false 0001070750 0001070750 2020-09-30 2020-09-30

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): September 30, 2020

 

HOST HOTELS & RESORTS, INC.

(Exact Name of Registrant as Specified in Charter)

 

 

Maryland		001-14625		53-0085950
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(IRS Employer Identification No.)

 

4747 Bethesda Avenue, Suite 1300 Bethesda, Maryland		20814
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s telephone number, including area code: (240) 744-1000

 

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

 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class		Trading Symbol		Name of Each Exchange on Which Registered
Common Stock, $.01 par value		HST		Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

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Item 2.02. Results of Operations and Financial Condition.

On November 4, 2020, Host Hotels & Resorts, Inc. issued a press release announcing its financial results for the third quarter ended September 30, 2020. The press release referred to supplemental financial information for the quarter that is available on the Company’s website at www.hosthotels.com. A copy of the press release and the supplemental financial information are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Report.

The information in this Report, including the exhibits, is provided under Item 2.02 of Form 8-K and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section. Furthermore, the information in this Report, including the exhibits, shall not be deemed to be incorporated by reference into the filings of the registrant under the Securities Act of 1933 regardless of any general incorporation language in such filings.

 

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

 

Exhibit No.		Description
99.1		Host Hotels & Resorts, Inc.’s earnings release for the third quarter 2020.
99.2		Host Hotels & Resorts, Inc. Third Quarter 2020 Supplemental Financial Information.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

 

 

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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

				HOST HOTELS & RESORTS, INC.
Date: November 4, 2020				By:		/S/ BRIAN G. MACNAMARA
				Name:		Brian G. Macnamara
				Title:		Senior Vice President and Corporate Controller

 

 

Host Hotels & Resorts, Inc. Reports Results for Third Quarter 2020

BETHESDA, MD; November 4, 2020 – Host Hotels & Resorts, Inc. (NASDAQ: HST) (the “Company”), the nation’s largest lodging real estate investment trust (“REIT”), today announced results for the third quarter of 2020.

James F. Risoleo, President and Chief Executive Officer, said, “During the third quarter, we achieved a meaningful sequential increase in revenue and reduced our net loss and hotel-level operating losses from second-quarter levels, despite a year-over-year decrease in travel due to COVID-19. We reopened 20 hotels during the quarter, and consistently improved RevPAR each month as our operators increased average hotel occupancy by 680 basis points from July to September. In addition, we took important steps with our hotel operators towards achieving our goal of permanent cost savings as we continue to redefine our operating model and strengthen our business for the long term.”

Risoleo continued, “Subsequent to quarter end, we sold the 532-key Newport Beach Marriott Hotel & Spa for approximately $216 million after retaining FF&E reserves, and 29 acres of land adjacent to The Phoenician hotel for approximately $66 million. We are pleased to capitalize on these opportunistic sales at attractive prices that enhance our liquidity and reduce our near-term capital spending requirements. We ended the quarter with $2.4 billion of cash, having drawn the remaining capacity on our credit facility, issued $750 million of senior notes and used $390 million to repay existing debt. These actions further augmented our already solid cash position while extending our weighted average debt maturity and maintaining our weighted average interest rate. We continue to maximize our liquidity and maintain the strength of our investment-grade balance sheet, with no near-term debt maturities and a best-in-class ability to withstand prolonged business disruption.”

Operating Results ¹

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

 

 

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*Additional detail on the Company’s results, including data for 22 domestic markets and top 40 hotels by Total RevPAR, is available in the Third Quarter 2020 Supplemental Financial Information available on the Company’s website at www.hosthotels.com.

Portfolio Highlights:

Update on COVID-19 Response and Positioning for Recovery

In response to the COVID-19 pandemic, the Company and its hotel operators have prioritized preserving financial liquidity and ensuring that the Company’s hotels are well positioned for recovery.

Preserving financial liquidity:²

Compared to second quarter 2020, cash used in operating activities improved by $23 million in the third quarter and cash burn improved by approximately $132 million, as a result of month to month improvement in average occupancy and, for cash burn, lower levels of capital expenditures and recording of the ERC. Significant expenditures included in the Company’s total cash burn are (in millions):

The Company’s liquidity can be estimated based on the average monthly GAAP cash used in operating activities and cash burn using the third quarter performance as well as forecasted interest expense and capital expenditures. Monthly cash burn for the fourth quarter is expected to exceed the third quarter average primarily due to the timing and amount of payments of capital expenditures, interest payments, and the ERC. In a scenario in which fourth quarter hotel operations are commensurate with the third quarter but exclude the $23 million ERC, the Company estimates that:

 

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Based on the above, the Company anticipates the total available liquidity at the end of 2020 would be approximately $2.4 billion to $2.5 billion, including cash and FF&E reserves, and proceeds from the sales referenced above that occurred subsequent to quarter end, but not including any potential debt paydowns or other transactions. At this current cash burn level, the Company anticipates it would have ample liquidity until November of 2022, subject to obtaining continued covenant waivers from the lenders under the credit facility.

Actions by the Company’s hotel operators and the Company to preserve financial liquidity and position itself for the recovery include:

Reducing Operating Costs

Strengthening the Balance Sheet

Positioning for recovery

Operating Results

The Company’s prior year presentation of comparable hotel performance is no longer relevant given the impact of COVID-19. Hotel operating results, including RevPAR, are instead being reported on an All Owned Hotel pro forma basis, which includes all consolidated properties owned as of September 30, 2020, but does not include the results of operations for properties sold in 2019 or through the reporting date. Additionally, operating results for acquisitions in the prior year are reflected for the full 2019 calendar year, to include results for periods prior to the Company’s ownership. See the Notes to Financial Information – All Owned Hotel Operating Statistics and Results for further information on these pro forma statistics.

Due to low occupancy levels and/or state mandates, operations remain suspended at four hotels in the Company’s portfolio as of November 4, 2020. The Company has provided a complete list of these suspended hotels on page 35 of its Third Quarter 2020 Supplemental Financial Information available on the Company’s website at www.hosthotels.com.

The following presents the monthly hotel operating results for the full portfolio during the periods presented:

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The following presents the monthly hotel operating results for the hotels without suspended operations during the periods presented:³

Hotel Business Mix Update

The Company’s customers fall into three broad groups: transient, group and contract business, which accounted for approximately 61%, 35%, and 4%, respectively, of its 2019 room sales.

During the third quarter, demand continued to be primarily driven by drive-to and resort destinations. The following are the sequential results of the Company’s consolidated portfolio transient, group and contract business:

The Company and its operators have focused on rebooking future business with its customers and have rebooked approximately 16% of group business that was cancelled in 2020 into future years.

Capital Expenditures

The Company’s capital expenditures spending is expected to range from $475 million to $510 million for full year 2020:

 

Through the third quarter of 2020, the Company completed approximately 78% of the total capital expenditure projects planned for the year. The full year forecast ROI capital expenditures includes $175 million to $180 million for the Marriott transformational capital program, which is reduced by approximately $20 million compared to the prior forecast as a result of savings on completed projects and construction timing. The Company expects to receive operating profit guarantees of approximately $20 million in 2020, including $5 million that was received in the third quarter of 2020 and $7 million expected in the fourth quarter.

The Company has prioritized major capital projects in assets and markets that are expected to recover faster, such as leisure and drive-to destinations, as well as previously announced major return on investment projects. The Company is utilizing the low occupancy environment to accelerate certain projects and minimize future disruption.

Dispositions

On October 30, 2020, the Company sold 29 acres of land adjacent to The Phoenician hotel for approximately $66 million. The buyer plans for residential development on the land, including a mix of single family, villas and condominium units.

 

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Additionally, residents of these new homes will be provided the option of purchasing membership to an amenity program with The Phoenician to access resort amenities and other services. On November 2, 2020, the Company sold the Newport Beach Marriott Hotel & Spa for $216 million and expects to record a gain of approximately $200 million in the fourth quarter for the combined sales.

Balance Sheet

The Company maintains a robust balance sheet with the following balances at September 30, 2020:

The Company’s quarterly-tested financial covenants in its credit facility were waived beginning July 1, 2020 through the second quarter of 2021, with testing resuming for the third quarter of 2021. The Company’s credit facility requires that net proceeds from debt issuances and asset sales in excess of $350 million be used first to repay borrowings under the revolver and, in excess of $700 million in proceeds, to repay the revolver and term loans on a pro rata basis, subject to certain exceptions. As a result of restrictions under the waiver, proceeds from the issuance of Series I senior notes, the Newport Beach Marriott sale and the land sale at The Phoenician, the Company may be required to use a portion of the combined sale proceeds to repay the revolving credit facility to the extent the Series I senior notes proceeds are not used to repay other debt. As of September 30, 2020, the Company was below the financial covenant levels under its senior notes indentures necessary to incur debt and, as a result, it will not be able to incur additional debt while below these levels.

2020 Outlook

Given the global economic uncertainty COVID-19 has created for the travel, airline, lodging and tourism and event industries, among others, the Company cannot provide guidance for its operations or fully estimate the effect of COVID-19 on operations. The Company does not expect to see a material improvement in operations until government restrictions have been lifted and business and leisure travelers are comfortable that the risks associated with traveling and contracting COVID-19 are significantly reduced. The Company does not intend to provide further updates unless deemed appropriate.

About Host Hotels & Resorts

Host Hotels & Resorts, Inc. is an S&P 500 company and is the largest lodging real estate investment trust and one of the largest owners of luxury and upper-upscale hotels. The Company currently owns 74 properties in the United States and five properties internationally totaling approximately 46,100 rooms. The Company also holds non-controlling interests in six domestic and one international joint ventures. Guided by a disciplined approach to capital allocation and aggressive asset management, the Company partners with premium brands such as Marriott^®, Ritz-Carlton^®, Westin^®, Sheraton^®, W^®, St. Regis^®, The Luxury Collection^®, Hyatt^®, Fairmont^®, Hilton^®, Swissôtel^®, ibis^® and Novotel^®, as well as independent brands. For additional information, please visit the Company’s website at www.hosthotels.com.

Note: This press release contains forward-looking statements within the meaning of federal securities regulations. These forward-looking statements include forecast results and are identified by their use of terms and phrases such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “plan,” “predict,” “project,” “will,” “continue” and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: the duration and scope of the COVID-19 pandemic and its short and longer-term impact on the demand for travel, transient and group business, and levels of consumer confidence; actions governments, businesses and individuals take in response to the pandemic, including limiting or banning travel; the impact of the pandemic and actions taken in response to the pandemic on global and regional economies, travel, and economic activity, including the duration and magnitude of its impact on unemployment rates, business investment and consumer discretionary spending; the pace of recovery when the COVID-19 pandemic subsides; general economic uncertainty in U.S. markets where we own hotels and a worsening of economic conditions or low levels of economic growth in these markets; the effects of steps we and our hotel managers take to reduce operating costs in response to the COVID-19 pandemic; other changes (apart from the COVID-19 pandemic) in national and local economic and business conditions and other factors such as natural disasters and weather that will affect occupancy rates at our hotels and the demand for hotel products and services; the impact of geopolitical developments outside the U.S. on lodging demand; volatility in global financial and credit markets; operating risks associated with the hotel business; risks and limitations in our operating flexibility associated with the level of our indebtedness and our ability to meet covenants in our debt agreements; risks associated with our relationships with property managers and joint venture partners; our ability to maintain our properties in a first-class manner, including meeting capital expenditure requirements; the effects of hotel renovations on our hotel occupancy and financial results; our ability to

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compete effectively in areas such as access, location, quality of accommodations and room rate structures; risks associated with our ability to complete acquisitions and dispositions and develop new properties and the risks that acquisitions and new developments may not perform in accordance with our expectations; our ability to continue to satisfy complex rules in order for us to remain a REIT for federal income tax purposes; risks associated with our ability to effectuate our dividend policy, including factors such as operating results and the economic outlook influencing our board’s decision whether to pay further dividends at levels previously disclosed or to use available cash to make special dividends; and other risks and uncertainties associated with our business described in the Company’s annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K filed with the SEC. 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 November 4, 2020 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.

*** Tables to Follow ***

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Host Hotels & Resorts, Inc., herein referred to as “we,” “Host Inc.,” or the “Company,” is a self-managed and self-administered real estate investment trust that owns hotel properties. We conduct our operations as an umbrella partnership REIT through an operating partnership, Host Hotels & Resorts, L.P. (“Host LP”), of which we are the sole general partner. When distinguishing between Host Inc. and Host LP, the primary difference is approximately 1% of the partnership interests in Host LP held by outside partners as of September 30, 2020, which is non-controlling interests in Host LP in our consolidated balance sheets and is included in net (income) loss attributable to non-controlling interests in our consolidated statements of operations. Readers are encouraged to find further detail regarding our organizational structure in our annual report on Form 10-K.

 

 

 

 

 

 

 

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HOST HOTELS & RESORTS, INC.

Condensed Consolidated Balance Sheets

(unaudited, in millions, except shares and per share amounts)

    

 

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HOST HOTELS & RESORTS, INC.

Condensed Consolidated Statements of Operations

(unaudited, in millions, except per share amounts)

 

          

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HOST HOTELS & RESORTS, INC.

Earnings (Loss) per Common Share

(unaudited, in millions, except per share amounts)

 

 

 

 

 

 

  

 

 

 

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HOST HOTELS & RESORTS, INC.

Hotel Operating Data for Consolidated Hotels ⁽¹⁾⁽²⁾

All Owned Hotels (pro forma) by Location in Constant US$

 

 

All Owned Hotels (pro forma) in Nominal US$

 

 

 

 

 

 

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HOST HOTELS & RESORTS, INC.

Hotel Operating Data for Consolidated Hotels ⁽¹⁾⁽²⁾

All Owned Hotels (pro forma) by Location in Constant US$

 

 

 

 

All Owned Hotels (pro forma) in Nominal US$

 

___________

 

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HOST HOTELS & RESORTS, INC.

Schedule of All Owned Hotel Pro Forma Results ⁽¹⁾

(unaudited, in millions, except hotel statistics)

 

 

 

 

 

 

 

 

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HOST HOTELS & RESORTS, INC.

Reconciliation of Net Income (Loss) to

EBITDA, EBITDAre and Adjusted EBITDAre ⁽¹⁾

(unaudited, in millions)

 

 

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HOST HOTELS & RESORTS, INC.

Reconciliation of Diluted Earnings (Loss) per Common Share to

NAREIT and Adjusted Funds From Operations per Diluted Share ⁽¹⁾

(unaudited, in millions, except per share amounts)

  

 

 

 

 

 

 

 

 

 

 

 

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HOST HOTELS & RESORTS, INC.

Notes to Financial Information

 

 

All Owned Hotel Operating Statistics and Results

To facilitate a quarter-to-quarter comparison of our operations, we typically present certain operating statistics and operating results for the periods included in this presentation on a comparable hotel basis (discussed in “Comparable Hotel Operating Statistics” below). However, due to the COVID-19 pandemic and its effects on operations there is little comparability between periods. For this reason, we are temporarily suspending our comparable hotel presentation and instead present hotel operating results for all consolidated hotels and, to facilitate comparisons between periods, we are presenting results on a pro forma basis, including the following adjustments: (1) operating results are presented for all consolidated hotels owned as of September 30, 2020, but do not include the results of operations for properties sold in 2019 or through the reporting date; and (2) operating results for acquisitions in the current and prior year are reflected for full calendar years, to include results for periods prior to our ownership. For these hotels, since the year-over-year comparison includes periods prior to our ownership, the changes will not necessarily correspond to changes in our actual results.

Comparable Hotel Operating Statistics

The following discusses our typical presentation of comparable hotels; however, this method is not being used in the current presentation due to the impact of COVID-19:

To facilitate a quarter-to-quarter comparison of our operations, we typically present certain operating statistics (i.e., Total RevPAR, RevPAR, average daily rate and average occupancy) and operating results (revenues, expenses, hotel EBITDA and associated margins) for the periods included in this report on a comparable hotel basis in order to enable our investors to better evaluate our operating performance.

We define our comparable hotels as those:

(i) that are owned or leased by us at the end of the reporting periods being compared; and

(ii) that have not sustained substantial property damage or business interruption, or undergone large-scale capital projects (as further defined below) during the reporting periods being compared.

The hotel business is capital-intensive and renovations are a regular part of the business. Generally, hotels under renovation remain comparable hotels. A large-scale capital project that would cause a hotel to be excluded from our comparable hotel set is an extensive renovation of several core aspects of the hotel, such as rooms, meeting space, lobby, bars, restaurants and other public spaces. Both quantitative and qualitative factors are taken into consideration in determining if the renovation would cause a hotel to be removed from the comparable hotel set, including unusual or exceptional circumstances such as: a reduction or increase in room count, rebranding, a significant alteration of the business operations, or the closing of the hotel during the renovation.

Historically, we have not included an acquired hotel in our comparable hotel set until the operating results for that hotel have been included in our consolidated results for one full calendar year. For example, we acquired the 1 Hotel South Beach in February 2019 and therefore it was not included in our comparable hotel set for 2019. We, however, made a change to this policy effective January 1, 2020, which is explained below under “2020 Comparable Hotel Definition Change.”

Hotels that we sell are excluded from the comparable hotel set once the transaction has closed. Similarly, hotels are excluded from our comparable hotel set from the date that they sustain substantial property damage or business interruption or commence a large-scale capital project. In each case, these hotels are returned to the comparable hotel set when the operations of the hotel have been included in our consolidated results for one full calendar year after completion of the repair of the property damage or cessation of the business interruption, or the completion of large-scale capital projects, as applicable.

2020 Comparable Hotel Definition Change

Effective January 1, 2020, the Company adjusted its definition of comparable hotels to include recent acquisitions on a pro forma basis assuming they have comparable operating environments. Operating results for acquisitions in the current and prior year will be reflected for full calendar years and will include results for periods prior to Company ownership. Management believes this change will provide investors a better understanding of underlying growth trends for the Company’s current portfolio. As a result, the 1 Hotel South Beach would have been included in the comparable hotel set for 2020.

Constant US$ and Nominal US$

Operating results denominated in foreign currencies are translated using the prevailing exchange rates on the date of the transaction, or monthly based on the weighted average exchange rate for the period. For comparative purposes, we also present the RevPAR results for the prior year assuming the results of our foreign operations were translated using the same exchange rates that were effective for the comparable periods in the current year, thereby eliminating the effect of currency fluctuation for the year-over-year comparisons. We believe this presentation is useful to investors as it provides clarity with respect to growth in RevPAR in the local currency of the hotel consistent with the way we would evaluate our domestic portfolio. However, the estimated effect of changes in foreign currency has been

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HOST HOTELS & RESORTS, INC.

Notes to Financial Information

 

reflected in the results of net income (loss), EBITDA, Adjusted EBITDAre, diluted earnings (loss) per common share and Adjusted FFO per diluted share. Nominal US$ results include the effect of currency fluctuations, consistent with our financial statement presentation.

Non-GAAP Financial Measures

Included in this press release are certain “non-GAAP financial measures,” which are measures of our historical or future financial performance that are not calculated and presented in accordance with GAAP, within the meaning of applicable SEC rules. They are as follows: (i) FFO and FFO per diluted share (both NAREIT and Adjusted), (ii) EBITDA, (iii) EBITDAre and Adjusted EBITDAre, (iv) All Owned Hotel Property Level Operating Results (v) Hotel-level operating loss and (vi) Cash burn. The following discussion defines these measures and presents why we believe they are useful supplemental measures of our performance.

NAREIT FFO and NAREIT FFO per Diluted Share

We present NAREIT FFO and NAREIT FFO per diluted share as non-GAAP measures of our performance in addition to our earnings per share (calculated in accordance with GAAP). We calculate NAREIT FFO per diluted share as our NAREIT FFO (defined as set forth below) for a given operating period, as adjusted for the effect of dilutive securities, divided by the number of fully diluted shares outstanding during such period, in accordance with NAREIT guidelines. Effective January 1, 2019, we adopted NAREIT’s definition of FFO included in NAREIT’s Funds From Operations White Paper – 2018 Restatement. NAREIT defines FFO as net income (calculated in accordance with GAAP) excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, impairment write-downs of certain real estate assets and investments and adjustments for consolidated partially-owned entities and unconsolidated affiliates. Adjustments for consolidated partially-owned entities and unconsolidated affiliates are calculated to reflect our pro rata share of the FFO of those entities on the same basis.

We believe that NAREIT FFO per diluted share is a useful supplemental measure of our operating performance and that the presentation of NAREIT FFO per diluted share, when combined with the primary GAAP presentation of earnings per share, provides beneficial information to investors. By excluding the effect of real estate depreciation, amortization, impairment expense and gains and losses from sales of depreciable real estate, all of which are based on historical cost accounting and which may be of lesser significance in evaluating current performance, we believe that such measures can facilitate comparisons of operating performance between periods and with other REITs, even though NAREIT FFO per diluted share does not represent an amount that accrues directly to holders of our common stock. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. As noted by NAREIT in its Funds From Operations White Paper – 2018 Restatement, the primary purpose for including FFO as a supplemental measure of operating performance of a REIT is to address the artificial nature of historical cost depreciation and amortization of real estate and real estate-related assets mandated by GAAP. For these reasons, NAREIT adopted the FFO metric in order to promote a uniform industry-wide measure of REIT operating performance.

Adjusted FFO per Diluted Share

We also present Adjusted FFO per diluted share when evaluating our performance because management believes that the exclusion of certain additional items described below provides useful supplemental information to investors regarding our ongoing operating performance. Management historically has made the adjustments detailed below in evaluating our performance, in our annual budget process and for our compensation programs. We believe that the presentation of Adjusted FFO per diluted share, when combined with both the primary GAAP presentation of earnings per share and FFO per diluted share as defined by NAREIT, provides useful supplemental information that is beneficial to an investor’s understanding of our operating performance. We adjust NAREIT FFO per diluted share for the following items, which may occur in any period, and refer to this measure as Adjusted FFO per diluted share:

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HOST HOTELS & RESORTS, INC.

Notes to Financial Information

 

In unusual circumstances, we also may adjust NAREIT FFO for gains or losses that management believes are not representative of the Company’s current operating performance. For example, in 2017, as a result of the reduction of the U.S. federal corporate income tax rate from 35% to 21% by the Tax Cuts and Jobs Act, we remeasured our domestic deferred tax assets as of December 31, 2017 and recorded a one-time adjustment to reduce our deferred tax assets and to increase the provision for income taxes by approximately $11 million. We do not consider this adjustment to be reflective of our on-going operating performance and, therefore, excluded this item from Adjusted FFO.

EBITDA

Earnings before Interest Expense, Income Taxes, Depreciation and Amortization (“EBITDA”) is a commonly used measure of performance in many industries. Management believes EBITDA provides useful information to investors regarding our results of operations because it helps us and our investors evaluate the ongoing operating performance of our properties after removing the impact of the Company’s capital structure (primarily interest expense) and its asset base (primarily depreciation and amortization). Management also believes the use of EBITDA facilitates comparisons between us and other lodging REITs, hotel owners that are not REITs and other capital-intensive companies. Management uses EBITDA to evaluate property-level results and as one measure in determining the value of acquisitions and dispositions and, like FFO and Adjusted FFO per diluted share, it is widely used by management in the annual budget process and for our compensation programs.

EBITDAre and Adjusted EBITDAre

We present EBITDAre in accordance with NAREIT guidelines, as defined in its September 2017 white paper “Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate,” to provide an additional performance measure to facilitate the evaluation and comparison of the Company’s results with other REITs. NAREIT defines EBITDAre as net income (calculated in accordance with GAAP) excluding interest expense, income tax, depreciation and amortization, gains or losses on disposition of depreciated property (including gains or losses on change of control), impairment write-downs of depreciated property and of investments in unconsolidated affiliates caused by a decrease in value of depreciated property in the affiliate, and adjustments to reflect the entity’s pro rata share of EBITDAre of unconsolidated affiliates.

We make additional adjustments to EBITDAre when evaluating our performance because we believe that the exclusion of certain additional items described below provides useful supplemental information to investors regarding our ongoing operating performance. We believe that the presentation of Adjusted EBITDAre, when combined with the primary GAAP presentation of net income, is beneficial to an investor’s understanding of our operating performance. Adjusted EBITDAre also is similar to the measure used to calculate certain credit ratios for our credit facility and senior notes. We adjust EBITDAre for the following items, which may occur in any period, and refer to this measure as Adjusted EBITDAre:

In unusual circumstances, we also may adjust EBITDAre for gains or losses that management believes are not representative of the Company’s current operating performance. The last such adjustment was a 2013 exclusion of a gain from an eminent domain claim.

Limitations on the Use of NAREIT FFO per Diluted Share, Adjusted FFO per Diluted Share, EBITDA, EBITDAre and Adjusted EBITDAre

We calculate NAREIT FFO per diluted share in accordance with standards established by NAREIT, which may not be comparable to measures calculated by other companies that do not use the NAREIT definition of FFO or do not calculate FFO per diluted share in

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HOST HOTELS & RESORTS, INC.

Notes to Financial Information

 

accordance with NAREIT guidance. In addition, although FFO per diluted share is a useful measure when comparing our results to other REITs, it may not be helpful to investors when comparing us to non-REITs. We also calculate Adjusted FFO per diluted share, which is not in accordance with NAREIT guidance and may not be comparable to measures calculated by other REITs. EBITDA, EBITDAre and Adjusted EBITDAre, as presented, may also not be comparable to measures calculated by other companies. This information should not be considered as an alternative to net income, operating profit, cash from operations or any other operating performance measure calculated in accordance with GAAP. Cash expenditures for various long-term assets (such as renewal and replacement capital expenditures), interest expense (for EBITDA, EBITDAre and Adjusted EBITDAre purposes only), severance expense related to significant property-level restructuring and other items have been and will be made and are not reflected in the EBITDA, EBITDAre, Adjusted EBITDAre, NAREIT FFO per diluted share and Adjusted FFO per diluted share presentations. Management compensates 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 consolidated statements of operations and consolidated statements of cash flows in the Company’s quarterly report on Form 10-Q (“Statements of Cash Flows”) include interest expense, capital expenditures, and other excluded items, all of which should be considered when evaluating our performance, as well as the usefulness of our non-GAAP financial measures. Additionally, NAREIT FFO per diluted share, Adjusted FFO per diluted share, EBITDA, EBITDAre and Adjusted EBITDAre should not be considered as a measure of our liquidity or indicative of funds available to fund our cash needs, including our ability to make cash distributions. In addition, NAREIT FFO per diluted share and Adjusted FFO per diluted share do not measure, and should not be used as a measure of, amounts that accrue directly to stockholders’ benefit.

Similarly, EBITDAre, Adjusted EBITDAre, NAREIT FFO and Adjusted FFO per diluted share include adjustments for the pro rata share of our equity investments and NAREIT FFO and Adjusted FFO per diluted share include adjustments for the pro rata share of non-controlling partners in consolidated partnerships. Our equity investments consist of interests ranging from 11% to 67% in seven domestic and international partnerships that own a total of 10 properties and a vacation ownership development. Due to the voting rights of the outside owners, we do not control and, therefore, do not consolidate these entities. The non-controlling partners in consolidated partnerships primarily consist of the approximate 1% interest in Host LP held by outside partners, and a 15% interest held by outside partners in a partnership owning one hotel for which we do control the entity and, therefore, consolidate its operations. These pro rata results for NAREIT FFO and Adjusted FFO per diluted share, EBITDAre and Adjusted EBITDAre were calculated as set forth in the definitions above. Readers should be cautioned that the pro rata results presented in these measures for consolidated partnerships (for NAREIT FFO and Adjusted FFO per diluted share) and equity investments may not accurately depict the legal and economic implications of our investments in these entities.

Hotel Property Level Operating Results

We present certain operating results for our hotels, such as hotel revenues, expenses, food and beverage profit, and EBITDA (and the related margins), on a hotel-level pro forma basis as supplemental information for our investors. Our hotel results reflect the operating results of our hotels as discussed in “All Owned Hotel Operating Statistics and Results” above. We present all owned hotel pro forma EBITDA to help us and our investors evaluate the ongoing operating performance of our hotels after removing the impact of the Company’s capital structure (primarily interest expense) and its asset base (primarily depreciation and amortization expense). Corporate-level costs and expenses also are removed to arrive at property-level results. We believe these property-level results provide investors with supplemental information about the ongoing operating performance of our hotels. All owned hotel pro forma results are presented both by location and for the Company’s properties in the aggregate. While severance expense is not uncommon at the individual property level in the normal course of business, we eliminate from our hotel level operating results severance costs related to broad-based and significant property-level restructuring that is not considered to be within the normal course of business, as we believe this provides useful supplemental information that is beneficial to an investor’s understanding of our ongoing operating performance. We also eliminate depreciation and amortization expense because, even though depreciation and amortization expense are property-level expenses, these non-cash expenses, which are based on historical cost accounting for real estate assets, implicitly assume that the value of real estate assets diminishes predictably over time. As noted earlier, because real estate values have historically risen or fallen with market conditions, many real estate industry investors have considered presentation of historical cost accounting for operating results to be insufficient.

Because of the elimination of corporate-level costs and expenses, gains or losses on disposition, certain severance expenses and depreciation and amortization expense, the hotel operating results we present do not represent our total revenues, expenses, operating profit or net income and should not be used to evaluate our performance as a whole. Management compensates 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 consolidated statements of operations include such amounts, all of which should be considered by investors when evaluating our performance.

While management believes that presentation of all owned hotel results is a measure that provides useful information in evaluating our ongoing performance, this measure is not used to allocate resources or to assess the operating performance of each of our hotels, as these decisions are based on data for individual hotels and are not based on all owned hotel results in the aggregate. For these reasons, we believe all owned hotel operating results, when combined with the presentation of GAAP operating profit, revenues and expenses, provide useful information to investors and management.

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HOST HOTELS & RESORTS, INC.

Notes to Financial Information

 

COVID-19 Non-GAAP Reporting Measures 

Hotel-level Operating Loss.  We present hotel-level operating loss because management believes this metric is helpful to investors to evaluate the monthly operating performance of our properties during the COVID-19 pandemic. We further adjust All Owned Hotel Pro Forma EBITDA to reflect the benefits for furloughed employees in the month that they are provided to the employees at our hotels, replacing the related GAAP expense accrual. While furlough costs may arise in various situations, the furlough costs incurred during the COVID-19 pandemic are unusually large and not reflective of how wages and benefits are generally accrued and paid. Therefore management adjusts All Owned Hotel Pro Forma EBITDA to include the furlough costs based on the timing that they are provided to the employees of our operators to better reflect monthly costs and evaluate the hotel performance. We accrue for the anticipated furlough costs when our hotel managers have committed to the continuation of these benefits regardless of the timing of the benefits. For example, in March 2020 we accrued $35 million for April and May benefits for furloughed employees at our Marriott- and Hyatt-managed hotels. In June 2020, we accrued $32 million for the July, August and September benefits for our Marriott-managed hotels. As a result, our GAAP operating results reflect the timing of the commitment rather than the actual month of the benefits. While the net impact of the accrual is not significant in the evaluation of our hotel operations on a quarterly basis, we adjust for the timing of the accrual on a monthly basis to include the expense in the month that the furlough benefits are provided in order to evaluate the month-to-month changes in operating results at our properties exclusive of the timing of the accrual. Hotel-level operating loss is not intended to be, and should not be used as, a substitute for GAAP net income (loss). Because of the elimination of corporate-level costs and expenses, gains or losses on disposition and depreciation and amortization expense, the hotel-level monthly operating results we present do not represent our total operating results and should not be used to evaluate our performance as a whole. Management compensates 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 consolidated statements of operations include such amounts, all of which should be considered by investors when evaluating our performance. The following presents the reconciliation of the differences between our non-GAAP financial measure, hotel-level operating loss, and net loss, the financial measure calculated and presented in accordance with GAAP that we consider most directly comparable:

Cash Burn. We present cash burn because management believes this metric is helpful to investors to evaluate the Company's ability to continue to fund operations during periods where hotels have suspended operations or are operating at very low levels of occupancy due to the COVID-19 pandemic. The Company defines cash burn as net cash from operating activities adjusted for (i) capital expenditures, (ii) changes in short term assets and liabilities and (iii) contributions to equity investments, as further described below. Cash burn is not intended to be, and should not be used as a substitute for GAAP cash flow as it does not reflect  the issuance or repurchase of equity, the payment of dividends, the issuance or repayment of debt, or other investing activities such as the purchase or sale of hotels. Adjustments include:

PAGE 21 OF 22

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HOST HOTELS & RESORTS, INC.

Notes to Financial Information

 

The following presents the reconciliation of our net cash used in operating activities from our statements of cash flows to cash burn (in millions):

 

 

In a scenario in which hotel operational performance is commensurate with the third quarter 2020 levels, the following presents the reconciliation of monthly cash used in operating activities to cash burn (in millions):

 

PAGE 22 OF 22

Supplemental Financial Information September 30, 2020 Exhibit 99.2

Table of Contents OVERVIEW 03 About Host Hotels & Resorts 04 Analyst Coverage 05 Forward-Looking Statements 06 All Owned Hotel Operating Statistics and Non-GAAP Financial Measures 07 PROPERTY LEVEL DATA 08 Hotel Results by Location in Nominal US$ 09 Top 40 Domestic Hotels by Total RevPAR for the Year Ended December 31, 2019 17 Top 40 Domestic Hotels by Total RevPAR Reconciliation of Hotel Net Income (Loss) to Hotel EBITDA and EBITDAre 18 CAPITALIZATION 19 Comparative Capitalization 20 Consolidated Debt Summary as of September 30, 2020 21 Consolidated Debt Maturity as of September 30, 2020 22 Ground Lease Summary as of December 31, 2019 23 2019 Property Dispositions 24 COVID-19 DATA 25 Credit Facility Amendment 26 Credit Facility and Senior Notes Financial Performance Tests 27 Reconciliation of GAAP Leverage Ratio to Credit Facility Leverage Ratio 28 Reconciliation of GAAP Interest Coverage Ratio to Credit Facility Unsecured Interest Coverage Ratio 29 Reconciliation of GAAP Interest Coverage Ratio to Credit Facility Fixed Charge Coverage Ratio 30 Reconciliation of GAAP Indebtedness Test to Senior Notes Indenture Indebtedness Test 31 Reconciliation of GAAP Secured Indebtedness Test to Senior Notes Indenture Secured Indebtedness Test 32 Reconciliation of GAAP Interest Coverage Ratio to Senior Notes Indenture EBITDA-to-Interest Coverage Ratio 33 Reconciliation of GAAP Assets to Indebtedness Test to Senior Notes Unencumbered Assets to Unsecured Indebtedness Test 34 Hotels with Suspended Operations 35 NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION 36 All Owned Hotel Operating Statistics and Results 37 Non-GAAP Financial Measures 37

OVERVIEW PROPERTY LEVEL DATA CAPITALIZATION COVID-19 DATA NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION

About host Hotels & Resorts Premier US LODGING REIT LUXURY & UPPER UPSCALE CONSOLIDATED HOTELS PORTFOLIO 79 46,100 22 Hotels Rooms TOP US MARKETS S&P 500 $7.7 BILLION $11.0 BILLION COMPANY Market Cap(1) ENTERPRISE VALUE(1) Based on market cap as of September 30, 2020. See Comparative Capitalization for calculation.

Analyst Coverage The Company is followed by the analysts listed above.  Please note that any opinions, estimates or forecasts regarding the Company’s performance made by these analysts are theirs alone and do not represent opinions, forecasts or predictions of the Company or its management.  The Company does not by its reference above imply its endorsement of or concurrence with any of such analysts’ information, conclusions or recommendations. BAIRD Mike Bellisario 414-298-6130 mbellisario@rwbaird.com DEUTSCHE BANK SECURITIES Chris Woronka 212-250-9376 Chris.Woronka@db.com RAYMOND JAMES & ASSOCIATES Bill Crow 727-567-2594 Bill.crow@raymondjames.com BANK OF AMERICA MERRILL LYNCH Shaun Kelley 646-855-1005 shaun.kelley@baml.com EVERCORE ISI Richard Hightower 212-752-0886 rhightower@evercoreisi.com RBC CAPITAL MARKETS Wes Golladay 440-715-2650 Wes.Golladay@rbccm.com BARCLAYS CAPITAL Anthony Powell 212-526-8768 anthony.powell@barclays.com GOLDMAN SACHS & CO. Stephen Grambling 212-902-7832 Stephen.Grambling@gs.com STIFEL, NICOLAUS & CO. Simon Yarmak 443-224-1345 yarmaks@stifel.com BMO CAPITAL MARKETS Ari Klein 212-885-4103 ari.klein@bmo.com GREEN STREET ADVISORS Lukas Hartwich 949-640-8780 lhartwich@greenstreetadvisors.com TRUIST C. Patrick Scholes 212-319-3915 Patrick.scholes@suntrust.com BTIG James Sullivan 212-738-6139 jsullivan@btig.com JEFFERIES David Katz 212-323-3355 dkatz@jefferies.com UBS SECURITIES LLC Robin Farley 212-713-2060 Robin.farley@ubs.com CAPITAL ONE SECURITIES Neil Malkin 571-633-8191 neil.malkin@capitalone.com J.P. MORGAN SECURITIES Joe Greff 212-622-0548 Joseph.greff@jpmorgan.com WELLS FARGO SECURITIES LLC Dori Kesten 617-603-4233 dori.kesten@wellsfargo.com CITI INVESTMENT RESEARCH Smedes Rose 212-816-6243 smedes.rose@citi.com MORGAN STANLEY & CO. Thomas Allen 212-761-3356  Thomas.Allen@morganstanley.com WOLFE RESEARCH Jared Shojaian 214-699-4506 jshojaian@wolferesearch.com

ABOUT HOST HOTELS & RESORTS Host Hotels& Resorts, Inc., herein referred to as “we,” “Host Inc.,” or the “Company,” is a self-managed and self-administered REIT that owns hotel properties. We conduct our operations as an umbrella partnership REIT through an operating partnership, Host Hotels & Resorts, L.P. (“Host LP”), of which we are the sole general partner. When distinguishing between Host Inc. and Host LP, the primary difference is approximately 1% of the partnership interests in Host LP held by outside partners as of September 30, 2020, which is non-controlling interests in Host LP in our consolidated balance sheets and is included in net (income) loss attributable to non-controlling interests in our consolidated statements of operations. Readers are encouraged to find further detail regarding our organizational structure in our annual report on Form 10-K. Forward-Looking Statements This supplemental information contains forward-looking statements within the meaning of federal securities regulations. These forward-looking statements include forecast results and are identified by their use of terms and phrases such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “plan,” “predict,” “project,” “will,” “continue” and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: the duration and scope of the COVID-19 pandemic and its short and longer-term impact on the demand for travel, transient and group business, and levels of consumer confidence; actions governments, businesses and individuals take in response to the pandemic, including limiting or banning travel; the impact of the pandemic and actions taken in response to the pandemic on global and regional economies, travel, and economic activity, including the duration and magnitude of its impact on unemployment rates, business investment and consumer discretionary spending; the pace of recovery when the COVID-19 pandemic subsides; general economic uncertainty in U.S. markets where we own hotels and a worsening of economic conditions or low levels of economic growth in these markets; the effects of steps we and our hotel managers take to reduce operating costs in response to the COVID-19 pandemic; other changes (apart from the COVID-19 pandemic) in national and local economic and business conditions and other factors such as natural disasters, and weather that will affect occupancy rates at our hotels and the demand for hotel products and services; the impact of geopolitical developments outside the U.S. on lodging demand; volatility in global financial and credit markets; operating risks associated with the hotel business; risks and limitations in our operating flexibility associated with the level of our indebtedness and our ability to meet covenants in our debt agreements; risks associated with our relationships with property managers and joint venture partners; our ability to maintain our properties in a first-class manner, including meeting capital expenditure requirements; the effects of hotel renovations on our hotel occupancy and financial results; our ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; risks associated with our ability to complete acquisitions and dispositions and develop new properties and the risks that acquisitions and new developments may not perform in accordance with our expectations; our ability to continue to satisfy complex rules in order for us to remain a REIT for federal income tax purposes; risks associated with our ability to effectuate our dividend policy, including factors such as operating results and the economic outlook influencing our board’s decision whether to pay further dividends at levels previously disclosed or to use available cash to make special dividends; and other risks and uncertainties associated with our business described in the Company’s annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K filed with the SEC. 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 supplemental presentation is as of November 4, 2020, 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. overview

To facilitate a quarter-to-quarter comparison of our operations, we typically present certain operating statistics and operating results for the periods included in this supplemental information on a comparable hotel basis. However, due to the COVID-19 pandemic and its effects on operations, there is little comparability between periods. For this reason, we are temporarily suspending our comparable hotel presentation and instead present hotel operating results for all consolidated hotels and, to facilitate comparisons between periods, we are presenting results on a pro forma basis including the following adjustments: (1) operating results are presented for all consolidated hotels owned as of September 30, 2020 but do not include the results of operations for properties sold in 2019 or through the reporting date; and (2) operating results for acquisitions in the current and prior year are reflected for full calendar years, to include results for periods prior to our ownership. For these hotels, since the year-over-year comparison includes periods prior to our ownership, the changes will not necessarily correspond to changes in our actual results. See the Notes to Supplemental Financial Information for further information on these pro forma statistics and the limitations on their use. Included in this supplemental information are certain “non-GAAP financial measures,” which are measures of our historical or future financial performance that are not calculated and presented in accordance with GAAP (U.S. generally accepted accounting principles), within the meaning of applicable SEC rules. They are as follows: (i) EBITDA (for both the Company and hotel level), (ii) EBITDAre and Adjusted EBITDAre, (iii) Net Operating Income (NOI) and (iv) All Owned Hotel Property Level Operating Results. Also included are reconciliations to the most directly comparable GAAP measures. See the Notes to Supplemental Financial Information for definitions of these measures, why we believe these measures are useful and limitations on their use. Also included in this supplemental information is our leverage ratio, unsecured interest coverage ratio and fixed charge coverage ratio, calculated in accordance with our credit facility, along with our EBITDA to interest coverage ratio, indenture indebtedness test, indenture secured indebtedness test, and indenture unencumbered assets to unsecured indebtedness test, calculated in accordance with our senior notes indenture covenants. Included with these ratios are reconciliations calculated in accordance with GAAP. See the Notes to Supplemental Financial Information for information on how these supplemental measures are calculated, why we believe they are useful and limitations on their use. All Owned Hotel Operating Statistics and Non-GAAP Financial Measures

Overview Property level data capitalization Covid-19 data NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION

Hotel Results by Location in Nominal US$ (unaudited, in millions, except hotel statistics and per room basis) Quarter ended September 30, 2020 Location No. of Properties No. of Rooms Average Room Rate Average Occupancy Percentage RevPAR(1) Total Revenues Total Revenues per Available Room(2) Hotel Net Income (Loss) Hotel EBITDA (3) Jacksonville 1 446 $419.23 43.3% $181.67 $15.7 $383.23 $5.0 $7.5 Florida Gulf Coast 5 1,842 288.56 33.7 97.38 30.8 181.81 (5.4) 5.4 Miami 3 1,276 209.34 26.8 56.08 12.0 98.65 (8.7) (2.4) Maui/Oahu 4 1,987 172.74 11.3 19.47 4.0 22.11 (24.4) (11.3) Phoenix 3 1,654 201.12 22.0 44.33 16.8 110.66 (13.8) 0.5 Los Angeles 4 1,726 193.52 25.8 50.02 10.5 65.89 (8.6) (3.0) San Francisco/San Jose 7 4,528 165.35 13.1 21.59 11.3 27.13 (36.2) (15.3) San Diego 3 3,288 203.85 15.6 31.78 15.9 52.66 (24.9) (5.5) New York 3 4,261 187.37 11.0 20.70 9.1 23.16 (53.5) (25.3) Atlanta 4 1,682 139.03 31.6 43.89 9.4 60.57 (4.2) 1.3 Orange County 2 925 163.24 27.2 44.34 5.1 60.04 (2.6) 0.3 Philadelphia 2 810 147.01 32.2 47.36 5.1 68.09 (3.1) 0.3 New Orleans 1 1,333 112.64 26.6 30.00 4.4 35.57 (3.9) (0.7) Houston 4 1,716 105.12 32.4 34.07 7.6 47.93 (6.6) (0.7) Northern Virginia 3 1,252 157.90 19.7 31.11 5.0 43.91 (4.5) (0.9) Washington, D.C. (CBD) (5) 5 3,238 163.25 6.3 10.22 3.7 12.42 (23.8) (11.3) Orlando 1 2,004 150.91 3.3 5.04 2.7 14.64 (14.2) (4.6) Seattle 2 1,315 172.32 6.1 10.48 1.5 12.33 (8.8) (4.5) Denver 3 1,340 122.10 21.5 26.24 4.3 34.58 (5.4) (1.0) San Antonio 2 1,512 125.27 13.6 17.07 3.2 22.72 (7.9) (1.2) Boston 3 2,715 135.30 4.9 6.62 2.3 9.43 (17.6) (8.4) Chicago 4 1,816 124.78 17.6 21.95 4.5 26.96 (11.9) (6.1) Other 6 2,509 119.23 22.3 26.58 7.8 33.80 (10.5) (3.3) Other property level (4) 3.8 0.6 0.6 Domestic 75 45,175 173.14 17.3 30.00 196.5 46.33 (294.9) (89.6) International 5 1,499 88.93 11.3 10.08 1.9 13.50 (3.9) (1.6) All Locations - Nominal US$ 80 46,674 $171.35 17.1% $29.36 $198.4 $45.27 $(298.8) $(91.2) Severance at hotel properties — — (42.8) Gain on sale of property and corporate level income/expense (3) — (17.2) (22.5) Total 80 46,674 — — — $198.4 — $(316.0) $(156.5) RevPAR is the product of the average daily room rate charged and the average daily occupancy achieved. Total Revenue per Available Room (“Total RevPAR”) is a summary measure of hotel results calculated by dividing the sum of room, food and beverage and other ancillary service revenue by room nights available to guests for the period. It includes ancillary revenues not included within RevPAR. Certain items from our statement of operations are not allocated to individual properties, including interest on our senior notes, corporate and other expenses, and the provision for income taxes. These items are reflected below in “gain on sale of property and corporate level income/expense”. Refer to the table below for reconciliation of net income to EBITDA by location. Other property level includes certain ancillary revenues and related expenses, as well as non-income taxes on TRS leases. CBD refers to the central business district.

Hotel Results by Location in Nominal US$ Reconciliation of Hotel Net Income (Loss) to Hotel EBITDA (unaudited, in millions, except hotel statistics) Quarter ended September 30, 2020 Location No. of Properties No. of Rooms Hotel Net Income (Loss) Plus: Depreciation Plus: Interest Expense Plus: Income Tax Plus: Severance at hotel properties(1) Equals: Hotel EBITDA Jacksonville 1 446 $5.0 $2.3 $— $— $0.2 $7.5 Florida Gulf Coast 5 1,842 (5.4) 9.5 — — 1.3 5.4 Miami 3 1,276 (8.7) 6.0 — — 0.3 (2.4) Maui/Oahu 4 1,987 (24.4) 13.1 — — — (11.3) Phoenix 3 1,654 (13.8) 12.6 — — 1.7 0.5 Los Angeles 4 1,726 (8.6) 4.7 — — 0.9 (3.0) San Francisco/San Jose 7 4,528 (36.2) 18.3 — — 2.6 (15.3) San Diego 3 3,288 (24.9) 16.2 — — 3.2 (5.5) New York 3 4,261 (53.5) 12.7 — — 15.5 (25.3) Atlanta 4 1,682 (4.2) 5.3 — — 0.2 1.3 Orange County 2 925 (2.6) 1.9 — — 1.0 0.3 Philadelphia 2 810 (3.1) 3.1 — — 0.3 0.3 New Orleans 1 1,333 (3.9) 2.6 — — 0.6 (0.7) Houston 4 1,716 (6.6) 4.7 — — 1.2 (0.7) Northern Virginia 3 1,252 (4.5) 3.2 — — 0.4 (0.9) Washington, D.C. (CBD) 5 3,238 (23.8) 9.6 — — 2.9 (11.3) Orlando 1 2,004 (14.2) 7.4 — — 2.2 (4.6) Seattle 2 1,315 (8.8) 3.9 — — 0.4 (4.5) Denver 3 1,340 (5.4) 4.0 — — 0.4 (1.0) San Antonio 2 1,512 (7.9) 4.6 — — 2.1 (1.2) Boston 3 2,715 (17.6) 6.3 — — 2.9 (8.4) Chicago 4 1,816 (11.9) 5.5 — — 0.3 (6.1) Other 6 2,509 (10.5) 5.1 — — 2.1 (3.3) Other property level 0.6 — — — — 0.6 Domestic 75 45,175 (294.9) 162.6 — — 42.7 (89.6) International 5 1,499 (3.9) 2.2 — — 0.1 (1.6) All Locations - Nominal US$ 80 46,674 $(298.8) $164.8 $— $— $42.8 $(91.2) Severance at hotel properties — — — — (42.8) (42.8) Gain on sale of property and corporate level income/expense (17.2) 0.9 66.3 (72.5) — (22.5) Total 80 46,674 $(316.0) $165.7 $66.3 $(72.5) $— $(156.5) Effective for the third quarter of 2020 we remove severance from hotel property level operating results. See Notes to Supplemental Financial Information for more detail.

Hotel Results by Location in Nominal US$ (unaudited, in millions, except hotel statistics and per room basis) Quarter ended September 30, 2019 Location No. of Properties No. of Rooms Average Room Rate Average Occupancy Percentage RevPAR Total Revenues Total Revenues per Available Room Hotel Net Income Hotel EBITDA (1) Jacksonville 1 446 $363.69 69.0% $251.05 $21.2 $516.90 $3.8 $6.1 Florida Gulf Coast 5 1,842 242.93 61.6 149.63 49.2 290.64 (3.6) 5.0 Miami 3 1,276 235.65 73.9 174.18 35.7 294.09 0.2 5.8 Maui/Oahu 4 1,987 385.51 91.5 352.78 99.1 543.42 20.2 31.2 Phoenix 3 1,654 197.07 57.9 114.19 43.8 287.59 (10.3) 1.9 Los Angeles 4 1,726 238.54 87.3 208.32 48.2 303.73 6.0 10.9 San Francisco/San Jose 7 4,528 266.18 84.2 224.20 125.6 301.99 21.8 37.6 San Diego 3 3,288 256.92 83.5 214.41 112.8 372.78 24.3 38.6 New York 3 4,261 271.11 92.0 249.40 133.9 341.59 9.5 22.0 Atlanta 4 1,682 168.37 85.6 144.09 34.0 219.82 5.8 10.2 Orange County 2 925 207.20 82.8 171.54 23.2 273.03 5.4 7.1 Philadelphia 2 810 207.13 88.2 182.60 22.0 295.52 3.3 6.5 New Orleans 1 1,333 156.82 77.0 120.78 21.5 175.05 3.8 6.4 Houston 4 1,716 170.32 67.0 114.07 25.2 159.84 0.6 5.4 Northern Virginia 3 1,252 199.70 72.7 145.09 25.0 217.46 2.2 5.4 Washington, D.C. (CBD) 5 3,238 211.15 84.4 178.19 75.9 254.63 8.4 18.2 Orlando 1 2,004 155.29 59.2 91.97 42.7 231.78 2.8 8.7 Seattle 2 1,315 260.45 90.2 234.96 35.3 291.64 7.6 11.6 Denver 3 1,340 184.28 84.5 155.64 26.9 218.16 6.0 9.7 San Antonio 2 1,512 165.01 66.6 109.84 21.7 155.81 1.2 3.9 Boston 3 2,715 243.00 91.1 221.28 72.8 291.41 21.5 22.7 Chicago 4 1,816 220.91 85.5 188.78 43.8 264.29 8.0 13.2 Other 6 2,509 173.28 81.0 140.40 45.8 198.24 10.8 13.9 Other property level (2) 3.5 1.0 1.0 Domestic 75 45,175 232.34 80.7 187.46 1,188.8 285.10 160.3 303.0 International 5 1,499 159.14 75.9 120.86 23.0 166.88 5.0 7.3 All Locations - Nominal US$ 80 46,674 $230.13 80.5% $185.32 $1,211.8 $281.30 $165.3 $310.3 Pro forma adjustments (3) 50.0 — 13.5 Gain on sale of property and corporate level income/expense (1) — 206.7 257.4 Total 80 46,674 — — — $1,261.8 — $372.0 $581.2 Certain items from our statement of operations are not allocated to individual properties, including interest on our senior notes, corporate and other expenses, and the provision for income taxes. These items are reflected below in “gain on sale of property and corporate level income/expense”. Refer to the table below for reconciliation of net income to EBITDA by location. Other property level includes certain ancillary revenues and related expenses, as well as non-income taxes on TRS leases. Pro forma adjustments represent the following items: (i) the results of operations of our sold hotels, which operations are included in our condensed consolidated statements of operations as continuing operations and (ii) the results for periods prior to our ownership for hotels acquired during the presented periods.

Hotel Results by Location in Nominal US$ Reconciliation of Hotel Net Income to Hotel EBITDA (unaudited, in millions, except hotel statistics) Quarter ended September 30, 2019 Location No. of Properties No. of Rooms Hotel Net Income Plus: Depreciation Plus: Interest Expense Plus: Income Tax Pro forma adjustments (1) Equals: Hotel EBITDA Jacksonville 1 446 $3.8 $2.3 $— $— $— $6.1 Florida Gulf Coast 5 1,842 (3.6) 8.6 — — — 5.0 Miami 3 1,276 0.2 5.6 — — — 5.8 Maui/Oahu 4 1,987 20.2 11.0 — — — 31.2 Phoenix 3 1,654 (10.3) 12.2 — — — 1.9 Los Angeles 4 1,726 6.0 4.9 — — — 10.9 San Francisco/San Jose 7 4,528 21.8 15.8 — — — 37.6 San Diego 3 3,288 24.3 19.1 — — (4.8) 38.6 New York 3 4,261 9.5 12.5 — — — 22.0 Atlanta 4 1,682 5.8 4.7 — — (0.3) 10.2 Orange County 2 925 5.4 2.4 — — (0.7) 7.1 Philadelphia 2 810 3.3 3.2 — — — 6.5 New Orleans 1 1,333 3.8 2.6 — — — 6.4 Houston 4 1,716 0.6 4.8 — — — 5.4 Northern Virginia 3 1,252 2.2 3.2 — — — 5.4 Washington, D.C. (CBD) 5 3,238 8.4 9.8 — — — 18.2 Orlando 1 2,004 2.8 5.9 — — — 8.7 Seattle 2 1,315 7.6 4.0 — — — 11.6 Denver 3 1,340 6.0 3.7 — — — 9.7 San Antonio 2 1,512 1.2 2.7 — — — 3.9 Boston 3 2,715 21.5 7.5 — — (6.3) 22.7 Chicago 4 1,816 8.0 5.5 — — (0.3) 13.2 Other 6 2,509 10.8 4.2 — — (1.1) 13.9 Other property level 1.0 — — — — 1.0 Domestic 75 45,175 160.3 156.2 — — (13.5) 303.0 International 5 1,499 5.0 2.3 — — — 7.3 All Locations - Nominal US$ 80 46,674 $165.3 $158.5 $— $— $(13.5) $310.3 Pro forma adjustments — — — — 13.5 13.5 Gain on sale of property and corporate level income/expense 206.7 0.5 46.3 3.9 — 257.4 Total 80 46,674 $372.0 $159.0 $46.3 $3.9 $— $581.2 Pro forma adjustments represent the following items: (i) the results of operations of our sold hotels, which operations are included in our condensed consolidated statements of operations as continuing operations and (ii) the results for periods prior to our ownership for hotels acquired during the presented periods.

Hotel Results by Location in Nominal US$ (unaudited, in millions, except hotel statistics and per room basis) Year-to-date ended September 30, 2020 Location No. of Properties No. of Rooms Average Room Rate Average Occupancy Percentage RevPAR Total Revenues Total Revenues per Available Room Hotel Net Income (Loss) Hotel EBITDA (1) Jacksonville 1 446 $405.40 42.8% $173.66 $43.6 $356.40 $6.2 $13.2 Florida Gulf Coast 5 1,842 369.22 40.7 150.28 149.1 295.52 15.3 44.7 Miami 3 1,276 370.39 35.3 130.64 76.6 211.54 (5.3) 13.1 Maui/Oahu 4 1,987 415.84 29.7 123.66 97.7 179.81 (31.9) 5.3 Phoenix 3 1,654 317.49 32.0 101.46 108.1 238.55 (14.1) 25.7 Los Angeles 4 1,726 210.37 34.8 73.12 49.7 105.12 (25.6) (10.4) San Francisco/San Jose 7 4,528 266.39 25.5 67.87 122.1 98.41 (74.5) (16.2) San Diego 3 3,288 234.30 26.4 61.82 108.2 120.05 (53.1) 1.6 New York 3 4,261 190.05 32.4 61.49 102.3 87.59 (130.9) (76.7) Atlanta 4 1,682 171.23 34.7 59.48 42.2 91.63 (8.8) 7.1 Orange County 2 925 184.67 31.0 57.17 23.7 93.39 (5.7) 1.9 Philadelphia 2 810 160.15 35.2 56.35 19.5 88.08 (10.9) (1.4) New Orleans 1 1,333 176.44 30.6 54.04 28.6 78.28 (5.0) 3.5 Houston 4 1,716 145.80 35.9 52.30 36.2 76.89 (16.8) (1.1) Northern Virginia 3 1,252 187.00 26.7 50.00 27.4 79.88 (13.8) (3.8) Washington, D.C. (CBD) 5 3,238 223.18 21.5 48.07 61.0 68.76 (53.8) (22.2) Orlando 1 2,004 211.61 20.1 42.57 58.4 106.45 (14.5) 9.0 Seattle 2 1,315 191.36 20.4 38.98 20.0 55.62 (23.8) (11.4) Denver 3 1,340 145.92 26.5 38.63 20.9 56.80 (14.8) (2.4) San Antonio 2 1,512 167.34 20.6 34.54 21.3 51.30 (17.5) (3.0) Boston 3 2,715 173.40 19.3 33.48 37.9 50.97 (47.8) (25.9) Chicago 4 1,816 134.05 25.0 33.45 22.5 45.13 (37.1) (19.9) Other 6 2,509 146.76 31.0 45.50 42.7 62.09 (21.0) (4.8) Other property level (2) 15.5 3.4 3.4 Domestic 75 45,175 227.89 28.4 64.66 1,335.2 106.51 (601.8) (70.7) International 5 1,499 121.49 24.3 29.53 18.0 44.01 (8.5) (1.6) All Locations - Nominal US$ 80 46,674 $224.95 28.2% $63.53 $1,353.2 $104.51 $(610.3) $(72.3) Severance at hotel properties — — (43.6) Gain on sale of property and corporate level income/expense (1) — (64.7) (74.0) Total 80 46,674 — — — $1,353.2 — $(675.0) $(189.9) Certain items from our statement of operations are not allocated to individual properties, including interest on our senior notes, corporate and other expenses, and the provision for income taxes. These items are reflected below in “gain on sale of property and corporate level income/expense”. Refer to the table below for reconciliation of net income to EBITDA by location. Other property level includes certain ancillary revenues and related expenses, as well as non-income taxes on TRS leases.

Hotel Results by Location in Nominal US$ Reconciliation of Hotel Net Income (Loss) to Hotel EBITDA (unaudited, in millions, except hotel statistics) Year-to-date ended September 30, 2020 Location No. of Properties No. of Rooms Hotel Net Income (Loss) Plus: Depreciation Plus: Interest Expense Plus: Income Tax Plus: Severance at hotel properties(1) Equals: Hotel EBITDA Jacksonville 1 446 $6.2 $6.8 $— $— $0.2 $13.2 Florida Gulf Coast 5 1,842 15.3 28.1 — — 1.3 44.7 Miami 3 1,276 (5.3) 18.0 — — 0.4 13.1 Maui/Oahu 4 1,987 (31.9) 37.2 — — — 5.3 Phoenix 3 1,654 (14.1) 38.1 — — 1.7 25.7 Los Angeles 4 1,726 (25.6) 14.3 — — 0.9 (10.4) San Francisco/San Jose 7 4,528 (74.5) 55.7 — — 2.6 (16.2) San Diego 3 3,288 (53.1) 51.4 — — 3.3 1.6 New York 3 4,261 (130.9) 38.7 — — 15.5 (76.7) Atlanta 4 1,682 (8.8) 15.6 — — 0.3 7.1 Orange County 2 925 (5.7) 6.6 — — 1.0 1.9 Philadelphia 2 810 (10.9) 9.2 — — 0.3 (1.4) New Orleans 1 1,333 (5.0) 7.9 — — 0.6 3.5 Houston 4 1,716 (16.8) 14.5 — — 1.2 (1.1) Northern Virginia 3 1,252 (13.8) 9.5 — — 0.5 (3.8) Washington, D.C. (CBD) 5 3,238 (53.8) 28.7 — — 2.9 (22.2) Orlando 1 2,004 (14.5) 21.3 — — 2.2 9.0 Seattle 2 1,315 (23.8) 12.0 — — 0.4 (11.4) Denver 3 1,340 (14.8) 12.0 — — 0.4 (2.4) San Antonio 2 1,512 (17.5) 12.4 — — 2.1 (3.0) Boston 3 2,715 (47.8) 19.0 — — 2.9 (25.9) Chicago 4 1,816 (37.1) 16.6 — — 0.6 (19.9) Other 6 2,509 (21.0) 14.1 — — 2.1 (4.8) Other property level 3.4 — — — — 3.4 Domestic 75 45,175 (601.8) 487.7 — — 43.4 (70.7) International 5 1,499 (8.5) 6.7 — — 0.2 (1.6) All Locations - Nominal US$ 80 46,674 $(610.3) $494.4 $— $— $43.6 $(72.3) Severance at hotel properties — — — — (43.6) (43.6) Gain on sale of property and corporate level income/expense (64.7) 3.2 143.0 (155.5) — (74.0) Total 80 46,674 $(675.0) $497.6 $143.0 $(155.5) $— $(189.9) Effective for the third quarter of 2020 we remove severance from hotel property level operating results. See Notes to Supplemental Financial Information for more detail.

Hotel Results by Location in Nominal US$ (unaudited, in millions, except hotel statistics and per room basis) Year-to-date ended September 30, 2019 Location No. of Properties No. of Rooms Average Room Rate Average Occupancy Percentage RevPAR Total Revenues Total Revenues per Available Room Hotel Net Income Hotel EBITDA (1) Jacksonville 1 446 $383.37 77.2% $296.02 $79.5 $652.91 $21.4 $28.3 Florida Gulf Coast 5 1,842 340.73 72.8 247.94 245.1 486.76 52.9 78.9 Miami 3 1,276 318.31 80.1 254.98 144.8 401.39 24.4 47.9 Maui/Oahu 4 1,987 401.92 90.9 365.45 305.1 563.64 70.2 103.8 Phoenix 3 1,654 292.22 71.7 209.42 213.2 472.19 39.4 68.2 Los Angeles 4 1,726 230.36 87.6 201.87 140.3 297.83 16.8 31.9 San Francisco/San Jose 7 4,528 279.15 81.5 227.38 389.5 315.49 84.1 131.0 San Diego 3 3,288 255.81 81.2 207.62 334.4 372.41 70.8 117.6 New York 3 4,261 268.50 83.0 222.99 383.3 329.67 8.2 48.1 Atlanta 4 1,682 193.72 79.7 154.41 110.9 241.44 26.7 37.7 Orange County 2 925 199.26 80.4 160.27 66.8 264.63 17.9 20.0 Philadelphia 2 810 216.10 85.4 184.46 66.7 301.70 10.5 20.1 New Orleans 1 1,333 188.24 79.9 150.35 79.8 219.33 20.5 28.5 Houston 4 1,716 178.46 72.4 129.22 86.5 184.58 8.9 23.4 Northern Virginia 3 1,252 208.03 72.1 150.02 84.0 245.90 16.0 22.3 Washington, D.C. (CBD) 5 3,238 246.65 83.1 204.99 259.1 293.15 48.9 78.4 Orlando 1 2,004 182.58 69.5 126.97 166.0 303.48 35.7 52.7 Seattle 2 1,315 231.59 84.3 195.17 91.9 256.01 13.3 25.4 Denver 3 1,340 175.15 76.3 133.61 71.7 195.92 11.9 24.0 San Antonio 2 1,512 183.18 73.0 133.69 80.6 195.06 13.5 21.6 Boston 3 2,715 238.71 82.8 197.72 201.0 271.22 45.0 56.5 Chicago 4 1,816 207.76 76.2 158.28 110.2 224.27 14.6 30.1 Other 6 2,509 172.53 79.1 136.41 132.7 193.77 34.1 39.5 Other property level (2) — — — — — 15.7 — 1.6 1.6 Domestic 75 45,175 246.75 79.8 196.78 3,858.8 311.48 707.3 1,137.5 International 5 1,499 154.30 71.1 109.74 65.1 159.00 11.0 18.6 All Locations - Nominal US$ 80 46,674 $244.09 79.5% $193.99 $3,923.9 $306.58 $718.3 $1,156.1 Pro forma adjustments (3) 211.0 — 53.9 Gain on sale of property and corporate level income/expense (1) — 132.7 290.0 Total 80 46,674 — — — $4,134.9 — $851.0 $1,500.0 Certain items from our statement of operations are not allocated to individual properties, including interest on our senior notes, corporate and other expenses, and the provision for income taxes. These items are reflected below in “gain on sale of property and corporate level income/expense”. Refer to the table below for reconciliation of net income to EBITDA by location. Other property level includes certain ancillary revenues and related expenses, as well as non-income taxes on TRS leases. Pro forma adjustments represent the following items: (i) the results of operations of our sold hotels, which operations are included in our condensed consolidated statements of operations as continuing operations and (ii) the results for periods prior to our ownership for hotels acquired during the presented periods.

Hotel Results by Location in Nominal US$ Reconciliation of Hotel Net Income to Hotel EBITDA (unaudited, in millions, except hotel statistics) Year-to-date ended September 30, 2019 Location No. of Properties No. of Rooms Hotel Net Income Plus: Depreciation Plus: Interest Expense Plus: Income Tax Pro forma adjustments (1) Equals: Hotel EBITDA Jacksonville 1 446 $21.4 $6.9 $ — $ — $ — $28.3 Florida Gulf Coast 5 1,842 52.9 26.0 — — — 78.9 Miami 3 1,276 24.4 15.0 — — 8.5 47.9 Maui/Oahu 4 1,987 70.2 33.6 — — — 103.8 Phoenix 3 1,654 39.4 38.3 — — (9.5) 68.2 Los Angeles 4 1,726 16.8 15.1 — — — 31.9 San Francisco/San Jose 7 4,528 84.1 46.9 — — — 131.0 San Diego 3 3,288 70.8 59.8 — — (13.0) 117.6 New York 3 4,261 8.2 37.0 — — 2.9 48.1 Atlanta 4 1,682 26.7 14.8 — — (3.8) 37.7 Orange County 2 925 17.9 8.2 — — (6.1) 20.0 Philadelphia 2 810 10.5 9.6 — — — 20.1 New Orleans 1 1,333 20.5 8.0 — — — 28.5 Houston 4 1,716 8.9 14.5 — — — 23.4 Northern Virginia 3 1,252 16.0 11.6 — — (5.3) 22.3 Washington, D.C. (CBD) 5 3,238 48.9 29.5 — — — 78.4 Orlando 1 2,004 35.7 17.0 — — — 52.7 Seattle 2 1,315 13.3 12.1 — — — 25.4 Denver 3 1,340 11.9 12.1 — — — 24.0 San Antonio 2 1,512 13.5 8.1 — — — 21.6 Boston 3 2,715 45.0 25.1 — — (13.6) 56.5 Chicago 4 1,816 14.6 19.5 — — (4.0) 30.1 Other 6 2,509 34.1 15.4 — — (10.0) 39.5 Other property level — — 1.6 — — — — 1.6 Domestic 75 45,175 707.3 484.1 — — (53.9) 1,137.5 International 5 1,499 11.0 7.6 — — — 18.6 All Locations - Nominal US$ 80 46,674 $718.3 $491.7 $ — $ — $(53.9) $1,156.1 Pro forma adjustments — — — — 53.9 53.9 Gain on sale of property and corporate level income/expense 132.7 3.3 132.4 21.6 — 290.0 Total 80 46,674 $851.0 $495.0 $132.4 $21.6 $ — $1,500.0 Pro forma adjustments represent the following items: (i) the results of operations of our sold hotels, which operations are included in our condensed consolidated statements of operations as continuing operations and (ii) the results for periods prior to our ownership for hotels acquired during the presented periods.

Top 40 Domestic Hotels by Total RevPAR For the Year ended December 31, 2019 (unaudited, in millions, except hotel statistics and per room basis) Year ended December 31, 2019 Hotel Location No. of Rooms Average Room Rate Average Occupancy Percentage RevPAR Total Revenues Total Revenues per Available Room Hotel Net Income (Loss) Hotel EBITDA (1) 1 The Ritz-Carlton, Naples Florida Gulf Coast 450 $595.81 68.0% $405.06 $138.3 $841.74 $32.3 $46.5 2 Andaz Maui at Wailea Resort Maui/Oahu 301 600.56 87.5 525.47 91.2 829.82 16.7 25.9 3 1 Hotel South Beach(2) Miami 433 615.15 79.5 488.90 143.1 820.25 25.3 48.7 4 Fairmont Kea Lani, Maui Maui/Oahu 450 600.11 87.2 523.41 123.9 754.28 27.5 43.2 5 The Phoenician, A Luxury Collection Resort Phoenix 645 375.68 74.6 280.36 153.4 651.46 18.4 49.9 6 The Ritz-Carlton, Amelia Island Jacksonville 446 372.94 73.5 274.07 99.9 613.80 25.0 34.1 7 Hyatt Regency Maui Resort and Spa Maui/Oahu 806 355.40 86.5 307.40 154.3 524.41 40.2 54.7 8 The Ritz-Carlton, Marina del Rey Los Angeles 304 361.17 84.4 304.93 54.4 490.66 8.3 12.8 9 The Don CeSar Florida Gulf Coast 347 294.26 74.3 218.60 57.5 453.69 11.4 19.1 10 New York Marriott Marquis New York 1,966 320.22 87.1 278.88 318.4 443.69 37.6 63.2 11 The Westin Kierland Resort & Spa Phoenix 732 254.93 68.0 173.35 111.6 417.63 22.9 34.1 12 W Hollywood Los Angeles 305 291.84 83.3 243.05 45.1 404.94 1.6 9.4 13 The Ritz-Carlton Golf Resort, Naples Florida Gulf Coast 295 341.76 62.7 214.34 43.0 399.62 7.9 12.2 14 The Logan Philadelphia 391 253.44 80.4 203.74 54.7 383.34 8.6 18.3 15 Marriott Marquis San Diego Marina San Diego 1,360 256.88 81.1 208.36 189.9 382.50 33.1 65.9 16 San Francisco Marriott Marquis San Francisco/San Jose 1,500 305.19 83.3 254.25 204.8 374.01 37.8 63.6 17 Grand Hyatt San Francisco San Francisco/San Jose 668 323.37 87.5 283.01 88.4 362.64 10.0 22.3 18 Hyatt Regency Coconut Point Resort and Spa Florida Gulf Coast 454 235.61 71.8 169.16 59.9 361.77 9.7 16.8 19 The Ritz-Carlton, Tysons Corner Northern Virginia 398 264.32 75.7 199.98 51.6 354.98 4.4 11.3 20 Manchester Grand Hyatt San Diego San Diego 1,628 244.17 77.7 189.63 207.9 349.89 41.0 70.2 21 JW Marriott Washington, DC Washington, D.C. (CBD) 777 273.85 83.1 227.66 90.3 318.46 19.8 28.2 22 Coronado Island Marriott Resort & Spa San Diego 300 242.75 81.0 196.68 34.9 318.28 2.9 9.6 23 Grand Hyatt Washington Washington, D.C. (CBD) 897 241.75 83.8 202.53 103.8 317.13 16.7 32.4 24 Marina del Rey Marriott Los Angeles 370 249.52 88.5 220.92 41.9 310.52 9.9 12.6 25 San Francisco Marriott Fisherman's Wharf San Francisco/San Jose 285 285.26 93.1 265.51 32.2 309.45 5.4 8.8 26 Boston Marriott Copley Place Boston 1,144 245.67 87.4 214.79 128.2 307.13 25.9 36.8 27 Orlando World Center Marriott Orlando 2,004 184.12 67.9 125.02 221.4 302.71 48.1 71.2 28 Axiom Hotel San Francisco/San Jose 152 263.01 86.8 228.31 16.6 299.53 4.2 8.5 29 Sheraton New York Times Square Hotel New York 1,780 252.54 85.2 215.19 193.2 297.32 (0.1) 18.9 30 Newport Beach Marriott Hotel & Spa(3) Orange County 532 203.11 78.9 160.30 54.6 281.10 15.7 19.7 31 The Westin Chicago River North Chicago 445 252.40 77.2 194.98 43.2 274.75 3.8 9.8 32 Hyatt Regency San Francisco Airport San Francisco/San Jose 789 206.79 89.9 185.94 77.7 269.66 10.4 24.0 33 Washington Marriott at Metro Center Washington, D.C. (CBD) 459 232.44 84.3 196.00 44.2 263.91 10.1 12.6 34 The St. Regis Houston Houston 232 282.43 60.1 169.83 22.2 262.70 1.0 3.1 35 Hyatt Regency Washington on Capitol Hill Washington, D.C. (CBD) 838 231.27 76.9 177.82 79.7 260.49 10.8 20.6 36 New York Marriott Downtown New York 513 268.99 75.0 201.65 47.9 256.03 4.6 10.4 37 Grand Hyatt Atlanta in Buckhead Atlanta 439 178.60 85.8 153.24 40.7 254.13 8.7 13.5 38 The Westin Seattle Seattle 891 217.11 82.1 178.31 81.9 251.90 9.6 19.9 39 JW Marriott Atlanta Buckhead Atlanta 371 192.56 79.0 152.18 33.6 248.19 8.2 11.5 40 Swissôtel Chicago Chicago 662 195.30 74.3 145.10 59.8 247.46 9.7 19.2 Total Top 40 27,759 $282.65 80.3% $226.90 $3,839.3 378.51 $645.1 $1,113.5* Remaining 40 hotels 18,911 185.75 76.2% 141.55 1,388.6 201.23 236.1 408.4 Pro forma adjustment for 1 Hotel South Beach (2) (20.1) - (8.3) Gain on sale of property, sold property operations and corporate level income/ expense(1) 260.9 50.8 24.6 Total 46,670 — — — $5,468.7 — $932.0 $1,538.2 *Represents 72% of our EBITDAre. Certain items from our statement of operations are not allocated to individual properties, including interest on our senior notes, corporate and other expenses, and the provision for income taxes. These items are reflected below in “gain on sale of property, sold property operations and corporate level income/expense”. Refer to the table below for a reconciliation of net income (loss) to Hotel EBITDA. The total represents Host Hotel’s EBITDAre, as defined in the Notes to Supplemental Financial Information. The Hotel EBITDA results for the 1 Hotel South Beach acquired in February 2019 are included on a pro forma basis, which includes operating results assuming the hotel was owned as of January 1, 2019 and based on actual results obtained from the manager for periods prior to our ownership. For this hotel, since the operations include periods prior to our ownership, the results may not necessarily correspond to our actual results. This hotel was sold subsequent to December 31, 2019.

Top 40 Domestic Hotels by Total RevPAR Reconciliation of Hotel Net Income (Loss) to Hotel EBITDA and EBITDAre (unaudited, in millions, except hotel statistics) Year ended December 31, 2019 Hotel Location No. of Rooms Hotel Net Income (Loss) Plus: Depreciation Plus: Interest Expense Plus: Income Tax Less: Gain on dispositions Plus: Equity Investment Adjustments Plus: Pro Forma Adjustments (1) Equals: Hotel EBITDA 1 The Ritz-Carlton, Naples Florida Gulf Coast 450 $32.3 $14.2 $- $- $- $- $- $46.5 2 Andaz Maui at Wailea Resort Maui/Oahu 301 16.7 9.2 - - - - - 25.9 3 1 Hotel South Beach(1) Miami 433 25.3 15.1 - - - - 8.3 48.7 4 Fairmont Kea Lani, Maui Maui/Oahu 450 27.5 15.7 - - - - - 43.2 5 The Phoenician, A Luxury Collection Resort Phoenix 645 18.4 31.5 - - - - - 49.9 6 The Ritz-Carlton, Amelia Island Jacksonville 446 25.0 9.1 - - - - - 34.1 7 Hyatt Regency Maui Resort and Spa Maui/Oahu 806 40.2 14.5 - - - - - 54.7 8 The Ritz-Carlton, Marina del Rey Los Angeles 304 8.3 4.5 - - - - - 12.8 9 The Don CeSar Florida Gulf Coast 347 11.4 7.7 - - - - - 19.1 10 New York Marriott Marquis New York 1,966 37.6 25.6 - - - - - 63.2 11 The Westin Kierland Resort & Spa Phoenix 732 22.9 11.2 - - - - - 34.1 12 W Hollywood Los Angeles 305 1.6 7.8 - - - - - 9.4 13 The Ritz-Carlton Golf Resort, Naples Florida Gulf Coast 295 7.9 4.3 - - - - - 12.2 14 The Logan Philadelphia 391 8.6 9.7 - - - - - 18.3 15 Marriott Marquis San Diego Marina San Diego 1,360 33.1 32.8 - - - - - 65.9 16 San Francisco Marriott Marquis San Francisco/San Jose 1,500 37.8 25.8 - - - - - 63.6 17 Grand Hyatt San Francisco San Francisco/San Jose 668 10.0 12.3 - - - - - 22.3 18 Hyatt Regency Coconut Point Resort and Spa Florida Gulf Coast 454 9.7 7.1 - - - - - 16.8 19 The Ritz-Carlton, Tysons Corner Northern Virginia 398 4.4 6.9 - - - - - 11.3 20 Manchester Grand Hyatt San Diego San Diego 1,628 41.0 29.2 - - - - - 70.2 21 JW Marriott Washington, DC Washington, D.C. (CBD) 777 19.8 8.4 - - - - - 28.2 22 Coronado Island Marriott Resort & Spa San Diego 300 2.9 6.7 - - - - - 9.6 23 Grand Hyatt Washington Washington, D.C. (CBD) 897 16.7 15.7 - - - - - 32.4 24 Marina del Rey Marriott Los Angeles 370 9.9 2.7 - - - - - 12.6 25 San Francisco Marriott Fisherman's Wharf San Francisco/San Jose 285 5.4 3.4 - - - - - 8.8 26 Boston Marriott Copley Place Boston 1,144 25.9 10.9 - - - - - 36.8 27 Orlando World Center Marriott Orlando 2,004 48.1 23.1 - - - - - 71.2 28 Axiom Hotel San Francisco/San Jose 152 4.2 4.3 - - - - - 8.5 29 Sheraton New York Times Square Hotel New York 1,780 (0.1) 19.0 - - - - - 18.9 30 Newport Beach Marriott Hotel & Spa(2) Orange County 532 15.7 4.0 - - - - - 19.7 31 The Westin Chicago River North Chicago 445 3.8 6.0 - - - - - 9.8 32 Hyatt Regency San Francisco Airport San Francisco/San Jose 789 10.4 13.6 - - - - - 24.0 33 Washington Marriott at Metro Center Washington, D.C. (CBD) 459 10.1 2.5 - - - - - 12.6 34 The St. Regis Houston Houston 232 1.0 2.1 - - - - - 3.1 35 Hyatt Regency Washington on Capitol Hill Washington, D.C. (CBD) 838 10.8 9.8 - - - - - 20.6 36 New York Marriott Downtown New York 513 4.6 5.8 - - - - - 10.4 37 Grand Hyatt Atlanta in Buckhead Atlanta 439 8.7 4.8 - - - - - 13.5 38 The Westin Seattle Seattle 891 9.6 10.3 - - - - - 19.9 39 JW Marriott Atlanta Buckhead Atlanta 371 8.2 3.3 - - - - - 11.5 40 Swissôtel Chicago Chicago 662 9.7 9.5 - - - - - 19.2 Total Top 40 27,759 $645.1 $460.1 $- $- $- $- $8.3 $1,113.5 Remaining 40 hotels 18,911 236.1 172.3 - - - - - 408.4 Pro forma adjustment for 1 Hotel South Beach acquisition (1) - - - - - - (8.3) (8.3) Gain on sale of property, sold property operations and corporate level income/ expense 50.8 43.7 222.4 29.5 (334.1) 12.3 - 24.6 Total 46,670 $932.0 $676.1 $222.4 $29.5 $(334.1) $12.3 $- $1,538.2 The Hotel EBITDA results for the 1 Hotel South Beach acquired in February 2019 are included on a pro forma basis, which includes operating results assuming the hotel was owned as of January 1, 2019 and based on actual results obtained from the manager for periods prior to our ownership. For this hotel, since the operations include periods prior to our ownership, the results may not necessarily correspond to our actual results. This hotel was sold subsequent to December 31, 2019.

Overview Property level data Capitalization COVID-19 Data NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION

Comparative Capitalization (in millions, except security pricing and per share amounts) As of As of As of As of As of September 30, June 30, March 31, December 31, September 30, Shares/Units 2020 2020 2020 2019 2019 Common shares outstanding 705.3 705.2 704.9 713.4 718.5 Common shares outstanding assuming conversion of OP Units (1) 712.7 712.7 712.5 721.0 726.2 Preferred OP Units outstanding .01 .01 .01 .01 .01 Security pricing Common stock at end of quarter (2) $10.79 $10.79 $11.04 $18.55 $17.29 High during quarter 12.06 14.82 18.23 18.86 18.46 Low during quarter 10.19 9.06 9.31 16.31 15.60 Capitalization Market value of common equity (3) $7,690 $7,690 $7,866 $13,375 $12,556 Consolidated debt 5,638 4,543 5,295 3,794 4,442 Less: Cash (2,430) (1,578) (2,796) (1,573) (2,030) Consolidated total capitalization 10,898 10,655 10,365 15,596 14,968 Plus: Share of debt in unconsolidated investments 142 144 146 145 146 Pro rata total capitalization $11,040 $10,799 $10,511 $15,741 $15,114 Quarter ended Quarter ended Quarter ended Quarter ended Quarter ended September 30, June 30, March 31, December 31, September 30, 2020 2020 2020 2019 2019 Dividends declared per common share $0.00 $0.00 $0.20 $0.25 $0.20 Each OP Unit is redeemable for cash or, at our option, for 1.021494 common shares of Host Inc. At September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019 and September 30, 2019, there were 7.3 million, 7.3 million, 7.5 million, 7.5 million and 7.6 million in common OP Units, respectively, held by non-controlling interests. Share prices are the closing price as reported by the New York Stock Exchange. Market value of common equity is calculated as the number of common shares outstanding including assumption of conversion of OP units multiplied the closing share price on that day.

Consolidated Debt Summary (in millions) Debt Senior debt Rate Maturity date September 30, 2020 December 31, 2019 Series C 4 3⁄4% 3/2023 86 447 Series D 3 3⁄4% 10/2023 399 398 Series E 4% 6/2025 497 497 Series F 4 1⁄2% 2/2026 397 397 Series G 3 7⁄8% 4/2024 397 397 Series H 3 ⅜% 12/2029 640 640 Series I 3 1⁄2% 9/2030 734 — 2024 Credit facility term loan 1.8% 1/2024 498 498 2025 Credit facility term loan 1.8% 1/2025 499 499 Credit facility revolver (1) 1.7% 1/2024 1,485 (8) 5,632 3,765 Other debt Other debt 8.8% 02/2024 6 29 Total debt(2)(3) $5,638 $3,794 Percentage of fixed rate debt 56% 74% Weighted average interest rate 3.0% 3.8% Weighted average debt maturity 5.2 years 5.4 years Credit Facility Total capacity $1,500 Available capacity — Assets encumbered by mortgage debt — The interest rate shown is the rate of the outstanding credit facility revolver borrowings at September 30, 2020, based on LIBOR plus 150 basis points. Depending on Host L.P.’s unsecured long-term debt rating, interest on revolver borrowings is equal to LIBOR plus a margin ranging from 117.5 to 185 basis points. There were no outstanding credit facility borrowings at December 31, 2019; the amount shown represents deferred financing costs related to the credit facility revolver. In accordance with GAAP, total debt includes the debt of entities that we consolidate, but of which we do not own 100%, and excludes the debt of entities that we do not consolidate, but of which we have a non-controlling ownership interest and record our investment therein under the equity method of accounting. As of September 30, 2020, our share of debt in unconsolidated investments is $142 million and none of our debt is attributable to non-controlling interests. Total debt as of September 30, 2020 and December 31, 2019 includes net discounts and deferred financing costs of $49 million and $35 million, respectively.

Consolidated Debt Maturity as of September 30, 2020 The term loan and revolver under our credit facility that are due in 2024 have extension options that would extend maturity of both instruments to 2025, subject to meeting certain conditions, including payment of a fee.

Ground Lease Summary as of December 31, 2019 As of December 31, 2019 Hotel No. of rooms Lessor Institution Type Minimum rent Current expiration Expiration after all potential options (1) 1 Boston Marriott Copley Place 1,144 Public N/A (2) 12/13/2077 12/13/2077 2 Coronado Island Marriott Resort & Spa 300 Public 1,378,850 10/31/2062 10/31/2078 3 Denver Marriott West 305 Private 160,000 12/28/2028 12/28/2058 4 Houston Airport Marriott at George Bush Intercontinental 573 Public 1,560,000 10/31/2053 10/31/2053 5 Houston Marriott Medical Center/Museum District 395 Non-Profit 160,000 12/28/2029 12/28/2059 6 Manchester Grand Hyatt San Diego 1,628 Public 6,600,000 5/31/2067 5/31/2083 7 Marina del Rey Marriott 370 Public 1,991,076 3/31/2043 3/31/2043 8 Marriott Downtown at CF Toronto Eaton Centre 461 Non-Profit 384,900 9/20/2082 9/20/2082 9 Marriott Marquis San Diego Marina 1,360 Public 7,650,541 11/30/2061 11/30/2083 10 Newark Liberty International Airport Marriott 591 Public 2,476,119 12/31/2055 12/31/2055 11 Philadelphia Airport Marriott 419 Public 1,230,278 6/29/2045 6/29/2045 12 San Antonio Marriott Rivercenter 1,000 Private 700,000 12/31/2033 12/31/2063 13 San Francisco Marriott Marquis 1,500 Public 1,500,000 8/25/2046 8/25/2076 14 San Ramon Marriott 368 Private 482,144 5/29/2034 5/29/2064 15 Santa Clara Marriott 766 Private 90,932 11/30/2028 11/30/2058 16 Tampa Airport Marriott 298 Public 1,463,770 12/31/2033 12/31/2033 17 The Ritz-Carlton, Marina del Rey 304 Public 1,453,104 7/29/2067 7/29/2067 18 The Ritz-Carlton, Tysons Corner 398 Private 993,900 6/30/2112 6/30/2112 19 The Westin Cincinnati 456 Public 100,000 6/30/2045 6/30/2075 (3) 20 The Westin Los Angeles Airport 747 Private 1,225,050 1/31/2054 1/31/2074 (4) 21 The Westin South Coast Plaza, Costa Mesa 393 Private 178,160 9/30/2025 9/30/2025 22 W Hollywood 305 Public 366,579 3/28/2106 3/28/2106 Weighted average remaining lease term (assuming all extension options) 54 years Percentage of leases (based on room count) with Public/Private/Non-Profit lessors 66%/28%/6% Exercise of Host’s option to extend is subject to certain conditions, including the existence of no defaults and subject to any applicable rent escalation or rent re-negotiation provisions. All rental payments have been previously paid and no further rental payments are required for the remainder of the lease term. No renewal term in the event the Lessor determines to discontinue use of building as a hotel. A condition of renewal is that the hotel’s occupancy compares favorably to similar hotels for the preceding three years.

Property Dispositions The table includes 14 properties sold in 2019 and one property sold in 2020. The cap rate is calculated as the ratio between the trailing twelve month net operating income (NOI) and the sales price plus avoided capital expenditures. However, due to the impact of the COVID-19 pandemic, 2019 full-year results have been used for the 2020 disposition, as 2020 results are not reflective of normal operations of the hotel. Avoided capital expenditures for 2019 sales and 2020 sales represents $202 million and $27 million, respectively, of estimated capital expenditure spend requirements for the properties in excess of escrow funding over the next 10 years, discounted at 8%. The EBITDA multiple is calculated as the ratio between the sales price plus avoided capital expenditures over the trailing twelve-month Hotel EBITDA, or 2019 results in the case of the 2020 disposition. Avoided capital expenditures for 2019 sales and 2020 sales represents $439 million and $60 million, respectively, of estimated capital expenditure spend requirements for the properties including escrow funding over the next 10 years, discounted at 8%. Cap rates and multiples are based on the trailing twelve months from the disposition date of the hotel for 2019 sales Net income cap rate is calculated as the ratio between the trailing twelve month net income and the sales price. Net income multiple is calculated as the ratio between the sales price over the trailing twelve month Hotel net income. Cap rates and multiples are based on 2019 results for 2020 sales. Net income cap rate is calculated as the ratio between the net income and the sales price. Net income multiple is calculated as the ratio between the sales price over Hotel net income. The following presents a reconciliation between the GAAP and non-GAAP measures. There was no interest expense or income tax related to these hotels for the periods presented. 2020 sales use full year 2019 results. Due to the impact of COVID-19, trailing twelve-month results are not reflective of normal operations of the hotel. Net income and Hotel EBITDA recorded in 2019 for 2019 sales totaled approximately $44 million and $64 million, respectively. Net income and Hotel EBITDA recorded in 2020 for 2020 sales totaled approximately $(1) million and $2 million respectively. Sales Price (in millions) (1) Net income Cap Rate (4)(5) Cap Rate (2)(4)(5) Net income multiple (4)(5) EBITDA multiple (3)(4)(5) 2019 completed sales $1,281 4.6% 6.3% 21.6x 14.1x 2020 completed sales $216 7.0% 6.8% 14.2x 13.8x Trailing Twelve Months from Disposition Date (in millions) (6) Total Revenues RevPar Total RevPar Hotel Net Income (Loss) (7) Plus: Depreciation Equals: Hotel EBITDA (7) Renewal & Replacement funding Hotel Net Operating Income 2019 completed sales $465.6 $152.91 $215.69 $59.4 $53.9 $113.3 $(22.9) $90.4 2020 completed sales $54.6 $160.30 $281.10 $15.2 $4.0 $19.2 $(2.9) $16.3

Overview Property Level Data Capitalization COVID-19 Data NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION

Credit Facility Amendment(1) FINANCIAL COVENANTS Obtained waiver of existing quarterly-tested financial covenants beginning July 1, 2020 through July 1, 2021. Option to terminate the Covenant Relief Period early. Obtained a modification of the quarterly-tested leverage covenant and EBITDA calculation to ease compliance: ACQUISITIONS Preserved flexibility to make acquisitions using our existing liquidity as well as potentially tapping equity capacity with no requirement to first repay debt: DISPOSITIONS $750 million available for reinvestment in new unencumbered properties through the 1031 exchange process MANDATORY PAYMENTS During the Covenant Waiver Period, net cash proceeds from debt issuances and dispositions, subject to certain exceptions, are to be applied based on the following schedule: i. The first $350 million to the Borrower (following debt issuance of Series I senior notes and sale of Newport Beach Marriott, have maximized capacity available to Host) ii. The second $350 million to repay revolver iii. Amounts in excess of $700 million applied to repay the revolver and the two term loans on a pro rata basis CAPITAL EXPENDITURES Ability to fund all emergency, life safety and ordinary course maintenance capital expenditures plus $500 million in other capital expenditures such as return on investment capital expenditures. RESTRICTED PAYMENTS Allow $0.01 dividend per share quarterly distribution or higher to the extent necessary to maintain REIT status or to avoid payment of income taxes No share buybacks during Covenant Waiver Period and after existing Covenant Waiver Period, unless Leverage Ratio is <= 7.25x INTEREST RATE 40-basis point increase in the credit ratings-based interest rate grid during Covenant Relief Period LIBOR Floor of 15-basis points for the life of the credit facility Maximum 8.25x 8.00x 7.75x 7.25x 3Q '21 4Q '21 1Q '22 Beyond Acquisition Capacity With Existing Liquidity Minimum Liquidity Requirement $1.5 billion $500 million $1.0 billion $400 million $750 million $300 million Acquisition Capacity Using Equity Minimum Liquidity Requirement $7.5 billion $300 million Rating Revolver Term Loans Facility Fee BBB (Baa2) 130 140 20 BBB-/Baa3 150 165 25 <BBB-/Baa3 185 205 30 The foregoing does not purport to be a complete description of the terms of the Amendment and such description is qualified in its entirety by reference to the Amendment, a copy of which is filed with the SEC.

financial Covenants: Credit Facility and Senior Notes Financial Performance Tests (unaudited, in millions, except ratios) At September 30, 2020(1) Credit Facility Financial Performance Tests Permitted GAAP Ratio Covenant Ratio Leverage Ratio Maximum 7.25x (9.5x) 16.4x Unsecured Interest Coverage Ratio Minimum 1.75x(2) (2.5x) 1.5x Consolidated Fixed Charge Coverage Ratio Minimum 1.25x (2.5x) 0.4x At September 30, 2020(3) Bond Compliance Financial Performance Tests Permitted GAAP Ratio Covenant Ratio Indebtedness Test Maximum 65% 43% 26% Secured Indebtedness Test Maximum 40% 0% 0% EBITDA-to-interest Coverage ratio Minimum 1.5x (2.5x) 1.1x Ratio of Unencumbered Assets to Unsecured Indebtedness Minimum 150% 232% 379% The following tables present the financial performance tests for our credit facility and senior notes (Series D, E, F, G, H and I) issued after attaining investment grade status: Covenant ratios are calculated using Host’s credit facility definitions and are for informational purposes only, as the covenants are not currently in effect under the Amendment. The GAAP ratio is not relevant for the purpose of the financial covenants. See the following pages for a reconciliation of the equivalent GAAP measure. If the leverage ratio is greater than 7.0x then the unsecured interest coverage ratio minimum becomes 1.50x. Covenant ratios are calculated using Host’s senior notes indenture definitions. The GAAP ratio is not relevant for the purpose of the financial covenants. See the following pages for a reconciliation of the equivalent GAAP measure. As of September 30, 2020, the Company was below the financial covenant levels under its senior notes indentures necessary to incur debt, and, as a result, it will not be able to incur additional debt while below these levels.

Financial covenants: Reconciliation of GAAP Leverage Ratio to Credit Facility Leverage Ratio (unaudited, in millions, except ratios) The following table presents the calculation of our leverage ratio as used in the financial covenants of the credit facility: The following presents the reconciliation of debt to net debt per our credit facility definition: (2) The following presents the reconciliation of net income to EBITDA, EBITDAre, Adjusted EBITDAre and Adjusted EBITDA per our credit facility definition in determining leverage ratio: The following tables present the calculation of our leverage ratio using GAAP measures and used in the financial covenants of the credit facility: GAAP Leverage Ratio Trailing twelve months September 30, 2020 Debt $5,638 Net income (loss) (594) GAAP Leverage Ratio (9.5x) Leverage Ratio per Credit Facility Trailing twelve months September 30, 2020 Net debt (1) $3,309 Adjusted Credit Facility EBITDA (2) 202 Leverage Ratio 16.4x September 30, 2020 Debt $5,638 Less: Unrestricted cash over $100 million (2,329) Net debt per credit facility definition $3,309 Trailing twelve months September 30, 2020 Net income (loss) $(594) Interest expense 233 Depreciation and amortization 665 Income taxes (148) EBITDA 156 Gain on dispositions (3) Non-cash impairment expense 8 Equity in earnings of affiliates 25 Pro rata EBITDAre of equity investments (11) EBITDAre 175 Severance at hotel properties 44 Adjusted EBITDAre 219 Less: Severance (44) Pro forma EBITDA - Dispositions (2) Restricted stock expense and other non-cash items 16 Non-cash partnership adjustments 13 Adjusted Credit Facility EBITDA $202

Financial Covenants: Reconciliation of GAAP Interest Coverage Ratio to Credit Facility Unsecured Interest Coverage Ratio (unaudited, in millions, except ratios) The following tables present the calculation of our unsecured interest coverage ratio using GAAP measures and as used in the financial covenants of the credit facility: GAAP Interest Coverage Ratio Trailing twelve months September 30, 2020 Net income (loss) $(594) Interest Expense 233 GAAP Interest Coverage Ratio (2.5x) Unsecured Interest Coverage per Credit Facility Ratio Trailing twelve months September 30, 2020 Unencumbered consolidated EBITDA per credit facility definition (1) $264 Adjusted Credit Facility interest expense (2) 179 Unsecured Interest Coverage Ratio 1.5x Trailing twelve months September 30, 2020 Adjusted Credit Facility EBITDA $202 Corporate overhead 78 Interest income (16) Unencumbered Consolidated EBITDA per credit facility definition $264 Trailing twelve months September 30, 2020 GAAP Interest expense $233 Debt extinguishment costs (81) Deferred financing cost amortization (5) Capitalized interest 5 Pro forma interest adjustments 27 Adjusted Credit Facility Interest Expense $179 (1) The following reconciles Adjusted Credit Facility EBITDA to Unencumbered Consolidated EBITDA per our credit facility definition. See Reconciliation of GAAP Leverage Ratio to Credit Facility Leverage Ratio for calculation and reconciliation of net income to Adjusted Credit Facility EBITDA: (2) The following reconciles GAAP interest expense to interest expense per our credit facility definition:

Financial Covenants: Reconciliation of GAAP Interest Coverage Ratio to Credit Facility Fixed Charge Coverage Ratio (unaudited, in millions, except ratios) The following tables present the calculation of our GAAP Interest coverage ratio and our fixed charge coverage ratio as used in the financial covenants of the credit facility: GAAP Interest Coverage Ratio Trailing twelve months September 30, 2020 Net income (loss) $(594) Interest expense 233 GAAP Fixed Charge Coverage Ratio (2.5x) Credit Facility Fixed Charge Coverage Ratio Trailing twelve months September 30, 2020 Credit Facility Fixed Charge Coverage Ratio EBITDA (1) $69 Fixed charges (2) 189 Credit Facility Fixed Charge Coverage Ratio 0.4x Trailing twelve months September 30, 2020 Adjusted Credit Facility EBITDA $202 Less: 5% of hotel property gross revenue (133) Credit Facility Fixed Charge Coverage Ratio EBITDA $69 Trailing twelve months September 30, 2020 Adjusted Credit Facility interest expense 179 Cash taxes on ordinary income 10 Fixed Charges $189 (2) The following table calculates the fixed charges per our credit facility definition. See Reconciliation of GAAP Interest Coverage Ratio to Credit Facility Unsecured Interest Coverage Ratio for reconciliation of GAAP interest expense to adjusted interest expense per our credit facility definition. (1) The following reconciles Adjusted Credit Facility EBITDA to Credit Facility Fixed Charge Coverage Ratio EBITDA. See Reconciliation of GAAP Leverage Ratio to Credit Facility Leverage Ratio for calculation and reconciliation of Adjusted Credit Facility EBITDA.

September 30, 2020 Total assets $13,071 Add: Asset held-for-sale accumulated depreciation 122 Add: Accumulated depreciation 8,689 Add: Prior impairment of assets held 217 Add: Current year impairment of assets held 14 Less: Intangibles (22) Less: Right-of-use assets (600) Adjusted Total Assets per Senior Notes Indenture $21,491 Financial Covenants: Reconciliation of GAAP Indebtedness Test to Senior Notes Indenture Indebtedness Test (unaudited, in millions, except ratios) The following tables present the calculation of our total indebtedness to total assets using GAAP measures and as used in the financial covenants of our senior notes indenture: (2) The following presents the reconciliation of total assets to adjusted total assets per the financial covenants of our senior notes indenture definition: (1) The following reconciles our GAAP total indebtedness to our total indebtedness per our senior notes indenture: GAAP Total Indebtedness to Total Assets September 30, 2020 Debt $5,638 Total assets 13,071 GAAP Total Indebtedness to Total Assets 43% Total Indebtedness to Total Assets per Senior Notes Indenture September 30, 2020 Adjusted indebtedness (1) $5,670 Adjusted total assets (2) 21,491 Total Indebtedness to Total Assets 26% September 30, 2020 Debt $5,638 Add: Deferred financing costs 32 Adjusted Indebtedness per Senior Notes Indenture $5,670

Financial Covenants: Reconciliation of GAAP Secured Indebtedness Test to Senior Notes Indenture Secured Indebtedness Test (unaudited, in millions, except ratios) The following table presents the calculation of our secured indebtedness using GAAP measures and as used in the financial covenants of our senior notes indenture: (2) See Reconciliation of GAAP Indebtedness Test to Senior Notes Indenture Indebtedness Test for reconciliation of GAAP Total Assets to Adjusted Total Assets per our senior notes indenture. (1) The following presents the reconciliation of mortgage debt to secured indebtedness per the financial covenants of our senior notes indenture definition: GAAP Secured Indebtedness September 30, 2020 Mortgage and other secured debt $5 Total assets 13,071 GAAP Secured Indebtedness to Total Assets 0% Secured Indebtedness per Senior Notes Indenture September 30, 2020 Secured Indebtedness (1) $5 Adjusted Total Assets (2) 21,491 Secured Indebtedness to Total Assets 0% September 30, 2020 Mortgage and other secured debt $5 Secured Indebtedness $5

Financial Covenants: Reconciliation of GAAP Interest Coverage Ratio to Senior Notes Indenture EBITDA-to-Interest Coverage Ratio (unaudited, in millions, except ratios) The following tables present the calculation of our interest coverage ratio using our GAAP measures and as used in the financial covenants of the senior notes indenture: (1) See Reconciliation of GAAP Leverage Ratio to Credit Facility Leverage Ratio for the calculation of Adjusted Credit Facility EBITDA and reconciliation to net income. (2)See Reconciliation of GAAP Interest Coverage Ratio to Credit Facility Unsecured Interest Coverage Ratio for reconciliation of GAAP interest expense to adjusted interest expense per our credit facility definition. This same measure is used for our senior notes. GAAP Interest Coverage Ratio Trailing twelve months September 30, 2020 Net income (loss) $(594) Interest expense 233 GAAP Interest Coverage Ratio (2.5x) EBITDA to Interest Coverage Ratio Trailing twelve months September 30, 2020 Adjusted Credit Facility EBITDA (1) $202 Non-controlling interest adjustment 1 Adjusted Senior Notes EBITDA $203 Adjusted Credit Facility interest expense (2) 179 EBITDA to Interest Coverage Ratio 1.1x

Financial Covenants: Reconciliation of GAAP Assets to Indebtedness Test to Senior Notes Unencumbered Assets to Unsecured Indebtedness Test (unaudited, in millions, except ratios) The following tables present the calculation of our total assets to total debt using GAAP measures and unencumbered assets to unsecured debt as used in the financial covenants of our senior notes indenture: (1) The following presents the reconciliation of adjusted total assets to unencumbered assets per the financial covenants of our senior notes indenture definition: GAAP Assets / Debt September 30, 2020 Total assets $13,071 Total debt 5,638 GAAP Total Assets / Total Debt 232% Unencumbered Assets / Unsecured Debt per Senior Notes Indenture September 30, 2020 Unencumbered Assets (1) $21,444 Unsecured Debt (2) 5,665 Unencumbered Assets / Unsecured Debt 379% September 30, 2020 Adjusted total assets (a) $21,491 Less: Partnership adjustments (33) Less: Current year impairment of assets held (14) Unencumbered Assets $21,444 (a) See reconciliation of GAAP Indebtedness Test to Senior Notes Indenture Indebtedness Test for reconciliation of GAAP Total Assets to Adjusted Total Assets per our senior notes indenture. (2) The following presents the reconciliation of total debt to unsecured debt per the financial covenants of our senior notes indenture definition: September 30, 2020 Total debt $5,638 Deferred financing costs 32 Less: Secured indebtedness (b) (5) Unsecured Debt $5,665 (b) See reconciliation of GAAP Secured Indebtedness Test to Senior Notes Indenture Secured Indebtedness Test for the reconciliation of mortgage and other secured debt to senior notes secured indebtedness.

Hotels with Suspended Operations The following table consists of hotels with suspended operations as of November 4, 2020: Location Property # of Rooms 1 Boston Sheraton Boston Hotel 1,220 2 Chicago The Westin Chicago River North 445 3 Washington, D.C (CBD). Hyatt Regency Washington on Capitol Hill 838 4 International ibis Rio de Janeiro Parque Olimpico 256

Overview Property level data capitalization Covid-19 data NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION

All Owned Hotel Operating Statistics and Results To facilitate a quarter-to-quarter comparison of our operations, we typically present certain operating statistics and operating results for the periods included in this presentation on a comparable hotel basis (discussed in “Comparable Hotel Operating Statistics” below). However, due to the COVID-19 pandemic and its effects on operations there is little comparability between periods. For this reason we are temporarily suspending our comparable hotel presentation and instead present hotel operating results for all consolidated hotels and, to facilitate comparisons between periods, we are presenting results on a pro forma basis, including the following adjustments: (1) operating results are presented for all consolidated hotels owned as of September 30, 2020, but do not include the results of operations for properties sold in 2019 or through the reporting date; and (2) operating results for acquisitions in the current and prior year are reflected for full calendar years, to include results for periods prior to our ownership. For these hotels, since the year-over-year comparison includes periods prior to our ownership, the changes will not necessarily correspond to changes in our actual results. Non-GAAP financial measures Included in this supplemental information are certain “non-GAAP financial measures,” which are measures of our historical or future financial performance that are not calculated and presented in accordance with GAAP, within the meaning of applicable SEC rules. They are as follows: (i) EBITDA, (ii) EBITDAre and Adjusted EBITDAre, (iii) NOI, (iv) All Owned Hotel Property Level Operating Results, (v) Credit Facility Financial Performance Tests, and (vi) Senior Notes Financial Performance Tests. The following discussion defines these measures and presents why we believe they are useful supplemental measures of our performance. Due to the loss of business during the COVID-19 pandemic, the managers of our hotels have significantly reduced wages and benefits expense through employee furloughs to preserve operating cash flow and have incurred, and expect to continue to incur, significant severance expenses. We expect that a portion of the reduction in wage and benefit expenses as a result of the terminations will become permanent due to changes in the hotel-level operating model based on negotiations with our managers when a future recovery in the lodging industry is achieved. While severance expense is not uncommon at either the individual hotel or corporate level, due to the scope of the operational changes currently under discussion with our hotel managers across much of our portfolio, as well as the potential for significant restructuring at an individual hotel-specific level, we do not consider the current severance costs to be within the normal course of business. Therefore, effective for the third quarter of 2020, we remove these amounts from hotel property level operating results and have changed our definition of Adjusted EBITDAre to exclude non-ordinary course severance costs, which we believe provides useful supplemental information that is beneficial to an investor’s understanding of our ongoing operating performance. Furlough costs, which are viewed as a replacement to wages, will continue to be included in these metrics. Notes to supplemental financial information

Non-GAAP financial measures (continued) EBITDA and NOI Earnings before Interest Expense, Income Taxes, Depreciation and Amortization (“EBITDA”) is a commonly used measure of performance in many industries. Management believes EBITDA provides useful information to investors regarding our results of operations because it helps us and our investors evaluate the ongoing operating performance of our properties after removing the impact of the Company’s capital structure (primarily interest expense) and its asset base (primarily depreciation and amortization). Management also believes the use of EBITDA facilitates comparisons between us and other lodging REITs, hotel owners that are not REITs and other capital-intensive companies. Management uses EBITDA to evaluate property-level results and EBITDA multiples (calculated as sales price divided by EBITDA) as one measure in determining the value of acquisitions and dispositions and, like Funds From Operations (“FFO”) and Adjusted FFO per diluted share, it is widely used by management in the annual budget process and for our compensation programs. Management also uses NOI when calculating capitalization rates (“Cap Rates”) to evaluate acquisitions and dispositions. For a specific hotel, NOI is calculated as the hotel or entity level EBITDA less an estimate for the annual contractual reserve requirements for renewal and replacement expenditures. Cap Rates are calculated as NOI divided by sales price. Management believes using Cap Rates allows for a consistent valuation method in comparing the purchase or sale value of properties. EBITDAre and Adjusted EBITDAre We present EBITDAre in accordance with NAREIT guidelines, as defined in its September 2017 white paper “Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate,” to provide an additional performance measure to facilitate the evaluation and comparison of the Company’s results with other REITs. NAREIT defines EBITDAre as net income (calculated in accordance with GAAP) excluding interest expense, income tax, depreciation and amortization, gains or losses on disposition of depreciated property (including gains or losses on change of control), impairment write-downs of depreciated property and of investments in unconsolidated affiliates caused by a decrease in value of depreciated property in the affiliate, and adjustments to reflect the entity’s pro rata share of EBITDAre of unconsolidated affiliates. We make additional adjustments to EBITDAre when evaluating our performance because we believe that the exclusion of certain additional items described below provides useful supplemental information to investors regarding our ongoing operating performance. We believe that the presentation of Adjusted EBITDAre, when combined with the primary GAAP presentation of net income, is beneficial to an investor’s understanding of our operating performance. Adjusted EBITDAre also is similar to the measure used to calculate certain credit ratios for our credit facility and senior notes. We adjust EBITDAre for the following items, which may occur in any period, and refer to this measure as Adjusted EBITDAre: Property Insurance Gains – We exclude the effect of property insurance gains reflected in our consolidated statements of operations because we believe that including them in Adjusted EBITDAre is not consistent with reflecting the ongoing performance of our assets. In addition, property insurance gains could be less important to investors given that the depreciated asset book value written off in connection with the calculation of the property insurance gain often does not reflect the market value of real estate assets. Notes to supplemental financial information

Non-GAAP financial measures (continued) Acquisition Costs – Under GAAP, costs associated with completed property acquisitions that are considered business combinations are expensed in the year incurred. We exclude the effect of these costs because we believe they are not reflective of the ongoing performance of the Company. Litigation Gains and Losses – We exclude the effect of gains or losses associated with litigation recorded under GAAP that we consider outside the ordinary course of business. We believe that including these items is not consistent with our ongoing operating performance. Severance Expense – Effective for the third quarter of 2020, in certain circumstances, we will add back hotel-level severance expenses when we do not believe they are reflective of the ongoing operation of our properties. Situations that would result in a severance add-back include (i) costs incurred as part of a broad-based reconfiguration of the operating model with the specific hotel operator for a portfolio of hotels and (ii) costs incurred at a specific hotel due to a broad-based and significant restructuring of a hotel and/or its workforce. We do not add back corporate-level severance costs or severance costs at an individual hotel that we consider to be incurred in the normal course of business. In unusual circumstances, we also may adjust EBITDAre for gains or losses that management believes are not representative of the Company’s current operating performance. The last such adjustment was a 2013 exclusion of a gain from an eminent domain claim. Limitations on the Use of EBITDA, EBITDAre, Adjusted EBITDAre and NOI EBITDA, EBITDAre, Adjusted EBITDAre, and NOI, as presented, may not be comparable to measures calculated by other companies. This information should not be considered as an alternative to net income, operating profit, cash from operations or any other operating performance measure calculated in accordance with GAAP. Cash expenditures for various long-term assets (such as renewal and replacement capital expenditures, with the exception of NOI), interest expense (for EBITDA, EBITDAre, Adjusted EBITDAre and NOI purposes only) severance expense related to significant property-level restructuring and other items have been and will be made and are not reflected in the EBITDA, EBITDAre, Adjusted EBITDAre, and NOI presentations. Management compensates 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. Notes to supplemental financial information

Non-GAAP financial measures (continued) Our consolidated statements of operations and consolidated statements of cash flows in the Company’s quarterly report on Form 10-Q (“Statements of Cash Flows”) include interest expense, capital expenditures, and other excluded items, all of which should be considered when evaluating our performance, as well as the usefulness of our non-GAAP financial measures. Additionally, EBITDA, EBITDAre, Adjusted EBITDAre and NOI should not be considered as a measure of our liquidity or indicative of funds available to fund our cash needs, including our ability to make cash distributions. Similarly, EBITDAre and Adjusted EBITDAre, include adjustments for the pro rata share of our equity investments. Our equity investments consist of interests ranging from 11% to 67% in seven domestic and international partnerships that own a total of 10 properties and a vacation ownership development. Due to the voting rights of the outside owners, we do not control and, therefore, do not consolidate these entities. The non-controlling partners in consolidated partnerships primarily consist of the approximate 1% interest in Host LP held by outside partners, and a 15% interest held by outside partners in a partnership owning one hotel for which we do control the entity and, therefore, consolidate its operations. These pro rata results for EBITDAre and Adjusted EBITDAre were calculated as set forth in the definitions above. Readers should be cautioned that the pro rata results presented in these measures for equity investments may not accurately depict the legal and economic implications of our investments in these entities. Hotel Property Level Operating Results We present certain operating results for our hotels, such as hotel revenues, expenses, food and beverage profit, and EBITDA, on a hotel-level pro forma basis as supplemental information for our investors. Our hotel results reflect the operating results of our hotels as discussed in “All Owned Hotel Operating Statistics and Results” above. We present all owned hotel pro forma EBITDA to help us and our investors evaluate the ongoing operating performance of our hotels after removing the impact of the Company’s capital structure (primarily interest expense) and its asset base (primarily depreciation and amortization expense). Corporate-level costs and expenses also are removed to arrive at property-level results. We believe these property-level results provide investors with supplemental information about the ongoing operating performance of our hotels. All owned hotel pro forma results are presented both by location and for the Company’s properties in the aggregate. While severance expense is not uncommon at the individual property level in the normal course of business, we eliminate from our hotel level operating results severance costs related significant property-level restructuring that is not considered to be within the normal course of business, as we believe this provides useful supplemental information that is beneficial to an investor’s understanding of our ongoing operating performance. We also eliminate depreciation and amortization expense because, even though depreciation and amortization expense are property-level expenses, these non-cash expenses, which are based on historical cost accounting for real estate assets, implicitly assume that the value of real estate assets diminishes predictably over time. As noted earlier, because real estate values have historically risen or fallen with market conditions, many real estate industry investors have considered presentation of historical cost accounting for operating results to be insufficient. Notes to supplemental financial information

Non-GAAP financial measures (continued) Because of the elimination of corporate-level costs and expenses, gains or losses on disposition, certain severance expenses and depreciation and amortization expense, the hotel operating results we present do not represent our total revenues, expenses, operating profit or net income and should not be used to evaluate our performance as a whole. Management compensates 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 consolidated statements of operations include such amounts, all of which should be considered by investors when evaluating our performance. While management believes that presentation of all owned hotel results is a measure that provides useful information in evaluating our ongoing performance, this measure is not used to allocate resources or to assess the operating performance of each of our hotels, as these decisions are based on data for individual hotels and are not based on all owned hotel results in the aggregate. For these reasons, we believe all owned hotel operating results, when combined with the presentation of GAAP operating profit, revenues and expenses, provide useful information to investors and management. Credit Facility – Leverage, Unsecured Interest Coverage and Consolidated Fixed Charge Coverage Ratios Host’s credit facility contains certain financial covenants, including allowable leverage, unsecured interest coverage and fixed charge ratios, which are determined using EBITDA as calculated under the terms of our credit facility (“Adjusted Credit Facility EBITDA”). The leverage ratio is defined as net debt plus preferred equity to Adjusted Credit Facility EBITDA. The unsecured interest coverage ratio is defined as unencumbered Adjusted Credit Facility EBITDA to unsecured consolidated interest expense. The fixed charge coverage ratio is defined as Adjusted Credit Facility EBITDA divided by fixed charges, which include interest expense, required debt amortization payments, cash taxes and preferred stock payments. These calculations are based on pro forma results for the prior four fiscal quarters, giving effect to transactions such as acquisitions, dispositions and financings as if they occurred at the beginning of the period. The credit facility also incorporates by reference the ratio of unencumbered assets to unsecured indebtedness test from our senior notes indentures, calculated in the same manner, and the covenant is discussed below with the senior notes covenants. Additionally, total debt used in the calculation of our leverage ratio is based on a “net debt” concept, under which cash and cash equivalents in excess of $100 million are deducted from our total debt balance. Management believes these financial ratios provide useful information to investors regarding our compliance with the covenants in our credit facility and our ability to access the capital markets, in particular debt financing. Notes to supplemental financial information

Non-GAAP financial measures (continued) Senior Notes Indenture – Indebtedness Test, Secured Indebtedness to Total Assets Test, EBITDA-to-Interest Coverage Ratio and Ratio of Unencumbered Assets to Unsecured Indebtedness Host’s senior notes indentures contains certain financial covenants, including allowable indebtedness, secured indebtedness to total assets, EBITDA-to-interest coverage and unencumbered assets to unsecured indebtedness. The indebtedness test is defined as adjusted indebtedness, which includes total debt adjusted for deferred financing costs, divided by adjusted total assets, which includes undepreciated real estate book values (“Adjusted Total Assets”). The secured indebtedness to total assets is defined as secured indebtedness, which includes mortgage debt and finance leases, divided by Adjusted Total Assets. The EBITDA-to-interest coverage ratio is defined as EBITDA as calculated under our senior notes indenture (“Adjusted Senior Notes EBITDA”) to interest expense as defined by our senior notes indenture. The ratio of unencumbered assets to unsecured indebtedness is defined as unencumbered adjusted assets, which includes Adjusted Total Assets less encumbered assets, divided by unsecured debt, which includes the aggregate principal amount of outstanding unsecured indebtedness plus contingent obligations. The covenants presented in this supplemental information are based on the financial covenants of our senior notes issues after we attained an investment grade rating, however the calculations before and after attaining investment grade status are essentially equivalent with no material differences between the two. Under the terms of the senior notes indentures, interest expense excludes items such as the gains and losses on the extinguishment of debt, deferred financing charges related to the senior notes or the credit facility, amortization of debt premiums or discounts that were recorded at issuance of a loan to establish its fair value and non-cash interest expense, all of which are included in interest expense on our consolidated statement of operations. As with the credit facility covenants, management believes these financial ratios provide useful information to investors regarding our compliance with the covenants in our senior notes indentures and our ability to access the capital markets, in particular debt financing. Limitations on Credit Facility and Senior Notes Credit Ratios These metrics are useful in evaluating the Company’s compliance with the covenants contained in its credit facility and senior notes indentures. However, because of the various adjustments taken to the ratio components as a result of negotiations with the Company’s lenders and noteholders they should not be considered as an alternative to the same ratios determined in accordance with GAAP. For instance, interest expense as calculated under the credit facility and senior notes indenture excludes the items noted above such as deferred financing charges and amortization of debt premiums or discounts, all of which are included in interest expense on our consolidated statement of operations. Management compensates for these limitations by separately considering the impact of these excluded items to the extent they are material to operating decisions or assessments of performance. In addition, because the credit facility and indenture ratio components are also based on pro forma results for the prior four fiscal quarters, giving effect to transactions such as acquisitions, dispositions and financings as if they occurred at the beginning of the period, they are not reflective of actual performance over the same period calculated in accordance with GAAP. Notes to supplemental financial information