An anonymous trustee reports

NEXPOINT HOSPITALITY TRUST ANNOUNCES FISCAL YEAR 2023 FINANCIAL RESULTS, UPDATE ON SALE OF DOUBLETREE PORTFOLIO AND HIX NASHVILLE PORTFOLIO

Nexpoint Hospitality Trust has released its financial results for the year ended Dec. 31, 2023. All amounts are expressed in U.S. dollars.

An attached table presents net income from continuing operations, funds from operations (FFO) and adjusted funds from operations (AFFO).

An attached table presents occupancy, ADR (average daily rate) and revPAR (revenue per available room).

Additional information on 2023 financial and operational results can be found on SEDAR+ in the trust's 2023 audited consolidated financial statements and management's discussion and analysis (MD&A).

DoubleTree portfolio

On March 8, 2022, the REIT began the marketing process to sell its DoubleTree (DT) portfolio. As of Dec. 31, 2023, the REIT has sold the Beaverton, Vancouver, Bend and Olympia properties for a combined purchase price of $80.25-million. The REIT used the proceeds from the Beaverton, Bend, Vancouver and Olympia sales to pay off the DT portfolio debt and reduce other portfolio debt and liabilities. On March 8, 2023, the REIT began the marketing process to sell the remaining DoubleTree property of Tigard, which is currently under purchase and sale agreement, and classified as held for sale. The REIT closed on the sale of this property on April 19, 2024, for $10.4-million.

HIX Nashville portfolio

On Feb. 6, 2023, the REIT entered into an agreement with a broker to market the Holiday Inn Express (HIX) Nashville property (the Tennessee property). On Aug. 11, 2023, the REIT's subsidiary, NHT Nashville LLC, entered into an agreement for the sale of the Tennessee property and closed on Dec. 13, 2023, for $116-million. Proceeds of the transaction were used to retire the mezzanine debt and the indebtedness related to the Tennessee property and to finance future acquisitions of real property.

Non-IFRS (international financial reporting standards) financial measures

FFO and AFFO are key measures of performance commonly used by real estate operating companies and real estate investment trusts. They are not measures recognized under IFRS and do not have standardized meanings prescribed by IFRS. FFO and AFFO may not be comparable with similar measures presented by other issuers in the real estate or lodging industries.

Attached is a reconciliation of the trust's net income to FFO and AFFO for the years ended Dec. 31, 2023, and Dec. 31, 2022

About Nexpoint Hospitality Trust

Nexpoint is a publicly traded real estate investment trust, with its units listed on the TSX Venture Exchange under the ticker NHT.U. NHT is focused on acquiring, owning and operating well-located hospitality properties in the United States that offer a high current yield and in many cases are underperforming assets with the potential to increase in value through investments in capital improvements, a market-based recovery, brand repositioning, revenue enhancements, operational improvements, expense inefficiencies, and exploiting excess land or underutilized space. The trust owns eight branded properties sponsored by Marriott, Hilton, Hyatt and Intercontinental Hotels Group, located across the United States. It is externally advised by Nexpoint Real Estate Advisors VI LP.