Because of continuing unfavorable economic and local market conditions, the Company determined during the first quarter of 2026 that it would explore the portfolio sale of its two limited-service hotels (the “Aloft - Philadelphia” and the “Four Points by Sheraton -Philadelphia”) and an adjacent vacant land parcel (collectively, the “Philadelphia Hotel Portfolio”) located in Philadelphia, Pennsylvania. As a result of this change in strategy; the Company determined the carrying value of the Philadelphia Hotel Portfolio was no longer fully recoverable and therefore, recorded a non-cash impairment charge of $5.2 million to reduce the carrying value of the Philadelphia Hotel Portfolio to its estimated fair value of $16.3 million as of March 31, 2026. In estimating the fair value of the Philadelphia Hotel Portfolio, the Company took into consideration various third-party offers obtained from an independent third-party broker.