<SEC-DOCUMENT>0001104659-21-133027.txt : 20211102
<SEC-HEADER>0001104659-21-133027.hdr.sgml : 20211102
<ACCEPTANCE-DATETIME>20211102162156
ACCESSION NUMBER:		0001104659-21-133027
CONFORMED SUBMISSION TYPE:	424B3
PUBLIC DOCUMENT COUNT:		3
FILED AS OF DATE:		20211102
DATE AS OF CHANGE:		20211102

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ASHFORD HOSPITALITY TRUST INC
		CENTRAL INDEX KEY:			0001232582
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				861062192
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		424B3
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-260442
		FILM NUMBER:		211371623

	BUSINESS ADDRESS:	
		STREET 1:		14185 DALLAS PARKWAY SUITE 1100
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75254
		BUSINESS PHONE:		9724909600

	MAIL ADDRESS:	
		STREET 1:		14185 DALLAS PARKWAY SUITE 1100
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75254
</SEC-HEADER>
<DOCUMENT>
<TYPE>424B3
<SEQUENCE>1
<FILENAME>tm2130719d2_424b3.htm
<DESCRIPTION>424B3
<TEXT>
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                           <P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="margin: 0pt; text-align: right"><B>Filed Pursuant to Rule 424(b)(3)</B></P>

<P STYLE="margin: 0pt; text-align: right"><B>Registration No. 333-260442</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>PROSPECTUS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><IMG SRC="tm2130719d2_s11img004.jpg" ALT=""></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Ashford Hospitality Trust, Inc.<BR>
<BR>
1,745,260 Shares<BR>
Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Ashford Hospitality Trust,
Inc., together with its subsidiaries (the &ldquo;Company,&rdquo; &ldquo;our,&rdquo; &ldquo;we&rdquo; or &ldquo;us&rdquo;) is an externally-advised
real estate investment trust (&ldquo;REIT&rdquo;). While our portfolio currently consists of upscale hotels and upper upscale full-service
hotels, our investment strategy is predominantly focused on investing in upper upscale full-service hotels in the United States that
have a revenue per available room (&ldquo;RevPAR&rdquo;) generally less than two times the U.S. national average. We were formed as a
Maryland corporation in May&nbsp;2003. We are advised by Ashford Hospitality Advisors LLC (&ldquo;Ashford LLC&rdquo;), a subsidiary of
Ashford Inc. We own our lodging investments and conduct our business through Ashford Hospitality Limited Partnership (&ldquo;Ashford
Trust OP&rdquo;), our operating partnership. Ashford OP General Partner LLC, a wholly owned subsidiary of the Company, serves as the
sole general partner of our operating partnership. Our hotel properties are primarily branded under the widely recognized upscale and
upper upscale brands of Marriott, Hilton, Hyatt and Intercontinental Hotel Group.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">This prospectus relates
to the offer and sale of up to 1,745,260 shares of common stock, par value $0.01 (&ldquo;<U>Common Stock</U>&rdquo;), of Ashford Hospitality
Trust, Inc. (the &ldquo;<U>Company</U>&rdquo;), issuable upon exercise of the warrants described herein by the selling stockholders identified
in this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The selling stockholders
(which term as used herein includes their pledgees, donees, transferees or other successors-in-interest) may offer the shares from time
to time as they may determine through public transactions or through other means and at varying prices as determined by the prevailing
market price for shares or in negotiated transactions as described in the section entitled &ldquo;<I>Plan of Distribution</I>&rdquo;
beginning on page 44.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We do not know when or in
what amount the selling stockholders may offer the shares for sale. We expect that the offering price for our Common Stock will be based
on the prevailing market price of our Common Stock at the time of sale.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We are not selling any securities
under this prospectus and will not receive any of the proceeds from the sale of shares by the selling stockholder. Under the Credit Agreement
(as defined herein) in the event that the selling stockholders elect to receive the exit fee (as defined herein) in warrants and any
of such warrants are sold at a price per share of Common Stock in excess of $40.00, all obligations owed to the lenders shall be reduced
by an amount equal to 25% of the amount of such excess consideration, subject to certain adjustments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our Common Stock is listed
on the New York Stock Exchange, Inc. (the &ldquo;NYSE&rdquo;) under the symbol &ldquo;AHT.&rdquo; On November 1, 2021 the last sale price
of our Common Stock, as reported on the NYSE, was $14.75 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B>Investing in our Common
Stock involves a high degree of risk. You should review carefully the risks and uncertainties described under the heading &ldquo;Risk
Factors&rdquo; beginning on page 16 of this prospectus, and under similar headings in any amendments or supplements to this prospectus.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B>Neither the Securities
and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed upon the adequacy
or accuracy of this prospectus. Any representation to the contrary is a criminal offense.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">The date of this prospectus is November 2,
2021.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>TABLE OF CONTENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><A HREF="#a_001" STYLE="-sec-extract: exhibit">ABOUT
    THIS PROSPECTUS</A></TD>
    <TD STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><A HREF="#a_001" STYLE="-sec-extract: exhibit">ii</A></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><A HREF="#y_002">&#8203;PROSPECTUS SUMMARY</A></TD>
    <TD STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><A HREF="#y_002">1</A></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><A HREF="#y_003">The Offering</A></TD>
    <TD STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><A HREF="#y_003">12</A></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><A HREF="#y_004">Securities Offered</A></TD>
    <TD STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><A HREF="#y_004">15</A></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><A HREF="#y_005">RISK FACTORS</A></TD>
    <TD STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><A HREF="#y_005">16</A></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><A HREF="#n_001">CAUTIONARY NOTE REGARDING FORWARD-LOOKING
    STATEMENTS</A></TD>
    <TD STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><A HREF="#n_001">56</A></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><A HREF="#n_002">THE CREDIT AGREEMENT WITH OAKTREE</A></TD>
    <TD STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><A HREF="#n_002">59</A></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><A HREF="#n_003">&#8203;USE OF PROCEEDS</A></TD>
    <TD STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><A HREF="#n_003">61</A></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><A HREF="#n_004">SELLING STOCKHOLDER</A></TD>
    <TD STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><A HREF="#n_004">61</A></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><A HREF="#n_005">POLICIES AND OBJECTIVES WITH RESPECT
    TO CERTAIN ACTIVITIES</A></TD>
    <TD STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><A HREF="#n_005">63</A></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><A HREF="#a_002">OUR COMPANY</A></TD>
    <TD STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><A HREF="#a_002">65</A></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><A HREF="#a_003">DISTRIBUTION POLICY</A></TD>
    <TD STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><A HREF="#a_003">73</A></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><A HREF="#a_004">DESCRIPTION OF CAPITAL STOCK</A></TD>
    <TD STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><A HREF="#a_004">74</A></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><A HREF="#y_006">MATERIAL U.S. FEDERAL INCOME TAX
    CONSIDERATIONS</A></TD>
    <TD STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><A HREF="#y_006">88</A></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><A HREF="#y_007">PLAN OF DISTRIBUTION</A></TD>
    <TD STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><A HREF="#y_007">114</A></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><A HREF="#y_008">EXPERTS</A></TD>
    <TD STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><A HREF="#y_008">116</A></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><A HREF="#y_009">LEGAL MATTERS</A></TD>
    <TD STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><A HREF="#y_009">116</A></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><A HREF="#y_010">WHERE YOU CAN FIND MORE INFORMATION</A></TD>
    <TD STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><A HREF="#y_010">116</A></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><A HREF="#y_011">INCORPORATION BY REFERENCE</A></TD>
    <TD STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><A HREF="#y_011">117</A></TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.5in 0pt 0.25in; text-transform: uppercase; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in"><A NAME="a_001"></A>ABOUT
THIS PROSPECTUS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">This prospectus forms part
of a registration statement that we filed with the Securities and Exchange Commission (&ldquo;SEC&rdquo;) and that includes exhibits
that provide more detail of the matters discussed in this prospectus. You should read this prospectus and the related exhibits filed
with the SEC, together with the additional information described under the headings &ldquo;Where You Can Find More Information&rdquo;
and &ldquo;Incorporation by Reference&rdquo; before making your investment decision.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">You should rely only on
the information provided in this prospectus or in a prospectus supplement or any free writing prospectuses or amendments thereto. Neither
we, nor the selling stockholder, have authorized anyone else to provide you with different information. If anyone provides you with different
or inconsistent information, you should not rely on it. You should assume that the information in this prospectus is accurate only as
of the date hereof. Our business, financial condition, results of operations and prospects may have changed since that date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Neither we, nor the selling
stockholder, are offering to sell or seeking offers to purchase these securities in any jurisdiction where the offer or sale is not permitted.
We have not done anything that would permit this offering or possession or distribution of this prospectus in any jurisdiction where
action for that purpose is required, other than in the United States. Persons outside the United States who come into possession of this
prospectus must inform themselves about, and observe any restrictions relating to, the offering of the securities as to distribution
of the prospectus outside of the United States.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in"></P>

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<DIV STYLE="padding-right: 5pt; padding-left: 5pt; border: Black 1pt solid; width: 98.5%"><P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in">&nbsp;&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in"><A NAME="y_002"></A>PROSPECTUS
SUMMARY</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><I>The following summary
highlights information contained elsewhere in this prospectus. You should read carefully the entire prospectus, including &ldquo;Risk
Factors,&rdquo; and the financial statements and related notes included in the documents incorporated by reference herein, before making
a decision to invest in our Common Stock.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="margin: 0"><FONT STYLE="font-size: 10pt"><B>Overview</B></FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Ashford Hospitality Trust,
Inc., together with its subsidiaries, is an externally-advised REIT. While our portfolio currently consists of upscale hotels and upper
upscale full-service hotels, our investment strategy is predominantly focused on investing in upper upscale full-service hotels in the
U.S. that have a RevPAR generally less than two times the U.S. national average. We were formed as a Maryland corporation in May&nbsp;2003.
We are advised by Ashford LLC, a subsidiary of Ashford Inc. We own our lodging investments and conduct our business through Ashford Trust
OP, our operating partnership. Ashford OP General Partner LLC, a wholly-owned subsidiary of the Company, serves as the sole general partner
of our operating partnership. Our hotel properties are primarily branded under the widely recognized upscale and upper upscale brands
of Hilton, Hyatt, Marriott and Intercontinental Hotel Group. As of June 30, 2021, we owned interests in the following assets:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">100
                                            consolidated hotel properties, including 98 directly owned and two owned through a majority-owned
                                            investment in a consolidated entity, which represent 22,313 total rooms (or 22,286 net rooms
                                            excluding those attributable to our partner);</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                    </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">90
                                            hotel condominium&nbsp;units at WorldQuest Resort in Orlando, Florida (&ldquo;WorldQuest&rdquo;);
                                            and</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                                                                 </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">16.7%
                                            ownership in OpenKey with a carrying value of $2.7&nbsp;million.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">For U.S. federal income
tax purposes, we have elected to be treated as a REIT, which subjects us to limitations related to operating hotels. As of June 30, 2021,
our 100 hotel properties were leased or owned by our wholly-owned or majority-owned subsidiaries that are treated as taxable REIT subsidiaries
for U.S. federal income tax purposes (collectively, these subsidiaries are referred to as &ldquo;Ashford TRS&rdquo;). Ashford TRS then
engages Remington Hotels or third-party hotel management companies to operate the hotels under management contracts. Hotel operating
results related to these properties are included in our consolidated statements of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We are advised by Ashford
LLC, a subsidiary of Ashford Inc., through our Advisory Agreement (as defined below). All of the hotel properties in our portfolio are
currently asset-managed by Ashford LLC. We do not have any employees. All of the advisory services that might be provided by employees
are provided to us by Ashford LLC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We do not operate any of
our hotel properties directly; instead we employ hotel management companies to operate them for us under management contracts. Remington
Lodging &amp; Hospitality, LLC (&ldquo;Remington Hotels&rdquo;), a subsidiary of Ashford Inc., manages 68 of our 100 hotel properties
and WorldQuest. Third-party hotel management companies manage our remaining hotel properties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Ashford Inc. also provides
other products and services to us or our hotel properties through certain entities in which Ashford Inc. has an ownership interest. These
products and services include, but are not limited to project management services, debt placement and related services, audio visual
services, real estate advisory services, insurance claims services, hypoallergenic premium rooms, investment management services, broker-dealer
services and mobile key technology. Effective December&nbsp;31, 2020, the Investment Management Agreement with Ashford Investment Management,
LLC (&ldquo;AIM&rdquo;) was terminated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 2.9pt 0pt 5.5pt; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 2.9pt 0pt 5.5pt; text-align: justify; text-indent: 0.25in">Mr. Monty
J. Bennett is chairman and chief executive officer of Ashford Inc. and, together with Mr. Archie Bennett, Jr., as of June 30, 2021, owned
approximately 608,578 shares of Ashford Inc. common stock, which represented an approximate 20.1% ownership interest in Ashford Inc.,
and owned 18,758,600 shares of Ashford Inc. Series D Convertible Preferred Stock, which is exercisable (at an exercise price of $117.50
per share) into an additional approximate 3,991,191 shares of Ashford Inc. common stock, which if exercised as of June 30, 2021 would
have increased the Bennetts&rsquo; ownership interest in Ashford Inc. to 65.6%, provided that prior to August 8, 2023, the voting power
of the holders of the Ashford Inc. Series D Convertible Preferred Stock is limited to 40% of the combined voting power of all of the
outstanding voting securities of Ashford Inc. entitled to vote on any given matter. The 18,758,600 Series D Convertible Preferred Stock
owned by Mr. Monty J. Bennett and Mr. Archie Bennett, Jr. include 360,000 shares owned by trusts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 2.9pt 0pt 5.5pt; text-align: justify; text-indent: 0.25in">&nbsp;</P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 2.9pt 0pt 5.5pt; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 2.9pt 0pt 5.5pt; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 2.9pt 0pt 5.5pt; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<DIV STYLE="padding-right: 5pt; padding-left: 5pt; border: Black 1pt solid; width: 98.5%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 2.9pt 0pt 5.5pt; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Business Strategies</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Based on our primary business
objectives and forecasted operating conditions, our current key priorities and financial strategies include, among other things:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">acquisition
                                            of hotel properties, in whole or in part, that we expect will be accretive to our portfolio;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                                                                 </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">disposition
                                            of non-core hotel properties;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                  </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">pursuing
                                            capital market activities to enhance long-term stockholder value;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                                   </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">preserving
                                            capital, enhancing liquidity, and continuing current cost saving measures;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                                              </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">implementing
                                            selective capital improvements designed to increase profitability and to maintain the quality
                                            of our assets;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                        </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">implementing
                                            effective asset management strategies to minimize operating costs and increase revenues;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                                                              </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">financing
                                            or refinancing hotels on competitive terms;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                              </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">utilizing
                                            hedges, derivatives and other strategies to mitigate risks;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                              </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">accessing
                                            cost effective capital; and</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                              </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">making
                                            other investments or divestitures that our board of directors (the &ldquo;Board&rdquo;) deems
                                            appropriate.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our current investment strategy
is to focus on owning predominantly full-service hotels in the upper upscale segment in domestic markets that have RevPAR generally less
than twice the U.S. national average. We believe that as supply, demand, and capital market cycles change, we will be able to shift our
investment strategy to take advantage of new lodging-related investment opportunities as they may develop. Our investments may include:
(i)&nbsp;direct hotel investments; (ii)&nbsp;mezzanine financing through origination or acquisition; (iii)&nbsp;first mortgage financing
through origination or acquisition; (iv)&nbsp;sale-leaseback transactions; and (v)&nbsp;other hospitality transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our strategy is designed
to take advantage of lodging industry conditions and adjust to changes in market circumstances over time. Our assessment of market conditions
will determine asset reallocation strategies. While we seek to capitalize on favorable market fundamentals, conditions beyond our control
may have an impact on overall profitability, our investment opportunities and our investment returns. We will continue to seek ways to
benefit from the cyclical nature of the hotel industry.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">To take full advantage of
future investment opportunities in the lodging industry, we intend to seek investment opportunities according to the asset allocation
strategies described below. However, due to ongoing changes in market conditions, we will continually evaluate the appropriateness of
our investment strategies. The Board may change any or all of these strategies at any time without stockholder approval or notice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><I>Direct Hotel Investments
 &mdash;</I> In selecting hotels to acquire, we target hotels that offer either a high current return or the opportunity to increase in
value through repositioning, capital investments, market-based recovery, or improved management practices. Our direct hotel acquisition
strategy primarily targets full-service upscale and upper upscale hotels with RevPAR less than twice the national average in primary,
secondary, and resort markets, typically throughout the U.S. and will seek to achieve both current income and appreciation. In addition,
we will continue to assess our existing hotel portfolio and make strategic decisions to sell certain under-performing or non-strategic
hotels that no longer fit our investment strategy or criteria due to micro or macro market changes or other reasons.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<DIV STYLE="border: Black 1pt solid; padding-right: 5pt; padding-left: 5pt; width: 98.5%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><I>Other Transactions</I>&#8201;&mdash;&#8201;We
may also seek investment opportunities in other lodging related assets or businesses that offer diversification, attractive risk adjusted
returns, and/or capital allocation benefits, including mezzanine financing, first mortgage financing, and/or sale-leaseback transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Business Segments</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We currently operate in
one business segment within the hotel lodging industry: direct hotel investments. A discussion of our operating segment is incorporated
by reference to our consolidated financial statements which are incorporated by reference herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Financing Strategy</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We often utilize debt to
increase equity returns. When evaluating our future level of indebtedness and making decisions regarding the incurrence of indebtedness,
we consider a number of factors, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our
                                            leverage levels across the portfolio;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                  </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            purchase price of our investments to be acquired with debt financing;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                                  </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">impact
                                            on financial covenants;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                       </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">cost
                                            of debt;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                      </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">loan
                                            maturity schedule;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            estimated market value of our investments upon refinancing;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                        </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            ability of particular investments, and our Company as a whole, to generate cash flow to cover
                                            expected debt service; and</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                           </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">trailing
                                            twelve months net operating income of the hotel to be financed.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We may incur debt in the
form of purchase money obligations to the sellers of properties, publicly or privately placed debt instruments, or financing from banks,
institutional investors, or other lenders. Any such indebtedness may be secured or unsecured by mortgages or other interests in our properties.
This indebtedness may be recourse, non-recourse, or cross-collateralized. If recourse, such recourse may include our general assets or
be limited to the particular investment to which the indebtedness relates. In addition, we may invest in properties or loans subject
to existing loans secured by mortgages or similar liens on the properties, or we may refinance properties acquired on a leveraged basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We may use the proceeds
from any borrowings for working capital, consistent with industry practice, to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">purchase
                                            interests in partnerships or joint ventures;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                              </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">finance
                                            the origination or purchase of debt investments; or</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                    </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">finance
                                            acquisitions, expand, redevelop or improve existing properties, or develop new properties
                                            or other uses.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In addition, if we do not
have sufficient cash available, we may need to borrow to meet taxable income distribution requirements under the Internal Revenue Code
of 1986, as amended (the &ldquo;Code&rdquo;). No assurances can be given that we will obtain additional financings or, if we do, what
the amount and terms will be. Our failure to obtain future financing under favorable terms could adversely impact our ability to execute
our business strategy. In addition, we may selectively pursue debt financing on our individual properties and debt investments.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

</DIV>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in"></P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<DIV STYLE="border: Black 1pt solid; padding-right: 5pt; padding-left: 5pt; width: 98.5%"><P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Distribution Policy</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">No dividends can be paid
on the Common Stock unless and until all accumulated and unpaid dividends on our outstanding Preferred Stock (as defined below) have
been declared and paid. As of October 18, 2021, the total accumulated unpaid dividend on the outstanding Preferred Stock was approximately
$19.3 million. Additionally, under Maryland law and except for an ability to pay a dividend out of current earnings in certain limited
circumstances, no dividend may be declared or paid by a Maryland corporation unless, after giving effect to the dividend, assets will
continue to exceed liabilities and the corporation will be able to continue to pay its debts as they become due in the usual course.
As of June 30, 2021, the Company had a deficit in stockholders&rsquo; equity of approximately $83.2 million and had not generated current
earnings from which a dividend is potentially payable since the year ended December 31, 2015. For these and other reasons, there is no
expectation that a dividend on Common Stock can or would be considered or declared at any time in the foreseeable future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">On December&nbsp;8, 2020,
the Board reviewed and approved our 2021 dividend policy and on December&nbsp;11, 2020 announced that the Company does not anticipate
paying any dividends on its outstanding Common Stock and Preferred Stock for any quarter ending during 2021. The Board will continue
to review our dividend policy and make future announcements with respect thereto. We may incur indebtedness to meet distribution requirements
imposed on REITs under the Code to the extent that working capital and cash flow from our investments are insufficient to fund required
distributions. Alternatively, we may elect to pay dividends on our Common Stock in cash or a combination of cash and shares of securities
as permitted under U.S. federal income tax laws governing REIT distribution requirements. We may pay dividends in excess of our cash
flow.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Distributions are authorized
by the Board and declared by us based upon a variety of factors deemed relevant by our directors. No assurance can be given that our
dividend policy, including our dividend policy for 2020 and 2021, will not change in the future. The adoption of a dividend policy does
not commit the Board to declare or not declare future dividends or the amount thereof. The Board will continue to review our dividend
policy on at least a quarterly basis. Our ability to pay distributions to our stockholders will depend, in part, upon our receipt of
distributions from our operating partnership. This, in turn, may depend upon receipt of lease payments with respect to our properties
from indirect subsidiaries of our operating partnership, the management of our properties by our hotel managers and general business
conditions (including the impact of the COVID-19 pandemic). Distributions to our stockholders are generally taxable to our stockholders
as ordinary income. However, since a portion of our investments are equity ownership interests in hotels, which result in depreciation
and non-cash charges against our income, a portion of our distributions may constitute a non-taxable return of capital, to the extent
of a stockholder&rsquo;s tax basis in the stock. To the extent that it is consistent with maintaining our REIT status, we may maintain
accumulated earnings of Ashford TRS in that entity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our corporate charter (the
 &ldquo;Charter&rdquo;) allows us to issue preferred stock with a preference on distributions, such as our 8.45% Series&nbsp;D Cumulative
Preferred Stock, par value $0.01 per share (the &ldquo;Series&nbsp;D Preferred Stock&rdquo;), 7.375% Series&nbsp;F Cumulative Preferred
Stock, par value $0.01 per share (the &ldquo;Series&nbsp;F Preferred Stock&rdquo;), 7.375% Series&nbsp;G Cumulative Preferred Stock,
par value $0.01 per share (the &ldquo;Series&nbsp;G Preferred Stock&rdquo;), 7.50% Series&nbsp;H Cumulative Preferred Stock, par value
$0.01 per share (the &ldquo;Series&nbsp;H Preferred Stock&rdquo;) and 7.50% Series&nbsp;I Cumulative Preferred Stock, par value $0.01
per share (the &ldquo;Series&nbsp;I Preferred Stock&rdquo;, and together with the Series&nbsp;D Preferred Stock, the Series&nbsp;F Preferred
Stock, the Series&nbsp;G Preferred Stock and the Series&nbsp;H Preferred Stock, the &ldquo;Preferred Stock&rdquo;). The partnership agreement
of our operating partnership also allows the operating partnership to issue&nbsp;units with a preference on distributions. The issuance
of these series of Preferred Stock and&nbsp;units together with any similar issuance in the future, given the dividend preference on
such stock or&nbsp;units, could limit our ability to make a dividend distribution to our Common Stockholders. In addition, the same factors
impacting the Board&rsquo;s dividend policy for 2020 and 2021 may impact our ability to pay dividends on our Preferred Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<DIV STYLE="padding-right: 5pt; padding-left: 5pt; border: Black 1pt solid; width: 98.5%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Material U.S. Federal Income Tax
Considerations</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Please see the section titled
 &ldquo;Material U.S. Federal Income Tax Considerations&rdquo; below. You are urged to consult your own tax advisors for a full understanding
of the tax considerations of participating in this offering in light of your own particular circumstances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="margin: 0"><FONT STYLE="font-size: 10pt"><B>Competition</B></FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The hotel industry is highly
competitive and the hotels in which we invest are subject to competition from other hotels for guests. Competition is based on a number
of factors, most notably convenience of location, availability of rooms, brand affiliation, price, range of services, guest amenities
or accommodations offered and quality of customer service. Competition is often specific to the individual markets in which our properties
are located and includes competition from existing and new hotels. Increased competition could have a material adverse effect on the
occupancy rate, average daily room rate and rooms revenue per available room of our hotels or may require us to make capital improvements
that we otherwise would not have to make, which may result in decreases in our profitability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our principal competitors
include other hotel operating companies, ownership companies and national and international hotel brands. We face increased competition
from providers of less expensive accommodations, such as select-service hotels or independent owner-managed hotels, during periods of
economic downturn when leisure and business travelers become more sensitive to room rates. We also experience competition from alternative
types of accommodations such as home sharing companies and apartment operators offering short-term rentals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="margin: 0"><FONT STYLE="font-size: 10pt"><B>Employees</B></FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We have no employees. Our
appointed officers are provided by Ashford LLC, a subsidiary of Ashford Inc. (collectively, our &ldquo;advisor&rdquo;). Advisory services
which would otherwise be provided by employees are provided by subsidiaries of Ashford Inc. and by our appointed officers. Subsidiaries
of Ashford Inc. have approximately 96 full-time employees who provide advisory services to us. These employees directly or indirectly
perform various acquisition, development, asset management, capital markets, accounting, tax, risk management, legal, redevelopment,
and corporate management functions pursuant to the terms of our Advisory Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Governmental Regulations</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our properties are subject
to various federal, state and local regulatory laws and requirements, including, but not limited to, the Americans with Disabilities
Act of 1990, as amended (the &ldquo;ADA&rdquo;), zoning regulations, building codes and land use laws, and building, occupancy and other
permit requirements. Noncompliance could result in the imposition of governmental fines or the award of damages to private litigants.
While we believe that we are currently in material compliance with these regulatory requirements, the requirements may change or new
requirements may be imposed that could require significant unanticipated expenditures by us. Additionally, local zoning and land use
laws, environmental statutes, health and safety rules and other governmental requirements may restrict, or negatively impact, our property
operations, or expansion, rehabilitation and reconstruction activities and such regulations may prevent us from taking advantage of economic
opportunities. Future changes in federal, state or local tax regulations applicable to REITs, real property or income derived from our
real estate could impact the financial performance, operations, and value of our properties and the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Environmental Matters</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Under various federal, state,
and local laws and regulations, an owner or operator of real estate may be liable for the costs of removal or remediation of certain
hazardous or toxic substances on such property. These laws often impose liability without regard to whether the owner knew of, or was
responsible for, the presence of hazardous or toxic substances. Furthermore, a person who arranges for the disposal of a hazardous substance
or transports a hazardous substance for disposal or treatment from property owned by another may be liable for the costs of removal or
remediation of hazardous substances released into the environment at that property. The costs of remediation or removal of such substances
may be substantial, and the presence of such substances, or the failure to promptly remediate such substances, may adversely affect the
owner&rsquo;s ability to sell the affected property or to borrow using the affected property as collateral. In connection with the ownership
and operation of our properties, we, our operating partnership, or Ashford TRS may be potentially liable for any such costs. In addition,
the value of any lodging property loan we originate or acquire would be adversely affected if the underlying property contained hazardous
or toxic substances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<DIV STYLE="padding-right: 5pt; padding-left: 5pt; border: Black 1pt solid; width: 98.5%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Phase&nbsp;I environmental
assessments, which are intended to identify potential environmental contamination for which our properties may be responsible, have been
obtained on substantially all of our properties. Such Phase&nbsp;I environmental assessments included:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">historical
                                            reviews of the properties;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                              </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">reviews
                                            of certain public records;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                           </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">preliminary
                                            investigations of the sites and surrounding properties;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                            </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">screening
                                            for the presence of hazardous substances, toxic substances, and underground storage tanks;
                                            and</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                                                                 </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            preparation and issuance of a written report.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Such Phase&nbsp;I environmental
assessments did not include invasive procedures, such as soil sampling or ground water analysis. Such Phase&nbsp;I environmental assessments
have not revealed any environmental liability that we believe would have a material adverse effect on our business, assets, results of
operations, or liquidity, and we are not aware of any such liability. To the extent Phase&nbsp;I environmental assessments reveal facts
that require further investigation, we would perform a Phase&nbsp;II environmental assessment. However, it is possible that these environmental
assessments will not reveal all environmental liabilities. There may be material environmental liabilities of which we are unaware, including
environmental liabilities that may have arisen since the environmental assessments were completed or updated. No assurances can be given
that: (i)&nbsp;future laws, ordinances, or regulations will not impose any material environmental liability; or (ii)&nbsp;the current
environmental condition of our properties will not be affected by the condition of properties in the vicinity (such as the presence of
leaking underground storage tanks) or by third parties unrelated to us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We believe our properties
are in compliance in all material respects with all federal, state, and local ordinances and regulations regarding hazardous or toxic
substances and other environmental matters. Neither we nor, to our knowledge, any of the former owners of our properties have been notified
by any governmental authority of any material noncompliance, liability, or claim relating to hazardous or toxic substances or other environmental
matters in connection with any of our properties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="margin: 0"><FONT STYLE="font-size: 10pt"><B>Insurance</B></FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We maintain comprehensive
insurance, including liability, property, workers&rsquo; compensation, rental loss, environmental, terrorism, cybersecurity and, when
available on commercially reasonable terms, flood, wind and earthquake insurance, with policy specifications, limits, and deductibles
customarily carried for similar properties. Certain types of losses (for example, matters of a catastrophic nature such as acts of war
or substantial known environmental liabilities) are either uninsurable or require substantial premiums that are not economically feasible
to maintain. Certain types of losses, such as those arising from subsidence activity, are insurable only to the extent that certain standard
policy exceptions to insurability are waived by agreement with the insurer. We believe, however, that our properties are adequately insured,
consistent with industry standards.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Franchise Licenses</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We believe that the public&rsquo;s
perception of quality associated with a franchisor can be an important feature in the operation of a hotel. Franchisors provide a variety
of benefits for franchisees, which include national advertising, publicity, and other marketing programs designed to increase brand awareness,
training of personnel, continuous review of quality standards, and centralized reservation systems.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">As of June 30, 2021, we
owned interests in 100 hotel properties, 93 of which operated under the following franchise licenses or brand management agreements:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Embassy Suites is a registered trademark of Hilton Hospitality,
Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Hilton is a registered trademark of Hilton Hospitality,
Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Hilton Garden Inn is a registered trademark of Hilton Hospitality,
Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Hampton Inn is a registered trademark of Hilton Hospitality,
Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<DIV STYLE="padding-right: 5pt; padding-left: 5pt; border: Black 1pt solid; width: 98.5%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Marriott is a registered trademark of Marriott International,
Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">SpringHill Suites is a registered trademark of Marriott
International, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Residence Inn by Marriott is a registered trademark of Marriott
International, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Courtyard by Marriott is a registered trademark of Marriott
International, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Fairfield Inn by Marriott is a registered trademark of Marriott
International, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">TownePlace Suites is a registered trademark of Marriott
International, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Renaissance is a registered trademark of Marriott International,
Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Ritz-Carlton is a registered trademark of Marriott International,
Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Hyatt Regency is a registered trademark of Hyatt Hotels
Corporation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Sheraton is a registered trademark of Marriott International,
Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">W is a registered trademark of Marriott International, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Westin is a registered trademark of Marriott International,
Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Crowne Plaza is a registered trademark of InterContinental
Hotels Group.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Hotel Indigo is a registered trademark of InterContinental
Hotels Group.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">One Ocean is a registered trademark of Remington Hotels,
LLC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Tribute Portfolio is a registered trademark of Marriott
International, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our management companies,
including Remington Hotels, must operate each hotel pursuant to the terms of the related franchise or brand management agreement and
must use their best efforts to maintain the right to operate each hotel pursuant to such terms. In the event of termination of a particular
franchise or brand management agreement, our management companies must operate any affected hotels under another franchise or brand management
agreement, if any, that we enter into. We anticipate that many of the additional hotels we acquire could be operated under franchise
licenses or brand management agreements as well.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our franchise licenses and
brand management agreements generally specify certain management, operational, recordkeeping, accounting, reporting, and marketing standards
and procedures with which the franchisee or brand operator must comply, including requirements related to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">training
                                            of operational personnel;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                           </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">safety;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">maintaining
                                            specified insurance;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                         </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">types
                                            of services and products ancillary to guestroom services that may be provided;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                                             </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">display
                                            of signage; and</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">type,
                                            quality, and age of furniture, fixtures, and equipment included in guestrooms, lobbies, and
                                            other common areas.</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

</DIV>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0"></P>

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<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<DIV STYLE="padding-right: 5pt; padding-left: 5pt; border: Black 1pt solid; width: 98.5%"><P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin: 0"><B>Seasonality</B></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our properties&rsquo; operations
historically have been seasonal as certain properties maintain higher occupancy rates during the summer months, while certain other properties
maintain higher occupancy rates during the winter months. This seasonality pattern can cause fluctuations in our quarterly lease revenue
under our&nbsp;percentage leases. Quarterly revenue also may be adversely affected by renovations and repositionings, our managers&rsquo;
effectiveness in generating business and by events beyond our control, such as the COVID-19 pandemic and government-issued travel restrictions
in response, extreme weather conditions, natural disasters, terrorist attacks or alerts, civil unrest, government shutdowns, airline
strikes or reduced airline capacity, economic factors and other considerations affecting travel. To the extent that cash flows from operations
are insufficient during any quarter to enable us to make quarterly distributions to maintain our REIT status due to temporary or seasonal
fluctuations in lease revenue, we expect to utilize cash on hand, borrowings and Common Stock to fund required distributions. However,
we cannot make any assurances that we will make distributions in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Access Reports and Other Information</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We maintain a website at
www.ahtreit.com. On our website, we make available free-of-charge our annual reports on Form 10-K, quarterly reports on Form 10-Q, current
reports on Form 8-K, and other reports filed or furnished pursuant to Section&nbsp;13(a) or 15(d) of the Securities Exchange Act of 1934,
as amended (the &ldquo;Exchange Act&rdquo;), as soon as reasonably practicable after we electronically file or furnish such material
with the SEC. All of our filed reports can also be obtained at the SEC&rsquo;s website at www.sec.gov. In addition, our Code of Business
Conduct and Ethics, Code of Ethics for the Chief Executive Officer, Chief Financial Officer, and Chief Accounting Officer, Corporate
Governance Guidelines, and Board Committee Charters are also available free-of-charge on our website or can be made available in print
upon request.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">A description of any substantive
amendment or waiver of our Code of Business Conduct and Ethics or our Code of Ethics for the Executive Officer, Chief Financial Officer
and Chief Accounting Officer will be disclosed on our website under the Corporate Governance section. Any such description will be located
on our website for a period of 12 months following the amendment or waiver. We also use our website to distribute company information,
and such information may be deemed material. Accordingly, investors should monitor our website, in addition to our press releases, SEC
filings and public conference calls and webcasts. The contents of our website are not, however, a part of this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Recent Developments</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Privately Negotiated Exchange
Transactions</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">From December&nbsp;8, 2020
through October 29, 2021, the Company entered into privately negotiated exchange agreements with certain holders of its Preferred Stock
in reliance on Section&nbsp;3(a)(9) of the Securities Act. As of October 29, 2021, the Company agreed to exchange a total of 7,763,710
shares of Common Stock for an aggregate of 9,035,282 shares of Preferred Stock. After the close of business on July 16, 2021, the Company
completed a one-for-ten reverse stock split of the outstanding shares of its Common Stock. The amounts of Common Stock reported for these
privately negotiated exchange transactions have been adjusted for the reverse stock split.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><I>Keystone Purchase Agreement</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
May 17, 2021 the Company and Keystone Capital Partners, LLC (&ldquo;Keystone&rdquo;), entered into a purchase agreement (the &ldquo;Keystone
Purchase Agreement&rdquo;), which provided that subject to the terms and conditions set forth therein, the Company may sell to Keystone
up to 30,698,373 shares of Common Stock, from time to time, at the Company&rsquo;s sole discretion, during the commencement period. Concurrently
with the execution of the Keystone Purchase Agreement, on May 17, 2021, the Company and Keystone entered into a related registration
rights agreement (the &ldquo;Keystone Registration Rights Agreement&rdquo;). Under the terms and subject to the conditions of the Keystone
Purchase Agreement, the Company had the right, but not the obligation, to sell to Keystone, and Keystone was obligated to purchase up
to 30,698,373 shares of Common Stock. Such sales of Common Stock by the Company, if any, was subject to certain limitations, at the Company&rsquo;s
sole discretion, over a 24-month period commencing May 17, 2021. In connection with this transaction and pursuant to the Keystone Registration
Rights Agreement, on May 20, 2021, we filed a resale registration statement on Form S-11 (File No. 333-256326), which was declared effective
by the SEC on June 1, 2021 (the &ldquo;Keystone Registration Statement&rdquo;). As of October 29, 2021, we had sold an aggregate of 30,698,373
shares of Common Stock to Keystone pursuant to the Keystone Purchase Agreement, </FONT>which was the maximum number of shares of our
Common Stock registered for resale by Keystone under the Keystone Registration Statement. Accordingly, no shares are available for sale
under the Keystone Purchase Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<DIV STYLE="padding-right: 5pt; padding-left: 5pt; border: Black 1pt solid; width: 98.5%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><I>YA Standby Equity Distribution
Agreement</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">On June 7, 2021, the Company
entered into a second Standby Equity Distribution Agreement (the &ldquo;SEDA&rdquo;) with YA II PN, Ltd., (&ldquo;YA&rdquo;), pursuant
to which the Company will be able to sell up to 37,904,554 shares of its Common Stock (the &ldquo;YA Commitment Amount&rdquo;) at the
Company&rsquo;s request any time during the commitment period and terminating on the earliest of (i)&nbsp;the first day of the month
next following the 36-month anniversary of the Second SEDA or (ii)&nbsp;the date on which YA shall have made payment of Advances (as
defined in the SEDA) pursuant to the SEDA for common shares equal to the YA Commitment Amount. The shares would be purchased at (i) 95%
of the Market Price (as defined in the SEDA) if the applicable pricing period is two consecutive trading days or (ii) 96% of the Market
Price if the applicable pricing period is five consecutive trading days, and, in each case, would be subject to certain limitations including
that YA could not purchase any shares that would result in it owning more than 4.99% of the Company&rsquo;s Common Stock. In connection
with this transaction, on June 9, 2021, we filed a resale registration statement on Form S-11 (File No. 333-256916) which was declared
effective by the SEC on June 17, 2021 (the &ldquo;SEDA Registration Statement&rdquo;) to register for resale by YA a total of 37,904,554
shares of Common Stock that may be issued and sold by the Company to YA pursuant to the SEDA. As of October 29, 2021, we had sold an
aggregate of 37,904,554 shares of Common Stock to YA pursuant to the SEDA, which was the maximum number of shares of our Common Stock
registered for resale by YA under the SEDA. Accordingly, no shares are available for sale under the SEDA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><I>Seven Knots Purchase
Agreement</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
June 18, 2021, the Company and Seven Knots, LLC (&ldquo;Seven Knots&rdquo;), entered into a purchase agreement (the &ldquo;Seven Knots
Purchase Agreement&rdquo;), which provided that subject to the terms and conditions set forth therein, the Company may sell to Seven
Knots up to 40,093,080 shares of Common Stock, from time to time, at the Company&rsquo;s sole discretion, during the investment period.
Concurrently with the execution of the Seven Knots Purchase Agreement, on June 18, 2021, the Company and Seven Knots entered into a related
registration rights agreement (the &ldquo;Seven Knots Registration Rights Agreement&rdquo;). Under the terms and subject to the conditions
of the Seven Knots Purchase Agreement, the Company had the right, but not the obligation, to sell to Seven Knots, and Seven Knots was
obligated to purchase up to 40,093,080 shares of Common Stock. Such sales of Common Stock by the Company, if any, is subject to certain
limitations, at the Company&rsquo;s sole discretion, over a 24-month period commencing June 18, 2021. In connection with this transaction
and pursuant to the Seven Knots Registration Rights Agreement, on June 21, 2021, we filed a resale registration statement on Form S-11
(File No. 333-257192) (the &ldquo;Seven Knots Registration Statement&rdquo;). The Seven Knots Registration Statement was declared effective
on July 1, 2021. As of October 29, 2021, we had sold an aggregate of 40,093,080 shares of Common Stock to Seven Knots pursuant to the
Seven Knots Purchase Agreement, </FONT>which was the maximum number of shares of our Common Stock registered for resale by Seven Knots
under the Seven Knots Registration Statement. Accordingly, no shares are available for sale under the Seven Knots Purchase Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><I>Reverse Stock Split</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">On the close of business
on July 16, 2021, the Company completed a one-for-ten reverse stock split of the Company&rsquo;s outstanding Common Stock. At the market
opening on July 19, 2021, the Common Stock began trading on the New York Stock Exchange on a split-adjusted basis. As a result of the
reverse stock split, the number of outstanding shares of Common Stock was reduced to approximately 26.5 million shares based on the shares
outstanding as of July 16, 2021. The Purchase Agreement was signed after the effective time of the reverse stock split and thus no further
adjustments will be required to the amount available under the Purchase Agreement. The rights and privileges of stockholders are unaffected
by the reverse stock split. There will be no change to the number of authorized shares of the Common Stock as a result of the reverse
stock split. Unless otherwise stated herein, historical share amounts have not been adjusted to give retroactive effect to the reverse
stock split.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<DIV STYLE="padding-right: 5pt; padding-left: 5pt; border: Black 1pt solid; width: 98.5%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><I>B. Riley Purchase Agreement</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
July 2, 2021, the Company and &nbsp;B. Riley Principal Capital, LLC (&ldquo;B. Riley&rdquo;), entered into a purchase agreement (the
 &ldquo;B. Riley Purchase Agreement&rdquo;), which provided that subject to the terms and conditions set forth therein, the Company may
sell to B. Riley up to 46,227,744 shares of Common Stock, from time to time, at the Company&rsquo;s sole discretion, during the commencement
period. Concurrently with the execution of the B. Riley Purchase Agreement, on July 2, 2021, the Company and B. Riley entered into a
related registration rights agreement (the &ldquo;B. Riley Registration Rights Agreement&rdquo;). Under the terms and subject to the
conditions of the B. Riley Purchase Agreement, the Company had the right, but not the obligation, to sell to B. Riley, and B. Riley was
obligated to purchase up to 46,227,744 shares of Common Stock. Such sales of Common Stock by the Company, if any, is subject to certain
limitations, at the Company&rsquo;s sole discretion, over a 24-month period commencing July 2, 2021. In connection with this transaction
and pursuant to the B. Riley Registration Rights Agreement, on July 2, 2021, we filed a resale registration statement on Form S-11 (File
No. 333-257669) (the &ldquo;B. Riley Registration Statement&rdquo;). The B. Riley Registration Statement was declared effective on July
15, 2021, but no offers to sell shares pursuant to this placement had been made prior to the effectiveness of the reverse stock split.
The amount that the Company may sell to B. Riley under the B. Riley Purchase Agreement was automatically and proportionally adjusted
to 4,622,774 following the effective date of the one-for-ten reverse stock split. As of October 29, 2021, we had sold an aggregate of
4,622,774 shares of Common Stock to B. Riley pursuant to the B. Riley Purchase Agreement, </FONT>which was the maximum number of shares
of our Common Stock registered for resale by B. Riley under the B. Riley Registration Statement. Accordingly, no shares are available
for sale under the B. Riley Purchase Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><I>M3A Purchase Agreement</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
September 9, 2021, the Company and &nbsp;M3A LP (&ldquo;M3A&rdquo;), entered into a purchase agreement (the &ldquo;M3A Purchase Agreement&rdquo;),
which provided that subject to the terms and conditions set forth therein, the Company may sell to M3A up to 6,040,888 shares of Common
Stock, from time to time, at the Company&rsquo;s sole discretion, during the commencement period. Concurrently with the execution of
the M3A Purchase Agreement, on September 9, 2021, the Company and M3A entered into a related registration rights agreement (the &ldquo;M3A
Registration Rights Agreement&rdquo;). Under the terms and subject to the conditions of the M3A Purchase Agreement, the Company had the
right, but not the obligation, to sell to M3A, and M3A was obligated to purchase up to 6,040,888 shares of Common Stock. Such sales of
Common Stock by the Company, if any, is subject to certain limitations, at the Company&rsquo;s sole discretion, over a 24-month period
commencing September 9, 2021. In connection with this transaction and pursuant to the M3A Registration Rights Agreement, on September
10, 2021, we filed a resale registration statement on Form S-11 (File No. 333-259427) (the &ldquo;M3A Registration Statement&rdquo;).
The M3A Registration Statement was declared effective on September 29, 2021. As of October 29, 2021, </FONT>we have sold 300,000 shares
of Common Stock pursuant to the M3A Purchase Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Summary Risk Factors</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">An investment in our Common
Stock involves material risks. You should consider carefully the risks described below and under &ldquo;Risk Factors&rdquo; before purchasing
shares of our Common Stock in this offering:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">adverse
                                            effects of the COVID-19 pandemic, including a significant reduction in business and personal
                                            travel and travel restrictions in regions where our hotels are located, and one or more possible
                                            recurrences of COVID-19 cases causing a further reduction in business and personal travel
                                            and potential reinstatement of travel restrictions by state or local governments;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                     </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">ongoing
                                            negotiations with our lenders regarding potential forbearance or the exercise by our lenders
                                            of their remedies for default under our loan agreements;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                               </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">actions
                                            by our lenders to accelerate loan balances and foreclose on the hotel properties that are
                                            security for our loans that are in default;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                            </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">actions
                                            by the lenders of our senior secured credit facility to foreclose on our assets which are
                                            pledged as collateral;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                        </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">general
                                            volatility of the capital markets and the market price of our Common Stock and Preferred
                                            Stock;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                                                                </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">availability,
                                            terms, and deployment of capital;</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

</DIV>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0"></P>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.25in"></TD><TD STYLE="text-align: justify; width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">unanticipated
                                            increases in financing and other costs, including a rise in interest rates;</TD></TR><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                                                  </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.25in"></TD><TD STYLE="text-align: justify; width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">actual
                                            and potential conflicts of interest with Ashford Inc. and its subsidiaries (including Ashford
                                            LLC, Remington Hotels and Premier), Braemar Hotels &amp; Resorts Inc. (&ldquo;Braemar&rdquo;),
                                            our executive officers and our non-independent directors;</TD></TR><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                    </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.25in"></TD><TD STYLE="text-align: justify; width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            expenditures, disruptions and uncertainties associated with a potential proxy contest;</TD></TR><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                                                   </TABLE>

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<TD STYLE="text-align: justify; width: 0.25in"></TD><TD STYLE="text-align: justify; width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">changes
                                            in personnel of Ashford LLC or the lack of availability of qualified personnel;</TD></TR><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                                                </TABLE>

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<TD STYLE="text-align: justify; width: 0.25in"></TD><TD STYLE="text-align: justify; width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">changes
                                            in governmental regulations, accounting rules, tax rates and similar matters;</TD></TR><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                                              </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.25in"></TD><TD STYLE="text-align: justify; width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our
                                            ability to implement effective internal controls to address the material weakness identified
                                            in our Annual Report on Form 10-K for the annual period ended December&nbsp;31, 2020;</TD></TR><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                        </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.25in"></TD><TD STYLE="text-align: justify; width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            timing or outcome of the SEC investigation;</TD></TR><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                        </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.25in"></TD><TD STYLE="text-align: justify; width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">legislative
                                            and regulatory changes, including changes to the Code, and related rules, regulations and
                                            interpretations governing the taxation of REITs;</TD></TR><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                          </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.25in"></TD><TD STYLE="text-align: justify; width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">limitations
                                            imposed on our business and our ability to satisfy complex rules in order for us to qualify
                                            as a REIT for U.S. federal income tax purposes; and</TD></TR><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                             </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.25in"></TD><TD STYLE="text-align: justify; width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">future
                                            sales and issuances of our Common Stock or other securities, including the issuance of additional
                                            warrants to purchase shares of our Common Stock as a result of upward adjustments pursuant
                                            to the Credit Agreement and the Warrant Certificate included as Exhibit A to Amendment No.
                                            1 to the Credit Agreement and the sale or issuance of our Common Stock under an equity line
                                            of credit and/or in any privately negotiated exchange transactions completed in reliance
                                            on Section&nbsp;3(a)(9) of the Securities Act, might result in dilution and could cause the
                                            price of our Common Stock to decline.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="text-align: justify; font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Restrictions
on Ownership and Transfer</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In order for us to qualify
as a REIT under the Code, not more than 50% of the value of the outstanding shares of our stock may be owned, actually or constructively,
by five or fewer individuals (as defined in the Code to include certain entities) during the last half of a taxable year (other than
the first year for which an election to be a REIT has been made by us). In addition, if we, or one or more owners (actually or constructively)
of 10% or more of us, actually or constructively owns 10% or more of a tenant of ours (or a tenant of any partnership in which we are
a partner), the rent received by us (either directly or through any such partnership) from such tenant will not be qualifying income
for purposes of the REIT gross income tests of the Code. Our stock must also be beneficially owned by 100 or more persons during at least
335&nbsp;days of a taxable year of 12 months or during a proportionate part of a shorter taxable year (other than the first year for
which an election to be a REIT has been made by us).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our Charter contains restrictions
on the ownership and transfer of our capital stock that are intended to assist us in complying with these requirements and continuing
to qualify as a REIT. The relevant sections of our Charter provide that, subject to the exceptions described below, no person or persons
acting as a group may own, or be deemed to own by virtue of the attribution provisions of the Code, more than (i)&nbsp;9.8% of the lesser
of the number or value of shares of our Common Stock outstanding or (ii)&nbsp;9.8% of the lesser of the number or value of the issued
and outstanding preferred or other shares of any class or series of our stock. We refer to this restriction as the &ldquo;ownership limit.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The ownership attribution
rules under the Code are complex and may cause stock owned actually or constructively by a group of related individuals and/or entities
to be owned constructively by one individual or entity. As a result, the acquisition of less than 9.8% of our Common Stock (or the acquisition
of an interest in an entity that owns, actually or constructively, our Common Stock) by an individual or entity, could, nevertheless
cause that individual or entity, or another individual or entity, to own constructively in excess of 9.8% of the outstanding Common Stock
and thereby subject the Common Stock to the ownership limit.&nbsp;</P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<DIV STYLE="padding: 10pt; border: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The
                                            Board may, in its sole discretion, waive the ownership limit with respect to one or more
                                            stockholders who would not be treated as &ldquo;individuals&rdquo; for purposes of the Code
                                            if it determines that such ownership will not cause any &ldquo;individual&rsquo;s&rdquo;
                                            beneficial ownership of shares of our capital stock to jeopardize our status as a REIT (for
                                            example, by causing any tenant of ours to be considered a &ldquo;related party tenant&rdquo;
                                            for purposes of the REIT qualification rules).</P>

<P STYLE="text-align: justify; font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Our Corporate
Information</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our principal executive
offices are located at 14185 Dallas Parkway, Suite 1200, Dallas, Texas 75254. Our telephone number is (972) 490-9600. Our website is
www.ahtreit.com. The information on, or otherwise accessible through, our website is not incorporated into, and does not form a part
of, this prospectus or any other report or document we file with or furnish with the SEC.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-transform: uppercase; text-align: center"><A NAME="y_003"></A>The
Offering</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On January 15, 2021, the
Company and Ashford Trust OP entered into a Credit Agreement (the &ldquo;Original Credit Agreement&rdquo;) with certain funds and accounts
managed by Oaktree Capital Management, L.P. (&ldquo;Oaktree&rdquo;) and Oaktree Fund Administration, LLC, as administrative agent (the
 &ldquo;Administrative Agent&rdquo;). The Original Credit Agreement provides that, subject to the conditions set forth therein, Oaktree
will make available to the Company a senior secured term loan facility comprised of (a) initial term loans (the &ldquo;Initial Term Loan&rdquo;)
in an aggregate principal amount of $200,000,000, (b) initial delayed draw term loans in an aggregate principal amount of up to $150,000,000
(the &ldquo;Initial DDTL&rdquo;) and (c) additional delayed draw term loans in an aggregate principal amount of up to $100,000,000 (the
 &ldquo;Additional DDTL,&rdquo; and together with the Initial Term Loan and the Initial DDTL, collectively, the &ldquo;Loans&rdquo;),&nbsp;in
each case to fund general corporate operations of the Company and its subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Loans under the Original
Credit Agreement will bear interest (a) with respect to the Initial Term Loan and the Initial DDTL, at an annual rate equal to 16% for
the first two years, reducing to 14% thereafter and (b) with respect to the Additional DDTL, at an annual rate equal to 18.5% for the
first two years, reducing to 16.5% thereafter. Interest payments on the Loans will be due and payable in arrears on the last business
day of March, June, September and December of each calendar year and the Maturity Date (as defined below). For the first two years following
the closing of the Original Credit Agreement, the Company will have the option to pay accrued interest &ldquo;in kind&rdquo; by adding
such amount of accrued interest to the outstanding principal balance of the Loans (such interest, &ldquo;PIK Interest&rdquo;). The initial
maturity date of the Original Credit Agreement (the &ldquo;Maturity Date&rdquo;) shall be three years from January 15, 2021, with two
optional one-year extensions subject to satisfaction of certain terms and conditions. Oaktree shall, subject to certain terms, have the
ability to make protective advances to the Company pursuant to the terms of the Original Credit Agreement to cure defaults with respect
to mortgage and mezzanine-level indebtedness of subsidiaries of the Company having principal balances in excess of $400,000,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Loans under the Original
Credit Agreement are subject to prepayment with the net cash proceeds of certain events including asset sales, casualty events, excess
proceeds from refinancings of property-level debt and the issuance of indebtedness that is not permitted to be incurred under the Original
Credit Agreement, in certain cases subject to the right of the Company to reinvest such net cash proceeds in assets useful to the business
or use a portion thereof to fund operating shortfalls at property-level subsidiaries. The Company will pay certain customary fees and
expenses in connection with the funding of the Loans under the Original Credit Agreement. Certain prepayments or repayments of the Loans
are subject to prepayment premiums as described in the Original Credit Agreement, including a customary make-whole premium in respect
of prepayments made within the first 24 months after the closing of the Original Credit Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Original Credit Agreement
contains certain customary affirmative and negative covenants,&nbsp;subject to certain carve-outs and exceptions, including restrictions
on the ability of the Company to incur debt and liens and make investments and dispositions, and a covenant to maintain not less than
$50,000,000 in unrestricted cash. The Original Credit Agreement also contains customary events of default including (subject to customary
grace periods and materiality qualifiers), among others, (a) the failure to re-pay the Loans made under the Original Credit Agreement
when due, (b) the failure to perform or observe any term, covenant or agreement contained in the Original Credit Agreement and accompanying
documents, (c) cross-default to indebtedness of the Company having an aggregate principal amount of more than $40,000,000, (d) cross-acceleration
to indebtedness of property-level subsidiaries having an aggregate principal amount in excess of $400,000,000 and (e) the institution
of insolvency proceedings.&nbsp;</P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<DIV STYLE="padding: 10pt; border: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The
                                            Company and certain of its subsidiaries that are guarantors have granted liens on substantially
                                            all of their assets to Oaktree to secure the obligations under the Original Credit Agreement,
                                            subject to certain exceptions and permitted liens.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Upon the earliest of the
repayment in full of the Loans, the final maturity of the Loans under the Original Credit Agreement or the acceleration of the Loans
after an event of default, Oaktree will be entitled to an exit fee (the &ldquo;Exit Fee&rdquo;), which, at the election of Oaktree, will
be satisfied by either the payment of a cash fee equal to (1) 15% of all Loans advanced plus any outstanding capitalized PIK Interest
(which may, subject to certain conditions, at the election of the company, be paid in the form of common stock of the Company) or (2)
warrants for the purchase of common stock of the Company equal to 19.9% of all common stock outstanding on the closing date of the Original
Credit Agreement (calculated on a pro forma basis after giving effect to the issuance of such shares of common stock upon exercise of
the warrants) plus 1% multiplied by the quotient obtained by dividing the aggregate amount of all Initial DDTL advances made under the
Original Credit Agreement by $10 million, subject to additional adjustments and conditions as more fully described in the Original Credit
Agreement and the Warrant Certificate included as Exhibit A to Amendment No. 1 to the Credit Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Investor Agreement</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In connection with the transactions
contemplated by the Original Credit Agreement, on January 15, 2021, the Company entered into an Investor Agreement (the &ldquo;Investor
Agreement&rdquo;) with Oaktree. The Investor Agreement sets forth various arrangements and restrictions with respect to the parties,
including, among others, the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Board Observers</I>. Until
the later of (a) such time as the Loans have been repaid in full and (b) Oaktree beneficially own, in the aggregate, warrants, shares
of Common Stock of the Company, or common units of limited partnership interests in the Company (&ldquo;Common Partnership Units&rdquo;),
in each case solely to the extent issued in connection with the payment of the Exit Fee, representing (or convertible, exchangeable,
redeemable or exercisable into) less than fifteen percent (15%) of the total number of shares of Common Stock on a fully diluted basis,
Oaktree shall have the right to appoint two (2) observers to the Board, subject to certain limitations as more fully described in the
Investor Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Standstill</I>. The Investor
Agreement includes customary standstill provisions which require that, until the later of (a) such time as the Loans have been repaid
in full and the Exit Fee has been paid and (b) Oaktree beneficially owns, in the aggregate, warrants, shares of Common Stock, or Common
Partnership Units, representing (or convertible, exchangeable, redeemable or exercisable into) less than ten percent (10%) of the total
number of shares of Common Stock on a fully diluted basis, Oaktree will not at any time, nor will they cause or permit any of their affiliates
(other than certain excluded affiliates) to (i) acquire shares of Common Stock or securities convertible, exchangeable, redeemable or
exercisable into shares of Common Stock or (ii) take certain actions related to, or advise, assist or encourage others to take actions
related to, mergers, tender offers, exchange offers, business combinations, restructurings or other extraordinary transactions, and will
refrain from taking certain actions related to the calling of meetings, solicitation of proxies, making of proposals or director nominations
and other actions of stockholders. The standstill provisions shall terminate thirty (30) days following an uncured event of default under
the Original Credit Agreement or upon the occurrence of a Fundamental Change Event (as defined in the Investor Agreement).</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Voting</I>. During the
period Oaktree has the right to appoint observers to the Board, they shall cause all shares of Common Stock held to be voted, or following
the date Oaktree ceases having the right to appoint observers to the Board, they shall cause all shares of Common Stock that represent
in excess of nine and eight-tenths percent (9.8%) of the outstanding shares of Common Stock of the Company to be voted, in each case,
(x) in favor of all persons nominated to serve as directors by the Board and against all persons who have not been recommended by the
Board and (y) otherwise in accordance with the recommendation of the Board with respect to all other actions, proposals or matters to
be voted upon by the stockholders of the Company. The voting agreements shall terminate thirty (30) days following an uncured event of
default under the Original Credit Agreement or upon the occurrence of a Fundamental Change Event.</P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<DIV STYLE="padding: 10pt; border: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Anti-Takeover
                                            Covenants</I>. Until the later of (a) such time as the Loans have been repaid in full and
                                            (b) Oaktree beneficially owns, in the aggregate, warrants, shares of Common Stock, or Common
                                            Partnership Units, representing (or convertible, exchangeable, redeemable or exercisable
                                            into) less than ten percent (10%) of the total number of shares of Common Stock on a fully
                                            diluted basis, the Company will not adopt a stockholders rights plan or similar form of &ldquo;poison
                                            pill&rdquo; arrangement or elect or cause the Company to be subject to any applicable state
                                            anti-takeover law, in each case except to the extent Oaktree and their affiliates are expressly
                                            exempted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Preemptive Rights</I>.
The Investor Agreement provides Oaktree with a preemptive right in the event that the Company issues and sells shares of Common Stock
in certain public offerings and private placements, as more fully described in the Investor Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Subordination and Non-Disturbance Agreement</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In connection with the transactions
contemplated by the Original Credit Agreement, on January 15, 2021, the Company entered into a Subordination and Non-Disturbance Agreement
(the &ldquo;SNDA&rdquo;) with Ashford Trust OP, Ashford TRS, Ashford Inc., Ashford LLC, Remington Hotels, Premier Project Management,
LLC (&ldquo;Premier&rdquo;), Lismore and the Administrative Agent pursuant to which the applicable parties agreed to subordinate to the
prior repayment in full of all obligations under the Original Credit Agreement, (1) prior to the later of (i) the second anniversary
of the Original Credit Agreement and (ii) the date PIK Interest is paid in full, advisory fees (other than reimbursable expenses) in
excess of 80% of such fees paid during the fiscal year ended December 31, 2019, (2) any termination fee or liquidated damages amounts
under the advisory agreement, or any amount owed under any enhanced return funding program in connection with the termination of the
advisory agreement or sale or foreclosure of assets financed thereunder, and (3) any payments to Lismore in connection with the transactions
contemplated by the Credit Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Amendment No. 1 to the Credit Agreement</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">On October 12, 2021, the
Company and Ashford Trust OP entered into Amendment No. 1 to the Credit Agreement (Original Credit Agreement, as amended thereby, the
 &ldquo;Credit Agreement&rdquo;) with certain funds and accounts managed by Oaktree and the Administrative Agent which, among other items,
(i) extends the commitment period of the Initial DDTL and Additional DDTL from thirty months to forty-two months after the initial closing
date of the Credit Agreement, if the Initial Term Loans are repaid in full prior to the expiration of such commitment period (the &ldquo;DDTL
Commitment Period&rdquo;), (ii) suspends our obligations to comply with certain covenants during the DDTL Commitment Period if at any
point there are no loans or accrued interest thereon are outstanding, (iii)&nbsp;suspends our obligation to subordinate fees due under
the Advisory Agreement if at any point there is no accrued interest outstanding or any accrued dividends on any of our preferred stock
and we have a sufficient unrestricted cash to repay in full all outstanding Loans, (iv)&nbsp;permits Oaktree to, at any time, elect to
receive an Exit Fee in warrants for the purchase of Common Stock equal to 19.9% of all Common Stock outstanding on the closing date of
the senior secured credit facility subject to certain upward or downward adjustments, and (v) provides that in the event prior to the
termination of the facility, Oaktree elects to receive the Exit Fee in warrants and any of such warrants are sold at a price per share
of Common Stock in excess of $40, all obligations owed to Oaktree shall be reduced by an amount equal to 25% of the amount of such excess
consideration, subject to certain adjustments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In connection with the Credit
Agreement and in the event Oaktree elects to receive the Exit Fee in warrants, the Company will issue to Oaktree warrants to purchase
1,745,260 shares of our Common Stock, which represents 19.9% of all Common Stock outstanding on the closing date of the Credit Agreement
(calculated on a pro forma basis after giving effect to the issuance of such shares of common stock upon exercise of the warrants). The
certificate representing such warrants (the &ldquo;Warrant Certificate&rdquo;) agreed to by the parties provides for customary adjustments
in the event of certain distributions, subdivisions, combinations and other issuances by the Company. The Warrant Certificate also provides
for adjustments to the number of shares which such warrants are purchasable for, subject to the terms and conditions set forth in the
Credit Agreement and Warrant Certificate, (i) downward in the event certain of the Company&rsquo;s subsidiaries effect a pledge of the
equity interests of certain property-level subsidiaries and (ii) upward in the event Oaktree advance additional DDTLs to the Company.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Prior to the issuance of
the warrants, the Company and Oaktree will also enter into a registration rights agreement (the &ldquo;Registration Rights Agreement&rdquo;)
pursuant to which, among other items, the Company will agree to maintain the effectiveness of this registration statement.</P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-transform: uppercase; text-align: center"><A NAME="y_004"></A>Securities
Offered</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; width: 49%; text-align: left">Common Stock to be offered
    by the selling stockholder:</TD><TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; width: 2%; text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; width: 49%; text-align: left">1,745,260 shares of Common
    Stock</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: left">Common Stock outstanding prior to this
    offering</TD><TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: left">33,398,492 shares</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: left">Common Stock to be outstanding after
    this offering</TD><TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">35,143,752 shares (based on 33,398,492
    shares of Common Stock outstanding as of October 18, 2021, and assuming full exercise of the shares underlying the warrants listed
    in this offering)</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: left">Use of proceeds</TD><TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">We will receive no proceeds from the
    sale of shares of Common Stock by Oaktree in this offering. In the event that Oaktree elects to receive the Exit Fee in warrants
    and any of such warrants are sold at a price per share of Common Stock in excess of $40.00, all obligations owed by us to Oaktree
    under the Credit Agreement shall be reduced by an amount equal to 25% of the amount of such excess consideration, subject to certain
    adjustments.</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: left">Risk factors</TD><TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">This investment involves a high degree
    of risk. See &ldquo;Risk Factors&rdquo; for a discussion of factors you should consider carefully before making an investment decision.</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: left">Symbol on the NYSE</TD><TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: left">&ldquo;AHT&rdquo;</TD></TR>
  </TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

</DIV>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-transform: uppercase; text-align: center"><A NAME="y_005"></A>RISK
FACTORS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><I>An investment in our
Common Stock involves risks. In addition to other information included or incorporated by reference in this prospectus, you should carefully
consider the following risks before investing in our Common Stock. The occurrence of any of the following risks could materially and
adversely affect our business, prospects, financial condition, results of operations and our ability to make cash distributions to our
stockholders, which could cause you to lose all or a significant portion of your investment in our Common Stock. Some statements included
or incorporated by reference in this prospectus, including statements in the following risk factors, constitute forward-looking statements.
See &ldquo;Cautionary Note Regarding Forward-Looking Statements.&rdquo;</I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-align: justify; text-indent: -0.1in">Risks Related
to the Offering</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><B><I>Future sales of our Common Stock or other
securities convertible into our Common Stock could cause the market value of our Common Stock to decline and could result in dilution
of your shares.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our Board is authorized,
without approval of our stockholders, to cause us to issue additional shares of our stock or to raise capital through the issuance of
preferred stock, options, warrants and other rights on terms and for consideration as our Board in its sole discretion may determine.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Pursuant to the Registration
Rights Agreement, we will be required to, among other things, prepare and file with the SEC such amendments, post-effective amendments
and supplements to this registration statement and the prospectus used in connection therewith as may be necessary to cause or maintain
the effectiveness of this registration statement for so long as the Registrable Securities (as defined in the Registration Rights Agreement)
remain unsold, and, upon the written request of a selling stockholder, the Company shall as soon as reasonably practicable amend or supplement
the prospectus relating to this registration statement to facilitate a &ldquo;take down&rdquo; as may be reasonably requested by such
selling stockholder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Sales of substantial amounts
of our Common Stock could dilute your ownership and could cause the market price of our Common Stock to decrease significantly. We cannot
predict the effect, if any, of future sales of our Common Stock, or the availability of our Common Stock for future sales, on the value
of our Common Stock. Sales of substantial amounts of our Common Stock, or the perception that such sales could occur, may adversely affect
the market price of our Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We may borrow additional amounts under
the Credit Agreement which may increase the amount of the Exit Fee.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Subject to the terms and
conditions of the Credit Agreement, we may, borrow additional amounts of up to $250,000,000 subject to certain conditions. See the Risk
Factor entitled &ldquo;We have a significant amount of debt, and our organizational documents have no limitation on the amount of additional
indebtedness that we may incur in the future&rdquo; for additional information on risks related to our borrowing capacity under the Credit
Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Additionally, subject to
the terms and conditions of the Credit Agreement, Oaktree may elect to have a future Exit Fee (as defined in the Credit Agreement) satisfied
in cash. In such event, we may elect to pay all or a portion of such Exit Fee in the form of shares of our Common Stock. The aggregate
size of the Exit Fee and the price per share for the shares of our Common Stock at the time payment of any such Exit Fee is required
are not currently known. Accordingly, it is not currently possible to predict the number of shares that may be issued to Oaktree, if
any.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The extent to which we satisfy
all or any portion of a future Exit Fee in the form of shares of our Common Stock will depend on a number of factors including, the prevailing
market price of our Common Stock and the extent to which we are able to secure working capital from other sources.&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Future sales and issuances of our Common
Stock or other securities might result in significant dilution and could cause the price of our Common Stock to decline.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">To raise capital, we may
sell Common Stock, convertible securities or other equity securities in one or more transactions, at prices and in a manner we determine
from time to time. We may sell shares or other securities in any other offering at a price per share that is less than the price per
share paid by investors in this offering, and investors purchasing shares or other securities in the future could have rights superior
to existing stockholders. The price per share at which we sell additional shares of our common stock, or securities convertible or exchangeable
into common stock, in future transactions may be higher or lower than the price per share paid by investors in this offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We cannot predict what effect,
if any, sales of shares of our Common Stock in the public market or the availability of shares for sale will have on the market price
of our Common Stock. However, future sales of substantial amounts of our Common Stock in the public market, including shares issued upon
exercise of outstanding options, or the perception that such sales may occur, could adversely affect the market price of our Common Stock.</P>

<P STYLE="text-align: justify; font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Risks Related
to Our Business</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>A financial crisis, economic slowdown,
pandemic, or epidemic or other economically disruptive event may harm the operating performance of the hotel industry generally. If such
events occur, we may be harmed by declines in occupancy, average daily room rates and/or other operating revenues.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The performance of the lodging
industry has been closely linked with the performance of the general economy and, specifically, growth in the U.S. gross domestic product.
A majority of our hotels are classified as upscale and upper upscale. In an economic downturn, these types of hotels may be more susceptible
to a decrease in revenue, as compared to hotels in other categories that have lower room rates. This characteristic may result from the
fact that upscale and upper upscale hotels generally target business and high-end leisure travelers. In periods of economic difficulties
or concerns with respect to communicable disease, business and leisure travelers may seek to reduce travel costs and/or health risks
by limiting travel or seeking to reduce costs on their trips. Any economic recession will likely have an adverse effect on us. Our business
has been and will continue to be materially adversely affected by the impact of the COVID-19 pandemic, see&nbsp;&ldquo;The outbreak of
COVID-19 has and will continue to significantly reduce our occupancy rates and RevPAR.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The hotel industry is highly competitive
and the hotels in which we invest are subject to competition from other hotels for guests.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The hotel business is highly
competitive. Our hotel properties will compete on the basis of location, brand, room rates, quality, amenities, reputation and reservations
systems, among many factors. There are many competitors in the hotel industry, and many of these competitors may have substantially greater
marketing and financial resources than we have. This competition could reduce occupancy levels and rooms revenue at our hotels. Over-building
in the lodging industry may increase the number of rooms available and may decrease occupancy and room rates. In addition, in periods
of weak demand, as may occur during a general economic recession, profitability is negatively affected by the fixed costs of operating
hotels. We also face competition from services such as home sharing companies and apartment operators offering short-term rentals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We have not paid dividends on our Common
Stock or Preferred Stock in fiscal year 2020 or the first, second or third quarter of 2021. We do not expect to pay dividends on our
Common Stock for the foreseeable future.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We have not paid dividends
on our Common Stock or Preferred Stock in fiscal year 2020 or in the first, second or third quarter of 2021. We do not expect to pay
dividends on our Common Stock for the foreseeable future, particularly in light of the downturn in our business occasioned by the COVID-19
pandemic and the demands of our property-level lenders, some of with whom we are currently negotiating forbearance agreements in light
of our failure to make interest and principal payments starting in April 2020. The Board decides each quarter whether to pay dividends
on our Preferred Stock, based on a variety of factors. On December 8, 2020, the Board reviewed and approved our 2021 dividend policy
and on December 11, 2020 announced that the Company does not anticipate paying any dividends on its outstanding Common Stock and Preferred
Stock for any quarter ending during 2021. The Board will continue to review our dividend policy and make future announcements with respect
thereto.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">No dividends can be paid
on the Common Stock unless and until all accumulated and unpaid dividends on our outstanding Preferred Stock have been declared and paid.
As of October 18, 2021, the total accumulated unpaid dividend on the outstanding Preferred Stock was approximately $19.3 million. Additionally,
under Maryland law and except for an ability to pay a dividend out of current earnings in certain limited circumstances, no dividend
may be declared or paid by a Maryland corporation unless, after giving effect to the dividend, assets will continue to exceed liabilities
and the corporation will be able to continue to pay its debts as they become due in the usual course. As of June 30, 2021, the Company
had a deficit in stockholders&rsquo; equity of approximately $83.2 million and had not generated current earnings from which a dividend
is potentially payable since the year ended December 31, 2015. For these and other reasons, there is no expectation that a dividend on
Common Stock can or would be considered or declared at any time in the foreseeable future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We currently do not have an effective Form
S-3, which may impair our capital raising activities.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">As a result of our recent
payment defaults under our mortgage loans with our property level lenders, which occurred beginning on April&nbsp;1, 2020, and our failure
to pay dividends to the holders of our Preferred Stock during the second, third and fourth quarters of 2020, we are not eligible to file
a new Form&nbsp;S-3. Our previous Form S-3 expired in September&nbsp;2020 and thus we do not have an effective Form&nbsp;S-3, which may
impair our capital raising activities. Since we did not pay dividends that were in arrears for the first or second quarter of 2021 to
our holders of Preferred Stock by June 30, 2021, we will remain ineligible to file a new Form S-3 which may impair our capital raising
ability. We have relied on shelf registration statements on Form S-3 for our financings in recent years, and accordingly any such limitations
may harm our ability to raise the capital we need. Under these circumstances, if we remain ineligible to use Form S-3, we will be required
to use a registration statement on Form S-11 to register securities with the SEC, which would hinder our ability to act as quickly in
raising capital to take advantage of market conditions in our capital raising activities and would increase our cost of raising capital.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Because we depend upon our advisor and
its affiliates to conduct our operations, any adverse changes in the financial condition of our advisor or its affiliates or our relationship
with them could hinder our operating performance.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We depend on our advisor
or its affiliates to manage our assets and operations. Any adverse changes in the financial condition of our advisor or its affiliates
or our relationship with them could hinder their ability to manage us and our operations successfully.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We depend on our advisor&rsquo;s key personnel
with longstanding business relationships. The loss of our advisor&rsquo;s key personnel could threaten our ability to operate our business
successfully.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our future success depends,
to a significant extent, upon the continued services of our advisor&rsquo;s management team and the extent and nature of the relationships
they have developed with hotel franchisors, operators, and owners and hotel lending and other financial institutions. The loss of services
of one or more members of our advisor&rsquo;s management team could harm our business and our prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We do not have any employees, and rely
on our hotel managers to employ the personnel required to operate the hotels we own. As a result, we have less ability in the COVID-19
environment to reduce staffing at our hotels than we would if we employed such personnel directly.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We do not have any employees.
We contractually engage hotel managers, such as Marriott, Hilton, Hyatt and our affiliate, Remington Hotels, which is owned by Ashford
Inc., to operate, and to employ the personnel required to operate, our hotels. The hotel manager is required under the applicable hotel
management agreement to determine appropriate staffing levels; we are required to reimburse the applicable hotel manager for the cost
of these employees. As a result, we are dependent and our hotel managers to make appropriate staffing decisions and to appropriately
reduce staffing when market conditions are poor, and have less ability in the COVID-19 environment to reduce staffing at our hotels than
we would if we employed such personnel directly. As a result, our hotels may be staffed at a level higher than we would choose if we
employed the personnel required to operate the hotels. In addition, we may be less likely to take aggressive actions (such as delaying
payments owed to our hotel managers) in order to influence the staffing decisions made by Remington Hotels, which is our affiliate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We are required to make minimum base management
fee payments to our advisor, Ashford Inc., under our Advisory Agreement, which must be paid even if our total market capitalization and
performance decline. Similarly, we are required to make minimum base hotel management fee payments under our hotel management agreements
with Remington Hotels, a subsidiary of Ashford Inc., which must be paid even if revenues at our hotels decline significantly.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Pursuant to the Advisory
Agreement between us and our advisor, we must pay our advisor on a monthly basis a base management fee (based on our total market capitalization,
performance and the amount of sold assets), subject to a minimum base management fee. The minimum base management fee is equal to the
greater of: (i)&nbsp;90% of the base fee paid for the same month in the prior fiscal year; and (ii) 1/12th of the &ldquo;G&amp;A Ratio&rdquo;
for the most recently completed fiscal quarter multiplied by our total market capitalization on the last balance sheet date included
in the most recent quarterly report on Form 10-Q or annual report on Form 10-K that we file with the SEC. Thus, even if our total market
capitalization and performance decline, including as a result of the impact of COVID-19, we will still be required to make monthly payments
to our advisor equal to the minimum base management fee (which we expect will equal 90% of the base fee paid for the same month in the
prior fiscal year), which could adversely impact our liquidity and financial condition. As described further in our filings with the
SEC, the independent members of the board of directors of Ashford Inc. provided the Company a deferral on the payment of certain fees
and expenses with respect to the months of October&nbsp;2020, November&nbsp;2020, December&nbsp;2020 and January&nbsp;2021 payable under
the Advisory Agreement such that all such fees would be due and payable on the earlier of (x)&nbsp;January&nbsp;18, 2021 and (y)&nbsp;immediately
prior to the closing of the Credit Agreement. The foregoing payment was due and payable on January 11, 2021. Additionally, the independent
members of the board of directors of Ashford Inc. waived any claim against the Company and the Company&rsquo;s affiliates and each of
their officers and directors for breach of the Advisory Agreement or any damages that may have arisen in absence of such fee deferral.
In accordance with the terms of the previously disclosed deferrals, Ashford Trust paid Ashford Inc. $14,411,432 immediately prior to
the closing of the Credit Agreement. There can be no assurances that Ashford Inc. will grant similar deferrals in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Similarly, pursuant to our
hotel management agreement with Remington Hotels, a subsidiary of Ashford Inc., we pay Remington Hotels monthly base hotel management
fees on a per hotel basis equal to the greater of approximately $14,000 (increased annually based on consumer price index adjustments)
or 3% of gross revenues. As a result, even if revenues at our hotels decline significantly, we will still be required to make minimum
monthly payments to Remington Hotels equal to approximately $14,000 per hotel (increased annually based on consumer price index adjustments),
which could adversely impact our liquidity and financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our joint venture investments could be
adversely affected by our lack of sole decision-making authority, our reliance on a co-venturer&rsquo;s financial condition and disputes
between us and our co-venturers.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We have in the past and
may continue to co-invest with third parties through partnerships, joint ventures or other entities, acquiring controlling or non-controlling
interests in, or sharing responsibility for, managing the affairs of a property, partnership, joint venture or other entity. In such
event, we may not be in a position to exercise sole decision-making authority regarding the property, partnership, joint venture or other
entity. Investments in partnerships, joint ventures or other entities may, under certain circumstances, involve risks not present were
a third party not involved, including the possibility that partners or co-venturers might become bankrupt, suffer a deterioration in
their financial condition or fail to fund their share of required capital contributions. Partners or co-venturers may have economic or
other business interests or goals which are inconsistent with our business interests or goals, and may be in a position to take actions
contrary to our policies or objectives. Such investments may also have the potential risk of impasses on decisions, such as a sale, budgets,
or financing, if neither we nor the partner or co-venturer has full control over the partnership or joint venture. Disputes between us
and partners or co-venturers may result in litigation or arbitration that would increase our expenses and prevent our officers or directors
from focusing their time and effort on our business. Consequently, actions by, or disputes with, partners or co-venturers might result
in subjecting properties owned by the partnership or joint venture to additional risk. In addition, we may in certain circumstances be
liable for the actions of our third-party partners or co-venturers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our business strategy depends on our continued
growth. We may fail to integrate recent and additional investments into our operations or otherwise manage our future growth, which may
adversely affect our operating results.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We cannot assure you that
we will be able to adapt our management, administrative, accounting, and operational systems, or our advisor will be able to hire and
retain sufficient operational staff to successfully integrate and manage any future acquisitions of additional assets without operating
disruptions or unanticipated costs. Acquisitions of any property or additional portfolios of properties could generate additional operating
expenses for us. Any future acquisitions may also require us to enter into property improvement plans that will increase our use of cash
and could disrupt performance. As we acquire additional assets, we will be subject to the operational risks associated with owning those
assets. Our failure to successfully integrate any future acquisitions into our portfolio could have a material adverse effect on our
results of operations and financial condition and our ability to pay dividends to our stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Because the Board and our
advisor have broad discretion to make future investments, we may make investments that result in returns that are substantially below
expectations or that result in net operating losses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Board and our advisor
have broad discretion, within the investment criteria established by the Board, to make additional investments and to determine the timing
of such investments. In addition, our investment policies may be revised from time to time at the discretion of the Board, without a
vote of our stockholders, including with respect to our dividend policies on our Common Stock and Preferred Stock. Such discretion could
result in investments with returns inconsistent with expectations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Hotel franchise or license requirements
or the loss of a franchise could adversely affect us.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We must comply with operating
standards, terms, and conditions imposed by the franchisors of the hotel brands under which our hotels operate. Franchisors periodically
inspect their licensed hotels to confirm adherence to their operating standards. The failure of a hotel to maintain standards could result
in the loss or cancellation of a franchise license. With respect to operational standards, we rely on our hotel managers to conform to
such standards. At times we may not be in compliance with such standards. Franchisors may also require us to make certain capital improvements
to maintain the hotel in accordance with system standards, the cost of which can be substantial. It is possible that a franchisor could
condition the continuation of a franchise based on the completion of capital improvements that our advisor or board of directors determines
is not economically feasible in light of general economic conditions, the operating results or prospects of the affected hotel or other
circumstances. In that event, our advisor or board of directors may elect to allow the franchise to lapse or be terminated, which could
result in a termination charge as well as a change in brand franchising or operation of the hotel as an independent hotel. In addition,
when the term of a franchise expires, the franchisor has no obligation to issue a new franchise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The loss of a franchise
could have a material adverse effect on the operations and/or the underlying value of the affected hotel because of the loss of associated
name recognition, marketing support and centralized reservation systems provided by the franchisor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We may be unable to identify additional
investments that meet our investment criteria or to acquire the properties we have under contract.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We cannot assure you that
we will be able to identify real estate investments that meet our investment criteria, that we will be successful in completing any investment
we identify, or that any investment we complete will produce a return on our investment. Moreover, we have broad authority to invest
in any real estate investments that we may identify in the future. We also cannot assure you that we will acquire properties we currently
have under firm purchase contracts, if any, or that the acquisition terms we have negotiated will not change.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our investments are concentrated in particular
segments of a single industry.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Nearly all of our business
is hotel related. Our current strategy is predominantly to acquire upper upscale hotels, as well as when conditions are favorable to
acquire first mortgages on hotel properties, invest in other mortgage-related instruments such as mezzanine loans to hotel owners and
operators, and participate in hotel sale-leaseback transactions. Adverse conditions in the hotel industry, including as a result of COVID-19,
will have a material adverse effect on our operating and investment revenues and cash available for distribution to our stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our reliance on Remington Hotels, a subsidiary of Ashford Inc.,
and on third party hotel managers to operate our hotels and for a substantial majority of our cash flow may adversely affect us.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Because U.S. federal income
tax laws restrict REITs and their subsidiaries from operating or managing hotels, third parties must operate our hotels. A REIT may lease
its hotels to taxable REIT subsidiaries in which the REIT can own up to a 100% interest. A taxable REIT subsidiary (&ldquo;TRS&rdquo;)
pays corporate-level income tax and may retain any after-tax income. A REIT must satisfy certain conditions to use the TRS structure.
One of those conditions is that the TRS must hire, to manage the hotels, an &ldquo;eligible independent contractor&rdquo; &#8203;(&ldquo;EIC&rdquo;)
that is actively engaged in the trade or business of managing hotels for parties other than the REIT. An EIC cannot (i)&nbsp;own more
than 35% of the REIT, (ii)&nbsp;be owned more than 35% by persons owning more than 35% of the REIT, or (iii)&nbsp;provide any income
to the REIT (<I>i.e.</I>, the EIC cannot pay fees to the REIT, and the REIT cannot own any debt or equity securities of the EIC). Accordingly,
while we may lease hotels to a TRS that we own, the TRS must engage a third-party operator to manage the hotels. Thus, our ability to
direct and control how our hotels are operated is less than if we were able to manage our hotels directly.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We have entered into management
agreements with Remington Hotels, a subsidiary of Ashford Inc., to manage 68 of our 100 hotel properties and the WorldQuest condominium
properties as of June 30, 2021. We have hired unaffiliated third-party hotel managers to manage our remaining properties. We do not supervise
any of the hotel managers or their respective personnel on a day-to-day basis, and we cannot assure you that the hotel managers will
manage our properties in a manner that is consistent with their respective obligations under the applicable management agreement or our
obligations under our hotel franchise agreements. We also cannot assure you that our hotel managers will not be negligent in their performance,
will not engage in criminal or fraudulent activity, or will not otherwise default on their respective management obligations to us. If
any of the foregoing occurs, our relationships with any franchisors may be damaged, we may be in breach of our franchise agreement, and
we could incur liabilities resulting from loss or injury to our property or to persons at our properties. In addition, from time to time,
disputes may arise between us and our third-party managers regarding their performance or compliance with the terms of the hotel management
agreements, which in turn could adversely affect us. We generally will attempt to resolve any such disputes through discussions and negotiations;
however, if we are unable to reach satisfactory results through discussions and negotiations, we may choose to terminate our management
agreement, litigate the dispute or submit the matter to third-party dispute resolution, the expense of which may be material and the
outcome of which may adversely affect us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our cash flow from the hotels
may be adversely affected if our managers fail to provide quality services and amenities or if they or their affiliates fail to maintain
a quality brand name. In addition, our managers or their affiliates may manage, and in some cases may own, invest in or provide credit
support or operating guarantees, to hotels that compete with hotel properties that we own or acquire, which may result in conflicts of
interest and decisions regarding the operation of our hotels that are not in our best interests. Any of these circumstances could adversely
affect us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our management agreements could adversely
affect our sale or financing of hotel properties.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We have entered into management
agreements, and acquired properties subject to management agreements, that do not allow us to replace hotel managers on relatively short
notice or with limited cost or contain other restrictive covenants, and we may enter into additional such agreements or acquire properties
subject to such agreements in the future. For example, the terms of a management agreement may restrict our ability to sell a property
unless the purchaser is not a competitor of the manager, assumes the management agreement and meets other conditions. Also, the terms
of a long-term management agreement encumbering our property may reduce the value of the property. When we enter into or acquire properties
subject to any such management agreements, we may be precluded from taking actions in our best interest and could incur substantial expense
as a result of the agreements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>If we cannot obtain additional capital,
our growth will be limited.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We are required to distribute
to our stockholders at least 90% of our REIT taxable income, excluding net capital gains, each year to maintain our qualification as
a REIT. As a result, our retained earnings available to fund acquisitions, development, or other capital expenditures are nominal. As
such, we rely upon the availability of additional debt or equity capital to fund these activities. Our long-term ability to grow through
acquisitions or development, which is an important strategy for us, will be limited if we cannot obtain additional financing or equity
capital. Market conditions may make it difficult to obtain financing or equity capital, and we cannot assure you that we will be able
to obtain additional debt or equity financing or that we will be able to obtain it on favorable terms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>In light of the downturn of our business
and Ashford Inc.&rsquo;s business occasioned by COVID-19, we may not realize the anticipated benefits of the Enhanced Return Funding
Program.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">On June&nbsp;26, 2018, we
entered into the Enhanced Return Funding Program Agreement and Amendment No. 1 to the Amended and Restated Advisory Agreement (the &ldquo;ERFP
Agreement&rdquo;) with Ashford Inc. and Ashford LLC, which generally provides that Ashford LLC will provide funding to facilitate the
acquisition of properties by us that are recommended by Ashford LLC, in an aggregate amount of up to $50&nbsp;million (subject to increase
to up to $100&nbsp;million by mutual agreement).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In light of the downturn
of our business and Ashford Inc.&rsquo;s business occasioned by COVID-19, we may not realize the anticipated benefits of the ERFP Agreement.
On April&nbsp;20, 2021, we delivered written notice of our intention not to renew the ERFP Agreement. As a result, the ERFP Agreement
terminated in accordance with its terms on June&nbsp;26, 2021. We continue to be entitled to receive an additional $11.4&nbsp;million
in payments from Ashford LLC with respect to our purchase of the Embassy Suites New York Manhattan Times Square in 2019. On March&nbsp;13,
2020, an extension agreement was entered into whereby the due date for such payment was extended to December&nbsp;31, 2022. Additionally,
on November&nbsp;25, 2020, in exchange for the waiver of certain fees and expenses under certain of the Company&rsquo;s agreements with
Ashford Inc. and Lismore Capital II LLC (&ldquo;Lismore&rdquo;), a subsidiary of Ashford Inc., the Company granted Ashford Inc. the right
to set-off such payment against the fees that have been or may be deferred by Ashford Inc. It is uncertain whether Ashford LLC will be
able to make this payment and, if such payment is made, the timing of such payment. Furthermore, if Ashford Inc. and Ashford LLC do not
fulfill their contractual obligations pursuant to the ERFP Agreement, we may choose not to enforce, or to enforce less vigorously, our
rights because of our desire to maintain our ongoing relationship with Ashford Inc. and Ashford LLC, and legal action against either
party could negatively impact that relationship.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Additionally, under the
terms of the Advisory Agreement, we are required on a going forward basis to pay an asset management fee to our advisor, Ashford Inc.,
with respect to any hotel purchased with money funded pursuant to the ERFP Agreement, even after such hotel is disposed of, including
as a result of foreclosure. As a result, if any hotel purchased with funds provided pursuant to the ERFP Agreement is foreclosed upon
or otherwise disposed of, including the Embassy Suites New York Manhattan Times Square or the Hilton Scotts Valley hotel in Santa Cruz,
California (the property level secured debt of which is in default and has been accelerated by the lender), we will still be obligated
to pay Ashford Inc. an asset management fee as if we continued to own the hotels. Additionally, we would be required to replace the furniture,
fixtures and equipment (&ldquo;FF&amp;E&rdquo;) we had previously sold to Ashford Inc. in any hotel that was foreclosed upon with new
FF&amp;E from a different hotel. These obligations will continue after expiration of the ERFP Agreement although additional hotels will
not be purchased pursuant to the ERFP Agreement after June&nbsp;26, 2021. On August&nbsp;21, 2020, we announced that the Embassy Suites
New York Manhattan Times Square was sold subject to the loan and the proceeds of the sale were used to repay the mezzanine loans for
the properties. On November&nbsp;5, 2020, the independent members of the board of directors of Ashford Inc. waived the requirement of
the Company to provide replacement FF&amp;E.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We compete with other hotels for guests
and face competition for acquisitions and sales of hotel properties and of desirable debt investments.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The hotel business is competitive.
Our hotels compete on the basis of location, room rates, quality, service levels, amenities, loyalty programs, reputation and reservation
systems, among many other factors. New hotels may be constructed and these additions to supply create new competitors, in some cases
without corresponding increases in demand for hotel rooms. The result in some cases may be lower revenue, which would result in lower
cash available to meet debt service obligations, operating expenses and requisite distributions to our stockholders. We compete for hotel
acquisitions with entities that have similar investment objectives as we do. This competition could limit the number of suitable investment
opportunities offered to us. It may also increase the bargaining power of property owners seeking to sell to us, making it more difficult
for us to acquire new properties on attractive terms or on the terms contemplated in our business plan. In addition, we compete to sell
hotel properties. Availability of capital, the number of hotels available for sale and market conditions all affect prices. We may not
be able to sell hotel assets at our targeted price. We may also compete for mortgage asset investments with numerous public and private
real estate investment vehicles, such as mortgage banks, pension funds, other REITs, institutional investors, and individuals. Mortgages
and other investments are often obtained through a competitive bidding process. In addition, competitors may seek to establish relationships
with the financial institutions and other firms from which we intend to purchase such assets. Competition may result in higher prices
for mortgage assets, lower yields, and a narrower spread of yields over our borrowing costs. Some of our competitors are larger than
us, may have access to greater capital, marketing, and other financial resources, may have personnel with more experience than our officers,
may be able to accept higher levels of debt or otherwise may tolerate more risk than us, may have better relations with hotel franchisors,
sellers or lenders, and may have other advantages over us in conducting certain business and providing certain services.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We face risks related to changes in the
domestic and global political and economic environment, including capital and credit markets.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our business may be impacted
by domestic and global economic conditions. Political crises in the U.S. and other international countries or regions, including sovereign
risk related to a deterioration in the credit worthiness or a default by local governments, may negatively affect global economic conditions
and our business. If the U.S. or global economy experiences volatility or significant disruptions, such disruptions or volatility could
hurt the U.S. economy and our business could be negatively impacted by reduced demand for business and leisure travel related to a slowdown
in the general economy, by disruptions resulting from credit markets, higher operating costs and by liquidity issues resulting from an
inability to access credit markets to obtain cash to support operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We are increasingly dependent on information
technology, and potential cyber-attacks, security problems or other disruption and expanding social media vehicles present new risks.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our advisor and our various
hotel managers rely on information technology networks and systems, including the Internet, to process, transmit and store electronic
information, and to manage or support a variety of business processes, including financial transactions and records, personal identifying
information, reservations, billing and operating data. Our advisor and our hotel managers purchase some of our information technology
from vendors, on whom our systems depend, and our advisor relies on commercially available systems, software, tools and monitoring to
provide security for processing, transmission and storage of confidential operator and other customer information, such as individually
identifiable information, including information relating to financial accounts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We often depend upon the
secure transmission of this information over public networks. Our advisor&rsquo;s and our hotel managers&rsquo; networks and storage
applications may be subject to unauthorized access by hackers or others (through cyber-attacks, which are rapidly evolving and becoming
increasingly sophisticated, or by other means) or may be breached due to operator error, malfeasance or other system disruptions. In
some cases, it is difficult to anticipate or immediately detect such incidents and the damage caused thereby. Any significant breakdown,
invasion, destruction, interruption or leakage of our advisor&rsquo;s or our hotel managers&rsquo; systems could harm us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In addition, the use of
social media could cause us to suffer brand damage or information leakage. Negative posts or comments about us, our hotel managers or
our hotels on any social networking website could damage our or our hotels&rsquo; reputations. In addition, employees or others might
disclose non-public sensitive information relating to our business through external media channels. The continuing evolution of social
media will present us with new challenges and risks.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Changes in laws, regulations, or policies
may adversely affect our business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The laws and regulations
governing our business or the regulatory or enforcement environment at the federal level or in any of the states in which we operate
may change at any time and may have an adverse effect on our business. We are unable to predict how this or any other future legislative
or regulatory proposals or programs will be administered or implemented or in what form, or whether any additional or similar changes
to statutes or regulations, including the interpretation or implementation thereof, will occur in the future. Any such action could affect
us in substantial and unpredictable ways and could have an adverse effect on our results of operations and financial condition. Our inability
to remain in compliance with regulatory requirements in a particular jurisdiction could have a material adverse effect on our operations
in that market and on our reputation generally. No assurance can be given that applicable laws or regulations will not be amended or
construed differently or that new laws and regulations will not be adopted, either of which could materially adversely affect our business,
financial condition or results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We identified a material weakness in our
internal controls over financial reporting that existed for the period ended September&nbsp;30, 2020. The Company designed a new control
whereby management will engage a third-party accounting expert to assist management in assessing the accounting for similar transactions
in its consolidated financial statements. The Company entered into similarly complex transactions during the fourth quarter of 2020,
and therefore it was possible for the Company to test and conclude the new control was designed and operating effectively as of December&nbsp;31,
2020. As a result, the material weakness was remediated as of December&nbsp;31, 2020. If we fail to properly identify or remediate any
future weaknesses or deficiencies, or achieve and maintain effective internal control, our ability to produce accurate and timely financial
statements or comply with applicable laws and regulations could be impaired and investors could lose confidence in our financial statements.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Internal control over financial
reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation
of financial statements in accordance with GAAP. As discussed in our Quarterly Report on Form 10-Q for the quarterly period ended September&nbsp;30,
2020, we became aware of a deficiency in the operating effectiveness of our controls that led to a misstatement in our consolidated financial
statements related to the accounting for troubled debt restructurings. We have corrected the misstatement; however, the lack of proper
controls resulted in a material weakness in internal control over financial reporting for the period ended September&nbsp;30, 2020, as
defined in Public Company Accounting Oversight Board Auditing Standard No. 2201.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">There can be no assurance
that our internal control over financial reporting will not be subject to additional material weaknesses or significant deficiencies
in the future. If the remedial actions that we may take in the future are insufficient to address the material weakness or if additional
material weaknesses or significant deficiencies in our internal control are discovered or occur in the future, our consolidated financial
statements may contain material misstatements, we could be required to restate our financial results, our access to capital markets may
be affected, we may be unable to maintain or regain compliance with applicable securities laws and NYSE listing requirements, and we
may be subject to regulatory investigations and penalties. Additionally, we may encounter problems or delays in implementing any additional
changes necessary for management to make a favorable assessment of our internal control over financial reporting. If we cannot favorably
assess the effectiveness of our internal control over financial reporting, investors could lose confidence in our financial information
and the price of our Common Stock or Preferred Stock could decline.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We may experience losses caused by severe
weather conditions, natural disasters or the physical effects of climate change.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our properties are susceptible
to revenue loss, cost increase or damage caused by severe weather conditions or natural disasters such as hurricanes, earthquakes, tornadoes
and floods, as well as the effects of climate change. To the extent climate change causes changes in weather patterns, we could experience
increases in storm intensity and rising sea-levels. Over time, these conditions could result in declining hotel demand, significant damage
to our properties or our inability to operate the affected hotels at all.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We believe that our properties
are adequately insured, consistent with industry standards, to cover reasonably anticipated losses that may be caused by hurricanes,
earthquakes, tornadoes, floods and other severe weather conditions and natural disasters, including the effects of climate change. Nevertheless,
we are subject to the risk that such insurance will not fully cover all losses and, depending on the severity of the event and the impact
on our properties, such insurance may not cover a significant portion of the losses including but not limited to the costs associated
with evacuation. These losses may lead to an increase in our cost of insurance, a decrease in our anticipated revenues from an affected
property or a loss of all or a portion of the capital we have invested in an affected property. In addition, we may not purchase insurance
under certain circumstances if the cost of insurance exceeds, in our judgment, the value of the coverage relative to the risk of loss.
Also, changes in federal and state legislation and regulation relating to climate change could result in increased capital expenditures
to improve the energy efficiency and resiliency of our existing properties and could also necessitate spending more on our new development
properties without a corresponding increase in revenue.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We face risks related to an ongoing SEC
investigation.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In June&nbsp;2020, each
of the Company, Braemar, Ashford Inc. and Lismore (collectively with the Company, Braemar and Ashford Inc., the &ldquo;Ashford Companies&rdquo;),
received an administrative subpoena from the SEC. The Company&rsquo;s administrative subpoena requires the production of documents and
other information since January&nbsp;1, 2018 relating to, among other things, (1)&nbsp;related party transactions among the Ashford Companies
(including the Lismore Agreement between the Company and Lismore pursuant to which the Company engaged Lismore to negotiate the refinancing,
modification or forbearance of certain mortgage debt) or between any of the Ashford Companies and any officer, director or owner of the
Ashford Companies or any entity controlled by any such person, and (2)&nbsp;the Company&rsquo;s accounting policies, procedures, and
internal controls related to such related party transactions. In addition, in October&nbsp;2020, Mr.&nbsp;Monty J. Bennett, chairman
of the Board, received an administrative subpoena from the SEC requiring testimony and the production of documents and other information
substantially similar to the requests in the subpoenas received by the Ashford Companies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Company and Mr.&nbsp;Monty
Bennett are responding to the administrative subpoenas. At this point, we are unable to predict what the timing or the outcome of the
SEC investigation may be or what, if any, consequences the SEC investigation may have with respect to the Company. However, the SEC investigation
could result in considerable legal expenses, divert management&rsquo;s attention from other business concerns and harm our business.
If the SEC were to determine that legal violations occurred, we could be required to pay significant civil and/or criminal penalties
or other amounts, and remedies or conditions could be imposed as part of any resolution. We can provide no assurances as to the outcome
of the SEC investigation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Risks Related to Our Debt Financing</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B>We have a significant
amount of debt, and our organizational documents have no limitation on the amount of additional indebtedness that we may incur in the
future.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">On January&nbsp;15, 2021,
we entered into a senior secured credit facility with Oaktree, resulting in the Company&rsquo;s outstanding indebtedness consisting of
our $200&nbsp;million senior secured credit facility and approximately $3.7 billion in property level debt, including approximately $3.5&nbsp;billion
of variable interest rate debt. We have an additional $250 million of capacity under our senior secured credit facility with Oaktree
in the form of &ldquo;delayed draw&rdquo; term loan commitments. On October 12, 2021, we entered into Amendment No. 1 to the senior secured
credit facility, which did not result in us incurring additional indebtedness or increasing our borrowing capacity under the facility
but which, among other items, (i) suspends our obligations to comply with certain covenants under the facility if at any point there
are no loans or accrued interest outstanding, (ii)&nbsp;suspends our obligation to subordinate fees due under the Advisory Agreement
if at any point there are no loans or accrued interest outstanding or any accrued dividends on any of our preferred stock and we have
a minimum level of cash, (iii) permits Oaktree to, at any time, elect to receive an Exit Fee in warrants for the purchase of Common Stock
equal to 19.9% of all Common Stock outstanding on the closing date of the senior secured credit facility subject to certain upward or
downward adjustments, and (iv) provides that in the event prior to the termination of the facility, Oaktree elects to receive the Exit
Fee in warrants and any of such warrants are sold at a price per share of Common Stock in excess of $40, all obligations owed to Oaktree
shall be reduced by an amount equal to 25% of the amount of such consideration, subject to certain adjustments. We may also incur additional
variable rate debt. In the future, we may incur additional indebtedness to finance future hotel acquisitions, capital improvements and
development activities and other corporate purposes. A substantial level of indebtedness could have adverse consequences for our business,
results of operations and financial position because it could, among other things:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">require
                                            us to dedicate a substantial portion of our cash flow from operations to make principal and
                                            interest payments on our indebtedness, thereby reducing our cash flow available to fund working
                                            capital, capital expenditures and other general corporate purposes, including to pay dividends
                                            on our Common Stock and our Preferred Stock as currently contemplated or necessary to satisfy
                                            the requirements for qualification as a REIT;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                       </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">increase
                                            our vulnerability to general adverse economic and industry conditions and limit our flexibility
                                            in planning for, or reacting to, changes in our business and our industry;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                    </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">limit
                                            our ability to borrow additional funds or refinance indebtedness on favorable terms or at
                                            all to expand our business or ease liquidity constraints; and</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">place
                                            us at a competitive disadvantage relative to competitors that have less indebtedness.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our Charter and bylaws do
not limit the amount or&nbsp;percentage of indebtedness that we may incur, and we are subject to risks normally associated with debt
financing. Generally, our mortgage debt carries maturity dates or call dates such that the loans become due prior to their full amortization.
It may be difficult to refinance or extend the maturity of such loans on terms acceptable to us, or at all, and we may not have sufficient
borrowing capacity on our senior secured credit facility to repay any amounts that we are unable to refinance. Although we believe that
we will be able to refinance or extend the maturity of these loans, or will have the capacity to repay them, if necessary, using draws
under our senior secured credit facility, there can be no assurance that our senior secured credit facility will be available to repay
such maturing debt, as draws under our senior secured credit facility are subject to limitations based upon our unencumbered assets and
certain financial covenants. These conditions could adversely affect our financial position, results of operations, and cash flows or
the market price of our stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Increases in interest rates could increase our debt payments.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">On January&nbsp;15, 2021,
we entered into the Original Credit Agreement with Oaktree, resulting in the Company&rsquo;s outstanding indebtedness consisting of our
$200&nbsp;million senior secured credit facility and approximately $3.7 billion in property level debt, including approximately $3.5
billion of variable interest rate debt. We have an additional $250 million of capacity under our Credit Agreement with Oaktree. On October
12, 2021, we entered into Amendment No. 1 to the Credit Agreement which did not result in us incurring additional indebtedness or increasing
our borrowing capacity under the facility but which, among other items, (i) suspends our obligations to comply with certain covenants
under the facility if at any point there are no loans or accrued interest outstanding, (ii)&nbsp;suspends our obligation to subordinate
fees due under the Advisory Agreement if at any point there are no loans or accrued interest outstanding or any accrued dividends on
any of our preferred stock and we have a minimum level of cash, (iii) permits Oaktree to, at any time, elect to receive an Exit Fee in
warrants for the purchase of Common Stock equal to 19.9% of all Common Stock outstanding on the closing date of the senior secured credit
facility subject to certain upward or downward adjustments, and (iv)&nbsp;provides that in the event prior to the termination of the
facility, Oaktree elects to receive the Exit Fee in warrants and any of such warrants are sold at a price per share of Common Stock in
excess of $40, all obligations owed to Oaktree shall be reduced by an amount equal to 25% of the amount of such consideration, subject
to certain adjustments. We may also incur additional variable rate debt. Increases in interest rates increase our interest costs on our
variable-rate debt and could increase interest expense on any future fixed rate debt we may incur, and interest we pay reduces our cash
available for distributions, expansion, working capital and other uses. Moreover, periods of rising interest rates heighten the risks
described immediately above under &ldquo;We have a significant amount of debt, and our organizational documents have no limitation on
the amount of additional indebtedness that we may incur in the future.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We have defaulted on our property level
secured debt and if we are unable to negotiate forbearance agreements, the lenders may foreclose on our hotels.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Nearly all of the Company&rsquo;s
properties are pledged as collateral for a variety of loans. On or about March&nbsp;17, 2020, we sent notice to all of our lenders notifying
such lenders that the spread of COVID-19 was having a significant negative impact on the travel and hospitality industry and that our
hotels were experiencing a severe decrease in revenue, resulting in a negative impact on cash flow. While our loan agreements do not
contain forbearance rights, we requested a modification to the terms of the loans. Specifically, we requested that for a period of time,
shortfalls in debt service payments accrue without penalty and all extension options be deemed granted notwithstanding the existence
of any debt service payment accruals. Beginning on April&nbsp;1, 2020, we did not make principal or interest payments under nearly all
of our loans, which constituted an &ldquo;Event of Default&rdquo; as such term is defined under the applicable loan documents. Pursuant
to the terms of the applicable loan documents, such an Event of Default caused an automatic increase in the interest rate on our outstanding
loan balance for the period such Event of Default remains outstanding. Following an Event of Default, our lenders can generally elect
to accelerate all principal and accrued interest payments that remain outstanding under the applicable loan agreement and foreclose on
the applicable hotel properties that are security for such loans.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Company is in the process
of negotiating forbearance agreements with its lenders. As of October 18, 2021, forbearance agreements have been executed on some, but
not all of our loans. In the aggregate, we have entered into forbearance and other agreements with varying terms and conditions that
conditionally waive or defer payment defaults for loans with a total outstanding principal balance of approximately $3.6 billion out
of approximately $3.7 billion in property level debt outstanding as of the date of this filing. We cannot predict the likelihood that
the remaining forbearance agreement discussions will be successful. If we are unsuccessful in negotiating these forbearance agreements,
the lenders could potentially foreclose on our hotels.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Any such Event of Default,
acceleration of payments, or foreclosure of our assets could have a material adverse effect on our financial condition, results of operations
and cash flows and ability to continue to operate or make distributions to our stockholders in the future. In addition, an Event of Default
could trigger a termination fee under the Advisory Agreement with Ashford Inc. An Event of Default could significantly limit our financing
alternatives, which could cause us to curtail our investment activities and/or dispose of assets. It is also possible that we could become
involved in litigation related to matters concerning the defaulted loans, and such litigation could result in significant costs to us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In addition to losing the
applicable properties, a foreclosure may result in recognition of taxable income. Under the Code, a foreclosure of property securing
non-recourse debt would be treated as a sale of the property for a purchase price equal to the outstanding balance of the debt secured
by the mortgage. If the outstanding balance of the debt secured by the mortgage exceeds our tax basis in the property, we would recognize
taxable income on foreclosure even though we did not receive any cash proceeds. As a result, we may be required to identify and utilize
other sources of cash for distributions to our stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>If we default on our senior secured credit
facility with entities managed by Oaktree, the lenders may foreclose on our assets which are pledged as collateral.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Substantially all of our
assets have been pledged as collateral in our senior secured credit facility with lending entities managed by Oaktree. If we default
on our senior secured credit facility or do not meet our covenants thereunder, Oaktree will be able to foreclose on its collateral under
the senior secured credit facility, which would have a material adverse effect on our business and operations. Additionally, under the
senior secured credit facility, a &ldquo;Change of Control&rdquo; shall occur in the event, among other items, during any period of 12
consecutive months, a majority of the members of the Board ceases to be composed of individuals (i)&nbsp;who were members of that Board
on the first day of such period, (ii)&nbsp;whose election or nomination to that Board was approved by individuals referred to in clause
(i)&nbsp;above constituting at the time of such election or nomination at least a majority of that Board or (iii)&nbsp;whose election
or nomination to that Board was approved by individuals referred to in clauses (i)&nbsp;and (ii)&nbsp;above constituting at the time
of such election or nomination at least a majority of that board. If there is a &ldquo;Change of Control,&rdquo; Oaktree shall have the
option to cause the Company to prepay all or any portion of the outstanding loans, together with a potential premium of 1% of the principal
amount. Additionally, as amended by Amendment No. 1 to the Credit Agreement, at any time Oaktree may elect to receive the Exit Fee in
warrants for the purchase of Common Stock equal to 19.9% of all Common Stock outstanding on the closing date of the senior secured credit
facility subject to certain upward or downward adjustments. In the event Oaktree elects to be paid an Exit Fee in cash or Common Stock,
we may satisfy such Exit Fee by the issuance of warrants in an equivalent amount of Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We may enter into other transactions which
could further exacerbate the risks to our financial condition. The use of debt to finance future acquisitions could restrict operations,
inhibit our ability to grow our business and revenues, and negatively affect our business and financial results.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We intend to incur additional
debt in connection with future hotel acquisitions. We may, in some instances, borrow under our senior secured credit facility or borrow
new funds to acquire hotels. In addition, we may incur mortgage debt by obtaining loans secured by a portfolio of some or all of the
hotels that we own or acquire. If necessary or advisable, we also may borrow funds to make distributions to our stockholders to maintain
our qualification as a REIT for U.S. federal income tax purposes. To the extent that we incur debt in the future and do not have sufficient
funds to repay such debt at maturity, it may be necessary to refinance the debt through debt or equity financings, which may not be available
on acceptable terms or at all and which could be dilutive to our stockholders. If we are unable to refinance our debt on acceptable terms
or at all, we may be forced to dispose of hotels at inopportune times or on disadvantageous terms, which could result in losses. To the
extent we cannot meet our future debt service obligations, we will risk losing to foreclosure some or all of our hotels that may be pledged
to secure our obligation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Covenants, &ldquo;cash trap&rdquo; provisions
or other terms in our mortgage loans and our senior secured credit facility, as well as any future credit facility, could limit our flexibility
and adversely affect our financial condition or our qualification as a REIT.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Some of our loan agreements
and our senior secured credit facility contain financial and other covenants. If we violate covenants in any debt agreements, we could
be required to repay all or a portion of our indebtedness before maturity at a time when we might be unable to arrange financing for
such repayment on attractive terms, if at all. Violations of certain debt covenants may also prohibit us from borrowing unused amounts
under our lines of credit, even if repayment of some or all the borrowings is not required. In addition, financial covenants under our
current or future debt obligations could impair our planned business strategies by limiting our ability to borrow beyond certain amounts
or for certain purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Some of our loan agreements
also contain cash trap provisions that are triggered if the performance of our hotels decline. When these provisions are triggered, substantially
all of the profit generated by our hotels is deposited directly into lockbox accounts and then swept into cash management accounts for
the benefit of our various lenders. Cash is not distributed to us at any time after the cash trap provisions have been triggered until
we have cured performance issues. This could affect our liquidity and our ability to make distributions to our stockholders. If we are
not able to make distributions to our stockholders, we may not qualify as a REIT.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>There is refinancing risk associated with our debt.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We finance our long-term
growth and liquidity needs with debt financings having staggered maturities, and use variable-rate debt or a mix of fixed and variable-rate
debt as appropriate based on favorable interest rates, principal amortization and other terms. In the event that we do not have sufficient
funds to repay the debt at the maturity of these loans, we will need to refinance this debt. If the credit environment is constrained
at the time of our debt maturities (including due to adverse economic conditions related to the COVID-19 pandemic), we would have a very
difficult time refinancing debt. When we refinance our debt, prevailing interest rates and other factors may result in paying a greater
amount of debt service, which will adversely affect our cash flow, and, consequently, our cash available for distribution to our stockholders.
If we are unable to refinance our debt on acceptable terms, we may be forced to choose from a number of unfavorable options. These options
include agreeing to otherwise unfavorable financing terms on one or more of our unencumbered assets, selling one or more hotels on disadvantageous
terms, including unattractive prices or defaulting on the mortgage and permitting the lender to foreclose. Any one of these options could
have a material adverse effect on our business, financial condition, results of operations and our ability to make distributions to our
stockholders. If we sell a hotel, the required loan repayment may exceed the sale proceeds.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our hedging strategies may not be successful
in mitigating our risks associated with interest rates and could reduce the overall returns on an investment in our Company.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We may use various financial
instruments, including derivatives, to provide a level of protection against interest rate increases and other risks, but no hedging
strategy can protect us completely. These instruments involve risks, such as the risk that the counterparties may fail to honor their
obligations under these arrangements, that these arrangements may not be effective in reducing our exposure to interest rate changes
or other risks and that a court could rule that such agreements are not legally enforceable. These instruments may also generate income
that may not be treated as qualifying REIT income. In addition, the nature and timing of hedging transactions may influence the effectiveness
of our hedging strategies. Poorly designed strategies or improperly executed transactions could actually increase our risk and losses.
Moreover, hedging strategies involve transaction and other costs. We cannot assure you that our hedging strategy and the instruments
that we use will adequately offset the risk of interest rate volatility or other risks or that our hedging transactions will not result
in losses that may reduce the overall return on your investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We may be adversely affected by changes
in LIBOR reporting practices, the method in which LIBOR is determined or the use of alternative reference rates.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">As of June 30, 2021, we
had approximately $3.5&nbsp;billion of variable interest rate debt as well as interest rate derivatives including caps and floors that
are indexed to the London Interbank Offered Rate (&ldquo;LIBOR&rdquo;). In July&nbsp;2017, the United Kingdom regulator that regulates
LIBOR announced its intention to phase out LIBOR rates by the end of 2021. The Alternative Reference Rates Committee, a steering committee
comprised of large U.S. financial institutions, has proposed replacing USD-LIBOR with a new index calculated by short-term repurchase
agreements, the Secured Overnight Financing Rate. At this time, no consensus exists as to what rate or rates may become accepted alternatives
to LIBOR, and it is impossible to predict whether and to what extent banks will continue to provide LIBOR submissions to the administrator
of LIBOR, whether LIBOR rates will cease to be published or supported before or after 2021 or whether any additional reforms to LIBOR
may be enacted in the United Kingdom or elsewhere. Such developments and any other legal or regulatory changes in the method by which
LIBOR is determined or the transition from LIBOR to a successor benchmark may result in, among other things, a sudden or prolonged increase
or decrease in LIBOR, a delay in the publication of LIBOR, and changes in the rules or methodologies in LIBOR, which may discourage market
participants from continuing to administer or to participate in LIBOR&rsquo;s determination and, in certain situations, could result
in LIBOR no longer being determined and published. If a published U.S. dollar LIBOR rate is unavailable after 2021, the interest rates
on our debt which is indexed to LIBOR will be determined using various alternative methods, any of which may result in interest obligations
which are more than or do not otherwise correlate over time with the payments that would have been made on such debt if U.S. dollar LIBOR
was available in its current form. Further, the same costs and risks that may lead to the unavailability of U.S. dollar LIBOR may make
one or more of the alternative methods impossible or impracticable to determine. Any of these proposals or consequences could have a
material adverse effect on our financing costs, and as a result, our financial condition, operating results and cash flows.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Risks Related to Hotel Investments</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We are subject to general risks associated
with operating hotels.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We own hotel properties,
which have different economic characteristics than many other real estate assets, and a hotel REIT is structured differently than many
other types of REITs. A typical office property, for example, has long-term leases with third-party tenants, which provide a relatively
stable long-term revenue stream. Hotels, on the other hand, generate revenue from guests who typically stay at the hotel for only a few
nights, which causes the room rate and occupancy levels at each of our hotels to change every day, and results in earnings that can be
highly volatile. In addition, our hotels are subject to various operating risks common to the hotel industry, many of which are beyond
our control, and are discussed in more detail below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">These factors could adversely
affect our hotel revenues and expenses, as well as the hotels underlying our mortgage and mezzanine loans, which in turn could adversely
affect our financial condition, results of operations, the market price of our Common Stock and our ability to make distributions to
our stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The outbreak of COVID-19 has and will continue
to significantly reduce our occupancy rates and RevPAR.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our business has been and
will continue to be materially adversely affected by the impact of, and the public concern about, a pandemic disease. In December&nbsp;2019,
COVID-19 was identified in Wuhan, China, subsequently spread to other regions of the world, and has resulted in increased travel restrictions
and extended shutdown of certain businesses, including in every state in the United States. Since late February&nbsp;2020, we have experienced
a significant decline in occupancy and RevPAR and we expect the significant occupancy and RevPAR reduction associated with COVID-19 to
continue as we are recording significant reservation cancellations relative to prior expectations as well as a significant reduction
in new reservations. The continued outbreak of the virus in the U.S. has and will continue to further reduce travel and demand at our
hotels. The prolonged occurrence of the virus has resulted in health or other government authorities imposing widespread restrictions
on travel or other market impacts. The hotel industry and our portfolio have and we expect will continue to experience the postponement
or cancellation of a significant number of business conferences and similar events. At this time those restrictions are very fluid and
evolving. We have been and will continue to be negatively impacted by those restrictions. Given that the type, degree and length of such
restrictions are not known at this time, we cannot predict the overall impact of such restrictions on us or the overall economic environment.
In addition, one or more possible recurrences of COVID-19 cases could result in further reductions in business and personal travel and
could cause state and local governments to reinstate travel restrictions. We may also face increased risk of litigation if we have guests
or employees who become ill due to COVID-19.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">As such, the impact these
restrictions may have on our financial position, operating results and liquidity cannot be reasonably estimated at this time, but the
impact will likely be material. Additionally, the public perception of a risk of a pandemic or media coverage of these diseases, or public
perception of health risks linked to perceived regional food and beverage safety has materially adversely affected us by reducing demand
for our hotels. The length of time required for an effective vaccine or therapy to become widely available is uncertain. These events
have resulted in a sustained, significant drop in demand for our hotels and could have a material adverse effect on us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Declines in or disruptions to the travel
industry could adversely affect our business and financial performance.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our business and financial
performance are affected by the health of the worldwide travel industry. Travel expenditures are sensitive to personal and business-related
discretionary spending levels, tending to decline or grow more slowly during economic downturns, as well as to disruptions due to other
factors, including those discussed below. Decreased travel expenditures could reduce the demand for our services, thereby causing a reduction
in revenue. For example, during regional or global recessions, domestic and global economic conditions can deteriorate rapidly, resulting
in increased unemployment and a reduction in expenditures for both business and leisure travelers. A slower spending on the services
we provide could have a negative impact on our revenue growth.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Other factors that could
negatively affect our business include: terrorist incidents and threats and associated heightened travel security measures; political
and regional strife; acts of God such as earthquakes, hurricanes, fires, floods, volcanoes and other natural disasters; war; concerns
with or threats of pandemics, contagious diseases or health epidemics, such as COVID-19, Ebola, H1N1 influenza (swine flu), MERS, SARs,
avian flu, the Zika virus or similar outbreaks; environmental disasters; lengthy power outages; increased pricing, financial instability
and capacity constraints of air carriers; airline job actions and strikes; fluctuations in hotel supply, occupancy and ADR; changes to
visa and immigration requirements or border control policies; imposition of taxes or surcharges by regulatory authorities; and increases
in gasoline and other fuel prices.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Because these events or
concerns, and the full impact of their effects, are largely unpredictable, they can dramatically and suddenly affect travel behavior
by consumers and decrease demand. Any decrease in demand, depending on its scope and duration, together with any future issues affecting
travel safety, could significantly and adversely affect our business, working capital and financial performance over the short and long-term.
In addition, the disruption of the existing travel plans of a significant number of travelers upon the occurrence of certain events,
such as severe weather conditions, actual or threatened terrorist activity, war or travel-related health events, could result in significant
additional costs and decrease our revenues, in each case, leading to constrained liquidity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Some of our hotels are subject to ground
leases; if we are found to be in breach of a ground lease or are unable to renew a ground lease, our business could be materially and
adversely affected.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Some of our hotels are on
land subject to ground leases, at least two of which cover the entire property. Accordingly, we only own a long-term leasehold rather
than a fee simple interest, with respect to all or a portion of the real property at these hotels. We may not continue to make payments
due on our ground leases, particularly in light of the downturn in our business occasioned by COVID-19. If we fail to make a payment
on a ground lease or are otherwise found to be in breach of a ground lease, we could lose the right to use the hotel or portion of the
hotel property that is subject to the ground lease. In addition, unless we can purchase the fee simple interest in the underlying land
and improvements, or extend the terms of these ground leases before their expiration, we will lose our right to operate these properties
and our interest in the improvements upon expiration of the ground leases. We may not be able to renew any ground lease upon its expiration,
or if renewed, the terms may not be favorable. Our ability to exercise any extension options relating to our ground leases is subject
to the condition that we are not in default under the terms of the ground lease at the time that we exercise such options. If we lose
the right to use a hotel due to a breach or non-renewal of the ground lease, we would be unable to derive income from such hotel and
would need to purchase an interest in another hotel to attempt to replace that income, which could materially and adversely affect our
business, operating results and prospects. Our ability to refinance a hotel property subject to a ground lease may be negatively impacted
as the ground lease expiration date approaches.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We may have to make significant capital
expenditures to maintain our hotel properties, and any development activities we undertake may be more costly than we anticipate.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our hotels have an ongoing
need for renovations and other capital improvements, including replacements, from time to time, of FF&amp;E. Managers or franchisors
of our hotels also will require periodic capital improvements pursuant to the management agreements or as a condition of maintaining
franchise licenses. Generally, we are responsible for the cost of these capital improvements. We may also develop hotel properties, timeshare&nbsp;units
or other alternate uses of portions of our existing properties, including the development of retail, residential, office or apartments,
including through joint ventures. Such renovation and development involves substantial risks, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">construction
                                            cost overruns and delays;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                               </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            disruption of operations and displacement of revenue at operating hotels, including revenue
                                            lost while rooms, restaurants or meeting space under renovation are out of service;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                  </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            cost of funding renovations or developments and inability to obtain financing on attractive
                                            terms;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                                                               </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            return on our investment in these capital improvements or developments failing to meet expectations;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                                                                 </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">governmental
                                            restrictions on the nature or size of a project;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                      </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">inability
                                            to obtain all necessary zoning, land use, building, occupancy, and construction permits;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                                                           </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">loss
                                            of substantial investment in a development project if a project is abandoned before completion;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                                                             </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">acts
                                            of God such as earthquakes, hurricanes, floods or fires that could adversely affect a project;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                                                            </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">environmental
                                            problems; and</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                    </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">disputes
                                            with franchisors or hotel managers regarding compliance with relevant franchise agreements
                                            or management agreements.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">If we have insufficient
cash flow from operations to fund needed capital expenditures, then we will need to obtain additional debt or equity financing to fund
future capital improvements, and we may not be able to meet the loan covenants in any financing obtained to fund the new development,
creating default risks.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In addition, to the extent
that developments are conducted through joint ventures, this creates additional risks, including the possibility that our partners may
not meet their financial obligations or could have or develop business interests, policies or objectives that are inconsistent with ours.
See &ldquo;Our joint venture investments could be adversely affected by our lack of sole decision-making authority, our reliance on a
co-venturer&rsquo;s financial condition and disputes between us and our co-venturers.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Any of the above factors
could affect adversely our and our partners&rsquo; ability to complete the developments on schedule and along the scope that currently
is contemplated, or to achieve the intended value of these projects. For these reasons, there can be no assurances as to the value to
be realized by the company from these transactions or any future similar transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The hotel business is seasonal, which affects
our results of operations from quarter to quarter.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The hotel industry is seasonal
in nature. This seasonality can cause quarterly fluctuations in our financial condition and operating results, including in any distributions
on our Common Stock. Our quarterly operating results may be adversely affected by factors outside our control, including weather conditions
and poor economic factors in certain markets in which we operate. We can provide no assurances that our cash flows will be sufficient
to offset any shortfalls that occur as a result of these fluctuations. As a result, we may have to reduce distributions or enter into
short-term borrowings in certain quarters in order to make distributions to our stockholders, and we can provide no assurances that such
borrowings will be available on favorable terms, if at all.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The cyclical nature of the lodging industry may cause fluctuations
in our operating performance, which could have a material adverse effect on us.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The lodging industry historically
has been highly cyclical in nature. Fluctuations in lodging demand and, therefore, hotel operating performance, are caused largely by
general economic and local market conditions, which subsequently affect levels of business and leisure travel. In addition to general
economic conditions, new hotel room supply is an important factor that can affect the lodging industry&rsquo;s performance, and overbuilding
has the potential to further exacerbate the negative impact of an economic recession. Room rates and occupancy, and thus RevPAR, tend
to increase when demand growth exceeds supply growth. We can provide no assurances regarding whether, or the extent to which, lodging
demand will exceed supply and if so, for what period of time. An adverse change in lodging fundamentals could result in returns that
are substantially below our expectations or result in losses, which could have a material adverse effect on us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Many real estate costs are fixed, even
if revenue from our hotels decreases.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Many costs, such as real
estate taxes, insurance premiums and maintenance costs, generally are not reduced even when a hotel is not fully occupied, room rates
decrease or other circumstances cause a reduction in revenues. In addition, newly acquired or renovated hotels may not produce the revenues
we anticipate immediately, or at all, and the hotel&rsquo;s operating cash flow may be insufficient to pay the operating expenses and
debt service associated with these new hotels. If we are unable to offset real estate costs with sufficient revenues across our portfolio,
we may be adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our operating expenses may increase in
the future which could cause us to raise our room rates, which may deplete room occupancy, or cause us to realize lower net operating
income as a result of increased expenses that are not offset by increased room rates, in either case decreasing our cash flow and our
operating results.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Operating expenses, such
as expenses for fuel, utilities, labor and insurance, are not fixed and may increase in the future. To the extent such increases affect
our room rates and therefore our room occupancy at our lodging properties, our cash flow and operating results may be negatively affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The increasing use of Internet travel intermediaries
by consumers may adversely affect our profitability.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Some of our hotel rooms
are booked through Internet travel intermediaries. As Internet bookings increase, these intermediaries may be able to obtain higher commissions,
reduced room rates or other significant contract concessions from our management companies. Moreover, some of these Internet travel intermediaries
are attempting to offer hotel rooms as a commodity, by increasing the importance of price and general indicators of quality at the expense
of brand identification. These intermediaries may hope that consumers will eventually develop brand loyalties to their reservations system
rather than to the brands under which our properties are franchised. Although most of the business for our hotels is expected to be derived
from traditional channels, if the amount of sales made through Internet intermediaries increases significantly, rooms revenue may be
lower than expected, and we may be adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We may be adversely affected by increased
use of business-related technology, which may reduce the need for business-related travel.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The increased use of teleconference
and video-conference technology by businesses could result in decreased business travel as companies increase the use of technologies
that allow multiple parties from different locations to participate at meetings without traveling to a centralized meeting location.
To the extent that such technologies play an increased role in day-to-day business and the necessity for business-related travel decreases,
hotel room demand may decrease and we may be adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our hotels may be subject to unknown or
contingent liabilities which could cause us to incur substantial costs.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The hotel properties that
we own or may acquire are or may be subject to unknown or contingent liabilities for which we may have no recourse, or only limited recourse,
against the sellers. In general, the representations and warranties provided under the transaction agreements related to the sales of
the hotel properties may not survive the closing of the transactions. While we will seek to require the sellers to indemnify us with
respect to breaches of representations and warranties that survive, such indemnification may be limited and subject to various materiality
thresholds, a significant deductible or an aggregate cap on losses. As a result, there is no guarantee that we will recover any amounts
with respect to losses due to breaches by the sellers of their representations and warranties. In addition, the total amount of costs
and expenses that may be incurred with respect to liabilities associated with these hotels may exceed our expectations, and we may experience
other unanticipated adverse effects, all of which may adversely affect our financial condition, results of operations, the market price
of our Common Stock and our ability to make distributions to our stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Future terrorist attacks or changes in terror alert levels could
materially and adversely affect us.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Previous terrorist attacks
and subsequent terrorist alerts have adversely affected the U.S. travel and hospitality industries since 2001, often disproportionately
to the effect on the overall economy. The extent of the impact that actual or threatened terrorist attacks in the U.S. or elsewhere could
have on domestic and international travel and our business in particular cannot be determined, but any such attacks or the threat of
such attacks could have a material adverse effect on travel and hotel demand, our ability to finance our business and our ability to
insure our hotels, which could materially adversely affect us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">During 2020, approximately
8% of our total hotel revenue was generated from nine hotels located in the Washington D.C. area, one of several key U.S. markets considered
vulnerable to terrorist attack. Our financial and operating performance may be adversely affected by potential terrorist attacks. Terrorist
attacks in the future may cause our results to differ materially from anticipated results. Hotels we own in other market locations may
be subject to this risk as well.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We are subject to risks associated with
the employment of hotel personnel, particularly with hotels that employ unionized labor.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our managers, including
Remington Hotels, a subsidiary of Ashford Inc., and unaffiliated third-party managers are responsible for hiring and maintaining the
labor force at each of our hotels. Although we do not directly employ or manage employees at our hotels, we still are subject to many
of the costs and risks generally associated with the hotel labor force, particularly at those hotels with unionized labor. From time
to time, hotel operations may be disrupted as a result of strikes, lockouts, public demonstrations or other negative actions and publicity.
We also may incur increased legal costs and indirect labor costs as a result of contract disputes involving our managers and their labor
force or other events. The resolution of labor disputes or re-negotiated labor contracts could lead to increased labor costs, a significant
component of our hotel operating costs, either by increases in wages or benefits or by changes in work rules that raise hotel operating
costs. We do not have the ability to affect the outcome of these negotiations. Our third party managers may also be unable to hire quality
personnel to adequately staff hotel departments, which could result in a sub-standard level of service to hotel guests and hotel operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Hotels where our managers
have collective bargaining agreements with their employees are more highly affected by labor force activities than others. The resolution
of labor disputes or re-negotiated labor contracts could lead to increased labor costs, either by increases in wages or benefits or by
changes in work rules that raise hotel operating costs. Furthermore, labor agreements may limit the ability of our hotel managers to
reduce the size of hotel workforces during an economic downturn because collective bargaining agreements are negotiated between the hotel
managers and labor unions. Our ability, if any, to have any material impact on the outcome of these negotiations is restricted by and
dependent on the individual management agreement covering a specific property, and we may have little ability to control the outcome
of these negotiations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In addition, changes in
labor laws may negatively impact us. For example, the implementation of new occupational health and safety regulations, minimum wage
laws, and overtime, working conditions status and citizenship requirements and the Department of Labor&rsquo;s proposed regulations expanding
the scope of non-exempt employees under the Fair Labor Standards Act to increase the entitlement to overtime pay could significantly
increase the cost of labor in the workforce, which would increase the operating costs of our hotel properties and may have a material
adverse effect on us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in"></P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Risks Related to Conflicts of
Interest</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our agreements with our external advisor
and its subsidiaries, as well as our mutual exclusivity agreement and management agreements with Remington Hotels and Premier, subsidiaries
of Ashford Inc., were not negotiated on an arm&rsquo;s-length basis, and we may pursue less vigorous enforcement of their terms because
of conflicts of interest with certain of our executive officers and directors and key employees of our advisor.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Because each of our executive
officers are also key employees of our advisor, Ashford LLC, a subsidiary of Ashford Inc., and have ownership interests in Ashford Inc.
and because the chairman of our board has an ownership interest in Ashford Inc., our Advisory Agreement, our master hotel management
agreement and hotel management mutual exclusivity agreement with Remington Hotels, a subsidiary of Ashford Inc., and our master project
management agreement and project management mutual exclusivity agreement with Premier, a subsidiary of Ashford Inc., among other agreements
between us and subsidiaries of Ashford Inc. were not negotiated on an arm&rsquo;s-length basis, and we did not have the benefit of arm&rsquo;s-length
negotiations of the type normally conducted with an unaffiliated third party. As a result, the terms, including fees and other amounts
payable, may not be as favorable to us as an arm&rsquo;s-length agreement. Furthermore, we may choose not to enforce, or to enforce less
vigorously, our rights under these agreements because of our desire to maintain our ongoing relationship with our advisor and its subsidiaries
(including Ashford LLC, Remington Hotels and Premier).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The termination fee payable to our advisor
significantly increases the cost to us of terminating our Advisory Agreement, thereby effectively limiting our ability to terminate our
advisor without cause and could make a change of control transaction less likely or the terms thereof less attractive to us and to our
stockholders.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The initial term of our
Advisory Agreement with our advisor is 10 years from the effective date of the Advisory Agreement, subject to an extension by our advisor
for up to 7 successive additional 10-year renewal terms thereafter. The Board will review our advisor&rsquo;s performance and fees annually
and, following the 10-year initial term, may elect to renegotiate the amount of fees payable under the Advisory Agreement in certain
circumstances. Additionally, if we undergo a change of control transaction, we will have the right to terminate the Advisory Agreement
with the payment of the termination fee described below. If we terminate the Advisory Agreement without cause or upon a change of control,
we will be required to pay our advisor a termination fee equal to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">(A)&nbsp;1.1
                                            multiplied by the greater of (i)&nbsp;12 times the net earnings of our advisor for the 12
                                            month period preceding the termination date of the Advisory Agreement; (ii)&nbsp;the earnings
                                            multiple (calculated as our advisor&rsquo;s total enterprise value on the trading day immediately
                                            preceding the day the termination notice is given to our advisor divided by our advisor&rsquo;s
                                            most recently reported adjusted earnings before interest, tax, depreciation and amortization
                                            (&ldquo;Adjusted EBITDA&rdquo;) for our advisor&rsquo;s common stock for the 12 month period
                                            preceding the termination date of the Advisory Agreement multiplied by the net earnings of
                                            our advisor for the 12 month period preceding the termination date of the Advisory Agreement;
                                            or (iii)&nbsp;the simple average of the earnings multiples for each of the three fiscal years
                                            preceding the termination of the Advisory Agreement (calculated as our advisor&rsquo;s total
                                            enterprise value on the last trading day of each of the three preceding fiscal years divided
                                            by, in each case, our advisor&rsquo;s Adjusted EBITDA for the same periods), multiplied by
                                            the net earnings of our advisor for the 12 month period preceding the termination date of
                                            the Advisory Agreement; plus</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                              </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">(B)&nbsp;an
                                            additional amount such that the total net amount received by our advisor after the reduction
                                            by state and U.S. federal income taxes at an assumed combined rate of 40% on the sum of the
                                            amounts described in (A)&nbsp;and (B)&nbsp;shall equal the amount described in (A).</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Any such termination fee
will be payable on or before the termination date. Moreover, our advisor is entitled to set off, take and apply any of our money on deposit
in any of our bank, brokerage or similar accounts (all of which are controlled by, and in the name of, our advisor) to amounts we owe
to our advisor-including amounts we would owe to our advisor in respect of the termination fee, and in certain circumstances permits
our advisor to escrow any money in such accounts into a termination fee escrow account (to which we would not have access) even prior
to the time that the termination fee is payable. The termination fee makes it more difficult for us to terminate our Advisory Agreement.
These provisions significantly increase the cost to us of terminating our Advisory Agreement, thereby limiting our ability to terminate
our advisor without cause.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our advisor has agreed that
its right to receive fees payable under the Advisory Agreement, including the termination fee and liquidated damages, shall be subordinate
under certain circumstances to the payment in full of obligations under our senior secured credit facility with Oaktree and has agreed
to enter into documents necessary to subordinate our advisor&rsquo;s interest in such fees. On January&nbsp;15, 2021, in connection with
our entry into the senior secured credit facility, the Company and our advisor, together with certain affiliated entities, entered into
the SNDA pursuant to which our advisor agreed to subordinate to the prior repayment in full of all obligations under the senior secured
credit facility with Oaktree, among other items, (1)&nbsp;advisory fees (other than reimbursable expenses) in excess of 80% of such fees
paid during the fiscal year ended December&nbsp;31, 2019, and (2)&nbsp;any termination fee or liquidated damages amounts under the Advisory
Agreement, or any amount owed under any enhanced return funding program in connection with the termination of the Advisory Agreement
or sale or foreclosure of assets financed thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">On October 12, 2021, we
entered into Amendment No. 1 to the senior secured credit facility which, among other items, suspends our obligation to subordinate fees
due under the Advisory Agreement if at any point there is no accrued interest outstanding or any accrued dividends on any of the Company&rsquo;s
preferred stock and the Company has sufficient unrestricted cash to repay in full all outstanding Loans.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our advisor manages other entities and
may direct attractive investment opportunities away from us. If we change our investment guidelines, our advisor is not restricted from
advising clients with similar investment guidelines.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our executive officers also
serve as key employees and as officers of our advisor and Braemar, and will continue to do so. Furthermore, Mr.&nbsp;Monty J. Bennett,
our chairman, is also the chief executive officer, chairman and a significant stockholder of our advisor and the chairman of Braemar.
Our Advisory Agreement requires our advisor to present investments that satisfy our investment guidelines to us before presenting them
to Braemar or any future client of our advisor. Additionally, in the future our advisor may advise other clients, some of which may have
investment guidelines substantially similar to ours.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Some portfolio investment
opportunities may include hotels that satisfy our investment objectives as well as hotels that satisfy the investment objectives of Braemar
or other entities advised by our advisor. If the portfolio cannot be equitably divided, our advisor will necessarily have to make a determination
as to which entity will be presented with the opportunity. In such a circumstance, our Advisory Agreement requires our advisor to allocate
portfolio investment opportunities between us, Braemar or other entities advised by our advisor in a fair and equitable manner, consistent
with our, Braemar&rsquo;s and such other entities&rsquo; investment objectives. In making this determination, our advisor, using substantial
discretion, will consider the investment strategy and guidelines of each entity with respect to acquisition of properties, portfolio
concentrations, tax consequences, regulatory restrictions, liquidity requirements and other factors deemed appropriate. In making the
allocation determination, our advisor has no obligation to make any such investment opportunity available to us. Further, our advisor
and Braemar have agreed that any new investment opportunities that satisfy our investment guidelines will be presented to the Board;
however, our board will have only ten business days to make a determination with respect to such opportunity prior to it being available
to Braemar. The above mentioned dual responsibilities may create conflicts of interest for our officers which could result in decisions
or allocations of investments that may benefit one entity more than the other.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our advisor and its key employees, most
of whom are Braemar&rsquo;s, Ashford Inc.&rsquo;s and our executive officers, face competing demands relating to their time and this
may adversely affect our operations.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We rely on our advisor and
its employees for the day-to-day operation of our business. Certain key employees of our advisor are executive officers of Braemar and
Ashford Inc. Because our advisor&rsquo;s key employees have duties to Braemar and Ashford Inc., as well as to our company, we do not
have their undivided attention and they face conflicts in allocating their time and resources between our company, Braemar and Ashford
Inc. Our advisor may also manage other entities in the future. During turbulent market conditions or other times when we need focused
support and assistance from our advisor, other entities for which our advisor also acts as an external advisor will likewise require
greater focus and attention as well, placing competing high levels of demand on the limited time and resources of our advisor&rsquo;s
key employees. Additionally, activist investors have, and in the future, may commence campaigns seeking to influence other entities advised
by our advisor to take particular actions favored by the activist or gain representation on the board of directors of such entities,
which could result in additional disruption and diversion of management&rsquo;s attention. We may not receive the necessary support and
assistance we require or would otherwise receive if we were internally managed by persons working exclusively for us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Conflicts of interest could result in our
management acting other than in our stockholders&rsquo; best interest.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Conflicts of interest in
general and specifically relating to Ashford Inc. and its subsidiaries (including Ashford LLC, Remington Hotels and Premier) may lead
to management decisions that are not in the stockholders&rsquo; best interest. The chairman of our Board, Mr.&nbsp;Monty J. Bennett,
is the chairman, chief executive officer and a significant stockholder of Ashford Inc. and Mr.&nbsp;Archie Bennett, Jr., who is our chairman
emeritus, is a significant stockholder of Ashford Inc. Prior to its acquisition by Ashford Inc. on November&nbsp;6, 2019, Messrs. Archie
Bennett, Jr. and Monty J. Bennett beneficially owned 100% of Remington Hotels. As of June 30, 2021, Remington Hotels managed 68 of our
100 hotel properties and the WorldQuest condominium properties and provides other services.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 2.9pt 0pt 5.5pt; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 2.9pt 0pt 5.5pt; text-align: justify; text-indent: 0.25in">Mr. Monty
J. Bennett is chairman and chief executive officer of Ashford Inc. and, together with Mr. Archie Bennett, Jr., as of June 30, 2021, owned
approximately 608,578 shares of Ashford Inc. common stock, which represented an approximate 20.1% ownership interest in Ashford Inc.,
and owned 18,758,600 shares of Ashford Inc. Series D Convertible Preferred Stock, which is exercisable (at an exercise price of $117.50
per share) into an additional approximate 3,991,191 shares of Ashford Inc. common stock, which if exercised as of June 30, 2021 would
have increased the Bennetts&rsquo; ownership interest in Ashford Inc. to 65.6%, provided that prior to August 8, 2023, the voting power
of the holders of the Ashford Inc. Series D Convertible Preferred Stock is limited to 40% of the combined voting power of all of the
outstanding voting securities of Ashford Inc. entitled to vote on any given matter. The 18,758,600 Series D Convertible Preferred Stock
owned by Mr. Monty J. Bennett and Mr. Archie Bennett, Jr. include 360,000 shares owned by trusts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 2.9pt 0pt 5.5pt; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Messrs. Archie Bennett,
Jr. and Monty J. Bennett&rsquo;s ownership interests in, and Mr. Monty J. Bennett&rsquo;s management obligations to, Ashford Inc. present
them with conflicts of interest in making management decisions related to the commercial arrangements between us and Ashford Inc. Mr.&nbsp;Monty
J. Bennett&rsquo;s management obligations to Ashford Inc. (and his obligations to Braemar, where he also serves as chairman of the board
of directors) reduce the time and effort he spends on us. Our Board has adopted a policy that requires all material approvals, actions
or decisions to which we have the right to make under the master hotel management agreement with Remington Hotels and the master project
management agreement with Premier be approved by a majority or, in certain circumstances, all of our independent directors. However,
given the authority and/or operational latitude provided to Remington Hotels under the master hotel management agreement and to Premier
under the master project management agreement, and Mr. Monty J. Bennett as the chairman and chief executive officer of Ashford Inc.,
could take actions or make decisions that are not in our stockholders&rsquo; best interest or that are otherwise inconsistent with the
obligations to us under the master hotel management agreement or master project management agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Holders of&nbsp;units in
our operating partnership, including members of our management team, may suffer adverse tax consequences upon our sale of certain properties.
Therefore, holders of&nbsp;units, either directly or indirectly, including Messrs. Archie Bennett, Jr. and Monty J. Bennett, or Mr.&nbsp;Mark
Nunneley, our Chief Accounting Officer, may have different objectives regarding the appropriate pricing and timing of a particular property&rsquo;s
sale. These officers and directors of ours may influence us to sell, not sell, or refinance certain properties, even if such actions
or inactions might be financially advantageous to our stockholders, or to enter into tax deferred exchanges with the proceeds of such
sales when such a reinvestment might not otherwise be in our best interest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We are a party to a master
hotel management agreement and a hotel management exclusivity agreement with Remington Hotels and a master project management agreement
and a project management exclusivity agreement with Premier, which describes the terms of Remington Hotels&rsquo; and Premier&rsquo;s,
respectively, services to our hotels, as well as any future hotels we may acquire that may or may not be property managed by Remington
Hotels or project managed by Premier. The exclusivity agreements requires us to engage Remington Hotels for hotel management and Premier
for project management, respectively, unless, in each case, our independent directors either: (i)&nbsp;unanimously vote to hire a different
manager or developer; or (ii)&nbsp;by a majority vote, elect not to engage Remington Hotels or Premier, as the case may be, because they
have determined that special circumstances exist or that, based on Remington Hotels&rsquo; or Premier&rsquo;s prior performance, another
manager or developer could perform the duties materially better. As significant owners of Ashford Inc., which would receive any development,
management, and management termination fees payable by us under the management agreements, Mr.&nbsp;Monty J. Bennett, and to a lesser
extent, Mr.&nbsp;Archie Bennett, Jr., in his role as chairman emeritus, may influence our decisions to sell, acquire, or develop hotels
when it is not in the best interests of our stockholders to do so.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Ashford Inc.&rsquo;s ability to exercise
significant influence over the determination of the competitive set for any hotels managed by Remington Hotels could artificially enhance
the perception of the performance of a hotel, making it more difficult to use managers other than Remington Hotels for future properties.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our hotel management mutual
exclusivity agreement with Remington requires us to engage Remington Hotels to manage all future properties that we acquire, to the extent
we have the right or control the right to direct such matters, unless our independent directors either: (i)&nbsp;unanimously vote not
to hire Remington Hotels or (ii)&nbsp;based on special circumstances or past performance, by a majority vote, elect not to engage Remington
Hotels because they have determined, in their reasonable business judgment, that it would be in our best interest not to engage Remington
Hotels or that another manager or developer could perform the duties materially better. Under our master hotel management agreement with
Remington Hotels, we have the right to terminate Remington Hotels based on the performance of the applicable hotel, subject to the payment
of a termination fee. The determination of performance is based on the applicable hotel&rsquo;s gross operating profit margin and its
RevPAR penetration index, which provides the relative revenue per room generated by a specified property as compared to its competitive
set. For each hotel managed by Remington Hotels, its competitive set will consist of a small group of hotels in the relevant market that
we and Remington Hotels believe are comparable for purposes of benchmarking the performance of such hotel. Remington Hotels will have
significant influence over the determination of the competitive set for any of our hotels managed by Remington Hotels, and as such could
artificially enhance the perception of the performance of a hotel by selecting a competitive set that is not performing well or is not
comparable to the Remington Hotels-managed hotel, thereby making it more difficult for us to elect not to use Remington Hotels for future
hotel management.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Under the terms of our hotel management
mutual exclusivity agreement with Remington Hotels, Remington Hotels may be able to pursue lodging investment opportunities that compete
with us.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Pursuant to the terms of
our hotel management mutual exclusivity agreement with Remington Hotels, if investment opportunities that satisfy our investment criteria
are identified by Remington Hotels or its affiliates, Remington Hotels will give us a written notice and description of the investment
opportunity. We will have 10 business days to either accept or reject the investment opportunity. If we reject the opportunity, Remington
Hotels may then pursue such investment opportunity, subject to a right of first refusal in favor of Braemar, pursuant to an existing
agreement between Braemar and Remington Hotels, on materially the same terms and conditions as offered to us. If we were to reject such
an investment opportunity, either Braemar or Remington Hotels could pursue the opportunity and compete with us. In such a case, Mr. Monty
J. Bennett, our chairman, in his capacity as chairman of Braemar or chief executive officer of Ashford Inc. could be in a position of
directly competing with us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our fiduciary duties as the general partner
of our operating partnership could create conflicts of interest, which may impede business decisions that could benefit our stockholders.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We, as the general partner
of our operating partnership, have fiduciary duties to the other limited partners in our operating partnership, the discharge of which
may conflict with the interests of our stockholders. The limited partners of our operating partnership have agreed that, in the event
of a conflict in the fiduciary duties owed by us to our stockholders and, in our capacity as general partner of our operating partnership,
to such limited partners, we are under no obligation to give priority to the interests of such limited partners. In addition, those persons
holding common&nbsp;units will have the right to vote on certain amendments to the operating partnership agreement (which require approval
by a majority in interest of the limited partners, including us) and individually to approve certain amendments that would adversely
affect their rights. These voting rights may be exercised in a manner that conflicts with the interests of our stockholders. For example,
we are unable to modify the rights of limited partners to receive distributions as set forth in the operating partnership agreement in
a manner that adversely affects their rights without their consent, even though such modification might be in the best interest of our
stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In addition, conflicts may
arise when the interests of our stockholders and the limited partners of our operating partnership diverge, particularly in circumstances
in which there may be an adverse tax consequence to the limited partners. Tax consequences to holders of common&nbsp;units upon a sale
or refinancing of our properties may cause the interests of the key employees of our advisor (who are also our executive officers and
have ownership interests in our operating partnership) to differ from our stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our conflicts of interest policy may not
adequately address all of the conflicts of interest that may arise with respect to our activities.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In order to avoid any actual
or perceived conflicts of interest with our directors or officers or our advisor&rsquo;s employees, we adopted a conflicts of interest
policy to address specifically some of the conflicts relating to our activities. Although under this policy the approval of a majority
of our disinterested directors is required to approve any transaction, agreement or relationship in which any of our directors or officers
or our advisor or it has an interest, there is no assurance that this policy will be adequate to address all of the conflicts that may
arise or will resolve such conflicts in a manner that is favorable to us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Risks Related to Derivative Transactions</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We have engaged in and may continue to
engage in derivative transactions, which can limit our gains and expose us to losses.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We have entered into and
may continue to enter into hedging transactions to: (i)&nbsp;attempt to take advantage of changes in prevailing interest rates; (ii)&nbsp;protect
our portfolio of mortgage assets from interest rate fluctuations; (iii)&nbsp;protect us from the effects of interest rate fluctuations
on floating-rate debt; (iv)&nbsp;protect us from the risk of fluctuations in the financial and capital markets; or (v)&nbsp;preserve
net cash in the event of a major downturn in the economy. Our hedging transactions may include entering into interest rate swap agreements,
interest rate cap or floor agreements or flooridor and corridor agreements, credit default swaps and purchasing or selling futures contracts,
purchasing or selling put and call options on securities or securities underlying futures contracts, or entering into forward rate agreements.
Hedging activities may not have the desired beneficial impact on our results of operations or financial condition. Volatile fluctuations
in market conditions could cause these instruments to become ineffective. Any gains or losses associated with these instruments are reported
in our earnings each period. No hedging activity can completely insulate us from the risks inherent in our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Credit default hedging could
fail to protect us or adversely affect us because if a swap counterparty cannot perform under the terms of our credit default swap, we
may not receive payments due under such agreement and, thus, we may lose any potential benefit associated with such credit default swap.
Additionally, we may also risk the loss of any cash collateral we have pledged to secure our obligations under such credit default swaps
if the counterparty becomes insolvent or files for bankruptcy.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Moreover, interest rate
hedging could fail to protect us or adversely affect us because, among other things:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">available
                                            interest rate hedging may not correspond directly with the interest rate risk for which protections
                                            is sought;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                    </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            duration of the hedge may not match the duration of the related liability;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                                       </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            party owing money in the hedging transaction may default on its obligation to pay;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                                               </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            credit quality of the party owing money on the hedge may be downgraded to such an extent
                                            that it impairs our ability to sell or assign our side of the hedging transaction; and</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            value of derivatives used for hedging may be adjusted from time to time in accordance with
                                            generally accepted accounting principles (&ldquo;GAAP&rdquo;) to reflect changes in fair
                                            value and such downward adjustments, or &ldquo;market-to-market loss,&rdquo; would reduce
                                            our stockholders&rsquo; equity.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Hedging involves both risks
and costs, including transaction costs, which may reduce our overall returns on our investments. These costs increase as the period covered
by the hedging relationship increases and during periods of rising and volatile interest rates. These costs will also limit the amount
of cash available for distributions to stockholders. We generally intend to hedge to the extent management determines it is in our best
interest given the cost of such hedging transactions as compared to the potential economic returns or protections offered. The REIT qualification
rules may limit our ability to enter into hedging transactions by requiring us to limit our income and assets from hedges. If we are
unable to hedge effectively because of the REIT rules, we will face greater interest rate exposure than may be commercially prudent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We are subject to the risk of default or
insolvency by the hospitality entities underlying our investments.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The leveraged capital structure
of the hospitality entities underlying our investments will increase their exposure to adverse economic factors (such as rising interest
rates, competitive pressures, downturns in the economy or deterioration in the condition of the real estate industry) and to the risk
of unforeseen events. If an underlying entity cannot generate adequate cash flow to meet such entity&rsquo;s debt obligations (which
may include leveraged obligations in excess of its aggregate assets), it may default on its loan agreements or be forced into bankruptcy.
As a result, we may suffer a partial or total loss of the capital we have invested in the securities and other investments of such entity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The derivatives provisions of the Dodd-Frank
Act and related rules could have an adverse effect on our ability to use derivative instruments to reduce the negative effect of interest
rate fluctuations on our results of operations and liquidity, credit default risks and other risks associated with our business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Dodd-Frank Wall Street
Reform and Consumer Protection Act (the &ldquo;Dodd-Frank Act&rdquo;) establishes federal oversight and regulation of the over-the-counter
derivatives market and entities, including us, that participate in that market. As required by the Dodd-Frank Act, the Commodities Futures
Trading Commission (the &ldquo;CFTC&rdquo;), the SEC and other regulators have adopted certain rules implementing the swaps regulatory
provisions of the Dodd-Frank Act and are in the process of adopting other rules to implement those provisions. Numerous provisions of
the Dodd-Frank Act and the CFTC&rsquo;s rules relating to derivatives that qualify as &ldquo;swaps&rdquo; thereunder apply or may apply
to the derivatives to which we are or may become a counterparty. Under such statutory provisions and the CFTC&rsquo;s rules, we must
clear on a derivatives clearing organization any over-the- counter swap we enter into that is within a class of swaps designated for
clearing by CFTC rule and execute trades in such cleared swap on an exchange if the swap is accepted for trading on the exchange unless
such swap is exempt from such mandatory clearing and trade execution requirements. We may qualify for and intend to elect the end-user
exception from those requirements for swaps we enter to hedge our commercial risks and that are subject to the mandatory clearing and
trade execution requirements. If we are required to clear or voluntarily elect to clear any swaps we enter into, those swaps will be
governed by standardized agreements and we will have to post margin with respect to such swaps. To date, the CFTC has designated only
certain types of interest rate swaps and credit default swaps for clearing and trade execution. Although we believe that none of the
interest rate swaps and credit default swaps to which we are currently party fall within those designated types of swaps, we may enter
into swaps in the future that will be subject to the mandatory clearing and trade execution requirements and subject to the risks described.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Rules recently adopted by
banking regulators and the CFTC in accordance with a requirement of the Dodd-Frank Act require regulated financial institutions and swap
dealers and major swap participants that are not regulated financial institutions to collect margin with respect to uncleared swaps to
which they are parties and to which financial end users, among others, are their counterparties. We will qualify as a financial end user
for purposes of such margin rules. We will not have to post initial margin with respect to our uncleared swaps under the new rules because
we do not have material swaps exposure as defined in the new rules. However, we will be required to post variation margin (most likely
in the form of cash collateral) with respect to each of our uncleared swaps subject to the new margin rules in an amount equal to the
cumulative decrease in the market-to-market value of such swap to our counterparty as of any date of determination from the value of
such swap as of the date of the swap&rsquo;s execution. The SEC has proposed margin rules for security-based swaps to which regulated
financial institutions are not counterparties. Those proposed rules differ from the CFTC&rsquo;s margin rules, but the final form that
those rules will take and their effect is uncertain at this time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Dodd-Frank Act has caused
certain market participants, and may cause other market participants, including the counterparties to our derivative instruments, to
spin off some of their derivatives activities to separate entities. Those entities may not be as creditworthy as the historical counterparties
to our derivatives.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Some of the rules required
to implement the swaps-related provisions of the Dodd-Frank Act remain to be adopted, and the CFTC has, from time to time, issued and
may in the future issue interpretations and no-action letters interpreting, and clarifying the application of, those provisions and the
related rules or delaying compliance with those provisions and rules. As a result, it is not possible at this time to predict with certainty
the full effects of the Dodd-Frank Act, the CFTC&rsquo;s rules and the SEC&rsquo;s rules on us and the timing of such effects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Dodd-Frank Act and the
rules adopted thereunder could significantly increase the cost of derivative contracts (including from swap recordkeeping and reporting
requirements and through requirements to post margin with respect to our swaps, which could adversely affect our available liquidity),
materially alter the terms of derivative contracts, reduce the availability of derivatives to protect against risks we encounter, reduce
our ability to monetize or restructure our existing derivative contracts, and increase our exposure to less creditworthy counterparties.
If we reduce our use of derivatives as a result of the Dodd-Frank Act and the related rules, our results of operations may become more
volatile and our cash flows may be less predictable, which could adversely affect our ability to plan for and fund capital expenditures
and to pay dividends to our stockholders. Any of these consequences could have a material adverse effect on our consolidated financial
position, results of operations and cash flows.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Risks Related to Investments in
Securities, Mortgages and Mezzanine Loans</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our earnings are dependent, in part, upon
the performance of our investment portfolio.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">To the extent permitted
by the Code, we may invest in and own securities of other public companies and REITs (including Braemar). To the extent that the value
of those investments declines or those investments do not provide an attractive return, our earnings and cash flow could be adversely
affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Debt investments that are not United States
government insured involve risk of loss.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">As part of our business
strategy, we may originate or acquire lodging-related uninsured and mortgage assets, including mezzanine loans. While holding these interests,
we are subject to risks of borrower defaults, bankruptcies, fraud and related losses, and special hazard losses that are not covered
by standard hazard insurance. Also, costs of financing the mortgage loans could exceed returns on the mortgage loans. In the event of
any default under mortgage loans held by us, we will bear the risk of loss of principal and non-payment of interest and fees to the extent
of any deficiency between the value of the mortgage collateral and the principal amount of the mortgage loan. We suffered significant
impairment charges with respect to our investments in mortgage loans in 2009 and 2010. The value and the price of our securities may
be adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We may invest in non-recourse loans, which
will limit our recovery to the value of the mortgaged property.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our mortgage and mezzanine
loan assets have typically been non-recourse. With respect to non-recourse mortgage loan assets, in the event of a borrower default,
the specific mortgaged property and other assets, if any, pledged to secure the relevant mortgage loan, may be less than the amount owed
under the mortgage loan. As to those mortgage loan assets that provide for recourse against the borrower and its assets generally, we
cannot assure you that the recourse will provide a recovery in respect of a defaulted mortgage loan greater than the liquidation value
of the mortgaged property securing that mortgage loan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Investment yields affect our decision whether
to originate or purchase investments and the price offered for such investments.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In making any investment,
we consider the expected yield of the investment and the factors that may influence the yield actually obtained on such investment. These
considerations affect our decision whether to originate or purchase an investment and the price offered for that investment. No assurances
can be given that we can make an accurate assessment of the yield to be produced by an investment. Many factors beyond our control are
likely to influence the yield on the investments, including, but not limited to, competitive conditions in the local real estate market,
local and general economic conditions, and the quality of management of the underlying property. Our inability to accurately assess investment
yields may result in our purchasing assets that do not perform as well as expected, which may adversely affect the price of our securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Volatility of values of mortgaged properties
may adversely affect our mortgage loans.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Lodging property values
and net operating income derived from lodging properties are subject to volatility and may be affected adversely by a number of factors,
including the risk factors described herein relating to general economic conditions, operating lodging properties, and owning real estate
investments. In the event its net operating income decreases, one of our borrowers may have difficulty paying our mortgage loan, which
could result in losses to us. In addition, decreases in property values will reduce the value of the collateral and the potential proceeds
available to our borrowers to repay our mortgage loans, which could also cause us to suffer losses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We may not be able to raise capital through
financing activities and may have difficulties negotiating with lenders in times of distress due to our complex structure and property-level
indebtedness.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Substantially all of our
assets are encumbered by property-level indebtedness; therefore, we may be limited in our ability to raise additional capital through
property level or other financings. In addition, our ability to raise additional capital could be limited to refinancing existing secured
mortgages before their maturity date which may result in yield maintenance or other prepayment penalties to the extent that the mortgage
is not open for prepayment at par. Due to these limitations on our ability to raise additional capital, we may face difficulties obtaining
liquidity and negotiating with lenders in times of distress.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Mezzanine loans involve greater risks of
loss than senior loans secured by income-producing properties.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We may make and acquire
mezzanine loans. These types of loans are considered to involve a higher degree of risk than long-term senior mortgage lending secured
by income-producing real property due to a variety of factors, including the loan being entirely unsecured or, if secured, becoming unsecured
as a result of foreclosure by the senior lender. We may not recover some or all of our investment in these loans. In addition, mezzanine
loans may have higher loan-to-value ratios than conventional mortgage loans resulting in less equity in the property and increasing the
risk of loss of principal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The assets associated with certain of our
derivative transactions do not constitute qualified REIT assets and the related income will not constitute qualified REIT income. Significant
fluctuations in the value of such assets or the related income could jeopardize our REIT status or result in additional tax liabilities.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We have entered into certain
derivative transactions to protect against interest rate risks and credit default risks not specifically associated with debt incurred
to acquire qualified REIT assets. The REIT provisions of the Code limit our income and assets in each year from such derivative transactions.
Failure to comply with the asset or income limitation within the REIT provisions of the Code could result in penalty taxes or loss of
our REIT status. If we elect to contribute the non-qualifying derivatives into a TRS to preserve our REIT status, such an action would
result in any income from such transactions being subject to U.S. federal income taxation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our prior investment performance is not
indicative of future results.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The performance of our prior
investments is not necessarily indicative of the results that can be expected for the investments to be made by our subsidiaries. On
any given investment, total loss of the investment is possible. Although our management team has experience and has had success in making
investments in real estate-related lodging debt and hotel assets, the past performance of these investments is not necessarily indicative
of the results of our future investments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our investment portfolio will contain investments
concentrated in a single industry and will not be fully diversified.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We have formed subsidiaries
for the primary purpose of acquiring securities and other investments of lodging-related entities. As such, our investment portfolio
will contain investments concentrated in a single industry and may not be fully diversified by asset class, geographic region or other
criteria, which will expose us to significant loss due to concentration risk. Investors have no assurance that the degree of diversification
in our investment portfolio will increase at any time in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The values of our investments are affected
by the U.S. credit and financial markets and, as such, may fluctuate.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The U.S. credit and financial
markets may experience severe dislocations and liquidity disruptions. The values of our investments are likely to be sensitive to the
volatility of the U.S. credit and financial markets, and, to the extent that turmoil in the U.S. credit and financial markets occurs,
such volatility has the potential to materially affect the value of our investment portfolio.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We may invest in securities for which there
is no liquid market, and we may be unable to dispose of such securities at the time or in the manner that may be most favorable to us,
which may adversely affect our business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We may invest in securities
for which there is no liquid market or which may be subject to legal and other restrictions on resale or otherwise be less liquid than
publicly traded securities generally. The relative illiquidity of these investments may make it difficult for us to sell these investments
when desired. In addition, if we are required to liquidate all or a portion of our portfolio quickly, we may realize significantly less
than the value at which we had previously recorded these investments. Our investments may occasionally be subject to contractual or legal
restrictions on resale or will be otherwise illiquid due to the fact that there is no established trading market for such securities,
or such trading market is thinly traded. The relative illiquidity of such investments may make it difficult for us to dispose of them
at a favorable price, and, as a result, we may suffer losses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Risks Related to the Real Estate
Industry</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Illiquidity of real estate investments
could significantly impede our ability to respond to adverse changes in the performance of our hotel properties and harm our financial
condition.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Because real estate investments
are relatively illiquid, our ability to sell promptly one or more hotel properties or mortgage loans in our portfolio for reasonable
prices in response to changing economic, financial, and investment conditions is limited.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We may decide to sell hotel
properties or loans in the future. We cannot predict whether we will be able to sell any hotel property or loan for the price or on the
terms set by us, or whether any price or other terms offered by a prospective purchaser would be acceptable to us. We may sell a property
at a loss as compared to carrying value. We also cannot predict the length of time needed to find a willing purchaser and to close the
sale of a hotel property or loan. We may offer more flexible terms on our mortgage loans than some providers of commercial mortgage loans,
and as a result, we may have more difficulty selling or participating our loans to secondary purchasers than would these more traditional
lenders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We may be required to expend
funds to correct defects or to make improvements before a property can be sold. We cannot assure you that we will have funds available
to correct those defects or to make those improvements. In acquiring a hotel property, we may agree to lock-out provisions that materially
restrict us from selling that property for a period of time or impose other restrictions, such as a limitation on the amount of debt
that can be placed or repaid on that property. These and other factors could impede our ability to respond to adverse changes in the
performance of our hotel properties or a need for liquidity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Increases in property taxes would increase
our operating costs, reduce our income and adversely affect our ability to make distributions to our stockholders.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Each of our hotel properties
will be subject to real and personal property taxes. These taxes may increase as tax rates change and as the properties are assessed
or reassessed by taxing authorities. If property taxes increase, our financial condition, results of operations and our ability to make
distributions to our stockholders could be materially and adversely affected and the market price of our Common Stock and/or Preferred
Stock could decline.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The costs of compliance with or liabilities
under environmental laws may harm our operating results.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Operating expenses at our
hotels could be higher than anticipated due to the cost of complying with existing or future environmental laws and regulations. In addition,
our hotel properties and properties underlying our loan assets may be subject to environmental liabilities. An owner of real property,
or a lender with respect to a party that exercises control over the property, can face liability for environmental contamination created
by the presence or discharge of hazardous substances on the property. We may face liability regardless of:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our
                                            knowledge of the contamination;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                            </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            timing of the contamination;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                         </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            cause of the contamination; or</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                           </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            party responsible for the contamination.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">There may be environmental
problems associated with our hotel properties or properties underlying our loan assets of which we are unaware. Some of our hotel properties
or the properties underlying our loan assets use, or may have used in the past, underground tanks for the storage of petroleum-based
or waste products that could create a potential for release of hazardous substances. If environmental contamination exists on a hotel
property, we could become subject to strict, joint and several liabilities for the contamination if we own the property or if we foreclose
on the property or otherwise have control over the property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The presence of hazardous
substances on a property we own or have made a loan with respect to may adversely affect our ability to sell, on favorable terms or at
all, or foreclose on the property, and we may incur substantial remediation costs. The discovery of material environmental liabilities
at our properties or properties underlying our loan assets could subject us to unanticipated significant costs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We generally have environmental
insurance policies on each of our owned properties, and we intend to obtain environmental insurance for any other properties that we
may acquire. However, if environmental liabilities are discovered during the underwriting of the insurance policies for any property
that we may acquire in the future, we may be unable to obtain insurance coverage for the liabilities at commercially reasonable rates
or at all, and we may experience losses. In addition, we generally do not require our borrowers to obtain environmental insurance on
the properties they own that secure their loans from us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Numerous treaties, laws
and regulations have been enacted to regulate or limit carbon emissions. Changes in the regulations and legislation relating to climate
change, and complying with such laws and regulations, may require us to make significant investments in our hotels and could result in
increased energy costs at our properties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our properties and the properties underlying
our mortgage loans may contain or develop harmful mold, which could lead to liability for adverse health effects and costs of remediating
the problem.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">When excessive moisture
accumulates in buildings or on building materials, mold growth may occur, particularly if the moisture problem remains undiscovered or
is not addressed over a period of time. Some molds may produce airborne toxins or irritants. Concern about indoor exposure to mold has
been increasing as exposure to mold may cause a variety of adverse health effects and symptoms, including allergic or other reactions.
Some of the properties in our portfolio may contain microbial matter such as mold and mildew. As a result, the presence of significant
mold at any of our properties or the properties underlying our loan assets could require us or our borrowers to undertake a costly remediation
program to contain or remove the mold from the affected property. In addition, the presence of significant mold could expose us or our
borrowers to liability from hotel guests, hotel employees, and others if property damage or health concerns arise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Compliance with the ADA and fire, safety,
and other regulations may require us or our borrowers to incur substantial costs.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">All of our properties and
properties underlying our mortgage loans are required to comply with the ADA. The ADA requires that &ldquo;public accommodations&rdquo;
such as hotels be made accessible to people with disabilities. Compliance with the ADA&rsquo;s requirements could require removal of
access barriers and non-compliance could result in imposition of fines by the U.S. government or an award of damages to private litigants,
or both. In addition, we and our borrowers are required to operate our properties in compliance with fire and safety regulations, building
codes, and other land use regulations as they may be adopted by governmental agencies and bodies and become applicable to our properties.
Any requirement to make substantial modifications to our hotel properties, whether to comply with the ADA or other changes in governmental
rules and regulations, could be costly.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We may obtain only limited warranties when
we purchase a property and would have only limited recourse if our due diligence did not identify any issues that lower the value of
our property, which could adversely affect our financial condition and ability to make distributions to our stockholders.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We may acquire a hotel property
in its &ldquo;as is&rdquo; condition on a &ldquo;where is&rdquo; basis and &ldquo;with all faults,&rdquo; without any warranties of merchantability
or fitness for a particular use or purpose. In addition, purchase agreements may contain only limited warranties, representations and
indemnifications that will only survive for a limited period after the closing, or provide a cap on the amount of damages we can recover.
The purchase of properties with limited warranties increases the risk that we may lose some or all our invested capital in the property
as well as the loss of income from that property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We may experience uninsured or underinsured
losses.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We have property and casualty
insurance with respect to our hotel properties and other insurance, in each case, with loss limits and coverage thresholds deemed reasonable
by our management team (and with the intent to satisfy the requirements of lenders and franchisors). In doing so, we have made decisions
with respect to what deductibles, policy limits, and terms are reasonable based on management&rsquo;s experience, our risk profile, the
loss history of our hotel managers and our properties, the nature of our properties and our businesses, our loss prevention efforts,
the cost of insurance and other factors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Various types of catastrophic
losses may not be insurable or may not be economically insurable. In the event of a substantial loss, our insurance coverage may not
cover the full current market value or replacement cost of our lost investment, including losses incurred in relation to the COVID-19
pandemic. Inflation, changes in building codes and ordinances, environmental considerations, and other factors might cause insurance
proceeds to be insufficient to fully replace or renovate a hotel after it has been damaged or destroyed. Accordingly, there can be no
assurance that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            insurance coverage thresholds that we have obtained will fully protect us against insurable
                                            losses (<I>i.e</I>., losses may exceed coverage limits);</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                           </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">we
                                            will not incur large deductibles that will adversely affect our earnings;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                                     </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">we
                                            will not incur losses from risks that are not insurable or that are not economically insurable;
                                            or</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                                                              </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">current
                                            coverage thresholds will continue to be available at reasonable rates.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In the future, we may choose
not to maintain terrorism or other insurance policies on any of our properties. As a result, one or more large uninsured or underinsured
losses could have a material adverse effect on us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Each of our current lenders
requires us to maintain certain insurance coverage thresholds, and we anticipate that future lenders will have similar requirements.
We believe that we have complied with the insurance maintenance requirements under the current governing loan documents and we intend
to comply with any such requirements in any future loan documents. However, a lender may disagree, in which case the lender could obtain
additional coverage thresholds and seek payment from us, or declare us in default under the loan documents. In the former case, we could
spend more for insurance than we otherwise deem reasonable or necessary or, in the latter case, subject us to a foreclosure on hotels
securing one or more loans.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In addition, a material
casualty to one or more hotels securing loans may result in the insurance company applying to the outstanding loan balance insurance
proceeds that otherwise would be available to repair the damage caused by the casualty, which would require us to fund the repairs through
other sources, or the lender foreclosing on the hotels if there is a material loss that is not insured.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Risks Related to Our Status as
a REIT</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>If we do not qualify as a REIT, we will
be subject to tax as a regular corporation and could face substantial tax liability.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We conduct operations so
as to qualify as a REIT under the Code. However, qualification as a REIT involves the application of highly technical and complex Code
provisions for which only a limited number of judicial or administrative interpretations exist. Even a technical or inadvertent mistake
could jeopardize our REIT status or we may be required to rely on a REIT &ldquo;savings clause.&rdquo; If we were to rely on a REIT &ldquo;savings
clause,&rdquo; we would have to pay a penalty tax, which could be material. Due to the gain we recognized as a result of the spin-off
of Braemar, if Braemar were to fail to qualify as a REIT for 2013, we may have failed to qualify as a REIT for 2013 and subsequent taxable
years. Furthermore, new tax legislation, administrative guidance, or court decisions, in each instance potentially with retroactive effect,
could make it more difficult or impossible for us to qualify as a REIT.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">If we fail to qualify as
a REIT in any tax year, then:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">we
                                            would be taxed as a regular domestic corporation, which, among other things, means being
                                            unable to deduct distributions to our stockholders in computing taxable income and being
                                            subject to U.S. federal income tax on our taxable income at regular corporate rates;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                     </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">we
                                            would also be subject to federal alternative minimum tax for taxable years beginning before
                                            January&nbsp;1, 2018, and, possibly, increased state and local income taxes;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                      </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">any
                                            resulting tax liability could be substantial and would reduce the amount of cash available
                                            for distribution to stockholders; and</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                              </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">unless
                                            we were entitled to relief under applicable statutory provisions, we would be disqualified
                                            from treatment as a REIT for the subsequent four taxable years following the year that we
                                            lost our qualification, and, thus, our cash available for distribution to stockholders could
                                            be reduced for each of the years during which we did not qualify as a REIT.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">If, as a result of covenants
applicable to our future debt, we are restricted from making distributions to our stockholders, we may be unable to make distributions
necessary for us to avoid U.S. federal corporate income and excise taxes and to qualify and maintain our qualification as a REIT, which
could materially and adversely affect us. In addition, if we fail to qualify as a REIT, we will not be required to make distributions
to stockholders to maintain our tax status. As a result of all of these factors, our failure to qualify as a REIT could impair our ability
to raise capital, expand our business, and make distributions to our stockholders and could adversely affect the value of our securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Even if we qualify and remain qualified
as a REIT, we may face other tax liabilities that reduce our cash flow.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Even if we qualify and remain
qualified for taxation as a REIT, we may be subject to certain federal, state, and local taxes on our income and assets. For example:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">We
                                            will be required to pay tax on undistributed REIT taxable income.</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                             </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">If
                                            we have net income from the disposition of foreclosure property held primarily for sale to
                                            customers in the ordinary course of business or other non-qualifying income from foreclosure
                                            property, we must pay tax on that income at the highest corporate rate.</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                         </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">If
                                            we sell a property in a &ldquo;prohibited transaction,&rdquo; our gain from the sale would
                                            be subject to a 100% penalty tax.</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Each
                                            of our TRSs is a fully taxable corporation and will be subject to federal and state taxes
                                            on its income.</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                 </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">We
                                            may continue to experience increases in our state and local income tax burden. Over the past
                                            several years, certain state and local taxing authorities have significantly changed their
                                            income tax regimes in order to raise revenues. The changes enacted that have increased our
                                            state and local income tax burden include the taxation of modified gross receipts (as opposed
                                            to net taxable income), the suspension of and/or limitation on the use of net operating loss
                                            deductions, increases in tax rates and fees, the addition of surcharges, and the taxation
                                            of our partnership income at the entity level. Facing mounting budget deficits, more state
                                            and local taxing authorities have indicated that they are going to revise their income tax
                                            regimes in this fashion and/or eliminate certain federally allowed tax deductions such as
                                            the REIT dividends paid deduction.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Failure to make required distributions
would subject us to U.S. federal corporate income tax.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We intend to operate in
a manner that allows us to continue to qualify as a REIT for U.S. federal income tax purposes. In order to continue to qualify as a REIT,
we generally are required to distribute at least 90% of our REIT taxable income, determined without regard to the dividends paid deduction
and excluding any net capital gain, each year to our stockholders. To the extent that we satisfy this distribution requirement, but distribute
less than 100% of our REIT taxable income, we will be subject to U.S. federal corporate income tax on our undistributed taxable income.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, we will be subject to a 4% nondeductible
excise tax if the actual amount that we pay out to our stockholders in a calendar year is less than a minimum amount specified under
the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our TRS lessee structure increases our
overall tax liability.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our TRS lessees are subject
to federal, state and local income tax on their taxable income, which consists of the revenues from the hotel properties leased by our
TRS lessees, net of the operating expenses for such hotel properties and rent payments to us. Accordingly, although our ownership of
our TRS lessees allows us to participate in the operating income from our hotel properties in addition to receiving fixed rent, the net
operating income is fully subject to income tax. The after-tax net income of our TRS lessees is available for distribution to us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>If our leases with our TRS lessees are
not respected as true leases for U.S. federal income tax purposes, we would fail to qualify as a REIT.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">To qualify as a REIT, we
are required to satisfy two gross income tests, pursuant to which specified&nbsp;percentages of our gross income must be passive income,
such as rent. For the rent paid pursuant to the hotel leases with our TRS lessees, which constitutes substantially all of our gross income,
to qualify for purposes of the gross income tests, the leases must be respected as true leases for U.S. federal income tax purposes and
must not be treated as service contracts, joint ventures or some other type of arrangement. We have structured our leases, and intend
to structure any future leases, so that the leases will be respected as true leases for U.S. federal income tax purposes, but the IRS
may not agree with this characterization. If the leases were not respected as true leases for U.S. federal income tax purposes, we would
not be able to satisfy either of the two gross income tests applicable to REITs and likely would fail to qualify as a REIT.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our ownership of TRSs is limited and our
transactions with our TRSs will cause us to be subject to a 100% penalty tax on certain income or deductions if those transactions are
not conducted on arm&rsquo;s-length terms.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">A REIT may own up to 100%
of the stock of one or more TRSs. A TRS may hold assets and earn income that would not be qualifying assets or income if held or earned
directly by a REIT, including gross operating income from hotels that are operated by eligible independent contractors pursuant to hotel
management agreements. Both the subsidiary and the REIT must jointly elect to treat the subsidiary as a TRS. A corporation of which a
TRS directly or indirectly owns more than 35% of the voting power or value of the stock will automatically be treated as a TRS. Overall,
no more than 20% of the value of a REIT&rsquo;s assets may consist of stock or securities of one or more TRSs. In addition, the TRS rules
limit the deductibility of interest paid or accrued by a TRS to its parent REIT to assure that the TRS is subject to an appropriate level
of corporate taxation. The rules also impose a 100% excise tax on certain transactions between a TRS and its parent REIT that are not
conducted on an arm&rsquo;s-length basis. Finally, the 100% excise tax also applies to the underpricing of services by a TRS to its parent
REIT in contexts where the services are unrelated to services for REIT tenants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our TRSs are subject to
federal, foreign, state and local income tax on their taxable income, and their after-tax net income is available for distribution to
us but is not required to be distributed to us. We believe that the aggregate value of the stock and securities of our TRSs is less than
20% of the value of our total assets (including our TRS stock and securities).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We monitor the value of
our respective investments in our TRSs for the purpose of ensuring compliance with TRS ownership limitations. In addition, we scrutinize
all of our transactions with our TRSs to ensure that they are entered into on arm&rsquo;s-length terms to avoid incurring the 100% excise
tax described above. For example, in determining the amounts payable by our TRSs under our leases, we engaged a third party to prepare
transfer pricing studies to ascertain whether the lease terms we established are on an arm&rsquo;s-length basis as required by applicable
Treasury Regulations. However the receipt of a transfer pricing study does not prevent the IRS from challenging the arm&rsquo;s length
nature of the lease terms between a REIT and its TRS lessees. Consequently, there can be no assurance that we will be able to avoid application
of the 100% excise tax discussed above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>If our hotel managers, including Ashford
Hospitality Services, LLC and its subsidiaries (including Remington Hotels) do not qualify as &ldquo;eligible independent contractors,&rdquo;
we would fail to qualify as a REIT.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Rent paid by a lessee that
is a &ldquo;related party tenant&rdquo; of ours is not qualifying income for purposes of the two gross income tests applicable to REITs.
We lease all of our hotels to our TRS lessees. A TRS lessee will not be treated as a &ldquo;related party tenant,&rdquo; and will not
be treated as directly operating a lodging facility, which is prohibited, to the extent the TRS lessee leases properties from us that
are managed by an &ldquo;eligible independent contractor.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We believe that the rent
paid by our TRS lessees is qualifying income for purposes of the REIT gross income tests and that our TRSs qualify to be treated as TRSs
for U.S. federal income tax purposes, but there can be no assurance that the IRS will not challenge this treatment or that a court would
not sustain such a challenge. If we failed to meet either the asset or gross income tests, we would likely lose our REIT qualification
for U.S. federal income tax purposes, unless certain of the REIT &ldquo;savings clauses&rdquo; applied.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">If our hotel managers, including
Ashford Hospitality Services, LLC (&ldquo;AHS&rdquo;) and its subsidiaries (including Remington Hotels), do not qualify as &ldquo;eligible
independent contractors,&rdquo; we would fail to qualify as a REIT. Each of the hotel management companies that enters into a management
contract with our TRS lessees must qualify as an &ldquo;eligible independent contractor&rdquo; under the REIT rules in order for the
rent paid to us by our TRS lessees to be qualifying income for our REIT income test requirements. Among other requirements, in order
to qualify as an eligible independent contractor a manager must not own more than 35% of our outstanding shares (by value) and no person
or group of persons can own more than 35% of our outstanding shares and the ownership interests of the manager, taking into account only
owners of more than 5% of our shares and, with respect to ownership interests in such managers that are publicly-traded, only holders
of more than 5% of such ownership interests. Complex ownership attribution rules apply for purposes of these 35% thresholds. Although
we intend to monitor ownership of our shares by our hotel managers and their owners, there can be no assurance that these ownership levels
will not be exceeded. Additionally, we and AHS and its subsidiaries, including Remington Hotels, must comply with the provisions of the
private letter ruling we obtained from the IRS in connection with Ashford Inc.&rsquo;s acquisition of Remington Hotels to ensure that
AHS and its subsidiaries, including Remington Hotels, continue to qualify as &ldquo;eligible independent contractors.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Dividends payable by REITs do not qualify
for the reduced tax rates available for some dividends.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The maximum U.S. federal
income tax rate applicable to &ldquo;qualified dividend income&rdquo; payable to U.S.&nbsp;stockholders that are taxed at individual
rates is 20%. Dividends payable by REITs, however, generally are not eligible for this reduced maximum rate on qualified dividend income.
However, under the Tax Cuts and Jobs Act a non-corporate taxpayer may deduct 20% of ordinary REIT dividends that are not &ldquo;capital
gain dividends&rdquo; or &ldquo;qualified dividend income&rdquo; resulting in an effective maximum U.S. federal income tax rate of 29.6%
(based on the current maximum U.S. federal income tax rate for individuals of 37%). Individuals, trusts and estates whose income exceeds
certain thresholds are also subject to a 3.8% Medicare tax on dividends received from us. The more favorable rates applicable to regular
corporate qualified dividends could cause investors who are taxed at individual rates to perceive investments in REITs to be relatively
less attractive than investments in the stocks of non-REIT corporations that pay dividends, which could adversely affect the value of
the shares of REITs, including our stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>If our operating partnership failed to
qualify as a partnership for U.S. federal income tax purposes, we would cease to qualify as a REIT and would be subject to higher taxes
and have less cash available for distribution to our stockholders and suffer other adverse consequences.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We believe that our operating
partnership qualifies to be treated as a partnership for U.S. federal income tax purposes. As a partnership, our operating partnership
is not subject to U.S. federal income tax on its income. Instead, each of its partners, including us, is required to include in income
its allocable share of the operating partnership&rsquo;s income. No assurance can be provided, however, that the IRS will not challenge
its status as a partnership for U.S. federal income tax purposes, or that a court would not sustain such a challenge. If the IRS were
successful in treating our operating partnership as a corporation for tax purposes, we would fail to meet the gross income tests and
certain of the asset tests applicable to REITs and, accordingly, cease to qualify as a REIT. Also, the failure of our operating partnership
to qualify as a partnership would cause it to become subject to federal and state corporate income tax, which would reduce significantly
the amount of cash available for debt service and for distribution to its partners, including us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Note that although partnerships
have traditionally not been subject to U.S. federal income tax at the entity level as described above, new audit rules, will generally
apply to the partnership. Under the new rules, unless an entity elects otherwise, taxes arising from audit adjustments are required to
be paid by the entity rather than by its partners or members. We may utilize exceptions available under the new provisions (including
any changes) and Treasury Regulations so that the partners, to the fullest extent possible, rather than the partnership itself, will
be liable for any taxes arising from audit adjustments to the issuing entity&rsquo;s taxable income. One such exception is to apply an
elective alternative method under which the additional taxes resulting from the adjustment are assessed from the affected partners (often
referred to as a &ldquo;push-out election&rdquo;), subject to a higher rate of interest than otherwise would apply. When a push-out election
causes a partner that is itself a partnership to be assessed with its share of such additional taxes from the adjustment, such partnership
may cause such additional taxes to be pushed out to its own partners. In addition, Treasury Regulations provide that a partner that is
a REIT may be able to use deficiency dividend procedures with respect to such adjustments. Many questions remain as to how the partnership
audit rules will apply, and it is not clear at this time what effect these rules will have on us. However, it is possible that these
changes could increase the U.S. federal income tax, interest, and/or penalties otherwise borne by us in the event of a U.S. federal income
tax audit of a subsidiary partnership (such as our operating partnership).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Complying with REIT requirements may cause
us to forgo otherwise attractive opportunities.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">To qualify as a REIT for
U.S. federal income tax purposes, we must continually satisfy tests concerning, among other things, the sources of our income, the nature
and diversification of our assets, the amounts we distribute to our stockholders, and the ownership of our stock. We may be required
to make distributions to stockholders at disadvantageous times or when we do not have funds readily available for distribution. We may
elect to pay dividends on our Common Stock in cash or a combination of cash and shares of securities as permitted under U.S. federal
income tax laws governing REIT distribution requirements. Thus, compliance with the REIT requirements may hinder our ability to operate
solely on the basis of maximizing profits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Complying with REIT requirements may limit
our ability to hedge effectively.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The REIT provisions of the
Code may limit our ability to hedge mortgage securities and related borrowings by requiring us to limit our income and assets in each
year from certain hedges, together with any other income not generated from qualified real estate assets, to no more than 25% of our
gross income. In addition, we must limit our aggregate income from nonqualified hedging transactions, from our provision of services,
and from other non-qualifying sources to no more than 5% of our annual gross income. As a result, we may have to limit our use of advantageous
hedging techniques. This could result in greater risks associated with changes in interest rates than we would otherwise want to incur.
However, for transactions that we enter into to protect against interest rate risks on debt incurred to acquire qualified REIT assets
and for which we identify as hedges for tax purposes, any associated hedging income is excluded from the 95% income test and the 75%
income test applicable to a REIT. In addition, similar rules apply to income from positions that primarily manage risk with respect to
a prior hedge entered into by a REIT in connection with the extinguishment or disposal (in whole or in part) of the liability or asset
related to such prior hedge, to the extent the new position qualifies as a hedge or would so qualify if the hedged position were ordinary
property. If we were to violate the 25% or 5% limitations, we may have to pay a penalty tax equal to the amount of income in excess of
those limitations multiplied by a fraction intended to reflect our profitability. If we fail to satisfy the REIT gross income tests,
unless our failure was due to reasonable cause and not due to willful neglect such that a REIT &ldquo;savings clause&rdquo; applied,
we could lose our REIT status for U.S. federal income tax purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Complying with REIT requirements may force
us to liquidate otherwise attractive investments.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">To qualify as a REIT, we
must also ensure that at the end of each calendar quarter at least 75% of the value of our assets consists of cash, cash items, government
securities, and qualified REIT real estate assets. The remainder of our investment in securities (other than government securities and
qualified real estate assets) generally cannot include more than 10% of the outstanding voting securities of any one issuer or more than
10% of the total value of the outstanding securities of any one issuer. In addition, in general, no more than 5% of the value of our
assets (other than government securities and qualified real estate assets) can consist of the securities of any one issuer, and no more
than 20% of the value of our total assets can be represented by securities of one or more TRSs, and no more than 25% of the value of
our total assets can be represented by certain publicly offered REIT debt instruments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">If we fail to comply with
these requirements at the end of any calendar quarter, we must correct such failure within 30&nbsp;days after the end of the calendar
quarter to avoid losing our REIT status and suffering adverse tax consequences. As a result, we may be required to liquidate otherwise
attractive investments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Complying with REIT requirements may force
us to borrow to make distributions to our stockholders.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">As a REIT, we must distribute
at least 90% of our annual REIT taxable income, excluding net capital gains, (subject to certain adjustments) to our stockholders. To
the extent that we satisfy the distribution requirement, but distribute less than 100% of our taxable income, we will be subject to federal
corporate income tax on our undistributed taxable income. In addition, we will be subject to a 4% nondeductible excise tax if the actual
amount that we pay out to our stockholders in a calendar year is less than a minimum amount specified under federal tax laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">From time to time, we may
generate taxable income greater than our net income for financial reporting purposes or our taxable income may be greater than our cash
flow available for distribution to our stockholders. If we do not have other funds available in these situations, we could be required
to borrow funds, sell investments at disadvantageous prices, or find another alternative source of funds to make distributions sufficient
to enable us to pay out enough of our taxable income to satisfy the distribution requirement and to avoid corporate income tax and the
4% excise tax in a particular year. These alternatives could increase our costs or reduce the value of our equity. We may elect to pay
dividends on our Common Stock in cash or a combination of cash and shares of securities as permitted under U.S. federal income tax laws
governing REIT distribution requirements. To the extent that we make distributions in excess of our current and accumulated earnings
and profits (as determined for U.S. federal income tax purposes), such distributions would generally be considered a return of capital
for U.S. federal income tax purposes to the extent of the holder&rsquo;s adjusted tax basis in its shares. A return of capital is not
taxable, but it has the effect of reducing the holder&rsquo;s adjusted tax basis in its investment. To the extent that distributions
exceed the adjusted tax basis of a holder&rsquo;s shares, they will be treated as gain from the sale or exchange of such stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We may in the future choose to pay taxable
dividends in our shares of our Common Stock instead of cash, in which case stockholders may be required to pay income taxes in excess
of the cash dividends they receive.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We may distribute taxable
dividends that are payable in cash and Common Stock at the election of each stockholder, subject to certain limitations, including that
the cash portion be at least 20% of the total distribution.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">If we make a taxable dividend
payable in cash and Common Stock, taxable stockholders receiving such dividends will be required to include the full amount of the dividend
as ordinary income to the extent of our current and accumulated earnings and profits, as determined for U.S. federal income tax purposes.
As a result, stockholders may be required to pay income taxes with respect to such dividends in excess of the cash dividends received.
If a U.S. stockholder sells the shares of Common Stock that it receives as a dividend in order to pay this tax, the sales proceeds may
be less than the amount included in income with respect to the dividend, depending on the market price of our Common Stock at the time
of the sale. Furthermore, with respect to certain non-U.S. stockholders, we may be required to withhold U.S. federal income tax with
respect to such dividends, including in respect of all or a portion of such dividend that is payable in shares of Common Stock. In addition,
if we made a taxable dividend payable in cash and our Common Stock and a significant number of our stockholders determine to sell shares
of our Common Stock in order to pay taxes owed on dividends, it may put downward pressure on the trading price of our Common Stock. We
do not currently intend to pay taxable dividends of our Common Stock and cash, although we may choose to do so in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The prohibited transactions tax may limit
our ability to dispose of our properties.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">A REIT&rsquo;s net income
from prohibited transactions is subject to a 100% tax. In general, prohibited transactions are sales or other dispositions of property,
other than foreclosure property, held primarily for sale to customers in the ordinary course of business. We may be subject to the prohibited
transaction tax equal to 100% of net gain upon a disposition of real property. Although a safe harbor to the characterization of the
sale of real property by a REIT as a prohibited transaction is available, we cannot assure you that we can comply with the safe harbor
or that we will avoid owning property that may be characterized as held primarily for sale to customers in the ordinary course of business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Consequently, we may choose not to engage in
certain sales of our properties or may conduct such sales through our TRS, which would be subject to federal and state income taxation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The ability of the Board to revoke our
REIT qualification without stockholder approval may cause adverse consequences to our stockholders.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our Charter provides that
the Board may revoke or otherwise terminate our REIT election, without the approval of our stockholders, if it determines that it is
no longer in our best interest to continue to qualify as a REIT. If we cease to qualify as a REIT, we would become subject to U.S. federal
and state and local income taxes on our taxable income and would no longer be required to distribute most of our taxable income to our
stockholders, which may have adverse consequences on the total stockholder return received by our stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We may be subject to adverse legislative
or regulatory tax changes that could reduce the market price of our securities.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">At any time, the U.S. federal
income tax laws governing REITs or the administrative interpretations of those laws may be amended. We cannot predict when or if any
new U.S. federal income tax law, regulation or administrative interpretation, or any amendment to any existing U.S. federal income tax
law, regulation or administrative interpretation, will be adopted, promulgated or become effective and any such law, regulation, or interpretation
may take effect retroactively. We and our stockholders could be adversely affected by any such change in the U.S. federal income tax
laws, regulations or administrative interpretations. It is possible that future legislation would result in a REIT having fewer advantages,
and it could become more advantageous for a company that invests in real estate to be treated, for U.S. federal income tax purposes,
as a corporation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>If Braemar failed to qualify as a REIT
for 2013, it would significantly affect our ability to maintain our REIT status.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">For U.S. federal income
tax purposes, we recorded a gain of approximately $145.7&nbsp;million as a result of the spin-off of Braemar in November&nbsp;2013. If
Braemar qualified for taxation as a REIT for 2013, that gain was qualifying income for purposes of our 2013 REIT income tests. If, however,
Braemar failed to qualify as a REIT for 2013, that gain would be non-qualifying income for purposes of the 75% gross income test. Although
Braemar covenanted in the Separation and Distribution Agreement to use reasonable best efforts to qualify as a REIT in 2013, no assurance
can be given that it so qualified. If Braemar failed to qualify, we would have failed our 2013 REIT income tests, which would either
result in our loss of our REIT status for 2013 and the following four taxable years or result in a significant tax in 2013 that has not
been accrued or paid and thereby would materially negatively impact our business, financial condition and potentially impair our ability
to continue operating in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Your investment in our securities has various
federal, state, and local income tax risks that could affect the value of your investment.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We strongly urge you to
consult your own tax advisor concerning the effects of federal, state, and local income tax law on an investment in our securities because
of the complex nature of the tax rules applicable to REITs and their stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our failure to qualify as a REIT would
potentially give rise to a claim for damages from Braemar.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In connection with the spin-off
of Braemar, which was completed in November&nbsp;2013, we represented in the Separation and Distribution Agreement with Braemar that
we have no knowledge of any fact or circumstance that would cause us to fail to qualify as a REIT. In the event of a breach of this representation,
Braemar may be able to seek damages from us, which could have a significantly negative effect on our liquidity and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Declines in the values of our investments
may make it more difficult for us to maintain our qualification as a REIT or exemption from the Investment Company Act.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">If the market value or income
potential of real estate-related investments declines as a result of increased interest rates or other factors, we may need to increase
our real estate-related investments and income or liquidate our non- qualifying assets in order to maintain our REIT qualification or
exemption from the Investment Company Act of 1940 (the &ldquo;Investment Company Act&rdquo;). If the decline in real estate asset values
and/or income occurs quickly, this may be especially difficult to accomplish. This difficulty may be exacerbated by the illiquid nature
of any non-qualifying assets that we may own. We may have to make investment decisions that we otherwise would not make absent the REIT
and Investment Company Act considerations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Risks Related to Our Corporate
Structure</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our Charter, the partnership agreement
of our operating partnership and Maryland law contain provisions that may delay or prevent a change of control transaction.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our Charter contains 9.8%
ownership limits. For the purpose of preserving our REIT qualification, our Charter prohibits direct or constructive ownership by any
person of more than (i)&nbsp;9.8% of the lesser of the total number or value (whichever is more restrictive) of the outstanding shares
of our Common Stock or (ii)&nbsp;9.8% of the total number or value (whichever is more restrictive) of the outstanding shares of any class
or series of our Preferred Stock or any other stock of our company, unless the Board grants a waiver.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our Charter&rsquo;s constructive
ownership rules are complex and may cause stock owned actually or constructively by a group of related individuals and/or entities to
be deemed to be constructively owned by one individual or entity. As a result, the acquisition of less than 9.8% of any class or series
of our stock by an individual or entity could nevertheless cause that individual or entity to own constructively in excess of 9.8% of
a class or series of outstanding stock, and thus be subject to our Charter&rsquo;s ownership limit. Any attempt to own or transfer shares
of our stock in excess of the ownership limit without the consent of the Board will be void, and could result in the shares being automatically
transferred to a charitable trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The Board may create and issue a class
or series of common stock or preferred stock without stockholder approval.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our Charter authorizes the
Board to issue common stock or preferred stock in one or more classes and to establish the preferences and rights of any class of common
stock or preferred stock issued. These actions can be taken without obtaining stockholder approval. Our issuance of additional classes
of common stock or preferred stock could substantially dilute the interests of the holders of our common stock. Such issuances could
also have the effect of delaying or preventing someone from taking control of us, even if a change in control were in our stockholders&rsquo;
best interests.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Certain provisions in the partnership agreement
of our operating partnership may delay or prevent unsolicited acquisitions of us.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Provisions in the partnership
agreement of our operating partnership may delay or make more difficult unsolicited acquisitions of us or changes in our control. These
provisions could discourage third parties from making proposals involving us or change of our control, although some stockholders might
consider such proposals, if made, desirable. These provisions include, among others:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">redemption
                                            rights of qualifying parties;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">transfer
                                            restrictions on our common&nbsp;units;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            ability of the general partner in some cases to amend the partnership agreement without the
                                            consent of the limited partners; and</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            right of the limited partners to consent to transfers of the general partnership interest
                                            and mergers under specified circumstances.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Because provisions contained in Maryland
law and our Charter may have an anti-takeover effect, investors may be prevented from receiving a &ldquo;control premium&rdquo; for their
shares.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Provisions contained in
our Charter and the Maryland General Corporation Law (the &ldquo;MGCL&rdquo;) may have effects that delay, defer, or prevent a takeover
attempt, which may prevent stockholders from receiving a &ldquo;control premium&rdquo; for their shares. For example, these provisions
may defer or prevent tender offers for our Common Stock or purchases of large blocks of our Common Stock, thereby limiting the opportunities
for our stockholders to receive a premium for their Common Stock over then-prevailing market prices.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">These provisions include
the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">The
                                            ownership limit in our Charter limits related investors, including, among other things, any
                                            voting group, from acquiring over 9.8% of our Common Stock or any class of our Preferred
                                            Stock without our permission.</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Our
                                            Charter authorizes the Board to issue common stock or preferred stock in one or more classes
                                            and to establish the preferences and rights of any class of common stock or preferred stock
                                            issued. These actions can be taken without soliciting stockholder approval. Our common stock
                                            and preferred stock issuances could have the effect of delaying or preventing someone from
                                            taking control of us, even if a change in control were in our stockholders&rsquo; best interests.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Maryland statutory law provides
that an act of a director relating to or affecting an acquisition or a potential acquisition of control of a corporation may not be subject
to a higher duty or greater scrutiny than is applied to any other act of a director. Hence, directors of a Maryland corporation by statute
are not required to act in certain takeover situations under the same standards of care, and are not subject to the same standards of
review, as apply in Delaware and other corporate jurisdictions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Certain other provisions of Maryland law,
if they became applicable to us, could inhibit changes in control.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Certain provisions of the
MGCL may have the effect of inhibiting a third party from making a proposal to acquire us under circumstances that otherwise could provide
our stockholders with the opportunity to realize a premium over the then-prevailing market price of our Common Stock or a &ldquo;control
premium&rdquo; for their shares or inhibit a transaction that might otherwise be viewed as being in the best interest of our stockholders.
These provisions include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">&ldquo;business
                                            combination&rdquo; provisions that, subject to limitations, prohibit certain business combinations
                                            between us and an &ldquo;interested stockholder&rdquo; (defined generally as any person who
                                            beneficially owns 10% or more of the voting power of our shares or an affiliate thereof)
                                            for five years after the most recent date on which the stockholder becomes an interested
                                            stockholder, and thereafter impose special stockholder voting requirements on these business
                                            combinations, unless certain fair price requirements set forth in the MGCL are satisfied;
                                            and</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">&ldquo;control
                                            share&rdquo; provisions that provide that &ldquo;control shares&rdquo; of our company (defined
                                            as shares which, when aggregated with other shares controlled by the stockholder, entitle
                                            the stockholder to exercise one of three increasing ranges of voting power in electing directors)
                                            acquired in a &ldquo;control share acquisition&rdquo; &#8203;(defined as the direct or indirect
                                            acquisition of ownership or control of outstanding &ldquo;control shares&rdquo;) have no
                                            voting rights except to the extent approved by our stockholders by the affirmative vote of
                                            at least two-thirds of all the votes entitled to be cast on the matter, excluding all interested
                                            shares.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In addition, Subtitle 8
of Title 3 of the MGCL permits a Maryland corporation with a class of equity securities registered under the Exchange Act and at least
three independent directors to elect to be subject, notwithstanding any contrary provision in the Charter or bylaws, to any or all of
the following five provisions: a classified board; a two-thirds stockholder vote requirement for removal of a director; a requirement
that the number of directors be fixed only by vote of the directors; a requirement that a vacancy on the board of directors be filled
only by the remaining directors and for the remainder of the full term of the class of directors in which the vacancy occurred; and a
requirement that the holders of at least a majority of all votes entitled to be cast request a special meeting of stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our Charter opts out of
the business combination/moratorium provisions and control share provisions of the MGCL and prevents us from making any elections under
Subtitle 8 of the MGCL. Because these provisions are contained in our Charter, they cannot be amended unless the Board recommends the
amendment and the stockholders approve the amendment. Any such amendment would require the affirmative vote of two-thirds of the outstanding
voting power of our Common Stock. Additionally, pursuant to the Investor Agreement, we are not permitted to elect to be subject to, or
publicly recommend any Charter amendment to our stockholders that would permit the Board to elect to be subject to, the business combination/moratorium
provisions or share control provisions of Maryland law or any similar state anti-takeover law, except to the extent Oaktree and its affiliates
are expressly exempted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We depend on our operating partnership
and its subsidiaries for cash flow and are effectively structurally subordinated in right of payment to the obligations of our operating
partnership and its subsidiaries, which could adversely affect our ability to make distributions to our stockholders.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We have no business operations
of our own. Our only significant asset is and will be the general and limited partnership interests of our operating partnership. We
conduct, and intend to continue to conduct, all of our business operations through our operating partnership. Accordingly, our only source
of cash to pay our obligations is distributions from our operating partnership and its subsidiaries of their net earnings and cash flows.
We cannot assure our stockholders that our operating partnership or its subsidiaries will be able to, or be permitted to, make distributions
to us that will enable us to make distributions to our stockholders from cash flows from operations. Each of our operating partnership&rsquo;s
subsidiaries is a distinct legal entity and, under certain circumstances, legal and contractual restrictions may limit our ability to
obtain cash from such entities. Therefore, in the event of our bankruptcy, liquidation or reorganization, our assets and those of our
operating partnership and its subsidiaries will be able to satisfy the claims of our stockholders only after all of our and our operating
partnership and its subsidiaries liabilities and obligations have been paid in full.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Offerings of debt securities, which would
be senior to our Common Stock and any Preferred Stock upon liquidation, or equity securities, which would dilute our existing stockholders&rsquo;
holdings and could be senior to our Common Stock for the purposes of dividend distributions, may adversely affect the market price of
our Common Stock and any Preferred Stock.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We may attempt to increase
our capital resources by making additional offerings of debt or equity securities, including commercial paper, medium-term notes, senior
or subordinated notes, convertible securities, and classes of Preferred Stock or Common Stock or classes of preferred&nbsp;units. Upon
liquidation, holders of our debt securities or preferred&nbsp;units and lenders with respect to other borrowings will receive a distribution
of our available assets prior to the holders of shares of Preferred Stock or Common Stock. Furthermore, holders of our debt securities
and Preferred Stock or preferred&nbsp;units and lenders with respect to other borrowings will receive a distribution of our available
assets prior to the holders of our Common Stock. Additional equity offerings may dilute the holdings of our existing stockholders or
reduce the market price of our Common Stock or Preferred Stock or both. Our Preferred Stock or preferred&nbsp;units could have a preference
on liquidating distributions or a preference on dividend payments that could limit our ability to make a dividend distribution to the
holders of our Common Stock. Because our decision to issue securities in any future offering will depend on market conditions and other
factors beyond our control, we cannot predict or estimate the amount, timing, or nature of our future offerings. Thus, our stockholders
bear the risk of our future offerings reducing the market price of our securities and diluting their securities holdings in us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Securities eligible for future sale may
have adverse effects on the market price of our securities.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We cannot predict the effect,
if any, of future sales of securities, or the availability of securities for future sales, on the market price of our outstanding securities.
Sales of substantial amounts of Common Stock, or the perception that these sales could occur, may adversely affect prevailing market
prices for our securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We also may issue from time
to time additional shares of our securities or&nbsp;units of our operating partnership in connection with the acquisition of properties
and we may grant additional demand or piggyback registration rights in connection with these issuances. Sales of substantial amounts
of our securities or the perception that such sales could occur may adversely affect the prevailing market price for our securities or
may impair our ability to raise capital through a sale of additional debt or equity securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>An increase in market interest rates may
have an adverse effect on the market price of our securities.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">A factor investors may consider
in deciding whether to buy or sell our securities is our dividend rate as a&nbsp;percentage of our share or unit price relative to market
interest rates. If market interest rates increase, prospective investors may desire a higher dividend or interest rate on our securities
or seek securities paying higher dividends or interest. The market price of our securities is likely based on the earnings and return
that we derive from our investments, income with respect to our properties, and our related distributions to stockholders and not necessarily
from the market value or underlying appraised value of the properties or investments themselves. As a result, interest rate fluctuations
and capital market conditions can affect the market price of our securities. For instance, if interest rates rise without an increase
in our dividend rate, the market price of our Common Stock or Preferred Stock could decrease because potential investors may require
a higher dividend yield on our Common Stock or Preferred Stock as market rates on interest-bearing securities, such as bonds, rise. In
addition, rising interest rates would result in increased interest expense on our variable-rate debt, thereby adversely affecting cash
flow and our ability to service our indebtedness and pay dividends.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our Board can take many actions without
stockholder approval.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our Board has overall authority
to oversee our operations and determine our major corporate policies. This authority includes significant flexibility. For example, our
Board can do the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">amend
                                            or revise at any time our dividend policy with respect to our Common Stock or Preferred Stock
                                            (including by eliminating, failing to declare, or significantly reducing dividends on these
                                            securities);</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">terminate
                                            our advisor under certain conditions pursuant to the Advisory Agreement, subject to the payment
                                            of a termination fee;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">amend
                                            or revise at any time and from time to time our investment, financing, borrowing and dividend
                                            policies and our policies with respect to all other activities, including growth, debt, capitalization
                                            and operations, subject to the limitations and restrictions provided in our Advisory Agreement
                                            and mutual exclusivity agreement;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">amend
                                            our policies with respect to conflicts of interest provided that such changes are consistent
                                            with applicable legal requirements;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">subject
                                            to the terms of our Charter, prevent the ownership, transfer and/or accumulation of shares
                                            in order to protect our status as a REIT or for any other reason deemed to be in the best
                                            interests of us and our stockholders;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">issue
                                            additional shares without obtaining stockholder approval, which could dilute the ownership
                                            of our then-current stockholders;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">amend
                                            our Charter to increase or decrease the aggregate number of shares of stock or the number
                                            of shares of stock of any class or series, without obtaining stockholder approval;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">classify
                                            or reclassify any unissued shares of our Common Stock or Preferred Stock and set the preferences,
                                            rights and other terms of such classified or reclassified shares, without obtaining stockholder
                                            approval;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">employ
                                            and compensate affiliates (subject to disinterested director approval);</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">direct
                                            our resources toward investments that do not ultimately appreciate over time; and</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">determine
                                            that it is not in our best interests to attempt to qualify, or to continue to qualify, as
                                            a REIT.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Any of these actions could
increase our operating expenses, impact our ability to make distributions or reduce the value of our assets without giving you, as a
stockholder, the right to vote.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The ability of our Board to change our
major policies without the consent of stockholders may not be in our stockholders&rsquo; interest.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our Board determines our
major policies, including policies and guidelines relating to our acquisitions, leverage, financing, growth, operations and distributions
to stockholders. Our Board may amend or revise these and other policies and guidelines from time to time without the vote or consent
of our stockholders, subject to certain limitations and restrictions provided in our Advisory Agreement. Accordingly, our stockholders
will have limited control over changes in our policies and those changes could adversely affect our financial condition, results of operations,
the market price of our stock and our ability to make distributions to our stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our rights and the rights of our stockholders
to take action against our directors and officers are limited.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Maryland law provides that
a director or officer has no liability in that capacity if he or she performs his or her duties in good faith, in a manner he or she
reasonably believes to be in our best interests and with the care that an ordinarily prudent person in a like position would use under
similar circumstances. In addition, our Charter eliminates our directors&rsquo; and officers&rsquo; liability to us and our stockholders
for money damages except for liability resulting from actual receipt of an improper benefit or profit in money, property or services
or active and deliberate dishonesty established by a final judgment to have been material to the cause of action. Our Charter requires
us to indemnify our directors and officers and to advance expenses prior to the final disposition of a proceeding to the maximum extent
permitted by Maryland law for liability actually incurred in connection with any proceeding to which they may be made, or threatened
to be made, a party, except to the extent that the act or omission of the director or officer was material to the matter giving rise
to the proceeding and was either committed in bad faith or was the result of active and deliberate dishonesty, the director or officer
actually received an improper personal benefit in money, property or services, or, in the case of any criminal proceeding, the director
or officer had reasonable cause to believe that the act or omission was unlawful. As a result, we and our stockholders may have more
limited rights against our directors and officers than might otherwise exist under common law. In addition, we are generally obligated
to fund the defense costs incurred by our directors and officers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Future issuances of securities, including
our Common Stock and Preferred Stock, could reduce existing investors&rsquo; relative voting power and&nbsp;percentage of ownership and
may dilute our share value.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our Charter authorizes the
issuance of up to 400,000,000 shares of Common Stock and 50,000,000 shares of Preferred Stock. As of October 29, 2021, we had 33,599,411
shares of our Common Stock issued and outstanding, 1,174,427 shares of our Series&nbsp;D Preferred Stock, 1,298,544 shares of our Series&nbsp;F
Preferred Stock, 1,635,096 shares of our Series&nbsp;G Preferred Stock, 1,313,415 shares of our Series&nbsp;H Preferred Stock, and 1,252,923
shares of our Series&nbsp;I Preferred Stock. Accordingly, we may issue up to an additional 366,400,589 shares of Common Stock and 43,325,595
shares of Preferred Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Future issuances of Common
Stock or Preferred Stock could decrease the relative voting power of our Common Stock or Preferred Stock and may cause substantial dilution
in the ownership&nbsp;percentage of our then-existing holders of Common Stock or Preferred Stock. Future issuances may have the effect
of reducing investors&rsquo; relative voting power and/or diluting the net tangible book value of the shares held by our stockholders,
and might have an adverse effect on any trading market for our securities. Our Board may designate the rights, terms and preferences
of our authorized but unissued shares of Common Stock or Preferred Stock at its discretion, including conversion and voting preferences
without stockholder approval.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in"><A NAME="n_001"></A>CAUTIONARY
NOTE REGARDING FORWARD-LOOKING STATEMENTS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Throughout this prospectus,
we make forward-looking statements that are subject to risks and uncertainties. Forward-looking statements are generally identifiable
by use of forward-looking terminology such as &ldquo;may,&rdquo; &ldquo;will,&rdquo; &ldquo;should,&rdquo; &ldquo;potential,&rdquo; &ldquo;intend,&rdquo;
 &ldquo;expect,&rdquo; &ldquo;anticipate,&rdquo; &ldquo;estimate,&rdquo; &ldquo;approximately,&rdquo; &ldquo;believe,&rdquo; &ldquo;could,&rdquo;
 &ldquo;project,&rdquo; &ldquo;predict,&rdquo; or other similar words or expressions. Additionally, statements regarding the following
subjects are forward-looking by their nature:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            impact of COVID-19 and numerous governmental travel restrictions and other orders on our
                                            business including one or more possible recurrences of COVID-19 cases causing state and local
                                            governments to reinstate travel restrictions;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our
                                            business and investment strategy;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">anticipated
                                            or expected purchases or sales of assets;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our
                                            projected operating results;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

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<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">completion
                                            of any pending transactions;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our
                                            ability to restructure existing property level indebtedness;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our
                                            ability to secure additional financing to enable us to operate our business during the pendency
                                            of COVID-related business weakness, which has materially impacted our operating cash flows
                                            and cash balances;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our
                                            understanding of our competition;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">market
                                            trends;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">projected
                                            capital expenditures; and</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            impact of technology on our operations and business.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Such forward-looking statements
are based on our beliefs, assumptions, and expectations of our future performance taking into account all information currently known
to us. These beliefs, assumptions, and expectations can change as a result of many potential events or factors, not all of which are
known to us. If a change occurs, our business, financial condition, liquidity, results of operations, plans, and other objectives may
vary materially from those expressed in our forward-looking statements. You should carefully consider this risk when you make an investment
decision concerning our securities. Additionally, the following factors could cause actual results to vary from our forward-looking statements:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            factors discussed in our Form 10-K for the year ended December&nbsp;31, 2020, as filed with
                                            the SEC on March&nbsp;16, 2021, including those set forth under the sections titled &ldquo;Risk
                                            Factors,&rdquo; &ldquo;Legal Proceedings,&rdquo; &ldquo;Management&rsquo;s Discussion and
                                            Analysis of Financial Condition and Results of Operations,&rdquo; &ldquo;Business,&rdquo;
                                            and &ldquo;Properties,&rdquo; as updated in our subsequent Quarterly Reports on Form&nbsp;10-Q
                                            and other filings under the Exchange Act;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD></TD><TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">adverse effects of the COVID-19
                                            pandemic, including a significant reduction in business and personal travel and travel restrictions
                                            in regions where our hotels are located, and one or more possible recurrences of COVID-19
                                            cases causing a further reduction in business and personal travel and potential reinstatement
                                            of travel restrictions by state or local governments;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD></TD><TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">ongoing negotiations with our
                                            lenders regarding potential forbearance or the exercise by our lenders of their remedies
                                            for default under our loan agreements;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD></TD><TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">actions by our lenders to accelerate
                                            loan balances and foreclose on the hotel properties that are security for our loans that
                                            are in default;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD></TD><TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">actions by the lenders of our
                                            senior secured credit facility to foreclose on our assets which are pledged as collateral;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD></TD><TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">general volatility of the capital
                                            markets and the market price of our Common Stock and Preferred Stock;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD></TD><TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">general and economic business
                                            conditions affecting the lodging and travel industry;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD></TD><TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">changes in our business or
                                            investment strategy;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD></TD><TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">availability, terms, and deployment
                                            of capital;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD></TD><TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">unanticipated increases in
                                            financing and other costs, including a rise in interest rates;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD></TD><TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">changes in our industry and
                                            the market in which we operate, interest rates, or local economic conditions;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD></TD><TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the degree and nature of our
                                            competition;</TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

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<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">actual
                                            and potential conflicts of interest with Ashford Inc. and its subsidiaries (including Ashford
                                            LLC, Remington Hotels and Premier), Braemar, our executive officers and our non-independent
                                            directors;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD></TD><TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the expenditures, disruptions
                                            and uncertainties associated with a potential proxy contest;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD></TD><TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">changes in personnel of Ashford
                                            LLC or the lack of availability of qualified personnel;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD></TD><TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">changes in governmental regulations,
                                            accounting rules, tax rates and similar matters;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD></TD><TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our ability to implement effective
                                            internal controls to address the material weakness identified in our Annual Report on Form
                                            10-K for the annual period ended December&nbsp;31, 2020;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD></TD><TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the timing or outcome of the
                                            SEC investigation;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD></TD><TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">legislative and regulatory
                                            changes, including changes to the Code, and related rules, regulations and interpretations
                                            governing the taxation of REITs;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD></TD><TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">limitations imposed on our
                                            business and our ability to satisfy complex rules in order for us to qualify as a REIT for
                                            U.S. federal income tax purposes; and</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD></TD><TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">future sales and issuances
                                            of our Common Stock or other securities, including the issuance of additional warrants to
                                            purchase shares of our Common Stock as a result of upward adjustments pursuant to the Credit
                                            Agreement and the Warrant Certificate included as Exhibit A to Amendment No. 1 to the Credit
                                            Agreement and the sale or issuance of our Common Stock under an equity line of credit and/or
                                            in any privately negotiated exchange transactions completed in reliance on Section&nbsp;3(a)(9)
                                            of the Securities Act, might result in dilution and could cause the price of our Common Stock
                                            to decline.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">When considering forward-looking
statements, you should keep in mind the risk factors and other cautionary statements in this prospectus could cause our actual results
and performance to differ significantly from those contained in our forward-looking statements. Additionally, many of these risks and
uncertainties are currently amplified by and will continue to be amplified by, or in the future may be amplified by, the COVID-19 outbreak
and the numerous government travel restrictions imposed in response thereto. The extent to which the COVID-19 pandemic impacts us will
depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and
duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects
of the pandemic and containment measures, among others. Accordingly, we cannot guarantee future results or performance. Readers are cautioned
not to place undue reliance on any of these forward-looking statements, which reflect our views as of the date of this prospectus. Furthermore,
we do not intend to update any of our forward-looking statements after the date of this prospectus to conform these statements to actual
results and performance, except as may be required by applicable law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in"><A NAME="n_002"></A>THE
CREDIT AGREEMENT WITH OAKTREE</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On January 15, 2021, the
Company and Ashford Trust OP entered into the Original Credit Agreement with certain funds and accounts managed by Oaktree and the Administrative
Agent. The Original Credit Agreement provides that, subject to the conditions set forth therein, Oaktree will make available to the Company
a senior secured term loan facility comprised of (a) the Initial Term Loan in an aggregate principal amount of $200,000,000, (b) the
Initial DDTL in an aggregate principal amount of up to $150,000,000 and (c) the Additional DDTL in an aggregate principal amount of up
to $100,000,000,&nbsp;in each case to fund general corporate operations of the Company and its subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Loans under the Original
Credit Agreement will bear interest (a) with respect to the Initial Term Loan and the Initial DDTL, at an annual rate equal to 16% for
the first two years, reducing to 14% thereafter and (b) with respect to the Additional DDTL, at an annual rate equal to 18.5% for the
first two years, reducing to 16.5% thereafter. Interest payments on the Loans will be due and payable in arrears on the last business
day of March, June, September and December of each calendar year and the Maturity Date. For the first two years following the closing
of the Original Credit Agreement, the Company will have the option to pay the PIK Interest &ldquo;in kind&rdquo; by adding such amount
of PIK Interest to the outstanding principal balance of the Loans. The initial Maturity Date of the Original Credit Agreement shall be
three years from January 15, 2021, with two optional one-year extensions subject to satisfaction of certain terms and conditions. Oaktree
shall, subject to certain terms, have the ability to make protective advances to the Company pursuant to the terms of the Original Credit
Agreement to cure defaults with respect to mortgage and mezzanine-level indebtedness of subsidiaries of the Company having principal
balances in excess of $400,000,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Loans under the Original
Credit Agreement are subject to prepayment with the net cash proceeds of certain events including asset sales, casualty events, excess
proceeds from refinancings of property-level debt and the issuance of indebtedness that is not permitted to be incurred under the Original
Credit Agreement, in certain cases subject to the right of the Company to reinvest such net cash proceeds in assets useful to the business
or use a portion thereof to fund operating shortfalls at property-level subsidiaries. The Company will pay certain customary fees and
expenses in connection with the funding of the Loans under the Original Credit Agreement. Certain prepayments or repayments of the Loans
are subject to prepayment premiums as described in the Original Credit Agreement, including a customary make-whole premium in respect
of prepayments made within the first 24 months after the closing of the Original Credit Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Original Credit Agreement
contains certain customary affirmative and negative covenants,&nbsp;subject to certain carve-outs and exceptions, including restrictions
on the ability of the Company to incur debt and liens and make investments and dispositions, and a covenant to maintain not less than
$50,000,000 in unrestricted cash. The Original Credit Agreement also contains customary events of default including (subject to customary
grace periods and materiality qualifiers), among others, (a) the failure to re-pay the Loans made under the Original Credit Agreement
when due, (b) the failure to perform or observe any term, covenant or agreement contained in the Original Credit Agreement and accompanying
documents, (c) cross-default to indebtedness of the Company having an aggregate principal amount of more than $40,000,000, (d) cross-acceleration
to indebtedness of property-level subsidiaries having an aggregate principal amount in excess of $400,000,000 and (e) the institution
of insolvency proceedings.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company and certain of
its subsidiaries that are guarantors have granted liens on substantially all of their assets to Oaktree to secure the obligations under
the Original Credit Agreement, subject to certain exceptions and permitted liens.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Upon the earliest of the
repayment in full of the Loans, the final maturity of the Loans under the Original Credit Agreement or the acceleration of the Loans
after an event of default, Oaktree will be entitled to the Exit Fee, which, at the election of Oaktree, will be satisfied by either the
payment of a cash fee equal to (1) 15% of all Loans advanced plus any outstanding capitalized PIK Interest (which may, subject to certain
conditions, at the election of the company, be paid in the form of common stock of the Company) or (2) warrants for the purchase of common
stock of the Company equal to 19.9% of all common stock outstanding on the closing date of the Original Credit Agreement plus 1% multiplied
by the quotient obtained by dividing the aggregate amount of all Initial DDTL advances made under the Original Credit Agreement by $10
million, subject to additional adjustments and conditions as more fully described in the Original Credit Agreement and the Warrant Certificate
included as Exhibit A to Amendment No. 1 to the Credit Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Investor Agreement</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In connection with the transactions
contemplated by the Original Credit Agreement, on January 15, 2021, the Company entered into the Investor Agreement with Oaktree. The
Investor Agreement sets forth various arrangements and restrictions with respect to the parties, including, among others, the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Board Observers</I>. Until
the later of (a) such time as the Loans have been repaid in full and (b) Oaktree beneficially own, in the aggregate, warrants, shares
of Common Stock of the Company, or Common Partnership Units, in each case solely to the extent issued in connection with the payment
of the Exit Fee, representing (or convertible, exchangeable, redeemable or exercisable into) less than fifteen percent (15%) of the total
number of shares of Common Stock on a fully diluted basis, Oaktree shall have the right to appoint two (2) observers to the Board, subject
to certain limitations as more fully described in the Investor Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Standstill</I>. The Investor
Agreement includes customary standstill provisions which require that, until the later of (a) such time as the Loans have been repaid
in full and the Exit Fee has been paid and (b) Oaktree beneficially owns, in the aggregate, warrants, shares of Common Stock, or Common
Partnership Units, representing (or convertible, exchangeable, redeemable or exercisable into) less than ten percent (10%) of the total
number of shares of Common Stock on a fully diluted basis, Oaktree will not at any time, nor will they cause or permit any of their affiliates
(other than certain excluded affiliates) to (i) acquire shares of Common Stock or securities convertible, exchangeable, redeemable or
exercisable into shares of Common Stock or (ii) take certain actions related to, or advise, assist or encourage others to take actions
related to, mergers, tender offers, exchange offers, business combinations, restructurings or other extraordinary transactions, and will
refrain from taking certain actions related to the calling of meetings, solicitation of proxies, making of proposals or director nominations
and other actions of stockholders. The standstill provisions shall terminate thirty (30) days following an uncured event of default under
the Original Credit Agreement or upon the occurrence of a Fundamental Change Event (as defined in the Investor Agreement).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Voting</I>. During the
period Oaktree has the right to appoint observers to the Board, they shall cause all shares of Common Stock held to be voted, or following
the date Oaktree ceases having the right to appoint observers to the Board, they shall cause all shares of Common Stock that represent
in excess of nine and eight-tenths percent (9.8%) of the outstanding shares of Common Stock of the Company to be voted, in each case,
(x) in favor of all persons nominated to serve as directors by the Board and against all persons who have not been recommended by the
Board and (y) otherwise in accordance with the recommendation of the Board with respect to all other actions, proposals or matters to
be voted upon by the stockholders of the Company. The voting agreements shall terminate thirty (30) days following an uncured event of
default under the Original Credit Agreement or upon the occurrence of a Fundamental Change Event.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Anti-Takeover Covenants</I>.
Until the later of (a) such time as the Loans have been repaid in full and (b) Oaktree beneficially owns, in the aggregate, warrants,
shares of Common Stock, or Common Partnership Units, representing (or convertible, exchangeable, redeemable or exercisable into) less
than ten percent (10%) of the total number of shares of Common Stock on a fully diluted basis, the Company will not adopt a stockholders
rights plan or similar form of &ldquo;poison pill&rdquo; arrangement or elect or cause the Company to be subject to any applicable state
anti-takeover law, in each case except to the extent Oaktree and their affiliates are expressly exempted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Preemptive Rights</I>.
The Investor Agreement provides Oaktree with a preemptive right in the event that the Company issues and sells shares of Common Stock
in certain public offerings and private placements, as more fully described in the Investor Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Subordination and Non-Disturbance Agreement</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">In
connection with the transactions contemplated by the Original Credit Agreement, on January 15, 2021, the Company entered into </FONT>the
<FONT STYLE="font-size: 10pt">SNDA with Ashford Trust OP, Ashford TRS, Ashford Inc., Ashford LLC, Remington Hotels</FONT>, <FONT STYLE="font-size: 10pt">Premier,
Lismore and the Administrative Agent pursuant to which the applicable parties agreed to subordinate to the prior repayment in full of
all obligations under the Original Credit Agreement, (1) prior to the later of (i) the second anniversary of the Original Credit Agreement
and (ii) the date PIK Interest is paid in full, advisory fees (other than reimbursable expenses) in excess of 80% of such fees paid during
the fiscal year ended December 31, 2019, (2) any </FONT>termination fee or liquidated damages amounts under the advisory agreement, or
any amount owed under any enhanced return funding program in connection with the termination of the advisory agreement or sale or foreclosure
of assets financed thereunder, and (3) any payments to Lismore in connection with the transactions contemplated by the Original Credit
Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Amendment No. 1 to the Credit Agreement</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">On October 12, 2021, the
Company and Ashford Trust OP entered into Amendment No. 1 to the Credit Agreement with certain funds and accounts managed by Oaktree
and the Administrative Agent which, among other items, (i) extends the commitment period of the Initial DDTL and Additional DDTL from
thirty months to forty-two months after the initial closing date of the Credit Agreement, if the Initial Term Loans are repaid in full
prior to the expiration of the DDTL Commitment Period, (ii) suspends our obligations to comply with certain covenants during the DDTL
Commitment Period if at any point there are no loans or accrued interest thereon are outstanding, (iii)&nbsp;suspends our obligation
to subordinate fees due under the Advisory Agreement if at any point there is no accrued interest outstanding or any accrued dividends
on any of our preferred stock and we have a sufficient unrestricted cash to repay in full all outstanding Loans, (iv)&nbsp;permits Oaktree
to, at any time, elect to receive an Exit Fee in warrants for the purchase of Common Stock equal to 19.9% of all Common Stock outstanding
on the closing date of the senior secured credit facility subject to certain upward or downward adjustments, and (v) provides that in
the event prior to the termination of the facility, Oaktree elects to receive the Exit Fee in warrants and any of such warrants are sold
at a price per share of Common Stock in excess of $40, all obligations owed to Oaktree shall be reduced by an amount equal to 25% of
the amount of such excess consideration, subject to certain adjustments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In connection with the Credit
Agreement and in the event Oaktree elects to receive the Exit Fee in warrants, the Company will issue to Oaktree warrants to purchase
1,745,260 shares of our Common Stock, which represents 19.9% of all Common Stock outstanding on the closing date of the Credit Agreement
(calculated on a pro forma basis after giving effect to the issuance of such shares of common stock upon exercise of the warrants). The
Warrant Certificate agreed to by the parties provides for customary adjustments in the event of certain distributions, subdivisions,
combinations and other issuances by the Company. The Warrant Certificate also provides for adjustments to the number of shares which
such warrants are purchasable for, subject to the terms and conditions set forth in the Credit Agreement and Warrant Certificate, (i)
downward in the event certain of the Company&rsquo;s subsidiaries effect a pledge of the equity interests of certain property-level subsidiaries
and (ii) upward in the event Oaktree advance additional DDTLs to the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 22.5pt">Prior to the issuance of the warrants, the Company
and Oaktree will also enter into the Registration Rights Agreement pursuant to which, among other items, the Company will agree to maintain
the effectiveness of this registration statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in"><A NAME="n_003"></A>&#8203;USE
OF PROCEEDS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We are registering these
shares of our Common Stock for the benefit of the selling stockholders. We will not receive any proceeds from the resale of our Common
Stock under this offering. In the event that Oaktree elects to receive the Exit Fee in warrants and any of such warrants are sold at
a price per share of Common Stock in excess of $40.00, all obligations owed by us to Oaktree under the Credit Agreement shall be reduced
by an amount equal to 25% of the amount of such excess consideration, subject to certain adjustments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in"><A NAME="n_004"></A>SELLING
STOCKHOLDERS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">References to &ldquo;selling
stockholders&rdquo; in this prospectus means the persons listed in the table below, and the pledgees, donees, permitted transferees,
assignees, successors and others who later come to hold any of the selling stockholders&rsquo; interests in shares of our Common Stock
other than through a public sale. Except as noted in this prospectus, none of the selling stockholders have, or within the past three
years have had, any material relationship with us or any of our predecessors or affiliates and the selling stockholders are not or were
not affiliated with registered broker dealers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The shares of Common Stock
being registered for resale hereby consist of shares that have been issued or are issuable upon exercise of the warrants that may be
issued to the selling stockholders in the event Oaktree elects to receive the Exit Fee in warrants for the purchase of our Common Stock
under the Credit Agreement. We are registering the shares of Common Stock pursuant to the provisions of the Registration Rights Agreement
we entered into with Oaktree prior to the closing of this offering in order to permit the selling stockholder to offer the shares for
resale from time to time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The table below presents
information regarding the selling stockholder and the shares of Common Stock that they may offer from time to time under this prospectus.
This table is prepared based on information supplied to us by the selling stockholders, and reflects holdings as of October 18, 2021.
The selling stockholders may sell some, all or none of their shares in this offering. We do not know how long the selling stockholders
will hold the shares before selling them, and we currently have no agreements, arrangements or understandings with the selling stockholders
regarding the sale of any of the shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Beneficial ownership is
determined in accordance with Rule&nbsp;13d-3(d) promulgated by the SEC under the Exchange Act, and includes shares of Common Stock with
respect to which the selling stockholders have voting and investment power. The&nbsp;percentage of shares of Common Stock beneficially
owned by the selling stockholders prior to the offering shown in the table below is based on an aggregate of 33,398,492 shares of our
Common Stock outstanding on October 18, 2021. However, each selling stockholder may sell all, some or none of the shares offered pursuant
to this prospectus and may sell other shares of our Common Stock that they may own pursuant to another registration statement under the
Securities Act or sell some or all of their shares pursuant to an exemption from the registration provisions of the Securities Act, including
under Rule 144. The fourth column assumes the sale of all of the shares offered by the selling stockholder pursuant to this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
<TD STYLE="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
<TD COLSPAN="6" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Shares Beneficially
Owned<BR> Prior to Offering</TD>
<TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
<TD COLSPAN="6" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Shares to be
Beneficially<BR> Owned After Offering</TD>
<TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
<TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Name of Selling Stockholder</TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
<TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Number.</TD>
<TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
<TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Percentage.
<SUP>(1)</SUP></TD>
<TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Number. <SUP>(2)</SUP></TD>
<TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
<TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Percentage.
<SUP>(1)</SUP></TD>
<TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="width: 48%; font-size: 10pt; text-align: left; text-indent: -9pt; padding-left: 9pt">OCM AHT Holdings, LLC <SUP>(3) (6)</SUP></TD>
<TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
<TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD>
<TD STYLE="width: 10%; font-size: 10pt; text-align: right">860,064</TD>
<TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD>
<TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
<TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD>
<TD STYLE="width: 10%; font-size: 10pt; text-align: right">2.6</TD>
<TD STYLE="width: 1%; font-size: 10pt; text-align: left">%</TD>
<TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
<TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD>
<TD STYLE="width: 10%; font-size: 10pt; text-align: right">&mdash;</TD>
<TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD>
<TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
<TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD>
<TD STYLE="width: 10%; font-size: 10pt; text-align: right">*</TD>
<TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font-size: 10pt; text-align: left; text-indent: -9pt; padding-left: 9pt">ROF8 AHT PT, LLC<SUP>(4) (6)</SUP></TD>
<TD STYLE="font-size: 10pt">&nbsp;</TD>
<TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
<TD STYLE="font-size: 10pt; text-align: right">860,064</TD>
<TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
<TD STYLE="font-size: 10pt">&nbsp;</TD>
<TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
<TD STYLE="font-size: 10pt; text-align: right">2.6</TD>
<TD STYLE="font-size: 10pt; text-align: left">%</TD>
<TD STYLE="font-size: 10pt">&nbsp;</TD>
<TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
<TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD>
<TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
<TD STYLE="font-size: 10pt">&nbsp;</TD>
<TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
<TD STYLE="font-size: 10pt; text-align: right">*</TD>
<TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font-size: 10pt; text-align: left; text-indent: -9pt; padding-left: 9pt">Oaktree Phoenix Investment Fund AIF (Delaware), L.P.
<SUP>(5) (6)</SUP></TD>
<TD STYLE="font-size: 10pt">&nbsp;</TD>
<TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
<TD STYLE="font-size: 10pt; text-align: right">25,132</TD>
<TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
<TD STYLE="font-size: 10pt">&nbsp;</TD>
<TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
<TD STYLE="font-size: 10pt; text-align: right">*</TD>
<TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
<TD STYLE="font-size: 10pt">&nbsp;</TD>
<TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
<TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD>
<TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
<TD STYLE="font-size: 10pt">&nbsp;</TD>
<TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
<TD STYLE="font-size: 10pt; text-align: right">*</TD>
<TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 3pt; margin-bottom: 3pt; width: 25%"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="margin-top: 0; margin-bottom: 0"></P>


<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in">*</TD><TD STYLE="text-align: justify">Less than one&nbsp;percent.</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>(1)</TD><TD STYLE="text-align: justify">Applicable percentage ownership is based on 33,398,492 shares of our Common Stock
                   outstanding as of October 18, 2021, and assuming an Exit Fee of 1,745,260 as described in &ldquo;Prospectus Summary&#8201;&mdash;&#8201;The
                   Offering.&rdquo;&#9;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>(2)</TD><TD STYLE="text-align: justify">Assumes the sale of all shares being offered pursuant to this prospectus.</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>(3)</TD>
<TD STYLE="text-align: justify">The manager of OCM AHT Holdings, LLC is Oaktree Fund GP, LLC. The managing member of Oaktree Fund GP,
LLC is Oaktree Fund GP I, L.P. The general partner of Oaktree Fund GP I, L.P. is Oaktree Capital I, L.P. The general partner of Oaktree
Capital I, L.P. is OCM Holdings I, LLC. The managing member of OCM Holdings I, LLC is Oaktree Holdings, LLC. The managing member of Oaktree
Holdings, LLC is Oaktree Capital Group, LLC. Oaktree Capital Group, LLC is governed and controlled by its eleven-member board of directors.
Each of the general partners, managing members, managers and directors listed above in this note disclaims beneficial ownership of the
securities set forth in the table above as being beneficially owned by OCM AHT Holdings, LLC, except to the extent of their respective
pecuniary interest therein, if any.</TD></TR>

<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD>
<TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>(4)</TD><TD STYLE="text-align: justify">The managing member of ROF8 AHT PT, LLC is Oaktree Real Estate Opportunities Fund
                   VIII GP, L.P. The general partner of Oaktree Real Estate Opportunities Fund VIII GP, L.P. is Oaktree Real Estate Opportunities
                   Fund VIII GP Ltd. The sole director of Oaktree Real Estate Opportunities Fund VIII GP Ltd. is Oaktree Capital Management,
                   L.P. The general partner of Oaktree Capital Management, L.P. is Oaktree Capital Management GP, LLC. The sole managing
                   member of Oaktree Capital Management GP, LLC is Atlas OCM Holdings, LLC. Atlas OCM Holdings, LLC is governed and controlled
                   by its eleven-member board of directors.&nbsp; Each of the general partners, managing members, and directors listed
                   above in this note disclaims beneficial ownership of the securities set forth in the table above as being beneficially
                   owned by ROF8 AHT PT, LLC, except to the extent of their respective pecuniary interest therein, if any.</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>(5)</TD><TD STYLE="text-align: justify">The general partner of Oaktree Phoenix Investment Fund AIF (Delaware), L.P. is Oaktree
                   Fund AIF Series, L.P. The general partner of Oaktree Fund AIF Series, L.P. is Oaktree Fund GP AIF, LLC. The managing
                   member of Oaktree Fund GP AIF, LLC is Oaktree Fund GP III, L.P.&nbsp; The general partner of Oaktree Fund GP III,
                   L.P. is Oaktree AIF Investments, L.P. The general partner of Oaktree AIF Investments, L.P. is Oaktree AIF Investment
                   GP, LLC.&nbsp; The sole member of Oaktree AIF Investment GP, LLC is Atlas OCM Holdings, LLC.&nbsp;Atlas OCM Holdings,
                   LLC is governed and controlled by its eleven-member board of directors. Each of the general partners, managing members,
                   sole members, and directors listed above in this note expressly disclaims beneficial ownership of the securities set
                   forth in the table above as being beneficially owned by Oaktree Phoenix Investment Fund AIF (Delaware), L.P., except
                   to the extent of their respective pecuniary interest therein, if any.</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>(6)</TD><TD STYLE="text-align: justify">OCM AHT Holdings, LLC, ROF8 AHT PT, LLC and Oaktree Phoenix Investment Fund AIF (Delaware),
                   L.P. may be deemed to be a &ldquo;group&rdquo; for purposes of Rule 13d-3 under the Securities Exchange Act of 1934.
                   Each such entity and each of the general partners, managing members, sole members, and directors thereof expressly
                   disclaims beneficial ownership of the securities of each of the other such entities, except to the extent of their
                   pecuniary interest therein, if any.</TD></TR></TABLE>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in"></P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in"><A NAME="n_005"></A>POLICIES
AND OBJECTIVES WITH RESPECT TO CERTAIN ACTIVITIES</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The following is a discussion
of our policies with respect to certain activities, including financing matters and conflicts of interest. These policies may be amended
or revised from time to time at the discretion of the Board, without a vote of our stockholders. Any change to any of these policies
by the Board, however, would be made only after a review and analysis of that change, in light of then-existing business and other circumstances,
and then only if, in the exercise of its business judgment, the Board believes that it is advisable to do so in our and our stockholders&rsquo;
best interests.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Disposition Policy</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We will evaluate our asset
portfolio on a regular basis to determine if it continues to satisfy our investment criteria. Subject to certain restrictions applicable
to REITs, we may sell investments opportunistically and use the proceeds of any such sale for debt reduction or additional acquisitions.
We will utilize several criteria to determine the long-term potential of our investments. Investments will be identified for sale based
upon management&rsquo;s forecast of the strength of the related cash flows as well as their value to our overall portfolio. Our decision
to sell an investment often will be predicated upon the projected cash flow, size of the hotel, strength of the franchise, property condition
and related costs to renovate the property, strength of market demand, projected supply of hotel rooms in the market, probability of
increased valuation and geographic profile of the hotel. We may also acquire and sell other lodging-related assets opportunistically
based upon management&rsquo;s forecast and review of the performance of our overall portfolio and management&rsquo;s assessment of changing
conditions in the investment and capital markets. If we sell a property, other than a foreclosure property, held for sale to customers
in the ordinary course of business, our gain from the sale will be subject to a 100% penalty tax.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Financing Policies</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We utilize debt to increase
equity returns. When evaluating our future level of indebtedness and making decisions regarding the incurrence of indebtedness, the Board
considers a number of factors, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our
                                            leverage levels across the portfolio;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            purchase price of our investments to be acquired with debt financing;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">impact
                                            on financial covenants;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">cost
                                            of debt;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">loan
                                            maturity schedule;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            estimated market value of our investments upon refinancing;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            ability of particular investments, and our Company as a whole, to generate cash flow to cover
                                            expected debt service; and</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">trailing
                                            twelve months net operating income of the hotel to be financed.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We may incur debt in the
form of purchase money obligations to the sellers of properties, publicly or privately placed debt instruments, or financing from banks,
institutional investors, or other lenders. Any such indebtedness may be secured or unsecured by mortgages or other interests in our properties.
This indebtedness may be recourse, non-recourse, or cross-collateralized. If recourse, such recourse may include our general assets or
be limited to the particular investment to which the indebtedness relates. In addition, we may invest in properties or loans subject
to existing loans secured by mortgages or similar liens on the properties, or we may refinance properties acquired on a leveraged basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We may use the proceeds
from any borrowings for working capital, consistent with industry practice, to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">purchase
                                            interests in partnerships or joint ventures;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">finance
                                            the origination or purchase of debt investments; or</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">finance
                                            acquisitions, expand, redevelop or improve existing properties, or develop new properties
                                            or other uses.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In addition, if we do not
have sufficient cash available, we may need to borrow to meet taxable income distribution requirements under the Internal Revenue Code
of 1986, as amended (the &ldquo;Code&rdquo;). No assurances can be given that we will obtain additional financings or, if we do, what
the amount and terms will be. Our failure to obtain future financing under favorable terms could adversely impact our ability to execute
our business strategy. In addition, we may selectively pursue debt financing on our individual properties and debt investments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Equity Capital Policies</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Subject to applicable law
and the requirements for listed companies on the New York Stock Exchange, the Board has the authority, without further stockholder approval,
to issue additional authorized Common Stock and Preferred Stock or otherwise raise capital, including through the issuance of senior
securities, in any manner and on the terms and for the consideration it deems appropriate, including in exchange for property. Existing
stockholders will have no preemptive right to additional shares issued in any offering, and any offering might cause a dilution of investment.
See &ldquo;Description of Capital Stock.&rdquo; We may in the future issue Common Stock in connection with acquisitions. We also may
issue&nbsp;units of partnership interest in our operating partnership in connection with acquisitions of property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We may, under certain circumstances,
purchase Common Stock in the open market or in private transactions with our stockholders, if those purchases are approved by the Board.
The Board has no present intention of causing us to repurchase any shares, and any action would only be taken in conformity with applicable
federal and state laws and the applicable requirements for qualifying as a REIT, for so long as the Board concludes that we should remain
a REIT.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In the future we may institute
a dividend reinvestment plan, or DRIP, and a related stock purchase plan which would allow our stockholders to acquire additional Common
Stock by automatically reinvesting their cash dividends. Shares would be acquired pursuant to the plan at a price equal to the then prevailing
market price, without payment of brokerage commissions or service charges. Stockholders who do not participate in the plan will continue
to receive cash dividends as declared.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">See &ldquo;Prospectus Summary&#8201;&mdash;&#8201;Recent
Developments&rdquo; for a summary of the Exchange Offers that have been commenced.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Conflict of Interest Policy</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We take conflicts of interest
seriously and aim to ensure that transactions involving conflicts or potential conflicts are thoroughly examined and only approved by
independent board members.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Because we could be subject
to various conflicts of interest arising from our relationships with Braemar and Ashford Inc., including its subsidiaries, their respective
affiliates and other parties, to mitigate any potential conflicts of interest, we have adopted a number of policies governing conflicts
of interest. Our bylaws require that, at all times, a majority of the Board be independent directors, and our Corporate Governance Guidelines
require that two-thirds of the Board be independent directors at all times that we do not have an independent chairman.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our Corporate Governance
Guidelines provide that, in order to mitigate potential conflicts of interest, any waiver, consent, approval, modification, enforcement,
or elections which the Company may make pursuant to any agreement between the Company, on the one hand, and any of the following entities,
on the other hand, shall be within the exclusive discretion and control of a majority of the independent directors: (a)&nbsp;Braemar
or any of its subsidiaries; (b)&nbsp;Ashford Inc. or any of its subsidiaries; (c)&nbsp;any entity controlled by Mr.&nbsp;Monty J. Bennett
and/or Mr.&nbsp;Archie Bennett, Jr.; and (d)&nbsp;any other entity advised by Ashford Inc. or its subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Additionally, the Board
has adopted our Code of Business Conduct and Ethics, which includes a policy for review of any transactions in which an individual&rsquo;s
private interests may interfere or conflict in any way with the interests of the Company. Pursuant to the Code of Business Conduct and
Ethics, employees must report any actual or potential conflict of interest involving themselves or others to our Executive Vice President,
General Counsel and Secretary. Directors must make such report to our Executive Vice President, General Counsel and Secretary or the
Chairman of the Nominating and Corporate Governance Committee. Officers must make such report to the Chairman of the Nominating and Corporate
Governance Committee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our Related Party Transactions
Committee is a committee composed of three independent directors and is tasked with reviewing any transaction in which our officers,
directors, Ashford Inc. or Braemar or their officers, directors or respective affiliates have an interest, including our advisor or any
other related party and their respective affiliates, before recommending approval by a majority of our independent directors. The Related
Party Transactions Committee can deny a new proposed transaction or recommend for approval to the independent directors. Also, the Related
Party Transactions Committee periodically reviews and reports to independent directors on past approved related party transactions. Finally,
our directors also are subject to provisions of Maryland law that address transactions between Maryland corporations and our directors
or other entities in which our directors have a material financial interest. Such transactions may be voidable under Maryland law, unless
certain safe harbors are met. Our Charter contains a requirement, consistent with one such safe harbor, that any transaction or agreement
involving us, any of our wholly owned subsidiaries or our operating partnership and a director or officer or an affiliate or associate
of any director or officer requires the approval of a majority of disinterested directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Reporting Policies</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Generally speaking, we will
make available to our stockholders certified annual financial statements and annual reports. We are subject to the information reporting
requirements of the Exchange Act. Pursuant to these requirements, we will file periodic reports, proxy statements and other information,
including audited financial statements, with the SEC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in"><A NAME="a_002"></A>OUR
COMPANY</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="margin: 0"><FONT STYLE="font-size: 10pt"><B>Overview</B></FONT></P>



<P STYLE="margin: 0pt 0; font-size: 10pt; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Ashford Hospitality Trust,
Inc., together with its subsidiaries, is an externally-advised REIT. While our portfolio currently consists of upscale hotels and upper
upscale full-service hotels, our investment strategy is predominantly focused on investing in upper upscale full-service hotels in the
U.S. that have a RevPAR generally less than twice the U.S. national average, and in all methods including direct real estate, equity,
and debt. Future investments will predominately be in upper upscale hotels. We own our lodging investments and conduct our business through
Ashford Trust OP, our operating partnership. Ashford OP General Partner LLC, a wholly-owned subsidiary of the Company, serves as the
sole general partner of our operating partnership. Our hotel properties are primarily branded under the widely recognized upscale and
upper upscale brands of Hilton, Hyatt, Marriott and Intercontinental Hotel Group. As of June 30, 2021, we&nbsp;owned interests in the
following assets:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">100
                                            consolidated hotel properties, including 98 directly owned and two owned through a majority-owned
                                            investment in a consolidated entity, which represent 22,313 total rooms (or 22,286 net rooms
                                            excluding those attributable to our partner);</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">90
                                            hotel condominium&nbsp;units at WorldQuest; and</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">16.7%
                                            ownership in OpenKey with a carrying value of $2.5&nbsp;million.</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0"></P>

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<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">For U.S. federal income
tax purposes, we have elected to be treated as a REIT, which subjects us to limitations related to operating hotels. As of June 30, 2021,
our 100 hotel properties were leased or owned by Ashford TRS. Ashford TRS then engages Remington Hotels or third-party hotel management
companies to operate the hotels under management contracts. Hotel operating results related to these properties are included in our consolidated
statements of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We are advised by Ashford
LLC, a subsidiary of Ashford Inc., through our Advisory Agreement. All of the hotel properties in our portfolio are currently asset-managed
by Ashford LLC. We do not have any employees. All of the advisory services that might be provided by employees are provided to us by
Ashford LLC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We do not operate any of
our hotel properties directly; instead we employ hotel management companies to operate them for us under management contracts. Remington
Hotels, a subsidiary of Ashford Inc., manages 68 of our 100 hotel properties and WorldQuest. Third-party hotel management companies manage
our remaining hotel properties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Ashford Inc. also provides
other products and services to us or our hotel properties through certain entities in which Ashford Inc. has an ownership interest. These
products and services include, but are not limited to project management services, debt placement and related services, audio visual
services, real estate advisory services, insurance claims services, hypoallergenic premium rooms, investment management services, broker-dealer
and distribution services and mobile key technology. Effective December&nbsp;31, 2020, the Investment Management Agreement with AIM was
terminated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 2.9pt 0pt 5.5pt; text-align: justify; text-indent: 0.25in">Mr. Monty
J. Bennett is chairman and chief executive officer of Ashford Inc. and, together with Mr. Archie Bennett, Jr., as of June 30, 2021, owned
approximately 608,578 shares of Ashford Inc. common stock, which represented an approximate 20.1% ownership interest in Ashford Inc.,
and owned 18,758,600 shares of Ashford Inc. Series D Convertible Preferred Stock, which is exercisable (at an exercise price of $117.50
per share) into an additional approximate 3,991,191 shares of Ashford Inc. common stock, which if exercised as of June 30, 2021 would
have increased the Bennetts&rsquo; ownership interest in Ashford Inc. to 65.6%, provided that prior to August 8, 2023, the voting power
of the holders of the Ashford Inc. Series D Convertible Preferred Stock is limited to 40% of the combined voting power of all of the
outstanding voting securities of Ashford Inc. entitled to vote on any given matter. The 18,758,600 Series D Convertible Preferred Stock
owned by Mr. Monty J. Bennett and Mr. Archie Bennett, Jr. include 360,000 shares owned by trusts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 2.9pt 0pt 5.5pt; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Business Strategies</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Based on our primary business
objectives and forecasted operating conditions, our current key priorities and financial strategies include, among other things:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">acquisition
                                            of hotel properties, in whole or in part, that we expect will be accretive to our portfolio;</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">disposition
                                            of non-core hotel properties;</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">pursuing
                                            capital market activities to enhance long-term stockholder value;</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">preserving
                                            capital, enhancing liquidity, and continuing current cost saving measures;</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">implementing
                                            selective capital improvements designed to increase profitability and to maintain the quality
                                            of our assets;</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">implementing
                                            effective asset management strategies to minimize operating costs and increase revenues;</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">financing
                                            or refinancing hotels on competitive terms;</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">utilizing
                                            hedges, derivatives and other strategies to mitigate risks;</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">accessing
                                            cost effective capital; and</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">making
                                            other investments or divestitures that the Board deems appropriate.</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our current investment strategy
is to focus on owning predominantly full-service hotels in the upper upscale segment in domestic markets that have RevPAR generally less
than twice the U.S. national average. We believe that as supply, demand, and capital market cycles change, we will be able to shift our
investment strategy to take advantage of new lodging-related investment opportunities as they may develop. Our investments may include:
(i)&nbsp;direct hotel investments; (ii)&nbsp;mezzanine financing through origination or acquisition; (iii)&nbsp;first mortgage financing
through origination or acquisition; (iv)&nbsp;sale-leaseback transactions; and (v)&nbsp;other hospitality transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our strategy is designed
to take advantage of lodging industry conditions and adjust to changes in market circumstances over time. Our assessment of market conditions
will determine asset reallocation strategies. While we seek to capitalize on favorable market fundamentals, conditions beyond our control
may have an impact on overall profitability, our investment opportunities and our investment returns. We will continue to seek ways to
benefit from the cyclical nature of the hotel industry.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">To take full advantage of
future investment opportunities in the lodging industry, we intend to seek investment opportunities according to the asset allocation
strategies described below. However, due to ongoing changes in market conditions, we will continually evaluate the appropriateness of
our investment strategies. The Board may change any or all of these strategies at any time without stockholder approval or notice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><I>Direct Hotel Investments
 &mdash;</I> In selecting hotels to acquire, we target hotels that offer either a high current return or the opportunity to increase in
value through repositioning, capital investments, market-based recovery, or improved management practices. Our direct hotel acquisition
strategy primarily targets full-service upscale and upper upscale hotels with RevPAR less than twice the national average in primary,
secondary, and resort markets, typically throughout the U.S. and will seek to achieve both current income and appreciation. In addition,
we will continue to assess our existing hotel portfolio and make strategic decisions to sell certain under-performing or non-strategic
hotels that no longer fit our investment strategy or criteria due to micro or macro market changes or other reasons.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><I>Other Transactions</I>&#8201;&mdash;&#8201;We
may also seek investment opportunities in other lodging related assets or businesses that offer diversification, attractive risk adjusted
returns, and/or capital allocation benefits, including mezzanine financing, first mortgage financing, and/or sale-leaseback transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Business Segments</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We currently operate in
one business segment within the hotel lodging industry: direct hotel investments. A discussion of our operating segment is incorporated
by reference to our consolidated financial statements which are incorporated by reference herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Financing Strategy</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We often utilize debt to
increase equity returns. When evaluating our future level of indebtedness and making decisions regarding the incurrence of indebtedness,
we consider a number of factors, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our
                                            leverage levels across the portfolio;</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            purchase price of our investments to be acquired with debt financing;</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">impact
                                            on financial covenants;</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">cost
                                            of debt;</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">loan
                                            maturity schedule;</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            estimated market value of our investments upon refinancing;</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            ability of particular investments, and our Company as a whole, to generate cash flow to cover
                                            expected debt service; and</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">trailing
                                            twelve months net operating income of the hotel to be financed.</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0"></P>

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<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We may incur debt in the
form of purchase money obligations to the sellers of properties, publicly or privately placed debt instruments, or financing from banks,
institutional investors, or other lenders. Any such indebtedness may be secured or unsecured by mortgages or other interests in our properties.
This indebtedness may be recourse, non-recourse, or cross-collateralized. If recourse, such recourse may include our general assets or
be limited to the particular investment to which the indebtedness relates. In addition, we may invest in properties or loans subject
to existing loans secured by mortgages or similar liens on the properties, or we may refinance properties acquired on a leveraged basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We may use the proceeds
from any borrowings for working capital, consistent with industry practice, to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">purchase
                                            interests in partnerships or joint ventures;</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">finance
                                            the origination or purchase of debt investments; or</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">finance
                                            acquisitions, expand, redevelop or improve existing properties, or develop new properties
                                            or other uses.</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In addition, if we do not
have sufficient cash available, we may need to borrow to meet taxable income distribution requirements under the Code. No assurances
can be given that we will obtain additional financings or, if we do, what the amount and terms will be. Our failure to obtain future
financing under favorable terms could adversely impact our ability to execute our business strategy. In addition, we may selectively
pursue debt financing on our individual properties and debt investments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="margin: 0"><FONT STYLE="font-size: 10pt"><B>Competition</B></FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The hotel industry is highly
competitive and the hotels in which we invest are subject to competition from other hotels for guests. Competition is based on a number
of factors, most notably convenience of location, availability of rooms, brand affiliation, price, range of services, guest amenities
or accommodations offered and quality of customer service. Competition is often specific to the individual markets in which our properties
are located and includes competition from existing and new hotels. Increased competition could have a material adverse effect on the
occupancy rate, average daily room rate and rooms revenue per available room of our hotels or may require us to make capital improvements
that we otherwise would not have to make, which may result in decreases in our profitability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our principal competitors
include other hotel operating companies, ownership companies and national and international hotel brands. We face increased competition
from providers of less expensive accommodations, such as select-service hotels or independent owner-managed hotels, during periods of
economic downturn when leisure and business travelers become more sensitive to room rates. We also experience competition from alternative
types of accommodations such as home sharing companies and apartment operators offering short-term rentals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="margin: 0"><FONT STYLE="font-size: 10pt"><B>Employees</B></FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We have no employees. Our
appointed officers are provided by Ashford LLC, a subsidiary of Ashford Inc. Advisory services which would otherwise be provided by employees
are provided by subsidiaries of Ashford Inc. and by our appointed officers. Subsidiaries of Ashford Inc. have approximately 96 full-time
employees who provide advisory services to us. These employees directly or indirectly perform various acquisition, development, asset
management, capital markets, accounting, tax, risk management, legal, redevelopment, and corporate management functions pursuant to the
terms of our Advisory Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Governmental Regulations</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our properties are subject
to various federal, state and local regulatory laws and requirements, including, but not limited to, the ADA, zoning regulations, building
codes and land use laws, and building, occupancy and other permit requirements. Noncompliance could result in the imposition of governmental
fines or the award of damages to private litigants. While we believe that we are currently in material compliance with these regulatory
requirements, the requirements may change or new requirements may be imposed that could require significant unanticipated expenditures
by us. Additionally, local zoning and land use laws, environmental statutes, health and safety rules and other governmental requirements
may restrict, or negatively impact, our property operations, or expansion, rehabilitation and reconstruction activities and such regulations
may prevent us from taking advantage of economic opportunities. Future changes in federal, state or local tax regulations applicable
to REITs, real property or income derived from our real estate could impact the financial performance, operations, and value of our properties
and the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Environmental Matters</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Under various federal, state,
and local laws and regulations, an owner or operator of real estate may be liable for the costs of removal or remediation of certain
hazardous or toxic substances on such property. These laws often impose liability without regard to whether the owner knew of, or was
responsible for, the presence of hazardous or toxic substances. Furthermore, a person who arranges for the disposal of a hazardous substance
or transports a hazardous substance for disposal or treatment from property owned by another may be liable for the costs of removal or
remediation of hazardous substances released into the environment at that property. The costs of remediation or removal of such substances
may be substantial, and the presence of such substances, or the failure to promptly remediate such substances, may adversely affect the
owner&rsquo;s ability to sell the affected property or to borrow using the affected property as collateral. In connection with the ownership
and operation of our properties, we, our operating partnership, or Ashford TRS may be potentially liable for any such costs. In addition,
the value of any lodging property loan we originate or acquire would be adversely affected if the underlying property contained hazardous
or toxic substances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Phase&nbsp;I environmental
assessments, which are intended to identify potential environmental contamination for which our properties may be responsible, have been
obtained on substantially all of our properties. Such Phase&nbsp;I environmental assessments included:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">historical
                                            reviews of the properties;</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">reviews
                                            of certain public records;</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">preliminary
                                            investigations of the sites and surrounding properties;</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">screening
                                            for the presence of hazardous substances, toxic substances, and underground storage tanks;
                                            and</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            preparation and issuance of a written report.</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Such Phase&nbsp;I environmental
assessments did not include invasive procedures, such as soil sampling or ground water analysis. Such Phase&nbsp;I environmental assessments
have not revealed any environmental liability that we believe would have a material adverse effect on our business, assets, results of
operations, or liquidity, and we are not aware of any such liability. To the extent Phase&nbsp;I environmental assessments reveal facts
that require further investigation, we would perform a Phase&nbsp;II environmental assessment. However, it is possible that these environmental
assessments will not reveal all environmental liabilities. There may be material environmental liabilities of which we are unaware, including
environmental liabilities that may have arisen since the environmental assessments were completed or updated. No assurances can be given
that: (i)&nbsp;future laws, ordinances, or regulations will not impose any material environmental liability; or (ii)&nbsp;the current
environmental condition of our properties will not be affected by the condition of properties in the vicinity (such as the presence of
leaking underground storage tanks) or by third parties unrelated to us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We believe our properties
are in compliance in all material respects with all federal, state, and local ordinances and regulations regarding hazardous or toxic
substances and other environmental matters. Neither we nor, to our knowledge, any of the former owners of our properties have been notified
by any governmental authority of any material noncompliance, liability, or claim relating to hazardous or toxic substances or other environmental
matters in connection with any of our properties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="margin: 0"><FONT STYLE="font-size: 10pt"><B>Insurance</B></FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We maintain comprehensive
insurance, including liability, property, workers&rsquo; compensation, rental loss, environmental, terrorism, cybersecurity and, when
available on commercially reasonable terms, flood, wind and earthquake insurance, with policy specifications, limits, and deductibles
customarily carried for similar properties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Certain types of losses (for example, matters
of a catastrophic nature such as acts of war or substantial known environmental liabilities) are either uninsurable or require substantial
premiums that are not economically feasible to maintain. Certain types of losses, such as those arising from subsidence activity, are
insurable only to the extent that certain standard policy exceptions to insurability are waived by agreement with the insurer. We believe,
however, that our properties are adequately insured, consistent with industry standards.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Franchise Licenses</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We believe that the public&rsquo;s
perception of quality associated with a franchisor can be an important feature in the operation of a hotel. Franchisors provide a variety
of benefits for franchisees, which include national advertising, publicity, and other marketing programs designed to increase brand awareness,
training of personnel, continuous review of quality standards, and centralized reservation systems.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">As of June 30, 2021, we
owned interests in 100 hotel properties, 93 of which operated under the following franchise licenses or brand management agreements:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Embassy Suites is a registered trademark of Hilton Hospitality,
Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Hilton is a registered trademark of Hilton Hospitality,
Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Hilton Garden Inn is a registered trademark of Hilton Hospitality,
Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Hampton Inn is a registered trademark of Hilton Hospitality,
Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Marriott is a registered trademark of Marriott International,
Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">SpringHill Suites is a registered trademark of Marriott
International, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Residence Inn by Marriott is a registered trademark of Marriott
International, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Courtyard by Marriott is a registered trademark of Marriott
International, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Fairfield Inn by Marriott is a registered trademark of Marriott
International, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">TownePlace Suites is a registered trademark of Marriott
International, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Renaissance is a registered trademark of Marriott International,
Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Ritz-Carlton is a registered trademark of Marriott International,
Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Hyatt Regency is a registered trademark of Hyatt Hotels
Corporation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Sheraton is a registered trademark of Marriott International,
Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">W is a registered trademark of Marriott International, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Westin is a registered trademark of Marriott International,
Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Crowne Plaza is a registered trademark of InterContinental
Hotels Group.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Hotel Indigo is a registered trademark of InterContinental
Hotels Group.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">One Ocean is a registered trademark of Remington Hotels,
LLC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Tribute Portfolio is a registered trademark of Marriott
International, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our management companies,
including Remington Hotels, must operate each hotel pursuant to the terms of the related franchise or brand management agreement and
must use their best efforts to maintain the right to operate each hotel pursuant to such terms. In the event of termination of a particular
franchise or brand management agreement, our management companies must operate any affected hotels under another franchise or brand management
agreement, if any, that we enter into. We anticipate that many of the additional hotels we acquire could be operated under franchise
licenses or brand management agreements as well.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our franchise licenses and
brand management agreements generally specify certain management, operational, recordkeeping, accounting, reporting, and marketing standards
and procedures with which the franchisee or brand operator must comply, including requirements related to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">training
                                            of operational personnel;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">safety;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">maintaining
                                            specified insurance;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">types
                                            of services and products ancillary to guestroom services that may be provided;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">display
                                            of signage; and</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">type,
                                            quality, and age of furniture, fixtures, and equipment included in guestrooms, lobbies, and
                                            other common areas.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin: 0"><FONT STYLE="font-size: 10pt"><B>Seasonality</B></FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our properties&rsquo; operations
historically have been seasonal as certain properties maintain higher occupancy rates during the summer months, while certain other properties
maintain higher occupancy rates during the winter months. This seasonality pattern can cause fluctuations in our quarterly revenue. Quarterly
revenue also may be adversely affected by renovations and repositionings, our managers&rsquo; effectiveness in generating business and
by events beyond our control, such as the COVID-19 pandemic and government-issued travel restrictions in response, extreme weather conditions,
natural disasters, terrorist attacks or alerts, civil unrest, government shutdowns, airline strikes or reduced airline capacity, economic
factors and other considerations affecting travel. To the extent that cash flows from operations are insufficient during any quarter
to enable us to make quarterly distributions to maintain our REIT status due to temporary or seasonal fluctuations in lease revenue,
we expect to utilize cash on hand, cash generated through borrowings and issuances of common stock to fund required distributions. However,
we cannot make any assurances that we will make distributions in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Investments in Real Estate or
Interests in Real Estate</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B><I>Direct Hotel Investments.</I></B>&nbsp;&nbsp;&nbsp;In
selecting hotels to acquire, we target hotels that offer either a high current return or the opportunity to increase in value through
repositioning, capital investments, market-based recovery, or improved management practices. Our direct hotel acquisition strategy primarily
targets full-service upscale and upper upscale hotels with RevPAR less than twice the national average in primary, secondary, and resort
markets, typically throughout the U.S. and will seek to achieve both current income and appreciation. In addition, we will continue to
assess our existing hotel portfolio and make strategic decisions to sell certain under-performing or non-strategic hotels that do not
fit our investment strategy or criteria due to micro or macro market changes or other reasons.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Operating Procedures</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In implementing our business
strategy through investments that satisfy the applicable investment policies described above, we consider each of the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B><I>Asset Review.</I></B>&nbsp;&nbsp;&nbsp;In
making future hotel investment decisions, we will consider several criteria, including:</P>

<P STYLE="margin: 0pt 0; font-size: 10pt; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Number
                                            of Rooms&#8201;&mdash;&#8201;We anticipate acquiring or investing in hotels with at least
                                            75 rooms.</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Ownership
                                            Structure&#8201;&mdash;&#8201;We prefer properties with a fee simple title.</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Management&#8201;&mdash;&#8201;We
                                            prefer that the property is unencumbered by long-term management contracts.</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0"></P>

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<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Franchise
                                            Affiliations&#8201;&mdash;&#8201;We will consider both major franchises as well as independents.</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Competition&#8201;&mdash;&#8201;We
                                            intend to seek properties in areas that lack a substantial new supply of hotel rooms, appear
                                            resilient to down markets and either have an existing broad demand or a growing demand base.</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Physical
                                            Condition&#8201;&mdash;&#8201;The condition of the property that is acceptable to us will
                                            depend on the pricing structure. Major product improvement plans or renovations are acceptable
                                            if the pricing adequately reflects such renovations.</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Available
                                            Financing&#8201;&mdash;&#8201;To the extent we utilize financing in our investments, we will
                                            seek non-recourse financing.</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Amenities&#8201;&mdash;&#8201;We
                                            prefer properties that have amenities (food and beverage, meeting space, fitness equipment,
                                            parking, etc.) consistent with the needs of its targeted customer.</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Operating
                                            Performance&#8201;&mdash;&#8201;We intend to seek hotels that have shown a solid operating
                                            performance or alternatively seek assets where strategic changes in operations or its market
                                            positioning will generate improved revenue and operating margins.</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">New
                                            Supply&#8201;&mdash;&#8201;We invest in markets where the effects of future growth in new
                                            rooms are understood and factored in value considerations.</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Room
                                            Demand Generators&#8201;&mdash;&#8201;We will seek hotels that have a diversified base of
                                            room demand generators or alternatively seek to reposition hotels to capitalize on shifting
                                            the hotel&rsquo;s guest mix in ways to improve operating performance.</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">However, none of these criteria
alone is considered determinative.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B><I>Underwriting Review.</I></B>&nbsp;&nbsp;&nbsp;After
we identify a potential investment, a due diligence team, consisting of in-house and third parties, will conduct detailed due diligence
to assess the potential investment. This due diligence team will follow underwriting guidelines and review a list of property-level issues,
including, but not limited to:</P>

<P STYLE="margin: 0pt 0; font-size: 10pt; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">property
                                            financials;</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">property
                                            condition;</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">environmental
                                            issues;</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">ADA
                                            compliance;</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">title
                                            surveys;</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">competitive
                                            position;</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">brand;</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">market
                                            assessment;</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">advance
                                            booking reports; and</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">marketing
                                            plans.</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B><I>Market Assessments.</I></B>&nbsp;&nbsp;&nbsp;Our
market assessment analysis will entail in-depth evaluation of macro and micro market forces affecting the lodging industry in a given
market and the specific sub-market. We usually process data obtained from numerous industry sources that focus on new supply, changes
in demand patterns, brand expansion plans, performance of key corporations, government initiatives and essential hotel performance data
(<I>e.g.</I>, average daily rate, or ADR, occupancy and RevPAR). We will analyze this information to make near-term and long-term investment
and sales decisions within each market and further within specific sub-markets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B><I>Capital Markets Evaluation.</I></B>&nbsp;&nbsp;&nbsp;We
monitor the capital markets to determine trends in lodging investment patterns and debt-to-equity pricing. We typically maintain a debt
and equity transaction database encompassing recently closed transactions and suggested pricing for new transactions. This information
will assist us in the formulation of competitive pricing trends and may serve as a good indicator of when liquidity gaps or pricing inefficiencies
may exist in the market. We intend to use this pricing knowledge to optimally allocate our assets across our four targeted lodging-related
investment classes to maximize our risk-adjusted returns.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B><I>Value Optimization
Strategies.</I></B>&nbsp;&nbsp;&nbsp;We intend to regularly evaluate the incremental performance and resulting investment actions for
each asset in our portfolio as part of our budget review process. Because of our fluid asset allocation strategy, it will be imperative
that the relative merits of holding a particular property or investment demonstrate benefits in terms of accretion and portfolio diversification.
Our objective in such an evaluation is to confirm that an existing asset adds to stockholder value. The methodology consists of a &ldquo;re-buy&rdquo;
analysis that determines if continuing to hold a particular investment, using forward-looking market growth assumptions, is a valid strategy.
By consistently applying this policy across all investments, we seek to maximize our investment returns by reallocating funds into more
productive asset classes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in"><A NAME="a_003"></A>DISTRIBUTION
POLICY</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">No dividends can be paid
on the Common Stock unless and until all accumulated and unpaid dividends on our outstanding Preferred Stock have been declared and paid.
As of October 18, 2021, the total accumulated unpaid dividend on the outstanding Preferred Stock was approximately $19.3 million. Additionally,
under Maryland law and except for an ability to pay a dividend out of current earnings in certain limited circumstances, no dividend
may be declared or paid by a Maryland corporation if, after giving effect to the dividend, assets will continue to exceed liabilities
and the corporation will be able to continue to pay its debts as they become due in the usual course. As of June 30, 2021, the Company
had a deficit in stockholders&rsquo; equity of approximately $83.2 million and had not generated current earnings from which a dividend
is potentially payable since the year ended December&nbsp;31, 2015. For these and other reasons, there is no expectation that a dividend
on Common Stock can or would be considered or declared at any time in the foreseeable future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">On December&nbsp;8, 2020,
the Board reviewed and approved our 2021 dividend policy and on December&nbsp;11, 2020 announced that the Company does not anticipate
paying any dividends on its outstanding Common Stock and Preferred Stock for any quarter ending during 2021. The Board will continue
to review our dividend policy and make future announcements with respect thereto. We may incur indebtedness to meet distribution requirements
imposed on REITs under the Code to the extent that working capital and cash flow from our investments are insufficient to fund required
distributions. Alternatively, we may elect to pay dividends on our Common Stock in cash or a combination of cash and shares of securities
as permitted under U.S. federal income tax laws governing REIT distribution requirements. We may pay dividends in excess of our cash
flow.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Distributions are authorized
by the Board and declared by us based upon a variety of factors deemed relevant by our directors. No assurance can be given that our
dividend policy, including our dividend policy for 2020 and 2021, will not change in the future. The adoption of a dividend policy does
not commit the Board to declare or not declare future dividends or the amount thereof. The Board will continue to review our dividend
policy on at least a quarterly basis. Our ability to pay distributions to our stockholders will depend, in part, upon our receipt of
distributions from our operating partnership. This, in turn, may depend upon receipt of lease payments with respect to our properties
from indirect subsidiaries of our operating partnership, the management of our properties by our hotel managers and general business
conditions (including the impact of COVID-19). Distributions to our stockholders are generally taxable to our stockholders as ordinary
income. However, since a portion of our investments are equity ownership interests in hotels, which result in depreciation and non-cash
charges against our income, a portion of our distributions may constitute a non-taxable return of capital, to the extent of a stockholder&rsquo;s
tax basis in the stock. To the extent that it is consistent with maintaining our REIT status, we may maintain accumulated earnings of
Ashford TRS in that entity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our Charter allows us to
issue preferred stock with a preference on distributions, such as our Series&nbsp;D Preferred Stock, Series&nbsp;F Preferred Stock, Series&nbsp;G
Preferred Stock, Series&nbsp;H Preferred Stock and Series&nbsp;I Preferred Stock. The partnership agreement of our operating partnership
also allows the operating partnership to issue&nbsp;units with a preference on distributions. The issuance of these series of Preferred
Stock and&nbsp;units together with any similar issuance in the future, given the dividend preference on such stock or&nbsp;units, could
limit our ability to make a dividend distribution to our Common Stockholders. In addition, the same factors impacting the Board&rsquo;s
dividend policy for 2020 and 2021 may impact our ability to pay dividends on our Preferred Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;&#8203;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in"><A NAME="a_004"></A>DESCRIPTION
OF CAPITAL STOCK</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The following is a brief
description of the material terms of our securities that may be offered under this prospectus. This description does not purport to be
complete and is subject in all respects to applicable Maryland law and to the provisions of our Charter and bylaws, which are filed as
exhibits to the registration statement of which this prospectus is a part, and any applicable amendments or supplements thereto, copies
of which are on file with the SEC as described under &ldquo;How to Obtain Additional Information.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="margin: 0"><FONT STYLE="font-size: 10pt"><B>General</B></FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We may offer under this
prospectus shares of Common Stock, par value $0.01 per share. Our Charter provides that we have authority to issue up to 450,000,000
shares of capital stock, consisting of (a)&nbsp;400,000,000 shares of Common Stock and (b)&nbsp;50,000,000 shares of Preferred Stock,
par value $0.01 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Common Stock</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">As of October 29, 2021,
and after the reverse stock split that was effective after the close of business on July 16, 2021, we had 33,599,411 shares of Common
Stock outstanding. The following is a summary of the material terms and provisions of our Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Authorized Capital Shares</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our authorized capital shares
consist of 400,000,000 shares of Common Stock and 50,000,000 shares of Preferred Stock, par value $0.01 per share. All outstanding shares
of our Common Stock are fully paid and nonassessable. There was no change to the number of authorized Common Stock as a result of the
reverse stock split that was effective after the close of business on July 16, 2021.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Voting Rights</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Subject to the provisions
of our Charter regarding the restrictions on transfer of stock, each outstanding share of our Common Stock entitles the holder to one
vote on all matters submitted to a vote of stockholders, including the election of directors and, except as provided with respect to
any other class or series of stock, the holders of such shares will possess the exclusive voting power. Director nominees in an uncontested
election are elected if the votes cast for such nominee&rsquo;s election exceed the votes cast against such nominee&rsquo;s election
(with abstentions and broker non-votes not counted as a vote cast either &ldquo;for&rdquo; or &ldquo;against&rdquo; that director&rsquo;s
election). In the event of a contested election, as defined in our Charter, a plurality voting standard will apply.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Dividend Rights</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Subject to the preferential
rights of any other class or series of stock and to the provisions of the Charter regarding the restrictions on transfer of stock, holders
of shares of our Common Stock are entitled to receive dividends on such stock when, as and if authorized by the Board out of funds legally
available therefor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Liquidation Rights</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Subject to the preferential
rights of any other class or series of stock, holders of shares of our Common Stock are entitled to share ratably in the assets of our
Company legally available for distribution to our stockholders in the event of our liquidation, dissolution or winding up after payment
of or adequate provision for all known debts and liabilities of our Company, including the preferential rights on dissolution of any
class or classes of Preferred Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Other Rights and Preferences</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Holders of shares of our
Common Stock have no preference, conversion, exchange, sinking fund, or redemption and have no preemptive rights to subscribe for any
securities of our Company, and generally have no appraisal rights so long as our Common Stock is listed on a national securities exchange
and except in very limited circumstances involving a merger where our stock is converted into any consideration other than stock of the
successor in the merger and in which our directors, officers, and 5% or greater stockholders receive different consideration than stockholders
generally. Subject to the provisions of the Charter regarding the restrictions on transfer of stock, shares of our Common Stock will
have equal dividend, liquidation and other rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Subject to the provisions
of the Charter regarding the restrictions on transfer of stock, we are not aware of any limitations on the rights to own our Common Stock,
including rights of non-resident or foreign stockholders to hold or exercise voting rights on our Common Stock, imposed by foreign law
or by our Charter or bylaws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: italic 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.1in">Listing</TD><TD></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Common Stock is listed
on the NYSE under the trading symbol &ldquo;AHT.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Power to Reclassify Shares of
Our Capital Stock; Issuance of Additional Shares</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our Charter authorizes the
Board to classify or reclassify any unissued shares of stock from time to time in one or more classes or series of stock; including preferred
stock, and to authorize the issuance of such shares. Prior to issuance of shares of each class or series of capital stock, the Board
is required by Maryland law and by our Charter to set, subject to our Charter restrictions on the transfer of our capital stock, the
terms, preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications
and terms or conditions of redemption for each class or series. When issued, all shares of our capital stock offered by this Prospectus
will be duly authorized, fully paid and nonassessable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We believe that the power
to issue additional shares of Common Stock or Preferred Stock and to classify or reclassify unissued shares of Common Stock or Preferred
Stock and thereafter to issue the classified or reclassified shares provides us with increased flexibility in structuring possible future
financings and acquisitions and in meeting other needs which might arise. These actions can be taken without stockholder approval, unless
stockholder approval is required by applicable law or the rules of any national securities exchange or automated quotation system on
which our securities may be listed or traded. Although we have no present intention of doing so, we could issue a class or series of
capital stock that could delay, defer or prevent a transaction or a change in control of us that might involve a premium price for holders
of Common Stock or otherwise be in their best interest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Preferred Stock</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our Charter authorizes the
Board to classify from time to time any unissued shares of capital stock in one or more classes or series of preferred stock and to reclassify
any previously classified but unissued Preferred Stock of any class or series, in one or more classes or series. As of the date of this
prospectus, there are five classes of Preferred Stock authorized and outstanding: our Series&nbsp;D Preferred Stock, Series&nbsp;F Preferred
Stock, Series&nbsp;G Preferred Stock, Series&nbsp;H Preferred Stock and Series&nbsp;I Preferred Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">If the Exchange Offer and
the Consent Solicitation for a series of Preferred Stock closes and the Proposed Amendments are approved by the holders of Common Stock,
each share of the Preferred Stock of the series not tendered in the Exchange Offers will be converted by the Articles of Amendment into
the right to receive 1.74 shares of our Common Stock, which does not include the same premium to market price of each series of Preferred
Stock that is included in the Consideration Options.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Series&nbsp;D Preferred Stock</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">As of October 18, 2021,
we had 1,174,427 shares of our Series&nbsp;D Preferred Stock outstanding. The following is a summary of the material terms and provisions
of our Series&nbsp;D Preferred Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Authorized Capital Shares</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Board has classified
and designated 9,666,797 shares of Series&nbsp;D Preferred Stock. All outstanding shares of our Series&nbsp;D Preferred Stock are fully
paid and nonassessable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: italic 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.1in">Ranking</TD><TD></TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Series&nbsp;D Preferred
Stock will, with respect to dividend rights and rights upon liquidation, dissolution or winding up of our affairs rank:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">senior
                                            to all classes or series of Common Stock and to all equity securities ranking junior to the
                                            Preferred Stock with respect to dividend rights or rights upon liquidation, dissolution or
                                            winding up of our affairs;</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">on
                                            a parity with all equity securities issued by us the terms of which specifically provide
                                            that those equity securities rank on a parity with the Preferred Stock with respect to dividend
                                            rights or rights upon liquidation, dissolution or winding up of our affairs; and</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">junior
                                            to all equity securities issued by us the terms of which specifically provide that those
                                            equity securities rank senior to the Preferred Stock with respect to dividend rights or rights
                                            upon liquidation, dissolution or winding up of our affairs.</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The term &ldquo;equity securities&rdquo;
does not include convertible debt securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our Series&nbsp;D Preferred
Stock, Series&nbsp;F Preferred Stock, Series&nbsp;G Preferred Stock, Series&nbsp;H Preferred Stock, and Series&nbsp;I Preferred Stock
all rank on a parity with one another.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Voting Rights</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Holders of Series&nbsp;D
Preferred Stock generally have no voting rights, except that if six or more quarterly dividend payments have not been made, the Board
will be expanded by two seats and the holders of Series&nbsp;D Preferred Stock, voting together as a single class with the holders of
all other series of Preferred Stock that has been granted similar voting rights and is considered parity stock with the Series&nbsp;D
Preferred Stock, will be entitled to elect these two directors. In addition, the issuance of senior shares or certain changes to the
terms of the Series&nbsp;D Preferred Stock that would be materially adverse to the rights of holders of Series&nbsp;D Preferred Stock
cannot be made without the affirmative vote or consent of holders of at least 66 2/3% of the outstanding Series&nbsp;D Preferred Stock
and shares of any class or series of shares ranking on a parity with the Series&nbsp;D Preferred Stock which are entitled to similar
voting rights, if any, voting as a single class.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Dividend Rights</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Series&nbsp;D Preferred
Stock accrues a cumulative cash dividend at an annual rate of 8.45% on the $25.00 per share liquidation preference; provided, however,
that during any period of time that both (i)&nbsp;the Series&nbsp;D Preferred Stock is not listed on either the NYSE, NYSE American LLC
(the &ldquo;NYSE American&rdquo;), or the NASDAQ, or on a successor exchange and (ii)&nbsp;we are not subject to the reporting requirements
of the Exchange Act, the Series&nbsp;D Preferred Stock will accrue a cumulative cash dividend at an annual rate of 9.45% on the $25.00
per share liquidation preference (equivalent to an annual dividend rate of $2.3625 per share), which we refer to as a special distribution.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Liquidation Rights</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Upon any voluntary or involuntary
liquidation, dissolution or winding up of our Company, the holders of Series&nbsp;D Preferred Stock will be entitled to receive a liquidation
preference of $25.00 per share, plus an amount equal to all accumulated, accrued and unpaid dividends (whether or not earned or declared)
to the date of liquidation, dissolution or winding up of the affairs of our Company, before any payment or distribution will be made
to or set apart for the holders of any junior stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Other Rights and Preferences</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Series&nbsp;D Preferred
Stock is not convertible or exchangeable for any of our other securities or property, and holders of shares of our Series&nbsp;D Preferred
Stock have no preemptive rights to subscribe for any securities of our Company. Holders of Series&nbsp;D Preferred Stock do not have
redemption rights. Our Series&nbsp;D Preferred Stock is not subject to any sinking fund provisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">During any period in which
we are required to pay a special distribution, holders of the Series&nbsp;D Preferred Stock will become entitled to certain information
rights related thereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Subject to the provisions
of the Charter regarding the restrictions on transfer of stock, we are not aware of any limitations on the rights to own our Series&nbsp;D
Preferred Stock, including rights of non-resident or foreign stockholders to hold or exercise voting rights on our Series&nbsp;D Preferred
Stock, imposed by foreign law or by our Charter or bylaws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: italic 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.1in">Listing</TD><TD></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Series&nbsp;D Preferred
Stock is traded on the NYSE under the trading symbol &ldquo;AHTprD.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Series&nbsp;F Preferred Stock</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">As of October 29, 2021,
we had 1,298,544 shares of our Series&nbsp;F Preferred Stock outstanding. The following is a summary of the material terms and provisions
of our Series&nbsp;F Preferred Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Authorized Capital Shares</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Board has classified
and designated 4,800,000 shares of Series&nbsp;F Preferred Stock. All outstanding shares of our Series&nbsp;F Preferred Stock are fully
paid and nonassessable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: italic 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.1in">Ranking</TD><TD></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Series&nbsp;F Preferred
Stock will, with respect to dividend rights and rights upon liquidation, dissolution or winding up of our affairs rank:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">senior
                                            to all classes or series of Common Stock and to all equity securities ranking junior to the
                                            Preferred Stock with respect to dividend rights or rights upon liquidation, dissolution or
                                            winding up of our affairs;</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">on
                                            a parity with all equity securities issued by us the terms of which specifically provide
                                            that those equity securities rank on a parity with the Preferred Stock with respect to dividend
                                            rights or rights upon liquidation, dissolution or winding up of our affairs; and</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">junior
                                            to all equity securities issued by us the terms of which specifically provide that those
                                            equity securities rank senior to the Preferred Stock with respect to dividend rights or rights
                                            upon liquidation, dissolution or winding up of our affairs.</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The term &ldquo;equity securities&rdquo;
does not include convertible debt securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Voting Rights</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Holders of Series&nbsp;F
Preferred Stock generally have no voting rights, except that if six or more quarterly dividend payments have not been made, the Board
will be expanded by two seats and the holders of Series&nbsp;F Preferred Stock, voting together as a single class with the holders of
all other series of Preferred Stock that has been granted similar voting rights and is considered parity stock with the Series&nbsp;F
Preferred Stock, will be entitled to elect these two directors. In addition, the issuance of senior shares or certain changes to the
terms of the Series&nbsp;F Preferred Stock that would be materially adverse to the rights of holders of Series&nbsp;F Preferred Stock
cannot be made without the affirmative vote or consent of holders of at least 66 2/3% of the outstanding Series&nbsp;F Preferred Stock
and shares of any class or series of shares ranking on a parity with the Series&nbsp;F Preferred Stock which are entitled to similar
voting rights, if any, voting as a single class.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Dividend Rights</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Series&nbsp;F Preferred
Stock accrues a cumulative cash dividend at an annual rate of 7.375% on the $25.00 per share liquidation preference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Liquidation Rights</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Upon any voluntary or involuntary
liquidation, dissolution or winding up of our Company, the holders of Series&nbsp;F Preferred Stock will be entitled to receive a liquidation
preference of $25.00 per share, plus an amount equal to all accumulated, accrued and unpaid dividends (whether or not earned or declared)
to the date of liquidation, dissolution or winding up of the affairs of our Company, before any payment or distribution will be made
to or set apart for the holders of any junior stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Redemption Provisions</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Upon the occurrence of a
Change of Control (as defined below), we may, at our option, redeem the Series&nbsp;F Preferred Stock, in whole or in part within 120&nbsp;days
after the first date on which such Change of Control occurred, by paying $25.00 per share, plus any accrued and unpaid dividends to,
but not including, the date of redemption. If, prior to the Change of Control conversion date, we exercise any of our redemption rights
relating to the Series&nbsp;F Preferred Stock (whether our optional redemption right or our special optional redemption right), the holders
of Series&nbsp;F Preferred Stock will not have the conversion right described below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">A &ldquo;Change of Control&rdquo;
is when, after the original issuance of the Series&nbsp;F Preferred Stock, the following have occurred and are continuing:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            acquisition by any person, including any syndicate or group deemed to be a &ldquo;person&rdquo;
                                            under Section&nbsp;13(d)(3) of the Exchange Act, of beneficial ownership, directly or indirectly,
                                            through a purchase, merger or other acquisition transaction or series of purchases, mergers
                                            or other acquisition transactions of shares of our Company entitling that person to exercise
                                            more than 50% of the total voting power of all shares of our Company entitled to vote generally
                                            in elections of directors (except that such person will be deemed to have beneficial ownership
                                            of all securities that such person has the right to acquire, whether such right is currently
                                            exercisable or is exercisable only upon the occurrence of a subsequent condition); and</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">following
                                            the closing of any transaction referred to in the bullet point above, neither we nor the
                                            acquiring or surviving entity has a class of common securities (or American Depository Receipts
                                            representing such securities) listed on the NYSE, the NYSE American or NASDAQ or listed or
                                            quoted on an exchange or quotation system that is a successor to the NYSE, the NYSE American
                                            or NASDAQ.</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In addition, we may redeem
the Series&nbsp;F Preferred Stock, in whole or from time to time in part, at a cash redemption price equal to 100% of the $25.00 per
share liquidation preference plus all accrued and unpaid dividends to the date fixed for redemption. The Series&nbsp;F Preferred Stock
has no stated maturity and is not subject to any sinking fund or mandatory redemption provisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Conversion Rights</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Upon the occurrence of a
Change of Control, each holder of Series&nbsp;F Preferred Stock will have the right (unless, prior to the Change of Control conversion
date, we have provided or provide notice of our election to redeem the Series&nbsp;F Preferred Stock) to convert some or all of the Series&nbsp;F
Preferred Stock held by such holder on the Change of Control conversion date into a number of shares of our Common Stock per share of
Series&nbsp;F Preferred Stock to be converted equal to the lesser of:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            quotient obtained by dividing (i)&nbsp;the sum of the $25.00 liquidation preference plus
                                            the amount of any accrued and unpaid dividends to, but not including, the Change of Control
                                            conversion date (unless the Change of Control conversion date is after a dividend record
                                            date for the Series&nbsp;F Preferred Stock and prior to the corresponding Series&nbsp;F Preferred
                                            Stock dividend payment date, in which case no additional amount for such accrued and unpaid
                                            dividend will be included in this sum) by (ii)&nbsp;the Common Stock Price (as defined below);
                                            and</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">0.0968992,
                                            subject to certain adjustments;</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0"></P>

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<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">subject, in each case, to provisions for the
receipt of alternative consideration. The &ldquo;Common Stock Price&rdquo; will be (i)&nbsp;the amount of cash consideration per share
of Common Stock, if the consideration to be received in the Change of Control by the holders of our Common Stock is solely cash; or (ii)&nbsp;the
average of the closing prices for our Common Stock on the NYSE for the ten consecutive trading days immediately preceding, but not including,
the effective date of the Change of Control, if the consideration to be received in the Change of Control by the holders of our Common
Stock is other than solely cash.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">If, prior to the Change
of Control conversion date, we have provided or provide a redemption notice, whether pursuant to our special optional redemption right
in connection with a Change of Control or our optional redemption right, holders of Series&nbsp;F Preferred Stock will not have any right
to convert the Series&nbsp;F Preferred Stock in connection with the Change of Control conversion right and any shares of Series&nbsp;F
Preferred Stock selected for redemption that have been tendered for conversion will be redeemed on the related date of redemption instead
of converted on the Change of Control conversion date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Except as provided above
in connection with a Change of Control, the Series&nbsp;F Preferred Stock is not convertible into or exchangeable for any other securities
or property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Other Rights and Preferences</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Holders of shares of our
Series&nbsp;F Preferred Stock have no preemptive rights to subscribe for any securities of our Company. Subject to the provisions of
the Charter regarding the restrictions on transfer of stock, we are not aware of any limitations on the rights to own our Series&nbsp;F
Preferred Stock, including rights of non-resident or foreign stockholders to hold or exercise voting rights on our Series&nbsp;F Preferred
Stock, imposed by foreign law or by our Charter or bylaws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: italic 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.1in">Listing</TD><TD></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Series&nbsp;F Preferred
Stock is traded on the NYSE under the trading symbol &ldquo;AHTprF.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Series&nbsp;G Preferred Stock</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">As of October 29, 2021,
we had 1,635,096 shares of our Series&nbsp;G Preferred Stock outstanding. The following is a summary of the material terms and provisions
of our Series&nbsp;G Preferred Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Authorized Capital Shares</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Board has classified
and designated 6,900,000 shares of Series&nbsp;G Preferred Stock. All outstanding shares of our Series&nbsp;G Preferred Stock are fully
paid and nonassessable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: italic 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.1in">Ranking</TD><TD></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Series&nbsp;G Preferred
Stock will, with respect to dividend rights and rights upon liquidation, dissolution or winding up of our affairs rank:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">senior
                                            to all classes or series of Common Stock and to all equity securities ranking junior to the
                                            Preferred Stock with respect to dividend rights or rights upon liquidation, dissolution or
                                            winding up of our affairs;</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">on
                                            a parity with all equity securities issued by us the terms of which specifically provide
                                            that those equity securities rank on a parity with the Preferred Stock with respect to dividend
                                            rights or rights upon liquidation, dissolution or winding up of our affairs; and</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">junior
                                            to all equity securities issued by us the terms of which specifically provide that those
                                            equity securities rank senior to the Preferred Stock with respect to dividend rights or rights
                                            upon liquidation, dissolution or winding up of our affairs.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The term &ldquo;equity securities&rdquo;
does not include convertible debt securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>


<!-- Field: Split-Segment; Name: 7 -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Voting Rights</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Holders of Series&nbsp;G
Preferred Stock generally have no voting rights, except that if six or more quarterly dividend payments have not been made, the Board
will be expanded by two seats and the holders of Series&nbsp;G Preferred Stock, voting together as a single class with the holders of
all other series of Preferred Stock that has been granted similar voting rights and is considered parity stock with the Series&nbsp;G
Preferred Stock, will be entitled to elect these two directors. In addition, the issuance of senior shares or certain changes to the
terms of the Series&nbsp;G Preferred Stock that would be materially adverse to the rights of holders of Series&nbsp;G Preferred Stock
cannot be made without the affirmative vote or consent of holders of at least 66 2/3% of the outstanding Series&nbsp;G Preferred Stock
and shares of any class or series of shares ranking on a parity with the Series&nbsp;G Preferred Stock which are entitled to similar
voting rights, if any, voting as a single class.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Dividend Rights</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Series&nbsp;G Preferred
Stock accrues a cumulative cash dividend at an annual rate of 7.375% on the $25.00 per share liquidation preference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Liquidation Rights</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Upon any voluntary or involuntary
liquidation, dissolution or winding up of our Company, the holders of Series&nbsp;G Preferred Stock will be entitled to receive a liquidation
preference of $25.00 per share, plus an amount equal to all accumulated, accrued and unpaid dividends (whether or not earned or declared)
to the date of liquidation, dissolution or winding up of the affairs of our Company, before any payment or distribution will be made
to or set apart for the holders of any junior stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Redemption Provisions</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Upon the occurrence of a
Change of Control (as defined below), we may, at our option, redeem the Series&nbsp;G Preferred Stock, in whole or in part within 120&nbsp;days
after the first date on which such Change of Control occurred, by paying $25.00 per share, plus any accrued and unpaid dividends to,
but not including, the date of redemption. If, prior to the Change of Control conversion date, we exercise any of our redemption rights
relating to the Series&nbsp;G Preferred Stock (whether our optional redemption right or our special optional redemption right), the holders
of Series&nbsp;G Preferred Stock will not have the conversion right described below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">A &ldquo;Change of Control&rdquo;
is when, after the original issuance of the Series&nbsp;G Preferred Stock, the following have occurred and are continuing:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            acquisition by any person, including any syndicate or group deemed to be a &ldquo;person&rdquo;
                                            under Section&nbsp;13(d)(3) of the Exchange Act, of beneficial ownership, directly or indirectly,
                                            through a purchase, merger or other acquisition transaction or series of purchases, mergers
                                            or other acquisition transactions of shares of our Company entitling that person to exercise
                                            more than 50% of the total voting power of all shares of our Company entitled to vote generally
                                            in elections of directors (except that such person will be deemed to have beneficial ownership
                                            of all securities that such person has the right to acquire, whether such right is currently
                                            exercisable or is exercisable only upon the occurrence of a subsequent condition); and</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                             </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">following
                                            the closing of any transaction referred to in the bullet point above, neither we nor the
                                            acquiring or surviving entity has a class of common securities (or ADRs representing such
                                            securities) listed on the NYSE, the NYSE American or NASDAQ or listed or quoted on an exchange
                                            or quotation system that is a successor to the NYSE, the NYSE American or NASDAQ.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In addition, we may redeem
the Series&nbsp;G Preferred Stock, in whole or from time to time in part, at a cash redemption price equal to 100% of the $25.00 per
share liquidation preference plus all accrued and unpaid dividends to the date fixed for redemption. The Series&nbsp;G Preferred Stock
has no stated maturity and is not subject to any sinking fund or mandatory redemption provisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Conversion Rights</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Upon the occurrence of a
Change of Control, each holder of Series&nbsp;G Preferred Stock will have the right (unless, prior to the Change of Control conversion
date, we have provided or provide notice of our election to redeem the Series&nbsp;G Preferred Stock) to convert some or all of the Series&nbsp;G
Preferred Stock held by such holder on the Change of Control conversion date into a number of shares of our Common Stock per share of
Series&nbsp;G Preferred Stock to be converted equal to the lesser of:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            quotient obtained by dividing (i)&nbsp;the sum of the $25.00 liquidation preference plus
                                            the amount of any accrued and unpaid dividends to, but not including, the Change of Control
                                            conversion date (unless the Change of Control conversion date is after a dividend record
                                            date for the Series&nbsp;G Preferred Stock and prior to the corresponding Series&nbsp;G Preferred
                                            Stock dividend payment date, in which case no additional amount for such accrued and unpaid
                                            dividend will be included in this sum) by (ii)&nbsp;the Common Stock Price (as defined below);
                                            and</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                    </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">0.083333,
                                            subject to certain adjustments;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">subject, in each case, to provisions for the
receipt of alternative consideration. The &ldquo;Common Stock Price&rdquo; will be (i)&nbsp;the amount of cash consideration per share
of Common Stock, if the consideration to be received in the Change of Control by the holders of our Common Stock is solely cash; or (ii)&nbsp;the
average of the closing prices for our Common Stock on the NYSE for the ten consecutive trading days immediately preceding, but not including,
the effective date of the Change of Control, if the consideration to be received in the Change of Control by the holders of our Common
Stock is other than solely cash.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">If, prior to the Change
of Control conversion date, we have provided or provide a redemption notice, whether pursuant to our special optional redemption right
in connection with a Change of Control or our optional redemption right, holders of Series&nbsp;G Preferred Stock will not have any right
to convert the Series&nbsp;G Preferred Stock in connection with the Change of Control conversion right and any shares of Series&nbsp;G
Preferred Stock selected for redemption that have been tendered for conversion will be redeemed on the related date of redemption instead
of converted on the Change of Control conversion date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Except as provided above
in connection with a Change of Control, the Series&nbsp;G Preferred Stock is not convertible into or exchangeable for any other securities
or property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Other Rights and Preferences</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Holders of shares of our
Series&nbsp;G Preferred Stock have no preemptive rights to subscribe for any securities of our Company. Subject to the provisions of
the Charter regarding the restrictions on transfer of stock, we are not aware of any limitations on the rights to own our Series&nbsp;G
Preferred Stock, including rights of non-resident or foreign stockholders to hold or exercise voting rights on our Series&nbsp;G Preferred
Stock, imposed by foreign law or by our Charter or bylaws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: italic 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.1in">Listing</TD><TD></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Series&nbsp;G Preferred
Stock is traded on the NYSE under the trading symbol &ldquo;AHTprG.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Series&nbsp;H Preferred Stock</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">As of October 29, 2021 we
had 1,313,415 shares of our Series&nbsp;H Preferred Stock outstanding. The following is a summary of the material terms and provisions
of our Series&nbsp;H Preferred Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Authorized Capital Shares</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Board has classified
and designated 3,910,000 shares of Series&nbsp;H Preferred Stock. All outstanding shares of our Series&nbsp;H Preferred Stock are fully
paid and nonassessable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: italic 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.1in">Ranking</TD><TD></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Series&nbsp;H Preferred
Stock will, with respect to dividend rights and rights upon liquidation, dissolution or winding up of our affairs rank:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">senior
                                            to all classes or series of Common Stock and to all equity securities ranking junior to the
                                            Preferred Stock with respect to dividend rights or rights upon liquidation, dissolution or
                                            winding up of our affairs;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                     </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">on
                                            a parity with all equity securities issued by us the terms of which specifically provide
                                            that those equity securities rank on a parity with the Preferred Stock with respect to dividend
                                            rights or rights upon liquidation, dissolution or winding up of our affairs; and</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                        </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">junior
                                            to all equity securities issued by us the terms of which specifically provide that those
                                            equity securities rank senior to the Preferred Stock with respect to dividend rights or rights
                                            upon liquidation, dissolution or winding up of our affairs.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The term &ldquo;equity securities&rdquo;
does not include convertible debt securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Voting Rights</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Holders of Series&nbsp;H
Preferred Stock generally have no voting rights, except that if six or more quarterly dividend payments have not been made, the Board
will be expanded by two seats and the holders of Series&nbsp;H Preferred Stock, voting together as a single class with the holders of
all other series of Preferred Stock that has been granted similar voting rights and is considered parity stock with the Series&nbsp;H
Preferred Stock, will be entitled to elect these two directors. In addition, the issuance of senior shares or certain changes to the
terms of the Series&nbsp;H Preferred Stock that would be materially adverse to the rights of holders of Series&nbsp;H Preferred Stock
cannot be made without the affirmative vote or consent of holders of at least 66 2/3% of the outstanding Series&nbsp;H Preferred Stock
and shares of any class or series of shares ranking on a parity with the Series&nbsp;H Preferred Stock which are entitled to similar
voting rights, if any, voting as a single class.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Dividend Rights</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Series&nbsp;H Preferred
Stock accrues a cumulative cash dividend at an annual rate of 7.50% on the $25.00 per share liquidation preference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Liquidation Rights</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Upon any voluntary or involuntary
liquidation, dissolution or winding up of our Company, the holders of Series&nbsp;H Preferred Stock will be entitled to receive a liquidation
preference of $25.00 per share, plus an amount equal to all accumulated, accrued and unpaid dividends (whether or not earned or declared)
to the date of liquidation, dissolution or winding up of the affairs of our Company, before any payment or distribution will be made
to or set apart for the holders of any junior stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Redemption Provisions</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Upon the occurrence of a
Change of Control (as defined below), we may, at our option, redeem the Series&nbsp;H Preferred Stock, in whole or in part within 120&nbsp;days
after the first date on which such Change of Control occurred, by paying $25.00 per share, plus any accrued and unpaid dividends to,
but not including, the date of redemption. If, prior to the Change of Control conversion date, we exercise any of our redemption rights
relating to the Series&nbsp;H Preferred Stock (whether our optional redemption right or our special optional redemption right), the holders
of Series&nbsp;H Preferred Stock will not have the conversion right described below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">A &ldquo;Change of Control&rdquo;
is when, after the original issuance of the Series&nbsp;H Preferred Stock, the following have occurred and are continuing:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            acquisition by any person, including any syndicate or group deemed to be a &ldquo;person&rdquo;
                                            under Section&nbsp;13(d)(3) of the Exchange Act, of beneficial ownership, directly or indirectly,
                                            through a purchase, merger or other acquisition transaction or series of purchases, mergers
                                            or other acquisition transactions of shares of our Company entitling that person to exercise
                                            more than 50% of the total voting power of all shares of our Company entitled to vote generally
                                            in elections of directors (except that such person will be deemed to have beneficial ownership
                                            of all securities that such person has the right to acquire, whether such right is currently
                                            exercisable or is exercisable only upon the occurrence of a subsequent condition); and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">following
                                            the closing of any transaction referred to in the bullet point above, neither we nor the
                                            acquiring or surviving entity has a class of common securities (or ADRs representing such
                                            securities) listed on the NYSE, the NYSE American or NASDAQ or listed or quoted on an exchange
                                            or quotation system that is a successor to the NYSE, the NYSE American or NASDAQ.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In addition, we may redeem
the Series&nbsp;H Preferred Stock, in whole or from time to time in part, at a cash redemption price equal to 100% of the $25.00 per
share liquidation preference plus all accrued and unpaid dividends to the date fixed for redemption. The Series&nbsp;H Preferred Stock
has no stated maturity and is not subject to any sinking fund or mandatory redemption provisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Conversion Rights</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Upon the occurrence of a
Change of Control, each holder of Series&nbsp;H Preferred Stock will have the right (unless, prior to the Change of Control conversion
date, we have provided or provide notice of our election to redeem the Series&nbsp;H Preferred Stock) to convert some or all of the Series&nbsp;H
Preferred Stock held by such holder on the Change of Control conversion date into a number of shares of our Common Stock per share of
Series&nbsp;H Preferred Stock to be converted equal to the lesser of:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            quotient obtained by dividing (i)&nbsp;the sum of the $25.00 liquidation preference plus
                                            the amount of any accrued and unpaid dividends to, but not including, the Change of Control
                                            conversion date (unless the Change of Control conversion date is after a dividend record
                                            date for the Series&nbsp;H Preferred Stock and prior to the corresponding Series&nbsp;H Preferred
                                            Stock dividend payment date, in which case no additional amount for such accrued and unpaid
                                            dividend will be included in this sum) by (ii)&nbsp;the Common Stock Price (as defined below);
                                            and</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                    </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">0.0825083,
                                            subject to certain adjustments;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">subject, in each case, to provisions for the
receipt of alternative consideration. The &ldquo;Common Stock Price&rdquo; will be (i)&nbsp;the amount of cash consideration per share
of Common Stock, if the consideration to be received in the Change of Control by the holders of our Common Stock is solely cash; or (ii)&nbsp;the
average of the closing prices for our Common Stock on the NYSE for the ten consecutive trading days immediately preceding, but not including,
the effective date of the Change of Control, if the consideration to be received in the Change of Control by the holders of our Common
Stock is other than solely cash.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">If, prior to the Change
of Control conversion date, we have provided or provide a redemption notice, whether pursuant to our special optional redemption right
in connection with a Change of Control or our optional redemption right, holders of Series&nbsp;H Preferred Stock will not have any right
to convert the Series&nbsp;H Preferred Stock in connection with the Change of Control conversion right and any shares of Series&nbsp;H
Preferred Stock selected for redemption that have been tendered for conversion will be redeemed on the related date of redemption instead
of converted on the Change of Control conversion date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Except as provided above
in connection with a Change of Control, the Series&nbsp;H Preferred Stock is not convertible into or exchangeable for any other securities
or property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Other Rights and Preferences</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Holders of shares of our
Series&nbsp;H Preferred Stock have no preemptive rights to subscribe for any securities of our Company. Subject to the provisions of
the Charter regarding the restrictions on transfer of stock, we are not aware of any limitations on the rights to own our Series&nbsp;H
Preferred Stock, including rights of non-resident or foreign stockholders to hold or exercise voting rights on our Series&nbsp;H Preferred
Stock, imposed by foreign law or by our Charter or bylaws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: italic 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.1in">Listing</TD><TD></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Series&nbsp;H Preferred
Stock is traded on the NYSE under the trading symbol &ldquo;AHTprH.&rdquo;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Series&nbsp;I Preferred Stock</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">As of October 29, 2021 we
had 1,252,923 shares of our Series&nbsp;I Preferred Stock outstanding. The following is a summary of the material terms and provisions
of our Series&nbsp;I Preferred Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Authorized Capital Shares</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Board has classified
and designated 6,210,000 shares of Series&nbsp;I Preferred Stock. All outstanding shares of our Series&nbsp;I Preferred Stock are fully
paid and nonassessable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: italic 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.1in">Ranking</TD><TD></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Series&nbsp;I Preferred
Stock will, with respect to dividend rights and rights upon liquidation, dissolution or winding up of our affairs rank:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">senior
                                            to all classes or series of Common Stock and to all equity securities ranking junior to the
                                            Preferred Stock with respect to dividend rights or rights upon liquidation, dissolution or
                                            winding up of our affairs;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                     </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">on
                                            a parity with all equity securities issued by us the terms of which specifically provide
                                            that those equity securities rank on a parity with the Preferred Stock with respect to dividend
                                            rights or rights upon liquidation, dissolution or winding up of our affairs; and</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                        </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">junior
                                            to all equity securities issued by us the terms of which specifically provide that those
                                            equity securities rank senior to the Preferred Stock with respect to dividend rights or rights
                                            upon liquidation, dissolution or winding up of our affairs.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The term &ldquo;equity securities&rdquo;
does not include convertible debt securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Voting Rights</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Holders of Series&nbsp;I
Preferred Stock generally have no voting rights, except that if six or more quarterly dividend payments have not been made, the Board
will be expanded by two seats and the holders of Series&nbsp;I Preferred Stock, voting together as a single class with the holders of
all other series of Preferred Stock that has been granted similar voting rights and is considered parity stock with the Series&nbsp;I
Preferred Stock, will be entitled to elect these two directors. In addition, the issuance of senior shares or certain changes to the
terms of the Series&nbsp;I Preferred Stock that would be materially adverse to the rights of holders of Series&nbsp;I Preferred Stock
cannot be made without the affirmative vote or consent of holders of at least 66 2/3% of the outstanding Series&nbsp;I Preferred Stock
and shares of any class or series of shares ranking on a parity with the Series&nbsp;I Preferred Stock which are entitled to similar
voting rights, if any, voting as a single class.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Dividend Rights</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Series&nbsp;I Preferred
Stock accrues a cumulative cash dividend at an annual rate of 7.50% on the $25.00 per share liquidation preference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Liquidation Rights</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Upon any voluntary or involuntary
liquidation, dissolution or winding up of our Company, the holders of Series&nbsp;I Preferred Stock will be entitled to receive a liquidation
preference of $25.00 per share, plus an amount equal to all accumulated, accrued and unpaid dividends (whether or not earned or declared)
to the date of liquidation, dissolution or winding up of the affairs of our Company, before any payment or distribution will be made
to or set apart for the holders of any junior stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Redemption Provisions</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Upon the occurrence of a
Change of Control (as defined below), we may, at our option, redeem the Series&nbsp;I Preferred Stock, in whole or in part within 120&nbsp;days
after the first date on which such Change of Control occurred, by paying $25.00 per share, plus any accrued and unpaid dividends to,
but not including, the date of redemption. If, prior to the Change of Control conversion date, we exercise any of our redemption rights
relating to the Series&nbsp;I Preferred Stock (whether our optional redemption right or our special optional redemption right), the holders
of Series&nbsp;I Preferred Stock will not have the conversion right described below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">A &ldquo;Change of Control&rdquo;
is when, after the original issuance of the Series&nbsp;I Preferred Stock, the following have occurred and are continuing:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            acquisition by any person, including any syndicate or group deemed to be a &ldquo;person&rdquo;
                                            under Section&nbsp;13(d)(3) of the Exchange Act, of beneficial ownership, directly or indirectly,
                                            through a purchase, merger or other acquisition transaction or series of purchases, mergers
                                            or other acquisition transactions of shares of our Company entitling that person to exercise
                                            more than 50% of the total voting power of all shares of our Company entitled to vote generally
                                            in elections of directors (except that such person will be deemed to have beneficial ownership
                                            of all securities that such person has the right to acquire, whether such right is currently
                                            exercisable or is exercisable only upon the occurrence of a subsequent condition); and</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                             </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">following
                                            the closing of any transaction referred to in the bullet point above, neither we nor the
                                            acquiring or surviving entity has a class of common securities (or ADRs representing such
                                            securities) listed on the NYSE, the NYSE American or NASDAQ or listed or quoted on an exchange
                                            or quotation system that is a successor to the NYSE, the NYSE American or NASDAQ.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In addition, on and after
November&nbsp;17, 2022, we may redeem the Series&nbsp;I Preferred Stock, in whole or from time to time in part, at a cash redemption
price equal to 100% of the $25.00 per share liquidation preference plus all accrued and unpaid dividends to the date fixed for redemption.
The Series&nbsp;I Preferred Stock has no stated maturity and is not subject to any sinking fund or mandatory redemption provisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Conversion Rights</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Upon the occurrence of a
Change of Control, each holder of Series&nbsp;I Preferred Stock will have the right (unless, prior to the Change of Control conversion
date, we have provided or provide notice of our election to redeem the Series&nbsp;I Preferred Stock) to convert some or all of the Series&nbsp;I
Preferred Stock held by such holder on the Change of Control conversion date into a number of shares of our Common Stock per share of
Series&nbsp;I Preferred Stock to be converted equal to the lesser of:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            quotient obtained by dividing (i)&nbsp;the sum of the $25.00 liquidation preference plus
                                            the amount of any accrued and unpaid dividends to, but not including, the Change of Control
                                            conversion date (unless the Change of Control conversion date is after a dividend record
                                            date for the Series&nbsp;I Preferred Stock and prior to the corresponding Series&nbsp;I Preferred
                                            Stock dividend payment date, in which case no additional amount for such accrued and unpaid
                                            dividend will be included in this sum) by (ii)&nbsp;the Common Stock Price (as defined below);
                                            and</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                    </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">0.0806452,
                                            subject to certain adjustments;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">subject, in each case, to provisions for the
receipt of alternative consideration. The &ldquo;Common Stock Price&rdquo; will be (i)&nbsp;the amount of cash consideration per share
of Common Stock, if the consideration to be received in the Change of Control by the holders of our Common Stock is solely cash; or (ii)&nbsp;the
average of the closing prices for our Common Stock on the NYSE for the ten consecutive trading days immediately preceding, but not including,
the effective date of the Change of Control, if the consideration to be received in the Change of Control by the holders of our Common
Stock is other than solely cash.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">If, prior to the Change
of Control conversion date, we have provided or provide a redemption notice, whether pursuant to our special optional redemption right
in connection with a Change of Control or our optional redemption right, holders of Series&nbsp;I Preferred Stock will not have any right
to convert the Series&nbsp;I Preferred Stock in connection with the Change of Control conversion right and any shares of Series&nbsp;I
Preferred Stock selected for redemption that have been tendered for conversion will be redeemed on the related date of redemption instead
of converted on the Change of Control conversion date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Except as provided above
in connection with a Change of Control, the Series&nbsp;I Preferred Stock is not convertible into or exchangeable for any other securities
or property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">Other Rights and Preferences</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Holders of shares of our
Series&nbsp;I Preferred Stock have no preemptive rights to subscribe for any securities of our Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">During any period that we
are not subject to the reporting requirements of the Exchange Act, and any Series&nbsp;I Preferred Stock is outstanding, holders of the
Series&nbsp;I Preferred Stock will become entitled to certain information rights related thereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Subject to the provisions
of the Charter regarding the restrictions on transfer of stock, we are not aware of any limitations on the rights to own our Series&nbsp;I
Preferred Stock, including rights of non-resident or foreign stockholders to hold or exercise voting rights on our Series&nbsp;I Preferred
Stock, imposed by foreign law or by our Charter or bylaws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: italic 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.1in">Listing</TD><TD></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Series&nbsp;I Preferred
Stock is traded on the NYSE under the trading symbol &ldquo;AHTprI.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Restrictions on Ownership and
Transfer</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In order for us to qualify
as a REIT under the Code, not more than 50% of the value of the outstanding shares of our stock may be owned, actually or constructively,
by five or fewer individuals (as defined in the Code to include certain entities) during the last half of a taxable year (other than
the first year for which an election to be a REIT has been made by us). In addition, if we, or one or more owners (actually or constructively)
of 10% or more of us, actually or constructively owns 10% or more of a tenant of ours (or a tenant of any partnership in which we are
a partner), the rent received by us (either directly or through any such partnership) from such tenant will not be qualifying income
for purposes of the REIT gross income tests of the Code. Our stock must also be beneficially owned by 100 or more persons during at least
335&nbsp;days of a taxable year of 12 months or during a proportionate part of a shorter taxable year (other than the first year for
which an election to be a REIT has been made by us).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our Charter contains restrictions
on the ownership and transfer of our capital stock that are intended to assist us in complying with these requirements and continuing
to qualify as a REIT. The relevant sections of our Charter provide that, subject to the exceptions described below, no person or persons
acting as a group may own, or be deemed to own by virtue of the attribution provisions of the Code, more than (i)&nbsp;9.8% of the lesser
of the number or value of shares of our Common Stock outstanding or (ii)&nbsp;9.8% of the lesser of the number or value of the issued
and outstanding preferred or other shares of any class or series of our stock. We refer to this restriction as the &ldquo;ownership limit.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The ownership attribution
rules under the Code are complex and may cause stock owned actually or constructively by a group of related individuals and/or entities
to be owned constructively by one individual or entity. As a result, the acquisition of less than 9.8% of our Common Stock (or the acquisition
of an interest in an entity that owns, actually or constructively, our Common Stock) by an individual or entity, could, nevertheless
cause that individual or entity, or another individual or entity, to own constructively in excess of 9.8% of the outstanding Common Stock
and thereby subject the Common Stock to the ownership limit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Board may, in its sole
discretion, waive the ownership limit with respect to one or more stockholders who would not be treated as &ldquo;individuals&rdquo;
for purposes of the Code if it determines that such ownership will not cause any &ldquo;individual&rsquo;s&rdquo; beneficial ownership
of shares of our capital stock to jeopardize our status as a REIT (for example, by causing any tenant of ours to be considered a &ldquo;related
party tenant&rdquo; for purposes of the REIT qualification rules).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">As a condition of our waiver,
the Board may require an opinion of counsel or Internal Revenue Service ruling satisfactory to the Board, and/or representations or undertakings
from the applicant with respect to preserving our REIT status.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In connection with the waiver
of the ownership limit or at any other time, the Board may decrease the ownership limit for all other persons and entities; provided,
however, that the decreased ownership limit will not be effective for any person or entity whose&nbsp;percentage ownership in our capital
stock is in excess of such decreased ownership limit until such time as such person or entity&rsquo;s&nbsp;percentage of our capital
stock equals or falls below the decreased ownership limit, but any further acquisition of our capital stock in excess of such&nbsp;percentage
ownership of our capital stock will be in violation of the ownership limit. Additionally, the new ownership limit may not allow five
or fewer &ldquo;individuals&rdquo; &#8203;(as defined for purposes of the REIT ownership restrictions under the Code) to beneficially
own more than 49.0% of the value of our outstanding capital stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our Charter provisions further
prohibit:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">any
                                            person from actually or constructively owning shares of our capital stock that would result
                                            in us being &ldquo;closely held&rdquo; under Section&nbsp;856(h) of the Code or otherwise
                                            cause us to fail to qualify as a REIT; and</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                        </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">any
                                            person from transferring shares of our capital stock if such transfer would result in shares
                                            of our stock being beneficially owned by fewer than 100 persons (determined without reference
                                            to any rules of attribution).</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Any person who acquires
or attempts or intends to acquire beneficial or constructive ownership of shares of our Common Stock that will or may violate any of
the foregoing restrictions on transferability and ownership will be required to give notice immediately to us and provide us with such
other information as we may request in order to determine the effect of such transfer on our status as a REIT. The foregoing provisions
on transferability and ownership will not apply if the Board determines that it is no longer in our best interests to qualify, or to
continue to qualify, as a REIT.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Pursuant to our Charter,
if any purported transfer of our capital stock or any other event would otherwise result in any person violating the ownership limits
or the other restrictions in our Charter, then any such purported transfer will be void and of no force or effect with respect to the
purported transferee or owner (collectively referred to hereinafter as the &ldquo;purported owner&rdquo;) as to that number of shares
in excess of the ownership limit (rounded up to the nearest whole share). The number of shares in excess of the ownership limit will
be automatically transferred to, and held by, a trust for the exclusive benefit of one or more charitable organizations selected by us.
The trustee of the trust will be designated by us and must be unaffiliated with us and with any purported owner. The automatic transfer
will be effective as of the close of business on the business day prior to the date of the violative transfer or other event that results
in a transfer to the trust. Any dividend or other distribution paid to the purported owner, prior to our discovery that the shares had
been automatically transferred to a trust as described above, must be repaid to the trustee upon demand for distribution to the beneficiary
of the trust and all dividends and other distributions paid by us with respect to such &ldquo;excess&rdquo; shares prior to the sale
by the trustee of such shares shall be paid to the trustee for the beneficiary. If the transfer to the trust as described above is not
automatically effective, for any reason, to prevent violation of the applicable ownership limit, then our Charter provides that the transfer
of the excess shares will be void. Subject to Maryland law, effective as of the date that such excess shares have been transferred to
the trust, the trustee shall have the authority (at the trustee&rsquo;s sole discretion and subject to applicable law) (i)&nbsp;to rescind
as void any vote cast by a purported owner prior to our discovery that such shares have been transferred to the trust and (ii)&nbsp;to
recast such vote in accordance with the desires of the trustee acting for the benefit of the beneficiary of the trust, provided that
if we have already taken irreversible action, then the trustee shall not have the authority to rescind and recast such vote.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Shares of our capital stock
transferred to the trustee are deemed offered for sale to us, or our designee, at a price per share equal to the lesser of (i)&nbsp;the
price paid by the purported owner for the shares (or, if the event which resulted in the transfer to the trust did not involve a purchase
of such shares of our capital stock at market price, the market price on the day of the event which resulted in the transfer of such
shares of our capital stock to the trust) and (ii)&nbsp;the market price on the date we, or our designee, accepts such offer. We have
the right to accept such offer until the trustee has sold the shares of our capital stock held in the trust pursuant to the clauses discussed
below. Upon a sale to us, the interest of the charitable beneficiary in the shares sold terminates and the trustee must distribute the
net proceeds of the sale to the purported owner and any dividends or other distributions held by the trustee with respect to such capital
stock will be paid to the charitable beneficiary.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">If we do not buy the shares,
the trustee must, within 20&nbsp;days of receiving notice from us of the transfer of shares to the trust, sell the shares to a person
or entity designated by the trustee who could own the shares without violating the ownership limits. After that, the trustee must distribute
to the purported owner an amount equal to the lesser of (i)&nbsp;the net price paid by the purported owner for the shares (or, if the
event which resulted in the transfer to the trust did not involve a purchase of such shares at market price, the market price on the
day of the event which resulted in the transfer of such shares of our capital stock to the trust) and (ii)&nbsp;the net sales proceeds
received by the trust for the shares. Any proceeds in excess of the amount distributable to the purported owner will be distributed to
the beneficiary.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our Charter also provides
that &ldquo;Benefit Plan&nbsp;Investors&rdquo; &#8203;(as defined in our Charter) may not hold, individually or in the aggregate, 25%
or more of the value of any class or series of shares of our capital stock to the extent such class or series does not constitute &ldquo;Publicly
Offered Securities&rdquo; &#8203;(as defined in our Charter).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">All persons who own, directly
or by virtue of the attribution provisions of the Code, more than 5% (or such other&nbsp;percentage as provided in the regulations promulgated
under the Code) of the lesser of the number or value of the shares of our outstanding capital stock must give written notice to us within
30&nbsp;days after the end of each calendar year. In addition, each stockholder will, upon demand, be required to disclose to us in writing
such information with respect to the direct, indirect and constructive ownership of shares of our stock as the Board deems reasonably
necessary to comply with the provisions of the Code applicable to a REIT, to comply with the requirements or any taxing authority or
governmental agency or to determine any such compliance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">All certificates representing
shares of our capital stock bear a legend referring to the restrictions described above. &#8203;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in"><A NAME="y_006"></A>MATERIAL
U.S. FEDERAL INCOME TAX CONSIDERATIONS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The following discussion
is a summary of the material U.S. federal income tax considerations that may be relevant to a prospective holder of our Common Stock.
The discussion does not address all aspects of taxation that may be relevant to particular investors in light of their personal investment
or tax circumstances, or to certain types of investors that are subject to special treatment under the federal income tax laws, such
as:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">insurance
                                            companies;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                             </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">financial
                                            institutions or broker-dealers;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                  </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">tax-exempt
                                            organizations (except to the limited extent discussed in &ldquo;&mdash; Taxation of Tax-Exempt
                                            Stockholders&rdquo;);</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                               </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">passive
                                            foreign investment companies or controlled foreign corporations;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                                 </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">persons
                                            who are not citizens or residents of the United States (except to the limited extent discussed
                                            in &ldquo;&mdash; Taxation of Non-U.S. Holders of Stock&rdquo; and &ldquo;Holders of our
                                            Debt Securities&#8201;&mdash;&#8201;Non-U.S. Holders&rdquo;);</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                          </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">investors
                                            who hold or will hold securities as part of hedging or conversion transactions;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                                                  </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">investors
                                            subject to federal alternative minimum tax;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                              </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">investors
                                            that have a principal place of business or &ldquo;tax home&rdquo; outside the United States;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                                                               </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">investors
                                            whose functional currency is not the United States dollar;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                             </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">U.S.
                                            expatriates;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                          </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">investors
                                            subject to special rules under Code Section&nbsp;892;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                        </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">persons
                                            who mark-to-market our securities;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                   </TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0"></P>

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<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">subchapter
                                            S corporations;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                   </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">regulated
                                            investment companies and REITs;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                  </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">and
                                            persons who receive our securities through the exercise of employee stock options or otherwise
                                            as compensation.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">If a partnership, entity
or arrangement treated as a partnership for U.S. federal income tax purposes holds our Common Stock, the U.S. federal income tax treatment
of a partner in the partnership will generally depend on the status of the partner and the activities of the partnership. If you are
a partnership holding our Common Stock, you should consult your tax advisor regarding the consequences to the partnership and its partners
of the purchase, ownership and disposition of our Common Stock by the partnership.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In addition, this discussion
is limited to persons who hold our Common Stock as a &ldquo;capital asset&rdquo; (generally, property held for investment) within the
meaning of Section&nbsp;1221 of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The statements of law in
this discussion are based on current provisions of the Code, existing, temporary and final Treasury regulations thereunder, and current
administrative rulings and court decisions. No assurance can be given that future legislative, judicial, or administrative actions or
decisions, which may be retroactive in effect, will not affect the accuracy of any statements in this prospectus with respect to the
transactions entered into or contemplated prior to the effective date of such changes. We have not received any rulings from the IRS
concerning our qualification as a REIT. Accordingly, no assurance can be given that the IRS would not assert, or that a court would not
sustain, a position contrary to any tax consequences described below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B>We urge you to consult
your own tax advisor regarding the specific tax consequences to you of ownership of our Common Stock and of our election to be taxed
as a REIT. Specifically, we urge you to consult your own tax advisor regarding the federal, state, local, foreign, and other tax consequences
of such ownership and election and regarding potential changes in applicable tax laws.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Taxation of Our Company</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We have elected to be taxed
as a REIT under the U.S. federal income tax laws. We believe that, commencing with our short year ending December&nbsp;31, 2003, we have
been organized and operated in such a manner as to qualify for taxation as a REIT under the Code, and we intend to continue to operate
in such a manner, but no assurance can be given that we will operate in a manner so as to continue to qualify as a REIT. This section
discusses the laws governing the U.S. federal income tax treatment of a REIT and its investors. These laws are highly technical and complex.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">If we qualify as a REIT,
we generally will not be subject to U.S. federal income tax on the taxable income that we distribute to our stockholders. The benefit
of that tax treatment is that it avoids the &ldquo;double taxation,&rdquo; or taxation at both the corporate and stockholder levels,
that generally results from owning stock in a C corporation. However, we will be subject to federal tax in the following circumstances:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">We
                                            will pay U.S. federal income tax at regular corporate rates on taxable income, including
                                            net capital gain, that we do not distribute to our stockholders during, or within a specified
                                            time period after, the calendar year in which the income is earned.</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                    </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">We
                                            will pay income tax at the highest corporate rate on (1)&nbsp;net income from the sale or
                                            other disposition of property acquired through foreclosure (&ldquo;foreclosure property&rdquo;)
                                            that we hold primarily for sale to customers in the ordinary course of business and (2)&nbsp;other
                                            non-qualifying income from foreclosure property.</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">We
                                            will pay a 100% tax on net income from sales or other dispositions of property, other than
                                            foreclosure property, that we hold primarily for sale to customers in the ordinary course
                                            of business.</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                    </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">If
                                            we fail to satisfy the 75% gross income test or the 95% gross income test, as described below
                                            under &ldquo;&mdash; Income Tests,&rdquo; and nonetheless continue to qualify as a REIT because
                                            we meet other requirements, we will pay a 100% tax on (1)&nbsp;the gross income attributable
                                            to the greater of the amount by which we fail the 75% and 95% gross income tests, multiplied
                                            by (2)&nbsp;a fraction intended to reflect our profitability.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">If
                                            we fail to distribute during a calendar year at least the sum of (1)&nbsp;85% of our REIT
                                            ordinary income for such year, (2)&nbsp;95% of our REIT capital gain net income for such
                                            year, and (3)&nbsp;any undistributed taxable income from prior periods, we will pay a 4%
                                            nondeductible excise tax on the excess of this required distribution over the sum of the
                                            amount we actually distributed, plus any retained amounts on which income tax has been paid
                                            at the corporate level.</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                          </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">We
                                            may elect to retain and pay income tax on our net long-term capital gain. In that case, a
                                            U.S. holder (as defined below under &ldquo;&mdash; Taxation of Taxable U.S. Holders of Common
                                            Stock&rdquo;) would be taxed on its proportionate share of our undistributed long-term capital
                                            gain (to the extent that a timely designation of such gain is made by us to the stockholder)
                                            and would receive a credit or refund for its proportionate share of the tax we paid.</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                          </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">If
                                            we acquire any asset from a C corporation, a corporation that has been a C corporation or
                                            a corporation that generally is subject to full corporate-level tax, in a merger or other
                                            transaction in which we acquire a basis in the asset that is determined by reference to the
                                            C corporation&rsquo;s basis in the asset, we will pay tax at the highest regular corporate
                                            rate applicable if we recognize gain on the sale or disposition of such asset during a specified
                                            period after we acquire such asset. The amount of gain on which we will pay tax generally
                                            is the lesser of: (1)&nbsp;the amount of gain that we recognize at the time of the sale or
                                            disposition; or (2)&nbsp;the amount of gain that we would have recognized if we had sold
                                            the asset at the time we acquired the asset.</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                  </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">We
                                            will incur a 100% excise tax on certain transactions with a TRS that are not conducted on
                                            an arm&rsquo;s-length basis and we will incur such 100% excise tax if it is determined we
                                            have been undercharged for certain services provided by a TRS.</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                            </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">If
                                            we fail to satisfy certain asset tests, described below under &ldquo;&mdash; Asset Tests&rdquo;
                                            and nonetheless continue to qualify as a REIT because we meet certain other requirements,
                                            we will be subject to a tax of the greater of $50,000 or at the highest corporate rate on
                                            the income generated by the non-qualifying assets.</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">We
                                            may be subject to a $50,000 tax for each failure if we fail to satisfy certain REIT qualification
                                            requirements, other than income tests or asset tests, and the failure is due to reasonable
                                            cause and not willful neglect.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In addition, notwithstanding
our qualification as a REIT, we may also have to pay certain state and local income taxes, because not all states and localities treat
REITs in the same manner that they are treated for U.S. federal income tax purposes. Moreover, as further described below, any TRS in
which we own an interest will be subject to federal and state corporate income tax on its taxable income.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Requirements for REIT Qualification</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">A REIT is a corporation,
trust, or association that meets the following requirements:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">(1)</TD><TD STYLE="text-align: justify">it is managed by one or more trustees
                                            or directors;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                             </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">(2)</TD><TD STYLE="text-align: justify">its beneficial ownership is evidenced
                                            by transferable shares or by transferable certificates of beneficial interest;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                   </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">(3)</TD><TD STYLE="text-align: justify">it would be taxable as a domestic
                                            corporation but for the REIT provisions of the U.S. federal income tax laws;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
               </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">(4)</TD><TD STYLE="text-align: justify">it is neither a financial institution
                                            nor an insurance company subject to special provisions of the U.S. federal income tax laws;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                  </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">(5)</TD><TD STYLE="text-align: justify">at least 100 persons are beneficial
                                            owners of its shares or ownership certificates;</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0"></P>

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<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">(6)</TD><TD STYLE="text-align: justify">no more than 50% in value of its
                                            outstanding shares or ownership certificates is owned, directly or indirectly, by five or
                                            fewer individuals, as defined in the U.S. federal income tax laws to include certain entities,
                                            during the last half of each taxable year;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                       </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">(7)</TD><TD STYLE="text-align: justify">it elects to be a REIT, or has
                                            made such election for a previous taxable year, and satisfies all relevant filing and other
                                            administrative requirements established by the IRS that must be met to elect and maintain
                                            REIT status;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                 </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">(8)</TD><TD STYLE="text-align: justify">it uses a calendar year for U.S.
                                            federal income tax purposes and complies with the recordkeeping requirements of the U.S.
                                            federal income tax laws;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                              </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">(9)</TD><TD STYLE="text-align: justify">it meets certain other qualification
                                            tests, described below, regarding the nature of its income and assets and the amount of its
                                            distributions; and</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                  </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">(10)</TD><TD STYLE="text-align: justify">it has no earnings and profits
                                            from any non-REIT taxable year at the close of any taxable year.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We must meet requirements
1 through 4, 7, 8 and 9 during our entire taxable year, must meet requirement 10 at the close of each taxable year and must meet requirement
5 during at least 335&nbsp;days of a taxable year of 12 months, or during a proportionate part of a taxable year of less than 12 months.
If we comply with all the requirements for ascertaining the ownership of our outstanding shares in a taxable year and have no reason
to know that we violated requirement 6, we will be deemed to have satisfied requirement 6 for such taxable year. For purposes of determining
share ownership under requirement 6, an &ldquo;individual&rdquo; generally includes a supplemental unemployment compensation benefits
plan, a private foundation, or a portion of a trust permanently set aside or used exclusively for charitable purposes. An &ldquo;individual,&rdquo;
however, generally does not include a trust that is a qualified employee pension or profit sharing trust under the U.S. federal income
tax laws, and beneficiaries of such a trust will be treated as holding shares of our stock in proportion to their actuarial interests
in the trust for purposes of requirement 6. Requirements 5 and 6 applied to us beginning with our taxable year ended December&nbsp;31,
2004.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We believe that we have
been and will continue to be organized and have operated in a manner that has allowed us, and will continue to allow us, to satisfy conditions
(1)&nbsp;through (10), inclusive, during the relevant time periods. We have issued sufficient stock with enough diversity of ownership
to satisfy requirements 5 and 6 set forth above. In addition, our Charter restricts the ownership and transfer of our stock so that we
should continue to satisfy requirements 5 and 6. The provisions of our Charter restricting the ownership and transfer of the stock are
described in &ldquo;Description of Our Capital Stock&#8201;&mdash;&#8201;Restrictions on Ownership and Transfer.&rdquo; These restrictions,
however, may not ensure that we will, in all cases, be able to satisfy such stock ownership requirements. If we fail to satisfy these
stock ownership requirements, our qualification as a REIT may terminate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">If we comply with regulatory
rules pursuant to which we are required to send annual letters to holders of our stock requesting information regarding the actual ownership
of our stock, and we do not know, or exercising reasonable diligence would not have known, whether we failed to meet requirement 6 above,
we will be treated as having met the requirement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In addition, we must satisfy
all relevant filing and other administrative requirements established by the IRS that must be met to elect and maintain REIT qualification.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Qualified REIT Subsidiaries</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">A corporation that is a
 &ldquo;qualified REIT subsidiary&rdquo; is not treated as a corporation separate from its parent REIT. All assets, liabilities, and items
of income, deduction, and credit of a &ldquo;qualified REIT subsidiary&rdquo; are treated as assets, liabilities, and items of income,
deduction, and credit of the REIT. A &ldquo;qualified REIT subsidiary&rdquo; is a corporation, other than a TRS, all of the capital stock
of which is owned by the REIT. Thus, in applying the requirements described in this section, any &ldquo;qualified REIT subsidiary&rdquo;
that we own will be ignored, and all assets, liabilities, and items of income, deduction, and credit of that subsidiary will be treated
as our assets, liabilities, and items of income, deduction, and credit. Similarly, any wholly-owned limited liability company or certain
wholly-owned partnerships that we own will be disregarded, and all assets, liabilities and items of income, deduction and credit of such
limited liability company will be treated as ours.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Other Disregarded Entities and
Partnerships</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">An unincorporated domestic
entity, such as a partnership or limited liability company that has a single owner, generally is not treated as an entity separate from
its parent for U.S. federal income tax purposes. An unincorporated domestic entity with two or more owners is generally treated as a
partnership for U.S. federal income tax purposes. In the case of a REIT that is a partner in a partnership that has other partners, the
REIT is treated as owning its proportionate share of the assets of the partnership and as earning its allocable share of the gross income
of the partnership for purposes of the applicable REIT qualification tests. For purposes of the 10% value test (as described below under
 &ldquo;&mdash; Asset Tests&rdquo;), our proportionate share is based on our proportionate interest in the equity interests and certain
debt securities issued by the partnership. For all of the other asset and income tests, our proportionate share is based on our proportionate
interest in the capital interests in the partnership. Our proportionate share of the assets, liabilities, and items of income of our
operating partnership and of any other partnership, joint venture, or limited liability company that is treated as a partnership for
U.S. federal income tax purposes in which we own or will acquire an interest, directly or indirectly (each, a &ldquo;Partnership&rdquo;
and, together, the &ldquo;Partnerships&rdquo;), are treated as our assets and gross income for purposes of applying the various REIT
qualification requirements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We may in the future acquire
interests in partnerships and limited liability companies that are joint ventures in which we do not own general partner or managing
member interests. If a partnership or limited liability company in which we own an interest takes or expects to take actions that could
jeopardize our qualification as a REIT or require us to pay tax, we may be forced to dispose of our interest in such entity. In addition,
it is possible that a partnership or limited liability company could take an action which could cause us to fail a REIT gross income
or asset test, and that we would not become aware of such action in time to dispose of our interest in the partnership or limited liability
company or take other corrective action on a timely basis. In that case, we could fail to qualify as a REIT unless we are able to qualify
for a statutory REIT &ldquo;savings&rdquo; provision, which may require us to pay a significant penalty tax to maintain our REIT qualification.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Taxable REIT Subsidiaries</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Subject to restrictions
on the value of TRS securities held by the REIT, a REIT is permitted to own up to 100% of the stock of one or more TRSs. A TRS is a fully
taxable corporation and is required to pay regular U.S. federal income tax, and state and local income tax where applicable, as a non-REIT
 &ldquo;C&rdquo; corporation. In addition, a taxable REIT subsidiary may be prevented from deducting interest on debt funded directly
or indirectly by us if certain tests are not satisfied, as described below in &ldquo;&mdash; Interest Deduction Limitation.&rdquo; The
TRS and the REIT must jointly elect to treat the subsidiary as a TRS. A corporation of which a TRS directly or indirectly owns more than
35% of the voting power or value of the stock will be automatically treated as a TRS. A TRS may not directly or indirectly operate or
manage any hotels or health care facilities or provide rights to any brand name under which any hotel or health care facility is operated
but is permitted to lease hotels from a related REIT as long as the hotels are operated on behalf of the TRS by an &ldquo;eligible independent
contractor.&rdquo; Overall, no more than 25% (20% with respect to taxable years beginning before July&nbsp;31, 2008 and after December&nbsp;31,
2017) of the value of a REIT&rsquo;s assets may consist of TRS securities. A timely election has been made with respect to each of our
TRSs. Each of our hotel properties is leased by one of our TRSs, except that one or more of our TRSs may own a hotel or hotels. Additionally,
we may form or acquire one or more additional TRSs in the future. See the separate section below entitled &ldquo;Taxable REIT Subsidiaries.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Income Tests</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We must satisfy two gross
income tests annually to maintain our qualification as a REIT. First, at least 75% of our gross income for each taxable year must consist
of defined types of income that we derive, directly or indirectly, from investments relating to real property or mortgages on real property
or qualified temporary investment income. Qualifying income for purposes of that 75% gross income test generally includes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">rents
                                            from real property;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                  </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">interest
                                            on debt secured by mortgages on real property or on interests in real property;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                                                 </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">dividends
                                            or other distributions on, and gain from the sale of, shares in other REITs;</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0"></P>

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<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">gain
                                            from the sale of real estate assets;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                  </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">income
                                            derived from the temporary investment of new capital or &ldquo;qualified temporary investment
                                            income,&rdquo; that is attributable to the issuance of our stock or a public offering of
                                            our debt with a maturity date of at least five years and that we receive during the one-year
                                            period beginning on the date on which we received such new capital; and</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">income
                                            and gain derived from foreclosure property, as defined below under &ldquo;&mdash; Foreclosure
                                            Property.&rdquo;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Second, in general, at least
95% of our gross income for each taxable year must consist of income that is qualifying income for purposes of the 75% gross income test,
other types of dividends and interest, gain from the sale or disposition of stock or securities, or any combination of these. Gross income
from our sale of any property that we hold primarily for sale to customers in the ordinary course of business and cancellation of indebtedness,
or COD, income is excluded from both income tests. Certain foreign currency gains will be excluded from gross income for purposes of
one or both of the gross income tests, as discussed below in &ldquo;&mdash; Foreign Currency Gain.&rdquo; In addition, income and gain
from &ldquo;hedging transactions,&rdquo; as defined in the section below entitled &ldquo;&mdash; Hedging Transactions,&rdquo; that we
enter into, or have entered into, will be excluded from both the numerator and the denominator for purposes of the 95% gross income test
and the 75% gross income test. Rules similar to those applicable to income from &ldquo;hedging transactions&rdquo; apply to income arising
from transactions that we enter into, or have entered into, primarily to manage risk of currency fluctuations with respect to any item
of income or gain included in the computation of the 95% income test or the 75% income test (or any property which generates such income
or gain). The following paragraphs discuss the specific application of the gross income tests to us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B><I>Rents from Real Property.
</I></B>Rent that we receive from real property that we own and lease to tenants will qualify as &ldquo;rents from real property,&rdquo;
which is qualifying income for purposes of the 75% and 95% gross income tests, only if the following conditions are met:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">First,
                                            the rent must not be based, in whole or in part, on the income or profits of any person but
                                            may be based on a fixed&nbsp;percentage or&nbsp;percentages of gross receipts or gross sales.</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                   </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Second,
                                            neither we nor a direct or indirect owner of 10% or more of our shares of stock may own,
                                            actually or constructively, 10% or more by vote or value of a tenant, other than a TRS, from
                                            whom we receive rent. If the tenant is a TRS either (i)&nbsp;at least 90% of the property
                                            is leased to unrelated tenants and the rent paid by the TRS is substantially comparable to
                                            the rent paid by the unrelated tenants for comparable space or (ii)&nbsp;the TRS leases a
                                            qualified lodging facility or qualified health care property and engages an &ldquo;eligible
                                            independent contractor&rdquo; to operate such facility or property on its behalf.</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                          </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Third,
                                            if the rent attributable to personal property leased in connection with a lease of real property
                                            exceeds 15% of the total rent received under the lease, then the portion of rent attributable
                                            to that personal property will not qualify as &ldquo;rents from real property.&rdquo; If
                                            rent attributable to personal property leased in connection with a lease of real property
                                            is 15% or less of the total rent received under the lease, then the rent attributable to
                                            personal property will qualify as rents from real property.</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                        </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Fourth,
                                            we generally must not operate or manage our real property or furnish or render services to
                                            our tenants, other than through an &ldquo;independent contractor&rdquo; who is adequately
                                            compensated, from whom we do not derive revenue, and who does not, directly or through its
                                            stockholders, own more than 35% of our shares of stock, taking into consideration the applicable
                                            ownership attribution rules. However, we need not provide services through an &ldquo;independent
                                            contractor,&rdquo; but instead may provide services directly to our tenants, if the services
                                            are &ldquo;usually or customarily rendered&rdquo; in the geographic area in connection with
                                            the rental of space for occupancy only and are not considered to be provided for the tenants&rsquo;
                                            convenience. In addition, we may provide a minimal amount of &ldquo;non-customary&rdquo;
                                            services to the tenants of a property, other than through an independent contractor, as long
                                            as our income from the services (valued at not less than 150% of our direct cost of performing
                                            such services) does not exceed 1% of our income from the related property. Furthermore, we
                                            may own up to 100% of the stock of a TRS which may provide customary and non-customary services
                                            to our tenants without tainting our rental income from the related properties. See &ldquo;&mdash;
                                            Taxable REIT Subsidiaries.&rdquo;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Pursuant to&nbsp;percentage
leases, our TRSs lease each of our properties (other than ones they may own). The&nbsp;percentage leases provide that our TRSs are obligated
to pay to the Partnerships (1)&nbsp;a minimum base rent plus&nbsp;percentage rent based on gross revenue and (2)&nbsp;&ldquo;additional
charges&rdquo; or other expenses, as defined in the leases. Percentage rent is calculated by multiplying fixed&nbsp;percentages by revenues
for each of the hotels. Both base rent and the thresholds in the&nbsp;percentage rent formulas may be adjusted for inflation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In order for the base rent,
percentage rent, and additional charges to constitute &ldquo;rents from real property,&rdquo; the&nbsp;percentage leases must be respected
as true leases for U.S. federal income tax purposes and not treated as service contracts, joint ventures, or some other type of arrangement.
The determination of whether the&nbsp;percentage leases are true leases depends on an analysis of all the surrounding facts and circumstances.
In making such a determination, courts have considered a variety of factors, including the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            property owner&rsquo;s expectation of receiving a pre-tax profit from the lease;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                                             </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            intent of the parties;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                   </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            form of the agreement;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                   </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            degree of control over the property that is retained by the property owner, or whether the
                                            lessee has substantial control over the operation of the property or is required simply to
                                            use its best efforts to perform its obligations under the agreement;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                        </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            extent to which the property owner retains the risk of loss with respect to the property,
                                            or whether the lessee bears the risk of increases in operating expenses or the risk of damage
                                            to the property or the potential for economic gain or appreciation with respect to the property;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                       </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            lessee will be obligated to pay, at a minimum, substantial base rent for the period of use
                                            of the properties under the lease; and</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                         </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            lessee will stand to incur substantial losses or reap substantial gains depending on how
                                            successfully it, through the property managers, who work for the lessees during the terms
                                            of the leases, operates the properties.</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                              </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In addition, U.S. federal
income tax law provides that a contract that purports to be a service contract or a partnership agreement will be treated instead as
a lease of property if the contract is properly treated as such, taking into account all relevant factors, including whether or not:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            service recipient is in physical possession of the property;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                         </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            service recipient controls the property;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                     </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            service recipient has a significant economic or possessory interest in the property, or whether
                                            the property&rsquo;s use is likely to be dedicated to the service recipient for a substantial
                                            portion of the useful life of the property, the recipient shares the risk that the property
                                            will decline in value, the recipient shares in any appreciation in the value of the property,
                                            the recipient shares in savings in the property&rsquo;s operating costs, or the recipient
                                            bears the risk of damage to or loss of the property;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                        </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            service provider bears the risk of substantially diminished receipts or substantially increased
                                            expenditures if there is nonperformance under the contract;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                        </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            service provider uses the property concurrently to provide significant services to entities
                                            unrelated to the service recipient; and</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                       </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            total contract price substantially exceeds the rental value of the property for the contract
                                            period.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Since the determination
of whether a service contract should be treated as a lease is inherently factual, the presence or absence of any single factor will not
be dispositive in every case.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We believe that our&nbsp;percentage
leases will be treated as true leases for U.S. federal income tax purposes. Such belief is based, in part, on the following facts:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            Partnerships, on the one hand, and our TRSs, on the other hand, intend for their relationship
                                            to be that of a lessor and lessee, and such relationship is documented by lease agreements;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                               </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our
                                            TRSs have the right to the exclusive possession, use, and quiet enjoyment of the hotels during
                                            the term of the&nbsp;percentage leases;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                             </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our
                                            TRSs bear the cost of, and are responsible for, day-to-day maintenance and repair of the
                                            hotels and generally dictate how the hotels are operated, maintained, and improved;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                  </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our
                                            TRSs bear all of the costs and expenses of operating the hotels, including the cost of any
                                            inventory used in their operation, during the term of the&nbsp;percentage leases, other than,
                                            in certain cases, real estate taxes;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                  </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our
                                            TRSs benefit from any savings in the costs of operating the hotels during the term of the&nbsp;percentage
                                            leases;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                 </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our
                                            TRSs generally indemnify the Partnerships against all liabilities imposed on the Partnerships
                                            during the term of the&nbsp;percentage leases by reason of (1)&nbsp;injury to persons or
                                            damage to property occurring at the hotels, (2)&nbsp;our TRSs&rsquo; use, management, maintenance,
                                            or repair of the hotels, (3)&nbsp;any environmental liability caused by acts or grossly negligent
                                            failures to act of our TRSs, (4)&nbsp;taxes and assessments in respect of the hotels that
                                            are the obligations of our TRSs, or (5)&nbsp;any breach of the&nbsp;percentage leases or
                                            of any sublease of a hotel by our TRSs;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                         </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our
                                            TRSs are obligated to pay, at a minimum, substantial base rent for the period of use of the
                                            hotels;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                                                                </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our
                                            TRSs stand to incur substantial losses or reap substantial gains depending on how successfully
                                            they operate the hotels;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                             </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            Partnerships cannot use the hotels concurrently to provide significant services to entities
                                            unrelated to our TRSs;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                      </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            total contract price under the&nbsp;percentage leases does not substantially exceed the rental
                                            value of the hotels for the term of the&nbsp;percentage leases;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                   </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">each
                                            lease, at the time we entered into it enabled the tenant to derive a meaningful profit, after
                                            expenses and taking into account the risks associated with the lease, from the operation
                                            of the hotels during the term of its leases (and we expect that each lease, at any time it
                                            is subsequently renewed or extended, will do the same); and</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                     </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">upon
                                            termination of each lease, the applicable hotel is expected to have a substantial remaining
                                            useful life and substantial remaining fair market value.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Investors should be aware
that there are no controlling Treasury regulations, published rulings, or judicial decisions involving leases with terms substantially
the same as the&nbsp;percentage leases that discuss whether such leases constitute true leases for U.S. federal income tax purposes.
If the&nbsp;percentage leases are characterized as service contracts or partnership agreements, rather than as true leases, part or all
of the payments that the Partnerships receive from our TRSs may not be considered rent or may not otherwise satisfy the various requirements
for qualification as &ldquo;rents from real property.&rdquo; In that case, we likely would not be able to satisfy either the 75% or 95%
gross income test and, as a result, would lose our REIT status. As described above, in order for the rent received by us to constitute
 &ldquo;rents from real property,&rdquo; several other requirements must be satisfied. One requirement is that the&nbsp;percentage rent
must not be based in whole or in part on the income or profits of any person. The&nbsp;percentage rent, however, will qualify as &ldquo;rents
from real property&rdquo; if it is based on&nbsp;percentages of gross receipts or gross sales and the&nbsp;percentages:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">are
                                            fixed at the time the&nbsp;percentage leases are entered into;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                           </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">are
                                            not renegotiated during the term of the&nbsp;percentage leases in a manner that has the effect
                                            of basing&nbsp;percentage rent on income or profits; and</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                               </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">conform
                                            with normal business practice.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">More generally, the&nbsp;percentage
rent will not qualify as &ldquo;rents from real property&rdquo; if, considering the&nbsp;percentage leases and all the surrounding circumstances,
the arrangement does not conform with normal business practice, but is in reality used as a means of basing the&nbsp;percentage rent
on income or profits. Since the&nbsp;percentage rent is based on fixed&nbsp;percentages of the gross revenues from the hotels that are
established in the&nbsp;percentage leases, and we believe that the&nbsp;percentages (1)&nbsp;will not be renegotiated during the terms
of the&nbsp;percentage leases in a manner that has the effect of basing the&nbsp;percentage rent on income or profits and (2)&nbsp;conform
with normal business practice, the&nbsp;percentage rent should not be considered based in whole or in part on the income or profits of
any person. Furthermore, we anticipate that, with respect to other hotel properties that we acquire in the future, we will not charge
rent for any property that is based in whole or in part on the income or profits of any person, except by reason of being based on a
fixed&nbsp;percentage of gross receipts or gross sales, as described above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Another requirement for
qualification of our rent as &ldquo;rents from real property&rdquo; is that we must not own, actually or constructively, 10% or more
by vote or value of the stock of any corporate lessee or 10% or more by vote or value of the assets or net profits of any non-corporate
lessee (a &ldquo;related party tenant&rdquo;) other than a TRS. All of our hotels are leased to TRSs (other than those owned by a TRS).
In addition, our Charter prohibits transfers of our stock that would cause us to own actually or constructively, 10% or more by vote
or value of the ownership interests in any non-TRS lessee. Based on the foregoing, we should never own, actually or constructively, 10%
or more by vote or value of any lessee other than a TRS. However, because the constructive ownership rules are broad and it is not possible
to monitor continually direct and indirect transfers of our stock, no absolute assurance can be given that such transfers or other events
of which we have no knowledge will not cause us to own constructively 10% or more by vote or value of a lessee (or a subtenant, in which
case only rent attributable to the subtenant is disqualified) other than a TRS at some future date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">As described above, we may
own up to 100% of the capital stock of one or more TRSs. A TRS is a fully taxable corporation that generally may engage in any business,
including the provision of customary or non-customary services to tenants of its parent REIT, except that a TRS may not directly or indirectly
operate or manage any lodging facilities or health care facilities or provide rights to any brand name under which any lodging or health
care facility is operated, unless such rights are provided to an &ldquo;eligible independent contractor&rdquo; to operate or manage a
lodging or health care facility if such rights are held by the TRS as a franchisee, licensee, or in a similar capacity and such hotel
is either owned by the TRS or leased to the TRS by its parent REIT. A TRS will not be considered to operate or manage a qualified lodging
facility solely because the TRS directly or indirectly possesses a license, permit, or similar instrument enabling it to do so.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Additionally, a TRS that
employs individuals working at a qualified lodging facility outside the United States will not be considered to operate or manage a qualified
lodging facility located outside of the United States, as long as an &ldquo;eligible independent contractor&rdquo; is responsible for
the daily supervision and direction of such individuals on behalf of the TRS pursuant to a management agreement or similar service contract.
However, rent that we receive from a TRS with respect to any property will qualify as &ldquo;rents from real property&rdquo; as long
as the property is a &ldquo;qualified lodging facility&rdquo; and such property is operated on behalf of the TRS by a person from whom
we derive no income who is adequately compensated, who does not, directly or through its stockholders, own more than 35% of our shares,
taking into account certain ownership attribution rules, and who is, or is related to a person who is, actively engaged in the trade
or business of operating &ldquo;qualified lodging facilities&rdquo; for any person unrelated to us and the TRS lessee (an &ldquo;eligible
independent contractor&rdquo;). A &ldquo;qualified lodging facility&rdquo; is a hotel, motel, or other establishment more than one-half
of the dwelling&nbsp;units in which are used on a transient basis, unless wagering activities are conducted at or in connection with
such facility by any person who is engaged in the business of accepting wagers and who is legally authorized to engage in such business
at or in connection with such facility. A &ldquo;qualified lodging facility&rdquo; includes customary amenities and facilities operated
as part of, or associated with, the lodging facility as long as such amenities and facilities are customary for other properties of a
comparable size and class owned by other unrelated owners. See &ldquo;&mdash; Taxable REIT Subsidiaries.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our TRS lessees engage third-party
hotel managers that qualify as &ldquo;eligible independent contractors&rdquo; to operate the related hotels on behalf of such TRS lessees.</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">A third requirement for
qualification of our rent as &ldquo;rents from real property&rdquo; is that the rent attributable to the personal property leased in
connection with the lease of a hotel must not be greater than 15% of the total rent received under the lease. The rent attributable to
the personal property contained in a hotel is the amount that bears the same ratio to total rent for the taxable year as the average
of the fair market values of the personal property at the beginning and at the end of the taxable year bears to the average of the aggregate
fair market values of both the real and personal property contained in the hotel at the beginning and at the end of such taxable year
(the &ldquo;personal property ratio&rdquo;). With respect to each hotel, we believe either that the personal property ratio is less than
15% or that any income attributable to excess personal property will not jeopardize our ability to qualify as a REIT. There can be no
assurance, however, that the IRS would not challenge our calculation of a personal property ratio or that a court would not uphold such
assertion. If such a challenge were successfully asserted, we could fail to satisfy the 95% or 75% gross income test and thus lose our
REIT status.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">A fourth requirement for
qualification of our rent as &ldquo;rents from real property&rdquo; is that, other than within the 1% <I>de minimis</I> exception described
above (<I>i.e.</I>, we may provide a minimal amount of &ldquo;non-customary&rdquo; services to the tenants of a property, other than
through a TRS or an independent contractor, as long as our income from the services does not exceed 1% of our income from the related
property) and other than through a TRS, we cannot furnish or render noncustomary services to the tenants of our hotels, or manage or
operate our hotels, other than through an independent contractor who is adequately compensated and from whom we do not derive or receive
any income. Provided that the&nbsp;percentage leases are respected as true leases, we should satisfy that requirement, because the Partnerships
will not perform any services other than customary services for our TRSs. Furthermore, we have represented that, with respect to other
hotel properties that we acquire in the future, we will not perform noncustomary services for our TRSs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">If a portion of our rent
from a hotel does not qualify as &ldquo;rents from real property&rdquo; because the rent attributable to personal property exceeds 15%
of the total rent for a taxable year, the portion of the rent that is attributable to personal property will not be qualifying income
for purposes of either the 75% or 95% gross income test. Thus, if such rent attributable to personal property, plus any other income
that is nonqualifying income for purposes of the 95% gross income test, during a taxable year exceeds 5% of our gross income during the
year, we would lose our REIT status. If, however, the rent from a particular hotel does not qualify as &ldquo;rents from real property&rdquo;
because either (1)&nbsp;the&nbsp;percentage rent is considered based on the income or profits of the related lessee, (2)&nbsp;the lessee
is a related party tenant other than a TRS, or (3)&nbsp;we furnish noncustomary services to the tenants of the hotel, or manage or operate
the hotel, other than through a qualifying independent contractor or a TRS, none of the rent from that hotel would qualify as &ldquo;rents
from real property.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In that case, we likely
would be unable to satisfy either the 75% or 95% gross income test and, as a result, would lose our REIT status. However, in either situation,
we may still qualify as a REIT if the relief described below under &ldquo;&mdash; Failure to Satisfy Gross Income Tests&rdquo; is available
to us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In addition to the rent,
our TRSs are required to pay to the Partnerships certain additional charges. To the extent that such additional charges represent either
(1)&nbsp;reimbursements of amounts that the Partnerships are obligated to pay to third parties or (2)&nbsp;penalties for nonpayment or
late payment of such amounts, such charges should qualify as &ldquo;rents from real property.&rdquo; However, to the extent that such
charges represent interest that is accrued on the late payment of the rent or additional charges, such charges will not qualify as &ldquo;rents
from real property,&rdquo; but instead should be treated as interest that qualifies for the 95% gross income test.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B><I>Interest.</I></B>&nbsp;&nbsp;&nbsp;The
term &ldquo;interest,&rdquo; as defined for purposes of both the 75% and 95% gross income tests, generally does not include any amount
received or accrued, directly or indirectly, if the determination of such amount depends in whole or in part on the income or profits
of any person. However, interest generally includes the following: (i)&nbsp;an amount that is based on a fixed&nbsp;percentage or&nbsp;percentages
of receipts or sales, and (ii)&nbsp;an amount that is based on the income or profits of a debtor, as long as the debtor derives substantially
all of its income from the real property securing the debt from leasing substantially all of its interest in the property, and only to
the extent that the amounts received by the debtor would be qualifying &ldquo;rents from real property&rdquo; if received directly by
a REIT. Furthermore, to the extent that interest from a loan that is based on the residual cash proceeds from the sale of the property
securing the loan constitutes a &ldquo;shared appreciation provision,&rdquo; income attributable to such participation feature will be
treated as gain from the sale of the secured property.</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In Revenue Procedure 2003-65,
the IRS established a safe harbor under which interest from loans secured by a first priority security interest in ownership interests
in a partnership or limited liability company owning real property will be treated as qualifying income for both the 75% and 95% gross
income tests, provided several requirements are satisfied. Although the Revenue Procedure provides a safe harbor on which taxpayers may
rely, it does not prescribe rules of substantive tax law. Moreover, although we anticipate that most or all of any mezzanine loans that
we make or acquire will qualify for the safe harbor in Revenue Procedure 2003-65, it is possible that we may make or acquire some mezzanine
loans that do not qualify for the safe harbor. We intend to invest in such mezzanine loans in a manner that will allow us to satisfy
the gross income tests described above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B><I>Dividends.</I></B>&nbsp;&nbsp;&nbsp;Our
share of any dividends received from any corporation (including any TRS, but excluding any REIT) in which we own an equity interest will
qualify for purposes of the 95% gross income test but not for purposes of the 75% gross income test. Our share of any dividends or other
distributions received from any other REIT in which we own an equity interest will be qualifying income for purposes of both gross income
tests.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B><I>COD Income.</I></B>&nbsp;&nbsp;&nbsp;From
time-to-time, we and our subsidiaries may recognize cancellation of indebtedness income (&ldquo;COD income&rdquo;) in connection with
repurchasing debt at a discount. COD income is excluded from gross income for purposes of both the 95% gross income test and the 75%
gross income test.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B><I>Foreign Currency Gain.</I></B>&nbsp;&nbsp;&nbsp;Certain
foreign currency gains will be excluded from gross income for purposes of one or both of the gross income tests. &ldquo;Real estate foreign
exchange gain&rdquo; is excluded from gross income for purposes of the 75% gross income test. Real estate foreign exchange gain generally
includes foreign currency gain attributable to any item of income or gain that is qualifying income for purposes of the 75% gross income
test, foreign currency gain attributable to the acquisition or ownership of (or becoming or being the obligor under) obligations secured
by mortgages on real property or on interest in real property and certain foreign currency gain attributable to certain &ldquo;qualified
business&nbsp;units&rdquo; of a REIT. &ldquo;Passive foreign exchange gain&rdquo; is excluded from gross income for purposes of the 95%
gross income test. Passive foreign exchange gain generally includes real estate foreign exchange gain as described above, and also includes
foreign currency gain attributable to any item of income or gain that is qualifying income for purposes of the 95% gross income test
and foreign currency gain attributable to the acquisition or ownership of (or becoming or being the obligor under) obligations. Because
passive foreign exchange gain includes real estate foreign exchange gain, real estate foreign exchange gain is excluded from gross income
for purposes of both the 75% and 95% gross income tests. These exclusions for real estate foreign exchange gain and passive foreign exchange
gain do not apply to foreign currency gain derived from dealing, or engaging in substantial and regular trading, in securities. Such
gain is treated as nonqualifying income for purposes of both the 75% and 95% gross income tests.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B><I>Prohibited Transactions.</I></B>&nbsp;&nbsp;&nbsp;A
REIT will incur a 100% tax on the net income (including foreign currency gain) derived from any sale or other disposition of property,
other than foreclosure property, that the REIT holds primarily for sale to customers in the ordinary course of a trade or business. Whether
a REIT holds an asset &ldquo;primarily for sale to customers in the ordinary course of a trade or business&rdquo; depends on the facts
and circumstances in effect from time to time, including those related to a particular asset. We believe that none of the assets owned
by the Partnerships is held primarily for sale to customers and that a sale of any such asset would not be to a customer in the ordinary
course of the owning entity&rsquo;s business. There are safe-harbor provisions in the U.S. federal income tax laws prescribing when an
asset sale will not be characterized as a prohibited transaction. We cannot provide assurance, however, that we can comply with such
safe-harbor provisions or that the Partnerships will avoid owning property that may be characterized as property held &ldquo;primarily
for sale to customers in the ordinary course of a trade or business.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B><I>Foreclosure Property.</I></B>&nbsp;&nbsp;&nbsp;We
will be subject to tax at the maximum corporate rate on any income (including foreign currency gain) from foreclosure property, other
than income that would be qualifying income for purposes of the 75% gross income test, less expenses directly connected with the production
of such income. However, gross income from such foreclosure property will qualify for purposes of the 75% and 95% gross income tests.
 &ldquo;Foreclosure property&rdquo; is any real property, including interests in real property, and any personal property incident to
such real property:</P>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">that
                                            is acquired by a REIT as the result of such REIT having bid on such property at foreclosure,
                                            or having otherwise reduced such property to ownership or possession by agreement or process
                                            of law, after there was a default or default was imminent on a lease of such property or
                                            on an indebtedness that such property secured;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                       </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">for
                                            which the related loan or lease was acquired by the REIT at a time when the REIT had no intent
                                            to evict or foreclose or the REIT did not know or have reason to know that default would
                                            occur; and</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                          </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">for
                                            which such REIT makes a proper election to treat such property as foreclosure property.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">However, a REIT will not
be considered to have foreclosed on a property where the REIT takes control of the property as a mortgagee-in-possession and cannot receive
any profit or sustain any loss except as a creditor of the mortgagor. Property generally ceases to be foreclosure property with respect
to a REIT at the end of the third taxable year following the taxable year in which the REIT acquired such property, or longer if an extension
is granted by the Secretary of the Treasury. The foregoing grace period is terminated and foreclosure property ceases to be foreclosure
property on the first day:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">on
                                            which a lease is entered into with respect to such property that, by its terms, will give
                                            rise to income that does not qualify for purposes of the 75% gross income test or any amount
                                            is received or accrued, directly or indirectly, pursuant to a lease entered into on or after
                                            such day that will give rise to income that does not qualify for purposes of the 75% gross
                                            income test;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
               </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">on
                                            which any construction takes place on such property, other than completion of a building,
                                            or any other improvement, where more than 10% of the construction of such building or other
                                            improvement was completed before default became imminent; or</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
            </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">which
                                            is more than 90&nbsp;days after the day on which such property was acquired by the REIT and
                                            the property is used in a trade or business which is conducted by the REIT, other than through
                                            an independent contractor from whom the REIT itself does not derive or receive any income
                                            or, for taxable years beginning after December&nbsp;31, 2015, through a TRS.</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                   </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">As a result of the rules
with respect to foreclosure property, if a lessee defaults on its obligations under a&nbsp;percentage lease, we terminate the lessee&rsquo;s
leasehold interest, and we are unable to find a replacement lessee for the hotel within 90&nbsp;days of such foreclosure, gross income
from hotel operations conducted by us from such hotel would cease to qualify for the 75% and 95% gross income tests unless we are able
to hire an independent contractor or, for taxable years beginning after December&nbsp;31, 2015, use a TRS to manage and operate the hotel.
In such event, we might be unable to satisfy the 75% and 95% gross income tests and, thus, might fail to qualify as a REIT.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B><I>Hedging Transactions.</I></B>&nbsp;&nbsp;&nbsp;From
time to time, we may enter into hedging transactions with respect to one or more of our assets or liabilities. Our hedging activities
may include entering into interest rate swaps, caps, floors, options to purchase such items, futures and forward contracts. To the extent
that we enter into hedging transactions, income arising from &ldquo;clearly identified&rdquo; hedging transactions that are entered into
by the REIT in the normal course of business, either directly or through certain subsidiary entities, to manage the risk of interest
rate movements, price changes, or currency fluctuations with respect to borrowings or obligations incurred or to be incurred by the REIT
to acquire or carry real estate assets is excluded from the 95% income test and the 75% income test. In general, for a hedging transaction
to be &ldquo;clearly identified,&rdquo; (A)&nbsp;the transaction must be identified as a hedging transaction before the end of the day
on which it is entered into, and (B)&nbsp;the items or risks being hedged must be identified &ldquo;substantially contemporaneously&rdquo;
with the hedging transaction, meaning that the identification of the items or risks being hedged must generally occur within 35&nbsp;days
after the date the transaction is entered into. Rules similar to those applicable to income from hedging transactions, discussed above,
apply to income arising from transactions that are entered into by the REIT primarily to manage risk of currency fluctuations with respect
to any item of income or gain included in the computation of the 95% income test or the 75% income test (or any property which generates
such income or gain). In addition, for taxable years ending after December&nbsp;31, 2015, similar rules apply to income from positions
that primarily manage risk with respect to a prior hedge entered into by a REIT in connection with the extinguishment or disposal (in
whole or in part) of the liability or asset related to such prior hedge, to the extent the new position qualifies as a hedge or would
so qualify if the hedge position were ordinary property. We intend to structure any hedging transactions in a manner that does not jeopardize
our status as a REIT. The REIT income and asset rules may limit our ability to hedge loans or securities acquired as investments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We have entered into certain
derivative transactions to protect against risks not specifically associated with debt incurred to acquire qualified REIT assets. The
REIT provisions of the Code limit our income and assets in each year from such derivative transactions. Failure to comply with the asset
or income limitations within the REIT provisions of the Code could result in penalty taxes or loss of our REIT status. We have contributed
non-qualifying derivatives to our TRSs to preserve our REIT status, which may result in any income from such transactions being subject
to U.S. federal income taxation, and we may elect to contribute non-qualifying derivatives to our TRSs in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B><I>Failure to Satisfy
Gross Income Tests.</I></B>&nbsp;&nbsp;&nbsp;If we fail to satisfy one or both of the gross income tests for any taxable year, we nevertheless
may qualify as a REIT for such year if we qualify for relief under certain provisions of the U.S. federal income tax laws. Those relief
provisions generally will be available if:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our
                                            failure to meet such tests is due to reasonable cause and not due to willful neglect; and</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                                                      </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">following
                                            our identification of the failure to meet one or both gross income tests for a taxable year,
                                            a description of each item of our gross income included in the 75% or 95% gross income tests
                                            is set forth in a schedule for such taxable year filed as specified by Treasury regulations.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We cannot predict, however,
whether in all circumstances we would qualify for the relief provisions. In addition, as discussed above in &ldquo;&mdash; Taxation of
Our Company,&rdquo; even if the relief provisions apply, we would incur a 100% tax on the gross income attributable to the greater of
the amounts by which we fail the 75% and 95% gross income tests, multiplied by a fraction intended to reflect our profitability.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Asset Tests</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">To maintain our qualification
as a REIT, we also must satisfy the following asset tests at the close of each quarter of each taxable year:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">First,
                                            at least 75% of the value of our total assets must consist of:</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                              </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">cash
                                            or cash items, including certain receivables;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                          </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">government
                                            securities;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                              </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">interests
                                            in real property, including leaseholds and options to acquire real property and leaseholds;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                                                             </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">interests
                                            in mortgages on real property or, for taxable years beginning after December&nbsp;31, 2015,
                                            on interests in real property;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                        </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">for
                                            taxable years beginning after December&nbsp;31, 2015, interests in mortgages on both real
                                            and personal property where the fair market value of such personal property does not exceed
                                            15% of the total fair market value of all such property;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                 </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">for
                                            taxable years beginning after December&nbsp;31, 2015, personal property to the extent that
                                            rents attributable to such personal property are treated as rents from real property under
                                            the income test, as discussed above under &ldquo;&mdash; Rents From Real Property&rdquo;;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                    </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">stock
                                            in other REITs;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                             </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">for
                                            taxable years beginning after December&nbsp;31, 2015, debt issued by publicly traded REITs;
                                            and</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                                                           </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">investments
                                            in stock or debt instruments during the one-year period following our receipt of new capital
                                            that we raise through equity offerings or offerings of debt with at least a five-year term.</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                     </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Second,
                                            except with respect to a TRS, of our investments not included in the 75% asset class, the
                                            value of our interest in any one issuer&rsquo;s securities may not exceed 5% of the value
                                            of our total assets.</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                  </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Third,
                                            except with respect to a TRS, of our investments not included in the 75% asset class, we
                                            may not own more than 10% of the voting power or value of any one issuer&rsquo;s outstanding
                                            securities, or the 10% vote test or the 10% value test, respectively.</TD></TR></TABLE>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0"></P>

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<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Fourth,
                                            no more than 25% (20% with respect to taxable years beginning before July&nbsp;31, 2008 and
                                            after December&nbsp;31, 2017) of the value of our total assets may consist of the securities
                                            of one or more TRSs.</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                     </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Fifth,
                                            no more than 25% of the value of our total assets may consist of certain debt issued by publicly
                                            traded REITs.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">For purposes of the second
and third asset tests, the term &ldquo;securities&rdquo; does not include stock in another REIT, equity or debt securities of a qualified
REIT subsidiary or TRS, or equity interests in a partnership.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">For purposes of the 10%
value test, the term &ldquo;securities&rdquo; does not include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">&ldquo;Straight
                                            debt&rdquo; securities, which is defined as a written unconditional promise to pay on demand
                                            or on a specified date a sum certain in money if (i)&nbsp;the debt is not convertible, directly
                                            or indirectly, into stock, and (ii)&nbsp;the interest rate and interest payment dates are
                                            not contingent on profits, the borrower&rsquo;s discretion, or similar factors. &ldquo;Straight
                                            debt&rdquo; securities do not include any securities issued by a partnership or a corporation
                                            in which we or any controlled TRS (<I>i.e.</I>, a TRS in which we own directly or indirectly
                                            more than 50% of the voting power or value of the stock) hold non-&rdquo;straight debt&rdquo;
                                            securities that have an aggregate value of more than 1% of the issuer&rsquo;s outstanding
                                            securities. However, &ldquo;straight debt&rdquo; securities include debt subject to the following
                                            contingencies:</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                     </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">a
                                            contingency relating to the time of payment of interest or principal, as long as either (i)&nbsp;there
                                            is no change to the effective yield of the debt obligation, other than a change to the annual
                                            yield that does not exceed the greater of 0.25% or 5% of the annual yield, or (ii)&nbsp;neither
                                            the aggregate issue price nor the aggregate face amount of the issuer&rsquo;s debt obligations
                                            held by us exceeds $1&nbsp;million and no more than 12 months of unaccrued interest on the
                                            debt obligations can be required to be prepaid; and</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                            </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">a
                                            contingency relating to the time or amount of payment upon a default or prepayment of a debt
                                            obligation, as long as the contingency is consistent with customary commercial practice.</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                      </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Any
                                            loan to an individual or an estate.</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Any
                                            &ldquo;section 467 rental agreement,&rdquo; other than an agreement with a related party
                                            tenant.</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                                                             </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Any
                                            obligation to pay &ldquo;rents from real property.&rdquo;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                      </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Certain
                                            securities issued by governmental entities.</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                            </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Any
                                            security issued by a REIT.</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                       </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Any
                                            debt instrument of an entity treated as a partnership for U.S. federal income tax purposes
                                            to the extent of our interest as a partner in the partnership.</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                 </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Any
                                            debt instrument of an entity treated as a partnership for U.S. federal income tax purposes
                                            not described in the preceding bullet points if at least 75% of the partnership&rsquo;s gross
                                            income, excluding income from prohibited transactions, is qualifying income for purposes
                                            of the 75% gross income test described above in &ldquo;&mdash; Income Tests.&rdquo;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">For purposes of the 10%
value test, our proportionate share of the assets of a partnership is our proportionate interest in any securities issued by the partnership,
without regard to the securities described in the last two bullet points above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We may make or acquire some
mezzanine loans that are secured only by a first priority security interest in ownership interests in a partnership or limited liability
company and that do not qualify for the safe harbor in Revenue Procedure 2003-65 relating to the 75% asset test and that do not qualify
as &ldquo;straight debt&rdquo; for purposes of the 10% value test. We will make or acquire mezzanine loans that do not qualify for the
safe harbor in Revenue Procedure 2003-65 or as &ldquo;straight debt&rdquo; securities only to the extent that such loans will not cause
us to fail the asset tests described above.</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We will monitor the status
of our assets for purposes of the various asset tests and seek to manage our assets to comply at all times with such tests. There can
be no assurances, however, that we will be successful in this effort. In this regard, to determine our compliance with these requirements,
we need to estimate the value of the real estate securing our mortgage loans at various times. In addition, we have to value our investment
in our other assets to ensure compliance with the asset tests. Although we seek to be prudent in making these estimates, there can be
no assurances that the IRS might not disagree with these determinations and assert that a different value is applicable, in which case
we might not satisfy the 75% and the other asset tests and would fail to qualify as a REIT. If we fail to satisfy the asset tests at
the end of a calendar quarter, we will not lose our REIT qualification if:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">we
                                            satisfied the asset tests at the end of the preceding calendar quarter; and</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                                       </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            discrepancy between the value of our assets and the asset test requirements arose from changes
                                            in the market values of our assets and was not wholly or partly caused by the acquisition
                                            of one or more non-qualifying assets.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">If we did not satisfy the
condition described in the second item, above, we still could avoid disqualification by eliminating any discrepancy within 30&nbsp;days
after the close of the calendar quarter in which it arose.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">If we violate the second
or third asset tests described above at the end of any calendar quarter, we will not lose our REIT qualification if (i)&nbsp;the failure
is <I>de minimis</I> (up to the lesser of 1% of our assets or $10&nbsp;million) and (ii)&nbsp;we dispose of assets or otherwise comply
with the asset tests within six months after the last day of the quarter in which we identified such failure. In the event of a more
than <I>de minimis</I> failure of any of the asset tests, as long as the failure was due to reasonable cause and not to willful neglect,
we will not lose our REIT qualification if we (i)&nbsp;dispose of assets or otherwise comply with the asset tests within six months after
the last day of the quarter in which we identified such failure, (ii)&nbsp;file a schedule with the IRS describing the assets that caused
such failure in accordance with regulations promulgated by the Secretary of Treasury and (iii)&nbsp;pay a tax equal to the greater of
$50,000 or the highest rate of federal corporate income tax of the net income from the nonqualifying assets during the period in which
we failed to satisfy the asset tests.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Distribution Requirements</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Each taxable year, we must
distribute dividends, other than capital gain dividends and deemed distributions of retained capital gain, to our stockholders in an
aggregate amount at least equal to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            sum of (1)&nbsp;90% of our &ldquo;REIT taxable income,&rdquo; computed without regard to
                                            the dividends paid deduction and our net capital gain, and (2)&nbsp;90% of our after-tax
                                            net income, if any, from foreclosure property; minus</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                         </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            sum of certain items of non-cash income.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In addition, our REIT taxable
income will be reduced by any taxes we are required to pay on any gain we recognize from the disposition of any asset we acquired from
a corporation that is or has been a C&nbsp;corporation in a transaction in which our tax basis in the asset is less than the fair market
value of the asset, in each case determined as of the date on which we acquired the asset, within the five-year period following our
acquisition of such asset, as described above under &ldquo;&mdash; Taxation of Our Company&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We must pay such distributions
in the taxable year to which they relate, or in the following taxable year if we declare the distribution before we timely file our U.S.
federal income tax return for such year and pay the distribution on or before the first regular dividend payment date after such declaration.
Any dividends declared in the last three months of the taxable year, payable to stockholders of record on a specified date during such
period, will be treated as paid on December&nbsp;31 of such year if such dividends are distributed during January of the following year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We will pay U.S. federal
income tax on taxable income, including net capital gain, that we do not distribute to our stockholders. Furthermore, if we fail to distribute
during a calendar year, or by the end of January following such calendar year in the case of distributions with declaration and record
dates falling in the last three months of the calendar year, at least the sum of:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">85%
                                            of our REIT ordinary income for such year;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                       </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">95%
                                            of our REIT capital gain income for such year; and</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                               </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">any
                                            undistributed taxable income from prior periods,</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">we will incur a 4% nondeductible excise tax on
the excess of such required distribution over the amounts we actually distributed. We may elect to retain and pay income tax on the net
long-term capital gain we receive in a taxable year. See &ldquo;&mdash; Taxation of Taxable U.S. Holders of Common Stock&#8201;&mdash;&#8201;Distributions.&rdquo;
If we so elect, we will be treated as having distributed any such retained amount for purposes of the 4% excise tax described above.
We intend to make timely distributions sufficient to satisfy the annual distribution requirements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">It is possible that, from
time to time, we may experience timing differences between (1)&nbsp;the actual receipt of income and actual payment of deductible expenses,
and (2)&nbsp;the inclusion of that income and deduction of such expenses in arriving at our REIT taxable income. For example, under some
of the&nbsp;percentage leases, the&nbsp;percentage rent is not due until after the end of the calendar quarter. In that case, we still
would be required to recognize as income the excess of the&nbsp;percentage rent over the base rent paid by the lessee in the calendar
quarter to which such excess relates. In addition, we may not deduct recognized net capital losses from our &ldquo;REIT taxable income.&rdquo;
Further, it is possible that, from time to time, we may be allocated a share of gain attributable to the sale of depreciated property
that exceeds our allocable share of cash attributable to that sale. Furthermore, generally for taxable years beginning after December&nbsp;31,
2017, subject to certain exceptions, generally we must accrue income for U.S. federal income tax purposes no later than the time when
such income is taken into account as revenue in our financial statements, which could create additional differences between REIT taxable
income and the receipt of cash attributable to such income. As a result of the foregoing, we may have less cash than is necessary to
distribute all of our taxable income and thereby avoid corporate income tax and the excise tax imposed on certain undistributed income.
In such a situation, we may need to borrow funds or issue additional common or preferred shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We may satisfy the REIT
annual distribution requirements by making taxable distributions of our stock. In accordance with guidance issued by the IRS, a publicly
traded REIT should generally be eligible to treat a distribution of its own stock as fulfilling its REIT distribution requirements if
each stockholder is permitted to elect to receive his or her distribution in either cash or stock of the REIT (even where there is a
limitation on the&nbsp;percentage of the distribution payable in cash, provided that the limitation is at least 20% (10% for distributions
declared on or after April&nbsp;1, 2020, and on or before December&nbsp;31, 2020)), subject to the satisfaction of certain guidelines.
If too many stockholders elect to receive cash, each stockholder electing to receive cash generally must receive a portion of his or
her distribution in cash (with the balance of the distribution paid in stock). If these and certain other requirements are met, for U.S.
federal income tax purposes, the amount of the distribution paid in stock generally will be a taxable distribution in an amount equal
to the amount of cash that could have been received instead of stock. As a result, a U.S. holder (as defined below) may be required to
pay tax with respect to such dividends in excess of any cash received. With respect to non-U.S. holders (as defined below), we may be
required to withhold U.S. tax with respect to such dividends, including in respect of all or a portion of such dividend that is payable
in stock. We currently do not intend to pay taxable dividends payable in cash and stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">For taxable years beginning
on or before December&nbsp;31, 2014, in order for distributions to be counted towards our distribution requirement and to give rise to
a tax deduction by us, they must not be &ldquo;preferential dividends.&rdquo; A dividend is not a preferential dividend if it is pro&nbsp;rata
among all outstanding shares of stock within a particular class and is in accordance with the preferences among different classes of
stock as set forth in the organizational documents. For taxable years beginning after December&nbsp;31, 2014, preferential dividends
are generally not excluded from our distribution requirement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Under certain circumstances,
we may be able to correct a failure to meet the distribution requirement for a year by paying &ldquo;deficiency dividends&rdquo; to our
stockholders in a later year. We may include such deficiency dividends in our deduction for dividends paid for the earlier year. Although
we may be able to avoid income tax on amounts distributed as deficiency dividends, we will be required to pay interest to the IRS based
upon the amount of any deduction we take for deficiency dividends.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Interest Deduction Limitation</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Commencing in the taxable
years beginning after December&nbsp;31, 2017, the deductibility of net interest expense paid or accrued on debt properly allocable to
a trade or business is limited to 30% of &ldquo;adjusted taxable income,&rdquo; subject to certain exceptions. Any deduction in excess
of the limitation is carried forward and may be used in a subsequent year, subject to the 30% limitation. However, for any taxable year
beginning in 2019 or 2020, the 30% limitation has been increased to a 50% limitation, provided that for partnerships the 50% limitation
applies for any taxable year beginning in 2020 only. Taxpayers may elect to use their 2019 adjusted taxable income for purposes of computing
their 2020 limitation. Adjusted taxable income is determined without regard to certain deductions, including those for net interest expense,
net operating loss carryforward and, for taxable years beginning before January&nbsp;1, 2022, depreciation, amortization and depletion.
Provided the taxpayer makes a timely election (which is irrevocable), the limitation does not apply to a trade or business involving
real property development, redevelopment, construction, reconstruction, rental, operation, acquisition, conversion, disposition, management,
leasing or brokerage, within the meaning of Section&nbsp;469(c)(7)(C) of the Code. We have made this election and as a consequence, depreciable
real property (including certain improvements) held by us must be depreciated under the alternative depreciation system under the Code,
which is generally less favorable than the generally applicable system of depreciation under the Code. If the election is determined
not to be available with respect to all or certain of our business activities, the new interest deduction limitation could result in
us having more REIT taxable income and thus increase the amount of distributions we must make to comply with the REIT requirements and
avoid incurring corporate level tax. Similarly, the limitation could cause our TRSs to have greater taxable income and thus potentially
greater corporate tax liability.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in"></P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Recordkeeping Requirements</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">To avoid a monetary penalty,
we must request on an annual basis information from our stockholders designed to disclose the actual ownership of our outstanding shares
of stock. We intend to comply with such requirements.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Failure to Qualify</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">If we fail to satisfy one
or more requirements for REIT qualification, other than the gross income tests and the asset tests, we could avoid disqualification if
our failure is due to reasonable cause and not to willful neglect and we pay a penalty of $50,000 for each such failure. In addition,
there are relief provisions for a failure of the gross income tests and asset tests, as described in &ldquo;&mdash; Income Tests&rdquo;
and &ldquo;&mdash; Asset Tests.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">If we were to fail to qualify
as a REIT in any taxable year, and no relief provision applied, we would be subject to U.S. federal income tax on our taxable income
at regular corporate rates and any applicable alternative minimum tax. In calculating our taxable income in a year in which we failed
to qualify as a REIT, we would not be able to deduct amounts paid out to stockholders with respect to our stock. In fact, we would not
be required to distribute any amounts to stockholders in such year. In such event, to the extent of our current and accumulated earnings
and profits, all distributions to stockholders would be taxable as regular corporate dividends. Subject to certain limitations of the
U.S. federal income tax laws, corporate stockholders might be eligible for the dividends received deduction and individual and certain
non-corporate trust and estate stockholders may be eligible for a reduced maximum U.S. federal income tax rate of 20% on such dividends.
Unless we qualified for relief under specific statutory provisions, we also would be disqualified from taxation as a REIT for the four
taxable years following the year during which we ceased to qualify as a REIT. We cannot predict whether in all circumstances we would
qualify for such statutory relief.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Taxation of Taxable U.S. Holders</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The term &ldquo;U.S. holder&rdquo;
means a holder of our Common Stock that for U.S. federal income tax purposes is a &ldquo;U.S. person.&rdquo; A U.S. person means:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">a
                                            citizen or resident of the United States;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                    </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">a
                                            corporation (including an entity treated as a corporation for U.S. federal income tax purposes)
                                            created or organized in or under the laws of the United States, any of its states, or the
                                            District of Columbia;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                 </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">an
                                            estate whose income is subject to U.S. federal income taxation regardless of its source;
                                            or</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                                                       </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">any
                                            trust if (1)&nbsp;a U.S. court is able to exercise primary supervision over the administration
                                            of such trust and one or more U.S. persons have the authority to control all substantial
                                            decisions of the trust or (2)&nbsp;it has a valid election in place to be treated as a U.S.
                                            person.</TD></TR></TABLE>




<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in"></P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Taxation of Taxable U.S. Holders
of Common Stock</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B><I>Distributions.</I></B>&nbsp;&nbsp;&nbsp;As
long as we qualify as a REIT, (1)&nbsp;a taxable U.S. holder of our Common Stock must report as ordinary income distributions that are
made out of our current or accumulated earnings and profits and that we do not designate as capital gain dividends or retained long-term
capital gain, and (2)&nbsp;a corporate U.S. holder of our Common Stock will not qualify for the dividends received deduction generally
available to corporations. In addition, dividends paid to an individual U.S. holder generally will not qualify for the reduced rate of
U.S. federal income tax applicable to &ldquo;qualified dividend income.&rdquo; Qualified dividend income generally includes dividends
from most U.S. corporations but does not generally include REIT dividends. As a result, our ordinary REIT dividends generally will continue
to be taxed at the U.S. federal income tax rate applicable to ordinary income. However, for taxable years beginning before January&nbsp;1,
2026, generally U.S. holders that are individuals, trusts or estates may deduct 20% of the aggregate amount of ordinary dividends distributed
by us, subject to certain limitations. Notwithstanding the foregoing, the U.S. federal income tax rate for qualified dividend income
will apply to our ordinary REIT dividends, if any, that are (1)&nbsp;attributable to dividends received by us from non-REIT corporations,
such as our TRSs, and (2)&nbsp;attributable to income upon which we have paid corporate U.S. federal income tax (<I>e.g.</I>, to the
extent that we distribute less than 100% of our REIT taxable income). In general, to qualify for the reduced U.S. federal income tax
rate on qualified dividend income, a U.S. holder must hold our stock for more than 60&nbsp;days during the 121-day period beginning on
the date that is 60&nbsp;days before the date on which our stock becomes ex-dividend.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">A U.S. holder generally
will report distributions that we designate as capital gain dividends as long-term capital gain without regard to the period for which
the U.S. holder has held our stock. A corporate U.S. holder, however, may be required to treat up to 20% of certain capital gain dividends
as ordinary income.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We may elect to retain and
pay U.S. federal income tax on the net long-term capital gain that we receive in a taxable year. In that case, a U.S. holder would be
taxed on its proportionate share of our undistributed long-term capital gain, to the extent that we designate such amount in a timely
notice to such holder. The U.S. holder would be entitled to a credit or refund for its proportionate share of the U.S. federal income
tax we paid. The U.S. holder would increase the basis in its stock by the amount of its proportionate share of our undistributed long-term
capital gain, minus its share of the U.S. federal income tax we paid.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">To the extent that we make
a distribution in excess of our current and accumulated earnings and profits, such distribution will not be taxable to a U.S. holder
to the extent that it does not exceed the adjusted tax basis of the U.S. holder&rsquo;s stock. Instead, such distribution will reduce
the adjusted tax basis of such stock. To the extent that we make a distribution in excess of both our current and accumulated earnings
and profits and the U.S. holder&rsquo;s adjusted tax basis in its stock, such U.S. holder will recognize long-term capital gain, or short-term
capital gain if the stock has been held for one year or less. The IRS has ruled that if total distributions for two or more classes of
stock are in excess of current and accumulated earnings and profits, dividends must be treated as having been distributed to those stockholders
having a priority under the corporate charter before any distribution to stockholders with lesser priority. If we declare a dividend
in October, November, or December of any year that is payable to a U.S. holder of record on a specified date in any such month, such
dividend shall be treated as both paid by us and received by the U.S. holder on December&nbsp;31 of such year, if we actually pay the
dividend during January of the following calendar year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">U.S. holders may not include
in their individual U.S. federal income tax returns any of our net operating losses or capital losses. Instead, we would carry over such
losses for potential offset against our future income generally. Taxable distributions from us and gain from the disposition of our stock
will not be treated as passive activity income, and, therefore, U.S. holders generally will not be able to apply any &ldquo;passive activity
losses,&rdquo; such as losses from certain types of limited partnerships in which the U.S. holder is a limited partner, against such
income. In addition, taxable distributions from us and gain from the disposition of the stock generally will be treated as investment
income for purposes of the investment interest limitations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We will notify stockholders
after the close of our taxable year as to the portions of the distributions attributable to that year that constitute ordinary income,
return of capital, and capital gain.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B><I>Disposition of Stock.</I></B>&nbsp;&nbsp;&nbsp;In
general, a U.S. holder who is not a dealer in securities must treat any gain or loss realized upon a taxable disposition of our Common
Stock as long-term capital gain or loss if the U.S. holder has held the stock for more than one year and otherwise as short-term capital
gain or loss. However, a U.S. holder must treat any loss upon a sale or exchange of stock held by such U.S. holder for six months or
less as a long-term capital loss to the extent of any actual or deemed distributions from us that such U.S. holder previously has characterized
as long-term capital gain. All or a portion of any loss that a U.S. holder realizes upon a taxable disposition of the stock may be disallowed
if the U.S. holder purchases the same type of stock within 30&nbsp;days before or after the disposition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B><I>Capital Gains and
Losses.</I></B>&nbsp;&nbsp;&nbsp;A taxpayer generally must hold a capital asset for more than one year for gain or loss derived from
its sale or exchange to be treated as long-term capital gain or loss. In general, a U.S. holder will realize gain or loss in an amount
equal to the difference between the sum of the fair market value of any property and the amount of cash received in such disposition
and the U.S. holder&rsquo;s adjusted tax basis. A U.S. holder&rsquo;s adjusted tax basis generally will equal the U.S. holder&rsquo;s
acquisition cost, increased by the excess of net capital gains deemed distributed to the U.S. holder (discussed above) less tax deemed
paid on such gains and reduced by any returns of capital. In general, the maximum U.S. federal income tax rate on long-term capital gain
applicable to non-corporate taxpayers is 20% for sales and exchanges of assets held for more than one year. The maximum U.S. federal
income tax rate on long-term capital gain from the sale or exchange of &ldquo;section 1250 property,&rdquo; or depreciable real property,
is 25% to the extent that such gain, not otherwise treated as ordinary, would have been treated as ordinary income if the property were
 &ldquo;section 1245 property.&rdquo; With respect to distributions that we designate as capital gain dividends and any retained capital
gain that we are deemed to distribute, we generally may designate whether such a distribution is taxable to our non-corporate stockholders
at a 20% or 25% U.S. federal income tax rate. In addition, the characterization of income as capital gain or ordinary income may affect
the deductibility of capital losses. A non-corporate taxpayer may deduct capital losses not offset by capital gains against its ordinary
income only up to a maximum annual amount of $3,000. A non-corporate taxpayer may carry forward unused capital losses indefinitely. A
corporate taxpayer must pay U.S. federal income tax on its net capital gain at ordinary corporate U.S. federal income tax rates. A corporate
taxpayer may deduct capital losses only to the extent of capital gains, with unused losses being carried back three years and forward
five years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B><I>Medicare Ta</I></B>x.&nbsp;&nbsp;&nbsp;A
U.S. holder that is an individual or estate, or a trust that does not fall into a special class of trusts that is exempt from such tax,
will be subject to a 3.8% tax on the lesser of (1)&nbsp;the U.S. holder&rsquo;s &ldquo;net investment income&rdquo; for the relevant
taxable year and (2)&nbsp;the excess of the U.S. holder&rsquo;s modified adjusted gross income for the taxable year over a certain threshold
(which in the case of individuals will be between $125,000 and $250,000 depending on the individual&rsquo;s circumstances). Net investment
income generally includes dividend income and net gains from the disposition of stock, unless such dividend income or net gains are derived
in the ordinary course of the conduct of a trade or business (other than a trade or business that consists of certain passive or trading
activities). A U.S. holder that is an individual, estate or trust, should consult its tax advisor regarding the applicability of the
Medicare tax to its income and gains in respect of its investment in our Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B><I>Information Reporting
Requirements and Backup Withholding.</I></B>&nbsp;&nbsp;&nbsp;We will report to our stockholders and to the IRS the amount of distributions
we pay during each calendar year and the amount of tax we withhold, if any. Under the backup withholding rules, a U.S. holder may be
subject to backup withholding at the rate of 24% with respect to distributions unless such holder:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">comes
                                            within certain exempt categories and, when required, demonstrates this fact; or</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                                                              </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">provides
                                            to the applicable withholding agent a taxpayer identification number, certifies as to no
                                            loss of exemption from backup withholding, and otherwise complies with the applicable requirements
                                            of the backup withholding rules.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">A U.S. holder who does not
provide the applicable withholding agent with its correct taxpayer identification number also may be subject to penalties imposed by
the IRS. Any amount paid as backup withholding will be creditable against the U.S. holder&rsquo;s income tax liability. In addition,
we may be required to withhold a portion of capital gain distributions to any U.S. holders who fail to certify their non-foreign status
to us. See &ldquo;&mdash; Taxation of Non-U.S. Holders of Stock.&rdquo;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Taxation of Tax-Exempt Stockholders</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Tax-exempt entities, including
qualified employee pension and profit sharing trusts and individual retirement accounts, generally are exempt from U.S. federal income
taxation. However, they are subject to taxation on their unrelated business taxable income. While many investments in real estate generate
unrelated business taxable income, the IRS has issued a published ruling that dividend distributions from a REIT to an exempt employee
pension trust do not constitute unrelated business taxable income, provided that the exempt employee pension trust does not otherwise
use the shares of the REIT in an unrelated trade or business of the pension trust. Based on that ruling, amounts that we distribute to
tax-exempt stockholders generally should not constitute unrelated business taxable income. However, if a tax-exempt stockholder were
to finance its acquisition of our stock with debt, a portion of the income that it receives from us would constitute unrelated business
taxable income pursuant to the &ldquo;debt-financed property&rdquo; rules. Furthermore, certain entities that are exempt from taxation
under special provisions of the U.S. federal income tax laws are subject to different unrelated business taxable income rules, which
generally will require them to characterize distributions that they receive from us as unrelated business taxable income. Finally, if
we are a &ldquo;pension-held REIT,&rdquo; a qualified employee pension or profit sharing trust that owns more than 10% of our shares
of stock is required to treat a&nbsp;percentage of the dividends that it receives from us as unrelated business taxable income. That&nbsp;percentage
is equal to the gross income that we derive from an unrelated trade or business, determined as if we were a pension trust, divided by
our total gross income for the year in which we pay the dividends. That rule applies to a pension trust holding more than 10% of our
shares of stock only if:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the&nbsp;percentage
                                            of our dividends that the tax-exempt trust would be required to treat as unrelated business
                                            taxable income is at least 5%;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                 </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">we
                                            qualify as a REIT by reason of the modification of the rule requiring that no more than 50%
                                            of our stock be owned by five or fewer individuals that allows the beneficiaries of the pension
                                            trust to be treated as holding our stock in proportion to their actuarial interests in the
                                            pension trust (see&nbsp;&ldquo;&mdash;&nbsp;Taxation of Our Company&#8201;&mdash;&#8201;Requirements
                                            for REIT Qualification&rdquo;); and</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                             </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">either
                                            (1)&nbsp;one pension trust owns more than 25% of the value of our stock or (2)&nbsp;a group
                                            of pension trusts individually holding more than 10% of the value of our stock collectively
                                            owns more than 50% of the value of our stock.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Although there can be no
assurance that we will not become one in the future, we do not believe that our Company is currently a pension-held REIT.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Taxation of Non-U.S. Holders</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The rules governing federal
income taxation of non-U.S. holders of our Common Stock are complex. A &ldquo;non-U.S. holder&rdquo; means a holder that is not a U.S.
holder, as defined above, and is not an entity treated as a partnership for federal income tax purposes. This section is only a summary
of such rules as they apply to non-U.S. holders of our Common Stock. We urge non-U.S. holders to consult their tax advisors to determine
the impact of federal, state, and local income tax laws on ownership of our Common Stock, including any reporting requirements.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Taxation of Non-U.S. Holders of
Common Stock</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B><I>Distributions.</I></B>&nbsp;&nbsp;&nbsp;The
portion of a distribution that is received by a non-U.S. holder that we do not designate as a capital gain dividend and that is payable
out of our current or accumulated earnings and profits, as well as any other payment that is treated as a dividend as described above
under &ldquo;Taxation of Taxable U.S. Holders of Common Stock,&rdquo; will be subject to U.S. income tax withholding at the rate of 30%
on the gross amount of any such distribution paid unless either:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">a
                                            lower treaty rate applies and the non-U.S. holder furnishes an IRS Form W-8BEN or W-8BEN-E
                                            evidencing eligibility for that reduced rate to the applicable withholding agent; or</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                   </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            non-U.S. holder furnishes an IRS Form W-8ECI to the applicable withholding agent claiming
                                            that the distribution is effectively connected income.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">If a distribution is treated
as effectively connected with the non-U.S. holder&rsquo;s conduct of a U.S. trade or business, the non-U.S. holder generally will be
subject to U.S. federal income tax on the distribution at graduated rates, in the same manner as U.S. holders are taxed with respect
to such distributions. A non-U.S. holder that is a corporation also may be subject to the 30% branch profits tax with respect to a distribution
treated as effectively connected with its conduct of a U.S. trade or business, unless reduced or eliminated by a tax treaty.</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Except as described in the
following paragraph, a non-U.S. holder will not incur tax on a distribution in excess of our current and accumulated earnings and profits
if the excess portion of such distribution does not exceed the adjusted basis of its stock. Instead, the excess portion of such distribution
will reduce the adjusted basis of such stock. A non-U.S. holder will be subject to tax on a distribution that exceeds both our current
and accumulated earnings and profits and the adjusted basis of its stock, if the non-U.S. holder otherwise would be subject to tax on
gain from the sale or disposition of its stock, as described below. If we cannot determine at the time we make a distribution whether
or not the distribution will exceed our current and accumulated earnings and profits, we will treat the entire amount of any distribution
as a taxable dividend. However, a non-U.S. holder may obtain a refund of amounts that we withhold if we later determine that a distribution
in fact exceeded our current and accumulated earnings and profits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">If our stock constitutes
a United States real property interest, as defined below, unless (1)&nbsp;we are a &ldquo;domestically-controlled qualified investment
entity,&rdquo; as defined below, (2)&nbsp;the distribution is with respect to a class of our stock regularly traded on an established
securities market located in the United States and is made to a non-U.S. holder that did not own more than 10% of such class of Common
Stock at any time during the one-year period ending on the date of distribution or (3)&nbsp;the distribution is with respect to stock
held by a &ldquo;qualified shareholder,&rdquo; including stock held indirectly through one or more partnerships (to the extent not held
by an &ldquo;applicable investor&rdquo;), the distribution will give rise to gain from the sale or exchange of such stock, the tax treatment
of which is described below and, we must withhold 15% of any distribution that exceeds our current and accumulated earnings and profits.
A &ldquo;qualified shareholder&rdquo; is generally defined as a foreign person that (i)&nbsp;is eligible for benefits of an income tax
treaty with the United States and the principal class of interests of which is listed and regularly traded on one or more recognized
stock exchanges, or is a foreign partnership that is created or organized under foreign law as a limited partnership in a jurisdiction
that has an agreement for the exchange of information with respect to taxes with the United States and has a class of limited partnership&nbsp;units
which is regularly traded on the New York Stock Exchange or NASDAQ Stock Market and such class of limited partnership&nbsp;units&rsquo;
value is greater than 50% of the value of all the partnership&nbsp;units; (ii)&nbsp;is a &ldquo;qualified collective investment vehicle,&rdquo;
and (iii)&nbsp;maintains records on the identity of each person who, at any time during the foreign person&rsquo;s taxable year, holds
directly 5% or more of the class of interest described in clause (i)&nbsp;above. The benefits of the qualified shareholder exception
do not apply to the extent of the ownership in that shareholder of an &ldquo;applicable investor,&rdquo; generally defined as a more
than 10% owner of the REIT on a look-through basis, taking into account all interests held by such applicable investor in the REIT. Any
distribution to a qualified shareholder shall not be treated as an effectively connected income distribution to the extent that stock
held by such qualified shareholder is not treated as a United States real property interest as provided in an exception described in
this section. Consequently, although we intend to withhold at a rate of 30% on the entire amount of any distribution, to the extent that
we do not do so, we may withhold at a rate of 15% on any portion of a distribution not subject to withholding at a rate of 30%.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">For any year in which we
qualify as a REIT, a non-U.S. holder (other than certain qualified foreign pension funds) may incur tax on distributions that are attributable
(or deemed so attributable pursuant to applicable Treasury regulations) to gain from our sale or exchange of &ldquo;United States real
property interests&rdquo; under special provisions of the U.S. federal income tax laws referred to as &ldquo;FIRPTA.&rdquo; The term
 &ldquo;United States real property interests&rdquo; includes certain interests in real property and stock in corporations at least 50%
of whose assets consists of interests in real property. Under those rules, a non-U.S. holder is generally taxed on distributions attributable
(or deemed attributable) to gain from sales of United States real property interests as if such gain were effectively connected with
a United States business of the non-U.S. holder. A non-U.S. holder thus would be taxed on such a distribution at the normal rates, including
applicable capital gains rates, applicable to U.S. holders, subject to applicable alternative minimum tax and a special alternative minimum
tax in the case of a nonresident alien individual. A non-U.S. corporate holder not entitled to treaty relief or exemption also may be
subject to the 30% branch profits tax on such a distribution. Except as described below with respect to regularly traded stock, we must
withhold 21% of any distribution that we could designate as a capital gain dividend. A non-U.S. holder may receive a credit against its
tax liability for the amount we withhold. Any distribution with respect to any class of stock which is regularly traded on an established
securities market located in the United States, will not be treated as gain recognized from the sale or exchange of a United States real
property interest if the non-U.S. holder did not own more than 10% of such class of stock at any time during the one-year period preceding
the date of the distribution. As a result, non-U.S. holders generally will be subject to withholding tax on such capital gain distributions
in the same manner as they are subject to withholding tax on ordinary dividends. We anticipate that each class of our Common Stock will
be regularly traded on an established securities market in the United States following this offering. If a class of our Common Stock
is not regularly traded on an established securities market in the United States or the non-U.S. holder owned more than 10% of such class
of stock at any time during the one-year period preceding the date of the distribution, capital gain distributions with respect to that
class of capital that are attributable to our sale of real property would be subject to tax under FIRPTA, as described above unless otherwise
excepted. Moreover, if a non-U.S. holder owning more than 5% of a class of our Common Stock disposes of such stock during the 30-day
period preceding the ex-dividend date of a dividend, and such non-U.S. holder (or a person related to such non-U.S. holder) acquires
or enters into a contract or option to acquire our Common Stock within 61&nbsp;days of the first day of the 30-day period described above,
and any portion of such dividend payment would, but for the disposition, be treated as a United States real property interest capital
gain to such non-U.S. holder, then such non-U.S. holder will be treated as having United States real property interest capital gain in
an amount that, but for the disposition, would have been treated as United States real property interest capital gain.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Any distribution that is
made by a REIT that would otherwise be subject to FIRPTA because the distribution is attributable to the disposition of a United States
real property interest will retain its character as FIRPTA income when distributed to any regulated investment company or other REIT,
and will be treated as if it were from the disposition of a United States real property interest by that regulated investment company
or other REIT.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B><I>Disposition of Stock.</I></B>&nbsp;&nbsp;&nbsp;Except
as discussed below, gain on a sale of our Common Stock by a non-U.S. holder generally will not be subject to U.S. taxation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Subject to the exceptions
described in this section, non-U.S. holders (other than certain qualified foreign pension funds) could incur tax under FIRPTA with respect
to gain realized upon a disposition of shares of our Common Stock if shares of our Common Stock are United States real property interests.
Generally, shares of a United States real property holding corporation are United States real property interests. If at least 50% of
a REIT&rsquo;s assets are United States real property interests, then the REIT will be a United States real property holding corporation.
We anticipate that we will be a United States real property holding corporation based on our investment strategy. However, even if we
are a United States real property holding corporation, shares of our Common Stock will not be treated as United States real property
interests and a non-U.S. holder generally will not incur tax under FIRPTA with respect to gain realized upon a disposition of shares
of our Common Stock as long as we are a &ldquo;domestically-controlled qualified investment entity.&rdquo; A domestically-controlled
qualified investment entity includes a REIT in which, at all times during a specified testing period, less than 50% in value of its shares
are held directly or indirectly by non-U.S. holders. We cannot assure you that that test will be met. However, even if we are not a domestically
controlled qualified investment entity, shares of our Common Stock will not be treated as United States real property interests and a
non-U.S. holder generally will not incur tax under FIRPTA with respect to gain realized upon a disposition of shares of our Common Stock,
if such non-U.S. holder owned, actually or constructively, 10% or less of our Common Stock, at all times during a specified testing period
if our Common Stock is &ldquo;regularly traded&rdquo; on an established securities market, or, if such non-U.S. holder is a &ldquo;qualified
shareholder&rdquo; &#8203;(to the extent not allocable to an applicable investor). If the sale, exchange or other taxable disposition
of our Common Stock were subject to taxation under FIRPTA, and if shares of our Common Stock were not &ldquo;regularly traded&rdquo;
on an established securities market, the purchaser of such Common Stock would be required to withhold and remit to the IRS 15% of the
purchase price. If the gain on the sale of the Common Stock were taxed under FIRPTA, a non-U.S. holder would be taxed in the same manner
as U.S. holders with respect to such gain, subject to applicable alternative minimum tax and a special alternative minimum tax in the
case of nonresident alien individuals. Furthermore, a non-U.S. holder generally will incur tax on gain not subject to FIRPTA if (1)&nbsp;the
gain is effectively connected with the non-U.S. holder&rsquo;s U.S. trade or business, in which case the non-U.S. holder will be subject
to the same treatment as U.S. holders with respect to such gain, or (2)&nbsp;the non-U.S. holder is a nonresident alien individual who
was present in the U.S. for 183&nbsp;days or more during the taxable year and has a &ldquo;tax home&rdquo; in the United States, in which
case the non-U.S. holder will incur a 30% tax on his capital gains.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">If we are a domestically
controlled qualified investment entity and a non-U.S. holder disposes of our Common Stock during the 30-day period preceding a dividend
payment, and such non-U.S. holder (or a person related to such non-U.S. holder) acquires or enters into a contract or option to acquire
our Common Stock within 61&nbsp;days of the first day of the 30-day period described above, and any portion of such dividend payment
would, but for the disposition, be treated as a United States real property interest capital gain to such non-U.S. holder, then such
non-U.S. holder shall be treated as having United States real property interest capital gain in an amount that, but for the disposition,
would have been treated as United States real property interest capital gain.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B><I>Information Reporting
Requirements and Backup Withholding.</I></B>&nbsp;&nbsp;&nbsp;Generally, information reporting will apply to payments of distributions
on our stock, and backup withholding may apply at a rate of 24%, unless the payee certifies that it is not a U.S. person or otherwise
establishes an exemption.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The payment of the proceeds
from the disposition of our stock to or through the U.S. office of a U.S. or foreign broker will be subject to information reporting
and, possibly, backup withholding unless the non-U.S. holder certifies as to its non-U.S. status or otherwise establishes an exemption,
provided that the broker does not have actual knowledge that the non-U.S. holder is a U.S. person or that the conditions of any other
exemption are not, in fact, satisfied. The proceeds of the disposition by a non-U.S. holder of our stock to or through a foreign office
of a broker generally will not be subject to information reporting or backup withholding. However, if the broker is a U.S. person, a
controlled foreign corporation for U.S. federal income tax purposes or a foreign person 50% or more of whose gross income from all sources
for specified periods is from activities that are effectively connected with a U.S. trade or business, information reporting generally
will apply unless the broker has documentary evidence as to the non-U.S. holder&rsquo;s foreign status and has no actual knowledge to
the contrary. Backup withholding is not an additional tax. Any amount withheld under the backup withholding rules from a payment to a
non-U.S. holder will be allowed as a credit against such non-U.S. holder&rsquo;s U.S. federal income tax liability (which might entitle
such non-U.S. holder to a refund), <I>provided</I> that the required information is timely furnished to the IRS.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Applicable Treasury Regulations
provide presumptions regarding the status of stockholders when payments to the stockholders cannot be reliably associated with appropriate
documentation provided to the payer. Because the application of these Treasury Regulations varies depending on the stockholder&rsquo;s
particular circumstances, you are urged to consult your tax advisor regarding the information reporting requirements applicable to you.
Copies of information returns that are filed with the IRS may also be made available under the provisions of an applicable treaty or
agreement to the tax authorities of the country in which the non-U.S. holder resides or is established.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Foreign Accounts Tax Compliance
Act Withholding</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Pursuant to the Foreign
Account Tax Compliance Act, or FATCA, foreign financial institutions (which include most foreign hedge funds, private equity funds, mutual
funds, securitization vehicles and any other investment vehicles) and certain other foreign entities must comply with registration and
information reporting rules with respect to their U.S. account holders and investors or be subject to a withholding tax on U.S.-source
payments made to them (whether received as a beneficial owner or as an intermediary for another party). A foreign financial institution
or other foreign entity that does not comply with the FATCA registration and reporting requirements will generally be subject to a new
30% withholding tax on &ldquo;withholdable payments.&rdquo; For this purpose, withholdable payments generally include U.S.-source payments
(including U.S.-source dividends), and (subject to the proposed Treasury Regulations below) the gross proceeds from a sale of equity
or debt instruments of issuers who are considered U.S. issuers under the FATCA rules. The FATCA withholding tax applies even if the payment
would otherwise not be subject to U.S. nonresident withholding tax (<I>e.g.</I>, because it is capital gain). While withholding under
FATCA would have applied also to payments of gross proceeds from the sale or other disposition of stock on or after January&nbsp;1, 2019,
proposed Treasury Regulations eliminate FATCA withholding on payments of gross proceeds entirely. Taxpayers may generally rely on these
proposed Treasury Regulations until final Treasury Regulations are issued. Foreign financial institutions located in jurisdictions that
have an intergovernmental agreement with the United States governing FATCA may be subject to different rules. We will not pay additional
amounts in respect of amounts withheld. Investors should consult their tax advisors regarding FATCA.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Tax Aspects of Our Investments
in the Partnerships</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The following discussion
summarizes certain U.S. federal income tax considerations applicable to our direct or indirect investments in the Partnerships. The discussion
does not cover state or local tax laws or any federal tax laws other than income tax laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We are entitled to include
in our income our distributive share of each Partnership&rsquo;s income and to deduct our distributive share of each Partnership&rsquo;s
losses only if such Partnership is classified for U.S. federal income tax purposes as a partnership (or an entity that is disregarded
for U.S. federal income tax purposes if the entity has only one owner or member), rather than as a corporation or an association taxable
as a corporation. An organization with at least two owners or members will be classified as a partnership, rather than as a corporation,
for U.S. federal income tax purposes if it:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">is
                                            treated as a partnership under Treasury regulations relating to entity classification (the
                                            &ldquo;check-the-box regulations&rdquo;); and</TD></TR>
                                  </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">is
                                            not a &ldquo;publicly-traded&rdquo; partnership.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Under the check-the-box
regulations, an unincorporated entity with at least two owners or members may elect to be classified either as an association taxable
as a corporation or as a partnership. If such an entity fails to make an election, it generally will be treated as a partnership for
U.S. federal income tax purposes. Each Partnership intends to be classified as a partnership (or an entity that is disregarded for U.S.
federal income tax purposes if the entity has only one owner or member) for U.S. federal income tax purposes, and no Partnership will
elect to be treated as an association taxable as a corporation under the check-the-box regulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">A publicly-traded partnership
is a partnership whose interests are traded on an established securities market or are readily tradable on a secondary market or the
substantial equivalent thereof. A publicly-traded partnership will not, however, be treated as a corporation for any taxable year if
90% or more of the partnership&rsquo;s gross income for such year consists of certain passive-type income, including real property rents
(which includes rents that would be qualifying income for purposes of the 75% gross income test, with certain modifications that make
it easier for the rents to qualify for the 90% passive income exception), gains from the sale or other disposition of real property,
interest, and dividends (the &ldquo;90% passive income exception&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Treasury regulations (the
 &ldquo;PTP regulations&rdquo;) provide limited safe harbors from the definition of a publicly-traded partnership. Pursuant to one of
those safe harbors (the &ldquo;private placement exclusion&rdquo;), interests in a partnership will not be treated as readily tradable
on a secondary market or the substantial equivalent thereof if (1)&nbsp;all interests in the partnership were issued in a transaction
or transactions that were not required to be registered under the Securities Act, and (2)&nbsp;the partnership does not have more than
100 partners at any time during the partnership&rsquo;s taxable year. In determining the number of partners in a partnership, a person
owning an interest in a partnership, grantor trust, or S corporation that owns an interest in the partnership is treated as a partner
in such partnership only if (1)&nbsp;substantially all of the value of the owner&rsquo;s interest in the entity is attributable to the
entity&rsquo;s direct or indirect interest in the partnership and (2)&nbsp;a principal purpose of the use of the entity is to permit
the partnership to satisfy the 100-partner limitation. We anticipate that each Partnership will qualify for the private placement exclusion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We have not requested, and
do not intend to request, a ruling from the IRS that the Partnerships will be classified as partnerships (or disregarded entities, if
the entity has only one owner or member) for U.S. federal income tax purposes. If for any reason a Partnership were taxable as a corporation,
rather than as a partnership or a disregarded entity, for U.S. federal income tax purposes, we likely would not be able to qualify as
a REIT. See &ldquo;&mdash; Taxation of Our Company&#8201;&mdash;&#8201;Income Tests&rdquo; and &ldquo;&mdash; Asset Tests.&rdquo; In
addition, any change in a Partnership&rsquo;s status for tax purposes might be treated as a taxable event, in which case we might incur
tax liability without any related cash distribution. See &ldquo;&mdash; Taxation of Our Company&#8201;&mdash;&#8201;Distribution Requirements.&rdquo;
Further, items of income and deduction of such Partnership would not pass through to its partners, and its partners would be treated
as stockholders for tax purposes. Consequently, such Partnership would be required to pay income tax at corporate rates on its net income,
and distributions to its partners would not be deductible in computing such Partnership&rsquo;s taxable income.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Income Taxation of the Partnerships
and Their Partners</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B><I>Partners, Not the
Partnerships, Subject to Tax.</I></B>&nbsp;&nbsp;&nbsp;A partnership is not a taxable entity for U.S. federal income tax purposes. Rather,
we are required to take into account our allocable share of each Partnership&rsquo;s income, gains, losses, deductions, and credits for
any taxable year of such Partnership ending within or with our taxable year, without regard to whether we have received or will receive
any distribution from such Partnership. New audit rules, currently scheduled to become effective for tax years beginning in 2018, will
generally apply to the partnership. Under the new rules, unless an entity elects otherwise, taxes arising from audit adjustments are
required to be paid by the entity rather than by its partners or members. We will have the authority to utilize, and intend to utilize,
any exceptions available under the new provisions (including any changes) and Treasury Regulations so that the partners, to the fullest
extent possible, rather than the partnership itself, will be liable for any taxes arising from audit adjustments to the issuing entity&rsquo;s
taxable income. Prospective investors are urged to consult with their tax advisors regarding the possible effect of the new rules.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B><I>Partnership Allocations.</I></B>&nbsp;&nbsp;&nbsp;Although
a partnership agreement generally will determine the allocation of income, gains, losses, deductions, and credits among partners, such
allocations will be disregarded for U.S. federal income tax purposes if they do not comply with the provisions of the U.S. federal income
tax laws governing partnership allocations. If an allocation is not recognized for U.S. federal income tax purposes, the item subject
to the allocation will be reallocated in accordance with the partners&rsquo; interests in the partnership, which will be determined by
taking into account all of the facts and circumstances relating to the economic arrangement of the partners with respect to such item.
Each Partnership&rsquo;s allocations of taxable income, gains, losses, deductions, and credits are intended to comply with the requirements
of the U.S. federal income tax laws governing partnership allocations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B><I>Tax Allocations With
Respect to Partnership Properties.</I></B>&nbsp;&nbsp;&nbsp;Income, gain, loss, and deduction attributable to appreciated or depreciated
property that is contributed to a partnership in exchange for an interest in the partnership must be allocated in a manner such that
the contributing partner is charged with, or benefits from, respectively, the unrealized gain or unrealized loss associated with the
property at the time of the contribution (the &ldquo;704(c) Allocations&rdquo;). The amount of the unrealized gain or unrealized loss
(&ldquo;built-in gain&rdquo; or &ldquo;built-in loss&rdquo;) is generally equal to the difference between the fair market value of the
contributed property at the time of contribution and the adjusted tax basis of such property at the time of contribution (a &ldquo;book-tax
difference&rdquo;). Any property purchased for cash initially will have an adjusted tax basis equal to its fair market value, resulting
in no book-tax difference. A book-tax difference generally is decreased on an annual basis as a result of depreciation deductions to
the contributing partner for book purposes but not for tax purposes. The 704(c) Allocations are solely for U.S. federal income tax purposes
and do not affect the book capital accounts or other economic or legal arrangements among the partners.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The U.S. Treasury Department
has issued regulations requiring partnerships to use a &ldquo;reasonable method&rdquo; for allocating items with respect to which there
is a book-tax difference and outlining several reasonable allocation methods. Under our operating partnership&rsquo;s partnership agreement,
depreciation or amortization deductions of the operating partnership generally will be allocated among the partners in accordance with
their respective interests in the operating partnership, except to the extent that the operating partnership is required under the U.S.
federal income tax laws governing partnership allocations to use a method for allocating tax depreciation deductions attributable to
contributed properties that results in our receiving a disproportionate share of such deductions. In addition, gain or loss on the sale
of a property that has been contributed, in whole or in part, to the operating partnership will be specially allocated to the contributing
partners to the extent of any built-in gain or loss with respect to such property for U.S. federal income tax purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B><I>Basis in Partnership
Interest.</I></B>&nbsp;&nbsp;&nbsp;Our adjusted tax basis in our partnership interest in the operating partnership generally is equal
to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                            amount of cash and the basis of any other property contributed by us to the operating partnership;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">increased
                                            by our allocable share of the operating partnership&rsquo;s income and gains and our allocable
                                            share of indebtedness of the operating partnership; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">reduced,
                                            but not below zero, by our allocable share of the operating partnership&rsquo;s losses, deductions
                                            and credits and the amount of cash distributed to us, and by constructive distributions resulting
                                            from a reduction in our share of indebtedness of the operating partnership.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">If the allocation of our
distributive share of the operating partnership&rsquo;s loss would reduce the adjusted tax basis of our partnership interest in the operating
partnership below zero, the recognition of such loss will be deferred until such time as the recognition of such loss would not reduce
our adjusted tax basis below zero. To the extent that the operating partnership&rsquo;s distributions, or any decrease in our share of
the indebtedness of the operating partnership, which is considered a constructive cash distribution to the partners, reduce our adjusted
tax basis below zero, such distributions will constitute taxable income to us. Such distributions and constructive distributions normally
will be characterized as long-term capital gain.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B><I>Depreciation Deductions
Available to our Operating Partnership.</I></B>&nbsp;&nbsp;&nbsp;To the extent that our operating partnership acquires its hotels in
exchange for cash, its initial basis in such hotels for U.S. federal income tax purposes generally was or will be equal to the purchase
price paid by our operating partnership. Our operating partnership&rsquo;s initial basis in hotels acquired in exchange for&nbsp;units
in our operating partnership should be the same as the transferor&rsquo;s basis in such hotels on the date of acquisition by our operating
partnership. Although the law is not entirely clear, our operating partnership generally will depreciate such depreciable hotel property
for U.S. federal income tax purposes over the same remaining useful lives and under the same methods used by the transferors. Our operating
partnership&rsquo;s tax depreciation deductions will be allocated among the partners in accordance with their respective interests in
our operating partnership, except to the extent that our operating partnership is required under the U.S. federal income tax laws governing
partnership allocations to use a method for allocating tax depreciation deductions attributable to contributed properties that results
in our receiving a disproportionate share of such deductions.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Sale of a Partnership&rsquo;s
Property</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Generally, any gain realized
by us or a Partnership on the sale of property held for more than one year will be long-term capital gain, except for any portion of
such gain that is treated as depreciation or cost recovery recapture. Any gain or loss recognized by a Partnership on the disposition
of contributed properties will be allocated first to the partners who contributed such properties to the extent of their built-in gain
or loss on those properties for U.S. federal income tax purposes. The partners&rsquo; built-in gain or loss on such contributed properties
will equal the difference between the partners&rsquo; proportionate share of the book value of those properties and the partners&rsquo;
tax basis allocable to those properties at the time of the contribution. Any remaining gain or loss recognized by the Partnership on
the disposition of the contributed properties, and any gain or loss recognized by the Partnership on the disposition of the other properties,
will be allocated among the partners in accordance with their respective&nbsp;percentage interests in the Partnership.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our share of any gain realized
by a Partnership on the sale of any property held by the Partnership as inventory or other property held primarily for sale to customers
in the ordinary course of the Partnership&rsquo;s trade or business will be treated as income from a prohibited transaction that is subject
to a 100% penalty tax. Such prohibited transaction income also may have an adverse effect upon our ability to satisfy the income tests
for REIT status. See &ldquo;&mdash; Taxation of Our Company&#8201;&mdash;&#8201;Income Tests.&rdquo; We, however, do not presently intend
to acquire or hold or to allow any Partnership to acquire or hold any property that represents inventory or other property held primarily
for sale to customers in the ordinary course of our or such Partnership&rsquo;s trade or business.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Taxable REIT Subsidiaries</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We own, directly or indirectly,
the stock of several TRSs. A TRS is a fully taxable corporation for which a TRS election is properly made. A TRS may lease hotels from
us under certain circumstances, provide services to our tenants, and perform activities unrelated to our tenants, such as third-party
management, development, and other independent business activities. A corporation of which a TRS directly or indirectly owns more than
35% of the voting power or value of the stock will automatically be treated as a TRS. Overall, no more than 25% (20% with respect to
taxable years beginning before July&nbsp;31, 2008 and after December&nbsp;31, 2017) of the value of our assets may consist of the securities
of TRSs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">A TRS may not directly or
indirectly operate or manage any hotels or health care facilities or provide rights to any brand name under which any hotel or health
care facility is operated. However, rents received by us from a TRS pursuant to a hotel lease will qualify as &ldquo;rents from real
property&rdquo; as long as the hotel is operated on behalf of the TRS by a person who satisfies the following requirements:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">such
                                            person is, or is related to a person who is, actively engaged in the trade or business of
                                            operating &ldquo;qualified lodging facilities&rdquo; for any person unrelated to us and the
                                            TRS;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">such
                                            person does not own, directly or indirectly, more than 35% of our stock;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">no
                                            more than 35% of such person is owned, directly or indirectly, by one or more persons owning
                                            35% or more of our stock; and</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">we
                                            do not directly or indirectly derive any income from such person.</TD></TR></TABLE>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">A &ldquo;qualified lodging
facility&rdquo; is a hotel, motel, or other establishment more than one-half of the dwelling&nbsp;units in which are used on a transient
basis, unless wagering activities are conducted at or in connection with such facility by any person who is engaged in the business of
accepting wagers and who is legally authorized to engage in such business at or in connection with such facility. A &ldquo;qualified
lodging facility&rdquo; includes customary amenities and facilities operated as part of, or associated with, the lodging facility as
long as such amenities and facilities are customary for other properties of a comparable size and class owned by other unrelated owners.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The TRS rules limit the
deductibility of interest paid or accrued by a TRS to us to assure that the TRS is subject to an appropriate level of corporate taxation.
Further, the rules impose a 100% excise tax on certain transactions between a TRS and us or our tenants that are not conducted on an
arm&rsquo;s-length basis. We intend that all of our transactions with any TRS that we form will be conducted on an arm&rsquo;s-length
basis, but there can be no assurance that we will be successful in this regard.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We have formed and made
a timely election with respect to each of our TRSs, which lease each of our properties not owned by a TRS. Additionally, we may form
or acquire additional TRSs in the future.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">State and Local Taxes</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We and/or you may be subject
to state and local tax in various states and localities, including those states and localities in which we or you transact business,
own property, or reside. The state and local tax treatment in such jurisdictions may differ from the U.S. federal income tax treatment
described above. Consequently, you should consult your own tax advisor regarding the effect of state and local tax laws upon an investment
in our Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-indent: -0.1in">Legislative or Other Actions Affecting
REITs</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The present U.S. federal
income tax treatment of REITs may be modified, possibly with retroactive effect, by legislative, judicial or administrative action at
any time. The REIT rules are constantly under review by persons involved in the legislative process and by the IRS and the U.S. Treasury
Department which may result in statutory changes as well as revisions to regulations and interpretations. Additionally, several of the
tax considerations described herein are currently under review and are subject to change. Prospective investors are urged to consult
with their own tax advisors regarding the effect of potential changes to the federal tax laws on an investment in our Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">THE TAX DISCUSSION SET FORTH
ABOVE IS FOR GENERAL INFORMATION ONLY AND SHOULD NOT BE CONSIDERED TO DESCRIBE FULLY THE TAX CONSEQUENCES OF AN INVESTMENT IN THE COMPANY.
INVESTORS ARE STRONGLY URGED TO CONSULT, AND MUST RELY ON, THEIR OWN TAX ADVISERS WITH RESPECT TO THE TAX CONSEQUENCES OF HOLDING SK
IN THE COMPANY, INCLUDING WITHOUT LIMITATION THE EFFECT OF U.S. FEDERAL TAXES (INCLUDING TAXES OTHER THAN INCOME TAXES) AND STATE, LOCAL
AND FOREIGN TAX CONSIDERATIONS, AS WELL AS THE POTENTIAL CONSEQUENCES OF ANY CHANGES THERETO MADE BY FUTURE LEGISLATIVE, ADMINISTRATIVE
OR JUDICIAL DEVELOPMENTS (WHICH MAY HAVE RETROACTIVE EFFECT).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in"><A NAME="y_007"></A>PLAN
OF DISTRIBUTION</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We are registering the shares
of Common Stock offered by this prospectus to permit the resale of these shares of Common Stock by the selling stockholders listed under
 &ldquo;<I>Selling Stockholders</I>,&rdquo; from time to time after the date of this prospectus. We will not receive any of the proceeds
from the sale by the selling stockholders of the shares of Common Stock offered by this prospectus. We will bear all fees and expenses
incident to our obligation to register the shares of Common Stock offered by this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Each selling stockholder
may sell all or a portion of the shares of Common Stock beneficially owned by it and offered hereby from time to time directly or through
one or more underwriters, broker-dealers or agents. If the shares of Common Stock are sold through underwriters or broker-dealers, such
selling stockholder will be responsible for underwriting discounts or commissions or agent&rsquo;s commissions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The selling stockholders
or their pledgees, donees, transferees, or any of their successors in interest selling shares received from a named selling stockholders
as a gift, partnership distribution or other non-sale-related transfer after the date of this prospectus (all of whom may be selling
stockholders), may, from time to time, sell, transfer or otherwise dispose of any or all of their shares of Common Stock on the NYSE
or any other stock exchange, market or trading facility on which our shares of Common Stock are traded or in private transactions. These
dispositions may be at fixed prices, at prevailing market prices at the time of sale, at prices related to the prevailing market price,
at varying prices determined at the time of sale or at negotiated prices.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The selling stockholders may use any one or more
of the following methods when disposing of their shares of Common Stock:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>ordinary brokerage
                                            transactions and transactions in which the broker-dealer solicits purchasers;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>agented transactions;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>sales directly
                                            into the market;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>ordinary brokerage
                                            transactions and transactions in which the broker-dealer solicits purchasers;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>purchases or
                                            sales by brokers;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>stock loan or
                                            stock pledge transactions;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>block trades
                                            in which the broker-dealer will attempt to sell the shares as agent but may position and
                                            resell a portion of the block as principal to facilitate the transaction;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>purchases by
                                            a broker-dealer as principal and resale by the broker-dealer for its account;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>an exchange
                                            distribution in accordance with the rules of the applicable exchange;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>privately negotiated
                                            transactions;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>underwritten
                                            transactions, including, without limitation, firm-commitment or best efforts underwritten
                                            public offerings;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>short sales;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>through the
                                            writing or settlement of options or other hedging transactions, whether through an options
                                            exchange or otherwise;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>derivative transactions;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>broker-dealers
                                            may agree with a selling stockholder to sell a specified number of such shares at a stipulated
                                            price;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>distribution
                                            to members, limited partners or stockholders of the selling stockholders;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>transfers among
                                            funds affiliated with any of the selling stockholders or other affiliates of the selling
                                            stockholders;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;at the
                                            market&rdquo; or through market makers or into an existing market for the shares of Common
                                            Stock;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>sales not involving
                                            a public offering;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>a combination
                                            of any such methods of sale; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>any other method
                                            permitted pursuant to applicable law.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If a selling stockholder
effects such transactions by selling shares of Common Stock to or through underwriters, broker-dealers or agents, such underwriters,
broker-dealers or agents may receive commissions in the form of discounts, concessions or commissions from such selling stockholder or
commissions from purchasers of the shares of Common Stock for whom they may act as agent or to whom they may sell as principal (which
discounts, concessions or commissions as to particular underwriters, broker-dealers or agents may be in excess of those customary in
the types of transactions involved).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In connection with sales
of the shares of Common Stock or otherwise, a selling stockholder may enter into hedging transactions with broker-dealers, which may,
in turn, engage in short sales of the shares of Common Stock in the course of hedging in positions they assume. A selling stockholder
may also sell shares of Common Stock short and deliver shares of Common Stock covered by this prospectus to close out short positions
and to return borrowed shares in connection with such short sales. A selling stockholder may also loan or pledge shares of Common Stock
to broker-dealers that in turn may sell such shares. A selling stockholder may also enter into option or other transactions with broker-dealers
or other financial institutions or the creation of one or more derivative securities which require the delivery to such broker-dealer
or other financial institution of shares of Common Stock offered by this prospectus, which shares of Common Stock such broker-dealer
or other financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect such transaction).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A selling stockholder may
pledge or grant a security interest in some or all of the shares of Common Stock owned by it and, if it defaults in the performance of
its secured obligations, the pledgees or secured parties may offer and sell the shares of Common Stock from time to time pursuant to
this prospectus or any amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act, amending,
if necessary, the list of selling stockholders to include the pledgee, transferee or other successors in interest as selling stockholders
under this prospectus. A selling stockholder also may transfer and donate the shares of Common Stock in other circumstances, in which
case the transferees, donees, pledgees or other successors in interest will be the selling beneficial owners for purposes of this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The aggregate proceeds to
a selling stockholder from the sale of the shares of Common Stock offered will be the purchase price of the shares of Common Stock less
discounts or commissions, if any. Each selling stockholder reserves the right to accept and, together with its agents from time to time,
to reject, in whole or in part, any proposed purchase of shares of Common Stock to be made directly or through agents. Each selling stockholder
also may resell all or a portion of the shares of Common Stock in open market transactions in reliance upon Rule 144 under the Securities
Act, rather than under this prospectus, provided that each meets the criteria and conforms to the requirements of that rule.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The selling stockholders
and any broker-dealer participating in the distribution of the shares of Common Stock may be deemed to be &ldquo;underwriters&rdquo;
within the meaning of the Securities Act, and any commission paid, or any discounts or concessions allowed to, any such broker-dealer
may be deemed to be underwriting commissions or discounts under the Securities Act. At the time a particular offering of the shares of
Common Stock is made, a prospectus supplement, if required, will be distributed which will set forth the aggregate amount of shares of
Common Stock being offered and the terms of the offering, including the name or names of any broker-dealers or agents, any discounts,
commissions and other terms constituting compensation from the selling stockholders and any discounts, commissions or concessions allowed
or reallowed or paid to broker-dealers. The selling stockholders may indemnify any broker-dealer that participates in transactions involving
the sale of the shares of Common Stock against certain liabilities, including liabilities arising under the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in"><A NAME="y_008"></A>EXPERTS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The historical consolidated
financial statements of our Company as of December&nbsp;31, 2020 and 2019 and for each of the three years in the period ended December&nbsp;31,
2020 and management&rsquo;s assessment of the effectiveness of internal control over financial reporting as of December&nbsp;31, 2020
incorporated by reference in this prospectus and in the registration statement have been so incorporated in reliance on the reports of
BDO USA, LLP, an independent registered public accounting firm, incorporated herein by reference, given on the authority of such firm
as experts on auditing and accounting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in"><A NAME="y_009"></A>LEGAL
MATTERS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The validity of the Common
Stock offered by this prospectus has been passed upon for us by Hogan Lovells US LLP. Certain tax matters have been passed upon for us
by Locke Lord LLP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in"><A NAME="y_010"></A>WHERE
YOU CAN FIND MORE INFORMATION</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">This prospectus contains
certain business and financial information about the Company that is not included in or delivered with this document. We maintain a website
at www.ahtreit.com. On our website, we make available free of charge our annual reports on Form 10-K, quarterly reports on Form 10-Q,
current reports on Form 8-K and other reports filed or furnished pursuant to Section&nbsp;13(a) or 15(d) of the Exchange Act, as soon
as reasonably practicable after we electronically file such material with the SEC. In addition, our Code of Business Conduct and Ethics,
Code of Ethics for the Chief Executive Officer, Chief Financial Officer and Chief Accounting Officer, Corporate Governance Guidelines
and Board Committee Charters are also available free-of-charge on our website or can be made available in print upon request. The information
contained on our website is expressly not incorporated by reference into this prospectus.</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">All reports filed with the
SEC may also be read and copied at the SEC&rsquo;s Public Reference Room at 100&nbsp;F Street, N.E. Washington, D.C. 20549-1090. Further
information regarding the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. In addition, all of our filed
reports can be obtained at the SEC&rsquo;s website at www.sec.gov.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in"><A NAME="y_011"></A>INCORPORATION
BY REFERENCE</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="color: Black">The
SEC permits us to &ldquo;incorporate by reference&rdquo; the information contained in documents we have filed with the SEC, which means
that we can disclose important information to you by referring you to those documents rather than by including them in this prospectus.
Information that is incorporated by reference is considered to be part of this prospectus and you should read it with the same care that
you read this prospectus. We have filed with the SEC, and incorporate by reference in this prospectus:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="color: Black"><A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000123258221000060/aht-20201231.htm" STYLE="-sec-extract: exhibit">Our
                                            Annual Report on Form 10-K for the fiscal year ended December&nbsp;31, 2020, filed with the
                                            SEC on March&nbsp;16, 2021</A>;</FONT></TD></TR><TR STYLE="vertical-align: top">
<TD><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
                                                           </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="color: Black">Our
                                            Quarterly Reports on Form 10-Q for the quarters ended March 31, 2021 and June 30, 2021 filed
                                            with the SEC on <A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000123258221000111/aht-20210331.htm" STYLE="-sec-extract: exhibit">May&nbsp;10,
                                            2021</A> and <A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000123258221000149/aht-20210630.htm" STYLE="-sec-extract: exhibit">August
                                            6, 2021</A>, respectively;</FONT></TD></TR><TR STYLE="vertical-align: top">
<TD><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
                                                                                                               </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="color: Black"><A HREF="https://www.sec.gov/Archives/edgar/data/1232582/000114036121010653/nc10022290x1_def14a.htm" STYLE="-sec-extract: exhibit">Our
                                            Definitive Proxy Statement on Schedule 14A, filed on March 30, 2021</A>;</FONT></TD></TR><TR STYLE="vertical-align: top">
<TD><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
                                                                                                                                                                                                                              </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="color: Black">Our Current Reports on Form 8-K, filed with the SEC on <U><A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000110465921001047/tm2039226d7_8k.htm" STYLE="-sec-extract: exhibit">January&nbsp;5,
                                                                                                                             2021</A></U>, <U><A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000123258221000007/aht-20210104.htm" STYLE="-sec-extract: exhibit">January&nbsp;7,
                                                                                                                             2021</A></U>, <U><A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000110465921004837/tm212996d5_8k.htm" STYLE="-sec-extract: exhibit">January&nbsp;15,
                                                                                                                             2021</A></U>, <U><A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000110465921004747/tm212996d1_8k.htm" STYLE="-sec-extract: exhibit">January&nbsp;15,
                                                                                                                             2021</A></U> (both Form 8-Ks filed on such date), <U><A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000123258221000011/aht-20210119.htm" STYLE="-sec-extract: exhibit">January&nbsp;20,
                                                                                                                             2021</A></U>, <U><A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000123258221000014/aht-20210119.htm" STYLE="-sec-extract: exhibit">January&nbsp;21,
                                                                                                                             2021</A></U>, <U><A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000110465921006690/tm213628d3_8k.htm" STYLE="-sec-extract: exhibit">January&nbsp;22,
                                                                                                                             2021</A></U>, <U><A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000123258221000020/aht-20210129.htm" STYLE="-sec-extract: exhibit">February&nbsp;2,
                                                                                                                             2021</A></U>, <U><A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000110465921026421/tm217602d1_8k.htm" STYLE="-sec-extract: exhibit">February&nbsp;23,
                                                                                                                             2021</A></U>, <U><A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000123258221000035/aht-20210224.htm" STYLE="-sec-extract: exhibit">February&nbsp;24,
                                                                                                                             2021</A> <A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000123258221000036/aht-20210222.htm" STYLE="-sec-extract: exhibit">(Two
                                                                                                                             Filings)</A></U>, <U><A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000123258221000047/aht-20210301.htm" STYLE="-sec-extract: exhibit">March&nbsp;3,
                                                                                                                             2021</A></U>, <U><A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000123258221000053/aht-20210309.htm" STYLE="-sec-extract: exhibit">March&nbsp;11,
                                                                                                                             2021</A></U>, <U><A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000110465921036385/tm219636d1_8k.htm" STYLE="-sec-extract: exhibit">March&nbsp;15,
                                                                                                                             2021</A> <A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000123258221000062/aht-20210315.htm" STYLE="-sec-extract: exhibit">March&nbsp;19,
                                                                                                                             2021</A></U>, <U><A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000123258221000067/aht-20210330.htm" STYLE="-sec-extract: exhibit">April&nbsp;2,
                                                                                                                             2021</A>, <A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000123258221000075/aht-20210407.htm" STYLE="-sec-extract: exhibit">April&nbsp;8,
                                                                                                                             2021</A> <A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000123258221000081/aht-20210408.htm" STYLE="-sec-extract: exhibit">(Two
                                                                                                                             Filings)</A></U>, <U><A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000123258221000085/aht-20210407.htm" STYLE="-sec-extract: exhibit">April&nbsp;9,
                                                                                                                             2021</A></U>, <U><A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000123258221000089/aht-20210415.htm" STYLE="-sec-extract: exhibit">April&nbsp;19,
                                                                                                                             2021</A></U>, <U><A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000123258221000095/aht-20210420.htm" STYLE="-sec-extract: exhibit">April&nbsp;22,
                                                                                                                             2021</A></U>, <U><A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000123258221000112/aht-20210507.htm" STYLE="-sec-extract: exhibit">May
                                                                                                                             10, 2021</A></U>, <U><A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000123258221000114/aht-20210512.htm" STYLE="-sec-extract: exhibit">May
                                                                                                                             12, 2021</A></U>, <U><A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000110465921068880/tm2116632d1_8k.htm" STYLE="-sec-extract: exhibit">May
                                                                                                                             18, 2021</A>, <A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000123258221000118/aht-20210528.htm" STYLE="-sec-extract: exhibit">June
                                                                                                                             1, 2021</A>, <A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000110465921077907/tm2119070d1_8k.htm" STYLE="-sec-extract: exhibit">June
                                                                                                                             8, 2021</A></U>, <U><A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000110465921082902/tm2120176d2_8k.htm" STYLE="-sec-extract: exhibit">June
                                                                                                                             21, 2021</A></U>, <U><A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000123258221000121/aht-20210630.htm" STYLE="-sec-extract: exhibit">June
                                                                                                                             30, 2021</A></U>, <U><A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000123258221000126/aht-20210702.htm" STYLE="-sec-extract: exhibit">July
                                                                                                                             2, 2021</A> <A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000110465921088859/tm2121221d2_8k.htm" STYLE="-sec-extract: exhibit">(Two
                                                                                                                             Filings)</A>, <A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000110465921093098/tm2122248d1_8k.htm" STYLE="-sec-extract: exhibit">July
                                                                                                                             16, 2021</A>, <A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000123258221000131/aht-20210726.htm" STYLE="-sec-extract: exhibit">July
                                                                                                                             26, 2021</A>, <A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000123258221000139/aht-20210728.htm" STYLE="-sec-extract: exhibit">July
                                                                                                                             28, 2021</A>, <A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000123258221000144/aht-20210729.htm" STYLE="-sec-extract: exhibit">July
                                                                                                                             29, 2021</A>, <A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000110465921114295/tm2122600d2_8k.htm" STYLE="-sec-extract: exhibit">September
                                                                                                                             9, 2021</A>, <A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000123258221000167/aht-20210915.htm" STYLE="-sec-extract: exhibit">September
                                                                                                                             15, 2021</A>, <A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000123258221000170/aht-20210922.htm" STYLE="-sec-extract: exhibit">September
                                                                                                                             22, 2021</A></U>, <A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000123258221000175/aht-20211005.htm" STYLE="-sec-extract: exhibit">October
                                                                                                                             5, 2021</A>, <A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000123258221000179/aht-20211007.htm" STYLE="-sec-extract: exhibit">October
                                                                                                                             12, 2021</A> <A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000123258221000182/aht-20211012.htm" STYLE="-sec-extract: exhibit">(Two
                                                                                                                             Filings)</A><A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000110465921125587/tm2129694d1_8k.htm" STYLE="-sec-extract: exhibit">,
                                                                                                                             October 13, 2021, </A> <A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000123258221000185/aht-20211026.htm" STYLE="-sec-extract: exhibit">
                                                                                                                             October 26, 2021</A> and <A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1232582/000123258221000188/aht-20211027.htm" STYLE="-sec-extract: exhibit">October
                                                                                                                             27, 2021</A> (except for the information furnished under Items&nbsp;2.02 or 7.01 and the exhibits furnished therewith);
                                                                                                                             and</FONT></TD></TR><TR STYLE="vertical-align: top">
<TD><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
                                            </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD STYLE="text-align: left"><A HREF="https://www.sec.gov/Archives/edgar/data/1232582/000095013403012052/d08564e8va12b.htm" STYLE="-sec-extract: exhibit">The
                                            description of our Common Stock in our registration statement on Form 8-A filed with the
                                            SEC on August&nbsp;19, 2003 and any amendment or report filed with the SEC for the purpose
                                            of updating such description.</A></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="color: Black">Any
statement contained in any document incorporated by reference herein will be deemed to be modified or superseded for purposes of this
prospectus to the extent that a statement contained in this prospectus or any additional prospectus supplements modifies or supersedes
such statement. Any statement so modified or superseded will not be deemed, except as so modified or superseded, to constitute a part
of this prospectus.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="color: Black">All
reports and other documents we subsequently file pursuant to Section&nbsp;13(a), 1</FONT>3(c), 14 or 15(d) of the Exchange Act prior
to the termination of this offering, including all such documents we may file with the SEC after the date of the initial registration
statement and prior to the effectiveness of the registration statement, but excluding any information furnished to, rather than filed
with, the SEC, will also be incorporated by reference into this prospectus and deemed to be part of this prospectus from the date of
the filing of such reports and documents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We will provide without
charge to each person, including any beneficial owner, to whom this prospectus is delivered, upon written or oral request, a copy of
any or all documents that are incorporated by reference into this prospectus, but not delivered with the prospectus, other than exhibits
to such documents unless such exhibits are specifically incorporated by reference into the documents that this prospectus incorporates.
You should direct written requests to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Ashford Hospitality Trust, Inc.<BR>
14185 Dallas Parkway, Suite 1200<BR>
Dallas, Texas 75254<BR>
(972) 490-9600</B></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>1,745,260 Shares<BR>
ASHFORD HOSPITALITY TRUST, INC.<BR>
Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><IMG SRC="tm2130719d2_s11img001.jpg" ALT="" STYLE="height: 90px; width: 364px"></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PROSPECTUS<BR>
November 2, 2021</B></P>




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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
