8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (date of earliest event reported): February 28, 2018

ASHFORD HOSPITALITY PRIME, INC.

(Exact name of registrant as specified in its charter)

MARYLAND	001-35972	46-2488594
(State of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification Number)

14185 Dallas Parkway, Suite 1100
Dallas, Texas	75254
(Address of principal executive offices)	(Zip code)

Registrant’s telephone number, including area code: (972) 490-9600

Check the appropriate box if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14-a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company    þ

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ¨

ITEM 2.02    RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On February 28, 2018, Ashford Hospitality Prime, Inc. (the “Company”) issued a press release announcing its financial results for the fourth quarter ended December 31, 2017. A copy of the press release is attached hereto as Exhibit 99.1.

The information in this Form 8-K and Exhibits attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

ITEM 9.01    FINANCIAL STATEMENTS AND EXHIBITS.

(d)    Exhibits

Exhibit NumberDescription

99.1 Fourth Quarter 2017 Earnings Press Release of the Company, dated February 28, 2018.

SIGNATURE

Pursuant to the requirements of Section 12 of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: February 28, 2018

ASHFORD HOSPITALITY PRIME, INC.
By:	/s/ Deric S. Eubanks
	Deric S. Eubanks
	Chief Financial Officer

EX-99.1

EXHIBIT 99.1

NEWS RELEASE

Contact:	Deric Eubanks	Jordan Jennings	Joe Calabrese
	Chief Financial Officer	Investor Relations	Financial Relations Board
	(972) 490-9600	(972) 778-9487	(212) 827-3772

ASHFORD PRIME REPORTS FOURTH QUARTER AND

YEAR END 2017 RESULTS

Insurance Recoveries Well Ahead of Previously Communicated Expectations

$4.1 Million in Business Interruption Income Booked in Fourth Quarter

Announced Agreement to Acquire the Ritz-Carlton Sarasota

DALLAS, February 28, 2018 -- Ashford Hospitality Prime, Inc. (NYSE: AHP) (“Ashford Prime” or the “Company”) today reported the following results and performance measures for the fourth quarter ended December 31, 2017. The performance measurements for Occupancy, Average Daily Rate (ADR), Revenue Per Available Room (RevPAR), and Hotel EBITDA are comparable assuming each of the hotel properties in the Company’s hotel portfolio as of December 31, 2017 were owned as of the beginning of each of the periods presented. Unless otherwise stated, all reported results compare the fourth quarter ended December 31, 2017, with the fourth quarter ended December 31, 2016 (see discussion below). The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release.

STRATEGIC OVERVIEW

• Focused strategy of investing in luxury hotels and resorts

• Targets conservative leverage levels of 45% Net Debt to Gross Assets

• Highly-aligned management team and advisory structure

• Dividend yield of approximately 7.4%

FINANCIAL AND OPERATING HIGHLIGHTS

• Net income attributable to common stockholders for the quarter was $23.2 million or $0.65 per diluted share. For the full year of 2017, net income attributable to common stockholders was $16.2 million or $0.51 per diluted share.

• Comparable RevPAR for all hotels that did not incur business interruption claims decreased 1.1% to $174.39 during the fourth quarter

• Comparable RevPAR for all hotels not under renovation decreased 2.7% to $181.23 during the fourth quarter

• Comparable Hotel EBITDA Margin for all hotels increased 299 basis points to 30.3% for the quarter

• Comparable Hotel EBITDA flow-through for all hotels was 101% for the quarter

• Adjusted funds from operations (AFFO) was $0.31 per diluted share for the quarter as compared with $0.34 per diluted share from the prior-year quarter

• Adjusted EBITDA was $22.0 million for the quarter, compared with $21.6 million for the prior year quarter

• During the quarter, the Company booked $4.1 million of business interruption income related to lost profits at the Ritz-Carlton St. Thomas and the Pier House Resort during September, October and November 2017

AHP Reports Fourth Quarter Results

Page 2

February 28, 2018

• During the quarter, the Company announced that it entered into an agreement with Marriott to convert its Courtyard San Francisco Downtown hotel to an Autograph Collection property

• During the quarter, the Company announced that it had completed the sale of its Marriott Plano Legacy hotel in Plano, Texas for $104 million

• Subsequent to the end of the quarter, the Company announced it has entered into a definitive agreement to acquire the 266-room Ritz-Carlton Sarasota in Sarasota, FL for $171 million ($643,000 per key)

• Capex invested during the quarter was $10.3million

UPDATE ON IMPACT FROM HURRICANES AND CALIFORNIA WILDFIRES

As previously announced, the Company’s Ritz-Carlton St. Thomas resort received physical damage from Hurricane Irma and the Company continues to work with its insurers to assess the damage and impact to operations. Three of the six guestroom buildings on the property were damaged, and the Company, along with Ritz-Carlton, continues to work on a comprehensive capital investment plan to rebuild the resort. The resort, which represents 8.3% of Ashford Prime's Hotel EBITDA on a trailing twelve-month basis through the fourth quarter, remains functioning and currently has 83 of its 180 guest rooms available for those taking part in the recovery effort. The resort has suspended online reservations until October 2018.

The Company's Pier House Resort & Spa sustained minor physical damage from Hurricane Irma, and the hotel is currently accepting reservations and has resumed operations with all of its 142 guest rooms available and in service.

In the fourth quarter, the Company recognized $4.1 million of business interruption income for these two properties related to lost profits for the period of September through November. The Company will continue to work with its insurers on the business interruption claim at these properties.

During the quarter, the Company’s two properties in Yountville, California - the Bardessono Hotel & Spa and the Hotel Yountville - were negatively impacted by the wildfires that affected Northern California. While neither property incurred any physical damage to their structures, the fires had a significant impact on the business operations of the hotels and the Company is in the process of working with its insurers on business interruption claims. As part of that effort, the Company expects to record $2.3 million in business interruption income in the first quarter for lost profits from the fourth quarter at these two hotels. The Company has a deductible of $500,000 associated with this claim.

RITZ-CARLTON SARASOTA ACQUISITION

On February 16, 2018, the Company announced it had entered into a definitive agreement to acquire the 266-room Ritz-Carlton Sarasota in Sarasota, FL for $171 million ($643,000 per key).  The purchase price represents a trailing twelve month cap rate, as of December 31, 2017, of 6.0% and the Company expects to realize a stabilized unleveraged yield of approximately 8% on its investment. To fund the acquisition, the Company plans to use cash on its balance sheet as well as either drawing on its revolving credit line or securing a non-recourse mortgage loan on the property. The acquisition is expected to close in April 2018, subject to customary closing conditions. Because the acquisition is subject to customary closing conditions, the Company can give no assurance that the transaction will be consummated by such date or at all. 

UPDATE ON NON-CORE HOTELS STRATEGY

During the fourth quarter, the Company announced the finalization of its strategy for its non-core hotels. On November 1, 2017, the Company announced plans to convert its Courtyard San Francisco Downtown hotel to an Autograph Collection hotel by December 2019 pursuant to a conversion PIP currently estimated to be approximately $30 million incremental to capital projects already underway - including updates to the guestrooms, guest bathrooms, corridors, lobby, restaurant, facade, and meeting space - which will create a distinctive theme and style for the property that is commensurate with the Autograph Collection product. Marriott will continue to manage the property after the conversion.

AHP Reports Fourth Quarter Results

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February 28, 2018

Additionally, on November 1, 2017, the Company announced that it had completed the sale of its Marriott Plano Legacy hotel in Plano, Texas for $104 million. The Company also announced that it is in the process of marketing for sale its other non-core hotel, the Renaissance Tampa in Tampa, FL.

CAPITAL STRUCTURE

At December 31, 2017, the Company had total assets of $1.4 billion. As of December 31, 2017, the Company had $826 million of mortgage debt of which $48 million related to its joint venture partner’s share of debt on the Capital Hilton and Hilton La Jolla Torrey Pines. The Company’s total combined debt had a blended average interest rate of 4.3%.

PORTFOLIO REVPAR

As of December 31, 2017, the portfolio consisted of twelve properties. During the fourth quarter of 2017, seven of the Company’s hotels were not under renovation. The Company believes reporting its operating metrics for its hotels on a comparable total basis (all 12 hotels) and comparable not under renovation basis (7 hotels) is a measure that reflects a meaningful and focused comparison of the operating results in its portfolio. Details of each category are provided in the tables attached to this release.

• Comparable RevPAR decreased 9.2% to $188.15 for all hotels on a 5.3% decrease in ADR and a 4.2% decrease in occupancy

• Comparable RevPAR decreased 2.7% to $181.23 for hotels not under renovation on a 0.8% decrease in ADR and a 1.9% decrease in occupancy

• Comparable RevPAR decreased 1.1% for all hotels that did not incur business interruption claims on a 2.2% increase in ADR and a 3.2% decrease in occupancy

HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS

The Company believes year-over-year Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin comparisons are more meaningful to gauge the performance of the Company’s hotels than sequential quarter-over-quarter comparisons. Given the substantial seasonality in the Company’s portfolio, to help investors better understand this seasonality, the Company provides quarterly detail on its Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin for the current and certain prior-year periods based upon the number of hotels in the Company’s portfolio as of the end of the current period. As the Company’s portfolio mix changes from time to time so will the seasonality for Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin. The details of the quarterly calculations for the previous four quarters for the twelve hotels are provided in the table attached to this release.

COMMON STOCK DIVIDEND

On December 11, 2017, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.16 per diluted share for the Company's common stock for the fourth quarter ending December 31, 2017.  The dividend, which equates to an annual rate of $0.64 per share, was paid on January 16, 2018, to shareholders of record as of December 29, 2017.

The Board also approved the Company's dividend policy for 2018.  The Company expects to pay a quarterly cash dividend of $0.16 per share for 2018, or $0.64 per share on an annualized basis.  The Board will continue to review its dividend policy on a quarter-to-quarter basis.  The adoption of a dividend policy does not commit the Board of Directors to declare future dividends or the amount thereof.

“Hurricanes Irma and Maria as well as the wildfires in Northern California had a significant impact on the operations of four of our properties and on our overall results for the quarter,” said Richard J. Stockton, Ashford Prime's President and Chief Executive Officer. “However, on a positive note, we continue to work with our insurers on business interruption claims at the affected properties and during the quarter we were able to realize approximately $4.1 million in business interruption recoveries. We remain focused on the execution of our strategies within the luxury chain scale

AHP Reports Fourth Quarter Results

Page 4

February 28, 2018

segment and are excited about our pending acquisition of the Ritz-Carlton Sarasota. With the upbranding of the Courtyard San Francisco, the sale of the Marriott Plano and the announced listing for sale of the Tampa Renaissance, we are pleased to have made significant progress on our strategy for our non-core hotels and refining our portfolio. We will continue to look for ways to accretively grow our luxury hotel portfolio and maximize returns for our shareholders.”

INVESTOR CONFERENCE CALL AND SIMULCAST

Ashford Hospitality Prime, Inc. will conduct a conference call on Thursday, March 1, 2018, at 11:00 a.m. ET. The number to call for this interactive teleconference is (719) 325-4821.  A replay of the conference call will be available through Thursday, March 8, 2018, by dialing (719) 457-0820 and entering the confirmation number, 5950335.

The Company will also provide an online simulcast and rebroadcast of its fourth quarter 2017 earnings release conference call. The live broadcast of Ashford Prime's quarterly conference call will be available online at the Company's web site, www.ahpreit.com on Thursday, March 1, 2018, beginning at 11:00 a.m. ET.  The online replay will follow shortly after the call and continue for approximately one year.

Substantially all of our non-current assets consist of real estate investments secured by real estate. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, most industry investors consider supplemental measures of performance, which are not measures of operating performance under GAAP, to assist in evaluating a real estate company's operations. These supplemental measures include FFO, AFFO, EBITDA, and Hotel EBITDA. FFO is computed in accordance with our interpretation of standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the NAREIT definition differently than us. None of FFO, AFFO, EBITDA or Hotel EBITDA represents cash generated from operating activities as determined by GAAP and should not be considered as an alternative to a) GAAP net income (loss) as an indication of our financial performance or b) GAAP cash flows from operating activities as a measure of our liquidity, nor are such measures indicative of funds available to satisfy our cash needs, including our ability to make cash distributions. However, management believes FFO, AFFO, EBITDA, and Hotel EBITDA to be meaningful measures of a REIT's performance and should be considered along with, but not as an alternative to, net income and cash flow as a measure of our operating performance.

* * * * *

Ashford Hospitality Prime is a real estate investment trust (REIT) focused on investing in luxury hotels and resorts.

Ashford has created an Ashford App for the hospitality REIT investor community. The Ashford App is available for free download at Apple’s App Store and the Google Play Store by searching “Ashford.”

Certain statements and assumptions in this press release contain or are based upon "forward-looking" information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release may include, among others, statements about the implied share price for the Company's common stock. These forward-looking statements are subject to risks and uncertainties. When we use the words "will likely result," "may," "anticipate," "estimate," "should," "expect," "believe," "intend," or similar expressions, we intend to identify forward-looking statements. Such statements are subject to numerous assumptions and uncertainties, many of which are outside Ashford Prime's control.

These forward-looking statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated, including, without limitation: general volatility of the capital markets and the market price of our common stock; changes in our business or investment strategy; availability, terms and deployment of capital; availability of qualified personnel; changes in our industry and the market in which we operate, interest rates or the general economy; our ability to successfully complete and integrate acquisitions, and manage our planned growth, and the degree and nature of our competition. These and other risk factors are more fully discussed in Ashford Prime's filings with the Securities and Exchange Commission. EBITDA is defined as net income before interest, taxes, depreciation and amortization. EBITDA yield is defined as trailing twelve month EBITDA divided by the purchase price. A capitalization rate is determined by dividing the property's annual net operating income by the purchase price. Net operating income is the property's funds from operations minus

AHP Reports Fourth Quarter Results

Page 5

February 28, 2018

a capital expense reserve of either 4% or 5% of gross revenues. Hotel EBITDA flow-through is the change in Hotel EBITDA divided by the change in total revenues. Hotel EBITDA Margin is Hotel EBITDA divided by total revenues. Funds from operations ("FFO"), as defined by the White Paper on FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts ("NAREIT") in April 2002, represents net income (loss) computed in accordance with generally accepted accounting principles ("GAAP"), excluding gains (or losses) from sales of properties and extraordinary items as defined by GAAP, plus depreciation and amortization of real estate assets, and net of adjustments for the portion of these items related to unconsolidated entities and joint ventures.

The forward-looking statements included in this press release are only made as of the date of this press release. Investors should not place undue reliance on these forward-looking statements. We are not obligated to publicly update or revise any forward-looking statements, whether as a result of new information, future events or circumstances, changes in expectations or otherwise.

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

(unaudited)

	December 31, 2017			December 31, 2016
ASSETS
Investments in hotel properties, gross	$	1,403,110		$	1,258,412
Accumulated depreciation	(257,268		)	(243,880		)
Investments in hotel properties, net	1,145,842			1,014,532
Cash and cash equivalents	137,522			126,790
Restricted cash	47,820			37,855
Accounts receivable, net of allowance of $94 and $96, respectively	14,334			18,194
Insurance receivable	8,825			—
Inventories	1,425			1,479
Note receivable	8,098			8,098
Deferred costs, net	656			1,020
Prepaid expenses	3,670			3,669
Investment in Ashford Inc., at fair value	18,124			8,407
Derivative assets	594			1,149
Other assets	9,426			2,249
Intangible assets, net	22,545			22,846
Due from Ashford Trust OP, net	—			488
Due from AQUA U.S. Fund	—			2,289
Due from related party, net	349			377
Due from third-party hotel managers	4,589			7,555
Total assets	$	1,423,819		$	1,256,997
LIABILITIES AND EQUITY
Liabilities:
Indebtedness, net	$	820,959		$	764,616
Accounts payable and accrued expenses	56,803			44,791
Dividends and distributions payable	8,146			5,038
Due to Ashford Inc.	1,703			5,085
Due to affiliate	—			2,500
Due to third-party hotel managers	1,709			973
Intangible liability, net	3,569			3,625
Other liabilities	1,628			1,432
Total liabilities	894,517			828,060
5.50% Series B cumulative convertible preferred stock, $0.01 par value, 4,965,850 and 2,890,850 shares issued and outstanding at December 31, 2017 and 2016, respectively	106,123			65,960
Redeemable noncontrolling interests in operating partnership	46,627			59,544
Equity:
Common stock, $0.01 par value, 200,000,000 shares authorized, 32,120,210 and 26,021,552 shares issued and outstanding at December 31, 2017 and 2016, respectively	321			260
Additional paid-in capital	469,791			401,790
Accumulated deficit	(88,807		)	(93,254		)
Total stockholders' equity of the Company	381,305			308,796
Noncontrolling interest in consolidated entities	(4,753		)	(5,363		)
Total equity	376,552			303,433
Total liabilities and equity	$	1,423,819		$	1,256,997

6

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2017			2016			2017			2016
REVENUE
Rooms	$	61,803		$	65,066		$	286,006		$	287,844
Food and beverage	20,815			23,596			96,415			95,618
Other	9,896			5,290			31,484			22,267
Total hotel revenue	92,514			93,952			413,905			405,729
Other	42			25			158			128
Total revenue	92,556			93,977			414,063			405,857
EXPENSES
Hotel operating expenses
Rooms	14,623			15,700			65,731			65,541
Food and beverage	14,579			16,815			68,469			68,471
Other expenses	27,388			26,191			122,322			113,114
Management fees	3,431			3,498			15,074			15,456
Total hotel operating expenses	60,021			62,204			271,596			262,582
Property taxes, insurance and other	5,696			5,862			21,337			20,539
Depreciation and amortization	12,689			11,555			52,262			45,897
Impairment charges	60			—			1,068			—
Advisory services fee:
Base advisory fee	2,221			2,009			8,800			8,343
Reimbursable expenses	476			771			2,017			2,798
Incentive fee	—			(772		)	—			—
Non-cash stock/unit-based compensation	615			594			(1,683		)	3,814
Contract modification cost	—			—			5,000			—
Transaction costs	40			(44		)	6,678			457
Corporate, general and administrative:
Non-cash stock/unit-based compensation	20			—			265			271
Other general and administrative	1,119			(2,128		)	7,881			14,015
Total operating expenses	82,957			80,051			375,221			358,716
OPERATING INCOME (LOSS)	9,599			13,926			38,842			47,141
Equity in earnings (loss) of unconsolidated entity	—			—			—			(2,587		)
Interest income	215			35			690			167
Gain (loss) on sale of hotel property	23,797			—			23,797			26,359
Other income (expense)	(85		)	(77		)	(377		)	(165		)
Interest expense	(9,045		)	(9,052		)	(34,034		)	(37,712		)
Amortization of loan costs	(1,149		)	(763		)	(4,903		)	(3,169		)
Write-off of loan costs and exit fees	(1,531		)	—			(3,874		)	(2,595		)
Unrealized gain (loss) on investments	6,314			(879		)	9,717			(1,970		)
Unrealized gain (loss) on derivatives	(527		)	(1,793		)	(2,056		)	425
INCOME (LOSS) BEFORE INCOME TAXES	27,588			1,397			27,802			25,894
Income tax (expense) benefit	856			(552		)	522			(1,574		)
NET INCOME (LOSS)	28,444			845			28,324			24,320
(Income) loss from consolidated entities attributable to noncontrolling interest	(528		)	(536		)	(3,264		)	(3,105		)
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership	(2,996		)	95			(2,038		)	(1,899		)
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY	24,920			404			23,022			19,316
Preferred dividends	(1,708		)	(994		)	(6,795		)	(3,860		)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS	$	23,212		$	(590	)	$	16,227		$	15,456
INCOME (LOSS) PER SHARE – BASIC AND DILUTED
Basic:
Net income (loss) attributable to common stockholders	$	0.73		$	(0.03	)	$	0.52		$	0.57
Weighted average common shares outstanding – basic	31,610			25,532			30,473			26,648
Diluted:
Net income (loss) attributable to common stockholders	$	0.65		$	(0.03	)	$	0.51		$	0.55
Weighted average common shares outstanding – diluted	38,178			25,532			34,706			31,195
Dividends declared per common share:	$	0.16		$	0.12		$	0.64		$	0.46

7

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA

(in thousands)

(unaudited)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2017			2016			2017			2016
Net income (loss)	$	28,444		$	845		$	28,324		$	24,320
(Income) loss from consolidated entities attributable to noncontrolling interest	(528		)	(536		)	(3,264		)	(3,105		)
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership	(2,996		)	95			(2,038		)	(1,899		)
Net income (loss) attributable to the Company	24,920			404			23,022			19,316
Interest income	(213		)	(35		)	(683		)	(167		)
Interest expense and amortization of loan costs	9,691			9,393			37,029			39,232
Depreciation and amortization	11,952			10,838			49,361			43,054
Income tax expense (benefit)	(708		)	552			(389		)	1,574
Net income (loss) attributable to redeemable noncontrolling interests in operating partnership	2,996			(95		)	2,038			1,899
EBITDA available to the Company and OP unitholders	48,638			21,057			110,378			104,908
Amortization of favorable (unfavorable) contract assets (liabilities)	44			37			180			106
Transaction and management conversion costs	74			(44		)	6,774			457
Other (income) expense	85			77			377			165
(Gain) loss on sale of hotel property	(23,797		)	—			(23,797		)	(26,359		)
Write-off of loan costs and exit fees	1,531			—			3,874			2,595
Unrealized (gain) loss on investments	(6,314		)	879			(9,717		)	1,970
Unrealized (gain) loss on derivatives	524			1,791			2,053			(427		)
Non-cash stock/unit-based compensation	665			615			(1,327		)	4,156
Legal, advisory and settlement costs	203			(2,862		)	3,711			11,194
Contract modification cost	—			—			5,000			—
Software implementation costs	—			—			79			—
Impairment and uninsured hurricane related costs	308			—			4,889			—
Company’s portion of unrealized (gain) loss of investment in securities investment fund	—			—			—			2,587
Adjusted EBITDA available to the Company and OP unitholders	$	21,961		$	21,550		$	102,474		$	101,352

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO FUNDS FROM OPERATIONS ("FFO") AND ADJUSTED FFO

(in thousands, except per share amounts)

(unaudited)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2017			2016			2017			2016
Net income (loss)	$	28,444		$	845		$	28,324		$	24,320
(Income) loss from consolidated entities attributable to noncontrolling interest	(528		)	(536		)	(3,264		)	(3,105		)
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership	(2,996		)	95			(2,038		)	(1,899		)
Preferred dividends	(1,708		)	(994		)	(6,795		)	(3,860		)
Net income (loss) attributable to common stockholders	23,212			(590		)	16,227			15,456
Depreciation and amortization on real estate	11,952			10,838			49,361			43,054
Impairment charges on real estate	60			—			1,068			—
Net income (loss) attributable to redeemable noncontrolling interests in operating partnership	2,996			(95		)	2,038			1,899
(Gain) loss on sale of hotel property	(23,797		)	—			(23,797		)	(26,359		)
FFO available to common stockholders and OP unitholders	14,423			10,153			44,897			34,050
Preferred dividends	1,708			994			6,795			3,860
Transaction and management conversion costs	74			(44		)	6,774			457
Other (income) expense	85			77			377			165
Write-off of loan costs and exit fees	1,531			—			3,874			2,595
Unrealized (gain) loss on investments	(6,314		)	879			(9,717		)	1,970
Unrealized (gain) loss on derivatives	524			1,791			2,053			(427		)
Non-cash stock/unit-based compensation	665			615			(1,327		)	4,156
Legal, advisory and settlement costs	203			(2,862		)	3,711			11,194
Contract modification cost	—			—			5,000			—
Software implementation costs	—			—			79			—
Uninsured hurricane related costs	248			—			3,821			—
Tax reform	(161		)	—			(161		)	—
Company’s portion of unrealized (gain) loss of investment in securities investment fund	—			—			—			2,587
Adjusted FFO available to the Company and OP unitholders	$	12,986		$	11,603		$	66,176		$	60,607
Adjusted FFO per diluted share available to the Company and OP unitholders	$	0.31		$	0.34		$	1.62		$	1.73
Weighted average diluted shares	42,406			33,891			40,957			34,999

8

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

SUMMARY OF INDEBTEDNESS

DECEMBER 31, 2017

(dollars in thousands)

(unaudited)

Indebtedness	Maturity	Interest Rate	Fixed-Rate Debt			Floating-Rate Debt				Total Debt			Comparable TTM Hotel EBITDA (9)		Comparable TTM EBITDA Debt Yield
GACC Sofitel - 1 hotel	March 2018	LIBOR + 2.30%	$	—		$	80,000		(1)	$	80,000		$	5,778	7.2	%
Credit Agricole Pier House - 1 hotel	March 2018	LIBOR + 2.25%	—			70,000			(2)	70,000			10,982		15.7	%
TIF Philly CY - 1 hotel	June 2018	12.85%	8,098			—				8,098			N/A		N/A
Apollo Ritz-Carlton St. Thomas - 1 hotel	December 2018	LIBOR + 4.95%	—			42,000			(3)	42,000			10,595		25.2	%
Morgan Stanley Pool - 4 hotels	February 2019	LIBOR + 2.58%	—			277,628			(4)	277,628			48,169		17.4	%
JPMorgan Park Hyatt Beaver Creek - 1 hotel	April 2019	LIBOR + 2.75%	—			67,500			(5)	67,500			9,387		13.9	%
Aareal - 2 hotels	November 2019	LIBOR + 2.65%	—			190,010			(6)	190,010			32,412		17.1	%
Secured revolving credit facility - various	November 2019	Base Rate(8) + 1.25% to 2.50% or LIBOR + 2.25% to 3.50%	—			—			(7)	—			N/A		N/A
BAML Hotel Yountville - 1 hotel	May 2022	LIBOR + 2.55%	—			51,000				51,000			5,157		10.1	%
BAML Bardessono - 1 hotel	August 2022	LIBOR + 2.55%	—			40,000				40,000			4,441		11.1	%
Total			$	8,098		$	818,138			$	826,236		$	126,921	15.4	%
Percentage			1.0		%	99.0		%		100.0		%
Weighted average interest rate			12.85		%	4.24		%		4.32		%

All indebtedness is non-recourse with the exception of the secured revolving credit facility.

⁽¹⁾    This mortgage loan has three one-year extension options subject to satisfaction of certain conditions, of which the second was exercised in March 2017.

⁽²⁾    This mortgage loan has three one-year extension options subject to satisfaction of certain conditions, of which the first was exercised in March 2017.

⁽³⁾    This mortgage loan has three one-year extension options subject to satisfaction of certain conditions, of which the first was exercised in December 2017.

⁽⁴⁾    This mortgage loan has five one-year extension options subject to satisfaction of certain conditions.

⁽⁵⁾    This mortgage loan has three one-year extension options subject to satisfaction of certain conditions.

⁽⁶⁾    This mortgage loan has two one-year extension options subject to satisfaction of certain conditions.

⁽⁷⁾    This credit facility has two one-year extension options subject to advance notice, certain conditions and a 0.25% extension fee beginning November 2019.

⁽⁸⁾    Base Rate, as defined in the secured revolving credit facility agreement, is the greater of (i) the prime rate set by Bank of America, or (ii) federal funds rate + 0.5%, or (iii) LIBOR + 1.0%.

⁽⁹⁾    See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

9

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

INDEBTEDNESS BY MATURITY ASSUMING EXTENSION OPTIONS ARE EXERCISED

DECEMBER 31, 2017

(dollars in thousands)

(unaudited)

	2018		2019		2020		2021		2022		Thereafter		Total
Secured revolving credit facility - various	$	—	$	—	$	—	$	—	$	—	$	—	$	—
TIF Philly CY - 1 hotel	8,098		—		—		—		—		—		8,098
GACC Sofitel - 1 hotel	—		80,000		—		—		—		—		80,000
Credit Agricole Pier House - 1 hotel	—		—		70,000		—		—		—		70,000
Apollo Ritz-Carlton St. Thomas - 1 hotel	—		—		42,000		—		—		—		42,000
Aareal - 2 hotels	—		—		—		177,486		—		—		177,486
JPMorgan Park Hyatt Beaver Creek - 1 hotel	—		—		—		—		67,500		—		67,500
BAML Hotel Yountville - 1 hotel	—		—		—		—		51,000		—		51,000
BAML Bardessono - 1 hotel	—		—		—		—		40,000		—		40,000
Morgan Stanley Pool - 4 hotels	—		—		—		—		—		277,628		277,628
Principal due in future periods	$	8,098	$	80,000	$	112,000	$	177,486	$	158,500	$	277,628	$	813,712
Scheduled amortization payments remaining	3,176		3,120		3,312		2,916		—		—		12,524
Total indebtedness	$	11,274	$	83,120	$	115,312	$	180,402	$	158,500	$	277,628	$	826,236

10

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

KEY PERFORMANCE INDICATORS

(unaudited)

ALL HOTELS:
		Three Months Ended December 31,
		Actual			Non-comparable Adjustments			Comparable			Actual			Non-comparable Adjustments			Comparable			Actual		Comparable
		2017			2017			2017			2016			2016			2016			% Variance		% Variance
	Rooms revenue (in thousands)	$	61,803		$	(1,858	)	$	59,945		$	65,066		$	2,972		$	68,038		(5.01	)%	(11.89	)%
	RevPAR	$	186.65		$	(148.30	)	$	188.15		$	191.04		$	(241.07	)	$	207.27		(2.30	)%	(9.22	)%
	Occupancy	77.19		%	(77.32		)%	77.18		%	80.70		%	84.50		%	80.56		%	(4.35	)%	(4.20	)%
	ADR	$	241.81		$	(191.81	)	$	243.78		$	236.73		$	(285.30	)	$	257.29		2.15	%	(5.25	)%

ALL HOTELS:
		Year Ended December 31,
		Actual			Non-comparable Adjustments			Comparable			Actual			Non-comparable Adjustments			Comparable			Actual		Comparable
		2017			2017			2017			2016			2016			2016			% Variance		% Variance
	Rooms revenue (in thousands)	$	286,006		$	(3,256	)	$	282,750		$	287,844		$	5,607		$	293,451		(0.64	)%	(3.65	)%
	RevPAR	$	206.42		$	(34.16	)	$	219.15		$	205.54		$	(59.31	)	$	224.71		0.43	%	(2.47	)%
	Occupancy	80.97		%	(70.49		)%	81.75		%	82.94		%	78.28		%	83.27		%	(2.38	)%	(1.83	)%
	ADR	$	254.92		$	(48.46	)	$	268.07		$	247.83		$	(75.76	)	$	269.85		2.86	%	(0.66	)%

NOTES:

(1) The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2) All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

ALL HOTELS      NOT UNDER RENOVATION:
		Three Months Ended December 31,
		Actual			Non-comparable Adjustments			Comparable			Actual			Non-comparable Adjustments			Comparable			Actual		Comparable
		2017			2017			2017			2016			2016			2016			% Variance		% Variance
	Rooms revenue (in thousands)	$	33,187		$	(1,858	)	$	31,329		$	29,164		$	2,972		$	32,136		13.79	%	(2.51	)%
	RevPAR	$	179.00		$	(148.30	)	$	181.23		$	157.72		$	(241.07	)	$	186.20		13.49	%	(2.67	)%
	Occupancy	75.81		%	(77.32		)%	75.70		%	77.63		%	84.50		%	77.14		%	(2.34	)%	(1.87	)%
	ADR	$	236.13		$	(191.81	)	$	239.40		$	203.17		$	(285.30	)	$	241.39		16.22	%	(0.82	)%

ALL HOTELS      NOT UNDER RENOVATION:
		Year Ended December 31,
		Actual			Non-comparable Adjustments			Comparable			Actual			Non-comparable Adjustments			Comparable			Actual		Comparable
		2017			2017			2017			2016			2016			2016			% Variance		% Variance
	Rooms revenue (in thousands)	$	146,358		$	(3,256	)	$	143,102		$	136,871		$	5,607		$	142,478		6.93	%	0.44	%
	RevPAR	$	187.51		$	(34.16	)	$	208.84		$	175.22		$	(59.31	)	$	207.51		7.01	%	0.64	%
	Occupancy	79.54		%	(70.49		)%	80.80		%	80.37		%	78.28		%	80.66		%	(1.03	)%	0.17	%
	ADR	$	235.74		$	(48.46	)	$	258.47		$	218.01		$	(75.76	)	$	257.27		8.13	%	0.47	%

NOTES:

(1) The above comparable information assumes the seven hotel properties owned and included in the Company's operations at December 31, 2017, and not under renovation during the three months ended December 31, 2017, were owned as of the beginning of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2) All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

(3) Excluded Hotels Under Renovation:

Capital Hilton Washington D.C., Chicago Sofitel Magnificent Mile, Key West Pier House Resort, San Francisco Courtyard Downtown, St. Thomas Ritz-Carlton

11

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

HOTEL EBITDA

(dollars in thousands)

(unaudited)

ALL HOTELS:		Three Months Ended								Year Ended
		December 31,								December 31,
		2017			2016			% Variance		2017			2016			% Variance
	Total hotel revenue	$	92,514		$	93,952		(1.53	)%	$	413,905		$	405,729		2.02	%
	Non-comparable adjustments	(2,942		)	4,948					(4,164		)	16,563
	Comparable total hotel revenue	$	89,572		$	98,900		(9.43	)%	$	409,741		$	422,292		(2.97	)%
	Hotel EBITDA	$	28,168		$	26,326		7.00	%	$	128,300		$	124,239		3.27	%
	Non-comparable adjustments	(1,076		)	635					(1,379		)	2,475
	Comparable hotel EBITDA	$	27,092		$	26,961		0.49	%	$	126,921		$	126,714		0.16	%
	Hotel EBITDA margin	30.45		%	28.02		%	2.43	%	31.00		%	30.62		%	0.38	%
	Comparable hotel EBITDA margin	30.25		%	27.26		%	2.99	%	30.98		%	30.01		%	0.97	%
	Hotel EBITDA adjustments attributable to consolidated noncontrolling interests	$	1,620		$	1,722		(5.91	)%	$	8,103		$	7,586		6.82	%
	Hotel EBITDA attributable to the Company and OP unitholders	$	26,548		$	24,604		7.90	%	$	120,197		$	116,653		3.04	%
	Comparable hotel EBITDA attributable to the Company and OP unitholders	$	25,472		$	25,239		0.92	%	$	118,818		$	119,128		(0.26	)%

NOTES:

(1) The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2) All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates.

(3) See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

ALL HOTELS NOT UNDER RENOVATION:		Three Months Ended								Year Ended
		December 31,								December 31,
		2017			2016			% Variance		2017			2016			% Variance
	Total hotel revenue	$	50,206		$	44,215		13.55	%	$	217,169		$	195,160		11.28	%
	Non-comparable adjustments	(2,942		)	4,948					(4,164		)	16,563
	Comparable total hotel revenue	$	47,264		$	49,163		(3.86	)%	$	213,005		$	211,723		0.61	%
	Hotel EBITDA	$	14,568		$	14,398		1.18	%	$	70,536		$	66,585		5.93	%
	Non-comparable adjustments	(1,076		)	635					(1,379		)	2,475
	Comparable hotel EBITDA	$	13,492		$	15,033		(10.25	)%	$	69,157		$	69,060		0.14	%
	Hotel EBITDA margin	29.02		%	32.56		%	(3.54	)%	32.48		%	34.12		%	(1.64	)%
	Comparable hotel EBITDA margin	28.55		%	30.58		%	(2.03	)%	32.47		%	32.62		%	(0.15	)%
	Hotel EBITDA adjustments attributable to consolidated noncontrolling interests	$	675		$	698		(3.24	)%	$	3,685		$	3,231		14.07	%
	Hotel EBITDA attributable to the Company and OP unitholders	$	13,893		$	13,700		1.41	%	$	66,851		$	63,354		5.52	%
	Comparable hotel EBITDA attributable to the Company and OP unitholders	$	12,817		$	14,335		(10.59	)%	$	65,472		$	65,829		(0.54	)%

NOTES:

(1) The above comparable information assumes the seven hotel properties owned and included in the Company's operations at December 31, 2017, and not under renovation during the three months ended December 31, 2017, were owned as of the beginning of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2) All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates.

(3)    See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

(4) Excluded Hotels Under Renovation:

Capital Hilton Washington D.C., Chicago Sofitel Magnificent Mile, Key West Pier House Resort, San Francisco Courtyard Downtown, St. Thomas Ritz-Carlton

12

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

SELECTED FINANCIAL AND OPERATING INFORMATION BY PROPERTY

(in thousands, except operating information)

(unaudited)

		Three Months Ended December 31,
		Actual			Non-comparable Adjustments			Comparable			Actual			Non-comparable Adjustments			Comparable			Actual		Comparable
		2017			2017			2017			2016			2016			2016			% Variance		% Variance
CAPITAL HILTON WASHINGTON D.C.
	Selected Financial Information:
	Rooms revenue	$	9,417		$	—		$	9,417		$	10,055		$	—		$	10,055		(6.35	)%	(6.35	)%
	Total hotel revenue	$	13,535		$	—		$	13,535		$	14,389		$	—		$	14,389		(5.94	)%	(5.94	)%
	Hotel EBITDA	$	3,780		$	—		$	3,780		$	4,096		$	—		$	4,096		(7.71	)%	(7.71	)%
	Hotel EBITDA margin	27.93		%				27.93		%	28.47		%				28.47		%	(0.54	)%	(0.54	)%
	Selected Operating Information:
	RevPAR	$	186.11		$	—		$	186.11		$	198.71		$	—		$	198.71		(6.34	)%	(6.34	)%
	Occupancy	82.00		%	—		%	82.00		%	87.00		%	—		%	87.00		%	(5.75	)%	(5.75	)%
	ADR	$	226.96		$	—		$	226.96		$	228.39		$	—		$	228.39		(0.63	)%	(0.63	)%
LA JOLLA HILTON TORREY PINES
	Selected Financial Information:
	Rooms revenue	$	5,155		$	—		$	5,155		$	5,184		$	—		$	5,184		(0.56	)%	(0.56	)%
	Total hotel revenue	$	9,500		$	—		$	9,500		$	10,062		$	—		$	10,062		(5.59	)%	(5.59	)%
	Hotel EBITDA	$	2,700		$	—		$	2,700		$	2,790		$	—		$	2,790		(3.23	)%	(3.23	)%
	Hotel EBITDA margin	28.42		%				28.42		%	27.73		%				27.73		%	0.69	%	0.69	%
	Selected Operating Information:
	RevPAR	$	142.22		$	—		$	142.22		$	143.01		$	—		$	143.01		(0.55	)%	(0.55	)%
	Occupancy	79.05		%	—		%	79.05		%	82.73		%	—		%	82.73		%	(4.45	)%	(4.45	)%
	ADR	$	179.91		$	—		$	179.91		$	172.86		$	—		$	172.86		4.08	%	4.08	%
CHICAGO SOFITEL MAGNIFICENT MILE
	Selected Financial Information:
	Rooms revenue	$	6,400		$	—		$	6,400		$	7,032		$	—		$	7,032		(8.99	)%	(8.99	)%
	Total hotel revenue	$	8,751		$	—		$	8,751		$	9,577		$	—		$	9,577		(8.62	)%	(8.62	)%
	Hotel EBITDA	$	1,575		$	—		$	1,575		$	2,187		$	—		$	2,187		(27.98	)%	(27.98	)%
	Hotel EBITDA margin	18.00		%				18.00		%	22.84		%				22.84		%	(4.84	)%	(4.84	)%
	Selected Operating Information:
	RevPAR	$	167.65		$	—		$	167.65		$	184.17		$	—		$	184.17		(8.97	)%	(8.97	)%
	Occupancy	80.23		%	—		%	80.23		%	84.04		%	—		%	84.04		%	(4.53	)%	(4.53	)%
	ADR	$	208.96		$	—		$	208.96		$	219.15		$	—		$	219.15		(4.65	)%	(4.65	)%
BARDESSONO HOTEL AND SPA
	Selected Financial Information:
	Rooms revenue	$	2,557		$	—		$	2,557		$	3,629		$	—		$	3,629		(29.54	)%	(29.54	)%
	Total hotel revenue	$	3,442		$	—		$	3,442		$	4,868		$	—		$	4,868		(29.29	)%	(29.29	)%
	Hotel EBITDA	$	494		$	—		$	494		$	1,431		$	—		$	1,431		(65.48	)%	(65.48	)%
	Hotel EBITDA margin	14.35		%				14.35		%	29.40		%				29.40		%	(15.05	)%	(15.05	)%
	Selected Operating Information:
	RevPAR	$	448.27		$	—		$	448.27		$	636.22		$	—		$	636.22		(29.54	)%	(29.54	)%
	Occupancy	62.83		%	—		%	62.83		%	83.59		%	—		%	83.59		%	(24.84	)%	(24.84	)%
	ADR	$	713.43		$	—		$	713.43		$	761.11		$	—		$	761.11		(6.26	)%	(6.26	)%
KEY WEST PIER HOUSE RESORT
	Selected Financial Information:
	Rooms revenue	$	3,949		$	—		$	3,949		$	4,527		$	—		$	4,527		(12.77	)%	(12.77	)%
	Total hotel revenue	$	6,365		$	—		$	6,365		$	5,679		$	—		$	5,679		12.08	%	12.08	%
	Hotel EBITDA	$	3,457		$	—		$	3,457		$	2,469		$	—		$	2,469		40.02	%	40.02	%
	Hotel EBITDA margin	54.31		%				54.31		%	43.48		%				43.48		%	10.83	%	10.83	%
	Selected Operating Information:
	RevPAR	$	302.25		$	—		$	302.25		$	346.56		$	—		$	346.56		(12.79	)%	(12.79	)%
	Occupancy	70.06		%	—		%	70.06		%	83.40		%	—		%	83.40		%	(16.00	)%	(16.00	)%
	ADR	$	431.44		$	—		$	431.44		$	415.56		$	—		$	415.56		3.82	%	3.82	%

13

		Three Months Ended December 31,
		Actual			Non-comparable Adjustments			Comparable			Actual			Non-comparable Adjustments			Comparable			Actual		Comparable
		2017			2017			2017			2016			2016			2016			% Variance		% Variance
HOTEL YOUNTVILLE
	Selected Financial Information:
	Rooms revenue	$	2,085		$	—		$	2,085		$	—		$	3,382		$	3,382		—	%	(38.35	)%
	Total hotel revenue	$	2,546		$	—		$	2,546		$	—		$	4,011		$	4,011		—	%	(36.52	)%
	Hotel EBITDA	$	491		$	—		$	491		$	—		$	1,567		$	1,567		—	%	(68.67	)%
	Hotel EBITDA margin	19.29		%				19.29		%	—		%				39.07		%	19.29	%	(19.78	)%
	Selected Operating Information:
	RevPAR	$	283.36		$	—		$	283.36		$	—		$	459.41		$	459.41		—	%	(38.32	)%
	Occupancy	56.47		%	—		%	56.47		%	—		%	82.68		%	82.68		%	—	%	(31.70	)%
	ADR	$	501.82		$	—		$	501.82		$	—		$	555.67		$	555.67		—	%	(9.69	)%
PARK HYATT BEAVER CREEK
	Selected Financial Information:
	Rooms revenue	$	3,833		$	—		$	3,833		$	—		$	4,232		$	4,232		—	%	(9.43	)%
	Total hotel revenue	$	8,309		$	—		$	8,309		$	—		$	8,785		$	8,785		—	%	(5.42	)%
	Hotel EBITDA	$	1,181		$	—		$	1,181		$	—		$	1,766		$	1,766		—	%	(33.13	)%
	Hotel EBITDA margin	14.21		%				14.21		%	—		%				20.10		%	14.21	%	(5.89	)%
	Selected Operating Information:
	RevPAR	$	219.25		$	—		$	219.25		$	—		$	242.13		$	242.13		—	%	(9.45	)%
	Occupancy	46.70		%	—		%	46.70		%	—		%	50.14		%	50.14		%	—	%	(6.86	)%
	ADR	$	469.50		$	—		$	469.50		$	—		$	482.89		$	482.89		—	%	(2.77	)%
PHILADELPHIA COURTYARD DOWNTOWN
	Selected Financial Information:
	Rooms revenue	$	7,255		$	—		$	7,255		$	6,250		$	—		$	6,250		16.08	%	16.08	%
	Total hotel revenue	$	8,720		$	—		$	8,720		$	7,580		$	—		$	7,580		15.04	%	15.04	%
	Hotel EBITDA	$	3,518		$	—		$	3,518		$	2,794		$	—		$	2,794		25.91	%	25.91	%
	Hotel EBITDA margin	40.34		%				40.34		%	36.86		%				36.86		%	3.48	%	3.48	%
	Selected Operating Information:
	RevPAR	$	158.04		$	—		$	158.04		$	136.15		$	—		$	136.15		16.08	%	16.08	%
	Occupancy	81.69		%	—		%	81.69		%	79.86		%	—		%	79.86		%	2.29	%	2.29	%
	ADR	$	193.47		$	—		$	193.47		$	170.49		$	—		$	170.49		13.48	%	13.48	%
PLANO MARRIOTT LEGACY TOWN CENTER
	Selected Financial Information:
	Rooms revenue	$	1,858		$	(1,858	)	$	—		$	4,642		$	(4,642	)	$	—		(59.97	)%	—	%
	Total hotel revenue	$	2,942		$	(2,942	)	$	—		$	7,848		$	(7,848	)	$	—		(62.51	)%	—	%
	Hotel EBITDA	$	1,076		$	(1,076	)	$	—		$	2,698		$	(2,698	)	$	—		(60.12	)%	—	%
	Hotel EBITDA margin	36.57		%				—		%	34.38		%				—		%	2.19	%	—	%
	Selected Operating Information:
	RevPAR	$	148.30		$	(148.30	)	$	—		$	124.89		$	(124.89	)	$	—		18.74	%	—	%
	Occupancy	77.32		%	(77.32		)%	—		%	67.98		%	(67.98		)%	—		%	13.74	%	—	%
	ADR	$	191.81		$	(191.81	)	$	—		$	183.71		$	(183.71	)	$	—		4.41	%	—	%
SAN FRANCISCO COURTYARD DOWNTOWN
	Selected Financial Information:
	Rooms revenue	$	7,392		$	—		$	7,392		$	8,147		$	—		$	8,147		(9.27	)%	(9.27	)%
	Total hotel revenue	$	8,529		$	—		$	8,529		$	9,295		$	—		$	9,295		(8.24	)%	(8.24	)%
	Hotel EBITDA	$	2,436		$	—		$	2,436		$	1,987		$	—		$	1,987		22.60	%	22.60	%
	Hotel EBITDA margin	28.56		%				28.56		%	21.38		%				21.38		%	7.18	%	7.18	%
	Selected Operating Information:
	RevPAR	$	196.93		$	—		$	196.93		$	218.63		$	—		$	218.63		(9.93	)%	(9.93	)%
	Occupancy	77.26		%	—		%	77.26		%	88.07		%	—		%	88.07		%	(12.27	)%	(12.27	)%
	ADR	$	254.89		$	—		$	254.89		$	248.26		$	—		$	248.26		2.67	%	2.67	%

14

		Three Months Ended December 31,
		Actual			Non-comparable Adjustments			Comparable			Actual			Non-comparable Adjustments			Comparable			Actual		Comparable
		2017			2017			2017			2016			2016			2016			% Variance		% Variance
SEATTLE MARRIOTT WATERFRONT
	Selected Financial Information:
	Rooms revenue	$	6,385		$	—		$	6,385		$	5,693		$	—		$	5,693		12.16	%	12.16	%
	Total hotel revenue	$	8,665		$	—		$	8,665		$	8,212		$	—		$	8,212		5.52	%	5.52	%
	Hotel EBITDA	$	3,330		$	—		$	3,330		$	3,048		$	—		$	3,048		9.25	%	9.25	%
	Hotel EBITDA margin	38.43		%				38.43		%	37.12		%				37.12		%	1.31	%	1.31	%
	Selected Operating Information:
	RevPAR	$	192.21		$	—		$	192.21		$	172.85		$	—		$	172.85		11.20	%	11.20	%
	Occupancy	82.98		%	—		%	82.98		%	78.97		%	—		%	78.97		%	5.08	%	5.08	%
	ADR	$	231.63		$	—		$	231.63		$	218.89		$	—		$	218.89		5.82	%	5.82	%
ST. THOMAS RITZ-CARLTON
	Selected Financial Information:
	Rooms revenue	$	1,458		$	—		$	1,458		$	6,141		$	—		$	6,141		(76.26	)%	(76.26	)%
	Total hotel revenue	$	5,128		$	—		$	5,128		$	10,797		$	—		$	10,797		(52.51	)%	(52.51	)%
	Hotel EBITDA	$	2,352		$	—		$	2,352		$	1,189		$	—		$	1,189		97.81	%	97.81	%
	Hotel EBITDA margin	45.87		%				45.87		%	11.01		%				11.01		%	34.86	%	34.86	%
	Selected Operating Information:
	RevPAR	$	229.69		$	—		$	229.69		$	370.82		$	—		$	370.82		(38.06	)%	(38.06	)%
	Occupancy	75.06		%	—		%	75.06		%	69.38		%	—		%	69.38		%	8.19	%	8.19	%
	ADR	$	306.00		$	—		$	306.00		$	534.49		$	—		$	534.49		(42.75	)%	(42.75	)%
TAMPA RENAISSANCE
	Selected Financial Information:
	Rooms revenue	$	4,059		$	—		$	4,059		$	3,766		$	—		$	3,766		7.78	%	7.78	%
	Total hotel revenue	$	6,082		$	—		$	6,082		$	5,645		$	—		$	5,645		7.74	%	7.74	%
	Hotel EBITDA	$	1,778		$	—		$	1,778		$	1,637		$	—		$	1,637		8.61	%	8.61	%
	Hotel EBITDA margin	29.23		%				29.23		%	29.00		%				29.00		%	0.23	%	0.23	%
	Selected Operating Information:
	RevPAR	$	150.59		$	—		$	150.59		$	139.77		$	—		$	139.77		7.74	%	7.74	%
	Occupancy	78.80		%	—		%	78.80		%	77.38		%	—		%	77.38		%	1.84	%	1.84	%
	ADR	$	191.10		$	—		$	191.10		$	180.63		$	—		$	180.63		5.80	%	5.80	%
PRIME PROPERTIES TOTAL
	Selected Financial Information:
	Rooms revenue	$	61,803		$	(1,858	)	$	59,945		$	65,066		$	2,972		$	68,038		(5.01	)%	(11.89	)%
	Total hotel revenue	$	92,514		$	(2,942	)	$	89,572		$	93,952		$	4,948		$	98,900		(1.53	)%	(9.43	)%
	Hotel EBITDA	$	28,168		$	(1,076	)	$	27,092		$	26,326		$	635		$	26,961		7.00	%	0.49	%
	Hotel EBITDA margin	30.45		%				30.25		%	28.02		%				27.26		%	2.43	%	2.99	%
	Selected Operating Information:
	RevPAR	$	186.65		$	(148.30	)	$	188.15		$	191.04		$	(241.07	)	$	207.27		(2.30	)%	(9.22	)%
	Occupancy	77.19		%	(77.32		)%	77.18		%	80.70		%	84.50		%	80.56		%	(4.35	)%	(4.20	)%
	ADR	$	241.81		$	(191.81	)	$	243.78		$	236.73		$	(285.30	)	$	257.29		2.15	%	(5.25	)%

NOTES:

(1) The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2) All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates.

(3) See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

(4) Table excludes Seattle Courtyard Downtown which was sold on July 1, 2016.

15

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

SELECTED FINANCIAL AND OPERATING INFORMATION BY PROPERTY

(in thousands, except operating information)

(unaudited)

		Year Ended December 31,
		Actual			Non-comparable Adjustments			Comparable			Actual			Non-comparable Adjustments			Comparable			Actual		Comparable
		2017			2017			2017			2016			2016			2016			% Variance		% Variance
CAPITAL HILTON WASHINGTON D.C.
	Selected Financial Information:
	Rooms revenue	$	42,325		$	—		$	42,325		$	41,137		$	—		$	41,137		2.89	%	2.89	%
	Total hotel revenue	$	59,316		$	—		$	59,316		$	58,612		$	—		$	58,612		1.20	%	1.20	%
	Hotel EBITDA	$	17,672		$	—		$	17,672		$	17,422		$	—		$	17,422		1.43	%	1.43	%
	Hotel EBITDA margin	29.79		%				29.79		%	29.72		%				29.72		%	0.07	%	0.07	%
	Selected Operating Information:
	RevPAR	$	210.83		$	—		$	210.83		$	204.36		$	—		$	204.36		3.17	%	3.17	%
	Occupancy	88.63		%	—		%	88.63		%	88.59		%	—		%	88.59		%	0.05	%	0.05	%
	ADR	$	237.87		$	—		$	237.87		$	230.69		$	—		$	230.69		3.11	%	3.11	%
LA JOLLA HILTON TORREY PINES
	Selected Financial Information:
	Rooms revenue	$	24,683		$	—		$	24,683		$	23,564		$	—		$	23,564		4.75	%	4.75	%
	Total hotel revenue	$	43,949		$	—		$	43,949		$	42,058		$	—		$	42,058		4.50	%	4.50	%
	Hotel EBITDA	$	14,740		$	—		$	14,740		$	12,922		$	—		$	12,922		14.07	%	14.07	%
	Hotel EBITDA margin	33.54		%				33.54		%	30.72		%				30.72		%	2.82	%	2.82	%
	Selected Operating Information:
	RevPAR	$	171.64		$	—		$	171.64		$	163.41		$	—		$	163.41		5.04	%	5.04	%
	Occupancy	83.65		%	—		%	83.65		%	83.83		%	—		%	83.83		%	(0.21	)%	(0.21	)%
	ADR	$	205.19		$	—		$	205.19		$	194.93		$	—		$	194.93		5.26	%	5.26	%
CHICAGO SOFITEL MAGNIFICENT MILE
	Selected Financial Information:
	Rooms revenue	$	24,841		$	—		$	24,841		$	27,026		$	—		$	27,026		(8.08	)%	(8.08	)%
	Total hotel revenue	$	33,302		$	—		$	33,302		$	36,879		$	—		$	36,879		(9.70	)%	(9.70	)%
	Hotel EBITDA	$	5,778		$	—		$	5,778		$	8,400		$	—		$	8,400		(31.21	)%	(31.21	)%
	Hotel EBITDA margin	17.35		%				17.35		%	22.78		%				22.78		%	(5.43	)%	(5.43	)%
	Selected Operating Information:
	RevPAR	$	164.00		$	—		$	164.00		$	177.93		$	—		$	177.93		(7.83	)%	(7.83	)%
	Occupancy	80.92		%	—		%	80.92		%	82.42		%	—		%	82.42		%	(1.82	)%	(1.82	)%
	ADR	$	202.66		$	—		$	202.66		$	215.89		$	—		$	215.89		(6.13	)%	(6.13	)%
BARDESSONO HOTEL AND SPA
	Selected Financial Information:
	Rooms revenue	$	13,414		$	—		$	13,414		$	14,047		$	—		$	14,047		(4.51	)%	(4.51	)%
	Total hotel revenue	$	17,701		$	—		$	17,701		$	18,934		$	—		$	18,934		(6.51	)%	(6.51	)%
	Hotel EBITDA	$	4,441		$	—		$	4,441		$	5,029		$	—		$	5,029		(11.69	)%	(11.69	)%
	Hotel EBITDA margin	25.09		%				25.09		%	26.56		%				26.56		%	(1.47	)%	(1.47	)%
	Selected Operating Information:
	RevPAR	$	592.77		$	—		$	592.77		$	619.02		$	—		$	619.02		(4.24	)%	(4.24	)%
	Occupancy	76.96		%	—		%	76.96		%	84.37		%	—		%	84.37		%	(8.78	)%	(8.78	)%
	ADR	$	770.19		$	—		$	770.19		$	733.66		$	—		$	733.66		4.98	%	4.98	%
KEY WEST PIER HOUSE RESORT
	Selected Financial Information:
	Rooms revenue	$	17,202		$	—		$	17,202		$	18,766		$	—		$	18,766		(8.33	)%	(8.33	)%
	Total hotel revenue	$	23,232		$	—		$	23,232		$	23,435		$	—		$	23,435		(0.87	)%	(0.87	)%
	Hotel EBITDA	$	10,982		$	—		$	10,982		$	10,229		$	—		$	10,229		7.36	%	7.36	%
	Hotel EBITDA margin	47.27		%				47.27		%	43.65		%				43.65		%	3.62	%	3.62	%
	Selected Operating Information:
	RevPAR	$	331.87		$	—		$	331.87		$	361.08		$	—		$	361.08		(8.09	)%	(8.09	)%
	Occupancy	77.07		%	—		%	77.07		%	87.90		%	—		%	87.90		%	(12.32	)%	(12.32	)%
	ADR	$	430.59		$	—		$	430.59		$	410.79		$	—		$	410.79		4.82	%	4.82	%

16

		Year Ended December 31,
		Actual			Non-comparable Adjustments			Comparable			Actual			Non-comparable Adjustments			Comparable			Actual		Comparable
		2017			2017			2017			2016			2016			2016			% Variance		% Variance
HOTEL YOUNTVILLE
	Selected Financial Information:
	Rooms revenue	$	8,140		$	3,473		$	11,613		$	—		$	13,698		$	13,698		—	%	(15.22	)%
	Total hotel revenue	$	9,599		$	4,276		$	13,875		$	—		$	16,410		$	16,410		—	%	(15.45	)%
	Hotel EBITDA	$	3,924		$	1,233		$	5,157		$	—		$	6,960		$	6,960		—	%	(25.91	)%
	Hotel EBITDA margin	40.88		%				37.17		%	—		%				42.41		%	40.88	%	(5.24	)%
	Selected Operating Information:
	RevPAR	$	433.00		$	333.88		$	397.69		$	—		$	467.82		$	467.82		—	%	(14.99	)%
	Occupancy	71.78		%	75.52		%	73.11		%	—		%	86.42		%	86.42		%	—	%	(15.40	)%
	ADR	$	603.21		$	442.11		$	543.95		$	—		$	541.31		$	541.31		—	%	0.49	%
PARK HYATT BEAVER CREEK
	Selected Financial Information:
	Rooms revenue	$	8,753		$	10,034		$	18,787		$	—		$	18,777		$	18,777		—	%	0.05	%
	Total hotel revenue	$	21,969		$	18,810		$	40,779		$	—		$	40,149		$	40,149		—	%	1.57	%
	Hotel EBITDA	$	2,419		$	6,968		$	9,387		$	—		$	9,700		$	9,700		—	%	(3.23	)%
	Hotel EBITDA margin	11.01		%				23.02		%	—		%				24.16		%	11.01	%	(1.14	)%
	Selected Operating Information:
	RevPAR	$	167.51		$	586.82		$	270.90		$	—		$	270.02		$	270.02		—	%	0.33	%
	Occupancy	53.94		%	83.74		%	61.29		%	—		%	62.03		%	62.03		%	—	%	(1.19	)%
	ADR	$	310.52		$	700.74		$	441.98		$	—		$	435.33		$	435.33		—	%	1.53	%
PHILADELPHIA COURTYARD DOWNTOWN
	Selected Financial Information:
	Rooms revenue	$	26,337		$	—		$	26,337		$	27,260		$	—		$	27,260		(3.39	)%	(3.39	)%
	Total hotel revenue	$	31,862		$	—		$	31,862		$	32,643		$	—		$	32,643		(2.39	)%	(2.39	)%
	Hotel EBITDA	$	12,221		$	—		$	12,221		$	12,557		$	—		$	12,557		(2.68	)%	(2.68	)%
	Hotel EBITDA margin	38.36		%				38.36		%	38.47		%				38.47		%	(0.11	)%	(0.11	)%
	Selected Operating Information:
	RevPAR	$	144.60		$	—		$	144.60		$	149.26		$	—		$	149.26		(3.12	)%	(3.12	)%
	Occupancy	81.83		%	—		%	81.83		%	81.80		%	—		%	81.80		%	0.04	%	0.04	%
	ADR	$	176.71		$	—		$	176.71		$	182.46		$	—		$	182.46		(3.15	)%	(3.15	)%
PLANO MARRIOTT LEGACY TOWN CENTER
	Selected Financial Information:
	Rooms revenue	$	16,763		$	(16,763	)	$	—		$	19,899		$	(19,899	)	$	—		(15.76	)%	—	%
	Total hotel revenue	$	27,250		$	(27,250	)	$	—		$	32,001		$	(32,001	)	$	—		(14.85	)%	—	%
	Hotel EBITDA	$	9,570		$	(9,570	)	$	—		$	11,021		$	(11,021	)	$	—		(13.17	)%	—	%
	Hotel EBITDA margin	35.12		%				—		%	34.44		%				—		%	0.68	%	—	%
	Selected Operating Information:
	RevPAR	$	136.49		$	(136.49	)	$	—		$	134.58		$	(134.58	)	$	—		1.42	%	—	%
	Occupancy	72.76		%	(72.76		)%	—		%	70.57		%	(70.57		)%	—		%	3.10	%	—	%
	ADR	$	187.59		$	(187.59	)	$	—		$	190.70		$	(190.70	)	$	—		(1.63	)%	—	%
SAN FRANCISCO COURTYARD DOWNTOWN
	Selected Financial Information:
	Rooms revenue	$	32,109		$	—		$	32,109		$	36,249		$	—		$	36,249		(11.42	)%	(11.42	)%
	Total hotel revenue	$	36,929		$	—		$	36,929		$	41,365		$	—		$	41,365		(10.72	)%	(10.72	)%
	Hotel EBITDA	$	12,737		$	—		$	12,737		$	12,790		$	—		$	12,790		(0.41	)%	(0.41	)%
	Hotel EBITDA margin	34.49		%				34.49		%	30.92		%				30.92		%	3.57	%	3.57	%
	Selected Operating Information:
	RevPAR	$	216.12		$	—		$	216.12		$	244.54		$	—		$	244.54		(11.62	)%	(11.62	)%
	Occupancy	79.93		%	—		%	79.93		%	89.55		%	—		%	89.55		%	(10.74	)%	(10.74	)%
	ADR	$	270.38		$	—		$	270.38		$	273.07		$	—		$	273.07		(0.99	)%	(0.99	)%

17

		Year Ended December 31,
		Actual			Non-comparable Adjustments			Comparable			Actual			Non-comparable Adjustments			Comparable			Actual		Comparable
		2017			2017			2017			2016			2016			2016			% Variance		% Variance
SEATTLE MARRIOTT WATERFRONT
	Selected Financial Information:
	Rooms revenue	$	31,409		$	—		$	31,409		$	28,748		$	—		$	28,748		9.26	%	9.26	%
	Total hotel revenue	$	40,714		$	—		$	40,714		$	37,648		$	—		$	37,648		8.14	%	8.14	%
	Hotel EBITDA	$	16,209		$	—		$	16,209		$	15,115		$	—		$	15,115		7.24	%	7.24	%
	Hotel EBITDA margin	39.81		%				39.81		%	40.15		%				40.15		%	(0.34	)%	(0.34	)%
	Selected Operating Information:
	RevPAR	$	239.50		$	—		$	239.50		$	219.40		$	—		$	219.40		9.16	%	9.16	%
	Occupancy	87.99		%	—		%	87.99		%	83.07		%	—		%	83.07		%	5.92	%	5.92	%
	ADR	$	272.19		$	—		$	272.19		$	264.10		$	—		$	264.10		3.06	%	3.06	%
ST. THOMAS RITZ-CARLTON
	Selected Financial Information:
	Rooms revenue	$	23,171		$	—		$	23,171		$	27,795		$	—		$	27,795		(16.64	)%	(16.64	)%
	Total hotel revenue	$	43,957		$	—		$	43,957		$	50,278		$	—		$	50,278		(12.57	)%	(12.57	)%
	Hotel EBITDA	$	10,595		$	—		$	10,595		$	8,813		$	—		$	8,813		20.22	%	20.22	%
	Hotel EBITDA margin	24.10		%				24.10		%	17.53		%				17.53		%	6.57	%	6.57	%
	Selected Operating Information:
	RevPAR	$	442.26		$	—		$	442.26		$	421.90		$	—		$	421.90		4.83	%	4.83	%
	Occupancy	79.94		%	—		%	79.94		%	78.46		%	—		%	78.46		%	1.89	%	1.89	%
	ADR	$	553.27		$	—		$	553.27		$	537.75		$	—		$	537.75		2.89	%	2.89	%
TAMPA RENAISSANCE
	Selected Financial Information:
	Rooms revenue	$	16,859		$	—		$	16,859		$	16,384		$	—		$	16,384		2.90	%	2.90	%
	Total hotel revenue	$	24,125		$	—		$	24,125		$	23,881		$	—		$	23,881		1.02	%	1.02	%
	Hotel EBITDA	$	7,002		$	—		$	7,002		$	6,777		$	—		$	6,777		3.32	%	3.32	%
	Hotel EBITDA margin	29.02		%				29.02		%	28.38		%				28.38		%	0.64	%	0.64	%
	Selected Operating Information:
	RevPAR	$	157.65		$	—		$	157.65		$	152.79		$	—		$	152.79		3.18	%	3.18	%
	Occupancy	81.96		%	—		%	81.96		%	81.22		%	—		%	81.22		%	0.91	%	0.91	%
	ADR	$	192.34		$	—		$	192.34		$	188.12		$	—		$	188.12		2.24	%	2.24	%
PRIME PROPERTIES TOTAL
	Selected Financial Information:
	Rooms revenue	$	286,006		$	(3,256	)	$	282,750		$	287,844		$	5,607		$	293,451		(0.64	)%	(3.65	)%
	Total hotel revenue	$	413,905		$	(4,164	)	$	409,741		$	405,729		$	16,563		$	422,292		2.02	%	(2.97	)%
	Hotel EBITDA	$	128,300		$	(1,379	)	$	126,921		$	124,239		$	2,475		$	126,714		3.27	%	0.16	%
	Hotel EBITDA margin	31.00		%				30.98		%	30.62		%				30.01		%	0.38	%	0.97	%
	Selected Operating Information:
	RevPAR	$	206.42		$	(34.16	)	$	219.15		$	205.54		$	(59.31	)	$	224.71		0.43	%	(2.47	)%
	Occupancy	80.97		%	(70.49		)%	81.75		%	82.94		%	78.28		%	83.27		%	(2.38	)%	(1.83	)%
	ADR	$	254.92		$	(48.46	)	$	268.07		$	247.83		$	(75.76	)	$	269.85		2.86	%	(0.66	)%

NOTES:

(1) The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2) All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates.

(3) See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

(4) Table excludes Seattle Courtyard Downtown which was sold on July 1, 2016.

18

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

HOTEL REVENUE & EBITDA FOR TRAILING TWELVE MONTHS

(dollars in thousands)

(unaudited)

	Actual			Non-comparable Adjustments			Comparable			Actual			Non-comparable Adjustments			Comparable			Actual			Non-comparable Adjustments			Comparable			Actual			Non-comparable Adjustments		Comparable
	2017			2017			2017			2017			2017			2017			2017			2017			2017			2017			2017		2017
	4th Quarter			4th Quarter			4th Quarter			3rd Quarter			3rd Quarter			3rd Quarter			2nd Quarter			2nd Quarter			2nd Quarter			1st Quarter			1st Quarter		1st Quarter
Total Hotel Revenue	$	92,514		$	(2,942	)	$	89,572		$	108,080		$	(6,871	)	$	101,209		$	116,055		$	(7,307	)	$	108,748		$	97,256		$	12,956	$	110,212
Hotel EBITDA	$	28,168		$	(1,076	)	$	27,092		$	33,030		$	(2,402	)	$	30,628		$	38,371		$	(2,474	)	$	35,897		$	28,731		$	4,573	$	33,304
Hotel EBITDA Margin	30.45		%				30.25		%	30.56		%				30.26		%	33.06		%				33.01		%	29.54		%			30.22		%
EBITDA % of Total TTM	22.0		%				21.4		%	25.7		%				24.1		%	29.9		%				28.3		%	22.4		%			26.2		%
JV Interests in EBITDA	$	1,620		$	—		$	1,620		$	1,618		$	—		$	1,618		$	2,642		$	—		$	2,642		$	2,223		$	—	$	2,223
	Actual			Non-comparable Adjustments			Comparable
	2017			2017			2017
	TTM			TTM			TTM
Total Hotel Revenue	$	413,905		$	(4,164	)	$	409,741
Hotel EBITDA	$	128,300		$	(1,379	)	$	126,921
Hotel EBITDA Margin	31.00		%				30.98		%
EBITDA % of Total TTM	100.0		%				100.0		%
JV Interests in EBITDA	$	8,103		$	—		$	8,103

NOTES:

(1) The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2)    All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates.

(3)    See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

19

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

TOTAL ENTERPRISE VALUE

DECEMBER 31, 2017

(in thousands, except share price)

(unaudited)

	December 31, 2017
End of quarter common shares outstanding	32,120
Partnership units outstanding (common stock equivalents)	4,790
Combined common shares and partnership units outstanding	36,910
Common stock price at quarter end	$	9.73
Market capitalization at quarter end	$	359,134
Series B convertible preferred stock	$	124,146
Debt on balance sheet date	$	826,236
Joint venture partner's share of consolidated debt	$	(47,503	)
Net working capital (see below)	$	(161,359	)
Total enterprise value (TEV)	$	1,100,654
Ashford Inc. Investment:
Common stock owned at end of quarter	195
Common stock price at quarter end	$	93.00
Market value of Ashford Inc. investment	$	18,124
Cash and cash equivalents	$	131,827
Restricted cash	$	46,142
Accounts receivable, net	$	13,545
Insurance receivable	$	8,825
Prepaid expenses	$	3,525
Due from third-party hotel managers, net	$	3,015
Market value of Ashford Inc. investment	$	18,124
Total current assets	$	225,003
Accounts payable, net & accrued expenses	$	54,143
Dividends payable	$	8,146
Due to affiliates, net	$	1,355
Total current liabilities	$	63,644
Net working capital*	$	161,359

* Includes the Company's pro rata share of net working capital in joint ventures.

20

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

ANTICIPATED CAPITAL EXPENDITURES CALENDAR (a)

		2017				2018
	Rooms	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter
		Actual	Actual	Actual	Actual	Estimated	Estimated	Estimated	Estimated
Capital Hilton Washington D.C.	550				x	x		x	x
Chicago Sofitel Magnificent Mile	415	x			x	x	x
Key West Pier House Resort	142			x	x
Philadelphia Courtyard Downtown	499	x							x
San Francisco Courtyard Downtown	405	x	x	x	x	x	x	x	x
St. Thomas Ritz-Carlton	180			x	x	x	x	x	x
Total		3	1	3	5	4	3	3	4

(a) Only hotels which have had or are expected to have significant capital expenditures that could result in displacement in 2017-2018 are included in this table.

21

Exhibit 1

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)

	2017			2017			2017			2017			December 31, 2017
	4th Quarter			3rd Quarter			2nd Quarter			1st Quarter			TTM
Net income (loss)	$	35,206		$	10,705		$	21,607		$	14,951		$	82,469
(Income) loss from consolidated entities attributable to noncontrolling interest	(1,035		)	(872		)	(1,825		)	(1,444		)	(5,176		)
Net income (loss) attributable to the Company	34,171			9,833			19,782			13,507			77,293
Non-property adjustments	(23,720		)	1,008			—			—			(22,712		)
Interest income	(13		)	(18		)	(10		)	(10		)	(51		)
Interest expense	2,986			2,744			2,204			1,280			9,214
Amortization of loan costs	310			307			271			130			1,018
Depreciation and amortization	12,705			14,134			13,468			11,851			52,158
Income tax expense (benefit)	(607		)	(404		)	366			133			(512		)
Non-hotel EBITDA ownership expense	1,301			4,554			465			396			6,716
Income (loss) from consolidated entities attributable to noncontrolling interest	1,035			872			1,825			1,444			5,176
Hotel EBITDA including amounts attributable to noncontrolling interest	28,168			33,030			38,371			28,731			128,300
Non-comparable adjustments	(1,076		)	(2,402		)	(2,474		)	4,573			(1,379		)
Comparable hotel EBITDA	$	27,092		$	30,628		$	35,897		$	33,304		$	126,921

22

Exhibit 1

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)

	Three Months Ended December 31, 2017
	Capital Hilton Washington D.C.			La Jolla Hilton Torrey Pines			Chicago Sofitel Magnificent Mile			Bardessono Hotel & Spa			Key West Pier House Resort			Hotel Yountville			Park Hyatt Beaver Creek			Philadelphia Courtyard Downtown		Plano Marriott Legacy Town Center			San Francisco Courtyard Downtown		Seattle Courtyard Downtown		Seattle Marriott Waterfront			St. Thomas Ritz-Carlton			Tampa Renaissance			Hotel Total			Corporate / Allocated			Ashford Hospitality Prime, Inc.
Net income (loss)	$	2,003		$	1,921		$	(502	)	$	(745	)	$	2,416		$	(744	)	$	(484	)	$	1,927	$	24,587		$	512	$	—	$	2,240		$	1,226		$	849		$	35,206		$	(6,762	)	$	28,444
(Income) loss from consolidated entities attributable to noncontrolling interest	(534		)	(501		)	—			—			—			—			—			—		—			—		—		—			—			—			(1,035		)	507			(528		)
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership	—			—			—			—			—			—			—			—		—			—		—		—			—			—			—			(2,996		)	(2,996		)
Net income (loss) attributable to the Company	1,469			1,420			(502		)	(745		)	2,416			(744		)	(484		)	1,927		24,587			512		—		2,240			1,226			849			34,171			(9,251		)	24,920
Non-property adjustments	—			—			—			—			505			—			—			—		(23,797		)	—		—		—			(428		)	—			(23,720		)	23,720			—
Interest income	(2		)	(6		)	—			—			—			—			—			—		—			—		—		(3		)	(1		)	(1		)	(13		)	(202		)	(215		)
Interest expense	—			—			733			388			—			499			697			—		—			—		—		—			669			—			2,986			6,059			9,045
Amortization of loan cost	—			—			—			35			—			34			131			—		—			—		—		—			110			—			310			839			1,149
Depreciation and amortization	1,696			1,468			1,290			647			712			655			824			1,540		135			1,486		—		1,047			265			940			12,705			(16		)	12,689
Income tax expense (benefit)	—			(593		)	—			—			—			—			—			11		—			—		—		—			(25		)	—			(607		)	(249		)	(856		)
Non-hotel EBITDA ownership expense	83			(90		)	54			169			(176		)	47			13			40		151			438		—		46			536			(10		)	1,301			(1,301		)	—
Income (loss) from consolidated entities attributable to noncontrolling interest	534			501			—			—			—			—			—			—		—			—		—		—			—			—			1,035			(1,035		)	—
Hotel EBITDA including amounts attributable to noncontrolling interest	3,780			2,700			1,575			494			3,457			491			1,181			3,518		1,076			2,436		—		3,330			2,352			1,778			28,168			18,564			46,732
Less: EBITDA adjustments attributable to noncontrolling interest	(411		)	(174		)	—			—			—			—			—			—		—			—		—		—			—			—			(585		)	(505		)	(1,090		)
(Income) loss from consolidated entities attributable to noncontrolling interest	(534		)	(501		)	—			—			—			—			—			—		—			—		—		—			—			—			(1,035		)	1,035			—
Net income (loss) attributable to redeemable noncontrolling interests in operating partnership	—			—			—			—			—			—			—			—		—			—		—		—			—			—			—			2,996			2,996
Hotel EBITDA attributable to the Company and OP unitholders	$	2,835		$	2,025		$	1,575		$	494		$	3,457		$	491		$	1,181		$	3,518	$	1,076		$	2,436	$	—	$	3,330		$	2,352		$	1,778		$	26,548		$	22,090		$	48,638
Non-comparable adjustments	—			—			—			—			—			—			—			—		(1,076		)	—		—		—			—			—			(1,076		)
Comparable hotel EBITDA	$	3,780		$	2,700		$	1,575		$	494		$	3,457		$	491		$	1,181		$	3,518	$	—		$	2,436	$	—	$	3,330		$	2,352		$	1,778		$	27,092
ALL HOTELS NOT UNDER RENOVATION:
Hotel EBITDA including amounts attributable to noncontrolling interest	$	—		$	2,700		$	—		$	494		$	—		$	491		$	1,181		$	3,518	$	1,076		$	—	$	—	$	3,330		$	—		$	1,778		$	14,568
Non-comparable adjustments	—			—			—			—			—			—			—			—		(1,076		)	—		—		—			—			—			(1,076		)
Comparable hotel EBITDA	$	—		$	2,700		$	—		$	494		$	—		$	491		$	1,181		$	3,518	$	—		$	—	$	—	$	3,330		$	—		$	1,778		$	13,492

NOTES:

(1) The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2)    All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates.

(3) Excluded Hotels Under Renovation:

Capital Hilton Washington D.C., Chicago Sofitel Magnificent Mile, Key West Pier House Resort, San Francisco Courtyard Downtown, St. Thomas Ritz-Carlton

23

Exhibit 1

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)

	Three Months Ended December 31, 2016
	Capital Hilton Washington D.C.			La Jolla Hilton Torrey Pines			Chicago Sofitel Magnificent Mile		Bardessono Hotel & Spa		Key West Pier House Resort		Hotel Yountville		Park Hyatt Beaver Creek		Philadelphia Courtyard Downtown			Plano Marriott Legacy Town Center			San Francisco Courtyard Downtown			Seattle Courtyard Downtown		Seattle Marriott Waterfront			St. Thomas Ritz-Carlton			Tampa Renaissance			Hotel Total			Corporate / Allocated			Ashford Hospitality Prime, Inc.
Net income (loss)	$	2,448		$	1,204		$	586	$	663	$	1,781	$	—	$	—	$	818		$	1,533		$	1,160		$	—	$	2,078		$	(353	)	$	697		$	12,615		$	(11,770	)	$	845
(Income) loss from consolidated entities attributable to noncontrolling interest	(645		)	(326		)	—		—		—		—		—		—			—			—			—		—			—			—			(971		)	435			(536		)
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership	—			—			—		—		—		—		—		—			—			—			—		—			—			—			—			95			95
Net income (loss) attributable to the Company	1,803			878			586		663		1,781		—		—		818			1,533			1,160			—		2,078			(353		)	697			11,644			(11,240		)	404
Non-property adjustments	—			—			—		—		—		—		—		—			—			—			—		—			1			—			1			(1		)	—
Interest income	—			—			—		—		—		—		—		(1		)	(1		)	(4		)	—		(3		)	(1		)	—			(10		)	(25		)	(35		)
Interest expense	—			—			586		—		—		—		—		496			—			—			—		—			590			—			1,672			7,380			9,052
Amortization of loan cost	—			—			—		—		—		—		—		8			—			—			—		—			127			—			135			628			763
Depreciation and amortization	1,582			1,512			951		610		687		—		—		1,470			1,174			825			—		964			831			949			11,555			—			11,555
Income tax expense (benefit)	29			(32		)	—		—		—		—		—		(2		)	—			—			—		—			(16		)	—			(21		)	573			552
Non-hotel EBITDA ownership expense	37			106			64		158		1		—		—		5			(8		)	6			—		9			10			(9		)	379			(379		)	—
Income (loss) from consolidated entities attributable to noncontrolling interest	645			326			—		—		—		—		—		—			—			—			—		—			—			—			971			(971		)	—
Hotel EBITDA including amounts attributable to noncontrolling interest	4,096			2,790			2,187		1,431		2,469		—		—		2,794			2,698			1,987			—		3,048			1,189			1,637			26,326			(4,035		)	22,291
Less: EBITDA adjustments attributable to noncontrolling interest	(379		)	(372		)	—		—		—		—		—		—			—			—			—		—			—			—			(751		)	(388		)	(1,139		)
(Income) loss from consolidated entities attributable to noncontrolling interest	(645		)	(326		)	—		—		—		—		—		—			—			—			—		—			—			—			(971		)	971			—
Net income (loss) attributable to redeemable noncontrolling interests in operating partnership	—			—			—		—		—		—		—		—			—			—			—		—			—			—			—			(95		)	(95		)
Hotel EBITDA attributable to the Company and OP unitholders	$	3,072		$	2,092		$	2,187	$	1,431	$	2,469	$	—	$	—	$	2,794		$	2,698		$	1,987		$	—	$	3,048		$	1,189		$	1,637		$	24,604		$	(3,547	)	$	21,057
Non-comparable adjustments	—			—			—		—		—		1,567		1,766		—			(2,698		)	—			—		—			—			—			635
Comparable hotel EBITDA	$	4,096		$	2,790		$	2,187	$	1,431	$	2,469	$	1,567	$	1,766	$	2,794		$	—		$	1,987		$	—	$	3,048		$	1,189		$	1,637		$	26,961
ALL HOTELS NOT UNDER RENOVATION:
Hotel EBITDA including amounts attributable to noncontrolling interest	$	—		$	2,790		$	—	$	1,431	$	—	$	—	$	—	$	2,794		$	2,698		$	—		$	—	$	3,048		$	—		$	1,637		$	14,398
Non-comparable adjustments	—			—			—		—		—		1,567		1,766		—			(2,698		)	—			—		—			—			—			635
Comparable hotel EBITDA	$	—		$	2,790		$	—	$	1,431	$	—	$	1,567	$	1,766	$	2,794		$	—		$	—		$	—	$	3,048		$	—		$	1,637		$	15,033

NOTES:

(1) The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2)    All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates.

(3) Excluded Hotels Under Renovation:

Capital Hilton Washington D.C., Chicago Sofitel Magnificent Mile, Key West Pier House Resort, San Francisco Courtyard Downtown, St. Thomas Ritz-Carlton

24

Exhibit 1

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)

	Year Ended December 31, 2017
	Capital Hilton Washington D.C.			La Jolla Hilton Torrey Pines			Chicago Sofitel Magnificent Mile			Bardessono Hotel & Spa		Key West Pier House Resort		Hotel Yountville		Park Hyatt Beaver Creek			Philadelphia Courtyard Downtown			Plano Marriott Legacy Town Center			San Francisco Courtyard Downtown			Seattle Courtyard Downtown			Seattle Marriott Waterfront			St. Thomas Ritz-Carlton			Tampa Renaissance			Hotel Total			Corporate / Allocated			Ashford Hospitality Prime, Inc.
Net income (loss)	$	10,489		$	9,333		$	(1,613	)	$	640	$	6,235	$	803	$	(2,546	)	$	5,884		$	29,398		$	7,275		$	10		$	11,999		$	1,329		$	3,233		$	82,469		$	(54,145	)	$	28,324
(Income) loss from consolidated entities attributable to noncontrolling interest	(2,754		)	(2,422		)	—			—		—		—		—			—			—			—			—			—			—			—			(5,176		)	1,912			(3,264		)
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership	—			—			—			—		—		—		—			—			—			—			—			—			—			—			—			(2,038		)	(2,038		)
Net income (loss) attributable to the Company	7,735			6,911			(1,613		)	640		6,235		803		(2,546		)	5,884			29,398			7,275			10			11,999			1,329			3,233			77,293			(54,271		)	23,022
Non-property adjustments	—			—			—			—		823		—		—			—			(23,797		)	—			—			—			252			10			(22,712		)	22,712			—
Interest income	(17		)	(12		)	—			—		—		—		—			(1		)	—			(4		)	—			(12		)	(4		)	(1		)	(51		)	(639		)	(690		)
Interest expense	—			—			2,738			573		—		1,249		2,032			54			—			—			—			—			2,568			—			9,214			24,820			34,034
Amortization of loan cost	—			—			—			46		—		78		388			—			—			—			—			—			506			—			1,018			3,885			4,903
Depreciation and amortization	6,510			5,976			4,578			2,533		2,850		1,674		2,456			6,082			3,796			4,918			—			4,081			2,949			3,755			52,158			104			52,262
Income tax expense (benefit)	—			(532		)	(1		)	—		—		—		—			22			(1		)	—			—			—			—			—			(512		)	(10		)	(522		)
Non-hotel EBITDA ownership expense	690			(25		)	76			649		1,074		120		89			180			174			548			—			141			2,995			5			6,716			(6,716		)	—
Income (loss) from consolidated entities attributable to noncontrolling interest	2,754			2,422			—			—		—		—		—			—			—			—			—			—			—			—			5,176			(5,176		)	—
Hotel EBITDA including amounts attributable to noncontrolling interest	17,672			14,740			5,778			4,441		10,982		3,924		2,419			12,221			9,570			12,737			10			16,209			10,595			7,002			128,300			(15,291		)	113,009
Less: EBITDA adjustments attributable to noncontrolling interest	(1,664		)	(1,263		)	—			—		—		—		—			—			—			—			—			—			—			—			(2,927		)	(1,742		)	(4,669		)
(Income) loss from consolidated entities attributable to noncontrolling interest	(2,754		)	(2,422		)	—			—		—		—		—			—			—			—			—			—			—			—			(5,176		)	5,176			—
Net income (loss) attributable to redeemable noncontrolling interests in operating partnership	—			—			—			—		—		—		—			—			—			—			—			—			—			—			—			2,038			2,038
Hotel EBITDA attributable to the Company and OP unitholders	$	13,254		$	11,055		$	5,778		$	4,441	$	10,982	$	3,924	$	2,419		$	12,221		$	9,570		$	12,737		$	10		$	16,209		$	10,595		$	7,002		$	120,197		$	(9,819	)	$	110,378
Non-comparable adjustments	—			—			—			—		—		1,233		6,968			—			(9,570		)	—			(10		)	—			—			—			(1,379		)
Comparable hotel EBITDA	$	17,672		$	14,740		$	5,778		$	4,441	$	10,982	$	5,157	$	9,387		$	12,221		$	—		$	12,737		$	—		$	16,209		$	10,595		$	7,002		$	126,921
ALL HOTELS NOT UNDER RENOVATION:
Hotel EBITDA including amounts attributable to noncontrolling interest	$	—		$	14,740		$	—		$	4,441	$	—	$	3,924	$	2,419		$	12,221		$	9,570		$	—		$	10		$	16,209		$	—		$	7,002		$	70,536
Non-comparable adjustments	—			—			—			—		—		1,233		6,968			—			(9,570		)	—			(10		)	—			—			—			(1,379		)
Comparable hotel EBITDA	$	—		$	14,740		$	—		$	4,441	$	—	$	5,157	$	9,387		$	12,221		$	—		$	—		$	—		$	16,209		$	—		$	7,002		$	69,157

HOTEL EBITDA BY LOAN POOL

(in thousands)

(unaudited)

GACC Sofitel - 1 hotel	$	—	$	—	$	5,778	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	5,778
Credit Agricole Pier House - 1 hotel	—		—		—		—		10,982		—		—		—		—		—		—		—		—		—		10,982
BAML Bardessono - 1 hotel	—		—		—		4,441		—		—		—		—		—		—		—		—		—		—		4,441
BAML Hotel Yountville - 1 hotel	—		—		—		—		—		5,157		—		—		—		—		—		—		—		—		5,157
Apollo Ritz-Carlton St Thomas - 1 hotel	—		—		—		—		—		—		—		—		—		—		—		—		10,595		—		10,595
Aareal - 2 hotels	17,672		14,740		—		—		—		—		—		—		—		—		—		—		—		—		32,412
Morgan Stanley Pool -4 hotels	—		—		—		—		—		—		—		12,221		—		12,737		—		16,209		—		7,002		48,169
JP Morgan Park Hyatt Beaver Creek -1 hotel	—		—		—		—		—		—		9,387		—		—		—		—		—		—		—		9,387
Total	$	17,672	$	14,740	$	5,778	$	4,441	$	10,982	$	5,157	$	9,387	$	12,221	$	—	$	12,737	$	—	$	16,209	$	10,595	$	7,002	$	126,921

NOTES:

(1) The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2)    All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates.

(3) Excluded Hotels Under Renovation:

Capital Hilton Washington D.C., Chicago Sofitel Magnificent Mile, Key West Pier House Resort, San Francisco Courtyard Downtown, St. Thomas Ritz-Carlton

25

Exhibit 1

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)

	Year Ended December 31, 2016
	Capital Hilton Washington D.C.			La Jolla Hilton Torrey Pines			Chicago Sofitel Magnificent Mile		Bardessono Hotel & Spa		Key West Pier House Resort		Hotel Yountville		Park Hyatt Beaver Creek		Philadelphia Courtyard Downtown			Plano Marriott Legacy Town Center			San Francisco Courtyard Downtown			Seattle Courtyard Downtown			Seattle Marriott Waterfront			St. Thomas Ritz-Carlton			Tampa Renaissance		Hotel Total			Corporate / Allocated			Ashford Hospitality Prime, Inc.
Net income (loss)	$	11,234		$	6,883		$	1,766	$	1,942	$	7,511	$	—	$	—	$	4,434		$	6,649		$	10,091		$	28,725		$	11,288		$	2,661		$	3,019	$	96,203		$	(71,883	)	$	24,320
(Income) loss from consolidated entities attributable to noncontrolling interest	(2,940		)	(1,816		)	—		—		—		—		—		—			—			—			—			—			—			—		(4,756		)	1,651			(3,105		)
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership	—			—			—		—		—		—		—		—			—			—			—			—			—			—		—			(1,899		)	(1,899		)
Net income (loss) attributable to the Company	8,294			5,067			1,766		1,942		7,511		—		—		4,434			6,649			10,091			28,725			11,288			2,661			3,019		91,447			(72,131		)	19,316
Non-property adjustments	—			—			—		—		—		—		—		—			—			—			(26,359		)	—			43			—		(26,316		)	26,316			—
Interest income	(1		)	(1		)	—		—		—		—		—		(3		)	(2		)	(15		)	—			(10		)	(3		)	—		(35		)	(132		)	(167		)
Interest expense	—			—			2,261		—		—		—		—		1,977			—			—			—			—			2,319			—		6,557			31,155			37,712
Amortization of loan cost	—			—			119		—		—		—		—		31			—			—			—			—			504			—		654			2,515			3,169
Depreciation and amortization	6,269			6,008			4,152		2,398		2,703		—		—		5,853			4,324			2,676			834			3,803			3,147			3,730		45,897			—			45,897
Income tax expense (benefit)	29			(121		)	—		—		—		—		—		18			—			—			—			—			(16		)	—		(90		)	1,664			1,574
Non-hotel EBITDA ownership expense	(109		)	153			102		689		15		—		—		247			50			38			(36		)	34			158			28		1,369			(1,369		)	—
Income (loss) from consolidated entities attributable to noncontrolling interest	2,940			1,816			—		—		—		—		—		—			—			—			—			—			—			—		4,756			(4,756		)	—
Hotel EBITDA including amounts attributable to noncontrolling interest	17,422			12,922			8,400		5,029		10,229		—		—		12,557			11,021			12,790			3,164			15,115			8,813			6,777		124,239			(16,738		)	107,501
Less: EBITDA adjustments attributable to noncontrolling interest	(1,415		)	(1,415		)	—		—		—		—		—		—			—			—			—			—			—			—		(2,830		)	(1,662		)	(4,492		)
(Income) loss from consolidated entities attributable to noncontrolling interest	(2,940		)	(1,816		)	—		—		—		—		—		—			—			—			—			—			—			—		(4,756		)	4,756			—
Net income (loss) attributable to redeemable noncontrolling interests in operating partnership	—			—			—		—		—		—		—		—			—			—			—			—			—			—		—			1,899			1,899
Hotel EBITDA attributable to the Company and OP unitholders	$	13,067		$	9,691		$	8,400	$	5,029	$	10,229	$	—	$	—	$	12,557		$	11,021		$	12,790		$	3,164		$	15,115		$	8,813		$	6,777	$	116,653		$	(11,745	)	$	104,908
Non-comparable adjustments	—			—			—		—		—		6,960		9,700		—			(11,021		)	—			(3,164		)	—			—			—		2,475
Comparable hotel EBITDA	$	17,422		$	12,922		$	8,400	$	5,029	$	10,229	$	6,960	$	9,700	$	12,557		$	—		$	12,790		$	—		$	15,115		$	8,813		$	6,777	$	126,714
ALL HOTELS NOT UNDER RENOVATION:
Hotel EBITDA including amounts attributable to noncontrolling interest	$	—		$	12,922		$	—	$	5,029	$	—	$	—	$	—	$	12,557		$	11,021		$	—		$	3,164		$	15,115		$	—		$	6,777	$	66,585
Non-comparable adjustments	—			—			—		—		—		6,960		9,700		—			(11,021		)	—			(3,164		)	—			—			—		2,475
Comparable hotel EBITDA	$	—		$	12,922		$	—	$	5,029	$	—	$	6,960	$	9,700	$	12,557		$	—		$	—		$	—		$	15,115		$	—		$	6,777	$	69,060

NOTES:

(1) The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2)    All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates.

(3) Excluded Hotels Under Renovation:

Capital Hilton Washington D.C., Chicago Sofitel Magnificent Mile, Key West Pier House Resort, San Francisco Courtyard Downtown, St. Thomas Ritz-Carlton

26