EX-99.2 3 svcsupplementfinalupload.htm EX-99.2 svcsupplementfinalupload
Royal Sonesta Chase Park Plaza St. Louis, MO FOURTH QUARTER 2021 Supplemental Operating and Financial Data ALL AMOUNTS IN THIS REPORT ARE UNAUDITED. Exhibit 99.2 Royal Sonesta Kaua'i Resort Lihue Lihue, HI

 
Supplemental Q4 2021 2 Table of Contents CORPORATE INFORMATION Company Profile ............................................................................................................................................................................................................ 3 Investor Information ...................................................................................................................................................................................................... 4 Research Coverage ....................................................................................................................................................................................................... 5 FINANCIALS Key Financial Data ......................................................................................................................................................................................................... 6 Consolidated Balance Sheets ..................................................................................................................................................................................... 7 Consolidated Statements of Income (Loss) ............................................................................................................................................................. 8 Calculation of FFO and Normalized FFO ................................................................................................................................................................. 9 Calculation of EBITDA, EBITDAre and Adjusted EBITDAre .................................................................................................................................. 10 Notes to Consolidated Statements of Income (Loss), and calculations of FFO, Normalized FFO, EBITDA, EBITDAre, Adjusted EBITDAre, Hotel EBITDA and Adjusted Hotel EBITDA ...................................................................................................................................... 11 Debt Summary ............................................................................................................................................................................................................... 12 Debt Maturity Schedule ............................................................................................................................................................................................... 13 Leverage Ratios, Coverage Ratios and Public Debt Covenants .......................................................................................................................... 14 Capital Expenditures and Restricted Cash Activity ................................................................................................................................................ 15 Property Acquisitions and Dispositions Information Since January 1, 2021 ..................................................................................................... 16 PORTFOLIO INFORMATION Portfolio Summary ......................................................................................................................................................................................................... 17 Consolidated Portfolio Diversification by Industry ................................................................................................................................................. 18 Consolidated Portfolio Geographical Diversification ............................................................................................................................................ 19 Hotel Portfolio by Brand .............................................................................................................................................................................................. 20 Hotel Operating Statistics by Service Level - Comparable Hotels - three months ended December 31, 2021 ........................................ 21 Hotel Operating Statistics by Service Level - Comparable Hotels - year ended December 31, 2021 ......................................................... 22 Hotel Operating Statistics by Service Level - All Hotels - three months ended December 31, 2021 ........................................................... 23 Hotel Operating Statistics by Service Level - All Hotels - year ended December 31, 2021 ........................................................................... 24 Calculation and Reconciliation of Hotel EBITDA and Adjusted Hotel EBITDA - Comparable Hotels .......................................................... 25 Calculation and Reconciliation of Hotel EBITDA and Adjusted Hotel EBITDA - All Hotels ............................................................................ 26 Net Lease Portfolio by Brand ...................................................................................................................................................................................... 27 Net Lease Portfolio by Industry .................................................................................................................................................................................. 28 Net Lease Portfolio by Tenant (Top 10) .................................................................................................................................................................... 29 Net Lease Portfolio Expiration Schedule .................................................................................................................................................................. 30 Net Lease Portfolio Occupancy Summary ................................................................................................................................................................ 31 Non-GAAP FINANCIAL MEASURES AND CERTAIN DEFINITIONS ............................................................................................................................................. 32 WARNING CONCERNING FORWARD-LOOKING STATEMENTS ................................................................................................................................................ 34 Please refer to Non-GAAP Financial Measures and Certain Definitions for terms used throughout this document. SVC Nasdaq Listed

 
Supplemental Q4 2021 3 Corporate Headquarters: Two Newton Place 255 Washington Street, Suite 300 Newton, MA 02458-1634 (t) (617) 964-8389 Stock Exchange Listing: Nasdaq Trading Symbol: Common Shares: SVC Key Data (as of and for the three months ended December 31, 2021): (dollars in 000s) Total properties: 1,091 Hotels 303 Net lease properties 788 Number of hotel rooms/suites 48,346 Total net lease square feet 13,522,060 Q4 2021 Total revenues $ 421,375 Q4 2021 Net loss $ (198,793) Q4 2021 Normalized FFO $ 27,936 Q4 2021 Adjusted EBITDAre $ 118,997 The Company: Service Properties Trust, or SVC, we, our or us, is a real estate investment trust, or REIT, with more than $12 billion invested in two asset categories: hotels and service-focused retail net lease properties. SVC owns 303 hotels with over 48,000 guest rooms throughout the United States and in Puerto Rico and Canada, the majority of which are extended stay and select service. SVC owns 788 retail service-focused net lease properties totaling over 13 million square feet throughout United States. SVC is included in 135 market indices and comprises more than 1% of the following indices as of September 30, 2021: Bloomberg REIT Hotels Index (BBREHOTL), Invesco S&P SmallCap Financials ETF INAV Index (PSCFIV), and the Bloomberg WBZ Massachusetts Index (BCMAX). Management: SVC is managed by The RMR Group (Nasdaq: RMR). RMR is an alternative asset management company that is focused on commercial real estate and related businesses. RMR primarily provides management services to publicly traded real estate companies, privately held real estate funds and real estate related operating businesses. As of December 31, 2021, RMR had $33 billion of real estate assets under management and the combined RMR managed companies had approximately $12 billion of annual revenues, nearly 2,100 properties and approximately 37,000 employees. We believe that being managed by RMR is a competitive advantage for SVC because of RMR’s depth of management and experience in the real estate industry. We also believe RMR provides management services to us at costs that are lower than we would have to pay for similar quality services if we were self-managed. Company Profile RETURN TO TABLE OF CONTENTS

 
Supplemental Q4 2021 4 Board of Trustees Laurie B. Burns Robert E. Cramer Donna D. Fraiche Independent Trustee Independent Trustee Lead Independent Trustee John L. Harrington William A. Lamkin John G. Murray Independent Trustee Independent Trustee Managing Trustee Adam D. Portnoy Chair of the Board & Managing Trustee Senior Management John G. Murray Brian E. Donley Todd W. Hargreaves President and Chief Executive Officer Chief Financial Officer and Treasurer Vice President and Chief Investment Officer Contact Information Investor Relations Inquiries Service Properties Trust Financial, investor and media inquiries should be directed to: Two Newton Place Kristin Brown, Director, Investor Relations at 255 Washington Street/Suite 300 (617) 796-8232, or kbrown@rmrgroup.com. Newton, MA 02458-1634 (t) (617) 964-8389 (email) info@svcreit.com (website) www.svcreit.com Investor Information RETURN TO TABLE OF CONTENTS Sonesta Select Boca Raton Boca Raton, FL

 
Supplemental Q4 2021 5 Equity Research Coverage (1) B. Riley Securities, Inc. Janney Montgomery Scott Wells Fargo Securities Bryan Maher Tyler Batory Dori Kesten (646) 885-5423 (215) 665-4448 (617) 603-4233 bmaher@brileyfin.com tbatory@janney.com dori.kesten@wellsfargo.com Rating Agencies (1) Senior Unsecured Debt Ratings Moody’s Investors Service S&P Global Standard & Poor's: B+/BB* Reed Valutas Alan Zigman Moody's: Ba2 (Outlook: Negative)/ Ba1* (212) 553-4169 (416) 507-2556 * BB/ Ba1 rating assigned to guaranteed Senior Unsecured Notes. reed.valutas@moodys.com alan.zigman@spglobal.com Research Coverage (1) SVC is followed by the analysts and its publicly held debt is rated by the rating agencies listed above. Please note that any opinions, estimates or forecasts regarding SVC's performance made by these analysts or agencies do not represent opinions, forecasts or predictions of SVC or its management. SVC does not by its reference above imply its endorsement of or concurrence with any information, conclusions or recommendations provided by any of these analysts or agencies. RETURN TO TABLE OF CONTENTS

 
Supplemental Q4 2021 6 As of and For the Three Months Ended 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 Selected Balance Sheet Data: Total gross assets $ 12,434,974 $ 12,852,602 $ 12,845,383 $ 12,892,150 $ 11,967,429 Total assets $ 9,153,315 $ 9,334,831 $ 9,415,735 $ 9,514,515 $ 8,687,319 Total liabilities $ 7,598,009 $ 7,581,089 $ 7,601,084 $ 7,607,983 $ 6,584,529 Total shareholders' equity $ 1,555,306 $ 1,753,742 $ 1,814,651 $ 1,906,532 $ 2,102,790 Selected Income Statement Data: Total revenues $ 421,375 $ 437,099 $ 375,936 $ 261,170 $ 270,043 Net loss $ (198,793) $ (59,714) $ (91,110) $ (194,990) $ (137,740) FFO $ (8,545) $ 40,376 $ 19,151 $ (62,456) $ (43,124) Normalized FFO $ 27,936 $ 43,781 $ 25,840 $ (41,996) $ (22,474) Adjusted EBITDAre $ 118,997 $ 137,324 $ 118,577 $ 48,705 $ 64,953 Per Common Share Data (basic and diluted): Net loss $ (1.21) $ (0.36) $ (0.55) $ (1.19) $ (0.84) FFO $ (0.05) $ 0.25 $ 0.12 $ (0.38) $ (0.26) Normalized FFO $ 0.17 $ 0.27 $ 0.16 $ (0.26) $ (0.14) Dividend Data: Annualized dividends paid per share during the period $ 0.04 $ 0.04 $ 0.04 $ 0.04 $ 0.04 Annualized dividend yield (at end of period) 0.4 % 0.4 % 0.3 % 0.3 % 0.5 % Normalized FFO payout ratio 5.9 % 3.7 % 6.3 % (3.8) % (7.1) % (dollars in thousands, except per share data) Key Financial Data RETURN TO TABLE OF CONTENTS Sonesta Select Durham Durham, NC

 
Supplemental Q4 2021 7 December 31, 2021 2020 ASSETS Real estate properties: Land $ 1,918,385 $ 2,030,440 Buildings, improvements and equipment 8,307,248 9,131,832 Total real estate properties, gross 10,225,633 11,162,272 Accumulated depreciation (3,281,659) (3,280,110) Total real estate properties, net 6,943,974 7,882,162 Acquired real estate leases and other intangibles, net 283,241 325,845 Assets held for sale 515,518 13,543 Cash and cash equivalents 944,043 73,332 Restricted cash 3,375 18,124 Due from related persons 48,168 55,530 Other assets, net 414,996 318,783 Total assets $ 9,153,315 $ 8,687,319 LIABILITIES AND SHAREHOLDERS' EQUITY Revolving credit facility $ 1,000,000 $ 78,424 Senior unsecured notes, net 6,143,022 6,130,166 Accounts payable and other liabilities 433,448 345,373 Due to related persons 21,539 30,566 Total liabilities 7,598,009 6,584,529 Commitments and contingencies Shareholders' equity: Common shares of beneficial interest, $.01 par value; 200,000,000 shares authorized; 165,092,333 and 164,823,833 shares issued and outstanding, respectively 1,651 1,648 Additional paid in capital 4,552,558 4,550,385 Cumulative other comprehensive income (loss) 779 (760) Cumulative net income available for common shareholders 2,635,660 3,180,263 Cumulative common distributions (5,635,342) (5,628,746) Total shareholders' equity 1,555,306 2,102,790 Total liabilities and shareholders' equity $ 9,153,315 $ 8,687,319 Consolidated Balance Sheets (dollars in thousands, except share data) RETURN TO TABLE OF CONTENTS Sonesta Select Laguna Hills Laguna Hills, CA

 
Supplemental Q4 2021 8 Three Months Ended December 31, Year Ended December 31, 2021 2020 2021 2020 Revenues: Hotel operating revenues (1) $ 317,215 $ 174,520 $ 1,104,678 $ 875,098 Rental income (2) 104,160 95,523 390,902 390,156 Total revenues 421,375 270,043 1,495,580 1,265,254 Expenses: Hotel operating expenses (1)(3) 286,968 189,898 1,010,737 682,804 Other operating expenses 3,900 4,179 15,658 15,208 Depreciation and amortization 115,757 121,351 485,965 498,908 General and administrative 12,601 13,046 53,439 50,668 Transaction related costs (4) 35,830 15,100 64,764 15,100 Loss on asset impairment (5) 76,510 254 78,620 55,756 Total expenses 531,566 343,828 1,709,183 1,318,444 Gain on sale of real estate, net (6) 588 11,916 11,522 2,261 Unrealized gain on equity securities, net (7) 2,168 15,473 22,535 19,882 Gain on insurance settlement (8) — — — 62,386 Interest income 177 1 664 284 Interest expense (including amortization of debt issuance costs and debt discounts and premiums of $5,913, $4,220, $21,036 and $14,870 respectively) (92,494) (82,811) (365,721) (306,490) Loss on early extinguishment of debt (9) — (2,424) — (9,394) Loss before income taxes and equity in losses of an investee (199,752) (131,630) (544,603) (284,261) Income tax benefit (expense) (8) 1,950 (505) 941 (17,211) Equity in losses of an investee (10) (991) (5,605) (941) (9,910) Net loss $ (198,793) $ (137,740) $ (544,603) $ (311,382) Weighted average common shares outstanding (basic and diluted) 164,667 164,498 164,566 164,422 Net loss per common share (basic and diluted) $ (1.21) $ (0.84) $ (3.31) $ (1.89) (amounts in thousands, except per share data) Consolidated Statements of Income (Loss) RETURN TO TABLE OF CONTENTS See accompanying notes on page 11.

 
Supplemental Q4 2021 9 For the Three Months Ended For the Year Ended 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 12/31/2021 12/31/2020 Net loss $ (198,793) $ (59,714) $ (91,110) $ (194,990) $ (137,740) $ (544,603) $ (311,382) Add (Less): Depreciation and amortization 115,757 124,163 121,677 124,368 121,351 485,965 498,908 Loss on asset impairment (5) 76,510 — 899 1,211 254 78,620 55,756 (Gain) loss on sale of real estate, net (6) (588) (94) (10,849) 9 (11,916) (11,522) (2,261) Unrealized (gain) loss on equity securities, net (7) (2,168) (24,348) (2,500) 6,481 (15,473) (22,535) (19,882) Adjustments to reflect our share of FFO attributable to an investee (10) 737 369 1,034 465 400 2,605 (61) FFO (8,545) 40,376 19,151 (62,456) (43,124) (11,470) 221,078 Add (Less): Gain on insurance settlement, net of tax (8) — — — — (1,800) — (48,536) Loss on early extinguishment of debt (9) — — — — 2,424 — 9,394 Adjustments to reflect our share of Normalized FFO attributable to an investee (10) 651 256 538 825 964 2,270 964 Loss contingency (11) — — — — 3,962 — 3,962 Transaction related costs (4) 35,830 3,149 6,151 19,635 15,100 64,764 15,100 Normalized FFO $ 27,936 $ 43,781 $ 25,840 $ (41,996) $ (22,474) $ 55,564 $ 201,962 Weighted average shares outstanding (basic and diluted) 164,667 164,590 164,506 164,498 164,498 164,566 164,422 Basic and diluted per share common share amounts: Net loss $ (1.21) $ (0.36) $ (0.55) $ (1.19) $ (0.84) $ (3.31) $ (1.89) FFO $ (0.05) $ 0.25 $ 0.12 $ (0.38) $ (0.26) $ (0.07) $ 1.34 Normalized FFO $ 0.17 $ 0.27 $ 0.16 $ (0.26) $ (0.14) $ 0.34 $ 1.23 Calculation of FFO and Normalized FFO (amounts in thousands, except per share data) RETURN TO TABLE OF CONTENTS See accompanying notes on page 11.

 
Supplemental Q4 2021 10 For the Three Months Ended For the Year Ended 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 12/31/2021 12/31/2020 Net loss $ (198,793) $ (59,714) $ (91,110) $ (194,990) $ (137,740) $ (544,603) $ (311,382) Add (Less): Interest expense 92,494 92,458 91,378 89,391 82,811 365,721 306,490 Income tax (benefit) expense (8) (1,950) (55) 211 853 505 (941) 17,211 Depreciation and amortization 115,757 124,163 121,677 124,368 121,351 485,965 498,908 EBITDA 7,508 156,852 122,156 19,622 66,927 306,142 511,227 Add (Less): Loss on asset impairment (5) 76,510 — 899 1,211 254 78,620 (2,261) (Gain) loss on sale of real estate, net (6) (588) (94) (10,849) 9 (11,916) (11,522) 55,756 Adjustments to reflect our share of EBITDAre attributable to an investee (10) 781 464 1,116 543 — 2,904 — EBITDAre 84,211 157,222 113,322 21,385 55,265 376,144 564,722 Add (less): Unrealized (gain) loss on equity securities, net (7) (2,168) (24,348) (2,500) 6,481 (15,473) (22,535) (19,882) Gain on insurance settlement (8) — — — — — — (62,386) Loss on early extinguishment of debt (9) — — — — 2,424 — 9,394 Adjustments to reflect our share of Adjusted EBITDAre attributable to an investee (10) 651 256 538 825 2,755 2,270 1,751 Loss contingency (11) — — — — 3,962 — 3,962 Transaction related costs (4) 35,830 3,149 6,151 19,635 15,100 64,764 15,100 General and administrative expense paid in common shares (12) 473 1,045 1,066 379 920 2,963 3,206 Adjusted EBITDAre $ 118,997 $ 137,324 $ 118,577 $ 48,705 $ 64,953 $ 423,606 $ 515,867 Calculation of EBITDA, EBITDAre and Adjusted EBITDAre (dollars in thousands) See accompanying notes on page 11. RETURN TO TABLE OF CONTENTS

 
Supplemental Q4 2021 11 Notes to Consolidated Statements of Income (Loss) and Calculations of FFO, Normalized FFO, EBITDA, EBITDAre, Adjusted EBITDAre, Hotel EBITDA and Adjusted Hotel EBITDA (dollar in thousands) RETURN TO TABLE OF CONTENTS (1) As of December 31, 2021, we owned 303 hotels. Our consolidated statements of income (loss) include hotel operating revenues and expenses of managed hotels and rental income from leased hotels. (2) We increased rental income by $466 and reduced rental income by $416 for the three months ended December 31, 2021 and 2020, respectively, and reduced rental income by $2,621 and $714 for the years ended December 31, 2021 and 2020, respectively, to record scheduled rent changes under certain of our leases, the deferred rent obligations under our leases with TravelCenters of America Inc., or TA, and the estimated future payments to us under our leases with TA for the cost of removing underground storage tanks on a straight-line basis. (3) When managers of our hotels are required to fund the shortfalls of minimum returns under the terms of our management agreements or their guarantees, we reflect such fundings (including security deposit applications) in our consolidated statements of income (loss) as a reduction of hotel operating expenses. The net reduction to hotel operating expenses was $13,387 for the three months ended December 31, 2020 and $15,697 and $235,522 for the years ended December 31, 2021 and 2020, respectively. There was no net reduction to hotel operating expenses during the three months ended December 31, 2021. (4) Transaction related costs for the three months ended December 31, 2021 of $35,830 primarily consisted of working capital advances we previously funded under our agreements with Marriott International Inc., or Marriott, and InterContinental Hotels Group, plc, or IHG, as a result of the amounts no longer expected to be recoverable. Transaction related costs for the three months ended September 30, 2021 of $3,149 are primarily related to legal costs related to our arbitration proceeding with Marriott. Transaction related costs for the three months ended June 30, 2021 included $3,700 of working capital we previously funded under our agreement with Hyatt Hotels Corporation, or Hyatt, as a result of the amount no longer expected to be recoverable, $1,110 of legal costs related to our arbitration proceeding with Marriott and $1,341 of hotel manager transition costs and for the three months ended March 31, 2021 includes $19,634 of hotel manager transition related costs resulting from the rebranding of 88 hotels during the period. Transaction related costs for the year ended December 31, 2021 include $38,446 of working capital advances we previously funded under our agreements with Marriott, IHG and Hyatt as a result of the amounts no longer expected to be recoverable, $19,920 of hotel manager transition related costs resulting from the rebranding of 94 hotels during the period, and $6,398 of legal costs related to SVC’s arbitration proceeding with Marriott. Transaction costs for the three months and year ended December 31, 2020 primarily consisted of transition related costs resulting from the rebranding of 115 hotels previously managed by IHG, Marriott and Wyndham Hotels & Resorts, Inc. to subsidiaries of Sonesta Holdco Corporation, or Sonesta. (5) We recorded a $76,510 loss on asset impairment during the three months ended December 31, 2021 to reduce the carrying value of 35 net lease properties and 21 hotels to their estimated fair value less costs to sell. We recorded a $254 loss on asset impairment during the three months ended December 31, 2020 to reduce the carrying value of five net lease properties to their estimated fair value less costs to sell. We recorded a $78,620 loss on asset impairment during the year ended December 31, 2021 to reduce the carrying value of 35 hotels and 26 net lease properties to their estimated fair value less costs to sell and a $55,756 loss on asset impairment during the year ended December 31, 2020 to reduce the carrying value of 18 hotel properties and 13 net lease properties to their estimated fair value less costs to sell. (6) We recorded a $588 net gain on sale of real estate during the three months ended December 31, 2021 in connection with the sale of one hotel and six net lease properties. We recorded a $94 net gain on sale of real estate during the three months ended September 30, 2021 in connection with the sale of two net lease properties. We recorded a $10,849 net gain on sale of real estate during the three months ended June 30, 2021 in connection with the sale of six hotels and two net lease properties. We recorded a $9 net loss on sale of real estate during the three months ended March 31, 2021 in connection with the sale of one net lease property. We recorded a $11,916 net gain on sale of real estate during the three months ended December 31, 2020 in connection with the sale of 18 hotels and six net lease properties. (7) Unrealized gain (loss) on equity securities, net represents the adjustment required to adjust the carrying value of our investment in shares of TA common stock to their fair value. (8) We recorded a $62,386 gain on insurance settlement during the year ended December 31, 2020 for insurance proceeds received for our then leased hotel in San Juan, PR related to Hurricane Maria. Under GAAP, we were required to increase the building basis of this hotel for the amount of the insurance proceeds. We also recorded a $13,850 deferred tax liability as a result of the book value to tax basis difference related to this accounting during the year ended December 31, 2020. We recorded a reduction to this deferred tax liability of $1,800 for the three months ended December 31, 2020. (9) We recorded a loss on extinguishment of debt of $2,424 and $9,394 during the three months and year ended December 31, 2020, respectively, net of unamortized discount and deferred financing costs, relating to our repayment of our $400,000 term loan and certain unsecured senior notes. (10) Represents our proportionate share from our equity investment in Sonesta. (11) Hotel operating expenses for the three months ended December 31, 2020 includes a $3,962 loss contingency related to a litigation matter relating to certain of our hotels. (12) Amounts represent the equity compensation for our Trustees, officers and certain other employees of our manager. (13) Various percentages of total sales at certain of our hotels are escrowed as reserves for future renovations or refurbishments, or FF&E reserve escrows. We own all the FF&E reserve escrows for our hotels. (14) We are amortizing a liability we recorded for the fair value of our initial investment in Sonesta as a reduction to hotel operating expenses in our consolidated statements of income (loss).

 
Supplemental Q4 2021 12 (1) We are required to pay interest on borrowings under our revolving credit facility at a rate of LIBOR plus a premium of 235 basis points per annum, subject to an interest rate floor of 0.50%. We also pay a facility fee of 30 basis points per annum on the total amount of lending commitments under our revolving credit facility. Both the interest rate premium and facility fee are subject to adjustment based upon changes to our credit ratings. The interest rate listed above is as of December 31, 2021. Subject to the payment of an extension fee and meeting certain other conditions, we may extend the maturity date of our credit facility by two additional six month periods. (2) We have provided equity pledges on certain of our property owning subsidiaries and provided first mortgage liens on 74 properties owned by the pledged subsidiaries to secure our obligations under the credit agreement governing out credit facility. (3) The notes are guaranteed by certain of our subsidiaries. (4) The carrying value of our total debt of $7,143,022 as of December 31, 2021 is net of unamortized discounts and premiums and certain issuance costs totaling $56,978. Interest Principal Maturity Due at Years to Rate Balance Date Maturity Maturity Floating Rate Debt: $1,000,000 revolving credit facility (1) (2) 2.850 % $ 1,000,000 7/15/22 $ 1,000,000 0.5 Unsecured Fixed Rate Debt: Senior unsecured notes due 2022 5.000 % $ 500,000 8/15/22 $ 500,000 0.6 Senior unsecured notes due 2023 4.500 % 500,000 6/15/23 500,000 1.5 Senior unsecured notes due 2024 4.650 % 350,000 3/15/24 350,000 2.2 Senior unsecured notes due 2024 4.350 % 825,000 10/1/24 825,000 2.8 Senior unsecured notes due 2025 4.500 % 350,000 3/15/25 350,000 3.2 Senior unsecured notes due 2025 (3) 7.500 % 800,000 9/15/25 800,000 3.7 Senior unsecured notes due 2026 5.250 % 350,000 2/15/26 350,000 4.1 Senior unsecured notes due 2026 4.750 % 450,000 10/1/26 450,000 4.8 Senior unsecured notes due 2027 4.950 % 400,000 2/15/27 400,000 5.1 Senior unsecured notes due 2027 (3) 5.500 % 450,000 12/15/27 450,000 6.0 Senior unsecured notes due 2028 3.950 % 400,000 1/15/28 400,000 6.0 Senior unsecured notes due 2029 4.950 % 425,000 10/1/29 425,000 7.8 Senior unsecured notes due 2030 4.375 % 400,000 2/15/30 400,000 8.1 Subtotal / weighted average 5.065 % 6,200,000 6,200,000 4.1 Total / weighted average (4) 4.758 % $ 7,200,000 $ 7,200,000 3.6 Debt Summary As of December 31, 2021 (dollars in thousands) RETURN TO TABLE OF CONTENTS

 
Supplemental Q4 2021 13 (1) Represents amounts outstanding under our $1.0 billion revolving credit facility at December 31, 2021. Subject to the payment of an extension fee and meeting certain other conditions, we may extend the maturity date of our credit facility by two additional six month periods. Debt Maturity Schedule As of December 31, 2021 RETURN TO TABLE OF CONTENTS (1) The Pelham Royal Sonesta Hotel Washington, DC

 
Supplemental Q4 2021 14 As of and For the Three Months Ended 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 Leverage Ratios: Net debt / total gross assets 50.3 % 48.9 % 48.9 % 49.1 % 51.8 % Net debt / gross book value of real estate assets and cash and cash equivalents 51.9 % 50.8 % 50.7 % 51.0 % 53.7 % Secured debt/ total assets 0.6 % 0.9 % 1.1 % 0.9 % 0.9 % Variable rate debt / Net debt 16.0 % 15.9 % 15.9 % 15.8 % 1.3 % Coverage Ratios: Rolling four-quarter Adjusted EBITDAre/ rolling four-quarter interest expense 1.2x 1.0x 1.0x 1.1x 1.7x Net debt / rolling four-quarter Adjusted EBITDAre (1) 14.8x 17.0x 18.7x 17.1x 12.0x As of and For the Trailing Twelve Months Ended 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 Public Debt Covenants: Maintenance Covenant Total unencumbered assets / unsecured debt - required minimum 150% 176.3 % 179.5 % 179.1 % 179.6 % 167.3 % Incurrence Covenants (2) Total debt / adjusted total assets - allowable maximum 60.0% 56.4 % 55.5 % 55.6 % 55.4 % 51.3 % Secured debt / adjusted total assets - allowable maximum 40.0% 7.8 % 7.7 % 7.7 % 7.7 % 0.6 % Consolidated income available for debt service / debt service - required minimum 1.50x 1.20x 1.06x 1.00x 1.12x 1.56x Leverage Ratios, Coverage Ratios and Public Debt Covenants RETURN TO TABLE OF CONTENTS (1) The ratio of net debt to annualized adjusted EBITDAre for the three months ended December 2021 was 13.1x. (2) As of December 31, 2021, we were below the covenant levels under our debt agreements necessary to incur additional debt, and, as a result, we will not be able to incur additional debt while below these levels. Royal Sonesta San Juan San Juan, PR

 
Supplemental Q4 2021 15 Capital Expenditures For the Three Months Ended 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 Hotel capital improvements & FF&E Reserve fundings (1) $ 30,010 $ 19,384 $ 24,167 $ 28,881 $ 32,153 Net lease capital improvements 402 403 227 156 265 Total capital improvements & FF&E Reserve fundings $ 30,412 $ 19,787 $ 24,394 $ 29,037 $ 32,418 Restricted Cash As of and For the Three Months Ended 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 Total restricted cash (beginning of period) $ 1,657 $ 1,295 $ 5,096 $ 18,124 $ 38,130 Manager deposits into FF&E Reserve 1,312 1,393 2,485 447 2,782 SVC fundings into FF&E Reserve: Marriott 75 69 250 7,000 15,400 Hyatt — — — 168 — Radisson — — — — 1,985 Hotel improvements funded from FF&E Reserve (702) (1,100) (6,536) (14,198) (26,269) FF&E reserves (end of period) 2,342 1,657 1,295 11,541 32,028 Hotel manager release of FF&E Reserve to SVC — — — (6,445) — Hotel manager deposit (withdrawal) of insurance proceeds — — — — (13,904) Proceeds from asset sales deposited into revolver collateral account, net 1,033 — — — — Total restricted cash (end of period) $ 3,375 $ 1,657 $ 1,295 $ 5,096 $ 18,124 (1) Includes amounts we funded into our FF&E reserves and amounts directly reimbursed to our hotel managers for capital expenditures. (dollars in thousands) Capital Expenditures and Restricted Cash Activity RETURN TO TABLE OF CONTENTS Royal Sonesta Boston Cambridge, MA

 
Supplemental Q4 2021 16 ACQUISITIONS: Square Footage Purchase Price (1) Average Purchase Price per Room or Suite / Square FootDate Acquired Properties Property Type Brand Location Operating Agreement 3/9/2021 — Land N/A Nashville, TN (2) N/A N/A $ 7,600 N/A DISPOSITIONS: Rooms or Suites/ Square Footage Former Operating Agreement Average Sales Price per Room or Suite / Square FootDate Disposed Properties Property Type Brand Location Sales Price (1) 03/16/2021 1 Net Lease Vacant Chattanooga, TN 2,797 Vacant $ 375 $ 134 04/01/2021 1 Hotel Courtyard Jacksonville, FL 146 Marriott 9,753 67 04/06/2021 1 Net Lease Vacant Colorado Springs, CO 32,130 Vacant 1,300 40 05/20/2021 5 Hotel Hawthorn Suites Various 430 Wyndham 22,263 52 06/11/2021 1 Net Lease Pizza Hut Emmitsburg, MD 3,114 Chaac Pizza Northeast, LLC 360 116 08/11/2021 1 Net Lease Pizza Hut Soddy Daisy, TN 2,941 American Huts, Inc. 300 102 09/30/2021 1 Net Lease Vacant Lincoln, IL 3,698 Vacant 370 100 10/19/2021 1 Net Lease Vacant Independence, MO 7,070 Vacant 915 129 11/05/2021 1 Net Lease Pizza Hut Kimball, TN 3,200 American Huts, Inc. 600 188 11/05/2021 1 Net Lease Pizza Hut Harrisburg, PA 1,860 Chaac Pizza Northeast, LLC 315 169 11/19/2021 1 Net Lease Renn Kirby Chevrolet Buick Gettysburg, PA 34,272 Gettysburg Land Holdings, LLC 5,600 163 12/01/2021 1 Net Lease Pizza Hut Clinton, TN 2,500 American Huts, Inc. 445 178 12/22/2021 1 Net Lease Vacant Little Rock, AR 3,694 Vacant 1,200 325 12/30/2021 1 Hotel Sonesta ES Suites Houston, TX 93 Sonesta 8,536 92 18 669 /97,276 $ 52,332 $61/ $121 Property Acquisitions and Dispositions Information Since January 1, 2021 (dollars in thousands, except per sq. ft. data) (1) Represents cash purchase or sale price and excludes acquisition and closing related costs, respectively. (2) Consists of land adjacent to a property we own in Nashville, TN. RETURN TO TABLE OF CONTENTS

 
Supplemental Q4 2021 17 Number of Properties Hotel Properties 303 Number of hotel rooms 48,346 Net Lease Properties 788 Square feet 13,522,060 Total Properties 1,091 Average hotel property size 160 rooms Average net lease property size 17,160 sq. feet Investments Diversification Facts Hotels $ 6,930,392 Tenants/Operators 179 Net Lease Properties 5,131,191 Brands 145 Total Investments $ 12,061,583 Industries 22 States 47 (37 States, DC, PR, ON) Portfolio Summary As of December 31, 2021 (dollars in thousands) RETURN TO TABLE OF CONTENTS (1) Based on investment (1) (1) Sonesta Select Mahwah Mahwah, NJ

 
Supplemental Q4 2021 18 Industry No. of Properties Rooms/ Square Footage Investments Percent of Total Investment 1. Hotels 303 48,346 $ 6,930,392 57.5% 2. Travel Centers 182 5,238,766 3,352,096 27.8% 3. Restaurants-Quick Service 227 739,749 301,528 2.5% 4. Restaurants-Casual Dining 53 415,547 192,170 1.6% 5. Movie Theaters 22 1,152,845 190,725 1.6% 6. Health and Fitness 13 873,258 185,458 1.5% 7. Grocery Stores 19 1,020,819 129,219 1.1% 8. Home Goods and Leisure 20 632,465 118,899 1.0% 9. Medical, Dental Office 71 409,706 118,098 1.0% 10. Automotive Equipment & Services 64 219,107 98,473 0.8% 11. Automotive Dealers 8 137,979 60,119 0.5% 12. Entertainment 4 199,853 61,436 0.5% 13. General Merchandise Stores 5 406,786 56,321 0.5% 14. Educational Services 9 220,758 55,647 0.5% 15. Building Materials 27 429,798 31,317 0.3% 16. Car Washes 5 41,456 28,658 0.2% 17. Miscellaneous Manufacturing 7 763,312 32,873 0.3% 18. Drug Stores and Pharmacies 7 67,423 19,251 0.2% 19. Sporting Goods 3 120,847 17,595 0.1% 20. Legal Services 5 25,429 11,362 0.1% 21. Dollar Stores 3 27,593 2,971 —% 22. Other 4 149,622 10,419 0.1% 24. Vacant 30 228,942 56,556 0.3% Total 1,091 48,346 /13,522,060 $ 12,061,583 100.0% Consolidated Portfolio Diversification by Industry As of December 31, 2021 (dollars in thousands) RETURN TO TABLE OF CONTENTS Royal Sonesta Harbor Court Baltimore Baltimore, MD

 
Supplemental Q4 2021 19 Investments State Total Property Count Hotel Count Net Lease Count Total ($000s) % of Total Hotel ($000s) Hotel % of Total Net Lease ($000s) Net Lease % of Total California 58 36 22 $ 1,343,323 11.0 % $ 1,070,501 15.4 % $ 272,822 5.0 % Texas 93 34 59 1,055,278 9.0 % 517,370 7.5 % 537,908 10.0 % Georgia 95 21 74 750,261 6.0 % 479,768 6.9 % 270,493 5.0 % Illinois 72 13 59 740,505 6.0 % 448,441 6.5 % 292,064 6.0 % Florida 60 12 48 524,556 4.0 % 276,407 4.0 % 248,149 5.0 % Ohio 51 10 41 511,180 4.0 % 179,909 2.6 % 331,271 6.0 % Arizona 40 15 25 479,675 4.0 % 234,166 3.4 % 245,509 5.0 % Pennsylvania 38 10 28 413,994 3.0 % 210,785 3.0 % 203,209 4.0 % New Jersey 18 15 3 391,785 3.0 % 290,807 4.2 % 100,978 2.0 % Louisiana 15 3 12 375,793 3.0 % 244,088 3.5 % 131,705 3.0 % Top 10 540 169 371 6,586,350 53.0 % 3,952,242 57.0 % 2,634,108 51.0 % Other (1) 551 134 417 5,475,233 47.0 % 2,978,150 43.0 % 2,497,083 49.0 % Total 1,091 303 788 $ 12,061,583 100.0 % $ 6,930,392 100.0 % $ 5,131,191 100.0 % (1) Consists of properties in 37 different states with an average investment of $10,017. Consolidated Portfolio by Geographic Diversification As of December 31, 2021 (dollars in thousands) RETURN TO TABLE OF CONTENTS Sonesta Select Miami Lakes Hialeah (Miami lakes), FL

 
Supplemental Q4 2021 20 Brand Service Level Chain Scale Number of Hotels Percent of Total Number of Hotels Number of Rooms or Suites Percent of Total Number of Rooms or Suites Investment Percent of Total Hotel Investment Investment Per Room or Suite Royal Sonesta Hotels® Full Service Upper Upscale 17 5.6 % 5,663 11.7 % $ 1,840,427 26.6 % $ 325 Sonesta ES Suites® Extended Stay Upper Midscale 91 30.0 % 11,379 23.5 % 1,521,328 22.0 % 134 Sonesta Hotels & Resorts® Full Service Upper Upscale 25 8.3 % 8,040 16.6 % 1,218,583 17.6 % 152 Sonesta Select® Select Service Upscale 63 20.8 % 8,888 18.4 % 900,060 13.0 % 101 Sonesta Simply Suites® Extended Stay Midscale 65 21.5 % 8,040 16.6 % 658,827 9.5 % 82 Hyatt Place® Select Service Upscale 17 5.6 % 2,107 4.4 % 235,726 3.4 % 112 Courtyard by Marriott® Select Service Upscale 13 4.2 % 1,813 3.8 % 172,301 2.3 % 95 Radisson® Hotels & Resorts Full Service Upscale 5 1.7 % 1,149 2.4 % 159,707 2.3 % 139 Crowne Plaza® Full Service Upscale 1 0.3 % 495 1.0 % 123,283 1.8 % 249 Country Inns & Suites® by Radisson Full Service Upper Upscale 3 1.0 % 430 0.9 % 54,076 0.8 % 126 Residence Inn by Marriott® Extended Stay Upper Midscale 3 1.0 % 342 0.7 % 46,074 0.7 % 126 Total/Average Hotels 303 100.0 % 48,346 100.0 % $ 6,930,392 100.0 % $ 143 Hotel Portfolio by Brand As of December 31, 2021 (dollars in thousands, except per room or suite data) RETURN TO TABLE OF CONTENTS

 
Supplemental Q4 2021 21 Occupancy ADR RevPAR No. of Hotels No. of Rooms or Suites Three Months Ended December 31, Three Months Ended December 31, Three Months Ended December 31, Brand Service Level 2021 2020 Change 2021 2020 Change 2021 2020 Change Sonesta (1) Full Service 24 7,821 53.6 % 27.1 % 26.5 pts $ 129.64 $ 106.35 21.9 % $ 69.49 $ 28.82 141.1 % Royal Sonesta (1) Full Service 14 4,554 41.7 % 17.9 % 23.8 pts 196.81 132.22 48.9 % 82.07 23.67 246.7 % Radisson Hotel Full Service 5 1,149 56.4 % 28.4 % 28.0 pts 110.73 88.13 25.6 % 62.45 25.03 149.5 % Crowne Plaza Full Service 1 495 46.4 % 31.9 % 14.5 pts 114.97 87.10 32.0 % 53.35 27.78 92.0 % Country Inn and Suites Full Service 3 430 53.3 % 23.5 % 29.8 pts 105.04 83.86 25.3 % 55.99 19.71 184.1 % Full Service Total / Average 47 14,449 49.8 % 24.4 % 25.4 pts 144.24 109.14 32.2 % 71.83 26.63 169.7 % Sonesta Select (1) Select Service 63 8,888 41.8 % 30.0 % 11.8 pts 103.54 85.45 21.2 % 43.28 25.64 68.8 % Hyatt Place Select Service 17 2,107 63.3 % 45.1 % 18.2 pts 107.93 81.81 31.9 % 68.32 36.90 85.1 % Courtyard Select Service 13 1,813 50.8 % 31.9 % 18.9 pts 109.18 83.40 30.9 % 55.46 26.60 108.5 % Select Service Total / Average 93 12,808 46.6 % 32.8 % 13.8 pts 105.39 84.34 25.0 % 49.11 27.66 77.5 % Sonesta ES Suites (1) Extended Stay 91 11,379 65.4 % 55.3 % 10.1 pts 107.26 93.87 14.3 % 70.15 51.91 35.1 % Sonesta Simply Suites (1) Extended Stay 64 7,942 67.7 % 57.8 % 9.9 pts 75.89 64.03 18.5 % 51.38 37.01 38.8 % Residence Inn Extended Stay 3 342 58.6 % 37.0 % 21.6 pts 112.07 98.16 14.2 % 65.67 36.32 80.8 % Extended Stay Total / Average 158 19,663 66.2 % 56.0 % 10.2 pts 94.43 81.44 16.0 % 62.51 45.61 37.1 % 298 46,920 55.9 % 39.9 % 16.0 pts $ 110.26 $ 87.30 26.3 % $ 61.64 $ 34.83 77.0 % Hotel Operating Statistics by Service Level - Comparable Hotels RETURN TO TABLE OF CONTENTS All operating data presented are based upon the operating results provided by our managers and tenants for the indicated periods. We have not independently verified our managers' or tenants' operating data. (1) Includes operating data for periods prior to when certain hotels were managed by Sonesta.

 
Supplemental Q4 2021 22 All operating data presented are based upon the operating results provided by our managers and tenants for the indicated periods. We have not independently verified our managers' or tenants' operating data. (1) Includes operating data for periods prior to when certain hotels were managed by Sonesta. Occupancy ADR RevPAR No. of Hotels No. of Rooms or Suites Year Ended December 31, Year Ended December 31, Year Ended December 31, Brand Service Level 2021 2020 Change 2021 2020 Change 2021 2020 Change Sonesta (1) Full Service 18 6,110 47.6 % 35.5 % 12.1 pts $ 116.07 $ 117.10 (0.9) % $ 55.25 $ 41.57 32.9 % Royal Sonesta (1) Full Service 8 2,362 32.3 % 25.5 % 6.8 pts 159.20 142.73 11.5 % 51.42 36.40 41.3 % Radisson Hotel Full Service 4 969 52.8 % 34.9 % 17.9 pts 106.26 102.80 3.4 % 56.11 35.88 56.4 % Crowne Plaza Full Service 1 495 46.6 % 29.6 % 17.0 pts 111.83 111.50 0.3 % 52.11 33.00 57.9 % Country Inn and Suites Full Service 1 84 51.5 % 40.0 % 11.5 pts 87.47 83.33 5.0 % 45.05 33.33 35.2 % Full Service Total / Average 32 10,020 44.4 % 32.9 % 11.5 pts 121.91 119.73 1.8 % 54.13 39.39 37.4 % Sonesta Select (1) Select Service 63 8,888 37.2 % 30.9 % 6.3 pts 100.94 107.61 (6.2) % 37.55 33.25 12.9 % Hyatt Place Select Service 17 2,107 60.7 % 45.1 % 15.6 pts 101.76 92.88 9.6 % 61.77 41.89 47.5 % Courtyard Select Service 13 1,813 50.7 % 30.0 % 20.7 pts 103.14 92.68 11.3 % 52.29 27.80 88.1 % Select Service Total / Average 93 12,808 43.0 % 33.1 % 9.9 pts 101.50 102.40 (0.9) % 43.65 33.89 28.8 % Sonesta ES Suites (1) Extended Stay 90 11,233 65.9 % 53.7 % 12.2 pts 100.09 102.18 (2.0) % 65.96 54.87 20.2 % Sonesta Simply Suites (1) Extended Stay 62 7,698 68.6 % 62.8 % 5.8 pts 71.06 69.52 2.2 % 48.75 43.66 11.7 % Residence Inn Extended Stay 3 342 57.2 % 42.0 % 15.2 pts 110.01 104.26 5.5 % 62.93 43.79 43.7 % Extended Stay Total / Average 155 19,273 66.8 % 57.2 % 9.6 pts 88.40 87.85 0.6 % 59.05 50.25 17.5 % 280 42,101 54.2 % 44.1 % 10.1 pts $ 98.07 $ 96.84 1.3 % $ 53.15 $ 42.71 24.4 % Hotel Operating Statistics by Service Level - Comparable Hotels RETURN TO TABLE OF CONTENTS

 
Supplemental Q4 2021 23 No. of Hotels No. of Rooms or Suites Occupancy ADR RevPAR Three Months Ended December 31, Three Months Ended December 31, Three Months Ended December 31, Brand Service Level 2021 2020 Change 2021 2020 Change 2021 2020 Change Sonesta (2) Full Service 25 8,040 53.6 % 27.1 % 26.5 pts $ 129.64 $ 106.35 21.9 % $ 69.49 $ 28.82 141.1 % Royal Sonesta (2) Full Service 17 5,663 39.8 % 17.2 % 22.6 pts 207.21 136.89 51.4 % 82.47 23.55 250.2 % Radisson Hotel Full Service 5 1,149 56.4 % 28.4 % 28.0 pts 110.73 88.13 25.6 % 62.45 25.03 149.5 % Crowne Plaza Full Service 1 495 46.4 % 31.9 % 14.5 pts 114.97 87.10 32.0 % 53.35 27.78 92.0 % Country Inn and Suites Full Service 3 430 53.3 % 23.5 % 29.8 pts 105.04 83.86 25.3 % 55.99 19.71 184.1 % Full Service Total / Average 51 15,777 48.6 % 23.8 % 24.8 pts 149.94 110.94 35.2 % 72.87 26.40 176.0 % Sonesta Select (2) Select Service 63 8,888 41.8 % 30.0 % 11.8 pts 103.54 85.45 21.2 % 43.28 25.64 68.8 % Hyatt Place Select Service 17 2,107 63.3 % 45.1 % 18.2 pts 107.93 81.81 31.9 % 68.32 36.90 85.1 % Courtyard Select Service 13 1,813 50.8 % 31.9 % 18.9 pts 109.18 83.40 30.9 % 55.46 26.60 108.5 % Select Service Total / Average 93 12,808 46.6 % 32.8 % 13.8 pts 105.39 84.34 25.0 % 49.11 27.66 77.5 % Sonesta ES Suites (2) Extended Stay 91 11,379 65.4 % 55.3 % 10.1 pts 107.26 93.87 14.3 % 70.15 51.91 35.1 % Sonesta Simply Suites (2) Extended Stay 65 8,040 66.9 % 58.0 % 8.9 pts 75.89 63.92 18.7 % 50.77 37.07 37.0 % Residence Inn Extended Stay 3 342 58.6 % 37.0 % 21.6 pts 112.07 98.16 14.2 % 65.67 36.32 80.8 % Extended Stay Total / Average 159 19,761 65.9 % 56.1 % 9.8 pts 94.42 81.28 16.2 % 62.22 45.60 36.4 % 303 48,346 55.2 % 39.5 % 15.7 pts $ 112.30 $ 87.65 28.1 % $ 61.99 $ 34.62 79.1 % Hotel Operating Statistics by Service Level - All Hotels(1) RETURN TO TABLE OF CONTENTS All operating data presented are based upon the operating results provided by our managers and tenants for the indicated periods. We have not independently verified our managers' or tenants' operating data. (1) Results of all hotels owned as of December 31, 2021. Excludes the results of hotels sold during the periods presented. (2) Includes operating data for periods prior to when certain hotels were managed by Sonesta.

 
Supplemental Q4 2021 24 No. of Hotels No. of Rooms or Suites Occupancy ADR RevPAR Year Ended December 31, Year Ended December 31, Year Ended December 31, Brand Service Level 2021 2020 Change 2021 2020 Change 2021 2020 Change Sonesta (2) Full Service 25 8,040 47.3 % 33.3 % 14.0 pts $ 128.25 $ 122.18 5.0 % $ 60.66 $ 40.69 49.1 % Royal Sonesta (2) Full Service 17 5,663 35.7 % 23.7 % 12.0 pts 190.02 170.45 11.5 % 67.84 40.40 67.9 % Radisson Hotel Full Service 5 1,149 50.4 % 32.1 % 18.3 pts 105.23 108.73 (3.2) % 53.04 34.90 52.0 % Crowne Plaza Full Service 1 495 46.6 % 29.6 % 17.0 pts 111.83 111.50 0.3 % 52.11 33.00 57.9 % Country Inn and Suites Full Service 3 430 50.0 % 25.9 % 24.1 pts 109.10 99.25 9.9 % 54.55 25.71 112.2 % Full Service Total / Average 51 15,777 43.5 % 29.6 % 13.9 pts 143.02 133.28 7.3 % 62.21 39.45 57.7 % Sonesta Select (2) Select Service 63 8,888 41.8 % 30.9 % 10.9 pts 100.94 107.61 (6.2) % 42.19 33.25 26.9 % Hyatt Place Select Service 17 2,107 63.3 % 45.1 % 18.2 pts 101.76 92.88 9.6 % 64.41 41.89 53.8 % Courtyard Select Service 13 1,813 50.8 % 30.0 % 20.8 pts 103.14 92.68 11.3 % 52.40 27.80 88.5 % Select Service Total / Average 93 12,808 43.0 % 33.1 % 9.9 pts 101.50 102.40 (0.9) % 43.65 33.89 28.8 % Sonesta ES Suites (2) Extended Stay 91 11,379 65.4 % 53.4 % 12.0 pts 100.25 102.28 (2.0) % 65.56 54.62 20.0 % Sonesta Simply Suites (2) Extended Stay 65 8,040 66.9 % 62.2 % 4.7 pts 70.58 69.11 2.1 % 47.22 42.99 9.8 % Residence Inn Extended Stay 3 342 58.6 % 42.0 % 16.6 pts 110.01 104.26 5.5 % 64.47 43.79 47.2 % Extended Stay Total / Average 159 19,761 66.8 % 56.8 % 10.0 pts 88.08 87.51 0.7 % 58.84 49.71 18.4 % 303 48,346 53.0 % 42.0 % 11.2 pts $ 105.36 $ 100.77 4.3 % $ 55.84 $ 42.32 32.2 % Hotel Operating Statistics by Service Level - All Hotels(1) RETURN TO TABLE OF CONTENTS All operating data presented are based upon the operating results provided by our managers and tenants for the indicated periods. We have not independently verified our managers' or tenants' operating data. (1) Results of all hotels owned as of December 31, 2021. Excludes the results of hotels sold during the periods presented. (2) Includes operating data for periods prior to when certain hotels were managed by Sonesta.

 
Supplemental Q4 2021 25 (dollars in thousands) Three Months Ended For the Year Ended 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 12/31/21 12/31/20 Number of hotels 298 298 298 298 298 280 280 Room revenues $ 263,312 $ 288,188 $ 241,931 $ 147,915 $ 150,226 $ 812,506 $ 656,990 Food and beverage revenues 28,700 22,877 17,487 7,661 7,707 44,517 41,787 Other revenues 11,495 12,353 11,273 7,417 8,910 27,437 27,980 Hotel operating revenues - comparable hotels 303,507 323,418 270,691 162,993 166,843 884,460 726,757 Rooms expenses 85,800 88,324 77,933 54,639 56,857 267,010 223,641 Food and beverage expenses 23,458 18,327 14,031 8,329 9,598 38,393 43,535 Other direct and indirect expenses 119,706 121,435 104,785 106,910 96,576 385,088 350,702 Management fees 12,139 12,241 10,363 5,175 2,131 34,590 5,580 Real estate taxes, insurance and other 24,843 27,396 28,332 28,589 27,777 93,343 94,088 FF&E reserves (13) 1,236 1,411 1,135 764 390 4,046 10,178 Hotel operating expenses - comparable hotels 267,182 269,134 236,579 204,406 193,329 822,470 727,724 Hotel EBITDA $ 36,325 $ 54,284 $ 34,112 $ (41,413) $ (26,486) $ 61,990 $ (967) Loss contingency (11) — — — — (331) — (331) Adjusted Hotel EBITDA $ 36,325 $ 54,284 $ 34,112 $ (41,413) $ (26,817) $ 61,990 $ (1,298) Adjusted Hotel EBITDA Margin 12.0 % 16.8 % 12.6 % (25.4) % (16.1) % 7.0 % (0.2) % Hotel operating revenues (GAAP) (1) $ 317,215 $ 338,375 $ 280,135 $ 168,953 $ 174,520 $ 1,104,678 $ 875,098 Add (less) Hotel revenues for leased hotels — — — — 1,898 — 13,643 Hotel operating revenues from non-comparable hotels (13,708) (14,957) (9,444) (5,960) (9,575) (220,218) (161,984) Hotel operating revenues - comparable hotels $ 303,507 $ 323,418 $ 270,691 $ 162,993 $ 166,843 $ 884,460 $ 726,757 Hotel operating expenses (GAAP) (1) $ 286,968 $ 285,233 $ 243,183 $ 195,353 $ 189,898 $ 1,010,737 $ 682,804 Add (less) Hotel operating expenses from non-comparable hotels (21,643) (18,131) (13,666) (2,722) (13,192) (210,993) (215,340) Reduction for security deposit and guaranty fundings, net (3) — — 5,306 13,387 30,474 15,696 235,522 Hotel expenses for leased hotels — — — — 2,225 — 11,074 FF&E reserves from managed hotel operations (13) 1,236 1,411 1,135 764 390 4,546 11,594 Other (14) 621 621 621 621 621 2,484 2,070 Hotel operating expenses - comparable hotels $ 267,182 $ 269,134 $ 236,579 $ 204,406 $ 193,329 $ 822,470 $ 727,724 Calculation and Reconciliation of Hotel EBITDA and Adjusted Hotel EBITDA - Comparable Hotels RETURN TO TABLE OF CONTENTS See accompanying notes on page 11.

 
Supplemental Q4 2021 26 (dollars in thousands) For the Three Months Ended For the Year Ended 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 12/31/2021 12/31/2020 Number of hotels 303 304 310 310 329 303 285 Room revenues $ 272,458 $ 298,607 $ 248,618 $ 152,728 $ 159,022 $ 972,411 $ 773,572 Food and beverage revenues 31,503 25,822 18,933 8,172 7,911 84,430 66,830 Other revenues 13,254 13,946 12,584 8,053 9,485 47,837 48,339 Hotel operating revenues 317,215 338,375 280,135 168,953 176,418 1,104,678 888,741 Rooms expenses 90,705 93,035 80,910 56,578 59,784 321,228 270,828 Food and beverage expenses 26,768 21,415 15,659 9,042 9,928 72,884 75,718 Other direct and indirect expenses 126,208 125,080 107,533 99,766 97,328 458,586 422,819 Management fees 11,869 12,710 10,661 5,238 2,436 40,478 8,050 Real estate taxes, insurance and other 32,039 33,614 34,347 35,741 36,655 135,741 154,375 FF&E reserves (13) 1,236 1,411 1,135 764 390 4,546 11,274 Hotel operating expenses 288,825 287,265 250,245 207,129 206,521 1,033,463 943,064 Hotel EBITDA $ 28,390 $ 29,890 $ 29,890 $ (38,176) $ (30,103) $ 71,215 $ (54,323) Loss contingency (11) — — — — 3,962 — 3,962 Adjusted Hotel EBITDA $ 28,390 $ 29,890 $ 29,890 $ (38,176) $ (26,141) $ 71,215 $ (54,323) Adjusted Hotel EBITDA Margin 8.9 % 10.7 % 10.7 % (22.6) % (14.8) % 6.4 % (6.1) % Hotel operating revenues (GAAP) (1) $ 317,215 $ 338,375 $ 280,135 $ 168,953 $ 174,520 $ 1,104,678 $ 875,098 Add: hotel revenues of leased hotels — — — — 1,898 — 13,643 Hotel operating revenues $ 317,215 $ 338,375 $ 280,135 $ 168,953 $ 176,418 $ 1,104,678 $ 888,741 Hotel operating expenses (GAAP) (1) $ 286,968 $ 285,233 $ 243,183 $ 195,353 $ 189,898 $ 1,010,737 $ 682,804 Add (less) Reduction for security deposit and guaranty fundings, net (3) — — 5,306 10,391 13,387 15,696 235,522 Hotel expenses for leased hotels — — — — 2,225 — 11,074 FF&E reserves from managed hotel operations (13) 1,236 1,411 1,135 764 390 4,546 11,594 Other (14) 621 621 621 621 621 2,484 2,070 Hotel operating expenses $ 288,825 $ 287,265 $ 250,245 $ 207,129 $ 206,521 $ 1,033,463 $ 943,064 Calculation and Reconciliation of Hotel EBITDA and Adjusted Hotel EBITDA - All Hotels RETURN TO TABLE OF CONTENTS See accompanying notes on page 11.

 
Supplemental Q4 2021 27 Brand No. of Buildings Square Feet Investment (1) Percent of Total Investment Annualized Minimum Rent Percent of Total Annualized Minimum Rent Rent Coverage 1. TravelCenters of America 134 3,720,693 $ 2,289,189 44.6 % $ 168,012 45.4 % 2.26x 2. Petro Stopping Centers 45 1,470,004 1,021,226 19.9 % 78,099 21.1 % 1.99x 3. AMC Theatres 11 575,967 102,580 2.0 % 7,751 2.1 % 0.18x 4. The Great Escape 14 542,666 98,242 1.9 % 7,140 1.9 % 7.79x 5. Life Time Fitness 3 420,335 92,617 1.8 % 5,770 1.6 % 1.24x 6. Buehler's Fresh Foods 5 502,727 76,536 1.5 % 5,657 1.5 % 5.90x 7. Heartland Dental 59 234,274 61,120 1.2 % 4,561 1.2 % 4.36x 8. Norms 10 63,490 53,673 1.0 % 1,584 0.4 % 0.47x 9. Express Oil Change 23 83,825 49,724 1.0 % 3,717 1.0 % 4.34x 10. Regal Cinemas 6 266,546 44,476 0.9 % 3,658 1.0 % 0.17x 11. Pizza Hut 39 164,298 43,982 0.9 % 3,285 0.9 % 1.61x 12. Pilot Travel Centers 3 48,069 41,681 0.8 % 3,183 0.9 % 4.03x 13. Courthouse Athletic Club 4 193,659 39,688 0.8 % 1,850 0.5 % 1.36x 14. Fleet Farm 1 218,248 37,802 0.7 % 2,675 0.7 % 1.97x 15. Church's Chicken 44 58,401 35,370 0.7 % 2,469 0.7 % 1.83x 16. Big Al's 2 111,912 35,214 0.7 % 2,336 0.6 % 0.85x 17. B&B Theatres 4 261,300 34,369 0.7 % 2,000 0.5 % 0.16x 18. America's Auto Auction 6 72,338 34,314 0.7 % 3,216 0.9 % 5.93x 19. Burger King 21 68,710 34,289 0.7 % 2,075 0.6 % 2.65x 20. Hardee's 19 62,792 31,844 0.6 % 2,085 0.6 % 2.38x 21. Martin's 16 81,909 31,144 0.6 % 2,288 0.6 % 2.40x 22. Arby's 19 57,868 29,166 0.6 % 1,723 0.5 % 4.18x 23. Creme de la Creme 4 81,929 29,131 0.6 % 2,429 0.7 % 1.22x 24. Mister Car Wash 5 41,456 28,658 0.6 % 2,128 0.6 % 1.89x 25. Popeye's Chicken & Biscuits 20 45,708 28,434 0.6 % 1,961 0.5 % 5.18x 26. Other (1) 271 4,072,936 726,722 13.9 % 48,081 13.0 % 3.99x Total 788 13,522,060 $ 5,131,191 100.0 % $ 369,733 100.0 % 2.58x (1) Consists of 109 distinct brands with an average investment of $2,682 per building. Net Lease Portfolio by Brand As of December 31, 2021 (dollars in thousands) RETURN TO TABLE OF CONTENTS TA 065 - Seymour Seymour, IN

 
Supplemental Q4 2021 28 Industry No. of Buildings Square Feet Investment (1) Percent of Total Investment Annualized Minimum Rent Percent of Total Annualized Minimum Rent Rent Coverage 1. Travel Centers 182 5,238,766 $ 3,352,096 65.3% $ 249,293 67.5% 2.20x 2. Restaurants-Quick Service 227 739,749 301,528 5.9% 20,365 5.5% 2.92x 3. Restaurants-Casual Dining 53 415,547 192,170 3.7% 9,642 2.6% 2.00x 4. Movie Theaters 22 1,152,845 190,725 3.7% 14,008 3.8% 0.23x 5. Health and Fitness 13 873,258 185,458 3.6% 10,964 3.0% 1.45x 6. Grocery Stores 19 1,020,819 129,219 2.5% 9,180 2.5% 5.38x 7. Home Goods and Leisure 20 632,465 118,899 2.3% 9,041 2.4% 7.79x 8. Medical, Dental Office 71 409,706 118,098 2.3% 9,355 2.5% 4.19x 9. Automotive Equipment & Services 64 219,107 98,473 1.9% 7,126 1.9% 3.19x 10. Entertainment 4 199,853 61,436 1.2% 4,343 1.2% 2.18x 11. Automotive Dealers 8 137,979 60,119 1.2% 5,080 1.4% 6.16x 12. General Merchandise Stores 5 406,786 56,321 1.1% 3,892 1.1% 3.24x 13. Educational Services 9 220,758 55,647 1.1% 4,376 1.2% 1.42x 14. Miscellaneous Manufacturing 7 763,312 32,873 0.6% 2,445 0.7% 15.54x 15. Building Materials 27 429,798 31,317 0.6% 2,610 0.7% 4.20x 16. Car Washes 5 41,456 28,658 0.6% 2,128 0.6% 1.89x 17. Drug Stores and Pharmacies 7 67,423 19,251 0.4% 1,258 0.3% 1.95x 18. Sporting Goods 3 192,889 17,595 0.3% 1,081 0.2% 5.12x 19. Legal Services 5 25,429 11,362 0.2% 1,119 0.2% -2.75x 20. Dollar Stores 3 27,593 2,971 0.1% 186 0.1% 3.09x 21. Other (1) 4 77,580 10,419 0.2% 2,241 0.6% 2.52x 22. Vacant 30 228,942 56,556 1.1% — —% n/a Total 788 13,522,060 $ 5,131,191 100.0% $ 369,733 100.0% 2.58x (1) Consists of miscellaneous businesses with an average investment of $5,732 per building. Net Lease Portfolio by Industry As of December 31, 2021 (dollars in thousands) RETURN TO TABLE OF CONTENTS 1055 Sugarbush Drive Ashland, OH

 
Supplemental Q4 2021 29 Tenant Brand Affiliation No. of Buildings Square Feet Investment Percent of Total Investment Annualized Minimum Rent Percent of Total Annualized Minimum Rent Weighted Average Lease Term Rent Coverage 1. TravelCenters of America Inc.(1) TravelCenters of America / Petro Stopping Centers 179 5,190,696 $ 3,310,415 64.5 % $ 246,110 66.6 % 10.93 2.18x 2. American Multi-Cinema, Inc. AMC Theatres 11 575,967 102,580 2.0 % 7,751 2.1 % 1.08 0.18x 3. Universal Pool Co., Inc. The Great Escape 14 542,666 98,242 1.9 % 7,140 1.9 % 5.67 7.79x 4. Healthy Way of Life II, LLC Life Time Fitness 3 420,335 92,617 1.8 % 5,770 1.6 % 13.50 1.24x 5. Styx Acquisition, LLC Buehler's Fresh Foods 5 502,727 76,536 1.5 % 5,657 1.5 % 13.84 5.90x 6. Professional Resource Development, Inc. Heartland Dental 59 234,274 61,120 1.2 % 4,561 1.2 % 4.25 4.36x 7. Norms Restaurants, LLC Norms 10 63,490 53,673 1.0 % 1,584 0.4 % 23.51 0.47x 8. Express Oil Change, L.L.C. Express Oil Change 23 83,825 49,724 1.0 % 3,717 1.0 % 13.25 4.34x 9. Regal Cinemas, Inc. Regal Cinemas 6 266,546 44,476 0.9 % 3,658 1.0 % 5.91 0.17x 10. Pilot Travel Centers LLC Flying J Travel Plaza 3 48,069 41,681 0.8 % 3,183 0.9 % 6.98 4.03x Sub-total, Top 10 313 7,928,595 3,931,064 76.6 % 289,131 78.2 % 10.53 2.37x 11. Other (2) Various 475 5,593,465 1,200,127 23.4 % 80,602 21.8 % 8.83 3.35x Total 788 13,522,060 $ 5,131,191 100.0 % $ 369,733 100.0 % 10.16 2.58x (1) TA is our largest tenant. As of December 31, 2021, we leased 179 travel centers (134 under the TravelCenters of America brand and 45 under the Petro Stopping Centers brand) to a subsidiary of TA under five master leases that expire in 2029, 2031, 2032, 2033 and 2035, respectively. TA has two renewal options for 15 years each for each lease for all of the travel centers under the lease. In addition to the payment of our minimum rent, these leases provide for payment to us of percentage rent based on increases in total non-fuel revenues over base levels (3.5% of non-fuel revenues above threshold amounts defined in the leases). TA's remaining deferred rent obligation of $26,420 is due in quarterly installments of $4,404 through January 31, 2023. (2) Consists of 164 tenants with an average investment of $7,318. Net Lease Portfolio by Tenant (Top 10) As of December 31, 2021 (dollars in thousands) RETURN TO TABLE OF CONTENTS

 
Supplemental Q4 2021 30 Year (1) Square Feet Annualized Minimum Rent Expiring Percent of Total Annualized Minimum Rent Expiring Cumulative % of Total Annualized Minimum Rent Expiring 2022 384,823 2,939 0.8% 0.8% 2023 317,732 2,902 0.8% 1.6% 2024 779,371 11,639 3.1% 4.7% 2025 434,358 8,903 2.4% 7.1% 2026 1,077,985 11,970 3.2% 10.3% 2027 976,451 13,347 3.6% 13.9% 2028 562,490 9,712 2.6% 16.5% 2029 1,324,129 47,806 12.9% 29.4% 2030 138,590 4,160 1.1% 30.5% 2031 1,313,222 48,782 13.2% 43.7% 2032 1,266,322 53,390 14.4% 58.1% 2033 1,146,326 52,267 14.3% 72.4% 2034 115,646 4,057 1.1% 73.5% 2035 2,234,644 80,285 21.7% 95.2% 2036 552,708 6,878 1.9% 97.1% 2037 3,030 70 0.0% 97.1% 2038 44,484 1,048 0.3% 97.4% 2039 134,901 3,209 0.9% 98.3% 2040 115,142 2,441 0.7% 99.0% 2041 223,043 2,189 0.6% 99.6% 2042 57,499 155 —% 99.6% 2043 — — —% 99.6% 2044 — — —% 99.6% 2045 63,489 1,584 0.4% 100.0% Total 13,266,385 369,733 100.0% Weighted Average Lease Term 9.0 years 10.2 years (1) The year of lease expiration is pursuant to contract terms. Net Lease Portfolio - Expiration Schedule As of December 31, 2021 (dollars in thousands) RETURN TO TABLE OF CONTENTS 807 S. Indian Hill Boulevard Claremont, CA

 
Supplemental Q4 2021 31 As of and For the Three Months Ended 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 Properties (end of period) 788 794 796 798 799 Total square feet 13,522,060 13,574,656 13,587,068 13,598,892 13,601,689 Square feet leased 13,266,385 13,332,049 13,380,458 13,398,223 13,430,627 Percentage leased 98.1 % 98.2 % 98.5 % 98.5 % 98.7 % As of and For the Three Months Ended 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 Vacant properties beginning of period 30 32 30 18 14 Vacant property sales/ leased (2) (2) (1) (1) (4) Lease terminations 2 — 3 13 8 Vacant properties end of the period 30 30 32 30 18 Net Lease Portfolio - Occupancy Summary As of December 31, 2021 RETURN TO TABLE OF CONTENTS 2983 Cottingham Expressway Pineville, LA

 
Supplemental Q4 2021 32 Non-GAAP Financial Measures We present certain “non-GAAP financial measures” within the meaning of the applicable Securities and Exchange Commission, or SEC, rules, including FFO, Normalized FFO, EBITDA, Hotel EBITDA, Adjusted Hotel EBITDA, EBITDAre and Adjusted EBITDAre. These measures do not represent cash generated by operating activities in accordance with GAAP and should not be considered alternatives to net income (loss) as indicators of our operating performance or as measures of our liquidity. These measures should be considered in conjunction with net income (loss) as presented in our consolidated statements of income (loss). We consider these non-GAAP measures to be appropriate supplemental measures of operating performance for a REIT, along with net income (loss). We believe these measures provide useful information to investors because by excluding the effects of certain historical amounts, such as depreciation and amortization expense, they may facilitate a comparison of our operating performance between periods and with other REITs and, in the case of Hotel EBITDA, reflecting only those income and expense items that are generated and incurred at the hotel level may help both investors and management to understand the operations of our hotels. FFO and Normalized FFO: We calculate funds from operations, or FFO, and Normalized FFO as shown on page 9. FFO is calculated on the basis defined by The National Association of Real Estate Investment Trusts, or Nareit, which is net income (loss), calculated in accordance with GAAP, excluding any gain or loss on sale of properties and loss on impairment of real estate assets, if any, plus real estate depreciation and amortization, less any unrealized gains and losses on equity securities, as well as adjustments to reflect our share of FFO attributable to an investee and certain other adjustments currently not applicable to us. In calculating Normalized FFO, we adjust for the items shown on page 9. FFO and Normalized FFO are among the factors considered by our Board of Trustees when determining the amount of distributions to our shareholders. Other factors include, but are not limited to, requirements to satisfy our REIT distribution requirements, limitations in our credit agreement and public debt covenants, the availability to us of debt and equity capital, our distribution rate as a percentage of the trading price of our common shares, or dividend yield, and to the dividend yield of other REITs, our expectation of our future capital requirements and operating performance and our expected needs for and availability of cash to pay our obligations. Other real estate companies and REITs may calculate FFO and Normalized FFO differently than we do. EBITDA, EBITDAre and Adjusted EBITDAre: We calculate earnings before interest, taxes, depreciation and amortization, or EBITDA, EBITDA for real estate, or EBITDAre, and Adjusted EBITDAre as shown on page 10. EBITDAre is calculated on the basis defined by Nareit, which is EBITDA, excluding gains and losses on the sale of real estate, loss on impairment of real estate assets, if any, and adjustments to reflect our share of EBITDAre attributable to an investee. In calculating Adjusted EBITDAre, we adjust for the items shown on page 10. Other real estate companies and REITs may calculate EBITDA, EBITDAre and Adjusted EBITDAre differently than we do. Hotel EBITDA and Adjusted Hotel EBITDA: We calculate Hotel EBITDA as hotel operating revenues less hotel operating expenses of all managed and leased hotels, prior to any adjustments required for presentation in our consolidated statements of income (loss) in accordance with GAAP. Adjusted Hotel EBITDA excludes certain items we believe do not reflect the ongoing operating performance of our hotels. We believe that Hotel EBITDA and Adjusted Hotel EBITDA provide useful information to management and investors as key measures of the profitability of our hotel operations. Other Definitions Adjusted Hotel EBITDA Margin: is Adjusted Hotel EBITDA as a percentage of hotel operating revenues. Adjusted Total Assets and Total Unencumbered Assets: Adjusted total assets and total unencumbered assets include original cost of real estate assets calculated in accordance with GAAP before impairment write-downs, if any, and exclude depreciation and amortization, accounts receivable and intangible assets. Annualized Dividend Yield: Annualized dividend yield is the annualized dividend paid during the period divided by the closing price of our common shares at the end of the period. Average Daily Rate: ADR represents rooms revenue divided by the total number of room nights sold in a given period. ADR provides useful insight on pricing at our hotels and is a measure widely used in the hotel industry. Chain Scale: As characterized by STR, a data benchmark and analytics provider for the lodging industry. Comparable Hotels Data: We present RevPAR, ADR and occupancy for the periods presented on a comparable basis to facilitate comparisons between periods. We generally define comparable hotels as those that we owned on December 31, 2021 and were open and operating since the beginning of the earliest period being compared. For the three months ended December 31, 2021 and 2020, our comparable results excluded five hotels that had suspended operations during part of the periods presented. For the years ended December 31, 2021 and 2020, our comparable results excluded 23 hotels that had suspended operations during part of the periods presented. Consolidated Income Available for Debt Service: Consolidated income available for debt service, as defined in our debt agreements, is earnings from operations excluding interest expense, unrealized gains and losses on equity securities, depreciation and amortization, loss on asset impairment, unrealized appreciation on assets held for sale, gains and losses on early extinguishment of debt, gains and losses on sales of property and amortization of deferred charges. Non-GAAP Financial Measures and Certain Definitions RETURN TO TABLE OF CONTENTS

 
Supplemental Q4 2021 33 Debt: Debt amounts reflect the principal balance as of the date reported. Net debt means total debt less unrestricted cash and cash equivalents as of the date reported. FF&E Reserve: Various percentages of total sales at certain of our hotels are escrowed as reserves for future renovations or refurbishments, or FF&E reserve escrows. We own all the FF&E reserve escrows for our hotels. FF&E Reserve Deposits Not Funded by Hotel Operations: The operating agreements for our hotels generally provide that, if necessary, we will provide FF&E funding in excess of escrowed reserves. To the extent we make such fundings, our contractual annual minimum returns or rents generally increase by a percentage of the amounts we fund. Gross Book Value of Real Estate Assets: Gross book value of real estate assets is real estate properties at cost plus acquisition related costs, if any, before purchase price allocations, less impairment write-downs, if any. Investment: We define hotel investment as historical cost of our properties plus capital improvements funded by us less impairment write-downs, if any, and excludes capital improvements made from FF&E reserves funded from hotel operations that do not result in increases in minimum returns or rents. We define net lease investment as historical cost of our properties plus capital improvements funded by us less impairment write-downs, if any. Minimum Return/Rent: Each of our management agreements or leases with hotel operators provides for payment to us of an annual minimum return or minimum rent, respectively. Certain of these minimum payment amounts are secured by full or limited guarantees or security deposits. In addition, certain of our hotel management agreements provide for payment to us of additional amounts to the extent of available cash flows as defined in the management agreement. Payments of these additional amounts are not guaranteed or secured by deposits. Each of our agreements with our net lease tenants provides for payment to us of minimum rent. Certain of these minimum payment amounts are secured by full or limited guarantees. Annualized minimum rent amounts represent cash rent amounts due to us and exclude adjustments, if any, necessary to record scheduled rent changes under certain of our leases, the deferred rent obligations payable to us under our leases with TA and the estimated future payments to us under our TA leases for the cost of removing underground storage tanks at our travel centers on a straight line basis or any reimbursement of expenses paid by us. Occupancy: Occupancy represents the total number of room nights sold divided by the total number of room nights available at a hotel or group of hotels. Occupancy is an important measure of the utilization rate and demand of our hotels. Rent Coverage: We define rent coverage as earnings before interest, taxes, depreciation, amortization and rent, or EBITDAR, divided by the annual minimum rent due to us weighted by the minimum rent of the property to total minimum rents of the net lease portfolio. EBITDAR amounts used to determine rent coverage are generally for the latest twelve-month period reported based on the most recent operating information, if any, furnished by the tenant. Operating statements furnished by the tenant often are unaudited and, in certain cases, may not have been prepared in accordance with GAAP and are not independently verified by us. Tenants that do not report operating information are excluded from the rent coverage calculations. In instances where we do not have financial information for the most recent quarter from our tenants, we have calculated an implied EBITDAR for the 2021 fourth quarter using industry benchmark data to reflect current operating trends. We believe using this industry benchmark data provides a reasonable estimate of recent operating results and rent coverage for those tenants. Revenue per Available Room: RevPAR represents rooms revenue divided by the total number of room nights available to guests for a given period. RevPAR is an industry metric correlated to occupancy and ADR and helps measure revenue performance over comparable periods. Total Gross Assets: Total gross assets is total assets plus accumulated depreciation. Non-GAAP Financial Measures and Certain Definitions (Continued) RETURN TO TABLE OF CONTENTS

 
Supplemental Q4 2021 34 This supplemental operating and financial data may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Whenever we use words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “will,” “may” and negatives or derivatives of these or similar expressions, we are making forward-looking statements. These forward-looking statements are based upon our present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by our forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond our control. The information contained in our filings with the SEC, including under “Risk Factors” in our periodic reports, or incorporated therein, identifies important factors that could cause our actual results to differ materially from those stated in or implied by our forward-looking statements. Our filings with the SEC are available on the SEC's website at www.sec.gov. You should not place undue reliance upon our forward-looking statements. Except as required by law, we do not intend to update or change any forward-looking statements as a result of new information, future events or otherwise. Warning Concerning Forward-Looking Statements RETURN TO TABLE OF CONTENTS