Sunstone Hotel Investors (SHO) 8-K Sunstone Hotel Investors Reports Results for Third Quarter 2012

Exhibit 99.2

Supplemental Financial Information For the quarter ended September 30, 2012 November 1, 2012

Supplemental Financial Information – Unaudited November 1, 2012

Table of Contents

CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR	3
About Sunstone	4
Forward-Looking Statement	5
Non-GAAP Financial Measures	6
CORPORATE FINANCIAL INFORMATION	8
Condensed Consolidated Balance Sheets Q3 2012 – Q3 2011	9
Consolidated Statements of Operations and Comprehensive Income (Loss) Q3 & YTD 2012/2011	11
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA Q3 & YTD 2012/2011	12
Reconciliation of Net Income (Loss) to FFO and Adjusted FFO Q3 & YTD 2012/2011	13
Pro Forma Consolidated Statements of Operations Q3 2012 – Q2 2011	14
EARNINGS GUIDANCE FOR Q4 AND FULL YEAR 2012	15
Earnings Guidance for Q4 and FY 2012	16
Reconciliation of Net Income to Adjusted EBITDA and Adjusted FFO Q4 & FY 2012	18
CAPITALIZATION	19
Comparative Capitalization Q3 2012 – Q3 2011	20
Consolidated Debt Summary Schedule	21
Consolidated Amortization and Debt Maturity Schedule	22
PROPERTY-LEVEL DATA	23

Supplemental Financial Information – Unaudited November 1, 2012

PROPERTY-LEVEL OPERATING STATISTICS	25
Q1 2012/2011	26
Q2 2012/2011	27
Q3 2012/2011	28
YTD Q3 2012/2011	29
Q4 2011	30
FY 2011/2010	31
OPERATING STATISTICS BY BRAND & GEOGRAPHY	32
Comparable Portfolio Operating Statistics by Brand Q3 & YTD 2012/2011	33
Pro Forma Portfolio Property-Level YTD Q3 2012 EBITDA Contribution by Brand	34
Comparable Portfolio Operating Statistics by Region Q3 & YTD 2012/2011	35
PROPERTY-LEVEL EBITDA & EBITDA MARGINS	36
Property-Level EBITDA Q3 & YTD 2012/2011	37
Property-Level EBITDA Margins Q3 & YTD 2012/2011	38
APPENDIX	39
Reconciliations of Pro Forma Net Income (Loss) to EBITDA, Adjusted EBITDA, FFO and Adjusted FFO	40
Property-Level EBITDA Reconciliations	58
2013 Marriott Accounting Conversion	74

Supplemental Financial Information – Unaudited November 1, 2012

CORPORATE PROFILE, FINANCIAL DISCLOSURES,
AND SAFE HARBOR

CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR Page 3  

Supplemental Financial Information – Unaudited November 1, 2012

About Sunstone

Sunstone Hotel Investors, Inc. (NYSE:SHO) is a lodging real estate investment trust (REIT) that, as of November 1, 2012, has interests in 30 hotels held for investment comprised of 12,854 rooms. Sunstone’s hotels are primarily in the upper upscale segment and are generally operated under nationally recognized brands, such as Marriott, Hilton, Hyatt, Fairmont and Sheraton.

Sunstone’s mission is to create meaningful value for our stockholders by becoming the premier hotel owner.  Our values include transparency, trust, ethical conduct, communication and discipline.  We seek to employ a balanced, cycle-appropriate corporate strategy that encompasses the following:

·Proactive portfolio management;

·Intensive asset management;

·Disciplined external growth; and

·Measured balance sheet improvement.

Corporate Headquarters
120 Vantis, Suite 350
Aliso Viejo, CA 92656
(949) 330-4000

Company Contacts
Ken Cruse
President & Chief Executive Officer
(949) 382-3012

John Arabia
Executive Vice President of Corporate Strategy & Chief Financial Officer
(949) 382-3008

Bryan Giglia
Senior Vice President – Corporate Finance
(949) 382-3036

CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR Page 4  

Supplemental Financial Information – Unaudited November 1, 2012

Forward-Looking Statement

This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,” “will” and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: volatility in the debt or equity markets affecting our ability to acquire or sell hotel assets; international, national and local economic and business conditions, including the likelihood of a prolonged U.S. recession; the ability to maintain sufficient liquidity and our access to capital markets; potential terrorist attacks, which would affect occupancy rates at our hotels and the demand for hotel products and services; operating risks associated with the hotel business; risks associated with the level of our indebtedness and our ability to meet covenants in our debt and equity agreements; relationships with property managers and franchisors; our ability to maintain our properties in a first-class manner, including meeting capital expenditure requirements; our 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; our ability to identify, successfully compete for and complete acquisitions; the performance of hotels after they are acquired; necessary capital expenditures and our ability to fund them and complete them with minimum disruption; our ability to continue to satisfy complex rules in order for us to qualify as a REIT for federal income tax purposes; and other risks and uncertainties associated with our business described in the Company’s filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All forward-looking information in this presentation is as of November 1, 2012, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.

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

CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR Page 5  

Supplemental Financial Information – Unaudited November 1, 2012

Non-GAAP Financial Measures

We present the following non-GAAP financial measures that we believe are useful to investors as key measures of our operating performance: Earnings Before Interest Expense, Taxes, Depreciation and Amortization, or EBITDA; Adjusted EBITDA (as defined below); Funds From Operations, or FFO; Adjusted FFO (as defined below); and comparable hotel EBITDA and comparable hotel EBITDA margin.

EBITDA represents net income (loss) excluding: non-controlling interests; interest expense; provision for income taxes, including income taxes applicable to sale of assets; and depreciation and amortization. In addition, we have presented Adjusted EBITDA, which includes EBITDA but excludes: amortization of deferred stock compensation; the impact of any gain or loss from asset sales; impairment charges; prior year property tax and other adjustments; and any other adjustments we have identified in this presentation. We believe EBITDA and Adjusted EBITDA are useful to investors in evaluating our operating performance because these measures 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) from our operating results. We also use EBITDA and Adjusted EBITDA as measures in determining the value of hotel acquisitions and dispositions. Reconciliations of net income (loss) and pro forma net income (loss) to EBITDA and Adjusted EBITDA are set forth on page 12 and in the Appendix of this supplemental package.  We believe comparable hotel EBITDA and comparable hotel EBITDA margin are also useful to investors in evaluating our property-level operating performance.

We compute FFO in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT, an industry trade group. The Board of Governors of NAREIT in its March 1995 White Paper (as clarified in November 1999 and April 2002) defines FFO to mean net income (loss) (computed in accordance with GAAP), excluding non-controlling interests, gains and losses from sales of property, plus real estate-related depreciation and amortization (excluding amortization of deferred financing costs) and real estate-related impairment losses, and after adjustment for unconsolidated partnerships and joint ventures. We also present Adjusted FFO, which includes FFO but excludes penalties, written-off deferred financing costs, non-real estate-related impairment losses and any other adjustments we have identified in this presentation. We believe that the presentation of FFO and Adjusted FFO provide useful information to investors regarding our operating performance because they are measures of our operations without regard to specified non-cash items such as real estate depreciation and amortization, gain or loss on sale of assets and certain other items which we believe are not indicative of the performance of our underlying hotel properties.  We believe that these items are more representative of our asset base and our acquisition and disposition activities than our ongoing operations. We also use FFO as one measure in determining our results after taking into account the impact of our capital structure.  Reconciliations of net income (loss) and pro forma net income (loss) to FFO and Adjusted FFO are set forth on page 13 and in the Appendix of this supplemental package.

CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR Page 6  

Supplemental Financial Information – Unaudited November 1, 2012

Our 30 comparable hotels include all hotels in which the Company has interests as of September 30, 2012, and also includes prior ownership results as applicable in 2011 and 2012 for the Doubletree Guest Suites Times Square acquired by the Company in January 2011, the JW Marriott New Orleans acquired by the Company in February 2011, the Hilton San Diego Bayfront acquired by the Company in April 2011, the Hyatt Chicago Magnificent Mile acquired by the Company in June 2012 and the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired by the Company in July 2012.

We caution investors that amounts presented in accordance with our definitions of EBITDA, Adjusted EBITDA, FFO, Adjusted FFO, comparable hotel EBITDA and comparable hotel EBITDA margin may not be comparable to similar measures disclosed by other companies, because not all companies calculate these non-GAAP measures in the same manner. EBITDA, Adjusted EBITDA, FFO, Adjusted FFO, comparable hotel EBITDA and comparable hotel EBITDA margin should not be considered as an alternative measure of our net income (loss), operating performance, cash flow or liquidity. EBITDA, Adjusted EBITDA, FFO, Adjusted FFO, comparable hotel EBITDA and comparable hotel EBITDA margin may include funds that may not be available for our discretionary use due to functional requirements to conserve funds for capital expenditures and property acquisitions and other commitments and uncertainties. Although we believe that EBITDA, Adjusted EBITDA, FFO, Adjusted FFO, comparable hotel EBITDA and comparable hotel EBITDA margin can enhance an investor’s understanding of our results of operations, these non-GAAP financial measures, when viewed individually, are not necessarily better indicators of any trend as compared to GAAP measures such as net income (loss) or cash flow from operations. In addition, you should be aware that adverse economic and market conditions may harm our cash flow.

CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR Page 7  

Supplemental Financial Information – Unaudited November 1, 2012

CORPORATE FINANCIAL INFORMATION

CORPORATE FINANCIAL INFORMATION Page 8  

Supplemental Financial Information – Unaudited November 1, 2012

Condensed Consolidated Balance Sheets

Q3 2012 – Q3 2011

(In thousands)	September 30, 2012 (1)		June 30, 2012 (2)		March 31, 2012 (3)		December 31, 2011 (4)		September 30, 2011 (5)
Assets
Investment in hotel properties:
Land	$	268,093	$	262,009	$	265,108	$	265,108	$	265,108
Buildings & improvements	2,687,110		2,710,028		2,646,951		2,639,867		2,621,142
Furniture, fixtures, & equipment	351,014		352,567		348,308		342,880		337,673
Other	201,826		200,824		193,507		187,591		192,249
	3,508,043		3,525,428		3,453,874		3,435,446		3,416,172
Less accumulated depreciation & amortization	(707,361)		(715,019)		(692,868)		(657,620)		(622,272)
	2,800,682		2,810,409		2,761,006		2,777,826		2,793,900
Other real estate investments:
Land	1,600		2,768		2,768		2,768		2,768
Buildings & improvements	8,193		9,503		9,503		9,481		9,397
Furniture, fixtures, & equipment	6,586		6,078		5,928		5,904		5,494
Other	337		729		305		250		600
Less accumulated depreciation	(6,861)		(7,021)		(6,781)		(6,544)		(6,314)
	9,855		12,057		11,723		11,859		11,945
Other assets, net	52,394		45,793		45,563		47,702		124,259
Current assets:
Cash and cash equivalents	164,469		204,549		126,199		150,533		159,974
Restricted cash	76,790		73,306		71,991		67,898		63,767
Other current assets, net	40,752		90,290		48,249		45,422		55,711
Total assets	$	3,144,942	$	3,236,404	$	3,064,731	$	3,101,240	$	3,209,556

*Footnotes on following page

CORPORATE FINANCIAL INFORMATION Page 9  

Supplemental Financial Information – Unaudited November 1, 2012

Condensed Consolidated Balance Sheets

Q3 2012 – Q3 2011 (cont.)

(In thousands)	September 30, 2012 (1)		June 30, 2012 (2)		March 31, 2012 (3)		December 31, 2011 (4)		September 30, 2011 (5)
Liabilities
Current liabilities:
Current portion of notes payable	$	19,849	$	21,448	$	54,141	$	53,935	$	324,279
Exchangeable senior notes, less discount (6)	57,730		57,464		57,205		-		-
Other current liabilities	101,909		145,717		85,830		92,846		104,116
Total current liabilities	179,488		224,629		197,176		146,781		428,395
Notes payable, less current portion	1,318,102		1,396,980		1,449,246		1,455,177		1,280,927
Exchangeable senior notes, less discount (6)	-		-		-		61,365		61,095
Capital lease obligations, less current portion	15,630		15,636		-		-		-
Other liabilities	14,789		13,810		13,284		12,623		12,295
Total liabilities	1,528,009		1,651,055		1,659,706		1,675,946		1,782,712
Series C cumulative convertible redeemable preferred stock	100,000		100,000		100,000		100,000		100,000
Equity
Stockholders’ equity:
8% Series A cumulative redeemable preferred stock	176,250		176,250		176,250		176,250		176,250
8% Series D cumulative redeemable preferred stock	115,000		115,000		115,000		115,000		115,000
Common stock, $0.01 par value, 500,000,000 shares authorized	1,352		1,352		1,176		1,173		1,173
Additional paid in capital	1,492,528		1,491,639		1,313,581		1,312,566		1,311,918
Retained earnings	147,329		108,600		97,052		110,580		103,091
Cumulative dividends	(467,707)		(460,270)		(452,833)		(445,396)		(437,959)
Accumulated other comprehensive loss	(4,740)		(4,799)		(4,916)		(4,916)		(3,137)
Total stockholders’ equity	1,460,012		1,427,772		1,245,310		1,265,257		1,266,336
Non-controlling interest in consolidated joint ventures	56,921		57,577		59,715		60,037		60,508
Total equity	1,516,933		1,485,349		1,305,025		1,325,294		1,326,844
Total liabilities and equity	$	3,144,942	$	3,236,404	$	3,064,731	$	3,101,240	$	3,209,556

(1) As presented on Form 10-Q to be filed in November 2012.

(2) As presented on Form 10-Q filed August 7, 2012.

(3) As presented on Form 10-Q filed May 3, 2012.

(4) As presented on Form 10-K filed February 28, 2012.

(5) As presented on Form 10-Q filed November 9, 2011.

(6) Face value of $58.0 million.

CORPORATE FINANCIAL INFORMATION Page 10  

Supplemental Financial Information – Unaudited November 1, 2012

Consolidated Statements of Operations and Comprehensive Income (Loss)

Q3 & YTD 2012/2011

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands, except per share data)	2012		2011		2012		2011
Revenues
Room	$	156,725	$	139,824	$	443,022	$	380,826
Food and beverage	46,191		40,920		148,574		124,838
Other operating	18,163		16,743		51,243		45,454
Total revenues	221,079		197,487		642,839		551,118
Operating expenses
Room	39,911		35,325		112,566		96,160
Food and beverage	34,616		32,366		104,426		93,165
Other operating	6,986		6,506		20,074		18,112
Advertising and promotion	10,740		9,669		31,760		27,250
Repairs and maintenance	8,299		7,775		24,561		22,094
Utilities	7,686		7,867		21,039		20,914
Franchise costs	8,306		7,282		22,443		19,046
Property tax, ground lease and insurance	18,102		16,484		52,237		43,641
Property general and administrative	24,493		22,881		73,202		64,595
Corporate overhead	6,148		6,852		18,975		20,771
Depreciation and amortization	36,529		32,490		102,899		88,241
Impairment loss	-		10,862		-		10,862
Total operating expenses	201,816		196,359		584,182		524,851
Operating income	19,263		1,128		58,657		26,267
Equity in earnings of unconsolidated joint ventures	-		-		-		21
Interest and other income	18		1,543		155		2,970
Interest expense	(19,709)		(20,021)		(59,309)		(55,449)
Loss on extinguishment of debt	-		-		(191)		-
Gain on remeasurement of equity interests	-		-		-		69,230
Income (loss) from continuing operations	(428)		(17,350)		(688)		43,039
Income from discontinued operations	39,984		797		39,131		30,672
Net income (loss)	39,556		(16,553)		38,443		73,711
(Income) loss from consolidated joint venture attributable to non-controlling interest	(827)		31		(1,694)		(213)
Distributions to non-controlling interest	(8)		(8)		(24)		(22)
Preferred stock dividends	(7,437)		(7,437)		(22,311)		(19,884)
Undistributed income allocated to unvested restricted stock compensation	(352)		-		(162)		(638)
Income available (loss attributable) to common stockholders	$	30,932	$	(23,967)	$	14,252	$	52,954
Comprehensive income (loss)	$	39,615	$	(16,553)	$	38,619	$	73,711
Basic per share amounts:
Income (loss) from continuing operations available (attributable) to common stockholders	$	(0.07)	$	(0.21)	$	(0.20)	$	0.19
Income from discontinued operations	0.30		0.01		0.31		0.26
Basic income available (loss attributable) to common stockholders per common share	$	0.23	$	(0.20)	$	0.11	$	0.45
Diluted per share amounts:
Income (loss) from continuing operations available (attributable) to common stockholders	$	(0.07)	$	(0.21)	$	(0.20)	$	0.19
Income from discontinued operations	0.30		0.01		0.31		0.26
Diluted income available (loss attributable) to common stockholders per common share	$	0.23	$	(0.20)	$	0.11	$	0.45
Weighted average common shares outstanding:
Basic	135,236		117,254		124,271		117,186
Diluted	135,236		117,254		124,271		117,186

CORPORATE FINANCIAL INFORMATION Page 11  

Supplemental Financial Information – Unaudited November 1, 2012

Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA

Q3 & YTD 2012/2011

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In thousands)	2012		2011		2012		2011
Net income (loss)	$	39,556	$	(16,553)	$	38,443	$	73,711
Operations held for investment:
Depreciation and amortization	36,529		32,490		102,899		88,241
Amortization of lease intangibles	1,120		1,028		3,176		2,950
Interest expense	18,417		17,841		55,095		50,351
Amortization of deferred financing fees	929		823		2,825		2,215
Write-off of deferred financing fees	-		-		3		-
Non-cash interest related to discount on Senior Notes	267		270		791		792
Non-cash interest related to loss on derivatives	96		1,087		595		2,091
Non-controlling interests:
(Income) loss from consolidated joint venture attributable to non-controlling interest	(827)		31		(1,694)		(213)
Depreciation and amortization	(1,422)		(1,414)		(4,261)		(2,598)
Interest expense	(566)		(549)		(1,703)		(1,005)
Amortization of deferred financing fees	(56)		(56)		(168)		(103)
Non-cash interest related to loss on derivative	-		(4)		(1)		(32)
Unconsolidated joint ventures:
Depreciation and amortization	-		-		-		3
Discontinued operations:
Depreciation and amortization	977		1,686		4,651		6,767
Amortization of lease intangibles	-		7		14		21
Interest expense	1,237		1,912		4,663		5,702
Amortization of deferred financing fees	13		20		46		59
Write-off of deferred financing fees	185		-		185		-
EBITDA	96,455		38,619		205,559		228,952
Operations held for investment:
Amortization of deferred stock compensation	812		697		2,654		2,170
Non-cash straightline lease expense	694		696		2,083		1,702
Capital lease obligation interest - cash ground rent	(351)		-		(468)		-
(Gain) loss on sale of assets	33		(17)		22		(73)
Loss on extinguishment of debt	-		-		191		-
Gain on remeasurement of equity interests	-		-		-		(69,230)
Lawsuit settlement costs, net	-		1,620		110		1,620
Closing costs - completed acquisitions	590		-		1,965		3,372
Prior year property tax and CAM adjustments, net	(440)		-		621		-
Hotel laundry closing costs	424		-		424		-
Impairment loss	-		10,862		-		10,862
Non-controlling interests:
Non-cash straightline lease expense	(113)		(114)		(339)		(243)
Prior year property tax adjustments, net	63		-		(202)		-
Unconsolidated joint ventures:
Amortization of deferred stock compensation	-		-		-		2
Discontinued operations:
(Gain) loss on sale of assets	(38,115)		52		(38,292)		(13,966)
Impairment loss	-		-		-		1,495
Gain on extinguishment of debt	-		-		-		(18,145)
	(36,403)		13,796		(31,231)		(80,434)
Adjusted EBITDA	$	60,052	$	52,415	$	174,328	$	148,518

CORPORATE FINANCIAL INFORMATION Page 12  

Supplemental Financial Information – Unaudited November 1, 2012

Reconciliation of Net Income (Loss) to FFO and Adjusted FFO

Q3 & YTD 2012/2011

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In thousands)	2012		2011		2012		2011
Net income (loss)	$	39,556	$	(16,553)	$	38,443	$	73,711
Preferred stock dividends	(7,437)		(7,437)		(22,311)		(19,884)
Operations held for investment:
Real estate depreciation and amortization	36,230		32,196		101,994		87,370
Amortization of lease intangibles	1,120		1,028		3,176		2,950
(Gain) loss on sale of assets	33		(17)		22		(73)
Non-controlling interests:
(Income) loss from consolidated joint venture attributable to non-controlling interest	(827)		31		(1,694)		(213)
Real estate depreciation and amortization	(1,422)		(1,414)		(4,261)		(2,598)
Discontinued operations:
Real estate depreciation and amortization	977		1,686		4,651		6,767
Amortization of lease intangibles	-		7		14		21
(Gain) loss on sale of assets	(38,115)		52		(38,292)		(13,966)
FFO	30,115		9,579		81,742		134,085
Operations held for investment:
Non-cash straightline lease expense	694		696		2,083		1,702
Write-off of deferred financing fees	-		-		3		-
Non-cash interest related to loss on derivatives	96		1,087		595		2,091
Loss on extinguishment of debt	-		-		191		-
Gain on remeasurement of equity interests	-		-		-		(69,230)
Lawsuit settlement costs, net	-		1,620		110		1,620
Closing costs - completed acquisitions	590		-		1,965		3,372
Prior year property tax and CAM adjustments, net	(440)		-		621		-
Hotel laundry closing costs	424		-		424		-
Impairment loss	-		10,862		-		10,862
Non-controlling interests:
Non-cash straightline lease expense	(113)		(114)		(339)		(243)
Non-cash interest related to loss on derivative	-		(4)		(1)		(32)
Prior year property tax adjustments, net	63		-		(202)		-
Discontinued operations:
Write-off of deferred financing fees	185		-		185		-
Impairment loss	-		-		-		1,495
Gain on extinguishment of debt	-		-		-		(18,145)
	1,499		14,147		5,635		(66,508)
Adjusted FFO	$	31,614	$	23,726	$	87,377	$	67,577
FFO per diluted share	$	0.22	$	0.08	$	0.66	$	1.14
Adjusted FFO per diluted share	$	0.23	$	0.20	$	0.70	$	0.58
Basic weighted average shares outstanding	135,236		117,254		124,271		117,186
Shares associated with unvested restricted stock awards	318		-		235		82
Diluted weighted average shares outstanding (1)	135,554		117,254		124,506		117,268

(1) Diluted weighted average shares outstanding includes the Series C convertible preferred stock on a “non-converted” basis.  On an “as-converted” basis, FFO per diluted share is $0.23 and $0.09, respectively, for the three months ended September 30, 2012 and 2011, and $0.67 and $1.14, respectively, for the nine months ended September 30, 2012 and 2011. On an “as-converted” basis,  Adjusted FFO per diluted share is $0.24 and $0.21, respectively, for the three months ended September 30, 2012 and 2011, and $0.71 and $0.59, respectively, for the nine months ended September 30, 2012 and 2011.

CORPORATE FINANCIAL INFORMATION Page 13  

Supplemental Financial Information – Unaudited November 1, 2012

Pro Forma Consolidated Statements of Operations

Q3 2012 – Q2 2011

	Three Months Ended (1)
(Unaudited and in thousands)	Sept. 30,		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,
	2012		2012		2012		2011		2011		2011
Revenues
Room	$	157,530	$	166,849	$	133,848	$	164,558	$	149,587	$	154,509
Food and beverage	46,250		55,246		49,227		58,741		42,631		50,974
Other operating	18,212		17,353		16,724		17,918		17,431		17,085
Total revenues	221,992		239,448		199,799		241,217		209,649		222,568
Operating Expenses
Room	40,154		39,349		37,128		41,167		37,505		36,444
Food and beverage	34,671		36,301		34,870		40,049		33,277		35,428
Other expenses	84,860		86,910		82,009		91,152		82,851		80,276
Corporate overhead	6,148		7,604		5,223		4,800		6,852		6,280
Depreciation and amortization	36,529		35,879		36,022		36,239		35,550		35,020
Impairment loss	-		-		-		-		10,862		-
Total operating expenses	202,362		206,043		195,252		213,407		206,897		193,448
Operating Income	19,630		33,405		4,547		27,810		2,752		29,120
Interest income and other income	18		74		63		55		163		59
Interest expense	(19,709)		(20,065)		(20,120)		(20,826)		(20,372)		(20,056)
Loss on extinguishment of debt	-		-		(191)		-		-		-
Income (loss) from continuing operations	(61)		13,414		(15,701)		7,039		(17,457)		9,123
Income (loss) from discontinued operations	39,984		(299)		(554)		923		797		30,134
Net Income (Loss)	$	39,923	$	13,115	$	(16,255)	$	7,962	$	(16,660)	$	39,257
Adjusted EBITDA (2)	$	56,138	$	71,551	$	40,112	$	63,935	$	51,004	$	64,755

(1)Includes the Company’s ownership results and prior ownership results for the pro forma 30 hotel portfolio held for investment by the Company as of September 30, 2012. Also includes the Series D preferred stock offering completed in April 2011.  Excludes interest income on the $90.0 million Royal Palm mortgage-secured purchase money loan due to the loan’s sale in October 2011.

(2)Pro Forma Adjusted EBITDA reconciliations can be found  in the Appendix of this supplemental package.

CORPORATE FINANCIAL INFORMATION Page 14  

Supplemental Financial Information – Unaudited
November 1, 2012

EARNINGS GUIDANCE FOR Q4 AND FULL YEAR 2012

EARNINGS GUIDANCE FOR Q4 AND FULL YEAR 2012 Page 15  

Supplemental Financial Information – Unaudited
November 1, 2012

Earnings Guidance for Q4 and FY 2012

The Company is providing guidance at this time but does not undertake to make updates for any developments in its business or changes in the operating environment.  Achievement of the Company’s anticipated results is subject to risks and uncertainties, including those disclosed in the Company’s filings with the Securities and Exchange Commission.  The Company’s guidance includes the Company’s ownership period for all 2012 acquisitions and dispositions, as well as preliminary expected disruption resulting from Hurricane Sandy subject to further review, and does not take into account the impact of any future hotel acquisitions, dispositions, re-brandings, management changes, transition costs, prior-year property tax assessments and/or credits, debt repurchases or financings during 2012.  Assuming no additional capital transactions are completed in 2012, the Company expects to apply net operating loss carryforwards to reduce taxable income in 2012.  The application of the net operating loss carryforwards is viewed as a non-recurring event and therefore the Company has treated any state and federal taxes associated with the application of net operating loss carryforwards as a one-time expense and added them back to Adjusted EBITDA and Adjusted FFO.

For the fourth quarter of 2012, the Company expects:

Metric	Quarter Ended December 31, 2012 Guidance
Comparable Hotel RevPAR	+1.5% - 3.0%
Net Income (Loss) ($ millions) (1)	$(1) - $4
Adjusted EBITDA ($ millions)	$58 - $63
Adjusted FFO ($ millions)	$31-$36
Adjusted FFO per diluted share	$0.23 - $0.27
Diluted Weighted Average Shares Outstanding	135,700,000

(1) Reflects net income adjusted for the impact of income tax expense associated with the application of net operating loss carryforwards.

EARNINGS GUIDANCE FOR Q4 AND FULL YEAR 2012 Page 16  

Supplemental Financial Information – Unaudited
November 1, 2012

Earnings Guidance for Q4 and FY 2012

For the full year 2012, the Company expects:

Metric	Prior 2012 FY Guidance (1)	Impact of Dispositions (2)	Adjusted Prior 2012 FY Guidance	Current 2012 FY Guidance (Prior to Hurricane Sandy Impact)	Change to Adjusted Prior Guidance Midpoint	Current 2012 FY Guidance (Including Current Estimate of Hurricane Sandy Impact)	Change to Adjusted Prior Guidance Midpoint
Comparable Hotel RevPAR	+5% - 7%		+5% - 7%	+5% - 5.5%	(0.75%)	+4.5% - 5.0%	(1.25%)
Net Income ($ millions) (3)	$15 - $22	($0.1)	$15 - $22	$11 - $14	($6.0)	$7 - $12	($9.0)
Adjusted EBITDA ($ millions)	$239 - $245	($3.0)	$236 - $242	$236 - $239	($1.5)	$232 - $237	($4.5)
Adjusted FFO ($ millions)	$123 - $130	($1.8)	$121 - $128	$122 - $125	($1.0)	$118 - $123	($4.0)
Adjusted FFO per diluted share	$0.97 - $1.02	($0.01)	$0.96 - $1.01	$0.96 - $0.98	($0.02)	$0.93 - $0.97	($0.04)
Diluted Weighted Average Shares Outstanding	127,900,000		127,900,000	127,500,000	(400,000)	127,500,000	(400,000)

(1) Reflects guidance presented on August 2, 2012.

(2) Reflects supplemental financial data presented in the transaction press release dated September 10, 2012.

(3) Reflects net income adjusted for the impact of income tax expense associated with the application of net operating loss carryforwards.

Fourth-quarter and full-year 2012 guidance includes the following assumptions:

· Full-year capital investment of $85 to $100 million, including the $25 million renovation of the Renaissance Washington DC. Hotel revenue disruption of $3 to $5 million related to renovation projects, with approximately $2 million of hotel revenue renovation disruption in the fourth quarter.

· Fourth-quarter RevPAR guidance assumes that hotel revenue renovation disruption will negatively impact fourth-quarter RevPAR growth by 50 to 75 basis points.

· Hotel revenue and EBITDA disruption of $3 to $4 million and $2 to $4 million, respectively, for the fourth-quarter and full-year related to Hurricane Sandy, resulting in a reduction to fourth-quarter and full-year RevPAR growth of 100 to 150 basis points and 30 to 60 basis points, respectively.

· Full-year comparable Hotel EBITDA Margins to increase by 50 to 100 basis points, which includes the impact of renovation displacement and Hurricane Sandy disruption.

· Full-year corporate overhead expense (excluding stock amortization and one-time expenses related to future acquisition closing costs) of $19 to $20 million.

· Full-year interest expense of approximately $80 to $82 million, including $4 million in amortization of deferred financing fees.

· Full-year preferred dividends (Series A, C and D) of approximately $30 million.

EARNINGS GUIDANCE FOR Q4 AND FULL YEAR 2012 Page 17  

Supplemental Financial Information – Unaudited
November 1, 2012

Reconciliation of Net Income to Adjusted EBITDA and Adjusted FFO
Q4 & FY 2012

Reconciliation of Net Income (Loss) to Adjusted EBITDA
	Quarter Ended				Year Ended
	December 31, 2012				December 31, 2012
	Low		High		Low		High
Net income (loss) (1)	$	(420)	$	4,380	$	6,550	$	12,250
Depreciation and amortization	37,000		37,000		140,000		140,000
Amortization of lease intangibles	1,200		1,200		4,300		4,300
Interest expense	17,770		17,770		78,000		78,000
Amortization of deferred financing fees	1,000		1,000		3,700		3,700
Non-controlling interests	(2,200)		(2,500)		(9,000)		(10,200)
Non-cash interest related to discount on Senior Notes	300		300		1,000		1,000
Amortization of deferred stock compensation	900		900		3,400		3,400
Income tax expense associated with the application of net operating loss carryforwards	2,000		2,500		2,000		2,500
Capital lease obligation interest - cash ground rent	(300)		(300)		(950)		(950)
Non-cash straightline lease expense	750		750		3,000		3,000
Adjusted EBITDA	$	58,000	$	63,000	$	232,000	$	237,000

Reconciliation of Net Income (Loss) to Adjusted FFO

Net income (loss) (1)	$	(420)	$	4,380	$	6,550	$	12,250
Preferred stock dividends	(7,500)		(7,500)		(30,000)		(30,000)
Real estate depreciation and amortization	36,700		36,700		138,900		138,900
Non-controlling interests	(1,700)		(2,000)		(6,300)		(7,500)
Amortization of lease intangibles	1,200		1,200		4,300		4,300
Income tax expense associated with the application of net operating loss carryforwards	2,000		2,500		2,000		2,500
Non-cash straightline lease expense	750		750		3,000		3,000
Adjusted FFO	$	31,030	$	36,030	$	118,450	$	123,450
Adjusted FFO per diluted share	$	0.23	$	0.27	$	0.93	$	0.97
Diluted weighted average shares outstanding	135,700		135,700		127,500		127,500

(1) Reflects net income adjusted for the impact of income tax expense associated with the application of net operating loss carryforwards.

EARNINGS GUIDANCE FOR Q4 AND FULL YEAR 2012 Page 18  

Supplemental Financial Information – Unaudited
November 1, 2012

CAPITALIZATION

CAPITALIZATION Page 19  

Supplemental Financial Information – Unaudited
November 1, 2012

Comparative Capitalization
Q3 2012 – Q3 2011

		Sept. 30,		June 30,		March 31,		Dec. 31,		Sept. 30,
(In thousands, except per share data)		2012		2012		2012		2011		2011
Common Share Price & Dividends
At the end of the quarter		$	11.00	$	10.99	$	9.74	$	8.15	$	5.69
High during quarter ended		$	11.70	$	10.99	$	10.00	$	8.15	$	10.03
Low during quarter ended		$	9.68	$	9.27	$	8.06	$	5.07	$	5.10
Common dividends per share		$	-	$	-	$	-	$	-	$	-
Common Shares & Units
Common shares outstanding (1)		136,777		136,783		119,108		118,672		118,672
Units outstanding		-		-		-		-		-
Total common shares and units outstanding		136,777		136,783		119,108		118,672		118,672
Capitalization
Market value of common equity		$	1,504,547	$	1,503,245	$	1,160,112	$	967,177	$	675,244
Liquidation value of preferred equity - Series A		176,250		176,250		176,250		176,250		176,250
Liquidation value of preferred equity - Series C		100,000		100,000		100,000		100,000		100,000
Liquidation value of preferred equity - Series D		115,000		115,000		115,000		115,000		115,000
Consolidated debt (2)		1,395,951		1,476,428		1,529,131		1,567,112		1,577,706
Consolidated total capitalization		3,291,748		3,370,923		3,080,493		2,925,539		2,644,200
Non-controlling interest in consolidated debt		(58,878)		(59,072)		(59,263)		(59,452)		(59,637)
Pro rata total capitalization		$	3,232,870	$	3,311,851	$	3,021,230	$	2,866,087	$	2,584,563
Consolidated debt to total capitalization		42.4%		43.8%		49.6%		53.6%		59.7%
Pro rata debt to pro rata total capitalization		41.4%		42.8%		48.7%		52.6%		58.7%
Consolidated debt and preferred equity to total capitalization		54.3%		55.4%		62.3%		66.9%		74.5%
Pro rata debt and preferred equity to total capitalization		53.5%		54.6%		61.6%		66.3%		73.9%
(1)	Reflects shares outstanding at respective dates.
(2)	Consolidated debt at June 30, 2012 does not include debt secured by the Marriott Del Mar, which was classified as held for sale and included in discontinued operations as of June 30, 2012 due to its sale in August 2012. Consolidated debt at March 31, 2012 includes the effects of the Company’s repayment of the remaining balance on its $32.2 million non-recourse mortgage secured by the Renaissance Long Beach in April 2012.  Consolidated debt at December 31, 2011 includes the effects of the Company’s repurchase of $4.5 million of its exchangeable senior notes in February 2012. Consolidated debt at September 30, 2011 includes the effects of the Company’s refinancing of the $270.0 million loan secured by interests in the Doubletree Guest Suites Times Square with a new $180.0 million seven-year non-recourse mortgage in October 2011.

CAPITALIZATION Page 20  

Supplemental Financial Information – Unaudited
November 1, 2012

Consolidated Debt Summary Schedule

(In thousands)		Interest Rate /	Maturity	September 30, 2012		Subsequent		November 1, 2012		Full Year 2012		Balance At
Debt	Collateral	Spread	Date	Balance		Principal Repayments(1)		Balance		Principal Amortization		Maturity
Fixed Rate Debt
Secured Mortgage Debt	Rochester commercial laundry facility	9.88%	6/1/2013	$	755	$	-	$	755	$	1,044	$	-
Secured Mortgage Debt	Marriott Houston	5.34%	5/1/2015	22,424		-		22,424		607		20,645
Secured Mortgage Debt	Marriott Park City	5.34%	5/1/2015	14,618		-		14,618		396		13,458
Secured Mortgage Debt	Marriott Philadelphia	5.34%	5/1/2015	26,486		-		26,486		717		24,385
Secured Mortgage Debt	Marriott Tysons Corner	5.34%	5/1/2015	43,757		-		43,757		1,185		40,285
Secured Mortgage Debt	Kahler Grand	5.34%	5/1/2015	26,974		-		26,974		730		24,834
Secured Mortgage Debt	JW Marriott New Orleans	5.45%	9/1/2015	40,811		-		40,811		773		38,094
Secured Mortgage Debt	Renaissance Harborplace	5.13%	1/1/2016	96,505		-		96,505		2,882		84,919
Secured Mortgage Debt	Hilton North Houston	5.66%	3/11/2016	32,443		-		32,443		483		30,522
Secured Mortgage Debt	Renaissance Orlando at SeaWorld®	5.52%	7/1/2016	80,669		-		80,669		1,939		72,210
Secured Mortgage Debt	Embassy Suites Chicago	5.58%	3/1/2017	72,957		-		72,957		1,300		65,577
Secured Mortgage Debt	Marriott Boston Long Wharf	5.58%	4/11/2017	176,000		-		176,000		-		176,000
Secured Mortgage Debt	Embassy Suites La Jolla	6.60%	6/1/2019	68,965		-		68,965		729		62,179
Secured Mortgage Debt	Hilton Times Square	4.97%	11/1/2020	90,062		-		90,062		1,263		75,976
Secured Mortgage Debt	Renaissance Washington DC	5.95%	5/1/2021	129,013		-		129,013		1,951		106,580
Exchangeable Senior Notes	Guaranty	4.60%	7/15/2027	58,000		-		58,000		-		58,000
Total Fixed Rate Debt				980,439		-		980,439		15,999		893,664
Secured Mortgage Debt	Hilton San Diego Bayfront	L + 3.25%	4/15/2016	235,512		-		235,512		3,067		223,008
Secured Mortgage Debt	Doubletree Guest Suites Times Square	L + 3.25%	10/10/2018	180,000		-		180,000		-		167,498
Credit Facility	Unsecured	L + 1.75% - 3.50%	11/1/2015	-		-		-		-		-
Total Variable Rate Debt				415,512		-		415,512		3,067		390,506
TOTAL CONSOLIDATED DEBT				$	1,395,951	$	-	$	1,395,951	$	19,066	$	1,284,170
Preferred Stock
Series A cumulative redeemable preferred		8.00%	perpetual	$	176,250
Series C cumulative convertible redeemable preferred		6.45%	perpetual	$	100,000
Series D cumulative redeemable preferred		8.00%	perpetual	$	115,000
Debt Statistics
% Fixed Rate Debt				70.2%				70.2%
% Floating Rate Debt				29.8%				29.8%
Average Interest Rate (2)				4.97%				4.97%
Weighted Average Maturity of Debt				5.3 years				5.3 years (3)

(1) Subsequent Principal Repayments exclude scheduled loan amortization payments on the Company’s  debt.

(2) Average Interest Rate on variable-rate debt obligations is calculated based on the variable rates at September 30, 2012 and includes the effect of the Company’s interest rate derivative agreements.

(3) Assumes the $58.0 million in outstanding exchangeable senior notes remain outstanding to maturity. If the exchangeable senior notes were redeemed upon the first put date of January 15, 2013, the weighted average maturity would be approximately 4.7 years.

CAPITALIZATION Page 21  

Supplemental Financial Information – Unaudited
November 1, 2012

Consolidated Amortization and Debt Maturity Schedule

as of September 30, 2012

(1)Percent of Current Total Capitalization is calculated by dividing the sum of scheduled principal amortization and maturity payments by the September 30, 2012 pro rata total capitalization as presented on page 20.

CAPITALIZATION Page 22  

Supplemental Financial Information – Unaudited
November 1, 2012

PROPERTY-LEVEL DATA

PROPERTY-LEVEL DATA Page 23    

Supplemental Financial Information – Unaudited
November 1, 2012

Property-Level Data

	Hotel	Location	Brand	Number of Rooms	% of Total Rooms	Ownership Interest	Interest	Leasehold Maturity (1)	Year Acquired
1	Hilton San Diego Bayfront	California	Hilton	1,190	9.26%	75%	Leasehold	2071	2011
2	Renaissance Washington DC	Washington DC	Marriott	807	6.28%	100%	Fee Simple		2005
3	Renaissance Orlando at SeaWorld® (2)	Florida	Marriott	781	6.08%	100%	Fee Simple		2005
4	Kahler Grand	Minnesota	Independent	660	5.13%	100%	Fee Simple		1999
5	Renaissance Harborplace	Maryland	Marriott	622	4.84%	100%	Leasehold	2085	2005
6	Renaissance Los Angeles Airport	California	Marriott	499	3.88%	100%	Fee Simple		2007
7	JW Marriott New Orleans (3)	Louisiana	Marriott	496	3.86%	100%	Leasehold	2044 / 2081	2011
8	Hilton North Houston	Texas	Hilton	480	3.73%	100%	Fee Simple		2002
9	Marriott Quincy	Massachusettes	Marriott	464	3.61%	100%	Fee Simple		2007
10	Doubletree Guest Suites Times Square	New York	Hilton	460	3.58%	100%	Leasehold	2127	2011
11	Hilton Times Square	New York	Hilton	460	3.58%	100%	Leasehold	2091	2006
12	Fairmont Newport Beach	California	Fairmont	444	3.45%	100%	Leasehold	2082	2005
13	Hyatt Chicago Magnificent Mile	Illinois	Hyatt	417	3.24%	100%	Leasehold	2097	2012
14	Marriott Boston Long Wharf	Massachusettes	Marriott	412	3.21%	100%	Fee Simple		2007
15	Hyatt Regency Newport Beach	California	Hyatt	403	3.14%	100%	Leasehold	2048	2002
16	Marriott Tysons Corner	Virginia	Marriott	396	3.08%	100%	Fee Simple		2002
17	Marriott Houston	Texas	Marriott	390	3.03%	100%	Fee Simple		2002
18	Renaissance Long Beach	California	Marriott	374	2.91%	100%	Fee Simple		2005
19	Embassy Suites Chicago	Illinois	Hilton	368	2.86%	100%	Fee Simple		2002
20	Hilton Garden Inn Chicago Downtown/Magnificent Mile	Illinois	Hilton	357	2.78%	100%	Fee Simple		2012
21	Renaissance Westchester	New York	Marriott	347	2.70%	100%	Fee Simple		2010
22	Embassy Suites La Jolla	California	Hilton	340	2.65%	100%	Fee Simple		2006
23	Marriott Philadephia	Pennsylvania	Marriott	289	2.25%	100%	Fee Simple		2002
24	Kahler Inn & Suites	Minnesota	Independent	271	2.11%	100%	Fee Simple		1999
25	Marriott Portland	Oregon	Marriott	249	1.94%	100%	Fee Simple		2000
26	Sheraton Cerritos	California	Starwood	203	1.58%	100%	Leasehold	2087	2005
27	Marriott Rochester	Minnesota	Marriott	202	1.57%	100%	Fee Simple		1999
28	Marriott Park City	Utah	Marriott	199	1.55%	100%	Fee Simple		1999
29	Courtyard by Marriott Los Angeles	California	Marriott	185	1.44%	100%	Leasehold	2096	1999
30	Residence Inn by Marriott Rochester	Minnesota	Marriott	89	0.69%	100%	Fee Simple		2004
	Total portfolio			12,854	100%
	(1) Assumes the full exercise of all lease extensions.  (2) Reflects 100% economic interest in the Renaissance Orlando at SeaWorld®.  (3) Hotel is subject to an air rights lease that expires in 2044 and a ground lease that expires in 2081.

PROPERTY-LEVEL DATA Page 24  

Supplemental Financial Information – Unaudited
November 1, 2012

PROPERTY-LEVEL OPERATING STATISTICS

PROPERTY-LEVEL OPERATING STATISTICS Page 25  

Supplemental Financial Information – Unaudited
November 1, 2012

Property-Level Operating Statistics

Q1 2012/2011

	Hotels sorted by number of rooms	ADR					Occupancy			RevPAR
		For the Three Months Ended March 31,					For the Three Months Ended March 31,			For the Three Months Ended March 31,
		2012		2011		Variance	2012	2011	Variance	2012		2011		Variance
1	Hilton San Diego Bayfront (1)	$	211.87	$	208.35	1.7%	79.6%	80.1%	-0.6%	$	168.65	$	166.89	1.1%
2	Renaissance Washington DC	202.54		212.98		-4.9%	62.3%	71.8%	-13.2%	126.18		152.92		-17.5%
3	Renaissance Orlando at SeaWorld ®	151.62		158.16		-4.1%	79.3%	76.3%	3.9%	120.23		120.68		-0.4%
4	Kahler Grand	115.89		112.11		3.4%	54.1%	54.1%	0.0%	62.70		60.65		3.4%
5	Renaissance Harborplace	140.17		150.61		-6.9%	60.6%	58.5%	3.6%	84.94		88.11		-3.6%
6	Renaissance Los Angeles Airport	115.13		113.46		1.5%	85.4%	79.4%	7.6%	98.32		90.09		9.1%
7	JW Marriott New Orleans (1)	182.86		174.55		4.8%	84.2%	77.5%	8.6%	153.97		135.28		13.8%
8	Hilton North Houston	106.79		101.25		5.5%	79.6%	76.0%	4.7%	85.00		76.95		10.5%
9	Marriott Quincy	146.66		146.53		0.1%	58.0%	45.5%	27.5%	85.06		66.67		27.6%
10	Doubletree Guest Suites Times Square (1)	243.29		237.25		2.5%	95.8%	92.3%	3.8%	233.07		218.98		6.4%
11	Hilton Times Square	226.66		231.02		-1.9%	96.3%	84.9%	13.4%	218.27		196.14		11.3%
12	Fairmont Newport Beach	133.51		126.68		5.4%	70.4%	76.8%	-8.3%	93.99		97.29		-3.4%
13	Hyatt Chicago Magnificent Mile (1)	110.67		104.27		6.1%	65.1%	58.4%	11.5%	72.05		60.89		18.3%
14	Marriott Boston Long Wharf	197.54		186.21		6.1%	81.7%	72.2%	13.2%	161.39		134.44		20.0%
15	Hyatt Regency Newport Beach	120.39		121.46		-0.9%	85.0%	80.7%	5.3%	102.33		98.02		4.4%
16	Marriott Tysons Corner	174.75		178.54		-2.1%	60.2%	52.8%	14.0%	105.20		94.27		11.6%
17	Marriott Houston	100.76		97.76		3.1%	76.3%	56.3%	35.5%	76.88		55.04		39.7%
18	Renaissance Long Beach	138.76		157.50		-11.9%	76.7%	69.4%	10.5%	106.43		109.31		-2.6%
19	Embassy Suites Chicago	146.98		134.23		9.5%	62.2%	61.8%	0.6%	91.42		82.95		10.2%
20	Hilton Garden Inn Chicago Downtown/Magnificent Mile (1)	118.96		115.00		3.4%	71.6%	63.1%	13.5%	85.18		72.57		17.4%
21	Renaissance Westchester	119.77		147.96		-19.1%	71.6%	51.7%	38.5%	85.76		76.50		12.1%
22	Embassy Suites La Jolla	153.84		150.26		2.4%	74.1%	75.7%	-2.1%	114.00		113.75		0.2%
23	Marriott Philadelphia	166.20		161.38		3.0%	60.1%	57.4%	4.7%	99.89		92.63		7.8%
24	Kahler Inn & Suites	113.42		104.65		8.4%	67.8%	63.7%	6.4%	76.90		66.66		15.4%
25	Marriott Portland	126.81		121.27		4.6%	76.3%	69.7%	9.5%	96.76		84.53		14.5%
26	Sheraton Cerritos	115.42		116.76		-1.1%	90.1%	66.9%	34.7%	103.99		78.11		33.1%
27	Marriott Rochester	192.84		197.56		-2.4%	61.5%	52.8%	16.5%	118.60		104.31		13.7%
28	Marriott Park City	218.53		210.17		4.0%	81.7%	88.2%	-7.4%	178.54		185.37		-3.7%
29	Courtyard by Marriott Los Angeles	137.96		134.51		2.6%	95.2%	78.6%	21.1%	131.34		105.72		24.2%
30	Residence Inn by Marriott Rochester	138.38		126.03		9.8%	75.2%	88.2%	-14.7%	104.06		111.16		-6.4%
	Comparable Portfolio	$	159.19	$	160.11	-0.6%	74.1%	69.8%	6.2%	$	117.96	$	111.76	5.5%
	(1)Includes prior ownership results for the Doubletree Guest Suites Times Square acquired by the Company on January 14, 2011, the JW Marriott New Orleans acquired by the Company on February 15, 2011, the Hilton San Diego Bayfront acquired by the Company on April 15, 2011, the Hyatt Chicago Magnificent Mile acquired by the Company on June 4, 2012, and the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired by the Company on July 19, 2012.

PROPERTY-LEVEL OPERATING STATISTICS Page 26  

Supplemental Financial Information – Unaudited
November 1, 2012

Property-Level Operating Statistics

Q2 2012/2011

	Hotels sorted by number of rooms	ADR					Occupancy			RevPAR
		For the Three Months Ended June 30,					For the Three Months Ended June 30,			For the Three Months Ended June 30,
		2012		2011		Variance	2012	2011	Variance	2012		2011		Variance
1	Hilton San Diego Bayfront (1)	$	213.47	$	188.63	13.2%	81.3%	79.6%	2.1%	$	173.55	$	150.15	15.6%
2	Renaissance Washington DC	224.54		224.16		0.2%	85.1%	83.8%	1.6%	191.08		187.85		1.7%
3	Renaissance Orlando at SeaWorld ®	144.27		128.53		12.2%	77.9%	70.9%	9.9%	112.39		91.13		23.3%
4	Kahler Grand	112.89		123.21		-8.4%	58.7%	58.5%	0.3%	66.27		72.08		-8.1%
5	Renaissance Harborplace	171.12		183.21		-6.6%	81.6%	75.5%	8.1%	139.63		138.32		0.9%
6	Renaissance Los Angeles Airport	119.46		110.98		7.6%	80.0%	80.4%	-0.5%	95.57		89.23		7.1%
7	JW Marriott New Orleans	188.44		173.28		8.7%	86.2%	86.3%	-0.1%	162.44		149.54		8.6%
8	Hilton North Houston	100.69		106.58		-5.5%	83.9%	68.5%	22.5%	84.48		73.01		15.7%
9	Marriott Quincy	149.28		145.04		2.9%	82.1%	74.3%	10.5%	122.56		107.76		13.7%
10	Doubletree Guest Suites Times Square	364.81		349.79		4.3%	98.8%	98.3%	0.5%	360.43		343.84		4.8%
11	Hilton Times Square	318.75		298.08		6.9%	98.3%	95.4%	3.0%	313.33		284.37		10.2%
12	Fairmont Newport Beach	129.31		127.19		1.7%	79.6%	80.8%	-1.5%	102.93		102.77		0.2%
13	Hyatt Chicago Magnificent Mile (1)	172.94		165.36		4.6%	82.7%	86.6%	-4.5%	143.02		143.20		-0.1%
14	Marriott Boston Long Wharf	281.48		260.10		8.2%	89.8%	89.0%	0.9%	252.77		231.49		9.2%
15	Hyatt Regency Newport Beach	131.69		123.35		6.8%	88.0%	87.4%	0.7%	115.89		107.81		7.5%
16	Marriott Tysons Corner	170.25		170.75		-0.3%	75.3%	79.5%	-5.3%	128.20		135.75		-5.6%
17	Marriott Houston	97.59		93.81		4.0%	83.5%	75.8%	10.2%	81.49		71.11		14.6%
18	Renaissance Long Beach	144.24		136.09		6.0%	79.2%	76.7%	3.3%	114.24		104.38		9.4%
19	Embassy Suites Chicago	205.73		204.94		0.4%	87.8%	85.6%	2.6%	180.63		175.43		3.0%
20	Hilton Garden Inn Chicago Downtown/Magnificent Mile (1)	184.00		179.66		2.4%	91.8%	83.7%	9.7%	168.91		150.38		12.3%
21	Renaissance Westchester	136.64		141.84		-3.7%	76.5%	73.9%	3.5%	104.53		104.82		-0.3%
22	Embassy Suites La Jolla	161.08		149.78		7.5%	80.8%	81.0%	-0.2%	130.15		121.32		7.3%
23	Marriott Philadelphia	169.53		166.22		2.0%	74.3%	76.0%	-2.2%	125.96		126.33		-0.3%
24	Kahler Inn & Suites	114.15		107.19		6.5%	69.0%	60.1%	14.8%	78.76		64.42		22.3%
25	Marriott Portland	143.06		136.20		5.0%	86.3%	82.6%	4.5%	123.46		112.50		9.7%
26	Sheraton Cerritos	110.63		111.53		-0.8%	91.9%	87.8%	4.7%	101.67		97.92		3.8%
27	Marriott Rochester	208.20		210.47		-1.1%	72.9%	62.1%	17.4%	151.78		130.70		16.1%
28	Marriott Park City	102.24		96.05		6.4%	57.7%	46.5%	24.1%	58.99		44.66		32.1%
29	Courtyard by Marriott Los Angeles	143.19		127.86		12.0%	96.7%	81.6%	18.5%	138.46		104.33		32.7%
30	Residence Inn by Marriott Rochester	135.37		134.11		0.9%	80.8%	83.9%	-3.7%	109.38		112.52		-2.8%
	Comparable Portfolio	$	179.62	$	173.50	3.5%	81.9%	78.7%	4.1%	$	147.11	$	136.54	7.7%
	(1)Includes prior ownership results for the Hilton San Diego Bayfront acquired by the Company on April 15, 2011, the Hyatt Chicago Magnificent Mile acquired by the Company on June 4, 2012, and the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired by the Company on July 19, 2012.

PROPERTY-LEVEL OPERATING STATISTICS Page 27  

Supplemental Financial Information – Unaudited
November 1, 2012

Property-Level Operating Statistics

Q3 2012/2011

	Hotels sorted by number of rooms	ADR					Occupancy			RevPAR
		For the Three Months Ended September 30,					For the Three Months Ended September 30,			For the Three Months Ended September 30,
		2012		2011		Variance	2012	2011	Variance	2012		2011		Variance
1	Hilton San Diego Bayfront	$	210.32	$	189.48	11.0%	84.7%	82.4%	2.8%	$	178.14	$	156.13	14.1%
2	Renaissance Washington DC	175.26		189.96		-7.7%	59.1%	71.0%	-16.8%	103.58		134.87		-23.2%
3	Renaissance Orlando at SeaWorld ®	115.62		106.40		8.7%	78.1%	64.8%	20.5%	90.30		68.95		31.0%
4	Kahler Grand	106.63		103.44		3.1%	60.0%	65.5%	-8.4%	63.98		67.75		-5.6%
5	Renaissance Harborplace	162.37		173.86		-6.6%	80.3%	72.7%	10.5%	130.38		126.40		3.2%
6	Renaissance Los Angeles Airport	118.35		111.03		6.6%	87.7%	87.3%	0.5%	103.79		96.93		7.1%
7	JW Marriott New Orleans	133.33		125.25		6.5%	78.4%	75.5%	3.8%	104.53		94.56		10.5%
8	Hilton North Houston	95.14		103.25		-7.9%	83.8%	55.0%	52.4%	79.73		56.79		40.4%
9	Marriott Quincy	143.30		148.01		-3.2%	83.0%	80.3%	3.4%	118.94		118.85		0.1%
10	Doubletree Guest Suites Times Square	347.69		352.68		-1.4%	98.4%	97.8%	0.6%	342.13		344.92		-0.8%
11	Hilton Times Square	296.95		300.70		-1.2%	98.6%	97.4%	1.2%	292.79		292.88		0.0%
12	Fairmont Newport Beach	141.42		142.74		-0.9%	79.9%	74.7%	7.0%	112.99		106.63		6.0%
13	Hyatt Chicago Magnificent Mile (1)	167.22		154.42		8.3%	88.8%	85.3%	4.1%	148.49		131.72		12.7%
14	Marriott Boston Long Wharf	297.27		270.70		9.8%	94.2%	89.2%	5.6%	280.03		241.46		16.0%
15	Hyatt Regency Newport Beach	145.80		146.45		-0.4%	91.4%	91.4%	0.0%	133.26		133.86		-0.4%
16	Marriott Tysons Corner	156.90		156.45		0.3%	68.9%	70.2%	-1.9%	108.10		109.83		-1.6%
17	Marriott Houston	94.62		87.39		8.3%	82.3%	71.2%	15.6%	77.87		62.22		25.2%
18	Renaissance Long Beach	123.54		118.64		4.1%	76.8%	82.3%	-6.7%	94.88		97.64		-2.8%
19	Embassy Suites Chicago	205.86		192.78		6.8%	89.1%	90.3%	-1.3%	183.42		174.08		5.4%
20	Hilton Garden Inn Chicago Downtown/Magnificent Mile (1)	179.97		170.76		5.4%	90.5%	84.0%	7.7%	162.87		143.44		13.5%
21	Renaissance Westchester	136.41		135.81		0.4%	68.9%	74.2%	-7.1%	93.99		100.77		-6.7%
22	Embassy Suites La Jolla	175.58		169.02		3.9%	85.9%	86.9%	-1.2%	150.82		146.88		2.7%
23	Marriott Philadelphia	155.42		154.95		0.3%	68.6%	70.4%	-2.6%	106.62		109.08		-2.3%
24	Kahler Inn & Suites	115.78		109.77		5.5%	65.2%	65.5%	-0.5%	75.49		71.90		5.0%
25	Marriott Portland	165.29		146.39		12.9%	91.9%	90.0%	2.1%	151.90		131.75		15.3%
26	Sheraton Cerritos	112.70		108.79		3.6%	88.1%	91.6%	-3.8%	99.29		99.65		-0.4%
27	Marriott Rochester	206.90		206.79		0.1%	69.7%	65.6%	6.2%	144.21		135.65		6.3%
28	Marriott Park City	107.57		100.94		6.6%	67.3%	67.1%	0.3%	72.39		67.73		6.9%
29	Courtyard by Marriott Los Angeles	147.85		134.91		9.6%	95.1%	95.3%	-0.2%	140.61		128.57		9.4%
30	Residence Inn by Marriott Rochester	140.14		141.69		-1.1%	75.2%	74.5%	0.9%	105.39		105.56		-0.2%
	Comparable Portfolio	$	171.02	$	167.55	2.1%	80.7%	78.4%	2.9%	$	138.01	$	131.36	5.1%
	(1)      Includes prior ownership results for the Hyatt Chicago Magnificent Mile acquired by the Company on June 4, 2012, and the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired by the Company on July 19, 2012.

PROPERTY-LEVEL OPERATING STATISTICS Page 28  

Supplemental Financial Information – Unaudited
November 1, 2012

Property-Level Operating Statistics

YTD Q3 2012/2011

	Hotels sorted by number of rooms	ADR					Occupancy			RevPAR
		For the Nine Months Ended September 30,					For the Nine Months Ended September 30,			For the Nine Months Ended September 30,
		2012		2011		Variance	2012	2011	Variance	2012		2011		Variance
1	Hilton San Diego Bayfront (1)	$	211.86	$	195.37	8.4%	81.9%	80.7%	1.5%	$	173.51	$	157.66	10.1%
2	Renaissance Washington DC	203.80		209.90		-2.9%	68.8%	75.5%	-8.9%	140.21		158.47		-11.5%
3	Renaissance Orlando at SeaWorld ®	137.24		132.43		3.6%	78.4%	70.7%	10.9%	107.60		93.63		14.9%
4	Kahler Grand	111.65		112.53		-0.8%	57.6%	59.4%	-3.0%	64.31		66.84		-3.8%
5	Renaissance Harborplace	159.53		170.69		-6.5%	74.2%	68.9%	7.7%	118.37		117.61		0.7%
6	Renaissance Los Angeles Airport	117.61		111.79		5.2%	84.4%	82.3%	2.6%	99.26		92.00		7.9%
7	JW Marriott New Orleans (1)	169.19		158.54		6.7%	82.9%	79.8%	3.9%	140.26		126.51		10.9%
8	Hilton North Houston	100.75		103.64		-2.8%	82.4%	66.4%	24.1%	83.02		68.82		20.6%
9	Marriott Quincy	146.38		146.57		-0.1%	74.4%	66.7%	11.5%	108.91		97.76		11.4%
10	Doubletree Guest Suites Times Square (1)	319.44		315.16		1.4%	97.7%	96.2%	1.6%	312.09		303.18		2.9%
11	Hilton Times Square	281.24		278.74		0.9%	97.8%	92.6%	5.6%	275.05		258.11		6.6%
12	Fairmont Newport Beach	134.83		132.08		2.1%	76.6%	77.4%	-1.0%	103.28		102.23		1.0%
13	Hyatt Chicago Magnificent Mile (1)	153.72		145.96		5.3%	78.9%	76.9%	2.6%	121.29		112.24		8.1%
14	Marriott Boston Long Wharf	261.25		242.57		7.7%	88.5%	83.5%	6.0%	231.21		202.55		14.2%
15	Hyatt Regency Newport Beach	132.98		130.99		1.5%	88.1%	86.6%	1.7%	117.16		113.44		3.3%
16	Marriott Tysons Corner	167.07		167.83		-0.5%	68.1%	67.5%	0.9%	113.77		113.29		0.4%
17	Marriott Houston	97.57		92.62		5.3%	80.7%	67.8%	19.0%	78.74		62.80		25.4%
18	Renaissance Long Beach	135.60		136.31		-0.5%	77.5%	76.1%	1.8%	105.09		103.73		1.3%
19	Embassy Suites Chicago	190.56		182.10		4.6%	79.8%	79.3%	0.6%	152.07		144.41		5.3%
20	Hilton Garden Inn Chicago Downtown/Magnificent Mile (1)	164.29		158.91		3.4%	84.7%	77.0%	10.0%	139.15		122.36		13.7%
21	Renaissance Westchester	130.98		141.18		-7.2%	72.3%	66.6%	8.6%	94.70		94.03		0.7%
22	Embassy Suites La Jolla	164.07		156.86		4.6%	80.3%	81.2%	-1.1%	131.75		127.37		3.4%
23	Marriott Philadelphia	163.77		160.96		1.7%	67.7%	67.9%	-0.3%	110.87		109.29		1.4%
24	Kahler Inn & Suites	114.43		107.25		6.7%	67.3%	63.1%	6.7%	77.01		67.67		13.8%
25	Marriott Portland	146.29		135.78		7.7%	84.9%	80.9%	4.9%	124.20		109.85		13.1%
26	Sheraton Cerritos	112.90		111.90		0.9%	90.0%	82.2%	9.5%	101.61		91.98		10.5%
27	Marriott Rochester	203.14		205.39		-1.1%	68.0%	60.2%	13.0%	138.14		123.64		11.7%
28	Marriott Park City	149.79		147.07		1.8%	68.9%	67.2%	2.5%	103.21		98.83		4.4%
29	Courtyard by Marriott Los Angeles	143.02		132.55		7.9%	95.6%	85.3%	12.1%	136.73		113.07		20.9%
30	Residence Inn by Marriott Rochester	137.91		133.57		3.2%	77.1%	82.1%	-6.1%	106.33		109.66		-3.0%
	Comparable Portfolio	$	170.29	$	167.34	1.8%	78.9%	75.6%	4.4%	$	134.36	$	126.51	6.2%
	(1)      Includes prior ownership results for the Doubletree Guest Suites Times Square acquired by the Company on January 14, 2011, the JW Marriott New Orleans acquired by the Company on February 15, 2011, the Hilton San Diego Bayfront acquired by the Company on April 15, 2011, the Hyatt Chicago Magnificent Mile acquired by the Company on June 4, 2012, and the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired by the Company on July 19, 2012.

PROPERTY-LEVEL OPERATING STATISTICS Page 29  

Supplemental Financial Information – Unaudited
November 1, 2012

Property-Level Operating Statistics

Q4 2011

	Hotels sorted by number of rooms
		For the Three Months Ended December 31, 2011
		ADR		Occupancy	RevPAR
1	Hilton San Diego Bayfront	$	194.89	73.5%	$	143.24
2	Renaissance Washington DC	210.94		70.7%	149.13
3	Renaissance Orlando at SeaWorld ®	134.01		66.3%	88.85
4	Kahler Grand	110.84		52.5%	58.19
5	Renaissance Harborplace	163.02		68.7%	111.99
6	Renaissance Los Angeles Airport	108.87		77.8%	84.70
7	JW Marriott New Orleans	145.36		81.0%	117.74
8	Hilton North Houston	100.81		69.0%	69.56
9	Marriott Quincy	151.81		71.7%	108.85
10	Doubletree Guest Suites Times Square	435.60		97.9%	426.45
11	Hilton Times Square	344.81		98.0%	337.91
12	Fairmont Newport Beach	134.85		57.3%	77.27
13	Hyatt Chicago Magnificent Mile (1)	159.13		76.9%	122.37
14	Marriott Boston Long Wharf	249.54		82.9%	206.87
15	Hyatt Regency Newport Beach	110.28		78.2%	86.24
16	Marriott Tysons Corner	168.13		67.2%	112.98
17	Marriott Houston	93.93		61.3%	57.58
18	Renaissance Long Beach	122.42		68.5%	83.86
19	Embassy Suites Chicago	192.38		78.4%	150.83
20	Hilton Garden Inn Chicago Downtown/Magnificent Mile (1)	167.45		79.6%	133.29
21	Renaissance Westchester	127.69		81.9%	104.58
22	Embassy Suites La Jolla	146.96		72.7%	106.84
23	Marriott Philadelphia	167.08		69.0%	115.29
24	Kahler Inn & Suites	112.04		61.0%	68.34
25	Marriott Portland	130.40		79.5%	103.67
26	Sheraton Cerritos	104.19		89.3%	93.04
27	Marriott Rochester	205.10		60.9%	124.91
28	Marriott Park City	130.24		51.2%	66.68
29	Courtyard by Marriott Los Angeles	123.49		92.8%	114.60
30	Residence Inn by Marriott Rochester	135.70		71.8%	97.43
	Comparable Portfolio	$	174.29	73.0%	$	127.23

(1)      Includes prior ownership results for the Hyatt Chicago Magnificent Mile acquired by the Company on June 4, 2012, and the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired by the Company on July 19, 2012.

PROPERTY-LEVEL OPERATING STATISTICS Page 30  

Supplemental Financial Information – Unaudited
November 1, 2012

Property-Level Operating Statistics

FY 2011/2010

	Hotels sorted by number of rooms	ADR					Occupancy			RevPAR
		For the Years Ended December 31,					For the Years Ended December 31,			For the Years Ended December 31,
		2011		2010		Variance	2011	2010	Variance	2011		2010		Variance
1	Hilton San Diego Bayfront (1)	$	195.26	$	187.26	4.3%	78.9%	74.5%	5.9%	$	154.06	$	139.51	10.4%
2	Renaissance Washington DC	210.20		203.82		3.1%	74.0%	73.3%	1.0%	155.55		149.40		4.1%
3	Renaissance Orlando at SeaWorld ®	132.89		129.60		2.5%	69.3%	66.4%	4.4%	92.09		86.05		7.0%
4	Kahler Grand	112.14		110.60		1.4%	57.7%	56.6%	1.9%	64.70		62.60		3.4%
5	Renaissance Harborplace	168.34		170.74		-1.4%	68.8%	67.5%	1.9%	115.82		115.25		0.5%
6	Renaissance Los Angeles Airport	110.93		105.82		4.8%	80.9%	77.7%	4.1%	89.74		82.22		9.1%
7	JW Marriott New Orleans (1)	154.43		144.14		7.1%	80.1%	79.6%	0.6%	123.70		114.74		7.8%
8	Hilton North Houston	102.91		112.39		-8.4%	67.0%	61.9%	8.2%	68.95		69.57		-0.9%
9	Marriott Quincy	148.26		141.76		4.6%	68.2%	68.8%	-0.9%	101.11		97.53		3.7%
10	Doubletree Guest Suites Times Square (1)	345.93		323.17		7.0%	96.6%	93.5%	3.3%	334.17		302.16		10.6%
11	Hilton Times Square	296.11		282.50		4.8%	94.0%	88.0%	6.8%	278.34		248.60		12.0%
12	Fairmont Newport Beach	132.63		120.76		9.8%	72.4%	74.8%	-3.2%	96.02		90.33		6.3%
13	Hyatt Chicago Magnificent Mile (1)	149.28		145.44		2.6%	76.9%	75.9%	1.3%	114.80		110.39		4.0%
14	Marriott Boston Long Wharf	244.71		236.92		3.3%	83.3%	83.5%	-0.2%	203.84		197.83		3.0%
15	Hyatt Regency Newport Beach	126.16		118.92		6.1%	84.4%	82.6%	2.2%	106.48		98.23		8.4%
16	Marriott Tysons Corner	167.92		161.74		3.8%	67.4%	67.6%	-0.3%	113.18		109.34		3.5%
17	Marriott Houston	92.93		97.17		-4.4%	66.2%	55.3%	19.7%	61.52		53.74		14.5%
18	Renaissance Long Beach	132.34		141.33		-6.4%	73.8%	66.2%	11.5%	97.67		93.56		4.4%
19	Embassy Suites Chicago	184.67		176.51		4.6%	79.1%	72.5%	9.1%	146.07		127.97		14.1%
20	Hilton Garden Inn Chicago Downtown/Magnificent Mile (1)	161.12		150.32		7.2%	77.7%	77.6%	0.1%	125.19		116.65		7.3%
21	Renaissance Westchester (1)	136.41		140.36		-2.8%	71.3%	63.4%	12.5%	97.26		88.99		9.3%
22	Embassy Suites La Jolla	154.57		153.96		0.4%	79.1%	74.6%	6.0%	122.26		114.85		6.5%
23	Marriott Philadelphia	162.87		148.27		9.8%	68.3%	68.6%	-0.4%	111.24		101.71		9.4%
24	Kahler Inn & Suites	108.43		102.13		6.2%	62.6%	62.5%	0.2%	67.88		63.83		6.3%
25	Marriott Portland	134.44		127.58		5.4%	80.5%	77.7%	3.6%	108.22		99.13		9.2%
26	Sheraton Cerritos	109.83		108.05		1.6%	84.0%	76.7%	9.5%	92.26		82.87		11.3%
27	Marriott Rochester	205.31		204.61		0.3%	60.4%	63.2%	-4.4%	124.01		129.31		-4.1%
28	Marriott Park City	143.63		138.02		4.1%	63.1%	59.1%	6.8%	90.63		81.57		11.1%
29	Courtyard by Marriott Los Angeles	130.09		116.53		11.6%	87.2%	89.7%	-2.8%	113.44		104.53		8.5%
30	Residence Inn by Marriott Rochester	134.05		126.69		5.8%	79.5%	78.0%	1.9%	106.57		98.82		7.8%
	Comparable Portfolio	$	169.21	$	163.59	3.4%	74.9%	72.3%	3.6%	$	126.74	$	118.28	7.2%

(1) Includes prior ownership results for the Renaissance Westchester during the period it was held in receivership before its reaquisition by the Company on June 14, 2010. Also includes prior ownership results for the Doubletree Guest Suites Times Square acquired by the Company on January 14, 2011, the JW Marriott New Orleans acquired by the Company on February 15, 2011, the Hilton San Diego Bayfront acquired by the Company on April 15, 2011, the Hyatt Chicago Magnificent Mile acquired by the Company on June 4, 2012, and the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired by the Company on July 19, 2012.

PROPERTY-LEVEL OPERATING STATISTICS Page 31  

Supplemental Financial Information – Unaudited
November 1, 2012

OPERATING STATISTICS BY BRAND & GEOGRAPHY

OPERATING STATISTICS BY BRAND & GEOGRAPHY Page 32  

Supplemental Financial Information – Unaudited
November 1, 2012

Comparable Portfolio Operating Statistics by Brand
Q3 & YTD 2012/2011

			FY12					FY11
			Q-T-D(September)					Q-T-D(September)
		# of Hotels	Occ	ADR		RevPAR		Occ	ADR		RevPAR		RevPAR Change
Marriott (1)		17	77.2%	$	151.69	$	117.10	75.6%	$	149.28	$	112.86	3.8%
Hilton (2)		7	89.2%	220.67		196.84		84.0%	218.78		183.78		7.1%
Hyatt (3)		2	90.0%	156.54		140.89		88.3%	150.37		132.78		6.1%
Other (4)		2	82.4%	131.79		108.59		80.0%	130.55		104.44		4.0%
Independent		2	61.5%	109.45		67.31		65.5%	105.26		68.95		-2.4%
Comparable Portfolio		30	80.7%	$	171.02	$	138.01	78.4%	$	167.55	$	131.36	5.1%
			FY12					FY11
			Y-T-D(September)					Y-T-D(September)
		# of Hotels	Occ	ADR		RevPAR		Occ	ADR		RevPAR		RevPAR Change
Marriott (1)		17	76.8%	$	158.40	$	121.65	73.2%	$	157.56	$	115.33	5.5%
Hilton (2)		7	85.8%	212.46		182.29		81.8%	207.00		169.33		7.7%
Hyatt (3)		2	83.4%	142.95		119.22		81.6%	138.16		112.74		5.7%
Other (4)		2	80.8%	127.17		102.75		78.9%	125.49		99.01		3.8%
Independent		2	60.4%	112.55		67.98		60.5%	110.94		67.12		1.3%
Comparable Portfolio		30	78.9%	$	170.29	$	134.36	75.6%	$	167.34	$	126.51	6.2%
(1)	Marriott includes prior ownership results as applicable in 2011 for the JW Marriott New Orleans acquired by the Company on February 15, 2011.
(2)	Hilton includes prior ownership results for the Hilton Garden Inn Chicago Downtown Magnificent Mile acquired by the Company on July 19, 2012. Also includes prior ownership results as applicable in 2011 for the Doubletree Guest Suites Times Square acquired by the Company on January 14, 2011, and the Hilton San Diego Bayfront acquired by the Company on April 15, 2011.
(3)	Hyatt includes prior ownership results for the Hyatt Chicago Magnificent Mile acquired by the Company on June 4, 2012.
(4)	Other includes a Fairmont and a Sheraton.

OPERATING STATISTICS BY BRAND & GEOGRAPHY Page 33  

Supplemental Financial Information – Unaudited
November 1, 2012

Pro Forma Portfolio Property-Level YTD Q3 2012 EBITDA Contribution
by Brand

Note: Consolidated Year-To-Date 2012 Hotel EBITDA of 30 hotel comparable portfolio as of September 30, 2012.

OPERATING STATISTICS BY BRAND & GEOGRAPHY Page 34  

Supplemental Financial Information – Unaudited
November 1, 2012

Comparable Portfolio Operating Statistics by Region

Q3 & YTD 2012/2011

		FY12						FY11
		Q-T-D(September)						Q-T-D(September)
	# of Hotels	Occ		ADR		RevPAR		Occ		ADR		RevPAR		RevPAR Change
California (1)	8	85.3	%	$	162.18	$	138.34	84.7	%	$	151.98	$	128.73	7.5%
Other West	4	82.4	%	$	111.31	$	91.72	68.2	%	$	108.77	$	74.18	23.6%
Midwest (2)	7	76.2	%	$	160.23	$	122.10	76.0	%	$	150.82	$	114.62	6.5%
East (3)	11	79.1	%	$	198.22	$	156.79	77.7	%	$	200.15	$	155.52	0.8%
Comparable Portfolio	30	80.7	%	$	171.02	$	138.01	78.4	%	$	167.55	$	131.36	5.1%

		FY12						FY11
		Y-T-D(September)						Y-T-D(September)
	# of Hotels	Occ		ADR		RevPAR		Occ		ADR		RevPAR		RevPAR Change
California (1)	8	82.9	%	$	159.64	$	132.34	81.1	%	$	151.91	$	123.20	7.4%
Other West	4	80.3	%	$	115.25	$	92.55	69.7	%	$	113.84	$	79.35	16.6%
Midwest (2)	7	71.6	%	$	151.60	$	108.55	69.6	%	$	146.30	$	101.82	6.6%
East (3)	11	79.1	%	$	199.86	$	158.09	76.2	%	$	199.92	$	152.34	3.8%
Comparable Portfolio	30	78.9	%	$	170.29	$	134.36	75.6	%	$	167.34	$	126.51	6.2%

(1)	California includes prior ownership results as applicable in 2011 for the Hilton San Diego Bayfront acquired by the Company on April 15, 2011.
(2)	Midwest includes prior ownership results for the Hyatt Chicago Magnificent Mile acquired by the Company on June 4, 2012, and the Hilton Garden Inn Chicago Downtown Magnificent Mile acquired by the Company on July 19, 2012.
(3)	East includes prior ownership results as applicable in 2011 for the Doubletree Guest Suites Times Square acquired by the Company on January 14, 2011, and the JW Marriott New Orleans acquired by the Company on February 15, 2011.

OPERATING STATISTICS BY BRAND & GEOGRAPHY Page 35  

Supplemental Financial Information – Unaudited
November 1, 2012

PROPERTY-LEVEL EBITDA & EBITDA MARGINS

PROPERTY-LEVEL EBITDA & EBITDA MARGINS Page 36  

Supplemental Financial Information – Unaudited
November 1, 2012

Property-Level EBITDA
Q3 & YTD 2012/2011

	Hotels sorted by number of rooms	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	(In thousands)	2012		2011			2012		2011
		Hotel EBITDA (2)		Hotel EBITDA (2)		% Change	Hotel EBITDA (2)		Hotel EBITDA (2)		% Change
1	Hilton San Diego Bayfront (1) (3) (4)	$	11,930	$	8,415	42%	$	32,679	$	28,525	15%
2	Renaissance Washington DC (4)	827		2,815		-71%	10,465		14,824		-29%
3	Renaissance Orlando at SeaWorld ® (4)	1,930		382		405%	11,833		8,603		38%
4	Kahler Grand (4)	1,872		1,925		-3%	5,549		5,513		1%
5	Renaissance Harborplace (3) (4)	2,996		2,484		21%	7,406		7,223		3%
6	Renaissance Los Angeles Airport	892		933		-4%	3,043		2,614		16%
7	JW Marriott New Orleans	602		677		-11%	6,913		6,029		15%
8	Hilton North Houston (4)	928		532		74%	3,698		2,478		49%
9	Marriott Quincy	1,860		1,758		6%	4,759		3,669		30%
10	Doubletree Guest Suites Times Square (1) (4)	5,997		6,241		-4%	14,370		13,964		3%
11	Hilton Times Square	3,914		4,051		-3%	10,202		9,138		12%
12	Fairmont Newport Beach (4)	1,527		1,188		29%	3,686		3,596		3%
13	Hyatt Chicago Magnificent Mile	1,928		2,233		-14%	3,490		3,702		-6%
14	Marriott Boston Long Wharf	5,419		3,894		39%	11,925		8,648		38%
15	Hyatt Regency Newport Beach (4)	1,946		1,972		-1%	4,388		4,465		-2%
16	Marriott Tysons Corner	1,389		1,266		10%	4,864		4,690		4%
17	Marriott Houston (4)	689		595		16%	2,698		1,448		86%
18	Renaissance Long Beach	823		917		-10%	3,571		3,397		5%
19	Embassy Suites Chicago (4)	3,099		2,763		12%	7,148		6,698		7%
20	Hilton Garden Inn Chicago Downtown/Magnificent Mile	2,624		2,100		25%	5,610		4,644		21%
21	Renaissance Westchester (4)	295		470		-37%	899		1,030		-13%
22	Embassy Suites La Jolla (4)	2,459		2,398		3%	6,681		5,889		13%
23	Marriott Philadelphia	660		692		-5%	2,549		2,676		-5%
24	Kahler Inn & Suites (4)	789		732		8%	2,515		2,070		21%
25	Marriott Portland (4)	1,950		1,629		20%	4,274		3,551		20%
26	Sheraton Cerritos	632		615		3%	2,037		1,613		26%
27	Marriott Rochester (4)	1,379		1,260		9%	3,564		2,883		24%
28	Marriott Park City	233		186		25%	2,059		1,933		7%
29	Courtyard by Marriott Los Angeles	964		808		19%	2,732		1,719		59%
30	Residence Inn by Marriott Rochester	427		409		4%	1,238		1,288		-4%
	Comparable Portfolio	$	62,980	$	56,340	12%	$	186,845	$	168,520	11%
	(1)Reflects 100% ownership. (2)Reconciliations to Net Income (Loss) provided on pages 64, 65, 67 and 68. (3)Hotel EBITDA for the third quarter of 2012 is impacted by the following: $0.3 million credit related to prior year property tax expense at the Hilton San Diego Bayfront; and $0.2 million credit related to prior year CAM expense at the Renaissance Harborplace. (4)Hotel EBITDA for the first nine months of 2012 is impacted by: (1) $0.2 million credit related to prior year CAM expense at the Renaissance Harborplace; and (2) a total of $0.4 million in property tax credits net of (assessments) received at the following hotels: Embassy Suites Chicago $611,000; Embassy Suites La Jolla $301,000; Hilton North Houston $56,000; Hilton San Diego Bayfront $(811,000); Kahler Grand $44,000; Kahler Inn & Suites $15,000; Marriott Houston $43,000; Marriott Rochester $10,000; and Renaissance Harborplace $106,000. Hotel EBITDA for the first nine months of 2011 is impacted by a total of $0.6 million in property tax credits net of (assessments) received at the following hotels: Doubletree Guest Suites Times Square $(112,000); Embassy Suites Chicago $177,000; Embassy Suites La Jolla $2,000; Fairmont Newport Beach $485,000; Hilton North Houston $123,000; Hyatt Regency Newport Beach $31,000; Kahler Grand $(1,000); Marriott Houston $(33,000); Marriott Portland $48,000;  Marriott Rochester $(2,000); Renaissance Harborplace $157,000; Renaissance Orlando at SeaWorld ® $(9,000); Renaissance Washington DC $(54,000); and Renaissance Westchester $(212,000).

PROPERTY-LEVEL EBITDA & EBITDA MARGINS Page 37  

Supplemental Financial Information – Unaudited
November 1, 2012

Property-Level EBITDA Margins
Q3 & YTD 2012/2011

	Hotels sorted by number of rooms	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
		2012		2011			2012		2011
		Hotel EBITDA		Hotel EBITDA		Change in	Hotel EBITDA		Hotel EBITDA		Change in
		Margin		Margin		bps	Margin		Margin		bps
1	Hilton San Diego Bayfront (1) (2) (3)	38.8	%	31.5	%	730 bps	35.4	%	33.7	%	170 bps
2	Renaissance Washington DC (3)	7.7	%	20.2	%	(1,250) bps	23.5	%	30.0	%	(650) bps
3	Renaissance Orlando at SeaWorld ® (3)	17.0	%	4.8	%	1,220 bps	29.1	%	25.3	%	380 bps
4	Kahler Grand (3)	31.2	%	30.7	%	50 bps	31.7	%	30.4	%	130 bps
5	Renaissance Harborplace (2) (3)	30.6	%	26.6	%	400 bps	26.3	%	25.8	%	50 bps
6	Renaissance Los Angeles Airport	15.8	%	17.5	%	(170) bps	17.9	%	16.6	%	130 bps
7	JW Marriott New Orleans	10.3	%	12.5	%	(220) bps	30.2	%	29.4	%	80 bps
8	Hilton North Houston (3)	17.0	%	13.9	%	310 bps	21.7	%	17.6	%	410 bps
9	Marriott Quincy	28.4	%	26.3	%	210 bps	25.9	%	21.5	%	440 bps
10	Doubletree Guest Suites Times Square (1) (3)	35.0	%	35.7	%	(70) bps	30.9	%	30.7	%	20 bps
11	Hilton Times Square	29.0	%	29.6	%	(60) bps	26.8	%	25.3	%	150 bps
12	Fairmont Newport Beach (3)	21.4	%	18.7	%	270 bps	18.8	%	19.1	%	(30) bps
13	Hyatt Chicago Magnificent Mile	25.4	%	32.3	%	(690) bps	18.8	%	20.9	%	(210) bps
14	Marriott Boston Long Wharf	41.5	%	35.5	%	600 bps	35.7	%	30.7	%	500 bps
15	Hyatt Regency Newport Beach (3)	22.2	%	21.9	%	30 bps	19.0	%	19.5	%	(50) bps
16	Marriott Tysons Corner	30.0	%	26.5	%	350 bps	32.2	%	30.7	%	150 bps
17	Marriott Houston (3)	18.6	%	19.8	%	(120) bps	23.2	%	15.3	%	790 bps
18	Renaissance Long Beach	19.1	%	21.5	%	(240) bps	25.1	%	24.6	%	50 bps
19	Embassy Suites Chicago (3)	43.3	%	41.0	%	230 bps	39.9	%	39.3	%	60 bps
20	Hilton Garden Inn Chicago Downtown/Magnificent Mile	44.2	%	40.0	%	420 bps	37.1	%	34.6	%	250 bps
21	Renaissance Westchester (3)	6.5	%	10.7	%	(420) bps	6.5	%	8.0	%	(150) bps
22	Embassy Suites La Jolla (3)	45.0	%	44.5	%	50 bps	45.4	%	41.8	%	360 bps
23	Marriott Philadelphia	17.6	%	17.4	%	20 bps	20.6	%	21.5	%	(90) bps
24	Kahler Inn & Suites (3)	39.0	%	37.9	%	110 bps	40.7	%	38.0	%	270 bps
25	Marriott Portland (3)	47.1	%	44.7	%	240 bps	41.4	%	38.7	%	270 bps
26	Sheraton Cerritos	23.0	%	22.4	%	60 bps	23.6	%	21.1	%	250 bps
27	Marriott Rochester (3)	37.8	%	37.0	%	80 bps	35.4	%	32.8	%	260 bps
28	Marriott Park City	12.3	%	10.1	%	220 bps	26.6	%	25.6	%	100 bps
29	Courtyard by Marriott Los Angeles	34.1	%	31.6	%	250 bps	33.3	%	26.1	%	720 bps
30	Residence Inn by Marriott Rochester	46.6	%	44.3	%	230 bps	44.7	%	45.0	%	(30) bps
	Comparable Portfolio	29.0	%	27.5	%	150 bps	28.9	%	27.7	%	120 bps
	Adjusted Comparable Portfolio (2) (3)	28.8	%	27.5	%	130 bps	28.8	%	27.6	%	120 bps
	(1)Reflects 100% ownership. (2)Hotel EBITDA for the third quarter of 2012 is impacted by the following: $0.3 million credit related to prior year property tax expense at the Hilton San Diego Bayfront; and $0.2 million credit related to prior year CAM expense at the Renaissance Harborplace. (3)Hotel EBITDA for the first nine months of 2012 is impacted by: (1) $0.2 million credit related to prior year CAM expense at the Renaissance Harborplace; and (2) a total of $0.4 million in property tax credits net of (assessments) received at the following hotels: Embassy Suites Chicago $611,000; Embassy Suites La Jolla $301,000; Hilton North Houston $56,000; Hilton San Diego Bayfront $(811,000); Kahler Grand $44,000; Kahler Inn & Suites $15,000; Marriott Houston $43,000; Marriott Rochester $10,000; and Renaissance Harborplace $106,000. Hotel EBITDA for the first nine months of 2011 is impacted by a total of $0.6 million in property tax credits net of (assessments) received at the following hotels: Doubletree Guest Suites Times Square $(112,000); Embassy Suites Chicago $177,000; Embassy Suites La Jolla $2,000; Fairmont Newport Beach $485,000; Hilton North Houston $123,000; Hyatt Regency Newport Beach $31,000; Kahler Grand $(1,000); Marriott Houston $(33,000); Marriott Portland $48,000;  Marriott Rochester $(2,000); Renaissance Harborplace $157,000; Renaissance Orlando at SeaWorld ® $(9,000); Renaissance Washington DC $(54,000); and Renaissance Westchester $(212,000).

PROPERTY-LEVEL EBITDA & EBITDA MARGINS Page 38  

Supplemental Financial Information – Unaudited
November 1, 2012

APPENDIX

APPENDIX Page 39  

Supplemental Financial Information – Unaudited
November 1, 2012

Reconciliation of Pro Forma Net Income (Loss) to EBITDA and Adjusted EBITDA
Q1 2012

	Three Months Ended March 31, 2012
					Acquisition:		Acquisition:
			Discontinued		Hyatt		Hilton Garden Inn		Pro
(In thousands, except per share amounts)	Actual (1)		Operations (2)		Chicago (3)		Chicago (4)		Forma (5)
Net loss	$	(12,968)	$	554	$	(2,593)	$	(694)	$	(15,701)
Operations held for investment:
Depreciation and amortization	32,963		-		1,950		1,109		36,022
Amortization of lease intangibles	1,028		-		-		-		1,028
Interest expense	18,477		-		351		-		18,828
Amortization of deferred financing fees	950		-		-		-		950
Non-cash interest related to discount on Senior Notes	266		-		-		-		266
Non-cash interest related to loss on derivatives	76		-		-		-		76
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest	(560)		-		-		-		(560)
Depreciation and amortization	(1,419)		-		-		-		(1,419)
Interest expense	(570)		-		-		-		(570)
Amortization of deferred financing fees	(56)		-		-		-		(56)
Non-cash interest related to loss on derivative	(1)		-		-		-		(1)
Discontinued operations:
Depreciation and amortization	1,793		(1,793)		-		-		-
Amortization of lease intangibles	7		(7)		-		-		-
Interest expense	1,717		(1,717)		-		-		-
Amortization of deferred financing fees	17		(17)		-		-		-
EBITDA	41,720		(2,980)		(292)		415		38,863
Operations held for investment:
Amortization of deferred stock compensation	946		-		-		-		946
Non-cash straightline lease expense	696		-		-		-		696
Capital lease obligation interest - cash ground rent	-		-		(351)		-		(351)
Gain on sale of assets	(11)		-		-		-		(11)
Loss on extinguishment of debt	191		-		-		-		191
Lawsuit settlement reversal of costs	(145)		-		-		-		(145)
Closing costs - completed acquisitions	36		-		-		-		36
Non-controlling interests:
Non-cash straightline lease expense	(113)		-		-		-		(113)
Discontinued operations:
Gain on sale of assets	(177)		177		-		-		-
	1,423		177		(351)		-		1,249
Adjusted EBITDA	$	43,143	$	(2,803)	$	(643)	$	415	$	40,112
*Footnotes on following page

APPENDIX Page 40  

Supplemental Financial Information – Unaudited
November 1, 2012

Reconciliation of Pro Forma Net Income (Loss) to FFO and Adjusted FFO Q1 2012
	Three Months Ended March 31, 2012
					Acquisition:		Acquisition:
			Discontinued		Hyatt		Hilton Garden Inn		Pro
(In thousands, except per share amounts)	Actual (1)		Operations (2)		Chicago (3)		Chicago (4)		Forma (5)
Net loss	$	(12,968)	$	554	$	(2,593)	$	(694)	$	(15,701)
Preferred stock dividends	(7,437)		-		-		-		(7,437)
Operations held for investment:
Real estate depreciation and amortization	32,656		-		1,950		1,109		35,715
Amortization of lease intangibles	1,028		-		-		-		1,028
Gain on sale of assets	(11)		-		-		-		(11)
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest	(560)		-		-		-		(560)
Real estate depreciation and amortization	(1,419)		-		-		-		(1,419)
Discontinued operations:
Real estate depreciation and amortization	1,793		(1,793)		-		-		-
Amortization of lease intangibles	7		(7)		-		-		-
Gain on sale of assets	(177)		177		-		-		-
FFO	12,912		(1,069)		(643)		415		11,615
Operations held for investment:
Non-cash straightline lease expense	696		-		-		-		696
Non-cash interest related to loss on derivatives	76		-		-		-		76
Loss on extinguishment of debt	191		-		-		-		191
Lawsuit settlement reversal of costs	(145)		-		-		-		(145)
Closing costs - completed acquisitions	36		-		-		-		36
Non-controlling interests:
Non-cash straightline lease expense	(113)		-		-		-		(113)
Non-cash interest related to loss on derivative	(1)		-		-		-		(1)
	740		-		-		-		740
Adjusted FFO	$	13,652	$	(1,069)	$	(643)	$	415	$	12,355
FFO per diluted share	$	0.11							$	0.10
Adjusted FFO per diluted share	$	0.12							$	0.11
Basic weighted average shares outstanding	117,426								117,426
Shares associated with unvested restricted stock awards	155								155
Diluted weighted average shares outstanding (6)	117,581								117,581

(1) Actual represents the Company’s ownership results for the 32 hotels in which the Company has interests as of March 31, 2012.  In accordance with the September 30, 2012 presentation, 28 hotels are classified as held for investment and four have been reclassified as discontinued operations.

(2) Discontinued Operations  represents the final distribution of proceeds on a subordinate note held by the Company prior to the purchase of the Royal Palm Miami Beach, along with reimbursements for expenses related to the Royal Palm Miami Beach which was sold in April 2011 plus the ownership results for the Marriott Del Mar which was sold in August 2012, along with  the Doubletree Guest Suites Minneapolis, Hilton Del Mar, Marriott Troy and an office building adjacent to the Marriott Troy, which were sold in September 2012.

(3) Acquisition: Hyatt Chicago Magnificent Mile represents prior ownership results for the hotel which was acquired by the Company on June 4, 2012, adjusted for the Company’s pro forma depreciation expense and ground lease payment classified as a capital lease for accounting purposes.

(4) Acquisition: Hilton Garden Inn Chicago Downtown/Magnificent Mile represents prior ownership results for the hotel which was acquired by the Company on July 19, 2012, adjusted for the Company’s pro forma depreciation expense.

(5) Pro Forma represents the Company’s ownership results and prior ownership results for the pro forma 30 hotel portfolio.

(6) Diluted weighted average shares outstanding includes the Series C convertible preferred stock on a “non-converted” basis.

APPENDIX Page 41  

Supplemental Financial Information – Unaudited
November 1, 2012

Reconciliation of Pro Forma Net Income (Loss) to EBITDA and Adjusted EBITDA
Q2 2012

	Three Months Ended June 30, 2012
					Acquisition:		Acquisition:
			Discontinued		Hyatt		Hilton Garden Inn		Pro
(In thousands, except per share amounts)	Actual (1)		Operations (2)		Chicago (3)		Chicago (4)		Forma (5)
Net income	$	11,855	$	299	$	(202)	$	1,462	$	13,414
Operations held for investment:
Depreciation and amortization	33,407		-		1,363		1,109		35,879
Amortization of lease intangibles	1,028		-		-		-		1,028
Interest expense	18,201		-		234		-		18,435
Amortization of deferred financing fees	946		-		-		-		946
Write-off of deferred financing fees	3		-		-		-		3
Non-cash interest related to discount on Senior Notes	258		-		-		-		258
Non-cash interest related to loss on derivatives	423		-		-		-		423
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest	(307)		-		-		-		(307)
Depreciation and amortization	(1,420)		-		-		-		(1,420)
Interest expense	(567)		-		-		-		(567)
Amortization of deferred financing fees	(56)		-		-		-		(56)
Discontinued operations:
Depreciation and amortization	1,881		(1,881)		-		-		-
Amortization of lease intangibles	7		(7)		-		-		-
Interest expense	1,709		(1,709)		-		-		-
Amortization of deferred financing fees	16		(16)		-		-		-
EBITDA	67,384		(3,314)		1,395		2,571		68,036
Operations held for investment:
Amortization of deferred stock compensation	896		-		-		-		896
Non-cash straightline lease expense	693		-		-		-		693
Capital lease obligation interest - cash ground rent	(117)		-		(234)		-		(351)
Lawsuit settlement costs	255		-		-		-		255
Closing costs - completed acquisitions	1,339		-		-		-		1,339
Prior year property tax adjustment	1,061		-		-		-		1,061
Non-controlling interests:
Non-cash straightline lease expense	(113)		-		-		-		(113)
Prior year property tax adjustment	(265)		-		-		-		(265)
	3,749		-		(234)		-		3,515
Adjusted EBITDA	$	71,133	$	(3,314)	$	1,161	$	2,571	$	71,551
*Footnotes on following page

APPENDIX Page 42  

Supplemental Financial Information – Unaudited
November 1, 2012

Reconciliation of Pro Forma Net Income (Loss) to FFO and Adjusted FFO
Q2 2012

	Three Months Ended June 30, 2012
					Acquisition:		Acquisition:
			Discontinued		Hyatt		Hilton Garden Inn		Pro
(In thousands, except per share amounts)	Actual (1)		Operations (2)		Chicago (3)		Chicago (4)		Forma (5)
Net income	$	11,855	$	299	$	(202)	$	1,462	$	13,414
Preferred stock dividends	(7,437)		-		-		-		(7,437)
Operations held for investment:
Real estate depreciation and amortization	33,108		-		1,363		1,109		35,580
Amortization of lease intangibles	1,028		-		-		-		1,028
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest	(307)		-		-		-		(307)
Real estate depreciation and amortization	(1,420)		-		-		-		(1,420)
Discontinued operations:
Real estate depreciation and amortization	1,881		(1,881)		-		-		-
Amortization of lease intangibles	7		(7)		-		-		-
FFO	38,715		(1,589)		1,161		2,571		40,858
Operations held for investment:
Non-cash straightline lease expense	693		-		-		-		693
Write-off of deferred financing fees	3		-		-		-		3
Non-cash interest related to loss on derivatives	423		-		-		-		423
Lawsuit settlement costs	255		-		-		-		255
Closing costs - completed acquisitions	1,339		-		-		-		1,339
Prior year property tax adjustment	1,061		-		-		-		1,061
Non-controlling interests:
Non-cash straightline lease expense	(113)		-		-		-		(113)
Prior year property tax adjustment	(265)		-		-		-		(265)
	3,396		-		-		-		3,396
Adjusted FFO	$	42,111	$	(1,589)	$	1,161	$	2,571	$	44,254
FFO per diluted share	$	0.32							$	0.34
Adjusted FFO per diluted share	$	0.35							$	0.37
Basic weighted average shares outstanding	120,029								120,029
Shares associated with unvested restricted stock awards	228								228
Diluted weighted average shares outstanding (6)	120,257								120,257
(1)Actual represents the Company’s ownership results for the 33 hotels in which the Company has interests as of June 30, 2012.   In accordance with the September 30, 2012 presentation, 29 hotels are classified as held for investment and four have been reclassified as discontinued operations.
(2)Discontinued Operations  represents the ownership results for the Marriott Del Mar which was  sold in August 2012, along with  the Doubletree Guest Suites Minneapolis, Hilton Del Mar, Marriott Troy and an office building adjacent to the Marriott Troy, which were sold in September 2012.
(3)Acquisition: Hyatt Chicago Magnificent Mile represents prior ownership results for the hotel which was acquired by the Company on June 4, 2012, adjusted for the Company’s pro forma depreciation expense and ground lease payment classified as a capital lease for accounting purposes.
(4)Acquisition: Hilton Garden Inn Chicago Downtown/Magnificent Mile represents prior ownership results for the hotel which was acquired by the Company on July 19, 2012, adjusted for the Company’s pro forma depreciation expense.
(5)Pro Forma represents the Company’s ownership results and prior ownership results for the pro forma 30 hotel portfolio.
(6)Diluted weighted average shares outstanding includes the Series C convertible preferred stock on a “non-converted” basis.

APPENDIX Page 43  

Supplemental Financial Information – Unaudited
November 1, 2012

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

Q3 2012

	Three Months Ended September 30, 2012
					Acquisition:
			Discontinued		Hilton Garden Inn		Pro
(In thousands, except per share amounts)	Actual (1)		Operations (2)		Chicago (3)		Forma (4)
Net income	$	39,556	$	(39,984)	$	367	$	(61)
Operations held for investment:
Depreciation and amortization	36,529		-		-		36,529
Amortization of lease intangibles	1,120		-		-		1,120
Interest expense	18,417		-		-		18,417
Amortization of deferred financing fees	929		-		-		929
Non-cash interest related to discount on Senior Notes	267		-		-		267
Non-cash interest related to loss on derivatives	96		-		-		96
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest	(827)		-		-		(827)
Depreciation and amortization	(1,422)		-		-		(1,422)
Interest expense	(566)		-		-		(566)
Amortization of deferred financing fees	(56)		-		-		(56)
Discontinued operations:
Depreciation and amortization	977		(977)		-		-
Interest expense	1,237		(1,237)		-		-
Amortization of deferred financing fees	13		(13)		-		-
Write-off of deferred financing fees	185		(185)		-		-
EBITDA	96,455		(42,396)		367		54,426
Operations held for investment:
Amortization of deferred stock compensation	812		-		-		812
Non-cash straightline lease expense	694		-		-		694
Capital lease obligation interest - cash ground rent	(351)		-		-		(351)
Loss on sale of assets	33		-		-		33
Closing costs - completed acquisitions	590		-		-		590
Prior year property tax and CAM adjustments, net	(440)		-		-		(440)
Hotel laundry closing costs	424		-		-		424
Non-controlling interests:
Non-cash straightline lease expense	(113)		-		-		(113)
Prior year property tax adjustment	63		-		-		63
Discontinued operations:
Gain on sale of assets	(38,115)		38,115		-		-
	(36,403)		38,115		-		1,712
Adjusted EBITDA	$	60,052	$	(4,281)	$	367	$	56,138
*Footnotes on following page

APPENDIX Page 44  

Supplemental Financial Information – Unaudited
November 1, 2012

Reconciliation of Pro Forma Net Income (Loss) to FFO and Adjusted FFO
Q3 2012

	Three Months Ended September 30, 2012
							Acquisition:
				Discontinued			Hilton Garden Inn		Pro
(In thousands, except per share amounts)	Actual (1)			Operations (2)			Chicago (3)		Forma (4)
Net income	$	39,556		$	(39,984	)	$	367	$	(61)
Preferred stock dividends	(7,437		)	-			-		(7,437)
Operations held for investment:
Real estate depreciation and amortization	36,230			-			-		36,230
Amortization of lease intangibles	1,120			-			-		1,120
Loss on sale of assets	33			-			-		33
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest	(827		)	-			-		(827)
Real estate depreciation and amortization	(1,422		)	-			-		(1,422)
Discontinued operations:
Real estate depreciation and amortization	977			(977		)	-		-
Gain on sale of assets	(38,115		)	38,115			-		-
FFO	30,115			(2,846		)	367		27,636
Operations held for investment:
Non-cash straightline lease expense	694			-			-		694
Non-cash interest related to loss on derivatives	96			-			-		96
Closing costs - completed acquisitions	590			-			-		590
Prior year property tax and CAM adjustments, net	(440		)	-			-		(440)
Hotel laundry closing costs	424			-			-		424
Non-controlling interests:
Non-cash straightline lease expense	(113		)	-			-		(113)
Prior year property tax adjustment	63			-			-		63
Discontinued operations:
Write-off of deferred financing fees	185			(185		)	-		-
	1,499			(185		)	-		1,314
Adjusted FFO	$	31,614		$	(3,031	)	$	367	$	28,950
FFO per diluted share	$	0.22							$	0.20
Adjusted FFO per diluted share	$	0.23							$	0.21
Basic weighted average shares outstanding	135,236								135,236
Shares associated with unvested restricted stock awards	318								318
Diluted weighted average shares outstanding (5)	135,554								135,554
(1) Actual represents the Company’s ownership results for the 30 hotels in which the Company has interests as of September 30, 2012.
(2) Discontinued Operations  represents the ownership results for the Marriott Del Mar which was  sold in August 2012, along with  the Doubletree Guest Suites Minneapolis, Hilton Del Mar, Marriott Troy and an office building adjacent to the Marriott Troy, which were sold in September 2012.
(3) Acquisition: Hilton Garden Inn Chicago Downtown/Magnificent Mile represents prior ownership results for the hotel which was acquired by the Company on July 19, 2012.
(4) Pro Forma represents the Company’s ownership results and prior ownership results for the pro forma 30 hotel portfolio.
(5) Diluted weighted average shares outstanding includes the Series C convertible preferred stock on a “non-converted” basis.

APPENDIX Page 45  

Supplemental Financial Information – Unaudited
November 1, 2012

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

YTD Q3 2012

	Nine Months Ended September 30, 2012
						Acquisition:			Acquisition:
			Discontinued			Hyatt			Hilton Garden Inn		Pro
(In thousands, except per share amounts)	Actual (1)		Operations (2)			Chicago (3)			Chicago (4)		Forma (5)
Net income	$	38,443	$	(39,131	)	$	(2,795	)	$	1,135	$	(2,348)
Operations held for investment:
Depreciation and amortization	102,899		-			3,313			2,218		108,430
Amortization of lease intangibles	3,176		-			-			-		3,176
Interest expense	55,095		-			585			-		55,680
Amortization of deferred financing fees	2,825		-			-			-		2,825
Write-off of deferred financing fees	3		-			-			-		3
Non-cash interest related to discount on Senior Notes	791		-			-			-		791
Non-cash interest related to loss on derivatives	595		-			-			-		595
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest	(1,694)		-			-			-		(1,694)
Depreciation and amortization	(4,261)		-			-			-		(4,261)
Interest expense	(1,703)		-			-			-		(1,703)
Amortization of deferred financing fees	(168)		-			-			-		(168)
Non-cash interest related to loss on derivatives	(1)		-			-			-		(1)
Discontinued operations:
Depreciation and amortization	4,651		(4,651		)	-			-		-
Amortization of lease intangibles	14		(14		)	-			-		-
Interest expense	4,663		(4,663		)	-			-		-
Amortization of deferred financing fees	46		(46		)	-			-		-
Write-off of deferred financing fees	185		(185		)	-			-		-
EBITDA	205,559		(48,690		)	1,103			3,353		161,325
Operations held for investment:
Amortization of deferred stock compensation	2,654		-			-			-		2,654
Non-cash straightline lease expense	2,083		-			-			-		2,083
Capital lease obligation interest - cash ground rent	(468)		-			(585		)	-		(1,053)
Loss on sale of assets	22		-			-			-		22
Loss on extinguishment of debt	191		-			-			-		191
Lawsuit settlement costs, net	110		-			-			-		110
Closing costs - completed acquisitions	1,965		-			-			-		1,965
Prior year property tax and CAM adjustments, net	621		-			-			-		621
Hotel laundry closing costs	424		-			-			-		424
Non-controlling interests:
Non-cash straightline lease expense	(339)		-			-			-		(339)
Prior year property tax adjustments, net	(202)		-			-			-		(202)
Discontinued operations:
Gain on sale of assets	(38,292)		38,292			-			-		-
	(31,231)		38,292			(585		)	-		6,476
Adjusted EBITDA	$	174,328	$	(10,398	)	$	518		$	3,353	$	167,801
*Footnotes on following page

APPENDIX Page 46  

Supplemental Financial Information – Unaudited
November 1, 2012

Reconciliation of Pro Forma Net Income (Loss) to FFO and Adjusted FFO
YTD Q3 2012

	Nine Months Ended September 30, 2012
							Acquisition:			Acquisition:
				Discontinued			Hyatt			Hilton Garden Inn		Pro
(In thousands, except per share amounts)	Actual (1)			Operations (2)			Chicago (3)			Chicago (4)		Forma (5)
Net income	$	38,443		$	(39,131	)	$	(2,795	)	$	1,135	$	(2,348	)
Preferred stock dividends	(22,311		)	-			-			-		(22,311		)
Operations held for investment:
Real estate depreciation and amortization	101,994			-			3,313			2,218		107,525
Amortization of lease intangibles	3,176			-			-			-		3,176
Loss on sale of assets	22			-			-			-		22
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest	(1,694		)	-			-			-		(1,694		)
Real estate depreciation and amortization	(4,261		)	-			-			-		(4,261		)
Discontinued operations:
Real estate depreciation and amortization	4,651			(4,651		)	-			-		-
Amortization of lease intangibles	14			(14		)	-			-		-
Gain on sale of assets	(38,292		)	38,292			-			-		-
FFO	81,742			(5,504		)	518			3,353		80,109
Operations held for investment:
Non-cash straightline lease expense	2,083			-			-			-		2,083
Write-off of deferred financing fees	3			-			-			-		3
Non-cash interest related to loss on derivatives	595			-			-			-		595
Loss on extinguishment of debt	191			-			-			-		191
Lawsuit settlement costs, net	110			-			-			-		110
Closing costs - completed acquisitions	1,965			-			-			-		1,965
Prior year property tax and CAM adjustments, net	621			-			-			-		621
Hotel laundry closing costs	424			-			-			-		424
Non-controlling interests:
Non-cash straightline lease expense	(339		)	-			-			-		(339		)
Non-cash interest related to loss on derivatives	(1		)	-			-			-		(1		)
Prior year property tax adjustments, net	(202		)	-			-			-		(202		)
Discontinued operations:
Write-off of deferred financing fees	185			(185		)	-			-		-
	5,635			(185		)	-			-		5,450
Adjusted FFO	$	87,377		$	(5,689	)	$	518		$	3,353	$	85,559
FFO per diluted share	$	0.66										$	0.64
Adjusted FFO per diluted share	$	0.70										$	0.69
Basic weighted average shares outstanding	124,271											124,271
Shares associated with unvested restricted stock awards	235											235
Diluted weighted average shares outstanding (6)	124,506											124,506

(1)Actual represents the Company’s ownership results for the 30 hotels in which the Company has interests as of September 30, 2012.

(2)Discontinued Operations represents the final distribution of proceeds on a subordinate note held by the Company prior to the purchase of the Royal Palm Miami Beach, along with reimbursements for expenses related to the Royal Palm Miami Beach which was sold in April 2011 plus the ownership results for the Marriott Del Mar which was sold in August 2012, along with the Doubletree Guest Suites Minneapolis, Hilton Del Mar, Marriott Troy and an office building adjacent to the Marriott Troy, which were sold in September 2012.

(3)Acquisition: Hyatt Chicago Magnificent Mile represents prior ownership results for the hotel which was acquired by the Company on June 4, 2012, adjusted for the Company’s pro forma depreciation expense and ground lease payment classified as a capital lease for accounting purposes.

(4)Acquisition: Hilton Garden Inn Chicago Downtown/Magnificent Mile represents prior ownership results for the hotel which was acquired by the Company on July 19, 2012, adjusted for the Company’s pro forma depreciation expense.

(5)Pro Forma represents the Company’s ownership results and prior ownership results for the pro forma 30 hotel portfolio.

(6)Diluted weighted average shares outstanding includes the Series C convertible preferred stock on a “non-converted” basis.

APPENDIX Page 47    

Supplemental Financial Information – Unaudited
November 1, 2012

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

Q1 2011

	Three Months Ended March 31, 2011
(Unaudited and in thousands, except per share amounts)	Actual (1)			Discontinued Operations (2)			Acquisition: Doubletree Guest Suites Times Square (3)			Acquisition: BuyEfficient, LLC (4)			Acquisition: JW Marriott New Orleans (5)		Acquisition: Hilton San Diego Bayfront (6)			Equity Offering: Preferred Stock Series D (7)		Acquisition: Hyatt Chicago (8)			Acquisition: Hilton Garden Inn Chicago (9)			Pro Forma (10)
Net income	$	51,335		$	259		$	(458	)	$	(7	)	$	174	$	2,899		$	-	$	(2,766	)	$	(840	)	$	50,596
Operations held for investment:
Depreciation and amortization	24,707			-			261			37			262		4,868			-		1,950			1,109			33,194
Amortization of lease intangibles	930			-			140			-			-		-			-		-			-			1,070
Interest expense	15,133			-			138			-			287		2,046			-		351			-			17,955
Amortization of deferred financing fees	597			-			-			-			-		225			-		-			-			822
Non-cash interest related to discount on Senior Notes	261			-			-			-			-		-			-		-			-			261
Non-cash interest related to loss on derivatives	44			-			-			-			-		-			-		-			-			44
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest	-			-			-			-			-		(723		)	-		-			-			(723		)
Depreciation and amortization	-			-			-			-			-		(1,217		)	-		-			-			(1,217		)
Interest expense	-			-			-			-			-		(512		)	-		-			-			(512		)
Amortization of deferred financing fees	-			-			-			-			-		(56		)	-		-			-			(56		)
Unconsolidated joint ventures:
Depreciation and amortization	3			-			-			(3		)	-		-			-		-			-			-
Discontinued operations:
Depreciation and amortization	3,208			(3,208		)	-			-			-		-			-		-			-			-
Amortization of lease intangibles	7			(7		)																				-
Interest expense	1,890			(1,890		)	-			-			-		-			-		-			-			-
Amortization of deferred financing fees	19			(19		)	-			-			-		-			-		-			-			-
EBITDA	98,134			(4,865		)	81			27			723		7,530			-		(465		)	269			101,434
Operations held for investment:
Amortization of deferred stock compensation	544			-			-			2			-		-			-		-			-			546
Non-cash straightline lease expense	240			-			5			-			1		450			-		-			-			696
Capital lease obligation interest - cash ground rent	-			-			-			-			-		-			-		(351		)	-			(351		)
Gain on remeasurement of equity interests	(69,230		)	-			-			-			-		-			-		-			-			(69,230		)
Closing costs - completed acquisitions	2,739			-			-			-			-		-			-		-			-			2,739
Management fee term adjustment	-			-			-			-			-		-			-		-			50			50
Non-controlling interests:
Non-cash straightline lease expense	-			-			-			-			-		(114		)	-		-			-			(114		)
Unconsolidated joint ventures:
Amortization of deferred stock compensation	2			-			-			(2		)	-		-			-		-			-			-
	(65,705		)	-			5			-			1		336			-		(351		)	50			(65,664		)
Adjusted EBITDA	$	32,429		$	(4,865	)	$	86		$	27		$	724	$	7,866		$	-	$	(816	)	$	319		$	35,770

*Footnotes on following page

APPENDIX Page 48  

Supplemental Financial Information – Unaudited
November 1, 2012

Reconciliation of Pro Forma Net Income (Loss) to FFO and Adjusted FFO
Q1 2011

		Three Months Ended March 31, 2011
								Acquisition:			Acquisition:			Acquisition:		Acquisition:			Equity Offering:			Acquisition:			Acquisition:
					Discontinued			Doubletree Guest			BuyEfficient,			JW Marriott		Hilton San			Preferred Stock			Hyatt			Hilton Garden Inn			Pro
(Unaudited and in thousands, except per share amounts)		Actual (1)			Operations (2)			Suites Times Square (3)			LLC (4)			New Orleans (5)		Diego Bayfront (6)			Series D (7)			Chicago (8)			Chicago (9)			Forma (10)
Net income		$	51,335		$	259		$	(458	)	$	(7	)	$	174	$	2,899		$	-		$	(2,766	)	$	(840	)	$	50,596
Preferred stock dividends		(5,137		)	-			-			-			-		-			(2,300		)	-			-			(7,437		)
Operations held for investment:
Real estate depreciation and amortization		24,430			-			261			-			262		4,868			-			1,950			1,109			32,880
Amortization of lease intangibles		930			-			140			-			-		-			-			-			-			1,070
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest		-			-			-			-			-		(723		)	-			-			-			(723		)
Real estate depreciation and amortization	��	-			-			-			-			-		(1,217		)	-			-			-			(1,217		)
Discontinued operations:
Real estate depreciation and amortization		3,208			(3,208		)	-			-			-		-			-			-			-			-
Amortization of lease intangibles		7			(7		)	-			-			-		-			-			-			-			-
FFO		74,773			(2,956		)	(57		)	(7		)	436		5,827			(2,300		)	(816		)	269			75,169
Operations held for investment:
Non-cash straightline lease expense		240			-			5			-			1		450			-			-			-			696
Non-cash interest related to loss on derivatives, net		44			-			-			-			-		-			-			-			-			44
Gain on remeasurement of equity interests		(69,230		)	-			-			-			-		-			-			-			-			(69,230		)
Closing costs - completed acquisitions		2,739			-			-			-			-		-			-			-			-			2,739
Non-controlling interests:
Non-cash straightline lease expense		-			-			-			-			-		(114		)	-			-			-			(114		)
		(66,207		)	-			5			-			1		336			-			-			-			(65,865		)
Adjusted FFO		$	8,566		$	(2,956	)	$	(52	)	$	(7	)	$	437	$	6,163		$	(2,300	)	$	(816	)	$	269		$	9,304
FFO per diluted share		$	0.64																									$	0.64
Adjusted FFO per diluted share		$	0.07																									$	0.08
Basic weighted average shares outstanding		117,074																										117,074
Shares associated with unvested restricted stock awards		137																										137
Diluted weighted average shares outstanding (11)		117,211																										117,211

(1) Actual represents the Company’s ownership results for the 33 hotels in which the Company has interests as of March 31, 2011.  In accordance with the September 30, 2012 presentation, 27 hotels are classified as held for investment and six have been reclassified as discontinued operations.

(2) Discontinued Operations  represents the Company’s ownership results for the Royal Palm Miami Beach which was sold in April 2011, the Salt Lake City commercial laundry facility which was sold in July 2011, the Eugene Valley River Inn which was sold in October 2011, the Marriott Del Mar which was sold in August 2012,  along with the Doubletree Guest Suites Minneapolis, Hilton Del Mar, Marriott Troy and an office building adjacent to the Marriott Troy, which were sold in September 2012.

(3) Acquisition: Doubletree Guest Suites Times Square represents prior ownership results for the joint venture which was acquired by the Company on January 14, 2011, adjusted for the Company’s pro forma interest and depreciation expense along with non-cash straightline lease expense.

(4) Acquisition: BuyEfficient, LLC represents prior ownership results for the joint venture which was acquired by the Company on January 21, 2011, adjusted for the Company’s pro forma depreciation expense.

(5) Acquisition: JW Marriott New Orleans represents prior ownership results for the hotel which was acquired by the Company on February 15, 2011, adjusted for the Company’s pro forma interest and depreciation expense along with non-cash straightline lease expense.

(6) Acquisition: Hilton San Diego Bayfront represents prior ownership results for the hotel which was acquired by the Company on April 15, 2011, adjusted for the Company’s pro forma interest and depreciation expense plus non-cash straightline lease expense, along with its 25% non-controlling interest.

(7) Equity Offering: Preferred Stock Series D represents the dividends earned on the 4,600,000 8% cumulative redeemable preferred shares sold on April 6, 2011 .

(8) Acquisition: Hyatt Chicago Magnificent Mile represents prior ownership results for the hotel which was acquired by the Company on June 4, 2012, adjusted for the Company’s pro forma depreciation expense and ground lease payment classified as a capital lease for accounting purposes.

(9) Acquisition: Hilton Garden Inn Chicago Downtown/Magnificent Mile represents prior ownership results for the hotel which was acquired by the Company on July 19, 2012, adjusted for the Company’s pro forma depreciation expense and management fee term adjustment.

(10) Pro Forma represents the Company’s ownership results and prior ownership results for the pro forma 30 hotel portfolio, as well as the acquisition of BuyEfficient, LLC in January 2011 along with the effects of the Equity Offering completed in April 2011.

(11) Diluted weighted average shares outstanding includes the Series C convertible preferred stock on a “non-converted” basis.

APPENDIX Page 49  

Supplemental Financial Information - Unaudited
November 1, 2012

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

Q2 2011

	Three Months Ended June 30, 2011
							Acquisition:			Equity Offering:		Disposition:			Acquisition:			Acquisition:
				Discontinued			Hilton San			Preferred Stock		Royal Palm			Hyatt			Hilton Garden Inn		Pro
(Unaudited and in thousands, except per share amounts)	Actual (1)			Operations (2)			Diego Bayfront (3)			Series D (4)		Note Receivable (5)			Chicago (6)			Chicago (7)		Forma (8)
Net income	$	38,929		$	(30,134	)	$	87		$	-	$	(1,260	)	$	335		$	1,166	$	9,123
Operations held for investment:
Depreciation and amortization	31,044			-			917			-		-			1,950			1,109		35,020
Amortization of lease intangibles	992			-			-			-		-			-			-		992
Interest expense	17,377			-			274			-		-			351			-		18,002
Amortization of deferred financing fees	795			-			38			-		-			-			-		833
Non-cash interest related to discount on Senior Notes	261			-			-			-		-			-			-		261
Non-cash interest related to loss on derivatives	960			-			-			-		-			-			-		960
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest	(244		)	-			(16		)	-		-			-			-		(260		)
Depreciation and amortization	(1,184		)	-			(229		)	-		-			-			-		(1,413		)
Interest expense	(456		)	-			(69		)	-		-			-			-		(525		)
Amortization of deferred financing fees	(47		)	-			(10		)	-		-			-			-		(57		)
Non-cash interest related to loss on derivative	(28		)	-			-			-		-			-			-		(28		)
Discontinued operations:
Depreciation and amortization	1,873			(1,873		)	-			-		-			-			-		-
Amortization of lease intangibles	7			(7		)	-			-		-			-			-		-
Interest expense	1,900			(1,900		)	-			-		-			-			-		-
Amortization of deferred financing fees	20			(20		)	-			-		-			-			-		-
EBITDA	92,199			(33,934		)	992			-		(1,260		)	2,636			2,275		62,908
Operations held for investment:
Amortization of deferred stock compensation	929			-			-			-		-			-			-		929
Non-cash straightline lease expense	766			-			(70		)	-		-			-			-		696
Capital lease obligation interest - cash ground rent	-			-			-			-		-			(351		)	-		(351		)
Gain on sale of assets	(56		)	-			-			-		-			-			-		(56		)
Closing costs - completed acquisitions	633			-			-			-		-			-			-		633
Management fee term adjustment	-			-			-			-		-			-			110		110
Non-controlling interests:
Non-cash straightline lease expense	(129		)	-			15			-		-			-			-		(114		)
Discontinued operations:
Gain on sale of assets	(14,018		)	14,018			-			-		-			-			-		-
Impairment loss	1,495			(1,495		)	-			-		-			-			-		-
Gain on extinguishment of debt	(18,145		)	18,145			-			-		-			-			-		-
	(28,525		)	30,668			(55		)	-		-			(351		)	110		1,847
Adjusted EBITDA	$	63,674		$	(3,266	)	$	937		$	-	$	(1,260	)	$	2,285		$	2,385	$	64,755

*Footnotes on following page

APPENDIX Page 50  

Supplemental Financial Information – Unaudited
November 1, 2012

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

Q2 2011

	Three Months Ended June 30, 2011
							Acquisition:			Equity Offering:			Disposition:			Acquisition:		Acquisition:
				Discontinued			Hilton San			Preferred Stock			Royal Palm			Hyatt		Hilton Garden Inn		Pro
(Unaudited and in thousands, except per share amounts)	Actual (1)			Operations (2)			Diego Bayfront (3)			Series D (4)			Note Receivable (5)			Chicago (6)		Chicago (7)		Forma (8)
Net income	$	38,929		$	(30,134	)	$	87		$	-		$	(1,260	)	$	335	$	1,166	$	9,123
Preferred stock dividends	(7,310		)	-			-			(128		)	-			-		-		(7,438		)
Operations held for investment:
Real estate depreciation and amortization	30,744			-			917			-			-			1,950		1,109		34,720
Amortization of lease intangibles	992			-			-			-			-			-		-		992
Gain on sale of assets	(56		)	-			-			-			-			-		-		(56		)
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest	(244		)	-			(16		)	-			-			-		-		(260		)
Real estate depreciation and amortization	(1,184		)	-			(229		)	-			-			-		-		(1,413		)
Discontinued operations:
Real estate depreciation and amortization	1,873			(1,873		)	-			-			-			-		-		-
Amortization of lease intangibles	7			(7		)	-			-			-			-		-		-
Gain on sale of assets	(14,018		)	14,018			-			-			-			-		-		-
FFO	49,733			(17,996		)	759			(128		)	(1,260		)	2,285		2,275		35,668
Operations held for investment:
Non-cash straightline lease expense	766			-			(70		)	-			-			-		-		696
Non-cash interest related to loss on derivatives, net	960			-			-			-			-			-		-		960
Closing costs - completed acquisitions	633			-			-			-			-			-		-		633
Non-controlling interests:
Non-cash straightline lease expense	(129		)	-			15			-			-			-		-		(114		)
Non-cash interest related to loss on derivative	(28		)	-			-			-			-			-		-		(28		)
Discontinued operations:																				-
Impairment loss	1,495			(1,495		)	-			-			-			-		-		-
Gain on extinguishment of debt	(18,145		)	18,145			-			-			-			-		-		-
	(14,448		)	16,650			(55		)	-			-			-		-		2,147
Adjusted FFO	$	35,285		$	(1,346	)	$	704		$	(128	)	$	(1,260	)	$	2,285	$	2,275	$	37,815
FFO per diluted share	$	0.42																		$	0.30
Adjusted FFO per diluted share	$	0.30																		$	0.32
Basic weighted average shares outstanding	117,227																			117,227
Shares associated with unvested restricted stock awards	87																			87
Diluted weighted average shares outstanding (9)	117,314																			117,314

(1)	Actual represents the Company’s ownership results for the 33 hotels in which the Company has interests as of June 30, 2011. In accordance with the September 30, 2012 presentation, 28 hotels are classified as held for investment and five have been reclassified as discontinued operations.
(2)	Discontinued Operations represents the Company’s ownership results for the Royal Palm Miami Beach which was sold in April 2011, the Salt Lake City commercial laundry facility which was sold in July 2011, the Eugene Valley River Inn which was sold in October 2011, the Marriott Del Mar which was sold in August 2012, along with the Doubletree Guest Suites Minneapolis, Hilton Del Mar, Marriott Troy and an office building adjacent to the Marriott Troy, which were sold in September 2012.
(3)	Acquisition: Hilton San Diego Bayfront represents prior ownership results for the hotel which was acquired by the Company on April 15, 2011, adjusted for the Company’s pro forma interest and depreciation expense plus non-cash straightline lease expense, along with its 25% non-controlling interest.
(4)	Equity Offering: Preferred Stock Series D represents the dividends earned on the 4,600,000 8% cumulative redeemable preferred shares sold on April 6, 2011 .
(5)	Disposition: Royal Palm Note Receivable represents interest income on the $90.0 million mortgage-secured purchase money loan which was sold in October 2011.
(6)	Acquisition: Hyatt Chicago Magnificent Mile represents prior ownership results for the hotel which was acquired by the Company on June 4, 2012, adjusted for the Company’s pro forma depreciation expense and ground lease payment classified as a capital lease for accounting purposes.
(7)	Acquisition: Hilton Garden Inn Chicago Downtown/Magnificent Mile represents prior ownership results for the hotel which was acquired by the Company on July 19, 2012, adjusted for the Company’s pro forma depreciation expense and management fee term adjustment.
(8)	Pro Forma represents the Company’s ownership results and prior ownership results for the pro forma 30 hotel portfolio, as well as the effects of the Equity Offering completed in April 2011 and the disposition of the Royal Palm Note Receivable sold in October 2011.
(9)	Diluted weighted average shares outstanding includes the Series C convertible preferred stock on a “non-converted” basis.

APPENDIX Page 51  

Supplemental Financial Information – Unaudited
November 1, 2012

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

Q3 2011

	Three Months Ended September 30, 2011
							Disposition:			Acquisition:			Acquisition:
				Discontinued			Royal Palm			Hyatt			Hilton Garden Inn		Pro
(Unaudited and in thousands, except per share amounts)	Actual (1)			Operations (2)			Note Receivable (3)			Chicago (4)			Chicago (5)		Forma (6)
Net loss	$	(16,553	)	$	(797	)	$	(1,380	)	$	283		$	990	$	(17,457	)
Operations held for investment:
Depreciation and amortization	32,490			-			-			1,950			1,110		35,550
Amortization of lease intangibles	1,028			-			-			-			-		1,028
Interest expense	17,841			-			-			351			-		18,192
Amortization of deferred financing fees	823			-			-			-			-		823
Non-cash interest related to discount on Senior Notes	270			-			-			-			-		270
Non-cash interest related to loss on derivatives	1,087			-			-			-			-		1,087
Non-controlling interests:
Loss from consolidated joint venture attributable to non-controlling interest	31			-			-			-			-		31
Depreciation and amortization	(1,414		)	-			-			-			-		(1,414		)
Interest expense	(549		)	-			-			-			-		(549		)
Amortization of deferred financing fees	(56		)	-			-			-			-		(56		)
Non-cash interest related to loss on derivative	(4		)	-			-			-			-		(4		)
Discontinued operations:
Depreciation and amortization	1,686			(1,686		)	-			-			-		-
Amortization of lease intangibles	7			(7		)	-			-			-		-
Interest expense	1,912			(1,912		)	-			-			-		-
Amortization of deferred financing fees	20			(20		)	-			-			-		-
EBITDA	38,619			(4,422		)	(1,380		)	2,584			2,100		37,501
Operations held for investment:
Amortization of deferred stock compensation	697			-			-			-			-		697
Non-cash straightline lease expense	696			-			-			-			-		696
Capital lease obligation interest - cash ground rent	-			-			-			(351		)	-		(351		)
Gain on sale of assets	(17		)	-			-			-			-		(17		)
Impairment loss	10,862			-			-			-			-		10,862
Lawsuit settlement costs	1,620			-			-			-			-		1,620
Management fee term adjustment	-			-			-			-			110		110
Non-controlling interests:
Non-cash straightline lease expense	(114		)	-			-			-			-		(114		)
Discontinued operations:
Loss on sale of assets	52			(52		)	-			-			-		-
	13,796			(52		)	-			(351		)	110		13,503
Adjusted EBITDA	$	52,415		$	(4,474	)	$	(1,380	)	$	2,233		$	2,210	$	51,004

*Footnotes on following page

APPENDIX Page 52  

Supplemental Financial Information – Unaudited
November 1, 2012

Reconciliation of Pro Forma Net Income (Loss) to FFO and Adjusted FFO
Q3 2011

	Three Months Ended September 30, 2011
							Disposition:			Acquisition:		Acquisition:
				Discontinued			Royal Palm			Hyatt		Hilton Garden Inn		Pro
(Unaudited and in thousands, except per share amounts)	Actual (1)			Operations (2)			Note Receivable (3)			Chicago (4)		Chicago (5)		Forma (6)
Net loss	$	(16,553	)	$	(797	)	$	(1,380	)	$	283	$	990	$	(17,457	)
Preferred stock dividends	(7,437		)	-			-			-		-		(7,437		)
Operations held for investment:
Real estate depreciation and amortization	32,196			-			-			1,950		1,110		35,256
Amortization of lease intangibles	1,028			-			-			-		-		1,028
Gain on sale of assets	(17		)	-			-			-		-		(17		)
Non-controlling interests:
Loss from consolidated joint venture attributable to non-controlling interest	31			-			-			-		-		31
Real estate depreciation and amortization	(1,414		)	-			-			-		-		(1,414		)
Discontinued operations:
Real estate depreciation and amortization	1,686			(1,686		)	-			-		-		-
Amortization of lease intangibles	7			(7		)	-			-		-		-
Loss on sale of assets	52			(52		)	-			-		-		-
FFO	9,579			(2,542		)	(1,380		)	2,233		2,100		9,990
Operations held for investment:
Non-cash straightline lease expense	696			-			-			-		-		696
Non-cash interest related to loss on derivatives, net	1,087			-			-			-		-		1,087
Impairment loss	10,862			-			-			-		-		10,862
Lawsuit settlement costs	1,620			-			-			-		-		1,620
Non-controlling interests:
Non-cash straightline lease expense	(114		)	-			-			-		-		(114		)
Non-cash interest related to loss on derivative	(4		)	-			-			-		-		(4		)
	14,147			-			-			-		-		14,147
Adjusted FFO	$	23,726		$	(2,542	)	$	(1,380	)	$	2,233	$	2,100	$	24,137
FFO per diluted share	$	0.08												$	0.09
Adjusted FFO per diluted share	$	0.20												$	0.21
Basic weighted average shares outstanding	117,254													117,254
Shares associated with unvested restricted stock awards	-													-
Diluted weighted average shares outstanding (7)	117,254													117,254

(1) Actual represents the Company’s ownership results for the 33 hotels in which the Company has interests as of September 30, 2011. In accordance with the September 30, 2012 presentation, 28 hotels are classified as held for investment and five have been reclassified as discontinued operations.

(2) Discontinued Operations represents the Company’s ownership results for the Salt Lake City commercial laundry facility which was sold in July 2011, the Eugene Valley River Inn which was sold in October 2011, the Marriott Del Mar which was sold in August 2012, along with the Doubletree Guest Suites Minneapolis, Hilton Del Mar, Marriott Troy and an office building adjacent to the Marriott Troy, which were sold in September 2012.

(3) Disposition: Royal Palm Note Receivable represents interest income on the $90.0 million mortgage-secured purchase money loan which was sold in October 2011.

(4) Acquisition: Hyatt Chicago Magnificent Mile represents prior ownership results for the hotel which was acquired by the Company on June 4, 2012, adjusted for the Company’s pro forma depreciation expense and ground lease payment classified as a capital lease for accounting purposes.

(5) Acquisition: Hilton Garden Inn Chicago Downtown/Magnificent Mile represents prior ownership results for the hotel which was acquired by the Company on July 19, 2012, adjusted for the Company’s pro forma depreciation expense and management fee term adjustment.

(6) Pro Forma represents the Company’s ownership results and prior ownership results for the pro forma 30 hotel portfolio, as well as the effects of the disposition of the Royal Palm Note Receivable sold in October 2011.

(7) Diluted weighted average shares outstanding includes the Series C convertible preferred stock on a “non-converted” basis.

APPENDIX Page 53  

Supplemental Financial Information – Unaudited
November 1, 2012

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

Q4 2011

	Three Months Ended December 31, 2011
							Disposition:			Acquisition:			Acquisition:
				Discontinued			Royal Palm			Hyatt			Hilton Garden Inn		Pro
(Unaudited and in thousands, except per share amounts)	Actual (1)			Operations (2)			Note Receivable (3)			Chicago (4)			Chicago (5)		Forma (6)
Net income	$	7,588		$	(923	)	$	(90	)	$	(259	)	$	723	$	7,039
Operations held for investment:
Depreciation and amortization	33,180			-			-			1,950			1,109		36,239
Amortization of lease intangibles	1,029			-			-			-			-		1,029
Interest expense	18,669			-			-			351			-		19,020
Amortization of deferred financing fees	951			-			-			-			-		951
Write-off of deferred financing fees	21			-			-			-			-		21
Non-cash interest related to discount on Senior Notes	270			-			-			-			-		270
Non-cash interest related to loss on derivatives	564			-			-			-			-		564
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest	(99		)	-			-			-			-		(99		)
Depreciation and amortization	(1,416		)	-			-			-			-		(1,416		)
Interest expense	(557		)	-			-			-			-		(557		)
Amortization of deferred financing fees	(57		)	-			-			-			-		(57		)
Non-cash interest related to loss on derivative	1			-			-			-			-		1
Discontinued operations:
Depreciation and amortization	1,708			(1,708		)	-			-			-		-
Amortization of lease intangibles	7			(7		)	-			-			-		-
Interest expense	1,788			(1,788		)	-			-			-		-
Amortization of deferred financing fees	17			(17		)	-			-			-		-
Write-off of deferred financing fees	42			(42		)	-			-			-		-
EBITDA	63,706			(4,485		)	(90		)	2,042			1,832		63,005
Operations held for investment:
Amortization of deferred stock compensation	575			-			-			-			-		575
Non-cash straightline lease expense	696			-			-			-			-		696
Capital lease obligation interest - cash ground rent	-			-			-			(351		)	-		(351		)
Gain on sale of assets	(10		)	-			-			-			-		(10		)
Closing costs - completed acquisitions	31			-			-			-			-		31
Management fee term adjustment	-			-			-			-			100		100
Non-controlling interests:
Non-cash straightline lease expense	(111		)	-			-			-			-		(111		)
Discontinued operations:
Gain on sale of assets	(946		)	946			-			-			-		-
	235			946			-			(351		)	100		930
Adjusted EBITDA	$	63,941		$	(3,539	)	$	(90	)	$	1,691		$	1,932	$	63,935

*Footnotes on following page

APPENDIX Page 54

Supplemental Financial Information – Unaudited November 1, 2012

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

Q4 2011

	Three Months Ended December 31, 2011
							Disposition:			Acquisition:			Acquisition:
				Discontinued			Royal Palm			Hyatt			Hilton Garden Inn		Pro
(Unaudited and in thousands, except per share amounts)	Actual (1)			Operations (2)			Note Receivable (3)			Chicago (4)			Chicago (5)		Forma (6)
Net income	$	7,588		$	(923	)	$	(90	)	$	(259	)	$	723	$	7,039
Preferred stock dividends	(7,437		)	-			-			-			-		(7,437		)
Operations held for investment:
Real estate depreciation and amortization	32,882			-			-			1,950			1,109		35,941
Amortization of lease intangibles	1,029			-			-			-			-		1,029
Gain on sale of assets	(10		)	-			-			-			-		(10		)
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest	(99		)	-			-			-			-		(99		)
Real estate depreciation and amortization	(1,416		)	-			-			-			-		(1,416		)
Discontinued operations:
Real estate depreciation and amortization	1,708			(1,708		)	-			-			-		-
Amortization of lease intangibles	7			(7		)	-			-			-		-
Gain on sale of assets	(946		)	946			-			-			-		-
FFO	33,306			(1,692		)	(90		)	1,691			1,832		35,047
Operations held for investment:
Write-off of deferred financing fees	21			-			-			-			-		21
Non-cash straightline lease expense	696			-			-			-			-		696
Non-cash interest related to loss on derivatives	564			-			-			-			-		564
Closing costs - completed acquisitions	31			-			-			-			-		31
Non-controlling interests:
Non-cash straightline lease expense	(111		)	-			-			-			-		(111		)
Non-cash interest related to loss on derivative	1			-			-			-			-		1
Discontinued operations:
Write-off of deferred financing fees	42			(42		)	-			-			-		-
	1,244			(42		)	-			-			-		1,202
Adjusted FFO	$	34,550		$	(1,734	)	$	(90	)	$	1,691		$	1,832	$	36,249
FFO per diluted share	$	0.28													$	0.30
Adjusted FFO per diluted share	$	0.29													$	0.31
Basic weighted average shares outstanding	117,265														117,265
Shares associated with unvested restricted stock awards	-														-
Diluted weighted average shares outstanding (7)	117,265														117,265

(1)Actual represents the Company’s ownership results for the 32 hotels in which the Company has interests as of December 31, 2011.  In accordance with the September 30, 2012 presentation, 28 hotels are classified as held for investment and four have been reclassified as discontinued operations.

(2)Discontinued Operations  represents the Company’s ownership results for the Eugene Valley River Inn which was sold in October 2011, the Marriott Del Mar which was sold in August 2012, along with the  Doubletree Guest Suites Minneapolis, Hilton Del Mar, Marriott Troy and an office building adjacent to the Marriott Troy, which were sold in September 2012.

(3)Disposition: Royal Palm Note Receivable represents interest income on the $90.0 million mortgage-secured purchase money loan which was sold in October 2011.

(4)Acquisition: Hyatt Chicago Magnificent Mile represents prior ownership results for the hotel which was acquired by the Company on June 4, 2012, adjusted for the Company’s pro forma depreciation expense and ground lease payment classified as a capital lease for accounting purposes.

(5)Acquisition: Hilton Garden Inn Chicago Downtown/Magnificent Mile represents prior ownership results for the hotel which was acquired by the Company on July 19, 2012, adjusted for the Company’s pro forma depreciation expense and management fee term adjustment.

(6)Pro Forma represents the Company’s ownership results and prior ownership results for the pro forma 30 hotel portfolio, as well as the effects of the disposition of the Royal Palm Note Receivable sold in October 2011.

(7)Diluted weighted average shares outstanding includes the Series C convertible preferred stock on a “non-converted” basis.

APPENDIX Page 55  

Supplemental Financial Information – Unaudited November 1, 2012

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

FY 2011

	Year Ended December 31, 2011
							Acquisition:			Acquisition:			Acquisition:		Acquisition:			Equity Offering:					Acquisition:			Acquisition:
				Discontinued			Doubletree Guest			BuyEfficient,			JW Marriott		Hilton San			Preferred Stock		Royal Palm			Hyatt			Hilton Garden Inn		Pro
(Unaudited and in thousands, except per share amounts)	Actual (1)			Operations (2)			Suites Time Square (3)			LLC (4)			New Orleans (5)		Diego Bayfront (6)			Series D (7)		Note Receivable (8)			Chicago (9)			Chicago (10)		Forma (11)
Net income	$	81,299		$	(31,595	)	$	(458	)	$	(7	)	$	174	$	2,986		$	-	$	(2,730	)	$	(2,407	)	$	2,039	$	49,301
Operations held for investment:
Depreciation and amortization	121,421			-			261			37			262		5,785			-		-			7,800			4,437		140,003
Amortization of lease intangibles	3,979			-			140			-			-		-			-		-			-			-		4,119
Interest expense	69,020			-			138			-			287		2,320			-		-			1,404			-		73,169
Amortization of deferred financing fees	3,166			-			-			-			-		263			-		-			-			-		3,429
Write-off of deferred financing fees	21			-			-			-			-		-			-		-			-			-		21
Non-cash interest related to discount on Senior Notes	1,062			-			-			-			-		-			-		-			-			-		1,062
Non-cash interest related to loss on derivatives	2,655			-			-			-			-		-			-		-			-			-		2,655
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest	(312		)	-			-			-			-		(739		)	-		-			-			-		(1,051		)
Depreciation and amortization	(4,014		)	-			-			-			-		(1,446		)	-		-			-			-		(5,460		)
Interest expense	(1,562		)	-			-			-			-		(581		)	-		-			-			-		(2,143		)
Amortization of deferred financing fees	(160		)	-			-			-			-		(66		)	-		-			-			-		(226		)
Non-cash interest related to loss on derivative	(31		)	-			-			-			-		-			-		-			-			-		(31		)
Unconsolidated joint ventures:
Depreciation and amortization	3			-			-			(3		)	-		-			-		-			-			-		-
Discontinued operations:
Depreciation and amortization	8,475			(8,475		)	-			-			-		-			-		-			-			-		-
Amortization of lease intangibles	28			(28		)	-			-			-		-			-		-			-			-		-
Interest expense	7,490			(7,490		)	-			-			-		-			-		-			-			-		-
Amortization of deferred financing fees	76			(76		)	-			-			-		-			-		-			-			-		-
Write-off of deferred financing fees	42			(42		)	-			-			-		-			-		-			-			-		-
EBITDA	292,658			(47,706		)	81			27			723		8,522			-		(2,730		)	6,797			6,476		264,848
Operations held for investment:
Amortization of deferred stock compensation	2,745			-			-			2			-		-			-		-			-			-		2,747
Non-cash straightline lease expense	2,398			-			5			-			1		380			-		-			-			-		2,784
Capital lease obligation interest - cash ground rent	-			-			-			-			-		-			-		-			(1,404		)	-		(1,404		)
Gain on sale of assets	(83		)	-			-			-			-		-			-		-			-			-		(83		)
Gain on remeasurement of equity interests	(69,230		)	-			-			-			-		-			-		-			-			-		(69,230		)
Impairment loss	10,862			-			-			-			-		-			-		-			-			-		10,862
Lawsuit settlement costs	1,620			-			-			-			-		-			-		-			-			-		1,620
Closing costs - completed acquisitions	3,403			-			-			-			-		-			-		-			-			-		3,403
Management fee term adjustment	-			-			-			-			-		-			-		-			-			370		370
Non-controlling interests:
Non-cash straightline lease expense	(354		)	-			-			-			-		(99		)	-		-			-			-		(453		)
Unconsolidated joint ventures:
Amortization of deferred stock compensation	2			-			-			(2		)	-		-			-		-			-			-		-
Discontinued operations:
Gain on sale of assets	(14,912		)	14,912			-			-			-		-			-		-			-			-		-
Impairment loss	1,495			(1,495		)	-			-			-		-			-		-			-			-		-
Gain on extinguishment of debt	(18,145		)	18,145			-			-			-		-			-		-			-			-		-
	(80,199		)	31,562			5			-			1		281			-		-			(1,404		)	370		(49,384		)
Adjusted EBITDA	$	212,459		$	(16,144	)	$	86		$	27		$	724	$	8,803		$	-	$	(2,730	)	$	5,393		$	6,846	$	215,464

*Footnotes on following page

APPENDIX Page 56  

Supplemental Financial Information – Unaudited November 1, 2012

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

FY 2011

	Year Ended December 31, 2011
							Acquisition:			Acquisition:			Acquisition:		Acquisition:			Equity Offering:			Disposition:			Acquisition:			Acquisition:
				Discontinued			Doubletree Guest			BuyEfficient,			JW Marriott		Hilton San			Preferred Stock			Royal Palm			Hyatt			Hilton Garden Inn		Pro
(Unaudited and in thousands, except per share amounts)	Actual (1)			Operations (2)			Suites Time Square (3)			LLC (4)			New Orleans (5)		Diego Bayfront (6)			Series D (7)			Note Receivable (8)			Chicago (9)			Chicago (10)		Forma (11)
Net income	$	81,299		$	(31,595	)	$	(458	)	$	(7	)	$	174	$	2,986		$	-		$	(2,730	)	$	(2,407	)	$	2,039	$	49,301
Preferred stock dividends	(27,321		)	-			-			-			-		-			(2,428		)	-			-			-		(29,749		)
Operations held for investment:
Real estate depreciation and amortization	120,252			-			261			-			262		5,785			-			-			7,800			4,437		138,797
Amortization of lease intangibles	3,979			-			140			-			-		-			-			-			-			-		4,119
Gain on sale of assets	(83		)	-			-			-			-		-			-			-			-			-		(83		)
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest	(312		)	-			-			-			-		(739		)	-			-			-			-		(1,051		)
Real estate depreciation and amortization	(4,014		)	-			-			-			-		(1,446		)	-			-			-			-		(5,460		)
Discontinued operations:
Real estate depreciation and amortization	8,475			(8,475		)	-			-			-		-			-			-			-			-		-
Amortization of lease intangibles	28			(28		)	-			-			-		-			-			-			-			-		-
Gain on sale of assets	(14,912		)	14,912			-			-			-		-			-			-			-			-		-
FFO	167,391			(25,186		)	(57		)	(7		)	436		6,586			(2,428		)	(2,730		)	5,393			6,476		155,874
Operations held for investment:
Write-off of deferred financing fees	21			-			-			-			-		-			-			-			-			-		21
Non-cash straightline lease expense	2,398			-			5			-			1		380			-			-			-			-		2,784
Non-cash interest related to loss on derivatives	2,655			-			-			-			-		-			-			-			-			-		2,655
Gain on remeasurement of equity interests	(69,230		)	-			-			-			-		-			-			-			-			-		(69,230		)
Closing costs - completed acquisitions	3,403			-			-			-			-		-			-			-			-			-		3,403
Impairment loss	10,862			-			-			-			-		-			-			-			-			-		10,862
Lawsuit settlement costs	1,620			-			-			-			-		-			-			-			-			-		1,620
Non-controlling interests:
Non-cash straightline lease expense	(354		)	-			-			-			-		(99		)	-			-			-			-		(453		)
Non-cash interest related to loss on derivative	(31		)	-			-			-			-		-			-			-			-			-		(31		)
Discontinued operations:
Write-off of deferred financing fees	42			(42		)	-			-			-		-			-			-			-			-		-
Impairment loss	1,495			(1,495		)	-			-			-		-			-			-			-			-		-
Gain on extinguishment of debt	(18,145		)	18,145			-			-			-		-			-			-			-			-		-
	(65,264		)	16,608			5			-			1		281			-			-			-			-		(48,369		)
Adjusted FFO	$	102,127		$	(8,578	)	$	(52	)	$	(7	)	$	437	$	6,867		$	(2,428	)	$	(2,730	)	$	5,393		$	6,476	$	107,505
FFO per diluted share	$	1.43																											$	1.33
Adjusted FFO per diluted share	$	0.87																											$	0.92
Basic weighted average shares outstanding	117,206																												117,206
Shares associated with unvested restricted stock awards	84																												84
Diluted weighted average shares outstanding (12)	117,290																												117,290

(1)	Actual represents the Company’s ownership results for the 32 hotels in which the Company has interests as of December 31, 2011. In accordance with the September 30, 2012 presentation, 28 hotels are classified as held for investment and four have been reclassified as discontinued operations.
(2)	Discontinued Operations represents the Company’s ownership results for the Royal Palm Miami Beach which was sold in April 2011, the Salt Lake City commercial laundry facility which was sold in July 2011, the Eugene Valley River Inn which was sold in October 2011, the Marriott Del Mar which was sold in August 2012, along with the Doubletree Guest Suites Minneapolis, Hilton Del Mar, Marriott Troy and an office building adjacent to the Marriott Troy, which were sold in September 2012.
(3)	Acquisition: Doubletree Guest Suites Times Square represents prior ownership results for the joint venture which was acquired by the Company on January 14, 2011, adjusted for the Company’s pro forma interest and depreciation expense along with non-cash straightline lease expense.
(4)	Acquisition: BuyEfficient, LLC represents prior ownership results for the joint venture which was acquired by the Company on January 21, 2011, adjusted for the Company’s pro forma depreciation expense.
(5)	Acquisition: JW Marriott New Orleans represents prior ownership results for the hotel which was acquired by the Company on February 15, 2011, adjusted for the Company’s pro forma interest and depreciation expense along with non-cash straightline lease expense.
(6)	Acquisition: Hilton San Diego Bayfront represents prior ownership results for the hotel which was acquired by the Company on April 15, 2011, adjusted for the Company’s pro forma interest and depreciation expense plus non-cash straightline lease expense, along with its 25% non-controlling interest.
(7)	Equity Offering: Preferred Stock Series D represents the dividends paid on the 4,600,000 8% cumulative redeemable preferred shares issued on April 6, 2011 .
(8)	Disposition: Royal Palm Note Receivable represents interest income on the $90.0 million mortgage-secured purchase money loan which was sold in October 2011.
(9)	Acquisition: Hyatt Chicago Magnificent Mile represents prior ownership results for the hotel which was acquired by the Company on June 4, 2012, adjusted for the Company’s pro forma depreciation expense and ground lease payment classified as a capital lease for accounting purposes.
(10)	Acquisition: Hilton Garden Inn Chicago Downtown/Magnificent Mile represents prior ownership results for the hotel which was acquired by the Company on July 19, 2012, adjusted for the Company’s pro forma depreciation expense and management fee term adjustment.
(11)	Pro Forma represents the Company’s ownership results and prior ownership results for the pro forma 30 hotel portfolio, as well as the acquisition of BuyEfficient, LLC in January 2011 along with the effects of the Equity Offering completed in April 2011 and the disposition of the Royal Palm Note Receivable sold in October 2011.
(12)	Diluted weighted average shares outstanding includes the Series C convertible preferred stock on a “non-converted” basis.

APPENDIX Page 57  

Supplemental Financial Information – Unaudited November 1, 2012

Property-Level EBITDA Reconciliation

Q1 2012

	Hotels sorted by number of rooms	For the Three Months Ended March 31, 2012
							Plus:		Plus:		Plus:		Equals:			Hotel
	(In thousands)	Total		Net Income /			Other						Hotel			EBITDA
		Revenues		(Loss)			Adjustments (2)		Depreciation		Interest Expense		EBITDA			Margins
1	Hilton San Diego Bayfront (1)	$	30,620	$	2,242		$	450	$	5,674	$	2,510	$	10,876		35.5	%
2	Renaissance Washington DC	13,701		(1,374		)	-		1,926		1,960		2,512			18.3	%
3	Renaissance Orlando at SeaWorld ®	15,650		2,454			-		1,969		1,146		5,569			35.6	%
4	Kahler Grand (3)	5,504		498			-		817		375		1,690			30.7	%
5	Renaissance Harborplace (3)	7,047		(2,588		)	-		2,028		1,296		736			10.4	%
6	Renaissance Los Angeles Airport	5,677		378			-		688		-		1,066			18.8	%
7	JW Marriott New Orleans	8,312		536			1		1,798		585		2,920			35.1	%
8	Hilton North Houston (3)	5,919		144			-		945		478		1,567			26.5	%
9	Marriott Quincy	4,830		(539		)	-		1,228		-		689			14.3	%
10	Doubletree Guest Suites Times Square (1)	11,949		(3,168		)	1,003		1,983		1,956		1,774			14.8	%
11	Hilton Times Square	10,254		(2,373		)	270		2,157		1,243		1,297			12.6	%
12	Fairmont Newport Beach	6,002		(440		)	-		1,353		-		913			15.2	%
13	Hyatt Chicago Magnificent Mile	3,813		(2,593		)	-		1,950		-		(643		)	-16.9	%
14	Marriott Boston Long Wharf	8,171		(3,073		)	-		2,153		2,486		1,566			19.2	%
15	Hyatt Regency Newport Beach	6,619		242			-		656		-		898			13.6	%
16	Marriott Tysons Corner	4,708		(46		)	-		812		606		1,372			29.1	%
17	Marriott Houston (3)	3,950		100			-		568		311		979			24.8	%
18	Renaissance Long Beach	4,724		139			-		617		411		1,167			24.7	%
19	Embassy Suites Chicago	3,706		(1,426		)	-		879		1,047		500			13.5	%
20	Hilton Garden Inn Chicago Downtown/Magnificent Mile	3,141		(694		)	-		1,109		-		415			13.2	%
21	Renaissance Westchester	4,002		(896		)	394		386		-		(116		)	-2.9	%
22	Embassy Suites La Jolla	4,448		(224		)	-		903		1,149		1,828			41.1	%
23	Marriott Philadelphia	3,947		(208		)	-		475		369		636			16.1	%
24	Kahler Inn & Suites (3)	2,065		522			-		349		-		871			42.2	%
25	Marriott Portland	2,775		646			-		294		-		940			33.9	%
26	Sheraton Cerritos	2,933		261			-		427		-		688			23.5	%
27	Marriott Rochester (3)	2,816		249			-		562		-		811			28.8	%
28	Marriott Park City	4,286		1,288			-		350		204		1,842			43.0	%
29	Courtyard by Marriott Los Angeles	2,621		523			-		306		-		829			31.6	%
30	Residence Inn by Marriott Rochester	902		250			-		125		-		375			41.6	%
	Comparable Portfolio (4)	195,092		(9,170		)	2,118		35,487		18,132		46,567			23.9	%
	Prior Ownership Results (5)
	Hyatt Chicago Magnificent Mile	3,813		(2,593		)	-		1,950		-		(643		)	-16.9	%
	Hilton Garden Inn Chicago Downtown/Magnificent Mile	3,141		(694		)	-		1,109		-		415			13.2	%
	Actual Portfolio	$	188,138	$	(5,883	)	$	2,118	$	32,428	$	18,132	$	46,795		24.9	%
	*Footnotes on page 60.

APPENDIX Page 58  

Supplemental Financial Information – Unaudited November 1, 2012

Property-Level EBITDA Reconciliation

Q1 2011

	Hotels sorted by number of rooms	For the Three Months Ended March 31, 2011
							Plus:		Plus:		Plus:		Equals:			Hotel
		Total		Net Income /			Other						Hotel			EBITDA
		Revenues		(Loss)			Adjustments(6)		Depreciation		Interest Expense		EBITDA			Margins
1	Hilton San Diego Bayfront (1)	$	29,876	$	2,899		$	450	$	4,868	$	2,271	$	10,488		35.1	%
2	Renaissance Washington DC	16,203		741			-		1,841		1,987		4,569			28.2	%
3	Renaissance Orlando at SeaWorld ®	15,085		2,406			-		1,838		1,159		5,403			35.8	%
4	Kahler Grand	5,493		288			-		738		380		1,406			25.6	%
5	Renaissance Harborplace	7,539		(2,389		)	-		2,003		1,370		984			13.1	%
6	Renaissance Los Angeles Airport	5,293		44			-		709		-		753			14.2	%
7	JW Marriott New Orleans	7,229		626			1		1,148		573		2,348			32.5	%
8	Hilton North Houston	5,318		(323		)	-		816		479		972			18.3	%
9	Marriott Quincy	4,075		(857		)	-		1,105		-		248			6.1	%
10	Doubletree Guest Suites Times Square (1)	11,448		(2,582		)	1,045		2,039		1,023		1,525			13.3	%
11	Hilton Times Square	9,404		(2,578		)	352		2,333		1,238		1,345			14.3	%
12	Fairmont Newport Beach	6,054		(560		)	-		1,378		-		818			13.5	%
13	Hyatt Chicago Magnificent Mile	3,322		(2,766		)	-		1,950		-		(816		)	-24.6	%
14	Marriott Boston Long Wharf	6,522		(3,624		)	-		1,960		2,459		795			12.2	%
15	Hyatt Regency Newport Beach	6,235		367			-		680		-		1,047			16.8	%
16	Marriott Tysons Corner	4,325		(240		)	-		687		615		1,062			24.6	%
17	Marriott Houston	2,905		(479		)	-		424		315		260			9.0	%
18	Renaissance Long Beach	4,849		275			-		600		416		1,291			26.6	%
19	Embassy Suites Chicago (3)	3,431		(2,005		)	-		818		1,053		(134		)	-3.9	%
20	Hilton Garden Inn Chicago Downtown/Magnificent Mile	2,710		(840		)	-		1,109		-		269			9.9	%
21	Renaissance Westchester	3,406		(367		)	-		294		-		(73		)	-2.1	%
22	Embassy Suites La Jolla	4,194		(496		)	-		954		1,157		1,615			38.5	%
23	Marriott Philadelphia	3,584		(335		)	-		448		374		487			13.6	%
24	Kahler Inn & Suites	1,793		456			-		228		-		684			38.1	%
25	Marriott Portland	2,411		342			-		282		-		624			25.9	%
26	Sheraton Cerritos	2,100		(142		)	-		375		-		233			11.1	%
27	Marriott Rochester	2,434		71			-		484		-		555			22.8	%
28	Marriott Park City	4,485		1,408			-		293		207		1,908			42.5	%
29	Courtyard by Marriott Los Angeles	2,031		329			-		174		-		503			24.8	%
30	Residence Inn by Marriott Rochester	964		283			-		139		-		422			43.8	%
	Comparable Portfolio (7)	184,718		(10,048		)	1,848		32,715		17,076		41,591			22.5	%
	Prior Ownership Results (5)
	Doubletree Guest Suites Times Square (1)	1,560		(458		)	145		261		138		86			5.5	%
	JW Marriott New Orleans	3,277		174			1		262		287		724			22.1	%
	Hilton San Diego Bayfront (1)	29,875		2,899			450		4,868		2,271		10,488			35.1	%
	Hyatt Chicago Magnificent Mile	3,322		(2,766		)	-		1,950		-		(816		)	-24.6	%
	Hilton Garden Inn Chicago Downtown/Magnificent Mile	2,710		(840		)	-		1,109		-		269			9.9	%
	Actual Portfolio	$	143,974	$	(9,057	)	$	1,252	$	24,265	$	14,380	$	30,840		21.4	%
	*Footnotes on page 60.

APPENDIX Page 59  

Supplemental Financial Information – Unaudited November 1, 2012

Property-Level EBITDA Reconciliation

(1)	Includes 100% of the operating results for both the Doubletree Guest Suites Times Square and the Hilton San Diego Bayfront.
(2)	Other Adjustments for the three months ended March 31, 2012 include: a total of $1.0 million in amortization of lease intangibles at the Doubletree Guest Suites Times Square, Hilton Times Square and JW Marriott New Orleans; a total of $0.7 million in non-cash straightline lease expense at the Doubletree Guest Suites Times Square, Hilton San Diego Bayfront, Hilton Times Square and JW Marriott New Orleans; and $0.4 million in management transition costs at the Renaissance Westchester.
(3)	Hotel EBITDA for the first quarter of 2012 is impacted by a total of $0.3 million in property tax credits received at the following hotels: Hilton North Houston $56,000; Kahler Grand $44,000; Kahler Inn & Suites $15,000; Marriott Houston $43,000; Marriott Rochester $10,000; and Renaissance Harborplace $106,000. Hotel EBITDA for the first quarter of 2011 is impacted by a $315,000 property tax assessment received at the Embassy Suites Chicago.
(4)	Comparable Portfolio for the three months ended March 31, 2012 includes all hotels in which the Company has interests as of September 30, 2012. Includes prior ownership results and the Company’s pro forma depreciation expense for the Hyatt Chicago Magnificent Mile acquired by the Company on June 4, 2012, and the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired by the Company on July 19, 2012.
(5)	Depending on the period each hotel was acquired, includes prior ownership results and the Company’s pro forma adjustments related to non-cash amortization of lease intangibles, non-cash straightline lease expense, interest expense and depreciation expense as applicable for the Doubletree Guest Suites Times Square acquired by the Company on January 14, 2011, the JW Marriott New Orleans acquired by the Company on February 15, 2011, the Hilton San Diego Bayfront acquired by the Company on April 15, 2011, the Hyatt Chicago Magnificent Mile acquired by the Company on June 4, 2012 and the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired by the Company on July 19, 2012.
(6)	Other Adjustments for the three months ended March 31, 2011 include: a total of $1.1 million in amortization of lease intangibles at the Doubletree Guest Suites Times Square, Hilton Times Square and JW Marriott New Orleans; a total of $0.7 million in non-cash straightline lease expense at the Doubletree Guest Suites Times Square, Hilton San Diego Bayfront, Hilton Times Square and JW Marriott New Orleans; and $0.1 million in management transition costs at the Hilton Times Square.
(7)	Comparable Portfolio for the three months ended March 31, 2011 includes all hotels in which the Company has interests as of September 30, 2012. Includes prior ownership results and the Company’s pro forma adjustments related to non-cash amortization of lease intangibles, non-cash straightline lease expense, interest expense and depreciation expense as applicable for the Doubletree Guest Suites Times Square acquired by the Company on January 14, 2011, the JW Marriott New Orleans acquired by the Company on February 15, 2011, the Hilton San Diego Bayfront acquired by the Company on April 15, 2011, the Hyatt Chicago Magnificent Mile acquired by the Company on June 4, 2012, and the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired by the Company on July 19, 2012.

APPENDIX Page 60  

Supplemental Financial Information – Unaudited November 1, 2012

Property-Level EBITDA Reconciliation

Q2 2012

	Hotels sorted by number of rooms	For the Three Months Ended June 30, 2012
							Plus:		Plus:		Plus:		Equals:			Hotel
	(In thousands)	Total		Net Income /			Other						Hotel			EBITDA
		Revenues		(Loss)			Adjustments(2)		Depreciation		Interest Expense		EBITDA			Margins
1	Hilton San Diego Bayfront (1) (3)	$	30,860	$	1,250		$	450	$	5,683	$	2,490	$	9,873		32.0	%
2	Renaissance Washington DC	20,099		3,219			-		1,954		1,953		7,126			35.5	%
3	Renaissance Orlando at SeaWorld ®	13,740		1,256			-		1,938		1,140		4,334			31.5	%
4	Kahler Grand	6,017		782			-		832		373		1,987			33.0	%
5	Renaissance Harborplace	11,299		403			-		1,985		1,286		3,674			32.5	%
6	Renaissance Los Angeles Airport	5,668		383			-		702		-		1,085			19.1	%
7	JW Marriott New Orleans	8,767		823			1		1,804		763		3,391			38.7	%
8	Hilton North Houston	5,656		(226		)	-		953		476		1,203			21.3	%
9	Marriott Quincy	6,999		1,047			-		1,163		-		2,210			31.6	%
10	Doubletree Guest Suites Times Square (1)	17,438		1,533			1,000		1,969		2,097		6,599			37.8	%
11	Hilton Times Square	14,321		1,296			270		2,183		1,242		4,991			34.9	%
12	Fairmont Newport Beach	6,408		(103		)	-		1,349		-		1,246			19.4	%
13	Hyatt Chicago Magnificent Mile	7,132		112			143		1,950		-		2,205			30.9	%
14	Marriott Boston Long Wharf	12,167		401			-		2,053		2,486		4,940			40.6	%
15	Hyatt Regency Newport Beach	7,757		888			-		656		-		1,544			19.9	%
16	Marriott Tysons Corner	5,764		695			-		806		602		2,103			36.5	%
17	Marriott Houston	3,950		137			-		584		309		1,030			26.1	%
18	Renaissance Long Beach	5,207		837			-		606		138		1,581			30.4	%
19	Embassy Suites Chicago (3)	7,031		1,630			-		877		1,042		3,549			50.5	%
20	Hilton Garden Inn Chicago Downtown/Magnificent Mile	6,057		1,462			-		1,109		-		2,571			42.4	%
21	Renaissance Westchester	5,335		276			72		372		-		720			13.5	%
22	Embassy Suites La Jolla (3)	4,815		342			-		906		1,146		2,394			49.7	%
23	Marriott Philadelphia	4,679		408			-		479		366		1,253			26.8	%
24	Kahler Inn & Suites	2,098		505			-		350		-		855			40.8	%
25	Marriott Portland	3,400		1,090			-		294		-		1,384			40.7	%
26	Sheraton Cerritos	2,962		296			-		421		-		717			24.2	%
27	Marriott Rochester	3,606		808			-		566		-		1,374			38.1	%
28	Marriott Park City	1,554		(590		)	-		371		203		(16		)	-1.0	%
29	Courtyard by Marriott Los Angeles	2,764		630			-		309		-		939			34.0	%
30	Residence Inn by Marriott Rochester	951		312			-		124		-		436			45.8	%
	Comparable Portfolio (4)	234,501		21,902			1,936		35,348		18,112		77,298			33.0	%
	Prior Ownership Results (5)
	Hyatt Chicago Magnificent Mile	4,475		(202		)	-		1,363		-		1,161			25.9	%
	Hilton Garden Inn Chicago Downtown/Magnificent Mile	6,057		1,462			-		1,109		-		2,571			42.4	%
	Actual Portfolio	$	223,969	$	20,642		$	1,936	$	32,876	$	18,112	$	73,566		32.8	%
	*Footnotes on page 63.

APPENDIX Page 61  

Supplemental Financial Information – Unaudited November 1, 2012

Property-Level EBITDA Reconciliation

Q2 2011

	Hotels sorted by number of rooms	For the Three Months Ended June 30, 2011
							Plus:			Plus:		Plus:		Equals:			Hotel
		Total		Net Income /			Other							Hotel			EBITDA
		Revenues		(Loss)			Adjustments (6)			Depreciation		Interest Expense		EBITDA			Margins
1	Hilton San Diego Bayfront (1)	$	27,981	$	1,086		$	449		$	5,652	$	2,435	$	9,622		34.4	%
2	Renaissance Washington DC (3)	19,267		3,575			-			1,884		1,981		7,440			38.6	%
3	Renaissance Orlando at SeaWorld ® (3)	10,945		(232		)	-			1,884		1,166		2,818			25.7	%
4	Kahler Grand (3)	6,407		1,007			-			793		382		2,182			34.1	%
5	Renaissance Harborplace (3)	11,072		437			-			2,011		1,307		3,755			33.9	%
6	Renaissance Los Angeles Airport	5,172		211			-			717		-		928			17.9	%
7	JW Marriott New Orleans	7,894		(212		)	3			1,774		1,439		3,004			38.1	%
8	Hilton North Houston (3)	4,963		(328		)	-			819		483		974			19.6	%
9	Marriott Quincy	6,333		546			-			1,117		-		1,663			26.3	%
10	Doubletree Guest Suites Times Square (1) (3)	16,538		2,210			967			2,070		951		6,198			37.5	%
11	Hilton Times Square	13,084		117			269			2,109		1,247		3,742			28.6	%
12	Fairmont Newport Beach (3)	6,429		220			-			1,370		-		1,590			24.7	%
13	Hyatt Chicago Magnificent Mile	7,522		335			-			1,950		-		2,285			30.4	%
14	Marriott Boston Long Wharf	10,656		(491		)	-			1,964		2,486		3,959			37.2	%
15	Hyatt Regency Newport Beach (3)	7,644		767			-			679		-		1,446			18.9	%
16	Marriott Tysons Corner	6,191		973			-			771		618		2,362			38.2	%
17	Marriott Houston (3)	3,520		(232		)	-			508		317		593			16.8	%
18	Renaissance Long Beach	4,692		166			-			604		419		1,189			25.3	%
19	Embassy Suites Chicago (3)	6,871		2,123			-			882		1,064		4,069			59.2	%
20	Hilton Garden Inn Chicago Downtown/Magnificent Mile	5,445		1,166			-			1,109		-		2,275			41.8	%
21	Renaissance Westchester (3)	5,048		333			-			300		-		633			12.5	%
22	Embassy Suites La Jolla (3)	4,502		(196		)	-			913		1,159		1,876			41.7	%
23	Marriott Philadelphia	4,913		665			-			457		375		1,497			30.5	%
24	Kahler Inn & Suites	1,725		365			-			289		-		654			37.9	%
25	Marriott Portland (3)	3,113		1,013			-			285		-		1,298			41.7	%
26	Sheraton Cerritos	2,802		348			-			417		-		765			27.3	%
27	Marriott Rochester (3)	2,949		548			-			520		-		1,068			36.2	%
28	Marriott Park City	1,229		(689		)	-			320		208		(161		)	-13.1	%
29	Courtyard by Marriott Los Angeles	1,991		164			-			244		-		408			20.5	%
30	Residence Inn by Marriott Rochester	978		321			-			136		-		457			46.7	%
	Comparable Portfolio (7)	217,876		16,316			1,688			34,548		18,037		70,589			32.4	%
	Prior Ownership Results (5)
	Hilton San Diego Bayfront (1)	4,064		87			(70		)	917		312		1,246			30.7	%
	Hyatt Chicago Magnificent Mile	7,522		335			-			1,950		-		2,285			30.4	%
	Hilton Garden Inn Chicago Downtown/Magnificent Mile	5,445		1,166			-			1,109		-		2,275			41.8	%
	Actual Portfolio	$	200,845	$	14,728		$	1,758		$	30,572	$	17,725	$	64,783		32.3	%
	*Footnotes on page 63.

APPENDIX Page 62  

Supplemental Financial Information – Unaudited November 1, 2012

Property-Level EBITDA Reconciliation

(1)	Includes 100% of the operating results for both the Doubletree Guest Suites Times Square and the Hilton San Diego Bayfront.
(2)	Other Adjustments for the three months ended June 30, 2012 include: a total of $1.0 million in amortization of lease intangibles at the Doubletree Guest Suites Times Square, Hilton Times Square and  JW Marriott New Orleans; a total of $0.7 million in non-cash straightline lease expense at the Doubletree Guest Suites Times Square, Hilton San Diego Bayfront, Hilton Times Square and JW Marriott New Orleans; $0.1 million in management transition costs at the Renaissance Westchester; and $0.1 million in management transition costs at the Hyatt Chicago Magnificent Mile.
(3)	Hotel EBITDA for the second quarter of 2012 is impacted by a total $(0.1) million in property tax (assessments) net of credits received at the following hotels: Embassy Suites Chicago $611,000; Embassy Suites La Jolla $301,000; and Hilton San Diego Bayfront $(1,061,000). Hotel EBITDA for the second quarter of 2011 is impacted by a total $0.9 million in property tax credits net of (assessments) received at the following hotels: Doubletree Guest Suites Times Square $(112,000); Embassy Suites Chicago $492,000; Embassy Suites La Jolla $2,000; Fairmont Newport Beach $485,000; Hilton North Houston $123,000; Hyatt Regency Newport Beach $31,000; Kahler Grand $(1,000); Marriott Houston $(33,000); Marriott Portland $48,000; Marriott Rochester $(2,000); Renaissance Harborplace $157,000; Renaissance Orlando at SeaWorld ® $(9,000); Renaissance Washington DC $(54,000); and Renaissance Westchester $(212,000).
(4)	Comparable Portfolio for the three months ended June 30, 2012 includes all hotels in which the Company has interests as of September 30, 2012. Includes the Company’s ownership results, prior ownership results and the Company’s pro forma depreciation expense for the Hyatt Chicago Magnificent Mile acquired by the Company on June 4, 2012, and prior ownership results and the Company’s pro forma depreciation expense for the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired by the Company on July 19, 2012.
(5)	Depending on the period each hotel was acquired, includes prior ownership results and the Company’s pro forma adjustments related to non-cash straightline lease expense, interest expense and depreciation expense as applicable for the Hilton San Diego Bayfront acquired by the Company on April 15, 2011, the Hyatt Chicago Magnificent Mile acquired by the Company on June 4, 2012 and the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired by the Company on July 19, 2012.
(6)	Other Adjustments for the three months ended June 30, 2011 include: a total of $1.0 million in amortization of lease intangibles at the Doubletree Guest Suites Times Square, Hilton Times Square and JW Marriott New Orleans; and a total of $0.7 million in non-cash straightline lease expense at the Doubletree Guest Suites Times Square, Hilton San Diego Bayfront, Hilton Times Square and JW Marriott New Orleans.
(7)	Comparable Portfolio for the three months ended June 30, 2011 includes all hotels in which the Company has interests as of September 30, 2012. Includes prior ownership results and the Company’s pro forma adjustments related to non-cash straightline lease expense, interest expense and depreciation expense as applicable for the Hilton San Diego Bayfront acquired by the Company on April 15, 2011, the Hyatt Chicago Magnificent Mile acquired by the Company on June 4, 2012, and the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired by the Company on July 19, 2012.

APPENDIX Page 63  

Supplemental Financial Information – Unaudited November 1, 2012

Property-Level EBITDA Reconciliation

Q3 2012

	Hotels sorted by number of rooms	For the Three Months Ended September 30, 2012
							Plus:		Plus:		Plus:		Equals:		Hotel
	(In thousands)	Total		Net Income /			Other						Hotel		EBITDA
		Revenues		(Loss)			Adjustments (2)		Depreciation		Interest Expense		EBITDA		Margins
1	Hilton San Diego Bayfront (1) (3)	$	30,735	$	3,305		$	450	$	5,688	$	2,487	$	11,930	38.8%
2	Renaissance Washington DC	10,717		(3,110		)	-		1,992		1,945		827		7.7%
3	Renaissance Orlando at SeaWorld ®	11,320		(1,084		)	-		1,869		1,145		1,930		17.0%
4	Kahler Grand	6,009		648			-		850		374		1,872		31.2%
5	Renaissance Harborplace (3)	9,785		(186		)	-		1,893		1,289		2,996		30.6%
6	Renaissance Los Angeles Airport	5,636		166			-		726		-		892		15.8%
7	JW Marriott New Orleans	5,825		(1,846		)	1		1,821		626		602		10.3%
8	Hilton North Houston	5,469		(514		)	-		962		480		928		17.0%
9	Marriott Quincy	6,559		724			-		1,136		-		1,860		28.4%
10	Doubletree Guest Suites Times Square (1)	17,134		641			1,425		1,995		1,936		5,997		35.0%
11	Hilton Times Square	13,480		67			270		2,324		1,253		3,914		29.0%
12	Fairmont Newport Beach	7,148		235			-		1,292		-		1,527		21.4%
13	Hyatt Chicago Magnificent Mile	7,593		(663		)	32		2,559		-		1,928		25.4%
14	Marriott Boston Long Wharf	13,043		820			-		2,085		2,514		5,419		41.5%
15	Hyatt Regency Newport Beach	8,774		1,309			-		637		-		1,946		22.2%
16	Marriott Tysons Corner	4,633		(23		)	-		807		605		1,389		30.0%
17	Marriott Houston	3,713		(227		)	-		606		310		689		18.6%
18	Renaissance Long Beach	4,308		239			-		584		-		823		19.1%
19	Embassy Suites Chicago	7,165		1,178			-		872		1,049		3,099		43.3%
20	Hilton Garden Inn Chicago Downtown/Magnificent Mile	5,934		1,503			-		1,121		-		2,624		44.2%
21	Renaissance Westchester	4,563		(64		)	-		359		-		295		6.5%
22	Embassy Suites La Jolla	5,462		408			-		908		1,143		2,459		45.0%
23	Marriott Philadelphia	3,753		(191		)	-		483		368		660		17.6%
24	Kahler Inn & Suites	2,023		438			-		351		-		789		39.0%
25	Marriott Portland	4,137		1,660			-		290		-		1,950		47.1%
26	Sheraton Cerritos	2,748		226			-		406		-		632		23.0%
27	Marriott Rochester	3,645		811			-		568		-		1,379		37.8%
28	Marriott Park City	1,897		(326		)	-		355		204		233		12.3%
29	Courtyard by Marriott Los Angeles	2,830		654			-		310		-		964		34.1%
30	Residence Inn by Marriott Rochester	917		308			-		119		-		427		46.6%
	Comparable Portfolio (4)	216,955		7,106			2,178		35,968		17,728		62,980		29.0%
	Prior Ownership Results (5)
	Hilton Garden Inn Chicago Downtown/Magnificent Mile	913		367			-		-		-		367		40.2%
	Actual Portfolio	$	216,042	$	6,739		$	2,178	$	35,968	$	17,728	$	62,613	29.0%
	*Footnotes on page 66.

APPENDIX Page 64  

Supplemental Financial Information – Unaudited
November 1, 2012

Property-Level EBITDA Reconciliation

Q3 2011

	Hotels sorted by number of rooms	For the Three Months Ended September 30, 2011
							Plus:			Plus:		Plus:		Equals:		Hotel
		Total		Net Income /			Other							Hotel		EBITDA
		Revenues		(Loss)			Adjustments (6)			Depreciation		Interest Expense		EBITDA		Margins
1	Hilton San Diego Bayfront (1)	$	26,733	$	(126	)	$	450		$	5,657	$	2,434	$	8,415	31.5%
2	Renaissance Washington DC	13,944		(1,062		)	-			1,903		1,974		2,815		20.2%
3	Renaissance Orlando at SeaWorld ®	8,028		(2,725		)	-			1,935		1,172		382		4.8%
4	Kahler Grand	6,262		741			-			800		384		1,925		30.7%
5	Renaissance Harborplace	9,350		(860		)	-			2,014		1,330		2,484		26.6%
6	Renaissance Los Angeles Airport	5,329		209			-			724		-		933		17.5%
7	JW Marriott New Orleans	5,413		(2,767		)	(1		)	1,778		1,667		677		12.5%
8	Hilton North Houston	3,819		(843		)	-			888		487		532		13.9%
9	Marriott Quincy	6,676		575			-			1,183		-		1,758		26.3%
10	Doubletree Guest Suites Times Square (1)	17,485		2,218			1,004			2,071		948		6,241		35.7%
11	Hilton Times Square	13,676		370			269			2,154		1,258		4,051		29.6%
12	Fairmont Newport Beach	6,360		(172		)	-			1,360		-		1,188		18.7%
13	Hyatt Chicago Magnificent Mile	6,908		283			-			1,950		-		2,233		32.3%
14	Marriott Boston Long Wharf	10,973		(635		)	-			2,015		2,514		3,894		35.5%
15	Hyatt Regency Newport Beach	8,996		1,314			-			658		-		1,972		21.9%
16	Marriott Tysons Corner	4,773		(154		)	-			800		620		1,266		26.5%
17	Marriott Houston	3,012		(280		)	-			556		319		595		19.8%
18	Renaissance Long Beach	4,275		(111		)	-			607		421		917		21.5%
19	Embassy Suites Chicago	6,744		830			-			865		1,068		2,763		41.0%
20	Hilton Garden Inn Chicago Downtown/Magnificent Mile	5,254		990			-			1,110		-		2,100		40.0%
21	Renaissance Westchester	4,383		127			-			343		-		470		10.7%
22	Embassy Suites La Jolla	5,392		347			-			895		1,156		2,398		44.5%
23	Marriott Philadelphia	3,972		(145		)	-			460		377		692		17.4%
24	Kahler Inn & Suites	1,931		401			-			331		-		732		37.9%
25	Marriott Portland	3,643		1,342			-			287		-		1,629		44.7%
26	Sheraton Cerritos	2,746		193			-			422		-		615		22.4%
27	Marriott Rochester	3,409		712			-			548		-		1,260		37.0%
28	Marriott Park City	1,838		(348		)	-			325		209		186		10.1%
29	Courtyard by Marriott Los Angeles	2,561		509			-			299		-		808		31.6%
30	Residence Inn by Marriott Rochester	923		283			-			126		-		409		44.3%
	Comparable Portfolio (7)	204,808		1,216			1,722			35,064		18,338		56,340		27.5%
	Prior Ownership Results (5)
	Hyatt Chicago Magnificent Mile	6,908		283			-			1,950		-		2,233		32.3%
	Hilton Garden Inn Chicago Downtown/Magnificent Mile	5,254		990			-			1,110		-		2,100		40.0%
	Actual Portfolio	$	192,646	$	(57	)	$	1,722		$	32,004	$	18,338	$	52,007	27.0%
	*Footnotes on page 66.

APPENDIX Page 65  

Supplemental Financial Information – Unaudited
November 1, 2012

Property-Level EBITDA Reconciliation

(1)Includes 100% of the operating results for both the Doubletree Guest Suites Times Square and the Hilton San Diego Bayfront.

(2)Other Adjustments for the three months ended September 30, 2012 include: a total of $1.0 million in amortization of lease intangibles at the Doubletree Guest Suites Times Square, Hilton Times Square and  JW Marriott New Orleans; a total of $0.7 million in non-cash straightline lease expense at the Doubletree Guest Suites Times Square, Hilton San Diego Bayfront, Hilton Times Square and JW Marriott New Orleans; $0.4 million in hotel laundry closure costs at the Doubletree Guest Suites Times Square; and $32,000 in management transition costs at the Hyatt Chicago Magnificent Mile.

(3)Hotel EBITDA for the third quarter of 2012 is impacted by the following: $0.3 million credit related to prior year property tax expense at the Hilton San Diego Bayfront; and $0.2 million credit related to prior year CAM expense at the Renaissance Harborplace.

(4)Comparable Portfolio for the three months ended September 30, 2012 includes all hotels in which the Company has interests as of September 30, 2012. Includes the Company’s ownership results and prior ownership results for the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired by the Company on July 19, 2012.

(5)Depending on the period each hotel was acquired, includes prior ownership results and the Company’s pro forma adjustments related to depreciation expense for the Hyatt Chicago Magnificent Mile acquired by the Company on June 4, 2012 and the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired by the Company on July 19, 2012.

(6)Other Adjustments for the three months ended September 30, 2011 include: a total of $1.0 million in amortization of lease intangibles at the Doubletree Guest Suites Times Square, Hilton Times Square and JW Marriott New Orleans; and a total of $0.7 million in non-cash straightline lease expense at the Doubletree Guest Suites Times Square, Hilton San Diego Bayfront, Hilton Times Square and JW Marriott New Orleans.

(7)Comparable Portfolio for the three months ended September 30, 2011 includes all hotels in which the Company has interests as of September 30, 2012. Includes prior ownership results and the Company’s pro forma adjustments related to depreciation expense for the Hyatt Chicago Magnificent Mile acquired by the Company on June 4, 2012, and the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired by the Company on July 19, 2012.

APPENDIX Page 66  

Supplemental Financial Information – Unaudited
November 1, 2012

Property-Level EBITDA Reconciliation
YTD Q3 2012

	Hotels sorted by number of rooms	For the Nine Months Ended September 30, 2012
							Plus:		Plus:		Plus:		Equals:		Hotel
	(In thousands)	Total		Net Income /			Other						Hotel		EBITDA
		Revenues		(Loss)			Adjustments(2)		Depreciation		Interest Expense		EBITDA		Margins
1	Hilton San Diego Bayfront (1) (3)	$	92,215	$	6,797		$	1,350	$	17,045	$	7,487	$	32,679	35.4	%
2	Renaissance Washington DC	44,517		(1,265		)	-		5,872		5,858		10,465		23.5	%
3	Renaissance Orlando at SeaWorld ®	40,710		2,626			-		5,776		3,431		11,833		29.1	%
4	Kahler Grand (3)	17,530		1,928			-		2,499		1,122		5,549		31.7	%
5	Renaissance Harborplace (3)	28,131		(2,371		)	-		5,906		3,871		7,406		26.3	%
6	Renaissance Los Angeles Airport	16,981		927			-		2,116		-		3,043		17.9	%
7	JW Marriott New Orleans	22,904		(487		)	3		5,423		1,974		6,913		30.2	%
8	Hilton North Houston (3)	17,044		(596		)	-		2,860		1,434		3,698		21.7	%
9	Marriott Quincy	18,388		1,232			-		3,527		-		4,759		25.9	%
10	Doubletree Guest Suites Times Square (1)	46,521		(994		)	3,428		5,947		5,989		14,370		30.9	%
11	Hilton Times Square	38,055		(1,010		)	810		6,664		3,738		10,202		26.8	%
12	Fairmont Newport Beach	19,558		(308		)	-		3,994		-		3,686		18.8	%
13	Hyatt Chicago Magnificent Mile	18,538		(3,144		)	175		6,459		-		3,490		18.8	%
14	Marriott Boston Long Wharf	33,381		(1,852		)	-		6,291		7,486		11,925		35.7	%
15	Hyatt Regency Newport Beach	23,150		2,439			-		1,949		-		4,388		19.0	%
16	Marriott Tysons Corner	15,105		626			-		2,425		1,813		4,864		32.2	%
17	Marriott Houston (3)	11,613		10			-		1,758		930		2,698		23.2	%
18	Renaissance Long Beach	14,239		1,215			-		1,807		549		3,571		25.1	%
19	Embassy Suites Chicago (3)	17,902		1,382			-		2,628		3,138		7,148		39.9	%
20	Hilton Garden Inn Chicago Downtown/Magnificent Mile	15,132		2,271			-		3,339		-		5,610		37.1	%
21	Renaissance Westchester	13,900		(684		)	466		1,117		-		899		6.5	%
22	Embassy Suites La Jolla (3)	14,725		526			-		2,717		3,438		6,681		45.4	%
23	Marriott Philadelphia	12,379		9			-		1,437		1,103		2,549		20.6	%
24	Kahler Inn & Suites (3)	6,186		1,465			-		1,050		-		2,515		40.7	%
25	Marriott Portland	10,312		3,396			-		878		-		4,274		41.4	%
26	Sheraton Cerritos	8,643		783			-		1,254		-		2,037		23.6	%
27	Marriott Rochester (3)	10,067		1,868			-		1,696		-		3,564		35.4	%
28	Marriott Park City	7,737		372			-		1,076		611		2,059		26.6	%
29	Courtyard by Marriott Los Angeles	8,215		1,807			-		925		-		2,732		33.3	%
30	Residence Inn by Marriott Rochester	2,770		870			-		368		-		1,238		44.7	%
	Comparable Portfolio (4)	646,548		19,838			6,232		106,803		53,972		186,845		28.9	%
	Prior Ownership Results (5)
	Hyatt Chicago Magnificent Mile	8,288		(2,795		)	-		3,313		-		518		6.3	%
	Hilton Garden Inn Chicago Downtown/Magnificent Mile	10,111		1,135			-		2,218		-		3,353		33.2	%
	Actual Portfolio	$	628,149	$	21,498		$	6,232	$	101,272	$	53,972	$	182,974	29.1	%
	*Footnotes on page 69.

APPENDIX Page 67  

Supplemental Financial Information – Unaudited
November 1, 2012

Property-Level EBITDA Reconciliation

YTD Q3 2011

	Hotels sorted by number of rooms	For the Nine Months Ended September 30, 2011
							Plus:		Plus:		Plus:		Equals:		Hotel
		Total		Net Income /			Other						Hotel		EBITDA
		Revenues		(Loss)			Adjustments (6)		Depreciation		Interest Expense		EBITDA		Margins
1	Hilton San Diego Bayfront (1)	$	84,590	$	3,859		$	1,349	$	16,177	$	7,140	$	28,525	33.7	%
2	Renaissance Washington DC (3)	49,415		3,254			-		5,628		5,942		14,824		30.0	%
3	Renaissance Orlando at SeaWorld ® (3)	34,057		(551		)	-		5,657		3,497		8,603		25.3	%
4	Kahler Grand (3)	18,162		2,036			-		2,331		1,146		5,513		30.4	%
5	Renaissance Harborplace (3)	27,961		(2,812		)	-		6,028		4,007		7,223		25.8	%
6	Renaissance Los Angeles Airport	15,794		464			-		2,150		-		2,614		16.6	%
7	JW Marriott New Orleans	20,536		(2,353		)	3		4,700		3,679		6,029		29.4	%
8	Hilton North Houston (3)	14,100		(1,494		)	-		2,523		1,449		2,478		17.6	%
9	Marriott Quincy	17,084		264			-		3,405		-		3,669		21.5	%
10	Doubletree Guest Suites Times Square (1) (3)	45,471		1,846			3,016		6,180		2,922		13,964		30.7	%
11	Hilton Times Square	36,164		(2,091		)	890		6,596		3,743		9,138		25.3	%
12	Fairmont Newport Beach (3)	18,843		(512		)	-		4,108		-		3,596		19.1	%
13	Hyatt Chicago Magnificent Mile	17,752		(2,148		)	-		5,850		-		3,702		20.9	%
14	Marriott Boston Long Wharf	28,151		(4,750		)	-		5,939		7,459		8,648		30.7	%
15	Hyatt Regency Newport Beach (3)	22,875		2,448			-		2,017		-		4,465		19.5	%
16	Marriott Tysons Corner	15,289		579			-		2,258		1,853		4,690		30.7	%
17	Marriott Houston (3)	9,437		(991		)	-		1,488		951		1,448		15.3	%
18	Renaissance Long Beach	13,816		330			-		1,811		1,256		3,397		24.6	%
19	Embassy Suites Chicago (3)	17,046		948			-		2,565		3,185		6,698		39.3	%
20	Hilton Garden Inn Chicago Downtown/Magnificent Mile	13,409		1,316			-		3,328		-		4,644		34.6	%
21	Renaissance Westchester (3)	12,837		93			-		937		-		1,030		8.0	%
22	Embassy Suites La Jolla (3)	14,088		(345		)	-		2,762		3,472		5,889		41.8	%
23	Marriott Philadelphia	12,469		185			-		1,365		1,126		2,676		21.5	%
24	Kahler Inn & Suites	5,449		1,222			-		848		-		2,070		38.0	%
25	Marriott Portland (3)	9,167		2,697			-		854		-		3,551		38.7	%
26	Sheraton Cerritos	7,648		399			-		1,214		-		1,613		21.1	%
27	Marriott Rochester (3)	8,792		1,331			-		1,552		-		2,883		32.8	%
28	Marriott Park City	7,552		371			-		938		624		1,933		25.6	%
29	Courtyard by Marriott Los Angeles	6,583		1,002			-		717		-		1,719		26.1	%
30	Residence Inn by Marriott Rochester	2,865		887			-		401		-		1,288		45.0	%
	Comparable Portfolio (7)	607,402		7,484			5,258		102,327		53,451		168,520		27.7	%
	Prior Ownership Results (5)
	Doubletree Guest Suites Times Square (1)	1,560		(458		)	145		261		138		86		5.5	%
	JW Marriott New Orleans	3,277		174			1		262		287		724		22.1	%
	Hilton San Diego Bayfront (1)	33,939		2,986			380		5,785		2,583		11,734		34.6	%
	Hyatt Chicago Magnificent Mile	17,752		(2,148		)	-		5,850		-		3,702		20.9	%
	Hilton Garden Inn Chicago Downtown/Magnificent Mile	13,409		1,316			-		3,328		-		4,644		34.6	%
	Actual Portfolio	$	537,465	$	5,614		$	4,732	$	86,841	$	50,443	$	147,630	27.5	%
	*Footnotes on page 69.

APPENDIX Page 68  

Supplemental Financial Information – Unaudited
November 1, 2012

Property-Level EBITDA Reconciliation

(1)	Includes 100% of the operating results for both the Doubletree Guest Suites Times Square and the Hilton San Diego Bayfront.
(2)	Other Adjustments for the nine months ended September 30, 2012 include: a total of $3.1 million in amortization of lease intangibles at the Doubletree Guest Suites Times Square, Hilton Times Square and JW Marriott New Orleans; a total of $2.1 million in non-cash straightline lease expense at the Doubletree Guest Suites Times Square, Hilton San Diego Bayfront, Hilton Times Square and JW Marriott New Orleans; $0.4 million in hotel laundry closure costs at the Doubletree Guest Suites Times Square; $0.5 million in management transition costs at the Renaissance Westchester; and $0.2 million in management transition costs at the Hyatt Chicago Magnificent Mile.
(3)	Hotel EBITDA for the first nine months of 2012 is impacted by: (1) $0.2 million credit related to prior year CAM expense at the Renaissance Harborplace; and (2) a total of $0.4 million in property tax credits net of (assessments) received at the following hotels: Embassy Suites Chicago $611,000; Embassy Suites La Jolla $301,000; Hilton North Houston $56,000; Hilton San Diego Bayfront $(811,000); Kahler Grand $44,000; Kahler Inn & Suites $15,000; Marriott Houston $43,000; Marriott Rochester $10,000; and Renaissance Harborplace $106,000. Hotel EBITDA for the first nine months of 2011 is impacted by a total of $0.6 million in property tax credits net of (assessments) received at the following hotels: Doubletree Guest Suites Times Square $(112,000); Embassy Suites Chicago $177,000; Embassy Suites La Jolla $2,000; Fairmont Newport Beach $485,000; Hilton North Houston $123,000; Hyatt Regency Newport Beach $31,000; Kahler Grand $(1,000); Marriott Houston $(33,000); Marriott Portland $48,000; Marriott Rochester $(2,000); Renaissance Harborplace $157,000; Renaissance Orlando at SeaWorld ® $(9,000); Renaissance Washington DC $(54,000); and Renaissance Westchester $(212,000).
(4)	Comparable Portfolio for the nine months ended September 30, 2012 includes all hotels in which the Company has interests as of September 30, 2012. Includes the Company’s ownership results, prior ownership results and the Company’s pro forma depreciation expense for the Hyatt Chicago Magnificent Mile acquired by the Company on June 4, 2012, and the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired by the Company on July 19, 2012.
(5)	Depending on the period each hotel was acquired, includes prior ownership results and the Company’s pro forma adjustments related to non-cash amortization of lease intangibles, non-cash straightline lease expense, interest expense and depreciation expense as applicable for the Doubletree Guest Suites Times Square acquired by the Company on January 14, 2011, the JW Marriott New Orleans acquired by the Company on February 15, 2011, the Hilton San Diego Bayfront acquired by the Company on April 15, 2011, the Hyatt Chicago Magnificent Mile acquired by the Company on June 4, 2012, and the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired by the Company on July 19, 2012.
(6)	Other Adjustments for the nine months ended September 30, 2011 include: a total of $3.1 million in amortization of lease intangibles at the Doubletree Guest Suites Times Square, Hilton Times Square and JW Marriott New Orleans; a total of $2.1 million in non-cash straightline lease expense at the Doubletree Guest Suites Times Square, Hilton San Diego Bayfront, Hilton Times Square and JW Marriott New Orleans; and a total of $0.1 million in management company transition costs at the Hilton Times Square.
(7)	Comparable Portfolio for the nine months ended September 30, 2011 includes all hotels in which the Company has interests as of September 30, 2012. Includes prior ownership results and the Company’s pro forma adjustments related to non-cash amortization of lease intangibles, non-cash straightline lease expense, interest expense and depreciation expense as applicable for the Doubletree Guest Suites Times Square acquired by the Company on January 14, 2011, the JW Marriott New Orleans acquired by the Company on February 15, 2011, the Hilton San Diego Bayfront acquired by the Company on April 15, 2011, the Hyatt Chicago Magnificent Mile acquired by the Company on June 4, 2012, and the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired by the Company on July 19, 2012.

APPENDIX Page 69  

Supplemental Financial Information – Unaudited
November 1, 2012

Property-Level EBITDA Reconciliation

Q4 2011

	Hotels sorted by number of rooms	For the Three Months Ended December 31, 2011
							Plus:		Plus:		Plus:		Equals:		Hotel
		Total		Net Income /			Other						Hotel		EBITDA
		Revenues		(Loss)			Adjustments (2)		Depreciation		Interest Expense		EBITDA		Margins
1	Hilton San Diego Bayfront (1)	$	27,554	$	398		$	450	$	5,663	$	2,455	$	8,966	32.5	%
2	Renaissance Washington DC	21,969		2,953			-		1,904		1,967		6,824		31.1	%
3	Renaissance Orlando at SeaWorld ®	14,216		365			-		1,951		1,166		3,482		24.5	%
4	Kahler Grand	5,372		383			-		807		382		1,572		29.3	%
5	Renaissance Harborplace	12,621		242			-		2,015		1,320		3,577		28.3	%
6	Renaissance Los Angeles Airport	6,566		311			-		735		-		1,046		15.9	%
7	JW Marriott New Orleans	9,209		217			1		1,784		587		2,589		28.1	%
8	Hilton North Houston	5,294		(625		)	-		944		485		804		15.2	%
9	Marriott Quincy	8,656		1,100			-		1,220		-		2,320		26.8	%
10	Doubletree Guest Suites Times Square (1)	20,522		3,439			1,004		2,131		2,401		8,975		43.7	%
11	Hilton Times Square	15,618		2,219			270		2,363		1,257		6,109		39.1	%
12	Fairmont Newport Beach	5,336		(924		)	-		1,351		-		427		8.0	%
13	Hyatt Chicago Magnificent Mile	6,253		(259		)	-		1,950		-		1,691		27.0	%
14	Marriott Boston Long Wharf	13,242		(297		)	-		2,148		2,513		4,364		33.0	%
15	Hyatt Regency Newport Beach	6,002		30			-		657		-		687		11.4	%
16	Marriott Tysons Corner	7,130		933			-		812		617		2,362		33.1	%
17	Marriott Houston	3,048		(625		)	-		562		316		253		8.3	%
18	Renaissance Long Beach	5,467		131			-		610		418		1,159		21.2	%
19	Embassy Suites Chicago	5,841		(509		)	-		874		1,064		1,429		24.5	%
20	Hilton Garden Inn Chicago Downtown/Magnificent Mile	4,837		723			-		1,109		-		1,832		37.9	%
21	Renaissance Westchester	6,127		396			-		375		-		771		12.6	%
22	Embassy Suites La Jolla	4,047		(460		)	-		900		1,152		1,592		39.3	%
23	Marriott Philadelphia	6,030		723			-		468		375		1,566		26.0	%
24	Kahler Inn & Suites	1,859		402			-		344		-		746		40.1	%
25	Marriott Portland	2,983		814			-		290		-		1,104		37.0	%
26	Sheraton Cerritos	2,774		331			-		425		-		756		27.3	%
27	Marriott Rochester	3,083		489			-		556		-		1,045		33.9	%
28	Marriott Park City	1,665		(427		)	-		342		207		122		7.3	%
29	Courtyard by Marriott Los Angeles	2,315		156			-		306		-		462		20.0	%
30	Residence Inn by Marriott Rochester	854		253			-		126		-		379		44.4	%
	Comparable Portfolio (3)	236,490		12,882			1,725		35,722		18,682		69,011		29.2	%
	Prior Ownership Results (4)
	Hyatt Chicago Magnificent Mile	6,253		(259		)	-		1,950		-		1,691		27.0	%
	Hilton Garden Inn Chicago Downtown/Magnificent Mile	4,837		723			-		1,109		-		1,832		37.9	%
	Actual Portfolio	$	225,400	$	12,418		$	1,725	$	32,663	$	18,682	$	65,488	29.1	%
	*Footnotes on page 71.

APPENDIX Page 70  

Supplemental Financial Information – Unaudited
November 1, 2012

Property-Level EBITDA Reconciliation

(1)	Includes 100% of the operating results for both the Doubletree Guest Suites Times Square and the Hilton San Diego Bayfront.
(2)	Other Adjustments for the three months ended December 31, 2011 include: a total of $1.0 million in amortization of lease intangibles at the Doubletree Guest Suites Times Square, Hilton Times Square, and JW Marriott New Orleans; and a total of $0.7 million in non-cash straightline lease expense at the Doubletree Guest Suites Times Square, Hilton San Diego Bayfront, Hilton Times Square and JW Marriott New Orleans.
(3)	Comparable Portfolio for the three months ended December 31, 2011 includes all hotels in which the Company has interests as of September 30, 2012. Includes prior ownership results and the Company’s pro forma depreciation expense for the Hyatt Chicago Magnificent Mile acquired by the Company on June 4, 2012, and the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired by the Company on July 19, 2012.
(4)	Includes prior ownership results and the Company’s pro forma depreciation expense for the Hyatt Chicago Magnificent Mile acquired by the Company on June 4, 2012, and the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired by the Company on July 19, 2012.

APPENDIX Page 71  

Supplemental Financial Information – Unaudited
November 1, 2012

Property-Level EBITDA Reconciliation
FY 2011

	Hotels sorted by number of rooms	For the Year Ended December 31, 2011
							Plus:		Plus:		Plus:		Equals:		Hotel
		Total		Net Income /			Other						Hotel		EBITDA
		Revenues		(Loss)			Adjustments(2)		Depreciation		Interest Expense		EBITDA		Margins
1	Hilton San Diego Bayfront (1)	$	112,144	$	4,257		$	1,799	$	21,840	$	9,595	$	37,491	33.4	%
2	Renaissance Washington DC (3)	71,384		6,207			-		7,532		7,909		21,648		30.3	%
3	Renaissance Orlando at SeaWorld ® (3)	48,273		(186		)	-		7,608		4,663		12,085		25.0	%
4	Kahler Grand (3)	23,534		2,419			-		3,138		1,528		7,085		30.1	%
5	Renaissance Harborplace (3)	40,582		(2,570		)	-		8,043		5,327		10,800		26.6	%
6	Renaissance Los Angeles Airport	22,360		775			-		2,885		-		3,660		16.4	%
7	JW Marriott New Orleans	29,745		(2,136		)	4		6,484		4,266		8,618		29.0	%
8	Hilton North Houston (3)	19,394		(2,119		)	-		3,467		1,934		3,282		16.9	%
9	Marriott Quincy	25,740		1,364			-		4,625		-		5,989		23.3	%
10	Doubletree Guest Suites Times Square (1) (3)	65,993		5,285			4,020		8,311		5,323		22,939		34.8	%
11	Hilton Times Square	51,782		128			1,160		8,959		5,000		15,247		29.4	%
12	Fairmont Newport Beach (3)	24,179		(1,436		)	-		5,459		-		4,023		16.6	%
13	Hyatt Chicago Magnificent Mile	24,005		(2,407		)	-		7,800		-		5,393		22.5	%
14	Marriott Boston Long Wharf	41,393		(5,047		)	-		8,087		9,972		13,012		31.4	%
15	Hyatt Regency Newport Beach (3)	28,877		2,478			-		2,674		-		5,152		17.8	%
16	Marriott Tysons Corner	22,419		1,512			-		3,070		2,470		7,052		31.5	%
17	Marriott Houston (3)	12,485		(1,616		)	-		2,050		1,267		1,701		13.6	%
18	Renaissance Long Beach	19,283		461			-		2,421		1,674		4,556		23.6	%
19	Embassy Suites Chicago (3)	22,887		439			-		3,439		4,249		8,127		35.5	%
20	Hilton Garden Inn Chicago Downtown/Magnificent Mile	18,246		2,039			-		4,437		-		6,476		35.5	%
21	Renaissance Westchester (3)	18,964		489			-		1,312		-		1,801		9.5	%
22	Embassy Suites La Jolla (3)	18,135		(805		)	-		3,662		4,624		7,481		41.3	%
23	Marriott Philadelphia	18,499		908			-		1,833		1,501		4,242		22.9	%
24	Kahler Inn & Suites	7,308		1,624			-		1,192		-		2,816		38.5	%
25	Marriott Portland (3)	12,150		3,511			-		1,144		-		4,655		38.3	%
26	Sheraton Cerritos	10,422		730			-		1,639		-		2,369		22.7	%
27	Marriott Rochester (3)	11,875		1,820			-		2,108		-		3,928		33.1	%
28	Marriott Park City	9,217		(56		)	-		1,280		831		2,055		22.3	%
29	Courtyard by Marriott Los Angeles	8,898		1,158			-		1,023		-		2,181		24.5	%
30	Residence Inn by Marriott Rochester	3,719		1,140			-		527		-		1,667		44.8	%
	Comparable Portfolio (4)	843,892		20,366			6,983		138,049		72,133		237,531		28.1	%
	Prior Ownership Results (5)
	Doubletree Guest Suites Times Square (1)	1,560		(458		)	145		261		138		86		5.5	%
	JW Marriott New Orleans	3,277		174			1		262		287		724		22.1	%
	Hilton San Diego Bayfront (1)	33,939		2,986			380		5,785		2,583		11,734		34.6	%
	Hyatt Chicago Magnificent Mile	24,005		(2,407		)	-		7,800		-		5,393		22.5	%
	Hilton Garden Inn Chicago Downtown/Magnificent Mile	18,246		2,039			-		4,437		-		6,476		35.5	%
	Actual Portfolio	$	762,865	$	18,032		$	6,457	$	119,504	$	69,125	$	213,118	27.9	%
	*Footnotes on page 73.

APPENDIX Page 72  

Supplemental Financial Information – Unaudited
November 1, 2012

Property-Level EBITDA Reconciliation

(1)	Includes 100% of the operating results for both the Doubletree Guest Suites Times Square and the Hilton San Diego Bayfront.
(2)	Other Adjustments for the year ended December 31, 2011 include: a total of $4.1 million in amortization of lease intangibles at the Doubletree Guest Suites Times Square, Hilton Times Square, and JW Marriott New Orleans; a total of $2.8 million in non-cash straightline lease expense at the Doubletree Guest Suites Times Square, Hilton San Diego Bayfront, Hilton Times Square and JW Marriott New Orleans; and a total of $0.1 million in management company transition costs at the Hilton Times Square.
(3)	Hotel EBITDA for the year ended December 31, 2011 is impacted by a total of $0.6 million in property tax credits net of (assessments) received at the following hotels: Doubletree Guest Suites Times Square $(112,000); Embassy Suites Chicago $177,000; Embassy Suites La Jolla $2,000; Fairmont Newport Beach $485,000; Hilton North Houston $123,000; Hyatt Regency Newport Beach $31,000; Kahler Grand $(1,000); Marriott Houston $(33,000); Marriott Portland $48,000; Marriott Rochester $(2,000); Renaissance Harborplace $157,000; Renaissance Orlando at SeaWorld ® $(9,000); Renaissance Washington DC $(54,000); and Renaissance Westchester $(212,000).
(4)	Comparable Portfolio for the year ended December 31, 2011 includes all hotels in which the Company has interests as of September 30, 2012. Includes prior ownership results and the Company’s pro forma adjustments related to non-cash amortization of lease intangibles, non-cash straightline lease expense, interest expense and depreciation expense as applicable for the Doubletree Guest Suites Times Square acquired by the Company on January 14, 2011, the JW Marriott New Orleans acquired by the Company on February 15, 2011, the Hilton San Diego Bayfront acquired by the Company on April 15, 2011, the Hyatt Chicago Magnificent Mile acquired by the Company on June 4, 2012, and the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired by the Company on July 19, 2012.
(5)	Includes prior ownership results and the Company’s pro forma adjustments related to non-cash amortization of lease intangibles, non-cash straightline lease expense, interest expense and depreciation expense as applicable for the Doubletree Guest Suites Times Square acquired by the Company on January 14, 2011, the JW Marriott New Orleans acquired by the Company on February 15, 2011, the Hilton San Diego Bayfront acquired by the Company on April 15, 2011, the Hyatt Chicago Magnificent Mile acquired by the Company on June 4, 2012, and the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired by the Company on July 19, 2012.

APPENDIX Page 73

Supplemental Financial Information – Unaudited
November 1, 2012

2013 Marriott Accounting Conversion

Currently, the Company’s 10 Marriott-managed hotels report information to the Company on a 13-period basis. Beginning in 2013, Marriott plans to convert its accounting to a standard 12-month calendar. The following details the approximate adjustments that would be required to convert the Company’s 2011 Comparable Portfolio Total Revenue as reported to a standard 12-month calendar (in thousands):

	Q1			Q2			Q3			Q4			Full Year
Total Revenue as reported (1)	$	184,718	21.9%	$	217,876	25.8%	$	204,808	24.3%	$	236,490	28.0%	$	843,892	100%
Marriott-managed adjustment (2)	4,125			5,550			6,306			(15,245)			736
Total Revenue as adjusted	$	188,843	22.3%	$	223,426	26.5%	$	211,114	25.0%	$	221,245	26.2%	$	844,628	100%

(1)

Includes the Company’s ownership results and prior ownership results for the pro forma 30 hotel portfolio held for investment by the Company as of September 30, 2012.

(2)

Includes the adjustments needed to convert the Company’s 2011 Total Revenue as reported for its pro forma 30 hotel portfolio from a 13-period basis to a standard 12-month calendar basis. Due to the fact that Marriott’s 2011 fiscal year ended on December 30, 2011, the conversion to a standard 12-month calendar basis adds $0.7 million in total revenue to move the day of December 31, 2011 from the 2012 fiscal year back to the 2011 calendar year.

APPENDIX Page 74