DIAMONDROCK HOSPITALITY COMPANY REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS

Comparable Total RevPAR Growth, Adjusted EBITDA, and Adjusted FFO Per Share Exceed High End of Guidance

DiamondRock Hospitality Company (Nasdaq: DRH, the “Company”), a lodging real estate investment trust that owns a portfolio of 35 premium hotels and resorts in the United States, today announced results of operations for the quarter and year ended December 31, 2025.

FOURTH QUARTER 2025 HIGHLIGHTS


Net Income: Net income attributable to common stockholders was $23.8 million, or $0.12 per diluted share, an increase of 273.7% compared to the fourth quarter of 2024.


Adjusted EBITDA: $71.9 million, an increase of 3.3% compared to the fourth quarter of 2024.


Adjusted FFO per Diluted Share: $0.27, an increase of 12.5% compared to the fourth quarter of 2024.


Comparable RevPAR: $201.83, a decrease of 0.3% compared to the fourth quarter of 2024.


Comparable Total RevPAR: $311.00, an increase of 0.6% compared to the fourth quarter of 2024, driven by a 2.3% increase in out-of-room revenues.


Comparable Hotel Adjusted EBITDA: $76.6 million, an increase of 3.7% compared to the fourth quarter of 2024.


Comparable Hotel Adjusted EBITDA Margin: 27.92%, an increase of 83 basis points compared to the fourth quarter of 2024.


Transferred Listing to Nasdaq: On December 1, 2025, the Company voluntarily transferred the listing of its Class A Common Stock to Nasdaq, on the Nasdaq Global Select Market, from the New York Stock Exchange.


Preferred Stock Redemption: On December 31, 2025, the Company redeemed the 4.76 million outstanding shares of its 8.25% Series A Cumulative Redeemable Preferred Stock for $121.5 million, inclusive of accrued and unpaid dividends.


Common Share Repurchases: During the quarter ended December 31, 2025, the Company repurchased 0.2 million shares of its common stock at an average price of $7.93 per share for a total purchase price of $1.6 million.

FULL YEAR 2025 HIGHLIGHTS


Net Income: Net income attributable to common stockholders was $91.6 million, or $0.44 per diluted share, an increase of 139.8% compared to 2024.


Adjusted EBITDA: $297.6 million, a decrease of 0.1% compared to 2024.


Adjusted FFO per Diluted Share: $1.08, an increase of 3.8% compared to 2024.


Comparable RevPAR: $207.38, an increase of 0.4% compared to 2024.


Comparable Total RevPAR: $319.06, an increase of 1.2% compared to 2024, driven by a 2.6% increase in out-of-room revenues.


Comparable Hotel Adjusted EBITDA: $316.5 million, an increase of 1.1% compared to 2024.


Comparable Hotel Adjusted EBITDA Margin: 28.32%, an increase of 2 basis points compared to 2024.


Sedona Repositioning: The Company completed its $25 million return on investment project in Sedona, repositioning the former Orchards Inn as The Cliffs at L’Auberge and integrating it into the adjacent L’Auberge de Sedona. The two hotels now operate as one property.


Hotel Disposition: The Company completed the sale of the Westin Washington D.C. City Center for $92.0 million on February 19, 2025.


Credit Facility Refinanced and Upsized, Remaining Secured Debt Repaid: On July 22, 2025, the Company completed a $1.5 billion refinancing of its senior unsecured credit facility, increasing its size and extending its maturity schedule. The Company utilized the proceeds of the refinancing to repay its outstanding mortgage loans resulting in a fully unencumbered portfolio.


Common Share Repurchases: During the year ended December 31, 2025, the Company repurchased 4.8 million shares of its common stock at an average price of $7.72 for a total purchase price of $37.1 million.

“A stronger than anticipated re-acceleration in transient demand and out-of-room spend following the end of the federal government shutdown, combined with our disciplined approach to right-sized property level and corporate costs, enabled the Company to exceed the high end of our 2025 guidance for comparable total RevPAR growth, adjusted EBITDA, and adjusted FFO per share.

Throughout the year, both transient and group travelers continued to prioritize elevated travel experiences, even amid periods of economic uncertainty. Our thoughtfully curated portfolio of high quality hotels, in desirable destinations, benefited from this commitment in 2025 and is well positioned to carry that momentum into 2026.

While the political and economic backdrop warrants a degree of caution as we assess 2026, several distinct factors do support DiamondRock being constructive on the year including a holiday calendar that favors extended gatherings, our key markets hosting the majority of FIFA World Cup matches, America 250 celebrations, and post renovation tailwinds.

I am particularly proud of our team and operating partners for their unwavering focus on driving free cash flow per share growth – our north star at DiamondRock – as we work to deliver compelling total returns for our shareholders. Our free cash flow per share, defined as Adjusted FFO less total capital expenditures per share, surpassed 22% growth since 2023. We expect to build on this progress once again in 2026.”

Jeffrey J. Donnelly, Chief Executive Officer of DiamondRock Hospitality Company

OPERATING RESULTS

Please see “Non-GAAP Financial Measures” attached to this press release for an explanation of the terms “EBITDAre,” “Adjusted EBITDA,” “Hotel Adjusted EBITDA,” “Hotel Adjusted EBITDA Margin,” “FFO” and “Adjusted FFO” and a reconciliation of these measures to net income. “Comparable” operating results and statistics include all hotels owned as of December 31, 2025 for all periods presented. See “Comparable Hotel Operating Statistics and Results” and “Reconciliation of Comparable Operating Results” attached to this press release for an explanation of our comparable hotels and a reconciliation to historical amounts. “Actual” operating results and statistics include the operating results and statistics for all hotels for only the Company’s respective ownership periods.

                                                                Three Months Ended December 31,                                   Year Ended December 31,


                                                           2025     2024                        Change                 2025             2024                   Change


                                                                      (unaudited, $ amounts in millions, except hotel statistics and per
                                                                                                share amounts)




          Comparable Operating Results(1)



 ADR                                                   $295.79  $291.24                         1.6 %              $287.63          $284.26                    1.2 %



 Occupancy                                              68.2 %  69.5 %                      (1.3) %               72.1 %          72.7 %                 (0.6) %



 RevPAR                                                $201.83  $202.40                       (0.3) %              $207.38          $206.64                    0.4 %



 Total RevPAR                                          $311.00  $309.18                         0.6 %              $319.06          $315.28                    1.2 %



 Room Revenues                                          $178.2   $178.6                       (0.2) %               $726.3           $725.3                    0.1 %



 Total Revenues                                         $274.5   $272.8                         0.6 %             $1,117.4         $1,106.6                    1.0 %



 Hotel Adjusted EBITDA                                   $76.6    $73.9                         3.7 %               $316.5           $313.2                    1.1 %



 Hotel Adjusted EBITDA Margin                          27.92 % 27.09 %                       83 bps              28.32 %         28.30 %                  2  bps



 Available Rooms                                       882,740  882,280                           460             3,502,175        3,509,941                  (7,766)






          Actual Operating Results(2)



 Total Revenues                                         $274.5   $279.1                       (1.6) %             $1,120.5         $1,129.9                  (0.8) %



 Net income (loss) attributable to common stockholders   $23.8  $(13.7)                      273.7 %                $91.6            $38.2                  139.8 %



 Earnings (loss) per diluted share                       $0.12  $(0.07)                      271.4 %                $0.44            $0.18                  144.4 %



 Adjusted EBITDA(3)                                      $71.9    $69.6                         3.3 %               $297.6           $297.9                  (0.1) %



 Adjusted FFO(3)                                         $55.9    $50.4                        10.9 %               $227.0           $221.1                    2.7 %



 Adjusted FFO per diluted share(3)                       $0.27    $0.24                        12.5 %                $1.08            $1.04                    3.8 %






 (1)   Amounts include the pre-acquisition operating results for AC Hotel Minneapolis Downtown from January 1, 2024 to November 11, 2024 and exclude the operating results for Westin Washington D.C. City Center sold on February 19, 2025. The pre-acquisition operating results were obtained from the seller of the hotel
            during the acquisition due diligence process. We have made no adjustments to the amounts provided to us by the seller. The pre-acquisition operating results were not audited or reviewed by the Company's independent auditors.




 (2)
 Actual operating results include the operating results and statistics of all hotels for the Company's respective ownership periods.




 (3)
 Effective January 1, 2025, the Company excludes share-based compensation from its calculations of Adjusted EBITDA and Adjusted FFO.  Amounts reported for 2024 have been adjusted to reflect the current year presentation.


The Company’s 2025 actual results compare to the previously provided guidance ranges as follows:



            Metric                                        2025 Guidance                   2025 Actual


                                 Low End            High End



 Comparable RevPAR Growth                           (0.5) %                      0.5 %              0.4 %



 Comparable Total RevPAR Growth                       0.0 %                      1.0 %              1.2 %



 Adjusted EBITDA
    $287 million
          $295 million
  $297.6 million



 Adjusted FFO
    $213 million
          $221 million
  $227.0 million



 Adjusted FFO per share
   $1.02 per share
          $1.06 per share
  $1.08 per share


CAPITAL EXPENDITURES

The Company invested approximately $81.6 million in capital improvements at its hotels during the year ended December 31, 2025. Significant projects in 2025 included the following:

Hilton Garden Inn New York / Times Square Central:
The Company completed a renovation of the hotel’s guestrooms during the first quarter of 2025.

Sedona Repositioning:
The Company completed the repositioning of Orchards Inn as The Cliffs at L’Auberge during the third quarter 2025, which integrated the hotel with the adjacent L’Auberge de Sedona and included construction of a new hillside pool and path connecting the two properties, renovation of the guestrooms and creation of a new arrival experience and new outdoor event space. The renovation of the guestrooms, arrival experience and event space was completed in May 2025 and the pool and path connection were completed in September 2025. The two hotels now operate as one property.

Kimpton Hotel Palomar Phoenix:
The Company completed a renovation of the hotel’s guestrooms during the third quarter of 2025.

The Company expects to invest approximately $80 to $90 million in capital improvements at its hotels in 2026. Significant projects in 2026 include the following:

Courtyard New York Manhattan/Midtown East:
The Company commenced a renovation of the hotel’s guestrooms, which is expected to be completed by the end of the first quarter of 2026.

Henderson Park Inn:
The Company commenced a renovation of the hotel’s guestrooms and bathrooms, which is expected to be completed during the first quarter of 2026.

Westin San Diego Bayview:
The Company expects to commence a renovation of the hotel’s entrance and public spaces throughout the lobby, including lobby bar in mid-2026.

Atlanta Marriott Alpharetta:
The Company expects to commence a renovation of the hotel’s guestrooms during the fourth quarter of 2026.

Kimpton Shorebreak Huntington Beach Resort:
The Company expects to commence a renovation of the hotel’s guestrooms during the fourth quarter of 2026.

HOTEL DISPOSITION

On February 19, 2025, the Company completed the sale of the 410-room Westin Washington D.C. City Center for a contract price of $92.0 million. The sale price represented an 11.2x multiple on 2024 Hotel EBITDA and a 7.5% capitalization rate on 2024 hotel net operating income, or a capitalization rate of 5.6% inclusive of the Company’s projected capital expenditures. Excluding a one-time property tax credit and temporary discount on franchise fees the Hotel received in 2024, the sales price represented an 11.9x multiple on 2024 Hotel EBITDA and a 7.0% capitalization rate on 2024 Hotel net operating income, or a capitalization rate of 5.2% inclusive of the Company’s projected capital expenditures.

DEBT REFINANCING

On July 22, 2025, the Company successfully refinanced, upsized, and extended the maturities under its senior unsecured credit facility (the “Amended Credit Facility”), further enhancing the strength and flexibility of its conservative balance sheet. The Amended Credit Facility was increased from $1.2 billion to $1.5 billion and is comprised of (i) a $400 million revolving credit facility maturing in January 2030, with two six-month extension options exercisable at the Company’s option, (ii) a $500 million term loan maturing in January 2028, with two six-month extension options exercisable at the Company’s option, (iii) a $300 million term loan maturing in January 2029, with two six-month extension options exercisable at the Company’s option, and (iv) a $300 million term loan maturing in January 2030. The Amended Credit Facility bears interest pursuant to a leverage-based pricing grid ranging from 1.35% to 2.25% over SOFR. Based upon the Company’s current leverage, the pricing is at the lowest end of the grid.

The Company utilized the incremental proceeds from the Amended Credit Facility to repay the $71.1 million mortgage loan secured by the Worthington Renaissance in May 2025, the $53.9 million mortgage loan secured by the Hotel Clio in July 2025, and the $166.2 million mortgage loan secured by the Westin Boston Seaport District in September 2025. Following these repayments, the Company has no debt maturities until January 2028, its portfolio is fully unencumbered of secured debt, and its debt is fully prepayable without penalty.

BALANCE SHEET

As of December 31, 2025, the Company had total debt outstanding of $1.1 billion, consisting of three unsecured term loans bearing a weighted average interest rate of 5.0%, $400 million available under its undrawn revolving credit facility, and approximately $68.1 million of unrestricted cash on hand.

COMMON SHARE REPURCHASE PROGRAM

During the quarter ended December 31, 2025, the Company repurchased 0.2 million shares of its common stock at an average price of $7.93 per share for a total purchase price of $1.6 million. During the year ended December 31, 2025, the Company repurchased 4.8 million shares of its common stock at an average price of $7.72 for a total purchase price of $37.1 million. The Company currently has $137.0 million of remaining capacity under its $200.0 million share repurchase program.

PREFERRED STOCK REDEMPTION

On December 31, 2025, the Company redeemed all 4,760,000 outstanding shares of its 8.250% Series A Cumulative Redeemable Preferred Stock, utilizing approximately $121.5 million cash on hand to fund the redemption price of $25.00 per share, plus accrued and unpaid dividends. The Company no longer has preferred stock outstanding.

DIVIDENDS

On February 26, 2026, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.09 per share on its common stock. The dividend will be paid on April 14, 2026 to shareholders of record as of March 31, 2026. The Company expects to declare regular quarterly dividends of $0.09 per common share in 2026 and, depending on its 2026 operating income, a stub dividend in the fourth quarter of 2026.

The Company paid a fourth quarter cash dividend of $0.12 per share on its common stock, which included the Company’s regular quarterly dividend of $0.08 per common share, along with a stub dividend of $0.04 per common share on January 14, 2026 to shareholders of record as of December 31, 2025. Additionally, the Company paid a quarterly dividend of $0.515625 per share on its 8.250% Series A Cumulative Redeemable Preferred Stock on December 31, 2025 to shareholders of record as of December 19, 2025.

GUIDANCE

Achievement of the anticipated results is subject to the risks disclosed in the Company’s filings with the U.S. Securities and Exchange Commission, which may cause actual results to differ materially from the anticipated results expressed or implied below.

The Company anticipates full year 2026 results to be in the following ranges:



            Metric                           2025 Actual                        2026 Guidance


                                 Low End          High End



 Comparable RevPAR Growth                          $207.38                1.0 %                      3.0 %



 Comparable Total RevPAR Growth                    $319.06               1.25 %                     3.25 %



 Adjusted EBITDA
  $297.6 million
    $287 million
          $302 million



 Adjusted FFO
  $227.0 million
    $227 million
          $242 million



 Adjusted FFO per share
  $1.08 per share
   $1.09 per share
         $1.16 per share


Full year 2026 guidance is based in part on the following assumptions:

— Full year cash corporate expenses of approximately $25.0 million to $26.0 million, which excludes share-based compensation;

— Full year cash interest expense of approximately $57.5 million to $58.5 million; and

— Fully diluted weighted average common shares and units of 208.0 million.

EARNINGS CALL

The Company will host a conference call to discuss its fourth quarter and full year results on Friday, February 27, 2026, at 9:00 a.m. Eastern Time. The conference call will be accessible by telephone and through the internet. Interested individuals are requested to register for the call using this link to obtain dial-in and webcast details. Registration details are also available by visiting https://investor.drhc.com. A replay of the conference call webcast will be archived and available online.

ABOUT THE COMPANY

DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in leisure destinations and top gateway markets. The Company currently owns 35 premium quality hotels with approximately 9,600 rooms. The Company has strategically positioned its portfolio to be operated both under leading global brand families as well as independent boutique hotels in the lifestyle segment. For further information on the Company and its portfolio, please visit DiamondRock Hospitality Company’s website at www.drhc.com.

This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as “believe,” “expect,” “intend,” “project,” “forecast,” “plan” and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: the adverse impact of any future pandemic, epidemic or outbreak of any highly infectious disease on the U.S., regional and global economies, travel, the hospitality industry, and the financial condition and results of operations of the Company and its hotels; negative developments or volatility in the economy, including, but not limited to elevated inflation and interest rates, job loss or growth trends, the imposition of trade sanctions or tariffs and any potential retaliatory responses thereto, an increase in unemployment or a decrease in corporate earnings and investment; risks associated with the lodging industry overall, including, without limitation, decreases in the frequency of travel, decreases in the demand for, or frequency of, international travel as a result of evolving global trade dynamics or otherwise, and increases in operating costs; relationships with property managers; the ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; changes in taxes and government regulations which influence or determine wages, prices, construction procedures and costs; and other risk factors contained in the Company’s filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of the date of this release, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.



            DIAMONDROCK HOSPITALITY COMPANY






            CONSOLIDATED BALANCE SHEETS



           (in thousands, except share and per share amounts)




                                                                                                                                           December 31, 2025 December 31, 2024




            ASSETS                                                                                                                (Unaudited)        (Audited)



          Property and equipment, net                                                                                                            $2,596,458         $2,631,221



          Assets held for sale                                                                                                                            -            93,400



          Right-of-use assets                                                                                                                        89,041             89,931



          Restricted cash                                                                                                                            35,137             47,408



          Due from hotel managers                                                                                                                   137,787            145,947



          Prepaid and other assets                                                                                                                   77,194             82,963



          Cash and cash equivalents                                                                                                                  68,084             81,381



          Total assets                                                                                                                           $3,003,701         $3,172,251






            LIABILITIES AND EQUITY




            Liabilities:



          Debt, net of unamortized debt issuance costs                                                                                           $1,098,850         $1,095,294



          Lease liabilities                                                                                                                          87,053             85,235



          Due to hotel managers                                                                                                                     109,568            121,734



          Liabilities of assets held for sale                                                                                                             -             3,352



          Deferred rent                                                                                                                              77,405             73,535



          Unfavorable contract liabilities, net                                                                                                      56,549             58,208



          Accounts payable and accrued expenses                                                                                                      83,888             79,201



          Distributions declared and unpaid                                                                                                          25,903             49,034



          Deferred income related to key money, net                                                                                                   7,400              7,726



          Total liabilities                                                                                                                       1,546,616          1,573,319




            Equity:



          Preferred stock, $0.01 par value; 10,000,000 shares authorized;



          8.250% Series A Cumulative Redeemable Preferred Stock (liquidation                                                                             -                48
preference $25.00 per share), no shares issued and outstanding at December
31, 2025; 4,760,000 shares issued and outstanding at December 31, 2024



          Common stock, $0.01 par value; 400,000,000 shares authorized; 203,703,182                                                                   2,037              2,076
and 207,592,210 shares issued and outstanding at December 31, 2025 and
2024, respectively



          Additional paid-in capital                                                                                                              2,114,438          2,268,521



          Accumulated other comprehensive loss                                                                                                      (6,381)           (1,360)



          Distributions in excess of earnings                                                                                                     (662,209)         (679,050)



          Total stockholders' equity                                                                                                              1,447,885          1,590,235



          Noncontrolling interests                                                                                                                    9,200              8,697



          Total equity                                                                                                                            1,457,085          1,598,932



          Total liabilities and equity                                                                                                           $3,003,701         $3,172,251




            DIAMONDROCK HOSPITALITY COMPANY






            CONSOLIDATED STATEMENTS OF OPERATIONS



            (in thousands, except share and per share amounts)



            (unaudited)




                                                                                                                          Three Months Ended December 31,                   Year Ended December 31,


                                                                                                                     2025             2024                    2025        2024




            Revenues:



          Rooms                                                                                                 $178,163         $183,161                $728,606    $742,626



          Food and beverage                                                                                       68,709           69,403                 281,793     281,682



          Other                                                                                                   27,662           26,487                 110,092     105,575



          Total revenues                                                                                         274,534          279,051               1,120,491   1,129,883




            Operating Expenses:



          Rooms                                                                                                   45,050           46,659                 182,694     186,131



          Food and beverage                                                                                       47,026           48,056                 191,172     193,331



          Other departmental and support expenses                                                                 68,566           68,789                 270,698     268,563



          Management fees                                                                                          6,318            6,738                  25,838      27,149



          Franchise fees                                                                                           9,578           10,014                  38,360      39,724



          Other property-level expenses                                                                           22,659           24,789                 100,542     103,347



          Depreciation and amortization                                                                           28,719           29,046                 113,107     113,588



          Impairment losses                                                                                            -          32,573                   1,076      34,169



          Corporate expenses                                                                                       8,689            7,828                  34,404      52,911



            Total operating expenses                                                                             236,605          274,492                 957,891   1,018,913





          Interest expense                                                                                        15,661           16,082                  62,798      65,516



          Interest (income) and other (income) expense, net                                                      (2,233)         (1,072)                (6,759)    (4,337)



          Loss on debt extinguishment                                                                                  -                                  5,850



            Total other expenses, net                                                                             13,428           15,010                  61,889      61,179




            Income (Loss) before income taxes                                                          24,501         (10,451)                100,711      49,791



          Income tax benefit (expense)                                                                             1,849            (845)                  1,231     (1,541)




            Net income (loss)                                                                          26,350         (11,296)                101,942      48,250



          Less:  Net income (loss) attributable to                                                                 (134)              53                   (509)      (203)
noncontrolling interests




            Net income (loss) attributable to the Company                                              26,216         (11,243)                101,433      48,047



          Distributions to preferred stockholders                                                                (2,454)         (2,454)                (9,817)    (9,817)




            Net income (loss) attributable to common                                                  $23,762        $(13,697)                $91,616     $38,230
stockholders




            Earnings (Loss) per share:



          Earnings (Loss) per share available to common                                                            $0.12          $(0.07)                  $0.44       $0.18
stockholders - basic



          Earnings (Loss) per share available to common                                                            $0.12          $(0.07)                  $0.44       $0.18
stockholders - diluted






            Weighted-average number of common shares
outstanding:



          Basic                                                                                              204,239,712      208,965,671             206,226,487 210,286,342



          Diluted                                                                                            206,455,039      208,965,671             208,264,530 211,240,170


Non-GAAP Financial Measures

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

Use and Limitations of Non-GAAP Financial Measures

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

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

EBITDA and EBITDA

re

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

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

FFO

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

Adjustments to EBITDAre and FFO

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


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


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


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


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


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


Hotel Manager Transition and Hotel Pre-Opening Costs: We exclude the transition costs associated with a change in hotel manager and the pre-opening costs associated with the redevelopment or rebranding of a hotel because we believe these items do not reflect the ongoing performance of the Company or our hotels.


Share-Based Compensation Expense: We exclude share-based compensation expense as it is a non-cash item. This adjustment aligns with the calculation of Adjusted EBITDA for our financial covenant ratios under our credit facility, supporting consistency in our financial reporting and covenant compliance, as well as comparability with our peers.


Other Items: From time to time we incur costs or realize gains that we consider outside the ordinary course of business and that we do not believe reflect the ongoing performance of the Company or our hotels. Such items may include, but are not limited to, the following: non-cash realized gains or losses on our deferred compensation plan assets; management or franchise contract termination fees; terminated transaction costs; gains or losses from legal settlements; costs incurred related to natural disasters; and gains on property insurance claim settlements, other than income related to business interruption insurance.

In addition, to derive Adjusted FFO, we exclude any unrealized fair value adjustments to interest rate swaps and the portion of our non-cash ground lease expense recognized as interest expense. We exclude these non-cash amounts because they do not reflect the underlying performance of the Company.

Hotel Adjusted EBITDA

We believe that Hotel Adjusted EBITDA provides our investors a useful financial measure to evaluate our hotel operating performance, excluding the impact of our capital structure (primarily interest), our asset base (primarily depreciation and amortization), and our corporate-level expenses. With respect to Hotel Adjusted EBITDA, we believe that excluding the effect of corporate-level expenses provides a more complete understanding of the operating results over which individual hotels and third-party management companies have direct control. We believe property-level results provide investors with supplemental information on the ongoing operational performance of our hotels and effectiveness of the third-party management companies operating our business on a property-level basis. Hotel Adjusted EBITDA margins are calculated as Hotel Adjusted EBITDA divided by total hotel revenues.

Comparable Hotel Operating Statistics and Results

We believe that presenting comparable hotel operating statistics (such as ADR, occupancy, RevPAR, Total RevPAR and Available Rooms) and results (such as Room Revenues, Total Revenues, Hotel Adjusted EBITDA, and Hotel Adjusted EBITDA Margin) is useful to investors because these measures help facilitate year-over-year comparisons of the performance of hotels owned by us as of the reporting date. Our comparable portfolio includes hotels (i) owned and in operation by us for the entirety of the periods presented and (ii) acquired by us during the period as though the acquisition happened at the beginning of the period presented. We make adjustments for recently acquired hotels to include operating statistics and results for periods prior to our ownership. As a result, changes as compared to periods prior to our ownership will not necessarily correspond to changes in our actual results. In addition, comparable metrics excludes results and operating statistics for hotels that were sold during the reporting period or held for sale at the end of the period. We believe these comparable measures provide more consistent metrics for comparing the performance of our hotels.

Our comparable portfolio for the year ended December 31, 2025 includes all of our hotels owned as of December 31, 2025 and excludes the Westin Washington D.C. City Center sold on February 19, 2025.

Reconciliations of Non-GAAP Measures

EBITDA, EBITDAre, Adjusted EBITDA and Hotel Adjusted EBITDA

The following tables are reconciliations of our GAAP net income to EBITDA, EBITDAre and Adjusted EBITDA and Hotel Adjusted EBITDA (in thousands):

                                                            Three Months Ended December 31,                         Year Ended December 31,


                                                       2025            2024                   2025             2024
                                                                  (As                                   (As
                                                             Adjusted)(1)                          Adjusted)(1)




            Net income (loss)                    $26,350       $(11,296)              $101,942          $48,250



 Interest expense                                   15,661          16,082                 62,798           65,516



 Income tax (benefit) expense                      (1,849)            845                (1,231)           1,541



 Real estate related depreciation and amortization  28,719          29,046                113,107          113,588




            EBITDA                                68,881          34,677                276,616          228,895



 Impairment losses                                                 32,573                  1,076           34,169




            EBITDAre                              68,881          67,250                277,692          263,064



 Non-cash lease expense and other amortization       1,278           1,366                  5,140            5,970



 Share-based compensation expense (2)                1,760             934                  7,350            7,458



 Hotel pre-opening costs                                22              81                    501            1,006



 Terminated transaction costs                                                             1,058



 Loss on debt extinguishment                                                              5,850



 Severance costs                                                                                         20,362




            Adjusted EBITDA                       71,941          69,631                297,591          297,860



 Corporate expenses                                  6,911           6,854                 25,279           25,001



 Interest (income) and other (income) expense, net (2,215)        (1,032)               (6,042)         (4,247)




            Hotel Adjusted EBITDA                $76,637         $75,453               $316,828         $318,614






 (1)
 Effective January 1, 2025, the Company excludes share-based compensation expense from its calculation of Adjusted EBITDA.  Amounts reported for 2024 have been adjusted to reflect the current year presentation.




 (2)   For each of the three months ended December 31, 2025 and 2024, amounts include $0.1 million of non-cash items related to our deferred compensation plan. For the year ended December 31, 2025 and 2024, amounts include less than $0.1 million and $0.6 million,
            respectively, of non-cash items related to our deferred compensation plan.


                                                             Full Year 2026 Guidance


                                                     Low End                         High End




            Net income                           $101,100                          $117,100



 Interest expense                                    59,300                            58,300



 Income tax expense                                   1,500                             2,500



 Real estate related depreciation and amortization  111,500                           110,500




            EBITDAre                              273,400                           288,400



 Non-cash lease expense and other amortization        4,600                             4,600



 Share-based compensation expense                     9,000                             9,000




            Adjusted EBITDA                      $287,000                          $302,000


FFO and Adjusted FFO

The following tables are reconciliations of our GAAP net income to FFO and Adjusted FFO (in thousands except per share amounts):

                                                                                Three Months Ended December 31,                           Year Ended December 31,


                                                                           2025           2024                       2025                2024
                                                                                     (As
                                                                                Adjusted)(1)                              (As Adjusted)(1)




            Net income (loss)                               $26,350      $(11,296)                  $101,942             $48,250



          Real estate related depreciation and amortization             28,719         29,046                    113,107             113,588



          Impairment losses                                                           32,573                      1,076              34,169




            FFO                                              55,069         50,323                    216,125             196,007



          Distribution to preferred stockholders                       (2,454)       (2,454)                   (9,817)            (9,817)




            FFO available to common stock and unit holders   52,615         47,869                    206,308             186,190



          Non-cash lease expense and other amortization                  1,474          1,488                      5,891               6,092



          Share-based compensation expense (2)                           1,760            934                      7,350               7,458



          Terminated transaction costs                                                                           1,058



          Loss on debt extinguishment                                                                            5,850



          Severance costs                                                                                                          20,362



          Hotel pre-opening costs                                           22             81                        501               1,006




            Adjusted FFO available to common stock and unit $55,871        $50,372                   $226,958            $221,108
holders




            Adjusted FFO available to common stock and unit   $0.27          $0.24                      $1.08               $1.04
holders, per diluted share




            Diluted weighted average shares and units       207,496        209,960                    209,292             212,141






 (1)
 Effective January 1, 2025, the Company excludes share-based compensation from its calculation of Adjusted FFO.  Amounts reported for 2024 have been adjusted to reflect the current year presentation.




 (2)   For each of the three months ended December 31, 2025 and 2024, amounts include $0.1 million of non-cash items related to our deferred compensation plan. For the year ended December 31, 2025 and 2024, amounts include less than $0.1 million and $0.6 million,
            respectively, of non-cash items related to our deferred compensation plan.


                                                                                                   Full Year 2026 Guidance


                                                                                           Low End                         High End




            Net income                                                                 $101,100                          $117,100



 Real estate related depreciation and amortization                                        111,500                           110,500




            FFO available to common stock and unit holders                              212,600                           227,600



 Non-cash lease expense and other amortization                                              5,400                             5,400



 Share-based compensation expense                                                           9,000                             9,000




            Adjusted FFO available to common stock and unit holders                    $227,000                          $242,000




            Adjusted FFO available to common stock and unit holders, per diluted share    $1.09                             $1.16




            Diluted weighted average shares and units                                   208,000                           208,000


Reconciliation of Comparable Operating Results

The following presents the revenues, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA Margin together with comparable prior year results (in thousands):

                                                                Three Months Ended December 31,                Year Ended December 31,


                                                           2025            2024                   2025        2024




            Revenues                                $274,534        $279,051             $1,120,491  $1,129,883



 Hotel revenues from prior ownership (1)                                1,423                             9,256



 Hotel revenues from sold hotel (2)                                   (7,691)               (3,077)   (32,521)




            Comparable Revenues                     $274,534        $272,783             $1,117,414  $1,106,618






            Hotel Adjusted EBITDA                    $76,637         $75,453               $316,828    $318,614



 Hotel Adjusted EBITDA from prior ownership (1)                           485                             2,779



 Hotel Adjusted EBITDA from sold hotel (2)                            (2,039)                 (330)    (8,238)




            Comparable Hotel Adjusted EBITDA         $76,637         $73,899               $316,498    $313,155






            Hotel Adjusted EBITDA Margin             27.92 %        27.04 %               28.28 %    28.20 %




            Comparable Hotel Adjusted EBITDA Margin  27.92 %        27.09 %               28.32 %    28.30 %






 (1)   Amounts represent the pre-acquisition operating results for AC Hotel Minneapolis Downtown from January 1, 2024 to November 11, 2024. The pre-acquisition operating results were obtained from the seller of the hotel during the acquisition due diligence process. We have made no adjustments to the amounts provided
            to us by the seller. The pre-acquisition operating results were not audited or reviewed by the Company's independent auditors.




 (2)
 Amounts represent the operating results for Westin Washington D.C. City Center sold on February 19, 2025.


Selected Quarterly Comparable Operating Information

The following tables are presented to provide investors with selected quarterly comparable operating information for the Company’s current portfolio of 35 hotels with 9,595 rooms.

                                       Quarter 1, Quarter 2,  Quarter 3,   Quarter 4,
                                           2024        2024         2024          2024   Full Year 2024



 ADR                                     $269.95     $292.59      $282.05       $291.24        $284.26



 Occupancy                                67.6 %     77.5 %      76.2 %       69.5 %        72.7 %



 RevPAR                                  $182.50     $226.83      $214.79       $202.40        $206.64



 Total RevPAR                            $287.09     $346.27      $318.60       $309.18        $315.28



 Revenues (in thousands)                $250,491    $302,217     $281,127      $272,783     $1,106,618


  Hotel Adjusted EBITDA (in thousands)    $60,047     $97,206      $82,003       $73,899       $313,155



 Hotel Adjusted EBITDA Margin            23.97 %    32.16 %     29.17 %      27.09 %       28.30 %



 Available Rooms                         872,508     872,781      882,372       882,280      3,509,941


                                       Quarter 1, Quarter 2,  Quarter 3,   Quarter 4,
                                           2025        2025         2025          2025   Full Year 2025



 ADR                                     $277.36     $295.78      $281.05       $295.79        $287.63



 Occupancy                                67.1 %     76.8 %      76.2 %       68.2 %        72.1 %



 RevPAR                                  $186.20     $227.04      $214.21       $201.83        $207.38



 Total RevPAR                            $291.56     $350.14      $323.29       $311.00        $319.06



 Revenues (in thousands)                $251,776    $305,720     $285,384      $274,534     $1,117,414


  Hotel Adjusted EBITDA (in thousands)    $61,333     $95,360      $83,168       $76,637       $316,498



 Hotel Adjusted EBITDA Margin            24.36 %    31.19 %     29.14 %      27.92 %       28.32 %



 Available Rooms                         863,550     873,145      882,740       882,740      3,502,175




            Market Capitalization as of December 31, 2025




            (in thousands)




            Enterprise Value





 Common equity capitalization (at December 31, 2025 closing price of $8.96/share)                            $1,847,691



 Consolidated debt (face amount)                                                                              1,100,000



 Cash and cash equivalents                                                                                     (68,084)



 Total enterprise value                                                                                      $2,879,607




            Share Reconciliation





 Common shares outstanding                                                                                      203,703



 Operating partnership units                                                                                      1,135



 Unvested restricted stock held by management and employees                                                         841



 Share grants under deferred compensation plan                                                                      536



 Combined shares and units                                                                                      206,215




   Debt Summary as of December 31, 2025




        (dollars in thousands)


                                                                                                                        Outstanding




            Loan                                                                   Interest Rate           Term       Principal                Maturity



 Unsecured term loan                                                    SOFR + 1.35%               Variable              $500,000   January 2028
                                                                          (1)                                                         (3)



 Unsecured term loan                                                    SOFR + 1.35%               Variable               300,000   January 2029
                                                                          (2)                                                         (3)



 Unsecured term loan                                                    SOFR + 1.35%
                                                                          (2)                        Variable               300,000   January 2030



 Senior unsecured credit facility                                                     SOFR + 1.40% Variable                        January 2030
                                                                                                                                      (3)



 Total debt                                                                                                              1,100,000



      Unamortized debt issuance costs (4)                                                                                  (1,150)



 Debt, net of unamortized debt issuance costs                                                                       $1,098,850






            Debt Metrics



 Weighted-average interest rate (5)                                                                                          5.0 %



 Percent fixed rate (5)                                                                                                       30 %



 Net debt to EBITDA (6)
 3.5x



 Average years to maturity                                                                                                     2.8



 Average years to maturity - including extensions                                                                              3.6






 (1)
 Interest rate was 4.86% as of December 31, 2025, which includes the effect of interest rate swaps.




 (2)
 Interest rate was 5.01% as of December 31, 2025.




 (3)   Maturity date may be extended for two six-month periods upon the payment of applicable fees and the satisfaction of certain customary
            conditions.




 (4)   Excludes debt issuance costs related to our senior unsecured credit facility, which are included within Prepaid and Other Assets on the
            accompanying consolidated balance sheet.




 (5)
 Includes the effect of interest rate swaps as of December 31, 2025.




 (6)
 Trailing 12 month Adjusted EBITDA as of December 31, 2025.




            Hotel Information as of February 26, 2026






            Hotel                              Rooms               Location                           Franchisor                     Contract             Operator                Contract Expiration            Ground Lease      Mortgage
                                                                                                                    Expiration                                                                           Expiration              Debt



 AC Hotel Minneapolis Downtown                     245   Minneapolis, MN                    Marriott                          Oct 2041          Sage Hospitality        At will with no fee



 Atlanta Marriott Alpharetta                       318   Atlanta, GA                        Marriott                          Sep 2050          Aimbridge
                                                                                                                               (1)               Hospitality            At will with no fee



 Bourbon Orleans Hotel                             220   New Orleans, LA                    Independent                                         Aimbridge
                                                                                                                                                 Hospitality            At will with no fee



 Cavallo Point, The Lodge at the Golden Gate       142   Sausalito, CA                      Independent                                         Passport Resorts        At will with fee                                    2066



 Chicago Marriott Downtown Magnificent Mile      1,200   Chicago, IL                                            N/A                             Marriott                Dec 2038(2)



 Chico Hot Springs Resort & Day Spa                117   Pray, MT                           Independent                                         EOS Hospitality         At will with no fee



 Courtyard Denver Downtown                         177   Denver, CO                         Marriott                          Oct 2027          Sage Hospitality        At will with no fee



 Courtyard New York Manhattan/Fifth Avenue         189   New York, NY                       Marriott                          Dec 2035          Highgate Hotels         At will with no fee                                 2121



 Courtyard New York Manhattan/Midtown East         321   New York, NY                       Marriott                          Aug 2042          Highgate Hotels         At will with no fee



 Embassy Suites by Hilton Bethesda                 272   Bethesda, MD
          Hilton                            Feb 2037          Sage Hospitality        At will with no fee                                 2087



 Havana Cabana Key West                            106   Key West, FL                       Independent                                         EOS Hospitality         At will with no fee



 Henderson Beach Resort                            270   Destin, FL                         Independent                                         Aimbridge
                                                                                                                                                 Hospitality            At will with no fee



 Henderson Park Inn                                 37   Destin, FL                         Independent                                         Aimbridge
                                                                                                                                                 Hospitality            At will with no fee



 Hilton Garden Inn New York/Times Square Central   282   New York, NY
          Hilton                            Jun 2033          Highgate Hotels         At will with no fee



 Hotel Champlain Burlington                        258   Burlington, VT
          Hilton                            Jun 2034          Aimbridge
                                                                                                                                                 Hospitality            At will with no fee



 Hotel Clio                                        199   Denver, CO                         Marriott                          Oct 2036          Sage Hospitality        At will with no fee



 Hotel Emblem San Francisco                         96   San Francisco, CA                  Independent                                         Pacifica Hotels         At will with no fee



 Kimpton Hotel Palomar Phoenix                     242   Phoenix, AZ                                            N/A                             IHG Hotels &            Dec 2028 or upon
                                                                                                                                                 Resorts                 sale                                               2085



 Kimpton Shorebreak Fort Lauderdale Beach Resort    96   Fort Lauderdale,                   IHG Hotels &                      Apr 2041          HEI Hotels &
                                                          FL                                 Resorts                                             Resorts                At will with no fee



 Kimpton Shorebreak Huntington Beach Resort        157   Huntington Beach,                                      N/A                             IHG Hotels &
                                                          CA                                                                                     Resorts                At will with no fee



 L'Auberge de Sedona                               158   Sedona, AZ                         Independent                                         Aimbridge
                                                                                                                                                 Hospitality            At will with no fee                                 2070



 Lake Austin Spa Resort                             40   Austin, TX                         Independent                                         EOS Hospitality         At will with no fee



 Margaritaville Beach House Key West               186   Key West, FL                       Margaritaville                    Apr 2041          Ocean Properties
  Jul 2027



 Salt Lake City Marriott Downtown at City Creek    510   Salt Lake City, UT                 Marriott                          Sep 2050          HEI Hotels &
                                                                                                                               (1)               Resorts                At will with no fee                            2056/2106



 The Dagny Boston                                  403   Boston, MA                         Independent                                         Aimbridge
                                                                                                                                                 Hospitality            At will with no fee



 The Gwen                                          311   Chicago, IL                        Marriott                          Sep 2035          HEI Hotels &
                                                                                                                                                 Resorts                At will with no fee



 The Hythe Vail                                    344   Vail, CO                           Marriott                          Dec 2041          Vail Resorts            At will with fee



 The Landing Lake Tahoe Resort & Spa                82   South Lake Tahoe,                  Independent                                         Aimbridge
                                                          CA                                                                                     Hospitality            At will with no fee



 The Lindy Renaissance Charleston Hotel            167   Charleston, SC                     Marriott                          Dec 2031          Aimbridge
                                                                                                                                                 Hospitality            At will with no fee



 The Lodge at Sonoma Resort                        182   Sonoma, CA                         Marriott                          Dec 2035          Sage Hospitality        At will with no fee



 Tranquility Bay Beachfront Resort                 103   Marathon, FL                       Independent                                         EOS Hospitality         At will with no fee



 Westin Boston Waterfront                          793   Boston, MA                         Marriott                          Dec 2026          Aimbridge
                                                                                                                                                 Hospitality            At will with no fee                                 2099



 Westin Fort Lauderdale Beach Resort               432   Fort Lauderdale,                   Marriott                          Dec 2034          HEI Hotels &
                                                          FL                                                                                     Resorts                At will with no fee



 Westin San Diego Bayview                          436   San Diego, CA                      Marriott                          Dec 2040          Aimbridge
                                                                                                                                                 Hospitality            At will with no fee



 Worthington Renaissance Fort Worth Hotel          504   Fort Worth, TX                                         N/A                             Marriott                Dec 2030 (3)






 (1)
 The franchise agreement may be terminated at Marriott's option after September 2040.




 (2)
 Marriott has two 10-year options to extend the management agreement.




 (3)   Marriott is entitled to one ten-year extension option if they achieve a certain level of operating profit for the three-year period ending December 31, 2029. Marriott is entitled to a second ten-year extension option if they achieve a
            certain level of operating profit for the three-year period ending December 31, 2039.




 Operating Statistics - Fourth Quarter




 ADR                         Occupancy

 RevPAR                                   Total RevPAR


                                                  4Q 2025     4Q 2024  Change   4Q 2025          4Q 2024               Change                      4Q 2025            4Q 2024    Change     4Q 2025                  4Q 2024      Change





 AC Hotel Minneapolis Downtown (1)               $153.30      $166.16  (7.7) %    57.7 %           51.0 %                6.7 %                       $88.52              $84.69      4.5 %     $103.87                    $98.86        5.1 %



 Atlanta Marriott Alpharetta                     $164.24      $158.90    3.4 %    59.0 %           63.1 %              (4.1) %                       $96.89             $100.19    (3.3) %     $157.84                   $150.55        4.8 %



 Bourbon Orleans Hotel                           $252.16      $276.79  (8.9) %    69.1 %           67.8 %                1.3 %                      $174.12             $187.68    (7.2) %     $228.46                   $241.51      (5.4) %



 Cavallo Point, The Lodge at the Golden Gate     $621.47      $562.69   10.4 %    59.8 %           61.6 %              (1.8) %                      $371.67             $346.56      7.2 %   $1,006.87                   $922.73        9.1 %



 Chicago Marriott Downtown Magnificent Mile      $274.62      $271.35    1.2 %    59.2 %           65.9 %              (6.7) %                      $162.64             $178.79    (9.0) %     $268.41                   $289.07      (7.1) %



 Chico Hot Springs Resort & Day Spa              $199.50      $205.51  (2.9) %    60.4 %           59.7 %                0.7 %                      $120.43             $122.66    (1.8) %     $304.82                   $315.22      (3.3) %



 Courtyard Denver Downtown                       $209.21      $186.30   12.3 %    75.0 %           71.1 %                3.9 %                      $156.92             $132.42     18.5 %     $178.57                   $149.79       19.2 %



 Courtyard New York Manhattan/Fifth Avenue       $417.84      $379.78   10.0 %    99.0 %           96.2 %                2.8 %                      $413.68             $365.21     13.3 %     $420.20                   $370.86       13.3 %



 Courtyard New York Manhattan/Midtown East       $462.32      $459.19    0.7 %    93.4 %           91.4 %                2.0 %                      $431.67             $419.84      2.8 %     $442.88                   $432.71        2.4 %



 Embassy Suites by Hilton Bethesda               $154.05      $174.53 (11.7) %    59.0 %           63.6 %              (4.6) %                       $90.87             $111.03   (18.2) %     $108.74                   $129.20     (15.8) %



 Havana Cabana Key West                          $258.69      $254.64    1.6 %    34.8 %           74.2 %             (39.4) %                       $90.11             $188.92   (52.3) %     $142.87                   $282.60     (49.4) %



 Henderson Beach Resort                          $288.03      $304.09  (5.3) %    42.9 %           35.7 %                7.2 %                      $123.68             $108.65     13.8 %     $316.76                   $257.64       22.9 %



 Henderson Park Inn                              $515.66      $505.27    2.1 %    56.9 %           50.9 %                6.0 %                      $293.43             $257.09     14.1 %     $489.38                   $437.54       11.8 %



 Hilton Garden Inn New York/Times Square Central $381.06      $365.01    4.4 %    98.5 %           98.5 %                  - %                     $375.37             $359.50      4.4 %     $405.49                   $392.14        3.4 %



 Hotel Champlain Burlington                      $229.92      $226.21    1.6 %    63.7 %           75.6 %             (11.9) %                      $146.48             $171.06   (14.4) %     $225.80                   $252.28     (10.5) %



 Hotel Clio                                      $305.15      $283.43    7.7 %    75.8 %           78.6 %              (2.8) %                      $231.33             $222.85      3.8 %     $420.64                   $400.46        5.0 %



 Hotel Emblem San Francisco                      $198.67      $157.32   26.3 %    59.2 %           52.2 %                7.0 %                      $117.67              $82.08     43.4 %     $141.68                   $110.38       28.4 %



 Kimpton Hotel Palomar Phoenix                   $248.80      $216.36   15.0 %    74.0 %           72.5 %                1.5 %                      $184.22             $156.77     17.5 %     $332.51                   $280.73       18.4 %



 Kimpton Shorebreak Fort Lauderdale Beach Resort $196.54      $208.69  (5.8) %    67.9 %           71.5 %              (3.6) %                      $133.49             $149.24   (10.6) %     $274.85                   $278.46      (1.3) %



 Kimpton Shorebreak Huntington Beach Resort      $253.97      $261.23  (2.8) %    75.4 %           76.9 %              (1.5) %                      $191.48             $200.88    (4.7) %     $305.53                   $305.22        0.1 %



 L'Auberge de Sedona (2)                         $742.23      $835.12 (11.1) %    68.8 %           53.4 %               15.4 %                      $510.66             $445.71     14.6 %     $886.16                   $775.11       14.3 %



 Lake Austin Spa Resort                          $997.24      $984.52    1.3 %    51.6 %           53.6 %              (2.0) %                      $514.61             $527.84    (2.5) %   $1,259.16                 $1,273.96      (1.2) %



 Margaritaville Beach House Key West             $359.69      $379.48  (5.2) %    80.5 %           77.0 %                3.5 %                      $289.59             $292.30    (0.9) %     $398.02                   $401.40      (0.8) %



 Salt Lake City Marriott Downtown at City Creek  $193.62      $190.05    1.9 %    61.7 %           60.7 %                1.0 %                      $119.41             $115.28      3.6 %     $171.14                   $181.89      (5.9) %



 The Dagny Boston                                $302.15      $286.50    5.5 %    84.9 %           84.1 %                0.8 %                      $256.43             $241.06      6.4 %     $281.67                   $265.89        5.9 %



 The Gwen                                        $323.95      $299.97    8.0 %    71.3 %           74.1 %              (2.8) %                      $231.04             $222.36      3.9 %     $332.41                   $341.43      (2.6) %



 The Hythe Vail                                  $414.00      $452.36  (8.5) %    43.7 %           45.8 %              (2.1) %                      $180.80             $207.40   (12.8) %     $287.22                   $315.06      (8.8) %



 The Landing Lake Tahoe Resort & Spa             $343.29      $337.17    1.8 %    51.3 %           50.4 %                0.9 %                      $176.10             $169.88      3.7 %     $338.91                   $328.16        3.3 %



 The Lindy Renaissance Charleston Hotel          $347.48      $352.82  (1.5) %    86.1 %           87.0 %              (0.9) %                      $299.35             $307.03    (2.5) %     $400.25                   $378.86        5.6 %



 The Lodge at Sonoma Resort                      $411.99      $390.94    5.4 %    68.9 %           70.2 %              (1.3) %                      $283.82             $274.39      3.4 %     $442.58                   $446.99      (1.0) %



 Tranquility Bay Beachfront Resort               $562.23      $529.17    6.2 %    58.2 %           67.0 %              (8.8) %                      $327.45             $354.55    (7.6) %     $420.15                   $461.87      (9.0) %



 Westin Boston Waterfront                        $277.84      $270.24    2.8 %    74.2 %           75.2 %              (1.0) %                      $206.20             $203.11      1.5 %     $314.93                   $323.13      (2.5) %



 Westin Fort Lauderdale Beach Resort             $241.10      $247.81  (2.7) %    72.2 %           74.4 %              (2.2) %                      $174.17             $184.40    (5.5) %     $378.88                   $387.39      (2.2) %



 Westin San Diego Bayview                        $198.07      $222.23 (10.9) %    68.8 %           68.1 %                0.7 %                      $136.33             $151.43   (10.0) %     $216.63                   $215.55        0.5 %



 Worthington Renaissance Fort Worth Hotel        $200.31      $203.43  (1.5) %    70.1 %           69.2 %                0.9 %                      $140.49             $140.86    (0.3) %     $272.44                   $262.68        3.7 %




            Comparable Total (3)               $295.79      $291.24    1.6 %    68.2 %           69.5 %              (1.3) %                      $201.83             $202.40    (0.3) %     $311.00                   $309.18        0.6 %






 (1) Hotel was acquired on November 12, 2024.  Amounts reflect the pre-acquisition operating results of the period from October 1, 2024 to November 11,
          2024.




 (2) During the fourth quarter 2025, Orchards Inn Sedona and L'Auberge de Sedona were combined and operate as one hotel. Amounts presented have been
          adjusted to reflect the combination.




 (3) Amounts include the pre-acquisition operating results of the AC Minneapolis Downtown acquired in 2024 and exclude the Westin Washington D.C. City
          Center which was sold in 2025.




 Operating Statistics - Year to Date




 ADR                           Occupancy

 RevPAR                                     Total RevPAR


                                                   YTD 2025     YTD 2024  Change   YTD 2025          YTD 2024              Change                     YTD 2025            YTD 2024    Change     YTD 2025                  YTD 2024      Change





 AC Hotel Minneapolis Downtown (1)                 $157.50       $171.78  (8.3) %     59.7 %            57.5 %               2.2 %                       $94.04               $98.75    (4.8) %      $109.19                    $112.21      (2.7) %



 Atlanta Marriott Alpharetta                       $164.41       $157.97    4.1 %     65.5 %            64.4 %               1.1 %                      $107.65              $101.66      5.9 %      $157.03                    $148.11        6.0 %



 Bourbon Orleans Hotel                             $239.49       $249.85  (4.1) %     68.0 %            68.5 %             (0.5) %                      $162.87              $171.10    (4.8) %      $213.33                    $217.43      (1.9) %



 Cavallo Point, The Lodge at the Golden Gate       $591.24       $574.60    2.9 %     59.7 %            60.3 %             (0.6) %                      $352.90              $346.53      1.8 %      $927.11                    $909.68        1.9 %



 Chicago Marriott Downtown Magnificent Mile        $262.61       $257.60    1.9 %     63.2 %            63.4 %             (0.2) %                      $166.04              $163.27      1.7 %      $276.52                    $271.18        2.0 %



 Chico Hot Springs Resort & Day Spa                $225.43       $205.35    9.8 %     67.1 %            70.4 %             (3.3) %                      $151.32              $144.62      4.6 %      $355.89                    $360.84      (1.4) %



 Courtyard Denver Downtown                         $212.38       $202.95    4.6 %     78.8 %            77.2 %               1.6 %                      $167.44              $156.69      6.9 %      $188.38                    $175.14        7.6 %



 Courtyard New York Manhattan/Fifth Avenue         $326.23       $306.10    6.6 %     97.7 %            91.5 %               6.2 %                      $318.72              $280.11     13.8 %      $324.42                    $286.81       13.1 %



 Courtyard New York Manhattan/Midtown East         $356.47       $357.72  (0.3) %     90.9 %            92.3 %             (1.4) %                      $323.96              $330.11    (1.9) %      $333.80                    $341.80      (2.3) %



 Embassy Suites by Hilton Bethesda                 $166.35       $175.06  (5.0) %     65.6 %            69.7 %             (4.1) %                      $109.18              $122.07   (10.6) %      $128.26                    $139.98      (8.4) %



 Havana Cabana Key West                            $269.13       $293.52  (8.3) %     62.9 %            77.7 %            (14.8) %                      $169.29              $227.99   (25.7) %      $247.74                    $311.00     (20.3) %



 Henderson Beach Resort                            $379.44       $406.38  (6.6) %     56.2 %            53.1 %               3.1 %                      $213.40              $215.61    (1.0) %      $432.04                    $402.47        7.3 %



 Henderson Park Inn                                $574.13       $575.56  (0.2) %     68.8 %            65.6 %               3.2 %                      $394.77              $377.33      4.6 %      $658.31                    $602.41        9.3 %



 Hilton Garden Inn New York/Times Square Central   $295.95       $280.33    5.6 %     90.7 %            92.0 %             (1.3) %                      $268.52              $257.81      4.2 %      $298.73                    $288.75        3.5 %



 Hotel Champlain Burlington                        $225.25       $235.51  (4.4) %     69.6 %            74.6 %             (5.0) %                      $156.74              $175.69   (10.8) %      $229.32                    $241.76      (5.1) %



 Hotel Clio                                        $315.61       $304.46    3.7 %     77.8 %            77.9 %             (0.1) %                      $245.52              $237.26      3.5 %      $419.90                    $401.84        4.5 %



 Hotel Emblem San Francisco                        $205.47       $195.52    5.1 %     61.3 %            59.9 %               1.4 %                      $126.04              $117.20      7.5 %      $154.10                    $148.49        3.8 %



 Kimpton Hotel Palomar Phoenix                     $240.60       $222.82    8.0 %     67.7 %            75.1 %             (7.4) %                      $162.92              $167.41    (2.7) %      $274.61                    $279.75      (1.8) %



 Kimpton Shorebreak Fort Lauderdale Beach Resort   $202.63       $203.39  (0.4) %     71.6 %            73.7 %             (2.1) %                      $145.12              $149.98    (3.2) %      $287.08                    $272.23        5.5 %



 Kimpton Shorebreak Huntington Beach Resort        $301.02       $312.59  (3.7) %     79.7 %            82.1 %             (2.4) %                      $239.87              $256.56    (6.5) %      $362.58                    $372.52      (2.7) %



 L'Auberge de Sedona (2)                           $733.64       $666.34   10.1 %     49.6 %            59.7 %            (10.1) %                      $363.88              $397.59    (8.5) %      $674.38                    $698.88      (3.5) %



 Lake Austin Spa Resort                          $1,041.28     $1,012.08    2.9 %     52.0 %            57.8 %             (5.8) %                      $541.54              $585.19    (7.5) %    $1,330.79                  $1,373.57      (3.1) %



 Margaritaville Beach House Key West               $376.79       $396.94  (5.1) %     82.7 %            82.3 %               0.4 %                      $311.50              $326.63    (4.6) %      $425.03                    $443.42      (4.1) %



 Salt Lake City Marriott Downtown at City Creek    $203.47       $192.28    5.8 %     68.5 %            66.5 %               2.0 %                      $139.47              $127.86      9.1 %      $193.65                    $181.28        6.8 %



 The Dagny Boston                                  $295.92       $277.32    6.7 %     85.4 %            85.5 %             (0.1) %                      $252.62              $236.99      6.6 %      $281.05                    $263.74        6.6 %



 The Gwen                                          $318.29       $296.64    7.3 %     74.1 %            75.2 %             (1.1) %                      $235.78              $222.93      5.8 %      $351.57                    $332.48        5.7 %



 The Hythe Vail                                    $434.91       $425.03    2.3 %     57.1 %            59.8 %             (2.7) %                      $248.32              $254.21    (2.3) %      $389.33                    $394.28      (1.3) %



 The Landing Lake Tahoe Resort & Spa               $421.17       $415.66    1.3 %     60.9 %            60.7 %               0.2 %                      $256.68              $252.27      1.7 %      $468.60                    $455.60        2.9 %



 The Lindy Renaissance Charleston Hotel            $346.00       $344.88    0.3 %     88.0 %            87.8 %               0.2 %                      $304.47              $302.80      0.6 %      $394.72                    $375.87        5.0 %



 The Lodge at Sonoma Resort                        $420.81       $405.07    3.9 %     70.9 %            67.3 %               3.6 %                      $298.30              $272.43      9.5 %      $474.93                    $443.01        7.2 %



 Tranquility Bay Beachfront Resort                 $598.88       $601.79  (0.5) %     70.2 %            73.7 %             (3.5) %                      $420.39              $443.56    (5.2) %      $539.69                    $571.03      (5.5) %



 Westin Boston Waterfront                          $274.08       $265.23    3.3 %     82.1 %            83.6 %             (1.5) %                      $224.97              $221.75      1.5 %      $347.67                    $348.54      (0.2) %



 Westin Fort Lauderdale Beach Resort               $253.60       $254.95  (0.5) %     74.9 %            78.1 %             (3.2) %                      $190.03              $199.04    (4.5) %      $410.86                    $427.02      (3.8) %



 Westin San Diego Bayview                          $224.08       $229.57  (2.4) %     77.7 %            72.0 %               5.7 %                      $174.05              $165.35      5.3 %      $241.98                    $222.36        8.8 %



 Westin Washington D.C. City Center                $254.66       $188.28   35.3 %     45.4 %            60.7 %            (15.3) %                      $115.57              $114.25      1.2 %      $153.18                    $146.08        4.9 %



 Worthington Renaissance Fort Worth Hotel          $202.16       $206.33  (2.0) %     71.8 %            70.7 %               1.1 %                      $145.12              $145.86    (0.5) %      $271.37                    $269.60        0.7 %




            Comparable Total (3)                 $287.63       $284.26    1.2 %     72.1 %            72.7 %             (0.6) %                      $207.38              $206.64      0.4 %      $319.06                    $315.28        1.2 %






 (1) Hotel was acquired on November 12, 2024.  Amounts reflect the pre-acquisition operating results of the period from January 1, 2024 to November 11,
          2024.




 (2) During the fourth quarter 2025, Orchards Inn Sedona and L'Auberge de Sedona were combined and operate as one hotel. Amounts presented have been
          adjusted to reflect the combination.




 (3) Amounts include the pre-acquisition operating results of the AC Minneapolis Downtown acquired in 2024 and exclude the Westin Washington D.C. City
          Center which was sold in 2025.




 Hotel Adjusted EBITDA Reconciliation - Fourth Quarter 2025




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


                                                  Total Revenues    Depreciation              Interest Expense                           Adjustments (1)



 AC Hotel Minneapolis Downtown                           $2,341               $190                         $301
          $                           -
  $             -                           $491



 Atlanta Marriott Alpharetta                             $4,618             $1,348                         $396
          $                           -
  $             -                         $1,744



 Bourbon Orleans Hotel                                   $4,624               $664                       $1,197
          $                           -                  $3                          $1,864



 Cavallo Point, The Lodge at the Golden Gate            $13,154             $1,734                       $1,491
          $                           -                 $94                          $3,319



 Chicago Marriott Downtown Magnificent Mile             $29,632             $5,063                       $3,140                                          $6               $(397)                         $7,812



 Chico Hot Springs Resort & Day Spa                      $3,281             $(161)                        $498
          $                           -                $(2)                           $335



 Courtyard Denver Downtown                               $2,908               $843                         $401
          $                           -
  $             -                         $1,244



 Courtyard New York Manhattan/Fifth Avenue               $7,306             $1,961                         $345                                        $283                 $217                          $2,806



 Courtyard New York Manhattan/Midtown East              $13,079             $5,478                         $544
          $                           -
  $             -                         $6,022



 Embassy Suites by Hilton Bethesda                       $2,721           $(1,780)                        $466
          $                           -              $1,435                            $121



 Havana Cabana Key West                                  $1,393             $(425)                        $252
          $                           -
  $             -                         $(173)



 Henderson Beach Resort                                  $7,868             $(315)                      $1,135
          $                           -
  $             -                           $820



 Henderson Park Inn                                      $1,666               $265                         $279
          $                           -
  $             -                           $544



 Hilton Garden Inn New York/Times Square Central        $10,520             $3,428                         $788
          $                           -
  $             -                         $4,216



 Hotel Champlain Burlington                              $5,359               $339                         $809
          $                           -
  $             -                         $1,148



 Hotel Clio                                              $7,701             $1,312                         $850
          $                           -                  $5                          $2,167



 Hotel Emblem San Francisco                              $1,251             $(357)                        $292
          $                           -
  $             -                          $(65)



 Kimpton Hotel Palomar Phoenix                           $7,403               $979                         $725
          $                           -                $190                          $1,894



 Kimpton Shorebreak Fort Lauderdale Beach Resort         $2,427             $(105)                        $371
          $                           -
  $             -                           $266



 Kimpton Shorebreak Huntington Beach Resort              $4,413               $399                         $347
          $                           -
  $             -                           $746



 L'Auberge de Sedona (2)                                $12,881             $3,910                       $1,139
          $                           -                 $42                          $5,091



 Lake Austin Spa Resort                                  $4,634               $430                         $723
          $                           -
  $             -                         $1,153



 Margaritaville Beach House Key West                     $6,811             $1,692                         $755
          $                           -
  $             -                         $2,447



 Salt Lake City Marriott Downtown at City Creek          $8,030             $1,602                       $1,071
          $                           -                 $11                          $2,684



 The Dagny Boston                                       $10,443             $2,329                       $1,596
          $                           -
  $             -                         $3,925



 The Gwen                                                $9,511               $460                         $767
          $                           -
  $             -                         $1,227



 The Hythe Vail                                          $9,090             $1,387                         $808
          $                           -
  $             -                         $2,195



 The Landing Lake Tahoe Resort & Spa                     $2,557                $97                         $324
          $                           -
  $             -                           $421



 The Lindy Renaissance Charleston Hotel                  $6,149             $2,515                         $378
          $                           -
  $             -                         $2,893



 The Lodge at Sonoma Resort                              $7,411             $1,315                         $493
          $                           -
  $             -                         $1,808



 Tranquility Bay Beachfront Resort                       $3,981               $495                         $472
          $                           -
  $             -                           $967



 Westin Boston Seaport District                         $22,991             $2,862                       $2,284
          $                           -              $(124)                         $5,022



 Westin Fort Lauderdale Beach Resort                    $15,058             $3,374                         $963
          $                           -
  $             -                         $4,337



 Westin San Diego Bayview                                $8,689               $122                       $1,361
          $                           -
  $             -                         $1,483



 Worthington Renaissance Fort Worth Hotel               $12,633             $2,693                         $958
          $                           -
  $             -                         $3,651




            Total                                    $274,534            $46,143                      $28,719                                        $289               $1,474                         $76,637






 (1) Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash
          amortization of intangible assets and liabilities.




 (2) During the fourth quarter 2025, Orchards Inn Sedona and L'Auberge de Sedona were combined and operate as one hotel. Amounts presented have been
          adjusted to reflect the combination.




 Hotel Adjusted EBITDA Reconciliation - Fourth Quarter 2024


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


                                                  Total Revenues    Depreciation              Interest Expense                           Adjustments (1)                Adjusted EBITDA



 AC Hotel Minneapolis Downtown                             $805             $(167)                        $198
          $                           -
     $                    -               $31



 Atlanta Marriott Alpharetta                             $4,404             $1,221                         $369
          $                           -
     $                    -            $1,590



 Bourbon Orleans Hotel                                   $4,888               $934                       $1,063
          $                           -                             $3             $2,000



 Cavallo Point, The Lodge at the Golden Gate            $12,055               $290                       $1,457
          $                           -                            $94             $1,841



 Chicago Marriott Downtown Magnificent Mile             $31,913             $4,749                       $3,251                                          $6                          $(397)            $7,609



 Chico Hot Springs Resort & Day Spa                      $3,277             $(280)                        $425
          $                           -
     $                    -              $145



 Courtyard Denver Downtown                               $2,439               $416                         $379
          $                           -
     $                    -              $795



 Courtyard New York Manhattan/Fifth Avenue               $6,449             $1,524                         $343                                        $311                             $88             $2,266



 Courtyard New York Manhattan/Midtown East              $12,779             $4,747                         $533
          $                           -
     $                    -            $5,280



 Embassy Suites by Hilton Bethesda                       $3,233           $(1,654)                        $577
          $                           -                         $1,449               $372



 Havana Cabana Key West                                  $2,756               $138                         $308
          $                           -
     $                    -              $446



 Henderson Beach Resort                                  $6,376             $(875)                      $1,106
          $                           -
     $                    -              $231



 Henderson Park Inn                                      $1,489               $167                         $278
          $                           -
     $                    -              $445



 Hilton Garden Inn New York/Times Square Central        $10,174             $3,411                         $664
          $                           -
     $                    -            $4,075



 Hotel Champlain Burlington                              $5,988               $791                         $781
          $                           -
     $                    -            $1,572



 Hotel Clio                                              $7,332               $170                         $858                                        $616                              $5             $1,649



 Hotel Emblem San Francisco                                $975             $(464)                        $294
          $                           -
     $                    -            $(170)



 Kimpton Hotel Palomar Phoenix                           $6,250               $910                         $507
          $                           -                           $193             $1,610



 Kimpton Shorebreak Fort Lauderdale Beach Resort         $2,459             $(143)                        $368
          $                           -
     $                    -              $225



 Kimpton Shorebreak Huntington Beach Resort              $4,409               $712                         $348
          $                           -
     $                    -            $1,060



 L'Auberge de Sedona (2)                                $11,267             $3,483                         $504
          $                           -                            $42             $4,029



 Lake Austin Spa Resort                                  $4,688               $474                         $719
          $                           -
     $                    -            $1,193



 Margaritaville Beach House Key West                     $6,869             $1,443                         $769
          $                           -
     $                    -            $2,212



 Salt Lake City Marriott Downtown at City Creek          $8,534             $1,978                       $1,023
          $                           -                            $11             $3,012



 The Dagny Boston                                        $9,858             $2,627                       $1,545
          $                           -
     $                    -            $4,172



 The Gwen                                                $9,769               $642                         $746
          $                           -
     $                    -            $1,388



 The Hythe Vail                                          $9,971             $1,448                       $1,166
          $                           -
     $                    -            $2,614



 The Landing Lake Tahoe Resort & Spa                     $2,476                $67                         $247
          $                           -
     $                    -              $314



 The Lindy Renaissance Charleston Hotel                  $5,821             $2,321                         $363
          $                           -
     $                    -            $2,684



 The Lodge at Sonoma Resort                              $7,484             $1,337                         $494
          $                           -
     $                    -            $1,831



 Tranquility Bay Beachfront Resort                       $4,377               $620                         $463
          $                           -
     $                    -            $1,083



 Westin Boston Seaport District                         $23,574             $2,718                       $2,439                                      $1,935                          $(122)            $6,970



 Westin Fort Lauderdale Beach Resort                    $15,396             $1,771                       $1,087
          $                           -
     $                    -            $2,858



 Westin San Diego Bayview                                $8,646               $726                       $1,356
          $                           -
     $                    -            $2,082



 Westin Washington D.C. City Center                      $7,691               $998                       $1,041
          $                           -
     $                    -            $2,039



 Worthington Renaissance Fort Worth Hotel               $12,180             $2,227                         $977                                        $696
     $                    -            $3,900




            Total                                    $279,051            $41,477                      $29,046                                      $3,564                          $1,366            $75,453



 Add: Prior Ownership Results (3)                        $1,423               $359                         $126
          $                           -
     $                    -              $485



 Less: Sold Hotel (4)                                  $(7,691)            $(998)                    $(1,041)
          $                           -
     $                    -          $(2,039)




            Comparable Total                         $272,783            $40,838                      $28,131                                      $3,564                          $1,366            $73,899






 (1)   Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash
              amortization of intangible assets and liabilities.




  (2)   During the fourth quarter 2025, Orchards Inn Sedona and L'Auberge de Sedona were combined and operate as one hotel. Amounts presented have been
              adjusted to reflect the combination.




 (3)
 Represents the pre-acquisition operating results of the AC Minneapolis Downtown acquired in 2024.




 (4)
 Represents the operating results of the Westin Washington D.C. City Center sold in 2025.




         Hotel Adjusted EBITDA Reconciliation - Year to Date 2025


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





 AC Hotel Minneapolis Downtown                           $9,764             $1,295                                $1,194
          $                          -
     $                            -                         $2,489



 Atlanta Marriott Alpharetta                            $18,227             $5,476                                $1,529
          $                          -
     $                            -                         $7,005



 Bourbon Orleans Hotel                                  $17,130             $1,965                                $4,499
          $                          -                                    $12                          $6,476



 Cavallo Point, The Lodge at the Golden Gate            $48,052             $5,934                                $5,913
          $                          -                                   $375                         $12,222



 Chicago Marriott Downtown Magnificent Mile            $121,114            $19,280                               $12,340                                        $25                                $(1,589)                        $30,056



 Chico Hot Springs Resort & Day Spa                     $15,198             $1,091                                $1,812
          $                          -                                   $(3)                         $2,900



 Courtyard Denver Downtown                              $12,171             $3,477                                $1,569
          $                          -
     $                            -                         $5,046



 Courtyard New York Manhattan/Fifth Avenue              $22,380             $3,063                                $1,373                                     $1,132                                    $837                          $6,405



 Courtyard New York Manhattan/Midtown East              $39,110            $10,965                                $2,152
          $                          -
     $                            -                        $13,117



 Embassy Suites by Hilton Bethesda                      $12,734           $(6,320)                               $1,975
          $                          -                                 $5,758                          $1,413



 Havana Cabana Key West                                  $9,585               $796                                $1,031
          $                          -
     $                            -                         $1,827



 Henderson Beach Resort                                 $42,578             $5,838                                $4,470
          $                          -
     $                            -                        $10,308



 Henderson Park Inn                                      $8,890             $2,858                                $1,105
          $                          -
     $                            -                         $3,963



 Hilton Garden Inn New York/Times Square Central        $30,749             $5,828                                $3,003
          $                          -
     $                            -                         $8,831



 Hotel Champlain Burlington                             $21,595             $1,482                                $3,166
          $                          -
     $                            -                         $4,648



 Hotel Clio                                             $30,500             $3,348                                $3,399                                     $1,242                                     $19                          $8,008



 Hotel Emblem San Francisco                              $5,400             $(966)                               $1,170
          $                          -
     $                            -                           $204



 Kimpton Hotel Palomar Phoenix                          $24,257             $2,427                                $2,315
          $                          -                                   $762                          $5,504



 Kimpton Shorebreak Fort Lauderdale Beach Resort        $10,059             $(246)                               $1,482
          $                          -
     $                            -                         $1,236



 Kimpton Shorebreak Huntington Beach Resort             $20,778             $5,015                                $1,370
          $                          -
     $                            -                         $6,385



 L'Auberge de Sedona (2)                                $38,892             $7,310                                $3,454
          $                          -                                   $168                         $10,932



 Lake Austin Spa Resort                                 $19,430             $2,479                                $2,877
          $                          -
     $                            -                         $5,356



 Margaritaville Beach House Key West                    $28,855             $8,507                                $3,041
          $                          -
     $                            -                        $11,548



 Salt Lake City Marriott Downtown at City Creek         $36,047             $9,058                                $4,232
          $                          -                                    $42                         $13,332



 The Dagny Boston                                       $41,341             $9,200                                $6,301
          $                          -
     $                            -                        $15,501



 The Gwen                                               $39,908             $4,717                                $3,039
          $                          -
     $                            -                         $7,756



 The Hythe Vail                                         $48,885            $13,438                                $4,037
          $                          -
     $                            -                        $17,475



 The Landing Lake Tahoe Resort & Spa                    $14,025             $3,178                                $1,278
          $                          -
     $                            -                         $4,456



 The Lindy Renaissance Charleston Hotel                 $24,060             $9,467                                $1,478
          $                          -
     $                            -                        $10,945



 The Lodge at Sonoma Resort                             $31,550             $7,487                                $1,945
          $                          -
     $                            -                         $9,432



 Tranquility Bay Beachfront Resort                      $20,290             $4,248                                $1,878
          $                          -
     $                            -                         $6,126



 Westin Boston Seaport District                        $100,644            $10,737                                $9,200                                     $5,188                                  $(490)                        $24,635



 Westin Fort Lauderdale Beach Resort                    $64,785            $12,106                                $4,253
          $                          -
     $                            -                        $16,359



 Westin San Diego Bayview                               $38,509             $4,636                                $5,411
          $                          -
     $                            -                        $10,047



 Westin Washington D.C. City Center                      $3,077               $330
     $                           -
          $                          -
     $                            -                           $330



 Worthington Renaissance Fort Worth Hotel               $49,922             $9,834                                $3,816                                       $940
     $                            -                        $14,590




            Total                                  $1,120,491           $189,338                              $113,107                                     $8,527                                  $5,891                        $316,828



 Less: Sold Hotel (3)                                  $(3,077)            $(330)
     $                           -
          $                          -
     $                            -                         $(330)




            Comparable Total                       $1,117,414           $189,008                              $113,107                                     $8,527                                  $5,891                        $316,498






 (1)   Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash
            amortization of intangible assets and liabilities.




 (2)   During the fourth quarter 2025, Orchards Inn Sedona and L'Auberge de Sedona were combined and operate as one hotel. Amounts presented have been
            adjusted to reflect the combination.




 (3)
 Represents the operating results of the Westin Washington D.C. City Center sold in 2025.




 Hotel Adjusted EBITDA Reconciliation - Year to Date 2024


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


                                                  Total Revenues    Depreciation             Interest Expense                           Adjustments (1)                Adjusted EBITDA



 AC Hotel Minneapolis Downtown                             $805             $(167)                       $198
          $                           -
     $                    -               $31



 Atlanta Marriott Alpharetta                            $17,239             $4,738                      $1,474
          $                           -
     $                    -            $6,212



 Bourbon Orleans Hotel                                  $17,507             $2,484                      $3,757
          $                           -                          $(20)            $6,221



 Cavallo Point, The Lodge at the Golden Gate            $47,278             $4,573                      $5,781
          $                           -                           $375            $10,729



 Chicago Marriott Downtown Magnificent Mile            $119,101            $20,068                     $12,935                                         $24                        $(1,588)           $31,439



 Chico Hot Springs Resort & Day Spa                     $14,924               $340                      $1,626
          $                           -                             $4             $1,970



 Courtyard Denver Downtown                              $11,346             $3,003                      $1,464
          $                           -
     $                    -            $4,467



 Courtyard New York Manhattan/Fifth Avenue              $19,840             $1,285                      $1,383                                        $311                            $848             $3,827



 Courtyard New York Manhattan/Midtown East              $40,157             $9,377                      $2,087                                      $2,086
     $                    -           $13,550



 Embassy Suites by Hilton Bethesda                      $13,936           $(6,022)                     $2,366
          $                           -                         $5,817             $2,161



 Havana Cabana Key West                                 $12,065             $1,744                      $1,373
          $                           -
     $                    -            $3,117



 Henderson Beach Resort                                 $39,515             $3,821                      $4,355
          $                           -
     $                    -            $8,176



 Henderson Park Inn                                      $8,158             $2,196                      $1,096
          $                           -
     $                    -            $3,292



 Hilton Garden Inn New York/Times Square Central        $29,802             $5,712                      $2,617
          $                           -
     $                    -            $8,329



 Hotel Champlain Burlington                             $22,829             $3,024                      $2,756
          $                           -
     $                    -            $5,780



 Hotel Clio                                             $29,267             $1,794                      $3,355                                      $2,475                             $19             $7,643



 Hotel Emblem San Francisco                              $5,217           $(1,085)                     $1,204
          $                           -
     $                    -              $119



 Kimpton Hotel Palomar Phoenix                          $24,778             $3,701                      $1,978
          $                           -                           $777             $6,456



 Kimpton Shorebreak Fort Lauderdale Beach Resort         $9,565             $(719)                     $1,442
          $                           -
     $                    -              $723



 Kimpton Shorebreak Huntington Beach Resort             $21,406             $5,703                      $1,409
          $                           -
     $                    -            $7,112



 L'Auberge de Sedona (2)                                $40,414             $9,833                      $1,890
          $                           -                           $168            $11,891



 Lake Austin Spa Resort                                 $20,109             $2,024                      $2,802
          $                           -
     $                    -            $4,826



 Margaritaville Beach House Key West                    $30,186             $8,830                      $2,833
          $                           -
     $                    -           $11,663



 Salt Lake City Marriott Downtown at City Creek         $33,838             $8,403                      $3,851
          $                           -                            $60            $12,314



 The Dagny Boston                                       $38,901             $7,905                      $6,263
          $                           -
     $                    -           $14,168



 The Gwen                                               $37,845             $4,364                      $3,221
          $                           -
     $                    -            $7,585



 The Hythe Vail                                         $49,642            $13,781                      $4,686
          $                           -
     $                    -           $18,467



 The Landing Lake Tahoe Resort & Spa                    $13,673             $3,034                        $900
          $                           -
     $                    -            $3,934



 The Lindy Renaissance Charleston Hotel                 $22,974             $8,716                      $1,506
          $                           -
     $                    -           $10,222



 The Lodge at Sonoma Resort                             $29,510             $5,808                      $2,109
          $                           -
     $                    -            $7,917



 Tranquility Bay Beachfront Resort                      $21,527             $4,668                      $1,825
          $                           -
     $                    -            $6,493



 Westin Boston Seaport District                        $101,158            $10,286                      $9,776                                      $7,777                          $(490)           $27,349



 Westin Fort Lauderdale Beach Resort                    $67,634            $12,441                      $4,269
          $                           -
     $                    -           $16,710



 Westin San Diego Bayview                               $35,484             $4,825                      $5,116
          $                           -
     $                    -            $9,941



 Westin Washington D.C. City Center                     $32,521             $3,966                      $4,272
          $                           -
     $                    -            $8,238



 Worthington Renaissance Fort Worth Hotel               $49,732             $9,036                      $3,613                                      $2,796
     $                    -           $15,445




            Total                                  $1,129,883           $183,490                    $113,588                                     $15,469                          $5,970           $318,614



 Add: Prior Ownership Results (3)                        $9,256             $1,683                      $1,096
          $                           -
     $                    -            $2,779



 Less: Sold Hotel (4)                                 $(32,521)          $(3,966)                   $(4,272)
          $                           -
     $                    -          $(8,238)




            Comparable Total                       $1,106,618           $181,207                    $110,412                                     $15,469                          $5,970           $313,155






 (1)   Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash
            amortization of intangible assets and liabilities.




 (2)   During the fourth quarter 2025, Orchards Inn Sedona and L'Auberge de Sedona were combined and operate as one hotel. Amounts presented have been
            adjusted to reflect the combination.




 (3)
 Represents the pre-acquisition operating results of the AC Minneapolis Downtown acquired in 2024.




 (4)
 Represents the operating results of the Westin Washington D.C. City Center sold in 2025.


View original content to download multimedia:https://www.prnewswire.com/news-releases/diamondrock-hospitality-company-reports-fourth-quarter-and-full-year-2025-results-302698908.html

SOURCE DiamondRock Hospitality Company

https://rt.newswire.ca/rt.gif?NewsItemId=PH96836&Transmission_Id=202602261605PR_NEWS_USPR_____PH96836&DateId=20260226

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