REITs - Lodging. The Lodging Chartbook: June edition. Industry Overview

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1 US Equity Research June 16 Ryan Meliker Analyst Canaccord Genuity Inc. (US) Michael Kodesch Associate Canaccord Genuity Inc. (US) Company Rating Price Target REITs - Lodging AHP-NYSE Hold US$1.89 US$1. AHT-NYSE Hold US$4.9 US$6. APLE-NYSE Buy US$18.45 US$1. DRH-NYSE Buy US$8.98 US$1. HOT-NYSE Hold US$74.34 US$86. HPT-NYSE Hold US$5.57 US$8. HST-NYSE Hold US$15.44 US$17. HT-NYSE Hold US$17.71 US$1. INN-NYSE Buy US$11.7 US$14. LHO-NYSE Hold US$.99 US$6. MAR- Buy US$67.15 US$84. NASDAQ RLJ-NYSE Buy US$.83 US$5. SHO-NYSE Hold US$1.7 US$14. Share price as of Jun 1, 16 The Lodging Chartbook: June edition The Lodging Chartbook is a monthly report providing a comprehensive view of lodging industry fundamentals, as well as relative valuation and stock performance through a series of charts. Key takeaways in this month's report: Stock performance: CG's Lodging Stock Index was down 6.8% in May but down only.3% over the past three months. This compares to the RMZ and S&P 5, which were up.1% and up 1.5% in May, respectively. Among Lodging REITs, INN was the best performer of the month, up 3.7%, while AHT was the worst, down 1.%. REIT valuation: On consensus estimates, REITs are now trading at a.9x discount to their long-run average NTM EBITDA multiples and at a.x discount to their LRA FFO multiples. We estimate that the REITs are trading at a 1% discount to NAV. With regard to implied cap rates, the REITs are now trading 89 bps wider than their LRAs, while on implied cap rate spreads over Baa bond yields, the stocks are trading 18 bps wider than their LRAs. HPT, DRH and HST are trading at the biggest discounts to peers when comparing implied cap rate spreads over Baa bonds to historical spreads. C-corp valuation: EBITDA multiples are 1.x below long-run averages, while P/E multiples are.1x above historical levels. On EBITDA multiples, WYN is trading at the biggest historical discount relative to the sector. At month's end, the C-corps were trading at a 1.x EBITDA multiple, roughly a full turn below the 1.9x multiple posted by the REITs. Industry fundamentals: US Industry RevPAR increased 5.% in April, according to STR, and is tracking up 1% as of 5/1 in May. In 15, RevPAR was up 6.3%, while we estimate 1Q16 RevPAR was up.7%. On a rolling 1-month basis, ADR accounts for 79% of total RevPAR growth. Demand segments: On a three-month rolling basis, transient demand growth is +3.%,ahead of the average growth of.6% since the start of 14. Group demand is down.% on a three-month rolling basis, a dynamic we expect to revert back to the average growth of.8% since the start of 14, which should drive RevPAR growth to reaccelerate in Q. International: April European RevPAR growth was up 3.3% in euros but up 6.8% in US $ due to the strengthening of the euro. Asia Pacific was down.4% in US$ in April, as China RevPAR was up.7% in local currency. Investment thesis: We believe the lodging sector is a binary call. As we don t believe the US is entering a near-term recession, we are comfortable on the more bullish side of this debate. As such, while we think the entire sector is poised to move up materially in 16, we prefer names with more attractive growth profiles primarily driven by heavier exposure to select-service and suburban or secondary market properties (INN, APLE, RLJ and MAR) and those names with unique catalysts (DRH). Canaccord Genuity is the global capital markets group of Canaccord Genuity Group Inc. (CF : TSX) The recommendations and opinions expressed in this research report accurately reflect the research analyst's personal, independent and objective views about any and all the companies and securities that are the subject of this report discussed herein. For important information, please see the Important Disclosures beginning on page 4 of this document.

2 Table of Contents Page Comps sheet... 3 Stock performance... 4 Valuation multiples... 6 Implied cap rates, spreads and price per room... 7 Stock charts Ashford Hospitality Prime... 1 Ashford Hospitality Trust... 1 Apple Hospitality REIT DiamondRock Hospitality Hersha Hospitality Trust Hospitality Properties Trust Host Hotels and Resorts... 1 LaSalle Hotel Properties... 3 Marriott International... 5 RLJ Lodging Trust... 6 Starwood Hotels and Resorts... 8 Summit Hotel Properties... 9 Sunstone Hotel Investors Industry charts US operating fundamentals Demand segments International fundamentals June 16

3 Figure 1: Lodging comps table Capitalization Real Estate Valuation Net Debt Total Debt Implied TTM Total Diluted Mkt Ent. Value (w/ Pref)/ (w/ Pref)/ YE 16 Dividend Projected Implied Cap Rate $/Room Cap Rate Spread to Baa Yields NAV/sh Estimates Price/NAV Company Rating 5/31/16 Return Cap (mm) (mm) '16 EBITDA Assets Price Target Yield Total Return LRA Prem. () LRA Prem. CG Cons. Lodging C-Corps MAR BUY $ % $17,89 $1,187.x 66.5% $84 1.% 8.4% HOT HOLD $ % 1,336 13,4.8x 6.1% $86.% 19.% CHH NR $ %,557 3,56.8x 113.5% - 1.8% H NR $ % 6,4 7,47 1.x 18.1% -.% HLT NR $ %,551 31,6 3.6x 55.7% -.3% IHG NR $ % 9,14 1,53 1.4x 44.% -.6% LQ NR $ % 1,469 3,94.1x 55.7% -.% STAY NR $ %,918 5,35 3.9x 61.% - 1.3% BEL NR $ % 99 1,437.3x 38.6% -.% MHGC NR $ % x 116.4% -.% WYN NR $ % 7,68 1,68 3.6x 51.3% -.7% Lodging C-corp.5x 5.9%.9% Lodging REITs APLE BUY $ % $3,184 $4,5.9x 5.% $1 6.6% 1.8% 7.6% NA NA 18 5 NA NA $16.91 $17 8% -1.% -1.% #DIV/! DRH BUY $ % 1,8,57.9x 3.7% $1 5.6% 39.8% 8.8% 6.3% $1.9 $1-31% -1.% -1.% #DIV/! INN BUY $ % 1, 1,893 5.x 43.6% $14 4.% 3.7% 8.5% 8.6% (18) (36) $1.89 $14-9% -1.% -1.% #DIV/! RLJ BUY $ %,561 4,1 3.5x 33.5% $5 6.4% 8.5% 9.1% 8.9% $5.99 $6-1% -1.% -1.% #DIV/! AHP HOLD $1.8-9.% 397 1,84 6.x 47.% $1 3.7% 14.6% 1.% 7.5% NA NA $.8 $19-53% -1.% -1.% #DIV/! AHT HOLD $ % 585 4,61 8.9x 73.5% $6 9.5% 8.8% 9.1% 6.9% $1.3 $8-51% -1.% -1.% #DIV/! HPT HOLD $ % 3,88 7,885 5.x 4.1% $7 7.8% 13.3% 13.% 1.8% $39.7 $3-36% -1.% -1.% #DIV/! HST HOLD $ % 11,545 15,533.7x.8% $17 5.% 15.6% 8.% 6.3% $19.1 $18 -% -1.% -1.% #DIV/! HT HOLD $ % 831,51 6.9x 49.5% $1 6.3% 4.8% 8.% 7.7% $4.47 $5-8% -1.% -1.% #DIV/! LHO HOLD $ %,615 4,18 4.x 3.1% $6 7.8%.3% 8.% 7.1% $3.5 $8-4% -1.% -1.% #DIV/! SHO HOLD $ %,67 3,371.3x 5.6% $14 3.7%.% 8.1% 7.1% $14.56 $14-17% -1.% -1.% #DIV/! CHSP NR $ % 1,41,5 4.1x 4.% - 6.7% - 7.8% 9.5% (176) (1) $9-18% CLDT NR $ % 839 1,48 4.x 45.4% - 6.1% - NA NA NA - NA NA NA $5-1% -1.% -1.% #DIV/! FCH NR $ % 93, x 61.% -.4% - 8.4% 9.% (63) () NA NA PEB NR $ % 1,84 3,43 5.7x 49.% - 6.% - 7.% 7.6% (41) (9) $31-17% RHP NR $ %,5 3,915 5.x 4.% - 6.1% - 7.5% NA NA - 4 NA NA $5-1% Lodging REIT 4.4x 36.9% 6.1% 8.6% 6.6% % Lodging 3.4x 43.9% 3.5% EPS/FFO Multiples EBITDA Multiples EPS/FFO EPS/FFO Growth P/EPS/ FFO EBITDA (mm) EBIDTA Growth EV/EBITDA Company Rating NTME 15 16E 17E 15 16E 17E NTM 15 16E 17E LRA NTME 15 16E 17E 15 16E 17E NTM 15 16E 17E LRA Lodging C-Corps MAR BUY $3.75 $3.15 $3.75 $4.1 4% 19% 9% 17.6x 1.x 17.6x 16.1x 4.x $1,941 $1,78 $1,941 $,16 13% 1% 9% 1.9x 1.3x 1.9x 1.1x 11.4x HOT HOLD % -% -6% 4.x 3.5x 4.x 5.5x 5.9x % -3% -3% 11.4x 11.x 11.4x 11.8x 1.1x CHH NR % 5% 1% 18.7x.4x 19.6x 17.7x 18.9x % 7% 6% 1.5x 13.7x 1.8x 1.1x 13.x H NR % 48% 16% 3.4x 51.x 34.6x 9.7x 41.x % 11% 5% 8.6x 9.7x 8.8x 8.3x 11.1x HLT NR % 17% 17%.4x NA 1.8x 18.7x 9.3x 3,137,879 3,53 3,55 15% 6% 7% 1.1x 11.x 1.4x 9.7x 1.1x IHG NR % 1% 17% 15.8x 18.6x 17.x 14.5x 4.5x % % 8% 1.8x 13.x 13.x 1.x 11.4x LQ NR NA 4% 8%.5x NA 1.x 19.6x 9.3x % -6% % 8.3x 7.9x 8.4x 8.x 9.8x STAY NR NA -4% 14% 14.8x NA 15.7x 13.7x.x % 1% 5% 8.6x 8.8x 8.7x 8.3x 1.9x BEL NR % 36% 18% 36.1x 5.8x 38.8x 3.8x 6.1x % 1% 6% 1.7x 1.x 1.9x 1.3x 13.x MHGC NR (1.37) NA NA 1% -1.6x 14.6x -1.6x -1.6x 4.1x % -6% 4% 13.9x 13.3x 14.1x 13.6x 15.x WYN NR % 11% 1% 11.4x 13.x 11.8x 1.8x 13.4x % 6% 5% 9.x 9.7x 9.x 8.7x 9.5x Lodging C-corp 11.9% 14.% 11.1% 19.3x 14.3x.1x 18.x 5.5x 8.% 5.4% 5.4% 1.4x 11.1x 1.6x 1.x 11.x Lodging REITs APLE BUY $1.81 $1.59 $1.81 $1.91 NA 14% 14% 1.1x 11.5x 1.1x 9.6x NA $355 $31 $355 $377 NA 1% 6% 11.9x 13.1x 11.9x 11.1x NA DRH BUY % 7% 3% 8.3x 8.8x 8.3x 8.x 11.4x % 1% 3% 9.5x 9.7x 9.5x 9.3x 11.8x INN BUY % 9% 5% 8.6x 9.4x 8.6x 8.x 1.x % 1% % 11.3x 1.3x 11.3x 11.x 11.9x RLJ BUY % 1% 1% 7.3x 8.x 7.3x 7.3x 1.4x % 9% 1% 9.7x 1.6x 9.7x 9.6x 11.7x AHP HOLD % 35% 9% 5.5x 7.4x 5.4x 5.x 9.7x % 5% 5% 9.5x 11.9x 9.5x 9.x 11.5x AHT HOLD % % -1%.9x 3.6x.9x.9x 3.7x % 11% % 1.x 11.3x 1.x 9.9x 1.5x HPT HOLD % 15% 1% 6.6x 7.7x 6.7x 6.6x 8.3x % 18% 7% 9.9x 11.7x 9.9x 9.x 9.7x HST HOLD % 9% 3% 9.1x 9.9x 9.1x 8.8x 11.3x 1,477 1,49 1,477 1,473 % 5% % 1.5x 11.x 1.5x 1.5x 1.4x HT HOLD % 8% -4% 7.x 7.5x 7.x 7.3x 1.1x % % -5% 11.6x 11.6x 11.6x 1.x 1.x LHO HOLD % 9% -% 7.5x 8.x 7.5x 7.7x 1.5x % 4% 1% 1.5x 1.9x 1.5x 1.3x 1.4x SHO HOLD % -3% 8% 9.8x 9.5x 9.8x 9.x 1.x % -4% 6% 1.x 9.6x 1.x 9.4x 11.9x CHSP NR % 16% 1% 9.4x 1.9x 9.4x 9.3x 1.6x % 14% % 11.3x 1.9x 11.4x 11.3x 11.8x CLDT NR % 7% 6% 8.6x 9.5x 8.8x 8.3x 1.9x % 8% 5% 1.1x 11.1x 1.3x 9.9x 11.x FCH NR % 16% 6% 6.7x 8.x 6.9x 6.5x 8.x % 6% 1% 1.6x 11.x 1.6x 1.5x 11.9x PEB NR % 1% % 8.9x 1.1x 9.x 8.8x 15.x % 7% % 1.3x 13.1x 1.3x 1.3x 14.7x RHP NR NA 3% 5% 8.9x NA 9.1x 8.7x NA % 6% 5% 11.1x 1.x 11.3x 1.8x 1.5x Lodging REIT 15.7% 1.% 3.3% 8.x 8.x 8.x 7.8x 8.8x 9.8% 7.8%.4% 1.6x 11.4x 1.6x 1.4x 11.x Lodging 13.8% 13.1% 7.% 13.6x 11.3x 14.x 13.x 17.x 9.% 6.6% 3.9% 1.5x 11.3x 1.6x 1.x 11.1x Source: Company reports, FactSet, SNL, Canaccord Genuity estimates (for rated companies under coverage). Total return indicates potential appreciation to price target plus current dividend yield. Past performance does not predict future results. June 16 3

4 Figure : Lodging stock performance (based on close prices) Figure 3: Lodging stock total returns (based on close prices) 1 Month 3 Month YTD 1 Year 3 Year 5 Year INN.6% 8.% -.1% -1.4% 18.5% NA CLDT 1.8% 8.1% 5.9% -.4% 16.9% 3.3% DRH.3%.4% -7.4% -3.1% -6.% -.3% HPT.% 5.4% -.1% -14.6% -11.6% 4.5% HST -.7%.6%.4% -.7% -13.4% -1.4% RLJ -.8% -.3% -5.3% -3.% -11.5% NA HOT -3.1% 14.8% 14.5% -4.1% 16.% 3.1% CHSP -3.% -6.% -5.% -3.3% 5.7% 33.9% LHO -3.3% -5.1% -8.1% -36.6% -1.5% -17.4% AHP -3.3% 1.1% -5.4% -31.3% NA NA APLE -3.7% -4.1% -8.7% NA NA NA H -4.1% -.5% -.4% -.1% 11.6% 3.% RHP -4.8%.5% -5.% -11.% 8.% 5.1% WYN -5.% -7.5% -7.% -.6% 15.9% 93.6% HLT -5.8%.% -.9% -8.% NA NA MAR -5.8% -3.1% -1.5% -15.3% 57.% 85.3% SHO -6.% -6.7% -3.6% -1.1% -.% 18.4% LQ -7.% 9.4% -1.7% -5.% NA NA FCH -7.7% -1.7% -9.5% -38.5% 7.3% 6.1% HT -8.1% -1.% -18.6% -3.3% -.6% -6.4% PEB -8.8% -7.1% -1.% -41.% -3.9% 16.% STAY -8.9% -3.5% -1.3% -7.3% NA NA AHT -1.% -9.% -.3% -37.3% -35.6% -4.4% CHH -1.4% -1.4% -1.% -19.8% 14.9% 7.3% IHG -19.6% -14.6% -16.7% -.9% 3.7% 9.1% CG Lodging Index -6.8% -.3% -4.3% -.4% 8.5% 4.3% RMZ.1% 9.% 4.7% 6.% 19.% 34.6% S&P5 1.5% 8.5%.6% -.5% 8.6% 55.9% Source: FactSet. Past performance does not predict future results. 1 Month 3 Month YTD 1 Year 3 Year 5 Year INN 3.7% 9.4%.% -8.7% 34.9% NA CLDT.3% 9.8% 9.1% -17.6% 35.% 7.4% DRH.3% 1.7% -6.% -8.9% 5.% -7.% HPT.% 7.5%.1% -7.7% 8.9% 48.9% HST -.7% 1.8% 1.6% -19.% -3.3% 1.% RLJ -.8% -.8% -3.9% -8.5%.4% NA HOT -.6% 16.% 15.7% -1.7% 8.1% 48.4% CHSP -3.% -4.8% -3.8% -18.8% 1.6% 7.% LHO -3.3% -3.4% -6.5% -3.5%.6% -.3% AHP -3.3% 11.% -4.7% -9.% NA NA APLE -3.% -.6% -6.3% NA NA NA H -4.1% -.5% -.4% -.1% 11.6% 3.% RHP -4.8% 4.% -3.6% -6.% 49.1% 117.9% WYN -4.3% -6.% -5.9% -18.6% 3.3% 113.9% HLT -5.4%.7% -.3% -7.4% NA NA MAR -5.3% -.7% -.7% -14.% 63.7% 98.4% SHO -6.% -6.3% -3.3% -1.3% 15.8% 37.3% LQ -7.% 9.4% -1.7% -5.% NA NA FCH -7.7% -1.% -7.8% -36.8% 1.% 1.7% HT -8.1% -1.8% -17.5% -6.9% -11.6% -7.5% PEB -8.8% -5.9% -8.8% -38.8% 4.9% 3.8% STAY -7.7% -1.% -8.1% -3.% NA NA AHT -1.% -7.% -18.7% -3.7% -4.3% -3.1% CHH -1.4% -1.1% -9.6% -18.5%.4% 84.9% IHG -4.1% 3.3%.7% -6.1% 48.% 17.1% CG Lodging Index -4.6%.8% -1.1% -18.3% 1.5% 5.3% RMZ.1% 9.% 4.7% 6.% 19.% 34.6% S&P5 1.8% 9.1% 3.6% 1.7% 37.% 73.6% Source: FactSet. Total return indicates appreciation plus dividend. Past performance does not predict future results. The CG Lodging Index is composed of the companies included in Figure 1 June 16 4

5 Figure 4: MLV Lodging index performance in recent cycles - returns are peak to peak 5 Stock Returns Peak to Peak 9's Cycle Stock Index 's Cycle Stock Index 15 Cycle Stock Index 1 5 The current cycle is 86% of the prior peak (recorded in May 7), while both the 9s and s peaks finished 185% and 19% above the previous respective peaks, respectively. Month1 Month13 Month5 Month37 Month49 Month61 Month73 Month85 Month97 Month19 Month11 Months from Prior Peak Source: FactSet, SNL, Canaccord Genuity. Past performance does not predict future results. June 16 5

6 Figure 5: EV / EBITDA multiples on consensus estimates NTM EBITDA Multiples Premium/ Discount vs. LRA Premium/ Discount vs. Sector 5/31/16 4/3/16 Change LRA 5/31/16 4/3/16 Change 5/31/16 LRA Difference C-Corps CHH 1.x 13.3x -1.1x 1.x.x 3.1x -1.1x.x -.9x 3.x IHG 1.1x 14.9x -.8x 11.3x.8x 3.6x -.8x.1x.3x 1.8x HOT 11.9x 13.3x -1.4x 1.1x 1.8x 3.x -1.4x 1.9x -.9x.8x MAR 1.3x 1.8x -.6x 11.4x -1.x -.6x -.6x.3x.4x -.1x HLT 9.3x 9.7x -.4x 11.4x -.1x -1.7x -.4x -.7x.4x -1.1x WYN 8.8x 9.1x -.3x 13.x -4.3x -4.1x -.3x -1.x.1x -3.3x STAY 8.6x 9.x -.4x 9.5x -.9x -.4x -.4x -1.4x -1.6x.x H 8.5x 8.9x -.4x 11.4x -.9x -.5x -.4x -1.5x.4x -1.9x LQ 8.x 8.5x -.3x 1.8x -.5x -.x -.3x -1.7x -.3x -1.5x Basic 1.x 1.9x -.9x 11.x -1.x -.x -.9x REITs HT 1.6x 1.6x.x 1.1x.5x.5x.x 1.7x -1.6x 3.3x PEB 11.9x 1.6x -.7x 14.6x -.7x -.x -.7x 1.1x.9x -1.9x CHSP 11.5x 11.8x -.3x 11.8x -.x.x -.3x.7x.x.6x INN 11.4x 11.6x -.x 11.9x -.5x -.3x -.x.5x.x.4x APLE 11.3x 11.8x -.5x 1.x -.8x -.x -.5x.4x.3x.1x RHP 11.x 11.5x -.3x 1.4x -1.x -.9x -.3x 1.x 1.4x -.x SHO 1.9x 11.6x -.7x 11.8x -.8x -.x -.7x.1x.1x.x LHO 1.8x 11.x -.x 1.4x -1.6x -1.4x -.x -.1x.7x -.7x FCH 1.6x 11.x -.3x 11.9x -1.x -.9x -.3x -.x.1x -.4x HST 1.6x 1.8x -.x 1.4x -1.8x -1.6x -.x -.3x.7x -1.x AHP 1.5x 1.5x.x 11.5x -1.x -1.x.x -.4x -.3x -.1x AHT 1.4x 1.5x -.1x 1.6x -.1x -.1x -.1x -.5x -1.x.7x CLDT 1.3x 1.1x.x 11.x -.7x -.9x.x -.6x -.7x.x DRH 1.1x 1.x.1x 11.8x -1.7x -1.8x.1x -.7x.1x -.8x RLJ 1.x 1.3x -.3x 11.7x -1.6x -1.4x -.3x -.8x -.1x -.8x HPT 9.7x 9.8x -.1x 9.7x.x.x -.1x -1.x -.x.8x Basic 1.9x 11.1x -.x 11.7x -.9x -.6x -.x Source: FactSet estimates, SNL, Canaccord Genuity Figure 6: Price/ earnings/ffo multiples on consensus estimates NTM P/ E/FFO Multiples Premium/ Discount vs. LRA Premium/ Discount vs. Sector 5/31/16 4/3/16 Change LRA 5/31/16 4/3/16 Change 5/31/16 LRA Difference C-Corps H 3.4x 31.4x 1.x 39.7x -7.3x -8.3x 1.x.4x 1.x 1.1x HOT 4.x 8.4x -4.x 5.9x -1.7x.5x -4.x 14.x 7.3x 7.x LQ.5x.3x -1.8x 11.9x 8.6x 1.4x -1.8x 1.5x 1.x 9.3x HLT.4x 1.9x -1.5x 1.8x 9.7x 11.x -1.5x 1.4x.8x 9.6x CHH 18.8x.8x -.1x 18.9x -.x 1.9x -.1x 8.8x -.3x 9.x IHG 18.x 19.x -.8x.3x -.1x -1.3x -.8x 8.x -.1x 1.3x MAR 16.5x 17.8x -1.3x 3.7x -7.x -5.9x -1.3x 6.5x -3.3x 9.8x STAY 14.8x 16.4x -1.5x 11.4x 3.4x 4.9x -1.5x 4.8x -4.8x 9.6x WYN 11.4x 1.x -.6x 13.4x -.x -1.4x -.6x 1.4x -9.1x 1.5x Basic 19.7x 1.1x -1.4x 19.6x.1x 1.6x -1.4x REITs APLE 1.1x 1.7x -.5x 1.7x -.6x -.1x -.5x -.7x.5x -3.3x SHO 9.6x 1.x -.4x 1.x -.6x -.x -.4x -1.3x 1.9x -3.x CHSP 9.4x 9.7x -.3x 1.5x -3.x -.8x -.3x -1.5x 1.6x -3.1x HST 9.1x 9.3x -.3x 11.3x -.3x -.x -.3x -1.8x 1.x -3.x RHP 8.9x 9.5x -.5x 1.x -1.1x -.5x -.5x -1.9x 1.3x -3.3x PEB 8.9x 9.8x -.9x 14.4x -5.5x -4.6x -.9x -.x 1.7x -3.7x CLDT 8.6x 8.3x.3x 1.8x -.x -.5x.3x -.x.x -.4x INN 8.6x 8.5x.1x 1.1x -1.5x -1.6x.1x -.3x.4x -.6x DRH 8.x 8.1x.x 11.4x -3.x -3.3x.x -.7x.x -.7x LHO 7.7x 8.x -.3x 1.5x -.8x -.5x -.3x -3.x -.1x -3.1x RLJ 7.4x 7.6x -.3x 1.3x -.9x -.7x -.3x -3.5x -.5x -3.x FCH 6.7x 7.3x -.6x 8.x -1.3x -.7x -.6x -4.x -.8x -3.3x HT 6.7x 7.x -.4x 1.x -3.4x -3.x -.4x -4.x -1.1x -3.1x HPT 6.5x 6.6x.x 8.3x -1.7x -1.7x.x -4.3x -1.6x -.8x AHP 6.x 6.3x -.x 9.5x -3.4x -3.x -.x -4.8x -1.9x -3.x AHT 3.x 3.4x -.x 3.4x -.x.x -.x -7.7x -4.8x -.9x Basic 7.8x 8.1x -.3x 1.1x -.x -.x -.3x Source: FactSet estimates, SNL, Canaccord Genuity June 16 6

7 Figure 7: Implied cap rates Implied Cap Rates Premium/ Discount vs. LRA Premium/ Discount vs. Sector 5/31/16 4/3/16 Change (bps) LRA 5/31/16 4/3/16 Change (bps) 5/31/16 LRA Difference (bps) PEB 7.% 6.5% 75 7.% () (77) 75 (148) (57) (91) APLE 7.6% 7.3% 1 NA NA NA NA (114) NA NA CHSP 7.8% 7.7% 8 9.1% (13) (139) 8 (93) 17 () HST 8.% 7.8% % (7) (149) 77 LHO 8.% 7.8% % (69) (67) () SHO 8.1% 7.7% % (59) (67) 8 HT 8.% 7.9% % (47) (1) (37) FCH 8.4% 7.9% % (49) (9) 43 (34) 14 (138) INN 8.5% 8.6% (13) 8.6% (18) (5) (13) (3) 83 (16) DRH 8.8% 8.8% () 6.3% () 8 (155) 163 RLJ 9.1% 8.9% % AHT 9.1% 8.9% % (9) 19 AHP 1.% 1.% % NA NA HPT 13.% 13.% () 1.8% () CLDT NA NA NA NA NA NA NA NA NA NA Basic 8.7% 8.5% 7.8% Source: FactSet estimates, SNL, Canaccord Genuity estimates Figure 8: Implied cap rates vs. Moody s Baa corporate bond index Implied Cap Rate Spread vs. Baa Corporate Bonds Premium/ Discount vs. LRA Premium/ Discount vs. Sector 5/31/16 4/3/16 Change (bps) LRA 5/31/16 4/3/16 Change (bps) 5/31/16 LRA Difference (bps) PEB (78) 14 (148) 8 (156) APLE NA NA NA NA (114) NA NA CHSP (1) (136) 37 (93) 188 (8) HST (7) (4) 133 LHO (69) (133) 63 SHO (59) (35) (4) HT (47) (78) 3 FCH () 7 (34) 79 (113) INN (3) 8 (16) DRH (167) 175 RLJ (17) AHT (8) 117 AHP NA NA HPT CLDT NA NA NA NA NA NA NA NA NA NA Basic Source: FactSet estimates, SNL, Canaccord Genuity estimates Figure 9: Implied price per room valuation Implied Price per Room ($) Premium/ Discount vs. LRA ($) Premium/ Discount vs. Sector ($) 5/31/16 4/3/16 Change LRA 5/31/16 4/3/16 Change 5/31/16 LRA Difference (bps) LHO $359 $367 ($7) $35 $34 $4 ($7) $114 $8 $35 CLDT (15) PEB (163) (193) (16) CHSP (46) (54) (46) HST (5) (5) 14 () 35 DRH (7) AHP (4) 83 (8) (4) (4) 1 38 (7) HT (11) (11) 1 (4) 5 SHO 5 6 (1) (1) 5 (37) 41 RLJ () () (51) (59) 9 AHT () () (79) (91) 11 INN (87) (16) 39 FCH (59) 179 (6) 34 (59) (9) (67) (5) HPT (11) (14) 19 Basic $45 $48 ($3) $46 ($) $3 ($3) Source: FactSet estimates, SNL, Canaccord Genuity estimates 3 June 16 7

8 Figure 1: 16E RevPAR vs. NTM EBITDA multiples and regressed multiple trend line 14.x 13.5x 13.x 1.5x The relationship between RevPAR and EBITDA mutliples has disconnected, as higher growth stocks like APLE and net sellers like HT are receiving premium multiples PEB 1.x APLE 11.5x 11.x INN HOT MAR RHP HT CHSP 1.5x 1.x 9.5x HPT CLDT RLJ FCH AHT SHO HST DRH LHO AHP 9.x $75 $95 $115 $135 $155 $175 $195 $15 $35 *NOTE: Non-covered companies use consensus NTM EBITDA and the 16E RevPAR is also based on consensus estimates June 16 8

9 STOCK CHARTS June 16 9

10 Ashford Hospitality Prime (NYSE: AHP) Figure 11: Stock performance, price target, bull and bear cases Figure 1: Forward consensus price/ FFO multiple $3 14x $5 $4 1x $ $15 $1 1x 8x 6x $1 $5 $ Dec-13 Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 Apr-16 Jun-16 Aug-16 Oct-16 Dec-16 $8 4x x x FFO Multiple 11/9/13 1/31/13 1/31/14 /8/14 3/31/14 4/3/14 5/3/14 6/3/14 7/31/14 8/9/14 9/3/14 1/31/14 11/8/14 1/31/14 1/3/15 /7/15 3/31/15 4/3/15 5/9/15 6/3/15 7/31/15 8/31/15 9/3/15 1/3/15 11/3/15 1/31/15 1/9/16 /9/16 3/31/16 4/9/16 5/31/16. Past performance does not predict future results.. Past performance does not predict future results. Figure 13: Forward consensus EV/ EBITDA multiple Figure 14: Implied price per room ($) 14x 13x 1x 11x $35 $33 $31 Price per Room 1x 9x 8x 7x EBITDA Multiple $9 $7 $5 6x /8/14 3/31/14 4/3/14 5/3/14 6/3/14 7/31/14 8/9/14 9/3/14 1/31/14 11/8/14 1/31/14 1/3/15 /7/15 3/31/15 4/3/15 5/9/15 6/3/15 7/31/15 8/31/15 9/3/15 1/3/15 11/3/15 1/31/15 1/31/16 /9/16 3/31/16 4/3/16 5/31/16 $3 1Q14 3Q14 1Q15 3Q15 1Q16. Past performance does not predict future results. June 16 1

11 Ashford Hospitality Prime (continued) Figure 15: Implied cap rate Figure 16: Implied cap rate spread vs. Moody s Baa corporate bonds 11.% 1.5% 1.% 9.5% 9.% 8.5% Implied Cap Rate Spread vs. Baa Corporates Spread 8.% 7.5% 7.% 1 6.5% 6.% 1Q14 3Q14 1Q15 3Q15 1Q16 1Q14 3Q14 1Q15 3Q15 1Q16 Figure 17: Implied cap rate spread vs. universe average Figure 18: Relative spread over Baa bonds vs. universe average 17 1 Spread vs. Universe Spread 15 1 Relative Spread vs. Baa vs. Universe Spread 7 5 (3) (5) (8) 1Q14 3Q14 1Q15 3Q15 1Q16 (1) 1Q14 3Q14 1Q15 3Q15 1Q16 June 16 11

12 Ashford Hospitality Trust (NYSE: AHT) Figure 19: Stock performance, price target, bull and bear cases $16 $14 $1 $1 $8 $6 $4 $ $ Apr-1 Sep-1 Feb-11 Jul-11 Dec-11 May-1 Oct-1 Mar-13 Aug-13 Jan-14 Jun-14 Nov-14 Apr-15 Sep-15 Feb-16 Jul-16 $11 $6 $4 Dec-16 Figure : Forward consensus price/ FFO multiple x 18x 16x 14x 1x 1x 8x 6x 4x x x FFO Multiple 5/8/4 11/3/4 5/31/5 11/3/5 5/31/6 11/3/6 5/31/7 11/3/7 5/3/8 11/8/8 5/9/9 11/3/9 5/8/1 11/3/1 5/31/11 11/3/11 5/31/1 11/3/1 5/31/13 11/9/13 5/3/14 11/8/14 5/9/15 11/3/15 5/31/16. Past performance does not predict future results.. Past performance does not predict future results. Figure 1: Forward consensus EV/ EBITDA multiple Figure : Implied price per room ($) 16x 14x EBITDA Multiple $3 $5 Price per Room 1x $ 1x $15 8x $1 6x 8/31/8 1/31/8 4/3/9 8/31/9 1/31/9 5/8/1 9/3/1 1/31/11 5/31/11 9/3/11 1/31/1 5/31/1 9/8/1 1/31/13 5/31/13 9/3/13 1/31/14 5/3/14 9/3/14 1/3/15 5/9/15 9/3/15 1/31/16 5/31/16 $5 Q4 4Q4 Q5 4Q5 Q6 Q7 Q8. Past performance does not predict future results. 3 June 16 1

13 Ashford Hospitality Trust (continued) Figure 3: Implied cap rate 1% 11% 1% 9% 8% 7% 6% 5% 4% Figure 5: Implied cap rate spread vs. universe average (1) () (3) Q4 4Q4 Q5 4Q5 Q6 Q7 Q8 Implied Cap Rate Spread vs. Universe Spread Q4 4Q4 Q5 4Q5 Q6 Q7 Q8 Figure 4: Implied cap rate spread vs. Moody s Baa corporate bonds () (4) Q4 4Q4 Q5 4Q5 Q6 Q7 Q8 Figure 6: Relative spread over Baa bonds vs. universe average (1) () (3) Spread vs. Baa Corporates Spread Relative Spread vs. Baa vs. Universe Spread Q4 4Q4 Q5 4Q5 Q6 Q7 Q8 June 16 13

14 Apple Hospitality REIT (NYSE: APLE) Figure 19: Stock performance, price target, bull and bear cases Figure : Forward consensus price/ FFO multiple $3 13.x $5 $7 1.5x 1.x $ $1 11.5x 11.x $15 1.5x $1 $5 $1 1.x 9.5x 9.x 8.5x FFO Multiple $ 8.x May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 8/31/15 9/3/15 1/3/15 11/3/15 1/31/15 1/9/16 /9/16 3/31/16 4/9/16 5/31/16. Past performance does not predict future results.. Past performance does not predict future results. Figure 1: Forward consensus EV/ EBITDA multiple 13.x 1.8x 1.6x 1.4x 1.x 1.x 11.8x 11.6x 11.4x 11.x 11.x EBITDA Multiple 8/31/15 9/3/15 1/3/15 11/3/15 1/31/15 1/31/16 /9/16 3/31/16 4/3/16 5/31/16. Past performance does not predict future results. June 16 14

15 DiamondRock Hospitality Trust (NYSE: DRH) Figure 7: Stock performance, price target, bull and bear cases Figure 8: Forward consensus price/ FFO multiple $18 $16 $14 $1 $1 $8 $6 $4 $ $ Dec-9 Jun-1 Dec-1 Jun-11 Dec-11 Jun-1 Dec-1 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 $16 $1 $7 Jun-16 Dec-16 x 18x 16x 14x 1x 1x 8x 6x 4x x x FFO Multiple 1/3/5 5/31/6 1/31/6 3/3/7 8/31/7 1/31/8 6/3/8 11/8/8 4/3/9 9/3/9 /6/1 7/3/1 1/31/1 5/31/11 1/31/11 3/3/1 8/31/1 1/31/13 6/8/13 11/9/13 4/3/14 9/3/14 /7/15 7/31/15 1/31/15 5/31/16. Past performance does not predict future results.. Past performance does not predict future results. Figure 9: Forward consensus EV/ EBITDA multiple Figure 3: Implied price per room ($) x 18x 16x EBITDA Multiple $4 $35 $3 Price per Room 14x 1x 1x 8x 6x 5/31/8 9/3/8 1/31/9 5/31/9 9/3/9 /6/1 6/3/1 1/9/1 /8/11 6/3/11 1/31/11 /9/1 6/9/1 1/31/1 /8/13 6/8/13 1/31/13 /8/14 6/3/14 1/31/14 /7/15 6/3/15 1/3/15 /9/16 5/31/16 $5 $ $15 $1 $5 Q6 Q7 Q8. Past performance does not predict future results. 3 June 16 15

16 DiamondRock Hospitality Trust (continued) Figure 31: Implied cap rate Figure 3: Implied cap rate spread vs. Moody s Baa corporate bonds 1% 9% 8% Implied Cap Rate 3 1 Spread vs. Baa Corporates Spread 7% 6% (1) 5% () 4% Q6 Q7 Q8 Figure 33: Implied cap rate spread vs. universe average 1 5 (5) (1) (15) () (5) (3) Q6 Q7 Q8 Spread vs. Universe Spread (3) Q6 Q7 Q8 Figure 34: Relative spread over Baa bonds vs. universe average 5 Relative Spread vs. Baa vs. Universe Spread 15 5 (5) (15) (5) (35) Q6 Q7 Q8 June 16 16

17 Hersha Hospitality Trust (NYSE: HT) Figure 35: Stock performance, price target, bull and bear cases $4 $35 $3 $5 $ $15 $1 $5 $ Apr-1 Aug-1 Dec-1 Apr-11 Aug-11 Dec-11 Apr-1 Aug-1 Dec-1 Apr-13 Aug-13 Dec-13 Apr-14 Aug-14 Dec-14 Apr-15 Aug-15 Dec-15 Apr-16 Aug-16 $34 $1 $14 Dec-16 Figure 36: Forward consensus price/ FFO multiple 18x 16x 14x 1x 1x 8x 6x 4x x x FFO Multiple /8/5 7/9/5 1/3/5 5/31/6 1/31/6 3/3/7 8/31/7 1/31/8 6/3/8 11/8/8 4/3/9 9/3/9 /6/1 7/3/1 1/31/1 5/31/11 1/31/11 3/3/1 8/31/1 1/31/13 6/8/13 11/9/13 4/3/14 9/3/14 /7/15 7/31/15 1/31/15 5/31/16. Past performance does not predict future results.. Past performance does not predict future results. Figure 37: Forward consensus EV/ EBITDA multiple Figure 38: Implied price per room ($) 16x 14x 1x 1x 8x 6x 4x x x EBITDA Multiple 9/3/7 1/31/8 5/31/8 9/3/8 1/31/9 5/31/9 9/3/9 /6/1 6/3/1 1/9/1 /8/11 6/3/11 1/31/11 /9/1 6/9/1 1/31/1 /8/13 6/8/13 1/31/13 /8/14 6/3/14 1/31/14 /7/15 6/3/15 1/3/15 /9/16 5/31/16 $4 $35 $3 $5 $ $15 $1 $5 $ Q6 Q7 Price per Room Q8. Past performance does not predict future results. June 16 17

18 Hersha Hospitality Trust (continued) Figure 39: Implied cap rate 11% 1% 9% 8% Implied Cap Rate Figure 4: Implied cap rate spread vs. Moody s Baa corporate bonds Spread vs. Baa Corporates Spread 7% 1 6% 5% 4% Q6 Q7 Q8 (1) () Q6 Q7 Q8 Figure 41: Implied cap rate spread vs. universe average (5) (1) (15) () Q6 Q7 Q8 Spread vs. Universe Spread Figure 4: Relative spread over Baa bonds vs. universe average 1 (1) () (3) Q6 Q7 Q8 Relative Spread vs. Baa vs. Universe Spread June 16 18

19 Hospitality Properties Trust (NYSE: HPT) Figure 7: Stock performance, price target, bull and bear cases $35 $3 $5 $ $15 $1 $5 $ Apr-1 Aug-1 Dec-1 Apr-11 Aug-11 Dec-11 Apr-1 Aug-1 Dec-1 Apr-13 Aug-13 Dec-13 Apr-14 Aug-14 Dec-14 Apr-15 Aug-15 Dec-15 Apr-16 Aug-16 $33 $8 $ Dec-16 Figure 71: Forward consensus price/ FFO multiple 16x 14x 1x 1x 8x 6x 4x x x FFO Multiple 11/3/1998 5/8/ /3/1999 5/31/ 11/3/ 5/31/1 11/3/1 5/31/ 11/9/ 5/3/3 11/8/3 5/8/4 11/3/4 5/31/5 11/3/5 5/31/6 11/3/6 5/31/7 11/3/7 5/3/8 11/8/8 5/9/9 11/3/9 5/8/1 11/3/1 5/31/11 11/3/11 5/31/1 11/3/1 5/31/13 11/9/13 5/3/14 11/8/14 5/9/15 11/3/15 5/31/16. Past performance does not predict future results.. Past performance does not predict future results. Figure 7: Forward consensus EV/ EBITDA multiple Figure 73: Implied price per room ($) 1x 11x 1x 9x 8x 7x 6x 5x 4x 9/3/8 1/31/9 5/31/9 9/3/9 /6/1 6/3/1 1/9/1 /8/11 6/3/11 1/31/11 /9/1 6/9/1 1/31/1 EBITDA Multiple /8/13 6/8/13 1/31/13 /8/14 6/3/14 1/31/14 /7/15 6/3/15 1/3/15 /9/16 5/31/16 $17 $15 $13 $11 $9 $7 $5 Price per Room 4Q1 Q 4Q Q3 4Q3 Q4 4Q4 Q5 4Q5 Q6 Q7 Q8. Past performance does not predict future results. 3 June 16 19

20 Hospitality Properties Trust (continued) Figure 74: Implied cap rate Figure 75: Implied cap rate spread vs. Moody s Baa corporate bonds % 18% 16% 14% Implied Cap Rate 1, 1, 8 Spread vs. Baa Corporates Spread 1% 6 1% 8% 6% 4 4% 4Q1 Q 4Q Q3 4Q3 Q4 4Q4 Q5 4Q5 Q6 Q7 Q8 Figure 76: Implied cap rate spread vs. universe average 1, 1, () (4) Spread vs. Universe Spread 4Q1 Q 4Q Q3 4Q3 Q4 4Q4 Q5 4Q5 Q6 Q7 Q8 4Q1 Q 4Q Q3 4Q3 Q4 4Q4 Q5 4Q5 Q6 Q7 Q8 Figure 77: Relative spread over Baa bonds vs. universe average 1, Relative Spread vs. Baa vs. Universe Spread 4Q1 Q 4Q Q3 4Q3 Q4 4Q4 Q5 4Q5 Q6 Q7 Q8 June 16

21 Host Hotels and Resorts (NYSE: HST) Figure 78: Stock performance, price target, bull and bear cases $3 $5 $ $15 $1 $5 Apr-1 Aug-1 Dec-1 Apr-11 Aug-11 Dec-11 Apr-1 Aug-1 Dec-1 Apr-13 Aug-13 Dec-13 Apr-14 Aug-14 Dec-14 Apr-15 Aug-15 Dec-15 Apr-16 Aug-16 $6 $17 $1 Dec-16 Figure 79: Forward consensus price/ FFO multiple 3x 5x x 15x 1x 5x x FFO Multiple 5/9/1998 /6/ /3/1999 8/31/ 5/31/1 /8/ 11/9/ 8/9/3 5/8/4 /8/5 11/3/5 8/31/6 5/31/7 /9/8 11/8/8 8/31/9 5/8/1 /8/11 11/3/11 8/31/1 5/31/13 /8/14 11/8/14 8/31/15 5/31/16. Past performance does not predict future results.. Past performance does not predict future results. Figure 8: Forward consensus EV/ EBITDA multiple Figure 81: Implied price per room ($) x 18x 16x 14x EBITDA Multiple $4 $35 $3 Price per Room 1x $5 1x 8x 6x $ $15 5/31/6 1/31/6 3/31/7 8/31/7 1/31/8 6/3/8 11/3/8 4/3/9 9/3/9 3/31/1 8/31/1 1/31/11 6/3/11 11/3/11 4/3/1 9/8/1 /8/13 7/31/13 1/31/13 5/3/14 1/31/14 3/31/15 8/31/15 1/31/16 5/31/16 $1 1Q3 3Q3 1Q4 3Q4 1Q5 3Q5 1Q6 3Q6 1Q7 3Q7 1Q8 3Q8. Past performance does not predict future results. June 16 1

22 Host Hotels and Resorts (continued) Figure 8: Implied cap rate 9.% 8.5% 8.% 7.5% 7.% 6.5% 6.% 5.5% 5.% 4.5% 4.% Figure 84: Implied cap rate spread vs. universe average (5) (1) (15) () (5) (3) (35) 3Q1 1Q 3Q 1Q3 3Q3 1Q4 3Q4 1Q5 3Q5 1Q6 3Q6 1Q7 3Q7 1Q8 3Q8 Implied Cap Rate Spread vs. Universe Spread 3Q1 1Q 3Q 1Q3 3Q3 1Q4 3Q4 1Q5 3Q5 1Q6 3Q6 1Q7 3Q7 1Q8 3Q8 Figure 83: Implied cap rate spread vs. Moody s Baa corporate bonds (1) () (3) Spread vs. Baa Corporates Spread 3Q1 1Q 3Q 1Q3 3Q3 1Q4 3Q4 1Q5 3Q5 1Q6 3Q6 1Q7 3Q7 1Q8 3Q8 Figure 85: Relative spread over Baa bonds vs. universe average 1 5 (5) (1) (15) () (5) (3) 3Q1 1Q 3Q 1Q3 3Q3 1Q4 3Q4 1Q5 3Q5 1Q6 3Q6 1Q7 3Q7 1Q8 3Q8 Relative Spread vs. Baa vs. Universe Spread June 16

23 LaSalle Hotel Properties (NYSE: LHO) Figure 86: Stock performance, price target, bull and bear cases Figure 87: Forward consensus price/ FFO multiple $45 $4 $4 $35 $3 $6 $5 $ $17 $15 $1 $5 $ Apr-1 Aug-1 Dec-1 Apr-11 Aug-11 Dec-11 Apr-1 Aug-1 Dec-1 Apr-13 Aug-13 Dec-13 Apr-14 Aug-14 Dec-14 Apr-15 Aug-15 Dec-15 Apr-16 Aug-16 Dec-16 5x x 15x 1x 5x x 8/31/1998 8/31/1999 8/31/ 8/31/1 FFO Multiple 8/3/ 8/9/3 8/31/4 8/31/5 8/31/6 8/31/7 8/9/8 8/31/9 8/31/1 8/31/11 8/31/1 8/3/13 8/9/14 8/31/15. Past performance does not predict future results.. Past performance does not predict future results. Figure 88: Forward consensus EV/ EBITDA multiple Figure 89: Implied price per room ($) 1x 19x 17x 15x 13x 11x 9x 7x 5x 5/31/6 1/31/6 3/31/7 8/31/7 1/31/8 6/3/8 11/3/8 4/3/9 9/3/9 3/31/1 8/31/1 1/31/11 6/3/11 11/3/11 4/3/1 9/8/1 /8/13 EBITDA Multiple 7/31/13 1/31/13 5/3/14 1/31/14 3/31/15 8/31/15 1/31/16 5/31/16 $55 $5 $45 $4 $35 $3 $5 $ $15 $1 $5 Price per Room Q6 Q7 Q8. Past performance does not predict future results. 3 June 16 3

24 LaSalle Hotel Properties (continued) Figure 9: Implied cap rate 1% 9% 8% 7% 6% 5% 4% Figure 9: Implied cap rate spread vs. universe average (5) (1) (15) () Q6 Q6 Q7 Q7 Q8 Q8 Implied Cap Rate Spread vs. Universe Spread Figure 91: Implied cap rate spread vs. Moody s Baa corporate bonds (1) () (3) Q6 Q7 Q8 Figure 93: Relative spread over Baa bonds vs. universe average (5) (1) (15) () Q6 Q7 Q8 Spread vs. Baa Corporates Spread Relative Spread vs. Baa vs. Universe Spread June 16 4

25 Marriott International (NYSE: MAR) Figure 94: Stock performance, price target, bull and bear cases $13 Figure 95: Forward consensus price/ EPS multiple 39x $11 $9 $19 $84 34x 9x 4x $7 $51 $5 $3 $1 Apr-1 Aug-1 Dec-1 Apr-11 Aug-11 Dec-11 Apr-1 Aug-1 Dec-1 Apr-13 Aug-13 Dec-13 Apr-14 Aug-14 Dec-14 Apr-15 Aug-15 Dec-15 Apr-16 Aug-16 Dec-16. Past performance does not predict future results. Figure 96: Forward consensus EV/ EBITDA multiple 19x 14x 9x 4x 5/8/4 11/3/4 5/31/5 11/3/5 5/31/6 11/3/6 5/31/7 11/3/7 5/3/8 11/8/8 5/9/9 11/3/9 5/8/1 11/3/1 5/31/11 11/3/11 5/31/1 11/3/1 5/31/13 11/9/13 5/3/14 11/8/14 5/9/15 11/3/15 5/31/16. Past performance does not predict future results. EPS Multiple 18x 16x 14x 1x 1x 8x 6x 4x EBITDA Multiple 7/31/5 1/31/5 5/31/6 1/31/6 3/31/7 8/31/7 1/31/8 6/3/8 11/3/8 4/3/9 9/3/9 3/31/1 8/31/1 1/31/11 6/3/11 11/3/11 4/3/1 9/8/1 /8/13 7/31/13 1/31/13 5/3/14 1/31/14 3/31/15 8/31/15 1/31/16 5/31/16. Past performance does not predict future results. 3 June 16 5

26 RLJ Lodging Trust (NYSE: RLJ) Figure 43: Stock performance, price target, bull and bear cases Figure 44: Forward consensus price/ FFO multiple $4 $35 $36 13x 1x $3 $5 $ $15 $1 $5 $ Aug-11 Dec-11 Apr-1 Aug-1 Dec-1 Apr-13 Aug-13 Dec-13 Apr-14 Aug-14 Dec-14 Apr-15 Aug-15 Dec-15 Apr-16 $5 $16 Aug-16 Dec-16 11x 1x 9x 8x 7x 6x 7/9/11 9/3/11 11/3/11 1/31/1 3/3/1 5/31/1 7/31/1 9/8/1 11/3/1 FFO Multiple 1/31/13 3/8/13 5/31/13 7/31/13 9/3/13 11/9/13 1/31/14 3/31/14 5/3/14 7/31/14 9/3/14 11/8/14 1/3/15 3/31/15 5/9/15 7/31/15 9/3/15 11/3/15 1/9/16 3/31/16 5/31/16. Past performance does not predict future results.. Past performance does not predict future results. Figure 45: Forward consensus EV/ EBITDA multiple Figure 46: Implied price per room ($) 15x 14x 13x $3 $5 Price per Room 1x 11x $ 1x 9x 8x 7x EBITDA Multiple $15 $1 /9/1 4/3/1 6/9/1 8/31/1 1/31/1 1/31/1 /8/13 4/3/13 6/8/13 8/3/13 1/31/13 1/31/13 /8/14 4/3/14 6/3/14 8/9/14 1/31/14 1/31/14 /7/15 4/3/15 6/3/15 8/31/15 1/3/15 1/31/15 /9/16 4/3/16 5/31/16 $5 3Q11 1Q1 3Q1 1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16. Past performance does not predict future results. June 16 6

27 RLJ Lodging Trust (continued) Figure 47: Implied cap rate Figure 48: Implied cap rate spread vs. Moody s Baa corporate bonds 1% 11% 1% 9% 8% Implied Cap Rate % 6% 5% 4% 3Q11 1Q1 3Q1 1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q Q11 1Q1 3Q1 Spread vs. Baa Corporates Spread 1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16 Figure 49: Implied cap rate spread vs. universe average Spread vs. Universe Spread Figure 5: Relative spread over Baa bonds vs. universe average Relative Spread vs. Baa vs. Universe Spread (5) 3Q11 1Q1 3Q1 1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16 (5) 3Q11 1Q1 3Q1 1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16 June 16 7

28 Starwood Hotels & Resorts (NYSE: HOT) Figure 51: Stock performance, price target, bull and bear cases Figure 5: Forward consensus price/ EPS multiple $1 $9 $8 $7 $6 $5 $4 $3 $ $1 Apr-1 Sep-1 Feb-11 Jul-11 Dec-11 May-1 Oct-1 Mar-13 Aug-13 Jan-14 Jun-14 Nov-14 Apr-15 Sep-15 Feb-16 Jul-16 $87 $86 $75 Dec-16 74x 64x 54x 44x 34x 4x 14x 4x EPS Multiple 9/3/5 /8/6 7/31/6 1/9/6 5/31/7 1/31/7 3/31/8 8/9/8 1/3/9 6/3/9 11/3/9 4/3/1 9/3/1 /8/11 7/9/11 1/3/11 5/31/1 1/31/1 3/8/13 8/3/13 1/31/14 6/3/14 11/8/14 4/3/15 9/3/15 /9/16. Past performance does not predict future results. Figure 53: Forward consensus EV/ EBITDA multiple. Past performance does not predict future results. 16x 15x 14x 13x 1x 11x 1x 9x 8x 7x 6x EBITDA Multiple 7/31/5 1/31/5 5/31/6 1/31/6 3/31/7 8/31/7 1/31/8 6/3/8 11/3/8 4/3/9 9/3/9 3/31/1 8/31/1 1/31/11 6/3/11 11/3/11 4/3/1 9/8/1 /8/13 7/31/13 1/31/13 5/3/14 1/31/14 3/31/15 8/31/15 1/31/16 5/31/16. Past performance does not predict future results. 3 June 16 8

29 Summit Hotel Properties (NYSE: INN) Figure 6: Stock performance, price target, bull and bear cases Figure 63: Forward consensus price/ FFO multiple $ $19 13x $18 $16 $14 $1 $1 $8 $6 $4 $ $ Apr-11 Aug-11 Dec-11 Apr-1 Aug-1 Dec-1 Apr-13 Aug-13 Dec-13 Apr-14 Aug-14 Dec-14 Apr-15 Aug-15 Dec-15 Apr-16 $14 $9 Aug-16 Dec-16 1x 11x 1x 9x 8x 7x 6x 5x FFO Multiple 3/31/11 5/31/11 7/9/11 9/3/11 11/3/11 1/31/1 3/3/1 5/31/1 7/31/1 9/8/1 11/3/1 1/31/13 3/8/13 5/31/13 7/31/13 9/3/13 11/9/13 1/31/14 3/31/14 5/3/14 7/31/14 9/3/14 11/8/14 1/3/15 3/31/15 5/9/15 7/31/15 9/3/15 11/3/15 1/9/16 3/31/16 5/31/16. Past performance does not predict future results.. Past performance does not predict future results. Figure 64: Forward consensus EV/ EBITDA multiple Figure 65: Implied price per room ($) 14x 13x 1x 11x $19 $17 $15 $13 $11 Price per Room 1x 9x 8x 1/31/11 1/3/11 /9/1 4/3/1 6/9/1 8/31/1 1/31/1 1/31/1 /8/13 4/3/13 6/8/13 8/3/13 1/31/13 1/31/13 /8/14 4/3/14 6/3/14 8/9/14 1/31/14 1/31/14 EBITDA Multiple /7/15 4/3/15 6/3/15 8/31/15 1/3/15 1/31/15 /9/16 4/3/16 5/31/16 $9 $7 $5 1Q11 3Q11 1Q1 3Q1 1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16. Past performance does not predict future results. June 16 9

30 Summit Hotel Properties (continued) Figure 66: Implied cap rate 11% 1% 9% 8% 7% 6% 5% 4% Figure 68: Implied cap rate spread vs. universe average (5) (1) (15) 1Q11 3Q11 1Q1 3Q1 1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16 Implied Cap Rate Spread vs. Universe Spread 1Q11 3Q11 1Q1 3Q1 1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16 Figure 67: Implied cap rate spread vs. Moody s Baa corporate bonds Q11 3Q11 1Q1 3Q1 1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16 Figure 69: Relative spread over Baa bonds vs. universe average (5) Spread vs. Baa Corporates Spread Relative Spread vs. Baa vs. Universe Spread 1Q11 3Q11 1Q1 3Q1 1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16 June 16 3

31 Sunstone Hotel Investors (NYSE: SHO) Figure 97: Stock performance, price target, bull and bear cases Figure 98: Forward consensus price/ FFO multiple $5 $ $15 $1 $1 $14 $1 3x 5x x 15x 1x FFO Multiple $5 $ Apr-1 Aug-1 Dec-1 Apr-11 Aug-11 Dec-11 Apr-1 Aug-1 Dec-1 Apr-13 Aug-13 Dec-13 Apr-14 Aug-14 Dec-14 Apr-15 Aug-15 Dec-15 Apr-16 Aug-16 Dec-16 5x x /8/5 7/9/5 1/3/5 5/31/6 1/31/6 3/3/7 8/31/7 1/31/8 6/3/8 11/8/8 4/3/9 9/3/9 /6/1 7/3/1 1/31/1 5/31/11 1/31/11 3/3/1 8/31/1 1/31/13 6/8/13 11/9/13 4/3/14 9/3/14 /7/15 7/31/15 1/31/15 5/31/16. Past performance does not predict future results.. Past performance does not predict future results. Figure 99: Forward consensus EV/ EBITDA multiple Figure 1: Implied price per room ($) x 18x 16x 14x 1x 1x 8x 5/31/8 9/3/8 1/31/9 5/31/9 9/3/9 /6/1 6/3/1 1/9/1 /8/11. Past performance does not predict future results. 6/3/11 1/31/11 /9/1 6/9/1 1/31/1 /8/13 EBITDA Multiple 6/8/13 1/31/13 /8/14 6/3/14 1/31/14 /7/15 6/3/15 1/3/15 /9/16 5/31/ (1) () Q7 Q8 Spread vs. Baa Corporates Spread June 16 31

32 Sunstone Hotel Investors (continued) Figure 11: Implied cap rate 11% 1% 9% 8% 7% 6% 5% 4% Figure 13: Implied cap rate spread vs. universe average (1) () Q7 Q7 Q8 Q8 Implied Cap Rate Spread vs. Universe Spread Figure 1: Implied cap rate spread vs. Moody s Baa corporate bonds (1) () Q7 Q8 Figure 14: Relative spread over Baa bonds vs. universe average (1) () Q7 Q8 Spread vs. Baa Corporates Spread Relative Spread vs. Baa vs. Universe Spread June 16 3

33 INDUSTRY FUNDAMENTALS June 16 33

34 Figure 15: US occupancy, ADR, and RevPAR growth 15% 1% 5% % -5% -1% -15% -% -5% Figure 17: Chainscale: distance above prior peak Occupancy Jan-7 Apr-7 Jul-7 Oct-7 Jan-8 Apr-8 Jul-8 Oct-8 Jan-9 Apr-9 Jul-9 Oct-9 Jan-1 Apr-1 Jul-1 Oct-1 Jan-11 Apr-11 Jul-11 Oct-11 Jan-1 Apr-1 Jul-1 Oct-1 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 ADR RevPAR Chainscale Occupancy ADR RevPAR Upscale 3.4% 1.7% 17.8% Upper Midscale 1.% 11.3% 17.% US Industry 1.8% 11.8% 16.9% Luxury 3.9% 6.8% 1.9% Upper Upscale.8% 8.% 1.8% Economy.3% 8.5% 11.% Midscale -.% 5.1% 8.8% Figure 16: Top 5 markets: distance above prior peak Market Occupancy ADR RevPAR San Francisco/San Mateo, CA 8.3% 31.5% 38.3% Nashville, TN 7.6% 5.5% 36.1% Oahu Island, HI.1%.1% 3.% Los Angeles-Long Beach, CA 5.5% 1.8% 9.% Boston, MA 6.9% 17.4% 5.8% Denver, CO 8.6% 13.8% 5.4% Anaheim-Santa Ana, CA 4.1% 15.4% 3.5% Tampa-St Petersburg, FL 5.% 9.% 3.3% Miami-Hialeah, FL 4.8% 16.9%.% Seattle, WA 4.% 14.% 1.9% New Orleans, LA 3.7% 18.% 1.9% Dallas, TX 7.8% 6.5% 1.6% St Louis, MO-IL 4.7% 1.3% 1.4% Detroit, MI 7.% 8.6%.3% Atlanta, GA 3.1% 8.5% 18.5% US Industry Overall 1.8% 11.8% 16.9% Orlando, FL 5.8% 6.3% 16.6% Minneapolis-St Paul, MN-WI 1.1% 9.1% 15.% San Diego, CA.7% 6.% 1.8% Chicago, IL 1.6% 5.8% 1.4% Houston, TX -.9% 8.% 7.1% Philadelphia, PA-NJ -1.6% 3.8% 5.4% Norfolk-Virginia Beach, VA -.9% 5.9%.5% Washington, DC-MD-VA.% -4.5%.1% Phoenix, AZ -.1% -4.3% -1.4% New York, NY 1.3% -1.5% -8.% Figure 18: Submarkets: distance above prior peak Market Type Occupancy ADR RevPAR Urban 4.3% 11.1% 17.7% Small Town / Metro -.4% 15.6% 17.% US Industry 1.8% 11.8% 16.9% Suburban.% 1.% 16.7% Highway -1.1% 14.% 15.8% Resort 1.6% 11.4% 15.6% Airport 3.8% 7.5% 14.% June 16 34

35 Figure 19: Seasonally adjusted nominal US RevPAR Figure 11: US RevPAR growth $9 RevPAR T3M, SA 15% RevPAR Growth, T3M $8 1% 5% $7 % $6-5% $5-1% -15% $4 -% $3-5% Mar-87 Mar-89 Mar-91 Mar-93 Mar-95 Mar-97 Mar-99 Mar-1 Mar-3 Mar-5 Mar-7 Mar-9 Mar-11 Mar-13 Mar-15 Mar-88 Mar-9 Mar-9 Mar-94 Mar-96 Mar-98 Mar- Mar- Mar-4 Mar-6 Mar-8 Mar-1 Mar-1 Mar-14 Mar-16 Figure 111: Seasonally adjusted real US RevPAR Figure 11: Seasonally adjusted US occupancy $36 Real RevPAR T3M, SA 7% Occupancy T3M, SA $34 68% $3 $3 66% 64% 6% $8 $6 6% 58% $4 56% $ 54% 5% $ Mar-87 Mar-89 Mar-91 Mar-93 Mar-95 Mar-97 Mar-99 Mar-1 Mar-3 Mar-5 Mar-7 Mar-9 Mar-11 Mar-13 Mar-15 5% Mar-87 Mar-88 Mar-89 Mar-9 Mar-91 Mar-9 Mar-93 Mar-94 Mar-95 Mar-96 Mar-97 Mar-98 Mar-99 Mar- Mar-1 Mar- Mar-3 Mar-4 Mar-5 Mar-6 Mar-7 Mar-8 Mar-9 Mar-1 Mar-11 Mar-1 Mar-13 Mar-14 Mar-15 Mar-16 June 16 35

36 Figure 113: US occupancy growth Figure 114: Seasonally adjusted real US ADR 1% Occupancy Growth, T3M $54 Real ADR T3M, SA 5% $5 $5 % $48-5% $46 $44-1% $4-15% $4 Mar-88 Mar-9 Mar-9 Mar-94 Mar-96 Mar-98 Mar- Mar- Mar-4 Mar-6 Mar-8 Mar-1 Mar-1 Mar-14 Mar-16 Mar-87 Mar-89 Mar-91 Mar-93 Mar-95 Mar-97 Mar-99 Mar-1 Mar-3 Mar-5 Mar-7 Mar-9 Mar-11 Mar-13 Mar-15 Figure 115: Seasonally adjusted nominal US ADR Figure 116: US ADR growth $14 $13 ADR T3M, SA 1% 8% ADR Growth, T3M $1 $11 6% 4% % $1 % $9 -% $8-4% $7 $6-6% -8% -1% $5 Mar-87 Mar-89 Mar-91 Mar-93 Mar-95 Mar-97 Mar-99 Mar-1 Mar-3 Mar-5 Mar-7 Mar-9 Mar-11 Mar-13 Mar-15-1% Mar-88 Mar-9 Mar-9 Mar-94 Mar-96 Mar-98 Mar- Mar- Mar-4 Mar-6 Mar-8 Mar-1 Mar-1 Mar-14 Mar-16 June 16 36

37 Figure 117: Demand segment indexed volumes Figure 118: Demand segment indexed revenues 17 Indexed Segment Volumes, SA 1 Indexed Segment Revenues, SA 15 Group Leisure 19 Group 13 Corporate Transient Corporate Transient Leisure Apr-6 Apr-7 Apr-8 Apr-9 Apr-1 Apr-11 Apr-1 Apr-13 Apr-14 Apr-15 Apr-16 7 Apr-6 Apr-7 Apr-8 Apr-9 Apr-1 Apr-11 Apr-1 Apr-13 Apr-14 Apr-15 Apr-16 Figure 119: Demand segment indexed real rates Figure 1: Transient demand growth on trailing 3-month rolling average not slowing yet 11 Indexed Segment Real Rates, SA 15.% Group Leisure Corporate Transient 1.% 5.% 9 85.% 8-5.% 75 Apr-6 Apr-7 Apr-8 Apr-9 Apr-1 Apr-11 Apr-1 Apr-13 Apr-14 Apr-15 Apr-16-1.% Oct-6 Feb-7 Jun-7 Oct-7 Feb-8 Jun-8 Oct-8 Feb-9 Jun-9 Oct-9 Feb-1 Jun-1 Oct-1 Feb-11 Jun-11 Oct-11 Feb-1 Jun-1 Oct-1 Feb-13 Jun-13 Oct-13 Feb-14 Jun-14 Oct-14 Feb-15 Jun-15 Oct-15 Feb-16 June 16 37

38 Figure 11: Demand segment volume growth levels Figure 1: Demand segment revenue growth levels % Segment Volume Growth, SA 4% Segment Revenue Growth, SA 15% 1% 5% 3% % Group Leisure Corporate Transient % 1% -5% % -1% -15% Group Leisure -1% -% Corporate Transient -% -5% -3% Apr-7 Apr-8 Apr-9 Apr-1 Apr-11 Apr-1 Apr-13 Apr-14 Apr-15 Apr-16 Apr-7 Apr-8 Apr-9 Apr-1 Apr-11 Apr-1 Apr-13 Apr-14 Apr-15 Apr-16 Figure 13: Demand segment real rate growth levels Figure 14: Demand segment seasonality 5% % 15% Segment Rate Growth, Real, SA 15% 14% 13% Group Leisure Corporate Transient Demand Segment Seasonality 1% 1% 5% 11% % -5% -1% -15% -% -5% Apr-7 Apr-8 Apr-9 Apr-1 Apr-11 Apr-1 Group Leisure Corporate Transient Apr-13 Apr-14 Apr-15 Apr-16 1% 9% 8% 7% 6% 5% January February March April May ` June July August September October November December 3 June 16 38

39 International Lodging Fundamentals Figure 15: TTM Europe operating fundamentals 3% % 1% % -1% -% -3% -4% Figure 17: TTM Asia Pacific operating fundamentals 4% 3% % 1% % -1% -% -3% -4% Apr- Apr- Dec- Dec- Aug-3 Aug-3 Apr-4 Apr-4 Occupancy ADR RevPAR Dec-4 Dec-4 Aug-5 Aug-5 Apr-6 Apr-6 Dec-6 Aug-7 Apr-8 Occupancy ADR RevPAR Dec-6 Aug-7 Apr-8 Dec-8 Dec-8 Aug-9 Aug-9 Apr-1 Apr-1 Dec-1 Dec-1 Aug-11 Aug-11 Apr-1 Apr-1 Dec-1 Dec-1 Aug-13 Aug-13 Apr-14 Apr-14 Dec-14 Dec-14 Aug-15 Aug-15 Apr-16 Apr-16 Figure 16: TTM Middle East/ Africa operating fundamentals 6% 5% 4% 3% % 1% % -1% -% -3% Apr- Dec- Aug-3 Apr-4 Dec-4 Aug-5 Apr-6 Dec-6 Aug-7 Apr-8 Figure 18: TTM Americas operating fundamentals 15% 1% 5% % -5% -1% -15% -% -5% Apr- Dec- Aug-3 Apr-4 Occupancy ADR RevPAR Dec-4 Aug-5 Apr-6 Dec-6 Aug-7 Apr-8 Dec-8 Dec-8 Aug-9 Aug-9 Apr-1 Apr-1 Dec-1 Dec-1 Aug-11 Aug-11 Apr-1 Apr-1 Dec-1 Dec-1 Occupancy ADR RevPAR Aug-13 Aug-13 Apr-14 Apr-14 Dec-14 Dec-14 Aug-15 Aug-15 Apr-16 Apr-16 June 16 39

40 International Lodging Fundamentals (continued) Figure 19: TTM regional occupancy levels Figure 13: TTM regional RevPARs (in $USD) 75% 7% 65% 6% 55% Europe MEA 5% Asia Pacific Americas Mar- Nov- Jul-3 Mar-4 Nov-4 Jul-5 Mar-6 Nov-6 Jul-7 Mar-8 Nov-8 Jul-9 Mar-1 Nov-1 Jul-11 Mar-1 Nov-1 Jul-13 Mar-14 Nov-14 Jul-15 Mar-16 Figure 131: TTM regional average daily rates (in $USD) $14 $1 $1 $8 $6 $4 Europe MEA Asia Pacific Americas $ Apr- Dec- Aug-3 Apr-4 Dec-4 Aug-5 Apr-6 Dec-6 Aug-7 Apr-8 Dec-8 Aug-9 Apr-1 Dec-1 Aug-11 Apr-1 Dec-1 Aug-13 Apr-14 Dec-14 Aug-15 Apr-16 $18 $16 $14 $1 $1 $8 Europe MEA Asia Pacific Americas $6 Mar- Nov- Jul-3 Mar-4 Nov-4 Jul-5 Mar-6 Nov-6 Jul-7 Mar-8 Nov-8 Jul-9 Mar-1 Nov-1 Jul-11 Mar-1 Nov-1 Jul-13 Mar-14 Nov-14 Jul-15 Mar-16 June 16 4

41 A note on price targets Our price targets are based on our NAV estimates, which are driven by our cap rate calculations. These price target valuations are supported by DCF analyses in which we risk-adjust our assumptions on cost of equity and terminal growth rates. When setting price targets, we also conduct a sensitivity analysis, adjusting our assumptions for factors such as RevPar growth, flow-though and net acquisitions. From that analysis, we also present potential stock prices in bear and bull cases. Our price targets and the recommendations they underpin, however, are based on our base-case analyses. Please see our disclosures for further details on our price target valuations and risks. Further details on our bear and bull case scenarios can be found in our research notes, available on our Canaccord Genuity website or by request. Charts and tables are based on data as of May 31, 16, unless otherwise indicated June 16 41

42 Appendix: Important Disclosures Analyst Certification Each authoring analyst of Canaccord Genuity whose name appears on the front page of this research hereby certifies that (i) the recommendations and opinions expressed in this research accurately reflect the authoring analyst s personal, independent and objective views about any and all of the designated investments or relevant issuers discussed herein that are within such authoring analyst s coverage universe and (ii) no part of the authoring analyst s compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by the authoring analyst in the research. Analysts employed outside the US are not registered as research analysts with FINRA. These analysts may not be associated persons of Canaccord Genuity Inc. and therefore may not be subject to the FINRA Rule 41 and NYSE Rule 47 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account. Sector Coverage Individuals identified as Sector Coverage cover a subject company s industry in the identified jurisdiction, but are not authoring analysts of the report. Compendium Report This report covers six or more subject companies and therefore is a compendium report and Canaccord Genuity and its affiliated companies hereby direct the reader to the specific disclosures related to the subject companies discussed in this report, which may be obtained at the following website (provided as a hyperlink if this report is being read electronically) disclosures.canaccordgenuity.com/en/pages/default.aspx; or by sending a request to Canaccord Genuity Corp. Research, Attn: Disclosures, P.O. Box 1337 Pacific Centre, -69 Granville Street, Vancouver, BC, Canada V7Y 1H; or by sending a request by to disclosures@canaccordgenuity.com. The reader may also obtain a copy of Canaccord Genuity s policies and procedures regarding the dissemination of research by following the steps outlined above. Distribution of Ratings: Global Stock Ratings (as of 6//16) Rating Coverage Universe IB Clients # % % Buy % 34.36% Hold % 17.75% Sell 7 3.6% 3.7% Speculative Buy % 66.67% 881* 1.% *Total includes stocks that are Under Review Canaccord Genuity Ratings System BUY: The stock is expected to generate risk-adjusted returns of over 1% during the next 1 months. HOLD: The stock is expected to generate risk-adjusted returns of -1% during the next 1 months. SELL: The stock is expected to generate negative risk-adjusted returns during the next 1 months. NOT RATED: Canaccord Genuity does not provide research coverage of the relevant issuer. Risk-adjusted return refers to the expected return in relation to the amount of risk associated with the designated investment or the relevant issuer. Risk Qualifier SPECULATIVE: Stocks bear significantly higher risk that typically cannot be valued by normal fundamental criteria. Investments in the stock may result in material loss. General Disclosures Canaccord Genuity is the business name used by certain wholly owned subsidiaries of Canaccord Genuity Group Inc., including Canaccord Genuity Inc., Canaccord Genuity Limited, Canaccord Genuity Corp., and Canaccord Genuity (Australia) Limited, an affiliated company that is 5%-owned by Canaccord Genuity Group Inc. The authoring analysts who are responsible for the preparation of this research are employed by Canaccord Genuity Corp. a Canadian broker-dealer with principal offices located in Vancouver, Calgary, Toronto, Montreal, or Canaccord Genuity Inc., a US broker-dealer with principal offices located in New York, Boston, San Francisco and Houston, or Canaccord Genuity Limited., a UK broker-dealer with June 16 4