Hospitality Properties Trust Announces 2009 First Quarter Results

NEWTON, Mass.--(Business Wire)--
Hospitality Properties Trust (NYSE: HPT) today announced its operating results
for the quarter ended March 31, 2009.

Results for the Quarter Ended March 31, 2009:

HPT`s net income available for common shareholders for the quarter ended March
31, 2009 compared to the same period in 2008 were as follows:

Quarter Ended
March 31,
2009 2008

(in thousands, except per share data)
Net income available for common $ 53,613 $ 45,929
shareholders
Net income available for common $ 0.57 $ 0.49
shareholders per share
Weighted average common shares 93,992 93,893
outstanding

The results for the quarter ended March 31, 2009 include a gain on
extinguishment of debt of $26.6 million, or $0.28 per share, relating to HPT`s
repurchase of $121.3 million face amount of its 3.8% convertible senior notes
for $87.5 million. The gain on extinguishment of debt is net of unamortized
issuance costs and the discount resulting from the adoption, effective January
1, 2009, of FASB Staff Position APB 14-1, "Accounting for Convertible Debt
Instruments That May Be Settled in Cash Upon Conversion (Including Partial Cash
Settlement)", or FSP 14-1.

Both the 2009 and 2008 periods have been adjusted to reflect the application of
FSP 14-1 retrospectively and include non-cash interest expense of $2.3 million,
or $0.02 per share, and $2.4 million, or $0.03 per share, respectively.

During the 2009 period, TravelCenters of America LLC (NYSE Amex: TA), or TA,
exercised in full its option to defer up to $5 million of rent per month under
the previously announced rent deferral agreement, which resulted in a $15
million, or $0.16 per share, reduction in net income available for common
shareholders. The results for the quarter ended March 31, 2009 also reflect the
non-accrual of $2.8 million, or $0.03 per share, of straight line rent under
HPT`s lease with TA for 145 travel centers.

HPT`s funds from operations, or FFO, for the quarter ended March 31, 2009
compared to the same period in 2008 were as follows:

Quarter Ended
March 31,
2009 2008
(in thousands, except per share data)
Funds from operations (FFO) $ 89,581 $ 108,547
FFO per share $ 0.95 $ 1.16
Weighted average common shares 93,992 93,893
outstanding

FFO for the quarter ended March 31, 2009 excludes the $26.6 million gain on
extinguishment of debt and was affected by TA`s deferral of rent and the
non-accrual of straight line rent discussed above. Both the 2009 and 2008
periods include the non-cash interest expense resulting from the adoption of FSP
14-1 discussed above.

See page 5 for a reconciliation of FFO to net income available to common
shareholders.

Hotel Portfolio Performance:

For the quarter ended March 31, 2009 compared to the same period last year,
HPT`s hotels produced revenue per available room, or RevPAR, average daily rate,
or ADR, and occupancy as follows:

Quarter Ended March 31,
2009 2008 Change

RevPAR $ 61.35 $ 76.73 -20.0 %
ADR $ 102.42 $ 112.34 -8.8 %
Occupancy 59.9 % 68.3 % -8.4pts

During the quarter ended March 31, 2009, all payments due under HPT`s hotel
leases and management contracts were paid when due or within cure periods
permitted under these contracts, except the payment due on March 27, 2009 from
Marriott International, Inc., or Marriott, for the contract that concerns
Marriott`s management of 34 hotels (which HPT has historically referred to as
its Marriott No. 3 contract) and requires minimum payment to HPT of
approximately $44.2 million/year. Marriott`s payment to HPT for this management
agreement was deficient in the amount of approximately $838,000. HPT sent
Marriott a notice regarding this deficiency and Marriott failed to pay the
deficiency amount within the applicable ten day cure period. On April 9, 2009,
HPT applied $838,000 of the $36.2 million security deposit it had for this
contract to cover the deficiency.

On April 24, 2009, HPT did not receive payments due under the Marriott No. 3
contract or under a lease for 19 hotels from HPT to Barcelo Crestline
Corporation, or Crestline (which HPT has historically referred to as its
Marriott No. 4 contract). The hotels leased to Crestline are managed by Marriott
and the minimum payments due HPT are approximately $28.5 million/year. At March
31, 2009, HPT held a $28.5 million security deposit for this contract. HPT sent
Marriott and Crestline default notices under these contracts and both Marriott
and Crestline failed to pay their deficiency amounts within the applicable cure
periods. On May 7, 2009, HPT applied $3.4 million and $2.2 million against the
security deposits it holds for the Marriott and Crestline contracts,
respectively, to cover the deficiencies. HPT is currently involved in
discussions with Marriott concerning these defaults. At this time, HPT expects
that Marriott will pay HPT the net cash flows from operations of the hotels
included in the defaulted contracts and that these payments may constitute a
large majority of the minimum payments due HPT under the defaulted contracts
during 2009. Moreover, HPT believes the security deposits it holds from Marriott
and from Crestline for these contracts are in amounts which exceed the 2009
shortfall of the payments it expects to receive compared to the minimum payments
due to HPT under these contracts. Other than applying the security deposits to
pay the differences between the net cash flows received from operations of these
hotels and the contractual minimum payments, HPT has not yet determined what
additional action, if any, it may take as a result of these defaults.

As of May 11, 2009, all other payments due to HPT from its hotel managers and
tenants under its operating agreements are current.

Financing Activities:

During the first quarter of 2009, HPT repurchased $121.3 million face amount of
its 3.8% convertible senior notes at a total cost of $87.5 million, excluding
accrued interest, using borrowings under its revolving credit facility.

In April and May of 2009, HPT repurchased an aggregate of $57.2 million original
principal amount of various issues of its senior notes for approximately $45.2
million, excluding accrued interest. HPT expects to record a gain of
approximately $11.7 million, net of unamortized discount and deferred financing
costs, on the early extinguishment of this debt in the second quarter of 2009.
HPT funded these purchases using borrowings under its revolving credit facility.

Common Dividend:

On April 8, 2009, HPT announced that as a result of current conditions in the
capital markets, it had suspended its regular quarterly common dividend for the
remainder of 2009. HPT currently expects that it will recognize substantial net
income for financial reporting purposes in 2009, and expects that its dividends
to common shareholders in 2009 will be at least equal to the minimum amounts
required in order for HPT to remain a real estate investment trust for federal
tax purposes. During the fourth quarter of 2009, HPT expects to re-evaluate
capital market conditions and its own earnings in order to determine what amount
of common share dividends will be paid in 2009. At that time, HPT will also
determine if its common dividend will be paid in cash or a combination of cash
and common shares.

Conference Call:

On Tuesday, May 12, 2009, at 11:00 a.m. Eastern Time, John Murray, President,
and Mark Kleifges, Chief Financial Officer, will host a conference call to
discuss the results for the quarter ended March 31, 2009.

The conference call telephone number is (800) 289-0529. Participants calling
from outside the United States and Canada should dial (913) 312-1270. No pass
code is necessary to access the call from either number. Participants should
dial in about 15 minutes prior to the scheduled start of the call. A replay of
the conference call will be available through Tuesday, May 19, 2009. To hear the
replay, dial (719) 457-0820. The replay pass code is 4280642.

A live audio webcast of the conference call will also be available in a listen
only mode on the company`s web site, which is located at www.hptreit.com.
Participants wanting to access the webcast should visit the company`s web site
about five minutes before the call. The archived webcast will be available for
replay on HPT`s web site for about one week after the call.

Supplemental Data:

A copy of HPT`s First Quarter 2009 Supplemental Operating and Financial Data is
available for download at HPT`s web site, www.hptreit.com.

Hospitality Properties Trust is a real estate investment trust, or REIT, which
owns 289 hotels and 185 travel centers located in 44 states, Puerto Rico and
Canada. HPT is headquartered in Newton, Massachusetts.

Quarter Ended March 31,
2009 2008
Revenues:
Hotel $ 175,701 $ 222,440
operating
revenues
(1)
Rental 73,791 89,956
income
(1)(2)
FF&E 4,803 6,183
reserve
income (3)
Interest 48 600
income
Total 254,343 319,179
revenues

Expenses:
Hotel 111,454 156,376
operating
expenses
(1)
Interest 36,541 39,926
(including
amortizati
on of
deferred
financing
costs and
debt
discounts
of $3,357
and
$3,397,
respective
ly) (4)
Depreciati 61,848 58,251
on and
amortizati
on
General 9,599 11,444
and
administra
tive
Total 219,442 265,997
expenses

Income before gain on early extinguishment of debt, gain on sale of real estate 34,901 53,182
and income taxes
Gain on 26,555 -
extinguish
ment of
debt (5)
Gain on - 645
sale of
real
estate,
net (6)
Income before income taxes 61,456 53,827
Income tax (373 ) (428 )
expense

Net income 61,083 53,399
Preferred distributions (7,470 ) (7,470 )
Net income available for common shareholders $ 53,613 $ 45,929

Calculation of FFO (7):
Net income available for common shareholders $ 53,613 $ 45,929
Add: Depreciati 61,848 58,251
on and
amortizati
on
Deferred 675 1,552
percentage
rent (8)
Deferred - 3,460
additional
returns
(9)
Less: Gain on (26,555 ) -
extinguish
ment of
debt (5)
Gain on - (645 )
sale of
real
estate (6)
Funds from operations ("FFO") $ 89,581 $ 108,547

Weighted average common shares outstanding 93,992 93,893

Per common share amounts:
Net income $ 0.57 $ 0.49
available
for common
shareholde
rs
FFO (7) $ 0.95 $ 1.16

Hospitality Properties Trust

CONSOLIDATED BALANCE SHEET
(dollars in thousands, except share data)
(Unaudited)

March 31, December 31,
2009 2008
ASSETS

Real estate properties, at cost:
Land $ 1,392,591 $ 1,392,614
Buildings, improvements and equipment 5,033,509 5,015,270
6,426,100 6,407,884
Accumulated depreciation (1,112,431 ) (1,060,203 )
5,313,669 5,347,681

Cash and cash equivalents 11,796 22,450
Restricted cash (FF&E reserve escrow) 25,014 32,026
Other assets, net 204,455 170,580
$ 5,554,934 $ 5,572,737

LIABILITIES AND SHAREHOLDERS` EQUITY

Revolving credit facility $ 546,000 $ 396,000
Senior notes, net of discounts 1,693,972 1,693,730
Convertible senior notes, net of discounts (4) 432,274 545,772
Mortgage payable 3,537 3,558
Security deposits 169,402 169,406
Accounts payable and other liabilities 93,149 128,078
Due to affiliate 2,925 3,012
Dividends payable 4,754 4,754
Total liabilities 2,946,013 2,944,310

Shareholders` equity:
Preferred shares of beneficial interest; no par value;
100,000,000 shares authorized:
Series B preferred shares; 8 7/8% cumulative 83,306 83,306
redeemable; 3,450,000 shares issued and outstanding,

aggregate liquidation preference $86,250
Series C preferred shares; 7% cumulative redeemable; 306,833 306,833
12,700,000 shares issued and outstanding, aggregate
liquidation preference $317,500
Common shares of beneficial interest, $0.01 par value; 940 940
150,000,000 shares authorized; 93,992,635 and
93,991,635 shares issued and outstanding, respectively
Additional paid-in capital (4) 3,093,691 3,093,827
Accumulated other comprehensive loss (1,120 ) (511 )
Cumulative net income 1,888,904 1,827,821
Cumulative preferred distributions (131,111 ) (123,641 )
Cumulative common distributions (2,632,522 ) (2,560,148 )
Total shareholders` equity 2,608,921 2,628,427
$ 5,554,934 $ 5,572,737
See Notes on page 7

(1) At March 31, 2009, each of
our 289 hotels are included
in one of eleven operating
agreements of which 197 are
leased to one of our
taxable REIT subsidiaries
and managed by independent
hotel operating companies
and 92 are leased to third
parties. Our 185 travel
centers are leased under
two agreements. Our
consolidated statement of
income includes hotel
operating revenues and
expenses of managed hotels
and rental income from our
leased hotels and travel
centers.

(2) During the three months
ended March 31, 2009,
TravelCenters of America
LLC, or TA, elected to
defer $15,000, or $0.16 per
share, of rent under the
previously announced rent
deferral agreement. We have
not recognized the deferred
rent as revenue due to
uncertainties regarding its
payment by TA in the
future.

(3) Various percentages of
total sales at most of our
hotels are escrowed as
reserves for future
renovations or
refurbishment, or FF&E
reserve escrows. We own all
the FF&E escrows for our
hotels. We report deposits
by our third party tenants
into the escrow accounts as
FF&E reserve income. We do
not report the amounts
which are escrowed as FF&E
reserves for our managed
hotels as FF&E reserve
income.

(4) During the first quarter of
2009, we adopted FASB Staff
Position APB 14-1,
"Accounting for Convertible
Debt Instruments That May
Be Settled in Cash Upon
Conversion (Including
Partial Cash Settlement)",
or FSP 14-1. FSP 14-1
requires the issuer of
certain convertible debt
instruments that may be
settled in cash (or other
assets) on conversion to
separately account for the
liability (debt) and equity
(conversion option)
components of the
instrument in a manner that
reflects the issuer`s non
-convertible debt borrowing
rate. Our 3.8% convertible
senior notes are within the
scope of FSP 14-1. Our
financial statements for
all periods presented have
been adjusted to reflect
the application of this
standard retrospectively.
The implementation of this
standard resulted in non
-cash interest expense for
the three months ended
March 31, 2009 and 2008 of
$2,438, or $.02 per share,
and $2,357, or $0.03 per
share, respectively. The
unamortized note discount
was $21,396 and $29,228 at
March 31, 2009 and December
31, 2008, respectively, and
the equity component was
$43,622 and $43,770 at
March 31, 2009 and December
31, 2008, respectively.

(5) During the first quarter of
2009, we recorded a
$26,555, or $0.28 per
share, gain on the
extinguishment of debt
relating to the repurchase
of our 3.8% convertible
senior notes, net of
unamortized issuance costs
and the discount resulting
from the adoption of FSP 14
-1 (see note 4).

(6) During the first quarter of
2008, we sold our Park
Plaza hotel in North
Phoenix, Arizona for $8,000
and recognized a gain on
sale of $645.

(7) We compute FFO as shown.
Our calculation of FFO
differs from the National
Association of Real Estate
Investment Trusts, or
NAREIT, definition because
we include acquisition
costs, if any, deferred
percentage rent (see Note
8) and deferred additional
returns (see Note 9) and
exclude gain on early
extinguishment of debt (see
Note 5). We consider FFO to
be an appropriate measure
of performance for a REIT,
along with net income and
cash flows from operating,
investing and financing
activities. We believe that
FFO provides useful
information to investors
because by excluding the
effects of certain
historical costs, such as
depreciation expense, it
may facilitate comparison
of operating performance
among REITs. FFO does not
represent cash generated by
operating activities in
accordance with generally
accepted accounting
principles, or GAAP, and
should not be considered an
alternative to net income
or cash flow from operating
activities as a measure of
financial performance or
liquidity. FFO is among the
important factors
considered by our board of
trustees when determining
the amount of distributions
to shareholders. Other
important factors include,
but are not limited to,
requirements to maintain
our status as a REIT,
limitations in our
revolving credit facility
and public debt covenants,
the availability of debt
and equity capital to us
and our expectation of our
future capital needs and
operating performance.

(8) In calculating net income
we recognize percentage
rental income received for
the first, second and third
quarters in the fourth
quarter, which is when all
contingencies are met and
the income is earned.
Although we defer
recognition of this revenue
until the fourth quarter
for purposes of calculating
net income, we include
these amounts in the
calculation of FFO for each
quarter of the year. The
fourth quarter FFO
calculation excludes the
amounts recognized during
the first three quarters.

(9) Our share of the operating
results of our managed
hotels in excess of the
minimum returns due to us,
or additional returns, are
generally determined based
upon annual calculations.
In calculating net income,
we recognize additional
returns in the fourth
quarter, which is when all
contingencies are met and
the income is earned.
Although we defer
recognition of this income
until the fourth quarter
for purposes of calculating
net income, we include
these amounts in the
calculation of FFO for each
quarter of the year. The
fourth quarter FFO
calculation excludes the
amounts recognized during
the first three quarters.

WARNING REGARDING FORWARD LOOKING STATEMENTS

THE FOREGOING PRESS RELEASE CONTAINS FORWARD LOOKING STATEMENTS WITHIN THE
MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER
SECURITIES LAWS. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON HPT`S CURRENT
BELIEFS AND EXPECTATIONS. HOWEVER, THESE FORWARD LOOKING STATEMENTS AND THEIR
IMPLICATIONS ARE NOT GUARANTEED TO OCCUR AND THEY MAY NOT OCCUR FOR VARIOUS
REASONS, SOME OF WHICH ARE BEYOND HPT`S CONTROL. FOR EXAMPLE:

* THIS PRESS RELEASE REFERS TO A RENT DEFERRAL AGREEMENT WHICH HPT HAS ENTERED
WITH TA. THE DESCRIPTION OF THIS ARRANGEMENT AS A DEFERRAL AGREEMENT MAY IMPLY
THAT RENT AMOUNTS WHICH ARE NOT PAID WILL BE LATER PAID. IN FACT, TA HAS A SHORT
HISTORY OF OPERATIONS AND TA HAS NOT PRODUCED CONSISTENT OPERATING PROFITS. IF
THE CURRENT GENERAL U.S. RECESSION CONTINUES FOR AN EXTENDED PERIOD OR WORSENS,
IF THE PRICE OF DIESEL FUEL INCREASES SIGNIFICANTLY OR FOR VARIOUS OTHER
REASONS, TA MAY BECOME UNABLE TO PAY THE DEFERRED RENTS DUE HPT.
* THIS PRESS RELEASE STATES THAT HPT EXPECTS THAT MARRIOTT WILL PAY HPT THE NET
CASH FLOWS FROM OPERATIONS OF THE HOTELS INCLUDED IN THE DEFAULTED CONTRACTS.
THIS EXPECTATION IS BASED UPON STATEMENTS MADE BY MARRIOTT TO HPT. HOWEVER,
MARRIOTT MAY BECOME UNABLE TO MAKE SUCH PAYMENTS IF ITS OWN FINANCIAL CONDITION
DETERIORATES OR MARRIOTT MAY REFUSE TO MAKE THESE PAYMENTS FOR SOME OTHER
REASON. HPT HAS CERTAIN CONTRACTUAL RIGHTS TO RECEIVE THESE PAYMENTS BUT
COMPANIES WHICH HAVE DEFAULTED PAYMENT OBLIGATIONS OFTEN REFUSE TO MAKE ANY
PAYMENTS, AND HPT CAN PROVIDE NO ASSURANCE WITH REGARD TO MARRIOTT`S FUTURE
ACTIONS EXCEPT BASED UPON MARRIOTT`S RECENT STATEMENTS.
* THIS PRESS RELEASE STATES THAT HPT EXPECTS THAT THE NET CASH FLOWS FROM
OPERATIONS OF THE HOTELS INCLUDED IN THE DEFAULTED CONTRACTS MAY CONSTITUTE A
LARGE MAJORITY OF THE MINIMUM PAYMENTS DUE HPT UNDER THE DEFAULTED CONTRACTS
DURING 2009. THIS EXPECTATION IS BASED UPON CASH FLOW PROJECTIONS PREPARED BY
MARRIOTT AND REVIEWED BY HPT. BOTH MARRIOTT`S AND HPT`S HISTORICAL PROJECTIONS
OF HOTEL CASH FLOWS HAVE OFTEN BEEN PROVED INACCURATE. IF THE CURRENT ECONOMIC
RECESSION IN THE U.S. CONTINUES TO WORSEN, IF THE TRAVEL INDUSTRY SUFFERS A
SERIOUS DECLINE BECAUSE OF SWINE FLU CONCERNS OR FOR OTHER REASONS, THE ACTUAL
CASH FLOWS FROM THESE HOTELS MAY BE LESS THAN THE AMOUNTS PROJECTED AND MAY BE
LOWER BY A MATERIAL AMOUNT.
* THIS PRESS RELEASE STATES THAT HPT IS HOLDING AND HAS APPLIED OR MAY APPLY
SECURITY DEPOSITS TO COVER THE SHORTFALL OF THE PAYMENTS IT HAS RECEIVED OR
EXPECTS TO RECEIVE UNDER THE DEFAULTED CONTRACTS COMPARED TO THE MINIMUM
PAYMENTS DUE HPT UNDER THESE CONTRACTS. THE SECURITY DEPOSITS WHICH HPT IS
HOLDING ARE IN FIXED AMOUNTS: APPROXIMATELY $36.2 MILLION FOR THE MARRIOTT NO. 3
CONTRACT AND APPROXIMATELY $28.5 MILLION FOR THE MARRIOTT NO. 4 CONTRACT PRIOR
TO APPLICATION OF ANY PAYMENT SHORTFALLS. AS DISCUSSED ABOVE, THERE CAN BE NO
ASSURANCE REGARDING THE AMOUNTS OF PAYMENTS HPT MAY RECEIVE UNDER THE DEFAULTED
CONTRACTS AND THE SHORTFALLS MAY EXCEED THE AMOUNTS OF THE SECURITY DEPOSITS HPT
HOLDS. MOREOVER, THESE SECURITY DEPOSITS ARE NOT ESCROWED OR OTHERWISE
SEGREGATED FROM HPT`S OTHER ASSETS AND LIABILITIES; ACCORDINGLY, WHEN HPT
APPLIES THESE SECURITY DEPOSITS TO COVER MINIMUM PAYMENTS DUE IT WILL RECORD
INCOME BUT IT WILL NOT RECEIVE CASH FLOW.
* THIS PRESS RELEASE STATES THAT HPT HAS SUSPENDED ITS REGULAR QUARTERLY
DISTRIBUTIONS TO COMMON SHAREHOLDERS FOR THE REMAINDER OF 2009. AN IMPLICATION
OF THIS STATEMENT MAY BE THAT HPT WILL RESUME ITS REGULAR QUARTERLY
DISTRIBUTIONS AFTER 2009. IN FACT, HPT MAY NOT RESUME PAYING REGULAR QUARTERLY
DISTRIBUTIONS AFTER 2009. CAPITAL MARKET CONDITIONS MAY NOT IMPROVE OR HPT`S OWN
FINANCIAL CIRCUMSTANCES MAY CHANGE SO THAT HPT BECOMES UNABLE OR UNWILLING TO
RESUME REGULAR QUARTERLY DISTRIBUTIONS TO COMMON SHAREHOLDERS. ALSO, HPT`S
HISTORICAL RATE OF COMMON SHARE DISTRIBUTIONS MAY BE CHANGED BECAUSE OF CHANGES
IN HPT`S EARNINGS OR OTHER CIRCUMSTANCES.
* THIS PRESS RELEASE STATES THAT HPT EXPECTS THAT IT WILL REALIZE SUBSTANTIAL
INCOME FOR FINANCIAL REPORTING PURPOSES AND THAT HPT`S DISTRIBUTIONS TO ITS
COMMON SHAREHOLDERS IN 2009 WILL BE AT LEAST EQUAL TO THE MINIMUM AMOUNTS
REQUIRED IN ORDER FOR HPT TO REMAIN A REIT FOR FEDERAL TAX PURPOSES. AN
IMPLICATION OF THIS STATEMENT MAY BE THAT HPT WILL PAY SUBSTANTIAL DISTRIBUTIONS
TO COMMON SHAREHOLDERS IN 2009. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON
HPT`S ASSUMPTIONS ABOUT CONTINUING PAYMENTS FROM HPT`S TENANTS AND MANAGERS. AS
EXPLAINED BELOW, THESE ASSUMPTIONS MAY PROVE INACCURATE; AND HPT`S TENANTS AND
MANAGERS MAY NOT PAY ALL OF THE AMOUNTS DUE TO HPT. MOREOVER, APPLICABLE TAX
LAWS MAY PERMIT HPT TO REMAIN A REIT AND PAY DISTRIBUTIONS LESS THAN IT HAS
HISTORICALLY PAID OR EVEN LESS THAN ITS 2009 INCOME FOR FINANCIAL REPORTING
PURPOSES. RECENT INTERNAL REVENUE SERVICE ACTIONS, SUCH AS THE DEFERRAL OF GAINS
ARISING FROM THE EXTINGUISHMENT OF DEBT, AND THE ANNOUNCEMENT WHICH PERMITS REIT
QUALIFYING DIVIDENDS TO BE PAID UP TO 90% IN SHARES, MAY PERMIT REITS LIKE HPT
TO RETAIN THEIR REIT TAX STATUS WITHOUT PAYING SUBSTANTIAL CASH DISTRIBUTIONS.
MOREOVER, THE AMOUNT OF 2009 DISTRIBUTIONS WHICH HPT MAY BE REQUIRED TO PAY IN
ORDER TO RETAIN ITS REIT TAX STATUS IS CONSIDERABLY LESS THAN THE TOTAL OF ITS
HISTORICAL RATE OF QUARTERLY DISTRIBUTIONS FOR THE REMAINDER OF 2009 WOULD HAVE
BEEN. FOR THESE REASONS AND OTHERS, HPT DOES NOT INTEND TO PROVIDE ANY ASSURANCE
REGARDING THE AMOUNT OF ANY FURTHER DISTRIBUTIONS WHICH HPT MAY PAY TO ITS
COMMON SHAREHOLDERS IN 2009, IF ANY.
* THIS PRESS RELEASE STATES THAT DURING THE FOURTH QUARTER OF 2009 HPT WILL
RE-EVALUATE CAPITAL MARKET CONDITIONS AND ITS OWN EARNINGS AND OTHER
CIRCUMSTANCES, DETERMINE THE AMOUNT OF ITS 2009 COMMON SHARES DISTRIBUTIONS AND
THEN CONSIDER AND ANNOUNCE WHETHER IT WILL PAY DISTRIBUTIONS IN CASH OR IF IT
WILL PAY UP TO 90% OF ANY DISTRIBUTIONS IN ITS SHARES. CAPITAL MARKET CONDITIONS
ARE BEYOND HPT`S CONTROL. AS NOTED ABOVE, SOME OR ALL OF HPT`S TENANTS AND
MANAGERS MAY BE UNABLE OR UNWILLING TO CONTINUE PAYING SOME OR ALL OF THE
AMOUNTS DUE TO HPT DURING 2009. ACCORDINGLY, DESPITE THE IMPLICATIONS IN THIS
PRESS RELEASE THAT HPT WILL PAY SUBSTANTIAL DISTRIBUTIONS TO COMMON SHAREHOLDERS
DURING THE FOURTH QUARTER OF 2009, THERE CAN BE NO ASSURANCE THAT, IN FACT, ANY
DISTRIBUTIONS WILL BE PAID TO COMMON SHAREHOLDERS, OR THAT THE AMOUNT WILL BE
PAID IN CASH.

FOR THESE REASONS, AMONG OTHERS, INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE
RELIANCE UPON THE FORWARD LOOKING STATEMENTS IN THIS PRESS RELEASE.

Hospitality Properties Trust
Timothy A. Bonang, 617-796-8232
Director of Investor Relations
or
Carlynn Finn, 617-796-8232
Manager of Investor Relations
www.hptreit.com

Copyright Business Wire 2009