DIAMONDROCK HOSPITALITY COMPANY REPORTS SECOND QUARTER 2024 RESULTS

About this update from Diamondrock Hospitality Company

Comparable Total Revenues 4.8% Above 2023 Raises Midpoint of Full Year Guidance BETHESDA, Md. , Aug. 1, 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 ended June 30, 2024 . Second Quarter 2024 Highlights Net Income: Net income was $24.6 million and earnings per diluted share was $0.10 . Comparable Revenues: Comparable total revenues were $309.3 million , a 4.8% increase from the second quarter of 2023. Comparable RevPAR: Comparable RevPAR was $229.21 , a 2.2% increase from the second quarter of 2023. Comparable Total RevPAR: Comparable RevPAR was $348.37 , a 4.5% increase from the second quarter of 2023. Comparable Hotel Adjusted EBITDA : Comparable Hotel Adjusted EBITDA was $99.5 million , a 5.5% increase from the second quarter of 2023. Comparable Hotel Adjusted EBITDA Margin : Comparable Hotel Adjusted EBITDA margin was 32.17%, a 20 basis point increase from the second quarter of 2023. Adjusted EBITDA: Adjusted EBITDA was $92.5 million , a 7.8% increase from the second quarter of 2023. Adjusted FFO: Adjusted FFO was $72.5 million and Adjusted FFO per diluted share was $0.34 . Share Repurchases: The Company repurchased 2.5 million shares of its common stock at a weighted average price of $8.39 per share for a total consideration of approximately $20.6 million during the second quarter of 2024. Recent Developments Brand Conversion: In July 2024 , the Company completed the repositioning and rebranding of the Hilton Burlington Lake Champlain as the Hotel Champlain Burlington , Curio Collection by Hilton. The transformation of the 258-room hotel represents a strong return-on-investment opportunity and included the creation of new lifestyle community spaces, a new all-day cafe, an upgraded state-of-the-art fitness center, and a new signature seafood restaurant, Original Skiff Fish & Oysters, in partnership with a local award-winning chef. Share Repurchases: The Company continued share repurchase activity subsequent to the end of the second quarter. To date in 2024, the Company has repurchased 2.8 million shares of its common stock at a weighted average price of $8.36 per share for a total consideration of approximately $23.5 million . "Second quarter operating results surpassed our expectations. Our strategy to focus on building a larger base of group demand drove strong room revenues and significantly stronger food and beverage revenues, particularly at our larger urban properties. Group pace in the second half of the year is strong, but we remain vigilant given the uncertain economic and election backdrop. Due to the strong second quarter performance and robust expense controls, we feel comfortable raising the midpoint of our full-year earnings guidance to a range of $0.95 to $1.00 for Adjusted FFO per share and $278 million to $290 million for Adjusted EBITDA based upon a full-year 2024 RevPAR outlook of 1.5% to 3%. Earlier in the year DiamondRock took steps to reduce our corporate overhead and we are just as focused on optimizing the efficiency of our long-term capital expenditures to retain more cash for accretive investments. For example, we are reducing the scope of the previously announced Bourbon Orleans renovation by nearly 40%. We expect we can deliver an attractive room product with a more reliable return profile without the incremental capital cost and operating expense of adding food and beverage outlets; nevertheless we have preserved this option for the future. We are also keenly focused on recycling capital from non-core properties and proactively working to recycle those potential proceeds into more attractive investments such as share repurchases and new on-strategy investments." - Jeffrey J. Donnelly , Chief Executive Officer of DiamondRock Hospitality Company Operating Results Please see "Non-GAAP Financial Measures" attached to this press release for an explanation of the terms "EBITDAre," "Adjusted EBITDA," " Hotel Adjusted EBITDA ," " Hotel Adjusted EBITDA Margin ," "FFO" and "Adjusted FFO" and a reconciliation of these measures to net income. Comparable operating results include all hotels currently owned for all periods presented. See "Reconciliation of Comparable Operating Results" attached to this press release for a reconciliation to historical amounts. Quarter Ended June 30 , Six Months Ended June 30 , 2024 2023 Change 2024 2023 Change ($ amounts in millions, except hotel statistics and per share amounts) Comparable Operating Results (1) ADR $ 294.55 $ 292.67 0.6 % $ 282.85 $ 285.15 (0.8) % Occupancy 77.8 % 76.6 % 1.2 % 73.1 % 71.8 % 1.3 % RevPAR $ 229.21 $ 224.27 2.2 % $ 206.72 $ 204.75 1.0 % Total RevPAR $ 348.37 $ 333.24 4.5 % $ 318.65 $ 307.91 3.5 % Room Revenues $ 203.5 $ 198.6 2.5 % $ 367.0 $ 360.5 1.8 % Total Revenues $ 309.3 $ 295.1 4.8 % $ 565.7 $ 542.1 4.4 % Hotel Adjusted EBITDA $ 99.5 $ 94.3 5.5 % $ 160.9 $ 157.7 2.0 % Hotel Adjusted EBITDA Margin 32.17 % 31.97 % 20 bps 28.44 % 29.09 % (65 bps) Available Rooms 887,796 885,430 2,366 1,775,319 1,760,556 14,763 Actual Operating Results (2) Total Revenues $ 309.3 $ 291.2 6.2 % $ 565.7 $ 534.8 5.8 % Net income $ 24.6 $ 39.1 (37.1) % $ 33.0 $ 48.3 (31.7) % Earnings per diluted share $ 0.10 $ 0.17 (41.2) % $ 0.13 $ 0.20 (35.0) % Adjusted EBITDA $ 92.5 $ 85.8 7.8 % $ 146.1 $ 141.1 3.5 % Adjusted FFO $ 72.5 $ 67.3 7.7 % $ 108.5 $ 105.3 3.0 % Adjusted FFO per diluted share $ 0.34 $ 0.32 6.3 % $ 0.51 $ 0.49 4.1 % (1) Amounts represent the pre-acquisition operating results for Chico Hot Springs Resort from January 1, 2023 to June 30, 2023 . The pre-acquisition operating results were obtained from the seller of the hotel 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. Capital Expenditures The Company has invested approximately $35.8 million in capital improvements at its hotels during the six months ended June 30, 2024 . The Company expects to spend approximately $90 to $100 million on capital improvements at its hotels in 2024. Significant projects in 2024 include the following: Hotel Champlain Burlington : The Company completed the rebranding and repositioning of the Hilton Burlington Lake Champlain to Hotel Champlain Burlington , a Curio Collection by Hilton hotel in July 2024 . Westin San Diego Bayview : The Company substantially completed a comprehensive renovation of the hotel's guestrooms during the second quarter of 2024. Orchards Inn Sedona : The Company expects to commence a repositioning of Orchards Inn as the Cliffs at L'Auberge in the fourth quarter of 2024. The project is expected to be completed in 2025 and 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 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 quarter with $629.5 million of liquidity, comprised of $125.2 million of unrestricted corporate cash, $104.3 million of unrestricted cash at its hotels and full availability on its $400 million senior unsecured credit facility. As of June 30, 2024 , the Company had $1.2 billion of total debt outstanding, which consisted of $800.0 million of unsecured term loans and $373.3 million of property-specific, non-recourse mortgage debt. Share Repurchase Program In May 2024 , the Company's Board of Directors approved a new $200 million share repurchase program through May 1, 2026 , which replaced the existing share repurchase program. During the quarter ended June 30, 2024 , the Company repurchased 2.5 million shares of its common stock at an average price of $8.39 per share for a total purchase price of $20.6 million . Subsequent to quarter end, the Company repurchased an additional 0.4 million shares of its common stock at an average price of $8.17 per share for a total purchase price of $2.9 million . The Company currently has $176.5 million of remaining authorized capacity under the share repurchase program. Dividends The Company declared a quarterly cash dividend of $0.03 per common share, which was paid on July 12, 2024 to shareholders of record as of June 28, 2024 . The Company paid a quarterly dividend of $0.515625 per share on its 8.250% Series A Cumulative Redeemable Preferred Stock on June 28, 2024 to shareholders of record as of June 18, 2024 . 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 is revising its annual guidance for 2024 and now expects full year 2024 results to be as follows: Previous Guidance Revised Guidance Change at Midpoint Metric Low End High End Low End High End Comparable RevPAR Growth 2.0 % 4.0 % 1.5 % 3.0 % (0.75 %) Adjusted EBITDA $270 million $290 million $278 million $290 million + $4.0 million Adjusted FFO $194 million $214 million $201.5 million $213.5 million + $3.5 million Adjusted FFO per share (based on 212.5 million diluted shares) $0.91 per share $1.00 per share $0.95 per share $1.00 per share +$0.02 per share The guidance above incorporates the following assumptions: Corporate expenses of $30.5 million to $31.5 million , excluding executive transition costs which are excluded from Adjusted EBITDA and Adjusted FFO; Interest expense of $65.2 million to $66.2 million ; Income tax expense of $0.5 million to $1.5 million ; and 3,570,423 available rooms. Earnings Call The Company will host a conference call to discuss its second quarter results on Friday, August 2, 2024 , at 9:00 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 any future pandemic, epidemic or outbreak of any highly infectious disease 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) June 30, 2024 December 31, 2023 ASSETS (unaudited) Property and equipment, net $ 2,734,626 $ 2,755,195 Right-of-use assets 96,823 97,692 Restricted cash 45,205 45,576 Due from hotel managers 171,793 144,689 Prepaid and other assets 74,986 73,940 Cash and cash equivalents 125,219 121,595 Total assets $ 3,248,652 $ 3,238,687 LIABILITIES AND EQUITY Liabilities: Debt, net of unamortized debt issuance costs 1,172,479 1,177,005 Lease liabilities 113,779 112,866 Due to hotel managers 131,683 116,522 Deferred rent 71,554 69,209 Unfavorable contract liabilities, net 59,037 59,866 Accounts payable and accrued expenses 36,887 39,563 Distributions declared and unpaid 6,067 6,324 Deferred income related to key money, net 8,134 8,349 Total liabilities 1,599,620 1,589,704 Equity: Preferred stock, $0.01 par value; 10,000,000 shares authorized; 8.250% Series A Cumulative Redeemable Preferred Stock (liquidation preference $25.00 per share), 4,760,000 shares issued and outstanding at June 30, 2024 and December 31, 2023 48 48 Common stock, $0.01 par value; 400,000,000 shares authorized; 207,918,179 and 209,627,197 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively 2,079 2,096 Additional paid-in capital 2,274,223 2,291,297 Accumulated other comprehensive loss (2,077) (2,036) Distributions in excess of earnings (633,919) (649,330) Total stockholders' equity 1,640,354 1,642,075 Noncontrolling interests 8,678 6,908 Total equity 1,649,032 1,648,983 Total liabilities and equity $ 3,248,652 $ 3,238,687 DIAMONDROCK HOSPITALITY COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) (unaudited) Three Months Ended June 30 , Six Months Ended June 30 , 2024 2023 2024 2023 Revenues: Rooms $ 203,487 $ 197,318 $ 366,994 $ 357,991 Food and beverage 78,111 68,369 146,492 128,146 Other 27,682 25,560 52,217 48,663 Total revenues 309,280 291,247 565,703 534,800 Operating Expenses: Rooms 47,585 45,116 91,553 85,319 Food and beverage 50,717 45,908 97,956 89,058 Other departmental and support expenses 67,817 65,445 132,417 127,413 Management fees 8,008 6,885 13,318 11,873 Franchise fees 10,567 9,403 19,593 17,480 Other property-level expenses 27,188 26,934 53,806 51,051 Depreciation and amortization 27,873 27,840 56,186 55,312 Impairment losses — 941 — 941 Corporate expenses 28,519 8,284 37,423 16,151 Business interruption insurance income — (110) — (110) Total operating expenses, net 268,274 236,646 502,252 454,488 Interest expense 16,202 15,567 32,448 32,739 Interest (income) and other (income) expense, net (1,195) (522) (2,264) (945) Total other expenses, net 15,007 15,045 30,184 31,794 Income before income taxes 25,999 39,556 33,267 48,518 Income tax expense (1,368) (422) (278) (196) Net income 24,631 39,134 32,989 48,322 Less: Net income attributable to noncontrollinginterests (101) (169) (131) (201) Net income attributable to the Company 24,530 38,965 32,858 48,121 Distributions to preferred stockholders (2,454) (2,454) (4,908) (4,908) Net income attributable to common stockholders $ 22,076 $ 36,511 $ 27,950 $ 43,213 Earnings per share: Earnings per share available to commonstockholders - basic $ 0.10 $ 0.17 $ 0.13 $ 0.20 Earnings per share available to commonstockholders - diluted $ 0.10 $ 0.17 $ 0.13 $ 0.20 Weighted-average number of common shares outstanding: Basic 211,195,463 211,673,828 211,432,403 211,543,398 Diluted 212,016,445 212,161,950 212,276,815 212,092,590 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 June 30 , Six Months Ended June 30 , 2024 2023 2024 2023 Net income $ 24,631 $ 39,134 $ 32,989 $ 48,322 Interest expense 16,202 15,567 32,448 32,739 Income tax expense 1,368 422 278 196 Real estate related depreciation and amortization 27,873 27,840 56,186 55,312 EBITDA 70,074 82,963 121,901 136,569 Impairment losses — 941 — 941 EBITDAre 70,074 83,904 121,901 137,510 Non-cash lease expense and other amortization 1,555 1,537 3,073 3,087 Severance costs 20,362 — 20,362 — Hotel pre-opening costs 535 326 769 542 Adjusted EBITDA 92,526 85,767 146,105 141,139 Corporate expenses 8,157 8,284 17,061 16,151 Interest (income) and other (income) expense, net (1,195) (522) (2,264) (945) Hotel Adjusted EBITDA $ 99,488 $ 93,529 $ 160,902 $ 156,345 Full Year 2024 Guidance Low End High End Net income $ 73,955 $ 87,955 Interest expense 66,183 65,183 Income tax expense 500 1,500 Real estate related depreciation and amortization 110,000 108,000 EBITDA/EBITDAre 250,638 262,638 Non-cash lease expense and other amortization 6,200 6,200 Severance costs 20,362 20,362 Hotel pre-opening costs 800 800 Adjusted EBITDA $ 278,000 $ 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 June 30 , Six Months Ended June 30 , 2024 2023 2024 2023 Net income $ 24,631 $ 39,134 $ 32,989 $ 48,322 Real estate related depreciation and amortization 27,873 27,840 56,186 55,312 Impairment losses — 941 — 941 FFO 52,504 67,915 89,175 104,575 Distribution to preferred stockholders (2,454) (2,454) (4,908) (4,908) FFO available to common stock and unit holders 50,050 65,461 84,267 99,667 Non-cash lease expense and other amortization 1,555 1,537 3,073 3,087 Severance costs 20,362 — 20,362 — Hotel pre-opening costs 535 326 769 542 Fair value adjustments to interest rate swaps — 19 — 2,033 Adjusted FFO available to common stock and unit holders $ 72,502 $ 67,343 $ 108,471 $ 105,329 Adjusted FFO available to common stock and unit holders, per diluted share $ 0.34 $ 0.32 $ 0.51 $ 0.49 Full Year 2024 Guidance Low End High End Net income $ 73,955 $ 87,955 Real estate related depreciation and amortization 110,000 108,000 FFO 183,955 195,955 Distribution to preferred stockholders (9,817) (9,817) FFO available to common stock and unit holders 174,138 186,138 Non-cash lease expense and other amortization 6,200 6,200 Severance costs 20,362 20,362 Hotel pre-opening costs 800 800 Adjusted FFO available to common stock and unit holders $ 201,500 $ 213,500 Adjusted FFO available to common stock and unit holders, per diluted share $ 0.95 $ 1.00 Reconciliation of Comparable Operating Results The following presents the revenues, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA Margin together with comparable prior year results (in thousands): Three Months Ended June 30 , Six Months Ended June 30 , 2024 2023 2024 2023 Revenues $ 309,280 $ 291,247 $ 565,703 $ 534,800 Hotel revenues from prior ownership (1) — 3,812 — 7,293 Comparable Revenues $ 309,280 $ 295,059 $ 565,703 $ 542,093 Hotel Adjusted EBITDA $ 99,488 $ 93,529 $ 160,902 $ 156,345 Hotel Adjusted EBITDA from prior ownership (1) — 806 — 1,326 Comparable Hotel Adjusted EBITDA $ 99,488 $ 94,335 $ 160,902 $ 157,671 Hotel Adjusted EBITDA Margin 32.17 % 32.11 % 28.44 % 29.23 % Comparable Hotel Adjusted EBITDA Margin 32.17 % 31.97 % 28.44 % 29.09 % (1) Amounts represent the pre-acquisition operating results for Chico Hot Springs Resort from January 1, 2023 to June 30, 2023 . The pre-acquisition operating results were obtained from the seller of the hotel 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. 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. Quarter 1, 2023 Quarter 2, 2023 Quarter 3, 2023 Quarter 4, 2023 Full Year 2023 ADR $ 276.43 $ 292.67 $ 273.28 $ 282.57 $ 281.36 Occupancy 66.9 % 76.6 % 76.4 % 68.4 % 72.1 % RevPAR $ 185.00 $ 224.27 $ 208.66 $ 193.16 $ 202.81 Total RevPAR $ 282.28 $ 333.24 $ 310.54 $ 294.05 $ 305.08 Revenues (in thousands) $ 247,034 $ 295,059 $ 278,162 $ 263,547 $ 1,083,802 Hotel Adjusted EBITDA (in thousands) $ 63,336 $ 94,335 $ 80,492 $ 64,817 $ 302,980 Hotel Adjusted EBITDA Margin 25.64 % 31.97 % 28.94 % 24.59 % 27.96 % Available Rooms 875,126 885,430 895,743 896,260 3,552,559 Quarter 1, 2024 Quarter 2, 2024 ADR $ 269.53 $ 294.55 Occupancy 68.4 % 77.8 % RevPAR $ 184.23 $ 229.21 Total RevPAR $ 288.92 $ 348.37 Revenues (in thousands) $ 256,423 $ 309,280 Hotel Adjusted EBITDA (in thousands) $ 61,414 $ 99,488 Hotel Adjusted EBITDA Margin 23.95 % 32.17 % Available Rooms 887,523 887,796 Market Capitalization as of June 30, 2024 (in thousands) Enterprise Value Common equity capitalization (at June 30, 2024 closing price of $8.45 /share) $ 1,787,852 Preferred equity capitalization (at liquidation value of $25.00 /share) 119,000 Consolidated debt (face amount) 1,173,285 Cash and cash equivalents (125,219) Total enterprise value $ 2,954,918 Share Reconciliation Common shares outstanding 207,918 Operating partnership units 1,134 Unvested restricted stock held by management and employees 624 Share grants under deferred compensation plan 1,904 Combined shares and units 211,580 Debt Summary as of June 30, 2024 (dollars in thousands) Loan Interest Rate Term Outstanding Principal Maturity Courtyard New York Manhattan / Midtown East 4.40 % Fixed $ 73,416 August 2024 Worthington Renaissance Fort Worth Hotel 3.66 % Fixed 72,756 May 2025 Hotel Clio 4.33 % Fixed 55,382 July 2025 Westin Boston Seaport District 4.36 % Fixed 171,731 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) Total debt 1,173,285 Unamortized debt issuance costs (3) (806) Debt, net of unamortized debt issuance costs $ 1,172,479 Weighted-average interest rate of fixed rate debt 4.09 % Total weighted-average interest rate (4) 5.22 % (1) Interest rate as of June 30, 2024 was 6.80%, which excludes effect of interest rate swaps. (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 – Second Quarter Number of Rooms ADR Occupancy RevPAR 2Q 2024 2Q 2023 B/(W) 2023 2Q 2024 2Q 2023 B/(W) 2023 2Q 2024 2Q 2023 B/(W) 2023 Atlanta Marriott Alpharetta 318 $ 156.89 $ 150.26 4.4 % 69.7 % 73.5 % (3.8) % $ 109.41 $ 110.41 (0.9) % Bourbon Orleans Hotel 220 $ 243.76 $ 242.09 0.7 % 78.6 % 83.7 % (5.1) % $ 191.53 $ 202.69 (5.5) % Cavallo Point , The Lodge at the Golden Gate 142 $ 574.78 $ 613.11 (6.3) % 61.7 % 56.8 % 4.9 % $ 354.87 $ 348.54 1.8 % Chicago Marriott Downtown Magnificent Mile 1,200 $ 279.63 $ 273.80 2.1 % 67.4 % 70.8 % (3.4) % $ 188.37 $ 193.76 (2.8) % Chico Hot Springs Resort & Day Spa 117 $ 201.95 $ 178.19 13.3 % 72.5 % 68.4 % 4.1 % $ 146.43 $ 121.87 20.2 % Courtyard Denver Downtown 177 $ 221.52 $ 233.95 (5.3) % 83.7 % 83.3 % 0.4 % $ 185.35 $ 194.88 (4.9) % Courtyard New York Manhattan/Fifth Avenue 189 $ 316.32 $ 306.37 3.2 % 88.9 % 94.7 % (5.8) % $ 281.34 $ 290.00 (3.0) % Courtyard New York Manhattan/ Midtown East 321 $ 359.88 $ 348.02 3.4 % 94.0 % 92.4 % 1.6 % $ 338.22 $ 321.54 5.2 % Embassy Suites by Hilton Bethesda 272 $ 190.12 $ 183.55 3.6 % 83.5 % 80.0 % 3.5 % $ 158.69 $ 146.80 8.1 % Havana Cabana Key West 106 $ 287.85 $ 293.87 (2.0) % 83.1 % 86.7 % (3.6) % $ 239.30 $ 254.75 (6.1) % Henderson Beach Resort 269 $ 464.72 $ 500.73 (7.2) % 74.4 % 74.1 % 0.3 % $ 345.84 $ 370.82 (6.7) % Henderson Park Inn 37 $ 684.85 $ 680.86 0.6 % 84.9 % 87.2 % (2.3) % $ 581.11 $ 593.91 (2.2) % Hilton Garden Inn New York/Times Square Central 282 $ 284.16 $ 283.37 0.3 % 89.5 % 85.6 % 3.9 % $ 254.22 $ 242.70 4.7 % Hotel Champlain Burlington 258 $ 240.84 $ 242.28 (0.6) % 75.9 % 79.0 % (3.1) % $ 182.85 $ 191.35 (4.4) % Hotel Clio 199 $ 327.64 $ 326.27 0.4 % 83.7 % 74.2 % 9.5 % $ 274.30 $ 241.96 13.4 % Hotel Emblem San Francisco 96 $ 184.02 $ 221.08 (16.8) % 62.5 % 66.8 % (4.3) % $ 115.04 $ 147.71 (22.1) % Kimpton Hotel Palomar Phoenix 242 $ 218.99 $ 204.26 7.2 % 76.2 % 78.2 % (2.0) % $ 166.96 $ 159.72 4.5 % Kimpton Shorebreak Fort Lauderdale Beach Resort 96 $ 182.23 $ 202.15 (9.9) % 78.5 % 65.4 % 13.1 % $ 142.99 $ 132.13 8.2 % Kimpton Shorebreak Huntington Beach Resort 157 $ 326.16 $ 337.46 (3.3) % 85.7 % 83.3 % 2.4 % $ 279.54 $ 280.94 (0.5) % L'Auberge de Sedona 88 $ 951.60 $ 979.53 (2.9) % 74.2 % 67.9 % 6.3 % $ 705.97 $ 664.92 6.2 % Lake Austin Spa Resort 40 $ 1,065.58 $ 1,101.21 (3.2) % 70.6 % 66.9 % 3.7 % $ 752.64 $ 736.66 2.2 % Margaritaville Beach House Key West 186 $ 371.14 $ 396.70 (6.4) % 88.5 % 90.0 % (1.5) % $ 328.50 $ 356.95 (8.0) % Orchards Inn Sedona 70 $ 301.79 $ 303.14 (0.4) % 68.1 % 69.9 % (1.8) % $ 205.38 $ 211.91 (3.1) % Salt Lake City Marriott Downtown at City Creek 510 $ 196.94 $ 190.99 3.1 % 73.0 % 61.1 % 11.9 % $ 143.79 $ 116.64 23.3 % The Dagny Boston 403 $ 302.27 $ 327.33 (7.7) % 89.3 % 89.1 % 0.2 % $ 270.03 $ 291.81 (7.5) % The Gwen 311 $ 331.59 $ 339.69 (2.4) % 81.5 % 78.4 % 3.1 % $ 270.37 $ 266.27 1.5 % The Hythe Vail 344 $ 266.05 $ 261.14 1.9 % 50.8 % 34.3 % 16.5 % $ 135.12 $ 89.56 50.9 % The Landing Lake Tahoe Resort & Spa 82 $ 361.62 $ 390.10 (7.3) % 64.9 % 50.6 % 14.3 % $ 234.60 $ 197.24 18.9 % The Lindy Renaissance Charleston Hotel 167 $ 388.06 $ 393.54 (1.4) % 94.0 % 94.1 % (0.1) % $ 364.77 $ 370.39 (1.5) % The Lodge at Sonoma Resort 182 $ 435.59 $ 497.28 (12.4) % 72.4 % 65.2 % 7.2 % $ 315.21 $ 324.37 (2.8) % Tranquility Bay Beachfront Resort 103 $ 605.29 $ 663.23 (8.7) % 79.7 % 79.9 % (0.2) % $ 482.14 $ 529.64 (9.0) % Westin Boston Waterfront 793 $ 281.74 $ 267.62 5.3 % 89.8 % 91.4 % (1.6) % $ 253.03 $ 244.72 3.4 % Westin Fort Lauderdale Beach Resort 433 $ 247.85 $ 258.71 (4.2) % 80.8 % 73.7 % 7.1 % $ 200.38 $ 190.66 5.1 % Westin San Diego Bayview 436 $ 236.19 $ 205.93 14.7 % 75.3 % 80.0 % (4.7) % $ 177.91 $ 164.71 8.0 % Westin Washington D.C. City Center 410 $ 281.63 $ 250.82 12.3 % 77.6 % 78.0 % (0.4) % $ 218.41 $ 195.73 11.6 % Worthington Renaissance Fort Worth Hotel 504 $ 217.36 $ 198.93 9.3 % 76.6 % 79.1 % (2.5) % $ 166.58 $ 157.31 5.9 % Comparable Total (1) 9,760 $ 294.55 $ 292.67 0.6 % 77.8 % 76.6 % 1.2 % $ 229.21 $ 224.27 2.2 % (1) Amounts include the pre-acquisition operating results of Chico Hot Springs Resort & Day Spa acquired in 2023. Operating Statistics – Year to Date Number of Rooms ADR Occupancy RevPAR YTD 2024 YTD 2023 B/(W) 2023 YTD 2024 YTD 2023 B/(W) 2023 YTD 2024 YTD 2023 B/(W) 2023 Atlanta Marriott Alpharetta 318 $ 160.91 $ 154.36 4.2 % 64.4 % 68.0 % (3.6) % $ 103.69 $ 105.04 (1.3) % Bourbon Orleans Hotel 220 $ 252.55 $ 250.91 0.7 % 77.6 % 82.3 % (4.7) % $ 196.01 $ 206.55 (5.1) % Cavallo Point , The Lodge at the Golden Gate 142 $ 563.98 $ 591.51 (4.7) % 56.4 % 54.8 % 1.6 % $ 318.00 $ 324.01 (1.9) % Chicago Marriott Downtown Magnificent Mile 1,200 $ 236.23 $ 243.61 (3.0) % 56.9 % 55.2 % 1.7 % $ 134.30 $ 134.56 (0.2) % Chico Hot Springs Resort & Day Spa 117 $ 191.05 $ 171.34 11.5 % 72.1 % 70.8 % 1.3 % $ 137.79 $ 121.30 13.6 % Courtyard Denver Downtown 177 $ 192.63 $ 209.18 (7.9) % 75.7 % 76.2 % (0.5) % $ 145.88 $ 159.47 (8.5) % Courtyard New York Manhattan/Fifth Avenue 189 $ 262.20 $ 254.77 2.9 % 89.0 % 94.1 % (5.1) % $ 233.30 $ 239.68 (2.7) % Courtyard New York Manhattan/ Midtown East 321 $ 305.05 $ 292.46 4.3 % 92.6 % 90.2 % 2.4 % $ 282.36 $ 263.73 7.1 % Embassy Suites by Hilton Bethesda 272 $ 177.12 $ 165.60 7.0 % 71.2 % 70.9 % 0.3 % $ 126.10 $ 117.35 7.5 % Havana Cabana Key West 106 $ 348.71 $ 336.84 3.5 % 84.4 % 87.3 % (2.9) % $ 294.27 $ 294.11 0.1 % Henderson Park Resort 269 $ 415.52 $ 450.86 (7.8) % 57.5 % 58.7 % (1.2) % $ 239.12 $ 264.61 (9.6) % Henderson Park Inn 37 $ 574.38 $ 615.29 (6.6) % 71.0 % 65.0 % 6.0 % $ 407.88 $ 399.75 2.0 % Hilton Garden Inn New York/Times Square Central 282 $ 232.97 $ 238.67 (2.4) % 89.6 % 85.5 % 4.1 % $ 208.70 $ 204.00 2.3 % Hotel Champlain Burlington 258 $ 201.16 $ 208.51 (3.5) % 66.1 % 71.1 % (5.0) % $ 132.90 $ 148.29 (10.4) % Hotel Clio 199 $ 300.99 $ 313.65 (4.0) % 74.5 % 68.0 % 6.5 % $ 224.14 $ 213.28 5.1 % Hotel Emblem San Francisco 96 $ 218.08 $ 252.09 (13.5) % 60.7 % 65.3 % (4.6) % $ 132.27 $ 164.54 (19.6) % Kimpton Hotel Palomar Phoenix 242 $ 247.69 $ 251.11 (1.4) % 79.1 % 75.9 % 3.2 % $ 195.90 $ 190.70 2.7 % Kimpton Shorebreak Fort Lauderdale Beach Resort 96 $ 223.27 $ 242.58 (8.0) % 83.8 % 76.4 % 7.4 % $ 187.08 $ 185.27 1.0 % Kimpton Shorebreak Huntington Beach Resort 157 $ 307.37 $ 316.01 (2.7) % 82.1 % 79.5 % 2.6 % $ 252.39 $ 251.10 0.5 % L'Auberge de Sedona 88 $ 909.10 $ 969.79 (6.3) % 69.6 % 62.7 % 6.9 % $ 632.50 $ 608.25 4.0 % Lake Austin Spa Resort 40 $ 1,036.17 $ 1,110.65 (6.7) % 64.1 % 61.3 % 2.8 % $ 664.40 $ 680.96 (2.4) % Margaritaville Beach House Key West 186 $ 443.07 $ 444.25 (0.3) % 90.1 % 87.6 % 2.5 % $ 399.42 $ 388.99 2.7 % Orchards Inn Sedona 70 $ 299.20 $ 297.81 0.5 % 62.6 % 64.7 % (2.1) % $ 187.32 $ 192.81 (2.8) % Salt Lake City Marriott Downtown at City Creek 510 $ 197.58 $ 195.54 1.0 % 69.4 % 64.1 % 5.3 % $ 137.07 $ 125.36 9.3 % The Dagny Boston 403 $ 252.32 $ 292.45 (13.7) % 83.1 % 69.2 % 13.9 % $ 209.63 $ 202.29 3.6 % The Gwen 311 $ 278.74 $ 286.85 (2.8) % 73.7 % 71.8 % 1.9 % $ 205.54 $ 206.01 (0.2) % The Hythe Vail 344 $ 484.14 $ 520.67 (7.0) % 63.6 % 59.1 % 4.5 % $ 307.95 $ 307.67 0.1 % The Landing Lake Tahoe Resort & Spa 82 $ 349.50 $ 379.67 (7.9) % 55.8 % 40.8 % 15.0 % $ 194.98 $ 155.02 25.8 % The Lindy Renaissance Charleston Hotel 167 $ 355.33 $ 365.12 (2.7) % 90.3 % 89.3 % 1.0 % $ 320.80 $ 326.19 (1.7) % The Lodge at Sonoma Resort 182 $ 387.62 $ 435.66 (11.0) % 58.9 % 59.9 % (1.0) % $ 228.16 $ 260.85 (12.5) % Tranquility Bay Beachfront Resort 103 $ 704.50 $ 735.05 (4.2) % 77.6 % 77.0 % 0.6 % $ 546.47 $ 565.82 (3.4) % Westin Boston Waterfront 793 $ 252.99 $ 239.76 5.5 % 83.9 % 81.6 % 2.3 % $ 212.21 $ 195.76 8.4 % Westin Fort Lauderdale Beach Resort 433 $ 290.74 $ 307.21 (5.4) % 84.2 % 80.8 % 3.4 % $ 244.94 $ 248.15 (1.3) % Westin San Diego Bayview 436 $ 228.13 $ 210.13 8.6 % 68.3 % 77.0 % (8.7) % $ 155.87 $ 161.75 (3.6) % Westin Washington D.C. City Center 410 $ 251.10 $ 234.16 7.2 % 73.4 % 73.0 % 0.4 % $ 184.20 $ 171.01 7.7 % Worthington Renaissance Fort Worth Hotel 504 $ 213.47 $ 197.81 7.9 % 73.3 % 76.6 % (3.3) % $ 156.46 $ 151.51 3.3 % Comparable Total (1) 9,760 $ 282.85 $ 285.15 (0.8) % 73.1 % 71.8 % 1.3 % $ 206.72 $ 204.75 1.0 % (1) Amounts include the pre-acquisition operating results of Chico Hot Springs Resort & Day Spa acquired in 2023. Hotel Adjusted EBITDA Reconciliation - Second Quarter 2024 Net Income/ (Loss) Plus: Plus: Plus: Equals: Hotel Adjusted EBITDA Total Revenues Depreciation Interest Expense Adjustments (1) Atlanta Marriott Alpharetta $ 4,577 $ 1,360 $ 347 $ — $ — $ 1,707 Bourbon Orleans Hotel $ 4,828 $ 1,135 $ 883 $ — $ 3 $ 2,021 Cavallo Point , The Lodge at the Golden Gate $ 12,647 $ 2,241 $ 1,409 $ — $ 94 $ 3,744 Chicago Marriott Downtown Magnificent Mile $ 33,458 $ 8,301 $ 3,058 $ 6 $ (397) $ 10,968 Chico Hot Springs Resort & Day Spa $ 3,657 $ 58 $ 396 $ — $ 2 $ 456 Courtyard Denver Downtown $ 3,297 $ 1,175 $ 331 $ — $ — $ 1,506 Courtyard New York Manhattan/Fifth Avenue $ 4,962 $ 378 $ 324 $ — $ 253 $ 955 Courtyard New York Manhattan/ Midtown East $ 10,186 $ 2,305 $ 490 $ 870 $ — $ 3,665 Embassy Suites by Hilton Bethesda $ 4,430 $ (930) $ 638 $ — $ 1,454 $ 1,162 Havana Cabana Key West $ 3,172 $ 548 $ 444 $ — $ — $ 992 Henderson Beach Resort $ 15,016 $ 3,854 $ 1,091 $ — $ — $ 4,945 Henderson Park Inn $ 3,029 $ 1,345 $ 268 $ — $ — $ 1,613 Hilton Garden Inn New York/Times Square Central $ 7,295 $ 1,517 $ 650 $ — $ — $ 2,167 Hotel Champlain Burlington $ 5,710 $ 604 $ 621 $ — $ — $ 1,225 Hotel Clio $ 8,373 $ 1,472 $ 799 $ 618 $ 5 $ 2,894 Hotel Emblem San Francisco $ 1,247 $ (313) $ 313 $ — $ — $ — Kimpton Hotel Palomar Phoenix $ 5,997 $ 660 $ 464 $ — $ 193 $ 1,317 Kimpton Shorebreak Fort Lauderdale Beach Resort $ 2,335 $ (311) $ 351 $ — $ — $ 40 Kimpton Shorebreak Huntington Beach Resort $ 5,748 $ 1,884 $ 342 $ — $ — $ 2,226 L'Auberge de Sedona $ 9,826 $ 3,194 $ 346 $ — $ — $ 3,540 Lake Austin Spa Resort $ 6,280 $ 1,384 $ 701 $ — $ — $ 2,085 Margaritaville Beach House Key West $ 7,805 $ 2,621 $ 535 $ — $ — $ 3,156 Orchards Inn Sedona $ 2,580 $ 693 $ 90 $ — $ 42 $ 825 Salt Lake City Marriott Downtown at City Creek $ 9,024 $ 2,570 $ 965 $ — $ 28 $ 3,563 The Dagny Boston $ 10,934 $ 2,820 $ 1,656 $ — $ — $ 4,476 The Gwen $ 11,467 $ 2,926 $ 782 $ — $ — $ 3,708 The Hythe Vail $ 7,994 $ 196 $ 1,172 $ — $ — $ 1,368 The Landing Lake Tahoe Resort & Spa $ 3,312 $ 656 $ 220 $ — $ — $ 876 The Lindy Renaissance Charleston Hotel $ 6,726 $ 2,977 $ 388 $ — $ — $ 3,365 The Lodge at Sonoma Resort $ 8,205 $ 2,374 $ 505 $ — $ — $ 2,879 Tranquility Bay Beachfront Resort $ 5,892 $ 1,521 $ 453 $ — $ — $ 1,974 Westin Boston Seaport District $ 29,752 $ 5,087 $ 2,435 $ 1,940 $ (122) $ 9,340 Westin Fort Lauderdale Beach Resort $ 16,544 $ 2,763 $ 1,053 $ — $ — $ 3,816 Westin San Diego Bayview $ 8,770 $ 1,283 $ 1,331 $ — $ — $ 2,614 Westin Washington D.C. City Center $ 10,029 $ 2,184 $ 1,148 $ — $ — $ 3,332 Worthington Renaissance Fort Worth Hotel $ 14,176 $ 3,396 $ 874 $ 698 $ — $ 4,968 Comparable Total $ 309,280 $ 65,928 $ 27,873 $ 4,132 $ 1,555 $ 99,488 (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. Hotel Adjusted EBITDA Reconciliation - Second Quarter 2023 Net Income/ (Loss) Plus: Plus: Plus: Equals: Hotel Total Revenues Depreciation Interest Expense Adjustments (1) Adjusted EBITDA Atlanta Marriott Alpharetta $ 4,240 $ 1,122 $ 359 $ — $ — $ 1,481 Bourbon Orleans Hotel $ 4,947 $ 1,326 $ 850 $ — $ 6 $ 2,182 Cavallo Point , The Lodge at the Golden Gate $ 12,255 $ 2,205 $ 1,396 $ — $ 94 $ 3,695 Chicago Marriott Downtown Magnificent Mile $ 31,983 $ 8,556 $ 3,538 $ 6 $ (397) $ 11,703 Courtyard Denver Downtown $ 3,455 $ 1,238 $ 378 $ — $ — $ 1,616 Courtyard New York Manhattan/Fifth Avenue $ 5,081 $ 849 $ 401 $ — $ 253 $ 1,503 Courtyard New York Manhattan/ Midtown East $ 9,763 $ 2,281 $ 504 $ 891 $ — $ 3,676 Embassy Suites by Hilton Bethesda $ 4,187 $ (989) $ 568 $ — $ 1,467 $ 1,046 Havana Cabana Key West $ 3,338 $ 786 $ 309 $ — $ — $ 1,095 Henderson Beach Resort $ 14,243 $ 3,466 $ 1,034 $ — $ — $ 4,500 Henderson Park Inn $ 3,126 $ 1,387 $ 250 $ — $ — $ 1,637 Hilton Garden Inn New York/Times Square Central $ 6,855 $ 1,216 $ 645 $ — $ — $ 1,861 Hotel Champlain Burlington $ 6,207 $ 1,711 $ 560 $ — $ — $ 2,271 Hotel Clio $ 6,781 $ 203 $ 860 $ 633 $ 5 $ 1,701 Hotel Emblem San Francisco $ 1,538 $ (447) $ 296 $ — $ — $ (151) Kimpton Hotel Palomar Phoenix $ 6,201 $ 944 $ 488 $ — $ 178 $ 1,610 Kimpton Shorebreak Fort Lauderdale Beach Resort $ 1,971 $ (397) $ 306 $ — $ — $ (91) Kimpton Shorebreak Huntington Beach Resort $ 5,849 $ 1,834 $ 383 $ — $ — $ 2,217 L'Auberge de Sedona $ 8,755 $ 2,546 $ 383 $ — $ — $ 2,929 Lake Austin Spa Resort $ 5,970 $ 1,264 $ 641 $ — $ — $ 1,905 Margaritaville Beach House Key West $ 8,201 $ 2,806 $ 791 $ — $ — $ 3,597 Orchards Inn Sedona $ 2,591 $ 661 $ 89 $ — $ 42 $ 792 Salt Lake City Marriott Downtown at City Creek $ 7,312 $ 2,021 $ 668 $ — $ 11 $ 2,700 The Dagny Boston $ 11,812 $ 3,122 $ 1,548 $ — $ — $ 4,670 The Gwen $ 10,790 $ 2,300 $ 1,050 $ — $ — $ 3,350 The Hythe Vail $ 5,412 $ (1,177) $ 1,200 $ — $ — $ 23 The Landing Lake Tahoe Resort & Spa $ 2,754 $ 405 $ 309 $ — $ — $ 714 The Lindy Renaissance Charleston Hotel $ 6,849 $ 2,912 $ 476 $ — $ — $ 3,388 The Lodge at Sonoma Resort $ 8,960 $ 2,184 $ 641 $ — $ — $ 2,825 Tranquility Bay Beachfront Resort $ 6,352 $ 1,649 $ 437 $ — $ — $ 2,086 Westin Boston Seaport District $ 27,399 $ 4,001 $ 2,478 $ 1,990 $ (122) $ 8,347 Westin Fort Lauderdale Beach Resort $ 16,236 $ 2,504 $ 1,015 $ — $ — $ 3,519 Westin San Diego Bayview $ 8,418 $ 1,425 $ 855 $ — $ — $ 2,280 Westin Washington D.C. City Center $ 8,948 $ 1,743 $ 1,024 $ — $ — $ 2,767 Worthington Renaissance Fort Worth Hotel $ 12,468 $ 2,266 $ 1,110 $ 715 $ — $ 4,091 Total $ 291,247 $ 59,923 $ 27,840 $ 4,235 $ 1,537 $ 93,529 Add: Prior Ownership Results (2) $ 3,812 $ 581 $ 225 $ — $ — $ 806 Comparable Total $ 295,059 $ 60,504 $ 28,065 $ 4,235 $ 1,537 $ 94,335 (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 Chico Hot Springs Resort & Day Spa acquired in 2023. Hotel Adjusted EBITDA Reconciliation - Year to Date 2024 Total Revenues Net Income/ (Loss) Plus: Depreciation Plus: Interest Expense Plus: Adjustments (1) Equals: Hotel Adjusted EBITDA Atlanta Marriott Alpharetta $ 8,764 $ 2,450 $ 722 $ — $ — $ 3,172 Bourbon Orleans Hotel $ 9,819 $ 2,450 $ 1,757 $ — $ (26) $ 4,181 Cavallo Point , The Lodge at the Golden Gate $ 22,493 $ 2,176 $ 2,870 $ — $ 187 $ 5,233 Chicago Marriott Downtown Magnificent Mile $ 52,744 $ 6,724 $ 6,473 $ 12 $ (795) $ 12,414 Chico Hot Springs Resort & Day Spa $ 6,985 $ (199) $ 783 $ — $ 3 $ 587 Courtyard Denver Downtown $ 5,284 $ 1,342 $ 711 $ — $ — $ 2,053 Courtyard New York Manhattan/Fifth Avenue $ 8,263 $ (562) $ 683 $ — $ 507 $ 628 Courtyard New York Manhattan/ Midtown East $ 17,114 $ 1,736 $ 1,016 $ 1,746 $ — $ 4,498 Embassy Suites by Hilton Bethesda $ 7,070 $ (2,965) $ 1,213 $ — $ 2,918 $ 1,166 Havana Cabana Key West $ 7,306 $ 2,012 $ 742 $ — $ — $ 2,754 Henderson Beach Resort $ 21,735 $ 2,897 $ 2,153 $ — $ — $ 5,050 Henderson Park Inn $ 4,307 $ 1,228 $ 542 $ — $ — $ 1,770 Hilton Garden Inn New York/Times Square Central $ 12,241 $ 981 $ 1,300 $ — $ — $ 2,281 Hotel Champlain Burlington $ 8,386 $ (207) $ 1,195 $ — $ — $ 988 Hotel Clio $ 13,801 $ 438 $ 1,644 $ 1,239 $ 10 $ 3,331 Hotel Emblem San Francisco $ 2,873 $ (350) $ 615 $ — $ — $ 265 Kimpton Hotel Palomar Phoenix $ 13,727 $ 2,907 $ 965 $ — $ 392 $ 4,264 Kimpton Shorebreak Fort Lauderdale Beach Resort $ 5,633 $ 175 $ 708 $ — $ — $ 883 Kimpton Shorebreak Huntington Beach Resort $ 10,754 $ 2,864 $ 722 $ — $ — $ 3,586 L'Auberge de Sedona $ 17,165 $ 4,821 $ 732 $ — $ — $ 5,553 Lake Austin Spa Resort $ 11,117 $ 1,696 $ 1,382 $ — $ — $ 3,078 Margaritaville Beach House Key West $ 17,912 $ 6,821 $ 1,301 $ — $ — $ 8,122 Orchards Inn Sedona $ 4,611 $ 1,108 $ 177 $ — $ 84 $ 1,369 Salt Lake City Marriott Downtown at City Creek $ 17,426 $ 4,726 $ 1,883 $ — $ 38 $ 6,647 The Dagny Boston $ 17,359 $ 1,704 $ 3,186 $ — $ — $ 4,890 The Gwen $ 16,940 $ 1,060 $ 1,730 $ — $ — $ 2,790 The Hythe Vail $ 28,490 $ 9,705 $ 2,353 $ — $ — $ 12,058 The Landing Lake Tahoe Resort & Spa $ 5,471 $ 542 $ 439 $ — $ — $ 981 The Lindy Renaissance Charleston Hotel $ 12,001 $ 4,678 $ 781 $ — $ — $ 5,459 The Lodge at Sonoma Resort $ 12,742 $ 1,735 $ 1,123 $ — $ — $ 2,858 Tranquility Bay Beachfront Resort $ 13,051 $ 3,459 $ 905 $ — $ — $ 4,364 Westin Boston Seaport District $ 50,856 $ 3,886 $ 4,924 $ 3,893 $ (245) $ 12,458 Westin Fort Lauderdale Beach Resort $ 40,568 $ 11,024 $ 2,136 $ — $ — $ 13,160 Westin San Diego Bayview $ 16,447 $ 2,085 $ 2,399 $ — $ — $ 4,484 Westin Washington D.C. City Center $ 17,495 $ 2,538 $ 2,196 $ — $ — $ 4,734 Worthington Renaissance Fort Worth Hotel $ 26,753 $ 5,570 $ 1,725 $ 1,400 $ — $ 8,695 Comparable Total $ 565,703 $ 93,255 $ 56,186 $ 8,290 $ 3,073 $ 160,902 (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. Hotel Adjusted EBITDA Reconciliation - Year to Date 2023 Net Income /(Loss) Plus: Plus: Plus: Equals: Hotel Total Revenues Depreciation Interest Expense Adjustments (1) Adjusted EBITDA Atlanta Marriott Alpharetta $ 8,257 $ 2,062 $ 724 $ — $ — $ 2,786 Bourbon Orleans Hotel $ 10,011 $ 2,755 $ 1,687 $ — $ 13 $ 4,455 Cavallo Point , The Lodge at the Golden Gate $ 22,648 $ 3,099 $ 2,788 $ — $ 187 $ 6,074 Chicago Marriott Downtown Magnificent Mile $ 47,267 $ 5,961 $ 7,192 $ 12 $ (795) $ 12,370 Courtyard Denver Downtown $ 5,653 $ 1,514 $ 754 $ — $ — $ 2,268 Courtyard New York Manhattan/Fifth Avenue $ 8,344 $ 94 $ 746 $ — $ 507 $ 1,347 Courtyard New York Manhattan/ Midtown East $ 15,969 $ 1,279 $ 1,005 $ 1,777 $ — $ 4,061 Embassy Suites by Hilton Bethesda $ 6,752 $ (3,152) $ 1,143 $ — $ 2,946 $ 937 Havana Cabana Key West $ 7,339 $ 2,329 $ 587 $ — $ — $ 2,916 Henderson Beach Resort $ 20,800 $ 2,458 $ 2,033 $ — $ — $ 4,491 Henderson Park Inn $ 4,198 $ 1,139 $ 502 $ — $ — $ 1,641 Hilton Garden Inn New York/Times Square Central $ 11,608 $ 981 $ 1,284 $ — $ — $ 2,265 Hotel Champlain Burlington $ 9,479 $ 1,281 $ 1,128 $ — $ — $ 2,409 Hotel Clio $ 12,135 $ (717) $ 1,722 $ 1,262 $ 10 $ 2,277 Hotel Emblem San Francisco $ 3,539 $ (477) $ 594 $ — $ — $ 117 Kimpton Hotel Palomar Phoenix $ 13,855 $ 2,924 $ 1,149 $ — $ 359 $ 4,432 Kimpton Shorebreak Fort Lauderdale Beach Resort $ 5,146 $ 187 $ 609 $ — $ — $ 796 Kimpton Shorebreak Huntington Beach Resort $ 10,376 $ 2,614 $ 796 $ — $ — $ 3,410 L'Auberge de Sedona $ 15,616 $ 3,982 $ 744 $ — $ — $ 4,726 Lake Austin Spa Resort $ 10,919 $ 1,719 $ 1,269 $ — $ — $ 2,988 Margaritaville Beach House Key West $ 17,422 $ 6,884 $ 1,591 $ — $ — $ 8,475 Orchards Inn Sedona $ 4,639 $ 1,100 $ 180 $ — $ 84 $ 1,364 Salt Lake City Marriott Downtown at City Creek $ 15,604 $ 4,514 $ 1,234 $ — $ 21 $ 5,769 The Dagny Boston $ 16,598 $ 1,578 $ 2,672 $ — $ — $ 4,250 The Gwen $ 16,379 $ 786 $ 2,133 $ — $ — $ 2,919 The Hythe Vail $ 27,307 $ 9,477 $ 2,402 $ — $ — $ 11,879 The Landing Lake Tahoe Resort & Spa $ 4,307 $ (155) $ 532 $ — $ — $ 377 The Lindy Renaissance Charleston Hotel $ 12,250 $ 4,786 $ 941 $ — $ — $ 5,727 The Lodge at Sonoma Resort $ 15,066 $ 2,581 $ 1,298 $ — $ — $ 3,879 Tranquility Bay Beachfront Resort $ 13,334 $ 3,688 $ 866 $ — $ — $ 4,554 Westin Boston Seaport District $ 45,431 $ 2,135 $ 4,949 $ 3,970 $ (245) $ 10,809 Westin Fort Lauderdale Beach Resort $ 39,219 $ 10,810 $ 2,068 $ — $ — $ 12,878 Westin San Diego Bayview $ 17,118 $ 3,437 $ 1,710 $ — $ — $ 5,147 Westin Washington D.C. City Center $ 15,655 $ 1,679 $ 2,044 $ — $ — $ 3,723 Worthington Renaissance Fort Worth Hotel $ 24,560 $ 4,173 $ 2,236 $ 1,427 $ — $ 7,836 Total $ 534,800 $ 89,505 $ 55,312 $ 8,448 $ 3,087 $ 156,345 Add: Prior Ownership Results (2) $ 7,293 $ 876 $ 450 $ — $ — $ 1,326 Comparable Total $ 542,093 $ 90,381 $ 55,762 $ 8,448 $ 3,087 $ 157,671 (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 Chico Hot Springs Resort & Day Spa acquired in 2023. View original content: https://www.prnewswire.com/news-releases/diamondrock-hospitality-company-reports-second-quarter-2024-results-302212778.html SOURCE DiamondRock Hospitality Company

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