Hospitality Properties Trust Announces Second Quarter 2016 Net Income of $56 million, Down from $83.1 million in Q2 2016

Second Quarter Net Income of $0.34 per share

Normalized FFO of $1.09 per share for the Second Quarter

Comparable Hotel RevPAR for the Second Quarter Grows 4.9% Year Over Year

NEWTON, Mass.-Hospitality Properties Trust (Nasdaq: HPT) today announced its financial results for the quarter and six months ended June 30, 2016.

Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 ($ in thousands, except per share and RevPAR data) Net income available for common shareholders $ 50,895 $ 77,980 $ 97,780 $ 114,395 Net income available for common shareholders per share $ 0.34 $ 0.52 $ 0.65 $ 0.76 Adjusted EBITDA (1) $ 215,608 $ 191,059 $ 403,311 $ 358,454 Normalized FFO available for common shareholders (1) $ 165,714 $ 148,139 $ 305,868 $ 272,888 Normalized FFO available for common shareholders per share (1) $ 1.09 $ 0.99 $ 2.02 $ 1.81

Portfolio Performance

Comparable hotel RevPAR $ 103.34 $ 98.52 $ 96.72 $ 92.42 Comparable hotel RevPAR growth 4.9% – 4.7% — RevPAR (all hotels) $ 102.30 $ 98.67 $ 95.42 $ 92.51 RevPAR growth (all hotels) 3.7% – 3.1% — Coverage of HPT’s minimum returns and rents for hotels 1.34x 1.28x 1.14x 1.11x Coverage of HPT's minimum rents for travel centers 1.64x 1.73x 1.51x 1.82x

(1) Reconciliations of net income determined in accordance with U.S. generally accepted accounting principles, or GAAP, to earnings before interest, taxes, depreciation and amortization, or EBITDA, and EBITDA as adjusted, or Adjusted EBITDA, and net income available for common shareholders determined in accordance with GAAP to funds from operations, or FFO, and Normalized FFO available for common shareholders, for the quarters and six months ended June 30, 2016 and 2015 appear later in this press release.

Results for the Three and Six Months Ended June 30, 2016 and Recent Activities:

• Net Income Available for Common Shareholders: Net income available for common shareholders for the quarter ended June 30, 2016 was $50.9 million, or $0.34 per diluted share, compared to net income available for common shareholders of $78.0 million, or $0.52 per diluted share, for the quarter ended June 30, 2015. Net income available for common shareholders for the quarter ended June 30, 2016 includes $25.9 million, or $0.17 per diluted share, of estimated business management incentive fee expense. Net income available for common shareholders for the quarter ended June 30, 2015 includes an $11.0 million, or $0.07 per diluted share, gain on the sale of real estate. The weighted average number of diluted common shares outstanding was 151.4 million and 150.3 million for the quarters ended June 30, 2016 and 2015, respectively. Net income available for common shareholders for the six months ended June 30, 2016 was $97.8 million, or $0.64 per diluted share, compared to net income available for common shareholders of $114.4 million, or $0.76 per diluted share, for the six months ended June 30, 2015. Net income available for common shareholders for the six months ended June 30, 2016 includes $31.2 million, or $0.21 per diluted share, of estimated business management incentive fee expense. Net income available for common shareholders for the six months ended June 30, 2015 includes $8.8 million, or $0.06 per diluted share, of estimated business management incentive fee expense and an $11.0 million, or $0.07 per diluted share, gain on the sale of real estate. The weighted average number of diluted common shares outstanding was 151.4 million and 150.6 million for the six months ended June 30, 2016 and 2015, respectively.

• Adjusted EBITDA: Adjusted EBITDA for the quarter ended June 30, 2016 compared to the same period in 2015 increased 12.8% to $215.6 million. Adjusted EBITDA for the six months ended June 30, 2016 compared to the same period in 2015 increased 12.5% to $403.3 million.

• Normalized FFO Available for Common Shareholders: Normalized FFO available for common shareholders for the quarter ended June 30, 2016 were $165.7 million, or $1.09 per diluted share, compared to Normalized FFO available for common shareholders of $148.1 million, or $0.99 per diluted share, for the quarter ended June 30, 2015. Normalized FFO available for common shareholders for the six months ended June 30, 2016 were $305.9 million, or $2.02 per diluted share, compared to Normalized FFO available for common shareholders of $272.9 million, or $1.81 per diluted share, for the six months ended June 30, 2015.

• Hotel RevPAR (comparable hotels): For the quarter ended June 30, 2016 compared to the same period in 2015 for HPT’s 292 hotels that it owned continuously since April 1, 2015: average daily rate, or ADR, increased 3.0% to $126.64; occupancy increased 1.5 percentage points to 81.6%; and revenue per available room, or RevPAR, increased 4.9% to $103.34. For the six months ended June 30, 2016 compared to the same period in 2015 for HPT’s 291 hotels that it owned continuously since January 1, 2015: ADR increased 3.4% to $125.78; occupancy increased 0.9 percentage points to 76.9%; and RevPAR increased 4.7% to $96.72.

• Hotel RevPAR (all hotels): For the quarter ended June 30, 2016 compared to the same period in 2015 for HPT’s 305 hotels: ADR increased 2.8% to $126.77; occupancy increased 0.7 percentage points to 80.7%; and RevPAR increased 3.7% to $102.30. For the six months ended June 30, 2016 compared to the same period in 2015 for HPT’s 305 hotels: ADR increased 3.1% to $125.55; occupancy remained the same at 76.0%; and RevPAR increased 3.1% to $95.42.

• Coverage of Minimum Returns and Rents: For the quarter ended June 30, 2016, the aggregate coverage ratio of (x) total hotel revenues minus all hotel expenses and FF&E reserve escrows which are not subordinated to minimum returns and minimum rent payments to HPT to (y) HPT’s minimum returns and rents due from hotels increased to 1.34x from 1.28x for the quarter ended June 30, 2015. For the six months ended June 30, 2016, the aggregate coverage ratio of (x) total hotel revenues minus all hotel expenses and FF&E reserve escrows which are not subordinated to minimum returns and minimum rent payments to HPT to (y) HPT’s minimum returns and rents due from hotels increased to 1.14x from 1.11x for the six months ended June 30, 2015. For the quarter ended June 30, 2016, the aggregate coverage ratio of (x) total travel center revenues less travel center expenses to (y) HPT’s minimum rent due from leased travel centers decreased to 1.64x from 1.73x for the quarter ended June 30, 2015. For the six months ended June 30, 2016, the aggregate coverage ratio of (x) total travel center revenues less travel center expenses to (y) HPT’s minimum rent due from leased travel centers decreased to 1.51x from 1.82x for the quarter ended June 30, 2015. As of June 30, 2016, approximately 79% of HPT’s aggregate annual minimum returns and rents were secured by guarantees or security deposits from HPT’s managers and tenants pursuant to the terms of HPT’s operating agreements.

• Recent Property Acquisition Activities: On June 22, 2016, HPT acquired from TravelCenters of America LLC (Nasdaq: TA), or TA, two travel centers located in Remington, IN and Brazil, IN for an aggregate purchase price of $23.9 million, excluding acquisition related costs. HPT added these Petro branded travel centers to its TA No. 1 and No. 3 leases, respectively. On June 30, 2016, HPT acquired from TA a newly developed travel center located in Wilmington, IL for $22.3 million, excluding acquisition related costs. HPT added this Petro branded travel center to its TA No. 2 lease. On July 29, 2016, HPT entered into an agreement to acquire a full service hotel with 236 rooms located in the Silicon Valley region of Milpitas, CA for a purchase price of $52 million, excluding acquisition related costs. HPT currently expects to complete this acquisition during the fourth quarter of 2016. HPT plans to add this hotel to its management agreement with Sonesta International Hotels Corporation, or Sonesta.

Tenants and Managers: As of June 30, 2016, HPT had nine operating agreements with seven hotel operating companies for 305 hotels with 46,347 rooms, which represented 65% of HPT’s total annual minimum returns and rents, and five lease agreements with one travel center operating company for 197 travel centers, which represented 35% of HPT’s total annual minimum returns and rents.

• Marriott Agreements: As of June 30, 2016, 122 of HPT’s hotels were operated by subsidiaries of Marriott International, Inc. (Nasdaq: MAR), or Marriott, under three agreements. HPT’s Marriott No. 1 agreement includes 53 hotels, and provides for annual minimum return payments to HPT of $68.5 million as of June 30, 2016 (approximately $17.1 million per quarter). Because there is no guarantee or security deposit for this agreement, the minimum returns HPT receives under this agreement may be limited to available hotel cash flow after payment of operating expenses and funding of the FF&E reserve. During the three months ended June 30, 2016, HPT realized returns under its Marriott No. 1 agreement of $22.5 million. HPT’s Marriott No. 234 agreement includes 68 hotels and requires annual minimum returns to HPT of $106.2 million as of June 30, 2016 (approximately $26.6 million per quarter). During the three months ended June 30, 2016, HPT realized returns under its Marriott No. 234 agreement of $26.6 million. HPT’s Marriott No. 234 agreement is partially secured by a security deposit and a limited guarantee from Marriott; during the three months ended June 30, 2016, the available security deposit was replenished by $6.2 million from a share of hotel cash flows in excess of the minimum returns due to HPT for the period. At June 30, 2016, the available security deposit from Marriott for the Marriott No. 234 agreement was $13.2 million and there was $30.7 million remaining under Marriott’s guaranty for up to 90% of the minimum returns due to HPT to cover future payment shortfalls after the available security deposit is depleted. HPT’s Marriott No. 5 agreement includes one resort hotel in Kauai, HI which is leased to Marriott on a full recourse basis. The contractual rent due to HPT for this hotel for the three months ended June 30, 2016 of $2.5 million was paid to HPT.
• InterContinental Agreement: As of June 30, 2016, 94 of HPT’s hotels were operated by subsidiaries of InterContinental under one agreement requiring annual minimum returns and rents to HPT of $160.3 million (approximately $40.1 million per quarter). During the three months ended June 30, 2016, HPT realized returns and rents under its InterContinental agreement of $43.7 million. HPT’s InterContinental agreement is partially secured by a security deposit. During the three months ended June 30, 2016, the available security deposit was replenished by $7.2 million from a share of hotel cash flows in excess of the returns and rents due to HPT for the period. At June 30, 2016, the available InterContinental security deposit which HPT held to pay future payment shortfalls was $63.9 million.
• Wyndham Agreement: As of June 30, 2016, 22 of HPT’s hotels were operated under a management agreement with a subsidiary of Wyndham Worldwide Corporation (NYSE: WYN), or Wyndham, requiring annual minimum returns of $26.7 million (approximately $6.7 million per quarter). During the three months ended June 30, 2016, HPT realized returns under its Wyndham management agreement of $6.7 million. The guarantee provided by Wyndham with respect to the management agreement is limited and as of June 30, 2016, $2.2 million was available to cover payment shortfalls of HPT’s minimum returns. During the three months ended June 30, 2016, the guarantee was replenished by $2.2 million from a share of hotel cash flows that were in excess of the minimum returns due to HPT. HPT also leases 48 vacation units in one of the hotels to Wyndham Vacation Resorts, Inc., a subsidiary of Wyndham, which requires annual minimum rent of $1.4 million (approximately $0.4 million per quarter). The guarantee provided by Wyndham with respect to the lease is unlimited.
• Other Hotel Agreements: As of June 30, 2016, HPT’s remaining 67 hotels are operated under four agreements: one management agreement with Sonesta (33 hotels), requiring annual minimum returns of $85.2 million as of June 30, 2016 (approximately $21.3 million per quarter); one management agreement with a subsidiary of Hyatt Hotels Corporation (NYSE: H), or Hyatt (22 hotels), requiring annual minimum returns of $22.0 million as of June 30, 2016 (approximately $5.5 million per quarter); one management agreement with a subsidiary of Carlson Hotels Worldwide, or Carlson (11 hotels), requiring annual minimum returns of $12.9 million as of June 30, 2016 (approximately $3.2 million per quarter); and one lease with a subsidiary of Morgans Hotel Group Co. (Nasdaq: MHGC) (1 hotel) requiring annual minimum rent of $7.6 million as of June 30, 2016 (approximately $1.9 million per quarter). Minimum returns and rents due to HPT are partially guaranteed under the Hyatt and Carlson agreements. There is no guarantee or security deposit for the Sonesta agreement and the minimum returns HPT receives under that agreement are limited to available hotel cash flow after payment of operating expenses. The payments due to HPT under these agreements for the three months ended June 30, 2016 were paid to HPT.
• Travel Center Agreements: As of June 30, 2016, HPT’s 197 travel centers located along the U.S. Interstate Highway system were leased to TA under five lease agreements, which required aggregate annual minimum rents of $268.0 million (approximately $67.0 million per quarter). As of June 30, 2016, all payments due to HPT from TA under these leases were current.

To view full financial release and corresponding tables please click the PDF icon or visit: http://investor.shareholder.com/hptreit/releasedetail.cfm?releaseid=983582