Sunstone Hotel Investors (SHO) 8-K Sunstone Hotel Investors Reports Results for Second Quarter 2014

Exhibit 99.2

Supplemental Financial Information For the quarter ended June 30, 2014 August 7, 2014

Supplemental Financial Information – Unaudited August 7, 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 Q2 2014 – Q2 2013	10
Consolidated Statements of Operations Q2 & YTD 2014/2013	12
Reconciliation of Net Income to EBITDA and Adjusted EBITDA Q2 & YTD 2014/2013	13
Reconciliation of Net Income to FFO and Adjusted FFO Available to Common Stockholders Q2 & YTD 2014/2013	14
Pro Forma Consolidated Statements of Operations Q2 2014 – Q1 2013	15
Reconciliation of Pro Forma Net Income (Loss) to EBITDA and Adjusted EBITDA Q1 2014	16
Reconciliation of Pro Forma Net Income (Loss) to FFO and Adjusted FFO Available to Common Stockholders Q1 2014	17
Reconciliation of Pro Forma Net Income to EBITDA and Adjusted EBITDA Q2 2014	18
Reconciliation of Pro Forma Net Income to FFO and Adjusted FFO Available to Common Stockholders Q2 2014	19
Reconciliation of Pro Forma Net Income to EBITDA and Adjusted EBITDA Q2 YTD 2014	20
Reconciliation of Pro Forma Net Income to FFO and Adjusted FFO Available to Common Stockholders Q2 YTD 2014	21
Reconciliation of Pro Forma Net Income to EBITDA and Adjusted EBITDA FY 2013	22
Reconciliation of Pro Forma Net Income to FFO and Adjusted FFO Available to Common Stockholders FY 2013	23
EARNINGS GUIDANCE	24
Earnings Guidance for Q3 and FY 2014	25

Supplemental Financial Information – Unaudited August 7, 2014  

Reconciliation of Net Income to Adjusted EBITDA and Adjusted FFO Available to Common Stockholders Q3 and FY 2014	27
CAPITALIZATION	28
Comparative Capitalization Q2 2014 – Q2 2013	29
Consolidated Debt Summary Schedule	30
Consolidated Amortization and Debt Maturity Schedule	31
PROPERTY-LEVEL DATA	32
PROPERTY-LEVEL OPERATING STATISTICS	34
Q2 2014/2013	35
YTD 2014/2013	36
OPERATING STATISTICS BY BRAND & GEOGRAPHY	37
Operating Statistics by Brand Q2 & YTD 2014/2013	38
Pro Forma Comparable Portfolio Property-Level Trailing 12 Month EBITDA Contribution by Brand	39
Operating Statistics by Region Q2 & YTD 2014/2013	40
PROPERTY-LEVEL EBITDA & EBITDA MARGINS	41
Property-Level EBITDA Q2 & YTD 2014/2013	42
Property-Level EBITDA Margins Q2 & YTD 2014/2013	43
Property-Level EBITDA Reconciliation Q1 2014	44
Property-Level EBITDA Reconciliation Q1 2013	45
Property-Level EBITDA Reconciliation Q1 2014/2013 Footnotes	46
Property-Level EBITDA Reconciliation Q2 2014	47
Property-Level EBITDA Reconciliation Q2 2013	48
Property-Level EBITDA Reconciliation Q2 2014/2013 Footnotes	49

Supplemental Financial Information – Unaudited August 7, 2014  

Property-Level EBITDA Reconciliation Q2 YTD 2014	50
Property-Level EBITDA Reconciliation Q2 YTD 2013	51
Property-Level EBITDA Reconciliation Q2 YTD 2014/2013 Footnotes	52
Property-Level EBITDA Reconciliation Q3 2013	53
Property-Level EBITDA Reconciliation Q3 2013 Footnotes	54
Property-Level EBITDA Reconciliation Q4 2013	55
Property-Level EBITDA Reconciliation Q4 2013 Footnotes	56
Property-Level EBITDA Reconciliation FY 2013	57
Property-Level EBITDA Reconciliation FY 2013 Footnotes	58

Supplemental Financial Information – Unaudited August 7, 2014  

CORPORATE PROFILE, FINANCIAL DISCLOSURES,

AND SAFE HARBOR

CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR Page 3

Supplemental Financial Information – Unaudited August 7, 2014  

About Sunstone

Sunstone Hotel Investors, Inc. (NYSE:SHO) is a lodging real estate investment trust (REIT) that, as of August 7, 2014, has interests in 30 hotels held for investment comprised of 14,304 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. 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

·Continued balance sheet strength.

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 August 7, 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 August 7, 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 August 7, 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 Available to Common Stockholders (as defined below); hotel EBITDA; and 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 Available to Common Stockholders, hotel EBITDA, and 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. Our presentation of FFO conforms to the National Association of Real Estate Investment Trusts’ (“NAREIT”) definition of FFO. This may not be comparable to FFO reported by other REITs that do not define the terms in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently than we do.

CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR Page 6

Supplemental Financial Information – Unaudited August 7, 2014  

We also present Adjusted FFO Available to Common Stockholders 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.

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 Available to Common Stockholders:

·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 Available to Common Stockholders is not consistent with reflecting the ongoing performance of our remaining assets.

CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR Page 7

Supplemental Financial Information – Unaudited August 7, 2014  

·Other adjustments: we exclude other adjustments such as lawsuit settlement 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 for that period and/or the ongoing operations of our hotels.

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 Available to Common Stockholders, we also exclude the non-cash gains or losses on our derivatives, as well as preferred stock dividends and any 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 to EBITDA and Adjusted EBITDA are set forth on page 13 of this supplemental package. Reconciliations of net income to FFO and Adjusted FFO Available to Common Stockholders are set forth on page 14 of this supplemental package.

Our 29 comparable hotels include all hotels held for investment by the Company as of June 30, 2014, and also include prior ownership results as applicable in 2013 for the Hilton New Orleans St. Charles acquired in May 2013, the Boston Park Plaza acquired in July 2013, and the Hyatt Regency San Francisco acquired in December 2013.

Our 30 pro forma comparable hotels include the 29 comparable hotels plus prior ownership results in 2014 and 2013 for the Marriott Wailea acquired in July 2014.

CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR Page 8

Supplemental Financial Information – Unaudited August 7, 2014  

CORPORATE FINANCIAL INFORMATION

CORPORATE FINANCIAL INFORMATION Page 9

Supplemental Financial Information – Unaudited August 7, 2014

Condensed Consolidated Balance Sheets

Q2 2014 – Q2 2013

(In thousands)	June 30, 2014 (1)		March 31, 2014 (2)		December 31, 2013 (3)		September 30, 2013 (4)		June 30, 2013 (5)
Assets
Investment in hotel properties:
Land	$	450,304	$	439,304	$	439,304	$	323,164	$	264,637
Buildings & improvements	3,013,911		2,986,687		2,977,458		2,835,056		2,655,644
Furniture, fixtures, & equipment	432,572		422,676		414,192		387,680		366,536
Other	218,300		224,863		207,878		201,676		188,891
	4,115,087		4,073,530		4,038,832		3,747,576		3,475,708
Less accumulated depreciation & amortization	(884,192)		(845,751)		(807,450)		(770,527)		(734,759)
	3,230,895		3,227,779		3,231,382		2,977,049		2,740,949
Other assets, net	47,449		38,871		39,730		40,947		62,049
Current assets:
Cash and cash equivalents	360,702		94,792		104,363		100,225		123,217
Cash proceeds held by accommodator	-		-		-		-		72,287
Restricted cash	87,975		82,748		89,306		84,139		76,711
Other current assets, net	55,939		52,852		44,017		53,326		41,943
Total assets	$	3,782,960	$	3,497,042	$	3,508,798	$	3,255,686	$	3,117,156

*Footnotes on following page

CORPORATE FINANCIAL INFORMATION Page 10  

Supplemental Financial Information – Unaudited August 7, 2014

Condensed Consolidated Balance Sheets

Q2 2014 – Q2 2013 (cont.)

(In thousands)	June 30, 2014 (1)		March 31, 2014 (2)		December 31, 2013 (3)		September 30, 2013 (4)		June 30, 2013 (5)
Liabilities
Current liabilities:
Current portion of notes payable	$	122,835	$	24,008	$	23,289	$	23,351	$	20,571
Other current liabilities	107,198		102,320		96,780		100,997		82,229
Total current liabilities	230,033		126,328		120,069		124,348		102,800
Notes payable, less current portion	1,269,587		1,374,394		1,380,786		1,387,006		1,275,626
Capital lease obligations, less current portion	15,576		15,577		15,586		15,594		15,603
Other liabilities	34,106		40,610		39,958		39,901		38,955
Total liabilities	1,549,302		1,556,909		1,556,399		1,566,849		1,432,984
Equity
Stockholders’ equity:
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	1,994		1,814		1,809		1,609		1,609
Additional paid in capital	2,335,709		2,071,421		2,068,721		1,796,656		1,795,295
Retained earnings	260,518		218,642		224,364		219,837		205,788
Cumulative dividends	(535,281)		(522,911)		(511,444)		(500,001)		(489,558)
Total stockholders’ equity	2,177,940		1,883,966		1,898,450		1,633,101		1,628,134
Non-controlling interest in consolidated joint ventures	55,718		56,167		53,949		55,736		56,038
Total equity	2,233,658		1,940,133		1,952,399		1,688,837		1,684,172
Total liabilities and equity	$	3,782,960	$	3,497,042	$	3,508,798	$	3,255,686	$	3,117,156

(1) As presented on Form 10-Q to be filed in August 2014.

(2) As presented on Form 10-Q filed May 7, 2014.

(3) As presented on Form 10-K filed February 25, 2014.

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

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

CORPORATE FINANCIAL INFORMATION Page 11  

Supplemental Financial Information – Unaudited August 7, 2014

Consolidated Statements of Operations

Q2 & YTD 2014/2013

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands, except per share data)	2014		2013		2014		2013
Revenues
Room	$	214,940	$	168,260	$	383,067	$	300,883
Food and beverage	68,733		52,842		128,644		102,470
Other operating	17,179		13,536		32,624		26,206
Total revenues	300,852		234,638		544,335		429,559
Operating expenses
Room	53,418		40,537		102,337		77,991
Food and beverage	45,109		35,058		88,017		70,154
Other operating	5,006		3,887		10,001		8,129
Advertising and promotion	13,655		11,240		26,626		22,505
Repairs and maintenance	10,706		8,275		21,587		16,649
Utilities	7,788		6,129		16,077		12,312
Franchise costs	10,261		8,771		18,338		15,249
Property tax, ground lease and insurance	21,413		19,297		40,465		37,765
Property general and administrative	31,963		25,288		60,885		48,894
Corporate overhead	7,674		7,359		14,233		13,530
Depreciation and amortization	37,973		32,175		75,588		66,191
Total operating expenses	244,966		198,016		474,154		389,369
Operating income	55,886		36,622		70,181		40,190
Interest and other income	891		788		1,607		1,351
Interest expense	(18,331)		(17,272)		(36,614)		(34,686)
Loss on extinguishment of debt	-		-		-		(44)
Income before income taxes and discontinued operations	38,446		20,138		35,174		6,811
Income tax provision	(110)		(129)		(334)		(6,286)
Income from continuing operations	38,336		20,009		34,840		525
Income from discontinued operations	5,199		-		5,199		48,410
Net income	43,535		20,009		40,039		48,935
Income from consolidated joint venture attributable to non-controlling interest	(1,659)		(1,226)		(3,885)		(1,523)
Distributions to non-controlling interest	(8)		(8)		(16)		(16)
Dividends paid on unvested restricted stock compensation	(97)		-		(197)		-
Preferred stock dividends and redemption charges	(2,300)		(3,510)		(4,600)		(14,413)
Undistributed income allocated to unvested restricted stock compensation	(206)		(126)		(87)		(264)
Income available to common stockholders	$	39,265	$	15,139	$	31,254	$	32,719
Basic and diluted per share amounts:
Income (loss) from continuing operations available (attributable) to common stockholders	$	0.19	$	0.09	$	0.14	$	(0.10)
Income from discontinued operations	0.03		-		0.03		0.31
Basic and diluted income available to common stockholders per common share	$	0.22	$	0.09	$	0.17	$	0.21
Basic and diluted weighted average common shares outstanding	182,604		160,843		181,836		155,987
Dividends declared per common share	$	0.05	$	-	$	0.10	$	-

CORPORATE FINANCIAL INFORMATION Page 12  

Supplemental Financial Information – Unaudited August 7, 2014

Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Q2 & YTD 2014/2013

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In thousands)	2014		2013		2014		2013
Net income	$	43,535	$	20,009	$	40,039	$	48,935
Operations held for investment:
Depreciation and amortization	37,973		32,175		75,588		66,191
Amortization of lease intangibles	1,030		1,028		2,058		2,056
Interest expense	18,331		17,272		36,614		34,686
Income tax provision	110		129		334		6,286
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest	(1,659)		(1,226)		(3,885)		(1,523)
Depreciation and amortization	(824)		(903)		(1,645)		(2,338)
Interest expense	(568)		(592)		(1,135)		(1,169)
Discontinued operations:
Interest expense	-		-		-		99
EBITDA	97,928		67,892		147,968		153,223
Operations held for investment:
Amortization of deferred stock compensation	1,944		1,241		3,316		2,316
Amortization of favorable and unfavorable contracts, net	46		115		92		229
Non-cash straightline lease expense	500		342		1,012		1,035
Capital lease obligation interest - cash ground rent	(351)		(351)		(702)		(702)
Gain on sale of assets	(49)		(5)		(55)		(5)
Loss on extinguishment of debt	-		-		-		44
Closing costs - completed acquisitions	102		690		158		837
Lawsuit settlement costs	-		358		-		358
Prior year property tax adjustments, net	(357)		106		(3,235)		106
Non-controlling interests:
Non-cash straightline lease expense	(112)		(112)		(225)		(225)
Prior year property tax adjustments, net	-		-		696		-
Discontinued operations:
Gain on sale of assets, net	(5,199)		-		(5,199)		(51,620)
Loss on extinguishment of debt	-		-		-		3,115
	(3,476)		2,384		(4,142)		(44,512)
Adjusted EBITDA	$	94,452	$	70,276	$	143,826	$	108,711

CORPORATE FINANCIAL INFORMATION Page 13  

Supplemental Financial Information – Unaudited August 7, 2014

Reconciliation of Net Income to FFO and Adjusted FFO Available to Common Stockholders

Q2 & YTD 2014/2013

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In thousands, except per share data)	2014		2013		2014		2013
Net income	$	43,535	$	20,009	$	40,039	$	48,935
Operations held for investment:
Real estate depreciation and amortization	37,575		31,831		74,801		65,503
Amortization of lease intangibles	1,030		1,028		2,058		2,056
Gain on sale of assets	(49)		(5)		(55)		(5)
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest	(1,659)		(1,226)		(3,885)		(1,523)
Real estate depreciation and amortization	(824)		(903)		(1,645)		(2,338)
Discontinued operations:
Gain on sale of assets, net	(5,199)		-		(5,199)		(51,620)
FFO	74,409		50,734		106,114		61,008
Operations held for investment:
Preferred stock dividends and redemption charges	(2,300)		(3,510)		(4,600)		(14,413)
Amortization of favorable and unfavorable contracts, net	46		115		92		229
Non-cash straightline lease expense	500		342		1,012		1,035
Non-cash interest related to gain on derivatives, net	(125)		(260)		(234)		(417)
Loss on extinguishment of debt	-		-		-		44
Closing costs - completed acquisitions	102		690		158		837
Lawsuit settlement costs	-		358		-		358
Prior year property tax adjustments, net	(357)		106		(3,235)		106
Income tax provision related to prior years	-		129		-		6,286
Preferred stock redemption charges	-		129		-		4,770
Non-controlling interests:
Non-cash straightline lease expense	(112)		(112)		(225)		(225)
Non-cash interest related to loss on derivative	-		(1)		-		(1)
Prior year property tax adjustments, net	-		-		696		-
Discontinued operations:
Loss on extinguishment of debt	-		-		-		3,115
	(2,246)		(2,014)		(6,336)		1,724
Adjusted FFO available to common stockholders	$	72,163	$	48,720	$	99,778	$	62,732
FFO per diluted share	$	0.41	$	0.31	$	0.58	$	0.39
Adjusted FFO available to common stockholders per diluted share	$	0.39	$	0.30	$	0.55	$	0.40
Basic weighted average shares outstanding	182,604		160,843		181,836		155,987
Shares associated with unvested restricted stock awards	475		385		473		344
Diluted weighted average shares outstanding	183,079		161,228		182,309		156,331

CORPORATE FINANCIAL INFORMATION Page 14  

Supplemental Financial Information – Unaudited August 7, 2014

Pro Forma Consolidated Statements of Operations

Q2 2014 – Q1 2013

	Three Months Ended (1)				Year Ended (1)		Three Months Ended (1)
(Unaudited and in thousands)	June 30,		March 31,		Dec. 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
	2014		2014		2013		2013		2013		2013		2013
Revenues
Room	$	224,471	$	181,004	$	783,301	$	193,186	$	209,156	$	211,902	$	169,057
Food and beverage	71,446		63,057		249,626		64,545		59,471		65,790		59,820
Other operating	18,404		16,837		67,427		16,870		18,014		16,599		15,944
Total revenues	314,321		260,898		1,100,354		274,601		286,641		294,291		244,821
Operating Expenses
Room	55,955		51,892		208,505		52,581		54,291		52,655		48,978
Food and beverage	47,232		45,182		179,059		45,216		44,494		45,106		44,243
Other expenses	105,549		98,368		402,000		100,698		101,986		101,631		97,685
Corporate overhead	7,674		6,559		26,671		6,555		6,586		7,359		6,171
Depreciation and amortization	40,103		39,745		160,440		40,189		39,916		39,069		41,266
Total operating expenses	256,513		241,746		976,675		245,239		247,273		245,820		238,343
Operating Income	57,808		19,152		123,679		29,362		39,368		48,471		6,478
Interest income and other income	891		716		3,004		743		727		788		746
Interest expense	(18,331)		(18,283)		(74,721)		(18,699)		(18,854)		(18,600)		(18,568)
Income (loss) before income taxes and discontinued operations	40,368		1,585		51,962		11,406		21,241		30,659		(11,344)
Income tax provision	(110)		(224)		(8,145)		(1,435)		(424)		(129)		(6,157)
Income (loss) from continuing operations	40,258		1,361		43,817		9,971		20,817		30,530		(17,501)
Income from discontinued operations	5,199		-		48,410		-		-		-		48,410
Net Income	$	45,457	$	1,361	$	92,227	$	9,971	$	20,817	$	30,530	$	30,909
Adjusted EBITDA (2)	$	98,504	$	56,361	$	288,434	$	70,968	$	79,673	$	89,019	$	48,774

(1)

Includes the Company’s ownership results and prior ownership results for the pro forma 30 hotel portfolio held for investment by the Company as of June 30, 2014.  Excludes interest expense and loss on extinguishment of debt on the Senior Notes due to their repayment in January 2013. Includes the reduction of ground lease expense on the Fairmont Newport Beach due to the Company’s land acquisition in June 2014 along with 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 2014 can be found  on pages 16 and 18 of this supplemental package. Full year 2013 can be found on page 22 of this supplemental package.

CORPORATE FINANCIAL INFORMATION Page 15  

Supplemental Financial Information – Unaudited August 7, 2014

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

Q1 2014

	Three Months Ended March 31, 2014
				Acquisition:		Acquisition:		Issuance:
				Fairmont Newport		Marriott		Common		Pro
(In thousands, except per share amounts)	Actual (1)			Beach Land (2)		Wailea (3)		Stock (4)		Forma (5)
Net income (loss)	$	(3,496	)	$	166	$	4,691	$	-	$	1,361
Operations held for investment:
Depreciation and amortization	37,615			-		2,130		-		39,745
Amortization of lease intangibles	1,028			-		-		-		1,028
Interest expense	18,283			-		-		-		18,283
Income tax provision	224			-		-		-		224
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest	(2,226		)	-		-		-		(2,226		)
Depreciation and amortization	(821		)	-		-		-		(821		)
Interest expense	(567		)	-		-		-		(567		)
EBITDA	50,040			166		6,821		-		57,027
Operations held for investment:
Amortization of deferred stock compensation	1,372			-		-		-		1,372
Amortization of favorable and unfavorable contracts, net	46			-		-		-		46
Non-cash straightline lease expense	512			-		-		-		512
Capital lease obligation interest - cash ground rent	(351		)	-		-		-		(351		)
Gain on sale of assets	(6		)	-		-		-		(6		)
Closing costs - completed acquisitions	56			-		-		-		56
Prior year property tax adjustments, net	(2,878		)	-		-		-		(2,878		)
Non-controlling interests:
Non-cash straightline lease expense	(113		)	-		-		-		(113		)
Prior year property tax adjustments, net	696			-		-		-		696
	(666		)	-		-		-		(666		)
Adjusted EBITDA	$	49,374		$	166	$	6,821	$	-	$	56,361

*Footnotes on following page

CORPORATE FINANCIAL INFORMATION Page 16  

Supplemental Financial Information – Unaudited August 7, 2014

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

Available to Common Stockholders

Q1 2014

	Three Months Ended March 31, 2014
			Acquisition:		Acquisition:		Issuance:
			Fairmont Newport		Marriott		Common		Pro
(In thousands, except per share amounts)	Actual (1)		Beach Land (2)		Wailea (3)		Stock (4)		Forma (5)
Net income (loss)	$	(3,496)	$	166	$	4,691	$	-	$	1,361
Operations held for investment:
Real estate depreciation and amortization	37,226		-		2,130		-		39,356
Amortization of lease intangibles	1,028		-		-		-		1,028
Gain on sale of assets	(6)		-		-		-		(6		)
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest	(2,226)		-		-		-		(2,226		)
Real estate depreciation and amortization	(821)		-		-		-		(821		)
FFO	31,705		166		6,821		-		38,692
Operations held for investment:
Preferred stock dividends	(2,300)		-		-		-		(2,300		)
Amortization of favorable and unfavorable contracts, net	46		-		-		-		46
Non-cash straightline lease expense	512		-		-		-		512
Non-cash interest related to gain on derivatives, net	(109)		-		-		-		(109		)
Closing costs - completed acquisitions	56		-		-		-		56
Prior year property tax adjustments, net	(2,878)		-		-		-		(2,878		)
Non-controlling interests:
Non-cash straightline lease expense	(113)		-		-		-		(113		)
Prior year property tax adjustments, net	696		-		-		-		696
	(4,090)		-		-		-		(4,090		)
Adjusted FFO available to common stockholders	$	27,615	$	166	$	6,821	$	-	$	34,602
FFO per diluted share	$	0.17							$	0.19
Adjusted FFO available to common stockholders per diluted share	$	0.15							$	0.17
Basic weighted average shares outstanding	181,061						22,128		203,189
Shares associated with unvested restricted stock awards	469						-		469
Diluted weighted average shares outstanding	181,530						22,128		203,658

(1) Actual represents the Company’s ownership results for the 29 hotels in which the Company had interests as of March 31, 2014.

(2) Acquisition: Fairmont Newport Beach Land represents the reduction in ground lease expense payable to a third party due to the Company’s acquisition of approximately seven acres of land underlying the hotel on June 2, 2014.

(3) Acquisition: Marriott Wailea represents prior ownership results for the hotel which was acquired by the Company on July 17, 2014, adjusted for the Company’s pro forma depreciation expense.

(4) Issuance: Common Stock represents the 99,460 shares issued in connection with the Company’s ATM program in March 2014, along with the 18,000,000 shares issued by the Company in connection with a common stock offering in June 2014, and the 4,034,970 shares issued directly to the seller of the Marriott Wailea in July 2014.

(5) Pro Forma represents the Company’s ownership results and prior ownership results for the pro forma 30 hotel portfolio and land acquisition, as well as the effects of the common stock issuances in March 2014, June 2014 and July 2014.

CORPORATE FINANCIAL INFORMATION Page 17  

Supplemental Financial Information – Unaudited August 7, 2014

Reconciliation of Pro Forma Net Income to EBITDA and Adjusted EBITDA

Q2 2014

	Three Months Ended June 30, 2014
							Acquisition:		Acquisition:		Issuance:
				Discontinued			Fairmont Newport		Marriott		Common		Pro
(In thousands, except per share amounts)	Actual (1)			Operations (2)			Beach Land (3)		Wailea (4)		Stock (5)		Forma (6)
Net income	$	43,535		$	(5,199	)	$	113	$	1,809	$	-	$	40,258
Operations held for investment:
Depreciation and amortization	37,973			-			-		2,130		-		40,103
Amortization of lease intangibles	1,030			-			-		-		-		1,030
Interest expense	18,331			-			-		-		-		18,331
Income tax provision	110			-			-		-		-		110
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest	(1,659		)	-			-		-		-		(1,659		)
Depreciation and amortization	(824		)	-			-		-		-		(824		)
Interest expense	(568		)	-			-		-		-		(568		)
EBITDA	97,928			(5,199		)	113		3,939		-		96,781
Operations held for investment:
Amortization of deferred stock compensation	1,944			-			-		-		-		1,944
Amortization of favorable and unfavorable contracts, net	46			-			-		-		-		46
Non-cash straightline lease expense	500			-			-		-		-		500
Capital lease obligation interest - cash ground rent	(351		)	-			-		-		-		(351		)
Gain on sale of assets	(49		)	-			-		-		-		(49		)
Closing costs - completed acquisitions	102			-			-		-		-		102
Prior year property tax adjustments, net	(357		)	-			-		-		-		(357		)
Non-controlling interests:
Non-cash straightline lease expense	(112		)	-			-		-		-		(112		)
Discontinued Operations:
Gain on sale of assets, net	(5,199		)	5,199			-		-		-		-
	(3,476		)	5,199			-		-		-		1,723
Adjusted EBITDA	$	94,452		$	-		$	113	$	3,939	$	-	$	98,504

*Footnotes on following page

CORPORATE FINANCIAL INFORMATION Page 18  

Supplemental Financial Information – Unaudited August 7, 2014  

Reconciliation of Pro Forma Net Income to FFO and Adjusted FFO

Available to Common Stockholders

Q2 2014

	Three Months Ended June 30, 2014
							Acquisition:		Acquisition:		Issuance:
				Discontinued			Fairmont Newport		Marriott		Common		Pro
(In thousands, except per share amounts)	Actual (1)			Operations (2)			Beach Land (3)		Wailea (4)		Stock (5)		Forma (6)
Net income	$	43,535		$	(5,199	)	$	113	$	1,809	$	-	$	40,258
Operations held for investment:
Real estate depreciation and amortization	37,575			-			-		2,130		-		39,705
Amortization of lease intangibles	1,030			-			-		-		-		1,030
Gain on sale of assets	(49		)	-			-		-		-		(49		)
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest	(1,659		)	-			-		-		-		(1,659		)
Real estate depreciation and amortization	(824		)	-			-		-		-		(824		)
Discontinued Operations:
Gain on sale of assets, net	(5,199		)	5,199			-		-		-		-
FFO	74,409			-			113		3,939		-		78,461
Operations held for investment:
Preferred stock dividends	(2,300		)	-			-		-		-		(2,300		)
Amortization of favorable and unfavorable contracts, net	46			-			-		-		-		46
Non-cash straightline lease expense	500			-			-		-		-		500
Non-cash interest related to gain on derivatives, net	(125		)	-			-		-		-		(125		)
Closing costs - completed acquisitions	102			-			-		-		-		102
Prior year property tax adjustments, net	(357		)	-			-		-		-		(357		)
Non-controlling interests:
Non-cash straightline lease expense	(112		)	-			-		-		-		(112		)
	(2,246		)	-			-		-		-		(2,246		)
Adjusted FFO available to common stockholders	$	72,163		$	-		$	113	$	3,939	$	-	$	76,215
FFO per diluted share	$	0.41											$	0.38
Adjusted FFO available to common stockholders per diluted share	$	0.39											$	0.37
Basic weighted average shares outstanding	182,604										20,848		203,452
Shares associated with unvested restricted stock awards	475										-		475
Diluted weighted average shares outstanding	183,079										20,848		203,927

(1) Actual represents the Company’s ownership results for the 29 hotels in which the Company had interests as of June 30, 2014.

(2) Discontinued Operations  represents the recognition of a net deferred gain on the January 2013 sale of the Kahler Grand, Kahler Inn & Suites, Marriott Rochester, Residence Inn by Marriott Rochester and the Rochester commercial laundry facility.

(3) Acquisition: Fairmont Newport Beach Land represents the reduction in ground lease expense payable to a third party due to the Company’s acquisition of approximately seven acres of land underlying the hotel on June 2, 2014.

(4) Acquisition: Marriott Wailea represents prior ownership results for the hotel which was acquired by the Company on July 17, 2014, adjusted for the Company’s pro forma depreciation expense.

(5) Issuance: Common Stock represents the 18,000,000 shares issued by the Company in connection with a common stock offering in June 2014, along with the 4,034,970 shares issued directly to the seller of the Marriott Wailea in July 2014.

(6) Pro Forma represents the Company’s ownership results and prior ownership results for the pro forma 30 hotel portfolio and land acquisition, as well as the effects of the common stock issuances in June 2014 and July 2014.

CORPORATE FINANCIAL INFORMATION Page 19  

Supplemental Financial Information – Unaudited August 7, 2014

Reconciliation of Pro Forma Net Income to EBITDA and Adjusted EBITDA
Q2 YTD 2014

	Six Months Ended June 30, 2014
							Acquisition:		Acquisition:		Issuance:
				Discontinued			Fairmont Newport		Marriott		Common		Pro
(In thousands, except per share amounts)	Actual (1)			Operations (2)			Beach Land (3)		Wailea (4)		Stock (5)		Forma (6)
Net income	$	40,039		$	(5,199	)	$	279	$	6,500	$	-	$	41,619
Operations held for investment:
Depreciation and amortization	75,588			-			-		4,260		-		79,848
Amortization of lease intangibles	2,058			-			-		-		-		2,058
Interest expense	36,614			-			-		-		-		36,614
Income tax provision	334			-			-		-		-		334
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest	(3,885		)	-			-		-		-		(3,885		)
Depreciation and amortization	(1,645		)	-			-		-		-		(1,645		)
Interest expense	(1,135		)	-			-		-		-		(1,135		)
EBITDA	147,968			(5,199		)	279		10,760		-		153,808
Operations held for investment:
Amortization of deferred stock compensation	3,316			-			-		-		-		3,316
Amortization of favorable and unfavorable contracts, net	92			-			-		-		-		92
Non-cash straightline lease expense	1,012			-			-		-		-		1,012
Capital lease obligation interest - cash ground rent	(702		)	-			-		-		-		(702		)
Gain on sale of assets	(55		)	-			-		-		-		(55		)
Closing costs - completed acquisitions	158			-			-		-		-		158
Prior year property tax adjustments, net	(3,235		)	-			-		-		-		(3,235		)
Non-controlling interests:
Non-cash straightline lease expense	(225		)	-			-		-		-		(225		)
Prior year property tax adjustments, net	696			-			-		-		-		696
Discontinued Operations:
Gain on sale of assets, net	(5,199		)	5,199			-		-		-		-
	(4,142		)	5,199			-		-		-		1,057
Adjusted EBITDA	$	143,826		$	-		$	279	$	10,760	$	-	$	154,865

*Footnotes on following page

CORPORATE FINANCIAL INFORMATION Page 20  

Supplemental Financial Information – Unaudited August 7, 2014  

Reconciliation of Pro Forma Net Income to FFO and Adjusted FFO
Available to Common Stockholders
Q2 YTD 2014

	Six Months Ended June 30, 2014
							Acquisition:		Acquisition:		Issuance:
				Discontinued			Fairmont Newport		Marriott		Common		Pro
(In thousands, except per share amounts)	Actual (1)			Operations (2)			Beach Land (3)		Wailea (4)		Stock (5)		Forma (6)
Net income	$	40,039		$	(5,199	)	$	279	$	6,500	$	-	$	41,619
Operations held for investment:
Real estate depreciation and amortization	74,801			-			-		4,260		-		79,061
Amortization of lease intangibles	2,058			-			-		-		-		2,058
Gain on sale of assets	(55		)	-			-		-		-		(55		)
Non-controlling interests:
Income from consolidated joint venture attributable to non-controlling interest	(3,885		)	-			-		-		-		(3,885		)
Real estate depreciation and amortization	(1,645		)	-			-		-		-		(1,645		)
Discontinued Operations:
Gain on sale of assets, net	(5,199		)	5,199			-		-		-		-
FFO	106,114			-			279		10,760		-		117,153
Operations held for investment:
Preferred stock dividends	(4,600		)	-			-		-		-		(4,600		)
Amortization of favorable and unfavorable contracts, net	92			-			-		-		-		92
Non-cash straightline lease expense	1,012			-			-		-		-		1,012
Non-cash interest related to gain on derivatives, net	(234		)	-			-		-		-		(234		)
Closing costs - completed acquisitions	158			-			-		-		-		158
Prior year property tax adjustments, net	(3,235		)	-			-		-		-		(3,235		)
Non-controlling interests:
Non-cash straightline lease expense	(225		)	-			-		-		-		(225		)
Prior year property tax adjustments, net	696			-			-		-		-		696
	(6,336		)	-			-		-		-		(6,336		)
Adjusted FFO available to common stockholders	$	99,778		$	-		$	279	$	10,760	$	-	$	110,817
FFO per diluted share	$	0.58											$	0.57
Adjusted FFO available to common stockholders per diluted share	$	0.55											$	0.54
Basic weighted average shares outstanding	181,836										21,485		203,321
Shares associated with unvested restricted stock awards	473										-		473
Diluted weighted average shares outstanding	182,309										21,485		203,794

(1) Actual represents the Company’s ownership results for the 29 hotels in which the Company had interests as of June 30, 2014.

(2) Discontinued Operations  represents the recognition of a net deferred gain on the January 2013 sale of the Kahler Grand, Kahler Inn & Suites, Marriott Rochester, Residence Inn by Marriott Rochester and the Rochester commercial laundry facility.

(3) Acquisition: Fairmont Newport Beach Land represents the reduction in ground lease expense payable to a third party due to the Company’s acquisition of approximately seven acres of land underlying the hotel on June 2, 2014.

(4) Acquisition: Marriott Wailea represents prior ownership results for the hotel which was acquired by the Company on July 17, 2014, adjusted for the Company’s pro forma depreciation expense.

(5) Issuance: Common Stock represents the 99,460 shares issued in connection with the Company’s ATM program in March 2014, along with the 18,000,000 shares issued by the Company in connection with a common stock offering in June 2014, and the 4,034,970 shares issued directly to the seller of the Marriott Wailea in July 2014.

(6) Pro Forma represents the Company’s ownership results and prior ownership results for the pro forma 30 hotel portfolio and land acquisition, as well as the effects of the common stock issuances in March 2014, June 2014 and July 2014.

CORPORATE FINANCIAL INFORMATION Page 21  

Supplemental Financial Information – Unaudited August 7, 2014

Reconciliation of Pro Forma Net Income to EBITDA and Adjusted EBITDA

FY 2013

	Year Ended December 31, 2013
					Acquisition:		Acquisition:		Acquisition:		Acquisition:		Acquisition:		Repurchase:		Investment:		Issuance:		Redemption:		Redemption:
			Discontinued		Hilton		Boston		Hyatt Regency		Fairmont Newport		Marriott		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)		Beach Land (6)		Wailea (7)		Senior Notes (8)		Equity (9)		Stock (10)		Stock (11)		Stock (12)		Forma (13)
Net income	$	70,001	$	(48,410)	$	1,348	$	1,443	$	6,621	$	665	$	11,757	$	209	$	183	$	-	$	-	$	-	$	43,817
Operations held for investment:
Depreciation and amortization	137,476		-		714		3,698		10,032		-		8,520		-		-		-		-		-		160,440
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		665		20,277		44		183		-		-		-		280,925
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	$	665	$	20,277	$	-	$	183	$	-	$	-	$	-	$	288,434

*Footnotes on following page

CORPORATE FINANCIAL INFORMATION Page 22  

Supplemental Financial Information – Unaudited August 7, 2014

Reconciliation of Pro Forma Net Income to FFO and Adjusted FFO

Available to Common Stockholders

FY 2013

	Year Ended December 31, 2013
					Acquisition:		Acquisition:		Acquisition:		Acquisition:		Acquisition:		Repurchase:		Investment:		Issuance:		Redemption:		Redemption:
			Discontinued		Hilton		Boston		Hyatt Regency		Fairmont Newport		Marriott		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)		Beach Land (6)		Wailea (7)		Senior Notes (8)		Equity (9)		Stock (10)		Stock (11)		Stock (12)		Forma (13)
Net income	$	70,001	$	(48,410)	$	1,348	$	1,443	$	6,621	$	665	$	11,757	$	209	$	183	$	-	$	-	$	-	$	43,817
Operations held for investment:
Real estate depreciation and amortization	136,047		-		714		3,698		10,032		-		8,520		-		-		-		-		-		159,011
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	150,559		3,210		2,062		5,141		16,653		665		20,277		209		183		-		-		-		198,959
Operations held for investment:
Preferred stock dividends and redemption charges	(19,013)		-		-		-		-		-		-		-		-		-		6,991		2,822		(9,200)
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)		-		-		-		-		-		-		-		-		-		-		-
	600		(3,115)		-		-		-		-		-		(44)		-		-		2,350		2,693		2,484
Adjusted FFO available to common stockholders	$	151,159	$	95	$	2,062	$	5,141	$	16,653	$	665	$	20,277	$	165	$	183	$	-	$	2,350	$	2,693	$	201,443
FFO per diluted share	$	0.93																							$	0.98
Adjusted FFO available to common stockholders per diluted share	$	0.93																							$	0.99
Basic weighted average shares outstanding	161,784																		41,157						202,941
Shares associated with unvested restricted stock awards	467																		-						467
Diluted weighted average shares outstanding	162,251																		41,157						203,408

(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)	Acquisition: Fairmont Newport Beach Land represents the reduction in ground lease expense payable to a third party due to the Company’s acquisition of approximately seven acres of land underlying the hotel on June 2, 2014.
(7)	Acquisition: Marriott Wailea represents prior ownership results for the hotel which was acquired by the Company on July 17, 2014, adjusted for the Company’s pro forma depreciation expense.
(8)	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.
(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 25,300,000 shares, the 20,000,000 shares and the 18,000,000 shares issued by the Company in connection with common stock offerings in February 2013, November 2013 and June 2014, respectively. It also includes the 99,460 shares issued in connection with the Company’s ATM program in March 2014, along with the 4,034,970 shares issued directly to the seller of the Marriott Wailea in July 2014.
(11)	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.
(12)	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.
(13)	Pro Forma represents the Company’s ownership results and prior ownership results for the pro forma 30 hotel portfolio and land acquisition, 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, November 2013, March 2014, June 2014, and July 2014, along with the Series A and Series C Preferred Stock redemptions in March 2013 and May 2013, respectively.

CORPORATE FINANCIAL INFORMATION Page 23  

Supplemental Financial Information – Unaudited August 7, 2014

EARNINGS GUIDANCE

EARNINGS GUIDANCE Page 24  

Supplemental Financial Information – Unaudited August 7, 2014

Earnings Guidance for Q3 and FY 2014

The Company is providing guidance at this time, but does not undertake to make updates for any unanticipated 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 third quarter of 2014, the Company expects:

Metric	Quarter Ended September 30, 2014 Guidance
Comparable Hotel RevPAR Growth	+4.0% - 5.5%
Net Income ($ millions)	$26 - $29
Adjusted EBITDA ($ millions)	$83 - $86
Adjusted FFO Available to Common Stockholders ($ millions)	$61 - $64
Adjusted FFO Available to Common Stockholders per Diluted Share	$0.30 - $0.32
Diluted Weighted Average Shares Outstanding	203,400,000

For the full year 2014, the Company expects:

Metric	Prior 2014 FY Guidance (1)	Impact of Equity Offering and Marriott Wailea Acquisition	Adjusted Prior 2014 FY Guidance	2014 FY Guidance	Change in 2014 FY Guidance Midpoint
Comparable Hotel RevPAR Growth	+4.5% - 6.5%	(0.25%)	+4.25% - 6.25%	+4.5% - 6.5%	+0.25%
Net Income ($ millions)	$66 - $81	$2 - $3	$68 - $84	$73 - $84	+$2.5
Adjusted EBITDA ($ millions)	$281 - $296	$6 - $8	$287 - $304	$296 - $307	+$6.0
Adjusted FFO Available to Common Stockholders ($ millions)	$196 - $211	$6 - $8	$202 - $219	$211 - $222	+$6.0
Adjusted FFO Available to Common Stockholders per Diluted Share	$1.07 - $1.16	($0.04 - $0.03)	$1.03 - $1.13	$1.09 - $1.14	+$0.03
Diluted Weighted Average Shares Outstanding	182,100,000	11,400,000	193,500,000	193,500,000	-

(1) Reflects guidance presented on May 5, 2014.

EARNINGS GUIDANCE Page 25  

Supplemental Financial Information – Unaudited August 7, 2014

Earnings Guidance for Q3 and FY 2014

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

·Full year comparable hotel EBITDA margin expansion of approximately 50 to 125 basis points (an increase of 12.5 bps over the midpoint of prior guidance).

·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 26  

Supplemental Financial Information – Unaudited August 7, 2014

Reconciliation of Net Income to Adjusted EBITDA and Adjusted FFO

Available to Common Stockholders

Q3 and FY 2014

Reconciliation of Net Income to Adjusted EBITDA

	Quarter Ended						Year Ended
	September 30, 2014						December 31, 2014
(In thousands, except per share data)	Low			High			Low			High
Net income	$	26,300		$	29,300		$	72,800		$	83,800
Depreciation and amortization	40,050			40,050			156,200			156,200
Amortization of lease intangibles	1,000			1,000			4,000			4,000
Interest expense	17,000			17,000			69,500			69,500
Income tax provision	300			300			1,000			1,000
Non-controlling interests	(3,300		)	(3,300		)	(12,000		)	(12,000		)
Amortization of deferred stock compensation	1,800			1,800			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		)
Prior year property tax adjustments, net	-			-			(2,900		)	(2,900		)
Adjusted EBITDA	$	83,400		$	86,400		$	296,000		$	307,000

Reconciliation of Net Income to Adjusted FFO Available to Common Stockholders

Net income	$	26,300		$	29,300		$	72,800		$	83,800
Preferred stock dividends	(2,300		)	(2,300		)	(9,200		)	(9,200		)
Real estate depreciation and amortization	38,000			38,000			154,000			154,000
Non-controlling interests	(2,500		)	(2,500		)	(11,000		)	(11,000		)
Amortization of lease intangibles	1,000			1,000			4,000			4,000
Non-cash straightline lease expense	600			600			2,800			2,800
Prior year property tax adjustments, net	-			-			(2,900		)	(2,900		)
Adjusted FFO  available to common stockholders	$	61,100		$	64,100		$	210,500		$	221,500
Adjusted FFO available to common stockholders per diluted share	$	0.30		$	0.32		$	1.09		$	1.14
Diluted weighted average shares outstanding	203,400			203,400			193,500			193,500

EARNINGS GUIDANCE Page 27  

Supplemental Financial Information – Unaudited August 7, 2014

CAPITALIZATION

CAPITALIZATION Page 28  

Supplemental Financial Information – Unaudited August 7, 2014

Comparative Capitalization

Q2 2014 – Q2 2013

	June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,
(In thousands, except per share data)	2014		2014		2013		2013		2013
Common Share Price & Dividends
At the end of the quarter	$	14.93	$	13.73	$	13.40	$	12.74	$	12.08
High during quarter ended	$	15.25	$	14.00	$	14.06	$	13.49	$	13.09
Low during quarter ended	$	13.22	$	12.46	$	12.50	$	11.87	$	11.14
Common dividends per share	$	0.05	$	0.05	$	0.05	$	0.05	$	-
Common Shares & Units
Common shares outstanding (1)	205,432		183,349		182,868		182,871		162,871
Units outstanding	-		-		-		-		-
Total common shares and units outstanding	205,432		183,349		182,868		182,871		162,871
Capitalization
Market value of common equity	$	3,067,094	$	2,517,379	$	2,450,431	$	2,329,777	$		1,967,482
Liquidation value of preferred equity - Series D	115,000		115,000		115,000		115,000		115,000
Consolidated debt (2)	1,392,422		1,398,402		1,404,075		1,410,357		1,415,387
Consolidated total capitalization	4,574,516		4,030,781		3,969,506		3,855,134		3,497,869
Non-controlling interest in consolidated debt	(57,435)		(57,650)		(57,863)		(58,072)		(58,278)
Pro rata total capitalization	$	4,517,081	$	3,973,131	$	3,911,643	$	3,797,062	$		3,439,591
Consolidated debt to total capitalization	30.4%		34.7%		35.4%		36.6%		40.5%
Pro rata debt to pro rata total capitalization	29.6%		33.7%		34.4%		35.6%		39.5%
Consolidated debt and preferred equity to total capitalization	33.0%		37.5%		38.3%		39.6%		43.8%
Pro rata debt and preferred equity to total capitalization	32.1%		36.6%		37.4%		38.6%		42.8%

(1)	Reflects shares outstanding at respective dates. Common shares outstanding at June 30, 2014 includes the effects of the Company’s direct issuance of 4,034,970 shares to the seller of the Marriott Wailea in July 2014. Common shares outstanding at September 30, 2013 includes the effects of the Company’s issuance of 20,000,000 shares in November 2013.
(2)	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.

CAPITALIZATION Page 29

Supplemental Financial Information – Unaudited August 7, 2014

Consolidated Debt Summary Schedule

(In thousands)		Interest Rate /	Maturity	June 30, 2014		Balance At
Debt	Collateral	Spread	Date	Balance		Maturity
Fixed Rate Debt
Secured Mortgage Debt	Marriott Houston	5.34%	5/1/2015	$	21,286	$	20,706
Secured Mortgage Debt	Marriott Park City	5.34%	5/1/2015	13,876		13,498
Secured Mortgage Debt	Marriott Philadelphia	5.34%	5/1/2015	25,142		24,457
Secured Mortgage Debt	Marriott Tysons Corner	5.34%	5/1/2015	41,536		40,404
Secured Mortgage Debt	JW Marriott New Orleans	5.45%	9/1/2015	39,227		38,174
Secured Mortgage Debt	Renaissance Harborplace	5.13%	1/1/2016	90,661		85,227
Secured Mortgage Debt	Hilton North Houston	5.66%	3/11/2016	31,528		30,579
Secured Mortgage Debt	Renaissance Orlando at SeaWorld®	5.52%	7/1/2016	77,023		72,418
Secured Mortgage Debt	Embassy Suites Chicago	5.58%	3/1/2017	70,300		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	117,428		109,813
Secured Mortgage Debt	Embassy Suites La Jolla	6.60%	6/1/2019	67,461		62,284
Secured Mortgage Debt	Hilton Times Square	4.97%	11/1/2020	87,496		76,145
Secured Mortgage Debt	Renaissance Washington DC	5.95%	5/1/2021	125,363		106,855
Total Fixed Rate Debt				984,327		922,316
Secured Mortgage Debt	Hilton San Diego Bayfront	L + 3.25%	4/15/2016	229,740		223,330
Secured Mortgage Debt	Doubletree Guest Suites Times Square	L + 3.25%	10/7/2018	178,355		167,738
Credit Facility	Unsecured	L + 1.75% - 3.50%	11/1/2015	-		-
Total Variable Rate Debt				408,095		391,068
TOTAL CONSOLIDATED DEBT				$	1,392,422	$	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)				4.85%
Weighted Average Maturity of Debt				3.2 years

(1)   Average Interest Rate on variable-rate debt obligations is calculated based on the variable rates at June 30, 2014 and includes the effect of the Company’s interest rate derivative agreements.

CAPITALIZATION Page 30

Supplemental Financial Information – Unaudited August 7, 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 June 30, 2014 pro rata total capitalization as presented on page 29.

CAPITALIZATION Page 31

Supplemental Financial Information – Unaudited August 7, 2014

PROPERTY-LEVEL DATA

PROPERTY-LEVEL DATA Page 32

Supplemental Financial Information – Unaudited August 7, 2014

Property-Level Data

Hotel			Location	Brand	Number of Rooms	% of Total Rooms	Ownership Interest	Interest	Leasehold Maturity (1)	Year Acquired
1	Hilton San Diego Bayfront		California	Hilton	1,190	8.32%	75%	Leasehold	2071	2011
2	Boston Park Plaza		Massachusetts	Independent	1,054	7.37%	100%	Fee Simple		2013
3	Renaissance Washington DC		Washington DC	Marriott	807	5.64%	100%	Fee Simple		2005
4	Hyatt Regency San Francisco		California	Hyatt	803	5.61%	100%	Fee Simple		2013
5	Renaissance Orlando at SeaWorld® (2)		Florida	Marriott	781	5.46%	100%	Fee Simple		2005
6	Renaissance Harborplace		Maryland	Marriott	622	4.35%	100%	Leasehold	2085	2005
7	Marriott Wailea		Hawaii	Marriott	544	3.80%	100%	Fee Simple		2014
8	Renaissance Los Angeles Airport		California	Marriott	499	3.49%	100%	Fee Simple		2007
9	JW Marriott New Orleans (3)		Louisiana	Marriott	496	3.47%	100%	Leasehold	2081	2011
10	Hilton North Houston		Texas	Hilton	480	3.36%	100%	Fee Simple		2002
11	Doubletree Guest Suites Times Square		New York	Hilton	468	3.27%	100%	Leasehold	2127	2011
12	Marriott Quincy		Massachusetts	Marriott	464	3.24%	100%	Fee Simple		2007
13	Hilton Times Square		New York	Hilton	460	3.22%	100%	Leasehold	2091	2006
14	Fairmont Newport Beach		California	Fairmont	444	3.10%	100%	Fee Simple		2005
15	Hyatt Chicago Magnificent Mile		Illinois	Hyatt	419	2.93%	100%	Leasehold	2097	2012
16	Marriott Boston Long Wharf		Massachusetts	Marriott	412	2.88%	100%	Fee Simple		2007
17	Hyatt Regency Newport Beach		California	Hyatt	407	2.85%	100%	Leasehold	2048	2002
18	Marriott Tysons Corner		Virginia	Marriott	396	2.77%	100%	Fee Simple		2002
19	Marriott Houston		Texas	Marriott	390	2.73%	100%	Fee Simple		2002
20	Renaissance Long Beach		California	Marriott	374	2.61%	100%	Fee Simple		2005
21	Embassy Suites Chicago		Illinois	Hilton	368	2.57%	100%	Fee Simple		2002
22	Hilton Garden Inn Chicago Downtown/Magnificent Mile		Illinois	Hilton	361	2.52%	100%	Fee Simple		2012
23	Renaissance Westchester		New York	Marriott	348	2.43%	100%	Fee Simple		2010
24	Embassy Suites La Jolla		California	Hilton	340	2.38%	100%	Fee Simple		2006
25	Marriott Philadelphia		Pennsylvania	Marriott	289	2.02%	100%	Fee Simple		2002
26	Hilton New Orleans St. Charles		Louisiana	Hilton	250	1.75%	100%	Fee Simple		2013
27	Marriott Portland		Oregon	Marriott	249	1.74%	100%	Fee Simple		2000
28	Sheraton Cerritos		California	Sheraton	203	1.42%	100%	Leasehold	2087	2005
29	Marriott Park City		Utah	Marriott	199	1.39%	100%	Fee Simple		1999
30	Courtyard by Marriott Los Angeles		California	Marriott	187	1.31%	100%	Leasehold	2096	1999
	Total pro forma portfolio				14,304	100%
	(1)	Assumes the full exercise of all lease extensions.
	(2)	Reflects 100% economic interest in the Renaissance Orlando at SeaWorld®.
	(3)	Hotel is subject to 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 33

Supplemental Financial Information – Unaudited
August 7, 2014

PROPERTY-LEVEL OPERATING STATISTICS

PROPERTY-LEVEL OPERATING STATISTICS Page 34

Supplemental Financial Information – Unaudited
August 7, 2014

Property-Level Operating Statistics

Q2 2014/2013

	Hotels sorted by number of rooms	ADR					Occupancy			RevPAR
		For the Three Months Ended June 30,					For the Three Months Ended June 30,			For the Three Months Ended June 30,
		2014		2013		Variance	2014	2013	Variance	2014		2013		Variance
1	Hilton San Diego Bayfront	$	221.12	$	209.31	5.6%	88.4%	86.2%	2.6%	$	195.47	$	180.43	8.3%
2	Boston Park Plaza (1)	198.58		183.11		8.4%	94.8%	94.1%	0.7%	188.25		172.31		9.3%
3	Renaissance Washington DC	206.55		233.11		-11.4%	86.6%	86.1%	0.6%	178.87		200.71		-10.9%
4	Hyatt Regency San Francisco (1) (2)	263.88		239.36		10.2%	85.1%	92.9%	-8.4%	224.56		222.37		1.0%
5	Renaissance Orlando at SeaWorld ®	146.55		140.40		4.4%	78.3%	78.7%	-0.5%	114.75		110.49		3.8%
6	Renaissance Harborplace	176.31		169.89		3.8%	84.6%	80.4%	5.2%	149.16		136.59		9.2%
7	Marriott Wailea (1)	249.21		252.48		-1.3%	77.3%	75.7%	2.1%	192.64		191.13		0.8%
8	Renaissance Los Angeles Airport	129.81		116.27		11.6%	90.7%	87.0%	4.3%	117.74		101.15		16.4%
9	JW Marriott New Orleans	194.11		186.01		4.4%	82.9%	79.3%	4.5%	160.92		147.51		9.1%
10	Hilton North Houston	116.16		104.80		10.8%	86.2%	86.8%	-0.7%	100.13		90.97		10.1%
11	Doubletree Guest Suites Times Square	369.96		382.40		-3.3%	98.1%	97.8%	0.3%	362.93		373.99		-3.0%
12	Marriott Quincy	157.90		152.18		3.8%	86.7%	79.7%	8.8%	136.90		121.29		12.9%
13	Hilton Times Square (2)	335.83		331.71		1.2%	99.8%	96.9%	3.0%	335.16		321.43		4.3%
14	Fairmont Newport Beach	150.97		141.35		6.8%	82.0%	77.7%	5.5%	123.80		109.83		12.7%
15	Hyatt Chicago Magnificent Mile (2)	224.14		211.47		6.0%	79.3%	64.5%	22.9%	177.74		136.40		30.3%
16	Marriott Boston Long Wharf	320.60		295.83		8.4%	91.1%	89.2%	2.1%	292.07		263.88		10.7%
17	Hyatt Regency Newport Beach (2)	161.68		144.34		12.0%	84.3%	77.1%	9.3%	136.30		111.29		22.5%
18	Marriott Tysons Corner	147.51		161.47		-8.6%	85.8%	73.0%	17.5%	126.56		117.87		7.4%
19	Marriott Houston	121.05		109.40		10.6%	82.3%	83.3%	-1.2%	99.62		91.13		9.3%
20	Renaissance Long Beach	150.11		151.75		-1.1%	81.6%	80.0%	2.0%	122.49		121.40		0.9%
21	Embassy Suites Chicago	228.08		212.58		7.3%	92.6%	93.0%	-0.4%	211.20		197.70		6.8%
22	Hilton Garden Inn Chicago Downtown/Magnificent Mile	198.81		198.11		0.4%	89.4%	92.1%	-2.9%	177.74		182.46		-2.6%
23	Renaissance Westchester (2)	144.75		143.42		0.9%	84.5%	65.7%	28.6%	122.31		94.23		29.8%
24	Embassy Suites La Jolla	170.54		158.74		7.4%	87.2%	86.5%	0.8%	148.71		137.31		8.3%
25	Marriott Philadelphia	170.74		175.57		-2.8%	79.4%	78.6%	1.0%	135.57		138.00		-1.8%
26	Hilton New Orleans St. Charles (1)	166.52		159.03		4.7%	81.6%	81.9%	-0.4%	135.88		130.25		4.3%
27	Marriott Portland	180.84		164.33		10.0%	87.9%	89.7%	-2.0%	158.96		147.40		7.8%
28	Sheraton Cerritos	133.81		120.09		11.4%	89.9%	90.3%	-0.4%	120.30		108.44		10.9%
29	Marriott Park City	107.36		103.20		4.0%	48.3%	49.5%	-2.4%	51.85		51.08		1.5%
30	Courtyard by Marriott Los Angeles	152.66		142.89		6.8%	97.1%	96.5%	0.6%	148.23		137.89		7.5%
	Pro Forma Comparable Portfolio (1)	$	199.99	$	193.72	3.2%	86.2%	84.1%	2.5%	$	172.39	$	162.92	5.8%
	Comparable Portfolio (3)	$	198.26	$	191.63	3.5%	86.6%	84.4%	2.6%	$	171.69	$	161.74	6.2%

(1)	Pro Forma Comparable Portfolio includes all 29 hotels held for investment by the Company as of June 30, 2014, plus the Marriott Wailea acquired on July 17, 2014. Includes prior ownership results for the Hilton New Orleans St. Charles acquired on May 1, 2013, the Boston Park Plaza acquired on July 2, 2013, the Hyatt Regency San Francisco acquired on December 2, 2013, and the Marriott Wailea.
(2)	Operating statistics for the second quarter of 2014 are impacted by a major room and public space renovation at the Hyatt Regency San Francisco. Operating statistics for the second quarter of 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.
(3)	Comparable Portfolio includes the Pro Forma Comparable Portfolio, minus the Marriott Wailea acquired on July 17, 2014.

PROPERTY-LEVEL OPERATING STATISTICS Page 35

Supplemental Financial Information – Unaudited
August 7, 2014

Property-Level Operating Statistics

YTD 2014/2013

	Hotels sorted by number of rooms	ADR					Occupancy			RevPAR
		For the Six Months Ended June 30,					For the Six Months Ended June 30,			For the Six Months Ended June 30,
		2014		2013		Variance	2014	2013	Variance	2014		2013		Variance
1	Hilton San Diego Bayfront	$	218.14	$	207.49	5.1%	88.6%	83.4%	6.2%	$	193.27	$	173.05	11.7%
2	Boston Park Plaza (1)	164.87		159.88		3.1%	84.0%	79.4%	5.8%	138.49		126.94		9.1%
3	Renaissance Washington DC	210.04		224.97		-6.6%	81.6%	79.8%	2.3%	171.39		179.53		-4.5%
4	Hyatt Regency San Francisco (1) (2)	261.24		236.54		10.4%	77.4%	84.4%	-8.3%	202.20		199.64		1.3%
5	Renaissance Orlando at SeaWorld ®	157.58		150.28		4.9%	79.8%	80.4%	-0.7%	125.75		120.83		4.1%
6	Renaissance Harborplace	165.40		159.97		3.4%	72.2%	70.9%	1.8%	119.42		113.42		5.3%
7	Marriott Wailea (1)	265.68		265.29		0.1%	85.7%	84.8%	1.1%	227.69		224.97		1.2%
8	Renaissance Los Angeles Airport	127.08		114.85		10.6%	91.4%	87.5%	4.5%	116.15		100.49		15.6%
9	JW Marriott New Orleans	204.95		198.96		3.0%	82.2%	82.3%	-0.1%	168.47		163.74		2.9%
10	Hilton North Houston	117.49		102.98		14.1%	85.6%	87.3%	-1.9%	100.57		89.90		11.9%
11	Doubletree Guest Suites Times Square	315.78		328.18		-3.8%	96.4%	97.0%	-0.6%	304.41		318.33		-4.4%
12	Marriott Quincy	151.33		148.53		1.9%	74.3%	69.5%	6.9%	112.44		103.23		8.9%
13	Hilton Times Square (2)	290.57		300.83		-3.4%	99.5%	81.1%	22.7%	289.12		243.97		18.5%
14	Fairmont Newport Beach	149.87		141.55		5.9%	80.8%	74.6%	8.3%	121.09		105.60		14.7%
15	Hyatt Chicago Magnificent Mile (2)	190.71		167.76		13.7%	64.7%	56.8%	13.9%	123.39		95.29		29.5%
16	Marriott Boston Long Wharf	274.61		254.86		7.7%	85.6%	84.0%	1.9%	235.07		214.08		9.8%
17	Hyatt Regency Newport Beach (2)	155.48		137.74		12.9%	84.7%	67.3%	25.9%	131.69		92.70		42.1%
18	Marriott Tysons Corner	148.58		163.59		-9.2%	78.4%	65.5%	19.7%	116.49		107.15		8.7%
19	Marriott Houston	120.89		106.82		13.2%	81.5%	83.1%	-1.9%	98.53		88.77		11.0%
20	Renaissance Long Beach (2)	149.93		151.06		-0.7%	74.3%	78.3%	-5.1%	111.40		118.28		-5.8%
21	Embassy Suites Chicago	185.64		182.61		1.7%	84.9%	82.8%	2.5%	157.61		151.20		4.2%
22	Hilton Garden Inn Chicago Downtown/Magnificent Mile (2)	166.64		165.92		0.4%	72.9%	82.0%	-11.1%	121.48		136.05		-10.7%
23	Renaissance Westchester (2)	141.97		138.43		2.6%	75.5%	56.5%	33.6%	107.19		78.21		37.0%
24	Embassy Suites La Jolla	166.54		159.89		4.2%	85.4%	83.7%	2.0%	142.23		133.83		6.3%
25	Marriott Philadelphia	165.74		169.02		-1.9%	73.1%	69.0%	5.9%	121.16		116.62		3.9%
26	Hilton New Orleans St. Charles (1)	178.35		168.38		5.9%	80.9%	83.4%	-3.0%	144.29		140.43		2.7%
27	Marriott Portland	166.18		152.76		8.8%	84.7%	79.5%	6.5%	140.75		121.44		15.9%
28	Sheraton Cerritos	129.56		118.69		9.2%	91.3%	91.4%	-0.1%	118.29		108.48		9.0%
29	Marriott Park City	179.06		173.09		3.4%	65.5%	66.0%	-0.8%	117.28		114.24		2.7%
30	Courtyard by Marriott Los Angeles	151.87		142.39		6.7%	97.3%	95.5%	1.9%	147.77		135.98		8.7%
	Pro Forma Comparable Portfolio (1)	$	190.39	$	184.68	3.1%	82.3%	79.3%	3.8%	$	156.69	$	146.45	7.0%
	Pro Forma Comparable Portfolio - Marriott Adjusted (3)	$	190.39	$	184.94	2.9%	82.3%	79.3%	3.8%	$	156.69	$	146.66	6.8%
	Comparable Portfolio (4)	$	187.29	$	181.28	3.3%	82.2%	79.1%	3.9%	$	153.95	$	143.39	7.4%
	Comparable Portfolio - Marriott Adjusted (3)	$	187.29	$	181.53	3.2%	82.2%	79.1%	3.9%	$	153.95	$	143.59	7.2%

(1)	Pro Forma Comparable Portfolio includes all 29 hotels held for investment by the Company as of June 30, 2014, plus the Marriott Wailea acquired on July 17, 2014. Includes prior ownership results for the Hilton New Orleans St. Charles acquired on May 1, 2013, the Boston Park Plaza acquired on July 2, 2013, the Hyatt Regency San Francisco acquired on December 2, 2013, and the Marriott Wailea.
(2)	Operating statistics for the first six months of 2014 are impacted by major room and public space renovations at the following hotels: the Hilton Garden Inn Chicago Downtown/Magnificent Mile; the Hyatt Regency San Francisco; and the Renaissance Long Beach. Operating statistics for the first six months of 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.
(3)	Pro Forma Comparable Portfolio Adjusted for Change in Marriott Calendar and Comparable Portfolio Adjusted for Change in Marriott Calendar include the effects of removing three additional days (December 29, 2012 through December 31, 2012) from Marriott’s fiscal 2013 calendar for the Company’s ten Marriott-managed hotels.
(4)	Comparable Portfolio includes the Pro Forma Comparable Portfolio, minus the Marriott Wailea acquired on July 17, 2014.

PROPERTY-LEVEL OPERATING STATISTICS Page 36  

Supplemental Financial Information – Unaudited
August 7, 2014

OPERATING STATISTICS BY BRAND & GEOGRAPHY

OPERATING STATISTICS BY BRAND & GEOGRAPHY Page 37  

Supplemental Financial Information – Unaudited
August 7, 2014

Operating Statistics by Brand

Q2 & YTD 2014/2013

		For the Three Months Ended June 30,
		2014					2013
	# of Hotels	Occ	ADR		RevPAR		Occ	ADR		RevPAR		RevPAR Change
Marriott (1)	16	83.4%	$	178.11	$	148.54	80.2%	$	176.56	$	141.60	4.9%
Hilton (2)	8	90.6%	$	234.27	$	212.25	89.9%	$	226.74	$	203.84	4.1%
Hyatt (3)	3	83.4%	$	228.33	$	190.43	81.7%	$	211.29	$	172.62	10.3%
Other (4)	3	90.9%	$	179.72	$	163.37	89.4%	$	166.13	$	148.52	10.0%
Pro Forma Comparable Portfolio (5)	30	86.2%	$	199.99	$	172.39	84.1%	$	193.72	$	162.92	5.8%
Comparable Portfolio (6)	29	86.6%	$	198.26	$	171.69	84.4%	$	191.63	$	161.74	6.2%

		For the Six Months Ended June 30,
		2014					2013
	# of Hotels	Occ	ADR		RevPAR		Occ	ADR		RevPAR		RevPAR Change
Marriott (1)	16	80.2%	$	178.35	$	143.04	77.5%	$	175.62	$	136.11	5.1%
Hilton (2)	8	87.9%	$	214.96	$	188.95	85.1%	$	208.52	$	177.45	6.5%
Hyatt (3)	3	76.0%	$	216.31	$	164.40	73.0%	$	200.11	$	146.08	12.5%
Other (4)	3	84.0%	$	156.53	$	131.49	79.6%	$	149.77	$	119.22	10.3%
Pro Forma Comparable Portfolio (5)	30	82.3%	$	190.39	$	156.69	79.3%	$	184.68	$	146.45	7.0%
Pro Forma Comparable Portfolio Adjusted for Change in Marriott Calendar (7)	30	82.3%	$	190.39	$	156.69	79.3%	$	184.94	$	146.66	6.8%
Comparable Portfolio (6)	29	82.2%	$	187.29	$	153.95	79.1%	$	181.28	$	143.39	7.4%
Comparable Portfolio Adjusted for Change in Marriott Calendar (7)	29	82.2%	$	187.29	$	153.95	79.1%	$	181.53	$	143.59	7.2%

(1)	Marriott includes prior ownership results for the Marriott Wailea acquired on July 17, 2014.
(2)	Hilton includes prior ownership results for the Hilton New Orleans St. Charles acquired on May 1, 2013.
(3)	Hyatt includes prior ownership results for the Hyatt Regency San Francisco acquired on December 2, 2013.
(4)	Other includes the Fairmont Newport Beach, the Sheraton Cerritos and the Boston Park Plaza. Includes prior ownership results for the Boston Park Plaza acquired on July 2, 2013.
(5)	Pro Forma Comparable Portfolio includes all 29 hotels held for investment by the Company as of June 30, 2014, plus the Marriott Wailea acquired on July 17, 2014. Includes prior ownership results for the Hilton New Orleans St. Charles acquired on May 1, 2013, the Boston Park Plaza acquired on July 2, 2013, the Hyatt Regency San Francisco acquired on December 2, 2013, and the Marriott Wailea.
(6)	Comparable Portfolio includes the Pro Forma Comparable Portfolio, minus the Marriott Wailea acquired on July 17, 2014.
(7)	Pro Forma Comparable Portfolio Adjusted for Change in Marriott Calendar and Comparable Portfolio Adjusted for Change in Marriott Calendar include the effects of removing three additional days (December 29, 2012 through December 31, 2012) from Marriott’s fiscal 2013 calendar for the Company’s ten Marriott-managed hotels.

OPERATING STATISTICS BY BRAND & GEOGRAPHY Page 38  

Supplemental Financial Information – Unaudited
August 7, 2014

Pro Forma Comparable Portfolio Property-Level Trailing 12 Month EBITDA Contribution
by Brand

Note: Includes 30 hotel Pro Forma Comparable Portfolio.

OPERATING STATISTICS BY BRAND & GEOGRAPHY Page 39  

Supplemental Financial Information – Unaudited August 7, 2014

Operating Statistics by Region
Q2 & YTD 2014/2013

		For the Three Months Ended June 30,
		2014					2013
	# of Hotels	Occ	ADR		RevPAR		Occ	ADR		RevPAR		RevPAR Change
California (1)	9	86.8%	$	189.24	$	164.26	86.0%	$	177.33	$	152.50	7.7%
Other West (2)	5	78.9%	$	164.32	$	129.65	79.2%	$	155.96	$	123.52	5.0%
Midwest	3	86.7%	$	217.29	$	188.39	82.3%	$	207.20	$	170.53	10.5%
East (3)	13	87.8%	$	212.76	$	186.80	84.5%	$	211.96	$	179.11	4.3%
Pro Forma Comparable Portfolio (4)	30	86.2%	$	199.99	$	172.39	84.1%	$	193.72	$	162.92	5.8%
Comparable Portfolio (5)	29	86.6%	$	198.26	$	171.69	84.4%	$	191.63	$	161.74	6.2%
		For the Six Months Ended June 30,
		2014					2013
	# of Hotels	Occ	ADR		RevPAR		Occ	ADR		RevPAR		RevPAR Change
California (1)	9	84.8%	$	185.46	$	157.27	82.2%	$	174.55	$	143.48	9.6%
Other West (2)	5	82.5%	$	175.05	$	144.42	82.4%	$	165.01	$	135.97	6.2%
Midwest	3	73.8%	$	181.39	$	133.87	73.1%	$	172.54	$	126.13	6.1%
East (3)	13	82.0%	$	199.25	$	163.39	77.6%	$	199.10	$	154.50	5.8%
Pro Forma Comparable Portfolio (4)	30	82.3%	$	190.39	$	156.69	79.3%	$	184.68	$	146.45	7.0%
Pro Forma Comparable Portfolio Adjusted for Change in Marriott Calendar (6)	30	82.3%	$	190.39	$	156.69	79.3%	$	184.94	$	146.66	6.8%
Comparable Portfolio (5)	29	82.2%	$	187.29	$	153.95	79.1%	$	181.28	$	143.39	7.4%
Comparable Portfolio Adjusted for Change in Marriott Calendar (6)	29	82.2%	$	187.29	$	153.95	79.1%	$	181.53	$	143.59	7.2%

(1)	California includes prior ownership results for the Hyatt Regency San Francisco acquired on December 2, 2013.
(2)	Other West includes prior ownership results for the Marriott Wailea acquired on July 17, 2014.
(3)	East includes prior ownership results for the Hilton New Orleans St. Charles acquired on May 1, 2013, and the Boston Park Plaza acquired on July 2, 2013.
(4)	Pro Forma Comparable Portfolio includes all 29 hotels held for investment by the Company as of June 30, 2014, plus the Marriott Wailea acquired on July 17, 2014. Includes prior ownership results for the Hilton New Orleans St. Charles acquired on May 1, 2013, the Boston Park Plaza acquired on July 2, 2013, the Hyatt Regency San Francisco acquired on December 2, 2013, and the Marriott Wailea.
(5)	Comparable Portfolio includes the Pro Forma Comparable Portfolio, minus the Marriott Wailea acquired on July 17, 2014.
(6)	Pro Forma Comparable Portfolio Adjusted for Change in Marriott Calendar and Comparable Portfolio Adjusted for Change in Marriott Calendar include the effects of removing three additional days (December 29, 2012 through December 31, 2012) from Marriott’s fiscal 2013 calendar for the Company’s ten Marriott-managed hotels.

OPERATING STATISTICS BY BRAND & GEOGRAPHY Page 40

Supplemental Financial Information – Unaudited August 7, 2014

PROPERTY-LEVEL EBITDA & EBITDA MARGINS

PROPERTY-LEVEL EBITDA & EBITDA MARGINS Page 41

Supplemental Financial Information – Unaudited August 7, 2014  

Property-Level EBITDA

Q2 & YTD 2014/2013

	Hotels sorted by number of rooms		For the Three Months Ended June 30,								For the Six Months Ended June 30,
	(In thousands)		2014			2013					2014		2013
			Hotel EBITDA (2)			Hotel EBITDA (2)			% Change		Hotel EBITDA (2)		Hotel EBITDA (2)			% Change
1	Hilton San Diego Bayfront (1) (3)		$	12,686		$	11,351		12	%	$	27,589	$	21,045		31	%
2	Boston Park Plaza (5)		9,207			8,410			9	%	8,371		7,788			7	%
3	Renaissance Washington DC		6,943			8,735			-21	%	12,156		14,389			-16	%
4	Hyatt Regency San Francisco (3) (5)		5,715			5,593			2	%	7,189		7,725			-7	%
5	Renaissance Orlando at SeaWorld ®		5,231			4,036			30	%	12,242		9,874			24	%
6	Renaissance Harborplace		4,631			3,968			17	%	5,943		5,071			17	%
7	Marriott Wailea (5)		3,939			3,946			0	%	10,760		10,995			-2	%
8	Renaissance Los Angeles Airport		1,790			1,207			48	%	3,502		2,471			42	%
9	JW Marriott New Orleans		3,625			3,013			20	%	7,859		7,532			4	%
10	Hilton North Houston		1,582			1,151			37	%	3,487		2,427			44	%
11	Doubletree Guest Suites Times Square (1)		6,442			6,533			-1	%	8,365		8,999			-7	%
12	Marriott Quincy (4)		3,118			2,960			5	%	3,811		3,812			0	%
13	Hilton Times Square (4)		5,233			4,967			5	%	7,017		4,870			44	%
14	Fairmont Newport Beach (3)		1,877			1,476			27	%	3,635		2,563			42	%
15	Hyatt Chicago Magnificent Mile (4)		2,863			724			295	%	1,556		(1,175		)	232	%
16	Marriott Boston Long Wharf		6,529			5,524			18	%	8,878		7,933			12	%
17	Hyatt Regency Newport Beach (3) (4)		2,119			1,472			44	%	3,810		1,227			211	%
18	Marriott Tysons Corner		2,004			1,930			4	%	3,555		3,238			10	%
19	Marriott Houston		1,138			1,037			10	%	2,446		1,913			28	%
20	Renaissance Long Beach (3)		1,674			1,824			-8	%	2,567		3,418			-25	%
21	Embassy Suites Chicago (3) (4)		4,007			3,254			23	%	4,622		4,041			14	%
22	Hilton Garden Inn Chicago Downtown/Magnificent Mile (3) (4)		3,028			2,836			7	%	2,687		3,305			-19	%
23	Renaissance Westchester (4)		1,202			582			107	%	1,375		(396		)	447	%
24	Embassy Suites La Jolla		2,300			2,265			2	%	4,253		4,127			3	%
25	Marriott Philadelphia		1,711			1,790			-4	%	2,301		2,505			-8	%
26	Hilton New Orleans St. Charles (5)		1,515			1,328			14	%	3,255		2,763			18	%
27	Marriott Portland		1,999			1,785			12	%	3,337		2,645			26	%
28	Sheraton Cerritos		1,003			870			15	%	1,840		1,758			5	%
29	Marriott Park City		(157		)	(132		)	-19	%	1,690		1,715			-1	%
30	Courtyard by Marriott Los Angeles (3)		1,039			914			14	%	2,027		1,772			14	%
	Pro Forma Comparable Portfolio (5)		$	105,993		$	95,349		11	%	$	172,125	$	150,350		14	%
	Comparable Portfolio (6)		$	102,054		$	91,403		12	%	$	161,365	$	139,355		16	%
	(1)	Reflects 100% ownership.
	(2)	Reconciliations to Net Income (Loss) provided on pages 47, 48, 50 and 51.
	(3)	Hotel EBITDA for the second quarter of 2014 is impacted by a major room and public space renovation at the Hyatt Regency San Francisco. Hotel EBITDA for the second quarter of 2014 is also impacted by a total of $0.4 million in property tax credits (assessments) received at the following hotels: Courtyard by Marriott Los Angeles $(7,000); Embassy Suites Chicago $162,000; Hilton Garden Inn Chicago Downtown/Magnificent Mile $195,000; and Hyatt Regency Newport Beach $3,000. Hotel EBITDA for the first six months of 2014 is impacted by major room and public space renovations at the following hotels: the Hilton Garden Inn Chicago Downtown/Magnificent Mile; the Hyatt Regency San Francisco; and the Renaissance Long Beach. Hotel EBITDA for the first six months of 2014 is also impacted by a total of $3.2 million in property tax credits (assessments) net of appeal fees as applicable received at the following hotels: Courtyard by Marriott Los Angeles $(7,000); Embassy Suites Chicago $174,000; Fairmont Newport Beach $83,000; Hilton Garden Inn Chicago Downtown/Magnificent Mile $195,000; Hilton San Diego Bayfront $2.8 million; and Hyatt Regency Newport Beach $3,000.
	(4)	Hotel EBITDA for both the second quarter and first six months 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 both the second quarter and first six months 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.
	(5)	Pro Forma Comparable Portfolio includes all 29 hotels held for investment by the Company as of June 30, 2014, plus the Marriott Wailea acquired on July 17, 2014. Includes the Company’s ownership results and prior ownership results for the Hilton New Orleans St. Charles acquired on May 1, 2013, the Boston Park Plaza acquired on July 2, 2013, the Hyatt Regency San Francisco acquired on December 2, 2013, and the Marriott Wailea. 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 $8.7 million and $8.3 million for the three and six months ended June 30, 2013, respectively.
	(6)	Comparable Portfolio includes the Pro Forma Comparable Portfolio, minus the Marriott Wailea.

PROPERTY-LEVEL EBITDA & EBITDA MARGINS Page 42

Supplemental Financial Information – Unaudited August 7, 2014

Property-Level EBITDA Margins
Q2 & YTD 2014/2013

	Hotels sorted by number of rooms		For the Three Months Ended June 30,					For the Six Months Ended June 30,
			2014		2013			2014		2013
			Hotel EBITDA		Hotel EBITDA		Change in	Hotel EBITDA		Hotel EBITDA		Change in
			Margin		Margin		bps	Margin		Margin		bps
1	Hilton San Diego Bayfront (1) (2)		38.5	%	37.1	%	140  bps	42.1	%	35.3	%	680  bps
2	Boston Park Plaza (4)		39.4	%	37.9	%	150  bps	24.2	%	23.6	%	60  bps
3	Renaissance Washington DC		33.0	%	37.6	%	(460) bps	30.5	%	33.6	%	(310) bps
4	Hyatt Regency San Francisco (2) (4)		24.8	%	24.1	%	70  bps	17.7	%	18.5	%	(80) bps
5	Renaissance Orlando at SeaWorld ®		33.3	%	28.9	%	440  bps	35.1	%	31.6	%	350  bps
6	Renaissance Harborplace		35.4	%	33.8	%	160  bps	27.9	%	25.3	%	260  bps
7	Marriott Wailea (4)		29.2	%	30.6	%	(140) bps	34.8	%	36.9	%	(210) bps
8	Renaissance Los Angeles Airport		24.7	%	19.6	%	510  bps	24.2	%	19.8	%	440  bps
9	JW Marriott New Orleans		37.6	%	35.9	%	170  bps	39.7	%	39.3	%	40  bps
10	Hilton North Houston		24.2	%	20.0	%	420  bps	25.8	%	20.8	%	500  bps
11	Doubletree Guest Suites Times Square (1)		36.0	%	36.4	%	(40) bps	27.5	%	29.0	%	(150) bps
12	Marriott Quincy (3)		36.7	%	38.7	%	(200) bps	27.1	%	28.9	%	(180) bps
13	Hilton Times Square (3)		34.3	%	33.8	%	50  bps	26.5	%	21.7	%	480  bps
14	Fairmont Newport Beach (2)		24.7	%	21.4	%	330  bps	24.6	%	19.4	%	520  bps
15	Hyatt Chicago Magnificent Mile (3)		30.5	%	11.0	%	1,950  bps	11.7	%	-12.6	%	2,430  bps
16	Marriott Boston Long Wharf		43.7	%	41.2	%	250  bps	35.7	%	34.0	%	170  bps
17	Hyatt Regency Newport Beach (2) (3)		22.3	%	18.8	%	350  bps	21.9	%	9.8	%	1,210  bps
18	Marriott Tysons Corner		34.4	%	35.2	%	(80) bps	32.8	%	31.7	%	110  bps
19	Marriott Houston		24.9	%	25.0	%	(10) bps	26.4	%	23.5	%	290  bps
20	Renaissance Long Beach (2)		28.2	%	30.8	%	(260) bps	23.7	%	29.4	%	(570) bps
21	Embassy Suites Chicago (2) (3)		48.4	%	41.9	%	650  bps	37.0	%	34.1	%	290  bps
22	Hilton Garden Inn Chicago Downtown/Magnificent Mile (2) (3)		47.1	%	43.6	%	350  bps	30.5	%	33.8	%	(330) bps
23	Renaissance Westchester (3)		19.8	%	12.5	%	730  bps	13.4	%	-5.3	%	1,870  bps
24	Embassy Suites La Jolla		42.3	%	44.5	%	(220) bps	41.3	%	42.1	%	(80) bps
25	Marriott Philadelphia		33.0	%	33.5	%	(50) bps	24.7	%	26.4	%	(170) bps
26	Hilton New Orleans St. Charles (4)		42.7	%	40.3	%	240  bps	43.6	%	39.6	%	400  bps
27	Marriott Portland		46.8	%	45.2	%	160  bps	43.6	%	40.1	%	350  bps
28	Sheraton Cerritos		29.6	%	27.5	%	210  bps	28.2	%	27.6	%	60  bps
29	Marriott Park City		-11.6	%	-10.0	%	(160) bps	29.9	%	30.5	%	(60) bps
30	Courtyard by Marriott Los Angeles (2)		34.8	%	32.8	%	200  bps	34.4	%	32.6	%	180  bps
	Pro Forma Comparable Portfolio (4)		33.9	%	32.6	%	130bps	30.1	%	28.1	%	200bps
	Adjusted Pro Forma Comparable Portfolio (5)		33.8	%	32.6	%	120bps	29.5	%	28.1	%	140bps
	Comparable Portfolio (6)		34.1	%	32.7	%	140bps	29.8	%	27.5	%	230bps
	Adjusted Comparable Portfolio (7)		34.0	%	32.7	%	130bps	29.2	%	27.6	%	160bps
	(1)	Reflects 100% ownership.
	(2)	Hotel EBITDA for the second quarter of 2014 is impacted by a major room and public space renovation at the Hyatt Regency San Francisco. Hotel EBITDA for the second quarter of 2014 is also impacted by a total of $0.4 million in property tax credits (assessments) received at the following hotels: Courtyard by Marriott Los Angeles $(7,000); Embassy Suites Chicago $162,000; Hilton Garden Inn Chicago Downtown/Magnificent Mile $195,000; and Hyatt Regency Newport Beach $3,000. Hotel EBITDA for the first six months of 2014 is impacted by major room and public space renovations at the following hotels: Hilton Garden Inn Chicago Downtown/Magnificent Mile; Hyatt Regency San Francisco; and Renaissance Long Beach. Hotel EBITDA for the first six months of 2014 is also impacted by a total of $3.2 million in property tax credits (assessments) net of appeal fees as applicable received at the following hotels: Courtyard by Marriott Los Angeles $(7,000); Embassy Suites Chicago $174,000; Fairmont Newport Beach $83,000; Hilton Garden Inn Chicago Downtown/Magnificent Mile $195,000; Hilton San Diego Bayfront $2.8 million; and Hyatt Regency Newport Beach $3,000.
	(3)	Hotel EBITDA for both the second quarter and first six months 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 both the second quarter and first six months 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.
	(4)	Pro Forma Comparable Portfolio includes all 29 hotels held for investment by the Company as of June 30, 2014, plus the Marriott Wailea acquired on July 17, 2014. Includes the Company’s ownership results, 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, the Hyatt Regency San Francisco acquired on December 2, 2013, and the Marriott Wailea. 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 margin would have been 39.4% and 25.1% for the three and six months ended June 30, 2013, respectively.
	(5)	Adjusted Pro Forma Comparable Portfolio represents the 30 hotel Pro Forma Comparable Portfolio adjusted to exclude the non-current property tax related items noted in Footnotes 2 and 3 above. Excluding these non-current year property tax items, Pro Forma Comparable Portfolio EBITDA margin would have been 33.8% and 32.6% for the three months ended June 30, 2014 and 2013, respectively, and 29.5% and 28.1% for the six months ended June 30, 2014 and 2013, respectively.
	(6)	Comparable Portfolio includes the Pro Forma Comparable Portfolio, minus the Marriott Wailea.
	(7)	Adjusted Comparable Portfolio represents the 29 hotel Comparable Portfolio adjusted to exclude the non-current property tax related items noted in Footnotes 2 and 3 above. Excluding these non-current year property tax items, Comparable Portfolio EBITDA margin would have been 34.0% and 32.7% for the three months ended June 30, 2014 and 2013, respectively, and 29.2% and 27.6% for the six months ended June 30, 2014 and 2013, respectively.

PROPERTY-LEVEL EBITDA & EBITDA MARGINS Page 43

Supplemental Financial Information – Unaudited August 7, 2014

Property-Level EBITDA Reconciliation

Q1 2014

	Hotels sorted by number of rooms	For the Three Months Ended March 31, 2014
	(In thousands)						Plus:		Plus:		Plus:		Equals:			Hotel
		Total		Net Income /			Other						Hotel			EBITDA
		Revenues		(Loss)			Adjustments (2)		Depreciation		Interest Expense		EBITDA			Margins
1	Hilton San Diego Bayfront (1) (3)	$	32,557	$	8,902		$	450	$	3,285	$	2,266	$	14,903		45.8	%
2	Boston Park Plaza	11,172		(5,005		)	-		2,856		1,313		(836		)	-7.5	%
3	Renaissance Washington DC	18,882		909			-		2,405		1,899		5,213			27.6	%
4	Hyatt Regency San Francisco (3)	17,480		(1,262		)	-		2,736		-		1,474			8.4	%
5	Renaissance Orlando at SeaWorld ®	19,116		3,753			-		2,180		1,078		7,011			36.7	%
6	Renaissance Harborplace	8,246		(1,584		)	-		1,697		1,199		1,312			15.9	%
7	Marriott Wailea (4)	17,415		4,691			-		2,130		-		6,821			39.2	%
8	Renaissance Los Angeles Airport	7,224		999			-		713		-		1,712			23.7	%
9	JW Marriott New Orleans	10,136		2,456			1		1,339		438		4,234			41.8	%
10	Hilton North Houston	6,965		526			-		920		459		1,905			27.4	%
11	Doubletree Guest Suites Times Square (1)	12,468		(2,170		)	997		1,359		1,737		1,923			15.4	%
12	Marriott Quincy	5,555		(457		)	-		1,150		-		693			12.5	%
13	Hilton Times Square	11,206		(2,079		)	92		2,551		1,220		1,784			15.9	%
14	Fairmont Newport Beach (3)	7,172		597			-		1,161		-		1,758			24.5	%
15	Hyatt Chicago Magnificent Mile	3,856		(2,910		)	-		1,603		-		(1,307		)	-33.9	%
16	Marriott Boston Long Wharf	9,928		(2,223		)	-		2,113		2,459		2,349			23.7	%
17	Hyatt Regency Newport Beach	7,896		829			-		862		-		1,691			21.4	%
18	Marriott Tysons Corner	5,025		166			-		818		567		1,551			30.9	%
19	Marriott Houston	4,686		455			-		562		291		1,308			27.9	%
20	Renaissance Long Beach (3)	4,898		188			-		705		-		893			18.2	%
21	Embassy Suites Chicago (3)	4,202		(1,314		)	-		934		995		615			14.6	%
22	Hilton Garden Inn Chicago Downtown/Magnificent Mile (3)	2,376		(1,353		)	-		1,012		-		(341		)	-14.4	%
23	Renaissance Westchester	4,202		(586		)	-		759		-		173			4.1	%
24	Embassy Suites La Jolla	4,851		(78		)	-		909		1,122		1,953			40.3	%
25	Marriott Philadelphia	4,122		(230		)	-		475		345		590			14.3	%
26	Hilton New Orleans St. Charles	3,926		1,194			-		546		-		1,740			44.3	%
27	Marriott Portland	3,379		923			-		415		-		1,338			39.6	%
28	Sheraton Cerritos	3,127		422			-		415		-		837			26.8	%
29	Marriott Park City	4,298		1,216			-		440		191		1,847			43.0	%
30	Courtyard by Marriott Los Angeles	2,911		682			-		306		-		988			33.9	%
	Pro Forma Comparable Portfolio (4)	259,277		7,657			1,540		39,356		17,579		66,132			25.5	%
	Less: Prior Ownership (5)
	Marriott Wailea	17,415		4,691			-		2,130		-		6,821			39.2	%
	Actual Portfolio (6)	$	241,862	$	2,966		$	1,540	$	37,226	$	17,579	$	59,311		24.5	%
	*Footnotes on page 46

PROPERTY-LEVEL EBITDA & EBITDA MARGINS Page 44  

Supplemental Financial Information – Unaudited August 7, 2014

Property-Level EBITDA Reconciliation

Q1 2013

	Hotels sorted by number of rooms	For the Three Months Ended March 31, 2013
	(In thousands)						Plus:		Plus:		Plus:		Equals:			Hotel
		Total		Net Income /			Other						Hotel			EBITDA
		Revenues		(Loss)			Adjustments (7)		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 (4)	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 (4)	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	Marriott Wailea (4)	16,895		4,919			-		2,130		-		7,049			41.7	%
8	Renaissance Los Angeles Airport	6,334		515			-		749		-		1,264			20.0	%
9	JW Marriott New Orleans	10,755		2,501			1		1,601		416		4,519			42.0	%
10	Hilton North Houston	5,932		(132		)	-		932		476		1,276			21.5	%
11	Doubletree Guest Suites Times Square (1)	13,106		(2,579		)	1,000		2,288		1,757		2,466			18.8	%
12	Marriott Quincy	5,519		(289		)	-		1,141		-		852			15.4	%
13	Hilton Times Square (3)	7,743		(3,867		)	270		2,270		1,230		(97		)	-1.3	%
14	Fairmont Newport Beach	6,302		(187		)	-		1,274		-		1,087			17.2	%
15	Hyatt Chicago Magnificent Mile (3)	2,736		(3,427		)	-		1,528		-		(1,899		)	-69.4	%
16	Marriott Boston Long Wharf	9,891		(2,146		)	-		2,096		2,459		2,409			24.4	%
17	Hyatt Regency Newport Beach (3)	4,724		(867		)	-		622		-		(245		)	-5.2	%
18	Marriott Tysons Corner	4,746		(220		)	-		944		584		1,308			27.6	%
19	Marriott Houston	3,981		2			-		575		299		876			22.0	%
20	Renaissance Long Beach	5,715		993			-		601		-		1,594			27.9	%
21	Embassy Suites Chicago	4,103		(1,084		)	-		855		1,016		787			19.2	%
22	Hilton Garden Inn Chicago Downtown/Magnificent Mile	3,272		(683		)	-		1,152		-		469			14.3	%
23	Renaissance Westchester (3)	2,770		(1,382		)	-		404		-		(978		)	-35.3	%
24	Embassy Suites La Jolla	4,719		(181		)	-		907		1,136		1,862			39.5	%
25	Marriott Philadelphia	4,142		(108		)	-		468		355		715			17.3	%
26	Hilton New Orleans St. Charles (4)	3,679		900			-		535		-		1,435			39.0	%
27	Marriott Portland	2,643		534			-		326		-		860			32.5	%
28	Sheraton Cerritos	3,211		472			-		416		-		888			27.7	%
29	Marriott Park City	4,307		1,282			-		368		197		1,847			42.9	%
30	Courtyard by Marriott Los Angeles	2,655		550			-		308		-		858			32.3	%
	Pro Forma Comparable Portfolio (4)	243,333		(5,473		)	1,721		40,924		17,829		55,001			22.6	%
	Less: Prior Ownership (5)
	Hilton New Orleans St. Charles	3,679		900			-		535		-		1,435			39.0	%
	Boston Park Plaza	10,778		(3,790		)	-		1,849		1,319		(622		)	-5.8	%
	Hyatt Regency San Francisco	18,548		(604		)	-		2,736		-		2,132			11.5	%
	Marriott Wailea	16,895		4,919			-		2,130		-		7,049			41.7	%
	Actual Portfolio (6)	$	193,433	$	(6,898	)	$	1,721	$	33,674	$	16,510	$	45,007		23.3	%
	*Footnotes on page 46

PROPERTY-LEVEL EBITDA & EBITDA MARGINS Page 45  

Supplemental Financial Information – Unaudited August 7, 2014

Property-Level EBITDA Reconciliation

Q1 2014/2013 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, 2014 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 first quarter of 2014 is impacted by major room and public space renovations at the following hotels: the Hilton Garden Inn Chicago Downtown/Magnificent Mile; the Hyatt Regency San Francisco; and the Renaissance Long Beach. Hotel EBITDA for the first quarter of 2014 is also impacted by a total of $2.9 million in property tax credits net of appeal fees received at the following hotels: the Embassy Suites Chicago $12,000; the Fairmont Newport Beach $83,000; and the Hilton San Diego Bayfront $2.8 million. 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.
(4)	Pro Forma Comparable Portfolio includes all 29 hotels held for investment by the Company as of June 30, 2014, plus the Marriott Wailea acquired on July 17, 2014. Includes the Company's ownership results, 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, the Hyatt Regency San Francisco acquired on December 2, 2013, and the Marriott Wailea.
(5)	Prior Ownership for the three months ended March 31, 2014 includes prior ownership results and the Company's pro forma depreciation expense for the Marriott Wailea acquired on July 17, 2014. Prior Ownership for the three months ended March 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, the Hyatt Regency San Francisco acquired on December 2, 2013, and the Marriott Wailea.
(6)	Actual Portfolio for the three months ended March 31, 2014 includes the Company's ownership results for all 29 hotels held for investment by the Company as of June 30, 2014. 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.
(7)	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.

PROPERTY-LEVEL EBITDA & EBITDA MARGINS Page 46

Supplemental Financial Information – Unaudited August 7, 2014  

Property-Level EBITDA Reconciliation

Q2 2014

	Hotels sorted by number of rooms	For the Three Months Ended June 30, 2014
	(In thousands)						Plus:			Plus:		Plus:		Equals:			Hotel
		Total		Net Income /			Other							Hotel			EBITDA
		Revenues		(Loss)			Adjustments (2)			Depreciation		Interest Expense		EBITDA			Margins
1	Hilton San Diego Bayfront (1)	$	32,956	$	6,666		$	451		$	3,294	$	2,276	$	12,686		38.5	%
2	Boston Park Plaza	23,377		5,009			-			2,874		1,324		9,207			39.4	%
3	Renaissance Washington DC	21,008		2,636			-			2,415		1,892		6,943			33.0	%
4	Hyatt Regency San Francisco (3)	23,053		2,865			-			2,850		-		5,715			24.8	%
5	Renaissance Orlando at SeaWorld ®	15,721		1,921			-			2,227		1,083		5,231			33.3	%
6	Renaissance Harborplace	13,075		1,718			-			1,713		1,200		4,631			35.4	%
7	Marriott Wailea (4)	13,469		1,809			-			2,130		-		3,939			29.2	%
8	Renaissance Los Angeles Airport	7,242		1,070			-			720		-		1,790			24.7	%
9	JW Marriott New Orleans	9,637		1,852			(4		)	1,356		422		3,625			37.6	%
10	Hilton North Houston	6,528		195			-			926		461		1,582			24.2	%
11	Doubletree Guest Suites Times Square (1)	17,907		2,243			994			1,496		1,709		6,442			36.0	%
12	Marriott Quincy	8,486		1,991			-			1,127		-		3,118			36.7	%
13	Hilton Times Square	15,273		1,382			89			2,532		1,230		5,233			34.3	%
14	Fairmont Newport Beach	7,589		752			-			1,125		-		1,877			24.7	%
15	Hyatt Chicago Magnificent Mile	9,402		1,318			-			1,545		-		2,863			30.5	%
16	Marriott Boston Long Wharf	14,930		1,943			-			2,100		2,486		6,529			43.7	%
17	Hyatt Regency Newport Beach (3)	9,521		1,267			-			852		-		2,119			22.3	%
18	Marriott Tysons Corner	5,825		611			-			824		569		2,004			34.4	%
19	Marriott Houston	4,572		282			-			565		291		1,138			24.9	%
20	Renaissance Long Beach	5,944		897			-			777		-		1,674			28.2	%
21	Embassy Suites Chicago (3)	8,277		2,076			-			931		1,000		4,007			48.4	%
22	Hilton Garden Inn Chicago Downtown/Magnificent Mile (3)	6,435		1,833			-			1,195		-		3,028			47.1	%
23	Renaissance Westchester	6,070		426			-			776		-		1,202			19.8	%
24	Embassy Suites La Jolla	5,440		310			-			872		1,118		2,300			42.3	%
25	Marriott Philadelphia	5,187		876			-			473		362		1,711			33.0	%
26	Hilton New Orleans St. Charles	3,548		1,081			-			434		-		1,515			42.7	%
27	Marriott Portland	4,267		1,585			-			414		-		1,999			46.8	%
28	Sheraton Cerritos	3,389		585			-			418		-		1,003			29.6	%
29	Marriott Park City	1,355		(790		)	-			442		191		(157		)	-11.6	%
30	Courtyard by Marriott Los Angeles (3)	2,986		735			-			304		-		1,039			34.8	%
	Pro Forma Comparable Portfolio (4)	312,469		47,144			1,530			39,707		17,614		105,993			33.9	%
	Less: Prior Ownership (5)
	Marriott Wailea	13,469		1,809			-			2,130		-		3,939			29.2	%
	Actual Portfolio (6)	299,000		45,335			1,530			37,577		17,614		102,054			34.1	%
	*Footnotes on page 49

PROPERTY-LEVEL EBITDA & EBITDA MARGINS Page 47

Supplemental Financial Information – Unaudited August 7, 2014

Property-Level EBITDA Reconciliation

Q2 2013

	Hotels sorted by number of rooms	For the Three Months Ended June 30, 2013
	(In thousands)						Plus:			Plus:		Plus:		Equals:			Hotel
		Total		Net Income /			Other							Hotel			EBITDA
		Revenues		(Loss)			Adjustments (7)			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 (4)	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 (4)	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	Marriott Wailea (4)	12,898		1,816			-			2,130		-		3,946			30.6	%
8	Renaissance Los Angeles Airport	6,161		454			-			753		-		1,207			19.6	%
9	JW Marriott New Orleans	8,397		1,335			1			1,333		344		3,013			35.9	%
10	Hilton North Houston	5,761		(264		)	-			906		509		1,151			20.0	%
11	Doubletree Guest Suites Times Square (1)	17,958		1,783			997			2,023		1,730		6,533			36.4	%
12	Marriott Quincy (3)	7,654		1,821			-			1,139		-		2,960			38.7	%
13	Hilton Times Square (3)	14,698		1,302			(78		)	2,507		1,236		4,967			33.8	%
14	Fairmont Newport Beach	6,901		232			-			1,244		-		1,476			21.4	%
15	Hyatt Chicago Magnificent Mile (3)	6,573		(799		)	-			1,523		-		724			11.0	%
16	Marriott Boston Long Wharf	13,416		941			-			2,097		2,486		5,524			41.2	%
17	Hyatt Regency Newport Beach (3)	7,819		698			-			774		-		1,472			18.8	%
18	Marriott Tysons Corner	5,484		550			-			794		586		1,930			35.2	%
19	Marriott Houston	4,145		173			-			563		301		1,037			25.0	%
20	Renaissance Long Beach	5,916		1,222			-			602		-		1,824			30.8	%
21	Embassy Suites Chicago (3)	7,760		1,318			-			914		1,022		3,254			41.9	%
22	Hilton Garden Inn Chicago Downtown/Magnificent Mile (3)	6,500		1,682			-			1,154		-		2,836			43.6	%
23	Renaissance Westchester (3)	4,671		7			-			575		-		582			12.5	%
24	Embassy Suites La Jolla	5,091		245			-			888		1,132		2,265			44.5	%
25	Marriott Philadelphia	5,345		968			-			466		356		1,790			33.5	%
26	Hilton New Orleans St. Charles (4)	3,293		793			-			535		-		1,328			40.3	%
27	Marriott Portland	3,946		1,370			-			415		-		1,785			45.2	%
28	Sheraton Cerritos	3,159		459			-			411		-		870			27.5	%
29	Marriott Park City	1,320		(692		)	-			363		197		(132		)	-10.0	%
30	Courtyard by Marriott Los Angeles	2,783		605			-			309		-		914			32.8	%
	Pro Forma Comparable Portfolio (4)	292,603		37,381			1,370			38,723		17,875		95,349			32.6	%
	Less: Prior Ownership (5)
	Hilton New Orleans St. Charles	1,346		448			-			179		-		627			46.6	%
	Boston Park Plaza	22,199		5,233			-			1,849		1,328		8,410			37.9	%
	Hyatt Regency San Francisco	23,210		2,857			-			2,736		-		5,593			24.1	%
	Marriott Wailea	12,898		1,816			-			2,130		-		3,946			30.6	%
	Actual Portfolio (6)	$	232,950	$	27,027		$	1,370		$	31,829	$	16,547	$	76,773		33.0	%
	*Footnotes on page 49

PROPERTY-LEVEL EBITDA & EBITDA MARGINS Page 48

Supplemental Financial Information – Unaudited August 7, 2014

Property-Level EBITDA Reconciliation

Q2 2014/2013 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, 2014 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 second quarter of 2014 is impacted by a major room and public space renovation at the Hyatt Regency San Francisco. Hotel EBITDA for the second quarter of 2014 is also impacted by a total of $0.4 million in property tax credits (assessments) received at the following hotels: Courtyard by Marriott Los Angeles $(7,000); Embassy Suites Chicago $162,000; Hilton Garden Inn Chicago Downtown/Magnificent Mile $195,000; and Hyatt Regency Newport Beach $3,000. 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.
(4)	Pro Forma Comparable Portfolio includes all 29 hotels held for investment by the Company as of June 30, 2014, plus the Marriott Wailea acquired on July 17, 2014. Includes the Company’s ownership results, 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, the Hyatt Regency San Francisco acquired on December 2, 2013, and the Marriott Wailea.
(5)	Prior Ownership for the three months ended June 30, 2014 includes prior ownership results and the Company’s pro forma depreciation expense for the Marriott Wailea acquired on July 17, 2014. Prior Ownership for the three months ended June 30, 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, the Hyatt Regency San Francisco acquired on December 2, 2013, and the Marriott Wailea.
(6)	Actual Portfolio for the three months ended June 30, 2014 includes the Company’s ownership results for all 29 hotels held for investment by the Company as of June 30, 2014. 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.
(7)	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.

PROPERTY-LEVEL EBITDA & EBITDA MARGINS Page 49

Supplemental Financial Information – Unaudited August 7, 2014

Property-Level EBITDA Reconciliation

Q2 YTD 2014

	Hotels sorted by number of rooms	For the Six Months Ended June 30, 2014
	(In thousands)						Plus:			Plus:		Plus:		Equals:		Hotel
		Total		Net Income /			Other							Hotel		EBITDA
		Revenues		(Loss)			Adjustments (2)			Depreciation		Interest Expense		EBITDA		Margins
1	Hilton San Diego Bayfront (1) (3)	$	65,513	$	15,568		$	901		$	6,579	$	4,542	$	27,589	42.1	%
2	Boston Park Plaza	34,549		4			-			5,730		2,637		8,371		24.2	%
3	Renaissance Washington DC	39,890		3,545			-			4,820		3,791		12,156		30.5	%
4	Hyatt Regency San Francisco (3)	40,533		1,603			-			5,586		-		7,189		17.7	%
5	Renaissance Orlando at SeaWorld ®	34,837		5,674			-			4,407		2,161		12,242		35.1	%
6	Renaissance Harborplace	21,321		134			-			3,410		2,399		5,943		27.9	%
7	Marriott Wailea (4)	30,884		6,500			-			4,260		-		10,760		34.8	%
8	Renaissance Los Angeles Airport	14,466		2,069			-			1,433		-		3,502		24.2	%
9	JW Marriott New Orleans	19,773		4,308					(3)	2,695		860		7,859		39.7	%
10	Hilton North Houston	13,493		721			-			1,846		920		3,487		25.8	%
11	Doubletree Guest Suites Times Square (1)	30,375		73			1,991			2,855		3,446		8,365		27.5	%
12	Marriott Quincy	14,041		1,534			-			2,277		-		3,811		27.1	%
13	Hilton Times Square	26,479		(697		)	181			5,083		2,450		7,017		26.5	%
14	Fairmont Newport Beach (3)	14,761		1,349			-			2,286		-		3,635		24.6	%
15	Hyatt Chicago Magnificent Mile	13,258		(1,592		)	-			3,148		-		1,556		11.7	%
16	Marriott Boston Long Wharf	24,858		(280		)	-			4,213		4,945		8,878		35.7	%
17	Hyatt Regency Newport Beach (3)	17,417		2,096			-			1,714		-		3,810		21.9	%
18	Marriott Tysons Corner	10,850		777			-			1,642		1,136		3,555		32.8	%
19	Marriott Houston	9,258		737			-			1,127		582		2,446		26.4	%
20	Renaissance Long Beach (3)	10,842		1,085			-			1,482		-		2,567		23.7	%
21	Embassy Suites Chicago (3)	12,479		762			-			1,865		1,995		4,622		37.0	%
22	Hilton Garden Inn Chicago Downtown/Magnificent Mile (3)	8,811		480			-			2,207		-		2,687		30.5	%
23	Renaissance Westchester	10,272		(160		)	-			1,535		-		1,375		13.4	%
24	Embassy Suites La Jolla	10,291		232			-			1,781		2,240		4,253		41.3	%
25	Marriott Philadelphia	9,309		646			-			948		707		2,301		24.7	%
26	Hilton New Orleans St. Charles	7,474		2,275			-			980		-		3,255		43.6	%
27	Marriott Portland	7,646		2,508			-			829		-		3,337		43.6	%
28	Sheraton Cerritos	6,516		1,007			-			833		-		1,840		28.2	%
29	Marriott Park City	5,653		426			-			882		382		1,690		29.9	%
30	Courtyard by Marriott Los Angeles (3)	5,897		1,417			-			610		-		2,027		34.4	%
	Pro Forma Comparable Portfolio (4)	571,746		54,801			3,070			79,063		35,193		172,125		30.1	%
	Less: Prior Ownership (5)
	Marriott Wailea	30,884		6,500			-			4,260		-		10,760		34.8	%
	Actual Portfolio (6)	540,862		48,301			3,070			74,803		35,193		161,365		29.8	%
	*Footnotes on page 52

PROPERTY-LEVEL EBITDA & EBITDA MARGINS Page 50  

Supplemental Financial Information – Unaudited August 7, 2014

Property-Level EBITDA Reconciliation

Q2 YTD 2013

	Hotels sorted by number of rooms	For the Six Months Ended June 30, 2013
	(In thousands)						Plus:		Plus:		Plus:		Equals:			Hotel
		Total		Net Income /			Other						Hotel			EBITDA
		Revenues		(Loss)			Adjustments (7)		Depreciation		Interest Expense		EBITDA			Margins
1	Hilton San Diego Bayfront (1)	$	59,682	$	6,118		$	900	$	9,351	$	4,676	$	21,045		35.3	%
2	Boston Park Plaza (4)	32,977		1,443			-		3,698		2,647		7,788			23.6	%
3	Renaissance Washington DC	42,772		5,572			-		4,964		3,853		14,389			33.6	%
4	Hyatt Regency San Francisco (4)	41,758		2,253			-		5,472		-		7,725			18.5	%
5	Renaissance Orlando at SeaWorld ®	31,212		3,977			-		3,678		2,219		9,874			31.6	%
6	Renaissance Harborplace	20,006		(990		)	-		3,576		2,485		5,071			25.3	%
7	Marriott Wailea (4)	29,793		6,735			-		4,260		-		10,995			36.9	%
8	Renaissance Los Angeles Airport	12,495		969			-		1,502		-		2,471			19.8	%
9	JW Marriott New Orleans	19,152		3,836			2		2,934		760		7,532			39.3	%
10	Hilton North Houston	11,693		(396		)	-		1,838		985		2,427			20.8	%
11	Doubletree Guest Suites Times Square (1)	31,064		(796		)	1,997		4,311		3,487		8,999			29.0	%
12	Marriott Quincy (3)	13,173		1,532			-		2,280		-		3,812			28.9	%
13	Hilton Times Square (3)	22,441		(2,565		)	192		4,777		2,466		4,870			21.7	%
14	Fairmont Newport Beach	13,203		45			-		2,518		-		2,563			19.4	%
15	Hyatt Chicago Magnificent Mile (3)	9,309		(4,226		)	-		3,051		-		(1,175		)	-12.6	%
16	Marriott Boston Long Wharf	23,307		(1,205		)	-		4,193		4,945		7,933			34.0	%
17	Hyatt Regency Newport Beach (3)	12,543		(169		)	-		1,396		-		1,227			9.8	%
18	Marriott Tysons Corner	10,230		330			-		1,738		1,170		3,238			31.7	%
19	Marriott Houston	8,126		175			-		1,138		600		1,913			23.5	%
20	Renaissance Long Beach	11,631		2,215			-		1,203		-		3,418			29.4	%
21	Embassy Suites Chicago (3)	11,863		234			-		1,769		2,038		4,041			34.1	%
22	Hilton Garden Inn Chicago Downtown/Magnificent Mile (3)	9,772		999			-		2,306		-		3,305			33.8	%
23	Renaissance Westchester (3)	7,441		(1,375		)	-		979		-		(396		)	-5.3	%
24	Embassy Suites La Jolla	9,810		64			-		1,795		2,268		4,127			42.1	%
25	Marriott Philadelphia	9,487		860			-		934		711		2,505			26.4	%
26	Hilton New Orleans St. Charles (4)	6,972		1,693			-		1,070		-		2,763			39.6	%
27	Marriott Portland	6,589		1,904			-		741		-		2,645			40.1	%
28	Sheraton Cerritos	6,370		931			-		827		-		1,758			27.6	%
29	Marriott Park City	5,627		590			-		731		394		1,715			30.5	%
30	Courtyard by Marriott Los Angeles	5,438		1,155			-		617		-		1,772			32.6	%
	Pro Forma Comparable Portfolio (4)	535,936		31,908			3,091		79,647		35,704		150,350			28.1	%
	Less: Prior Ownership (5)
	Hilton New Orleans St. Charles	5,025		1,348			-		714		-		2,062			41.0	%
	Boston Park Plaza	32,977		1,443			-		3,698		2,647		7,788			23.6	%
	Hyatt Regency San Francisco	41,758		2,253			-		5,472		-		7,725			18.5	%
	Marriott Wailea	29,793		6,735			-		4,260		-		10,995			36.9	%
	Actual Portfolio (6)	$	426,383	$	20,129		$	3,091	$	65,503	$	33,057	$	121,780		28.6	%
	*Footnotes on page 52

PROPERTY-LEVEL EBITDA & EBITDA MARGINS Page 51  

Supplemental Financial Information – Unaudited August 7, 2014

Property-Level EBITDA Reconciliation

Q2 YTD 2014/2013 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 six months ended June 30, 2014 include: a total of $2.1 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 $1.0 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 six months of 2014 is impacted by major room and public space renovations at the following hotels: the Hilton Garden Inn Chicago Downtown/Magnificent Mile; the Hyatt Regency San Francisco; and the Renaissance Long Beach. Hotel EBITDA for the first six months of 2014 is also impacted by a total of $3.2 million in property tax credits (assessments) net of appeal fees as applicable received at the following hotels: the Courtyard by Marriott Los Angeles $(7,000); the Embassy Suites Chicago $174,000; the Fairmont Newport Beach $83,000; the Hilton Garden Inn Chicago Downtown/Magnificent Mile $195,000; the Hilton San Diego Bayfront $2.8 million; and the Hyatt Regency Newport Beach $3,000. Hotel EBITDA for the first six months 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 first six months 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.
(4)	Pro Forma Comparable Portfolio includes all 29 hotels held for investment by the Company as of June 30, 2014, plus the Marriott Wailea acquired on July 17, 2014. Includes the Company’s ownership results, 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, the Hyatt Regency San Francisco acquired on December 2, 2013, and the Marriott Wailea.
(5)	Prior Ownership for the six months ended June 30, 2014 includes prior ownership results and the Company’s pro forma depreciation expense for the Marriott Wailea acquired on July 17, 2014. Prior Ownership for the six months ended June 30, 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, the Hyatt Regency San Francisco acquired on December 2, 2013, and the Marriott Wailea.
(6)	Actual Portfolio for the six months ended June 30, 2014 includes the Company’s ownership results for all 29 hotels held for investment by the Company as of June 30, 2014. Actual Portfolio for the six 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.
(7)	Other Adjustments for the six months ended June 30, 2013 include: a total of $2.1 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 $1.0 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.

PROPERTY-LEVEL EBITDA & EBITDA MARGINS Page 52

Supplemental Financial Information – Unaudited August 7, 2014

Property-Level EBITDA Reconciliation

Q3 2013

	Hotels sorted by number of rooms	For the Three Months Ended September 30, 2013
	(In thousands)						Plus:		Plus:		Plus:		Equals:		Hotel
		Total		Net Income /			Other						Hotel		EBITDA
		Revenues		(Loss)			Adjustments (2)		Depreciation		Interest Expense		EBITDA		Margins
1	Hilton San Diego Bayfront (1)	$	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 (3)	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	Marriott Wailea (3)	13,644		2,507			-		2,130		-		4,637		34.0	%
8	Renaissance Los Angeles Airport	6,414		620			-		765		-		1,385		21.6	%
9	JW Marriott New Orleans	6,757		(293		)	1		1,347		503		1,558		23.1	%
10	Hilton North Houston	5,079		(756		)	-		952		472		668		13.2	%
11	Doubletree Guest Suites Times Square (1)	18,125		1,727			998		2,031		1,827		6,583		36.3	%
12	Marriott Quincy	7,659		1,170			-		1,140		-		2,310		30.2	%
13	Hilton Times Square	13,888		313			92		2,535		1,245		4,185		30.1	%
14	Fairmont Newport Beach	7,375		521			-		1,206		-		1,727		23.4	%
15	Hyatt Chicago Magnificent Mile	8,480		690			-		1,565		-		2,255		26.6	%
16	Marriott Boston Long Wharf	14,866		1,808			-		2,093		2,514		6,415		43.2	%
17	Hyatt Regency Newport Beach	9,413		1,363			-		865		-		2,228		23.7	%
18	Marriott Tysons Corner	4,547		(120		)	-		808		588		1,276		28.1	%
19	Marriott Houston	3,613		(191		)	-		576		302		687		19.0	%
20	Renaissance Long Beach	5,401		740			-		587		-		1,327		24.6	%
21	Embassy Suites Chicago	8,003		1,659			-		927		1,028		3,614		45.2	%
22	Hilton Garden Inn Chicago Downtown/Magnificent Mile	6,088		1,424			-		1,157		-		2,581		42.4	%
23	Renaissance Westchester	4,561		(429		)	-		705		-		276		6.1	%
24	Embassy Suites La Jolla	5,949		736			-		888		1,129		2,753		46.3	%
25	Marriott Philadelphia	4,268		261			-		473		357		1,091		25.6	%
26	Hilton New Orleans St. Charles	2,331		94			-		542		-		636		27.3	%
27	Marriott Portland	4,741		1,920			-		424		-		2,344		49.4	%
28	Sheraton Cerritos	2,992		286			-		405		-		691		23.1	%
29	Marriott Park City	1,963		(308		)	-		362		198		252		12.8	%
30	Courtyard by Marriott Los Angeles	2,902		799			-		308		-		1,107		38.1	%
	Pro Forma Comparable Portfolio (3)	284,858		27,091			1,541		39,558		18,140		86,330		30.3	%
	Less: Prior Ownership (4)
	Hyatt Regency San Francisco	22,627		2,327			-		2,736		-		5,063		22.4	%
	Marriott Wailea	13,644		2,507			-		2,130		-		4,637		34.0	%
	Actual Portfolio (5)	$	248,587	$	22,257		$	1,541	$	34,692	$	18,140	$	76,630	30.8	%
	*Footnotes on page 54

PROPERTY-LEVEL EBITDA & EBITDA MARGINS Page 53  

Supplemental Financial Information – Unaudited August 7, 2014

Property-Level EBITDA Reconciliation

Q3 2013 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 includes all 29 hotels held for investment by the Company as of June 30, 2014, plus the Marriott Wailea acquired on July 17, 2014. Includes the Company’s ownership results, prior ownership results and the Company’s pro forma depreciation expense for the Hyatt Regency San Francisco acquired on December 2, 2013, and the Marriott Wailea.
(4)	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, and the Marriott Wailea acquired on July 17, 2014.
(5)	Actual Portfolio for the three months ended September 31, 2013 includes the Company’s ownership results for all 28 hotels held for investment by the Company as of September 30, 2013.

PROPERTY-LEVEL EBITDA & EBITDA MARGINS Page 54

Supplemental Financial Information – Unaudited August 7, 2014

Property-Level EBITDA Reconciliation

Q4 2013

	Hotels sorted by number of rooms	For the Three Months Ended December 31, 2013
	(In thousands)						Plus:			Plus:		Plus:		Equals:		Hotel
		Total		Net Income /			Other							Hotel		EBITDA
		Revenues		(Loss)			Adjustments (2)			Depreciation		Interest Expense		EBITDA		Margins
1	Hilton San Diego Bayfront (1)	$	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	18,668		633			-			2,413		1,908		4,954		26.5	%
4	Hyatt Regency San Francisco (4)	22,671		1,346			-			2,736		-		4,082		18.0	%
5	Renaissance Orlando at SeaWorld ®	11,152		(891		)	-			1,882		1,108		2,099		18.8	%
6	Renaissance Harborplace	9,927		(432		)	-			1,753		1,236		2,557		25.8	%
7	Marriott Wailea (4)	13,714		2,515			-			2,130		-		4,645		33.9	%
8	Renaissance Los Angeles Airport	6,181		533			-			770		-		1,303		21.1	%
9	JW Marriott New Orleans	9,452		2,054			(4		)	1,323		439		3,812		40.3	%
10	Hilton North Houston	5,489		(138		)	-			918		471		1,251		22.8	%
11	Doubletree Guest Suites Times Square (1)	20,108		3,284			997			2,072		1,816		8,169		40.6	%
12	Marriott Quincy	7,213		849			-			1,148		-		1,997		27.7	%
13	Hilton Times Square	16,180		1,868			91			2,547		1,246		5,752		35.6	%
14	Fairmont Newport Beach	5,806		(359		)	-			1,163		-		804		13.8	%
15	Hyatt Chicago Magnificent Mile	7,407		(142		)	-			1,596		-		1,454		19.6	%
16	Marriott Boston Long Wharf	12,643		(194		)	-			2,119		2,513		4,438		35.1	%
17	Hyatt Regency Newport Beach	6,897		79			-			868		-		947		13.7	%
18	Marriott Tysons Corner	5,011		26			-			820		583		1,429		28.5	%
19	Marriott Houston	3,999		399			-			568		299		1,266		31.7	%
20	Renaissance Long Beach	4,726		296			-			589		-		885		18.7	%
21	Embassy Suites Chicago	6,620		503			-			929		1,022		2,454		37.1	%
22	Hilton Garden Inn Chicago Downtown/Magnificent Mile	4,614		200			-			1,164		-		1,364		29.6	%
23	Renaissance Westchester	5,294		143			-			753		-		896		16.9	%
24	Embassy Suites La Jolla	4,440		(353		)	-			895		1,125		1,667		37.5	%
25	Marriott Philadelphia	4,257		185			-			479		355		1,019		23.9	%
26	Hilton New Orleans St. Charles (3)	3,524		637			-			544		-		1,181		33.5	%
27	Marriott Portland	3,537		1,062			-			420		-		1,482		41.9	%
28	Sheraton Cerritos	3,111		427			-			409		-		836		26.9	%
29	Marriott Park City	1,497		(552		)	-			402		196		46		3.1	%
30	Courtyard by Marriott Los Angeles	2,633		535			-			308		-		843		32.0	%
	Pro Forma Comparable Portfolio (4)	272,940		17,326			1,535			39,803		17,991		76,655		28.1	%
	Less: Prior Ownership (5)
	Hyatt Regency San Francisco	16,992		2,041			-			1,824		-		3,865		22.7	%
	Marriott Wailea	13,714		2,515			-			2,130		-		4,645		33.9	%
	Actual Portfolio (6)	$	242,234	$	12,770		$	1,535		$	35,849	$	17,991	$	68,145	28.1	%
	*Footnotes on page 56

PROPERTY-LEVEL EBITDA & EBITDA MARGINS Page 55  

Supplemental Financial Information – Unaudited August 7, 2014

Property-Level EBITDA Reconciliation

Q4 2013 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.
(4)	Pro Forma Comparable Portfolio includes all 29 hotels held for investment by the Company as of June 30, 2014, plus the Marriott Wailea acquired on July 17, 2014. Includes the Company’s ownership results, prior ownership results and the Company’s pro forma depreciation expense for the Hyatt Regency San Francisco acquired on December 2, 2013, and the Marriott Wailea.
(5)	Prior Ownership includes prior ownership results and the Company’s pro forma depreciation expense for the Hyatt Regency San Francisco acquired on December 2, 2013, and the Marriott Wailea acquired on July 17, 2014.
(6)	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.

PROPERTY-LEVEL EBITDA & EBITDA MARGINS Page 56

Supplemental Financial Information – Unaudited August 7, 2014

Property-Level EBITDA Reconciliation

FY 2013

	Hotels sorted by number of rooms	For the Year Ended December 31, 2013
	(In thousands)						Plus:			Plus:		Plus:		Equals:		Hotel
		Total		Net Income /			Other							Hotel		EBITDA
		Revenues		(Loss)			Adjustments (2)			Depreciation		Interest Expense		EBITDA		Margins
1	Hilton San Diego Bayfront (1)	$	122,115	$	16,066		$	1,801		$	15,826	$	9,363	$	43,056	35.3	%
2	Boston Park Plaza (4)	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 (4)	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	Marriott Wailea (4)	57,151		11,757			-			8,520		-		20,277		35.5	%
8	Renaissance Los Angeles Airport	25,090		2,122			-			3,037		-		5,159		20.6	%
9	JW Marriott New Orleans	35,361		5,597			(1		)	5,604		1,702		12,902		36.5	%
10	Hilton North Houston	22,261		(1,290		)	-			3,708		1,928		4,346		19.5	%
11	Doubletree Guest Suites Times Square (1)	69,297		4,215			3,992			8,414		7,130		23,751		34.3	%
12	Marriott Quincy (3)	28,045		3,551			-			4,568		-		8,119		28.9	%
13	Hilton Times Square (3)	52,509		(384		)	375			9,859		4,957		14,807		28.2	%
14	Fairmont Newport Beach	26,384		207			-			4,887		-		5,094		19.3	%
15	Hyatt Chicago Magnificent Mile (3)	25,196		(3,678		)	-			6,212		-		2,534		10.1	%
16	Marriott Boston Long Wharf	50,816		409			-			8,405		9,972		18,786		37.0	%
17	Hyatt Regency Newport Beach (3)	28,853		1,273			-			3,129		-		4,402		15.3	%
18	Marriott Tysons Corner	19,788		236			-			3,366		2,341		5,943		30.0	%
19	Marriott Houston	15,738		383			-			2,282		1,201		3,866		24.6	%
20	Renaissance Long Beach	21,758		3,251			-			2,379		-		5,630		25.9	%
21	Embassy Suites Chicago (3)	26,486		2,396			-			3,625		4,088		10,109		38.2	%
22	Hilton Garden Inn Chicago Downtown/Magnificent Mile (3)	20,474		2,623			-			4,627		-		7,250		35.4	%
23	Renaissance Westchester (3)	17,296		(1,661		)	-			2,437		-		776		4.5	%
24	Embassy Suites La Jolla	20,199		447			-			3,578		4,522		8,547		42.3	%
25	Marriott Philadelphia	18,012		1,306			-			1,886		1,423		4,615		25.6	%
26	Hilton New Orleans St. Charles (3) (4)	12,827		2,424			-			2,156		-		4,580		35.7	%
27	Marriott Portland	14,867		4,886			-			1,585		-		6,471		43.5	%
28	Sheraton Cerritos	12,473		1,644			-			1,641		-		3,285		26.3	%
29	Marriott Park City	9,087		(270		)	-			1,495		788		2,013		22.2	%
30	Courtyard by Marriott Los Angeles	10,973		2,489			-			1,233		-		3,722		33.9	%
	Pro Forma Comparable Portfolio (4)	1,093,734		76,325			6,167			159,008		71,835		313,335		28.6	%
	Less: Prior Ownership (5)
	Hilton New Orleans St. Charles	5,025		1,348			-			714		-		2,062		41.0	%
	Boston Park Plaza	32,977		1,443			-			3,698		2,647		7,788		23.6	%
	Hyatt Regency San Francisco	81,377		6,621			-			10,032		-		16,653		20.5	%
	Marriott Wailea	57,151		11,757			-			8,520		-		20,277		35.5	%
	Actual Portfolio (6)	$	917,204	$	55,156		$	6,167		$	136,044	$	69,188	$	266,555	29.1	%
	*Footnotes on page 58

PROPERTY-LEVEL EBITDA & EBITDA MARGINS Page 57

Supplemental Financial Information – Unaudited August 7, 2014

Property-Level EBITDA Reconciliation

FY 2013 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.
(4)	Pro Forma Comparable Portfolio includes all 29 hotels held for investment by the Company as of June 30, 2014, plus the Marriott Wailea acquired on July 17, 2014. Includes the Company’s ownership results, 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, the Hyatt Regency San Francisco acquired on December 2, 2013, and the Marriott Wailea.
(5)	Prior Ownership for the year ended 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, the Hyatt Regency San Francisco acquired on December 2, 2013, and the Marriott Wailea acquired on July 17, 2014.
(6)	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.

PROPERTY-LEVEL EBITDA & EBITDA MARGINS Page 58