HPT’s Manager, The RMR Group

HPT is externally managed by The RMR Group Inc. (Nasdaq: RMR). RMR is an alternative asset management company that was founded in 1986 to invest in real estate and manage real estate related businesses. RMR's business primarily consists of providing management services to four publicly owned real estate investment trusts, including HPT, and three real estate operating companies, including TA and Sonesta. As of September 30, 2017, RMR had approximately $28.5 billion of total assets under management, including more than 1,400 properties, and employed over 450(1) real estate professionals in more than 30 offices throughout the United States; the companies managed by RMR collectively had approximately 53,000 employees.

Strategic Investors

Strategic Investors

The initial public offering of HPT occurred in May of 1995 as the company began investing in select service and extended stay hotels with the acquisition of 21 Courtyard by Marriott properties, a time when institutional investment in select service assets wasn’t as common as it is today.

HPT believed owning lodging properties that have lower fixed costs compared to full service hotels would provide a stable base of cash flows for HPT to increase its cash available for distribution from a dependable and diverse group of operators allowing it to periodically raise dividends over time, an objective that exists today.

In 2007, HPT began investing in full service travel centers, or truck stops, located principally along the United States Interstate Highway System. HPT’s travel centers are leased to TA, one of only three travel center brand owner operators in the country with interstate highway located truck stops of national scale. The travel center industry has experienced consolidation in recent years and this has allowed certain fuel fundamentals to improve, an important factor in the profitability of HPT’s travel centers.

Since 2007, federal regulations have decreased the number of hours a professional trucker can drive in a 24 hour period and we believe this has resulted in increased sales of non-fuel products and services at our travel centers.

Experienced Managers

We believe that being managed by RMR is a competitive advantage for HPT because of RMR’s depth of management and broad-based experience in the real estate industry. As one example:

The RMR Group lodging asset management team partners with seven hotel operators, several of whom are the largest and most experienced in the world, to maximize revenues, net operating income and guest service at our leased and managed hotels. These seven operators manage portfolios ranging between 8 and 99 properties(2). This unique perspective enables RMR Asset Management, within appropriate legal bounds, to collaborate with operators in an informed way to compile business and service plans.

(1) Data as of December 31, 2016.
(2) Data as of September 30, 2017.

Efficient Operators

Leveraging the scale and expertise of RMR managed entities and employees respectively, HPT is able to realize benefits associated with:

Capital markets
activities
Public company
costs
Executive employee
coverage
Business function
coverage
Energy
initiatives
Construction
activities
Procurement

We believe RMR provides management services to HPT at costs that are lower than we would have to pay for similar quality services.

Cautionary Language

The information appearing on HPT’s website includes statements which constitute forward looking statements. These forward looking statements are based upon HPT’s present intents, beliefs or expectations, but forward looking statements are not guaranteed to occur and may not occur. HPT’s actual results may differ materially from those contained in HPT’s forward looking statements. The information contained in HPT’s filings with the Securities and Exchange Commission, including under “Risk Factors" and “Warnings Concerning Forward Looking Statements” in HPT’s periodic reports and other filings, identifies important factors that could cause HPT’s actual results to differ materially from those stated in HPT’s forward looking statements. HPT’s filings with the SEC are available on the SEC’s website at www.sec.gov and are also accessible on HPT’s website at the following link: SEC Filings. You should not place undue reliance upon forward looking statements.

The documents provided in this archived section are provided for historical purposes only. The information contained in each document is accurate only as of the date each document was originally issued or such earlier date stated in those documents. Except as required by law, Hospitality Properties Trust does not undertake any obligation to update any information contained in these documents. For current information about the company, please refer to our most recent public SEC Filings.

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