8-K - SHO - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

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

Date of Report (Date of earliest event reported): February 18, 2025

Sunstone Hotel Investors, Inc.

(Exact Name of Registrant as Specified in Its Charter)


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


15 Enterprise , Suite 200 ** Aliso Viejo , California**		92656
(Address of Principal Executive Offices)		(Zip Code)

( 949 ) 330-4000

(Registrant’s telephone number including area code)

N/A

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

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


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


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

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


	Emerging growth company	☐

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

Item 2.02.Results of Operations and Financial Condition.

On February 21, 2025, Sunstone Hotel Investors, Inc. (the “Company”) issued a press release regarding its financial results for the fourth quarter and year ended December 31, 2024. The press release referred to supplemental financial information that is available on the Company’s website, free of charge, at www.sunstonehotels.com. A copy of the press release and the supplemental financial information are attached hereto as Exhibits 99.1 and 99.2, respectively, and are incorporated herein by this reference.

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

Item 5.02.Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers.

On February 18, 2025, Bryan A. Giglia, Chief Executive Officer and Aaron R. Reyes, Executive Vice President & Chief Financial Officer entered into Amended and Restated Employment Agreements for the purpose of adjusting their respective threshold, target, and maximum cash bonus percentages. Mr. Giglia’s percentages were increased from 67.5%, 135%, and 202.5% to 75%, 150%, and 225%. Mr. Reyes’ percentages were increased from 50%, 100%, and 150% to 57.5%, 115%, and 172.5%.

Item 9.01.Financial Statements and Exhibits.

(d) The following exhibits are furnished herewith:

EXHIBIT INDEX


Exhibit No.	****	Description
99.1		Press Release, dated February 21, 2025.
99.2		Supplemental Financial Information for the fourth quarter and year ended December 31, 2024.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURE

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


	Sunstone Hotel Investors, Inc.

Date: February 21, 2025	By:	/s/ Aaron R. Reyes
		Aaron R. Reyes (Principal Financial Officer and Duly Authorized Officer)

Exhibit 99.1

For Additional Information:

Aaron Reyes

Sunstone Hotel Investors, Inc.

(949) 382-3018

SUNSTONE HOTEL INVESTORS REPORTS RESULTS FOR FOURTH QUARTER AND FULL YEAR 2024

ALISO VIEJO, CA – February 21, 2025 – Sunstone Hotel Investors, Inc. (the “Company” or “Sunstone”) (NYSE: SHO) today announced results for the fourth quarter and full year ended December 31, 2024.

Fourth Quarter 2024 Operational Results (as compared to Fourth Quarter 2023):

●	Net Income: Net income was $0.8 million as compared to $127.0 million. Excluding the gain on the hotel sold during the fourth quarter 2023, net income would have been $3.2 million.
●	Comparable RevPAR: Comparable RevPAR decreased 1.1% to $199.07. The average daily rate was $304.85 and occupancy was 65.3%. Excluding The Confidante Miami Beach as it transitions to Andaz Miami Beach, RevPAR increased 1.0%. Excluding The Confidante Miami Beach and the Hilton San Diego Bayfront, which was negatively impacted by labor activity in the fourth quarter of 2024, RevPAR increased 2.4%.
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●	Adjusted EBITDAre: Adjusted EBITDAre decreased 12.0% to $48.1 million.
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●	Adjusted FFO: Adjusted FFO attributable to common stockholders per diluted share decreased 15.8% to $0.16.
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Full Year 2024 Operational Results (as compared to Full Year 2023):

●	Net Income: Net income was $43.3 million as compared to $206.7 million. Excluding the gain on the hotel sold during 2023, net income would have been $82.9 million.
●	Comparable RevPAR: Comparable RevPAR decreased 2.4% to $214.06. The average daily rate was $311.13 and occupancy was 68.8%. Excluding The Confidante Miami Beach as it transitions to Andaz Miami Beach, RevPAR was $221.73 and was generally unchanged as compared to the prior year. Excluding The Confidante Miami Beach and the Hilton San Diego Bayfront, which was negatively impacted by labor activity in the third and fourth quarters of 2024, RevPAR increased 0.9%.
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●	Adjusted EBITDAre: Adjusted EBITDAre decreased 12.8% to $229.7 million.
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●	Adjusted FFO: Adjusted FFO attributable to common stockholders per diluted share decreased 15.8% to $0.80.
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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.

Bryan A. Giglia, Chief Executive Officer, stated, “In 2024, we began to realize the benefits of the investments we have made in our portfolio, which we expect will contribute to growth for the next several years. While industry fundamentals were not as robust in 2024 as we had hoped, we were pleased with the strong performance at our newly converted The Westin Washington, DC Downtown, which is now one of the premier convention hotels in the city. Additionally, our hotels in Boston and San Antonio benefited from strong group and transient demand, while our Wine Country resorts grew occupancy and profitability.”

Mr. Giglia continued, “During 2024, we successfully executed our strategy of recycling capital, investing in our portfolio, and returning capital to shareholders. We redeployed capital, acquiring the Hyatt Regency San Antonio Riverwalk at a compelling current yield with attractive future growth opportunities. Building on our success with the conversion of The Westin Washington, DC Downtown, we are now positioned to generate further growth from other recent investments in our portfolio. As we look ahead, our earnings in 2025 are expected to benefit from the recently completed conversion of the Marriott Long Beach Downtown and the debut of Andaz Miami Beach in the first quarter. Our strong liquidity position and embedded earnings growth provide for a well-covered dividend and the ability to repurchase our common stock at a discount to NAV, which is evidenced by our return of nearly $100 1

million to shareholders during the year. We believe that our active capital recycling, investment in our portfolio to drive future growth, and meaningful return of capital will position Sunstone for further success in 2025.”

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


	Quarter Ended December 31,								Year Ended December 31,
	2024		****	2023		****	Change		2024			2023			Change

Net Income	$	0.8		$	127.0		(99.3)	%	$	43.3		$	206.7		(79.1)	%
(Loss) Income Attributable to Common Stockholders per Diluted Share	$	(0.02)		$	0.60		(103.3)	%	$	0.14		$	0.93		(84.9)	%

Comparable Operating Statistics (1)
RevPAR	$	199.07		$	201.29		(1.1)	%	$	214.06		$	219.32		(2.4)	%
Occupancy		65.3	%		65.3	%	—	bps		68.8	%		69.9	%	(110)	bps
Average Daily Rate	$	304.85		$	308.25		(1.1)	%	$	311.13		$	313.76		(0.8)	%

Comparable Operating Statistics, excluding The Confidante Miami Beach
RevPAR	$	207.30		$	205.31		1.0	%	$	221.73		$	221.64		0.0	%
Occupancy		68.0	%		65.9	%	210	bps		71.2	%		70.3	%	90	bps
Average Daily Rate	$	304.85		$	311.55		(2.2)	%	$	311.42		$	315.28		(1.2)	%

Comparable Adjusted EBITDAre Margin, excluding The Confidante Miami Beach		23.6	%		25.7	%	(210)	bps		26.4	%		28.5	%	(210)	bps

Adjusted EBITDAre	$	48.1		$	54.6		(12.0)	%	$	229.7		$	263.4		(12.8)	%
Adjusted FFO Attributable to Common Stockholders	$	32.0		$	39.0		(17.8)	%	$	163.0		$	196.5		(17.0)	%
Adjusted FFO Attributable to Common Stockholders per Diluted Share	$	0.16		$	0.19		(15.8)	%	$	0.80		$	0.95		(15.8)	%
(1)	Comparable operating statistics presented in this release include all 15 hotels owned by the Company at December 31, 2024, and include both prior ownership results and the Company's results for the Hyatt Regency San Antonio Riverwalk, acquired by the Company in April 2024.
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The Company’s actual results for 2024 compare to its guidance previously provided as follows:


Metric	Full Year 2024 Guidance (1)	Full Year 2024 Actual Results	Performance Relative to Prior Guidance Midpoint
Net Income	$31 to $41	$43	+ $7
Total Portfolio RevPAR Growth (2)	- 3.25% to - 1.75%	-2.4%	+ 10 bps
Total Portfolio RevPAR Growth, excluding The Confidante Miami Beach (2)	- 0.75% to + 0.75%	0.0%	0 bps
Adjusted EBITDAre	$220 to $230	$230	+ $5
Adjusted FFO Attributable to Common Stockholders	$152 to $162	$163	+ $7
Adjusted FFO Attributable to Common Stockholders per Diluted Share	$0.75 to $0.80	$0.80	+ $0.03
Diluted Weighted Average Shares Outstanding	203,000,000	202,943,000	-57,000

(1)	Reflects guidance presented on November 12, 2024.
(2)	RevPAR Growth reflects comparison to full year 2023.
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2024 Highlights

Hyatt Regency San Antonio Riverwalk. In April 2024, the Company completed the acquisition of the 630-room Hyatt Regency San Antonio Riverwalk. The exceptionally well-located hotel is situated directly between San Antonio’s famous Riverwalk and the Alamo, two of the most visited tourist sites in Texas. The hotel outperformed the Company’s expectations in 2024 and generated an attractive 10.1x multiple on the net purchase price, inclusive of key money incentives offered by the hotel’s manager. The Company believes there are opportunities to continue to grow earnings at the hotel from the completion of the adjacent Alamo Visitor Center and Museum and from various asset management and investment initiatives.

Marriott Long Beach Downtown. In 2024, the Company completed its renovation and rebranding of the Renaissance Long Beach and the hotel debuted as Marriott Long Beach Downtown. The fully renovated hotel boasts a reimagined lobby, redesigned guestrooms, 2

new food and beverage offerings, and reinvigorated meeting space. The repositioned hotel is attracting higher-quality business and higher rates and should contribute meaningfully to the Company’s earnings in 2025.

Andaz Miami Beach. In 2024, the Company made substantial progress on its conversion of The Confidante Miami Beach to Andaz Miami Beach. The transformative renovation encompasses all aspects of the resort and will meaningfully enhance the earnings potential of the asset. Andaz Miami Beach is expected to debut in the first quarter of 2025 and drive earnings growth in 2025 and beyond.

New Unsecured Term Loan and JW Marriott New Orleans Mortgage Repayment. In the fourth quarter of 2024, the Company entered into a new $100.0 million term loan agreement and used substantially all of the proceeds to repay the $72.1 million loan secured by the JW Marriott New Orleans. Following the repayment of the JW Marriott New Orleans loan, all of the Company’s hotels are unencumbered and, inclusive of extension options, the Company has no debt maturities prior to 2026.

Stock Repurchase Program. During 2024, the Company repurchased 2,764,837 shares of its common stock at an average purchase price of $9.83 per share for a total repurchase amount before expenses of $27.2 million. The average purchase price per share represents a substantial discount to consensus estimates of net asset value and implies a highly attractive valuation multiple on the Company’s stabilized cash flow. The Company currently has $427.5 million remaining under its existing stock repurchase program authorization.

Balance Sheet and Liquidity Update

As of December 31, 2024, the Company had $180.3 million of cash and cash equivalents, including restricted cash of $73.1 million, total assets of $3.1 billion, including $2.9 billion of net investments in hotel properties, total debt of $845.0 million and stockholders’ equity of $2.1 billion.

Capital Investments Update

The Company invested $47.1 million and $157.4 million into its portfolio during the fourth quarter and year ended December 31, 2024, respectively. The majority of the 2024 investment consisted of the conversions of Andaz Miami Beach and the Marriott Long Beach Downtown and a soft goods renovation at Wailea Beach Resort.

The Company currently expects to invest approximately $80 million to $100 million into its portfolio in 2025, with the majority of the investment relating to the completion of the Andaz Miami Beach transformation, the remaining investment for the room renovation at Wailea Beach Resort, and a renovation of the meeting space at Hyatt Regency San Antonio Riverwalk.

2025 Outlook

For the full year 2025, the Company expects:


Metric ($ in millions, except per share data)		Year Ended<br><br>December 31, 2025<br><br>Guidance (1)
Net Income		$46 to $71
Total Portfolio RevPAR Growth (2)		+ 7.0% to + 10.0%
Total Portfolio RevPAR Growth, excluding Andaz Miami Beach (2)		+ 3.0% to + 6.0%
Adjusted EBITDAre		$245 to $270
Adjusted FFO Attributable to Common Stockholders		$175 to $200
Adjusted FFO Attributable to Common Stockholders per Diluted Share		$0.86 to $0.98
Diluted Weighted Average Shares Outstanding		203,000,000

(1)	Detailed reconciliations of Net Income to non-GAAP financial measures are provided later in this release.
(2)	RevPAR Growth reflects comparison to full year 2024.
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Full year 2025 guidance is based in part on the following full year assumptions:

●	Full year interest income of approximately $4 million to $5 million.
●	Full year corporate overhead expense (excluding deferred stock amortization) of approximately $22 million to $23 million, which includes $1.8 million of cost incurred in the first quarter in connection with a previously announced management
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transition. The management transition cost will not be included in the Company’s calculation of Adjusted EBITDAre and Adjusted FFO Attributable to Common Stockholders.
●	Full year interest expense of approximately $50 million to $53 million, including approximately $4 million in amortization of deferred financing costs.
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●	Full year preferred stock dividends of approximately $16 million to $17 million, which includes the Series G, H, and I cumulative redeemable preferred stock.
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Recent Developments

Corporate Responsibility Report. In February 2025, the Company published its 2024 Corporate Responsibility Report. The report includes details on Sunstone’s environmental sustainability, social responsibility and corporate governance (“ESG”) progress during 2023, as well details of the Company’s newly established 2035 environmental targets and certain additional ESG initiatives commenced in 2024. A copy of the report can be found on the Corporate Responsibility page of the Company’s website at www.sunstonehotels.com.

Dividend Update

On February 20, 2025, the Company’s Board of Directors authorized a cash dividend of $0.09 per share of its common stock. The Company’s Board of Directors also authorized cash dividends of $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 common and preferred dividends will be paid on April 15, 2025 to stockholders of record as of March 31, 2025.

The Company currently expects to continue to pay a quarterly cash common dividend throughout 2025. The level of any future quarterly dividends will be determined by the Company’s Board of Directors after considering long-term operating projections, expected capital requirements, and risks affecting the Company’s business.

Supplemental Disclosures

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

Earnings Call

The Company will host a conference call to discuss fourth quarter and full year 2024 results on February 21, 2025, at 1:00 p.m. Eastern Time (10:00 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 1-800-715-9871 and reference conference ID 1026321 to listen to the live call. A replay of the webcast will also be archived on the website.

About Sunstone Hotel Investors, Inc.

Sunstone Hotel Investors, Inc. is a lodging real estate investment trust (“REIT”) that as of the date of this release owns 15 hotels comprised of 7,253 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 well-located hotel and resort real estate. For further information, please visit Sunstone’s website at www.sunstonehotels.com. The Company’s website is provided as a reference only and any information on the website is not incorporated by reference in this release.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,” “will” and other similar terms and phrases, including opinions, references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: we own upper upscale and luxury hotels located in urban and resort destinations in an industry that is highly competitive; events beyond our control, including economic slowdowns or recessions, pandemics, natural disasters, civil unrest and terrorism; inflation may adversely affect our financial condition and results of operations; system security risks, data protection breaches, cyber-attacks and systems integration 4

issues, including those impacting the Company’s suppliers, hotel managers or franchisors; a significant portion of our hotels are geographically concentrated so we may be disproportionately harmed by economic conditions, competition, new hotel supply, real and personal property tax rates or natural disasters in these areas of the country; we face possible risks associated with the physical and transitional effects of climate change; uninsured or underinsured losses could harm our financial condition; the operating results of some of our hotels are significantly reliant upon group and transient business generated by large corporate customers, and the loss of such customers for any reason could harm our operating results; the increased use of virtual meetings and other similar technologies could lessen the need for business-related travel, and, therefore, demand for rooms in our hotels may be adversely affected; our hotels require ongoing capital investment and we may incur significant capital expenditures in connection with acquisitions, repositionings and other improvements, some of which are mandated by applicable laws or regulations or agreements with third parties, and the costs of such renovations, repositionings or improvements may exceed our expectations or cause other problems; delays in the acquisition, renovation or repositioning of hotel properties may have adverse effects on our results of operations and returns to our stockholders; accounting for the acquisition of a hotel property or other entity involves assumptions and estimations to determine fair value that could differ materially from the actual results achieved in future periods; volatility in the debt and equity markets may adversely affect our ability to acquire, renovate, refinance or sell our hotels; we may pursue joint venture investments that could be adversely affected by our lack of sole decision-making authority, our reliance on a co-venturer’s financial condition and disputes between us and our co-venturer; we may be subject to unknown or contingent liabilities related to recently sold or acquired hotels, as well as hotels we may sell or acquire in the future; we may seek to acquire a portfolio of hotels or a company, which could present more risks to our business and financial results than the acquisition of a single hotel; the sale of a hotel or portfolio of hotels is typically subject to contingencies, risks and uncertainties, any of which may cause us to be unsuccessful in completing the disposition; the illiquidity of real estate investments and the lack of alternative uses of hotel properties could significantly limit our ability to respond to adverse changes in the performance of our hotels; we may issue or invest in hotel loans, including subordinated or mezzanine loans, which could involve greater risks of loss than senior loans secured by income-producing real properties; if we make or invest in mortgage loans with the intent of gaining ownership of the hotel secured by or pledged to the loan, our ability to perfect an ownership interest in the hotel is subject to the sponsor’s willingness to forfeit the property in lieu of the debt; one of our hotels is subject to a ground lease with an unaffiliated party, the termination of which by the lessor for any reason, including due to our default on the lease, could cause us to lose the ability to operate the hotel altogether and may adversely affect our results of operations; because we are a REIT, we depend on third-parties to operate our hotels; we are subject to risks associated with our operators’ employment of hotel personnel; most of our hotels operate under a brand owned by Marriott, Hyatt, Hilton, Four Seasons or Montage, and should any of these brands experience a negative event, or receive negative publicity, our operating results may be harmed; our franchisors and brand managers may adopt new policies or change existing policies which could result in increased costs that could negatively impact our hotels; future adverse litigation judgments or settlements resulting from legal proceedings could have an adverse effect on our financial condition; claims by persons regarding our properties could affect the attractiveness of our hotels or cause us to incur additional expenses; the hotel business is seasonal and seasonal variations in business volume at our hotels will cause quarterly fluctuations in our revenue and operating results; changes in the debt and equity markets may adversely affect the value of our hotels; certain of our hotels have in the past become impaired and additional hotels may become impaired in the future; laws and governmental regulations may restrict the ways in which we use our hotel properties and increase the cost of compliance with such regulations, and noncompliance with such regulations could subject us to penalties, loss of value of our properties or civil damages; corporate responsibility, specifically related to environmental sustainability, social responsibility and corporate governance, or ESG, factors and commitments, may impose additional costs and expose us to new risks that could adversely affect our results of operations, financial condition and cash flows; our franchisors and brand managers may require us to make capital expenditures pursuant to property improvement plans or to comply with brand standards; termination of any of our franchise, management or operating lease agreements could cause us to lose business; the growth of alternative reservation channels could adversely affect our business and profitability; the failure of tenants in our hotels to make rent payments or otherwise comply with the material terms of our retail and restaurant leases may adversely affect our results of operations; we rely on our corporate and hotel senior management teams, the loss of whom may cause us to incur costs and harm our business; we could be harmed by inadvertent errors, misconduct or fraud that is difficult to detect; if we fail to maintain effective internal control over financial reporting and disclosure controls and procedures, we may not be able to accurately report our financial results or identify and prevent fraud; we have outstanding debt which may restrict our financial flexibility; our debt agreements contain various covenants, restrictions, requirements and other limitations, and should we default, we may be required to pay additional fees, provide additional security or repay the debt; defaulting on existing debt may limit our ability to access additional debt financing in the future; certain of our unsecured term loans are subject to variable interest rates, which creates uncertainty in the amount of interest expense we will incur in the future and may negatively impact our operating results; we may not be able to refinance our debt on favorable terms or at all; our stock repurchase program may not enhance long-term stockholder value, could cause volatility in the price of our common and preferred stock and could diminish our cash reserves; and other risks and uncertainties associated with the Company’s business described in its filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All forward-looking information provided herein is as of the date of this release, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.

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

Non-GAAP Financial Measures

We present the following non-GAAP financial measures that we believe are useful to investors as key supplemental measures of our operating performance: earnings before interest expense, taxes, depreciation and amortization for real estate, or EBITDAre; Adjusted EBITDAre (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, 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 as measures in determining the value of hotel acquisitions and dispositions.

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

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

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

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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.

●

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; the write-off of development costs associated with abandoned projects; property-level restructuring, severance, and management transition costs; pre-opening costs associated with extensive renovation projects such as the work being performed at The Confidante Miami Beach; debt resolution costs; lease terminations; property insurance restoration proceeds or uninsured losses; and other nonrecurring identified adjustments.

In addition, to derive Adjusted EBITDAre, we 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. We also exclude the effect of gains and losses on the disposition of undepreciated assets because we believe that including them in Adjusted EBITDAre is not consistent with reflecting the ongoing performance of our assets.

To derive Adjusted FFO attributable to common stockholders, we also exclude the noncash interest on our derivatives as we believe that these items are not reflective of our ongoing finance costs. Additionally, we exclude the real estate amortization of our right-of-use assets and related lease obligations (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. We also 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.

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 to EBITDAre, Adjusted EBITDAre, FFO attributable to common stockholders, Adjusted FFO attributable to common stockholders, hotel Adjusted EBITDAre and hotel Adjusted EBITDAre margins are set forth in the following pages of this release.

Sunstone Hotel Investors, Inc.

Consolidated Balance Sheets

(In thousands, except share and per share data)


	December 31,			December 31,
	2024		****	2023

Assets
Investment in hotel properties, net	$	2,856,032		$	2,585,279
Operating lease right-of-use assets, net		8,464			12,755
Cash and cash equivalents		107,199			426,403
Restricted cash		73,078			67,295
Accounts receivable, net		34,109			31,206
Prepaid expenses and other assets, net		27,757			26,383
Total assets	$	3,106,639		$	3,149,321

Liabilities
Debt, net of unamortized deferred financing costs	$	841,047		$	814,559
Operating lease obligations		12,019			16,735
Accounts payable and accrued expenses		52,722			48,410
Dividends and distributions payable		24,137			29,965
Other liabilities		72,694			73,014
Total liabilities		1,002,619			982,683

Commitments and contingencies

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 December 31, 2024 and 2023, 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 December 31, 2024 and 2023, 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 December 31, 2024 and 2023, stated at liquidation preference of $25.00 per share		100,000			100,000
Common stock, $0.01 par value, 500,000,000 shares authorized, 200,824,993 shares issued and outstanding at December 31, 2024 and 203,479,585 shares issued and outstanding at December 31, 2023		2,008			2,035
Additional paid in capital		2,395,702			2,416,417
Distributions in excess of retained earnings		(574,940)			(533,064)
Total stockholders' equity		2,104,020			2,166,638

Total liabilities and stockholders' equity	$	3,106,639		$	3,149,321

Sunstone Hotel Investors, Inc.

Consolidated Statements of Operations

(In thousands, except per share data)


		Quarter Ended December 31,				Year Ended December 31,
	****	2024		2023		2024		2023
		(unaudited)
Revenues
Room		$	133,191	$	134,973	$	559,061	$	619,277
Food and beverage			59,650		63,880		256,222		277,514
Other operating			21,929		20,372		90,526		89,689
Total revenues			214,770		219,225		905,809		986,480
Operating expenses
Room			36,020		35,246		146,369		158,002
Food and beverage			44,497		45,511		182,840		193,820
Other operating			5,170		5,690		23,323		23,721
Advertising and promotion			13,854		12,272		52,180		51,958
Repairs and maintenance			9,144		9,196		35,927		38,308
Utilities			6,667		5,978		26,576		27,622
Franchise costs			4,656		4,120		18,391		16,876
Property tax, ground lease and insurance			18,535		18,476		77,221		78,796
Other property-level expenses			28,388		27,593		110,833		120,247
Corporate overhead			5,787		7,421		29,050		31,412
Depreciation and amortization			32,666		29,135		124,507		127,062
Total operating expenses			205,384		200,638		827,217		867,824
Interest and other income			1,873		4,137		13,179		10,535
Interest expense			(10,440)		(16,768)		(50,125)		(51,679)
Gain on sale of assets, net			—		123,820		457		123,820
Gain on extinguishment of debt			—		8		59		9,938
Income before income taxes			819		129,784		42,162		211,270
Income tax benefit (provision), net			17		(2,799)		1,100		(4,562)
Net income			836		126,985		43,262		206,708
Preferred stock dividends			(3,931)		(3,226)		(15,228)		(13,988)
(Loss) income attributable to common stockholders		$	(3,095)	$	123,759	$	28,034	$	192,720

Basic and diluted per share amounts:
Basic and diluted (loss) income attributable to common stockholders per common share		$	(0.02)	$	0.60	$	0.14	$	0.93

Basic weighted average common shares outstanding			200,185		203,612		201,739		205,590
Diluted weighted average common shares outstanding			200,185		203,833		202,642		205,865

Distributions declared per common share		$	0.09	$	0.13	$	0.34	$	0.30

Sunstone Hotel Investors, Inc.

Reconciliation of Net Income to Non-GAAP Financial Measures

(Unaudited and in thousands)

Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre


	Quarter Ended December 31,					Year Ended December 31,
	2024		****	2023		2024			2023

Net income	$	836		$	126,985	$	43,262	$	206,708
Depreciation and amortization		32,666			29,135		124,507		127,062
Interest expense		10,440			16,768		50,125		51,679
Income tax (benefit) provision, net		(17)			2,799		(1,100)		4,562
Gain on sale of assets, net		—			(123,820)		(457)		(123,820)
EBITDAre		43,925			51,867		216,337		266,191

Amortization of deferred stock compensation		2,075			2,512		10,456		10,775
Amortization of right-of-use assets and obligations		(154)			(20)		(425)		(102)
Amortization of contract intangibles, net		—			—		—		(55)
Gain on extinguishment of debt		—			(8)		(59)		(9,938)
Gain on insurance recoveries		(116)			—		(430)		(3,722)
Pre-opening costs		1,181			—		2,633		—
Property-level legal settlement costs		1,182			—		1,182		—
Property-level severance		—			297		—		297
Adjustments to EBITDAre, net		4,168			2,781		13,357		(2,745)

Adjusted EBITDAre	$	48,093		$	54,648	$	229,694	$	263,446

Sunstone Hotel Investors, Inc.

Reconciliation of Net Income to Non-GAAP Financial Measures

(Unaudited and in thousands, except per share data)

Reconciliation of Net Income to FFO Attributable to Common Stockholders and

Adjusted FFO Attributable to Common Stockholders


		Quarter Ended December 31,					Year Ended December 31,
		2024		****	2023		2024			2023

Net income	****	$	836		$	126,985	$	43,262	$	206,708
Preferred stock dividends			(3,931)			(3,226)		(15,228)		(13,988)
Real estate depreciation and amortization			32,250			28,979		123,096		126,435
Gain on sale of assets, net			—			(123,820)		(457)		(123,820)
FFO attributable to common stockholders			29,155			28,918		150,673		195,335

Amortization of deferred stock compensation			2,075			2,512		10,456		10,775
Real estate amortization of right-of-use assets and obligations			(136)			(134)		(517)		(505)
Amortization of contract intangibles, net			314			105		1,147		357
Noncash interest on derivatives, net			(1,635)			3,600		(540)		252
Gain on extinguishment of debt			—			(8)		(59)		(9,938)
Gain on insurance recoveries			(116)			—		(430)		(3,722)
Pre-opening costs			1,181			—		2,633		—
Property-level legal settlement costs			1,182			—		1,182		—
Property-level severance			—			297		—		297
Prior year income tax provision (benefit), net			—			3,662		(1,530)		3,662
Adjustments to FFO attributable to common stockholders, net			2,865			10,034		12,342		1,178

Adjusted FFO attributable to common stockholders		$	32,020		$	38,952	$	163,015	$	196,513

FFO attributable to common stockholders per diluted share		$	0.14		$	0.14	$	0.74	$	0.95

Adjusted FFO attributable to common stockholders per diluted share		$	0.16		$	0.19	$	0.80	$	0.95

Basic weighted average shares outstanding			200,185			203,612		201,739		205,590
Shares associated with unvested restricted stock awards			2,048			613		1,204		508
Diluted weighted average shares outstanding			202,233			204,225		202,943		206,098

Sunstone Hotel Investors, Inc.

Reconciliation of Net Income to Non-GAAP Financial Measures

Guidance for Full Year 2025

(Unaudited and in thousands, except for per share amounts)

Reconciliation of Net Income to Adjusted EBITDAre


	Year Ended
	December 31, 2025
		Low	****		High

Net income	$	45,700		$	70,700
Depreciation and amortization		131,000			131,000
Interest expense		51,500			51,500
Income tax provision		1,000			1,000
Amortization of deferred stock compensation		10,000			10,000
Pre-opening costs		4,000			4,000
Management transition costs		1,800			1,800
Adjusted EBITDAre	$	245,000		$	270,000

Reconciliation of Net Income to Adjusted FFO Attributable to Common Stockholders


		Year Ended
		December 31, 2025
			Low	****		High

Net income	****	$	45,700		$	70,700
Preferred stock dividends			(16,500)			(16,500)
Real estate depreciation and amortization			129,500			129,500
Amortization of deferred stock compensation			10,000			10,000
Pre-opening costs			4,000			4,000
Management transition costs			1,800			1,800
Adjusted FFO attributable to common stockholders		$	174,500		$	199,500

Adjusted FFO attributable to common stockholders per diluted share		$	0.86		$	0.98

Diluted weighted average shares outstanding			203,000			203,000

Sunstone Hotel Investors, Inc.

Non-GAAP Financial Measures

Hotel Adjusted EBITDAre and Margins

(Unaudited and in thousands)


	Quarter Ended December 31,				Year Ended December 31,
	2024		2023		2024		2023

Comparable Hotel Adjusted EBITDAre Margin (1)		23.3%		25.1%		26.1%		28.1%
Comparable Hotel Adjusted EBITDAre Margin, Excluding The Confidante Miami Beach (1)		23.6%		25.7%		26.4%		28.5%


Total revenues	$	214,770	$	219,225	$	905,809	$	986,480
Non-hotel revenues (2)		—		—		—		(55)
Total Actual Hotel Revenues		214,770		219,225		905,809		986,425
Prior ownership hotel revenues (3)		—		13,567		17,737		52,030
Sold hotel revenues (4)		—		(11,131)		—		(96,713)
Comparable Hotel Revenues		214,770		221,661		923,546		941,742
The Confidante Miami Beach revenues (5)		(170)		(4,745)		(4,458)		(32,730)
Comparable Hotel Revenues, Excluding The Confidante Miami Beach	$	214,600	$	216,916	$	919,088	$	909,012


Net income	$	836	$	126,985	$	43,262	$	206,708
Non-hotel revenues (2)		—		—		—		(55)
Non-hotel operating expenses, net (6)		(360)		(274)		(1,240)		(1,169)
Property-level adjustments (7)		2,467		406		2,952		850
Corporate overhead		5,787		7,421		29,050		31,412
Depreciation and amortization		32,666		29,135		124,507		127,062
Interest and other income		(1,873)		(4,137)		(13,179)		(10,535)
Interest expense		10,440		16,768		50,125		51,679
Gain on sale of assets, net		—		(123,820)		(457)		(123,820)
Gain on extinguishment of debt		—		(8)		(59)		(9,938)
Income tax (benefit) provision, net		(17)		2,799		(1,100)		4,562
Actual Hotel Adjusted EBITDAre		49,946		55,275		233,861		276,756
Prior ownership hotel Adjusted EBITDAre (3)		—		5,723		7,232		20,268
Sold hotel Adjusted EBITDAre (4)		—		(5,420)		—		(32,024)
Comparable Hotel Adjusted EBITDAre		49,946		55,578		241,093		265,000
The Confidante Miami Beach Adjusted EBITDAre (5)		684		220		1,965		(5,881)
Comparable Hotel Adjusted EBITDAre, Excluding The Confidante Miami Beach	$	50,630	$	55,798	$	243,058	$	259,119

*Footnotes on following page 13

(1)	Comparable Hotel Adjusted EBITDAre Margin is calculated as Comparable Hotel Adjusted EBITDAre divided by Comparable Hotel Revenues. Comparable Hotel Adjusted EBITDAre Margin, Excluding The Confidante Miami Beach is calculated as Comparable Hotel Adjusted EBITDAre, Excluding The Confidante Miami Beach divided by Comparable Hotel Revenues, Excluding The Confidante Miami Beach.
(2)	Non-hotel revenues include the amortization of any favorable or unfavorable contract intangibles recorded in conjunction with the Company's hotel acquisitions.
---	---
(3)	Prior ownership hotel revenues and Adjusted EBITDAre include results for the Hyatt Regency San Antonio Riverwalk prior to the Company’s acquisition of the hotel in April 2024. The Company obtained prior ownership information from the previous owner of the Hyatt Regency San Antonio Riverwalk 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.
---	---
(4)	Sold hotel revenues and Adjusted EBITDAre include results for the Boston Park Plaza, sold in October 2023.
---	---
(5)	The Confidante Miami Beach is undergoing a comprehensive renovation and conversion to Andaz Miami Beach and results are not comparable to prior periods.
---	---
(6)	Non-hotel operating expenses, net include the amortization of hotel real estate-related right-of-use assets and obligations. Non-hotel operating expenses, net for the fourth quarter and full year of 2024 and for the full year of 2023 also include prior year property tax credits related to sold hotels.
---	---
(7)	Property-level adjustments for the fourth quarter and full year of 2024 include $0.1 million and $0.5 million, respectively, in taxes assessed on commercial rents at the Hyatt Regency San Antonio Riverwalk and Hyatt Regency San Francisco, $1.2 million and $2.6 million, respectively, in pre-opening costs at The Confidante Miami Beach, and $1.2 million for both the fourth quarter and full year of 2024 in legal settlements at Hyatt Regency San Francisco, JW Marriott New Orleans, Marriott Boston Long Wharf, Marriott Long Beach Downtown, Renaissance Orlando at SeaWorld ®, The Westin Washington, DC Downtown, and Wailea Beach Resort. Property-level adjustments for the full year of 2024 are net of a $1.3 million COVID-19-related relief grant received at the Marriott Boston Long Wharf. Property-level adjustments for the fourth quarter and full year of 2023 include $0.1 million and $0.6 million, respectively, in taxes assessed on commercial rents at the Hyatt Regency San Francisco, and $0.3 million for both the fourth quarter and full year of 2023 in severance at The Confidante Miami Beach.
---	---

Exhibit 99.2


<br><br><br><br>Supplemental Financial Information<br><br>For the quarter and year ended December 31, 2024<br><br>February 21, 2025<br><br>

Supplemental Financial Information February 21, 2025

Table of Contents


Corporate Profile And Disclosures Regarding Non-GAAP Financial Measures								2
Comparable Corporate Financial Information								6
Capitalization								12
Property-Level Data And Operating Statistics								15
Property-Level Revenues, Adjusted EBITDAre & Adjusted EBITDAre Margins								20

Supplemental Financial Information February 21, 2025

CORPORATE PROFILE AND DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES


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

Supplemental Financial Information February 21, 2025

About Sunstone

Sunstone Hotel Investors, Inc. (the “Company,” “we,” and “our”) (NYSE: SHO) is a lodging real estate investment trust (“REIT”) that as of February 21, 2025 owns 15 hotels comprised of 7,253 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 well-located hotel and resort real estate.

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

Corporate Headquarters 15 Enterprise, Suite 200 Aliso Viejo, CA 92656 (949) 330-4000

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

Aaron Reyes Chief Financial Officer (949) 382-3018


CORPORATE PROFILE AND DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES			Page 3

Supplemental Financial Information February 21, 2025

Non-GAAP Financial Measures

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


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

Supplemental Financial Information February 21, 2025

●	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.
---	---
●	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; the write-off of development costs associated with abandoned projects; property-level restructuring, severance, and management transition costs; pre-opening costs associated with extensive renovation projects such as the work being performed at The Confidante Miami Beach; debt resolution costs; lease terminations; property insurance restoration proceeds or uninsured losses; and other nonrecurring identified adjustments.
---	---


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

Supplemental Financial Information February 21, 2025

COMPARABLE CORPORATE FINANCIAL INFORMATION


COMPARABLE CORPORATE FINANCIAL INFORMATION			Page 6

Supplemental Financial Information February 21, 2025

Comparable Consolidated Statements of Operations

Q4 2024 – Q1 2024, FY 2024


	Quarter Ended (1)								Year Ended (1)
(Unaudited and in thousands, except per share data)	December 31,		September 30,		June 30,		March 31,		December 31,
	2024		2024		2024		2024		2024
Revenues
Room	$	133,191	$	138,759	$	153,790	$	144,437	$	570,177
Food and beverage		59,650		63,866		72,552		64,989		261,057
Other operating		21,929		23,767		25,339		21,277		92,312
Total revenues		214,770		226,392		251,681		230,703		923,546

Operating Expenses
Room		36,020		37,453		37,922		37,518		148,913
Food and beverage		44,497		46,286		48,312		46,368		185,463
Other expenses		86,414		86,989		88,490		87,896		349,789
Corporate overhead		5,787		7,577		8,168		7,518		29,050
Depreciation and amortization		32,666		31,689		31,112		31,063		126,530
Total operating expenses		205,384		209,994		214,004		210,363		839,745

Interest and other income		1,873		2,350		3,503		5,453		13,179
Interest expense		(10,440)		(15,982)		(12,693)		(11,010)		(50,125)
Income before income taxes		819		2,766		28,487		14,783		46,855
Income tax benefit (provision), net		17		(99)		(255)		(93)		(430)
Net income	$	836	$	2,667	$	28,232	$	14,690	$	46,425

Comparable Hotel Adjusted EBITDAre (2)	$	49,946	$	56,426	$	77,322	$	57,399	$	241,093

Comparable Adjusted EBITDAre (3)	$	48,093	$	53,567	$	75,651	$	59,615	$	236,926

Comparable Adjusted FFO attributable to common stockholders (4)	$	32,020	$	36,851	$	58,754	$	42,622	$	170,247

Comparable Adjusted FFO attributable to common stockholders per diluted share (4)	$	0.16	$	0.18	$	0.29	$	0.21	$	0.85

*Footnotes on page 8


COMPARABLE CORPORATE FINANCIAL INFORMATION			Page 7

Supplemental Financial Information February 21, 2025

Comparable Consolidated Statements of Operations

Footnotes

(1)	Includes results for all 15 hotels owned by the Company as of December 31, 2024. Also includes prior ownership results for the Hyatt Regency San Antonio Riverwalk acquired by the Company in April 2024, adjusted for the Company's pro forma depreciation expense. The Company obtained prior ownership information from the previous owner of the Hyatt Regency San Antonio Riverwalk 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. Excludes the gain on sale of assets, net, extinguishment of debt, and income tax related to hotels either sold or disposed of in prior years.
(2)	Comparable Hotel Adjusted EBITDAre reconciliation for the fourth quarter and full year of 2024 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 February 21, 2025. Comparable Hotel Adjusted EBITDAre presented for 2024 includes all hotels owned by the Company as of December 31, 2024.
---	---
(3)	Comparable Adjusted EBITDAre reconciliation for the four quarters and full year of 2024 can be found in the following pages and reflect the adjustments noted in Footnote 1 above.
---	---
(4)	Comparable Adjusted FFO attributable to common stockholders and Comparable Adjusted FFO attributable to common stockholders per diluted share reconciliations for the four quarters and full year of 2024 can be found in the following pages and reflect the adjustments noted in Footnote 1 above, along with pro forma adjustments to reflect the Company's repurchases of its common stock during the second, third, and fourth quarters of 2024 as if the repurchases had occurred on January 1, 2024.
---	---


COMPARABLE CORPORATE FINANCIAL INFORMATION			Page 8

Supplemental Financial Information February 21, 2025

Comparable Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre

Q4 2024 – Q1 2024, FY 2024


	Quarter Ended								Year Ended
	December 31,		September 30,		June 30,		March 31,		December 31,
(In thousands)	2024		2024		2024		2024		2024

Net income	$	836	$	3,249	$	26,142	$	13,035	$	43,262
Depreciation and amortization		32,666		31,689		31,112		29,040		124,507
Interest expense		10,440		15,982		12,693		11,010		50,125
Income tax (benefit) provision, net		(17)		(483)		255		(855)		(1,100)
Gain on sale of assets, net		—		—		—		(457)		(457)
EBITDAre		43,925		50,437		70,202		51,773		216,337

Amortization of deferred stock compensation		2,075		2,430		3,181		2,770		10,456
Amortization of right-of-use assets and obligations		(154)		(153)		(107)		(11)		(425)
Gain on extinguishment of debt		—		—		(38)		(21)		(59)
Gain on insurance recoveries		(116)		—		(314)		—		(430)
Pre-opening costs		1,181		853		599		—		2,633
Property-level legal settlement costs		1,182		—		—		—		1,182
Adjustments to EBITDAre, net		4,168		3,130		3,321		2,738		13,357

Adjusted EBITDAre		48,093		53,567		73,523		54,511		229,694
Acquisition hotel Adjusted EBITDAre (1)		—		—		2,128		5,104		7,232

Comparable Adjusted EBITDAre	$	48,093	$	53,567	$	75,651	$	59,615	$	236,926

*Footnotes on page 11


COMPARABLE CORPORATE FINANCIAL INFORMATION			Page 9

Supplemental Financial Information February 21, 2025

Comparable Reconciliation of Net Income to FFO and Adjusted FFO Attributable to Common Stockholders

Q4 2024 – Q1 2024, FY 2024


	Quarter Ended								Year Ended
	December 31,		September 30,		June 30,		March 31,		December 31,
(In thousands, except per share data)	2024		2024		2024		2024		2024

Net income	$	836	$	3,249	$	26,142	$	13,035	$	43,262
Preferred stock dividends		(3,931)		(3,931)		(3,683)		(3,683)		(15,228)
Real estate depreciation and amortization		32,250		31,320		30,771		28,755		123,096
Gain on sale of assets, net		—		—		—		(457)		(457)
FFO attributable to common stockholders		29,155		30,638		53,230		37,650		150,673

Amortization of deferred stock compensation		2,075		2,430		3,181		2,770		10,456
Real estate amortization of right-of-use assets and obligations		(136)		(129)		(130)		(122)		(517)
Amortization of contract intangibles, net		314		315		287		231		1,147
Noncash interest on derivatives, net		(1,635)		3,326		(189)		(2,042)		(540)
Gain on extinguishment of debt		—		—		(38)		(21)		(59)
Gain on insurance recoveries		(116)		—		(314)		—		(430)
Pre-opening costs		1,181		853		599		—		2,633
Property-level legal settlement costs		1,182		—		—		—		1,182
Prior year income tax benefit, net		—		(582)		—		(948)		(1,530)
Adjustments to FFO attributable to common stockholders, net		2,865		6,213		3,396		(132)		12,342

Adjusted FFO attributable to common stockholders		32,020		36,851		56,626		37,518		163,015
Acquisition hotel Adjusted FFO (1)		—		—		2,128		5,104		7,232

Comparable Adjusted FFO attributable to common stockholders	$	32,020	$	36,851	$	58,754	$	42,622	$	170,247

Comparable Adjusted FFO attributable to common stockholders per diluted share	$	0.16	$	0.18	$	0.29	$	0.21	$	0.85

Basic weighted average shares outstanding		200,185		201,402		202,758		202,631		201,739
Shares associated with unvested restricted stock awards		2,048		1,065		932		665		1,204
Diluted weighted average shares outstanding		202,233		202,467		203,690		203,296		202,943
Equity transactions (2)		(44)		(1,345)		(2,729)		(2,765)		(1,715)
Comparable diluted weighted average shares outstanding		202,189		201,122		200,961		200,531		201,228

*Footnotes on page 11


COMPARABLE CORPORATE FINANCIAL INFORMATION			Page 10

Supplemental Financial Information February 21, 2025

Comparable Reconciliation of Net Income to EBITDAre**, Adjusted EBITDAre,**

FFO and Adjusted FFO Attributable to Common Stockholders

Q4 2024 – Q1 2024, FY 2024 Footnotes

(1)	Acquisition hotel Adjusted EBITDAre and Adjusted FFO include prior ownership results for the Hyatt Regency San Antonio Riverwalk acquired by the Company in April 2024.
(2)	Equity transactions represent pro forma adjustments to reflect the Company's repurchases of its common stock during the second, third, and fourth quarters of 2024 as if the repurchases had occurred on January 1, 2024.
---	---


COMPARABLE CORPORATE FINANCIAL INFORMATION			Page 11


	Supplemental Financial Information February 21, 2025

CAPITALIZATION


CAPITALIZATION			Page 12

Supplemental Financial Information February 21, 2025

Comparative Capitalization Q4 2024 – Q4 2023


	December 31,			September 30,			June 30,			March 31,			December 31,
(In thousands, except per share data)	2024		****	2024		****	2024		****	2024		****	2023

Common Share Price & Dividends
At the end of the quarter	$	11.84		$	10.32		$	10.46		$	11.14		$	10.73
High during quarter ended	$	12.38		$	10.86		$	11.09		$	11.38		$	11.05
Low during quarter ended	$	10.00		$	9.46		$	9.96		$	10.42		$	9.04
Common dividends per share	$	0.09		$	0.09		$	0.09		$	0.07		$	0.13

Common Shares & Units
Common shares outstanding		200,825			200,919			203,390			203,674			203,480
Units outstanding		—			—			—			—			—
Total common shares and units outstanding		200,825			200,919			203,390			203,674			203,480

Capitalization ****
Market value of common equity	$	2,377,768		$	2,073,489		$	2,127,464		$	2,268,933		$	2,183,336
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
Total debt		845,000			817,437			817,978			818,512			819,050
Total capitalization	$	3,504,018		$	3,172,176		$	3,226,692		$	3,368,695		$	3,283,636

Total debt to total capitalization		24.1	%		25.8	%		25.4	%		24.3	%		24.9	%
Total debt and preferred equity to total capitalization		32.1	%		34.6	%		34.1	%		32.6	%		33.5	%


CAPITALIZATION			Page 13

Supplemental Financial Information February 21, 2025

Debt and Preferred Stock Summary Schedule


(In thousands)		Interest Rate /		Maturity			December 31, 2024
Unsecured Debt	****	Spread	****	Date (1)			Balance

Series A Senior Notes		4.69%		01/10/2026		$	65,000
Term Loan 3 (2)		5.83%		05/01/2026			225,000
Term Loan 4 (2)		5.47%		11/07/2026			100,000
Term Loan 1 (3)		5.27%		07/25/2027			175,000
Revolving Line of Credit		Adj. SOFR + 1.40%		07/25/2027			—
Series B Senior Notes		4.79%		01/10/2028			105,000
Term Loan 2 (3)		6.02%		01/25/2028			175,000
Total Unsecured Debt						$	845,000

Preferred Stock
Series G cumulative redeemable preferred (4)		3.750%		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 and Preferred Statistics (5)
				Debt Statistics			Debt and Preferred Statistics
% Fixed Rate Debt				52.7	%		64.5	%
% Floating Rate Debt				47.3	%		35.5	%
Average Interest Rate				5.49	%		5.47	%
Weighted Average Maturity of Debt				2.2 years			N/A

(1)	Maturity Date assumes the exercise of all available extensions for the Revolving Line of Credit, Term Loan 3, and Term Loan 4. By extending these loans, the Company's weighted average maturity of debt increases from 1.8 years to 2.2 years.
(2)	Interest rates on Term Loan 3 and Term Loan 4 are calculated on a leverage-based pricing grid ranging from 135 to 220 basis points over the applicable adjusted term SOFR. Term Loan 3 has an initial term of two years with one 12-month extension, which would result in an extended maturity of May 2026. Term Loan 4 has an initial term of one year with two six-month extensions, which would result in an extended maturity of November 2026. In January 2025, the Company entered into an interest rate swap on Term Loan 4. The swap is effective January 31, 2025, expires November 7, 2026, and fixes the SOFR rate on Term Loan 4 to 4.02%. The interest rate for Term Loan 4 includes the effect of the Company’s interest rate derivative swap.
---	---
(3)	Pursuant to the Second Amended Credit Agreement, interest rates on Term Loan 1 and Term Loan 2 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 1 includes the effects of the Company's interest rate derivative swaps.
---	---
(4)	The Series G cumulative redeemable preferred stock had an initial dividend rate equal to the Montage Healdsburg's annual net operating income yield on the Company's total investment in the resort. During the first and third quarters of 2024, the dividend rate increased to the greater of 3.0% and 4.5%, respectively, or the rate equal to the Montage Healdsburg's annual net operating income yield on the Company's total investment in the resort. Based on the dividends declared during 2024, this equates to an annual dividend yield of 3.750%. In the third quarter of 2025, the dividend rate will increase to the greater of 6.5% or the rate equal to the Montage Healdsburg's annual net operating income yield on the Company's total investment in the resort.
---	---
(5)	Debt and Preferred Statistics include the effects of the Company’s interest rate derivative swap on Term Loan 4 entered into in January 2025.
---	---


CAPITALIZATION			Page 14

Supplemental Financial Information February 21, 2025

PROPERTY-LEVEL DATA AND OPERATING STATISTICS


PROPERTY-LEVEL DATA AND OPERATING STATISTICS			Page 15

Supplemental Financial Information February 21, 2025

Hotel Information as of February 21, 2025


Hotel		****	Location	****	Brand	****	Number of Rooms	****	% of Total Rooms	****	Interest	****	Year Acquired

1	Hilton San Diego Bayfront (1) (2)		California		Hilton		1,190		16%		Leasehold		2011 / 2022
2	Hyatt Regency San Francisco		California		Hyatt		821		11%		Fee Simple		2013
3	The Westin Washington, DC Downtown		Washington DC		Marriott		807		11%		Fee Simple		2005
4	Renaissance Orlando at SeaWorld®		Florida		Marriott		781		11%		Fee Simple		2005
5	Hyatt Regency San Antonio Riverwalk		Texas		Hyatt		630		9%		Fee Simple		2024
6	Wailea Beach Resort		Hawaii		Marriott		545		8%		Fee Simple		2014
7	JW Marriott New Orleans (3)		Louisiana		Marriott		501		7%		Fee Simple		2011
8	Marriott Boston Long Wharf		Massachusetts		Marriott		415		6%		Fee Simple		2007
9	Marriott Long Beach Downtown		California		Marriott		376		5%		Fee Simple		2005
10	Andaz Miami Beach (4)		Florida		Hyatt		287		4%		Fee Simple		2022
11	The Bidwell Marriott Portland		Oregon		Marriott		258		4%		Fee Simple		2000
12	Hilton New Orleans St. Charles		Louisiana		Hilton		252		3%		Fee Simple		2013
13	Oceans Edge Resort & Marina		Florida		Independent		175		2%		Fee Simple		2017
14	Montage Healdsburg (5)		California		Montage		130		2%		Fee Simple		2021
15	Four Seasons Resort Napa Valley (5)		California		Four Seasons		85		1%		Fee Simple		2021

	Total Portfolio						7,253		100%

(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 that is not integral to the hotel’s operations.
---	---
(4)	The Confidante Miami Beach is expected to debut as Andaz Miami Beach in the first quarter of 2025, following the hotel’s transformative renovation and conversion.
---	---
(5)	The number of rooms excludes rooms provided by owners of the separately owned private residences at each resort who may periodically elect to participate in the applicable resort’s residential rental program.
---	---


PROPERTY-LEVEL DATA AND OPERATING STATISTICS			Page 16

Supplemental Financial Information February 21, 2025

Property-Level Operating Statistics

ADR, Occupancy, RevPAR and Total RevPAR (TRevPAR)

Q4 2024/2023


Hotels sorted by number of rooms	For the Quarters Ended December 31,
	ADR					Occupancy						RevPAR					TRevPAR
	2024		****	2023	2024 vs. 2023	2024	****	2023	2024 vs. 2023		2024		****	2023		2024 vs. 2023	2024		2023		2024 vs. 2023
Hilton San Diego Bayfront	$	257	$	253	1.4%	69.7%		76.0%	(630)	bps	$	179		$	192	(7.0)%	$	318	$	378	(15.7)%
Hyatt Regency San Francisco		270		307	(12.3)%	75.1%		66.6%	850	bps		202			205	(1.1)%		291		306	(4.9)%
The Westin Washington, DC Downtown (1)		292		279	4.8%	62.1%		58.4%	370	bps		181			163	11.5%		291		270	8.0%
Renaissance Orlando at SeaWorld®		182		180	1.0%	59.5%		60.4%	(90)	bps		108			109	(0.6)%		254		256	(0.8)%
Hyatt Regency San Antonio Riverwalk		196		206	(4.9)%	75.2%		71.2%	400	bps		148			147	0.5%		254		234	8.7%
Wailea Beach Resort		708		699	1.2%	58.6%		72.4%	(1,380)	bps		415			506	(18.1)%		600		731	(18.0)%
JW Marriott New Orleans		285		243	17.3%	67.6%		66.3%	130	bps		193			161	19.6%		254		233	9.1%
Marriott Boston Long Wharf		374		380	(1.5)%	78.8%		71.2%	760	bps		295			271	9.0%		423		380	11.3%
Marriott Long Beach Downtown (1)		217		210	3.3%	68.9%		49.0%	1,990	bps		150			103	45.3%		213		150	42.2%
The Bidwell Marriott Portland		146		156	(6.4)%	65.3%		52.6%	1,270	bps		95			82	16.2%		129		112	15.2%
Hilton New Orleans St. Charles		216		185	16.9%	71.6%		71.4%	20	bps		154			132	17.2%		178		153	16.4%
Oceans Edge Resort & Marina		268		315	(15.1)%	77.0%		76.6%	40	bps		206			242	(14.7)%		345		381	(9.6)%
Montage Healdsburg		928		1,044	(11.1)%	56.9%		47.9%	900	bps		528			500	5.6%		990		956	3.6%
Four Seasons Resort Napa Valley		1,229		1,484	(17.2)%	61.2%		40.8%	2,040	bps		752			606	24.2%		1,438		1,087	32.3%

Comparable Portfolio, Excluding Renovation Hotel (2)		305		312	(2.2)%	68.0%		65.9%	210	bps		207			205	1.0%		334		338	(1.2)%

Add: Renovation Hotel (1)
The Confidante Miami Beach		—		224	(100.0)%	0.0%		53.0%	(5,300)	bps		—			119	(100.0)%		6		152	(95.8)%

Comparable Portfolio (3)	$	305	$	308	(1.1)%	65.3%		65.3%	—	bps	$	199		$	201	(1.1)%	$	321	$	329	(2.5)%

*Footnotes on page 19


PROPERTY-LEVEL DATA AND OPERATING STATISTICS			Page 17

<br><br>
	Supplemental Financial Information February 21, 2025

Property-Level Operating Statistics

ADR, Occupancy, RevPAR and Total RevPAR (TRevPAR)

2024/2023


Hotels sorted by number of rooms	For the Years Ended December 31,
	ADR					Occupancy					RevPAR						TRevPAR
	2024		****	2023	2024 vs.<br><br>2023	2024	****	2023	2024 vs.<br><br>2023		2024		****	2023		2024 vs.<br><br>2023	2024		2023		****	2024 vs.<br><br>2023
Hilton San Diego Bayfront	$	278	$	276	0.9%	79.2%		82.8%	(360)	bps	$	220		$	228	(3.5)%	$	396	$	423		(6.4)%
Hyatt Regency San Francisco		286		302	(5.2)%	74.5%		69.6%	490	bps		213			210	1.5%		295		302		(2.4)%
The Westin Washington, DC Downtown (1)		282		265	6.6%	69.4%		56.7%	1,270	bps		196			150	30.4%		316		230		37.5%
Renaissance Orlando at SeaWorld®		196		192	1.9%	67.8%		70.4%	(260)	bps		133			135	(1.9)%		295		306		(3.5)%
Hyatt Regency San Antonio Riverwalk		197		201	(1.9)%	72.5%		70.9%	160	bps		143			142	0.3%		240		226		6.0%
Wailea Beach Resort		673		691	(2.6)%	68.6%		75.6%	(700)	bps		462			522	(11.7)%		689		759		(9.2)%
JW Marriott New Orleans		251		241	4.2%	68.0%		69.6%	(160)	bps		170			167	1.8%		234		232		0.6%
Marriott Boston Long Wharf		380		381	(0.3)%	80.5%		73.6%	690	bps		306			280	9.1%		432		392		10.3%
Marriott Long Beach Downtown (1)		223		223	0.2%	55.3%		71.3%	(1,600)	bps		123			159	(22.3)%		169		211		(20.2)%
The Bidwell Marriott Portland		152		169	(10.0)%	67.3%		55.7%	1,160	bps		102			94	8.8%		142		130		8.7%
Hilton New Orleans St. Charles		187		182	2.8%	70.3%		68.2%	210	bps		132			124	6.0%		153		150		2.0%
Oceans Edge Resort & Marina		307		355	(13.4)%	77.5%		76.6%	90	bps		238			272	(12.4)%		397		430		(7.8)%
Montage Healdsburg		1,026		1,065	(3.6)%	55.6%		52.5%	310	bps		571			559	2.1%		1,088		1,027		6.0%
Four Seasons Resort Napa Valley		1,322		1,513	(12.6)%	55.9%		45.2%	1,070	bps		739			684	8.1%		1,400		1,254		11.7%

Comparable Portfolio, Excluding Renovation Hotel (2)		311		315	(1.2)%	71.2%		70.3%	90	bps		222			222	0.0%		360		357		0.7%

Add: Renovation Hotel (1)
The Confidante Miami Beach		269		277	(2.9)%	11.6%		60.7%	(4,910)	bps		31			168	(81.5)%		41		265		(84.6)%

Comparable Portfolio (3)	$	311	$	314	(0.8)%	68.8%		69.9%	(110)	bps	$	214		$	219	(2.4)%	$	347	$	353		(1.8)%

*Footnotes on page 19


PROPERTY-LEVEL DATA AND OPERATING STATISTICS			Page 18

Supplemental Financial Information February 21, 2025

Property-Level Operating Statistics

Q4 and FY 2024/2023 Footnotes

(1)	Operating statistics for the fourth quarters and full years of 2024 and 2023 are impacted by renovation activity at Marriott Long Beach Downtown and The Confidante Miami Beach. In March 2024, operations at The Confidante Miami Beach were temporarily suspended to allow for extensive renovation work to be performed. The Company expects the resort to resume operations as Andaz Miami Beach in the first quarter of 2025. Operating statistics for the fourth quarter and full year of 2023 are also impacted by renovation activity at The Westin Washington, DC Downtown.
(2)	Comparable Portfolio, Excluding Renovation Hotel includes all hotels owned by the Company as of December 31, 2024, with the exception of The Confidante Miami Beach due to its renovation activity during the fourth quarters and full years of 2024 and 2023. Amounts included in this presentation for the Hyatt Regency San Antonio Riverwalk, acquired by the Company in April 2024, include both prior ownership results and the Company’s results. The Company obtained prior ownership information from the previous owner of the Hyatt Regency San Antonio Riverwalk 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)	Comparable Portfolio consists of all hotels owned by the Company as of December 31, 2024, and includes prior ownership information for the Hyatt Regency San Antonio Riverwalk as discussed in Note 2.
---	---


PROPERTY-LEVEL DATA AND OPERATING STATISTICS			Page 19

Supplemental Financial Information February 21, 2025

PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre &

ADJUSTED EBITDAre MARGINS


PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS			Page 20

Supplemental Financial Information February 21, 2025

Property-Level Revenues, Adjusted EBITDAre and Adjusted EBITDAre Margins

Q4 2024/2023


Hotels sorted by number of rooms	For the Quarters Ended December 31,
	2024								2023
(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	$	34,857		$	6,081		17.4%		$	41,358		$	11,484		27.8%		(1,040)	bps
Hyatt Regency San Francisco		21,984			1,521		6.9%			23,120			2,786		12.1%		(520)	bps
The Westin Washington, DC Downtown (1)		21,636			6,119		28.3%			20,037			3,633		18.1%		1,020	bps
Renaissance Orlando at SeaWorld®		18,254			4,514		24.7%			18,394			4,774		26.0%		(130)	bps
Hyatt Regency San Antonio Riverwalk		14,742			6,202		42.1%			13,567			5,723		42.2%		(10)	bps
Wailea Beach Resort		30,122			9,716		32.3%			36,804			14,244		38.7%		(640)	bps
JW Marriott New Orleans		11,697			4,692		40.1%			10,719			3,765		35.1%		500	bps
Marriott Boston Long Wharf		16,144			5,616		34.8%			14,499			5,320		36.7%		(190)	bps
Marriott Long Beach Downtown (1)		7,370			1,195		16.2%			5,157			138		2.7%		1,350	bps
The Bidwell Marriott Portland		3,059			166		5.4%			2,655			285		10.7%		(530)	bps
Hilton New Orleans St. Charles		4,117			1,597		38.8%			3,535			1,229		34.8%		400	bps
Oceans Edge Resort & Marina		5,546			1,686		30.4%			6,136			1,996		32.5%		(210)	bps
Montage Healdsburg		12,417			392		3.2%			11,438			900		7.9%		(470)	bps
Four Seasons Resort Napa Valley		12,655			1,133		9.0%			9,497			(479)		(5.0)%		1,400	bps

Comparable Portfolio, Excluding Renovation Hotel (2)		214,600			50,630		23.6%			216,916			55,798		25.7%		(210)	bps

Add: Renovation Hotel (1)
The Confidante Miami Beach		170			(684)		(402.4)%			4,745			(220)		(4.6)%		(39,780)	bps

Comparable Portfolio (3)		214,770			49,946		23.3%			221,661			55,578		25.1%		(180)	bps

Less: Prior Ownership (4)
Hyatt Regency San Antonio Riverwalk		—			—		N/A			(13,567)			(5,723)		42.2%		N/A

Add: Sold Hotel (5)		—			—		N/A			11,131			5,420		48.7%		N/A

Actual Portfolio (6)	$	214,770		$	49,946		23.3%		$	219,225		$	55,275		25.2%		N/A

*Footnotes on page 23


PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS			Page 21

Supplemental Financial Information February 21, 2025

Property-Level Revenues, Adjusted EBITDAre and Adjusted EBITDAre Margins

2024/2023


Hotels sorted by number of rooms	For the Years Ended December 31,
	2024								2023
(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	$	172,487		$	46,780		27.1%		$	183,695		$	58,457		31.8%		(470)	bps
Hyatt Regency San Francisco		88,551			8,108		9.2%			90,505			13,269		14.7%		(550)	bps
The Westin Washington, DC Downtown (1)		93,232			27,673		29.7%			67,630			12,019		17.8%		1,190	bps
Renaissance Orlando at SeaWorld®		84,426			24,217		28.7%			87,211			27,531		31.6%		(290)	bps
Hyatt Regency San Antonio Riverwalk		55,287			22,021		39.8%			52,030			20,268		39.0%		80	bps
Wailea Beach Resort		137,909			48,159		34.9%			151,546			58,213		38.4%		(350)	bps
JW Marriott New Orleans		42,879			15,367		35.8%			42,489			16,269		38.3%		(250)	bps
Marriott Boston Long Wharf		65,658			24,495		37.3%			59,360			21,456		36.1%		120	bps
Marriott Long Beach Downtown (1)		23,182			(27)		(0.1)%			28,844			7,098		24.6%		(2,470)	bps
The Bidwell Marriott Portland		13,363			2,121		15.9%			12,262			2,061		16.8%		(90)	bps
Hilton New Orleans St. Charles		14,135			4,638		32.8%			13,816			4,766		34.5%		(170)	bps
Oceans Edge Resort & Marina		25,426			8,339		32.8%			27,498			9,965		36.2%		(340)	bps
Montage Healdsburg		53,721			8,064		15.0%			48,741			5,214		10.7%		430	bps
Four Seasons Resort Napa Valley		48,832			3,103		6.4%			43,385			2,533		5.8%		60	bps

Comparable Portfolio, Excluding Renovation Hotel (2)		919,088			243,058		26.4%			909,012			259,119		28.5%		(210)	bps

Add: Renovation Hotel (1)
The Confidante Miami Beach		4,458			(1,965)		(44.1)%			32,730			5,881		18.0%		(6,210)	bps

Comparable Portfolio (3)		923,546			241,093		26.1%			941,742			265,000		28.1%		(200)	bps

Less: Prior Ownership (4)
Hyatt Regency San Antonio Riverwalk		(17,737)			(7,232)		N/A			(52,030)			(20,268)		39.0%		N/A

Add: Sold Hotel (5)		—			—		N/A			96,713			32,024		33.1%		N/A

Actual Portfolio (6)	$	905,809		$	233,861		25.8%		$	986,425		$	276,756		28.1%		N/A

*Footnotes on page 23


PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS			Page 22

Supplemental Financial Information February 21, 2025

Property-Level Revenues, Adjusted EBITDAre and Adjusted EBITDAre Margins

Q4 and FY 2024/2023 Footnotes

(1)	Hotel Adjusted EBITDAre for the fourth quarters and full years of 2024 and 2023 is impacted by renovation activity at Marriott Long Beach Downtown and The Confidante Miami Beach. In March 2024, operations at The Confidante Miami Beach were temporarily suspended to allow for extensive renovation work to be performed. The Company expects the resort to resume operations as Andaz Miami Beach in the first quarter of 2025. Hotel Adjusted EBITDAre for the fourth quarter and full year of 2023 is also impacted by renovation activity at The Westin Washington, DC Downtown.
(2)	Comparable Portfolio, Excluding Renovation Hotel includes all hotels owned by the Company as of December 31, 2024, with the exception of The Confidante Miami Beach due to its renovation activity during the fourth quarters and full years of 2024 and 2023. Amounts included in this presentation for the Hyatt Regency San Antonio Riverwalk, acquired by the Company in April 2024, include both prior ownership results and the Company's results. The Company obtained prior ownership information from the previous owner of the Hyatt Regency San Antonio Riverwalk 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)	Comparable Portfolio consists of all hotels owned by the Company as of December 31, 2024, and includes prior ownership information for the Hyatt Regency San Antonio Riverwalk as discussed in Note 2.
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(4)	Prior Ownership includes results for the Hyatt Regency San Antonio Riverwalk prior to the Company’s acquisition of the hotel in April 2024 as discussed in Note 2.
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(5)	Sold Hotel includes the Boston Park Plaza sold in October 2023.
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(6)	Actual Portfolio includes results for the 15 hotels owned by the Company during the fourth quarters and full years of 2024 and 2023.
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PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS			Page 23