EX-99.2 3 sho-20250218xex99d2.htm EX-99.2

Exhibit 99.2


Supplemental Financial Information For the quarter and year ended December 31, 2024 February 21, 2025

Supplemental Financial Information
February 21, 2025

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								20


	Supplemental Financial Information February 21, 2025

CORPORATE PROFILE AND DISCLOSURES
REGARDING NON-GAAP FINANCIAL MEASURES


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


	Supplemental Financial Information February 21, 2025

About Sunstone

Sunstone Hotel Investors, Inc. (the “Company,” “we,” and “our”) (NYSE: SHO) is a lodging real estate investment trust (“REIT”) that as of February 21, 2025 owns 15 hotels comprised of 7,253 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 February 21, 2025

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 February 21, 2025

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, and management transition costs; pre-opening costs associated with extensive renovation projects such as the work being performed at The Confidante Miami Beach; 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 (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 February 21, 2025

COMPARABLE CORPORATE FINANCIAL INFORMATION


COMPARABLE CORPORATE FINANCIAL INFORMATION								Page 6


	Supplemental Financial Information February 21, 2025

Comparable Consolidated Statements of Operations

Q4 2024 – Q1 2024, FY 2024


	Quarter Ended (1)								Year Ended (1)
(Unaudited and in thousands, except per share data)	December 31,		September 30,		June 30,		March 31,		December 31,
	2024		2024		2024		2024		2024
Revenues
Room	$	133,191	$	138,759	$	153,790	$	144,437	$	570,177
Food and beverage		59,650		63,866		72,552		64,989		261,057
Other operating		21,929		23,767		25,339		21,277		92,312
Total revenues		214,770		226,392		251,681		230,703		923,546

Operating Expenses
Room		36,020		37,453		37,922		37,518		148,913
Food and beverage		44,497		46,286		48,312		46,368		185,463
Other expenses		86,414		86,989		88,490		87,896		349,789
Corporate overhead		5,787		7,577		8,168		7,518		29,050
Depreciation and amortization		32,666		31,689		31,112		31,063		126,530
Total operating expenses		205,384		209,994		214,004		210,363		839,745

Interest and other income		1,873		2,350		3,503		5,453		13,179
Interest expense		(10,440)		(15,982)		(12,693)		(11,010)		(50,125)
Income before income taxes		819		2,766		28,487		14,783		46,855
Income tax benefit (provision), net		17		(99)		(255)		(93)		(430)
Net income	$	836	$	2,667	$	28,232	$	14,690	$	46,425

Comparable Hotel Adjusted EBITDAre (2)	$	49,946	$	56,426	$	77,322	$	57,399	$	241,093

Comparable Adjusted EBITDAre (3)	$	48,093	$	53,567	$	75,651	$	59,615	$	236,926

Comparable Adjusted FFO attributable to common stockholders (4)	$	32,020	$	36,851	$	58,754	$	42,622	$	170,247

Comparable Adjusted FFO attributable to common stockholders per diluted share (4)	$	0.16	$	0.18	$	0.29	$	0.21	$	0.85

*Footnotes on page 8


COMPARABLE CORPORATE FINANCIAL INFORMATION								Page 7


	Supplemental Financial Information February 21, 2025

Comparable Consolidated Statements of Operations

Footnotes

(1)

Includes results for all 15 hotels owned by the Company as of December 31, 2024. Also includes prior ownership results for the Hyatt Regency San Antonio Riverwalk acquired by the Company in April 2024, adjusted for the Company's pro forma depreciation expense. The Company obtained prior ownership information from the previous owner of the Hyatt Regency San Antonio Riverwalk during the due diligence period before acquiring the hotel. The Company performed a limited review of the information as part of its analysis of the acquisition. 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 fourth quarter and full year 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 February 21, 2025. Comparable Hotel Adjusted EBITDAre presented for 2024 includes all hotels owned by the Company as of December 31, 2024.

(3)	Comparable Adjusted EBITDAre reconciliation for the four quarters and full year 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 four quarters and full year of 2024 can be found in the following pages and reflect the adjustments noted in Footnote 1 above, along with pro forma adjustments to reflect the Company's repurchases of its common stock during the second, third, and fourth quarters of 2024 as if the repurchases had occurred on January 1, 2024.


COMPARABLE CORPORATE FINANCIAL INFORMATION									Page 8


	Supplemental Financial Information February 21, 2025

Comparable Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre

Q4 2024 – Q1 2024, FY 2024


	Quarter Ended								Year Ended
	December 31,		September 30,		June 30,		March 31,		December 31,
(In thousands)	2024		2024		2024		2024		2024

Net income	$	836	$	3,249	$	26,142	$	13,035	$	43,262
Depreciation and amortization		32,666		31,689		31,112		29,040		124,507
Interest expense		10,440		15,982		12,693		11,010		50,125
Income tax (benefit) provision, net		(17)		(483)		255		(855)		(1,100)
Gain on sale of assets, net		—		—		—		(457)		(457)
EBITDAre		43,925		50,437		70,202		51,773		216,337

Amortization of deferred stock compensation		2,075		2,430		3,181		2,770		10,456
Amortization of right-of-use assets and obligations		(154)		(153)		(107)		(11)		(425)
Gain on extinguishment of debt		—		—		(38)		(21)		(59)
Gain on insurance recoveries		(116)		—		(314)		—		(430)
Pre-opening costs		1,181		853		599		—		2,633
Property-level legal settlement costs		1,182		—		—		—		1,182
Adjustments to EBITDAre, net		4,168		3,130		3,321		2,738		13,357

Adjusted EBITDAre		48,093		53,567		73,523		54,511		229,694
Acquisition hotel Adjusted EBITDAre (1)		—		—		2,128		5,104		7,232

Comparable Adjusted EBITDAre	$	48,093	$	53,567	$	75,651	$	59,615	$	236,926

*Footnotes on page 11


COMPARABLE CORPORATE FINANCIAL INFORMATION									Page 9


	Supplemental Financial Information February 21, 2025

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

Q4 2024 – Q1 2024, FY 2024


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

Net income	$	836	$	3,249	$	26,142	$	13,035	$	43,262
Preferred stock dividends		(3,931)		(3,931)		(3,683)		(3,683)		(15,228)
Real estate depreciation and amortization		32,250		31,320		30,771		28,755		123,096
Gain on sale of assets, net		—		—		—		(457)		(457)
FFO attributable to common stockholders		29,155		30,638		53,230		37,650		150,673

Amortization of deferred stock compensation		2,075		2,430		3,181		2,770		10,456
Real estate amortization of right-of-use assets and obligations		(136)		(129)		(130)		(122)		(517)
Amortization of contract intangibles, net		314		315		287		231		1,147
Noncash interest on derivatives, net		(1,635)		3,326		(189)		(2,042)		(540)
Gain on extinguishment of debt		—		—		(38)		(21)		(59)
Gain on insurance recoveries		(116)		—		(314)		—		(430)
Pre-opening costs		1,181		853		599		—		2,633
Property-level legal settlement costs		1,182		—		—		—		1,182
Prior year income tax benefit, net		—		(582)		—		(948)		(1,530)
Adjustments to FFO attributable to common stockholders, net		2,865		6,213		3,396		(132)		12,342

Adjusted FFO attributable to common stockholders		32,020		36,851		56,626		37,518		163,015
Acquisition hotel Adjusted FFO (1)		—		—		2,128		5,104		7,232

Comparable Adjusted FFO attributable to common stockholders	$	32,020	$	36,851	$	58,754	$	42,622	$	170,247

Comparable Adjusted FFO attributable to common stockholders per diluted share	$	0.16	$	0.18	$	0.29	$	0.21	$	0.85

Basic weighted average shares outstanding		200,185		201,402		202,758		202,631		201,739
Shares associated with unvested restricted stock awards		2,048		1,065		932		665		1,204
Diluted weighted average shares outstanding		202,233		202,467		203,690		203,296		202,943
Equity transactions (2)		(44)		(1,345)		(2,729)		(2,765)		(1,715)
Comparable diluted weighted average shares outstanding		202,189		201,122		200,961		200,531		201,228

*Footnotes on page 11


COMPARABLE CORPORATE FINANCIAL INFORMATION									Page 10


	Supplemental Financial Information February 21, 2025

Comparable Reconciliation of Net Income to EBITDAre, Adjusted EBITDAre,

FFO and Adjusted FFO Attributable to Common Stockholders

Q4 2024 – Q1 2024, FY 2024 Footnotes

(1)	Acquisition hotel Adjusted EBITDAre and Adjusted FFO include prior ownership results for the Hyatt Regency San Antonio Riverwalk acquired by the Company in April 2024.

(2)	Equity transactions represent pro forma adjustments to reflect the Company's repurchases of its common stock during the second, third, and fourth quarters of 2024 as if the repurchases had occurred on January 1, 2024.


COMPARABLE CORPORATE FINANCIAL INFORMATION								Page 11


	Supplemental Financial Information February 21, 2025

CAPITALIZATION


CAPITALIZATION								Page 12


	Supplemental Financial Information February 21, 2025

Comparative Capitalization
Q4 2024 – Q4 2023


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

Common Share Price & Dividends
At the end of the quarter	$	11.84		$	10.32		$	10.46		$	11.14		$	10.73
High during quarter ended	$	12.38		$	10.86		$	11.09		$	11.38		$	11.05
Low during quarter ended	$	10.00		$	9.46		$	9.96		$	10.42		$	9.04
Common dividends per share	$	0.09		$	0.09		$	0.09		$	0.07		$	0.13

Common Shares & Units
Common shares outstanding		200,825			200,919			203,390			203,674			203,480
Units outstanding		—			—			—			—			—
Total common shares and units outstanding		200,825			200,919			203,390			203,674			203,480

Capitalization
Market value of common equity	$	2,377,768		$	2,073,489		$	2,127,464		$	2,268,933		$	2,183,336
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		845,000			817,437			817,978			818,512			819,050
Total capitalization	$	3,504,018		$	3,172,176		$	3,226,692		$	3,368,695		$	3,283,636

Total debt to total capitalization		24.1	%		25.8	%		25.4	%		24.3	%		24.9	%
Total debt and preferred equity to total capitalization		32.1	%		34.6	%		34.1	%		32.6	%		33.5	%


CAPITALIZATION								Page 13


	Supplemental Financial Information February 21, 2025

Debt and Preferred Stock Summary Schedule


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

Series A Senior Notes	4.69%	01/10/2026		$	65,000
Term Loan 3 (2)	5.83%	05/01/2026			225,000
Term Loan 4 (2)	5.47%	11/07/2026			100,000
Term Loan 1 (3)	5.27%	07/25/2027			175,000
Revolving Line of Credit	Adj. SOFR + 1.40%	07/25/2027			—
Series B Senior Notes	4.79%	01/10/2028			105,000
Term Loan 2 (3)	6.02%	01/25/2028			175,000
Total Unsecured Debt				$	845,000

Preferred Stock
Series G cumulative redeemable preferred (4)	3.750%	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 (5)
		Debt Statistics			Debt and Preferred Statistics
% Fixed Rate Debt		52.7	%		64.5	%
% Floating Rate Debt		47.3	%		35.5	%
Average Interest Rate		5.49	%		5.47	%
Weighted Average Maturity of Debt		2.2 years			N/A

(1)	Maturity Date assumes the exercise of all available extensions for the Revolving Line of Credit, Term Loan 3, and Term Loan 4. By extending these loans, the Company's weighted average maturity of debt increases from 1.8 years to 2.2 years.

(2)

Interest rates on Term Loan 3 and Term Loan 4 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. Term Loan 4 has an initial term of one year with two six-month extensions, which would result in an extended maturity of November 2026. In January 2025, the Company entered into an interest rate swap on Term Loan 4. The swap is effective January 31, 2025, expires November 7, 2026, and fixes the SOFR rate on Term Loan 4 to 4.02%. The interest rate for Term Loan 4 includes the effect of the Company’s interest rate derivative swap.

(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. 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. During the first and third quarters of 2024, the dividend rate increased to the greater of 3.0% and 4.5%, respectively, or the rate equal to the Montage Healdsburg's annual net operating income yield on the Company's total investment in the resort. Based on the dividends declared during 2024, this equates to an annual dividend yield of 3.750%. In the third quarter of 2025, the dividend rate will increase to the greater of 6.5% or the rate equal to the Montage Healdsburg's annual net operating income yield on the Company's total investment in the resort.

(5)	Debt and Preferred Statistics include the effects of the Company’s interest rate derivative swap on Term Loan 4 entered into in January 2025.


CAPITALIZATION								Page 14


	Supplemental Financial Information February 21, 2025

PROPERTY-LEVEL DATA AND OPERATING STATISTICS


PROPERTY-LEVEL DATA AND OPERATING STATISTICS								Page 15


	Supplemental Financial Information February 21, 2025

Hotel Information as of February 21, 2025


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	545	8%	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	Andaz Miami Beach (4)	Florida	Hyatt	287	4%	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 (5)	California	Montage	130	2%	Fee Simple	2021
15	Four Seasons Resort Napa Valley (5)	California	Four Seasons	85	1%	Fee Simple	2021

	Total Portfolio			7,253	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 Confidante Miami Beach is expected to debut as Andaz Miami Beach in the first quarter of 2025, following the hotel’s transformative renovation and conversion.

(5)	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 February 21, 2025

Property-Level Operating Statistics

ADR, Occupancy, RevPAR and Total RevPAR (TRevPAR)

Q4 2024/2023


Hotels sorted by number of rooms	For the Quarters Ended December 31,
	ADR					Occupancy					RevPAR				TRevPAR
	2024			2023	2024 vs. 2023	2024	2023	2024 vs. 2023		2024		2023		2024 vs. 2023	2024		2023		2024 vs. 2023
Hilton San Diego Bayfront	$	257	$	253	1.4%	69.7%	76.0%	(630)	bps	$	179	$	192	(7.0)%	$	318	$	378	(15.7)%
Hyatt Regency San Francisco		270		307	(12.3)%	75.1%	66.6%	850	bps		202		205	(1.1)%		291		306	(4.9)%
The Westin Washington, DC Downtown (1)		292		279	4.8%	62.1%	58.4%	370	bps		181		163	11.5%		291		270	8.0%
Renaissance Orlando at SeaWorld®		182		180	1.0%	59.5%	60.4%	(90)	bps		108		109	(0.6)%		254		256	(0.8)%
Hyatt Regency San Antonio Riverwalk		196		206	(4.9)%	75.2%	71.2%	400	bps		148		147	0.5%		254		234	8.7%
Wailea Beach Resort		708		699	1.2%	58.6%	72.4%	(1,380)	bps		415		506	(18.1)%		600		731	(18.0)%
JW Marriott New Orleans		285		243	17.3%	67.6%	66.3%	130	bps		193		161	19.6%		254		233	9.1%
Marriott Boston Long Wharf		374		380	(1.5)%	78.8%	71.2%	760	bps		295		271	9.0%		423		380	11.3%
Marriott Long Beach Downtown (1)		217		210	3.3%	68.9%	49.0%	1,990	bps		150		103	45.3%		213		150	42.2%
The Bidwell Marriott Portland		146		156	(6.4)%	65.3%	52.6%	1,270	bps		95		82	16.2%		129		112	15.2%
Hilton New Orleans St. Charles		216		185	16.9%	71.6%	71.4%	20	bps		154		132	17.2%		178		153	16.4%
Oceans Edge Resort & Marina		268		315	(15.1)%	77.0%	76.6%	40	bps		206		242	(14.7)%		345		381	(9.6)%
Montage Healdsburg		928		1,044	(11.1)%	56.9%	47.9%	900	bps		528		500	5.6%		990		956	3.6%
Four Seasons Resort Napa Valley		1,229		1,484	(17.2)%	61.2%	40.8%	2,040	bps		752		606	24.2%		1,438		1,087	32.3%

Comparable Portfolio, Excluding Renovation Hotel (2)		305		312	(2.2)%	68.0%	65.9%	210	bps		207		205	1.0%		334		338	(1.2)%

Add: Renovation Hotel (1)
The Confidante Miami Beach		—		224	(100.0)%	0.0%	53.0%	(5,300)	bps		—		119	(100.0)%		6		152	(95.8)%

Comparable Portfolio (3)	$	305	$	308	(1.1)%	65.3%	65.3%	—	bps	$	199	$	201	(1.1)%	$	321	$	329	(2.5)%

*Footnotes on page 19


PROPERTY-LEVEL DATA AND OPERATING STATISTICS								Page 17


	Supplemental Financial Information February 21, 2025

Property-Level Operating Statistics

ADR, Occupancy, RevPAR and Total RevPAR (TRevPAR)

2024/2023


Hotels sorted by number of rooms	For the Years Ended December 31,
	ADR					Occupancy				RevPAR					TRevPAR
	2024			2023	2024 vs. 2023	2024	2023	2024 vs. 2023		2024		2023		2024 vs. 2023	2024		2023		2024 vs. 2023
Hilton San Diego Bayfront	$	278	$	276	0.9%	79.2%	82.8%	(360)	bps	$	220	$	228	(3.5)%	$	396	$	423	(6.4)%
Hyatt Regency San Francisco		286		302	(5.2)%	74.5%	69.6%	490	bps		213		210	1.5%		295		302	(2.4)%
The Westin Washington, DC Downtown (1)		282		265	6.6%	69.4%	56.7%	1,270	bps		196		150	30.4%		316		230	37.5%
Renaissance Orlando at SeaWorld®		196		192	1.9%	67.8%	70.4%	(260)	bps		133		135	(1.9)%		295		306	(3.5)%
Hyatt Regency San Antonio Riverwalk		197		201	(1.9)%	72.5%	70.9%	160	bps		143		142	0.3%		240		226	6.0%
Wailea Beach Resort		673		691	(2.6)%	68.6%	75.6%	(700)	bps		462		522	(11.7)%		689		759	(9.2)%
JW Marriott New Orleans		251		241	4.2%	68.0%	69.6%	(160)	bps		170		167	1.8%		234		232	0.6%
Marriott Boston Long Wharf		380		381	(0.3)%	80.5%	73.6%	690	bps		306		280	9.1%		432		392	10.3%
Marriott Long Beach Downtown (1)		223		223	0.2%	55.3%	71.3%	(1,600)	bps		123		159	(22.3)%		169		211	(20.2)%
The Bidwell Marriott Portland		152		169	(10.0)%	67.3%	55.7%	1,160	bps		102		94	8.8%		142		130	8.7%
Hilton New Orleans St. Charles		187		182	2.8%	70.3%	68.2%	210	bps		132		124	6.0%		153		150	2.0%
Oceans Edge Resort & Marina		307		355	(13.4)%	77.5%	76.6%	90	bps		238		272	(12.4)%		397		430	(7.8)%
Montage Healdsburg		1,026		1,065	(3.6)%	55.6%	52.5%	310	bps		571		559	2.1%		1,088		1,027	6.0%
Four Seasons Resort Napa Valley		1,322		1,513	(12.6)%	55.9%	45.2%	1,070	bps		739		684	8.1%		1,400		1,254	11.7%

Comparable Portfolio, Excluding Renovation Hotel (2)		311		315	(1.2)%	71.2%	70.3%	90	bps		222		222	0.0%		360		357	0.7%

Add: Renovation Hotel (1)
The Confidante Miami Beach		269		277	(2.9)%	11.6%	60.7%	(4,910)	bps		31		168	(81.5)%		41		265	(84.6)%

Comparable Portfolio (3)	$	311	$	314	(0.8)%	68.8%	69.9%	(110)	bps	$	214	$	219	(2.4)%	$	347	$	353	(1.8)%

*Footnotes on page 19


PROPERTY-LEVEL DATA AND OPERATING STATISTICS								Page 18


	Supplemental Financial Information February 21, 2025

Property-Level Operating Statistics

Q4 and FY 2024/2023 Footnotes

(1)

Operating statistics for the fourth quarters and full years of 2024 and 2023 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 first quarter of 2025. Operating statistics for the fourth quarter and full year of 2023 are also 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 December 31, 2024, with the exception of The Confidante Miami Beach due to its renovation activity during the fourth quarters and full years of 2024 and 2023. Amounts included in this presentation for the Hyatt Regency San Antonio Riverwalk, acquired by the Company in April 2024, include both prior ownership results and the Company’s results. The Company obtained prior ownership information from the previous owner of the Hyatt Regency San Antonio Riverwalk during the due diligence period before acquiring the hotel. The Company performed a limited review of the information as part of its analysis of the acquisition.

(3)	Comparable Portfolio consists of all hotels owned by the Company as of December 31, 2024, and includes prior ownership information for the Hyatt Regency San Antonio Riverwalk as discussed in Note 2.


PROPERTY-LEVEL DATA AND OPERATING STATISTICS								Page 19


	Supplemental Financial Information February 21, 2025

PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre &

ADJUSTED EBITDAre MARGINS


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


	Supplemental Financial Information February 21, 2025

Property-Level Revenues, Adjusted EBITDAre and Adjusted EBITDAre Margins

Q4 2024/2023


Hotels sorted by number of rooms	For the Quarters Ended December 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	$	34,857	$	6,081	17.4%	$	41,358	$	11,484	27.8%	(1,040)	bps
Hyatt Regency San Francisco		21,984		1,521	6.9%		23,120		2,786	12.1%	(520)	bps
The Westin Washington, DC Downtown (1)		21,636		6,119	28.3%		20,037		3,633	18.1%	1,020	bps
Renaissance Orlando at SeaWorld®		18,254		4,514	24.7%		18,394		4,774	26.0%	(130)	bps
Hyatt Regency San Antonio Riverwalk		14,742		6,202	42.1%		13,567		5,723	42.2%	(10)	bps
Wailea Beach Resort		30,122		9,716	32.3%		36,804		14,244	38.7%	(640)	bps
JW Marriott New Orleans		11,697		4,692	40.1%		10,719		3,765	35.1%	500	bps
Marriott Boston Long Wharf		16,144		5,616	34.8%		14,499		5,320	36.7%	(190)	bps
Marriott Long Beach Downtown (1)		7,370		1,195	16.2%		5,157		138	2.7%	1,350	bps
The Bidwell Marriott Portland		3,059		166	5.4%		2,655		285	10.7%	(530)	bps
Hilton New Orleans St. Charles		4,117		1,597	38.8%		3,535		1,229	34.8%	400	bps
Oceans Edge Resort & Marina		5,546		1,686	30.4%		6,136		1,996	32.5%	(210)	bps
Montage Healdsburg		12,417		392	3.2%		11,438		900	7.9%	(470)	bps
Four Seasons Resort Napa Valley		12,655		1,133	9.0%		9,497		(479)	(5.0)%	1,400	bps

Comparable Portfolio, Excluding Renovation Hotel (2)		214,600		50,630	23.6%		216,916		55,798	25.7%	(210)	bps

Add: Renovation Hotel (1)
The Confidante Miami Beach		170		(684)	(402.4)%		4,745		(220)	(4.6)%	(39,780)	bps

Comparable Portfolio (3)		214,770		49,946	23.3%		221,661		55,578	25.1%	(180)	bps

Less: Prior Ownership (4)
Hyatt Regency San Antonio Riverwalk		—		—	N/A		(13,567)		(5,723)	42.2%	N/A

Add: Sold Hotel (5)		—		—	N/A		11,131		5,420	48.7%	N/A

Actual Portfolio (6)	$	214,770	$	49,946	23.3%	$	219,225	$	55,275	25.2%	N/A

*Footnotes on page 23


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


	Supplemental Financial Information February 21, 2025

Property-Level Revenues, Adjusted EBITDAre and Adjusted EBITDAre Margins

2024/2023


Hotels sorted by number of rooms	For the Years Ended December 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	$	172,487	$	46,780	27.1%	$	183,695	$	58,457	31.8%	(470)	bps
Hyatt Regency San Francisco		88,551		8,108	9.2%		90,505		13,269	14.7%	(550)	bps
The Westin Washington, DC Downtown (1)		93,232		27,673	29.7%		67,630		12,019	17.8%	1,190	bps
Renaissance Orlando at SeaWorld®		84,426		24,217	28.7%		87,211		27,531	31.6%	(290)	bps
Hyatt Regency San Antonio Riverwalk		55,287		22,021	39.8%		52,030		20,268	39.0%	80	bps
Wailea Beach Resort		137,909		48,159	34.9%		151,546		58,213	38.4%	(350)	bps
JW Marriott New Orleans		42,879		15,367	35.8%		42,489		16,269	38.3%	(250)	bps
Marriott Boston Long Wharf		65,658		24,495	37.3%		59,360		21,456	36.1%	120	bps
Marriott Long Beach Downtown (1)		23,182		(27)	(0.1)%		28,844		7,098	24.6%	(2,470)	bps
The Bidwell Marriott Portland		13,363		2,121	15.9%		12,262		2,061	16.8%	(90)	bps
Hilton New Orleans St. Charles		14,135		4,638	32.8%		13,816		4,766	34.5%	(170)	bps
Oceans Edge Resort & Marina		25,426		8,339	32.8%		27,498		9,965	36.2%	(340)	bps
Montage Healdsburg		53,721		8,064	15.0%		48,741		5,214	10.7%	430	bps
Four Seasons Resort Napa Valley		48,832		3,103	6.4%		43,385		2,533	5.8%	60	bps

Comparable Portfolio, Excluding Renovation Hotel (2)		919,088		243,058	26.4%		909,012		259,119	28.5%	(210)	bps

Add: Renovation Hotel (1)
The Confidante Miami Beach		4,458		(1,965)	(44.1)%		32,730		5,881	18.0%	(6,210)	bps

Comparable Portfolio (3)		923,546		241,093	26.1%		941,742		265,000	28.1%	(200)	bps

Less: Prior Ownership (4)
Hyatt Regency San Antonio Riverwalk		(17,737)		(7,232)	N/A		(52,030)		(20,268)	39.0%	N/A

Add: Sold Hotel (5)		—		—	N/A		96,713		32,024	33.1%	N/A

Actual Portfolio (6)	$	905,809	$	233,861	25.8%	$	986,425	$	276,756	28.1%	N/A

*Footnotes on page 23


PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS								Page 22


	Supplemental Financial Information February 21, 2025

Property-Level Revenues, Adjusted EBITDAre and Adjusted EBITDAre Margins

Q4 and FY 2024/2023 Footnotes

(1)

Hotel Adjusted EBITDAre for the fourth quarters and full years of 2024 and 2023 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 first quarter of 2025. Hotel Adjusted EBITDAre for the fourth quarter and full year of 2023 is also 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 December 31, 2024, with the exception of The Confidante Miami Beach due to its renovation activity during the fourth quarters and full years of 2024 and 2023. Amounts included in this presentation for the Hyatt Regency San Antonio Riverwalk, acquired by the Company in April 2024, include both prior ownership results and the Company's results. The Company obtained prior ownership information from the previous owner of the Hyatt Regency San Antonio Riverwalk during the due diligence period before acquiring the hotel. The Company performed a limited review of the information as part of its analysis of the acquisition.

(3)	Comparable Portfolio consists of all hotels owned by the Company as of December 31, 2024, and includes prior ownership information for the Hyatt Regency San Antonio Riverwalk as discussed in Note 2.

(4)	Prior Ownership includes results for the Hyatt Regency San Antonio Riverwalk prior to the Company’s acquisition of the hotel in April 2024 as discussed in Note 2.

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

(6)	Actual Portfolio includes results for the 15 hotels owned by the Company during the fourth quarters and full years of 2024 and 2023.


PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS								Page 23