On June 11,
2020, the Company announced that seven of its hotels are currently open and that it has planned re-opening dates for another
four hotels. Ritz-Carlton Sarasota, the Notary Hotel, Hilton La Jolla Torrey Pine, Pier House Resort, Bardessono Hotel, Hotel
Yountville and Chicago Sofitel Magnificent Mile are currently open and the Company intends to opens Park Hyatt Beaver Creek
on June 12, 2020, Ritz-Carlton St. Thomas on June 15, 2020, Ritz-Carlton Lake Tahoe on June 19, 2020 and
Seattle Marriott Waterfront on June 25, 2020. These planned re-opening dates are only estimates and are subject to change based on a variety of factors, including, among
others, room demand, local governmental restrictions and requirements, considerations regarding the health and safety of guests,
hotel employees and local communities. We can make no assurance that any of the hotels will actually re-open on the planned
date or, as the Company's hotels do re-open, what the operating performance of each hotel will be.
Additionally, the Company
announced that it has signed forbearance agreements on five mortgage loans on the Hotel Yountville, Bardessono Hotel, Ritz-Carlton
Lake Tahoe, Ritz-Carlton Sarasota, and Pier House Resort. The forbearance agreements allow the Company to defer interest on the
loans for an initial period of three months and up to six months subject to certain conditions and to utilize lender and manager
held reserve accounts, which are included in restricted cash on the Company’s balance sheet, in order to fund operating shortfalls
at the hotels.
Safe Harbor for Forward-Looking Statements
Certain statements
made in this Current Report on Form 8-K, including all exhibits attached hereto, could be considered forward-looking and subject
to certain risks and uncertainties that could cause results to differ materially from those projected. When the Company uses the
words “will,” “may,” “anticipate,” “estimate,” “should,” “could,”
“expect,” “believe,” “intend,” “potential,” or similar expressions, it intends
to identify forward-looking statements. .
These forward-looking
statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from
those anticipated including, without limitation: the impact of COVID-19 on our business and investment strategy; our ability to
open our hotels in accordance with our announced re-opening schedule; anticipated or expected purchases or sales of assets; our
projected operating results; completion of any pending transactions; our ability to obtain future financing arrangements or restructure
existing property level indebtedness; our understanding of our competition; market trends; projected capital expenditures; and
the impact of technology on our operations and business. Such forward-looking statements are based on the Company’s beliefs,
assumptions, and expectations of its future performance taking into account all information currently known to it. These beliefs,
assumptions, and expectations can change as a result of many potential events or factors, not all of which are known to the Company.
If a change occurs, the Company’s business, financial condition, liquidity, results of operations, plans, and other objectives
may vary materially from those expressed in its forward-looking statements. You should carefully consider this risk when you make
an investment decision concerning the Company’s securities. These and other risk factors are more fully discussed in the
Company’s filings with the Securities and Exchange Commission.
The forward-looking
statements included in this report are only made as of the date of this report. The Company can give no assurance that these forward-looking
statements will be attained or that any deviation will not occur. The Company is not obligated to publicly update or revise any
forward-looking statements, whether as a result of new information, future events or circumstances, changes in expectations or
otherwise.