EX-99.1 2 exhibit9912q2020.htm EXHIBIT 99.1 Exhibit

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COMPANY CONTACTS    

Jeff Donnelly
Chief Financial Officer
(240) 744-1190

Briony Quinn
Senior Vice President
(240) 744-1196

FOR IMMEDIATE RELEASE

DIAMONDROCK HOSPITALITY COMPANY REPORTS SECOND QUARTER 2020 RESULTS
BETHESDA, Maryland, Thursday, August 6, 2020 – DiamondRock Hospitality Company (the “Company”) (NYSE: DRH), a lodging-focused real estate investment trust that owns a portfolio of 31 premium hotels in the United States, today announced results of operations for the quarter ended June 30, 2020.
“As we expected, the second quarter was significantly impacted by the dramatic decline in travel demand caused by COVID-19. I want to extend my gratitude to our team for continuing to execute on our action plan and identifying new and efficient ways to operate our hotels. These actions resulted in mitigating our cash burn rate to beat our initial expectations. Additionally, DiamondRock improved its already solid balance sheet by successfully closing on two key agreements with lenders to obtain financial covenant waivers on corporate debt and extend our only mortgage maturity in 2020 to 2022,” said Mark W. Brugger, President and Chief Executive Officer of DiamondRock Hospitality Company. “We eagerly look forward to emerging on the other side of this pandemic and welcoming back customers to our hotels. In the meantime, we will continue to prioritize the health and safety of our employees and guests and take prudent steps to reopen properties as demand improves.”

Second Quarter 2020 Highlights:
•
Hotel Operations: The Company suspended operations at 20 of its 30 previously operating hotels (which excludes Frenchman's Reef) for at least some portion of the second quarter under governmental orders or due to lack of travel demand. The Company reopened 12 hotels during the second quarter as governmental orders were modified or lifted and leisure demand increased. Subsequent to June 30, 2020, the Company reopened three additional hotels and now has 25 of its 30 operating hotels open.
•
Net Loss: Net loss was $73.4 million and loss per diluted share was $0.36.
•
Comparable Revenues: Comparable total revenues decreased 92.1% from the comparable period of 2019.
•
Comparable RevPAR: RevPAR decreased 92.8% from the comparable period of 2019.
•
Adjusted EBITDA: Adjusted EBITDA was ($37.0) million, a decrease of $118.1 million from 2019.
•
Adjusted FFO: Adjusted FFO was ($41.0) million and Adjusted FFO per diluted share was ($0.20).
•
Debt Modifications: The Company successfully completed amendments to the agreements for its $400 million revolving credit facility and $400 million in unsecured term loans, which provided waivers of



financial covenants through the first quarter of 2021. The Company also refinanced its only material near-term debt maturity, the mortgage loan secured by the Salt Lake City Marriott Downtown.
•
Liquidity: As of June 30, 2020, the Company's liquidity was $363.9 million, comprised of $87.8 million of unrestricted corporate cash, $25.1 million of unrestricted cash at its hotels and $251.0 million of capacity on the Company’s revolving credit facility.

Please see “Non-GAAP Financial Measures” attached to this press release for an explanation of the terms “EBITDAre,” “Adjusted EBITDA,” “Hotel Adjusted EBITDA Margin,” “FFO” and “Adjusted FFO” and a reconciliation of these measures to net income. Comparable operating results exclude Frenchman's Reef for all periods presented due to the closure of the hotel. See “Reconciliation of Comparable Operating Results” attached to this press release for a reconciliation to historical amounts.

For the quarter ended June 30, 2020, the Company reported the following:
 
Second Quarter
 
 
2020
 
2019
Change

Comparable Operating Results (1)
 
 
 
 
ADR

$175.74

 

$250.23

(29.8
)%
Occupancy
8.5
 %
 
83.1
%
(74.6
)%
RevPAR

$14.99

 

$208.02

(92.8
)%
Total RevPAR

$23.33

 

$295.39

(92.1
)%
Revenues
$20.4 million

 
$257.9 million

(92.1
)%
Hotel Adjusted EBITDA
($30.4) million

 
$88.3 million

(134.4
)%
Hotel Adjusted EBITDA Margin
(148.99
)%
 
34.26
%
(18,325) basis points

Available Rooms
873,676

 
873,145

531 rooms

 
 
 
 
 
Actual Operating Results
 
 
 
 
Revenues
$20.4 million

 
$257.9 million

(92.1
)%
Net loss/income
($73.4) million

 
$29.1 million

($102.5) million

Loss/Earnings per diluted share

($0.36
)
 

$0.14


($0.50
)
Adjusted EBITDA
($37.0) million

 
$81.1 million

($118.1) million

Adjusted FFO
($41.0) million

 
$65.1 million

($106.1) million

Adjusted FFO per diluted share
($0.20)
 

$0.32


($0.52
)
(1) Comparable operating results exclude Frenchman’s Reef for all periods presented and does not adjust for hotels that have suspended operations.

2


For the six months ended June 30, 2020, the Company reported the following:
 
Year to Date
 
 
2020
 
2019
Change

Comparable Operating Results (1)
 
 
 
 
ADR

$211.29

 

$234.48

(9.9
)%
Occupancy
33.8
 %
 
78.2
%
(44.4
)%
RevPAR

$71.48

 

$183.30

(61.0
)%
Total RevPAR

$108.95

 

$265.08

(58.9
)%
Revenues
$190.4 million

 
$460.3 million

(58.6
)%
Hotel Adjusted EBITDA
($12.5) million

 
$135.5 million

(109.2
)%
Hotel Adjusted EBITDA Margin
(6.59
)%
 
29.43
%
(3,602) basis points

Available Rooms
1,747,276

 
1,736,409

10,867 rooms

 
 
 
 
 
Actual Operating Results
 
 
 
 
Revenues
$190.4 million

 
$460.3 million

(58.6
)%
Net loss/income
($108.1) million

 
$38.1 million

($146.2) million

Loss/Earnings per diluted share

($0.53
)
 

$0.19


($0.72
)
Adjusted EBITDA
($25.2) million

 
$130.2 million

($155.4) million

Adjusted FFO
($32.6) million

 
$107.1 million

($139.7) million

Adjusted FFO per diluted share

($0.16
)
 

$0.53


($0.69
)
(1) Comparable operating results exclude Frenchman’s Reef for all periods presented and does not adjust for hotels that have suspended operations.

COVID-19 Pandemic

In response to the COVID-19 pandemic, the Company has taken the following aggressive actions at the property and corporate levels.

•
In coordination with its hotel operators, the Company suspended operations at 20 of its hotels throughout March and April 2020. The Company reopened 12 hotels during the second quarter. Subsequent to June 30, 2020, the Company reopened three additional hotels and now has 25 of its 30 previously operating hotels open.
•
The Company has developed and implemented action plans with its hotel operators to significantly reduce operating costs at each of its hotels.
•
The Company has canceled or deferred over 65% of its capital expenditures planned for the remainder of 2020.
•
The Company has paused the rebuild of Frenchman's Reef, which the Company had expected to open as two separate hotels in late 2020.
•
The Company has suspended its quarterly dividend commencing with the first quarter dividend that would have been paid in April 2020. The Company expects to pay a dividend in January 2021 sufficient to cover 100% of its taxable income, if any, for the year ending December 31, 2020.
•
On June 9, 2020, the Company finalized amendments to the credit agreements for its $400 million revolving credit facility and $400 million in unsecured term loans. The amendments include a waiver of the quarterly-tested financial covenants through the first quarter of 2021 and modified covenants thereafter through the fourth quarter of 2021.
•
On June 25, 2020, the Company refinanced its only material near-term debt maturity by closing on a $48.0 million mortgage loan secured by the Salt Lake City Marriott Downtown. The loan proceeds were used to repay the existing $52.5 million mortgage loan secured by the Salt Lake City Marriott Downtown that was scheduled to mature in November 2020, with the balance funded by corporate cash on hand.

3



The following table identifies each of the Company's hotels that has suspended operations and the date of reopening, if applicable:
Property
 
# of Rooms
 
Date of Suspension
 
Date of Reopening
Cavallo Point, The Lodge at the Golden Gate
 
142

 
3/17/2020
 
6/24/2020
Courtyard Denver Downtown
 
177

 
3/20/2020
 
6/1/2020
Vail Marriott Mountain Resort & Spa
 
344

 
3/20/2020
 
6/12/2020
The Lodge at Sonoma Renaissance Resort & Spa
 
182

 
3/21/2020
 
7/1/2020
JW Marriott Denver at Cherry Creek
 
199

 
3/22/2020
 
6/1/2020
Havana Cabana Key West
 
106

 
3/23/2020
 
6/1/2020
Hilton Boston Downtown/Faneuil Hall
 
403

 
3/23/2020
 
7/31/2020
Hotel Emblem San Francisco
 
96

 
3/23/2020
 
6/26/2020
Barbary Beach House Key West
 
184

 
3/23/2020
 
6/1/2020
The Landing Resort & Spa
 
82

 
3/23/2020
 
6/5/2020
Westin Boston Waterfront
 
793

 
3/25/2020
 
-
Courtyard New York Manhattan/Fifth Avenue
 
189

 
3/27/2020
 
-
Hilton Garden Inn New York Times Square Central
 
282

 
3/29/2020
 
-
The Lexington Hotel New York City
 
725

 
3/29/2020
 
-
Hilton Burlington
 
258

 
3/31/2020
 
7/16/2020
Hotel Palomar Phoenix
 
242

 
3/31/2020
 
6/21/2020
Orchards Inn Sedona
 
70

 
3/31/2020
 
5/15/2020
The Gwen Chicago
 
311

 
3/31/2020
 
6/10/2020
Renaissance Charleston Historic District
 
166

 
4/6/2020
 
5/14/2020
Chicago Marriott Downtown Magnificent Mile
 
1,200

 
4/10/2020
 
-

The timing of reopening the five remaining hotels will depend primarily on federal, state, and local government guidance, health official recommendations and market demand. The Company currently anticipates reopening these hotels later this year. The Company will continue to aggressively asset manage its hotels and carefully assess staffing needs, cleanliness and safety protocols, business mix and other initiatives.

Capital Expenditures

The Company invested approximately $12.2 million and $31.8 million in capital improvements at its operating hotels during the three and six months ended June 30, 2020, respectively. Due to the COVID-19 pandemic, the Company has canceled or deferred a significant portion of the planned capital improvements at its operating hotels. The Company currently expects to spend approximately $50.0 million on capital improvements at its operating hotels during 2020. Additionally, the Company has paused the rebuild of Frenchman's Reef. The Company spent approximately $37.7 million on the rebuild of Frenchman's Reef during the six months ended June 30, 2020.

Balance Sheet and Liquidity
 
As of June 30, 2020, the Company's liquidity was $363.9 million, comprised of $87.8 million of unrestricted corporate cash, $25.1 million of unrestricted cash at its hotels and $251.0 million of capacity on its senior unsecured credit facility. As of June 30, 2020, the Company had $1.2 billion of total debt outstanding, which consisted of $605.0 million of property-specific mortgage debt, $400.0 million of unsecured term loans and $149.0 million outstanding on its $400.0 million senior unsecured credit facility. The Company has no material debt maturities until 2022.


4


Guidance
Given the high level of uncertainty surrounding the COVID-19 pandemic and its effect on hotel demand, the Company previously withdrew full year 2020 guidance originally issued on February 20, 2020 and is not providing updated guidance at this time.

Earnings Call
The Company will host a conference call to discuss its second quarter results on Friday, August 7, 2020, at 9:00 a.m. Eastern Time (ET). To participate in the live call, investors are invited to dial 844-287-6622 (for domestic callers) or 530-379-4559 (for international callers). The participant passcode is 4445689. A live webcast of the call will be available via the investor relations section of DiamondRock Hospitality Company’s website at www.drhc.com or www.earnings.com. A replay of the webcast will also be archived on the website for one week.

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 top gateway markets and destination resort locations. The Company owns 31 premium quality hotels with over 10,000 rooms. The Company has strategically positioned its hotels to be operated both under leading global brand families as well as unique 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, including statements related to the expected duration of closure of Frenchman’s Reef. 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.

5


DIAMONDROCK HOSPITALITY COMPANY
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)

 
June 30, 2020
 
December 31, 2019
ASSETS
(unaudited)
 
 
Property and equipment, net
$
3,029,905

 
$
3,026,769

Right-of-use assets
97,242

 
98,145

Restricted cash
36,359

 
57,268

Due from hotel managers
62,129

 
91,207

Prepaid and other assets (1)
24,795

 
29,853

Cash and cash equivalents
87,837

 
122,524

Total assets
$
3,338,267

 
$
3,425,766

LIABILITIES AND EQUITY
 
 
 
Liabilities:
 
 
 
Mortgage and other debt, net of unamortized debt issuance costs
$
605,034

 
$
616,329

Unsecured term loans, net of unamortized debt issuance costs
398,267

 
398,770

Senior unsecured credit facility
148,985

 
75,000

Total debt
1,152,286

 
1,090,099

 
 
 
 
Deferred income related to key money, net
11,144

 
11,342

Unfavorable contract liabilities, net
66,412

 
67,422

Deferred rent
54,186

 
52,012

Lease liabilities
103,588

 
103,625

Due to hotel managers
80,524

 
72,445

Distributions declared and unpaid
138

 
25,815

Accounts payable and accrued expenses (2)
63,424

 
81,944

Total liabilities
1,531,702

 
1,504,704

Equity:
 
 
 
Preferred stock, $0.01 par value; 10,000,000 shares authorized; no shares issued and outstanding
—

 
—

Common stock, $0.01 par value; 400,000,000 shares authorized; 199,516,435 and 200,207,795 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively
1,995

 
2,002

Additional paid-in capital
2,082,601

 
2,089,349

Accumulated deficit
(286,198
)
 
(178,861
)
Total stockholders’ equity
1,798,398

 
1,912,490

Noncontrolling interests
8,167

 
8,572

Total equity
1,806,565

 
1,921,062

Total liabilities and equity
$
3,338,267

 
$
3,425,766


(1) Includes $10.7 million of insurance receivables as of December 31, 2019, $11.1 million and $9.8 million of prepaid expenses and $13.7 million and $9.4 million of other assets as of June 30, 2020 and December 31, 2019, respectively.

(2) Includes $28.7 million of deferred tax liabilities, $17.8 million and $18.9 million of accrued property taxes, $5.2 million and $13.1 million of accrued capital expenditures and $11.7 million and $21.2 million of other accrued liabilities as of June 30, 2020 and December 31, 2019, respectively.

6


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,
 
2020
 
2019
 
2020
 
2019
Revenues:

 
 
 
 
 
 
Rooms
$
13,099

 
$
181,629

 
$
124,900

 
$
318,282

Food and beverage
3,038

 
60,714

 
46,943

 
111,179

Other
4,242

 
15,575

 
18,531

 
30,832

Total revenues
20,379

 
257,918

 
190,374

 
460,293

Operating Expenses:
 
 
 
 
 
 
 
Rooms
7,143

 
42,922

 
42,796

 
81,741

Food and beverage
4,715

 
36,456

 
35,802

 
69,606

Management fees
(78
)
 
7,317

 
3,399

 
12,657

Franchise fees
793

 
7,208

 
6,589

 
13,067

Other hotel expenses
40,720

 
81,319

 
118,563

 
156,798

Depreciation and amortization
28,783

 
29,335

 
58,883

 
58,331

Corporate expenses
6,826

 
7,403

 
12,383

 
14,467

Business interruption insurance income
—

 
—

 
—

 
(8,822
)
Total operating expenses, net
88,902

 
211,960

 
278,415

 
397,845

 

 

 
 
 

Interest and other (income) expense, net
(150
)
 
(105
)
 
249

 
(408
)
Interest expense
11,629

 
12,418

 
32,847

 
24,080

  Total other expenses, net
11,479

 
12,313

 
33,096

 
23,672

(Loss) income before income taxes
(80,002
)
 
33,645

 
(121,137
)
 
38,776

Income tax benefit (expense)
6,615

 
(4,571
)
 
13,058

 
(722
)
Net (loss) income
(73,387
)
 
29,074

 
(108,079
)
 
38,054

Less: Net loss (income) attributable to noncontrolling interests
605

 
(114
)
 
738

 
(149
)
Net (loss) income attributable to common stockholders
$
(72,782
)
 
$
28,960

 
$
(107,341
)
 
$
37,905

(Loss) earnings per share:
 
 
 
 
 
 
 
Net (loss) income per share available to common stockholders - basic
$
(0.36
)
 
$
0.14

 
$
(0.53
)
 
$
0.19

Net (loss) income per share available to common stockholders - diluted
$
(0.36
)
 
$
0.14

 
$
(0.53
)
 
$
0.19

 
 
 
 
 
 
 
 
Weighted-average number of common shares outstanding:
 
 
 
 
 
 
 
Basic
200,797,317

 
202,405,507

 
201,002,576

 
202,610,178
Diluted
200,797,317

 
202,900,639

 
201,002,576

 
203,106,490








7


Non-GAAP Financial Measures

We use the following non-GAAP financial measures that we believe are useful to investors as key measures of our operating performance: EBITDA, EBITDAre, Adjusted EBITDA, Hotel EBITDA, Hotel Adjusted EBITDA, FFO and Adjusted FFO. These measures should not be considered in isolation or as a substitute for measures of performance in accordance with U.S. GAAP. EBITDA, EBITDAre, Adjusted EBITDA, Hotel EBITDA, Hotel Adjusted EBITDA, FFO and Adjusted FFO, as calculated by us, may not be comparable to other companies that do not define such terms exactly as the Company.

Use and Limitations of Non-GAAP Financial Measures

Our management and Board of Directors use EBITDA, EBITDAre, Adjusted EBITDA, Hotel EBITDA, Hotel Adjusted EBITDA, FFO and Adjusted FFO to evaluate the performance of our hotels and to facilitate comparisons between us and other lodging REITs, hotel owners who are not REITs and other capital intensive companies. The use of these non-GAAP financial measures has certain limitations. These non-GAAP financial measures as presented by us, may not be comparable to non-GAAP financial measures as calculated by other real estate companies. These measures do not reflect certain expenses or expenditures that we incurred and will incur, such as depreciation, interest and capital expenditures. We compensate for these limitations by separately considering the impact of these excluded items to the extent they are material to operating decisions or assessments of our operating performance. Our reconciliations to the most comparable U.S. GAAP financial measures, and our consolidated statements of operations and cash flows, include interest expense, capital expenditures, and other excluded items, all of which should be considered when evaluating our performance, as well as the usefulness of our non-GAAP financial measures.

These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with U.S. GAAP. They should not be considered as alternatives to operating profit, cash flow from operations, or any other operating performance measure prescribed by U.S. GAAP. These non-GAAP financial measures reflect additional ways of viewing our operations that we believe, when viewed with our U.S. GAAP results and the reconciliations to the corresponding U.S. GAAP financial measures, provide a more complete understanding of factors and trends affecting our business than could be obtained absent this disclosure. We strongly encourage investors to review our financial information in its entirety and not to rely on a single financial measure.

EBITDA, EBITDAre and FFO

EBITDA represents net income (calculated in accordance with U.S. GAAP) excluding: (1) interest expense; (2) provision for income taxes, including income taxes applicable to sale of assets; and (3) depreciation and amortization. The Company computes EBITDAre in accordance with the National Association of Real Estate Investment Trusts ("Nareit") guidelines, as defined in its September 2017 white paper "Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate." EBITDAre represents net income (calculated in accordance with U.S. GAAP) adjusted for: (1) interest expense; (2) provision for income taxes, including income taxes applicable to sale of assets; (3) depreciation and amortization; (4) gains or losses on the disposition of depreciated property including gains or losses on change of control; (5) impairment write-downs of depreciated property and of investments in unconsolidated affiliates caused by a decrease in value of depreciated property in the affiliate; and (6) adjustments to reflect the entity's share of EBITDAre of unconsolidated affiliates.

We believe EBITDA and EBITDAre are useful to an investor in evaluating our operating performance because they help investors evaluate and compare the results of our operations from period to period by removing the impact of our capital structure (primarily interest expense) and our asset base (primarily depreciation and amortization, and in the case of EBITDAre, impairment and gains or losses on dispositions of depreciated property) from our operating results. In addition, covenants included in our debt agreements use EBITDA as a measure of financial compliance. We also use EBITDA and EBITDAre as measures in determining the value of hotel acquisitions and dispositions.

The Company computes FFO in accordance with standards established by the Nareit, which defines FFO as net income determined in accordance with U.S. GAAP, excluding gains or losses from sales of properties and impairment losses, plus real estate related depreciation and amortization. The Company believes that the presentation of FFO provides useful information to investors regarding its operating performance because it is a measure of the Company's operations without regard to specified non-cash items, such as real estate related depreciation and amortization and gains or losses on the sale of assets. The Company also uses FFO as one measure in assessing its operating results.

8


Hotel EBITDA

Hotel EBITDA represents net income excluding: (1) interest expense, (2) income taxes, (3) depreciation and amortization, (4) corporate general and administrative expenses (shown as corporate expenses on the consolidated statements of operations), and (5) hotel acquisition costs. We believe that Hotel EBITDA provides our investors a useful financial measure to evaluate our hotel operating performance, excluding the impact of our capital structure (primarily interest), our asset base (primarily depreciation and amortization), and our corporate-level expenses (corporate expenses and hotel acquisition costs). With respect to Hotel EBITDA, we believe that excluding the effect of corporate-level expenses provides a more complete understanding of the operating results over which individual hotels and third-party management companies have direct control. We believe property-level results provide investors with supplemental information on the ongoing operational performance of our hotels and effectiveness of the third-party management companies operating our business on a property-level basis.

Adjustments to EBITDAre, FFO and Hotel EBITDA

We adjust EBITDAre, FFO and Hotel EBITDA when evaluating our performance because we believe that the exclusion of certain additional items described below provides useful supplemental information to investors regarding our ongoing operating performance and that the presentation of Adjusted EBITDA, Adjusted FFO and Hotel Adjusted EBITDA when combined with U.S. GAAP net income, EBITDAre, FFO and Hotel EBITDA, is beneficial to an investor's complete understanding of our consolidated and property-level operating performance. Hotel Adjusted EBITDA margins are calculated as Hotel Adjusted EBITDA divided by total hotel revenues. We adjust EBITDAre, FFO and Hotel EBITDA for the following items:

•
Non-Cash Lease Expense and Other Amortization: We exclude the non-cash expense incurred from the straight line recognition of expense from our ground leases and other contractual obligations and the non-cash amortization of our favorable and unfavorable contracts, originally recorded in conjunction with certain hotel acquisitions. We exclude these non-cash items because they do not reflect the actual cash amounts due to the respective lessors and service providers in the current period and they are of lesser significance in evaluating our actual performance for that period.

•
Cumulative Effect of a Change in Accounting Principle: The Financial Accounting Standards Board promulgates new accounting standards that require or permit the consolidated statement of operations to reflect the cumulative effect of a change in accounting principle. We exclude the effect of these adjustments, which include the accounting impact from prior periods, because they do not reflect the Company’s actual underlying performance for the current period.

•
Gains or Losses from Early Extinguishment of Debt: We exclude the effect of gains or losses recorded on the early extinguishment of debt because these gains or losses result from transaction activity related to the Company’s capital structure that we believe are not indicative of the ongoing operating performance of the Company or our hotels.

•
Hotel Acquisition Costs: We exclude hotel acquisition costs expensed during the period because we believe these transaction costs are not reflective of the ongoing performance of the Company or our hotels.

•
Severance Costs: We exclude corporate severance costs, or reversals thereof, incurred with the termination of corporate-level employees and severance costs incurred at our hotels related to lease terminations or structured severance programs because we believe these costs do not reflect the ongoing performance of the Company or our hotels.

•
Hotel Manager Transition Items: We exclude the transition items associated with a change in hotel manager because we believe these items do not reflect the ongoing performance of the Company or our hotels.

•
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.



9


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,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
Net (loss) income
$
(73,387
)
 
$
29,074

 
$
(108,079
)
 
$
38,054

Interest expense
11,629

 
12,418

 
32,847

 
24,080

Income tax (benefit) expense
(6,615
)
 
4,571

 
(13,058
)
 
722

Real estate related depreciation and amortization
28,783

 
29,335

 
58,883

 
58,331

EBITDA/EBITDAre
(39,590
)
 
75,398

 
(29,407
)
 
121,187

Non-cash lease expense and other amortization
1,708

 
1,784

 
3,458

 
3,499

Professional fees and pre-opening costs related to Frenchman's Reef (1)
122

 
3,700

 
(175
)
 
5,067

Hotel manager transition costs (2)
334

 
171

 
561

 
468

Severance costs (3)
393

 
—

 
393

 
—

Adjusted EBITDA
$
(37,033
)
 
$
81,053

 
$
(25,170
)
 
$
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) 
Three months ended June 30, 2020 consists of manager transition costs of $0.3 million related to the Westin Boston Waterfront Hotel. Six months ended June 30, 2020 consists of manager transition costs of $1.1 million related to the L'Auberge de Sedona, Orchards Inn Sedona and the Westin Boston Waterfront Hotel and a downward adjustment of $0.6 million to the termination fees for the Sheraton Suites Key West franchise agreement. Three months ended June 30, 2019 consist of $0.1 million of pre-opening costs related to the reopening of the Hotel Emblem and $0.1 million of manager transition costs related to the Westin Washington, D.C. City Center. Six months ended June 30, 2019 consists of $0.4 million of pre-opening costs related to the reopening of the Hotel Emblem and $0.1 million of manager transition costs related to the Westin Washington, D.C. City Center.
(3) 
Three and six months ended June 30, 2020 consists of severance costs incurred with the elimination of positions at our hotels, which are classified within other hotel expenses on the consolidated statement of operations.

10


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,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
Net (loss) income
$
(73,387
)
 
$
29,074

 
$
(108,079
)
 
$
38,054

Interest expense
11,629

 
12,418

 
32,847

 
24,080

Income tax (benefit) expense
(6,615
)
 
4,571

 
(13,058
)
 
722

Real estate related depreciation and amortization
28,783

 
29,335

 
58,883

 
58,331

EBITDA
(39,590
)
 
75,398

 
(29,407
)
 
121,187

Corporate expenses
6,826

 
7,403

 
12,383

 
14,467

Interest and other (income) expense, net
(150
)
 
(105
)
 
249

 
(408
)
Professional fees and pre-opening costs related to Frenchman's Reef (1)
122

 
3,700

 
(175
)
 
5,067

Hotel EBITDA
(32,792
)
 
86,396

 
(16,950
)
 
140,313

Non-cash lease expense and other amortization
1,708

 
1,784

 
3,458

 
3,499

Severance costs
393

 
—

 
393

 
—

Hotel manager transition costs (2)
334

 
171

 
561

 
468

Hotel Adjusted EBITDA
$
(30,357
)
 
$
88,351

 
$
(12,538
)
 
$
144,280

(1) 
Represents pre-opening costs related to the re-opening of Frenchman's Reef, as well as legal and professional fees and other costs incurred at Frenchman's Reef as a result of Hurricane Irma that are not covered by insurance.
(2) 
Three months ended June 30, 2020 consists of manager transition costs of $0.3 million related to the Westin Boston Waterfront Hotel. Six months ended June 30, 2020 consists of manager transition costs of $1.1 million related to the L'Auberge de Sedona, Orchards Inn Sedona and the Westin Boston Waterfront Hotel and a downward adjustment of $0.6 million to the termination fees for the Sheraton Suites Key West franchise agreement. Three months ended June 30, 2019 consist of $0.1 million of pre-opening costs related to the reopening of the Hotel Emblem and $0.1 million of manager transition costs related to the Westin Washington, D.C. City Center. Six months ended June 30, 2019 consists of $0.4 million of pre-opening costs related to the reopening of the Hotel Emblem and $0.1 million of manager transition costs related to the Westin Washington, D.C. City Center.
(3) 
Three and six months ended June 30, 2020 consists of severance costs incurred 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,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
Net (loss) income
$
(73,387
)
 
$
29,074

 
$
(108,079
)
 
$
38,054

Real estate related depreciation and amortization
28,783

 
29,335

 
58,883

 
58,331

FFO
(44,604
)
 
58,409

 
(49,196
)
 
96,385

Non-cash lease expense and other amortization
1,708

 
1,784

 
3,458

 
3,499

Professional fees and pre-opening costs related to Frenchman's Reef  (1)
122

 
3,700

 
(175
)
 
5,067

Hotel manager transition costs (2)
334

 
171

 
561

 
468

Severance costs (3)
393

 
—

 
393

 
—

Fair value adjustments to interest rate swaps
1,000

 
1,075

 
12,312

 
1,647

Adjusted FFO
$
(41,047
)
 
$
65,139

 
$
(32,647
)
 
$
107,066

Adjusted FFO per diluted share
$
(0.20
)
 
$
0.32

 
$
(0.16
)
 
$
0.53


11


(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) 
Three months ended June 30, 2020 consists of manager transition costs of $0.3 million related to the Westin Boston Waterfront Hotel. Six months ended June 30, 2020 consists of manager transition costs of $1.1 million related to the L'Auberge de Sedona, Orchards Inn Sedona and the Westin Boston Waterfront Hotel and a downward adjustment of $0.6 million to the termination fees for the Sheraton Suites Key West franchise agreement. Three months ended June 30, 2019 consist of $0.1 million of pre-opening costs related to the reopening of the Hotel Emblem and $0.1 million of manager transition costs related to the Westin Washington, D.C. City Center. Six months ended June 30, 2019 consists of $0.4 million of pre-opening costs related to the reopening of the Hotel Emblem and $0.1 million of manager transition costs related to the Westin Washington, D.C. City Center.
(3) 
Three and six months ended June 30, 2020 consists of severance costs incurred with the elimination of positions at our hotels, which are classified within other hotel expenses on the consolidated statement of operations.

Reconciliation 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 Frenchman's Reef due to the closure of the hotel (in thousands):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
Revenues
$
20,379

 
$
257,918

 
$
190,374

 
$
460,293

Hotel revenues from Frenchman's Reef
—

 
—

 
—

 
—

Comparable Revenues
$
20,379

 
$
257,918

 
$
190,374

 
$
460,293

 
 
 
 
 
 
 
 
Hotel Adjusted EBITDA
$
(30,357
)
 
$
88,351

 
$
(12,538
)
 
$
144,280

Hotel Adjusted EBITDA from Frenchman's Reef
(6
)
 
2

 
—

 
(8,800
)
Comparable Hotel Adjusted EBITDA
$
(30,363
)
 
$
88,353

 
$
(12,538
)
 
$
135,480

 
 
 
 
 
 
 
 
Hotel Adjusted EBITDA Margin
(148.96
)%
 
34.26
%
 
(6.59
)%
 
31.35
%
Comparable Hotel Adjusted EBITDA Margin
(148.99
)%
 
34.26
%
 
(6.59
)%
 
29.43
%

Selected Quarterly Comparable Operating Information

The following table is presented to provide investors with selected quarterly comparable operating information. The operating information excludes Frenchman's Reef for all periods.
 
Quarter 1, 2019
Quarter 2, 2019
Quarter 3, 2019
Quarter 4, 2019
Full Year 2019
ADR
$
216.38

$
250.23

$
238.50

$
247.02

$
238.63

Occupancy
73.2
%
83.1
%
82.7
%
77.4
%
79.1
%
RevPAR
$
158.30

$
208.02

$
197.14

$
191.08

$
188.75

Revenues (in thousands)
$
202,375

$
257,918

$
240,279

$
237,519

$
938,091

Hotel Adjusted EBITDA (in thousands)
$
47,127

$
88,353

$
73,750

$
69,415

$
278,645

        % of full Year
16.91
%
31.71
%
26.47
%
24.91
%
100.0
%
Hotel Adjusted EBITDA Margin
23.29
%
34.26
%
30.69
%
29.23
%
29.70
%
Available Rooms
863,264

873,145

883,200

883,200

3,502,809



12


Market Capitalization as of June 30, 2020
(in thousands)
Enterprise Value
 
 
 
 
 
Common equity capitalization (at June 30, 2020 closing price of $5.53/share)
 
$
1,114,580

Consolidated debt (face amount)
 
1,156,954

Cash and cash equivalents
 
(87,837)

Total enterprise value
 
$
2,183,697

Share Reconciliation
 
 
 
 
 
Common shares outstanding
 
199,516

Unvested restricted stock held by management and employees
 
573

Share grants under deferred compensation plan
 
1,462

Combined shares outstanding
 
201,551

Debt Summary as of June 30, 2020
(dollars in thousands)
Loan
 
Interest Rate as of June 30, 2020
 
Term
 
Outstanding Principal

 
Maturity
Marriott Salt Lake City Downtown
 
LIBOR + 3.25 (1)
 
Variable
 
$
48,000

 
January 2022 (2)
Westin Washington D.C. City Center
 
3.99%
 
Fixed
 
59,427

 
January 2023
The Lodge at Sonoma Renaissance Resort & Spa
 
3.96%
 
Fixed
 
26,675

 
April 2023
Westin San Diego
 
3.94%
 
Fixed
 
61,064

 
April 2023
Courtyard New York Manhattan / Midtown East
 
4.40%
 
Fixed
 
80,330

 
August 2024
Worthington Renaissance Fort Worth Hotel
 
3.66%
 
Fixed
 
80,067

 
May 2025
JW Marriott Denver Cherry Creek
 
4.33%
 
Fixed
 
60,659

 
July 2025
Westin Boston Waterfront
 
4.36%
 
Fixed
 
188,804

 
November 2025
New Market Tax Credit loan (3)
 
5.17%
 
Fixed
 
2,943

 
December 2020
     Unamortized debt issuance costs
 
 
 
 
 
(2,935
)
 
 
Total mortgage and other debt, net of unamortized debt issuance costs
 
 
 
 
 
605,034

 
 
 
 
 
 
 
 
 
 
 
Unsecured term loan
 
LIBOR + 2.35% (4)
 
Variable
 
350,000

 
July 2024
Unsecured term loan
 
LIBOR + 2.35% (5)
 
Fixed
 
50,000

 
October 2023
     Unamortized debt issuance costs
 
 
 
 
 
(1,733
)
 
 
Unsecured term loans, net of unamortized debt issuance costs
 
 
 
398,267

 
 
 
 
 
 
 
 
 
 
 
Senior unsecured credit facility
 
LIBOR + 2.40% (6)
 
Variable
 
148,985

 
July 2023 (7)
 
 
 
 
 
 
 
 
 
Total debt, net of unamortized debt issuance costs
 
 
 
 
 
$
1,152,286

 
 
Weighted-average interest rate of fixed rate debt
 
4.23
%
 
 
 
 
 
 
Total weighted-average interest rate
 
3.80
%
 
 
 
 
 
 
(1) 
LIBOR is subject to a floor of 1.0%.
(2) 
The loan may be extended for an additional year upon satisfaction of certain conditions.
(3) 
Assumed in connection with the acquisition of the Hotel Palomar Phoenix in March 2018.
(4) 
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. Effective June 9, 2020, LIBOR is subject to a floor of 0.25%.
(5) 
The Company entered into an interest rate swap agreement in January 2019 to fix LIBOR at 2.41% through October 2023.
(6) 
Effective June 9, 2020, LIBOR is subject to a floor of 0.25%.
(7) 
May be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions.

13



 
Operating Statistics – April
 
Number of Rooms
ADR
 
Occupancy
 
RevPAR
 
April 2020
April 2019
B/(W) 2019
 
April 2020
April 2019
B/(W) 2019
 
April 2020
April 2019
B/(W) 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
Atlanta Marriott Alpharetta
318

$
154.89

$
162.01

(4.4
)%
 
1.0
%
78.8
%
(77.8
)%
 
$
1.57

$
127.65

(98.8
)%
Bethesda Marriott Suites
272

$
158.67

$
186.41

(14.9
)%
 
2.2
%
80.7
%
(78.5
)%
 
$
3.46

$
150.45

(97.7
)%
Courtyard New York Manhattan/Midtown East
321

$
120.21

$
272.33

(55.9
)%
 
46.9
%
96.2
%
(49.3
)%
 
$
56.43

$
262.01

(78.5
)%
Kimpton Shorebreak Hotel Huntington Beach
157

$
94.71

$
254.27

(62.8
)%
 
65.6
%
73.8
%
(8.2
)%
 
$
62.11

$
187.71

(66.9
)%
L'Auberge de Sedona Resort & Spa
88

$
470.88

$
797.91

(41.0
)%
 
9.1
%
87.2
%
(78.1
)%
 
$
42.99

$
695.45

(93.8
)%
Salt Lake City Marriott Downtown
510

$
156.77

$
163.98

(4.4
)%
 
1.4
%
67.0
%
(65.6
)%
 
$
2.18

$
109.94

(98.0
)%
Westin Fort Lauderdale Beach Resort
433

$
131.73

$
252.92

(47.9
)%
 
5.3
%
89.7
%
(84.4
)%
 
$
6.92

$
226.76

(96.9
)%
Westin San Diego
436

$
172.62

$
202.87

(14.9
)%
 
40.3
%
78.2
%
(37.9
)%
 
$
69.49

$
158.70

(56.2
)%
Westin Washington D.C. City Center
410

$
177.89

$
245.73

(27.6
)%
 
1.1
%
91.0
%
(89.9
)%
 
$
1.94

$
223.73

(99.1
)%
Worthington Renaissance Fort Worth Hotel
504

$
107.66

$
196.01

(45.1
)%
 
6.9
%
81.3
%
(74.4
)%
 
$
7.45

$
159.40

(95.3
)%
Total Open for Entire Period - 10 Hotels
3,449

$
139.74

$
230.66

(39.4
)%
 
14.9
%
81.9
%
(67.0
)%
 
$
20.89

$
188.99

(88.9
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Closed for Entire Period - 20 Hotels
6,151

$
—

$
251.77

(100.0
)%
 
—
%
82.2
%
(82.2
)%
 
$
—

$
206.88

(100.0
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Portfolio Total (1)
9,600

$
122.82

$
244.20

(49.7
)%
 
5.4
%
82.1
%
(76.7
)%
 
$
6.67

$
200.45

(96.7
)%

(1) Amounts exclude the operating results of Frenchman's Reef for all periods presented.


14


 
Operating Statistics – May
 
Number of Rooms
ADR
 
Occupancy
 
RevPAR
 
May 2020
May 2019
B/(W) 2019
 
May 2020
May 2019
B/(W) 2019
 
May 2020
May 2019
B/(W) 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Atlanta Marriott Alpharetta
318

$
136.10

$
157.94

(13.8
)%
 
1.9
%
74.3
%
(72.4
)%
 
$
2.62

$
117.31

(97.8
)%
Bethesda Marriott Suites
272

$
160.17

$
191.12

(16.2
)%
 
2.3
%
83.7
%
(81.4
)%
 
$
3.61

$
160.02

(97.7
)%
Courtyard New York Manhattan/Midtown East
321

$
145.36

$
270.70

(46.3
)%
 
93.6
%
97.6
%
(4.0
)%
 
$
136.10

$
264.25

(48.5
)%
Kimpton Shorebreak Huntington Beach Resort
157

$
261.12

$
259.80

0.5
 %
 
32.2
%
77.2
%
(45.0
)%
 
$
84.02

$
200.65

(58.1
)%
L'Auberge de Sedona Resort & Spa
88

$
660.62

$
656.42

0.6
 %
 
30.7
%
89.7
%
(59.0
)%
 
$
202.93

$
588.56

(65.5
)%
Salt Lake City Marriott Downtown
510

$
118.25

$
161.04

(26.6
)%
 
4.0
%
71.2
%
(67.2
)%
 
$
4.71

$
114.71

(95.9
)%
Westin Fort Lauderdale Beach Resort
433

$
150.42

$
176.07

(14.6
)%
 
14.4
%
80.6
%
(66.2
)%
 
$
21.73

$
141.97

(84.7
)%
Westin San Diego
436

$
169.01

$
195.65

(13.6
)%
 
29.2
%
77.9
%
(48.7
)%
 
$
49.32

$
152.35

(67.6
)%
Westin Washington D.C. City Center
410

$
134.90

$
250.12

(46.1
)%
 
1.3
%
91.2
%
(89.9
)%
 
$
1.75

$
228.01

(99.2
)%
Worthington Renaissance Fort Worth Hotel
504

$
137.15

$
198.00

(30.7
)%
 
9.1
%
72.2
%
(63.1
)%
 
$
12.44

$
142.95

(91.3
)%
Total Open for Entire Period - 10 Hotels
3,449

$
179.36

$
217.16

(17.4
)%
 
18.9
%
80.2
%
(61.3
)%
 
$
33.88

$
174.22

(80.6
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Partially Open During Period - 2 Hotels
236

$
191.44

$
305.11

(37.3
)%
 
10.1
%
87.9
%
(77.8
)%
 
$
19.26

$
268.12

(92.8
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Closed for Entire Period - 18 Hotels
5,915

$
—

$
274.12

(100.0
)%
 
—
%
81.5
%
(81.5
)%
 
$
—

$
223.38

(100.0
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Portfolio Total (1)
9,600

$
182.39

$
254.71

(28.4
)%
 
7.1
%
81.2
%
(74.1
)%
 
$
12.93

$
206.81

(93.7
)%

(1) Amounts exclude the operating results of Frenchman's Reef for all periods presented.


15


 
Operating Statistics – June
 
Number of Rooms
ADR
 
Occupancy
 
RevPAR
 
June 2020
June 2019
B/(W) 2019
 
June 2020
June 2019
B/(W) 2019
 
June 2020
June 2019
B/(W) 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Atlanta Marriott Alpharetta
318

$
116.69

$
161.39

(27.7
)%
 
17.5
%
71.3
%
(53.8
)%
 
$
20.40

$
115.02

(82.3
)%
Barbary Beach House Key West
184

$
219.64

$
207.73

5.7
 %
 
28.8
%
87.0
%
(58.2
)%
 
$
63.23

$
180.83

(65.0
)%
Bethesda Marriott Suites
272

$
125.72

$
187.51

(33.0
)%
 
8.7
%
85.5
%
(76.8
)%
 
$
10.89

$
160.35

(93.2
)%
Courtyard Denver Downtown
177

$
105.50

$
230.10

(54.2
)%
 
17.0
%
88.0
%
(71.0
)%
 
$
17.96

$
202.50

(91.1
)%
Courtyard New York Manhattan/Midtown East
321

$
149.07

$
279.81

(46.7
)%
 
86.2
%
98.0
%
(11.8
)%
 
$
128.49

$
274.11

(53.1
)%
Havana Cabana Key West
106

$
196.11

$
172.44

13.7
 %
 
49.7
%
90.0
%
(40.3
)%
 
$
97.56

$
155.14

(37.1
)%
JW Marriott Denver Cherry Creek
199

$
206.16

$
279.70

(26.3
)%
 
20.5
%
87.5
%
(67.0
)%
 
$
42.30

$
244.71

(82.7
)%
Kimpton Shorebreak Huntington Beach Resort
157

$
265.80

$
261.61

1.6
 %
 
51.5
%
85.6
%
(34.1
)%
 
$
137.02

$
223.95

(38.8
)%
L'Auberge de Sedona Resort & Spa
88

$
580.46

$
534.13

8.7
 %
 
70.3
%
74.3
%
(4.0
)%
 
$
408.08

$
396.95

2.8
 %
Orchards Inn Sedona
70

$
185.07

$
202.82

(8.8
)%
 
48.0
%
83.0
%
(35.0
)%
 
$
88.75

$
168.34

(47.3
)%
Renaissance Charleston Historic District
166

$
186.05

$
261.51

(28.9
)%
 
34.6
%
88.7
%
(54.1
)%
 
$
64.43

$
231.90

(72.2
)%
Salt Lake City Marriott Downtown
510

$
129.15

$
175.24

(26.3
)%
 
8.5
%
80.2
%
(71.7
)%
 
$
10.93

$
140.52

(92.2
)%
Westin Fort Lauderdale Beach Resort
433

$
139.18

$
156.75

(11.2
)%
 
35.7
%
71.9
%
(36.2
)%
 
$
49.63

$
112.73

(56.0
)%
Westin San Diego
436

$
160.35

$
201.25

(20.3
)%
 
14.1
%
91.5
%
(77.4
)%
 
$
22.66

$
184.12

(87.7
)%
Westin Washington D.C. City Center
410

$
142.02

$
222.97

(36.3
)%
 
3.0
%
95.1
%
(92.1
)%
 
$
4.19

$
212.09

(98.0
)%
Worthington Renaissance Fort Worth Hotel
504

$
166.92

$
182.41

(8.5
)%
 
18.1
%
79.2
%
(61.1
)%
 
$
30.16

$
144.48

(79.1
)%
Total Open for Entire Period - 16 Hotels
4,351

$
188.23

$
213.29

(11.7
)%
 
25.9
%
84.4
%
(58.5
)%
 
$
48.83

$
180.04

(72.9
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Partially Open During Period - 6 Hotels
1,217

$
246.53

$
255.25

(3.4
)%
 
10.7
%
77.9
%
(67.2
)%
 
$
26.48

$
198.87

(86.7
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Closed for Entire Period - 8 Hotels
4,032

$
—

$
289.22

(100.0
)%
 
—
%
90.6
%
(90.6
)%
 
$
—

$
261.94

(100.0
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Portfolio Total (1)
9,600

$
193.92

$
251.62

(22.9
)%
 
13.1
%
86.2
%
(73.1
)%
 
$
25.44

$
216.83

(88.3
)%

(1) Amounts exclude the operating results of Frenchman's Reef for all periods presented.














16




Operating Statistics – Second Quarter
 
Number of Rooms
ADR
 
Occupancy
 
RevPAR
 
2Q 2020
2Q 2019
B/(W) 2019
 
2Q 2020
2Q 2019
B/(W) 2019
 
2Q 2020
2Q 2019
B/(W) 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Atlanta Marriott Alpharetta
318

$
120.47

$
160.44

(24.9
)%
 
6.8
%
74.8
%
(68.0
)%
 
$
8.14

$
119.97

(93.2
)%
Bethesda Marriott Suites
272

$
137.27

$
188.39

(27.1
)%
 
4.3
%
83.3
%
(79.0
)%
 
$
5.96

$
156.97

(96.2
)%
Courtyard New York Manhattan/Midtown East
321

$
141.61

$
274.26

(48.4
)%
 
75.8
%
97.3
%
(21.5
)%
 
$
107.33

$
266.76

(59.8
)%
Kimpton Shorebreak Huntington Beach Resort
157

$
190.15

$
258.74

(26.5
)%
 
49.6
%
78.9
%
(29.3
)%
 
$
94.27

$
204.07

(53.8
)%
L'Auberge de Sedona Resort & Spa
88

$
594.35

$
669.18

(11.2
)%
 
36.7
%
83.8
%
(47.1
)%
 
$
217.83

$
560.63

(61.1
)%
Salt Lake City Marriott Downtown
510

$
128.69

$
167.09

(23.0
)%
 
4.6
%
72.8
%
(68.2
)%
 
$
5.93

$
121.65

(95.1
)%
Westin Fort Lauderdale Beach Resort
433

$
141.48

$
198.53

(28.7
)%
 
18.4
%
80.7
%
(62.3
)%
 
$
26.04

$
160.28

(83.8
)%
Westin San Diego
436

$
169.28

$
199.95

(15.3
)%
 
27.9
%
82.5
%
(54.6
)%
 
$
47.18

$
164.92

(71.4
)%
Westin Washington D.C. City Center
410

$
147.51

$
239.48

(38.4
)%
 
1.8
%
92.4
%
(90.6
)%
 
$
2.62

$
221.35

(98.8
)%
Worthington Renaissance Fort Worth Hotel
504

$
146.86

$
192.06

(23.5
)%
 
11.3
%
77.5
%
(66.2
)%
 
$
16.64

$
148.88

(88.8
)%
Total Open for Entire Period - 10 Hotels
3,449

$
173.08

$
218.45

(20.8
)%
 
19.6
%
81.9
%
(62.3
)%
 
$
33.91

$
178.89

(81.0
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Partially Open During Period - 13 Hotels
3,319

$
184.86

$
251.67

(26.5
)%
 
4.3
%
79.2
%
(74.9
)%
 
$
7.98

$
199.39

(96.0
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Closed for Entire Period - 7 Hotels
2,832

$
—

$
284.26

(100.0
)%
 
—
%
89.2
%
(89.2
)%
 
$
—

$
253.59

(100.0
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Portfolio Total (1)
9,600

$
175.74

$
250.23

(29.8
)%
 
8.5
%
83.1
%
(74.6
)%
 
$
14.99

$
208.02

(92.8
)%

(1) Amounts exclude the operating results of Frenchman's Reef for all periods presented.


17


 
Operating Statistics – Year to Date
 
Number of Rooms
ADR
 
Occupancy
 
RevPAR
 
YTD 2020
YTD 2019
B/(W) 2019
 
YTD 2020
YTD 2019
B/(W) 2019
 
YTD 2020
YTD 2019
B/(W) 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Atlanta Marriott Alpharetta
318

$
167.54

$
168.59

(0.6
)%
 
29.1
%
72.6
%
(43.5
)%
 
$
48.74

$
122.44

(60.2
)%
Bethesda Marriott Suites
272

$
168.34

$
181.32

(7.2
)%
 
25.9
%
74.4
%
(48.5
)%
 
$
43.57

$
134.84

(67.7
)%
Courtyard New York Manhattan/Midtown East
321

$
154.60

$
233.54

(33.8
)%
 
76.2
%
94.7
%
(18.5
)%
 
$
117.86

$
221.06

(46.7
)%
Kimpton Shorebreak Huntington Beach Resort
157

$
211.59

$
248.09

(14.7
)%
 
55.2
%
77.1
%
(21.9
)%
 
$
116.73

$
191.22

(39.0
)%
L'Auberge de Sedona Resort & Spa
88

$
568.53

$
623.67

(8.8
)%
 
50.3
%
82.1
%
(31.8
)%
 
$
286.00

$
512.04

(44.1
)%
Salt Lake City Marriott Downtown
510

$
167.49

$
170.00

(1.5
)%
 
28.0
%
66.0
%
(38.0
)%
 
$
46.81

$
112.24

(58.3
)%
Westin Fort Lauderdale Beach Resort
433

$
251.18

$
228.58

9.9
 %
 
49.5
%
88.1
%
(38.6
)%
 
$
124.30

$
201.29

(38.2
)%
Westin San Diego
436

$
182.76

$
195.09

(6.3
)%
 
47.3
%
80.0
%
(32.7
)%
 
$
86.53

$
156.11

(44.6
)%
Westin Washington D.C. City Center
410

$
191.70

$
222.10

(13.7
)%
 
31.0
%
85.0
%
(54.0
)%
 
$
59.48

$
188.80

(68.5
)%
Worthington Renaissance Fort Worth Hotel
504

$
187.14

$
190.08

(1.5
)%
 
34.4
%
78.5
%
(44.1
)%
 
$
64.47

$
149.15

(56.8
)%
Total Open for Entire Period - 10 Hotels
3,449

$
200.33

$
214.03

(6.4
)%
 
40.7
%
79.5
%
(38.8
)%
 
$
81.47

$
170.11

(52.1
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Partially Open During Period - 20 Hotels
6,151

$
219.62

$
246.27

(10.8
)%
 
30.0
%
77.4
%
(47.4
)%
 
$
65.88

$
190.71

(65.5
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Portfolio Total (1)
9,600

$
211.29

$
234.48

(9.9
)%
 
33.8
%
78.2
%
(44.4
)%
 
$
71.48

$
183.30

(61.0
)%
 
(1) Amounts exclude the operating results of Frenchman's Reef for all periods presented.

18


 
Hotel Adjusted EBITDA Reconciliation
 
 
 
Second Quarter 2020
 
 
 
 
 
 
Plus:
Plus:
Plus:
Equals:
 
 
Days of Operation
Total Revenues
 
Net Income / (Loss)
Depreciation
Interest Expense
Adjustments (1)
Hotel Adjusted EBITDA
Atlanta Marriott Alpharetta
 
91
$
279

 
$
(969
)
$
360

$
—

$
—

$
(609
)
Barbary Beach House Key West
 
30
$
523

 
$
(1,416
)
$
680

$
—

$
—

$
(736
)
Bethesda Marriott Suites
 
91
$
243

 
$
(2,958
)
$
677

$
—

$
1,506

$
(775
)
Cavallo Point, The Lodge at the Golden Gate
 
7
$
141

 
$
(2,940
)
$
1,837

$
—

$
94

$
(1,009
)
Chicago Marriott Downtown Magnificent Mile
 
9
$
242

 
$
(9,622
)
$
4,179

$
55

$
(397
)
$
(5,785
)
Courtyard Denver Downtown
 
30
$
196

 
$
(713
)
$
376

$
—

$
—

$
(337
)
Courtyard New York Manhattan/Fifth Avenue
 
—
$
46

 
$
(2,036
)
$
329

$
—

$
253

$
(1,454
)
Courtyard New York Manhattan/Midtown East
 
91
$
3,138

 
$
(1,175
)
$
569

$
972

$
—

$
366

Frenchman's Reef
 
—
$
—

 
$
6

$
—

$
—

$
—

$
6

Havana Cabana Key West
 
30
$
447

 
$
(586
)
$
272

$
—

$
—

$
(314
)
Hilton Boston Downtown/Faneuil Hall
 
—
$
254

 
$
(2,339
)
$
1,220

$
—

$
—

$
(1,119
)
Hilton Burlington
 
—
$
—

 
$
(1,162
)
$
500

$
—

$
—

$
(662
)
Hilton Garden Inn New York/Times Square Central
 
—
$
41

 
$
(2,312
)
$
843

$
—

$
—

$
(1,469
)
Hotel Emblem San Francisco
 
5
$
7

 
$
(797
)
$
289

$
—

$
—

$
(508
)
Hotel Palomar Phoenix
 
10
$
427

 
$
(1,622
)
$
672

$
39

$
286

$
(625
)
JW Marriott Denver Cherry Creek
 
30
$
256

 
$
(2,252
)
$
535

$
675

$
6

$
(1,036
)
Kimpton Shorebreak Huntington Beach Resort
 
91
$
1,824

 
$
(137
)
$
408

$
—

$
—

$
271

L'Auberge de Sedona Resort & Spa
 
91
$
2,544

 
$
92

$
622

$
—

$
—

$
714

Orchards Inn Sedona
 
47
$
357

 
$
(181
)
$
80

$
—

$
42

$
(59
)
Renaissance Charleston Historic District
 
53
$
798

 
$
(452
)
$
419

$
—

$
(32
)
$
(65
)
Salt Lake City Marriott Downtown
 
91
$
903

 
$
(1,690
)
$
552

$
582

$
—

$
(556
)
The Gwen Chicago
 
21
$
318

 
$
(2,411
)
$
1,110

$
—

$
—

$
(1,301
)
The Landing Resort & Spa
 
26
$
733

 
$
(413
)
$
425

$
—

$
—

$
12

The Lexington New York City
 
—
$
56

 
$
(6,664
)
$
3,043

$
7

$
8

$
(3,606
)
The Lodge at Sonoma Renaissance Resort & Spa
 
—
$
50

 
$
(1,636
)
$
444

$
273

$
—

$
(919
)
Vail Marriott Mountain Resort & Spa
 
19
$
81

 
$
(2,829
)
$
1,121

$
—

$
—

$
(1,708
)
Westin Boston Waterfront
 
—
$
543

 
$
(7,553
)
$
2,559

$
2,128

$
(60
)
$
(2,926
)
Westin Fort Lauderdale Beach Resort
 
91
$
2,286

 
$
(2,321
)
$
1,093

$
—

$
—

$
(1,228
)
Westin San Diego
 
91
$
2,484

 
$
(1,551
)
$
1,124

$
618

$
—

$
191

Westin Washington D.C. City Center
 
91
$
174

 
$
(3,456
)
$
1,324

$
640

$
—

$
(1,492
)
Worthington Renaissance Fort Worth Hotel
 
91
$
988

 
$
(3,507
)
$
1,121

$
765

$
2

$
(1,619
)
Total
 
 
$
20,379

 
$
(67,602
)
$
28,783

$
6,754

$
1,708

$
(30,357
)
Less: Frenchman's Reef
 
 
$
—

 
$
(6
)
$
—

$
—

$
—

$
(6
)
Comparable Total
 
 
$
20,379

 
$
(67,608
)
$
28,783

$
6,754

$
1,708

$
(30,363
)

(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.




19


 
Hotel Adjusted EBITDA Reconciliation
 
 
Second Quarter 2019
 
 
 
 
 
Plus:
Plus:
Plus:
Equals:
 
 
Total Revenues
 
Net Income / (Loss)
Depreciation
Interest Expense
Adjustments (1)
Hotel Adjusted EBITDA
Atlanta Marriott Alpharetta
 
$
4,862

 
$
1,188

$
459

$
—

$
—

$
1,647

Barbary Beach House Key West
 
$
4,446

 
$
1,217

$
344

$
—

$
—

$
1,561

Bethesda Marriott Suites
 
$
5,234

 
$
18

$
474

$
—

$
1,517

$
2,009

Cavallo Point, The Lodge at the Golden Gate
 
$
10,721

 
$
1,268

$
1,789

$
—

$
110

$
3,167

Chicago Marriott Downtown Magnificent Mile
 
$
34,590

 
$
9,306

$
4,166

$
47

$
(397
)
$
13,122

Courtyard Denver Downtown
 
$
3,291

 
$
1,466

$
287

$
—

$
—

$
1,753

Courtyard New York Manhattan/Fifth Avenue
 
$
4,341

 
$
283

$
440

$
—

$
253

$
976

Courtyard New York Manhattan/Midtown East
 
$
8,048

 
$
981

$
688

$
964

$
—

$
2,633

Frenchman's Reef
 
$
—

 
$
(2
)
$
—

$
—

$
—

$
(2
)
Havana Cabana Key West
 
$
2,438

 
$
746

$
235

$
—

$
—

$
981

Hilton Boston Downtown/Faneuil Hall
 
$
13,161

 
$
4,939

$
1,233

$
—

$
—

$
6,172

Hilton Burlington
 
$
4,993

 
$
1,422

$
515

$
—

$
—

$
1,937

Hilton Garden Inn New York/Times Square Central
 
$
7,090

 
$
1,457

$
826

$
—

$
—

$
2,283

Hotel Emblem San Francisco
 
$
1,995

 
$
180

$
297

$
—

$
—

$
477

Hotel Palomar Phoenix
 
$
6,070

 
$
668

$
663

$
38

$
294

$
1,663

JW Marriott Denver Cherry Creek
 
$
5,797

 
$
265

$
688

$
687

$
6

$
1,646

Kimpton Shorebreak Huntington Beach Resort
 
$
4,483

 
$
1,192

$
349

$
—

$
40

$
1,581

L'Auberge de Sedona Resort & Spa
 
$
7,668

 
$
2,101

$
508

$
—

$
—

$
2,609

Orchards Inn Sedona
 
$
2,414

 
$
622

$
237

$
—

$
42

$
901

Renaissance Charleston Historic District
 
$
4,685

 
$
1,906

$
418

$
—

$
(32
)
$
2,292

Salt Lake City Marriott Downtown
 
$
7,863

 
$
1,695

$
574

$
606

$
—

$
2,875

The Gwen Chicago
 
$
9,881

 
$
2,332

$
1,149

$
—

$
—

$
3,481

The Landing Resort & Spa
 
$
1,804

 
$
(332
)
$
385

$
—

$
—

$
53

The Lexington New York City
 
$
18,275

 
$
1,324

$
3,557

$
8

$
8

$
4,897

The Lodge at Sonoma Renaissance Resort & Spa
 
$
6,946

 
$
1,501

$
529

$
280

$
—

$
2,310

Vail Marriott Mountain Resort & Spa
 
$
4,485

 
$
(1,622
)
$
1,035

$
—

$
—

$
(587
)
Westin Boston Waterfront
 
$
29,239

 
$
5,918

$
2,436

$
2,169

$
(60
)
$
10,463

Westin Fort Lauderdale Beach Resort
 
$
12,614

 
$
2,220

$
1,633

$
—

$
—

$
3,853

Westin San Diego
 
$
9,033

 
$
1,629

$
1,136

$
634

$
—

$
3,399

Westin Washington D.C. City Center
 
$
10,316

 
$
2,030

$
1,317

$
662

$
—

$
4,009

Worthington Renaissance Fort Worth Hotel
 
$
11,135

 
$
2,548

$
968

$
780

$
2

$
4,298

Total
 
$
257,918

 
$
50,466

$
29,335

$
6,875

$
1,783

$
88,351

Less: Frenchman's Reef
 
$
—

 
$
2

$
—

$
—

$
—

$
2

Comparable Total
 
$
257,918

 
$
50,468

$
29,335

$
6,875

$
1,783

$
88,353


(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.



20


 
Hotel Adjusted EBITDA Reconciliation
 
 
 
Year to Date 2020
 
 
 
 
 
 
Plus:
Plus:
Plus:
Equals:
 
 
Days of Operation
Total Revenues
 
Net Income / (Loss)
Depreciation
Interest Expense
Adjustments (1)
Hotel Adjusted EBITDA
Atlanta Marriott Alpharetta
 
182
$
4,258

 
$
(225
)
$
734

$
—

$
—

$
509

Barbary Beach House Key West
 
112
$
5,923

 
$
(84
)
$
1,357

$
—

$
—

$
1,273

Bethesda Marriott Suites
 
182
$
2,979

 
$
(5,055
)
$
1,206

$
—

$
3,020

$
(829
)
Cavallo Point, The Lodge at the Golden Gate
 
83
$
7,857

 
$
(4,007
)
$
3,706

$
—

$
187

$
(114
)
Chicago Marriott Downtown Magnificent Mile
 
100
$
13,844

 
$
(17,186
)
$
8,404

$
108

$
(795
)
$
(9,469
)
Courtyard Denver Downtown
 
109
$
1,665

 
$
(715
)
$
719

$
—

$
—

$
4

Courtyard New York Manhattan/Fifth Avenue
 
86
$
2,324

 
$
(3,530
)
$
780

$
—

$
507

$
(2,243
)
Courtyard New York Manhattan/Midtown East
 
182
$
7,118

 
$
(3,930
)
$
1,291

$
1,923

$
—

$
(716
)
Frenchman's Reef
 
—
$
—

 
$
—

$
—

$
—

$
—

$
—

Havana Cabana Key West
 
112
$
3,164

 
$
291

$
525

$
—

$
—

$
816

Hilton Boston Downtown/Faneuil Hall
 
82
$
5,519

 
$
(3,383
)
$
2,447

$
—

$
—

$
(936
)
Hilton Burlington
 
90
$
1,697

 
$
(1,986
)
$
1,005

$
—

$
—

$
(981
)
Hilton Garden Inn New York/Times Square Central
 
88
$
3,221

 
$
(4,239
)
$
1,690

$
—

$
—

$
(2,549
)
Hotel Emblem San Francisco
 
87
$
1,842

 
$
(792
)
$
576

$
—

$
—

$
(216
)
Hotel Palomar Phoenix
 
100
$
6,844

 
$
(221
)
$
1,345

$
77

$
579

$
1,780

JW Marriott Denver Cherry Creek
 
111
$
3,661

 
$
(3,545
)
$
1,342

$
1,353

$
12

$
(838
)
Kimpton Shorebreak Huntington Beach Resort
 
182
$
5,035

 
$
(44
)
$
819

$
—

$
27

$
802

L'Auberge de Sedona Resort & Spa
 
182
$
7,182

 
$
(513
)
$
1,360

$
—

$
—

$
847

Orchards Inn Sedona
 
137
$
1,609

 
$
(371
)
$
297

$
—

$
84

$
10

Renaissance Charleston Historic District
 
144
$
3,692

 
$
(237
)
$
846

$
—

$
(63
)
$
546

Salt Lake City Marriott Downtown
 
182
$
7,628

 
$
(698
)
$
1,111

$
1,174

$
—

$
1,587

The Gwen Chicago
 
111
$
5,005

 
$
(3,960
)
$
2,223

$
—

$
—

$
(1,737
)
The Landing Resort & Spa
 
108
$
2,447

 
$
(828
)
$
835

$
—

$
—

$
7

The Lexington New York City
 
88
$
8,703

 
$
(13,995
)
$
6,664

$
12

$
16

$
(7,303
)
The Lodge at Sonoma Renaissance Resort & Spa
 
80
$
3,604

 
$
(2,738
)
$
897

$
548

$
—

$
(1,293
)
Vail Marriott Mountain Resort & Spa
 
98
$
12,561

 
$
1,073

$
2,231

$
—

$
—

$
3,304

Westin Boston Waterfront
 
84
$
16,674

 
$
(11,334
)
$
5,168

$
4,266

$
(120
)
$
(2,020
)
Westin Fort Lauderdale Beach Resort
 
182
$
19,073

 
$
3,625

$
2,145

$
—

$
—

$
5,770

Westin San Diego
 
182
$
10,084

 
$
(940
)
$
2,261

$
1,240

$
—

$
2,561

Westin Washington D.C. City Center
 
182
$
5,536

 
$
(5,029
)
$
2,642

$
1,285

$
—

$
(1,102
)
Worthington Renaissance Fort Worth Hotel
 
182
$
9,625

 
$
(3,804
)
$
2,257

$
1,533

$
4

$
(10
)
Total
 
 
$
190,374

 
$
(88,400
)
$
58,883

$
13,519

$
3,458

$
(12,538
)
Less: Frenchman's Reef
 
 
$
—

 
$
—

$
—

$
—

$
—

$
—

Comparable Total
 
 
$
190,374

 
$
(88,400
)
$
58,883

$
13,519

$
3,458

$
(12,538
)

(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.



21


 
Hotel Adjusted EBITDA Reconciliation
 
 
Year to Date 2019
 
 
 
 
 
Plus:
Plus:
Plus:
Equals:
 
 
Total Revenues
 
Net Income / (Loss)
Depreciation
Interest Expense
Adjustments (1)
Hotel Adjusted EBITDA
Atlanta Marriott Alpharetta
 
$
10,172

 
$
2,768

$
934

$
—

$
—

$
3,702

Barbary Beach House Key West
 
$
10,240

 
$
3,612

$
682

$
—

$
—

$
4,294

Bethesda Marriott Suites
 
$
9,171

 
$
(954
)
$
951

$
—

$
3,042

$
3,039

Cavallo Point, The Lodge at the Golden Gate
 
$
19,967

 
$
1,047

$
3,729

$
—

$
142

$
4,918

Chicago Marriott Downtown Magnificent Mile
 
$
50,721

 
$
5,239

$
8,295

$
118

$
(795
)
$
12,857

Courtyard Denver Downtown
 
$
5,537

 
$
2,014

$
584

$
—

$
—

$
2,598

Courtyard New York Manhattan/Fifth Avenue
 
$
7,226

 
$
(622
)
$
881

$
—

$
507

$
766

Courtyard New York Manhattan/Midtown East
 
$
13,303

 
$
(640
)
$
1,379

$
1,922

$
—

$
2,661

Frenchman's Reef
 
$
—

 
$
8,800

$
—

$
—

$
—

$
8,800

Havana Cabana Key West
 
$
5,354

 
$
1,949

$
480

$
—

$
—

$
2,429

Hilton Boston Downtown/Faneuil Hall
 
$
19,833

 
$
4,853

$
2,477

$
—

$
—

$
7,330

Hilton Burlington
 
$
7,910

 
$
1,466

$
1,015

$
—

$
—

$
2,481

Hilton Garden Inn New York/Times Square Central
 
$
11,714

 
$
787

$
1,671

$
—

$
—

$
2,458

Hotel Emblem San Francisco
 
$
3,344

 
$
(77
)
$
572

$
—

$
—

$
495

Hotel Palomar Phoenix
 
$
13,683

 
$
2,743

$
1,329

$
76

$
590

$
4,738

JW Marriott Denver Cherry Creek
 
$
8,474

 
$
(1,213
)
$
1,229

$
1,370

$
12

$
1,398

Kimpton Shorebreak Huntington Beach Resort
 
$
8,424

 
$
1,778

$
698

$
—

$
81

$
2,557

L'Auberge de Sedona Resort & Spa
 
$
13,622

 
$
2,960

$
1,017

$
—

$
—

$
3,977

Orchards Inn Sedona
 
$
4,292

 
$
896

$
475

$
—

$
84

$
1,455

Renaissance Charleston Historic District
 
$
8,168

 
$
2,796

$
821

$
—

$
(63
)
$
3,554

Salt Lake City Marriott Downtown
 
$
14,737

 
$
2,752

$
1,104

$
1,210

$
—

$
5,066

The Gwen Chicago
 
$
14,937

 
$
773

$
2,208

$
—

$
—

$
2,981

The Landing Resort & Spa
 
$
3,558

 
$
(792
)
$
761

$
—

$
—

$
(31
)
The Lexington New York City
 
$
29,534

 
$
(3,098
)
$
7,085

$
12

$
16

$
4,015

The Lodge at Sonoma Renaissance Resort & Spa
 
$
11,475

 
$
1,165

$
1,064

$
558

$
—

$
2,787

Vail Marriott Mountain Resort & Spa
 
$
19,880

 
$
4,923

$
2,025

$
—

$
—

$
6,948

Westin Boston Waterfront
 
$
46,982

 
$
3,873

$
4,849

$
4,324

$
(120
)
$
12,926

Westin Fort Lauderdale Beach Resort
 
$
30,115

 
$
8,172

$
3,178

$
—

$
—

$
11,350

Westin San Diego
 
$
17,679

 
$
3,330

$
2,262

$
1,264

$
—

$
6,856

Westin Washington D.C. City Center
 
$
17,410

 
$
1,795

$
2,639

$
1,322

$
—

$
5,756

Worthington Renaissance Fort Worth Hotel
 
$
22,831

 
$
5,729

$
1,937

$
1,555

$
4

$
9,225

Total
 
$
460,293

 
$
68,824

$
58,331

$
13,731

$
3,500

$
144,280

Less: Frenchman's Reef
 
$
—

 
$
(8,800
)
$
—

$
—

$
—

$
(8,800
)
Comparable Total
 
$
460,293

 
$
60,024

$
58,331

$
13,731

$
3,500

$
135,480


(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.



22