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false000129894600012989462023-05-022023-05-020001298946us-gaap:CommonStockMember2023-05-022023-05-020001298946us-gaap:RedeemablePreferredStockMember2023-05-022023-05-02

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
May 2, 2023 
DiamondRock Hospitality Company
(Exact name of registrant as specified in charter)
Maryland   001-32514   20-1180098
(State or Other Jurisdiction
of Incorporation)		   (Commission
File Number)		   (IRS Employer
Identification No.)
2 Bethesda Metro Center, Suite 1400
Bethesda, MD 20814
(Address of Principal Executive Offices) (Zip Code)

(Registrant’s telephone number, including area code): (240) 744-1150
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 (see General Instruction A.2. below):
☐ 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 per share DRH New York Stock Exchange
8.250% Series A Cumulative Redeemable Preferred Stock, par value $0.01 per share DRH Pr A 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 check mark 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.      ☐





This Current Report on Form 8-K (“Current Report”) 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 “believe,” “expect,” “intend,” “project,” “anticipate,” “position,” and other similar terms and phrases, including 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 which 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 national and local economic and business conditions, including the impact of COVID-19 on occupancy rates at our hotels and the demand for hotel products and services, and those risks and uncertainties described from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K filed on February 24, 2023. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this Current Report is as of the date of this Current Report, and we undertake no obligation to update any forward-looking statement to conform the statement to actual results or changes in our expectations.

ITEM 2.02. Results of Operations and Financial Condition.

On May 4, 2023, DiamondRock Hospitality Company issued a press release announcing its financial results for the quarter ended March 31, 2023. A copy of that press release is furnished as Exhibit 99.1 and is incorporated by reference herein.

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

ITEM 5.07. Submission of Matters to a Vote of Security Holders.

On May 2, 2023, the Company held its annual meeting of stockholders (the “Annual Meeting”). The results of the voting at the Annual Meeting were as follows:

1.The following directors were elected to the Company’s Board of Directors (constituting the entire Board of Directors) to serve until the 2024 annual meeting of stockholders and until their respective successors are duly elected and qualified:
Name For Against Abstain Broker Non-Votes
William W. McCarten 191,501,908 8,072,466 23,229 2,419,318
Mark W. Brugger 197,478,145 2,096,595 22,863 2,419,318
Timothy R. Chi 181,876,654 17,697,725 23,224 2,419,318
Michael A. Hartmeier 195,289,075 4,285,192 23,336 2,419,318
Kathleen A. Merrill 196,018,653 3,537,011 41,939 2,419,318
William J. Shaw 191,431,646 8,142,732 23,225 2,419,318
Bruce D. Wardinski 193,408,981 6,165,392 23,230 2,419,318
Tabassum S. Zalotrawala 195,850,351 3,704,768 42,484 2,419,318






2.The Company’s stockholders approved, on a non-binding, advisory basis, the compensation of the Company’s named executive officers.

For Against Abstain Broker Non-Votes
184,665,892 14,904,635 27,076 2,419,318

3.The Company’s stockholders recommended a frequency of one year for the vote, on a non-binding, advisory basis, on the compensation of the Company’s named executive officers.

1 Year 2 Years 3 Years Abstain
191,837,036 7,203 7,693,666 59,698

4.The Company’s stockholders ratified the appointment of KPMG LLP as the Company’s independent auditor for the fiscal year ending December 31, 2023.
For Against Abstain
197,531,960 4,464,248 20,713


ITEM 9.01. Financial Statements and Exhibits.

(d) Exhibits.

The following exhibits are included with this report:
Exhibit No. Description
99.1                    Press Release, dated May 4, 2023
101.SCH                Inline XBRL Taxonomy Extension Schema Document
101.CAL                Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF                Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB                Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE                Inline XBRL Taxonomy Extension Presentation Linkbase Document
104                    Cover Page Interactive Data File










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 hereunto duly authorized.
 
    DIAMONDROCK HOSPITALITY COMPANY
Dated: May 4, 2023     By:  
/s/ Briony R. Quinn
      Briony R. Quinn
      Senior Vice President and Treasurer






EX-99.1 2 exhibit9911q2023.htm EX-99.1 Document

drhlogopressreleasea35a.gif

COMPANY CONTACTS    

Jeff Donnelly
Chief Financial Officer
(240) 744-1190

Briony Quinn
Senior Vice President
(240) 744-1196

FOR IMMEDIATE RELEASE

DIAMONDROCK HOSPITALITY COMPANY REPORTS FIRST QUARTER RESULTS
Comparable Revenues Increase 18.0% over 2022 and 14.2% Over 2019

BETHESDA, Maryland, Thursday, May 4, 2023 – DiamondRock Hospitality Company (the “Company”) (NYSE: DRH), a lodging-focused real estate investment trust that owns a portfolio of 35 premium hotels and resorts in the United States, today announced results of operations for the quarter ended March 31, 2023.

First Quarter 2023 Highlights

•Net Income: Net income was $9.2 million and earnings per diluted share was $0.03.
•Comparable Revenues: Comparable total revenues were $240.4 million, a 18.0% increase over 2022 and a 14.2% increase over 2019.
•Comparable RevPAR: Comparable RevPAR was $185.26, a 16.9% increase over 2022 and a 13.8% increase over 2019.
•Comparable Hotel Adjusted EBITDA: Comparable Hotel Adjusted EBITDA was $61.9 million, a 15.9% increase over 2022 and a 19.5% increase over 2019.
•Comparable Hotel Adjusted EBITDA Margin: Comparable Hotel Adjusted EBITDA margin was 25.76%, a 46 basis point decrease over 2022 and a 117 basis point increase over 2019.
•Adjusted EBITDA: Adjusted EBITDA was $55.4 million, a 23.4% increase over 2022 and a 12.6% increase over 2019.
•Adjusted FFO: Adjusted FFO was $38.0 million and Adjusted FFO per diluted share was $0.18.
•Dividends: The Company declared a quarterly cash dividend of $0.03 per common share.

“DiamondRock's portfolio once again delivered record-setting revenues and profits in the first quarter,” said Mark W. Brugger, President and Chief Executive Officer of DiamondRock Hospitality Company. “We experienced robust travel demand and expect revenues to set a new record for the full year 2023 as we benefit from a favorable footprint for our hotels. Our high-quality portfolio, located in prime urban and highly desirable resort markets, is strategically designed to take advantage of the leading travel demands in order to position DiamondRock to distinguish itself now and in the future.”






Operating Results

Please see “Non-GAAP Financial Measures” attached to this press release for an explanation of the terms “EBITDAre,” “Adjusted EBITDA,” “Hotel Adjusted EBITDA,” “Hotel Adjusted EBITDA Margin,” “FFO” and “Adjusted FFO” and a reconciliation of these measures to net income. Comparable operating results include all hotels currently owned for all periods presented, except the Kimpton Fort Lauderdale Beach Resort, which opened in April 2021. See “Reconciliation of Comparable Operating Results” attached to this press release for a reconciliation to historical amounts.
Quarter Ended March 31, Change From
2023 2022 2019 2022 2019
($ amounts in millions, except hotel statistics and per share amounts)
Comparable Operating Results (1)
ADR $ 277.92  $ 283.70  $ 225.75  (2.0) % 23.1  %
Occupancy 66.7  % 55.9  % 72.1  % 10.8  % (5.4) %
RevPAR $ 185.26  $ 158.52  $ 162.86  16.9  % 13.8  %
Total RevPAR $ 280.77  $ 238.37  $ 246.70  17.8  % 13.8  %
Revenues $ 240.4  $ 203.7  $ 210.5  18.0  % 14.2  %
Hotel Adjusted EBITDA $ 61.9  $ 53.4  $ 51.8  15.9  % 19.5  %
Hotel Adjusted EBITDA Margin 25.76  % 26.22  % 24.59  % (46 bps) 117 bps
Available Rooms 856,128  854,442  853,274  1,686  2,854 
Actual Operating Results (2)
Revenues $ 243.6  $ 196.8  $ 202.4  23.8  % 20.4  %
Net income $ 9.2  $ 10.1  $ 9.0  (8.9) % 2.2  %
Earnings per diluted share $ 0.03  $ 0.04  $ 0.04  (25.0) % (25.0) %
Adjusted EBITDA $ 55.4  $ 44.9  $ 49.2  23.4  % 12.6  %
Adjusted FFO $ 38.0  $ 30.9  $ 41.9  23.0  % (9.3) %
Adjusted FFO per diluted share $ 0.18  $ 0.14  $ 0.21  28.6  % (14.3) %
(1) Amounts represent the pre-acquisition operating results for Bourbon Orleans Hotel from January 1, 2019 to July 28, 2021, Henderson Park Inn from January 1, 2019 to July 29, 2021, Henderson Beach Resort from January 1, 2019 to December 22, 2021, Tranquility Bay Beachfront Resort from January 1, 2019 to January 5, 2022 and Lake Austin Spa Resort from January 1, 2019 to November 20, 2022 and exclude the operating results of the Kimpton Fort Lauderdale Beach Resort as the hotel opened in April 2021. The pre-acquisition operating results were obtained from the sellers of the hotels during the acquisition due diligence process. We have made no adjustments to the amounts provided to us by the seller. The pre-acquisition operating results were not audited or reviewed by the Company's independent auditors.

(2) Actual operating results include the operating results of all hotels for the Company's respective ownership periods.

Ground Lease Buyout

On April 20, 2023, the Company acquired the fee simple interest in a land parcel underlying the parking structure at the Renaissance Worthington Hotel that had been subject to a ground lease. The purchase price of $1.8 million represents a 5.2% capitalization rate on the annual rent.

Capital Expenditures

The Company invested approximately $21.6 million in capital improvements at its hotels during the three months ended March 31, 2023. The Company continues to expect to spend $100 million to $115 million on capital improvements at its hotels in 2023, which includes the completion of certain projects that commenced in 2022. Significant projects in 2023 include the following:


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•Hilton Boston Downtown/Faneuil Hall: The Company commenced a comprehensive renovation in the fourth quarter of 2022 to reposition the hotel as an experiential lifestyle property with completion expected in mid-2023.
•Hilton Burlington Lake Champlain: The Company commenced a repositioning of the hotel to rebrand it as a Curio Collection hotel. The repositioning is expected to be completed in the third quarter of 2023 and includes a new restaurant concept by a well-known, award-winning chef.
•Salt Lake City Marriott: The Company commenced a renovation of the guestrooms, which is expected to be completed in the third quarter of 2023.
•Bourbon Orleans Hotel: The Company expects to commence a renovation of the public areas and a refresh of the guestrooms in the second half of 2023.

Balance Sheet and Liquidity

The Company ended the quarter with $585.0 million of liquidity, comprised of $76.5 million of unrestricted corporate cash, $108.5 million of unrestricted cash at its hotels and full capacity on its $400 million senior unsecured credit facility. As of March 31, 2023, the Company had $1.2 billion of total debt outstanding, which consisted of $800.0 million of unsecured term loans and $385.3 million of property-specific, non-recourse mortgage debt. During the quarter ended March 31, 2023, the Company entered into $150 million of interest rate swaps resulting in 64% of the Company's total debt being at fixed rates.

Share Repurchase Program

During the quarter ended March 31, 2023, the Company repurchased 56,400 shares of its common stock at an average price of $7.26 per share for a total purchase price of $0.4 million. Since October 2022, the Company has repurchased 1.6 million shares of it common stock at an average price of $7.79 per share.

Dividends

The Company declared a quarterly cash dividend of $0.03 per common share. The dividend was paid on April 12, 2023 to shareholders of record as of March 31, 2023.

The Company declared a quarterly dividend of $0.515625 per share on its 8.250% Series A Cumulative Redeemable Preferred Stock to shareholders of record as of March 17, 2023. The dividend was paid on March 31, 2023.

Earnings Call

The Company will host a conference call to discuss its first quarter results on Friday, May 5, 2023, at 9:00 a.m. Eastern Time (ET). The conference call will be accessible by telephone and through the internet. Interested individuals are requested to register for the call by visiting https://investor.drhc.com. A replay of the conference call webcast will be archived and available online.

About the Company
DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in leisure destinations and top gateway markets. The Company currently owns 35 premium quality hotels with over 9,600 rooms. The Company has strategically positioned its portfolio to be operated both under leading global brand families as well as independent boutique hotels in the lifestyle segment. For further information on the Company and its portfolio, please visit DiamondRock Hospitality Company’s website at www.drhc.com.

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 “believe,” “expect,” “intend,” “project,” “forecast,” “plan” and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance

3

and involve known and unknown risks, uncertainties and other factors which 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 adverse impact of the novel coronavirus (COVID-19) on the U.S., regional and global economies, travel, the hospitality industry, and the financial condition and results of operations of the Company and its hotels; national and local economic and business conditions, including the potential for additional terrorist attacks, that will affect occupancy rates at the Company’s hotels and the demand for hotel products and services; operating risks associated with the hotel business; relationships with property managers; the ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; changes in travel patterns, taxes and government regulations which influence or determine wages, prices, construction procedures and costs; and other risk factors contained in the Company’s filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release 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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DIAMONDROCK HOSPITALITY COMPANY

CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)

March 31, 2023 December 31, 2022
ASSETS (unaudited)
Property and equipment, net $ 2,742,565  $ 2,748,476 
Right-of-use assets 98,747  99,047 
Restricted cash 46,039  39,614 
Due from hotel managers 149,005  176,708 
Prepaid and other assets 70,657  76,131 
Cash and cash equivalents 76,503  67,564 
Total assets
 $ 3,183,516  $ 3,207,540 
LIABILITIES AND EQUITY
Liabilities:
Mortgage and other debt, net of unamortized debt issuance costs $ 384,374  $ 386,655 
Unsecured term loans, net of unamortized debt issuance costs 799,204  799,138 
Senior unsecured credit facility —  — 
Total debt 1,183,578  1,185,793 
Lease liabilities 111,437  110,875 
Due to hotel managers 110,270  123,682 
Deferred rent 66,205  65,097 
Unfavorable contract liabilities, net 60,654  61,069 
Accounts payable and accrued expenses 40,927  43,120 
Distributions declared and unpaid 6,500  12,946 
Deferred income related to key money, net 8,672  8,780 
Total liabilities
 1,588,243  1,611,362 
Equity:
Preferred stock, $0.01 par value; 10,000,000 shares authorized;
    8.250% Series A Cumulative Redeemable Preferred Stock (liquidation preference $25.00 per share), 4,760,000 shares issued and outstanding at March 31, 2023 and December 31, 2022 48  48 
Common stock, $0.01 par value; 400,000,000 shares authorized; 209,789,192 and 209,374,830 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively 2,098  2,094 
Additional paid-in capital 2,286,824  2,288,433 
Accumulated other comprehensive income 153  — 
Distributions in excess of earnings (700,287) (700,694)
Total stockholders’ equity
 1,588,836  1,589,881 
Noncontrolling interests 6,437  6,297 
Total equity
 1,595,273  1,596,178 
Total liabilities and equity
 $ 3,183,516  $ 3,207,540 



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DIAMONDROCK HOSPITALITY COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
(unaudited)
Three Months Ended March 31,
2023 2022
Revenues:
Rooms
 $ 160,673  $ 132,170 
Food and beverage
 59,777  45,748 
Other
 23,103  18,915 
Total revenues
 243,553  196,833 
Operating Expenses:
Rooms
 40,203  33,830 
Food and beverage
 43,150  33,221 
Other departmental and support expenses 61,968  48,537 
Management fees
 4,988  4,020 
Franchise fees
 8,077  5,810 
Other property-level expenses 24,117  21,972 
Depreciation and amortization
 27,472  26,655 
Impairment losses
 —  2,843 
Corporate expenses
 7,867  6,033 
Business interruption insurance income —  (499)
Total operating expenses, net
 217,842  182,422 
Interest expense
 17,172  4,119 
Interest (income) and other expense (income), net (423) 286 
  Total other expenses, net
 16,749  4,405 
Income before income taxes
 8,962  10,006 
Income tax benefit
 226  54 
Net income
9,188  10,060 
Less: Net income attributable to noncontrolling interests
 (32) (32)
Net income attributable to the Company
 9,156  10,028 
Distributions to preferred stockholders (2,454) (2,454)
Net income attributable to common stockholders $ 6,702  $ 7,574 
Earnings per share:
Earnings per share available to common stockholders - basic
 $ 0.03  $ 0.04 
Earnings per share available to common stockholders - diluted
 $ 0.03  $ 0.04 
Weighted-average number of common shares outstanding:
Basic
 211,411,519  212,491,561 
Diluted
 211,814,722  213,150,818 







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Non-GAAP Financial Measures

We use the following non-GAAP financial measures that we believe are useful to investors as key measures of our operating performance: EBITDA, EBITDAre, Adjusted EBITDA, Hotel EBITDA, Hotel Adjusted EBITDA, FFO and Adjusted FFO. These measures should not be considered in isolation or as a substitute for measures of performance in accordance with U.S. GAAP. EBITDA, EBITDAre, Adjusted EBITDA, Hotel EBITDA, Hotel Adjusted EBITDA, FFO and Adjusted FFO, as calculated by us, may not be comparable to other companies that do not define such terms exactly as the Company.

Use and Limitations of Non-GAAP Financial Measures

Our management and Board of Directors use EBITDA, EBITDAre, Adjusted EBITDA, Hotel EBITDA, Hotel Adjusted EBITDA, FFO and Adjusted FFO to evaluate the performance of our hotels and to facilitate comparisons between us and other lodging REITs, hotel owners who are not REITs and other capital intensive companies. The use of these non-GAAP financial measures has certain limitations. These non-GAAP financial measures as presented by us, may not be comparable to non-GAAP financial measures as calculated by other real estate companies. These measures do not reflect certain expenses or expenditures that we incurred and will incur, such as depreciation, interest and capital expenditures. We compensate for these limitations by separately considering the impact of these excluded items to the extent they are material to operating decisions or assessments of our operating performance. Our reconciliations to the most comparable U.S. GAAP financial measures, and our consolidated statements of operations and cash flows, include interest expense, capital expenditures, and other excluded items, all of which should be considered when evaluating our performance, as well as the usefulness of our non-GAAP financial measures.

These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with U.S. GAAP. They should not be considered as alternatives to operating profit, cash flow from operations, or any other operating performance measure prescribed by U.S. GAAP. These non-GAAP financial measures reflect additional ways of viewing our operations that we believe, when viewed with our U.S. GAAP results and the reconciliations to the corresponding U.S. 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.

EBITDA, EBITDAre and FFO

EBITDA represents net income (calculated in accordance with U.S. GAAP) excluding: (1) interest expense; (2) provision for income taxes, including income taxes applicable to sale of assets; and (3) depreciation and amortization. The Company computes EBITDAre in accordance with the National Association of Real Estate Investment Trusts ("Nareit") guidelines, as defined in its September 2017 white paper "Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate." EBITDAre represents net income (calculated in accordance with U.S. GAAP) adjusted for: (1) interest expense; (2) provision for income taxes, including income taxes applicable to sale of assets; (3) depreciation and amortization; (4) gains or losses on the disposition of depreciated property including gains or losses on change of control; (5) impairment write-downs of depreciated property and of investments in unconsolidated affiliates caused by a decrease in value of depreciated property in the affiliate; and (6) adjustments to reflect the entity's share of EBITDAre of unconsolidated affiliates.

We believe EBITDA and EBITDAre are useful to an investor in evaluating our operating performance because they help investors evaluate and compare the results of our operations from period to period by removing the impact of our capital structure (primarily interest expense) and our asset base (primarily depreciation and amortization, and in the case of EBITDAre, impairment and gains or losses on dispositions of depreciated property) from our operating results. In addition, covenants included in our debt agreements use EBITDA as a measure of financial compliance. We also use EBITDA and EBITDAre as measures in determining the value of hotel acquisitions and dispositions.

The Company computes FFO in accordance with standards established by the Nareit, which defines FFO as net income determined in accordance with U.S. GAAP, excluding gains or losses from sales of properties and impairment losses, plus real estate related depreciation and amortization. The Company believes that the presentation of FFO provides useful information to investors regarding its operating performance because it is a measure of the Company's operations without regard to specified non-cash items, such as real estate related depreciation and amortization and gains or losses on the sale of assets. The Company also uses FFO as one measure in assessing its operating results.

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Hotel EBITDA

Hotel EBITDA represents net income excluding: (1) interest expense, (2) income taxes, (3) depreciation and amortization, (4) corporate general and administrative expenses (shown as corporate expenses on the consolidated statements of operations), and (5) hotel acquisition costs. We believe that Hotel EBITDA provides our investors a useful financial measure to evaluate our hotel operating performance, excluding the impact of our capital structure (primarily interest), our asset base (primarily depreciation and amortization), and our corporate-level expenses (corporate expenses and hotel acquisition costs). With respect to Hotel EBITDA, we believe that excluding the effect of corporate-level expenses provides a more complete understanding of the operating results over which individual hotels and third-party management companies have direct control. We believe property-level results provide investors with supplemental information on the ongoing operational performance of our hotels and effectiveness of the third-party management companies operating our business on a property-level basis.

Adjustments to EBITDAre, FFO and Hotel EBITDA

We adjust EBITDAre, FFO and Hotel EBITDA when evaluating our 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 that the presentation of Adjusted EBITDA, Adjusted FFO and Hotel Adjusted EBITDA when combined with U.S. GAAP net income, EBITDAre, FFO and Hotel EBITDA, is beneficial to an investor's complete understanding of our consolidated and property-level operating performance. Hotel Adjusted EBITDA margins are calculated as Hotel Adjusted EBITDA divided by total hotel revenues. We adjust EBITDAre, FFO and Hotel EBITDA for the following items:

•Non-Cash Lease Expense and Other Amortization: We exclude the non-cash expense incurred from the straight line recognition of expense from our ground leases and other contractual obligations and the non-cash amortization of our favorable and unfavorable contracts, originally recorded in conjunction with certain hotel acquisitions. We exclude these non-cash items because they do not reflect the actual cash amounts due to the respective lessors and service providers in the current period and they are of lesser significance in evaluating our actual performance for that period.

•Cumulative Effect of a Change in Accounting Principle: The Financial Accounting Standards Board promulgates new accounting standards that require or permit the consolidated statement of operations to reflect the cumulative effect of a change in accounting principle. We exclude the effect of these adjustments, which include the accounting impact from prior periods, because they do not reflect the Company’s actual underlying performance for the current period.

•Gains or Losses from Early Extinguishment of Debt: We exclude the effect of gains or losses recorded on the early extinguishment of debt because these gains or losses result from transaction activity related to the Company’s capital structure that we believe are not indicative of the ongoing operating performance of the Company or our hotels.

•Hotel Acquisition Costs: We exclude hotel acquisition costs expensed during the period because we believe these transaction costs are not reflective of the ongoing performance of the Company or our hotels.

•Severance Costs: We exclude corporate severance costs, or reversals thereof, incurred with the termination of corporate-level employees and severance costs incurred at our hotels related to lease terminations or structured severance programs because we believe these costs do not reflect the ongoing performance of the Company or our hotels.

•Hotel Manager Transition Items: We exclude the transition items associated with a change in hotel manager because we believe these items do not reflect the ongoing performance of the Company or our hotels.

•Hotel Pre-Opening Costs: We exclude the pre-opening costs associated with the redevelopment or rebranding of a hotel because we believe these items do not reflect the ongoing performance of the Company or our hotels.

•Other Items:  From time to time we incur costs or realize gains that we consider outside the ordinary course of business and that we do not believe reflect the ongoing performance of the Company or our hotels. Such items may include, but are not limited to, the following: lease preparation costs incurred to prepare vacant space for marketing; management or franchise contract termination fees; gains or losses from legal settlements; costs incurred related to natural disasters; and gains on property insurance claim settlements, other than income related to business interruption insurance.

In addition, to derive Adjusted FFO we exclude any fair value adjustments to interest rate swaps. We exclude these non-cash amounts because they do not reflect the underlying performance of the Company.



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Reconciliations of Non-GAAP Measures

EBITDA, EBITDAre and Adjusted EBITDA

The following tables are reconciliations of our GAAP net income to EBITDA, EBITDAre and Adjusted EBITDA (in thousands):
Three Months Ended March 31,
2023 2022 2019
Net income $ 9,188  $ 10,060  $ 8,980 
Interest expense 17,172  4,119  11,662 
Income tax benefit (226) (54) (3,849)
Real estate related depreciation and amortization 27,472  26,655  28,996 
EBITDA 53,606  40,780  45,789 
Impairment losses —  2,843  — 
EBITDAre
 53,606  43,623  45,789 
Non-cash lease expense and other amortization 1,550  1,568  1,715 
Professional fees and pre-opening costs related to Frenchman's Reef (1)
 —  —  1,367 
Hotel pre-opening costs 216  —  — 
Hotel manager transition items —  249  297 
Severance costs (2)
 —  (532) — 
Adjusted EBITDA $ 55,372  $ 44,908  $ 49,168 
Year Ended December 31,
(1)Represents pre-opening costs related to the re-opening of Frenchman's Reef, as well as legal and professional fees and other costs incurred at Frenchman's Reef as a result of Hurricane Irma that are not covered by insurance.
(2)Consists of severance costs incurred, and adjustments thereto, associated with the elimination of positions at our hotels, which are classified within other hotel expenses on the consolidated statement of operations.

Hotel EBITDA and Hotel Adjusted EBITDA
    The following table is a reconciliation of our GAAP net income to Hotel EBITDA and Hotel Adjusted EBITDA (in thousands):
Three Months Ended March 31,
2023 2022 2019
Net income $ 9,188  $ 10,060  $ 8,980 
Interest expense 17,172  4,119  11,662 
Income tax benefit (226) (54) (3,849)
Real estate related depreciation and amortization 27,472  26,655  28,996 
EBITDA 53,606  40,780  45,789 
Corporate expenses 7,867  6,033  7,064 
Interest and other (income) expense, net (423) 286  (303)
Impairment losses —  2,843  — 
Professional fees and pre-opening costs related to Frenchman's Reef (1)
 —  —  1,367 
Hotel EBITDA 61,050  49,942  53,917 
Non-cash lease expense and other amortization 1,550  1,568  1,715 
Hotel pre-opening costs 216  —  — 
Hotel manager transition items —  249  297 
Severance costs (2)
 —  (532) — 
Hotel Adjusted EBITDA $ 62,816  $ 51,227  $ 55,929 
Year Ended December 31,
(1)Represents pre-opening costs related to the re-opening of Frenchman's Reef, as well as legal and professional fees and other costs incurred at Frenchman's Reef as a result of Hurricane Irma that are not covered by insurance.
(2)Consists of severance costs incurred, or adjustments thereto, associated with the elimination of positions at our hotels, which are classified within other hotel expenses on the consolidated statement of operations.

9

FFO and Adjusted FFO
The following tables are reconciliations of our GAAP net income to FFO and Adjusted FFO (in thousands):
Three Months Ended March 31,
2023 2022 2019
Net income $ 9,188  $ 10,060  $ 8,980 
Real estate related depreciation and amortization 27,472  26,655  28,996 
Impairment losses —  2,843  — 
FFO 36,660  39,558  37,976 
Distribution to preferred stockholders (2,454) (2,454) — 
FFO available to common stock and unit holders 34,206  37,104  37,976 
Non-cash lease expense and other amortization 1,550  1,568  1,715 
Professional fees and pre-opening costs related to Frenchman's Reef (1)
 —  —  1,367 
Severance costs (2)
 —  (532) — 
Hotel pre-opening costs 216  —  — 
Hotel manager transition items —  249  297 
Fair value adjustments to interest rate swaps 2,014  (7,502) 572 
Adjusted FFO available to common stock and unit holders $ 37,986  $ 30,887  $ 41,927 
Adjusted FFO available to common stock and unit holders, per diluted share $ 0.18  $ 0.14  $ 0.21 
Year Ended December 31,
(1)Represents pre-opening costs related to the re-opening of Frenchman's Reef, as well as legal and professional fees and other costs incurred at Frenchman's Reef as a result of Hurricane Irma that are not covered by insurance.
(2)Consists of severance costs incurred, or adjustments thereto, associated with the elimination of positions at our hotels, which are classified within other hotel expenses on the consolidated statement of operations.
Reconciliation of Comparable Operating Results

The following presents the revenues, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA Margin together with comparable prior year results, which excludes the results for our 2021 dispositions (in thousands):
Three Months Ended March 31,
2023 2022 2019
Revenues $ 243,553  $ 196,833  $ 202,375 
Hotel revenues from prior ownership (1)
 (3,175) 6,839  19,393 
Hotel revenues from sold hotels (2)
 —  —  (11,265)
Comparable Revenues $ 240,378  $ 203,672  $ 210,503 
Hotel Adjusted EBITDA $ 62,816  $ 51,227  $ 55,929 
Hotel Adjusted EBITDA from prior ownership (1)
 (887) 2,172  3,758 
Hotel Adjusted EBITDA from sold hotels (2)
 —  —  (7,920)
Comparable Hotel Adjusted EBITDA $ 61,929  $ 53,399  $ 51,767 
Hotel Adjusted EBITDA Margin 25.79  % 26.03  % 27.64  %
Comparable Hotel Adjusted EBITDA Margin 25.76  % 26.22  % 24.59  %
Year Ended December 31,
(1) Amounts represent the pre-acquisition operating results for Bourbon Orleans Hotel from January 1, 2019 to July 28, 2021, Henderson Park Inn from January 1, 2019 to July 29, 2021, Henderson Beach Resort from January 1, 2019 to December 22, 2021, Tranquility Bay Beachfront Resort from January 1, 2019 to January 5, 2022 and Lake Austin Spa Resort from January 1, 2019 to November 20, 2022. The pre-acquisition operating results of the Kimpton Fort Lauderdale Beach Resort are excluded from all periods as the hotel opened in April 2021. The pre-acquisition operating results were obtained from the sellers of the hotels during the acquisition due diligence process. We have made no adjustments to the amounts provided to us by the seller. The pre-acquisition operating results were not audited or reviewed by the Company's independent auditors.

10

(2) Amounts represent the operating results of Frenchman's Reef and The Lexington Hotel.


Selected Quarterly Comparable Operating Information

The following tables are presented to provide investors with selected quarterly comparable operating information. The operating information includes historical quarterly operating results for our portfolio, excluding the Kimpton Fort Lauderdale Beach Resort since the hotel opened in April 2021.

Quarter 1, 2019 Quarter 2, 2019 Quarter 3, 2019 Quarter 4, 2019 Full Year 2019
ADR $ 225.75  $ 254.63  $ 241.37  $ 244.35  $ 242.03 
Occupancy 72.1  % 82.3  % 81.2  % 75.1  % 77.7  %
RevPAR $ 162.86  $ 209.59  $ 195.88  $ 183.60  $ 188.07 
Total RevPAR $ 246.70  $ 306.75  $ 278.99  $ 268.73  $ 275.36 
Revenues (in thousands) $ 210,503  $ 264,731  $ 243,528  $ 234,573  $ 953,335 
Hotel Adjusted EBITDA (in thousands) $ 51,767  $ 90,392  $ 73,486  $ 65,779  $ 281,424 
Hotel Adjusted EBITDA Margin 24.59  % 34.14  % 30.18  % 28.04  % 29.52  %
Available Rooms 853,274  863,014  872,896  872,896  3,462,080 

Quarter 1, 2022 Quarter 2, 2022 Quarter 3, 2022 Quarter 4, 2022 Full Year 2022
ADR $ 283.70  $ 300.68  $ 283.87  $ 291.05  $ 290.21 
Occupancy 55.9  % 74.9  % 75.1  % 67.3  % 68.4  %
RevPAR $ 158.52  $ 225.19  $ 213.19  $ 195.99  $ 198.37 
Total RevPAR $ 238.37  $ 331.56  $ 311.71  $ 293.64  $ 294.03 
Revenues (in thousands) $ 203,672  $ 286,578  $ 272,659  $ 256,938  $ 1,019,847 
Hotel Adjusted EBITDA (in thousands) $ 53,399  $ 103,654  $ 85,804  $ 76,981  $ 319,838 
Hotel Adjusted EBITDA Margin 26.22  % 36.17  % 31.47  % 29.96  % 31.36  %
Available Rooms 854,442  864,323  874,702  875,012  3,468,479 

Quarter 1, 2023
ADR $ 277.92 
Occupancy 66.7  %
RevPAR $ 185.26 
Total RevPAR $ 280.77 
Revenues (in thousands) $ 240,378 
Hotel Adjusted EBITDA (in thousands) $ 61,929 
Hotel Adjusted EBITDA Margin 25.76  %
Available Rooms 856,128 

11

Market Capitalization as of March 31, 2023
(in thousands)
Enterprise Value
Common equity capitalization (at March 31, 2023 closing price of $8.13/share)
 $ 1,739,271 
Preferred equity capitalization (at liquidation value of $25.00/share) 119,000 
Consolidated debt (face amount) 1,185,330 
Cash and cash equivalents (76,503)
Total enterprise value
 $ 2,967,098 
Share Reconciliation
Common shares outstanding 209,789 
Operating partnership units 1,075 
Unvested restricted stock held by management and employees 1,222 
Share grants under deferred compensation plan 1,847 
Combined shares and units 213,933
Debt Summary as of March 31, 2023
(dollars in thousands)
Loan Interest Rate Term Outstanding Principal Maturity
Courtyard New York Manhattan / Midtown East 4.40% Fixed 75,698  August 2024
Worthington Renaissance Fort Worth Hotel 3.66% Fixed 75,147  May 2025
Hotel Clio 4.33% Fixed 57,122  July 2025
Westin Boston Seaport District 4.36% Fixed 177,363  November 2025
     Unamortized debt issuance costs (956)
Total mortgage debt, net of unamortized debt issuance costs 384,374 
Unsecured term loan SOFR + 1.35% Variable 500,000  January 2028
Unsecured term loan SOFR + 1.35% Variable 300,000 
January 2025 (1)
     Unamortized debt issuance costs (796)
Unsecured term loans, net of unamortized debt issuance costs 799,204 
Senior unsecured credit facility SOFR + 1.40% Variable — 
September 2026 (1)
Total debt, net of unamortized debt issuance costs $ 1,183,578 
Weighted-average interest rate of fixed rate debt 3.87%
Total weighted-average interest rate (2)
 4.88%

(1)    May be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions.
(2)    Weighted-average interest rate includes effect of interest rate swaps.

12

Operating Statistics – First Quarter
Number of Rooms ADR Occupancy RevPAR
1Q 2023 1Q 2022 B/(W) 2022 1Q 2023 1Q 2022 B/(W) 2022 1Q 2023 1Q 2022 B/(W) 2022
Atlanta Marriott Alpharetta 318  $ 159.23  $ 141.87  12.2  % 62.6  % 41.6  % 21.0  % $ 99.61  $ 59.03  68.7  %
Bourbon Orleans Hotel 220  $ 260.14  $ 244.94  6.2  % 80.9  % 49.6  % 31.3  % $ 210.46  $ 121.61  73.1  %
Cavallo Point, The Lodge at the Golden Gate 142  $ 566.26  $ 683.10  (17.1) % 52.8  % 44.6  % 8.2  % $ 299.21  $ 304.93  (1.9) %
Chicago Marriott Downtown Magnificent Mile 1,200  $ 188.98  $ 168.57  12.1  % 39.5  % 27.4  % 12.1  % $ 74.71  $ 46.13  62.0  %
Courtyard Denver Downtown 177  $ 178.98  $ 151.12  18.4  % 69.1  % 60.0  % 9.1  % $ 123.67  $ 90.65  36.4  %
Courtyard New York Manhattan/Fifth Avenue 189  $ 201.95  $ 161.28  25.2  % 93.5  % 82.9  % 10.6  % $ 188.81  $ 133.69  41.2  %
Courtyard New York Manhattan/Midtown East 321  $ 233.43  $ 199.77  16.8  % 87.9  % 63.6  % 24.3  % $ 205.28  $ 127.03  61.6  %
Embassy Suites by Hilton Bethesda 272  $ 142.06  $ 113.40  25.3  % 61.6  % 26.4  % 35.2  % $ 87.57  $ 29.97  192.2  %
Havana Cabana Key West 106  $ 379.67  $ 411.65  (7.8) % 87.9  % 93.8  % (5.9) % $ 333.90  $ 386.07  (13.5) %
Henderson Beach Resort 233  $ 361.12  $ 411.26  (12.2) % 43.1  % 44.3  % (1.2) % $ 155.70  $ 182.13  (14.5) %
Henderson Park Inn 37  $ 479.08  $ 511.93  (6.4) % 42.5  % 60.6  % (18.1) % $ 203.43  $ 310.39  (34.5) %
Hilton Boston Downtown/Faneuil Hall 403  $ 228.24  $ 174.41  30.9  % 49.0  % 63.0  % (14.0) % $ 111.77  $ 109.95  1.7  %
Hilton Burlington Lake Champlain 258  $ 165.81  $ 157.63  5.2  % 63.2  % 58.6  % 4.6  % $ 104.76  $ 92.30  13.5  %
Hilton Garden Inn New York/Times Square Central 282  $ 193.29  $ 162.46  19.0  % 85.3  % 77.8  % 7.5  % $ 164.87  $ 126.40  30.4  %
Hotel Clio 199  $ 298.34  $ 258.96  15.2  % 61.8  % 62.4  % (0.6) % $ 184.29  $ 161.68  14.0  %
Hotel Emblem San Francisco 96  $ 284.99  $ 187.82  51.7  % 63.7  % 53.8  % 9.9  % $ 181.55  $ 101.10  79.6  %
Hotel Palomar Phoenix 242  $ 301.38  $ 247.83  21.6  % 73.7  % 76.8  % (3.1) % $ 222.03  $ 190.39  16.6  %
Kimpton Fort Lauderdale Beach Resort 96  $ 273.10  $ 285.15  (4.2) % 87.5  % 76.7  % 10.8  % $ 239.00  $ 218.78  9.2  %
Kimpton Shorebreak Resort 157  $ 292.14  $ 297.03  (1.6) % 75.6  % 71.8  % 3.8  % $ 220.94  $ 213.36  3.6  %
L'Auberge de Sedona 88  $ 958.17  $ 1,046.12  (8.4) % 57.5  % 68.5  % (11.0) % $ 550.94  $ 716.30  (23.1) %
Lake Austin Spa Resort 40  $ 1,122.11  $ 1,149.57  (2.4) % 55.7  % 70.6  % (14.9) % $ 624.64  $ 811.08  (23.0) %
Margaritaville Beach House Key West 186  $ 495.09  $ 579.43  (14.6) % 85.1  % 92.0  % (6.9) % $ 421.38  $ 532.94  (20.9) %
Orchards Inn Sedona 70  $ 291.48  $ 309.21  (5.7) % 59.5  % 63.7  % (4.2) % $ 173.50  $ 196.91  (11.9) %
Renaissance Charleston Historic District Hotel 167  $ 333.13  $ 311.69  6.9  % 84.5  % 80.3  % 4.2  % $ 281.51  $ 250.35  12.4  %
Salt Lake City Marriott Downtown at City Creek 510  $ 199.71  $ 176.07  13.4  % 67.2  % 49.0  % 18.2  % $ 134.17  $ 86.21  55.6  %
The Gwen Hotel 311  $ 222.60  $ 213.18  4.4  % 65.2  % 58.2  % 7.0  % $ 145.07  $ 124.11  16.9  %
The Hythe Vail 344  $ 627.60  $ 663.43  (5.4) % 84.2  % 67.0  % 17.2  % $ 528.21  $ 444.73  18.8  %
The Landing Lake Tahoe Resort & Spa 82  $ 362.47  $ 408.90  (11.4) % 31.0  % 46.5  % (15.5) % $ 112.33  $ 189.99  (40.9) %
The Lodge at Sonoma Resort 182  $ 361.03  $ 367.07  (1.6) % 54.5  % 48.0  % 6.5  % $ 196.63  $ 176.30  11.5  %
Tranquility Bay Beachfront Resort 103  $ 813.34  $ 944.15  (13.9) % 74.1  % 83.1  % (9.0) % $ 602.42  $ 784.45  (23.2) %
Westin Boston Waterfront 793  $ 203.87  $ 194.05  5.1  % 71.7  % 53.7  % 18.0  % $ 146.25  $ 104.27  40.3  %
Westin Fort Lauderdale Beach Resort 433  $ 348.32  $ 336.96  3.4  % 87.9  % 87.7  % 0.2  % $ 306.27  $ 295.38  3.7  %
Westin San Diego Bayview 436  $ 214.73  $ 175.00  22.7  % 73.9  % 53.0  % 20.9  % $ 158.76  $ 92.81  71.1  %
Westin Washington D.C. City Center 410  $ 214.83  $ 175.98  22.1  % 68.0  % 35.2  % 32.8  % $ 146.02  $ 62.02  135.4  %
Worthington Renaissance Fort Worth Hotel 504  $ 196.60  $ 194.19  1.2  % 74.1  % 64.3  % 9.8  % $ 145.65  $ 124.90  16.6  %
Comparable Total (1)
 9,511  $ 277.92  $ 283.70  (2.0) % 66.7  % 55.9  % 10.8  % $ 185.26  $ 158.52  16.9  %
(1) Amounts exclude the Kimpton Fort Lauderdale Beach Resort as the hotel opened during 2021.
13


14


  Operating Statistics – First Quarter
Number of Rooms ADR Occupancy RevPAR
1Q 2023 1Q 2019 B/(W) 2019 1Q 2023 1Q 2019 B/(W) 2019 1Q 2023 1Q 2019 B/(W) 2019
Atlanta Marriott Alpharetta 318  $ 159.23  $ 177.33  (10.2) % 62.6  % 70.5  % (7.9) % $ 99.61  $ 124.93  (20.3) %
Bourbon Orleans Hotel 220  $ 260.14  $ 238.23  9.2  % 80.9  % 82.4  % (1.5) % $ 210.46  $ 196.37  7.2  %
Cavallo Point, The Lodge at the Golden Gate 142  $ 566.26  $ 437.76  29.4  % 52.8  % 63.4  % (10.6) % $ 299.21  $ 277.38  7.9  %
Chicago Marriott Downtown Magnificent Mile 1,200  $ 188.98  $ 158.35  19.3  % 39.5  % 51.7  % (12.2) % $ 74.71  $ 81.79  (8.7) %
Courtyard Denver Downtown 177  $ 178.98  $ 171.92  4.1  % 69.1  % 73.3  % (4.2) % $ 123.67  $ 126.00  (1.8) %
Courtyard New York Manhattan/Fifth Avenue 189  $ 201.95  $ 212.18  (4.8) % 93.5  % 77.4  % 16.1  % $ 188.81  $ 164.30  14.9  %
Courtyard New York Manhattan/Midtown East 321  $ 233.43  $ 190.02  22.8  % 87.9  % 92.0  % (4.1) % $ 205.28  $ 174.85  17.4  %
Embassy Suites by Hilton Bethesda 272  $ 142.06  $ 172.21  (17.5) % 61.6  % 65.3  % (3.7) % $ 87.57  $ 112.46  (22.1) %
Havana Cabana Key West 106  $ 379.67  $ 254.41  49.2  % 87.9  % 94.7  % (6.8) % $ 333.90  $ 240.94  38.6  %
Henderson Beach Resort 233  $ 361.12  $ 253.18  42.6  % 43.1  % 39.0  % 4.1  % $ 155.70  $ 98.85  57.5  %
Henderson Park Inn 37  $ 479.08  $ 350.71  36.6  % 42.5  % 52.3  % (9.8) % $ 203.43  $ 183.47  10.9  %
Hilton Boston Downtown/Faneuil Hall 403  $ 228.24  $ 197.84  15.4  % 49.0  % 83.5  % (34.5) % $ 111.77  $ 165.25  (32.4) %
Hilton Burlington Lake Champlain 258  $ 165.81  $ 130.74  26.8  % 63.2  % 70.7  % (7.5) % $ 104.76  $ 92.39  13.4  %
Hilton Garden Inn New York/Times Square Central 282  $ 193.29  $ 181.10  6.7  % 85.3  % 98.0  % (12.7) % $ 164.87  $ 177.48  (7.1) %
Hotel Clio 199  $ 298.34  $ 240.96  23.8  % 61.8  % 46.5  % 15.3  % $ 184.29  $ 112.09  64.4  %
Hotel Emblem San Francisco 96  $ 284.99  $ 247.10  15.3  % 63.7  % 57.5  % 6.2  % $ 181.55  $ 142.06  27.8  %
Hotel Palomar Phoenix 242  $ 301.38  $ 233.06  29.3  % 73.7  % 88.2  % (14.5) % $ 222.03  $ 205.66  8.0  %
Kimpton Shorebreak Resort 157  $ 292.14  $ 236.80  23.4  % 75.6  % 75.3  % 0.3  % $ 220.94  $ 178.23  24.0  %
L'Auberge de Sedona 88  $ 958.17  $ 575.73  66.4  % 57.5  % 80.4  % (22.9) % $ 550.94  $ 462.91  19.0  %
Lake Austin Spa Resort 40  $ 1,122.11  $ 791.68  41.7  % 55.7  % 63.0  % (7.3) % $ 624.64  $ 498.54  25.3  %
Margaritaville Beach House Key West 186  $ 495.09  $ 310.04  59.7  % 85.1  % 94.1  % (9.0) % $ 421.38  $ 291.63  44.5  %
Orchards Inn Sedona 70  $ 291.48  $ 255.22  14.2  % 59.5  % 73.9  % (14.4) % $ 173.50  $ 188.58  (8.0) %
Renaissance Charleston Historic District Hotel 167  $ 333.13  $ 236.72  40.7  % 84.5  % 83.8  % 0.7  % $ 281.51  $ 198.44  41.9  %
Salt Lake City Marriott Downtown at City Creek 510  $ 199.71  $ 173.62  15.0  % 67.2  % 59.2  % 8.0  % $ 134.17  $ 102.73  30.6  %
The Gwen Hotel 311  $ 222.60  $ 188.98  17.8  % 65.2  % 70.4  % (5.2) % $ 145.07  $ 133.05  9.0  %
The Hythe Vail 344  $ 627.60  $ 440.49  42.5  % 84.2  % 82.4  % 1.8  % $ 528.21  $ 362.79  45.6  %
The Landing Lake Tahoe Resort & Spa 82  $ 362.47  $ 275.79  31.4  % 31.0  % 53.0  % (22.0) % $ 112.33  $ 146.21  (23.2) %
The Lodge at Sonoma Resort 182  $ 361.03  $ 233.68  54.5  % 54.5  % 61.5  % (7.0) % $ 196.63  $ 143.63  36.9  %
Tranquility Bay Beachfront Resort 103  $ 813.34  $ 492.18  65.3  % 74.1  % 91.7  % (17.6) % $ 602.42  $ 451.20  33.5  %
Westin Boston Waterfront 793  $ 203.87  $ 202.24  0.8  % 71.7  % 65.5  % 6.2  % $ 146.25  $ 132.39  10.5  %
Westin Fort Lauderdale Beach Resort 433  $ 348.32  $ 254.27  37.0  % 87.9  % 95.5  % (7.6) % $ 306.27  $ 242.76  26.2  %
Westin San Diego Bayview 436  $ 214.73  $ 189.85  13.1  % 73.9  % 77.5  % (3.6) % $ 158.76  $ 147.20  7.9  %
Westin Washington D.C. City Center 410  $ 214.83  $ 201.14  6.8  % 68.0  % 77.5  % (9.5) % $ 146.02  $ 155.88  (6.3) %
Worthington Renaissance Fort Worth Hotel 504  $ 196.60  $ 188.12  4.5  % 74.1  % 79.4  % (5.3) % $ 145.65  $ 149.42  (2.5) %
Comparable Total (1)
 9,511  $ 277.92  $ 225.75  23.1  % 66.7  % 72.1  % (5.4) % $ 185.26  $ 162.86  13.8  %
(1) Amounts exclude the Kimpton Fort Lauderdale Beach Resort as the hotel opened during 2021.



15


.
16


Hotel Adjusted EBITDA Reconciliation - First Quarter 2023
Net Income / (Loss) Plus: Plus: Plus: Equals: Hotel Adjusted EBITDA
Total Revenues Depreciation Interest Expense
Adjustments (1)
Atlanta Marriott Alpharetta $ 4,017  $ 939  $ 364  $ —  $ —  $ 1,303 
Bourbon Orleans Hotel $ 5,064  $ 1,429  $ 837  $ —  $ 6  $ 2,272 
Cavallo Point, The Lodge at the Golden Gate $ 10,393  $ 894  $ 1,392  $ —  $ 94  $ 2,380 
Chicago Marriott Downtown Magnificent Mile $ 15,284  $ (2,595) $ 3,654  $ 6  $ (397) $ 668 
Courtyard Denver Downtown $ 2,198  $ 276  $ 377  $ —  $ —  $ 653 
Courtyard New York Manhattan/Fifth Avenue $ 3,263  $ (755) $ 345  $ —  $ 253  $ (157)
Courtyard New York Manhattan/Midtown East $ 6,206  $ (1,002) $ 501  $ 886  $ —  $ 385 
Embassy Suites by Hilton Bethesda $ 2,565  $ (2,163) $ 575  $ —  $ 1,477  $ (111)
Havana Cabana Key West $ 4,001  $ 1,543  $ 278  $ —  $ —  $ 1,821 
Henderson Beach Resort $ 6,557  $ (1,008) $ 999  $ —  $ —  $ (9)
Henderson Park Inn $ 1,071  $ (249) $ 252  $ —  $ —  $ 3 
Hilton Boston Downtown/Faneuil Hall $ 4,786  $ (1,544) $ 1,124  $ —  $ —  $ (420)
Hilton Burlington Lake Champlain $ 3,272  $ (430) $ 568  $ —  $ —  $ 138 
Hilton Garden Inn New York/Times Square Central $ 4,752  $ (235) $ 639  $ —  $ —  $ 404 
Hotel Clio $ 5,353  $ (921) $ 862  $ 629  $ 5  $ 575 
Hotel Emblem San Francisco $ 2,001  $ (30) $ 297  $ —  $ —  $ 267 
Hotel Palomar Phoenix $ 7,654  $ 1,981  $ 660  $ —  $ 181  $ 2,822 
Kimpton Fort Lauderdale Beach Resort $ 3,175  $ 583  $ 304  $ —  $ —  $ 887 
Kimpton Shorebreak Resort $ 4,527  $ 780  $ 412  $ —  $ —  $ 1,192 
L'Auberge de Sedona $ 6,862  $ 1,435  $ 361  $ —  $ —  $ 1,796 
Lake Austin Spa Resort $ 4,950  $ 456  $ 628  $ —  $ —  $ 1,084 
Margaritaville Beach House Key West $ 9,221  $ 4,078  $ 800  $ —  $ —  $ 4,878 
Orchards Inn Sedona $ 2,048  $ 439  $ 92  $ —  $ 42  $ 573 
Renaissance Charleston Historic District Hotel $ 5,401  $ 1,874  $ 465  $ —  $ —  $ 2,339 
Salt Lake City Marriott Downtown at City Creek $ 8,291  $ 2,492  $ 567  $ —  $ 11  $ 3,070 
The Gwen Hotel $ 5,589  $ (1,514) $ 1,083  $ —  $ —  $ (431)
The Hythe Vail $ 21,895  $ 10,653  $ 1,202  $ —  $ —  $ 11,855 
The Landing Lake Tahoe Resort & Spa $ 1,553  $ (560) $ 223  $ —  $ —  $ (337)
The Lodge at Sonoma Resort $ 6,105  $ 396  $ 657  $ —  $ —  $ 1,053 
Tranquility Bay Beachfront Resort $ 6,982  $ 2,039  $ 429  $ —  $ —  $ 2,468 
Westin Boston Seaport District $ 18,031  $ (1,865) $ 2,470  $ 1,981  $ (122) $ 2,464 
Westin Fort Lauderdale Beach Resort $ 22,987  $ 8,306  $ 1,054  $ —  $ —  $ 9,360 
Westin San Diego Bayview $ 8,700  $ 2,013  $ 855  $ —  $ —  $ 2,868 
Westin Washington D.C. City Center $ 6,707  $ (63) $ 1,020  $ —  $ —  $ 957 
Worthington Renaissance Fort Worth Hotel $ 12,092  $ 1,907  $ 1,126  $ 712  $ —  $ 3,745 
Total $ 243,553  $ 29,579  $ 27,472  $ 4,214  $ 1,550  $ 62,816 
Less: Non Comparable Hotel (2)
 $ (3,175) $ (583) $ (304) $ —  $ —  $ (887)
Comparable Total $ 240,378  $ 28,996  $ 27,168  $ 4,214  $ 1,550  $ 61,929 
(1) Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization of intangible assets and liabilities.
(2) Represents the operating results of the Kimpton Fort Lauderdale Beach Resort, which is non-comparable since the hotel opened during 2021.
17


Hotel Adjusted EBITDA Reconciliation - First Quarter 2022
Net Income / (Loss) Plus: Plus: Plus: Equals: Hotel
Total Revenues Depreciation Interest Expense
Adjustments (1)
 Adjusted EBITDA
Atlanta Marriott Alpharetta $ 2,468  $ 279  $ 370  $ —  $ —  $ 649 
Bourbon Orleans Hotel $ 3,049  $ 75  $ 820  $ —  $ 6  $ 901 
Cavallo Point, The Lodge at the Golden Gate $ 9,635  $ 1,032  $ 1,826  $ —  $ 94  $ 2,952 
Chicago Marriott Downtown Magnificent Mile $ 8,606  $ (6,202) $ 3,993  $ 6  $ (397) $ (2,600)
Courtyard Denver Downtown $ 1,733  $ 182  $ 377  $ —  $ —  $ 559 
Courtyard New York Manhattan/Fifth Avenue $ 2,349  $ (1,175) $ 330  $ —  $ 253  $ (592)
Courtyard New York Manhattan/Midtown East $ 3,840  $ (2,273) $ 484  $ 905  $ —  $ (884)
Embassy Suites by Hilton Bethesda $ 939  $ (3,099) $ 553  $ —  $ 1,489  $ (1,057)
Havana Cabana Key West $ 4,615  $ 2,182  $ 283  $ —  $ —  $ 2,465 
Henderson Beach Resort $ 6,906  $ (607) $ 953  $ —  $ —  $ 346 
Henderson Park Inn $ 1,377  $ (83) $ 215  $ —  $ —  $ 132 
Hilton Boston Downtown/Faneuil Hall $ 4,790  $ (1,037) $ 1,057  $ —  $ —  $ 20 
Hilton Burlington Lake Champlain $ 2,768  $ (98) $ 560  $ —  $ —  $ 462 
Hilton Garden Inn New York/Times Square Central $ 3,678  $ (611) $ 620  $ —  $ —  $ 9 
Hotel Clio $ 4,941  $ (447) $ 800  $ 644  $ 5  $ 1,002 
Hotel Emblem San Francisco $ 1,074  $ (473) $ 301  $ —  $ —  $ (172)
Hotel Palomar Phoenix $ 6,382  $ 1,807  $ 674  $ —  $ 185  $ 2,666 
Kimpton Shorebreak Resort $ 4,398  $ 995  $ 403  $ —  $ —  $ 1,398 
L'Auberge de Sedona $ 8,195  $ 2,378  $ 393  $ —  $ —  $ 2,771 
Margaritaville Beach House Key West $ 10,948  $ 5,337  $ 806  $ —  $ —  $ 6,143 
Orchards Inn Sedona $ 2,233  $ 590  $ 84  $ —  $ 42  $ 716 
Renaissance Charleston Historic District Hotel $ 4,924  $ 1,621  $ 456  $ —  $ —  $ 2,077 
Salt Lake City Marriott Downtown at City Creek $ 5,899  $ 1,042  $ 522  $ 478  $ 11  $ 2,053 
The Gwen Hotel $ 5,038  $ (1,684) $ 1,075  $ —  $ —  $ (609)
The Hythe Vail $ 17,733  $ 7,928  $ 1,197  $ —  $ —  $ 9,125 
The Landing Lake Tahoe Resort & Spa $ 2,177  $ 556  $ 358  $ —  $ —  $ 914 
The Lodge at Sonoma Resort $ 5,197  $ (97) $ 628  $ 260  $ —  $ 791 
Tranquility Bay Beachfront Resort $ 8,048  $ 2,873  $ 133  $ —  $ —  $ 3,006 
Westin Boston Seaport District $ 13,023  $ (3,862) $ 2,456  $ 2,027  $ (122) $ 499 
Westin Fort Lauderdale Beach Resort $ 22,452  $ 10,262  $ 993  $ —  $ —  $ 11,255 
Westin San Diego Bayview $ 5,006  $ (311) $ 806  $ 583  $ —  $ 1,078 
Westin Washington D.C. City Center $ 2,916  $ (1,382) $ 1,018  $ 592  $ —  $ 228 
Worthington Renaissance Fort Worth Hotel $ 9,496  $ 1,082  $ 1,111  $ 729  $ 2  $ 2,924 
Total $ 196,833  $ 16,780  $ 26,655  $ 6,224  $ 1,568  $ 51,227 
Add: Prior Ownership Results (2)
 $ 6,839  $ 1,862  $ 310  $ —  $ —  $ 2,172 
Comparable Total $ 203,672  $ 18,642  $ 26,965  $ 6,224  $ 1,568  $ 53,399 
(1)    Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization of intangible assets and liabilities.
(2)     Represents the pre-acquisition operating results of our 2021 and 2022 acquisitions (excluding the Kimpton Fort Lauderdale Beach Resort).

18

Hotel Adjusted EBITDA Reconciliation - First Quarter 2019
Net Income / (Loss) Plus: Plus: Plus: Equals: Hotel
Total Revenues Depreciation Interest Expense
Adjustments (1)
 Adjusted EBITDA
Atlanta Marriott Alpharetta $ 5,311  $ 1,579  $ 475  $ —  $ —  $ 2,054 
Cavallo Point, The Lodge at the Golden Gate $ 9,247  $ (221) $ 1,941  $ —  $ 31  $ 1,751 
Chicago Marriott Downtown Magnificent Mile $ 16,131  $ (4,067) $ 4,129  $ 71  $ (397) $ (264)
Courtyard Denver Downtown $ 2,245  $ 548  $ 296  $ —  $ —  $ 844 
Courtyard New York Manhattan/Fifth Avenue $ 2,884  $ (905) $ 441  $ —  $ 253  $ (211)
Courtyard New York Manhattan/Midtown East $ 5,256  $ (1,621) $ 692  $ 958  $ —  $ 29 
Embassy Suites by Hilton Bethesda $ 3,937  $ (971) $ 478  $ —  $ 1,525  $ 1,032 
Frenchman's Reef & Morning Star Marriott Beach Resort $ —  $ 8,799  $ —  $ —  $ —  $ 8,799 
Havana Cabana Key West $ 2,916  $ 1,202  $ 245  $ —  $ —  $ 1,447 
Hilton Boston Downtown/Faneuil Hall $ 6,672  $ (87) $ 1,244  $ —  $ —  $ 1,157 
Hilton Burlington Lake Champlain $ 2,916  $ 44  $ 499  $ —  $ —  $ 543 
Hilton Garden Inn New York/Times Square Central $ 4,624  $ (670) $ 844  $ —  $ —  $ 174 
Hotel Clio $ 2,676  $ (1,477) $ 541  $ 683  $ 6  $ (247)
Hotel Emblem San Francisco $ 1,349  $ (256) $ 275  $ —  $ —  $ 19 
Hotel Palomar Phoenix $ 7,613  $ 2,075  $ 666  $ 38  $ 296  $ 3,075 
Kimpton Shorebreak Resort $ 3,940  $ 586  $ 349  $ —  $ 41  $ 976 
L'Auberge de Sedona $ 5,954  $ 859  $ 508  $ —  $ —  $ 1,367 
Margaritaville Beach House Key West $ 5,794  $ 2,395  $ 338  $ —  $ —  $ 2,733 
Orchards Inn Sedona $ 1,878  $ 274  $ 238  $ —  $ 42  $ 554 
Renaissance Charleston Historic District Hotel $ 3,483  $ 890  $ 403  $ —  $ (32) $ 1,261 
Salt Lake City Marriott Downtown at City Creek $ 6,874  $ 1,058  $ 530  $ 604  $ —  $ 2,192 
The Gwen Hotel $ 5,056  $ (1,559) $ 1,058  $ —  $ —  $ (501)
The Hythe Vail $ 15,395  $ 6,545  $ 990  $ —  $ —  $ 7,535 
The Landing Lake Tahoe Resort & Spa $ 1,753  $ (460) $ 376  $ —  $ —  $ (84)
The Lexington Hotel $ 11,265  $ (4,421) $ 3,530  $ 4  $ 8  $ (879)
The Lodge at Sonoma Resort $ 4,529  $ (336) $ 535  $ 279  $ —  $ 478 
Westin Boston Seaport District $ 17,742  $ (2,045) $ 2,413  $ 2,156  $ (60) $ 2,464 
Westin Fort Lauderdale Beach Resort $ 17,500  $ 5,952  $ 1,545  $ —  $ —  $ 7,497 
Westin San Diego Bayview $ 8,645  $ 1,701  $ 1,126  $ 631  $ —  $ 3,458 
Westin Washington D.C. City Center $ 7,094  $ (235) $ 1,322  $ 661  $ —  $ 1,748 
Worthington Renaissance Fort Worth Hotel $ 11,696  $ 3,182  $ 969  $ 775  $ 2  $ 4,928 
Total $ 202,375  $ 18,358  $ 28,996  $ 6,860  $ 1,715  $ 55,929 
Add: Prior Ownership Results (2)
 $ 19,393  $ 1,719  $ 2,039  $ —  $ —  $ 3,758 
Less: Sold Hotels (3)
 $ (11,265) $ (4,378) $ (3,530) $ (4) $ (8) $ (7,920)
Comparable Total $ 210,503  $ 15,699  $ 27,505  $ 6,856  $ 1,707  $ 51,767 

(1) Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization of intangible assets and liabilities.
(2) Represents the pre-acquisition operating results of our 2021 and 2022 acquisitions (excluding the Kimpton Fort Lauderdale Beach Resort).
(3) Represents the operating results of Frenchman's Reef and The Lexington Hotel.


January 2023 January 2019 B/(W) 2019 January 2023 January 2019 B/(W) 2019 January 2023 January 2019 B/(W) 2019
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February 2023 February 2019 B/(W) 2019 February 2023 February 2019 B/(W) 2019 February 2023 February 2019 B/(W) 2019
Number of Rooms ADR Occupancy RevPAR
March 2023 March 2019 B/(W) 2019 March 2023 March 2019 B/(W) 2019 March 2023 March 2019 B/(W) 2019