DRH - DIAMONDROCK HOSPITALITY COMPANY REPORTS SECOND QUARTER RESULTS

August, 03 2022 04:05 PM Diamondrock Hospitality Company

PR Newswire

Achieves Record Revenues and Profits

Reinstates Quarterly Common Dividend

BETHESDA, Md. , Aug. 3, 2022 /PRNewswire/ -- DiamondRock Hospitality Company (the "Company") (NYSE: DRH), a lodging-focused real estate investment trust that owns a portfolio of 34 premium hotels in the United States , today announced results of operations for the quarter ended June 30, 2022 .

Second Quarter 2022 Highlights

Net Income: Net income was $52.7 million and earnings per diluted share was $0.23 .
Comparable Revenues: Comparable total revenues were $279.4 million , a 89.4% increase over 2021 and a 7.4% increase over 2019.
Comparable RevPAR: Comparable RevPAR was $222.70 , a 87.1% increase over 2021 and a 6.9% increase over 2019.
Comparable Hotel Adjusted EBITDA: Comparable Hotel Adjusted EBITDA was $101.0 million , which exceeded the comparable period of 2019 by 13.1%.
Comparable Hotel Adjusted EBITDA Margin: Comparable Hotel Adjusted EBITDA margin was 36.14%, which exceeded the comparable period of 2019 by 182 basis points and set a new record for the Company.
Adjusted EBITDA: Adjusted EBITDA was $92.0 million , a 13.4% increase over 2019.
Adjusted FFO: Adjusted FFO was $76.5 million and Adjusted FFO per diluted share was $0.36 .
Hotel Acquisition: The Company acquired the Kimpton Fort Lauderdale Beach Resort for $35.3 million on April 1, 2022 .
Debt Covenant Compliance: The Company is in compliance with all of the original financial covenants under its credit agreements as of June 30, 2022 and has exited the covenant waiver period.

Recent Developments

Reinstatement of Common Dividend: On August 2, 2022 , the Company declared a quarterly cash dividend of $0.03 per share on its common shares.
Preliminary July Comparable RevPAR: July Comparable RevPAR was $214.98 , a 11.0% increase over 2019.

"We are pleased to report that DiamondRock set new records for RevPAR, total revenues, and hotel profit margins in the second quarter on robust travel demand," said Mark W. Brugger , President and Chief Executive Officer of DiamondRock Hospitality Company. "With the outstanding results of our strategically assembled portfolio, we easily complied with all of our loan covenants, exited all the covenant waiver restrictions and resumed our cash dividend to common shareholders."

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 our 2021 and 2022 acquisitions and exclude our 2021 dispositions, as well as the Kimpton Fort Lauderdale Beach Resort, which opened in April 2021 , for all periods presented. See "Reconciliation of Comparable Operating Results" attached to this press release for a reconciliation to historical amounts.


Quarter Ended June 30,

Change From

2022
2021
2019

2021
2019

($ amounts in millions, except hotel statistics and per share amounts)
Comparable Operating Results ⁽¹⁾






ADR
297.36
241.35
252.68

23.2 %
17.7 %
Occupancy
74.9 %
49.3 %
82.4 %

25.6 %
(7.5) %
RevPAR
222.70
119.00
208.24

87.1 %
6.9 %
Total RevPAR
324.68
171.53
302.81

89.3 %
7.2 %
Revenues
279.4
147.5
260.2

89.4 %
7.4 %
Hotel Adjusted EBITDA
101.0
36.0
89.3

180.6 %
13.1 %
Hotel Adjusted EBITDA Margin
36.14 %
24.37 %
34.32 %

1,177 bps
182 bps
Available Rooms
860,683
860,103
859,374

580
1,309







Actual Operating Results ⁽²⁾






Revenues
281.4
124.8
257.9

125.5 %
9.1 %
Net income (loss)
52.7
(19.1)
29.1

375.9 %
81.1 %
Income (loss) per diluted share
0.23
(0.10)
0.14

330.0 %
64.3 %
Adjusted EBITDA
92.0
19.8
81.1

364.6 %
13.4 %
Adjusted FFO
76.5
11.1
65.1

589.2 %
17.5 %
Adjusted FFO per diluted share
0.36
0.05
0.32

620.0 %
12.5 %


Six Months Ended June 30,

Change From

2022
2021
2019

2021
2019

($ amounts in millions, except hotel statistics and per share amounts)
Comparable Operating Results ⁽¹⁾






ADR
289.60
239.53
239.21

20.9 %
21.1 %
Occupancy
65.4 %
39.5 %
77.3 %

25.9 %
(11.9) %
RevPAR
189.43
94.68
184.97

100.1 %
2.4 %
Total RevPAR
278.53
136.83
273.02

103.6 %
2.0 %
Revenues
476.7
234.1
466.6

103.6 %
2.2 %
Hotel Adjusted EBITDA
152.1
38.1
140.3

299.2 %
8.4 %
Hotel Adjusted EBITDA Margin
31.91 %
16.28 %
30.07 %

1,563 bps
184 bps
Available Rooms
1,711,525
1,710,603
1,709,048

922
2,477







Actual Operating Results ⁽²⁾






Revenues
478.2
197.7
460.3

141.9 %
3.9 %
Net income (loss)
62.8
(190.7)
38.1

132.9 %
64.8 %
Income (loss) per diluted share
0.27
(0.92)
0.19

129.3 %
42.1 %
Adjusted EBITDA
136.9
10.2
130.2

1242.2 %
5.1 %
Adjusted FFO
107.3
(13.7)
107.1

883.2 %
0.2 %
Adjusted FFO per diluted share
0.50
(0.06)
0.53

933.3 %
(5.7) %

⁽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 and Tranquility Bay Beachfront Resort from January 1, 2019 to January 5, 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 hotels acquired and disposed of for the Company's respective ownership periods.

The following tables provide comparable monthly operating information for the Company's portfolio owned as of June 30, 2022 :


January 2022

February 2022

March 2022

April 2022

May 2022

June 2022

Preliminary July 2022


Number of Hotels
33

33

33

33

33

33

33

Number of Rooms
9,454

9,454

9,454

9,454

9,454

9,471

9,471

Occupancy
41.3 %

57.9 %

68.4 %

72.4 %

72.9 %

79.4 %

74.9 %

ADR
$245.13

$283.49

$296.22

$291.71

$297.08

$302.78

$287.06

RevPAR
$101.19

$164.25

$202.67

$211.29

$216.62

$240.37

$214.98

Total RevPAR
$154.77

$242.91

$298.92

$304.35

$325.36

$344.28

$306.24

2022 vs 2019
Occupancy change in bps
(2,216) bps

(1,633) bps

(1,062) bps

(882) bps

(740) bps

(634) bps

(749) bps

ADR Rate % change
20.6 %

29.1 %

21.7 %

17.5 %

16.1 %

19.3 %

22.1 %

RevPAR % change
(21.5) %

0.7 %

5.3 %

4.7 %

5.4 %

10.5 %

11.0 %

Total RevPAR % change
(22.2) %

(2.3) %

6.1 %

4.3 %

7.0 %

10.2 %

12.6 %

Hotel Acquisition

On April 1, 2022 , the Company acquired the 96-room Kimpton Fort Lauderdale Beach Resort for $35.3 million , or $367,700 per key in an off-market transaction. Upon acquisition, the Company engaged HEI Hotels & Resorts to operate the hotel in order to combine operations and realize synergies with its nearby Westin Fort Lauderdale Beach Resort & Spa.

Capital Expenditures

The Company invested approximately $28.0 million in capital improvements at its hotels during the six months ended June 30 , 2022. The Company continues to expect to spend approximately $100 million on capital improvements at its hotels in 2022. Significant projects include the following:

Hotel Clio: The Company completed renovations in March 2022 to rebrand the JW Marriott Denver Cherry Creek as the Hotel Clio, a Luxury Collection Hotel.
Kimpton Hotel Palomar Phoenix: The Company is in the process of completing a comprehensive rebranding and repositioning of the rooftop bar and pool at the hotel.
Hilton Boston Downtown/Faneuil Hall: The Company expects to commence a comprehensive renovation in the fourth quarter of 2022 to reposition the hotel as an experiential lifestyle property to be completed in mid-2023.
Orchards Inn Sedona: The Company expects to commence an upgrade renovation of the resort in late 2022. The renovation will reposition the resort as The Cliffs at L'Auberge.
Hilton Burlington Lake Champlain : The Company is working with Hilton Worldwide to potentially rebrand the hotel as a Curio Collection hotel. The repositioning is expected to be completed in early 2023 and includes a new restaurant concept by a local James Beard -nominated chef.

Balance Sheet and Liquidity

The Company ended the quarter with liquidity of $390.2 million , comprised of $71.7 million of unrestricted corporate cash, $118.5 million of unrestricted cash at its hotels and $200.0 million of capacity on its senior unsecured credit facility. As of June 30, 2022 , the Company had $1.2 billion of total debt outstanding, which consisted of $572.7 million of property-specific, non-recourse mortgage debt, $400.0 million of unsecured term loans and $200.0 million of outstanding borrowings on its $400.0 million senior unsecured credit facility. Subsequent to June 30, 2022 , the Company repaid $25.0 million on its senior unsecured credit facility.

The Company is in compliance with all of the original financial covenants under the credit agreements for its unsecured term loans and senior unsecured credit facility as of June 30, 2022 and has exited the covenant waiver restriction period.

Dividends

The Company declared a quarterly dividend of $0.515625 per share on its 8.250% Series A Cumulative Redeemable Preferred Stock to shareholders of record as of June 17 , 2022. This dividend was paid on June 30, 2022 .

On August 2, 2022 , the Company declared a quarterly cash dividend of $0.03 per share on its common shares, which will be paid to stockholders of record as of September 30 , 2022. The dividend will be paid on October 12 , 2022.

Earnings Call

The Company will host a conference call to discuss its second quarter results on Thursday, August 4, 2022 , at 12:00 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 34 premium quality hotels with over 9,500 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; risks associated with the level of the Company's indebtedness and its ability to obtain covenant waivers on its credit agreements for its senior unsecured credit facility and unsecured term loans; 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, 2022

December 31, 2021
ASSETS
(unaudited)


Property and equipment, net
2,689,059

2,651,444
Right-of-use assets
99,617

100,212
Restricted cash
42,354

36,887
Due from hotel managers
174,407

120,671
Prepaid and other assets
67,656

17,472
Cash and cash equivalents
71,713

38,620
Total assets
3,144,806

2,965,306
LIABILITIES AND EQUITY



Liabilities:



Mortgage and other debt, net of unamortized debt issuance costs
571,192

578,651
Unsecured term loans, net of unamortized debt issuance costs
398,822

398,572
Senior unsecured credit facility
200,000

90,000
Total debt
1,170,014

1,067,223




Lease liabilities
109,708

108,605
Deferred rent
63,064

60,800
Due to hotel managers
106,048

85,493
Unfavorable contract liabilities, net
61,898

62,780
Accounts payable and accrued expenses
43,162

51,238
Deferred income related to key money, net
8,996

8,203
Total liabilities
1,562,890

1,444,342
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, 2022 and December 31, 2021
48

48
Common stock, $0.01 par value; 400,000,000 shares authorized; 210,923,015 and 210,746,895 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively
2,109

2,107
Additional paid-in capital
2,296,864

2,293,990
Distributions in excess of earnings
(723,294)

(780,931)
Total stockholders' equity
1,575,727

1,515,214
Noncontrolling interests
6,189

5,750
Total equity
1,581,916

1,520,964
Total liabilities and equity
3,144,806

2,965,306

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,

2022

2021

2022

2021
Revenues:







Rooms
193,025

86,896

325,195

137,308
Food and beverage
68,606

25,614

114,354

39,539
Other
19,776

12,281

38,691

20,881
Total revenues
281,407

124,791

478,240

197,728
Operating Expenses:







Rooms
42,645

21,466

76,475

35,294
Food and beverage
43,471

19,573

76,692

31,134
Management fees
6,312

2,291

10,332

3,410
Franchise fees
8,693

3,735

14,503

6,182
Other hotel expenses
80,498

51,874

151,007

100,809
Depreciation and amortization
27,389

24,692

54,044

51,654
Impairment losses
—

4,145

2,843

126,697
Corporate expenses
8,726

8,290

14,759

15,449
Business interruption insurance income
—

—

(499)

—
Total operating expenses, net
217,734

136,066

400,156

370,629








Interest and other expense (income), net
606

(315)

892

(471)
Interest expense
9,675

10,710

13,794

19,194
Total other expenses, net
10,281

10,395

14,686

18,723
Income (loss) before income taxes
53,392

(21,670)

63,398

(191,624)
Income tax (expense) benefit
(691)

2,551

(637)

938
Net income (loss)
52,701

(19,119)

62,761

(190,686)
Less: Net (income) loss attributable to noncontrolling interests
(184)

86

(216)

806
Net income (loss) attributable to the Company
52,517

(19,033)

62,545

(189,880)
Distributions to preferred stockholders
(2,454)

(2,454)

(4,908)

(4,908)
Net income (loss) attributable to common stockholders
50,063

(21,487)

57,637

(194,788)
Earnings (loss) per share:







Earnings (loss) per share available to common stockholders - basic
0.24

(0.10)

0.27

(0.92)
Earnings (loss) per share available to common stockholders - diluted
0.23

(0.10)

0.27

(0.92)








Weighted-average number of common shares outstanding:







Basic
212,834,222

211,966,308

212,663,838

211,819,758
Diluted
213,520,706

211,966,308

213,279,174

211,819,758

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, EBITDA re , 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, EBITDA re , 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, EBITDA re , 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 EBITDA re 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." EBITDA re 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 EBITDA re of unconsolidated affiliates.

We believe EBITDA and EBITDA re 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 EBITDA re , 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 EBITDA re 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 EBITDA re , 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, EBITDA re , 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 EBITDA re , 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.
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: pre-opening costs incurred with newly developed hotels; 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,

2022

2021

2019
Net income (loss)
52,701

(19,119)

29,074
Interest expense
9,675

10,710

12,418
Income tax expense (benefit)
691

(2,551)

4,571
Real estate related depreciation and amortization
27,389

24,692

29,335
EBITDA
90,456

13,732

75,398
Impairment losses
—

4,145

—
EBITDA re
90,456

17,877

75,398
Non-cash lease expense and other amortization
1,556

1,671

1,784
Professional fees and pre-opening costs related to Frenchman's Reef ⁽¹⁾
—

478

3,700
Hotel manager transition items
(13)

—

171
Severance costs ⁽²⁾
—

(226)

—
Adjusted EBITDA
91,999

19,800

81,053


Six Months Ended June 30,

2022

2021

2019
Net income (loss)
62,761

(190,686)

38,054
Interest expense
13,794

19,194

24,080
Income tax expense (benefit)
637

(938)

722
Real estate related depreciation and amortization
54,044

51,654

58,331
EBITDA
131,236

(120,776)

121,187
Impairment losses
2,843

126,697

—
EBITDA re
134,079

5,921

121,187
Non-cash lease expense and other amortization
3,124

3,343

3,499
Professional fees and pre-opening costs related to Frenchman's Reef ⁽¹⁾
—

1,053

5,067
Hotel manager transition items
236

128

468
Severance costs ⁽²⁾
(532)

(216)

—
Adjusted EBITDA
136,907

10,229

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,

2022

2021

2019
Net income (loss)
52,701

(19,119)

29,074
Interest expense
9,675

10,710

12,418
Income tax expense (benefit)
691

(2,551)

4,571
Real estate related depreciation and amortization
27,389

24,692

29,335
EBITDA
90,456

13,732

75,398
Corporate expenses
8,726

8,290

7,403
Interest and other expense (income), net
606

(315)

(105)
Professional fees and pre-opening costs related to Frenchman's Reef ⁽¹⁾
—

478

3,700
Impairment losses
—

4,145

—
Hotel EBITDA
99,788

26,330

86,396
Non-cash lease expense and other amortization
1,556

1,671

1,784
Hotel manager transition items
(13)

—

171
Severance costs ⁽²⁾
—

(226)

—
Hotel Adjusted EBITDA
101,331

27,775

88,351


Six Months Ended June 30,

2022

2021

2019
Net income (loss)
62,761

(190,686)

38,054
Interest expense
13,794

19,194

24,080
Income tax expense (benefit)
637

(938)

722
Real estate related depreciation and amortization
54,044

51,654

58,331
EBITDA
131,236

(120,776)

121,187
Corporate expenses
14,759

15,449

14,467
Interest and other expense (income), net
892

(471)

(408)
Professional fees and pre-opening costs related to Frenchman's Reef ⁽¹⁾
—

1,053

5,067
Impairment losses
2,843

126,697

—
Hotel EBITDA
149,730

21,952

140,313
Non-cash lease expense and other amortization
3,124

3,343

3,499
Hotel manager transition items
236

128

468
Severance costs ⁽²⁾
(532)

(216)

—
Hotel Adjusted EBITDA
152,558

25,207

144,280

⁽¹⁾

⁽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,

2022

2021

2019
Net income (loss)
52,701

(19,119)

29,074
Real estate related depreciation and amortization
27,389

24,692

29,335
Impairment losses, net of tax
—

6,945

—
FFO
80,090

12,518

58,409
Distribution to preferred stockholders
(2,454)

(2,454)

—
FFO available to common stock and unit holders
77,636

10,064

58,409
Non-cash lease expense and other amortization
1,556

1,671

1,784
Professional fees and pre-opening costs related to Frenchman's Reef ⁽¹⁾
—

478

3,700
Hotel manager transition items
(13)

—

171
Severance costs ⁽²⁾
—

(226)

—
Fair value adjustments to interest rate swaps
(2,720)

(838)

1,075
Adjusted FFO available to common stock and unit holders
76,459

11,149

65,139
Adjusted FFO available to common stock and unit holders, per diluted share
0.36

0.05

0.32


Six Months Ended June 30,

2022

2021

2019
Net income (loss)
62,761

(190,686)

38,054
Real estate related depreciation and amortization
54,044

51,654

58,331
Impairment losses, net of tax
2,843

129,497

—
FFO
119,648

(9,535)

96,385
Distribution to preferred stockholders
(4,908)

(4,908)

—
FFO available to common stock and unit holders
114,740

(14,443)

96,385
Non-cash lease expense and other amortization
3,124

3,343

3,499
Professional fees and pre-opening costs related to Frenchman's Reef ⁽¹⁾
—

1,053

5,067
Hotel manager transition items
236

128

468
Severance costs ⁽²⁾
(532)

(216)

—
Fair value adjustments to interest rate swaps
(10,222)

(3,569)

1,647
Adjusted FFO available to common stock and unit holders
107,346

(13,704)

107,066
Adjusted FFO available to common stock and unit holders, per diluted share
0.50

(0.06)

0.53

⁽¹⁾

⁽²⁾

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,

2022

2021

2019
Revenues
281,407

124,791

257,918
Hotel revenues from prior ownership ⁽¹⁾
(1,962)

22,764

20,584
Hotel revenues from sold hotels ⁽²⁾
—

(18)

(18,275)
Comparable Revenues
279,445

147,537

260,227






Hotel Adjusted EBITDA
101,331

27,775

88,351
Hotel Adjusted EBITDA from prior ownership ⁽¹⁾
(353)

6,918

5,854
Hotel Adjusted EBITDA from sold hotels ⁽²⁾
—

1,263

(4,895)
Comparable Hotel Adjusted EBITDA
100,978

35,956

89,310






Hotel Adjusted EBITDA Margin
36.01 %

22.26 %

34.26 %
Comparable Hotel Adjusted EBITDA Margin
36.14 %

24.37 %

34.32 %


Six Months Ended June 30,

2022

2021

2019
Revenues
478,240

197,728

460,293
Hotel revenues from prior ownership ⁽¹⁾
(1,532)

36,402

35,841
Hotel revenues from sold hotels ⁽²⁾
—

(60)

(29,534)
Comparable Revenues
476,708

234,070

466,600






Hotel Adjusted EBITDA
152,558

25,207

144,280
Hotel Adjusted EBITDA from prior ownership ⁽¹⁾
(460)

8,419

8,820
Hotel Adjusted EBITDA from sold hotels ⁽²⁾
—

4,486

(12,815)
Comparable Hotel Adjusted EBITDA
152,098

38,112

140,285






Hotel Adjusted EBITDA Margin
31.90 %

12.75 %

31.35 %
Comparable Hotel Adjusted EBITDA Margin
31.91 %

16.28 %

30.07 %

⁽¹⁾

⁽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 as the hotel opened in April 2021 .


Quarter 1, 2019
Quarter 2, 2019
Quarter 3, 2019
Quarter 4, 2019
Full Year 2019
ADR
223.66
252.68
239.39
242.68
240.10
Occupancy
72.2 %
82.4 %
81.2 %
75.2 %
77.8 %
RevPAR
161.44
208.24
194.40
182.52
186.73
Total RevPAR
242.88
302.81
274.93
265.26
271.55
Revenues (in thousands)
206,370
260,227
238,977
230,571
936,145
Hotel Adjusted EBITDA (in thousands)
50,975
89,310
72,411
65,196
277,892
Hotel Adjusted EBITDA Margin
24.70 %
34.32 %
30.30 %
28.28 %
29.68 %
Available Rooms
849,674
859,374
869,216
869,216
3,447,480


Quarter 1, 2021
Quarter 2, 2021
Quarter 3, 2021
Quarter 4, 2021
Full Year 2021
ADR
236.48
241.35
249.83
265.54
250.62
Occupancy
29.6 %
49.3 %
65.4 %
61.2 %
51.5 %
RevPAR
70.08
119.00
163.45
162.47
129.10
Total RevPAR
101.74
171.53
228.71
233.25
184.30
Revenues (in thousands)
86,534
147,537
198,885
202,826
635,782
Hotel Adjusted EBITDA (in thousands)
2,156
35,956
53,472
45,017
136,601
Hotel Adjusted EBITDA Margin
2.49 %
24.37 %
26.89 %
22.19 %
21.49 %
Available Rooms
850,500
860,103
869,584
869,584
3,449,771


Quarter 1, 2022
Quarter 2, 2022
ADR
279.09
297.36
Occupancy
55.8 %
74.9 %
RevPAR
155.76
222.70
Total RevPAR
231.84
324.68
Revenues (in thousands)
197,263
279,445
Hotel Adjusted EBITDA (in thousands)
51,121
100,978
Hotel Adjusted EBITDA Margin
25.92 %
36.14 %
Available Rooms
850,842
860,683

Market Capitalization as of June 30, 2022
(in thousands)
Enterprise Value





Common equity capitalization (at June 30, 2022 closing price of $8.21/share)

1,765,099
Preferred equity capitalization (at liquidation value of $25.00/share)

119,000
Consolidated debt (face amount)

1,172,661
Cash and cash equivalents

(71,713)
Total enterprise value

2,985,047
Share Reconciliation





Common shares outstanding

210,923
Operating partnership units

768
Unvested restricted stock held by management and employees

1,353
Share grants under deferred compensation plan

1,950
Combined shares and units

214,994

Debt Summary as of June 30, 2022

(dollars in thousands)

Loan

Interest Rate as of
June 30, 2022

Term

Outstanding
Principal

Maturity

Salt Lake City Marriott Downtown at City Creek

LIBOR + 3.25 ⁽¹⁾

Variable

42,670

January 2023

Westin Washington D.C. City Center

3.99 %

Fixed

54,690

January 2023

The Lodge at Sonoma Resort

3.96 %

Fixed

25,228

April 2023

Westin San Diego Bayview

3.94 %

Fixed

57,741

April 2023

Courtyard New York Manhattan / Midtown East

4.40 %

Fixed

77,023

August 2024

Worthington Renaissance Fort Worth Hotel

3.66 %

Fixed

76,543

May 2025

Hotel Clio

4.33 %

Fixed

58,133

July 2025

Westin Boston Seaport District

4.36 %

Fixed

180,633

November 2025

Unamortized debt issuance costs

(1,469)

Total mortgage and other debt, net of unamortized
debt issuance costs

571,192

Unsecured term loan

LIBOR + 2.40% ⁽²⁾

Variable

350,000

July 2024

Unsecured term loan

LIBOR + 2.40% ⁽³⁾

Fixed

50,000

October 2023

Unamortized debt issuance costs

(1,178)

Unsecured term loans, net of unamortized debt
issuance costs

398,822

Senior unsecured credit facility

LIBOR + 2.55% ⁽⁴⁾

Variable

200,000

July 2023 ⁽⁵⁾

Total debt, net of unamortized debt issuance costs

1,170,014

Weighted-average interest rate of fixed rate debt

4.25 %

Total weighted-average interest rate

4.20 %

⁽¹⁾

LIBOR is subject to a floor of 1.0%.

⁽²⁾

The Company entered into an interest rate swap agreement in July 2019 to fix LIBOR at 1.70% for $175 million of the term loan through July 2024. LIBOR is subject to a floor of 0.25%.

⁽³⁾

The Company entered into an interest rate swap agreement in January 2019 to fix LIBOR at 2.41% through October 2023.

⁽⁴⁾

LIBOR is subject to a floor of 0.25%.

⁽⁵⁾

May be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions.


Monthly Operating Statistics ⁽¹⁾

Number of Rooms
ADR

Occupancy

RevPAR

April 2022
April 2021
B/(W) 2021

April 2022
April 2021
B/(W) 2021

April 2022
April 2021
B/(W) 2021













Total - 33 Hotels
9,454
291.71
249.38
17.0 %

72.4 %
39.9 %
32.5 %

211.29
99.49
112.4 %













Resorts - 16 Hotels
2,791
436.92
376.83
15.9 %

74.6 %
61.9 %
12.7 %

325.89
233.07
39.8 %


Number of Rooms
April 2022
April 2019
B/(W) 2019

April 2022
April 2019
B/(W) 2019

April 2022
April 2019
B/(W) 2019













Total - 33 Hotels
9,454
291.71
248.26
17.5 %

72.4 %
81.2 %
(8.8) %

211.29
201.71
4.7 %













Resorts - 16 Hotels
2,791
436.92
293.19
49.0 %

74.6 %
76.4 %
(1.8) %

325.89
224.11
45.4 %


Number of Rooms
May 2022
May 2021
B/(W) 2021

May 2022
May 2021
B/(W) 2021

May 2022
May 2021
B/(W) 2021


























Total - 33 Hotels
9,454
297.08
238.23
24.7 %

72.9 %
48.2 %
24.7 %

216.62
114.94
88.5 %













Resorts - 16 Hotels
2,791
408.99
383.11
6.8 %

71.4 %
60.3 %
11.1 %

291.87
230.87
26.4 %


Number of Rooms
May 2022
May 2019
B/(W) 2019

May 2022
May 2019
B/(W) 2019

May 2022
May 2019
B/(W) 2019


























Total - 33 Hotels
9,454
297.08
255.97
16.1 %

72.9 %
80.3 %
(7.4) %

216.62
205.60
5.4 %













Resorts - 16 Hotels
2,791
408.99
277.22
47.5 %

71.4 %
73.6 %
(2.2) %

291.87
203.97
43.1 %


Number of Rooms
June 2022
June 2021
B/(W) 2021

June 2022
June 2021
B/(W) 2021

June 2022
June 2021
B/(W) 2021


























Total - 33 Hotels
9,471
302.78
238.59
26.9 %

79.4 %
59.8 %
19.6 %

240.37
142.71
68.4 %













Resorts - 16 Hotels
2,808
395.39
371.28
6.5 %

75.6 %
70.9 %
4.7 %

298.82
263.24
13.5 %


Number of Rooms
June 2022
June 2019
B/(W) 2019

June 2022
June 2019
B/(W) 2019

June 2022
June 2019
B/(W) 2019


























Total - 33 Hotels
9,471
302.78
253.70
19.3 %

79.4 %
85.7 %
(6.3) %

240.37
217.49
10.5 %













Resorts - 16 Hotels
2,808
395.39
259.73
52.2 %

75.6 %
81.1 %
(5.5) %

298.82
210.61
41.9 %

⁽¹⁾

All periods presented include the pre-acquisition operating results of hotels acquired in 2021 and 2022 and excludes hotels sold in 2021 and the Kimpton Fort Lauderdale Beach Resort as the hotel opened during 2021.


Operating Statistics – Second Quarter

Number of Rooms
ADR

Occupancy

RevPAR

2Q 2022
2Q 2021
B/(W) 2021

2Q 2022
2Q 2021
B/(W) 2021

2Q 2022
2Q 2021
B/(W) 2021


























Atlanta Marriott Alpharetta
318
152.51
102.97
48.1 %

62.0 %
49.4 %
12.6 %

94.58
50.82
86.1 %
Bourbon Orleans Hotel
220
254.65
189.16
34.6 %

65.8 %
17.9 %
47.9 %

167.61
33.87
394.9 %
Cavallo Point, The Lodge at the Golden Gate
142
729.78
590.31
23.6 %

59.5 %
45.5 %
14.0 %

434.41
268.80
61.6 %
Chicago Marriott Downtown Magnificent Mile
1,200
258.98
167.94
54.2 %

60.9 %
20.1 %
40.8 %

157.74
33.75
367.4 %
Courtyard Denver Downtown
177
223.78
130.97
70.9 %

82.2 %
65.5 %
16.7 %

183.96
85.82
114.4 %
Courtyard New York Manhattan/Fifth Avenue
189
291.51
155.79
87.1 %

96.1 %
27.3 %
68.8 %

280.01
42.59
557.5 %
Courtyard New York Manhattan/Midtown East
321
330.68
159.76
107.0 %

89.2 %
81.7 %
7.5 %

294.94
130.51
126.0 %
Embassy Suites by Hilton Bethesda
272
160.43
106.48
50.7 %

62.9 %
32.0 %
30.9 %

100.86
34.07
196.0 %
Havana Cabana Key West
106
330.95
300.11
10.3 %

90.2 %
97.0 %
(6.8) %

298.59
291.21
2.5 %
Henderson Beach Resort
233
528.34
467.86
12.9 %

87.2 %
86.4 %
0.8 %

460.58
404.02
14.0 %
Henderson Park Inn
37
732.17
492.83
48.6 %

90.9 %
98.2 %
(7.3) %

665.62
484.19
37.5 %
Hilton Boston Downtown/Faneuil Hall
403
330.88
161.64
104.7 %

85.4 %
54.5 %
30.9 %

282.69
88.05
221.1 %
Hilton Burlington Lake Champlain
258
233.43
190.76
22.4 %

76.7 %
61.7 %
15.0 %

178.98
117.78
52.0 %
Hilton Garden Inn New York/Times Square Central
282
284.89
149.79
90.2 %

98.0 %
42.1 %
55.9 %

279.23
63.11
342.4 %
Hotel Clio
199
318.95
248.86
28.2 %

69.8 %
68.4 %
1.4 %

222.73
170.32
30.8 %
Hotel Emblem San Francisco
96
236.51
145.08
63.0 %

85.7 %
37.8 %
47.9 %

202.78
54.77
270.2 %
Hotel Palomar Phoenix
242
218.59
158.11
38.3 %

65.3 %
60.6 %
4.7 %

142.83
95.78
49.1 %
Kimpton Fort Lauderdale Beach Resort
96
236.33
213.74
10.6 %

65.3 %
38.2 %
27.1 %

154.33
81.55
89.2 %
Kimpton Shorebreak Resort
157
356.28
302.65
17.7 %

85.2 %
74.4 %
10.8 %

303.51
225.22
34.8 %
L'Auberge de Sedona
88
1,068.06
997.93
7.0 %

80.5 %
89.0 %
(8.5) %

859.86
888.40
(3.2) %
Margaritaville Beach House Key West
186
450.34
416.33
8.2 %

87.0 %
96.1 %
(9.1) %

391.96
400.05
(2.0) %
Orchards Inn Sedona
70
354.54
334.13
6.1 %

70.0 %
81.4 %
(11.4) %

248.13
271.81
(8.7) %
Renaissance Charleston Historic District Hotel
167
412.06
328.57
25.4 %

94.1 %
90.5 %
3.6 %

387.87
297.43
30.4 %
Salt Lake City Marriott Downtown at City Creek
510
181.35
131.56
37.8 %

63.4 %
42.8 %
20.6 %

114.99
56.29
104.3 %
The Gwen Hotel
311
324.50
232.02
39.9 %

80.1 %
50.9 %
29.2 %

259.81
118.16
119.9 %
The Hythe Vail
344
240.14
237.42
1.1 %

38.4 %
18.7 %
19.7 %

92.28
44.34
108.1 %
The Landing Lake Tahoe Resort & Spa
82
451.54
437.62
3.2 %

48.7 %
58.6 %
(9.9) %

219.78
256.64
(14.4) %
The Lodge at Sonoma Resort
182
490.14
314.26
56.0 %

71.3 %
69.9 %
1.4 %

349.50
219.71
59.1 %
Tranquility Bay Beachfront Resort
103
784.22
617.36
27.0 %

81.7 %
90.1 %
(8.4) %

640.73
556.24
15.2 %
Westin Boston Waterfront
793
255.07
153.88
65.8 %

85.9 %
36.4 %
49.5 %

219.10
55.94
291.7 %
Westin Fort Lauderdale Beach Resort
433
262.17
253.42
3.5 %

82.3 %
67.0 %
15.3 %

215.70
169.80
27.0 %
Westin San Diego Bayview
436
208.76
141.23
47.8 %

81.5 %
57.1 %
24.4 %

170.19
80.58
111.2 %
Westin Washington D.C. City Center
410
237.11
127.66
85.7 %

79.6 %
24.4 %
55.2 %

188.68
31.21
504.5 %
Worthington Renaissance Fort Worth Hotel
504
188.25
159.15
18.3 %

73.9 %
55.8 %
18.1 %

139.06
88.74
56.7 %
Comparable Total ⁽¹⁾
9,471
297.36
241.35
23.2 %

74.9 %
49.3 %
25.6 %

222.70
119.00
87.1 %

⁽¹⁾

Amounts include the pre-acquisition operating results of hotels acquired in 2021 and 2022 and excludes hotels sold in 2021 and the Kimpton Fort Lauderdale Beach Resort as the hotel opened during 2021.


Operating Statistics – Second Quarter

Number of Rooms
ADR

Occupancy

RevPAR

2Q 2022
2Q 2019
B/(W) 2019

2Q 2022
2Q 2019
B/(W) 2019

2Q 2022
2Q 2019
B/(W) 2019


























Atlanta Marriott Alpharetta
318
152.51
160.44
(4.9) %

62.0 %
74.8 %
(12.8) %

94.58
119.97
(21.2) %
Bourbon Orleans Hotel
220
254.65
218.43
16.6 %

65.8 %
90.8 %
(25.0) %

167.61
198.25
(15.5) %
Cavallo Point, The Lodge at the Golden Gate
142
729.78
467.43
56.1 %

59.5 %
64.0 %
(4.5) %

434.41
299.11
45.2 %
Chicago Marriott Downtown Magnificent Mile
1,200
258.98
253.76
2.1 %

60.9 %
83.6 %
(22.7) %

157.74
212.22
(25.7) %
Courtyard Denver Downtown
177
223.78
207.53
7.8 %

82.2 %
83.8 %
(1.6) %

183.96
173.87
5.8 %
Courtyard New York Manhattan/Fifth Avenue
189
291.51
270.86
7.6 %

96.1 %
90.9 %
5.2 %

280.01
246.20
13.7 %
Courtyard New York Manhattan/Midtown East
321
330.68
274.26
20.6 %

89.2 %
97.3 %
(8.1) %

294.94
266.76
10.6 %
Embassy Suites by Hilton Bethesda
272
160.43
188.39
(14.8) %

62.9 %
83.3 %
(20.4) %

100.86
156.97
(35.7) %
Havana Cabana Key West
106
330.95
202.86
63.1 %

90.2 %
90.4 %
(0.2) %

298.59
183.30
62.9 %
Henderson Beach Resort
233
528.34
332.50
58.9 %

87.2 %
75.1 %
12.1 %

460.58
249.74
84.4 %
Henderson Park Inn
37
732.17
515.16
42.1 %

90.9 %
90.8 %
0.1 %

665.62
467.58
42.4 %
Hilton Boston Downtown/Faneuil Hall
403
330.88
375.21
(11.8) %

85.4 %
90.5 %
(5.1) %

282.69
339.67
(16.8) %
Hilton Burlington Lake Champlain
258
233.43
191.05
22.2 %

76.7 %
84.0 %
(7.3) %

178.98
160.56
11.5 %
Hilton Garden Inn New York/Times Square Central
282
284.89
275.97
3.2 %

98.0 %
98.7 %
(0.7) %

279.23
272.38
2.5 %
Hotel Clio
199
318.95
265.01
20.4 %

69.8 %
79.2 %
(9.4) %

222.73
209.77
6.2 %
Hotel Emblem San Francisco
96
236.51
227.87
3.8 %

85.7 %
87.1 %
(1.4) %

202.78
198.47
2.2 %
Hotel Palomar Phoenix
242
218.59
174.16
25.5 %

65.3 %
86.5 %
(21.2) %

142.83
150.69
(5.2) %
Kimpton Shorebreak Resort
157
356.28
258.74
37.7 %

85.2 %
78.9 %
6.3 %

303.51
204.07
48.7 %
L'Auberge de Sedona
88
1,068.06
669.18
59.6 %

80.5 %
83.8 %
(3.3) %

859.86
560.63
53.4 %
Margaritaville Beach House Key West
186
450.34
244.49
84.2 %

87.0 %
86.4 %
0.6 %

391.96
211.26
85.5 %
Orchards Inn Sedona
70
354.54
267.91
32.3 %

70.0 %
85.0 %
(15.0) %

248.13
227.70
9.0 %
Renaissance Charleston Historic District Hotel
167
412.06
301.89
36.5 %

94.1 %
90.3 %
3.8 %

387.87
272.57
42.3 %
Salt Lake City Marriott Downtown at City Creek
510
181.35
167.09
8.5 %

63.4 %
72.8 %
(9.4) %

114.99
121.65
(5.5) %
The Gwen Hotel
311
324.50
285.70
13.6 %

80.1 %
87.9 %
(7.8) %

259.81
251.18
3.4 %
The Hythe Vail
344
240.14
174.07
38.0 %

38.4 %
44.3 %
(5.9) %

92.28
77.08
19.7 %
The Landing Lake Tahoe Resort & Spa
82
451.54
270.62
66.9 %

48.7 %
55.1 %
(6.4) %

219.78
149.15
47.4 %
The Lodge at Sonoma Resort
182
490.14
327.39
49.7 %

71.3 %
77.4 %
(6.1) %

349.50
253.52
37.9 %
Tranquility Bay Beachfront Resort
103
784.22
420.16
86.6 %

81.7 %
90.2 %
(8.5) %

640.73
379.06
69.0 %
Westin Boston Waterfront
793
255.07
278.41
(8.4) %

85.9 %
85.0 %
0.9 %

219.10
236.51
(7.4) %
Westin Fort Lauderdale Beach Resort
433
262.17
198.53
32.1 %

82.3 %
80.7 %
1.6 %

215.70
160.28
34.6 %
Westin San Diego Bayview
436
208.76
199.95
4.4 %

81.5 %
82.5 %
(1.0) %

170.19
164.92
3.2 %
Westin Washington D.C. City Center
410
237.11
239.48
(1.0) %

79.6 %
92.4 %
(12.8) %

188.68
221.35
(14.8) %
Worthington Renaissance Fort Worth Hotel
504
188.25
192.06
(2.0) %

73.9 %
77.5 %
(3.6) %

139.06
148.88
(6.6) %
Comparable Total ⁽¹⁾
9,471
297.36
252.68
17.7 %

74.9 %
82.4 %
(7.5) %

222.70
208.24
6.9 %

⁽¹⁾


Operating Statistics – Year to Date

Number of Rooms
ADR

Occupancy

RevPAR

YTD 2022
YTD 2021
B/(W) 2021

YTD 2022
YTD 2021
B/(W) 2021

YTD 2022
YTD 2021
B/(W) 2021


























Atlanta Marriott Alpharetta
318
148.27
100.26
47.9 %

51.9 %
36.2 %
15.7 %

76.90
36.30
111.8 %
Bourbon Orleans Hotel
220
250.51
188.52
32.9 %

57.8 %
9.0 %
48.8 %

144.75
16.97
753.0 %
Cavallo Point, The Lodge at the Golden Gate
142
709.90
577.59
22.9 %

52.1 %
32.5 %
19.6 %

370.03
187.76
97.1 %
Chicago Marriott Downtown Magnificent Mile
1,200
231.16
167.72
37.8 %

44.2 %
10.2 %
34.0 %

102.24
17.14
496.5 %
Courtyard Denver Downtown
177
193.32
118.06
63.7 %

71.2 %
50.7 %
20.5 %

137.56
59.86
129.8 %
Courtyard New York Manhattan/Fifth Avenue
189
231.54
155.79
48.6 %

89.5 %
13.7 %
75.8 %

207.26
21.41
868.1 %
Courtyard New York Manhattan/Midtown East
321
276.54
144.74
91.1 %

76.5 %
74.4 %
2.1 %

211.45
107.65
96.4 %
Embassy Suites by Hilton Bethesda
272
146.62
106.15
38.1 %

44.7 %
25.3 %
19.4 %

65.61
26.82
144.6 %
Havana Cabana Key West
106
371.86
281.56
32.1 %

92.0 %
93.9 %
(1.9) %

342.09
264.50
29.3 %
Henderson Park Resort
233
489.67
420.39
16.5 %

66.0 %
66.0 %
— %

323.42
277.28
16.6 %
Henderson Park Inn
37
644.64
412.80
56.2 %

75.9 %
86.0 %
(10.1) %

488.99
354.92
37.8 %
Hilton Boston Downtown/Faneuil Hall
403
264.87
146.29
81.1 %

74.3 %
37.9 %
36.4 %

196.80
55.51
254.5 %
Hilton Burlington Lake Champlain
258
200.81
164.69
21.9 %

67.7 %
47.3 %
20.4 %

135.88
77.93
74.4 %
Hilton Garden Inn New York/Times Square Central
282
231.05
149.79
54.2 %

88.0 %
21.2 %
66.8 %

203.24
31.73
540.5 %
Hotel Clio
199
290.80
231.47
25.6 %

66.2 %
54.0 %
12.2 %

192.37
124.97
53.9 %
Hotel Emblem San Francisco
96
217.86
140.33
55.2 %

69.9 %
26.5 %
43.4 %

152.22
37.24
308.8 %
Hotel Palomar Phoenix
242
234.31
153.56
52.6 %

71.1 %
55.2 %
15.9 %

166.48
84.76
96.4 %
Kimpton Fort Lauderdale Beach Resort ⁽¹⁾
96
236.33
213.74
10.6 %

65.3 %
38.2 %
27.1 %

154.33
81.55
89.2 %
Kimpton Shorebreak Resort
157
329.33
276.07
19.3 %

78.5 %
59.0 %
19.5 %

258.69
162.80
58.9 %
L'Auberge de Sedona
88
1,058.04
864.93
22.3 %

74.5 %
84.9 %
(10.4) %

788.48
734.44
7.4 %
Margaritaville Beach House Key West
186
516.31
384.54
34.3 %

89.5 %
89.7 %
(0.2) %

462.06
345.05
33.9 %
Orchards Inn Sedona
70
333.07
299.29
11.3 %

66.9 %
71.8 %
(4.9) %

222.66
215.03
3.5 %
Renaissance Charleston Historic District Hotel
167
366.12
285.01
28.5 %

87.3 %
73.8 %
13.5 %

319.49
210.26
51.9 %
Salt Lake City Marriott Downtown at City Creek
510
179.07
121.90
46.9 %

56.2 %
36.7 %
19.5 %

100.68
44.71
125.2 %
The Gwen Hotel
311
277.93
219.19
26.8 %

69.2 %
37.3 %
31.9 %

192.33
81.70
135.4 %
The Hythe Vail
344
508.11
345.38
47.1 %

52.7 %
46.0 %
6.7 %

267.53
158.90
68.4 %
The Landing Lake Tahoe Resort & Spa
82
430.83
392.31
9.8 %

47.6 %
54.1 %
(6.5) %

204.96
212.25
(3.4) %
The Lodge at Sonoma Resort
182
440.93
286.64
53.8 %

59.7 %
48.9 %
10.8 %

263.38
140.21
87.8 %
Tranquility Bay Beachfront Resort ⁽²⁾
103
863.99
648.05
33.3 %

82.5 %
89.8 %
(7.3) %

712.57
582.20
22.4 %
Westin Boston Waterfront
793
231.75
143.95
61.0 %

69.9 %
25.7 %
44.2 %

162.00
37.03
337.5 %
Westin Fort Lauderdale Beach Resort
433
300.54
254.22
18.2 %

85.0 %
61.5 %
23.5 %

255.32
156.34
63.3 %
Westin San Diego Bayview
436
195.54
141.30
38.4 %

67.4 %
39.6 %
27.8 %

131.71
55.96
135.4 %
Westin Washington D.C. City Center
410
218.49
133.76
63.3 %

57.5 %
16.7 %
40.8 %

125.70
22.27
464.4 %
Worthington Renaissance Fort Worth Hotel
504
191.00
150.46
26.9 %

69.1 %
45.4 %
23.7 %

132.02
68.26
93.4 %
Comparable Total ⁽³⁾
9,471
289.60
239.53
20.9 %

65.4 %
39.5 %
25.9 %

189.43
94.68
100.1 %

⁽¹⁾

Hotel was acquired on April 1, 2022. Amounts reflect the operating results for the period from April 1, 2022 to June 30, 2022 and April 1, 2021 to June 30, 2021.

⁽²⁾

Hotel was acquired on January 6, 2022. Amounts reflect the operating results for the period from January 6, 2022 to June 30, 2022 and January 6, 2021 to June 30, 2021.

⁽³⁾


Operating Statistics – Year to Date

Number of Rooms
ADR

Occupancy

RevPAR

YTD 2022
YTD 2019
B/(W) 2019

YTD 2022
YTD 2019
B/(W) 2019

YTD 2022
YTD 2019
B/(W) 2019


























Atlanta Marriott Alpharetta
318
148.27
168.59
(12.1) %

51.9 %
72.6 %
(20.7) %

76.90
122.44
(37.2) %
Bourbon Orleans Hotel
220
250.51
227.80
10.0 %

57.8 %
86.6 %
(28.8) %

144.75
197.32
(26.6) %
Cavallo Point, The Lodge at the Golden Gate
142
709.90
452.75
56.8 %

52.1 %
63.7 %
(11.6) %

370.03
288.31
28.3 %
Chicago Marriott Downtown Magnificent Mile
1,200
231.16
217.58
6.2 %

44.2 %
67.7 %
(23.5) %

102.24
147.36
(30.6) %
Courtyard Denver Downtown
177
193.32
191.01
1.2 %

71.2 %
78.6 %
(7.4) %

137.56
150.07
(8.3) %
Courtyard New York Manhattan/Fifth Avenue
189
231.54
244.03
(5.1) %

89.5 %
84.2 %
5.3 %

207.26
205.48
0.9 %
Courtyard New York Manhattan/Midtown East
321
276.54
233.54
18.4 %

76.5 %
94.7 %
(18.2) %

211.45
221.06
(4.3) %
Embassy Suites by Hilton Bethesda
272
146.62
181.32
(19.1) %

44.7 %
74.4 %
(29.7) %

65.61
134.84
(51.3) %
Havana Cabana Key West
106
371.86
229.10
62.3 %

92.0 %
92.5 %
(0.5) %

342.09
211.96
61.4 %
Henderson Beach Resort
233
489.67
305.54
60.3 %

66.0 %
57.2 %
8.8 %

323.42
174.65
85.2 %
Henderson Park Inn
37
644.64
455.46
41.5 %

75.9 %
71.6 %
4.3 %

488.99
326.31
49.9 %
Hilton Boston Downtown/Faneuil Hall
403
264.87
290.58
(8.8) %

74.3 %
87.0 %
(12.7) %

196.80
252.94
(22.2) %
Hilton Burlington Lake Champlain
258
200.81
163.67
22.7 %

67.7 %
77.4 %
(9.7) %

135.88
126.66
7.3 %
Hilton Garden Inn New York/Times Square Central
282
231.05
228.97
0.9 %

88.0 %
98.4 %
(10.4) %

203.24
225.19
(9.7) %
Hotel Clio
199
290.80
256.26
13.5 %

66.2 %
63.1 %
3.1 %

192.37
161.57
19.1 %
Hotel Emblem San Francisco
96
217.86
235.46
(7.5) %

69.9 %
72.4 %
(2.5) %

152.22
170.45
(10.7) %
Hotel Palomar Phoenix
242
234.31
203.74
15.0 %

71.1 %
87.4 %
(16.3) %

166.48
178.02
(6.5) %
Kimpton Shorebreak Resort
157
329.33
248.09
32.7 %

78.5 %
77.1 %
1.4 %

258.69
191.22
35.3 %
L'Auberge de Sedona
88
1,058.04
623.67
69.6 %

74.5 %
82.1 %
(7.6) %

788.48
512.04
54.0 %
Margaritaville Beach House Key West
186
516.31
278.48
85.4 %

89.5 %
90.2 %
(0.7) %

462.06
251.22
83.9 %
Orchards Inn Sedona
70
333.07
262.04
27.1 %

66.9 %
79.5 %
(12.6) %

222.66
208.25
6.9 %
Renaissance Charleston Historic District Hotel
167
366.12
270.69
35.3 %

87.3 %
87.1 %
0.2 %

319.49
235.71
35.5 %
Salt Lake City Marriott Downtown at City Creek
510
179.07
170.00
5.3 %

56.2 %
66.0 %
(9.8) %

100.68
112.24
(10.3) %
The Gwen Hotel
311
277.93
242.95
14.4 %

69.2 %
79.2 %
(10.0) %

192.33
192.44
(0.1) %
The Hythe Vail
344
508.11
346.67
46.6 %

52.7 %
63.2 %
(10.5) %

267.53
219.14
22.1 %
The Landing Lake Tahoe Resort & Spa
82
430.83
273.14
57.7 %

47.6 %
54.1 %
(6.5) %

204.96
147.69
38.8 %
The Lodge at Sonoma Resort
182
440.93
286.18
54.1 %

59.7 %
69.5 %
(9.8) %

263.38
198.88
32.4 %
Tranquility Bay Beachfront Resort ⁽¹⁾
103
863.99
458.69
88.4 %

82.5 %
90.9 %
(8.4) %

712.57
416.90
70.9 %
Westin Boston Waterfront
793
231.75
245.47
(5.6) %

69.9 %
75.3 %
(5.4) %

162.00
184.74
(12.3) %
Westin Fort Lauderdale Beach Resort
433
300.54
228.58
31.5 %

85.0 %
88.1 %
(3.1) %

255.32
201.29
26.8 %
Westin San Diego Bayview
436
195.54
195.09
0.2 %

67.4 %
80.0 %
(12.6) %

131.71
156.11
(15.6) %
Westin Washington D.C. City Center
410
218.49
222.10
(1.6) %

57.5 %
85.0 %
(27.5) %

125.70
188.80
(33.4) %
Worthington Renaissance Fort Worth Hotel
504
191.00
190.08
0.5 %

69.1 %
78.5 %
(9.4) %

132.02
149.15
(11.5) %













Comparable Total ⁽²⁾
9,471
289.60
239.21
21.1 %

65.4 %
77.3 %
(11.9) %

189.43
184.97
2.4 %

⁽¹⁾

Hotel was acquired on January 6, 2022. Amounts reflect the operating results for the period from January 6, 2022 to June 30, 2022 and January 6, 2019 to June 30, 2019.

⁽²⁾



Hotel Adjusted EBITDA Reconciliation - Second Quarter 2022






Days of Operation


Net Income / (Loss)
Plus:
Plus:
Plus:
Equals: Hotel Adjusted EBITDA


Total Revenues

Depreciation
Interest Expense
Adjustments ⁽¹⁾
Atlanta Marriott Alpharetta

91
3,786

888
373
—
—
1,261
Bourbon Orleans Hotel

91
4,215

1,135
828
—
6
1,969
Cavallo Point, The Lodge at the Golden Gate

91
13,395

2,872
1,865
—
94
4,831
Chicago Marriott Downtown Magnificent Mile

91
27,279

8,367
3,855
6
(397)
11,831
Courtyard Denver Downtown

91
3,272

1,338
376
—
—
1,714
Courtyard New York Manhattan/Fifth Avenue

91
4,887

544
331
—
253
1,128
Courtyard New York Manhattan/Midtown East

91
8,877

1,708
487
910
—
3,105
Embassy Suites by Hilton Bethesda

91
2,915

(1,811)
561
—
1,481
231
Havana Cabana Key West

91
3,790

1,336
271
—
—
1,607
Henderson Beach Resort

91
15,388

3,502
970
—
—
4,472
Henderson Park Inn

91
3,060

1,334
223
—
—
1,557
Hilton Boston Downtown/Faneuil Hall

91
11,310

3,756
1,016
—
—
4,772
Hilton Burlington Lake Champlain

91
5,495

1,465
563
—
—
2,028
Hilton Garden Inn New York/Times Square Central

91
7,733

2,056
625
—
—
2,681
Hotel Clio

91
6,971

291
851
647
5
1,794
Hotel Emblem San Francisco

91
2,158

230
294
—
—
524
Hotel Palomar Phoenix

91
5,343

722
672
—
181
1,575
Kimpton Fort Lauderdale Beach Resort

91
1,962

39
314
—
—
353
Kimpton Shorebreak Resort

91
6,381

2,240
402
—
—
2,642
L'Auberge de Sedona

91
10,198

4,064
356
—
—
4,420
Margaritaville Beach House Key West

91
8,741

3,521
786
—
—
4,307
Orchards Inn Sedona

91
2,783

1,107
85
—
42
1,234
Renaissance Charleston Historic District Hotel

91
7,178

2,997
462
—
—
3,459
Salt Lake City Marriott Downtown at City Creek

91
6,786

1,402
564
479
11
2,456
The Gwen Hotel

91
11,136

3,737
1,070
—
—
4,807
The Hythe Vail

91
5,263

(1,684)
1,203
—
—
(481)
The Landing Lake Tahoe Resort & Spa

91
2,763

556
217
—
—
773
The Lodge at Sonoma Resort

91
9,333

2,466
632
261
—
3,359
Tranquility Bay Beachfront Resort

91
7,173

1,737
732
—
—
2,469
Westin Boston Seaport District

91
25,423

3,823
2,442
2,037
(122)
8,180
Westin Fort Lauderdale Beach Resort

91
18,282

5,295
982
—
—
6,277
Westin San Diego Bayview

91
8,557

2,009
836
585
—
3,430
Westin Washington D.C. City Center

91
8,879

1,427
1,034
592
—
3,053
Worthington Renaissance Fort Worth Hotel

91
10,695

1,668
1,111
732
2
3,513
Total


281,407

66,137
27,389
6,249
1,556
101,331
Less: Non Comparable Hotel ⁽²⁾


(1,962)

(39)
(314)
—
—
(353)
Comparable Total


279,445

66,098
27,075
6,249
1,556
100,978

⁽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 favorable and unfavorable contract liabilities.

⁽²⁾

Represents the operating results of the Kimpton Fort Lauderdale Beach Resort since the hotel opened during 2021.



Hotel Adjusted EBITDA Reconciliation - Second Quarter 2021


Days of Operation


Net Income / (Loss)
Plus:
Plus:
Plus:
Equals: Hotel


Total Revenues

Depreciation
Interest Expense
Adjustments ⁽¹⁾
Adjusted EBITDA
Atlanta Marriott Alpharetta

91
1,769

(82)
347
—
—
265
Cavallo Point, The Lodge at the Golden Gate

91
7,346

919
1,838
—
94
2,851
Chicago Marriott Downtown Magnificent Mile

77
5,110

(4,466)
4,072
6
(397)
(785)
Courtyard Denver Downtown

91
1,595

199
376
—
—
575
Courtyard New York Manhattan/Fifth Avenue

30
781

(1,554)
329
—
253
(972)
Courtyard New York Manhattan/Midtown East

91
3,863

(1,645)
476
929
—
(240)
Embassy Suites by Hilton Bethesda

91
1,012

(2,439)
515
—
1,494
(430)
Frenchman's Reef & Morning Star Marriott Beach Resort

—
—

—
—
—
—
—
Havana Cabana Key West

91
3,834

1,682
275
—
—
1,957
Hilton Boston Downtown/Faneuil Hall

91
3,816

(796)
1,047
—
—
251
Hilton Burlington Lake Champlain

91
2,988

398
599
—
—
997
Hilton Garden Inn New York/Times Square Central

59
1,634

(1,785)
840
—
—
(945)
Hotel Clio

91
5,003

(66)
779
661
5
1,379
Hotel Emblem San Francisco

91
564

(583)
308
—
—
(275)
Hotel Palomar Phoenix

91
3,533

4
675
—
281
960
Kimpton Shorebreak Resort

91
4,659

1,417
415
—
—
1,832
L'Auberge de Sedona

91
10,122

4,265
369
—
—
4,634
Margaritaville Beach House Key West

91
8,552

4,412
721
—
—
5,133
Orchards Inn Sedona

91
2,779

1,126
82
—
42
1,250
Renaissance Charleston Historic District Hotel

91
5,516

1,967
464
—
—
2,431
Salt Lake City Marriott Downtown at City Creek

91
3,445

(159)
516
518
11
886
The Gwen Hotel

91
5,104

(371)
1,093
—
—
722
The Hythe Vail

91
1,936

(1,619)
1,053
—
—
(566)
The Landing Lake Tahoe Resort & Spa

91
2,918

919
418
—
—
1,337
The Lexington Hotel

—
18

(1,278)
—
7
8
(1,263)
The Lodge at Sonoma Resort

91
5,513

487
463
266
—
1,216
Westin Boston Seaport District

91
6,269

(5,224)
2,532
2,083
(122)
(731)
Westin Fort Lauderdale Beach Resort

91
13,862

3,333
1,091
—
—
4,424
Westin San Diego Bayview

91
3,945

(675)
821
602
—
748
Westin Washington D.C. City Center

91
1,250

(2,491)
1,062
616
—
(813)
Worthington Renaissance Fort Worth Hotel

91
6,055

(963)
1,116
749
2
904
Total


124,791

(5,068)
24,692
6,437
1,671
27,775
Add: Prior Ownership Results ⁽²⁾


22,764

5,179
1,739
—
—
6,918
Less: Sold Hotels ⁽³⁾


(18)

1,278
—
(7)
(8)
1,263
Comparable Total


147,537

1,389
26,431
6,430
1,663
35,956

⁽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 favorable and unfavorable contract 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 - Second Quarter 2019


Days of Operation


Net Income / (Loss)
Plus:
Plus:
Plus:
Equals: Hotel


Total Revenues

Depreciation
Interest Expense
Adjustments ⁽¹⁾
Adjusted EBITDA
Atlanta Marriott Alpharetta

91
4,862

1,188
459
—
—
1,647
Cavallo Point, The Lodge at the Golden Gate

91
10,721

1,268
1,789
—
110
3,167
Chicago Marriott Downtown Magnificent Mile

91
34,590

9,306
4,166
47
(397)
13,122
Courtyard Denver Downtown

91
3,291

1,466
287
—
—
1,753
Courtyard New York Manhattan/Fifth Avenue

91
4,341

283
440
—
253
976
Courtyard New York Manhattan/Midtown East

91
8,048

981
688
964
—
2,633
Embassy Suites by Hilton Bethesda

91
5,234

18
474
—
1,517
2,009
Frenchman's Reef & Morning Star Marriott Beach Resort

—
—

(2)
—
—
—
(2)
Havana Cabana Key West

91
2,438

746
235
—
—
981
Hilton Boston Downtown/Faneuil Hall

91
13,161

4,939
1,233
—
—
6,172
Hilton Burlington Lake Champlain

91
4,993

1,422
515
—
—
1,937
Hilton Garden Inn New York/Times Square Central

91
7,090

1,457
826
—
—
2,283
Hotel Clio

91
5,797

265
688
687
6
1,646
Hotel Emblem San Francisco

91
1,995

180
297
—
—
477
Hotel Palomar Phoenix

91
6,070

668
663
38
295
1,664
Kimpton Shorebreak Resort

91
4,483

1,192
349
—
40
1,581
L'Auberge de Sedona

91
7,668

2,101
508
—
—
2,609
Margaritaville Beach House Key West

91
4,446

1,217
344
—
—
1,561
Orchards Inn Sedona

91
2,414

622
237
—
42
901
Renaissance Charleston Historic District Hotel

91
4,685

1,906
418
—
(32)
2,292
Salt Lake City Marriott Downtown at City Creek

91
7,863

1,695
574
606
—
2,875
The Gwen Hotel

91
9,881

2,332
1,149
—
—
3,481
The Hythe Vail

91
4,485

(1,622)
1,035
—
—
(587)
The Landing Lake Tahoe Resort & Spa

91
1,804

(332)
385
—
—
53
The Lexington Hotel

91
18,275

1,324
3,557
8
8
4,897
The Lodge at Sonoma Resort

91
6,946

1,501
529
280
—
2,310
Westin Boston Seaport District

91
29,239

5,918
2,436
2,169
(60)
10,463
Westin Fort Lauderdale Beach Resort

91
12,614

2,220
1,633
—
—
3,853
Westin San Diego Bayview

91
9,033

1,629
1,136
634
—
3,399
Westin Washington D.C. City Center

91
10,316

2,030
1,317
662
—
4,009
Worthington Renaissance Fort Worth Hotel

91
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⁾


20,584

4,115
1,739
—
—
5,854
Less: Sold Hotels ⁽³⁾


(18,275)

(1,322)
(3,557)
(8)
(8)
(4,895)
Comparable Total


260,227

53,259
27,517
6,867
1,776
89,310

⁽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 favorable and unfavorable contract 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 2022


Days of Operation
Total Revenues

Net Income / (Loss)
Plus: Depreciation
Plus: Interest Expense
Plus: Adjustments ⁽¹⁾
Equals: Hotel Adjusted EBITDA



Atlanta Marriott Alpharetta

181
6,254

1,167
743
—
—
1,910
Bourbon Orleans Hotel

181
7,264

1,210
1,648
—
13
2,871
Cavallo Point, The Lodge at the Golden Gate

181
23,030

3,904
3,691
—
187
7,782
Chicago Marriott Downtown Magnificent Mile

181
35,885

2,165
7,848
11
(795)
9,229
Courtyard Denver Downtown

181
5,005

1,520
752
—
—
2,272
Courtyard New York Manhattan/Fifth Avenue

181
7,237

(631)
661
—
507
537
Courtyard New York Manhattan/Midtown East

181
12,717

(564)
971
1,816
—
2,223
Embassy Suites by Hilton Bethesda

181
3,855

(4,910)
1,114
—
2,972
(824)
Havana Cabana Key West

181
8,405

3,518
554
—
—
4,072
Henderson Beach Resort

181
22,294

2,896
1,923
—
—
4,819
Henderson Park Inn

181
4,437

1,251
438
—
—
1,689
Hilton Boston Downtown/Faneuil Hall

181
16,100

2,719
2,073
—
—
4,792
Hilton Burlington Lake Champlain

181
8,263

1,367
1,124
—
—
2,491
Hilton Garden Inn New York/Times Square Central

181
11,411

1,445
1,245
—
—
2,690
Hotel Clio

181
11,911

(155)
1,652
1,291
10
2,798
Hotel Emblem San Francisco

181
3,232

(243)
594
—
—
351
Hotel Palomar Phoenix

181
11,725

2,529
1,347
—
366
4,242
Kimpton Fort Lauderdale Beach Resort

91
1,962

39
314
—
—
353
Kimpton Shorebreak Resort

181
10,780

3,235
805
—
—
4,040
L'Auberge de Sedona

181
18,393

6,442
749
—
—
7,191
Margaritaville Beach House Key West

181
19,690

8,857
1,592
—
—
10,449
Orchards Inn Sedona

181
5,016

1,698
169
—
84
1,951
Renaissance Charleston Historic District Hotel

181
12,102

4,618
918
—
—
5,536
Salt Lake City Marriott Downtown at City Creek

181
12,684

2,444
1,086
957
21
4,508
The Gwen Hotel

181
16,174

2,053
2,145
—
—
4,198
The Hythe Vail

181
22,996

6,243
2,400
—
—
8,643
The Landing Lake Tahoe Resort & Spa

181
4,939

1,112
575
—
—
1,687
The Lodge at Sonoma Resort

181
14,530

2,369
1,260
521
—
4,150
Tranquility Bay Beachfront Resort

176
15,222

4,611
865
—
—
5,476
Westin Boston Seaport District

181
38,447

(38)
4,898
4,065
(245)
8,680
Westin Fort Lauderdale Beach Resort

181
40,731

15,555
1,974
—
—
17,529
Westin San Diego Bayview

181
13,562

1,698
1,642
1,169
—
4,509
Westin Washington D.C. City Center

181
11,796

44
2,052
1,184
—
3,280
Worthington Renaissance Fort Worth Hotel

181
20,191

2,750
2,222
1,461
4
6,437
Total


478,240

82,918
54,044
12,475
3,124
152,558
Less: Non-Comparable Hotel ⁽²⁾


(1,962)

(39)
(314)
—
—
(353)
Add: Prior Ownership Results ⁽³⁾


430

(117)
10
—
—
(107)
Comparable Total


476,708

82,762
53,740
12,475
3,124
152,098

⁽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 favorable and unfavorable contract liabilities.

⁽²⁾

Represents the operating results of the Kimpton Fort Lauderdale Beach Resort since the hotel opened during 2021.

⁽³⁾

Represents the pre-acquisition operating results of our 2021 and 2022 acquisitions (excluding the Kimpton Fort Lauderdale Beach Resort).



Hotel Adjusted EBITDA Reconciliation - Year to Date 2021


Days of Operation
Total Revenues

Net Income / (Loss)
Plus: Depreciation
Plus: Interest Expense
Plus: Adjustments ⁽¹⁾
Equals: Hotel Adjusted EBITDA
Atlanta Marriott Alpharetta

181
2,532

(734)
695
—
—
(39)
Cavallo Point, The Lodge at the Golden Gate

181
10,224

(812)
3,675
—
187
3,050
Chicago Marriott Downtown Magnificent Mile

79
5,224

(11,802)
8,177
48
(795)
(4,372)
Courtyard Denver Downtown

181
2,286

(263)
759
—
—
496
Courtyard New York Manhattan/Fifth Avenue

30
833

(3,211)
658
—
507
(2,046)
Courtyard New York Manhattan/Midtown East

181
6,328

(4,288)
961
1,853
—
(1,474)
Embassy Suites by Hilton Bethesda

181
1,566

(5,094)
1,038
—
2,996
(1,060)
Frenchman's Reef & Morning Star Marriott Beach Resort

—
—

—
—
—
—
—
Havana Cabana Key West

181
6,952

2,860
541
—
—
3,401
Hilton Boston Downtown/Faneuil Hall

181
4,651

(3,615)
2,142
—
—
(1,473)
Hilton Burlington Lake Champlain

181
3,956

(497)
1,248
—
—
751
Hilton Garden Inn New York/Times Square Central

59
1,633

(4,037)
1,679
—
—
(2,358)
Hotel Clio

181
7,423

(1,576)
1,573
1,318
10
1,325
Hotel Emblem San Francisco

181
772

(1,355)
615
—
—
(740)
Hotel Palomar Phoenix

181
6,075

(509)
1,354
—
568
1,413
Kimpton Shorebreak Resort

181
6,756

1,298
825
—
—
2,123
L'Auberge de Sedona

181
16,600

6,020
912
—
—
6,932
Margaritaville Beach House Key West

181
14,587

6,945
1,432
—
—
8,377
Orchards Inn Sedona

181
4,561

1,604
164
—
84
1,852
Renaissance Charleston Historic District Hotel

181
7,762

2,086
917
—
—
3,003
Salt Lake City Marriott Downtown at City Creek

181
5,563

(1,223)
1,044
1,035
11
867
The Gwen Hotel

181
7,041

(2,516)
2,188
—
—
(328)
The Hythe Vail

181
13,211

3,435
1,954
—
—
5,389
The Landing Lake Tahoe Resort & Spa

181
4,527

1,113
834
—
—
1,947
The Lexington Hotel

—
60

(6,440)
1,925
13
16
(4,486)
The Lodge at Sonoma Resort

181
6,947

(732)
1,008
531
—
807
Westin Boston Seaport District

181
7,632

(13,221)
5,077
4,155
(245)
(4,234)
Westin Fort Lauderdale Beach Resort

181
24,935

5,781
2,154
—
—
7,935
Westin San Diego Bayview

181
5,437

(2,893)
1,666
1,202
—
(25)
Westin Washington D.C. City Center

181
1,807

(5,614)
2,210
1,232
—
(2,172)
Worthington Renaissance Fort Worth Hotel

181
9,847

(3,425)
2,229
1,494
4
302
Total


197,728

(42,715)
51,654
12,881
3,343
25,207
Add: Prior Ownership Results ⁽²⁾


36,402

4,942
3,477
—
—
8,419
Less: Sold Hotels ⁽³⁾


(60)

6,440
(1,925)
(13)
(16)
4,486
Comparable Total


234,070

(31,333)
53,206
12,868
3,327
38,112

⁽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 favorable and unfavorable contract 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 2019












Days of Operation
Total Revenues

Net Income / (Loss)
Plus: Depreciation
Plus: Interest Expense
Plus: Adjustments ⁽¹⁾
Equals: Hotel Adjusted EBITDA
Atlanta Marriott Alpharetta

181
10,172

2,768
934
—
—
3,702
Cavallo Point, The Lodge at the Golden Gate

181
19,967

1,047
3,729
—
142
4,918
Chicago Marriott Downtown Magnificent Mile

181
50,721

5,239
8,295
118
(795)
12,857
Courtyard Denver Downtown

181
5,537

2,014
584
—
—
2,598
Courtyard New York Manhattan/Fifth Avenue

181
7,226

(622)
881
—
507
766
Courtyard New York Manhattan/Midtown East

181
13,303

(640)
1,379
1,922
—
2,661
Embassy Suites by Hilton Bethesda

181
9,171

(954)
951
—
3,042
3,039
Frenchman's Reef & Morning Star Marriott Beach Resort

—
—

8,800
—
—
—
8,800
Havana Cabana Key West

181
5,354

1,949
480
—
—
2,429
Hilton Boston Downtown/Faneuil Hall

181
19,833

4,853
2,477
—
—
7,330
Hilton Burlington Lake Champlain

181
7,910

1,466
1,015
—
—
2,481
Hilton Garden Inn New York/Times Square Central

181
11,714

787
1,671
—
—
2,458
Hotel Clio

181
8,474

(1,213)
1,229
1,370
12
1,398
Hotel Emblem San Francisco

181
3,344

(77)
572
—
—
495
Hotel Palomar Phoenix

181
13,683

2,743
1,329
76
589
4,737
Kimpton Shorebreak Resort

181
8,424

1,778
698
—
81
2,557
L'Auberge de Sedona

181
13,622

2,960
1,017
—
—
3,977
Margaritaville Beach House Key West

181
10,240

3,612
682
—
—
4,294
Orchards Inn Sedona

181
4,292

896
475
—
84
1,455
Renaissance Charleston Historic District Hotel

181
8,168

2,796
821
—
(63)
3,554
Salt Lake City Marriott Downtown at City Creek

181
14,737

2,752
1,104
1,210
—
5,066
The Gwen Hotel

181
14,937

773
2,208
—
—
2,981
The Hythe Vail, a Luxury Collection Resort

181
19,880

4,923
2,025
—
—
6,948
The Landing Lake Tahoe Resort & Spa

181
3,558

(792)
761
—
—
(31)
The Lexington Hotel

181
29,534

(3,098)
7,085
12
16
4,015
The Lodge at Sonoma Resort

181
11,475

1,165
1,064
558
—
2,787
Westin Boston Seaport District

181
46,982

3,873
4,849
4,324
(120)
12,926
Westin Fort Lauderdale Beach Resort

181
30,115

8,172
3,178
—
—
11,350
Westin San Diego Bayview

181
17,679

3,330
2,262
1,264
—
6,856
Westin Washington D.C. City Center

181
17,410

1,795
2,639
1,322
—
5,756
Worthington Renaissance Fort Worth Hotel

181
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⁾


35,841

5,343
3,477
—
—
8,820
Less: Sold Hotels ⁽³⁾


(29,534)

(5,702)
(7,085)
(12)
(16)
(12,815)
Comparable Total


466,600

68,465
54,723
13,719
3,483
140,285

⁽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 favorable and unfavorable contract 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.

SOURCE DiamondRock Hospitality Company

Company Name:	Diamondrock Hospitality Company
Stock Symbol:	DRH
Market:	NYSE
Website:	drhc.com

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