DiamondRock Hospitality Co

Previous wording

•negative developments in the economy, including, but not limited to elevated interest rates and costs due to recent inflation, job loss or growth trends, an increase in unemployment, other macroeconomic effects due to global instability or conflict or a decrease in corporate earnings and investment;

Current wording

•negative developments in the economy, including, but not limited to elevated interest rates, persistent inflation and related increased costs, job loss or growth trends, an increase in unemployment, other macroeconomic effects due to global instability or conflict or a decrease in corporate earnings and investment;

Previous wording

Our strategy is to apply aggressive asset management, prudent financial strategy, and disciplined capital allocation to high quality lodging properties in U.S. urban and resort markets with superior growth prospects and high barriers-to-entry. Our goal is to drive long-term stockholder returns that exceed those generated by our peers by growing free cash flow per share through disciplined capital allocation, including reinvestment in our portfolio and capital recycling, while returning capital through share repurchases and dividends.

Current wording

Our strategy is to apply aggressive asset management, prudent financial strategy, and disciplined capital allocation to high quality lodging properties in U.S. urban and resort markets with superior growth prospects and high barriers-to-entry. Our goal is to drive long-term stockholder returns that exceed those generated by our peers by growing free cash flow through disciplined capital allocation, including reinvestment in our portfolio and capital recycling, while returning capital through share repurchases and dividends.

Previous wording

Occupancy, ADR, RevPAR, and Total RevPAR are commonly used measures within the hotel industry to evaluate operating performance. RevPAR, which is calculated as the product of ADR and occupancy percentage, and Total RevPAR, which is calculated as total revenues divided by room nights available, are important statistics for monitoring operating performance at the individual hotel level and across our portfolio. We evaluate individual hotel RevPAR and Total RevPAR performance on an absolute basis with comparisons to budget and prior periods, as well as on a company-wide and regional basis. Room revenue comprised approximately 64% of our total revenues for the six months ended June 30, 2026 and is dictated by demand, as measured by occupancy percentage, pricing, as measured by ADR, and our available supply of hotel rooms.

Current wording

Occupancy, ADR, RevPAR, and Total RevPAR are commonly used measures within the hotel industry to evaluate operating performance. RevPAR, which is calculated as the product of ADR and occupancy percentage, and Total RevPAR, which is calculated as total revenues divided by room nights available, are important statistics for monitoring operating performance at the individual hotel level and across our portfolio. We evaluate individual hotel RevPAR and Total RevPAR performance relative to forecast and prior periods, as well as against local market benchmarks, including competitive set performance and RevPAR Index trends. Room revenue comprised approximately 65% of our total revenues for the nine months ended September 30, 2026 and is dictated by demand, as measured by occupancy percentage, pricing, as measured by ADR, and our available supply of hotel rooms.

Previous wording

The outlook for the remainder of 2026 remains subject to economic, geopolitical and market uncertainty, including evolving conditions in the Middle East, inflationary pressures, labor market conditions and uncertainty regarding the timing and magnitude of future interest rate changes. Travel demand remained strong through the first half of 2026, contributing to growth in occupancy, ADR and hotel revenues across many of our markets. While performance varied by property and customer segment, lodging fundamentals remained favorable and supported continued growth in operating results. We continue to monitor the potential favorable or unfavorable impacts of these and other factors on our business, operations, financial condition, future results of operations and cash flow, which remain dependent on future developments and subject to the risk factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2025 and this Quarterly Report on Form 10-Q for the quarter ended June 30, 2026.

Current wording

The outlook for the remainder of 2026 remains subject to economic, geopolitical and market uncertainty, including evolving conditions in the Middle East, persistent inflationary pressures, labor market conditions, elevated interest rates, increased borrowing costs, market volatility, and uncertainty regarding future monetary policy and capital market conditions. Travel demand remained strong through the first nine months of 2026, contributing to growth in occupancy, ADR and hotel revenues across many of our markets. While performance varied by property and customer segment, lodging fundamentals remained favorable and supported continued growth in operating results. We continue to monitor the potential favorable or unfavorable impacts of these and other factors on our business, operations, financial condition, future results of operations and cash flow, which remain dependent on future developments and subject to the risk factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2025 and this Quarterly Report on Form 10-Q for the quarter ended September 30, 2026.

Previous wording

The following tables set forth certain operating information for the six months ended June 30, 2026 for each of our hotels owned during the period.

Current wording

The following table sets forth certain operating information for the nine months ended September 30, 2026 for each of our hotels owned during the period.

Previous wording

Food and beverage revenues increased $2.0 million from the three months ended June 30, 2025 to the three months ended June 30, 2026, primarily due to growth in outlet revenues.

Current wording

Food and beverage revenues increased $4.8 million from the three months ended September 30, 2025 to the three months ended September 30, 2026, primarily due to growth in banquet and catering revenue, driven by increased group spending, and higher outlet revenue.

Previous wording

Other revenues, which primarily represent spa, parking, resort fees and attrition and cancellation fees, increased by $1.2 million from the three months ended June 30, 2025 to the three months ended June 30, 2026, primarily due to an increase in resort fees.

Current wording

Other revenues, which primarily represent spa, parking, resort fees and attrition and cancellation fees, increased by $1.1 million from the three months ended September 30, 2025 to the three months ended September 30, 2026, primarily due to an increase in resort fees.

Previous wording

Hotel operating expenses. Hotel operating expenses consists of the following (dollars in thousands):

Current wording

Hotel operating expenses. Hotel operating expenses consist of the following (dollars in thousands):

Previous wording

Depreciation and amortization. Depreciation and amortization on our hotel buildings is generally recorded over a 40-year period subsequent to acquisition. Depreciable lives of hotel furniture, fixtures and equipment are estimated as the time period between the acquisition date and the date that the hotel furniture, fixtures and equipment will be replaced. Our depreciation and amortization expense increased $0.7 million from the three months ended June 30, 2025 to the three months ended June 30, 2026, primarily due to the renovations and rebrandings that were completed in 2025 and in the first half of 2026.

Current wording

Depreciation and amortization. Our depreciation and amortization expense increased $0.2 million from the three months ended September 30, 2025 to the three months ended September 30, 2026, primarily due to the renovations and rebrandings that were completed in 2025 and in the first half of 2026.

Previous wording

Corporate expenses. Corporate expenses principally consist of employee-related costs, including payroll, bonus, restricted stock and benefits. Corporate expenses also include corporate operating costs, professional fees and directors' fees. Our corporate expenses increased $1.0 million from the three months ended June 30, 2025 to the three months ended June 30, 2026, primarily due to an increase in employee-related costs.

Current wording

Corporate expenses. Corporate expenses principally consist of employee-related costs, including payroll, bonus, restricted stock and benefits. Corporate expenses also include corporate operating costs, professional fees and directors’ fees. Our corporate expenses increased $2.4 million from the three months ended September 30, 2025 to the three months ended September 30, 2026, primarily due to an increase in employee-related costs.

Previous wording

Interest expense. Our interest expense decreased $0.4 million from the three months ended June 30, 2025 to the three months ended June 30, 2026 and was comprised of the following (dollars in thousands):

Current wording

Interest expense. Our interest expense decreased $2.5 million from the three months ended September 30, 2025 to the three months ended September 30, 2026 and was comprised of the following (dollars in thousands):

Previous wording

The decrease in interest expense was due to our mortgage debt repayments in 2025, which was offset by the amendment to our Credit Facility in July 2025 that increased our unsecured term loans by $300 million. In addition, finance lease expense decreased due to the sale of Courtyard New York Manhattan/Fifth Avenue in May 2026.

Current wording

The decrease in interest expense was due to our mortgage debt repayments in 2025. In addition, finance lease expense decreased due to the sale of Courtyard New York Manhattan/Fifth Avenue in May 2026.

Previous wording

All properties owned during the periods presented have been included in our results of operations during the respective periods since their date of acquisition or through their date of disposition, as applicable. The operating results are not directly comparable for the three months ended June 30, 2026 and 2025 due to the sale of The Westin Washington, D.C. City Center on February 19, 2025 (the “2025 Disposition”) and the sale of Courtyard New York Manhattan/Fifth Avenue on May 1, 2026 (the “2026 Disposition”).

Current wording

The operating results are not directly comparable for the nine months ended September 30, 2026 and 2025 due to the sale of The Westin Washington, D.C. City Center on February 19, 2025 (the “2025 Disposition”) and the 2026 Disposition.

Previous wording

Rooms revenues increased by $10.4 million from the six months ended June 30, 2025 to the six months ended June 30, 2026. Excluding a decrease of $6.1 million due to our 2025 and 2026 Dispositions, room revenues increased $16.5 million driven primarily by an increase in ADR, as well as higher occupancy at L'Auberge de Sedona and Cavallo Point.

Current wording

Rooms revenues increased by $16.8 million from the nine months ended September 30, 2025 to the nine months ended September 30, 2026. Excluding the $11.7 million decrease attributable to our 2025 and 2026 Dispositions, room revenues increased $28.5 million driven by increases in both ADR and occupancy. The increase was primarily driven by higher transient demand across the business and leisure segments, as well as higher group revenue. The most significant contributors to the increase were L’Auberge de Sedona, Chicago Marriott Downtown Magnificent Mile, and Cavallo Point, The Lodge at the Golden Gate.

Previous wording

The following are key hotel operating statistics for the six months ended June 30, 2026 and 2025. The operating statistics for the six months ended June 30, 2025 reflect the comparable period in 2025 to our 2026 ownership period.

Current wording

The following are key hotel operating statistics for the nine months ended September 30, 2026 and 2025. The operating statistics for the nine months ended September 30, 2025 reflect the comparable period in 2025 to our 2026 ownership period.

Previous wording

Food and beverage revenues increased $2.3 million from the six months ended June 30, 2025 to the six months ended June 30, 2026, primarily due to growth in outlet revenues, offset by a decrease of $0.5 million due to our 2025 Disposition.

Current wording

Food and beverage revenues increased $7.0 million from the nine months ended September 30, 2025 to the nine months ended September 30, 2026, primarily due to growth in outlet revenue and banquet and catering revenue, driven by increased group spend, offset by a decrease of $0.5 million due to our 2025 Disposition.

Previous wording

Other revenues, which primarily represent spa, parking, resort fees and attrition and cancellation fees, increased by $3.2 million from the six months ended June 30, 2025 to the six months ended June 30, 2026, primarily due to an increase in resort fees, offset by a decrease of $0.3 million due to our 2025 and 2026 Dispositions.

Current wording

Other revenues, which primarily represent spa, parking, resort fees and attrition and cancellation fees, increased by $4.3 million from the nine months ended September 30, 2025 to the nine months ended September 30, 2026, primarily due to an increase in resort fees and, to a lesser extent, higher attrition and cancellation fees, offset by a decrease of $0.4 million due to our 2025 and 2026 Dispositions.

Previous wording

Hotel operating expenses. Hotel operating expenses consists of the following (dollars in thousands):

Current wording

Hotel operating expenses. Hotel operating expenses consist of the following (dollars in thousands):

Previous wording

Our hotel operating expenses decreased $7.6 million from the six months ended June 30, 2025 to the six months ended June 30, 2026. A decrease of $5.4 million was attributable to our 2025 and 2026 Dispositions. Excluding the impact of the 2026 Disposition, hotel operating expenses decreased primarily due to property tax appeal settlements recognized in the second quarter of 2026 at our Chicago properties. Including the increase in incentive management fees, the net benefit from these settlements was $6.9 million. In addition, rooms and food and beverage expenses remained generally flat as a result of favorable labor productivity and cost controls.

Current wording

Our hotel operating expenses decreased $4.2 million from the nine months ended September 30, 2025 to the nine months ended September 30, 2026. Excluding a decrease of $9.4 million attributable to our 2025 and 2026 Dispositions, hotel operating expenses increased $5.2 million primarily due to higher departmental and support expenses associated with increased occupancy. These increases were partially offset by prior year property tax appeal settlements recognized in the second quarter of 2026 at our Chicago properties. Including the increase in incentive management fees, the net benefit from these settlements was $6.9 million. During the nine months ended September 30, 2026, we also recognized a benefit of $0.9 million from a prior year property tax appeal settlement at the Worthington Renaissance Fort Worth Hotel.

Previous wording

Corporate expenses. Corporate expenses principally consist of employee-related costs, including payroll, bonus, restricted stock and benefits. Corporate expenses also include corporate operating costs, professional fees and directors' fees. Our corporate expenses increased $1.1 million from the six months ended June 30, 2025 to the six months ended June 30, 2026, primarily due to an increase in employee-related costs.

Current wording

Corporate expenses. Corporate expenses principally consist of employee-related costs, including payroll, bonus, restricted stock and benefits. Corporate expenses also include corporate operating costs, professional fees and directors’ fees. Our corporate expenses increased $3.5 million from the nine months ended September 30, 2025 to the nine months ended September 30, 2026, primarily due to an increase in employee-related costs.

Previous wording

Interest expense. Our interest expense decreased $0.9 million from the six months ended June 30, 2025 to the six months ended June 30, 2026 and was comprised of the following (dollars in thousands):

Current wording

Interest expense. Our interest expense decreased $3.4 million from the nine months ended September 30, 2025 to the nine months ended September 30, 2026 and was comprised of the following (dollars in thousands):

Previous wording

The decrease in interest expense was due to our mortgage debt repayments in 2025, which was mostly offset by the amendment to our Credit Facility in July 2025 that increased our unsecured term loans by $300 million. In addition, finance lease expense decreased due to the sale of Courtyard New York Manhattan/Fifth Avenue in May 2026.

Current wording

The decrease in interest expense was due to our mortgage debt repayments in 2025, which were mostly offset by the amendment to our Credit Facility in July 2025 that increased our unsecured term loans by $300 million. In addition, finance lease expense decreased due to the sale of Courtyard New York Manhattan/Fifth Avenue in May 2026.

Previous wording

Our long-term liquidity requirements consist primarily of funds necessary to pay for the costs of acquiring additional hotels, renovations and other capital expenditures that need to be made periodically to our hotels, debt payments, debt maturities, ground lease payments, share repurchases, and making distributions to our common stockholders. We expect to meet our short- and long-term liquidity requirements through various sources of capital, including cash provided by operations, borrowings, issuances of additional equity, and/or debt securities and proceeds from property dispositions, and we anticipate that these sources will provide adequate capital for the next 12 months and beyond. Our ability to incur additional debt is dependent upon a number of factors, including the state of the credit markets, our degree of leverage, the value of our unencumbered assets and borrowing restrictions imposed by existing lenders. Our ability to raise capital through the issuance of additional equity and/or debt securities is also dependent on a number of factors including the current state of the capital markets, investor sentiment and our intended use of proceeds. We may need to raise additional capital if we identify acquisition opportunities that meet our investment objectives and require liquidity in excess of existing cash balances. Our ability to raise funds through the issuance of equity securities depends on, among other things, general market conditions for hotel companies and REITs and market perceptions about us.

Current wording

Our long-term liquidity requirements consist primarily of funds necessary to pay for the costs of acquiring additional hotels, renovations and other capital expenditures that need to be made periodically to our hotels, debt service, debt maturities, ground lease payments, share repurchases, and distributions to our common stockholders. We expect to meet our short- and long-term liquidity requirements through various sources of capital, including cash provided by operations, borrowings, issuances of additional equity, and proceeds from property dispositions, and we anticipate that these sources will provide adequate capital for the next 12 months and beyond. Our ability to incur additional debt is dependent upon a number of factors, including the state of the credit markets, our degree of leverage, the value of our unencumbered assets and borrowing restrictions imposed by existing lenders. Our ability to raise capital through the issuance of additional equity and/or debt securities is also dependent on a number of factors including the current state of the capital markets, investor sentiment and our intended use of proceeds. We may need to raise additional capital if we identify acquisition opportunities that meet our investment objectives and require liquidity in excess of existing cash balances. Our ability to raise funds through the issuance of equity securities depends on, among other things, general market conditions for hotel companies and REITs and market perceptions about us.

Previous wording

We believe that we maintain a reasonable amount of debt. As of June 30, 2026, we had $1.1 billion of debt outstanding with a weighted average interest rate of 4.90%, which includes the effect of interest rate swaps, and a weighted average maturity date of approximately 3.2 years, assuming all extension options available in our debt agreements are exercised.

Current wording

We believe that we maintain a reasonable amount of debt. As of September 30, 2026, we had $1.1 billion of debt outstanding with a weighted average interest rate of 5.07%, which includes the effect of interest rate swaps, and a weighted average maturity date of approximately 2.8 years, assuming all extension options available in our debt agreements are exercised.

Previous wording

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 three and six months ended June 30, 2026.

Current wording

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 three and nine months ended September 30, 2026.

Previous wording

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”). This 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 189,265 shares of common stock at an average price of $9.79 per share for a total purchase price of $1.9 million. During the six months ended June 30, 2025, we repurchased 3,097,942 shares of common stock at an average price of $7.64 per share for a total purchase price of $23.7 million under this program. As of July 30, 2026, we have $299.4 million of authorized capacity remaining under the Share Repurchase Program.

Current wording

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”). This 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 nine months ended September 30, 2026, we repurchased 189,265 shares of common stock at an average price of $9.79 per share for a total purchase price of $1.9 million. During the nine months ended September 30, 2025, we repurchased 4,597,942 shares of common stock at an average price of $7.71 per share for a total purchase price of $35.5 million under our prior $200 million share repurchase program. As of November 3, 2026, we have $299.4 million of authorized capacity remaining under the Share Repurchase Program.

Previous wording

We are party to a Seventh Amended and Restated Credit Agreement (the “Credit Facility”) that provides for a $400.0 million revolving credit facility (the “Revolving Credit Facility”) and three term loan facilities in the aggregate amount of $1.1 billion. The Revolving Credit Facility matures on January 22, 2030. The term loan facilities consist of a $500.0 million term loan that matures on January 3, 2028 (the “Term 1 Loan”), a $300.0 million term loan that matures January 22, 2030 (the “Term 2 Loan”) and a $300.0 million term loan that matures on January 22, 2029 (the “Term 3 Loan”). The maturity date of the Revolving Credit Facility, Term 1 Loan and Term 3 Loan may be extended for two additional six-month periods upon the payment of applicable fees and satisfaction of certain standard conditions. We have the right to increase the aggregate capacity of the Amended Credit Facility to $1.8 billion upon the satisfaction of certain standard conditions. As of June 30, 2026, we had $400.0 million of borrowing capacity under the Revolving Credit Facility.

Current wording

We are party to a Seventh Amended and Restated Credit Agreement (the “Credit Facility”) that provides for a $400.0 million revolving credit facility (the “Revolving Credit Facility”) and three term loan facilities in the aggregate amount of $1.1 billion. The Revolving Credit Facility matures on January 22, 2030. The term loan facilities consist of a $500.0 million term loan that matures on January 3, 2028 (the “Term 1 Loan”), a $300.0 million term loan that matures January 22, 2030 (the “Term 2 Loan”) and a $300.0 million term loan that matures on January 22, 2029 (the “Term 3 Loan”). The maturity date of the Revolving Credit Facility, Term 1 Loan and Term 3 Loan may be extended for two additional six-month periods upon the payment of applicable fees and satisfaction of certain standard conditions. We have the right to increase the aggregate capacity of the Credit Facility to $1.8 billion upon the satisfaction of certain standard conditions. As of September 30, 2026, we had $400.0 million of borrowing capacity under the Revolving Credit Facility.

Previous wording

As of June 30, 2026, we had $106.0 million of unrestricted cash, $39.9 million of restricted cash and no outstanding borrowings on our revolving credit facility.

Current wording

As of September 30, 2026, we had $140.0 million of unrestricted cash, $40.5 million of restricted cash and no outstanding borrowings on our Revolving Credit Facility.

Previous wording

Our net cash provided by operations was $101.5 million for the six months ended June 30, 2026. Our cash from operations generally consists of the net cash flow from hotel operations, offset by cash paid for corporate expenses, interest payments, and other working capital changes.

Current wording

Our net cash provided by operations was $174.3 million for the nine months ended September 30, 2026. Our cash from operations generally consists of the net cash flow from hotel operations, offset by cash paid for corporate expenses, interest payments, and other working capital changes.

Previous wording

Our net cash used in investing activities was $10.4 million for the six months ended June 30, 2026, which consisted of $40.3 million of capital expenditures offset by $29.9 million of net proceeds from the sale of Courtyard New York Manhattan/Fifth Avenue on May 1, 2026.

Current wording

Our net cash used in investing activities was $30.0 million for the nine months ended September 30, 2026, which consisted of $59.2 million of capital expenditures and $0.6 million of ground lease extension payments, offset by $29.9 million of net proceeds from the sale of Courtyard New York Manhattan/Fifth Avenue on May 1, 2026.

Previous wording

Our net cash used in financing activities was $48.5 million for the six months ended June 30, 2026, which consisted of $43.7 million of distributions paid to holders of common stock and units, $2.9 million paid to repurchase shares upon the vesting of restricted stock for the payment of tax withholdings obligations and $1.9 million of share repurchases.

Current wording

Our net cash used in financing activities was $67.0 million for the nine months ended September 30, 2026, which consisted of $62.2 million of distributions paid to holders of common stock and units, $3.0 million paid to repurchase shares upon the vesting of restricted stock for the payment of tax withholding obligations and $1.9 million of share repurchases.

Previous wording

We currently anticipate our significant sources of cash for the year ending December 31, 2026 will be net cash flow from hotel operations and potential dispositions. We expect our estimated uses of cash for the year ending December 31, 2026 will be debt service payments, potential acquisitions of hotel properties, capital expenditures, distributions to common stockholders, and corporate expenses.

Current wording

We currently anticipate our significant sources of cash for the year ending December 31, 2026 will be net cash flow from hotel operations and potential dispositions. We expect our estimated uses of cash for the year ending December 31, 2026 will be debt service payments, acquisitions of hotel properties, capital expenditures, distributions to holders of our common stock and common OP units, and corporate expenses.

Previous wording

The management and franchise agreements for each of our hotels provide for the establishment of separate property improvement reserves to cover, among other things, the cost of replacing and repairing furniture, fixtures and equipment at our hotels and other routine capital expenditures. Contributions to the property improvement fund are calculated as a percentage of hotel revenues. In addition, we may be required to pay for the cost of certain additional improvements that are not permitted to be funded from the property improvement fund under the applicable management or franchise agreement. As of June 30, 2026, we have set aside $39.8 million for capital projects in property improvement reserves, which are included in restricted cash on our consolidated balance sheets.

Current wording

The management and franchise agreements for each of our hotels provide for the establishment of separate property improvement reserves to cover, among other things, the cost of replacing and repairing furniture, fixtures and equipment at our hotels and other routine capital expenditures. Contributions to the property improvement reserve are calculated as a percentage of hotel revenues. In addition, we may be required to pay for the cost of certain additional improvements that are not permitted to be funded from the property improvement reserve under the applicable management or franchise agreement. As of September 30, 2026, we have set aside $40.4 million for capital projects in property improvement reserves, which are included in restricted cash on our consolidated balance sheets.

Previous wording

We have invested approximately $40.3 million on capital expenditures during the six months ended June 30, 2026. In 2026, we expect to spend between $75.0 to $85.0 million on capital expenditures. Significant projects currently planned or completed in 2026 include the following:

Current wording

We have invested $59.2 million on capital improvements during the nine months ended September 30, 2026. We currently expect to invest approximately $75.0 to $80.0 million on capital improvements at our hotels in 2026. Significant projects in 2026 include the following:

Previous wording

•Courtyard New York Manhattan/Midtown East: We completed a renovation of the hotel's guestrooms during first quarter of 2026.

Current wording

•Courtyard New York Manhattan/Midtown East: We completed a guestroom renovation during the first quarter of 2026.

Previous wording

•Henderson Park Inn: We completed a renovation of the hotel's guestrooms and bathrooms during the first quarter of 2026.

Current wording

•Henderson Park Inn: We completed a renovation of the guestrooms and bathrooms during the first quarter of 2026.

Previous wording

•Westin San Diego Bayview: We expect to commence a renovation of the hotel's entrance and lobby, including the lobby bar, during the third quarter of 2026.

Current wording

•Westin San Diego Bayview: We began a renovation of the hotel’s entrance, lobby, and lobby bar, during the third quarter of 2026 and expect to complete the project in the first quarter of 2027.

Previous wording

•Atlanta Marriott Alpharetta: We expect to commence a renovation of the hotel's guestrooms during the fourth quarter of 2026.

Current wording

•Atlanta Marriott Alpharetta: We expect to begin a guestroom renovation during the fourth quarter of 2026 and expect to complete the project in the first quarter of 2027.

Previous wording

-28- financial measures, provide a more complete understanding of factors and trends affecting our business than could be obtained absent this disclosure. We strongly encourage investors to review our financial information in its entirety and not to rely on a single financial measure.

Current wording

-29 financial measures, provide a more complete understanding of factors and trends affecting our business than could be obtained absent this disclosure. We strongly encourage investors to review our financial information in its entirety and not to rely on a single financial measure.

Previous wording

We compute FFO in accordance with standards established by Nareit, which defines FFO as net income (calculated in accordance with U.S. GAAP) excluding gains or losses from sales of properties and impairment losses, plus real estate related depreciation and amortization. We believe that the presentation of FFO provides useful information to investors regarding its operating performance because it is a measure of our operations without regard to specified non-cash items, such as real estate related depreciation and amortization and gains or losses on the sale of assets. We also use FFO as one measure in assessing our operating results.

Current wording

We compute FFO in accordance with standards established by Nareit, which defines FFO as net income (calculated in accordance with U.S. GAAP) excluding gains or losses from sales of properties and impairment losses, plus real estate related depreciation and amortization. We believe that the presentation of FFO provides useful information to investors regarding our operating performance because it is a measure of our operations without regard to specified non-cash items, such as real estate related depreciation and amortization and gains or losses on the sale of assets. We also use FFO as one measure in assessing our operating results.