DiamondRock Hospitality Company Reports Second Quarter 2013 Results

     DiamondRock Hospitality Company Reports Second Quarter 2013 Results

Reaffirms Full Year 2013 Guidance

PR Newswire

BETHESDA, Md., Aug. 9, 2013

BETHESDA, Md., Aug. 9, 2013 /PRNewswire/ --DiamondRock Hospitality Company
(the "Company") (NYSE: DRH), a lodging-focused real estate investment trust
that owns a portfolio of 27 premium hotels in the United States, today
announced results of operations for the quarter ended June 30, 2013.

Second Quarter Highlights

  oRevPAR: The Company's RevPAR was $146.84, an increase of 0.2% from 2012.
    Excluding the Company's New York City hotels under renovation, the
    Company's RevPAR increased 6.7% from 2012.
  oHotel Adjusted EBITDA Margin: The Company's Hotel Adjusted EBITDA margin
    was 29.59%, a decrease of 104 basis points from 2012. Excluding the
    Company's New York City hotels under renovation, the Company's Hotel
    Adjusted EBITDA margin was 30.93%, an increase of 130 basis points from
    2012.
  oAdjusted EBITDA:  The Company's Adjusted EBITDA was $62.4 million.
  oAdjusted FFO: The Company's Adjusted FFO was $43.2 million and Adjusted
    FFO per diluted share was $0.22.
  oDividends: The Company declared a quarterly dividend of $0.085 per share
    during the second quarter.
  oShare Repurchase Program: The Company is announcing today that its Board
    of Directors has authorized a $100 million share repurchase program.
  oGuidance: The Company reaffirmed full year 2013 guidance, including
    post-renovation Adjusted EBITDA of $195 million to $205 million and
    Adjusted FFO per share of $0.70 to $0.74.

Mark W. Brugger, President and Chief Executive Officer of DiamondRock
Hospitality Company, stated, "We are pleased with our second quarter operating
results with RevPAR growing 6.7% and profit margins expanding 130 basis
points, excluding hotels under renovation. We continue to see favorable
lodging trends, particularly in the group segment, which led to stronger than
expected performance at the Westin Boston and the Chicago Marriott Downtown.

"We made significant progress on our renovation program during the quarter and
we expect to complete the most disruptive work by the end of the third
quarter. The renovations of our two New York City Courtyard by Marriott
hotels, including the addition of 5 incremental guest rooms, are complete. We
are getting closer to completing our comprehensive renovation of the
Lexington Hotel, upgrading the property and adding 15 new rooms, and we expect
to officially join Marriott's Autograph Collection this month. We are
positioning our portfolio to deliver outstanding growth as we realize the
upside potential of our properties and benefit from our strong market
concentrations."

Operating Results

Please see "Certain Definitions" and "Non-GAAP Financial Measures" attached to
this press release for an explanation of the terms "EBITDA," "Adjusted
EBITDA," "Hotel Adjusted EBITDA Margin," "FFO" and "Adjusted FFO."

For the quarter ended June 30, 2013, the Company reported the following:

                      Second Quarter
                      2013                 2012 Pro Forma^1  Change
ADR                   $185.29              $182.38           1.6%
Occupancy             79.2%                80.3%             (1.1) percentage
                                                             points
RevPAR                $146.84              $146.48           0.2%
Total Revenue         $224.2 million    $210.8 million 6.3%
Hotel Adjusted EBITDA 29.59%               30.63%            (104) basis
Margin                                                       points
Adjusted EBITDA       $62.4 million     $60.3 million  3.5%
Adjusted FFO          $43.2 million     $46.4 million  (6.9)%
Adjusted FFO per      $0.22                $0.28             ($0.06)
diluted share
Net Income            $15.1 million     $17.1 million  ($2.0 million)
Earnings per diluted  $0.08                $0.10             ($0.02)
share
Diluted Weighted      195.7 million     168.3 million  27.4 million
Average Shares                                               shares
^1 Pro forma to (a) include the operating results of the Company's
Marriott-managed hotels from March 24, 2012 to

June 15, 2012 and all other hotels from April 1, 2012 to June 30, 2012, (b)
assume all of the Company's hotels were

owned as of January 1, 2012, and (c) exclude the operating results of the
hotels sold during 2012.



The Company's operating results for the quarter ended June 30, 2013 were
significantly impacted by the displacement of approximately 31,400 room nights
at its three New York City hotels under renovation, the Lexington Hotel New
York, Courtyard Manhattan Midtown East and Courtyard Fifth Avenue. The
following are selected operating results for the Company excluding these three
hotels:

                    Second Quarter
                    2013                  2012 Pro Forma^1   Change
ADR                 $179.53               $173.57            3.4%
Occupancy           81.4%                 78.9%              2.5 percentage
                                                             points
RevPAR              $146.14               $136.93            6.7%
Total Revenue       $206.6 million     $185.5 million  11.4%
Hotel Adjusted      $63.9 million      $55.0 million   16.3%
EBITDA
Hotel Adjusted      30.93%                29.63%             130 basis points
EBITDA Margin
^1 Pro forma to (a) include the operating results of the Company's
Marriott-managed hotels from March 24, 2012 to

June 15, 2012 and all other hotels from April 1, 2012 to June 30, 2012, (b)
assume all of the Company's hotels were

owned as of January 1, 2012, and (c) exclude the operating results of the
hotels sold during 2012.



For the six months ended June 30, 2013, the Company reported the following:

                   Six Months Ended June 30,
                   2013                   2012 Pro Forma^1  Change
ADR                $177.74                $173.09           2.7%
Occupancy          74.9%                  76.2%             (1.3) percentage
                                                            points
RevPAR             $133.19                $131.83           1.0%
Total Revenue      $405.5 million      $377.8 million 7.3%
Hotel Adjusted     25.74%                 26.53%            (79) basis points
EBITDA Margin
Adjusted EBITDA    $96.7 million       $91.8 million  5.3%
Adjusted FFO       $70.0 million       $71.9 million  (2.6)%
Adjusted FFO per   $0.36                  $0.43             ($0.07)
diluted share
Net Income         $10.9 million       $26.0 million  ($15.1 million)
Earnings per       $0.06                  $0.15             ($0.09)
diluted share
Diluted Weighted   195.7 million       168.3 million  27.4 million
Average Shares                                              shares
^1 Pro forma to (a) include the operating results of the Company's
Marriott-managed hotels from January 1, 2012 to

June 15, 2012 and all other hotels from January 1, 2012 to June 30, 2012, (b)
assume all of the Company's hotels

were owned as of January 1, 2012, and (c) exclude the operating results of the
hotels sold during 2012.



The following are selected operating results for the Company, excluding the
three New York City hotels under renovation, which resulted in the
displacement of approximately 55,300 room nights during the six months ended
June 30, 2013:

                 Six Months Ended June 30,
                 2013                   2012 Pro Forma^1    Change
ADR              $173.61                $167.60             3.6%
Occupancy        76.4%                  74.5%               1.9 percentage
                                                            points
RevPAR           $132.68                $124.89             6.2%
Total Revenue    $374.0 million      $335.2 million   11.6%
Hotel Adjusted   $102.4 million      $88.0 million    16.4%
EBITDA
Hotel Adjusted   27.38%                 26.24%              114 basis points
EBITDA Margin
^1 Pro forma to (a) include the operating results of the Company's
Marriott-managed hotels from January 1, 2012 to

June 15, 2012 and all other hotels from January 1, 2012 to June 30, 2012, (b)
assume all of the Company's hotels

were owned as of January 1, 2012, and (c) exclude the operating results of the
hotels sold during 2012.



Capital Expenditures

As previously announced, the Company is investing approximately $140 million
for capital improvements at its hotels in 2013 and early 2014. As of June 30,
2013, the Company has spent approximately $42.6 million on these capital
improvements. The Company currently expects renovation disruption of $12 to
$15 million of Hotel Adjusted EBITDA during the year ended December 31, 2013,
which has been factored into its outlook for 2013. The Company does not expect
meaningful disruption during 2014. The following is an update on the most
significant capital projects.

Lexington Hotel New York: The Company made significant progress on its
comprehensive renovation of the Lexington Hotel during the second quarter,
essentially completing the hotel's public spaces and returning approximately
365 renovated rooms to available inventory, with the balance of the rooms all
under renovation. The remaining rooms will be substantially complete by the
end of the third quarter and the hotel is now integrated with the Marriott
reservation system. The upgrade to Marriott's Autograph Collection is expected
to occur during the month of August 2013.

The Company will create 15 new rooms at the hotel by splitting several
underutilized junior suites and converting an underutilized lounge into two
new rooms. After renovation, the Lexington Hotel will include 725 guestrooms.
The incremental rooms will cost less than $1 million, or less than $70,000 per
key. The Company believes that the addition of 15 new rooms will increase the
net asset value of the hotel by approximately $8 million. The total estimated
renovation cost is expected to be approximately $46 million, after including
the cost of the new rooms.

Manhattan Courtyards: The Company completed the renovation of the guest
rooms, corridors and guest bathrooms at the Courtyard Manhattan/Midtown East
and Courtyard Manhattan/Fifth Avenue. The renovation at the Courtyard Midtown
East included the addition of 5 new guest rooms that the Company believes will
add approximately $2.5 million to the net asset value of the hotel.

The Company has other significant renovation projects planned for later in
2013 and early 2014, which are not expected to cause material disruption. The
Company has finalized the scope and timing of the following projects:

  oWestin Washington D.C.: A comprehensive $16.5 million renovation is
    expected to start during the fourth quarter of 2013 and to be completed in
    early 2014. After renovation, the hotel will be well positioned to regain
    market share and capture higher-rated business, leisure and group
    customers. The renovation scope will enhance every aspect of the guest
    experience, including the guest rooms, corridors, meeting space and the
    lobby.
  oWestin San Diego: A comprehensive $14.5 million renovation is expected to
    start during the fourth quarter of 2013 and be completed in early 2014.
    The renovation scope will include the guestrooms, corridors, lobby, public
    areas, and meeting space at the hotel.
  oHilton Minneapolis:  A $13 million renovation of the guest rooms, guest
    bathrooms and corridors is expected to commence in late 2013. The
    renovated hotel is expected to allow the hotel to further penetrate the
    group segment.
  oHilton Boston Downtown: A $7 million renovation of the guest rooms,
    corridors, public areas, and meeting space is expected to commence during
    the fourth quarter of 2013 and be completed in early 2014. The Company is
    also evaluating the feasibility of converting more than 20 of the 66
    existing suites into additional rooms at the hotel.
  oHilton Burlington: A $6 million renovation of the lobby, corridors, guest
    rooms and outdoor space is expected to commence during the fourth quarter
    of 2013 and be completed in early 2014.

Hilton Garden Inn Times Square Update

The Company is under contract to purchase the 282-room hotel being constructed
in Times Square for a fixed price of approximately $127 million, or $450,000
per key. Construction is progressing on schedule and the Company expects to
close on the acquisition of the hotel in mid-2014. The hotel has recently
completed vertical construction at 37 stories, and the Company made its final
$5 million deposit in July, bringing the total deposit to $27 million. The
hotel will be branded a Hilton Garden Inn and be operated by Highgate Hotels,
the largest operator of hotels in New York City. At this time, the Company
anticipates the balance of the acquisition price of approximately $100 million
will be funded by corporate cash, a draw on its corporate credit facility, or
proceeds from financing one of its unencumbered assets.

Balance Sheet

As of June 30, 2013, the Company had $54.3 million of unrestricted cash on
hand and approximately $1.1 billion of total debt, which consists solely of
property-specific mortgage debt. The Company has no outstanding borrowings on
its $200 million senior unsecured credit facility.

Share Repurchase Program

The Company's Board of Directors voted to authorize the Company to purchase up
to $100 million in shares of its common stock. Repurchases under this program
will be made in open market or privately negotiated transactions. This
authority may be exercised from time to time and in such amounts as market
conditions warrant, and subject to regulatory considerations. The timing and
actual number of shares repurchased will depend on a variety of factors
including price, corporate and regulatory requirements, market conditions, and
other corporate liquidity requirements and priorities. The share repurchase
program may be suspended or terminated at any time without prior notice.

Dividends

The Company's Board of Directors declared a quarterly dividend of $0.085 per
share to stockholders of record as of June 28, 2013. The dividend was paid on
July 11, 2013.

Outlook and Guidance

The Company is providing annual guidance for 2013, but does not undertake to
update it for any developments in its business. Achievement of the
anticipated results is subject to the risks disclosed in the Company's filings
with the U.S. Securities and Exchange Commission. The Company's 2013 RevPAR
guidance assumes all of the Company's 27 hotels were owned since January 1,
2012.

The Company is reaffirming its 2013 guidance. The current guidance reflects
the outperformance of certain of the Company's hotels compared to previous
expectations, specifically:

  oStronger group performance at the Westin Boston Waterfront and the Chicago
    Marriott Downtown
  oStronger transient demand at the San Diego Westin and Salt Lake City
    Marriott.

This outperformance is offset by an increase in estimated renovation
disruption to a range of $12.0 million to $15.0 million. The increase is the
result of additional displaced rooms at the Lexington Hotel as a result of a
power interruption and construction of the 15 new rooms. The increase to the
Company's disruption estimate will primarily impact the third quarter.

The Company expects the full year 2013 results to be as follows:

Metric              Pre-Renovation Guidance Renovation         2013 Guidance
                                            Disruption
Pro Forma RevPAR    4 percent to 6 percent  3 percent          1 percent to 3
Growth                                                         percent
Adjusted EBITDA     $210 million to $217    $12 million to $15 $195 million to
                    million                 million            $205 million
Adjusted FFO        $149 million to $154    $9 million to $11  $138 million to
                    million                 million            $145 million
Adjusted FFO per
share
                    $0.76 to $0.79          $0.05 to $0.06     $0.70 to $0.74
(based on 195.9
million shares)



Earnings Call

The Company will host a conference call to discuss its second quarter results
on Friday, August 9, 2013, at 9:00 a.m. Eastern Time (ET). To participate in
the live call, investors are invited to dial 866-515-2915 (for domestic
callers) or 617-399-5129 (for international callers). The participant
passcode is 61365633. A live webcast of the call will be available via the
investor relations section of DiamondRock Hospitality Company's website at
www.drhc.com or www.earnings.com. A replay of the webcast will also be
archived on the website for one year.

Reporting Calendar Change

Effective January 1, 2013, the Company reports its quarterly results of
operations on a calendar cycle. Historically, the Company reported its
quarterly results of operations based on the fiscal calendar used by Marriott
International. Since the Company is not changing its fiscal year, its 2012
financial information will not be restated in its quarterly filings with the
U.S. Securities and Exchange Commission. The following table highlights the
periods presented in the Company's 2012 and 2013 reporting calendars.

Quarter 2012 Calendar (as previously reported) 2013 Calendar
1^st    Marriott     January 1 – March 23      All January 1 – March 31
        Non-Marriott January 1 – February 29
2^nd    Marriott     March 24 – June 15        All April 1 – June 30
        Non-Marriott March 1 – May 31
3^rd    Marriott     June 16 – September 7     All July 1 – September 30
        Non-Marriott June 1 – August 31
4^th    Marriott     September 8 – December 31 All October 1 – December 31
        Non-Marriott September 1 – December 31



The Company cannot fully restate its 2012 operating results because Marriott
did not provide 2012 operating results on a daily basis. Hotel operating
results incorporated into the Company's financial statements are prepared by
its hotel managers. The unavailability of 2012 operating results on a calendar
quarter basis for all of the Company's hotels prevented the restatement of the
Company's 2012 quarterly financial statements. Instead, in comparing 2013
quarterly results to 2012 results, the Company will (i) use the non-Marriott
2012 results on a calendar quarter basis and (ii) amend the previously
reported Marriott 2012 quarterly results as follows:

  oThe first quarter of 2012 includes Marriott operating results from January
    1 to March 23.
  oThe second quarter of 2012 includes Marriott operating results from March
    24 to June 15.
  oThe third quarter of 2012 includes Marriott operating results from June 16
    to October 5.
  oThe fourth quarter of 2012 includes the Marriott operating results from
    October 6 to December 31.

Therefore, the 2013 calendar quarters will have 8 additional days in the first
quarter, 7 additional days in the second quarter, 20 fewer days in the third
quarter and 5 additional days in the fourth quarter.

The following table reallocates selected 2012 quarterly pro forma operating
information as described above into the 2013 reporting calendar.

                       Quarter 1,    Quarter 2,    Quarter 3,    Quarter 4,
                       2012          2012          2012          2012
RevPAR                 $       $       $       $      
                       117.09        146.48        139.56        133.36
Revenues (in           $        $        $        $     
thousands)             167,026       210,809       228,371       196,005
Hotel Adjusted EBITDA  $       $       $       $      
(in thousands)         35,685        64,564        63,776        54,085
% of Full Year         16.4%         29.6%         29.2%         24.8%
Hotel Adjusted EBITDA  21.36%        30.63%        27.93%        27.59%
Margin
Available Rooms        1,004,405     1,010,443     1,184,252     1,034,027



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 top gateway markets and destination resort locations.
The Company owns 27 premium quality hotels with over 11,500 rooms. The Company
has strategically positioned its hotels to generally be operated under the
leading global brands such as Hilton, Marriott, and Westin. 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: 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; risks associated with the
level of the Company's indebtedness; 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; risks associated with the development of a
hotel by a third-party developer; risks associated with the rebranding of the
Lexington Hotel New York; 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
As of June 30, 2013 and December 31, 2012
(in thousands, except share and per share amounts)
                                              June 30, 2013  December 31, 2012
                                              (unaudited)
ASSETS
Property and equipment, at cost               $ 3,173,959    $    3,131,175
Less: accumulated depreciation                (573,332)      (519,721)
                                              2,600,627      2,611,454
Deferred financing costs, net                 8,719          9,724
Restricted cash                               88,115         76,131
Due from hotel managers                       86,129         68,532
Note receivable                               48,661         53,792
Favorable lease assets, net                   40,452         40,972
Prepaid and other assets (1)                  77,904         73,814
Cash and cash equivalents                     54,251         9,623
Total assets                                  $  3,004,858   $  2,944,042
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Mortgage debt                                 $ 1,064,074    $  968,731
Senior unsecured credit facility              —              20,000
Total debt                                    1,064,074      988,731
Deferred income related to key money, net     24,168         24,362
Unfavorable contract liabilities, net         79,103         80,043
Due to hotel managers                         55,631         51,003
Dividends declared and unpaid                 16,919         15,911
Accounts payable and accrued expenses (2)     91,025         88,879
Total other liabilities                       266,846        260,198
Stockholders' Equity:
Preferred stock, $0.01 par value; 10,000,000
shares authorized; no shares                  —              —

issued and outstanding
Common stock, $0.01 par value; 400,000,000
shares authorized;

195,470,791 and 195,145,707 shares       1,955          1,951
issued and outstanding at June 30,

2013 and December31, 2012, respectively
Additional paid-in capital                    1,977,520      1,976,200
Accumulated deficit                           (305,537)      (283,038)
Total stockholders' equity                    1,673,938      1,695,113
Total liabilities and stockholders' equity    $ 3,004,858    $  2,944,042

    Includes $39.4 million of deferred tax assets, $21.9 million for the
(1) Hilton Garden Inn Times Square purchase deposit, $10.1 million

    of prepaid expenses and $6.5 million of other assets as of June 30, 2013.
    Includes $56.2 million of deferred ground rent, $11.4 million of deferred
    tax liabilities, $11.1 million of accrued property taxes, $3.2
(2)
    million of accrued capital expenditures and $9.1 million of other accrued
    liabilities as of June 30, 2013.







DIAMONDROCK HOSPITALITY COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Fiscal Quarters Ended June 30, 2013 and June 15, 2012 and
the Periods from January 1, 2013 to June 30, 2013 and January 1, 2012 to June
15, 2012
(in thousands, except per share amounts)
                    Fiscal Quarter Ended          Period From
                                                  January 1,     January 1,
                                                  2013 to        2012 to
                    June30, 2013  June15, 2012
                                                  June 30, 2013  June 15, 2012
                    (Unaudited)    (Unaudited)    (Unaudited)    (Unaudited)
Revenues:
Rooms               $  154,549     $  123,972     $  278,835     $  205,465
Food and beverage   56,943         46,414         102,220        76,625
Other               12,692         10,564         24,432         17,282
Total revenues      224,184        180,950        405,487        299,372
Operating Expenses:
Rooms               39,226         32,605         75,569         56,958
Food and beverage   38,079         32,419         71,885         55,723
Management fees     7,351          6,502          12,231         9,569
Other hotel         74,559         59,248         144,126        107,034
expenses
Depreciation and    27,193         20,129         54,026         40,190
amortization
Impairment of
favorable lease     —              468            —              468
asset
Hotel acquisition   14             1,999          24             2,031
costs
Corporate expenses  5,287          5,001          13,123         9,484
Total operating     191,709        158,371        370,984        281,457
expenses
Operating profit    32,475         22,579         34,503         17,915
Other Expenses
(Income):
Interest income     (1,659)        (155)          (2,945)        (217)
Interest expense    14,456         12,510         28,040         23,978
Gain on early
extinguishment of   —              —              —              (144)
debt
Total other         12,797         12,355         25,095         23,617
expenses
Income (loss) from
continuing          19,678         10,224         9,408          (5,702)
operations before
income taxes
Income tax          (4,606)        (1,739)        1,537          4,081
(expense) benefit
Income from
continuing          15,072         8,485          10,945         (1,621)
operations
Income from
discontinued        —              459            —              13,180
operations, net of
income taxes
Net income          $  15,072      $  8,944       $  10,945      $  11,559
Earnings (loss)
earnings per share:
Continuing          $  0.08        $  0.05        $  0.06        $  (0.01)
operations
Discontinued        —              0.00           —              0.08
operations
Basic and diluted   $  0.08        $  0.05        $  0.06        $  0.07
earnings per share



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, 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
GAAP. EBITDA, 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.

EBITDA and FFO

EBITDA represents net income excluding: (1)interest expense; (2)provision
for income taxes, including income taxes applicable to sale of assets; and
(3)depreciation and amortization. We believe EBITDA is useful to an investor
in evaluating our operating performance because it helps 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) from our operating results. In
addition, covenants included in our indebtedness use EBITDA as a measure of
financial compliance. We also use EBITDA as one measure in determining the
value of hotel acquisitions and dispositions.

The Company computes FFO in accordance with standards established by NAREIT,
which defines FFO as net income determined in accordance with GAAP, excluding
gains or losses from sales of properties and impairment losses, plus
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 depreciation and amortization
and gain or loss on sale of assets. The Company also uses FFO as one measure
in assessing its results.

Adjustments to EBITDA and FFO

We adjust EBITDA and FFO when evaluating our performance because we believe
that the exclusion of certain additional recurring and non-recurring 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 GAAP net income, EBITDA
and FFO, is beneficial to an investor's complete understanding of our
operating performance. We adjust EBITDA and FFO for the following items:

  oNon-Cash Ground Rent: We exclude the non-cash expense incurred from the
    straight line recognition of rent from our ground lease obligations and
    the non-cash amortization of our favorable lease assets.
  oNon-Cash Amortization of Favorable and Unfavorable Contracts: We exclude
    the non-cash amortization of the favorable management contract assets
    recorded in conjunction with our acquisitions of the Westin Washington
    D.C. City Center, Westin San Diego, and Hilton Burlington and the non-cash
    amortization of the unfavorable contract liabilities recorded in
    conjunction with our acquisitions of the Bethesda Marriott Suites, the
    Chicago Marriott Downtown, the Renaissance Charleston and the Lexington
    Hotel New York. The amortization of the favorable and unfavorable
    contracts does not reflect the underlying operating performance of our
    hotels.
  oCumulative Effect of a Change in Accounting Principle: Infrequently, the
    Financial Accounting Standards Board (FASB) promulgates new accounting
    standards that require the consolidated statement of operations to reflect
    the cumulative effect of a change in accounting principle. We exclude the
    effect of these one-time adjustments because they do not reflect its
    actual performance for that period.
  oGains from Early Extinguishment of Debt: We exclude the effect of gains
    recorded on the early extinguishment of debt because we believe they do
    not accurately reflect the underlying performance of the Company.
  oAcquisition Costs: We exclude acquisition transaction costs expensed
    during the period because we believe they do not reflect the underlying
    performance of the Company.
  oAllerton Loan: In 2012, due to the uncertainty of the timing of the
    bankruptcy resolution, we excluded both cash interest payments received
    and the legal costs incurred as a result of the bankruptcy proceedings
    from our calculation of Adjusted EBITDA and Adjusted FFO. Due to the
    settlement of the bankruptcy proceedings and amended and restated loan, we
    commenced recognizing interest income in 2013, which includes the
    amortization of the difference between the carrying basis of the old loan
    and face value of the new loan. Cash payments received during 2010 and
    2011 that were included in Adjusted EBITDA and Adjusted FFO and reduced
    the carrying basis of the loan will be now be deducted from Adjusted
    EBITDA and Adjusted FFO on a straight-line basis over the anticipated
    five-year term of the new loan.
  oOther Non-Cash and /or Unusual Items: We exclude the effect of certain
    non-cash and/or unusual items because we believe they do not reflect the
    underlying performance of the Company. In 2012, we excluded the franchise
    termination fee paid to Radisson because we believe that including it
    would not reflect the ongoing performance of the hotel. In 2013, we
    exclude the severance costs associated with the retirement of our Chief
    Operating Officer because these costs do not reflect the underlying
    performance of the Company.

In addition, to derive Adjusted EBITDA we exclude gains or losses on
dispositions and impairment losses because we believe that including them in
EBITDA is not consistent with reflecting the ongoing performance of our
hotels. Additionally, the gain or loss on dispositions and impairment losses
represent either accelerated depreciation or excess depreciation in previous
periods, and depreciation is excluded from EBITDA.

In addition, to derive Adjusted FFO we exclude any fair value adjustments to
debt instruments. Specifically, we exclude the impact of the non-cash
amortization of the debt premium recorded in conjunction with the acquisition
of the JW Marriott Denver at Cherry Creek and fair market value adjustments to
the Company's interest rate cap agreement.

The following tables are reconciliations of our U.S. GAAP net income to EBITDA
and Adjusted EBITDA (in thousands):

                                Fiscal Quarter Ended
                                               June 15, 2012  June 15, 2012
                                June 30, 2013
                                               Pro Forma (1)  As Reported (2)
Net income                      $   15,072     $   17,065     $   8,944
Interest expense                14,456         12,511         12,510
Income tax benefit (3)          4,606          1,848          1,848
Real estate related
depreciation and amortization   27,193         24,532         20,571
(4)
EBITDA                          61,327         55,956         43,873
Non-cash ground rent            1,717          1,618          1,575
Non-cash amortization of
favorable and unfavorable       (354)          (317)          (432)
contracts, net
Acquisition costs               14             1,999          1,999
Reversal of previously          (291)          —              —
recognized Allerton income
Allerton loan legal fees        —              590            590
Impairment of favorable lease   —              468            468
asset
Adjusted EBITDA                 $   62,413     $   60,314     $   48,073

    Pro forma to (a) include the operating results of the Company's
    Marriott-managed hotels from March 24, 2012 to June 15, 2012 and all

(1) other hotels from April 1, 2012 to June 30, 2012, (b) assume all of the
    Company's 27 hotels were owned as of January 1, 2012, and (c)

    exclude the operating results of the hotels sold during 2012.
(2) As reported in the Company's Quarterly Report on Form 10-Q filed with the
    SEC on July 25, 2012.
    Amounts include income tax expense included in discontinued operations as
(3) follows: $0.1 million in the fiscal quarter ended

    June 15, 2012 As Reported.
    Amounts include depreciation expense included in discontinued operations
(4) as follows: $0.4 million in the fiscal quarter ended

    June 15, 2012 As Reported.





                         Period from
                                           January 1, 2012   January 1, 2012
                         January 1, 2013
                                           to June 15, 2012  to June 15, 2012
                         to June 30, 2013
                                           Pro Forma (1)     As Reported (2)
Net income               $    10,945       $    25,955       $    11,559
Interest expense (3)     28,040            23,977            26,274
Income tax benefit (4)   (1,537)           (3,740)           (3,740)
Real estate related
depreciation and         54,026            48,996            41,089
amortization (5)
EBITDA                   91,474            95,188            75,182
Non-cash ground rent     3,410             3,194             3,107
Non-cash amortization of
favorable and            (709)             (634)             (864)
unfavorable contracts,
net
Gain on sale of hotel    —                 (10,017)          (10,017)
properties
Gain on early            —                 (144)             (144)
extinguishment of debt
Acquisition costs        24                2,031             2,031
Reversal of previously
recognized Allerton      (581)             —                 —
income
Allerton loan legal fees —                 912               912
Franchise termination    —                 750               750
fee
Severance costs (6)      3,065             —                 —
Impairment of favorable  —                 468               468
lease asset
Adjusted EBITDA          $    96,683       $    91,748       $    71,425

    Pro forma to (a) include the operating results of the Company's
    Marriott-managed hotels from January 1, 2012 to June 15, 2012 and all
    other
(1)
    hotels from January 1, 2012 to June 30, 2012, (b) assume all of the
    Company's 27 hotels were owned as of January 1, 2012, and (c) exclude

    the operating results of the hotels sold during 2012.
(2) As reported in the Company's Quarterly Report on Form 10-Q filed with the
    SEC on July 25, 2012.
    Amounts include interest expense included in discontinued operations as
(3) follows: $2.3 million in the period from January 1, 2012 to

    June 15, 2012 As Reported.
    Amounts include income tax expense included in discontinued operations as
(4) follows: $0.3 million in the period from January 1, 2012 to

    June 15, 2012 As Reported.
    Amounts include depreciation expense included in discontinued operations
(5) as follows: $0.9 million in the period from January 1, 2012 to

    June 15, 2012 As Reported.
(6) Severance costs recognized in connection with the retirement of John L.
    Williams as Chief Operating Officer.







                                Guidance
                                Pre-Renovation 2013     2013
                                Low End     High End    Low End     High End
Net income (1)                  $ 36,567    $ 42,567    $ 25,567    $ 33,567
Interest expense                58,000      58,100      58,000      58,100
Income tax expense (benefit)    2,600       4,500       (1,400)     1,500
Real estate related             107,000     106,000     107,000     106,000
depreciation and amortization
EBITDA                          204,167     211,167     189,167     199,167
Non-cash ground rent            6,400       6,400       6,400       6,400
Non-cash amortization of
favorable and unfavorable       (1,400)     (1,400)     (1,400)     (1,400)
contracts, net
Key money write-off             (1,069)     (1,069)     (1,069)     (1,069)
Reversal of previously          (1,163)     (1,163)     (1,163)     (1,163)
recognized Allerton income
Severance costs (2)             3,065       3,065       3,065       3,065
Adjusted EBITDA                 $ 210,000   $ 217,000   $ 195,000   $ 205,000

(1) Net income includes approximately $6.1 million of interest income related
    to the Allerton loan.
(2) Severance costs recognized in connection with the retirement of John L.
    Williams as Chief Operating Officer.





The following tables are reconciliations of our U.S. GAAP net income to FFO
and Adjusted FFO (in thousands):

                                Fiscal Quarter Ended
                                               June 15, 2012  June 15, 2012
                                June 30, 2013
                                               Pro Forma (1)  As Reported (2)
Net income                      $   15,072     $   17,065     $   8,944
Real estate related
depreciation and amortization   27,193         24,532         20,571
(3)
Impairment of favorable lease   —              468            468
asset
FFO                             42,265         42,065         29,983
Non-cash ground rent            1,717          1,618          1,575
Non-cash amortization of
unfavorable contract            (354)          (317)          (432)
liabilities
Acquisition costs               14             1,999          1,999
Reversal of previously          (291)          —              —
recognized Allerton income
Allerton loan legal fees        —              590            590
Fair value adjustments to debt  (125)          448            448
instruments
Adjusted FFO                    $   43,226     $   46,403     $   34,163
Adjusted FFO per share          $   0.22       $   0.28       $   0.20

    Pro forma to (a) include the operating results of the Company's
    Marriott-managed hotels from March 24, 2012 to June 15, 2012

(1) and all other hotels from April 1, 2012 to June 30, 2012, (b) assume all
    of the Company's 27 hotels were owned as of January 1,

    2012, and (c) exclude the operating results of the hotels sold during
    2012.
(2) As reported in the Company's Quarterly Report on Form 10-Q filed with the
    SEC on July 25, 2012.
    Amounts include depreciation expense included in discontinued operations
(3) as follows: $0.4 million in the fiscal quarter

    ended June 15, 2012 As Reported.





                         Period from
                                           January 1, 2012   January 1, 2012
                         January 1, 2013
                                           to June 15, 2012  to June 15, 2012
                         to June 30, 2013
                                           Pro Forma (1)     As Reported (2)
Net income               $    10,945       $    25,955       $    11,559
Real estate related
depreciation and         54,026            48,996            41,089
amortization (3)
Impairment of favorable  —                 468               468
lease asset
Gain on sale of hotel    —                 (10,017)          (10,017)
properties
FFO                      64,971            65,402            43,099
Non-cash ground rent     3,410             3,194             3,107
Non-cash amortization of
unfavorable contract     (709)             (634)             (864)
liabilities
Gain on early            —                 (144)             (144)
extinguishment of debt
Acquisition costs        24                2,031             2,031
Reversal of previously
recognized Allerton      (581)             —                 —
income
Allerton loan legal fees —                 912               912
Franchise termination    —                 750               750
fee
Severance costs (4)      3,065             —                 —
Fair value adjustments   (191)             401               401
to debt instruments
Adjusted FFO             $    69,989       $    71,912       $    49,292
Adjusted FFO per share   $    0.36         $    0.43         $    0.29

    Pro forma to (a) include the operating results of the Company's
    Marriott-managed hotels from January 1, 2012 to June 15, 2012

(1) and all other hotels from January 1, 2012 to June 30, 2012, (b) assume all
    of the Company's 27 hotels were owned as of January 1,

    2012, and (c) exclude the operating results of the hotels sold during
    2012.
(2) As reported in the Company's Quarterly Report on Form 10-Q filed with the
    SEC on July 25, 2012.
    Amounts include depreciation expense included in discontinued operations
(3) as follows: $0.9 million in the period from January 1,

    2012 to June 15, 2012 As Reported.
(4) Severance costs recognized in connection with the retirement of John L.
    Williams as Chief Operating Officer.



                                Guidance
                                Pre-Renovation 2013     2013
                                Low End     High End    Low End     High End
Net income (1)                  $ 36,567    $ 42,567    $ 25,567    $ 33,567
Real estate related             107,000     106,000     107,000     106,000
depreciation and amortization
FFO                             143,567     148,567     132,567     139,567
Non-cash ground rent            6,400       6,400       6,400       6,400
Non-cash amortization of
favorable and unfavorable       (1,400)     (1,400)     (1,400)     (1,400)
contracts, net
Key money write-off             (1,069)     (1,069)     (1,069)     (1,069)
Reversal of previously          (1,163)     (1,163)     (1,163)     (1,163)
recognized Allerton income
Severance costs (2)             3,065       3,065       3,065       3,065
Debt premium amortization       (400)       (400)       (400)       (400)
Adjusted FFO                    $ 149,000   $ 154,000   $ 138,000   $ 145,000
Adjusted FFO per share          $ 0.76      $ 0.79      $ 0.70      $ 0.74

(1) Net income includes approximately $6.1 million of interest income related
    to the Allerton loan.
(2) Severance costs recognized in connection with the retirement of John L.
    Williams as Chief Operating Officer.



Use and Limitations of Non-GAAP Financial Measures

Our management and Board of Directors use EBITDA, 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 GAAP
financial measures, and our consolidated statements of operations and 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 GAAP. They should not be considered
as alternatives to operating profit, cash flow from operations, or any other
operating performance measure prescribed by GAAP. These non-GAAP financial
measures reflect additional ways of viewing our operations that we believe,
when viewed with our GAAP results and the reconciliations to the corresponding
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.

Certain Definitions

In this release, when we discuss "Hotel Adjusted EBITDA," we exclude from
Hotel EBITDA the non-cash expense incurred by the hotels due to the straight
lining of the rent from our ground lease obligations, the non-cash
amortization of our favorable lease assets, the non-cash amortization of the
unfavorable contract liabilities recorded in conjunction with the acquisitions
of the Bethesda Marriott Suites, the Chicago Marriott Downtown, the
Renaissance Charleston and the Lexington Hotel New York. Hotel EBITDA
represents hotel net income excluding: (1) interest expense; (2) income taxes;
and (3) depreciation and amortization. Hotel Adjusted EBITDA margins are
calculated as Hotel Adjusted EBITDA divided by total hotel revenues. Net debt
is calculated as total debt outstanding less unrestricted cash.





DIAMONDROCK HOSPITALITY COMPANY
PRO FORMA HOTEL OPERATING DATA
Schedule of Property Level Results
(in thousands)
(unaudited)
                    Fiscal Quarter Ended         Period From
                                                   January    January
                    June 30,    June 15,  %        1, 2013    1, 2012   %
                    2013        2012      Change                        Change
                                                   to June    to June
                                                   30, 2013   15, 2012
Revenues:
Rooms              $          $        4.4%    $         $         5.0%
                    154,549    148,005          278,835    265,608
Food and beverage   56,943      50,716    12.3%   102,220    90,617     12.8%
Other               12,692      12,092    5.0%    24,432     21,611     13.1%
Total revenues      224,184     210,813   6.3%    405,487    377,836    7.3%
Operating Expenses:
Rooms departmental  $          $        6.0%    $         $         8.2%
expenses            39,226     37,018           75,569     69,820
Food and beverage
departmental        38,079      34,501    10.4%   71,885     64,540     11.4%
expenses
Other direct        6,017       5,365     12.2%   11,677     10,370     12.6%
departmental
General and         16,181      15,915    1.7%    31,909     30,538     4.5%
administrative
Utilities           7,154       6,440     11.1%   14,262     13,436     6.1%
Repairs and         9,644       8,618     11.9%   18,789     17,062     10.1%
maintenance
Sales and marketing 17,451      17,236    1.2%    33,153     32,635     1.6%
Base management     5,348       5,327     0.4%    9,761      9,454      3.2%
fees
Incentive           2,003       1,692     18.4%   2,470      1,752      41.0%
management fees
Property taxes      11,087      9,196     20.6%   20,892     18,467     13.1%
Ground rent         3,711       3,525     5.3%    7,481      7,012      6.7%
Other fixed         3,316       2,710     22.4%   5,964      5,066      17.7%
expenses
Total hotel         $          $        7.9%    $         $         8.4%
operating expenses  159,217    147,543          303,812    280,152
Hotel EBITDA        64,967      63,270    2.7%    101,675    97,684     4.1%
Non-cash ground     1,717       1,618     6.1%    3,410      3,194      6.8%
rent
Non-cash
amortization of
                    (354)       (317)     11.7%   (709)      (634)      11.8%
unfavorable
contract
liabilities
Hotel Adjusted      $          $        2.7%    $         $         4.1%
EBITDA              66,330     64,571           104,376    100,244

NOTE:
      The pro forma operating data above includes the operating results for
      the Company's 27 hotels assuming they were owned since January 1, 2012.
      The fiscal quarter

      ended June 15, 2012 includes the operating results of the Company's
      Marriott-managed hotels from March 24, 2012 to June 15, 2012 and all
      other hotels from April 1, 2012

      to June 30, 2012. The Period from January 1, 2012 to June 15, 2012
      includes the operating results of the Company's Marriott-managed hotels
      from January 1, 2012 to

      June 15, 2012 and all other hotels from January 1, 2012 to June 30,
      2012.





Market Capitalization as of June 30, 2013

(in thousands, except per share data)


Enterprise Value
Common equity capitalization (at June 30, 2013 closing       $   1,827,681
price of $9.32/share)
Consolidated debt                                             1,064,074
Cash and cash equivalents                                     (54,251)
Total enterprise value                                        $   2,837,504
Share Reconciliation
Common shares outstanding                                     195,471
Unvested restricted stock held by management and employees    557
Share grants under deferred compensation plan held by         75
directors
Combined shares outstanding                                   196,103



Debt Summary as of June 30, 2013
(dollars in thousands)


Property                      Interest    Term        Outstanding   Maturity
                              Rate                    Principal
Courtyard Manhattan /         8.810%      Fixed       $        October
Midtown East                                          41,736       2014
Salt Lake City Marriott       5.500%      Fixed       27,817        January
Downtown                                                            2015
Courtyard Manhattan /         6.480%      Fixed       49,882        June 2016
Fifth Avenue
Los Angeles Airport           5.300%      Fixed       82,600        July 2015
Marriott
Frenchman's Reef Marriott     5.440%      Fixed       58,183        August
                                                                    2015
Renaissance Worthington       5.400%      Fixed       54,254        July 2015
Orlando Airport Marriott      5.680%      Fixed       57,182        January
                                                                    2016
Chicago Marriott Downtown     5.975%      Fixed       209,953       April 2016
Hilton Minneapolis            5.464%      Fixed       96,054        May 2021
JW Marriott Denver Cherry     6.470%      Fixed       40,324        July 2015
Creek
Lexington Hotel New York      LIBOR +     Variable    170,368       March 2015
                              3.00
Westin Washington D.C. City   3.990%      Fixed       73,283        January
Center                                                              2023
The Lodge at Sonoma           3.960%      Fixed       30,913        April 2023
Westin San Diego              3.940%      Fixed       70,801        April 2023
Debt premium (1)                                      724
 Total mortgage debt                               1,064,074
Senior unsecured credit       LIBOR +     Variable    -             January
facility                      1.90                                  2017
Total debt                                            $  
                                                      1,064,074


(1) Non-cash GAAP adjustment recorded upon the assumption of the JW
Marriott Denver at Cherry Creek mortgage debt in 2011.

Pro Forma Operating Statistics – Second Quarter (1)
             ADR                    Occupancy            RevPAR                  Hotel Adjusted EBITDA
                                                                                 Margin
             2Q 2013 2Q     B/(W)   2Q    2Q    B/(W)    2Q 2013 2Q     B/(W)    2Q 2013 2Q 2012  B/(W)
                     2012           2013  2012                   2012
Atlanta      $      $                                 $     $                              472
Alpharetta   150.62       9.9%    79.8% 69.3% 10.5%    120.23      26.5%    37.27%  32.55%   bps
                     137.08                                      95.04
Bethesda     $      $                                 $     $                              37
Marriott     167.70       1.9%    74.1% 77.0% (2.9%)   124.24       (2.0%)   32.39%  32.02%   bps
Suites               164.59                                      126.77
Boston       $      $                                 $     $                              298
Westin       222.10       2.3%    86.7% 84.4% 2.3%     192.52       5.2%     33.37%  30.39%   bps
                     217.04                                      183.08
Hilton       $      $                                 $     $                              -894
Boston       242.09       (1.4%)  85.2% 86.2% (1.0%)   206.33       (2.5%)   38.56%  47.50%   bps
Downtown             245.48                                      211.70
Hilton       $      $                                 $     $                              129
Burlington   161.90       1.7%    73.4% 76.9% (3.5%)   118.88       (2.9%)   43.37%  42.08%   bps
                     159.23                                      122.45
Renaissance  $      $                                 $     $                              -239
Charleston  209.51       0.5%    92.4% 91.2% 1.2%     193.65       1.9%     39.40%  41.79%   bps
                     208.44                                      190.08
Hilton       $      $                                 $     $                              298
Garden Inn   249.87       13.4%   97.9% 96.9% 1.0%     244.59       14.6%    49.99%  47.01%   bps
Chelsea              220.28                                      213.39
Chicago      $      $                                 $     $                              -118
Marriott     233.79       6.5%    83.1% 79.2% 3.9%     194.17       11.7%    28.24%  29.42%   bps
                     219.46                                      173.85
Chicago      $      $                                 $     $                              483
Conrad       246.72       8.3%    89.7% 86.9% 2.8%     221.26       11.7%    41.80%  36.97%   bps
                     227.74                                      198.02
Courtyard    $      $                                 $     $                              108
Denver       181.22       11.0%   86.4% 87.2% (0.8%)   156.53       10.0%    49.40%  48.32%   bps
Downtown             163.21                                      142.34
Courtyard    $      $                                 $     $                              -1126
Fifth        284.76       1.5%    72.8% 88.3% (15.5%)  207.21       (16.4%)  19.66%  30.92%   bps
Avenue               280.54                                      247.79
Courtyard    $      $                                 $     $                              -822
Midtown      285.49       0.7%    77.2% 86.1% (8.9%)   220.26       (9.8%)   30.37%  38.59%   bps
East                 283.42                                      244.06
Frenchman's  $      $                                 $     $                              -78
Reef        223.59       (1.8%)  86.6% 81.8% 4.8%     193.58       4.0%     18.61%  19.39%   bps
                     227.70                                      186.17
JW Marriott          $                                         $  
Denver       $            6.4%    82.7% 78.5% 4.2%     $           12.2%    31.72%  32.44%   -72
Cherry       245.56 230.70                              202.99 180.99                           bps
Creek
Los Angeles  $      $                                 $     $                              485
Airport      113.41       1.4%    89.3% 85.0% 4.3%     101.24      6.5%     26.23%  21.38%   bps
                     111.87                                      95.06
Hilton       $      $                                 $     $                              314
Minneapolis  158.82       7.8%    82.6% 80.7% 1.9%     131.24       10.3%    35.39%  32.25%   bps
                     147.35                                      118.94
Oak Brook    $      $                                 $    $                              600
Hills        127.33       12.1%   64.0% 59.6% 4.4%     81.44       20.4%    14.74%  8.74%    bps
                     113.55                                      67.65
Orlando      $     $                                 $    $                              228
Airport      96.83        (8.1%)  75.5% 74.7% 0.8%     73.12       (7.1%)   26.15%  23.87%   bps
Marriott             105.42                                      78.75
             $      $                                 $     $                              -255
Hotel Rex    183.81       10.7%   88.2% 91.5% (3.3%)   162.17       6.8%     32.64%  35.19%   bps
                     166.09                                      151.89
Salt Lake    $      $                                 $     $                              839
City         141.94       8.1%    75.5% 66.3% 9.2%     107.10      22.9%    34.91%  26.52%   bps
Marriott             131.35                                      87.13
The Lodge    $      $                                 $     $                              762
at Sonoma    252.76       13.1%   79.4% 77.4% 2.0%     200.81       16.1%    27.94%  20.32%   bps
                     223.57                                      172.94
Torrance     $      $                                 $     $                              43
Marriott     119.00       9.2%    85.1% 85.6% (0.5%)   101.32      8.5%     27.47%  27.04%   bps
South Bay            109.01                                      93.35
Vail         $      $                                 $    $                              858
Marriott     137.79       (5.6%)  55.9% 47.4% 8.5%     77.01       11.3%    (1.99%) (10.57%) bps
                     146.00                                      69.19
Lexington    $      $                                 $     $                              -4251
Hotel New    215.96       (4.0%)  50.6% 95.9% (45.3%)  109.17       (49.4%)  (3.02%) 39.49%   bps
York                 225.03                                      215.89
Westin San   $      $                                 $     $                              204
Diego        152.30       (3.9%)  87.4% 79.3% 8.1%     133.09       6.0%     34.32%  32.28%   bps
                     158.42                                      125.61
Westin               $                                         $  
Washington   $            (1.4%)  86.0% 83.7% 2.3%     $           1.3%     40.22%  42.36%   -214
D.C. City    212.42 215.48                              182.76 180.36                           bps
Center
Renaissance  $      $                                 $     $                              134
Worthington  174.64       11.6%   65.7% 75.7% (10.0%)  114.69       (3.1%)   34.56%  33.22%   bps
                     156.48                                      118.39
             $      $                                 $     $                              -104
Total        185.29       1.6%    79.2% 80.3% (1.1%)   146.84       0.2%     29.59%  30.63%   bps
                     182.38                                      146.48
Total
Excluding    $      $                                 $     $                              130
NY           179.53       3.4%    81.4% 78.9% 2.5%     146.14       6.7%     30.93%  29.63%   bps
Renovations          173.57                                      136.93
(2)

(1) The pro forma operating data includes the operating results for the
    Company's 27 hotels assuming they were owned since January 1, 2012.
    Excludes the three hotels in New York City under renovation; the Lexington
(2) Hotel New York, Courtyard Manhattan Midtown East and Courtyard Fifth
    Avenue.



Pro Forma Operating Statistics – Year to Date (1)
             ADR                    Occupancy            RevPAR                  Hotel Adjusted
                                                                                 EBITDA Margin
             YTD     YTD    B/(W)   YTD   YTD   B/(W)    YTD     YTD    B/(W)    YTD     YTD    B/(W)
             2013    2012           2013  2012           2013    2012            2013    2012
Atlanta      $      $                                 $     $                            196
Alpharetta   148.70       5.6%    76.4% 68.3% 8.1%     113.62      18.2%    36.28%  34.32% bps
                     140.78                                      96.13
Bethesda     $      $                                 $     $                            -37
Marriott     171.63       1.4%    61.5% 64.5% (3.0%)   105.51       (3.3%)   26.80%  27.17% bps
Suites               169.28                                      109.15
Boston       $      $                                 $     $                            251
Westin       201.73       0.1%    75.2% 72.1% 3.1%     151.69       4.3%     23.62%  21.11% bps
                     201.62                                      145.37
Hilton       $      $                                 $     $                            -714
Boston       208.53       (1.4%)  79.2% 77.3% 1.9%     165.20       1.0%     30.41%  37.55% bps
Downtown             211.49                                      163.55
Hilton       $      $                                 $    $                            338
Burlington   143.80       1.4%    67.8% 68.4% (0.6%)   97.56       0.7%     35.45%  32.07% bps
                     141.76                                      96.90
Renaissance  $      $                                 $     $                            -14
Charleston  197.37       3.7%    86.7% 85.7% 1.0%     171.22       5.0%     36.44%  36.58% bps
                     190.30                                      163.09
Hilton       $      $                                 $     $                            338
Garden Inn   215.12       11.7%   97.0% 94.0% 3.0%     208.68       15.2%    43.07%  39.69% bps
Chelsea              192.64                                      181.11
Chicago      $      $                                 $     $                            216
Marriott     203.06       5.0%    72.9% 67.6% 5.3%     148.11       13.3%    21.07%  18.91% bps
                     193.36                                      130.68
Chicago      $      $                                 $     $                            399
Conrad       210.74       5.5%    80.6% 76.0% 4.6%     169.82       11.8%    27.85%  23.86% bps
                     199.83                                      151.91
Courtyard    $      $                                 $     $                            -57
Denver       167.70       8.2%    83.0% 84.5% (1.5%)   139.26       6.3%     44.35%  44.92% bps
Downtown             155.03                                      130.96
Courtyard    $      $                                 $     $                            -1223
Fifth        260.81       4.3%    68.6% 86.2% (17.6%)  178.95       (17.0%)  10.28%  22.51% bps
Avenue               250.04                                      215.56
Courtyard    $      $                                 $     $                            -751
Midtown      255.23       2.8%    75.7% 82.6% (6.9%)   193.14       (5.8%)   22.02%  29.53% bps
East                 248.19                                      204.99
Frenchman's  $      $                                 $     $                            -43
Reef        267.81       3.4%    88.5% 83.5% 5.0%     237.04       9.6%     26.16%  26.59% bps
                     259.12                                      216.27
JW Marriott          $                                         $  
Denver       $            6.0%    79.2% 73.7% 5.5%     $           13.9%    28.85%  28.23% 62
Cherry       236.45 223.13                              187.38 164.50                         bps
Creek
Los Angeles  $      $                                 $    $                            143
Airport      113.69       3.4%    85.7% 87.3% (1.6%)   97.39       1.4%     22.20%  20.77% bps
                     109.98                                      96.05
Hilton       $      $                                 $     $                            281
Minneapolis  140.82       3.8%    72.2% 71.2% 1.0%     101.67      5.3%     26.97%  24.16% bps
                     135.68                                      96.59
Oak Brook    $      $                                 $    $                            121
Hills        120.92       7.4%    54.0% 54.7% (0.7%)   65.29       6.0%     4.68%   3.47%  bps
                     112.58                                      61.57
Orlando      $      $                                 $    $                            -68
Airport      104.10       (6.1%)  81.2% 79.2% 2.0%     84.48       (3.8%)   27.85%  28.53% bps
Marriott             110.82                                      87.81
             $      $                                 $     $                            -450
Hotel Rex    178.38       4.8%    82.7% 84.6% (1.9%)   147.47       2.5%     29.22%  33.72% bps
                     170.17                                      143.89
Salt Lake    $      $                                 $     $                            366
City         144.51       6.7%    71.5% 68.8% 2.7%     103.36      11.0%    35.10%  31.44% bps
Marriott             135.38                                      93.10
The Lodge    $      $                                 $     $                            868
at Sonoma    228.11       10.1%   71.3% 64.8% 6.5%     162.66       21.1%    20.10%  11.42% bps
                     207.18                                      134.33
Torrance     $      $                                 $    $  
Marriott     118.24       7.6%    80.6% 83.2% (2.6%)   95.24       4.1%     25.42%  25.40% 2 bps
South Bay            109.92                                      91.49
Vail         $      $                                 $     $                            327
Marriott     265.54       2.5%    72.5% 65.5% 7.0%     192.51       13.4%    36.37%  33.10% bps
                     259.08                                      169.82
Lexington    $      $                                 $     $                            -3782
Hotel New    187.61       (1.4%)  54.6% 94.0% (39.4%)  102.45       (42.7%)  (7.64%) 30.18% bps
York                 190.26                                      178.88
Westin San   $      $                                 $     $                            144
Diego        153.72       (1.7%)  86.0% 76.5% 9.5%     132.22       10.5%    33.15%  31.71% bps
                     156.42                                      119.63
Westin               $                                         $  
Washington   $            (1.9%)  78.1% 73.6% 4.5%     $           4.1%     35.13%  38.12% -299
D.C. City    202.87 206.76                              158.49 152.20                         bps
Center
Renaissance  $      $                                 $     $                            -21
Worthington  174.38       11.6%   65.2% 76.7% (11.5%)  113.70       (5.1%)   33.00%  33.21% bps
                     156.28                                      119.79
             $      $                                 $     $                            -79
Total        177.74       2.7%    74.9% 76.2% (1.3%)   133.19       1.0%     25.74%  26.53% bps
                     173.09                                      131.83
Total
Excluding    $      $                                 $     $                            114
NY           173.61       3.6%    76.4% 74.5% 1.9%     132.68       6.2%     27.38%  26.24% bps
Renovations          167.60                                      124.89
(2)

(1) The pro forma operating data includes the operating results for the
    Company's 27 hotels assuming they were owned since January 1, 2012.
    Excludes the three hotels in New York City under renovation; the Lexington
(2) Hotel New York, Courtyard Manhattan Midtown East and Courtyard Fifth
    Avenue.





Pro Forma Hotel Adjusted EBITDA Reconciliation
              Second Quarter 2013 (1)
                                  Plus:         Plus:     Plus:       Equals:
              Total      Net                    Interest  Non-Cash    Hotel
              Revenues   Income / Depreciation  Expense   Adjustments Adjusted
                         (Loss)                           (2)         EBITDA
Atlanta       $      $     $       $     $      $   
Alpharetta                    408                 
              4,848      1,399                  -    -         1,807
Bethesda      $      $                   $     $      $   
Marriott                  $                        
Suites        4,189                375      -   1,557       1,357
                         (575)
Boston        $      $     $       $     $      $   
Westin                       2,128                  
              24,595     6,076                  -    3          8,207
Hilton        $      $     $       $     $      $   
Boston                      1,436                  
Downtown      7,401      1,376                  -   42           2,854
              $      $                   $     $      $   
Hilton                    $                     
Burlington    3,618               842      -   23           1,569
                         704
Renaissance   $      $     $       $     $      $   
Charleston                    398                  
              3,533      1,026                  -   (32)         1,392
Hilton        $      $     $       $     $      $   
Garden Inn                    474                 
Chelsea       3,873      1,462                  -    -          1,936
Chicago       $      $     $       $     $      $   
Marriott                     3,317                     
              29,911     2,328               3,201    (398)        8,448
Chicago       $      $     $       $     $      $   
Conrad                        924                 
              8,374      2,576                  -   -          3,500
Courtyard     $      $     $       $     $      $   
Denver                        263                 
Downtown      2,686      1,064                  -   -          1,327
              $      $                   $     $      $   
Courtyard                 $                      
Fifth Avenue  3,504                436    848     53           
                         (648)                                       689
              $      $                   $     $      $   
Courtyard                 $                     
Midtown East  6,418               622    981      -          1,949
                         346
              $      $                   $     $      $   
Frenchman's                $                     
Reef          16,843            1,654     824      -          3,135
                         657
JW Marriott   $      $                   $     $      $   
Denver                    $                     
Cherry Creek  5,748               488    589      -          1,823
                         746
Los Angeles   $      $     $       $     $      $   
Airport                      1,372                   
              15,192     1,490               1,123     -          3,985
Minneapolis   $      $     $       $     $      $   
Hilton                       1,936                      
              15,481     2,309               1,349    (116)       5,478
              $      $                   $     $      $   
Oak Brook                 $                       
Hills         6,413               263      -  106          
                         576                                          945
Orlando       $      $                   $     $      $   
Airport                   $                     
Marriott      4,918                795    826      -          1,286
                         (335)
              $      $                   $     $      $   
Hotel Rex                 $                     
              1,596               230      -   -           
                         291                                          521
Salt Lake     $      $     $       $     $      $   
City                          735                 
Marriott      7,001      1,315                394      -          2,444
              $      $                   $     $      $   
The Lodge at              $                     
Sonoma        5,609               369    315      -          1,567
                         883
Torrance      $      $     $       $     $      $   
Marriott                      586                 
South Bay     6,171      1,109                  -   -          1,695
              $      $                   $     $      $   
Vail                      $                     
Marriott      4,381                605      -   -           
                         (692)                                       (87)
Lexington    $      $                   $     $      $   
Hotel New                 $                      
York          7,623               3,184    1,681    30           
                         (5,125)                                      (230)
              $      $                   $     $      $   
Westin San                $                     
Diego         7,570             1,064     713     47           2,598
                         774
Westin        $      $                   $     $      $   
Washington                $                     
D.C. City     8,188             1,590     777     46           3,293
Center                   880
Renaissance   $      $     $       $     $      $   
Worthington                   699                 
              8,500      1,486                751      2          2,938
              $      $     $       $     $      $   
Total                        27,193                        
              224,184   23,498                14,372   1,363      66,330
Total         $      $                   $     $      $   
Excluding NY                $                          
Renovations   206,639   28,925   22,951     10,862   1,280      63,922
(3)

(1) The pro forma operating data includes the operating results for the
    Company's 27 hotels assuming they were owned since January 1, 2012.
    The non-cash adjustments include expenses incurred by the hotels due to
    the straight lining of the rent from ground lease obligations, the
(2) non-cash amortization of favorable

    lease assets, and the non-cash amortization of unfavorable contract
    liabilities.
    Excludes the three hotels in New York City under renovation; the Lexington
(3) Hotel New York, Courtyard Manhattan Midtown East and Courtyard Fifth
    Avenue.



Pro Forma Hotel Adjusted EBITDA Reconciliation
              

              Second Quarter 2012 (1)
                                  Plus:         Plus:     Plus:       Equals:
              Total      Net                    Interest  Non-Cash    Hotel
              Revenues   Income / Depreciation  Expense   Adjustments Adjusted
                         (Loss)                           (2)         EBITDA
              $      $                   $     $      $   
Atlanta                   $                     
Alpharetta    3,638               305     -    -           1,184
                         879
Bethesda      $      $                   $                 $   
Marriott                  $            $         
Suites        3,932                479     -       1,447  1,259
                         (667)
Boston        $      $     $       $     $      $   
Westin                       1,917                  
              22,550     4,933                 -    2           6,852
Hilton        $      $     $       $     $      $   
Boston                      1,309                   
Downtown      7,525      2,223                 -    42          3,574
              $      $                   $     $      $   
Hilton                    $                      
Burlington    3,786               773     -    23          1,593
                         797
Renaissance   $      $     $       $     $      $   
Charleston                    350                   
              3,173      1,005                 -    (29)        1,326
Hilton        $      $     $       $     $      $   
Garden Inn                    437                 
Chelsea       3,389      1,156                 -    -           1,593
Chicago       $      $     $       $     $      $   
Marriott                     2,991                      
              26,587     2,216               2,981     (365)       7,823
Chicago       $      $     $       $     $      $   
Conrad                        768                 
              7,411      1,972                 -    -           2,740
Courtyard     $      $                   $     $      $   
Denver                    $                     
Downtown      2,465               235     -    -           1,191
                         956
              $      $                   $     $      $   
Courtyard                 $                      
Fifth Avenue  3,887               430   792      48           1,202
                         (68)
Courtyard     $      $     $       $     $      $   
Midtown East                  548                 
              6,647      1,116               901      -           2,565
              $      $                   $     $      $   
Frenchman's                $                     
Reef          14,789            1,451    772      -           2,868
                         645
JW Marriott   $      $                   $     $      $   
Denver                    $                     
Cherry Creek  5,215               420   554      -           1,692
                         718
              $      $                   $     $      $   
Los Angeles                $                      
Airport       13,805            1,340    1,037     -           2,951
                         574
Minneapolis   $      $     $       $     $      $   
Hilton                      1,748                      
              14,018     1,617               1,272     (116)       4,521
              $      $                   $                 $   
Oak Brook                 $            $         
Hills         5,046                731     -        125   
                         (415)                                       441
Orlando       $      $                   $     $      $   
Airport                   $                     
Marriott      4,863                688   773      -           1,161
                         (300)
              $      $                   $     $      $   
Hotel Rex                 $                     
              1,469               206     -    -            
                         311                                          517
Salt Lake     $      $                   $     $      $   
City                      $                     
Marriott      5,297               646   385      -           1,405
                         374
              $      $                   $     $      $   
The Lodge at              $                     
Sonoma        4,548               350     -    -            
                         574                                          924
Torrance      $      $                   $     $      $   
Marriott                  $                     
South Bay     5,363               737     -    -           1,450
                         713
              $      $                   $     $      $   
Vail                      $                     
Marriott      3,406                535     -    -           
                         (895)                                       (360)
Lexington     $      $     $       $     $      $   
Hotel New                    2,363                    
York          14,798     1,284               2,166     31          5,844
Westin San    $      $     $       $     $      $   
Diego                         973                  
              6,930      1,217                 -    47          2,237
Westin        $      $                   $     $      $   
Washington                $                      
D.C. City     8,078      2,234   1,142      -    46          3,422
Center
Renaissance   $      $     $       $     $      $   
Worthington                   661                 
              8,198      1,359               704      (1)          2,723
              $      $     $       $     $      $   
Total                        24,533                        
              210,813   26,528                12,337    1,300      64,571
Total         $      $                   $     $      $   
Excluding NY                $                         
Renovations   185,481   24,196   21,192     8,478     1,221      54,960
(3)

(1) The pro forma operating data includes the operating results for the
    Company's 27 hotels assuming they were owned as of January 1, 2012.
    The non-cash adjustments include expenses incurred by the hotels due to
    the straight lining of the rent from ground lease obligations, the
(2) non-cash amortization of our

    favorable lease assets and the non-cash amortization of our unfavorable
    contract liabilities.
    Excludes the three hotels in New York City under renovation; the Lexington
(3) Hotel New York, Courtyard Manhattan Midtown East and Courtyard Fifth
    Avenue.







Pro Forma Hotel Adjusted EBITDA Reconciliation
              Year to Date 2013 (1)
                                   Plus:         Plus:    Plus:       Equals:
              Total      Net                     Interest Non-Cash    Hotel
              Revenues   Income /  Depreciation  Expense  Adjustments Adjusted
                         (Loss)                           (2)         EBITDA
              $      $                   $     $      $   
Atlanta                    $                     
Alpharetta    9,379     2,590        813         -         3,403
                                                  -
Bethesda      $      $                   $     $      $   
Marriott                   $                        
Suites        7,235     (2,058)       882        3,115       1,939
                                                  -
              $      $                   $     $      $   
Boston                      $                     
Westin        38,481    4,837      4,247          5          9,089
                                                  -
Hilton        $      $                   $     $      $   
Boston                     $                     
Downtown      11,964     686       2,868         84           3,638
                                                  -
              $      $                   $     $      $   
Hilton                    $                     
Burlington    5,927      373       1,683         45           2,101
                                                  -
              $      $                   $     $      $   
Renaissance                $                      
Charleston    6,298     1,572        786        (63)        2,295
                                                  -
Hilton        $      $                   $     $      $   
Garden Inn                 $                     
Chelsea       6,606     1,898        947         -         2,845
                                                  -
Chicago       $      $     $       $     $      $   
Marriott                      6,556                    
              47,326    (2,175)                  6,386 (796)       9,971
              $      $                   $     $      $   
Chicago                     $                     
Conrad        12,540    1,657      1,836          -         3,493
                                                  -
Courtyard     $      $                   $     $      $   
Denver                     $                     
Downtown      4,798     1,605        523         -         2,128
                                                  -
              $      $                   $     $      $   
Courtyard                  $                      
Fifth Avenue  6,039     (1,927)       750    1,689 109           
                                                                      621
Courtyard     $      $     $       $     $      $   
Midtown East                 1,200                  
              11,183    (690)                   1,953  -         2,463
Frenchman's   $      $     $       $     $      $   
Reef                          3,254                  
              37,314    4,865                   1,643  -         9,762
JW Marriott   $      $     $       $     $      $   
Denver                         966                 
Cherry Creek  10,591     905                    1,184  -         3,055
Los Angeles   $      $     $       $     $      $   
Airport                       2,720                  
              29,331    1,558                   2,233  -         6,511
Minneapolis   $      $     $       $     $      $   
Hilton                       3,872                    
              24,979     439                    2,691 (266)       6,736
              $      $                   $     $      $   
Oak Brook                 $                      
Hills         9,891     (278)        525        216           
                                                  -                 463
Orlando       $      $     $       $     $      $   
Airport                      1,520                  
Marriott      11,187     (49)                  1,645  -         3,116
              $      $                   $     $      $   
Hotel Rex                 $                     
              2,930      394         462         -          
                                                  -                 856
Salt Lake     $      $                   $     $      $   
City                        $                     
Marriott      13,710    2,551      1,471           -         4,812
                                                 790
              $      $                   $     $      $   
The Lodge at              $                     
Sonoma        9,445      812         733          -         1,898
                                                 353
Torrance      $      $                   $     $      $   
Marriott                    $                     
South Bay     11,611    1,783      1,168          -         2,951
                                                  -
              $      $                   $     $      $   
Vail                        $                     
Marriott      16,659    4,858      1,201          -         6,059
                                                  -
Lexington    $      $                   $     $      $   
Hotel New                    $                     
York          14,305    (10,863)    6,346     3,361 63          
                                                                      (1,093)
              $      $                   $     $      $   
Westin San                  $                     
Diego         14,886    1,987      2,117          94           4,935
                                                 737
Westin        $      $                   $     $      $   
Washington                 $                     
D.C. City     14,332     211       3,177     1,555 92           5,035
Center
Renaissance   $      $     $       $     $      $   
Worthington                   1,403                  
              16,540    2,554                   1,497  4          5,458
              $      $     $       $     $      $   
Total                          54,026                     
              405,487   20,095                 27,717  2,702      104,376
Total         $      $                   $     $      $   
Excluding NY                  $                       
Renovations   373,960   33,575    45,730     20,714  2,530      102,385
(3)

(1) The pro forma operating data includes the operating results for the
    Company's 27 hotels assuming they were owned since January 1, 2012.
    The non-cash adjustments include expenses incurred by the hotels due to
    the straight lining of the rent from ground lease obligations, the
(2) non-cash amortization of favorable

    lease assets, and the non-cash amortization of unfavorable contract
    liabilities.
    Excludes the three hotels in New York City under renovation; the Lexington
(3) Hotel New York, Courtyard Manhattan Midtown East and Courtyard Fifth
    Avenue.



Pro Forma Hotel Adjusted EBITDA Reconciliation
              

              Year to Date 2012 (1)
                                  Plus:         Plus:     Plus:       Equals:
              Total      Net                    Interest  Non-Cash    Hotel
              Revenues   Income / Depreciation  Expense   Adjustments Adjusted
                         (Loss)                           (2)         EBITDA
Atlanta       $      $     $       $     $      $   
Alpharetta                    598                 
              7,486      1,971                  -   -         2,569
Bethesda      $      $                   $     $      $   
Marriott                  $                        
Suites        6,878                 958      -  2,890       1,869
                         (1,979)
Boston        $      $     $       $     $      $   
Westin                       4,155                  
              35,880     3,418                  -   3          7,576
Hilton        $      $     $       $     $      $   
Boston                       2,617                  
Downtown      11,892     1,765                  -  84           4,466
              $      $                   $     $      $   
Hilton                    $                     
Burlington    5,937             1,546       -  45           1,904
                         313
Renaissance   $      $     $       $     $      $   
Charleston                    696                  
              5,498      1,373                  -  (58)        2,011
Hilton        $      $     $       $     $      $   
Garden Inn                    874                 
Chelsea       5,777      1,419                  -   -         2,293
              $      $                   $     $      $   
Chicago                    $                        
Marriott      39,626              5,643    5,955    (730)       7,495
                         (3,373)
Chicago       $      $     $       $     $      $   
Conrad                       1,534                  
              11,191     1,136                  -   -         2,670
Courtyard     $      $     $       $     $      $   
Denver                        472                 
Downtown      4,557      1,400                175      -         2,047
              $      $                   $     $      $   
Courtyard                 $                      
Fifth Avenue  6,740                 855   1,576    95           1,517
                         (1,009)
              $      $                   $     $      $   
Courtyard                  $                      
Midtown East  11,181            1,094    1,794     -         3,302
                         414
Frenchman's   $      $     $       $     $      $   
Reef                         2,890                   
              31,943     4,049               1,555     -         8,494
JW Marriott   $      $                   $     $      $   
Denver                    $                      
Cherry Creek  9,440               839   1,102     -         2,665
                         724
              $      $                   $     $      $   
Los Angeles                $                      
Airport       26,906            2,688    2,060     -         5,589
                         841
              $      $                   $     $      $   
Minneapolis                $                        
Hilton       23,287             3,489    2,534    (277)       5,627
                         (119)
              $      $                   $     $      $   
Oak Brook                 $                      
Hills         8,907               1,466       -  250           
                         (1,407)                                      309
Orlando       $      $                   $     $      $   
Airport                    $                      
Marriott      10,471           1,388    1,538     -         2,987
                         61
              $      $                   $     $      $   
Hotel Rex                 $                     
              2,811               412      -   -          
                         536                                          948
Salt Lake     $      $     $       $     $      $   
City                         1,281                  
Marriott      11,472     1,556                770      -         3,607
              $      $                   $     $      $   
The Lodge at              $                     
Sonoma        7,321               686      -   -          
                         150                                          836
Torrance      $      $     $       $     $      $   
Marriott                     1,472                  
South Bay     10,345     1,156                  -   -         2,628
Vail          $      $     $       $     $      $   
Marriott                     1,069                  
              14,225     3,640                  -   -         4,709
Lexington     $      $                   $     $      $   
Hotel New                  $                      
York          24,729            4,724    2,529    67           7,463
                         143
Westin San    $      $     $       $     $      $   
Diego                        1,946                  
              13,310     2,179                  -  95           4,220
Westin        $      $                   $     $      $   
Washington                 $                     
D.C. City     13,838     2,899   2,285       -  91           5,275
Center
Renaissance   $      $     $       $     $      $   
Worthington                  1,318                   
              16,188     2,649               1,403     6          5,376
              $      $     $       $     $      $   
Total                        48,995                       
              377,836   25,905                22,991   2,561      100,244
Total         $      $                   $     $      $   
Excluding NY                $                          
Renovations   335,186   26,357   42,322     17,092   2,399      87,962
(3)

(1) The pro forma operating data includes the operating results for the
    Company's 27 hotels assuming they were owned as of January 1, 2012.
    The non-cash adjustments include expenses incurred by the hotels due to
    the straight lining of the rent from ground lease obligations, the
(2) non-cash amortization of our

    favorable lease assets and the non-cash amortization of our unfavorable
    contract liabilities.
    Excludes the three hotels in New York City under renovation; the Lexington
(3) Hotel New York, Courtyard Manhattan Midtown East and Courtyard Fifth
    Avenue.





SOURCE DiamondRock Hospitality Company

Website: http://www.drhc.com
Contact: Sean Mahoney, (240) 744-1150
 
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