DIAMONDROCK HOSPITALITY COMPANY REPORTS FOURTH QUARTER AND FULL YEAR 2023 RESULTS

About this update from Diamondrock Hospitality Company

Comparable Full Year Total Revenues 4.0% Above 2022 and 11.3% Above 2019 Provides 2024 Outlook BETHESDA, Md. , Feb. 22, 2024 /PRNewswire/ -- DiamondRock Hospitality Company (the "Company") (NYSE: DRH), a lodging-focused real estate investment trust that owns a portfolio of 36 premium hotels and resorts in the United States , today announced results of operations for the quarter and year ended December 31, 2023 . Fourth Quarter 2023 Highlights Net Income: Net income was $11.0 million and earnings per diluted share was $0.04 . Comparable Revenues: Comparable total revenues were $261.3 million , a 0.4% increase over 2022 and a 10.1% increase over 2019. Comparable RevPAR: Comparable RevPAR was $193.69 , a 0.6% decrease from 2022 and a 6.1% increase over 2019. Comparable Hotel Adjusted EBITDA : Comparable Hotel Adjusted EBITDA was $64.6 million , a 16.5% decrease from 2022 and a 2.1% decrease from 2019. Comparable Hotel Adjusted EBITDA Margin : Comparable Hotel Adjusted EBITDA margin was 24.71%, a 505 basis point decrease from 2022 and a 309 basis point decrease from 2019. Adjusted EBITDA: Adjusted EBITDA was $57.3 million , a 15.0% decrease from 2022 and a 8.6% decrease from 2019. Adjusted FFO: Adjusted FFO was $38.6 million and Adjusted FFO per diluted share was $0.18 . Full Year 2023 Highlights Net Income: Net income was $86.6 million and earnings per diluted share was $0.36 . Comparable Revenues: Comparable total revenues were $1.1 billion , a 4.0% increase over 2022 and a 11.3% increase over 2019. Comparable RevPAR: Comparable RevPAR was $203.41 , a 3.1% increase over 2022 and a 8.7% increase over 2019. Comparable Hotel Adjusted EBITDA : Comparable Hotel Adjusted EBITDA was $302.6 million , a 6.2% decrease from 2022 and a 6.6% increase over 2019. Comparable Hotel Adjusted EBITDA Margin : Comparable Hotel Adjusted EBITDA margin was 28.14%, a 306 basis point decrease from 2022 and a 122 basis point decrease from 2019. Adjusted EBITDA: Adjusted EBITDA was $271.7 million , a 3.2% decrease from 2022 and a 4.3% increase over 2019. Adjusted FFO: Adjusted FFO was $198.5 million and Adjusted FFO per diluted share was $0.93 . Hotel Acquisition : The Company acquired Chico Hot Springs Resort located in Paradise Valley, Montana for $33.0 million on August 1, 2023 . Share Repurchases : The Company repurchased 318,454 shares of its common stock at an average price of $7.60 per share for a total purchase price of $2.4 million during the year. Hotel Rebranding : The Company completed the rebranding of the Hilton Boston Downtown/Faneuil Hall to The Dagny Boston, an independent lifestyle boutique hotel, on August 1, 2023 . "DiamondRock's unique strategy led to record hotel revenues in 2023 with 4% revenue growth and positions the Company well going forward. We enter 2024 with group revenue pace up a strong 21% as a result of a favorable geographic footprint," stated Mark Brugger , President and Chief Executive Officer of DiamondRock Hospitality Company . Mr. Brugger added, "We are also pleased to reintroduce guidance for the first time in four years as visibility on the economy and lodging fundamentals has improved." Operating Results Please see "Non-GAAP Financial Measures" attached to this press release for an explanation of the terms "EBITDAre," "Adjusted EBITDA," " Hotel Adjusted EBITDA ," " Hotel Adjusted EBITDA Margin ," "FFO" and "Adjusted FFO" and a reconciliation of these measures to net income. Comparable operating results include all hotels currently owned for all periods presented, except the Kimpton Fort Lauderdale Beach Resort , which opened in April 2021 . See "Reconciliation of Comparable Operating Results" attached to this press release for a reconciliation to historical amounts. Quarter Ended December 31 , Change From 2023 2022 2019 2022 2019 ($ amounts in millions, except hotel statistics and per share amounts) Comparable Operating Results (1) ADR $ 283.50 $ 289.83 $ 243.26 (2.2) % 16.5 % Occupancy 68.3 % 67.2 % 75.1 % 1.1 % (6.8) % RevPAR $ 193.69 $ 194.91 $ 182.59 (0.6) % 6.1 % Total RevPAR $ 294.45 $ 293.70 $ 268.71 0.3 % 9.6 % Revenues $ 261.3 $ 260.2 $ 237.4 0.4 % 10.1 % Hotel Adjusted EBITDA $ 64.6 $ 77.4 $ 66.0 (16.5) % (2.1) % Hotel Adjusted EBITDA Margin 24.71 % 29.76 % 27.80 % (505 bps) (309 bps) Available Rooms 887,428 885,776 883,660 1,652 3,768 Actual Operating Results (2) Revenues $ 263.5 $ 255.1 $ 237.5 3.3 % 10.9 % Net income $ 11.0 $ 18.4 $ 134.6 (40.2) % (91.8) % Earnings per diluted share $ 0.04 $ 0.07 $ 0.66 (42.9) % (93.9) % Adjusted EBITDA $ 57.3 $ 67.4 $ 62.7 (15.0) % (8.6) % Adjusted FFO $ 38.6 $ 48.0 $ 54.7 (19.6) % (29.4) % Adjusted FFO per diluted share $ 0.18 $ 0.23 $ 0.27 (21.7) % (33.3) % Year Ended December 31 , Change From 2023 2022 2019 2022 2019 ($ amounts in millions, except hotel statistics and per share amounts) Comparable Operating Results (1) ADR $ 282.02 $ 288.78 $ 240.76 (2.3) % 17.1 % Occupancy 72.1 % 68.3 % 77.7 % 3.8 % (5.6) % RevPAR $ 203.41 $ 197.36 $ 187.17 3.1 % 8.7 % Total RevPAR $ 305.72 $ 294.45 $ 275.71 3.8 % 10.9 % Revenues $ 1,075.4 $ 1,033.9 $ 966.3 4.0 % 11.3 % Hotel Adjusted EBITDA $ 302.6 $ 322.6 $ 283.8 (6.2) % 6.6 % Hotel Adjusted EBITDA Margin 28.14 % 31.20 % 29.36 % (306 bps) (122 bps) Available Rooms 3,517,519 3,511,184 3,504,785 6,335 12,734 Actual Operating Results (2) Revenues $ 1,074.9 $ 1,001.5 $ 938.1 7.3 % 14.6 % Net income $ 86.6 $ 109.7 $ 184.2 (21.1) % (53.0) % Earnings per diluted share $ 0.36 $ 0.47 $ 0.90 (23.4) % (60.0) % Adjusted EBITDA $ 271.7 $ 280.6 $ 260.4 (3.2) % 4.3 % Adjusted FFO $ 198.5 $ 215.9 $ 217.0 (8.1) % (8.5) % Adjusted FFO per diluted share $ 0.93 $ 1.01 $ 1.07 (7.9) % (13.1) % (1) Amounts represent the pre-acquisition operating results for Bourbon Orleans Hotel from January 1, 2019 to July 28, 2021 , Henderson Park Inn from January 1, 2019 to July 29, 2021 , Henderson Beach Resort from January 1, 2019 to December 22, 2021 , Tranquility Bay Beachfront Resort from January 1, 2019 to January 5, 2022 , Lake Austin Spa Resort from January 1, 2019 to November 20, 2022 Chico Hot Springs Resort from January 1, 2019 to July 31, 2023 and exclude the operating results of the Kimpton Fort Lauderdale Beach Resort as the hotel opened in April 2021 . The pre-acquisition operating results were obtained from the sellers of the hotels during the acquisition due diligence process. We have made no adjustments to the amounts provided to us by the seller. The pre-acquisition operating results were not audited or reviewed by the Company's independent auditors. (2) Actual operating results include the operating results of all hotels for the Company's respective ownership periods. Hotel Acquisition On August 1, 2023 , the Company acquired the fee-simple interest in Chico Hot Springs Resort , a lifestyle resort, and adjacent ranch in Paradise Valley, Montana and near Yellowstone National Park for $33 million . The $27 million purchase price for the 117-room, 153-acre resort represents an 8.1% capitalization rate on 2022 net operating income ("NOI"). The adjacent ranch, a 595-acre parcel purchased for approximately $6 million , provides extensive on-site trails for hiking and horseback riding as well as potential for future expansion of the resort or residential lot sales. The acquisition was funded from corporate cash on hand. Share Repurchase Program During the year ended December 31, 2023 , the Company repurchased 318,454 shares of its common stock at an average price of $7.60 per share for a total purchase price of $2.4 million . Since October 2022 , the Company has repurchased 1.9 million shares of it common stock at an average price of $7.77 per share. Capital Expenditures The Company invested approximately $86.3 million in capital improvements at its hotels during the year ended December 31, 2023 . Significant projects in 2023 include the following: The Dagny Boston : The Company completed a comprehensive renovation to rebrand the Hilton Boston Downtown/Faneuil Hall as The Dagny Boston, an independent lifestyle hotel, during the third quarter of 2023. Salt Lake City Marriott : The Company completed a renovation of the guestrooms during the third quarter of 2023. The Company expects to spend approximately $100 million in capital improvements at its hotels in 2024, which includes the completion of certain projects that commenced in 2023. Significant projects in 2024 include the following: Westin San Diego Bayview : In late 2023, the Company commenced a comprehensive renovation of the hotel's guestrooms, which is expected to be completed in the second quarter of 2024. Hilton Burlington Lake Champlain : In 2023, the Company commenced a repositioning of the hotel to rebrand it as a Curio Collection by Hilton hotel. The repositioning is expected to be completed in the summer of 2024 and includes a new restaurant concept by a well-known, award-winning chef. Bourbon Orleans Hotel : The Company expects to reposition and rebrand the hotel during 2024 to capture rate potential against the luxury and lifestyle competitive sets. Orchards Inn Sedona : The Company expects to commence a repositioning of Orchards Inn as the Cliffs at L'Auberge. The project will integrate the hotel with the adjacent L'Auberge de Sedona and include construction of a new pool connecting the two properties, renovation of the guestrooms and creation of a new arrival experience and new outdoor event space. The project is expected to be completed in 2025. The Landing Lake Tahoe Resort and Spa : The Company expects to commence a renovation of the property to accommodate 14 new keys and construct an adjacent indoor/outdoor event space to be completed in 2025. Balance Sheet and Liquidity The Company ended the year with $623.5 million of liquidity, comprised of $121.6 million of unrestricted corporate cash, $101.9 million of unrestricted cash at its hotels and full capacity on its $400 million senior unsecured credit facility. As of December 31, 2023 , the Company had $1.2 billion of total debt outstanding, which consisted of $800.0 million of unsecured term loans and $378.2 million of property-specific, non-recourse mortgage debt. Dividends The Company declared a quarterly cash dividend of $0.03 per common share, which was was paid on January 11, 2024 to shareholders of record as of December 29, 2023 . The Company paid a quarterly dividend of $0.515625 per share on its 8.250% Series A Cumulative Redeemable Preferred Stock on December 29, 2023 to shareholders of record as of December 19, 2023 . Guidance The Company is providing annual guidance for 2024, but does not undertake to update it for any developments in its business. Achievement of the anticipated results is subject to the risks disclosed in the Company's filings with the U.S. Securities and Exchange Commission . The Company expects full year 2024 results to be as follows: Metric Low End High End Comparable RevPAR Growth 2.0 % 4.0 % Adjusted EBITDA $260 million $290 million Adjusted FFO $187 million $217 million Adjusted FFO per share (based on 213.5 million diluted shares) $0.88 per share $1.02 per share The guidance above incorporates the following assumptions: Corporate expenses of $33.0 million to $34.0 million ; Interest expense of $61.2 million to $63.2 million ; Income tax expense of zero to $2.0 million ; and 3,571,062 available rooms. Earnings Call The Company will host a conference call to discuss its fourth quarter and full year results on Friday, February 23, 2024 , at 11:00 a.m. Eastern Time (ET). The conference call will be accessible by telephone and through the internet. Interested individuals are requested to register for the call by visiting https://investor.drhc.com . A replay of the conference call webcast will be archived and available online. About the Company DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in leisure destinations and top gateway markets. The Company currently owns 36 premium quality hotels with over 9,700 rooms. The Company has strategically positioned its portfolio to be operated both under leading global brand families as well as independent boutique hotels in the lifestyle segment. For further information on the Company and its portfolio, please visit DiamondRock Hospitality Company's website at www.drhc.com . This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as "believe," "expect," "intend," "project," "forecast," "plan" and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: the adverse impact of the novel coronavirus (COVID-19) on the U.S. , regional and global economies, travel, the hospitality industry, and the financial condition and results of operations of the Company and its hotels; national and local economic and business conditions, including the potential for additional terrorist attacks, that will affect occupancy rates at the Company's hotels and the demand for hotel products and services; operating risks associated with the hotel business; relationships with property managers; the ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; changes in travel patterns, taxes and government regulations which influence or determine wages, prices, construction procedures and costs; and other risk factors contained in the Company's filings with the Securities and Exchange Commission . Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of the date of this release, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations. DIAMONDROCK HOSPITALITY COMPANY CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) December 31, 2023 December 31, 2022 ASSETS (unaudited) Property and equipment, net $ 2,755,195 $ 2,748,476 Right-of-use assets 97,692 99,047 Restricted cash 45,576 39,614 Due from hotel managers 144,689 176,708 Prepaid and other assets 73,940 76,131 Cash and cash equivalents 121,595 67,564 Total assets $ 3,238,687 $ 3,207,540 LIABILITIES AND EQUITY Liabilities: Debt, net of unamortized debt issuance costs 1,177,005 1,185,793 Lease liabilities 112,866 110,875 Due to hotel managers 116,522 123,682 Deferred rent 69,209 65,097 Unfavorable contract liabilities, net 59,866 61,069 Accounts payable and accrued expenses 39,563 43,120 Distributions declared and unpaid 6,324 12,946 Deferred income related to key money, net 8,349 8,780 Total liabilities 1,589,704 1,611,362 Equity: Preferred stock, $0.01 par value; 10,000,000 shares authorized; 8.250% Series A Cumulative Redeemable Preferred Stock (liquidationpreference $25.00 per share), 4,760,000 shares issued and outstandingat December 31, 2023 and 2022 48 48 Common stock, $0.01 par value; 400,000,000 shares authorized; 209,627,197and 209,374,830 shares issued and outstanding at December 31, 2023 and 2022, respectively 2,096 2,094 Additional paid-in capital 2,291,297 2,288,433 Accumulated other comprehensive income (2,036) — Distributions in excess of earnings (649,330) (700,694) Total stockholders' equity 1,642,075 1,589,881 Noncontrolling interests 6,908 6,297 Total equity 1,648,983 1,596,178 Total liabilities and equity $ 3,238,687 $ 3,207,540 DIAMONDROCK HOSPITALITY COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) (unaudited) Three Months Ended December 31 , Year Ended December 31 , 2023 2022 2023 2022 Revenues: Rooms $ 173,122 $ 171,080 $ 717,447 $ 681,269 Food and beverage 66,888 61,940 259,757 238,234 Other 23,537 22,035 97,663 82,000 Total revenues 263,547 255,055 1,074,867 1,001,503 Operating Expenses: Rooms 45,673 42,688 176,765 163,062 Food and beverage 46,060 43,703 180,546 163,622 Other departmental and support expenses 68,171 63,363 261,536 233,691 Management fees 5,802 6,410 24,998 23,439 Franchise fees 9,345 9,471 35,738 32,683 Other property-level expenses 25,422 16,261 102,177 80,258 Depreciation and amortization 28,307 27,752 111,302 108,849 Impairment losses — — 941 2,843 Corporate expenses 8,371 9,515 32,048 31,790 Business interruption insurance income — — (647) (499) Total operating expenses, net 237,151 219,163 925,404 839,738 Interest expense 16,360 15,417 65,072 38,283 Interest (income) and other (income) expense, net (844) 360 (2,561) 1,404 Loss on early extinguishment of debt — 68 — 9,766 Total other expenses, net 15,516 15,845 62,511 49,453 Income before income taxes 10,880 20,047 86,952 112,312 Income tax benefit (expense) 103 (1,658) (317) (2,607) Net income 10,983 18,389 86,635 109,705 Less: Net income attributable to noncontrolling interests (36) (62) (295) (377) Net income attributable to the Company 10,947 18,327 86,340 109,328 Distributions to preferred stockholders (2,454) (2,454) (9,817) (9,817) Net income attributable to common stockholders $ 8,493 $ 15,873 $ 76,523 $ 99,511 Earnings per share: Earnings per share available to common stockholders - basic $ 0.04 $ 0.08 $ 0.36 $ 0.47 Earnings per share available to common stockholders - diluted $ 0.04 $ 0.07 $ 0.36 $ 0.47 Weighted-average number of common shares outstanding: Basic 211,498,736 211,497,277 211,518,826 212,423,873 Diluted 212,578,308 212,439,150 212,304,117 213,188,987 Non-GAAP Financial Measures We use the following non-GAAP financial measures that we believe are useful to investors as key measures of our operating performance: EBITDA, EBITDAre, Adjusted EBITDA, Hotel Adjusted EBITDA , FFO and Adjusted FFO. These measures should not be considered in isolation or as a substitute for measures of performance in accordance with U.S. GAAP. EBITDA, EBITDAre, Adjusted EBITDA, Hotel Adjusted EBITDA , FFO and Adjusted FFO, as calculated by us, may not be comparable to other companies that do not define such terms exactly as the Company. Use and Limitations of Non-GAAP Financial Measures Our management and Board of Directors use EBITDA, EBITDAre, Adjusted EBITDA, Hotel Adjusted EBITDA , FFO and Adjusted FFO to evaluate the performance of our hotels and to facilitate comparisons between us and other lodging REITs, hotel owners who are not REITs and other capital intensive companies. The use of these non-GAAP financial measures has certain limitations. These non-GAAP financial measures as presented by us, may not be comparable to non-GAAP financial measures as calculated by other real estate companies. These measures do not reflect certain expenses or expenditures that we incurred and will incur, such as depreciation, interest and capital expenditures. We compensate for these limitations by separately considering the impact of these excluded items to the extent they are material to operating decisions or assessments of our operating performance. Our reconciliations to the most comparable U.S. GAAP financial measures, and our consolidated statements of operations and comprehensive income and consolidated statements of cash flows, include interest expense, capital expenditures, and other excluded items, all of which should be considered when evaluating our performance, as well as the usefulness of our non-GAAP financial measures. These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with U.S. GAAP. They should not be considered as alternatives to operating profit, cash flow from operations, or any other operating performance measure prescribed by U.S. GAAP. These non-GAAP financial measures reflect additional ways of viewing our operations that we believe, when viewed with our U.S. GAAP results and the reconciliations to the corresponding U.S. 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. EBITDA and EBITDA re EBITDA represents net income (calculated in accordance with U.S. GAAP) excluding: (1) interest expense; (2) provision for income taxes, including income taxes applicable to sale of assets; and (3) depreciation and amortization. The Company computes EBITDAre in accordance with the National Association of Real Estate Investment Trusts ("Nareit") guidelines, as defined in its September 2017 white paper "Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate." EBITDAre represents net income (calculated in accordance with U.S. GAAP) adjusted for: (1) interest expense; (2) provision for income taxes, including income taxes applicable to sale of assets; (3) depreciation and amortization; (4) gains or losses on the disposition of depreciated property including gains or losses on change of control; (5) impairment write-downs of depreciated property and of investments in unconsolidated affiliates caused by a decrease in value of depreciated property in the affiliate; and (6) adjustments to reflect the entity's share of EBITDAre of unconsolidated affiliates. We believe EBITDA and EBITDAre are useful to an investor in evaluating our operating performance because they help investors evaluate and compare the results of our operations from period to period by removing the impact of our capital structure (primarily interest expense) and our asset base (primarily depreciation and amortization, and in the case of EBITDAre, impairment and gains or losses on dispositions of depreciated property) from our operating results. In addition, covenants included in our debt agreements use EBITDA as a measure of financial compliance. We also use EBITDA and EBITDAre as measures in determining the value of hotel acquisitions and dispositions. FFO The Company computes FFO in accordance with standards established by Nareit, which defines FFO as net income (calculated in accordance with U.S. GAAP) excluding gains or losses from sales of properties and impairment losses, plus real estate related depreciation and amortization. The Company believes that the presentation of FFO provides useful information to investors regarding its operating performance because it is a measure of the Company's operations without regard to specified non-cash items, such as real estate related depreciation and amortization and gains or losses on the sale of assets. The Company also uses FFO as one measure in assessing its operating results. Adjustments to EBITDAre and FFO We adjust EBITDAre and FFO when evaluating our 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 that the presentation of Adjusted EBITDA and Adjusted FFO when combined with U.S. GAAP net income, EBITDAre and FFO, is beneficial to an investor's complete understanding of our consolidated and property-level operating performance. We adjust EBITDAre and FFO for the following items: Non-Cash Lease Expense and Other Amortization: We exclude the non-cash expense incurred from the straight line recognition of expense from our ground leases and other contractual obligations and the non-cash amortization of our favorable and unfavorable contracts, originally recorded in conjunction with certain hotel acquisitions. We exclude these non-cash items because they do not reflect the actual cash amounts due to the respective lessors in the current period and they are of lesser significance in evaluating our actual performance for that period. Cumulative Effect of a Change in Accounting Principle: The Financial Accounting Standards Board promulgates new accounting standards that require or permit the consolidated statement of operations and comprehensive income to reflect the cumulative effect of a change in accounting principle. We exclude the effect of these adjustments, which include the accounting impact from prior periods, because they do not reflect the Company's actual underlying performance for the current period. Gains or Losses from Early Extinguishment of Debt: We exclude the effect of gains or losses recorded on the early extinguishment of debt because these gains or losses result from transaction activity related to the Company's capital structure that we believe are not indicative of the ongoing operating performance of the Company or our hotels. Hotel Acquisition Costs : We exclude hotel acquisition costs expensed during the period because we believe these transaction costs are not reflective of the ongoing performance of the Company or our hotels. Severance Costs: We exclude corporate severance costs, or reversals thereof, incurred with the termination of corporate-level employees and severance costs incurred at our hotels related to lease terminations or structured severance programs because we believe these costs do not reflect the ongoing performance of the Company or our hotels. Hotel Manager Transition Items : We exclude the transition items associated with a change in hotel manager because we believe these items do not reflect the ongoing performance of the Company or our hotels. Hotel Pre-Opening Costs : We exclude the pre-opening costs associated with the redevelopment or rebranding of a hotel because we believe these items do not reflect the ongoing performance of the Company or our hotels. Other Items: From time to time we incur costs or realize gains that we consider outside the ordinary course of business and that we do not believe reflect the ongoing performance of the Company or our hotels. Such items may include, but are not limited to the following: lease preparation costs incurred to prepare vacant space for marketing; management or franchise contract termination fees; gains or losses from legal settlements; costs incurred related to natural disasters; and gains on property insurance claim settlements, other than income related to business interruption insurance. In addition, to derive Adjusted FFO we exclude any unrealized fair value adjustments to interest rate swaps. We exclude these non-cash amounts because they do not reflect the underlying performance of the Company. Hotel Adjusted EBITDA We believe that Hotel Adjusted EBITDA provides our investors a useful financial measure to evaluate our hotel operating performance, excluding the impact of our capital structure (primarily interest), our asset base (primarily depreciation and amortization), and our corporate-level expenses. With respect to Hotel Adjusted EBITDA , we believe that excluding the effect of corporate-level expenses provides a more complete understanding of the operating results over which individual hotels and third-party management companies have direct control. We believe property-level results provide investors with supplemental information on the ongoing operational performance of our hotels and effectiveness of the third-party management companies operating our business on a property-level basis. Hotel Adjusted EBITDA margins are calculated as Hotel Adjusted EBITDA divided by total hotel revenues. Reconciliations of Non-GAAP Measures EBITDA, EBITDAre, Adjusted EBITDA and Hotel Adjusted EBITDA The following tables are reconciliations of our GAAP net income to EBITDA, EBITDAre and Adjusted EBITDA and Hotel Adjusted EBITDA (in thousands): Three Months Ended December 31 , 2023 2022 2019 Net income $ 10,983 $ 18,389 $ 134,583 Interest expense 16,360 15,417 8,320 Income tax (benefit) expense (103) 1,658 20,089 Real estate related depreciation and amortization 28,307 27,752 30,305 EBITDA 55,547 63,216 193,297 Loss on sale of hotel properties (1) — 1,659 — EBITDAre 55,547 64,875 193,297 Non-cash lease expense and other amortization 1,536 1,551 1,765 Professional fees and pre-opening costs related to Frenchman's Reef (2) — — 9,079 Hotel pre-opening costs 208 — — Hotel manager transition items — 916 2,708 Gain on property insurance settlement — — (144,192) Loss on early extinguishment of debt — 68 — Adjusted EBITDA 57,291 67,410 62,657 Corporate expenses 8,371 9,515 7,446 Interest (income) and other (income) expense, net (844) (1,299) (687) Hotel Adjusted EBITDA $ 64,818 $ 75,626 $ 69,416 Year Ended December 31 , 2023 2022 2019 Net income $ 86,635 $ 109,705 $ 184,211 Interest expense 65,072 38,283 46,584 Income tax expense 317 2,607 22,028 Real estate related depreciation and amortization 111,302 108,849 118,110 EBITDA 263,326 259,444 370,933 Impairment losses 941 2,843 — Loss on sale of hotel properties (1) — 1,659 — EBITDAre 264,267 263,946 370,933 Non-cash lease expense and other amortization 6,156 6,226 7,013 Professional fees and pre-opening costs related to Frenchman's Reef (2) — — 20,524 Gain on property insurance settlement — — (144,192) Loss on early extinguishment of debt — 9,766 2,373 Hotel pre-opening costs 1,246 — — Severance costs (3) — (532) — Hotel manager transition items — 1,164 3,758 Adjusted EBITDA 271,669 280,570 260,409 Corporate expenses 32,048 31,790 28,231 Interest (income) and other (income) expense, net (2,561) (255) (1,197) Hotel Adjusted EBITDA $ 301,156 $ 312,105 $ 287,443 (1) During the year ended December 31, 2022 , we recognized an incremental loss of $1.7 million due to post-closing adjustments related to hotels sold in 2021. (2) Represents pre-opening costs related to the re-opening of Frenchman's Reef, as well as legal and professional fees and other costs incurred at Frenchman's Reef as a result of Hurricane Irma that were not covered by insurance. (3) Consists of severance costs incurred, and adjustments thereto, associated with the elimination of positions at our hotels, which are classified within other hotel expenses on the consolidated statement of operations. Full Year 2024 Guidance Low End High End Net income $ 79,817 $ 111,817 Interest expense 63,183 61,183 Income tax expense — 2,000 Real estate related depreciation and amortization 110,000 108,000 EBITDA/EBITDAre 253,000 283,000 Non-cash lease expense and other amortization 6,200 6,200 Hotel pre-opening costs 800 800 Adjusted EBITDA $ 260,000 $ 290,000 FFO and Adjusted FFO The following tables are reconciliations of our GAAP net income to FFO and Adjusted FFO (in thousands): Three Months Ended December 31 , 2023 2022 2019 Net income $ 10,983 $ 18,389 $ 134,583 Real estate related depreciation and amortization 28,307 27,752 30,305 Loss on sale of hotel properties (1) — 1,659 — FFO 39,290 47,800 164,888 Distribution to preferred stockholders (2,454) (2,454) — FFO available to common stock and unit holders 36,836 45,346 164,888 Non-cash lease expense and other amortization 1,536 1,551 1,765 Professional fees and pre-opening costs related to Frenchman's Reef (2) — — 9,079 Gain on property insurance settlement, net of income tax — — (121,525) Loss on early extinguishment of debt — 68 — Hotel pre-opening costs 208 — — Hotel manager transition items — 916 2,708 Fair value adjustments to interest rate swaps — 88 (2,245) Adjusted FFO available to common stock and unit holders $ 38,580 $ 47,969 $ 54,670 Adjusted FFO available to common stock and unit holders, per diluted share $ 0.18 $ 0.23 $ 0.27 Year Ended December 31 , 2023 2022 2019 Net income $ 86,635 $ 109,705 $ 184,211 Real estate related depreciation and amortization 111,302 108,849 118,110 Impairment losses, net of tax 941 2,843 — Loss on sale of hotel properties (1) — 1,659 — FFO 198,878 223,056 302,321 Distribution to preferred stockholders (9,817) (9,817) — FFO available to common stock and unit holders 189,061 213,239 302,321 Non-cash lease expense and other amortization 6,156 6,226 7,013 Professional fees and pre-opening costs related to Frenchman's Reef (2) — — 20,524 Hotel pre-opening costs 1,246 — — Hotel manager transition items — 1,164 3,758 Gain on property insurance settlement, net of income tax — — (121,525) Loss on early extinguishment of debt — 9,766 2,373 Severance costs (3) — (532) — Fair value adjustments to interest rate swaps 2,033 (13,914) 2,545 Adjusted FFO available to common stock and unit holders $ 198,496 $ 215,949 $ 217,009 Adjusted FFO available to common stock and unit holders, per diluted share $ 0.93 $ 1.01 $ 1.07 (1) During the year ended December 31, 2022 , we recognized an incremental loss of $1.7 million due to post-closing adjustments related to hotels sold in 2021. (2) Represents pre-opening costs related to the re-opening of Frenchman's Reef, as well as legal and professional fees and other costs incurred at Frenchman's Reef as a result of Hurricane Irma that were not covered by insurance. (3) Consists of severance costs incurred, and adjustments thereto, associated with the elimination of positions at our hotels, which are classified within other hotel expenses on the consolidated statement of operations. Full Year 2024 Guidance Low End High End Net income $ 79,817 $ 111,817 Real estate related depreciation and amortization 110,000 108,000 FFO 189,817 219,817 Distribution to preferred stockholders (9,817) (9,817) FFO available to common stock and unit holders 180,000 210,000 Non-cash lease expense and other amortization 6,200 6,200 Hotel pre-opening costs 800 800 Adjusted FFO available to common stock and unit holders $ 187,000 $ 217,000 Adjusted FFO available to common stock and unit holders, per diluted share $ 0.88 $ 1.02 R econciliation of Comparable Operating Results The following presents the revenues, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA Margin together with comparable prior year results, which excludes the results for our 2021 dispositions (in thousands): Three Months Ended December 31 , 2023 2022 2019 Revenues $ 263,547 $ 255,055 $ 237,519 Hotel revenues from prior ownership (1) (2,247) 5,095 20,943 Hotel revenues from sold hotels (2) — — (21,013) Comparable Revenues $ 261,300 $ 260,150 $ 237,449 Hotel Adjusted EBITDA $ 64,818 $ 75,626 $ 69,416 Hotel Adjusted EBITDA from prior ownership (1) (239) 1,805 2,752 Hotel Adjusted EBITDA from sold hotels (2) — — (6,148) Comparable Hotel Adjusted EBITDA $ 64,579 $ 77,431 $ 66,020 Hotel Adjusted EBITDA Margin 24.59 % 29.65 % 29.23 % Comparable Hotel Adjusted EBITDA Margin 24.71 % 29.76 % 27.80 % Year Ended December 31 , 2023 2022 2019 Revenues $ 1,074,867 $ 1,001,503 $ 938,091 Hotel revenues from prior ownership (1) 520 32,372 97,106 Hotel revenues from sold hotels (2) — — (68,886) Comparable Revenues $ 1,075,387 $ 1,033,875 $ 966,311 Hotel Adjusted EBITDA $ 301,156 $ 312,105 $ 287,443 Hotel Adjusted EBITDA from prior ownership (1) 1,417 10,497 20,212 Hotel Adjusted EBITDA from sold hotels (2) — — (23,904) Comparable Hotel Adjusted EBITDA $ 302,573 $ 322,602 $ 283,751 Hotel Adjusted EBITDA Margin 28.02 % 31.16 % 30.64 % Comparable Hotel Adjusted EBITDA Margin 28.14 % 31.20 % 29.36 % (1) Amounts represent the pre-acquisition operating results for Bourbon Orleans Hotel from January 1, 2019 to July 28, 2021 , Henderson Park Inn from January 1, 2019 to July 29, 2021 , Henderson Beach Resort from January 1, 2019 to December 22, 2021 , Tranquility Bay Beachfront Resort from January 1, 2019 to January 5, 2022 , Lake Austin Spa Resort from January 1, 2019 to November 20, 2022 and Chico Hot Springs Resort from January 1, 2019 to July 31, 2023 . The pre-acquisition operating results of the Kimpton Fort Lauderdale Beach Resort are excluded from all periods as the hotel opened in April 2021 . The pre-acquisition operating results were obtained from the sellers of the hotels during the acquisition due diligence process. We have made no adjustments to the amounts provided to us by the seller. The pre-acquisition operating results were not audited or reviewed by the Company's independent auditors. (2) Amounts represent the operating results of Frenchman's Reef and The Lexington Hotel . Selected Quarterly Comparable Operating Information The following tables are presented to provide investors with selected quarterly comparable operating information. The operating information includes historical quarterly operating results for our portfolio, excluding the Kimpton Fort Lauderdale Beach Resort since the hotel opened in April 2021 . Quarter 1, 2019 Quarter 2, 2019 Quarter 3, 2019 Quarter 4, 2019 Full Year 2019 ADR $ 224.54 $ 253.23 $ 240.06 $ 243.26 $ 240.76 Occupancy 72.2 % 82.3 % 81.3 % 75.1 % 77.7 % RevPAR $ 162.14 $ 208.45 $ 195.19 $ 182.59 $ 187.17 Total RevPAR $ 247.08 $ 306.77 $ 280.00 $ 268.71 $ 275.71 Revenues (in thousands) $ 213,429 $ 268,008 $ 247,425 $ 237,449 $ 966,311 Hotel Adjusted EBITDA (in thousands) $ 52,197 $ 91,004 $ 74,530 $ 66,020 $ 283,751 Hotel Adjusted EBITDA Margin 24.46 % 33.96 % 30.12 % 27.80 % 29.36 % Available Rooms 863,804 873,661 883,660 883,660 3,504,785 Quarter 1, 2022 Quarter 2, 2022 Quarter 3, 2022 Quarter 4, 2022 Full Year 2022 ADR $ 281.93 $ 299.28 $ 282.49 $ 289.83 $ 288.78 Occupancy 56.0 % 74.8 % 75.1 % 67.2 % 68.3 % RevPAR $ 157.86 $ 223.81 $ 212.27 $ 194.91 $ 197.36 Total RevPAR $ 239.15 $ 331.55 $ 312.57 $ 293.70 $ 294.45 Revenues (in thousands) $ 206,858 $ 290,093 $ 276,774 $ 260,150 $ 1,033,875 Hotel Adjusted EBITDA (in thousands) $ 53,958 $ 104,378 $ 86,835 $ 77,431 $ 322,602 Hotel Adjusted EBITDA Margin 26.08 % 35.98 % 31.37 % 29.76 % 31.20 % Available Rooms 864,972 874,970 885,466 885,776 3,511,184 Quarter 1, 2023 Quarter 2, 2023 Quarter 3, 2023 Quarter 4, 2023 Full Year 2023 ADR $ 276.48 $ 293.44 $ 274.00 $ 283.50 $ 282.02 Occupancy 66.7 % 76.7 % 76.7 % 68.3 % 72.1 % RevPAR $ 184.39 $ 225.09 $ 210.03 $ 193.69 $ 203.41 Total RevPAR $ 281.32 $ 334.17 $ 312.35 $ 294.45 $ 305.72 Revenues (in thousands) $ 243,859 $ 293,088 $ 277,140 $ 261,300 $ 1,075,387 Hotel Adjusted EBITDA (in thousands) $ 62,450 $ 94,426 $ 81,118 $ 64,579 $ 302,573 Hotel Adjusted EBITDA Margin 25.61 % 32.22 % 29.27 % 24.71 % 28.14 % Available Rooms 866,486 876,694 886,911 887,428 3,517,519 Market Capitalization as of December 31, 2023 (in thousands) Enterprise Value Common equity capitalization (at December 31, 2023 closing price of $9.39 /share) $ 2,006,988 Preferred equity capitalization (at liquidation value of $25.00 /share) 119,000 Consolidated debt (face amount) 1,178,189 Cash and cash equivalents (121,595) Total enterprise value $ 3,182,582 Share Reconciliation Common shares outstanding 209,627 Operating partnership units 1,037 Unvested restricted stock held by management and employees 1,201 Share grants under deferred compensation plan 1,872 Combined shares and units 213,737 Debt Summary as of December 31, 2023 (dollars in thousands) Loan Interest Rate Term OutstandingPrincipal Maturity Courtyard New York Manhattan / Midtown East 4.40 % Fixed $ 74,346 August 2024 Worthington Renaissance Fort Worth Hotel 3.66 % Fixed 73,727 May 2025 Hotel Clio 4.33 % Fixed 56,091 July 2025 Westin Boston Seaport District 4.36 % Fixed 174,025 November 2025 Unsecured term loan SOFR + 1.35% (1) Variable 500,000 January 2028 Unsecured term loan SOFR + 1.35% (1) Variable 300,000 January 2025 (2) Senior unsecured credit facility SOFR + 1.40% Variable — September 2026 (2) Unamortized debt issuance costs (3) (1,184) Debt, net of unamortized debt issuance costs 1,177,005 Weighted-average interest rate of fixed rate debt 4.09 % Total weighted-average interest rate (4) 5.22 % (1) Interest rate as of December 31, 2023 was 6.81%. (2) Maturity date may be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions. (3) Excludes debt issuance costs related to our senior unsecured credit facility, which are included within Other Assets on the accompanying consolidated balance sheet. (4) Weighted-average interest rate includes effect of interest rate swaps. Operating Statistics – Fourth Quarter Number ofRooms ADR Occupancy RevPAR 4Q 2023 4Q 2022 B/(W) 2022 4Q 2023 4Q 2022 B/(W) 2022 4Q 2023 4Q 2022 B/(W) 2022 Atlanta Marriott Alpharetta 318 $ 159.19 $ 148.40 7.3 % 57.4 % 59.5 % (2.1) % $ 91.42 $ 88.25 3.6 % Bourbon Orleans Hotel 220 $ 254.80 $ 248.34 2.6 % 71.7 % 85.5 % (13.8) % $ 182.57 $ 212.25 (14.0) % Cavallo Point , The Lodge at the Golden Gate 142 $ 595.48 $ 657.57 (9.4) % 54.1 % 49.6 % 4.5 % $ 322.08 $ 326.02 (1.2) % Chicago Marriott Downtown Magnificent Mile 1,200 $ 248.64 $ 244.72 1.6 % 55.9 % 56.5 % (0.6) % $ 138.90 $ 138.33 0.4 % Chico Hot Springs Resort & Day Spa 117 $ 183.22 $ 178.60 2.6 % 56.8 % 59.9 % (3.1) % $ 104.05 $ 107.05 (2.8) % Courtyard Denver Downtown 177 $ 203.58 $ 193.56 5.2 % 65.8 % 71.5 % (5.7) % $ 133.97 $ 138.40 (3.2) % Courtyard New York Manhattan/Fifth Avenue 189 $ 346.88 $ 349.45 (0.7) % 95.8 % 97.3 % (1.5) % $ 332.38 $ 339.90 (2.2) % Courtyard New York Manhattan/ Midtown East 321 $ 424.16 $ 402.88 5.3 % 92.0 % 91.3 % 0.7 % $ 390.33 $ 368.00 6.1 % Embassy Suites by Hilton Bethesda 272 $ 164.99 $ 142.39 15.9 % 68.6 % 62.1 % 6.5 % $ 113.20 $ 88.41 28.0 % Havana Cabana Key West 106 $ 285.15 $ 293.06 (2.7) % 80.2 % 77.5 % 2.7 % $ 228.69 $ 227.07 0.7 % Henderson Beach Resort 255 $ 313.74 $ 369.73 (15.1) % 37.4 % 39.4 % (2.0) % $ 117.44 $ 145.78 (19.4) % Henderson Park Inn 37 $ 490.86 $ 543.39 (9.7) % 65.0 % 59.5 % 5.5 % $ 318.83 $ 323.26 (1.4) % Hilton Burlington Lake Champlain 258 $ 237.78 $ 243.82 (2.5) % 74.1 % 70.8 % 3.3 % $ 176.23 $ 172.58 2.1 % Hilton Garden Inn New York/Times Square Central 282 $ 338.43 $ 356.84 (5.2) % 97.4 % 98.3 % (0.9) % $ 329.68 $ 350.75 (6.0) % Hotel Clio 199 $ 294.92 $ 300.50 (1.9) % 74.0 % 70.1 % 3.9 % $ 218.31 $ 210.55 3.7 % Hotel Emblem San Francisco 96 $ 198.08 $ 212.07 (6.6) % 62.2 % 69.0 % (6.8) % $ 123.24 $ 146.40 (15.8) % Kimpton Hotel Palomar Phoenix 242 $ 222.15 $ 240.63 (7.7) % 76.2 % 59.5 % 16.7 % $ 169.22 $ 143.22 18.2 % Kimpton Shorebreak Fort Lauderdale Beach Resort 96 $ 194.74 $ 222.36 (12.4) % 72.1 % 65.8 % 6.3 % $ 140.34 $ 146.25 (4.0) % Kimpton Shorebreak Huntington Beach Resort 157 $ 278.33 $ 307.10 (9.4) % 83.7 % 77.5 % 6.2 % $ 232.99 $ 238.02 (2.1) % L'Auberge de Sedona 88 $ 976.16 $ 1,091.78 (10.6) % 71.0 % 67.9 % 3.1 % $ 693.17 $ 741.43 (6.5) % Lake Austin Spa Resort 40 $ 1,048.17 $ 1,143.94 (8.4) % 58.3 % 66.6 % (8.3) % $ 610.67 $ 761.90 (19.8) % Margaritaville Beach House Key West 186 $ 380.73 $ 379.48 0.3 % 77.9 % 70.0 % 7.9 % $ 296.54 $ 265.72 11.6 % Orchards Inn Sedona 70 $ 328.61 $ 319.54 2.8 % 61.0 % 66.9 % (5.9) % $ 200.43 $ 213.76 (6.2) % Salt Lake City Marriott Downtown at City Creek 510 $ 174.37 $ 174.07 0.2 % 60.6 % 57.2 % 3.4 % $ 105.72 $ 99.54 6.2 % The Dagny Boston 403 $ 243.15 $ 299.79 (18.9) % 86.2 % 73.9 % 12.3 % $ 209.62 $ 221.67 (5.4) % The Gwen 311 $ 291.32 $ 301.01 (3.2) % 74.3 % 75.0 % (0.7) % $ 216.48 $ 225.70 (4.1) % The Hythe Vail 344 $ 443.41 $ 490.05 (9.5) % 42.4 % 42.6 % (0.2) % $ 187.87 $ 208.62 (9.9) % The Landing Lake Tahoe Resort & Spa 82 $ 367.30 $ 434.09 (15.4) % 46.7 % 37.8 % 8.9 % $ 171.38 $ 164.11 4.4 % The Lindy Renaissance Charleston Hotel 167 $ 332.83 $ 367.50 (9.4) % 87.1 % 81.5 % 5.6 % $ 289.77 $ 299.40 (3.2) % The Lodge at Sonoma Resort 182 $ 438.25 $ 458.72 (4.5) % 52.9 % 60.2 % (7.3) % $ 231.63 $ 276.15 (16.1) % Tranquility Bay Beachfront Resort 103 $ 560.50 $ 598.88 (6.4) % 74.0 % 65.5 % 8.5 % $ 414.99 $ 392.16 5.8 % Westin Boston Waterfront 793 $ 258.04 $ 246.54 4.7 % 71.8 % 74.8 % (3.0) % $ 185.18 $ 184.34 0.5 % Westin Fort Lauderdale Beach Resort 433 $ 235.79 $ 259.28 (9.1) % 76.9 % 66.1 % 10.8 % $ 181.42 $ 171.44 5.8 % Westin San Diego Bayview 436 $ 224.65 $ 194.75 15.4 % 65.0 % 69.0 % (4.0) % $ 146.08 $ 134.45 8.7 % Westin Washington D.C. City Center 410 $ 227.50 $ 225.07 1.1 % 64.6 % 63.8 % 0.8 % $ 146.92 $ 143.63 2.3 % Worthington Renaissance Fort Worth Hotel 504 $ 208.37 $ 195.60 6.5 % 69.9 % 71.5 % (1.6) % $ 145.65 $ 139.84 4.2 % Comparable Total (1) 9,650 $ 283.50 $ 289.83 (2.2) % 68.3 % 67.2 % 1.1 % $ 193.69 $ 194.91 (0.6) % (1) Amounts include the pre-acquisition operating results of hotels acquired in 2023 and 2022 and exclude the Kimpton Fort Lauderdale Beach Resort as the hotel opened during 2021. Operating Statistics – Fourth Quarter Numberof Rooms ADR Occupancy RevPAR 4Q 2023 4Q 2019 B/(W) 2019 4Q 2023 4Q 2019 B/(W) 2019 4Q 2023 4Q 2019 B/(W) 2019 Atlanta Marriott Alpharetta 318 $ 159.19 $ 160.31 (0.7) % 57.4 % 65.9 % (8.5) % $ 91.42 $ 105.72 (13.5) % Bourbon Orleans Hotel 220 $ 254.80 $ 224.82 13.3 % 71.7 % 80.5 % (8.8) % $ 182.57 $ 181.06 0.8 % Cavallo Point , The Lodge at the Golden Gate 142 $ 595.48 $ 490.30 21.5 % 54.1 % 63.5 % (9.4) % $ 322.08 $ 311.28 3.5 % Chicago Marriott Downtown Magnificent Mile 1,200 $ 248.64 $ 231.59 7.4 % 55.9 % 74.0 % (18.1) % $ 138.90 $ 171.27 (18.9) % Chico Hot Springs Resort & Day Spa 117 $ 183.22 $ 146.28 25.3 % 56.8 % 68.8 % (12.0) % $ 104.05 $ 100.65 3.4 % Courtyard Denver Downtown 177 $ 203.58 $ 189.47 7.4 % 65.8 % 70.7 % (4.9) % $ 133.97 $ 133.97 — % Courtyard New York Manhattan/Fifth Avenue 189 $ 346.88 $ 289.47 19.8 % 95.8 % 92.1 % 3.7 % $ 332.38 $ 266.52 24.7 % Courtyard New York Manhattan/ Midtown East 321 $ 424.16 $ 310.44 36.6 % 92.0 % 97.5 % (5.5) % $ 390.33 $ 302.61 29.0 % Embassy Suites by Hilton Bethesda 272 $ 164.99 $ 171.89 (4.0) % 68.6 % 71.4 % (2.8) % $ 113.20 $ 122.69 (7.7) % Havana Cabana Key West 106 $ 285.15 $ 212.18 34.4 % 80.2 % 88.1 % (7.9) % $ 228.69 $ 186.96 22.3 % Henderson Beach Resort 255 $ 313.74 $ 236.89 32.4 % 37.4 % 37.4 % — % $ 117.44 $ 88.71 32.4 % Henderson Park Inn 37 $ 490.86 $ 397.77 23.4 % 65.0 % 65.7 % (0.7) % $ 318.83 $ 261.29 22.0 % Hilton Burlington Lake Champlain 258 $ 237.78 $ 181.60 30.9 % 74.1 % 79.2 % (5.1) % $ 176.23 $ 143.81 22.5 % Hilton Garden Inn New York/Times Square Central 282 $ 338.43 $ 311.91 8.5 % 97.4 % 99.1 % (1.7) % $ 329.68 $ 309.21 6.6 % Hotel Clio 199 $ 294.92 $ 239.49 23.1 % 74.0 % 77.0 % (3.0) % $ 218.31 $ 184.42 18.4 % Hotel Emblem San Francisco 96 $ 198.08 $ 244.13 (18.9) % 62.2 % 84.0 % (21.8) % $ 123.24 $ 204.96 (39.9) % Kimpton Hotel Palomar Phoenix 242 $ 222.15 $ 192.45 15.4 % 76.2 % 82.8 % (6.6) % $ 169.22 $ 159.40 6.2 % Kimpton Shorebreak Huntington Beach Resort 157 $ 278.33 $ 229.55 21.3 % 83.7 % 68.2 % 15.5 % $ 232.99 $ 156.62 48.8 % L'Auberge de Sedona 88 $ 976.16 $ 724.32 34.8 % 71.0 % 76.5 % (5.5) % $ 693.17 $ 553.98 25.1 % Lake Austin Spa Resort 40 $ 1,048.17 $ 757.02 38.5 % 58.3 % 58.0 % 0.3 % $ 610.67 $ 438.99 39.1 % Margaritaville Beach House Key West 186 $ 380.73 $ 262.62 45.0 % 77.9 % 57.9 % 20.0 % $ 296.54 $ 152.03 95.1 % Orchards Inn Sedona 70 $ 328.61 $ 268.22 22.5 % 61.0 % 69.4 % (8.4) % $ 200.43 $ 186.13 7.7 % Salt Lake City Marriott Downtown at City Creek 510 $ 174.37 $ 168.38 3.6 % 60.6 % 65.5 % (4.9) % $ 105.72 $ 110.37 (4.2) % The Dagny Boston 403 $ 243.15 $ 278.31 (12.6) % 86.2 % 87.3 % (1.1) % $ 209.62 $ 243.07 (13.8) % The Gwen 311 $ 291.32 $ 265.22 9.8 % 74.3 % 83.9 % (9.6) % $ 216.48 $ 222.61 (2.8) % The Hythe Vail 344 $ 443.41 $ 342.90 29.3 % 42.4 % 51.5 % (9.1) % $ 187.87 $ 176.63 6.4 % The Landing Lake Tahoe Resort & Spa 82 $ 367.30 $ 327.30 12.2 % 46.7 % 50.9 % (4.2) % $ 171.38 $ 166.60 2.9 % The Lindy Renaissance Charleston Hotel 167 $ 332.83 $ 272.57 22.1 % 87.1 % 85.0 % 2.1 % $ 289.77 $ 231.57 25.1 % The Lodge at Sonoma Resort 182 $ 438.25 $ 302.54 44.9 % 52.9 % 71.9 % (19.0) % $ 231.63 $ 217.47 6.5 % Tranquility Bay Beachfront Resort 103 $ 560.50 $ 361.44 55.1 % 74.0 % 82.0 % (8.0) % $ 414.99 $ 296.56 39.9 % Westin Boston Waterfront 793 $ 258.04 $ 244.57 5.5 % 71.8 % 74.6 % (2.8) % $ 185.18 $ 182.36 1.5 % Westin Fort Lauderdale Beach Resort 433 $ 235.79 $ 197.38 19.5 % 76.9 % 84.2 % (7.3) % $ 181.42 $ 166.20 9.2 % Westin San Diego Bayview 436 $ 224.65 $ 175.45 28.0 % 65.0 % 69.9 % (4.9) % $ 146.08 $ 122.63 19.1 % Westin Washington D.C. City Center 410 $ 227.50 $ 205.91 10.5 % 64.6 % 84.4 % (19.8) % $ 146.92 $ 173.78 (15.5) % Worthington Renaissance Fort Worth Hotel 504 $ 208.37 $ 185.65 12.2 % 69.9 % 71.8 % (1.9) % $ 145.65 $ 133.25 9.3 % Comparable Total (1) 9,650 $ 283.50 $ 243.26 16.5 % 68.3 % 75.1 % (6.8) % $ 193.69 $ 182.59 6.1 % (1) Amounts include the pre-acquisition operating results of hotels acquired in 2023, 2022 and 2021 and exclude the Kimpton Fort Lauderdale Beach Resort as the hotel opened during 2021. Operating Statistics – Year to Date Numberof Rooms ADR Occupancy RevPAR YTD 2023 YTD 2022 B/(W) 2022 YTD 2023 YTD 2022 B/(W) 2022 YTD 2023 YTD 2022 B/(W) 2022 Atlanta Marriott Alpharetta 318 $ 155.55 $ 150.24 3.5 % 65.7 % 56.0 % 9.7 % $ 102.21 $ 84.16 21.4 % Bourbon Orleans Hotel 220 $ 241.00 $ 236.79 1.8 % 75.6 % 67.1 % 8.5 % $ 182.23 $ 158.86 14.7 % Cavallo Point , The Lodge at the Golden Gate 142 $ 591.89 $ 700.56 (15.5) % 55.4 % 51.1 % 4.3 % $ 327.66 $ 358.26 (8.5) % Chicago Marriott Downtown Magnificent Mile 1,200 $ 246.73 $ 242.34 1.8 % 59.5 % 54.6 % 4.9 % $ 146.76 $ 132.20 11.0 % Chico Hot Springs Resort & Day Spa 117 $ 183.46 $ 177.15 3.6 % 67.0 % 66.0 % 1.0 % $ 122.97 $ 117.00 5.1 % Courtyard Denver Downtown 177 $ 216.78 $ 204.49 6.0 % 75.2 % 74.2 % 1.0 % $ 163.04 $ 151.80 7.4 % Courtyard New York Manhattan/Fifth Avenue 189 $ 289.73 $ 277.34 4.5 % 95.3 % 93.3 % 2.0 % $ 276.15 $ 258.80 6.7 % Courtyard New York Manhattan/ Midtown East 321 $ 342.30 $ 328.22 4.3 % 90.9 % 83.8 % 7.1 % $ 311.13 $ 275.05 13.1 % Embassy Suites by Hilton Bethesda 272 $ 163.92 $ 143.75 14.0 % 71.0 % 52.2 % 18.8 % $ 116.45 $ 75.01 55.2 % Havana Cabana Key West 106 $ 300.60 $ 327.22 (8.1) % 83.2 % 85.3 % (2.1) % $ 250.01 $ 279.15 (10.4) % Henderson Park Resort 255 $ 432.60 $ 473.56 (8.6) % 55.4 % 61.8 % (6.4) % $ 239.49 $ 292.87 (18.2) % Henderson Park Inn 37 $ 595.38 $ 642.69 (7.4) % 68.9 % 73.1 % (4.2) % $ 410.13 $ 469.90 (12.7) % Hilton Burlington Lake Champlain 258 $ 248.79 $ 245.87 1.2 % 75.7 % 73.7 % 2.0 % $ 188.22 $ 181.23 3.9 % Hilton Garden Inn New York/Times Square Central 282 $ 275.67 $ 276.71 (0.4) % 91.4 % 93.2 % (1.8) % $ 251.93 $ 257.91 (2.3) % Hotel Clio 199 $ 313.75 $ 304.01 3.2 % 71.9 % 69.7 % 2.2 % $ 225.52 $ 211.87 6.4 % Hotel Emblem San Francisco 96 $ 234.34 $ 223.96 4.6 % 65.8 % 72.4 % (6.6) % $ 154.14 $ 162.14 (4.9) % Kimpton Hotel Palomar Phoenix 242 $ 222.03 $ 221.10 0.4 % 76.0 % 65.8 % 10.2 % $ 168.84 $ 145.48 16.1 % Kimpton Shorebreak Fort Lauderdale Beach Resort 96 $ 211.05 $ 229.48 (8.0) % 67.7 % 66.3 % 1.4 % $ 142.94 $ 152.07 (6.0) % Kimpton Shorebreak Huntington Beach Resort 157 $ 322.69 $ 345.17 (6.5) % 81.9 % 80.7 % 1.2 % $ 264.35 $ 278.42 (5.1) % L'Auberge de Sedona 88 $ 926.89 $ 995.34 (6.9) % 62.8 % 71.4 % (8.6) % $ 581.76 $ 710.81 (18.2) % Lake Austin Spa Resort 40 $ 1,065.76 $ 1,099.46 (3.1) % 58.5 % 68.3 % (9.8) % $ 623.11 $ 751.25 (17.1) % Margaritaville Beach House Key West 186 $ 398.18 $ 449.79 (11.5) % 82.7 % 79.8 % 2.9 % $ 329.19 $ 358.95 (8.3) % Orchards Inn Sedona 70 $ 293.83 $ 303.69 (3.2) % 59.9 % 66.5 % (6.6) % $ 176.08 $ 201.95 (12.8) % Salt Lake City Marriott Downtown at City Creek 510 $ 186.86 $ 176.24 6.0 % 62.6 % 59.4 % 3.2 % $ 116.96 $ 104.70 11.7 % The Dagny Boston 403 $ 278.65 $ 293.11 (4.9) % 77.8 % 77.7 % 0.1 % $ 216.90 $ 227.79 (4.8) % The Gwen 311 $ 297.18 $ 297.88 (0.2) % 74.5 % 73.0 % 1.5 % $ 221.33 $ 217.59 1.7 % The Hythe Vail 344 $ 436.67 $ 431.18 1.3 % 56.4 % 53.2 % 3.2 % $ 246.16 $ 229.35 7.3 % The Landing Lake Tahoe Resort & Spa 82 $ 448.48 $ 509.26 (11.9) % 51.4 % 49.0 % 2.4 % $ 230.43 $ 249.63 (7.7) % The Lindy Renaissance Charleston Hotel 167 $ 347.26 $ 360.02 (3.5) % 88.7 % 85.4 % 3.3 % $ 307.88 $ 307.37 0.2 % The Lodge at Sonoma Resort 182 $ 451.90 $ 462.85 (2.4) % 60.2 % 62.6 % (2.4) % $ 272.13 $ 289.59 (6.0) % Tranquility Bay Beachfront Resort 103 $ 630.39 $ 744.46 (15.3) % 76.8 % 73.4 % 3.4 % $ 484.26 $ 546.58 (11.4) % Westin Boston Waterfront 793 $ 246.93 $ 240.49 2.7 % 81.9 % 75.3 % 6.6 % $ 202.17 $ 181.09 11.6 % Westin Fort Lauderdale Beach Resort 433 $ 264.71 $ 269.09 (1.6) % 74.2 % 75.9 % (1.7) % $ 196.48 $ 204.22 (3.8) % Westin San Diego Bayview 436 $ 217.02 $ 201.64 7.6 % 76.1 % 72.8 % 3.3 % $ 165.18 $ 146.88 12.5 % Westin Washington D.C. City Center 410 $ 219.08 $ 214.53 2.1 % 73.0 % 60.1 % 12.9 % $ 159.99 $ 128.87 24.1 % Worthington Renaissance Fort Worth Hotel 504 $ 197.52 $ 188.68 4.7 % 73.3 % 68.9 % 4.4 % $ 144.86 $ 129.95 11.5 % Comparable Total (1) 9,650 $ 282.02 $ 288.78 (2.3) % 72.1 % 68.3 % 3.8 % $ 203.41 $ 197.36 3.1 % (1) Amounts include the pre-acquisition operating results of hotels acquired in 2023 and 2022 and exclude the Kimpton Fort Lauderdale Beach Resort as the hotel opened during 2021. . Operating Statistics – Year to Date Numberof Rooms ADR Occupancy RevPAR YTD 2023 YTD 2019 B/(W) 2019 YTD 2023 YTD 2019 B/(W) 2019 YTD 2023 YTD 2019 B/(W) 2019 Atlanta Marriott Alpharetta 318 $ 155.55 $ 165.41 (6.0) % 65.7 % 71.0 % (5.3) % $ 102.21 $ 117.46 (13.0) % Bourbon Orleans Hotel 220 $ 241.00 $ 219.08 10.0 % 75.6 % 82.2 % (6.6) % $ 182.23 $ 180.17 1.1 % Cavallo Point , The Lodge at the Golden Gate 142 $ 591.89 $ 466.43 26.9 % 55.4 % 64.8 % (9.4) % $ 327.66 $ 302.02 8.5 % Chicago Marriott Downtown Magnificent Mile 1,200 $ 246.73 $ 227.32 8.5 % 59.5 % 73.0 % (13.5) % $ 146.76 $ 165.98 (11.6) % Chico Hot Springs Resort & Day Spa 117 $ 183.46 $ 147.07 24.7 % 67.0 % 78.6 % (11.6) % $ 122.97 $ 115.53 6.4 % Courtyard Denver Downtown 177 $ 216.78 $ 198.23 9.4 % 75.2 % 78.4 % (3.2) % $ 163.04 $ 155.50 4.8 % Courtyard New York Manhattan/Fifth Avenue 189 $ 289.73 $ 259.33 11.7 % 95.3 % 88.1 % 7.2 % $ 276.15 $ 228.35 20.9 % Courtyard New York Manhattan/ Midtown East 321 $ 342.30 $ 261.60 30.8 % 90.9 % 96.1 % (5.2) % $ 311.13 $ 251.32 23.8 % Embassy Suites by Hilton Bethesda 272 $ 163.92 $ 175.72 (6.7) % 71.0 % 72.6 % (1.6) % $ 116.45 $ 127.58 (8.7) % Havana Cabana Key West 106 $ 300.60 $ 210.68 42.7 % 83.2 % 89.7 % (6.5) % $ 250.01 $ 189.07 32.2 % Henderson Beach Resort 255 $ 432.60 $ 302.16 43.2 % 55.4 % 54.4 % 1.0 % $ 239.49 $ 164.26 45.8 % Henderson Park Inn 37 $ 595.38 $ 462.04 28.9 % 68.9 % 74.2 % (5.3) % $ 410.13 $ 342.81 19.6 % Hilton Burlington Lake Champlain 258 $ 248.79 $ 190.61 30.5 % 75.7 % 81.1 % (5.4) % $ 188.22 $ 154.50 21.8 % Hilton Garden Inn New York/Times Square Central 282 $ 275.67 $ 255.13 8.1 % 91.4 % 98.6 % (7.2) % $ 251.93 $ 251.68 0.1 % Hotel Clio 199 $ 313.75 $ 253.48 23.8 % 71.9 % 72.4 % (0.5) % $ 225.52 $ 183.45 22.9 % Hotel Emblem San Francisco 96 $ 234.34 $ 241.09 (2.8) % 65.8 % 80.2 % (14.4) % $ 154.14 $ 193.28 (20.3) % Kimpton Hotel Palomar Phoenix 242 $ 222.03 $ 187.43 18.5 % 76.0 % 82.7 % (6.7) % $ 168.84 $ 155.00 8.9 % Kimpton Shorebreak Huntington Beach Resort 157 $ 322.69 $ 259.74 24.2 % 81.9 % 76.0 % 5.9 % $ 264.35 $ 197.50 33.8 % L'Auberge de Sedona 88 $ 926.89 $ 627.73 47.7 % 62.8 % 78.1 % (15.3) % $ 581.76 $ 489.99 18.7 % Lake Austin Spa Resort 40 $ 1,065.76 $ 809.52 31.7 % 58.5 % 62.2 % (3.7) % $ 623.11 $ 503.18 23.8 % Margaritaville Beach House Key West 186 $ 398.18 $ 260.28 53.0 % 82.7 % 74.8 % 7.9 % $ 329.19 $ 194.70 69.1 % Orchards Inn Sedona 70 $ 293.83 $ 249.86 17.6 % 59.9 % 75.6 % (15.7) % $ 176.08 $ 188.99 (6.8) % Salt Lake City Marriott Downtown at City Creek 510 $ 186.86 $ 172.21 8.5 % 62.6 % 68.5 % (5.9) % $ 116.96 $ 117.88 (0.8) % The Dagny Boston 403 $ 278.65 $ 301.21 (7.5) % 77.8 % 88.5 % (10.7) % $ 216.90 $ 266.64 (18.7) % The Gwen 311 $ 297.18 $ 258.98 14.8 % 74.5 % 83.5 % (9.0) % $ 221.33 $ 216.13 2.4 % The Hythe Vail 344 $ 436.67 $ 307.45 42.0 % 56.4 % 62.1 % (5.7) % $ 246.16 $ 190.86 29.0 % The Landing Lake Tahoe Resort & Spa 82 $ 448.48 $ 322.45 39.1 % 51.4 % 61.7 % (10.3) % $ 230.43 $ 198.80 15.9 % The Lindy Renaissance Charleston Hotel 167 $ 347.26 $ 263.88 31.6 % 88.7 % 84.2 % 4.5 % $ 307.88 $ 222.23 38.5 % The Lodge at Sonoma Resort 182 $ 451.90 $ 308.37 46.5 % 60.2 % 73.7 % (13.5) % $ 272.13 $ 227.27 19.7 % Tranquility Bay Beachfront Resort 103 $ 630.39 $ 404.10 56.0 % 76.8 % 86.1 % (9.3) % $ 484.26 $ 347.82 39.2 % Westin Boston Waterfront 793 $ 246.93 $ 249.76 (1.1) % 81.9 % 77.4 % 4.5 % $ 202.17 $ 193.34 4.6 % Westin Fort Lauderdale Beach Resort 433 $ 264.71 $ 202.58 30.7 % 74.2 % 82.4 % (8.2) % $ 196.48 $ 166.99 17.7 % Westin San Diego Bayview 436 $ 217.02 $ 190.09 14.2 % 76.1 % 79.0 % (2.9) % $ 165.18 $ 150.12 10.0 % Westin Washington D.C. City Center 410 $ 219.08 $ 206.61 6.0 % 73.0 % 86.3 % (13.3) % $ 159.99 $ 178.26 (10.2) % Worthington Renaissance Fort Worth Hotel 504 $ 197.52 $ 186.10 6.1 % 73.3 % 74.5 % (1.2) % $ 144.86 $ 138.67 4.5 % Comparable Total (1) 9,650 $ 282.02 $ 240.76 17.1 % 72.1 % 77.7 % (5.6) % $ 203.41 $ 187.17 8.7 % (1) Amounts include the pre-acquisition operating results of hotels acquired in 2023, 2022 and 2021 and exclude the Kimpton Fort Lauderdale Beach Resort as the hotel opened during 2021. Hotel Adjusted EBITDA Reconciliation - Fourth Quarter 2023 Net Income /(Loss) Plus: Plus: Plus: Equals: HotelAdjusted EBITDA Total Revenues Depreciation Interest Expense Adjustments (1) Atlanta Marriott Alpharetta $ 4,012 $ 944 $ 367 $ — $ — $ 1,311 Bourbon Orleans Hotel $ 4,630 $ 931 $ 873 $ — $ 6 $ 1,810 Cavallo Point , The Lodge at the Golden Gate $ 11,228 $ 684 $ 1,411 $ — $ 94 $ 2,189 Chicago Marriott Downtown Magnificent Mile $ 24,363 $ 1,974 $ 3,515 $ 6 $ (397) $ 5,098 Chico Hot Springs Resort & Day Spa $ 2,789 $ (434) $ 434 $ — $ 3 $ 3 Courtyard Denver Downtown $ 2,481 $ 547 $ 374 $ — $ — $ 921 Courtyard New York Manhattan/Fifth Avenue $ 5,865 $ 903 $ 356 $ — $ 253 $ 1,512 Courtyard New York Manhattan/ Midtown East $ 11,883 $ 3,336 $ 504 $ 890 $ — $ 4,730 Embassy Suites by Hilton Bethesda $ 3,326 $ (1,775) $ 569 $ — $ 1,463 $ 257 Havana Cabana Key West $ 3,028 $ 338 $ 306 $ — $ — $ 644 Henderson Beach Resort $ 6,862 $ (807) $ 1,043 $ — $ — $ 236 Henderson Park Inn $ 1,679 $ 156 $ 272 $ — $ — $ 428 Hilton Burlington Lake Champlain $ 5,537 $ 860 $ 596 $ — $ — $ 1,456 Hilton Garden Inn New York/Times Square Central $ 9,327 $ 2,862 $ 649 $ — $ — $ 3,511 Hotel Clio $ 7,394 $ 330 $ 845 $ 632 $ 5 $ 1,812 Hotel Emblem San Francisco $ 1,337 $ (284) $ 295 $ — $ — $ 11 Kimpton Hotel Palomar Phoenix $ 7,089 $ 1,386 $ 497 $ — $ 178 $ 2,061 Kimpton Shorebreak Fort Lauderdale Beach Resort $ 2,247 $ (112) $ 351 $ — $ — $ 239 Kimpton Shorebreak Huntington Beach Resort $ 5,406 $ 1,410 $ 380 $ — $ — $ 1,790 L'Auberge de Sedona $ 9,573 $ 3,120 $ 375 $ — $ — $ 3,495 Lake Austin Spa Resort $ 4,969 $ 28 $ 696 $ — $ — $ 724 Margaritaville Beach House Key West $ 6,876 $ 765 $ 771 $ — $ — $ 1,536 Orchards Inn Sedona $ 2,266 $ 588 $ 85 $ — $ 42 $ 715 Salt Lake City Marriott Downtown at City Creek $ 7,873 $ 1,831 $ 917 $ — $ 11 $ 2,759 The Dagny Boston $ 8,537 $ 650 $ 1,534 $ — $ — $ 2,184 The Gwen $ 9,281 $ 1,215 $ 1,038 $ — $ — $ 2,253 The Hythe Vail $ 8,880 $ 832 $ 1,189 $ — $ — $ 2,021 The Landing Lake Tahoe Resort & Spa $ 2,426 $ 221 $ 222 $ — $ — $ 443 The Lindy Renaissance Charleston Hotel $ 5,583 $ 1,965 $ 474 $ — $ — $ 2,439 The Lodge at Sonoma Resort $ 6,592 $ 518 $ 633 $ — $ — $ 1,151 Tranquility Bay Beachfront Resort $ 5,064 $ 930 $ 447 $ — $ — $ 1,377 Westin Boston Seaport District $ 22,327 $ 161 $ 2,447 $ 1,986 $ (122) $ 4,472 Westin Fort Lauderdale Beach Resort $ 15,567 $ 1,799 $ 1,022 $ — $ — $ 2,821 Westin San Diego Bayview $ 7,860 $ 998 $ 856 $ — $ — $ 1,854 Westin Washington D.C. City Center $ 7,150 $ (729) $ 1,026 $ — $ — $ 297 Worthington Renaissance Fort Worth Hotel $ 12,240 $ 2,523 $ 938 $ 714 $ — $ 4,175 Total $ 263,547 $ 30,664 $ 28,307 $ 4,228 $ 1,536 $ 64,818 Less: Non Comparable Hotel (2) $ (2,247) $ 112 $ (351) $ — $ — $ (239) Comparable Total $ 261,300 $ 30,776 $ 27,956 $ 4,228 $ 1,536 $ 64,579 (1) Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization of intangible assets and liabilities. (2) Excludes the Kimpton Fort Lauderdale Beach Resort as the hotel opened during 2021. Hotel Adjusted EBITDA Reconciliation - Fourth Quarter 2022 Net Income /(Loss) Plus: Plus: Plus: Equals: Hotel Total Revenues Depreciation Interest Expense Adjustments (1) Adjusted EBITDA Atlanta Marriott Alpharetta $ 3,798 $ 837 $ 366 $ — $ — $ 1,203 Bourbon Orleans Hotel $ 5,477 $ 1,558 $ 836 $ — $ 6 $ 2,400 Cavallo Point , The Lodge at the Golden Gate $ 11,037 $ (48) $ 1,998 $ — $ 94 $ 2,044 Chicago Marriott Downtown Magnificent Mile $ 24,334 $ 6,615 $ 3,828 $ 6 $ (397) $ 10,052 Courtyard Denver Downtown $ 2,554 $ 610 $ 378 $ — $ — $ 988 Courtyard New York Manhattan/Fifth Avenue $ 5,975 $ 1,250 $ 339 $ — $ 253 $ 1,842 Courtyard New York Manhattan/ Midtown East $ 11,202 $ 3,029 $ 507 $ 910 $ — $ 4,446 Embassy Suites by Hilton Bethesda $ 2,659 $ (1,948) $ 562 $ — $ 1,477 $ 91 Havana Cabana Key West $ 2,894 $ 633 $ 281 $ — $ — $ 914 Henderson Beach Resort $ 6,881 $ (638) $ 993 $ — $ — $ 355 Henderson Park Inn $ 1,582 $ 26 $ 233 $ — $ — $ 259 Hilton Burlington Lake Champlain $ 5,485 $ 1,775 $ 564 $ — $ — $ 2,339 Hilton Garden Inn New York/Times Square Central $ 9,940 $ 3,262 $ 638 $ — $ — $ 3,900 Hotel Clio $ 7,132 $ 257 $ 878 $ 647 $ 5 $ 1,787 Hotel Emblem San Francisco $ 1,630 $ (250) $ 296 $ — $ — $ 46 Kimpton Hotel Palomar Phoenix $ 5,288 $ 409 $ 726 $ — $ 181 $ 1,316 Kimpton Shorebreak Fort Lauderdale Beach Resort $ 1,987 $ (378) $ 302 $ — $ — $ (76) Kimpton Shorebreak Huntington Beach Resort $ 5,294 $ 1,095 $ 389 $ — $ — $ 1,484 L'Auberge de Sedona $ 9,444 $ 3,361 $ 374 $ — $ — $ 3,735 Lake Austin Spa Resort $ 1,944 $ 132 $ 212 $ — $ — $ 344 Margaritaville Beach House Key West $ 6,342 $ 522 $ 795 $ — $ — $ 1,317 Orchards Inn Sedona $ 2,336 $ 580 $ 89 $ — $ 42 $ 711 Salt Lake City Marriott Downtown at City Creek $ 7,173 $ 1,336 $ 567 $ 225 $ 11 $ 2,139 The Dagny Boston $ 9,321 $ 1,629 $ 1,046 $ — $ — $ 2,675 The Gwen $ 9,482 $ 3,204 $ 1,077 $ — $ — $ 4,281 The Hythe Vail $ 9,200 $ 913 $ 1,176 $ — $ — $ 2,089 The Landing Lake Tahoe Resort & Spa $ 2,323 $ 98 $ 222 $ — $ — $ 320 The Lindy Renaissance Charleston Hotel $ 5,667 $ 2,150 $ 441 $ — $ — $ 2,591 The Lodge at Sonoma Resort $ 7,900 $ 1,273 $ 714 $ 88 $ — $ 2,075 Tranquility Bay Beachfront Resort $ 4,671 $ 1,104 $ 432 $ — $ — $ 1,536 Westin Boston Seaport District $ 21,076 $ 233 $ 2,481 $ 2,036 $ (122) $ 4,628 Westin Fort Lauderdale Beach Resort $ 16,147 $ 3,590 $ 1,011 $ — $ — $ 4,601 Westin San Diego Bayview $ 7,333 $ 287 $ 860 $ 421 $ — $ 1,568 Westin Washington D.C. City Center $ 7,141 $ (38) $ 1,023 $ 25 $ — $ 1,010 Worthington Renaissance Fort Worth Hotel $ 12,406 $ 2,770 $ 1,118 $ 731 $ 1 $ 4,620 Total $ 255,055 $ 41,238 $ 27,752 $ 5,089 $ 1,551 $ 75,626 Add: Prior Ownership Results (2) $ 5,095 $ 1,794 $ 11 $ — $ — $ 1,805 Comparable Total $ 260,150 $ 43,032 $ 27,763 $ 5,089 $ 1,551 $ 77,431 (1) Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization of intangible assets and liabilities. (2) Represents the pre-acquisition operating results of our 2023 and 2022 acquisitions and excludes the Kimpton Fort Lauderdale Beach Resort . Hotel Adjusted EBITDA Reconciliation - Fourth Quarter 2019 Net Income /(Loss) Plus: Plus: Plus: Equals: Hotel Total Revenues Depreciation Interest Expense Adjustments (1) Adjusted EBITDA Atlanta Marriott Alpharetta $ 4,627 $ 1,159 $ 407 $ — $ — $ 1,566 Cavallo Point , The Lodge at the Golden Gate $ 10,010 $ 924 $ 1,814 $ — $ 94 $ 2,832 Chicago Marriott Downtown Magnificent Mile $ 29,038 $ 4,750 $ 4,248 $ 5 $ (397) $ 8,606 Courtyard Denver Downtown $ 2,425 $ 726 $ 325 $ — $ — $ 1,051 Courtyard New York Manhattan/Fifth Avenue $ 4,770 $ 545 $ 451 $ — $ 253 $ 1,249 Courtyard New York Manhattan/ Midtown East $ 9,211 $ 1,385 $ 704 $ 965 $ — $ 3,054 Embassy Suites by Hilton Bethesda $ 4,288 $ (660) $ 468 $ — $ 1,516 $ 1,324 Frenchman's Reef & Morning Star Marriott Beach Resort $ — $ — $ — $ — $ — $ — Havana Cabana Key West $ 2,420 $ 412 $ 238 $ — $ — $ 650 Hilton Burlington Lake Champlain $ 4,542 $ 1,217 $ 501 $ — $ — $ 1,718 Hilton Garden Inn New York/Times Square Central $ 8,153 $ 2,185 $ 840 $ — $ — $ 3,025 Hotel Clio $ 5,049 $ (235) $ 823 $ 688 $ 6 $ 1,282 Hotel Emblem San Francisco $ 2,254 $ 320 $ 285 $ — $ — $ 605 Kimpton Hotel Palomar Phoenix $ 6,693 $ 1,159 $ 681 $ 38 $ 293 $ 2,171 Kimpton Shorebreak Huntington Beach Resort $ 3,661 $ 246 $ 439 $ — $ 40 $ 725 L'Auberge de Sedona $ 7,610 $ 1,936 $ 594 $ — $ — $ 2,530 Margaritaville Beach House Key West $ 2,989 $ (177) $ 534 $ — $ — $ 357 Orchards Inn Sedona $ 1,840 $ 176 $ 238 $ — $ 42 $ 456 Salt Lake City Marriott Downtown at City Creek $ 7,968 $ 1,676 $ 549 $ 603 $ — $ 2,828 The Dagny Boston $ 10,002 $ 2,660 $ 1,223 $ — $ — $ 3,883 The Gwen $ 8,722 $ 1,156 $ 1,157 $ — $ — $ 2,313 The Hythe Vail $ 8,139 $ 764 $ 1,098 $ — $ — $ 1,862 The Landing Lake Tahoe Resort & Spa $ 1,904 $ (176) $ 411 $ — $ — $ 235 The Lexington Hotel $ 21,013 $ 2,524 $ 3,610 $ 6 $ 8 $ 6,148 The Lindy Renaissance Charleston Hotel $ 4,172 $ 1,225 $ 423 $ — $ (32) $ 1,616 The Lodge at Sonoma Resort $ 5,622 $ 537 $ 505 $ 279 $ — $ 1,321 Westin Boston Seaport District $ 22,364 $ 796 $ 2,551 $ 2,171 $ (60) $ 5,458 Westin Fort Lauderdale Beach Resort $ 12,746 $ 1,860 $ 1,634 $ — $ — $ 3,494 Westin San Diego Bayview $ 7,227 $ 170 $ 1,151 $ 633 $ — $ 1,954 Westin Washington D.C. City Center $ 8,004 $ 444 $ 1,370 $ 658 $ — $ 2,472 Worthington Renaissance Fort Worth Hotel $ 10,056 $ 781 $ 1,033 $ 781 $ 2 $ 2,597 Total $ 237,519 $ 30,485 $ 30,305 $ 6,827 $ 1,765 $ 69,416 Add: Prior Ownership Results (2) $ 20,943 $ 488 $ 2,264 $ — $ — $ 2,752 Less: Sold Hotels (3) $ (21,013) $ (2,524) $ (3,610) $ (6) $ (8) $ (6,148) Comparable Total $ 237,449 $ 28,449 $ 28,959 $ 6,821 $ 1,757 $ 66,020 (1) Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization of intangible assets and liabilities. (2) Represents the pre-acquisition operating results of our 2023, 2022 and 2021 acquisitions (excluding the Kimpton Fort Lauderdale Beach Resort ). (3) Represents the operating results of Frenchman's Reef and The Lexington Hotel . Hotel Adjusted EBITDA Reconciliation - Year to Date 2023 Total Revenues Net Income /(Loss) Plus: Depreciation Plus: InterestExpense Plus: Adjustments (1) Equals: HotelAdjusted EBITDA Atlanta Marriott Alpharetta $ 16,596 $ 4,024 $ 1,458 $ — $ — $ 5,482 Bourbon Orleans Hotel $ 18,079 $ 3,762 $ 3,425 $ — $ 25 $ 7,212 Cavallo Point , The Lodge at the Golden Gate $ 44,990 $ 5,131 $ 5,609 $ — $ 375 $ 11,115 Chicago Marriott Downtown Magnificent Mile $ 103,932 $ 16,266 $ 14,224 $ 23 $ (1,589) $ 28,924 Chico Hot Springs Resort & Day Spa $ 5,384 $ (77) $ 629 $ — $ 3 $ 555 Courtyard Denver Downtown $ 11,696 $ 3,446 $ 1,500 $ — $ — $ 4,946 Courtyard New York Manhattan/Fifth Avenue $ 19,536 $ 1,777 $ 1,453 $ — $ 1,014 $ 4,244 Courtyard New York Manhattan/ Midtown East $ 37,773 $ 6,687 $ 2,028 $ 3,561 $ — $ 12,276 Embassy Suites by Hilton Bethesda $ 13,438 $ (6,692) $ 2,282 $ — $ 5,873 $ 1,463 Havana Cabana Key West $ 12,884 $ 2,632 $ 1,183 $ — $ — $ 3,815 Henderson Beach Resort $ 39,382 $ 3,685 $ 4,091 $ — $ — $ 7,776 Henderson Park Inn $ 8,723 $ 2,365 $ 1,057 $ — $ — $ 3,422 Hilton Burlington Lake Champlain $ 23,437 $ 5,697 $ 2,275 $ — $ — $ 7,972 Hilton Garden Inn New York/Times Square Central $ 28,635 $ 6,184 $ 2,578 $ — $ — $ 8,762 Hotel Clio $ 27,208 $ 449 $ 3,335 $ 2,529 $ 19 $ 6,332 Hotel Emblem San Francisco $ 6,561 $ (1,024) $ 1,185 $ — $ — $ 161 Kimpton Hotel Palomar Phoenix $ 25,669 $ 4,110 $ 2,143 $ — $ 716 $ 6,969 Kimpton Shorebreak Fort Lauderdale Beach Resort $ 8,414 $ (863) $ 1,272 $ — $ — $ 409 Kimpton Shorebreak Huntington Beach Resort $ 21,986 $ 6,073 $ 1,557 $ — $ — $ 7,630 L'Auberge de Sedona $ 31,140 $ 7,743 $ 1,480 $ — $ — $ 9,223 Lake Austin Spa Resort $ 20,431 $ 1,865 $ 2,612 $ — $ — $ 4,477 Margaritaville Beach House Key West $ 30,231 $ 8,583 $ 3,137 $ — $ — $ 11,720 Orchards Inn Sedona $ 8,491 $ 1,694 $ 358 $ — $ 168 $ 2,220 Salt Lake City Marriott Downtown at City Creek $ 31,106 $ 8,380 $ 2,828 $ — $ 42 $ 11,250 The Dagny Boston $ 35,555 $ 4,324 $ 5,729 $ — $ — $ 10,053 The Gwen $ 36,407 $ 4,726 $ 4,201 $ — $ — $ 8,927 The Hythe Vail $ 46,607 $ 12,206 $ 4,792 $ — $ — $ 16,998 The Landing Lake Tahoe Resort & Spa $ 12,500 $ 2,741 $ 888 $ — $ — $ 3,629 The Lindy Renaissance Charleston Hotel $ 23,341 $ 8,548 $ 1,892 $ — $ — $ 10,440 The Lodge at Sonoma Resort $ 30,403 $ 5,435 $ 2,566 $ — $ — $ 8,001 Tranquility Bay Beachfront Resort $ 23,286 $ 5,331 $ 1,762 $ — $ — $ 7,093 Westin Boston Seaport District $ 93,839 $ 5,431 $ 9,870 $ 7,955 $ (490) $ 22,766 Westin Fort Lauderdale Beach Resort $ 65,632 $ 10,977 $ 4,117 $ — $ — $ 15,094 Westin San Diego Bayview $ 34,984 $ 7,021 $ 3,417 $ — $ — $ 10,438 Westin Washington D.C. City Center $ 29,631 $ 706 $ 4,096 $ — $ — $ 4,802 Worthington Renaissance Fort Worth Hotel $ 46,960 $ 7,348 $ 4,273 $ 2,858 $ — $ 14,479 Total $ 1,074,867 $ 166,691 $ 111,302 $ 16,926 $ 6,156 $ 301,156 Add: Prior Ownership Results (2) $ 520 $ 2,164 $ (747) $ — $ — $ 1,417 Comparable Total $ 1,075,387 $ 168,855 $ 110,555 $ 16,926 $ 6,156 $ 302,573 (1) Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization of intangible assets and liabilities. (2) Represents the pre-acquisition operating results of our 2023 acquisition and excludes the Kimpton Fort Lauderdale Beach Resort . Hotel Adjusted EBITDA Reconciliation - Year to Date 2022 Net Income /Loss) Plus: Plus: Plus: Equals: Hotel Total Revenues Depreciation Interest Expense Adjustments (1) Adjusted EBITDA Atlanta Marriott Alpharetta $ 13,706 $ 2,847 $ 1,478 $ — $ — $ 4,325 Bourbon Orleans Hotel $ 16,503 $ 2,986 $ 3,321 $ — $ 25 $ 6,332 Cavallo Point , The Lodge at the Golden Gate $ 45,030 $ 4,663 $ 7,533 $ — $ 375 $ 12,571 Chicago Marriott Downtown Magnificent Mile $ 91,934 $ 19,420 $ 15,514 $ 23 $ (1,589) $ 33,368 Courtyard Denver Downtown $ 11,007 $ 3,527 $ 1,508 $ — $ — $ 5,035 Courtyard New York Manhattan/Fifth Avenue $ 18,119 $ 1,108 $ 1,333 $ — $ 1,014 $ 3,455 Courtyard New York Manhattan/ Midtown East $ 33,251 $ 4,207 $ 1,963 $ 3,640 $ — $ 9,810 Embassy Suites by Hilton Bethesda $ 8,892 $ (9,254) $ 2,243 $ — $ 5,928 $ (1,083) Havana Cabana Key West $ 14,014 $ 4,677 $ 1,111 $ — $ — $ 5,788 Henderson Beach Resort $ 42,287 $ 4,961 $ 3,906 $ — $ — $ 8,867 Henderson Park Inn $ 8,769 $ 2,286 $ 899 $ — $ — $ 3,185 Hilton Burlington Lake Champlain $ 21,836 $ 6,464 $ 2,262 $ — $ — $ 8,726 Hilton Garden Inn New York/Times Square Central $ 29,078 $ 6,610 $ 2,517 $ — $ — $ 9,127 Hotel Clio $ 26,726 $ 966 $ 3,405 $ 2,588 $ 19 $ 6,978 Hotel Emblem San Francisco $ 6,927 $ (362) $ 1,187 $ — $ — $ 825 Kimpton Hotel Palomar Phoenix $ 20,622 $ 2,387 $ 2,722 $ — $ 729 $ 5,838 Kimpton Shorebreak Fort Lauderdale Beach Resort $ 5,224 $ (925) $ 911 $ — $ — $ (14) Kimpton Shorebreak Huntington Beach Resort $ 23,015 $ 6,987 $ 1,590 $ — $ — $ 8,577 L'Auberge de Sedona $ 34,564 $ 10,417 $ 1,475 $ — $ — $ 11,892 Lake Austin Spa Resort $ 1,944 $ 132 $ 212 $ — $ — $ 344 Margaritaville Beach House Key West $ 31,866 $ 10,145 $ 3,182 $ — $ — $ 13,327 Orchards Inn Sedona $ 9,124 $ 2,304 $ 343 $ — $ 168 $ 2,815 Salt Lake City Marriott Downtown at City Creek $ 27,506 $ 5,400 $ 2,224 $ 1,803 $ 42 $ 9,469 The Dagny Boston $ 37,420 $ 8,194 $ 4,118 $ — $ — $ 12,312 The Gwen $ 36,784 $ 8,372 $ 4,284 $ — $ — $ 12,656 The Hythe Vail $ 41,726 $ 8,404 $ 4,783 $ — $ — $ 13,187 The Landing Lake Tahoe Resort & Spa $ 12,269 $ 3,354 $ 1,015 $ — $ — $ 4,369 The Lindy Renaissance Charleston Hotel $ 23,340 $ 8,677 $ 1,813 $ — $ — $ 10,490 The Lodge at Sonoma Resort $ 31,633 $ 5,607 $ 2,619 $ 870 $ — $ 9,096 Tranquility Bay Beachfront Resort $ 24,321 $ 6,429 $ 1,709 $ — $ — $ 8,138 Westin Boston Seaport District $ 84,186 $ 3,105 $ 9,825 $ 8,148 $ (490) $ 20,588 Westin Fort Lauderdale Beach Resort $ 70,104 $ 20,129 $ 3,953 $ — $ — $ 24,082 Westin San Diego Bayview $ 30,310 $ 3,794 $ 3,344 $ 2,177 $ — $ 9,315 Westin Washington D.C. City Center $ 24,956 $ (1,182) $ 4,101 $ 1,806 $ — $ 4,725 Worthington Renaissance Fort Worth Hotel $ 42,510 $ 6,210 $ 4,446 $ 2,928 $ 5 $ 13,589 Total $ 1,001,503 $ 173,046 $ 108,849 $ 23,983 $ 6,226 $ 312,105 Add: Prior Ownership Results (2) $ 32,372 $ 9,509 $ 988 $ — $ — $ 10,497 Comparable Total $ 1,033,875 $ 182,555 $ 109,837 $ 23,983 $ 6,226 $ 322,602 (1) Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization of intangible assets and liabilities. (2) Represents the pre-acquisition operating results of our 2023 and 2022 acquisitions and excludes the Kimpton Fort Lauderdale Beach Resort . Hotel Adjusted EBITDA Reconciliation - Year to Date 2019 Plus: Plus: Plus: Equals: Total Revenues Net Income /(Loss) Depreciation Interest Expense Adjustments (1) Hotel Adjusted EBITDA Atlanta Marriott Alpharetta $ 19,586 $ 5,050 $ 1,796 $ — $ — $ 6,846 Cavallo Point , The Lodge at the Golden Gate $ 40,610 $ 3,298 $ 7,371 $ — $ 315 $ 10,984 Chicago Marriott Downtown Magnificent Mile $ 112,262 $ 16,876 $ 16,710 $ 116 $ (1,589) $ 32,113 Courtyard Denver Downtown $ 11,306 $ 4,133 $ 1,206 $ — $ — $ 5,339 Courtyard New York Manhattan/Fifth Avenue $ 16,187 $ 26 $ 1,781 $ — $ 1,014 $ 2,821 Courtyard New York Manhattan/ Midtown East $ 30,424 $ 1,315 $ 2,781 $ 3,856 $ — $ 7,952 Embassy Suites by Hilton Bethesda $ 17,339 $ (2,691) $ 1,890 $ — $ 6,068 $ 5,267 Frenchman's Reef & Morning Star Marriott Beach Resort $ — $ 8,799 $ — $ — $ — $ 8,799 Havana Cabana Key West $ 9,771 $ 2,447 $ 979 $ — $ — $ 3,426 Hilton Burlington Lake Champlain $ 18,572 $ 5,134 $ 2,002 $ — $ — $ 7,136 Hilton Garden Inn New York/Times Square Central $ 26,375 $ 3,916 $ 3,349 $ — $ — $ 7,265 Hotel Clio $ 19,429 $ (1,179) $ 2,798 $ 2,751 $ 24 $ 4,394 Hotel Emblem San Francisco $ 7,904 $ 643 $ 1,153 $ — $ — $ 1,796 Kimpton Hotel Palomar Phoenix $ 24,701 $ 3,478 $ 2,671 $ 154 $ 1,177 $ 7,480 Kimpton Shorebreak Huntington Beach Resort $ 17,365 $ 3,832 $ 1,485 $ — $ 162 $ 5,479 L'Auberge de Sedona $ 26,868 $ 5,623 $ 2,119 $ — $ — $ 7,742 Margaritaville Beach House Key West $ 15,895 $ 3,380 $ 1,567 $ — $ — $ 4,947 Orchards Inn Sedona $ 7,730 $ 1,061 $ 951 $ — $ 168 $ 2,180 Salt Lake City Marriott Downtown at City Creek $ 31,554 $ 6,796 $ 2,228 $ 2,421 $ — $ 11,445 The Dagny Boston $ 42,339 $ 11,784 $ 4,931 $ — $ — $ 16,715 The Gwen $ 34,431 $ 5,185 $ 4,442 $ — $ — $ 9,627 The Hythe Vail, a Luxury Collection Resort $ 36,128 $ 6,827 $ 4,133 $ — $ — $ 10,960 The Landing Lake Tahoe Resort & Spa $ 9,522 $ 118 $ 1,590 $ — $ — $ 1,708 The Lexington Hotel $ 68,886 $ 745 $ 14,305 $ 23 $ 32 $ 15,105 The Lindy Renaissance Charleston Hotel $ 15,738 $ 4,663 $ 1,665 $ — $ (126) $ 6,202 The Lodge at Sonoma Resort $ 24,645 $ 3,771 $ 2,076 $ 1,119 $ — $ 6,966 Westin Boston Seaport District $ 93,355 $ 7,082 $ 9,817 $ 8,677 $ (240) $ 25,336 Westin Fort Lauderdale Beach Resort $ 50,992 $ 9,083 $ 6,487 $ — $ — $ 15,570 Westin San Diego Bayview $ 33,560 $ 4,939 $ 4,548 $ 2,534 $ — $ 12,021 Westin Washington D.C . City Center $ 33,242 $ 2,518 $ 5,319 $ 2,643 $ — $ 10,480 Worthington Renaissance Fort Worth Hotel $ 41,375 $ 6,378 $ 3,960 $ 3,120 $ 8 $ 13,466 Total $ 938,091 $ 135,030 $ 118,110 $ 27,414 $ 7,013 $ 287,443 Add: Prior Ownership Results (2) $ 97,106 $ 11,158 $ 9,054 $ — $ — $ 20,212 Less: Sold Hotels (3) $ (68,886) $ (9,544) $ (14,305) $ (23) $ (32) $ (23,904) Comparable Total $ 966,311 $ 136,644 $ 112,859 $ 27,391 $ 6,981 $ 283,751 (1) Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization of intangible assets and liabilities. (2) Represents the pre-acquisition operating results of our 2023, 2022 and 2021 acquisitions (excluding the Kimpton Fort Lauderdale Beach Resort). (3) Represents the operating results of Frenchman's Reef and The Lexington Hotel. View original content: https://www.prnewswire.com/news-releases/diamondrock-hospitality-company-reports-fourth-quarter-and-full-year-2023-results-302069238.html SOURCE DiamondRock Hospitality Company

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