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): November 10, 2008 (November 10, 2008)

HOSPITALITY PROPERTIES TRUST

(Exact Name of Registrant as Specified in Its Charter)

Maryland

(State or Other Jurisdiction of Incorporation)

1-11527	04-3262075
(Commission File Number)	(IRS Employer Identification No.)

400 Centre Street, Newton, Massachusetts  02458

(Address of Principal Executive Offices)   (Zip Code)

617-964-8389

(Registrant’s Telephone Number, Including Area Code)

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

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

¨Soliciting material pursuant to Rule 14a-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))

Item 2.02.  Results of Operations and Financial Condition.

On November 10, 2008, Hospitality Properties Trust, or the Company, issued a press release setting forth the Company’s results of operations and financial condition for the quarter and nine months ended September 30, 2008 and also provided certain supplemental operating and financial data for the quarter and nine months ended September 30, 2008.  Copies of the Company’s press release and supplemental operating and financial data are furnished as Exhibits 99.1 and 99.2 hereto, respectively.

Item 9.01.  Financial Statements and Exhibits.

(d)Exhibits

The Company hereby furnishes the following exhibits:

99.1	Press release dated November 10, 2008
99.2	Third Quarter 2008 Supplemental Operating and Financial Data

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SIGNATURES

Pursuant to the requirements 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.

HOSPITALITY PROPERTIES TRUST
By:	/s/ Mark L. Kleifges
Name:	Mark L. Kleifges
Title:	Treasurer and Chief Financial Officer

Dated:  November 10, 2008

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EX-99.1

Exhibit 99.1

400 Centre Street, Newton, MA 02458-2076 tel: (617) 964-8389     fax: (617) 969-5730

FOR IMMEDIATE RELEASE	Contacts:
	Timothy A. Bonang, Director of Investor Relations, or
	Carlynn Finn, Manager of Investor Relations
	(617) 796-8232
	www.hptreit.com

Hospitality Properties Trust Announces 2008 Third Quarter Results

Newton, MA (November 10, 2008).  Hospitality Properties Trust (NYSE: HPT) today announced its operating results for the quarter and nine months ended September 30, 2008.

Results for the quarter and nine months ended September 30, 2008:

HPT’s net income available for common shareholders for the three and nine month periods ended September 30, 2008 compared to the same periods in 2007 were as follows:

	Quarter Ended September 30,				Nine Months Ended September 30,
	2008		2007		2008		2007
	(in thousands, except per share data)
Net income available for common shareholders	$	32,915	$	142,390	$	56,652	$	228,215
Net income available for common shareholders per share	$	0.35	$	1.52	$	0.60	$	2.46
Weighted average common shares outstanding	93,954		93,872		93,930		92,845

Net income available for common shareholders for the quarter ended September 30, 2007, includes a $95.7 million, or $1.02 per share, gain from the sale of real estate.  During the quarter ended September 30, 2008, TravelCenters of America LLC (NYSE Alternext: TA), or TA, exercised its option to defer up to $5 million of rent per month under the previously announced rent deferral agreement, which resulted in a $15 million, or $0.16 per share, reduction in net income available for common shareholders.  The results for the quarter ended September 30, 2008 also reflect the non-accrual of $3.5 million, or $0.04 per share, of straight line rent under HPT’s lease with TA for 145 travel centers.

A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the New York Stock Exchange.
No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.

Net income available for common shareholders for the nine months ended September 30, 2007 includes a $95.7 million, or $1.03 per share, gain from the sale of real estate and $2.7 million, or $0.03 per share, of costs associated with the spin off of TA to HPT’s shareholders on January 31, 2007.  The results for the nine months ended September 30, 2008 include the impact of the $15 million, or $0.16 per share, rent deferral described above and a non-cash impairment charge of $53.2 million, or $0.57 per share, related to the write down of certain intangible assets arising from HPT’s January 2007 acquisition of TravelCenters of America, Inc. to their estimated fair market value.  The year to date 2008 results also reflect the non-accrual of $7 million, or $0.07 per share, of straight line rent for the quarters ended June 30, 2008 and September 30, 2008, related to HPT’s lease with TA for 145 travel centers, and a non-cash charge of $19.6 million, or $0.21 per share, to record a reserve for the straight line rent receivable recorded in periods prior to April 1, 2008.

HPT’s funds from operations, or FFO, for the three and nine month periods ended September 30, 2008 compared to the same periods in 2007 were as follows:

	Quarter Ended September 30,				Nine Months Ended September 30,
	2008		2007		2008		2007
	(in thousands, except per share data)
Funds from operations	$	99,758	$	113,572	$	308,153	$	323,575
FFO per share	$	1.06	$	1.21	$	3.28	$	3.49
Weighted average common shares outstanding	93,954		93,872		93,930		92,845

FFO for the quarter ended September 30, 2008 was affected by TA’s deferral of rent and the non-accrual of straight line rent discussed above.

FFO for the nine months ended September 30, 2008 was affected by TA’s deferral of rent, the non-accrual of straight line rent and the non-cash charge to record a reserve for straight line rent discussed above. See page 5 for a reconciliation of FFO to net income available to common shareholders.

Hotel Portfolio Performance:

For the quarter and nine months ended September 30, 2008 compared to the same periods last year, hotels owned by HPT produced revenue per available room, or RevPAR, average daily rate, or ADR, and occupancy as follows:

	Quarter Ended September 30,					Nine Months Ended September 30,
	2008		2007		Change	2008		2007		Change
RevPAR	$	79.92	$	79.70	0.3%	$	79.80	$	78.57	1.6%
ADR	$	106.99	$	105.42	1.5%	$	109.76	$	107.19	2.4%
Occupancy	74.7%		75.6%		-0.9 pt	72.7%		73.3%		-0.6 pt

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Common Dividend:

On October 2, 2008, HPT announced a regular quarterly common dividend of $0.77 per share payable to shareholders of record on October 15, 2008; this dividend will be paid on or about November 17, 2008.

Conference Call:

On Tuesday, November 11, 2008, at 11:00 a.m. Eastern Time, John Murray, President and Chief Operating Officer, and Mark Kleifges, Treasurer and Chief Financial Officer, will host a conference call to discuss the results for the quarter and nine months ended September 30, 2008.

The conference call telephone number is (800) 811-8830.  Participants calling from outside the United States and Canada should dial (913) 312-1267.  No pass code is necessary to access the call from either number.  Participants should dial in about 15 minutes prior to the scheduled start of the call.  A replay of the conference call will be available through Tuesday, November 18, 2008.  To hear the replay, dial (888) 203-1112.  The replay pass code is 7613249.

A live audio webcast of the conference call will also be available in a listen only mode on the company’s web site, which is located at www.hptreit.com.  Participants wanting to access the webcast should visit the company’s web site about five minutes before the call.  The archived webcast will be available for replay on HPT’s web site for about one week after the call.

Supplemental Data:

A copy of HPT’s Third Quarter 2008 Supplemental Operating and Financial Data is available for download at HPT’s web site, www.hptreit.com.

Hospitality Properties Trust is a real estate investment trust, or REIT, which owns 290 hotels and 185 travel centers located in 44 states, Puerto Rico and Canada. HPT is headquartered in Newton, Massachusetts.

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Hospitality Properties Trust

CONSOLIDATED STATEMENT OF INCOME AND FUNDS FROM OPERATIONS

(in thousands, except per share data)

(Unaudited)

	Quarter Ended September 30,						Nine Months Ended September 30,
	2008			2007			2008			2007
Revenues:
Hotel operating revenues (1)	$	233,393		$	240,179		$	700,399		$	714,424
Rental income (1)(2)	72,824			87,669			250,341			222,819
FF&E reserve income (3)	6,095			5,785			18,620			16,993
Interest income	271			677			1,177			4,483
Total revenues	312,583			334,310			970,537			958,719
Expenses:
Hotel operating expenses (1)	166,896			174,533			500,743			519,242
Interest (including amortization of deferred financing costs of $1,009, $956, $3,056 and $2,608, respectively)	36,529			38,038			110,626			102,488
Depreciation and amortization	60,449			57,647			178,277			160,470
General and administrative	7,881			10,848			28,920			27,801
TA spin off costs (4)	—			—			—			2,711
Reserve for straight line rent receivable (5)	—			—			19,613			—
Loss on asset impairment (6)	—			—			53,225			—
Total expenses	271,755			281,066			891,404			812,712
Income before gain on sale of real estate and income taxes	40,828			53,244			79,133			146,007
Gain on sale of real estate (7)	—			—			1,274			—
Income before income taxes	40,828			53,244			80,407			146,007
Income tax expense	(443		)	(422		)	(1,345		)	(1,644		)
Income from continuing operations	40,385			52,822			79,062			144,363
Discontinued operations: (8)
Income from discontinued operations	—			1,327			—			7,440
Gain on sale of real estate used by discontinued operations	—			95,711			—			95,711
	—			97,038			—			103,151
Net income	40,385			149,860			79,062			247,514
Preferred distributions	(7,470		)	(7,470		)	(22,410		)	(19,299		)
Net income available for common shareholders	$	32,915		$	142,390		$	56,652		$	228,215
Calculation of FFO (9):
Net income available for common shareholders	$	32,915		$	142,390		$	56,652		$	228,215
Add:        FF&E deposits not in net income (discontinued                   operations) (3)	—			—			—			990
Depreciation and amortization (continuing operations)	60,449			57,647			178,277			160,470
Depreciation and amortization (discontinuedoperations) (8)	—			129			—			1,636
Deferred percentage rent (continuing operations) (10)	1,283			1,651			4,385			4,748
Deferred additional returns (continuing operations) (11)	5,111			7,723			16,888			20,516
Loss on asset impairment (continuing operations) (6)	—			—			53,225			—
TA spin off costs (continuing operations) (4)	—			—			—			2,711
Less:        Gain on sale of real estate (continuing operations) (7)	—			—			(1,274		)	—
Gain on sale of real estate (discontinued operations) (8)	—			(95,711		)	—			(95,711		)
Deferred percentage rent (discontinued operations) (8)	—			(257		)	—			—
Funds from operations (“FFO”)	$	99,758		$	113,572		$	308,153		$	323,575
Weighted average common shares outstanding	93,954			93,872			93,930			92,845
Per common share amounts:
Income from continuing operations available for common shareholders	$	0.35		$	0.48		$	0.60		$	1.35
Income from discontinued operations available for common shareholders	$	0.00		$	1.03		$	0.00		$	1.11
Net income available for common shareholders	$	0.35		$	1.52		$	0.60		$	2.46
FFO (9)	$	1.06		$	1.21		$	3.28		$	3.49
Common distributions declared	$	0.77		$	0.77		$	2.31		$	2.29

See Notes on page 5

4

(1)	At September 30, 2008, each of our 290 hotels are included in one of eleven operating agreements of which 198 are leased to our taxable REIT subsidiaries and managed by independent hotel operating companies and 92 are leased to third parties. Our 185 travel centers are leased under two agreements. Our consolidated statement of income includes hotel operating revenues and expenses of managed hotels and rental income from our leased hotels and travel centers.
(2)	During the third quarter of 2008, TravelCenters of America LLC, or TA, elected to defer $15,000, or $0.16 per share, of rent in accordance with the previously announced rent deferral agreement. We have not recognized the deferred rent as revenue due to uncertainties regarding its payment by TA.
(3)	Various percentages of total sales at most of our hotels are escrowed as reserves for future renovations or refurbishment, or FF&E Reserve escrows. At September 30, 2008, we own all the FF&E escrows for our hotels. Through July 26, 2007, we had a security and remainder interest in the FF&E Reserve escrows for our former Homestead Studio Suites hotels (see Note 7). When we own the FF&E Reserve escrows at hotels leased to third parties we report payments into the escrow as additional rent. When we had a security and remainder interest in the FF&E Reserve escrows of our Homestead Studio Suites hotels, deposits were not included in revenue. We do not report the amounts which are escrowed as FF&E reserves for our managed hotels as FF&E reserve income in our consolidated statement of income.
(4)	During the first quarter of 2007, we expensed $2,711 of costs in connection with the spin off of our former subsidiary, TA, to our shareholders on January 31, 2007.
(5)	During the second quarter of 2008, we recorded a $19,613, or $0.21 per share, non-cash reserve for the straight line rent receivable relating to our lease with TA for 145 travel centers.
(6)	During the second quarter of 2008, we recorded a $53,225, or $0.57 per share, non-cash loss on asset impairment related to the write down of certain intangible assets arising from our January 2007 TA acquisition to their estimated fair value.
(7)	On February 5, 2008, we sold our Park Plaza hotel in North Phoenix, Arizona for $8,000 and recognized a gain on sale of $645. On June 18, 2008, we sold our AmeriSuites hotel in Atlantic Beach, North Carolina for $6,350 and recognized a gain on sale of $629.
(8)	Income from discontinued operations relates to the 18 Homestead Studio Suites hotels that we sold in July 2007. We have reclassified our consolidated statement of income for all periods presented to show the results of operations of these hotels which have been sold as discontinued.
(9)	We compute FFO as shown. Our calculation of FFO differs from the National Association of Real Estate Investment Trusts, or NAREIT, definition because we include FF&E deposits not included in net income (loss) (see Note 3), deferred percentage rent (see Note 10) and deferred additional returns (see Note 11) and exclude loss on asset impairment (see Note 6) and TA spin off costs (see Note 4). We consider FFO to be an appropriate measure of performance for a REIT, along with net income and cash flows from operating, investing and financing activities. We believe that FFO provides useful information to investors because by excluding the effects of certain historical costs, such as depreciation expense, it may facilitate comparison of operating performance among REITs. FFO does not represent cash generated by operating activities in accordance with generally accepted accounting principles, or GAAP, and should not be considered an alternative to net income or cash flow from operating activities as a measure of financial performance or liquidity. FFO is among the important factors considered by our board of trustees when determining the amount of distributions to shareholders. Other important factors include, but are not limited to, requirements to maintain our status as a REIT, limitations in our revolving credit facility and public debt covenants, the availability of debt and equity capital to us and our expectation of our future capital needs and operating performance.
(10)	In calculating net income (loss) we recognize percentage rental income received for the first, second and third quarters in the fourth quarter, which is when all contingencies are met and the income is earned. Although we defer recognition of this revenue until the fourth quarter for purposes of calculating net income, we include these amounts in the calculation of FFO for each quarter of the year. The fourth quarter FFO calculation excludes the amounts recognized during the first three quarters.
(11)	Our share of the operating results of our managed hotels in excess of the minimum returns due to us, or additional returns, are generally determined based upon annual calculations. In calculating net income (loss), we recognize additional returns in the fourth quarter, which is when all contingencies are met and the income is earned. Although we defer recognition of this income until the fourth quarter for purposes of calculating net income (loss), we include these amounts in the calculation of FFO for each quarter of the year. The fourth quarter FFO calculation excludes the amounts recognized during the first three quarters.

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Hospitality Properties Trust

CONSOLIDATED BALANCE SHEET

 (dollars in thousands, except share data)

	September 30,			December 31,
	2008			2007
	(Unaudited)
ASSETS
Real estate properties, at cost:
Land	$	1,392,605		$	1,377,520
Buildings, improvements and equipment	4,973,679			4,818,711
	6,366,284			6,196,231
Accumulated depreciation	(1,004,065		)	(849,470		)
	5,362,219			5,346,761
Cash and cash equivalents	9,301			23,401
Restricted cash (FF&E reserve escrow)	37,485			28,134
Other assets, net	186,570			281,011
	$	5,595,575		$	5,679,307
LIABILITIES AND SHAREHOLDERS’ EQUITY
Revolving credit facility	$	407,000		$	158,000
Senior notes, net of discounts	1,693,487			1,842,756
Convertible senior notes	575,000			575,000
Mortgage payable	3,578			3,635
Security deposits	169,414			169,406
Accounts payable and other liabilities	102,322			134,705
Due to affiliate	11,806			4,617
Dividends payable	4,754			4,754
Total liabilities	2,967,361			2,892,873
Commitments and contingencies
Shareholders’ equity:
Preferred shares of beneficial interest; no par value; 100,000,000 shares authorized:
Series B preferred shares; 8 7/8% cumulative redeemable; 3,450,000 shares issued and outstanding, aggregate liquidation preference $86,250	83,306			83,306
Series C preferred shares; 7% cumulativeredeemable; 12,700,000 shares issued and outstanding, aggregate liquidation preference $317,500	306,833			306,833
Common shares of beneficial interest, $0.01 par value; 150,000,000 shares authorized; 93,982,385 and 93,892,719 shares issued and outstanding, respectively	940			939
Additional paid-in capital	3,050,987			3,048,881
Accumulated other comprehensive loss	(40		)	—
Cumulative net income	1,790,140			1,711,079
Cumulative preferred distributions	(116,171		)	(93,761		)
Cumulative common distributions	(2,487,781		)	(2,270,843		)
Total shareholders’ equity	2,628,214			2,786,434
	$	5,595,575		$	5,679,307

(end)

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EX-99.2

Exhibit 99.2

HOSPITALITY PROPERTIES TRUST

Third Quarter 2008

Supplemental Operating and Financial Data

Unless otherwise noted all amounts in this report are unaudited.

TABLE OF CONTENTS

	Page
CORPORATE INFORMATION
Company Profile	5
Investor Information	6
Research Coverage	7
FINANCIAL INFORMATION
Key Financial Data	9
Consolidated Balance Sheet	10
Consolidated Statement of Income	11
Notes to Consolidated Statement of Income	12
Consolidated Statement of Cash Flows	13
Calculation of EBITDA	14
Calculation of Funds from Operations (FFO)	15
Segment Information	16
Debt Summary	18
Debt Maturity Schedule	19
Leverage Ratios, Coverage Ratios and Public Debt Covenants	20
FF&E Reserve Escrows	21
2008 Acquisitions and Dispositions Information	22
2008 Financing Activities	23
OPERATING AGREEMENTS AND PORTFOLIO INFORMATION
Summary of Operating Agreements	25
Portfolio by Operating Agreement, Manager and Brand	26
Operating Statistics by Hotel Operating Agreement	27
Coverage by Operating Agreement	28
Operating Agreement Expiration Schedule	29

2

WARNING REGARDING FORWARD LOOKING STATEMENTS

THIS SUPPLEMENTAL OPERATING AND FINANCIAL DATA REPORT CONTAINS STATEMENTS WHICH CONSTITUTE FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER FEDERAL SECURITIES LAWS.  THESE FORWARD LOOKING STATEMENTS APPEAR IN A NUMBER OF PLACES IN THIS REPORT AND INCLUDE BUT ARE NOT LIMITED TO STATEMENTS REGARDING OUR INTENT, BELIEF OR EXPECTATION, OR THE INTENT, BELIEF OR EXPECTATION OF OUR TRUSTEES AND OFFICERS WITH RESPECT TO:

·OUR MANAGERS’ OR TENANTS’ ABILITIES TO PAY RETURNS OR RENT TO US;

·OUR ABILITY TO PURCHASE ADDITIONAL PROPERTIES;

·OUR INTENT TO REFURBISH, REBRAND OR MAKE IMPROVEMENTS TO CERTAIN OF OUR PROPERTIES;

·OUR ABILITY TO PAY INTEREST AND DEBT PRINCIPAL AND MAKE DISTRIBUTIONS;

·OUR POLICIES AND PLANS REGARDING INVESTMENTS AND FINANCINGS;

·OUR TAX STATUS AS A REAL ESTATE INVESTMENT TRUST;

·OUR ABILITY TO APPROPRIATELY BALANCE THE USE OF DEBT AND EQUITY AND TO RAISE CAPITAL; AND

·OTHER MATTERS.

ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTAINED IN OR IMPLIED BY THESE FORWARD LOOKING STATEMENTS AS A RESULT OF VARIOUS FACTORS.  SUCH FACTORS INCLUDE, WITHOUT LIMITATION:

·THE IMPACT OF CHANGES IN THE ECONOMY AND THE CAPITAL MARKETS, INCLUDING THE RECENT CHANGES IN THE CAPITAL MARKETS, ON US AND OUR MANAGERS AND TENANTS;

·COMPLIANCE WITH AND CHANGES TO LAWS AND REGULATIONS AFFECTING THE REAL ESTATE, HOTEL, TRANSPORATION AND TRAVEL CENTER INDUSTRIES; AND

·COMPETITION WITHIN THE REAL ESTATE, HOTEL AND TRAVEL CENTER INDUSTRIES GENERALLY AND AMONG REITS.

FOR EXAMPLE:

·IF THE AVAILABILITY OF DEBT CAPITAL REMAINS RESTRICTED OR BECOMES MORE RESTRICTED, WE MAY BE UNABLE TO REFINANCE OR REPAY OUR DEBT OBLIGATIONS WHEN THEY BECOME DUE OR ON TERMS WHICH ARE AS FAVORABLE AS WE NOW HAVE;

·HOTEL ROOM DEMAND IS USUALLY A REFLECTION OF GENERAL ECONOMIC ACTIVITY IN THE UNITED STATES; AND IF HOTEL ROOM DEMAND BECOMES FURTHER DEPRESSED BECAUSE OF THE GENERAL SLOWING OF THE ECONOMY, THE OPERATING RESULTS OF OUR HOTELS MAY DECLINE, THE FINANCIAL RESULTS OF OUR MANAGERS AND TENANTS MAY DECLINE AND OUR MANAGERS AND TENANTS MAY BE UNABLE TO PAY OUR RETURNS OR RENTS;

·THE PRICE WHICH TA MUST PAY TO PURCHASE DIESEL FUEL AND OTHER PRODUCTS WHICH IT SELLS MAY MATERIALLY INCREASE, AND THESE PRICE INCREASES MAY INCREASE TA’S WORKING CAPITAL REQUIREMENTS MORE THAN CURRENTLY EXPECTED;

·THE CURRENT SLOWING OF THE U.S. ECONOMY MAY CONTINUE FOR LONGER OR BE WORSE THEN WE NOW ANTICIPATE.  SUCH CIRCUMSTANCES MAY FURTHER REDUCE THE DEMAND FOR TA’S GOODS AND SERVICES AND REDUCE TA’S ABILITY TO GENERATE THE CASH FLOWS NECESSARY TO PAY OUR RENTS;

3

·FUEL CONSERVATION EFFORTS, AN EXTENDED PERIOD OF LIMITED ACTIVITY IN THE HOUSING DEVELOPMENT INDUSTRY OR A SIGNIFICANT AND PROLONGED DECLINE IN THE IMPORT INTO THE U.S. OF CONSUMER GOODS, EACH OF WHICH MAY AFFECT THE DEMAND FOR TA’S GOODS AND SERVICES BY TRUCKERS, WOULD ADVERSELY AFFECT TA’S BUSINESS AND TA’S ABILITY TO PAY RENTS, INCLUDING DEFERRED AMOUNTS DUE TO US; OR

·TA MAY BE OR BECOME UNABLE TO PROPERLY MANAGE ITS BUSINESS TO PRODUCE ADEQUATE CASH FLOWS TO PAY ITS OBLIGATIONS; AND

·WE MAY BE UNABLE TO IDENTIFY PROPERTIES THAT WE WANT TO ACQUIRE OR TO NEGOTIATE ACCEPTABLE PURCHASE PRICES, AQCUISITION FINANCING TERMS, MANAGEMENT AGREEMENTS OR LEASE TERMS FOR NEW PROPERTIES.

THESE RESULTS COULD OCCUR FOR MANY DIFFERENT REASONS, SOME OF WHICH, SUCH AS NATURAL DISASTERS OR CHANGES IN OUR MANAGERS’ OR TENANTS’ REVENUES OR COSTS, OR CHANGES IN CAPITAL MARKETS OR THE ECONOMY GENERALLY, ARE BEYOND OUR CONTROL.

OTHER RISKS MAY ADVERSELY IMPACT US, AS DESCRIBED MORE FULLY IN OUR ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2007 UNDER “ITEM 1A. RISK FACTORS.”

FORWARD LOOKING STATEMENTS ARE NOT GUARANTEED TO OCCUR AND MAY NOT OCCUR.

YOU SHOULD NOT PLACE UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS.

EXCEPT AS REQUIRED BY LAW, WE UNDERTAKE NO OBLIGATION TO UPDATE ANY FORWARD LOOKING STATEMENTS AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE.

4

CORPORATE INFORMATION

Hospitality Properties Trust

Supplemental Operating and Financial Data

September 30, 2008

COMPANY PROFILE

The Company:

Hospitality Properties Trust is a real estate investment trust, or REIT.  As of September 30, 2008, we owned 290 hotels and 185 travel centers located in 44 states, Puerto Rico, and Canada. At September 30, 2008, our properties were operated by operating companies under thirteen long term management or lease agreements. We are the only investment grade rated, publicly owned hospitality REIT in the Country and we are currently included in a number of financial indices, including the S&P 400 MidCap Index, the Russell 1000 Index, the MSCI U.S. REIT index, the FTSE EPRA/NAREIT United States index and the S&P REIT Composite index.

Management:

Hospitality Properties Trust is managed by Reit Management & Research LLC, or RMR. RMR was founded in 1986 to manage public investments in real estate. As of September 30, 2008, RMR managed one of the largest portfolios of publicly owned real estate in the United States, including over 1,300 properties, located in 45 states, Washington, DC, Puerto Rico and Ontario, Canada. RMR has approximately 550 employees in its headquarters and regional offices located throughout the Country.  In addition to managing HPT, RMR and its affiliates also manage HRPT Properties Trust, a publicly traded REIT that primarily owns office buildings and industrial properties, Senior Housing Properties Trust, a publicly traded REIT that primarily owns healthcare properties, eight publicly offered mutual funds, which principally invest in securities of real estate companies (excluding securities of companies managed by RMR and its affiliates) and two real estate based operating companies in the healthcare and travel center industries including TravelCenters of America LLC which is our largest tenant. The public companies managed by RMR and its affiliates had combined total market capitalization of nearly $14 billion as of September 30, 2008. We believe that being managed by RMR is a competitive advantage for HPT because RMR provides HPT with a depth of management and experience which may be unequaled in the real estate industry.  We also believe RMR provides management services to HPT at costs that are lower than HPT would have to pay for similar quality services.

Strategy:

Our business strategy is to maintain and grow an investment portfolio of high quality hotels and travel centers operated by experienced managers. Our properties are managed or leased under long term agreements that provide us cash flows in the form of minimum returns and rents. We also seek to participate in operating improvements at our properties by charging rent increases based upon percentages of gross revenue increases at our leased properties and participating in hotel profits in excess of the minimum returns due to us at our managed hotels. Generally, we prefer to purchase multiple properties in one transaction because we believe a single operating agreement for multiple properties in diverse locations enhances the stability of our cash flows. When we buy individual properties we usually add those properties to a combination lease or management agreement for other properties that we own. We have a conservative capital structure and limit the amount of debt financing we use. We do not have any investments in joint ventures or partnerships.

Stock Exchange Listing:	Corporate Headquarters:
New York Stock Exchange	400 Centre Street
	Newton, MA 02458
Trading Symbol:	(t)  (617) 964-8389
	(f)  (617) 969-5730

Common Shares — HPT

Preferred Shares Series B — HPT-B

Preferred Shares Series C — HPT-C

Senior Unsecured Debt Ratings:

Standard & Poor’s — BBB

Moody’s — Baa2

Portfolio Data by Manager (as of 9/30/08):

									Percent
			Percent of				Annualized		of Total
		Number	Number			Percent of	Minimum		Minimum
	Number of	of Rooms	of Rooms	Investment		Total	Return /		Return /
Manager	Properties	/Suites (1)	/Suites (1)	(000s)		Investment	Rent (000s)		Rent
InterContinental	131	20,140	47%	$	1,778,756	28%	$	153,270	27%
Marriott International	125	17,919	42%	1,540,896		24%	157,380		27%
Hyatt	23	2,784	6%	303,844		5%	21,937		4%
Carlson	11	2,096	5%	202,251		3%	12,920		2%
TA (2)(3)	185	N/A	N/A	2,530,300		40%	226,078		40%
Total	475	42,939	100%	$	6,356,047	100%	$	571,585	100%

Operating Statistics by Operating Agreement (Q3 2008):

			Annualized		Percent
		Number	Minimum		of Total			RevPAR
	Number of	of Rooms	Return /		Minimum	Coverage (4)		Change (5)
Operating Agreement	Properties	/Suites (1)	Rent (000s)		Return / Rent	Q3	LTM	Q3	LTM
InterContinental (no. 1)	31	3,844	$	37,882	7%	1.28x	1.15x	2.3%	4.7%
InterContinental (no. 2)	76	9,220	50,000		9%	1.56x	1.42x	0.4%	0.7%
InterContinental (no. 3)	14	4,139	44,258		8%	1.18x	1.32x	-2.8%	1.7%
InterContinental (no. 4)	10	2,937	21,130		4%	0.95x	1.15x	7.2%	1.9%
Marriott (no. 1)	53	7,610	58,636		10%	1.58x	1.56x	-3.4%	1.0%
Marriott (no. 2)	18	2,178	20,739		3%	1.36x	1.21x	2.3%	-0.1%
Marriott (no. 3) (6)	34	5,019	43,974		8%	1.30x	1.24x	-2.4%	0.1%
Marriott (no. 4)	19	2,756	28,509		5%	0.95x	1.21x	-1.9%	2.5%
Marriott (no. 5) (6)	1	356	5,522		1%	0.44x	0.48x	-4.9%	-0.1%
Hyatt	23	2,784	21,937		4%	1.10x	0.99x	23.7%	29.7
Carlson	11	2,096	12,920		2%	1.40x	1.51x	-4.4%	1.8%
TA (no. 1) (2)(3)	145	N/A	159,901		28%	1.80x	1.24x	N/A	N/A
TA (no. 2) (2)	40	N/A	66,177		11%	1.92x	1.33x	N/A	N/A
Total / Average	475	42,939	$	571,585	100%			0.3%	2.7%

(1)	18 of our TA properties include hotels. The rooms associated with these hotels have been excluded from total number of rooms.
(2)	Effective July 1, 2008, we entered a rent deferral arrangement with TA which provides TA the option to defer payments of up to $5,000/month of rent under its two leases for the period July 1, 2008 until December 31, 2010. For the quarter ended September 30, 2008, TA deferred $15,000 in rents. TA rents presented in this report represent their contractual obligation and do not reflect any rent deferral.
(3)	The amount of annual minimum rent payable to us under TA agreement no. 1 is scheduled to increase to $163,978, $168,055, $173,135 and $178,216 in 2009, 2010, 2011 and 2012, respectively.
(4)	We define coverage as combined total property sales minus all property level expenses which are not subordinated to minimum payments to us and the required FF&E reserve contributions, divided by the minimum return or minimum rent payments due to us. For some combinations, amounts have been calculated using data for periods prior to our ownership of certain properties and prior to commencement of our operating agreements. TA rent coverage ratios have been calculated based upon the contractual rent amounts and do not reflect the impact of any rent deferrals (see Note 2).
(5)	We define RevPAR as hotel room revenue per day per available room. RevPar change is the RevPar percentage change in the periods ending September 30, 2008 over the comparable year earlier periods.
(6)	Effective January 1, 2008 we entered into a new lease for our Marriott Kauai Resort Beach Club hotel with a subsidiary of Marriott International, Inc. This hotel was previously included in Marriott agreement no. 3 and leased to one of our taxable REIT subsidiaries. The rent due to us for this hotel is guaranteed by Marriott International, Inc.

5

Hospitality Properties Trust

Supplemental Operating and Financial Data

September 30, 2008

INVESTOR INFORMATION

Board of Trustees

Barry M. Portnoy	Adam D. Portnoy
Managing Trustee	Managing Trustee
Frank J. Bailey	William A. Lamkin
Independent Trustee	Independent Trustee
John L. Harrington
Independent Trustee
Senior Management
John G. Murray	Mark L. Kleifges
President, Chief Operating Officer and Secretary	Treasurer and Chief Financial Officer
Ethan S. Bornstein
Senior Vice President
Contact Information
Investor Relations	Inquiries
Hospitality Properties Trust	Financial inquiries should be directed to Mark L. Kleifges,
400 Centre Street	Treasurer and Chief Financial Officer, at (617) 964-8389
Newton, MA 02458	or mkleifges@reitmr.com.
(t) (617) 964-8389
(f) (617) 969-5730	Investor and media inquiries should be directed to
(email) info@hptreit.com	Timothy A. Bonang, Director of Investor Relations, at
(website) www.hptreit.com	(617) 796-8232 or tbonang@hptreit.com, or Carlynn Finn,
	Manager of Investor Relations at (617) 796-8232
	or cfinn@hptreit.com

6

Hospitality Properties Trust

Supplemental Operating and Financial Data

September 30, 2008

RESEARCH COVERAGE

Equity Research Coverage

Keefe, Bruyette & Woods	Stifel, Nicolaus
Smedes Rose	Rod Petrik
(212) 887-3696	(410) 454-4131
Morgan Keegan	UBS
Napoleon Overton	William Truelove
(901) 579-4865	(212) 713-8825
Morgan Stanley	Wachovia Securities
Celeste Mellet Brown	Jeffrey Donnelly
(212) 761-3896	(617) 603-4262
RBC
Mike Salinsky
(216) 378-7627
Debt Research Coverage
Credit Suisse	UBS
Ee Lin See	Michael Dimler
(212) 538-5785	(203) 719-3841
Wachovia Securities
Thierry Perrein
(704) 715-8455
Rating Agencies
Moody’s Investors Service	Standard and Poor’s
Maria Maslovsky	Beth Campbell
(212) 553-4831	(212) 438-2415

HPT 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 HPT’s performance made by these analysts or agencies do not represent opinions, forecasts or predictions of HPT or its management.  HPT 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.

7

FINANCIAL INFORMATION

Hospitality Properties Trust

Supplemental Operating and Financial Data

September 30, 2008

KEY FINANCIAL DATA

(amounts in thousands, except per share data)

	As of and For the Three Months Ended
	9/30/2008		6/30/2008		3/31/2008		12/31/2007		9/30/2007
Shares Outstanding:
Common shares outstanding (at end of period)	93,982		93,951		93,893		93,893		93,890
Weighted average common shares outstanding - basic and diluted (1)	93,954		93,942		93,893		93,891		93,872
Common Share Data:
Price at end of period	$	20.52	$	24.46	$	34.02	$	32.22	$	40.65
High during period	$	24.80	$	34.43	$	37.17	$	43.18	$	44.30
Low during period	$	18.87	$	24.26	$	29.50	$	32.02	$	36.00
Annualized dividends paid per share	$	3.08	$	3.08	$	3.08	$	3.08	$	3.08
Annualized dividend yield (at end of period)	15.0%		12.6%		9.1%		9.6%		7.6%
Book Capitalization:
Total debt	$	2,679,065	$	2,672,842	$	2,667,619	$	2,579,391	$	2,558,154
Plus: total shareholders’ equity	2,628,214		2,667,460		2,762,420		2,786,434		2,782,728
Total book capitalization	$	5,307,279	$	5,340,302	$	5,430,039	$	5,365,825	$	5,340,882
Total debt / total book capitalization	50.5%		50.1%		49.1%		48.1%		47.9%
Selected Balance Sheet Data:
Total assets	$	5,595,575	$	5,641,875	$	5,711,717	$	5,679,307	$	5,647,155
Total liabilities	$	2,967,361	$	2,974,415	$	2,949,297	$	2,892,873	$	2,864,427
Real estate, at cost	$	6,366,284	$	6,351,168	$	6,264,855	$	6,196,231	$	6,154,580
Total debt / real estate, at cost	42.1%		42.1%		42.6%		41.6%		41.6%
Market Capitalization:
Total debt (book value)	$	2,679,065	$	2,672,842	$	2,667,619	$	2,579,391	$	2,558,154
Plus: market value of preferred shares (at end of period)	206,965		293,808		331,157		314,333		362,717
Plus: market value of common shares (at end of period)	1,928,511		2,298,041		3,194,240		3,025,232		3,816,629
Total market capitalization	$	4,814,541	$	5,264,691	$	6,193,016	$	5,918,956	$	6,737,500
Total debt / total market capitalization	55.6%		50.8%		43.1%		43.6%		38.0%
Selected Income Statement Data:
Total revenues	$	312,583	$	338,775	$	319,179	$	326,760	$	334,310
EBITDA (2)(5)	$	144,200	$	141,963	$	156,371	$	154,317	$	159,502
Net income available for common shareholders (3)(4)(5)(6)	$	32,915	$	(24,549)	$	48,286	$	75,984	$	142,390
Funds from operations (FFO) available for common shareholders (3)(5)(7)	$	99,758	$	97,491	$	110,904	$	108,270	$	113,572
Common distributions declared	$	72,366	$	72,342	$	72,298	$	72,298	$	72,295
Per Share Data:
Income from continuing operations available for common shareholders (3)(4)(5)	$	0.35	$	(0.26)	$	0.51	$	0.81	$	0.48
Income from discontinued operations available for common shareholders (6)	$	—	$	—	$	—	$	—	$	1.03
Net income available for common shareholders (3)(4)(5)(6)	$	0.35	$	(0.26)	$	0.51	$	0.81	$	1.52
FFO available for common shareholders (3)(5)(7)	$	1.06	$	1.04	$	1.18	$	1.15	$	1.21
Common distributions declared	$	0.77	$	0.77	$	0.77	$	0.77	$	0.77
FFO payout ratio	72.5%		74.2%		65.2%		67.0%		63.6%
Coverage Ratios:
EBITDA (2) / interest expense	3.9x		3.9x		4.2x		4.1x		4.2x
EBITDA (2) / interest expense and preferred distributions	3.3x		3.2x		3.5x		3.4x		3.5x

(1)	HPT had no outstanding dilutive common share equivalents during the periods presented.
(2)	See page 14 for our calculation of EBITDA.
(3)	Includes for the quarter ended June 30, 2008, a $53,225, or a $0.57 per share, non-cash loss on impairment related to the writedown of certain intangible assets arising from our acquisition of TA to their estimated fair value.
(4)	Includes for the quarter ended September 30, 2008, a $15,000, or $0.16 per share, rent deferral by TA. We have not recognized the deferred rent as revenue due to uncertainties regarding its payment by TA.
(5)	Includes for the quarter ended June 30, 2008, $19,613, or a $0.21 per share, reserve for the straight line rent receivable relating to our TA No 1. lease.
(6)	Includes for the quarter ended September 30, 2007, a $95,711, or a $1.02 per share, gain from the sale of real estate.
(7)	See page 15 for our calculation of FFO.

9

Hospitality Properties Trust

 Supplemental Operating and Financial Data

 September 30, 2008

 CONSOLIDATED BALANCE SHEET

 (dollars in thousands, except share data)

	As of September 30, 2008			As of December 31, 2007
				(Audited)
ASSETS
Real estate properties, at cost:
Land	$	1,392,605		$	1,377,520
Buildings, improvements and equipment	4,973,679			4,818,711
	6,366,284			6,196,231
Accumulated depreciation	(1,004,065		)	(849,470		)
	5,362,219			5,346,761
Cash and cash equivalents	9,301			23,401
Restricted cash (FF&E reserve escrow)	37,485			28,134
Other assets, net	186,570			281,011
	$	5,595,575		$	5,679,307
LIABILITIES AND SHAREHOLDERS’ EQUITY
Revolving credit facility	$	407,000		$	158,000
Senior notes, net of discounts	1,693,487			1,842,756
Convertible senior notes	575,000			575,000
Mortgage payable	3,578			3,635
Security deposits	169,414			169,406
Accounts payable and other liabilities	102,322			134,705
Due to affiliates	11,806			4,617
Dividends payable	4,754			4,754
Total liabilities	2,967,361			2,892,873
Commitments and contingencies
Shareholders’ equity:
Preferred shares of beneficial interest; no par value;
100,000,000 shares authorized:
Series B preferred shares; 8 7/8% cumulative redeemable; 3,450,000 shares issued and outstanding, aggregate liquidation preference $86,250	83,306			83,306
Series C preferred shares; 7% cumulative redeemable; 12,700,000 shares issued and outstanding, aggregate liquidation preference $317,500	306,833			306,833
Common shares of beneficial interest, $0.01 par value; 150,000,000 shares authorized; 93,982,385 and 93,892,719 shares issued and outstanding, respectively	940			939
Additional paid-in capital	3,050,987			3,048,881
Accumulated other comprehensive loss	(40		)	—
Cumulative net income	1,790,140			1,711,079
Cumulative preferred distributions	(116,171		)	(93,761		)
Cumulative common distributions	(2,487,781		)	(2,270,843		)
Total shareholders’ equity	2,628,214			2,786,434
	$	5,595,575		$	5,679,307

10

Hospitality Properties Trust

Supplemental Operating and Financial Data

September 30, 2008

CONSOLIDATED STATEMENT OF INCOME

(in thousands, except per share data)

	For the Three Months Ended						For the Nine Months Ended
	9/30/2008			9/30/2007			9/30/2008			9/30/2007
Revenues:
Hotel operating revenues (1)	$	233,393		$	240,179		$	700,399		$	714,424
Minimum rent (1)(2)	72,824			87,669			250,341			222,819
FF&E reserve income (3)	6,095			5,785			18,620			16,993
Interest income	271			677			1,177			4,483
Total revenues	312,583			334,310			970,537			958,719
Expenses:
Hotel operating expenses	166,896			174,533			500,743			519,242
Interest (including amortization of deferred financing costs of $1,009, $956, $3,056 and $2,608, respectively)	36,529			38,038			110,626			102,488
Depreciation and amortization	60,449			57,647			178,277			160,470
General and administrative	7,881			10,848			28,920			27,801
TA spin off costs (4)	—			—			—			2,711
Reserve for straight line rent receivable (5)	—			—			19,613			—
Loss on asset impairment (6)	—			—			53,225			—
Total expenses	271,755			281,066			891,404			812,712
Income before gain on sale of real estate and income taxes	40,828			53,244			79,133			146,007
Gain on sale of real estate (7)	—			—			1,274			—
Income before income taxes	40,828			53,244			80,407			146,007
Income tax expense	(443		)	(422		)	(1,345		)	(1,644		)
Income from continuing operations	40,385			52,822			79,062			144,363
Discontinued operations (8):
Income from discontinued operations	—			1,327			—			7,440
Gain on sale of real estate used by discontinued operations	—			95,711			—			95,711
	—						—			103,151
Net income	40,385			149,860			79,062			247,514
Preferred distributions	(7,470		)	(7,470		)	(22,410		)	(19,299		)
Net income available for common shareholders	$	32,915		$	142,390		$	56,652		$	228,215
Weighted average common shares outstanding	93,954			93,872			93,930			92,845
Basic and diluted net income per common share:
Income from continuing operations available for common shareholders	$	0.35		$	0.48		$	0.60		$	1.35
Income from discontinued operations available for common shareholders	$	—		$	1.03		$	—		$	1.11
Net income available for common shareholders	$	0.35		$	1.52		$	0.60		$	2.46

See notes to consolidated statement of income on page 12.

11

Hospitality Properties Trust

Supplemental Operating and Financial Data

September 30, 2008

NOTES TO CONSOLIDATED STATEMENT OF INCOME

(in thousands, except per share data)

(1)	At September 30, 2008, each of our 290 hotels are included in one of eleven operating agreements of hotels of which 198 are leased to our taxable REIT subsidiaries and managed by independent hotel operating companies and 92 are leased to third parties. Our 185 travel centers are leased under two agreements. Our consolidated statement of income includes hotel operating revenues and expenses of managed hotels and rental income from our leased hotels and travel centers.
(2)	During the third quarter of 2008, TravelCenters of America LLC, or TA, elected to defer $15,000, or $0.16 per share, of rents in accordance with the previously announced rent deferral agreement. We have not recognized the deferred rent as revenue due to uncertainties regarding its payment by TA.
(3)	Various percentages of total sales at most of our hotels are escrowed as reserves for future renovations or refurbishment, or FF&E reserve escrows. At September 30, 2008, we own all the FF&E escrows for our hotels. Through July 26, 2007, we had a security and remainder interest in the FF&E reserve escrows for our former Homestead Studio Suites hotels (see Note 7). When we own the FF&E reserve escrows at hotels leased to third parties we report payments into the escrow as additional rent. When we had a security and remainder interest in the FF&E reserve escrows of our Homestead Studio Suites hotels, deposits were not included in revenue. We do not report the amounts which are escrowed as FF&E reserves for our managed hotels as FF&E reserve income in our consolidated statement of income.
(4)	During the first quarter of 2007, we expensed $2,711 of costs in connection with the spin off of our former subsidiary, TA, to our shareholders on January 31, 2007.
(5)	During the second quarter of 2008, we recorded a $19,613, or $0.21 per share, non-cash reserve for the straight line rent receivable relating to our TA No. 1 lease.
(6)	During the second quarter of 2008, we recorded a $53,225, or $0.57 per share, non-cash loss on asset impairment related to the write down of certain intangible assets arising from our January 2007 TA acquisition to their estimated fair value.
(7)	On February 5, 2008, we sold our Park Plaza hotel in North Phoenix, Arizona for $8,000 and recognized a gain on sale of $645. On June 18, 2008, we sold our AmeriSuites hotel in Pine Knoll Shores, North Carolina for $6,350 and recognized a gain on sale of $629.
(8)	Income from discontinued operations relates to the 18 Homestead Studio Suites hotels that we sold in July, 2007. We have reclassified our consolidated statement of income for all periods presented to show the results of operations of these hotels which have been sold as discontinued.

12

Hospitality Properties Trust

Supplemental Operating and Financial Data

September 30, 2008

CONSOLIDATED STATEMENT OF CASH FLOWS

(in thousands)

	For the Nine Months Ended
	9/30/2008			9/30/2007
Cash flows from operating activities:
Net income	$	79,062		$	247,514
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	178,277			162,106
Amortization of deferred financing costs as interest	3,056			2,608
Straight line rental income	(3,780		)	(11,494		)
Reserve for straight line rent receivable	19,613			—
Other non-cash (income) expense, net	(346		)	(2,230		)
FF&E reserve income and deposits	(49,343		)	(44,191		)
Loss on asset impairment	53,225			—
Gain on sale of real estate used by discontinued operations	—			(95,711		)
Gain on sale of real estate	(1,274		)	—
Change in assets and liabilities:
Decrease (increase) in other assets	2,005			(13,716		)
Decrease in accounts payable and other	(26,594		)	(3,473		)
Increase in due to affiliate	7,173			10,818
Cash provided by operating activities	261,074			252,231
Cash flows from investing activities:
Real estate acquisitions	(119,364		)	(2,584,451		)
FF&E reserve fundings	(29,120		)	(52,228		)
Increase (decrease) in security deposits	8			(15,960		)
Net proceeds from sale of real estate used by discontinued operations	—			205,350
Net proceeds from sale of real estate	13,684			—
Cash used in investing activities	(134,792		)	(2,447,289		)
Cash flows from financing activities:
Issuance of common shares, net	—			343,452
Issuance of preferred shares, net	—			306,833
Issuance of senior notes, net of discount	—			645,842
Issuance of convertible senior notes	—			575,000
Repayment of senior notes	(150,000		)	—
Draws on revolving credit facility	515,000			886,000
Repayments of revolving credit facility	(266,000		)	(749,000		)
Draws on interim credit facility	—			1,400,000
Repayments of interim credit facility	—			(1,400,000		)
Deferred financing costs incurred	(33		)	(17,305		)
Distributions to preferred shareholders	(22,410		)	(16,459		)
Distributions to common shareholders	(216,939		)	(207,863		)
Distribution of TA to common shareholders	—			(121,166		)
Cash (used in) provided by financing activities	(140,382		)	1,645,334
Decrease in cash and cash equivalents	(14,100		)	(549,724		)
Cash and cash equivalents at beginning of period	23,401			553,256
Cash and cash equivalents at end of period	$	9,301		$	3,532
Supplemental cash flow information:
Cash paid for interest	$	129,644		$	107,924
Non cash investing activities:
Property managers’ deposits in FF&E reserve	$	54,474		$	44,026
Property managers’ purchases with FF&E reserve	(74,243		)	(97,919		)
Non cash financing activities:
Issuance of common shares	$	2,107		$	1,801
Distribution of TA to common shareholders	—			(216,084		)

13

Hospitality Properties Trust

Supplemental Operating and Financial Data

September 30, 2008

CALCULATION OF EBITDA

(in thousands)

		For the Three Months Ended					For the Nine Months Ended
		9/30/2008		9/30/2007			9/30/2008			9/30/2007
Net income (1)(2)		$	40,385	$	149,860		$	79,062		$	247,514
Plus:	Interest expense	36,529		38,038			110,626			102,488
	Depreciation and amortization (continuing operations)	60,449		57,647			178,277			160,470
	Depreciation and amortization (discontinued operations) (3)	—		129			—			1,636
	Deferred percentage rent (continuing operations) (4)	1,283		1,651			4,385			4,748
	Deferred additional returns (continuing operations) (5)	5,111		7,723			16,888			20,516
	Income taxes (continuing operations)	443		422			1,345			1,644
	Loss on asset impairment (continuing operations) (6)	—		—			53,225			—
Less:	Gain on sale of real estate (continuing operations) (7)	—		—			(1,274		)	—
	Gain on sale of real estate (discontinued operations) (3)	—		(95,711		)	—			(95,711		)
	Deferred percentage rent (discontinued operations) (3) (4)	—		(257		)	—			—
EBITDA		$	144,200	$	159,502		$	442,534		$	443,305

(1)	Net income for the three months ended September 30, 2008 is reduced by a $15,000 rent deferral by TA.
(2)	Net income for the nine months ended September 30, 2008 includes a non-cash reserve of $19,613 for the straight line rent receivable relating to our TA No. 1 lease and a $15 million rent deferral by TA. We have not recognized the deferred rent as revenue due to uncertainties regarding its payment by TA.
(3)	On July 26, 2007, we sold our 18 Homestead Studio Suites® hotels. We reclassified our consolidated statement of income for all periods presented to show the results of operations of these hotels which have been sold as discontinued.
(4)	In calculating net income, we recognize percentage rental income received for the first, second and third quarters in the fourth quarter, which is when all contingencies are met and the income is earned. Although we defer recognition of this revenue until the fourth quarter for purposes of calculating net income, we include these amounts in the calculation of EBITDA for each quarter of the year. The fourth quarter EBITDA calculation excludes the amounts recognized during the first three quarters.
(5)	Our share of the operating results of our managed hotels in excess of the minimum returns due to us, or additional returns, is generally determined based upon annual calculations. We recognize additional returns in the fourth quarter, which is when all contingencies are met and the income is earned. Although we defer recognition of this income until the fourth quarter for purposes of calculating net income, we include these amounts in the calculation of EBITDA for each quarter of the year. The fourth quarter EBITDA calculation excludes the amounts recognized during the first three quarters.
(6)	During the second quarter of 2008, we recorded a $53,225 non-cash loss on asset impairment related to the write down of certain intangible assets arising from our TA acquisition to their estimated fair value.
(7)	On February 5, 2008, we sold our Park Plaza hotel in North Phoenix, Arizona for $8,000 and recognized a gain on sale of $645. On June 18, 2008, we sold our AmeriSuites hotel in Pine Knoll Shores, North Carolina for $6,350 and recognized a gain on sale of $629.

We compute EBITDA, or earnings before interest, taxes, depreciation and amortization, as net income plus interest expense, depreciation and amortization expense, income tax expense, deferred percentage rent, deferred additional returns and loss on asset impairment less gain on sale of real estate.  We consider EBITDA to be an appropriate measure of our performance, along with net income and cash flow from operating, investing and financing activities. We believe EBITDA provides useful information to investors because by excluding the effects of certain historical costs, such as interest and depreciation and amortization expense, EBITDA can facilitate a comparison of our current operating performance with our past operating performances and of operating performances among REITs. EBITDA does not represent cash generated by operating activities in accordance with  generally accepted accounting principles, or GAAP, and should not be considered an alternative to net income or cash flow from operating activities as a measure of financial performance or liquidity.

14

Hospitality Properties Trust

Supplemental Operating and Financial Data

September 30, 2008

CALCULATION OF FUNDS FROM OPERATIONS (FFO)

(in thousands, except per share data)

		For the Three Months Ended					For the Nine Months Ended
		9/30/2008		9/30/2007			9/30/2008			9/30/2007
Net income available for common shareholders (1)(2)		$	32,915	$	142,390		$	56,652		$	228,215
Plus:	FF&E deposits not in net income (3)	—		—			—			990
	Depreciation and amortization (continuing operations)	60,449		57,647			178,277			160,470
	Depreciation and amortization (discontinued operations) (4)	—		129			—			1,636
	Deferred percentage rent (continuing operations) (5)	1,283		1,651			4,385			4,748
	Deferred additional returns (continuing operations) (6)	5,111		7,723			16,888			20,516
	Loss on asset impairment (continuing operations) (7)	—		—			53,225			—
	TA spin off costs (continuing operations) (8)	—		—			—			2,711
Less:	Gain on sale of real estate (continuing operations) (9)	—		—			(1,274		)	—
	Gain on sale of real estate (discontinued operations) (4)	—		(95,711		)	—			(95,711		)
	Deferred percentage rent (discontinued operations) (4)(5)	—		(257		)	—			—
FFO available for common shareholders		$	99,758	$	113,572		$	308,153		$	323,575
Weighted average shares outstanding		93,954		93,872			93,930			92,845
Net income available for common shareholders per share		$	0.35	$	1.52		$	0.60		$	2.46
FFO available for common shareholders per share		$	1.06	$	1.21		$	3.28		$	3.49

(1)	Net income available for common shareholders for the three months ended September 30, 2008 is reduced by a $15,000 rent deferral by TravelCenters of America LLC, or TA.
(2)	Net income for the nine months ended September 30, 2008 includes a non-cash reserve of $19,613 for the straight line rent receivable relating to our TA No. 1 lease and a $15 million, or $0.16 per share, rent deferral by TA. We have not recognized the deferred rent as revenue due to uncertainties regarding its payment by TA.
(3)	Various percentages of total sales at most of our hotels are escrowed as reserves for future renovations or refurbishment, or FF&E Reserve escrows. At September 30, 2008, we own all the FF&E escrows for our hotels. Through July 26, 2007, we had a security and remainder interest in the FF&E Reserve escrows for our former Homestead Studio Suites hotels (see Note 3). When we own the FF&E Reserve escrows at hotels leased to third parties we report payments into the escrow as additional rent. When we had a security and remainder interest in the FF&E Reserve escrows of our Homestead Studio Suites hotels, deposits were not included in revenue. We do not report the amounts which are escrowed as FF&E reserves for our managed hotels as FF&E reserve income in our consolidated statement of income.
(4)	On July 26, 2007, we sold our 18 Homestead Studio Suites® hotels. We reclassified our consolidated statement of income for all periods presented to show the results of operations of these hotels which have been sold as discontinued.
(5)	In calculating net income, we recognize percentage rental income received for the first, second and third quarters in the fourth quarter, which is when all contingencies are met and the income is earned. Although we defer recognition of this revenue until the fourth quarter for purposes of calculating net income, we include these estimated amounts in the calculation of FFO for each quarter of the year. The fourth quarter FFO calculation excludes the amounts recognized during the first three quarters.
(6)	Our share of the operating results of our managed hotels in excess of the minimum returns due to us, or additional returns, is generally determined based upon annual calculations. We recognize additional returns in the fourth quarter, which is when all contingencies are met and the income is earned. Although we defer recognition of this income until the fourth quarter for purposes of calculating net income, we include these estimated amounts in the calculation of FFO for each quarter of the year. The fourth quarter FFO calculation excludes the amounts recognized during the first three quarters.
(7)	During the second quarter of 2008, we recorded a $53,225, or $0.57 per share, non-cash loss on asset impairment related to the write down of certain intangible assets arising from our TA acquisition to their estimated fair value.
(8)	During the first quarter of 2007, we expensed $2,711 of costs in connection with the spin off of our former subsidiary, TA, to our shareholders on January 31, 2007.
(9)	On February 5, 2008, we sold our Park Plaza hotel in North Phoenix, Arizona for $8,000 and recognized a gain on sale of $645. On June 18, 2008, we sold our AmeriSuites hotel in Pine Knoll Shores, North Carolina for $6,350 and recognized a gain on sale of $629.

We compute FFO as shown in the calculation above. Our calculation of FFO differs from the National Association of Real Estate Investment Trusts, or NAREIT, definition of FFO because we include FF&E deposits not included in net income (see Note 2), deferred percentage rent (see Note 4) and deferred additional returns (see Note 5) and  exclude loss on asset impairment (see note 6) and TA spin off costs (see Note 7).  We consider FFO to be an appropriate measure of performance for a real estate investment trust, or REIT, along with net income and cash flow from operating, investing and financing activities. We believe that FFO provides useful information to investors because by excluding the effects of certain historical costs, such as depreciation expense, FFO can facilitate comparison of current operating performance among REITs. FFO does not represent cash generated by operating activities in accordance with GAAP and should not be considered an alternative to net income or cash flow from operating activities as a measure of financial performance or liquidity. FFO is one important factor considered by our board of trustees in determining the amount of distributions to shareholders. Other important factors include, but are not limited to, requirements to maintain our status as a REIT, limitations in our revolving credit facility and public debt covenants, the availability of debt and equity capital to us and our expectation of our future capital needs and operating performance.

15

Hospitality Properties Trust

Supplemental Operating and Financial Data

September 30, 2008

SEGMENT INFORMATION

(in thousands)

	For the Three Months Ended September 30, 2008
	Hotels			Travel Centers		Corporate			Consolidated
Hotel operating revenues	$	233,393		$	—	$	—		$	233,393
Minimum rent	31,268			41,556		—			72,824
FF&E reserve income	6,095			—		—			6,095
Interest income	—			—		271			271
Total revenues	270,756			41,556		271			312,583
Hotel operating expenses	(166,896		)	—		—			(166,896		)
Operating income	103,860			41,556		271			145,687
Interest expense	—			—		36,529			36,529
Depreciation and amortization expense	39,022			21,427		—			60,449
General and administrative expense	—			—		7,881			7,881
Total expenses	39,022			21,427		44,410			104,859
Income (loss) before gain on sale of real estate and income taxes	64,838			20,129		(44,139		)	40,828
Gain on sale of real estate	—			—		—			—
Income (loss) before income taxes	64,838			20,129		(44,139		)	40,828
Income tax expense	—			—		(443		)	(443		)
Income (loss) from continuing operations	$	64,838		$	20,129	$	(44,582	)	$	40,385

	For the Nine Months Ended September 30, 2008
	Hotels			Travel Centers		Corporate			Consolidated
Hotel operating revenues	$	700,399		$	—	$	—		$	700,399
Minimum rent	93,269			157,072		—			250,341
FF&E reserve income	18,620			—		—			18,620
Interest income	—			—		1,177			1,177
Total revenues	812,288			157,072		1,177			970,537
Hotel operating expenses	(500,743		)	—		—			(500,743		)
Operating income	311,545			157,072		1,177			469,794
Interest expense	—			—		110,626			110,626
Depreciation and amortization expense	116,106			62,171		—			178,277
General and administrative expense	—			—		28,920			28,920
Reserve for straight line rent receivable	—			19,613		—			19,613
Loss on asset impairment	—			53,225		—			53,225
Total expenses	116,106			135,009		139,546			390,661
Income (loss) before gain on sale of real estate and income taxes	195,439			22,063		(138,369		)	79,133
Gain on sale of real estate	1,274			—		—			1,274
Income (loss) before income taxes	196,713			22,063		(138,369		)	80,407
Income tax expense	—			—		(1,345		)	(1,345		)
Income (loss) from continuing operations	$	196,713		$	22,063	$	(139,714	)	$	79,062
Total assets	$	3,197,854		$	2,364,703	$	33,018		$	5,595,575

16

Hospitality Properties Trust

Supplemental Operating and Financial Data

September 30, 2008

SEGMENT INFORMATION

(in thousands)

	For the Three Months Ended September 30, 2007
	Hotels			Travel Centers		Corporate			Consolidated
Hotel operating revenues	$	240,179		$	—	$	—		$	240,179
Minimum rent	29,408			58,261		—			87,669
FF&E reserve income	5,785			—		—			5,785
Interest income	—			—		677			677
Total revenues	275,372			58,261		677			334,310
Hotel operating expenses	(174,533		)	—		—			(174,533		)
Operating income	100,839			58,261		677			159,777
Interest expense	—			—		38,038			38,038
Depreciation and amortization expense	37,148			20,499		—			57,647
General and administrative expense	—			—		10,848			10,848
Total expenses	37,148			20,499		48,886			106,533
Income (loss) before income taxes	63,691			37,762		(48,209		)	53,244
Income tax expense	—			—		(422		)	(422		)
Income (loss) from continuing operations	$	63,691		$	37,762	$	(48,631	)	$	52,822

	For the Nine Months Ended September 30, 2007
	Hotels			Travel Centers		Corporate			Consolidated
Hotel operating revenues	$	714,424		$	—	$	—		$	714,424
Minimum rent	87,893			134,926		—			222,819
FF&E reserve income	16,993			—		—			16,993
Interest income	—			—		4,483			4,483
Total revenues	819,310			134,926		4,483			958,719
Hotel operating expenses	(519,242		)	—		—			(519,242		)
Operating income	300,068			134,926		4,483			439,477
Interest expense	—			—		102,488			102,488
Depreciation and amortization expense	109,513			50,957		—			160,470
General and administrative expense	—			—		27,801			27,801
TA spin off costs	—			—		2,711			2,711
Total expenses	109,513			50,957		133,000			293,470
Income (loss) before income taxes	190,555			83,969		(128,517		)	146,007
Income tax expense	—			—		(1,644		)	(1,644		)
Income (loss) from continuing operations	$	190,555		$	83,969	$	(130,161	)	$	144,363
Total assets	$	3,260,646		$	2,356,025	$	30,484		$	5,647,155

17

Hospitality Properties Trust

Supplemental Operating and Financial Data

September 30, 2008

DEBT SUMMARY

(dollars in thousands)

	Interest		Principal		Maturity		Years to
	Rate		Balance		Date		Maturity
Secured Fixed Rate Debt:
Mortgage - secured by one hotel in Overland Park, KS	8.300	%	$	3,578	07/01/11		2.8
Unsecured Debt:
Unsecured Floating Rate Debt:
Revolving credit facility (LIBOR + 55 bps)	4.260	%(1)	$	407,000	10/24/10	(2)	2.1
Unsecured Fixed Rate Debt:
Senior notes due 2010	9.125	%	$	50,000	07/15/10		1.8
Senior notes due 2012	6.850	%	125,000		07/15/12		3.8
Senior notes due 2013	6.750	%	300,000		02/15/13		4.4
Senior notes due 2015	5.125	%	300,000		02/15/15		6.4
Senior notes due 2016	6.300	%	275,000		06/15/16		7.7
Senior notes due 2017	5.625	%	300,000		03/15/17		8.5
Senior notes due 2018	6.700	%	350,000		01/15/18		9.3
Convertible senior notes due 2027	3.800	%	575,000		03/15/27	(3)	18.5
Total / weighted average unsecured fixed rate debt	5.637	%	$	2,275,000			9.8
Weighted average secured fixed rate debt / total	8.300	%	$	3,578			2.8
Weighted average unsecured floating rate debt / total	4.260	%	407,000				2.1
Weighted average unsecured fixed rate debt / total	5.637	%	2,275,000				9.8
Weighted average debt / total	5.432	%	$	2,685,578			8.6

(1)Interest rate at September 30, 2008.

(2)The credit facility may be extended at our option to October 24, 2011 upon payment of an extension fee.

(3)The convertible senior notes are convertible if certain conditions are met (including certain changes in control) into cash equal to the principal amount of the notes and, to the extent the market price of our common shares exceeds the initial exchange price of $50.50 per share, subject to adjustment, either cash or our common shares at our option with a value based on such excess amount. Holders of our convertible senior notes may require us to repurchase all or a portion of the notes on March 20, 2012, March 15, 2017, and March 15, 2022, or upon the occurrence of certain change in control events.

18

Hospitality Properties Trust

Supplemental Operating and Financial Data

September 30, 2008

DEBT MATURITY SCHEDULE

(dollars in thousands)

	Scheduled Principal Payments During Period
	Secured		Unsecured			Unsecured
	Fixed Rate		Floating			Fixed
Year	Debt		Rate Debt			Rate Debt			Total
2008	$	20	$	—		$	—		$	20
2009	84		—			—			84
2010	91		407,000		(1)	50,000			457,091
2011	3,383		—			—			3,383
2012	—		—			125,000			125,000
2013	—		—			300,000			300,000
2014	—		—			—			—
2015	—		—			300,000			300,000
2016	—		—			275,000			275,000
2017	—		—			300,000			300,000
2018	—		—			350,000			350,000
2027	—		—			575,000		(2)	575,000
	$	3,578	$	407,000		$	2,275,000		$	2,685,578

(1)The credit facility may be extended at our option to October 24, 2011 upon payment of an extension fee.

(2)The convertible senior notes are convertible if certain conditions are met (including certain changes in control) into cash equal to the principal amount of the notes and, to the extent the market price of our common shares exceeds the initial exchange price of $50.50 per share, subject to adjustment, either cash or our common shares at our option with a value based on such excess amount.  Holders of our convertible senior notes may require us to repurchase all or a portion of the notes on March 20, 2012, March 15, 2017, and March 15, 2022, or upon the occurrence of certain change in control events.

19

Hospitality Properties Trust

Supplemental Operating and Financial Data

September 30, 2008

LEVERAGE RATIOS, COVERAGE RATIOS AND PUBLIC DEBT COVENANTS

	As of and For the Three Months Ended
	9/30/2008	6/30/2008	3/31/2008	12/31/2007	9/30/2007
Leverage Ratios:
Total debt / total assets	47.9%	47.4%	46.7%	45.4%	45.3%
Total debt / real estate assets, at cost	42.1%	42.1%	42.6%	41.6%	41.6%
Total debt / total book capitalization	50.5%	50.1%	49.1%	48.1%	47.9%
Total debt / total market capitalization	55.6%	50.8%	43.1%	43.6%	38.0%
Secured debt / total assets	0.1%	0.1%	0.1%	0.1%	0.1%
Variable rate debt / total debt	15.2%	14.8%	6.1%	5.4%	24.1%
Coverage Ratios:
EBITDA (1) / interest expense	3.9x	3.9x	4.2x	4.1x	4.2x
EBITDA (1) / interest expense and preferred distributions	3.3x	3.2x	3.5x	3.4x	3.5x
Public Debt Covenants: (2)
Total debt / adjusted total assets - allowable maximum 60.0%	41.6%	41.2%	41.9%	41.2%	41.2%
Secured debt / adjusted total assets - allowable maximum 40.0%	0.1%	0.1%	0.1%	0.1%	0.1%
Consolidated income available for debt service / debt service - required minimum 1.50x	3.68x	3.17x	3.69x	4.47x	3.63x
Total unencumbered assets to unsecured debt - required minimum 150% / 200%	240.3%	240.3%	238.7%	220.1%	218.6%

(1)See page 14 for our calculation of EBITDA.

(2)Adjusted total assets and unencumbered assets include original cost of real estate assets less impairment write downs and exclude depreciation and amortization, accounts receivable and intangible assets.  Consolidated income available for debt service is earnings from operations excluding interest expense, depreciation and amortization, loss on asset impairment, gains and losses on sales of property and amortization of deferred charges.

20

Hospitality Properties Trust

Supplemental Operating and Financial Data

September 30, 2008

FF&E RESERVE ESCROWS (1)

(dollars in thousands)

	As of and For the Three Months Ended
	9/30/2008			6/30/2008			3/31/2008			12/31/2007			9/30/2007
HPT Owned:
FF&E reserves (beginning of period)	$	37,003		$	45,469		$	28,134		$	25,698		$	30,684
Manager deposits	18,732			16,246			19,496			14,642			17,287
HPT fundings:
Carlson (2)	—			125			172			197			136
Marriott (3)	829			5,431			9,772			3,016			1,532
Hyatt (4)	1,000			1,500			600			7,500			7,500
InterContinental (5)	—			—			9,691			1,300			—
Hotel improvements	(20,079		)	(31,768		)	(22,396		)	(24,219		)	(31,441		)
FF&E reserves (end of period)	$	37,485		$	37,003		$	45,469		$	28,134		$	25,698
Tenant Owned:
FF&E reserves (beginning of period)	$	—		$	—		$	—		$	—		$	1
Manager deposits	—			—			—			—			—
HPT fundings
Hotel improvements	—			—			—			—			(1		)
FF&E reserves (end of period)	$	—		$	—		$	—		$	—		$	1
Total:
FF&E reserves (beginning of period)	$	37,003		$	45,469		$	28,134		$	25,698		$	30,685
Manager deposits	18,732			16,246			19,496			14,642			17,287
HPT fundings:
Carlson (2)	—			125			172			197			136
Marriott (3)	829			5,431			9,772			3,016			1,532
Hyatt (4)	1,000			1,500			600			7,500			7,500
InterContinental (5)	—			—			9,691			1,300			—
Hotel improvements	(20,079		)	(31,768		)	(22,396		)	(24,219		)	(31,442		)
FF&E reserves (end of period)	$	37,485		$	37,003		$	45,469		$	28,134		$	25,698

(1)Generally, each of our hotel operating agreements require the deposit of a percentage of gross hotel revenues into escrows to fund periodic hotel renovations, or FF&E reserves.  For recently built or renovated hotels, this requirement may be deferred for a period.  At September 30, 2008, we own all the FF&E reserve escrows for all our hotels.  Through July 26, 2007, we had a security and remainder interest in the escrow account of our former Homestead Studio Suites® hotels.

(2)Pursuant to our agreement with Carlson for the management of 11 hotels, we agreed to fund certain rebranding costs and other capital improvements.  To the extent our fundings exceed $12,000, the minimum return payable by Carlson to us increases as these funds are advanced.  At September 30, 2008, we have funded $37,411 under this agreement.

(3)Represents FF&E reserve deposits for our Marriott branded hotels not funded by hotel operations but separately funded by us.  The operating agreements for our Marriott branded 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 annual minimum returns or rent increases by a percentage of the amounts we fund.

(4)Pursuant to our agreement with Hyatt for the management of 23 hotels, we agreed to fund certain rebranding costs and other capital improvements.  To the extent our funding exceeds $8,000, the minimum return payable by Hyatt to us increases as these funds are advanced.  At September 30, 2008, we have funded $74,600 under this agreement.

(5)Pursuant to our management agreements with InterContinental, we agreed to fund certain rebranding costs and capital improvements.  Generally, our annual minimum returns increase by a percentage of the amounts we fund.

21

Hospitality Properties Trust

Supplemental Operating and Financial Data

September 30, 2008

2008 ACQUISITIONS AND DISPOSITIONS INFORMATION

(dollars in thousands)

2008 ACQUISITIONS (through 9/30/2008):

				Number			Purchase
Date				of Rooms	Operating	Purchase	Price per
Acquired	Properties	Brand	Location	/ Suites	Agreement	Price	Room / Suite

There were no hotel acquisitions during the nine months ended September 30, 2008.

On March 17, 2008 we acquired land and improvements at our Petro travel center in Sparks, Nevada for $42,500.  This acquisition includes 42 acres of land, a 45,000 sq. ft. travel center, including a restaurant, convenience store, and casino plus an adjacent office building and hotel (71 keys).

2008 DISPOSITIONS (through 9/30/08):

				Number				Sales
Date				of Rooms	Operating	Sales		Price per
Disposed	Properties	Brand	Location	/ Suites	Agreement	Price		Room / Suite
2/5/08	1	Park Plaza	North Phoenix, AZ	166	Carlson	$	8,000	$	48
6/18/08	1	AmeriSuites	Pine Knoll Shores, NC	111	Hyatt	6,350		57
Total 2008	2			277		$	14,350	$	52

22

Hospitality Properties Trust

Supplemental Operating and Financial Data

September 30, 2008

2008 FINANCING ACTIVITIES

(share amounts and dollars in thousands)

	For the Three Months Ended
	9/30/2008		6/30/2008		3/31/2008
Debt Transactions: (1)
New debt raised	$	—	$	—	$	—
Total new debt	—		—		—
Debt retired	—		—		(150,000		)
Net debt	$	—	$	—	$	(150,000	)
Equity Transactions:
New common shares issued	—		—		—
New common equity raised, net	$	—	$	—	$	—
New preferred shares issued	—		—		—
New preferred equity raised, net	$	—	$	—	$	—
Total new equity	$	—	$	—	$	—

(1)Excludes drawings and repayments under our revolving credit facility.

23

OPERATING AGREEMENTS

AND PORTFOLIO INFORMATION

Hospitality Properties Trust

Supplemental Operating and Financial Data

September 30, 2008

SUMMARY OF OPERATING AGREEMENTS

(dollars in thousands)

Operating Agreement	Marriott (no. 1)	Marriott (no. 2)	Marriott (no. 3) (1)	Marriott (no. 4)	Marriott (no. 5) (1)	InterContinental (no. 1)	InterContinental (no. 2)	InterContinental (no. 3)	InterContinental (no. 4)	Hyatt	Carlson	TA (no. 1)	TA (no. 2)	Total / Range / Average (all investments)
Number of Properties	53	18	34	19	1	31	76	14	10	23	11	145	40	475
Number of Rooms / Suites	7,610	2,178	5,019	2,756	356	3,844	9,220	4,139	2,937	2,784	2,096	(2)	—	42,939 (2)
Property Brands	Courtyard by Marriott®	Residence Inn by Marriott®	Marriott® / Residence Inn by Marriott® / Courtyard by Marriott® / TownePlace Suites by Marriott® / SpringHill Suites by Marriott®	Residence Inn by Marriott® / Courtyard by Marriott® / TownePlace Suites by Marriott® / SpringHill Suites by Marriott®	Marriott®	Staybridge Suites®	Candlewood Suites®	InterContinental® / Crowne Plaza® / Holiday Inn® / Staybridge Suites®	Crowne Plaza® / Staybridge Suites®	AmeriSuites® / Hyatt PlaceTM	Radisson Hotels & Resorts® / Park Plaza® Hotels & Resorts / Country Inn & Suites by CarlsonSM	TravelCenters of America®	Petro Stopping Centers®	17 Brands
Number of States	24	14	14	14	1	16	29	7 plus Ontario and Puerto Rico	5	14	7	39	25	44 plus Ontario and Puerto Rico
Manager	Subsidiary of Marriott International	Subsidiary of Marriott International	Subsidiaries of Marriott International	Subsidiaries of Marriott International	Subsidiary of Marriott International	Subsidiary of InterContinental	Subsidiary of InterContinental	Subsidiaries of InterContinental	Subsidiaries of InterContinental	Subsidiary of Hyatt	Subsidiary of Carlson	TA	TA	5 Managers
Tenant	Subsidiary of Host Hotels & Resorts Subleased to Subsidiary of Barcelo Crestline	Subsidiary of Host Hotels & Resorts Subleased to Subsidiary of Barcelo Crestline	Our TRS	Subsidiary of Barcelo Crestline	Subsidiary of Marriott International	Our TRS	Our TRS	Our TRS and a subsidiary of InterContinental	Our TRS	Our TRS	Our TRS	Subsidiary of TA	Subsidiary of TA	5 Tenants
Investment at September 30, 2008 (3)	$586,683	$207,581	$425,375	$274,222	$47,035	$436,708	$589,405	$512,303	$240,340	$303,844	$202,251	$1,824,793	$705,507	$6,356,047
End of Current Term	2012	2010	2019	2015	2019	2031	2028	2029	2030	2030	2030	2022	2024	2010-2031
Renewal Options (4)	3 for 12 years each	1 for 10 years, 2 for 15 years each	2 for 15 years each	2 for 10 years each	4 for 15 years each	2 for 12.5 years each	2 for 15 years each	2 for 15 years each	2 for 15 years each	2 for 15 years each	2 for 15 years each	N/A	2 for 15 years each
Annual Minimum Return / Minimum Rent	$58,636	$20,740	$43,974	$28,508	$5,522	$37,882	$50,000	$44,258	$21,130	$21,937	$12,920	$159,901 (5)(6)	$66,177 (5)	$571,585
Additional Return (7)	—	—	$711	—	—	—	$10,000	$3,458	$1,750	50% of cash flow in excess of minimum return (8)	50% of cash flow in excess of minimum return (8)	—	—	$15,919
Percentage Return / Rent (9)	5% of revenues above 1994/95 revenues	7.5% of revenues above 1996 revenues	7% of revenues above 2000/01 revenues	7.0% of revenues above 1999/2000 revenues	CPI based calculation	7.5% of revenues above 2004/06/08 revenues	7.5% of revenues above 2006/07 revenues	7.5% of revenues above 2006/07 revenues	7.5% of revenues above 2007 revenues	—	—	3% of non-fuel revenues and .3% of fuel revenues above 2011 revenues	3% of non-fuel revenues and .3% of fuel revenues above 2012 revenues
Security Deposit	$50,540	$17,220	$36,204	$28,508	—	$36,872 (10)	—	$36,872 (10)	$36,872 (10)	—	—	—	—	$169,344
Other Security Features	HPT controlled lockbox with minimum balance maintenance requirement; subtenant and subtenant parent minimum net worth requirement	HPT controlled lockbox with minimum balance maintenance requirement; subtenant and subtenant parent minimum net worth requirement		Tenant minimum net worth requirement	Marriott guarantee	Limited guarantee provided by InterContinental	Limited guarantee provided by InterContinental	Limited guarantee provided by InterContinental	Limited guarantee provided by InterContinental	Limited guarantee provided by Hyatt	Limited guarantee provided by Carlson	TA guarantee	TA guarantee

(1)Effective January 1, 2008, we entered into a new lease for our Marriott Kauai Resort Beach Club with a subsidiary of Marriott International, Inc.  This hotel was previously included in Marriott agreement no. 3 and leased to one of our taxable REIT subsidiaries.

(2)18  of our TA properties include hotels.  The rooms associated with these hotels have been excluded from total hotel rooms.

(3)Excludes expenditures made from FF&E reserves funded from hotel operations, but includes amounts separately funded by us.

(4)Renewal options may be exercised by the manager or tenant for all, but not less than all, of the properties within each combination.

(5)Effective July 1, 2008, we entered a rent deferral arrangement with TA which provides TA the option to defer payments of up to $5 million per month of rent under the two leases for the period July 1, 2008 until December 31, 2010.  For the quarter ended September, 30, 2008, TA deferred $15 million in rents.  TA rents presented in this report represent their contractual obligation and do not reflect any rent deferral.

(6)The amount of minimum rent payable to us by TA is scheduled to increase to $163,978, $168,055, $173,135 and $178,216 in 2009, 2010, 2011 and 2012, respectively.

(7)These management agreements provide for annual additional return payments in the amount listed, to the extent of available cash flow after payment of operating costs, funding of the FF&E reserve, payment of our minimum return and payment of certain management fees.

(8)These management agreements provide for payment to us of 50% of available cash flow after payment of operating costs, funding the FF&E reserve, payment of our minimum return and reimbursement to the managers of working capital and guaranty advances, if any.

(9)Each management contract or lease provides for payment to us of a percentage of increases in total property sales over a base year level as additional return or rent.

(10)A single $36,872 deposit secures InterContinental’s obligations under the InterContinental No. 1, No. 3 and No. 4 portfolios.

25

Hospitality Properties Trust

Supplemental Operating and Financial Data

September 30, 2008

PORTFOLIO BY OPERATING AGREEMENT, MANAGER AND BRAND

(dollars in thousands)

		Percent of		Percent of						Annual		Percent of
	Number of	Number of	Number of	Number of			Percent of	Investment per		Minimum		Minimum
	Properties	Properties	Rooms / Suites (1)	Rooms / Suites (1)	Investment (2)		Investment	Room / Suite		Return / Rent		Return / Rent
By Operating Agreement:
InterContinental (no. 1)	31	7%	3,844	9%	$	436,708	7%	$	114	$	37,882	7%
InterContinental (no. 2)	76	16%	9,220	21%	589,405		9%	64		50,000		9%
InterContinental (no. 3)	14	3%	4,139	10%	512,303		8%	124		44,258		8%
InterContinental (no. 4)	10	2%	2,937	7%	240,340		4%	82		21,130		4%
Marriott (no. 1)	53	11%	7,610	18%	586,683		9%	77		58,636		10%
Marriott (no. 2)	18	4%	2,178	5%	207,581		3%	95		20,739		3%
Marriott (no. 3)	34	7%	5,019	12%	425,375		7%	85		43,974		8%
Marriott (no. 4)	19	4%	2,756	6%	274,222		4%	100		28,509		5%
Marriott (no. 5)	1	—	356	1%	47,035		1%	132		5,522		1%
Hyatt	23	5%	2,784	6%	303,844		5%	109		21,937		4%
Carlson	11	2%	2,096	5%	202,251		3%	96		12,920		2%
TA (no. 1) (3)(4)	145	31%	N/A	N/A	1,824,793		29%	N/A		159,901		28%
TA (no. 2) (3)	40	8%	N/A	N/A	705,507		11%	N/A		66,177		11%
Total	475	100%	42,939	100%	$	6,356,047	100%	$	89	$	571,585	100%
By Manager:
InterContinental	131	28%	20,140	47%	$	1,778,756	28%	$	88	$	153,270	27%
Marriott International	125	27%	17,919	42%	1,540,896		24%	86		157,380		27%
Hyatt	23	5%	2,784	6%	303,844		5%	109		21,937		4%
Carlson	11	2%	2,096	5%	202,251		3%	96		12,920		2%
TA (3)(4)	185	38%	N/A	N/A	2,530,300		40%	N/A		226,078		40%
Total	475	100%	42,939	100%	$	6,356,047	100%	$	89	$	571,585	100%
By Brand:
AmeriSuites® / Hyatt PlaceTM	23	5%	2,784	7%	$	303,844	5%	$	109
Candlewood Suites®	76	16%	9,220	21%	589,387		9%	64
Country Inn & Suites by CarlsonSM	5	1%	753	2%	74,827		1%	99
Courtyard by Marriott®	71	15%	10,280	24%	846,533		13%	82
Crowne Plaza®	12	3%	4,406	10%	367,655		6%	83
Holiday Inn®	3	1%	697	2%	35,526		1%	51
InterContinental®	5	1%	1,479	3%	309,879		5%	210
Marriott Hotels®	3	1%	1,349	3%	117,254		2%	87
Park Plaza® Hotels & Resorts	1	0%	368	1%	11,533		0%	31
Radisson Hotels & Resorts®	5	1%	975	2%	115,890		2%	119
Residence Inn by Marriott®	37	8%	4,695	11%	452,570		7%	96
SpringHill Suites by Marriott®	2	0%	264	1%	20,833		0%	79
Staybridge Suites®	35	7%	4,338	10%	476,309		7%	110
TownePlace Suites by Marriott®	12	3%	1,331	3%	103,707		2%	78
TravelCenters of America®	145	30%	N/A	N/A	1,824,793		29%	N/A
Petro Stopping Centers®	40	8%	N/A	N/A	705,507		11%	N/A
Total	475	100%	42,939	100%	$	6,356,047	100%	$	89

(1)18 of our TA properties include a hotel.  The rooms associated with these hotels have been excluded from total hotel rooms.

(2)Excludes expenditures made from FF&E reserves funded from hotel operations, but includes amounts separately funded by us.

(3)Effective July 1, 2008, we entered a rent deferral arrangement with TA which provides TA the option to defer payments of up to $5 million per month of rent under the two leases for the period July 1, 2008 until December 31, 2010.  For the quarter ended September 30, 2008, TA deferred $15 million in rents.  TA rents presented in this report represent their contractural obligation and do not reflect any rent deferral.

(4)The amount of annual minimum rent payable to us by TA is scheduled to increase to $163,978, $168,055, $173,135 and $178,216 in 2009, 2010, 2011 and 2012, respectively.

26

Hospitality Properties Trust

Supplemental Operating and Financial Data

September 30, 2008

OPERATING STATISTICS BY HOTEL OPERATING AGREEMENT

		No. of
	No. of	Rooms /	Third Quarter(1)					Year to Date (1)
	Hotels	Suites	2008		2007		Change	2008		2007		Change
ADR
InterContinental (no. 1)	31	3,844	$	114.60	$	111.84	2.5%	$	114.88	$	110.97	3.5%
InterContinental (no. 2)	76	9,220	71.31		68.76		3.7%	71.98		69.75		3.2%
InterContinental (no. 3)	14	4,139	140.16		141.62		-1.0%	145.49		142.46		2.1%
InterContinental (no. 4)	10	2,937	106.90		105.43		1.4%	110.82		109.24		1.4%
Marriott (no. 1)	53	7,610	119.91		120.25		-0.3%	124.51		124.39		0.1%
Marriott (no. 2)	18	2,178	120.38		119.17		1.0%	121.13		119.02		1.8%
Marriott (no. 3) (2)	34	5,019	109.46		108.99		0.4%	110.75		108.90		1.7%
Marriott (no. 4)	19	2,756	111.49		108.98		2.3%	120.00		116.67		2.9%
Marriott (no. 5) (2)	1	356	230.85		230.06		0.3%	230.30		221.16		4.1%
Hyatt	23	2,784	100.66		94.04		7.0%	103.54		95.75		8.1%
Carlson	11	2,096	102.89		99.31		3.6%	105.23		100.82		4.4%
Total/Average	290	42,939	$	106.99	$	105.42	1.5%	$	109.76	$	107.19	2.4%
OCCUPANCY
InterContinental (no. 1)	31	3,844	78.7%		78.8%		-0.1pt	76.1%		76.2%		-0.1pt
InterContinental (no. 2)	76	9,220	76.2%		78.7%		-2.5pt	74.0%		76.1%		-2.1pt
InterContinental (no. 3)	14	4,139	77.7%		79.1%		-1.4pt	77.2%		78.7%		-1.5pt
InterContinental (no. 4)	10	2,937	71.7%		67.8%		3.9pt	71.4%		70.6%		0.8pt
Marriott (no. 1)	53	7,610	72.2%		74.5%		-2.3pt	68.6%		69.5%		-0.9pt
Marriott (no. 2)	18	2,178	80.2%		79.2%		1.0pt	74.0%		76.8%		-2.8pt
Marriott (no. 3) (2)	34	5,019	77.2%		79.4%		-2.2pt	73.8%		76.1%		-2.3pt
Marriott (no. 4)	19	2,756	70.6%		73.6%		-3.0pt	72.0%		73.0%		-1.0pt
Marriott (no. 5) (2)	1	356	82.3%		86.8%		-4.5pt	81.9%		86.2%		-4.3pt
Hyatt	23	2,784	69.7%		60.3%		9.4pt	69.4%		58.3%		11.1pt
Carlson	11	2,096	67.9%		73.6%		-5.7pt	67.8%		70.6%		-2.8pt
Total/Average	290	42,939	74.7%		75.6%		-0.9pt	72.7%		73.3%		-0.6pt
RevPAR
InterContinental (no. 1)	31	3,844	$	90.19	$	88.13	2.3%	$	87.42	$	84.56	3.4%
InterContinental (no. 2)	76	9,220	54.34		54.11		0.4%	53.27		53.08		0.4%
InterContinental (no. 3)	14	4,139	108.90		112.02		-2.8%	112.32		112.12		0.2%
InterContinental (no. 4)	10	2,937	76.65		71.48		7.2%	79.13		77.12		2.6%
Marriott (no. 1)	53	7,610	86.58		89.59		-3.4%	85.41		86.45		-1.2%
Marriott (no. 2)	18	2,178	96.54		94.38		2.3%	89.64		91.41		-1.9%
Marriott (no. 3) (2)	34	5,019	84.50		86.54		-2.4%	81.73		82.87		-1.4%
Marriott (no. 4)	19	2,756	78.71		80.21		-1.9%	86.40		85.17		1.4%
Marriott (no. 5) (2)	1	356	189.99		199.69		-4.9%	188.62		190.64		-1.1%
Hyatt	23	2,784	70.16		56.17		23.7%	71.86		55.82		28.7%
Carlson	11	2,096	69.86		73.09		-4.4%	71.35		71.18		0.2%
Total/Average	290	42,939	$	79.92	$	79.70	0.3%	$	79.80	$	78.57	1.6%

(1)Includes data for the calendar periods indicated, except for our Marriott® branded hotels, which include data for comparable fiscal periods.

(2)Effective January 1, 2008 we entered into a new lease for our Marriott Kauai Resort Beach Club hotel with a subsidiary of Marriott International, Inc.  This hotel was previously included in Marriott agreement no. 3 and leased to one of our taxable REIT subsidiaries. Prior periods have been adjusted to remove of the Kauai property from Marriott (no. 3) and report its results in Marriott (no. 5).

“ADR” is average daily rate; “RevPAR” is revenue per available room.  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’ and tenants’ operating data.

27

Hospitality Properties Trust

Supplemental Operating and Financial Data

September 30, 2008

COVERAGE BY OPERATING AGREEMENT (1)

	For the Twelve Months Ended (2)
Operating Agreement	9/30/2008	6/30/2008	3/31/2008	12/31/2007	9/30/2007
InterContinental (no. 1)	1.15x	1.14x	1.12x	1.09x	1.08x
InterContinental (no. 2)	1.42x	1.42x	1.42x	1.43x	1.42x
InterContinental (no. 3)	1.32x	1.36x	1.37x	1.33x	1.31x
InterContinental (no. 4)	1.15x	1.18x	1.30x	1.39x	1.41x
Marriott (no. 1)	1.56x	1.60x	1.62x	1.63x	1.58x
Marriott (no. 2)	1.21x	1.20x	1.25x	1.33x	1.32x
Marriott (no. 3) (3)	1.24x	1.26x	1.26x	1.29x	1.27x
Marriott (no. 4)	1.21x	1.22x	1.23x	1.22x	1.18x
Marriott (no. 5) (3)	0.48x	0.61x	0.76x	0.80x	0.80x
Hyatt	0.99x	0.85x	0.69x	0.53x	0.49x
Carlson	1.51x	1.61x	1.66x	1.70x	1.64x
TA (no. 1) (4)(5)	1.24x	1.17x	1.19x	1.26x	1.39x
TA (no. 2) (4) (5) (6)	1.33x	1.14x	1.07x	1.09x	1.15x

	For the Three Months Ended (2)
Operating Agreement	9/30/2008	6/30/2008	3/31/2008	12/31/2007	9/30/2007
InterContinental (no. 1)	1.28x	1.29x	1.09x	0.93x	1.25x
InterContinental (no. 2)	1.56x	1.55x	1.32x	1.25x	1.57x
InterContinental (no. 3)	1.18x	1.59x	1.29x	1.22x	1.35x
InterContinental (no. 4)	0.95x	1.18x	1.22x	1.25x	1.08x
Marriott (no. 1)	1.58x	1.74x	1.40x	1.55x	1.71x
Marriott (no. 2)	1.36x	1.25x	0.87x	1.34x	1.30x
Marriott (no. 3) (3)	1.30x	1.47x	1.01x	1.19x	1.39x
Marriott (no. 4)	0.95x	1.29x	1.37x	1.21x	1.00x
Marriott (no. 5) (3)	0.44x	0.36x	0.68x	0.44x	1.00x
Hyatt	1.10x	1.19x	1.08x	0.58x	0.55x
Carlson	1.40x	1.51x	1.66x	1.47x	1.78x
TA (no. 1) (4)(5)	1.80x	1.43x	0.88x	0.85x	1.54x
TA (no. 2) (4) (5) (6)	1.92x	1.51x	0.94x	0.93x	1.18x

(1)We define coverage as combined total property sales minus all property level expenses which are not subordinated to minimum payments to us and the required FF&E reserve contributions (which data is provided to us by our managers or tenants), divided by the minimum return or minimum rent payments due to us.  For some combinations, amounts have been calculated using data for periods prior to our ownership of certain properties and prior to commencement of our operating agreements.

(2)Includes data for the calendar periods indicated, except for our Marriott® branded hotels, which include data for comparable fiscal periods.

(3)Effective January 1, 2008, we entered into a new lease for our Marriott Kauai Resort Beach Club hotel with a subsidiary of Marriott International, Inc., and Marriott International, Inc. has guaranteed the rent due to us under this lease.  This hotel was previously included in Marriott agreement no. 3 and leased to one of our taxable REIT subsidiaries.  Coverage ratios have calculated assuming the current operating agreements were in place for all periods presented.  As part of the new guaranteed lease agreement for this hotel, we have agreed to provide funding for major capital projects at this hotel; as these improvements are funded our guaranteed rents will increase.

(4)Includes data for periods prior to our ownership of some properties.

(5)Effective July 1, 2008, we entered a rent deferral arrangement with TA which provides TA the option to defer payments of up to $5 million per month of rent under the two leases for the period July 1, 2008 until December 31, 2010.  For the quarter ended September, 30, 2008, TA deferred $15 million in rents.  TA rent coverage ratios have been calculated based upon the contractual rent amounts and do not reflect the impact of any rent deferral.

(6)Includes data for periods some properties were not operated by the current operator.

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.

28

Hospitality Properties Trust

Supplemental Operating and Financial Data

September 30, 2008

OPERATING AGREEMENT EXPIRATION SCHEDULE

(dollars in thousands)

	Annualized Minimum Return / Rent		% of Annualized Minimum Return / Rent	Cumulative % of Annualized Minimum Return / Rent
2008	$	—	—	—
2009	—		—	—
2010	20,739		3.6%	3.6%
2011	—		—	—
2012	58,636		10.3%	13.9%
2013	—		—	13.9%
2014	—		—	13.9%
2015	28,509		5.0%	18.9%
2016	—		—	18.9%
2017	—		—	18.9%
2018 and thereafter	463,701		81.1%	100.0%
Total	$	571,585	100.0%
Weighted average remaining term	14.8 years

29