Sunstone Hotel Investors (SHO) 8-K Sunstone Hotel Investors Reports Results for Fourth Quarter and Full Year 2018

Exhibit 99.2

Supplemental Financial Information
February 12, 2019

Supplemental Financial Information For the quarter and year ended December 31, 2018 February 12, 2019

Supplemental Financial Information
February 12, 2019

Table of Contents

CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR	3
About Sunstone	4
Forward-Looking Statement	5
Non-GAAP Financial Measures	6
CORPORATE FINANCIAL INFORMATION	9
Condensed Consolidated Balance Sheets Q4 2018 – Q4 2017	10
Consolidated Statements of Operations Q4 and FY 2018/2017	12
Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest  Q4 and FY 2018/2017	13
Reconciliation of Net Income to FFO and Adjusted FFO Attributable to Common Stockholders Q4 and FY 2018/2017	14
Pro Forma Consolidated Statements of Operations Q1 2018 – Q4 2018,  FY 2018/2017	15
Pro Forma Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest Q4 2018	16
Pro Forma Reconciliation of Net Income to FFO and Adjusted FFO Attributable to Common Stockholders Q4 2018	17
Pro Forma Reconciliation of Net Income to EBITDAre, Adjusted EBITDAre,  Excluding Noncontrolling Interest, FFO and Adjusted FFO Attributable to Common Stockholders Q4 2018 Footnotes	18
Pro Forma Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest FY 2018	19
Pro Forma Reconciliation of Net Income to FFO and Adjusted FFO Attributable to Common Stockholders FY 2018	20
Pro Forma Reconciliation of Net Income to EBITDAre, Adjusted EBITDAre, Excluding Noncontrolling Interest, FFO and Adjusted FFO Attributable to Common Stockholders FY 2018 Footnotes	21
Pro Forma Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest FY 2017	22
Pro Forma Reconciliation of Net Income to FFO and Adjusted FFO Attributable to Common Stockholders FY 2017	23
Pro Forma Reconciliation of Net Income to EBITDAre, Adjusted EBITDAre, Excluding Noncontrolling Interest, FFO and Adjusted FFO Attributable to Common Stockholders FY 2017 Footnotes	24
EARNINGS GUIDANCE	25
Earnings Guidance for Q1 and FY 2019	26

Supplemental Financial Information
February 12, 2019

Reconciliation of Net Income to Adjusted EBITDAre, Excluding Noncontrolling Interest and Adjusted FFO Attributable to Common Stockholders Q1 and FY 2019	28
CAPITALIZATION	29
Comparative Capitalization Q4 2018 – Q4 2017	30
Consolidated Debt Summary Schedule	31
Consolidated Amortization and Debt Maturity Schedule as of December 31, 2018	32
PROPERTY-LEVEL DATA	33
Hotel Information as of February 12, 2019	34
PROPERTY-LEVEL OPERATING STATISTICS	35
Property-Level Operating Statistics Q4 2018/2017	36
Property-Level Operating Statistics FY 2018/2017	37
OPERATING STATISTICS BY BRAND & GEOGRAPHY	38
Operating Statistics by Brand Q4 and FY 2018/2017	39
21 Hotel Comparable Portfolio Property-Level FY 2018 Adjusted EBITDAre Contribution by Brand	40
Operating Statistics by Region Q4 and FY 2018/2017	41
PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS	42
Property-Level Adjusted EBITDAre  Q4 and FY 2018/2017	43
Property-Level Adjusted EBITDAre  Q4 and FY 2018/2017 Footnotes	44
Property-Level Adjusted EBITDAre Margins Q4 and FY 2018/2017	45
Property-Level Adjusted EBITDAre Margins Q4 and FY 2018/2017 Footnotes	46
Property-Level Adjusted EBITDAre Reconciliation Q4 2018	47
Property-Level Adjusted EBITDAre Reconciliation Q4 2017	48
Property-Level Adjusted EBITDAre Reconciliation Q4 2018/2017 Footnotes	49
Property-Level Adjusted EBITDAre Reconciliation FY 2018	50
Property-Level Adjusted EBITDAre Reconciliation FY 2017	51
Property-Level Adjusted EBITDAre Reconciliation FY 2018/2017 Footnotes	52

Supplemental Financial Information
February 12, 2019

CORPORATE PROFILE, FINANCIAL DISCLOSURES,
AND SAFE HARBOR

CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR							Page 3

Supplemental Financial Information
February 12, 2019

About Sunstone

Sunstone Hotel Investors, Inc. (NYSE: SHO) is a lodging real estate investment trust (“REIT”) that as of February 12, 2019 has interests in 21 hotels comprised of 10,780 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 hospitality 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. Our strategy is to maximize stockholder value through focused asset management and disciplined capital recycling, which is likely to include selective acquisitions and dispositions, while maintaining balance sheet flexibility and strength. Our goal is to maintain appropriate leverage and financial flexibility to position the Company to create value throughout all phases of the operating and financial cycles.

Corporate Headquarters
200 Spectrum Center Drive, 21st Floor
Irvine, CA 92618
(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
February 12, 2019

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, government shutdown, 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; risks impacting our ability to pay anticipated future dividends; and other risks and uncertainties associated with our business described in the Company’s filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All forward-looking information in this presentation is as of February 12, 2019, 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
February 12, 2019

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
February 12, 2019

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; the write-off of development costs associated with abandoned projects; property-level restructuring, severance and management transition costs; lease terminations; and property insurance proceeds or uninsured losses.

CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR							Page 7

Supplemental Financial Information
February 12, 2019

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 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 21 Hotel Comparable Portfolio is comprised of all hotels we owned as of December 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
February 12, 2019

CORPORATE FINANCIAL INFORMATION

CORPORATE FINANCIAL INFORMATION							Page 9

Supplemental Financial Information
February 12, 2019

Condensed Consolidated Balance Sheets
Q4 2018 – Q4 2017 

(In thousands)	December 31, 2018 (1)		September 30, 2018 (2)		June 30, 2018 (3)		March 31, 2018 (4)		December 31, 2017 (5)
Assets
Investment in hotel properties:
Land	$	611,993	$	615,641	$	604,866	$	605,054	$	605,054
Buildings & improvements		2,983,308		3,013,659		3,039,104		3,067,473		3,049,569
Furniture, fixtures, & equipment		486,441		489,153		488,042		496,492		484,749
Other		117,543		132,813		117,962		115,365		103,631
		4,199,285		4,251,266		4,249,974		4,284,384		4,243,003
Less accumulated depreciation & amortization		(1,168,287)		(1,177,644)		(1,160,793)		(1,173,497)		(1,136,937)
		3,030,998		3,073,622		3,089,181		3,110,887		3,106,066
Other noncurrent assets, net		33,361		35,019		35,102		33,016		23,622
Current assets:
Cash and cash equivalents		809,316		650,691		544,900		467,050		488,002
Restricted cash		53,053		68,794		74,989		79,336		71,309
Other current assets, net		46,105		57,175		59,052		62,496		46,006
Assets held for sale, net		—		33,312		42,389		—		122,807
Total assets	$	3,972,833	$	3,918,613	$	3,845,613	$	3,752,785	$	3,857,812

*Footnotes on following page.

CORPORATE FINANCIAL INFORMATION							Page 10

Supplemental Financial Information
February 12, 2019

Condensed Consolidated Balance Sheets
Q4 2018– Q4 2017 (cont.)

(In thousands)	December 31, 2018 (1)		September 30, 2018 (2)		June 30, 2018 (3)		March 31, 2018 (4)		December 31, 2017 (5)
Liabilities
Current liabilities:
Current portion of notes payable, net	$	5,838	$	5,913	$	5,653	$	5,569	$	5,477
Other current liabilities		226,887		118,050		118,553		110,685		236,893
Liabilities of assets held for sale		—		3,459		4,061		—		189
Total current liabilities		232,725		127,422		128,267		116,254		242,559
Notes payable, less current portion, net		971,225		972,814		974,309		975,779		977,282
Capital lease obligations, less current portion		27,009		26,956		26,904		26,854		26,804
Other liabilities		30,703		30,981		30,802		31,041		28,989
Total liabilities		1,261,662		1,158,173		1,160,282		1,149,928		1,275,634
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		2,282		2,282		2,283		2,256		2,253
Additional paid in capital		2,728,684		2,726,523		2,724,379		2,677,099		2,679,221
Retained earnings		1,182,722		1,106,391		1,017,181		968,293		932,277
Cumulative dividends and distributions		(1,440,202)		(1,313,741)		(1,299,121)		(1,284,501)		(1,270,013)
Total stockholders' equity		2,663,486		2,711,455		2,634,722		2,553,147		2,533,738
Noncontrolling interest in consolidated joint venture		47,685		48,985		50,609		49,710		48,440
Total equity		2,711,171		2,760,440		2,685,331		2,602,857		2,582,178
Total liabilities and equity	$	3,972,833	$	3,918,613	$	3,845,613	$	3,752,785	$	3,857,812

(1) As presented on Form 10-K to be filed in February 2019.

(2) As presented on Form 10-Q filed on November 6, 2018.

(3) As presented on Form 10-Q filed on August 1, 2018.

(4) As presented on Form 10-Q filed on May 8, 2018.

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

CORPORATE FINANCIAL INFORMATION							Page 11

Supplemental Financial Information
February 12, 2019

Consolidated Statements of Operations
Q4 and FY 2018/2017

	Three Months Ended December 31,				Year Ended December 31,
(In thousands, except per share data)	2018		2017		2018		2017
Revenues
Room	$	191,132	$	199,532	$	799,369	$	829,320
Food and beverage		67,199		73,990		284,668		296,933
Other operating		22,521		16,668		75,016		67,385
Total revenues		280,852		290,190		1,159,053		1,193,638
Operating expenses
Room		50,281		53,019		210,204		213,301
Food and beverage		46,187		50,457		193,486		201,225
Other operating		4,681		4,272		17,169		16,392
Advertising and promotion		13,708		13,762		55,523		58,572
Repairs and maintenance		10,627		11,653		43,111		46,298
Utilities		6,791		7,575		29,324		30,419
Franchise costs		8,442		9,314		35,423		36,681
Property tax, ground lease and insurance		18,756		20,239		82,414		83,716
Other property-level expenses		31,414		33,510		132,419		138,525
Corporate overhead		8,191		7,232		30,247		28,817
Depreciation and amortization		36,268		38,583		146,449		158,634
Impairment loss		—		5,626		1,394		40,053
Total operating expenses		235,346		255,242		977,163		1,052,633
Gain on sale of assets		48,174		—		116,961		45,474
Operating income		93,680		34,948		298,851		186,479
Interest and other income		3,451		1,743		10,500		4,340
Interest expense		(16,081)		(10,425)		(47,690)		(51,766)
Loss on extinguishment of debt		(835)		(820)		(835)		(824)
Income before income taxes and discontinued operations		80,215		25,446		260,826		138,229
Income tax (provision) benefit, net		(2,459)		(4,766)		(1,767)		7,775
Income from continuing operations		77,756		20,680		259,059		146,004
Income from discontinued operations		—		—		—		7,000
Net income		77,756		20,680		259,059		153,004
Income from consolidated joint venture attributable to noncontrolling interest		(1,425)		(1,284)		(8,614)		(7,628)
Preferred stock dividends		(3,208)		(3,208)		(12,830)		(12,830)
Income attributable to common stockholders	$	73,123	$	16,188	$	237,615	$	132,546
Basic and diluted per share amounts:
Income from continuing operations attributable to common stockholders	$	0.32	$	0.07	$	1.05	$	0.56
Income from discontinued operations		—		—		—		0.03
Basic and diluted income attributable to common stockholders per common share	$	0.32	$	0.07	$	1.05	$	0.59
Basic and diluted weighted average common shares outstanding		227,068		224,147		225,924		221,898
Distributions declared per common share	$	0.54	$	0.58	$	0.69	$	0.73

CORPORATE FINANCIAL INFORMATION							Page 12

Supplemental Financial Information
February 12, 2019

Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest
Q4 and FY 2018/2017

	Three Months Ended December 31,				Year Ended December 31,
(In thousands)		2018		2017		2018		2017
Net income	$	77,756	$	20,680	$	259,059	$	153,004
Operations held for investment:
Depreciation and amortization		36,268		38,583		146,449		158,634
Amortization of lease intangibles		65		62		93		251
Interest expense		16,081		10,425		47,690		51,766
Income tax provision (benefit), net		2,459		4,766		1,767		(7,775)
Gain on sale of assets, net		(48,176)		(11)		(116,916)		(45,747)
Impairment loss		—		5,626		1,394		40,053
EBITDAre		84,453		80,131		339,536		350,186
Operations held for investment:
Amortization of deferred stock compensation		2,069		1,854		9,007		8,042
Amortization of favorable and unfavorable contracts, net		(5)		3		(2)		218
Noncash ground rent		(287)		(281)		(1,147)		(1,122)
Capital lease obligation interest - cash ground rent		(593)		(590)		(2,361)		(1,867)
Loss on extinguishment of debt		835		820		835		824
Hurricane-related uninsured losses (insurance proceeds), net		—		41		(990)		1,690
Closing costs - completed acquisition		—		—		—		729
Prior year property tax adjustments, net		(320)		(251)		(203)		(800)
Property-level restructuring, severance and management transition costs		29		—		29		—
Noncontrolling interest:
Income from consolidated joint venture attributable to noncontrolling interest		(1,425)		(1,284)		(8,614)		(7,628)
Depreciation and amortization		(641)		(620)		(2,556)		(2,767)
Interest expense		(545)		(482)		(1,982)		(1,950)
Noncash ground rent		73		73		290		290
Loss on extinguishment of debt		—		(205)		—		(205)
Discontinued operations:
Gain on sale of assets		—		—		—		(7,000)
		(810)		(922)		(7,694)		(11,546)
Adjusted EBITDAre, excluding noncontrolling interest	$	83,643	$	79,209	$	331,842	$	338,640

CORPORATE FINANCIAL INFORMATION							Page 13

Supplemental Financial Information
February 12, 2019

Reconciliation of Net Income to FFO and Adjusted FFO Attributable to Common Stockholders
Q4 and FY 2018/2017

	Three Months Ended December 31,				Year Ended December 31,
(In thousands, except per share data)		2018		2017		2018		2017
Net income	$	77,756	$	20,680	$	259,059	$	153,004
Preferred stock dividends		(3,208)		(3,208)		(12,830)		(12,830)
Operations held for investment:
Real estate depreciation and amortization		36,020		38,486		145,827		158,177
Amortization of lease intangibles		65		62		93		251
Gain on sale of assets, net		(48,176)		(11)		(116,916)		(45,747)
Impairment loss		—		5,626		1,394		40,053
Noncontrolling interest:
Income from consolidated joint venture attributable to noncontrolling interest		(1,425)		(1,284)		(8,614)		(7,628)
Real estate depreciation and amortization		(641)		(620)		(2,556)		(2,767)
Discontinued operations:
Gain on sale of assets		—		—		—		(7,000)
FFO attributable to common stockholders		60,391		59,731		265,457		275,513
Operations held for investment:
Amortization of favorable and unfavorable contracts, net		(5)		3		(2)		218
Noncash ground rent		(287)		(281)		(1,147)		(1,122)
Noncash interest on derivatives and capital lease obligations, net		3,805		(1,777)		(1,190)		3,106
Loss on extinguishment of debt		835		820		835		824
Hurricane-related uninsured losses (insurance proceeds), net		—		41		(990)		1,690
Closing costs - completed acquisition		—		—		—		729
Prior year property tax adjustments, net		(320)		(251)		(203)		(800)
Property-level restructuring, severance and management transition costs		29		—		29		—
Noncash income tax provision (benefit), net		2,232		4,393		1,132		(9,235)
Noncontrolling interest:
Noncash ground rent		73		73		290		290
Noncash interest on derivative, net		—		(25)		(1)		(30)
Loss on extinguishment of debt		—		(205)		—		(205)
		6,362		2,791		(1,247)		(4,535)
Adjusted FFO attributable to common stockholders	$	66,753	$	62,522	$	264,210	$	270,978
FFO attributable to common stockholders per diluted share	$	0.27	$	0.27	$	1.17	$	1.24
Adjusted FFO attributable to common stockholders per diluted share	$	0.29	$	0.28	$	1.17	$	1.22
Basic weighted average shares outstanding		227,068		224,147		225,924		221,898
Shares associated with unvested restricted stock awards		474		566		377		391
Diluted weighted average shares outstanding		227,542		224,713		226,301		222,289

CORPORATE FINANCIAL INFORMATION							Page 14

Supplemental Financial Information
February 12, 2019

Pro Forma Consolidated Statements of Operations
Q1 2018 – Q4 2018, FY 2018/2017

	Year Ended (1)		Three Months Ended (1)								Year Ended (1)
(Unaudited and in thousands)		December 31,		December 31,		September 30,		June 30,		March 31,		December 31,
		2018		2018		2018		2018		2018		2017
Revenues
Room	$	754,093	$	186,414	$	198,568	$	204,295	$	164,816	$	733,555
Food and beverage		266,086		65,672		60,987		72,136		67,291		253,757
Other operating		71,809		22,265		17,313		16,502		15,729		60,612
Total revenues		1,091,988		274,351		276,868		292,933		247,836		1,047,924
Operating Expenses
Room		198,179		49,264		51,210		50,756		46,949		188,508
Food and beverage		180,458		45,200		43,805		46,088		45,365		171,434
Other expenses		367,104		91,897		91,887		93,846		89,474		354,730
Corporate overhead		30,247		8,191		7,360		7,594		7,102		28,817
Depreciation and amortization		140,712		35,836		35,018		35,269		34,589		140,941
Total operating expenses		916,700		230,388		229,280		233,553		223,479		884,430
Operating Income		175,288		43,963		47,588		59,380		24,357		163,494
Interest and other income		10,500		3,451		2,592		2,966		1,491		4,340
Interest expense		(47,690)		(16,081)		(11,549)		(11,184)		(8,876)		(51,766)
Loss on extinguishment of debt		(835)		(835)		—		—		—		(824)
Income before income taxes and discontinued operations		137,263		30,498		38,631		51,162		16,972		115,244
Income tax (provision) benefit, net		(1,767)		(2,459)		(673)		(2,375)		3,740		7,775
Income from continuing operations		135,496		28,039		37,958		48,787		20,712		123,019
Income from discontinued operations		—		—		—		—		—		7,000
Net Income	$	135,496	$	28,039	$	37,958	$	48,787	$	20,712	$	130,019
Adjusted EBITDAre, excluding noncontrolling interest (2)	$	318,268	$	81,668	$	83,077	$	95,293	$	58,230	$	302,539

(1) Includes the Company's ownership results and prior ownership results for the 21 Hotel Comparable Portfolio, along with the reduction of rental expense due to the acquisitions of previously leased building space and land at the Renaissance Washington DC and JW Marriott New Orleans, respectively. Excludes the Company's ownership results for the Marriott Tysons Corner due to its sale in December 2018, the Hilton North Houston and Marriott Houston (together the “Houston hotels”) due to their sales in October 2018, the Hyatt Regency Newport Beach due to its sale in July 2018, and the Marriott Philadelphia and Marriott Quincy due to their sales in January 2018, along with 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 December 31, 2018 and for the years ended December 31, 2018 and 2017 can be found on pages 16, 19 and 22, respectively, in this supplemental package.

CORPORATE FINANCIAL INFORMATION							Page 15

Supplemental Financial Information
February 12, 2019

Pro Forma Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest
Q4 2018

	Three Months Ended December 31, 2018
				Disposition:		Disposition:
						Marriott
(In thousands)		Actual (1)		Houston Hotels (2)		Tysons Corner (3)		Pro Forma (4)
Net income	$	77,756	$	(322)	$	(49,395)	$	28,039
Operations held for investment:
Depreciation and amortization		36,268		—		(432)		35,836
Amortization of lease intangibles		65		—		—		65
Interest expense		16,081		—		—		16,081
Income tax provision		2,459		—		—		2,459
Gain on sale of assets, net		(48,176)		336		47,838		(2)
EBITDAre		84,453		14		(1,989)		82,478
Operations held for investment:
Amortization of deferred stock compensation		2,069		—		—		2,069
Amortization of favorable and unfavorable contracts, net		(5)		—		—		(5)
Noncash ground rent		(287)		—		—		(287)
Capital lease obligation interest - cash ground rent		(593)		—		—		(593)
Loss on extinguishment of debt		835		—		—		835
Prior year property tax adjustments, net		(320)		—		—		(320)
Property-level restructuring, severance and management transition costs		29		—		—		29
Noncontrolling interest:
Income from consolidated joint venture attributable to noncontrolling interest		(1,425)		—		—		(1,425)
Depreciation and amortization		(641)		—		—		(641)
Interest expense		(545)		—		—		(545)
Noncash ground rent		73		—		—		73
		(810)		—		—		(810)
Adjusted EBITDAre, excluding noncontrolling interest	$	83,643	$	14	$	(1,989)	$	81,668

*Footnotes on page 18

CORPORATE FINANCIAL INFORMATION							Page 16

Supplemental Financial Information
February 12, 2019

Pro Forma Reconciliation of Net Income to FFO and Adjusted FFO Attributable to Common Stockholders 
Q4 2018 

	Three Months Ended December 31, 2018
				Disposition:		Disposition:
						Marriott
(In thousands, except per share amounts)		Actual (1)		Houston Hotels (2)		Tysons Corner (3)		Pro Forma (4)
Net income	$	77,756	$	(322)	$	(49,395)	$	28,039
Preferred stock dividends		(3,208)		—		—		(3,208)
Operations held for investment:
Real estate depreciation and amortization		36,020		—		(432)		35,588
Amortization of lease intangibles		65		—		—		65
Gain on sale of assets, net		(48,176)		336		47,838		(2)
Noncontrolling interest:
Income from consolidated joint venture attributable to noncontrolling interest		(1,425)		—		—		(1,425)
Real estate depreciation and amortization		(641)		—		—		(641)
FFO attributable to common stockholders		60,391		14		(1,989)		58,416
Operations held for investment:
Amortization of favorable and unfavorable contracts, net		(5)		—		—		(5)
Noncash ground rent		(287)		—		—		(287)
Noncash interest on derivatives and capital lease obligations, net		3,805		—		—		3,805
Loss on extinguishment of debt		835		—		—		835
Prior year property tax adjustments, net		(320)		—		—		(320)
Property-level restructuring, severance and management transition costs		29		—		—		29
Noncash income tax provision		2,232		—		—		2,232
Noncontrolling interest:
Noncash ground rent		73		—		—		73
		6,362		—		—		6,362
Adjusted FFO attributable to common stockholders	$	66,753	$	14	$	(1,989)	$	64,778
FFO attributable to common stockholders per diluted share	$	0.27					$	0.26
Adjusted FFO attributable to common stockholders per diluted share	$	0.29					$	0.28
Basic weighted average shares outstanding		227,068						227,068
Shares associated with unvested restricted stock awards		474						474
Diluted weighted average shares outstanding		227,542						227,542

*Footnotes on page 18

CORPORATE FINANCIAL INFORMATION							Page 17

Supplemental Financial Information
February 12, 2019

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

FFO and Adjusted FFO Attributable to Common Stockholders
Q4 2018 Footnotes

(1) Actual represents the Company's ownership results for all 21 hotels owned by the Company as of December 31, 2018, as well as results for the Houston hotels prior to their disposition in October 2018, and the Marriott Tysons Corner prior to its disposition in December 2018.

(2) Disposition: Houston Hotels represents the Company's ownership results for the hotels, sold in October 2018.

(3) Disposition: Marriott Tysons Corner represents the Company’s ownership results for the hotel, sold in December 2018.

(4) Pro Forma represents the Company’s ownership results for the 21 Hotel Comparable Portfolio.

CORPORATE FINANCIAL INFORMATION							Page 18

Supplemental Financial Information
February 12, 2019

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

	Year Ended December 31, 2018
				Disposition:		Disposition:		Disposition:		Disposition:		Acquisition:		Acquisition:		Issuance:
				Marriott Philadelphia										JW Marriott
(In thousands)		Actual (1)		& Marriott Quincy (2)		Hyatt Regency Newport Beach (3)		Houston Hotels (4)		Marriott Tysons Corner (5)		Renaissance DC Space Rights (6)		New Orleans Land (7)		Common Stock (8)		Pro Forma (9)
Net income	$	259,059	$	(14,716)	$	(56,447)	$	332	$	(53,446)	$	546	$	168	$	—	$	135,496
Operations held for investment:
Depreciation and amortization		146,449		—		(1,773)		(1,522)		(2,442)		—		—		—		140,712
Amortization of lease intangibles		93		—		—		—		—		—		163		—		256
Interest expense		47,690		—		—		—		—		—		—		—		47,690
Income tax provision, net		1,767		—		—		—		—		—		—		—		1,767
Gain on sale of assets, net		(116,916)		15,659		53,128		336		47,838		—		—		—		45
Impairment loss		1,394		—		—		(1,394)		—		—		—		—		—
EBITDAre		339,536		943		(5,092)		(2,248)		(8,050)		546		331		—		325,966
Operations held for investment:
Amortization of deferred stock compensation		9,007		—		—		—		—		—		—		—		9,007
Amortization of favorable and unfavorable contracts, net		(2)		—		—		—		—		—		—		—		(2)
Noncash ground rent		(1,147)		—		—		—		—		—		—		—		(1,147)
Capital lease obligation interest - cash ground rent		(2,361)		—		—		—		—		—		—		—		(2,361)
Loss on extinguishment of debt		835		—		—		—		—		—		—		—		835
Hurricane-related insurance proceeds net of uninsured losses		(990)		—		—		(4)		—		—		—		—		(994)
Prior year property tax adjustments, net		(203)		—		—		—		—		—		—		—		(203)
Property-level restructuring, severance and management transition costs		29		—		—		—		—		—		—		—		29
Noncontrolling interest:
Income from consolidated joint venture attributable to noncontrolling interest		(8,614)		—		—		—		—		—		—		—		(8,614)
Depreciation and amortization		(2,556)		—		—		—		—		—		—		—		(2,556)
Interest expense		(1,982)		—		—		—		—		—		—		—		(1,982)
Noncash ground rent		290		—		—		—		—		—		—		—		290
		(7,694)		—		—		(4)		—		—		—		—		(7,698)
Adjusted EBITDAre, excluding noncontrolling interest	$	331,842	$	943	$	(5,092)	$	(2,252)	$	(8,050)	$	546	$	331	$	—	$	318,268

*Footnotes on page 21

CORPORATE FINANCIAL INFORMATION							Page 19

Supplemental Financial Information
February 12, 2019

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

	Year Ended December 31, 2018
				Disposition:		Disposition:		Disposition:		Disposition:		Acquisition:		Acquisition:		Issuance:
				Marriott Philadelphia										JW Marriott
(In thousands, except per share amounts)		Actual (1)		& Marriott Quincy (2)		Hyatt Regency Newport Beach (3)		Houston Hotels (4)		Marriott Tysons Corner (5)		Renaissance DC Space Rights (6)		New Orleans Land (7)		Common Stock (8)		Pro Forma (9)
Net income	$	259,059	$	(14,716)	$	(56,447)	$	332	$	(53,446)	$	546	$	168	$	—	$	135,496
Preferred stock dividends		(12,830)		—		—		—		—		—		—		—		(12,830)
Operations held for investment:
Real estate depreciation and amortization		145,827		—		(1,773)		(1,522)		(2,442)		—		—		—		140,090
Amortization of lease intangibles		93		—		—		—		—		—		163		—		256
Gain on sale of assets, net		(116,916)		15,659		53,128		336		47,838		—		—		—		45
Impairment loss		1,394		—		—		(1,394)		—		—		—		—		—
Noncontrolling interest:
Income from consolidated joint venture attributable to noncontrolling interest		(8,614)		—		—		—		—		—		—		—		(8,614)
Real estate depreciation and amortization		(2,556)		—		—		—		—		—		—		—		(2,556)
FFO attributable to common stockholders		265,457		943		(5,092)		(2,248)		(8,050)		546		331		—		251,887
Operations held for investment:
Amortization of favorable and unfavorable contracts, net		(2)		—		—		—		—		—		—		—		(2)
Noncash ground rent		(1,147)		—		—		—		—		—		—		—		(1,147)
Noncash interest on derivatives and capital lease obligations, net		(1,190)		—		—		—		—		—		—		—		(1,190)
Loss on extinguishment of debt		835		—		—		—		—		—		—		—		835
Hurricane-related insurance proceeds net of uninsured losses		(990)		—		—		(4)		—		—		—		—		(994)
Prior year property tax adjustments, net		(203)		—		—		—		—		—		—		—		(203)
Property-level restructuring, severance and management transition costs		29		—		—		—		—		—		—		—		29
Noncash income tax provision, net		1,132		—		—		—		—		—		—		—		1,132
Noncontrolling interest:
Noncash ground rent		290		—		—		—		—		—		—		—		290
Noncash interest on derivative, net		(1)		—		—		—		—		—		—		—		(1)
		(1,247)		—		—		—		—		—		—		—		(1,251)
Adjusted FFO attributable to common stockholders	$	264,210	$	943	$	(5,092)	$	(2,252)	$	(8,050)	$	546	$	331	$	—	$	250,636
FFO attributable to common stockholders per diluted share	$	1.17															$	1.11
Adjusted FFO attributable to common stockholders per diluted share	$	1.17															$	1.10
Basic weighted average shares outstanding		225,924														1,092		227,016
Shares associated with unvested restricted stock awards		377														—		377
Diluted weighted average shares outstanding		226,301														1,092		227,393

*Footnotes on page 21

CORPORATE FINANCIAL INFORMATION							Page 20

Supplemental Financial Information
February 12, 2019

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

FFO and Adjusted FFO Attributable to Common Stockholders
FY 2018 Footnotes

(1) Actual represents the Company's ownership results for all 21 hotels owned by the Company as of December 31, 2018, as well as results prior to their dispositions for the Marriott Philadelphia and Marriott Quincy in January 2018, Hyatt Regency Newport Beach in July 2018, the Houston hotels in October 2018, and the Marriott Tysons Corner in December 2018.

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

(3) Disposition: Hyatt Regency Newport Beach represents the Company's ownership results for the hotel, sold in July 2018.

(4) Disposition: Houston Hotels represents the Company's ownership results for the hotels, sold in October 2018.

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

(6) Acquisition: Renaissance DC Space Rights represents the reduction in lease space rental expense payable to a third party due to the Company's acquisition of the exclusive perpetual rights to use certain portions of the building in May 2018.

(7) Acquisition: JW Marriott New Orleans Land represents the reduction in ground lease expense payable to a third party due to the Company's acquisition of the land underlying the hotel in July 2018.

(8) Issuance: Common Stock represents the 2,590,854 shares issued in connection with the Company's ATM program in the second quarter of 2018.

(9) Pro Forma represents the Company's ownership results for the 21 Hotel Comparable Portfolio, as well as the common stock issuance in 2018 and the reduction of rental expense due to the acquisitions of previously leased building space and land in May 2018 and July 2018, respectively.

CORPORATE FINANCIAL INFORMATION							Page 21

Supplemental Financial Information
February 12, 2019

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:		Disposition:		Disposition:		Acquisition:		Acquisition:		Acquisition:		Issuance:
							Marriott Philadelphia								Oceans Edge				JW Marriott
(In thousands)	Actual (1)		Fairmont Newport Beach (2)		Marriott Park City (3)		& Marriott Quincy (4)		Hyatt Regency Newport Beach (5)		Houston Hotels (6)		Marriott Tysons Corner (7)		Resort & Marina (8)		Renaissance DC Space Rights (9)		New Orleans Land (10)		Common Stock (11)		Pro Forma (12)
Net income	$	153,004	$	(45,304)	$	(2,636)	$	(6,385)	$	(6,604)	$	39,372	$	(4,733)	$	1,393	$	1,291	$	621	$	—	$	130,019
Operations held for investment:
Depreciation and amortization		158,634		—		(699)		(7,195)		(3,576)		(4,692)		(2,994)		1,463		—		—		—		140,941
Amortization of lease intangibles		251		—		—		—		—		—		—		—		—		4		—		255
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)		(13,580)		(10,180)		(5,373)		(7,727)		2,856		1,291		625		—		314,933
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		—		—		—		—		(848)		—		—		—		—		—		842
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)		—		—		—		—		(848)		—		—		—		—		—		(12,394)
Adjusted EBITDAre, excluding noncontrolling interest	$	338,640	$	(1,019)	$	(2,146)	$	(13,580)	$	(10,180)	$	(6,221)	$	(7,727)	$	2,856	$	1,291	$	625	$	—	$	302,539

*Footnotes on page 24

CORPORATE FINANCIAL INFORMATION							Page 22

Supplemental Financial Information
February 12, 2019

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:		Disposition:		Disposition:		Acquisition:		Acquisition:		Acquisition:		Issuance:
			Fairmont		Marriott		Marriott Philadelphia  &		Hyatt Regency		Houston		Marriott		Oceans Edge Resort &		Renaissance DC		JW Marriott New Orleans		Common		Pro
(In thousands, except per share amounts)	Actual (1)		Newport Beach (2)		Park City (3)		Marriott Quincy (4)		Newport Beach (5)		Hotels (6)		Tysons Corner (7)		Marina (8)		Space Rights (9)		Land (10)		Stock (11)		Forma (12)
Net income	$	153,004	$	(45,304)	$	(2,636)	$	(6,385)	$	(6,604)	$	39,372	$	(4,733)	$	1,393	$	1,291	$	621	$	—	$	130,019
Preferred stock dividends		(12,830)		—		—		—		—		—		—		—		—		—		—		(12,830)
Operations held for investment:
Real estate depreciation and amortization		158,177		—		(699)		(7,195)		(3,576)		(4,692)		(2,994)		1,463		—		—		—		140,484
Amortization of lease intangibles		251		—		—		—		—		—		—		—		—		4		—		255
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)		(13,580)		(10,180)		(5,373)		(7,727)		2,856		1,291		625		—		240,260
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		—		—		—		—		(848)		—		—		—		—		—		842
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)		—		—		—		—		(848)		—		—		—		—		—		(5,383)
Adjusted FFO attributable to common stockholders	$	270,978	$	(1,019)	$	(2,146)	$	(13,580)	$	(10,180)	$	(6,221)	$	(7,727)	$	2,856	$	1,291	$	625	$	—	$	234,877
FFO attributable to common stockholders per diluted share	$	1.24																					$	1.06
Adjusted FFO attributable to common stockholders per diluted share	$	1.22																					$	1.03
Basic weighted average shares outstanding		221,898																				4,793		226,691
Shares associated with unvested restricted stock awards		391																				—		391
Diluted weighted average shares outstanding		222,289																				4,793		227,082

*Footnotes on page 24

CORPORATE FINANCIAL INFORMATION							Page 23

Supplemental Financial Information
February 12, 2019

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 & Marriott Quincy represents the Company's ownership results for the hotels, sold in January 2018.

(5) Disposition: Hyatt Regency Newport Beach represents the Company's ownership results for the hotel, sold in July 2018.

(6) Disposition: Houston Hotels represents the Company's ownership results for the hotels, sold in October 2018.

(7) Disposition: Marriott Tysons Corner represents the Company's ownership results for the hotel, sold in December 2018.

(8) 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.

(9) Acquisition: Renaissance DC Space Rights represents the reduction in lease space rental expense payable to a third party due to the Company's acquisition of the exclusive perpetual rights to use certain portions of the building in May 2018.

(10) Acquisition: JW Marriott New Orleans Land represents the reduction in ground lease expense payable to a third party due to the Company's acquisition of the land underlying the hotel in July 2018.

(11) Issuance: Common Stock represents the 4,685,023 shares, the 191,832 shares and the 2,590,854 shares issued in connection with the Company's ATM program in the second quarter of 2017, July 2017 and second quarter of 2018, respectively. The 191,832 shares were sold at the end of June 2017, but due to customary settlement periods, the shares were not delivered until July 2017.

(12) Pro Forma represents the Company's ownership results and prior ownership results for the 21 Hotel Comparable Portfolio, as well as the common stock issuances in 2017 and 2018, along with the reduction of rental expense due to the acquisitions of previously leased building space and land in May 2018 and July 2018, respectively.

CORPORATE FINANCIAL INFORMATION							Page 24

Supplemental Financial Information
February 12, 2019

EARNINGS GUIDANCE

EARNINGS GUIDANCE							Page 25

Supplemental Financial Information
February 12, 2019

Earnings Guidance for Q1 and FY 2019

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 2019.

The Company’s 2019 guidance does not include any residual impact from the recent government shutdown or any additional impact from any future government shutdowns, which could likely have a prolonged negative impact on its business. 

For the first quarter of 2019, the Company expects:

Metric	Quarter Ended March 31, 2019 Guidance (1)
Net Income ($ millions)	$10 to $14
21 Hotel Comparable Portfolio RevPAR Growth	+ 2.5% to + 4.5%
Adjusted EBITDAre, excluding noncontrolling interest ($ millions)	$59  to  $62
Adjusted FFO Attributable to Common Stockholders ($ millions)	$42  to  $45
Adjusted FFO Attributable to Common Stockholders per Diluted Share	$0.18  to  $0.20
Diluted Weighted Average Shares Outstanding	227,700,000

For the full year of 2019, the Company expects:

Metric	Full Year 2019 Guidance (1)
Net Income ($ millions)	$109  to  $134
21 Hotel Comparable Portfolio RevPAR Growth	0.0% to + 3.0%
Adjusted EBITDAre, excluding noncontrolling interest ($ millions)	$300  to  $324
Adjusted FFO Attributable to Common Stockholders ($ millions)	$229  to  $254
Adjusted FFO Attributable to Common Stockholders per Diluted Share	$1.01  to  $1.11
Diluted Weighted Average Shares Outstanding	228,000,000

(1) See page 28 for detailed reconciliations of Net Income to non-GAAP financial measures.

EARNINGS GUIDANCE							Page 26

Supplemental Financial Information
February 12, 2019

Earnings Guidance for Q1 and FY 2019 (cont.)

First quarter and full year 2019 guidance are based in part on the following assumptions:

· Full year revenue displacement of $4.0 million to $5.0 million, related to planned 2019 capital investment projects.

· Full year Adjusted EBITDAre, excluding noncontrolling interest displacement of approximately $3.0 million to $4.0 million, related to planned 2019 capital investment projects.

· Full year 21 Hotel Comparable Portfolio Adjusted EBITDAre Margin is expected to decline 25 basis points to 75 basis points.

· Full year corporate overhead expense (excluding deferred stock amortization) of approximately $23 million.

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

· Full year interest expense of approximately $51 million, including approximately $3 million in amortization of deferred financing costs and approximately $3 million of capital lease obligation interest. Full year interest expense does not include any noncash gain or loss 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 27

Supplemental Financial Information
February 12, 2019

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

Adjusted FFO Attributable to Common Stockholders
Q1 and FY 2019

Reconciliation of Net Income to Adjusted EBITDAre, Excluding Noncontrolling Interest

		Quarter Ended				Year Ended
		March 31, 2019				December 31, 2019
(In thousands, except per share data)		Low		High		Low		High
Net income	$	10,200	$	13,800	$	109,000	$	134,200
Depreciation and amortization		36,200		36,000		144,800		144,200
Amortization of lease intangibles		100		100		300		300
Interest expense		12,900		12,700		51,200		50,800
Income tax provision		300		300		1,300		1,300
Noncontrolling interest		(1,900)		(2,100)		(12,300)		(12,500)
Amortization of deferred stock compensation		2,100		2,100		9,300		9,300
Noncash ground rent		(300)		(300)		(1,200)		(1,200)
Capital lease obligation interest - cash ground rent		(600)		(600)		(2,400)		(2,400)
Adjusted EBITDAre, excluding noncontrolling interest	$	59,000	$	62,000	$	300,000	$	324,000

Reconciliation of Net Income to Adjusted FFO Attributable to Common Stockholders

Net income	$	10,200	$	13,800	$	109,000	$	134,200
Preferred stock dividends		(3,200)		(3,200)		(12,800)		(12,800)
Real estate depreciation and amortization		36,000		35,800		143,800		143,200
Amortization of lease intangibles		100		100		300		300
Noncontrolling interest		(1,300)		(1,500)		(10,100)		(10,300)
Noncash ground rent		(300)		(300)		(1,200)		(1,200)
Noncash interest on capital lease obligations		100		100		200		200
Adjusted FFO attributable to common stockholders	$	41,600	$	44,800	$	229,200	$	253,600
Adjusted FFO attributable to common stockholders per diluted share	$	0.18	$	0.20	$	1.01	$	1.11
Diluted weighted average shares outstanding		227,700		227,700		228,000		228,000

EARNINGS GUIDANCE							Page 28

Supplemental Financial Information
February 12, 2019

CAPITALIZATION

CAPITALIZATION							Page 29

Supplemental Financial Information
February 12, 2019

Comparative Capitalization
Q4 2018 – Q4 2017

		December 31,			September 30,			June 30,			March 31,			December 31,
(In thousands, except per share data)		2018			2018			2018			2018			2017
Common Share Price & Dividends
At the end of the quarter	$	13.01		$	16.36		$	16.62		$	15.22		$	16.53
High during quarter ended	$	16.13		$	16.98		$	17.52		$	17.26		$	17.44
Low during quarter ended	$	12.91		$	15.79		$	14.42		$	14.33		$	15.90
Common dividends per share	$	0.54		$	0.05		$	0.05		$	0.05		$	0.58
Common Shares & Units
Common shares outstanding		228,246			228,247			228,254			225,615			225,322
Units outstanding		—			—			—			—			—
Total common shares and units outstanding		228,246			228,247			228,254			225,615			225,322
Capitalization
Market value of common equity	$	2,969,484		$	3,734,122		$	3,793,586		$	3,433,856		$	3,724,567
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		982,828			984,916			986,638			988,510			990,402
Consolidated total capitalization		4,142,312			4,909,038			4,970,224			4,612,366			4,904,969
Noncontrolling interest in consolidated debt		(55,000)			(55,000)			(55,000)			(55,000)			(55,000)
Pro rata total capitalization	$	4,087,312		$	4,854,038		$	4,915,224		$	4,557,366		$	4,849,969
Consolidated debt to total capitalization		23.7	%		20.1	%		19.9	%		21.4	%		20.2	%
Pro rata debt to pro rata total capitalization		22.7	%		19.2	%		19.0	%		20.5	%		19.3	%
Consolidated debt and preferred equity to total capitalization		28.3	%		23.9	%		23.7	%		25.6	%		24.1	%
Pro rata debt and preferred equity to pro rata total capitalization		27.3	%		23.1	%		22.8	%		24.7	%		23.2	%

CAPITALIZATION							Page 30

Supplemental Financial Information
February 12, 2019

Consolidated Debt Summary Schedule

(In thousands)		Interest Rate /	Maturity		December 31, 2018			Balance At
Debt	Collateral	Spread	Date		Balance			Maturity
Fixed Rate Debt
Secured Mortgage Debt	Hilton Times Square	4.97%	11/01/2020	$	79,656		$	76,145
Secured Mortgage Debt	Renaissance Washington DC	5.95%	05/01/2021		114,034			106,855
Term Loan Facility	Unsecured	2.94%	09/03/2022		85,000			85,000
Term Loan Facility	Unsecured	3.20%	01/31/2023		100,000			100,000
Secured Mortgage Debt	JW Marriott New Orleans	4.15%	12/11/2024		83,649			72,071
Secured Mortgage Debt	Embassy Suites La Jolla	4.12%	01/06/2025		60,489			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					762,828			732,058
Secured Mortgage Debt	Hilton San Diego Bayfront	L + 1.05%	12/09/2023   (1)		220,000			220,000
Credit Facility	Unsecured	L + 1.40% - 2.25%	04/14/2023		—			—
Total Variable Rate Debt					220,000			220,000
TOTAL CONSOLIDATED DEBT				$	982,828		$	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					77.6	%
% Floating Rate Debt					22.4	%
Average Interest Rate (2)					4.19	%
Weighted Average Maturity of Debt (1)					5.1 years

(1) The Company intends to exercise all three of its available one-year options to extend the maturity date of the $220.0 million loan secured by the Hilton San Diego Bayfront from December 2020 to December 2023.  By extending this loan, the Company's weighted average maturity of debt increases from 4.4 years to 5.1 years.

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

CAPITALIZATION							Page 31

Supplemental Financial Information
February 12, 2019

Consolidated Amortization and Debt Maturity Schedule

As of December 31, 2018

(1) The Company intends to exercise all three of its available one-year options to extend the maturity date of the $220.0 million loan secured by the Hilton San Diego Bayfront from December 2020 to December 2023.

(2) Percent of Current Total Capitalization is calculated by dividing the sum of scheduled principal amortization and maturity payments by the December 31, 2018 consolidated total capitalization as presented on page 30.

CAPITALIZATION							Page 32

Supplemental Financial Information
February 12, 2019

PROPERTY-LEVEL DATA

PROPERTY-LEVEL DATA							Page 33

Supplemental Financial Information
February 12, 2019

Hotel Information as of February 12, 2019

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	11.04%	75%	Leasehold	2071	2011
2	Boston Park Plaza	Massachusetts	Independent	1,060	9.83%	100%	Fee Simple		2013
3	Renaissance Washington DC	Washington DC	Marriott	807	7.49%	100%	Fee Simple		2005
4	Hyatt Regency San Francisco	California	Hyatt	804	7.46%	100%	Fee Simple		2013
5	Renaissance Orlando at SeaWorld®	Florida	Marriott	781	7.24%	100%	Fee Simple		2005
6	Renaissance Harborplace	Maryland	Marriott	622	5.77%	100%	Fee Simple		2005
7	Wailea Beach Resort	Hawaii	Marriott	547	5.07%	100%	Fee Simple		2014
8	Renaissance Los Angeles Airport	California	Marriott	502	4.66%	100%	Fee Simple		2007
9	JW Marriott New Orleans (2)	Louisiana	Marriott	501	4.65%	100%	Fee Simple		2011
10	Hilton Times Square	New York	Hilton	478	4.43%	100%	Leasehold	2091	2006
11	Hyatt Centric Chicago Magnificent Mile	Illinois	Hyatt	419	3.89%	100%	Leasehold	2097	2012
12	Marriott Boston Long Wharf	Massachusetts	Marriott	415	3.85%	100%	Fee Simple		2007
13	Renaissance Long Beach	California	Marriott	374	3.47%	100%	Fee Simple		2005
14	Embassy Suites Chicago	Illinois	Hilton	368	3.41%	100%	Fee Simple		2002
15	Hilton Garden Inn Chicago Downtown/Magnificent Mile	Illinois	Hilton	361	3.35%	100%	Fee Simple		2012
16	Renaissance Westchester	New York	Marriott	348	3.23%	100%	Fee Simple		2010
17	Embassy Suites La Jolla	California	Hilton	340	3.15%	100%	Fee Simple		2006
18	Hilton New Orleans St. Charles	Louisiana	Hilton	252	2.34%	100%	Fee Simple		2013
19	Marriott Portland	Oregon	Marriott	249	2.31%	100%	Fee Simple		2000
20	Courtyard by Marriott Los Angeles (3)	California	Marriott	187	1.73%	100%	Leasehold	2096	1999
21	Oceans Edge Resort & Marina	Florida	Independent	175	1.62%	100%	Fee Simple		2017
	Total 21 Hotel Comparable Portfolio			10,780	100%

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

(2) Hotel is subject to a municipal air rights lease that matures in 2044 and applies only to certain balcony space that 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 34

Supplemental Financial Information
February 12, 2019

PROPERTY-LEVEL OPERATING STATISTICS

PROPERTY-LEVEL OPERATING STATISTICS							Page 35

Supplemental Financial Information
February 12, 2019

Property-Level Operating Statistics

Q4 2018/2017

	Hotels sorted by number of rooms	ADR					Occupancy			RevPAR
		For the Three Months Ended December 31,					For the Three Months Ended December 31,			For the Three Months Ended December 31,
		2018		2017		Variance	2018	2017	Variance	2018		2017		Variance
1	Hilton San Diego Bayfront	$	234.61	$	208.01	12.8%	82.7%	80.3%	3.0%	$	194.02	$	167.03	16.2%
2	Boston Park Plaza	$	216.27	$	208.83	3.6%	88.0%	85.0%	3.5%	$	190.32	$	177.51	7.2%
3	Renaissance Washington DC	$	238.26	$	232.17	2.6%	70.4%	77.5%	-9.2%	$	167.74	$	179.93	-6.8%
4	Hyatt Regency San Francisco	$	313.57	$	283.14	10.7%	84.9%	85.1%	-0.2%	$	266.22	$	240.95	10.5%
5	Renaissance Orlando at SeaWorld ®	$	155.38	$	145.23	7.0%	74.7%	77.3%	-3.4%	$	116.07	$	112.26	3.4%
6	Renaissance Harborplace	$	161.75	$	165.69	-2.4%	59.7%	59.9%	-0.3%	$	96.56	$	99.25	-2.7%
7	Wailea Beach Resort	$	435.08	$	426.01	2.1%	85.1%	79.9%	6.5%	$	370.25	$	340.38	8.8%
8	Renaissance Los Angeles Airport	$	140.25	$	150.14	-6.6%	91.6%	82.1%	11.6%	$	128.47	$	123.26	4.2%
9	JW Marriott New Orleans	$	200.67	$	204.38	-1.8%	85.9%	80.5%	6.7%	$	172.38	$	164.53	4.8%
10	Hilton Times Square	$	349.94	$	337.96	3.5%	99.4%	99.0%	0.4%	$	347.84	$	334.58	4.0%
11	Hyatt Centric Magnificent Mile	$	198.23	$	197.17	0.5%	80.7%	81.9%	-1.5%	$	159.97	$	161.48	-0.9%
12	Marriott Boston Long Wharf	$	322.30	$	309.60	4.1%	83.5%	82.4%	1.3%	$	269.12	$	255.11	5.5%
13	Renaissance Long Beach	$	177.41	$	173.86	2.0%	80.6%	83.6%	-3.6%	$	142.99	$	145.35	-1.6%
14	Embassy Suites Chicago	$	190.86	$	188.34	1.3%	88.5%	89.6%	-1.2%	$	168.91	$	168.75	0.1%
15	Hilton Garden Inn Chicago Downtown/Magnificent Mile	$	169.88	$	168.55	0.8%	84.3%	85.3%	-1.2%	$	143.21	$	143.77	-0.4%
16	Renaissance Westchester	$	158.20	$	153.69	2.9%	74.8%	71.6%	4.5%	$	118.33	$	110.04	7.5%
17	Embassy Suites La Jolla	$	189.71	$	171.21	10.8%	86.9%	84.6%	2.7%	$	164.86	$	144.84	13.8%
18	Hilton New Orleans St. Charles	$	173.87	$	178.41	-2.5%	76.1%	81.0%	-6.0%	$	132.32	$	144.51	-8.4%
19	Marriott Portland	$	169.26	$	171.58	-1.4%	82.0%	83.1%	-1.3%	$	138.79	$	142.58	-2.7%
20	Courtyard by Marriott Los Angeles	$	151.75	$	156.30	-2.9%	92.8%	94.7%	-2.0%	$	140.82	$	148.02	-4.9%
21	Oceans Edge Resort & Marina (1)	$	221.23	$	237.92	-7.0%	93.5%	61.6%	51.8%	$	206.85	$	146.56	41.1%
	21 Hotel Comparable Portfolio (2)	$	228.74	$	219.80	4.1%	82.2%	81.0%	1.5%	$	188.02	$	178.04	5.6%

(1) Operating statistics for the fourth quarter of 2017 are impacted by Hurricane Irma at the Oceans Edge Resort & Marina.

(2) 21 Hotel Comparable Portfolio includes all hotels owned by the Company as of December 31, 2018.

PROPERTY-LEVEL OPERATING STATISTICS							Page 36

Supplemental Financial Information
February 12, 2019

Property-Level Operating Statistics

FY 2018/2017

	Hotels sorted by number of rooms	ADR					Occupancy			RevPAR
		For the Year Ended December 31,					For the Year Ended December 31,			For the Year Ended December 31,
		2018		2017		Variance	2018	2017	Variance	2018		2017		Variance
1	Hilton San Diego Bayfront	$	247.06	$	235.03	5.1%	86.1%	85.3%	0.9%	$	212.72	$	200.48	6.1%
2	Boston Park Plaza	$	216.42	$	217.16	-0.3%	88.1%	85.0%	3.6%	$	190.67	$	184.59	3.3%
3	Renaissance Washington DC	$	231.60	$	234.72	-1.3%	77.4%	82.3%	-6.0%	$	179.26	$	193.17	-7.2%
4	Hyatt Regency San Francisco (1)	$	310.17	$	296.58	4.6%	88.3%	88.1%	0.2%	$	273.88	$	261.29	4.8%
5	Renaissance Orlando at SeaWorld ®	$	161.01	$	158.55	1.6%	78.1%	78.8%	-0.9%	$	125.75	$	124.94	0.6%
6	Renaissance Harborplace	$	164.28	$	166.89	-1.6%	68.9%	73.9%	-6.8%	$	113.19	$	123.33	-8.2%
7	Wailea Beach Resort	$	415.11	$	365.73	13.5%	89.1%	82.7%	7.7%	$	369.86	$	302.46	22.3%
8	Renaissance Los Angeles Airport (1)	$	150.50	$	158.25	-4.9%	88.8%	89.9%	-1.2%	$	133.64	$	142.27	-6.1%
9	JW Marriott New Orleans  (1)	$	200.47	$	194.80	2.9%	74.3%	82.1%	-9.5%	$	148.95	$	159.93	-6.9%
10	Hilton Times Square	$	293.39	$	284.88	3.0%	99.3%	99.2%	0.1%	$	291.34	$	282.60	3.1%
11	Hyatt Chicago Magnificent Mile	$	200.38	$	194.55	3.0%	83.7%	80.4%	4.1%	$	167.72	$	156.42	7.2%
12	Marriott Boston Long Wharf (1)	$	335.93	$	317.52	5.8%	74.0%	87.3%	-15.2%	$	248.59	$	277.19	-10.3%
13	Renaissance Long Beach	$	184.33	$	184.25	0.0%	83.1%	83.5%	-0.5%	$	153.18	$	153.85	-0.4%
14	Embassy Suites Chicago	$	203.02	$	196.13	3.5%	89.3%	88.2%	1.2%	$	181.30	$	172.99	4.8%
15	Hilton Garden Inn Chicago Downtown/Magnificent Mile	$	180.68	$	176.25	2.5%	86.2%	83.1%	3.7%	$	155.75	$	146.46	6.3%
16	Renaissance Westchester	$	157.43	$	156.09	0.9%	74.9%	72.3%	3.6%	$	117.92	$	112.85	4.5%
17	Embassy Suites La Jolla	$	199.85	$	190.16	5.1%	88.8%	85.7%	3.6%	$	177.47	$	162.97	8.9%
18	Hilton New Orleans St. Charles	$	169.98	$	166.11	2.3%	78.8%	83.5%	-5.6%	$	133.94	$	138.70	-3.4%
19	Marriott Portland	$	184.26	$	187.28	-1.6%	83.9%	85.9%	-2.3%	$	154.59	$	160.87	-3.9%
20	Courtyard by Marriott Los Angeles	$	163.17	$	172.92	-5.6%	94.8%	95.6%	-0.8%	$	154.69	$	165.31	-6.4%
21	Oceans Edge Resort & Marina (1)	$	233.78	$	227.68	2.7%	93.4%	74.6%	25.2%	$	218.35	$	169.85	28.6%
	21 Hotel Comparable Portfolio (2)	$	228.81	$	221.87	3.1%	83.8%	84.1%	-0.4%	$	191.74	$	186.59	2.8%

(1) Operating statistics for 2018 are impacted by room renovations at the Hyatt Regency San Francisco, JW Marriott New Orleans, Marriott Boston Long Wharf and Renaissance Los Angeles Airport. Operating statistics for 2017 are impacted by Hurricane Irma at the Oceans Edge Resort & Marina.

(2) 21 Hotel Comparable Portfolio includes all hotels owned by the Company as of December 31, 2018. The 21 Hotel Comparable Portfolio 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 37

Supplemental Financial Information
February 12, 2019

OPERATING STATISTICS BY BRAND & GEOGRAPHY

OPERATING STATISTICS BY BRAND & GEOGRAPHY							Page 38

Supplemental Financial Information
February 12, 2019

Operating Statistics by Brand
Q4 and FY 2018/2017

		For the Three Months Ended December 31,
		2018					2017
	# of Hotels	Occ	ADR		RevPAR		Occ	ADR		RevPAR		RevPAR Change
Marriott (1)	11	78.1%	$	217.74	$	170.05	77.7%	$	214.07	$	166.33	2.2%
Hilton (2)	6	86.2%	$	233.04	$	200.88	85.6%	$	218.26	$	186.83	7.5%
Hyatt (3)	2	83.5%	$	275.38	$	229.94	84.0%	$	254.42	$	213.71	7.6%
Other (4)	2	88.7%	$	217.01	$	192.49	81.7%	$	211.94	$	173.15	11.2%
21 Hotel Comparable Portfolio (5)	21	82.2%	$	228.74	$	188.02	81.0%	$	219.80	$	178.04	5.6%
		For the Year Ended December 31,
		2018					2017
	# of Hotels	Occ	ADR		RevPAR		Occ	ADR		RevPAR		RevPAR Change
Marriott (1)	11	79.4%	$	218.77	$	173.70	82.0%	$	212.60	$	174.33	-0.4%
Hilton (2)	6	88.3%	$	230.88	$	203.87	87.5%	$	221.96	$	194.22	5.0%
Hyatt (3)	2	86.7%	$	273.88	$	237.45	85.5%	$	263.70	$	225.46	5.3%
Other (4)	2	88.8%	$	219.01	$	194.48	83.6%	$	218.46	$	182.63	6.5%
21 Hotel Comparable Portfolio (5)	21	83.8%	$	228.81	$	191.74	84.1%	$	221.87	$	186.59	2.8%

(1) Marriott excludes the Marriott Tysons Corner, sold in December 2018, the Marriott Houston, sold in October 2018, the Marriott Philadelphia and Marriott Quincy, both of which were sold in January 2018, and the Marriott Park City, sold in June 2017.

(2) Hilton excludes the Hilton North Houston, sold in October 2018.

(3) Hyatt excludes the Hyatt Regency Newport Beach, sold in July 2018.

(4) Other excludes the Fairmont Newport Beach sold in February 2017. 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.

(5) 21 Hotel Comparable Portfolio includes all hotels owned by the Company as of December 31, 2018.

OPERATING STATISTICS BY BRAND & GEOGRAPHY							Page 39

Supplemental Financial Information
February 12, 2019

21 Hotel Comparable Portfolio Property-Level FY 2018 Adjusted EBITDAre Contribution by Brand

OPERATING STATISTICS BY BRAND & GEOGRAPHY							Page 40

Supplemental Financial Information
February 12, 2019

Operating Statistics by Region
Q4 and FY 2018/2017

		For the Three Months Ended December 31,
		2018					2017
	# of Hotels	Occ		ADR		RevPAR	Occ		ADR		RevPAR	RevPAR Change
California (1)	6	85.3%	$	222.75	$	190.01	83.3%	$	207.00	$	172.43	10.2%
Other West (2)	2	84.2%	$	354.09	$	298.14	80.9%	$	344.25	$	278.50	7.1%
Midwest	3	84.3%	$	186.84	$	157.51	85.5%	$	185.22	$	158.36	-0.5%
East (3)	10	79.5%	$	222.71	$	177.05	78.7%	$	217.44	$	171.13	3.5%
21 Hotel Comparable Portfolio (4)	21	82.2%	$	228.74	$	188.02	81.0%	$	219.80	$	178.04	5.6%
		For the Year Ended December 31,
		2018					2017
	# of Hotels	Occ		ADR		RevPAR	Occ		ADR		RevPAR	RevPAR Change
California (1)	6	87.4%	$	231.30	$	202.16	87.1%	$	224.54	$	195.57	3.4%
Other West (2)	2	87.4%	$	345.86	$	302.28	83.7%	$	308.41	$	258.14	17.1%
Midwest	3	86.3%	$	195.06	$	168.34	83.7%	$	189.38	$	158.51	6.2%
East (3)	10	80.4%	$	216.14	$	173.78	82.4%	$	214.19	$	176.49	-1.5%
21 Hotel Comparable Portfolio (4)	21	83.8%	$	228.81	$	191.74	84.1%	$	221.87	$	186.59	2.8%

(1) California excludes the Hyatt Regency Newport Beach and the Fairmont Newport Beach, sold in July 2018 and February 2017, respectively.

(2) Other West excludes the Houston hotels, sold in October 2018, and the Marriott Park City, sold in June 2017.

(3) East excludes the Marriott Tysons Corner, sold in December 2018, and the Marriott Philadelphia and Marriott Quincy, both of which were sold in January 2018. 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 hotel’s July 2017 acquisition date. The Company performed a limited review of the information as part of its analysis of the acquisition. 

(4) 21 Hotel Comparable Portfolio includes all hotels owned by the Company as of December 31, 2018.

OPERATING STATISTICS BY BRAND & GEOGRAPHY							Page 41

Supplemental Financial Information
February 12, 2019

PROPERTY-LEVEL ADJUSTED EBITDAre  &

ADJUSTED EBITDAre MARGINS

PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS							Page 42

Supplemental Financial Information
February 12, 2019

Property-Level Adjusted EBITDAre
Q4 and FY 2018/2017

	Hotels sorted by number of rooms		For the Three Months Ended December 31,					For the Year Ended December 31,
	(In thousands)		2018		2017			2018		2017
			Hotel Adjusted EBITDAre (2)		Hotel Adjusted EBITDAre (2)	% Change		Hotel Adjusted EBITDAre (2)		Hotel Adjusted EBITDAre (2)	% Change
1	Hilton San Diego Bayfront (1)	$	10,135	$	9,720	4%	$	51,417	$	48,707	6%
2	Boston Park Plaza		9,408		7,716	22%		31,373		29,866	5%
3	Renaissance Washington DC (3)		5,328		5,875	-9%		24,100		27,056	-11%
4	Hyatt Regency San Francisco (3)		7,586		6,131	24%		31,313		28,937	8%
5	Renaissance Orlando at SeaWorld ®		5,995		5,990	0%		27,169		25,453	7%
6	Renaissance Harborplace (3)		2,725		1,880	45%		11,138		12,277	-9%
7	Wailea Beach Resort		10,056		8,981	12%		41,912		30,478	38%
8	Renaissance Los Angeles Airport (3)		2,048		1,525	34%		7,935		8,396	-5%
9	JW Marriott New Orleans (3)		4,576		3,829	20%		13,182		14,949	-12%
10	Hilton Times Square		4,507		4,514	0%		10,685		11,172	-4%
11	Hyatt Centric Chicago Magnificent Mile (3)		1,021		1,839	-44%		6,267		7,794	-20%
12	Marriott Boston Long Wharf (3)		5,785		5,336	8%		18,563		23,767	-22%
13	Renaissance Long Beach (3)		2,107		2,221	-5%		9,162		9,421	-3%
14	Embassy Suites Chicago (3)		1,821		2,177	-16%		8,917		9,857	-10%
15	Hilton Garden Inn Chicago Downtown/Magnificent Mile (3)		1,356		1,557	-13%		6,680		6,678	0%
16	Renaissance Westchester		782		797	-2%		2,695		3,093	-13%
17	Embassy Suites La Jolla		2,417		2,246	8%		10,824		10,228	6%
18	Hilton New Orleans St. Charles		1,156		1,567	-26%		4,878		5,620	-13%
19	Marriott Portland		1,381		1,490	-7%		6,727		7,461	-10%
20	Courtyard by Marriott Los Angeles		794		906	-12%		3,738		4,732	-21%
21	Oceans Edge Resort & Marina		1,264		704	80%		6,815		3,762	81%
	21 Hotel Comparable Portfolio (4)		82,248		77,001	7%		335,490		329,704	2%
	Less: Prior Ownership Results (5)
	Oceans Edge Resort & Marina		—		—	N/A		—		(2,856)	N/A
	Add: Sold Hotels (6)
	Fairmont Newport Beach		—		—	—		—		1,019	-100%
	Marriott Park City		—		—	—		—		2,146	-100%
	Marriott Philadelphia		—		1,071	-100%		(352)		4,740	-107%
	Marriott Quincy		—		2,407	-100%		(591)		8,840	-107%
	Hyatt Regency Newport Beach (3)		—		1,461	-100%		5,092		10,180	-50%
	Hilton North Houston		(82)		1,021	-108%		1,063		3,244	-67%
	Marriott Houston		68		757	-91%		1,164		2,977	-61%
	Marriott Tysons Corner		1,989		1,917	4%		8,018		7,727	4%
	Actual Portfolio (7)	$	84,223	$	85,635	-2%	$	349,884	$	367,721	-5%

*Footnotes on page 44

PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS							Page 43

Supplemental Financial Information
February 12, 2019

Property-Level Adjusted EBITDAre
Q4 and FY 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 47, 48,  50 and 51.

(3) Hotel Adjusted EBITDAre for the fourth quarter of 2018 is impacted by a $0.3 million non-current year property tax credit, net of appeal fees, received at the Renaissance Harborplace. Hotel adjusted EBITDAre for 2018 is also impacted by room renovations at the Hyatt Regency San Francisco, JW Marriott New Orleans, Marriott Boston Long Wharf and Renaissance Los Angeles Airport. In addition, Hotel Adjusted EBITDAre for 2018 is impacted by a total of $0.2 million in non-current year property tax (assessments) credits, net of appeal fees, received at the following hotels: Embassy Suites Chicago $(41,000); Hilton Garden Inn Chicago Downtown/Magnificent Mile $(0.1) million; Hyatt Centric Chicago Magnificent Mile $(15,000); Hyatt Regency Newport Beach $5,000; Renaissance Harborplace $0.3 million; and Renaissance Washington DC $(4,000). Hotel Adjusted EBITDAre for the fourth quarter of 2017 is impacted by a total of $0.3 million in non-current year property tax credits, net of appeal fees, received at the following hotels: Hyatt Centric Chicago Magnificent Mile $0.2 million; Hyatt Regency Newport Beach $7,000; and Renaissance Long Beach $26,000. Hotel Adjusted EBITDAre for 2017 is impacted by a total of $0.8 million in non-current year property tax (assessments) credits, net of appeal fees, received at the following hotels: Embassy Suites Chicago $(0.1) million; Hilton Garden Inn Chicago Downtown/Magnificent Mile $(0.1) million; Hyatt Centric Chicago Magnificent Mile $0.7 million; Hyatt Regency Newport Beach $7,000; Hyatt Regency San Francisco $0.1 million; Renaissance Harborplace $0.1 million; and Renaissance Long Beach $26,000.

(4) 21 Hotel Comparable Portfolio includes all hotels owned by the Company as of December 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 include the Fairmont Newport Beach, sold in February 2017, the Marriott Park City, sold in June 2017, the Marriott Philadelphia and Marriott Quincy, both of which were sold in January 2018, the Hyatt Regency Newport Beach, sold in July 2018, the Houston hotels, sold in October 2018, and the Marriott Tysons Corner, sold in December 2018.

(7) Actual Portfolio for the three months and year ended December 31, 2018 includes all 21 hotels owned by the Company as of December 31, 2018, plus the Sold Hotels as applicable. Actual Portfolio for the three months and year ended December 31, 2017 includes all 27 hotels owned by the Company as of December 31, 2017, plus the Sold Hotels as applicable.

PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS							Page 44

Supplemental Financial Information
February 12, 2019

Property-Level Adjusted EBITDAre Margins
Q4 and FY 2018/2017

	Hotels sorted by number of rooms	For the Three Months Ended December 31,			For the Year Ended December 31,
		2018	2017		2018	2017
		Hotel Adjusted EBITDAre Margin	Hotel Adjusted EBITDAre Margin	Change in bps	Hotel Adjusted EBITDAre Margin	Hotel Adjusted EBITDAre Margin	Change in bps
1	Hilton San Diego Bayfront (1)	28.5%	30.2%	(170) bps	32.7%	33.1%	(40) bps
2	Boston Park Plaza	34.2%	31.1%	310 bps	31.2%	31.1%	10 bps
3	Renaissance Washington DC (2)	26.9%	27.6%	(70) bps	28.8%	31.1%	(230) bps
4	Hyatt Regency San Francisco (2)	25.6%	22.7%	290 bps	26.9%	26.1%	80 bps
5	Renaissance Orlando at SeaWorld ®	33.3%	33.4%	(10) bps	34.5%	34.1%	40 bps
6	Renaissance Harborplace (2)	28.3%	19.9%	840 bps	26.2%	27.1%	(90) bps
7	Wailea Beach Resort	38.9%	38.3%	60 bps	39.5%	34.8%	470 bps
8	Renaissance Los Angeles Airport (2)	26.0%	20.7%	530 bps	24.8%	25.5%	(70) bps
9	JW Marriott New Orleans  (2)	43.2%	38.7%	450 bps	36.7%	38.3%	(160) bps
10	Hilton Times Square	27.7%	28.8%	(110) bps	19.7%	21.2%	(150) bps
11	Hyatt Centric Chicago Magnificent Mile (2)	12.9%	22.2%	(930) bps	18.3%	23.1%	(480) bps
12	Marriott Boston Long Wharf (2)	39.3%	38.6%	70 bps	34.6%	40.2%	(560) bps
13	Renaissance Long Beach (2)	30.2%	31.1%	(90) bps	32.0%	33.0%	(100) bps
14	Embassy Suites Chicago (2)	28.0%	33.5%	(550) bps	32.0%	36.7%	(470) bps
15	Hilton Garden Inn Chicago Downtown/Magnificent Mile (2)	25.9%	29.4%	(350) bps	29.5%	31.3%	(180) bps
16	Renaissance Westchester	13.0%	14.4%	(140) bps	11.8%	14.1%	(230) bps
17	Embassy Suites La Jolla	39.7%	40.9%	(120) bps	42.1%	42.6%	(50) bps
18	Hilton New Orleans St. Charles	33.1%	42.1%	(900) bps	34.9%	39.4%	(450) bps
19	Marriott Portland	37.1%	38.1%	(100) bps	41.2%	43.3%	(210) bps
20	Courtyard by Marriott Los Angeles	27.2%	29.6%	(240) bps	29.8%	35.3%	(550) bps
21	Oceans Edge Resort & Marina (3)	25.2%	21.5%	370 bps	33.2%	26.2%	700 bps
	21 Hotel Comparable Portfolio (4)	30.5%	30.2%	30 bps	30.9%	31.5%	(60) bps
	21 Hotel Comparable Portfolio, excluding prior year property tax adjustments, net (5)	30.4%	30.1%	30 bps	30.9%	31.4%	(50) bps

*Footnotes on page 46

PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS							Page 45

Supplemental Financial Information
February 12, 2019

Property-Level Adjusted EBITDAre Margins
Q4 and FY 2018/2017 Footnotes

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

(2) Hotel Adjusted EBITDAre Margins for the fourth quarter of 2018 are impacted by a $0.3 million non-current year property tax credit, net of appeal fees, received at the Renaissance Harborplace. Hotel adjusted EBITDAre Margins for 2018 are also impacted by room renovations at the Hyatt Regency San Francisco, JW Marriott New Orleans, Marriott Boston Long Wharf and Renaissance Los Angeles Airport. In addition, Hotel Adjusted EBITDAre Margins for 2018 are impacted by a total of $0.2 million in non-current year property tax (assessments) credits, net of appeal fees, received at the following hotels: Embassy Suites Chicago $(41,000); Hilton Garden Inn Chicago Downtown/Magnificent Mile $(0.1) million; Hyatt Centric Chicago Magnificent Mile $(15,000); Renaissance Harborplace $0.3 million; and Renaissance Washington DC $(4,000). Hotel Adjusted EBITDAre Margins for the fourth quarter of 2017 are impacted by a total of $0.3 million in non-current year property tax credits, net of appeal fees, received at the following hotels: Hyatt Centric Chicago Magnificent Mile $0.2 million; and Renaissance Long Beach $26,000. Hotel Adjusted EBITDAre Margins for 2017 are impacted by a total of $0.8 million in non-current year property tax (assessments) credits, net of appeal fees, received at the following hotels: Embassy Suites Chicago $(0.1) million; Hilton Garden Inn Chicago Downtown/Magnificent Mile $(0.1) million; Hyatt Centric Chicago Magnificent Mile $0.7 million; Hyatt Regency San Francisco $0.1 million; Renaissance Harborplace $0.1 million; and Renaissance Long Beach $26,000.

(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) 21 Hotel Comparable Portfolio includes all hotels owned by the Company as of December 31, 2018.

(5) 21 Hotel Comparable Portfolio, excluding prior year property tax adjustments, net represents the 21 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 46

Supplemental Financial Information
February 12, 2019

Property-Level Adjusted EBITDAre Reconciliation Q4 2018

	Hotels sorted by number of rooms		For the Three Months Ended December 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)	$	35,523	$	5,680	$	(289)	$	2,564	$	2,180	$	10,135	28.5%
2	Boston Park Plaza		27,541		4,969		—		4,439		—		9,408	34.2%
3	Renaissance Washington DC		19,783		1,145		—		2,459		1,724		5,328	26.9%
4	Hyatt Regency San Francisco		29,658		4,457		—		3,129		—		7,586	25.6%
5	Renaissance Orlando at SeaWorld ®		17,992		3,851		—		2,144		—		5,995	33.3%
6	Renaissance Harborplace (3)		9,635		1,245		—		1,480		—		2,725	28.3%
7	Wailea Beach Resort		25,851		6,201		—		3,855		—		10,056	38.9%
8	Renaissance Los Angeles Airport		7,888		1,001		—		1,047		—		2,048	26.0%
9	JW Marriott New Orleans		10,599		2,113		2		1,557		904		4,576	43.2%
10	Hilton Times Square		16,267		674		65		2,556		1,212		4,507	27.7%
11	Hyatt Centric Chicago Magnificent Mile		7,943		(417)		—		1,438		—		1,021	12.9%
12	Marriott Boston Long Wharf		14,720		3,118		—		2,667		—		5,785	39.3%
13	Renaissance Long Beach		6,969		1,182		—		925		—		2,107	30.2%
14	Embassy Suites Chicago		6,510		1,085		—		736		—		1,821	28.0%
15	Hilton Garden Inn Chicago Downtown/Magnificent Mile		5,231		709		—		647		—		1,356	25.9%
16	Renaissance Westchester		6,014		(102)		—		884		—		782	13.0%
17	Embassy Suites La Jolla		6,087		744		—		1,024		649		2,417	39.7%
18	Hilton New Orleans St. Charles		3,495		521		29		606		—		1,156	33.1%
19	Marriott Portland		3,725		983		—		398		—		1,381	37.1%
20	Courtyard by Marriott Los Angeles		2,916		(620)		—		253		1,161		794	27.2%
21	Oceans Edge Resort & Marina		5,017		5,443		(4,959)		780		—		1,264	25.2%
	21 Hotel Comparable Portfolio (4)		269,364		43,982		(5,152)		35,588		7,830		82,248	30.5%
	Add: Sold Hotels (5)
	Hilton North Houston		473		(82)		—		—		—		(82)	-17.3%
	Marriott Houston		423		68		—		—		—		68	16.1%
	Marriott Tysons Corner		5,605		1,557		—		432		—		1,989	35.5%
	Actual Portfolio (6)	$	275,865	$	45,525	$	(5,152)	$	36,020	$	7,830	$	84,223	30.5%

*Footnotes on page 49

PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS							Page 47

Supplemental Financial Information
February 12, 2019

Property-Level Adjusted EBITDAre Reconciliation Q4 2017

	Hotels sorted by number of rooms		For the Three Months Ended December 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)	$	32,212	$	5,604	$	(292)	$	2,481	$	1,927	$	9,720	30.2%
2	Boston Park Plaza		24,789		3,172		—		4,544		—		7,716	31.1%
3	Renaissance Washington DC		21,258		1,670		—		2,440		1,765		5,875	27.6%
4	Hyatt Regency San Francisco		26,972		3,071		—		3,060		—		6,131	22.7%
5	Renaissance Orlando at SeaWorld ®		17,920		3,803		—		2,187		—		5,990	33.4%
6	Renaissance Harborplace		9,453		412		—		1,468		—		1,880	19.9%
7	Wailea Beach Resort		23,442		4,979		—		4,002		—		8,981	38.3%
8	Renaissance Los Angeles Airport		7,382		740		—		785		—		1,525	20.7%
9	JW Marriott New Orleans		9,882		1,925		2		981		921		3,829	38.7%
10	Hilton Times Square		15,670		660		71		2,564		1,219		4,514	28.8%
11	Hyatt Centric Chicago Magnificent Mile (8)		8,277		362		—		1,477		—		1,839	22.2%
12	Marriott Boston Long Wharf		13,831		3,279		—		2,057		—		5,336	38.6%
13	Renaissance Long Beach (8)		7,137		1,391		—		830		—		2,221	31.1%
14	Embassy Suites Chicago		6,496		1,281		—		896		—		2,177	33.5%
15	Hilton Garden Inn Chicago Downtown/Magnificent Mile		5,290		773		—		784		—		1,557	29.4%
16	Renaissance Westchester		5,542		(69)		—		866		—		797	14.4%
17	Embassy Suites La Jolla		5,494		568		—		1,016		662		2,246	40.9%
18	Hilton New Orleans St. Charles		3,724		974		—		593		—		1,567	42.1%
19	Marriott Portland		3,911		1,079		—		411		—		1,490	38.1%
20	Courtyard by Marriott Los Angeles		3,062		614		—		292		—		906	29.6%
21	Oceans Edge Resort & Marina		3,275		(147)		104		747		—		704	21.5%
	21 Hotel Comparable Portfolio (4)		255,019		36,141		(115)		34,481		6,494		77,001	30.2%
	Add: Sold Hotels (5)
	Marriott Philadelphia		4,492		446		—		625		—		1,071	23.8%
	Marriott Quincy		7,715		1,214		—		1,193		—		2,407	31.2%
	Hyatt Regency Newport Beach (8)		8,132		545		—		916		—		1,461	18.0%
	Hilton North Houston		5,330		847		(47)		221		—		1,021	19.2%
	Marriott Houston		3,608		468		(16)		305		—		757	21.0%
	Marriott Tysons Corner		5,874		1,173		—		744		—		1,917	32.6%
	Actual Portfolio (6)	$	290,170	$	40,834	$	(178)	$	38,485	$	6,494	$	85,635	29.5%

*Footnotes on page 49

PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS							Page 48

Supplemental Financial Information
February 12, 2019

Property-Level Adjusted EBITDAre Reconciliation
Q4 2018/2017 Footnotes

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

(2) Other Adjustments for the fourth quarter of 2018 include: $0.1 million in amortization of lease intangibles at the Hilton Times Square; a total of $(0.3) million in noncash ground rent at the Hilton San Diego Bayfront, Hilton Times Square and JW Marriott New Orleans; $(5.0) million in hurricane-related business interruption insurance proceeds at the Oceans Edge Resort & Marina; and $29,000 in management transition costs at the Hilton New Orleans St. Charles.

(3) Hotel Adjusted EBITDAre for the fourth quarter of 2018 is impacted by a $0.3 million non-current year property tax credit, net of appeal fees, received at the Renaissance Harborplace.

(4) 21 Hotel Comparable Portfolio includes all hotels owned by the Company as of December 31, 2018.

(5) Sold Hotels for both the fourth quarters of 2018 and 2017 include results for the Houston hotels sold in October 2018, and the Marriott Tysons Corner sold in December 2018. Sold Hotels for the fourth quarter of 2017 also include results for the Marriott Philadelphia and the Marriott Quincy, both of which were sold in January 2018, and the Hyatt Regency Newport Beach sold in July 2018.

(6) Actual Portfolio for the fourth quarter of 2018 includes all 21 hotels owned by the Company as of December 31, 2018, plus the Sold Hotels as applicable. Actual Portfolio for the fourth quarter of 2017 includes all 27 hotels owned by the Company as of December 31, 2017, plus the Sold Hotels as applicable.

(7) Other Adjustments for the fourth quarter of 2017 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 $41,000 in hurricane-related uninsured losses at the Houston hotels and Oceans Edge Resort & Marina.

(8) Hotel Adjusted EBITDAre for the fourth quarter of 2017 is impacted by a total of $0.3 million in non-current year property tax credits, net of appeal fees, received at the following hotels: Hyatt Centric Chicago Magnificent Mile $0.2 million; Hyatt Regency Newport Beach $7,000; and Renaissance Long Beach $26,000.

PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS							Page 49

Supplemental Financial Information
February 12, 2019

Property-Level Adjusted EBITDAre Reconciliation FY 2018

	Hotels sorted by number of rooms		For the Year Ended December 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)	$	157,179	$	34,422	$	(1,158)	$	10,225	$	7,928	$	51,417	32.7%
2	Boston Park Plaza		100,504		13,379		—		17,994		—		31,373	31.2%
3	Renaissance Washington DC (3)		83,735		7,634		(291)		9,800		6,957		24,100	28.8%
4	Hyatt Regency San Francisco (3)		116,383		19,108		—		12,205		—		31,313	26.9%
5	Renaissance Orlando at SeaWorld ®		78,656		18,795		(263)		8,637		—		27,169	34.5%
6	Renaissance Harborplace (3)		42,482		5,422		(127)		5,843		—		11,138	26.2%
7	Wailea Beach Resort		106,010		26,159		(47)		15,800		—		41,912	39.5%
8	Renaissance Los Angeles Airport (3)		32,054		4,162		(26)		3,799		—		7,935	24.8%
9	JW Marriott New Orleans (3)		35,953		5,217		(242)		4,590		3,617		13,182	36.7%
10	Hilton Times Square		54,210		(4,615)		265		10,209		4,826		10,685	19.7%
11	Hyatt Centric Chicago Magnificent Mile (3)		34,213		406		—		5,861		—		6,267	18.3%
12	Marriott Boston Long Wharf (3)		53,592		8,611		(60)		10,012		—		18,563	34.6%
13	Renaissance Long Beach		28,627		5,715		(64)		3,511		—		9,162	32.0%
14	Embassy Suites Chicago (3)		27,852		5,954		—		2,963		—		8,917	32.0%
15	Hilton Garden Inn Chicago Downtown/Magnificent Mile (3)		22,630		3,813		—		2,867		—		6,680	29.5%
16	Renaissance Westchester		22,887		(838)		(54)		3,587		—		2,695	11.8%
17	Embassy Suites La Jolla		25,727		4,133		—		4,095		2,596		10,824	42.1%
18	Hilton New Orleans St. Charles		13,976		2,444		29		2,405		—		4,878	34.9%
19	Marriott Portland		16,333		5,149		(17)		1,595		—		6,727	41.2%
20	Courtyard by Marriott Los Angeles		12,562		1,524		—		1,053		1,161		3,738	29.8%
21	Oceans Edge Resort & Marina		20,558		9,443		(5,666)		3,038		—		6,815	33.2%
	21 Hotel Comparable Portfolio (4)		1,086,123		176,037		(7,721)		140,089		27,085		335,490	30.9%
	Add: Sold Hotels (5)
	Marriott Philadelphia		232		(352)		—		—		—		(352)	-151.7%
	Marriott Quincy		371		(591)		—		—		—		(591)	-159.3%
	Hyatt Regency Newport Beach (3)		20,372		3,319		—		1,773		—		5,092	25.0%
	Hilton North Houston		13,192		370		2		691		—		1,063	8.1%
	Marriott Houston		9,219		356		(23)		831		—		1,164	12.6%
	Marriott Tysons Corner		23,679		5,608		(32)		2,442		—		8,018	33.9%
	Actual Portfolio (6)	$	1,153,188	$	184,747	$	(7,774)	$	145,826	$	27,085	$	349,884	30.3%

*Footnotes on page 52

PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS							Page 50

Supplemental Financial Information
February 12, 2019

Property-Level Adjusted EBITDAre Reconciliation FY 2017

	Hotels sorted by number of rooms		For the Year Ended December 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)	$	147,150	$	30,999	$	(1,160)	$	11,068	$	7,800	$	48,707	33.1%
2	Boston Park Plaza		96,020		10,529		—		19,337		—		29,866	31.1%
3	Renaissance Washington DC		87,118		10,033		—		9,905		7,118		27,056	31.1%
4	Hyatt Regency San Francisco (8)		110,699		16,668		—		12,269		—		28,937	26.1%
5	Renaissance Orlando at SeaWorld ®		74,659		16,554		66		8,833		—		25,453	34.1%
6	Renaissance Harborplace (8)		45,349		6,340		—		5,937		—		12,277	27.1%
7	Wailea Beach Resort		87,458		14,285		—		16,193		—		30,478	34.8%
8	Renaissance Los Angeles Airport		32,889		5,444		—		2,952		—		8,396	25.5%
9	JW Marriott New Orleans		39,053		7,071		(1)		4,197		3,682		14,949	38.3%
10	Hilton Times Square		52,598		(4,233)		290		10,262		4,853		11,172	21.2%
11	Hyatt Centric Chicago Magnificent Mile (8)		33,795		1,993		—		5,801		—		7,794	23.1%
12	Marriott Boston Long Wharf		59,127		15,362		—		8,132		273		23,767	40.2%
13	Renaissance Long Beach (8)		28,573		6,150		—		3,271		—		9,421	33.0%
14	Embassy Suites Chicago (8)		26,833		6,258		—		3,599		—		9,857	36.7%
15	Hilton Garden Inn Chicago Downtown/Magnificent Mile (8)		21,338		3,563		—		3,115		—		6,678	31.3%
16	Renaissance Westchester		21,902		(343)		—		3,436		—		3,093	14.1%
17	Embassy Suites La Jolla		24,004		3,521		—		4,061		2,646		10,228	42.6%
18	Hilton New Orleans St. Charles		14,265		3,247		—		2,373		—		5,620	39.4%
19	Marriott Portland		17,228		5,836		—		1,625		—		7,461	43.3%
20	Courtyard by Marriott Los Angeles		13,412		3,568		—		1,164		—		4,732	35.3%
21	Oceans Edge Resort & Marina		14,372		32		776		2,954		—		3,762	26.2%
	21 Hotel Comparable Portfolio (4)		1,047,842		162,877		(29)		140,484		26,372		329,704	31.5%
	Less: Prior Ownership Results (9)
	Oceans Edge Resort & Marina		(9,249)		(1,393)		—		(1,463)		—		(2,856)	30.9%
	Add: Sold Hotels (5)
	Fairmont Newport Beach		3,541		1,019		—		—		—		1,019	28.8%
	Marriott Park City		6,440		1,447		—		699		—		2,146	33.3%
	Marriott Philadelphia		17,942		2,230		—		2,510		—		4,740	26.4%
	Marriott Quincy		30,480		4,155		—		4,685		—		8,840	29.0%
	Hyatt Regency Newport Beach (8)		39,686		6,604		—		3,576		—		10,180	25.7%
	Hilton North Houston		19,613		144		423		2,677		—		3,244	16.5%
	Marriott Houston		14,067		537		425		2,015		—		2,977	21.2%
	Marriott Tysons Corner		23,194		4,733		—		2,994		—		7,727	33.3%
	Actual Portfolio (6)	$	1,193,556	$	182,353	$	819	$	158,177	$	26,372	$	367,721	30.8%

*Footnotes on page 52

PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS							Page 51

Supplemental Financial Information
February 12, 2019

Property-Level Adjusted EBITDAre Reconciliation
FY 2018/2017 Footnotes

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

(2) Other Adjustments for 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 $(1.1) million in noncash ground rent at the Hilton San Diego Bayfront, Hilton Times Square and JW Marriott New Orleans; a total of $(1.1) million in hospitality procurement supply rebates received by our Marriott-branded hotels; $(5.8) million in hurricane-related business interruption insurance proceeds at the Oceans Edge Resort & Marina; a total of $0.1 million in hurricane-related uninsured losses at the Houston hotels and the Oceans Edge Resort & Marina; and $29,000 in management transition costs at the Hilton New Orleans St. Charles.

(3) Hotel Adjusted EBITDAre for 2018 is impacted by room renovations at the Hyatt Regency San Francisco, JW Marriott New Orleans, Marriott Boston Long Wharf and Renaissance Los Angeles Airport, and by a total of $0.2 million in non-current year property tax (assessments) credits, net of appeal fees, received at the following hotels: Embassy Suites Chicago $(41,000); Hilton Garden Inn Chicago Downtown/Magnificent Mile $(0.1) million; Hyatt Centric Chicago Magnificent Mile $(15,000); Hyatt Regency Newport Beach $5,000; Renaissance Harborplace $0.3 million; and Renaissance Washington DC $(4,000).

(4) 21 Hotel Comparable Portfolio includes all hotels owned by the Company as of December 31 2018.

(5) Sold Hotels for both 2018 and 2017 include results for the Marriott Philadelphia and the Marriott Quincy, both of which were sold in January 2018, the Hyatt Regency Newport Beach sold in July 2018, the Houston hotels sold in October 2018 and the Marriott Tysons Corner sold in December 2018. Sold Hotels for 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 2018 includes all 21 hotels owned by the Company as of December 31, 2018, plus the Sold Hotels as applicable. Actual Portfolio for 2017 includes all 27 hotels owned by the Company as of December 31, 2017, plus the Sold Hotels as applicable.

(7) Other Adjustments for 2017 include: a total of $0.3 million in amortization of lease intangibles at the Hilton Times Square and JW Marriott New Orleans; a total of $(1.1) million in noncash ground rent at the Hilton San Diego Bayfront, Hilton Times Square and JW Marriott New Orleans; and a total of $1.7 million in hurricane-related uninsured losses at the Houston hotels, Oceans Edge Resort & Marina and Renaissance Orlando at SeaWorld®.

(8) Hotel Adjusted EBITDAre for 2017 is impacted by a total of $0.8 million in non-current year property tax (assessments) credits, net of appeal fees, received at the following hotels: Embassy Suites Chicago $(0.1) million; Hilton Garden Inn Chicago Downtown/Magnificent Mile $(0.1) million; Hyatt Centric Chicago Magnificent Mile $0.7 million; Hyatt Regency Newport Beach $7,000; Hyatt Regency San Francisco $0.1 million; Renaissance Harborplace $0.1 million; and Renaissance Long Beach $26,000.

(9) 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 52