DIAMONDROCK HOSPITALITY COMPANY REPORTS SECOND QUARTER RESULTS

About this update from Diamondrock Hospitality Company

BETHESDA, Md. , Aug. 3, 2023 /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, 2023 . Second Quarter 2023 Highlights Net Income: Net income was $39.1 million and earnings per diluted share was $0.17 . Comparable Revenues: Comparable total revenues were $289.3 million , a 0.9% increase over 2022 and a 9.3% increase over 2019. Comparable RevPAR: Comparable RevPAR was $226.41 , a 0.5% increase over 2022 and a 8.0% increase over 2019. Comparable Hotel Adjusted EBITDA : Comparable Hotel Adjusted EBITDA was $93.6 million , a 9.7% decrease over 2022 and a 3.5% increase over 2019. Comparable Hotel Adjusted EBITDA Margin : Comparable Hotel Adjusted EBITDA margin was 32.36%, a 381 basis point decrease over 2022 and a 178 basis point decrease over 2019. Adjusted EBITDA: Adjusted EBITDA was $85.8 million , a 6.7% decrease over 2022 and a 5.8% increase over 2019. Adjusted FFO: Adjusted FFO was $67.3 million and Adjusted FFO per diluted share was $0.32 . Share Repurchases: The Company repurchased 262,054 shares of its common stock at an average price of $7.67 per share for a total purchase price of $2.0 million during the second quarter. Recent Developments Hotel Acquisition : The Company acquired Chico Hot Springs Resort located in Paradise Valley, Montana for $33.0 million on August 1, 2023 . Hotel Rebranding : The Company completed the rebranding of the Hilton Boston Downtown/Faneuil Hall to The Dagny, an independent lifestyle boutique hotel, on August 1, 2023 . "The DiamondRock portfolio delivered a new record for comparable revenues in the quarter even as it made major investments into its portfolio to secure future performance. Our urban portfolio delivered strong total revenue growth of 7.1% with solid performance from group, but the rate of improvement in business transient demand appears to be moderating. Competition from international destinations and cruise lines led our smaller portfolio of resorts to rebalance to a 'new normal' with total revenues declining 8.3%. However, revenues from our resorts remained 33.1% ahead of the comparable period in 2019 as destination resorts remain the biggest winner from an acceleration in the secular demand for leisure travel. After quarter end, we completed the major repositioning of The Dagny in Boston as well as acquiring a very attractive boutique resort in Montana ," said Mark W. Brugger , President and Chief Executive Officer of DiamondRock Hospitality Company . Operating Results Please see "Non-GAAP Financial Measures" attached to this press release for an explanation of the terms "EBITDAre," "Adjusted EBITDA," " Hotel Adjusted EBITDA ," " Hotel Adjusted EBITDA Margin ," "FFO" and "Adjusted FFO" and a reconciliation of these measures to net income. Comparable operating results include all hotels currently owned for all periods presented, except the Kimpton Fort Lauderdale Beach Resort , which opened in April 2021 . See "Reconciliation of Comparable Operating Results" attached to this press release for a reconciliation to historical amounts. Quarter Ended June 30 , Change From 2023 2022 2019 2022 2019 ($ amounts in millions, except hotel statistics and per share amounts) Comparable Operating Results (1) ADR $ 294.66 $ 300.68 $ 254.63 (2.0) % 15.7 % Occupancy 76.8 % 74.9 % 82.3 % 1.9 % (5.5) % RevPAR $ 226.41 $ 225.19 $ 209.59 0.5 % 8.0 % Total RevPAR $ 333.88 $ 331.56 $ 306.75 0.7 % 8.8 % Revenues $ 289.3 $ 286.6 $ 264.7 0.9 % 9.3 % Hotel Adjusted EBITDA $ 93.6 $ 103.7 $ 90.4 (9.7) % 3.5 % Hotel Adjusted EBITDA Margin 32.36 % 36.17 % 34.14 % (381 bps) (178 bps) Available Rooms 866,411 864,323 863,014 2,088 3,397 Actual Operating Results (2) Revenues $ 291.2 $ 281.4 $ 257.9 3.5 % 12.9 % Net income $ 39.1 $ 52.7 $ 29.1 (25.8) % 34.4 % Earnings per diluted share $ 0.17 $ 0.23 $ 0.14 (26.1) % 21.4 % Adjusted EBITDA $ 85.8 $ 92.0 $ 81.1 (6.7) % 5.8 % Adjusted FFO $ 67.3 $ 76.5 $ 65.1 (12.0) % 3.4 % Adjusted FFO per diluted share $ 0.32 $ 0.36 $ 0.32 (11.1) % — % Six Months Ended June 30 , Change From 2023 2022 2019 2022 2019 ($ amounts in millions, except hotel statistics and per share amounts) Comparable Operating Results (1) ADR $ 286.94 $ 293.47 $ 241.22 (2.2) % 19.0 % Occupancy 71.8 % 65.4 % 77.3 % 6.4 % (5.5) % RevPAR $ 205.94 $ 192.05 $ 186.36 7.2 % 10.5 % Total RevPAR $ 307.45 $ 285.23 $ 276.90 7.8 % 11.0 % Revenues $ 529.7 $ 490.3 $ 475.2 8.0 % 11.5 % Hotel Adjusted EBITDA $ 155.5 $ 157.1 $ 142.2 (1.0) % 9.4 % Hotel Adjusted EBITDA Margin 29.37 % 32.04 % 29.91 % (267 bps) (54 bps) Available Rooms 1,722,727 1,718,765 1,716,288 3,962 6,439 Actual Operating Results (2) Revenues $ 534.8 $ 478.2 $ 460.3 11.8 % 16.2 % Net income $ 48.3 $ 62.8 $ 38.1 (23.1) % 26.8 % Earnings per diluted share $ 0.20 $ 0.27 $ 0.19 (25.9) % 5.3 % Adjusted EBITDA $ 141.1 $ 136.9 $ 130.2 3.1 % 8.4 % Adjusted FFO $ 105.3 $ 107.3 $ 107.1 (1.9) % (1.7) % Adjusted FFO per diluted share $ 0.49 $ 0.50 $ 0.53 (2.0) % (7.5) % (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 and Lake Austin Spa Resort from January 1, 2019 to November 20, 2022 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. Ground Lease Buyout On April 20, 2023 , the Company acquired the fee simple interest in a land parcel underlying the parking structure at the Renaissance Worthington Hotel that had been subject to a ground lease. The purchase price of $1.8 million represents a 5.2% capitalization rate on the annual rent. Capital Expenditures The Company invested approximately $47.9 million in capital improvements at its hotels during the six months ended June 30, 2023 . The Company continues to expect to spend $100 million to $115 million on capital improvements at its hotels in 2023. Significant projects in 2023 include the following: Hilton Boston Downtown/Faneuil Hall : The Company completed a comprehensive renovation to rebrand the hotel as The Dagny, an independent lifestyle hotel. Salt Lake City Marriott : The Company is in the process of completing a renovation of the guestrooms, which is expected to be completed in the third quarter of 2023. Hilton Burlington Lake Champlain : The Company commenced a repositioning of the hotel to rebrand it as a Curio Collection hotel. The repositioning is expected to be completed in the first quarter of 2024 and includes a new restaurant concept by a well-known, award-winning chef. Share Repurchase Program During the quarter ended June 30, 2023 , the Company repurchased 262,054 shares of its common stock at an average price of $7.67 per share for a total purchase price of $2.0 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. Balance Sheet and Liquidity The Company ended the quarter with $604.8 million of liquidity, comprised of $98.6 million of unrestricted corporate cash, $106.2 million of unrestricted cash at its hotels and full capacity on its $400 million senior unsecured credit facility. As of June 30, 2023 , the Company had $1.2 billion of total debt outstanding, which consisted of $800.0 million of unsecured term loans and $383.0 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 July 12, 2023 to shareholders of record as of June 30, 2023 . The Company paid a quarterly dividend of $0.515625 per share on its 8.250% Series A Cumulative Redeemable Preferred Stock on June 30, 2023 to shareholders of record as of June 20, 2023 . Earnings Call The Company will host a conference call to discuss its second quarter results on Thursday, August 3, 2023 , at 5:00 p.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) June 30, 2023 December 31, 2022 ASSETS (unaudited) Property and equipment, net $ 2,740,395 $ 2,748,476 Right-of-use assets 97,834 99,047 Restricted cash 37,535 39,614 Due from hotel managers 164,193 176,708 Prepaid and other assets 86,224 76,131 Cash and cash equivalents 98,556 67,564 Total assets $ 3,224,737 $ 3,207,540 LIABILITIES AND EQUITY Liabilities: Mortgage and other debt, net of unamortized debt issuance costs $ 382,157 $ 386,655 Unsecured term loans, net of unamortized debt issuance costs 799,271 799,138 Senior unsecured credit facility — — Total debt 1,181,428 1,185,793 Lease liabilities 111,233 110,875 Due to hotel managers 119,706 123,682 Deferred rent 67,260 65,097 Unfavorable contract liabilities, net 60,240 61,069 Accounts payable and accrued expenses 39,811 43,120 Distributions declared and unpaid 6,437 12,946 Deferred income related to key money, net 8,565 8,780 Total liabilities 1,594,680 1,611,362 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, 2023 and December 31, 2022 48 48 Common stock, $0.01 par value; 400,000,000 shares authorized; 209,589,638 and 209,374,830 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively 2,095 2,094 Additional paid-in capital 2,287,348 2,288,433 Accumulated other comprehensive income 3,830 — Distributions in excess of earnings (670,063) (700,694) Total stockholders' equity 1,623,258 1,589,881 Noncontrolling interests 6,799 6,297 Total equity 1,630,057 1,596,178 Total liabilities and equity $ 3,224,737 $ 3,207,540 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 , 2023 2022 2023 2022 Revenues: Rooms $ 197,318 $ 193,025 $ 357,991 $ 325,195 Food and beverage 68,369 68,606 128,146 114,354 Other 25,560 19,776 48,663 38,691 Total revenues 291,247 281,407 534,800 478,240 Operating Expenses: Rooms 45,116 42,645 85,319 76,475 Food and beverage 45,908 43,471 89,058 76,692 Other departmental and support expenses 65,445 59,521 127,413 108,058 Management fees 6,885 6,312 11,873 10,332 Franchise fees 9,403 8,693 17,480 14,503 Other property-level expenses 26,934 20,977 51,051 42,949 Depreciation and amortization 27,840 27,389 55,312 54,044 Impairment losses 941 — 941 2,843 Corporate expenses 8,284 8,726 16,151 14,759 Business interruption insurance income (110) — (110) (499) Total operating expenses, net 236,646 217,734 454,488 400,156 Interest expense 15,567 9,675 32,739 13,794 Interest (income) and other (income) expense, net (522) 606 (945) 892 Total other expenses, net 15,045 10,281 31,794 14,686 Income before income taxes 39,556 53,392 48,518 63,398 Income tax expense (422) (691) (196) (637) Net income 39,134 52,701 48,322 62,761 Less: Net income attributable to noncontrolling interests (169) (184) (201) (216) Net income attributable to the Company 38,965 52,517 48,121 62,545 Distributions to preferred stockholders (2,454) (2,454) (4,908) (4,908) Net income attributable to commonstockholders $ 36,511 $ 50,063 $ 43,213 $ 57,637 Earnings per share: Earnings per share available to commonstockholders - basic $ 0.17 $ 0.24 $ 0.20 $ 0.27 Earnings per share available to commonstockholders - diluted $ 0.17 $ 0.23 $ 0.20 $ 0.27 Weighted-average number of common shares outstanding: Basic 211,673,828 212,834,222 211,543,398 212,663,838 Diluted 212,161,950 213,520,706 212,092,590 213,279,174 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 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 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 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 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, EBITDAre and FFO 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. The Company computes FFO in accordance with standards established by the Nareit, which defines FFO as net income determined 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. Hotel EBITDA Hotel EBITDA represents net income excluding: (1) interest expense, (2) income taxes, (3) depreciation and amortization, (4) corporate general and administrative expenses (shown as corporate expenses on the consolidated statements of operations), and (5) hotel acquisition costs. We believe that Hotel 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 (corporate expenses and hotel acquisition costs). With respect to Hotel 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. Adjustments to EBITDAre, FFO and Hotel EBITDA We adjust EBITDAre, FFO and Hotel EBITDA 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, Adjusted FFO and Hotel Adjusted EBITDA when combined with U.S. GAAP net income, EBITDAre, FFO and Hotel EBITDA , is beneficial to an investor's complete understanding of our consolidated and property-level operating performance. Hotel Adjusted EBITDA margins are calculated as Hotel Adjusted EBITDA divided by total hotel revenues. We adjust EBITDAre, FFO and Hotel EBITDA 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 and service providers 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 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 fair value adjustments to interest rate swaps. We exclude these non-cash amounts because they do not reflect the underlying performance of the Company. Reconciliations of Non-GAAP Measures EBITDA, EBITDAre and Adjusted EBITDA The following tables are reconciliations of our GAAP net income to EBITDA, EBITDAre and Adjusted EBITDA (in thousands): Three Months Ended June 30 , 2023 2022 2019 Net income $ 39,134 $ 52,701 $ 29,074 Interest expense 15,567 9,675 12,418 Income tax expense 422 691 4,571 Real estate related depreciation and amortization 27,840 27,389 29,335 EBITDA 82,963 90,456 75,398 Impairment losses 941 — — EBITDAre 83,904 90,456 75,398 Non-cash lease expense and other amortization 1,537 1,556 1,784 Professional fees and pre-opening costs related to Frenchman's Reef (1) — — 3,700 Hotel pre-opening costs 326 — — Hotel manager transition items — (13) 171 Adjusted EBITDA $ 85,767 $ 91,999 $ 81,053 Six Months Ended June 30 , 2023 2022 2019 Net income $ 48,322 $ 62,761 $ 38,054 Interest expense 32,739 13,794 24,080 Income tax expense 196 637 722 Real estate related depreciation and amortization 55,312 54,044 58,331 EBITDA 136,569 131,236 121,187 Impairment losses 941 2,843 — EBITDAre 137,510 134,079 121,187 Non-cash lease expense and other amortization 3,087 3,124 3,499 Professional fees and pre-opening costs related to Frenchman's Reef (1) — — 5,067 Hotel pre-opening costs 542 — — Severance costs (2) — (532) — Hotel manager transition items — 236 468 Adjusted EBITDA $ 141,139 $ 136,907 $ 130,221 (1) 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 are not covered by insurance. (2) 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. Hotel EBITDA and Hotel Adjusted EBITDA The following table is a reconciliation of our GAAP net income to Hotel EBITDA and Hotel Adjusted EBITDA (in thousands): Three Months Ended June 30 , 2023 2022 2019 Net income $ 39,134 $ 52,701 $ 29,074 Interest expense 15,567 9,675 12,418 Income tax expense 422 691 4,571 Real estate related depreciation and amortization 27,840 27,389 29,335 EBITDA 82,963 90,456 75,398 Corporate expenses 8,284 8,726 7,403 Interest (income) and other (income) expense, net (522) 606 (105) Impairment losses 941 — — Professional fees and pre-opening costs related to Frenchman's Reef (1) — — 3,700 Hotel EBITDA 91,666 99,788 86,396 Non-cash lease expense and other amortization 1,537 1,556 1,784 Hotel pre-opening costs 326 — — Hotel manager transition items — (13) 171 Hotel Adjusted EBITDA $ 93,529 $ 101,331 $ 88,351 Six Months Ended June 30 , 2023 2022 2019 Net income $ 48,322 $ 62,761 $ 38,054 Interest expense 32,739 13,794 24,080 Income tax expense 196 637 722 Real estate related depreciation and amortization 55,312 54,044 58,331 EBITDA 136,569 131,236 121,187 Corporate expenses 16,151 14,759 14,467 Interest (income) and other (income) expense, net (945) 892 (408) Impairment losses 941 2,843 — Professional fees and pre-opening costs related to Frenchman's Reef (1) — — 5,067 Hotel EBITDA 152,716 149,730 140,313 Non-cash lease expense and other amortization 3,087 3,124 3,499 Hotel pre-opening costs 542 — — Hotel manager transition items — 236 468 Severance costs (2) — (532) — Hotel Adjusted EBITDA $ 156,345 $ 152,558 $ 144,280 (1) 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 are not covered by insurance. (2) Consists of severance costs incurred, or adjustments thereto, associated with the elimination of positions at our hotels, which are classified within other hotel expenses on the consolidated statement of operations. 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 , 2023 2022 2019 Net income $ 39,134 $ 52,701 $ 29,074 Real estate related depreciation and amortization 27,840 27,389 29,335 Impairment losses 941 — — FFO 67,915 80,090 58,409 Distribution to preferred stockholders (2,454) (2,454) — FFO available to common stock and unit holders 65,461 77,636 58,409 Non-cash lease expense and other amortization 1,537 1,556 1,784 Professional fees and pre-opening costs related to Frenchman's Reef (1) — — 3,700 Hotel pre-opening costs 326 — — Hotel manager transition items — (13) 171 Fair value adjustments to interest rate swaps 19 (2,720) 1,075 Adjusted FFO available to common stock and unit holders $ 67,343 $ 76,459 $ 65,139 Adjusted FFO available to common stock and unit holders, per diluted share $ 0.32 $ 0.36 $ 0.32 Six Months Ended June 30 , 2023 2022 2019 Net income $ 48,322 $ 62,761 $ 38,054 Real estate related depreciation and amortization 55,312 54,044 58,331 Impairment losses 941 2,843 — FFO 104,575 119,648 96,385 Distribution to preferred stockholders (4,908) (4,908) — FFO available to common stock and unit holders 99,667 114,740 96,385 Non-cash lease expense and other amortization 3,087 3,124 3,499 Professional fees and pre-opening costs related to Frenchman's Reef (1) — — 5,067 Hotel pre-opening costs 542 — — Hotel manager transition items — 236 468 Severance costs (2) — (532) — Fair value adjustments to interest rate swaps 2,033 (10,222) 1,647 Adjusted FFO available to common stock and unit holders $ 105,329 $ 107,346 $ 107,066 Adjusted FFO available to common stock and unit holders, perdiluted share $ 0.49 $ 0.50 $ 0.53 (1) 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 are not covered by insurance. (2) Consists of severance costs incurred, or adjustments thereto, associated with the elimination of positions at our hotels, which are classified within other hotel expenses on the consolidated statement of operations. 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 June 30 , 2023 2022 2019 Revenues $ 291,247 $ 281,407 $ 257,918 Hotel revenues from prior ownership (1) (1,971) 5,171 25,088 Hotel revenues from sold hotels (2) — — (18,275) Comparable Revenues $ 289,276 $ 286,578 $ 264,731 Hotel Adjusted EBITDA $ 93,529 $ 101,331 $ 88,351 Hotel Adjusted EBITDA from prior ownership (1) 91 2,323 6,936 Hotel Adjusted EBITDA from sold hotels (2) — — (4,895) Comparable Hotel Adjusted EBITDA $ 93,620 $ 103,654 $ 90,392 Hotel Adjusted EBITDA Margin 32.11 % 36.01 % 34.26 % Comparable Hotel Adjusted EBITDA Margin 32.36 % 36.17 % 34.14 % Six Months Ended June 30 , 2023 2022 2019 Revenues $ 534,800 $ 478,240 $ 460,293 Hotel revenues from prior ownership (1) (5,146) 12,010 44,475 Hotel revenues from sold hotels (2) — — (29,534) Comparable Revenues $ 529,654 $ 490,250 $ 475,234 Hotel Adjusted EBITDA $ 156,345 $ 152,558 $ 144,280 Hotel Adjusted EBITDA from prior ownership (1) (796) 4,495 10,694 Hotel Adjusted EBITDA from sold hotels (2) — — (12,815) Comparable Hotel Adjusted EBITDA $ 155,549 $ 157,053 $ 142,159 Hotel Adjusted EBITDA Margin 29.23 % 31.90 % 31.35 % Comparable Hotel Adjusted EBITDA Margin 29.37 % 32.04 % 29.91 % (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 and Lake Austin Spa Resort from January 1, 2019 to November 20, 2022 . 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 $ 225.75 $ 254.63 $ 241.37 $ 244.35 $ 242.03 Occupancy 72.1 % 82.3 % 81.2 % 75.1 % 77.7 % RevPAR $ 162.86 $ 209.59 $ 195.88 $ 183.60 $ 188.07 Total RevPAR $ 246.70 $ 306.75 $ 278.99 $ 268.73 $ 275.36 Revenues (in thousands) $ 210,503 $ 264,731 $ 243,528 $ 234,573 $ 953,335 Hotel Adjusted EBITDA (in thousands) $ 51,767 $ 90,392 $ 73,486 $ 65,779 $ 281,424 Hotel Adjusted EBITDA Margin 24.59 % 34.14 % 30.18 % 28.04 % 29.52 % Available Rooms 853,274 863,014 872,896 872,896 3,462,080 Quarter 1, 2022 Quarter 2, 2022 Quarter 3, 2022 Quarter 4, 2022 Full Year 2022 ADR $ 283.70 $ 300.68 $ 283.87 $ 291.05 $ 290.21 Occupancy 55.9 % 74.9 % 75.1 % 67.3 % 68.4 % RevPAR $ 158.52 $ 225.19 $ 213.19 $ 195.99 $ 198.37 Total RevPAR $ 238.37 $ 331.56 $ 311.71 $ 293.64 $ 294.03 Revenues (in thousands) $ 203,672 $ 286,578 $ 272,659 $ 256,938 $ 1,019,847 Hotel Adjusted EBITDA (in thousands) $ 53,399 $ 103,654 $ 85,804 $ 76,981 $ 319,838 Hotel Adjusted EBITDA Margin 26.22 % 36.17 % 31.47 % 29.96 % 31.36 % Available Rooms 854,442 864,323 874,702 875,012 3,468,479 Quarter 1, 2023 Quarter 2, 2023 ADR $ 277.92 $ 294.66 Occupancy 66.7 % 76.8 % RevPAR $ 185.26 $ 226.41 Total RevPAR $ 280.77 $ 333.88 Revenues (in thousands) $ 240,378 $ 289,276 Hotel Adjusted EBITDA (in thousands) $ 61,929 $ 93,620 Hotel Adjusted EBITDA Margin 25.76 % 32.36 % Available Rooms 856,316 866,411 Market Capitalization as of June 30, 2023 (in thousands) Enterprise Value Common equity capitalization (at June 30, 2023 closing price of $8.01 /share) $ 1,712,105 Preferred equity capitalization (at liquidation value of $25.00 /share) 119,000 Consolidated debt (face amount) 1,182,990 Cash and cash equivalents (98,556) Total enterprise value $ 2,915,539 Share Reconciliation Common shares outstanding 209,590 Operating partnership units 1,075 Unvested restricted stock held by management and employees 1,210 Share grants under deferred compensation plan 1,871 Combined shares and units 213,746 Debt Summary as of June 30, 2023 (dollars in thousands) Loan Interest Rate Term Outstanding Principal Maturity Courtyard New York Manhattan / Midtown East 4.40 % Fixed 75,255 August 2024 Worthington Renaissance Fort Worth Hotel 3.66 % Fixed 74,681 May 2025 Hotel Clio 4.33 % Fixed 56,784 July 2025 Westin Boston Seaport District 4.36 % Fixed 176,270 November 2025 Unamortized debt issuance costs (833) Total mortgage debt, net of unamortized debtissuance costs 382,157 Unsecured term loan SOFR + 1.35% Variable 500,000 January 2028 Unsecured term loan SOFR + 1.35% Variable 300,000 January 2025 (1) Unamortized debt issuance costs (729) Unsecured term loans, net of unamortized debtissuance costs 799,271 Senior unsecured credit facility SOFR + 1.40% Variable — September 2026 (1) Total debt, net of unamortized debt issuance costs $ 1,181,428 Weighted-average interest rate of fixed rate debt 3.87 % Total weighted-average interest rate (2) 4.88 % (1) May be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions. (2) Weighted-average interest rate includes effect of interest rate swaps. Operating Statistics – Second Quarter Numberof Rooms ADR Occupancy RevPAR 2Q 2023 2Q 2022 B/(W) 2022 2Q 2023 2Q 2022 B/(W) 2022 2Q 2023 2Q 2022 B/(W) 2022 Atlanta Marriott Alpharetta 318 $ 150.26 $ 152.51 (1.5) % 73.5 % 62.0 % 11.5 % $ 110.41 $ 94.58 16.7 % Bourbon Orleans Hotel 220 $ 242.09 $ 254.65 (4.9) % 83.7 % 65.8 % 17.9 % $ 202.69 $ 167.61 20.9 % Cavallo Point , The Lodge at the Golden Gate 142 $ 613.11 $ 729.78 (16.0) % 56.8 % 59.5 % (2.7) % $ 348.54 $ 434.41 (19.8) % Chicago Marriott Downtown Magnificent Mile 1,200 $ 273.80 $ 258.98 5.7 % 70.8 % 60.9 % 9.9 % $ 193.76 $ 157.74 22.8 % Courtyard Denver Downtown 177 $ 233.95 $ 223.78 4.5 % 83.3 % 82.2 % 1.1 % $ 194.88 $ 183.96 5.9 % Courtyard New York Manhattan/Fifth Avenue 189 $ 306.37 $ 291.51 5.1 % 94.7 % 96.1 % (1.4) % $ 290.00 $ 280.01 3.6 % Courtyard New York Manhattan/ Midtown East 321 $ 348.02 $ 330.68 5.2 % 92.4 % 89.2 % 3.2 % $ 321.54 $ 294.94 9.0 % Embassy Suites by Hilton Bethesda 272 $ 183.55 $ 160.43 14.4 % 80.0 % 62.9 % 17.1 % $ 146.80 $ 100.86 45.5 % Havana Cabana Key West 106 $ 293.87 $ 330.95 (11.2) % 86.7 % 90.2 % (3.5) % $ 254.75 $ 298.59 (14.7) % Henderson Beach Resort 243 $ 500.73 $ 528.34 (5.2) % 74.1 % 87.2 % (13.1) % $ 370.82 $ 460.58 (19.5) % Henderson Park Inn 37 $ 680.86 $ 732.17 (7.0) % 87.2 % 90.9 % (3.7) % $ 593.91 $ 665.62 (10.8) % Hilton Boston Downtown/Faneuil Hall 403 $ 327.33 $ 330.88 (1.1) % 89.1 % 85.4 % 3.7 % $ 291.81 $ 282.69 3.2 % Hilton Burlington Lake Champlain 258 $ 242.28 $ 233.43 3.8 % 79.0 % 76.7 % 2.3 % $ 191.35 $ 178.98 6.9 % Hilton Garden Inn New York/Times Square Central 282 $ 283.37 $ 284.89 (0.5) % 85.6 % 98.0 % (12.4) % $ 242.70 $ 279.23 (13.1) % Hotel Clio 199 $ 326.27 $ 318.95 2.3 % 74.2 % 69.8 % 4.4 % $ 241.96 $ 222.73 8.6 % Hotel Emblem San Francisco 96 $ 221.08 $ 236.51 (6.5) % 66.8 % 85.7 % (18.9) % $ 147.71 $ 202.78 (27.2) % Hotel Palomar Phoenix 242 $ 204.26 $ 218.59 (6.6) % 78.2 % 65.3 % 12.9 % $ 159.72 $ 142.83 11.8 % Kimpton Fort Lauderdale Beach Resort 96 $ 202.15 $ 236.33 (14.5) % 65.4 % 65.3 % 0.1 % $ 132.13 $ 154.33 (14.4) % Kimpton Shorebreak Resort 157 $ 337.46 $ 356.28 (5.3) % 83.3 % 85.2 % (1.9) % $ 280.94 $ 303.51 (7.4) % L'Auberge de Sedona 88 $ 979.53 $ 1,068.06 (8.3) % 67.9 % 80.5 % (12.6) % $ 664.92 $ 859.86 (22.7) % Lake Austin Spa Resort 40 $ 1,101.21 $ 1,078.62 2.1 % 66.9 % 75.5 % (8.6) % $ 736.66 $ 814.30 (9.5) % Margaritaville Beach House Key West 186 $ 396.70 $ 450.34 (11.9) % 90.0 % 87.0 % 3.0 % $ 356.95 $ 391.96 (8.9) % Orchards Inn Sedona 70 $ 303.14 $ 354.54 (14.5) % 69.9 % 70.0 % (0.1) % $ 211.91 $ 248.13 (14.6) % Salt Lake City Marriott Downtown at City Creek 510 $ 190.99 $ 181.35 5.3 % 61.1 % 63.4 % (2.3) % $ 116.64 $ 114.99 1.4 % The Gwen Hotel 311 $ 339.69 $ 324.50 4.7 % 78.4 % 80.1 % (1.7) % $ 266.27 $ 259.81 2.5 % The Hythe Vail 344 $ 261.14 $ 240.14 8.7 % 34.3 % 38.4 % (4.1) % $ 89.56 $ 92.28 (2.9) % The Landing Lake Tahoe Resort & Spa 82 $ 390.10 $ 451.54 (13.6) % 50.6 % 48.7 % 1.9 % $ 197.24 $ 219.78 (10.3) % The Lindy Renaissance Charleston Hotel 167 $ 393.54 $ 412.06 (4.5) % 94.1 % 94.1 % — % $ 370.39 $ 387.87 (4.5) % The Lodge at Sonoma Resort 182 $ 497.28 $ 490.14 1.5 % 65.2 % 71.3 % (6.1) % $ 324.37 $ 349.50 (7.2) % Tranquility Bay Beachfront Resort 103 $ 663.23 $ 784.22 (15.4) % 79.9 % 81.7 % (1.8) % $ 529.64 $ 640.73 (17.3) % Westin Boston Waterfront 793 $ 267.62 $ 255.07 4.9 % 91.4 % 85.9 % 5.5 % $ 244.72 $ 219.10 11.7 % Westin Fort Lauderdale Beach Resort 433 $ 258.71 $ 262.17 (1.3) % 73.7 % 82.3 % (8.6) % $ 190.66 $ 215.70 (11.6) % Westin San Diego Bayview 436 $ 205.93 $ 208.76 (1.4) % 80.0 % 81.5 % (1.5) % $ 164.71 $ 170.19 (3.2) % Westin Washington D.C. City Center 410 $ 250.82 $ 237.11 5.8 % 78.0 % 79.6 % (1.6) % $ 195.73 $ 188.68 3.7 % Worthington Renaissance Fort Worth Hotel 504 $ 198.93 $ 188.25 5.7 % 79.1 % 73.9 % 5.2 % $ 157.31 $ 139.06 13.1 % Comparable Total (1) 9,521 $ 294.66 $ 300.68 (2.0) % 76.8 % 74.9 % 1.9 % $ 226.41 $ 225.19 0.5 % (1) Amounts include the pre-acquisition operating results of hotels acquired in 2022 and exclude the Kimpton Fort Lauderdale Beach Resort as the hotel opened during 2021. Operating Statistics – Second Quarter Number of Rooms ADR Occupancy RevPAR 2Q 2023 2Q 2019 B/(W) 2019 2Q 2023 2Q 2019 B/(W) 2019 2Q 2023 2Q 2019 B/(W) 2019 Atlanta Marriott Alpharetta 318 $ 150.26 $ 160.44 (6.3) % 73.5 % 74.8 % (1.3) % $ 110.41 $ 119.97 (8.0) % Bourbon Orleans Hotel 220 $ 242.09 $ 218.43 10.8 % 83.7 % 90.8 % (7.1) % $ 202.69 $ 198.25 2.2 % Cavallo Point , The Lodge at the Golden Gate 142 $ 613.11 $ 467.43 31.2 % 56.8 % 64.0 % (7.2) % $ 348.54 $ 299.11 16.5 % Chicago Marriott Downtown Magnificent Mile 1,200 $ 273.80 $ 253.76 7.9 % 70.8 % 83.6 % (12.8) % $ 193.76 $ 212.22 (8.7) % Courtyard Denver Downtown 177 $ 233.95 $ 207.53 12.7 % 83.3 % 83.8 % (0.5) % $ 194.88 $ 173.87 12.1 % Courtyard New York Manhattan/Fifth Avenue 189 $ 306.37 $ 270.86 13.1 % 94.7 % 90.9 % 3.8 % $ 290.00 $ 246.20 17.8 % Courtyard New York Manhattan/ Midtown East 321 $ 348.02 $ 274.26 26.9 % 92.4 % 97.3 % (4.9) % $ 321.54 $ 266.76 20.5 % Embassy Suites by Hilton Bethesda 272 $ 183.55 $ 188.39 (2.6) % 80.0 % 83.3 % (3.3) % $ 146.80 $ 156.97 (6.5) % Havana Cabana Key West 106 $ 293.87 $ 202.86 44.9 % 86.7 % 90.4 % (3.7) % $ 254.75 $ 183.30 39.0 % Henderson Beach Resort 243 $ 500.73 $ 332.50 50.6 % 74.1 % 75.1 % (1.0) % $ 370.82 $ 249.74 48.5 % Henderson Park Inn 37 $ 680.86 $ 515.16 32.2 % 87.2 % 90.8 % (3.6) % $ 593.91 $ 467.58 27.0 % Hilton Boston Downtown/Faneuil Hall 403 $ 327.33 $ 375.21 (12.8) % 89.1 % 90.5 % (1.4) % $ 291.81 $ 339.67 (14.1) % Hilton Burlington Lake Champlain 258 $ 242.28 $ 191.05 26.8 % 79.0 % 84.0 % (5.0) % $ 191.35 $ 160.56 19.2 % Hilton Garden Inn New York/Times Square Central 282 $ 283.37 $ 275.97 2.7 % 85.6 % 98.7 % (13.1) % $ 242.70 $ 272.38 (10.9) % Hotel Clio 199 $ 326.27 $ 265.01 23.1 % 74.2 % 79.2 % (5.0) % $ 241.96 $ 209.77 15.3 % Hotel Emblem San Francisco 96 $ 221.08 $ 227.87 (3.0) % 66.8 % 87.1 % (20.3) % $ 147.71 $ 198.47 (25.6) % Hotel Palomar Phoenix 242 $ 204.26 $ 174.16 17.3 % 78.2 % 86.5 % (8.3) % $ 159.72 $ 150.69 6.0 % Kimpton Shorebreak Resort 157 $ 337.46 $ 258.74 30.4 % 83.3 % 78.9 % 4.4 % $ 280.94 $ 204.07 37.7 % L'Auberge de Sedona 88 $ 979.53 $ 669.18 46.4 % 67.9 % 83.8 % (15.9) % $ 664.92 $ 560.63 18.6 % Lake Austin Spa Resort 40 $ 1,101.21 $ 896.53 22.8 % 66.9 % 59.0 % 7.9 % $ 736.66 $ 528.56 39.4 % Margaritaville Beach House Key West 186 $ 396.70 $ 244.49 62.3 % 90.0 % 86.4 % 3.6 % $ 356.95 $ 211.26 69.0 % Orchards Inn Sedona 70 $ 303.14 $ 267.91 13.1 % 69.9 % 85.0 % (15.1) % $ 211.91 $ 227.70 (6.9) % Salt Lake City Marriott Downtown at City Creek 510 $ 190.99 $ 167.09 14.3 % 61.1 % 72.8 % (11.7) % $ 116.64 $ 121.65 (4.1) % The Gwen Hotel 311 $ 339.69 $ 285.70 18.9 % 78.4 % 87.9 % (9.5) % $ 266.27 $ 251.18 6.0 % The Hythe Vail 344 $ 261.14 $ 174.07 50.0 % 34.3 % 44.3 % (10.0) % $ 89.56 $ 77.08 16.2 % The Landing Lake Tahoe Resort & Spa 82 $ 390.10 $ 270.62 44.2 % 50.6 % 55.1 % (4.5) % $ 197.24 $ 149.15 32.2 % The Lindy Renaissance Charleston Hotel 167 $ 393.54 $ 301.89 30.4 % 94.1 % 90.3 % 3.8 % $ 370.39 $ 272.57 35.9 % The Lodge at Sonoma Resort 182 $ 497.28 $ 327.39 51.9 % 65.2 % 77.4 % (12.2) % $ 324.37 $ 253.52 27.9 % Tranquility Bay Beachfront Resort 103 $ 663.23 $ 420.16 57.9 % 79.9 % 90.2 % (10.3) % $ 529.64 $ 379.06 39.7 % Westin Boston Waterfront 793 $ 267.62 $ 278.41 (3.9) % 91.4 % 85.0 % 6.4 % $ 244.72 $ 236.51 3.5 % Westin Fort Lauderdale Beach Resort 433 $ 258.71 $ 198.53 30.3 % 73.7 % 80.7 % (7.0) % $ 190.66 $ 160.28 19.0 % Westin San Diego Bayview 436 $ 205.93 $ 199.95 3.0 % 80.0 % 82.5 % (2.5) % $ 164.71 $ 164.92 (0.1) % Westin Washington D.C. City Center 410 $ 250.82 $ 239.48 4.7 % 78.0 % 92.4 % (14.4) % $ 195.73 $ 221.35 (11.6) % Worthington Renaissance Fort Worth Hotel 504 $ 198.93 $ 192.06 3.6 % 79.1 % 77.5 % 1.6 % $ 157.31 $ 148.88 5.7 % Comparable Total (1) 9,521 $ 294.66 $ 254.63 15.7 % 76.8 % 82.3 % (5.5) % $ 226.41 $ 209.59 8.0 % (1) Amounts include the pre-acquisition operating results of hotels acquired in 2021 and 2022 and exclude the Kimpton Fort Lauderdale Beach Resort as the hotel opened during 2021. Operating Statistics – Year to Date Number of 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 $ 154.36 $ 148.27 4.1 % 68.0 % 51.9 % 16.1 % $ 105.04 $ 76.90 36.6 % Bourbon Orleans Hotel 220 $ 250.91 $ 250.51 0.2 % 82.3 % 57.8 % 24.5 % $ 206.55 $ 144.75 42.7 % Cavallo Point , The Lodge at the Golden Gate 142 $ 591.51 $ 709.90 (16.7) % 54.8 % 52.1 % 2.7 % $ 324.01 $ 370.03 (12.4) % Chicago Marriott Downtown Magnificent Mile 1,200 $ 243.61 $ 231.16 5.4 % 55.2 % 44.2 % 11.0 % $ 134.56 $ 102.24 31.6 % Courtyard Denver Downtown 177 $ 209.18 $ 193.32 8.2 % 76.2 % 71.2 % 5.0 % $ 159.47 $ 137.56 15.9 % Courtyard New York Manhattan/Fifth Avenue 189 $ 254.77 $ 231.54 10.0 % 94.1 % 89.5 % 4.6 % $ 239.68 $ 207.26 15.6 % Courtyard New York Manhattan/ Midtown East 321 $ 292.46 $ 276.54 5.8 % 90.2 % 76.5 % 13.7 % $ 263.73 $ 211.45 24.7 % Embassy Suites by Hilton Bethesda 272 $ 165.60 $ 146.62 12.9 % 70.9 % 44.7 % 26.2 % $ 117.35 $ 65.61 78.9 % Havana Cabana Key West 106 $ 336.84 $ 371.86 (9.4) % 87.3 % 92.0 % (4.7) % $ 294.11 $ 342.09 (14.0) % Henderson Park Resort 243 $ 450.86 $ 489.67 (7.9) % 58.7 % 66.0 % (7.3) % $ 264.61 $ 323.42 (18.2) % Henderson Park Inn 37 $ 615.29 $ 644.64 (4.6) % 65.0 % 75.9 % (10.9) % $ 399.75 $ 488.99 (18.2) % Hilton Boston Downtown/Faneuil Hall 403 $ 292.45 $ 264.87 10.4 % 69.2 % 74.3 % (5.1) % $ 202.29 $ 196.80 2.8 % Hilton Burlington Lake Champlain 258 $ 208.51 $ 200.81 3.8 % 71.1 % 67.7 % 3.4 % $ 148.29 $ 135.88 9.1 % Hilton Garden Inn New York/Times Square Central 282 $ 238.67 $ 231.05 3.3 % 85.5 % 88.0 % (2.5) % $ 204.00 $ 203.24 0.4 % Hotel Clio 199 $ 313.65 $ 290.80 7.9 % 68.0 % 66.2 % 1.8 % $ 213.28 $ 192.37 10.9 % Hotel Emblem San Francisco 96 $ 252.09 $ 217.86 15.7 % 65.3 % 69.9 % (4.6) % $ 164.54 $ 152.22 8.1 % Hotel Palomar Phoenix 242 $ 251.11 $ 234.31 7.2 % 75.9 % 71.1 % 4.8 % $ 190.70 $ 166.48 14.5 % Kimpton Fort Lauderdale Beach Resort 96 $ 242.58 $ 262.57 (7.6) % 76.4 % 71.0 % 5.4 % $ 185.27 $ 186.38 (0.6) % Kimpton Shorebreak Resort 157 $ 316.01 $ 329.33 (4.0) % 79.5 % 78.5 % 1.0 % $ 251.10 $ 258.69 (2.9) % L'Auberge de Sedona 88 $ 969.79 $ 1,058.04 (8.3) % 62.7 % 74.5 % (11.8) % $ 608.25 $ 788.48 (22.9) % Lake Austin Spa Resort 40 $ 1,110.65 $ 1,112.70 (0.2) % 61.3 % 73.0 % (11.7) % $ 680.96 $ 812.70 (16.2) % Margaritaville Beach House Key West 186 $ 444.25 $ 516.31 (14.0) % 87.6 % 89.5 % (1.9) % $ 388.99 $ 462.06 (15.8) % Orchards Inn Sedona 70 $ 297.81 $ 333.07 (10.6) % 64.7 % 66.9 % (2.2) % $ 192.81 $ 222.66 (13.4) % Salt Lake City Marriott Downtown at City Creek 510 $ 195.54 $ 179.07 9.2 % 64.1 % 56.2 % 7.9 % $ 125.36 $ 100.68 24.5 % The Gwen Hotel 311 $ 286.85 $ 277.93 3.2 % 71.8 % 69.2 % 2.6 % $ 206.01 $ 192.33 7.1 % The Hythe Vail 344 $ 520.67 $ 508.11 2.5 % 59.1 % 52.7 % 6.4 % $ 307.67 $ 267.53 15.0 % The Landing Lake Tahoe Resort & Spa 82 $ 379.67 $ 430.83 (11.9) % 40.8 % 47.6 % (6.8) % $ 155.02 $ 204.96 (24.4) % The Lindy Renaissance Charleston Hotel 167 $ 365.12 $ 366.12 (0.3) % 89.3 % 87.3 % 2.0 % $ 326.19 $ 319.49 2.1 % The Lodge at Sonoma Resort 182 $ 435.66 $ 440.93 (1.2) % 59.9 % 59.7 % 0.2 % $ 260.85 $ 263.38 (1.0) % Tranquility Bay Beachfront Resort 103 $ 735.05 $ 864.42 (15.0) % 77.0 % 82.4 % (5.4) % $ 565.82 $ 712.19 (20.6) % Westin Boston Waterfront 793 $ 239.76 $ 231.75 3.5 % 81.6 % 69.9 % 11.7 % $ 195.76 $ 162.00 20.8 % Westin Fort Lauderdale Beach Resort 433 $ 307.21 $ 300.54 2.2 % 80.8 % 85.0 % (4.2) % $ 248.15 $ 255.32 (2.8) % Westin San Diego Bayview 436 $ 210.13 $ 195.54 7.5 % 77.0 % 67.4 % 9.6 % $ 161.75 $ 131.71 22.8 % Westin Washington D.C. City Center 410 $ 234.16 $ 218.49 7.2 % 73.0 % 57.5 % 15.5 % $ 171.01 $ 125.70 36.0 % Worthington Renaissance Fort Worth Hotel 504 $ 197.81 $ 191.00 3.6 % 76.6 % 69.1 % 7.5 % $ 151.51 $ 132.02 14.8 % Comparable Total (1) 9,521 $ 286.94 $ 293.47 (2.2) % 71.8 % 65.4 % 6.4 % $ 205.94 $ 192.05 7.2 % (1) Amounts include the pre-acquisition operating results of hotels acquired in 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 $ 154.36 $ 168.59 (8.4) % 68.0 % 72.6 % (4.6) % $ 105.04 $ 122.44 (14.2) % Bourbon Orleans Hotel 220 $ 250.91 $ 227.80 10.1 % 82.3 % 86.6 % (4.3) % $ 206.55 $ 197.32 4.7 % Cavallo Point , The Lodge at the Golden Gate 142 $ 591.51 $ 452.75 30.6 % 54.8 % 63.7 % (8.9) % $ 324.01 $ 288.31 12.4 % Chicago Marriott Downtown Magnificent Mile 1,200 $ 243.61 $ 217.58 12.0 % 55.2 % 67.7 % (12.5) % $ 134.56 $ 147.36 (8.7) % Courtyard Denver Downtown 177 $ 209.18 $ 191.01 9.5 % 76.2 % 78.6 % (2.4) % $ 159.47 $ 150.07 6.3 % Courtyard New York Manhattan/Fifth Avenue 189 $ 254.77 $ 244.03 4.4 % 94.1 % 84.2 % 9.9 % $ 239.68 $ 205.48 16.6 % Courtyard New York Manhattan/ Midtown East 321 $ 292.46 $ 233.54 25.2 % 90.2 % 94.7 % (4.5) % $ 263.73 $ 221.06 19.3 % Embassy Suites by Hilton Bethesda 272 $ 165.60 $ 181.32 (8.7) % 70.9 % 74.4 % (3.5) % $ 117.35 $ 134.84 (13.0) % Havana Cabana Key West 106 $ 336.84 $ 229.10 47.0 % 87.3 % 92.5 % (5.2) % $ 294.11 $ 211.96 38.8 % Henderson Beach Resort 243 $ 450.86 $ 305.54 47.6 % 58.7 % 57.2 % 1.5 % $ 264.61 $ 174.65 51.5 % Henderson Park Inn 37 $ 615.29 $ 455.46 35.1 % 65.0 % 71.6 % (6.6) % $ 399.75 $ 326.31 22.5 % Hilton Boston Downtown/Faneuil Hall 403 $ 292.45 $ 290.58 0.6 % 69.2 % 87.0 % (17.8) % $ 202.29 $ 252.94 (20.0) % Hilton Burlington Lake Champlain 258 $ 208.51 $ 163.67 27.4 % 71.1 % 77.4 % (6.3) % $ 148.29 $ 126.66 17.1 % Hilton Garden Inn New York/Times Square Central 282 $ 238.67 $ 228.97 4.2 % 85.5 % 98.4 % (12.9) % $ 204.00 $ 225.19 (9.4) % Hotel Clio 199 $ 313.65 $ 256.26 22.4 % 68.0 % 63.1 % 4.9 % $ 213.28 $ 161.57 32.0 % Hotel Emblem San Francisco 96 $ 252.09 $ 235.46 7.1 % 65.3 % 72.4 % (7.1) % $ 164.54 $ 170.45 (3.5) % Hotel Palomar Phoenix 242 $ 251.11 $ 203.74 23.3 % 75.9 % 87.4 % (11.5) % $ 190.70 $ 178.02 7.1 % Kimpton Shorebreak Resort 157 $ 316.01 $ 248.09 27.4 % 79.5 % 77.1 % 2.4 % $ 251.10 $ 191.22 31.3 % L'Auberge de Sedona 88 $ 969.79 $ 623.67 55.5 % 62.7 % 82.1 % (19.4) % $ 608.25 $ 512.04 18.8 % Lake Austin Spa Resort 40 $ 1,110.65 $ 842.67 31.8 % 61.3 % 61.0 % 0.3 % $ 680.96 $ 513.63 32.6 % Margaritaville Beach House Key West 186 $ 444.25 $ 278.48 59.5 % 87.6 % 90.2 % (2.6) % $ 388.99 $ 251.22 54.8 % Orchards Inn Sedona 70 $ 297.81 $ 262.04 13.7 % 64.7 % 79.5 % (14.8) % $ 192.81 $ 208.25 (7.4) % Salt Lake City Marriott Downtown at City Creek 510 $ 195.54 $ 170.00 15.0 % 64.1 % 66.0 % (1.9) % $ 125.36 $ 112.24 11.7 % The Gwen Hotel 311 $ 286.85 $ 242.95 18.1 % 71.8 % 79.2 % (7.4) % $ 206.01 $ 192.44 7.1 % The Hythe Vail 344 $ 520.67 $ 346.67 50.2 % 59.1 % 63.2 % (4.1) % $ 307.67 $ 219.14 40.4 % The Landing Lake Tahoe Resort & Spa 82 $ 379.67 $ 273.14 39.0 % 40.8 % 54.1 % (13.3) % $ 155.02 $ 147.69 5.0 % The Lindy Renaissance Charleston Hotel 167 $ 365.12 $ 270.69 34.9 % 89.3 % 87.1 % 2.2 % $ 326.19 $ 235.71 38.4 % The Lodge at Sonoma Resort 182 $ 435.66 $ 286.18 52.2 % 59.9 % 69.5 % (9.6) % $ 260.85 $ 198.88 31.2 % Tranquility Bay Beachfront Resort 103 $ 735.05 $ 456.26 61.1 % 77.0 % 90.9 % (13.9) % $ 565.82 $ 414.93 36.4 % Westin Boston Waterfront 793 $ 239.76 $ 245.47 (2.3) % 81.6 % 75.3 % 6.3 % $ 195.76 $ 184.74 6.0 % Westin Fort Lauderdale Beach Resort 433 $ 307.21 $ 228.58 34.4 % 80.8 % 88.1 % (7.3) % $ 248.15 $ 201.29 23.3 % Westin San Diego Bayview 436 $ 210.13 $ 195.09 7.7 % 77.0 % 80.0 % (3.0) % $ 161.75 $ 156.11 3.6 % Westin Washington D.C. City Center 410 $ 234.16 $ 222.10 5.4 % 73.0 % 85.0 % (12.0) % $ 171.01 $ 188.80 (9.4) % Worthington Renaissance Fort Worth Hotel 504 $ 197.81 $ 190.08 4.1 % 76.6 % 78.5 % (1.9) % $ 151.51 $ 149.15 1.6 % Comparable Total (1) 9,521 $ 286.94 $ 241.22 19.0 % 71.8 % 77.3 % (5.5) % $ 205.94 $ 186.36 10.5 % (1)|Amounts include the pre-acquisition operating results of hotels acquired in 2021 and 2022 and exclude the Kimpton Fort Lauderdale Beach Resort as the hotel opened during 2021. Hotel Adjusted EBITDA Reconciliation - Second Quarter 2023 Net Income / (Loss) Plus: Plus: Plus: Equals: HotelAdjusted EBITDA Total Revenues Depreciation Interest Expense Adjustments (1) 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 Boston Downtown/Faneuil Hall $ 11,812 $ 3,122 $ 1,548 $ — $ — $ 4,670 Hilton Burlington Lake Champlain $ 6,207 $ 1,711 $ 560 $ — $ — $ 2,271 Hilton Garden Inn New York/Times Square Central $ 6,855 $ 1,216 $ 645 $ — $ — $ 1,861 Hotel Clio $ 6,781 $ 203 $ 860 $ 633 $ 5 $ 1,701 Hotel Emblem San Francisco $ 1,538 $ (447) $ 296 $ — $ — $ (151) Hotel Palomar Phoenix $ 6,201 $ 944 $ 488 $ — $ 178 $ 1,610 Kimpton Fort Lauderdale Beach Resort $ 1,971 $ (397) $ 306 $ — $ — $ (91) Kimpton Shorebreak 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 Gwen Hotel $ 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 Less: Non Comparable Hotel (2) $ (1,971) $ 397 $ (306) $ — $ — $ 91 Comparable Total $ 289,276 $ 60,320 $ 27,534 $ 4,235 $ 1,537 $ 93,620 (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 operating results of the Kimpton Fort Lauderdale Beach Resort , which is non-comparable since the hotel opened during 2021. Hotel Adjusted EBITDA Reconciliation - Second Quarter 2022 Net Income / (Loss) Plus: Plus: Plus: Equals: Hotel Total Revenues Depreciation Interest Expense Adjustments (1) Adjusted EBITDA Atlanta Marriott Alpharetta $ 3,786 $ 888 $ 373 $ — $ — $ 1,261 Bourbon Orleans Hotel $ 4,215 $ 1,135 $ 828 $ — $ 6 $ 1,969 Cavallo Point , The Lodge at the Golden Gate $ 13,395 $ 2,872 $ 1,865 $ — $ 94 $ 4,831 Chicago Marriott Downtown Magnificent Mile $ 27,279 $ 8,367 $ 3,855 $ 6 $ (397) $ 11,831 Courtyard Denver Downtown $ 3,272 $ 1,338 $ 376 $ — $ — $ 1,714 Courtyard New York Manhattan/Fifth Avenue $ 4,887 $ 544 $ 331 $ — $ 253 $ 1,128 Courtyard New York Manhattan/ Midtown East $ 8,877 $ 1,708 $ 487 $ 910 $ — $ 3,105 Embassy Suites by Hilton Bethesda $ 2,915 $ (1,811) $ 561 $ — $ 1,481 $ 231 Havana Cabana Key West $ 3,790 $ 1,336 $ 271 $ — $ — $ 1,607 Henderson Beach Resort $ 15,388 $ 3,502 $ 970 $ — $ — $ 4,472 Henderson Park Inn $ 3,060 $ 1,334 $ 223 $ — $ — $ 1,557 Hilton Boston Downtown/Faneuil Hall $ 11,310 $ 3,756 $ 1,016 $ — $ — $ 4,772 Hilton Burlington Lake Champlain $ 5,495 $ 1,465 $ 563 $ — $ — $ 2,028 Hilton Garden Inn New York/Times Square Central $ 7,733 $ 2,056 $ 625 $ — $ — $ 2,681 Hotel Clio $ 6,971 $ 291 $ 851 $ 647 $ 5 $ 1,794 Hotel Emblem San Francisco $ 2,158 $ 230 $ 294 $ — $ — $ 524 Hotel Palomar Phoenix $ 5,343 $ 722 $ 672 $ — $ 181 $ 1,575 Kimpton Fort Lauderdale Beach Resort $ 1,962 $ 39 $ 314 $ — $ — $ 353 Kimpton Shorebreak Resort $ 6,381 $ 2,240 $ 402 $ — $ — $ 2,642 L'Auberge de Sedona $ 10,198 $ 4,064 $ 356 $ — $ — $ 4,420 Margaritaville Beach House Key West $ 8,741 $ 3,521 $ 786 $ — $ — $ 4,307 Orchards Inn Sedona $ 2,783 $ 1,107 $ 85 $ — $ 42 $ 1,234 Salt Lake City Marriott Downtown at City Creek $ 6,786 $ 1,402 $ 564 $ 479 $ 11 $ 2,456 The Gwen Hotel $ 11,136 $ 3,737 $ 1,070 $ — $ — $ 4,807 The Hythe Vail $ 5,263 $ (1,684) $ 1,203 $ — $ — $ (481) The Landing Lake Tahoe Resort & Spa $ 2,763 $ 556 $ 217 $ — $ — $ 773 The Lindy Renaissance Charleston Hotel $ 7,178 $ 2,997 $ 462 $ — $ — $ 3,459 The Lodge at Sonoma Resort $ 9,333 $ 2,466 $ 632 $ 261 $ — $ 3,359 Tranquility Bay Beachfront Resort $ 7,173 $ 1,737 $ 732 $ — $ — $ 2,469 Westin Boston Seaport District $ 25,423 $ 3,823 $ 2,442 $ 2,037 $ (122) $ 8,180 Westin Fort Lauderdale Beach Resort $ 18,282 $ 5,295 $ 982 $ — $ — $ 6,277 Westin San Diego Bayview $ 8,557 $ 2,009 $ 836 $ 585 $ — $ 3,430 Westin Washington D.C. City Center $ 8,879 $ 1,427 $ 1,034 $ 592 $ — $ 3,053 Worthington Renaissance Fort Worth Hotel $ 10,695 $ 1,668 $ 1,111 $ 732 $ 2 $ 3,513 Total $ 281,407 $ 66,137 $ 27,389 $ 6,249 $ 1,556 $ 101,331 Add: Prior Ownership Results (2) $ 5,171 $ 2,337 $ (14) $ — $ — $ 2,323 Comparable Total $ 286,578 $ 68,474 $ 27,375 $ 6,249 $ 1,556 $ 103,654 (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 2022 acquisitions and excludes the Kimpton Fort Lauderdale Beach Resort . Hotel Adjusted EBITDA Reconciliation - Second Quarter 2019 Net Income / (Loss) Plus: Plus: Plus: Equals: Hotel Total Revenues Depreciation Interest Expense Adjustments (1) Adjusted EBITDA Atlanta Marriott Alpharetta $ 4,862 $ 1,188 $ 459 $ — $ — $ 1,647 Cavallo Point , The Lodge at the Golden Gate $ 10,721 $ 1,268 $ 1,789 $ — $ 110 $ 3,167 Chicago Marriott Downtown Magnificent Mile $ 34,590 $ 9,306 $ 4,166 $ 47 $ (397) $ 13,122 Courtyard Denver Downtown $ 3,291 $ 1,466 $ 287 $ — $ — $ 1,753 Courtyard New York Manhattan/Fifth Avenue $ 4,341 $ 283 $ 440 $ — $ 253 $ 976 Courtyard New York Manhattan/ Midtown East $ 8,048 $ 981 $ 688 $ 964 $ — $ 2,633 Embassy Suites by Hilton Bethesda $ 5,234 $ 18 $ 474 $ — $ 1,517 $ 2,009 Frenchman's Reef & Morning Star Marriott Beach Resort $ — $ (2) $ — $ — $ — $ (2) Havana Cabana Key West $ 2,438 $ 746 $ 235 $ — $ — $ 981 Hilton Boston Downtown/Faneuil Hall $ 13,161 $ 4,939 $ 1,233 $ — $ — $ 6,172 Hilton Burlington Lake Champlain $ 4,993 $ 1,422 $ 515 $ — $ — $ 1,937 Hilton Garden Inn New York/Times Square Central $ 7,090 $ 1,457 $ 826 $ — $ — $ 2,283 Hotel Clio $ 5,797 $ 265 $ 688 $ 687 $ 6 $ 1,646 Hotel Emblem San Francisco $ 1,995 $ 180 $ 297 $ — $ — $ 477 Hotel Palomar Phoenix $ 6,070 $ 668 $ 663 $ 38 $ 295 $ 1,664 Kimpton Shorebreak Resort $ 4,483 $ 1,192 $ 349 $ — $ 40 $ 1,581 L'Auberge de Sedona $ 7,668 $ 2,101 $ 508 $ — $ — $ 2,609 Margaritaville Beach House Key West $ 4,446 $ 1,217 $ 344 $ — $ — $ 1,561 Orchards Inn Sedona $ 2,414 $ 622 $ 237 $ — $ 42 $ 901 Salt Lake City Marriott Downtown at City Creek $ 7,863 $ 1,695 $ 574 $ 606 $ — $ 2,875 The Gwen Hotel $ 9,881 $ 2,332 $ 1,149 $ — $ — $ 3,481 The Hythe Vail $ 4,485 $ (1,622) $ 1,035 $ — $ — $ (587) The Landing Lake Tahoe Resort & Spa $ 1,804 $ (332) $ 385 $ — $ — $ 53 The Lexington Hotel $ 18,275 $ 1,324 $ 3,557 $ 8 $ 8 $ 4,897 The Lindy Renaissance Charleston Hotel $ 4,685 $ 1,906 $ 418 $ — $ (32) $ 2,292 The Lodge at Sonoma Resort $ 6,946 $ 1,501 $ 529 $ 280 $ — $ 2,310 Westin Boston Seaport District $ 29,239 $ 5,918 $ 2,436 $ 2,169 $ (60) $ 10,463 Westin Fort Lauderdale Beach Resort $ 12,614 $ 2,220 $ 1,633 $ — $ — $ 3,853 Westin San Diego Bayview $ 9,033 $ 1,629 $ 1,136 $ 634 $ — $ 3,399 Westin Washington D.C. City Center $ 10,316 $ 2,030 $ 1,317 $ 662 $ — $ 4,009 Worthington Renaissance Fort Worth Hotel $ 11,135 $ 2,548 $ 968 $ 780 $ 2 $ 4,298 Total $ 257,918 $ 50,466 $ 29,335 $ 6,875 $ 1,784 $ 88,351 Add: Prior Ownership Results (2) $ 25,088 $ 4,897 $ 2,039 $ — $ — $ 6,936 Less: Sold Hotels (3) $ (18,275) $ (1,322) $ (3,557) $ (8) $ (8) $ (4,895) Comparable Total $ 264,731 $ 54,041 $ 27,817 $ 6,867 $ 1,776 $ 90,392 (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 2021 and 2022 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:Interest Expense Plus: Adjustments (1) Equals: Hotel 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 Boston Downtown/Faneuil Hall $ 16,598 $ 1,578 $ 2,672 $ — $ — $ 4,250 Hilton Burlington Lake Champlain $ 9,479 $ 1,281 $ 1,128 $ — $ — $ 2,409 Hilton Garden Inn New York/Times Square Central $ 11,608 $ 981 $ 1,284 $ — $ — $ 2,265 Hotel Clio $ 12,135 $ (717) $ 1,722 $ 1,262 $ 10 $ 2,277 Hotel Emblem San Francisco $ 3,539 $ (477) $ 594 $ — $ — $ 117 Hotel Palomar Phoenix $ 13,855 $ 2,924 $ 1,149 $ — $ 359 $ 4,432 Kimpton Fort Lauderdale Beach Resort $ 5,146 $ 187 $ 609 $ — $ — $ 796 Kimpton Shorebreak 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 Gwen Hotel $ 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 Less: Non-Comparable Hotel (2) $ (5,146) $ (187) $ (609) $ — $ — $ (796) Comparable Total $ 529,654 $ 89,318 $ 54,703 $ 8,448 $ 3,087 $ 155,549 (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 operating results of the Kimpton Fort Lauderdale Beach Resort , which is non-comparable since the hotel opened during 2021. 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 $ 6,254 $ 1,167 $ 743 $ — $ — $ 1,910 Bourbon Orleans Hotel $ 7,264 $ 1,210 $ 1,648 $ — $ 13 $ 2,871 Cavallo Point , The Lodge at the Golden Gate $ 23,030 $ 3,904 $ 3,691 $ — $ 187 $ 7,782 Chicago Marriott Downtown Magnificent Mile $ 35,885 $ 2,165 $ 7,848 $ 11 $ (795) $ 9,229 Courtyard Denver Downtown $ 5,005 $ 1,520 $ 752 $ — $ — $ 2,272 Courtyard New York Manhattan/Fifth Avenue $ 7,237 $ (631) $ 661 $ — $ 507 $ 537 Courtyard New York Manhattan/ Midtown East $ 12,717 $ (564) $ 971 $ 1,816 $ — $ 2,223 Embassy Suites by Hilton Bethesda $ 3,855 $ (4,910) $ 1,114 $ — $ 2,972 $ (824) Havana Cabana Key West $ 8,405 $ 3,518 $ 554 $ — $ — $ 4,072 Henderson Beach Resort $ 22,294 $ 2,896 $ 1,923 $ — $ — $ 4,819 Henderson Park Inn $ 4,437 $ 1,251 $ 438 $ — $ — $ 1,689 Hilton Boston Downtown/Faneuil Hall $ 16,100 $ 2,719 $ 2,073 $ — $ — $ 4,792 Hilton Burlington Lake Champlain $ 8,263 $ 1,367 $ 1,124 $ — $ — $ 2,491 Hilton Garden Inn New York/Times Square Central $ 11,411 $ 1,445 $ 1,245 $ — $ — $ 2,690 Hotel Clio $ 11,911 $ (155) $ 1,652 $ 1,291 $ 10 $ 2,798 Hotel Emblem San Francisco $ 3,232 $ (243) $ 594 $ — $ — $ 351 Hotel Palomar Phoenix $ 11,725 $ 2,529 $ 1,347 $ — $ 366 $ 4,242 Kimpton Fort Lauderdale Beach Resort $ 1,962 $ 39 $ 314 $ — $ — $ 353 Kimpton Shorebreak Resort $ 10,780 $ 3,235 $ 805 $ — $ — $ 4,040 L'Auberge de Sedona $ 18,393 $ 6,442 $ 749 $ — $ — $ 7,191 Margaritaville Beach House Key West $ 19,690 $ 8,857 $ 1,592 $ — $ — $ 10,449 Orchards Inn Sedona $ 5,016 $ 1,698 $ 169 $ — $ 84 $ 1,951 Salt Lake City Marriott Downtown at City Creek $ 12,684 $ 2,444 $ 1,086 $ 957 $ 21 $ 4,508 The Gwen Hotel $ 16,174 $ 2,053 $ 2,145 $ — $ — $ 4,198 The Hythe Vail $ 22,996 $ 6,243 $ 2,400 $ — $ — $ 8,643 The Landing Lake Tahoe Resort & Spa $ 4,939 $ 1,112 $ 575 $ — $ — $ 1,687 The Lindy Renaissance Charleston Hotel $ 12,102 $ 4,618 $ 918 $ — $ — $ 5,536 The Lodge at Sonoma Resort $ 14,530 $ 2,369 $ 1,260 $ 521 $ — $ 4,150 Tranquility Bay Beachfront Resort $ 15,222 $ 4,611 $ 865 $ — $ — $ 5,476 Westin Boston Seaport District $ 38,447 $ (38) $ 4,898 $ 4,065 $ (245) $ 8,680 Westin Fort Lauderdale Beach Resort $ 40,731 $ 15,555 $ 1,974 $ — $ — $ 17,529 Westin San Diego Bayview $ 13,562 $ 1,698 $ 1,642 $ 1,169 $ — $ 4,509 Westin Washington D.C. City Center $ 11,796 $ 44 $ 2,052 $ 1,184 $ — $ 3,280 Worthington Renaissance Fort Worth Hotel $ 20,191 $ 2,750 $ 2,222 $ 1,461 $ 4 $ 6,437 Total $ 478,240 $ 82,918 $ 54,044 $ 12,475 $ 3,124 $ 152,558 Add: Prior Ownership Results (2) $ 12,010 $ 4,199 $ 296 $ — $ — $ 4,495 Comparable Total $ 490,250 $ 87,117 $ 54,340 $ 12,475 $ 3,124 $ 157,053 (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 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 $ 10,172 $ 2,768 $ 934 $ — $ — $ 3,702 Cavallo Point , The Lodge at the Golden Gate $ 19,967 $ 1,047 $ 3,729 $ — $ 142 $ 4,918 Chicago Marriott Downtown Magnificent Mile $ 50,721 $ 5,239 $ 8,295 $ 118 $ (795) $ 12,857 Courtyard Denver Downtown $ 5,537 $ 2,014 $ 584 $ — $ — $ 2,598 Courtyard New York Manhattan/Fifth Avenue $ 7,226 $ (622) $ 881 $ — $ 507 $ 766 Courtyard New York Manhattan/ Midtown East $ 13,303 $ (640) $ 1,379 $ 1,922 $ — $ 2,661 Embassy Suites by Hilton Bethesda $ 9,171 $ (954) $ 951 $ — $ 3,042 $ 3,039 Frenchman's Reef & Morning Star Marriott Beach Resort $ — $ 8,800 $ — $ — $ — $ 8,800 Havana Cabana Key West $ 5,354 $ 1,949 $ 480 $ — $ — $ 2,429 Hilton Boston Downtown/Faneuil Hall $ 19,833 $ 4,853 $ 2,477 $ — $ — $ 7,330 Hilton Burlington Lake Champlain $ 7,910 $ 1,466 $ 1,015 $ — $ — $ 2,481 Hilton Garden Inn New York/Times Square Central $ 11,714 $ 787 $ 1,671 $ — $ — $ 2,458 Hotel Clio $ 8,474 $ (1,213) $ 1,229 $ 1,370 $ 12 $ 1,398 Hotel Emblem San Francisco $ 3,344 $ (77) $ 572 $ — $ — $ 495 Hotel Palomar Phoenix $ 13,683 $ 2,743 $ 1,329 $ 76 $ 589 $ 4,737 Kimpton Shorebreak Resort $ 8,424 $ 1,778 $ 698 $ — $ 81 $ 2,557 L'Auberge de Sedona $ 13,622 $ 2,960 $ 1,017 $ — $ — $ 3,977 Margaritaville Beach House Key West $ 10,240 $ 3,612 $ 682 $ — $ — $ 4,294 Orchards Inn Sedona $ 4,292 $ 896 $ 475 $ — $ 84 $ 1,455 Salt Lake City Marriott Downtown at City Creek $ 14,737 $ 2,752 $ 1,104 $ 1,210 $ — $ 5,066 The Gwen Hotel $ 14,937 $ 773 $ 2,208 $ — $ — $ 2,981 The Hythe Vail, a Luxury Collection Resort $ 19,880 $ 4,923 $ 2,025 $ — $ — $ 6,948 The Landing Lake Tahoe Resort & Spa $ 3,558 $ (792) $ 761 $ — $ — $ (31) The Lexington Hotel $ 29,534 $ (3,098) $ 7,085 $ 12 $ 16 $ 4,015 The Lindy Renaissance Charleston Hotel $ 8,168 $ 2,796 $ 821 $ — $ (63) $ 3,554 The Lodge at Sonoma Resort $ 11,475 $ 1,165 $ 1,064 $ 558 $ — $ 2,787 Westin Boston Seaport District $ 46,982 $ 3,873 $ 4,849 $ 4,324 $ (120) $ 12,926 Westin Fort Lauderdale Beach Resort $ 30,115 $ 8,172 $ 3,178 $ — $ — $ 11,350 Westin San Diego Bayview $ 17,679 $ 3,330 $ 2,262 $ 1,264 $ — $ 6,856 Westin Washington D.C. City Center $ 17,410 $ 1,795 $ 2,639 $ 1,322 $ — $ 5,756 Worthington Renaissance Fort Worth Hotel $ 22,831 $ 5,729 $ 1,937 $ 1,555 $ 4 $ 9,225 Total $ 460,293 $ 68,824 $ 58,331 $ 13,731 $ 3,499 $ 144,280 Add: Prior Ownership Results (2) $ 44,475 $ 6,617 $ 4,077 $ — $ — $ 10,694 Less: Sold Hotels (3) $ (29,534) $ (5,702) $ (7,085) $ (12) $ (16) $ (12,815) Comparable Total $ 475,234 $ 69,739 $ 55,323 $ 13,719 $ 3,483 $ 142,159 (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 2021 and 2022 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-second-quarter-results-301892967.html SOURCE DiamondRock Hospitality Company

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