Monthly P&L Results August 2020...Profit Margins improving but remain poor overall Monthly P&L...

Monthly P&L ResultsAugust 2020

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Source: STR. 2020 © CoStar Realty Information, Inc.

U.S. Profitability shows little improvement in AugustU.S. Monthly P&L KPIs – 2020 YTD vs 2019 YTD

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Total LPAR % Chg

5.0%

-31.2%

-72.8%

-72.7%

-59.6%

-64.8%

-64.4%

1.7%

EBITDA PAR % Chg

-116.8%

-140.2%

-140.9%

-124.6%

-115.1%

-112.1%

0.8%

1.4%

GOPPAR % Chg

-101.7%

-116.9%

-117.7%

-105.4%

-93.3%

-91.3%

1.0%

1.4%

TRevPAR % Chg

January

February

March

April

May

June

July

August

-64.0%

-92.9%

-92.6%

-81.3%

-74.1%

-74.5%

2.7%

0.9%

2019

2020 $106.36-57.6%

$250.69

TRevPAR

$20.63-78.8%

$97.18

GOPPAR

$2.57-96.4%

$71.21

EBITDA - PAR

$50.44-41.7%

$86.55

LPAR - Labor Costs


Profit Margins improving but remain poor overallMonthly P&L Program – August 2020 and August 2019

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Total Revenues (Per AvailableRoom Night)

Gross Operating Profit / TotalRevenues

Earnings Before Interest, IncomeTax, Depreciation, and

Amortization / Total RevenuesTotal Labor Costs / Total Revenues

Includes rooms, F&B, other depts,misc income

Includes departmental expenses, A&G,I&TS, marketing, maintenance, utilities

excludes fixed expense

Includes operating expense,management fees, non-operating

income, rent, property tax, insurance,other fixed

Includes all labor costs from alldepartments including salaries, wages,

benefits, payroll tax, bonuses,contract, and outsourced labor

2019

2020$55.72-74.5%

$218.33

TRevPAR

12.4%

-23.9%

36.3%

GOP % of Revenues

-12.5%

-38.9%

26.4%

EBITDA % of Revenues

48.8%

13.8%

35.0%

Labor Costs % of Revenues


Demand decline improved, but Revenue improvements stagnateU.S. Revenue & Expense % Change – August 2020 vs August 2019

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DemandRooms Revenue

Food RevenueBeverage Revenue

Other F&B RevenueOther Dept Revenue

Miscellaneous IncomeTotal Revenue

Rooms ExpenseF&B Expense

Other Dept ExpenseA&G ExpenseI&TS Expense

Marketing ExpensePOM Expense

Utilities ExpenseGOP

Property TaxesInsurance Expense

EBITDATotal Labor Costs -63.5%

-112.4%

-9.9%

-13.9%

-91.1%

-37.7%

-46.6%

-68.6%

-41.4%

-50.8%

-67.4%

-75.9%

-66.3%

-73.8%

-54.3%

-57.9%

-101.8%

-77.2%

-83.1%

-72.9%

-56.5%


Upper Upscale, Airport, and Urban locations continue to struggleMonthly P&L Program – August 2020 vs August 2019

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Full-Service

Limited-Service

-75.7%

-63.5%

-94.0%

-74.5%

Luxury Class

Upper Upscale Class

Upscale Class

Upper Midscale Class

Midscale Class

-70.5%

-79.0%

-66.9%

-67.6%

-29.4%

-89.4%

-97.4%

-78.7%

-76.3%

-34.1%

Airport

Interstate

Resort

Small Metro/Town

Suburban

Urban

-76.6%

-55.6%

-65.7%

-35.5%

-71.0%

-83.1% -106.3%

-95.5%

-63.7%

-76.2%

-37.8%

-83.6%

TRevPAR % Change GOPPAR % Change


Revenues improving, but Profits remain weak compared to last yearTRevPAR & GOPPAR indexed to same months last year

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January February March April May June July August January February March April May June July August

0%

20%

40%

60%

80%

100%

120%

TRevP

-20%

0%

20%

40%

60%

80%

100%

120%

GOPP

104% 106%

32%

16%24% 25%

6% 6%

97%91%

48%

18% 19%

37%43%

38%

103% 106%

-19% -21%-10%

-3%

3% 6%

93% 90%

20% 22%28% 26%

-4%

5%

Full-ServiceLimited-Service


Beverage outperforming Food, but lack of groups hurt Other F&BF&B Revenues POR – Monthly YTD 2019 and 2020

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2019 2020

January February March April May June July August January February March April May June July August

$0

$20

$40

$60

$80

Food $5

$10

$15

$20

$25

Bev P

($10)

$0

$10

$20

$30

Othe

$75.10 $77.34$73.25

$61.67

$74.52

$60.44

$50.49 $48.09

$73.30$77.43

$63.23

$13.83 $16.92$23.37

$29.36$21.52

$20.99$23.37 $22.48

$18.33

$22.63

$19.11$17.15 $17.08

$21.67$23.75

$21.16

$12.44$14.64

$10.32

$2.48

$7.43

$23.57$27.67

$23.32$18.70

$25.48

$20.07

$12.06 $13.51

$25.27 $25.83

$-7.28 $-7.09$-3.82

$-0.58 $-0.61

$4.97


Full-Service Limited-Service

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28%

-200%

-150%

-100%

-50%

0%

50%

100%

GOP

-200%

-150%

-100%

-50%

0%

50%

100%

GOP

Percent of Hotels

20192020

37% of Full-Service hotels with GOP losses in August; Only 11% for LSDistribution of Profit Margins – August 2019 vs. August 2020

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Median GOPPAR down $86 for Top MarketsProfitability Matrix - Select Full-Service Markets, August 2020 and August 2019

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-300% -200% -100% 0%

GOP margin

($40)

($20)

$0

$20

$40

Anaheim/Santa Ana, CA

Boston, MA

Chicago, IL

Minneapolis/St Paul, MN-WI

New York, NY

-4%

-$1

August 2020

0%

GOP margin

$0

$50

$100

$150

GOPPAnaheim/Santa Ana, CA

Boston, MA

Chicago, IL

Denver, CO

Houston, TX

Los Angeles/Long Beach, CA

Miami/Hialeah, FL New Orleans, LA

New York, NY

Philadelphia, PA-NJ

San Francisco/San Mateo, CA

Washington, DC-MD-VA

34%

$85

August 2019


TRevPAR slows for Top Markets, but 8 show positive GOPPARMonthly P&L Program – August 2020

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Anaheim/Santa Ana, CATampa/St Petersburg, FL

Phoenix, AZLos Angeles/Long Beach, CA

Philadelphia, PA-NJAtlanta, GA

San Diego, CAMiami/Hialeah, FL

San Francisco/San Mateo, CADenver, COSeattle, WAOrlando, FL

Dallas, TXNew York, NY

Washington, DC-MD-VABoston, MA

New Orleans, LAHouston, TX

Chicago, ILMinneapolis/St Paul, MN-WI $8.32

$14.71

$27.56

$27.68

$32.45

$34.57

$36.85

$38.70

$39.26

$45.64

$46.33

$53.72

$58.62

$60.40

$61.10

$64.96

$65.69

$72.32

$79.29

$87.91

$-1.36

$7.58

$3.29

$0.19

$4.65

$9.68

$6.88

$5.97

$18.72

$19.82

$-9.89

$-7.40

$-21.76

$-8.26

$-13.66

$-26.20

$-11.33

$-1.10

$-1.36

$-18.92

$-15.23

TRevPARGOPPAR


Select U.S. Markets – TRevPAR & GOPPAR % ChangeMonthly P&L Program – August 2020 vs August 2019

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TRevPAR % Change GOPPAR % Change

Minneapolis/St Paul, MN-WIChicago, IL

Boston, MANew York, NY

Seattle, WAOrlando, FL

San Francisco/San Mateo, CANew Orleans, LA

Washington, DC-MD-VADenver, CO

San Diego, CASt Louis, MO-IL

Dallas, TXLos Angeles/Long Beach, CA

Houston, TXMiami/Hialeah, FL

Nashville, TNPhiladelphia, PA-NJ

Atlanta, GAAnaheim/Santa Ana, CATampa/St Petersburg, FL

Detroit, MI -52.3%

-61.0%

-65.4%

-65.7%

-69.4%

-69.5%

-73.5%

-73.9%

-76.1%

-76.9%

-77.7%

-79.0%

-80.1%

-80.8%

-81.7%

-82.2%

-82.7%

-85.6%

-86.7%

-89.5%

-92.2%

-93.0%

-53.9%

-69.4%

-79.4%

-80.5%

-89.1%

-88.1%

-100.3%

-96.2%

-90.7%

-85.8%

-99.3%

-94.2%

-96.1%

-124.5%

-102.7%

-104.6%

-117.1%

-104.2%

-125.1%

-117.1%

-117.6%

-111.8%

Source: 2020 STR, LLC / STR Global, Ltd. trading as "STR". © CoStar Realty Information, Inc. Any reprint, use or republication of all or a part of this presentation without the prior written approval of STR is strictly prohibited. Any such reproduction shall specifically credit STR as the source. This presentation is based on data collected by STR. The information in the presentation should not be construed as investment, tax, accounting or legal advice.

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Monthly P&L Results August 2020...Profit Margins improving but remain poor overall Monthly P&L...

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