Sunstone Hotel Investors (SHO) 8-K Sunstone Hotel Investors Reports Results for Fourth Quarter and Full Year 2012

Exhibit 99.2

Supplemental Financial Information For the quarter and year ended December 31, 2012 February 19, 2013

Supplemental Financial Information – Unaudited February 19, 2013

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 Q4 2012 – Q4 2011	9
Consolidated Statements of Operations Q4 & YTD 2012/2011	11
Reconciliation of Net Income to EBITDA and Adjusted EBITDA Q4 & YTD 2012/2011	12
Reconciliation of Net Income to FFO and Adjusted FFO Q4 & YTD 2012/2011	13
Pro Forma Consolidated Statements of Operations Q4 2012 – Q4 2011	14
EARNINGS GUIDANCE FOR Q1 AND FULL YEAR 2013	15
Earnings Guidance for Q1 and FY 2013	16
Reconciliation of Net Income to Adjusted EBITDA and Adjusted FFO Q1 & FY 2013	18
CAPITALIZATION	19
Comparative Capitalization Q4 2012 – Q4 2011	20
Consolidated Debt Summary Schedule	21
Consolidated Amortization and Debt Maturity Schedule	22
PROPERTY-LEVEL DATA	23
PROPERTY-LEVEL OPERATING STATISTICS	25
Q1 2012/2011	26

Supplemental Financial Information – Unaudited February 19, 2013

Q2 2012/2011	27
Q3 2012/2011	28
Q4 2012/2011	29
FY 2012/2011	30
OPERATING STATISTICS BY BRAND & GEOGRAPHY	31
Comparable Portfolio Operating Statistics by Brand Q4 & FY 2012/2011	32
Comparable Portfolio Property-Level FY 2012 EBITDA Contribution by Brand	33
Comparable Portfolio Operating Statistics by Region Q4 & FY 2012/2011	34
PROPERTY-LEVEL EBITDA & EBITDA MARGINS	35
Property-Level EBITDA Q4 & FY 2012/2011	36
Property-Level EBITDA Margins Q4 & FY 2012/2011	37
APPENDIX	38
Reconciliation of Pro Forma Net Income (Loss) to EBITDA and Adjusted EBITDA	39
Property-Level EBITDA Reconciliation	51
2013 Marriott Accounting Conversion	66

Supplemental Financial Information – Unaudited February 19, 2013

CORPORATE PROFILE, FINANCIAL DISCLOSURES,
AND SAFE HARBOR

CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR Page 3  

Supplemental Financial Information – Unaudited February 19, 2013

About Sunstone

Sunstone Hotel Investors, Inc. (NYSE:SHO) is a lodging real estate investment trust (REIT) that, as of February 19, 2013, has interests in 26 hotels held for investment comprised of 11,632 rooms. Sunstone’s hotels are primarily in the upper upscale segment and are 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. Our goal is to improve the quality and scale of our portfolio while methodically deleveraging our balance sheet. As demand for lodging generally fluctuates with the overall economy (we refer to these changes in demand as the lodging cycle), 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
Chief Executive Officer
(949) 382-3012

John Arabia
President
(949) 382-3008

Bryan Giglia
Chief Financial Officer
(949) 382-3036

CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR Page 4  

Supplemental Financial Information – Unaudited February 19, 2013

Forward-Looking Statement

This supplemental 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 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 February 19, 2013, 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 February 19, 2013

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, income tax provisions 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 February 19, 2013

Our 26 comparable hotels include all hotels held for investment by the Company as of December 31, 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 February 19, 2013

CORPORATE FINANCIAL INFORMATION

CORPORATE FINANCIAL INFORMATION Page 8  

Supplemental Financial Information – Unaudited February 19, 2013

Condensed Consolidated Balance Sheets

Q4 2012 – Q4 2011

(In thousands)	December 31, 2012 (1)		September 30, 2012 (2)		June 30, 2012 (3)		March 31, 2012 (4)		December 31, 2011 (5)
Assets
Investment in hotel properties:
Land	$	260,939	$	268,093	$	262,009	$	265,108	$	265,108
Buildings & improvements	2,541,024		2,687,110		2,710,028		2,646,951		2,639,867
Furniture, fixtures, & equipment	329,770		351,014		352,567		348,308		342,880
Other	217,116		201,826		200,824		193,507		187,591
	3,348,849		3,508,043		3,525,428		3,453,874		3,435,446
Less accumulated depreciation & amortization	(666,972)		(707,361)		(715,019)		(692,868)		(657,620)
	2,681,877		2,800,682		2,810,409		2,761,006		2,777,826
Other real estate investments:
Land	-		1,600		2,768		2,768		2,768
Buildings & improvements	-		8,193		9,503		9,503		9,481
Furniture, fixtures, & equipment	-		6,586		6,078		5,928		5,904
Other	-		337		729		305		250
Less accumulated depreciation	-		(6,861)		(7,021)		(6,781)		(6,544)
	-		9,855		12,057		11,723		11,859
Other assets, net	47,238		52,394		45,793		45,563		47,702
Current assets:
Cash and cash equivalents	157,217		164,469		204,549		126,199		150,533
Restricted cash	78,394		76,790		73,306		71,991		67,898
Other current assets, net	171,949		40,752		90,290		48,249		45,422
Total assets	$	3,136,675	$	3,144,942	$	3,236,404	$	3,064,731	$	3,101,240
*Footnotes on following page

CORPORATE FINANCIAL INFORMATION Page 9  

Supplemental Financial Information – Unaudited February 19, 2013

Condensed Consolidated Balance Sheets
Q4 2012 – Q4 2011 (cont.)

(In thousands)	December 31, 2012 (1)		September 30, 2012 (2)		June 30, 2012 (3)		March 31, 2012 (4)		December 31, 2011 (5)
Liabilities
Current liabilities:
Current portion of notes payable	$	18,726	$	19,849	$	21,448	$	54,141	$	53,935
Exchangeable senior notes, less discount (6)	57,997		57,730		57,464		57,205		-
Other current liabilities	123,282		101,909		145,717		85,830		92,846
Total current liabilities	200,005		179,488		224,629		197,176		146,781
Notes payable, less current portion	1,286,666		1,318,102		1,396,980		1,449,246		1,455,177
Exchangeable senior notes, less discount (6)	-		-		-		-		61,365
Capital lease obligations, less current portion	15,621		15,630		15,636		-		-
Other liabilities	15,070		14,789		13,810		13,284		12,623
Total liabilities	1,517,362		1,528,009		1,651,055		1,659,706		1,675,946
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		1,352		1,176		1,173
Additional paid in capital	1,493,397		1,492,528		1,491,639		1,313,581		1,312,566
Retained earnings	158,376		147,329		108,600		97,052		110,580
Cumulative dividends	(475,144)		(467,707)		(460,270)		(452,833)		(445,396)
Accumulated other comprehensive loss	(5,335)		(4,740)		(4,799)		(4,916)		(4,916)
Total stockholders’ equity	1,463,896		1,460,012		1,427,772		1,245,310		1,265,257
Non-controlling interest in consolidated joint ventures	55,417		56,921		57,577		59,715		60,037
Total equity	1,519,313		1,516,933		1,485,349		1,305,025		1,325,294
Total liabilities and equity	$	3,136,675	$	3,144,942	$	3,236,404	$	3,064,731	$	3,101,240
(1) As presented on Form 10-K to be filed in February 2013.
(2) As presented on Form 10-Q filed November 6, 2012.
(3) As presented on Form 10-Q filed August 7, 2012.
(4) As presented on Form 10-Q filed May 3, 2012.
(5) As presented on Form 10-K filed February 28, 2012.
(6) Face value of $58.0 million.

CORPORATE FINANCIAL INFORMATION Page 10

Supplemental Financial Information – Unaudited February 19, 2013

Consolidated Statements of Operations
Q4 & YTD 2012/2011

	Three Months Ended December 31,				Years Ended December 31,
(In thousands, except per share data)	2012		2011		2012		2011
Revenues
Room	$	160,817	$	147,073	$	576,146	$	501,183
Food and beverage	57,798		55,635		200,810		175,103
Other operating	14,352		12,938		52,128		45,508
Total revenues	232,967		215,646		829,084		721,794
Operating expenses
Room	40,910		37,338		147,932		128,225
Food and beverage	39,333		37,702		139,106		126,139
Other operating	4,391		4,007		16,162		14,004
Advertising and promotion	12,096		11,368		42,474		37,226
Repairs and maintenance	9,251		8,658		32,042		29,067
Utilities	6,760		7,153		25,596		25,537
Franchise costs	8,644		7,493		30,067		25,595
Property tax, ground lease and insurance	16,587		16,417		66,830		58,010
Property general and administrative	26,229		25,049		94,642		85,293
Corporate overhead	5,430		4,766		24,316		25,453
Depreciation and amortization	34,339		31,126		130,907		113,708
Impairment loss	-		-		-		10,862
Total operating expenses	203,970		191,077		750,074		679,119
Operating income	28,997		24,569		79,010		42,675
Equity in earnings of unconsolidated joint ventures	-		-		-		21
Interest and other income	142		145		297		3,115
Interest expense	(18,721)		(20,051)		(76,821)		(74,195)
Loss on extinguishment of debt	-		-		(191)		-
Gain on remeasurement of equity interests	-		-		-		69,230
Income before income taxes and discontinued operations	10,418		4,663		2,295		40,846
Income tax provision	(1,148)		-		(1,148)		-
Income from continuing operations	9,270		4,663		1,147		40,846
Income from discontinued operations	1,844		2,925		48,410		40,453
Net income	11,114		7,588		49,557		81,299
Income from consolidated joint venture attributable to non-controlling interest	(67)		(99)		(1,761)		(312)
Distributions to non-controlling interest	(7)		(8)		(31)		(30)
Preferred stock dividends	(7,437)		(7,437)		(29,748)		(27,321)
Undistributed income allocated to unvested restricted stock compensation	(41)		(1)		(203)		(636)
Income available to common stockholders	$	3,562	$	43	$	17,814	$	53,000
Basic per share amounts:
Income (loss) from continuing operations available (attributable) to common stockholders	$	0.01	$	(0.02)	$	(0.24)	$	0.11
Income from discontinued operations	0.02		0.02		0.38		0.34
Basic income available to common stockholders per common share	$	0.03	$	-	$	0.14	$	0.45
Diluted per share amounts:
Income (loss) from continuing operations available (attributable) to common stockholders	$	0.01	$	(0.02)	$	(0.24)	$	0.11
Income from discontinued operations	0.02		0.02		0.38		0.34
Diluted income available to common stockholders per common share	$	0.03	$	-	$	0.14	$	0.45
Weighted average common shares outstanding:
Basic	135,237		117,265		127,027		117,206
Diluted	135,237		117,265		127,027		117,206

CORPORATE FINANCIAL INFORMATION Page 11  

Supplemental Financial Information – Unaudited February 19, 2013

Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Q4 & YTD 2012/2011

	Three Months Ended				Years Ended
	December 31,				December 31,
(In thousands)	2012		2011		2012		2011
Net income	$	11,114	$	7,588	$	49,557	$	81,299
Operations held for investment:
Depreciation and amortization	34,339		31,126		130,907		113,708
Amortization of lease intangibles	1,143		1,029		4,319		3,979
Interest expense	17,757		18,252		71,664		67,319
Amortization of deferred financing fees	886		944		3,690		3,138
Write-off of deferred financing fees	-		21		3		21
Non-cash interest related to discount on Senior Notes	267		270		1,058		1,062
Non-cash interest related to (gain) loss on derivatives	(189)		564		406		2,655
Income tax provision	1,148		-		1,148		-
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest	(67)		(99)		(1,761)		(312)
Depreciation and amortization	(1,424)		(1,416)		(5,685)		(4,014)
Interest expense	(549)		(557)		(2,252)		(1,562)
Amortization of deferred financing fees	(56)		(57)		(224)		(160)
Non-cash interest related to gain (loss) on derivative	-		1		(1)		(31)
Unconsolidated joint ventures:
Depreciation and amortization	-		-		-		3
Discontinued operations:
Depreciation and amortization	2,182		3,762		13,164		16,188
Amortization of lease intangibles	-		7		14		28
Interest expense	380		2,205		6,231		9,191
Amortization of deferred financing fees	7		24		74		104
Write-off of deferred financing fees	-		42		185		42
EBITDA	66,938		63,706		272,497		292,658
Operations held for investment:
Amortization of deferred stock compensation	812		575		3,466		2,745
Non-cash straightline lease expense	694		696		2,777		2,398
Capital lease obligation interest - cash ground rent	(351)		-		(819)		-
(Gain) loss on sale of assets	(4)		(10)		18		(83)
Gain on remeasurement of equity interests	-		-		-		(69,230)
Loss on extinguishment of debt	-		-		191		-
Closing costs - completed acquisitions	-		31		1,965		3,403
Impairment loss	-		-		-		10,862
Lawsuit settlement costs, net	-		-		158		1,553
Prior year property tax and CAM adjustments, net	-		-		621		-
Hotel laundry closing costs	199		-		623		-
Non-controlling interests:
Non-cash straightline lease expense	(111)		(111)		(450)		(354)
Prior year property tax adjustments, net	-		-		(202)		-
Unconsolidated joint ventures:
Amortization of deferred stock compensation	-		-		-		2
Discontinued operations:
Gain on sale of assets, net	-		(946)		(38,292)		(14,912)
Impairment loss	-		-		-		1,495
Gain on extinguishment of debt	-		-		-		(18,145)
Lawsuit settlement (reversal) costs	-		-		(48)		67
	1,239		235		(29,992)		(80,199)
Adjusted EBITDA	$	68,177	$	63,941	$	242,505	$	212,459

CORPORATE FINANCIAL INFORMATION	Page 12
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Supplemental Financial Information – Unaudited February 19, 2013

Reconciliation of Net Income to FFO and Adjusted FFO
Q4 & YTD 2012/2011

	Three Months Ended				Years Ended
	December 31,				December 31,
(In thousands)	2012		2011		2012		2011
Net income	$	11,114	$	7,588	$	49,557	$	81,299
Preferred stock dividends	(7,437)		(7,437)		(29,748)		(27,321)
Operations held for investment:
Real estate depreciation and amortization	34,005		30,828		129,668		112,539
Amortization of lease intangibles	1,143		1,029		4,319		3,979
(Gain) loss on sale of assets	(4)		(10)		18		(83)
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest	(67)		(99)		(1,761)		(312)
Real estate depreciation and amortization	(1,424)		(1,416)		(5,685)		(4,014)
Discontinued operations:
Real estate depreciation and amortization	2,182		3,762		13,164		16,188
Amortization of lease intangibles	-		7		14		28
Gain on sale of assets, net	-		(946)		(38,292)		(14,912)
FFO	39,512		33,306		121,254		167,391
Operations held for investment:
Non-cash straightline lease expense	694		696		2,777		2,398
Write-off of deferred financing fees	-		21		3		21
Non-cash interest related to (gain) loss on derivatives	(189)		564		406		2,655
Gain on remeasurement of equity interests	-		-		-		(69,230)
Loss on extinguishment of debt	-		-		191		-
Closing costs - completed acquisitions	-		31		1,965		3,403
Impairment loss	-		-		-		10,862
Lawsuit settlement costs, net	-		-		158		1,553
Prior year property tax and CAM adjustments, net	-		-		621		-
Hotel laundry closing costs	199		-		623		-
Income tax provision	1,148		-		1,148		-
Non-controlling interests:
Non-cash straightline lease expense	(111)		(111)		(450)		(354)
Non-cash interest related to gain (loss) on derivative	-		1		(1)		(31)
Prior year property tax adjustments, net	-		-		(202)		-
Discontinued operations:
Write-off of deferred financing fees	-		42		185		42
Impairment loss	-		-		-		1,495
Gain on extinguishment of debt	-		-		-		(18,145)
Lawsuit settlement (reversal) costs	-		-		(48)		67
	1,741		1,244		7,376		(65,264)
Adjusted FFO	$	41,253	$	34,550	$	128,630	$	102,127
FFO per diluted share	$	0.29	$	0.28	$	0.95	$	1.43
Adjusted FFO per diluted share	$	0.30	$	0.29	$	1.01	$	0.87
Basic weighted average shares outstanding	135,237		117,265		127,027		117,206
Shares associated with unvested restricted stock awards	385		-		274		84
Diluted weighted average shares outstanding (1)	135,622		117,265		127,301		117,290

(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 $0.29 and $0.30, respectively, for the three months ended December 31, 2012 and 2011, and $0.97 and $1.43, respectively, for the years ended December 31, 2012 and 2011. On an “as-converted” basis,  Adjusted FFO per diluted share is $0.31 for both the three months ended December 31, 2012 and 2011, and $1.02 and $0.89, respectively, for the years ended December 31, 2012 and 2011.

CORPORATE FINANCIAL INFORMATION	Page 13
­

Supplemental Financial Information – Unaudited February 19, 2013

Pro Forma Consolidated Statements of Operations
Q4 2012 – Q4 2011

	Three Months Ended (1)
(Unaudited and in thousands)	Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,
	2012		2012		2012		2012		2011
Revenues
Room	$	160,817	$	148,210	$	157,204	$	125,119	$	156,147
Food and beverage	57,798		44,066		53,332		47,761		57,067
Other operating	14,352		13,678		12,838		12,308		13,522
Total revenues	232,967		205,954		223,374		185,188		226,736
Operating Expenses
Room	40,910		38,307		37,474		35,304		39,415
Food and beverage	39,333		32,943		34,720		33,523		38,594
Other expenses	83,958		77,594		79,720		75,007		84,392
Corporate overhead	5,430		6,114		7,575		5,198		4,766
Depreciation and amortization	34,339		34,381		33,777		33,941		34,185
Total operating expenses	203,970		189,339		193,266		182,973		201,352
Operating Income	28,997		16,615		30,108		2,215		25,384
Interest income and other income	829		706		761		751		742
Interest expense	(17,626)		(18,217)		(18,440)		(18,179)		(18,822)
Income (loss) before income taxes and discontinued operations	12,200		(896)		12,429		(15,213)		7,304
Income tax provision	(1,148)		-		-		-		-
Income (loss) from continuing operations	11,052		(896)		12,429		(15,213)		7,304
Income from discontinued operations	1,844		42,602		2,596		1,368		2,925
Net Income (Loss)	$	12,896	$	41,706	$	15,025	$	(13,845)	$	10,229
Adjusted EBITDA (2)	$	64,451	$	51,663	$	66,839	$	36,435	$	60,142

(1)   Includes the Company’s ownership results and prior ownership results for the pro forma 26 hotel portfolio held for investment by the Company as of December 31, 2012. Excludes the following: interest income on the $90.0 million Royal Palm mortgage-secured purchase money loan due to the loan’s sale in October 2011; interest expense on the mortgage loan secured by the Renaissance Long Beach due to its repayment in April 2012; and interest expense and loss on extinguishment of debt on the Senior Notes due to their repayments in February 2012 and January 2013. Includes the 11% dividend on the $25.0 million preferred equity investment that the Company retained on the disposition of the four-hotel portfolio (Kahler Grand, Kahler Inn & Suites, Marriott Rochester and Residence Inn by Marriott Rochester) sold in January 2013.

(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 February 19, 2013

EARNINGS GUIDANCE FOR Q1 AND FULL YEAR 2013

EARNINGS GUIDANCE FOR Q1 AND FULL YEAR 2013 Page 15

Supplemental Financial Information – Unaudited February 19, 2013

Earnings Guidance for Q1 and FY 2013

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 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 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 2013.  The Company expects to apply its remaining net operating loss carryforwards to reduce taxable income in 2013.  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 one-time expenses and added them back to Adjusted FFO.

For the first quarter of 2013, the Company expects:

Metric	Quarter Ended March 31, 2013 Guidance
Comparable Hotel RevPAR	+2.0% - 3.0%
Net Loss ($ millions)	$(9) - $(7)
Adjusted EBITDA ($ millions)	$36 - $38
Adjusted FFO ($ millions)	$11 - $13
Adjusted FFO per diluted share	$0.07 - $0.09
Diluted Weighted Average Shares Outstanding	151,000,000

*Footnotes on following page.

EARNINGS GUIDANCE FOR Q1 AND FULL YEAR 2013 Page 16

Supplemental Financial Information – Unaudited February 19, 2013

Earnings Guidance for Q1 and FY 2013

For the full year 2013, the Company expects:

Metric	Year Ended December 31, 2013 Guidance
Comparable Hotel RevPAR	+3.5% - 5.5%
Net Income ($ millions)	$40 - $52
Adjusted EBITDA ($ millions)	$224 - $236
Adjusted FFO ($ millions)	$132 - $144
Adjusted FFO per diluted share	$0.84 - $0.92
Diluted Weighted Average Shares Outstanding	157,000,000

First quarter and full year 2013 guidance is based in part on the following assumptions:

·No impact from the reinvestment of currently available cash.

oWhile no assurances can be made as to the timing, amount, valuation or nature of future hotel investments, the Company plans to invest between $250.0 million and $300.0 million of its current cash balance towards hotel acquisitions during 2013. Assuming acquisitions are completed at current market multiples (between 13.0x and 14.0x 2013 EBITDA), and assuming such acquisitions are unencumbered of debt, such acquisitions would be expected to generate between $18.0 million and $23.0 million of additional Adjusted EBITDA and approximately $0.11 to $0.15 of additional Adjusted FFO per diluted share on a full year, pro forma basis. The Company will provide information regarding the timing and current year earnings impact of any hotel investments when and if such investments are consummated.

·The issuance of 22,000,000 shares of common stock on February 1, 2013.

·The redemption of all 7,050,000, shares of the Company’s Series A Preferred Stock on March 1, 2013.

·Full year capital investment of $100.0 million to $120.0 million.

·Hotel revenue disruption of $8.0 million to $10.0 million related to renovation projects, with approximately $6.0 million to $7.0 million of renovation disruption occurring in the first quarter (primarily related to renovations at the Hilton Times Square and Hyatt Chicago Magnificent Mile).

·First quarter renovation-related hotel RevPAR disruption of approximately 475 to 500 basis points.

·Full year renovation-related hotel RevPAR disruption of approximately 100 to 125 basis points.

·Full year comparable Hotel EBITDA Margin expansion of approximately 50 to 100 basis points.

·Full year corporate overhead expense (excluding stock amortization and one-time expenses related to future acquisition closing costs) of $21.0 million to $22.0 million.

·Full year interest expense of approximately $70.0 million to $72.0 million, including $3.0 million in amortization of deferred financing fees.

·Full year preferred dividends of approximately $18.0 million for the Series C cumulative convertible redeemable preferred stock, the Series D cumulative redeemable preferred stock and the Series A Preferred Stock through the March 1, 2013 redemption date.

EARNINGS GUIDANCE FOR Q1 AND FULL YEAR 2013 Page 17

Supplemental Financial Information – Unaudited February 19, 2013

Reconciliation of Net Income to Adjusted EBITDA and Adjusted FFO
Q1 & FY 2013

Reconciliation of Net Loss to Adjusted EBITDA

	Quarter Ended				Year Ended
	March 31, 2013				December 31, 2013
	Low		High		Low		High
Net loss (1)	$	(9,100)	$	(7,100)	$	40,400	$	52,400
Depreciation and amortization	27,500		27,500		110,000		110,000
Amortization of lease intangibles	1,200		1,200		5,000		5,000
Interest expense	16,450		16,450		68,000		68,000
Amortization of deferred financing fees	800		800		3,000		3,000
Non-controlling interests	(3,000)		(3,000)		(11,000)		(11,000)
Amortization of deferred stock compensation	1,300		1,300		5,000		5,000
Income tax provision	-		-		2,000		2,000
Capital lease obligation interest - cash ground rent	(350)		(350)		(1,400)		(1,400)
Non-cash straightline lease expense	700		700		3,000		3,000
Adjusted EBITDA	$	35,500	$	37,500	$	224,000	$	236,000

Reconciliation of Net Loss to Adjusted FFO

Net loss (1)	$	(9,100)	$	(7,100)	$	40,400	$	52,400
Preferred stock dividends	(6,300)		(6,300)		(18,000)		(18,000)
Real estate depreciation and amortization	27,200		27,200		108,600		108,600
Non-controlling interests	(2,500)		(2,500)		(8,700)		(8,700)
Amortization of lease intangibles	1,200		1,200		5,000		5,000
Income tax provision	-		-		2,000		2,000
Non-cash straightline lease expense	700		700		3,000		3,000
Adjusted FFO	$	11,200	$	13,200	$	132,300	$	144,300
Adjusted FFO per diluted share	$	0.07	$	0.09	$	0.84	$	0.92
Diluted weighted average shares outstanding	151,000		151,000		157,000		157,000

(1)  Net loss does not include the gain on sale from the Rochester portfolio.

EARNINGS GUIDANCE FOR Q1 AND FULL YEAR 2013 Page 18

Supplemental Financial Information – Unaudited February 19, 2013

CAPITALIZATION

CAPITALIZATION Page 19

Supplemental Financial Information – Unaudited February 19, 2013

Comparative Capitalization
Q4 2012 – Q4 2011

	Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,
	2012		2012		2012		2012		2011
(In thousands, except per share data)
Common Share Price & Dividends
At the end of the quarter	$	10.71	$	11.00	$	10.99	$	9.74	$	8.15
High during quarter ended	$	10.97	$	11.70	$	10.99	$	10.00	$	8.15
Low during quarter ended	$	9.34	$	9.68	$	9.27	$	8.06	$	5.07
Common dividends per share	$	-	$	-	$	-	$	-	$	-
Common Shares & Units
Common shares outstanding (1)	158,777		136,777		136,783		119,108		118,672
Units outstanding	-		-		-		-		-
Total common shares and units outstanding	158,777		136,777		136,783		119,108		118,672
Capitalization
Market value of common equity	$	1,700,502	$	1,504,547	$	1,503,245	$	1,160,112	$	967,177
Liquidation value of preferred equity - Series A (2)	-		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 (3)	1,305,392		1,395,951		1,476,428		1,529,131		1,567,112
Consolidated total capitalization	3,220,894		3,291,748		3,370,923		3,080,493		2,925,539
Non-controlling interest in consolidated debt	(58,681)		(58,878)		(59,072)		(59,263)		(59,452)
Pro rata total capitalization	$	3,162,213	$	3,232,870	$	3,311,851	$	3,021,230	$	2,866,087
Consolidated debt to total capitalization	40.5%		42.4%		43.8%		49.6%		53.6%
Pro rata debt to pro rata total capitalization	39.4%		41.4%		42.8%		48.7%		52.6%
Consolidated debt and preferred equity to total capitalization	47.2%		54.3%		55.4%		62.3%		66.9%
Pro rata debt and preferred equity to total capitalization	46.2%		53.5%		54.6%		61.6%		66.3%

(1)	Reflects shares outstanding at respective dates. Common shares outstanding at December 31, 2012 includes the effects of the Company’s issuance of 22,000,000 shares in February 2013.
(2)	Reflects the Company’s intention to redeem all 7,050,000 shares of its Series A preferred stock on March 1, 2013.
(3)	Consolidated debt at December 31, 2012 does not include debt secured by the Kahler Grand and the commercial laundry facility, which was classified as held for sale and included in discontinued operations as of December 31, 2012 due to their sale in January 2013.  It also excludes the Company’s remaining balance of $58.0 million of its exchangeable senior notes which were repurchased in January 2013.  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.

CAPITALIZATION Page 20  

Supplemental Financial Information – Unaudited February 19, 2013

Consolidated Debt Summary Schedule

(In thousands)		Interest Rate /	Maturity	December 31, 2012		Subsequent		March 1, 2013		Balance At
Debt	Collateral	Spread	Date	Balance		Principal Repayments(1)		Balance		Maturity
Fixed Rate Debt
Secured Mortgage Debt	Marriott Houston	5.34%	5/1/2015	$	22,267	$	-	$	22,267	$	20,645
Secured Mortgage Debt	Marriott Park City	5.34%	5/1/2015	14,516		-		14,516		13,458
Secured Mortgage Debt	Marriott Philadelphia	5.34%	5/1/2015	26,301		-		26,301		24,385
Secured Mortgage Debt	Marriott Tysons Corner	5.34%	5/1/2015	43,451		-		43,451		40,285
Secured Mortgage Debt	JW Marriott New Orleans	5.45%	9/1/2015	40,600		-		40,600		38,094
Secured Mortgage Debt	Renaissance Harborplace	5.13%	1/1/2016	95,700		-		95,700		84,919
Secured Mortgage Debt	Hilton North Houston	5.66%	3/11/2016	32,317		-		32,317		30,522
Secured Mortgage Debt	Renaissance Orlando at SeaWorld®	5.52%	7/1/2016	80,168		-		80,168		72,210
Secured Mortgage Debt	Embassy Suites Chicago	5.58%	3/1/2017	72,476		-		72,476		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	68,761		-		68,761		62,179
Secured Mortgage Debt	Hilton Times Square	4.97%	11/1/2020	89,596		-		89,596		75,976
Secured Mortgage Debt	Renaissance Washington DC	5.95%	5/1/2021	128,515		-		128,515		106,580
Exchangeable Senior Notes	Guaranty	4.60%	7/15/2027	58,000		(58,000)		-		-
Total Fixed Rate Debt				948,668		(58,000)		890,668		810,830
Secured Mortgage Debt	Hilton San Diego Bayfront	L + 3.25%	4/15/2016	234,724		-		234,724		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				414,724		-		414,724		390,506
TOTAL CONSOLIDATED DEBT				$	1,363,392	$	(58,000)	$	1,305,392	$	1,201,336
Preferred Stock
Series A cumulative redeemable preferred		8.00%	perpetual	$	176,250	$	(176,250)	$	-
Series C cumulative convertible redeemable preferred		6.45%	perpetual	$	100,000	$	-	$	100,000
Series D cumulative redeemable preferred		8.00%	perpetual	$	115,000	$	-	$	115,000
Debt Statistics
% Fixed Rate Debt				69.6%				68.2%
% Floating Rate Debt				30.4%				31.8%
Average Interest Rate (2)				4.92%				4.94%
Weighted Average Maturity of Debt				5.1 years				4.7 years

(1) Subsequent Principal Repayments exclude scheduled loan amortization payments on the Company’s debt and include the repurchase of the Company’s remaining balance of $58.0 million of its exchangeable senior notes in January 2013, and the Company’s planned redemtpion of all 7,050,000 shares of its Series A preferred stock on March 1, 2013.

(2) Average Interest Rate on variable-rate debt obligations is calculated based on the variable rates at December 31, 2012 and includes the effect of the Company’s interest rate derivative agreements.

CAPITALIZATION Page 21  

Supplemental Financial Information – Unaudited February 19, 2013

Consolidated Amortization and Debt Maturity Schedule

as of December 31, 2012 (1)

(1)	Principal Payment at Maturity and Scheduled Principal Amortization do not include the debt secured by the Kahler Grand and the commercial laundry facility, which have been classified as held for sale and included in discontinued operations as of December 31, 2012 due to their sale in January 2013, and the Senior Notes due to their repurchase by the Company in January 2013.
(2)	Percent of Current Total Capitalization is calculated by dividing the sum of scheduled principal amortization and maturity payments by the December 31, 2012 pro rata total capitalization as presented on page 20.

CAPITALIZATION Page 22  

Supplemental Financial Information – Unaudited
February 19, 2013

PROPERTY-LEVEL DATA

PROPERTY-LEVEL DATA Page 23    

Supplemental Financial Information – Unaudited
February 19, 2013

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	10.23%	75%	Leasehold	2071	2011
2	Renaissance Washington DC	Washington DC	Marriott	807	6.94%	100%	Fee Simple		2005
3	Renaissance Orlando at SeaWorld® (2)	Florida	Marriott	781	6.71%	100%	Fee Simple		2005
4	Renaissance Harborplace	Maryland	Marriott	622	5.35%	100%	Leasehold	2085	2005
5	Renaissance Los Angeles Airport	California	Marriott	499	4.29%	100%	Fee Simple		2007
6	JW Marriott New Orleans (3)	Louisiana	Marriott	496	4.26%	100%	Leasehold	2044 / 2081	2011
7	Hilton North Houston	Texas	Hilton	480	4.13%	100%	Fee Simple		2002
8	Marriott Quincy	Massachusettes	Marriott	464	3.99%	100%	Fee Simple		2007
9	Doubletree Guest Suites Times Square	New York	Hilton	460	3.95%	100%	Leasehold	2127	2011
10	Hilton Times Square	New York	Hilton	460	3.95%	100%	Leasehold	2091	2006
11	Fairmont Newport Beach	California	Fairmont	444	3.82%	100%	Leasehold	2082	2005
12	Hyatt Chicago Magnificent Mile	Illinois	Hyatt	417	3.58%	100%	Leasehold	2097	2012
13	Marriott Boston Long Wharf	Massachusettes	Marriott	412	3.54%	100%	Fee Simple		2007
14	Hyatt Regency Newport Beach	California	Hyatt	403	3.46%	100%	Leasehold	2048	2002
15	Marriott Tysons Corner	Virginia	Marriott	396	3.40%	100%	Fee Simple		2002
16	Marriott Houston	Texas	Marriott	390	3.35%	100%	Fee Simple		2002
17	Renaissance Long Beach	California	Marriott	374	3.22%	100%	Fee Simple		2005
18	Embassy Suites Chicago	Illinois	Hilton	368	3.16%	100%	Fee Simple		2002
19	Hilton Garden Inn Chicago Downtown/Magnificent Mile	Illinois	Hilton	357	3.07%	100%	Fee Simple		2012
20	Renaissance Westchester	New York	Marriott	347	2.98%	100%	Fee Simple		2010
21	Embassy Suites La Jolla	California	Hilton	340	2.92%	100%	Fee Simple		2006
22	Marriott Philadephia	Pennsylvania	Marriott	289	2.48%	100%	Fee Simple		2002
23	Marriott Portland	Oregon	Marriott	249	2.14%	100%	Fee Simple		2000
24	Sheraton Cerritos	California	Starwood	203	1.75%	100%	Leasehold	2087	2005
25	Marriott Park City	Utah	Marriott	199	1.71%	100%	Fee Simple		1999
26	Courtyard by Marriott Los Angeles	California	Marriott	185	1.59%	100%	Leasehold	2096	1999
	Total comparable portfolio			11,632	100%
	Hotels classified as held for sale (4):
	Kahler Grand	Minnesota	Independent	660		100%	Fee Simple		1999
	Kahler Inn & Suites	Minnesota	Independent	271		100%	Fee Simple		1999
	Marriott Rochester	Minnesota	Marriott	202		100%	Fee Simple		1999
	Residence Inn by Marriott Rochester	Minnesota	Marriott	89		100%	Fee Simple		2004
	Total portfolio including hotels held for sale			12,854
	(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.
	(4) Hotels are classified as held for sale and included in discontinued operations as of December 31, 2012 due to their sale in January 2013.

PROPERTY-LEVEL DATA Page 24  

Supplemental Financial Information – Unaudited
February 19, 2013

PROPERTY-LEVEL OPERATING STATISTICS

PROPERTY-LEVEL OPERATING STATISTICS Page 25  

Supplemental Financial Information – Unaudited
February 19, 2013

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	Renaissance Harborplace		140.17		150.61		-6.9%	60.6%	58.5%	3.6%	84.94		88.11		-3.6%
5	Renaissance Los Angeles Airport		115.13		113.46		1.5%	85.4%	79.4%	7.6%	98.32		90.09		9.1%
6	JW Marriott New Orleans (1)		182.86		174.55		4.8%	84.2%	77.5%	8.6%	153.97		135.28		13.8%
7	Hilton North Houston		106.79		101.25		5.5%	79.6%	76.0%	4.7%	85.00		76.95		10.5%
8	Marriott Quincy		146.66		146.53		0.1%	58.0%	45.5%	27.5%	85.06		66.67		27.6%
9	Doubletree Guest Suites Times Square (1)		243.29		237.25		2.5%	95.8%	92.3%	3.8%	233.07		218.98		6.4%
10	Hilton Times Square		226.66		231.02		-1.9%	96.3%	84.9%	13.4%	218.27		196.14		11.3%
11	Fairmont Newport Beach		133.51		126.68		5.4%	70.4%	76.8%	-8.3%	93.99		97.29		-3.4%
12	Hyatt Chicago Magnificent Mile (1)		110.67		104.27		6.1%	65.1%	58.4%	11.5%	72.05		60.89		18.3%
13	Marriott Boston Long Wharf		197.54		186.21		6.1%	81.7%	72.2%	13.2%	161.39		134.44		20.0%
14	Hyatt Regency Newport Beach		120.39		121.46		-0.9%	85.0%	80.7%	5.3%	102.33		98.02		4.4%
15	Marriott Tysons Corner		174.75		178.54		-2.1%	60.2%	52.8%	14.0%	105.20		94.27		11.6%
16	Marriott Houston		100.76		97.76		3.1%	76.3%	56.3%	35.5%	76.88		55.04		39.7%
17	Renaissance Long Beach		138.76		157.50		-11.9%	76.7%	69.4%	10.5%	106.43		109.31		-2.6%
18	Embassy Suites Chicago		146.98		134.23		9.5%	62.2%	61.8%	0.6%	91.42		82.95		10.2%
19	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%
20	Renaissance Westchester		119.77		147.96		-19.1%	71.6%	51.7%	38.5%	85.76		76.50		12.1%
21	Embassy Suites La Jolla		153.84		150.26		2.4%	74.1%	75.7%	-2.1%	114.00		113.75		0.2%
22	Marriott Philadelphia		166.20		161.38		3.0%	60.1%	57.4%	4.7%	99.89		92.63		7.8%
23	Marriott Portland		126.81		121.27		4.6%	76.3%	69.7%	9.5%	96.76		84.53		14.5%
24	Sheraton Cerritos		115.42		116.76		-1.1%	90.1%	66.9%	34.7%	103.99		78.11		33.1%
25	Marriott Park City		218.53		210.17		4.0%	81.7%	88.2%	-7.4%	178.54		185.37		-3.7%
26	Courtyard by Marriott Los Angeles		137.96		134.51		2.6%	95.2%	78.6%	21.1%	131.34		105.72		24.2%
	Comparable Portfolio		$	161.70	$	163.31	-1.0%	75.6%	71.0%	6.5%	$	122.25	$	115.95	5.4%
	(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
February 19, 2013

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	Renaissance Harborplace		171.12		183.21		-6.6%	81.6%	75.5%	8.1%	139.63		138.32		0.9%
5	Renaissance Los Angeles Airport		119.46		110.98		7.6%	80.0%	80.4%	-0.5%	95.57		89.23		7.1%
6	JW Marriott New Orleans		188.44		173.28		8.7%	86.2%	86.3%	-0.1%	162.44		149.54		8.6%
7	Hilton North Houston		100.69		106.58		-5.5%	83.9%	68.5%	22.5%	84.48		73.01		15.7%
8	Marriott Quincy		149.28		145.04		2.9%	82.1%	74.3%	10.5%	122.56		107.76		13.7%
9	Doubletree Guest Suites Times Square		364.81		349.79		4.3%	98.8%	98.3%	0.5%	360.43		343.84		4.8%
10	Hilton Times Square		318.75		298.08		6.9%	98.3%	95.4%	3.0%	313.33		284.37		10.2%
11	Fairmont Newport Beach		129.31		127.19		1.7%	79.6%	80.8%	-1.5%	102.93		102.77		0.2%
12	Hyatt Chicago Magnificent Mile (1)		172.94		165.36		4.6%	82.7%	86.6%	-4.5%	143.02		143.20		-0.1%
13	Marriott Boston Long Wharf		281.48		260.10		8.2%	89.8%	89.0%	0.9%	252.77		231.49		9.2%
14	Hyatt Regency Newport Beach		131.69		123.35		6.8%	88.0%	87.4%	0.7%	115.89		107.81		7.5%
15	Marriott Tysons Corner		170.25		170.75		-0.3%	75.3%	79.5%	-5.3%	128.20		135.75		-5.6%
16	Marriott Houston		97.59		93.81		4.0%	83.5%	75.8%	10.2%	81.49		71.11		14.6%
17	Renaissance Long Beach		144.24		136.09		6.0%	79.2%	76.7%	3.3%	114.24		104.38		9.4%
18	Embassy Suites Chicago		205.73		204.94		0.4%	87.8%	85.6%	2.6%	180.63		175.43		3.0%
19	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%
20	Renaissance Westchester		136.64		141.84		-3.7%	76.5%	73.9%	3.5%	104.53		104.82		-0.3%
21	Embassy Suites La Jolla		161.08		149.78		7.5%	80.8%	81.0%	-0.2%	130.15		121.32		7.3%
22	Marriott Philadelphia		169.53		166.22		2.0%	74.3%	76.0%	-2.2%	125.96		126.33		-0.3%
23	Marriott Portland		143.06		136.20		5.0%	86.3%	82.6%	4.5%	123.46		112.50		9.7%
24	Sheraton Cerritos		110.63		111.53		-0.8%	91.9%	87.8%	4.7%	101.67		97.92		3.8%
25	Marriott Park City		102.24		96.05		6.4%	57.7%	46.5%	24.1%	58.99		44.66		32.1%
26	Courtyard by Marriott Los Angeles		143.19		127.86		12.0%	96.7%	81.6%	18.5%	138.46		104.33		32.7%
	Comparable Portfolio		$	183.59	$	176.68	3.9%	83.7%	80.6%	3.8%	$	153.66	$	142.40	7.9%
	(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
February 19, 2013

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	Renaissance Harborplace		162.37		173.86		-6.6%	80.3%	72.7%	10.5%	130.38		126.40		3.2%
5	Renaissance Los Angeles Airport		118.35		111.03		6.6%	87.7%	87.3%	0.5%	103.79		96.93		7.1%
6	JW Marriott New Orleans		133.33		125.25		6.5%	78.4%	75.5%	3.8%	104.53		94.56		10.5%
7	Hilton North Houston		95.14		103.25		-7.9%	83.8%	55.0%	52.4%	79.73		56.79		40.4%
8	Marriott Quincy		143.30		148.01		-3.2%	83.0%	80.3%	3.4%	118.94		118.85		0.1%
9	Doubletree Guest Suites Times Square		347.69		352.68		-1.4%	98.4%	97.8%	0.6%	342.13		344.92		-0.8%
10	Hilton Times Square		296.95		300.70		-1.2%	98.6%	97.4%	1.2%	292.79		292.88		0.0%
11	Fairmont Newport Beach		141.42		142.74		-0.9%	79.9%	74.7%	7.0%	112.99		106.63		6.0%
12	Hyatt Chicago Magnificent Mile (1)		167.22		154.42		8.3%	88.8%	85.3%	4.1%	148.49		131.72		12.7%
13	Marriott Boston Long Wharf		297.27		270.70		9.8%	94.2%	89.2%	5.6%	280.03		241.46		16.0%
14	Hyatt Regency Newport Beach		145.80		146.45		-0.4%	91.4%	91.4%	0.0%	133.26		133.86		-0.4%
15	Marriott Tysons Corner		156.90		156.45		0.3%	68.9%	70.2%	-1.9%	108.10		109.83		-1.6%
16	Marriott Houston		94.62		87.39		8.3%	82.3%	71.2%	15.6%	77.87		62.22		25.2%
17	Renaissance Long Beach		123.54		118.64		4.1%	76.8%	82.3%	-6.7%	94.88		97.64		-2.8%
18	Embassy Suites Chicago		205.86		192.78		6.8%	89.1%	90.3%	-1.3%	183.42		174.08		5.4%
19	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%
20	Renaissance Westchester		136.41		135.81		0.4%	68.9%	74.2%	-7.1%	93.99		100.77		-6.7%
21	Embassy Suites La Jolla		175.58		169.02		3.9%	85.9%	86.9%	-1.2%	150.82		146.88		2.7%
22	Marriott Philadelphia		155.42		154.95		0.3%	68.6%	70.4%	-2.6%	106.62		109.08		-2.3%
23	Marriott Portland		165.29		146.39		12.9%	91.9%	90.0%	2.1%	151.90		131.75		15.3%
24	Sheraton Cerritos		112.70		108.79		3.6%	88.1%	91.6%	-3.8%	99.29		99.65		-0.4%
25	Marriott Park City		107.57		100.94		6.6%	67.3%	67.1%	0.3%	72.39		67.73		6.9%
26	Courtyard by Marriott Los Angeles		147.85		134.91		9.6%	95.1%	95.3%	-0.2%	140.61		128.57		9.4%
	Comparable Portfolio		$	174.52	$	171.46	1.8%	82.5%	79.7%	3.5%	$	143.98	$	136.65	5.4%
	(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
February 19, 2013

Property-Level Operating Statistics

Q4 2012/2011

	Hotels sorted by number of rooms		ADR					Occupancy			RevPAR
			For the Three Months Ended December 31,					For the Three Months Ended December 31,			For the Three Months Ended December 31,
			2012		2011		Variance	2012	2011	Variance	2012		2011		Variance
1	Hilton San Diego Bayfront		$	191.19	$	194.89	-1.9%	77.5%	73.5%	5.4%	$	148.17	$	143.24	3.4%
2	Renaissance Washington DC		202.76		210.94		-3.9%	66.4%	70.7%	-6.1%	134.63		149.13		-9.7%
3	Renaissance Orlando at SeaWorld ®		129.08		134.01		-3.7%	62.4%	66.3%	-5.9%	80.55		88.85		-9.3%
4	Renaissance Harborplace		165.76		163.02		1.7%	67.9%	68.7%	-1.2%	112.55		111.99		0.5%
5	Renaissance Los Angeles Airport		115.04		108.87		5.7%	78.5%	77.8%	0.9%	90.31		84.70		6.6%
6	JW Marriott New Orleans		165.16		145.36		13.6%	81.0%	81.0%	0.0%	133.78		117.74		13.6%
7	Hilton North Houston		97.93		100.81		-2.9%	75.5%	69.0%	9.4%	73.94		69.56		6.3%
8	Marriott Quincy		146.93		151.81		-3.2%	73.6%	71.7%	2.6%	108.14		108.85		-0.6%
9	Doubletree Guest Suites Times Square		457.50		435.60		5.0%	98.6%	97.9%	0.7%	451.10		426.45		5.8%
10	Hilton Times Square		364.26		344.81		5.6%	98.6%	98.0%	0.6%	359.16		337.91		6.3%
11	Fairmont Newport Beach		133.00		134.85		-1.4%	67.8%	57.3%	18.3%	90.17		77.27		16.7%
12	Hyatt Chicago Magnificent Mile (1)		171.99		159.13		8.1%	81.4%	76.9%	5.9%	140.00		122.37		14.4%
13	Marriott Boston Long Wharf		259.86		249.54		4.1%	81.6%	82.9%	-1.6%	212.05		206.87		2.5%
14	Hyatt Regency Newport Beach		122.94		110.28		11.5%	64.0%	78.2%	-18.2%	78.68		86.24		-8.8%
15	Marriott Tysons Corner		164.37		168.13		-2.2%	68.2%	67.2%	1.5%	112.10		112.98		-0.8%
16	Marriott Houston		94.91		93.93		1.0%	74.5%	61.3%	21.5%	70.71		57.58		22.8%
17	Renaissance Long Beach		130.90		122.42		6.9%	70.3%	68.5%	2.6%	92.02		83.86		9.7%
18	Embassy Suites Chicago		194.13		192.38		0.9%	85.2%	78.4%	8.7%	165.40		150.83		9.7%
19	Hilton Garden Inn Chicago Downtown/Magnificent Mile (1)		168.40		167.45		0.6%	86.1%	79.6%	8.2%	144.99		133.29		8.8%
20	Renaissance Westchester		144.82		127.69		13.4%	73.2%	81.9%	-10.6%	106.01		104.58		1.4%
21	Embassy Suites La Jolla		151.93		146.96		3.4%	74.3%	72.7%	2.2%	112.88		106.84		5.7%
22	Marriott Philadelphia		160.35		167.08		-4.0%	71.8%	69.0%	4.1%	115.13		115.29		-0.1%
23	Marriott Portland		141.85		130.40		8.8%	77.7%	79.5%	-2.3%	110.22		103.67		6.3%
24	Sheraton Cerritos		107.44		104.19		3.1%	91.7%	89.3%	2.7%	98.52		93.04		5.9%
25	Marriott Park City		125.58		130.24		-3.6%	53.4%	51.2%	4.3%	67.06		66.68		0.6%
26	Courtyard by Marriott Los Angeles		136.88		123.49		10.8%	93.6%	92.8%	0.9%	128.12		114.60		11.8%
	Comparable Portfolio		$	181.73	$	177.56	2.3%	75.4%	74.5%	1.2%	$	137.02	$	132.28	3.6%
	(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 29  

Supplemental Financial Information – Unaudited
February 19, 2013

Property-Level Operating Statistics

FY 2012/2011

	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,
			2012		2011		Variance	2012	2011	Variance	2012		2011		Variance
1	Hilton San Diego Bayfront (1)		$	206.87	$	195.26	5.9%	80.8%	78.9%	2.4%	$	167.15	$	154.06	8.5%
2	Renaissance Washington DC		203.49		210.20		-3.2%	68.1%	74.0%	-8.0%	138.58		155.55		-10.9%
3	Renaissance Orlando at SeaWorld ®		135.11		132.89		1.7%	73.5%	69.3%	6.1%	99.31		92.09		7.8%
4	Renaissance Harborplace		161.33		168.34		-4.2%	72.2%	68.8%	4.9%	116.48		115.82		0.6%
5	Renaissance Los Angeles Airport		116.86		110.93		5.3%	82.6%	80.9%	2.1%	96.53		89.74		7.6%
6	JW Marriott New Orleans (1)		167.97		154.43		8.8%	82.3%	80.1%	2.7%	138.24		123.70		11.8%
7	Hilton North Houston		100.09		102.91		-2.7%	80.7%	67.0%	20.4%	80.77		68.95		17.1%
8	Marriott Quincy		146.55		148.26		-1.2%	74.1%	68.2%	8.7%	108.59		101.11		7.4%
9	Doubletree Guest Suites Times Square (1)		354.38		345.93		2.4%	97.9%	96.6%	1.3%	346.94		334.17		3.8%
10	Hilton Times Square		302.25		296.11		2.1%	98.0%	94.0%	4.3%	296.21		278.34		6.4%
11	Fairmont Newport Beach		134.41		132.63		1.3%	74.4%	72.4%	2.8%	100.00		96.02		4.1%
12	Hyatt Chicago Magnificent Mile (1)		158.42		149.28		6.1%	79.5%	76.9%	3.4%	125.94		114.80		9.7%
13	Marriott Boston Long Wharf		260.85		244.71		6.6%	86.4%	83.3%	3.7%	225.37		203.84		10.6%
14	Hyatt Regency Newport Beach		131.01		126.16		3.8%	82.1%	84.4%	-2.7%	107.56		106.48		1.0%
15	Marriott Tysons Corner		166.24		167.92		-1.0%	68.1%	67.4%	1.0%	113.21		113.18		0.0%
16	Marriott Houston		96.94		92.93		4.3%	79.2%	66.2%	19.6%	76.78		61.52		24.8%
17	Renaissance Long Beach		134.25		132.34		1.4%	75.3%	73.8%	2.0%	101.09		97.67		3.5%
18	Embassy Suites Chicago		191.50		184.67		3.7%	81.1%	79.1%	2.5%	155.31		146.07		6.3%
19	Hilton Garden Inn Chicago Downtown/Magnificent Mile (1)		165.33		161.12		2.6%	85.0%	77.7%	9.4%	140.53		125.19		12.3%
20	Renaissance Westchester		134.48		136.41		-1.4%	72.5%	71.3%	1.7%	97.50		97.26		0.2%
21	Embassy Suites La Jolla		161.19		154.57		4.3%	78.8%	79.1%	-0.4%	127.02		122.26		3.9%
22	Marriott Philadelphia		162.68		162.87		-0.1%	68.9%	68.3%	0.9%	112.09		111.24		0.8%
23	Marriott Portland		145.25		134.44		8.0%	83.1%	80.5%	3.2%	120.70		108.22		11.5%
24	Sheraton Cerritos		111.51		109.83		1.5%	90.4%	84.0%	7.6%	100.81		92.26		9.3%
25	Marriott Park City		144.79		143.63		0.8%	65.0%	63.1%	3.0%	94.11		90.63		3.8%
26	Courtyard by Marriott Los Angeles		141.50		130.09		8.8%	95.1%	87.2%	9.1%	134.57		113.44		18.6%
	Comparable Portfolio		$	175.78	$	172.63	1.8%	79.2%	76.4%	3.7%	$	139.22	$	131.89	5.6%
	(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 30  

Supplemental Financial Information – Unaudited
February 19, 2013

OPERATING STATISTICS BY BRAND & GEOGRAPHY

OPERATING STATISTICS BY BRAND & GEOGRAPHY Page 31    

Supplemental Financial Information – Unaudited
February 19, 2013

Comparable Portfolio Operating Statistics by Brand

Q4 & FY 2012/2011

		FY12					FY11
		Q-T-D(December)					Q-T-D(December)
	# of Hotels	Occ	ADR		RevPAR		Occ	ADR		RevPAR		RevPAR Change
Marriott	15	71.7%	$	157.68	$	113.06	72.2%	$	155.27	$	112.10	0.9%
Hilton (2)	7	83.9%	$	239.97	$	201.33	80.1%	$	237.45	$	190.20	5.9%
Hyatt (3)	2	72.9%	$	150.81	$	109.94	77.5%	$	134.92	$	104.56	5.1%
Other (4)	2	75.3%	$	123.24	$	92.80	67.3%	$	122.09	$	82.17	12.9%
Comparable Portfolio	26	75.4%	$	181.73	$	137.02	74.5%	$	177.56	$	132.28	3.6%

		FY12					FY11
		Y-T-D(December)					Y-T-D(December)
	# of Hotels	Occ	ADR		RevPAR		Occ	ADR		RevPAR		RevPAR Change
Marriott (1)	15	75.5%	$	157.47	$	118.89	73.1%	$	156.24	$	114.21	4.1%
Hilton (2)	7	85.3%	$	219.26	$	187.03	81.4%	$	214.55	$	174.64	7.1%
Hyatt (3)	2	80.8%	$	144.73	$	116.94	80.6%	$	137.38	$	110.73	5.6%
Other (4)	2	79.4%	$	126.23	$	100.23	76.0%	$	124.73	$	94.79	5.7%
Comparable Portfolio	26	79.2%	$	175.78	$	139.22	76.4%	$	172.63	$	131.89	5.6%

(1)	Marriott includes prior ownership results 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 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 32    

Supplemental Financial Information – Unaudited
February 19, 2013

Comparable Portfolio Property-Level FY 2012 EBITDA Contribution

by Brand

Note: Consolidated FY 2012 Hotel EBITDA of 26 hotel comparable portfolio as of December 31, 2012.

OPERATING STATISTICS BY BRAND & GEOGRAPHY Page 33    

Supplemental Financial Information – Unaudited
February 19, 2013

Comparable Portfolio Operating Statistics by Region

Q4 & FY 2012/2011

		FY12						FY11
		Q-T-D(December)						Q-T-D(December)
	# of Hotels	Occ		ADR		RevPAR		Occ		ADR		RevPAR		RevPAR Change
California	8	75.5	%	$	147.72	$	111.53	73.9	%	$	143.36	$	105.94	5.3%
Other West	4	72.3	%	$	109.01	$	78.81	66.0	%	$	109.10	$	72.01	9.4%
Midwest (2)	3	84.1	%	$	178.07	$	149.76	78.2	%	$	172.50	$	134.90	11.0%
East	11	74.5	%	$	217.25	$	161.85	76.0	%	$	209.91	$	159.53	1.5%
Comparable Portfolio	26	75.4	%	$	181.73	$	137.02	74.5	%	$	177.56	$	132.28	3.6%

		FY12						FY11
		Y-T-D(December)						Y-T-D(December)
	# of Hotels	Occ		ADR		RevPAR		Occ		ADR		RevPAR		RevPAR Change
California (1)	8	80.9	%	$	156.70	$	126.77	79.2	%	$	149.79	$	118.63	6.9%
Other West	4	78.3	%	$	113.80	$	89.11	68.7	%	$	112.69	$	77.42	15.1%
Midwest (2)	3	81.7	%	$	171.25	$	139.91	77.8	%	$	164.55	$	128.02	9.3%
East (3)	11	77.8	%	$	204.77	$	159.31	76.1	%	$	202.89	$	154.40	3.2%
Comparable Portfolio	26	79.2	%	$	175.78	$	139.22	76.4	%	$	172.63	$	131.89	5.6%

(1)	California includes prior ownership results 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 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 34  

Supplemental Financial Information – Unaudited
February 19, 2013

PROPERTY-LEVEL EBITDA & EBITDA MARGINS

PROPERTY-LEVEL EBITDA & EBITDA MARGINS Page 35    

Supplemental Financial Information – Unaudited
February 19, 2013

Property-Level EBITDA
Q4 & FY 2012/2011

	Hotels sorted by number of rooms		For the Three Months Ended December 31,					For the Years Ended December 31,
	(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) (4)		$	8,831	$	8,966	-2%	$	41,510	$	37,491	11%
2	Renaissance Washington DC (4)		5,573		6,824		-18%	16,038		21,648		-26%
3	Renaissance Orlando at SeaWorld ® (4)		2,787		3,482		-20%	14,620		12,085		21%
4	Renaissance Harborplace (4)		3,810		3,577		7%	11,216		10,800		4%
5	Renaissance Los Angeles Airport		1,247		1,046		19%	4,290		3,660		17%
6	JW Marriott New Orleans		3,258		2,589		26%	10,171		8,618		18%
7	Hilton North Houston (4)		1,049		804		30%	4,747		3,282		45%
8	Marriott Quincy		2,909		2,320		25%	7,668		5,989		28%
9	Doubletree Guest Suites Times Square (1) (4)		9,737		8,975		8%	24,107		22,939		5%
10	Hilton Times Square		6,289		6,109		3%	16,491		15,247		8%
11	Fairmont Newport Beach (4)		1,008		427		136%	4,694		4,023		17%
12	Hyatt Chicago Magnificent Mile		1,495		1,691		-12%	4,985		5,393		-8%
13	Marriott Boston Long Wharf		4,876		4,364		12%	16,801		13,012		29%
14	Hyatt Regency Newport Beach (4)		255		687		-63%	4,643		5,152		-10%
15	Marriott Tysons Corner		2,368		2,362		0%	7,232		7,052		3%
16	Marriott Houston (4)		732		253		189%	3,430		1,701		102%
17	Renaissance Long Beach		1,196		1,159		3%	4,767		4,556		5%
18	Embassy Suites Chicago (4)		3,167		1,429		122%	10,315		8,127		27%
19	Hilton Garden Inn Chicago Downtown/Magnificent Mile		2,097		1,832		14%	7,707		6,476		19%
20	Renaissance Westchester (4)		581		771		-25%	1,480		1,801		-18%
21	Embassy Suites La Jolla (4)		1,796		1,592		13%	8,477		7,481		13%
22	Marriott Philadelphia		1,576		1,566		1%	4,125		4,242		-3%
23	Marriott Portland (4)		1,285		1,104		16%	5,559		4,655		19%
24	Sheraton Cerritos		852		756		13%	2,889		2,369		22%
25	Marriott Park City		191		122		57%	2,250		2,055		9%
26	Courtyard by Marriott Los Angeles (3) (4)		1,119		462		142%	3,851		2,181		77%
	Comparable Portfolio		$	70,084	$	65,269	7%	$	244,063	$	222,035	10%
	(1)	Reflects 100% ownership.
	(2)	Reconciliations to Net Income (Loss) provided on pages 60, 61, 63 and 64.
	(3)	Hotel EBITDA for the fourth quarter of 2012 is impacted by a $0.2 million credit related to prior year property tax expense at the Courtyard by Marriott Los Angeles.
	(4)	Hotel EBITDA in 2012 is impacted by: (1) $0.2 million credit related to prior year CAM expense at the Renaissance Harborplace; and (2) a total of $0.5 million in property tax credits net of (assessments) received at the following hotels: Courtyard by Marriott Los Angeles $208,000;  Embassy Suites Chicago $611,000; Embassy Suites La Jolla $301,000; Hilton North Houston $56,000; Hilton San Diego Bayfront $(811,000); Marriott Houston $43,000; and Renaissance Harborplace $106,000. Hotel EBITDA in 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; Marriott Houston $(33,000); Marriott Portland $48,000; 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 36  

Supplemental Financial Information – Unaudited
February 19, 2013

Property-Level EBITDA Margins
Q4 & FY 2012/2011

	Hotels sorted by number of rooms		For the Three Months Ended December 31,			For the Years Ended December 31,
			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) (3)		31.6%	32.5%	(90) bps	34.6%	33.4%	120 bps
2	Renaissance Washington DC (3)		27.0%	31.1%	(410) bps	24.6%	30.3%	(570) bps
3	Renaissance Orlando at SeaWorld ® (3)		19.5%	24.5%	(500) bps	26.6%	25.0%	160 bps
4	Renaissance Harborplace (3)		29.7%	28.3%	140 bps	27.4%	26.6%	80 bps
5	Renaissance Los Angeles Airport		17.7%	15.9%	180 bps	17.9%	16.4%	150 bps
6	JW Marriott New Orleans		32.9%	28.1%	480 bps	31.0%	29.0%	200 bps
7	Hilton North Houston (3)		19.7%	15.2%	450 bps	21.2%	16.9%	430 bps
8	Marriott Quincy		32.9%	26.8%	610 bps	28.2%	23.3%	490 bps
9	Doubletree Guest Suites Times Square (1) (3)		45.0%	43.7%	130 bps	35.4%	34.8%	60 bps
10	Hilton Times Square		38.0%	39.1%	(110) bps	30.2%	29.4%	80 bps
11	Fairmont Newport Beach (3)		16.2%	8.0%	820 bps	18.2%	16.6%	160 bps
12	Hyatt Chicago Magnificent Mile		20.6%	27.0%	(640) bps	19.3%	22.5%	(320) bps
13	Marriott Boston Long Wharf		35.1%	33.0%	210 bps	35.5%	31.4%	410 bps
14	Hyatt Regency Newport Beach (3)		4.6%	11.4%	(680) bps	16.2%	17.8%	(160) bps
15	Marriott Tysons Corner		35.0%	33.1%	190 bps	33.1%	31.5%	160 bps
16	Marriott Houston (3)		21.3%	8.3%	1,300 bps	22.8%	13.6%	920 bps
17	Renaissance Long Beach		20.6%	21.2%	(60) bps	23.8%	23.6%	20 bps
18	Embassy Suites Chicago (3)		49.0%	24.5%	2,450 bps	42.3%	35.5%	680 bps
19	Hilton Garden Inn Chicago Downtown/Magnificent Mile		40.5%	37.9%	260 bps	37.9%	35.5%	240 bps
20	Renaissance Westchester (3)		11.5%	12.6%	(110) bps	7.8%	9.5%	(170) bps
21	Embassy Suites La Jolla (3)		41.7%	39.3%	240 bps	44.5%	41.3%	320 bps
22	Marriott Philadelphia		26.3%	26.0%	30 bps	22.5%	22.9%	(40) bps
23	Marriott Portland (3)		39.9%	37.0%	290 bps	41.1%	38.3%	280 bps
24	Sheraton Cerritos		28.2%	27.3%	90 bps	24.8%	22.7%	210 bps
25	Marriott Park City		10.9%	7.3%	360 bps	23.7%	22.3%	140 bps
26	Courtyard by Marriott Los Angeles (2) (3)		42.9%	20.0%	2,290 bps	35.6%	24.5%	1,110 bps
	Comparable Portfolio		30.3%	29.0%	130 bps	29.0%	27.8%	120 bps
	Adjusted Comparable Portfolio (2) (3)		30.2%	29.0%	120 bps	28.9%	27.8%	110 bps
	(1)	Reflects 100% ownership.
	(2)	Hotel EBITDA for the fourth quarter of 2012 is impacted by a $0.2 million credit related to prior year property tax expense at the Courtyard by Marriott Los Angeles.
	(3)	Hotel EBITDA in 2012 is impacted by: (1) $0.2 million credit related to prior year CAM expense at the Renaissance Harborplace; and (2) a total of $0.5 million in property tax credits net of (assessments) received at the following hotels: Courtyard by Marriott Los Angeles $208,000;  Embassy Suites Chicago $611,000; Embassy Suites La Jolla $301,000; Hilton North Houston $56,000; Hilton San Diego Bayfront $(811,000); Marriott Houston $43,000; and Renaissance Harborplace $106,000. Hotel EBITDA in 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; Marriott Houston $(33,000); Marriott Portland $48,000; 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
February 19, 2013

APPENDIX

APPENDIX Page 38  

Supplemental Financial Information – Unaudited
February 19, 2013

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

Q1 2012

	Three Months Ended March 31, 2012
							Acquisition:			Acquisition:			Repayment:			Investment:		Issuance:		Redemption:
				Discontinued			Hyatt			Hilton Garden Inn			Debt &			Preferred		Common		Series A Preferred		Pro
(In thousands, except per share amounts)	Actual (1)			Operations (2)			Chicago (3)			Chicago (4)			Senior Notes (5)			Equity (6)		Stock (7)		Stock (8)		Forma (9)
Net loss	$	(12,968	)	$	(1,368	)	$	(2,593	)	$	(694	)	$	1,722		$	688	$	-	$	-	$	(15,213	)
Operations held for investment:
Depreciation and amortization	30,882			-			1,950			1,109			-			-		-		-		33,941
Amortization of lease intangibles	1,028			-			-			-			-			-		-		-		1,028
Interest expense	18,074			-			351			-			(1,096		)	-		-		-		17,329
Amortization of deferred financing fees	943			-			-			-			(169		)	-		-		-		774
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	3,874			(3,874		)	-			-			-			-		-		-		-
Amortization of lease intangibles	7			(7		)	-			-			-			-		-		-		-
Interest expense	2,120			(2,120		)	-			-			-			-		-		-		-
Amortization of deferred financing fees	24			(24		)	-			-			-			-		-		-		-
EBITDA	41,720			(7,393		)	(292		)	415			191			688		-		-		35,329
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		)	-		-		-		-
Closing costs - completed acquisitions	36			-			-			-			-			-		-		-		36
Lawsuit settlement reversal of costs	(97		)	-			-			-			-			-		-		-		(97		)
Non-controlling interests:
Non-cash straightline lease expense	(113		)	-			-			-			-			-		-		-		(113		)
Discontinued operations:
Gain on sale of assets	(177		)	177			-			-			-			-		-		-		-
Lawsuit settlement reversal of costs	(48		)	48			-			-			-			-		-		-		-
	1,423			225			(351		)	-			(191		)	-		-		-		1,106
Adjusted EBITDA	$	43,143		$	(7,168	)	$	(643	)	$	415		$	-		$	688	$	-	$	-	$	36,435
*Footnotes on following page

APPENDIX Page 39  

Supplemental Financial Information – Unaudited
February 19, 2013

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

	Three Months Ended March 31, 2012
						Acquisition:			Acquisition:			Repayment:			Investment:		Issuance:		Redemption:
			Discontinued			Hyatt			Hilton Garden Inn			Debt &			Preferred		Common		Series A Preferred		Pro
(In thousands, except per share amounts)	Actual (1)		Operations (2)			Chicago (3)			Chicago (4)			Senior Notes (5)			Equity (6)		Stock (7)		Stock (8)		Forma (9)
Net loss	$	(12,968)	$	(1,368	)	$	(2,593	)	$	(694	)	$	1,722		$	688	$	-	$	-	$	(15,213	)
Preferred stock dividends	(7,437)		-			-			-			-			-		-		3,525		(3,912		)
Operations held for investment:
Real estate depreciation and amortization	30,575		-			1,950			1,109			-			-		-		-		33,634
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	3,874		(3,874		)	-			-			-			-		-		-		-
Amortization of lease intangibles	7		(7		)	-			-			-			-		-		-		-
Gain on sale of assets	(177)		177			-			-			-			-		-		-		-
FFO	12,912		(5,072		)	(643		)	415			1,722			688		-		3,525		13,547
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		)	-		-		-		-
Closing costs - completed acquisitions	36		-			-			-			-			-		-		-		36
Lawsuit settlement reversal of costs	(97)		-			-			-			-			-		-		-		(97		)
Non-controlling interests:
Non-cash straightline lease expense	(113)		-			-			-			-			-		-		-		(113		)
Non-cash interest related to loss on derivative	(1)		-			-			-			-			-		-		-		(1		)
Discontinued operations:
Lawsuit settlement reversal of costs	(48)		48			-			-			-			-		-		-		-
	740		48			-			-			(191		)	-		-		-		597
Adjusted FFO	$	13,652	$	(5,024	)	$	(643	)	$	415		$	1,531		$	688	$	-	$	3,525	$	14,144
FFO per diluted share	$	0.11																			$	0.09
Adjusted FFO per diluted share	$	0.12																			$	0.09
Basic weighted average shares outstanding	117,426																39,597				157,023
Shares associated with unvested restricted stock awards	155																-				155
Diluted weighted average shares outstanding (10)	117,581																39,597				157,178

(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 December 31, 2012 presentation, 24 hotels are classified as held for investment and eight 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. It also includes the ownership results for the Kahler Grand, Kahler Inn & Suites, Marriott Rochester, Residence Inn by Marriott Rochester and the Rochester commercial laundry facility which were classified as held for sale at December 31, 2012 due to their sale in January 2013.

(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) Repayment: Debt & Senior Notes represents interest and deferred finance fee amortization on the $32.2 million non-recourse mortgage secured by the Renaissance Long Beach, which was repaid in April 2012, along with  interest, accretion of discount, deferred finance fee amortization and loss on extinguishment of debt related to the Company’s repurchase of $4.5 million of its 4.6% Exchangeable Senior Notes in February 2012 and the remaining $58.0 million balance in January 2013.

(6) Investment: Preferred Equity represents the 11.0% dividend on the $25.0 million preferred equity investment that the Company retained on the disposition of the four-hotel portfolio (Kahler Grand, Kahler Inn & Suites, Marriott Rochester and Residence Inn by Marriott Rochester) sold in January 2013.

(7) Issuance: Common Stock represents the 5,454,164 shares issued to the seller of the Hyatt Chicago Magnificent Mile in June 2012, along with the 12,143,273 shares  and  the 22,000,000 shares issued by the Company in connection with a common stock offering in June 2012 and  February 2013, respectively.

(8) Redemption: Series A Preferred Stock represents the dividends paid by the Company on the 7,050,000 shares of 8.0% cumulative redeemable preferred stock expected to be redeemed by the Company in March 2013.

(9) Pro Forma represents the Company’s ownership results and prior ownership results for the pro forma 26 hotel portfolio, as well as the effects of the repayment of debt in April 2012, the Exchangeable Senior Note repurchases in February 2012 and January 2013, the common stock issuances in June 2012 and February 2013, along with the expected Series A Preferred Stock redemption in March 2013.

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

APPENDIX Page 40  

Supplemental Financial Information – Unaudited
February 19, 2013

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

Q2 2012

	Three Months Ended June 30, 2012
							Acquisition:			Acquisition:		Repayment:			Investment:		Issuance:		Redemption:
				Discontinued			Hyatt			Hilton Garden Inn		Debt &			Preferred		Common		Series A Preferred		Pro
(In thousands, except per share amounts)	Actual (1)			Operations (2)			Chicago (3)			Chicago (4)		Senior Notes (5)			Equity (6)		Stock (7)		Stock (8)		Forma (9)
Net income	$	11,855		$	(2,596	)	$	(202	)	$	1,462	$	1,223		$	687	$	-	$	-	$	12,429
Operations held for investment:
Depreciation and amortization	31,305			-			1,363			1,109		-			-		-		-		33,777
Amortization of lease intangibles	1,028			-			-			-		-			-		-		-		1,028
Interest expense	17,806			-			234			-		(800		)	-		-		-		17,240
Amortization of deferred financing fees	939			-			-			-		(162		)	-		-		-		777
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	3,983			(3,983		)	-			-		-			-		-		-		-
Amortization of lease intangibles	7			(7		)	-			-		-			-		-		-		-
Interest expense	2,104			(2,104		)	-			-		-			-		-		-		-
Amortization of deferred financing fees	23			(23		)	-			-		-			-		-		-		-
EBITDA	67,384			(8,713		)	1,395			2,571		-			687		-		-		63,324
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		)
Closing costs - completed acquisitions	1,339			-			-			-		-			-		-		-		1,339
Lawsuit settlement costs	255			-			-			-		-			-		-		-		255
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		$	(8,713	)	$	1,161		$	2,571	$	-		$	687	$	-	$	-	$	66,839

* Footnotes on following page

APPENDIX Page 41

Supplemental Financial Information – Unaudited
February 19, 2013

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

	Three Months Ended June 30, 2012
							Acquisition:			Acquisition:		Repayment:			Investment:		Issuance:		Redemption:
				Discontinued			Hyatt			Hilton Garden Inn		Debt &			Preferred		Common		Series A Preferred		Pro
(In thousands, except per share amounts)	Actual (1)			Operations (2)			Chicago (3)			Chicago (4)		Senior Notes (5)			Equity (6)		Stock (7)		Stock (8)		Forma (9)
Net income	$	11,855		$	(2,596	)	$	(202	)	$	1,462	$	1,223		$	687	$	-	$	-	$	12,429
Preferred stock dividends	(7,437		)	-			-			-		-			-		-		3,525		(3,912		)
Operations held for investment:
Real estate depreciation and amortization	31,006			-			1,363			1,109		-			-		-		-		33,478
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	3,983			(3,983		)	-			-		-			-		-		-		-
Amortization of lease intangibles	7			(7		)	-			-		-			-		-		-		-
FFO	38,715			(6,586		)	1,161			2,571		1,223			687		-		3,525		41,296
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
Closing costs - completed acquisitions	1,339			-			-			-		-			-		-		-		1,339
Lawsuit settlement costs	255			-			-			-		-			-		-		-		255
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		)	-		-		-		3,393
Adjusted FFO	$	42,111		$	(6,586	)	$	1,161		$	2,571	$	1,220		$	687	$	-	$	3,525	$	44,689
FFO per diluted share	$	0.32																			$	0.26
Adjusted FFO per diluted share	$	0.35																			$	0.28
Basic weighted average shares outstanding	120,029																37,178				157,207
Shares associated with unvested restricted stock awards	228																-				228
Diluted weighted average shares outstanding (10)	120,257																37,178				157,435

(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 December 31, 2012 presentation, 25 hotels are classified as held for investment and eight 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.

It also includes the ownership results for the Kahler Grand, Kahler Inn & Suites, Marriott Rochester, Residence Inn by Marriott Rochester and the Rochester commercial laundry facility which were classified as held for sale at December 31, 2012 due to their sale in January 2013.

(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

(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) Repayment: Debt & Senior Notes represents interest, deferred finance fee amortization and deferred finance fees written off on the $32.2 million non-recourse mortgage secured by the Renaissance Long Beach, which was repaid in April 2012, along with interest, accretion of discount and deferred finance fee amortization related to the Company’s repurchase of the remaining $58.0 million balance of its 4.6% Exchangeable Senior Notes in January 2013.

(6) Investment: Preferred Equity represents the 11.0% dividend  on the $25.0 million preferred equity investment that the Company retained on the disposition of the four-hotel portfolio (Kahler Grand, Kahler Inn & Suites, Marriott Rochester and Residence Inn by Marriott Rochester) sold in January 2013.

(7) Issuance: Common Stock represents the 5,454,164 shares issued to the seller of the Hyatt Chicago Magnificent Mile in June 2012, along with the 12,143,273 shares  and  the 22,000,000 shares issued by the Company in connection with a common stock offering in June 2012 and  February 2013, respectively.

(8) Redemption: Series A Preferred Stock represents the dividends paid by the Company on the 7,050,000 shares of 8.0% cumulative redeemable preferred stock expected to be redeemed by the Company in March 2013.

(9) Pro Forma represents the Company’s ownership results and prior ownership results for the pro forma 26 hotel portfolio, as well as the effects of the repayment of debt in April 2012, the Exchangeable Senior Note repurchase in January 2013, the common stock issuances in June 2012 and February 2013, along with the expected Series A Preferred Stock redemption in March 2013.

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

APPENDIX Page 42  

Supplemental Financial Information – Unaudited
February 19, 2013

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

Q3 2012

	Three Months Ended September 30, 2012
							Acquisition:		Repurchase:			Investment:		Issuance:		Redemption:
				Discontinued			Hilton Garden Inn		Exchangeable			Preferred		Common		Series A Preferred		Pro
(In thousands, except per share amounts)	Actual (1)			Operations (2)			Chicago (3)		Senior Notes (4)			Equity (5)		Stock (6)		Stock (7)		Forma (8)
Net income (loss)	$	39,556		$	(42,602	)	$	367	$	1,095		$	688	$	-	$	-	$	(896	)
Operations held for investment:
Depreciation and amortization	34,381			-			-		-			-		-		-		34,381
Amortization of lease intangibles	1,120			-			-		-			-		-		-		1,120
Interest expense	18,027			-			-		(667		)	-		-		-		17,360
Amortization of deferred financing fees	922			-			-		(161		)	-		-		-		761
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	3,125			(3,125		)	-		-			-		-		-		-
Interest expense	1,627			(1,627		)	-		-			-		-		-		-
Amortization of deferred financing fees	13			(13		)	-		-			-		-		-		-
Write-off of deferred financing fees	192			(192		)	-		-			-		-		-		-
EBITDA	96,455			(47,559		)	367		-			688		-		-		49,951
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		$	(9,444	)	$	367	$	-		$	688	$	-	$	-	$	51,663

*Footnotes on following page

APPENDIX   Page 43  

Supplemental Financial Information – Unaudited
February 19, 2013

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

	Three Months Ended September 30, 2012
							Acquisition:		Repurchase:		Investment:		Issuance:		Redemption:
				Discontinued			Hilton Garden Inn		Exchangeable		Preferred		Common		Series A Preferred		Pro
(In thousands, except per share amounts)	Actual (1)			Operations (2)			Chicago (3)		Senior Notes (4)		Equity (5)		Stock (6)		Stock (7)		Forma (8)
Net income (loss)	$	39,556		$	(42,602	)	$	367	$	1,095	$	688	$	-	$	-	$	(896	)
Preferred stock dividends	(7,437		)	-			-		-		-		-		3,525		(3,912		)
Operations held for investment:
Real estate depreciation and amortization	34,082			-			-		-		-		-		-		34,082
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	3,125			(3,125		)	-		-		-		-		-		-
Gain on sale of assets	(38,115		)	38,115			-		-		-		-		-		-
FFO	30,115			(7,612		)	367		1,095		688		-		3,525		28,178
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	192			(192		)	-		-		-		-		-		-
	1,506			(192		)	-		-		-		-		-		1,314
Adjusted FFO	$	31,621		$	(7,804	)	$	367	$	1,095	$	688	$	-	$	3,525	$	29,492
FFO per diluted share	$	0.22															$	0.18
Adjusted FFO per diluted share	$	0.23															$	0.19
Basic weighted average shares outstanding	135,236												22,000				157,236
Shares associated with unvested restricted stock awards	318												-				318
Diluted weighted average shares outstanding (9)	135,554												22,000				157,554

(1) Actual represents the Company’s ownership results for the 30 hotels in which the Company has interests as of September 30, 2012.  In accordance with the December 31, 2012 presentation, 26 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.

It also includes the ownership results for the Kahler Grand, Kahler Inn & Suites, Marriott Rochester, Residence Inn by Marriott Rochester and the Rochester commercial laundry facility which were classified as held for sale at December 31, 2012 due to their sale in January 2013.

(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) Repurchase: Exchangeable Senior Notes represents interest, accretion of discount and deferred finance fee amortization related to the Company’s repurchase of the remaining $58.0 million balance of its 4.6% Exchangeable Senior Notes in January 2013.

(5) Investment: Preferred Equity represents the 11.0% dividend  on the $25.0 million preferred equity investment that the Company retained on the disposition of the four-hotel portfolio (Kahler Grand, Kahler Inn & Suites, Marriott Rochester and Residence Inn by Marriott Rochester) sold in January 2013.

(6) Issuance: Common Stock represents the 22,000,000 shares issued by the Company in connection with a common stock offering in February 2013.

(7) Redemption: Series A Preferred Stock represents the dividends paid by the Company on the 7,050,000 shares of 8.0% cumulative redeemable preferred stock expected to be redeemed by the Company in March 2013.

(8) Pro Forma represents the Company’s ownership results and prior ownership results for the pro forma 26 hotel portfolio, as well as the effects of the Exchangeable Senior Note repurchase in January 2013, the common stock issuance in February 2013, along with the expected Series A Preferred Stock redemption in March 2013.

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

APPENDIX Page 44  

Supplemental Financial Information – Unaudited
February 19, 2013

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

Q4 2012

	Three Months Ended December 31, 2012
							Repurchase:			Investment:		Issuance:		Redemption:
				Discontinued			Exchangeable			Preferred		Common		Series A Preferred		Pro
(In thousands, except per share amounts)	Actual (1)			Operations (2)			Senior Notes (3)			Equity (4)		Stock (5)		Stock (6)		Forma (7)
Net income	$	11,114		$	(1,844	)	$	1,095		$	687	$	-	$	-	$	11,052
Operations held for investment:
Depreciation and amortization	34,339			-			-			-		-		-		34,339
Amortization of lease intangibles	1,143			-			-			-		-		-		1,143
Interest expense	17,757			-			(667		)	-		-		-		17,090
Amortization of deferred financing fees	886			-			(161		)	-		-		-		725
Non-cash interest related to discount on Senior Notes	267			-			(267		)	-		-		-		-
Non-cash interest related to gain on derivatives	(189		)	-			-			-		-		-		(189		)
Income tax provision	1,148						-			-		-		-		1,148
Non-controlling interests:				-
Income from consolidated joint venture attributable to non-controlling interest	(67		)	-			-			-		-		-		(67		)
Depreciation and amortization	(1,424		)	-			-			-		-		-		(1,424		)
Interest expense	(549		)	-			-			-		-		-		(549		)
Amortization of deferred financing fees	(56		)				-			-		-		-		(56		)
Discontinued operations:				-
Depreciation and amortization	2,182			(2,182		)	-			-		-		-		-
Interest expense	380			(380		)	-			-		-		-		-
Amortization of deferred financing fees	7			(7		)	-			-		-		-		-
EBITDA	66,938			(4,413		)	-			687		-		-		63,212
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		)
Gain on sale of assets	(4		)	-			-			-		-		-		(4		)
Hotel laundry closing costs	199			-			-			-		-		-		199
Non-controlling interests:
Non-cash straightline lease expense	(111		)	-			-			-		-		-		(111		)
	1,239			-			-			-		-		-		1,239
Adjusted EBITDA	$	68,177		$	(4,413	)	$	-		$	687	$	-	$	-	$	64,451

*Footnotes on following page

APPENDIX Page 45

Supplemental Financial Information – Unaudited February 19, 2013

Reconciliation of Pro Forma Net Income (Loss) to FFO and Adjusted FFO
Q4 2012

	Three Months Ended December 31, 2012
							Repurchase:		Investment:		Issuance:		Redemption:
				Discontinued			Exchangeable		Preferred		Common		Series A Preferred		Pro
(In thousands, except per share amounts)	Actual (1)			Operations (2)			Senior Notes (3)		Equity (4)		Stock (5)		Stock (6)		Forma (7)
Net income	$	11,114		$	(1,844	)	$	1,095	$	687	$	-	$	-	$	11,052
Preferred stock dividends	(7,437		)	-			-		-		-		3,525		(3,912		)
Operations held for investment:
Real estate depreciation and amortization	34,005			-			-		-		-		-		34,005
Amortization of lease intangibles	1,143			-			-		-		-		-		1,143
Gain on sale of assets	(4		)	-			-		-		-		-		(4		)
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest	(67		)	-			-		-		-		-		(67		)
Real estate depreciation and amortization	(1,424		)	-			-		-		-		-		(1,424		)
Discontinued operations:
Real estate depreciation and amortization	2,182			(2,182		)	-		-		-		-		-
FFO	39,512			(4,026		)	1,095		687		-		3,525		40,793
Operations held for investment:
Non-cash straightline lease expense	694			-			-		-		-		-		694
Non-cash interest related to gain on derivatives	(189		)	-			-		-		-		-		(189		)
Hotel laundry closing costs	199			-			-		-		-		-		199
Income tax provision	1,148			-			-		-		-		-		1,148
Non-controlling interests:
Non-cash straightline lease expense	(111		)	-			-		-		-		-		(111		)
	1,741			-			-		-		-		-		1,741
Adjusted FFO	$	41,253		$	(4,026	)	$	1,095	$	687	$	-	$	3,525	$	42,534
FFO per diluted share	$	0.29													$	0.26
Adjusted FFO per diluted share	$	0.30													$	0.27
Basic weighted average shares outstanding	135,237										22,000				157,237
Shares associated with unvested restricted stock awards	385										-				385
Diluted weighted average shares outstanding (8)	135,622										22,000				157,622

(1)	Actual represents the Company’s ownership results for the 30 hotels in which the Company has interests as of December 31, 2012, of which 26 hotels are classified as held for investment and four have been reclassified as discontinued operations.
(2)	Discontinued Operations represents the ownership results for the Kahler Grand, Kahler Inn & Suites, Marriott Rochester, Residence Inn by Marriott Rochester and the Rochester commercial laundry facility which were classified as held for sale at December 31, 2012 due to their sale in January 2013. It also includes the ownership results for the Marriott Troy which was sold in September 2012 during Marriott’s tenth fiscal period of the year which the Company includes in its October statement of operations.
(3)	Repurchase: Exchangeable Senior Notes represents interest, accretion of discount and deferred finance fee amortization related to the Company’s repurchase of the remaining $58.0 million balance of its 4.6% Exchangeable Senior Notes in January 2013.
(4)	Investment: Preferred Equity represents the 11.0% dividend on the $25.0 million preferred equity investment that the Company retained on the disposition of the four-hotel portfolio (Kahler Grand, Kahler Inn & Suites, Marriott Rochester and Residence Inn by Marriott Rochester) sold in January 2013.
(5)	Issuance: Common Stock represents the 22,000,000 shares issued by the Company in connection with a common stock offering in February 2013.
(6)	Redemption: Series A Preferred Stock represents the dividends paid by the Company on the 7,050,000 shares of 8.0% cumulative redeemable preferred stock expected to be redeemed by the Company in March 2013.
(7)	Pro Forma represents the Company’s ownership results for the pro forma 26 hotel portfolio, as well as the effects of the Exchangeable Senior Note repurchase in January 2013, the common stock issuance in February 2013, along with the expected Series A Preferred Stock redemption in March 2013.
(8)	Diluted weighted average shares outstanding includes the Series C convertible preferred stock on a “non-converted” basis.

APPENDIX Page 46  

Supplemental Financial Information – Unaudited February 19, 2013

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

FY 2012

	Year Ended December 31, 2012
							Acquisition:			Acquisition:		Repayment:			Investment:		Issuance:		Redemption:
				Discontinued			Hyatt			Hilton Garden Inn		Debt &			Preferred		Common		Series A Preferred		Pro
(In thousands, except per share amounts)	Actual (1)			Operations (2)			Chicago (3)			Chicago (4)		Senior Notes (5)			Equity (6)		Stock (7)		Stock (8)		Forma (9)
Net income	$	49,557		$	(48,410	)	$	(2,795	)	$	1,135	$	5,135		$	2,750	$	-	$	-	$	7,372
Operations held for investment:
Depreciation and amortization	130,907			-			3,313			2,218		-			-		-		-		136,438
Amortization of lease intangibles	4,319			-			-			-		-			-		-		-		4,319
Interest expense	71,664			-			585			-		(3,230		)	-		-		-		69,019
Amortization of deferred financing fees	3,690			-			-			-		(653		)	-		-		-		3,037
Write-off of deferred financing fees	3			-			-			-		(3		)	-		-		-		-
Non-cash interest related to discount on Senior Notes	1,058			-			-			-		(1,058		)	-		-		-		-
Non-cash interest related to loss on derivatives	406			-			-			-		-			-		-		-		406
Income tax provision	1,148			-			-			-		-			-		-		-		1,148
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest	(1,761		)	-			-			-		-			-		-		-		(1,761		)
Depreciation and amortization	(5,685		)	-			-			-		-			-		-		-		(5,685		)
Interest expense	(2,252		)	-			-			-		-			-		-		-		(2,252		)
Amortization of deferred financing fees	(224		)	-			-			-		-			-		-		-		(224		)
Non-cash interest related to loss on derivative	(1		)	-			-			-		-			-		-		-		(1		)
Discontinued operations:
Depreciation and amortization	13,164			(13,164		)	-			-		-			-		-		-		-
Amortization of lease intangibles	14			(14		)	-			-		-			-		-		-		-
Interest expense	6,231			(6,231		)	-			-		-			-		-		-		-
Amortization of deferred financing fees	74			(74		)	-			-		-			-		-		-		-
Write-off of deferred financing fees	185			(185		)	-			-		-			-		-		-		-
EBITDA	272,497			(68,078		)	1,103			3,353		191			2,750		-		-		211,816
Operations held for investment:
Amortization of deferred stock compensation	3,466			-			-			-		-			-		-		-		3,466
Non-cash straightline lease expense	2,777			-			-			-		-			-		-		-		2,777
Capital lease obligation interest - cash ground rent	(819		)	-			(585		)	-		-			-		-		-		(1,404		)
Loss on sale of assets, net	18			-			-			-		-			-		-		-		18
Loss on extinguishment of debt	191			-			-			-		(191		)	-		-		-		-
Closing costs - completed acquisitions	1,965			-			-			-		-			-		-		-		1,965
Lawsuit settlement costs, net	158			-			-			-		-			-		-		-		158
Prior year property tax and CAM adjustments, net	621			-			-			-		-			-		-		-		621
Hotel laundry closing costs	623			-			-			-		-			-		-		-		623
Non-controlling interests:
Non-cash straightline lease expense	(450		)	-			-			-		-			-		-		-		(450		)
Prior year property tax adjustments, net	(202		)	-			-			-		-			-		-		-		(202		)
Discontinued operations:
Gain on sale of assets, net	(38,292		)	38,292			-			-		-			-		-		-		-
Lawsuit settlement reversal of costs	(48		)	48			-			-		-			-		-		-		-
	(29,992		)	38,340			(585		)	-		(191		)	-		-		-		7,572
Adjusted EBITDA	$	242,505		$	(29,738	)	$	518		$	3,353	$	-		$	2,750	$	-	$	-	$	219,388

*Footnotes on following page

APPENDIX Page 47  

Supplemental Financial Information – Unaudited February 19, 2013

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

	Year Ended December 31, 2012
							Acquisition:			Acquisition:		Repayment:			Investment:		Issuance:		Redemption:
				Discontinued			Hyatt			Hilton Garden Inn		Debt &			Preferred		Common		Series A Preferred		Pro
(In thousands, except per share amounts)	Actual (1)			Operations (2)			Chicago (3)			Chicago (4)		Senior Notes (5)			Equity (6)		Stock (7)		Stock (8)		Forma (9)
Net income	$	49,557		$	(48,410	)	$	(2,795	)	$	1,135	$	5,135		$	2,750	$	-	$	-	$	7,372
Preferred stock dividends	(29,748		)	-			-			-		-			-		-		14,100		(15,648		)
Operations held for investment:
Real estate depreciation and amortization	129,668			-			3,313			2,218		-			-		-		-		135,199
Amortization of lease intangibles	4,319			-			-			-		-			-		-		-		4,319
Loss on sale of assets, net	18			-			-			-		-			-		-		-		18
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest	(1,761		)	-			-			-		-			-		-		-		(1,761		)
Real estate depreciation and amortization	(5,685		)	-			-			-		-			-		-		-		(5,685		)
Discontinued operations:
Real estate depreciation and amortization	13,164			(13,164		)	-			-		-			-		-		-		-
Amortization of lease intangibles	14			(14		)	-			-		-			-		-		-		-
Gain on sale of assets, net	(38,292		)	38,292			-			-		-			-		-		-		-
FFO	121,254			(23,296		)	518			3,353		5,135			2,750		-		14,100		123,814
Operations held for investment:
Non-cash straightline lease expense	2,777			-			-			-		-			-		-		-		2,777
Write-off of deferred financing fees	3			-			-			-		(3		)	-		-		-		-
Non-cash interest related to loss on derivatives	406			-			-			-		-			-		-		-		406
Loss on extinguishment of debt	191			-			-			-		(191		)	-		-		-		-
Closing costs - completed acquisitions	1,965			-			-			-		-			-		-		-		1,965
Lawsuit settlement costs, net	158			-			-			-		-			-		-		-		158
Prior year property tax and CAM adjustments, net	621			-			-			-		-			-		-		-		621
Hotel laundry closing costs	623			-			-			-		-			-		-		-		623
Income tax provision	1,148			-			-			-		-			-		-		-		1,148
Non-controlling interests:
Non-cash straightline lease expense	(450		)	-			-			-		-			-		-		-		(450		)
Non-cash interest related to loss on derivative	(1		)	-			-			-		-			-		-		-		(1		)
Prior year property tax adjustments, net	(202		)	-			-			-		-			-		-		-		(202		)
Discontinued operations:
Write-off of deferred financing fees	185			(185		)	-			-		-			-		-		-		-
Lawsuit settlement reversal of costs	(48		)	48			-			-		-			-		-		-		-
	7,376			(137		)	-			-		(194		)	-		-		-		7,045
Adjusted FFO	$	128,630		$	(23,433	)	$	518		$	3,353	$	4,941		$	2,750	$	-	$	14,100	$	130,859
FFO per diluted share	$	0.95																			$	0.79
Adjusted FFO per diluted share	$	1.01																			$	0.83
Basic weighted average shares outstanding	127,027																30,149				157,176
Shares associated with unvested restricted stock awards	274																-				274
Diluted weighted average shares outstanding (10)	127,301																30,149				157,450

(1)	Actual represents the Company’s ownership results for the 30 hotels in which the Company has interests as of December 31, 2012, of which 26 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. It also includes the ownership results for the Kahler Grand, Kahler Inn & Suites, Marriott Rochester, Residence Inn by Marriott Rochester and the Rochester commercial laundry facility which were classified as held for sale at December 31, 2012 due to their sale in January 2013.
(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)	Repayment: Debt & Senior Notes represents interest, deferred finance fee amortization and deferred finance fees written off on the $32.2 million non-recourse mortgage secured by the Renaissance Long Beach, which was repaid in April 2012, along with interest, accretion of discount, deferred finance fee amortization and loss on extinguishment of debt related to the Company’s repurchase of $4.5 million of its 4.6% Exchangeable Senior Notes in February 2012 and the remaining $58.0 million balance in January 2013.
(6)	Investment: Preferred Equity represents the 11.0% dividend on the $25.0 million preferred equity investment that the Company retained on the disposition of the four-hotel portfolio (Kahler Grand, Kahler Inn & Suites, Marriott Rochester and Residence Inn by Marriott Rochester) sold in January 2013.
(7)	Issuance: Common Stock represents the 5,454,164 shares issued to the seller of the Hyatt Chicago Magnificent Mile in June 2012, along with the 12,143,273 shares and the 22,000,000 shares issued by the Company in connection with a common stock offering in June 2012 and February 2013, respectively.
(8)	Redemption: Series A Preferred Stock represents the dividends paid by the Company on the 7,050,000 shares of 8.0% cumulative redeemable preferred stock expected to be redeemed by the Company in March 2013.
(9)	Pro Forma represents the Company’s ownership results and prior ownership results for the pro forma 26 hotel portfolio, as well as the effects of the repayment of debt in April 2012, the Exchangeable Senior Note repurchases in February 2012 and January 2013, the common stock issuances in June 2012 and February 2013, along with the expected Series A Preferred Stock redemption in March 2013.
(10)		Diluted weighted average shares outstanding includes the Series C convertible preferred stock on a “non-converted” basis.

APPENDIX Page 48  

Supplemental Financial Information – Unaudited
February 19, 2013

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:		Repayment:			Investment:		Issuance:		Redemption:
				Discontinued			Doubletree Guest			BuyEfficient,			JW Marriott		Hilton San			Preferred Stock		Royal Palm			Hyatt			Hilton Garden Inn		Debt &			Preferred		Common		Series A Preferred		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)		Senior Notes (11)			Equity (12)		Stock (13)		Stock (14)		Forma (15)
Net income	$	81,299		$	(40,453	)	$	(458	)	$	(7	)	$	174	$	2,986		$	-	$	8,132		$	(2,407	)	$	2,039	$	6,301		$	2,750	$	-	$	-	$	60,356
Operations held for investment:
Depreciation and amortization	113,708			-			261			37			262		5,785			-		-			7,800			4,437		-			-		-		-		132,290
Amortization of lease intangibles	3,979			-			140			-			-		-			-		-			-			-		-			-		-		-		4,119
Interest expense	67,319			-			138			-			287		2,320			-		-			1,404			-		(4,531		)	-		-		-		66,937
Amortization of deferred financing fees	3,138			-			-			-			-		263			-		-			-			-		(708		)	-		-		-		2,693
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	16,188			(16,188		)	-			-			-		-			-		-			-			-		-			-		-		-		-
Amortization of lease intangibles	28			(28		)	-			-			-		-			-		-			-			-		-			-		-		-		-
Interest expense	9,191			(9,191		)	-			-			-		-			-		-			-			-		-			-		-		-		-
Amortization of deferred financing fees	104			(104		)	-			-			-		-			-		-			-			-		-			-		-		-		-
Write-off of deferred financing fees	42			(42		)	-			-			-		-			-		-			-			-		-			-		-		-		-
EBITDA	292,658			(66,006		)	81			27			723		8,522			-		8,132			6,797			6,476		-			2,750		-		-		260,160
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		)
Closing costs - completed acquisitions	3,403			-			-			-			-		-			-		-			-			-		-			-		-		-		3,403
Impairment loss	10,862			-			-			-			-		-			-		(10,862		)	-			-		-			-		-		-		-
Lawsuit settlement costs	1,553			-			-			-			-		-			-		-			-			-		-			-		-		-		1,553
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			-			-			-		-			-		-			-			-		-			-		-		-		-
Lawsuit settlement costs	67			(67		)	-			-			-		-			-		-			-			-		-			-		-		-		-
	(80,199		)	31,495			5			-			1		281			-		(10,862		)	(1,404		)	370		-			-		-		-		(60,313		)
Adjusted EBITDA	$	212,459		$	(34,511	)	$	86		$	27		$	724	$	8,803		$	-	$	(2,730	)	$	5,393		$	6,846	$	-		$	2,750	$	-	$	-	$	199,847

*Footnotes on following page

APPENDIX Page 49    

Supplemental Financial Information – Unaudited
February 19, 2013

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:		Repayment:		Investment:		Issuance:		Redemption:
				Discontinued			Doubletree Guest			BuyEfficient,			JW Marriott		Hilton San			Preferred Stock			Royal Palm			Hyatt			Hilton Garden Inn		Debt &		Preferred		Common		Series A Preferred		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)		Senior Notes (11)		Equity (12)		Stock (13)		Stock (14)		Forma (15)
Net income	$	81,299		$	(40,453	)	$	(458	)	$	(7	)	$	174	$	2,986		$	-		$	8,132		$	(2,407	)	$	2,039	$	6,301	$	2,750	$	-	$	-	$	60,356
Preferred stock dividends	(27,321		)	-			-			-			-		-			(2,427		)	-			-			-		-		-		-		14,100		(15,648		)
Operations held for investment:
Real estate depreciation and amortization	112,539			-			261			-			262		5,785			-			-			7,800			4,437		-		-		-		-		131,084
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	16,188			(16,188		)	-			-			-		-			-			-			-			-		-		-		-		-		-
Amortization of lease intangibles	28			(28		)	-			-			-		-			-			-			-			-		-		-		-		-		-
Gain on sale of assets	(14,912		)	14,912			-			-			-		-			-			-			-			-		-		-		-		-		-
FFO	167,391			(41,757		)	(57		)	(7		)	436		6,586			(2,427		)	8,132			5,393			6,476		6,301		2,750		-		14,100		173,317
Operations held for investment:
Non-cash straightline lease expense	2,398			-			5			-			1		380			-			-			-			-		-		-		-		-		2,784
Write-off of deferred financing fees	21			-			-			-			-		-			-			-			-			-		-		-		-		-		21
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	1,553			-			-			-			-		-			-			-			-			-		-		-		-		-		1,553
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			-			-			-		-			-			-			-			-		-		-		-		-		-
Lawsuit settlement costs	67			(67		)	-			-			-		-			-			-			-			-		-		-		-		-		-
	(65,264		)	16,541			5			-			1		281			-			(10,862		)	-			-		-		-		-		-		(59,298		)
Adjusted FFO	$	102,127		$	(25,216	)	$	(52	)	$	(7	)	$	437	$	6,867		$	(2,427	)	$	(2,730	)	$	5,393		$	6,476	$	6,301	$	2,750	$	-	$	14,100	$	114,019

FFO per diluted share	$	1.43			$	1.10
Adjusted FFO per diluted share	$	0.87			$	0.73
Basic weighted average shares outstanding	117,206			39,597	156,803
Shares associated with unvested restricted stock awards	84			-	84
Diluted weighted average shares outstanding (16)	117,290		��	39,597	156,887

(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 December 31, 2012 presentation, 24 hotels are classified as held for investment and eight 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. It also includes the ownership results for the Kahler Grand, Kahler Inn & Suites, Marriott Rochester, Residence Inn by Marriott Rochester and the Rochester commercial laundry facility which were classified as held for sale at December 31, 2012 due to their sale in January 2013.

(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 that would have been paid by the Company on the 4,600,000 shares of 8.0% cumulative redeemable preferred stock issued on April 6, 2011.

(8) Disposition: Royal Palm Note Receivable represents interest income and an impairment loss recorded 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) Repayment: Debt & Senior Notes represents interest and deferred finance fee amortization on the $32.2 million non-recourse mortgage secured by the Renaissance Long Beach, which was repaid in April 2012, along with interest, accretion of discount and deferred finance fee amortization related to the Company’s repurchase of $4.5 million of its 4.6% Exchangeable Senior Notes in February 2012 and the remaining $58.0 million balance in January 2013.

(12) Investment: Preferred Equity represents the 11.0% dividend on the $25.0 million preferred equity investment that the Company retained on the disposition of the four-hotel portfolio (Kahler Grand, Kahler Inn & Suites, Marriott Rochester and Residence Inn by Marriott Rochester) sold in January 2013.

(13) Issuance: Common Stock represents the 5,454,164 shares issued to the seller of the Hyatt Chicago Magnificent Mile in June 2012, along with the 12,143,273 shares and the 22,000,000 shares issued by the Company in connection with a common stock offering in June 2012 and February 2013, respectively.

(14) Redemption: Series A Preferred Stock represents the dividends paid by the Company on the 7,050,000 shares of 8.0% cumulative redeemable preferred stock expected to be redeemed by the Company in March 2013.

(15) Pro Forma represents the Company’s ownership results and prior ownership results for the pro forma 26 hotel portfolio, as well as the acquisition of BuyEfficient, LLC in January 2011 along with the effects of the Series D Preferred Stock equity offering in April 2011, the disposition of the Royal Palm Note Receivable sold in October 2011, the repayment of debt in April 2012, the Exchangeable Senior Note repurchases in February 2012 and January 2013, the common stock issuances in June 2012 and February 2013, along with the expected Series A Preferred Stock redemption in March 2013.

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

APPENDIX Page 50    

Supplemental Financial Information – Unaudited February 19, 2013

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	Renaissance Harborplace (3)	7,047			(2,588		)	-		2,028		1,296		736			10.4	%
5	Renaissance Los Angeles Airport	5,677			378			-		688		-		1,066			18.8	%
6	JW Marriott New Orleans	8,312			536			1		1,798		585		2,920			35.1	%
7	Hilton North Houston (3)	5,919			144			-		945		478		1,567			26.5	%
8	Marriott Quincy	4,830			(539		)	-		1,228		-		689			14.3	%
9	Doubletree Guest Suites Times Square (1)	11,949			(3,168		)	1,003		1,983		1,956		1,774			14.8	%
10	Hilton Times Square	10,254			(2,373		)	270		2,157		1,243		1,297			12.6	%
11	Fairmont Newport Beach	6,002			(440		)	-		1,353		-		913			15.2	%
12	Hyatt Chicago Magnificent Mile	3,813			(2,593		)	-		1,950		-		(643		)	-16.9	%
13	Marriott Boston Long Wharf	8,171			(3,073		)	-		2,153		2,486		1,566			19.2	%
14	Hyatt Regency Newport Beach	6,619			242			-		656		-		898			13.6	%
15	Marriott Tysons Corner	4,708			(46		)	-		812		606		1,372			29.1	%
16	Marriott Houston (3)	3,950			100			-		568		311		979			24.8	%
17	Renaissance Long Beach	4,724			139			-		617		411		1,167			24.7	%
18	Embassy Suites Chicago	3,706			(1,426		)	-		879		1,047		500			13.5	%
19	Hilton Garden Inn Chicago Downtown/Magnificent Mile	3,141			(694		)	-		1,109		-		415			13.2	%
20	Renaissance Westchester	4,002			(896		)	394		386		-		(116		)	-2.9	%
21	Embassy Suites La Jolla	4,448			(224		)	-		903		1,149		1,828			41.1	%
22	Marriott Philadelphia	3,947			(208		)	-		475		369		636			16.1	%
23	Marriott Portland	2,775			646			-		294		-		940			33.9	%
24	Sheraton Cerritos	2,933			261			-		427		-		688			23.5	%
25	Marriott Park City	4,286			1,288			-		350		204		1,842			43.0	%
26	Courtyard by Marriott Los Angeles	2,621			523			-		306		-		829			31.6	%
	Comparable Portfolio (4)	183,805			(10,689		)	2,118		33,634		17,757		42,820			23.3	%
	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	$	176,851		$	(7,402	)	$	2,118	$	30,575	$	17,757	$	43,048		24.3	%
	*Footnotes on page 53.

APPENDIX Page 51  

Supplemental Financial Information – Unaudited February 19, 2013

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	Renaissance Harborplace	7,539		(2,389)		-		2,003		1,370		984		13.1%
5	Renaissance Los Angeles Airport	5,293		44		-		709		-		753		14.2%
6	JW Marriott New Orleans	7,229		626		1		1,148		573		2,348		32.5%
7	Hilton North Houston	5,318		(323)		-		816		479		972		18.3%
8	Marriott Quincy	4,075		(857)		-		1,105		-		248		6.1%
9	Doubletree Guest Suites Times Square (1)	11,448		(2,582)		1,045		2,039		1,023		1,525		13.3%
10	Hilton Times Square	9,404		(2,578)		352		2,333		1,238		1,345		14.3%
11	Fairmont Newport Beach	6,054		(560)		-		1,378		-		818		13.5%
12	Hyatt Chicago Magnificent Mile	3,322		(2,766)		-		1,950		-		(816)		-24.6%
13	Marriott Boston Long Wharf	6,522		(3,624)		-		1,960		2,459		795		12.2%
14	Hyatt Regency Newport Beach	6,235		367		-		680		-		1,047		16.8%
15	Marriott Tysons Corner	4,325		(240)		-		687		615		1,062		24.6%
16	Marriott Houston	2,905		(479)		-		424		315		260		9.0%
17	Renaissance Long Beach	4,849		275		-		600		416		1,291		26.6%
18	Embassy Suites Chicago (3)	3,431		(2,005)		-		818		1,053		(134)		-3.9%
19	Hilton Garden Inn Chicago Downtown/Magnificent Mile	2,710		(840)		-		1,109		-		269		9.9%
20	Renaissance Westchester	3,406		(367)		-		294		-		(73)		-2.1%
21	Embassy Suites La Jolla	4,194		(496)		-		954		1,157		1,615		38.5%
22	Marriott Philadelphia	3,584		(335)		-		448		374		487		13.6%
23	Marriott Portland	2,411		342		-		282		-		624		25.9%
24	Sheraton Cerritos	2,100		(142)		-		375		-		233		11.1%
25	Marriott Park City	4,485		1,408		-		293		207		1,908		42.5%
26	Courtyard by Marriott Los Angeles	2,031		329		-		174		-		503		24.8%
	Comparable Portfolio (7)	174,034		(11,146)		1,848		31,126		16,696		38,524		22.1%
	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)	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	$	133,290	$	(10,155)	$	1,252	$	22,676	$	14,000	$	27,773	20.8%
	*Footnotes on page 53.

APPENDIX Page 52

Supplemental Financial Information – Unaudited February 19, 2013

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 company transition costs at the Renaissance Westchester.
(3)	Hotel EBITDA for the first quarter of 2012 is impacted by a total of $0.2 million in property tax credits received at the following hotels: Hilton North Houston $56,000; Marriott Houston $43,000; 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 held for investment by the Company as of December 31, 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 company transition costs at the Hilton Times Square.
(7)	Comparable Portfolio for the three months ended March 31, 2011 includes all hotels held for investment by the Company as of December 31, 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 53

Supplemental Financial Information – Unaudited February 19, 2013

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	Renaissance Harborplace		11,299		403		-		1,985		1,286		3,674		32.5%
5	Renaissance Los Angeles Airport		5,668		383		-		702		-		1,085		19.1%
6	JW Marriott New Orleans		8,767		823		1		1,804		763		3,391		38.7%
7	Hilton North Houston		5,656		(226)		-		953		476		1,203		21.3%
8	Marriott Quincy		6,999		1,047		-		1,163		-		2,210		31.6%
9	Doubletree Guest Suites Times Square (1)		17,438		1,533		1,000		1,969		2,097		6,599		37.8%
10	Hilton Times Square		14,321		1,296		270		2,183		1,242		4,991		34.9%
11	Fairmont Newport Beach		6,408		(103)		-		1,349		-		1,246		19.4%
12	Hyatt Chicago Magnificent Mile		7,132		112		143		1,950		-		2,205		30.9%
13	Marriott Boston Long Wharf		12,167		401		-		2,053		2,486		4,940		40.6%
14	Hyatt Regency Newport Beach		7,757		888		-		656		-		1,544		19.9%
15	Marriott Tysons Corner		5,764		695		-		806		602		2,103		36.5%
16	Marriott Houston		3,950		137		-		584		309		1,030		26.1%
17	Renaissance Long Beach		5,207		837		-		606		138		1,581		30.4%
18	Embassy Suites Chicago (3)		7,031		1,630		-		877		1,042		3,549		50.5%
19	Hilton Garden Inn Chicago Downtown/Magnificent Mile		6,057		1,462		-		1,109		-		2,571		42.4%
20	Renaissance Westchester		5,335		276		72		372		-		720		13.5%
21	Embassy Suites La Jolla (3)		4,815		342		-		906		1,146		2,394		49.7%
22	Marriott Philadelphia		4,679		408		-		479		366		1,253		26.8%
23	Marriott Portland		3,400		1,090		-		294		-		1,384		40.7%
24	Sheraton Cerritos		2,962		296		-		421		-		717		24.2%
25	Marriott Park City		1,554		(590)		-		371		203		(16)		-1.0%
26	Courtyard by Marriott Los Angeles		2,764		630		-		309		-		939		34.0%
	Comparable Portfolio (4)		221,829		19,495		1,936		33,476		17,739		72,646		32.7%
	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		$	211,297	$	18,235	$	1,936	$	31,004	$	17,739	$	68,914	32.6%
	*Footnotes on page 56.

APPENDIX Page 54

Supplemental Financial Information – Unaudited February 19, 2013

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	Renaissance Harborplace (3)		11,072		437		-		2,011		1,307			3,755		33.9%
5	Renaissance Los Angeles Airport		5,172		211		-		717		-			928		17.9%
6	JW Marriott New Orleans		7,894		(212)		3		1,774		1,439			3,004		38.1%
7	Hilton North Houston (3)		4,963		(328)		-		819		483			974		19.6%
8	Marriott Quincy		6,333		546		-		1,117		-			1,663		26.3%
9	Doubletree Guest Suites Times Square (1) (3)		16,538		2,210		967		2,070		951			6,198		37.5%
10	Hilton Times Square		13,084		117		269		2,109		1,247			3,742		28.6%
11	Fairmont Newport Beach (3)		6,429		220		-		1,370		-			1,590		24.7%
12	Hyatt Chicago Magnificent Mile		7,522		335		-		1,950		-			2,285		30.4%
13	Marriott Boston Long Wharf		10,656		(491)		-		1,964		2,486			3,959		37.2%
14	Hyatt Regency Newport Beach (3)		7,644		767		-		679		-			1,446		18.9%
15	Marriott Tysons Corner		6,191		973		-		771		618			2,362		38.2%
16	Marriott Houston (3)		3,520		(232)		-		508		317			593		16.8%
17	Renaissance Long Beach		4,692		166		-		604		419			1,189		25.3%
18	Embassy Suites Chicago (3)		6,871		2,123		-		882		1,064			4,069		59.2%
19	Hilton Garden Inn Chicago Downtown/Magnificent Mile		5,445		1,166		-		1,109		-			2,275		41.8%
20	Renaissance Westchester (3)		5,048		333		-		300		-			633		12.5%
21	Embassy Suites La Jolla (3)		4,502		(196)		-		913		1,159			1,876		41.7%
22	Marriott Philadelphia		4,913		665		-		457		375			1,497		30.5%
23	Marriott Portland (3)		3,113		1,013		-		285		-			1,298		41.7%
24	Sheraton Cerritos		2,802		348		-		417		-			765		27.3%
25	Marriott Park City		1,229		(689)		-		320		208			(161)		-13.1%
26	Courtyard by Marriott Los Angeles		1,991		164		-		244		-			408		20.5%
	Comparable Portfolio (7)		205,817		14,075		1,688		32,810		17,655			66,228		32.2%
	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		$	188,786	$	12,487	$	1,758	$	28,834	$	17,343		$	60,422	32.0%
	*Footnotes on page 56.

APPENDIX Page 55

Supplemental Financial Information – Unaudited February 19, 2013

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 company transition costs at the Renaissance Westchester; and $0.1 million in management company 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; Marriott Houston $(33,000); Marriott Portland $48,000; 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 held for investment by the Company as of December 31, 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 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 held for investment by the Company as of December 31, 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 56

Supplemental Financial Information – Unaudited February 19, 2013

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	Renaissance Harborplace (3)		9,785		(186)		-		1,893		1,289		2,996		30.6%
5	Renaissance Los Angeles Airport		5,636		166		-		726		-		892		15.8%
6	JW Marriott New Orleans		5,825		(1,846)		1		1,821		626		602		10.3%
7	Hilton North Houston		5,469		(514)		-		962		480		928		17.0%
8	Marriott Quincy		6,559		724		-		1,136		-		1,860		28.4%
9	Doubletree Guest Suites Times Square (1)		17,134		641		1,425		1,995		1,936		5,997		35.0%
10	Hilton Times Square		13,480		67		270		2,324		1,253		3,914		29.0%
11	Fairmont Newport Beach		7,148		235		-		1,292		-		1,527		21.4%
12	Hyatt Chicago Magnificent Mile		7,593		(663)		32		2,559		-		1,928		25.4%
13	Marriott Boston Long Wharf		13,043		820		-		2,085		2,514		5,419		41.5%
14	Hyatt Regency Newport Beach		8,774		1,309		-		637		-		1,946		22.2%
15	Marriott Tysons Corner		4,633		(23)		-		807		605		1,389		30.0%
16	Marriott Houston		3,713		(227)		-		606		310		689		18.6%
17	Renaissance Long Beach		4,308		239		-		584		-		823		19.1%
18	Embassy Suites Chicago		7,165		1,178		-		872		1,049		3,099		43.3%
19	Hilton Garden Inn Chicago Downtown/Magnificent Mile		5,934		1,503		-		1,121		-		2,624		44.2%
20	Renaissance Westchester		4,563		(64)		-		359		-		295		6.5%
21	Embassy Suites La Jolla		5,462		408		-		908		1,143		2,459		45.0%
22	Marriott Philadelphia		3,753		(191)		-		483		368		660		17.6%
23	Marriott Portland		4,137		1,660		-		290		-		1,950		47.1%
24	Sheraton Cerritos		2,748		226		-		406		-		632		23.0%
25	Marriott Park City		1,897		(326)		-		355		204		233		12.3%
26	Courtyard by Marriott Los Angeles		2,830		654		-		310		-		964		34.1%
	Comparable Portfolio (4)		204,361		4,901		2,178		34,080		17,354		58,513		28.6%
	Prior Ownership Results (5)
	Hilton Garden Inn Chicago Downtown/Magnificent Mile		913		367		-		-		-		367		40.2%
	Actual Portfolio		$	203,448	$	4,534	$	2,178	$	34,080	$	17,354	$	58,146	28.6%
	*Footnotes on page 59.

APPENDIX Page 57

Supplemental Financial Information – Unaudited February 19, 2013

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	Renaissance Harborplace		9,350		(860)		-		2,014		1,330		2,484		26.6%
5	Renaissance Los Angeles Airport		5,329		209		-		724		-		933		17.5%
6	JW Marriott New Orleans		5,413		(2,767)		(1)		1,778		1,667		677		12.5%
7	Hilton North Houston		3,819		(843)		-		888		487		532		13.9%
8	Marriott Quincy		6,676		575		-		1,183		-		1,758		26.3%
9	Doubletree Guest Suites Times Square (1)		17,485		2,218		1,004		2,071		948		6,241		35.7%
10	Hilton Times Square		13,676		370		269		2,154		1,258		4,051		29.6%
11	Fairmont Newport Beach		6,360		(172)		-		1,360		-		1,188		18.7%
12	Hyatt Chicago Magnificent Mile		6,908		283		-		1,950		-		2,233		32.3%
13	Marriott Boston Long Wharf		10,973		(635)		-		2,015		2,514		3,894		35.5%
14	Hyatt Regency Newport Beach		8,996		1,314		-		658		-		1,972		21.9%
15	Marriott Tysons Corner		4,773		(154)		-		800		620		1,266		26.5%
16	Marriott Houston		3,012		(280)		-		556		319		595		19.8%
17	Renaissance Long Beach		4,275		(111)		-		607		421		917		21.5%
18	Embassy Suites Chicago		6,744		830		-		865		1,068		2,763		41.0%
19	Hilton Garden Inn Chicago Downtown/Magnificent Mile		5,254		990		-		1,110		-		2,100		40.0%
20	Renaissance Westchester		4,383		127		-		343		-		470		10.7%
21	Embassy Suites La Jolla		5,392		347		-		895		1,156		2,398		44.5%
22	Marriott Philadelphia		3,972		(145)		-		460		377		692		17.4%
23	Marriott Portland		3,643		1,342		-		287		-		1,629		44.7%
24	Sheraton Cerritos		2,746		193		-		422		-		615		22.4%
25	Marriott Park City		1,838		(348)		-		325		209		186		10.1%
26	Courtyard by Marriott Los Angeles		2,561		509		-		299		-		808		31.6%
	Comparable Portfolio (7)		192,283		(921)		1,722		33,259		17,954		52,014		27.1%
	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		$	180,121	$	(2,194)	$	1,722	$	30,199	$	17,954	$	47,681	26.5%
	*Footnotes on page 59.

APPENDIX Page 58

Supplemental Financial Information – Unaudited February 19, 2013

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 held for investment by the Company as of December 31, 2012. Includes 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 held for investment by the Company as of December 31, 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 59

Supplemental Financial Information – Unaudited February 19, 2013

Property-Level EBITDA Reconciliation

Q4 2012

	Hotels sorted by number of rooms	For the Three Months Ended December 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)		$	27,923	$	261	$	451	$	5,697	$	2,422	$	8,831	31.6%
2	Renaissance Washington DC		20,635		1,247		-		2,388		1,938		5,573		27.0%
3	Renaissance Orlando at SeaWorld ®		14,282		(208)		-		1,857		1,138		2,787		19.5%
4	Renaissance Harborplace		12,845		669		-		1,862		1,279		3,810		29.7%
5	Renaissance Los Angeles Airport		7,051		515		-		732		-		1,247		17.7%
6	JW Marriott New Orleans		9,901		969		2		1,865		422		3,258		32.9%
7	Hilton North Houston		5,325		(369)		-		940		478		1,049		19.7%
8	Marriott Quincy		8,829		1,771		-		1,138		-		2,909		32.9%
9	Doubletree Guest Suites Times Square (1)		21,658		4,920		1,001		2,019		1,797		9,737		45.0%
10	Hilton Times Square		16,569		2,544		269		2,206		1,270		6,289		38.0%
11	Fairmont Newport Beach		6,217		(281)		-		1,289		-		1,008		16.2%
12	Hyatt Chicago Magnificent Mile		7,250		(654)		-		2,149		-		1,495		20.6%
13	Marriott Boston Long Wharf		13,908		270		-		2,092		2,514		4,876		35.1%
14	Hyatt Regency Newport Beach		5,488		(374)		-		629		-		255		4.6%
15	Marriott Tysons Corner		6,774		971		-		796		601		2,368		35.0%
16	Marriott Houston		3,436		(164)		-		588		308		732		21.3%
17	Renaissance Long Beach		5,816		406		199		591		-		1,196		20.6%
18	Embassy Suites Chicago		6,467		1,260		-		863		1,044		3,167		49.0%
19	Hilton Garden Inn Chicago Downtown/Magnificent Mile		5,184		945		-		1,152		-		2,097		40.5%
20	Renaissance Westchester		5,040		188		-		393		-		581		11.5%
21	Embassy Suites La Jolla		4,305		(251)		-		908		1,139		1,796		41.7%
22	Marriott Philadelphia		5,988		727		-		485		364		1,576		26.3%
23	Marriott Portland		3,221		996		-		289		-		1,285		39.9%
24	Sheraton Cerritos		3,016		440		-		412		-		852		28.2%
25	Marriott Park City		1,756		(374)		-		363		202		191		10.9%
26	Courtyard by Marriott Los Angeles (3)		2,610		812		-		307		-		1,119		42.9%
	Comparable Portfolio (4)		231,494		17,236		1,922		34,010		16,916		70,084		30.3%
	Actual Portfolio		$	231,494	$	17,236	$	1,922	$	34,010	$	16,916	$	70,084	30.3%
	*Footnotes on page 62.

APPENDIX Page 60

Supplemental Financial Information – Unaudited February 19, 2013

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(5)		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	Renaissance Harborplace		12,621		242		-		2,015		1,320		3,577		28.3%
5	Renaissance Los Angeles Airport		6,566		311		-		735		-		1,046		15.9%
6	JW Marriott New Orleans		9,209		217		1		1,784		587		2,589		28.1%
7	Hilton North Houston		5,294		(625)		-		944		485		804		15.2%
8	Marriott Quincy		8,656		1,100		-		1,220		-		2,320		26.8%
9	Doubletree Guest Suites Times Square (1)		20,522		3,439		1,004		2,131		2,401		8,975		43.7%
10	Hilton Times Square		15,618		2,219		270		2,363		1,257		6,109		39.1%
11	Fairmont Newport Beach		5,336		(924)		-		1,351		-		427		8.0%
12	Hyatt Chicago Magnificent Mile		6,253		(259)		-		1,950		-		1,691		27.0%
13	Marriott Boston Long Wharf		13,242		(297)		-		2,148		2,513		4,364		33.0%
14	Hyatt Regency Newport Beach		6,002		30		-		657		-		687		11.4%
15	Marriott Tysons Corner		7,130		933		-		812		617		2,362		33.1%
16	Marriott Houston		3,048		(625)		-		562		316		253		8.3%
17	Renaissance Long Beach		5,467		131		-		610		418		1,159		21.2%
18	Embassy Suites Chicago		5,841		(509)		-		874		1,064		1,429		24.5%
19	Hilton Garden Inn Chicago Downtown/Magnificent Mile		4,837		723		-		1,109		-		1,832		37.9%
20	Renaissance Westchester		6,127		396		-		375		-		771		12.6%
21	Embassy Suites La Jolla		4,047		(460)		-		900		1,152		1,592		39.3%
22	Marriott Philadelphia		6,030		723		-		468		375		1,566		26.0%
23	Marriott Portland		2,983		814		-		290		-		1,104		37.0%
24	Sheraton Cerritos		2,774		331		-		425		-		756		27.3%
25	Marriott Park City		1,665		(427)		-		342		207		122		7.3%
26	Courtyard by Marriott Los Angeles		2,315		156		-		306		-		462		20.0%
	Comparable Portfolio (6)		225,322		11,355		1,725		33,889		18,300		65,269		29.0%
	Prior Ownership Results (7)
	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		$	214,232	$	10,891	$	1,725	$	30,830	$	18,300	$	61,746	28.8%
	*Footnotes on page 62.

APPENDIX Page 61

Supplemental Financial Information – Unaudited February 19, 2013

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, 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 $0.2 million in hotel laundry closure costs at the Renaissance Long Beach.
(3)	Hotel EBITDA for the fourth quarter of 2012 is impacted by a $0.2 million credit related to prior year property tax expense at the Courtyard by Marriott Los Angeles.
(4)	Comparable Portfolio for the three months ended December 31, 2012 includes all hotels held for investment by the Company as of December 31, 2012.
(5)	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.
(6)	Comparable Portfolio for the three months ended December 31, 2011 includes all hotels held for investment by the Company as of December 31, 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.
(7)	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 62

Supplemental Financial Information – Unaudited February 19, 2013

Property-Level EBITDA Reconciliation

FY 2012

	Hotels sorted by number of rooms	For the Year Ended December 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) (3)		$	120,138	$	7,058	$	1,801	$	22,742	$	9,909	$	41,510	34.6%
2	Renaissance Washington DC		65,152		(18)		-		8,260		7,796		16,038		24.6%
3	Renaissance Orlando at SeaWorld ®		54,992		2,418		-		7,633		4,569		14,620		26.6%
4	Renaissance Harborplace (3)		40,976		(1,702)		-		7,768		5,150		11,216		27.4%
5	Renaissance Los Angeles Airport		24,032		1,442		-		2,848		-		4,290		17.9%
6	JW Marriott New Orleans		32,805		482		5		7,288		2,396		10,171		31.0%
7	Hilton North Houston (3)		22,369		(965)		-		3,800		1,912		4,747		21.2%
8	Marriott Quincy		27,217		3,003		-		4,665		-		7,668		28.2%
9	Doubletree Guest Suites Times Square (1)		68,179		3,926		4,429		7,966		7,786		24,107		35.4%
10	Hilton Times Square		54,624		1,534		1,079		8,870		5,008		16,491		30.2%
11	Fairmont Newport Beach		25,775		(589)		-		5,283		-		4,694		18.2%
12	Hyatt Chicago Magnificent Mile		25,788		(3,798)		175		8,608		-		4,985		19.3%
13	Marriott Boston Long Wharf		47,289		(1,582)		-		8,383		10,000		16,801		35.5%
14	Hyatt Regency Newport Beach		28,638		2,065		-		2,578		-		4,643		16.2%
15	Marriott Tysons Corner		21,879		1,597		-		3,221		2,414		7,232		33.1%
16	Marriott Houston (3)		15,049		(154)		-		2,346		1,238		3,430		22.8%
17	Renaissance Long Beach		20,055		1,621		199		2,398		549		4,767		23.8%
18	Embassy Suites Chicago (3)		24,369		2,642		-		3,491		4,182		10,315		42.3%
19	Hilton Garden Inn Chicago Downtown/Magnificent Mile		20,316		3,216		-		4,491		-		7,707		37.9%
20	Renaissance Westchester		18,940		(496)		466		1,510		-		1,480		7.8%
21	Embassy Suites La Jolla (3)		19,030		275		-		3,625		4,577		8,477		44.5%
22	Marriott Philadelphia		18,367		736		-		1,922		1,467		4,125		22.5%
23	Marriott Portland		13,533		4,392		-		1,167		-		5,559		41.1%
24	Sheraton Cerritos		11,659		1,223		-		1,666		-		2,889		24.8%
25	Marriott Park City		9,493		(2)		-		1,439		813		2,250		23.7%
26	Courtyard by Marriott Los Angeles (3)		10,825		2,619		-		1,232		-		3,851		35.6%
	Comparable Portfolio (4)		841,489		30,943		8,154		135,200		69,766		244,063		29.0%
	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		$	823,090	$	32,603	$	8,154	$	129,669	$	69,766	$	240,192	29.2%
	*Footnotes on page 65.

APPENDIX Page 63

Supplemental Financial Information – Unaudited February 19, 2013

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(6)		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	Renaissance Harborplace (3)	40,582		(2,570		)	-		8,043		5,327		10,800		26.6	%
5	Renaissance Los Angeles Airport	22,360		775			-		2,885		-		3,660		16.4	%
6	JW Marriott New Orleans	29,745		(2,136		)	4		6,484		4,266		8,618		29.0	%
7	Hilton North Houston (3)	19,394		(2,119		)	-		3,467		1,934		3,282		16.9	%
8	Marriott Quincy	25,740		1,364			-		4,625		-		5,989		23.3	%
9	Doubletree Guest Suites Times Square (1) (3)	65,993		5,285			4,020		8,311		5,323		22,939		34.8	%
10	Hilton Times Square	51,782		128			1,160		8,959		5,000		15,247		29.4	%
11	Fairmont Newport Beach (3)	24,179		(1,436		)	-		5,459		-		4,023		16.6	%
12	Hyatt Chicago Magnificent Mile	24,005		(2,407		)	-		7,800		-		5,393		22.5	%
13	Marriott Boston Long Wharf	41,393		(5,047		)	-		8,087		9,972		13,012		31.4	%
14	Hyatt Regency Newport Beach (3)	28,877		2,478			-		2,674		-		5,152		17.8	%
15	Marriott Tysons Corner	22,419		1,512			-		3,070		2,470		7,052		31.5	%
16	Marriott Houston (3)	12,485		(1,616		)	-		2,050		1,267		1,701		13.6	%
17	Renaissance Long Beach	19,283		461			-		2,421		1,674		4,556		23.6	%
18	Embassy Suites Chicago (3)	22,887		439			-		3,439		4,249		8,127		35.5	%
19	Hilton Garden Inn Chicago Downtown/Magnificent Mile	18,246		2,039			-		4,437		-		6,476		35.5	%
20	Renaissance Westchester (3)	18,964		489			-		1,312		-		1,801		9.5	%
21	Embassy Suites La Jolla (3)	18,135		(805		)	-		3,662		4,624		7,481		41.3	%
22	Marriott Philadelphia	18,499		908			-		1,833		1,501		4,242		22.9	%
23	Marriott Portland (3)	12,150		3,511			-		1,144		-		4,655		38.3	%
24	Sheraton Cerritos	10,422		730			-		1,639		-		2,369		22.7	%
25	Marriott Park City	9,217		(56		)	-		1,280		831		2,055		22.3	%
26	Courtyard by Marriott Los Angeles	8,898		1,158			-		1,023		-		2,181		24.5	%
	Comparable Portfolio (7)	797,456		13,363			6,983		131,084		70,605		222,035		27.8	%
	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	$	716,429	$	11,029		$	6,457	$	112,539	$	67,597	$	197,622	27.6	%

*Footnotes on page 65.

APPENDIX Page 64  

Supplemental Financial Information – Unaudited February 19, 2013

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, 2012 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; $0.4 million in hotel laundry closure costs at the Doubletree Guest Suites Times Square; $0.2 million in hotel laundry closure costs at the Renaissance Long Beach; $0.5 million in management company transition costs at the Renaissance Westchester; and $0.2 million in management company transition costs at the Hyatt Chicago Magnificent Mile.
(3)	Hotel EBITDA in 2012 is impacted by: (1) $0.2 million credit related to prior year CAM expense at the Renaissance Harborplace; and (2) a total of $0.5 million in property tax credits net of (assessments) received at the following hotels: Courtyard by Marriott Los Angeles $208,000; Embassy Suites Chicago $611,000; Embassy Suites La Jolla $301,000; Hilton North Houston $56,000; Hilton San Diego Bayfront $(811,000); Marriott Houston $43,000; and Renaissance Harborplace $106,000. Hotel EBITDA in 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; Marriott Houston $(33,000); Marriott Portland $48,000; 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, 2012 includes all hotels held for investment by the Company as of December 31, 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 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 $0.1 million in management company transition costs at the Hilton Times Square.
(7)	Comparable Portfolio for the year ended December 31, 2011 includes all hotels held for investment by the Company as of December 31, 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 65  

Supplemental Financial Information – Unaudited February 19, 2013

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 will convert its accounting to a standard 12-month calendar; however Marriott’s 2013 calendar will contain an additional three days, December 29, 2012 through December 31, 2012. The following details the approximate adjustments that would be required to convert the Company’s 2012 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)	$	183,805	21.8%	$	221,829	26.4%	$	204,361	24.3%	$	231,494		27.5%	$	841,489	100.0%
Marriott-managed room revenue adjustment (2)	4,156			4,923			4,244			(12,463		)		860
	$	187,961	22.3%	$	226,752	26.9%	$	208,605	24.8%	$	219,031		26.0%	$	842,349	100.0%

(1)

Includes the Company’s ownership results and prior ownership results for the 26 hotel portfolio held for investment by the Company as of December 31, 2012.

(2)

Includes the adjustments needed to convert Marriott’s room revenue as reported from a 13-period basis to a standard 12-month calendar basis. Due to the fact that Marriott’s 2012 fiscal year began on December 31, 2011, and ended on December 28, 2012, the conversion to a standard 12-month calendar basis adds $0.9 million in room revenue by subtracting December 31, 2011 from the 2012 fiscal year, and adding December 29, 2012 through December 31, 2012 to the 2012 calendar year.

APPENDIX Page 66