ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Maryland | |||
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | ||
44 Hersha Drive | Harrisburg | PA | 17102 |
(Address of Registrant’s Principal Executive Offices) | (Zip Code) |
Title of each class | Trading Symbol | Name of each exchange on which registered |
Class A Common Shares of Beneficial Interest, par value $.01 per share | HT | New York Stock Exchange |
6.875% Series C Cumulative Redeemable Preferred Shares of Beneficial Interest, par value $.01 per share | HT-PC | New York Stock Exchange |
6.50% Series D Cumulative Redeemable Preferred Shares of Beneficial Interest, par value $.01 per share | HT-PD | New York Stock Exchange |
6.50% Series E Cumulative Redeemable Preferred Shares of Beneficial Interest, par value $.01 per share | HT-PE | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ |
Non-accelerated filer | ☐ | Smaller reporting company | ☐ |
Emerging Growth Company | ☐ |
Item No. | Form 10-K Page | |
CAUTIONARY FACTORS THAT MAY AFFECT FUTURE RESULTS | ||
PART I | ||
ITEM 1. | ||
ITEM 1A. | ||
ITEM 1B. | ||
ITEM 2. | ||
ITEM | ||
ITEM 4. | ||
PART II | ||
ITEM 5. | ||
ITEM 6. | ||
ITEM 7. | ||
ITEM 7A. | ||
ITEM 8. | ||
ITEM 9. | ||
ITEM 9A. | ||
ITEM 9B. | ||
PART III | ||
ITEM 10. | ||
ITEM 11. | ||
ITEM 12. | ||
ITEM 13. | ||
ITEM 14. | ||
PART IV | ||
ITEM 15. |
• | ourabilityto maintain our qualification as a real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended, or the Code; |
• | the factors discussed in Item 1A of thisAnnual Report on Form 10-K for the year ended December 31, 2019 under the heading “Risk Factors” and in other reports we file with theU.S. Securities and Exchange Commission (“SEC”)from time to time. |
Item 1. | Business |
Franchisor | Franchises | |
Marriott International | Ritz-Carlton, Marriott, Westin, Residence Inn by Marriott, Courtyard by Marriott, TownePlace Suites, Sheraton Hotels | |
Hilton Hotels Corporation | Hilton Hotels, Hilton Garden Inn, Hampton Inn | |
Hyatt Hotels Corporation | Hyatt, Hyatt House, Hyatt Place | |
IHG | Holiday Inn, Holiday Inn Express, Holiday Inn Express & Suites, Candlewood Suites | |
Pan Pacific Hotel Group | Pan Pacific |
| Wholly Owned | Joint Ventures | Total | |||||||||||||||
Manager | Hotels | Rooms | Hotels | Rooms | Hotels | Rooms | ||||||||||||
Hersha Hospitality Management, L.P. | 37 | 6,018 | 7 | 1,087 | 44 | 7,105 | ||||||||||||
South Bay Boston Management, Inc. | — | — | 2 | 338 | 2 | 338 | ||||||||||||
Marriott Management | 1 | 86 | 1 | 115 | 2 | 201 | ||||||||||||
Total | 38 | 6,104 | 10 | 1,540 | 48 | 7,644 |
Common Shares | ||||||||
Quarter to which Distribution Relates | Record Date | Payment Date | Class A Common Shares and Common Units Per Share and Per Unit Distribution Amount | |||||
2018 | ||||||||
Fourth Quarter | 1/5/2019 | 1/15/2019 | $ | 0.28 | ||||
Third Quarter | 10/1/2018 | 10/15/2018 | 0.28 | |||||
Second Quarter | 6/29/2018 | 7/13/2018 | 0.28 | |||||
First Quarter | 3/29/2018 | 4/13/2018 | 0.28 | |||||
| ||||||||
2017 | ||||||||
Fourth Quarter | 1/5/2018 | 1/16/2018 | $ | 0.28 | ||||
Third Quarter | 9/29/2017 | 10/13/2017 | 0.28 | |||||
Second Quarter | 6/30/2017 | 7/17/2017 | 0.28 | |||||
First Quarter | 3/31/2017 | 4/17/2017 | 0.28 |
Preferred Shares | ||||||||||||||||
Quarter to which Distribution Relates | Record Date | Payment Date | Series C Preferred Per Share Distribution Amount | Series D Preferred Per Share Distribution Amount | Series E Preferred Per Share Distribution Amount | |||||||||||
2018 | ||||||||||||||||
Fourth Quarter | 1/1/2019 | 1/15/2019 | $ | 0.4297 | $ | 0.4063 | $ | 0.4063 | ||||||||
Third Quarter | 10/1/2018 | 10/15/2018 | 0.4297 | 0.4063 | $ | 0.4063 | ||||||||||
Second Quarter | 7/1/2018 | 7/16/2018 | 0.4297 | 0.4063 | $ | 0.4063 | ||||||||||
First Quarter | 4/1/2018 | 4/16/2018 | 0.4297 | 0.4063 | $ | 0.4063 | ||||||||||
2017 | ||||||||||||||||
Fourth Quarter | 1/1/2018 | 1/16/2018 | $ | 0.4297 | $ | 0.4063 | $ | 0.4063 | ||||||||
Third Quarter | 10/1/2017 | 10/17/2017 | 0.4297 | 0.4063 | 0.4063 | |||||||||||
Second Quarter | 7/1/2017 | 7/15/2017 | 0.4297 | 0.4063 | 0.4063 | |||||||||||
First Quarter | 4/1/2017 | 4/15/2017 | 0.4297 | 0.4063 | 0.4063 |
1. | such manager is, or is related to a person who is, actively engaged in the trade or business of operating “qualified lodging facilities” for any person unrelated to us and the TRS; |
2. | such manager does not own, directly or indirectly, more than 35% of our shares; |
3. | no more than 35% of such manager is owned, directly or indirectly, by one or more persons owning 35% or more of our shares; and |
4. | we do not, directly or indirectly, derive any income from such manager. |
Item 1A. | Risk Factors |
Item 1B. | Unresolved Staff Comments |
Item 2. | Properties |
Market | Name | Location | Year Opened | Number of Rooms | |||||
| |||||||||
Boston Urban and Metro | The Envoy, Boston Seaport | Boston, MA | 2015 | 136 | |||||
| The Boxer, Boston | Boston, MA | 2004 | 80 | |||||
| Courtyard by Marriott Brookline | Brookline/Boston, MA (1) | 2003 | 188 | |||||
Holiday Inn Express Cambridge | Cambridge, MA | 1997 | 112 | ||||||
| Mystic Marriott Hotel & Spa | Groton, CT | 2001 | 285 | |||||
| |||||||||
California - Washington | The Ambrose Hotel, Santa Monica | Santa Monica, CA | 2015 | 77 | |||||
| The Sanctuary Beach Resort | Monterey Bay, CA | 2014 | 60 | |||||
| The Hotel Milo, Santa Barbara | Santa Barbara, CA (1) | 2001 | 122 | |||||
| Courtyard by Marriott Los Angeles Westside | Los Angeles, CA | 2008 | 260 | |||||
| Courtyard by Marriott Downtown San Diego | San Diego, CA | 1999 | 245 | |||||
| Courtyard by Marriott Sunnyvale | Sunnyvale, CA | 2014 | 145 | |||||
TownePlace Suites Sunnyvale | Sunnyvale, CA (1) | 2003 | 94 | ||||||
| The Pan Pacific Hotel Seattle | Seattle, WA | 2006 | 153 | |||||
| |||||||||
NYC Urban | Hyatt Union Square | Union Square, New York, NY | 2013 | 178 | |||||
| Duane Street Hotel | TriBeCa, New York, NY | 2008 | 43 | |||||
Hilton Garden Inn Manhattan Midtown East | Midtown East, New York, NY | 2014 | 206 | ||||||
| Hilton Garden Inn TriBeCa | TriBeCa, New York, NY | 2009 | 151 | |||||
| Hampton Inn Seaport | Seaport, New York, NY | 2006 | 65 | |||||
| Holiday Inn Express Chelsea | Madison Square Garden, New York, NY | 2006 | 228 | |||||
| Hilton Garden Inn JFK | JFK Airport, New York, NY (1) | 2005 | 192 | |||||
| Gate Hotel JFK Airport | JFK Airport, New York, NY (1) | 2008 | 150 | |||||
| Nu Hotel, Brooklyn | Brooklyn, New York, NY | 2008 | 93 | |||||
NY-NJ Metro | Hyatt House White Plains | White Plains, NY | 2000 | 187 | |||||
| |||||||||
Philadelphia | The Rittenhouse Hotel | Philadelphia, PA | 2004 | 118 | |||||
| Philadelphia Westin | Philadelphia, PA | 1990 | 294 | |||||
| Hampton Inn Center City/ Convention Center | Philadelphia, PA | 2001 | 250 | |||||
| Sheraton Wilmington South | New Castle, DE | 2011 | 192 |
Market | Name | Location | Year Opened | Number of Rooms | |||||
| |||||||||
South Florida | Cadillac Hotel & Beach Club | Miami, FL | 2004 | 357 | |||||
The Ritz-Carlton, Coconut Grove | Coconut Grove, FL | 2002 | 115 | ||||||
| The Blue Moon Hotel, Miami Beach | Miami, FL | 2013 | 75 | |||||
| The Winter Haven Hotel, Miami Beach | Miami, FL | 2013 | 70 | |||||
| Residence Inn Miami Coconut Grove | Coconut Grove, FL | 2000 | 140 | |||||
| Parrot Key Hotel & Villas | Key West, FL | 2013 | 148 | |||||
| |||||||||
Washington D.C. | The Ritz-Carlton, Georgetown | Georgetown, DC | 2014 | 86 | |||||
The St. Gregory Hotel, Dupont Circle | Washington, DC | 2014 | 155 | ||||||
| The Capitol Hill Hotel | Washington, DC | 2007 | 153 | |||||
| Hilton Garden Inn M Street | Washington, DC | 2014 | 238 | |||||
| Hampton Inn Washington, D.C. | Washington, DC | 2005 | 228 | |||||
| Annapolis Waterfront Hotel | Annapolis, MD (1) | 1968 | 150 | |||||
| |||||||||
| TOTAL ROOMS | 6,219 |
Market | Name | Location | Year Opened | Number of Rooms | HHLP Ownership in Asset | Name | Location | Year Opened | Number of Rooms | HHLP Ownership in Asset | ||||||||||||||
Boston | Courtyard | South Boston, MA (1) | 2005 | 164 | 50.0 | % | Courtyard | South Boston, MA (1) | 2005 | 164 | 50.0 | % | ||||||||||||
Holiday Inn Express | South Boston, MA (1) | 1998 | 174 | 50.0 | % | Holiday Inn Express | South Boston, MA (1) | 1998 | 174 | 50.0 | % | |||||||||||||
NYC Urban | Hampton Inn Manhattan/ Times Square South | Times Square, New York, NY | 2009 | 184 | 31.2 | % | Hampton Inn Manhattan/ Times Square South | Times Square, New York, NY | 2009 | 184 | 31.2 | % | ||||||||||||
Hampton Inn Manhattan- Chelsea | Chelsea/Manhattan, New York, NY | 2003 | 144 | 31.2 | % | Hampton Inn Manhattan- Chelsea | Chelsea/Manhattan, New York, NY | 2003 | 144 | 31.2 | % | |||||||||||||
Hampton Inn Manhattan- Madison Sqaure Garden | Herald Square, New York, NY | 2005 | 136 | 31.2 | % | Hampton Inn Manhattan- Madison Sqaure Garden | Herald Square, New York, NY | 2005 | 136 | 31.2 | % | |||||||||||||
Holiday Inn New York City- Wall Street | Wall Street, New York, NY | 2010 | 113 | 31.2 | % | Holiday Inn New York City- Wall Street | Wall Street, New York, NY | 2010 | 113 | 31.2 | % | |||||||||||||
Holiday Inn Express New York City Times Sqaure | Times Square, New York, NY | 2009 | 210 | 31.2 | % | Holiday Inn Express New York City Times Sqaure | Times Square, New York, NY | 2009 | 210 | 31.2 | % | |||||||||||||
Holiday Inn Express Wall Street | Water Street, New York, NY | 2010 | 112 | 31.2 | % | Holiday Inn Express Wall Street | Water Street, New York, NY | 2010 | 112 | 31.2 | % | |||||||||||||
Candlewood Suites New York City- Times Square | Times Square, New York, NY | 2009 | 188 | 31.2 | % | Candlewood Suites New York City- Times Square | Times Square, New York, NY | 2009 | 188 | 31.2 | % | |||||||||||||
TOTAL ROOMS | 1,237 | TOTAL ROOMS | 1,425 | |||||||||||||||||||||
Item 3. | Legal Proceedings |
Item 4. | Mine Safety Disclosures |
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | |||||||||||||||||||||||||||||||||||
Hersha Hospitality Trust | $ | 100.00 | $ | 131.43 | $ | 106.53 | $ | 110.19 | $ | 95.32 | $ | 101.71 | $ | 100.00 | $ | 81.06 | $ | 83.84 | $ | 72.52 | $ | 77.39 | $ | 68.74 | ||||||||||||||||||||||
S&P 500 | 100.00 | 113.69 | 115.26 | 129.05 | 157.22 | 150.33 | 100.00 | 101.38 | 113.51 | 138.29 | 132.23 | 173.86 | ||||||||||||||||||||||||||||||||||
Russell 2000 | 100.00 | 104.90 | 100.27 | 121.60 | 139.39 | 124.02 | 100.00 | 95.59 | 115.93 | 132.88 | 118.23 | 148.36 | ||||||||||||||||||||||||||||||||||
MSCI US REIT Index | 100.00 | 130.40 | 133.69 | 145.21 | 152.66 | 145.78 | 100.00 | 102.52 | 111.36 | 117.07 | 111.79 | 140.73 | ||||||||||||||||||||||||||||||||||
SNL Hotel REIT Index | 100.00 | 131.99 | 102.11 | 126.55 | 134.49 | 116.38 | 100.00 | 77.36 | 95.88 | 101.89 | 88.46 | 102.19 |
Issuer Purchases of Common Shares (1) | |||||||||||||||
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased As Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (in thousands) | (2) | ||||||||||
January 1 to January 31, 2019 | 273,538 | $ | 16.91 | 273,538 | $ | 45,375 | |||||||||
February 1 to February 28, 2019 | — | — | — | 45,375 | |||||||||||
March 1 to March 31, 2019 | — | — | — | 45,375 | |||||||||||
April 1 to April 30, 2019 | — | — | — | 45,375 | |||||||||||
May 1 to May 31, 2019 | — | — | — | 45,375 | |||||||||||
June 1 to June 30, 2019 | — | — | — | 45,375 | |||||||||||
July 1 to July 31, 2019 | — | — | — | 45,375 | |||||||||||
August 1 to August 31, 2019 | 641,984 | 14.52 | 915,522 | 36,053 | |||||||||||
September 1 to September 30, 2019 | 17,914 | 13.83 | 933,436 | 35,805 | |||||||||||
October 1 to October 31, 2019 | — | — | — | 35,805 | |||||||||||
November 1 to November 30, 2019 | — | — | — | 35,805 | |||||||||||
December 1 to December 31, 2019 | — | — | — | — |
Issuer Purchases of Common Shares | |||||||||||||||
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased As Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (in thousands) | (1) | ||||||||||
January 1 to January 31, 2018 | — | $ | — | — | $ | 100,000 | |||||||||
February 1 to February 28, 2018 | 286,527 | 17.08 | 286,527 | 95,107 | |||||||||||
March 1 to March 31, 2018 | 349,063 | 16.98 | 635,590 | 89,179 | |||||||||||
April 1 to April 30, 2018 | — | — | — | 89,179 | |||||||||||
May 1 to May 31, 2018 | — | — | — | 89,179 | |||||||||||
June 1 to June 30, 2018 | — | — | — | 89,179 | |||||||||||
July 1 to July 31, 2018 | — | — | — | 89,179 | |||||||||||
August 1 to August 31, 2018 | — | — | — | 89,179 | |||||||||||
September 1 to September 30, 2018 | — | — | — | 89,179 | |||||||||||
October 1 to October 31, 2018 | — | — | — | 89,179 | |||||||||||
November 1 to November 30, 2018 | — | — | — | 89,179 | |||||||||||
December 1 to December 31, 2018 | — | — | — | 89,179 |
Item 6. | Selected Financial Data |
2018 | 2017 | 2016 | 2015 | 2014 | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||||||||||
Hotel Operating Revenues | $ | 493,678 | $ | 497,140 | $ | 466,370 | $ | 470,272 | $ | 417,226 | $ | 529,668 | $ | 493,678 | $ | 497,140 | $ | 466,370 | $ | 470,272 | ||||||||||||||||||
Other Revenues | 1,385 | 1,097 | 259 | 113 | 180 | 292 | 1,385 | 1,097 | 259 | 113 | ||||||||||||||||||||||||||||
Total Revenue | 495,063 | 498,237 | 466,629 | 470,385 | 417,406 | 529,960 | 495,063 | 498,237 | 466,629 | 470,385 | ||||||||||||||||||||||||||||
Operating Expenses: | ||||||||||||||||||||||||||||||||||||||
Hotel Operating Expenses | 298,849 | 295,050 | 262,956 | 254,313 | 227,324 | 317,436 | 298,849 | 295,050 | 262,956 | 254,313 | ||||||||||||||||||||||||||||
Hotel Ground Rent | 4,228 | 3,460 | 3,600 | 3,137 | 2,433 | 4,581 | 4,228 | 3,460 | 3,600 | 3,137 | ||||||||||||||||||||||||||||
Real Estate and Personal Property Taxes and Property Insurance | 35,194 | 32,300 | 32,157 | 34,518 | 30,342 | 38,601 | 35,194 | 32,300 | 32,157 | 34,518 | ||||||||||||||||||||||||||||
General and Administrative (including Share Based Payments of $11,436, $9,286, $8,048, $6,523, $6,028) | 26,881 | 23,553 | 24,444 | 20,515 | 20,363 | |||||||||||||||||||||||||||||||||
General and Administrative (including Share Based Payments of $10,803, $11,436, $9,286, $8,048, $6,523) | 26,431 | 26,881 | 23,553 | 24,444 | 20,515 | |||||||||||||||||||||||||||||||||
Acquisition and Terminated Transaction Costs | 29 | 2,203 | 2,560 | 1,119 | 2,472 | — | 29 | 2,203 | 2,560 | 1,119 | ||||||||||||||||||||||||||||
Loss from Impairment of Assets | — | 4,082 | — | — | — | — | — | 4,082 | — | — | ||||||||||||||||||||||||||||
Depreciation and Amortization | 89,831 | 83,752 | 75,390 | 74,390 | 69,167 | 96,529 | 89,831 | 83,752 | 75,390 | 74,390 | ||||||||||||||||||||||||||||
(Gain) Loss in Excess of Estimated Insurance Recoveries | (12,649 | ) | 4,268 | — | — | (4,604 | ) | 12 | (12,649 | ) | 4,268 | — | — | |||||||||||||||||||||||||
Contingent Consideration | — | — | — | — | 2,000 | |||||||||||||||||||||||||||||||||
Total Operating Expenses | 442,363 | 448,668 | 401,107 | 387,992 | 349,497 | 483,590 | 442,363 | 448,668 | 401,107 | 387,992 | ||||||||||||||||||||||||||||
Operating Income | 52,700 | 49,569 | 65,522 | 82,393 | 67,909 | 46,370 | 52,700 | 49,569 | 65,522 | 82,393 | ||||||||||||||||||||||||||||
Interest Income | 114 | 271 | 362 | 193 | 805 | 253 | 114 | 271 | 362 | 193 | ||||||||||||||||||||||||||||
Interest Expense | (48,491 | ) | (42,662 | ) | (44,352 | ) | (43,557 | ) | (43,357 | ) | (52,205 | ) | (48,491 | ) | (42,662 | ) | (44,352 | ) | (43,557 | ) | ||||||||||||||||||
Other Expense | (901 | ) | (771 | ) | (961 | ) | (367 | ) | (485 | ) | (584 | ) | (901 | ) | (771 | ) | (961 | ) | (367 | ) | ||||||||||||||||||
Gain on Disposition of Hotel Properties | 4,148 | 90,350 | 115,839 | — | 7,195 | — | 4,148 | 90,350 | 115,839 | — | ||||||||||||||||||||||||||||
Gain on Hotel Acquisitions, net | — | — | — | — | 12,667 | |||||||||||||||||||||||||||||||||
Development Loan Recovery | — | — | — | — | 22,494 | |||||||||||||||||||||||||||||||||
Lease Buyout | — | 268 | (16,831 | ) | — | — | — | — | 268 | (16,831 | ) | — | ||||||||||||||||||||||||||
Loss on Debt Extinguishment | (22 | ) | (590 | ) | (1,187 | ) | (561 | ) | (670 | ) | (280 | ) | (22 | ) | (590 | ) | (1,187 | ) | (561 | ) | ||||||||||||||||||
Income before Income (Loss) from Unconsolidated Joint Venture Investments and Discontinued Operations | 7,548 | 96,435 | 118,392 | 38,101 | 66,558 | |||||||||||||||||||||||||||||||||
Income (Loss) before Income (Loss) from Unconsolidated Joint Venture Investments and Discontinued Operations | (6,446 | ) | 7,548 | 96,435 | 118,392 | 38,101 | ||||||||||||||||||||||||||||||||
Income (Loss) from Unconsolidated Joint Ventures | 1,084 | (2,473 | ) | (1,823 | ) | 965 | 693 | 691 | 1,084 | (2,473 | ) | (1,823 | ) | 965 | ||||||||||||||||||||||||
Gain from Remeasurement of Investment in Unconsolidated Joint Ventures | — | 16,240 | — | — | — | — | — | 16,240 | — | — |
2018 | 2017 | 2016 | 2015 | 2014 | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||||||||||||
Income (Loss) from Unconsolidated Joint Venture Investments | 1,084 | 13,767 | (1,823 | ) | 965 | 693 | 691 | 1,084 | 13,767 | (1,823 | ) | 965 | ||||||||||||||||||||||||||
Income Before Income Taxes | 8,632 | 110,202 | 116,569 | 39,066 | 67,251 | |||||||||||||||||||||||||||||||||
Income (Loss) Before Income Taxes | (5,755 | ) | 8,632 | 110,202 | 116,569 | 39,066 | ||||||||||||||||||||||||||||||||
Income Tax (Expense) Benefit | (267 | ) | (5,262 | ) | 4,888 | 3,141 | 2,685 | (92 | ) | (267 | ) | (5,262 | ) | 4,888 | 3,141 | |||||||||||||||||||||||
Income from Continuing Operations | 8,365 | 104,940 | 121,457 | 42,207 | 69,936 | |||||||||||||||||||||||||||||||||
Discontinued Operations: | ||||||||||||||||||||||||||||||||||||||
Loss on Disposition of Hotel Properties | — | — | — | — | (128 | ) | ||||||||||||||||||||||||||||||||
Impairment of Assets Held for Sale | — | — | — | — | (1,800 | ) | ||||||||||||||||||||||||||||||||
Income from Discontinued Operations | — | — | — | — | 263 | |||||||||||||||||||||||||||||||||
Loss from Discontinued Operations | — | — | — | — | (1,665 | ) | ||||||||||||||||||||||||||||||||
Net Income | 8,365 | 104,940 | 121,457 | 42,207 | 68,271 | |||||||||||||||||||||||||||||||||
Net Income (Loss) | (5,847 | ) | 8,365 | 104,940 | 121,457 | 42,207 | ||||||||||||||||||||||||||||||||
Loss (Income) Allocated to Noncontrolling Interests- Common Units | 916 | (5,072 | ) | (4,477 | ) | (411 | ) | (1,016 | ) | 2,366 | 916 | (5,072 | ) | (4,477 | ) | (411 | ) | |||||||||||||||||||||
Loss Allocated to Noncontrolling Interests- Consolidated Joint Ventures | 709 | — | — | — | — | |||||||||||||||||||||||||||||||||
(Income) Loss Allocated to Noncontrolling Interests- Consolidated Joint Ventures | (188 | ) | 709 | — | — | — | ||||||||||||||||||||||||||||||||
Preferred Distributions | (24,174 | ) | (24,169 | ) | (17,380 | ) | (14,356 | ) | (14,356 | ) | (24,174 | ) | (24,174 | ) | (24,169 | ) | (17,380 | ) | (14,356 | ) | ||||||||||||||||||
Extinguishment of Issuance Costs Upon Redemption of Preferred Shares | — | — | (4,021 | ) | — | — | — | — | — | (4,021 | ) | — | ||||||||||||||||||||||||||
Net (Loss) Income applicable to Common Shareholders | (14,184 | ) | 75,699 | $ | 95,579 | $ | 27,440 | $ | 52,899 | (27,843 | ) | (14,184 | ) | 75,699 | $ | 95,579 | $ | 27,440 | ||||||||||||||||||||
Basic (Loss) Income from Continuing Operations applicable to Common Shareholders | $ | (0.38 | ) | $ | 1.82 | $ | 2.21 | $ | 0.56 | $ | 1.08 | $ | (0.74 | ) | $ | (0.38 | ) | $ | 1.82 | $ | 2.21 | $ | 0.56 | |||||||||||||||
Diluted (Loss) Income from Continuing Operations applicable to Common Shareholders (1) | (0.38 | ) | 1.79 | 2.18 | 0.56 | 1.07 | (0.74 | ) | (0.38 | ) | 1.79 | 2.18 | 0.56 | |||||||||||||||||||||||||
Dividends declared per Common Share | 1.12 | 1.12 | 1.32 | 1.12 | 1.04 | 1.12 | 1.12 | 1.12 | 1.32 | 1.12 | ||||||||||||||||||||||||||||
Balance Sheet Data | ||||||||||||||||||||||||||||||||||||||
Net investment in hotel properties | $ | 2,026,659 | $ | 2,009,572 | $ | 1,767,570 | $ | 1,831,119 | $ | 1,745,483 | $ | 1,975,973 | $ | 2,026,659 | $ | 2,009,572 | $ | 1,767,570 | $ | 1,831,119 | ||||||||||||||||||
Assets Held for Sale | — | 15,987 | 98,473 | — | — | — | — | 15,987 | 98,473 | — | ||||||||||||||||||||||||||||
Noncontrolling Interests Common Units | 62,010 | 54,286 | 44,321 | 31,876 | 29,082 | 64,144 | 62,010 | 54,286 | 44,321 | 31,876 | ||||||||||||||||||||||||||||
Noncontrolling Interests Consolidated Variable Interest Entity | — | — | — | (1,760 | ) | (1,075 | ) | — | — | — | — | (1,760 | ) | |||||||||||||||||||||||||
Shareholder's equity | 892,805 | 833,868 | 835,418 | 678,039 | 829,381 | 807,657 | 892,805 | 833,868 | 835,418 | 678,039 | ||||||||||||||||||||||||||||
Total assets | 2,138,630 | 2,138,336 | 2,155,536 | 1,962,649 | 1,855,539 | 2,122,428 | 2,138,630 | 2,138,336 | 2,155,536 | 1,962,649 | ||||||||||||||||||||||||||||
Total debt | 1,093,031 | 1,093,013 | 1,051,899 | 1,169,964 | 918,923 | 1,128,199 | 1,093,031 | 1,093,013 | 1,051,899 | 1,169,964 | ||||||||||||||||||||||||||||
Liabilities related to Assets Held for Sale | — | — | 51,428 | — | — | — | — | — | 51,428 | — | ||||||||||||||||||||||||||||
Other Data | ||||||||||||||||||||||||||||||||||||||
Net cash provided by operating activities | $ | 114,822 | $ | 107,123 | $ | 81,567 | $ | 121,831 | $ | 111,622 | $ | 103,112 | $ | 114,822 | $ | 107,123 | $ | 81,567 | $ | 121,831 | ||||||||||||||||||
Net cash (used in) provided by investing activities | $ | (17,965 | ) | $ | (99,663 | ) | $ | 144,704 | $ | (141,660 | ) | $ | (188,229 | ) | $ | (53,566 | ) | $ | (17,965 | ) | $ | (99,663 | ) | $ | 144,704 | $ | (141,660 | ) | ||||||||||
Net cash (used in) provided by financing activities | $ | (81,660 | ) | $ | (176,511 | ) | $ | (78,793 | ) | $ | 28,372 | $ | 53,072 | $ | (53,344 | ) | $ | (81,660 | ) | $ | (176,511 | ) | $ | (78,793 | ) | $ | 28,372 | |||||||||||
Weighted average shares outstanding | ||||||||||||||||||||||||||||||||||||||
Basic | 39,383,763 | 41,423,804 | 42,957,199 | 47,786,811 | 49,777,302 | 38,907,894 | 39,383,763 | 41,423,804 | 42,957,199 | 47,786,811 | ||||||||||||||||||||||||||||
Diluted (1) | 39,383,763 | 42,056,431 | 43,530,731 | 48,369,658 | 50,307,506 | 38,907,894 | 39,383,763 | 42,056,431 | 43,530,731 | 48,369,658 |
Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
COMPARABLE CONSOLIDATED HOTELS: | ||||||||||||||||||||||||||||
(Includes 37 hotels in both years) | (Includes 38 hotels in both years) | (Includes 36 hotels in both years) | ||||||||||||||||||||||||||
Year Ended 2018 | Year Ended 2017 | 2018 vs. 2017 % Variance | Year Ended 2017 | Year Ended 2016 | 2017 vs. 2016 % Variance | Year Ended 2019 | Year Ended 2018 | 2019 vs. 2018 % Variance | ||||||||||||||||||||
(dollars in thousands except ADR and RevPAR) | (dollars in thousands except ADR and RevPAR) | |||||||||||||||||||||||||||
Occupancy | 82.3 | % | 83.1 | % | -80 bps | 83.9 | % | 82.6 | % | 125 bps | 83.1 | % | 82.0 | % | 116 bps | |||||||||||||
Average Daily Rate (ADR) | $ | 227.61 | $ | 221.58 | 2.7% | $ | 219.70 | $ | 218.08 | 0.7% | $ | 226.12 | $ | 227.31 | (0.5)% | |||||||||||||
Revenue Per Available Room (RevPAR) | $ | 187.35 | $ | 184.15 | 1.7% | $ | 184.23 | $ | 180.14 | 2.3% | $ | 187.94 | $ | 186.31 | 0.9% | |||||||||||||
Room Revenues | $ | 389,067 | $ | 382,120 | 1.8% | $ | 383,311 | $ | 376,574 | 1.8% | $ | 386,435 | $ | 383,055 | 0.9% | |||||||||||||
Hotel Operating Revenues | $ | 483,037 | $ | 469,714 | 2.8% | $ | 470,287 | $ | 459,489 | 2.4% | $ | 480,796 | $ | 475,999 | 1.0% |
COMPARABLE UNCONSOLIDATED JOINT VENTURES: | ||||||||||
| (Includes 9 hotels in both years) | |||||||||
| Year Ended 2019 | Year Ended 2018 | 2019 vs. 2018 % Variance | |||||||
| (dollars in thousands except ADR and RevPAR) | |||||||||
Occupancy | 91.9 | % | 92.8 | % | -89 bps | |||||
Average Daily Rate (ADR) | $ | 197.48 | $ | 207.68 | (4.9)% | |||||
Revenue Per Available Room (RevPAR) | $ | 181.46 | $ | 192.69 | (5.8)% | |||||
| ||||||||||
Room Revenues | $ | 94,384 | $ | 98,123 | (3.8)% | |||||
Total Revenues | $ | 96,784 | $ | 100,438 | (3.6)% |
COMPARABLE UNCONSOLIDATED JOINT VENTURES: | |||||||||||||||||||
| (Includes 9 hotels in both years) | (Includes 9 hotels in both years) | |||||||||||||||||
| Year Ended 2018 | Year Ended 2017 | 2018 vs. 2017 % Variance | Year Ended 2017 | Year Ended 2016 | 2017 vs. 2016 % Variance | |||||||||||||
| (dollars in thousands except ADR and RevPAR) | ||||||||||||||||||
Occupancy | 92.8 | % | 90.5 | % | 228 bps | 90.5 | % | 89.5 | % | 102 bps | |||||||||
Average Daily Rate (ADR) | $ | 207.68 | $ | 206.21 | 0.7% | $ | 206.21 | $ | 206.45 | -0.1% | |||||||||
Revenue Per Available Room (RevPAR) | $ | 192.69 | $ | 186.63 | 3.3% | $ | 186.63 | $ | 184.72 | 1.0% | |||||||||
| |||||||||||||||||||
Room Revenues | $ | 98,123 | $ | 93,254 | 5.2% | $ | 93,254 | $ | 92,557 | 0.8% | |||||||||
Total Revenues | $ | 100,438 | $ | 95,219 | 5.5% | $ | 95,219 | $ | 95,239 | —% |
Hotel Operating Revenue for the year ended December 31, 2017 | $ | 497,140 | |||||
Incremental Revenue Additions from Acquisitions (1/1/2017 - 12/31/2018): | |||||||
| The Ritz-Carlton – Coconut Grove, FL | $ | 2,401 | ||||
| The Pan Pacific Hotel- Seattle, WA | $ | 2,462 | ||||
| The Westin- Philadelphia, PA | $ | 15,876 | ||||
| The Annapolis Waterfront Hotel- Annapolis, MD | $ | 9,573 | ||||
| Total Incremental Revenue from Acquisitions | 30,312 | |||||
Revenue Reductions from Dispositions (1/1/2017 - 12/31/2018): | |||||||
| Residence Inn - Greenbelt, MD | $ | (35 | ) | |||
| Courtyard - Alexandria, VA | $ | (17 | ) | |||
| Hyatt House - Scottsdale, AZ | $ | (4,346 | ) | |||
| Hyatt House - Pleasant Hill, CA | $ | (3,511 | ) | |||
| Hyatt House - Pleasanton, CA | $ | (3,740 | ) | |||
| Holiday Inn Express - Chester, NY | $ | (2,579 | ) | |||
Hyatt House - Gaithersburg, MD | $ | (4,201 | ) | ||||
Hampton Inn Pearl Street - New York, NY | $ | (5,124 | ) | ||||
Residence Inn, Tysons Corner, VA | $ | (626 | ) | ||||
| Total Revenue Reductions from Dispositions | (24,179 | ) | ||||
Revenue Reduction due to Hurricane Impacted Hotel Closures | (18,322 | ) | |||||
Change in Hotel Operating Revenue for Remaining Hotels | 8,727 | ||||||
Hotel Operating Revenue for the year ended December 31, 2018 | $ | 493,678 |
Hotel Operating Revenue for the year ended December 31, 2018 | $ | 493,678 | |||||
Incremental Revenue Additions from Acquisitions (1/1/2018 - 12/31/2019): | |||||||
| The Annapolis Waterfront Hotel- Annapolis, MD | $ | 3,044 | ||||
| Total Incremental Revenue from Acquisitions | 3,044 | |||||
Revenue Reductions from Dispositions (1/1/2018 - 12/31/2019): | |||||||
Hampton Inn Pearl Street - New York, NY | $ | (530 | ) | ||||
Residence Inn, Tysons Corner, VA | $ | (3,674 | ) | ||||
| Total Revenue Reductions from Dispositions | (4,204 | ) | ||||
Revenue Additions due to Hurricane Impacted Hotel Re-Openings | 33,107 | ||||||
Change in Hotel Operating Revenue for Remaining Hotels | 4,043 | ||||||
Hotel Operating Revenue for the year ended December 31, 2019 | $ | 529,668 |
Hotel Operating Expenses for the year ended December 31, 2017 | $ | 295,050 | |||||
Incremental Expense Additions from Acquisitions (1/1/2017 - 12/31/2018): | |||||||
| The Ritz-Carlton - Coconut Grove, FL | $ | 2,374 | ||||
| The Pan Pacific Hotel - Seattle, WA | $ | 1,612 | ||||
| The Westin - Philadelphia, PA | $ | 9,038 | ||||
The Annapolis Waterfront Hotel- Annapolis, MD | $ | 4,594 | |||||
| Total Incremental Expenses from Acquisitions | 17,618 | |||||
Expense Reductions from Dispositions (1/1/2017 - 12/31/2018): | |||||||
| Residence Inn - Greenbelt, MD | $ | (21 | ) | |||
| Courtyard - Alexandria, VA | $ | (48 | ) | |||
Hyatt House - Scottsdale, AZ | $ | (2,086 | ) | ||||
Hyatt House - Pleasant Hill, CA | $ | (1,807 | ) | ||||
Hyatt House - Pleasanton, CA | $ | (1,862 | ) | ||||
Holiday Inn Express - Chester, NY | $ | (1,755 | ) | ||||
Hyatt House - Gaithersburg, MD | $ | (3,053 | ) | ||||
Hampton Inn Pearl Street - New York, NY | $ | (2,639 | ) | ||||
Residence Inn, Tysons Corner, VA | $ | (373 | ) | ||||
Total Expense Reductions from Dispositions | (13,644 | ) | |||||
Expense Reductions due to Hurricane Impacted Hotel Closures | (4,508 | ) | |||||
Change in Hotel Operating Expenses for Remaining Hotels | 4,333 | ||||||
Hotel Operating Expenses for the year ended December 31, 2018 | $ | 298,849 |
Hotel Operating Expenses for the year ended December 31, 2018 | $ | 298,849 | |||||
Incremental Expense Additions from Acquisitions (1/1/2018 - 12/31/2019): | |||||||
The Annapolis Waterfront Hotel- Annapolis, MD | $ | 1,531 | |||||
| Total Incremental Expenses from Acquisitions | 1,531 | |||||
Expense Reductions from Dispositions (1/1/2018 - 12/31/2019): | |||||||
Hampton Inn Pearl Street - New York, NY | $ | (602 | ) | ||||
Residence Inn, Tysons Corner, VA | (2,067 | ) | |||||
Total Expense Reductions from Dispositions | (2,669 | ) | |||||
Expense Additions due to Hurricane Impacted Hotel Re-Openings | 14,216 | ||||||
Change in Hotel Operating Expenses for Remaining Hotels | 5,509 | ||||||
Hotel Operating Expenses for the year ended December 31, 2019 | $ | 317,436 |
Hotel Operating Revenue for the year ended December 31, 2016 | $ | 466,370 | |||||
Incremental Revenue Additions from Acquisitions (1/1/2016 - 12/31/2017): | |||||||
Sanctuary Resort – Monterey, CA | $ | 1,119 | |||||
Hilton Garden Inn M Street – Washington, DC | 2,640 | ||||||
The Envoy - Boston, MA | 11,624 | ||||||
Courtyard - Sunnyvale, CA | 9,094 | ||||||
The Ambrose - Santa Monica, CA | 6,775 | ||||||
Mystic Marriott Hotel & Spa - Groton, CT | 21,248 | ||||||
The Ritz-Carlton - Coconut Grove, FL | 13,376 | ||||||
The Pan Pacific Hotel - Seattle, WA | 13,127 | ||||||
The Westin - Philadelphia | 14,382 | ||||||
Total Incremental Revenue from Acquisitions | 93,385 | ||||||
Revenue Reductions from Dispositions (1/1/2016 - 12/31/2017): | |||||||
Cindat Hotel Portfolio (7 hotels) | (18,109 | ) | |||||
Hyatt Place - King of Prussia, PA | (1,460 | ) | |||||
Hawthorn Suites - Franklin, MA | (2,117 | ) | |||||
Residence Inn - Framingham, MA | (4,770 | ) | |||||
Residence Inn - Norwood, MA | (3,669 | ) | |||||
Residence Inn - Greenbelt, MD | (6,394 | ) | |||||
Courtyard - Alexandria, VA | (7,414 | ) | |||||
Hyatt House - Scottsdale, AZ | (3,211 | ) | |||||
Hyatt House - Pleasant Hill, CA | (5,059 | ) | |||||
Hyatt House - Pleasanton, CA | (4,806 | ) | |||||
Holiday Inn Express - Chester, NY | (352 | ) | |||||
Total Revenue Reductions from Dispositions | (57,361 | ) | |||||
Revenue Reduction due to Hurricane Impacted Hotel Closures | (7,638 | ) | |||||
Change in Hotel Operating Revenue for Remaining Hotels | 2,384 | ||||||
Hotel Operating Revenue for the year ended December 31, 2017 | $ | 497,140 |
Hotel Operating Expenses for the year ended December 31 2016 | $ | 262,956 | |||||
Incremental Expense Additions from Acquisitions (1/1/2016 - 12/31/2017): | |||||||
Sanctuary Resort – Monterey, CA | $ | 1,559 | |||||
Hilton Garden Inn M Street – Washington, DC | 1,341 | ||||||
The Envoy - Boston, MA | 6,870 | ||||||
Courtyard - Sunnyvale, CA | 3,996 | ||||||
The Ambrose - Santa Monica, CA | 3,386 | ||||||
Mystic Marriott Hotel & Spa - Groton, CT | 15,289 | ||||||
The Ritz-Carlton - Coconut Grove, FL | 11,670 | ||||||
The Pan Pacific Hotel - Seattle, WA | 9,502 | ||||||
The Westin - Philadelphia | 8,502 | ||||||
Total Incremental Expenses from Acquisitions | 62,115 | ||||||
Expense Reductions from Dispositions (1/1/2016 - 12/31/2017): | |||||||
Cindat Hotel Portfolio (7 hotels) | (10,901 | ) | |||||
Hyatt Place - King of Prussia, PA | (1,155 | ) | |||||
Hawthorn Suites - Franklin, MA | (1,279 | ) | |||||
Residence Inn - Framingham, MA | (2,420 | ) | |||||
Residence Inn - Norwood, MA | (1,811 | ) | |||||
Residence Inn - Greenbelt, MD | (2,994 | ) | |||||
Courtyard - Alexandria, VA | (4,914 | ) | |||||
Hyatt House - Scottsdale, AZ | (1,894 | ) | |||||
Hyatt House - Pleasant Hill, CA | (2,402 | ) | |||||
Hyatt House - Pleasanton, CA | (2,215 | ) | |||||
Holiday Inn Express - Chester, NY | (157 | ) | |||||
Total Expense Reductions from Dispositions | (32,142 | ) | |||||
Expense Reductions due to Hurricane Impacted Hotel Closures | (3,401 | ) | |||||
Change in Hotel Operating Expenses for Remaining Hotels | 5,522 | ||||||
Hotel Operating Expenses for the year ended December 31, 2017 | $ | 295,050 |
Hotel | Acquisition Date | Land | Buildings and Improvements | Furniture, Fixtures and Equipment | Other Intangibles | Total Purchase Price | Assumption of Debt | |||||||||||||||||||||
Annapolis Waterfront Hotel, MD | 3/28/2018 | $ | — | $ | 43,251 | $ | 1,802 | $ | (3,199 | ) | * | $ | 41,854 | $ | — |
• | A decrease in comparative cash flows of $64,880 as we sold no hotel properties for the year ended December 31, 2019 compared to the sale of three hotel properties for the year ended December 31, 2018; |
• | A decrease in comparative cash flows of $15,806 because we received no insurance proceeds during 2019 compared to $15,806 in insurance proceeds related to claims for property losses as a result of Hurricane Irma during the year ended December 31, 2018; |
• | A decrease in comparative cash flows of $46,340 related to distributions from unconsolidated joint ventures mostly related to $47,738 in proceeds from the redemption of our preferred equity investment in our Cindat joint venture during 2018; |
• | An increase in comparative cash flows of $41,230 as we purchased no hotel properties during the year ended December 31, 2019 compared to the purchase of one hotel property during 2018; and |
• | An increase in comparative cash flows of $55,295 related to a decrease in spending on capital expenditures, planned property repositioning, restaurant re-concepting, and construction to repair damage caused by Hurricane Irma for the year ended December 31, 2019 compared to 2018. |
• | An increase in comparative cash flows of $44,100 related to net increased borrowings on our line of credit during the year ended December 31, 2019 compared to 2018. |
• | An increase in comparative cash flows of $18,000 as a result of no change in the balance on our Term Loans during the year ended December 31, 2019 compared to net repayments on our Term Loans during 2018. |
• | A decrease in comparative cash flows of $27,338 related to net repayments on borrowings under mortgages payable during year ended December 31, 2019 compared to net proceeds from mortgages payable during 2018 due to the origination of the mortgage on the Annapolis Waterfront Hotel. |
Year Ended | Year Ended | |||||||||||||||||||||
December 31, 2018 | December 31, 2017 | December 31, 2016 | December 31, 2019 | December 31, 2018 | December 31, 2017 | |||||||||||||||||
Net (loss) income applicable to common shareholders | $ | (14,184 | ) | $ | 75,699 | $ | 95,579 | $ | (27,843 | ) | $ | (14,184 | ) | $ | 75,699 | |||||||
(Loss) Income allocated to noncontrolling interests | (1,625 | ) | 5,072 | 4,477 | (2,178 | ) | (1,625 | ) | 5,072 | |||||||||||||
(Income) loss from unconsolidated joint ventures | (1,084 | ) | (13,767 | ) | 1,823 | |||||||||||||||||
Income from unconsolidated joint ventures | (691 | ) | (1,084 | ) | (13,767 | ) | ||||||||||||||||
Gain on disposition of hotel properties | (4,148 | ) | (90,350 | ) | (115,839 | ) | — | (4,148 | ) | (90,350 | ) | |||||||||||
Loss from impairment of depreciable assets | — | 5,926 | — | — | — | 5,926 | ||||||||||||||||
Depreciation and amortization | 89,831 | 83,752 | 75,390 | 96,529 | 89,831 | 83,752 | ||||||||||||||||
Funds from consolidated hotel operations applicable to common shareholders and Partnership units | 68,790 | 66,332 | 61,430 | 65,817 | 68,790 | 66,332 | ||||||||||||||||
Income (loss) from Unconsolidated Joint Ventures | 1,084 | 13,767 | (1,823 | ) | ||||||||||||||||||
Income from Unconsolidated Joint Ventures | 691 | 1,084 | 13,767 | |||||||||||||||||||
Gain from remeasurement of investment in unconsolidated joint ventures | — | (16,240 | ) | — | — | — | (16,240 | ) | ||||||||||||||
Unrecognized pro rata interest in (loss) income | (4,115 | ) | 7,398 | 9,783 | ||||||||||||||||||
Unrecognized pro rata interest in income (loss) (1) | (4,246 | ) | (4,115 | ) | 7,398 | |||||||||||||||||
Depreciation and amortization of purchase price in excess of historical cost | 94 | (1,207 | ) | (418 | ) | 96 | 94 | (1,207 | ) | |||||||||||||
Interest in depreciation and amortization of unconsolidated joint ventures | 4,536 | 3,967 | 5,036 | 5,234 | 4,536 | 3,967 | ||||||||||||||||
Funds from unconsolidated joint ventures operations applicable to common shareholders and Partnership units | 1,599 | 7,685 | 12,578 | 1,775 | 1,599 | 7,685 | ||||||||||||||||
Funds from Operations applicable to common shareholders and Partnership units | $ | 70,389 | $ | 74,017 | $ | 74,008 | $ | 67,592 | $ | 70,389 | $ | 74,017 | ||||||||||
Weighted Average Common Shares and Units Outstanding | ||||||||||||||||||||||
Basic | 39,383,763 | 41,423,804 | 42,957,199 | 38,907,894 | 39,383,763 | 41,423,804 | ||||||||||||||||
Diluted | 43,411,274 | 44,834,724 | 45,740,227 | 43,390,093 | 43,411,274 | 44,834,724 |
Adjustment made to add depreciation of purchase price in excess of historical cost of the assets in the unconsolidated joint venture at the time of our investment. |
Adjustment made to add our interest in real estate related depreciation and amortization of our unconsolidated joint ventures. Allocation of depreciation and amortization is consistent with allocation of income and loss. |
Balance as Reported at December 31, 2017 | Cumulative Effect of the Adoption of ASC 610-20 | Balance at January 1, 2018, as Adjusted | |||||||||
Investment in Unconsolidated Joint Ventures | $ | 3,569 | $ | 47,738 | $ | 51,307 | |||||
Deferred Gain on Disposition of Hotel Assets | $ | 81,284 | $ | (81,284 | ) | $ | — | ||||
Distributions in Excess of Net Income | $ | (335,373 | ) | $ | 123,228 | $ | (212,145 | ) | |||
Noncontrolling Interests | $ | 54,286 | $ | 5,793 | $ | 60,079 |
Contractual Obligations | Total | Less Than 1 Year | 1 - 3 Years | 4 - 5 Years | After 5 Years | Total | Less Than 1 Year | 1 - 3 Years | 4 - 5 Years | After 5 Years | ||||||||||||||||||||||||||||
Long Term Debt | $ | 386,444 | $ | 102,370 | $ | 129,853 | $ | 23,831 | $ | 130,390 | $ | 385,496 | $ | 1,699 | $ | 130,145 | $ | 164,273 | $ | 89,379 | ||||||||||||||||||
Interest Expense on Long Term Debt | 90,769 | 17,364 | 22,242 | 14,736 | 36,427 | 86,477 | 17,022 | 27,922 | 14,840 | 26,693 | ||||||||||||||||||||||||||||
Unsecured Term Loans | 700,900 | — | 493,900 | 207,000 | — | 700,900 | — | 400,900 | 300,000 | — | ||||||||||||||||||||||||||||
Unsecured Line of Credit | 10,000 | — | 10,000 | — | — | 48,000 | — | 48,000 | — | — | ||||||||||||||||||||||||||||
Interest Expense on Credit Facility | 76,024 | 29,396 | 39,939 | 6,689 | — | 84,299 | 27,561 | 39,135 | 17,603 | — | ||||||||||||||||||||||||||||
Hotel Ground Rent and Office Rent | 293,222 | 4,585 | 9,343 | 8,316 | 270,978 | 312,292 | 4,930 | 9,465 | 8,919 | 288,978 | ||||||||||||||||||||||||||||
Total | $ | 1,557,359 | $ | 153,715 | $ | 705,277 | $ | 260,572 | $ | 437,795 | $ | 1,617,464 | $ | 51,212 | $ | 655,567 | $ | 505,635 | $ | 405,050 |
Item 7A. | Quantitative and Qualitative Disclosures About Market Risk (in thousands, except per share data) |
Less Than 1 Year | 1 - 3 Years | 4 - 5 Years | After 5 Years | Total | Less Than 1 Year | 1 - 3 Years | 4 - 5 Years | After 5 Years | Total | |||||||||||||||||||||||||||||
Fixed Rate Debt | $ | 1,437 | $ | 598,475 | $ | 230,020 | $ | 51,931 | $ | 881,863 | $ | 1,699 | $ | 505,263 | $ | 437,054 | $ | 37,832 | $ | 981,848 | ||||||||||||||||||
Weighted Average Interest Rate | 4.26 | % | 4.33 | % | 4.79 | % | 4.74 | % | 4.34 | % | 3.87 | % | 3.86 | % | 3.72 | % | 3.69 | % | 3.79 | % | ||||||||||||||||||
Floating Rate Debt | $ | 100,933 | $ | 25,278 | $ | 811 | $ | 78,460 | $ | 205,482 | $ | — | $ | 25,781 | $ | 27,219 | $ | 51,548 | $ | 104,548 | ||||||||||||||||||
Weighted Average Interest Rate | 5.04 | % | 5.27 | % | 5.40 | % | 5.47 | % | 5.10 | % | 4.43 | % | 4.63 | % | 4.68 | % | 4.76 | % | 4.62 | % | ||||||||||||||||||
$ | 102,370 | $ | 623,753 | $ | 230,831 | $ | 130,391 | $ | 1,087,345 | $ | 1,699 | $ | 531,044 | $ | 464,273 | $ | 89,380 | $ | 1,086,396 | |||||||||||||||||||
Line of Credit | $ | — | $ | 10,000 | $ | — | $ | — | $ | 10,000 | $ | — | $ | 48,000 | $ | — | $ | — | $ | 48,000 | ||||||||||||||||||
Weighted Average Interest Rate | — | % | 4.77 | % | — | % | — | % | 4.77 | % | — | % | 4.01 | % | — | % | — | % | 4.01 | % | ||||||||||||||||||
$ | 102,370 | $ | 633,753 | $ | 230,831 | $ | 130,391 | $ | 1,097,345 | $ | 1,699 | $ | 579,044 | $ | 464,273 | $ | 89,380 | $ | 1,134,396 |
Item 8. | Financial Statements and Supplementary Data |
Hersha Hospitality Trust | Page |
| |
December 31, 2018 | December 31, 2017 | December 31, 2019 | December 31, 2018 | |||||||||||
Assets: | ||||||||||||||
Investment in Hotel Properties, Net of Accumulated Depreciation | $ | 2,026,659 | $ | 2,009,572 | $ | 1,975,973 | $ | 2,026,659 | ||||||
Investment in Unconsolidated Joint Ventures | 4,004 | 3,569 | 8,446 | 4,004 | ||||||||||
Cash and Cash Equivalents | 32,598 | 17,945 | 27,012 | 32,598 | ||||||||||
Escrow Deposits | 8,185 | 7,641 | 9,973 | 8,185 | ||||||||||
Hotel Accounts Receivable, Net of Allowance for Doubtful Accounts of $188 and $49 | 10,241 | 11,999 | ||||||||||||
Hotel Accounts Receivable, Net of Allowance for Doubtful Accounts of $0 and $188 | 9,213 | 10,241 | ||||||||||||
Due from Related Parties | 3,294 | 5,322 | 6,113 | 3,294 | ||||||||||
Intangible Assets, Net of Accumulated Amortization of $7,308 and $6,598 | 13,644 | 16,388 | ||||||||||||
Intangible Assets, Net of Accumulated Amortization of $6,545 and $7,308 | 2,137 | 13,644 | ||||||||||||
Right of Use Assets | 45,384 | — | ||||||||||||
Other Assets | 40,005 | 49,913 | 38,177 | 40,005 | ||||||||||
Hotel Assets Held for Sale | — | 15,987 | ||||||||||||
Total Assets | $ | 2,138,630 | $ | 2,138,336 | $ | 2,122,428 | $ | 2,138,630 | ||||||
Liabilities and Equity: | ||||||||||||||
Line of Credit | $ | 10,000 | $ | 16,100 | $ | 48,000 | $ | 10,000 | ||||||
Unsecured Term Loans, Net of Unamortized Deferred Financing Costs (Note 5) | 698,202 | 715,449 | 697,183 | 698,202 | ||||||||||
Unsecured Notes Payable, Net of Unamortized Deferred Financing Costs (Note 5) | 50,684 | 53,781 | 50,736 | 50,684 | ||||||||||
Mortgages Payable, Net of Unamortized Premium and Unamortized Deferred Financing Costs | 334,145 | 307,683 | 332,280 | 334,145 | ||||||||||
Lease Liabilities | 54,548 | — | ||||||||||||
Accounts Payable, Accrued Expenses and Other Liabilities | 70,947 | 58,770 | 47,626 | 70,947 | ||||||||||
Dividends and Distributions Payable | 17,129 | 17,115 | 17,058 | 17,129 | ||||||||||
Deferred Gain on Disposition of Hotel Assets | — | 81,284 | ||||||||||||
Total Liabilities | $ | 1,181,107 | $ | 1,250,182 | $ | 1,247,431 | $ | 1,181,107 | ||||||
Redeemable Noncontrolling Interests - Consolidated Joint Venture (Note 1) | 2,708 | — | 3,196 | 2,708 | ||||||||||
Equity: | ||||||||||||||
Shareholders' Equity: | ||||||||||||||
Preferred Shares: $.01 Par Value, 29,000,000 Shares Authorized, 3,000,000 Series C, 7,701,700 Series D and 4,001,514 Series E Shares Issued and Outstanding at December 31, 2018, and 3,000,000 Series C, 7,701,700 Series D and 4,000,000 Series E Shares Issued and Outstanding at December 31, 2017, with Liquidation Preferences of $25 Per Share (Note 1) | $ | 147 | $ | 147 | ||||||||||
Common Shares: Class A, $.01 Par Value, 104,000,000 Shares Authorized at December 31, 2018 and December 31, 2017; 39,458,626 and 39,916,661 Shares Issued and Outstanding at December 31, 2018 and December 31, 2017, respectively | 395 | 399 | ||||||||||||
Common Shares: Class B, $.01 Par Value, 1,000,000 Shares Authorized, None Issued and Outstanding at December 31, 2018 and December 31, 2017 | — | — | ||||||||||||
Preferred Shares: $.01 Par Value, 29,000,000 Shares Authorized, 3,000,000 Series C, 7,701,700 Series D and 4,001,514 Series E Shares Issued and Outstanding at December 31, 2019 and December 31, 2018, with Liquidation Preferences of $25 Per Share (Note 1) | $ | 147 | $ | 147 | ||||||||||
Common Shares: Class A, $.01 Par Value, 104,000,000 Shares Authorized at December 31, 2019 and December 31, 2018; 38,652,650, and 39,458,626 Shares Issued and Outstanding at December 31, 2019 and December 31, 2018, respectively | 387 | 395 | ||||||||||||
Common Shares: Class B, $.01 Par Value, 1,000,000 Shares Authorized, None Issued and Outstanding at December 31, 2019 and December 31, 2018 | — | — | ||||||||||||
Accumulated Other Comprehensive Income | 4,227 | 3,749 | 1,010 | 4,227 | ||||||||||
Additional Paid-in Capital | 1,155,776 | 1,164,946 | 1,144,808 | 1,155,776 | ||||||||||
Distributions in Excess of Net Income | (267,740 | ) | (335,373 | ) | (338,695 | ) | (267,740 | ) | ||||||
Total Shareholders' Equity | 892,805 | 833,868 | 807,657 | 892,805 | ||||||||||
Noncontrolling Interests (Note 1): | 62,010 | 54,286 | 64,144 | 62,010 | ||||||||||
Total Equity | 954,815 | 888,154 | 871,801 | 954,815 | ||||||||||
Total Liabilities and Equity | $ | 2,138,630 | $ | 2,138,336 | ||||||||||
Total Liabilities, Redeemable Noncontrolling Interests, and Equity | $ | 2,122,428 | $ | 2,138,630 |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||
2018 | 2017 | 2016 | 2019 | 2018 | 2017 | |||||||||||||||||
Revenue: | ||||||||||||||||||||||
Hotel Operating Revenues: | ||||||||||||||||||||||
Room | $ | 397,907 | $ | 411,149 | $ | 408,844 | $ | 424,698 | $ | 397,907 | $ | 411,149 | ||||||||||
Food & Beverage | 64,546 | 58,491 | 35,366 | 65,379 | 64,546 | 58,491 | ||||||||||||||||
Other Operating Revenues | 31,225 | 27,500 | 22,160 | 39,591 | 31,225 | 27,500 | ||||||||||||||||
Other Revenues | 1,385 | 1,097 | 259 | 292 | 1,385 | 1,097 | ||||||||||||||||
Total Revenues | 495,063 | 498,237 | 466,629 | 529,960 | 495,063 | 498,237 | ||||||||||||||||
Operating Expenses: | ||||||||||||||||||||||
Hotel Operating Expenses: | ||||||||||||||||||||||
Room | 88,663 | 90,716 | 89,055 | 93,488 | 88,663 | 90,716 | ||||||||||||||||
Food & Beverage | 52,122 | 47,906 | 29,566 | 52,820 | 52,122 | 47,906 | ||||||||||||||||
Other Operating Expenses | 158,064 | 156,428 | 144,335 | 171,128 | 158,064 | 156,428 | ||||||||||||||||
Hotel Ground Rent | 4,228 | 3,460 | 3,600 | 4,581 | 4,228 | 3,460 | ||||||||||||||||
Real Estate and Personal Property Taxes and Property Insurance | 35,194 | 32,300 | 32,157 | 38,601 | 35,194 | 32,300 | ||||||||||||||||
General and Administrative (including Share Based Payments of $11,436, $9,286, and $8,048 for the years ended December 31, 2018, 2017, and 2016, respectively) | 26,881 | 23,553 | 24,444 | |||||||||||||||||||
General and Administrative (including Share Based Payments of $10,803, $11,436, and $9,286 for the years ended December 31, 2019, 2018, and 2017, respectively) | 26,431 | 26,881 | 23,553 | |||||||||||||||||||
Acquisition and Terminated Transaction Costs | 29 | 2,203 | 2,560 | — | 29 | 2,203 | ||||||||||||||||
Loss on Impairment of Assets | — | 4,082 | — | — | — | 4,082 | ||||||||||||||||
Depreciation and Amortization | 89,831 | 83,752 | 75,390 | 96,529 | 89,831 | 83,752 | ||||||||||||||||
(Gains from) Property Losses in Excess of Insurance Recoveries | (12,649 | ) | 4,268 | — | 12 | (12,649 | ) | 4,268 | ||||||||||||||
Total Operating Expenses | 442,363 | 448,668 | 401,107 | 483,590 | 442,363 | 448,668 | ||||||||||||||||
Operating Income | 52,700 | 49,569 | 65,522 | 46,370 | 52,700 | 49,569 | ||||||||||||||||
Interest Income | 114 | 271 | 362 | 253 | 114 | 271 | ||||||||||||||||
Interest Expense | (48,491 | ) | (42,662 | ) | (44,352 | ) | (52,205 | ) | (48,491 | ) | (42,662 | ) | ||||||||||
Other Expense | (901 | ) | (771 | ) | (961 | ) | (584 | ) | (901 | ) | (771 | ) | ||||||||||
Gain on Disposition of Hotel Properties | 4,148 | 90,350 | 115,839 | — | 4,148 | 90,350 | ||||||||||||||||
Lease Buyout | — | 268 | (16,831 | ) | — | — | 268 | |||||||||||||||
Loss on Debt Extinguishment | (22 | ) | (590 | ) | (1,187 | ) | (280 | ) | (22 | ) | (590 | ) | ||||||||||
Income Before Results from Unconsolidated Joint Venture Investments and Income Taxes | 7,548 | 96,435 | 118,392 | |||||||||||||||||||
(Loss) Income Before Results from Unconsolidated Joint Venture Investments and Income Taxes | (6,446 | ) | 7,548 | 96,435 | ||||||||||||||||||
Income (Loss) from Unconsolidated Joint Ventures | 1,084 | (2,473 | ) | (1,823 | ) | 691 | 1,084 | (2,473 | ) | |||||||||||||
Gain from Remeasurement of Investment in Unconsolidated Joint Venture | — | 16,240 | — | — | — | 16,240 | ||||||||||||||||
Income (Loss) from Unconsolidated Joint Venture Investments | 1,084 | 13,767 | (1,823 | ) | ||||||||||||||||||
Income from Unconsolidated Joint Venture Investments | 691 | 1,084 | 13,767 | |||||||||||||||||||
Income Before Income Taxes | 8,632 | 110,202 | 116,569 | |||||||||||||||||||
(Loss) Income Before Income Taxes | (5,755 | ) | 8,632 | 110,202 | ||||||||||||||||||
Income Tax (Expense) Benefit | (267 | ) | (5,262 | ) | 4,888 | |||||||||||||||||
Income Tax Expense | (92 | ) | (267 | ) | (5,262 | ) | ||||||||||||||||
Net Income | 8,365 | 104,940 | 121,457 | |||||||||||||||||||
Net (Loss) Income | (5,847 | ) | 8,365 | 104,940 | ||||||||||||||||||
Loss (Income) Allocated to Noncontrolling Interests - Common Units | 916 | (5,072 | ) | (4,477 | ) | 2,366 | 916 | (5,072 | ) | |||||||||||||
Loss Allocated to Noncontrolling Interests - Consolidated Joint Venture | 709 | — | — | |||||||||||||||||||
(Income) Loss Allocated to Noncontrolling Interests - Consolidated Joint Venture | (188 | ) | 709 | — | ||||||||||||||||||
Preferred Distributions | (24,174 | ) | (24,169 | ) | (17,380 | ) | (24,174 | ) | (24,174 | ) | (24,169 | ) | ||||||||||
Extinguishment of Issuance Costs Upon Redemption of Preferred Shares | — | — | (4,021 | ) | ||||||||||||||||||
Net (Loss) Income Applicable to Common Shareholders | $ | (14,184 | ) | $ | 75,699 | $ | 95,579 | $ | (27,843 | ) | $ | (14,184 | ) | $ | 75,699 |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||
2018 | 2017 | 2016 | 2019 | 2018 | 2017 | |||||||||||||||||
Earnings Per Share: | ||||||||||||||||||||||
BASIC | ||||||||||||||||||||||
(Loss) Income from Continuing Operations Applicable to Common Shareholders | $ | (0.38 | ) | $ | 1.82 | $ | 2.21 | $ | (0.74 | ) | $ | (0.38 | ) | $ | 1.82 | |||||||
DILUTED | ||||||||||||||||||||||
(Loss) Income from Continuing Operations Applicable to Common Shareholders | $ | (0.38 | ) | $ | 1.79 | $ | 2.18 | $ | (0.74 | ) | $ | (0.38 | ) | $ | 1.79 | |||||||
Weighted Average Common Shares Outstanding: | ||||||||||||||||||||||
Basic | 39,383,763 | 41,423,804 | 42,957,199 | 38,907,894 | 39,383,763 | 41,423,804 | ||||||||||||||||
Diluted* | 39,383,763 | 42,056,431 | 43,530,731 | 38,907,894 | 39,383,763 | 42,056,431 |
* | Income allocated to noncontrolling interest in Hersha Hospitality Limited Partnership (the “Operating Partnership” or “HHLP”) has been excluded from the numerator and the Class A common shares issuable upon any redemption of the Operating Partnership’s common units of limited partnership interest (“Common Units”) and the Operating Partnership’s vested LTIP units (“Vested LTIP Units”) have been omitted from the denominator for the purpose of computing diluted earnings per share because the effect of including these shares and units in the numerator and denominator would have no impact. In addition, potentially dilutive common shares, if any, have been excluded from the denominator if they are anti-dilutive to income applicable to common shareholders. |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||
2018 | 2017 | 2016 | 2019 | 2018 | 2017 | |||||||||||
Common Units and Vested LTIP Units | 3,141,981 | 2,778,293 | 2,209,496 | 3,363,169 | 3,141,981 | 2,778,293 | ||||||||||
Unvested Stock Awards and LTIP Units Outstanding | 358,141 | — | — | 651,093 | 358,141 | — | ||||||||||
Contingently Issuable Share Awards | 527,389 | — | — | 467,937 | 527,389 | — | ||||||||||
Total Potentially Dilutive Securities Excluded from the Denominator | 4,027,511 | 2,778,293 | 2,209,496 | 4,482,199 | 4,027,511 | 2,778,293 |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||
2018 | 2017 | 2016 | 2019 | 2018 | 2017 | |||||||||||||||||
Net Income | $ | 8,365 | $ | 104,940 | $ | 121,457 | ||||||||||||||||
Net (Loss) Income | $ | (5,847 | ) | $ | 8,365 | $ | 104,940 | |||||||||||||||
Change in Fair Value of Derivative Instruments | 3,343 | 3,130 | 2,449 | (4,502 | ) | 3,343 | 3,130 | |||||||||||||||
Less: Reclassification Adjustment for Change in Fair Value of Derivative Instruments Included in Net Income | (2,827 | ) | (594 | ) | (610 | ) | 1,007 | (2,827 | ) | (594 | ) | |||||||||||
Total Other Comprehensive Income | $ | 516 | $ | 2,536 | $ | 1,839 | ||||||||||||||||
Total Other Comprehensive (Loss) Income | $ | (3,495 | ) | $ | 516 | $ | 2,536 | |||||||||||||||
Comprehensive Income | 8,881 | 107,476 | 123,296 | |||||||||||||||||||
Comprehensive (Loss) Income | (9,342 | ) | 8,881 | 107,476 | ||||||||||||||||||
Less: Comprehensive Loss (Income) Applicable to Noncontrolling Interests - Common Units | 878 | (5,232 | ) | (4,567 | ) | 2,644 | 878 | (5,232 | ) | |||||||||||||
Less: Comprehensive Loss Applicable to Noncontrolling Interests - Consolidated Joint Venture | 709 | — | — | |||||||||||||||||||
Less: Comprehensive (Income) Loss Applicable to Noncontrolling Interests - Consolidated Joint Venture | (188 | ) | 709 | — | ||||||||||||||||||
Less: Preferred Distributions | (24,174 | ) | (24,169 | ) | (17,380 | ) | (24,174 | ) | (24,174 | ) | (24,169 | ) | ||||||||||
Less: Extinguishment of Issuance Costs Upon Redemption of Series B Preferred Shares | — | — | (4,021 | ) | ||||||||||||||||||
Comprehensive (Loss) Income Applicable to Common Shareholders | $ | (13,706 | ) | $ | 78,075 | $ | 97,328 | $ | (31,060 | ) | $ | (13,706 | ) | $ | 78,075 |
Shareholders' Equity | Noncontrolling Interests | Reedemable Noncontrolling Interests | Shareholders' Equity | Noncontrolling Interests | Reedemable Noncontrolling Interests | |||||||||||||||||||||||||||||||||||||||||||||||||
Common Shares | Class A Common Shares ($) | Class B Common Shares ($) | Preferred Shares | Preferred Shares ($) | Additional Paid-In Capital ($) | Accumulated Other Comprehensive Income ($) | Distributions in Excess of Net Income ($) | Total Shareholders' Equity ($) | Common Units and LTIP Units | Common Units and LTIP Units ($) | Total Equity ($) | Consolidated Joint Venture ($) | Common Shares | Class A Common Shares ($) | Class B Common Shares ($) | Preferred Shares | Preferred Shares ($) | Additional Paid-In Capital ($) | Accumulated Other Comprehensive Income ($) | Distributions in Excess of Net Income ($) | Total Shareholders' Equity ($) | Common Units and LTIP Units | Common Units and LTIP Units ($) | Total Equity ($) | Consolidated Joint Venture ($) | |||||||||||||||||||||||||||||
Balance at December 31, 2017 | 39,916,661 | 399 | — | 14,701,700 | 147 | 1,164,946 | 3,749 | (335,373 | ) | 833,868 | 3,223,366 | 54,286 | 888,154 | — | ||||||||||||||||||||||||||||||||||||||||
Cumulative Effect of Adoption of ASC 610-20 | — | — | — | — | — | — | — | 123,228 | 123,228 | — | 5,793 | 129,021 | — | |||||||||||||||||||||||||||||||||||||||||
Adjusted balance at January 1, 2018 | 39,916,661 | 399 | — | 14,701,700 | 147 | 1,164,946 | 3,749 | (212,145 | ) | 957,096 | 3,223,366 | 60,079 | 1,017,175 | — | ||||||||||||||||||||||||||||||||||||||||
Unit Conversion | 62,807 | 1 | — | — | — | 1,172 | — | — | 1,173 | (62,807 | ) | (1,173 | ) | — | — | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | 39,458,626 | 395 | — | 14,703,214 | 147 | 1,155,776 | 4,227 | (267,740 | ) | 892,805 | 3,749,665 | 62,010 | 954,815 | 2,708 | ||||||||||||||||||||||||||||||||||||||||
Repurchase of Common Shares | (635,590 | ) | (6 | ) | — | — | — | (10,827 | ) | — | — | (10,833 | ) | — | — | (10,833 | ) | — | (933,436 | ) | (9 | ) | — | — | — | (14,277 | ) | — | — | (14,286 | ) | — | — | (14,286 | ) | — | ||||||||||||||||||
Preferred Shares ATM Issuance, Net of Costs | — | — | — | 1,514 | — | (128 | ) | — | — | (128 | ) | — | — | (128 | ) | — | ||||||||||||||||||||||||||||||||||||||
Dividends and Distributions declared: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Shares ($1.12 per share) | — | — | — | — | — | — | — | (44,119 | ) | (44,119 | ) | — | — | (44,119 | ) | — | — | — | — | — | — | — | — | (43,600 | ) | (43,600 | ) | — | — | (43,600 | ) | — | ||||||||||||||||||||||
Preferred Shares | — | — | — | — | — | — | — | (24,174 | ) | (24,174 | ) | — | — | (24,174 | ) | — | — | — | — | — | — | — | — | (24,174 | ) | (24,174 | ) | — | — | (24,174 | ) | — | ||||||||||||||||||||||
Common Units ($1.12 per share) | — | — | — | — | — | — | — | — | — | — | (2,331 | ) | (2,331 | ) | — | — | — | — | — | — | — | — | — | — | — | (2,314 | ) | (2,314 | ) | — | ||||||||||||||||||||||||
LTIP Units ($1.12 per share) | — | — | — | — | — | — | — | — | — | — | (1,980 | ) | (1,980 | ) | — | — | — | — | — | — | — | — | — | — | — | (2,601 | ) | (2,601 | ) | — | ||||||||||||||||||||||||
Dividend Reinvestment Plan | 4,132 | — | — | — | — | 77 | — | — | 77 | — | — | 77 | — | 3,760 | — | — | — | — | 60 | — | — | 60 | — | — | 60 | — | ||||||||||||||||||||||||||||
Share Based Compensation: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Grants | 110,616 | 1 | — | — | — | 997 | — | — | 998 | 589,106 | — | 998 | — | 123,700 | 1 | — | — | — | 675 | — | — | 676 | 530,281 | — | 676 | — | ||||||||||||||||||||||||||||
Amortization | — | — | — | — | — | 2,247 | — | — | 2,247 | — | 8,293 | 10,540 | — | — | — | — | — | — | 3,062 | — | — | 3,062 | — | 9,693 | 12,755 | — | ||||||||||||||||||||||||||||
Equity Contribution to Consolidated Joint Venture | — | — | — | — | — | — | — | — | — | — | — | — | 3,417 | — | — | — | — | — | — | — | — | — | — | — | — | 300 | ||||||||||||||||||||||||||||
Change in Fair Value of Derivative Instruments | — | — | — | — | — | — | 478 | — | 478 | — | 38 | 516 | — | — | — | — | — | — | — | (3,217 | ) | — | (3,217 | ) | — | (278 | ) | (3,495 | ) | — | ||||||||||||||||||||||||
Adjustment to Record Noncontrolling Interest at Redemption Value | — | — | — | — | — | (2,708 | ) | — | — | (2,708 | ) | — | — | (2,708 | ) | 2,708 | — | — | — | — | — | (488 | ) | — | — | (488 | ) | — | — | (488 | ) | 488 | ||||||||||||||||||||||
Net Income (loss) | — | — | — | — | — | — | — | 12,698 | 12,698 | — | (916 | ) | 11,782 | (3,417 | ) | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | 39,458,626 | 395 | — | 14,703,214 | 147 | 1,155,776 | 4,227 | (267,740 | ) | 892,805 | 3,749,665 | 62,010 | 954,815 | 2,708 | ||||||||||||||||||||||||||||||||||||||||
Net Income (Loss) | — | — | — | — | — | — | — | (3,181 | ) | (3,181 | ) | — | (2,366 | ) | (5,547 | ) | (300 | ) | ||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 38,652,650 | 387 | — | 14,703,214 | 147 | 1,144,808 | 1,010 | (338,695 | ) | 807,657 | 4,279,946 | 64,144 | 871,801 | 3,196 |
Shareholders' Equity | Noncontrolling Interests | Shareholders' Equity | Noncontrolling Interests | Reedemable Noncontrolling Interests | ||||||||||||||||||||||||||||||||||||||||||||||||
Common Shares | Class A Common Shares ($) | Class B Common Shares ($) | Preferred Shares | Preferred Shares ($) | Additional Paid-In Capital ($) | Accumulated Other Comprehensive Income ($) | Distributions in Excess of Net Income ($) | Total Shareholders' Equity ($) | Common Units and LTIP Units | Common Units and LTIP Units ($) | Total Equity ($) | Common Shares | Class A Common Shares ($) | Class B Common Shares ($) | Preferred Shares | Preferred Shares ($) | Additional Paid-In Capital ($) | Accumulated Other Comprehensive Income ($) | Distributions in Excess of Net Income ($) | Total Shareholders' Equity ($) | Common Units and LTIP Units | Common Units and LTIP Units ($) | Total Equity ($) | Consolidated Joint Venture ($) | ||||||||||||||||||||||||||||
Balance at December 31, 2016 | 41,770,514 | 418 | — | 14,700,000 | 147 | 1,198,311 | 1,373 | (364,831 | ) | 835,418 | 2,838,546 | 44,321 | 879,739 | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2017 | 39,916,661 | 399 | — | 14,701,700 | 147 | 1,164,946 | 3,749 | (335,373 | ) | 833,868 | 3,223,366 | 54,286 | 888,154 | — | ||||||||||||||||||||||||||||||||||||||
Cumulative Effect of Adoption of ASC 610-20 | — | — | — | — | — | — | — | 123,228 | 123,228 | — | 5,793 | 129,021 | — | |||||||||||||||||||||||||||||||||||||||
Adjusted balance at January 1, 2018 | 39,916,661 | 399 | — | 14,701,700 | 147 | 1,164,946 | 3,749 | (212,145 | ) | 957,096 | 3,223,366 | 60,079 | 1,017,175 | — | ||||||||||||||||||||||||||||||||||||||
Unit Conversion | 23,964 | — | — | — | — | 392 | — | — | 392 | (23,964 | ) | (392 | ) | — | 62,807 | 1 | — | — | — | 1,172 | — | — | 1,173 | (62,807 | ) | (1,173 | ) | — | — | |||||||||||||||||||||||
Repurchase of Common Shares | (1,991,573 | ) | (20 | ) | — | — | — | (35,158 | ) | — | — | (35,178 | ) | — | — | (35,178 | ) | (635,590 | ) | (6 | ) | — | — | — | (10,827 | ) | — | — | (10,833 | ) | — | — | (10,833 | ) | — | |||||||||||||||||
Common Units Issued | — | — | — | — | — | — | — | — | — | 225,000 | 4,133 | 4,133 | ||||||||||||||||||||||||||||||||||||||||
Preferred Shares ATM Issuance, Net of Costs | — | — | — | 1,700 | — | (219 | ) | — | — | (219 | ) | (219 | ) | — | — | — | 1,514 | — | (128 | ) | — | — | (128 | ) | — | — | (128 | ) | — | |||||||||||||||||||||||
Dividends and Distributions declared: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Shares ($1.12 per share) | — | — | — | — | — | — | — | (46,241 | ) | (46,241 | ) | — | — | (46,241 | ) | — | — | — | — | — | — | — | (44,119 | ) | (44,119 | ) | — | — | (44,119 | ) | — | |||||||||||||||||||||
Preferred Shares | — | — | — | — | — | — | — | (24,169 | ) | (24,169 | ) | — | — | (24,169 | ) | — | — | — | — | — | — | — | (24,174 | ) | (24,174 | ) | — | — | (24,174 | ) | — | |||||||||||||||||||||
Common Units ($1.12 per share) | — | — | — | — | — | — | — | — | — | — | (2,270 | ) | (2,270 | ) | — | — | — | — | — | — | — | — | — | — | (2,331 | ) | (2,331 | ) | — | |||||||||||||||||||||||
LTIP Units ($1.12 per share) | — | — | — | — | — | — | — | — | — | — | (1,452 | ) | (1,452 | ) | — | — | — | — | — | — | — | — | — | — | (1,980 | ) | (1,980 | ) | — | |||||||||||||||||||||||
Dividend Reinvestment Plan | 4,425 | — | — | — | — | 81 | — | — | 81 | — | — | 81 | 4,132 | — | — | — | — | 77 | — | — | 77 | — | — | 77 | — | |||||||||||||||||||||||||||
Share Based Compensation: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Grants | 109,331 | 1 | — | — | — | 28 | — | — | 29 | 183,784 | 779 | 808 | 110,616 | 1 | — | — | — | 997 | — | — | 998 | 589,106 | — | 998 | — | |||||||||||||||||||||||||||
Amortization | — | — | — | — | — | 1,511 | — | — | 1,511 | — | 3,935 | 5,446 | — | — | — | — | — | 2,247 | — | — | 2,247 | — | 8,293 | 10,540 | — | |||||||||||||||||||||||||||
Equity Contribution to Consolidated Joint Venture | — | — | — | — | — | — | — | — | — | — | — | — | 3,417 | |||||||||||||||||||||||||||||||||||||||
Change in Fair Value of Derivative Instruments | — | — | — | — | — | — | 2,376 | — | 2,376 | — | 160 | 2,536 | — | — | — | — | — | — | 478 | — | 478 | — | 38 | 516 | — | |||||||||||||||||||||||||||
Net Income | — | — | — | — | — | — | — | 99,868 | 99,868 | — | 5,072 | 104,940 | ||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2017 | 39,916,661 | 399 | — | 14,701,700 | 147 | 1,164,946 | 3,749 | (335,373 | ) | 833,868 | 3,223,366 | 54,286 | 888,154 | |||||||||||||||||||||||||||||||||||||||
Adjustment to Record Noncontrolling Interest at Redemption Value | — | — | — | — | — | (2,708 | ) | — | — | (2,708 | ) | — | — | (2,708 | ) | 2,708 | ||||||||||||||||||||||||||||||||||||
Net Income (Loss) | — | — | — | — | — | — | — | 12,698 | 12,698 | — | (916 | ) | 11,782 | (3,417 | ) | |||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | 39,458,626 | 395 | — | 14,703,214 | 147 | 1,155,776 | 4,227 | (267,740 | ) | 892,805 | 3,749,665 | 62,010 | 954,815 | 2,708 |
Shareholders' Equity | Noncontrolling Interests | Shareholders' Equity | Noncontrolling Interests | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common Shares | Class A Common Shares ($) | Class B Common Shares ($) | Preferred Shares | Preferred Shares ($) | Additional Paid-In Capital ($) | Accumulated Other Comprehensive Loss ($) | Distributions in Excess of Net Income ($) | Total Shareholders' Equity ($) | Common Units and LTIP Units | Common Units and LTIP Units ($) | Consolidated Variable Interest Entity ($) | Total Noncontrolling Interests ($) | Total Equity ($) | Common Shares | Class A Common Shares ($) | Class B Common Shares ($) | Preferred Shares | Preferred Shares ($) | Additional Paid-In Capital ($) | Accumulated Other Comprehensive Loss ($) | Distributions in Excess of Net Income ($) | Total Shareholders' Equity ($) | Common Units and LTIP Units | Common Units and LTIP Units ($) | Total Equity ($) | |||||||||||||||||||||||||||||
Balance at December 31, 2015 | 44,457,368 | 444 | — | 7,600,000 | 76 | 1,086,259 | (466 | ) | (408,274 | ) | 678,039 | 2,319,301 | 31,876 | (1,760 | ) | 30,116 | 708,155 | |||||||||||||||||||||||||||||||||||||
Balance at December 31, 2016 | 41,770,514 | 418 | — | 14,700,000 | 147 | 1,198,311 | 1,373 | (364,831 | ) | 835,418 | 2,838,546 | 44,321 | 879,739 | |||||||||||||||||||||||||||||||||||||||||
Unit Conversion | 23,964 | — | — | — | — | 392 | — | — | 392 | (23,964 | ) | (392 | ) | — | ||||||||||||||||||||||||||||||||||||||||
Repurchase of Common Shares | (2,772,710 | ) | (27 | ) | — | — | — | (52,028 | ) | — | — | (52,055 | ) | — | — | — | — | (52,055 | ) | (1,991,573 | ) | (20 | ) | — | — | — | (35,158 | ) | — | — | (35,178 | ) | — | — | (35,178 | ) | ||||||||||||||||||
Common Units Issued | — | — | — | — | — | — | — | — | — | 225,000 | 4,430 | — | 4,430 | 4,430 | — | — | — | — | — | — | — | — | — | 225,000 | 4,133 | 4,133 | ||||||||||||||||||||||||||||
Preferred Shares ATM Issuance, Net of Costs | — | — | — | 1,700 | — | (219 | ) | — | — | (219 | ) | (219 | ) | |||||||||||||||||||||||||||||||||||||||||
Dividends and Distributions declared: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Shares ($1.12 per share) | — | — | — | — | — | — | — | (46,241 | ) | (46,241 | ) | — | — | (46,241 | ) | |||||||||||||||||||||||||||||||||||||||
Preferred Shares | — | — | — | — | — | — | — | (24,169 | ) | (24,169 | ) | — | — | (24,169 | ) | |||||||||||||||||||||||||||||||||||||||
Preferred Share Offering, Net of Costs | — | — | — | 11,700,000 | 117 | 282,467 | — | — | 282,584 | — | — | — | — | 282,584 | ||||||||||||||||||||||||||||||||||||||||
Preferred Share Redemption | — | — | — | (4,600,000 | ) | (46 | ) | (114,954 | ) | — | — | (115,000 | ) | — | — | — | — | (115,000 | ) | |||||||||||||||||||||||||||||||||||
Dividends and Distributions declared: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Units ($1.32 per share) | — | — | — | — | — | — | — | (56,157 | ) | (56,157 | ) | — | — | — | — | (56,157 | ) | |||||||||||||||||||||||||||||||||||||
Preferred Shares | — | — | — | — | — | — | — | (17,380 | ) | (17,380 | ) | — | — | — | — | (17,380 | ) | |||||||||||||||||||||||||||||||||||||
Common Units ($1.32 per share) | — | — | — | — | — | — | — | — | — | — | (2,356 | ) | — | (2,356 | ) | (2,356 | ) | |||||||||||||||||||||||||||||||||||||
LTIP Units ($1.32 per share) | — | — | — | — | — | — | — | — | — | — | (1,574 | ) | — | (1,574 | ) | (1,574 | ) | |||||||||||||||||||||||||||||||||||||
Common Units ($1.12 per share) | — | — | — | — | — | — | — | — | — | — | (2,270 | ) | (2,270 | ) | ||||||||||||||||||||||||||||||||||||||||
LTIP Units ($1.12 per share) | — | — | — | — | — | — | — | — | — | — | (1,452 | ) | (1,452 | ) | ||||||||||||||||||||||||||||||||||||||||
Dividend Reinvestment Plan | 3,518 | — | — | — | — | 63 | — | — | 63 | — | — | — | — | 63 | 4,425 | — | — | — | — | 81 | — | — | 81 | — | — | 81 | ||||||||||||||||||||||||||||
Share Based Compensation: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Grants | 82,338 | 1 | — | — | — | (398 | ) | — | — | (397 | ) | 294,245 | 1,060 | — | 1,060 | 663 | 109,331 | 1 | — | — | — | 28 | — | — | 29 | 183,784 | 779 | 808 | ||||||||||||||||||||||||||
Amortization | — | — | — | — | — | 1,417 | — | — | 1,417 | — | 5,971 | — | 5,971 | 7,388 | — | — | — | — | — | 1,511 | — | — | 1,511 | — | 3,935 | 5,446 | ||||||||||||||||||||||||||||
Change in Fair Value of Derivative Instruments | — | — | — | — | — | — | 1,839 | — | 1,839 | — | — | — | — | 1,839 | — | — | — | — | — | — | 2,376 | — | 2,376 | — | 160 | 2,536 | ||||||||||||||||||||||||||||
Exercise of Option to Acquire Noncontrolling Interest | — | — | — | — | — | (4,515 | ) | — | — | (4,515 | ) | — | — | 2,197 | 2,197 | (2,318 | ) | |||||||||||||||||||||||||||||||||||||
Net Income (Loss) | — | — | — | — | — | — | — | 116,980 | 116,980 | — | 4,914 | (437 | ) | 4,477 | 121,457 | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2016 | 41,770,514 | 418 | — | 14,700,000 | 147 | 1,198,311 | 1,373 | (364,831 | ) | 835,418 | 2,838,546 | 44,321 | — | 44,321 | 879,739 | |||||||||||||||||||||||||||||||||||||||
Net Income | — | — | — | — | — | — | — | 99,868 | 99,868 | — | 5,072 | 104,940 | ||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2017 | 39,916,661 | 399 | — | 14,701,700 | 147 | 1,164,946 | 3,749 | (335,373 | ) | 833,868 | 3,223,366 | 54,286 | 888,154 |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||
2018 | 2017 | 2016 | 2019 | 2018 | 2017 | |||||||||||||||||
Operating Activities: | ||||||||||||||||||||||
Net Income | $ | 8,365 | $ | 104,940 | $ | 121,457 | ||||||||||||||||
Net (Loss) Income | $ | (5,847 | ) | $ | 8,365 | $ | 104,940 | |||||||||||||||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||||||||||||||||||||||
Gain on Disposition of Hotel Properties, Net | (4,148 | ) | (90,350 | ) | (115,839 | ) | — | (4,148 | ) | (90,350 | ) | |||||||||||
Gain from Remeasurement of Investment in Unconsolidated Joint Ventures | — | (16,240 | ) | — | — | — | (16,240 | ) | ||||||||||||||
Property Impairment | — | 4,082 | — | — | — | 4,082 | ||||||||||||||||
(Gains from) Property Losses in Excess of Insurance Recoveries | (12,649 | ) | 4,268 | — | 12 | (12,649 | ) | 4,268 | ||||||||||||||
Lease Buyout | — | (294 | ) | 11,845 | — | — | (294 | ) | ||||||||||||||
Deferred Taxes | (144 | ) | 5,262 | (4,888 | ) | (312 | ) | (144 | ) | 5,262 | ||||||||||||
Depreciation | 88,897 | 82,004 | 74,644 | 95,982 | 88,897 | 82,004 | ||||||||||||||||
Amortization | 2,816 | 3,550 | 2,022 | 2,137 | 2,816 | 3,550 | ||||||||||||||||
Loss on Debt Extinguishment | 22 | 590 | 1,187 | 280 | 22 | 590 | ||||||||||||||||
Equity in (Income) Loss of Unconsolidated Joint Ventures | (1,084 | ) | 2,473 | 1,823 | (691 | ) | (1,084 | ) | 2,473 | |||||||||||||
Loss Recognized on Change in Fair Value of Derivative Instrument | 215 | 60 | 50 | 1,007 | 215 | 60 | ||||||||||||||||
Share Based Compensation Expense | 11,436 | 9,286 | 8,048 | 10,803 | 11,436 | 9,286 | ||||||||||||||||
Distributions from Unconsolidated Joint Ventures | 1,426 | 700 | 1,574 | 728 | 1,426 | 700 | ||||||||||||||||
Proceeds Received for Business Interruption Insurance Claims, net | 8,440 | — | — | — | 8,440 | — | ||||||||||||||||
Change in Assets and Liabilities: | ||||||||||||||||||||||
(Increase) Decrease in: | ||||||||||||||||||||||
Hotel Accounts Receivable | 1,760 | (135 | ) | 1,024 | 1,028 | 1,760 | (135 | ) | ||||||||||||||
Other Assets | (2,556 | ) | 1,072 | 1,286 | (1,476 | ) | (2,556 | ) | 1,072 | |||||||||||||
Due from Related Parties | 1,307 | 13,010 | (12,089 | ) | (2,819 | ) | 1,307 | 13,010 | ||||||||||||||
(Decrease) Increase in: | ||||||||||||||||||||||
Due to Related Parties | — | — | (8,789 | ) | ||||||||||||||||||
Accounts Payable, Accrued Expenses and Other Liabilities | 10,719 | (17,155 | ) | (1,788 | ) | 2,280 | 10,719 | (17,155 | ) | |||||||||||||
Net Cash Provided by Operating Activities | $ | 114,822 | $ | 107,123 | $ | 81,567 | $ | 103,112 | $ | 114,822 | $ | 107,123 | ||||||||||
Investing Activities: | ||||||||||||||||||||||
Purchase of Hotel Property Assets | $ | (41,230 | ) | $ | (249,369 | ) | $ | (320,739 | ) | $ | — | $ | (41,230 | ) | $ | (249,369 | ) | |||||
Deposits on Hotel Acquisitions | — | (1,000 | ) | — | — | — | (1,000 | ) | ||||||||||||||
Capital Expenditures | (65,629 | ) | (51,916 | ) | (33,267 | ) | (48,936 | ) | (65,629 | ) | (51,916 | ) | ||||||||||
Cash Paid for Hotel Development Projects | (38,754 | ) | (7,637 | ) | (952 | ) | (152 | ) | (38,754 | ) | (7,637 | ) | ||||||||||
Proceeds from Disposition of Hotel Properties | 64,880 | 196,635 | 67,430 | — | 64,880 | 196,635 | ||||||||||||||||
Contributions to Unconsolidated Joint Ventures | (1,000 | ) | — | — | (6,100 | ) | (1,000 | ) | — | |||||||||||||
Proceeds from Insurance Claims | 15,806 | — | — | — | 15,806 | — | ||||||||||||||||
Proceeds from the Sale of Joint Venture Interests | — | 11,624 | — | — | — | 11,624 | ||||||||||||||||
Proceeds from Contribution of Hotel Property Assets to Unconsolidated Joint Venture | — | — | 429,221 | |||||||||||||||||||
Repayment of Notes Receivable | — | 2,000 | — | — | — | 2,000 | ||||||||||||||||
Distributions from Unconsolidated Joint Ventures | 47,962 | — | 3,011 | 1,622 | 47,962 | — | ||||||||||||||||
Net Cash (Used in) Provided by Investing Activities | $ | (17,965 | ) | $ | (99,663 | ) | $ | 144,704 | ||||||||||||||
Net Cash Used in Investing Activities | $ | (53,566 | ) | $ | (17,965 | ) | $ | (99,663 | ) |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||
2018 | 2017 | 2016 | 2019 | 2018 | 2017 | |||||||||||||||||
Financing Activities: | ||||||||||||||||||||||
(Repayment) Borrowings Under Line of Credit, Net | $ | (6,100 | ) | $ | 16,100 | $ | (27,000 | ) | $ | 38,000 | $ | (6,100 | ) | $ | 16,100 | |||||||
Proceeds of Unsecured Term Loan Borrowing | — | 58,380 | 156,100 | — | — | 58,380 | ||||||||||||||||
Repayment of Borrowings Under Unsecured Term Loan Borrowing | (18,000 | ) | (6,100 | ) | (39,480 | ) | — | (18,000 | ) | (6,100 | ) | |||||||||||
Principal Repayment of Mortgages and Notes Payable | (1,611 | ) | (122,782 | ) | (210,379 | ) | (57,418 | ) | (1,611 | ) | (122,782 | ) | ||||||||||
Proceeds from Mortgages and Notes Payable | 28,000 | — | — | 56,469 | 28,000 | — | ||||||||||||||||
Cash Paid for Deferred Financing Costs | (409 | ) | (3,352 | ) | (2,467 | ) | (3,198 | ) | (409 | ) | (3,352 | ) | ||||||||||
Cash Paid for Debt Extinguishment | — | (374 | ) | (1,024 | ) | (210 | ) | — | (374 | ) | ||||||||||||
Proceeds from Issuance of Preferred Shares, Net | — | 43 | 282,686 | — | — | 43 | ||||||||||||||||
Redemption of Series B Preferred Shares | — | — | (115,000 | ) | ||||||||||||||||||
Repurchase of Common Shares | (10,833 | ) | (35,178 | ) | (52,055 | ) | (14,195 | ) | (10,833 | ) | (35,178 | ) | ||||||||||
Exercise of Option to Acquire Noncontrolling Interest | — | — | (2,318 | ) | ||||||||||||||||||
Dividends Paid on Common Shares | (44,176 | ) | (55,034 | ) | (48,523 | ) | (43,760 | ) | (44,176 | ) | (55,034 | ) | ||||||||||
Dividends Paid on Preferred Shares | (24,174 | ) | (23,771 | ) | (16,116 | ) | (24,173 | ) | (24,174 | ) | (23,771 | ) | ||||||||||
Distributions Paid on Common Units and LTIP Units | (4,164 | ) | (4,181 | ) | (3,217 | ) | (4,768 | ) | (4,164 | ) | (4,181 | ) | ||||||||||
Other Financing Activities | (193 | ) | (262 | ) | — | (91 | ) | (193 | ) | (262 | ) | |||||||||||
Net Cash Used in Financing Activities | $ | (81,660 | ) | $ | (176,511 | ) | $ | (78,793 | ) | $ | (53,344 | ) | $ | (81,660 | ) | $ | (176,511 | ) | ||||
Net Increase (Decrease) in Cash and Cash Equivalents | $ | 15,197 | $ | (169,051 | ) | $ | 147,478 | $ | (3,798 | ) | $ | 15,197 | $ | (169,051 | ) | |||||||
Cash, Cash Equivalents, and Restricted Cash - Beginning of Period | 25,586 | 194,637 | 47,159 | 40,783 | 25,586 | 194,637 | ||||||||||||||||
Cash, Cash Equivalents, and Restricted Cash - End of Period | $ | 40,783 | $ | 25,586 | $ | 194,637 | $ | 36,985 | $ | 40,783 | $ | 25,586 |
Joint Venture | Ownership Interest | Property | Location | Lessee/Sublessee | ||||
Consolidated Joint Ventures | ||||||||
Hersha Holding RC Owner, LLC | 85% | Ritz-Carlton | Coconut Grove, FL | Hersha Holding RC Lessee, LLC | ||||
Unconsolidated Joint Ventures | ||||||||
Cindat Hersha Owner JV, LLC | 31.2% | Hampton Inn | Herald Square, New York, NY | Cindat Hersha Lessee JV, LLC | ||||
| Hampton Inn | Chelsea, New York, NY | Cindat Hersha Lessee JV, LLC | |||||
Hampton Inn | Times Square, New York, NY | Cindat Hersha Lessee JV, LLC | ||||||
Holiday Inn Express | Times Square, New York, NY | Cindat Hersha Lessee JV, LLC | ||||||
| Candlewood Suites | Times Square, New York, NY | Cindat Hersha Lessee JV, LLC | |||||
Holiday Inn | Wall Street, New York, NY | Cindat Hersha Lessee JV, LLC | ||||||
| Holiday Inn Express | Water Street, New York, NY | Cindat Hersha Lessee JV, LLC | |||||
SB Partners, LLC | 50% | Holiday Inn Express | South Boston, MA | South Bay Sandeep, LLC | ||||
Hiren Boston, LLC | 50% | Courtyard | South Boston, MA | South Bay Boston, LLC | ||||
SB Partners Three, LLC (1) | 50% | Home2 Suites | South Boston, MA | SB Partners Three Lessee, LLC |
| Dividend Per Share | ||||||||||||||||||||
| Shares Outstanding | Year Ended December 31, | |||||||||||||||||||
Series | December 31, 2019 | December 31, 2018 | Aggregate Liquidation Preference | Distribution Rate | 2019 | 2018 | |||||||||||||||
Series C | 3,000,000 | 3,000,000 | $ | 75,000 | 6.875 | % | $ | 1.7188 | $ | 1.7188 | |||||||||||
Series D | 7,701,700 | 7,701,700 | $ | 192,543 | 6.500 | % | $ | 1.6250 | 1.6250 | ||||||||||||
Series E | 4,001,514 | 4,001,514 | $ | 100,038 | 6.500 | % | $ | 1.6250 | 1.6250 | ||||||||||||
Total | 14,703,214 | 14,703,214 |
| Dividend Per Share | ||||||||||||||||||||
| Shares Outstanding | Year Ended December 31, | |||||||||||||||||||
Series | December 31, 2018 | December 31, 2017 | Aggregate Liquidation Preference | Distribution Rate | 2018 | 2017 | |||||||||||||||
Series C | 3,000,000 | 3,000,000 | $ | 75,000 | 6.875 | % | $ | 1.7188 | $ | 1.7188 | |||||||||||
Series D | 7,701,700 | 7,701,700 | $ | 192,500 | 6.500 | % | $ | 1.6250 | 1.6250 | ||||||||||||
Series E | 4,001,514 | 4,000,000 | $ | 100,000 | 6.500 | % | $ | 1.6250 | 1.6250 | ||||||||||||
Total | 14,703,214 | 14,701,700 |
Balance as Reported at December 31, 2017 | Cumulative Effect of the Adoption of ASC 610-20 | Balance at January 1, 2018, as Adjusted | |||||||||
Investment in Unconsolidated Joint Ventures | $ | 3,569 | $ | 47,738 | $ | 51,307 | |||||
Deferred Gain on Disposition of Hotel Assets | $ | 81,284 | $ | (81,284 | ) | $ | — | ||||
Distributions in Excess of Net Income | $ | (335,373 | ) | $ | 123,228 | $ | (212,145 | ) | |||
Noncontrolling Interests | $ | 54,286 | $ | 5,793 | $ | 60,079 |
Balance as Reported at December 31, 2017 | Cumulative Effect of the Adoption of ASC 610-20 | Balance at January 1, 2018, as Adjusted | |||||||||
Investment in Unconsolidated Joint Ventures | $ | 3,569 | $ | 47,738 | $ | 51,307 | |||||
Deferred Gain on Disposition of Hotel Assets | $ | 81,284 | $ | (81,284 | ) | $ | — | ||||
Distributions in Excess of Net Income | $ | (335,373 | ) | $ | 123,228 | $ | (212,145 | ) | |||
Noncontrolling Interests | $ | 54,286 | $ | 5,793 | $ | 60,079 |
| December 31, 2019 | December 31, 2018 | |||||
| |||||||
Land | $ | 518,243 | $ | 518,243 | |||
Buildings and Improvements | 1,710,621 | 1,688,459 | |||||
Furniture, Fixtures and Equipment | 294,527 | 278,098 | |||||
Construction in Progress | 10,202 | 3,804 | |||||
| 2,533,593 | 2,488,604 | |||||
| |||||||
Less Accumulated Depreciation | (557,620 | ) | (461,945 | ) | |||
| |||||||
Total Investment in Hotel Properties | $ | 1,975,973 | $ | 2,026,659 |
| December 31, 2018 | December 31, 2017 | |||||
| |||||||
Land | $ | 518,243 | $ | 532,549 | |||
Buildings and Improvements | 1,688,459 | 1,603,655 | |||||
Furniture, Fixtures and Equipment | 278,098 | 250,922 | |||||
Construction in Progress | 3,804 | 9,503 | |||||
| 2,488,604 | 2,396,629 | |||||
| |||||||
Less Accumulated Depreciation | (461,945 | ) | (387,057 | ) | |||
| |||||||
Total Investment in Hotel Properties | $ | 2,026,659 | $ | 2,009,572 |
Hotel | Acquisition Date | Land | Buildings and Improvements | Furniture, Fixtures and Equipment | Other Intangibles | Total Purchase Price | Assumption of Debt | |||||||||||||||||||
Annapolis Waterfront Hotel, MD | 3/28/2018 | $ | — | $ | 43,251 | $ | 1,802 | $ | (3,199 | ) | * | $ | 41,854 | $ | — |
Hotel | Acquisition Date | Land | Buildings and Improvements | Furniture Fixtures and Equipment | Other Intangibles | Total Purchase Price | Assumption of Debt | |||||||||||||||||||
Mystic Marriott Hotel & Spa, Groton, CT (1) | 1/3/2017 | 1,420 | 40,440 | 7,240 | 899 | * | 49,999 | 41,333 | ||||||||||||||||||
The Ritz-Carlton, Coconut Grove, FL | 2/1/2017 | 5,185 | 30,825 | 1,064 | (291 | ) | ** | 36,783 | 3,150 | |||||||||||||||||
The Pan Pacific Hotel, Seattle, WA | 2/21/2017 | 13,079 | 59,256 | 6,665 | — | 79,000 | — | |||||||||||||||||||
Philadelphia Westin, Philadelphia, PA | 6/29/2017 | 19,154 | 103,406 | 12,024 | 367 | *** | 134,951 | — | ||||||||||||||||||
| ||||||||||||||||||||||||||
Total | $ | 38,838 | $ | 233,927 | $ | 26,993 | $ | 975 | $ | 300,733 | $ | 44,483 |
| Year Ended December 31, 2018 | |||||||
Hotel | Revenue | Net Income | ||||||
Annapolis Waterfront Hotel, MD | $ | 9,574 | $ | 1,753 |
| Year Ended December 31, 2017 | |||||||
Hotel | Revenue | Net Income (Loss) | ||||||
Mystic Marriott Hotel & Spa, Groton, CT | $ | 21,247 | $ | 1,700 | ||||
The Ritz-Carlton, Coconut Grove, FL | 13,390 | (693 | ) | |||||
The Pan Pacific Hotel, Seattle, WA | 13,128 | 493 | ||||||
Philadelphia Westin, Philadelphia, PA | 14,382 | 1,542 | ||||||
| ||||||||
Total | $ | 62,147 | $ | 3,042 |
| Year Ended December 31, 2017 | |||||||
Hotel | Revenue | Net Income (Loss) | ||||||
Mystic Marriott Hotel & Spa, Groton, CT | $ | 21,247 | $ | 1,700 | ||||
The Ritz-Carlton, Coconut Grove, FL | 13,390 | (693 | ) | |||||
The Pan Pacific Hotel, Seattle, WA | 13,128 | 493 | ||||||
Philadelphia Westin, Philadelphia, PA | 14,382 | 1,542 | ||||||
| ||||||||
Total | $ | 62,147 | $ | 3,042 |
Hotel | Acquisition Date | Disposition Date | Consideration | Gain (Loss) on Disposition | ||||||||
| ||||||||||||
Hyatt House Gaithersburg, MD | December 2006 | February 2018 | $ | 19,000 | $ | 2,441 | ||||||
Hampton Inn Pearl Street, NY | June 2014 | March 2018 | 32,400 | 926 | ||||||||
Residence Inn Tysons Corner, VA | February 2006 | October 2018 | 15,700 | 781 | ||||||||
2018 Total | $ | 4,148 | ||||||||||
| ||||||||||||
Residence Inn, Greenbelt, MD | July 2004 | January 2017 | $ | 35,000 | $ | 19,541 | ||||||
Courtyard Alexandria, VA | September 2006 | January 2017 | 27,000 | (1,123 | ) | |||||||
Hyatt House Scottsdale, AZ | December 2006 | June 2017 | 36,000 | 15,015 | ||||||||
Hyatt House Pleasant Hill, CA | December 2006 | June 2017 | 45,000 | 22,406 | ||||||||
Hyatt House Pleasanton, CA | December 2006 | June 2017 | 49,500 | 33,507 | ||||||||
Holiday Inn Express, Chester, NY | January 2007 | December 2017 | 8,400 | 1,004 | ||||||||
| ||||||||||||
2017 Total | $ | 90,350 |
Hotel | Acquisition Date | Disposition Date | Consideration | Gain (Loss) on Disposition | ||||||||
| ||||||||||||
Hyatt House Gaithersburg, MD | December 2006 | February 2018 | $ | 19,000 | $ | 2,441 | ||||||
Hampton Inn Pearl Street, NY | June 2014 | March 2018 | 32,400 | 926 | ||||||||
Residence Inn Tysons Corner, VA | February 2006 | October 2018 | 15,700 | 781 | ||||||||
2018 Total | $ | 4,148 | ||||||||||
| ||||||||||||
Residence Inn, Greenbelt, MD | July 2004 | January 2017 | $ | 35,000 | $ | 19,541 | ||||||
Courtyard Alexandria, VA | September 2006 | January 2017 | 27,000 | (1,123 | ) | |||||||
Hyatt House Scottsdale, AZ | December 2006 | June 2017 | 36,000 | 15,015 | ||||||||
Hyatt House Pleasant Hill, CA | December 2006 | June 2017 | 45,000 | 22,406 | ||||||||
Hyatt House Pleasanton, CA | December 2006 | June 2017 | 49,500 | 33,507 | ||||||||
Holiday Inn Express, Chester, NY | January 2007 | December 2017 | 8,400 | 1,004 | ||||||||
| ||||||||||||
2017 Total | $ | 90,350 | ||||||||||
Cindat Hotel Portfolio (7) | April 2005 - March 2011 | April 2016 | 543,500 | 89,892 | ||||||||
Hyatt Place, King of Prussia, PA | August 2010 | May 2016 | 13,000 | 5,375 | ||||||||
Hawthorn Suites, Franklin, MA | April 2006 | September 2016 | 8,900 | (438 | ) | |||||||
Residence Inn, Framingham, MA | March 2004 | November 2016 | 25,000 | 11,467 | ||||||||
Residence Inn, Norwood, MA | July 2006 | November 2016 | 22,000 | 9,543 | ||||||||
2016 Total | $ | 115,839 |
| December 31, 2018 | December 31, 2017 | |||||
| |||||||
Land | $ | — | $ | 2,911 | |||
Buildings and Improvements | — | 20,168 | |||||
Furniture, Fixtures and Equipment | — | 4,340 | |||||
| — | 27,419 | |||||
| |||||||
Less: Accumulated Depreciation & Amortization | — | (11,432 | ) | ||||
| |||||||
Assets Held for Sale | $ | — | $ | 15,987 |
| Year Ended December 31, | ||||||
| 2018 | 2017 | |||||
Pro Forma Total Revenues | $ | 497,686 | $ | 526,768 | |||
| |||||||
Pro Forma Net Income | 8,712 | 111,595 | |||||
Loss (Income) Allocated to Noncontrolling Interest | 1,599 | (5,491 | ) | ||||
Preferred Distributions | (24,174 | ) | (24,169 | ) | |||
Pro Forma (Loss) Income Applicable to Common Shareholders | $ | (13,863 | ) | $ | 81,935 | ||
| |||||||
Pro Forma (Loss) Income Applicable to Common Shareholders per Common Share | |||||||
Basic | $ | (0.35 | ) | $ | 1.98 | ||
Diluted | $ | (0.35 | ) | $ | 1.95 | ||
| |||||||
Weighted Average Common Shares Outstanding | |||||||
Basic | 39,383,763 | 41,423,804 | |||||
Diluted | 39,383,763 | 42,056,431 |
Percent | Percent | |||||||||||||||||||||||||
Joint Venture | Hotel Properties | Owned | December 31, 2018 | December 31, 2017 | Hotel Properties | Owned | December 31, 2019 | December 31, 2018 | ||||||||||||||||||
Cindat Hersha Owner JV, LLC | Hilton and IHG branded hotels in NYC | 31.2 | % | $ | — | $ | — | |||||||||||||||||||
Hiren Boston, LLC | Courtyard by Marriott, South Boston, MA | 50.0 | % | 1,434 | 1,879 | |||||||||||||||||||||
SB Partners, LLC | Holiday Inn Express, South Boston, MA | 50.0 | % | $ | 1,125 | $ | 1,407 | Holiday Inn Express, South Boston, MA | 50.0 | % | — | 1,125 | ||||||||||||||
Hiren Boston, LLC | Courtyard by Marriott, South Boston, MA | 50.0 | % | 1,879 | 2,162 | |||||||||||||||||||||
SB Partners Three, LLC | Home2 Suites, South Boston, MA | 50.0 | % | 1,000 | — | Home2 Suites, South Boston, MA | 50.0 | % | 7,012 | 1,000 | ||||||||||||||||
Cindat Hersha Owner JV, LLC | Hilton and IHG branded hotels in NYC | 31.2 | % | — | — | |||||||||||||||||||||
$ | 4,004 | $ | 3,569 | $ | 8,446 | $ | 4,004 |
| Year Ended December 31, | ||||||||||
| 2019 | 2018 | 2017 | ||||||||
Cindat Hersha Owner JV, LLC | $ | — | $ | — | $ | (3,717 | ) | ||||
Hiren Boston, LLC | 155 | 866 | 750 | ||||||||
SB Partners, LLC | 626 | 218 | 494 | ||||||||
SB Partners Three, LLC | (90 | ) | — | — | |||||||
Income (Loss) from Unconsolidated Joint Venture Investments | $ | 691 | $ | 1,084 | $ | (2,473 | ) |
| Year Ended December 31, | ||||||||||
| 2018 | 2017 | 2016 | ||||||||
SB Partners, LLC | $ | 218 | $ | 494 | $ | 618 | |||||
Hiren Boston, LLC | 866 | 750 | 839 | ||||||||
SB Partners Three, LLC | — | — | — | ||||||||
Cindat Hersha Owner JV, LLC | — | (3,717 | ) | (137 | ) | ||||||
Mystic Partners, LLC | — | — | (3,143 | ) | |||||||
Income (Loss) from Unconsolidated Joint Venture Investments | $ | 1,084 | $ | (2,473 | ) | $ | (1,823 | ) |
Balance Sheets | ||||||||||||||
December 31, 2018 | December 31, 2017 | December 31, 2019 | December 31, 2018 | |||||||||||
Assets | ||||||||||||||
Investment in Hotel Properties, Net | $ | 569,609 | $ | 568,724 | $ | 579,287 | $ | 569,609 | ||||||
Other Assets | 30,088 | 46,158 | 33,891 | 30,088 | ||||||||||
Total Assets | $ | 599,697 | $ | 614,882 | $ | 613,178 | $ | 599,697 | ||||||
Liabilities and Equity | ||||||||||||||
Mortgages and Notes Payable | $ | 422,205 | $ | 359,121 | $ | 430,282 | $ | 422,205 | ||||||
Other Liabilities | 7,478 | 7,901 | 19,185 | 7,478 | ||||||||||
Equity: | ||||||||||||||
Hersha Hospitality Trust | 15,554 | 88,936 | 9,588 | 15,554 | ||||||||||
Joint Venture Partner(s) | 155,053 | 159,182 | ||||||||||||
Joint Venture Partners | 154,998 | 155,053 | ||||||||||||
Accumulated Other Comprehensive Loss | (593 | ) | (258 | ) | (875 | ) | (593 | ) | ||||||
Total Equity | 170,014 | 247,860 | 163,711 | 170,014 | ||||||||||
Total Liabilities and Equity | $ | 599,697 | $ | 614,882 | $ | 613,178 | $ | 599,697 |
Statements of Operations | |||||||||||
| Year Ended December 31, | ||||||||||
| 2019 | 2018 | 2017 | ||||||||
Room Revenue | $ | 94,384 | $ | 98,123 | $ | 93,254 | |||||
Other Revenue | 2,408 | 2,350 | 1,965 | ||||||||
Operating Expenses | (46,175 | ) | (46,319 | ) | (43,245 | ) | |||||
Lease Expense | (693 | ) | (658 | ) | (691 | ) | |||||
Property Taxes and Insurance | (12,477 | ) | (11,882 | ) | (11,274 | ) | |||||
General and Administrative | (5,783 | ) | (5,489 | ) | (5,179 | ) | |||||
Depreciation and Amortization | (14,947 | ) | (13,403 | ) | (12,331 | ) | |||||
Interest Expense | (28,072 | ) | (26,289 | ) | (20,965 | ) | |||||
Loss on Debt Extinguishment | — | (7,270 | ) | — | |||||||
| |||||||||||
Net (Loss) Income | $ | (11,355 | ) | $ | (10,837 | ) | $ | 1,534 |
Statements of Operations | |||||||||||
| Year Ended December 31, | ||||||||||
| 2018 | 2017 | 2016 | ||||||||
Room Revenue | $ | 98,123 | $ | 93,254 | $ | 118,645 | |||||
Other Revenue | 2,350 | 1,965 | 24,424 | ||||||||
Operating Expenses | (46,319 | ) | (43,245 | ) | (80,091 | ) | |||||
Lease Expense | (658 | ) | (691 | ) | (1,143 | ) | |||||
Property Taxes and Insurance | (11,882 | ) | (11,274 | ) | (9,512 | ) | |||||
General and Administrative | (5,489 | ) | (5,179 | ) | (8,976 | ) | |||||
Depreciation and Amortization | (13,403 | ) | (12,331 | ) | (13,286 | ) | |||||
Interest Expense | (26,289 | ) | (20,965 | ) | (18,568 | ) | |||||
Loss on Debt Extinguishment | (7,270 | ) | — | — | |||||||
Acquisition Costs | — | — | (1,468 | ) | |||||||
Other Income | — | — | 2,466 | ||||||||
Loss Allocated to Noncontrolling Interests | — | — | (46 | ) | |||||||
| |||||||||||
Net (Loss) Income | $ | (10,837 | ) | $ | 1,534 | $ | 12,445 |
December 31, 2018 | December 31, 2017 | December 31, 2019 | December 31, 2018 | |||||||||||
Our share of equity recorded on the joint ventures' financial statements | $ | 15,554 | $ | 88,936 | $ | 9,588 | $ | 15,554 | ||||||
Adjustment to reconcile our share of equity recorded on the joint ventures' financial statements to our investment in unconsolidated joint ventures(1) | (11,550 | ) | (85,367 | ) | (1,142 | ) | (11,550 | ) | ||||||
Investment in Unconsolidated Joint Ventures | $ | 4,004 | $ | 3,569 | $ | 8,446 | $ | 4,004 |
(1) | Adjustment to reconcile our share of equity recorded on the joint ventures' financial statements to our investment in unconsolidated joint ventures consists of the following: |
| December 31, 2019 | December 31, 2018 | |||||
| |||||||
Derivative Asset | $ | 2,514 | $ | 5,307 | |||
Deferred Financing Costs | 1,330 | 1,845 | |||||
Prepaid Expenses | 11,279 | 10,695 | |||||
Investment in Statutory Trusts | 1,548 | 1,548 | |||||
Investment in Non-Hotel Property and Inventories | 2,987 | 3,349 | |||||
Deposits with Unaffiliated Third Parties | 2,577 | 2,866 | |||||
Deferred Tax Asset, Net of Valuation Allowance of $497 | 11,390 | 11,078 | |||||
Property Insurance Receivable | 1,788 | — | |||||
Other | 2,764 | 3,317 | |||||
| $ | 38,177 | $ | 40,005 |
| December 31, 2018 | December 31, 2017 | |||||
| |||||||
Derivative Asset | $ | 5,307 | $ | 4,282 | |||
Deferred Financing Costs | 1,845 | 2,360 | |||||
Prepaid Expenses | 10,695 | 10,580 | |||||
Investment in Statutory Trusts | 1,548 | 1,548 | |||||
Investment in Non-Hotel Property and Inventories | 3,349 | 3,948 | |||||
Deposits with Unaffiliated Third Parties | 2,866 | 2,361 | |||||
Deferred Tax Asset, Net of Valuation Allowance of $497 | 11,078 | 10,934 | |||||
Property Insurance Receivable | — | 10,023 | |||||
Other | 3,317 | 3,877 | |||||
| $ | 40,005 | $ | 49,913 |
| December 31, 2019 | December 31, 2018 | |||||
Mortgage Indebtedness | $ | 333,948 | $ | 334,897 | |||
Net Unamortized Premium | 821 | 1,304 | |||||
Net Unamortized Deferred Financing Costs | (2,489 | ) | (2,056 | ) | |||
Mortgages Payable | $ | 332,280 | $ | 334,145 |
| December 31, 2018 | December 31, 2017 | |||||
Mortgage Indebtedness | $ | 334,897 | $ | 308,508 | |||
Net Unamortized Premium | 1,304 | 1,802 | |||||
Net Unamortized Deferred Financing Costs | (2,056 | ) | (2,627 | ) | |||
Mortgages Payable | $ | 334,145 | $ | 307,683 |
- Courtyard by Marriott Brookline, Brookline, MA | - Hampton Inn, Washington, DC |
- Holiday Inn Express Cambridge, Cambridge, MA | - Ritz-Carlton Georgetown, Washington, DC |
- The Envoy Boston Seaport, Boston, MA | - Hilton Garden Inn, M Street, Washington, DC |
- The Boxer, Boston, MA | - Residence Inn Miami Coconut Grove, Coconut Grove, FL |
- Hampton Inn Seaport, Seaport, New York, NY | - The Winter Haven Hotel Miami Beach, Miami, FL |
- The Duane Street Hotel, New York, NY | - The Blue Moon Hotel Miami Beach, Miami, FL |
- Holiday Inn Express Chelsea, 29th Street, New York, NY | - Cadillac Hotel & Beach Club, Miami, FL |
- Gate Hotel JFK Airport, New York, NY | - The Parrot Key Hotel & Villas, Key West, FL |
- Hilton Garden Inn JFK Airport, New York, NY | - TownePlace Suites, Sunnyvale, CA |
- NU Hotel, Brooklyn, New York, NY | - The Ambrose Hotel, Santa Monica, CA |
- Hyatt House White Plains, White Plains, NY | - Courtyard by Marriott Downtown San Diego, San Diego, CA |
- Hampton Inn Center City/ Convention Center, Philadelphia, PA | - The Pan Pacific Hotel Seattle, Seattle, WA |
- The Rittenhouse, Philadelphia, PA | - Mystic Marriott Hotel & Spa, Groton, CT |
- Philadelphia Westin, Philadelphia, PA | - Sheraton Wilmington South, New Castle, DE |
| Outstanding Balance | |||||||||
Borrowing | Spread | December 31, 2019 | December 31, 2018 | |||||||
Line of Credit | 1.50% to 2.25% | $ | 48,000 | $ | 10,000 | |||||
Unsecured Term Loan: | ||||||||||
First Term Loan | 1.45% to 2.20% | 207,000 | 207,000 | |||||||
Second Term Loan | 1.35% to 2.00% | 300,000 | 300,000 | |||||||
Third Term Loan | 1.45% to 2.20% | 193,900 | 193,900 | |||||||
Deferred Loan Costs | $ | (3,717 | ) | (2,698 | ) | |||||
Total Unsecured Term Loan | $ | 697,183 | $ | 698,202 |
| Outstanding Balance | |||||||||
Borrowing | Spread | December 31, 2018 | December 31, 2017 | |||||||
Line of Credit | 1.50% to 2.45% | $ | 10,000 | $ | 16,100 | |||||
Unsecured Term Loan: | ||||||||||
First Term Loan | 1.45% to 2.20% | 207,000 | 225,000 | |||||||
Second Term Loan | 1.50% to 2.25% | 300,000 | 300,000 | |||||||
Third Term Loan | 1.45% to 2.20% | 193,900 | 193,900 | |||||||
Deferred Loan Costs | $ | (2,698 | ) | (3,451 | ) | |||||
Total Unsecured Term Loan | $ | 698,202 | $ | 715,449 |
• | a fixed charge coverage ratio of not less than 1.50 to 1.00, |
• | a maximum leverage ratio of not more than 60%; and |
• | a maximum secured debt leverage ratio of 45% |
Year Ending December 31, | Amount | |||
2020 | $ | 1,699 | ||
2021 | 325,756 | |||
2022 | 253,289 | |||
2023 | 77,990 | |||
2024 | 386,283 | |||
Thereafter | 89,379 | |||
Net Unamortized Premium | 821 | |||
| $ | 1,135,217 |
Year Ending December 31, | Amount | |||
2019 | $ | 102,370 | ||
2020 | 346,022 | |||
2021 | 277,731 | |||
2022 | 218,902 | |||
2023 | 21,929 | |||
Thereafter | 130,390 | |||
Net Unamortized Premium | 1,304 | |||
| $ | 1,098,648 |
Year Ended December 31, 2019 | ||||||||||||
Ground Lease | Office Lease | Total | ||||||||||
Operating lease costs | $ | 4,195 | $ | 483 | $ | 4,678 | ||||||
Variable lease costs | 386 | 308 | 694 | |||||||||
Total lease costs | $ | 4,581 | $ | 791 | $ | 5,372 |
December 31, 2019 | ||||
Cash paid from operating cash flows for operating leases | $ | 4,851 | ||
Weighted average remaining lease term in years | 64.2 | |||
Weighted average discount rate | 7.86 | % |
Amount | |||
2020 | $ | 4,933 | |
2021 | 5,001 | ||
2022 | 4,463 | ||
2023 | 4,445 | ||
2024 | 4,473 | ||
Thereafter | 288,978 | ||
Total undiscounted lease payments | 312,293 | ||
Less imputed interest | (257,745 | ) | |
Total lease liability | $ | 54,548 |
Year Ending December 31, | Amount | |||
2019 | $ | 4,585 | ||
2020 | 4,638 | |||
2021 | 4,705 | |||
2022 | 4,167 | |||
2023 | 4,149 | |||
Thereafter | 270,978 | |||
$ | 293,222 |
Year Ending December 31, | Amount | |||
| ||||
2019 | $ | 4,585 | ||
2020 | 4,638 | |||
2021 | 4,705 | |||
2022 | 4,167 | |||
2023 | 4,149 | |||
Thereafter | 270,978 | |||
| $ | 293,222 |
Estimated Fair Value | Estimated Fair Value | ||||||||||||||||||||||||||||
Asset / (Liability) Balance | Asset / (Liability) Balance | ||||||||||||||||||||||||||||
Hedged Debt | Type | Strike Rate | Index | Effective Date | Derivative Contract Maturity Date | Notional Amount | December 31, 2018 | December 31, 2017 | Type | Strike Rate | Index | Effective Date | Derivative Contract Maturity Date | Notional Amount | December 31, 2019 | December 31, 2018 | |||||||||||||
Term Loan Instruments: | |||||||||||||||||||||||||||||
Unsecured Credit Facility | Swap | 1.011 | % | 1-Month LIBOR + 2.20% | November 3, 2016 | October 3, 2019 | 150,000 | $ | 1,741 | $ | 2,362 | Swap | 1.011 | % | 1-Month LIBOR + 2.20% | November 3, 2016 | October 3, 2019 | $ | 150,000 | $ | — | $ | 1,741 | ||||||
Unsecured Credit Facility (1) | Swap | 1.694 | % | 1-Month LIBOR + 2.20% | April 3, 2017 | September 3, 2019 | 50,000 | — | 320 | ||||||||||||||||||||
Unsecured Credit Facility | Swap | 2.654 | % | 1-Month LIBOR + 2.20% | January 10, 2019 | September 3, 2019 | 103,500 | — | (314 | ) | |||||||||||||||||||
Unsecured Credit Facility (3) | Swap | 2.654 | % | 1-Month LIBOR + 2.20% | January 10, 2019 | September 3, 2019 | 103,500 | — | (315 | ) | |||||||||||||||||||
Unsecured Credit Facility (4) | Swap | 1.866 | % | 1-Month LIBOR + 2.25% | August 10, 2017 | September 10, 2019 | 300,000 | — | 2,287 | ||||||||||||||||||||
Unsecured Credit Facility | Swap | 1.694 | % | 1-Month LIBOR + 2.20% | April 3, 2017 | October 3, 2019 | 50,000 | 320 | 187 | Swap | 1.341 | % | 1-Month LIBOR + 2.20% | October 3, 2019 | August 2, 2021 | 150,000 | 539 | — | |||||||||||
Unsecured Credit Facility | Swap | 1.866 | % | 1-Month LIBOR + 2.25% | August 10, 2017 | August 10, 2020 | 300,000 | 2,287 | 1,100 | ||||||||||||||||||||
Unsecured Credit Facility | Swap | 2.654 | % | 1-Month LIBOR + 2.20% | January 10, 2019 | January 10, 2021 | 103,500 | (314 | ) | — | |||||||||||||||||||
Unsecured Credit Facility | Swap | 2.654 | % | 1-Month LIBOR + 2.20% | January 10, 2019 | January 10, 2021 | 103,500 | (315 | ) | — | |||||||||||||||||||
Unsecured Credit Facility (1) | Swap | 1.316 | % | 1-Month LIBOR + 2.20% | September 3, 2019 | August 2, 2021 | 43,900 | 175 | — | ||||||||||||||||||||
Unsecured Credit Facility (2) | Swap | 1.824 | % | 1-Month LIBOR + 2.20% | September 3, 2019 | August 10, 2022 | 103,500 | (718 | ) | — | |||||||||||||||||||
Unsecured Credit Facility (3) | Swap | 1.824 | % | 1-Month LIBOR + 2.20% | September 3, 2019 | August 10, 2022 | 103,500 | (718 | ) | — | |||||||||||||||||||
Unsecured Credit Facility (4) | Swap | 1.460 | % | 1-Month LIBOR + 2.00% | September 10, 2019 | September 10, 2024 | 300,000 | 1,776 | — | ||||||||||||||||||||
Mortgages: | |||||||||||||||||||||||||||||
Hyatt, Union Square, New York, NY | Cap | 3.000 | % | 1-Month LIBOR + 2.30% | June 10, 2015 | June 10, 2019 | 55,750 | — | 3 | ||||||||||||||||||||
Hilton Garden Inn 52nd Street, New York, NY | Swap | 1.600 | % | 1-Month LIBOR + 2.90% | February 24, 2017 | February 24, 2020 | 44,325 | 479 | 340 | Swap | 1.600 | % | 1-Month LIBOR + 2.90% | February 24, 2017 | February 24, 2020 | 44,325 | — | 479 | |||||||||||
Courtyard, LA Westside, Culver City, CA | Swap | 1.683 | % | 1-Month LIBOR + 2.75% | August 1, 2017 | August 1, 2020 | 35,000 | 458 | 290 | Swap | 1.683 | % | 1-Month LIBOR + 2.75% | August 1, 2017 | August 1, 2020 | 35,000 | (8 | ) | 458 | ||||||||||
Annapolis Waterfront Hotel, MD | Cap | 3.350 | % | 1-Month LIBOR + 2.65% | May 1, 2018 | May 1, 2021 | 28,000 | 22 | — | Cap | 3.350 | % | 1-Month LIBOR + 2.65% | May 1, 2018 | May 1, 2021 | 28,000 | — | 22 | |||||||||||
Hyatt, Union Square, New York, NY | Swap | 1.870 | % | 1-Month LIBOR + 2.30% | June 7, 2019 | June 7, 2023 | 56,000 | (556 | ) | — | |||||||||||||||||||
Hilton Garden Inn Tribeca, New York, NY | Swap | 1.768 | % | 1-Month LIBOR + 2.25% | July 25, 2019 | July 25, 2024 | 22,725 | (169 | ) | — | |||||||||||||||||||
Hilton Garden Inn Tribeca, New York, NY | Swap | 1.768 | % | 1-Month LIBOR + 2.25% | July 25, 2019 | July 25, 2024 | 22,725 | (169 | ) | — | |||||||||||||||||||
Hilton Garden Inn 52nd Street, New York, NY | Swap | 1.540 | % | 1-Month LIBOR + 2.30% | December 4, 2019 | December 4, 2022 | 44,325 | 23 | — | ||||||||||||||||||||
$ | 175 | $ | 4,678 | ||||||||||||||||||||||||||
$ | 4,678 | $ | 4,282 |
| Units Vested | Unearned Compensation | |||||||||||||||||||||||
Issuance Date | Weighted Average Share Price | LTIP Units Issued | Vesting Period | Vesting Schedule | December 31, 2018 | December 31, 2017 | December 31, 2018 | December 31, 2017 | |||||||||||||||||
March 28, 2018 | |||||||||||||||||||||||||
(2017 Annual EIP) (2017 ACIP) | $ | 17.91 | 564,434 | 3 years | 25%/year (1)(2) | 144,216 | — | $ | 2,875 | $ | — | ||||||||||||||
March 28, 2017 | |||||||||||||||||||||||||
(2016 Annual EIP) | 18.53 | 122,727 | 3 years | 25%/year (1) | 92,042 | 137,544 | 152 | 510 | |||||||||||||||||
March 30, 2016 | |||||||||||||||||||||||||
(2015 Annual EIP) | 21.11 | 183,396 | 3 years | 25%/year (1) | 183,396 | 128,832 | — | 258 | |||||||||||||||||
| 870,557 | 419,654 | 266,376 | $ | 3,027 | $ | 768 |
| Units Vested | Unearned Compensation | |||||||||||||||||||||||
Compensation Committee Approval Date | Weighted Average Share Price | LTIP Units Issued | LTIP Issuance Date | Performance Period | December 31, 2018 | December 31, 2017 | December 31, 2018 | December 31, 2017 | |||||||||||||||||
March 8, 2018 | |||||||||||||||||||||||||
(2018 Multi-Year EIP) | $ | 11.06 | — | N/A | 1/1/2018 to 12/31/2020 | — | — | $ | 1,306 | $ | — | ||||||||||||||
March 10, 2017 | |||||||||||||||||||||||||
(2017 Multi-Year EIP) | 9.25 | — | N/A | 1/1/2017 to 12/31/2019 | — | — | 598 | 898 | |||||||||||||||||
March 17, 2016 | |||||||||||||||||||||||||
(2016 Multi-Year EIP) | 11.25 | — | N/A | 1/1/2016 to 12/31/2018 | — | — | 296 | 592 | |||||||||||||||||
March 18, 2015 | |||||||||||||||||||||||||
(2015 Multi-Year EIP) | 10.06 | 24,672 | N/A | 1/1/2015 to 12/31/2017 | 24,672 | — | — | 198 | |||||||||||||||||
| 24,672 | 24,672 | — | $ | 2,200 | $ | 1,688 |
| Shares Vested | Unearned Compensation | |||||||||||||||||||||
Original Year of Issuance Date | Shares Issued | Weighted Average Share Price | Vesting Period | Vesting Schedule | December 31, 2018 | December 31, 2017 | December 31, 2018 | December 31, 2017 | |||||||||||||||
2018 | 40,451 | 17.91-22.65 | 1 - 4 years | 25-100%/year | 2,189 | — | $ | 515 | $ | — | |||||||||||||
2017 | 41,895 | 18.47-18.53 | 2 years | 50% /year | 24,111 | 885 | 174 | 515 | |||||||||||||||
2016 | 29,294 | 18.02-21.11 | 2 years | 50% /year | 29,294 | 18,160 | — | 84 | |||||||||||||||
2015 | 15,703 | 28.09 | 2-4 years | 25-50% /year | 14,469 | 20,815 | 14 | 49 | |||||||||||||||
Total | 86,892 | 70,063 | 39,860 | $ | 703 | $ | 648 |
| Unearned Compensation | ||||||||||||||||||
Original Issuance Date | Shares Issued | Share Price on Date of Grant | Vesting Period | Vesting Schedule | December 31, 2018 | December 31, 2017 | |||||||||||||
December 29, 2018 | 10,863 | $ | 17.54 | 12 months | 100% | $ | 191 | $ | — | ||||||||||
December 30, 2017 | 11,587 | $ | 17.40 | 12 months | 100% | — | 202 | ||||||||||||
Total | 22,450 | $ | 191 | $ | 202 |
| Shares Vested | Unearned Compensation | |||||||||||||||||||||||
Original Issuance Date | Weighted Average Share Price | Shares Issued | Vesting Period | Vesting Schedule | December 31, 2018 | December 31, 2017 | December 31, 2018 | December 31, 2017 | |||||||||||||||||
December 31, 2018 | $ | 17.54 | 9,000 | 3 years | 33% /year | — | — | $ | 158 | $ | — | ||||||||||||||
December 29, 2017 | 17.40 | 9,000 | 3 years | 33% /year | 3,000 | — | 104 | 157 | |||||||||||||||||
December 30, 2016 | 21.50 | 5,000 | 3 years | 33% /year | 3,335 | 1,670 | 36 | 72 | |||||||||||||||||
March 30, 2016 | 21.11 | 2,500 | 3 years | 33% /year | 2,500 | 1,670 | — | 18 | |||||||||||||||||
| 8,835 | 3,340 | $ | 298 | $ | 247 |
LTIP Unit Awards | Restricted Share Awards | Share Awards | |||||||||||||||||||
Number of Units | Weighted Average Grant Date Fair Value | Number of Restricted Shares | Weighted Average Grant Date Fair Value | Number of Shares | Weighted Average Grant Date Fair Value | ||||||||||||||||
Unvested Balance as of January 1, 2017 | 210,209 | $ | 22.21 | 54,761 | $ | 21.10 | — | ||||||||||||||
Granted | 183,784 | 18.53 | 79,712 | 18.21 | 32,674 | $ | 18.16 | ||||||||||||||
Vested | (286,776 | ) | 20.82 | (44,585 | ) | 21.01 | (32,674 | ) | 18.16 | ||||||||||||
Forfeited | — | N/A | (3,055 | ) | 18.49 | — | |||||||||||||||
Unvested Balance as of December 31, 2017 | 107,217 | 19.63 | 86,833 | 18.58 | — | ||||||||||||||||
Granted | 589,106 | 17.91 | 76,314 | 19.56 | 34,752 | 19.64 | |||||||||||||||
Vested | (245,420 | ) | 18.59 | (70,713 | ) | 18.38 | (34,752 | ) | 19.64 | ||||||||||||
Forfeited | — | N/A | (575 | ) | 18.04 | — | |||||||||||||||
Unvested Balance as of December 31, 2018 | 450,903 | 17.95 | 91,859 | 19.56 | — | ||||||||||||||||
Granted | 530,281 | 18.00 | 83,805 | 16.40 | 42,533 | 16.01 | |||||||||||||||
Vested | (539,983 | ) | 17.97 | (80,924 | ) | 19.11 | (42,533 | ) | 16.01 | ||||||||||||
Forfeited | — | N/A | (2,638 | ) | 19.78 | — | |||||||||||||||
Unvested Balance as of December 31, 2019 | 441,201 | 17.99 | 92,102 | 17.07 | — |
| Shares Vested | Unearned Compensation | |||||||||||||||||||||||
Original Issuance Date | Shares Issued | Share Price on Date of Grant | Vesting Period | Vesting Schedule | December 31, 2018 | December 31, 2017 | December 31, 2018 | December 31, 2017 | |||||||||||||||||
March 28, 2018 | 14,325 | $ | 17.91 | 2 | 50% /year | 7,274 | — | $ | 126 | $ | — | ||||||||||||||
March 30, 2017 | 14,925 | $ | 18.53 | 2 | 50% /year | 14,925 | 7,625 | — | 135 | ||||||||||||||||
Total | 29,250 | 22,199 | 7,625 | $ | 126 | $ | 135 |
Share Based Compensation Expense | Unearned Compensation | |||||||||||||||||||
For the Year Ended | As of | |||||||||||||||||||
12/31/2019 | 12/31/2018 | 12/31/2017 | 12/31/2019 | 12/31/2018 | ||||||||||||||||
Issued Awards | ||||||||||||||||||||
LTIP Unit Awards | 5,646 | 4,120 | 2,486 | 2,878 | 3,027 | |||||||||||||||
Restricted Share Awards | 1,495 | 1,443 | 1,033 | 1,051 | 1,318 | |||||||||||||||
Share Awards | 680 | 680 | 593 | — | — | |||||||||||||||
Unissued Awards | ||||||||||||||||||||
Market Based | 1,467 | 1,120 | 1,002 | 2,739 | 2,200 | |||||||||||||||
Performance Based | 1,515 | 4,073 | 4,172 | — | — | |||||||||||||||
Total | $ | 10,803 | $ | 11,436 | $ | 9,286 | $ | 6,668 | $ | 6,545 |
2020 | 2021 | 2022 | 2023 | |||||||||
LTIP Unit Awards | 376,614 | 64,587 | — | — | ||||||||
Restricted Share Awards | 68,486 | 19,431 | 3,654 | 531 | ||||||||
445,100 | 84,018 | 3,654 | 531 | |||||||||
Twelve Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||
2018 | 2017 | 2016 | 2019 | 2018 | 2017 | |||||||||||||||||
NUMERATOR: | ||||||||||||||||||||||
Basic and Diluted* | ||||||||||||||||||||||
Net Income | $ | 8,365 | $ | 104,940 | $ | 121,457 | ||||||||||||||||
Income allocated to Noncontrolling Interests | 1,625 | (5,072 | ) | (4,477 | ) | |||||||||||||||||
Net (Loss) Income | $ | (5,847 | ) | $ | 8,365 | $ | 104,940 | |||||||||||||||
Loss (Income) allocated to Noncontrolling Interests | 2,178 | 1,625 | (5,072 | ) | ||||||||||||||||||
Distributions to Preferred Shareholders | (24,174 | ) | (24,169 | ) | (17,380 | ) | (24,174 | ) | (24,174 | ) | (24,169 | ) | ||||||||||
Dividends Paid on Unvested Restricted Shares and LTIP Units | (740 | ) | (341 | ) | (503 | ) | (981 | ) | (740 | ) | (341 | ) | ||||||||||
Extinguishment of Issuance Costs Upon Redemption of Series B Preferred Shares | — | — | (4,021 | ) | — | — | — | |||||||||||||||
Net (Loss) Income from Continuing Operations attributable to Common Shareholders | $ | (14,924 | ) | $ | 75,358 | $ | 95,076 | $ | (28,824 | ) | $ | (14,924 | ) | $ | 75,358 | |||||||
DENOMINATOR: | ||||||||||||||||||||||
Weighted average number of common shares - basic | 39,383,763 | 41,423,804 | 42,957,199 | 38,907,894 | 39,383,763 | 41,423,804 | ||||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||||
Restricted Stock Awards and LTIP Units (unvested) | — | 216,225 | 278,588 | — | — | 216,225 | ||||||||||||||||
Contingently Issued Shares and Units | — | 416,402 | 294,944 | — | — | 416,402 | ||||||||||||||||
Weighted average number of common shares - diluted | 39,383,763 | 42,056,431 | 43,530,731 | 38,907,894 | 39,383,763 | 42,056,431 |
* | Income (loss) allocated to noncontrolling interest in HHLP has been excluded from the numerator and Common Units and Vested LTIP Units have been omitted from the denominator for the purpose of computing diluted earnings per share since including these amounts in the numerator and denominator would have no impact. In addition, potentially dilutive common shares, if any, have been excluded from the denominator if they are anti-dilutive to income (loss) applicable to common shareholders. |
| 2019 | 2018 | 2017 | ||||||||
Common Shares issued as part of the Dividend Reinvestment Plan | $ | 60 | $ | 77 | $ | 81 | |||||
Acquisition of hotel properties: | |||||||||||
Assets acquired through joint venture assignment and assumption | — | — | 49,999 | ||||||||
Debt assumed, including premium | — | — | 44,483 | ||||||||
Deposit paid in prior period towards acquisition which closed in current period | — | 1,000 | — | ||||||||
Conversion of note payable and accrued interest to Non-Controlling Interest | — | 3,387 | — | ||||||||
Conversion of Common Units to Common Shares | — | 1,173 | 392 | ||||||||
Issuance of share based payments | 12,924 | 13,661 | 9,572 | ||||||||
Accrued payables for fixed assets placed into service | 2,506 | 2,912 | 3,403 | ||||||||
Cumulative Effect on Equity from the Adoption of ASC Subtopic 610-20 | — | 129,021 | — | ||||||||
Adjustment to Record Non-Controlling Interest at Redemption Value | 488 | 2,708 | — | ||||||||
Adjustment to Record Right of Use Asset & Lease Liability | 55,515 | — | — | ||||||||
Amortization related to Right of Use Asset & Lease Liability | 967 | — | — |
| 2018 | 2017 | 2016 | ||||||||
Common Shares issued as part of the Dividend Reinvestment Plan | $ | 77 | $ | 81 | $ | 63 | |||||
Acquisition of hotel properties: | |||||||||||
Assets acquired through joint venture assignment and assumption | — | 49,999 | — | ||||||||
Debt assumed, including premium | — | 44,483 | 55,350 | ||||||||
Deposit paid in prior period towards acquisition which closed in current period | 1,000 | — | 5,000 | ||||||||
Deferred Tax Liability | — | — | 3,281 | ||||||||
Conversion of note payable and accrued interest to Non-Controlling Interest | 3,387 | — | — | ||||||||
Conversion of Common Units to Common Shares | 1,173 | 392 | — | ||||||||
Issuance of share based payments | 13,661 | 9,572 | 11,272 | ||||||||
Accrued payables for fixed assets placed into service | 2,912 | 3,403 | 1,689 | ||||||||
Contribution of fixed assets to joint venture | — | — | 264,658 | ||||||||
Cumulative Effect on Equity from the Adoption of ASC Subtopic 610-20 | 129,021 | — | — | ||||||||
Adjustment to Record Non-Controlling Interest at Redemption Value | 2,708 | — | — |
2019 | 2018 | 2017 | |||||||
Cash and cash equivalents | $ | 27,012 | $ | 32,598 | $ | 17,945 | |||
Escrowed cash | 9,973 | 8,185 | 7,641 | ||||||
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows | $ | 36,985 | $ | 40,783 | $ | 25,586 |
2018 | 2017 | 2016 | |||||||
Cash and cash equivalents | $ | 32,598 | $ | 17,945 | $ | 185,644 | |||
Escrowed cash | 8,185 | 7,641 | 8,993 | ||||||
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows | $ | 40,783 | $ | 25,586 | $ | 194,637 |
| For the year ended December 31, | ||||||||||
| 2019 | 2018 | 2017 | ||||||||
Statutory federal income tax provision | $ | (1,208 | ) | $ | 1,813 | $ | 37,469 | ||||
Adjustment for nontaxable income for Hersha Hospitality Trust | 1,419 | (1,269 | ) | (37,670 | ) | ||||||
Remeasurement of net deferred tax asset - Tax Cuts & Jobs Act | — | — | 4,601 | ||||||||
State income taxes, net of federal income tax effect | 456 | 32 | 338 | ||||||||
Non-deductible expenses, tax credits, and other, net | (575 | ) | (309 | ) | 524 | ||||||
| |||||||||||
Total income tax expense (benefit) | $ | 92 | $ | 267 | $ | 5,262 |
| For the year ended December 31, | ||||||||||
| 2018 | 2017 | 2016 | ||||||||
Statutory federal income tax provision | $ | 1,813 | $ | 37,469 | $ | 39,633 | |||||
Adjustment for nontaxable income for Hersha Hospitality Trust | (1,269 | ) | (37,670 | ) | (44,078 | ) | |||||
Remeasurement of net deferred tax asset - Tax Cuts & Jobs Act | — | 4,601 | — | ||||||||
State income taxes, net of federal income tax effect | 32 | 338 | (725 | ) | |||||||
Non-deductible expenses, tax credits, and other, net | (309 | ) | 524 | 282 | |||||||
| |||||||||||
Total income tax expense (benefit) | $ | 267 | $ | 5,262 | $ | (4,888 | ) |
| For the year ended December 31, | ||||||||||
| 2019 | 2018 | 2017 | ||||||||
Income tax expense (benefit): | |||||||||||
Current: | |||||||||||
Federal | $ | (60 | ) | $ | (119 | ) | $ | — | |||
State | 464 | 530 | — | ||||||||
Deferred: | |||||||||||
Federal | (302 | ) | 467 | 4,750 | |||||||
State | (10 | ) | (611 | ) | 512 | ||||||
Total | $ | 92 | $ | 267 | $ | 5,262 |
| For the year ended December 31, | ||||||||||
| 2018 | 2017 | 2016 | ||||||||
Income tax expense (benefit): | |||||||||||
Current: | |||||||||||
Federal | $ | (119 | ) | $ | — | $ | — | ||||
State | 530 | — | — | ||||||||
Deferred: | |||||||||||
Federal | 467 | 4,750 | (3,790 | ) | |||||||
State | (611 | ) | 512 | (1,098 | ) | ||||||
Total | $ | 267 | $ | 5,262 | $ | (4,888 | ) |
| As of December 31, | ||||||
| 2019 | 2018 | |||||
Deferred tax assets: | |||||||
Net operating loss carryforwards | $ | 9,871 | $ | 9,700 | |||
Accrued expenses and other | 1,641 | 1,644 | |||||
Tax credit carryforwards | 415 | 475 | |||||
Total gross deferred tax assets | 11,927 | 11,819 | |||||
Valuation allowance | (497 | ) | (497 | ) | |||
Total net deferred tax assets | $ | 11,430 | $ | 11,322 | |||
Deferred tax liabilities: | |||||||
Depreciation and amortization | 40 | 244 | |||||
Total Net deferred tax assets | $ | 11,390 | $ | 11,078 |
| As of December 31, | ||||||
| 2018 | 2017 | |||||
Deferred tax assets: | |||||||
Net operating loss carryforwards | $ | 9,700 | $ | 9,881 | |||
Accrued expenses and other | 1,644 | 1,438 | |||||
Tax credit carryforwards | 475 | 444 | |||||
Total gross deferred tax assets | 11,819 | 11,763 | |||||
Valuation allowance | (497 | ) | (497 | ) | |||
Total net deferred tax assets | $ | 11,322 | $ | 11,266 | |||
Deferred tax liabilities: | |||||||
Depreciation and amortization | 244 | 332 | |||||
Total Net deferred tax assets | $ | 11,078 | $ | 10,934 |
| 2019 | 2018 | 2017 | |||||
Preferred Shares - 6.875% Series C | ||||||||
Ordinary income | 100.00 | % | 100.00 | % | 100.00 | % | ||
Return of Capital | 0.00 | % | 0.00 | % | 0.00 | % | ||
Capital Gain Distribution | 0.00 | % | 0.00 | % | 0.00 | % | ||
Preferred Shares - 6.5% Series D | ||||||||
Ordinary income | 100.00 | % | 100.00 | % | 100.00 | % | ||
Return of Capital | 0.00 | % | 0.00 | % | 0.00 | % | ||
Capital Gain Distribution | 0.00 | % | 0.00 | % | 0.00 | % | ||
Preferred Shares - 6.5% Series E | ||||||||
Ordinary income | 100.00 | % | 100.00 | % | 100.00 | % | ||
Return of Capital | 0.00 | % | 0.00 | % | 0.00 | % | ||
Capital Gain Distribution | 0.00 | % | 0.00 | % | 0.00 | % | ||
Common Shares - Class A | ||||||||
Ordinary income | 33.03 | % | 37.91 | % | 70.95 | % | ||
Return of Capital | 66.97 | % | 62.09 | % | 29.05 | % | ||
Capital Gain Distribution | 0.00 | % | 0.00 | % | 0.00 | % |
| 2018 | 2017 | 2016 | |||||
Preferred Shares - 8% Series B | ||||||||
Ordinary income | N/A | N/A | 100.00 | % | ||||
Return of Capital | N/A | N/A | 0.00 | % | ||||
Capital Gain Distribution | N/A | N/A | 0.00 | % | ||||
Preferred Shares - 6.875% Series C | ||||||||
Ordinary income | 100.00 | % | 100.00 | % | 100.00 | % | ||
Return of Capital | 0.00 | % | 0.00 | % | 0.00 | % | ||
Capital Gain Distribution | 0.00 | % | 0.00 | % | 0.00 | % | ||
Preferred Shares - 6.5% Series D | ||||||||
Ordinary income | 100.00 | % | 100.00 | % | 100.00 | % | ||
Return of Capital | 0.00 | % | 0.00 | % | 0.00 | % | ||
Capital Gain Distribution | 0.00 | % | 0.00 | % | 0.00 | % | ||
Preferred Shares - 6.5% Series E | ||||||||
Ordinary income | 100.00 | % | 100.00 | % | N/A | |||
Return of Capital | 0.00 | % | 0.00 | % | N/A | |||
Capital Gain Distribution | 0.00 | % | 0.00 | % | N/A | |||
Common Shares - Class A | ||||||||
Ordinary income | 37.91 | % | 70.95 | % | 100.00 | % | ||
Return of Capital | 62.09 | % | 29.05 | % | 0.00 | % | ||
Capital Gain Distribution | 0.00 | % | 0.00 | % | 0.00 | % |
| Year Ended December 31, 2019 | ||||||||||||||
| First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||
Hotel Operating Revenues: | |||||||||||||||
Room | $ | 91,485 | $ | 118,980 | $ | 108,909 | $ | 105,324 | |||||||
Food & Beverage | 14,228 | 18,253 | 15,870 | 17,028 | |||||||||||
Other | 8,930 | 10,280 | 10,140 | 10,241 | |||||||||||
Other Revenues | 274 | 46 | 142 | 124 | |||||||||||
Hotel Operating Expenses: | |||||||||||||||
Room | 22,090 | 24,013 | 24,000 | 23,385 | |||||||||||
Food & Beverage | 12,832 | 13,990 | 12,605 | 13,393 | |||||||||||
Other | 40,189 | 44,607 | 43,476 | 42,856 | |||||||||||
Other Expenses | 53,133 | 55,658 | 55,062 | 55,411 | |||||||||||
(Loss) Income from Unconsolidated Joint Ventures | 181 | 299 | 38 | 173 | |||||||||||
Income (Loss) Before Income Taxes | (13,146 | ) | 9,590 | (44 | ) | (2,155 | ) | ||||||||
Income Tax (Expense) Benefit | 5,264 | (4,031 | ) | 551 | (1,876 | ) | |||||||||
Net Income | (7,882 | ) | 5,559 | 507 | (4,031 | ) | |||||||||
| |||||||||||||||
Income (loss) Allocated to Noncontrolling Interests | (1,063 | ) | (49 | ) | (442 | ) | (812 | ) | |||||||
Income (loss) Allocated to Noncontrolling Interests - Consolidated Joint Venture | 140 | (292 | ) | 340 | — | ||||||||||
Preferred Distributions | 6,044 | 6,043 | 6,044 | 6,043 | |||||||||||
Net Income (Loss) applicable to Common Shareholders | $ | (13,003 | ) | $ | (143 | ) | $ | (5,435 | ) | $ | (9,262 | ) | |||
Earnings per share: | |||||||||||||||
Basic Net Income (Loss) applicable to Common Shareholders | $ | (0.34 | ) | $ | (0.01 | ) | $ | (0.15 | ) | $ | (0.24 | ) | |||
Diluted Net Income (Loss) applicable to Common Shareholders | $ | (0.34 | ) | $ | (0.01 | ) | $ | (0.15 | ) | $ | (0.24 | ) | |||
Weighted Average Common Shares Outstanding - Basic | 39,115,390 | 39,127,385 | 38,878,818 | 38,516,879 | |||||||||||
Weighted Average Common Shares Outstanding - Diluted | 39,115,390 | 39,127,385 | 38,878,818 | 38,516,879 | |||||||||||
| |||||||||||||||
| Year Ended December 31, 2018 | ||||||||||||||
| First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||
Hotel Operating Revenues: | |||||||||||||||
Room | $ | 79,048 | $ | 109,492 | $ | 103,958 | $ | 105,409 | |||||||
Food & Beverage | 13,538 | 17,001 | 15,628 | 18,379 | |||||||||||
Other | 6,929 | 7,269 | 8,143 | 8,884 | |||||||||||
Other Revenues | 3,544 | 84 | 170 | 1,870 | |||||||||||
Hotel Operating Expenses: | |||||||||||||||
Room | 19,356 | 22,945 | 23,615 | 22,747 | |||||||||||
Food & Beverage | 11,851 | 13,331 | 12,475 | 14,465 | |||||||||||
Other | 35,575 | 40,383 | 40,205 | 41,901 | |||||||||||
Other Expenses | 47,879 | 44,717 | 46,514 | 53,839 | |||||||||||
(Loss) Income from Unconsolidated Joint Ventures | (201 | ) | 537 | 582 | 166 | ||||||||||
(Loss) Income Before Income Taxes | (11,803 | ) | 13,007 | 5,672 | 1,756 | ||||||||||
Income Tax Benefit | 2,655 | (1,170 | ) | (2,685 | ) | 933 | |||||||||
Net (Loss) Income | (9,148 | ) | 11,837 | 2,987 | 2,689 | ||||||||||
| |||||||||||||||
(Loss) Income Allocated to Noncontrolling Interests | (1,104 | ) | 500 | (72 | ) | (240 | ) | ||||||||
(Loss) Income Allocated to Noncontrolling Interests - Consolidated Joint Ventures | — | (1,200 | ) | 250 | 241 | ||||||||||
Preferred Distributions | 6,044 | 6,043 | 6,044 | 6,043 | |||||||||||
Net (Loss) Income applicable to Common Shareholders | $ | (14,088 | ) | $ | 6,494 | $ | (3,235 | ) | $ | (3,355 | ) | ||||
Earnings per share: | |||||||||||||||
Basic Net (Loss) Income applicable to Common Shareholders | $ | (0.36 | ) | $ | 0.16 | $ | (0.09 | ) | $ | (0.09 | ) | ||||
Diluted Net (Loss) Income applicable to Common Shareholders | $ | (0.36 | ) | $ | 0.16 | $ | (0.09 | ) | $ | (0.09 | ) | ||||
Weighted Average Common Shares Outstanding - Basic | 39,636,166 | 39,246,946 | 39,321,062 | 39,334,877 | |||||||||||
Weighted Average Common Shares Outstanding - Diluted | 39,636,166 | 39,926,099 | 39,321,062 | 39,334,877 |
| Year Ended December 31, 2018 | ||||||||||||||
| First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||
Hotel Operating Revenues: | |||||||||||||||
Room | $ | 79,048 | $ | 109,492 | $ | 103,958 | $ | 105,409 | |||||||
Food & Beverage | 13,538 | 17,001 | 15,628 | 18,379 | |||||||||||
Other | 6,929 | 7,269 | 8,143 | 8,884 | |||||||||||
Other Revenues | 3,544 | 84 | 170 | 1,870 | |||||||||||
Hotel Operating Expenses: | |||||||||||||||
Room | 19,356 | 22,945 | 23,615 | 22,747 | |||||||||||
Food & Beverage | 11,851 | 13,331 | 12,475 | 14,465 | |||||||||||
Other | 35,575 | 40,383 | 40,205 | 41,901 | |||||||||||
Other Expenses | 47,879 | 44,717 | 46,514 | 53,839 | |||||||||||
(Loss) Income from Unconsolidated Joint Ventures | (201 | ) | 537 | 582 | 166 | ||||||||||
Income (Loss) from Continuing Operations | (11,803 | ) | 13,007 | 5,672 | 1,756 | ||||||||||
Income Tax (Expense) Benefit | 2,655 | (1,170 | ) | (2,685 | ) | 933 | |||||||||
Net Income | (9,148 | ) | 11,837 | 2,987 | 2,689 | ||||||||||
| |||||||||||||||
Income (loss) Allocated to Noncontrolling Interests in Continuing Operations | (1,104 | ) | 500 | (72 | ) | (240 | ) | ||||||||
Income (loss) Allocated to Noncontrolling Interests - Consolidated Joint Venture | — | (1,200 | ) | 250 | 241 | ||||||||||
Preferred Distributions | 6,044 | 6,043 | 6,044 | 6,043 | |||||||||||
Net Income (Loss) applicable to Common Shareholders | $ | (14,088 | ) | $ | 6,494 | $ | (3,235 | ) | $ | (3,355 | ) | ||||
Earnings per share: | |||||||||||||||
Basic Net Income (Loss) applicable to Common Shareholders | $ | (0.36 | ) | $ | 0.16 | $ | (0.09 | ) | $ | (0.09 | ) | ||||
Diluted Net Income (Loss) applicable to Common Shareholders | $ | (0.36 | ) | $ | 0.16 | $ | (0.09 | ) | $ | (0.09 | ) | ||||
Weighted Average Common Shares Outstanding | |||||||||||||||
Basic | 39,636,166 | 39,246,946 | 39,321,062 | 39,334,877 | |||||||||||
Diluted | 39,636,166 | 39,926,099 | 39,321,062 | 39,334,877 | |||||||||||
| |||||||||||||||
| Year Ended December 31, 2017 | ||||||||||||||
| First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||
Hotel Operating Revenues: | |||||||||||||||
Room | $ | 90,769 | $ | 114,461 | $ | 107,695 | $ | 98,224 | |||||||
Food & Beverage | 10,736 | 15,010 | 14,775 | 17,970 | |||||||||||
Other | 6,447 | 7,545 | 7,040 | 6,468 | |||||||||||
Other Revenues | 34,867 | 71,912 | 63 | 794 | |||||||||||
Hotel Operating Expenses: | |||||||||||||||
Room | 21,304 | 23,749 | 23,823 | 21,840 | |||||||||||
Food & Beverage | 9,557 | 11,856 | 12,509 | 13,984 | |||||||||||
Other | 36,406 | 40,917 | 40,585 | 38,520 | |||||||||||
Other Expenses | 43,468 | 47,667 | 51,256 | 54,660 | |||||||||||
(Loss) Income from Unconsolidated Joint Ventures | (3,886 | ) | 711 | 538 | 164 | ||||||||||
(Loss) Income from Continuing Operations | 28,198 | 85,450 | 1,938 | (5,384 | ) | ||||||||||
Income Tax Benefit | (2,243 | ) | (662 | ) | 1,325 | (3,682 | ) | ||||||||
Net (Loss) Income | 25,955 | 84,788 | 3,263 | (9,066 | ) | ||||||||||
| |||||||||||||||
(Loss) Income Allocated to Noncontrolling Interests in Continuing Operations | 1,181 | 4,758 | (90 | ) | (776 | ) | |||||||||
Preferred Distributions | 6,042 | 6,042 | 6,040 | 6,045 | |||||||||||
Net (Loss) Income applicable to Common Shareholders | $ | 18,732 | $ | 73,988 | $ | (2,687 | ) | $ | (14,335 | ) | |||||
Earnings per share: | |||||||||||||||
Basic Net (Loss) Income applicable to Common Shareholders | $ | 0.45 | $ | 1.77 | $ | (0.07 | ) | $ | (0.36 | ) | |||||
Diluted Net (Loss) Income applicable to Common Shareholders | $ | 0.44 | $ | 1.75 | $ | (0.07 | ) | $ | (0.36 | ) | |||||
Weighted Average Common Shares Outstanding | |||||||||||||||
Basic | 41,716,958 | 41,737,044 | 41,721,425 | 40,529,569 | |||||||||||
Diluted | 42,110,911 | 42,207,841 | 41,721,425 | 40,529,569 |
Initial Costs | Costs Capitalized Subsequent to Acquisition (1) | Gross Amounts at which Carried at Close of Period | Accumulated Depreciation | Net Book Value | Initial Costs | Costs Capitalized Subsequent to Acquisition (1) | Gross Amounts at which Carried at Close of Period | Accumulated Depreciation | Net Book Value | |||||||||||||||||||||||||||||||||||||||
Description | Encumbrances | Land | Buildings & Improvements | Land | Buildings & Improvements | Land | Buildings & Improvements | Total | Buildings & Improvements* | Land, Buildings & Improvements | Date of Acquisition | Encumbrances | Land | Buildings & Improvements | Land | Buildings & Improvements | Land | Buildings & Improvements | Total | Buildings & Improvements* | Land, Buildings & Improvements | Date of Acquisition | ||||||||||||||||||||||||||
Courtyard by Marriott Brookline, Brookline, MA | — | 47,414 | — | 4,873 | — | 52,287 | 52,287 | (18,945 | ) | 33,342 | 06/16/05 | — | 47,414 | — | 4,916 | — | 52,330 | 52,330 | (20,632 | ) | 31,698 | 06/16/05 | ||||||||||||||||||||||||||
Annapolis Waterfront Hotel, Annapolis, MD | (28,000 | ) | — | 43,251 | — | 40 | — | 43,291 | 43,291 | (811 | ) | 42,480 | 03/28/18 | (28,000 | ) | — | 43,251 | — | 650 | — | 43,901 | 43,901 | (1,932 | ) | 41,969 | 03/28/18 | ||||||||||||||||||||||
Hilton Garden Inn JFK, JFK Airport, NY | — | 25,018 | — | 3,102 | — | 28,120 | 28,120 | (10,519 | ) | 17,601 | 02/16/06 | — | 25,018 | — | 3,639 | — | 28,657 | 28,657 | (11,459 | ) | 17,198 | 02/16/06 | ||||||||||||||||||||||||||
Holiday Inn Express Cambridge, Cambridge, MA | 1,956 | 9,793 | — | 2,871 | 1,956 | 12,664 | 14,620 | (5,437 | ) | 9,183 | 05/03/06 | 1,956 | 9,793 | — | 3,870 | 1,956 | 13,663 | 15,619 | (5,835 | ) | 9,784 | 05/03/06 | ||||||||||||||||||||||||||
Hyatt House White Plains, White Plains, NY | 8,823 | 30,273 | — | 10,351 | 8,823 | 40,624 | 49,447 | (12,536 | ) | 36,911 | 12/28/06 | 8,823 | 30,273 | — | 11,306 | 8,823 | 41,579 | 50,402 | (14,530 | ) | 35,872 | 12/28/06 | ||||||||||||||||||||||||||
Hampton Inn Seaport, Seaport, NY | 7,816 | 19,040 | — | 1,438 | 7,816 | 20,478 | 28,294 | (6,580 | ) | 21,714 | 02/01/07 | 7,816 | 19,040 | — | 1,544 | 7,816 | 20,584 | 28,400 | (7,216 | ) | 21,184 | 02/01/07 | ||||||||||||||||||||||||||
Gate Hotel JFK Airport, JFK Airport, NY | — | 27,315 | — | 2,429 | — | 29,744 | 29,744 | (8,783 | ) | 20,961 | 06/13/08 | — | 27,315 | — | 2,460 | — | 29,775 | 29,775 | (9,756 | ) | 20,019 | 06/13/08 | ||||||||||||||||||||||||||
Hampton Inn Center City/ Convention Center, Philadelphia, PA | 3,490 | 24,382 | — | 11,252 | 3,490 | 35,634 | 39,124 | (15,361 | ) | 23,763 | 02/15/06 | 3,490 | 24,382 | — | 11,699 | 3,490 | 36,081 | 39,571 | (16,850 | ) | 22,721 | 02/15/06 | ||||||||||||||||||||||||||
Duane Street Hotel, Tribeca, NY | 8,213 | 12,869 | — | 2,124 | 8,213 | 14,993 | 23,206 | (4,968 | ) | 18,238 | 01/04/08 | 8,213 | 12,869 | — | 2,305 | 8,213 | 15,174 | 23,387 | (5,496 | ) | 17,891 | 01/04/08 | ||||||||||||||||||||||||||
NU Hotel Brooklyn, Brooklyn, NY | — | 22,042 | — | 1,842 | — | 23,884 | 23,884 | (7,028 | ) | 16,856 | 01/14/08 | — | 22,042 | — | 1,876 | — | 23,918 | 23,918 | (7,781 | ) | 16,137 | 01/14/08 | ||||||||||||||||||||||||||
Hilton Garden Inn Tribeca, Tribeca, NY | (45,183 | ) | 21,077 | 42,955 | — | 1,103 | 21,077 | 44,058 | 65,135 | (11,022 | ) | 54,113 | 05/01/09 | (45,450 | ) | 21,077 | 42,955 | — | 1,211 | 21,077 | 44,166 | 65,243 | (12,238 | ) | 53,005 | 05/01/09 |
Initial Costs | Costs Capitalized Subsequent to Acquisition (1) | Gross Amounts at which Carried at Close of Period | Accumulated Depreciation | Net Book Value | Initial Costs | Costs Capitalized Subsequent to Acquisition (1) | Gross Amounts at which Carried at Close of Period | Accumulated Depreciation | Net Book Value | |||||||||||||||||||||||||||||||||||||||||||||||
Description | Encumbrances | Land | Buildings & Improvements | Land | Buildings & Improvements | Land | Buildings & Improvements | Total | Buildings & Improvements* | Land, Buildings & Improvements | Date of Acquisition | Encumbrances | Land | Buildings & Improvements | Land | Buildings & Improvements | Land | Buildings & Improvements | Total | Buildings & Improvements* | Land, Buildings & Improvements | Date of Acquisition | ||||||||||||||||||||||||||||||||||
Hampton Inn Washington, D.C., Washington, DC | 9,335 | 58,048 | — | 1,463 | 9,335 | 59,511 | 68,846 | (13,201 | ) | 55,645 | 09/01/10 | 9,335 | 58,048 | — | 2,994 | 9,335 | 61,042 | 70,377 | (14,930 | ) | 55,447 | 09/01/10 | ||||||||||||||||||||||||||||||||||
Sheraton Wilmington South, Wilmington South, DE | 1,765 | 16,929 | — | 1,769 | 1,765 | 18,698 | 20,463 | (6,872 | ) | 13,591 | 12/21/10 | 1,765 | 16,929 | — | 5,068 | 1,765 | 21,997 | 23,762 | (7,528 | ) | 16,234 | 12/21/10 | ||||||||||||||||||||||||||||||||||
The Capitol Hill Hotel Washington, DC | (25,000 | ) | 8,095 | 35,141 | — | 4,493 | 8,095 | 39,634 | 47,729 | (10,186 | ) | 37,543 | 04/15/11 | (25,000 | ) | 8,095 | 35,141 | — | 4,924 | 8,095 | 40,065 | 48,160 | (11,508 | ) | 36,652 | 04/15/11 | ||||||||||||||||||||||||||||||
Courtyard by Marriott Los Angeles Westside, LA Westside, CA | (35,000 | ) | 13,489 | 27,025 | — | 4,902 | 13,489 | 31,927 | 45,416 | (8,552 | ) | 36,864 | 05/19/11 | (35,000 | ) | 13,489 | 27,025 | — | 4,952 | 13,489 | 31,977 | 45,466 | (9,912 | ) | 35,554 | 05/19/11 | ||||||||||||||||||||||||||||||
Cadillac Hotel & Beach Club, Miami, FL | 35,700 | 55,805 | — | 43,462 | 35,700 | 99,267 | 134,967 | (15,900 | ) | 119,067 | 11/16/11 | 35,700 | 55,805 | — | 44,315 | 35,700 | 100,120 | 135,820 | (21,328 | ) | 114,492 | 11/16/11 | ||||||||||||||||||||||||||||||||||
The Rittenhouse Hotel, Philadelphia, PA | 7,108 | 29,556 | — | 27,215 | 7,108 | 56,771 | 63,879 | (17,685 | ) | 46,194 | 03/01/12 | 7,108 | 29,556 | — | 27,868 | 7,108 | 57,424 | 64,532 | (22,271 | ) | 42,261 | 03/01/12 | ||||||||||||||||||||||||||||||||||
The Boxer Boston, Boston, MA | 1,456 | 14,954 | — | 1,606 | 1,456 | 16,560 | 18,016 | (3,706 | ) | 14,310 | 05/07/12 | 1,456 | 14,954 | — | 1,112 | 1,456 | 16,066 | 17,522 | (4,314 | ) | 13,208 | 05/07/12 | ||||||||||||||||||||||||||||||||||
Holiday Inn Express Chelsea, Manhattan, NY | 30,329 | 57,016 | — | 1,611 | 30,329 | 58,627 | 88,956 | (10,135 | ) | 78,821 | 06/18/12 | 30,329 | 57,016 | — | 2,049 | 30,329 | 59,065 | 89,394 | (11,860 | ) | 77,534 | 06/18/12 | ||||||||||||||||||||||||||||||||||
Hyatt Union Square, Union Square, NY | (55,750 | ) | 32,940 | 79,300 | — | 3,549 | 32,940 | 82,849 | 115,789 | (12,629 | ) | 103,160 | 04/09/13 | (56,000 | ) | 32,940 | 79,300 | — | 4,028 | 32,940 | 83,328 | 116,268 | (15,169 | ) | 101,099 | 04/09/13 | ||||||||||||||||||||||||||||||
Courtyard by Marriott Downtown San Diego, San Diego, CA | 15,656 | 51,674 | — | 2,044 | 15,656 | 53,718 | 69,374 | (8,205 | ) | 61,169 | 05/30/13 | 15,656 | 51,674 | — | 2,138 | 15,656 | 53,812 | 69,468 | (9,797 | ) | 59,671 | 05/30/13 | ||||||||||||||||||||||||||||||||||
Residence Inn Miami Coconut Grove, Coconut Grove, FL | 4,146 | 17,456 | — | 7,210 | 4,146 | 24,666 | 28,812 | (6,677 | ) | 22,135 | 06/12/13 | 4,146 | 17,456 | — | 7,487 | 4,146 | 24,943 | 29,089 | (8,161 | ) | 20,928 | 06/12/13 | ||||||||||||||||||||||||||||||||||
The Hotel Milo, Santa Barbara, CA | (22,741 | ) | — | 55,080 | — | 4,676 | — | 59,756 | 59,756 | (8,256 | ) | 51,500 | 02/28/14 | (22,227 | ) | — | 55,080 | — | 4,900 | — | 59,980 | 59,980 | (10,318 | ) | 49,662 | 02/28/14 |
Initial Costs | Costs Capitalized Subsequent to Acquisition (1) | Gross Amounts at which Carried at Close of Period | Accumulated Depreciation | Net Book Value | Initial Costs | Costs Capitalized Subsequent to Acquisition (1) | Gross Amounts at which Carried at Close of Period | Accumulated Depreciation | Net Book Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description | Encumbrances | Land | Buildings & Improvements | Land | Buildings & Improvements | Land | Buildings & Improvements | Total | Buildings & Improvements* | Land, Buildings & Improvements | Date of Acquisition | Encumbrances | Land | Buildings & Improvements | Land | Buildings & Improvements | Land | Buildings & Improvements | Total | Buildings & Improvements* | Land, Buildings & Improvements | Date of Acquisition | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hilton Garden Inn Manhattan Midtown East, Midtown East, NY | (44,325 | ) | 45,480 | 60,762 | — | 336 | 45,480 | 61,098 | 106,578 | (7,104 | ) | 99,474 | 05/27/14 | (44,325 | ) | 45,480 | 60,762 | — | 409 | 45,480 | 61,171 | 106,651 | (8,676 | ) | 97,975 | 05/27/14 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parrot Key Hotel & Villas, Key West, FL | 57,889 | 33,959 | — | 13,433 | 57,889 | 47,392 | 105,281 | (4,084 | ) | 101,197 | 05/07/14 | 57,889 | 33,959 | — | 14,161 | 57,889 | 48,120 | 106,009 | (7,641 | ) | 98,368 | 05/07/14 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Winter Haven Hotel Miami Beach, Miami Beach, FL | 5,400 | 18,147 | — | 601 | 5,400 | 18,748 | 24,148 | (2,592 | ) | 21,556 | 12/20/13 | 5,400 | 18,147 | — | 694 | 5,400 | 18,841 | 24,241 | (3,139 | ) | 21,102 | 12/20/13 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Blue Moon Hotel Miami Beach, Miami Beach, FL | 4,874 | 20,354 | — | 823 | 4,874 | 21,177 | 26,051 | (2,943 | ) | 23,108 | 12/20/13 | 4,874 | 20,354 | — | 981 | 4,874 | 21,335 | 26,209 | (3,579 | ) | 22,630 | 12/20/13 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The St. Gregory Hotel, Dupont Circle, Washington D.C. | (23,598 | ) | 23,764 | 33,005 | — | 7,267 | 23,764 | 40,272 | 64,036 | (4,463 | ) | 59,573 | 06/16/15 | (22,857 | ) | 23,764 | 33,005 | — | 7,470 | 23,764 | 40,475 | 64,239 | (6,339 | ) | 57,900 | 06/16/15 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TownePlace Suites Sunnyvale, Sunnyvale, CA | — | 18,999 | — | 660 | — | 19,659 | 19,659 | (1,778 | ) | 17,881 | 08/25/15 | — | 18,999 | — | 666 | — | 19,665 | 19,665 | (2,348 | ) | 17,317 | 08/25/15 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Ritz-Carlton Georgetown, Washington D.C. | 17,825 | 29,584 | — | 2,634 | 17,825 | 32,218 | 50,043 | (2,688 | ) | 47,355 | 12/29/15 | 17,825 | 29,584 | — | 3,963 | 17,825 | 33,547 | 51,372 | (3,933 | ) | 47,439 | 12/29/15 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Sanctuary Beach Resort, Marina, CA | (14,700 | ) | 20,278 | 17,319 | — | 6,468 | 20,278 | 23,787 | 44,065 | (2,394 | ) | 41,671 | 01/28/16 | (14,489 | ) | 20,278 | 17,319 | — | 6,725 | 20,278 | 24,044 | 44,322 | (3,763 | ) | 40,559 | 01/28/16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hilton Garden Inn M Street, Washington D.C. | 30,793 | 67,420 | — | 134 | 30,793 | 67,554 | 98,347 | (4,767 | ) | 93,580 | 03/09/16 | 30,793 | 67,420 | — | 179 | 30,793 | 67,599 | 98,392 | (6,475 | ) | 91,917 | 03/09/16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Envoy Boston Seaport, Boston, MA | 25,264 | 75,979 | — | 3,241 | 25,264 | 79,220 | 104,484 | (4,923 | ) | 99,561 | 07/21/16 | 25,264 | 75,979 | — | 3,725 | 25,264 | 79,704 | 104,968 | (7,299 | ) | 97,669 | 07/21/16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Courtyard by Marriott Sunnyvale, Sunnyvale, CA | (40,600 | ) | 17,694 | 53,272 | — | 16 | 17,694 | 53,288 | 70,982 | (2,933 | ) | 68,049 | 10/20/16 | (40,600 | ) | 17,694 | 53,272 | — | 59 | 17,694 | 53,331 | 71,025 | (4,269 | ) | 66,756 | 10/20/16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mystic Marriott Hotel & Spa, Groton, CT | 1,420 | 40,440 | — | 6,632 | 1,420 | 47,072 | 48,492 | (2,741 | ) | 45,751 | 01/03/17 | 1,420 | 40,440 | — | 9,646 | 1,420 | 50,086 | 51,506 | (4,932 | ) | 46,574 | 01/03/17 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Ritz-Carlton Coconut Grove, Coconut Grove, FL | 5,185 | 30,825 | — | 6,964 | 5,185 | 37,789 | 42,974 | (2,009 | ) | 40,965 | 02/01/17 | 5,185 | 30,825 | — | 9,391 | 5,185 | 40,216 | 45,401 | (3,983 | ) | 41,418 | 02/01/17 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Pan Pacific Hotel Seattle, Seattle, WA | 13,079 | 59,255 | — | 83 | 13,079 | 59,338 | 72,417 | (2,726 | ) | 69,691 | 02/21/17 | 13,079 | 59,255 | — | 308 | 13,079 | 59,563 | 72,642 | (4,228 | ) | 68,414 | 02/21/17 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Philadelphia Westin, Philadelphia, PA | 19,154 | 103,406 | — | 386 | 19,154 | 103,792 | 122,946 | (3,901 | ) | 119,045 | 06/29/17 | 19,154 | 103,406 | — | 1,467 | 19,154 | 104,873 | 124,027 | (6,660 | ) | 117,367 | 06/29/17 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Ambrose Hotel, Santa Monica, CA | 18,750 | 26,839 | — | 1,454 | 18,750 | 28,293 | 47,043 | (1,540 | ) | 45,503 | 12/01/16 | 18,750 | 26,839 | — | 1,565 | 18,750 | 28,404 | 47,154 | (2,414 | ) | 44,740 | 12/01/16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Investment in Real Estate | $ | (334,897 | ) | $ | 518,243 | $ | 1,491,901 | $ | — | $ | 196,557 | $ | 518,243 | $ | 1,688,458 | $ | 2,206,701 | $ | (277,580 | ) | $ | 1,929,121 | $ | (333,948 | ) | $ | 518,243 | $ | 1,491,901 | $ | — | $ | 218,720 | $ | 518,243 | $ | 1,710,621 | $ | 2,228,864 | $ | (340,499 | ) | $ | 1,888,365 |
(1) | Costs capitalized subsequent to acquisition include reductions of asset value due to impairment. |
* | Assets are depreciated over a 7 to 40 year life, upon which the latest income statement is computed. |
| 2019 | 2018 | 2017 | ||||||||
Reconciliation of Real Estate | |||||||||||
Balance at beginning of year | $ | 2,206,701 | $ | 2,159,282 | $ | 2,010,621 | |||||
Additions during the year | 22,163 | 122,708 | 285,141 | ||||||||
Dispositions/Deconsolidation of consolidated joint venture during the year | — | (75,289 | ) | (136,480 | ) | ||||||
Total Real Estate | $ | 2,228,864 | $ | 2,206,701 | $ | 2,159,282 | |||||
| |||||||||||
Reconciliation of Accumulated Depreciation | |||||||||||
Balance at beginning of year | $ | 277,580 | $ | 238,213 | $ | 222,512 | |||||
Depreciation for year | 62,919 | 55,496 | 50,111 | ||||||||
Accumulated depreciation on assets sold | — | (16,129 | ) | (34,410 | ) | ||||||
Balance at the end of year | $ | 340,499 | $ | 277,580 | $ | 238,213 |
| 2018 | 2017 | 2016 | ||||||||
Reconciliation of Real Estate | |||||||||||
Balance at beginning of year | $ | 2,159,282 | $ | 2,010,621 | $ | 1,999,438 | |||||
Additions during the year | 122,708 | 285,141 | 372,011 | ||||||||
Dispositions/Deconsolidation of consolidated joint venture during the year | (75,289 | ) | (136,480 | ) | (360,828 | ) | |||||
Total Real Estate | $ | 2,206,701 | $ | 2,159,282 | $ | 2,010,621 | |||||
| |||||||||||
Reconciliation of Accumulated Depreciation | |||||||||||
Balance at beginning of year | $ | 238,213 | $ | 222,512 | $ | 237,129 | |||||
Depreciation for year | 55,496 | 50,111 | 46,078 | ||||||||
Accumulated depreciation on assets sold | (16,129 | ) | (34,410 | ) | (60,695 | ) | |||||
Balance at the end of year | $ | 277,580 | $ | 238,213 | $ | 222,512 |
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |
Item 9A. | Controls and Procedures |
Item 9B. | Other Information |
Item 10. | Trustees, Executive Officers and Corporate Governance |
Item 11. | Executive Compensation |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans(1) | |||
Equity compensation plans approved by security holders | - | - | ||||
Equity compensation plans not approved by security holders | - | - | - | |||
Total | - | - |
(1) | Represents shares issuable under the Company’s 2012 Amended and Restated Equity Incentive Plan. On January 1, 2012, the Company’s 2008 Equity Incentive Plan (“2008 EIP”) was terminated. Termination of the 2008 EIP does not impact awards issued under the 2008 EIP prior its termination. |
Item 13. | Certain Relationships and Related Transactions, and Trustee Independence |
Item 14. | Principal Accountant Fees and Services |
(a) | Documents filed as part of this report. |
1. | Financial Statements: |
2. | Financial Statement Schedules: |
3. | Exhibits |
Exhibit No. | |||
3.1 | |||
3.2 | |||
4.1 | |||
4.2 | |||
4.3 | |||
4.4 | |||
4.5 | |||
4.6 | |||
4.7 | |||
4.8 | |||
4.9 | |||
4.10 | |||
4.11 | |||
4.12 | |||
4.13 | |||
10.1 | |||
|
Exhibit No. | |||
10.2 | |||
10.3 | |||
10.4 | |||
10.5 | |||
10.6 | |||
10.7 | |||
10.8 | |||
10.9 | |||
10.10 | |||
10.11 | |||
10.12 | |||
10.13 |
Exhibit No. | |||
10.14 | |||
10.15 | |||
10.16 | |||
10.17 | |||
10.18 | |||
10.19 | |||
10.20 | |||
Exhibit No. | |||
10.33 | |||
10.34 | |||
21.1 | |||
23.1 | |||
31.1 | |||
31.2 | |||
32.1 | |||
32.2 |
Exhibit No. | |||
101.INS | Instance Document | ||
101.SCH | XBRL Taxonomy Extension Schema Document* | ||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document* | ||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document* | ||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document* | ||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document* | ||
* | Filed herewith. |
| HERSHA HOSPITALITY TRUST |
February | /s/ Jay H. Shah |
Jay H. Shah | |
Chief Executive Officer | |
| (Principal Executive Officer) |
Signature | Title | Date | ||
/s/ Hasu P. Shah | Chairman and Trustee | February | ||
Hasu P. Shah | ||||
/s/ Jay H. Shah | Chief Executive Officer and Trustee (Principal Executive Officer) | February | ||
Jay H. Shah | ||||
/s/ Neil H. Shah | President and Chief Operating Officer (Chief Operating Officer) | February | ||
Neil H. Shah | ||||
/s/ Ashish R. Parikh | Chief Financial Officer (Principal Financial Officer) | February | ||
Ashish R. Parikh | ||||
/s/ Michael R. Gillespie | Chief Accounting Officer (Principal Accounting Officer) | February | ||
Michael R. Gillespie | ||||
/s/ Donald J. Landry | Trustee | February | ||
Donald J. Landry | ||||
| ||||
/s/ Jackson Hsieh | Trustee | February | ||
Jackson Hsieh | ||||
| ||||
/s/ Thomas J. Hutchison III | Trustee | February | ||
Thomas J. Hutchison III | ||||
/s/ Michael A. Leven | Trustee | February | ||
Michael A. Leven | ||||
/s/ Dianna F. Morgan | Trustee | February | ||
Dianna F. Morgan | ||||
/s/ John M. Sabin | Trustee | February | ||
John M. Sabin |