
​	​	​	​	​	​	​	​	​	​	​	​	​
FFO attributable to common stockholders per diluted share	​	$	0.23	​	$	0.01	​	$	0.59	​	$	(0.13)
​	​	​	​	​	​	​	​	​	​	​	​	​
Adjusted FFO attributable to common stockholders per diluted share	​	$	0.24	​	$	0.11	​	$	0.61	​	$	—
​	​	​	​	​	​	​	​	​	​	​	​	​
Basic weighted average shares outstanding	​	​	211,010	​	​	217,709	​	​	213,799	​	​	215,765
Shares associated with unvested restricted stock awards	​	​	594	​	​	296	​	​	350	​	​	287
Diluted weighted average shares outstanding	​	​	211,604	​	​	218,005	​	​	214,149	​	​	216,052

​

(1)	Amortization of deferred stock compensation has been added to the adjustments to FFO attributable to common stockholders, net for the three and nine months ended September 30, 2021 to conform to the current year’s presentation.

​ 11

Sunstone Hotel Investors, Inc.

Non-GAAP Financial Measures

Hotel Adjusted EBITDAre and Margins

(Unaudited and in thousands)

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended September 30,					​	Nine Months Ended September 30,					​
​	​	2022		​	2021		​	2022		​	2021		​
​	​	​	​	​	​	​	​	​	​	​	​	​	​
Comparable Portfolio Adjusted EBITDAre Margin (1)	​	​	30.4%	​	​	23.4%	​	​	31.1%	​	​	15.2%	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total revenues	​	$	244,314	​	$	167,421	​	$	667,909	​	$	335,264	​
Non-hotel revenues (2)	​	​	(19)	​	​	(22)	​	​	(57)	​	​	(66)	​
Reimbursements to offset net losses (3)	​	​	—	​	​	(1,662)	​	​	—	​	​	(8,773)	​
Total Actual Hotel Revenues	​	​	244,295	​	​	165,737	​	​	667,852	​	​	326,425	​
Prior ownership hotel revenues (4)	​	​	—	​	​	6,802	​	​	22,637	​	​	23,631	​
Non-comparable hotel revenues (5)	​	​	(24,726)	​	​	(15,381)	​	​	(70,552)	​	​	(25,433)	​
Sold hotel revenues (6)	​	​	—	​	​	(19,607)	​	​	(3,234)	​	​	(33,505)	​
Comparable Portfolio Revenues	​	$	219,569	​	$	137,551	​	$	616,703	​	$	291,118	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net income (loss)	​	$	20,488	​	$	(22,124)	​	$	73,303	​	$	(105,329)	​
Non-hotel revenues (2)	​	​	(19)	​	​	(22)	​	​	(57)	​	​	(66)	​
Reimbursements to offset net losses (3)	​	​	—	​	​	(1,662)	​	​	—	​	​	(8,773)	​
Non-hotel operating expenses, net (7)	​	​	(270)	​	​	(593)	​	​	(1,085)	​	​	(3,902)	​
Taxes assessed on commercial rents (8)	​	​	115	​	​	—	​	​	115	​	​	—	​
Property-level prior year property tax adjustments, net	​	​	—	​	​	605	​	​	—	​	​	379	​
Property-level settlements	​	​	—	​	​	691	​	​	—	​	​	691	​
Property-level settlements related to sold hotel	​	​	—	​	​	—	​	​	—	​	​	58	​
Property-level severance related to sold hotel	​	​	—	​	​	4,562	​	​	—	​	​	4,562	​
Property-level hurricane-related restoration expenses (9)	​	​	—	​	​	1,621	​	​	1,614	​	​	1,621	​
Corporate overhead	​	​	7,879	​	​	15,422	​	​	27,310	​	​	32,066	​
Depreciation and amortization	​	​	31,750	​	​	32,585	​	​	94,003	​	​	96,084	​
Impairment loss	​	​	—	​	​	1,014	​	​	—	​	​	1,014	​
Interest and other (income) loss	​	​	(270)	​	​	(2)	​	​	(4,766)	​	​	356	​
Interest expense	​	​	9,269	​	​	7,983	​	​	20,288	​	​	23,697	​
Gain on sale of assets	​	​	—	​	​	—	​	​	(22,946)	​	​	—	​
Loss (gain) on extinguishment of debt, net	​	​	770	​	​	(61)	​	​	962	​	​	(371)	​
Income tax (benefit) provision, net	​	​	(290)	​	​	25	​	​	(126)	​	​	91	​
Actual Hotel Adjusted EBITDAre	​	​	69,422	​	​	40,044	​	​	188,615	​	​	42,178	​
Prior ownership hotel Adjusted EBITDAre (4)	​	​	—	​	​	464	​	​	8,630	​	​	3,810	​
Non-comparable hotel Adjusted EBITDAre (5)	​	​	(2,593)	​	​	(3,635)	​	​	(7,496)	​	​	(5,248)	​
Sold hotel Adjusted EBITDAre (6)	​	​	—	​	​	(4,742)	​	​	2,172	​	​	3,400	​
Comparable Portfolio Adjusted EBITDAre	​	$	66,829	​	$	32,131	​	$	191,921	​	$	44,140	​

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(1)	Comparable Portfolio Adjusted EBITDAre Margin is calculated as Comparable Portfolio Adjusted EBITDAre divided by Total Comparable Portfolio Revenues.
(2)	Non-hotel revenues include the amortization of any favorable or unfavorable contract intangibles recorded in conjunction with the Company's hotel acquisitions.
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(3)	Reimbursements to offset net losses for the third quarter and first nine months of 2021 include $1.7 million and $8.8 million, respectively, at the Hyatt Regency San Francisco as stipulated by the hotel's operating lease agreement.
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(4)	Prior ownership hotel revenues and Adjusted EBITDAre include results for The Confidante Miami Beach prior to the Company’s acquisition of the hotel in June 2022. The Company obtained prior ownership information from the hotel’s previous owner during the due diligence period before acquiring the hotel. The Company performed a limited review of the information as part of its analysis of the acquisition. The Company determined the amount to include as pro forma depreciation expense based on the hotel’s actual depreciation expense recognized by the Company in June 2022.
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(5)	Non-comparable hotel revenues and Adjusted EBITDAre include results for the Montage Healdsburg and the Four Seasons Resort Napa Valley, acquired in April 2021 and December 2021, respectively.
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(6)	Sold hotel revenues and Adjusted EBITDAre for the first nine months of 2022 include results for the Embassy Suites Chicago and the Hilton Garden Inn Chicago Downtown/Magnificent Mile, sold in March 2022, and the Hyatt Centric Chicago Magnificent Mile, sold in February 2022. Sold hotel revenues and Adjusted EBITDAre for the third quarter and first nine months of 2021 also include results for the Embassy Suites La Jolla and the Renaissance Westchester, sold in December 2021 and October 2021, respectively.
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(7)	Non-hotel operating expenses, net for the third quarters and first nine months of 2022 and 2021 include the following: the amortization of hotel real estate-related right-of-use assets and obligations; the amortization of a favorable management agreement contract intangible prior to the hotel’s sale in March 2022; prior year property tax credits, net related to sold hotels; and finance lease obligation interest – cash ground rent prior to the hotel’s sale in February 2022.
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(8)	Taxes assessed on commercial rents for both the third quarter and first nine months of 2022 include $0.1 million at the Hyatt Regency San Francisco.
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(9)	Property-level hurricane-related restoration expenses for the first nine months of 2022 include a total of $1.6 million incurred at the Hilton New Orleans St. Charles and the JW Marriott New Orleans. Property-level hurricane-related restoration expenses for both the third quarter and first nine months of 2021 include a total of $1.6 million incurred at the Hilton New Orleans St. Charles and the JW Marriott New Orleans.
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13

Exhibit 99.2

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<br><br>​<br><br>Supplemental Financial Information<br><br>For the quarter ended September 30, 2022<br><br>November 8, 2022<br><br>​
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Supplemental Financial Information November 8, 2022

Table of Contents

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Corporate Profile And Disclosures Regarding Non-GAAP Financial Measures								2
Pro Forma Corporate Financial Information								7
Capitalization								21
Property-Level Data And Operating Statistics								24
Property-Level Revenues, Adjusted EBITDAre & Adjusted EBITDAre Margins								30

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Supplemental Financial Information November 8, 2022

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CORPORATE PROFILE AND DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES

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CORPORATE PROFILE AND DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES		​	Page 2
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Supplemental Financial Information November 8, 2022

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About Sunstone

Sunstone Hotel Investors, Inc. (the “Company,” “we,” and “our”) (NYSE: SHO) is a lodging real estate investment trust (“REIT”) that as of November 8, 2022 owns 15 hotels comprised of 7,735 rooms, the majority of which are operated under nationally recognized brands. Sunstone’s strategy is to create long-term stakeholder value through the acquisition, active ownership and disposition of hotels considered to be Long-Term Relevant Real Estate®.

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

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

Company Contacts Bryan Giglia Chief Executive Officer (949) 382-3036

Aaron Reyes Chief Financial Officer (949) 382-3018

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CORPORATE PROFILE AND DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES		​	Page 3
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Supplemental Financial Information November 8, 2022

Non-GAAP Financial Measures

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

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

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

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

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

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CORPORATE PROFILE AND DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES		​	Page 4
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Supplemental Financial Information November 8, 2022

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We adjust EBITDAre and FFO attributable to common stockholders for the following items, which may occur in any period, and refer to these measures as either Adjusted EBITDAre, excluding noncontrolling interest or Adjusted FFO attributable to common stockholders:

●	Amortization of deferred stock compensation: we exclude the noncash expense incurred with the amortization of deferred stock compensation as this expense is based on historical stock prices at the date of grant to our corporate employees and does not reflect the underlying performance of our hotels.
●	Amortization of contract intangibles: we exclude the noncash amortization of any favorable or unfavorable contract intangibles recorded in conjunction with our hotel acquisitions. We exclude the noncash amortization of contract intangibles because it is based on historical cost accounting and is of lesser significance in evaluating our actual performance for the current period.
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●	Gains or losses from debt transactions: we exclude the effect of finance charges and premiums associated with the extinguishment of debt, including the acceleration of deferred financing costs from the original issuance of the debt being redeemed or retired because, like interest expense, their removal helps investors evaluate and compare the results of our operations from period to period by removing the impact of our capital structure.
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●	Acquisition costs: under GAAP, costs associated with acquisitions that meet the definition of a business are expensed in the year incurred. We exclude the effect of these costs because we believe they are not reflective of the ongoing performance of the Company or our hotels.
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●	Cumulative effect of a change in accounting principle: from time to time, the FASB promulgates new accounting standards that require the consolidated statement of operations to reflect the cumulative effect of a change in accounting principle. We exclude these one-time adjustments, which include the accounting impact from prior periods, because they do not reflect our actual performance for that period.
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●	Other adjustments: we exclude other adjustments that we believe are outside the ordinary course of business because we do not believe these costs reflect our actual performance for the period and/or the ongoing operations of our hotels. Such items may include: lawsuit settlement costs; prior year property tax assessments or credits; the write-off of development costs associated with abandoned projects; property-level restructuring, severance and management transition costs; debt resolution costs; lease terminations; property insurance restoration proceeds or uninsured losses; and other nonrecurring identified adjustments.
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In addition, to derive Adjusted EBITDAre, excluding noncontrolling interest we exclude the noncontrolling partner’s pro rata share of the net (income) loss allocated to the Hilton San Diego Bayfront partnership, as well as the noncontrolling partner’s pro rata share of any EBITDAre and Adjusted EBITDAre components (prior to our acquisition of the noncontrolling partner’s ownership interest in the partnership in June 2022). We also exclude the amortization of our right-of-use assets and related lease obligations as these expenses are based on historical cost accounting and do not reflect the actual rent amounts due to the respective lessors or the underlying performance of our hotels. Additionally, we include an adjustment for the cash finance lease expense recorded on the building lease at the Hyatt Centric Chicago Magnificent Mile (prior to the hotel’s sale in February 2022). We determined that the building lease is a finance lease, and, therefore, we include a portion of the lease payment each month in interest expense. We adjust EBITDAre for the finance lease in order to more accurately reflect the actual rent due to the hotel’s lessor in the current period, as well as the operating performance of the hotel. We also exclude the effect of gains and losses on the disposition of undepreciated assets because we believe that including them in Adjusted EBITDAre, excluding noncontrolling interest is not consistent with reflecting the ongoing performance of our assets.

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CORPORATE PROFILE AND DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES		​	Page 5
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Supplemental Financial Information November 8, 2022

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To derive Adjusted FFO attributable to common stockholders, we also exclude the noncash interest on our derivatives and finance lease obligation as we believe that these items are not reflective of our ongoing finance costs. Additionally, we exclude the noncontrolling partner’s pro rata share of any FFO adjustments related to our consolidated Hilton San Diego Bayfront partnership components (prior to our acquisition of the noncontrolling partner’s ownership interest in the partnership in June 2022). We also exclude the real estate amortization of our right-of-use assets and related lease obligations, which includes the amortization of both our finance and operating lease intangibles (with the exception of our corporate operating lease), as these expenses are based on historical cost accounting and do not reflect the actual rent amounts due to the respective lessors or the underlying performance of our hotels. In addition, we exclude preferred stock redemption charges, changes to deferred tax assets, liabilities or valuation allowances, and income tax benefits or provisions associated with the application of net operating loss carryforwards, uncertain tax positions or with the sale of assets other than real estate investments.

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

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

The Total Portfolio consists of all 15 hotels owned by the Company as of September 30, 2022. The Total Portfolio includes both prior ownership results and the Company’s ownership results for The Confidante Miami Beach, acquired by the Company in June 2022. Total Portfolio operating statistics for the first nine months of 2021 include both prior ownership results and the Company’s ownership results for the Montage Healdsburg, acquired in April 2021. The Company obtained prior ownership information from the previous owners of The Confidante Miami Beach and the Montage Healdsburg during the due diligence periods before acquiring the hotels. The Company performed limited reviews of the information as part of its analyses of the acquisitions.

The Comparable Portfolio includes the same 12 hotels owned by the Company during the third quarters and first nine months of 2022, 2021 and 2019 plus both prior ownership results and the Company’s ownership results for The Confidante Miami Beach, acquired by the Company in June 2022.

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

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PRO FORMA CORPORATE FINANCIAL INFORMATION		​	Page 7
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Supplemental Financial Information November 8, 2022

Pro Forma Consolidated Statements of Operations

Q3 2022 – Q4 2021, Trailing 12 Months

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​		Quarter Ended (1)											​	Trailing 12 Months
(Unaudited and in thousands, except per share data)		September 30,		​	June 30,		​	March 31,		​	December 31,		​	Ended
​		2022			2022			2022			2021			September 30, 2022 (1)
Revenues		​	​	​	​	​	​	​	​	​	​	​	​	​	​
Room		$	158,400	​	$	167,194	​	$	115,515	​	$	109,660	​	$	550,769
Food and beverage		​	63,476	​	​	74,307	​	​	42,911	​	​	37,133	​	​	217,827
Other operating		​	22,438	​	​	18,711	​	​	24,360	​	​	20,838	​	​	86,347
Total revenues		​	244,314	​	​	260,212	​	​	182,786	​	​	167,631	​	​	854,943
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Operating Expenses		​	​	​	​	​	​	​	​	​	​	​	​	​	​
Room		​	38,791	​	​	38,626	​	​	30,425	​	​	29,615	​	​	137,457
Food and beverage		​	47,181	​	​	48,304	​	​	34,233	​	​	31,334	​	​	161,052
Other expenses		​	88,746	​	​	87,269	​	​	75,023	​	​	69,235	​	​	320,273
Corporate overhead		​	7,879	​	​	8,717	​	​	10,714	​	​	8,203	​	​	35,513
Depreciation and amortization		​	31,750	​	​	31,720	​	​	31,711	​	​	30,766	​	​	125,947
Impairment loss		​	—	​	​	—	​	​	—	​	​	1,671	​	​	1,671
Total operating expenses		​	214,347	​	​	214,636	​	​	182,106	​	​	170,824	​	​	781,913
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Interest and other income		​	270	​	​	116	​	​	4,380	​	​	13	​	​	4,779
Interest expense		​	(9,269)	​	​	(5,938)	​	​	(4,964)	​	​	(6,440)	​	​	(26,611)
(Loss) gain on extinguishment of debt, net		​	(770)	​	​	21	​	​	(213)	​	​	(292)	​	​	(1,254)
Income (loss) before income taxes		​	20,198	​	​	39,775	​	​	(117)	​	​	(9,912)	​	​	49,944
Income tax benefit (provision), net		​	290	​	​	(28)	​	​	(136)	​	​	(18)	​	​	108
Net income (loss)		$	20,488	​	$	39,747	​	$	(253)	​	$	(9,930)	​	$	50,052
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Total Portfolio Hotel Adjusted EBITDAre (2)		$	69,422	​	$	87,308	​	$	42,687	​	$	38,050	​	$	237,467
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Pro Forma Adjusted EBITDAre (3)		$	63,848	​	$	80,031	​	$	37,103	​	$	34,287	​	$	215,269
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Pro Forma Adjusted FFO attributable to common stockholders (4)		$	51,264	​	$	69,051	​	$	26,183	​	$	23,074	​	$	169,572
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Pro Forma Adjusted FFO attributable to common stockholders per diluted share (4)		$	0.24	​	$	0.33	​	$	0.12	​	$	0.11	​	$	0.80

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PRO FORMA CORPORATE FINANCIAL INFORMATION		​	Page 8
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Supplemental Financial Information November 8, 2022

Pro Forma Consolidated Statements of Operations

Q4 2021 – Q1 2021, FY 2021

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​		Quarter Ended (1)											​	Year Ended (1)
(Unaudited and in thousands, except per share data)		December 31,		​	September 30,		​	June 30,		​	March 31,		​	December 31,
​		2021			2021			2021			2021			2021
Revenues		​	​	​	​	​	​	​	​	​	​	​	​	​	​
Room		$	109,660	​	$	105,973	​	$	82,045	​	$	36,080	​	$	333,758
Food and beverage		​	37,133	​	​	27,739	​	​	17,020	​	​	6,659	​	​	88,551
Other operating		​	20,838	​	​	20,904	​	​	17,162	​	​	11,808	​	​	70,712
Total revenues		​	167,631	​	​	154,616	​	​	116,227	​	​	54,547	​	​	493,021
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Operating Expenses		​	​	​	​	​	​	​	​	​	​	​	​	​	​
Room		​	29,615	​	​	28,216	​	​	21,668	​	​	11,591	​	​	91,090
Food and beverage		​	31,334	​	​	25,975	​	​	17,160	​	​	7,430	​	​	81,899
Other expenses		​	69,235	​	​	65,033	​	​	51,374	​	​	38,142	​	​	223,784
Corporate overhead		​	8,203	​	​	15,422	​	​	9,467	​	​	7,177	​	​	40,269
Depreciation and amortization		​	30,766	​	​	30,196	​	​	30,285	​	​	28,183	​	​	119,430
Impairment losses		​	1,671	​	​	1,014	​	​	—	​	​	—	​	​	2,685
Total operating expenses		​	170,824	​	​	165,856	​	​	129,954	​	​	92,523	​	​	559,157
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Interest and other income (loss)		​	13	​	​	2	​	​	21	​	​	(379)	​	​	(343)
Interest expense		​	(6,440)	​	​	(7,019)	​	​	(7,100)	​	​	(6,693)	​	​	(27,252)
(Loss) gain on extinguishment of debt, net		​	(292)	​	​	61	​	​	88	​	​	222	​	​	79
Loss before income taxes		​	(9,912)	​	​	(18,196)	​	​	(20,718)	​	​	(44,826)	​	​	(93,652)
Income tax provision, net		​	(18)	​	​	(25)	​	​	(23)	​	​	(43)	​	​	(109)
Net loss		$	(9,930)	​	$	(18,221)	​	$	(20,741)	​	$	(44,869)	​	$	(93,761)
​		​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total Portfolio Hotel Adjusted EBITDAre (2)		$	38,050	​	$	35,766	​	$	21,533	​	$	(7,911)	​	$	87,438
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Pro Forma Adjusted EBITDAre (3)		$	34,287	​	$	33,090	​	$	19,886	​	$	(8,513)	​	$	78,750
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Pro Forma Adjusted FFO attributable to common stockholders (4)		$	23,074	​	$	21,876	​	$	8,366	​	$	(19,515)	​	$	33,801
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Pro Forma Adjusted FFO attributable to common stockholders per diluted share (4)		$	0.11	​	$	0.10	​	$	0.04	​	$	(0.09)	​	$	0.16

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Supplemental Financial Information November 8, 2022

Pro Forma Consolidated Statements of Operations

Q4 2019 – Q1 2019, FY 2019

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​		Quarter Ended (1)											​	Year Ended (1)
(Unaudited and in thousands, except per share data)		December 31,		​	September 30,		​	June 30,		​	March 31,		​	December 31,
​		2019			2019			2019			2019			2019
Revenues		​	​	​	​	​	​	​	​	​	​	​	​	​	​
Room		$	140,388	​	$	145,477	​	$	154,320	​	$	140,689	​	$	580,874
Food and beverage		​	59,112	​	​	53,525	​	​	67,089	​	​	63,338	​	​	243,064
Other operating		​	17,415	​	​	17,523	​	​	16,271	​	​	15,124	​	​	66,333
Total revenues		​	216,915	​	​	216,525	​	​	237,680	​	​	219,151	​	​	890,271
​		​	​	​	​	​	​	​	​	​	​	​	​	​	​
Operating Expenses		​	​	​	​	​	​	​	​	​	​	​	​	​	​
Room		​	36,422	​	​	37,604	​	​	37,604	​	​	35,979	​	​	147,609
Food and beverage		​	40,345	​	​	38,763	​	​	42,286	​	​	41,704	​	​	163,098
Other expenses		​	73,100	​	​	71,415	​	​	73,549	​	​	73,328	​	​	291,392
Corporate overhead		​	7,275	​	​	7,395	​	​	8,078	​	​	7,516	​	​	30,264
Depreciation and amortization		​	28,231	​	​	28,315	​	​	27,684	​	​	27,541	​	​	111,771
Total operating expenses		​	185,373	​	​	183,492	​	​	189,201	​	​	186,068	​	​	744,134
​		​	​	​	​	​	​	​	​	​	​	​	​	​	​
Interest and other income		​	3,060	​	​	3,762	​	​	4,811	​	​	4,924	​	​	16,557
Interest expense		​	(6,880)	​	​	(9,074)	​	​	(11,634)	​	​	(10,149)	​	​	(37,737)
Income before income taxes		​	27,722	​	​	27,721	​	​	41,656	​	​	27,858	​	​	124,957
Income tax (provision) benefit, net		​	(1,034)	​	​	749	​	​	(2,676)	​	​	3,112	​	​	151
Net income		$	26,688	​	$	28,470	​	$	38,980	​	$	30,970	​	$	125,108
​		​	​	​	​	​	​	​	​	​	​	​	​	​	​
Comparable Portfolio Hotel Adjusted EBITDAre (5)		$	67,146	​	$	68,778	​	$	84,305	​	$	68,415	​	$	288,644
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pro Forma Adjusted EBITDAre (3)		$	64,653	​	$	66,936	​	$	82,652	​	$	67,767	​	$	282,008
​		​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pro Forma Adjusted FFO attributable to common stockholders (4)		$	53,324	​	$	56,618	​	$	71,082	​	$	55,805	​	$	236,829
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pro Forma Adjusted FFO attributable to common stockholders per diluted share (4)		$	0.25	​	$	0.27	​	$	0.34	​	$	0.27	​	$	1.13

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*Footnotes on page 11

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PRO FORMA CORPORATE FINANCIAL INFORMATION		​	Page 10
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Supplemental Financial Information November 8, 2022

Pro Forma Consolidated Statements of Operations

Footnotes

(1)	Excludes results for the Renaissance Westchester, the Embassy Suites La Jolla and the Hyatt Centric Chicago Magnificent Mile due to their sales in October 2021, December 2021 and February 2022, respectively, along with the Embassy Suites Chicago and the Hilton Garden Inn Chicago Downtown/Magnificent Mile due to their sale in March 2022. Includes prior ownership results for The Confidante Miami Beach acquired by the Company in June 2022, adjusted for the Company's pro forma depreciation expense. Pro Forma Consolidated Statements of Operations for each of the quarters and the year ended December 31, 2019 also excludes 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, as well as 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, and the elimination of interest expense on the mortgage loan secured by the Renaissance Washington DC due to its repayment in December 2020.
(2)	Total Portfolio Hotel Adjusted EBITDAre reconciliations for the third quarters and first nine months of 2022 and 2021 can be found later in this presentation. Additional details can be found in our earnings release, furnished in Exhibit 99.1 to our 8-K filed on November 8, 2022.
---	---
(3)	Pro Forma Adjusted EBITDAre reconciliations for each of the quarters, years and the Trailing 12 Months included in this presentation can be found in the following pages and reflect the adjustments noted in Footnote 1 above, along with the elimination of noncontrolling interest due to the Company's acquisition of the outside 25% ownership interest in the joint venture that owned the Hilton San Diego Bayfront in June 2022.
---	---
(4)	Pro Forma Adjusted FFO attributable to common stockholders and Pro Forma Adjusted FFO attributable to common stockholders per diluted share reconciliations for each of the quarters, years and the Trailing 12 Months included in this presentation can be found in the following pages and reflect the adjustments noted in Footnotes 1 and 3 above, along with repurchases totaling 3,783,936 shares of common stock in the second, third and fourth quarters of 2019, 9,770,081 shares of common stock in the first quarter of 2020 and 7,995,560 shares of common stock in the first, second and third quarters of 2022, partially offset by issuances totaling 2,913,682 shares of common stock in the second quarter of 2021.
---	---
(5)	Comparable Portfolio Hotel Adjusted EBITDAre reconciliations for the third quarter and first nine months of 2019 can be found later in this presentation.
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PRO FORMA CORPORATE FINANCIAL INFORMATION		​	Page 11
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Supplemental Financial Information November 8, 2022

Pro Forma Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre

Q3 2022 – Q4 2021, Trailing 12 Months

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	Quarter Ended											​	Trailing 12 Months
​	September 30,		​	June 30,		​	March 31,		​	December 31,		​	Ended
(In thousands)	2022		​	2022		​	2022		​	2021		​	September 30, 2022
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net income	$	20,488	​	$	37,692	​	$	15,123	​	$	138,324	​	$	211,627
Operations held for investment:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Depreciation and amortization	​	31,750	​	​	30,893	​	​	31,360	​	​	32,598	​	​	126,601
Interest expense	​	9,269	​	​	5,938	​	​	5,081	​	​	7,201	​	​	27,489
Income tax (benefit) provision, net	​	(290)	​	​	28	​	​	136	​	​	18	​	​	(108)
Gain on sale of assets	​	—	​	​	—	​	​	(22,946)	​	​	(152,524)	​	​	(175,470)
Impairment loss	​	—	​	​	—	​	​	—	​	​	1,671	​	​	1,671
EBITDAre	​	61,217	​	​	74,551	​	​	28,754	​	​	27,288	​	​	191,810
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Operations held for investment:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Amortization of deferred stock compensation	​	2,230	​	​	2,853	​	​	3,578	​	​	2,212	​	​	10,873
Amortization of right-of-use assets and obligations	​	(350)	​	​	(354)	​	​	(346)	​	​	(340)	​	​	(1,390)
Amortization of contract intangibles, net	​	(19)	​	​	(18)	​	​	(6)	​	​	—	​	​	(43)
Finance lease obligation interest - cash ground rent	​	—	​	​	—	​	​	(117)	​	​	(351)	​	​	(468)
Property-level severance	​	—	​	​	—	​	​	—	​	​	(284)	​	​	(284)
Loss (gain) on extinguishment of debt, net	​	770	​	​	(21)	​	​	213	​	​	428	​	​	1,390
Lawsuit settlement cost	​	—	​	​	—	​	​	—	​	​	21	​	​	21
CEO transition costs	​	—	​	​	—	​	​	—	​	​	815	​	​	815
Hurricane-related losses net of (insurance restoration proceeds)	​	—	​	​	138	​	​	(2,893)	​	​	2,612	​	​	(143)
Noncontrolling interest:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Income from consolidated joint venture attributable to noncontrolling interest	​	—	​	​	(2,343)	​	​	(1,134)	​	​	(335)	​	​	(3,812)
Depreciation and amortization	​	—	​	​	(666)	​	​	(790)	​	​	(791)	​	​	(2,247)
Interest expense	​	—	​	​	(206)	​	​	(168)	​	​	(160)	​	​	(534)
Amortization of right-of-use asset and obligation	​	—	​	​	60	​	​	72	​	​	73	​	​	205
Lawsuit settlement cost	​	—	​	​	—	​	​	—	​	​	(5)	​	​	(5)
Adjustments to EBITDAre**, net**	​	2,631	​	​	(557)	​	​	(1,591)	​	​	3,895	​	​	4,378
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Adjusted EBITDAre**, excluding noncontrolling interest**	​	63,848	​	​	73,994	​	​	27,163	​	​	31,183	​	​	196,188
Sold hotel Adjusted EBITDAre (1)	​	—	​	​	—	​	​	2,172	​	​	(1,434)	​	​	738
Acquisition hotel Adjusted EBITDAre (2)	​	—	​	​	6,037	​	​	7,768	​	​	4,538	​	​	18,343
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pro Forma Adjusted EBITDAre	$	63,848	​	$	80,031	​	$	37,103	​	$	34,287	​	$	215,269

*Footnotes on page 14

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PRO FORMA CORPORATE FINANCIAL INFORMATION		​	Page 12
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Supplemental Financial Information November 8, 2022

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

Q3 2022 – Q4 2021, Trailing 12 Months

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	Quarter Ended											​	Trailing 12 Months
​	September 30,		​	June 30,		​	March 31,		​	December 31,		​	Ended
(In thousands, except per share data)	2022		​	2022		​	2022		​	2021		​	September 30, 2022
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net income	$	20,488	​	$	37,692	​	$	15,123	​	$	138,324	​	$	211,627
Preferred stock dividends	​	(3,351)	​	​	(3,773)	​	​	(3,773)	​	​	(3,349)	​	​	(14,246)
Operations held for investment:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Real estate depreciation and amortization	​	31,313	​	​	30,456	​	​	31,027	​	​	31,976	​	​	124,772
Gain on sale of assets	​	—	​	​	—	​	​	(22,946)	​	​	(152,524)	​	​	(175,470)
Impairment loss	​	—	​	​	—	​	​	—	​	​	1,671	​	​	1,671
Noncontrolling interest:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Income from consolidated joint venture attributable to noncontrolling interest	​	—	​	​	(2,343)	​	​	(1,134)	​	​	(335)	​	​	(3,812)
Real estate depreciation and amortization	​	—	​	​	(666)	​	​	(790)	​	​	(791)	​	​	(2,247)
FFO attributable to common stockholders	​	48,450	​	​	61,366	​	​	17,507	​	​	14,972	​	​	142,295
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Operations held for investment:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Amortization of deferred stock compensation	​	2,230	​	​	2,853	​	​	3,578	​	​	2,212	​	​	10,873
Real estate amortization of right-of-use assets and obligations	​	(288)	​	​	(294)	​	​	(286)	​	​	87	​	​	(781)
Amortization of contract intangibles, net	​	141	​	​	143	​	​	60	​	​	—	​	​	344
Noncash interest on derivatives, net	​	(39)	​	​	(1,023)	​	​	(1,842)	​	​	(1,211)	​	​	(4,115)
Property-level severance	​	—	​	​	—	​	​	—	​	​	(284)	​	​	(284)
Loss (gain) on extinguishment of debt, net	​	770	​	​	(21)	​	​	213	​	​	428	​	​	1,390
Lawsuit settlement cost	​	—	​	​	—	​	​	—	​	​	21	​	​	21
CEO transition costs	​	—	​	​	—	​	​	—	​	​	815	​	​	815
Hurricane-related losses net of (insurance restoration proceeds)	​	—	​	​	138	​	​	(2,893)	​	​	2,612	​	​	(143)
Noncontrolling interest:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Real estate amortization of right-of-use asset and obligation	​	—	​	​	60	​	​	72	​	​	73	​	​	205
Noncash interest on derivatives, net	​	—	​	​	(2)	​	​	2	​	​	1	​	​	1
Lawsuit settlement cost	​	—	​	​	—	​	​	—	​	​	(5)	​	​	(5)
Adjustments to FFO attributable to common stockholders, net	​	2,814	​	​	1,854	​	​	(1,096)	​	​	4,749	​	​	8,321
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Adjusted FFO attributable to common stockholders	​	51,264	​	​	63,220	​	​	16,411	​	​	19,721	​	​	150,616
Sold hotel Adjusted FFO (1)	​	—	​	​	—	​	​	2,172	​	​	(1,024)	​	​	1,148
Acquisition hotel Adjusted FFO (2)	​	—	​	​	5,831	​	​	7,600	​	​	4,377	​	​	17,808
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pro Forma Adjusted FFO attributable to common stockholders	$	51,264	​	$	69,051	​	$	26,183	​	$	23,074	​	$	169,572
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pro Forma Adjusted FFO attributable to common stockholders per diluted share	$	0.24	​	$	0.33	​	$	0.12	​	$	0.11	​	$	0.80
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Basic weighted average shares outstanding	​	211,010	​	​	213,183	​	​	217,271	​	​	217,870	​	​	214,834
Shares associated with unvested restricted stock awards	​	594	​	​	354	​	​	305	​	​	445	​	​	425
Diluted weighted average shares outstanding	​	211,604	​	​	213,537	​	​	217,576	​	​	218,315	​	​	215,258
Equity transactions (3)	​	(729)	​	​	(2,918)	​	​	(7,254)	​	​	(7,996)	​	​	(4,724)
Pro Forma diluted weighted average shares outstanding	​	210,875	​	​	210,619	​	​	210,322	​	​	210,319	​	​	210,534

*Footnotes on page 14

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PRO FORMA CORPORATE FINANCIAL INFORMATION		​	Page 13
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Supplemental Financial Information November 8, 2022

Pro Forma Reconciliation of Net Income to EBITDAre**, Adjusted EBITDAre,**

FFO and Adjusted FFO Attributable to Common Stockholders

Q3 2022 – Q4 2021, Trailing 12 Months Footnotes

(1)	Sold Hotel Adjusted EBITDAre and Adjusted FFO include results for the Renaissance Westchester, the Embassy Suites La Jolla and the Hyatt Centric Chicago Magnificent Mile sold in October 2021, December 2021 and February 2022, respectively, along with the Embassy Suites Chicago and the Hilton Garden Inn Chicago Downtown/Magnificent Mile sold in March 2022.
(2)	Acquisition hotel Adjusted EBITDAre and Adjusted FFO include prior ownership results for The Confidante Miami Beach acquired by the Company in June 2022, along with the elimination of noncontrolling interest due to the Company's acquisition of the outside 25% ownership interest in the joint venture that owned the Hilton San Diego Bayfront in June 2022.
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(3)	Equity Transactions represent repurchases totaling 3,879,025, 3,235,958 and 880,577 shares of common stock in the first, second and third quarters of 2022, respectively.
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PRO FORMA CORPORATE FINANCIAL INFORMATION		​	Page 14
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Supplemental Financial Information November 8, 2022

Pro Forma Reconciliation of Net Income (Loss) to EBITDAre and Adjusted EBITDAre ****

Q4 2021 – Q1 2021, FY 2021

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	Quarter Ended											​	Year Ended
​	December 31,		​	September 30,		​	June 30,		​	March 31,		​	December 31,
(In thousands)	2021		​	2021		​	2021		​	2021		​	2021
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net income (loss)	$	138,324	​	$	(22,124)	​	$	(27,918)	​	$	(55,287)	​	$	32,995
Operations held for investment:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Depreciation and amortization	​	32,598	​	​	32,585	​	​	32,729	​	​	30,770	​	​	128,682
Interest expense	​	7,201	​	​	7,983	​	​	8,065	​	​	7,649	​	​	30,898
Income tax provision, net	​	18	​	​	25	​	​	23	​	​	43	​	​	109
(Gain) loss on sale of assets, net	​	(152,524)	​	​	12	​	​	—	​	​	70	​	​	(152,442)
Impairment losses	​	1,671	​	​	1,014	​	​	—	​	​	—	​	​	2,685
EBITDAre	​	27,288	​	​	19,495	​	​	12,899	​	​	(16,755)	​	​	42,927
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Operations held for investment:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Amortization of deferred stock compensation	​	2,212	​	​	3,165	​	​	4,659	​	​	2,752	​	​	12,788
Amortization of right-of-use assets and obligations	​	(340)	​	​	(335)	​	​	(338)	​	​	(331)	​	​	(1,344)
Finance lease obligation interest - cash ground rent	​	(351)	​	​	(351)	​	​	(351)	​	​	(351)	​	​	(1,404)
Property-level severance	​	(284)	​	​	—	​	​	—	​	​	—	​	​	(284)
Property-level severance related to sold hotels	​	—	​	​	4,562	​	​	—	​	​	—	​	​	4,562
Loss (gain) on extinguishment of debt, net	​	428	​	​	(61)	​	​	(88)	​	​	(222)	​	​	57
Prior year property tax adjustments, net	​	—	​	​	605	​	​	(1,162)	​	​	(827)	​	​	(1,384)
Lawsuit settlement cost	​	21	​	​	691	​	​	—	​	​	—	​	​	712
CEO transition costs	​	815	​	​	7,976	​	​	—	​	​	—	​	​	8,791
Hurricane-related losses	​	2,612	​	​	1,621	​	​	—	​	​	—	​	​	4,233
Noncontrolling interest:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
(Income) loss from consolidated joint venture attributable to noncontrolling interest	​	(335)	​	​	(933)	​	​	596	​	​	1,975	​	​	1,303
Depreciation and amortization	​	(791)	​	​	(791)	​	​	(806)	​	​	(810)	​	​	(3,198)
Interest expense	​	(160)	​	​	(181)	​	​	(159)	​	​	(161)	​	​	(661)
Amortization of right-of-use asset and obligation	​	73	​	​	72	​	​	73	​	​	72	​	​	290
Lawsuit settlement cost	​	(5)	​	​	(173)	​	​	—	​	​	—	​	​	(178)
Adjustments to EBITDAre**, net**	​	3,895	​	​	15,867	​	​	2,424	​	​	2,097	​	​	24,283
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Adjusted EBITDAre**, excluding noncontrolling interest**	​	31,183	​	​	35,362	​	​	15,323	​	​	(14,658)	​	​	67,210
Sold hotel Adjusted EBITDAre (1)	​	(1,434)	​	​	(4,742)	​	​	2,391	​	​	5,751	​	​	1,966
Acquisition hotel Adjusted EBITDAre (2)	​	4,538	​	​	2,470	​	​	2,172	​	​	394	​	​	9,574
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pro Forma Adjusted EBITDAre	$	34,287	​	$	33,090	​	$	19,886	​	$	(8,513)	​	$	78,750

*Footnotes on page 17

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PRO FORMA CORPORATE FINANCIAL INFORMATION		​	Page 15
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Supplemental Financial Information November 8, 2022

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

Q4 2021 – Q1 2021, FY 2021

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	Quarter Ended											​	Year Ended
​	December 31,		​	September 30,		​	June 30,		​	March 31,		​	December 31,
(In thousands, except per share data)	2021		​	2021		​	2021		​	2021		​	2021
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net income (loss)	$	138,324	​	$	(22,124)	​	$	(27,918)	​	$	(55,287)	​	$	32,995
Preferred stock dividends and redemption charges	​	(3,349)	​	​	(6,287)	​	​	(7,795)	​	​	(3,207)	​	​	(20,638)
Operations held for investment:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Real estate depreciation and amortization	​	31,976	​	​	31,959	​	​	32,104	​	​	30,143	​	​	126,182
(Gain) loss on sale of assets, net	​	(152,524)	​	​	12	​	​	—	​	​	70	​	​	(152,442)
Impairment losses	​	1,671	​	​	1,014	​	​	—	​	​	—	​	​	2,685
Noncontrolling interest:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
(Income) loss from consolidated joint venture attributable to noncontrolling interest	​	(335)	​	​	(933)	​	​	596	​	​	1,975	​	​	1,303
Real estate depreciation and amortization	​	(791)	​	​	(791)	​	​	(806)	​	​	(810)	​	​	(3,198)
FFO attributable to common stockholders	​	14,972	​	​	2,850	​	​	(3,819)	​	​	(27,116)	​	​	(13,113)
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Operations held for investment:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Amortization of deferred stock compensation	​	2,212	​	​	3,165	​	​	4,659	​	​	2,752	​	​	12,788
Real estate amortization of right-of-use assets and obligations	​	87	​	​	87	​	​	77	​	​	85	​	​	336
Noncash interest on derivatives, net	​	(1,211)	​	​	(616)	​	​	(709)	​	​	(869)	​	​	(3,405)
Property-level severance	​	(284)	​	​	—	​	​	—	​	​	—	​	​	(284)
Property-level severance related to sold hotels	​	—	​	​	4,562	​	​	—	​	​	—	​	​	4,562
Loss (gain) on extinguishment of debt, net	​	428	​	​	(61)	​	​	(88)	​	​	(222)	​	​	57
Prior year property tax adjustments, net	​	—	​	​	605	​	​	(1,162)	​	​	(827)	​	​	(1,384)
Lawsuit settlement cost	​	21	​	​	691	​	​	—	​	​	—	​	​	712
Preferred stock redemption charges	​	—	​	​	2,624	​	​	4,016	​	​	—	​	​	6,640
CEO transition costs	​	815	​	​	7,976	​	​	—	​	​	—	​	​	8,791
Hurricane-related losses	​	2,612	​	​	1,621	​	​	—	​	​	—	​	​	4,233
Noncontrolling interest:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Real estate amortization of right-of-use asset and obligation	​	73	​	​	72	​	​	73	​	​	72	​	​	290
Noncash interest on derivatives, net	​	1	​	​	(20)	​	​	—	​	​	—	​	​	(19)
Lawsuit settlement cost	​	(5)	​	​	(173)	​	​	—	​	​	—	​	​	(178)
Adjustments to FFO attributable to common stockholders, net	​	4,749	​	​	20,533	​	​	6,866	​	​	991	​	​	33,139
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Adjusted FFO attributable to common stockholders	​	19,721	​	​	23,383	​	​	3,047	​	​	(26,125)	​	​	20,026
Sold hotel Adjusted FFO (1)	​	(1,024)	​	​	(4,129)	​	​	3,005	​	​	6,356	​	​	4,208
Acquisition hotel Adjusted FFO (2)	​	4,377	​	​	2,309	​	​	2,013	​	​	233	​	​	8,932
Equity transactions (3)	​	—	​	​	313	​	​	301	​	​	21	​	​	635
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pro Forma Adjusted FFO attributable to common stockholders	$	23,074	​	$	21,876	​	$	8,366	​	$	(19,515)	​	$	33,801
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pro Forma Adjusted FFO attributable to common stockholders per diluted share	$	0.11	​	$	0.10	​	$	0.04	​	$	(0.09)	​	$	0.16
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Basic weighted average shares outstanding	​	217,870	​	​	217,709	​	​	215,113	​	​	214,438	​	​	216,296
Shares associated with unvested restricted stock awards	​	445	​	​	296	​	​	352	​	​	210	​	​	326
Diluted weighted average shares outstanding	​	218,315	​	​	218,005	​	​	215,465	​	​	214,648	​	​	216,622
Equity transactions (3)	​	(7,996)	​	​	(7,996)	​	​	(5,526)	​	​	(5,082)	​	​	(6,662)
Pro Forma diluted weighted average shares outstanding	​	210,319	​	​	210,009	​	​	209,939	​	​	209,566	​	​	209,960

*Footnotes on page 17

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PRO FORMA CORPORATE FINANCIAL INFORMATION		​	Page 16
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Supplemental Financial Information November 8, 2022

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

FFO and Adjusted FFO Attributable to Common Stockholders

Q4 2021 – Q1 2021, FY 2021 Footnotes

(1)	Sold hotel Adjusted EBITDAre and Adjusted FFO include results for the Renaissance Westchester, the Embassy Suites La Jolla and the Hyatt Centric Chicago Magnificent Mile sold in October 2021, December 2021 and February 2022, respectively, along with the Embassy Suites Chicago and the Hilton Garden Inn Chicago Downtown/Magnificent Mile sold in March 2022.
(2)	Acquisition hotel Adjusted EBITDAre and Adjusted FFO include prior ownership results for The Confidante Miami Beach acquired by the Company in June 2022, along with the elimination of noncontrolling interest due to the Company's acquisition of the outside 25% ownership interest in the joint venture that owned the Hilton San Diego Bayfront in June 2022.
---	---
(3)	Equity Transactions represent the reduction in preferred stock dividends due to the redemptions of the 6.95% Series E and 6.45% Series F Cumulative Redeemable Preferred Stocks in June 2021 and August 2021, respectively, offset by the issuances of the 6.125% Series H and 5.70% Series I Cumulative Redeemable Preferred Stocks in May 2021 and July 2021, respectively. It also includes issuances totaling 2,913,682 shares of common stock in the second quarter of 2021 and repurchases totaling 7,995,560 shares of common stock in the first, second and third quarters of 2022.
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PRO FORMA CORPORATE FINANCIAL INFORMATION		​	Page 17
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Supplemental Financial Information November 8, 2022

Pro Forma Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre

Q4 2019 – Q1 2019, FY 2019

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	Quarter Ended											​	Year Ended
​	December 31,		​	September 30,		​	June 30,		​	March 31,		​	December 31,
(In thousands)	2019		​	2019		​	2019		​	2019		​	2019
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net income	$	45,414	​	$	33,545	​	$	45,918	​	$	17,916	​	$	142,793
Operations held for investment:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Depreciation and amortization	​	37,264	​	​	37,573	​	​	36,524	​	​	36,387	​	​	147,748
Interest expense	​	10,822	​	​	13,259	​	​	15,816	​	​	14,326	​	​	54,223
Income tax provision (benefit), net	​	1,034	​	​	(749)	​	​	2,676	​	​	(3,112)	​	​	(151)
Gain on sale of assets	​	(42,935)	​	​	—	​	​	—	​	​	—	​	​	(42,935)
Impairment loss	​	24,713	​	​	—	​	​	—	​	​	—	​	​	24,713
EBITDAre	​	76,312	​	​	83,628	​	​	100,934	​	​	65,517	​	​	326,391
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Operations held for investment:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Amortization of deferred stock compensation	​	2,145	​	​	2,146	​	​	2,900	​	​	2,122	​	​	9,313
Amortization of right-of-use assets and obligations	​	(259)	​	​	(253)	​	​	(251)	​	​	(19)	​	​	(782)
Finance lease obligation interest - cash ground rent	​	(407)	​	​	(589)	​	​	(590)	​	​	(589)	​	​	(2,175)
Prior year property tax adjustments, net	​	(121)	​	​	(9)	​	​	109	​	​	189	​	​	168
Prior owner contingency funding	​	—	​	​	—	​	​	(900)	​	​	—	​	​	(900)
Noncontrolling interest:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Income from consolidated joint venture attributable to noncontrolling interest	​	(998)	​	​	(2,508)	​	​	(1,955)	​	​	(1,599)	​	​	(7,060)
Depreciation and amortization	​	(803)	​	​	(793)	​	​	(640)	​	​	(639)	​	​	(2,875)
Interest expense	​	(476)	​	​	(532)	​	​	(558)	​	​	(560)	​	​	(2,126)
Amortization of right-of-use asset and obligation	​	73	​	​	72	​	​	73	​	​	72	​	​	290
Adjustments to EBITDAre**, net**	​	(846)	​	​	(2,466)	​	​	(1,812)	​	​	(1,023)	​	​	(6,147)
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Adjusted EBITDAre**, excluding noncontrolling interest**	​	75,466	​	​	81,162	​	​	99,122	​	​	64,494	​	​	320,244
Sold/Disposed hotel Adjusted EBITDAre (1)	​	(15,066)	​	​	(17,992)	​	​	(21,581)	​	​	(3,428)	​	​	(58,067)
Acquisition hotel Adjusted EBITDAre (2)	​	4,253	​	​	3,766	​	​	5,111	​	​	6,701	​	​	19,831
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pro Forma Adjusted EBITDAre	$	64,653	​	$	66,936	​	$	82,652	​	$	67,767	​	$	282,008

*Footnotes on Page 20

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PRO FORMA CORPORATE FINANCIAL INFORMATION		​	Page 18
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Supplemental Financial Information November 8, 2022

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

Q4 2019 – Q1 2019, FY 2019

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	Quarter Ended											​	Year Ended
​	December 31,		​	September 30,		​	June 30,		​	March 31,		​	December 31,
(In thousands, except per share data)	2019		​	2019		​	2019		​	2019		​	2019
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net income	$	45,414	​	$	33,545	​	$	45,918	​	$	17,916	​	$	142,793
Preferred stock dividends	​	(3,208)	​	​	(3,208)	​	​	(3,207)	​	​	(3,207)	​	​	(12,830)
Operations held for investment:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Real estate depreciation and amortization	​	36,639	​	​	36,951	​	​	35,900	​	​	35,770	​	​	145,260
Gain on sale of assets	​	(42,935)	​	​	—	​	​	—	​	​	—	​	​	(42,935)
Impairment loss	​	24,713	​	​	—	​	​	—	​	​	—	​	​	24,713
Noncontrolling interest:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Income from consolidated joint venture attributable to noncontrolling interest	​	(998)	​	​	(2,508)	​	​	(1,955)	​	​	(1,599)	​	​	(7,060)
Real estate depreciation and amortization	​	(803)	​	​	(793)	​	​	(640)	​	​	(639)	​	​	(2,875)
FFO attributable to common stockholders	​	58,822	​	​	63,987	​	​	76,016	​	​	48,241	​	​	247,066
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Operations held for investment:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Amortization of deferred stock compensation	​	2,145	​	​	2,146	​	​	2,900	​	​	2,122	​	​	9,313
Real estate amortization of right-of-use assets and obligations	​	147	​	​	146	​	​	146	​	​	151	​	​	590
Noncash interest on derivatives and finance lease obligations, net	​	(857)	​	​	1,155	​	​	3,634	​	​	2,119	​	​	6,051
Prior year property tax adjustments, net	​	(121)	​	​	(9)	​	​	109	​	​	189	​	​	168
Prior owner contingency funding	​	—	​	​	—	​	​	(900)	​	​	—	​	​	(900)
Noncash income tax provision (benefit), net	​	934	​	​	390	​	​	2,648	​	​	(3,284)	​	​	688
Noncontrolling interest:	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Real estate amortization of right-of-use asset and obligation	​	73	​	​	72	​	​	73	​	​	72	​	​	290
Adjustments to FFO attributable to common stockholders, net	​	2,321	​	​	3,900	​	​	8,610	​	​	1,369	​	​	16,200
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Adjusted FFO attributable to common stockholders	​	61,143	​	​	67,887	​	​	84,626	​	​	49,610	​	​	263,266
Sold/Disposed hotel Adjusted FFO (1)	​	(13,225)	​	​	(16,144)	​	​	(19,747)	​	​	(1,608)	​	​	(50,724)
Acquisition hotel Adjusted FFO (2)	​	3,704	​	​	3,162	​	​	4,480	​	​	6,069	​	​	17,415
Debt and equity transactions (3)	​	1,702	​	​	1,713	​	​	1,723	​	​	1,734	​	​	6,872
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pro Forma Adjusted FFO attributable to common stockholders	$	53,324	​	$	56,618	​	$	71,082	​	$	55,805	​	$	236,829
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pro Forma Adjusted FFO attributable to common stockholders per diluted share	$	0.25	​	$	0.27	​	$	0.34	​	$	0.27	​	$	1.13
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Basic weighted average shares outstanding	​	223,638	​	​	224,530	​	​	227,389	​	​	227,219	​	​	225,681
Shares associated with unvested restricted stock awards	​	448	​	​	253	​	​	145	​	​	260	​	​	276
Diluted weighted average shares outstanding	​	224,086	​	​	224,783	​	​	227,534	​	​	227,479	​	​	225,957
Equity transactions (3)	​	(14,853)	​	​	(15,745)	​	​	(18,622)	​	​	(18,636)	​	​	(16,950)
Pro Forma diluted weighted average shares outstanding	​	209,233	​	​	209,038	​	​	208,912	​	​	208,843	​	​	209,007

*Footnotes on Page 20

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PRO FORMA CORPORATE FINANCIAL INFORMATION		​	Page 19
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Supplemental Financial Information November 8, 2022

Pro Forma Reconciliation of Net Income to EBITDAre**, Adjusted EBITDAre,**

FFO and Adjusted FFO Attributable to Common Stockholders

Q4 2019 – Q1 2019, FY 2019 Footnotes

​

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(1)	Sold/Disposed hotel Adjusted EBITDAre and Adjusted FFO include results for the Courtyard by Marriott Los Angeles, the Renaissance Harborplace, the Renaissance Los Angeles Airport, the Renaissance Westchester, the Embassy Suites La Jolla and the Hyatt Centric Chicago Magnificent Mile sold in October 2019, July 2020, December 2020, October 2021, December 2021 and February 2022, respectively, along with the Embassy Suites Chicago and Hilton Garden Inn Chicago Downtown/Magnificent Mile sold in March 2022. In addition, includes 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)	Acquisition hotel Adjusted EBITDAre and Adjusted FFO include prior ownership results for The Confidante Miami Beach acquired by the Company in June 2022, along with the elimination of noncontrolling interest due to the Company's acquisition of the outside 25% ownership interest in the joint venture that owned the Hilton San Diego Bayfront in June 2022.
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(3)	Debt and Equity Transactions represent the reduction in interest expense on the mortgage loan secured by the Renaissance Washington DC due to its repayment in December 2020, along with the reduction in preferred stock dividends due to the redemptions of the 6.95% Series E and 6.45% Series F Cumulative Redeemable Preferred Stocks in June 2021 and August 2021, respectively, offset by the issuances of the 6.125% Series H and 5.70% Series I Cumulative Redeemable Preferred Stocks in May 2021 and July 2021, respectively. It also includes repurchases totaling 3,783,936 shares of common stock in the second, third and fourth quarters of 2019, 9,770,081 shares of common stock in the first quarter of 2020 and 7,995,560 shares of common stock in the first, second and third quarters of 2022, partially offset by issuances totaling 2,913,682 shares of common stock in the second quarter of 2021.
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PRO FORMA CORPORATE FINANCIAL INFORMATION		​	Page 20
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	Supplemental Financial Information November 8, 2022

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CAPITALIZATION

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CAPITALIZATION		​	Page 21
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Supplemental Financial Information November 8, 2022

Comparative Capitalization Q3 2022 – Q3 2021

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​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	September 30,		​	June 30,		​	March 31,		​	December 31,		​	September 30,		​
(In thousands, except per share data)		2022		****	2022		****	2022		****	2021		****	2021		​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Common Share Price & Dividends	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
At the end of the quarter	​	$	9.42	​	$	9.92	​	$	11.78	​	$	11.73	​	$	11.94	​
High during quarter ended	​	$	12.22	​	$	12.68	​	$	12.07	​	$	13.23	​	$	12.48	​
Low during quarter ended	​	$	9.42	​	$	9.64	​	$	10.15	​	$	10.48	​	$	10.68	​
Common dividends per share	​	$	0.05	​	$	—	​	$	—	​	$	—	​	$	—	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Common Shares & Units	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Common shares outstanding	​	​	211,570	​	​	212,451	​	​	215,668	​	​	219,334	​	​	219,334	​
Units outstanding	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​
Total common shares and units outstanding	​	​	211,570	​	​	212,451	​	​	215,668	​	​	219,334	​	​	219,334	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Capitalization ****	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Market value of common equity	​	$	1,992,991	​	$	2,107,512	​	$	2,540,568	​	$	2,572,785	​	$	2,618,845	​
Liquidation value of preferred equity - Series G	​	​	66,250	​	​	66,250	​	​	66,250	​	​	66,250	​	​	66,250	​
Liquidation value of preferred equity - Series H	​	​	115,000	​	​	115,000	​	​	115,000	​	​	115,000	​	​	115,000	​
Liquidation value of preferred equity - Series I	​	​	100,000	​	​	100,000	​	​	100,000	​	​	100,000	​	​	100,000	​
Consolidated debt	​	​	816,647	​	​	805,443	​	​	575,934	​	​	611,437	​	​	745,484	​
Consolidated total capitalization	​	​	3,090,888	​	​	3,194,205	​	​	3,397,752	​	​	3,465,472	​	​	3,645,579	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Noncontrolling interest in consolidated debt	​	​	—	​	​	—	​	​	(55,000)	​	​	(55,000)	​	​	(55,000)	​
Pro rata total capitalization	​	$	3,090,888	​	$	3,194,205	​	$	3,342,752	​	$	3,410,472	​	$	3,590,579	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Consolidated debt to consolidated total capitalization	​	​	26.4	%	​	25.2	%	​	17.0	%	​	17.6	%	​	20.4	%
Pro rata debt to pro rata total capitalization	​	​	26.4	%	​	25.2	%	​	15.6	%	​	16.3	%	​	19.2	%
Consolidated debt and preferred equity to consolidated total capitalization	​	​	35.5	%	​	34.0	%	​	25.2	%	​	25.8	%	​	28.2	%
Pro rata debt and preferred equity to pro rata total capitalization	​	​	35.5	%	​	34.0	%	​	24.0	%	​	24.6	%	​	27.1	%

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CAPITALIZATION		​	Page 22
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Supplemental Financial Information November 8, 2022

Debt Summary Schedule

​	​	​	​	​	​	​	​	​	​	​	​
(In thousands)	​	​	​	Interest Rate /	​	Maturity	​	​	September 30, 2022	​	​
Debt	****	Collateral	****	Spread	****	Date (1)		​	Balance	​	​
​	​	​	​	​	​	​	​	​	​	​	​
Secured Mortgage Debt (2)	​	Hilton San Diego Bayfront	​	3.82%	​	12/09/2023	​	$	220,000	​	​
Secured Mortgage Debt	​	JW Marriott New Orleans	​	4.15%	​	12/11/2024	​	​	76,647	​	​
Series A Senior Notes (3)	​	Unsecured	​	5.69%	​	01/10/2026	​	​	65,000	​	​
Term Loan 1 (4)	​	Unsecured	​	4.60%	​	07/25/2027	​	​	175,000	​	​
Series B Senior Notes (3)	​	Unsecured	​	5.79%	​	01/10/2028	​	​	105,000	​	​
Term Loan 2 (4)	​	Unsecured	​	3.63%	​	01/25/2028	​	​	175,000	​	​
​	​	​	​	​	​	​	​	​	​	​	​
TOTAL CONSOLIDATED DEBT	​	​	​	​	​	​	​	$	816,647	​	​
​	​	​	​	​	​	​	​	​	​	​	​
Preferred Stock	​	​	​	​	​	​	​	​	​	​	​
Series G cumulative redeemable preferred (5)	​	​	​	2.268%	​	perpetual	​	$	66,250	​	​
Series H cumulative redeemable preferred	​	​	​	6.125%	​	perpetual	​	​	115,000	​	​
Series I cumulative redeemable preferred	​	​	​	5.70%	​	perpetual	​	​	100,000	​	​
Total Preferred Stock	​	​	​	​	​	​	​	$	281,250	​	​
​	​	​	​	​	​	​	​	​	​	​	​
Debt Statistics	​	​	​	​	​	​	​	​	​	​	​
% Fixed Rate Debt	​	​	​	​	​	​	​	​	42.4	%	​
% Floating Rate Debt	​	​	​	​	​	​	​	​	57.6	%	​
Average Interest Rate	​	​	​	​	​	​	​	​	4.38	%	​
Weighted Average Maturity of Debt (1)	​	​	​	​	​	​	​	​	3.6 years	​	​

​

(1)	Maturity Date assumes the exercise of the final available extension for the mortgage secured by the Hilton San Diego Bayfront. By extending the mortgage, the Company's weighted average maturity of debt increases from 3.4 years to 3.6 years.
(2)	Interest on the mortgage debt secured by the Hilton San Diego Bayfront bears a blended rate of one-month LIBOR plus 105 basis points.
---	---
(3)	The 2020 and 2021 amendments to the Company's Senior Notes increased the annual interest rates on the Senior Notes by 1.25% through September 30, 2022. From October 1, 2022 to December 31, 2022, the increase in the annual rate will decrease to 1.00%. The Company expects the increase in the annual interest rate on the Senior Notes will be eliminated as of January 1, 2023. The interest rates presented reflect the terms of the Senior Notes amendments as of October 1, 2022.
---	---
(4)	Pursuant to the Second Amended Credit Agreement, interest rates on the term loans are calculated on a leverage-based pricing grid ranging from 135 to 220 basis points over the applicable adjusted term SOFR. The interest rate for Term Loan 2 includes the effect of the Company's interest rate derivative swap agreement.
---	---
(5)	The Series G cumulative redeemable preferred stock has an initial dividend rate equal to the Montage Healdsburg's annual net operating income yield on the Company's investment in the resort. During the first six months of 2022, the Company declared cash dividends of $0.44295 per share and together with the cash dividends of $0.124162 per share the Company declared for the last six months of 2022, this equates to an annual yield of 2.268%. The annual dividend rate may increase in 2023 to the greater of 3.0% or the rate equal to the Montage Healdsburg's annual net operating income yield on the Company's total investment in the resort.
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CAPITALIZATION		​	Page 23
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PROPERTY-LEVEL DATA AND OPERATING STATISTICS

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PROPERTY-LEVEL DATA AND OPERATING STATISTICS		​	Page 24
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Supplemental Financial Information November 8, 2022

Hotel Information as of November 8, 2022

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​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Hotel			****	Location	****	Brand	****	Number of Rooms	****	% of Total Rooms	****	Interest	****	Year Acquired
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
1		Hilton San Diego Bayfront (1) (2)	​	California	​	Hilton	​	1,190	​	15.38%	​	Leasehold	​	2011 / 2022
2	​	Boston Park Plaza	​	Massachusetts	​	Independent	​	1,060	​	13.70%	​	Fee Simple	​	2013
3	​	Hyatt Regency San Francisco	​	California	​	Hyatt	​	821	​	10.61%	​	Fee Simple	​	2013
4	​	Renaissance Washington DC	​	Washington DC	​	Marriott	​	807	​	10.43%	​	Fee Simple	​	2005
5	​	Renaissance Orlando at SeaWorld®	​	Florida	​	Marriott	​	781	​	10.10%	​	Fee Simple	​	2005
6	​	Wailea Beach Resort	​	Hawaii	​	Marriott	​	547	​	7.07%	​	Fee Simple	​	2014
7	​	JW Marriott New Orleans (3)	​	Louisiana	​	Marriott	​	501	​	6.48%	​	Fee Simple	​	2011
8	​	Marriott Boston Long Wharf	​	Massachusetts	​	Marriott	​	415	​	5.37%	​	Fee Simple	​	2007
9	​	Renaissance Long Beach	​	California	​	Marriott	​	374	​	4.84%	​	Fee Simple	​	2005
10	​	The Confidante Miami Beach	​	Florida	​	Hyatt	​	339	​	4.38%	​	Fee Simple	​	2022
11	​	The Bidwell Marriott Portland	​	Oregon	​	Marriott	​	258	​	3.34%	​	Fee Simple	​	2000
12	​	Hilton New Orleans St. Charles	​	Louisiana	​	Hilton	​	252	​	3.26%	​	Fee Simple	​	2013
13	​	Oceans Edge Resort & Marina	​	Florida	​	Independent	​	175	​	2.26%	​	Fee Simple	​	2017
14	​	Montage Healdsburg	​	California	​	Montage	​	130	​	1.68%	​	Fee Simple	​	2021
15	​	Four Seasons Resort Napa Valley (4)	​	California	​	Four Seasons	​	85	​	1.10%	​	Fee Simple	​	2021
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Total Portfolio	​	​	​	​	​	7,735	​	100%	​	​	​	​

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(1)	In June 2022, the Company acquired the 25.0% noncontrolling partner's ownership interest in the Hilton San Diego Bayfront. Following this acquisition, the Company owns 100% of the hotel.
(2)	The ground lease at the Hilton San Diego Bayfront matures in 2071.
---	---
(3)	Hotel is subject to a municipal airspace lease that matures in 2044 and applies only to certain balcony space fronting Canal Street that is not integral to the hotel’s operations.
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(4)	The number of rooms at the Four Seasons Resort Napa Valley excludes rooms provided by owners of the separately owned Four Seasons Private Residences Napa Valley who may periodically elect to participate in the residential rental program.
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PROPERTY-LEVEL DATA AND OPERATING STATISTICS		​	Page 25
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Supplemental Financial Information November 8, 2022

Property-Level Operating Statistics

ADR, Occupancy and RevPAR

Q3 2022/2021/2019

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​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	ADR										​	Occupancy								​	​	RevPAR
Hotels sorted by number of rooms	​	For the Three Months Ended September 30,										​	For the Three Months Ended September 30,								​	For the Three Months Ended September 30,
​		2022		​	****	2021	​	​	2019	****	2022 vs. 2019		2022	****	2021	​	2019	****	2022 vs. 2019			2022		****	2021		​	​	2019	****	2022 vs. 2019
Hilton San Diego Bayfront (1)	​	$	286.56	​	$	232.43	​	$	262.84	​	9.0%	​	87.9%	​	67.1%	​	89.1%	​	(120)	bps	​	$	251.89	​	$	155.96	​	$	234.19	​	7.6%
Boston Park Plaza	​	$	238.87	​	$	185.66	​	$	239.18	​	(0.1)%	​	90.1%	​	52.1%	​	96.3%	​	(620)	bps	​	$	215.22	​	$	96.73	​	$	230.33	​	(6.6)%
Hyatt Regency San Francisco (1)	​	$	281.26	​	$	199.35	​	$	308.12	​	(8.7)%	​	62.4%	​	52.1%	​	92.4%	​	(3,000)	bps	​	$	175.51	​	$	103.86	​	$	284.70	​	(38.4)%
Renaissance Washington DC (1)	​	$	211.46	​	$	154.56	​	$	198.93	​	6.3%	​	47.9%	​	19.2%	​	79.0%	​	(3,110)	bps	​	$	101.29	​	$	29.68	​	$	157.15	​	(35.5)%
Renaissance Orlando at SeaWorld®	​	$	158.60	​	$	152.44	​	$	128.70	​	23.2%	​	69.5%	​	47.0%	​	68.6%	​	90	bps	​	$	110.23	​	$	71.65	​	$	88.29	​	24.8%
Wailea Beach Resort	​	$	721.50	​	$	649.79	​	$	465.12	​	55.1%	​	82.3%	​	79.4%	​	88.8%	​	(650)	bps	​	$	593.79	​	$	515.93	​	$	413.03	​	43.8%
JW Marriott New Orleans	​	$	194.83	​	$	189.47	​	$	174.99	​	11.3%	​	56.9%	​	51.0%	​	78.3%	​	(2,140)	bps	​	$	110.86	​	$	96.63	​	$	137.02	​	(19.1)%
Marriott Boston Long Wharf	​	$	412.47	​	$	357.86	​	$	380.36	​	8.4%	​	85.0%	​	57.2%	​	94.0%	​	(900)	bps	​	$	350.60	​	$	204.70	​	$	357.54	​	(1.9)%
Renaissance Long Beach	​	$	209.71	​	$	196.95	​	$	183.73	​	14.1%	​	74.1%	​	69.4%	​	83.8%	​	(970)	bps	​	$	155.40	​	$	136.68	​	$	153.97	​	0.9%
The Confidante Miami Beach	​	$	222.54	​	$	213.17	​	$	143.14	​	55.5%	​	62.8%	​	64.4%	​	71.0%	​	(820)	bps	​	$	139.76	​	$	137.28	​	$	101.63	​	37.5%
The Bidwell Marriott Portland	​	$	187.22	​	$	166.32	​	$	210.27	​	(11.0)%	​	55.5%	​	42.6%	​	88.3%	​	(3,280)	bps	​	$	103.91	​	$	70.85	​	$	185.67	​	(44.0)%
Hilton New Orleans St. Charles	​	$	150.49	​	$	156.27	​	$	139.90	​	7.6%	​	55.6%	​	38.4%	​	68.8%	​	(1,320)	bps	​	$	83.67	​	$	60.01	​	$	96.25	​	(13.1)%
Oceans Edge Resort & Marina (1)	​	$	350.96	​	$	366.02	​	$	180.60	​	94.3%	​	65.3%	​	72.8%	​	83.5%	​	(1,820)	bps	​	$	229.18	​	$	266.46	​	$	150.80	​	52.0%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Comparable Portfolio (2)	​	$	287.75	​	$	259.02	​	$	248.22	​	15.9%	​	72.0%	​	53.7%	​	84.8%	​	(1,280)	bps	​	$	207.18	​	$	139.09	​	$	210.49	​	(1.6)%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Montage Healdsburg	​	$	1,267.66	​	$	1,246.45	​	​	N/A	​	N/A	​	53.6%	​	63.9%	​	N/A	​	N/A	​	​	$	679.47	​	$	796.48	​	​	N/A	​	N/A
Four Seasons Resort Napa Valley	​	$	1,976.80	​	​	N/A	​	​	N/A	​	N/A	​	41.4%	​	N/A	​	N/A	​	N/A	​	​	$	818.40	​	​	N/A	​	​	N/A	​	N/A
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total Portfolio (3)	​	$	311.62	​	​	​	​	​	​	​	​	​	71.4%	​	​	​	​	​	​	​	​	$	222.50	​	​	​	​	​	​	​	​

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*Footnotes on page 29

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PROPERTY-LEVEL DATA AND OPERATING STATISTICS		​	Page 26
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Supplemental Financial Information November 8, 2022

Property-Level Operating Statistics

ADR, Occupancy and RevPAR

Q3 YTD 2022/2021/2019

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​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	ADR										​	Occupancy								​	​	RevPAR
Hotels sorted by number of rooms	​	For the Nine Months Ended September 30,										​	For the Nine Months Ended September 30,								​	For the Nine Months Ended September 30,
​		2022		​	****	2021	​	​	2019	****	2022 vs. 2019		2022	****	2021	​	2019	****	2022 vs. 2019			2022		****	2021		​	​	2019	****	2022 vs. 2019
Hilton San Diego Bayfront (1)	​	$	274.76	​	$	202.62	​	$	257.32	​	6.8%	​	76.8%	​	44.1%	​	81.1%	​	(430)	bps	​	$	211.02	​	$	89.36	​	$	208.69	​	1.1%
Boston Park Plaza	​	$	222.50	​	$	166.83	​	$	217.24	​	2.4%	​	74.4%	​	33.4%	​	91.4%	​	(1,700)	bps	​	$	165.54	​	$	55.72	​	$	198.56	​	(16.6)%
Hyatt Regency San Francisco (1)	​	$	262.03	​	$	197.60	​	$	322.89	​	(18.8)%	​	55.3%	​	27.9%	​	89.2%	​	(3,390)	bps	​	$	144.90	​	$	55.13	​	$	288.02	​	(49.7)%
Renaissance Washington DC (1)	​	$	242.60	​	$	140.68	​	$	230.93	​	5.1%	​	51.6%	​	42.8%	​	79.7%	​	(2,810)	bps	​	$	125.18	​	$	60.21	​	$	184.05	​	(32.0)%
Renaissance Orlando at SeaWorld®	​	$	183.62	​	$	144.32	​	$	165.99	​	10.6%	​	68.0%	​	37.2%	​	78.1%	​	(1,010)	bps	​	$	124.86	​	$	53.69	​	$	129.64	​	(3.7)%
Wailea Beach Resort	​	$	684.67	​	$	601.59	​	$	469.49	​	45.8%	​	81.3%	​	63.1%	​	91.7%	​	(1,040)	bps	​	$	556.64	​	$	379.60	​	$	430.52	​	29.3%
JW Marriott New Orleans	​	$	232.10	​	$	174.01	​	$	205.67	​	12.9%	​	59.2%	​	41.3%	​	84.4%	​	(2,520)	bps	​	$	137.40	​	$	71.87	​	$	173.59	​	(20.8)%
Marriott Boston Long Wharf	​	$	381.40	​	$	321.78	​	$	337.94	​	12.9%	​	65.8%	​	34.9%	​	87.5%	​	(2,170)	bps	​	$	250.96	​	$	112.30	​	$	295.70	​	(15.1)%
Renaissance Long Beach	​	$	209.25	​	$	176.63	​	$	193.19	​	8.3%	​	74.8%	​	60.2%	​	82.9%	​	(810)	bps	​	$	156.52	​	$	106.33	​	$	160.15	​	(2.3)%
The Confidante Miami Beach	​	$	309.49	​	$	210.54	​	$	199.68	​	55.0%	​	72.7%	​	75.3%	​	80.1%	​	(740)	bps	​	$	225.00	​	$	158.54	​	$	159.94	​	40.7%
The Bidwell Marriott Portland	​	$	171.19	​	$	156.99	​	$	190.04	​	(9.9)%	​	49.1%	​	24.0%	​	85.2%	​	(3,610)	bps	​	$	84.05	​	$	37.68	​	$	161.91	​	(48.1)%
Hilton New Orleans St. Charles	​	$	179.95	​	$	133.92	​	$	168.21	​	7.0%	​	56.0%	​	36.2%	​	76.6%	​	(2,060)	bps	​	$	100.77	​	$	48.48	​	$	128.85	​	(21.8)%
Oceans Edge Resort & Marina (1)	​	$	451.74	​	$	399.96	​	$	244.81	​	84.5%	​	76.4%	​	78.9%	​	90.2%	​	(1,380)	bps	​	$	345.13	​	$	315.57	​	$	220.82	​	56.3%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Comparable Portfolio (2)	​	$	290.10	​	$	237.13	​	$	254.13	​	14.2%	​	67.1%	​	42.8%	​	84.6%	​	(1,750)	bps	​	$	194.66	​	$	101.49	​	$	214.99	​	(9.5)%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Montage Healdsburg	​	$	1,096.14	​	$	1,095.70	​	​	N/A	​	N/A	​	57.0%	​	48.6%	​	N/A	​	N/A	​	​	$	624.80	​	$	532.51	​	​	N/A	​	N/A
Four Seasons Resort Napa Valley	​	$	1,757.55	​	​	N/A	​	​	N/A	​	N/A	​	45.1%	​	N/A	​	N/A	​	N/A	​	​	$	792.66	​	​	N/A	​	​	N/A	​	N/A
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total Portfolio (3)	​	$	313.10	​	​	​	​	​	​	​	​	​	66.7%	​	​	​	​	​	​	​	​	$	208.84	​	​	​	​	​	​	​	​

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*Footnotes on page 29

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PROPERTY-LEVEL DATA AND OPERATING STATISTICS		​	Page 27
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Supplemental Financial Information November 8, 2022

Property-Level Operating Statistics

Total RevPAR (TRevPAR)

Q3 and YTD 2022/2021/2019

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​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Hotels sorted by number of rooms	​	For the Three Months Ended September 30,										​	For the Nine Months Ended September 30,
​		2022		​	2021		​	****	2019	****	2022 vs. 2019		2022		​	2021		****	2019		****	2022 vs. 2019
Hilton San Diego Bayfront (1)	​	$	435.88	​	$	234.98	​	$	394.00	​	10.6%	​	$	366.79	​	$	133.71	​	$	364.67	​	0.6%
Boston Park Plaza	​	$	297.27	​	$	131.79	​	$	309.64	​	(4.0)%	​	$	234.58	​	$	73.69	​	$	275.05	​	(14.7)%
Hyatt Regency San Francisco (1)	​	$	245.90	​	$	137.86	​	$	377.78	​	(34.9)%	​	$	212.29	​	$	71.96	​	$	407.67	​	(47.9)%
Renaissance Washington DC (1)	​	$	166.29	​	$	49.69	​	$	254.73	​	(34.7)%	​	$	192.75	​	$	72.14	​	$	292.43	​	(34.1)%
Renaissance Orlando at SeaWorld®	​	$	251.12	​	$	134.72	​	$	207.76	​	20.9%	​	$	279.21	​	$	101.68	​	$	293.54	​	(4.9)%
Wailea Beach Resort	​	$	854.83	​	$	713.07	​	$	594.74	​	43.7%	​	$	816.98	​	$	514.20	​	$	614.80	​	32.9%
JW Marriott New Orleans	​	$	147.50	​	$	130.74	​	$	176.68	​	(16.5)%	​	$	174.71	​	$	92.96	​	$	228.09	​	(23.4)%
Marriott Boston Long Wharf	​	$	477.65	​	$	272.55	​	$	478.49	​	(0.2)%	​	$	346.11	​	$	151.07	​	$	411.89	​	(16.0)%
Renaissance Long Beach	​	$	194.45	​	$	172.17	​	$	210.53	​	(7.6)%	​	$	201.03	​	$	127.71	​	$	221.18	​	(9.1)%
The Confidante Miami Beach	​	$	241.78	​	$	211.77	​	$	189.96	​	27.3%	​	$	357.01	​	$	245.66	​	$	282.64	​	26.3%
The Bidwell Marriott Portland	​	$	140.22	​	$	85.57	​	$	212.05	​	(33.9)%	​	$	113.84	​	$	46.48	​	$	186.06	​	(38.8)%
Hilton New Orleans St. Charles	​	$	99.10	​	$	70.39	​	$	111.71	​	(11.3)%	​	$	131.01	​	$	60.72	​	$	146.35	​	(10.5)%
Oceans Edge Resort & Marina (1)	​	$	371.84	​	$	402.72	​	$	256.39	​	45.0%	​	$	510.27	​	$	458.76	​	$	343.32	​	48.6%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Comparable Portfolio (2)	​	$	317.37	​	$	198.55	​	$	313.35	​	1.3%	​	$	300.40	​	​	141.55	​	$	328.42	​	(8.5)%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Montage Healdsburg	​	$	1,143.87	​	$	1,286.05	​	​	N/A	​	N/A	​	$	1,100.20	​	$	878.80	​	​	N/A	​	N/A
Four Seasons Resort Napa Valley	​	$	1,319.24	​	​	N/A	​	​	N/A	​	N/A	​	$	1,296.27	​	​	N/A	​	​	N/A	​	N/A
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total Portfolio (3)	​	$	343.03	​	​	​	​	​	​	​	​	​	$	325.29	​	​	​	​	​	​	​	​

*Footnotes on page 29

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PROPERTY-LEVEL DATA AND OPERATING STATISTICS		​	Page 28
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Supplemental Financial Information November 8, 2022

Property-Level Operating Statistics

Q3 and YTD 2022/2021/2019 Footnotes

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(1)	Operating statistics for the third quarter and first nine months of 2022 are impacted by room renovations at the Hyatt Regency San Francisco and the Renaissance Washington DC. Operating statistics for the third quarter and first nine months of 2019 are impacted by room renovations at the Hilton San Diego Bayfront, the Hyatt Regency San Francisco and the Oceans Edge Resort & Marina.
(2)	Comparable Portfolio operating statistics include the same 12 hotels owned by the Company during the third quarters and first nine months of 2022, 2021 and 2019 plus The Confidante Miami Beach acquired by the Company in June 2022. Comparable Portfolio operating statistics for the first nine months of 2022 and the third quarters and first nine months of 2021 and 2019 include prior ownership information obtained by the Company from the previous owner of The Confidante Miami Beach during the due diligence period before acquiring the hotel. The Company performed a limited review of the information as part of its analysis of the acquisition.
---	---
(3)	Total Portfolio consists of all 15 hotels owned by the Company as of September 30, 2022. Total Portfolio operating statistics for the first nine months of 2022 include rooms provided by the owners of the separately owned Four Seasons Private Residences Napa Valley who may periodically elect to participate in the residential rental program at the Four Seasons Resort Napa Valley. Total Portfolio operating statistics for the first nine months of 2021 include prior ownership results for the Montage Healdsburg. The Company obtained prior ownership information from the previous owner of the Montage Healdsburg during the due diligence period before acquiring the hotel. The Company performed a limited review of the information as part of its analysis of the acquisition.
---	---

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PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre &

ADJUSTED EBITDAre MARGINS

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PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS		​	Page 30
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Supplemental Financial Information November 8, 2022

Property-Level Revenues, Adjusted EBITDAre and Adjusted EBITDAre Margins

Q3 2022/2021

​

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Hotels sorted by number of rooms	​	For the Three Months Ended September 30,
​	​	2022							​	2021							​	​	​
(In thousands)	​	​		​	​		​	Hotel Adjusted	​	​		​	​		​	Hotel Adjusted	​	Hotel Adjusted
​	​	Total		​	Hotel Adjusted		​	EBITDAre	​	Total		​	Hotel Adjusted		​	EBITDAre	​	EBITDAre
​		Revenues		****	EBITDAre		****	Margins	****	Revenues		****	EBITDAre		****	Margins	****	Margin Change
Hilton San Diego Bayfront	​	$	47,720	​	$	17,244	​	36.1%	​	$	25,726	​	$	8,020	​	31.2%	​	490	bps
Boston Park Plaza	​	​	28,989	​	​	9,086	​	31.3%	​	​	12,852	​	​	391	​	3.0%	​	2,830	bps
Hyatt Regency San Francisco (1)	​	​	18,574	​	​	1,657	​	8.9%	​	​	10,413	​	​	(1,334)	​	(12.8)%	​	2,170	bps
Renaissance Washington DC (1)	​	​	12,346	​	​	1,335	​	10.8%	​	​	3,689	​	​	(2,328)	​	(63.1)%	​	7,390	bps
Renaissance Orlando at SeaWorld®	​	​	18,043	​	​	4,685	​	26.0%	​	​	9,681	​	​	1,374	​	14.2%	​	1,180	bps
Wailea Beach Resort	​	​	43,019	​	​	17,860	​	41.5%	​	​	35,885	​	​	16,007	​	44.6%	​	(310)	bps
JW Marriott New Orleans	​	​	6,798	​	​	1,449	​	21.3%	​	​	6,027	​	​	1,909	​	31.7%	​	(1,040)	bps
Marriott Boston Long Wharf	​	​	18,237	​	​	8,236	​	45.2%	​	​	10,406	​	​	3,018	​	29.0%	​	1,620	bps
Renaissance Long Beach	​	​	6,691	​	​	1,815	​	27.1%	​	​	5,924	​	​	1,966	​	33.2%	​	(610)	bps
The Confidante Miami Beach	​	​	7,540	​	​	756	​	10.0%	​	​	6,802	​	​	464	​	6.8%	​	320	bps
The Bidwell Marriott Portland	​	​	3,328	​	​	792	​	23.8%	​	​	2,031	​	​	181	​	8.9%	​	1,490	bps
Hilton New Orleans St. Charles	​	​	2,298	​	​	343	​	14.9%	​	​	1,632	​	​	196	​	12.0%	​	290	bps
Oceans Edge Resort & Marina	​	​	5,986	​	​	1,571	​	26.2%	​	​	6,483	​	​	2,267	​	35.0%	​	(880)	bps
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Comparable Portfolio (2)	​	​	219,569	​	​	66,829	​	30.4%	​	​	137,551	​	​	32,131	​	23.4%	​	700	bps
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Montage Healdsburg	​	​	13,681	​	​	2,146	​	15.7%	​	​	15,381	​	​	3,635	​	23.6%	​	(790)	bps
Four Seasons Resort Napa Valley	​	​	11,045	​	​	447	​	4.0%	​	​	—	​	​	—	​	N/A	​	N/A	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total Portfolio (3)	​	​	244,295	​	​	69,422	​	28.4%	​	​	152,932	​	​	35,766	​	23.4%	​	N/A	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Less: Prior Ownership (4)	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
The Confidante Miami Beach	​	​	—	​	​	—	​	N/A	​	​	(6,802)	​	​	(464)	​	6.8%	​	N/A	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Add: Sold Hotels (5)	​	​	—	​	​	—	​	N/A	​	​	19,607	​	​	4,742	​	24.2%	​	N/A	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Actual Portfolio (6)	​	$	244,295	​	$	69,422	​	28.4%	​	$	165,737	​	$	40,044	​	24.2%	​	N/A	​

*Footnotes on page 35

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PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS		​	Page 31
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Supplemental Financial Information November 8, 2022

Property-Level Revenues, Adjusted EBITDAre and Adjusted EBITDAre Margins

Q3 2022/2019

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Hotels sorted by number of rooms	​	For the Three Months Ended September 30,
​	​	2022							​	2019							​	​	​
(In thousands)	​	​		​	​		​	Hotel Adjusted	​	​		​	​		​	Hotel Adjusted	​	Hotel Adjusted
​	​	Total		​	Hotel Adjusted		​	EBITDAre	​	Total		​	Hotel Adjusted		​	EBITDAre	​	EBITDAre
​		Revenues		****	EBITDAre		****	Margins	****	Revenues		****	EBITDAre		****	Margins	****	Margin Change
Hilton San Diego Bayfront (1)	​	$	47,720	​	$	17,244	​	36.1%	​	$	43,134	​	$	15,020	​	34.8%	​	130	bps
Boston Park Plaza	​	​	28,989	​	​	9,086	​	31.3%	​	​	30,195	​	​	11,289	​	37.4%	​	(610)	bps
Hyatt Regency San Francisco (1)	​	​	18,574	​	​	1,657	​	8.9%	​	​	27,985	​	​	7,116	​	25.4%	​	(1,650)	bps
Renaissance Washington DC (1)	​	​	12,346	​	​	1,335	​	10.8%	​	​	18,912	​	​	4,136	​	21.9%	​	(1,110)	bps
Renaissance Orlando at SeaWorld®	​	​	18,043	​	​	4,685	​	26.0%	​	​	14,928	​	​	3,625	​	24.3%	​	170	bps
Wailea Beach Resort	​	​	43,019	​	​	17,860	​	41.5%	​	​	29,932	​	​	11,644	​	38.9%	​	260	bps
JW Marriott New Orleans	​	​	6,798	​	​	1,449	​	21.3%	​	​	8,143	​	​	2,465	​	30.3%	​	(900)	bps
Marriott Boston Long Wharf	​	​	18,237	​	​	8,236	​	45.2%	​	​	18,269	​	​	7,994	​	43.8%	​	140	bps
Renaissance Long Beach	​	​	6,691	​	​	1,815	​	27.1%	​	​	7,243	​	​	2,216	​	30.6%	​	(350)	bps
The Confidante Miami Beach	​	​	7,540	​	​	756	​	10.0%	​	​	6,187	​	​	5	​	0.1%	​	990	bps
The Bidwell Marriott Portland	​	​	3,328	​	​	792	​	23.8%	​	​	4,858	​	​	2,181	​	44.9%	​	(2,110)	bps
Hilton New Orleans St. Charles	​	​	2,298	​	​	343	​	14.9%	​	​	2,589	​	​	392	​	15.1%	​	(20)	bps
Oceans Edge Resort & Marina (1)	​	​	5,986	​	​	1,571	​	26.2%	​	​	4,128	​	​	695	​	16.8%	​	940	bps
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Comparable Portfolio (2)	​	​	219,569	​	​	66,829	​	30.4%	​	​	216,503	​	​	68,778	​	31.8%	​	(140)	bps
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Montage Healdsburg	​	​	13,681	​	​	2,146	​	15.7%	​	​	—	​	​	—	​	N/A	​	N/A	​
Four Seasons Resort Napa Valley	​	​	11,045	​	​	447	​	4.0%	​	​	—	​	​	—	​	N/A	​	N/A	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total Portfolio (3)	​	​	244,295	​	​	69,422	​	28.4%	​	​	216,503	​	​	68,778	​	31.8%	​	N/A	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Less: Prior Ownership (4)	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
The Confidante Miami Beach	​	​	—	​	​	—	​	N/A	​	​	(6,187)	​	​	(5)	​	0.1%	​	N/A	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Add: Sold/Disposed Hotels (5)	​	​	—	​	​	—	​	N/A	​	​	71,301	​	​	17,992	​	25.2%	​	N/A	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Actual Portfolio (6)	​	$	244,295	​	$	69,422	​	28.4%	​	$	281,617	​	$	86,765	​	30.8%	​	N/A	​

​

*Footnotes on page 35

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PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS		​	Page 32
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Supplemental Financial Information November 8, 2022

Property-Level Revenues, Adjusted EBITDAre and Adjusted EBITDAre Margins

Q3 YTD 2022/2021

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Hotels sorted by number of rooms	​	For the Nine Months Ended September 30,
​	​	2022							​	2021							​	​	​
(In thousands)	​	​		​	​		​	Hotel Adjusted	​	​		​	​		​	Hotel Adjusted	​	Hotel Adjusted
​	​	Total		​	Hotel Adjusted		​	EBITDAre	​	Total		​	Hotel Adjusted		​	EBITDAre	​	EBITDAre
​		Revenues		****	EBITDAre		****	Margins	****	Revenues		****	EBITDAre		****	Margins	****	Margin Change
Hilton San Diego Bayfront	​	$	119,160	​	$	40,225	​	33.8%	​	$	43,440	​	$	4,920	​	11.3%	​	2,250	bps
Boston Park Plaza	​	​	67,884	​	​	16,395	​	24.2%	​	​	21,323	​	​	(5,893)	​	(27.6)%	​	5,180	bps
Hyatt Regency San Francisco (1)	​	​	47,581	​	​	3,278	​	6.9%	​	​	16,128	​	​	(8,370)	​	(51.9)%	​	5,880	bps
Renaissance Washington DC (1)	​	​	42,465	​	​	8,763	​	20.6%	​	​	15,892	​	​	(194)	​	(1.2)%	​	2,180	bps
Renaissance Orlando at SeaWorld®	​	​	59,530	​	​	18,725	​	31.5%	​	​	21,680	​	​	811	​	3.7%	​	2,780	bps
Wailea Beach Resort	​	​	122,001	​	​	51,541	​	42.2%	​	​	76,786	​	​	32,613	​	42.5%	​	(30)	bps
JW Marriott New Orleans	​	​	23,895	​	​	8,081	​	33.8%	​	​	12,714	​	​	2,535	​	19.9%	​	1,390	bps
Marriott Boston Long Wharf	​	​	39,212	​	​	14,159	​	36.1%	​	​	17,116	​	​	1,314	​	7.7%	​	2,840	bps
Renaissance Long Beach	​	​	20,526	​	​	6,393	​	31.1%	​	​	13,040	​	​	4,029	​	30.9%	​	20	bps
The Confidante Miami Beach	​	​	33,040	​	​	9,947	​	30.1%	​	​	23,631	​	​	3,810	​	16.1%	​	1,400	bps
The Bidwell Marriott Portland	​	​	8,018	​	​	1,531	​	19.1%	​	​	3,274	​	​	(1,091)	​	(33.3)%	​	5,240	bps
Hilton New Orleans St. Charles	​	​	9,013	​	​	3,077	​	34.1%	​	​	4,177	​	​	227	​	5.4%	​	2,870	bps
Oceans Edge Resort & Marina	​	​	24,378	​	​	9,806	​	40.2%	​	​	21,917	​	​	9,429	​	43.0%	​	(280)	bps
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Comparable Portfolio (2)	​	​	616,703	​	​	191,921	​	31.1%	​	​	291,118	​	​	44,140	​	15.2%	​	1,590	bps
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Montage Healdsburg	​	​	39,046	​	​	4,647	​	11.9%	​	​	25,433	​	​	5,248	​	20.6%	​	(870)	bps
Four Seasons Resort Napa Valley	​	​	31,506	​	​	2,849	​	9.0%	​	​	—	​	​	—	​	N/A	​	N/A	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total Portfolio (3)	​	​	687,255	​	​	199,417	​	29.0%	​	​	316,551	​	​	49,388	​	15.6%	​	N/A	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Less: Prior Ownership (4)	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
The Confidante Miami Beach	​	​	(22,637)	​	​	(8,630)	​	38.1%	​	​	(23,631)	​	​	(3,810)	​	16.1%	​	N/A	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Add: Sold Hotels (5)	​	​	3,234	​	​	(2,172)	​	(67.2)%	​	​	33,505	​	​	(3,400)	​	(10.1)%	​	N/A	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Actual Portfolio (6)	​	$	667,852	​	$	188,615	​	28.2%	​	$	326,425	​	$	42,178	​	12.9%	​	N/A	​

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*Footnotes on page 35

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PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS		​	Page 33
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Supplemental Financial Information November 8, 2022

Property-Level Revenues, Adjusted EBITDAre and Adjusted EBITDAre Margins

Q3 YTD 2022/2019

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​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Hotels sorted by number of rooms	​	For the Nine Months Ended September 30,
​	​	2022							​	2019							​	​	​
(In thousands)	​	​		​	​		​	Hotel Adjusted	​	​		​	​		​	Hotel Adjusted	​	Hotel Adjusted
​	​	Total		​	Hotel Adjusted		​	EBITDAre	​	Total		​	Hotel Adjusted		​	EBITDAre	​	EBITDAre
​		Revenues		****	EBITDAre		****	Margins	****	Revenues		****	EBITDAre		****	Margins	****	Margin Change
Hilton San Diego Bayfront (1)	​	$	119,160	​	$	40,225	​	33.8%	​	$	118,470	​	$	38,209	​	32.3%	​	150	bps
Boston Park Plaza	​	​	67,884	​	​	16,395	​	24.2%	​	​	79,594	​	​	25,329	​	31.8%	​	(760)	bps
Hyatt Regency San Francisco (1)	​	​	47,581	​	​	3,278	​	6.9%	​	​	89,524	​	​	24,284	​	27.1%	​	(2,020)	bps
Renaissance Washington DC (1)	​	​	42,465	​	​	8,763	​	20.6%	​	​	64,426	​	​	18,291	​	28.4%	​	(780)	bps
Renaissance Orlando at SeaWorld®	​	​	59,530	​	​	18,725	​	31.5%	​	​	62,586	​	​	21,395	​	34.2%	​	(270)	bps
Wailea Beach Resort	​	​	122,001	​	​	51,541	​	42.2%	​	​	91,809	​	​	37,016	​	40.3%	​	190	bps
JW Marriott New Orleans	​	​	23,895	​	​	8,081	​	33.8%	​	​	31,197	​	​	12,983	​	41.6%	​	(780)	bps
Marriott Boston Long Wharf	​	​	39,212	​	​	14,159	​	36.1%	​	​	46,665	​	​	17,770	​	38.1%	​	(200)	bps
Renaissance Long Beach	​	​	20,526	​	​	6,393	​	31.1%	​	​	22,582	​	​	7,226	​	32.0%	​	(90)	bps
The Confidante Miami Beach	​	​	33,040	​	​	9,947	​	30.1%	​	​	27,315	​	​	6,011	​	22.0%	​	810	bps
The Bidwell Marriott Portland	​	​	8,018	​	​	1,531	​	19.1%	​	​	12,648	​	​	5,109	​	40.4%	​	(2,130)	bps
Hilton New Orleans St. Charles	​	​	9,013	​	​	3,077	​	34.1%	​	​	10,068	​	​	2,734	​	27.2%	​	690	bps
Oceans Edge Resort & Marina (1)	​	​	24,378	​	​	9,806	​	40.2%	​	​	16,402	​	​	5,141	​	31.3%	​	890	bps
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Comparable Portfolio (2)	​	​	616,703	​	​	191,921	​	31.1%	​	​	673,286	​	​	221,498	​	32.9%	​	(180)	bps
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Montage Healdsburg	​	​	39,046	​	​	4,647	​	11.9%	​	​	—	​	​	—	​	N/A	​	N/A	​
Four Seasons Resort Napa Valley	​	​	31,506	​	​	2,849	​	9.0%	​	​	—	​	​	—	​	N/A	​	N/A	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total Portfolio (3)	​	​	687,255	​	​	199,417	​	29.0%	​	​	673,286	​	​	221,498	​	32.9%	​	N/A	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Less: Prior Ownership (4)	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
The Confidante Miami Beach	​	​	(22,637)	​	​	(8,630)	​	38.1%	​	​	(27,315)	​	​	(6,011)	​	22.0%	​	N/A	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Add: Sold/Disposed Hotels (5)	​	​	3,234	​	​	(2,172)	​	(67.2)%	​	​	196,174	​	​	43,001	​	21.9%	​	N/A	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Actual Portfolio (6)	​	$	667,852	​	$	188,615	​	28.2%	​	$	842,145	​	$	258,488	​	30.7%	​	N/A	​

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*Footnotes on page 35

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PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS		​	Page 34
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Supplemental Financial Information November 8, 2022

Property-Level Revenues, Adjusted EBITDAre and Adjusted EBITDAre Margins

Q3 and Q3 YTD 2022/2021/2019 Footnotes

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(1)	Hotel Adjusted EBITDAre for the third quarter and first nine months of 2022 are impacted by room renovations at the Hyatt Regency San Francisco and the Renaissance Washington DC. Hotel Adjusted EBITDAre for the third quarter and first nine months of 2019 are impacted by room renovations at the Hilton San Diego Bayfront, the Hyatt Regency San Francisco and the Oceans Edge Resort & Marina.
(2)	Comparable Portfolio includes the same 12 hotels owned by the Company during the third quarters and first nine months of 2022, 2021 and 2019 plus The Confidante Miami Beach acquired by the Company in June 2022. Amounts included in this presentation for The Confidante Miami Beach include both prior ownership results and the Company's results. The Company obtained prior ownership information from the previous owner of The Confidante Miami Beach during the due diligence period before acquiring the hotel. The Company performed a limited review of the information as part of its analysis of the acquisition.
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(3)	Total Portfolio consists of all 15 hotels owned by the Company as of September 30, 2022. The Total Portfolio includes the Company’s ownership results for the Montage Healdsburg and the Four Seasons Resort Napa Valley, which were acquired in April 2021 and December 2021, respectively. Both the Montage Healdsburg and the Four Seasons Resort Napa Valley are newly-developed hotels that opened on limited bases in December 2020 and October 2021, respectively. Prior year information is not comparable.
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(4)	Prior Ownership includes results for The Confidante Miami Beach prior to the Company’s acquisition of the hotel in June 2022.
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(5)	Sold Hotels for the first nine months of 2022, 2021 and 2019 include results for the Hyatt Centric Chicago Magnificent Mile, sold in February 2022, and the Embassy Suites Chicago and Hilton Garden Inn Chicago Downtown/Magnificent Mile, sold in March 2022. Sold Hotels for the third quarter and first nine months of 2021 and 2019 also include results for the Embassy Suites La Jolla and the Renaissance Westchester, sold in December 2021 and October 2021, respectively. Sold/Disposed Hotels for the third quarter and first nine months of 2019 also include results for the Renaissance Los Angeles Airport sold in December 2020, the Hilton Times Square assigned to its mortgage holder in December 2020, the Renaissance Harborplace sold in July 2020, and the Courtyard by Marriott Los Angeles sold in October 2019.
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(6)	Actual Portfolio includes results for the 15 hotels and 18 hotels owned by the Company during the third quarter and first nine months of 2022, respectively, and the 18 hotels and 21 hotels owned by the Company during the third quarters and first nine months of 2021 and 2019, respectively.
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PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS		​	Page 35
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