Sunstone Hotel Investors (SHO) 8-K Sunstone Hotel Investors Reports Results for First Quarter 2018

Exhibit 99.2

Supplemental Financial Information
May 7, 2018

Supplemental Financial Information For the quarter ended March 31, 2018 May 7, 2018

Supplemental Financial Information
May 7, 2018

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 Q1 2018 – Q1 2017	10
Consolidated Statements of Operations Q1 2018/2017	12
Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest  Q1 2018/2017	13
Reconciliation of Net Income to FFO and Adjusted FFO Attributable to Common Stockholders Q1 2018/2017	14
Pro Forma Consolidated Statements of Operations Q1 2018 – Q2 2017, FY 2017	15
Pro Forma Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest Q1 2018	16
Pro Forma Reconciliation of Net Income to FFO and Adjusted FFO Attributable to Common Stockholders Q1 2018	17
Pro Forma Reconciliation of Net Income to EBITDAre, Adjusted EBITDAre,  Excluding Noncontrolling Interest, FFO and Adjusted FFO Attributable to Common Stockholders Q1 2018 Footnotes	18
Pro Forma Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest FY 2017	19
Pro Forma Reconciliation of Net Income to FFO and Adjusted FFO Attributable to Common Stockholders FY 2017	20
Pro Forma Reconciliation of Net Income to EBITDAre, Adjusted EBITDAre, Excluding Noncontrolling Interest, FFO and Adjusted FFO Attributable to Common Stockholders FY 2017 Footnotes	21
EARNINGS GUIDANCE	22
Earnings Guidance for Q2 and FY 2018	23
Reconciliation of Net Income to Adjusted EBITDAre, Excluding Noncontrolling Interest and Adjusted FFO Attributable to Common Stockholders Q2 and FY 2018	25

Supplemental Financial Information
May 7, 2018

CAPITALIZATION	26
Comparative Capitalization Q1 2018 – Q1 2017	27
Consolidated Debt Summary Schedule	28
Consolidated Amortization and Debt Maturity Schedule	29
PROPERTY-LEVEL DATA	30
Hotel Information as of May 7, 2018	31
PROPERTY-LEVEL OPERATING STATISTICS	32
Property-Level Operating Statistics Q1 2018/2017	33
OPERATING STATISTICS BY BRAND & GEOGRAPHY	34
Operating Statistics by Brand Q1 2018/2017	35
25 Hotel Comparable Portfolio Property-Level Trailing 12 Adjusted EBITDAre Contribution by Brand	36
Operating Statistics by Region Q1 2018/2017	37
PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS	38
Property-Level Adjusted EBITDAre Q1 2018/2017	39
Property-Level Adjusted EBITDAre Q1 2018/2017 Footnotes	40
Property-Level Adjusted EBITDAre Margins Q1 2018/2017	41
Property-Level Adjusted EBITDAre Margins Q1 2018/2017 Footnotes	42
Property-Level Adjusted EBITDAre Reconciliation Q1 2018	43
Property-Level Adjusted EBITDAre Reconciliation Q1 2017	44
Property-Level Adjusted EBITDAre Reconciliation Q1 2018/2017 Footnotes	45

Supplemental Financial Information
May 7, 2018

CORPORATE PROFILE, FINANCIAL DISCLOSURES,
AND SAFE HARBOR

CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR							Page 3

Supplemental Financial Information
May 7, 2018

About Sunstone

Sunstone Hotel Investors, Inc. (NYSE:SHO) is a lodging real estate investment trust (“REIT”) that as of May 7, 2018 has interests in 25 hotels comprised of 12,450 rooms. Sunstone’s primary business is to acquire, own, asset manage and renovate hotels considered to be long-term relevant real estate, the majority of which are operated under nationally recognized brands, such as Marriott, Hilton and Hyatt.

Sunstone’s mission is to create meaningful value for our stockholders by producing superior long-term returns through the ownership of long-term relevant real estate in the lodging sector. Our values include transparency, trust, ethical conduct, honest communication and discipline. As demand for lodging generally fluctuates with the overall economy, we seek to own hotels that will maintain a high appeal with travelers over long periods of time and will generate economic earnings materially in excess of recurring capital requirements.

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

Aaron Reyes
Vice President, Corporate Finance
(949) 382-3018

CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR							Page 4

Supplemental Financial Information
May 7, 2018

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; severe weather events or other natural disasters; 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 May 7, 2018, 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 contains unaudited information, and should be read together 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
May 7, 2018

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 for real estate, or EBITDAre; Adjusted EBITDAre, excluding noncontrolling interest (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 EBITDAre; and hotel Adjusted EBITDAre margin. These measures should not be considered in isolation or as a substitute for measures of performance in accordance with GAAP. In addition, our calculation of these measures may not be comparable to other companies that do not define such terms exactly the same 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.

We present EBITDAre in accordance with guidelines established by the National Association of Real Estate Investment Trusts (“NAREIT”), as defined in its September 2017 white paper “Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate.” We believe EBITDAre is a useful performance measure to help investors evaluate and compare the results of our operations from period to period in comparison to our peers. NAREIT defines EBITDAre as net income (calculated in accordance with GAAP) plus interest expense, income tax expense, depreciation and amortization, gains or losses on the disposition of depreciated property (including gains or losses on change in control), impairment write-downs of depreciated property and of investments in unconsolidated affiliates caused by a decrease in the value of depreciated property in the affiliate, and adjustments to reflect the entity’s share of EBITDAre of unconsolidated affiliates.

We make additional adjustments to EBITDAre 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 EBITDAre, excluding noncontrolling interest, when combined with the primary GAAP presentation of net income, is beneficial to an investor’s complete understanding of our operating performance. In addition, we use both EBITDAre and Adjusted EBITDAre, excluding noncontrolling interest as measures in determining the value of hotel acquisitions and dispositions. Our presentation of Adjusted EBITDAre, excluding noncontrolling interest results in a similar metric as our previous disclosure of Adjusted EBITDA. 

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 NAREIT’s definition of “FFO applicable to common shares.” Our presentation 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.

CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR							Page 6

Supplemental Financial Information
May 7, 2018

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.

We adjust EBITDAre and FFO attributable to common stockholders for the following items, which may occur in any period, and refer to these measures as either Adjusted EBITDAre, excluding noncontrolling interest 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 Resort. 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.

· Noncash ground rent: 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 that meet the definition of 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.

· 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.

· 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: lawsuit settlement costs; prior year property tax assessments or credits; property-level restructuring, severance and management transition costs; lease terminations; and uninsured losses.

CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR							Page 7

Supplemental Financial Information
May 7, 2018

In addition, to derive Adjusted EBITDAre, excluding noncontrolling interest we exclude the noncontrolling partner’s pro rata share of the net income (loss) allocated to the Hilton San Diego Bayfront partnership, as well as the noncontrolling partner’s pro rata share of any EBITDAre and Adjusted EBITDAre components. We  also 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. Additionally, we include an adjustment for the cash ground lease expenses recorded on the ground lease at the Courtyard by Marriott Los Angeles and the building lease at the Hyatt Centric Chicago Magnificent Mile. We have determined that both of these leases are capital leases, and, therefore, we include a portion of the capital lease payments 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 both hotels’ lessors in the current period, as well as the operating performance of both hotels. We  also exclude the effect of gains and losses on the disposition of undepreciable assets because we believe that including them in Adjusted EBITDAre, excluding noncontrolling interest is not consistent with reflecting the ongoing performance of our assets.

To derive Adjusted FFO attributable to common stockholders, we also exclude the noncash interest on our derivatives and capital lease obligations, the noncontrolling partner’s pro rata share of any FFO adjustments related to our consolidated Hilton San Diego Bayfront partnership, as well as changes to deferred tax assets or valuation allowances, and income tax benefits or provisions 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.

In presenting hotel Adjusted EBITDAre and hotel Adjusted EBITDAre margins, miscellaneous non-hotel items have been excluded. We believe the calculation of hotel Adjusted EBITDAre results in a more accurate presentation of the hotel Adjusted EBITDAre margins for our hotels, and that these non-GAAP financial measures are useful to investors in evaluating our property-level operating performance.

Reconciliations of net income to EBITDAre and Adjusted EBITDAre, excluding noncontrolling interest 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 25 Hotel Comparable Portfolio is comprised of all 25 hotels we owned as of March 31, 2018, and includes both our results and the prior owner’s results for the Oceans Edge Resort & Marina acquired in July 2017. We obtained prior ownership information from the Oceans Edge Resort & Marina’s previous owner during the due diligence period before acquiring the hotel. We performed a limited review of the information as part of our analysis of the acquisition. We caution you not to place undue reliance on the prior ownership information. 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
May 7, 2018

CORPORATE FINANCIAL INFORMATION

CORPORATE FINANCIAL INFORMATION							Page 9

Supplemental Financial Information
May 7, 2018

Condensed Consolidated Balance Sheets
Q1 2018 – Q1 2017 

(In thousands)	March 31, 2018 (1)		December 31, 2017 (2)		September 30, 2017 (3)		June 30, 2017 (4)		March 31, 2017 (5)
Assets
Investment in hotel properties:
Land	$	605,054	$	605,054	$	623,493	$	529,401	$	531,660
Buildings & improvements		3,067,473		3,049,569		3,195,726		3,163,757		3,174,081
Furniture, fixtures, & equipment		496,492		484,749		502,775		522,623		522,806
Other		115,365		103,631		89,021		84,544		98,636
		4,284,384		4,243,003		4,411,015		4,300,325		4,327,183
Less accumulated depreciation & amortization		(1,173,497)		(1,136,937)		(1,175,962)		(1,195,356)		(1,177,711)
		3,110,887		3,106,066		3,235,053		3,104,969		3,149,472
Other noncurrent assets, net		33,016		23,622		24,787		16,876		12,032
Current assets:
Cash and cash equivalents		467,050		488,002		466,519		597,318		441,830
Restricted cash		79,336		71,309		71,546		66,415		64,414
Other current assets, net		62,496		46,006		56,592		56,371		64,733
Assets held for sale, net		—		122,807		—		—		—
Total assets	$	3,752,785	$	3,857,812	$	3,854,497	$	3,841,949	$	3,732,481

*Footnotes on following page.

CORPORATE FINANCIAL INFORMATION							Page 10

Supplemental Financial Information
May 7, 2018

Condensed Consolidated Balance Sheets
Q1 2018– Q1 2017 (cont.)

(In thousands)	March 31, 2018 (1)		December 31, 2017 (2)		September 30, 2017 (3)		June 30, 2017 (4)		March 31, 2017 (5)
Liabilities
Current liabilities:
Current portion of notes payable, net	$	5,569	$	5,477	$	9,161	$	9,023	$	8,898
Other current liabilities		110,685		236,893		115,825		109,989		111,419
Liabilities of assets held for sale		—		189		—		—		—
Total current liabilities		116,254		242,559		124,986		119,012		120,317
Notes payable, less current portion, net		975,779		977,282		977,634		980,066		982,460
Capital lease obligations, less current portion		26,854		26,804		26,756		15,574		15,574
Other liabilities		31,041		28,989		29,774		36,631		36,917
Total liabilities		1,149,928		1,275,634		1,159,150		1,151,283		1,155,268
Equity
Stockholders' equity:
6.95% Series E cumulative redeemable preferred stock		115,000		115,000		115,000		115,000		115,000
6.45% Series F cumulative redeemable preferred stock		75,000		75,000		75,000		75,000		75,000
Common stock, $0.01 par value, 500,000,000 shares authorized		2,256		2,253		2,253		2,252		2,204
Additional paid in capital		2,677,099		2,679,221		2,677,251		2,672,216		2,594,724
Retained earnings		968,293		932,277		912,881		897,968		848,736
Cumulative dividends and distributions		(1,284,501)		(1,270,013)		(1,136,119)		(1,121,645)		(1,107,180)
Total stockholders' equity		2,553,147		2,533,738		2,646,266		2,640,791		2,528,484
Noncontrolling interest in consolidated joint venture		49,710		48,440		49,081		49,875		48,729
Total equity		2,602,857		2,582,178		2,695,347		2,690,666		2,577,213
Total liabilities and equity	$	3,752,785	$	3,857,812	$	3,854,497	$	3,841,949	$	3,732,481

(1) As presented on Form 10-Q to be filed in May 2018.

(2) As presented on Form 10-K filed on February 14, 2018.

(3) As presented on Form 10-Q filed on November 1, 2017.

(4) As presented on Form 10-Q filed on August 3, 2017.

(5) As presented on Form 10-Q filed on May 4, 2017.

CORPORATE FINANCIAL INFORMATION							Page 11

Supplemental Financial Information
May 7, 2018

Consolidated Statements of Operations
Q1 2018/2017

	Three Months Ended March 31,
(In thousands, except per share data)	2018		2017
Revenues
Room	$	180,276	$	190,367
Food and beverage		74,266		75,501
Other operating		16,904		14,875
Total revenues		271,446		280,743
Operating expenses
Room		51,095		51,292
Food and beverage		50,154		50,537
Other operating		3,941		3,831
Advertising and promotion		13,906		14,946
Repairs and maintenance		11,103		10,967
Utilities		7,475		7,222
Franchise costs		7,853		8,055
Property tax, ground lease and insurance		21,781		21,287
Other property-level expenses		33,907		34,738
Corporate overhead		7,102		6,779
Depreciation and amortization		36,688		40,807
Total operating expenses		245,005		250,461
Operating income		26,441		30,282
Interest and other income		1,491		721
Interest expense		(8,876)		(11,249)
Loss on extinguishment of debt		—		(4)
Gain on sale of assets		15,659		44,285
Income before income taxes		34,715		64,035
Income tax benefit (provision), net		3,740		(208)
Net income		38,455		63,827
Income from consolidated joint venture attributable to noncontrolling interest		(2,439)		(1,992)
Preferred stock dividends		(3,207)		(3,207)
Income attributable to common stockholders	$	32,809	$	58,628
Basic and diluted per share amounts:
Basic and diluted income attributable to common stockholders per common share	$	0.15	$	0.27
Basic and diluted weighted average common shares outstanding		224,282		219,093
Distributions declared per common share	$	0.05	$	0.05

CORPORATE FINANCIAL INFORMATION							Page 12

Supplemental Financial Information
May 7, 2018

Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest
Q1 2018/2017

	Three Months Ended March 31,
(In thousands)		2018		2017
Net income	$	38,455	$	63,827
Operations held for investment:
Depreciation and amortization		36,688		40,807
Amortization of lease intangibles		63		63
Interest expense		8,876		11,249
Income tax (benefit) provision, net		(3,740)		208
Gain on sale of assets, net		(15,669)		(44,570)
EBITDAre		64,673		71,584
Operations held for investment:
Amortization of deferred stock compensation		2,000		1,749
Amortization of favorable and unfavorable contracts, net		3		99
Noncash ground rent		(281)		(275)
Capital lease obligation interest - cash ground rent		(589)		(351)
Loss on extinguishment of debt		—		4
Hurricane-related uninsured losses		69		—
Prior year property tax adjustments, net		(19)		—
Noncontrolling interest:
Income from consolidated joint venture attributable to noncontrolling interest		(2,439)		(1,992)
Depreciation and amortization		(638)		(875)
Interest expense		(435)		(457)
Noncash ground rent		72		72
		(2,257)		(2,026)
Adjusted EBITDAre, excluding noncontrolling interest	$	62,416	$	69,558

CORPORATE FINANCIAL INFORMATION							Page 13

Supplemental Financial Information
May 7, 2018

Reconciliation of Net Income to FFO and Adjusted FFO Attributable to Common Stockholders
Q1 2018/2017

	Three Months Ended March 31,
(In thousands, except per share data)		2018		2017
Net income	$	38,455	$	63,827
Preferred stock dividends		(3,207)		(3,207)
Operations held for investment:
Real estate depreciation and amortization		36,594		40,678
Amortization of lease intangibles		63		63
Gain on sale of assets, net		(15,669)		(44,570)
Noncontrolling interest:
Income from consolidated joint venture attributable to noncontrolling interest		(2,439)		(1,992)
Real estate depreciation and amortization		(638)		(875)
FFO attributable to common stockholders		53,159		53,924
Operations held for investment:
Amortization of favorable and unfavorable contracts, net		3		99
Noncash ground rent		(281)		(275)
Noncash interest on derivatives and capital lease obligations, net		(3,137)		(657)
Loss on extinguishment of debt		—		4
Hurricane-related uninsured losses		69		—
Prior year property tax adjustments, net		(19)		—
Noncash income tax benefit		(3,966)		—
Noncontrolling interest:
Noncash ground rent		72		72
Noncash interest on derivative, net		3		(4)
		(7,256)		(761)
Adjusted FFO attributable to common stockholders	$	45,903	$	53,163
FFO attributable to common stockholders per diluted share	$	0.24	$	0.25
Adjusted FFO attributable to common stockholders per diluted share	$	0.20	$	0.24
Basic weighted average shares outstanding		224,282		219,093
Shares associated with unvested restricted stock awards		343		262
Diluted weighted average shares outstanding		224,625		219,355

CORPORATE FINANCIAL INFORMATION							Page 14

Supplemental Financial Information
May 7, 2018

Pro Forma Consolidated Statements of Operations
Q1 2018 – Q2 2017, FY 2017

	Three Months Ended (1)								Year Ended (1)
(Unaudited and in thousands)		March 31,		December 31,		September 30,		June 30,		December 31,
		2018		2017		2017		2017		2017
Revenues
Room	$	179,896	$	191,532	$	207,227	$	215,937	$	795,523
Food and beverage		74,067		70,103		66,040		75,036		282,371
Other operating		16,880		16,348		19,143		16,739		66,590
Total revenues		270,843		277,983		292,410		307,712		1,144,484
Operating Expenses
Room		50,923		50,900		52,439		52,846		205,118
Food and beverage		49,782		47,743		46,909		48,395		190,321
Other expenses		98,964		96,429		102,070		99,901		394,425
Corporate overhead		7,102		7,232		7,233		7,573		28,817
Depreciation and amortization		36,688		36,765		37,887		38,290		152,203
Impairment loss		—		5,626		34,427		—		40,053
Total operating expenses		243,459		244,695		280,965		247,005		1,010,937
Operating Income		27,384		33,288		11,445		60,707		133,547
Interest and other income		1,491		1,743		1,027		849		4,340
Interest expense		(8,876)		(10,425)		(17,008)		(13,084)		(51,766)
Loss on extinguishment of debt		—		(820)		—		—		(824)
Income (loss) before income taxes and discontinued operations		19,999		23,786		(4,536)		48,472		85,297
Income tax benefit (provision), net		3,740		(4,766)		12,991		(242)		7,775
Income from continuing operations		23,739		19,020		8,455		48,230		93,072
Income from discontinued operations		—		—		7,000		—		7,000
Net Income	$	23,739	$	19,020	$	15,455	$	48,230	$	100,072
Adjusted EBITDAre, excluding noncontrolling interest (2)	$	63,359	$	75,731	$	84,151	$	99,032	$	324,751

(1) Includes the Company's ownership results and prior ownership results for the 25 Hotel Comparable Portfolio. Excludes the Company's ownership results for the Marriott Philadelphia and Marriott Quincy due to their sales in January 2018, and the Marriott Park City and Fairmont Newport Beach due to their sales in June 2017 and February 2017, respectively.

(2) Adjusted EBITDAre, excluding noncontrolling interest reconciliations for the three months ended March 31, 2018 and the year ended December 31, 2017 can be found on pages 16 and 19, respectively, of this supplemental package.

CORPORATE FINANCIAL INFORMATION							Page 15

Supplemental Financial Information
May 7, 2018

Pro Forma Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest
Q1 2018

	Three Months Ended March 31, 2018
				Disposition:		Disposition:
				Marriott		Marriott		Pro
(In thousands)		Actual (1)		Philadelphia (2)		Quincy (3)		Forma (4)
Net income	$	38,455	$	(15,056)	$	340	$	23,739
Operations held for investment:
Depreciation and amortization		36,688		—		—		36,688
Amortization of lease intangibles		63		—		—		63
Interest expense		8,876		—		—		8,876
Income tax benefit, net		(3,740)		—		—		(3,740)
Gain on sale of assets, net		(15,669)		15,408		251		(10)
EBITDAre		64,673		352		591		65,616
Operations held for investment:
Amortization of deferred stock compensation		2,000		—		—		2,000
Amortization of favorable and unfavorable contracts, net		3		—		—		3
Noncash ground rent		(281)		—		—		(281)
Capital lease obligation interest - cash ground rent		(589)		—		—		(589)
Hurricane-related uninsured losses		69		—		—		69
Prior year property tax adjustments, net		(19)		—		—		(19)
Noncontrolling interest:
Income from consolidated joint venture attributable to noncontrolling interest		(2,439)		—		—		(2,439)
Depreciation and amortization		(638)		—		—		(638)
Interest expense		(435)		—		—		(435)
Noncash ground rent		72		—		—		72
		(2,257)		—		—		(2,257)
Adjusted EBITDAre, excluding noncontrolling interest	$	62,416	$	352	$	591	$	63,359

*Footnotes on page 18

CORPORATE FINANCIAL INFORMATION							Page 16

Supplemental Financial Information
May 7, 2018

Pro Forma Reconciliation of Net Income to FFO and Adjusted FFO Attributable to Common Stockholders 
Q1 2018 

	Three Months Ended March 31, 2018
				Disposition:		Disposition:
				Marriott		Marriott		Pro
(In thousands, except per share amounts)		Actual (1)		Philadelphia (2)		Quincy (3)		Forma (4)
Net income	$	38,455	$	(15,056)	$	340	$	23,739
Preferred stock dividends		(3,207)		—		—		(3,207)
Operations held for investment:
Real estate depreciation and amortization		36,594		—		—		36,594
Amortization of lease intangibles		63		—		—		63
Gain on sale of assets, net		(15,669)		15,408		251		(10)
Noncontrolling interest:
Income from consolidated joint venture attributable to noncontrolling interest		(2,439)		—		—		(2,439)
Real estate depreciation and amortization		(638)		—		—		(638)
FFO attributable to common stockholders		53,159		352		591		54,102
Operations held for investment:
Amortization of favorable and unfavorable contracts, net		3		—		—		3
Noncash ground rent		(281)		—		—		(281)
Noncash interest on derivatives and capital lease obligations, net		(3,137)		—		—		(3,137)
Hurricane-related uninsured losses		69		—		—		69
Prior year property tax adjustments, net		(19)		—		—		(19)
Noncash income tax benefit		(3,966)		—		—		(3,966)
Noncontrolling interest:
Noncash ground rent		72		—		—		72
Noncash interest on derivative, net		3		—		—		3
		(7,256)		—		—		(7,256)
Adjusted FFO attributable to common stockholders	$	45,903	$	352	$	591	$	46,846
FFO attributable to common stockholders per diluted share	$	0.24					$	0.24
Adjusted FFO attributable to common stockholders per diluted share	$	0.20					$	0.21
Basic weighted average shares outstanding		224,282						224,282
Shares associated with unvested restricted stock awards		343						343
Diluted weighted average shares outstanding		224,625						224,625

*Footnotes on page 18

CORPORATE FINANCIAL INFORMATION							Page 17

Supplemental Financial Information
May 7, 2018

Pro Forma Reconciliation of Net Income to EBITDAre, Adjusted EBITDAre, Excluding Noncontrolling Interest,

FFO and Adjusted FFO Attributable to Common Stockholders
Q1 2018 Footnotes

(1) Actual represents the Company's ownership results for all 25 hotels owned by the Company as of March 31, 2018, as well as results for the Marriott Philadelphia and the Marriott Quincy prior to their dispositions in January 2018.

(2) Disposition: Marriott Philadelphia represents the Company's ownership results for the hotel, sold in January 2018.

(3) Disposition: Marriott Quincy represents the Company's ownership results for the hotel, sold in January 2018.

(4) Pro Forma represents the Company's ownership results for the 25 Hotel Comparable Portfolio.

CORPORATE FINANCIAL INFORMATION							Page 18

Supplemental Financial Information
May 7, 2018

Pro Forma Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest
FY 2017 

	Year Ended December 31, 2017
				Disposition:		Disposition:		Disposition:		Disposition:		Acquisition:		Issuance:
				Fairmont		Marriott		Marriott		Marriott		Oceans Edge		Common		Pro
(In thousands)		Actual (1)		Newport Beach (2)		Park City (3)		Philadelphia (4)		Quincy (5)		Resort & Marina (6)		Stock (7)		Forma (8)
Net income	$	153,004	$	(45,304)	$	(2,636)	$	(2,230)	$	(4,155)	$	1,393	$	—	$	100,072
Operations held for investment:
Depreciation and amortization		158,634		—		(699)		(2,510)		(4,685)		1,463		—		152,203
Amortization of lease intangibles		251		—		—		—		—		—		—		251
Interest expense		51,766		—		—		—		—		—		—		51,766
Income tax benefit, net		(7,775)		—		—		—		—		—		—		(7,775)
Gain on sale of assets, net		(45,747)		44,285		1,189		—		—		—		—		(273)
Impairment loss		40,053		—		—		—		—		—		—		40,053
EBITDAre		350,186		(1,019)		(2,146)		(4,740)		(8,840)		2,856		—		336,297
Operations held for investment:
Amortization of deferred stock compensation		8,042		—		—		—		—		—		—		8,042
Amortization of favorable and unfavorable contracts, net		218		—		—		—		—		—		—		218
Noncash ground rent		(1,122)		—		—		—		—		—		—		(1,122)
Capital lease obligation interest - cash ground rent		(1,867)		—		—		—		—		—		—		(1,867)
Loss on extinguishment of debt		824		—		—		—		—		—		—		824
Hurricane-related uninsured losses		1,690		—		—		—		—		—		—		1,690
Closing costs - completed acquisition		729		—		—		—		—		—		—		729
Prior year property tax adjustments, net		(800)		—		—		—		—		—		—		(800)
Noncontrolling interest:
Income from consolidated joint venture attributable to noncontrolling interest		(7,628)		—		—		—		—		—		—		(7,628)
Depreciation and amortization		(2,767)		—		—		—		—		—		—		(2,767)
Interest expense		(1,950)		—		—		—		—		—		—		(1,950)
Noncash ground rent		290		—		—		—		—		—		—		290
Loss on extinguishment of debt		(205)		—		—		—		—		—		—		(205)
Discontinued operations:
Gain on sale of assets		(7,000)		—		—		—		—		—		—		(7,000)
		(11,546)		—		—		—		—		—		—		(11,546)
Adjusted EBITDAre, excluding noncontrolling interest	$	338,640	$	(1,019)	$	(2,146)	$	(4,740)	$	(8,840)	$	2,856	$	—	$	324,751

*Footnotes on page 21

CORPORATE FINANCIAL INFORMATION							Page 19

Supplemental Financial Information
May 7, 2018

Pro Forma Reconciliation of Net Income to FFO and Adjusted FFO Attributable to Common Stockholders
FY 2017 

	Year Ended December 31, 2017
				Disposition:		Disposition:		Disposition:		Disposition:		Acquisition:		Issuance:
				Fairmont		Marriott		Marriott		Marriott		Oceans Edge		Common		Pro
(In thousands, except per share amounts)		Actual (1)		Newport Beach (2)		Park City (3)		Philadelphia (4)		Quincy (5)		Resort & Marina (6)		Stock (7)		Forma (8)
Net income	$	153,004	$	(45,304)	$	(2,636)	$	(2,230)	$	(4,155)	$	1,393	$	—	$	100,072
Preferred stock dividends		(12,830)		—		—		—		—		—		—		(12,830)
Operations held for investment:
Real estate depreciation and amortization		158,177		—		(699)		(2,510)		(4,685)		1,463		—		151,746
Amortization of lease intangibles		251		—		—		—		—		—		—		251
Gain on sale of assets, net		(45,747)		44,285		1,189		—		—		—		—		(273)
Impairment loss		40,053		—		—		—		—		—		—		40,053
Noncontrolling interest:
Income from consolidated joint venture attributable to noncontrolling interest		(7,628)		—		—		—		—		—		—		(7,628)
Real estate depreciation and amortization		(2,767)		—		—		—		—		—		—		(2,767)
Discontinued operations:
Gain on sale of assets		(7,000)		—		—		—		—		—		—		(7,000)
FFO attributable to common stockholders		275,513		(1,019)		(2,146)		(4,740)		(8,840)		2,856		—		261,624
Operations held for investment:
Amortization of favorable and unfavorable contracts, net		218		—		—		—		—		—		—		218
Noncash ground rent		(1,122)		—		—		—		—		—		—		(1,122)
Noncash interest on derivatives and capital lease obligations, net		3,106		—		—		—		—		—		—		3,106
Loss on extinguishment of debt		824		—		—		—		—		—		—		824
Hurricane-related uninsured losses		1,690		—		—		—		—		—		—		1,690
Closing costs - completed acquisition		729		—		—		—		—		—		—		729
Prior year property tax adjustments, net		(800)		—		—		—		—		—		—		(800)
Noncash income tax benefit, net		(9,235)		—		—		—		—		—		—		(9,235)
Noncontrolling interest:
Noncash ground rent		290		—		—		—		—		—		—		290
Noncash interest on derivative, net		(30)		—		—		—		—		—		—		(30)
Loss on extinguishment of debt		(205)		—		—		—		—		—		—		(205)
		(4,535)		—		—		—		—		—		—		(4,535)
Adjusted FFO attributable to common stockholders	$	270,978	$	(1,019)	$	(2,146)	$	(4,740)	$	(8,840)	$	2,856	$	—	$	257,089
FFO attributable to common stockholders per diluted share	$	1.24													$	1.17
Adjusted FFO attributable to common stockholders per diluted share	$	1.22													$	1.15
Basic weighted average shares outstanding		221,898												2,202		224,100
Shares associated with unvested restricted stock awards		391												—		391
Diluted weighted average shares outstanding		222,289												2,202		224,491

*Footnotes on page 21

CORPORATE FINANCIAL INFORMATION							Page 20

Supplemental Financial Information
May 7, 2018

Pro Forma Reconciliation of Net Income to EBITDAre, Adjusted EBITDAre, Excluding Noncontrolling Interest,

FFO and Adjusted FFO Attributable to Common Stockholders
FY 2017 Footnotes

(1) Actual represents the Company's ownership results for all 27 hotels owned by the Company as of December 31, 2017, as well as results for the Fairmont Newport Beach and the Marriott Park City prior to their dispositions in February 2017 and June 2017, respectively.

(2) Disposition: Fairmont Newport Beach represents the Company's ownership results for the hotel, sold in February 2017.

(3) Disposition: Marriott Park City represents the Company's ownership results for the hotel, sold in June 2017.

(4) Disposition: Marriott Philadelphia represents the Company's ownership results for the hotel, sold in January 2018.

(5) Disposition: Marriott Quincy represents the Company's ownership results for the hotel, sold in January 2018.

(6) Acquisition: Oceans Edge Resort & Marina represents prior ownership results for the hotel acquired in July 2017, adjusted for the Company's pro forma depreciation expense.

(7) Issuance: Common Stock represents the 4,685,023 shares and the 191,832 shares issued in connection with the Company's ATM program in the second quarter of 2017 and July 2017, respectively. The 191,832 shares were sold at the end of June, but due to customary settlement periods, the shares were not delivered until July.

(8) Pro Forma represents the Company's ownership results and prior ownership results for the 25 Hotel Comparable Portfolio, as well as the common stock issuances in 2017.

CORPORATE FINANCIAL INFORMATION							Page 21

Supplemental Financial Information
May 7, 2018

EARNINGS GUIDANCE

EARNINGS GUIDANCE							Page 22

Supplemental Financial Information
May 7, 2018

Earnings Guidance for Q2 and FY 2018

The Company’s 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, changes in its operating environment or any unannounced hotel acquisitions, dispositions, re-brandings, management changes, transition costs, noncash impairment expense, changes in deferred tax assets or valuation allowances, severance costs associated with restructuring hotel services, uninsured property losses, early lease termination costs, prior year property tax assessments or credits, debt repurchases/repayments, or unannounced financings during 2018. The Company’s 2018 guidance does include anticipated displacement from the scheduled 2018 capital investment projects. The Company expects the negative impact of its 2018 capital investment projects to result in approximately 100 basis points less annual RevPAR growth and approximately $6 million to $8 million less Adjusted EBITDAre, excluding noncontrolling interest. The Company’s 2018 guidance does not anticipate any acceleration in business travel resulting from the recent federal tax cuts or other stimulus programs.

For the second quarter of 2018, the Company expects:

Metric	Quarter Ended June 30, 2018 Guidance (1)
Net Income ($ millions)	$48 to  $51
25 Hotel Comparable Portfolio RevPAR Growth	+ 0.5% to + 2.5%
Adjusted EBITDAre, excluding noncontrolling interest ($ millions)	$96  to  $99
Adjusted FFO Attributable to Common Stockholders ($ millions)	$77  to  $81
Adjusted FFO Attributable to Common Stockholders per Diluted Share	$0.34  to  $0.36
Diluted Weighted Average Shares Outstanding	224,800,000

For the full year of 2018, the Company expects:

Metric	Full Year 2018 Guidance (2)	Adjustments (3)	Adjusted Prior Full Year 2018 Guidance	Current Full Year 2018 Guidance (1)	Change in Full Year 2018 Guidance Midpoint
Net Income ($ millions)	$115 to  $140	+ $16	$130 to  $156	$145 to  $164	+ $11
25 Hotel Comparable Portfolio RevPAR Growth	- 0.5% to + 2.5%	―	- 0.5% to + 2.5%	0% to + 2.5%	+ 0.3%
Adjusted EBITDAre, excluding noncontrolling interest ($ millions)	$303  to  $327	$0	$303  to  $327	$310  to  $328	+ $4
Adjusted FFO Attributable to Common Stockholders ($ millions)	$235  to  $259	$0	$235  to  $259	$242  to  $261	+ $4
Adjusted FFO Attributable to Common Stockholders per Diluted Share	$1.05  to  $1.15	- $0.01	$1.04  to  $1.15	$1.07  to  $1.16	+ $0.02
Diluted Weighted Average Shares Outstanding	225,000,000	―	225,000,000	225,000,000	―

(1) See page 25 for a detailed reconciliation.

(2) Reflects guidance presented on February 12, 2018.

(3) Adjustments reflect the cumulative impact of operating results for the Marriott Philadelphia and the Marriott Quincy before their sale in January 2018, including severance payments associated with the sale, the net gain on the sale of the hotels, and the effect on net income of business interruption proceeds at the Oceans Edge Resort & Marina recognized during the first quarter of 2018.

EARNINGS GUIDANCE							Page 23

Supplemental Financial Information
May 7, 2018

Earnings Guidance for Q2 and FY 2018

Second quarter and full year 2018 guidance are based in part on the following assumptions:

· Full year 25 Hotel Comparable Portfolio RevPAR guidance is negatively impacted by approximately 100 basis points, resulting from planned 2018 capital investment projects.

· Full year revenue displacement of $9 million to $11 million, related to planned 2018 capital investment projects.

· Full year Adjusted EBITDAre, excluding noncontrolling interest displacement of approximately $6 million to $8 million, related to planned 2018 capital investment projects.

· Full year 25 Hotel Comparable Portfolio Adjusted EBITDAre Margin is expected to decline 50 basis points to 100 basis points, which is negatively impacted by approximately 40 basis points resulting from planned 2018 capital investment projects.

· Full year corporate overhead expense (excluding deferred stock amortization) of approximately $21 million to $22 million.

· Full year amortization of deferred stock compensation expense of approximately $9 million.

· Full year interest expense of approximately $46 million, including approximately $3 million in amortization of deferred financing fees, approximately $2 million of capital lease obligation interest and approximately $3 million noncash gain on derivatives.

· Full year total preferred dividends of $13 million, which includes the Series E and Series F cumulative redeemable preferred stock.

EARNINGS GUIDANCE							Page 24

Supplemental Financial Information
May 7, 2018

Reconciliation of Net Income to Adjusted EBITDAre, Excluding Noncontrolling Interest and

Adjusted FFO Attributable to Common Stockholders
Q2 and FY 2018

Reconciliation of Net Income to Adjusted EBITDAre, Excluding Noncontrolling Interest

		Quarter Ended				Year Ended
		June 30, 2018				December 31, 2018
(In thousands, except per share data)		Low		High		Low		High
Net income	$	47,900	$	51,400	$	144,800	$	163,900
Depreciation and amortization		36,200		36,100		145,100		144,700
Amortization of lease intangibles		100		100		300		300
Interest expense		12,700		12,400		45,900		45,500
Income tax provision (benefit), net		200		200		(3,100)		(3,100)
Gain on sale of assets, net		—		—		(15,700)		(15,700)
Noncontrolling interest		(3,100)		(3,200)		(12,900)		(13,200)
Amortization of deferred stock compensation		2,900		2,900		9,000		9,000
Noncash ground rent		(300)		(300)		(1,100)		(1,100)
Capital lease obligation interest - cash ground rent		(600)		(600)		(2,400)		(2,400)
Hurricane-related uninsured losses		—		—		100		100
Adjusted EBITDAre, excluding noncontrolling interest	$	96,000	$	99,000	$	310,000	$	328,000

Reconciliation of Net Income to Adjusted FFO Attributable to Common Stockholders

Net income	$	47,900	$	51,400	$	144,800	$	163,900
Preferred stock dividends		(3,200)		(3,200)		(12,800)		(12,800)
Real estate depreciation and amortization		35,700		35,600		144,400		144,200
Amortization of lease intangibles		100		100		300		300
Gain on sale of assets, net		—		—		(15,700)		(15,700)
Noncontrolling interest		(2,900)		(3,000)		(11,200)		(11,400)
Noncash ground rent		(300)		(300)		(1,100)		(1,100)
Noncash interest on derivatives and capital lease obligations, net		100		100		(3,000)		(3,000)
Hurricane-related uninsured losses		—		—		100		100
Noncash income tax benefit		—		—		(4,000)		(4,000)
Adjusted FFO attributable to common stockholders	$	77,400	$	80,700	$	241,800	$	260,500
Adjusted FFO attributable to common stockholders per diluted share	$	0.34	$	0.36	$	1.07	$	1.16
Diluted weighted average shares outstanding		224,800		224,800		225,000		225,000

EARNINGS GUIDANCE							Page 25

Supplemental Financial Information
May 7, 2018

CAPITALIZATION

CAPITALIZATION							Page 26

Supplemental Financial Information
May 7, 2018

Comparative Capitalization
Q1 2018 – Q1 2017

		March 31,			December 31,			September 30,			June 30,			March 31,
(In thousands, except per share data)		2018			2017			2017			2017			2017
Common Share Price & Dividends
At the end of the quarter	$	15.22		$	16.53		$	16.07		$	16.12		$	15.33
High during quarter ended	$	17.26		$	17.44		$	16.67		$	16.72		$	15.65
Low during quarter ended	$	14.33		$	15.90		$	15.23		$	14.89		$	14.24
Common dividends per share	$	0.05		$	0.58		$	0.05		$	0.05		$	0.05
Common Shares & Units
Common shares outstanding		225,615			225,322			225,322			225,152			220,417
Units outstanding		—			—			—			—			—
Total common shares and units outstanding		225,615			225,322			225,322			225,152			220,417
Capitalization
Market value of common equity	$	3,433,856		$	3,724,567		$	3,620,919		$	3,629,453		$	3,378,999
Liquidation value of preferred equity - Series E		115,000			115,000			115,000			115,000			115,000
Liquidation value of preferred equity - Series F		75,000			75,000			75,000			75,000			75,000
Consolidated debt		988,510			990,402			992,149			994,759			997,346
Consolidated total capitalization		4,612,366			4,904,969			4,803,068			4,814,212			4,566,345
Noncontrolling interest in consolidated debt		(55,000)			(55,000)			(54,979)			(55,184)			(55,386)
Pro rata total capitalization	$	4,557,366		$	4,849,969		$	4,748,089		$	4,759,028		$	4,510,959
Consolidated debt to total capitalization		21.4	%		20.2	%		20.7	%		20.7	%		21.8	%
Pro rata debt to pro rata total capitalization		20.5	%		19.3	%		19.7	%		19.7	%		20.9	%
Consolidated debt and preferred equity to total capitalization		25.6	%		24.1	%		24.6	%		24.6	%		26.0	%
Pro rata debt and preferred equity to pro rata total capitalization		24.7	%		23.2	%		23.7	%		23.7	%		25.1	%

CAPITALIZATION							Page 27

Supplemental Financial Information
May 7, 2018

Consolidated Debt Summary Schedule

(In thousands)		Interest Rate /	Maturity		March 31, 2018			Balance At
Debt	Collateral	Spread	Date		Balance			Maturity
Fixed Rate Debt
Secured Mortgage Debt	Hilton Times Square	4.97%	11/01/2020	$	81,056		$	76,145
Secured Mortgage Debt	Renaissance Washington DC	5.95%	05/01/2021		116,139			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		84,913			72,071
Secured Mortgage Debt	Embassy Suites La Jolla	4.12%	01/06/2025		61,402			51,987
Series A Senior Notes	Unsecured	4.69%	01/10/2026		120,000			120,000
Series B Senior Notes	Unsecured	4.79%	01/10/2028		120,000			120,000
Total Fixed Rate Debt					768,510			732,058
Secured Mortgage Debt	Hilton San Diego Bayfront	L + 1.05%	12/09/2020		220,000			220,000
Credit Facility	Unsecured	L + 1.55% - 2.30%	04/02/2019		—			—
Total Variable Rate Debt					220,000			220,000
TOTAL CONSOLIDATED DEBT				$	988,510		$	952,058
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					77.7	%
% Floating Rate Debt					22.3	%
Average Interest Rate (1)					4.12	%
Weighted Average Maturity of Debt					5.2 years

(1) Average Interest Rate on the variable-rate debt obligation is calculated based on the variable rate at March 31, 2018, and includes the effect of the Company's interest rate derivative agreement.

CAPITALIZATION							Page 28

Supplemental Financial Information
May 7, 2018

Consolidated Amortization and Debt Maturity Schedule

As of March 31, 2018

(1) Percent of Current Total Capitalization is calculated by dividing the sum of scheduled principal amortization and maturity payments by the March 31, 2018 consolidated total capitalization as presented on page 27.

CAPITALIZATION							Page 29

Supplemental Financial Information
May 7, 2018

PROPERTY-LEVEL DATA

PROPERTY-LEVEL DATA							Page 30

Supplemental Financial Information
May 7, 2018

Hotel Information as of May 7, 2018

Hotel		Location	Brand	Number of Rooms	% of Total Rooms	Ownership Interest	Interest	Leasehold Maturity (1)	Year Acquired
1	Hilton San Diego Bayfront	California	Hilton	1,190	9.56%	75%	Leasehold	2071	2011
2	Boston Park Plaza	Massachusetts	Independent	1,060	8.51%	100%	Fee Simple		2013
3	Renaissance Washington DC	Washington DC	Marriott	807	6.48%	100%	Fee Simple		2005
4	Hyatt Regency San Francisco	California	Hyatt	804	6.46%	100%	Fee Simple		2013
5	Renaissance Orlando at SeaWorld®	Florida	Marriott	781	6.27%	100%	Fee Simple		2005
6	Renaissance Harborplace	Maryland	Marriott	622	5.00%	100%	Fee Simple		2005
7	Wailea Beach Resort	Hawaii	Marriott	547	4.39%	100%	Fee Simple		2014
8	Renaissance Los Angeles Airport	California	Marriott	501	4.02%	100%	Fee Simple		2007
9	JW Marriott New Orleans (2)	Louisiana	Marriott	501	4.02%	100%	Leasehold	2081	2011
10	Hilton North Houston	Texas	Hilton	480	3.86%	100%	Fee Simple		2002
11	Hilton Times Square	New York	Hilton	478	3.84%	100%	Leasehold	2091	2006
12	Hyatt Centric Chicago Magnificent Mile	Illinois	Hyatt	419	3.37%	100%	Leasehold	2097	2012
13	Marriott Boston Long Wharf	Massachusetts	Marriott	412	3.31%	100%	Fee Simple		2007
14	Hyatt Regency Newport Beach	California	Hyatt	408	3.28%	100%	Leasehold	2048	2002
15	Marriott Tysons Corner	Virginia	Marriott	396	3.18%	100%	Fee Simple		2002
16	Marriott Houston	Texas	Marriott	390	3.13%	100%	Fee Simple		2002
17	Renaissance Long Beach	California	Marriott	374	3.00%	100%	Fee Simple		2005
18	Embassy Suites Chicago	Illinois	Hilton	368	2.96%	100%	Fee Simple		2002
19	Hilton Garden Inn Chicago Downtown/Magnificent Mile	Illinois	Hilton	361	2.90%	100%	Fee Simple		2012
20	Renaissance Westchester	New York	Marriott	348	2.80%	100%	Fee Simple		2010
21	Embassy Suites La Jolla	California	Hilton	340	2.73%	100%	Fee Simple		2006
22	Hilton New Orleans St. Charles	Louisiana	Hilton	252	2.02%	100%	Fee Simple		2013
23	Marriott Portland	Oregon	Marriott	249	2.00%	100%	Fee Simple		2000
24	Courtyard by Marriott Los Angeles (3)	California	Marriott	187	1.50%	100%	Leasehold	2096	1999
25	Oceans Edge Resort & Marina	Florida	Independent	175	1.41%	100%	Fee Simple		2017
	Total 25 Hotel Portfolio			12,450	100%

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

(2) 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.

(3) Hotel is subject to a ground lease that contains a purchase right option in 2037, which the Company intends to exercise.

PROPERTY-LEVEL DATA							Page 31

Supplemental Financial Information
May 7, 2018

PROPERTY-LEVEL OPERATING STATISTICS

PROPERTY-LEVEL OPERATING STATISTICS							Page 32

Supplemental Financial Information
May 7, 2018

Property-Level Operating Statistics

Q1 2018/2017

	Hotels sorted by number of rooms	ADR						Occupancy			RevPAR
		For the Three Months Ended March 31,						For the Three Months Ended March 31,			For the Three Months Ended March 31,
		2018				2017	Variance	2018	2017	Variance	2018		2017		Variance
1	Hilton San Diego Bayfront	$	243.43	$	248.23		-1.9%	86.1%	82.2%	4.7%	$	209.59	$	204.05	2.7%
2	Boston Park Plaza	$	160.58	$	161.50		-0.6%	70.0%	62.7%	11.6%	$	112.41	$	101.26	11.0%
3	Renaissance Washington DC	$	228.69	$	255.14		-10.4%	74.4%	81.3%	-8.5%	$	170.15	$	207.43	-18.0%
4	Hyatt Regency San Francisco (1)	$	299.75	$	322.01		-6.9%	84.5%	85.9%	-1.6%	$	253.29	$	276.61	-8.4%
5	Renaissance Orlando at SeaWorld ®	$	190.67	$	197.24		-3.3%	82.7%	80.7%	2.5%	$	157.68	$	159.17	-0.9%
6	Renaissance Harborplace	$	148.61	$	155.89		-4.7%	59.6%	73.0%	-18.4%	$	88.57	$	113.80	-22.2%
7	Wailea Beach Resort	$	443.04	$	369.64		19.9%	94.8%	86.8%	9.2%	$	420.00	$	320.85	30.9%
8	Renaissance Los Angeles Airport (1)	$	152.63	$	161.51		-5.5%	81.4%	89.7%	-9.3%	$	124.24	$	144.87	-14.2%
9	JW Marriott New Orleans	$	217.87	$	217.29		0.3%	84.5%	85.4%	-1.1%	$	184.10	$	185.57	-0.8%
10	Hilton North Houston	$	105.67	$	112.45		-6.0%	71.9%	67.8%	6.0%	$	75.98	$	76.24	-0.3%
11	Hilton Times Square	$	217.41	$	209.60		3.7%	99.2%	99.2%	0.0%	$	215.67	$	207.92	3.7%
12	Hyatt Centric Magnificent Mile	$	133.99	$	133.50		0.4%	73.7%	61.9%	19.1%	$	98.75	$	82.64	19.5%
13	Marriott Boston Long Wharf (1)	$	251.17	$	235.92		6.5%	41.5%	80.7%	-48.6%	$	104.24	$	190.39	-45.3%
14	Hyatt Regency Newport Beach	$	171.78	$	172.00		-0.1%	79.9%	81.1%	-1.5%	$	137.25	$	139.49	-1.6%
15	Marriott Tysons Corner	$	164.43	$	161.80		1.6%	69.7%	72.7%	-4.1%	$	114.61	$	117.63	-2.6%
16	Marriott Houston	$	96.82	$	104.34		-7.2%	78.5%	76.8%	2.2%	$	76.00	$	80.13	-5.2%
17	Renaissance Long Beach	$	193.19	$	192.44		0.4%	83.9%	82.0%	2.3%	$	162.09	$	157.80	2.7%
18	Embassy Suites Chicago	$	135.24	$	134.33		0.7%	79.8%	76.9%	3.8%	$	107.92	$	103.30	4.5%
19	Hilton Garden Inn Chicago Downtown/Magnificent Mile	$	110.38	$	115.73		-4.6%	77.8%	66.1%	17.7%	$	85.88	$	76.50	12.3%
20	Renaissance Westchester	$	148.90	$	148.18		0.5%	69.7%	61.7%	13.0%	$	103.78	$	91.43	13.5%
21	Embassy Suites La Jolla	$	190.46	$	191.84		-0.7%	83.9%	79.8%	5.1%	$	159.80	$	153.09	4.4%
22	Hilton New Orleans St. Charles	$	195.39	$	186.27		4.9%	83.0%	87.1%	-4.7%	$	162.17	$	162.24	0.0%
23	Marriott Portland	$	165.54	$	173.90		-4.8%	80.9%	80.1%	1.0%	$	133.92	$	139.29	-3.9%
24	Courtyard by Marriott Los Angeles	$	164.41	$	175.22		-6.2%	95.6%	95.3%	0.3%	$	157.18	$	166.98	-5.9%
25	Oceans Edge Resort & Marina	$	290.85	$	254.76		14.2%	90.9%	88.8%	2.4%	$	264.38	$	226.23	16.9%
	25 Hotel Comparable Portfolio (2)	$	204.25	$	205.42		-0.6%	78.6%	78.7%	-0.1%	$	160.54	$	161.67	-0.7%

(1) Operating statistics for the first quarter 2018 are impacted by room renovations at the Hyatt Regency San Francisco, the Marriott Boston Long Wharf and the Renaissance Los Angeles Airport.

(2) 25 Hotel Comparable Portfolio includes all hotels owned by the Company as of March 31, 2018, and includes both the Company's ownership results and prior ownership results for the Oceans Edge Resort & Marina acquired in July 2017. The Company obtained prior ownership results from the previous owner of the hotel during the due diligence period before the acquisition date. The Company performed a limited review of the information as part of its analysis of the acquisition.

PROPERTY-LEVEL OPERATING STATISTICS							Page 33

Supplemental Financial Information
May 7, 2018

OPERATING STATISTICS BY BRAND & GEOGRAPHY

OPERATING STATISTICS BY BRAND & GEOGRAPHY							Page 34

Supplemental Financial Information
May 7, 2018

Operating Statistics by Brand
Q1 2018/2017

		For the Three Months Ended March 31,
		2018					2017
	# of Hotels	Occ	ADR		RevPAR		Occ	ADR		RevPAR		RevPAR Change
Marriott (1)	13	76.2%	$	209.85	$	159.91	80.3%	$	206.95	$	166.18	-3.8%
Hilton	7	84.0%	$	190.50	$	160.02	80.4%	$	192.58	$	154.83	3.3%
Hyatt	3	80.6%	$	229.06	$	184.62	78.5%	$	245.13	$	192.43	-4.1%
Other (2)	2	72.9%	$	183.60	$	133.84	66.0%	$	177.31	$	117.02	14.4%
25 Hotel Comparable Portfolio (3)	25	78.6%	$	204.25	$	160.54	78.7%	$	205.42	$	161.67	-0.7%

(1) Marriott excludes the Marriott Park City, sold in June 2017, as well as the Marriott Philadelphia and the Marriott Quincy, both of which were sold in January 2018.

(2) Other includes the Boston Park Plaza as well as both the Company's ownership results and prior ownership results for the Oceans Edge Resort & Marina acquired in July 2017. The Company obtained prior ownership results from the previous owner of the hotel during the due diligence period before the acquisition date. The Company performed a limited review of the information as part of its analysis of the acquisition. Other excludes the Fairmont Newport Beach sold in February 2017.

(3) 25 Hotel Comparable Portfolio includes all hotels owned by the Company as of March 31, 2018.

OPERATING STATISTICS BY BRAND & GEOGRAPHY							Page 35

Supplemental Financial Information
May 7, 2018

25 Hotel Comparable Portfolio Property-Level Trailing 12 Month Adjusted EBITDAre Contribution by Brand

OPERATING STATISTICS BY BRAND & GEOGRAPHY							Page 36

Supplemental Financial Information
May 7, 2018

Operating Statistics by Region
Q1 2018/2017

		For the Three Months Ended March 31,
		2018					2017
	# of Hotels	Occ		ADR		RevPAR	Occ		ADR		RevPAR	RevPAR Change
California (1)	7	84.6%	$	222.56	$	188.29	84.2%	$	229.94	$	193.61	-2.7%
Other West (2)	4	82.3%	$	240.03	$	197.54	78.0%	$	213.88	$	166.83	18.4%
Midwest	3	77.0%	$	126.90	$	97.71	68.0%	$	128.37	$	87.29	11.9%
East (3)	11	74.0%	$	195.07	$	144.35	77.4%	$	198.89	$	153.94	-6.2%
25 Hotel Comparable Portfolio (4)	25	78.6%	$	204.25	$	160.54	78.7%	$	205.42	$	161.67	-0.7%

(1) California excludes the Fairmont Newport Beach, sold in February 2017.

(2) Other West excludes the Marriott Park City, sold in June 2017.

(3) East includes prior ownership results obtained by the Company from the previous owner of the Oceans Edge Resort & Marina during the due diligence period before the acquisition date. The Company performed a limited review of the information as part of its analysis of the acquisition.

(4) 25 Hotel Comparable Portfolio includes all hotels owned by the Company as of March 31, 2018.

OPERATING STATISTICS BY BRAND & GEOGRAPHY							Page 37

Supplemental Financial Information
May 7, 2018

PROPERTY-LEVEL ADJUSTED EBITDAre  &

ADJUSTED EBITDAre MARGINS

PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS							Page 38

Supplemental Financial Information
May 7, 2018

Property-Level Adjusted EBITDAre
Q1 2018/2017

	Hotels sorted by number of rooms		For the Three Months Ended March 31,
	(In thousands)		2018		2017
			Hotel Adjusted EBITDAre (2)		Hotel Adjusted EBITDAre (2)	% Change
1	Hilton San Diego Bayfront (1)	$	13,784	$	13,049	6%
2	Boston Park Plaza		(321)		(106)	-203%
3	Renaissance Washington DC		4,636		7,356	-37%
4	Hyatt Regency San Francisco (3)		6,855		7,775	-12%
5	Renaissance Orlando at SeaWorld ®		10,169		8,850	15%
6	Renaissance Harborplace		1,105		2,315	-52%
7	Wailea Beach Resort		12,645		8,655	46%
8	Renaissance Los Angeles Airport (3)		1,531		2,110	-27%
9	JW Marriott New Orleans		4,586		4,996	-8%
10	Hilton North Houston		956		945	1%
11	Hilton Times Square		91		186	-51%
12	Hyatt Centric Chicago Magnificent Mile		(815)		(949)	14%
13	Marriott Boston Long Wharf (3)		(1,295)		2,561	-151%
14	Hyatt Regency Newport Beach (3)		2,205		2,400	-8%
15	Marriott Tysons Corner		1,674		1,717	-3%
16	Marriott Houston		777		841	-8%
17	Renaissance Long Beach		2,426		2,400	1%
18	Embassy Suites Chicago (3)		332		762	-56%
19	Hilton Garden Inn Chicago Downtown/Magnificent Mile		(221)		(32)	-591%
20	Renaissance Westchester		5		(17)	129%
21	Embassy Suites La Jolla		2,254		2,255	0%
22	Hilton New Orleans St. Charles		1,730		1,808	-4%
23	Marriott Portland		1,290		1,456	-11%
24	Courtyard by Marriott Los Angeles		978		1,183	-17%
25	Oceans Edge Resort & Marina (3)		3,073		1,178	161%
	25 Hotel Comparable Portfolio (4)		70,450		73,694	-4%
	Less: Prior Ownership Results (5)
	Oceans Edge Resort & Marina		—		(1,178)	N/A
	Add: Sold Hotels (6)
	Fairmont Newport Beach		—		1,019	-100%
	Marriott Park City		—		2,470	-100%
	Marriott Philadelphia		(352)		839	-142%
	Marriott Quincy		(591)		571	-204%
	Actual Portfolio (7)	$	69,507	$	77,415	-10%

*Footnotes on page 40

PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS							Page 39

Supplemental Financial Information
May 7, 2018

Property-Level Adjusted EBITDAre
Q1 2018/2017 Footnotes

(1) Reflects 100% of the operating results for the Hilton San Diego Bayfront.

(2) Reconciliations to Net Income (Loss) provided on pages 43 and 44.

(3) Hotel Adjusted EBITDAre for the first quarter 2018 is impacted by room renovations at the Hyatt Regency San Francisco, the Marriott Boston Long Wharf and the Renaissance Los Angeles Airport, by $1.5 million in business interruption proceeds recognized by the Oceans Edge Resort & Marina, and by a total of $19,000 in non-current year property tax credits, net of appeal fees, received at the following hotels: Embassy Suites Chicago $14,000; and Hyatt Regency Newport Beach $5,000.

(4) 25 Hotel Comparable Portfolio includes all hotels owned by the Company as of March 31, 2018.

(5) Prior Ownership Results include results generated by the Oceans Edge Resort & Marina before the Company's acquisition of the hotel in July 2017. The Company obtained prior ownership information from the previous owner of the hotel during the due diligence period before the acquisition date. The Company performed a limited review of the information as part of its analysis of the acquisition.

(6) Sold Hotels for both first quarters 2018 and 2017 include results for the Marriott Philadelphia and the Marriott Quincy, both of which were sold in January 2018. Sold Hotels for the first quarter 2017 also include results for the Fairmont Newport Beach and the Marriott Park City, sold in February 2017 and June 2017, respectively.

(7) Actual Portfolio for the first quarter 2018 includes all 25 hotels owned by the Company as of March 31, 2018, plus results generated by the Marriott Philadelphia and the Marriott Quincy before their sale in January 2018. Actual Portfolio for the first quarter 2017 includes all 27 hotels owned by the Company as of March 31, 2017, plus results generated by the Fairmont Newport Beach before its sale in February 2017.

PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS							Page 40

Supplemental Financial Information
May 7, 2018

Property-Level Adjusted EBITDAre Margins
Q1 2018/2017

	Hotels sorted by number of rooms	For the Three Months Ended March 31,
		2018	2017
		Hotel Adjusted EBITDAre Margin	Hotel Adjusted EBITDAre Margin	Change in bps
1	Hilton San Diego Bayfront (1)	34.0%	34.5%	(50) bps
2	Boston Park Plaza	-2.2%	-0.8%	(140) bps
3	Renaissance Washington DC	24.0%	32.7%	(870) bps
4	Hyatt Regency San Francisco (2)	25.3%	27.4%	(210) bps
5	Renaissance Orlando at SeaWorld ®	39.5%	38.4%	110  bps
6	Renaissance Harborplace	12.9%	22.0%	(910) bps
7	Wailea Beach Resort	43.3%	38.1%	520  bps
8	Renaissance Los Angeles Airport (2)	20.5%	26.2%	(570) bps
9	JW Marriott New Orleans	43.0%	44.2%	(120) bps
10	Hilton North Houston	18.5%	18.5%	— bps
11	Hilton Times Square	0.9%	1.9%	(100) bps
12	Hyatt Centric Chicago Magnificent Mile	-15.1%	-20.1%	500  bps
13	Marriott Boston Long Wharf (2)	-21.0%	23.9%	(4,490) bps
14	Hyatt Regency Newport Beach (2)	24.8%	25.8%	(100) bps
15	Marriott Tysons Corner	30.2%	31.5%	(130) bps
16	Marriott Houston	22.7%	22.9%	(20) bps
17	Renaissance Long Beach	32.4%	32.7%	(30) bps
18	Embassy Suites Chicago (2)	7.7%	17.9%	(1,020) bps
19	Hilton Garden Inn Chicago Downtown/Magnificent Mile	-6.8%	-1.1%	(570) bps
20	Renaissance Westchester	0.1%	-0.4%	50  bps
21	Embassy Suites La Jolla	39.2%	41.0%	(180) bps
22	Hilton New Orleans St. Charles	42.5%	44.1%	(160) bps
23	Marriott Portland	35.7%	39.0%	(330) bps
24	Courtyard by Marriott Los Angeles	31.3%	35.8%	(450) bps
25	Oceans Edge Resort & Marina (2) (3)	47.0%	29.6%	1,740  bps
	25 Hotel Comparable Portfolio (4)	26.0%	27.7%	(170) bps
	25 Hotel Comparable Portfolio, excluding prior year property tax adjustments, net (5)	26.0%	27.7%	(170) bps

*Footnotes on page 42

PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS							Page 41

Supplemental Financial Information
May 7, 2018

Property-Level Adjusted EBITDAre Margins
Q1 2018/2017 Footnotes

(1) Reflects 100% of the operating results for the Hilton San Diego Bayfront.

(2) Hotel Adjusted EBITDAre Margins for the first quarter 2018 are impacted by room renovations at the Hyatt Regency San Francisco, the Marriott Boston Long Wharf and the Renaissance Los Angeles Airport, by $1.5 million in business interruption proceeds recognized by the Oceans Edge Resort & Marina, and by a total of $19,000 in non-current year property tax credits, net of appeal fees, received at the following hotels: Embassy Suites Chicago $14,000; and Hyatt Regency Newport Beach $5,000.

(3) Includes results generated by the Oceans Edge Resort & Marina before the Company's acquisition of the hotel in July 2017. The Company obtained prior ownership information from the previous owner of the hotel during the due diligence period before the acquisition date. The Company performed a limited review of the information as part of its analysis of the acquisition.

(4) 25 Hotel Comparable Portfolio includes all hotels owned by the Company as of March 31, 2018.

(5) 25 Hotel Comparable Portfolio, excluding prior year property tax adjustments, net represents the 25 Hotel Comparable Portfolio adjusted to exclude the prior year property tax related items noted in Footnote 2.

PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS							Page 42

Supplemental Financial Information
May 7, 2018

Property-Level Adjusted EBITDAre Reconciliation Q1 2018

	Hotels sorted by number of rooms		For the Three Months Ended March 31, 2018
	(In thousands)					Plus:		Plus:		Plus:		Equals:		Hotel
		Total		Net Income /		Other						Hotel		Adjusted EBITDAre
		Revenues		(Loss)		Adjustments (2)		Depreciation		Interest Expense		Adjusted EBITDAre		Margins
1	Hilton San Diego Bayfront (1)	$	40,508	$	9,779	$	(289)	$	2,552	$	1,742	$	13,784	34.0%
2	Boston Park Plaza		14,647		(4,870)		—		4,549		—		(321)	-2.2%
3	Renaissance Washington DC		19,348		446		—		2,435		1,755		4,636	24.0%
4	Hyatt Regency San Francisco (3)		27,098		3,948		—		2,907		—		6,855	25.3%
5	Renaissance Orlando at SeaWorld ®		25,712		7,998		—		2,171		—		10,169	39.5%
6	Renaissance Harborplace		8,593		(344)		—		1,449		—		1,105	12.9%
7	Wailea Beach Resort		29,196		8,611		—		4,034		—		12,645	43.3%
8	Renaissance Los Angeles Airport (3)		7,456		740		—		791		—		1,531	20.5%
9	JW Marriott New Orleans		10,675		2,682		1		1,002		901		4,586	43.0%
10	Hilton North Houston		5,169		733		2		221		—		956	18.5%
11	Hilton Times Square		10,122		(3,733)		70		2,559		1,195		91	0.9%
12	Hyatt Centric Chicago Magnificent Mile		5,392		(2,315)		—		1,500		—		(815)	-15.1%
13	Marriott Boston Long Wharf (3)		6,176		(3,476)		—		2,181		—		(1,295)	-21.0%
14	Hyatt Regency Newport Beach (3)		8,876		1,321		—		884		—		2,205	24.8%
15	Marriott Tysons Corner		5,538		967		—		707		—		1,674	30.2%
16	Marriott Houston		3,424		488		2		287		—		777	22.7%
17	Renaissance Long Beach		7,490		1,574		—		852		—		2,426	32.4%
18	Embassy Suites Chicago (3)		4,314		(434)		—		766		—		332	7.7%
19	Hilton Garden Inn Chicago Downtown/Magnificent Mile		3,231		(1,009)		—		788		—		(221)	-6.8%
20	Renaissance Westchester		4,761		(872)		—		877		—		5	0.1%
21	Embassy Suites La Jolla		5,751		581		—		1,028		645		2,254	39.2%
22	Hilton New Orleans St. Charles		4,073		1,134		—		596		—		1,730	42.5%
23	Marriott Portland		3,609		885		—		405		—		1,290	35.7%
24	Courtyard by Marriott Los Angeles		3,125		685		—		293		—		978	31.3%
25	Oceans Edge Resort & Marina (3)		6,539		2,248		65		760		—		3,073	47.0%
	25 Hotel Comparable Portfolio (4)		270,823		27,767		(149)		36,594		6,238		70,450	26.0%
	Add: Sold Hotels (5)
	Marriott Philadelphia		232		(352)		—		—		—		(352)	-151.7%
	Marriott Quincy		371		(591)		—		—		—		(591)	-159.3%
	Actual Portfolio (6)	$	271,426	$	26,824	$	(149)	$	36,594	$	6,238	$	69,507	25.6%

*Footnotes on page 45

PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS							Page 43

Supplemental Financial Information
May 7, 2018

Property-Level Adjusted EBITDAre Reconciliation Q1 2017

	Hotels sorted by number of rooms		For the Three Months Ended March 31, 2017
	(In thousands)						Plus:		Plus:		Plus:		Equals:		Hotel
		Total			Net Income /		Other						Hotel		Adjusted EBITDAre
		Revenues			(Loss)		Adjustments(7)		Depreciation		Interest Expense		Adjusted EBITDAre		Margins
1	Hilton San Diego Bayfront (1)	$		37,815	$	8,010	$	(290)	$	3,499	$	1,830	$	13,049	34.5%
2	Boston Park Plaza			14,040		(5,216)		—		5,110		—		(106)	-0.8%
3	Renaissance Washington DC			22,467		3,071		—		2,491		1,794		7,356	32.7%
4	Hyatt Regency San Francisco			28,426		4,753		—		3,022		—		7,775	27.4%
5	Renaissance Orlando at SeaWorld ®			23,039		6,630		—		2,220		—		8,850	38.4%
6	Renaissance Harborplace			10,531		784		—		1,531		—		2,315	22.0%
7	Wailea Beach Resort			22,720		4,629		—		4,026		—		8,655	38.1%
8	Renaissance Los Angeles Airport			8,050		1,421		—		689		—		2,110	26.2%
9	JW Marriott New Orleans			11,312		2,920		1		1,161		914		4,996	44.2%
10	Hilton North Houston			5,119		127		—		818		—		945	18.5%
11	Hilton Times Square			9,680		(3,653)		77		2,561		1,201		186	1.9%
12	Hyatt Centric Chicago Magnificent Mile			4,711		(2,386)		—		1,437		—		(949)	-20.1%
13	Marriott Boston Long Wharf			10,704		275		—		2,013		273		2,561	23.9%
14	Hyatt Regency Newport Beach			9,291		1,525		—		875		—		2,400	25.8%
15	Marriott Tysons Corner			5,458		967		—		750		—		1,717	31.5%
16	Marriott Houston			3,669		270		—		571		—		841	22.9%
17	Renaissance Long Beach			7,342		1,600		—		800		—		2,400	32.7%
18	Embassy Suites Chicago			4,246		(136)		—		898		—		762	17.9%
19	Hilton Garden Inn Chicago Downtown/Magnificent Mile			2,851		(803)		—		771		—		(32)	-1.1%
20	Renaissance Westchester			4,279		(874)		—		857		—		(17)	-0.4%
21	Embassy Suites La Jolla			5,499		579		—		1,019		657		2,255	41.0%
22	Hilton New Orleans St. Charles			4,098		1,205		—		603		—		1,808	44.1%
23	Marriott Portland			3,729		1,067		—		389		—		1,456	39.0%
24	Courtyard by Marriott Los Angeles			3,305		893		—		290		—		1,183	35.8%
25	Oceans Edge Resort & Marina			3,980		446		—		732		—		1,178	29.6%
	25 Hotel Comparable Portfolio (4)			266,361		28,104		(212)		39,133		6,669		73,694	27.7%
	Less: Prior Ownership Results (8)
	Oceans Edge Resort & Marina			(3,980)		(446)		—		(732)		—		(1,178)	29.6%
	Add: Sold Hotels (5)
	Fairmont Newport Beach			3,541		1,019		—		—		—		1,019	28.8%
	Marriott Park City			5,196		1,947		—		523		—		2,470	47.5%
	Marriott Philadelphia			4,120		211		—		628		—		839	20.4%
	Marriott Quincy			5,487		(556)		—		1,127		—		571	10.4%
	Actual Portfolio (6)	$		280,725	$	30,279	$	(212)	$	40,679	$	6,669	$	77,415	27.6%

*Footnotes on page 45

PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS							Page 44

Supplemental Financial Information
May 7, 2018

Property-Level Adjusted EBITDAre Reconciliation
Q1 2018/2017 Footnotes

(1) Includes 100% of the operating results for the Hilton San Diego Bayfront.

(2) Other Adjustments for the first quarter 2018 include: a total of $0.1 million in amortization of lease intangibles at the Hilton Times Square and JW Marriott New Orleans; a total of $(0.3) million in noncash ground rent at the Hilton San Diego Bayfront, Hilton Times Square and JW Marriott New Orleans; and a total of $69,000 in hurricane-related uninsured losses at the Houston Marriott, Houston North Hilton and Oceans Edge Resort & Marina.

(3) Hotel Adjusted EBITDAre for the first quarter 2018 is impacted by room renovations at the Hyatt Regency San Francisco, the Marriott Boston Long Wharf and the Renaissance Los Angeles Airport, by $1.5 million in business interruption proceeds recognized by the Oceans Edge Resort & Marina, and by a total of $19,000 in non-current year property tax credits, net of appeal fees, received at the following hotels: Embassy Suites Chicago $14,000; and Hyatt Regency Newport Beach $5,000.

(4) 25 Hotel Comparable Portfolio includes all hotels owned by the Company as of March 31, 2018.

(5) Sold Hotels for both first quarters 2018 and 2017 include results for the Marriott Philadelphia and the Marriott Quincy, both of which were sold in January 2018. Sold Hotels for the first quarter 2017 also include results for the Fairmont Newport Beach and the Marriott Park City, sold in February 2017 and June 2017, respectively.

(6) Actual Portfolio for the first quarter 2018 includes all 25 hotels owned by the Company as of March 31, 2018, plus results generated by the Marriott Philadelphia and the Marriott Quincy before their sale in January 2018. Actual Portfolio for the first quarter 2017 includes all 27 hotels owned by the Company as of March 31, 2017, plus results generated by the Fairmont Newport Beach before its sale in February 2017.

(7) Other Adjustments for the first quarter 2017 include: 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 $(0.3) million in noncash ground rent at the Hilton San Diego Bayfront, Hilton Times Square and JW Marriott New Orleans.

(8) Prior Ownership Results include results generated by the Oceans Edge Resort & Marina before the Company's acquisition of the hotel in July 2017. The Company obtained prior ownership information from the previous owner of the hotel during the due diligence period before the acquisition date. The Company performed a limited review of the information as part of its analysis of the acquisition. The Company determined the amount to include as pro forma depreciation expense by allocating the Company's purchase price of the hotel between the various components of the hotel (i.e. land, building, furniture, fixtures and equipment) based on a purchase price allocation report provided by an independent valuation specialist. Depreciable assets were then given lives ranging from one to forty years.

PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS							Page 45