Risk Factors Update Summary

• The company may face additional non-cash expenses due to impairments of right-of-use assets, which could significantly impact financial results.
• The company faces substantial doubt about its ability to continue as a going concern, impacting stock price and capital raising efforts.
• The company has a history of net losses, with an accumulated deficit of $1.64 billion at December 31, 2023. This may hinder future profitability.
• Seasonal fluctuations may obscure trends in key metrics like Free Cash Flow, potentially causing stock price declines.
• The company has signed agreements to exit or reduce rent for approximately 105 buildings, expected to improve cash flow by over $40 million annually.
• The Marriott Agreement, announced in August 2024, may not yield anticipated benefits, potentially affecting revenue and operational efficiency.
• As of December 31, 2023, identified material weaknesses in internal control over financial reporting could lead to significant errors in financial statements.
• The company may incur additional compliance costs due to new laws regulating generative AI, impacting operational efficiency and competitive positioning.
• The company expects to receive $15 million of "Key Money" for integration costs with Marriott, but conditions for this funding may not be met.
• The COVID-19 pandemic has adversely impacted operations and may continue to affect demand for accommodations in the future.
• The company’s indebtedness related to Delayed Draw Notes increased to $203.9 million as of June 30, 2024, raising financial risk.
• Newly leased properties may generate revenue later than estimated, complicating integration into operations and potentially increasing costs.
• The company may face challenges in attracting and retaining employees due to volatility in stock price and equity awards.
• The company may face significant statutory damages from privacy-related claims, depending on the volume of data and number of violations.
• The company may face challenges in attracting new guests and retaining existing ones, impacting future revenue and growth objectives.
• Increased reliance on third-party technology systems may expose the company to cybersecurity risks and vulnerabilities, affecting business operations.