Sunstone Hotel Investors (SHO) 8-K Sunstone Hotel Investors Reports Results for Fourth Quarter and Full Year 2013

Exhibit 99.2

Supplemental Financial Information For the quarter and year ended December 31, 2013 February 20, 2014

Supplemental Financial Information – Unaudited February 20, 2014  

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	9
Condensed Consolidated Balance Sheets Q4 2013 – Q4 2012	10
Consolidated Statements of Operations Q4 & FY 2013/2012	12
Reconciliation of Net Income to EBITDA and Adjusted EBITDA Q4 & FY 2013/2012	13
Reconciliation of Net Income to FFO and Adjusted FFO Q4 & FY 2013/2012	14
Pro Forma Consolidated Statements of Operations Q4 2013 – Q4 2012	15
EARNINGS GUIDANCE	16
Earnings Guidance for Q1 and FY 2014	17
Reconciliation of Net Income (Loss) to Adjusted EBITDA and Adjusted FFO Q1 and FY 2014	19
CAPITALIZATION	20
Comparative Capitalization Q4 2013 – Q4 2012	21
Consolidated Debt Summary Schedule	22
Consolidated Amortization and Debt Maturity Schedule	23
PROPERTY-LEVEL DATA	24

Supplemental Financial Information – Unaudited February 20, 2014  

PROPERTY-LEVEL OPERATING STATISTICS	26
Q4 2013/2012	27
FY 2013/2012	28
OPERATING STATISTICS BY BRAND & GEOGRAPHY	29
Comparable Portfolio Operating Statistics by Brand Q4 & FY 2013/2012	30
Pro Forma Comparable Portfolio Property-Level FY 2013 EBITDA Contribution by Brand	31
Comparable Portfolio Operating Statistics by Region Q4 & FY 2013/2012	32
PROPERTY-LEVEL EBITDA & EBITDA MARGINS	33
Property-Level EBITDA Q4 & FY 2013/2012	34
Property-Level EBITDA Margins Q4 & FY 2013/2012	35
APPENDIX	36
Reconciliation of Pro Forma Net Income (Loss) to EBITDA, Adjusted EBITDA, FFO and Adjusted FFO	37
Property-Level EBITDA Reconciliation	49
2013 Marriott Accounting Conversion	64

Supplemental Financial Information – Unaudited February 20, 2014  

CORPORATE PROFILE, FINANCIAL DISCLOSURES,

AND SAFE HARBOR

CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR Page 3

Supplemental Financial Information – Unaudited February 20, 2014  

About Sunstone

Sunstone Hotel Investors, Inc. (NYSE:SHO) is a lodging real estate investment trust (REIT) that, as of February 20, 2014, has interests in 29 hotels held for investment comprised of 13,753 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 gradually 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 20, 2014  

Forward-Looking Statement

This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,” “will” and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: volatility in the debt or equity markets affecting our ability to acquire or sell hotel assets; international, national and local economic and business conditions, including the likelihood of a 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 20, 2014, 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 20, 2014  

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 and pro forma comparable hotel EBITDA and comparable and pro forma comparable hotel EBITDA margin. These measures should not be considered in isolation or as a substitute for measures of performance in accordance with GAAP. EBITDA, Adjusted EBITDA, FFO, Adjusted FFO, comparable and pro forma comparable hotel EBITDA and comparable and pro forma comparable hotel EBITDA margin as calculated by us, may not be comparable to other companies that do not define such terms exactly as the Company. These non-GAAP measures are used in addition to and in conjunction with results presented in accordance with GAAP. They should not be considered as alternatives to operating profit, cash flow from operations, or any other operating performance measure prescribed by GAAP. These non-GAAP financial measures reflect additional ways of viewing our operations that we believe, when viewed with our GAAP results and the reconciliations to the corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting our business than could be obtained absent this disclosure. We strongly encourage investors to review our financial information in its entirety and not to rely on a single financial measure.

EBITDA is a commonly used measure of performance in many industries. We believe EBITDA is useful to investors in evaluating our operating performance because this measure helps 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 believe the use of EBITDA facilitates comparisons between us and other lodging REITs, hotel owners who are not REITs and other capital-intensive companies. In addition, certain covenants included in our indebtedness use EBITDA as a measure of financial compliance. We also use EBITDA as a measure in determining the value of hotel acquisitions and dispositions.

Historically, we have adjusted EBITDA when evaluating our performance because we believe that the exclusion of certain additional items described below provides useful information to investors regarding our operating performance and that the presentation of Adjusted EBITDA, when combined with the primary GAAP presentation of net income, is beneficial to an investor’s complete understanding of our operating performance.

We believe that the presentation of FFO provides useful information to investors regarding our operating performance because it is a measure of our operations without regard to specified non-cash items such as real estate depreciation and amortization, amortization of lease intangibles, any real estate impairment loss and any gain or loss on sale of real estate assets, all of which are based on historical cost accounting and may be of lesser significance in evaluating our current performance. We believe the use of FFO facilitates comparisons between us and other lodging REITs.

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

CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR Page 6

Supplemental Financial Information – Unaudited February 20, 2014  

We adjust EBITDA and FFO for the following items, which may occur in any period, and refer to these measures as either Adjusted EBITDA or Adjusted FFO:

·Amortization of favorable and unfavorable contracts: we exclude the non-cash amortization of the favorable management contract asset recorded in conjunction with our acquisition of the Hilton Garden Inn Chicago Downtown/Magnificent Mile, along with the favorable tenant lease assets recorded in conjunction with our acquisitions of the Hilton New Orleans St. Charles and the Hyatt Regency San Francisco, and the unfavorable tenant lease liabilities recorded in conjunction with our acquisitions of the Boston Park Plaza, the Hilton Garden Inn Chicago Downtown/Magnificent Mile and the Hyatt Regency San Francisco. The amortization of favorable and unfavorable contracts does not reflect the underlying performance of our hotels.

·Ground rent adjustments: we exclude the non-cash expense incurred from straightlining our ground lease obligations as this expense does not reflect the underlying performance of our hotels.

·Gains or losses from debt transactions: we exclude the effect of finance charges and premiums associated with the extinguishment of debt, including the acceleration of deferred financing costs from the original issuance of the debt being redeemed or retired because, like interest expense, their removal helps investors evaluate and compare the results of our operations from period to period by removing the impact of our capital structure.

·Acquisition costs: under GAAP, costs associated with completed acquisitions are expensed in the year incurred. We exclude the effect of these costs because we believe they are not reflective of the ongoing performance of the Company.

·Consolidated partnership adjustments: we deduct the non-controlling partner’s pro rata share of any EBITDA or FFO adjustments related to our consolidated Hilton San Diego Bayfront partnership.

·Cumulative effect of a change in accounting principle: from time to time, the FASB promulgates new accounting standards that require the consolidated statement of operations to reflect the cumulative effect of a change in accounting principle. We exclude these one-time adjustments because they do not reflect our actual performance for that period.

·Impairment losses: we exclude the effect of impairment losses because we believe that including them in Adjusted EBITDA and Adjusted FFO is not consistent with reflecting the ongoing performance of our remaining assets.

·Other adjustments: we exclude other adjustments such as lawsuit settlement costs (or the reversal of these costs), prior year property tax assessments and/or credits, management company transition costs, and departmental closing costs, including severance, because we do not believe these costs reflect our actual performance and/or the ongoing operations of our hotels.

CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR Page 7

Supplemental Financial Information – Unaudited February 20, 2014  

In addition, to derive Adjusted EBITDA we exclude the non-cash expense incurred with the amortization of deferred stock compensation as this expense does not reflect the underlying performance of our hotels. We also include an adjustment for the cash ground lease expense recorded on the Hyatt Chicago Magnificent Mile’s building lease. Upon acquisition of this hotel, we determined that the building lease was a capital lease, and, therefore, we include a portion of the capital lease payment each month in interest expense. We include an adjustment for ground lease expense on capital leases in order to more accurately reflect the operating performance of the Hyatt Chicago Magnificent Mile. We also exclude the effect of gains and losses on the disposition of depreciable assets because we believe that including them in Adjusted EBITDA is not consistent with reflecting the ongoing performance of our assets. In addition, material gains or losses from the depreciated value of the disposed assets could be less important to investors given that the depreciated asset value often does not reflect its market value.

To derive Adjusted FFO, we also exclude the non-cash gains or losses on our derivatives, as well as the original issuance costs associated with the redemption of preferred stock and any federal and state taxes associated with the application of net operating loss carryforwards. We believe that these items are not reflective of our ongoing finance costs.

Reconciliations of net income and pro forma net income (loss) to EBITDA and Adjusted EBITDA are set forth on page 13 and in the Appendix of this supplemental package.  We believe comparable and pro forma hotel EBITDA and comparable and pro forma hotel EBITDA margin are also useful to investors in evaluating our property-level operating performance. Reconciliations of net income and pro forma net income (loss) to FFO and Adjusted FFO are set forth on page 14 and in the Appendix of this supplemental package.

Our 28 comparable hotels include all hotels held for investment by the Company as of December 31, 2013, except the Boston Park Plaza due to the hotel’s addition of 12 rooms in September 2012 and 100 rooms in January 2013. Our 28 comparable hotels include prior ownership results as applicable in 2013 and 2012 for the Hilton New Orleans St. Charles acquired in May 2013 and the Hyatt Regency San Francisco acquired in December 2013, and in 2012 for the Hyatt Chicago Magnificent Mile acquired in June 2012 and the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired in July 2012. Our 29 pro forma comparable hotels include our comparable portfolio, plus our ownership results and prior ownership results for the Boston Park Plaza which was acquired in July 2013.

CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR Page 8

Supplemental Financial Information – Unaudited February 20, 2014  

CORPORATE FINANCIAL INFORMATION

CORPORATE FINANCIAL INFORMATION Page 9

Supplemental Financial Information – Unaudited February 20, 2014

Condensed Consolidated Balance Sheets

Q4 2013 – Q4 2012

(In thousands)	December 31, 2013 (1)		September 30, 2013 (2)		June 30, 2013 (3)		March 31, 2013 (4)		December 31, 2012 (5)
Assets
Investment in hotel properties:
Land	$	439,304	$	323,164	$	264,637	$	260,939	$	260,939
Buildings & improvements	2,977,458		2,835,056		2,655,644		2,554,898		2,541,024
Furniture, fixtures, & equipment	414,192		387,680		366,536		341,252		329,770
Other	207,878		201,676		188,891		233,980		217,116
	4,038,832		3,747,576		3,475,708		3,391,069		3,348,849
Less accumulated depreciation & amortization	(807,450)		(770,527)		(734,759)		(701,786)		(666,972)
	3,231,382		2,977,049		2,740,949		2,689,283		2,681,877
Other assets, net	39,730		40,947		62,049		52,287		47,238
Current assets:
Cash and cash equivalents	104,363		100,225		123,217		208,313		157,217
Cash proceeds held by accommodator	-		-		72,287		139,434		-
Restricted cash	89,306		84,139		76,711		69,423		78,394
Other current assets, net	44,017		53,326		41,943		44,908		171,949
Total assets	$	3,508,798	$	3,255,686	$	3,117,156	$	3,203,648	$	3,136,675

*Footnotes on following page

CORPORATE FINANCIAL INFORMATION Page 10  

Supplemental Financial Information – Unaudited February 20, 2014

Condensed Consolidated Balance Sheets

Q4 2013 – Q4 2012 (cont.)

(In thousands)	December 31, 2013 (1)		September 30, 2013 (2)		June 30, 2013 (3)		March 31, 2013 (4)		December 31, 2012 (5)
Liabilities
Current liabilities:
Current portion of notes payable	$	23,289	$	23,351	$	20,571	$	19,757	$	18,726
Exchangeable senior notes, less discount (6)	-		-		-		-		57,997
Other current liabilities	96,780		100,997		82,229		87,933		123,282
Total current liabilities	120,069		124,348		102,800		107,690		200,005
Notes payable, less current portion	1,380,786		1,387,006		1,275,626		1,281,112		1,286,666
Capital lease obligations, less current portion	15,586		15,594		15,603		15,615		15,621
Other liabilities	39,958		39,901		38,955		32,583		15,070
Total liabilities	1,556,399		1,566,849		1,432,984		1,437,000		1,517,362
Series C cumulative convertible redeemable preferred stock	-		-		-		100,000		100,000
Equity
Stockholders’ equity:
8% Series A cumulative redeemable preferred stock	-		-		-		-		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	1,809		1,609		1,609		1,608		1,352
Additional paid in capital	2,068,721		1,796,656		1,795,295		1,793,825		1,493,397
Retained earnings	224,364		219,837		205,788		187,005		158,376
Cumulative dividends	(511,444)		(500,001)		(489,558)		(486,047)		(475,144)
Accumulated other comprehensive loss	-		-		-		-		(5,335)
Total stockholders’ equity	1,898,450		1,633,101		1,628,134		1,611,391		1,463,896
Non-controlling interest in consolidated joint ventures	53,949		55,736		56,038		55,257		55,417
Total equity	1,952,399		1,688,837		1,684,172		1,666,648		1,519,313
Total liabilities and equity	$	3,508,798	$	3,255,686	$	3,117,156	$	3,203,648	$	3,136,675

(1) As presented on Form 10-K to be filed in February 2014.

(2) As presented on Form 10-Q filed November 12, 2013.

(3) As presented on Form 10-Q filed August 7, 2013.

(4) As presented on Form 10-Q filed May 8, 2013.

(5) As presented on Form 10-K filed February 25, 2013.

(6) Face value of $58.0 million.

CORPORATE FINANCIAL INFORMATION Page 11  

Supplemental Financial Information – Unaudited February 20, 2014

Consolidated Statements of Operations

Q4 & FY 2013/2012

	Three Months Ended December 31,				Years Ended December 31,
(In thousands, except per share data)	2013		2012		2013		2012
Revenues
Room	$	171,364	$	160,817	$	653,955	$	576,146
Food and beverage	57,796		57,798		213,346		200,810
Other operating	14,735		14,352		56,523		52,128
Total revenues	243,895		232,967		923,824		829,084
Operating expenses
Room	46,023		40,910		170,361		147,932
Food and beverage	39,646		39,333		147,713		139,106
Other operating	4,406		4,391		16,819		16,162
Advertising and promotion	12,540		12,096		47,306		42,474
Repairs and maintenance	9,841		9,251		35,884		32,042
Utilities	6,799		6,760		27,006		25,596
Franchise costs	8,913		8,644		32,932		30,067
Property tax, ground lease and insurance	20,804		16,587		79,004		66,830
Property general and administrative	27,493		26,229		103,454		94,642
Corporate overhead	6,555		5,430		26,671		24,316
Depreciation and amortization	36,235		34,339		137,476		130,907
Total operating expenses	219,255		203,970		824,626		750,074
Operating income	24,640		28,997		99,198		79,010
Interest and other income	743		142		2,821		297
Interest expense	(18,699)		(18,721)		(72,239)		(76,821)
Loss on extinguishment of debt	-		-		(44)		(191)
Income before income taxes and discontinued operations	6,684		10,418		29,736		2,295
Income tax provision	(1,435)		(1,148)		(8,145)		(1,148)
Income from continuing operations	5,249		9,270		21,591		1,147
Income from discontinued operations	-		1,844		48,410		48,410
Net income	5,249		11,114		70,001		49,557
Income from consolidated joint venture attributable to non-controlling interest	(722)		(67)		(4,013)		(1,761)
Distributions to non-controlling interest	(8)		(7)		(32)		(31)
Dividends paid on unvested restricted stock compensation	(100)		-		(201)		-
Preferred stock dividends and redemption charges	(2,300)		(7,437)		(19,013)		(29,748)
Undistributed income allocated to unvested restricted stock compensation	-		(41)		(235)		(203)
Income available to common stockholders	$	2,119	$	3,562	$	46,507	$	17,814
Basic and diluted per share amounts:
Income (loss) from continuing operations available (attributable) to common stockholders	$	0.01	$	0.01	$	(0.01)	$	(0.24)
Income from discontinued operations	-		0.02		0.30		0.38
Basic and diluted income available to common stockholders per common share	$	0.01	$	0.03	$	0.29	$	0.14
Basic and diluted weighted average common shares outstanding	174,119		135,237		161,784		127,027
Dividends declared per common share	$	0.05	$	-	$	0.10	$	-

CORPORATE FINANCIAL INFORMATION Page 12  

Supplemental Financial Information – Unaudited February 20, 2014

Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Q4 & FY 2013/2012

	Three Months Ended				Years Ended
	December 31,				December 31,
(In thousands)	2013		2012		2013		2012
Net income	$	5,249	$	11,114	$	70,001	$	49,557
Operations held for investment:
Depreciation and amortization	36,235		34,339		137,476		130,907
Amortization of lease intangibles	1,028		1,029		4,112		4,113
Interest expense	18,699		18,721		72,239		76,821
Income tax provision	1,435		1,148		8,145		1,148
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest	(722)		(67)		(4,013)		(1,761)
Depreciation and amortization	(807)		(1,424)		(3,956)		(5,685)
Interest expense	(582)		(605)		(2,341)		(2,477)
Discontinued operations:
Depreciation and amortization	-		2,182		-		13,164
Amortization of lease intangibles	-		-		-		14
Interest expense	-		387		99		6,490
EBITDA	60,535		66,824		281,762		272,291
Operations held for investment:
Amortization of deferred stock compensation	1,280		812		4,858		3,466
Amortization of favorable and unfavorable contracts, net	45		114		320		206
Non-cash straightline lease expense	507		694		2,055		2,777
Capital lease obligation interest - cash ground rent	(351)		(351)		(1,404)		(819)
(Gain) loss on sale of assets, net	(7)		(4)		(12)		18
Loss on extinguishment of debt	-		-		44		191
Closing costs - completed acquisitions	395		-		1,678		1,965
Lawsuit settlement costs, net	-		-		358		158
Prior year property tax and CAM adjustments, net	-		-		106		621
Hotel laundry closing costs	-		199		-		623
Non-controlling interests:
Non-cash straightline lease expense	(112)		(111)		(450)		(450)
Prior year property tax adjustments, net	-		-		-		(202)
Discontinued operations:
Gain on sale of assets, net	-		-		(51,620)		(38,292)
Loss on extinguishment of debt	-		-		3,115		-
Lawsuit settlement costs reversal	-		-		-		(48)
	1,757		1,353		(40,952)		(29,786)
Adjusted EBITDA	$	62,292	$	68,177	$	240,810	$	242,505

CORPORATE FINANCIAL INFORMATION Page 13  

Supplemental Financial Information – Unaudited February 20, 2014

Reconciliation of Net Income to FFO and Adjusted FFO

Q4 & FY 2013/2012

	Three Months Ended				Years Ended
	December 31,				December 31,
(In thousands)	2013		2012		2013		2012
Net income	$	5,249	$	11,114	$	70,001	$	49,557
Preferred stock dividends and redemption charges	(2,300)		(7,437)		(19,013)		(29,748)
Operations held for investment:
Real estate depreciation and amortization	35,850		34,005		136,047		129,668
Amortization of lease intangibles	1,028		1,029		4,112		4,113
(Gain) loss on sale of assets, net	(7)		(4)		(12)		18
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest	(722)		(67)		(4,013)		(1,761)
Real estate depreciation and amortization	(807)		(1,424)		(3,956)		(5,685)
Discontinued operations:
Real estate depreciation and amortization	-		2,182		-		13,164
Amortization of lease intangibles	-		-		-		14
Gain on sale of assets, net	-		-		(51,620)		(38,292)
FFO	38,291		39,398		131,546		121,048
Operations held for investment:
Amortization of favorable and unfavorable contracts, net	45		114		320		206
Non-cash straightline lease expense	507		694		2,055		2,777
Write-off of deferred financing fees	-		-		-		3
Non-cash interest related to (gain) loss on derivatives, net	(96)		(189)		(525)		406
Loss on extinguishment of debt	-		-		44		191
Closing costs - completed acquisitions	395		-		1,678		1,965
Lawsuit settlement costs, net	-		-		358		158
Prior year property tax and CAM adjustments, net	-		-		106		621
Hotel laundry closing costs	-		199		-		623
Income tax provision	1,435		1,148		8,145		1,148
Preferred stock redemption charges	-		-		4,770		-
Non-controlling interests:
Non-cash straightline lease expense	(112)		(111)		(450)		(450)
Non-cash interest related to loss on derivative, net	(1)		-		(3)		(1)
Prior year property tax adjustments, net	-		-		-		(202)
Discontinued operations:
Loss on extinguishment of debt	-		-		3,115		-
Write-off of deferred financing fees	-		-		-		185
Lawsuit settlement costs reversal	-		-		-		(48)
	2,173		1,855		19,613		7,582
Adjusted FFO	$	40,464	$	41,253	$	151,159	$	128,630
FFO per diluted share	$	0.22	$	0.29	$	0.81	$	0.95
Adjusted FFO per diluted share	$	0.23	$	0.30	$	0.93	$	1.01
Basic weighted average shares outstanding	174,119		135,237		161,784		127,027
Shares associated with unvested restricted stock awards	639		385		467		274
Diluted weighted average shares outstanding	174,758		135,622		162,251		127,301

CORPORATE FINANCIAL INFORMATION Page 14  

Supplemental Financial Information – Unaudited February 20, 2014

Pro Forma Consolidated Statements of Operations

Q4 2013 – Q4 2012

	Three Months Ended (1)
(Unaudited and in thousands)	Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,
	2013		2013		2013		2013		2012
Revenues
Room	$	183,108	$	199,057	$	202,435	$	156,381	$	189,087
Food and beverage	62,340		57,254		63,645		57,033		66,852
Other operating	15,439		16,686		15,313		14,512		16,507
Total revenues	260,887		272,997		281,393		227,926		272,446
Operating Expenses
Room	50,078		51,833		50,230		46,133		50,578
Food and beverage	43,309		42,545		43,205		42,204		47,067
Other expenses	96,205		97,552		97,172		92,889		97,987
Corporate overhead	6,555		6,586		7,359		6,171		5,430
Depreciation and amortization	38,059		37,786		36,939		39,136		39,460
Total operating expenses	234,206		236,302		234,905		226,533		240,522
Operating Income	26,681		36,695		46,488		1,393		31,924
Equity in earnings unconsolidated joint ventures	-		-		-		-		-
Interest income and other income	743		727		788		746		829
Interest expense	(18,699)		(18,854)		(18,600)		(18,568)		(18,959)
Income (loss) before income taxes and discontinued operations	8,725		18,568		28,676		(16,429)		13,794
Income tax provision	(1,435)		(424)		(129)		(6,157)		(1,148)
Income (loss) from continuing operations	7,290		18,144		28,547		(22,586)		12,646
Income from discontinued operations	-		-		-		48,410		1,844
Net Income	$	7,290	$	18,144	$	28,547	$	25,824	$	14,490
Adjusted EBITDA (2)	$	66,157	$	74,870	$	84,906	$	41,559	$	72,499

(1)

Includes the Company’s ownership results and prior ownership results for the pro forma 29 hotel portfolio held for investment by the Company as of December 31, 2013.  Excludes interest expense and loss on extinguishment of debt on the Senior Notes due to their repayment in 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 by quarter for 2013 can be found  in the Appendix of this supplemental package. Fourth quarter 2012 reflects the adjustments included in Footnote 1 above.

CORPORATE FINANCIAL INFORMATION Page 15  

Supplemental Financial Information – Unaudited February 20, 2014

EARNINGS GUIDANCE

EARNINGS GUIDANCE Page 16  

Supplemental Financial Information – Unaudited February 20, 2014

Earnings Guidance for Q1 and FY 2014

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 unannounced hotel acquisitions, dispositions, re-brandings, management changes, transition costs, prior-year property tax assessments and/or credits, debt repurchases or unannounced financings during 2014.

For the first quarter of 2014, the Company expects:

Metric	Quarter Ended March 31, 2014 Guidance
Comparable Hotel RevPAR Growth	+5.5% - 7.5%
Net Loss ($ millions)	($11) - ($8)
Adjusted EBITDA ($ millions)	$44 - $47
Adjusted FFO ($ millions)	$23 - $26
Adjusted FFO per diluted share	$0.12 - $0.14
Diluted Weighted Average Shares Outstanding	181,600,000

For the full year 2014, the Company expects:

Metric	Year Ended December 31, 2014 Guidance
Comparable Hotel RevPAR Growth	+4.0% - 6.5%
Net Income ($ millions)	$57 - $77
Adjusted EBITDA ($ millions)	$275 - $295
Adjusted FFO ($ millions)	$190 - $210
Adjusted FFO per diluted share	$1.04 - $1.15
Diluted Weighted Average Shares Outstanding	182,100,000

EARNINGS GUIDANCE Page 17  

Supplemental Financial Information – Unaudited February 20, 2014

Earnings Guidance for Q1 and FY 2014

First quarter and full year 2014 guidance are based in part on the following assumptions:

·Full year comparable hotel EBITDA margin expansion of approximately 25 to 125 basis points.

·Full year corporate overhead expense (excluding stock amortization and one-time expenses related to future acquisition closing costs) of approximately $21 million to $22 million.

·Full year interest expense of approximately $69 million, including $3 million in amortization of deferred financing fees.

·Full year preferred dividends of $9.2 million for the Series D cumulative redeemable preferred stock.

EARNINGS GUIDANCE Page 18  

Supplemental Financial Information – Unaudited February 20, 2014

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

Q1 and FY 2014

Reconciliation of Net Income (Loss) to Adjusted EBITDA

	Quarter Ended						Year Ended
	March 31, 2014						December 31, 2014
	Low			High			Low			High
Net income (loss)	$	(10,550	)	$	(7,550	)	$	56,650		$	76,650
Depreciation and amortization	37,000			37,000			148,000			148,000
Amortization of lease intangibles	1,000			1,000			4,000			4,000
Interest expense	17,700			17,700			69,500			69,500
Income tax provision	300			300			1,000			1,000
Non-controlling interests	(3,000		)	(3,000		)	(11,550		)	(11,550		)
Amortization of deferred stock compensation	1,300			1,300			6,000			6,000
Non-cash straightline lease expense	600			600			2,800			2,800
Capital lease obligation interest - cash ground rent	(350		)	(350		)	(1,400		)	(1,400		)
Adjusted EBITDA	$	44,000		$	47,000		$	275,000		$	295,000

Reconciliation of Net Income (Loss) to Adjusted FFO

Net income (loss)	$	(10,550	)	$	(7,550	)	$	56,650		$	76,650
Preferred stock dividends	(2,300		)	(2,300		)	(9,200		)	(9,200		)
Real estate depreciation and amortization	36,450			36,450			146,000			146,000
Non-controlling interests	(2,600		)	(2,600		)	(10,000		)	(10,000		)
Amortization of lease intangibles	1,000			1,000			4,000			4,000
Non-cash straightline lease expense	600			600			2,800			2,800
Adjusted FFO	$	22,600		$	25,600		$	190,250		$	210,250
Adjusted FFO per diluted share	$	0.12		$	0.14		$	1.04		$	1.15
Diluted weighted average shares outstanding	181,600			181,600			182,100			182,100

EARNINGS GUIDANCE Page 19  

Supplemental Financial Information – Unaudited February 20, 2014

CAPITALIZATION

CAPITALIZATION Page 20  

Supplemental Financial Information – Unaudited February 20, 2014

Comparative Capitalization

Q4 2013 – Q4 2012

	Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,
(In thousands, except per share data)	2013		2013		2013		2013		2012
Common Share Price & Dividends
At the end of the quarter	$	13.40	$	12.74	$	12.08	$	12.31	$	10.71
High during quarter ended	$	14.06	$	13.49	$	13.09	$	12.31	$	10.97
Low during quarter ended	$	12.50	$	11.87	$	11.14	$	11.02	$	9.34
Common dividends per share	$	0.05	$	0.05	$	-	$	-	$	-
Common Shares & Units
Common shares outstanding (1)	182,868		182,871		162,871		162,823		158,777
Units outstanding	-		-		-		-		-
Total common shares and units outstanding	182,868		182,871		162,871		162,823		158,777
Capitalization
Market value of common equity	$	2,450,431	$	2,329,777	$	1,967,482	$	2,004,351	$		1,700,502
Liquidation value of preferred equity - Series A (2)	-		-		-		-		-
Liquidation value of preferred equity - Series C (3)	-		-		-		-		100,000
Liquidation value of preferred equity - Series D	115,000		115,000		115,000		115,000		115,000
Consolidated debt (4)	1,404,075		1,410,357		1,415,387		1,300,869		1,305,392
Consolidated total capitalization	3,969,506		3,855,134		3,497,869		3,420,220		3,220,894
Non-controlling interest in consolidated debt	(57,863)		(58,072)		(58,278)		(58,481)		(58,681)
Pro rata total capitalization	$	3,911,643	$	3,797,062	$	3,439,591	$	3,361,739	$		3,162,213
Consolidated debt to total capitalization	35.4%		36.6%		40.5%		38.0%		40.5%
Pro rata debt to pro rata total capitalization	34.4%		35.6%		39.5%		37.0%		39.4%
Consolidated debt and preferred equity to total capitalization	38.3%		39.6%		43.8%		41.4%		47.2%
Pro rata debt and preferred equity to total capitalization	37.4%		38.6%		42.8%		40.4%		46.2%

(1)	Reflects shares outstanding at respective dates. Common shares outstanding at September 30, 2013 includes the effects of the Company's issuance of 20,000,000 shares in November 2013. Common shares outstanding at December 31, 2012 includes the effects of the Company's issuance of 22,000,000 shares in February 2013, and excludes the underwriters' over-allotment of 3,300,000 shares.
(2)	Liquidation value of preferred equity - Series A at December 31, 2012 includes the effects of the Company's redemption of all 7,050,000 shares of its Series A preferred stock on March 1, 2013.
(3)	Liquidation value of preferred equity - Series C at March 31, 2013 includes the effects of the Company's redemption of all 4,102,564 shares of its Series C preferred stock on May 31, 2013.
(4)	Consolidated debt at June 30, 2013 includes $119.2 million of debt assumed in connection with the acquisition of the Boston Park Plaza in July 2013. 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.

CAPITALIZATION Page 21

Supplemental Financial Information – Unaudited February 20, 2014

Consolidated Debt Summary Schedule

(In thousands)		Interest Rate /	Maturity	December 31, 2013		Balance At
Debt	Collateral	Spread	Date	Balance		Maturity
Fixed Rate Debt
Secured Mortgage Debt	Marriott Houston	5.34%	5/1/2015	$	21,623	$	20,706
Secured Mortgage Debt	Marriott Park City	5.34%	5/1/2015	14,096		13,498
Secured Mortgage Debt	Marriott Philadelphia	5.34%	5/1/2015	25,540		24,457
Secured Mortgage Debt	Marriott Tysons Corner	5.34%	5/1/2015	42,193		40,404
Secured Mortgage Debt	JW Marriott New Orleans	5.45%	9/1/2015	39,703		38,174
Secured Mortgage Debt	Renaissance Harborplace	5.13%	1/1/2016	92,389		85,227
Secured Mortgage Debt	Hilton North Houston	5.66%	3/11/2016	31,800		30,579
Secured Mortgage Debt	Renaissance Orlando at SeaWorld®	5.52%	7/1/2016	78,105		72,418
Secured Mortgage Debt	Embassy Suites Chicago	5.58%	3/1/2017	70,967		65,756
Secured Mortgage Debt	Marriott Boston Long Wharf	5.58%	4/11/2017	176,000		176,000
Secured Mortgage Debt	Boston Park Plaza	4.40%	2/1/2018	118,256		109,813
Secured Mortgage Debt	Embassy Suites La Jolla	6.60%	6/1/2019	67,908		62,284
Secured Mortgage Debt	Hilton Times Square	4.97%	11/1/2020	88,139		76,145
Secured Mortgage Debt	Renaissance Washington DC	5.95%	5/1/2021	126,445		106,855
Total Fixed Rate Debt				993,164		922,316
Secured Mortgage Debt	Hilton San Diego Bayfront	L + 3.25%	4/15/2016	231,451		223,330
Secured Mortgage Debt	Doubletree Guest Suites Times Square	L + 3.25%	10/10/2018	179,460		167,738
Credit Facility	Unsecured	L + 1.75% - 3.50%	11/1/2015	-		-
Total Variable Rate Debt				410,911		391,068
TOTAL CONSOLIDATED DEBT				$	1,404,075	$	1,313,384
Preferred Stock
Series D cumulative redeemable preferred		8.00%	perpetual	$	115,000
Debt Statistics
% Fixed Rate Debt				70.7%
% Floating Rate Debt				29.3%
Average Interest Rate (1)				4.86%
Weighted Average Maturity of Debt				3.7 years

(1)  Average Interest Rate on variable-rate debt obligations is calculated based on the variable rates at December 31, 2013 and includes the effect of the Company’s interest rate derivative agreements.

CAPITALIZATION Page 22

Supplemental Financial Information – Unaudited February 20, 2014

Consolidated Amortization and Debt Maturity Schedule

(1)Percent of Current Total Capitalization is calculated by dividing the sum of scheduled principal amortization and maturity payments by the December 31, 2013 pro rata total capitalization as presented on page 21.

CAPITALIZATION Page 23

Supplemental Financial Information – Unaudited February 20, 2014

PROPERTY-LEVEL DATA

PROPERTY-LEVEL DATA   Page 24  

Supplemental Financial Information – Unaudited February 20, 2014

Property-Level Data

Hotel		Location	Brand	Number of Rooms (1)	% of Total Rooms	Ownership Interest	Interest	Leasehold Maturity (2)	Year Acquired
1	Hilton San Diego Bayfront	California	Hilton	1,190	8.66%	75%	Leasehold	2071	2011
2	Boston Park Plaza (3)	Massachusetts	Independent	1,053	7.66%	100%	Fee Simple		2013
3	Renaissance Washington DC	Washington DC	Marriott	807	5.87%	100%	Fee Simple		2005
4	Hyatt Regency San Francisco	California	Hyatt	802	5.84%	100%	Fee Simple		2013
5	Renaissance Orlando at SeaWorld® (4)	Florida	Marriott	781	5.68%	100%	Fee Simple		2005
6	Renaissance Harborplace	Maryland	Marriott	622	4.53%	100%	Leasehold	2085	2005
7	Renaissance Los Angeles Airport	California	Marriott	499	3.63%	100%	Fee Simple		2007
8	JW Marriott New Orleans (5)	Louisiana	Marriott	496	3.61%	100%	Leasehold	2081	2011
9	Hilton North Houston	Texas	Hilton	480	3.49%	100%	Fee Simple		2002
10	Marriott Quincy	Massachusetts	Marriott	464	3.38%	100%	Fee Simple		2007
11	Doubletree Guest Suites Times Square	New York	Hilton	460	3.35%	100%	Leasehold	2127	2011
12	Hilton Times Square	New York	Hilton	460	3.35%	100%	Leasehold	2091	2006
13	Fairmont Newport Beach	California	Fairmont	444	3.23%	100%	Leasehold	2082	2005
14	Hyatt Chicago Magnificent Mile	Illinois	Hyatt	419	3.05%	100%	Leasehold	2097	2012
15	Marriott Boston Long Wharf	Massachusetts	Marriott	412	3.00%	100%	Fee Simple		2007
16	Hyatt Regency Newport Beach	California	Hyatt	407	2.96%	100%	Leasehold	2048	2002
17	Marriott Tysons Corner	Virginia	Marriott	396	2.88%	100%	Fee Simple		2002
18	Marriott Houston	Texas	Marriott	390	2.84%	100%	Fee Simple		2002
19	Renaissance Long Beach	California	Marriott	374	2.72%	100%	Fee Simple		2005
20	Embassy Suites Chicago	Illinois	Hilton	368	2.68%	100%	Fee Simple		2002
21	Hilton Garden Inn Chicago Downtown/Magnificent Mile	Illinois	Hilton	357	2.60%	100%	Fee Simple		2012
22	Renaissance Westchester	New York	Marriott	348	2.53%	100%	Fee Simple		2010
23	Embassy Suites La Jolla	California	Hilton	340	2.47%	100%	Fee Simple		2006
24	Marriott Philadelphia	Pennsylvania	Marriott	289	2.10%	100%	Fee Simple		2002
25	Hilton New Orleans St. Charles	Louisiana	Hilton	250	1.82%	100%	Fee Simple		2013
26	Marriott Portland	Oregon	Marriott	249	1.81%	100%	Fee Simple		2000
27	Sheraton Cerritos	California	Sheraton	203	1.48%	100%	Leasehold	2087	2005
28	Marriott Park City	Utah	Marriott	199	1.45%	100%	Fee Simple		1999
29	Courtyard by Marriott Los Angeles	California	Marriott	185	1.35%	100%	Leasehold	2096	1999
	Total pro forma comparable portfolio			13,744	100%

(1)	As of December 31, 2013, the Company’s total room count was 13,744. In January 2014, the Boston Park Plaza added one room, and in February 2014, the Doubletree Guest Suites Times Square added eight rooms, bringing the Company’s total room count to 13,753 as of the date of this release.
(2)	Assumes the full exercise of all lease extensions.
(3)	On January 1, 2012, the Boston Park Plaza had 941 rooms. The hotel added 12 rooms in September 2012, and an additional 100 rooms in January 2013.
(4)	Reflects 100% economic interest in the Renaissance Orlando at SeaWorld®.
(5)	Hotel is subject to a ground lease that expires in 2081.  In addition, it is also subject to a municipal air rights lease that matures in 2044 that applies only to certain balcony space and is not integral to the hotel operation.

PROPERTY-LEVEL DATA Page 25

Supplemental Financial Information – Unaudited
February 20, 2014

PROPERTY-LEVEL OPERATING STATISTICS

PROPERTY-LEVEL OPERATING STATISTICS Page 26  

Supplemental Financial Information – Unaudited
February 20, 2014

Property-Level Operating Statistics

Q4 2013/2012

	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,
		2013		2012		Variance	2013	2012	Variance	2013		2012		Variance
1	Hilton San Diego Bayfront	$	187.45	$	191.19	-2.0%	78.7%	77.5%	1.5%	$	147.52	$	148.17	-0.4%
2	Renaissance Washington DC	225.63		202.76		11.3%	70.8%	66.4%	3.1%	159.75		134.63		18.7%
3	Hyatt Regency San Francisco (1)	249.85		233.07		7.2%	85.2%	80.8%	5.4%	212.87		188.32		13.0%
4	Renaissance Orlando at SeaWorld ®	124.17		129.08		-3.8%	62.9%	62.4%	-5.4%	78.10		80.55		-3.0%
5	Renaissance Harborplace	163.01		165.76		-1.7%	65.2%	67.9%	4.3%	106.28		112.55		-5.6%
6	Renaissance Los Angeles Airport	112.75		115.04		-2.0%	84.7%	78.5%	9.1%	95.50		90.31		5.7%
7	JW Marriott New Orleans	205.30		165.16		24.3%	77.3%	81.0%	-2.5%	158.70		133.78		18.6%
8	Hilton North Houston	100.69		97.93		2.8%	78.3%	75.5%	3.7%	78.84		73.94		6.6%
9	Marriott Quincy	148.39		146.93		1.0%	74.4%	73.6%	6.1%	110.40		108.14		2.1%
10	Doubletree Guest Suites Times Square	423.61		457.50		-7.4%	98.2%	98.6%	-0.4%	415.99		451.10		-7.8%
11	Hilton Times Square	353.29		364.26		-3.0%	99.3%	98.6%	0.7%	350.82		359.16		-2.3%
12	Fairmont Newport Beach	140.82		133.00		5.9%	62.9%	67.8%	-7.2%	88.58		90.17		-1.8%
13	Hyatt Chicago Magnificent Mile	172.43		171.99		0.3%	76.6%	81.4%	-5.9%	132.08		140.00		-5.7%
14	Marriott Boston Long Wharf	276.48		259.86		6.4%	83.7%	81.6%	5.4%	231.41		212.05		9.1%
15	Hyatt Regency Newport Beach	134.14		122.94		9.1%	78.3%	64.0%	22.3%	105.03		78.68		33.5%
16	Marriott Tysons Corner	135.64		164.37		-17.5%	73.7%	68.2%	13.7%	99.97		112.10		-10.8%
17	Marriott Houston	104.53		94.91		10.1%	77.7%	74.5%	4.3%	81.22		70.71		14.9%
18	Renaissance Long Beach	133.67		130.90		2.1%	66.9%	70.3%	-3.9%	89.43		92.02		-2.8%
19	Embassy Suites Chicago	185.12		194.13		-4.6%	90.4%	85.2%	6.1%	167.35		165.40		1.2%
20	Hilton Garden Inn Chicago Downtown/Magnificent Mile	160.66		168.40		-4.6%	79.4%	86.1%	-7.8%	127.56		144.99		-12.0%
21	Renaissance Westchester	145.57		144.82		0.5%	72.1%	73.2%	-1.5%	104.96		106.01		-1.0%
22	Embassy Suites La Jolla	147.10		151.93		-3.2%	80.0%	74.3%	7.7%	117.68		112.88		4.3%
23	Marriott Philadelphia	157.03		160.35		-2.1%	67.6%	71.8%	-0.7%	106.15		115.13		-7.8%
24	Hilton New Orleans St. Charles (1)	178.83		158.70		12.7%	75.4%	76.0%	-0.8%	134.84		120.61		11.8%
25	Marriott Portland	150.41		141.85		6.0%	84.0%	77.7%	8.1%	126.34		110.22		14.6%
26	Sheraton Cerritos	115.43		107.44		7.4%	90.3%	91.7%	-1.5%	104.23		98.52		5.8%
27	Marriott Park City	142.64		125.58		13.6%	42.0%	53.4%	-21.3%	59.91		67.06		-10.7%
28	Courtyard by Marriott Los Angeles	133.63		136.88		-2.4%	95.8%	93.6%	2.4%	128.02		128.12		-0.1%
	Comparable Portfolio (1)	$	188.01	$	184.49	1.9%	77.3%	75.8%	2.0%	$	145.33	$	139.84	3.9%
	Comparable Portfolio Adjusted for Change in Marriott Calendar (2)	$	188.01	$	185.21	1.5%	77.3%	75.8%	2.0%	$	145.33	$	140.39	3.5%

(1)	Comparable Portfolio includes all 29 hotels held for investment by the Company as of December 31, 2013, excluding the Boston Park Plaza. Includes prior ownership results for the Hilton New Orleans St. Charles acquired on May 1, 2013, and the Hyatt Regency San Francisco acquired on December 2, 2013.
(2)	Beginning in 2013, Marriott switched from a 13-period accounting calendar to a standard 12-month calendar. Includes the Comparable Portfolio adjusted to convert the operating statistics for the Company’s ten Marriott-managed hotels from a 13-period basis as reported in 2012 to a standard 12-month calendar basis.

PROPERTY-LEVEL OPERATING STATISTICS Page 27  

Supplemental Financial Information – Unaudited
February 20, 2014

Property-Level Operating Statistics

FY 2013/2012

	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,
		2013		2012		Variance	2013	2012	Variance	2013		2012		Variance
1	Hilton San Diego Bayfront	$	203.58	$	206.87	-1.6%	84.1%	80.8%	4.1%	$	171.21	$	167.15	2.4%
2	Renaissance Washington DC	215.17		203.49		5.7%	77.4%	68.1%	13.7%	166.54		138.58		20.2%
3	Hyatt Regency San Francisco (1)	244.92		226.07		8.3%	86.5%	82.5%	4.8%	211.86		186.51		13.6%
4	Renaissance Orlando at SeaWorld ®	135.77		135.11		0.5%	74.6%	73.5%	1.5%	101.28		99.31		2.0%
5	Renaissance Harborplace	164.02		161.33		1.7%	72.3%	72.2%	0.1%	118.59		116.48		1.8%
6	Renaissance Los Angeles Airport	113.99		116.86		-2.5%	88.0%	82.6%	6.5%	100.31		96.53		3.9%
7	JW Marriott New Orleans	185.10		167.97		10.2%	80.4%	82.3%	-2.3%	148.82		138.24		7.7%
8	Hilton North Houston	101.22		100.09		1.1%	84.0%	80.7%	4.1%	85.02		80.77		5.3%
9	Marriott Quincy	147.39		146.55		0.6%	74.6%	74.1%	0.7%	109.95		108.59		1.3%
10	Doubletree Guest Suites Times Square	361.84		354.38		2.1%	97.7%	97.9%	-0.2%	353.52		346.94		1.9%
11	Hilton Times Square (2)	317.94		302.25		5.2%	90.1%	98.0%	-8.1%	286.46		296.21		-3.3%
12	Fairmont Newport Beach	143.52		134.41		6.8%	73.2%	74.4%	-1.6%	105.06		100.00		5.1%
13	Hyatt Chicago Magnificent Mile (1) (2)	176.25		158.42		11.3%	69.5%	79.5%	-12.6%	122.49		125.94		-2.7%
14	Marriott Boston Long Wharf	273.71		260.85		4.9%	86.5%	86.4%	0.1%	236.76		225.37		5.1%
15	Hyatt Regency Newport Beach (2)	144.71		131.01		10.5%	75.8%	82.1%	-7.7%	109.69		107.56		2.0%
16	Marriott Tysons Corner	150.62		166.24		-9.4%	68.1%	68.1%	0.0%	102.57		113.21		-9.4%
17	Marriott Houston	105.59		96.94		8.9%	80.2%	79.2%	1.3%	84.68		76.78		10.3%
18	Renaissance Long Beach	141.22		134.25		5.2%	76.7%	75.3%	1.9%	108.32		101.09		7.2%
19	Embassy Suites Chicago	191.06		191.50		-0.2%	87.9%	81.1%	8.4%	167.94		155.31		8.1%
20	Hilton Garden Inn Chicago Downtown/Magnificent Mile (1)	170.34		165.33		3.0%	83.5%	85.0%	-1.8%	142.23		140.53		1.2%
21	Renaissance Westchester (2)	140.35		134.48		4.4%	64.8%	72.5%	-10.6%	90.95		97.50		-6.7%
22	Embassy Suites La Jolla	162.94		161.19		1.1%	84.5%	78.8%	7.2%	137.68		127.02		8.4%
23	Marriott Philadelphia	163.29		162.68		0.4%	69.0%	68.9%	0.1%	112.67		112.09		0.5%
24	Hilton New Orleans St. Charles (1)	161.97		158.36		2.3%	77.3%	78.2%	-1.2%	125.20		123.84		1.1%
25	Marriott Portland	161.48		145.25		11.2%	84.3%	83.1%	1.4%	136.13		120.70		12.8%
26	Sheraton Cerritos	118.40		111.51		6.2%	91.7%	90.4%	1.4%	108.57		100.81		7.7%
27	Marriott Park City	148.31		144.79		2.4%	61.1%	65.0%	-6.0%	90.62		94.11		-3.7%
28	Courtyard by Marriott Los Angeles	141.34		141.50		-0.1%	96.3%	95.1%	1.3%	136.11		134.57		1.1%
	Comparable Portfolio (1)	$	184.65	$	178.75	3.3%	80.2%	79.4%	1.0%	$	148.09	$	141.93	4.3%
	Comparable Portfolio Adjusted for Change in Marriott Calendar (3)	$	184.79	$	178.64	3.4%	80.2%	79.4%	1.0%	$	148.20	$	141.84	4.5%

(1)	Comparable Portfolio includes all 29 hotels held for investment by the Company as of December 31, 2013, excluding the Boston Park Plaza. Includes prior ownership results for the Hyatt Chicago Magnificent Mile acquired on June 4, 2012, the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired on July 19, 2012, the Hilton New Orleans St. Charles acquired on May 1, 2013, and the Hyatt Regency San Francisco acquired on December 2, 2013.
(2)	Operating statistics for 2013 are impacted by major room renovations at the following hotels: the Hilton Times Square; the Hyatt Chicago Magnificent Mile; the Hyatt Regency Newport Beach; and the Renaissance Westchester. These room renovations were substantially complete by June 30, 2013.
(3)	Beginning in 2013, Marriott switched from a 13-period accounting calendar to a standard 12-month calendar. Includes the Comparable Portfolio adjusted to convert the operating statistics for the Company’s ten Marriott-managed hotels from a 13-period basis as reported in 2012 to a standard 12-month calendar basis.

PROPERTY-LEVEL OPERATING STATISTICS Page 28  

Supplemental Financial Information – Unaudited
February 20, 2014

OPERATING STATISTICS BY BRAND & GEOGRAPHY

OPERATING STATISTICS BY BRAND & GEOGRAPHY Page 29  

Supplemental Financial Information – Unaudited
February 20, 2014

Comparable Portfolio Operating Statistics by Brand
Q4 & FY 2013/2012

		For the Three Months Ended December 31,
		2013					2012
	# of Hotels	Occ	ADR		RevPAR		Occ	ADR		RevPAR		RevPAR Change
Marriott	15	72.6%	$	162.50	$	117.98	71.7%	$	157.68	$	113.06	4.4%
Hilton	8	84.4%	$	226.53	$	191.19	83.4%	$	235.22	$	196.17	-2.5%
Hyatt (1)	3	81.2%	$	203.18	$	164.98	76.8%	$	193.60	$	148.68	11.0%
Other (2)	2	71.5%	$	130.76	$	93.49	75.3%	$	123.24	$	92.80	0.7%
Comparable Portfolio (3)	28	77.3%	$	188.01	$	145.33	75.8%	$	184.49	$	139.84	3.9%
Comparable Portfolio Adjusted for Change in Marriott Calendar (4)	28	77.3%	$	188.01	$	145.33	75.8%	$	185.21	$	140.39	3.5%
		For the Years Ended December 31,
		2013					2012
	# of Hotels	Occ	ADR		RevPAR		Occ	ADR		RevPAR		RevPAR Change
Marriott	15	76.8%	$	163.04	$	125.21	75.5%	$	157.47	$	118.89	5.3%
Hilton (5)	8	86.3%	$	216.51	$	186.85	84.9%	$	215.67	$	183.10	2.0%
Hyatt (1)	3	79.5%	$	205.61	$	163.46	81.6%	$	185.39	$	151.28	8.1%
Other (2)	2	79.0%	$	134.37	$	106.15	79.4%	$	126.23	$	100.23	5.9%
Comparable Portfolio (3)	28	80.2%	$	184.65	$	148.09	79.4%	$	178.75	$	141.93	4.3%
Comparable Portfolio Adjusted for Change in Marriott Calendar (4)	28	80.2%	$	184.79	$	148.20	79.4%	$	178.64	$	141.84	4.5%

(1)	Hyatt includes prior ownership results as applicable for the Hyatt Chicago Magnificent Mile acquired on June 4, 2012, and the Hyatt Regency San Francisco acquired on December 2, 2013.
(2)	Other includes Fairmont and Sheraton.
(3)	Comparable Portfolio includes all 29 hotels held for investment by the Company as of December 31, 2013, excluding the Boston Park Plaza. Includes prior ownership results as applicable for the Hyatt Chicago Magnificent Mile acquired on June 4, 2012, the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired on July 19, 2012, the Hilton New Orleans St. Charles acquired on May 1, 2013, and the Hyatt Regency San Francisco acquired on December 2, 2013.
(4)	Beginning in 2013, Marriott switched from a 13-period accounting calendar to a standard 12-month calendar. Includes the Comparable Portfolio adjusted to convert the operating statistics for the Company’s ten Marriott-managed hotels from a 13-period basis as reported in 2012 to a standard 12-month calendar basis.
(5)	Hilton includes prior ownership results for the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired on July 19, 2012, and the Hilton New Orleans St. Charles acquired on May 1, 2013.

OPERATING STATISTICS BY BRAND & GEOGRAPHY Page 30  

Supplemental Financial Information – Unaudited
February 20, 2014

Pro Forma Comparable Portfolio Property-Level FY 2013 EBITDA Contribution
by Brand

Note: Includes 29 hotel Pro Forma Comparable Portfolio.

OPERATING STATISTICS BY BRAND & GEOGRAPHY Page 31  

Supplemental Financial Information – Unaudited February 20, 2014  

Comparable Portfolio Operating Statistics by Region
Q4 & FY 2013/2012

				For the Three Months Ended December 31,
				2013					2012
			# of Hotels	Occ	ADR		RevPAR		Occ	ADR		RevPAR		RevPAR Change
California (1)			9	79.3%	$	168.67	$	133.76	76.4%	$	163.35	$	124.80	7.2%
Other West			4	73.7%	$	116.20	$	85.64	72.3%	$	109.01	$	78.81	8.7%
Midwest			3	81.9%	$	173.38	$	142.00	84.1%	$	178.07	$	149.76	-5.2%
East			12	75.6%	$	222.66	$	168.33	74.6%	$	215.03	$	160.41	4.9%
Comparable Portfolio (2)			28	77.3%	$	188.01	$	145.33	75.8%	$	184.49	$	139.84	3.9%
Comparable Portfolio Adjusted for Change in Marriott Calendar (3)			28	77.3%	$	188.01	$	145.33	75.8%	$	185.21	$	140.39	3.5%
		��
				For the Years Ended December 31,
				2013					2012
			# of Hotels	Occ	ADR		RevPAR		Occ	ADR		RevPAR		RevPAR Change
California (1)			9	83.4%	$	175.21	$	146.13	81.2%	$	169.45	$	137.59	6.2%
Other West			4	79.5%	$	120.07	$	95.46	78.3%	$	113.80	$	89.11	7.1%
Midwest (4)			3	79.8%	$	179.57	$	143.30	81.7%	$	171.25	$	139.91	2.4%
East (5)			12	78.0%	$	208.30	$	162.47	77.8%	$	202.75	$	157.74	3.0%
Comparable Portfolio (2)			28	80.2%	$	184.65	$	148.09	79.4%	$	178.75	$	141.93	4.3%
Comparable Portfolio Adjusted for Change in Marriott Calendar (3)			28	80.2%	$	184.79	$	148.20	79.4%	$	178.64	$	141.84	4.5%
(1)	California includes prior ownership results for the Hyatt Regency San Francisco acquired on December 2, 2013.
(2)	Comparable Portfolio includes all 29 hotels held for investment by the Company as of December 31, 2013, excluding the Boston Park Plaza. Includes prior ownership results as applicable for the Hyatt Chicago Magnificent Mile acquired on June 4, 2012, the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired on July 19, 2012, the Hilton New Orleans St. Charles acquired on May 1, 2013, and the Hyatt Regency San Francisco acquired on December 2, 2013.
(3)	Beginning in 2013, Marriott switched from a 13-period accounting calendar to a standard 12-month calendar. Includes the Comparable Portfolio adjusted to convert the operating statistics for the Company’s ten Marriott-managed hotels from a 13-period basis as reported in 2012 to a standard 12-month calendar basis.
(4)	Midwest includes prior ownership results as applicable for the Hyatt Chicago Magnificent Mile acquired on June 4, 2012, and the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired on July 19, 2012.
(5)	East includes prior ownership results for the Hilton New Orleans St. Charles acquired on May 1, 2013.

OPERATING STATISTICS BY BRAND & GEOGRAPHY Page 32

Supplemental Financial Information – Unaudited February 20, 2014

PROPERTY-LEVEL EBITDA & EBITDA MARGINS

PROPERTY-LEVEL EBITDA & EBITDA MARGINS Page 33

Supplemental Financial Information – Unaudited February 20, 2014  

Property-Level EBITDA
Q4 & FY 2013/2012

	Hotels sorted by number of rooms		For the Three Months Ended December 31,					For the Years Ended December 31,
	(In thousands)		2013		2012			2013		2012
			Hotel EBITDA (2)		Hotel EBITDA (2)		% Change	Hotel EBITDA (2)		Hotel EBITDA (2)		% Change
1	Hilton San Diego Bayfront (1) (5)		$	8,889	$	8,831	1%	$	43,056	$	41,510	4%
2	Boston Park Plaza (6)		4,134		3,714		11%	18,636		17,077		9%
3	Renaissance Washington DC (4)		4,954		5,573		-11%	22,855		16,038		43%
4	Hyatt Regency San Francisco		4,082		3,470		18%	16,870		12,611		34%
5	Renaissance Orlando at SeaWorld ® (4)		2,099		2,787		-25%	13,599		14,620		-7%
6	Renaissance Harborplace (4) (5)		2,557		3,810		-33%	11,335		11,216		1%
7	Renaissance Los Angeles Airport (4)		1,303		1,247		4%	5,159		4,290		20%
8	JW Marriott New Orleans (4)		3,812		3,258		17%	12,902		10,171		27%
9	Hilton North Houston (5)		1,251		1,049		19%	4,346		4,747		-8%
10	Marriott Quincy (3) (4)		1,997		2,909		-31%	8,119		7,668		6%
11	Doubletree Guest Suites Times Square (1)		8,169		9,737		-16%	23,751		24,107		-1%
12	Hilton Times Square (3)		5,752		6,289		-9%	14,807		16,491		-10%
13	Fairmont Newport Beach		804		1,008		-20%	5,094		4,694		9%
14	Hyatt Chicago Magnificent Mile (3)		1,454		1,495		-3%	2,534		4,985		-49%
15	Marriott Boston Long Wharf (4)		4,438		4,876		-9%	18,786		16,801		12%
16	Hyatt Regency Newport Beach (3)		947		255		271%	4,402		4,643		-5%
17	Marriott Tysons Corner (4)		1,429		2,368		-40%	5,943		7,232		-18%
18	Marriott Houston (5)		1,266		732		73%	3,866		3,430		13%
19	Renaissance Long Beach (4)		885		1,196		-26%	5,630		4,767		18%
20	Embassy Suites Chicago (3) (5)		2,454		3,167		-23%	10,109		10,315		-2%
21	Hilton Garden Inn Chicago Downtown/Magnificent Mile (3)		1,364		2,097		-35%	7,250		7,707		-6%
22	Renaissance Westchester (3)		896		581		54%	776		1,480		-48%
23	Embassy Suites La Jolla (5)		1,667		1,796		-7%	8,547		8,477		1%
24	Marriott Philadelphia (4)		1,019		1,576		-35%	4,615		4,125		12%
25	Hilton New Orleans St. Charles (3)		1,181		864		37%	4,580		4,625		-1%
26	Marriott Portland		1,482		1,285		15%	6,471		5,559		16%
27	Sheraton Cerritos		836		852		-2%	3,285		2,889		14%
28	Marriott Park City		46		191		-76%	2,013		2,250		-11%
29	Courtyard by Marriott Los Angeles (5)		843		1,119		-25%	3,722		3,851		-3%
	Pro Forma Comparable Portfolio (29 Hotels) (6)		$	72,010	$	78,132	-8%	$	293,058	$	278,376	5%
	(1)	Reflects 100% ownership.
	(2)	Reconciliations to Net Income (Loss) provided on pages 58, 59, 61 and 62.
	(3)	Hotel EBITDA for the fourth quarter of 2013 is impacted by an additional expense of $0.3 million related to fees incurred for a successful real estate tax appeal at the Hilton New Orleans St. Charles, the benefit of which will not be recorded until 2014.  In addition, Hotel EBITDA for the full year 2013 is impacted by major room renovations during the first half of the year at the following hotels: Hilton Times Square; Hyatt Chicago Magnificent Mile; Hyatt Regency Newport Beach; and Renaissance Westchester. Hotel EBITDA for the full year 2013 is also impacted by: (1) additional expense of $0.3 million related to fees incurred for a successful real estate tax appeal at the Hilton New Orleans St. Charles, the benefit of which will not be recorded until 2014; and (2) a total of $0.1 million in prior year property tax (assessments) net of credits received at the following hotels: Embassy Suites Chicago $(168,000); Hilton Garden Inn Chicago Downtown/Magnificent Mile $(91,000); Hyatt Chicago Magnificent Mile $(223,000); and Marriott Quincy $376,000.
	(4)	Hotel EBITDA at the Company’s 10 Marriott-managed hotels is impacted by Marriott’s conversion in 2013 from a 13-period fiscal calendar to a standard 12-month calendar, which caused there to be 20 less days in the fourth quarter of 2013 as compared to the fourth quarter of 2012.
	(5)	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. Hotel EBITDA for the full year 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.
	(6)	Pro Forma Comparable Portfolio for the three months and years ended December 31, 2013 and 2012 includes all 29 hotels held for investment by the Company as of December 31, 2013. Includes the Company’s ownership results, prior ownership results and the Company’s pro forma depreciation and interest expense as applicable for the Hyatt Chicago Magnificent Mile acquired on June 4, 2012, the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired on July 19, 2012, the Hilton New Orleans St. Charles acquired on May 1, 2013, the Boston Park Plaza acquired on July 2, 2013, and the Hyatt Regency San Francisco acquired on December 2, 2013. Prior ownership for the Boston Park Plaza includes management fees reported at the prior owner’s expense of 4.0% of total revenues. Based on the Company’s current contract with the hotel’s third-party manager which assesses management fees at 2.5%, the hotel’s EBITDA would have been $4.0 million for the three months ended December 31, 2012, and $19.1 million and $18.1 million for the years ended December 31, 2013 and 2012, respectively.

PROPERTY-LEVEL EBITDA & EBITDA MARGINS Page 34

Supplemental Financial Information – Unaudited February 20, 2014

Property-Level EBITDA Margins
Q4 & FY 2013/2012

	Hotels sorted by number of rooms			For the Three Months Ended December 31,			For the Years Ended December 31,
				2013	2012		2013	2012
				Hotel EBITDA	Hotel EBITDA	Change in	Hotel EBITDA	Hotel EBITDA	Change in
				Margin	Margin	bps	Margin	Margin	bps
1	Hilton San Diego Bayfront (1) (4)			31.1%	31.6%	(50) bps	35.3%	34.6%	70  bps
2	Boston Park Plaza (5)			23.5%	23.1%	40  bps	26.4%	25.8%	60  bps
3	Renaissance Washington DC			26.5%	27.0%	(50) bps	29.4%	24.6%	480  bps
4	Hyatt Regency San Francisco			18.0%	17.0%	100  bps	19.4%	16.1%	330  bps
5	Renaissance Orlando at SeaWorld ®			18.8%	19.5%	(70) bps	25.3%	26.6%	(130) bps
6	Renaissance Harborplace (4)			25.8%	29.7%	(390) bps	27.3%	27.4%	(10) bps
7	Renaissance Los Angeles Airport			21.1%	17.7%	340  bps	20.6%	17.9%	270  bps
8	JW Marriott New Orleans			40.3%	32.9%	740  bps	36.5%	31.0%	550  bps
9	Hilton North Houston (4)			22.8%	19.7%	310  bps	19.5%	21.2%	(170) bps
10	Marriott Quincy (3)			27.7%	32.9%	(520) bps	28.9%	28.2%	70  bps
11	Doubletree Guest Suites Times Square (1)			40.6%	45.0%	(440) bps	34.3%	35.4%	(110) bps
12	Hilton Times Square (2)			35.6%	38.0%	(240) bps	28.2%	30.2%	(200) bps
13	Fairmont Newport Beach			13.8%	16.2%	(240) bps	19.3%	18.2%	110  bps
14	Hyatt Chicago Magnificent Mile (2) (3)			19.6%	20.6%	(100) bps	10.1%	19.3%	(920) bps
15	Marriott Boston Long Wharf			35.1%	35.1%	-bps	37.0%	35.5%	150  bps
16	Hyatt Regency Newport Beach (2)			13.7%	4.6%	910  bps	15.3%	16.2%	(90) bps
17	Marriott Tysons Corner			28.5%	35.0%	(650) bps	30.0%	33.1%	(310) bps
18	Marriott Houston (4)			31.7%	21.3%	1,040  bps	24.6%	22.8%	180  bps
19	Renaissance Long Beach			18.7%	20.6%	(190) bps	25.9%	23.8%	210  bps
20	Embassy Suites Chicago (3) (4)			37.1%	49.0%	(1,190) bps	38.2%	42.3%	(410) bps
21	Hilton Garden Inn Chicago Downtown/Magnificent Mile (3)			29.6%	40.5%	(1,090) bps	35.4%	37.9%	(250) bps
22	Renaissance Westchester (2)			16.9%	11.5%	540  bps	4.5%	7.8%	(330) bps
23	Embassy Suites La Jolla (4)			37.5%	41.7%	(420) bps	42.3%	44.5%	(220) bps
24	Marriott Philadelphia			23.9%	26.3%	(240) bps	25.6%	22.5%	310  bps
25	Hilton New Orleans St. Charles (3)			33.5%	28.8%	470  bps	35.7%	37.7%	(200) bps
26	Marriott Portland			41.9%	39.9%	200  bps	43.5%	41.1%	240  bps
27	Sheraton Cerritos			26.9%	28.2%	(130) bps	26.3%	24.8%	150  bps
28	Marriott Park City			3.1%	10.9%	(780) bps	22.2%	23.7%	(150) bps
29	Courtyard by Marriott Los Angeles (4)			32.0%	42.9%	(1,090) bps	33.9%	35.6%	(170) bps
	Pro Forma Comparable Portfolio (29 Hotels) (5)			27.8%	28.8%	(100) bps	28.3%	27.9%	40  bps
	Pro Forma Comparable Portfolio without renovation hotels (25 Hotels) (2)			28.2%	29.4%	(120) bps	29.6%	28.8%	80  bps
	Comparable Portfolio (28 Hotels) (6)			28.1%	29.2%	(110) bps	28.4%	28.0%	40  bps
	Adjusted Comparable Portfolio (28 Hotels) (7)			28.2%	29.1%	(90) bps	28.4%	28.0%	40  bps
		(1)	Reflects 100% ownership.
		(2)	Hotel EBITDA for the year ended December 31, 2013 is impacted by major room renovations during the first half of the year at the following hotels: Hilton Times Square; Hyatt Chicago Magnificent Mile; Hyatt Regency Newport Beach; and Renaissance Westchester. Excluding these four hotels, EBITDA margins for our Pro Forma Comparable Portfolio would have been 28.2% and 29.4% for the three months ended December 31, 2013 and 2012, respectively, and 29.6% and 28.8% for the years ended December 31, 2013 and 2012, respectively.
		(3)	Hotel EBITDA for the fourth quarter of 2013 is impacted by an additional expense of $0.3 million related to fees incurred for a successful real estate tax appeal at the Hilton New Orleans St. Charles, the benefit of which will not be recorded until 2014. Hotel EBITDA for the full year 2013 is also impacted by a total of $0.1 million in prior year property tax (assessments) net of credits received at the following hotels: Embassy Suites Chicago $(168,000); Hilton Garden Inn Chicago Downtown/Magnificent Mile $(91,000); Hyatt Chicago Magnificent Mile $(223,000); and Marriott Quincy $376,000.
		(4)	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. Hotel EBITDA for the full year 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.
		(5)	Pro Forma Comparable Portfolio for the three months and years ended December 31, 2013 and 2012 includes all 29 hotels held for investment by the Company as of December 31, 2013. Includes the Company’s ownership results, prior ownership results and the Company’s pro forma depreciation and interest expense as applicable for the Hyatt Chicago Magnificent Mile acquired on June 4, 2012, the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired on July 19, 2012, the Hilton New Orleans St. Charles acquired on May 1, 2013, the Boston Park Plaza acquired on July 2, 2013, and the Hyatt Regency San Francisco acquired on December 2, 2013. Prior ownership for the Boston Park Plaza includes management fees reported at the prior owner’s expense of 4.0% of total revenues. Based on the Company’s current contract with the hotel’s third-party manager which assesses management fees at 2.5%, the hotel’s EBITDA margins would have been 24.6% for the three months ended December 31, 2012, and 27.1% and 27.3% for the years ended December 31, 2013 and 2012, respectively.
		(6)	Comparable Portfolio represents the Company’s ownership results, prior ownership results and the Company’s pro forma adjustments for depreciation expense as applicable for the 28 Comparable Hotels, which include the Pro Forma Comparable 29 hotels held for investment as of December 31, 2013, excluding the Boston Park Plaza.
		(7)	Adjusted Comparable Portfolio represents the 28 hotel Comparable Portfolio adjusted to exclude the non-current property tax related items noted in Footnotes 3 and 4 above. Excluding these non-current year property tax items, Comparable Portfolio EBITDA margins would have been 28.2% and 29.1% for the three months ended December 31, 2013 and 2012, respectively, and 28.4% and 28.0% for the years ended December 31, 2013 and 2012, respectively.

PROPERTY-LEVEL EBITDA & EBITDA MARGINS Page 35

Supplemental Financial Information – Unaudited February 20, 2014

APPENDIX

APPENDIX Page 36

Supplemental Financial Information – Unaudited February 20, 2014  

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

Q1 2013

	Three Months Ended March 31, 2013
							Acquisition:		Acquisition:			Acquisition:			Repurchase:			Investment:		Issuance:		Redemption:		Redemption:
				Discontinued			Hilton		Boston			Hyatt Regency			Exchangeable			Preferred		Common		Series A Preferred		Series C Preferred		Pro
(In thousands, except per share amounts)	Actual (1)			Operations (2)			New Orleans (3)		Park Plaza (4)			San Francisco (5)			Senior Notes (6)			Equity (7)		Stock (8)		Stock (9)		Stock (10)		Forma (11)
Net income (loss)	$	28,926		$	(48,410	)	$	900	$	(3,790	)	$	(604	)	$	209		$	183	$	-	$	-	$	-	$	(22,586	)
Operations held for investment:
Depreciation and amortization	34,016			-			535		1,849			2,736			-			-		-		-		-		39,136
Amortization of lease intangibles	1,028			-			-		-			-			-			-		-		-		-		1,028
Interest expense	17,414			-			-		1,319			-			(165		)	-		-		-		-		18,568
Income tax provision	6,157			-			-		-			-			-			-		-		-		-		6,157
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest	(297		)	-			-		-			-			-			-		-		-		-		(297		)
Depreciation and amortization	(1,435		)	-			-		-			-			-			-		-		-		-		(1,435		)
Interest expense	(577		)	-			-		-			-			-			-		-		-		-		(577		)
Discontinued operations:
Interest expense	99			(99		)	-		-			-			-			-		-		-		-		-
EBITDA	85,331			(48,509		)	1,435		(622		)	2,132			44			183		-		-		-		39,994
Operations held for investment:
Amortization of deferred stock compensation	1,075			-			-		-			-			-			-		-		-		-		1,075
Amortization of favorable and unfavorable contracts, net	114			-			-		-			-			-			-		-		-		-		114
Non-cash straightline lease expense	693			-			-		-			-			-			-		-		-		-		693
Capital lease obligation interest - cash ground rent	(351		)	-			-		-			-			-			-		-		-		-		(351		)
Loss on extinguishment of debt	44			-			-		-			-			(44		)	-		-		-		-		-
Closing costs - completed acquisitions	147			-			-		-			-			-			-		-		-		-		147
Non-controlling interests:
Non-cash straightline lease expense	(113		)	-			-		-			-			-			-		-		-		-		(113		)
Discontinued operations:
Gain on sale of assets	(51,620		)	51,620			-		-			-			-			-		-		-		-		-
Loss on extinguishment of debt	3,115			(3,115		)	-		-			-			-			-		-		-		-		-
	(46,896		)	48,505			-		-			-			(44		)	-		-		-		-		1,565
Adjusted EBITDA	$	38,435		$	(4	)	$	1,435	$	(622	)	$	2,132		$	-		$	183	$	-	$	-	$	-	$	41,559

*Footnotes on following page

APPENDIX Page 37

Supplemental Financial Information – Unaudited February 20, 2014  

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

Q1 2013

	Three Months Ended March 31, 2013
							Acquisition:		Acquisition:			Acquisition:			Repurchase:			Investment:		Issuance:		Redemption:			Redemption:
				Discontinued			Hilton		Boston			Hyatt Regency			Exchangeable			Preferred		Common		Series A Preferred			Series C Preferred		Pro
(In thousands, except per share amounts)	Actual (1)			Operations (2)			New Orleans (3)		Park Plaza (4)			San Francisco (5)			Senior Notes (6)			Equity (7)		Stock (8)		Stock (9)			Stock (10)		Forma (11)
Net income (loss)	$	28,926		$	(48,410	)	$	900	$	(3,790	)	$	(604	)	$	209		$	183	$	-	$	-		$	-	$	(22,586	)
Preferred stock dividends and redemption charge	(10,903		)	-			-		-			-			-			-		-		6,991			1,612		(2,300		)
Operations held for investment:
Real estate depreciation and amortization	33,672			-			535		1,849			2,736			-			-		-		-			-		38,792
Amortization of lease intangibles	1,028			-			-		-			-			-			-		-		-			-		1,028
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest	(297		)	-			-		-			-			-			-		-		-			-		(297		)
Real estate depreciation and amortization	(1,435		)	-			-		-			-			-			-		-		-			-		(1,435		)
Discontinued operations:
Gain on sale of assets	(51,620		)	51,620			-		-			-			-			-		-		-			-		-
FFO	(629		)	3,210			1,435		(1,941		)	2,132			209			183		-		6,991			1,612		13,202
Operations held for investment:
Amortization of favorable and unfavorable contracts, net	114			-			-		-			-			-			-		-		-			-		114
Non-cash straightline lease expense	693			-			-		-			-			-			-		-		-			-		693
Non-cash interest related to gain on derivatives, net	(157		)	-			-		-			-			-			-		-		-			-		(157		)
Loss on extinguishment of debt	44			-			-		-			-			(44		)	-		-		-			-		-
Closing costs - completed acquisitions	147			-			-		-			-			-			-		-		-			-		147
Income tax provision	6,157			-			-		-			-			-			-		-		-			-		6,157
Preferred stock redemption charge	4,641			-			-		-			-			-			-		-		(4,641		)	-		-
Non-controlling interests:
Non-cash straightline lease expense	(113		)	-			-		-			-			-			-		-		-			-		(113		)
Discontinued operations:
Loss on extinguishment of debt	3,115			(3,115		)	-		-			-			-			-		-		-			-		-
	14,641			(3,115		)	-		-			-			(44		)	-		-		(4,641		)	-		6,841
Adjusted FFO	$	14,012		$	95		$	1,435	$	(1,941	)	$	2,132		$	165		$	183	$	-	$	2,350		$	1,612	$	20,043
FFO per diluted share	$	(0.00	)																								$	0.07
Adjusted FFO per diluted share	$	0.09																									$	0.11
Basic weighted average shares outstanding	151,076																			29,594							180,670
Shares associated with unvested restricted stock awards	305																			-							305
Diluted weighted average shares outstanding	151,381																			29,594							180,975

(1)	Actual represents the Company’s ownership results for the 26 hotels in which the Company had interests as of March 31, 2013.
(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 sold in January 2013.
(3)	Acquisition: Hilton New Orleans St. Charles represents prior ownership results for the hotel which was acquired by the Company on May 1, 2013, adjusted for the Company’s pro forma depreciation expense.
(4)	Acquisition: Boston Park Plaza represents prior ownership results for the hotel which was acquired by the Company on July 2, 2013, adjusted for the Company’s pro forma depreciation and interest expense.
(5)	Acquisition: Hyatt Regency San Francisco represents prior ownership results for the hotel which was acquired by the Company on December 2, 2013, adjusted for the Company’s pro forma depreciation expense.
(6)	Repurchase: Exchangeable Senior Notes represents interest, accretion of discount, deferred finance fee amortization and loss on extinguishment of debt related to the Company’s repurchase of the remaining $58.0 million balance of its 4.6% Exchangeable Senior Notes in January 2013.
(7)	Investment: Preferred Equity represents 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.
(8)	Issuance: Common Stock represents the 25,300,000 shares and the 20,000,000 shares issued by the Company in connection with common stock offerings in February 2013 and November 2013, respectively.
(9)	Redemption: Series A Preferred Stock represents the dividends paid, as well as the redemption charge incurred, by the Company on the 7,050,000 shares of its 8.0% cumulative redeemable preferred stock redeemed by the Company in March 2013.
(10)	Redemption: Series C Preferred Stock represents the dividends paid by the Company on the 4,102,564 shares of its cumulative convertible redeemable preferred stock redeemed by the Company in May 2013.
(11)	Pro Forma represents the Company’s ownership results and prior ownership results for the pro forma 29 hotel portfolio, as well as the effects of the Exchangeable Senior Note repurchase and Preferred Equity Investment in January 2013, the common stock issuances in February 2013 and November 2013, along with the Series A and Series C Preferred Stock redemptions in March 2013 and May 2013, respectively.

APPENDIX Page 38

Supplemental Financial Information – Unaudited February 20, 2014

Reconciliation of Pro Forma Net Income to EBITDA and Adjusted EBITDA

Q2 2013

	Three Months Ended June 30, 2013
				Acquisition:		Acquisition:		Acquisition:		Issuance:		Redemption:
				Hilton		Boston		Hyatt Regency		Common		Series C Preferred		Pro
(In thousands, except per share amounts)	Actual (1)			New Orleans (2)		Park Plaza (3)		San Francisco (4)		Stock (5)		Stock (6)		Forma (7)
Net income	$	20,009		$	448	$	5,233	$	2,857	$	-	$	-	$	28,547
Operations held for investment:
Depreciation and amortization	32,175			179		1,849		2,736		-		-		36,939
Amortization of lease intangibles	1,028			-		-		-		-		-		1,028
Interest expense	17,272			-		1,328		-		-		-		18,600
Income tax provision	129			-		-		-		-		-		129
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest	(1,226		)	-		-		-		-		-		(1,226		)
Depreciation and amortization	(903		)	-		-		-		-		-		(903		)
Interest expense	(592		)	-		-		-		-		-		(592		)
EBITDA	67,892			627		8,410		5,593		-		-		82,522
Operations held for investment:
Amortization of deferred stock compensation	1,241			-		-		-		-		-		1,241
Amortization of favorable and unfavorable contracts, net	115			-		-		-		-		-		115
Non-cash straightline lease expense	342			-		-		-		-		-		342
Capital lease obligation interest - cash ground rent	(351		)	-		-		-		-		-		(351		)
Gain on sale of assets	(5		)	-		-		-		-		-		(5		)
Closing costs - completed acquisitions	690			-		-		-		-		-		690
Lawsuit settlement costs	358			-		-		-		-		-		358
Prior year property tax assessments, net	106			-		-		-		-		-		106
Non-controlling interests:
Non-cash straightline lease expense	(112		)	-		-		-		-		-		(112		)
	2,384			-		-		-		-		-		2,384
Adjusted EBITDA	$	70,276		$	627	$	8,410	$	5,593	$	-	$	-	$	84,906

*Footnotes on following page

APPENDIX Page 39

Supplemental Financial Information – Unaudited February 20, 2014  

Reconciliation of Pro Forma Net Income to FFO and Adjusted FFO

Q2 2013

	Three Months Ended June 30, 2013
			Acquisition:		Acquisition:		Acquisition:		Issuance:		Redemption:
			Hilton		Boston		Hyatt Regency		Common		Series C Preferred			Pro
(In thousands, except per share amounts)	Actual (1)		New Orleans (2)		Park Plaza (3)		San Francisco (4)		Stock (5)		Stock (6)			Forma (7)
Net income	$	20,009	$	448	$	5,233	$	2,857	$	-	$	-		$	28,547
Preferred stock dividends and redemption charge	(3,510)		-		-		-		-		1,210			(2,300		)
Operations held for investment:
Real estate depreciation and amortization	31,831		179		1,849		2,736		-		-			36,595
Amortization of lease intangibles	1,028		-		-		-		-		-			1,028
Gain on sale of assets	(5)		-		-		-		-		-			(5		)
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest	(1,226)		-		-		-		-		-			(1,226		)
Real estate depreciation and amortization	(903)		-		-		-		-		-			(903		)
FFO	47,224		627		7,082		5,593		-		1,210			61,736
Operations held for investment:
Amortization of favorable and unfavorable contracts, net	115		-		-		-		-		-			115
Non-cash straightline lease expense	342		-		-		-		-		-			342
Non-cash interest related to gain on derivatives, net	(260)		-		-		-		-		-			(260		)
Closing costs - completed acquisitions	690		-		-		-		-		-			690
Lawsuit settlement costs	358		-		-		-		-		-			358
Prior year property tax assessments, net	106		-		-		-		-		-			106
Income tax provision	129		-		-		-		-		-			129
Preferred stock redemption charge	129		-		-		-		-		(129		)	-
Non-controlling interests:
Non-cash straightline lease expense	(112)		-		-		-		-		-			(112		)
Non-cash interest related to loss on derivative, net	(1)		-		-		-		-		-			(1		)
	1,496		-		-		-		-		(129		)	1,367
Adjusted FFO	$	48,720	$	627	$	7,082	$	5,593	$	-	$	1,081		$	63,103
FFO per diluted share	$	0.29												$	0.34
Adjusted FFO per diluted share	$	0.30												$	0.35
Basic weighted average shares outstanding	160,843								20,000					180,843
Shares associated with unvested restricted stock awards	385								-					385
Diluted weighted average shares outstanding	161,228								20,000					181,228

(1) Actual represents the Company’s ownership results for the 27 hotels in which the Company had interests as of June 30, 2013.

(2) Acquisition: Hilton New Orleans St. Charles represents prior ownership results for the hotel which was acquired by the Company on May 1, 2013, adjusted for the Company’s pro forma depreciation expense.

(3) Acquisition: Boston Park Plaza represents prior ownership results for the hotel which was acquired by the Company on July 2, 2013, adjusted for the Company’s pro forma depreciation and interest expense.

(4) Acquisition: Hyatt Regency San Francisco represents prior ownership results for the hotel which was acquired by the Company on December 2, 2013, adjusted for the Company’s pro forma depreciation expense.

(5) Issuance: Common Stock represents the 20,000,000 shares issued by the Company in connection with a common stock offering in November 2013.

(6) Redemption: Series C Preferred Stock represents the dividends paid, as well as the redemption charge incurred, by the Company on the 4,102,564 shares of its 6.45% cumulative convertible redeemable preferred stock redeemed by the Company in May 2013.

(7) Pro Forma represents the Company’s ownership results and prior ownership results for the pro forma 29 hotel portfolio, as well as the effects of the Series C Preferred Stock redemption in May 2013 and the common stock issuance in November 2013.

APPENDIX Page 40

Supplemental Financial Information – Unaudited February 20, 2014

Reconciliation of Pro Forma Net Income to EBITDA and Adjusted EBITDA

Q3 2013

	Three Months Ended September 30, 2013
					Acquisition:		Issuance:
					Hyatt Regency		Common		Pro
(In thousands, except per share amounts)		Actual (1)			San Francisco (2)		Stock (3)		Forma (4)
Net income		$	15,817		$	2,327	$	-	$	18,144
Operations held for investment:
Depreciation and amortization		35,050			2,736		-		37,786
Amortization of lease intangibles		1,028			-		-		1,028
Interest expense		18,854			-		-		18,854
Income tax provision		424			-		-		424
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest		(1,768		)	-		-		(1,768		)
Depreciation and amortization		(811		)	-		-		(811		)
Interest expense		(590		)	-		-		(590		)
EBITDA		68,004			5,063		-		73,067
Operations held for investment:
Amortization of deferred stock compensation		1,262			-		-		1,262
Amortization of favorable and unfavorable contracts, net		46			-		-		46
Non-cash straightline lease expense		513			-		-		513
Capital lease obligation interest - cash ground rent		(351		)	-		-		(351		)
Closing costs - completed acquisitions		446			-		-		446
Non-controlling interests:
Non-cash straightline lease expense		(113		)	-		-		(113		)
		1,803			-		-		1,803
Adjusted EBITDA		$	69,807		$	5,063	$	-	$	74,870

*Footnotes on following page

APPENDIX   Page 41  

Supplemental Financial Information – Unaudited February 20, 2014

Reconciliation of Pro Forma Net Income to FFO and Adjusted FFO
Q3 2013

	Three Months Ended September 30, 2013
				Acquisition:		Issuance:
				Hyatt Regency		Common		Pro
(In thousands, except per share amounts)	Actual (1)			San Francisco (2)		Stock (3)		Forma (4)
Net income	$	15,817		$	2,327	$	-	$	18,144
Preferred stock dividends	(2,300		)	-		-		(2,300		)
Operations held for investment:
Real estate depreciation and amortization	34,694			2,736		-		37,430
Amortization of lease intangibles	1,028			-		-		1,028
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest	(1,768		)	-		-		(1,768		)
Real estate depreciation and amortization	(811		)	-		-		(811		)
FFO	46,660			5,063		-		51,723
Operations held for investment:
Amortization of favorable and unfavorable contracts, net	46			-		-		46
Non-cash straightline lease expense	513			-		-		513
Non-cash interest related to gain on derivatives, net	(12		)	-		-		(12		)
Closing costs - completed acquisitions	446			-		-		446
Income tax provision	424			-		-		424
Non-controlling interests:
Non-cash straightline lease expense	(113		)	-		-		(113		)
Non-cash interest related to loss on derivative, net	(1		)	-		-		(1		)
	1,303			-		-		1,303
Adjusted FFO	$	47,963		$	5,063	$	-	$	53,026
FFO per diluted share	$	0.29						$	0.29
Adjusted FFO per diluted share	$	0.30						$	0.29
Basic weighted average shares outstanding	160,856					20,000		180,856
Shares associated with unvested restricted stock awards	517					-		517
Diluted weighted average shares outstanding	161,373					20,000		181,373

(1) Actual represents the Company’s ownership results for the 28 hotels in which the Company had interests as of September 30, 2013.

(2) Acquisition: Hyatt Regency San Francisco represents prior ownership results for the hotel which was acquired by the Company on December 2, 2013, adjusted for the Company’s pro forma depreciation expense.

(3) Issuance: Common Stock represents the 20,000,000 shares issued by the Company in connection with a common stock offering in November 2013.

(4) Pro Forma represents the Company’s ownership results and prior ownership results for the pro forma 29 hotel portfolio, as well as the effects of the common stock issuance in November 2013.

APPENDIX   Page 42  

Supplemental Financial Information – Unaudited February 20, 2014

Reconciliation of Pro Forma Net Income to EBITDA and Adjusted EBITDA

Q4 2013

	Three Months Ended December 31, 2013
					Acquisition:		Issuance:
					Hyatt Regency		Common		Pro
(In thousands, except per share amounts)		Actual (1)			San Francisco (2)		Stock (3)		Forma (4)
Net income		$	5,249		$	2,041	$	-	$	7,290
Operations held for investment:
Depreciation and amortization		36,235			1,824		-		38,059
Amortization of lease intangibles		1,028			-		-		1,028
Interest expense		18,699			-		-		18,699
Income tax provision		1,435			-		-		1,435
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest		(722		)	-		-		(722		)
Depreciation and amortization		(807		)	-		-		(807		)
Interest expense		(582		)	-		-		(582		)
EBITDA		60,535			3,865		-		64,400
Operations held for investment:
Amortization of deferred stock compensation		1,280			-		-		1,280
Amortization of favorable and unfavorable contracts, net		45			-		-		45
Non-cash straightline lease expense		507			-		-		507
Capital lease obligation interest - cash ground rent		(351		)	-		-		(351		)
Gain on sale of assets		(7		)	-		-		(7		)
Closing costs - completed acquisitions		395			-		-		395
Non-controlling interests:
Non-cash straightline lease expense		(112		)	-		-		(112		)
		1,757			-		-		1,757
Adjusted EBITDA		$	62,292		$	3,865	$	-	$	66,157

*Footnotes on following page

APPENDIX   Page 43  

Supplemental Financial Information – Unaudited February 20, 2014

Reconciliation of Pro Forma Net Income to FFO and Adjusted FFO
Q4 2013

	Three Months Ended December 31, 2013
					Acquisition:		Issuance:
					Hyatt Regency		Common		Pro
(In thousands, except per share amounts)		Actual (1)			San Francisco (2)		Stock (3)		Forma (4)
Net income		$	5,249		$	2,041	$	-	$	7,290
Preferred stock dividends		(2,300		)	-		-		(2,300		)
Operations held for investment:
Real estate depreciation and amortization		35,850			1,824		-		37,674
Amortization of lease intangibles		1,028			-		-		1,028
Gain on sale of assets		(7		)	-		-		(7		)
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest		(722		)	-		-		(722		)
Real estate depreciation and amortization		(807		)	-		-		(807		)
FFO		38,291			3,865		-		42,156
Operations held for investment:
Amortization of favorable and unfavorable contracts, net		45			-		-		45
Non-cash straightline lease expense		507			-		-		507
Non-cash interest related to gain on derivatives, net		(96		)	-		-		(96		)
Closing costs - completed acquisitions		395			-		-		395
Income tax provision		1,435			-		-		1,435
Non-controlling interests:
Non-cash straightline lease expense		(112		)	-		-		(112		)
Non-cash interest related to loss on derivative, net		(1		)	-		-		(1		)
		2,173			-		-		2,173
Adjusted FFO		$	40,464		$	3,865	$	-	$	44,329
FFO per diluted share		$	0.22						$	0.23
Adjusted FFO per diluted share		$	0.23						$	0.24
Basic weighted average shares outstanding		174,119					6,739		180,858
Shares associated with unvested restricted stock awards		639					-		639
Diluted weighted average shares outstanding		174,758					6,739		181,497

(1) Actual represents the Company’s ownership results for the 29 hotels in which the Company has interests as of December 31, 2013.

(2) Acquisition: Hyatt Regency San Francisco represents prior ownership results for the hotel which was acquired by the Company on December 2, 2013, adjusted for the Company’s pro forma depreciation expense.

(3) Issuance: Common Stock represents the 20,000,000 shares issued by the Company in connection with a common stock offering in November 2013.

(4) Pro Forma represents the Company’s ownership results and prior ownership results for the pro forma 29 hotel portfolio, as well as the effects of the common stock issuance in November 2013.

APPENDIX   Page 44  

Supplemental Financial Information – Unaudited February 20, 2014  

Reconciliation of Pro Forma Net Income to EBITDA and Adjusted EBITDA

FY 2013

	Year Ended December 31, 2013
							Acquisition:		Acquisition:		Acquisition:		Repurchase:			Investment:		Issuance:		Redemption:		Redemption:
				Discontinued			Hilton		Boston		Hyatt Regency		Exchangeable			Preferred		Common		Series A Preferred		Series C Preferred		Pro
(In thousands, except per share amounts)	Actual (1)			Operations (2)			New Orleans (3)		Park Plaza (4)		San Francisco (5)		Senior Notes (6)			Equity (7)		Stock (8)		Stock (9)		Stock (10)		Forma (11)
Net income	$	70,001		$	(48,410	)	$	1,348	$	1,443	$	6,621	$	209		$	183	$	-	$	-	$	-	$	31,395
Operations held for investment:
Depreciation and amortization	137,476			-			714		3,698		10,032		-			-		-		-		-		151,920
Amortization of lease intangibles	4,112			-			-		-		-		-			-		-		-		-		4,112
Interest expense	72,239			-			-		2,647		-		(165		)	-		-		-		-		74,721
Income tax provision	8,145			-			-		-		-		-			-		-		-		-		8,145
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest	(4,013		)	-			-		-		-		-			-		-		-		-		(4,013		)
Depreciation and amortization	(3,956		)	-			-		-		-		-			-		-		-		-		(3,956		)
Interest expense	(2,341		)	-			-		-		-		-			-		-		-		-		(2,341		)
Discontinued operations:
Interest expense	99			(99		)	-		-		-		-			-		-		-		-		-
EBITDA	281,762			(48,509		)	2,062		7,788		16,653		44			183		-		-		-		259,983
Operations held for investment:
Amortization of deferred stock compensation	4,858			-			-		-		-		-			-		-		-		-		4,858
Amortization of favorable and unfavorable contracts, net	320			-			-		-		-		-			-		-		-		-		320
Non-cash straightline lease expense	2,055			-			-		-		-		-			-		-		-		-		2,055
Capital lease obligation interest - cash ground rent	(1,404		)	-			-		-		-		-			-		-		-		-		(1,404		)
Gain on sale of assets	(12		)	-			-		-		-		-			-		-		-		-		(12		)
Loss on extinguishment of debt	44			-			-		-		-		(44		)	-		-		-		-		-
Closing costs - completed acquisitions	1,678			-			-		-		-		-			-		-		-		-		1,678
Lawsuit settlement costs	358			-			-		-		-		-			-		-		-		-		358
Prior year property tax assessments, net	106			-			-		-		-		-			-		-		-		-		106
Non-controlling interests:
Non-cash straightline lease expense	(450		)	-			-		-		-		-			-		-		-		-		(450		)
Discontinued operations:
Gain on sale of assets	(51,620		)	51,620			-		-		-		-			-		-		-		-		-
Loss on extinguishment of debt	3,115			(3,115		)	-		-		-		-			-		-		-		-		-
	(40,952		)	48,505			-		-		-		(44		)	-		-		-		-		7,509
Adjusted EBITDA	$	240,810		$	(4	)	$	2,062	$	7,788	$	16,653	$	-		$	183	$	-	$	-	$	-	$	267,492

*Footnotes on following page

APPENDIX Page 45

Supplemental Financial Information – Unaudited February 20, 2014  

Reconciliation of Pro Forma Net Income to FFO and Adjusted FFO

FY 2013

	Year Ended December 31, 2013
							Acquisition:		Acquisition:		Acquisition:		Repurchase:			Investment:		Issuance:		Redemption:			Redemption:
				Discontinued			Hilton		Boston		Hyatt Regency		Exchangeable			Preferred		Common		Series A Preferred			Series C Preferred			Pro
(In thousands, except per share amounts)	Actual (1)			Operations (2)			New Orleans (3)		Park Plaza (4)		San Francisco (5)		Senior Notes (6)			Equity (7)		Stock (8)		Stock (9)			Stock (10)			Forma (11)
Net income	$	70,001		$	(48,410	)	$	1,348	$	1,443	$	6,621	$	209		$	183	$	-	$	-		$	-		$	31,395
Preferred stock dividends and redemption charges	(19,013		)	-			-		-		-		-			-		-		6,991			2,822			(9,200		)
Operations held for investment:
Real estate depreciation and amortization	136,047			-			714		3,698		10,032		-			-		-		-			-			150,491
Amortization of lease intangibles	4,112			-			-		-		-		-			-		-		-			-			4,112
Gain on sale of assets	(12		)	-			-		-		-		-			-		-		-			-			(12		)
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest	(4,013		)	-			-		-		-		-			-		-		-			-			(4,013		)
Real estate depreciation and amortization	(3,956		)	-			-		-		-		-			-		-		-			-			(3,956		)
Discontinued operations:
Gain on sale of assets	(51,620		)	51,620			-		-		-		-			-		-		-			-			-
FFO	131,546			3,210			2,062		5,141		16,653		209			183		-		6,991			2,822			168,817
Operations held for investment:
Amortization of favorable and unfavorable contracts, net	320			-			-		-		-		-			-		-		-			-			320
Non-cash straightline lease expense	2,055			-			-		-		-		-			-		-		-			-			2,055
Non-cash interest related to gain on derivatives, net	(525		)	-			-		-		-		-			-		-		-			-			(525		)
Loss on extinguishment of debt	44			-			-		-		-		(44		)	-		-		-			-			-
Closing costs - completed acquisitions	1,678			-			-		-		-		-			-		-		-			-			1,678
Lawsuit settlement costs	358			-			-		-		-		-			-		-		-			-			358
Prior year property tax assessments, net	106			-			-		-		-		-			-		-		-			-			106
Income tax provision	8,145			-			-		-		-		-			-		-		-			-			8,145
Preferred stock redemption charges	4,770			-			-		-		-		-			-		-		(4,641		)	(129		)	-
Non-controlling interests:
Non-cash straightline lease expense	(450		)	-			-		-		-		-			-		-		-			-			(450		)
Non-cash interest related to loss on derivative, net	(3		)	-			-		-		-		-			-		-		-			-			(3		)
Discontinued operations:
Loss on extinguishment of debt	3,115			(3,115		)	-		-		-		-			-		-		-			-			-
	19,613			(3,115		)	-		-		-		(44		)	-		-		(4,641		)	(129		)	11,684
Adjusted FFO	$	151,159		$	95		$	2,062	$	5,141	$	16,653	$	165		$	183	$	-	$	2,350		$	2,693		$	180,501
FFO per diluted share	$	0.81																								$	0.93
Adjusted FFO per diluted share	$	0.93																								$	1.00
Basic weighted average shares outstanding	161,784																	19,023								180,807
Shares associated with unvested restricted stock awards	467																	-								467
Diluted weighted average shares outstanding	162,251																	19,023								181,274

(1) Actual represents the Company’s ownership results for the 29 hotels in which the Company has interests as of December 31, 2013.

(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 sold in January 2013.

(3) Acquisition: Hilton New Orleans St. Charles represents prior ownership results for the hotel which was acquired by the Company on May 1, 2013, adjusted for the Company’s pro forma depreciation expense.

(4) Acquisition: Boston Park Plaza represents prior ownership results for the hotel which was acquired by the Company on July 2, 2013, adjusted for the Company’s pro forma depreciation and interest expense.

(5) Acquisition: Hyatt Regency San Francisco represents prior ownership results for the hotel which was acquired by the Company on December 2, 2013, adjusted for the Company’s pro forma depreciation expense.

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

(7) Investment: Preferred Equity represents 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.

(8) Issuance: Common Stock represents the 25,300,000 shares and the 20,000,000 shares issued by the Company in connection with common stock offerings in February 2013 and November 2013, respectively.

(9) Redemption: Series A Preferred Stock represents the dividends paid, as well as the redemption charge incurred, by the Company on the 7,050,000 shares of its 8.0% cumulative redeemable preferred stock redeemed by the Company in March 2013.

(10) Redemption: Series C Preferred Stock represents the dividends paid, as well as the redemption charge incurred, by the Company on the 4,102,564 shares of its 6.45% cumulative convertible redeemable preferred stock redeemed by the Company in May 2013.

(11) Pro Forma represents the Company’s ownership results and prior ownership results for the pro forma 29 hotel portfolio, as well as the effects of the  Exchangeable Senior Note repurchase and Preferred Equity Investment  in  January 2013, the common stock issuances in February 2013 and November 2013, along with the Series A and Series C Preferred Stock redemptions in March 2013 and May 2013, respectively.

APPENDIX Page 46

Supplemental Financial Information – Unaudited February 20, 2014  

Reconciliation of Pro Forma Net Income to EBITDA and Adjusted EBITDA

FY 2012

Year Ended December 31, 2012

Acquisition:

Acquisition:

Acquisition:

Acquisition:

Acquisition:

Repayment:

Investment:

Issuance:

Redemption:

Redemption:

Discontinued

Hyatt

Hilton Garden Inn

Hilton

Boston

Hyatt Regency

Debt &

Preferred

Common

Series A Preferred

Series C Preferred

Pro

(In thousands, except per share amounts)

Actual (1)

Operations (2)

Chicago (3)

Chicago (4)

New Orleans (5)

Park Plaza (6)

San Francisco (7)

Senior Notes (8)

Equity (9)

Stock (10)

Stock (11)

Stock (12)

Forma (13)

Net income	$	49,557		$	(48,410	)	$	(2,795	)	$	1,135	$	2,484	$	4,364	$	1,667	$	5,135		$	2,750	$	-	$	-	$	-	$	15,887
Operations held for investment:
Depreciation and amortization	130,907			-			3,313			2,218		2,141		7,396		10,944		-			-		-		-		-		156,919
Amortization of lease intangibles	4,113			-			-			-		-		-		-		-			-		-		-		-		4,113
Interest expense	76,821			-			585			-		-		5,317		-		(4,944		)	-		-		-		-		77,779
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	(2,477		)	-			-			-		-		-		-		-			-		-		-		-		(2,477		)
Discontinued operations:
Depreciation and amortization	13,164			(13,164		)	-			-		-		-		-		-			-		-		-		-		-
Amortization of lease intangibles	14			(14		)	-			-		-		-		-		-			-		-		-		-		-
Interest expense	6,490			(6,490		)	-			-		-		-		-		-			-		-		-		-		-
EBITDA	272,291			(68,078		)	1,103			3,353		4,625		17,077		12,611		191			2,750		-		-		-		245,923
Operations held for investment:
Amortization of deferred stock compensation	3,466			-			-			-		-		-		-		-			-		-		-		-		3,466
Amortization of favorable and unfavorable contracts, net	206			-			-			-		-		-		-		-			-		-		-		-		206
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 costs reversal	(48		)	48			-			-		-		-		-		-			-		-		-		-		-
	(29,786		)	38,340			(585		)	-		-		-		-		(191		)	-		-		-		-		7,778
Adjusted EBITDA	$	242,505		$	(29,738	)	$	518		$	3,353	$	4,625	$	17,077	$	12,611	$	-		$	2,750	$	-	$	-	$	-	$	253,701

*Footnotes on following page

APPENDIX Page 47

Supplemental Financial Information – Unaudited February 20, 2014  

Reconciliation of Pro Forma Net Income to FFO and Adjusted FFO

FY 2012

	Year Ended December 31, 2012
							Acquisition:			Acquisition:		Acquisition:		Acquisition:		Acquisition:		Repayment:			Investment:		Issuance:		Redemption:		Redemption:
				Discontinued			Hyatt			Hilton Garden Inn		Hilton		Boston		Hyatt Regency		Debt &			Preferred		Common		Series A Preferred		Series C Preferred		Pro
(In thousands, except per share amounts)	Actual (1)			Operations (2)			Chicago (3)			Chicago (4)		New Orleans (5)		Park Plaza (6)		San Francisco (7)		Senior Notes (8)			Equity (9)		Stock (10)		Stock (11)		Stock (12)		Forma (13)
Net income	$	49,557		$	(48,410	)	$	(2,795	)	$	1,135	$	2,484	$	4,364	$	1,667	$	5,135		$	2,750	$	-	$	-	$	-	$	15,887
Preferred stock dividends	(29,748		)	-			-			-		-		-		-		-			-		-		14,100		6,448		(9,200		)
Operations held for investment:
Real estate depreciation and amortization	129,668			-			3,313			2,218		2,141		7,396		10,944		-			-		-		-		-		155,680
Amortization of lease intangibles	4,113			-			-			-		-		-		-		-			-		-		-		-		4,113
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	121,048			(23,296		)	518			3,353		4,625		11,760		12,611		5,135			2,750		-		14,100		6,448		159,052
Operations held for investment:
Amortization of favorable and unfavorable contracts, net	206			-			-			-		-		-		-		-			-		-		-		-		206
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, net	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 costs reversal	(48		)	48			-			-		-		-		-		-			-		-		-		-		-
	7,582			(137		)	-			-		-		-		-		(194		)	-		-		-		-		7,251
Adjusted FFO	$	128,630		$	(23,433	)	$	518		$	3,353	$	4,625	$	11,760	$	12,611	$	4,941		$	2,750	$	-	$	14,100	$	6,448	$	166,303
FFO per diluted share	$	0.95																											$	0.88
Adjusted FFO per diluted share	$	1.01																											$	0.92
Basic weighted average shares outstanding	127,027																						53,449						180,476
Shares associated with unvested restricted stock awards	274																						-						274
Diluted weighted average shares outstanding	127,301																						53,449						180,750

(1)	Actual represents the Company’s ownership results for the 30 hotels in which the Company had interests as of December 31, 2012, of which 26 hotels were classified as held for investment and four 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 sold 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)	Acquisition: Hilton New Orleans St. Charles represents prior ownership results for the hotel which was acquired by the Company on May 1, 2013, adjusted for the Company’s pro forma depreciation expense.
(6)	Acquisition: Boston Park Plaza represents prior ownership results for the hotel which was acquired by the Company on July 2, 2013, adjusted for the Company’s pro forma depreciation and interest expense.
(7)	Acquisition: Hyatt Regency San Francisco represents prior ownership results for the hotel which was acquired by the Company on December 2, 2013, adjusted for the Company’s pro forma depreciation expense.
(8)	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.
(9)	Investment: Preferred Equity represents 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.
(10)	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, the 25,300,000 shares, and the 20,000,000 shares issued by the Company in connection with common stock offerings in June 2012, February 2013, and November 2013, respectively.
(11)	Redemption: Series A Preferred Stock represents the dividends paid by the Company on the 7,050,000 shares of its 8.0% cumulative redeemable preferred stock redeemed by the Company in March 2013.
(12)	Redemption: Series C Preferred Stock represents the dividends paid by the Company on the 4,102,564 shares of its 6.45% cumulative convertible redeemable preferred stock redeemed by the Company in May 2013.
(13)	Pro Forma represents the Company’s ownership results and prior ownership results for the pro forma 29 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, February 2013, and November 2013, the Preferred Equity Investment in January 2013, along with the Series A and Series C Preferred Stock redemptions in March 2013 and May 2013, respectively.

APPENDIX Page 48

Supplemental Financial Information – Unaudited February 20, 2014

Property-Level EBITDA Reconciliation

Q1 2013

	Hotels sorted by number of rooms	For the Three Months Ended March 31, 2013
							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)	$	29,068	$	1,195		$	450	$	5,742	$	2,307	$	9,694		33.3	%
2	Boston Park Plaza	10,778		(3,790		)	-		1,849		1,319		(622		)	-5.8	%
3	Renaissance Washington DC	19,544		1,253			-		2,471		1,930		5,654			28.9	%
4	Hyatt Regency San Francisco	18,548		(604		)	-		2,736		-		2,132			11.5	%
5	Renaissance Orlando at SeaWorld ®	17,263		2,883			-		1,848		1,107		5,838			33.8	%
6	Renaissance Harborplace	8,252		(1,926		)	-		1,788		1,241		1,103			13.4	%
7	Renaissance Los Angeles Airport	6,334		515			-		749		-		1,264			20.0	%
8	JW Marriott New Orleans	10,755		2,501			1		1,601		416		4,519			42.0	%
9	Hilton North Houston	5,932		(132		)	-		932		476		1,276			21.5	%
10	Marriott Quincy	5,519		(289		)	-		1,141		-		852			15.4	%
11	Doubletree Guest Suites Times Square (1)	13,106		(2,579		)	1,000		2,288		1,757		2,466			18.8	%
12	Hilton Times Square (3)	7,743		(3,867		)	270		2,270		1,230		(97		)	-1.3	%
13	Fairmont Newport Beach	6,302		(187		)	-		1,274		-		1,087			17.2	%
14	Hyatt Chicago Magnificent Mile (3)	2,736		(3,427		)	-		1,528		-		(1,899		)	-69.4	%
15	Marriott Boston Long Wharf	9,891		(2,146		)	-		2,096		2,459		2,409			24.4	%
16	Hyatt Regency Newport Beach (3)	4,724		(867		)	-		622		-		(245		)	-5.2	%
17	Marriott Tysons Corner	4,746		(220		)	-		944		584		1,308			27.6	%
18	Marriott Houston	3,981		2			-		575		299		876			22.0	%
19	Renaissance Long Beach	5,715		993			-		601		-		1,594			27.9	%
20	Embassy Suites Chicago	4,103		(1,084		)	-		855		1,016		787			19.2	%
21	Hilton Garden Inn Chicago Downtown/Magnificent Mile	3,272		(683		)	-		1,152		-		469			14.3	%
22	Renaissance Westchester (3)	2,770		(1,382		)	-		404		-		(978		)	-35.3	%
23	Embassy Suites La Jolla	4,719		(181		)	-		907		1,136		1,862			39.5	%
24	Marriott Philadelphia	4,142		(108		)	-		468		355		715			17.3	%
25	Hilton New Orleans St. Charles	3,679		900			-		535		-		1,435			39.0	%
26	Marriott Portland	2,643		534			-		326		-		860			32.5	%
27	Sheraton Cerritos	3,211		472			-		416		-		888			27.7	%
28	Marriott Park City	4,307		1,282			-		368		197		1,847			42.9	%
29	Courtyard by Marriott Los Angeles	2,655		550			-		308		-		858			32.3	%
	Pro Forma Comparable Portfolio (29 Hotels) (4)	226,438		(10,392		)	1,721		38,794		17,829		47,952			21.2	%
	Less: Non-Comparable Hotel (5)
	Boston Park Plaza	10,778		(3,790		)	-		1,849		1,319		(622		)	-5.8	%
	Comparable Portfolio (28 Hotels) (6)	215,660		(6,602		)	1,721		36,945		16,510		48,574			22.5	%
	Less: Prior Ownership (7)
	Hilton New Orleans St. Charles	3,679		900			-		535		-		1,435			39.0	%
	Hyatt Regency San Francisco	18,548		(604		)	-		2,736		-		2,132			11.5	%
	Actual Portfolio (26 Hotels) (8)	$	193,433	$	(6,898	)	$	1,721	$	33,674	$	16,510	$	45,007		23.3	%
	*Footnotes on page 51.

APPENDIX Page 49  

Supplemental Financial Information – Unaudited February 20, 2014  

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
		Total		Net Income /			Other						Hotel			EBITDA
		Revenues		(Loss)			Adjustments (9)		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	Boston Park Plaza	11,209		(3,242		)	-		1,849		1,319		(74		)	-0.7	%
3	Renaissance Washington DC	13,701		(1,374		)	-		1,926		1,960		2,512			18.3	%
4	Hyatt Regency San Francisco	18,139		(546		)	-		2,736		-		2,190			12.1	%
5	Renaissance Orlando at SeaWorld ®	15,650		2,454			-		1,969		1,146		5,569			35.6	%
6	Renaissance Harborplace (3)	7,047		(2,588		)	-		2,028		1,296		736			10.4	%
7	Renaissance Los Angeles Airport	5,677		378			-		688		-		1,066			18.8	%
8	JW Marriott New Orleans	8,312		536			1		1,798		585		2,920			35.1	%
9	Hilton North Houston (3)	5,919		144			-		945		478		1,567			26.5	%
10	Marriott Quincy	4,830		(539		)	-		1,228		-		689			14.3	%
11	Doubletree Guest Suites Times Square (1)	11,949		(3,168		)	1,003		1,983		1,956		1,774			14.8	%
12	Hilton Times Square	10,254		(2,373		)	270		2,157		1,243		1,297			12.6	%
13	Fairmont Newport Beach	6,002		(440		)	-		1,353		-		913			15.2	%
14	Hyatt Chicago Magnificent Mile	3,813		(2,593		)	-		1,950		-		(643		)	-16.9	%
15	Marriott Boston Long Wharf	8,171		(3,073		)	-		2,153		2,486		1,566			19.2	%
16	Hyatt Regency Newport Beach	6,619		242			-		656		-		898			13.6	%
17	Marriott Tysons Corner	4,708		(46		)	-		812		606		1,372			29.1	%
18	Marriott Houston (3)	3,950		100			-		568		311		979			24.8	%
19	Renaissance Long Beach	4,724		139			-		617		411		1,167			24.7	%
20	Embassy Suites Chicago	3,706		(1,426		)	-		879		1,047		500			13.5	%
21	Hilton Garden Inn Chicago Downtown/Magnificent Mile	3,141		(694		)	-		1,109		-		415			13.2	%
22	Renaissance Westchester	4,002		(896		)	394		386		-		(116		)	-2.9	%
23	Embassy Suites La Jolla	4,448		(224		)	-		903		1,149		1,828			41.1	%
24	Marriott Philadelphia	3,947		(208		)	-		475		369		636			16.1	%
25	Hilton New Orleans St. Charles	3,542		1,026			-		535		-		1,561			44.1	%
26	Marriott Portland	2,775		646			-		294		-		940			33.9	%
27	Sheraton Cerritos	2,933		261			-		427		-		688			23.5	%
28	Marriott Park City	4,286		1,288			-		350		204		1,842			43.0	%
29	Courtyard by Marriott Los Angeles	2,621		523			-		306		-		829			31.6	%
	Pro Forma Comparable Portfolio (29 Hotels) (4)	216,695		(13,451		)	2,118		38,754		19,076		46,497			21.5	%
	Less: Non-Comparable Hotel (5)
	Boston Park Plaza	11,209		(3,242		)	-		1,849		1,319		(74		)	-0.7	%
	Comparable Portfolio (28 Hotels) (6)	205,486		(10,209		)	2,118		36,905		17,757		46,571			22.7	%
	Less: Prior Ownership (7)
	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	%
	Hilton New Orleans St. Charles	3,542		1,026			-		535		-		1,561			44.1	%
	Hyatt Regency San Francisco	18,139		(546		)	-		2,736		-		2,190			12.1	%
	Actual Portfolio (24 Hotels) (10)	$	176,851	$	(7,402	)	$	2,118	$	30,575	$	17,757	$	43,048		24.3	%
	*Footnotes on page 51.

APPENDIX Page 50

Supplemental Financial Information – Unaudited February 20, 2014

Property-Level EBITDA Reconciliation

Q1 2013/2012 Footnotes

(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, 2013 include: a total of $1.0 million in amortization of lease intangibles at the Doubletree Guest Suites Times Square, Hilton Times Square and JW Marriott New Orleans; and a total of $0.7 million in non-cash straightline lease expense at the Doubletree Guest Suites Times Square, Hilton San Diego Bayfront, Hilton Times Square and JW Marriott New Orleans.
(3)	Hotel EBITDA for the first quarter of 2013 is impacted by major room renovations at the following hotels: the Hilton Times Square; the Hyatt Chicago Magnificent Mile; the Hyatt Regency Newport Beach; and the Renaissance Westchester. 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.
(4)	Pro Forma Comparable Portfolio for the three months ended March 31, 2013 and 2012 includes all hotels held for investment by the Company as of December 31, 2013. Includes prior ownership results and the Company’s pro forma depreciation and interest expense as applicable for the Hyatt Chicago Magnificent Mile acquired on June 4, 2012, the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired on July 19, 2012, the Hilton New Orleans St. Charles acquired on May 1, 2013, the Boston Park Plaza acquired on July 2, 2013, and the Hyatt Regency San Francisco acquired on December 2, 2013.
(5)	Non-Comparable Hotel represents the Boston Park Plaza acquired on July 2, 2013, due to the hotel’s addition of 12 rooms in September 2012 and 100 rooms in January 2013. Includes prior ownership results and the Company’s pro forma adjustments for depreciation and interest expense for both the three months ended March 31, 2013 and 2012. Prior ownership includes management fees reported at the prior owner’s expense of 4.0% of total revenues. Based on the Company’s current contract with the hotel’s third-party manager which assesses management fees at 2.5%, the hotel’s EBITDA would have been $(0.5) million and $0.1 million for the three months ended March 31, 2013 and 2012, respectively.
(6)	Comparable Portfolio represents the Company’s ownership results, prior ownership results and the Company’s pro forma adjustments for depreciation expense as applicable for the 28 Comparable Hotels, which include the Pro Forma Comparable 29 hotels held for investment as of December 31, 2013, excluding the Boston Park Plaza.
(7)	Prior Ownership for the three months ended March 31, 2013 includes prior ownership results and the Company’s pro forma depreciation expense for the Hilton New Orleans St. Charles acquired on May 1, 2013, and the Hyatt Regency San Francisco acquired on December 2, 2013. Prior ownership for the three months ended March 31, 2012 includes prior ownership results and the Company’s pro forma adjustments related to depreciation expense as applicable for the Hyatt Chicago Magnificent Mile acquired on June 4, 2012, the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired on July 19, 2012, the Hilton New Orleans St. Charles acquired on May 1, 2013, and the Hyatt Regency San Francisco acquired on December 2, 2013.
(8)	Actual Portfolio for the three months ended March 31, 2013 includes the Company’s ownership results for all 26 hotels held for investment by the Company as of March 31, 2013.
(9)	Other Adjustments for the three months ended March 31, 2012 include: a total of $1.0 million in amortization of lease intangibles at the Doubletree Guest Suites Times Square, Hilton Times Square and JW Marriott New Orleans; a total of $0.7 million in non-cash straightline lease expense at the Doubletree Guest Suites Times Square, Hilton San Diego Bayfront, Hilton Times Square and JW Marriott New Orleans; and $0.4 million in management transition costs at the Renaissance Westchester.
(10)	Actual Portfolio for the three months ended March 31, 2012 includes the Company’s ownership results for all 24 hotels held for investment by the Company as of March 31, 2012.

APPENDIX Page 51  

Supplemental Financial Information – Unaudited February 20, 2014  

Property-Level EBITDA Reconciliation

Q2 2013

	Hotels sorted by number of rooms	For the Three Months Ended June 30, 2013
							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)	$	30,614	$	4,923		$	450		$	3,609	$	2,369	$	11,351		37.1	%
2	Boston Park Plaza	22,199		5,233			-			1,849		1,328		8,410			37.9	%
3	Renaissance Washington DC	23,228		4,319			-			2,493		1,923		8,735			37.6	%
4	Hyatt Regency San Francisco	23,210		2,857			-			2,736		-		5,593			24.1	%
5	Renaissance Orlando at SeaWorld ®	13,949		1,094			-			1,830		1,112		4,036			28.9	%
6	Renaissance Harborplace	11,754		936			-			1,788		1,244		3,968			33.8	%
7	Renaissance Los Angeles Airport	6,161		454			-			753		-		1,207			19.6	%
8	JW Marriott New Orleans	8,397		1,335			1			1,333		344		3,013			35.9	%
9	Hilton North Houston	5,761		(264		)	-			906		509		1,151			20.0	%
10	Marriott Quincy (3)	7,654		1,821			-			1,139		-		2,960			38.7	%
11	Doubletree Guest Suites Times Square (1)	17,958		1,783			997			2,023		1,730		6,533			36.4	%
12	Hilton Times Square (3)	14,698		1,302			(78		)	2,507		1,236		4,967			33.8	%
13	Fairmont Newport Beach	6,901		232			-			1,244		-		1,476			21.4	%
14	Hyatt Chicago Magnificent Mile (3)	6,573		(799		)	-			1,523		-		724			11.0	%
15	Marriott Boston Long Wharf	13,416		941			-			2,097		2,486		5,524			41.2	%
16	Hyatt Regency Newport Beach (3)	7,819		698			-			774		-		1,472			18.8	%
17	Marriott Tysons Corner	5,484		550			-			794		586		1,930			35.2	%
18	Marriott Houston	4,145		173			-			563		301		1,037			25.0	%
19	Renaissance Long Beach	5,916		1,222			-			602		-		1,824			30.8	%
20	Embassy Suites Chicago (3)	7,760		1,318			-			914		1,022		3,254			41.9	%
21	Hilton Garden Inn Chicago Downtown/Magnificent Mile (3)	6,500		1,682			-			1,154		-		2,836			43.6	%
22	Renaissance Westchester (3)	4,671		7			-			575		-		582			12.5	%
23	Embassy Suites La Jolla	5,091		245			-			888		1,132		2,265			44.5	%
24	Marriott Philadelphia	5,345		968			-			466		356		1,790			33.5	%
25	Hilton New Orleans St. Charles	3,293		793			-			535		-		1,328			40.3	%
26	Marriott Portland	3,946		1,370			-			415		-		1,785			45.2	%
27	Sheraton Cerritos	3,159		459			-			411		-		870			27.5	%
28	Marriott Park City	1,320		(692		)	-			363		197		(132		)	-10.0	%
29	Courtyard by Marriott Los Angeles	2,783		605			-			309		-		914			32.8	%
	Pro Forma Comparable Portfolio (29 Hotels) (4)	279,705		35,565			1,370			36,593		17,875		91,403			32.7	%
	Less: Non-Comparable Hotel (5)
	Boston Park Plaza	22,199		5,233			-			1,849		1,328		8,410			37.9	%
	Comparable Portfolio (28 Hotels) (6)	257,506		30,332			1,370			34,744		16,547		82,993			32.2	%
	Less: Prior Ownership (7)
	Hilton New Orleans St. Charles	1,346		448			-			179		-		627			46.6	%
	Hyatt Regency San Francisco	23,210		2,857			-			2,736		-		5,593			24.1	%
	Actual Portfolio (27 Hotels) (8)	$	232,950	$	27,027		$	1,370		$	31,829	$	16,547	$	76,773		33.0	%
	*Footnotes on page 54.

APPENDIX Page 52

Supplemental Financial Information – Unaudited February 20, 2014

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
		Total		Net Income /			Other						Hotel			EBITDA
		Revenues		(Loss)			Adjustments (9)		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	Boston Park Plaza	21,123		4,896			-		1,849		1,328		8,073			38.2	%
3	Renaissance Washington DC	20,099		3,219			-		1,954		1,953		7,126			35.5	%
4	Hyatt Regency San Francisco	19,652		481			-		2,736		-		3,217			16.4	%
5	Renaissance Orlando at SeaWorld ®	13,740		1,256			-		1,938		1,140		4,334			31.5	%
6	Renaissance Harborplace	11,299		403			-		1,985		1,286		3,674			32.5	%
7	Renaissance Los Angeles Airport	5,668		383			-		702		-		1,085			19.1	%
8	JW Marriott New Orleans	8,767		823			1		1,804		763		3,391			38.7	%
9	Hilton North Houston	5,656		(226		)	-		953		476		1,203			21.3	%
10	Marriott Quincy	6,999		1,047			-		1,163		-		2,210			31.6	%
11	Doubletree Guest Suites Times Square (1)	17,438		1,533			1,000		1,969		2,097		6,599			37.8	%
12	Hilton Times Square	14,321		1,296			270		2,183		1,242		4,991			34.9	%
13	Fairmont Newport Beach	6,408		(103		)	-		1,349		-		1,246			19.4	%
14	Hyatt Chicago Magnificent Mile	7,132		112			143		1,950		-		2,205			30.9	%
15	Marriott Boston Long Wharf	12,167		401			-		2,053		2,486		4,940			40.6	%
16	Hyatt Regency Newport Beach	7,757		888			-		656		-		1,544			19.9	%
17	Marriott Tysons Corner	5,764		695			-		806		602		2,103			36.5	%
18	Marriott Houston	3,950		137			-		584		309		1,030			26.1	%
19	Renaissance Long Beach	5,207		837			-		606		138		1,581			30.4	%
20	Embassy Suites Chicago (3)	7,031		1,630			-		877		1,042		3,549			50.5	%
21	Hilton Garden Inn Chicago Downtown/Magnificent Mile	6,057		1,462			-		1,109		-		2,571			42.4	%
22	Renaissance Westchester	5,335		276			72		372		-		720			13.5	%
23	Embassy Suites La Jolla (3)	4,815		342			-		906		1,146		2,394			49.7	%
24	Marriott Philadelphia	4,679		408			-		479		366		1,253			26.8	%
25	Hilton New Orleans St. Charles	3,312		953			-		535		-		1,488			44.9	%
26	Marriott Portland	3,400		1,090			-		294		-		1,384			40.7	%
27	Sheraton Cerritos	2,962		296			-		421		-		717			24.2	%
28	Marriott Park City	1,554		(590		)	-		371		203		(16		)	-1.0	%
29	Courtyard by Marriott Los Angeles	2,764		630			-		309		-		939			34.0	%
	Pro Forma Comparable Portfolio (29 Hotels) (4)	265,916		25,825			1,936		38,596		19,067		85,424			32.1	%
	Less: Non-Comparable Hotel (5)
	Boston Park Plaza	21,123		4,896			-		1,849		1,328		8,073			38.2	%
	Comparable Portfolio (28 Hotels) (6)	244,793		20,929			1,936		36,747		17,739		77,351			31.6	%
	Less: Prior Ownership (7)
	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	%
	Hilton New Orleans St. Charles	3,312		953			-		535		-		1,488			44.9	%
	Hyatt Regency San Francisco	19,652		481			-		2,736		-		3,217			16.4	%
	Actual Portfolio (25 Hotels) (10)	$	211,297	$	18,235		$	1,936	$	31,004	$	17,739	$	68,914		32.6	%
	*Footnotes on page 54.

APPENDIX   Page 53    

Supplemental Financial Information – Unaudited February 20, 2014

Property-Level EBITDA Reconciliation

Q2 2013/2012 Footnotes

(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, 2013 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; and a total of $0.3 million in non-cash straightline lease expense at the Doubletree Guest Suites Times Square, Hilton San Diego Bayfront, Hilton Times Square and JW Marriott New Orleans.
(3)	Hotel EBITDA for the second quarter of 2013 is impacted by major room renovations at the following hotels: Hilton Times Square; Hyatt Chicago Magnificent Mile; Hyatt Regency Newport Beach; and Renaissance Westchester. Hotel EBITDA for the second quarter of 2013 is also impacted by a total of $(0.1) million in property tax (assessments) net of credits received at the following hotels: Embassy Suites Chicago $(168,000); Hilton Garden Inn Chicago Downtown/Magnificent Mile $(91,000); Hyatt Chicago Magnificent Mile $(223,000); and Marriott Quincy $376,000;   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).
(4)	Pro Forma Comparable Portfolio for the three months ended June 30, 2013 and 2012 includes all hotels held for investment by the Company as of December 31, 2013. Includes prior ownership results and the Company’s pro forma depreciation and interest expense as applicable for the Hyatt Chicago Magnificent Mile acquired on June 4, 2012, the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired on July 19, 2012, the Hilton New Orleans St. Charles acquired on May 1, 2013, the Boston Park Plaza acquired on July 2, 2013, and the Hyatt Regency San Francisco acquired on December 2, 2013.
(5)	Non-Comparable Hotel represents the Boston Park Plaza acquired on July 2, 2013, due to the hotel’s addition of 12 rooms in September 2012 and 100 rooms in January 2013. Includes prior ownership results and the Company’s pro forma adjustments for depreciation and interest expense for both the three months ended June 30, 2013 and 2012. Prior ownership includes management fees reported at the prior owner’s expense of 4.0% of total revenues. Based on the Company’s current contract with the hotel’s third-party manager which assesses management fees at 2.5%, the hotel’s EBITDA would have been $8.7 million and $8.4 million for the three months ended June 30, 2013 and 2012, respectively.
(6)	Comparable Portfolio represents the Company’s ownership results, prior ownership results and the Company’s pro forma adjustments for depreciation expense as applicable for the 28 Comparable Hotels, which include the Pro Forma Comparable 29 hotels held for investment as of December 31, 2013, excluding the Boston Park Plaza.
(7)	Prior Ownership for the three months ended June 30, 2013 includes prior ownership results and the Company’s pro forma depreciation expense for the Hilton New Orleans St. Charles acquired on May 1, 2013, and the Hyatt Regency San Francisco acquired on December 2, 2013. Prior ownership for the three months ended June 30, 2012 includes prior ownership results and the Company’s pro forma adjustments related to depreciation expense as applicable for the Hyatt Chicago Magnificent Mile acquired on June 4, 2012, the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired on July 19, 2012, the Hilton New Orleans St. Charles acquired on May 1, 2013, and the Hyatt Regency San Francisco acquired on December 2, 2013.
(8)	Actual Portfolio for the three months ended June 30, 2013 includes the Company’s ownership results for all 27 hotels held for investment by the Company as of June 30, 2013.
(9)	Other Adjustments for the three months ended June 30, 2012 include: a total of $1.0 million in amortization of lease intangibles at the Doubletree Guest Suites Times Square, Hilton Times Square and  JW Marriott New Orleans; a total of $0.7 million in non-cash straightline lease expense at the Doubletree Guest Suites Times Square, Hilton San Diego Bayfront, Hilton Times Square and JW Marriott New Orleans; $0.1 million in management transition costs at the Renaissance Westchester; and $0.1 million in management transition costs at the Hyatt Chicago Magnificent Mile.
(10)	Actual Portfolio for the three months ended June 30, 2012 includes the Company’s ownership results for all 25 hotels held for investment by the Company as of June 30, 2012.

APPENDIX Page 54  

Supplemental Financial Information – Unaudited February 20, 2014

Property-Level EBITDA Reconciliation

Q3 2013

	Hotels sorted by number of rooms	For the Three Months Ended September 30, 2013
							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)	$	33,846	$	7,068		$	450	$	3,244	$	2,360	$	13,122	38.8	%
2	Boston Park Plaza	19,938		2,543			-		2,833		1,338		6,714		33.7	%
3	Renaissance Washington DC	16,353		(825		)	-		2,422		1,915		3,512		21.5	%
4	Hyatt Regency San Francisco	22,627		2,327			-		2,736		-		5,063		22.4	%
5	Renaissance Orlando at SeaWorld ®	11,444		(1,267		)	-		1,776		1,117		1,626		14.2	%
6	Renaissance Harborplace	11,591		704			-		1,756		1,247		3,707		32.0	%
7	Renaissance Los Angeles Airport	6,414		620			-		765		-		1,385		21.6	%
8	JW Marriott New Orleans	6,757		(293		)	1		1,347		503		1,558		23.1	%
9	Hilton North Houston	5,079		(756		)	-		952		472		668		13.2	%
10	Marriott Quincy	7,659		1,170			-		1,140		-		2,310		30.2	%
11	Doubletree Guest Suites Times Square (1)	18,125		1,727			998		2,031		1,827		6,583		36.3	%
12	Hilton Times Square	13,888		313			92		2,535		1,245		4,185		30.1	%
13	Fairmont Newport Beach	7,375		521			-		1,206		-		1,727		23.4	%
14	Hyatt Chicago Magnificent Mile	8,480		690			-		1,565		-		2,255		26.6	%
15	Marriott Boston Long Wharf	14,866		1,808			-		2,093		2,514		6,415		43.2	%
16	Hyatt Regency Newport Beach	9,413		1,363			-		865		-		2,228		23.7	%
17	Marriott Tysons Corner	4,547		(120		)	-		808		588		1,276		28.1	%
18	Marriott Houston	3,613		(191		)	-		576		302		687		19.0	%
19	Renaissance Long Beach	5,401		740			-		587		-		1,327		24.6	%
20	Embassy Suites Chicago	8,003		1,659			-		927		1,028		3,614		45.2	%
21	Hilton Garden Inn Chicago Downtown/Magnificent Mile	6,088		1,424			-		1,157		-		2,581		42.4	%
22	Renaissance Westchester	4,561		(429		)	-		705		-		276		6.1	%
23	Embassy Suites La Jolla	5,949		736			-		888		1,129		2,753		46.3	%
24	Marriott Philadelphia	4,268		261			-		473		357		1,091		25.6	%
25	Hilton New Orleans St. Charles	2,331		94			-		542		-		636		27.3	%
26	Marriott Portland	4,741		1,920			-		424		-		2,344		49.4	%
27	Sheraton Cerritos	2,992		286			-		405		-		691		23.1	%
28	Marriott Park City	1,963		(308		)	-		362		198		252		12.8	%
29	Courtyard by Marriott Los Angeles	2,902		799			-		308		-		1,107		38.1	%
	Pro Forma Comparable Portfolio (29 Hotels) (3)	271,214		24,584			1,541		37,428		18,140		81,693		30.1	%
	Less: Non-Comparable Hotel (4)
	Boston Park Plaza	19,938		2,543			-		2,833		1,338		6,714		33.7	%
	Comparable Portfolio (28 Hotels) (5)	251,276		22,041			1,541		34,595		16,802		74,979		29.8	%
	Less: Prior Ownership (6)
	Hyatt Regency San Francisco	22,627		2,327			-		2,736		-		5,063		22.4	%
	Plus: Non-Comparable Hotel Company Results (7)
	Boston Park Plaza	19,938		2,543			-		2,833		1,338		6,714		33.7	%
	Actual Portfolio (28 Hotels) (8)	$	248,587	$	22,257		$	1,541	$	34,692	$	18,140	$	76,630	30.8	%

*Footnotes on page 57.

APPENDIX   Page 55  

Supplemental Financial Information – Unaudited February 20, 2014

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 (9)		Depreciation		Interest Expense		EBITDA		Margins
1	Hilton San Diego Bayfront (1) (10)	$	30,735	$	3,305		$	450	$	5,688	$	2,487	$	11,930	38.8%
2	Boston Park Plaza	17,728		2,178			-		1,849		1,337		5,364		30.3%
3	Renaissance Washington DC	10,717		(3,110		)	-		1,992		1,945		827		7.7%
4	Hyatt Regency San Francisco	20,222		998			-		2,736		-		3,734		18.5%
5	Renaissance Orlando at SeaWorld ®	11,320		(1,084		)	-		1,869		1,145		1,930		17.0%
6	Renaissance Harborplace (10)	9,785		(186		)	-		1,893		1,289		2,996		30.6%
7	Renaissance Los Angeles Airport	5,636		166			-		726		-		892		15.8%
8	JW Marriott New Orleans	5,825		(1,846		)	1		1,821		626		602		10.3%
9	Hilton North Houston	5,469		(514		)	-		962		480		928		17.0%
10	Marriott Quincy	6,559		724			-		1,136		-		1,860		28.4%
11	Doubletree Guest Suites Times Square (1)	17,134		641			1,425		1,995		1,936		5,997		35.0%
12	Hilton Times Square	13,480		67			270		2,324		1,253		3,914		29.0%
13	Fairmont Newport Beach	7,148		235			-		1,292		-		1,527		21.4%
14	Hyatt Chicago Magnificent Mile	7,593		(663		)	32		2,559		-		1,928		25.4%
15	Marriott Boston Long Wharf	13,043		820			-		2,085		2,514		5,419		41.5%
16	Hyatt Regency Newport Beach	8,774		1,309			-		637		-		1,946		22.2%
17	Marriott Tysons Corner	4,633		(23		)	-		807		605		1,389		30.0%
18	Marriott Houston	3,713		(227		)	-		606		310		689		18.6%
19	Renaissance Long Beach	4,308		239			-		584		-		823		19.1%
20	Embassy Suites Chicago	7,165		1,178			-		872		1,049		3,099		43.3%
21	Hilton Garden Inn Chicago Downtown/Magnificent Mile	5,934		1,503			-		1,121		-		2,624		44.2%
22	Renaissance Westchester	4,563		(64		)	-		359		-		295		6.5%
23	Embassy Suites La Jolla	5,462		408			-		908		1,143		2,459		45.0%
24	Marriott Philadelphia	3,753		(191		)	-		483		368		660		17.6%
25	Hilton New Orleans St. Charles	2,411		177			-		535		-		712		29.5%
26	Marriott Portland	4,137		1,660			-		290		-		1,950		47.1%
27	Sheraton Cerritos	2,748		226			-		406		-		632		23.0%
28	Marriott Park City	1,897		(326		)	-		355		204		233		12.3%
29	Courtyard by Marriott Los Angeles	2,830		654			-		310		-		964		34.1%
	Pro Forma Comparable Portfolio (29 Hotels) (3)	244,722		8,254			2,178		39,200		18,691		68,323		27.9%
	Less: Non-Comparable Hotel (4)
	Boston Park Plaza	17,728		2,178			-		1,849		1,337		5,364		30.3%
	Comparable Portfolio (28 Hotels) (5)	226,994		6,076			2,178		37,351		17,354		62,959		27.7%
	Less: Prior Ownership (6)
	Hilton Garden Inn Chicago Downtown/Magnificent Mile	913		367			-		-		-		367		40.2%
	Hilton New Orleans St. Charles	2,411		177			-		535		-		712		29.5%
	Hyatt Regency San Francisco	20,222		998			-		2,736		-		3,734		18.5%
	Actual Portfolio (26 Hotels) (11)	$	203,448	$	4,534		$	2,178	$	34,080	$	17,354	$	58,146	28.6%

*Footnotes on page 57.

APPENDIX Page 56  

Supplemental Financial Information – Unaudited February 20, 2014

Property-Level EBITDA Reconciliation

Q3 2013/2012 Footnotes

(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, 2013 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 $0.5 million in non-cash straightline lease expense at the Doubletree Guest Suites Times Square, Hilton San Diego Bayfront, Hilton Times Square and JW Marriott New Orleans.
(3)	Pro Forma Comparable Portfolio for the three months ended September 30, 2013 and 2012 includes all hotels held for investment by the Company as of December 31, 2013. Includes prior ownership results and the Company’s pro forma depreciation and interest expense as applicable for the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired on July 19, 2012, the Hilton New Orleans St. Charles acquired on May 1, 2013, the Boston Park Plaza acquired on July 2, 2013, and the Hyatt Regency San Francisco acquired on December 2, 2013.
(4)	Non-Comparable Hotel represents the Boston Park Plaza acquired on July 2, 2013, due to the hotel’s addition of 12 rooms in September 2012 and 100 rooms in January 2013. Includes prior ownership results and the Company’s pro forma adjustments for depreciation and interest expense for the three months ended September 30, 2012. Prior ownership includes management fees reported at the prior owner’s expense of 4.0% of total revenues. Based on the Company’s current contract with the hotel’s third-party manager which assesses management fees at 2.5%, the hotel’s EBITDA would have been $5.6 million for the three months ended September 30, 2012.
(5)	Comparable Portfolio represents the Company’s ownership results, prior ownership results and the Company’s pro forma adjustments for depreciation expense as applicable for the 28 Comparable Hotels, which include the Pro Forma Comparable 29 hotels held for investment as of December 31, 2013, excluding the Boston Park Plaza.
(6)	Prior Ownership for the three months ended September 30, 2013 includes prior ownership results and the Company’s pro forma depreciation expense for the Hyatt Regency San Francisco acquired on December 2, 2013. Prior ownership for the three months ended September 30, 2012 includes prior ownership results and the Company’s pro forma adjustments related to depreciation expense as applicable for the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired on July 19, 2012, the Hilton New Orleans St. Charles acquired on May 1, 2013, and the Hyatt Regency San Francisco acquired on December 2, 2013.
(7)	Non-Comparable Hotel Company Results represent the Company’s ownership results for the Boston Park Plaza acquired on July 2, 2013, added back in order to arrive at the total actual results reported by the Company for the three months ended September 30, 2013.
(8)	Actual Portfolio for the three months ended September 30, 2013 includes the Company’s ownership results for all 28 hotels held for investment by the Company as of September 30, 2013.
(9)	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.
(10)	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.
(11)	Actual Portfolio for the three months ended September 30, 2012 includes the Company’s ownership results for all 26 hotels held for investment by the Company as of September 30, 2012.

APPENDIX Page 57  

Supplemental Financial Information – Unaudited February 20, 2014

Property-Level EBITDA Reconciliation

Q4 2013

	Hotels sorted by number of rooms	For the Three Months Ended December 31, 2013
							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)	$	28,587	$	2,880		$	451		$	3,231	$	2,327	$	8,889	31.1%
2	Boston Park Plaza	17,582		(67		)	-			2,854		1,347		4,134		23.5%
3	Renaissance Washington DC (4)	18,668		633			-			2,413		1,908		4,954		26.5%
4	Hyatt Regency San Francisco	22,671		1,346			-			2,736		-		4,082		18.0%
5	Renaissance Orlando at SeaWorld ® (4)	11,152		(891		)	-			1,882		1,108		2,099		18.8%
6	Renaissance Harborplace (4)	9,927		(432		)	-			1,753		1,236		2,557		25.8%
7	Renaissance Los Angeles Airport (4)	6,181		533			-			770		-		1,303		21.1%
8	JW Marriott New Orleans (4)	9,452		2,054			(4		)	1,323		439		3,812		40.3%
9	Hilton North Houston	5,489		(138		)	-			918		471		1,251		22.8%
10	Marriott Quincy (4)	7,213		849			-			1,148		-		1,997		27.7%
11	Doubletree Guest Suites Times Square (1)	20,108		3,284			997			2,072		1,816		8,169		40.6%
12	Hilton Times Square	16,180		1,868			91			2,547		1,246		5,752		35.6%
13	Fairmont Newport Beach	5,806		(359		)	-			1,163		-		804		13.8%
14	Hyatt Chicago Magnificent Mile	7,407		(142		)	-			1,596		-		1,454		19.6%
15	Marriott Boston Long Wharf (4)	12,643		(194		)	-			2,119		2,513		4,438		35.1%
16	Hyatt Regency Newport Beach	6,897		79			-			868		-		947		13.7%
17	Marriott Tysons Corner (4)	5,011		26			-			820		583		1,429		28.5%
18	Marriott Houston	3,999		399			-			568		299		1,266		31.7%
19	Renaissance Long Beach (4)	4,726		296			-			589		-		885		18.7%
20	Embassy Suites Chicago	6,620		503			-			929		1,022		2,454		37.1%
21	Hilton Garden Inn Chicago Downtown/Magnificent Mile	4,614		200			-			1,164		-		1,364		29.6%
22	Renaissance Westchester	5,294		143			-			753		-		896		16.9%
23	Embassy Suites La Jolla	4,440		(353		)	-			895		1,125		1,667		37.5%
24	Marriott Philadelphia (4)	4,257		185			-			479		355		1,019		23.9%
25	Hilton New Orleans St. Charles (3)	3,524		637			-			544		-		1,181		33.5%
26	Marriott Portland	3,537		1,062			-			420		-		1,482		41.9%
27	Sheraton Cerritos	3,111		427			-			409		-		836		26.9%
28	Marriott Park City	1,497		(552		)	-			402		196		46		3.1%
29	Courtyard by Marriott Los Angeles	2,633		535			-			308		-		843		32.0%
	Pro Forma Comparable Portfolio (29 Hotels) (5)	259,226		14,811			1,535			37,673		17,991		72,010		27.8%
	Less: Non-Comparable Hotel (6)
	Boston Park Plaza	17,582		(67		)	-			2,854		1,347		4,134		23.5%
	Comparable Portfolio (28 Hotels) (7)	241,644		14,878			1,535			34,819		16,644		67,876		28.1%
	Less: Prior Ownership Results (8)
	Hyatt Regency San Francisco	16,992		2,041			-			1,824		-		3,865		22.7%
	Plus: Non-Comparable Hotel Company Results (9)
	Boston Park Plaza	17,582		(67		)	-			2,854		1,347		4,134		23.5%
	Actual Portfolio (29 Hotels) (10)	$	242,234	$	12,770		$	1,535		$	35,849	$	17,991	$	68,145	28.1%

*Footnotes on page 60.

APPENDIX Page 58

Supplemental Financial Information – Unaudited February 20, 2014

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 (11)		Depreciation		Interest Expense		EBITDA		Margins
1	Hilton San Diego Bayfront (1)	$	27,923	$	261		$	451	$	5,697	$	2,422	$	8,831	31.6%
2	Boston Park Plaza	16,074		532			-		1,849		1,333		3,714		23.1%
3	Renaissance Washington DC	20,635		1,247			-		2,388		1,938		5,573		27.0%
4	Hyatt Regency San Francisco	20,403		734			-		2,736		-		3,470		17.0%
5	Renaissance Orlando at SeaWorld ®	14,282		(208		)	-		1,857		1,138		2,787		19.5%
6	Renaissance Harborplace	12,845		669			-		1,862		1,279		3,810		29.7%
7	Renaissance Los Angeles Airport	7,051		515			-		732		-		1,247		17.7%
8	JW Marriott New Orleans	9,901		969			2		1,865		422		3,258		32.9%
9	Hilton North Houston	5,325		(369		)	-		940		478		1,049		19.7%
10	Marriott Quincy	8,829		1,771			-		1,138		-		2,909		32.9%
11	Doubletree Guest Suites Times Square (1)	21,658		4,920			1,001		2,019		1,797		9,737		45.0%
12	Hilton Times Square	16,569		2,544			269		2,206		1,270		6,289		38.0%
13	Fairmont Newport Beach	6,217		(281		)	-		1,289		-		1,008		16.2%
14	Hyatt Chicago Magnificent Mile	7,250		(654		)	-		2,149		-		1,495		20.6%
15	Marriott Boston Long Wharf	13,908		270			-		2,092		2,514		4,876		35.1%
16	Hyatt Regency Newport Beach	5,488		(374		)	-		629		-		255		4.6%
17	Marriott Tysons Corner	6,774		971			-		796		601		2,368		35.0%
18	Marriott Houston	3,436		(164		)	-		588		308		732		21.3%
19	Renaissance Long Beach	5,816		406			199		591		-		1,196		20.6%
20	Embassy Suites Chicago	6,467		1,260			-		863		1,044		3,167		49.0%
21	Hilton Garden Inn Chicago Downtown/Magnificent Mile	5,184		945			-		1,152		-		2,097		40.5%
22	Renaissance Westchester	5,040		188			-		393		-		581		11.5%
23	Embassy Suites La Jolla	4,305		(251		)	-		908		1,139		1,796		41.7%
24	Marriott Philadelphia	5,988		727			-		485		364		1,576		26.3%
25	Hilton New Orleans St. Charles	3,002		328			-		536		-		864		28.8%
26	Marriott Portland	3,221		996			-		289		-		1,285		39.9%
27	Sheraton Cerritos	3,016		440			-		412		-		852		28.2%
28	Marriott Park City	1,756		(374		)	-		363		202		191		10.9%
29	Courtyard by Marriott Los Angeles (3)	2,610		812			-		307		-		1,119		42.9%
	Pro Forma Comparable Portfolio (29 Hotels) (5)	270,973		18,830			1,922		39,131		18,249		78,132		28.8%
	Less: Non-Comparable Hotel (6)
	Boston Park Plaza	16,074		532			-		1,849		1,333		3,714		23.1%
	Comparable Portfolio (28 Hotels) (7)	254,899		18,298			1,922		37,282		16,916		74,418		29.2%
	Less: Prior Ownership (8)
	Hilton New Orleans St. Charles	3,002		328			-		536		-		864		28.8%
	Hyatt Regency San Francisco	20,403		734			-		2,736		-		3,470		17.0%
	Actual Portfolio (26 Hotels) (12)	$	231,494	$	17,236		$	1,922	$	34,010	$	16,916	$	70,084	30.3%

*Footnotes on page 60.

APPENDIX Page 59  

Supplemental Financial Information – Unaudited February 20, 2014

Property-Level EBITDA Reconciliation
Q4 2013/2012 Footnotes

(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, 2013 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 $0.5 million in non-cash straightline lease expense at the Doubletree Guest Suites Times Square, Hilton San Diego Bayfront, Hilton Times Square and JW Marriott New Orleans.
(3)	Hotel EBITDA for the fourth quarter of 2013 is impacted by an additional expense of $0.3 million related to fees incurred for a successful real estate tax appeal at the Hilton New Orleans St. Charles, the benefit of which will not be recorded until 2014.  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 at the Company’s 10 Marriott-managed hotels is impacted by Marriott’s conversion in 2013 from a 13-period fiscal calendar to a standard 12-month calendar, which caused there to be 20 less days in the fourth quarter of 2013 as compared to the fourth quarter of 2012.
(5)	Pro Forma Comparable Portfolio for the three months ended December 31, 2013 and 2012 includes all hotels held for investment by the Company as of December 31, 2013. Includes prior ownership results and the Company’s pro forma depreciation and interest expense as applicable for the Hilton New Orleans St. Charles acquired on May 1, 2013, the Boston Park Plaza acquired on July 2, 2013, and the Hyatt Regency San Francisco acquired on December 2, 2013.
(6)	Non-Comparable Hotel represents the Boston Park Plaza acquired on July 2, 2013, due to the hotel’s addition of 12 rooms in September 2012 and 100 rooms in January 2013. Includes prior ownership results and the Company’s pro forma adjustments for depreciation and interest expense for the three months ended December 31, 2012. Prior ownership includes management fees reported at the prior owner’s expense of 4.0% of total revenues. Based on the Company’s current contract with the hotel’s third-party manager which assesses management fees at 2.5%, the hotel’s EBITDA would have been $4.0 million for the three months ended December 31, 2012.
(7)	Comparable Portfolio represents the Company’s ownership results, prior ownership results and the Company’s pro forma adjustments for depreciation expense as applicable for the 28 Comparable Hotels, which include the Pro Forma Comparable 29 hotels held for investment as of December 31, 2013, excluding the Boston Park Plaza.
(8)	Prior Ownership for the three months ended December 31, 2013 includes prior ownership results and the Company’s pro forma depreciation expense for the Hyatt Regency San Francisco acquired on December 2, 2013. Prior ownership for the three months ended December 31, 2012 includes prior ownership results and the Company’s pro forma adjustments related to depreciation expense as applicable for the Hilton New Orleans St. Charles acquired on May 1, 2013, and the Hyatt Regency San Francisco acquired on December 2, 2013.
(9)	Non-Comparable Hotel Company Results represent the Company’s ownership results for the Boston Park Plaza acquired on July 2, 2013, added back in order to arrive at the total actual results reported by the Company for the three months ended December 31, 2013.
(10)	Actual Portfolio for the three months ended December 31, 2013 includes the Company’s ownership results for all 29 hotels held for investment by the Company as of December 31, 2013.
(11)	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.
(12)	Actual Portfolio for the three months ended December 31, 2012 includes the Company’s ownership results for all 26 hotels held for investment by the Company as of December 31, 2012.

APPENDIX Page 60  

Supplemental Financial Information – Unaudited February 20, 2014

Property-Level EBITDA Reconciliation

FY 2013

	Hotels sorted by number of rooms	For the Year Ended December 31, 2013
							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)	$	122,115	$	16,066		$	1,801		$	15,826	$	9,363	$	43,056	35.3%
2	Boston Park Plaza	70,497		3,919			-			9,385		5,332		18,636		26.4%
3	Renaissance Washington DC	77,793		5,380			-			9,799		7,676		22,855		29.4%
4	Hyatt Regency San Francisco	87,056		5,926			-			10,944		-		16,870		19.4%
5	Renaissance Orlando at SeaWorld ®	53,808		1,819			-			7,336		4,444		13,599		25.3%
6	Renaissance Harborplace	41,524		(718		)	-			7,085		4,968		11,335		27.3%
7	Renaissance Los Angeles Airport	25,090		2,122			-			3,037		-		5,159		20.6%
8	JW Marriott New Orleans	35,361		5,597			(1		)	5,604		1,702		12,902		36.5%
9	Hilton North Houston	22,261		(1,290		)	-			3,708		1,928		4,346		19.5%
10	Marriott Quincy (3)	28,045		3,551			-			4,568		-		8,119		28.9%
11	Doubletree Guest Suites Times Square (1)	69,297		4,215			3,992			8,414		7,130		23,751		34.3%
12	Hilton Times Square (3)	52,509		(384		)	375			9,859		4,957		14,807		28.2%
13	Fairmont Newport Beach	26,384		207			-			4,887		-		5,094		19.3%
14	Hyatt Chicago Magnificent Mile (3)	25,196		(3,678		)	-			6,212		-		2,534		10.1%
15	Marriott Boston Long Wharf	50,816		409			-			8,405		9,972		18,786		37.0%
16	Hyatt Regency Newport Beach (3)	28,853		1,273			-			3,129		-		4,402		15.3%
17	Marriott Tysons Corner	19,788		236			-			3,366		2,341		5,943		30.0%
18	Marriott Houston	15,738		383			-			2,282		1,201		3,866		24.6%
19	Renaissance Long Beach	21,758		3,251			-			2,379		-		5,630		25.9%
20	Embassy Suites Chicago (3)	26,486		2,396			-			3,625		4,088		10,109		38.2%
21	Hilton Garden Inn Chicago Downtown/Magnificent Mile (3)	20,474		2,623			-			4,627		-		7,250		35.4%
22	Renaissance Westchester (3)	17,296		(1,661		)	-			2,437		-		776		4.5%
23	Embassy Suites La Jolla	20,199		447			-			3,578		4,522		8,547		42.3%
24	Marriott Philadelphia	18,012		1,306			-			1,886		1,423		4,615		25.6%
25	Hilton New Orleans St. Charles (3)	12,827		2,424			-			2,156		-		4,580		35.7%
26	Marriott Portland	14,867		4,886			-			1,585		-		6,471		43.5%
27	Sheraton Cerritos	12,473		1,644			-			1,641		-		3,285		26.3%
28	Marriott Park City	9,087		(270		)	-			1,495		788		2,013		22.2%
29	Courtyard by Marriott Los Angeles	10,973		2,489			-			1,233		-		3,722		33.9%
	Pro Forma Comparable Portfolio (29 Hotels) (4)	1,036,583		64,568			6,167			150,488		71,835		293,058		28.3%
	Less: Non-Comparable Hotel (5)
	Boston Park Plaza	70,497		3,919			-			9,385		5,332		18,636		26.4%
	Comparable Portfolio (28 Hotels) (6)	966,086		60,649			6,167			141,103		66,503		274,422		28.4%
	Less: Prior Ownership (7)
	Hilton New Orleans St. Charles	5,025		1,348			-			714		-		2,062		41.0%
	Hyatt Regency San Francisco	81,377		6,621			-			10,032		-		16,653		20.5%
	Plus: Non-Comparable Hotel Company Results (8)
	Boston Park Plaza	37,520		2,476			-			5,687		2,685		10,848		28.9%
	Actual Portfolio (29 Hotels) (9)	$	917,204	$	55,156		$	6,167		$	136,044	$	69,188	$	266,555	29.1%

*Footnotes on page 63.

APPENDIX Page 61

Supplemental Financial Information – Unaudited February 20, 2014

Property-Level EBITDA Reconciliation

FY 2012

	Hotels sorted by number of rooms	For the Year Ended December 31, 2012
							Plus:		Plus:		Plus:		Equals:		Hotel
		Total		Net Income /			Other						Hotel		EBITDA
		Revenues		(Loss)			Adjustments (10)		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	Boston Park Plaza	66,134		4,364			-		7,396		5,317		17,077		25.8%
3	Renaissance Washington DC	65,152		(18		)	-		8,260		7,796		16,038		24.6%
4	Hyatt Regency San Francisco	78,416		1,667			-		10,944		-		12,611		16.1%
5	Renaissance Orlando at SeaWorld ®	54,992		2,418			-		7,633		4,569		14,620		26.6%
6	Renaissance Harborplace (3)	40,976		(1,702		)	-		7,768		5,150		11,216		27.4%
7	Renaissance Los Angeles Airport	24,032		1,442			-		2,848		-		4,290		17.9%
8	JW Marriott New Orleans	32,805		482			5		7,288		2,396		10,171		31.0%
9	Hilton North Houston (3)	22,369		(965		)	-		3,800		1,912		4,747		21.2%
10	Marriott Quincy	27,217		3,003			-		4,665		-		7,668		28.2%
11	Doubletree Guest Suites Times Square (1)	68,179		3,926			4,429		7,966		7,786		24,107		35.4%
12	Hilton Times Square	54,624		1,534			1,079		8,870		5,008		16,491		30.2%
13	Fairmont Newport Beach	25,775		(589		)	-		5,283		-		4,694		18.2%
14	Hyatt Chicago Magnificent Mile	25,788		(3,798		)	175		8,608		-		4,985		19.3%
15	Marriott Boston Long Wharf	47,289		(1,582		)	-		8,383		10,000		16,801		35.5%
16	Hyatt Regency Newport Beach	28,638		2,065			-		2,578		-		4,643		16.2%
17	Marriott Tysons Corner	21,879		1,597			-		3,221		2,414		7,232		33.1%
18	Marriott Houston (3)	15,049		(154		)	-		2,346		1,238		3,430		22.8%
19	Renaissance Long Beach	20,055		1,621			199		2,398		549		4,767		23.8%
20	Embassy Suites Chicago (3)	24,369		2,642			-		3,491		4,182		10,315		42.3%
21	Hilton Garden Inn Chicago Downtown/Magnificent Mile	20,316		3,216			-		4,491		-		7,707		37.9%
22	Renaissance Westchester	18,940		(496		)	466		1,510		-		1,480		7.8%
23	Embassy Suites La Jolla (3)	19,030		275			-		3,625		4,577		8,477		44.5%
24	Marriott Philadelphia	18,367		736			-		1,922		1,467		4,125		22.5%
25	Hilton New Orleans St. Charles	12,267		2,484			-		2,141		-		4,625		37.7%
26	Marriott Portland	13,533		4,392			-		1,167		-		5,559		41.1%
27	Sheraton Cerritos	11,659		1,223			-		1,666		-		2,889		24.8%
28	Marriott Park City	9,493		(2		)	-		1,439		813		2,250		23.7%
29	Courtyard by Marriott Los Angeles (3)	10,825		2,619			-		1,232		-		3,851		35.6%
	Pro Forma Comparable Portfolio (29 Hotels) (4)	998,306		39,458			8,154		155,681		75,083		278,376		27.9%
	Less: Non-Comparable Hotel (5)
	Boston Park Plaza	66,134		4,364			-		7,396		5,317		17,077		25.8%
	Comparable Portfolio (28 Hotels) (6)	932,172		35,094			8,154		148,285		69,766		261,299		28.0%
	Less: Prior Ownership (7)
	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%
	Hilton New Orleans St. Charles	12,267		2,484			-		2,141		-		4,625		37.7%
	Hyatt Regency San Francisco	78,416		1,667			-		10,944		-		12,611		16.1%
	Actual Portfolio (26 Hotels) (11)	$	823,090	$	32,603		$	8,154	$	129,669	$	69,766	$	240,192	29.2%

*Footnotes on page 63.

APPENDIX Page 62  

Supplemental Financial Information – Unaudited February 20, 2014

Property-Level EBITDA Reconciliation

FY 2013/2012 Footnotes

(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, 2013 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; and a total of $2.1 million in non-cash straightline lease expense at the Doubletree Guest Suites Times Square, Hilton San Diego Bayfront, Hilton Times Square and JW Marriott New Orleans.
(3)	Hotel EBITDA for 2013 is impacted by major room renovations during the first half of the year at the following hotels: Hilton Times Square; Hyatt Chicago Magnificent Mile; Hyatt Regency Newport Beach; and Renaissance Westchester. Hotel EBITDA for 2013 is also impacted by: (1) additional expense of $0.3 million related to fees incurred for a successful real estate tax appeal at the Hilton New Orleans St. Charles, the benefit of which will not be recorded until 2014; and (2) a total of $(0.1) million in prior year property tax (assessments) net of credits received at the following hotels: Embassy Suites Chicago $(168,000); Hilton Garden Inn Chicago Downtown/Magnificent Mile $(91,000); Hyatt Chicago Magnificent Mile $(223,000); and Marriott Quincy $376,000. Hotel EBITDA for 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.
(4)	Pro Forma Comparable Portfolio for the years ended December 31, 2013 and 2012 includes all 29 hotels held for investment by the Company as of December 31, 2013. Includes the Company’s ownership results, prior ownership results and the Company’s pro forma depreciation and interest expense as applicable for the Hyatt Chicago Magnificent Mile acquired on June 4, 2012, the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired on July 19, 2012, the Hilton New Orleans St. Charles acquired on May 1, 2013, the Boston Park Plaza acquired on July 2, 2013, and the Hyatt Regency San Francisco acquired on December 2, 2013.
(5)	Non-Comparable Hotel represents the Boston Park Plaza acquired on July 2, 2013, due to the hotel’s addition of 12 rooms in September 2012 and 100 rooms in January 2013. Includes prior ownership results and the Company’s pro forma adjustments for depreciation and interest expense for both the years ended December 31, 2013 and 2012. Prior ownership includes management fees reported at the prior owner’s expense of 4.0% of total revenues. Based on the Company’s current contract with the hotel’s third-party manager which assesses management fees at 2.5%, the hotel’s EBITDA would have been $19.1 million and $18.1 million for the years ended December 31, 2013 and 2012, respectively.
(6)	Comparable Portfolio represents the Company’s ownership results, prior ownership results and the Company’s pro forma adjustments for depreciation expense as applicable for the 28 Comparable Hotels, which include the Pro Forma Comparable 29 hotels held for investment as of December 31, 2013, excluding the Boston Park Plaza.
(7)	Prior Ownership for the year ended December 31, 2013 includes prior ownership results and the Company’s pro forma depreciation expense for the Hilton New Orleans St. Charles acquired on May 1, 2013, and the Hyatt Regency San Francisco acquired on December 2, 2013. Prior ownership for the year ended December 31, 2012 includes prior ownership results and the Company’s pro forma adjustments related to depreciation expense as applicable for the Hyatt Chicago Magnificent Mile acquired on June 4, 2012, the Hilton Garden Inn Chicago Downtown/Magnificent Mile acquired on July 19, 2012, the Hilton New Orleans St. Charles acquired on May 1, 2013, and the Hyatt Regency San Francisco acquired on December 2, 2013.
(8)	Non-Comparable Hotel Company Results represent the Company’s ownership results for the Boston Park Plaza acquired on July 2, 2013, added back in order to arrive at the total actual results reported by the Company for the year ended December 31, 2013.
(9)	Actual Portfolio for the year ended December 31, 2013 includes the Company’s ownership results for all 29 hotels held for investment by the Company as of December 31, 2013.
(10)	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.
(11)	Actual Portfolio for the year ended December 31, 2012 includes the Company’s ownership results for all 26 hotels held for investment by the Company as of December 31, 2012.

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Supplemental Financial Information – Unaudited February 20, 2014

2013 Marriott Accounting Conversion

Beginning in 2013, Marriott switched from a 13-period accounting calendar 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.

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