Braemar Hotels & Resorts 8K Results of Operations and Financial Condition | BHR 25 Feb 16

Exhibit 99.1

NEWS RELEASE

Contact:	Deric Eubanks	Jordan Jennings	Stacy Feit
	Chief Financial Officer	Investor Relations	Financial Relations Board
	(972) 490-9600	(972) 778-9487	(213) 486-6549

ASHFORD PRIME REPORTS FOURTH QUARTER AND YEAR END 2015 RESULTS

DALLAS, February 25, 2016 — Ashford Hospitality Prime, Inc. (NYSE: AHP) (“Ashford Prime” or the “Company”) today reported the following results and performance measures for the fourth quarter ended December 31, 2015. The performance measurements for Occupancy, Average Daily Rate (ADR), Revenue Per Available Room (RevPAR), and Hotel EBITDA are comparable assuming each of the hotel properties in the Company’s hotel portfolio as of December 31, 2015 were owned as of the beginning of each of the periods presented. Unless otherwise stated, all reported results compare the fourth quarter ended December 31, 2015, with the fourth quarter ended December 31, 2014 (see discussion below). The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release.

OVERVIEW

· Focused strategy of investing in luxury hotels in resort and gateway markets

· Targets conservative leverage levels of Net Debt/EBITDA of 5.0x or less

· Highly-aligned management team and advisory structure

· Dividend yield of approximately 4%

FINANCIAL AND OPERATING HIGHLIGHTS

· RevPAR for all hotels increased 4.4% to $182.46 during the fourth quarter, driven by a 4.0% increase in ADR and a 0.4% increase in occupancy

· Adjusted EBITDA was $19.1 million, which reflected 9% growth over the prior year

· Adjusted funds from operations (AFFO) was $0.22 per diluted share for the quarter as compared with $0.21 from the prior-year quarter

· On December 21, 2015, the Company announced it had completed the acquisition of the award-winning 180-room Ritz-Carlton St. Thomas for $64 million

· Capex invested in the quarter was $5.0 million, bringing the full-year total to $19.3 million.

CAPITAL STRUCTURE

At December 31, 2015, the Company had total assets of $1.4 billion in continuing operations. As of December 31, 2015, the Company had $840 million of mortgage debt in continuing operations of which $49 million related to its joint venture partner’s share of debt on the Capital Hilton and Hilton La Jolla Torrey Pines. Ashford Prime’s total combined debt had a blended average interest rate of 4.7%.

On December 21, 2015, the Company announced it had completed the acquisition of the award-winning 180-room Ritz-Carlton St. Thomas for $64 million. The property will continue to be operated as a Ritz-Carlton under a long-term management agreement with Ritz-Carlton. Concurrent with the completion of the acquisition, the Company financed the hotel with a $42 million non-recourse mortgage loan. This loan is interest only and provides for a floating interest rate of LIBOR + 4.95% with a two-year term with three, one-year extension options subject to the satisfaction of certain conditions.

PORTFOLIO REVPAR

As of December 31, 2015, the Ashford Prime portfolio consisted of direct hotel investments with twelve properties classified in continuing operations.

· Comparable RevPAR increased 4.4% to $182.46 for all hotels on a 4.0% increase in ADR and a 0.4% increase in occupancy

HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS

The Company believes year-over-year Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin comparisons are more meaningful to gauge the performance of the Company’s hotels than sequential quarter-over-quarter comparisons. Given the substantial seasonality in the Company’s portfolio, to help investors better understand this seasonality, the Company provides quarterly detail on its Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin for the current and certain prior-year periods based upon the number of hotels in the Company’s portfolio as of the end of the current period. As the Company’s portfolio mix changes from time to time so will the seasonality for Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin. The details of the quarterly calculations for the previous four quarters for the twelve hotels included in continuing operations are provided in the table attached to this release.

COMMON STOCK DIVIDEND

On December 10, 2015, the Company announced that its Board of Directors had declared a quarterly cash dividend of $0.10 per diluted share for the Company’s common stock for the fourth quarter ending December 31, 2015, payable on January 15, 2016, to shareholders of record as of December 31, 2015. This reflects the Company’s revised cash dividend policy announced on May 13, 2015, when Ashford Prime’s Board of Directors increased its quarterly cash dividend from $0.05 to $0.10 per diluted share for the Company’s common stock, representing a 100% increase. The Board also approved the dividend policy for 2016, during which the Company expects to pay a quarterly cash dividend of $0.10 per share, or $0.40 per share on an annualized basis, subject to quarterly review.

“We are pleased with our fourth quarter RevPAR performance, which reflected strong contribution from our recently acquired Bardessono property in Napa Valley during our first full quarter of ownership,” commented Monty J. Bennett, Ashford Prime’s Chairman and Chief Executive Officer. “We were also very excited to have completed the acquisition of the Ritz-Carlton St. Thomas which further strengthens the Prime portfolio. We expect this trophy asset to be a significant contributor given that it recently underwent a comprehensive $22 million renovation that is driving strong RevPAR growth and meaningful upside potential.”

Mr. Bennett concluded, “As we continue to execute on our strategy of focusing on high quality luxury assets in resort and gateway markets, the Independent Directors of our board are concurrently actively engaged in a strategic review of the Company in order to maximize value for our shareholders. This comprehensive review comprises exploring a full range of strategic alternatives, including a possible sale of the Company.”

The Independent Directors are in the process of the strategic review, and there can be no assurance that the Company will enter into any transaction at this time or in the future. The Company does not intend to make any further public comment regarding the review until it has been completed.

INVESTOR CONFERENCE CALL AND SIMULCAST

Ashford Hospitality Prime, Inc. will conduct a conference call on Friday, February 26, 2016, at 11:00 a.m. ET. The number to call for this interactive teleconference is (719) 325-2308. A replay of the conference call will be available through Friday, March 4, 2016, by dialing (719) 457-0820 and entering the confirmation number, 4881188.

The Company will also provide an online simulcast and rebroadcast of its fourth quarter 2015 earnings release conference call. The live broadcast of Ashford Hospitality Prime’s quarterly conference call will be available online at the Company’s web site, www.ahpreit.com on Friday, February 26, 2016, beginning at 11:00 a.m. ET. The online replay will follow shortly after the call and continue for approximately one year.

Substantially all of our non-current assets consist of real estate investments secured by real estate. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, most industry investors consider supplemental measures of performance, which are not measures of operating performance under GAAP, to assist in evaluating a real estate company’s operations. These supplemental measures include FFO, AFFO, EBITDA, and Hotel EBITDA. FFO is computed in accordance with our interpretation of standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the NAREIT definition differently than us. Neither FFO, AFFO, EBITDA, nor Hotel EBITDA represents cash generated from operating activities as determined by GAAP and should not be considered as an alternative to a) GAAP net income (loss) as an indication of our financial performance or b) GAAP cash flows from operating activities as a measure of our liquidity, nor are such measures indicative of funds available to satisfy our cash needs, including our ability to make cash distributions. However, management believes FFO, AFFO, EBITDA, and Hotel EBITDA to be meaningful measures of a REIT’s performance and should be considered along with, but not as an alternative to, net income and cash flow as a measure of our operating performance.

* * * * *

Ashford Hospitality Prime is a real estate investment trust (REIT) focused on investing in luxury hotels located in resort and gateway markets.

Follow Chairman and CEO Monty Bennett on Twitter at www.twitter.com/MBennettAshford or @MBennettAshford.

Ashford has created an Ashford App for the hospitality REIT investor community. The Ashford App is available for free download at Apple’s App Store and the Google Play Store by searching “Ashford.”

Certain statements and assumptions in this press release contain or are based upon “forward-looking” information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release include, among others, statements about the implied share price for the Company’s common stock. These forward-looking statements are subject to risks and uncertainties. When we use the words “will likely result,” “may,” “anticipate,” “estimate,” “should,” “expect,” “believe,” “intend,” or similar expressions, we intend to identify forward-looking statements. Such statements are subject to numerous assumptions and uncertainties, many of which are outside Ashford Prime’s control.

These forward-looking statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated, including, without limitation: general volatility of the capital markets and the market price of our common stock; changes in our business or investment strategy; availability, terms and deployment of capital; availability of qualified personnel; changes in our industry and the market in which we operate, interest rates or the general economy; our ability to successfully complete and integrate acquisitions, and manage our planned growth, and the degree and nature of our competition. These and other risk factors are more fully discussed in Ashford Prime’s filings with the Securities and Exchange Commission. EBITDA is defined as net income before interest, taxes, depreciation and amortization. EBITDA yield is defined as trailing twelve month EBITDA divided by the purchase price. A capitalization rate is determined by dividing the property’s annual net operating income by the purchase price. Net operating income is the property’s funds from operations minus a capital expense reserve of either 4% or 5% of gross revenues. Hotel EBITDA flow-through is the change in Hotel EBITDA divided by the change in total revenues. Hotel EBITDA Margin is Hotel EBITDA divided by total revenues. Funds from operations (“FFO”), as defined by the White Paper on FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”) in April 2002, represents net income (loss) computed in accordance with generally accepted accounting principles (“GAAP”), excluding gains (or losses) from sales of properties and extraordinary items as defined by GAAP, plus depreciation and amortization of real estate assets, and net of adjustments for the portion of these items related to unconsolidated entities and joint ventures.

The forward-looking statements included in this press release are only made as of the date of this press release. Investors should not place undue reliance on these forward-looking statements. We are not obligated to publicly update or revise any forward-looking statements, whether as a result of new information, future events or circumstances, changes in expectations or otherwise.

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

(unaudited)

	December 31,			December 31,
	2015			2014
ASSETS
Cash and cash equivalents	$	105,039		$	171,439
Investments in hotel properties, net	1,091,479			990,303
Restricted cash	33,135			29,646
Accounts receivable, net of allowance of $68 and $47, respectively	13,370			12,382
Inventories	1,451			696
Note receivable	8,098			8,098
Deferred costs, net	755			1,204
Prepaid expenses	3,132			2,422
Investment in AIM REHE Fund	48,365			—
Investment in Ashford Inc., at fair value	10,377			—
Derivative assets	753			35
Other assets	2,543			1,193
Intangible asset, net	23,160			2,542
Due from related party, net	371			541
Due from third-party hotel managers	10,722			5,504

Total assets	$	1,352,750		$	1,226,005

LIABILITIES AND EQUITY
Liabilities:
Indebtedness, net	$	835,592		$	761,727
Accounts payable and accrued expenses	43,568			29,273
Dividends payable	3,439			1,425
Unfavorable management contract liabilities	158			316
Due to Ashford Trust OP, net	528			896
Due to Ashford Inc.	6,369			2,546
Due to third-party hotel managers	1,158			954
Intangible liability, net	3,682			3,739
Other liabilities	1,181			1,131

Total liabilities	895,675			802,007

5.50% Series B cumulative convertible preferred stock, $0.01 par value, 2,600,000 shares issued and outstanding at December 31, 2015	62,248			—
Redeemable noncontrolling interests in operating partnership	61,781			149,555

Equity:
Common stock, $0.01 par value, 200,000,000 shares authorized, 28,471,775 and 24,464,163 shares issued and outstanding at December 31, 2015 and December 31, 2014, respectively	285			245
Additional paid-in capital	438,347			376,869
Accumulated deficit	(99,773		)	(98,210		)
Total stockholders’ equity of the Company	338,859			278,904
Noncontrolling interest in consolidated entities	(5,813		)	(4,461		)

Total equity	333,046			274,443

Total liabilities and equity	$	1,352,750		$	1,226,005

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2015			2014			2015			2014
REVENUE
Rooms	$	62,575		$	55,011		$	255,443		$	226,495
Food and beverage	21,526			18,366			79,894			67,854
Other	4,023			3,350			14,061			12,844

Total hotel revenue	88,124			76,727			349,398			307,193
Other	36			24			147			115

Total revenue	88,160			76,751			349,545			307,308

EXPENSES
Hotel operating expenses
Rooms	14,446			13,072			56,341			51,636
Food and beverage	14,609			11,920			53,535			44,297
Other expenses	24,337			20,515			93,742			80,593
Management fees	3,485			3,117			14,049			12,525

Total hotel operating expenses	56,877			48,624			217,667			189,051

Property taxes, insurance and other	4,736			4,047			18,517			16,174
Depreciation and amortization	11,440			10,550			43,824			40,686
Advisory services fee:
Base advisory fee	2,135			2,281			8,648			8,739
Incentive fee	3,822			—			3,822			—
Reimbursable expenses	411			433			1,827			1,690
Non-cash stock/unit-based compensation	1,745			564			3,592			2,105

Transaction costs	283			—			538			1,871
Corporate, general and administrative:
Non-cash stock/unit-based compensation	—			—			254			246
Other general and administrative	1,324			789			4,880			2,996

Total operating expenses	82,773			67,288			303,569			263,558

OPERATING INCOME	5,387			9,463			45,976			43,750

Equity in earnings (loss) of unconsolidated entity	1,292			—			(2,927		)	—
Interest income	13			7			34			27
Other income	—			—			1,233			—
Interest expense	(9,029		)	(9,372		)	(35,254		)	(37,203		)
Amortization of loan costs	(740		)	(500		)	(2,575		)	(1,828		)
Write-off of loan costs and exit fees	—			—			(54		)	—
Unrealized loss on investments	(1,988		)	—			(7,609		)	—
Unrealized loss on derivatives	(1,151		)	(48		)	(3,252		)	(111		)

INCOME (LOSS) BEFORE INCOME TAXES	(6,216		)	(450		)	(4,428		)	4,635
Income tax (expense) benefit	108			(475		)	(263		)	(1,097		)

NET INCOME (LOSS)	(6,108		)	(925		)	(4,691		)	3,538
Income from consolidated entities attributable to noncontrolling interest	(1,346		)	(1,844		)	(2,414		)	(1,103		)
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership	1,064			717			393			(496		)

NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY	(6,390		)	(2,052		)	(6,712		)	1,939
Preferred dividends	(893		)	—			(1,986		)	—
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS	$	(7,283	)	$	(2,052	)	$	(8,698	)	$	1,939

INCOME (LOSS) PER SHARE — BASIC AND DILUTED
Basic:

Net income (loss) attributable to common stockholders	$	(0.26	)	$	(0.08	)	$	(0.34	)	$	0.08

Weighted average common shares outstanding — basic	28,331			24,954			25,888			24,473

Diluted:

Net income (loss) attributable to common stockholders	$	(0.26	)	$	(0.08	)	$	(0.34	)	$	0.07

Weighted average common shares outstanding — diluted	28,331			24,954			25,888			33,325

Dividends declared per common share:	$	0.10		$	0.05		$	0.35		$	0.20

Amounts attributable to common stockholders:
Net income (loss) attributable to the Company	$	(6,390	)	$	(2,052	)	$	(6,712	)	$	1,939
Preferred dividends	(893		)	—			(1,986		)	—
Net income (loss) attributable to common stockholders	$	(7,283	)	$	(2,052	)	$	(8,698	)	$	1,939

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA

(in thousands)

(unaudited)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2015			2014			2015			2014

Net income (loss)	$	(6,108	)	$	(925	)	$	(4,691	)	$	3,538
Income from consolidated entities attributable to noncontrolling interest	(1,346		)	(1,844		)	(2,414		)	(1,103		)
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership	1,064			717			393			(496		)
Net income (loss) attributable to the Company	(6,390		)	(2,052		)	(6,712		)	1,939

Interest income	(13		)	(7		)	(34		)	(26		)
Interest expense and amortization of loan costs	9,385			9,452			36,309			37,188
Depreciation and amortization	10,729			9,778			40,950			37,493
Income tax expense	(108		)	475			263			1,097
Net income (loss) attributable to redeemable noncontrolling interests in operating partnership	(1,064		)	(717		)	(393		)	496

EBITDA available to the Company and OP unitholders	12,539			16,929			70,383			78,187

Amortization of unfavorable management contract liabilities	(39		)	(39		)	(158		)	(158		)
Write-off of loan costs and exit fees	—			—			54			—
Transaction costs	378			—			633			1,871
Gain on insurance settlements	(21		)	(23		)	(21		)	(23		)
Unrealized loss on investments	1,988			—			7,609			—
Unrealized loss on derivatives	1,151			48			3,248			111
Other income (1)	—			—			(1,233		)	—
Compensation adjustment related to modified employment terms	—			—			—			573
Non-cash, non-employee stock/unit-based compensation	1,745			560			3,846			1,778
Strategic alternatives and other costs	61			—			973			—
Advisory services incentive fee (2)	2,548			—			2,548			—
Company’s portion of unrealized (gain) loss of AIM REHE Fund	(1,292		)	—			2,927			—
Adjusted EBITDA available to the Company and OP unitholders	$	19,058		$	17,475		$	90,809		$	82,339

NOTES:

(1) Other income, primarily consisting of net realized gain on marketable securities is excluded from Adjusted EBITDA.

(2) The incentive fee is payable to Ashford Inc. in three annual installments. The deferred portion related to the second and third payments is excluded from Adjusted EBITDA on this schedule and will be included in future periods.

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO FUNDS FROM OPERATIONS (“FFO”) AND ADJUSTED FFO

(in thousands, except per share amounts)

(unaudited)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2015			2014			2015			2014

Net income (loss)	$	(6,108	)	$	(925	)	$	(4,691	)	$	3,538
Income from consolidated entities attributable to noncontrolling interest	(1,346		)	(1,844		)	(2,414		)	(1,103		)
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership	1,064			717			393			(496		)
Preferred dividends	(893		)	—			(1,986		)	—
Net income (loss) attributable to common stockholders	(7,283		)	(2,052		)	(8,698		)	1,939

Depreciation and amortization on real estate	10,729			9,778			40,950			37,493
Net income (loss) attributable to redeemable noncontrolling interests in operating partnership	(1,064		)	(717		)	(393		)	496

FFO available to common stockholders and OP unitholders	2,382			7,009			31,859			39,928

Preferred dividends	893			—			1,986			—
Unrealized loss on investments	1,988			—			7,609			—
Unrealized loss on derivatives	1,151			48			3,248			111
Other income (1)	—			—			(1,233		)	—
Transaction costs	378			—			633			1,871
Gain on insurance settlements	(21		)	(23		)	(21		)	(23		)
Strategic alternatives and other costs	61			—			973			—
Compensation adjustment related to modified employment terms	—			—			—			573
Write-off of loan costs and exit fees	—			—			54			—
Advisory services incentive fee (2)	2,548			—			2,548			—
Company’s portion of unrealized (gain) loss of AIM REHE Fund	(1,292		)	—			2,927			—

Adjusted FFO available to the Company and OP unitholders	$	8,088		$	7,034		$	50,583		$	42,460

Adjusted FFO per diluted share available to common stockholders and OP unitholders	$	0.22		$	0.21		$	1.46		$	1.27

Weighted average diluted shares	36,091			34,068			34,542			33,421

NOTES:

(1) Other income, primarily consisting of net realized gain/loss on marketable securities is excluded from Adjusted FFO.

(2) The incentive fee is payable to Ashford Inc. in three annual installments. The deferred portion related to the second and third payments is excluded from Adjusted FFO on this schedule and will be included in future periods.

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

SUMMARY OF INDEBTEDNESS

DECEMBER 31, 2015

(dollars in thousands)

(unaudited)

												Comparable		Comparable
			Fixed-Rate			Floating-Rate			Total			TTM Hotel		TTM EBITDA
Indebtedness	Maturity	Interest Rate	Debt			Debt			Debt			EBITDA (5)		Debt Yield

GACC Sofitel - 1 hotel	March 2016	LIBOR + 2.30%	$	—		$	80,000	(3)	$	80,000		$	8,360	10.5	%
Senior credit facility - Various	November 2016	LIBOR + 2.25% to 3.75%	—			—		(1)	—			N/A		N/A
Credit Agricole Pier House - 1 hotel	March 2017	LIBOR + 2.25% to 2.50%	—			70,000		(2)	70,000			9,728		13.9	%
Wachovia Philly CY - 1 hotel	April 2017	5.91%	33,381			—			33,381			12,518		37.5	%
Wachovia 3 - 2 hotels	April 2017	5.95%	122,374			—			122,374			20,249		16.5	%
Wachovia 7 - 3 hotels	April 2017	5.95%	249,020			—			249,020			31,582		12.7	%
Column Financial - 1 hotel	December 2017	LIBOR + 4.95%	—			40,000		(3)	40,000			3,845		9.6	%
Apollo - 1 hotel	December 2017	LIBOR + 4.95%	—			42,000		(3)	42,000			9,156		21.8	%
TIF Philly CY - 1 hotel	June 2018	12.85%	8,098			—			8,098			N/A		N/A
Aareal - 2 hotels	November 2019	LIBOR + 2.65%	—			195,359		(4)	195,359			27,818		14.2	%

Total			$	412,873		$	427,359		$	840,232		$	123,256	14.7	%

Percentage			49.1		%	50.9		%	100.0		%

Weighted average interest rate			6.08		%	3.39		%	4.71		%

All indebtedness is non-recourse with the exception of the senior credit facility.

(1) This credit facility has two one-year extension options subject to advance notice, certain conditions and a 0.25% extension fee beginning November 2016.

(2) On March 7, 2015, we refinanced our $69.0 million mortgage loan due September 2015 with a $70.0 million loan due March 2017 with three one-year extension options. The new loan provides for a floating interest rate of LIBOR + 2.25%.

(3) This mortgage loan has three one-year extension options subject to satisfaction of certain conditions.

(4) This mortgage loan has two one-year extension options subject to satisfaction of certain conditions.

(5) See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

INDEBTEDNESS BY MATURITY ASSUMING EXTENSION OPTIONS ARE EXERCISED

DECEMBER 31, 2015

(in thousands)

(unaudited)

	2016		2017		2018		2019		2020		Thereafter		Total

Senior credit facility - Various	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Wachovia Philly CY - 1 hotel	—		32,532		—		—		—		—		32,532
Wachovia 3 - 2 hotels	—		119,245		—		—		—		—		119,245
Wachovia 7 - 3 hotels	—		242,202		—		—		—		—		242,202
TIF Philly CY - 1 hotel	—		—		8,098		—		—		—		8,098
GACC Sofitel - 1 hotel	—		—		—		80,000		—		—		80,000
Credit Agricole Pier House - 1 hotel	—		—		—		—		70,000		—		70,000
Column Financial - 1 hotel	—		—		—		—		40,000		—		40,000
Apollo - 1 hotel	—		—		—		—		42,000		—		42,000
Aareal - 2 hotels	—		—		—		—		—		177,486		177,486

Principal due in future periods	$	—	$	393,979	$	8,098	$	80,000	$	152,000	$	177,486	$	811,563

Scheduled amortization payments remaining	8,856		7,526		2,939		3,120		3,312		2,916		28,669

Total indebtedness	$	8,856	$	401,505	$	11,037	$	83,120	$	155,312	$	180,402	$	840,232

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

KEY PERFORMANCE INDICATORS

(unaudited)

	Three Months Ended
	December 31,
	Actual			Pre-acquisition			Comparable			Actual			Pre-acquisition (A)			Comparable			Comparable
	2015			2015			2015			2014			2014			2014			% Variance

ALL HOTELS:
Rooms revenue (in thousands)	$	62,575		$	3,765		$	66,340		$	55,011		$	8,488		$	63,499		4.47	%
RevPAR	$	178.74		$	278.91		$	182.46		$	161.30		$	381.27		$	174.78		4.39	%
Occupancy	78.59		%	72.02		%	78.34		%	79.01		%	62.98		%	78.03		%	0.40	%
ADR	$	227.45		$	387.25		$	232.91		$	204.15		$	605.41		$	224.00		3.98	%

	Year Ended
	December 31,
	Actual			Pre-acquisition			Comparable			Actual			Pre-acquisition (A)			Comparable			Comparable
	2015			2015			2015			2014			2014			2014			% Variance

ALL HOTELS:
Rooms revenue (in thousands)	$	255,443		$	32,154		$	287,597		$	226,495		$	41,250		$	267,745		7.41	%
RevPAR	$	186.76		$	432.43		$	199.43		$	171.37		$	346.29		$	185.83		7.32	%
Occupancy	82.32		%	79.67		%	82.19		%	81.62		%	70.12		%	80.67		%	1.88	%
ADR	$	226.87		$	542.81		$	242.66		$	209.96		$	493.85		$	230.36		5.34	%

NOTES:

(1)		The above comparable information assumes the twelve hotel properties owned and included in the Company’s operations at December 31, 2015 were owned as of the beginning of each of the periods presented.
(2)		All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

FOOTNOTES:
(A)		These amounts include immaterial comparability adjustments to conform the Company’s 2014 actual amounts to the industry’s Uniform System of Accounts for the Lodging Industry Eleventh Revised Edition, which became effective January 1, 2015.

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

HOTEL EBITDA

(dollars in thousands)

(unaudited)

	Three Months Ended
	December 31,
	Actual			Pre-acquisition			Comparable			Actual			Pre-acquisition (A)			Comparable			Comparable
ALL HOTELS:	2015			2015			2015			2014			2014			2014			% Variance
REVENUE
Rooms	$	62,575		$	3,765		$	66,340		$	55,011		$	8,488		$	63,499		4.5	%
Food and beverage	21,526			2,537			24,063			18,366			4,638			23,004			4.6	%
Other	4,023			1,404			5,427			3,350			2,082			5,432			-0.1	%
Total hotel revenue	88,124			7,706			95,830			76,727			15,208			91,935			4.2	%

EXPENSES
Rooms	$	14,446		$	1,322		$	15,768		$	13,072		$	2,027		$	15,099		4.4	%
Food and beverage	14,609			2,495			17,104			11,920			4,656			16,576			3.2	%
Other direct	1,365			747			2,112			1,459			772			2,231			-5.3	%
Other indirect	21,086			3,019			24,105			17,789			5,655			23,444			2.8	%
Management fees, includes base and incentive fees	4,849			(42		)	4,807			3,895			446			4,341			10.7	%
Total hotel operating expenses	56,355			7,541			63,896			48,135			13,556			61,691			3.6	%
Property taxes, insurance, and other	4,740			166			4,906			4,065			372			4,437			10.6	%
HOTEL EBITDA	27,029			$	(1	)	27,028			24,527			1,280			25,807			4.7	%
Hotel EBITDA Margin	30.67		%	-0.01		%	28.20		%	31.52		%	8.42		%	28.07		%	0.13	%

Minority interest in earnings of consolidated joint ventures	1,339						1,339			1,427						1,427			-6.2	%
HOTEL EBITDA
excluding minority interest in joint ventures	$	25,690		$	(1	)	$	25,689		$	23,100		$	1,281		$	24,380		5.4	%

	Year Ended
	December 31,
	Actual			Pre-acquisition			Comparable			Actual			Pre-acquisition (A)			Comparable			Comparable
ALL HOTELS:	2015			2015			2015			2014			2014			2014			% Variance
REVENUE
Rooms	$	255,443		$	32,154		$	287,597		$	226,495		$	41,250		$	267,745		7.4	%
Food and beverage	79,894			16,336			96,230			67,854			22,814			90,667			6.1	%
Other	14,061			8,695			22,756			12,844			9,600			22,444			1.4	%
Total hotel revenue	349,398			57,185			406,583			307,193			73,664			380,856			6.8	%

EXPENSES
Rooms	$	56,341		$	8,882		$	65,223		$	51,636		$	9,858		$	61,494		6.1	%
Food and beverage	53,535			14,614			68,149			44,297			20,751			65,048			4.8	%
Other direct	4,476			3,957			8,433			5,466			3,803			9,269			-9.0	%
Other indirect	80,211			17,853			98,064			68,420			24,479			92,898			5.6	%
Management fees, includes base and incentive fees	21,847			1,869			23,716			17,924			2,280			20,204			17.4	%
Total hotel operating expenses	216,410			47,175			263,585			187,743			61,171			248,913			5.9	%
Property taxes, insurance, and other	18,453			1,289			19,742			16,163			2,214			18,377			7.4	%
HOTEL EBITDA	114,535			8,721			123,256			103,287			10,279			113,566			8.5	%
Hotel EBITDA Margin	32.78		%	15.25		%	30.32		%	33.62		%	13.95		%	29.82		%	0.50	%

Minority interest in earnings of consolidated joint ventures	6,954						6,954			6,531						6,531			6.5	%
HOTEL EBITDA
excluding minority interest in joint ventures	$	107,581		$	8,721		$	116,302		$	96,756		$	10,279		$	107,035		8.7	%

NOTES:

(1) The above comparable information assumes the twelve hotel properties owned and included in the Company’s operations at December 31, 2015 were owned as of the beginning of each of the periods presented.

(2) All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition. Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates

(b) Lease expense was adjusted to reflect additional expense from a below market rate ground lease on the Bardessono Hotel and Spa

(3) See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

FOOTNOTES:

(A) These amounts include immaterial comparability adjustments to conform the Company’s 2014 actual amounts to the industry’s Uniform System of Accounts for the Lodging Industry Eleventh Revised Edition, which became effective January 1, 2015.

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

SELECTED FINANCIAL AND OPERATING INFORMATION BY PROPERTY

(in thousands, except operating information)

(unaudited)

THE FOLLOWING TABLE PRESENTS SELECTED FINANCIAL AND OPERATING INFORMATION BY PROPERTY FOR THE TWELVE PROPERTIES INCLUDED IN THE ASHFORD PRIME PORTFOLIO:

	Three Months Ended December 31, 2015
	Actual			Pre-acquisition		Comparable			Actual			Pre-acquisition (A)				Comparable			Comparable
	2015			2015		2015			2014			2014				2014			% Variance

CAPITAL HILTON WASHINGTON DC
Selected Financial Information:
Rooms Revenue	$	8,738		$	—	$	8,738		$	8,795		$		(64	)	$	8,731		0.08	%
Total Hotel Revenue	$	12,440		$	—	$	12,440		$	12,272		$	299			$	12,571		-1.04	%
Hotel EBITDA	$	3,033		$	—	$	3,033		$	3,549		$	—			$	3,549		-14.54	%
Hotel EBITDA Margin	24.38		%	—		24.38		%	28.92		%	—				28.23		%	-3.85	%
Selected Operating Information:
RevPAR	$	172.70		$	—	$	172.70		$	174.77		$	(1.28		)	$	173.49		-0.46	%
Occupancy	79.48		%	—		79.48		%	81.58		%	—				81.58		%	-2.57	%
ADR	$	217.29		$	—	$	217.29		$	214.25		$	(1.57		)	$	212.68		2.17	%

LA JOLLA HILTON TORREY PINES
Selected Financial Information:
Rooms Revenue	$	5,072		$	—	$	5,072		$	4,734		$		(3	)	$	4,731		7.21	%
Total Hotel Revenue	$	9,266		$	—	$	9,266		$	8,546		$	215			$	8,761		5.76	%
Hotel EBITDA	$	2,321		$	—	$	2,321		$	2,161		$	—			$	2,161		7.40	%
Hotel EBITDA Margin	25.05		%	—		25.05		%	25.29		%	—				24.67		%	0.38	%
Selected Operating Information:
RevPAR	$	139.93		$	—	$	139.93		$	130.60		$	(0.09		)	$	130.51		7.22	%
Occupancy	83.68		%	—		83.68		%	84.67		%	—				84.67		%	-1.17	%
ADR	$	167.22		$	—	$	167.22		$	154.24		$	(0.11		)	$	154.13		8.49	%

CHICAGO SOFITEL WATER TOWER
Selected Financial Information:
Rooms Revenue	$	6,605		$	—	$	6,605		$	7,144		$	—			$	7,144		-7.54	%
Total Hotel Revenue	$	9,350		$	—	$	9,350		$	10,303		$	—			$	10,303		-9.25	%
Hotel EBITDA	$	2,093		$	—	$	2,093		$	2,899		$	—			$	2,899		-27.80	%
Hotel EBITDA Margin	22.39		%	—		22.39		%	28.14		%	—				28.14		%	-5.75	%
Selected Operating Information:
RevPAR	$	173.00		$	—	$	173.00		$	187.11		$	—			$	187.11		-7.54	%
Occupancy	77.84		%	—		77.84		%	78.81		%	—				78.81		%	-1.22	%
ADR	$	222.24		$	—	$	222.24		$	237.43		$	—			$	237.43		-6.40	%

BARDESSONO HOTEL AND SPA
Selected Financial Information:
Rooms Revenue	$	3,290		$	—	$	3,290		$	—		$	3,107			$	3,107		5.89	%
Total Hotel Revenue	$	4,740		$	—	$	4,740		$	—		$	4,390			$	4,390		7.97	%
Hotel EBITDA	$	1,193		$	—	$	1,193		$	—		$	902			$	902		32.23	%
Hotel EBITDA Margin	25.17		%	—		25.17		%	—			20.55			%	20.55		%	4.62	%
Selected Operating Information:
RevPAR	$	576.80		$	—	$	576.80		$	—		$	544.79			$	544.79		5.88	%
Occupancy	77.98		%	—		77.98		%	—			77.28			%	77.28		%	0.91	%
ADR	$	739.68		$	—	$	739.68		$	—		$	704.96			$	704.96		4.92	%

KEY WEST PIER HOUSE RESORT
Selected Financial Information:
Rooms Revenue	$	4,581		$	—	$	4,581		$	4,203		$	—			$	4,203		8.99	%
Total Hotel Revenue	$	5,691		$	—	$	5,691		$	5,365		$	—			$	5,365		6.08	%
Hotel EBITDA	$	2,384		$	—	$	2,384		$	2,234		$	—			$	2,234		6.71	%
Hotel EBITDA Margin	41.89		%	—		41.89		%	41.64		%	—				41.64		%	0.25	%
Selected Operating Information:
RevPAR	$	350.64		$	—	$	350.64		$	321.70		$	—			$	321.70		9.00	%
Occupancy	89.11		%	—		89.11		%	86.28		%	—				86.28		%	3.27	%
ADR	$	393.50		$	—	$	393.50		$	372.84		$	—			$	372.84		5.54	%

PHILADELPHIA COURTYARD DOWNTOWN
Selected Financial Information:
Rooms Revenue	$	6,731		$	—	$	6,731		$	6,355		$	—			$	6,355		5.92	%
Total Hotel Revenue	$	8,310		$	—	$	8,310		$	7,867		$	77			$	7,944		4.61	%
Hotel EBITDA	$	3,252		$	—	$	3,252		$	2,966		$	—			$	2,966		9.64	%
Hotel EBITDA Margin	39.13		%	—		39.13		%	37.70		%	—				37.34		%	1.80	%
Selected Operating Information:
RevPAR	$	146.62		$	—	$	146.62		$	138.42		$	—			$	138.42		5.92	%
Occupancy	80.63		%	—		80.63		%	79.89		%	—				79.89		%	0.93	%
ADR	$	181.85		$	—	$	181.85		$	173.27		$	—			$	173.27		4.95	%

PLANO MARRIOTT LEGACY TOWN CENTER
Selected Financial Information:
Rooms Revenue	$	4,811		$	—	$	4,811		$	4,404		$	—			$	4,404		9.24	%
Total Hotel Revenue	$	7,858		$	—	$	7,858		$	7,500		$	180			$	7,680		2.32	%
Hotel EBITDA	$	2,568		$	—	$	2,568		$	2,556		$	—			$	2,556		0.47	%
Hotel EBITDA Margin	32.68		%	—		32.68		%	34.08		%	—				33.28		%	-0.60	%
Selected Operating Information:
RevPAR	$	129.44		$	—	$	129.44		$	118.49		$	—			$	118.49		9.24	%
Occupancy	66.92		%	—		66.92		%	66.22		%	—				66.22		%	1.06	%
ADR	$	193.43		$	—	$	193.43		$	178.93		$	—			$	178.93		8.11	%

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

SELECTED FINANCIAL AND OPERATING INFORMATION BY PROPERTY

(in thousands, except operating information)

(unaudited)

Continued

THE FOLLOWING TABLE PRESENTS SELECTED FINANCIAL AND OPERATING INFORMATION BY PROPERTY FOR THE TWELVE PROPERTIES INCLUDED IN THE ASHFORD PRIME PORTFOLIO:

	Three Months Ended December 31, 2015
	Actual			Pre-acquisition			Comparable			Actual			Pre-acquisition (A)			Comparable			Comparable
	2015			2015			2015			2014			2014			2014			% Variance

SAN FRANCISCO COURTYARD DOWNTOWN
Selected Financial Information:
Rooms Revenue	$	8,252		$	—		$	8,252		$	8,355		$	—		$	8,355		-1.23	%
Total Hotel Revenue	$	9,653		$	—		$	9,653		$	9,698		$	62		$	9,760		-1.10	%
Hotel EBITDA	$	3,013		$	—		$	3,013		$	3,131		$	—		$	3,131		-3.77	%
Hotel EBITDA Margin	31.21		%	—			31.21		%	32.29		%	—			32.08		%	-0.87	%
Selected Operating Information:
RevPAR	$	221.48		$	—		$	221.48		$	224.22		$	—		$	224.22		-1.22	%
Occupancy	86.25		%	—			86.25		%	89.55		%	—			89.55		%	-3.68	%
ADR	$	256.79		$	—		$	256.79		$	250.39		$	—		$	250.39		2.55	%

SEATTLE COURTYARD DOWNTOWN
Selected Financial Information:
Rooms Revenue	$	2,807		$	—		$	2,807		$	2,690		$	—		$	2,690		4.35	%
Total Hotel Revenue	$	3,382		$	—		$	3,382		$	3,181		$	7		$	3,188		6.09	%
Hotel EBITDA	$	1,328		$	—		$	1,328		$	1,259		$	—		$	1,259		5.48	%
Hotel EBITDA Margin	39.27		%	—			39.27		%	39.58		%	—			39.49		%	-0.23	%
Selected Operating Information:
RevPAR	$	122.07		$	—		$	122.07		$	116.96		$	—		$	116.96		4.37	%
Occupancy	74.76		%	—			74.76		%	74.26		%	—			74.26		%	0.68	%
ADR	$	163.27		$	—		$	163.27		$	157.51		$	—		$	157.51		3.66	%

SEATTLE MARRIOTT WATERFRONT
Selected Financial Information:
Rooms Revenue	$	5,550		$	—		$	5,550		$	5,050		$	—		$	5,050		9.90	%
Total Hotel Revenue	$	8,033		$	—		$	8,033		$	6,969		$	116		$	7,085		13.38	%
Hotel EBITDA	$	2,919		$	—		$	2,919		$	2,521		$	—		$	2,521		15.79	%
Hotel EBITDA Margin	36.34		%	—			36.34		%	36.17		%	—			35.58		%	0.76	%
Selected Operating Information:
RevPAR	$	168.50		$	—		$	168.50		$	153.33		$	—		$	153.33		9.89	%
Occupancy	76.52		%	—			76.52		%	72.33		%	—			72.33		%	5.78	%
ADR	$	220.21		$	—		$	220.21		$	211.98		$	—		$	211.98		3.88	%

ST. THOMAS RITZ-CARLTON
Selected Financial Information:
Rooms Revenue	$	2,642		$	3,765		$	6,407		$	—		$	5,449		$	5,449		17.58	%
Total Hotel Revenue	$	3,884		$	7,706		$	11,590		$	—		$	9,729		$	9,729		19.13	%
Hotel EBITDA	$	1,489		$	(1	)	$	1,488		$	—		$	378		$	378		293.62	%
Hotel EBITDA Margin	38.34		%	-0.01		%	12.84		%	—			3.89		%	3.89		%	8.95	%
Selected Operating Information:
RevPAR	$	863.30		$	278.91		$	386.89		$	—		$	329.02		$	329.02		17.59	%
Occupancy	73.17		%	72.02		%	72.23		%	—			58.05		%	58.05		%	24.44	%
ADR	$	1,179.85		$	387.25		$	535.61		$	—		$	566.80		$	566.80		-5.50	%

TAMPA RENAISSANCE
Selected Financial Information:
Rooms Revenue	$	3,495		$	—		$	3,495		$	3,282		$	—		$	3,282		6.49	%
Total Hotel Revenue	$	5,517		$	—		$	5,517		$	5,026		$	132		$	5,158		6.96	%
Hotel EBITDA	$	1,436		$	—		$	1,436		$	1,251		$	—		$	1,251		14.79	%
Hotel EBITDA Margin	26.03		%	—			26.03		%	24.89		%	—			24.25		%	1.78	%
Selected Operating Information:
RevPAR	$	129.65		$	—		$	129.65		$	121.74		$	—		$	121.74		6.50	%
Occupancy	74.55		%	—			74.55		%	77.17		%	—			77.17		%	-3.40	%
ADR	$	173.90		$	—		$	173.90		$	157.75		$	—		$	157.75		10.24	%

PRIME PROPERTIES TOTAL (12)
Selected Financial Information:
Rooms Revenue	$	62,575		$	3,765		$	66,340		$	55,011		$	8,488		$	63,499		4.47	%
Total Hotel Revenue	$	88,124		$	7,706		$	95,830		$	76,727		$	15,208		$	91,935		4.24	%
Hotel EBITDA	$	27,029		$	(1	)	$	27,028		$	24,527		$	1,280		$	25,807		4.73	%
Hotel EBITDA Margin	30.67		%	-0.01		%	28.20		%	31.52		%	8.42		%	28.07		%	0.13	%
Selected Operating Information:
RevPAR	$	178.74		$	278.91		$	182.46		$	161.30		$	381.27		$	174.78		4.39	%
Occupancy	78.59		%	72.02		%	78.34		%	79.01		%	62.98		%	78.03		%	0.40	%
ADR	$	227.45		$	387.25		$	232.91		$	204.15		$	605.41		$	224.00		3.98	%

NOTES:

(2) All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates

(b) Lease expense was adjusted to reflect additional expense from a below market rate ground lease on the Bardessono Hotel and Spa

(3) See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

FOOTNOTES:

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

SELECTED FINANCIAL AND OPERATING INFORMATION BY PROPERTY

(in thousands, except operating information)

(unaudited)

THE FOLLOWING TABLE PRESENTS SELECTED FINANCIAL AND OPERATING INFORMATION BY PROPERTY FOR THE TWELVE PROPERTIES INCLUDED IN THE ASHFORD PRIME PORTFOLIO:

	Year Ended December 31,
	Actual			Pre-acquisition			Comparable			Actual			Pre-acquisition (A)			Comparable			Comparable
	2015			2015			2015			2014			2014			2014			% Variance

CAPITAL HILTON WASHINGTON DC
Selected Financial Information:
Rooms Revenue	$	38,045		$	—		$	38,045		$	37,060		$	(239	)	$	36,820		3.33	%
Total Revenue	$	54,423		$	—		$	54,423		$	50,920		$	1,207		$	52,127		4.40	%
Hotel EBITDA	$	15,297		$	—		$	15,297		$	15,183		$	—		$	15,183		0.75	%
Hotel EBITDA Margin	28.11		%	—			28.11		%	29.82		%	—			29.13		%	-1.02	%
Selected Operating Information:
RevPAR	$	189.88		$	—		$	189.88		$	186.11		$	(1.20	)	$	184.91		2.69	%
Occupancy	85.43		%	—			85.43		%	84.76		%	—			84.76		%	0.79	%
ADR	$	222.26		$	—		$	222.26		$	219.56		$	(1.42	)	$	218.15		1.88	%

LA JOLLA HILTON TORREY PINES
Selected Financial Information:
Rooms Revenue	$	23,463		$	—		$	23,463		$	21,673		$	(99	)	$	21,574		8.76	%
Total Revenue	$	40,541		$	—		$	40,541		$	36,393		$	794		$	37,187		9.02	%
Hotel EBITDA	$	12,521		$	—		$	12,521		$	10,942		$	—		$	10,942		14.43	%
Hotel EBITDA Margin	30.88		%	—			30.88		%	30.07		%	—			29.42		%	1.46	%
Selected Operating Information:
RevPAR	$	163.15		$	—		$	163.15		$	150.71		$	(0.69	)	$	150.02		8.75	%
Occupancy	85.35		%	—			85.35		%	84.50		%	—			84.50		%	1.00	%
ADR	$	191.16		$	—		$	191.16		$	178.35		$	(0.81	)	$	177.54		7.67	%

CHICAGO SOFITEL WATER TOWER
Selected Financial Information:
Rooms Revenue	$	26,980		$	—		$	26,980		$	25,534		$	1,834		$	27,368		-1.42	%
Total Revenue	$	37,322		$	—		$	37,322		$	36,635		$	3,130		$	39,765		-6.14	%
Hotel EBITDA	$	8,360		$	—		$	8,360		$	11,334		$	(428	)	$	10,906		-23.34	%
Hotel EBITDA Margin	22.40		%	—			22.40		%	30.94		%	-13.67		%	27.43		%	-5.03	%
Selected Operating Information:
RevPAR	$	178.11		$	—		$	178.11		$	197.84		$	81.87		$	180.68		-1.42	%
Occupancy	80.03		%	—			80.03		%	84.21		%	58.81		%	80.45		%	-0.53	%
ADR	$	222.55		$	—		$	222.55		$	234.93		$	139.20		$	224.57		-0.90	%

BARDESSONO HOTEL AND SPA
Selected Financial Information:
Rooms Revenue	$	6,855		$	5,914		$	12,769		$	—		$	12,124		$	12,124		5.32	%
Total Revenue	$	9,684		$	8,806		$	18,490		$	—		$	17,212		$	17,212		7.43	%
Hotel EBITDA	$	2,791		$	1,054		$	3,845		$	—		$	3,733		$	3,733		3.00	%
Hotel EBITDA Margin	28.82		%	11.97		%	20.80		%	—			21.69		%	21.69		%	-0.89	%
Selected Operating Information:
RevPAR	$	628.17		$	504.69		$	564.23		$	—		$	535.76		$	535.76		5.31	%
Occupancy	79.69		%	77.82		%	78.72		%	—			79.09		%	79.09		%	-0.46	%
ADR	$	788.25		$	648.53		$	716.73		$	—		$	677.44		$	677.44		5.80	%

KEY WEST PIER HOUSE RESORT
Selected Financial Information:
Rooms Revenue	$	18,549		$	—		$	18,549		$	13,877		$	3,416		$	17,293		7.26	%
Total Revenue	$	23,192		$	—		$	23,192		$	17,669		$	4,260		$	21,929		5.76	%
Hotel EBITDA	$	9,728		$	—		$	9,728		$	6,701		$	1,938		$	8,639		12.61	%
Hotel EBITDA Margin	41.95		%	—			41.95		%	37.93		%	45.49		%	39.40		%	2.55	%
Selected Operating Information:
RevPAR	$	357.88		$	—		$	357.88		$	319.37		$	407.75		$	333.66		7.26	%
Occupancy	90.15		%	—			90.15		%	85.18		%	93.63		%	86.55		%	4.16	%
ADR	$	396.99		$	—		$	396.99		$	374.92		$	435.51		$	385.52		2.98	%

PHILADELPHIA COURTYARD DOWNTOWN
Selected Financial Information:
Rooms Revenue	$	26,461		$	—		$	26,461		$	23,997		$	—		$	23,997		10.27	%
Total Revenue	$	32,044		$	—		$	32,044		$	29,379		$	273		$	29,652		8.07	%
Hotel EBITDA	$	12,518		$	—		$	12,518		$	11,312		$	(1	)	$	11,311		10.67	%
Hotel EBITDA Margin	39.07		%	—			39.07		%	38.50		%	—			38.15		%	0.92	%
Selected Operating Information:
RevPAR	$	145.28		$	—		$	145.28		$	131.81		$	—		$	131.81		10.22	%
Occupancy	82.62		%	—			82.62		%	79.40		%	—			79.40		%	4.05	%
ADR	$	175.85		$	—		$	175.85		$	166.01		$	—		$	166.01		5.93	%

PLANO MARRIOTT LEGACY TOWN CENTER
Selected Financial Information:
Rooms Revenue	$	20,263		$	—		$	20,263		$	18,222		$	—		$	18,222		11.20	%
Total Revenue	$	32,033		$	—		$	32,033		$	28,879		$	594		$	29,473		8.69	%
Hotel EBITDA	$	11,087		$	—		$	11,087		$	9,876		$	—		$	9,876		12.26	%
Hotel EBITDA Margin	34.61		%	—			34.61		%	34.20		%	—			33.51		%	1.10	%
Selected Operating Information:
RevPAR	$	137.41		$	—		$	137.41		$	123.57		$	—		$	123.57		11.20	%
Occupancy	71.03		%	—			71.03		%	69.12		%	—			69.12		%	2.76	%
ADR	$	193.45		$	—		$	193.45		$	178.78		$	—		$	178.78		8.21	%

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

SELECTED FINANCIAL AND OPERATING INFORMATION BY PROPERTY

(in thousands, except operating information)

(unaudited)

Continued

THE FOLLOWING TABLE PRESENTS SELECTED FINANCIAL AND OPERATING INFORMATION BY PROPERTY FOR THE TWELVE PROPERTIES INCLUDED IN THE ASHFORD PRIME PORTFOLIO:

	Year Ended December 31,
	Actual			Pre-acquisition			Comparable			Actual			Pre-acquisition (A)			Comparable			Comparable
	2015			2015			2015			2014			2014			2014			% Variance

SAN FRANCISCO COURTYARD DOWNTOWN
Selected Financial Information:
Rooms Revenue	$	35,988		$	—		$	35,988		$	33,984		$	—		$	33,984		5.90	%
Total Revenue	$	41,938		$	—		$	41,938		$	39,148		$	238		$	39,386		6.48	%
Hotel EBITDA	$	13,688		$	—		$	13,688		$	13,065		$	1		$	13,066		4.76	%
Hotel EBITDA Margin	32.64		%	—			32.64		%	33.37		%	—			33.17		%	-0.54	%
Selected Operating Information:
RevPAR	$	243.45		$	—		$	243.45		$	229.90		$	—		$	229.90		5.89	%
Occupancy	91.10		%	—			91.10		%	89.89		%	—			89.89		%	1.34	%
ADR	$	267.24		$	—		$	267.24		$	255.75		$	—		$	255.75		4.49	%

SEATTLE COURTYARD DOWNTOWN
Selected Financial Information:
Rooms Revenue	$	14,153		$	—		$	14,153		$	13,194		$	—		$	13,194		7.27	%
Total Revenue	$	16,259		$	—		$	16,259		$	15,339		$	36		$	15,375		5.75	%
Hotel EBITDA	$	6,561		$	—		$	6,561		$	6,209		$	—		$	6,209		5.67	%
Hotel EBITDA Margin	40.35		%	—			40.35		%	40.48		%	—			40.38		%	-0.03	%
Selected Operating Information:
RevPAR	$	155.10		$	—		$	155.10		$	144.59		$	—		$	144.59		7.27	%
Occupancy	79.39		%	—			79.39		%	80.35		%	—			80.35		%	-1.19	%
ADR	$	195.37		$	—		$	195.37		$	179.94		$	—		$	179.94		8.57	%

SEATTLE MARRIOTT WATERFRONT
Selected Financial Information:
Rooms Revenue	$	27,419		$	—		$	27,419		$	25,044		$	—		$	25,044		9.48	%
Total Revenue	$	36,144		$	—		$	36,144		$	32,103		$	399		$	32,502		11.21	%
Hotel EBITDA	$	14,640		$	—		$	14,640		$	13,016		$	—		$	13,016		12.48	%
Hotel EBITDA Margin	40.50		%	—			40.50		%	40.54		%	—			40.05		%	0.46	%
Selected Operating Information:
RevPAR	$	209.84		$	—		$	209.84		$	191.66		$	—		$	191.66		9.49	%
Occupancy	82.22		%	—			82.22		%	79.67		%	—			79.67		%	3.20	%
ADR	$	255.20		$	—		$	255.20		$	240.56		$	—		$	240.56		6.09	%

ST. THOMAS RITZ-CARLTON
Selected Financial Information:
Rooms Revenue	$	2,642		$	26,240		$	28,882		$	—		$	24,213		$	24,213		19.28	%
Total Revenue	$	3,884		$	48,379		$	52,263		$	—		$	45,033		$	45,033		16.05	%
Hotel EBITDA	$	1,489		$	7,667		$	9,156		$	—		$	5,036		$	5,036		81.80	%
Hotel EBITDA Margin	38.34		%	15.85		%	17.52		%	—			11.18		%	11.18		%	6.34	%
Selected Operating Information:
RevPAR	$	863.30		$	418.91		$	439.61		$	—		$	368.54		$	368.54		19.28	%
Occupancy	73.17		%	80.01		%	79.69		%	—			67.89		%	67.89		%	17.38	%
ADR	$	1,179.85		$	523.57		$	551.63		$	—		$	542.82		$	542.82		1.62	%

TAMPA RENAISSANCE
Selected Financial Information:
Rooms Revenue	$	14,625		$	—		$	14,625		$	13,910		$	—		$	13,910		5.14	%
Total Revenue	$	21,934		$	—		$	21,934		$	20,726		$	492		$	21,218		3.37	%
Hotel EBITDA	$	5,855		$	—		$	5,855		$	5,649		$	—		$	5,649		3.65	%
Hotel EBITDA Margin	26.69		%	—			26.69		%	27.26		%	—			26.62		%	0.07	%
Selected Operating Information:
RevPAR	$	136.75		$	—		$	136.75		$	130.07		$	—		$	130.07		5.14	%
Occupancy	77.96		%	—			77.96		%	80.38		%	—			80.38		%	-3.00	%
ADR	$	175.40		$	—		$	175.40		$	161.82		$	—		$	161.82		8.39	%

PRIME PROPERTIES TOTAL (12)
Selected Financial Information:
Rooms Revenue	$	255,443		$	32,154		$	287,597		$	226,495		$	41,250		$	267,745		7.41	%
Total Hotel Revenue	$	349,398		$	57,185		$	406,583		$	307,193		$	73,663		$	380,856		6.76	%
Hotel EBITDA	$	114,535		$	8,721		$	123,256		$	103,287		$	10,279		$	113,566		8.53	%
Hotel EBITDA Margin	32.78		%	15.25		%	30.31		%	33.62		%	13.95		%	29.82		%	0.50	%
Selected Operating Information:
RevPAR	$	186.76		$	432.43		$	199.43		$	171.37		$	346.29		$	185.83		7.32	%
Occupancy	82.32		%	79.67		%	82.19		%	81.62		%	70.12		%	80.67		%	1.88	%
ADR	$	226.87		$	542.81		$	242.66		$	209.96		$	493.85		$	230.36		5.34	%

NOTES:

(a) Management fee expense was adjusted to reflect current contractual rates

(b) Lease expense was adjusted to reflect additional expense from a below market rate ground lease on the Bardessono Hotel and Spa

(3) See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

FOOTNOTES:

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

HOTEL REVENUE & EBITDA FOR TRAILING TWELVE MONTHS

(dollars in thousands)

(unaudited)

THE FOLLOWING SEASONALITY TABLE REFLECTS THE TWELVE HOTELS INCLUDED IN THE COMPANY’S OPERATIONS AT DECEMBER 31, 2015:

	Actual			Pre-acquisition			Comparable			Actual			Pre-acquisition			Comparable			Actual			Pre-acquisition			Comparable			Actual			Pre-acquisition			Comparable
	2015			2015			2015			2015			2015			2015			2015			2015			2015			2015			2015			2015
	4th Quarter			4th Quarter			4th Quarter			3rd Quarter			3rd Quarter			3rd Quarter			2nd Quarter			2nd Quarter			2nd Quarter			1st Quarter			1st Quarter			1st Quarter

Total Hotel Revenue	$	88,124		$	7,706		$	95,830		$	90,725		$	10,597		$	101,322		$	92,800		$	18,719		$	111,519		$	77,749		$	20,163		$	97,912
Hotel EBITDA	$	27,029		$	(1	)	$	27,028		$	30,081		$	774		$	30,855		$	33,902		$	3,457		$	37,359		$	23,523		$	4,491		$	28,014
Hotel EBITDA Margin	30.67		%	-0.01		%	28.20		%	33.16		%	7.30		%	30.45		%	36.53		%	18.47		%	33.50		%	30.26		%	22.27		%	28.61		%

EBITDA % of Total TTM	23.6		%	0.0		%	21.9		%	26.3		%	8.9		%	25.0		%	29.6		%	39.6		%	30.3		%	20.5		%	51.5		%	22.7		%

JV Interests in EBITDA	$	1,339		$	—		$	1,339		$	1,427		$	—		$	1,427		$	2,513		$	—		$	2,513		$	1,675		$	—		$	1,675

	Actual			Pre-acquisition			Comparable
	2015			2015			2015
	TTM			TTM			TTM

Total Hotel Revenue	$	349,398		$	57,185		$	406,583
Hotel EBITDA	$	114,535		$	8,721		$	123,256
Hotel EBITDA Margin	32.78		%	15.25		%	30.32		%

EBITDA % of Total TTM	100.0		%	100.0		%	100.0		%

JV Interests in EBITDA	$	6,954		$	—		$	6,954

NOTES:

(2) All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates

(b) Lease expense was adjusted to reflect additional expense from a below market rate ground lease on the Bardessono Hotel and Spa

(3) See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

TOTAL ENTERPRISE VALUE

DECEMBER 31, 2015

(in thousands, except share price)

(unaudited)

	December 31,
	2015
End of quarter common shares outstanding	28,472
Partnership units outstanding (common stock equivalents)	4,375
Combined common shares and partnership units outstanding	32,847
Common stock price at quarter end	$	14.50
Market capitalization at quarter end	$	476,282
Series B convertible preferred stock	$	65,000
Debt on balance sheet date	$	840,232
Joint venture partner’s share of consolidated debt	$	(48,840	)
Net working capital (see below)	$	(168,647	)
Total enterprise value (TEV)	$	1,164,027

Ashford Inc. Investment:
Common stock owned at end of quarter	195
Common stock price at quarter end	$	53.25
Market value of Ashford Inc. investment	$	10,377

Cash and cash equivalents	$	101,623
Restricted cash	31,733
Accounts receivable, net	12,594
Prepaid expenses	2,964
Investment in AIM REHE, LP	48,365
Due from affiliates, net	(5,782		)
Due from third-party hotel managers, net	9,818
Market value of Ashford Inc. investment	10,377
Total current assets	$	211,693

Accounts payable, net & accrued expenses	$	39,607
Dividends payable	3,439
Total current liabilities	$	43,046

Net working capital*	$	168,647

* Includes the Company’s pro rata share of net working capital in joint ventures.

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

Anticipated Capital Expenditures Calendar (a)

2015

Proposed 2016

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Rooms

Actual

Estimated

Courtyard Seattle

250

Hilton La Jolla Torrey Pines

394

Renaissance Tampa

293

Courtyard San Francisco

405

Marriott Seattle Waterfront

358

(a) Only hotels which have had or are expected to have significant capital expenditures that could result in displacement in 2015-2016 are included in this table.

Exhibit 1

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)

	Three Months Ended December 31, 2015
	Capital Hilton Washington DC			La Jolla Hilton Torrey Pines			Chicago Sofitel Water Tower			Bardessono Hotel & Spa		Key West Pier House Resort			Philadelphia Courtyard Downtown			Plano Marriott Legacy Town Center		San Francisco Courtyard Downtown			Seattle Courtyard Downtown			Seattle Marriott Waterfront			St. Thomas Ritz- Carlton			Tampa Renaissance		Hotel Total			Corporate / Allocated			Ashford Hospitality Prime, Inc.

Net income (loss)	$	1,312		$	1,002		$	(223	)	$	461	$	1,757		$	1,286		$	1,486	$	2,435		$	779		$	1,797		$	1,032		$	564	$	13,688		$	(19,796	)	$	(6,108	)
Income from consolidated entities attributable to noncontrolling interest	(358		)	(274		)	—			—		—			—			—		—			—			—			—			—		(632		)	(714		)	(1,346		)
Net loss attributable to redeemable noncontrolling interests in operating partnership	—			—			—			—		—			—			—		—			—			—			—			—		—			1,064			1,064
Net income (loss) attributable to the Company	954			728			(223		)	461		1,757			1,286			1,486		2,435			779			1,797			1,032			564		13,056			(19,446		)	(6,390		)
Non-property adjustments	(21		)	2			1			—		—			—			—		—			(1		)	—			5			—		(14		)	14			—
Interest Income	—			(2		)	—			—		—			(1		)	—		(3		)	—			(2		)	(1		)	—		(9		)	(4		)	(13		)
Interest expense	—			—			516			—		—			505			—		—			—			—			104			—		1,125			7,904			9,029
Amortization of loan cost	—			—			176			—		—			8			—		—			—			—			10			—		194			546			740
Depreciation and amortization	1,562			1,499			1,584			578		662			1,448			1,035		578			533			976			114			871		11,440			—			11,440
Income tax expense (benefit)	69			(196		)	—			—		—			4			—		—			—			—			37			—		(86		)	(22		)	(108		)
Non-Hotel EBITDA ownership expense	113			16			39			154		(35		)	2			47		3			17			148			188			1		693			(693		)	—
(Income) loss from consolidated entities attributable to noncontrolling interest	356			274			—			—		—			—			—		—			—			—			—			—		630			(630		)	—
EBITDA including amounts attributable to consolidated noncontrolling interest	3,033			2,321			2,093			1,193		2,384			3,252			2,568		3,013			1,328			2,919			1,489			1,436		27,029			(12,331		)	14,698
Less: EBITDA adjustments attributable to consolidated noncontrolling interest	(360		)	(351		)	—			—		—			—			—		—			—			—			—			—		(711		)	(384		)	(1,095		)
Net income (loss) attributable to redeemable noncontrolling interest in operating partnership	—			—			—			—		—			—			—		—			—			—			—			—		—			(1,064		)	(1,064		)
EBITDA attributable to the Company and OP unitholders	$	2,673		$	1,970		$	2,093		$	1,193	$	2,384		$	3,252		$	2,568	$	3,013		$	1,328		$	2,919		$	1,301		$	1,436	$	26,318		$	(13,779	)	$	12,539

Pre-acquisition Hotel EBITDA	—			—			—			—		—			—			—		—			—			—			(1		)	—		(1		)
Comparable Hotel EBITDA	$	3,033		$	2,321		$	2,093		$	1,193	$	2,384		$	3,252		$	2,568	$	3,013		$	1,328		$	2,919		$	1,488		$	1,436	$	27,028

NOTES:

(2) All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates

(b) Lease expense was adjusted to reflect additional expense from a below market rate ground lease on the Bardessono Hotel and Spa

Exhibit 1

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)

	Three Months Ended December 31, 2014
	Capital Hilton Washington DC			La Jolla Hilton Torrey Pines			Chicago Sofitel Water Tower			Bardessono Hotel & Spa		Key West Pier House Resort		Philadelphia Courtyard Downtown			Plano Marriott Legacy Town Center			San Francisco Courtyard Downtown			Seattle Courtyard Downtown			Seattle Marriott Waterfront			St. Thomas Ritz- Carlton		Tampa Renaissance			Hotel Total			Corporate / Allocated			Ashford Hospitality Prime, Inc.

Net income (loss)	$	1,467		$	543		$	674		$	—	$	1,604	$	984		$	1,548		$	2,575		$	774		$	1,528		$	—	$	673		$	12,370		$	(13,295	)	$	(925	)
Income from consolidated entities attributable to noncontrolling interest	(394		)	(159		)	—			—		—		—			—			—			—			—			—		—			(553		)	(1,291		)	(1,844		)
Net loss attributable to redeemable noncontrolling interests in operating partnership	—			—			—			—		—		—			—			—			—			—			—		—			—			717			717
Net income (loss) attributable to the Company	1,073			384			674			—		1,604		984			1,548			2,575			774			1,528			—		673			11,817			(13,869		)	(2,052		)
Non-property adjustments	(12		)	1			(1		)	—		—		—			1			—			(11		)	1			—		(1		)	(22		)	22			—
Interest Income	2			(1		)	—			—		—		—			(1		)	(3		)	—			(2		)	—		(1		)	(6		)	(1		)	(7		)
Interest expense	—			—			502			—		—		512			—			—			—			—			—		—			1,014			8,358			9,372
Amortization of loan cost	—			—			166			—		—		8			—			—			—			—			—		—			174			326			500
Depreciation and amortization	1,813			1,474			1,557			—		622		1,463			1,002			558			496			986			—		579			10,550			—			10,550
Income tax expense	28			129			—			—		—		3			—			—			—			—			—		—			160			315			475
Non-Hotel EBITDA ownership expense	252			15			1			—		8		(4		)	6			1			—			8			—		1			288			(288		)	—
(Income) loss from consolidated entities attributable to noncontrolling interest	393			159			—			—		—		—			—			—			—			—			—		—			552			(552		)	—
EBITDA including amounts attributable to consolidated noncontrolling interest	3,549			2,161			2,899			—		2,234		2,966			2,556			3,131			1,259			2,521			—		1,251			24,527			(5,689		)	18,838
Less: EBITDA adjustments attributable to consolidated noncontrolling interest	(428		)	(345		)	—			—		—		—			—			—			—			—			—		—			(773		)	(419		)	(1,192		)
Net income (loss) attributable to redeemable noncontrolling interest in operating partnership	—			—			—			—		—		—			—			—			—			—			—		—			—			(717		)	(717		)
EBITDA attributable to the Company and OP unitholders	$	3,121		$	1,816		$	2,899		$	—	$	2,234	$	2,966		$	2,556		$	3,131		$	1,259		$	2,521		$	—	$	1,251		$	23,754		$	(6,825	)	$	16,929

Pre-acquisition Hotel EBITDA (A)	—			—			—			902		—		—			—			—			—			—			378		—			1,280
Comparable Hotel EBITDA	$	3,549		$	2,161		$	2,899		$	902	$	2,234	$	2,966		$	2,556		$	3,131		$	1,259		$	2,521		$	378	$	1,251		$	25,807

NOTES:

(2) All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates

(b) Lease expense was adjusted to reflect additional expense from a below market rate ground lease on the Bardessono Hotel and Spa

FOOTNOTES:

(A) Pre-acquisition Hotel EBITDA amounts include immaterial adjustments to conform the Company’s 2014 actual amounts to the industry’s Uniform System of Accounts

for the Lodging Industry Eleventh Revised Edition, which became effective January 1, 2015.

Exhibit 1

	ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
	RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA
	(in thousands)
	(unaudited)

	Year Ended December 31, 2015
	Capital Hilton Washington DC			La Jolla Hilton Torrey Pines			Chicago Sofitel Water Tower			Bardessono Hotel & Spa		Key West Pier House Resort			Philadelphia Courtyard Downtown			Plano Marriott Legacy Town Center			San Francisco Courtyard Downtown			Seattle Courtyard Downtown			Seattle Marriott Waterfront			St. Thomas Ritz- Carlton		Tampa Renaissance			Hotel Total			Corporate / Allocated			Ashford Hospitality Prime, Inc.

Net income (loss)	$	8,222		$	6,684		$	(714	)	$	1,358	$	7,124		$	4,691		$	6,854		$	11,415		$	4,453		$	10,441		$	1,032	$	2,820		$	64,380		$	(69,071	)	$	(4,691	)
(Income) loss from consolidated entities attributable to noncontrolling interest	(2,173		)	(1,766		)	—			—		—			—			—			—			—			—			—		—			(3,939		)	1,525			(2,414		)
Net loss attributable to redeemable noncontrolling interests in operating partnership	—			—			—			—		—			—			—			—			—			—			—		—			—			393			393
Net income (loss) attributable to the Company	6,049			4,918			(714		)	1,358		7,124			4,691			6,854			11,415			4,453			10,441			1,032		2,820			60,441			(67,153		)	(6,712		)
Non-property adjustments	(19		)	—			(1		)	1		—			—			—			1			(1		)	(2		)	4		1			(16		)	16			—
Interest Income	(1		)	(2		)	—			—		—			(2		)	(1		)	(13		)	—			(7		)	—		(2		)	(28		)	(6		)	(34		)
Interest expense	—			—			2,022			—		—			2,013			—			—			—			—			104		—			4,139			31,115			35,254
Amortization of loan cost	—			—			698			—		—			32			—			—			—			—			10		—			740			1,835			2,575
Depreciation and amortization	6,524			5,819			6,296			1,177		2,629			5,761			4,109			2,278			2,091			4,004			114		3,022			43,824			—			43,824
Income tax expense (benefit)	69			(25		)	—			—		—			16			—			—			—			—			37		—			97			166			263
Non-Hotel EBITDA ownership expense	502			45			59			255		(25		)	7			125			7			18			204			188		14			1,399			(1,399		)	—
(Income) loss from consolidated entities attributable to noncontrolling interest	2,173			1,766			—			—		—			—			—			—			—			—			—		—			3,939			(3,939		)	—
EBITDA including amounts attributable to consolidated noncontrolling interest	15,297			12,521			8,360			2,791		9,728			12,518			11,087			13,688			6,561			14,640			1,489		5,855			114,535			(39,365		)	75,170
Less: EBITDA adjustments attributable to consolidated noncontrolling interest	(1,513		)	(1,360		)	—			—		—			—			—			—			—			—			—		—			(2,873		)	(1,521		)	(4,394		)
Net income (loss) attributable to redeemable noncontrolling interest in operating partnership	—			—			—			—		—			—			—			—			—			—			—		—			—			(393		)	(393		)
EBITDA attributable to the Company and OP unitholders	$	13,784		$	11,161		$	8,360		$	2,791	$	9,728		$	12,518		$	11,087		$	13,688		$	6,561		$	14,640		$	1,489	$	5,855		$	111,662		$	(41,279	)	$	70,383

Pre-acquisition Hotel EBITDA	—			—			—			1,054		—			—			—			—			—			—			7,667		—			8,721

Comparable Hotel EBITDA	$	15,297		$	12,521		$	8,360		$	3,845	$	9,728		$	12,518		$	11,087		$	13,688		$	6,561		$	14,640		$	9,156	$	5,855		$	123,256


	ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
	HOTEL EBITDA BY LOAN POOL
	(in thousands)
	(unaudited)

GACC Sofitel - 1 hotel	$	—		$	—		$	8,360		$	—	$	—		$	—		$	—		$	—		$	—		$	—		$	—	$	—		$	8,360
Credit Agricole Pier House - 1 hotel	—			—			—			—		9,728			—			—			—			—			—			—		—			9,728
Wachovia Philly CY - 1 hotel	—			—			—			—		—			12,518			—			—			—			—			—		—			12,518
Wachovia 3 - 2 hotels	—			—			—			—		—			—			—			13,688			6,561			—			—		—			20,249
Wachovia 7 - 3 hotels	—			—			—			—		—			—			11,087			—			—			14,640			—		5,855			31,582
Column Financial - 1 hotel	—			—			—			3,845		—			—			—			—			—			—			—		—			3,845
Apollo - 1 hotel	—			—			—			—		—			—			—			—			—			—			9,156		—			9,156
Aareal - 2 hotels	15,297			12,521			—			—		—			—			—			—			—			—			—		—			27,818
Total	$	15,297		$	12,521		$	8,360		$	3,845	$	9,728		$	12,518		$	11,087		$	13,688		$	6,561		$	14,640		$	9,156	$	5,855		$	123,256

NOTES:

(1) The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2015 were owned as of the beginning of each of the periods presented.

(2) All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates

(b) Lease expense was adjusted to reflect additional expense from a below market rate ground lease on the Bardessono Hotel and Spa

Exhibit 1

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)

	Year Ended December 31, 2014
	Capital Hilton Washington DC			La Jolla Hilton Torrey Pines			Chicago Sofitel Water Tower			Bardessono Hotel & Spa		Key West Pier House Resort		Philadelphia Courtyard Downtown			Plano Marriott Legacy Town Center			San Francisco Courtyard Downtown			Seattle Courtyard Downtown			Seattle Marriott Waterfront			St. Thomas Ritz- Carlton		Tampa Renaissance			Hotel Total			Corporate / Allocated			Ashford Hospitality Prime, Inc.
																			��
Net income (loss)	$	6,855		$	4,454		$	3,877		$	—	$	4,682	$	3,489		$	5,828		$	10,857		$	4,138		$	9,092		$	—	$	3,398		$	56,670		$	(53,132	)	$	3,538
(Income) loss from consolidated entities attributable to noncontrolling interest	(1,819		)	(1,207		)	—			—		—		—			—			—			—			—			—		—			(3,026		)	1,923			(1,103		)
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership	—			—			—			—		—		—			—			—			—			—			—		—			—			(496		)	(496		)
Net income (loss) attributable to the Company	5,036			3,247			3,877			—		4,682		3,489			5,828			10,857			4,138			9,092			—		3,398			53,644			(51,705		)	1,939
Non-property adjustments	(11		)	(1		)	—			—		—		—			—			—			(11		)	—			—		—			(23		)	23			—
Interest Income	1			(2		)	—			—		—		(1		)	(3		)	(8		)	(1		)	(6		)	—		(3		)	(23		)	(3		)	(26		)
Interest expense	—			—			1,696			—		—		2,041			—			—			—			—			—		—			3,737			33,466			37,203
Amortization of loan cost	—			—			564			—		—		32			—			—			—			—			—		—			596			1,232			1,828
Depreciation and amortization	7,592			5,976			5,182			—		1,999		5,705			3,934			2,196			1,957			3,895			—		2,249			40,685			1			40,686
Income tax expense	51			483			—			—		—		15			—			—			—			—			—		—			549			548			1,097
Non-Hotel EBITDA ownership expense	695			32			15			—		20		31			117			20			126			35			—		5			1,096			(1,096		)	—
(Income) loss from consolidated entities attributable to noncontrolling interest	1,819			1,207			—			—		—		—			—			—			—			—			—		—			3,026			(3,026		)	—
EBITDA including amounts attributable to consolidated noncontrolling interest	15,183			10,942			11,334			—		6,701		11,312			9,876			13,065			6,209			13,016			—		5,649			103,287			(20,560		)	82,727
Less: EBITDA adjustments attributable to consolidated noncontrolling interest	(1,794		)	(1,400		)	—			—		—		—			—			—			—			—			—		—			(3,194		)	(1,842		)	(5,036		)
Net income (loss) attributable to redeemable noncontrolling interest in operating partnership	—			—			—			—		—		—			—			—			—			—			—		—			—			496			496
EBITDA attributable to the Company and OP unitholders	$	13,389		$	9,542		$	11,334		$	—	$	6,701	$	11,312		$	9,876		$	13,065		$	6,209		$	13,016		$	—	$	5,649		$	100,093		$	(21,906	)	$	78,187

Pre-acquisition Hotel EBITDA (A)	—			—			(428		)	3,733		1,938		(1		)	—			1			—			—			5,036		—			10,279

Comparable Hotel EBITDA	$	15,183		$	10,942		$	10,906		$	3,733	$	8,639	$	11,311		$	9,876		$	13,066		$	6,209		$	13,016		$	5,036	$	5,649		$	113,566

NOTES:
(1)	The above comparable information assumes the twelve hotel properties owned and included in the Company’s operations at December 31, 2015 were owned as of the beginning of each of the periods presented.
(2)	All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.
	Adjustments have been made to the pre-acquisition results as indicated below:
	(a) Management fee expense was adjusted to reflect current contractual rates
	(b) Lease expense was adjusted to reflect additional expense from a below market rate ground lease on the Bardessono Hotel and Spa

FOOTNOTES:
(A)	Pre-acquisition Hotel EBITDA amounts include immaterial adjustments to conform the Company’s 2014 actual amounts to the industry’s Uniform System of Accounts
	for the Lodging Industry Eleventh Revised Edition, which became effective January 1, 2015.

Exhibit 1

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME TO HOTEL EBITDA

(in thousands)

(unaudited)

	2015			2015			2015			2015			2015
	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter			TTM

Net income	$	11,356		$	22,022		$	17,314		$	13,688		$	64,380
Income from consolidated entities attributable to noncontrolling interest	(830		)	(1,778		)	(699		)	(632		)	(3,939		)
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership	—			—			—			—			—
Net income attributable to the Company	10,526			20,244			16,615			13,056			60,441
Non-property adjustments	(1		)	(1		)	—			(14		)	(16		)
Interest income	(4		)	(4		)	(11		)	(9		)	(28		)
Interest expense	993			1,005			1,016			1,125			4,139
Amortization of loan cost	181			182			183			194			740
Depreciation and amortization	10,517			10,559			11,308			11,440			43,824
Income tax expense (benefit)	71			102			10			(86		)	97
Non-Hotel EBITDA ownership expense	409			36			261			693			1,399
Income from consolidated entities attributable to noncontrolling interest	831			1,779			699			630			3,939
Hotel EBITDA including amounts attributable to consolidated noncontrolling interest	23,523			33,902			30,081			27,029			114,535

Pre-acquisition Hotel EBITDA	4,491			3,457			774			(1		)	8,721
Comparable Hotel EBITDA	$	28,014		$	37,359		$	30,855		$	27,028		$	123,256

NOTES:

(1)	The above comparable information assumes the twelve hotel properties owned and included in the Company’s operations at December 31, 2015 were owned as of the beginning of each of the periods presented.
(2)	All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.
	Adjustments have been made to the pre-acquisition results as indicated below:
	(a) Management fee expense was adjusted to reflect current contractual rates
	(b) Lease expense was adjusted to reflect additional expense from a below market rate ground lease on the Bardessono Hotel and Spa

Braemar Hotels & Resorts (BHR) 8-KResults of Operations and Financial Condition