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DIAMONDROCK HOSPITALITY COMPANY REPORTS FOURTH QUARTER AND FULL YEAR 2024 RESULTS

1. DRH reported a net loss of $13.7 million in Q4 2024. 2. Comparable revenues increased by 5.7% to $280.5 million in Q4 2024. 3. Completed sale of the Westin Washington D.C. City Center for $92 million. 4. Adjusted FFO per share rose 33.3% to $0.24 for Q4 2024. 5. Plans to invest $85-95 million in capital improvements during 2025.

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Why Neutral?

While the sale of an asset may increase liquidity, the net loss raises concerns. Additionally, improved RevPAR and revenue suggest resilience but don't guarantee price appreciation.

How important is it?

The significant loss and asset sale could deter investors, affecting stock price volatility. However, positive revenue trends and dividends could balance this impact.

Why Short Term?

The immediate impact on stock price could be seen in short-term trading due to loss concerns and dividend adjustments; however, long-term outlook may stabilize as improvements unfold.

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Full Year Results Exceed Guidance Completes Sale of the Westin Washington D.C. City Center Announces $0.08 First Quarter 2025 Dividend , /PRNewswire/ -- DiamondRock Hospitality Company (the "Company") (NYSE: DRH), a lodging real estate investment trust that owns a portfolio of 36 premium hotels and resorts in the United States, today announced results of operations for the quarter and year ended December 31, 2024. Fourth Quarter 2024 Highlights Net Loss: Net loss attributable to common stockholders was $13.7 million, or ($0.07) per diluted share compared to net income attributable to common stockholders of $8.5 million in the fourth quarter of 2023. The net loss attributable to common stockholders includes a $32.6 million impairment loss recorded on the Westin Washington D.C. City City Center. Comparable Revenues: $280.5 million, an increase of 5.7% compared to the fourth quarter of 2023. Comparable RevPAR: $200.46, an increase of 5.4% compared to the fourth quarter of 2023. Comparable Hotel Adjusted EBITDA: $75.9 million, an increase of 16.4% compared to the fourth quarter of 2023. Comparable Hotel Adjusted EBITDA Margin: 27.08%, an increase of 253 basis points compared to the fourth quarter of 2023. Adjusted EBITDA: $68.7 million, an increase of 19.9% compared to the fourth quarter of 2023. Adjusted FFO per Share: $0.24, an increase of 33.3% compared to the fourth quarter of 2023. Hotel Acquisition: Acquired the AC Hotel Minneapolis Downtown for $30.0 million on November 12, 2024. Full Year 2024 Highlights Net Income: Net income attributable to common stockholders was $38.2 million, or $0.18 per diluted share as compared to $76.5 million in 2023. Net income attributable to common stockholders includes a $32.6 million impairment loss recorded on the Westin Washington D.C. City Center and $20.4 million of severance costs related to the executive transition in 2024. Comparable Revenues: $1.1 billion, an increase of 4.3% compared to 2023. Comparable RevPAR: $205.15, an increase of 2.6% compared to 2023. Comparable Hotel Adjusted EBITDA: $321.4 million, an increase of 5.3% compared to 2023. Comparable Hotel Adjusted EBITDA Margin: 28.21%, an increase of 27 basis points compared to 2023. Adjusted EBITDA: $290.4 million, an increase of 6.9% compared to 2023. Adjusted FFO per Share: $1.01, an increase of 8.6% to 2023. Brand Conversion: The Company completed the repositioning and rebranding of the Hilton Burlington Lake Champlain as the Hotel Champlain Burlington, Curio Collection by Hilton in July 2024. Debt Financing: The Company repaid its $73.3 million mortgage loan secured by the Courtyard New York Manhattan/Midtown East and extended the maturity date of its $300 million unsecured term loan by one year to January 2026. Share Repurchases: The Company repurchased 3.1 million shares of its common stock at a weighted average price of $8.33 per share for a total consideration of approximately $26.0 million during 2024. Recent Development Hotel Disposition: The Company completed the sale of the Westin Washington D.C. City Center for a contract price of $92.0 million on February 19, 2025. "Fourth quarter operating results exceeded our expectations, with group revenues increasing over 8% compared to last year and business transient revenues increasing over 5% to last year. This strong revenue growth coupled with cost savings initiatives led to fourth quarter results exceeding our guidance range. We expect continued growth from our urban hotels in 2025 and the completed rebrandings of Hotel Champlain and The Dagny, as well as the renovations at Bourbon Orleans and Westin San Diego, are expected to drive additional growth. Our resort hotels are focused on driving incremental group demand and increasing operating efficiencies in the face of continued softness from the leisure customer. In total, we expect to see steadily improving growth as we move throughout the year. The sale of the Westin Washington D.C. marks an important step in our strategy to harvest capital from low free cash flow growth assets and redeploy proceeds into higher return on investment opportunities to drive sustained earnings per share growth for our shareholders." - Jeffrey J. Donnelly, Chief Executive Officer of DiamondRock Hospitality Company Operating Results Please see "Non-GAAP Financial Measures" attached to this press release for an explanation of the terms "EBITDAre," "Adjusted EBITDA," "Hotel Adjusted EBITDA," "Hotel Adjusted EBITDA Margin," "FFO" and "Adjusted FFO" and a reconciliation of these measures to net income. Comparable operating results include all hotels owned as of December 31, 2024 for all periods presented. See "Reconciliation of Comparable Operating Results" attached to this press release for a reconciliation to historical amounts. Three Months Ended December 31, Year Ended December 31, 2024 2023 Change 2024 2023 Change ($ amounts in millions, except hotel statistics and per share amounts) Comparable Operating Results (1) ADR $          290.02 $          280.55 3.4 % $          282.70 $          279.08 1.3 % Occupancy 69.1 % 67.8 % 1.3 % 72.6 % 71.6 % 1.0 % RevPAR $          200.46 $          190.18 5.4 % $          205.15 $          199.89 2.6 % Total RevPAR $          304.86 $          288.88 5.5 % $          311.24 $          299.96 3.8 % Room Revenues $            184.4 $            174.7 5.6 % $            750.8 $            728.0 3.1 % Total Revenues $            280.5 $            265.4 5.7 % $         1,139.1 $         1,092.5 4.3 % Hotel Adjusted EBITDA $              75.9 $              65.2 16.4 % $            321.4 $            305.2 5.3 % Hotel Adjusted EBITDA Margin 27.08 % 24.55 % 253 bps 28.21 % 27.94 % 27 bps Available Rooms 920,000 918,800 1,200 3,660,001 3,641,984 18,017 Actual Operating Results (2) Total Revenues $            279.1 $            263.5 5.9 % $         1,129.9 $         1,074.9 5.1 % Net (loss) / income attributable to common stockholders $            (13.7) $                8.5 (261.2) % $              38.2 $              76.5 (50.1) % (Loss) / Earnings per diluted share $            (0.07) $              0.04 (275.0) % $              0.18 $              0.36 (50.0) % Adjusted EBITDA $              68.7 $              57.3 19.9 % $            290.4 $            271.7 6.9 % Adjusted FFO $              49.4 $              38.6 28.0 % $            213.7 $            198.5 7.7 % Adjusted FFO per diluted share $              0.24 $              0.18 33.3 % $              1.01 $              0.93 8.6 % (1) Amounts represent the pre-acquisition operating results for AC Hotel Minneapolis Downtown from January 1, 2023 to November 11, 2024 and Chico Hot Springs Resort from January 1, 2023 to July 31, 2023. 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 of all hotels for the Company's respective ownership periods. 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 sales price represents 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 represents 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. Capital Expenditures The Company invested approximately $81.6 million in capital improvements at its hotels during the year ended December 31, 2024. Significant projects in 2024 included the following: Hotel Champlain Burlington: The Company completed the rebranding and repositioning of the Hilton Burlington Lake Champlain to Hotel Champlain Burlington, a Curio Collection by Hilton in July 2024. The transformation of the 258-room hotel represents a strong return-on-investment opportunity and included the creation of new lifestyle community spaces, a new all-day cafe, an upgraded state-of-the-art fitness center, and a new signature seafood restaurant, Original Skiff Fish & Oysters, in partnership with a local award-winning chef. Westin San Diego Bayview: The Company completed a comprehensive renovation of the hotel's guestrooms during the second quarter of 2024. Bourbon Orleans Hotel: The Company completed a comprehensive renovation of the hotel's guestrooms during the third quarter of 2024. The Company expects to invest approximately $85 to $95 million in capital improvements at its hotels in 2025. Significant projects in 2025 include the following: Orchards Inn Sedona: The Company commenced the repositioning of Orchards Inn as the Cliffs at L'Auberge on November 1, 2024. The repositioning will integrate the hotel with the adjacent L'Auberge de Sedona and includes construction of a new pool connecting the two properties, renovation of the guestrooms and creation of a new arrival experience and new outdoor event space. The Company expects to complete the project in the third quarter of 2025. Hilton Garden Inn New York / Times Square Central: The Company expects to complete a renovation of the hotel's guestrooms during the first quarter of 2025. Kimpton Hotel Palomar Phoenix: The Company expects to commence a renovation of the hotel's guestrooms during the second quarter of 2025. Courtyard New York Manhattan/Midtown East: The Company expects to commence a renovation of the hotel's guestrooms during the fourth quarter of 2025. Balance Sheet and Liquidity As of December 31, 2024, the Company had total debt outstanding of $1.1 billion, consisting of $800.0 million of unsecured term loans and $295.8 million of three property-specific mortgage loans, with a weighted average interest rate of 5.21%.  During the third quarter of 2024, the Company repaid the $73.3 million mortgage loan secured by the Courtyard New York Manhattan/Midtown East with cash on hand and exercised its right to extend the maturity date of its $300.0 million unsecured term loan for one year to January 3, 2026.  The Company is actively pursuing a financing transaction, the proceeds of which will be used to repay its three outstanding mortgage loans that each mature during 2025. In the event that the Company is unsuccessful in obtaining this new financing, it may use a combination of cash on hand and its senior unsecured revolving credit facility to address the maturities. The Company ended the year with $584.3 million of liquidity, comprised of $81.4 million of unrestricted corporate cash, $102.9 million of unrestricted cash at its hotels and full availability of its revolving credit facility. Share Repurchase Program During the year ended December 31, 2024, the Company repurchased 3.1 million shares of its common stock at an average price of $8.33 per share for a total purchase price of $26.0 million. The Company currently has $174.0 million of remaining capacity under its $200.0 million share repurchase program. Dividends The Company paid a fourth quarter cash dividend of $0.23 per common share, which included a regular quarterly dividend of $0.03 per common share, along with a stub dividend of $0.20 per common share, on January 14, 2025 to shareholders of record as of December 31, 2024.  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, 2024 to shareholders of record as of December 20, 2024. On February 25, 2025, the Company's Board of Directors declared a regular quarterly cash dividend of $0.08 per share on its common stock.  The dividend will be paid on April 11, 2025 to shareholders of record as of March 28, 2025. The Company's Board of Directors also declared a quarterly dividend of $0.515625 per share on its 8.250% Series A Cumulative Redeemable Preferred Stock. The dividend is payable on March 28, 2025 to shareholders of record as of March 20, 2025. Guidance The Company is providing annual guidance for 2025. The outlook is based on the current economic and operating environment for its current portfolio of hotels and does not take into account any unanticipated impacts to it the business or operations.  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. Metric Low End High End Comparable RevPAR Growth 1.0 % 3.0 % Adjusted EBITDA $275 million $300 million Adjusted FFO $199 million $224 million Adjusted FFO per share $0.94 per share $1.06 per share Effective January 1, 2025, the Company will exclude share-based compensation from its calculations of Adjusted EBITDA and Adjusted FFO in order to provide comparability with its peers. This change has been incorporated in the above guidance ranges for Adjusted EBITDA and Adjusted FFO. Share-based compensation was $7.4 million for full year 2024. Full year 2025 guidance is based in part on the following assumptions: Full year corporate expenses, excluding share-based compensation, of approximately $24 million to $25 million; Full year cash interest expense of approximately $64 million to $65 million; Full year income tax expense of approximately $1 million to $2 million; Fully diluted weighted average common shares and units of 211 million; and 3,502,540 full year available rooms. Earnings Call The Company will host a conference call to discuss its fourth quarter and full year results on Friday, February 28, 2025, at 10:00 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 36 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; national and local economic and business conditions, including the potential for additional terrorist attacks, that will affect occupancy rates at the Company's hotels and the demand for hotel products and services; operating risks associated with the hotel business; relationships with property managers; the ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; changes in travel patterns, taxes and government regulations which influence or determine wages, prices, construction procedures and costs; and other risk factors contained in the Company's filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of the date of this release, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations. DIAMONDROCK HOSPITALITY COMPANY  CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) December 31, 2024 December 31, 2023 ASSETS (unaudited) Property and equipment, net $                  2,631,221 $                 2,755,195 Assets held for sale 93,400 — Right-of-use assets 89,931 97,692 Restricted cash 47,408 45,576 Due from hotel managers 145,947 144,689 Prepaid and other assets 82,963 73,940 Cash and cash equivalents 81,381 121,595 Total assets $                  3,172,251 $                 3,238,687 LIABILITIES AND EQUITY Liabilities: Debt, net of unamortized debt issuance costs 1,095,294 1,177,005 Lease liabilities 85,235 112,866 Due to hotel managers 121,734 116,522 Liabilities of assets held for sale 3,352 — Deferred rent 73,535 69,209 Unfavorable contract liabilities, net 58,208 59,866 Accounts payable and accrued expenses 79,201 39,563 Distributions declared and unpaid 49,034 6,324 Deferred income related to key money, net 7,726 8,349 Total liabilities 1,573,319 1,589,704 Equity: Preferred stock, $0.01 par value; 10,000,000 shares authorized;     8.250% Series A Cumulative Redeemable Preferred Stock (liquidation  preference $25.00 per share), 4,760,000 shares issued and outstanding at   December 31, 2024 and 2023 48 48    Common stock, $0.01 par value; 400,000,000 shares authorized; 207,592,210   and 209,627,197 shares issued and outstanding at December 31, 2024 and   December 31, 2023, respectively 2,076 2,096 Additional paid-in capital 2,268,521 2,291,297 Accumulated other comprehensive loss (1,360) (2,036) Distributions in excess of earnings (679,050) (649,330) Total stockholders' equity 1,590,235 1,642,075 Noncontrolling interests 8,697 6,908 Total equity 1,598,932 1,648,983 Total liabilities and equity $                  3,172,251 $                 3,238,687 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, 2024 2023 2024 2023 Revenues: Rooms $                183,161 $               173,122 $               742,626 $              717,447 Food and beverage 69,403 66,888 281,682 259,757 Other 26,487 23,537 105,575 97,663 Total revenues 279,051 263,547 1,129,883 1,074,867 Operating Expenses: Rooms 46,659 45,673 186,131 176,765 Food and beverage 48,056 46,060 193,331 180,546 Other departmental and support expenses 68,789 68,171 268,563 261,536 Management fees 6,738 5,802 27,149 24,998 Franchise fees 10,014 9,345 39,724 35,738 Other property-level expenses 24,789 25,422 103,347 102,177 Depreciation and amortization 29,046 28,307 113,588 111,302 Impairment losses 32,573 — 34,169 941 Corporate expenses 7,828 8,371 52,911 32,048 Business interruption insurance income — — — (647) Total operating expenses, net 274,492 237,151 1,018,913 925,404 Interest expense 16,082 16,360 65,516 65,072 Interest (income) and other (income) expense, net (1,072) (844) (4,337) (2,561)   Total other expenses, net 15,010 15,516 61,179 62,511 (Loss) / Income before income taxes (10,451) 10,880 49,791 86,952 Income tax (expense) / benefit (845) 103 (1,541) (317) Net (loss) / income (11,296) 10,983 48,250 86,635 Less:  Net loss / (income) attributable tononcontrolling interests 53 (36) (203) (295) Net (loss) / income attributable to the Company (11,243) 10,947 48,047 86,340 Distributions to preferred stockholders (2,454) (2,454) (9,817) (9,817) Net (loss) / income attributable to common stockholders $                (13,697) $                   8,493 $                 38,230 $                76,523 (Loss) / Earnings per share: (Loss) / Earnings per share available tocommon stockholders - basic $                     (0.07) $                     0.04 $                     0.18 $                    0.36 (Loss) / Earnings per share available tocommon stockholders - diluted $                     (0.07) $                     0.04 $                     0.18 $                    0.36 Weighted-average number of commonshares outstanding: Basic 208,965,671 211,498,736 210,286,342 211,518,826 Diluted 208,965,671 212,578,308 211,240,170 212,304,117 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. 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 and Adjusted FFO, as calculated by us, may not be comparable to other companies that do not define such terms exactly as the Company. Use and Limitations of Non-GAAP Financial Measures Our management and Board of Directors use EBITDA, EBITDAre, Adjusted EBITDA, Hotel Adjusted EBITDA, FFO and Adjusted FFO to evaluate the performance of our hotels and to facilitate comparisons between us and other lodging REITs, hotel owners who are not REITs and other capital intensive companies. The use of these non-GAAP financial measures has certain limitations. These non-GAAP financial measures as presented by us, may not be comparable to non-GAAP financial measures as calculated by other real estate companies. These measures do not reflect certain expenses or expenditures that we incurred and will incur, such as depreciation, interest and capital expenditures. We compensate for these limitations by separately considering the impact of these excluded items to the extent they are material to operating decisions or assessments of our operating performance. Our reconciliations to the most comparable U.S. GAAP financial measures, and our consolidated statements of operations and 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 EBITDAre 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 Early Extinguishment of Debt: We exclude the effect of gains or losses recorded on the early extinguishment of debt because these gains or losses result from transaction activity related to the Company's capital structure that we believe are not indicative of the ongoing operating performance of the Company or our hotels. Hotel Acquisition Costs: We exclude hotel acquisition costs expensed during the period because we believe these transaction costs are not reflective of the ongoing performance of the Company or our hotels. Severance Costs: We exclude corporate severance costs, or reversals thereof, incurred with the termination of corporate-level employees and severance costs incurred at our hotels related to lease terminations or structured severance programs because we believe these costs do not reflect the ongoing performance of the Company or our hotels. Hotel Manager Transition 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: Effective January 1, 2025, we will 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, ensuring consistency in our financial reporting and covenant compliance. 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: lease preparation costs incurred to prepare vacant space for marketing; management or franchise contract termination fees; gains or losses from legal settlements; costs incurred related to natural disasters; and gains on property insurance claim settlements, other than income related to business interruption insurance. In addition, to derive Adjusted FFO, we exclude any 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.          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,           2024 2023 2024 2023 Net income $                 (11,296) $                10,983 $                48,250 $                86,635 Interest expense 16,082 16,360 65,516 65,072 Income tax expense / (benefit) 845 (103) 1,541 317 Real estate related depreciation and amortization 29,046 28,307 113,588 111,302 EBITDA 34,677 55,547 228,895 263,326 Impairment losses 32,573 — 34,169 941 EBITDAre 67,250 55,547 263,064 264,267 Non-cash lease expense and other amortization 1,366 1,536 5,970 6,156 Severance costs — — 20,362 — Hotel pre-opening costs 81 208 1,006 1,246 Adjusted EBITDA 68,697 57,291 290,402 271,669 Corporate expenses 7,828 8,371 32,549 32,048 Interest (income) and other (income) expense, net (1,072) (844) (4,337) (2,561) Hotel Adjusted EBITDA $                  75,453 $                64,818 $              318,614 $              301,156 Full Year 2025 Guidance Low End High End Net income $                     79,117 $                   105,117 Interest expense 65,000 64,000 Income tax expense 1,183 2,183 Real estate related depreciation and amortization 116,000 115,000 EBITDA/EBITDAre 261,300 286,300 Non-cash lease expense and other amortization 6,200 6,200 Share-based compensation expense 7,000 7,000 Hotel pre-opening costs 500 500 Adjusted EBITDA $                   275,000 $                   300,000 FFO and Adjusted FFO The following tables are reconciliations of our GAAP net income to FFO and Adjusted FFO (in thousands):  Three Months Ended December 31, Year Ended December 31,           2024 2023 2024 2023 Net income $                (11,296) $                10,983 $                48,250 $                86,635 Real estate related depreciation and amortization 29,046 28,307 113,588 111,302 Impairment losses 32,573 — 34,169 941 FFO 50,323 39,290 196,007 198,878 Distribution to preferred stockholders (2,454) (2,454) (9,817) (9,817) FFO available to common stock and unit holders 47,869 36,836 186,190 189,061 Non-cash lease expense and other amortization 1,488 1,536 6,092 6,156 Severance costs — — 20,362 — Hotel pre-opening costs 81 208 1,006 1,246 Fair value adjustments to interest rate swaps — — — 2,033 Adjusted FFO available to common stock and unit holders $                 49,438 $                38,580 $              213,650 $              198,496 Adjusted FFO available to common stock and unit holders, per diluted share $                      0.24 $                    0.18 $                    1.01 $                    0.93 Diluted Weighted Average Shares and Units 209,960 213,301 212,141 213,035 Full Year 2025 Guidance Low End High End Net income $                     79,117 $                   105,117 Real estate related depreciation and amortization 116,000 115,000 FFO 195,117 220,117 Distribution to preferred stockholders (9,817) (9,817) FFO available to common stock and unit holders 185,300 210,300 Non-cash lease expense and other amortization 6,200 6,200 Share-based compensation expense 7,000 7,000 Hotel pre-opening costs 500 500 Adjusted FFO available to common stock and unit holders $                   199,000 $                   224,000 Adjusted FFO available to common stock and unit holders, per diluted share $                          0.94 $                          1.06 Diluted Weighted Average Shares and Units 211,000 211,000 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, 2024 2023 2024 2023 Revenues $          279,051 $          263,547 $       1,129,883 $      1,074,867 Hotel revenues from prior ownership (1) 1,423 1,881 9,257 17,585 Comparable Revenues $          280,474 $          265,428 $       1,139,140 $      1,092,452 Hotel Adjusted EBITDA $            75,453 $            64,818 $          318,614 $          301,156 Hotel Adjusted EBITDA from prior ownership (1) 487 353 2,781 4,068 Comparable Hotel Adjusted EBITDA $            75,940 $            65,171 $          321,395 $          305,224 Hotel Adjusted EBITDA Margin 27.04 % 24.59 % 28.20 % 28.02 % Comparable Hotel Adjusted EBITDA Margin 27.08 % 24.55 % 28.21 % 27.94 % (1) Amounts represent the pre-acquisition operating results for AC Hotel Minneapolis Downtown from January 1, 2023 to November 11, 2024 and Chico Hot Springs Resort from January 1, 2023 to July 31, 2023.  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. Selected Quarterly Comparable Operating Information The following table is presented to provide investors with selected quarterly comparable operating information for the Company's current portfolio of 36 hotels. Quarter 1, 2024 Quarter 2, 2024 Quarter 3, 2024 Quarter 4, 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 Market Capitalization as of December 31, 2024 (in thousands) Enterprise Value Common equity capitalization (at December 31, 2024 closing price of $9.03/share) $              1,902,473 Preferred equity capitalization (at liquidation value of $25.00/share) 119,000 Consolidated debt (face amount) 1,095,808 Cash and cash equivalents (81,381) Total enterprise value $              3,035,900 Share Reconciliation Common shares outstanding 207,592 Operating partnership units 1,135 Unvested restricted stock held by management and employees 622 Share grants under deferred compensation plan 1,335 Combined shares and units 210,684 Debt Summary as of December 31, 2024 (dollars in thousands) Loan Interest Rate Term OutstandingPrincipal Maturity Worthington Renaissance Fort Worth Hotel 3.66 % Fixed 71,766 May 2025 Hotel Clio 4.33 % Fixed 54,657 July 2025 Westin Boston Seaport District 4.36 % Fixed 169,385 November 2025 Unsecured term loan SOFR + 1.35% (1) Variable 500,000 January 2028 Unsecured term loan SOFR + 1.35% (2) Variable 300,000 January 2026 (3) Senior unsecured credit facility SOFR + 1.40% Variable — September 2026 (4) Total debt 1,095,808      Unamortized debt issuance costs (5) (514) Debt, net of unamortized debt issuance costs $    1,095,294 Weighted-average interest rate of fixed rate debt 4.48 % Total weighted-average interest rate (6) 5.21 % (1) Interest rate as of December 31, 2024 was 5.38%, which includes the effect of interest rate swaps. (2) Interest rate as of December 31, 2024 was 5.79%. (3) In September 2024, we exercised our option to extend the maturity by an additional year to January 2026. (4) Maturity date may be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions. (5) 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. (6) Weighted-average interest rate includes the effect of interest rate swaps. Operating Statistics – Fourth Quarter Numberof Rooms ADR Occupancy RevPAR 4Q 2024 4Q 2023 B/(W) 2023 4Q 2024 4Q 2023 B/(W) 2023 4Q 2024 4Q 2023 B/(W) 2023 AC Hotel Minneapolis Downtown (1) 245 $         136.45 $         134.51 1.4 % 39.4 % 35.2 % 4.2 % $          53.73 $          47.37 13.4 % Atlanta Marriott Alpharetta 318 $         158.90 $         159.19 (0.2) % 63.1 % 57.4 % 5.7 % $         100.19 $          91.42 9.6 % Bourbon Orleans Hotel 220 $         276.79 $         254.80 8.6 % 67.8 % 71.7 % (3.9) % $         187.68 $         182.57 2.8 % Cavallo Point, The Lodge at the Golden Gate 142 $         562.69 $         595.48 (5.5) % 61.6 % 54.1 % 7.5 % $         346.56 $         322.08 7.6 % Chicago Marriott Downtown Magnificent Mile 1,200 $         271.35 $         248.64 9.1 % 65.9 % 55.9 % 10.0 % $         178.79 $         138.90 28.7 % Chico Hot Springs Resort & Day Spa 117 $         205.51 $         183.22 12.2 % 59.7 % 56.8 % 2.9 % $         122.66 $         104.05 17.9 % Courtyard Denver Downtown 177 $         186.30 $         203.58 (8.5) % 71.1 % 65.8 % 5.3 % $         132.42 $         133.97 (1.2) % Courtyard New York Manhattan/Fifth Avenue 189 $         379.78 $         346.88 9.5 % 96.2 % 95.8 % 0.4 % $         365.21 $         332.38 9.9 % Courtyard New York Manhattan/Midtown East 321 $         459.19 $         424.16 8.3 % 91.4 % 92.0 % (0.6) % $         419.84 $         390.33 7.6 % Embassy Suites by Hilton Bethesda 272 $         174.53 $         164.99 5.8 % 63.6 % 68.6 % (5.0) % $         111.03 $         113.20 (1.9) % Havana Cabana Key West 106 $         254.64 $         285.15 (10.7) % 74.2 % 80.2 % (6.0) % $         188.92 $         228.69 (17.4) % Henderson Beach Resort 269 $         304.09 $         313.74 (3.1) % 35.7 % 37.4 % (1.7) % $         108.65 $         117.44 (7.5) % Henderson Park Inn 37 $         505.27 $         490.86 2.9 % 50.9 % 65.0 % (14.1) % $         257.09 $         318.83 (19.4) % Hilton Garden Inn New York/Times Square Central 282 $         365.01 $         338.43 7.9 % 98.5 % 97.4 % 1.1 % $         359.50 $         329.68 9.0 % Hotel Champlain Burlington 258 $         226.21 $         237.78 (4.9) % 75.6 % 74.1 % 1.5 % $         171.06 $         176.23 (2.9) % Hotel Clio 199 $         283.43 $         294.92 (3.9) % 78.6 % 74.0 % 4.6 % $         222.85 $         218.31 2.1 % Hotel Emblem San Francisco 96 $         157.32 $         198.08 (20.6) % 52.2 % 62.2 % (10.0) % $          82.08 $         123.24 (33.4) % Kimpton Hotel Palomar Phoenix 242 $         216.36 $         222.15 (2.6) % 72.5 % 76.2 % (3.7) % $         156.77 $         169.22 (7.4) % Kimpton Shorebreak Fort Lauderdale Beach Resort 96 $         208.69 $         194.74 7.2 % 71.5 % 72.1 % (0.6) % $         149.24 $         140.34 6.3 % Kimpton Shorebreak Huntington Beach Resort 157 $         261.23 $         278.33 (6.1) % 76.9 % 83.7 % (6.8) % $         200.88 $         232.99 (13.8) % L'Auberge de Sedona 88 $         999.60 $         976.16 2.4 % 71.4 % 71.0 % 0.4 % $         713.65 $         693.17 3.0 % Lake Austin Spa Resort 40 $         984.52 $      1,048.17 (6.1) % 53.6 % 58.3 % (4.7) % $         527.84 $         610.67 (13.6) % Margaritaville Beach House Key West 186 $         379.48 $         380.73 (0.3) % 77.0 % 77.9 % (0.9) % $         292.30 $         296.54 (1.4) % Orchards Inn Sedona 70 $         354.47 $         328.61 7.9 % 30.7 % 61.0 % (30.3) % $         108.87 $         200.43 (45.7) % Salt Lake City Marriott Downtown at City Creek 510 $         190.05 $         174.37 9.0 % 60.7 % 60.6 % 0.1 % $         115.28 $         105.72 9.0 % The Dagny Boston 403 $         286.50 $         243.15 17.8 % 84.1 % 86.2 % (2.1) % $         241.06 $         209.62 15.0 % The Gwen 311 $         299.97 $         291.32 3.0 % 74.1 % 74.3 % (0.2) % $         222.36 $         216.48 2.7 % The Hythe Vail 344 $         452.36 $         443.41 2.0 % 45.8 % 42.4 % 3.4 % $         207.40 $         187.87 10.4 % The Landing Lake Tahoe Resort & Spa 82 $         337.17 $         367.30 (8.2) % 50.4 % 46.7 % 3.7 % $         169.88 $         171.38 (0.9) % The Lindy Renaissance Charleston Hotel 167 $         352.82 $         332.83 6.0 % 87.0 % 87.1 % (0.1) % $         307.03 $         289.77 6.0 % The Lodge at Sonoma Resort 182 $         390.94 $         438.25 (10.8) % 70.2 % 52.9 % 17.3 % $         274.39 $         231.63 18.5 % Tranquility Bay Beachfront Resort 103 $         529.17 $         560.50 (5.6) % 67.0 % 74.0 % (7.0) % $         354.55 $         414.99 (14.6) % Westin Boston Waterfront 793 $         270.24 $         258.04 4.7 % 75.2 % 71.8 % 3.4 % $         203.11 $         185.18 9.7 % Westin Fort Lauderdale Beach Resort 432 $         247.81 $         235.79 5.1 % 74.4 % 76.9 % (2.5) % $         184.40 $         181.42 1.6 % Westin San Diego Bayview 436 $         222.23 $         224.65 (1.1) % 68.1 % 65.0 % 3.1 % $         151.43 $         146.08 3.7 % Westin Washington D.C. City Center 410 $         256.97 $         227.50 13.0 % 60.4 % 64.6 % (4.2) % $         155.17 $         146.92 5.6 % Worthington Renaissance Fort Worth Hotel 504 $         203.43 $         208.37 (2.4) % 69.2 % 69.9 % (0.7) % $         140.86 $         145.65 (3.3) % Comparable Total (2) 10,004 $         290.02 $         280.55 3.4 % 69.1 % 67.8 % 1.3 % $         200.46 $         190.18 5.4 % (1) Hotel was acquired on November 12, 2024.  Amounts reflect the operating results of the period from November 12, 2024 to December 31, 2024 and the comparable period of 2023.  (2) Amounts include the pre-acquisition operating results of the AC Minneapolis Downtown acquired in 2024 and Chico Hot Springs Resort & Day Spa acquired in 2023.  Operating Statistics – Year to Date Numberof Rooms ADR Occupancy RevPAR YTD 2024 YTD 2023 B/(W) 2023 YTD 2024 YTD 2023 B/(W) 2023 YTD 2024 YTD 2023 B/(W) 2023 AC Hotel Minneapolis Downtown (1) 245 $         136.45 $         134.51 1.4 % 39.4 % 35.2 % 4.2 % $          53.73 $          47.37 13.4 % Atlanta Marriott Alpharetta 318 $         157.97 $         155.55 1.6 % 64.4 % 65.7 % (1.3) % $         101.66 $         102.21 (0.5) % Bourbon Orleans Hotel 220 $         249.85 $         241.00 3.7 % 68.5 % 75.6 % (7.1) % $         171.10 $         182.23 (6.1) % Cavallo Point, The Lodge at the Golden Gate 142 $         574.60 $         591.89 (2.9) % 60.3 % 55.4 % 4.9 % $         346.53 $         327.66 5.8 % Chicago Marriott Downtown Magnificent Mile 1,200 $         257.60 $         246.73 4.4 % 63.4 % 59.5 % 3.9 % $         163.27 $         146.76 11.2 % Chico Hot Springs Resort & Day Spa 117 $         205.35 $         177.58 15.6 % 70.4 % 70.7 % (0.3) % $         144.62 $         125.52 15.2 % Courtyard Denver Downtown 177 $         202.95 $         216.78 (6.4) % 77.2 % 75.2 % 2.0 % $         156.69 $         163.04 (3.9) % Courtyard New York Manhattan/Fifth Avenue 189 $         306.10 $         289.73 5.7 % 91.5 % 95.3 % (3.8) % $         280.11 $         276.15 1.4 % Courtyard New York Manhattan/Midtown East 321 $         357.72 $         342.30 4.5 % 92.3 % 90.9 % 1.4 % $         330.11 $         311.13 6.1 % Embassy Suites by Hilton Bethesda 272 $         175.06 $         163.92 6.8 % 69.7 % 71.0 % (1.3) % $         122.07 $         116.45 4.8 % Havana Cabana Key West 106 $         293.52 $         300.60 (2.4) % 77.7 % 83.2 % (5.5) % $         227.99 $         250.01 (8.8) % Henderson Park Resort 269 $         406.38 $         432.60 (6.1) % 53.1 % 55.4 % (2.3) % $         215.61 $         239.49 (10.0) % Henderson Park Inn 37 $         575.56 $         595.38 (3.3) % 65.6 % 68.9 % (3.3) % $         377.33 $         410.13 (8.0) % Hilton Garden Inn New York/Times Square Central 282 $         280.33 $         275.67 1.7 % 92.0 % 91.4 % 0.6 % $         257.81 $         251.93 2.3 % Hotel Champlain Burlington 258 $         235.51 $         248.79 (5.3) % 74.6 % 75.7 % (1.1) % $         175.69 $         188.22 (6.7) % Hotel Clio 199 $         304.46 $         313.75 (3.0) % 77.9 % 71.9 % 6.0 % $         237.26 $         225.52 5.2 % Hotel Emblem San Francisco 96 $         195.52 $         234.34 (16.6) % 59.9 % 65.8 % (5.9) % $         117.20 $         154.14 (24.0) % Kimpton Hotel Palomar Phoenix 242 $         222.82 $         222.03 0.4 % 75.1 % 76.0 % (0.9) % $         167.41 $         168.84 (0.8) % Kimpton Shorebreak Fort Lauderdale Beach Resort 96 $         203.39 $         211.05 (3.6) % 73.7 % 67.7 % 6.0 % $         149.98 $         142.94 4.9 % Kimpton Shorebreak Huntington Beach Resort 157 $         312.59 $         322.69 (3.1) % 82.1 % 81.9 % 0.2 % $         256.56 $         264.35 (2.9) % L'Auberge de Sedona 88 $         886.86 $         926.89 (4.3) % 67.3 % 62.8 % 4.5 % $         597.16 $         581.76 2.6 % Lake Austin Spa Resort 40 $      1,012.08 $      1,065.76 (5.0) % 57.8 % 58.5 % (0.7) % $         585.19 $         623.11 (6.1) % Margaritaville Beach House Key West 186 $         396.94 $         398.18 (0.3) % 82.3 % 82.7 % (0.4) % $         326.63 $         329.19 (0.8) % Orchards Inn Sedona 70 $         293.23 $         293.83 (0.2) % 50.0 % 59.9 % (9.9) % $         146.71 $         176.08 (16.7) % Salt Lake City Marriott Downtown at City Creek 510 $         192.28 $         186.86 2.9 % 66.5 % 62.6 % 3.9 % $         127.86 $         116.96 9.3 % The Dagny Boston 403 $         277.32 $         278.65 (0.5) % 85.5 % 77.8 % 7.7 % $         236.99 $         216.90 9.3 % The Gwen 311 $         296.64 $         297.18 (0.2) % 75.2 % 74.5 % 0.7 % $         222.93 $         221.33 0.7 % The Hythe Vail 344 $         425.03 $         436.67 (2.7) % 59.8 % 56.4 % 3.4 % $         254.21 $         246.16 3.3 % The Landing Lake Tahoe Resort & Spa 82 $         415.66 $         448.48 (7.3) % 60.7 % 51.4 % 9.3 % $         252.27 $         230.43 9.5 % The Lindy Renaissance Charleston Hotel 167 $         344.88 $         347.26 (0.7) % 87.8 % 88.7 % (0.9) % $         302.80 $         307.88 (1.6) % The Lodge at Sonoma Resort 182 $         405.07 $         451.90 (10.4) % 67.3 % 60.2 % 7.1 % $         272.43 $         272.13 0.1 % Tranquility Bay Beachfront Resort  103 $         601.79 $         630.39 (4.5) % 73.7 % 76.8 % (3.1) % $         443.56 $         484.26 (8.4) % Westin Boston Waterfront 793 $         265.23 $         246.93 7.4 % 83.6 % 81.9 % 1.7 % $         221.75 $         202.17 9.7 % Westin Fort Lauderdale Beach Resort 432 $         254.95 $         264.71 (3.7) % 78.1 % 74.2 % 3.9 % $         199.04 $         196.48 1.3 % Westin San Diego Bayview 436 $         229.57 $         217.02 5.8 % 72.0 % 76.1 % (4.1) % $         165.35 $         165.18 0.1 % Westin Washington D.C. City Center 410 $         244.68 $         219.08 11.7 % 69.5 % 73.0 % (3.5) % $         170.10 $         159.99 6.3 % Worthington Renaissance Fort Worth Hotel 504 $         206.33 $         197.52 4.5 % 70.7 % 73.3 % (2.6) % $         145.86 $         144.86 0.7 % Comparable Total (2) 10,004 $         282.70 $         279.08 1.3 % 72.6 % 71.6 % 1.0 % $         205.15 $         199.89 2.6 % (1) Hotel was acquired on November 12, 2024.  Amounts reflect the operating results of the period from November 12, 2024 to December 31, 2024 and the comparable period of 2023.  (2) Amounts include the pre-acquisition operating results of the AC Minneapolis Downtown acquired in 2024 and Chico Hot Springs Resort & Day Spa acquired in 2023.  Hotel Adjusted EBITDA Reconciliation - Fourth Quarter 2024 Net Income /(Loss) Plus: Plus: Plus: Equals: Hotel Adjusted EBITDA Total Revenues Depreciation Interest Expense Adjustments (1) 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 $                   9,624 $                   3,302 $                      408 $                         — $                         — $                   3,710 Lake Austin Spa Resort $                   4,688 $                       474 $                      719 $                         — $                         — $                   1,193 Margaritaville Beach House Key West $                   6,869 $                   1,443 $                      769 $                         — $                         — $                   2,212 Orchards Inn Sedona $                   1,643 $                       181 $                         96 $                         — $                         42 $                       319 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 (2) $                   1,423 $                       361 $                      126 $                         — $                         — $                       487 Comparable Total $               280,474 $                 41,838 $                 29,172 $                   3,564 $                   1,366 $                 75,940 (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) Represents the pre-acquisition operating results of the AC Hotel Minneapolis Downtown acquired in 2024. Hotel Adjusted EBITDA Reconciliation - Fourth Quarter 2023 Net Income / (Loss) Plus: Plus: Plus: Equals: Hotel Total Revenues Depreciation Interest Expense Adjustments (1) Adjusted EBITDA Atlanta Marriott Alpharetta $                   4,012 $                      944 $                      367 $                         — $                         — $                   1,311 Bourbon Orleans Hotel $                   4,630 $                      931 $                      873 $                         — $                           6 $                   1,810 Cavallo Point, The Lodge at the Golden Gate $                 11,228 $                      684 $                   1,411 $                         — $                         94 $                   2,189 Chicago Marriott Downtown Magnificent Mile $                 24,363 $                   1,974 $                   3,515 $                           6 $                    (397) $                   5,098 Chico Hot Springs Resort & Day Spa $                   2,789 $                    (434) $                      434 $                         — $                           3 $                           3 Courtyard Denver Downtown $                   2,481 $                      547 $                      374 $                         — $                         — $                      921 Courtyard New York Manhattan/Fifth Avenue $                   5,865 $                      903 $                      356 $                         — $                      253 $                   1,512 Courtyard New York Manhattan/Midtown East $                 11,883 $                   3,336 $                      504 $                      890 $                         — $                   4,730 Embassy Suites by Hilton Bethesda $                   3,326 $                 (1,775) $                      569 $                         — $                   1,463 $                      257 Havana Cabana Key West $                   3,028 $                      338 $                      306 $                         — $                         — $                      644 Henderson Beach Resort $                   6,862 $                    (807) $                   1,043 $                         — $                         — $                      236 Henderson Park Inn $                   1,679 $                      156 $                      272 $                         — $                         — $                      428 Hilton Garden Inn New York/Times Square Central $                   9,327 $                   2,862 $                      649 $                         — $                         — $                   3,511 Hotel Champlain Burlington $                   5,537 $                      860 $                      596 $                         — $                         — $                   1,456 Hotel Clio $                   7,394 $                      330 $                      845 $                      632 $                           5 $                   1,812 Hotel Emblem San Francisco $                   1,337 $                    (284) $                      295 $                         — $                         — $                         11 Kimpton Hotel Palomar Phoenix $                   7,089 $                   1,386 $                      497 $                         — $                      178 $                   2,061 Kimpton Shorebreak Fort Lauderdale Beach Resort $                   2,247 $                    (112) $                      351 $                         — $                         — $                      239 Kimpton Shorebreak Huntington Beach Resort $                   5,406 $                   1,410 $                      380 $                         — $                         — $                   1,790 L'Auberge de Sedona $                   9,573 $                   3,120 $                      375 $                         — $                         — $                   3,495 Lake Austin Spa Resort $                   4,969 $                         28 $                      696 $                         — $                         — $                      724 Margaritaville Beach House Key West $                   6,876 $                      765 $                      771 $                         — $                         — $                   1,536 Orchards Inn Sedona $                   2,266 $                      588 $                         85 $                         — $                         42 $                      715 Salt Lake City Marriott Downtown at City Creek $                   7,873 $                   1,831 $                      917 $                         — $                         11 $                   2,759 The Dagny Boston $                   8,537 $                      650 $                   1,534 $                         — $                         — $                   2,184 The Gwen $                   9,281 $                   1,215 $                   1,038 $                         — $                         — $                   2,253 The Hythe Vail $                   8,880 $                      832 $                   1,189 $                         — $                         — $                   2,021 The Landing Lake Tahoe Resort & Spa $                   2,426 $                      221 $                      222 $                         — $                         — $                      443 The Lindy Renaissance Charleston Hotel $                   5,583 $                   1,965 $                      474 $                         — $                         — $                   2,439 The Lodge at Sonoma Resort $                   6,592 $                      518 $                      633 $                         — $                         — $                   1,151 Tranquility Bay Beachfront Resort $                   5,064 $                      930 $                      447 $                         — $                         — $                   1,377 Westin Boston Seaport District $                 22,327 $                      161 $                   2,447 $                   1,986 $                    (122) $                   4,472 Westin Fort Lauderdale Beach Resort $                 15,567 $                   1,799 $                   1,022 $                         — $                         — $                   2,821 Westin San Diego Bayview $                   7,860 $                      998 $                      856 $                         — $                         — $                   1,854 Westin Washington D.C. City Center $                   7,150 $                    (729) $                   1,026 $                         — $                         — $                      297 Worthington Renaissance Fort Worth Hotel $                 12,240 $                   2,523 $                      938 $                      714 $                         — $                   4,175 Total $               263,547 $                 30,664 $                 28,307 $                   4,228 $                   1,536 $                 64,818 Add: Prior Ownership Results (2) $                   1,881 $                         29 $                      324 $                         — $                         — $                      353 Comparable Total $               265,428 $                 30,693 $                 28,631 $                   4,228 $                   1,536 $                 65,171 (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) Amounts include the pre-acquisition operating results of the AC Minneapolis Downtown acquired in 2024.  Hotel Adjusted EBITDA Reconciliation - Year to Date 2024 Total Revenues Net Income / (Loss) Plus: Depreciation Plus:Interest Expense Plus: Adjustments (1) Equals: HotelAdjusted 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 $              32,751 $                   8,605 $                   1,530 $                         — $                             — $                 10,135 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 Orchards Inn Sedona $                 7,663 $                   1,228 $                      360 $                         — $                          168 $                   1,756 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 (2) $                 9,257 $                   1,683 $                   1,098 $                         — $                             — $                   2,781 Comparable Total $         1,139,140 $               185,173 $               114,686 $                 15,469 $                       5,970 $               321,395 (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) Amounts include the pre-acquisition operating results of the AC Minneapolis Downtown acquired in 2024.  Hotel Adjusted EBITDA Reconciliation - Year to Date 2023 Net Income /(Loss) Plus: Plus: Plus: Equals: Hotel Total Revenues Depreciation Interest Expense Adjustments (1) Adjusted EBITDA Atlanta Marriott Alpharetta $                 16,596 $                   4,024 $                   1,458 $                         — $                         — $                   5,482 Bourbon Orleans Hotel $                 18,079 $                   3,762 $                   3,425 $                         — $                         25 $                   7,212 Cavallo Point, The Lodge at the Golden Gate $                 44,990 $                   5,131 $                   5,609 $                         — $                      375 $                 11,115 Chicago Marriott Downtown Magnificent Mile $               103,932 $                 16,266 $                 14,224 $                         23 $                 (1,589) $                 28,924 Chico Hot Springs Resort & Day Spa $                   5,384 $                       (77) $                      629 $                         — $                           3 $                      555 Courtyard Denver Downtown $                 11,696 $                   3,446 $                   1,500 $                         — $                         — $                   4,946 Courtyard New York Manhattan/Fifth Avenue $                 19,536 $                   1,777 $                   1,453 $                         — $                   1,014 $                   4,244 Courtyard New York Manhattan/Midtown East $                 37,773 $                   6,687 $                   2,028 $                   3,561 $                         — $                 12,276 Embassy Suites by Hilton Bethesda $                 13,438 $                 (6,692) $                   2,282 $                         — $                   5,873 $                   1,463 Havana Cabana Key West $                 12,884 $                   2,632 $                   1,183 $                         — $                         — $                   3,815 Henderson Beach Resort $                 39,382 $                   3,685 $                   4,091 $                         — $                         — $                   7,776 Henderson Park Inn $                   8,723 $                   2,365 $                   1,057 $                         — $                         — $                   3,422 Hilton Garden Inn New York/Times Square Central $                 28,635 $                   6,184 $                   2,578 $                         — $                         — $                   8,762 Hotel Champlain Burlington $                 23,437 $                   5,697 $                   2,275 $                         — $                         — $                   7,972 Hotel Clio $                 27,208 $                      449 $                   3,335 $                   2,529 $                         19 $                   6,332 Hotel Emblem San Francisco $                   6,561 $                 (1,024) $                   1,185 $                         — $                         — $                      161 Kimpton Hotel Palomar Phoenix $                 25,669 $                   4,110 $                   2,143 $                         — $                      716 $                   6,969 Kimpton Shorebreak Fort Lauderdale Beach Resort $                   8,414 $                    (863) $                   1,272 $                         — $                         — $                      409 Kimpton Shorebreak Huntington Beach Resort $                 21,986 $                   6,073 $                   1,557 $                         — $                         — $                   7,630 L'Auberge de Sedona $                 31,140 $                   7,743 $                   1,480 $                         — $                         — $                   9,223 Lake Austin Spa Resort $                 20,431 $                   1,865 $                   2,612 $                         — $                         — $                   4,477 Margaritaville Beach House Key West $                 30,231 $                   8,583 $                   3,137 $                         — $                         — $                 11,720 Orchards Inn Sedona $                   8,491 $                   1,694 $                      358 $                         — $                      168 $                   2,220 Salt Lake City Marriott Downtown at City Creek $                 31,106 $                   8,380 $                   2,828 $                         — $                         42 $                 11,250 The Dagny Boston $                 35,555 $                   4,324 $                   5,729 $                         — $                         — $                 10,053 The Gwen $                 36,407 $                   4,726 $                   4,201 $                         — $                         — $                   8,927 The Hythe Vail $                 46,607 $                 12,206 $                   4,792 $                         — $                         — $                 16,998 The Landing Lake Tahoe Resort & Spa $                 12,500 $                   2,741 $                      888 $                         — $                         — $                   3,629 The Lindy Renaissance Charleston Hotel $                 23,341 $                   8,548 $                   1,892 $                         — $                         — $                 10,440 The Lodge at Sonoma Resort $                 30,403 $                   5,435 $                   2,566 $                         — $                         — $                   8,001 Tranquility Bay Beachfront Resort $                 23,286 $                   5,331 $                   1,762 $                         — $                         — $                   7,093 Westin Boston Seaport District $                 93,839 $                   5,431 $                   9,870 $                   7,955 $                    (490) $                 22,766 Westin Fort Lauderdale Beach Resort $                 65,632 $                 10,977 $                   4,117 $                         — $                         — $                 15,094 Westin San Diego Bayview $                 34,984 $                   7,021 $                   3,417 $                         — $                         — $                 10,438 Westin Washington D.C. City Center $                 29,631 $                      706 $                   4,096 $                         — $                         — $                   4,802 Worthington Renaissance Fort Worth Hotel $                 46,960 $                   7,348 $                   4,273 $                   2,858 $                         — $                 14,479 Total $           1,074,867 $               166,691 $               111,302 $                 16,926 $                   6,156 $               301,156 Add: Prior Ownership Results (2) $                 17,585 $                   2,247 $                   1,821 $                         — $                         — $                   4,068 Comparable Total $           1,092,452 $               168,938 $               113,123 $                 16,926 $                   6,156 $               305,224 (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) Represents the pre-acquisition operating results of the AC Minneapolis Downtown acquired in 2024 and Chico Hot Springs Resort & Day Spa acquired in 2023.  SOURCE DiamondRock Hospitality Company WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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