Management

Hospitality Properties Trust is managed by Reit Management & Research LLC (RMR). RMR is a large real estate management company which was founded in 1986 to manage public investments in real estate. As of September 30, 2011, RMR oversaw one of the largest portfolios of publicly owned real estate in the United States, including over 1,450 properties, located in 46 states, District of Columbia, Puerto Rico, Ontario, Canada and Australia. RMR has over 700 employees in its headquarters and regional offices located throughout the country.

In addition to managing HPT, RMR also manages CommonWealth REIT (CWH), a publicly traded REIT that primarily owns and leases office buildings, Senior Housing Properties Trust (SNH), a publicly traded REIT that owns senior living properties and Government Properties Income Trust (GOV), a REIT that primarily owns and leases office buildings that are majority leased to government tenants. RMR also provides management services to Five Star Quality Care, Inc., a healthcare services company which is a tenant of SNH, and to Travel Centers of America, LLC, an operator of travel centers which is a tenant of HPT. An affiliate of RMR, RMR Advisors, Inc., is the investment manager of publicly offered mutual funds, which principally invests in securities of unaffiliated real estate companies. The public companies managed by RMR and its affiliates had combined total gross assets of nearly $20.0 billion as of September 30, 2011.

We believe that being managed by RMR is a competitive advantage for HPT because RMR provides HPT with a depth of management and experience which may be unequaled in the real estate industry. We also believe RMR is also able to provide management services to HPT at costs that are lower than we would have to pay for comparable services. HPT’s corporate expenses have historically been lower than the average corporate expenses for many other hospitality REITs as measured both as a percentage of gross revenues and as a percentage of gross assets.