Financial Analysis

Commitments and Contingencies Litigation We are subject to various claims, lawsuits and legal proceedings, including routine litigation arising in the ordinary course of business regarding the operation of our hotels and other Company matters. While it is not possible to ascertain the ultimate outcome of such matters, management believes that the aggregate amount of such liabilities, if any, in excess of amounts covered by insurance will not have a material adverse impact on our financial condition or results of operations and comprehensive income. The outcome of claims, lawsuits and legal proceedings brought against the Company, however, is subject to significant uncertainties.

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Debt The following table sets forth information regarding the Companys debt (dollars in thousands): Principal Balance as of Loan Interest Rate Maturity Date June 30, 2026 December 31, 2025 Term 1 Loan SOFR + 1.35% (1) January 2028 (2) $ 500,000 $ 500,000 Term 3 Loan SOFR + 1.35% (1) January 2029 (2) 300,000 300,000 Term 2 Loan SOFR + 1.35% (1) January 2030 300,000 300,000 Senior unsecured credit facility SOFR + 1.40% January 2030 (2) Total debt 1,100,000 1,100,000 Unamortized debt issuance costs (3) (962) (1,150) Debt, net of unamortized debt issuance costs $ 1,099,038 $ 1,098,850 Weighted-Average Interest Rate (4) 4.90% _____________________________ (1) As of June 30, 2026, the interest rate on the portion of variable-rate debt subject to interest rate swaps was 4.83%, and the interest rate on the remaining variable-rate debt was 4.97%. (2) Maturity date may be extended for two additional six-month periods upon the payment of applicable fees and the satisfaction of certain customary conditions. (3) Excludes debt issuance costs related to our senior unsecured credit facility, which are included within Prepaid and Other Assets on the accompanying consolidated balance sheets. (4) Includes the effect of interest rate swaps. See Note 6 for additional disclosures on interest rate swaps. Senior Unsecured Credit Facility and Unsecured Term Loans We are party to a Seventh Amended and Restated Credit Agreement (the Credit Facility) that provides for a $400.0 million revolving credit f …

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Equity Incentive Plans We are authorized to issue up to 7,900,000 shares of our common stock under our 2024 Equity Incentive Plan (the 2024 Plan), of which we have issued or committed to issue 4,111,013 share s as of June 30, 2026. Shares underlying awards that are granted under the 2024 Plan that are forfeited, cancelled, reacquired prior to vesting, satisfied without the issuance of stock or otherwise terminated (other than by exercise), including shares tendered or held back upon settlement of an award, other than a stock option or stock appreciation right, to cover the tax withholding will be added back to the shares available for issuance under the 2024 Plan. Restricted Stock Awards Restricted stock awards issued to our officers and employees generally vest over a three to five year period from the date of grant based on continued employment. We measure compensation expense for the restricted stock awards based upon the fair market value of our common stock at the date of grant. Compensation expense is recognized on a straight-line basis over the vesting period and is included in corporate expenses in the accompanying consolidated statements of operations and comprehensive income. A summary of our restricted stock awards from January 1, 2026 to June 30, 2026 is as follows: Number of Shares Weighted- Average Grant Date Fair Value Unvested balance at January 1, 2026 841,105 $ 8.49 Granted 465,584 9.88 Vested (416,949) 8.70 Unvested balance at June 30, 2026 889,740 $ 9.12 T …

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Fair Value Measurements The fair value of certain financial assets and liabilities and other financial instruments are as follows (in thousands): June 30, 2026 December 31, 2025 Carrying Amount (1) Fair Value Carrying Amount (1) Fair Value Debt $ 1,099,038 $ 1,100,000 $ 1,098,850 $ 1,100,000 _____________________________ (1) The carrying amount of debt is net of unamortized debt issuance costs. We have determined that the fair value of debt and interest rate swaps are classified as Level 2 measurements within the fair value hierarchy. We estimate the fair value of the interest rate swaps based on the interest rate yield curve and implied market volatility as inputs and adjusted for the counterparty's credit risk. We concluded the inputs for the credit risk valuation adjustment are Level 3 inputs; however these inputs are not significant to the fair value measurement in its entirety. The fair values of our other financial instruments not included in the table above are estimated to be equal to their carrying amount.

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"Recently Issued Accounting Pronouncements In November 2024, the Financial Accounting Standards Board issued Accounting Standards Update (""ASU"") No. 2024-03 (""ASU 2024-03""), Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses , requiring public entities to disclose additional information about specific expense categories in the notes to the financial statements on an interim and annual basis. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, with early adoption permitted. We are currently evaluating the impact of adopting ASU 2024-03."

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Segment Reporting We have one reportable segment, which is hotel ownership. The hotel ownership segment is mostly comprised of upper upscale and luxury chain scale hotels that offer hotel rooms, food and beverage and other ancillary guest services. The Companys chief operating decision maker (CODM) is the Executive Committee which includes: 1) the Chief Executive Officer, 2) the President and Chief Operating Officer, 3) the Executive Vice President, Chief Financial Officer & Treasurer, and 4) the Senior Vice President, General Counsel & Corporate Secretary. The CODM evaluates the hotel ownership segment primarily based on hotel adjusted earnings (loss) before interest income and expense, taxes and depreciation and amortization (Hotel Adjusted EBITDA). The CODM uses Hotel Adjusted EBITDA to evaluate the ongoing operational performance of our hotels and effectiveness of the third-party management companies operating our business on a property-level basis, in order to make informed decisions on how to allocate resources. Hotel Adjusted EBITDA is also used to monitor budget versus actual results. The monitoring of budgeted versus actual results is used in assessing performance of the segment and in establishing managements compensation. Hotel Adjusted EBITDA, presented herein, is calculated as EBITDA from hotel operations, adjusted to exclude the following items that are not reflective of our ongoing operating performance or incurred in the normal course of business, and …

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"Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited interim consolidated financial statements and related notes have been prepared in accordance with United States Generally Accepted Accounting Principles (U.S. GAAP). We have condensed or omitted certain disclosures normally included in annual financial statements presented in accordance with U.S. GAAP; however, we believe the disclosures made are adequate to prevent the information presented from being misleading. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2025. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement of results for the interim periods have been included. Interim results are not necessarily indicative of full-year performance, as a result of the impact of seasonal and other short-term variations and the acquisitions and/or dispositions of hotel properties. Use of Estimates The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from th …

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Equity Common Shares We are authorized by our charter to issue up to 400 million shares of common stock, $0.01 par value per share. Each outstanding share of common stock entitles the holder to one vote on all matters submitted to a vote of stockholders. Holders of our common stock are entitled to receive dividends out of assets legally available for the payment of dividends when authorized by our board of directors. In August 2024, our board of directors approved an at-the-market equity offering program (the ATM Program), pursuant to which we may issue and sell shares of our common stock from time to time, having an aggregate offering price of up to $200.0 million. No shares were sold under the ATM Program during the six months ended June 30, 2026. In April 2026, our board of directors authorized the repurchase of up to $300 million of our common stock under a new share repurchase program effective May 1, 2026 (the Share Repurchase Program). The Share Repurchase Program replaced our prior $200 million share repurchase program that was authorized in May 2024. The timing and actual number of shares repurchased will depend on a variety of factors, including price and general business and market conditions. The Share Repurchase Program does not obligate us to acquire any particular amount of shares, and may be suspended or discontinued at any time at our discretion. The Share Repurchase Program will expire on May 1, 2028. During the six months ended June 30, 2026, we repurchased …

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