As of September 30, 2013

(A)

(B)

(C)

Historical

Portfolio Sale Part I

Portfolio Sale Part II

Pro Forma

Assets:

Investment in Hotel Properties, Net of Accumulated Depreciation, Including Consolidation of Variable Interest Entity Assets

$

$

 -

$

 -

$

Investment in Unconsolidated Joint Ventures

 -

 -

Development Loans Receivable

 -

 -

 -

 -

Cash and Cash Equivalents

Escrow Deposits

 -

 -

Hotel Accounts Receivable, Net of Allowance for Doubtful Accounts

 -

 -

Deferred Financing Costs, Net of Accumulated Amortization

 -

 -

Due from Related Parties

 -

 -

Intangible Assets, Net of Accumulated Amortization

 -

 -

Deposits on Hotel Acquisitions

 -

 -

Other Assets

 -

 -

Hotel Assets Held for Sale

 -

Total Assets

$

$

$

$

Liabilities and Equity:

Line of Credit

$

$

 -

$

 -

$

Unsecured Term Loan

 -

 -

Unsecured Notes Payable

 -

 -

Mortgages Payable, including Net Unamortized Premium and Consolidation of Variable Interest Entity Debt

 -

 -

Accounts Payable, Accrued Expenses and Other Liabilities

 -

 -

Dividends and Distributions Payable

 -

 -

Due to Related Parties

 -

 -

Liabilities Related to Hotel Assets Held for Sale

 -

Total Liabilities

Redeemable Noncontrolling Interests - Common Units

$

 -

$

 -

$

 -

$

 -

Equity:

Shareholders' Equity:

Preferred Shares

 -

 -

Common Shares:  Class A

 -

 -

Common Shares:  Class B

 -

 -

 -

 -

Accumulated Other Comprehensive Loss

 -

 -

Additional Paid-in Capital

 -

 -

Distributions in Excess of Net Income

Total Shareholders' Equity

Noncontrolling Interests:

Noncontrolling Interests - Common Units

 -

 -

Noncontrolling Interests - Consolidated Variable Interest Entity

 -

 -

Total Noncontrolling Interests

 -

 -

Total Equity

Total Liabilities and Equity

$

$

$

$

(A)

Represents the Company’s unaudited consolidated balance sheet as of September 30, 2013 as filed in our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2013.

(B)

Represents the adjustment to reflect the portfolio sale of 12 non-core hotel properties, which includes the sale of assets with a net book value of approximately $122.2 million, the repayment of consolidated mortgage debt with an aggregate principal balance of $33.2 million, and net proceeds of approximately $122.3 million after the repayment of debt.

(C)

Represents the adjustment to reflect the probable sale of the remaining four non-core hotel properties, which are under contract to be sold and such sale is expected to occur during the first quarter of 2014.  This closing is estimated to generate net proceeds of $11.0 million, the sale of assets with a net book value of approximately $56.4 million, and the assumption by BRE NE of mortgage debt with an aggregate principal balance of $46.0 million as of September 30, 2013.  The Company estimated the net proceeds for this disposition based on the closing costs incurred for the sale of the 12 non-core properties noted above.

For the Year Ended December 31, 2012

(A)

(B)

(C)

Historical

Portfolio Sale I

Portfolio Sale II

Pro Forma

Revenue:

Hotel Operating Revenues

$

$

$

$

Interest Income from Development Loans

 -

 -

Other Revenues

 -

 -

Total Revenues

Operating Expenses:

Hotel Operating Expenses

Hotel Ground Rent

 -

 -

Real Estate and Personal Property Taxes and Property Insurance

General and Administrative (including Share Based Payments)

Acquisition and Terminated Transaction Costs

 -

 -

Depreciation and Amortization

Total Operating Expenses

Operating Income

Interest Income

 -

 -

Interest Expense

Other Expense

Loss on Debt Extinguishment

 -

Income Before Loss from Unconsolidated Joint Venture
Investments, Income Taxes and Discontinued Operations

Loss from Unconsolidated Joint Ventures

 -

 -

Loss from Remeasurement of Investment in Unconsolidated Joint Venture

 -

 -

Loss from Unconsolidated Joint Venture Investments

 -

 -

Income Before Income Taxes

Income Tax Benefit

 -

 -

Income from Continuing Operations

$

$

$

$

Earnings Per Share:

Basic

$

$

Diluted

$

$

Weighted Average Common Shares Outstanding:

Basic

Diluted

(A)

Represents the Company’s Consolidated Statement of Operations for the year ended December 31, 2012 included in the Company’s Annual Report on Form 10-K, excluding discontinued operations.

(B)

Represents the reclassification from continuing operations of the operating results related to the portfolio sale of 12 non-core hotel properties.  The reclassification of these hotel properties resulted in a reduction of approximately $4.3 million of income from continuing operations.

(C)

Represents the reclassification from continuing operations of the operating results related to the remaining four non-core hotel properties, which are under contract to be sold and such sale is expected to occur during the first quarter of 2014.  The reclassification of these hotel properties resulted in an increase of approximately $0.6 million of income from continuing operations.