

Maryland		04-3262075
(State or Other Jurisdiction of Incorporation or Organization)		(IRS Employer Identification No.)

Two Newton Place, 255 Washington Street, Suite 300, Newton, Massachusetts, 02458-1634

(Address of Principal Executive Offices) (Zip Code)

~~Two Newton Place, 255 Washington Street, Suite 300, Newton, Massachusetts 02458~~

~~(Address of Principal Executive Offices) (Zip Code)~~

~~617-964-8389~~617-964-8389

(Registrant’s Telephone Number, Including Area Code)

Hospitality Properties Trust

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:



Title of Each Class	Trading Symbol	Name of each Exchange on which Registered
Common Shares of Beneficial Interest	SVC	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.



Large accelerated filer	☒		Accelerated filer ☐
		☐
Non-accelerated filer	☐		Smaller reporting company ☐
		☐
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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Number of registrant’s common shares of beneficial interest, $.01 par value per share, outstanding as of November ~~5, 2018: 164,442,379~~7, 2019: 164,564,523

~~HOSPITALITY~~SERVICE PROPERTIES TRUST

FORM 10-Q

September 30, ~~2018~~

2019

INDEX



		Page
PART I	Financial Information (unaudited)

	Item 1. Financial Statements (unaudited)
	Condensed Consolidated Balance Sheets — September 30, ~~2018~~2019 and December 31, ~~2017~~2018	3

	Condensed Consolidated Statements of Comprehensive Income — Three and Nine Months Ended September 30, ~~2018~~2019 and ~~2017~~2018	4

	Condensed Consolidated Statements of ~~Cash Flows~~Shareholders' Equity — Three and Nine Months Ended September 30, ~~2018~~2019 and ~~2017~~2018	5

	~~Notes to~~ Condensed Consolidated ~~Financial~~ Statements of Cash Flows — Nine Months Ended September 30, 2019 and 2018	67

	~~Item 2.~~
	~~Management’s Discussion and Analysis of~~Notes to Condensed Consolidated Financial ~~Condition and Results of Operations~~Statements	218

	Item 3.2.
	~~Quantitative~~Management’s Discussion and ~~Qualitative Disclosures About Market Risk~~Analysis of Financial Condition and Results of Operations	3725

	Item 4.3.
	~~Controls~~Quantitative and ~~Procedures~~Qualitative Disclosures About Market Risk	4048

	~~Warning Concerning Forward Looking Statements~~Item 4.
	Controls and Procedures	4050

	Warning Concerning Forward-Looking Statements	50

	Statement Concerning Limited Liability	4454

PART II	Other Information

	Item 1A.
	Risk Factors	4555

	Item 2.
	Unregistered Sales of Equity Securities and Use of Proceeds	4558

	Item 6.
	Exhibits	4558

	Signatures	4761

References in this Quarterly Report on Form 10-Q to ~~“HPT”, “we”, “us”~~the Company, SVC, we, us or ~~“our”~~our include Service Properties Trust (formerly known as Hospitality Properties ~~Trust~~Trust) and ~~its~~our consolidated subsidiaries unless otherwise expressly stated or the context indicates otherwise.

Part I Financial Information

Item 1. Financial Statements

~~HOSPITALITY~~SERVICE PROPERTIES TRUST

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(dollars in thousands, except share data)


	September 30,			December 31,			September 30,			December 31,
	2018			2017			2019			2018
ASSETS
Real estate properties:
Land	$	1,673,113		$	1,668,797		$	2,062,776		$	1,626,239
Buildings, improvements and equipment	7,964,429			7,758,862			9,237,760			7,896,734
Total real estate properties, gross	9,637,542			9,427,659			11,300,536			9,522,973
Accumulated depreciation	(2,998,741		)	(2,784,478		)	(3,086,684		)	(2,973,384		)
Total real estate properties, net	6,638,801			6,643,181			8,213,852			6,549,589
Acquired real estate leases and other intangibles							392,673			105,749
Assets held for sale							604,989			144,008
Cash and cash equivalents	19,849			24,139			16,990			25,966
Restricted cash	65,644			73,357			53,519			50,037
Due from related persons	88,164			78,513			72,587			91,212
Other assets, net	439,095			331,195			160,893			210,518
Total assets	$	7,251,553		$	7,150,385		$	9,515,503		$	7,177,079

LIABILITIES AND SHAREHOLDERS’ EQUITY
Unsecured revolving credit facility	$	143,000		$	398,000		$	790,000		$	177,000
Unsecured term loan, net	397,143			399,086			397,740			397,292
Senior unsecured notes, net	3,596,275			3,203,962			5,284,933			3,598,295
Security deposits	133,770			126,078			122,763			132,816
Accounts payable and other liabilities	178,321			184,788			292,161			211,332
Due to related persons	10,473			83,049			18,920			62,913
Total liabilities	4,458,982			4,394,963			6,906,517			4,579,648

Commitments and contingencies

Shareholders’ equity:
Common shares of beneficial interest, $.01 par value; 200,000,000 shares authorized; 164,442,379 and 164,349,141 shares issued and outstanding, respectively	1,644			1,643
Common shares of beneficial interest, $.01 par value; 200,000,000 shares authorized; 164,565,303 and 164,441,709 shares issued and outstanding, respectively							1,646			1,644
Additional paid in capital	4,544,449			4,542,307			4,547,055			4,545,481
Cumulative net income	3,684,167			3,310,017
Cumulative other comprehensive income (loss)	(108		)	79,358
Cumulative preferred distributions	(343,412		)	(343,412		)
Cumulative other comprehensive loss							(175		)	(266		)
Cumulative net income available for common shareholders							3,506,538			3,231,895
Cumulative common distributions	(5,094,169		)	(4,834,491		)	(5,446,078		)	(5,181,323		)
Total shareholders’ equity	2,792,571			2,755,422			2,608,986			2,597,431
Total liabilities and shareholders’ equity	$	7,251,553		$	7,150,385		$	9,515,503		$	7,177,079

The accompanying notes are an integral part of these condensed consolidated financial statements.

~~HOSPITALITY~~SERVICE PROPERTIES TRUST

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(dollars in thousands, except share data)



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Revenues:
Hotel operating revenues	$	525,290		$	520,618		$	1,521,368		$	1,494,283
Rental income	73,619			81,322			210,509			245,543
FF&E reserve income	863			1,213			3,365			3,911
Total revenues	599,772			603,153			1,735,242			1,743,737

Expenses:
Hotel operating expenses	377,895			365,526			1,076,011			1,052,121
Other operating expenses	1,707			1,468			4,419			3,936
Depreciation and amortization	103,160			101,007			301,721			300,308
General and administrative	12,464			13,425			36,906			38,280
Total expenses	495,226			481,426			1,419,057			1,394,645

Gain on sale of real estate	—			—			159,535			—
Dividend income	—			626			1,752			1,878
Unrealized gains (losses) on equity securities, net	(3,950		)	43,453			(43,761		)	89,348
Interest income	688			478			1,774			1,093
Interest expense (including amortization of debt issuance costs and debt discounts and premiums of $2,689, $2,570, $7,829 and $7,607, respectively)	(52,375		)	(49,308		)	(151,742		)	(145,589		)
Loss on early extinguishment of debt	(8,451		)	—			(8,451		)	(160		)
Income before income taxes and equity in earnings of an investee	40,458			116,976			275,292			295,662
Income tax expense	(467		)	(707		)	(1,266		)	(1,949		)
Equity in earnings of an investee	83			830			617			881
Net income	40,074			117,099			274,643			294,594

Other comprehensive income (loss):
Equity interest in investee’s unrealized gains (losses)	(46		)	173			91			90
Other comprehensive income (loss)	(46		)	173			91			90
Comprehensive income	$	40,028		$	117,272		$	274,734		$	294,684

Weighted average common shares outstanding (basic)	164,321			164,232			164,294			164,212
Weighted average common shares outstanding (diluted)	164,348			164,274			164,332			164,242

Net income per common share (basic and diluted)	$	0.24		$	0.71		$	1.67		$	1.79

The accompanying notes are an integral part of these condensed consolidated financial statements.

SERVICE PROPERTIES TRUST

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(unaudited)

(in thousands, except share data)

Three Months Ended September 30, Nine Months Ended September 30,
2018 2017 2018 2017
Revenues:
Hotel operating revenues $ 521,250
$ 495,550
$ 1,496,125
$ 1,392,995
Rental income 80,690
80,896
243,701
240,274
FF&E reserve income 1,213
1,142
3,911
3,524
Total revenues 603,153
577,588
1,743,737
1,636,793

Expenses:
Hotel operating expenses 366,994
343,274
1,056,057
965,546
Depreciation and amortization 101,007
98,205
300,308
286,811
General and administrative 13,425
13,404
38,280
76,097
Total expenses 481,426
454,883
1,394,645
1,328,454

Gain on sale of real estate —
9,348
—
9,348
Dividend income 626
626
1,878
1,878
Unrealized gains on equity securities 43,453
—
89,348
—
Interest income 478
211
1,093
590
Interest expense (including amortization of debt issuance costs and debt discounts and premiums of $2,570, $2,194, $7,607 and $6,541, respectively) (49,308 ) (46,574 ) (145,589 ) (135,329 )
Loss on early extinguishment of debt —
—
(160 ) —
Income before income taxes and equity in earnings of an investee 116,976
86,316
295,662
184,826
Income tax expense (707 ) (619 ) (1,949 ) (1,761 )
Equity in earnings of an investee 830
31
881
533
Net income 117,099
85,728
294,594
183,598
Other comprehensive income:
Unrealized gain on investment securities —
7,273
—
19,923
Equity interest in investee’s unrealized gains 173
116
90
295
Other comprehensive income 173
7,389
90
20,218
Comprehensive income $ 117,272
$ 93,117
$ 294,684
$ 203,816

Net income $ 117,099
$ 85,728
$ 294,594
$ 183,598
Preferred distributions —
—
—
(1,435 )
Excess of liquidation preference over carrying value of preferred shares redeemed —
—
—
(9,893 )
Net income available for common shareholders $ 117,099
$ 85,728
$ 294,594
$ 172,270

Weighted average common shares outstanding (basic) 164,232
164,149
164,212
164,131
Weighted average common shares outstanding (diluted) 164,274
164,188
164,242
164,168

Net income available for common shareholders per common share (basic and diluted) $ 0.71
$ 0.52
$ 1.79
$ 1.05



	Common Shares							Additional Paid in Capital			Cumulative Net Income Available for Common Shareholders		Cumulative Other Comprehensive Income (Loss)
	Number of Shares		Common Shares		Cumulative Common Distributions
	Number of Shares		Common Shares		Cumulative Common Distributions											Total

Balance at December 31, 2018	164,441,709		$	1,644	$	(5,181,323	)	$	4,545,481		$	3,231,895	$	(266	)	$	2,597,431
Net income	—		—		—			—			225,787		—			225,787
Equity interest in investee’s unrealized gains	—		—		—			—			—		66			66
Common share grants	—		—		—			436			—		—			436
Distributions	—		—		(87,154		)	—			—		—			(87,154		)
Balance at March 31, 2019	164,441,709		$	1,644	$	(5,268,477	)	$	4,545,917		$	3,457,682	$	(200	)	$	2,736,566
Net income	—		—		—			—			8,782		—			8,782
Equity interest in investee’s unrealized gains	—		—		—			—			—		71			71
Common share grants	15,000		1		—			868			—		—			869
Common share repurchases and forfeitures	(2,172	)	—		—			(48		)	—		—			(48		)
Distributions	—		—		(88,798		)	—			—		—			(88,798		)
Balance at June 30, 2019	164,454,537		$	1,645	$	(5,357,275	)	$	4,546,737		$	3,466,464	$	(129	)	$	2,657,442
Net income	—		—		—			—			40,074		—			40,074
Equity interest in investee’s unrealized losses	—		—		—			—			—		(46		)	(46		)
Common share grants	140,100		1		—			1,067			—		—			1,068
Common share repurchases	(29,334	)	—		—			(749		)	—		—			(749		)
Distributions	—		—		(88,803		)	—			—		—			(88,803		)
Balance at September 30, 2019	164,565,303		$	1,646	$	(5,446,078	)	$	4,547,055		$	3,506,538	$	(175	)	$	2,608,986



	Common Shares								Additional Paid in Capital			Cumulative Net Income Available for Common Shareholders		Cumulative Other Comprehensive Income (Loss)
	Number of Shares		Common Shares			Cumulative Common Distributions
	Number of Shares		Common Shares			Cumulative Common Distributions											Total

Balance at December 31, 2017	164,349,141		$	1,643		$	(4,834,491	)	$	4,542,307		$	2,966,605	$	79,358		$	2,755,422
Cumulative effect of accounting change	—		—			—			—			79,556		(79,556		)	—
Net income	—		—			—			—			80,206		—			80,206
Equity interest in investee’s unrealized losses	—		—			—			—			—		(93		)	(93		)
Common share repurchases	(3,394	)	—			—			(101		)	—		—			(101		)
Distributions	—		—			(85,460		)	—			—		—			(85,460		)
Balance at March 31, 2018	164,345,747		$	1,643		$	(4,919,951	)	$	4,542,206		$	3,126,367	$	(291	)	$	2,749,974
Net income	—		—			—			—			97,289		—			97,289
Equity interest in investee’s unrealized gains	—		—			—			—			—		10			10
Common share grants	18,000		1			—			500			—		—			501
Distributions	—		—			(87,105		)	—			—		—			(87,105		)
Balance at June 30, 2018	164,363,747		$	1,644		$	(5,007,056	)	$	4,542,706		$	3,223,656	$	(281	)	$	2,760,669
Net income	—		—			—			—			117,099		—			117,099
Equity interest in investee’s unrealized gains	—		—			—			—			—		173			173
Common share grants	97,000		1			—			2,242			—		—			2,243
Common share repurchases	(18,368	)	(1		)	—			(499		)	—		—			(500		)
Distributions	—		—			(87,113		)	—			—		—			(87,113		)
Balance at September 30, 2018	164,442,379		$	1,644		$	(5,094,169	)	$	4,544,449		$	3,340,755	$	(108	)	$	2,792,571

The accompanying notes are an integral part of these condensed consolidated financial statements.

~~HOSPITALITY~~SERVICE PROPERTIES TRUST

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(in thousands)


	For the Nine Months Ended September 30,						For the Nine Months Ended September 30,
	2018			2017			2019			2018
Cash flows from operating activities:
Net income	$	294,594		$	183,598		$	274,643		$	294,594
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	300,308			286,811			301,721			300,308
Amortization of debt issuance costs and debt discounts and premiums as interest	7,607			6,541			7,829			7,607
Straight line rental income	(9,359		)	(9,208		)	7,368			(9,359		)
Security deposits received or replenished	7,687			37,239
Security deposits replenished (utilized)							(10,052		)	7,687
Loss on early extinguishment of debt	160			—			8,451			160
Unrealized gains on equity securities	(89,348		)	—
Unrealized (gains) and losses on equity securities, net							43,761			(89,348		)
Equity in earnings of an investee	(881		)	(533		)	(617		)	(881		)
Gain on sale of real estate	—			(9,348		)	(159,535		)	—
Other non-cash (income) expense, net	(2,226		)	(2,523		)	109			(2,226		)
Changes in assets and liabilities:
Due from related persons	(585		)	(992		)	3,609			(585		)
Other assets	(8,627		)	(14,710		)	(6,352		)	(8,627		)
Accounts payable and other liabilities	(21,259		)	(21,979		)	12,743			(21,259		)
Due to related persons	(74,667		)	(12,619		)	(51,148		)	(74,667		)
Net cash provided by operating activities	403,404			442,277			432,530			403,404

Cash flows from investing activities:
Real estate acquisitions and deposits	(95,208		)	(594,927		)	(2,659,186		)	(95,208		)
Real estate improvements	(111,248		)	(89,955		)	(71,024		)	(111,248		)
Hotel managers’ purchases with restricted cash	(89,401		)	(64,574		)	(143,692		)	(89,401		)
Hotel manager's deposit of insurance proceeds into restricted cash	18,000			—
Hotel manager’s deposit of insurance proceeds into restricted cash							14,325			18,000
Net proceeds from sale of real estate	—			23,438			308,200			—
Net proceeds from sale of equity securities							93,892			—
Net cash used in investing activities	(277,857		)	(726,018		)	(2,457,485		)	(277,857		)

Cash flows from financing activities:
Proceeds from issuance of senior unsecured notes, after discounts and premiums	389,976			598,246			1,693,879			389,976
Redemption of preferred shares	—			(290,000		)
Repurchase of convertible senior notes	—			(8,478		)
Borrowings under unsecured revolving credit facility	395,000			631,000			997,000			395,000
Repayments of unsecured revolving credit facility	(650,000		)	(364,000		)	(384,000		)	(650,000		)
Deferred financing costs	(12,242		)	(5,018		)	(21,869		)	(12,242		)
Repurchase of common shares	(606		)	(533		)	(794		)	(606		)
Distributions to preferred shareholders	—			(6,601		)
Distributions to common shareholders	(259,678		)	(254,623		)	(264,755		)	(259,678		)
Net cash provided by (used in) financing activities	(137,550		)	299,993			2,019,461			(137,550		)
Increase (decrease) in cash and cash equivalents and restricted cash	(12,003		)	16,252
Decrease in cash and cash equivalents and restricted cash							(5,494		)	(12,003		)
Cash and cash equivalents and restricted cash at beginning of period	97,496			71,352			76,003			97,496
Cash and cash equivalents and restricted cash at end of period	$	85,493		$	87,604		$	70,509		$	85,493

Supplemental disclosure of cash and cash equivalents and restricted cash:
The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the condensed consolidated balance sheets to the amount shown in the condensed consolidated statements of cash flows:
Cash and cash equivalents	$	19,849		$	14,489		$	16,990		$	19,849
Restricted cash	65,644			73,115			53,519			65,644
Total cash and cash equivalents and restricted cash	$	85,493		$	87,604		$	70,509		$	85,493

Supplemental cash flow information:
Cash paid for interest	$	158,056		$	149,261		$	171,418		$	158,056
Cash paid for income taxes	2,804			2,588			2,614			2,804

We calculate FFO ~~available for common shareholders~~and Normalized FFO, as shown below. FFO ~~available for common shareholders~~ is calculated on the basis defined by The National Association of Real Estate Investment Trusts, ~~or Nareit,~~ which is net income, ~~available for common shareholders~~ calculated in accordance with GAAP, excluding any gain or loss on sale of properties and loss on impairment of real estate assets, if any, plus real estate depreciation and amortization, less any unrealized gains and losses on equity securities, as well as certain other adjustments currently not applicable to us. ~~Our calculation of~~In calculating Normalized FFO, ~~available~~we adjust for ~~common shareholders differs from Nareit's definition of FFO available for common shareholders because we~~the item shown below and include business management incentive fees, if any, only in the fourth quarter versus the quarter when they are recognized as expense in accordance with GAAP due to their quarterly volatility not necessarily being indicative of our core operating performance and the uncertainty as to whether any such business management incentive fees will be payable when all contingencies for determining such fees are known at the end of the calendar ~~year, and we exclude the loss on early extinguishment of debt, excess of liquidation preference over carrying value of preferred shares redeemed and unrealized gains on equity securities. We consider~~year. FFO ~~available for common shareholders~~ and Normalized FFO available for common shareholders to be appropriate supplemental measures of operating performance for a REIT, along with net income and net income available for common shareholders. We believe that FFO available for common shareholders and Normalized FFO available for common shareholders provide useful information to investors because by excluding the effects of certain historical amounts, such as depreciation expense, FFO available for common shareholders and Normalized FFO available for common shareholders may facilitate a comparison of our operating performance between periods and with other REITs. FFO available for common shareholders and Normalized FFO available for common shareholders are among the factors considered by our Board of Trustees when determining the amount of distributions to our shareholders. Other factors include, but are not limited to, requirements to maintain our qualification for taxation as a REIT, limitations in our credit agreement and public debt covenants, the availability to us of debt and equity capital, our distribution rate as a percentage of the trading price of our common shares, or dividend yield, and to the dividend yield of other REITs, our expectation of our future capital requirements and operating performance and our expected needs for and availability of cash to pay our obligations. FFO available for common shareholders and Normalized FFO available for common shareholders do not represent cash generated by operating activities in accordance with GAAP and should not be considered alternatives to net income or net income available for common shareholders as indicators of our operating performance or as measures of our liquidity. These measures should be considered in conjunction with net income and net income available for common shareholders as presented in our condensed consolidated statements of comprehensive income. Other real estate companies and REITs may calculate FFO ~~available for common shareholders~~ and Normalized FFO ~~available for common shareholders~~ differently than we do.



Acquisition Date	Location	Purchase Price		Land		Land Improvements		Building and Improvements		Furniture, Fixtures and Equipment
6/15/2018	Minneapolis, MN ⁽¹⁾	75,572		$	2,196	$	—	$	68,384	$	4,992
6/15/2018	Baton Rouge, LA ⁽²⁾	16,022		2,242		173		12,842		765
		$	91,594	$	4,438	$	173	$	81,226	$	5,757



Acquisition Date	Location	Purchase Price		Land		Land Improvements		Building and Improvements		Furniture, Fixtures and Equipment		Held for Sale		Intangible Assets / Liabilities, net
2/22/2019	Washington, D.C. ⁽¹⁾	$	143,742	$	44,972	$	151	$	93,412	$	5,207	$	—	$	—
5/7/2019	Milwaukee, WI ⁽²⁾	30,235		3,442		1,053		25,132		608		—		—
8/1/2019	Southington, CT ⁽³⁾	66		66		—		—		—		—		—
9/20/2019	Various ⁽⁴⁾	2,482,382		388,057		—		1,201,922		—		604,989		287,414
		$	2,656,425	$	436,537	$	1,204	$	1,320,466	$	5,815	$	604,989	$	287,414



2019	$	184,600
2020	440,093
2021	436,348
2022	428,645
2023	412,430
Thereafter	3,260,594
Total	$	5,162,710



2019	$	1,841
2020	6,910
2021	6,229
2022	5,691
2023	5,564
Thereafter	145,374
Total lease payments	171,609
Less: imputed interest	(95,385		)
Present value of lease liabilities ⁽¹⁾	$	76,224


				Fair Value at September 30, 2018 Using									Fair Value at Reporting Date Using
				Quoted Prices in									Quoted Prices in
				Active Markets for		Significant Other		Significant					Active Markets for		Significant Other		Significant
		Carrying Value at		Identical Assets		Observable Inputs		Unobservable Inputs			Carrying Value at		Identical Assets		Observable Inputs		Unobservable Inputs
Description		September 30, 2018		(Level 1)		(Level 2)		(Level 3)			September 30, 2019		(Level 1)		(Level 2)		(Level 3)
Recurring Fair Value Measurement Assets:	Recurring Fair Value Measurement Assets:									Recurring Fair Value Measurement Assets:
Investment in TA ⁽¹⁾		$	19,494	$	19,494	$	—	$	—		$	8,430	$	8,430	$	—	$	—
Investment in RMR Inc.⁽²⁾		$	232,351	$	232,351	$	—	$	—
Non-recurring Fair Value Measurement Assets:										Non-recurring Fair Value Measurement Assets:
Assets of properties held for sale⁽²⁾											$	607,636	$	—	$	518,300	$	89,336



	For the Three Months Ended September 30,		For the Nine Months Ended September 30,
	2019	2018	2019	2018
	(in thousands)
Weighted average common shares for basic earnings per share	164,321	164,232	164,294	164,212
Effect of dilutive securities: Unvested share awards	27	42	38	30
Weighted average common shares for diluted earnings per share	164,348	164,274	164,332	164,242



	Three Months Ended September 30, 2018
	Unrealized Gain		Equity in
	(Loss) on Investment		Unrealized Gain
	Securities, net		(Loss) of Investees			Total
Balance at June 30, 2018	$	—	$	(281	)	$	(281	)
Current period other comprehensive income	—		173			173
Balance at September 30, 2018	$	—	$	(108	)	$	(108	)



	Nine Months Ended September 30, 2018
	Unrealized Gain			Equity in
	(Loss) on Investment			Unrealized Gain
	Securities, net			(Loss) of Investees			Total
Balance at December 31, 2017	$	78,715		$	643		$	79,358
Amounts reclassified from cumulative other comprehensive income to retained earnings	(78,715		)	(841		)	(79,556		)
Current period other comprehensive income	—			90			90
Balance at September 30, 2018	$	—		$	(108	)	$	(108	)


(1)	On ~~June 15, 2018,~~February 22, 2019, we acquired the ~~360~~335 room ~~Radisson Blu~~^® ~~hotel~~Hotel Palomar located in ~~Minneapolis, MN~~Washington, D.C. for a purchase price of ~~$75,572,~~$143,742, including capitalized acquisition costs of ~~$572.~~$2,292. We added this ~~hotel to our management agreement with Radisson Hospitality, Inc., or Radisson.~~


(2)	On May 7, 2019, we acquired the 198 room Crowne Plaza Milwaukee West hotel in Milwaukee, WI for a purchase price of $30,235, including capitalized acquisition costs of $235. We added this Crowne Plaza^®branded hotel to our management agreement with IHG. See Note 8 for further information regarding our IHG agreement.


(3)	On August 1, 2019, we acquired a land parcel adjacent to our travel center located in Southington, CT for a purchase price of $66, including capitalized acquisition costs of $6. This land parcel has been added to the TA lease for that travel center.


(4)	On September 20, 2019, we completed the SMTA Transaction for total consideration of $2,482,382. See below for further information regarding the SMTA Transaction. As of September 30, 2019, 148assets included in the SMTA Transaction with a carrying value of $604,989 were classified as held for sale.


(1)	The weighted average discount rate used to calculate the lease liability and the weighted average remaining term for our ground leases (assuming all extension options) and our hotel operating leases are approximately 5.45% and 31 years (range of 12 to 68 years) and 5.47% and 30 years (range of 1 month to 54 years), respectively.


	For the Three Months Ended September 30, 2018										For the Three Months Ended September 30, 2019
	Hotels		Travel Centers		Corporate			Consolidated			Hotels		Net Lease		Corporate			Consolidated
Revenues:
Hotel operating revenues	$	521,250	$	—	$	—		$	521,250		$	525,290	$	—	$	—		$	525,290
Rental income	5,893		74,797		—			80,690			5,565		68,054		—			73,619
FF&E reserve income	1,213		—		—			1,213			863		—		—			863
Total revenues	528,356		74,797		—			603,153			531,718		68,054		—			599,772

Expenses:
Hotel operating expenses	366,994		—		—			366,994			377,895		—		—			377,895
Other operating expenses											369		1,338		—			1,707
Depreciation and amortization	64,415		36,592		—			101,007			66,929		36,231		—			103,160
General and administrative	—		—		13,425			13,425			—		—		12,464			12,464
Total expenses	431,409		36,592		13,425			481,426			445,193		37,569		12,464			495,226

Dividend income	—		—		626			626			—		—		—			—
Unrealized gains on equity securities	—		—		43,453			43,453
Unrealized losses on equity securities											—		—		(3,950		)	(3,950		)
Interest income	—		—		478			478			177		—		511			688
Interest expense	—		—		(49,308		)	(49,308		)	—		—		(52,375		)	(52,375		)
Loss on early extinguishment of debt											—		—		(8,451		)	(8,451		)
Income (loss) before income taxes and equity in earnings of an investee	96,947		38,205		(18,176		)	116,976			86,702		30,485		(76,729		)	40,458
Income tax expense	—		—		(707		)	(707		)	—		—		(467		)	(467		)
Equity in earnings of an investee	—		—		830			830			—		—		83			83
Net income (loss)	$	96,947	$	38,205	$	(18,053	)	$	117,099		$	86,702	$	30,485	$	(77,113	)	$	40,074

	For the Nine Months Ended September 30, 2018										For the Nine Months Ended September 30, 2019
	Hotels		Travel Centers		Corporate			Consolidated			Hotels		Net Lease		Corporate			Consolidated
Revenues:
Hotel operating revenues	$	1,496,125	$	—	$	—		$	1,496,125		$	1,521,368	$	—	$	—		$	1,521,368
Rental income	20,243		223,458		—			243,701			16,700		193,809		—			210,509
FF&E reserve income	3,911		—		—			3,911			3,365		—		—			3,365
Total revenues	1,520,279		223,458		—			1,743,737			1,541,433		193,809		—			1,735,242

Expenses:
Hotel operating expenses	1,056,057		—		—			1,056,057			1,076,011		—		—			1,076,011
Other operating expenses											1,101		3,318		—			4,419
Depreciation and amortization	189,814		110,494		—			300,308			200,533		101,188		—			301,721
General and administrative	—		—		38,280			38,280			—		—		36,906			36,906
Total expenses	1,245,871		110,494		38,280			1,394,645			1,277,645		104,506		36,906			1,419,057

Gain on sale of real estate											—		159,535		—			159,535
Dividend income	—		—		1,878			1,878			—		—		1,752			1,752
Unrealized gains on equity securities	—		—		89,348			89,348
Unrealized losses on equity securities											—		—		(43,761		)	(43,761		)
Interest income	—		—		1,093			1,093			603		—		1,171			1,774
Interest expense	—		—		(145,589		)	(145,589		)	—		—		(151,742		)	(151,742		)
Loss on early extinguishment of debt	—		—		(160		)	(160		)	—		—		(8,451		)	(8,451		)
Income (loss) before income taxes and equity in earnings of an investee	274,408		112,964		(91,710		)	295,662			264,391		248,838		(237,937		)	275,292
Income tax expense	—		—		(1,949		)	(1,949		)	—		—		(1,266		)	(1,266		)
Equity in earnings of an investee	—		—		881			881			—		—		617			617
Net income (loss)	$	274,408	$	112,964	$	(92,778	)	$	294,594		$	264,391	$	248,838	$	(238,586	)	$	274,643

	As of September 30, 2018										As of September 30, 2019
	Hotels		Travel Centers		Corporate			Consolidated			Hotels		Net Lease		Corporate			Consolidated
Total assets	$	4,538,553	$	2,419,794	$	293,206		$	7,251,553		$	4,823,114	$	4,642,072	$	50,317		$	9,515,503


	September 30, 2018				December 31, 2017				September 30, 2019				December 31, 2018
	Carrying		Fair		Carrying		Fair		Carrying		Fair		Carrying		Fair
	Value ⁽¹⁾		Value		Value ⁽¹⁾		Value		Value ⁽¹⁾		Value		Value ⁽¹⁾		Value
Senior Unsecured Notes, due 2021 at 4.25%	$	396,578	$	402,810	$	395,497	$	413,676	$	398,019	$	405,594	$	396,938	$	404,582
Senior Unsecured Notes, due 2022 at 5.00%	495,307		512,548		494,398		533,908		496,518		524,058		495,609		510,658
Senior Unsecured Notes, due 2023 at 4.50%	499,227		502,033		499,104		523,275		499,391		515,003		499,268		503,295
Senior Unsecured Notes, due 2024 at 4.65%	347,788		348,565		347,484		368,804		348,193		360,395		347,890		349,741
Senior Unsecured Notes, due 2024 at 4.35%									817,713		836,026		—		—
Senior Unsecured Notes, due 2025 at 4.50%	345,571		341,129		345,055		363,589		346,259		355,420		345,743		341,114
Senior Unsecured Notes, due 2026 at 5.25%	341,673		353,250		340,826		377,431		342,801		363,979		341,955		354,060
Senior Unsecured Notes, due 2026 at 4.75%									445,756		453,076		—		—
Senior Unsecured Notes, due 2027 at 4.95%	393,704		392,696		393,137		422,914		394,460		406,718		393,893		391,660
Senior Unsecured Notes, due 2028 at 3.95%	389,322		362,642		388,461		390,930		390,472		379,724		389,610		361,232
Senior Unsecured Notes, due 2029 at 4.95%									417,112		406,604		—		—
Senior Unsecured Notes, due 2030 at 4.375%	387,105		367,644		—		—		388,239		383,118		387,389		367,110
Total financial liabilities	$	3,596,275	$	3,583,317	$	3,203,962	$	3,394,527	$	5,284,933	$	5,389,715	$	3,598,295	$	3,583,452



		Number of					Rent / Return Coverage ⁽³⁾
		Rooms or					Three Months		Twelve Months
		Suites (Hotels) /			Annual		Ended		Ended
Operating Agreement	Number of	Land Acreage			Minimum		September 30,		September 30,
Reference Name	Properties	(Travel Centers)	Investment ⁽¹⁾		Return/Rent ⁽²⁾		2018	2017	2018	2017
Marriott (No. 1) ⁽⁴⁾	53	7,609	$	699,026	$	69,409	1.38x	1.50x	1.20x	1.26x
Marriott (No. 234) ⁽⁵⁾	68	9,120	1,009,719		107,110		1.14x	1.22x	1.10x	1.12x
Marriott (No. 5) ⁽⁶⁾	1	356	90,078		10,321		1.04x	1.05x	1.07x	0.84x
Subtotal / Average Marriott	122	17,085	1,798,823		186,840		1.22x	1.31x	1.13x	1.16x
InterContinental⁽⁷⁾	100	16,354	2,055,918		190,521		1.20x	1.25x	1.12x	1.14x
Sonesta ⁽⁸⁾	50	8,698	1,641,511		123,180		0.69x	0.83x	0.67x	0.76x
Wyndham ⁽⁹⁾	22	3,579	395,250		29,126		0.99x	1.15x	0.75x	0.83x
Hyatt ⁽¹⁰⁾	22	2,724	301,942		22,037		0.95x	1.17x	1.08x	1.14x
Radisson ⁽¹¹⁾	9	1,939	270,101		18,920		1.24x	1.43x	1.02x	1.10x
Subtotal / Average Hotels	325	50,379	6,463,545		570,624		1.08x	1.18x	1.00x	1.05x
TA (No. 1) ⁽¹²⁾	40	825	684,905		53,431		1.71x	1.82x	1.62x	1.58x
TA (No. 2)⁽¹³⁾	40	957	692,384		54,645		1.74x	1.70x	1.62x	1.50x
TA (No. 3)⁽¹⁴⁾	39	909	643,630		54,653		1.72x	1.77x	1.57x	1.50x
TA (No. 4) ⁽¹⁵⁾	40	1,091	627,433		55,186		1.54x	1.61x	1.48x	1.41x
TA (No. 5) ⁽¹⁶⁾	40	1,148	894,709		70,294		1.70x	1.75x	1.67x	1.56x
Subtotal / Average TA	199	4,930	3,543,061		288,209		1.68x	1.73x	1.60x	1.51x
Total / Average	524	50,379 / 4,930	$	10,006,606	$	858,833	1.28x	1.36x	1.20x	1.20x



Operating Agreement Reference Name	Number of Properties	Number of Rooms or Suites (Hotels)	Investment ⁽¹⁾		Annual Minimum Return/Rent ⁽²⁾		Rent / Return Coverage ⁽³⁾
							Three Months Ended		Twelve Months Ended
							September 30,		September 30,
							2019	2018	2019	2018
Marriott (No. 1) ⁽⁴⁾	53	7,609	$	722,087	$	71,714	1.30x	1.38x	1.16x	1.20x
Marriott (No. 234) ⁽⁵⁾	68	9,120	1,030,994		109,024		1.06x	1.14x	1.04x	1.10x
Marriott (No. 5) ⁽⁶⁾	1	356	90,078		10,518		1.17x	1.04x	1.01x	1.07x
Subtotal / Average Marriott	122	17,085	1,843,159		191,256		1.16x	1.22x	1.08x	1.13x
IHG ⁽⁷⁾	102	16,893	2,267,462		207,411		0.88x	1.18x	0.90x	1.12x
Sonesta ⁽⁸⁾	51	8,862	1,763,319		131,229		0.48x	0.68x	0.58x	0.68x
Wyndham ⁽⁹⁾	22	3,583	398,964		29,466		0.93x	0.99x	0.58x	0.75x
Hyatt ⁽¹⁰⁾	22	2,724	301,942		22,037		0.77x	0.95x	0.90x	1.08x
Radisson ⁽¹¹⁾	9	1,939	289,139		20,442		1.38x	1.34x	0.95x	1.10x
Total / Average Hotels	328	51,086	$	6,863,985	$	601,841	0.90x	1.07x	0.87x	1.01x


(1)	Carrying value includes unamortized discounts and premiums and issuance costs.


	For the Three Months Ended September 30,											For the Three Months Ended September 30,
							Increase			% Increase								Increase			% Increase
	2018			2017			(Decrease)			(Decrease)		2019			2018			(Decrease)			(Decrease)
Revenues:
Hotel operating revenues	$	521,250		$	495,550		$	25,700		5.2	%	$	525,290		$	520,618		$	4,672		0.9	%
Rental income - hotels	5,893			7,617			(1,724		)	(22.6	)%	5,565			6,404			(839		)	(13.1	)%
Rental income - travel centers	74,797			73,279			1,518			2.1	%
Rental income - net lease portfolio												68,054			74,918			(6,864		)	(9.2	)%
Total rental income	80,690			80,896			(206		)	(0.3	)%	73,619			81,322			(7,703		)	(9.5	)%
FF&E reserve income	1,213			1,142			71			6.2	%	863			1,213			(350		)	(28.9	)%

Expenses:
Hotel operating expenses	366,994			343,274			23,720			6.9	%	377,895			365,526			12,369			3.4	%
Other operating expenses												1,707			1,468			239			16.3	%
Depreciation and amortization - hotels	64,415			61,996			2,419			3.9	%	66,929			64,415			2,514			3.9	%
Depreciation and amortization - travel centers	36,592			36,209			383			1.1	%
Depreciation and amortization - net lease portfolio												36,231			36,592			(361		)	(1.0	)%
Total depreciation and amortization	101,007			98,205			2,802			2.9	%	103,160			101,007			2,153			2.1	%
General and administrative	13,425			13,404			21			0.2	%	12,464			13,425			(961		)	(7.2	)%

Gain on sale of real estate	—			9,348			(9,348		)	(100.0	)%
Dividend income	626			626			—			—		—			626			(626		)	(100.0	)%
Unrealized gains on equity securities	43,453			—			43,453			n/m
Unrealized gains (losses) on equity securities, net												(3,950		)	43,453			(47,403		)	n/m
Interest income	478			211			267			126.5	%	688			478			210			43.9	%
Interest expense	(49,308		)	(46,574		)	(2,734		)	5.9	%	(52,375		)	(49,308		)	(3,067		)	6.2	%
Loss on early extinguishment of debt												(8,451		)	—			(8,451		)	n/m
Income before income taxes and equity earnings of an investee	116,976			86,316			30,660			35.5	%	40,458			116,976			(76,518		)	(65.4	)%
Income tax expense	(707		)	(619		)	(88		)	14.2	%	(467		)	(707		)	240			(33.9	)%
Equity in earnings of an investee	830			31			799			2,577.4	%	83			830			(747		)	(90.0	)%
Net income available for common shareholders	$	117,099		$	85,728		$	31,371		36.6	%
Net income												$	40,074		$	117,099		$	(77,025	)	(65.8	)%

Weighted average shares outstanding (basic)	164,232			164,149			83			n/m		164,321			164,232			89			0.1	%
Weighted average shares outstanding (diluted)	164,274			164,188			86			n/m		164,348			164,274			74			n/m

Net income available for common shareholders per common share (basic and diluted)	$	0.71		$	0.52		$	0.19		36.4	%
Net income per common share (basic and diluted)												$	0.24		$	0.71		$	(0.47	)	(66.2	)%


(1)	Represents the historical cost of our hotel properties plus capital improvements funded by us less impairment ~~writedowns,~~write-downs, if any, and excludes capital improvements made from FF&E reserves funded from hotel operations which do not result in increases in hotel minimum returns or rents.


(4)	We lease 53 Courtyard by Marriott^® branded hotels in 24 states to one of our TRSs. The hotels are managed by a subsidiary of Marriott under a combination management agreement which expires in 2024; Marriott has two renewal options for 12 years each for all, but not less than all, of the hotels.


(8)	We lease our 5051 Sonesta branded hotels (six Royal Sonesta^® Hotels, ~~five~~six Sonesta Hotels & Resorts^® and 39 Sonesta ES Suites^® hotels) in 26 states to one of our TRSs. The hotels are managed by Sonesta under a combination management agreement which expires in 2037; Sonesta has two renewal options for 15 years each for all, but not less than all, of the hotels.


(9)	We lease our 22 Wyndham branded hotels (six Wyndham Hotels and Resorts^® and 16 Hawthorn Suites^® hotels) in 14 states to one of our TRSs. The hotels are managed by ~~a subsidiary~~subsidiaries of Wyndham under a combination management agreement which expires in 2038; Wyndham has two renewal options for 15 years each for all, but not less than all, of the hotels.


(10)	We lease our 22 Hyatt Place^® branded hotels in 14 states to one of our TRSs. The hotels are managed by a subsidiary of Hyatt under a combination management agreement that expires in 2030; Hyatt has two renewal options for 15 years each for all, but not less than all, of the hotels.


(11)	We lease our nine Radisson branded hotels (four Radisson^® Hotels & Resorts, four Country Inns & Suites^® by Radisson and one Radisson Blu^® hotel) in six states to one of our TRSs and these hotels are managed by a subsidiary of Radisson under a combination management agreement which expires in 2035 and Radisson has two 15 year renewal options for all, but not less than all, of the hotels.


	No. of	No. of Rooms /	Three Months Ended September 30,								Nine Months Ended September 30,								No. of	No. of Rooms /	Three Months Ended September 30,								Nine Months Ended September 30,
	Hotels	Suites	2018			2017			Change		2018			2017			Change		Hotels	Suites	2019			2018			Change		2019			2018			Change
ADR
Marriott (No. 1)	53	7,609	$	132.67		$	131.54		0.9	%	$	132.19		$	131.82		0.3	%	53	7,609	$	132.70		$	132.67		—	%	$	134.27		$	132.19		1.6	%
Marriott (No. 234)	68	9,120	134.75			133.48			1.0	%	134.05			132.57			1.1	%	68	9,120	132.40			134.75			(1.7	%)	134.44			134.05			0.3	%
Marriott (No. 5)	1	356	301.59			272.72			10.6	%	290.71			268.89			8.1	%	1	356	308.12			301.59			2.2	%	304.95			290.71			4.9	%
Subtotal / Average Marriott	122	17,085	137.88			136.08			1.3	%	137.32			135.65			1.2	%	122	17,085	136.82			137.88			(0.8	%)	138.67			137.32			1.0	%
InterContinental ⁽¹⁾	100	16,354	123.03			120.62			2.0	%	123.88			119.83			3.4	%
IHG ⁽¹⁾																			102	16,893	120.44			123.97			(2.8	%)	122.04			125.37			(2.7	%)
Sonesta ^{(1) (2)}	50	8,698	146.87			144.66			1.5	%	148.34			146.54			1.2	%	51	8,862	140.45			146.63			(4.2	%)	147.47			149.31			(1.2	%)
Wyndham	22	3,579	103.40			104.90			(1.4	%)	100.96			100.81			0.1	%	22	3,583	100.63			103.40			(2.7	%)	97.67			100.96			(3.3	%)
Hyatt	22	2,724	109.34			108.48			0.8	%	112.64			110.09			2.3	%	22	2,724	105.76			109.34			(3.3	%)	109.67			112.64			(2.6	%)
Radisson ⁽¹⁾ ⁽³⁾	9	1,939	141.16			137.75			2.5	%	134.29			131.45			2.2	%
Radisson ⁽¹⁾																			9	1,939	141.65			141.16			0.3	%	136.66			134.29			1.8	%
All Hotels Total / Average	325	50,379	$	130.42		$	128.55		1.5	%	$	130.49		$	128.02		1.9	%	328	51,086	$	127.82		$	130.68		(2.2	%)	$	129.91		$	131.15		(0.9	%)

OCCUPANCY
Marriott (No. 1)	53	7,609	72.5		%	74.2		%	-1.7 pts		70.1		%	70.5		%	-0.4 pts		53	7,609	73.1		%	72.5		%	0.6 pts		68.8		%	70.1		%	-1.3 pts
Marriott (No. 234)	68	9,120	76.7		%	77.4		%	-0.7 pts		76.2		%	76.8		%	-0.6 pts		68	9,120	77.4		%	76.7		%	0.7 pts		74.9		%	76.2		%	-1.3 pts
Marriott (No. 5)	1	356	87.0		%	90.4		%	-3.4 pts		91.7		%	88.7		%	3.0 pts		1	356	88.6		%	87.0		%	1.6 pts		87.7		%	91.7		%	-4.0 pts
Subtotal / Average Marriott	122	17,085	75.1		%	76.3		%	-1.2 pts		73.8		%	74.2		%	-0.4 pts		122	17,085	75.7		%	75.1		%	0.6 pts		72.4		%	73.8		%	-1.4 pts
InterContinental ⁽¹⁾	100	16,354	81.9		%	84.8		%	-2.9 pts		80.0		%	82.3		%	-2.3 pts
IHG ⁽¹⁾																			102	16,893	79.8		%	82.0		%	-2.2 pts		77.7		%	80.0		%	-2.3 pts
Sonesta ^{(1) (2)}	50	8,698	72.4		%	75.4		%	-3.0 pts		69.2		%	72.5		%	-3.3 pts		51	8,862	73.8		%	72.3		%	1.5 pts		70.0		%	69.2		%	0.8 pts
Wyndham	22	3,579	72.3		%	75.4		%	-3.1 pts		69.6		%	71.6		%	-2.0 pts		22	3,583	74.5		%	72.3		%	2.2 pts		69.4		%	69.6		%	-0.2 pts
Hyatt	22	2,724	80.1		%	84.4		%	-4.3 pts		80.5		%	83.5		%	-3.0 pts		22	2,724	79.4		%	80.1		%	-0.7 pts		78.9		%	80.5		%	-1.6 pts
Radisson ^{(1) (3)}	9	1,939	75.4		%	80.0		%	-4.6 pts		74.6		%	77.0		%	-2.4 pts
Radisson ⁽¹⁾																			9	1,939	79.5		%	75.4		%	4.1 pts		72.7		%	74.6		%	-1.9 pts
All Hotels Total / Average	325	50,379	76.9		%	79.4		%	-2.5 pts		75.1		%	76.9		%	-1.8 pts		328	51,086	77.0		%	77.0		%	0.0 pts		73.9		%	75.1		%	-1.2 pts

RevPAR
Marriott (No. 1)	53	7,609	$	96.19		$	97.60		(1.4	%)	$	92.67		$	92.93		(0.3	%)	53	7,609	$	97.00		$	96.19		0.8	%	$	92.38		$	92.67		(0.3	%)
Marriott (No. 234)	68	9,120	103.35			103.31			—	%	102.15			101.81			0.3	%	68	9,120	102.48			103.35			(0.8	%)	100.70			102.15			(1.4	%)
Marriott (No. 5)	1	356	262.38			246.54			6.4	%	266.58			238.51			11.8	%	1	356	272.99			262.38			4.0	%	267.44			266.58			0.3	%
Subtotal / Average Marriott	122	17,085	103.55			103.83			(0.3	%)	101.34			100.65			0.7	%	122	17,085	103.57			103.55			—	%	100.40			101.34			(0.9	%)
InterContinental ⁽¹⁾	100	16,354	100.76			102.29			(1.5	%)	99.10			98.62			0.5	%
IHG ⁽¹⁾																			102	16,893	96.11			101.66			(5.5	%)	94.83			100.30			(5.5	%)
Sonesta ^{(1) (2)}	50	8,698	106.33			109.07			(2.5	%)	102.65			106.24			(3.4	%)	51	8,862	103.65			106.01			(2.2	%)	103.23			103.32			(0.1	%)
Wyndham	22	3,579	74.76			79.09			(5.5	%)	70.27			72.18			(2.6	%)	22	3,583	74.97			74.76			0.3	%	67.78			70.27			(3.5	%)
Hyatt	22	2,724	87.58			91.56			(4.3	%)	90.68			91.93			(1.4	%)	22	2,724	83.97			87.58			(4.1	%)	86.53			90.68			(4.6	%)
Radisson ^{(1) (3)}	9	1,939	106.43			110.20			(3.4	%)	100.18			101.22			(1.0	%)
Radisson ⁽¹⁾																			9	1,939	112.61			106.43			5.8	%	99.35			100.18			(0.8	%)
All Hotels Total / Average	325	50,379	$	100.29		$	102.07		(1.7	%)	$	98.00		$	98.45		(0.5	%)	328	51,086	$	98.42		$	100.62		(2.2	%)	$	96.00		$	98.49		(2.5	%)


(1)	Operating data includes data for certain hotels for periods prior to when we acquired them.


(2)	Operating data includes data for one hotel prior to when it was managed by Sonesta.



	Brand	No. of Buildings	Investment ^{(1) (2)}		Percent of Total Investment		Annualized Minimum Rent ⁽²⁾		Percent of Total Annualized Minimum Rent ^{(2) (3)}		Coverage ⁽⁴⁾

1.	TravelCenters of America	134	$	2,281,589	39.3	%	$	167,990	40.1	%	1.95x
2.	Petro Stopping Centers	45	1,021,227		17.7	%	78,099		18.7	%	1.62x
3.	AMC Theatres	14	123,554		2.1	%	10,725		2.6	%	1.36x
4.	The Great Escape	14	98,242		1.7	%	7,140		1.7	%	4.12x
5.	Creme de la Creme	9	68,712		1.2	%	5,811		1.4	%	1.84x
6.	Goodrich Quality Theaters	4	59,743		1.0	%	5,396		1.3	%	1.48x
7.	Life Time Fitness	3	92,617		1.6	%	5,246		1.3	%	3.56x
8.	Casual Male	1	69,973		1.2	%	5,221		1.2	%	1.24x
9.	Buehler's Fresh Foods	5	76,536		1.3	%	5,143		1.2	%	2.22x
10.	CarMax	4	66,119		1.1	%	4,878		1.2	%	2.51x
11.	Other ⁽⁵⁾	713	1,826,885		31.8	%	122,986		29.3	%	3.15x
	Total	946	$	5,785,197	100.0	%	$	418,635	100.0	%	2.27x


(1)	Represents historical cost of our properties plus capital improvements funded by us less impairment write-downs, if any.


(3)	~~Operating data excludes~~As of September 30, 2019, we have 148 net lease properties with a carrying value of $604,989 and annual minimum rent of $43,081 classified as held for sale.


(4)	See page 39 for our definition of coverage. Coverage amounts include data for certain ~~hotels~~properties for periods prior to when we assumed ownership of them.


(5)	Other includes 153 distinct brands with an average investment of $11,940 and average annual minimum rent of $804.



	Tenant	Brand Affiliation	No. of Buildings	Investment ^{(1) (2)}		Percent of Total Investment		Annualized Minimum Rent ^{(2) (3)}		Percent of Total Annualized Minimum Rent		Coverage ⁽⁴⁾

1.	TravelCenters of America Inc.	TravelCenters of America / Petro Stopping Centers	179	$	3,302,816	57.0	%	$	246,088	58.7	%	1.84x	^{(5) (6)}
2.	Universal Pool Co., Inc.	The Great Escape	14	98,242		1.7	%	7,140		1.7	%	4.12x
3.	Creme De La Creme, Inc.	Creme De La Creme	9	68,712		1.2	%	5,811		1.4	%	1.84x	⁽⁵⁾
4.	Goodrich Quality Theaters, Inc.	Goodrich Quality Theaters	4	59,743		1.0	%	5,396		1.3	%	1.48x
5.	Healthy Way of Life II, LLC	Life Time Fitness	3	92,617		1.6	%	5,246		1.3	%	3.56x	⁽⁵⁾
6.	Destination XL Group, Inc.	Casual Male	1	69,973		1.2	%	5,221		1.2	%	1.24x
7.	Styx Acquisition, LLC	Buehler's Fresh Foods	5	76,536		1.3	%	5,143		1.2	%	2.22x
8.	Professional Resource Development, Inc.	Heartland Dental	59	61,120		1.1	%	4,427		1.1	%	3.50x
9.	Station Casinos, Inc. ⁽⁷⁾	Station Casino	1	56,083		1.0	%	3,561		0.9	%	3.00x
10.	Express Oil Change, L.L.C.	Express Oil Change	23	49,724		0.9	%	3,379		0.8	%	3.62x
	Subtotal, top 10		298	3,935,566		68.0	%	291,412		69.6	%	1.88x
11.	Other ⁽⁸⁾	Various	648	1,849,631		32.0	%	127,223		30.4	%	2.95x
	Total		946	$	5,785,197	100.0	%	$	418,635	100.0	%	2.27x


(1)	Represents historical cost of our net lease properties plus capital improvements funded by us less impairment write-downs, if any.


(3)	As of September 30, 2019, we have 148 net lease properties with a carrying value of $604,989 and annual minimum rent of $43,081 classified as held for sale.


(7)	On October 29, 2019, we sold ~~during the periods presented.~~a net lease office property in Las Vegas, NV with 138,558 square feet with annual minimum rent of $3,561 as of September 30, 2019 for $57,000, excluding closing costs.