DIAMONDROCK HOSPITALITY COMPANY REPORTS THIRD QUARTER 2024 RESULTS

About this update from Diamondrock Hospitality Company

BETHESDA, Md. , Nov. 7, 2024 /PRNewswire/ -- DiamondRock Hospitality Company (the "Company") (NYSE: DRH), a lodging 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 September 30, 2024 . Third Quarter 2024 Highlights Net Income: Net income was $26.6 million , or $0.11 per diluted share. Comparable Revenues: $285.1 million , increased 2.5% compared to the third quarter of 2023. Comparable RevPAR: $214.44 , increased 2.8% compared to the third quarter of 2023. Comparable Hotel Adjusted EBITDA : $82.3 million , increased 2.2% compared to the third quarter of 2023. Comparable Hotel Adjusted EBITDA Margin : 28.85%, decreased 9 basis points compared to the third quarter of 2023. Adjusted EBITDA: $75.6 million , increased 3.3% compared to the third quarter of 2023. Adjusted FFO per Share: $0.26 , equal to the third quarter of 2023. Debt Financing: The Company repaid its $73.3 million mortgage loan secured by the Courtyard New York Manhattan/ Midtown East in August 2024 . Additionally, the Company extended the maturity date of its $300 million unsecured term loan by one year to January 2026 . Share Repurchases: The Company repurchased 0.7 million shares of its common stock at a weighted average price of $8.14 per share for a total consideration of approximately $5.4 million during the third quarter of 2024. "Third quarter operating results were largely in line with our expectations, with group revenues increasing over 15% compared to last year. As expected, Total RevPAR growth was more closely aligned with RevPAR growth this quarter as compared to the first half of this year due to the nature of the significant concentration in citywide group business this quarter. While our hotels in South Florida , New Orleans and Charleston sustained no damage from Hurricane Helene in September, the business interruption held back our company-wide third quarter RevPAR and Total RevPAR growth by 35 basis points. We are updating our full-year guidance range for RevPAR from a range of 1.5% to 3.0% to a range of 1.5% to 2.0% to reflect current transient trends and the impacts of Hurricanes Helene and Milton. We expect full-year Total RevPAR growth will continue to be approximately 150bp basis points higher. Importantly, we are reiterating the midpoint of our full-year Adjusted EBITDA guidance and increasing the midpoint of our Adjusted FFO per share guidance. Looking ahead, we continue to be keenly focused on maximizing free cash flow from our portfolio and a key component of that strategy is to recycle capital from non-core properties into more attractive investments such as additional on-strategy investments, share repurchases, and high return-on-investment projects." - 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. Three Months Ended September 30 , Nine Months Ended September 30 , 2024 2023 Change 2024 2023 Change ($ amounts in millions, except hotel statistics and per share amounts) Comparable Operating Results (1) ADR $ 282.02 $ 273.28 3.2 % $ 282.56 $ 280.98 0.6 % Occupancy 76.0 % 76.4 % (0.4) % 74.1 % 73.3 % 0.8 % RevPAR $ 214.44 $ 208.66 2.8 % $ 209.31 $ 206.07 1.6 % Total RevPAR $ 317.67 $ 310.54 2.3 % $ 318.32 $ 308.80 3.1 % Room Revenues $ 192.5 $ 186.9 3.0 % $ 559.5 $ 547.4 2.2 % Total Revenues $ 285.1 $ 278.2 2.5 % $ 850.8 $ 820.3 3.7 % Hotel Adjusted EBITDA $ 82.3 $ 80.5 2.2 % $ 243.2 $ 238.2 2.1 % Hotel Adjusted EBITDA Margin 28.85 % 28.94 % (9 bps) 28.58 % 29.04 % (46 bps) Available Rooms 897,552 895,743 1,809 2,672,871 2,656,299 16,572 Actual Operating Results (2) Total Revenues $ 285.1 $ 276.5 3.1 % $ 850.8 $ 811.3 4.9 % Net income $ 26.6 $ 27.3 (2.6) % $ 59.5 $ 75.7 (21.4) % Earnings per diluted share $ 0.11 $ 0.12 (8.3) % $ 0.25 $ 0.32 (21.9) % Adjusted EBITDA $ 75.6 $ 73.2 3.3 % $ 221.7 $ 214.4 3.4 % Adjusted FFO $ 55.7 $ 54.6 2.0 % $ 164.2 $ 159.9 2.7 % Adjusted FFO per diluted share $ 0.26 $ 0.26 — % $ 0.77 $ 0.75 2.7 % (1) Amounts represent the pre-acquisition operating results for Chico Hot Springs Resort from January 1, 2023 to July 31, 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 currently expects to spend approximately $85 million on capital improvements at its hotels in 2024. The Company has invested approximately $58.4 million in capital improvements at its hotels during the nine months ended September 30, 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 in July 2024 . Westin San Diego Bayview : The Company completed a comprehensive renovation of the hotel's guestrooms during the second quarter of 2024. Bourbon Orleans Hotel : The Company completed a comprehensive renovation of the hotel's guestrooms during the third quarter of 2024. Orchards Inn Sedona : The Company commenced the repositioning of Orchards Inn as the Cliffs at L'Auberge on November 1, 2024 . The repositioning 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 Company expects to complete the project in 2025. Balance Sheet and Liquidity As of September 30, 2024 , the Company had total debt outstanding of $1.1 billion , consisting of $800.0 million of unsecured term loans and $297.9 million of property-specific mortgage debt, with a weighted average interest rate of 5.60%. During the quarter ended September 30, 2024 , the Company repaid the $73.3 million mortgage loan secured by the Courtyard New York Manhattan/ Midtown East with cash on hand and exercised its right to extend the maturity date of its $300.0 million unsecured term loan for one year to January 3, 2026 . The Company has no debt maturities until May 2025 and full availability on its $400.0 million revolving credit facility. The Company ended the quarter with $591.7 million of liquidity, comprised of $75.3 million of unrestricted corporate cash, $116.4 million of unrestricted cash at its hotels and full availability of its revolving credit facility. Share Repurchase Program The Company has in place a Share Repurchase Program that provides for share repurchases in open market transactions. During the quarter ended September 30, 2024 , the Company repurchased 0.7 million shares of its common stock at an average price of $8.14 per share for a total purchase price of $5.4 million , bringing the total shares purchased year to date through September 30, 2024 , to 3.1 million shares at an average price of $8.33 per share for a total purchase price of $26.0 million . The Company currently has $174.0 million of remaining capacity under its $200.0 million share repurchase program. Dividends The Company declared a quarterly cash dividend of $0.03 per common share, which was paid on October 11, 2024 to shareholders of record as of September 30, 2024 . The Company paid a quarterly dividend of $0.515625 per share on its 8.250% Series A Cumulative Redeemable Preferred Stock on September 30, 2024 to shareholders of record as of September 20, 2024 . Guidance The Company has updated its full year outlook for 2024. The outlook is based on the current economic and operating environment for its existing portfolio of hotels and does not take into account any unanticipated impacts to it the business or operations. Achievement of the anticipated results is subject to the risks disclosed in the Company's filings with the U.S. Securities and Exchange Commission , which may cause actual results to differ materially from the anticipated results expressed or implied below. Previous Guidance Revised Guidance Change at Midpoint Metric Low End High End Low End High End Comparable RevPAR Growth 1.5 % 3.0 % 1.5 % 2.0 % (0.5 %) Comparable Total RevPAR Growth 3.0 % 4.5 % 3.0 % 3.5 % (0.5 %) Adjusted EBITDA $278 million $290 million $281 million $287 million - Adjusted FFO $201.5 million $213.5 million $205 million $210 million - Adjusted FFO per share $0.95 per share $1.00 per share $0.97 per share $0.99 per share +$0.005 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 approximately $66 million ; Income tax expense of $0.5 million to $1.5 million ; 212.1 million weighted average diluted shares; and 3,570,423 available rooms. Earnings Call The Company will host a conference call to discuss its third quarter results on Friday, November 8, 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) September 30, 2024 December 31, 2023 ASSETS (unaudited) Property and equipment, net $ 2,727,299 $ 2,755,195 Right-of-use assets 96,512 97,692 Restricted cash 44,493 45,576 Due from hotel managers 167,959 144,689 Prepaid and other assets 69,773 73,940 Cash and cash equivalents 75,287 121,595 Total assets $ 3,181,323 $ 3,238,687 LIABILITIES AND EQUITY Liabilities: Debt, net of unamortized debt issuance costs 1,097,215 1,177,005 Lease liabilities 114,387 112,866 Due to hotel managers 126,011 116,522 Deferred rent 72,576 69,209 Unfavorable contract liabilities, net 58,622 59,866 Accounts payable and accrued expenses 39,944 39,563 Distributions declared and unpaid 6,664 6,324 Deferred income related to key money, net 8,026 8,349 Total liabilities 1,523,445 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 September 30, 2024 and December 31, 2023 48 48 Common stock, $0.01 par value; 400,000,000 shares authorized; 207,276,487 and 209,627,197 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively 2,073 2,096 Additional paid-in capital 2,269,938 2,291,297 Accumulated other comprehensive loss (5,997) (2,036) Distributions in excess of earnings (616,934) (649,330) Total stockholders' equity 1,649,128 1,642,075 Noncontrolling interests 8,750 6,908 Total equity 1,657,878 1,648,983 Total liabilities and equity $ 3,181,323 $ 3,238,687 DIAMONDROCK HOSPITALITY COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) (unaudited) Three Months Ended September 30 , Nine Months Ended September 30 , 2024 2023 2024 2023 Revenues: Rooms $ 192,471 $ 186,334 $ 559,465 $ 544,325 Food and beverage 65,787 64,723 212,279 192,869 Other 26,871 25,463 79,088 74,126 Total revenues 285,129 276,520 850,832 811,320 Operating Expenses: Rooms 47,919 45,773 139,472 131,092 Food and beverage 47,319 45,428 145,275 134,486 Other departmental and support expenses 67,357 65,952 199,774 193,365 Management fees 7,093 7,323 20,411 19,196 Franchise fees 10,117 8,913 29,710 26,393 Other property-level expenses 24,752 25,704 78,558 76,755 Depreciation and amortization 28,356 27,683 84,542 82,995 Impairment losses 1,596 — 1,596 941 Corporate expenses 7,660 7,526 45,083 23,677 Business interruption insurance income — (537) — (647) Total operating expenses, net 242,169 233,765 744,421 688,253 Interest expense 16,986 15,973 49,434 48,712 Interest (income) and other (income) expense, net (1,001) (772) (3,265) (1,717) Total other expenses, net 15,985 15,201 46,169 46,995 Income before income taxes 26,975 27,554 60,242 76,072 Income tax expense (418) (224) (696) (420) Net income 26,557 27,330 59,546 75,652 Less: Net income attributable to noncontrolling interests (125) (58) (256) (259) Net income attributable to the Company 26,432 27,272 59,290 75,393 Distributions to preferred stockholders (2,454) (2,454) (7,362) (7,362) Net income attributable to common stockholders $ 23,978 $ 24,818 $ 51,928 $ 68,031 Earnings per share: Earnings per share available to common stockholders - basic $ 0.11 $ 0.12 $ 0.25 $ 0.32 Earnings per share available to common stockholders - diluted $ 0.11 $ 0.12 $ 0.25 $ 0.32 Weighted-average number of common shares outstanding: Basic 209,339,807 211,490,571 210,729,779 211,525,596 Diluted 210,208,081 212,204,989 211,600,114 212,129,712 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 September 30 , Nine Months Ended September 30 , 2024 2023 2024 2023 Net income $ 26,557 $ 27,330 $ 59,546 $ 75,652 Interest expense 16,986 15,973 49,434 48,712 Income tax expense 418 224 696 420 Real estate related depreciation and amortization 28,356 27,683 84,542 82,995 EBITDA 72,317 71,210 194,218 207,779 Impairment losses 1,596 — 1,596 941 EBITDAre 73,913 71,210 195,814 208,720 Non-cash lease expense and other amortization 1,531 1,533 4,604 4,620 Severance costs — — 20,362 — Hotel pre-opening costs 156 496 925 1,038 Adjusted EBITDA 75,600 73,239 221,705 214,378 Corporate expenses 7,660 7,526 24,721 23,677 Interest (income) and other (income) expense, net (1,001) (772) (3,265) (1,717) Hotel Adjusted EBITDA $ 82,259 $ 79,993 $ 243,161 $ 236,338 Full Year 2024 Guidance Low End High End Net income $ 71,305 $ 77,305 Interest expense 65,683 65,683 Income tax expense 500 1,500 Real estate related depreciation and amortization 116,000 115,000 EBITDA/EBITDAre 253,488 259,488 Non-cash lease expense and other amortization 6,200 6,200 Severance costs 20,362 20,362 Hotel pre-opening costs 950 950 Adjusted EBITDA $ 281,000 $ 287,000 FFO and Adjusted FFO The following tables are reconciliations of our GAAP net income to FFO and Adjusted FFO (in thousands): Three Months Ended September 30 , Nine Months Ended September 30 , 2024 2023 2024 2023 Net income $ 26,557 $ 27,330 $ 59,546 $ 75,652 Real estate related depreciation and amortization 28,356 27,683 84,542 82,995 Impairment losses 1,596 — 1,596 941 FFO 56,509 55,013 145,684 159,588 Distribution to preferred stockholders (2,454) (2,454) (7,362) (7,362) FFO available to common stock and unit holders 54,055 52,559 138,322 152,226 Non-cash lease expense and other amortization 1,531 1,533 4,604 4,620 Severance costs — — 20,362 — Hotel pre-opening costs 156 496 925 1,038 Fair value adjustments to interest rate swaps — — — 2,033 Adjusted FFO available to common stock and unit holders $ 55,742 $ 54,588 $ 164,213 $ 159,917 Adjusted FFO available to common stock and unit holders, per diluted share $ 0.26 $ 0.26 $ 0.77 $ 0.75 Full Year 2024 Guidance Low End High End Net income $ 71,305 $ 77,305 Real estate related depreciation and amortization 116,000 115,000 FFO 187,305 192,305 Distribution to preferred stockholders (9,817) (9,817) FFO available to common stock and unit holders 177,488 182,488 Non-cash lease expense and other amortization 6,200 6,200 Severance costs 20,362 20,362 Hotel pre-opening costs 950 950 Adjusted FFO available to common stock and unit holders $ 205,000 $ 210,000 Adjusted FFO available to common stock and unit holders, per diluted share $ 0.97 $ 0.99 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 September 30 , Nine Months Ended September 30 , 2024 2023 2024 2023 Revenues $ 285,129 $ 276,520 $ 850,832 $ 811,320 Hotel revenues from prior ownership (1) — 1,642 — 8,935 Comparable Revenues $ 285,129 $ 278,162 $ 850,832 $ 820,255 Hotel Adjusted EBITDA $ 82,259 $ 79,993 $ 243,161 $ 236,338 Hotel Adjusted EBITDA from prior ownership (1) — 499 — 1,825 Comparable Hotel Adjusted EBITDA $ 82,259 $ 80,492 $ 243,161 $ 238,163 Hotel Adjusted EBITDA Margin 28.85 % 28.93 % 28.58 % 29.13 % Comparable Hotel Adjusted EBITDA Margin 28.85 % 28.94 % 28.58 % 29.04 % (1) Amounts represent the pre-acquisition operating results for Chico Hot Springs Resort from January 1, 2023 to July 31, 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 for the Company's existing portfolio of hotels. 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 Quarter 3, 2024 ADR $ 269.53 $ 294.55 $ 282.02 Occupancy 68.4 % 77.8 % 76.0 % RevPAR $ 184.23 $ 229.21 $ 214.44 Total RevPAR $ 288.92 $ 348.37 $ 317.67 Revenues (in thousands) $ 256,423 $ 309,280 $ 285,129 Hotel Adjusted EBITDA (in thousands) $ 61,414 $ 99,488 $ 82,259 Hotel Adjusted EBITDA Margin 23.95 % 32.17 % 28.85 % Available Rooms 887,523 887,796 897,552 Market Capitalization as of September 30, 2024 (in thousands) Enterprise Value Common equity capitalization (at September 30, 2024 closing price of $8.73 /share) $ 1,841,475 Preferred equity capitalization (at liquidation value of $25.00 /share) 119,000 Consolidated debt (face amount) 1,097,866 Cash and cash equivalents (75,287) Total enterprise value $ 2,983,054 Share Reconciliation Common shares outstanding 207,276 Operating partnership units 1,135 Unvested restricted stock held by management and employees 622 Share grants under deferred compensation plan 1,904 Combined shares and units 210,937 Debt Summary as of September 30, 2024 (dollars in thousands) Loan Interest Rate Term Outstanding Principal Maturity Worthington Renaissance Fort Worth Hotel 3.66 % Fixed 72,267 May 2025 Hotel Clio 4.33 % Fixed 55,025 July 2025 Westin Boston Seaport District 4.36 % Fixed 170,574 November 2025 Unsecured term loan SOFR + 1.35% (1) Variable 500,000 January 2028 Unsecured term loan SOFR + 1.35% (2) Variable 300,000 January 2026 (3) Senior unsecured credit facility SOFR + 1.40% Variable — September 2026 (4) Total debt 1,097,866 Unamortized debt issuance costs (5) (651) Debt, net of unamortized debt issuance costs $ 1,097,215 Weighted-average interest rate of fixed rate debt 4.44 % Total weighted-average interest rate (6) 5.60 % (1) Interest rate as of September 30, 2024 was 5.93%, which includes the effect of interest rate swaps. (2) Interest rate as of September 30, 2024 was 6.31%. (3) In September 2024 , we exercised our option to extend the maturity by an additional year to January 2026 . (4) Maturity date may be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions. (5) Excludes debt issuance costs related to our senior unsecured credit facility, which are included within Other Assets on the accompanying consolidated balance sheet. (6) Weighted-average interest rate includes the effect of interest rate swaps. Operating Statistics – Third Quarter Number of Rooms ADR Occupancy RevPAR 3Q 2024 3Q 2023 B/(W) 2023 3Q 2024 3Q 2023 B/(W) 2023 3Q 2024 3Q 2023 B/(W) 2023 Atlanta Marriott Alpharetta 318 $ 151.36 $ 154.82 (2.2) % 65.5 % 69.4 % (3.9) % $ 99.12 $ 107.43 (7.7) % Bourbon Orleans Hotel 220 $ 205.99 $ 201.95 2.0 % 51.1 % 66.4 % (15.3) % $ 105.26 $ 134.04 (21.5) % Cavallo Point , The Lodge at the Golden Gate 142 $ 603.32 $ 589.26 2.4 % 66.8 % 57.8 % 9.0 % $ 402.94 $ 340.41 18.4 % Chicago Marriott Downtown Magnificent Mile 1,200 $ 277.90 $ 250.00 11.2 % 73.8 % 71.4 % 2.4 % $ 205.06 $ 178.61 14.8 % Chico Hot Springs Resort & Day Spa 117 $ 231.43 $ 184.10 25.7 % 77.8 % 84.3 % (6.5) % $ 180.10 $ 155.29 16.0 % Courtyard Denver Downtown 177 $ 234.62 $ 241.09 (2.7) % 86.2 % 82.6 % 3.6 % $ 202.34 $ 199.12 1.6 % Courtyard New York Manhattan/Fifth Avenue 189 $ 313.09 $ 299.95 4.4 % 91.9 % 97.2 % (5.3) % $ 287.59 $ 291.65 (1.4) % Courtyard New York Manhattan/ Midtown East 321 $ 361.67 $ 356.68 1.4 % 92.6 % 91.2 % 1.4 % $ 334.84 $ 325.19 3.0 % Embassy Suites by Hilton Bethesda 272 $ 171.55 $ 159.76 7.4 % 72.9 % 73.8 % (0.9) % $ 125.15 $ 117.93 6.1 % Havana Cabana Key West 106 $ 200.26 $ 236.66 (15.4) % 67.9 % 78.0 % (10.1) % $ 135.93 $ 184.58 (26.4) % Henderson Beach Resort 269 $ 448.94 $ 470.03 (4.5) % 61.5 % 67.4 % (5.9) % $ 276.32 $ 316.76 (12.8) % Henderson Park Inn 37 $ 629.44 $ 648.09 (2.9) % 69.4 % 80.5 % (11.1) % $ 437.13 $ 521.86 (16.2) % Hilton Garden Inn New York/Times Square Central 282 $ 280.91 $ 276.77 1.5 % 90.2 % 97.0 % (6.8) % $ 253.27 $ 268.48 (5.7) % Hotel Champlain Burlington 258 $ 292.90 $ 323.75 (9.5) % 90.5 % 86.1 % 4.4 % $ 264.96 $ 278.74 (4.9) % Hotel Clio 199 $ 330.21 $ 331.92 (0.5) % 84.1 % 77.4 % 6.7 % $ 277.62 $ 256.83 8.1 % Hotel Emblem San Francisco 96 $ 184.77 $ 234.01 (21.0) % 66.3 % 70.3 % (4.0) % $ 122.53 $ 164.57 (25.5) % Kimpton Hotel Palomar Phoenix 242 $ 173.90 $ 164.84 5.5 % 70.0 % 76.1 % (6.1) % $ 121.69 $ 125.47 (3.0) % Kimpton Shorebreak Fort Lauderdale Beach Resort 96 $ 137.87 $ 134.25 2.7 % 56.1 % 46.4 % 9.7 % $ 77.34 $ 62.25 24.2 % Kimpton Shorebreak Huntington Beach Resort 157 $ 367.61 $ 378.69 (2.9) % 87.2 % 85.0 % 2.2 % $ 320.50 $ 321.77 (0.4) % L'Auberge de Sedona 88 $ 698.04 $ 765.90 (8.9) % 58.8 % 54.6 % 4.2 % $ 410.76 $ 418.24 (1.8) % Lake Austin Spa Resort 40 $ 980.21 $ 983.07 (0.3) % 49.6 % 53.1 % (3.5) % $ 485.84 $ 521.72 (6.9) % Margaritaville Beach House Key West 186 $ 301.33 $ 313.67 (3.9) % 72.0 % 77.8 % (5.8) % $ 216.95 $ 244.18 (11.2) % Orchards Inn Sedona 70 $ 234.32 $ 240.57 (2.6) % 44.5 % 49.4 % (4.9) % $ 104.21 $ 118.79 (12.3) % Salt Lake City Marriott Downtown at City Creek 510 $ 183.42 $ 181.37 1.1 % 66.6 % 61.6 % 5.0 % $ 122.22 $ 111.69 9.4 % The Dagny Boston 403 $ 313.80 $ 292.31 7.4 % 91.5 % 86.5 % 5.0 % $ 287.06 $ 252.93 13.5 % The Gwen 311 $ 326.58 $ 320.89 1.8 % 79.0 % 79.9 % (0.9) % $ 257.90 $ 256.33 0.6 % The Hythe Vail 344 $ 293.87 $ 282.10 4.2 % 66.3 % 65.0 % 1.3 % $ 194.73 $ 183.45 6.1 % The Landing Lake Tahoe Resort & Spa 82 $ 555.15 $ 569.67 (2.5) % 80.7 % 76.9 % 3.8 % $ 448.01 $ 437.83 2.3 % The Lindy Renaissance Charleston Hotel 167 $ 314.33 $ 326.08 (3.6) % 83.7 % 88.9 % (5.2) % $ 262.97 $ 289.98 (9.3) % The Lodge at Sonoma Resort 182 $ 442.44 $ 490.51 (9.8) % 80.9 % 68.3 % 12.6 % $ 358.04 $ 334.84 6.9 % Tranquility Bay Beachfront Resort 103 $ 452.06 $ 495.75 (8.8) % 72.8 % 79.3 % (6.5) % $ 328.98 $ 393.05 (16.3) % Westin Boston Waterfront 793 $ 283.29 $ 250.75 13.0 % 91.5 % 92.4 % (0.9) % $ 259.28 $ 231.78 11.9 % Westin Fort Lauderdale Beach Resort 433 $ 176.75 $ 187.46 (5.7) % 69.5 % 58.6 % 10.9 % $ 122.83 $ 109.90 11.8 % Westin San Diego Bayview 436 $ 237.94 $ 223.42 6.5 % 83.2 % 85.5 % (2.3) % $ 198.01 $ 191.04 3.6 % Westin Washington D.C. City Center 410 $ 221.11 $ 185.80 19.0 % 71.1 % 81.5 % (10.4) % $ 157.14 $ 151.37 3.8 % Worthington Renaissance Fort Worth Hotel 504 $ 193.88 $ 186.10 4.2 % 67.0 % 70.4 % (3.4) % $ 129.91 $ 130.98 (0.8) % Comparable Total (1) 9,760 $ 282.02 $ 273.28 3.2 % 76.0 % 76.4 % (0.4) % $ 214.44 $ 208.66 2.8 % (1) Amounts include the pre-acquisition operating results of Chico Hot Springs Resort & Day Spa acquired in 2023. Operating Statistics – Year to Date Numberof 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 $ 157.67 $ 154.52 2.0 % 64.8 % 68.5 % (3.7) % $ 102.15 $ 105.84 (3.5) % Bourbon Orleans Hotel 220 $ 240.93 $ 236.68 1.8 % 68.7 % 76.9 % (8.2) % $ 165.54 $ 182.12 (9.1) % Cavallo Point , The Lodge at the Golden Gate 142 $ 578.72 $ 590.72 (2.0) % 59.9 % 55.8 % 4.1 % $ 346.52 $ 329.54 5.2 % Chicago Marriott Downtown Magnificent Mile 1,200 $ 252.74 $ 246.14 2.7 % 62.5 % 60.7 % 1.8 % $ 158.06 $ 149.41 5.8 % Chico Hot Springs Resort & Day Spa 117 $ 205.30 $ 176.15 16.5 % 74.0 % 75.4 % (1.4) % $ 152.00 $ 132.75 14.5 % Courtyard Denver Downtown 177 $ 207.97 $ 220.51 (5.7) % 79.3 % 78.4 % 0.9 % $ 164.84 $ 172.83 (4.6) % Courtyard New York Manhattan/Fifth Avenue 189 $ 279.65 $ 270.33 3.4 % 89.9 % 95.1 % (5.2) % $ 251.53 $ 257.20 (2.2) % Courtyard New York Manhattan/ Midtown East 321 $ 324.06 $ 314.26 3.1 % 92.6 % 90.5 % 2.1 % $ 299.98 $ 284.44 5.5 % Embassy Suites by Hilton Bethesda 272 $ 175.22 $ 163.58 7.1 % 71.8 % 71.9 % (0.1) % $ 125.78 $ 117.54 7.0 % Havana Cabana Key West 106 $ 305.80 $ 305.56 0.1 % 78.8 % 84.2 % (5.4) % $ 241.10 $ 257.20 (6.3) % Henderson Park Resort 269 $ 427.29 $ 458.10 (6.7) % 58.9 % 61.7 % (2.8) % $ 251.66 $ 282.64 (11.0) % Henderson Park Inn 37 $ 592.59 $ 627.97 (5.6) % 70.5 % 70.2 % 0.3 % $ 417.70 $ 440.90 (5.3) % Hilton Garden Inn New York/Times Square Central 282 $ 249.13 $ 252.61 (1.4) % 89.8 % 89.4 % 0.4 % $ 223.67 $ 225.73 (0.9) % Hotel Champlain Burlington 258 $ 238.69 $ 252.40 (5.4) % 74.3 % 76.2 % (1.9) % $ 177.25 $ 192.25 (7.8) % Hotel Clio 199 $ 311.61 $ 320.35 (2.7) % 77.7 % 71.2 % 6.5 % $ 242.10 $ 227.96 6.2 % Hotel Emblem San Francisco 96 $ 206.22 $ 245.70 (16.1) % 62.6 % 67.0 % (4.4) % $ 129.00 $ 164.55 (21.6) % Kimpton Hotel Palomar Phoenix 242 $ 224.89 $ 221.99 1.3 % 76.0 % 76.0 % — % $ 170.98 $ 168.72 1.3 % Kimpton Shorebreak Fort Lauderdale Beach Resort 96 $ 201.68 $ 217.03 (7.1) % 74.5 % 66.3 % 8.2 % $ 150.23 $ 143.81 4.5 % Kimpton Shorebreak Huntington Beach Resort 157 $ 328.41 $ 338.09 (2.9) % 83.8 % 81.3 % 2.5 % $ 275.26 $ 274.92 0.1 % L'Auberge de Sedona 88 $ 845.89 $ 907.24 (6.8) % 66.0 % 60.0 % 6.0 % $ 558.05 $ 544.22 2.5 % Lake Austin Spa Resort 40 $ 1,020.45 $ 1,071.67 (4.8) % 59.2 % 58.5 % 0.7 % $ 604.45 $ 627.30 (3.6) % Margaritaville Beach House Key West 186 $ 402.31 $ 403.61 (0.3) % 84.1 % 84.3 % (0.2) % $ 338.15 $ 340.19 (0.6) % Orchards Inn Sedona 70 $ 282.06 $ 281.82 0.1 % 56.5 % 59.6 % (3.1) % $ 159.41 $ 167.87 (5.0) % Salt Lake City Marriott Downtown at City Creek 510 $ 192.95 $ 190.89 1.1 % 68.5 % 63.3 % 5.2 % $ 132.09 $ 120.75 9.4 % The Dagny Boston 403 $ 274.31 $ 292.40 (6.2) % 85.9 % 75.0 % 10.9 % $ 235.63 $ 219.35 7.4 % The Gwen 311 $ 295.55 $ 299.15 (1.2) % 75.5 % 74.5 % 1.0 % $ 223.12 $ 222.97 0.1 % The Hythe Vail 344 $ 418.51 $ 435.10 (3.8) % 64.5 % 61.1 % 3.4 % $ 269.93 $ 265.81 1.5 % The Landing Lake Tahoe Resort & Spa 82 $ 436.36 $ 472.57 (7.7) % 64.2 % 53.0 % 11.2 % $ 279.94 $ 250.32 11.8 % The Lindy Renaissance Charleston Hotel 167 $ 342.25 $ 352.01 (2.8) % 88.1 % 89.2 % (1.1) % $ 301.38 $ 313.99 (4.0) % The Lodge at Sonoma Resort 182 $ 410.10 $ 455.78 (10.0) % 66.3 % 62.7 % 3.6 % $ 271.77 $ 285.78 (4.9) % Tranquility Bay Beachfront Resort 103 $ 623.30 $ 652.82 (4.5) % 76.0 % 77.8 % (1.8) % $ 473.45 $ 507.60 (6.7) % Westin Boston Waterfront 793 $ 263.76 $ 243.78 8.2 % 86.4 % 85.3 % 1.1 % $ 228.01 $ 207.90 9.7 % Westin Fort Lauderdale Beach Resort 433 $ 257.19 $ 274.94 (6.5) % 79.3 % 73.3 % 6.0 % $ 203.94 $ 201.56 1.2 % Westin San Diego Bayview 436 $ 231.87 $ 214.93 7.9 % 73.3 % 79.9 % (6.6) % $ 170.02 $ 171.62 (0.9) % Westin Washington D.C. City Center 410 $ 241.24 $ 216.66 11.3 % 72.6 % 75.9 % (3.3) % $ 175.11 $ 164.39 6.5 % Worthington Renaissance Fort Worth Hotel 504 $ 207.28 $ 194.08 6.8 % 71.2 % 74.5 % (3.3) % $ 147.54 $ 144.59 2.0 % Comparable Total (1) 9,760 $ 282.56 $ 280.98 0.6 % 74.1 % 73.3 % 0.8 % $ 209.31 $ 206.07 1.6 % (1) Amounts include the pre-acquisition operating results of Chico Hot Springs Resort & Day Spa acquired in 2023. Hotel Adjusted EBITDA Reconciliation - Third Quarter 2024 Net Income / (Loss) Plus: Plus: Plus: Equals: Hotel Adjusted EBITDA Total Revenues Depreciation Interest Expense Adjustments (1) Atlanta Marriott Alpharetta $ 4,071 $ 1,067 $ 382 $ — $ — $ 1,449 Bourbon Orleans Hotel $ 2,800 $ (900) $ 937 $ — $ 3 $ 40 Cavallo Point , The Lodge at the Golden Gate $ 12,730 $ 2,108 $ 1,453 $ — $ 94 $ 3,655 Chicago Marriott Downtown Magnificent Mile $ 34,444 $ 8,595 $ 3,212 $ 6 $ (397) $ 11,416 Chico Hot Springs Resort & Day Spa $ 4,661 $ 818 $ 418 $ — $ 1 $ 1,237 Courtyard Denver Downtown $ 3,623 $ 1,245 $ 374 $ — $ — $ 1,619 Courtyard New York Manhattan/Fifth Avenue $ 5,128 $ 323 $ 358 $ — $ 253 $ 934 Courtyard New York Manhattan/ Midtown East $ 10,264 $ 2,894 $ 538 $ 340 $ — $ 3,772 Embassy Suites by Hilton Bethesda $ 3,633 $ (1,403) $ 576 $ — $ 1,448 $ 621 Havana Cabana Key West $ 2,003 $ (405) $ 323 $ — $ — $ (82) Henderson Beach Resort $ 11,403 $ 1,800 $ 1,096 $ — $ — $ 2,896 Henderson Park Inn $ 2,361 $ 801 $ 277 $ — $ — $ 1,078 Hilton Garden Inn New York/Times Square Central $ 7,388 $ 1,320 $ 653 $ — $ — $ 1,973 Hotel Champlain Burlington $ 8,454 $ 2,440 $ 780 $ — $ — $ 3,220 Hotel Clio $ 8,134 $ 1,185 $ 853 $ 620 $ 5 $ 2,663 Hotel Emblem San Francisco $ 1,369 $ (271) $ 295 $ — $ — $ 24 Kimpton Hotel Palomar Phoenix $ 4,801 $ (116) $ 506 $ — $ 193 $ 583 Kimpton Shorebreak Fort Lauderdale Beach Resort $ 1,473 $ (752) $ 366 $ — $ — $ (386) Kimpton Shorebreak Huntington Beach Resort $ 6,243 $ 2,127 $ 340 $ — $ — $ 2,467 L'Auberge de Sedona $ 5,963 $ 482 $ 390 $ — $ — $ 872 Lake Austin Spa Resort $ 4,304 $ (146) $ 701 $ — $ — $ 555 Margaritaville Beach House Key West $ 5,405 $ 566 $ 763 $ — $ — $ 1,329 Orchards Inn Sedona $ 1,409 $ (61) $ 87 $ — $ 42 $ 68 Salt Lake City Marriott Downtown at City Creek $ 7,878 $ 1,700 $ 945 $ — $ 11 $ 2,656 The Dagny Boston $ 11,684 $ 3,575 $ 1,532 $ — $ — $ 5,107 The Gwen $ 11,137 $ 2,661 $ 745 $ — $ — $ 3,406 The Hythe Vail $ 11,180 $ 2,628 $ 1,168 $ — $ — $ 3,796 The Landing Lake Tahoe Resort & Spa $ 5,727 $ 2,424 $ 214 $ — $ — $ 2,638 The Lindy Renaissance Charleston Hotel $ 5,152 $ 1,717 $ 362 $ — $ — $ 2,079 The Lodge at Sonoma Resort $ 9,283 $ 2,736 $ 492 $ — $ — $ 3,228 Tranquility Bay Beachfront Resort $ 4,099 $ 589 $ 456 $ — $ — $ 1,045 Westin Boston Seaport District $ 26,731 $ 3,680 $ 2,412 $ 1,949 $ (122) $ 7,919 Westin Fort Lauderdale Beach Resort $ 11,670 $ (354) $ 1,046 $ — $ — $ 692 Westin San Diego Bayview $ 10,390 $ 2,014 $ 1,361 $ — $ — $ 3,375 Westin Washington D.C. City Center $ 7,335 $ 430 $ 1,035 $ — $ — $ 1,465 Worthington Renaissance Fort Worth Hotel $ 10,799 $ 1,239 $ 910 $ 701 $ — $ 2,850 Comparable Total $ 285,129 $ 48,756 $ 28,356 $ 3,616 $ 1,531 $ 82,259 (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 - Third Quarter 2023 Net Income / (Loss) Plus: Plus: Plus: Equals: Hotel Total Revenues Depreciation Interest Expense Adjustments (1) Adjusted EBITDA Atlanta Marriott Alpharetta $ 4,328 $ 1,018 $ 367 $ — $ — $ 1,385 Bourbon Orleans Hotel $ 3,437 $ 76 $ 866 $ — $ 6 $ 948 Cavallo Point , The Lodge at the Golden Gate $ 11,114 $ 1,348 $ 1,410 $ — $ 94 $ 2,852 Chicago Marriott Downtown Magnificent Mile $ 32,302 $ 8,332 $ 3,517 $ 6 $ (397) $ 11,458 Chico Hot Springs Resort & Day Spa $ 2,595 $ 357 $ 195 $ — $ — $ 552 Courtyard Denver Downtown $ 3,562 $ 1,386 $ 372 $ — $ — $ 1,758 Courtyard New York Manhattan/Fifth Avenue $ 5,327 $ 780 $ 350 $ — $ 253 $ 1,383 Courtyard New York Manhattan/ Midtown East $ 9,921 $ 2,073 $ 519 $ 895 $ — $ 3,487 Embassy Suites by Hilton Bethesda $ 3,361 $ (1,765) $ 570 $ — $ 1,463 $ 268 Havana Cabana Key West $ 2,517 $ (35) $ 290 $ — $ — $ 255 Henderson Beach Resort $ 11,721 $ 2,034 $ 1,015 $ — $ — $ 3,049 Henderson Park Inn $ 2,846 $ 1,071 $ 283 $ — $ — $ 1,354 Hilton Garden Inn New York/Times Square Central $ 7,700 $ 2,341 $ 646 $ — $ — $ 2,987 Hotel Champlain Burlington $ 8,421 $ 3,555 $ 551 $ — $ — $ 4,106 Hotel Clio $ 7,679 $ 836 $ 768 $ 635 $ 5 $ 2,244 Hotel Emblem San Francisco $ 1,684 $ (263) $ 296 $ — $ — $ 33 Kimpton Hotel Palomar Phoenix $ 4,724 $ (200) $ 496 $ — $ 178 $ 474 Kimpton Shorebreak Fort Lauderdale Beach Resort $ 1,022 $ (938) $ 312 $ — $ — $ (626) Kimpton Shorebreak Huntington Beach Resort $ 6,203 $ 2,048 $ 381 $ — $ — $ 2,429 L'Auberge de Sedona $ 5,950 $ 641 $ 362 $ — $ — $ 1,003 Lake Austin Spa Resort $ 4,543 $ 118 $ 647 $ — $ — $ 765 Margaritaville Beach House Key West $ 5,933 $ 934 $ 775 $ — $ — $ 1,709 Orchards Inn Sedona $ 1,586 $ 6 $ 93 $ — $ 42 $ 141 Salt Lake City Marriott Downtown at City Creek $ 7,630 $ 2,035 $ 677 $ — $ 11 $ 2,723 The Dagny Boston $ 10,420 $ 2,096 $ 1,522 $ — $ — $ 3,618 The Gwen $ 10,747 $ 2,725 $ 1,030 $ — $ — $ 3,755 The Hythe Vail $ 10,420 $ 1,897 $ 1,201 $ — $ — $ 3,098 The Landing Lake Tahoe Resort & Spa $ 5,767 $ 2,676 $ 135 $ — $ — $ 2,811 The Lindy Renaissance Charleston Hotel $ 5,507 $ 1,798 $ 477 $ — $ — $ 2,275 The Lodge at Sonoma Resort $ 8,746 $ 2,337 $ 635 $ — $ — $ 2,972 Tranquility Bay Beachfront Resort $ 4,888 $ 713 $ 449 $ — $ — $ 1,162 Westin Boston Seaport District $ 26,082 $ 3,135 $ 2,473 $ 1,999 $ (122) $ 7,485 Westin Fort Lauderdale Beach Resort $ 10,846 $ (1,632) $ 1,028 $ — $ — $ (604) Westin San Diego Bayview $ 10,006 $ 2,585 $ 850 $ — $ — $ 3,435 Westin Washington D.C. City Center $ 6,826 $ (244) $ 1,026 $ — $ — $ 782 Worthington Renaissance Fort Worth Hotel $ 10,159 $ 651 $ 1,099 $ 718 $ — $ 2,468 Total $ 276,520 $ 46,525 $ 27,683 $ 4,253 $ 1,533 $ 79,993 Add: Prior Ownership Results (2) $ 1,642 $ 424 $ 75 $ — $ — $ 499 Comparable Total $ 278,162 $ 46,949 $ 27,758 $ 4,253 $ 1,533 $ 80,492 (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 $ 12,834 $ 3,517 $ 1,105 $ — $ — $ 4,622 Bourbon Orleans Hotel $ 12,619 $ 1,550 $ 2,694 $ — $ (23) $ 4,221 Cavallo Point , The Lodge at the Golden Gate $ 35,223 $ 4,283 $ 4,324 $ — $ 281 $ 8,888 Chicago Marriott Downtown Magnificent Mile $ 87,188 $ 15,319 $ 9,685 $ 18 $ (1,192) $ 23,830 Chico Hot Springs Resort & Day Spa $ 11,647 $ 620 $ 1,201 $ — $ 4 $ 1,825 Courtyard Denver Downtown $ 8,907 $ 2,587 $ 1,085 $ — $ — $ 3,672 Courtyard New York Manhattan/Fifth Avenue $ 13,391 $ (239) $ 1,041 $ — $ 760 $ 1,562 Courtyard New York Manhattan/ Midtown East $ 27,378 $ 4,630 $ 1,554 $ 2,086 $ — $ 8,270 Embassy Suites by Hilton Bethesda $ 10,703 $ (4,368) $ 1,789 $ — $ 4,368 $ 1,789 Havana Cabana Key West $ 9,310 $ 1,607 $ 1,065 $ — $ — $ 2,672 Henderson Beach Resort $ 33,139 $ 4,697 $ 3,249 $ — $ — $ 7,946 Henderson Park Inn $ 6,668 $ 2,029 $ 818 $ — $ — $ 2,847 Hilton Garden Inn New York/Times Square Central $ 19,628 $ 2,301 $ 1,953 $ — $ — $ 4,254 Hotel Champlain Burlington $ 16,841 $ 2,233 $ 1,975 $ — $ — $ 4,208 Hotel Clio $ 21,936 $ 1,623 $ 2,497 $ 1,859 $ 14 $ 5,993 Hotel Emblem San Francisco $ 4,242 $ (621) $ 910 $ — $ — $ 289 Kimpton Hotel Palomar Phoenix $ 18,527 $ 2,791 $ 1,471 $ — $ 584 $ 4,846 Kimpton Shorebreak Fort Lauderdale Beach Resort $ 7,106 $ (577) $ 1,074 $ — $ — $ 497 Kimpton Shorebreak Huntington Beach Resort $ 16,997 $ 4,991 $ 1,061 $ — $ — $ 6,052 L'Auberge de Sedona $ 23,127 $ 5,303 $ 1,121 $ — $ — $ 6,424 Lake Austin Spa Resort $ 15,421 $ 1,550 $ 2,083 $ — $ — $ 3,633 Margaritaville Beach House Key West $ 23,317 $ 7,386 $ 2,064 $ — $ — $ 9,450 Orchards Inn Sedona $ 6,020 $ 1,047 $ 265 $ — $ 126 $ 1,438 Salt Lake City Marriott Downtown at City Creek $ 25,304 $ 6,425 $ 2,828 $ — $ 49 $ 9,302 The Dagny Boston $ 29,043 $ 5,278 $ 4,718 $ — $ — $ 9,996 The Gwen $ 28,076 $ 3,722 $ 2,475 $ — $ — $ 6,197 The Hythe Vail $ 39,671 $ 12,333 $ 3,520 $ — $ — $ 15,853 The Landing Lake Tahoe Resort & Spa $ 11,198 $ 2,967 $ 653 $ — $ — $ 3,620 The Lindy Renaissance Charleston Hotel $ 17,153 $ 6,395 $ 1,143 $ — $ — $ 7,538 The Lodge at Sonoma Resort $ 22,026 $ 4,471 $ 1,615 $ — $ — $ 6,086 Tranquility Bay Beachfront Resort $ 17,150 $ 4,048 $ 1,361 $ — $ — $ 5,409 Westin Boston Seaport District $ 77,585 $ 7,568 $ 7,336 $ 5,842 $ (367) $ 20,379 Westin Fort Lauderdale Beach Resort $ 52,237 $ 10,671 $ 3,182 $ — $ — $ 13,853 Westin San Diego Bayview $ 26,838 $ 4,099 $ 3,761 $ — $ — $ 7,860 Westin Washington D.C. City Center $ 24,830 $ 2,968 $ 3,231 $ — $ — $ 6,199 Worthington Renaissance Fort Worth Hotel $ 37,552 $ 6,809 $ 2,635 $ 2,100 $ — $ 11,544 Comparable Total $ 850,832 $ 142,013 $ 84,542 $ 11,905 $ 4,604 $ 243,161 (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 $ 12,584 $ 3,080 $ 1,090 $ — $ — $ 4,170 Bourbon Orleans Hotel $ 13,449 $ 2,831 $ 2,553 $ — $ 19 $ 5,403 Cavallo Point , The Lodge at the Golden Gate $ 33,762 $ 4,447 $ 4,198 $ — $ 281 $ 8,926 Chicago Marriott Downtown Magnificent Mile $ 79,569 $ 14,293 $ 10,709 $ 18 $ (1,192) $ 23,828 Chico Hot Springs Resort & Day Spa $ 2,595 $ 357 $ 195 $ — $ — $ 552 Courtyard Denver Downtown $ 9,215 $ 2,899 $ 1,126 $ — $ — $ 4,025 Courtyard New York Manhattan/Fifth Avenue $ 13,671 $ 874 $ 1,097 $ — $ 760 $ 2,731 Courtyard New York Manhattan/ Midtown East $ 25,890 $ 3,351 $ 1,524 $ 2,672 $ — $ 7,547 Embassy Suites by Hilton Bethesda $ 10,113 $ (4,917) $ 1,713 $ — $ 4,409 $ 1,205 Havana Cabana Key West $ 9,856 $ 2,294 $ 877 $ — $ — $ 3,171 Henderson Beach Resort $ 32,520 $ 4,492 $ 3,047 $ — $ — $ 7,539 Henderson Park Inn $ 7,044 $ 2,210 $ 785 $ — $ — $ 2,995 Hilton Garden Inn New York/Times Square Central $ 19,308 $ 3,322 $ 1,929 $ — $ — $ 5,251 Hotel Champlain Burlington $ 17,899 $ 4,837 $ 1,679 $ — $ — $ 6,516 Hotel Clio $ 19,814 $ 118 $ 2,490 $ 1,898 $ 14 $ 4,520 Hotel Emblem San Francisco $ 5,224 $ (740) $ 890 $ — $ — $ 150 Kimpton Hotel Palomar Phoenix $ 18,580 $ 2,724 $ 1,646 $ — $ 538 $ 4,908 Kimpton Shorebreak Fort Lauderdale Beach Resort $ 6,168 $ (751) $ 921 $ — $ — $ 170 Kimpton Shorebreak Huntington Beach Resort $ 16,579 $ 4,662 $ 1,177 $ — $ — $ 5,839 L'Auberge de Sedona $ 21,566 $ 4,622 $ 1,106 $ — $ — $ 5,728 Lake Austin Spa Resort $ 15,462 $ 1,837 $ 1,916 $ — $ — $ 3,753 Margaritaville Beach House Key West $ 23,355 $ 7,819 $ 2,366 $ — $ — $ 10,185 Orchards Inn Sedona $ 6,225 $ 1,106 $ 273 $ — $ 126 $ 1,505 Salt Lake City Marriott Downtown at City Creek $ 23,233 $ 6,549 $ 1,912 $ — $ 32 $ 8,493 The Dagny Boston $ 27,018 $ 3,674 $ 4,195 $ — $ — $ 7,869 The Gwen $ 27,126 $ 3,510 $ 3,163 $ — $ — $ 6,673 The Hythe Vail $ 37,727 $ 11,374 $ 3,603 $ — $ — $ 14,977 The Landing Lake Tahoe Resort & Spa $ 10,074 $ 2,520 $ 666 $ — $ — $ 3,186 The Lindy Renaissance Charleston Hotel $ 17,758 $ 6,584 $ 1,418 $ — $ — $ 8,002 The Lodge at Sonoma Resort $ 23,812 $ 4,918 $ 1,933 $ — $ — $ 6,851 Tranquility Bay Beachfront Resort $ 18,222 $ 4,401 $ 1,315 $ — $ — $ 5,716 Westin Boston Seaport District $ 71,511 $ 5,271 $ 7,421 $ 5,969 $ (367) $ 18,294 Westin Fort Lauderdale Beach Resort $ 50,066 $ 9,178 $ 3,096 $ — $ — $ 12,274 Westin San Diego Bayview $ 27,124 $ 6,023 $ 2,561 $ — $ — $ 8,584 Westin Washington D.C. City Center $ 22,481 $ 1,435 $ 3,070 $ — $ — $ 4,505 Worthington Renaissance Fort Worth Hotel $ 34,720 $ 4,824 $ 3,335 $ 2,145 $ — $ 10,304 Total $ 811,320 $ 136,028 $ 82,995 $ 12,702 $ 4,620 $ 236,338 Add: Prior Ownership Results (2) $ 8,935 $ 1,300 $ 525 $ — $ — $ 1,825 Comparable Total $ 820,255 $ 137,328 $ 83,520 $ 12,702 $ 4,620 $ 238,163 (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-third-quarter-2024-results-302299186.html SOURCE DiamondRock Hospitality Company

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