EX-99.2 3 sho-20240503xex99d2.htm EX-99.2

Exhibit 99.2


Supplemental Financial Information For the quarter ended March 31, 2024 May 6, 2024

Supplemental Financial Information
May 6, 2024

Table of Contents


Corporate Profile And Disclosures Regarding Non-GAAP Financial Measures								2
Comparable Corporate Financial Information								6
Capitalization								12
Property-Level Data And Operating Statistics								15
Property-Level Revenues, Adjusted EBITDAre & Adjusted EBITDAre Margins								19


	Supplemental Financial Information May 6, 2024

CORPORATE PROFILE AND DISCLOSURES
REGARDING NON-GAAP FINANCIAL MEASURES


CORPORATE PROFILE AND DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES								Page 2


	Supplemental Financial Information May 6, 2024

About Sunstone

Sunstone Hotel Investors, Inc. (the “Company,” “we,” and “our”) (NYSE: SHO) is a lodging real estate investment trust (“REIT”) that as of May 6, 2024 owns 15 hotels comprised of 7,307 rooms, the majority of which are operated under nationally recognized brands. Sunstone’s strategy is to create long-term stakeholder value through the acquisition, active ownership and disposition of well-located hotel and resort real estate.

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 Headquarters
15 Enterprise, Suite 200
Aliso Viejo, CA 92656
(949) 330-4000

Company Contacts
Bryan Giglia
Chief Executive Officer
(949) 382-3036

Aaron Reyes
Chief Financial Officer
(949) 382-3018


CORPORATE PROFILE AND DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES								Page 3


	Supplemental Financial Information May 6, 2024

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 (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 margins. 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 net income (loss), 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, 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 as measures in determining the value of hotel acquisitions and dispositions.

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, any real estate impairment loss and any gain or loss on sale of real estate assets, all of which are based on historical cost accounting and may be of lesser significance in evaluating our current performance. Our presentation of FFO attributable to common stockholders conforms to the Nareit 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 than we do.

We also present Adjusted FFO attributable to common stockholders when evaluating our operating performance because we believe that the exclusion of certain additional items described below provides useful supplemental information to investors regarding our ongoing operating performance and may facilitate comparisons of operating performance between periods and our peer companies.


CORPORATE PROFILE AND DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES								Page 4


	Supplemental Financial Information May 6, 2024

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 or Adjusted FFO attributable to common stockholders:

●

Amortization of deferred stock compensation: we exclude the noncash expense incurred with the amortization of deferred stock compensation as this expense is based on historical stock prices at the date of grant to our corporate employees and does not reflect the underlying performance of our hotels.

●

Amortization of contract intangibles: we exclude the noncash amortization of any favorable or unfavorable contract intangibles recorded in conjunction with our hotel acquisitions. We exclude the noncash amortization of contract intangibles because it is based on historical cost accounting 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.

●

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; the write-off of development costs associated with abandoned projects; property-level restructuring, severance, pre-opening, and management transition costs; debt resolution costs; lease terminations; property insurance restoration proceeds or uninsured losses; and other nonrecurring identified adjustments.

In addition, to derive Adjusted EBITDAre, we exclude the amortization of our right-of-use assets and related lease obligations as these expenses are based on historical cost accounting and do not reflect the actual rent amounts due to the respective lessors or the underlying performance of our hotels. We also exclude the effect of gains and losses on the disposition of undepreciated assets because we believe that including them in Adjusted EBITDAre 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 as we believe that these items are not reflective of our ongoing finance costs. Additionally, we exclude the real estate amortization of our right-of-use assets and related lease obligations, which includes the amortization of our operating lease intangibles (with the exception of our corporate operating lease), as these expenses are based on historical cost accounting and do not reflect the actual rent amounts due to the respective lessors or the underlying performance of our hotels. We also exclude preferred stock redemption charges, changes to deferred tax assets, liabilities 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.

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, Adjusted EBITDAre, FFO attributable to common stockholders, Adjusted FFO attributable to common stockholders, hotel Adjusted EBITDAre and hotel Adjusted EBITDAre margins are set forth in the following pages of this supplemental package.


CORPORATE PROFILE AND DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES								Page 5


	Supplemental Financial Information May 6, 2024

COMPARABLE CORPORATE FINANCIAL INFORMATION


COMPARABLE CORPORATE FINANCIAL INFORMATION								Page 6


	Supplemental Financial Information May 6, 2024

Comparable Consolidated Statements of Operations

Q1 2024 – Q2 2023, Trailing 12 Months


	Quarter Ended (1)								Trailing 12 Months (1)
(Unaudited and in thousands, except per share data)	March 31,		December 31,		September 30,		June 30,		Ended
	2024		2023		2023		2023		March 31, 2024
Revenues
Room	$	135,815	$	127,038	$	134,428	$	149,923	$	547,204
Food and beverage		61,339		61,284		56,835		70,921		250,379
Other operating		20,012		19,772		22,398		21,728		83,910
Total revenues		217,166		208,094		213,661		242,572		881,493

Operating Expenses
Room		35,551		33,388		33,844		35,566		138,349
Food and beverage		44,315		43,907		42,725		46,897		177,844
Other expenses		83,483		81,076		82,895		83,556		331,010
Corporate overhead		7,518		7,421		7,127		8,396		30,462
Depreciation and amortization		29,040		29,135		29,134		28,038		115,347
Total operating expenses		199,907		194,927		195,725		202,453		793,012

Interest and other income		5,453		4,137		1,218		4,639		15,447
Interest expense		(11,010)		(16,768)		(11,894)		(9,223)		(48,895)
Income before income taxes		11,702		536		7,260		35,535		55,033
Income tax (provision) benefit, net		(93)		863		(602)		(803)		(635)
Net income	$	11,609	$	1,399	$	6,658	$	34,732	$	54,398

Comparable Hotel Adjusted EBITDAre (2)	$	52,295	$	49,855	$	54,009	$	76,458	$	232,617

Comparable Adjusted EBITDAre (3)	$	54,511	$	49,228	$	50,786	$	72,382	$	226,907

Comparable Adjusted FFO attributable to common stockholders (4)	$	37,518	$	33,532	$	33,424	$	54,712	$	159,186

Comparable Adjusted FFO attributable to common stockholders per diluted share (4)	$	0.18	$	0.17	$	0.16	$	0.27	$	0.78

*Footnotes on page 8


COMPARABLE CORPORATE FINANCIAL INFORMATION								Page 7


	Supplemental Financial Information May 6, 2024

Comparable Consolidated Statements of Operations

Footnotes

(1)	Excludes results for the Boston Park Plaza sold in October 2023. Also excludes the gain on sale of assets, net, extinguishment of debt, and income tax related to hotels either sold or disposed of in prior years.

(2)

Comparable Hotel Adjusted EBITDAre reconciliation for the first quarter of 2024 can be found later in this presentation. Additional details can be found in our earnings release, furnished in Exhibit 99.1 to our 8-K filed on May 6, 2024. Comparable Hotel Adjusted EBITDAre presented for the trailing 12 months ended March 31, 2024 includes all hotels owned by the Company as of March 31, 2024.

(3)	Comparable Adjusted EBITDAre reconciliation for the first quarter of 2024 can be found in the following pages and reflect the adjustments noted in Footnote 1 above.

(4)

Comparable Adjusted FFO attributable to common stockholders and Comparable Adjusted FFO attributable to common stockholders per diluted share reconciliations for the first quarter of 2024 can be found in the following pages and reflect the adjustments noted in Footnote 1 above, along with repurchases of the Company’s common stock totaling 0.3 million, 1.6 million and 2.1 million shares in the second, third and fourth quarters of 2023, respectively.


COMPARABLE CORPORATE FINANCIAL INFORMATION									Page 8


	Supplemental Financial Information May 6, 2024

Comparable Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre

Q1 2024 – Q2 2023, Trailing 12 Months


	Quarter Ended								Trailing 12 Months
	March 31,		December 31,		September 30,		June 30,		Ended
(In thousands)	2024		2023		2023		2023		March 31, 2024

Net income	$	13,035	$	126,985	$	15,558	$	43,078	$	198,656
Depreciation and amortization		29,040		29,135		33,188		32,397		123,760
Interest expense		11,010		16,768		11,894		9,223		48,895
Income tax (benefit) provision, net		(855)		2,799		602		803		3,349
Gain on sale of assets, net		(457)		(123,820)		—		—		(124,277)
EBITDAre		51,773		51,867		61,242		85,501		250,383

Amortization of deferred stock compensation		2,770		2,512		2,511		3,325		11,118
Amortization of right-of-use assets and obligations		(11)		(20)		(13)		(17)		(61)
Amortization of contract intangibles, net		—		—		(19)		(18)		(37)
Gain on extinguishment of debt		(21)		(8)		(9)		(12)		(50)
Hurricane-related insurance restoration proceeds		—		—		—		(3,722)		(3,722)
Property-level severance		—		297		—		—		297
Adjustments to EBITDAre, net		2,738		2,781		2,470		(444)		7,545

Adjusted EBITDAre		54,511		54,648		63,712		85,057		257,928
Sold hotel Adjusted EBITDAre (1)		—		(5,420)		(12,926)		(12,675)		(31,021)

Comparable Adjusted EBITDAre	$	54,511	$	49,228	$	50,786	$	72,382	$	226,907

*Footnotes on page 11


COMPARABLE CORPORATE FINANCIAL INFORMATION									Page 9


	Supplemental Financial Information May 6, 2024

Comparable Reconciliation of Net Income to FFO and Adjusted FFO Attributable to Common Stockholders

Q1 2024– Q2 2023, Trailing 12 Months


	Quarter Ended								Trailing 12 Months
	March 31,		December 31,		September 30,		June 30,		Ended
(In thousands, except per share data)	2024		2023		2023		2023		March 31, 2024

Net income	$	13,035	$	126,985	$	15,558	$	43,078	$	198,656
Preferred stock dividends		(3,683)		(3,226)		(3,226)		(3,768)		(13,903)
Real estate depreciation and amortization		28,755		28,979		33,025		32,240		122,999
Gain on sale of assets, net		(457)		(123,820)		—		—		(124,277)
FFO attributable to common stockholders		37,650		28,918		45,357		71,550		183,475

Amortization of deferred stock compensation		2,770		2,512		2,511		3,325		11,118
Real estate amortization of right-of-use assets and obligations		(122)		(134)		(124)		(128)		(508)
Amortization of contract intangibles, net		231		105		84		85		505
Noncash interest on derivatives, net		(2,042)		3,600		(1,469)		(3,711)		(3,622)
Gain on extinguishment of debt		(21)		(8)		(9)		(12)		(50)
Hurricane-related insurance restoration proceeds		—		—		—		(3,722)		(3,722)
Property-level severance		—		297		—		—		297
Income tax related to hotel disposition		(948)		3,662		—		—		2,714
Adjustments to FFO attributable to common stockholders, net		(132)		10,034		993		(4,163)		6,732

Adjusted FFO attributable to common stockholders		37,518		38,952		46,350		67,387		190,207
Sold hotel Adjusted FFO (1)		—		(5,420)		(12,926)		(12,675)		(31,021)

Comparable Adjusted FFO attributable to common stockholders	$	37,518	$	33,532	$	33,424	$	54,712	$	159,186

Comparable Adjusted FFO attributable to common stockholders per diluted share	$	0.18	$	0.17	$	0.16	$	0.27	$	0.78

Basic weighted average shares outstanding		202,631		203,612		205,570		206,181		204,499
Shares associated with unvested restricted stock awards		665		613		411		733		606
Diluted weighted average shares outstanding		203,296		204,225		205,981		206,914		205,104
Equity transactions (2)		—		(1,164)		(3,123)		(3,764)		(2,013)
Comparable diluted weighted average shares outstanding		203,296		203,061		202,858		203,150		203,091

*Footnotes on page 11


COMPARABLE CORPORATE FINANCIAL INFORMATION									Page 10


	Supplemental Financial Information May 6, 2024

Comparable Reconciliation of Net Income to EBITDAre, Adjusted EBITDAre,

FFO and Adjusted FFO Attributable to Common Stockholders

Q1 2024 – Q2 2023, Trailing 12 Months Footnotes

(1)	Sold hotel Adjusted EBITDAre and Adjusted FFO include results for the Boston Park Plaza sold in October 2023.

(2)	Equity transactions represent repurchases of the Company’s common stock totaling 0.3 million, 1.6 million and 2.1 million shares in the second, third and fourth quarters of 2023, respectively.


COMPARABLE CORPORATE FINANCIAL INFORMATION								Page 11


	Supplemental Financial Information May 6, 2024

CAPITALIZATION


CAPITALIZATION								Page 12


	Supplemental Financial Information May 6, 2024

Comparative Capitalization
Q1 2024 – Q1 2023


	March 31,			December 31,			September 30,			June 30,			March 31,
(In thousands, except per share data)	2024			2023			2023			2023			2023

Common Share Price & Dividends
At the end of the quarter	$	11.14		$	10.73		$	9.35		$	10.12		$	9.88
High during quarter ended	$	11.38		$	11.05		$	10.50		$	10.79		$	11.26
Low during quarter ended	$	10.42		$	9.04		$	8.67		$	9.39		$	8.87
Common dividends per share	$	0.07		$	0.13		$	0.07		$	0.05		$	0.05

Common Shares & Units
Common shares outstanding		203,674			203,480			205,623			207,185			207,410
Units outstanding		—			—			—			—			—
Total common shares and units outstanding		203,674			203,480			205,623			207,185			207,410

Capitalization
Market value of common equity	$	2,268,933		$	2,183,336		$	1,922,578		$	2,096,709		$	2,049,211
Liquidation value of preferred equity - Series G		66,250			66,250			66,250			66,250			66,250
Liquidation value of preferred equity - Series H		115,000			115,000			115,000			115,000			115,000
Liquidation value of preferred equity - Series I		100,000			100,000			100,000			100,000			100,000
Total debt		818,512			819,050			819,582			820,100			815,612
Total capitalization	$	3,368,695		$	3,283,636		$	3,023,410		$	3,198,059		$	3,146,073

Total debt to total capitalization		24.3	%		24.9	%		27.1	%		25.6	%		25.9	%
Total debt and preferred equity to total capitalization		32.6	%		33.5	%		36.4	%		34.4	%		34.9	%


CAPITALIZATION								Page 13


	Supplemental Financial Information May 6, 2024

Debt Summary Schedule


(In thousands)		Interest Rate /	Maturity			March 31, 2024
Debt	Collateral	Spread	Date (1)			Balance

Secured Mortgage Debt	JW Marriott New Orleans	4.15%	12/11/2024		$	73,512
Series A Senior Notes	Unsecured	4.69%	01/10/2026			65,000
Term Loan 3 (2)	Unsecured	6.77%	05/01/2026			225,000
Term Loan 1 (3)	Unsecured	5.25%	07/25/2027			175,000
Revolving Line of Credit	Unsecured	Adj. SOFR + 1.40%	07/25/2027			—
Series B Senior Notes	Unsecured	4.79%	01/10/2028			105,000
Term Loan 2 (3)	Unsecured	6.76%	01/25/2028			175,000

Total Debt					$	818,512

Preferred Stock
Series G cumulative redeemable preferred (4)		1.621%	perpetual		$	66,250
Series H cumulative redeemable preferred		6.125%	perpetual			115,000
Series I cumulative redeemable preferred		5.70%	perpetual			100,000
Total Preferred Stock					$	281,250

Debt and Preferred Statistics
			Debt Statistics			Debt and Preferred Statistics
% Fixed Rate Debt			51.1	%		63.6	%
% Floating Rate Debt			48.9	%		36.4	%
Average Interest Rate			5.79	%		5.56	%
Weighted Average Maturity of Debt			2.8 years			N/A

(1)	Maturity Date assumes the exercise of all available extensions for the Revolving Line of Credit and Term Loan 3. By extending these loans, the Company's weighted average maturity of debt increases from 2.5 years to 2.8 years.

(2)	Interest rates on Term Loan 3 are calculated on a leverage-based pricing grid ranging from 135 to 220 basis points over the applicable adjusted term SOFR. Term Loan 3 has an initial term of two years with one 12-month extension, which would result in an extended maturity of May 2026.

(3)

Pursuant to the Second Amended Credit Agreement, interest rates on Term Loan 1 and Term Loan 2 are calculated on a leverage-based pricing grid ranging from 135 to 220 basis points over the applicable adjusted term SOFR. In May 2023, the pricing grid was reduced by 0.02% to a range of 133 to 218 basis points as the Company achieved the 2022 sustainability performance metric specified in the Second Amended Credit Agreement. The reduction in the pricing grid will be evaluated annually and is subject to the Company's continued ability to satisfy its sustainability metric. The interest rate for Term Loan 1 includes the effects of the Company's interest rate derivative swaps.

(4)

The Series G cumulative redeemable preferred stock had an initial dividend rate equal to the Montage Healdsburg's annual net operating income yield on the Company's total investment in the resort, resulting in cash dividends of $0.030365 per share declared for the last six months of 2023. During the first half of 2024, the dividend rate increased to the greater of 3.0% or the rate equal to the Montage Healdsburg’s annual net operating income yield on the Company’s total investment in the resort, resulting in cash dividends of $0.375 per share declared for the first six months of 2024. The total dividends declared during the last twelve months equate to an annual yield of 1.621%. In the second half of 2024, the dividend rate is expected to increase to the greater of 4.5% or the rate equal to the Montage Healdsburg's annual net operating income yield on the Company's total investment in the resort.


CAPITALIZATION								Page 14


	Supplemental Financial Information May 6, 2024

PROPERTY-LEVEL DATA AND OPERATING STATISTICS


PROPERTY-LEVEL DATA AND OPERATING STATISTICS								Page 15


	Supplemental Financial Information May 6, 2024

Hotel Information as of May 6, 2024


Hotel		Location	Brand	Number of Rooms	% of Total Rooms	Interest	Year Acquired

1	Hilton San Diego Bayfront (1) (2)	California	Hilton	1,190	16%	Leasehold	2011 / 2022
2	Hyatt Regency San Francisco	California	Hyatt	821	11%	Fee Simple	2013
3	The Westin Washington, DC Downtown	Washington DC	Marriott	807	11%	Fee Simple	2005
4	Renaissance Orlando at SeaWorld®	Florida	Marriott	781	11%	Fee Simple	2005
5	Hyatt Regency San Antonio Riverwalk	Texas	Hyatt	630	9%	Fee Simple	2024
6	Wailea Beach Resort	Hawaii	Marriott	547	7%	Fee Simple	2014
7	JW Marriott New Orleans (3)	Louisiana	Marriott	501	7%	Fee Simple	2011
8	Marriott Boston Long Wharf	Massachusetts	Marriott	415	6%	Fee Simple	2007
9	Marriott Long Beach Downtown	California	Marriott	376	5%	Fee Simple	2005
10	The Confidante Miami Beach	Florida	Hyatt	339	5%	Fee Simple	2022
11	The Bidwell Marriott Portland	Oregon	Marriott	258	4%	Fee Simple	2000
12	Hilton New Orleans St. Charles	Louisiana	Hilton	252	3%	Fee Simple	2013
13	Oceans Edge Resort & Marina	Florida	Independent	175	2%	Fee Simple	2017
14	Montage Healdsburg (4)	California	Montage	130	2%	Fee Simple	2021
15	Four Seasons Resort Napa Valley (4)	California	Four Seasons	85	1%	Fee Simple	2021

	Total Portfolio			7,307	100%

(1)	In June 2022, the Company acquired the 25.0% noncontrolling partner's ownership interest in the Hilton San Diego Bayfront. Following this acquisition, the Company owns 100% of the hotel.

(2)	The ground lease at the Hilton San Diego Bayfront matures in 2071.

(3)	Hotel is subject to a municipal airspace lease that matures in 2044 and applies only to certain balcony space that is not integral to the hotel’s operations.

(4)	The number of rooms excludes rooms provided by owners of the separately owned private residences at each resort who may periodically elect to participate in the applicable resort’s residential rental program.


PROPERTY-LEVEL DATA AND OPERATING STATISTICS								Page 16


	Supplemental Financial Information May 6, 2024

Property-Level Operating Statistics

ADR, Occupancy, RevPAR and Total RevPAR (TRevPAR)

Q1 2024/2023


	ADR					Occupancy					RevPAR				TRevPAR
Hotels sorted by number of rooms	For the Quarter Ended March 31,					For the Quarter Ended March 31,				For the Quarter Ended March 31,					For the Quarter Ended March 31,
	2024			2023	2024 vs. 2023	2024	2023	2024 vs. 2023		2024		2023		2024 vs. 2023	2024		2023		2024 vs. 2023
Hilton San Diego Bayfront	$	290	$	286	1.7%	81.7%	82.9%	(120)	bps	$	237	$	237	0.2%	$	428	$	432	(0.9)%
Hyatt Regency San Francisco		325		324	0.4%	65.6%	66.0%	(40)	bps		213		214	(0.2)%		293		303	(3.2)%
The Westin Washington, DC Downtown (1)		265		245	8.2%	67.0%	47.7%	1,930	bps		178		117	52.0%		294		166	77.1%
Renaissance Orlando at SeaWorld®		230		221	4.0%	81.1%	83.2%	(210)	bps		186		184	1.4%		396		407	(2.8)%
Wailea Beach Resort		696		738	(5.6)%	81.0%	79.7%	130	bps		564		588	(4.1)%		806		851	(5.3)%
JW Marriott New Orleans		272		264	2.8%	68.4%	72.6%	(420)	bps		186		192	(3.2)%		253		267	(5.4)%
Marriott Boston Long Wharf		286		288	(0.6)%	67.6%	59.1%	850	bps		193		170	13.6%		285		249	14.5%
Marriott Long Beach Downtown (1)		226		239	(5.6)%	32.6%	74.1%	(4,150)	bps		74		177	(58.5)%		100		236	(57.5)%
The Bidwell Marriott Portland		143		160	(10.5)%	58.5%	50.5%	800	bps		84		81	3.7%		120		113	6.7%
Hilton New Orleans St. Charles		198		206	(3.8)%	80.0%	74.7%	530	bps		158		154	3.1%		184		175	5.6%
Oceans Edge Resort & Marina		420		471	(10.8)%	81.5%	78.7%	280	bps		342		370	(7.6)%		513		532	(3.5)%
Montage Healdsburg		868		941	(7.8)%	37.5%	43.0%	(550)	bps		325		405	(19.6)%		629		717	(12.2)%
Four Seasons Resort Napa Valley		1,075		1,370	(21.5)%	34.0%	30.3%	370	bps		365		415	(12.0)%		750		808	(7.1)%

Comparable Portfolio, Excluding Renovation Hotel (2)		327		331	(1.3)%	70.1%	69.7%	40	bps		229		231	(0.7)%		369		369	0.0%

Add: Renovation Hotel (1)
The Confidante Miami Beach		270		366	(26.3)%	41.1%	83.9%	(4,280)	bps		111		307	(63.9)%		130		478	(72.8)%

Comparable Portfolio (3)	$	325	$	333	(2.4)%	68.6%	70.5%	(190)	bps	$	223	$	235	(5.1)%	$	357	$	375	(4.7)%

*Footnotes on page 18


PROPERTY-LEVEL DATA AND OPERATING STATISTICS								Page 17


	Supplemental Financial Information May 6, 2024

Property-Level Operating Statistics

Q1 2024/2023 Footnotes

(1)

Operating statistics for the first quarter of 2024 are impacted by renovation activity at Marriott Long Beach Downtown and The Confidante Miami Beach. In March 2024, operations at The Confidante Miami Beach were temporarily suspended to allow for extensive renovation work to be performed. The Company expects the resort to resume operations as Andaz Miami Beach in the fourth quarter of 2024. Operating statistics for the first quarter of 2023 are impacted by renovation activity at The Westin Washington, DC Downtown.

(2)	Comparable Portfolio, Excluding Renovation Hotel includes all hotels owned by the Company as of March 31, 2024, with the exception of The Confidante Miami Beach due to its renovation activity during the first quarter of 2024.

(3)	Comparable Portfolio consists of all hotels owned by the Company as of March 31, 2024.


PROPERTY-LEVEL DATA AND OPERATING STATISTICS								Page 18


	Supplemental Financial Information May 6, 2024

PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre &

ADJUSTED EBITDAre MARGINS


PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS								Page 19


	Supplemental Financial Information May 6, 2024

Property-Level Revenues, Adjusted EBITDAre and Adjusted EBITDAre Margins

Q1 2024/2023


Hotels sorted by number of rooms	For the Quarter Ended March 31,
	2024					2023
(In thousands)					Hotel Adjusted					Hotel Adjusted	Hotel Adjusted
	Total		Hotel Adjusted		EBITDAre	Total		Hotel Adjusted		EBITDAre	EBITDAre
	Revenues		EBITDAre		Margins	Revenues		EBITDAre		Margins	Margin Change
Hilton San Diego Bayfront	$	46,388	$	14,314	30.9%	$	46,301	$	15,039	32.5%	(160)	bps
Hyatt Regency San Francisco		21,926		2,619	11.9%		22,403		3,674	16.4%	(450)	bps
The Westin Washington, DC Downtown (1)		21,583		4,685	21.7%		12,055		606	5.0%	1,670	bps
Renaissance Orlando at SeaWorld®		28,140		10,127	36.0%		28,623		11,093	38.8%	(280)	bps
Wailea Beach Resort		40,133		15,556	38.8%		41,916		16,800	40.1%	(130)	bps
JW Marriott New Orleans		11,532		4,430	38.4%		12,053		5,475	45.4%	(700)	bps
Marriott Boston Long Wharf		10,779		1,682	15.6%		9,309		1,046	11.2%	440	bps
Marriott Long Beach Downtown (1)		3,421		(2,018)	(59.0)%		7,954		2,511	31.6%	(9,060)	bps
The Bidwell Marriott Portland		2,817		204	7.2%		2,613		168	6.4%	80	bps
Hilton New Orleans St. Charles		4,227		1,609	38.1%		3,960		1,521	38.4%	(30)	bps
Oceans Edge Resort & Marina		8,174		3,606	44.1%		8,377		3,978	47.5%	(340)	bps
Montage Healdsburg		7,543		(1,579)	(20.9)%		8,384		(1,310)	(15.6)%	(530)	bps
Four Seasons Resort Napa Valley		6,488		(2,702)	(41.6)%		6,856		(1,858)	(27.1)%	(1,450)	bps

Comparable Portfolio, Excluding Renovation Hotel (2)		213,151		52,533	24.6%		210,804		58,743	27.9%	(330)	bps

Add: Renovation Hotel (1)
The Confidante Miami Beach		4,015		(238)	(5.9)%		14,581		5,667	38.9%	(4,480)	bps

Comparable Portfolio (3)		217,166		52,295	24.1%		225,385		64,410	28.6%	(450)	bps

Add: Sold Hotel (4)		N/A		N/A	N/A		18,040		1,003	5.6%	N/A

Actual Portfolio (5)	$	217,166	$	52,295	24.1%	$	243,425	$	65,413	26.9%	N/A

*Footnotes on page 21


PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS								Page 20


	Supplemental Financial Information May 6, 2024

Property-Level Revenues, Adjusted EBITDAre and Adjusted EBITDAre Margins

Q1 2024/2023 Footnotes

(1)

Hotel Adjusted EBITDAre for the first quarter of 2024 is impacted by renovation activity at Marriott Long Beach Downtown and The Confidante Miami Beach. In March 2024, operations at The Confidante Miami Beach were temporarily suspended to allow for extensive renovation work to be performed. The Company expects the resort to resume operations as Andaz Miami Beach in the fourth quarter of 2024. Adjusted EBITDAre for the first quarter of 2023 is impacted by renovation activity at The Westin Washington, DC Downtown.

(2)	Comparable Portfolio, Excluding Renovation Hotel includes all hotels owned by the Company as of March 31, 2024, with the exception of The Confidante Miami Beach due to its renovation activity during the first quarter of 2024.

(3)	Comparable Portfolio consists of all hotels owned by the Company as of March 31, 2024.

(4)	Sold Hotel includes the Boston Park Plaza sold in October 2023.

(5)	Actual Portfolio includes results for the 14 hotels and 15 hotels owned by the Company during the first quarters of 2024 and 2023, respectively.


PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS								Page 21