SOHO

• Reviewed portfolio key operating metrics for Q2, noting RevPAR trends and impact of Hurricane Helene on Tampa hotel. • Highlighted performance of key assets: Hotel Ballast exceeded budget, DoubleTree Philadelphia Airport surpassed budget despite softness, Hyde Beach House delivered strong results. • Discussed portfolio profitability, noting EBITDA margin decline but expecting margin trends to stabilize. • Mentioned proactive management of upcoming debt maturities tied to assets in Atlanta and Hollywood, including engaging a consultant for loan extension and entering into a purchase and sale agreement for a parking garage in Atlanta.

• Projected full year 2025 total revenue in range of $185.2M to $188.2M (midpoint +2.6% Y/Y). • Hotel EBITDA projected in range of $45.3M to $45.8M (midpoint -2.6% Y/Y). • Adjusted FFO projected in range of $6.9M to $7.5M ($0.34 to $0.37 per share).

For the second quarter, the composite portfolio RevPAR decreased 5.4% compared to 2024, driven by a 3.5% decrease in occupancy and a 1.9% decrease in ADR. Stripping out Tampa, Q2 composite portfolio RevPAR decreased slightly better 5%, with a 2.3% decrease in occupancy and 2.8% decrease in ADR. YTD composite portfolio RevPAR decreased 0.5% from 2024, driven by 0.9% increase in occupancy and 1.5% decrease in rate; stripping out Tampa, it decreased 0.1%. Hotel EBITDA margin declined 2.5% Y/Y for Q2. Key assets: Hotel Ballast in Wilmington had RevPAR up 1.3% Y/Y, driven by 2.7% gain in ADR; DoubleTree Philadelphia Airport RevPAR down 5.3% Y/Y but outlook improving; Hyde Beach House had RevPAR up 12.7% Y/Y, driven by 18.5% gain in occupancy.

• Macroeconomic headwinds including economic uncertainty, softening demand, government-related travel pullback, and tariff policies. • Debt market uncertainty with upcoming debt maturities and challenges in refinancing. • Mortgage market challenges with tough debt service coverage ratios and covenants, and higher debt yields compared to pre-pandemic levels.

Q: David, I was interested in Savannah being the hardest hit hotel in the quarter. Can you talk more about Savannah?

A: Savannah had an outsized negative impact. Transient travel was off and there was government business impacted by DOGE-related activities. Group bookings were hesitant to overspend on banquet and catering.

Q: What percent of the portfolio is government?

A: It's difficult to disaggregate a firm percentage as some group bookings tied to government funding are not officially government tied.

Q: Your guidance reduction, is it due to further government-related pullback?

A: The guidance reduction reflects the most recent forecast for the entire year based on current trends.

Q: Are there other asset sales planned?

A: There are options being looked at, like the parking garage in Atlanta, and tapping into equity in hotels for refinancing.

Q: Why is the mortgage market for hotels still challenged?

A: Debt yields are still high compared to pre-pandemic, interest rates are elevated, debt service coverage ratios and covenants are tougher, and lenders are cautious.