Sunstone Hotel Investors (SHO) 8-K Sunstone Hotel Investors Reports Results for Third Quarter 2016

Exhibit 99.2

Supplemental Financial Information
November 1, 2016

Supplemental Financial Information For the quarter ended September 30, 2016 November 1, 2016

Supplemental Financial Information
November 1, 2016

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 Q3 2016 – Q3 2015						10
Consolidated Statements of Operations Q3 and YTD 2016/2015						12
Reconciliation of Net Income to EBITDA and Adjusted EBITDA Q3 and YTD 2016/2015						13
Reconciliation of Net Income to FFO and Adjusted FFO Attributable to Common Stockholders Q3 and YTD 2016/2015						14
Pro Forma Consolidated Statements of Operations Q3 2016 – Q4 2015,  FY 2015						15
EARNINGS GUIDANCE						16
Earnings Guidance for Q4 and FY 2016						17
Reconciliation of Net Income to Adjusted EBITDA and Adjusted FFO Attributable to Common Stockholders Q4 and FY 2016						19
CAPITALIZATION						20
Comparative Capitalization Q3 2016 –  Q3 2015						21
Consolidated Debt Summary Schedule						22
Consolidated Amortization and Debt Maturity Schedule						23
PROPERTY-LEVEL DATA						24
Hotel Information as of September 30, 2016						25
PROPERTY-LEVEL OPERATING STATISTICS						26
Property-Level Operating Statistics Q3 2016/2015						27
Property-Level Operating Statistics Q3 YTD 2016/2015						28

Supplemental Financial Information
November 1, 2016

OPERATING STATISTICS BY BRAND & GEOGRAPHY	29
Comparable Portfolio Operating Statistics by Brand Q3 and YTD 2016/2015	30
Comparable Portfolio Property-Level Trailing 12 Month Adjusted EBITDA Contribution by Brand	31
Comparable Portfolio Operating Statistics by Region Q3 and YTD 2016/2015	32
PROPERTY-LEVEL ADJUSTED EBITDA & ADJUSTED EBITDA MARGINS	33
Property-Level Adjusted EBITDA Q3 and YTD 2016/2015	34
Property-Level Adjusted EBITDA Q3 and YTD 2016/2015 Footnotes	35
Property-Level Adjusted EBITDA Margins Q3 and YTD 2016/2015	36
Property-Level Adjusted EBITDA Margins Q3 and YTD 2016/2015 Footnotes	37
Property-Level Adjusted EBITDA Reconciliation Q3 2016	38
Property-Level Adjusted EBITDA Reconciliation Q3 2015	39
Property-Level Adjusted EBITDA Reconciliation Q3 2016/2015 Footnotes	40
Property-Level Adjusted EBITDA Reconciliation Q3 YTD 2016	41
Property-Level Adjusted EBITDA Reconciliation Q3 YTD 2015	42
Property-Level Adjusted EBITDA Reconciliation Q3 YTD 2016/2015 Footnotes	43

Supplemental Financial Information
November 1, 2016

CORPORATE PROFILE, FINANCIAL DISCLOSURES,
AND SAFE HARBOR

CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR							Page 3

Supplemental Financial Information
November 1, 2016

About Sunstone

Sunstone Hotel Investors, Inc. (NYSE:SHO) is a lodging real estate investment trust (REIT) that, as of November 1, 2016, has interests in 28 hotels held for investment comprised of 13,666 rooms. Sunstone’s hotels are primarily in the urban and resort upper upscale segment and are operated under nationally recognized brands, such as Marriott, Hilton, Hyatt and Fairmont.

Sunstone’s mission is to create meaningful value for our stockholders by producing superior long-term returns. Our values include transparency, trust, ethical conduct, communication and discipline. As demand for lodging generally fluctuates with the overall economy, we seek to employ a balanced strategy focused on long-term value creation.

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

Company Contacts
John Arabia
President and Chief Executive Officer 
(949) 382-3008

Bryan Giglia
Executive Vice President and Chief Financial Officer 
(949) 382-3036

CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR							Page 4

Supplemental Financial Information
November 1, 2016

Forward-Looking Statement

This presentation 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 opinions, 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, changes in the European Union or global economic slowdown, as well as any type of flu or disease-related pandemic, affecting the lodging and travel industry; the ability to maintain sufficient liquidity and our access to capital markets; terrorist attacks or civil unrest, which would affect occupancy rates at our hotels and the demand for hotel products and services; operating risks associated with the hotel business; risks associated with the level of our indebtedness and our ability to meet covenants in our debt and equity agreements; relationships with property managers and franchisors; our ability to maintain our properties in a first-class manner, including meeting capital expenditure requirements; our ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; changes in travel patterns, taxes and government regulations, which influence or determine wages, prices, construction procedures and costs; our ability to identify, successfully compete for and complete acquisitions; the performance of hotels after they are acquired; necessary capital expenditures and our ability to fund them and complete them with minimum disruption; our ability to continue to satisfy complex rules in order for us to qualify as a REIT for federal income tax purposes; and other risks and uncertainties associated with our business described in the Company’s filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All forward-looking information in this presentation is as of November 1, 2016, 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
November 1, 2016

Non-GAAP Financial Measures

We present the following non-GAAP financial measures that we believe are useful to investors as key supplemental measures of our operating performance: earnings before interest expense, taxes, depreciation and amortization, or EBITDA; Adjusted EBITDA (as defined below); funds from operations attributable to common stockholders, or FFO attributable to common stockholders;  Adjusted FFO attributable to common stockholders (as defined below); hotel Adjusted EBITDA; and hotel  Adjusted 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 attributable to common stockholders, Adjusted FFO attributable to common stockholders,  hotel Adjusted EBITDA and hotel Adjusted EBITDA margin as calculated by us, may not be comparable to other companies that do not define such terms exactly the same as the Company does. 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 and Adjusted EBITDA are commonly used measures of performance in many industries. We believe EBITDA and Adjusted EBITDA are useful to investors in evaluating our operating performance because these measures help investors evaluate and compare the results of our operations from period to period by removing the impact of our capital structure (primarily interest expense) and our asset base (primarily depreciation and amortization) from our operating results. We also believe the use of EBITDA and Adjusted EBITDA facilitate 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 and Adjusted EBITDA as measures 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 attributable to common stockholders provides useful information to investors regarding our operating performance because it is a measure of our operations without regard to specified noncash 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 attributable to common stockholders conforms to the National Association of Real Estate Investment Trusts’ (“NAREIT”) definition of “FFO applicable to common shares.” 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 that we do.  

We also present Adjusted FFO attributable 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.

CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR							Page 6

Supplemental Financial Information
November 1, 2016

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

· Amortization of favorable and unfavorable contracts:  we exclude the noncash 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 and unfavorable tenant lease contracts, as applicable, recorded in conjunction with our acquisitions of the Boston Park Plaza, the Hilton Garden Inn Chicago Downtown/Magnificent Mile, the Hilton New Orleans St. Charles, the Hyatt Regency San Francisco and the Wailea Beach Marriott Resort & Spa. We exclude the noncash amortization of favorable and unfavorable contracts because it is based on historical cost accounting and is of lesser significance in evaluating our actual performance for the current period.

· Ground rent adjustments: we exclude the noncash expense incurred from straight-lining our ground lease obligations as this expense does not reflect the actual rent amounts due to the respective lessors in the current period and is of lesser significance in evaluating our actual performance for the current period.  

· 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 classified as a business 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 or our hotels.

· Noncontrolling interests: we deduct the noncontrolling partner’s pro rata share of any EBITDA or FFO adjustments related to our consolidated Hilton San Diego Bayfront partnership, as well as any preferred dividends earned by preferred investors in an entity that owned the Doubletree Guest Suites Times Square, including related administrative fees,  prior to the hotel’s sale in December 2015.  

· 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, which include the accounting impact from prior periods, 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 attributable to common stockholders is not consistent with reflecting the ongoing performance of our remaining assets.

· Other adjustments: we exclude other adjustments that we believe are outside the ordinary course of business because we do not believe these costs reflect our actual performance for the period and/or the ongoing operations of our hotels. Such items may include: executive severance costs; lawsuit settlement costs; prior year property tax assessments or credits; property-level restructuring, severance and management transition costs; lease terminations; and any gains or losses we have recognized on sales or redemptions of assets other than real estate investments.

CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR							Page 7

Supplemental Financial Information
November 1, 2016

In addition, to derive Adjusted EBITDA we exclude the noncash expense incurred with the amortization of deferred stock compensation as this expense is based on historical stock prices at the date of grant to our corporate employees and 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 actual rent due to the hotel’s lessor in the current period, as well as 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 attributable to common stockholders, we also exclude the noncash gains or losses on our derivatives, as well as any federal and state taxes associated with the application of net operating loss carryforwards, uncertain tax positions or with the sale of assets other than real estate investments. 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 attributable to common stockholders and Adjusted FFO attributable to common stockholders are set forth on page  14 of this supplemental package.

Our 27 comparable hotel portfolio is comprised of our total portfolio with the exception of the Wailea Beach Marriott Resort & Spa due to its extensive repositioning disruption during the fourth quarter of 2015 as well as all of 2016. We believe that providing comparable hotel data is useful to us and to investors in evaluating our operating performance because this measure helps us and investors evaluate and compare the results of our operations from period to period by removing the fluctuations caused by any acquisitions or dispositions, as well as by those hotels that we classify as held for sale, those hotels that are undergoing a material renovation or repositioning and those hotels whose room counts have materially changed during either the current or prior year. We strongly encourage investors to review our financial information in its entirety and not to rely on a single financial measure. 

CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR							Page 8

Supplemental Financial Information
November 1, 2016

CORPORATE FINANCIAL INFORMATION

CORPORATE FINANCIAL INFORMATION							Page 9

Supplemental Financial Information
November 1, 2016

Condensed Consolidated Balance Sheets
Q3 2016 – Q3 2015 

(In thousands)	September 30, 2016 (1)		June 30, 2016 (2)		March 31, 2016 (3)		December 31, 2015 (4)		September 30, 2015 (5)
Assets
Investment in hotel properties:
Land	$	542,660	$	542,660	$	542,660	$	542,660	$	570,011
Buildings & improvements		3,168,291		3,118,115		3,130,034		3,109,562		3,300,555
Furniture, fixtures, & equipment		510,347		492,275		491,464		480,832		486,333
Other		164,893		190,358		168,171		144,305		227,660
		4,386,191		4,343,408		4,332,329		4,277,359		4,584,559
Less accumulated depreciation & amortization		(1,151,377)		(1,111,739)		(1,088,354)		(1,048,349)		(1,061,269)
		3,234,814		3,231,669		3,243,975		3,229,010		3,523,290
Other assets, net (6)		11,684		12,300		12,388		14,696		13,450
Current assets:
Cash and cash equivalents		367,117		354,682		396,669		499,067		176,190
Restricted cash		67,248		62,335		68,313		76,180		91,541
Other current assets, net		58,598		56,154		60,445		44,298		61,058
Total assets	$	3,739,461	$	3,717,140	$	3,781,790	$	3,863,251	$	3,865,529

*Footnotes on following page.

CORPORATE FINANCIAL INFORMATION							Page 10

Supplemental Financial Information
November 1, 2016

Condensed Consolidated Balance Sheets
Q3 2016 – Q3 2015 (cont.)

(In thousands)	September 30, 2016 (1)		June 30, 2016 (2)		March 31, 2016 (3)		December 31, 2015 (4)		September 30, 2015 (5)
Liabilities
Current liabilities:
Current portion of notes payable, net (6)	$	251,276	$	251,719	$	149,021	$	85,776	$	205,216
Other current liabilities		117,911		114,258		117,442		365,217		126,967
Total current liabilities		369,187		365,977		266,463		450,993		332,183
Notes payable, less current portion, net (6)		748,767		751,096		929,390		1,010,819		1,101,693
Capital lease obligations, less current portion		15,574		15,575		15,575		15,575		15,575
Other liabilities		42,677		44,945		41,052		34,744		35,258
Total liabilities		1,176,205		1,177,593		1,252,480		1,512,131		1,484,709
Equity
Stockholders' equity:
8.0% Series D cumulative redeemable preferred stock		—		—		115,000		115,000		115,000
6.95% Series E cumulative redeemable preferred stock		115,000		115,000		115,000		—		—
6.45% Series F cumulative redeemable preferred stock		75,000		75,000		—		—		—
Common stock, $0.01 par value, 500,000,000 shares authorized		2,165		2,166		2,165		2,076		2,076
Additional paid in capital (7)		2,540,782		2,539,278		2,535,141		2,458,889		2,457,566
Retained earnings (7)		753,725		716,351		652,270		652,704		416,804
Cumulative dividends and distributions		(973,105)		(959,072)		(941,460)		(927,868)		(662,744)
Total stockholders' equity		2,513,567		2,488,723		2,478,116		2,300,801		2,328,702
Noncontrolling interests in consolidated joint ventures		49,689		50,824		51,194		50,319		52,118
Total equity		2,563,256		2,539,547		2,529,310		2,351,120		2,380,820
Total liabilities and equity	$	3,739,461	$	3,717,140	$	3,781,790	$	3,863,251	$	3,865,529

(1) As presented on Form 10-Q to be filed in November 2016.

(2) As presented on Form 10-Q filed August 8,  2016.

(3) As presented on Form 10-Q filed May 2,  2016.

(4) As presented on Form 10-K filed February 23, 2016.

(5) As presented on Form 10-Q filed November 3, 2015.

(6) Reflects the adoption of Accounting Standards Update No. 2015-03.

(7) Reflects the adoption of Accounting Standards Update No. 2016-09.

CORPORATE FINANCIAL INFORMATION							Page 11

Supplemental Financial Information
November 1, 2016

Consolidated Statements of Operations
Q3 and YTD 2016/2015

		Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands, except per share data)		2016		2015		2016		2015
Revenues
Room	$	217,672	$	233,787	$	629,145	$	666,756
Food and beverage		68,899		68,371		221,431		219,820
Other operating		16,733		22,437		49,180		61,671
Total revenues		303,304		324,595		899,756		948,247
Operating expenses
Room		54,624		58,332		160,185		169,742
Food and beverage		49,174		50,381		154,042		153,412
Other operating		4,328		5,605		12,516		16,073
Advertising and promotion		15,015		15,325		45,285		46,252
Repairs and maintenance		10,876		11,859		33,139		34,798
Utilities		8,252		9,374		23,114		26,736
Franchise costs		9,408		10,591		27,402		30,009
Property tax, ground lease and insurance		20,944		25,649		61,941		72,413
Property general and administrative		35,003		37,828		107,698		109,384
Corporate overhead		6,392		6,046		19,918		27,222
Depreciation and amortization		40,442		41,331		121,169		122,911
Total operating expenses		254,458		272,321		766,409		808,952
Operating income		48,846		52,274		133,347		139,295
Interest and other income		283		576		1,127		3,350
Interest expense		(11,136)		(16,405)		(47,018)		(51,020)
Loss on extinguishment of debt		—		—		(259)		(2)
Gain on sale of assets		—		11,682		18,223		11,682
Income before income taxes and discontinued operations		37,993		48,127		105,420		103,305
Income tax benefit (provision)		1,434		(938)		959		(1,256)
Income from continuing operations		39,427		47,189		106,379		102,049
Income from discontinued operations, net of tax		—		15,895		—		15,895
Net income		39,427		63,084		106,379		117,944
Income from consolidated joint ventures attributable to noncontrolling interests		(2,053)		(1,982)		(5,358)		(6,643)
Preferred stock dividends and redemption charge		(3,207)		(2,300)		(12,756)		(6,900)
Income attributable to common stockholders	$	34,167	$	58,802	$	88,265	$	104,401
Basic and diluted per share amounts:
Income from continuing operations attributable to common stockholders	$	0.16	$	0.20	$	0.41	$	0.42
Income from discontinued operations, net of tax		—		0.08		—		0.08
Basic and diluted income attributable to common stockholders per common share	$	0.16	$	0.28	$	0.41	$	0.50
Basic and diluted weighted average common shares outstanding		215,413		207,604		214,565		207,264
Distributions declared per common share	$	0.05	$	0.05	$	0.15	$	0.15

CORPORATE FINANCIAL INFORMATION							Page 12

Supplemental Financial Information
November 1, 2016

Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Q3 and YTD 2016/2015

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)		2016		2015		2016		2015
Net income	$	39,427	$	63,084	$	106,379	$	117,944
Operations held for investment:
Depreciation and amortization		40,442		41,331		121,169		122,911
Amortization of lease intangibles		62		1,027		189		3,084
Interest expense		11,136		16,405		47,018		51,020
Income tax (benefit) provision		(1,434)		938		(959)		1,256
Noncontrolling interests:
Income from consolidated joint ventures attributable to noncontrolling interests		(2,053)		(1,982)		(5,358)		(6,643)
Depreciation and amortization		(872)		(865)		(2,607)		(2,566)
Interest expense		(424)		(386)		(1,251)		(1,149)
Discontinued operations:
Income tax provision		—		105		—		105
EBITDA		86,284		119,657		264,580		285,962
Operations held for investment:
Amortization of deferred stock compensation		1,539		824		5,616		5,505
Amortization of favorable and unfavorable contracts, net		327		43		342		(136)
Noncash straight-line lease expense		465		496		1,413		1,491
Capital lease obligation interest - cash ground rent		(351)		(351)		(1,053)		(1,053)
Loss (gain) on sale of assets, net		8		(11,707)		(18,226)		(11,708)
Severance costs associated with sale of BuyEfficient		—		1,636		—		1,636
Loss on extinguishment of debt		—		—		259		2
Gain on redemption of note receivable		—		—		—		(939)
Prior year property tax adjustments, net		(239)		(765)		(4,279)		(865)
Property-level restructuring, severance and management transition costs		18		474		1,578		1,157
Lease termination costs		—		—		1,000		300
Costs associated with CEO severance		—		—		—		5,257
Noncontrolling interests:
Noncash straight-line lease expense		(113)		(113)		(338)		(338)
Discontinued operations:
Gain on sale of assets		—		(16,000)		—		(16,000)
		1,654		(25,463)		(13,688)		(15,691)
Adjusted EBITDA	$	87,938	$	94,194	$	250,892	$	270,271

CORPORATE FINANCIAL INFORMATION							Page 13

Supplemental Financial Information
November 1, 2016

Reconciliation of Net Income to FFO and Adjusted FFO  Attributable to Common Stockholders
Q3 and YTD 2016/2015

	Three Months Ended September 30,					Nine Months Ended September 30,
(In thousands, except per share data)		2016		2015		2016		2015
Net income	$	39,427	$	63,084	$	106,379	$	117,944
Preferred stock dividends and redemption charge		(3,207)		(2,300)		(12,756)		(6,900)
Operations held for investment:
Real estate depreciation and amortization		40,296		40,921		120,715		121,708
Amortization of lease intangibles		62		1,027		189		3,084
Loss (gain) on sale of assets, net		8		(11,707)		(18,226)		(11,708)
Noncontrolling interests:
Income from consolidated joint ventures attributable to noncontrolling interests		(2,053)		(1,982)		(5,358)		(6,643)
Real estate depreciation and amortization		(872)		(865)		(2,607)		(2,566)
Discontinued operations:
Gain on sale of assets		—		(16,000)		—		(16,000)
FFO attributable to common stockholders		73,661		72,178		188,336		198,919
Operations held for investment:
Write-off of deferred financing fees		—		—		—		455
Amortization of favorable and unfavorable contracts, net		327		43		342		(136)
Noncash straight-line lease expense		465		496		1,413		1,491
Noncash interest related to (gain) loss on derivatives, net		(1,374)		2		7,810		12
Loss on extinguishment of debt		—		—		259		2
Gain on redemption of note receivable		—		—		—		(939)
Prior year property tax adjustments, net		(239)		(765)		(4,279)		(865)
Property-level restructuring, severance and management transition costs		18		474		1,578		1,157
Lease termination costs		—		—		1,000		300
Income tax benefit related to reversal of uncertain tax liabilities		(1,596)		—		(1,596)		—
Preferred stock redemption charge		—		—		4,052		—
Costs associated with CEO severance		—		—		—		5,257
Amortization of deferred stock compensation associated with CEO severance		—		—		—		1,623
Severance costs associated with sale of BuyEfficient		—		1,636		—		1,636
Income tax provision related to gain on sale of BuyEfficient		—		720		—		720
Noncontrolling interests:
Noncash straight-line lease expense		(113)		(113)		(338)		(338)
Noncash interest related to loss on derivative		—		(1)		—		(3)
Discontinued operations:
Income tax provision		—		105		—		105
		(2,512)		2,597		10,241		10,477
Adjusted FFO attributable to common stockholders	$	71,149	$	74,775	$	198,577	$	209,396
FFO attributable to common stockholders per diluted share	$	0.34	$	0.35	$	0.88	$	0.96
Adjusted FFO attributable to common stockholders per diluted share	$	0.33	$	0.36	$	0.92	$	1.01
Basic weighted average shares outstanding		215,413		207,604		214,565		207,264
Shares associated with unvested restricted stock awards		288		218		165		265
Diluted weighted average shares outstanding		215,701		207,822		214,730		207,529

CORPORATE FINANCIAL INFORMATION							Page 14

Supplemental Financial Information
November 1, 2016

Pro Forma Consolidated Statements of Operations
Q3 2016 – Q4 2015,  FY 2015 

	Three Months Ended (1)								Year Ended (1)
(Unaudited and in thousands)		Sept. 30,		June 30,		March 31,		Dec. 31,		Dec. 31,
		2016		2016		2016		2015		2015
Revenues
Room	$	217,672	$	223,199	$	184,926	$	191,893	$	811,166
Food and beverage		68,899		80,796		70,302		72,041		285,570
Other operating		16,733		16,674		15,709		17,847		68,330
Total revenues		303,304		320,669		270,937		281,781		1,165,066
Operating Expenses
Room		54,624		54,301		50,523		50,143		206,353
Food and beverage		49,174		52,663		51,404		49,777		197,552
Other expenses		103,826		103,238		102,127		98,237		402,421
Corporate overhead		6,392		6,809		6,717		6,117		33,339
Depreciation and amortization		40,442		40,549		39,650		40,324		156,488
Total operating expenses		254,458		257,560		250,421		244,598		996,153
Operating Income		48,846		63,109		20,516		37,183		168,913
Interest and other income		283		355		489		535		2,327
Interest expense		(11,136)		(15,872)		(20,010)		(14,043)		(59,966)
Loss on extinguishment of debt		—		(154)		(105)		(26)		(28)
Income before income taxes		37,993		47,438		890		23,649		111,246
Income tax benefit (provision)		1,434		(238)		(237)		(178)		(714)
Income from continuing operations	$	39,427	$	47,200	$	653	$	23,471	$	110,532
Adjusted EBITDA (2)	$	87,938	$	100,670	$	60,880	$	74,953	$	324,741

(1) Includes the Company's ownership results for the 28 hotel portfolio held for investment by the Company as of September 30, 2016. Excludes the Company's ownership results for the Sheraton Cerritos, the Doubletree Guest Suites Times Square and BuyEfficient due to their sales in May 2016, December 2015 and September 2015, respectively.

(2) The Adjusted EBITDA reconciliation for Q3 2016 can be found on page 13 of this supplemental package. The Adjusted EBITDA reconciliations for Q2 2016, Q1 2016, Q4 2015, and full year 2015 can be found in the supplemental package furnished on Form 8-K to the SEC on August 8, 2016.

CORPORATE FINANCIAL INFORMATION							Page 15

Supplemental Financial Information
November 1, 2016

EARNINGS GUIDANCE

EARNINGS GUIDANCE							Page 16

Supplemental Financial Information
November 1, 2016

Earnings Guidance for Q4 and FY 2016

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 unanticipated developments in its business or changes in its operating environment, nor does it take into account any unannounced hotel acquisitions, dispositions, re-brandings, management changes, transition costs, severance costs associated with restructuring hotel services, early lease termination costs,  prior year property tax assessments or credits, debt repurchases/repayments, perpetual preferred redemptions or unannounced financings during 2016.  

For the fourth quarter of 2016, the Company expects:

Metric	Quarter Ended December 31, 2016 Guidance (1)
Net Income ($ millions)	$16  to  $20
Total Portfolio Hotel RevPAR Growth	- 2.0%   to   0.0%
Comparable Hotel RevPAR Growth (2)	- 2.5%  to  - 0.5%
Adjusted EBITDA ($ millions)	$69  to  $73
Adjusted FFO Attributable to Common Stockholders ($ millions)	$52  to  $56
Adjusted FFO Attributable to Common Stockholders per Diluted Share	$0.24  to  $0.26
Diluted Weighted Average Shares Outstanding	215,800,000

For the full year of 2016, the Company expects: 

Metric	Prior Full Year 2016               Guidance (3)	Current Full Year 2016 Guidance (1)	Change in Full Year 2016 Guidance Midpoint
Net Income ($ millions)	$119  to  $133	$123  to  $127	- $1
Total Portfolio Hotel RevPAR Growth	0.0%  to  + 2.0%	- 0.5%  to  + 0.5%	- 1.0%
Comparable Hotel RevPAR Growth (2)	+ 0.5%  to  + 2.5%	+ 0.5%  to  + 1.5%	- 0.5%
Adjusted EBITDA ($ millions)	$318  to  $332	$320  to  $324	- $3
Adjusted FFO Attributable to Common Stockholders ($ millions)	$249  to  $262	$250  to  $254	- $4
Adjusted FFO Attributable to Common Stockholders per Diluted Share	$1.16  to  $1.22	$1.16  to  $1.18	- $0.02
Diluted Weighted Average Shares Outstanding	215,000,000	215,000,000	̶

(1) See page 19 for a detailed reconciliation.

(2) Comparable Hotel RevPAR Growth excludes the Wailea Beach Marriott Resort & Spa due to the hotel’s repositioning during 2016.

(3) Represents guidance presented on August 8, 2016.

EARNINGS GUIDANCE							Page 17

Supplemental Financial Information
November 1, 2016

Earnings Guidance for Q4 and FY 2016

Fourth quarter and full year 2016 guidance are based in part on the following assumptions:

· Full year revenue displacement of $11.0 million to $13.0 million, related to the repositioning at the Wailea Beach Marriott Resort & Spa, which is expected to negatively impact full year Total Portfolio Hotel RevPAR by 75 to 100 basis points.

· Guarantee payment of $5.0 million related to the Wailea Beach Marriott Resort & Spa recorded in the fourth quarter.

· Full year Comparable Hotel Adjusted EBITDA Margin reduction of approximately 75 to 25 basis points, which excludes the Wailea Beach Marriott Resort & Spa and any guarantee payments, but does reflect the impact related to the end of the ground rent abatement at the Hilton San Diego Bayfront.

· Full year consolidated EBITDA includes approximately $6.0 million of expense related to the end of the ground rent abatement at the Hilton San Diego Bayfront.

· Full year corporate overhead expense (excluding deferred stock amortization and one-time expenses related to acquisition closing costs) of approximately $19.0 million to $20.0 million.

· Full year amortization of deferred stock compensation expense of approximately $7.1 million.

· Full year interest expense of approximately $59.7 million to $59.8 million, including approximately $2.2 million in amortization of deferred financing fees and $7.8 million of noncash interest related to loss on derivatives, and excluding approximately $1.5 million of capital lease obligation interest.

· Full year expense of approximately $2.6 million in one-time costs related to property-level restructuring, severance, management transition and lease termination costs, the majority of which occurred during the first and second quarters.  These expenses have been excluded from both Adjusted EBITDA and Adjusted FFO attributable to common stockholders.

· Full year total preferred dividends of $11.9 million, which includes the Series D, Series E and Series F cumulative redeemable preferred stock, but excludes the $4.1 million redemption charge on the Series D.

EARNINGS GUIDANCE							Page 18

Supplemental Financial Information
November 1, 2016

Reconciliation of Net Income to Adjusted EBITDA and Adjusted FFO  Attributable to Common Stockholders
Q4 and FY 2016

Reconciliation of Net Income to Adjusted EBITDA

		Quarter Ended				Year Ended
		December 31, 2016				December 31, 2016
(In thousands, except per share data)		Low		High		Low		High
Net income	$	16,300	$	20,300	$	122,700	$	126,700
Depreciation and amortization		40,800		40,900		162,000		162,100
Amortization of lease intangibles		100		100		300		300
Interest expense		12,700		12,800		59,700		59,800
Income tax provision (benefit)		200		200		(800)		(800)
Noncontrolling interest		(2,700)		(2,900)		(12,200)		(12,400)
Amortization of deferred stock compensation		1,500		1,500		7,100		7,100
Noncash straight-line lease expense		500		500		2,300		2,300
Capital lease obligation interest - cash ground rent		(400)		(400)		(1,500)		(1,500)
Gain on sale of assets, net		—		—		(18,200)		(18,200)
Loss on extinguishment of debt		—		—		300		300
Prior year property tax adjustments, net		—		—		(4,300)		(4,300)
Property-level restructuring, severance, management transition and lease termination costs		—		—		2,600		2,600
Adjusted EBITDA	$	69,000	$	73,000	$	320,000	$	324,000

Reconciliation of Net Income to Adjusted FFO  Attributable to Common Stockholders

Net income	$	16,300	$	20,300	$	122,700	$	126,700
Preferred stock dividends		(3,200)		(3,200)		(11,900)		(11,900)
Real estate depreciation and amortization		40,500		40,700		161,200		161,400
Amortization of lease intangibles		100		100		300		300
Noncontrolling interest		(2,300)		(2,500)		(10,800)		(11,000)
Noncash straight-line lease expense		500		500		2,300		2,300
Noncash interest related to loss on derivatives, net		—		—		7,800		7,800
Gain on sale of assets, net		—		—		(18,200)		(18,200)
Loss on extinguishment of debt		—		—		300		300
Prior year property tax adjustments, net		—		—		(4,300)		(4,300)
Property-level restructuring, severance, management transition and lease termination costs		—		—		2,600		2,600
Income tax benefit related to reversal of uncertain tax liabilities		—		—		(1,600)		(1,600)
Adjusted FFO attributable to common stockholders	$	51,900	$	55,900	$	250,400	$	254,400
Adjusted FFO attributable to common stockholders per diluted share	$	0.24	$	0.26	$	1.16	$	1.18
Diluted weighted average shares outstanding		215,800		215,800		215,000		215,000

EARNINGS GUIDANCE							Page 19

Supplemental Financial Information
November 1, 2016

CAPITALIZATION

CAPITALIZATION							Page 20

Supplemental Financial Information
November 1, 2016

Comparative Capitalization
Q3 2016 –  Q3 2015

		Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,
(In thousands, except per share data)		2016			2016			2016			2015			2015
Common Share Price & Dividends
At the end of the quarter	$	12.79		$	12.07		$	14.00		$	12.49		$	13.23
High during quarter ended	$	13.89		$	13.85		$	14.00		$	14.99		$	15.97
Low during quarter ended	$	12.03		$	11.37		$	10.13		$	12.49		$	12.96
Common dividends per share (1)	$	0.05		$	0.05		$	0.05		$	1.26		$	0.05
Common Shares & Units
Common shares outstanding		216,509			216,576			216,517			208,591			208,591
Units outstanding		—			—			—			—			—
Total common shares and units outstanding		216,509			216,576			216,517			208,591			208,591
Capitalization
Market value of common equity	$	2,769,151		$	2,614,067		$	3,031,238		$	2,605,298		$	2,759,655
Liquidation value of preferred equity - Series D (2)		—			—			115,000			115,000			115,000
Liquidation value of preferred equity - Series E		115,000			115,000			115,000			—			—
Liquidation value of preferred equity - Series F		75,000			75,000			—			—			—
Consolidated debt (3) (4)		1,004,975			1,008,034			1,083,922			1,087,265			1,311,996
Consolidated total capitalization		3,964,126			3,812,101			4,345,160			3,807,563			4,186,651
Noncontrolling interest in consolidated debt (4)		(55,781)			(55,974)			(56,164)			(56,352)			(56,536)
Pro rata total capitalization	$	3,908,345		$	3,756,127		$	4,288,996		$	3,751,211		$	4,130,115
Consolidated debt to total capitalization		25.4	%		26.4	%		24.9	%		28.6	%		31.3	%
Pro rata debt to pro rata total capitalization		24.3	%		25.3	%		24.0	%		27.5	%		30.4	%
Consolidated debt and preferred equity to total capitalization		30.1	%		31.4	%		30.2	%		31.6	%		34.1	%
Pro rata debt and preferred equity to total capitalization		29.1	%		30.4	%		29.3	%		30.5	%		33.2	%

(1) Fourth quarter 2015 dividends were paid in a combination of cash and shares of the Company's common stock, pursuant to elections by individual stockholders.

(2) In April 2016, the Company redeemed all 4,600,000 shares of its Series D preferred stock at a price equal to the liquidation value of $115.0 million.

(3) Third quarter 2015 includes the effects of the Company's $85.0 million draw of the total available funds provided by the unsecured term loan under the Company's credit facility on October 29, 2015, as well as the use of these funds, along with cash on hand, on October 30, 2015 to repay the loan secured by the Renaissance Harborplace, which balance was $86.2 million on September 30, 2015. Fourth quarter 2015 includes the effects of the Company's $100.0 million draw of the total available funds provided by an unsecured term loan on January 29, 2016, as well as the use of these funds, along with cash on hand, on February 1, 2016 to repay the loan secured by the Boston Park Plaza, which balance was $114.2 million on December 31, 2015.

(4) Represents the outstanding debt principal balance and excludes the effects of the adoption of Accounting Standards Update No. 2015-03 to present debt issuance costs as a deduction from the corresponding debt liability.

CAPITALIZATION							Page 21

Supplemental Financial Information
November 1, 2016

Consolidated Debt Summary Schedule

(In thousands)		Interest Rate /	Maturity		September 30, 2016			Balance At
Debt	Collateral	Spread	Date		Balance			Maturity
Fixed Rate Debt
Secured Mortgage Debt	Embassy Suites Chicago	5.58%	03/01/2017	$	66,507		$	65,756
Secured Mortgage Debt	Marriott Boston Long Wharf	5.58%	04/11/2017		176,000			176,000
Secured Mortgage Debt	Hilton Times Square	4.97%	11/01/2020		83,734			76,145
Secured Mortgage Debt	Renaissance Washington DC	5.95%	05/01/2021		120,076			106,855
Term Loan Facility	Unsecured	3.39%	09/03/2022		85,000			85,000
Term Loan Facility	Unsecured	3.65%	01/31/2023		100,000			100,000
Secured Mortgage Debt	JW Marriott New Orleans	4.15%	12/11/2024		87,361			72,071
Secured Mortgage Debt	Embassy Suites La Jolla	4.12%	01/06/2025		63,173			51,987
Total Fixed Rate Debt					781,851			733,814
Secured Mortgage Debt	Hilton San Diego Bayfront	L + 2.25%	08/08/2019		223,124			213,513
Credit Facility	Unsecured	L + 1.55% - 2.30%	04/02/2019		—			—
Total Variable Rate Debt					223,124			213,513
TOTAL CONSOLIDATED DEBT				$	1,004,975		$	947,327
Preferred Stock
Series E cumulative redeemable preferred		6.95%	perpetual	$	115,000
Series F cumulative redeemable preferred		6.45%	perpetual		75,000
Total Preferred Stock				$	190,000
Debt Statistics
% Fixed Rate Debt					77.8	%
% Floating Rate Debt					22.2	%
Average Interest Rate (1)					4.36	%
Weighted Average Maturity of Debt					4.0 years

(1) Average Interest Rate on the variable-rate debt obligation is calculated based on the variable rate at September 30, 2016, and includes the effect of the Company's interest rate derivative agreement.

CAPITALIZATION							Page 22

Supplemental Financial Information
November 1, 2016

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 September 30, 2016 consolidated total capitalization as presented on page 21.

CAPITALIZATION							Page 23

Supplemental Financial Information
November 1, 2016

PROPERTY-LEVEL DATA

PROPERTY-LEVEL DATA							Page 24

Supplemental Financial Information
November 1, 2016

Hotel Information as of September 30, 2016

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	8.71%	75%	Leasehold	2071	2011
2	Boston Park Plaza	Massachusetts	Independent	1,060	7.76%	100%	Fee Simple		2013
3	Renaissance Washington DC	Washington DC	Marriott	807	5.91%	100%	Fee Simple		2005
4	Hyatt Regency San Francisco	California	Hyatt	804	5.88%	100%	Fee Simple		2013
5	Renaissance Orlando at SeaWorld® (2)	Florida	Marriott	781	5.71%	85%	Fee Simple		2005
6	Renaissance Harborplace	Maryland	Marriott	622	4.55%	100%	Fee Simple		2005
7	Wailea Beach Marriott Resort & Spa	Hawaii	Marriott	543	3.97%	100%	Fee Simple		2014
8	Renaissance Los Angeles Airport	California	Marriott	501	3.67%	100%	Fee Simple		2007
9	JW Marriott New Orleans (3)	Louisiana	Marriott	501	3.67%	100%	Leasehold	2081	2011
10	Hilton North Houston	Texas	Hilton	480	3.51%	100%	Fee Simple		2002
11	Hilton Times Square	New York	Hilton	478	3.50%	100%	Leasehold	2091	2006
12	Marriott Quincy	Massachusetts	Marriott	464	3.40%	100%	Fee Simple		2007
13	Fairmont Newport Beach	California	Fairmont	444	3.25%	100%	Fee Simple		2005
14	Hyatt Chicago Magnificent Mile	Illinois	Hyatt	419	3.07%	100%	Leasehold	2097	2012
15	Marriott Boston Long Wharf	Massachusetts	Marriott	412	3.01%	100%	Fee Simple		2007
16	Hyatt Regency Newport Beach	California	Hyatt	407	2.98%	100%	Leasehold	2048	2002
17	Marriott Tysons Corner	Virginia	Marriott	396	2.90%	100%	Fee Simple		2002
18	Marriott Houston	Texas	Marriott	390	2.85%	100%	Fee Simple		2002
19	Renaissance Long Beach	California	Marriott	374	2.74%	100%	Fee Simple		2005
20	Embassy Suites Chicago	Illinois	Hilton	368	2.69%	100%	Fee Simple		2002
21	Hilton Garden Inn Chicago Downtown/Magnificent Mile	Illinois	Hilton	361	2.64%	100%	Fee Simple		2012
22	Renaissance Westchester	New York	Marriott	348	2.55%	100%	Fee Simple		2010
23	Embassy Suites La Jolla	California	Hilton	340	2.49%	100%	Fee Simple		2006
24	Marriott Philadelphia	Pennsylvania	Marriott	289	2.11%	100%	Fee Simple		2002
25	Hilton New Orleans St. Charles	Louisiana	Hilton	252	1.84%	100%	Fee Simple		2013
26	Marriott Portland	Oregon	Marriott	249	1.82%	100%	Fee Simple		2000
27	Marriott Park City	Utah	Marriott	199	1.46%	100%	Fee Simple		1999
28	Courtyard by Marriott Los Angeles	California	Marriott	187	1.37%	100%	Leasehold	2096	1999
	Total portfolio			13,666	100%

(1) Assumes the full exercise of all lease extensions.

(2) Financial statements reflect a 100% economic interest in the Renaissance Orlando at SeaWorld®, of which the Company owns 85% of a joint venture that owns the leasehold interest in the hotel. Pursuant to certain partnership loans, the Company recognizes, and expects to continue to recognize, 100% of all economics from the property. In addition, the Company owns 100% of the fee interest in a wholly owned entity held outside the partnership.

(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 25

Supplemental Financial Information
November 1, 2016

PROPERTY-LEVEL OPERATING STATISTICS

PROPERTY-LEVEL OPERATING STATISTICS							Page 26

Supplemental Financial Information
November 1, 2016

Property-Level Operating Statistics

Q3 2016/2015

	Hotels sorted by number of rooms	ADR					Occupancy			RevPAR
		For the Three Months Ended September 30,					For the Three Months Ended September 30,			For the Three Months Ended September 30,
		2016		2015		Variance	2016	2015	Variance	2016		2015		Variance
1	Hilton San Diego Bayfront	$	240.06	$	228.37	5.1%	92.9%	87.5%	6.2%	$	223.02	$	199.82	11.6%
2	Boston Park Plaza	$	216.79	$	206.79	4.8%	94.0%	93.7%	0.3%	$	203.78	$	193.76	5.2%
3	Renaissance Washington DC	$	195.59	$	180.64	8.3%	81.5%	80.2%	1.6%	$	159.41	$	144.87	10.0%
4	Hyatt Regency San Francisco	$	297.66	$	299.05	-0.5%	92.3%	94.0%	-1.8%	$	274.74	$	281.11	-2.3%
5	Renaissance Orlando at SeaWorld ®	$	136.96	$	121.61	12.6%	81.1%	73.7%	10.0%	$	111.07	$	89.63	23.9%
6	Renaissance Harborplace	$	170.91	$	176.58	-3.2%	81.9%	72.3%	13.3%	$	139.98	$	127.67	9.6%
7	Renaissance Los Angeles Airport	$	163.83	$	158.51	3.4%	90.9%	88.7%	2.5%	$	148.92	$	140.60	5.9%
8	JW Marriott New Orleans	$	154.22	$	154.20	0.0%	80.1%	81.4%	-1.6%	$	123.53	$	125.52	-1.6%
9	Hilton North Houston	$	101.71	$	112.33	-9.5%	73.3%	83.5%	-12.2%	$	74.55	$	93.80	-20.5%
10	Hilton Times Square	$	296.98	$	319.75	-7.1%	99.6%	99.7%	-0.1%	$	295.79	$	318.79	-7.2%
11	Marriott Quincy	$	167.59	$	165.44	1.3%	86.5%	89.5%	-3.4%	$	144.97	$	148.07	-2.1%
12	Fairmont Newport Beach	$	163.77	$	165.55	-1.1%	83.3%	82.5%	1.0%	$	136.42	$	136.58	-0.1%
13	Hyatt Chicago Magnificent Mile	$	218.78	$	223.65	-2.2%	88.9%	89.0%	-0.1%	$	194.50	$	199.05	-2.3%
14	Marriott Boston Long Wharf	$	359.15	$	368.76	-2.6%	93.8%	92.7%	1.2%	$	336.88	$	341.84	-1.5%
15	Hyatt Regency Newport Beach	$	188.70	$	188.78	0.0%	91.3%	88.3%	3.4%	$	172.28	$	166.69	3.4%
16	Marriott Tysons Corner	$	138.84	$	140.11	-0.9%	83.4%	79.7%	4.6%	$	115.79	$	111.67	3.7%
17	Marriott Houston	$	99.82	$	117.45	-15.0%	76.5%	80.5%	-5.0%	$	76.36	$	94.55	-19.2%
18	Renaissance Long Beach	$	184.86	$	164.27	12.5%	84.8%	83.0%	2.2%	$	156.76	$	136.34	15.0%
19	Embassy Suites Chicago	$	230.71	$	235.07	-1.9%	92.6%	95.3%	-2.8%	$	213.64	$	224.02	-4.6%
20	Hilton Garden Inn Chicago Downtown/Magnificent Mile	$	202.90	$	210.62	-3.7%	89.3%	92.2%	-3.1%	$	181.19	$	194.19	-6.7%
21	Renaissance Westchester	$	158.87	$	144.38	10.0%	80.7%	86.0%	-6.2%	$	128.21	$	124.17	3.3%
22	Embassy Suites La Jolla	$	201.34	$	193.22	4.2%	93.0%	91.2%	2.0%	$	187.25	$	176.22	6.3%
23	Marriott Philadelphia	$	174.57	$	172.86	1.0%	76.8%	73.8%	4.1%	$	134.07	$	127.57	5.1%
24	Hilton New Orleans St. Charles	$	135.50	$	139.30	-2.7%	74.9%	78.6%	-4.7%	$	101.49	$	109.49	-7.3%
25	Marriott Portland	$	217.36	$	223.21	-2.6%	90.5%	93.8%	-3.5%	$	196.71	$	209.37	-6.0%
26	Marriott Park City	$	132.17	$	134.50	-1.7%	77.6%	64.1%	21.1%	$	102.56	$	86.21	19.0%
27	Courtyard by Marriott Los Angeles	$	189.05	$	181.10	4.4%	97.1%	96.8%	0.3%	$	183.57	$	175.30	4.7%
	Comparable Portfolio (2)	$	200.74	$	198.66	1.0%	86.9%	85.9%	1.2%	$	174.44	$	170.65	2.2%
	Add: Non-Comparable Hotel (3)
	Wailea Beach Marriott Resort & Spa (1)	$	248.93	$	259.70	-4.1%	57.6%	76.8%	-25.0%	$	143.38	$	199.45	-28.1%
	28 Hotel Portfolio (4)	$	202.03	$	200.84	0.6%	85.8%	85.5%	0.4%	$	173.34	$	171.72	0.9%

(1) Operating statistics for the third quarter of 2016 are impacted by a  major renovation at the Wailea Beach Marriott Resort & Spa.

(2) Comparable Portfolio includes 27 of the 28 hotels held for investment by the Company as of September 30, 2016. The Comparable Portfolio excludes the Wailea Beach Marriott Resort & Spa due to its extensive renovation during the fourth quarter of 2015 as well as all of 2016.

(3) Non-Comparable Hotel includes the results generated by the Wailea Beach Marriott Resort & Spa, which is considered non-comparable due to its extensive renovation during the fourth quarter of 2015 as well as all of 2016.

(4) 28 Hotel Portfolio includes all 28 hotels held for investment as of September 30, 2016.

PROPERTY-LEVEL OPERATING STATISTICS							Page 27

Supplemental Financial Information
November 1, 2016

Property-Level Operating Statistics

Q3 YTD 2016/2015

	Hotels sorted by number of rooms	ADR					Occupancy			RevPAR
		For the Nine Months Ended September 30,					For the Nine Months Ended September 30,			For the Nine Months Ended September 30,
		2016		2015		Variance	2016	2015	Variance	2016		2015		Variance
1	Hilton San Diego Bayfront	$	235.72	$	230.50	2.3%	89.3%	88.8%	0.6%	$	210.50	$	204.68	2.8%
2	Boston Park Plaza (1)	$	200.51	$	192.51	4.2%	78.1%	81.1%	-3.7%	$	156.60	$	156.13	0.3%
3	Renaissance Washington DC	$	219.87	$	213.40	3.0%	82.5%	80.9%	2.0%	$	181.39	$	172.64	5.1%
4	Hyatt Regency San Francisco	$	304.96	$	284.89	7.0%	91.1%	90.7%	0.4%	$	277.82	$	258.40	7.5%
5	Renaissance Orlando at SeaWorld ®	$	159.12	$	146.35	8.7%	81.6%	77.0%	6.0%	$	129.84	$	112.69	15.2%
6	Renaissance Harborplace	$	172.14	$	168.87	1.9%	77.4%	71.1%	8.9%	$	133.24	$	120.07	11.0%
7	Renaissance Los Angeles Airport	$	159.68	$	148.20	7.7%	90.4%	89.2%	1.3%	$	144.35	$	132.19	9.2%
8	JW Marriott New Orleans	$	192.03	$	193.45	-0.7%	83.3%	85.0%	-2.0%	$	159.96	$	164.43	-2.7%
9	Hilton North Houston	$	106.82	$	116.23	-8.1%	79.7%	84.7%	-5.9%	$	85.14	$	98.45	-13.5%
10	Hilton Times Square	$	273.23	$	289.92	-5.8%	99.2%	99.6%	-0.4%	$	271.04	$	288.76	-6.1%
11	Marriott Quincy	$	162.40	$	161.35	0.7%	80.3%	77.6%	3.5%	$	130.41	$	125.21	4.2%
12	Fairmont Newport Beach	$	161.58	$	160.88	0.4%	79.6%	79.7%	-0.1%	$	128.62	$	128.22	0.3%
13	Hyatt Chicago Magnificent Mile	$	202.40	$	206.14	-1.8%	79.7%	82.5%	-3.4%	$	161.31	$	170.07	-5.1%
14	Marriott Boston Long Wharf	$	319.00	$	326.91	-2.4%	87.1%	87.1%	0.0%	$	277.85	$	284.74	-2.4%
15	Hyatt Regency Newport Beach	$	177.60	$	172.14	3.2%	83.9%	86.2%	-2.7%	$	149.01	$	148.38	0.4%
16	Marriott Tysons Corner	$	145.92	$	148.41	-1.7%	81.9%	79.8%	2.6%	$	119.51	$	118.43	0.9%
17	Marriott Houston	$	104.99	$	122.74	-14.5%	84.6%	82.5%	2.5%	$	88.82	$	101.26	-12.3%
18	Renaissance Long Beach	$	186.11	$	166.56	11.7%	80.5%	81.1%	-0.7%	$	149.82	$	135.08	10.9%
19	Embassy Suites Chicago	$	204.92	$	215.03	-4.7%	87.7%	90.5%	-3.1%	$	179.71	$	194.60	-7.7%
20	Hilton Garden Inn Chicago Downtown/Magnificent Mile	$	183.82	$	191.65	-4.1%	79.9%	84.2%	-5.1%	$	146.87	$	161.37	-9.0%
21	Renaissance Westchester	$	153.69	$	144.42	6.4%	77.7%	80.7%	-3.7%	$	119.42	$	116.55	2.5%
22	Embassy Suites La Jolla	$	189.85	$	183.66	3.4%	86.2%	86.8%	-0.7%	$	163.65	$	159.42	2.7%
23	Marriott Philadelphia	$	169.11	$	174.38	-3.0%	73.0%	72.1%	1.2%	$	123.45	$	125.73	-1.8%
24	Hilton New Orleans St. Charles	$	170.93	$	173.85	-1.7%	84.1%	83.8%	0.4%	$	143.75	$	145.69	-1.3%
25	Marriott Portland	$	195.52	$	199.87	-2.2%	89.1%	87.4%	1.9%	$	174.21	$	174.69	-0.3%
26	Marriott Park City	$	171.26	$	173.10	-1.1%	69.8%	64.0%	9.1%	$	119.54	$	110.78	7.9%
27	Courtyard by Marriott Los Angeles	$	181.54	$	165.29	9.8%	97.4%	95.6%	1.9%	$	176.82	$	158.02	11.9%
	Comparable Portfolio (2)	$	198.27	$	195.61	1.4%	83.7%	83.5%	0.2%	$	165.95	$	163.33	1.6%
	Add: Non-Comparable Hotel (3)
	Wailea Beach Marriott Resort & Spa (1)	$	269.61	$	276.84	-2.6%	73.8%	85.8%	-14.0%	$	198.97	$	237.53	-16.2%
	28 Hotel Portfolio (4)	$	200.78	$	198.92	0.9%	83.3%	83.6%	-0.4%	$	167.25	$	166.30	0.6%

(1) Operating statistics for the first nine months of 2016 are impacted by major renovations at the Boston Park Plaza and the Wailea Beach Marriott Resort & Spa. Operating statistics for the first nine months of 2015 are impacted by a major renovation at the Boston Park Plaza.

(2) Comparable Portfolio includes 27 of the 28 hotels held for investment by the Company as of September 30, 2016. The Comparable Portfolio excludes the Wailea Beach Marriott Resort & Spa due to its extensive renovation during the fourth quarter of 2015 as well as all of 2016.

(3) Non-Comparable Hotel includes the results generated by the Wailea Beach Marriott Resort & Spa, which is considered non-comparable due to its extensive renovation during the fourth quarter of 2015 as well as all of 2016.

(4) 28 Hotel Portfolio includes all 28 hotels held for investment as of September 30, 2016.

PROPERTY-LEVEL OPERATING STATISTICS							Page 28

Supplemental Financial Information
November 1, 2016

OPERATING STATISTICS BY BRAND & GEOGRAPHY

OPERATING STATISTICS BY BRAND & GEOGRAPHY							Page 29

Supplemental Financial Information
November 1, 2016

Comparable Portfolio Operating Statistics by Brand
Q3 and YTD 2016/2015

		For the Three Months Ended September 30,
		2016					2015
	# of Hotels	Occ	ADR		RevPAR		Occ	ADR		RevPAR		RevPAR Change
Marriott (1)	15	83.7%	$	177.14	$	148.27	81.5%	$	173.69	$	141.56	4.7%
Hilton (2)	7	89.4%	$	217.64	$	194.57	89.6%	$	216.50	$	193.98	0.3%
Hyatt	3	91.2%	$	250.66	$	228.60	91.3%	$	253.52	$	231.46	-1.2%
Other (3)	2	90.9%	$	202.44	$	184.02	90.4%	$	195.63	$	176.85	4.1%
Comparable Portfolio (4)	27	86.9%	$	200.74	$	174.44	85.9%	$	198.66	$	170.65	2.2%
28 Hotel Portfolio (5)	28	85.8%	$	202.03	$	173.34	85.5%	$	200.84	$	171.72	0.9%
		For the Nine Months Ended September 30,
		2016					2015
	# of Hotels	Occ	ADR		RevPAR		Occ	ADR		RevPAR		RevPAR Change
Marriott (1)	15	82.3%	$	181.44	$	149.33	80.4%	$	178.34	$	143.39	4.1%
Hilton (2)	7	87.5%	$	207.84	$	181.86	88.8%	$	210.27	$	186.72	-2.6%
Hyatt	3	86.4%	$	249.73	$	215.77	87.5%	$	238.04	$	208.29	3.6%
Other (3)	2	78.5%	$	188.85	$	148.25	80.7%	$	183.24	$	147.87	0.3%
Comparable Portfolio (4)	27	83.7%	$	198.27	$	165.95	83.5%	$	195.61	$	163.33	1.6%
28 Hotel Portfolio (5)	28	83.3%	$	200.78	$	167.25	83.6%	$	198.92	$	166.30	0.6%

(1) Marriott excludes the Wailea Beach Marriott Resort & Spa due to its extensive renovation during the fourth quarter of 2015 as well as all of 2016.

(2) Hilton excludes the Doubletree Guest Suites Times Square sold December 18, 2015.

(3) Other includes the Fairmont Newport Beach and the Boston Park Plaza. Other excludes the Sheraton Cerritos sold May 10, 2016.

(4) Comparable Portfolio includes 27 of the 28 hotels held for investment by the Company as of September 30, 2016. The Comparable Portfolio excludes the Wailea Beach Marriott Resort & Spa due to its extensive renovation during the fourth quarter of 2015 as well as all of 2016.

(5) 28 Hotel Portfolio includes all 28 hotels held for investment as of September 30, 2016.

OPERATING STATISTICS BY BRAND & GEOGRAPHY							Page 30

Supplemental Financial Information
November 1, 2016

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

Note: Includes 27 hotel Comparable Portfolio

OPERATING STATISTICS BY BRAND & GEOGRAPHY							Page 31

Supplemental Financial Information
November 1, 2016

Comparable Portfolio Operating Statistics by Region
Q3 and YTD 2016/2015

		For the Three Months Ended September 30,
		2016					2015
	# of Hotels	Occ		ADR		RevPAR	Occ		ADR			RevPAR		RevPAR Change
California (1)	8	90.9%	$	219.78	$	199.78	88.7%	$	213.99		$	189.81		5.3%
Other West (2)	4	78.2%	$	131.02	$	102.46	81.6%	$	140.53		$	114.67		-10.6%
Midwest	3	90.2%	$	217.76	$	196.42	92.1%	$	223.34		$	205.70		-4.5%
East (3)	12	85.5%	$	197.22	$	168.62	83.8%	$	194.68		$	163.14		3.4%
Comparable Portfolio (4)	27	86.9%	$	200.74	$	174.44	85.9%	$	198.66		$	170.65		2.2%
28 Hotel Portfolio (5)	28	85.8%	$	202.03	$	173.34	85.5%	$	200.84		$	171.72		0.9%
		For the Nine Months Ended September 30,
		2016					2015
	# of Hotels	Occ		ADR		RevPAR	Occ		ADR			RevPAR	RevPAR Change
California (1)	8	87.6%	$	217.43	$	190.47	87.5%	$	207.04	$		181.16	5.1%
Other West (2)	4	81.4%	$	132.93	$	108.21	81.4%	$	141.89	$		115.50	-6.3%
Midwest	3	82.4%	$	197.59	$	162.81	85.6%	$	204.67	$		175.20	-7.1%
East (3)	12	81.9%	$	198.17	$	162.30	81.0%	$	196.82	$		159.42	1.8%
Comparable Portfolio (4)	27	83.7%	$	198.27	$	165.95	83.5%	$	195.61	$		163.33	1.6%
28 Hotel Portfolio (5)	28	83.3%	$	200.78	$	167.25	83.6%	$	198.92	$		166.30	0.6%

(1) California excludes the Sheraton Cerritos sold May 10, 2016.

(2) Other West excludes the Wailea Beach Marriott Resort & Spa due to its extensive renovation during the fourth quarter of 2015 as well as all of 2016.

(3) East excludes the Doubletree Guest Suites Times Square sold December 18, 2015.

(4) Comparable Portfolio includes 27 of the 28 hotels held for investment by the Company as of September 30, 2016. The Comparable Portfolio excludes the Wailea Beach Marriott Resort & Spa due to its extensive renovation during the fourth quarter of 2015 as well as all of 2016.

(5) 28 Hotel Portfolio includes all 28 hotels held for investment as of September  30, 2016.

OPERATING STATISTICS BY BRAND & GEOGRAPHY							Page 32

Supplemental Financial Information
November 1, 2016

PROPERTY-LEVEL ADJUSTED EBITDA & ADJUSTED EBITDA MARGINS

PROPERTY-LEVEL ADJUSTED EBITDA & ADJUSTED EBITDA MARGINS							Page 33

Supplemental Financial Information
November 1, 2016

Property-Level Adjusted EBITDA
Q3 and YTD 2016/2015

	Hotels sorted by number of rooms		For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	(In thousands)		2016		2015			2016		2015
			Hotel Adjusted EBITDA (2)		Hotel Adjusted EBITDA (2)	% Change		Hotel Adjusted EBITDA (2)		Hotel Adjusted EBITDA (2)	% Change
1	Hilton San Diego Bayfront (1) (3)	$	13,868	$	13,378	4%	$	38,409	$	42,772	-10%
2	Boston Park Plaza (3) (4)		9,421		8,571	10%		15,908		16,079	-1%
3	Renaissance Washington DC (3)		5,009		3,585	40%		18,865		17,168	10%
4	Hyatt Regency San Francisco		7,170		8,538	-16%		24,211		21,823	11%
5	Renaissance Orlando at SeaWorld ® (1)		5,370		2,686	100%		20,333		15,377	32%
6	Renaissance Harborplace (4)		3,436		3,716	-8%		9,859		8,569	15%
7	Renaissance Los Angeles Airport		2,505		2,409	4%		7,283		6,250	17%
8	JW Marriott New Orleans		2,300		1,881	22%		10,647		10,311	3%
9	Hilton North Houston (4)		456		1,184	-61%		3,330		4,323	-23%
10	Hilton Times Square		3,120		3,637	-14%		6,809		8,979	-24%
11	Marriott Quincy (4)		2,724		3,328	-18%		7,306		7,478	-2%
12	Fairmont Newport Beach (3) (4)		2,225		2,030	10%		6,259		6,464	-3%
13	Hyatt Chicago Magnificent Mile (3) (4)		3,937		2,474	59%		8,027		5,658	42%
14	Marriott Boston Long Wharf		8,073		7,874	3%		18,081		18,357	-2%
15	Hyatt Regency Newport Beach		3,522		3,524	0%		8,209		8,336	-2%
16	Marriott Tysons Corner		1,747		1,584	10%		5,644		5,345	6%
17	Marriott Houston (4)		639		1,006	-36%		2,909		3,845	-24%
18	Renaissance Long Beach		2,410		1,952	23%		6,962		5,864	19%
19	Embassy Suites Chicago (3) (4)		3,752		3,746	0%		9,333		8,773	6%
20	Hilton Garden Inn Chicago Downtown/Magnificent Mile (3) (4)		2,691		2,547	6%		6,504		6,116	6%
21	Renaissance Westchester		1,022		997	3%		2,621		2,971	-12%
22	Embassy Suites La Jolla (4)		3,155		2,874	10%		7,771		7,663	1%
23	Marriott Philadelphia		1,502		1,415	6%		3,870		4,115	-6%
24	Hilton New Orleans St. Charles		765		978	-22%		4,401		4,550	-3%
25	Marriott Portland		2,629		2,881	-9%		6,615		6,593	0%
26	Marriott Park City		683		411	66%		2,510		2,273	10%
27	Courtyard by Marriott Los Angeles		1,427		1,279	12%		4,019		3,407	18%
	Comparable Portfolio (5)		95,558		90,485	6%		266,695		259,459	3%
	Add: Non-Comparable Hotel (6)
	Wailea Beach Marriott Resort & Spa (3)		656		4,119	-84%		9,843		17,526	-44%
	28 Hotel Portfolio (7)	$	96,214	$	94,604	2%	$	276,538	$	276,985	0%

*Footnotes on page 35

PROPERTY-LEVEL ADJUSTED EBITDA & ADJUSTED EBITDA MARGINS							Page 34

Supplemental Financial Information
November 1, 2016

Property-Level Adjusted EBITDA
Q3 and YTD 2016/2015 Footnotes

(1) Reflects 100% of the operating results for the Hilton San Diego Bayfront and Renaissance Orlando at SeaWorld®.

(2) Reconciliations to Net Income (Loss) provided on pages 38, 39, 41 and 42.

(3) Hotel Adjusted EBITDA for both the third quarter and first nine months of 2016 is impacted by major renovations at the Boston Park Plaza and/or the Wailea Beach Marriott Resort & Spa. Hotel Adjusted EBITDA for the third quarter of 2016 is impacted by a total of $0.2 million in non-current year property tax credits, net of appeal fees, received at the following hotels: Hyatt Chicago Magnificent Mile $19,000; and Renaissance Washington DC $0.2 million. Hotel Adjusted EBITDA for the first nine months of 2016 is impacted by a total of $4.3 million in non-current year property tax credits (assessments), net of appeal fees, received at the following hotels:  Boston Park Plaza $(3,000); Embassy Suites Chicago $0.6 million; Fairmont Newport Beach $26,000; Hilton Garden Inn Chicago Downtown/Magnificent Mile $0.9 million; Hilton San Diego Bayfront $(0.1) million; Hyatt Chicago Magnificent Mile $2.4 million; and Renaissance Washington DC $0.3 million.

(4) Hotel Adjusted EBITDA for the third quarter of 2015 is impacted by a total of $0.8 million in non-current year property tax credits, net of appeal fees, received at the following hotels: Hyatt Chicago Magnificent Mile $0.6 million; Marriott Quincy $34,000; and Renaissance Harborplace $0.1 million. Hotel Adjusted EBITDA for the nine months ended September 30, 2015 is impacted by a major renovation at the Boston Park Plaza, as well as by a total of $0.9 million in non-current year property tax credits (assessments), net of appeal fees, received at the following hotels: Embassy Suites Chicago $(35,000); Embassy Suites La Jolla $11,000; Fairmont Newport Beach $27,000; Hilton Garden Inn Chicago Downtown/Magnificent Mile $(42,000); Hilton North Houston $0.1 million; Hyatt Chicago Magnificent Mile $0.6 million; Marriott Houston $0.1 million; Marriott Quincy $34,000; and Renaissance Harborplace $0.1 million.

(5) Comparable Portfolio includes 27 of the 28 hotels held for investment by the Company as of September 30, 2016. The Comparable Portfolio excludes the Wailea Beach Marriott Resort & Spa due to its extensive renovation during the fourth quarter of 2015 as well as all of 2016.

(6) Non-Comparable Hotel includes the results generated by the Wailea Beach Marriott Resort & Spa, which is considered non-comparable due to its extensive renovation during the fourth quarter of 2015 as well as all of 2016.

(7) 28 Hotel Portfolio includes all 28 hotels held for investment as of September 30, 2016.

PROPERTY-LEVEL ADJUSTED EBITDA & ADJUSTED EBITDA MARGINS							Page 35

Supplemental Financial Information
November 1, 2016

Property-Level Adjusted EBITDA Margins
Q3 and YTD 2016/2015

	Hotels sorted by number of rooms	For the Three Months Ended September 30,			For the Nine Months Ended September 30,
		2016	2015	Change in	2016	2015	Change in
		Hotel Adjusted EBITDA Margin	Hotel Adjusted EBITDA Margin	bps	Hotel Adjusted EBITDA Margin	Hotel Adjusted EBITDA Margin	bps
1	Hilton San Diego Bayfront (1) (2)	36.1%	37.6%	(150) bps	34.7%	38.6%	(390) bps
2	Boston Park Plaza (2) (3)	36.9%	36.1%	80 bps	26.1%	28.5%	(240) bps
3	Renaissance Washington DC (2)	26.5%	21.0%	550 bps	29.9%	28.3%	160 bps
4	Hyatt Regency San Francisco	26.3%	30.3%	(400) bps	28.7%	27.6%	110 bps
5	Renaissance Orlando at SeaWorld ® (1)	30.7%	19.2%	1,150 bps	33.9%	30.0%	390 bps
6	Renaissance Harborplace (3)	28.1%	32.3%	(420) bps	27.9%	26.8%	110 bps
7	Renaissance Los Angeles Airport	29.7%	29.2%	50 bps	28.7%	26.5%	220 bps
8	JW Marriott New Orleans	30.2%	24.3%	590 bps	37.3%	35.0%	230 bps
9	Hilton North Houston (3)	10.0%	20.1%	(1,010) bps	20.1%	23.4%	(330) bps
10	Hilton Times Square	23.1%	25.0%	(190) bps	18.4%	22.5%	(410) bps
11	Marriott Quincy (3)	31.8%	36.3%	(450) bps	30.4%	31.6%	(120) bps
12	Fairmont Newport Beach (2) (3)	26.6%	24.1%	250 bps	25.1%	26.0%	(90) bps
13	Hyatt Chicago Magnificent Mile (2) (3)	39.6%	23.6%	1,600 bps	31.8%	21.1%	1,070 bps
14	Marriott Boston Long Wharf	46.5%	45.8%	70 bps	40.9%	41.4%	(50) bps
15	Hyatt Regency Newport Beach	30.6%	31.7%	(110) bps	27.0%	27.7%	(70) bps
16	Marriott Tysons Corner	31.7%	30.2%	150 bps	33.2%	31.9%	130 bps
17	Marriott Houston (3)	18.1%	23.9%	(580) bps	24.2%	28.3%	(410) bps
18	Renaissance Long Beach	33.3%	29.5%	380 bps	32.4%	29.9%	250 bps
19	Embassy Suites Chicago (2) (3)	45.4%	43.2%	220 bps	44.0%	38.7%	530 bps
20	Hilton Garden Inn Chicago Downtown/Magnificent Mile (2) (3)	40.8%	36.3%	450 bps	40.3%	35.0%	530 bps
21	Renaissance Westchester	17.7%	17.2%	50 bps	15.8%	17.7%	(190) bps
22	Embassy Suites La Jolla (3)	46.3%	45.4%	90 bps	43.3%	44.2%	(90) bps
23	Marriott Philadelphia	31.6%	31.2%	40 bps	28.4%	29.4%	(100) bps
24	Hilton New Orleans St. Charles	28.5%	33.4%	(490) bps	39.6%	40.1%	(50) bps
25	Marriott Portland	51.5%	52.6%	(110) bps	48.1%	47.5%	60 bps
26	Marriott Park City	24.1%	17.9%	620 bps	28.3%	27.4%	90 bps
27	Courtyard by Marriott Los Angeles	38.7%	36.3%	240 bps	37.8%	35.6%	220 bps
	Comparable Portfolio (4)	32.7%	31.7%	100 bps	31.3%	31.1%	20 bps
	Add: Non-Comparable Hotel (5)
	Wailea Beach Marriott Resort & Spa (2)	6.0%	28.5%	(2,250) bps	22.6%	35.2%	(1,260) bps
	28 Hotel Portfolio (6)	31.7%	31.5%	15 bps	30.9%	31.4%	(50) bps
	Comparable Portfolio, excluding prior year property tax adjustments, net (7)	32.6%	31.4%	120 bps	30.8%	31.0%	(20) bps
	28 Hotel Portfolio, excluding prior year property tax adjustments, net (8)	31.6%	31.3%	30 bps	30.4%	31.3%	(90) bps

*Footnotes on page 37

PROPERTY-LEVEL ADJUSTED EBITDA & ADJUSTED EBITDA MARGINS							Page 36

Supplemental Financial Information
November 1, 2016

Property-Level Adjusted EBITDA Margins
Q3 and YTD 2016/2015 Footnotes

(1) Reflects 100% of the operating results for the Hilton San Diego Bayfront and Renaissance Orlando at SeaWorld®.

(2) Hotel Adjusted EBITDA Margins for both the third quarter and first nine months of 2016 are impacted by major renovations at the Boston Park Plaza and/or the Wailea Beach Marriott Resort & Spa. Hotel Adjusted EBITDA Margins for the third quarter of 2016 are impacted by a total of $0.2 million in non-current year property tax credits, net of appeal fees, received at the following hotels: Hyatt Chicago Magnificent Mile $19,000; and Renaissance Washington DC $0.2 million. Hotel Adjusted EBITDA Margins for the first nine months of 2016 are impacted by a total of $4.3 million in non-current year property tax credits (assessments), net of appeal fees, received at the following hotels:  Boston Park Plaza $(3,000); Embassy Suites Chicago $0.6 million; Fairmont Newport Beach $26,000; Hilton Garden Inn Chicago Downtown/Magnificent Mile $0.9 million; Hilton San Diego Bayfront $(0.1) million; Hyatt Chicago Magnificent Mile $2.4 million; and Renaissance Washington DC $0.3 million.

(3) Hotel Adjusted EBITDA Margins for the third quarter of 2015 are impacted by a total of $0.8 million in non-current year property tax credits, net of appeal fees, received at the following hotels: Hyatt Chicago Magnificent Mile $0.6 million; Marriott Quincy $34,000; and Renaissance Harborplace $0.1 million. Hotel Adjusted EBITDA Margins for the nine months ended September 30, 2015 are impacted by a major renovation at the Boston Park Plaza, as well as by a total of $0.9 million in non-current year property tax credits (assessments), net of appeal fees, received at the following hotels: Embassy Suites Chicago $(35,000); Embassy Suites La Jolla $11,000; Fairmont Newport Beach $27,000; Hilton Garden Inn Chicago Downtown/Magnificent Mile $(42,000); Hilton North Houston $0.1 million; Hyatt Chicago Magnificent Mile $0.6 million; Marriott Houston $0.1 million; Marriott Quincy $34,000; and Renaissance Harborplace $0.1 million.

(4) Comparable Portfolio includes 27 of the 28 hotels held for investment by the Company as of September 30, 2016. The Comparable Portfolio excludes the Wailea Beach Marriott Resort & Spa due to its extensive renovation during the fourth quarter of 2015 as well as all of 2016.

(5) Non-Comparable Hotel includes the results generated by the Wailea Beach Marriott Resort & Spa, which is considered non-comparable due to its extensive renovation during the fourth quarter of 2015 as well as all of 2016.

(6) 28 Hotel Portfolio includes all 28 hotels held for investment as of September 30, 2016.

(7) Comparable Portfolio, excluding prior year property tax adjustments, net represents the 27 hotel Comparable Portfolio adjusted to exclude the prior year property tax related items noted in Footnotes 2 and 3 above.

(8) 28 Hotel Portfolio, excluding prior year property tax adjustments, net represents the 28 Hotel Portfolio adjusted to exclude the prior year property tax related items noted in Footnotes 2 and 3 above.

PROPERTY-LEVEL ADJUSTED EBITDA & ADJUSTED EBITDA MARGINS							Page 37

Supplemental Financial Information
November 1, 2016

Property-Level Adjusted EBITDA Reconciliation Q3 2016

	Hotels sorted by number of rooms		For the Three Months Ended September 30, 2016
	(In thousands)						Plus:		Plus:		Plus:		Equals:		Hotel
		Total			Net Income /		Other						Hotel		Adjusted EBITDA
		Revenues			(Loss)		Adjustments (2)		Depreciation		Interest Expense		Adjusted EBITDA		Margins
1	Hilton San Diego Bayfront (1)	$		38,428	$	8,230	$	450	$	3,490	$	1,698	$	13,868	36.1%
2	Boston Park Plaza			25,524		4,810		—		4,611		—		9,421	36.9%
3	Renaissance Washington DC (3)			18,926		710		(10)		2,496		1,813		5,009	26.5%
4	Hyatt Regency San Francisco			27,299		3,582		—		3,588		—		7,170	26.3%
5	Renaissance Orlando at SeaWorld ® (1)			17,520		3,147		—		2,223		—		5,370	30.7%
6	Renaissance Harborplace			12,219		1,885		—		1,551		—		3,436	28.1%
7	Renaissance Los Angeles Airport			8,435		1,783		—		722		—		2,505	29.7%
8	JW Marriott New Orleans			7,613		(206)		1		1,563		942		2,300	30.2%
9	Hilton North Houston			4,545		(368)		—		824		—		456	10.0%
10	Hilton Times Square			13,507		(670)		76		2,487		1,227		3,120	23.1%
11	Marriott Quincy			8,566		1,598		—		1,126		—		2,724	31.8%
12	Fairmont Newport Beach			8,373		1,147		—		1,078		—		2,225	26.6%
13	Hyatt Chicago Magnificent Mile (3)			9,941		2,510		—		1,427		—		3,937	39.6%
14	Marriott Boston Long Wharf			17,358		3,453		45		2,062		2,513		8,073	46.5%
15	Hyatt Regency Newport Beach			11,518		2,646		—		876		—		3,522	30.6%
16	Marriott Tysons Corner			5,506		973		—		774		—		1,747	31.7%
17	Marriott Houston			3,529		67		—		572		—		639	18.1%
18	Renaissance Long Beach			7,234		1,623		—		787		—		2,410	33.3%
19	Embassy Suites Chicago			8,269		1,896		—		899		957		3,752	45.4%
20	Hilton Garden Inn Chicago Downtown/Magnificent Mile			6,602		1,930		—		761		—		2,691	40.8%
21	Renaissance Westchester			5,779		164		—		858		—		1,022	17.7%
22	Embassy Suites La Jolla			6,812		1,577		—		901		677		3,155	46.3%
23	Marriott Philadelphia			4,756		887		—		615		—		1,502	31.6%
24	Hilton New Orleans St. Charles			2,686		164		—		601		—		765	28.5%
25	Marriott Portland			5,109		2,232		—		397		—		2,629	51.5%
26	Marriott Park City			2,837		185		—		498		—		683	24.1%
27	Courtyard by Marriott Los Angeles			3,689		1,142		—		285		—		1,427	38.7%
	Comparable Portfolio (4)	$		292,580	$	47,097	$	562	$	38,072	$	9,827	$	95,558	32.7%
	Add: Non-Comparable Hotel (5)
	Wailea Beach Marriott Resort & Spa (3)			10,934		(1,552)		(17)		2,225		—		656	6.0%
	Actual Portfolio (6)	$		303,514	$	45,545	$	545	$	40,297	$	9,827	$	96,214	31.7%

*Footnotes on page 40

PROPERTY-LEVEL ADJUSTED EBITDA & ADJUSTED EBITDA MARGINS							Page 38

Supplemental Financial Information
November 1, 2016

Property-Level Adjusted EBITDA Reconciliation Q3 2015

	Hotels sorted by number of rooms		For the Three Months Ended September 30, 2015
	(In thousands)					Plus:		Plus:		Plus:		Equals:		Hotel
		Total		Net Income /		Other						Hotel		Adjusted EBITDA
		Revenues		(Loss)		Adjustments(7)		Depreciation		Interest Expense		Adjusted EBITDA		Margins
1	Hilton San Diego Bayfront (1)	$	35,552	$	7,928	$	450	$	3,456	$	1,544	$	13,378	37.6%
2	Boston Park Plaza		23,733		3,508		—		3,755		1,308		8,571	36.1%
3	Renaissance Washington DC		17,111		(1,072)		366		2,442		1,849		3,585	21.0%
4	Hyatt Regency San Francisco		28,157		5,348		—		3,190		—		8,538	30.3%
5	Renaissance Orlando at SeaWorld ® (1)		13,988		(542)		—		2,174		1,054		2,686	19.2%
6	Renaissance Harborplace (3)		11,498		909		—		1,652		1,155		3,716	32.3%
7	Renaissance Los Angeles Airport		8,241		1,718		—		691		—		2,409	29.2%
8	JW Marriott New Orleans		7,730		(499)		1		1,421		958		1,881	24.3%
9	Hilton North Houston		5,892		(142)		—		870		456		1,184	20.1%
10	Hilton Times Square		14,522		(208)		81		2,528		1,236		3,637	25.0%
11	Marriott Quincy (3)		9,168		2,209		—		1,119		—		3,328	36.3%
12	Fairmont Newport Beach		8,415		944		—		1,086		—		2,030	24.1%
13	Hyatt Chicago Magnificent Mile (3)		10,481		1,058		—		1,416		—		2,474	23.6%
14	Marriott Boston Long Wharf		17,185		3,278		—		2,082		2,514		7,874	45.8%
15	Hyatt Regency Newport Beach		11,128		2,650		—		874		—		3,524	31.7%
16	Marriott Tysons Corner		5,242		792		—		792		—		1,584	30.2%
17	Marriott Houston		4,216		408		—		598		—		1,006	23.9%
18	Renaissance Long Beach		6,613		1,205		—		747		—		1,952	29.5%
19	Embassy Suites Chicago		8,664		1,843		—		921		982		3,746	43.2%
20	Hilton Garden Inn Chicago Downtown/Magnificent Mile		7,026		1,809		—		738		—		2,547	36.3%
21	Renaissance Westchester		5,780		172		—		825		—		997	17.2%
22	Embassy Suites La Jolla		6,327		1,327		—		858		689		2,874	45.4%
23	Marriott Philadelphia		4,536		918		20		477		—		1,415	31.2%
24	Hilton New Orleans St. Charles		2,927		305		88		585		—		978	33.4%
25	Marriott Portland		5,480		2,468		—		413		—		2,881	52.6%
26	Marriott Park City		2,293		(19)		—		430		—		411	17.9%
27	Courtyard by Marriott Los Angeles		3,520		986		—		293		—		1,279	36.3%
	Comparable Portfolio (4)		285,425		39,301		1,006		36,433		13,745		90,485	31.7%
	Add: Non-Comparable Hotel (5)
	Wailea Beach Marriott Resort & Spa		14,467		1,650		—		2,469		—		4,119	28.5%
	Add: Sold Hotels (8)
	Doubletree Guest Suites Times Square (1)		19,097		2,279		991		1,618		1,712		6,600	34.6%
	Sheraton Cerritos		3,530		564		—		401		—		965	27.3%
	Actual Portfolio (6)	$	322,519	$	43,794	$	1,997	$	40,921	$	15,457	$	102,169	31.7%

*Footnotes on page 40

PROPERTY-LEVEL ADJUSTED EBITDA & ADJUSTED EBITDA MARGINS							Page 39

Supplemental Financial Information
November 1, 2016

Property-Level Adjusted EBITDA Reconciliation
Q3 2016/2015 Footnotes

(1) Includes 100% of the operating results for the Doubletree Guest Suites Times Square, Hilton San Diego Bayfront and Renaissance Orlando at SeaWorld®.

(2) Other Adjustments for the third quarter of 2016 include: a total of $18,000 in property-level restructuring and severance costs at the Marriott Boston Long Wharf, the Renaissance Washington DC and the Wailea Beach Marriott Resort & Spa; a total of $0.1 million in amortization of lease intangibles at the Hilton Times Square and JW Marriott New Orleans; and a total of $0.5 million in noncash straight-line lease expense at the Hilton San Diego Bayfront, Hilton Times Square and JW Marriott New Orleans.

(3) Hotel Adjusted EBITDA for the third quarter of 2016 is impacted by a major renovation at the Wailea Beach Marriott Resort & Spa, and by a total of $0.2 million in non-current year property tax credits, net of appeal fees, received at the following hotels: Hyatt Chicago Magnificent Mile $19,000; and Renaissance Washington DC $0.2 million. Hotel Adjusted EBITDA for the third quarter of 2015 is impacted by a total of $0.8 million in non-current year property tax credits, net of appeal fees, received at the following hotels: Hyatt Chicago Magnificent Mile $0.6 million; Marriott Quincy $34,000; and Renaissance Harborplace $0.1 million.

(4) Comparable Portfolio includes 27 of the 28 hotels held for investment by the Company as of September 30, 2016. The Comparable Portfolio excludes the Wailea Beach Marriott Resort & Spa due to its extensive renovation during the fourth quarter of 2015 as well as all of 2016.

(5) Non-Comparable Hotel includes the results generated by the Wailea Beach Marriott Resort & Spa, which is considered non-comparable due to its extensive renovation during the fourth quarter of 2015 as well as all of 2016.

(6) Actual Portfolio for the third quarter of 2016 includes all 28 hotels held for investment by the Company as of September 30, 2016. Actual Portfolio for the third quarter of 2015 includes all 30 hotels held for investment by the Company as of September 30, 2015.

(7) Other Adjustments for the three months ended September 30, 2015 include: a total of $0.5 million in  property-level restructuring, severance and management transition costs at the Hilton New Orleans St. Charles, the Marriott Philadelphia and the Renaissance Washington DC; 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 noncash straight-line lease expense at the Doubletree Guest Suites Times Square, Hilton San Diego Bayfront, Hilton Times Square and JW Marriott New Orleans.

(8) Sold Hotels for the third quarter of 2015 include the results generated by the Sheraton Cerritos, sold May 10, 2016, and the Doubletree Guest Suites Times Square, sold December 18, 2015. 

PROPERTY-LEVEL ADJUSTED EBITDA & ADJUSTED EBITDA MARGINS							Page 40

Supplemental Financial Information
November 1, 2016

Property-Level Adjusted EBITDA Reconciliation Q3 YTD 2016

	Hotels sorted by number of rooms		For the Nine Months Ended September 30, 2016
	(In thousands)					Plus:		Plus:		Plus:		Equals:		Hotel
		Total		Net Income /		Other						Hotel		Adjusted EBITDA
		Revenues		(Loss)		Adjustments (2)		Depreciation		Interest Expense		Adjusted EBITDA		Margins
1	Hilton San Diego Bayfront (1) (3)	$	110,846	$	21,625	$	1,350	$	10,428	$	5,006	$	38,409	34.7%
2	Boston Park Plaza (3)		61,058		2,917		—		12,554		437		15,908	26.1%
3	Renaissance Washington DC (3)		63,175		5,915		(10)		7,493		5,467		18,865	29.9%
4	Hyatt Regency San Francisco		84,260		12,852		914		10,445		—		24,211	28.7%
5	Renaissance Orlando at SeaWorld ® (1)		59,980		11,976		—		6,647		1,710		20,333	33.9%
6	Renaissance Harborplace		35,327		5,117		—		4,742		—		9,859	27.9%
7	Renaissance Los Angeles Airport		25,400		5,151		—		2,132		—		7,283	28.7%
8	JW Marriott New Orleans		28,551		3,195		(2)		4,635		2,819		10,647	37.3%
9	Hilton North Houston		16,592		801		—		2,529		—		3,330	20.1%
10	Hilton Times Square		36,935		(5,092)		782		7,491		3,628		6,809	18.4%
11	Marriott Quincy		24,045		3,931		—		3,375		—		7,306	30.4%
12	Fairmont Newport Beach (3)		24,923		3,069		—		3,190		—		6,259	25.1%
13	Hyatt Chicago Magnificent Mile (3)		25,262		3,735		—		4,292		—		8,027	31.8%
14	Marriott Boston Long Wharf		44,220		4,337		45		6,213		7,486		18,081	40.9%
15	Hyatt Regency Newport Beach		30,443		5,477		—		2,732		—		8,209	27.0%
16	Marriott Tysons Corner		16,988		3,301		—		2,343		—		5,644	33.2%
17	Marriott Houston		12,033		1,110		—		1,799		—		2,909	24.2%
18	Renaissance Long Beach		21,469		4,640		—		2,322		—		6,962	32.4%
19	Embassy Suites Chicago (3)		21,212		3,756		—		2,707		2,870		9,333	44.0%
20	Hilton Garden Inn Chicago Downtown/Magnificent Mile (3)		16,129		4,240		—		2,264		—		6,504	40.3%
21	Renaissance Westchester		16,598		57		—		2,564		—		2,621	15.8%
22	Embassy Suites La Jolla		17,943		3,038		—		2,707		2,026		7,771	43.3%
23	Marriott Philadelphia		13,631		2,129		—		1,741		—		3,870	28.4%
24	Hilton New Orleans St. Charles		11,122		2,543		—		1,858		—		4,401	39.6%
25	Marriott Portland		13,761		5,432		—		1,183		—		6,615	48.1%
26	Marriott Park City		8,881		1,036		—		1,474		—		2,510	28.3%
27	Courtyard by Marriott Los Angeles		10,624		3,149		—		870		—		4,019	37.8%
	Comparable Portfolio (4)	$	851,408	$	119,437	$	3,079	$	112,730	$	31,449	$	266,695	31.3%
	Add: Non-Comparable Hotel (5)
	Wailea Beach Marriott Resort & Spa (3)		43,492		1,285		1,101		7,457		—		9,843	22.6%
	Add: Sold Hotel (6)
	Sheraton Cerritos		4,846		876		—		528		—		1,404	29.0%
	Actual Portfolio (7)	$	899,746	$	121,598	$	4,180	$	120,715	$	31,449	$	277,942	30.9%

*Footnotes on page 43

PROPERTY-LEVEL ADJUSTED EBITDA & ADJUSTED EBITDA MARGINS							Page 41

Supplemental Financial Information
November 1, 2016

Property-Level Adjusted EBITDA Reconciliation Q3 YTD 2015

	Hotels sorted by number of rooms		For the Nine Months Ended September 30, 2015
	(In thousands)					Plus:		Plus:		Plus:		Equals:		Hotel
		Total		Net Income /		Other						Hotel		Adjusted EBITDA
		Revenues		(Loss)		Adjustments(8)		Depreciation		Interest Expense		Adjusted EBITDA		Margins
1	Hilton San Diego Bayfront (1)	$	110,753	$	26,564	$	1,350	$	10,262	$	4,596	$	42,772	38.6%
2	Boston Park Plaza (3)		56,462		633		983		10,565		3,898		16,079	28.5%
3	Renaissance Washington DC		60,698		3,906		366		7,323		5,573		17,168	28.3%
4	Hyatt Regency San Francisco		79,010		12,472		—		9,351		—		21,823	27.6%
5	Renaissance Orlando at SeaWorld ® (1)		51,290		5,573		—		6,651		3,153		15,377	30.0%
6	Renaissance Harborplace (3)		32,014		40		—		5,067		3,462		8,569	26.8%
7	Renaissance Los Angeles Airport		23,628		4,198		—		2,052		—		6,250	26.5%
8	JW Marriott New Orleans		29,431		3,321		(3)		4,134		2,859		10,311	35.0%
9	Hilton North Houston (3)		18,462		291		—		2,671		1,361		4,323	23.4%
10	Hilton Times Square		39,937		(2,529)		251		7,582		3,675		8,979	22.5%
11	Marriott Quincy (3)		23,695		4,130		—		3,348		—		7,478	31.6%
12	Fairmont Newport Beach (3)		24,902		3,147		—		3,317		—		6,464	26.0%
13	Hyatt Chicago Magnificent Mile (3)		26,812		1,326		—		4,332		—		5,658	21.1%
14	Marriott Boston Long Wharf		44,371		4,633		—		6,265		7,459		18,357	41.4%
15	Hyatt Regency Newport Beach		30,132		5,741		—		2,595		—		8,336	27.7%
16	Marriott Tysons Corner		16,767		2,222		—		2,392		731		5,345	31.9%
17	Marriott Houston (3)		13,608		1,705		—		1,765		375		3,845	28.3%
18	Renaissance Long Beach		19,580		3,571		—		2,293		—		5,864	29.9%
19	Embassy Suites Chicago (3)		22,694		3,085		—		2,756		2,932		8,773	38.7%
20	Hilton Garden Inn Chicago Downtown/Magnificent Mile (3)		17,460		3,907		—		2,209		—		6,116	35.0%
21	Renaissance Westchester		16,791		482		—		2,489		—		2,971	17.7%
22	Embassy Suites La Jolla (3)		17,350		3,012		—		2,598		2,053		7,663	44.2%
23	Marriott Philadelphia		14,018		2,209		20		1,440		446		4,115	29.4%
24	Hilton New Orleans St. Charles		11,358		3,086		88		1,376		—		4,550	40.1%
25	Marriott Portland		13,887		5,364		—		1,229		—		6,593	47.5%
26	Marriott Park City		8,281		706		—		1,321		246		2,273	27.4%
27	Courtyard by Marriott Los Angeles		9,559		2,501		—		906		—		3,407	35.6%
	Comparable Portfolio (4)		832,950		105,296		3,055		108,289		42,819		259,459	31.1%
	Add: Non-Comparable Hotel (5)
	Wailea Beach Marriott Resort & Spa		49,848		10,126		—		7,400		—		17,526	35.2%
	Add: Sold Hotels (6)
	Doubletree Guest Suites Times Square (1)		48,918		1,059		2,977		4,789		5,097		13,922	28.5%
	Sheraton Cerritos		10,314		1,761		—		1,229		—		2,990	29.0%
	Actual Portfolio (7)	$	942,030	$	118,242	$	6,032	$	121,707	$	47,916	$	293,897	31.2%

*Footnotes on page 43

PROPERTY-LEVEL ADJUSTED EBITDA & ADJUSTED EBITDA MARGINS							Page 42

Supplemental Financial Information
November 1, 2016

Property-Level Adjusted EBITDA Reconciliation
Q3 YTD 2016/2015 Footnotes

(1) Includes 100% of the operating results for the Doubletree Guest Suites Times Square, Hilton San Diego Bayfront and Renaissance Orlando at SeaWorld®.

(2) Other Adjustments for the nine months ended September 30, 2016 include a total of $1.6 million in property-level restructuring, severance and management transition costs at the following hotels: Hilton Times Square $0.5 million; Hyatt Regency San Francisco $0.9 million; Marriott Boston Long Wharf $45,000; Renaissance Washington DC $(10,000); and Wailea Beach Marriott Resort & Spa $0.1 million. In addition, Other Adjustments for the nine months ended September 30, 2016 include: $1.0 million in lease termination costs at the Wailea Beach Marriott Resort & Spa; a total of $0.2 million in amortization of lease intangibles at the Hilton Times Square and JW Marriott New Orleans; and a total of $1.4 million in noncash straight-line lease expense at the Hilton San Diego Bayfront, Hilton Times Square and JW Marriott New Orleans.

(3) Hotel Adjusted EBITDA for the first nine months of 2016 is impacted by major renovations at the Boston Park Plaza and the Wailea Beach Marriott Resort & Spa, and by a total of $4.3 million in non-current year property tax credits (assessments), net of appeal fees, received at the following hotels:  Boston Park Plaza $(3,000); Embassy Suites Chicago $0.6 million; Fairmont Newport Beach $26,000; Hilton Garden Inn Chicago Downtown/Magnificent Mile $0.9 million; Hilton San Diego Bayfront $(0.1) million; Hyatt Chicago Magnificent Mile $2.4 million; and Renaissance Washington DC $0.3 million. Hotel Adjusted EBITDA for the first nine months of 2015 is impacted by a major renovation at the Boston Park Plaza, as well as by a total of $0.9 million in non-current year property tax credits (assessments), net of appeal fees, received at the following hotels: Embassy Suites Chicago $(35,000); Embassy Suites La Jolla $11,000; Fairmont Newport Beach $27,000; Hilton Garden Inn Chicago Downtown/Magnificent Mile $(42,000); Hilton North Houston $0.1 million; Hyatt Chicago Magnificent Mile $0.6 million; Marriott Houston $0.1 million; Marriott Quincy $34,000; and Renaissance Harborplace $0.1 million.

(4) Comparable Portfolio includes 27 of the 28 hotels held for investment by the Company as of September 30, 2016. The Comparable Portfolio excludes the Wailea Beach Marriott Resort & Spa due to its extensive renovation during the fourth quarter of 2015 as well as all of 2016.

(5) Non-Comparable Hotel includes the results generated by the Wailea Beach Marriott Resort & Spa, which is considered non-comparable due to its extensive renovation during the fourth quarter of 2015 as well as all of 2016.

(6) Sold Hotel for both the nine months ended September 30, 2016 and 2015 includes the results generated by the Sheraton Cerritos, which was sold May 10, 2016. Sold Hotels for the nine months ended September 30, 2015 also includes the results generated by the Doubletree Guest Suites Times Square, which was sold December 18, 2015.

(7) Actual Portfolio for the first nine months of 2016 includes all 28 hotels held for investment as of September 30, 2016, as well as results from the Sheraton Cerritos before its sale May 10, 2016. Actual Portfolio for the first nine months of 2015 includes all 30 hotels held for investment by the Company as of September 30, 2015.

(8) Other Adjustments for the first nine months of 2015 include: a total of $1.2 million in  property-level restructuring, severance and management transition costs at Boston Park Plaza, the Hilton New Orleans St. Charles, the Marriott Philadelphia and the Renaissance Washington DC; $0.3 million in lease termination costs at the Boston Park Plaza; a total of $3.1 million in amortization of lease intangibles at the Doubletree Guest Suites Times Square, Hilton Times Square and JW Marriott New Orleans; and a total of $1.5 million in noncash straight-line lease expense at the Doubletree Guest Suites Times Square, Hilton San Diego Bayfront, Hilton Times Square and JW Marriott New Orleans.

PROPERTY-LEVEL ADJUSTED EBITDA & ADJUSTED EBITDA MARGINS							Page 43