Investor Presentaiton
Definitions
EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA Margin
Earnings before interest expense, taxes and depreciation and amortization ("EBITDA"), presented herein, reflects net income (loss), excluding interest
expense, a provision for income taxes and depreciation and amortization. The Company considers EBITDA to be a useful measure for investors in
evaluating and facilitating comparisons of its operating performance between periods and between REITs by removing the impact of the Company's capital
structure (primarily interest expense) and asset base (primarily depreciation and amortization) from its operating results.
Adjusted EBITDA, presented herein, is calculated as EBITDA, as previously defined, further adjusted to exclude gains, losses and expenses in connection
with: (i) foreign currency transactions; (ii) share-based compensation; (iii) non-cash impairment losses; (iv) transition costs related to the Company's
establishment as an independent, publicly traded company; (v) asset dispositions for both consolidated and unconsolidated investments; (vi) debt
restructurings/retirements; (vii) severance and relocation; and (viii) other gains and losses that management believes are not representative of the
Company's current or future operating performance.
Hotel Adjusted EBITDA measures property-level results before debt service, depreciation and corporate expenses of the Company's consolidated hotels,
including both comparable and non-comparable hotels but excluding hotels owned by unconsolidated affiliates, and is a key measure of the Company's
profitability. The Company presents Hotel Adjusted EBITDA to help the Company and its investors evaluate the ongoing operating performance of the
Company's consolidated hotels.
Hotel Adjusted EBITDA margin, is calculated as Hotel Adjusted EBITDA as a percentage of Total Hotel Revenue.
EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA margin are not recognized terms under United States ("U.S.") GAAP and
should not be considered as alternatives to net income (loss) or other measures of financial performance or liquidity derived in accordance with U.S.
GAAP. In addition, the Company's definitions of EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA margin may not be
comparable to similarly titled measures of other companies.
The Company believes that EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA margin provide useful information to investors
about the Company and its financial condition and results of operations for the following reasons: (i) EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA
and Hotel Adjusted EBITDA margin are among the measures used by the Company's management team to evaluate its operating performance and make
day-to-day operating decisions; and (ii) EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA margin are frequently used by
securities analysts, investors and other interested parties as a common performance measure to compare results or estimate valuations across companies
in the industry.
EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA margin have limitations as analytical tools and should not be considered
either in isolation or as a substitute for net income (loss) or other methods of analyzing results as reported under U.S. GAAP.
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