Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 4-May-15 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Red Lion Hotels CORP | |
Entity Central Index Key | 1052595 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 19,934,378 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $76,615 | $5,126 |
Restricted cash | 5,583 | 225 |
Accounts receivable, net | 7,063 | 6,752 |
Notes receivable | 2,932 | 2,944 |
Inventories | 820 | 1,013 |
Prepaid expenses and other | 3,268 | 3,671 |
Deferred income taxes | 151 | 0 |
Assets held for sale | 0 | 21,173 |
Total current assets | 96,432 | 40,904 |
Property and equipment, net | 159,468 | 160,410 |
Goodwill | 8,512 | 8,512 |
Intangible assets | 7,012 | 7,012 |
Notes receivable, long term | 2,271 | 2,340 |
Other assets, net | 3,905 | 3,849 |
Total assets | 277,600 | 223,027 |
Current liabilities: | ||
Accounts payable | 3,578 | 2,952 |
Accrued payroll and related benefits | 4,032 | 4,567 |
Other accrued entertainment expenses | 8,859 | 5,625 |
Other accrued expenses | 4,413 | 2,547 |
Deferred income taxes | 0 | 2,778 |
Total current liabilities | 20,882 | 18,469 |
Long-term debt, due after one year, net of discount | 51,508 | 29,873 |
Deferred income | 2,871 | 2,988 |
Deferred income taxes | 2,971 | 35 |
Debentures due Red Lion Hotels Capital Trust | 30,825 | 30,825 |
Total liabilities | 109,057 | 82,190 |
Commitments and contingencies | ||
Red Lion Hotels Corporation stockholders' equity | ||
Preferred stock- 5,000,000 shares authorized; $0.01 par value; no shares issued or outstanding | 0 | 0 |
Common stock - 50,000,000 shares authorized; $0.01 par value; 19,918,778 and 19,846,508 shares issued and outstanding | 199 | 198 |
Additional paid-in capital | 142,479 | 153,671 |
Accumulated other comprehensive income (loss) | 0 | -203 |
Retained earnings (accumulated deficit) | -2,665 | -12,829 |
Total Red Lion Hotels Corporation stockholders' equity | 140,013 | 140,837 |
Noncontrolling interest | 28,530 | 0 |
Total stockholders' equity | 168,543 | 140,837 |
Total liabilities and stockholders’ equity | $277,600 | $223,027 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Red Lion Hotels Corporation stockholders' equity | ||
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 19,918,778 | 19,846,508 |
Common stock, shares outstanding (in shares) | 19,918,778 | 19,846,508 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenue: | ||
Company operated hotels | $23,772 | $25,924 |
Franchised hotels | 2,093 | 1,526 |
Entertainment | 3,677 | 5,105 |
Other revenues from managed properties | 163 | 0 |
Other | 10 | 33 |
Total revenues | 29,715 | 32,588 |
Operating expenses: | ||
Company operated hotels | 20,922 | 22,814 |
Franchised hotels | 2,377 | 1,442 |
Entertainment | 3,126 | 4,057 |
Other costs from managed properties | 163 | 0 |
Other | 8 | 114 |
Depreciation and amortization | 2,976 | 3,143 |
Hotel facility and land lease | 1,600 | 1,155 |
Gain on asset dispositions, net | -16,415 | -75 |
General and administrative expenses | 2,324 | 2,113 |
Total operating expenses | 17,081 | 34,763 |
Operating income (loss) | 12,634 | -2,175 |
Other income (expense): | ||
Interest expense | -1,502 | -1,217 |
Loss on early retirement of debt | -1,159 | 0 |
Other income, net | 272 | 93 |
Income (loss) from continuing operations before taxes | 10,245 | -3,299 |
Income tax expense | 112 | 31 |
Net income (loss) from continuing operations | 10,133 | -3,330 |
Discontinued operations | ||
Loss from discontinued business units, net of income tax benefit of $0 | 0 | -186 |
Loss on disposal of the assets of discontinued business units, net of income tax benefit of $0 | 0 | -2 |
Net income (loss) from discontinued operations | 0 | -188 |
Net income (loss) | 10,133 | -3,518 |
Net (income) loss attributable to noncontrolling interest | 30 | 0 |
Net income (loss) attributable to Red Lion Hotels Corporation | 10,163 | -3,518 |
Unrealized gains (losses) on cash flow hedge | 0 | -1 |
Comprehensive income (loss) | $10,163 | ($3,519) |
Earnings per share - basic | ||
Income (loss) from continuing operations attributable to Red Lion Hotels Corporation (in dollars per share) | $0.51 | ($0.17) |
Income (loss) from discontinued operations (in dollars per share) | $0 | ($0.01) |
Net income (loss) attributable to Red Lion Hotels Corporation (in dollars per share) | $0.51 | ($0.18) |
Earnings per share - diluted | ||
Income (loss) from continuing operations attributable to Red Lion Hotels Corporation (in dollars per share) | $0.51 | ($0.17) |
Income (loss) from discontinued operations (in dollars per share) | $0 | ($0.01) |
Net income (loss) attributable to Red Lion Hotels Corporation (in dollars per share) | $0.51 | ($0.18) |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Discontinued operations | ||
Income tax (benefit) expense on discontinued business units | $0 | $0 |
Income (loss) on disposal and impairment of the assets of the discontinued business units, net of income tax (benefit) expense | $0 | $0 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating activities: | ||
Net income (loss) from continuing operations | $10,133 | ($3,518) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 3,108 | 3,223 |
Gain on disposition of property, equipment and other assets, net | -16,415 | -73 |
Loss on early retirement of debt | 1,159 | 0 |
Deferred income taxes | 7 | 7 |
Equity in investments | -33 | 0 |
Stock based compensation expense | 250 | 330 |
Provision for doubtful accounts | -2 | 1 |
Change in current assets and liabilities: | ||
Restricted cash | -5,358 | 0 |
Accounts receivable | -343 | -273 |
Notes receivable | -175 | -35 |
Inventories | 135 | 120 |
Prepaid expenses and other | -25 | 427 |
Accounts payable | 626 | -369 |
Accrued other | 4,684 | 4,129 |
Net cash provided by (used in) operating activities | -2,249 | 3,969 |
Investing activities: | ||
Purchases of property and equipment | -2,234 | -3,102 |
Proceeds from disposition of property and equipment | 37,729 | 295 |
Proceeds from sale of joint ventures | 17,071 | 0 |
Collection of notes receivable related to property sales | 336 | 42 |
Advances to Red Lion Hotels Capital Trust | -15 | -27 |
Other, net | -54 | 0 |
Net cash provided by (used in) investing activities | 52,833 | -2,792 |
Financing activities: | ||
Borrowings on long-term debt | 53,807 | 0 |
Repayment of long-term debt | -30,528 | -750 |
Proceeds from stock compensation, net | 49 | 36 |
Debt issuance costs | -2,423 | -5 |
Net cash provided by (used in) financing activities | 20,905 | -719 |
Change in cash and cash equivalents: | ||
Net increase (decrease) in cash and cash equivalents | 71,489 | 458 |
Cash and cash equivalents at beginning of period | 5,126 | 13,058 |
Cash and cash equivalents at end of period | 76,615 | 13,516 |
Cash paid during periods for: | ||
Income taxes | 13 | 31 |
Interest on long-term debt | 1,366 | 1,174 |
Non-cash operating, investing and financing activities: | ||
Reclassification of property and other assets to assets held for sale | 0 | 137 |
Reclassification of long-term note receivable to short-term | 227 | 0 |
Conversion of accounts receivable to note receivable | $80 | $0 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization |
Red Lion Hotels Corporation ("RLHC", "we", "our", "us" or the "Company") is a NYSE-listed hospitality and leisure company (ticker symbols RLH and RLH-pa) primarily engaged in the ownership, management and franchising of hotels under our proprietary brands, including Hotel RL, Red Lion Hotels, Red Lion Inns & Suites and Leo Hotel Collection (the "Red Lion Brands"). The Red Lion Brands represent upscale and midscale full and select service hotels. As of March 31, 2015, the Red Lion network of hotels was comprised of 57 hotels located in 12 states and one Canadian province. The Red Lion Hotels and Red Lion Inn & Suites network was comprised of 55 hotels with 8,799 rooms and 438,322 square feet of meeting space, of which we operated 18 hotels (12 are majority-owned and consolidated, five are leased and one is managed), and franchised 37 hotels. The Leo Hotel Collection was comprised of two hotels with 3,256 rooms and 241,000 square feet of meeting space. | |
We are also engaged in entertainment operations, which derive revenues from promotion and presentation of entertainment productions and ticketing services under the operations of WestCoast Entertainment and TicketsWest. The ticketing service offers online ticket sales, ticketing inventory management systems, call center services, and outlet/electronic distributions for event locations. | |
We were incorporated in the state of Washington in April 1978, and until 2005 operated hotels under various other brand names including Cavanaughs Hotels and WestCoast Hospitality Corporation. The financial statements encompass the accounts of Red Lion Hotels Corporation and all of its consolidated subsidiaries, including Red Lion Hotels Holdings, Inc., Red Lion Hotels Franchising, Inc., Red Lion Hotels Management, Inc. ("RL Management"), Red Lion Hotels Limited Partnership ("RLHLP"), and RL Venture LLC ("RL Venture"). | |
The financial statements include an equity method investment in a 19.9% owned real estate venture, as well as certain cost method investments in various entities included as other assets, over which we do not exercise significant influence. In addition, we hold a 3% common interest in Red Lion Hotels Capital Trust (the “Trust”) that is considered a variable interest entity. We are not the primary beneficiary of the Trust; thus, it is treated as an equity method investment. |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation |
The unaudited consolidated financial statements included herein have been prepared by us pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and in accordance with generally accepted accounting principles in the United States of America (“GAAP”). Certain information and footnote disclosures normally included in financial statements have been condensed or omitted as permitted by such rules and regulations. | |
The consolidated balance sheet as of December 31, 2014 has been compiled from the audited balance sheet as of such date. We believe the disclosures included herein are adequate; however, they should be read in conjunction with the consolidated financial statements and the notes thereto for the year ended December 31, 2014, previously filed with the SEC on Form 10-K. | |
In the opinion of management, these unaudited consolidated financial statements contain all of the adjustments of a normal and recurring nature necessary to present fairly our consolidated financial position at March 31, 2015, the consolidated statements of comprehensive income (loss) for the three months ended March 31, 2015 and 2014, and the consolidated cash flows for the three months ended March 31, 2015 and 2014. The comprehensive income (loss) for the periods presented may not be indicative of that which may be expected for a full year. | |
Management makes estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements, the reported amounts of revenues and expenses during the reporting period and the disclosures of contingent liabilities. Actual results could materially differ from those estimates and interim results may not be indicative of fiscal year performance because of seasonal and short-term variations. | |
Changes to Significant Accounting Policies | |
We recognize other revenue and costs from managed properties when we incur the related reimbursable costs. These costs primarily consist of payroll and related expenses at managed properties where we are the employer. As these costs have no added markup, the revenue and related expense have no impact on either our operating or net income. | |
Reclassifications | |
Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. Except as otherwise described, these reclassifications had no effect on reported income/losses, total assets, total liabilities, or stockholders’ equity as otherwise reported. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers, which is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 may be applied using either a full retrospective or a modified retrospective approach and is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and early adoption is not permitted. We are in the process of evaluating this guidance and our method of adoption. | |
In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, which changes the consolidation analysis for both the variable interest model and for the voting model for limited partnerships and similar entities. ASU 2015-02 is effective for annual and interim periods beginning after December 15, 2015 and early application is permitted. ASU 2015-02 provides for one of two methods of transition: retrospective application to each prior period presented; or recognition of the cumulative effect of retrospective application of the new standard in the period of initial application. We are in the process of evaluating this guidance and our method of adoption. | |
In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. ASU 2015-03 is effective for annual and interim periods beginning after December 15, 2015 and early application is permitted. We have early adopted this guidance in the first quarter of 2015. We utilized retrospective application of the new standard and reclassified prior period balances of prepaid debt fees to debt discount. | |
In April 2015, the FASB issued ASU 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement, which provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance does not change the accounting for a customer’s accounting for service contracts. ASU 2015-05 is effective for annual and interim reporting periods beginning after December 15, 2015. We are in the process of evaluating this guidance and our method of adoption. | |
Management has assessed the potential impact of other recently issued, but not yet effective, accounting standards and determined that the provisions are either not applicable to our Company, or are not anticipated to have a material impact on our consolidated financial statements. |
Variable_Interest_Entities
Variable Interest Entities | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Variable Interest Entities [Abstract] | ||||
Variable Interest Entities | Variable Interest Entities | |||
RL Venture | ||||
In January 2015, we transferred 12 of our wholly owned hotels into RL Venture, a newly created entity that was initially wholly owned by us. Subsequently, we sold a 45 percent ownership stake in RL Venture to Shelbourne Falcon RLHC Hotel Investors LLC ("Shelbourne Falcon"), an entity that is led by Shelbourne Capital LLC ("Shelbourne"). We maintain a 55 percent interest in RL Venture and the 12 hotels are managed by RL Management, one of our wholly-owned subsidiaries, subject to a management agreement. RL Venture is considered a variable interest entity because our voting rights are not proportional to our financial interest and substantially all of RL Venture's activities involve and are conducted on our behalf. We have determined that we are the primary beneficiary as (a) we maintain a majority financial position, (b) we maintain management of the properties, and (c) the properties remain branded with Red Lion brands. As a result, we consolidate all of the activities of RL Venture. The equity interest owned by Shelbourne Falcon is reflected as noncontrolling interest in the consolidated financial statements. We recognized an $12.3 million loss on the sale of the equity interests as a reduction to additional paid in capital. | ||||
Cash distributions are made periodically based on calculated distributable income. There were no cash distributions made during the three months ended March 31, 2015. | ||||
RL Venture is considered a significant subsidiary; therefore the following condensed financial statements are presented to satisfy disclosure requirements of Rule 3-05 of Regulation S-X. The assets can only be used by RL Venture and the liabilities, with the exception of the loan, are non-recourse to our general credit or assets. The loan is non-recourse except that several investors in RL Venture, including us, are guarantors regarding the completion of certain improvements to the hotels, environmental covenants in the loan agreement, losses incurred by RL Venture and any event of bankruptcy involving RL Venture or any of its subsidiaries. | ||||
Condensed Balance Sheet | As of | |||
March 31, 2015 | ||||
Assets: | ||||
Cash and restricted cash | $ | 1,974 | ||
Accounts receivable, net | 1,071 | |||
Inventories | 421 | |||
Prepaid expenses and other assets | 801 | |||
Property and equipment, net | 109,581 | |||
Total assets | $ | 113,848 | ||
Liabilities: | ||||
Accounts payable | $ | 1,465 | ||
Accrued payroll and related benefits | 1,328 | |||
Other accrued expenses | 1,578 | |||
Long-term debt | 51,516 | |||
Total liabilities | 55,887 | |||
Shareholders' equity | 57,961 | |||
Total liabilities and stockholders' equity | $ | 113,848 | ||
Condensed Statement of Comprehensive Income (Loss) | Three months ended | |||
31-Mar-15 | ||||
Hotel revenue | $ | 13,552 | ||
Hotel operating expenses | 9,832 | |||
Depreciation and amortization | 1,666 | |||
General and administrative expenses | 1,385 | |||
Other expenses | 14 | |||
Operating income (loss) | 655 | |||
Interest expense | 721 | |||
Net income (loss) | $ | (66 | ) |
Property_and_Equipment
Property and Equipment | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property and Equipment | Property and Equipment | ||||||||
Property and equipment is summarized as follows (in thousands): | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Buildings and equipment | $ | 182,360 | $ | 182,273 | |||||
Landscaping and land improvements | 6,943 | 6,943 | |||||||
Furniture and fixtures | 31,910 | 31,910 | |||||||
221,213 | 221,126 | ||||||||
Less accumulated depreciation | (120,943 | ) | (117,968 | ) | |||||
100,270 | 103,158 | ||||||||
Land | 38,891 | 39,087 | |||||||
Construction in progress | 20,307 | 18,165 | |||||||
Property and equipment, net | $ | 159,468 | $ | 160,410 | |||||
The table above excludes the property and equipment balances of assets held for sale. See Note 6 for further discussion. |
Assets_Held_for_Sale
Assets Held for Sale | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Property, Plant and Equipment [Abstract] | |||||
Assets Held for Sale | Assets Held for Sale | ||||
As of March 31, 2015, there were no properties classified as assets held for sale. The properties classified as assets held for sale on December 31, 2014 were the Red Lion Hotel Bellevue in Bellevue, Washington ("Bellevue property") and the Red Lion Hotel Wenatchee in Wenatchee, Washington ("Wenatchee property"), both of which were sold during the first quarter of 2015 as follows: | |||||
•In January 2015, we sold the Wenatchee property for $4.1 million and concurrently entered into a franchise agreement with the new owner. We recognized a gain of $0.2 million on the sale. | |||||
•In February 2015, we sold the Bellevue property for $35.4 million and concurrently entered into a management agreement with the new owner. We recognized a gain of $16.2 million on the sale. | |||||
The property and equipment of these properties that are classified as assets held for sale on the December 31, 2014 consolidated balance sheet is detailed in the table below (in thousands): | |||||
December 31, | |||||
2014 | |||||
Buildings and equipment | $ | 16,339 | |||
Landscaping and land improvements | 345 | ||||
Furniture and fixtures | 1,948 | ||||
18,632 | |||||
Less accumulated depreciation and amortization | (8,537 | ) | |||
10,095 | |||||
Land | 11,066 | ||||
Construction in progress | 12 | ||||
Assets held for sale | $ | 21,173 | |||
Discontinued_Operations
Discontinued Operations | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||
Discontinued Operations | Discontinued Operations | ||||||||
There were not any discontinued operations included in the three months ended March 31, 2015. Discontinued operations for March 31, 2014, includes the Red Lion Hotel Eugene in Eugene, Oregon ("Eugene property") for which we ceased operation when we assigned our lease to a third party. Accordingly, all operations of this property have been classified as discontinued operations since the fourth quarter of 2013. | |||||||||
The following table summarizes the results of discontinued operations for the periods indicated (in thousands): | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Revenues | $ | — | $ | 133 | |||||
Operating expenses | — | (289 | ) | ||||||
Hotel facility and land lease | — | (30 | ) | ||||||
Loss from operations of discontinued business units | — | (186 | ) | ||||||
Loss on disposal and impairment of the assets of the discontinued business units | — | (2 | ) | ||||||
Loss from discontinued operations | $ | — | $ | (188 | ) | ||||
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets | |||||||||||||||
Goodwill represents the excess of the estimated fair value of the net assets acquired during business combinations over the net tangible and identifiable intangible assets acquired. Goodwill was recorded in prior years in connection with the acquisitions of franchises and entertainment businesses. | ||||||||||||||||
The Red Lion brand name is an identifiable, indefinite-lived intangible asset that represents the separable legal right to a trade name and associated trademarks acquired in a business combination we entered into in 2001. | ||||||||||||||||
We assess goodwill and the brand name for potential impairments annually as of October 1, or during the year if an event or other circumstance indicates that we may not be able to recover the carrying amount of the assets. We did not impair any goodwill or intangible assets during the three months ended March 31, 2015 or 2014. | ||||||||||||||||
The following table summarizes the balances of goodwill and other intangible assets (in thousands): | ||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||
Goodwill | $ | 8,512 | $ | 8,512 | ||||||||||||
Intangible assets | ||||||||||||||||
Brand name | $ | 6,878 | $ | 6,878 | ||||||||||||
Trademarks | 134 | 134 | ||||||||||||||
Total intangible assets | $ | 7,012 | $ | 7,012 | ||||||||||||
Goodwill and other intangible assets attributable to each of our business segments were as follows (in thousands): | ||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||
Other | Other | |||||||||||||||
Goodwill | Intangibles | Goodwill | Intangibles | |||||||||||||
Company operated hotels | $ | — | $ | 4,659 | $ | — | $ | 4,659 | ||||||||
Franchised hotels | 5,351 | 2,347 | 5,351 | 2,347 | ||||||||||||
Entertainment | 3,161 | 6 | 3,161 | 6 | ||||||||||||
Total | $ | 8,512 | $ | 7,012 | $ | 8,512 | $ | 7,012 | ||||||||
LongTerm_Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt |
RL Venture | |
In January 2015, RL Venture Holding LLC ("RL Venture Holding"), a wholly-owned subsidiary of RL Venture, and each of its 12 wholly-owned subsidiaries entered into a loan agreement with Pacific Western Bank. The original principal amount of the loan was $53.8 million with an additional $26.2 million to be drawn over a two-year period to cover improvements related to the 12 hotels. There were no draws made in the three months ended March 31, 2015. At March 31, 2015, there were unamortized debt issuance fees of $2.3 million. | |
The loan matures in January 2019 and has a one-year extension option. Interest under the advanced portions of the loan is payable monthly at LIBOR plus 4.75%. Principal payments begin in January 2017 in an amount necessary to repay the outstanding principal balance over a twenty-five year amortization period. | |
The loan requires us to comply with customary reporting and operating covenants applicable to RL Venture, including requirements relating to debt service loan coverage ratios. It also includes customary events of default. We were in compliance with these covenants at March 31, 2015. | |
Wells Fargo | |
In January 2015, in connection with the RL Venture transaction, we repaid the outstanding balance of our Wells Fargo term loan. We recognized a loss of $1.2 million as "Early retirement of debt" on the Consolidated Statement of Comprehensive Income (Loss) related to termination fees and write-off of the previously recorded prepaid debt fees and unamortized debt discount balances. | |
In January 2015, in connection with the sale of the Bellevue property, we terminated the $10 million credit facility associated with the term loan. There was no impact on our financial statements. | |
Debentures of Red Lion Hotels Capital Trust | |
Together with the Trust, we completed a public offering of $46.0 million of Trust Preferred securities in 2004. The securities are listed on the New York Stock Exchange and entitle holders to cumulative cash distributions at a 9.5% annual rate with maturity in February 2044. The cost of the offering totaled $2.3 million, which the Trust paid through an advance by us. The advance to the Trust is included with other noncurrent assets on our consolidated balance sheets. | |
We borrowed all of the proceeds from the offering, including our original 3% trust common investment of $1.4 million, on the same day through 9.5% debentures that are included as a long-term liability on our consolidated balance sheets. The debentures mature in 2044 and their payment terms mirror the distribution terms of the trust securities. The debenture agreement required the mandatory redemption of 35% of the then-outstanding trust securities at 105% of issued value if we completed an offering of common shares with gross proceeds of greater than $50 million. In accordance therewith and in connection with a common stock offering in May 2006, we repaid approximately $16.6 million of the debentures due the Trust. The Trust then redeemed 35% of the outstanding trust preferred securities and trust common securities at a price of $26.25 per share, a 5% premium over the issued value of the securities. Of the $16.6 million, approximately $0.5 million was received back by us for our trust common securities and was reflected as a reduction of our investment in the Trust. At March 31, 2015 and December 31, 2014, debentures due the Trust totaled $30.8 million. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments |
We do not enter into derivative transactions for trading purposes, but rather to hedge our exposure to interest rate fluctuations. We manage our floating rate debt using interest rate swaps in order to reduce our exposure to the impact of changing interest rates and future cash outflows for interest. | |
RL Venture | |
As required under our RL Venture loan, we entered into an interest rate cap with Commonwealth Bank of Australia to hedge our interest rate exposure. The cap had an original notional amount of $80.0 million and a fixed rate of 5.0%. The cap expires on January 15, 2018. | |
We estimate the fair value of our interest rate cap using standard calculations that use as their basis readily available observable market parameters. This option-pricing technique utilizes a one-month LIBOR forward yield curve, obtained from an independent external service. At March 31, 2015, the valuation of the interest rate cap resulted in the recognition of a swap asset totaling $0.1 million, which is included in "Other assets, net" on the Consolidated Balance Sheet. | |
Wells Fargo | |
In January 2015, in connection with the early retirement of the Wells Fargo credit facility, we settled and terminated the interest rate swap with Wells Fargo. The outstanding notional amount at the time of the termination was approximately $16.2 million. We recognized a loss of $0.4 million as "Early retirement of debt" on the Consolidated Statement of Income (Loss) related to termination fees and write-off of the previously recorded fair value and accumulated other comprehensive income (loss) balances. See Note 9 for additional information. |
Business_Segments
Business Segments | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||
Business Segments | Business Segments | ||||||||||||||||||||
As of March 31, 2015, we had three reporting segments: company operated hotels, franchised hotels and entertainment. The “other” segment consists of miscellaneous revenues and expenses, cash and cash equivalents, certain receivables and certain property and equipment which are not specifically associated with an operating segment. Management reviews and evaluates the operating segments exclusive of interest expense and income taxes; therefore, those two items have not been allocated to the segments. All balances have been presented after the elimination of inter-segment and intra-segment revenues and expenses. | |||||||||||||||||||||
Selected financial information is provided below (in thousands): | |||||||||||||||||||||
Three months ended March 31, 2015 | Company Operated Hotels | Franchised Hotels | Entertainment | Other | Total | ||||||||||||||||
Revenue | $ | 23,935 | $ | 2,093 | $ | 3,677 | $ | 10 | $ | 29,715 | |||||||||||
Segment operating expenses | $ | 21,085 | $ | 2,377 | $ | 3,126 | $ | 8 | $ | 26,596 | |||||||||||
Depreciation and amortization | 2,761 | 11 | 74 | 130 | 2,976 | ||||||||||||||||
Other expenses | (14,889 | ) | — | — | 2,398 | (12,491 | ) | ||||||||||||||
Operating income (loss) | 14,978 | (295 | ) | 477 | (2,526 | ) | 12,634 | ||||||||||||||
Interest expense | (721 | ) | — | — | (781 | ) | (1,502 | ) | |||||||||||||
Loss on early retirement of debt | — | — | — | (1,159 | ) | (1,159 | ) | ||||||||||||||
Other income | — | 2 | 47 | 223 | 272 | ||||||||||||||||
Income tax expense | — | — | — | (112 | ) | (112 | ) | ||||||||||||||
Income (loss) from continuing operations | 14,257 | (293 | ) | 524 | (4,355 | ) | 10,133 | ||||||||||||||
Discontinued operations | — | — | — | — | — | ||||||||||||||||
Net Income (loss) | 14,257 | (293 | ) | 524 | (4,355 | ) | 10,133 | ||||||||||||||
Less net (income) loss attributable to noncontrolling interest | 30 | — | — | — | 30 | ||||||||||||||||
Net income (loss) attributable to RLHC | $ | 14,287 | $ | (293 | ) | $ | 524 | $ | (4,355 | ) | $ | 10,163 | |||||||||
Capital expenditures | $ | 1,849 | $ | — | $ | 88 | $ | 297 | $ | 2,234 | |||||||||||
Identifiable assets | $ | 249,754 | $ | 10,306 | $ | 5,592 | $ | 11,948 | $ | 277,600 | |||||||||||
Three months ended March 31, 2014 | Company Operated Hotels | Franchise Hotels | Entertainment | Other | Total | ||||||||||||||||
Revenue | $ | 25,924 | $ | 1,526 | $ | 5,105 | $ | 33 | $ | 32,588 | |||||||||||
Segment operating expenses | $ | 22,814 | $ | 1,442 | $ | 4,057 | $ | 114 | $ | 28,427 | |||||||||||
Depreciation and amortization | 2,869 | 12 | 84 | 178 | 3,143 | ||||||||||||||||
Other expenses | 1,079 | 2,114 | 3,193 | ||||||||||||||||||
Operating income (loss) | (838 | ) | 72 | 964 | (2,373 | ) | (2,175 | ) | |||||||||||||
Interest expense | — | — | — | (1,217 | ) | (1,217 | ) | ||||||||||||||
Loss on early retirement of debt | — | — | — | — | — | ||||||||||||||||
Other income | — | — | — | 93 | 93 | ||||||||||||||||
Income tax (expense) benefit | — | — | — | (31 | ) | (31 | ) | ||||||||||||||
Income (loss) from continuing operations | (838 | ) | 72 | 964 | (3,528 | ) | (3,330 | ) | |||||||||||||
Discontinued operations | — | — | — | (188 | ) | (188 | ) | ||||||||||||||
Net Income (loss) | (838 | ) | 72 | 964 | (3,716 | ) | (3,518 | ) | |||||||||||||
Less net (income) loss attributable to noncontrolling interest | — | — | — | — | — | ||||||||||||||||
Net income (loss) attributable to RLHC | $ | (838 | ) | $ | 72 | $ | 964 | $ | (3,716 | ) | $ | (3,518 | ) | ||||||||
Capital expenditures | $ | 3,322 | $ | 9 | $ | 139 | $ | (368 | ) | $ | 3,102 | ||||||||||
Identifiable assets as December 31, 2014 | $ | 190,332 | $ | 9,807 | $ | 6,161 | $ | 16,727 | $ | 223,027 | |||||||||||
Earnings_Loss_Per_Share
Earnings (Loss) Per Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings (Loss) Per Share | Earnings (Loss) Per Share | ||||||||
The following table presents a reconciliation of the numerators and denominators used in the basic and diluted net income (loss) per share computations for the three months ended March 31, 2015 and 2014 (in thousands, except per share amounts): | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Numerator - basic and diluted: | |||||||||
Net income (loss) from continuing operations | $ | 10,133 | $ | (3,330 | ) | ||||
Less: net (income) loss attributable to noncontrolling interest | $ | 30 | $ | — | |||||
Income (loss) from continuing operations attributable to Red Lion Hotels Corporation | $ | 10,163 | $ | (3,330 | ) | ||||
Income (loss) from discontinued operations | — | (188 | ) | ||||||
Net income (loss) attributable to Red Lion Hotels Corporation | $ | 10,163 | $ | (3,518 | ) | ||||
Denominator: | |||||||||
Weighted average shares - basic | 19,895 | 19,716 | |||||||
Weighted average shares - diluted | 20,067 | 19,716 | |||||||
Earnings (loss) per share - basic | |||||||||
Income (loss) from continuing operations attributable to Red Lion Hotels Corporation | $ | 0.51 | $ | (0.17 | ) | ||||
Income (loss) from discontinued operations | $ | — | $ | (0.01 | ) | ||||
Net income (loss) attributable to Red Lion Hotels Corporation | $ | 0.51 | $ | (0.18 | ) | ||||
Earnings (loss) per share - diluted | |||||||||
Income (loss) from continuing operations attributable to Red Lion Hotels Corporation | $ | 0.51 | $ | (0.17 | ) | ||||
Income (loss) from discontinued operations | $ | — | $ | (0.01 | ) | ||||
Net income (loss) attributable to Red Lion Hotels Corporation | $ | 0.51 | $ | (0.18 | ) | ||||
For the three months ended March 31, 2015, all of the 75,176 options to purchase common shares and 469,424 of the 640,459 restricted stock units outstanding and warrants to purchase 442,533 common shares were not included in the diluted per share calculation as they were antidilutive. For the three months ended March 31, 2014, all of the 118,127 options to purchase common shares and all of the 314,618 restricted stock units outstanding were not included in the diluted per share calculation as they were antidilutive. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
For the three months ended March 31, 2015 and 2014, we reported an income tax expense of $112 thousand and $31 thousand, respectively. The income tax provision varies from the statutory rate primarily due to a full valuation allowance against our deferred assets. | |
We have federal operating loss carryforwards ,which will expire beginning in 2033, state operating loss carryforwards, which will expire beginning in 2017, and tax credit carryforwards, which will begin to expire in 2024. |
Stockholders_Equity
Stockholders' Equity | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||
Stockholders' Equity | Stockholders' Equity | ||||||||||||||||||||||||||
Stock Incentive Plans | |||||||||||||||||||||||||||
The 2006 Stock Incentive Plan authorizes the grant or issuance of various option and other awards including restricted stock units and other stock-based compensation. The plan was approved by our shareholders and allowed awards of 2.0 million shares, subject to adjustments for stock splits, stock dividends and similar events. As of March 31, 2015, there were 456,130 shares of common stock available for issuance pursuant to future stock option grants or other awards under the 2006 plan. | |||||||||||||||||||||||||||
Stock Options | |||||||||||||||||||||||||||
In the three months ended March 31, 2015 and 2014 we recognized no compensation expense related to options. | |||||||||||||||||||||||||||
A summary of stock option activity for the three months ended March 31, 2015, is as follows: | |||||||||||||||||||||||||||
Number | Weighted | ||||||||||||||||||||||||||
of Shares | Average | ||||||||||||||||||||||||||
Exercise | |||||||||||||||||||||||||||
Price | |||||||||||||||||||||||||||
Balance, December 31, 2014 | 75,176 | $ | 10.27 | ||||||||||||||||||||||||
Options granted | — | $ | — | ||||||||||||||||||||||||
Options exercised | — | $ | — | ||||||||||||||||||||||||
Options forfeited | — | $ | — | ||||||||||||||||||||||||
Balance, March 31, 2015 | 75,176 | $ | 10.27 | ||||||||||||||||||||||||
Exercisable, March 31, 2015 | 75,176 | $ | 10.27 | ||||||||||||||||||||||||
Additional information regarding stock options outstanding and exercisable as of March 31, 2015, is as follows: | |||||||||||||||||||||||||||
Exercise | Number | Weighted | Expiration | Weighted | Aggregate | Number | Weighted | Aggregate | |||||||||||||||||||
Price | Outstanding | Average | Date | Average | Intrinsic | Exercisable | Average | Intrinsic | |||||||||||||||||||
Remaining | Exercise | Value(1) | Exercise | Value(1) | |||||||||||||||||||||||
Contractual | Price | Price | |||||||||||||||||||||||||
Life (Years) | |||||||||||||||||||||||||||
$7.46 | 3,500 | 0.61 | 2015 | $ | 7.46 | $ | — | 3,500 | $ | 7.46 | $ | — | |||||||||||||||
$8.74 | 40,836 | 3.14 | 2018 | 8.74 | — | 40,836 | 8.74 | — | |||||||||||||||||||
$12.21 | 15,195 | 1.64 | 2016 | 12.21 | — | 15,195 | 12.21 | — | |||||||||||||||||||
$13.00 | 15,645 | 2.13 | 2017 | 13 | — | 15,645 | 13 | — | |||||||||||||||||||
75,176 | 2.51 | 2015-2018 | $ | 10.27 | $ | — | 75,176 | $ | 10.27 | $ | — | ||||||||||||||||
__________ | |||||||||||||||||||||||||||
-1 | The aggregate intrinsic value is before applicable income taxes and represents the amount option recipients would have received if all options had been fully vested and exercised on the last trading day of the first three months of 2015, or March 31, 2015, based upon our closing stock price on that date of $6.67. | ||||||||||||||||||||||||||
Restricted Stock Units, Shares Issued as Compensation | |||||||||||||||||||||||||||
As of March 31, 2015 and 2014, there were 640,459 and 314,618 unvested restricted stock units outstanding. Since we began issuing restricted stock units, approximately 22.0% of total units granted have been forfeited. In the first quarter of 2015, we recognized approximately $0.2 million in compensation expense related to restricted stock units compared to $0.2 million in the comparable period in 2014. As the restricted stock units vest, we expect to recognize approximately $2.8 million in additional compensation expense over a weighted average period of 41 months, including $0.7 million during the remainder of 2015. | |||||||||||||||||||||||||||
A summary of restricted stock unit activity for the three months ended March 31, 2015, is as follows: | |||||||||||||||||||||||||||
Number | Weighted | ||||||||||||||||||||||||||
of Shares | Average | ||||||||||||||||||||||||||
Grant Date | |||||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||||
Balance, December 31, 2014 | 398,513 | $ | 7.32 | ||||||||||||||||||||||||
Granted | 270,383 | $ | 6.8 | ||||||||||||||||||||||||
Vested | (24,601 | ) | $ | 5.8 | |||||||||||||||||||||||
Forfeited | (3,836 | ) | $ | 6.25 | |||||||||||||||||||||||
Balance, March 31, 2015 | 640,459 | $ | 6.4 | ||||||||||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||||||||||||
In January 2008, we adopted the 2008 employee stock purchase plan (the “2008 ESPP”) upon the expiration of its predecessor plan. Under the 2008 ESPP, a total of 300,000 shares of common stock are authorized for purchase by eligible employees at a discount through payroll deductions. No employee may purchase more than $25,000 worth of shares in any calendar year, or more than 10,000 shares during any six-month purchase period under the plan. As allowed under the 2008 ESPP, a participant may elect to withdraw from the plan, effective for the purchase period in progress at the time of the election with all accumulated payroll deductions returned to the participant at the time of withdrawal. During the three months ended March 31, 2015 and 2014, 10,614 and 7,405 shares were issued to participants under the terms of the plan, respectively. | |||||||||||||||||||||||||||
Warrants | |||||||||||||||||||||||||||
In January 2015, in connection with Shelbourne Falcon’s purchase of equity interests in RL Venture, the Company issued to Shelbourne a warrant to purchase 442,533 shares of the Company’s common stock. The warrant has a five year term from the date of issuance and a per share exercise price of $6.78. The warrant is classified as equity due to share settlement upon exercise. Accordingly, the estimated fair value of the warrant was recorded in additional paid in capital upon issuance and we do not recognize subsequent changes in fair value in our financial statements. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | ||||||||||||||||
Applicable accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). We measure our assets and liabilities using inputs from the following three levels of the fair value hierarchy: | |||||||||||||||||
Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date. | |||||||||||||||||
Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). | |||||||||||||||||
Level 3 includes unobservable inputs that reflect assumptions about what factors market participants would use in pricing the asset or liability. We develop these inputs based on the best information available, including our own data. | |||||||||||||||||
Estimated fair values of financial instruments (in thousands) are shown in the table below. The carrying amounts for cash and cash equivalents, accounts receivable and current liabilities are reasonable estimates of their fair values. The carrying amounts of our current notes receivable are reasonable estimates of their fair values due to the short nature of the loans (they are expected to be satisfied within a year). We estimate the fair value of our long-term debt, excluding leases, using expected future payments discounted at risk-adjusted rates, both of which are Level 3 inputs. The debentures are valued at the closing price on March 31, 2015, of the underlying trust preferred securities on the New York Stock Exchange, which was a directly observable Level 1 input. The fair values provided below are not necessarily indicative of the amounts we or the debt holders could realize in a current market exchange. In addition, potential income tax ramifications related to the realization of gains and losses that would be incurred in an actual sale or settlement have not been taken into consideration. | |||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||
Financial assets: | |||||||||||||||||
Cash and cash equivalents and restricted cash(1) | $ | 82,198 | $ | 82,198 | $ | 5,351 | $ | 5,351 | |||||||||
Accounts receivable(1) | $ | 7,063 | $ | 7,063 | $ | 6,752 | $ | 6,752 | |||||||||
Notes receivable | $ | 5,203 | $ | 5,203 | $ | 5,284 | $ | 5,284 | |||||||||
Financial liabilities: | |||||||||||||||||
Current liabilities, excluding debt(1) | $ | 20,882 | $ | 20,882 | $ | 18,469 | $ | 18,469 | |||||||||
Total debt | $ | 51,508 | $ | 57,456 | $ | 29,873 | $ | 30,683 | |||||||||
Debentures | $ | 30,825 | $ | 31,759 | $ | 30,825 | $ | 31,639 | |||||||||
__________ | |||||||||||||||||
-1 | Includes the cash, accounts receivable, and current liabilities of discontinued operations held for sale as of December 31, 2014. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies |
At any given time we are subject to claims and actions incidental to the operations of our business. Based on information currently available, we do not expect that any sums we may receive or have to pay in connection with any legal proceeding would have a materially adverse effect on our consolidated financial position or net cash flow. | |
Due to our equity method investment in a 19.9% owned real estate venture, we are considered a guarantor of the mortgage for the building associated with that investment. We would be obligated to pay a portion of this mortgage in the event the real estate venture were unable to meet its principal or interest payment obligations. As of March 31, 2015, the maximum amount payable under this guarantee was approximately $1.9 million, which represents 19.9% of the outstanding mortgage balance. At each reporting date, it was not probable that we would be required to pay any of this amount; thus we have not accrued a liability for any portion of this obligation in our March 31, 2015 or December 31, 2014 financial statements. | |
The terms of our lease for the Red Lion Hotel Vancouver (at the Quay) include a required lease termination fee of $3.0 million upon termination of the lease, but no later than December 31, 2015. This payment is subject to a letter of credit which is secured by a certificate of deposit, which is included in "Restricted cash" on the Consolidated Balance Sheet. |
RelatedParty_Transactions
Related-Party Transactions | 3 Months Ended |
Mar. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions |
RL Venture has agreed to pay to Shelbourne Falcon an investor relations fee each month equal to 0.50% of its total aggregate revenue. Columbia Pacific Opportunity Fund, LP, the Company's largest shareholder, is an investor in Shelbourne Falcon. | |
RL Venture has also agreed to pay CPA Development, LLC, an affiliate of Columbia Pacific Opportunity Fund, LP, a construction management fee in aggregate amount of $200,000. During the three months ended March 31, 2015, RL Venture paid $18,200 of the construction management fee. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
In April 2015, our subsidiary RL Baltimore, LLC ("RL Baltimore") obtained a new mortgage loan from PFP Holding Company IV LLC, an affiliate of Prime Finance, secured by the Hotel RL Baltimore Inner Harbor. The initial principal amount of the loan was $10.1 million and the lender has agreed to advance an additional $3.2 million to cover expenses related to improvements to the hotel. The loan has a three-year term with two one-year extension options, and interest under the advanced portions of the loan will be calculated at LIBOR plus 6.25%. Interest only payments are due monthly commencing May 2015. Monthly principal payments of $16,000 are required beginning in May 2018. In the event of any prepayment, we are required to pay the lender interest that would have been paid through the maturity date. As required under the loan, we entered into an interest rate cap with Commonwealth Bank of Australia to hedge our interest rate exposure. The cap had an original notional amount of $13.3 million and a fixed rate of 3.0%. The loan agreement contains customary reporting and operating covenants applicable to the joint venture, including requirements for lender approval of annual operating and capital budgets, under certain conditions. | |
Also in April 2015, we sold a 21.0 percent member interest in RLS Balt Venture LLC, the parent to RL Baltimore, to Shelbourne Falcon Charm City Investors LLC ("Shelbourne Falcon II"), an entity led by Shelbourne Capital LLC. Shelbourne Falcon II has the option to purchase an additional 24.0 percent ownership for $2.3 million until December 31, 2015. Hotel RL Baltimore will continue to be managed by our wholly owned subsidiary, RL Management, under an initial five-year management contract, with three five-year extensions. This hotel will continue to be consolidated as the joint venture is considered a variable interest entity and we are the primary beneficiary. | |
Also in April 2015, we purchased all of the intellectual property rights and franchise license agreements on 73 GuestHouse International and Settle Inn & Suites properties across the U.S. for $8.5 million plus a potential additional payment of up to $1.5 million. |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The unaudited consolidated financial statements included herein have been prepared by us pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and in accordance with generally accepted accounting principles in the United States of America (“GAAP”). Certain information and footnote disclosures normally included in financial statements have been condensed or omitted as permitted by such rules and regulations. |
The consolidated balance sheet as of December 31, 2014 has been compiled from the audited balance sheet as of such date. We believe the disclosures included herein are adequate; however, they should be read in conjunction with the consolidated financial statements and the notes thereto for the year ended December 31, 2014, previously filed with the SEC on Form 10-K. | |
In the opinion of management, these unaudited consolidated financial statements contain all of the adjustments of a normal and recurring nature necessary to present fairly our consolidated financial position at March 31, 2015, the consolidated statements of comprehensive income (loss) for the three months ended March 31, 2015 and 2014, and the consolidated cash flows for the three months ended March 31, 2015 and 2014. The comprehensive income (loss) for the periods presented may not be indicative of that which may be expected for a full year. | |
Management makes estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements, the reported amounts of revenues and expenses during the reporting period and the disclosures of contingent liabilities. Actual results could materially differ from those estimates and interim results may not be indicative of fiscal year performance because of seasonal and short-term variations. | |
Changes to Significant Accounting Policies | Changes to Significant Accounting Policies |
We recognize other revenue and costs from managed properties when we incur the related reimbursable costs. These costs primarily consist of payroll and related expenses at managed properties where we are the employer. As these costs have no added markup, the revenue and related expense have no impact on either our operating or net income. | |
Reclassifications | Reclassifications |
Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. Except as otherwise described, these reclassifications had no effect on reported income/losses, total assets, total liabilities, or stockholders’ equity as otherwise reported. | |
Recent Accounting Pronouncements | In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers, which is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 may be applied using either a full retrospective or a modified retrospective approach and is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and early adoption is not permitted. We are in the process of evaluating this guidance and our method of adoption. |
In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, which changes the consolidation analysis for both the variable interest model and for the voting model for limited partnerships and similar entities. ASU 2015-02 is effective for annual and interim periods beginning after December 15, 2015 and early application is permitted. ASU 2015-02 provides for one of two methods of transition: retrospective application to each prior period presented; or recognition of the cumulative effect of retrospective application of the new standard in the period of initial application. We are in the process of evaluating this guidance and our method of adoption. | |
In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. ASU 2015-03 is effective for annual and interim periods beginning after December 15, 2015 and early application is permitted. We have early adopted this guidance in the first quarter of 2015. We utilized retrospective application of the new standard and reclassified prior period balances of prepaid debt fees to debt discount. | |
In April 2015, the FASB issued ASU 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement, which provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance does not change the accounting for a customer’s accounting for service contracts. ASU 2015-05 is effective for annual and interim reporting periods beginning after December 15, 2015. We are in the process of evaluating this guidance and our method of adoption. | |
Management has assessed the potential impact of other recently issued, but not yet effective, accounting standards and determined that the provisions are either not applicable to our Company, or are not anticipated to have a material impact on our consolidated financial statements. |
Variable_Interest_Entities_Tab
Variable Interest Entities (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Variable Interest Entities [Abstract] | ||||
Schedule of Condensed Financial Statements | RL Venture is considered a significant subsidiary; therefore the following condensed financial statements are presented to satisfy disclosure requirements of Rule 3-05 of Regulation S-X. The assets can only be used by RL Venture and the liabilities, with the exception of the loan, are non-recourse to our general credit or assets. The loan is non-recourse except that several investors in RL Venture, including us, are guarantors regarding the completion of certain improvements to the hotels, environmental covenants in the loan agreement, losses incurred by RL Venture and any event of bankruptcy involving RL Venture or any of its subsidiaries. | |||
Condensed Balance Sheet | As of | |||
March 31, 2015 | ||||
Assets: | ||||
Cash and restricted cash | $ | 1,974 | ||
Accounts receivable, net | 1,071 | |||
Inventories | 421 | |||
Prepaid expenses and other assets | 801 | |||
Property and equipment, net | 109,581 | |||
Total assets | $ | 113,848 | ||
Liabilities: | ||||
Accounts payable | $ | 1,465 | ||
Accrued payroll and related benefits | 1,328 | |||
Other accrued expenses | 1,578 | |||
Long-term debt | 51,516 | |||
Total liabilities | 55,887 | |||
Shareholders' equity | 57,961 | |||
Total liabilities and stockholders' equity | $ | 113,848 | ||
Condensed Statement of Comprehensive Income (Loss) | Three months ended | |||
31-Mar-15 | ||||
Hotel revenue | $ | 13,552 | ||
Hotel operating expenses | 9,832 | |||
Depreciation and amortization | 1,666 | |||
General and administrative expenses | 1,385 | |||
Other expenses | 14 | |||
Operating income (loss) | 655 | |||
Interest expense | 721 | |||
Net income (loss) | $ | (66 | ) |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Schedule of Property, Plant and Equipment | Property and equipment is summarized as follows (in thousands): | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Buildings and equipment | $ | 182,360 | $ | 182,273 | |||||
Landscaping and land improvements | 6,943 | 6,943 | |||||||
Furniture and fixtures | 31,910 | 31,910 | |||||||
221,213 | 221,126 | ||||||||
Less accumulated depreciation | (120,943 | ) | (117,968 | ) | |||||
100,270 | 103,158 | ||||||||
Land | 38,891 | 39,087 | |||||||
Construction in progress | 20,307 | 18,165 | |||||||
Property and equipment, net | $ | 159,468 | $ | 160,410 | |||||
Assets_Held_for_Sale_Tables
Assets Held for Sale (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Property, Plant and Equipment [Abstract] | |||||
Schedule of Property and Equipment, Assets Held for Sale | The property and equipment of these properties that are classified as assets held for sale on the December 31, 2014 consolidated balance sheet is detailed in the table below (in thousands): | ||||
December 31, | |||||
2014 | |||||
Buildings and equipment | $ | 16,339 | |||
Landscaping and land improvements | 345 | ||||
Furniture and fixtures | 1,948 | ||||
18,632 | |||||
Less accumulated depreciation and amortization | (8,537 | ) | |||
10,095 | |||||
Land | 11,066 | ||||
Construction in progress | 12 | ||||
Assets held for sale | $ | 21,173 | |||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Balance Sheet and Income Statement | The following table summarizes the results of discontinued operations for the periods indicated (in thousands): | ||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Revenues | $ | — | $ | 133 | |||||
Operating expenses | — | (289 | ) | ||||||
Hotel facility and land lease | — | (30 | ) | ||||||
Loss from operations of discontinued business units | — | (186 | ) | ||||||
Loss on disposal and impairment of the assets of the discontinued business units | — | (2 | ) | ||||||
Loss from discontinued operations | $ | — | $ | (188 | ) | ||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Schedule of Goodwill and Other Intangibles | The following table summarizes the balances of goodwill and other intangible assets (in thousands): | |||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||
Goodwill | $ | 8,512 | $ | 8,512 | ||||||||||||
Intangible assets | ||||||||||||||||
Brand name | $ | 6,878 | $ | 6,878 | ||||||||||||
Trademarks | 134 | 134 | ||||||||||||||
Total intangible assets | $ | 7,012 | $ | 7,012 | ||||||||||||
Goodwill and other intangible assets attributable to each of our business segments were as follows (in thousands): | ||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||
Other | Other | |||||||||||||||
Goodwill | Intangibles | Goodwill | Intangibles | |||||||||||||
Company operated hotels | $ | — | $ | 4,659 | $ | — | $ | 4,659 | ||||||||
Franchised hotels | 5,351 | 2,347 | 5,351 | 2,347 | ||||||||||||
Entertainment | 3,161 | 6 | 3,161 | 6 | ||||||||||||
Total | $ | 8,512 | $ | 7,012 | $ | 8,512 | $ | 7,012 | ||||||||
Business_Segments_Tables
Business Segments (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||
Schedule of Segment Reporting Information | Selected financial information is provided below (in thousands): | ||||||||||||||||||||
Three months ended March 31, 2015 | Company Operated Hotels | Franchised Hotels | Entertainment | Other | Total | ||||||||||||||||
Revenue | $ | 23,935 | $ | 2,093 | $ | 3,677 | $ | 10 | $ | 29,715 | |||||||||||
Segment operating expenses | $ | 21,085 | $ | 2,377 | $ | 3,126 | $ | 8 | $ | 26,596 | |||||||||||
Depreciation and amortization | 2,761 | 11 | 74 | 130 | 2,976 | ||||||||||||||||
Other expenses | (14,889 | ) | — | — | 2,398 | (12,491 | ) | ||||||||||||||
Operating income (loss) | 14,978 | (295 | ) | 477 | (2,526 | ) | 12,634 | ||||||||||||||
Interest expense | (721 | ) | — | — | (781 | ) | (1,502 | ) | |||||||||||||
Loss on early retirement of debt | — | — | — | (1,159 | ) | (1,159 | ) | ||||||||||||||
Other income | — | 2 | 47 | 223 | 272 | ||||||||||||||||
Income tax expense | — | — | — | (112 | ) | (112 | ) | ||||||||||||||
Income (loss) from continuing operations | 14,257 | (293 | ) | 524 | (4,355 | ) | 10,133 | ||||||||||||||
Discontinued operations | — | — | — | — | — | ||||||||||||||||
Net Income (loss) | 14,257 | (293 | ) | 524 | (4,355 | ) | 10,133 | ||||||||||||||
Less net (income) loss attributable to noncontrolling interest | 30 | — | — | — | 30 | ||||||||||||||||
Net income (loss) attributable to RLHC | $ | 14,287 | $ | (293 | ) | $ | 524 | $ | (4,355 | ) | $ | 10,163 | |||||||||
Capital expenditures | $ | 1,849 | $ | — | $ | 88 | $ | 297 | $ | 2,234 | |||||||||||
Identifiable assets | $ | 249,754 | $ | 10,306 | $ | 5,592 | $ | 11,948 | $ | 277,600 | |||||||||||
Three months ended March 31, 2014 | Company Operated Hotels | Franchise Hotels | Entertainment | Other | Total | ||||||||||||||||
Revenue | $ | 25,924 | $ | 1,526 | $ | 5,105 | $ | 33 | $ | 32,588 | |||||||||||
Segment operating expenses | $ | 22,814 | $ | 1,442 | $ | 4,057 | $ | 114 | $ | 28,427 | |||||||||||
Depreciation and amortization | 2,869 | 12 | 84 | 178 | 3,143 | ||||||||||||||||
Other expenses | 1,079 | 2,114 | 3,193 | ||||||||||||||||||
Operating income (loss) | (838 | ) | 72 | 964 | (2,373 | ) | (2,175 | ) | |||||||||||||
Interest expense | — | — | — | (1,217 | ) | (1,217 | ) | ||||||||||||||
Loss on early retirement of debt | — | — | — | — | — | ||||||||||||||||
Other income | — | — | — | 93 | 93 | ||||||||||||||||
Income tax (expense) benefit | — | — | — | (31 | ) | (31 | ) | ||||||||||||||
Income (loss) from continuing operations | (838 | ) | 72 | 964 | (3,528 | ) | (3,330 | ) | |||||||||||||
Discontinued operations | — | — | — | (188 | ) | (188 | ) | ||||||||||||||
Net Income (loss) | (838 | ) | 72 | 964 | (3,716 | ) | (3,518 | ) | |||||||||||||
Less net (income) loss attributable to noncontrolling interest | — | — | — | — | — | ||||||||||||||||
Net income (loss) attributable to RLHC | $ | (838 | ) | $ | 72 | $ | 964 | $ | (3,716 | ) | $ | (3,518 | ) | ||||||||
Capital expenditures | $ | 3,322 | $ | 9 | $ | 139 | $ | (368 | ) | $ | 3,102 | ||||||||||
Identifiable assets as December 31, 2014 | $ | 190,332 | $ | 9,807 | $ | 6,161 | $ | 16,727 | $ | 223,027 | |||||||||||
Earnings_Loss_Per_Share_Tables
Earnings (Loss) Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table presents a reconciliation of the numerators and denominators used in the basic and diluted net income (loss) per share computations for the three months ended March 31, 2015 and 2014 (in thousands, except per share amounts): | ||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Numerator - basic and diluted: | |||||||||
Net income (loss) from continuing operations | $ | 10,133 | $ | (3,330 | ) | ||||
Less: net (income) loss attributable to noncontrolling interest | $ | 30 | $ | — | |||||
Income (loss) from continuing operations attributable to Red Lion Hotels Corporation | $ | 10,163 | $ | (3,330 | ) | ||||
Income (loss) from discontinued operations | — | (188 | ) | ||||||
Net income (loss) attributable to Red Lion Hotels Corporation | $ | 10,163 | $ | (3,518 | ) | ||||
Denominator: | |||||||||
Weighted average shares - basic | 19,895 | 19,716 | |||||||
Weighted average shares - diluted | 20,067 | 19,716 | |||||||
Earnings (loss) per share - basic | |||||||||
Income (loss) from continuing operations attributable to Red Lion Hotels Corporation | $ | 0.51 | $ | (0.17 | ) | ||||
Income (loss) from discontinued operations | $ | — | $ | (0.01 | ) | ||||
Net income (loss) attributable to Red Lion Hotels Corporation | $ | 0.51 | $ | (0.18 | ) | ||||
Earnings (loss) per share - diluted | |||||||||
Income (loss) from continuing operations attributable to Red Lion Hotels Corporation | $ | 0.51 | $ | (0.17 | ) | ||||
Income (loss) from discontinued operations | $ | — | $ | (0.01 | ) | ||||
Net income (loss) attributable to Red Lion Hotels Corporation | $ | 0.51 | $ | (0.18 | ) | ||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||
Schedule of Stock Options Activity | A summary of stock option activity for the three months ended March 31, 2015, is as follows: | ||||||||||||||||||||||||||
Number | Weighted | ||||||||||||||||||||||||||
of Shares | Average | ||||||||||||||||||||||||||
Exercise | |||||||||||||||||||||||||||
Price | |||||||||||||||||||||||||||
Balance, December 31, 2014 | 75,176 | $ | 10.27 | ||||||||||||||||||||||||
Options granted | — | $ | — | ||||||||||||||||||||||||
Options exercised | — | $ | — | ||||||||||||||||||||||||
Options forfeited | — | $ | — | ||||||||||||||||||||||||
Balance, March 31, 2015 | 75,176 | $ | 10.27 | ||||||||||||||||||||||||
Exercisable, March 31, 2015 | 75,176 | $ | 10.27 | ||||||||||||||||||||||||
Schedule of Stock Option Plans, by Exercise Price Range | Additional information regarding stock options outstanding and exercisable as of March 31, 2015, is as follows: | ||||||||||||||||||||||||||
Exercise | Number | Weighted | Expiration | Weighted | Aggregate | Number | Weighted | Aggregate | |||||||||||||||||||
Price | Outstanding | Average | Date | Average | Intrinsic | Exercisable | Average | Intrinsic | |||||||||||||||||||
Remaining | Exercise | Value(1) | Exercise | Value(1) | |||||||||||||||||||||||
Contractual | Price | Price | |||||||||||||||||||||||||
Life (Years) | |||||||||||||||||||||||||||
$7.46 | 3,500 | 0.61 | 2015 | $ | 7.46 | $ | — | 3,500 | $ | 7.46 | $ | — | |||||||||||||||
$8.74 | 40,836 | 3.14 | 2018 | 8.74 | — | 40,836 | 8.74 | — | |||||||||||||||||||
$12.21 | 15,195 | 1.64 | 2016 | 12.21 | — | 15,195 | 12.21 | — | |||||||||||||||||||
$13.00 | 15,645 | 2.13 | 2017 | 13 | — | 15,645 | 13 | — | |||||||||||||||||||
75,176 | 2.51 | 2015-2018 | $ | 10.27 | $ | — | 75,176 | $ | 10.27 | $ | — | ||||||||||||||||
__________ | |||||||||||||||||||||||||||
-1 | The aggregate intrinsic value is before applicable income taxes and represents the amount option recipients would have received if all options had been fully vested and exercised on the last trading day of the first three months of 2015, or March 31, 2015, based upon our closing stock price on that date of $6.67. | ||||||||||||||||||||||||||
Schedule of Restricted Stock | A summary of restricted stock unit activity for the three months ended March 31, 2015, is as follows: | ||||||||||||||||||||||||||
Number | Weighted | ||||||||||||||||||||||||||
of Shares | Average | ||||||||||||||||||||||||||
Grant Date | |||||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||||
Balance, December 31, 2014 | 398,513 | $ | 7.32 | ||||||||||||||||||||||||
Granted | 270,383 | $ | 6.8 | ||||||||||||||||||||||||
Vested | (24,601 | ) | $ | 5.8 | |||||||||||||||||||||||
Forfeited | (3,836 | ) | $ | 6.25 | |||||||||||||||||||||||
Balance, March 31, 2015 | 640,459 | $ | 6.4 | ||||||||||||||||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value and Carrying Amount | |||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||
Financial assets: | |||||||||||||||||
Cash and cash equivalents and restricted cash(1) | $ | 82,198 | $ | 82,198 | $ | 5,351 | $ | 5,351 | |||||||||
Accounts receivable(1) | $ | 7,063 | $ | 7,063 | $ | 6,752 | $ | 6,752 | |||||||||
Notes receivable | $ | 5,203 | $ | 5,203 | $ | 5,284 | $ | 5,284 | |||||||||
Financial liabilities: | |||||||||||||||||
Current liabilities, excluding debt(1) | $ | 20,882 | $ | 20,882 | $ | 18,469 | $ | 18,469 | |||||||||
Total debt | $ | 51,508 | $ | 57,456 | $ | 29,873 | $ | 30,683 | |||||||||
Debentures | $ | 30,825 | $ | 31,759 | $ | 30,825 | $ | 31,639 | |||||||||
__________ | |||||||||||||||||
-1 | Includes the cash, accounts receivable, and current liabilities of discontinued operations held for sale as of December 31, 2014. |
Organization_Details
Organization (Details) | Mar. 31, 2015 |
province | |
state | |
hotel | |
Business Acquisition [Line Items] | |
Number of Total Hotels | 57 |
Number of States Hotels are Located | 12 |
Number of Canadian Provinces Hotels are Located | 1 |
Number of Hotels, Operated | 18 |
Number of Hotels, Majority Owned | 12 |
Number of Hotels, Leased | 5 |
Number of Hotels, Managed | 1 |
Number of Hotels, Franchised | 37 |
Equity Method Investment, Percentage | 19.90% |
Red Lion Hotels Capital Trust | |
Business Acquisition [Line Items] | |
Interest in Variable Interest Entity | 3.00% |
Leo Hotel Collection [Member] | |
Business Acquisition [Line Items] | |
Number of Total Hotels | 2 |
Number of Hotel Rooms | 3,256 |
Meeting Space (in square feet) | 241,000 |
Red Lion Hotels and Red Lion Inns & Suites [Member] | |
Business Acquisition [Line Items] | |
Number of Total Hotels | 55 |
Number of Hotel Rooms | 8,799 |
Meeting Space (in square feet) | 438,322 |
Variable_Interest_Entities_Det
Variable Interest Entities (Details) (USD $) | 3 Months Ended | 1 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Jan. 31, 2015 | Dec. 31, 2014 | |
hotel | ||||
Assets: | ||||
Accounts receivable, net | $7,063,000 | $6,752,000 | ||
Inventories | 820,000 | 1,013,000 | ||
Prepaid expenses and other assets | 3,268,000 | 3,671,000 | ||
Property and equipment, net | 159,468,000 | 160,410,000 | ||
Total assets | 277,600,000 | 223,027,000 | ||
Liabilities: | ||||
Accounts payable | 3,578,000 | 2,952,000 | ||
Accrued payroll and related benefits | 4,032,000 | 4,567,000 | ||
Other accrued expenses | 4,413,000 | 2,547,000 | ||
Long-term debt, due after one year, net of discount | 51,508,000 | 29,873,000 | ||
Total liabilities | 109,057,000 | 82,190,000 | ||
Shareholders' equity | 168,543,000 | 140,837,000 | ||
Total liabilities and stockholders’ equity | 277,600,000 | 223,027,000 | ||
Condensed Statement of Comprehensive Income (Loss) | ||||
Hotel revenue | 23,772,000 | 25,924,000 | ||
Hotel operating expenses | 20,922,000 | 22,814,000 | ||
Depreciation and amortization | 2,976,000 | 3,143,000 | ||
General and administrative expenses | 2,324,000 | 2,113,000 | ||
Other expenses | 8,000 | 114,000 | ||
Operating income (loss) | 12,634,000 | -2,175,000 | ||
Interest expense | 1,502,000 | 1,217,000 | ||
Net income (loss) | 10,133,000 | -3,518,000 | ||
RL Venture LLC | Variable Interest Entity, Primary Beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Ownership by non-controlling interest holders | 45.00% | |||
Number of hotels transfered | 12 | |||
Ownership by parent | 55.00% | |||
Loss on the sale of the equity interests as a reduction to additional paid in capital | 12,300,000 | |||
Cash distributions | 0 | |||
Assets: | ||||
Cash and restricted cash | 1,974,000 | |||
Accounts receivable, net | 1,071,000 | |||
Inventories | 421,000 | |||
Prepaid expenses and other assets | 801,000 | |||
Property and equipment, net | 109,581,000 | |||
Total assets | 113,848,000 | |||
Liabilities: | ||||
Accounts payable | 1,465,000 | |||
Accrued payroll and related benefits | 1,328,000 | |||
Other accrued expenses | 1,578,000 | |||
Long-term debt, due after one year, net of discount | 51,516,000 | |||
Total liabilities | 55,887,000 | |||
Shareholders' equity | 57,961,000 | |||
Total liabilities and stockholders’ equity | 113,848,000 | |||
Condensed Statement of Comprehensive Income (Loss) | ||||
Hotel revenue | 13,552,000 | |||
Hotel operating expenses | 9,832,000 | |||
Depreciation and amortization | 1,666,000 | |||
General and administrative expenses | 1,385,000 | |||
Other expenses | 14,000 | |||
Operating income (loss) | 655,000 | |||
Interest expense | 721,000 | |||
Net income (loss) | ($66,000) |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $221,213 | $221,126 |
Less accumulated depreciation | -120,943 | -117,968 |
Property, plant and equipment, net, excluding land and construction in progress | 100,270 | 103,158 |
Property and equipment, net | 159,468 | 160,410 |
Buildings and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 182,360 | 182,273 |
Landscaping and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 6,943 | 6,943 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 31,910 | 31,910 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 38,891 | 39,087 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $20,307 | $18,165 |
Assets_Held_for_Sale_Details
Assets Held for Sale (Details) (USD $) | 3 Months Ended | 1 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Jan. 31, 2015 | Feb. 28, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||||
Proceeds from disposition of property and equipment | $37,729,000 | $295,000 | |||
Wenatchee and Bellevue [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Assets held for sale, gross | 18,632,000 | ||||
Less accumulated depreciation and amortization | -8,537,000 | ||||
Assets held for sale, net, excluding land and construction in progress | 10,095,000 | ||||
Assets held for sale | 21,173,000 | ||||
Wenatchee and Bellevue [Member] | Buildings and equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Assets held for sale, gross | 16,339,000 | ||||
Wenatchee and Bellevue [Member] | Furniture and fixtures | |||||
Property, Plant and Equipment [Line Items] | |||||
Assets held for sale, gross | 345,000 | ||||
Wenatchee and Bellevue [Member] | Landscaping and land improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Assets held for sale, gross | 1,948,000 | ||||
Wenatchee and Bellevue [Member] | Land | |||||
Property, Plant and Equipment [Line Items] | |||||
Assets held for sale, gross | 11,066,000 | ||||
Wenatchee and Bellevue [Member] | Construction in progress | |||||
Property, Plant and Equipment [Line Items] | |||||
Assets held for sale, gross | 12,000 | ||||
Red Lion Hotel Wenatchee | |||||
Property, Plant and Equipment [Line Items] | |||||
Proceeds from disposition of property and equipment | 4,100,000 | ||||
Gain on sale of property | 200,000 | ||||
Bellevue Property | |||||
Property, Plant and Equipment [Line Items] | |||||
Proceeds from disposition of property and equipment | 35,400,000 | ||||
Gain on sale of property | $16,200,000 |
Discontinued_Operations_Income
Discontinued Operations (Income Statement) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loss from operations of discontinued business units | $0 | ($186) |
Loss on disposal and impairment of the assets of the discontinued business units | 0 | -2 |
Net income (loss) from discontinued operations | 0 | -188 |
Red Lion Hotel Eugene, Oregon | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Revenues | 0 | 133 |
Operating expenses | 0 | -289 |
Hotel facility and land lease | 0 | -30 |
Loss from operations of discontinued business units | 0 | -186 |
Loss on disposal and impairment of the assets of the discontinued business units | 0 | -2 |
Net income (loss) from discontinued operations | $0 | ($188) |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Goodwill and Intangible Assets [Line Items] | ||
Goodwill | $8,512 | $8,512 |
Intangible assets | 7,012 | 7,012 |
Company operated hotels | ||
Schedule of Goodwill and Intangible Assets [Line Items] | ||
Goodwill | 0 | 0 |
Intangible assets | 4,659 | 4,659 |
Franchised hotels | ||
Schedule of Goodwill and Intangible Assets [Line Items] | ||
Goodwill | 5,351 | 5,351 |
Intangible assets | 2,347 | 2,347 |
Entertainment | ||
Schedule of Goodwill and Intangible Assets [Line Items] | ||
Goodwill | 3,161 | 3,161 |
Intangible assets | 6 | 6 |
Brand name | ||
Schedule of Goodwill and Intangible Assets [Line Items] | ||
Intangible assets | 6,878 | 6,878 |
Trademarks | ||
Schedule of Goodwill and Intangible Assets [Line Items] | ||
Intangible assets | $134 | $134 |
LongTerm_Debt_RL_Venture_Detai
Long-Term Debt (RL Venture) (Details) (RL Venture LLC, USD $) | 1 Months Ended | |
Jan. 31, 2015 | Mar. 31, 2015 | |
Debt Instrument [Line Items] | ||
Number of wholly-owned subsidiaries | 12 | |
Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Principal amount of debt | $53,800,000 | |
Additional advance | 26,200,000 | |
Term of loan | 2 years | |
Debt outstanding | 0 | |
Unamortized debt issuance fees | $2,300,000 | |
Extension period | 1 year | |
Notes Payable to Banks | LIBOR | ||
Debt Instrument [Line Items] | ||
Amortization period | 25 years | |
Basis spread on variable rate | 4.75% |
LongTerm_Debt_Wells_Fargo_Deta
Long-Term Debt (Wells Fargo) (Details) (USD $) | 3 Months Ended | 1 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Jan. 31, 2015 | |
Debt Instrument [Line Items] | |||
Loss on early retirement of debt | $1,159,000 | $0 | |
Line of Credit | Wells Fargo Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | 10,000,000 | ||
Notes Payable to Banks | Term Loan | |||
Debt Instrument [Line Items] | |||
Loss on early retirement of debt | $1,200,000 |
LongTerm_Debt_Debentures_of_Re
Long-Term Debt (Debentures of Red Lion Hotels Capital Trust) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Debentures due Red Lion Hotels Capital Trust | $30,825,000 | $30,825,000 |
Trust Preferred Securities Subject to Mandatory Redemption | ||
Debt Instrument [Line Items] | ||
Proceeds from issuance of trust preferred securities | 500,000 | |
Ownership by non-controlling interest holders | 3.00% | |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net | 1,400,000 | |
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Mandatory Redemption Percentage, Upon Occurrence of Triggering Event | 35.00% | |
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Percentage of Issued Value, Upon Occurrence of Triggering Event | 105.00% | |
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Upon Occurrence of Triggering Event | 50,000,000 | |
Payments for Repurchase of Trust Preferred Securities | 16,600,000 | |
Financial Instruments Subject to Mandatory Redemption, Preferred Stock and Common Stock Outstanding, Redemption Percentage | 35.00% | |
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Redemption Price Per Share | $26.25 | |
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Redemption Premium Percentage | 5.00% | |
Red Lion Hotels Capital Trust | Trust Preferred Securities Subject to Mandatory Redemption | Variable Interest Entity, Not Primary Beneficiary | ||
Debt Instrument [Line Items] | ||
Proceeds from issuance of trust preferred securities | 46,000,000 | |
Redeemable preferred stock, cash distributions percentage | 9.50% | |
Payment of financing and stock issuance costs | $2,300,000 | |
Non-Current Liabilities | Trust Preferred Securities Subject to Mandatory Redemption | ||
Debt Instrument [Line Items] | ||
Variable Interest Entity, Reporting Entity Involvement, Debenture Percentage | 9.50% |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Details) (USD $) | 3 Months Ended | 1 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Jan. 31, 2015 | |
Derivative [Line Items] | |||
Loss on early retirement of debt | ($1,159,000) | $0 | |
Interest rate cap | |||
Derivative [Line Items] | |||
Derivative notional amount | 80,000,000 | ||
Fixed interest rate | 5.00% | ||
Interest rate cap | Other accrued expenses | |||
Derivative [Line Items] | |||
Derivative liabilities | 100,000 | ||
Interest rate swap | |||
Derivative [Line Items] | |||
Derivative liabilities | 16,200,000 | ||
Interest rate swap | Early retirement of debt | |||
Derivative [Line Items] | |||
Loss on early retirement of debt | $400,000 |
Business_Segments_Details
Business Segments (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
segment | |||
Segment Reporting Information [Line Items] | |||
Number of operating segments | 3 | ||
Revenue | $29,715 | $32,588 | |
Segment operating expenses | 26,596 | 28,427 | |
Depreciation and amortization | 2,976 | 3,143 | |
Other expenses | -12,491 | 3,193 | |
Operating income (loss) | 12,634 | -2,175 | |
Interest expense | -1,502 | -1,217 | |
Loss on early retirement of debt | -1,159 | 0 | |
Other income, net | 272 | 93 | |
Income tax (expense) benefit | -112 | -31 | |
Net income (loss) from continuing operations | 10,133 | -3,330 | |
Discontinued operations | 0 | -188 | |
Net income (loss) from continuing operations | 10,133 | -3,518 | |
Net (income) loss attributable to noncontrolling interest | 30 | 0 | |
Net income (loss) attributable to Red Lion Hotels Corporation | 10,163 | -3,518 | |
Capital expenditures | 2,234 | 3,102 | |
Identifiable assets | 277,600 | 223,027 | |
Company operated hotels | |||
Segment Reporting Information [Line Items] | |||
Revenue | 23,935 | 25,924 | |
Segment operating expenses | 21,085 | 22,814 | |
Depreciation and amortization | 2,761 | 2,869 | |
Other expenses | -14,889 | 1,079 | |
Operating income (loss) | 14,978 | -838 | |
Interest expense | -721 | 0 | |
Loss on early retirement of debt | 0 | 0 | |
Other income, net | 0 | 0 | |
Income tax (expense) benefit | 0 | 0 | |
Net income (loss) from continuing operations | 14,257 | -838 | |
Discontinued operations | 0 | 0 | |
Net income (loss) from continuing operations | 14,257 | -838 | |
Net (income) loss attributable to noncontrolling interest | 30 | 0 | |
Net income (loss) attributable to Red Lion Hotels Corporation | 14,287 | -838 | |
Capital expenditures | 1,849 | 3,322 | |
Identifiable assets | 249,754 | 190,332 | |
Franchised hotels | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,093 | 1,526 | |
Segment operating expenses | 2,377 | 1,442 | |
Depreciation and amortization | 11 | 12 | |
Other expenses | 0 | ||
Operating income (loss) | -295 | 72 | |
Interest expense | 0 | 0 | |
Loss on early retirement of debt | 0 | 0 | |
Other income, net | 2 | 0 | |
Income tax (expense) benefit | 0 | 0 | |
Net income (loss) from continuing operations | -293 | 72 | |
Discontinued operations | 0 | 0 | |
Net income (loss) from continuing operations | -293 | 72 | |
Net (income) loss attributable to noncontrolling interest | 0 | 0 | |
Net income (loss) attributable to Red Lion Hotels Corporation | -293 | 72 | |
Capital expenditures | 0 | 9 | |
Identifiable assets | 10,306 | 9,807 | |
Entertainment | |||
Segment Reporting Information [Line Items] | |||
Revenue | 3,677 | 5,105 | |
Segment operating expenses | 3,126 | 4,057 | |
Depreciation and amortization | 74 | 84 | |
Other expenses | 0 | ||
Operating income (loss) | 477 | 964 | |
Interest expense | 0 | 0 | |
Loss on early retirement of debt | 0 | 0 | |
Other income, net | 47 | 0 | |
Income tax (expense) benefit | 0 | 0 | |
Net income (loss) from continuing operations | 524 | 964 | |
Discontinued operations | 0 | 0 | |
Net income (loss) from continuing operations | 524 | 964 | |
Net (income) loss attributable to noncontrolling interest | 0 | 0 | |
Net income (loss) attributable to Red Lion Hotels Corporation | 524 | 964 | |
Capital expenditures | 88 | 139 | |
Identifiable assets | 5,592 | 6,161 | |
Other | |||
Segment Reporting Information [Line Items] | |||
Revenue | 10 | 33 | |
Segment operating expenses | 8 | 114 | |
Depreciation and amortization | 130 | 178 | |
Other expenses | 2,398 | 2,114 | |
Operating income (loss) | -2,526 | -2,373 | |
Interest expense | -781 | -1,217 | |
Loss on early retirement of debt | -1,159 | 0 | |
Other income, net | 223 | 93 | |
Income tax (expense) benefit | -112 | -31 | |
Net income (loss) from continuing operations | -4,355 | -3,528 | |
Discontinued operations | 0 | -188 | |
Net income (loss) from continuing operations | -4,355 | -3,716 | |
Net (income) loss attributable to noncontrolling interest | 0 | 0 | |
Net income (loss) attributable to Red Lion Hotels Corporation | -4,355 | -3,716 | |
Capital expenditures | 297 | -368 | |
Identifiable assets | $11,948 | $16,727 |
Earnings_Loss_Per_Share_Schedu
Earnings (Loss) Per Share (Schedule of Earnings Per Share) (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Numerator - basic and diluted: | ||
Net income (loss) from continuing operations | $10,133 | ($3,330) |
Net (income) loss attributable to noncontrolling interest | 30 | 0 |
Income (loss) from continuing operations attributable to Red Lion Hotels Corporation | 10,163 | -3,330 |
Income (loss) from discontinued operations | 0 | -188 |
Net income (loss) attributable to Red Lion Hotels Corporation | $10,163 | ($3,518) |
Denominator: | ||
Weighted average shares - basic (in shares) | 19,895 | 19,716 |
Weighted average shares - diluted (in shares) | 20,067 | 19,716 |
Earnings (loss) per share - basic | ||
Income (loss) from continuing operations attributable to Red Lion Hotels Corporation (in dollars per share) | $0.51 | ($0.17) |
Income (loss) from discontinued operations (in dollars per share) | $0 | ($0.01) |
Net income (loss) attributable to Red Lion Hotels Corporation (in dollars per share) | $0.51 | ($0.18) |
Earnings (loss) per share - diluted | ||
Income (loss) from continuing operations attributable to Red Lion Hotels Corporation (in dollars per share) | $0.51 | ($0.17) |
Income (loss) from discontinued operations (in dollars per share) | $0 | ($0.01) |
Net income (loss) attributable to Red Lion Hotels Corporation (in dollars per share) | $0.51 | ($0.18) |
Earnings_Loss_Per_Share_Detail
Earnings (Loss) Per Share (Details) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Stock Options | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of EPS (in shares) | 75,176 | 118,127 | |
Restricted Stock Units (RSUs) | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of EPS (in shares) | 314,618 | ||
Other than options outstanding (in shares) | 640,459 | 314,618 | 398,513 |
Restricted Stock Units (RSUs) | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of EPS (in shares) | 469,424 | ||
Warrants | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of EPS (in shares) | 442,533 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $112 | $31 |
Stockholders_Equity_Stock_Ince
Stockholders' Equity (Stock Incentive Plans) (Details) (2006 Stock Incentive Plan [Member]) | Mar. 31, 2015 |
2006 Stock Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares approved (in shares) | 2,000,000 |
Number of shares of common stock available for issuance | 456,130 |
Stockholders_Equity_Stock_Opti
Stockholders' Equity (Stock Options) (Details) (Stock Options, USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | $0 | $0 |
Number of Shares (in shares) | ||
Balance, December 31, 2014 | 75,176 | |
Options granted | 0 | |
Options exercised | 0 | |
Options forfeited | 0 | |
Balance, March 31, 2015 | 75,176 | |
Exercisable, March 31, 2015 | 75,176 | |
Weighted Average Exercise Price (in dollars per share) | ||
Balance, December 31, 2014 | $10.27 | |
Options granted | $0 | |
Options exercised | $0 | |
Options forfeited | $0 | |
Balance, March 31, 2015 | $10.27 | |
Exercisable, March 31, 2015 | $10.27 |
Stockholders_Equity_Exercise_P
Stockholders' Equity (Exercise Price Range) (Details) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Closing stock price (in dollars per share) | $6.67 |
Stock Options | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding (in shares) | 75,176 |
Weighted Average Remaining Contractual Life (Years) | 2 years 6 months 4 days |
Number Exercisable (in shares) | 75,176 |
Options outstanding, Weighted average exercise price (in dollars per share) | $10.27 |
Options exercisable, Weighted average exercise price (in dollars per share) | $10.27 |
Aggregate Intrinsic Value | $0 |
$7.46 | Stock Options | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price (in dollars per share) | $7.46 |
Number Outstanding (in shares) | 3,500 |
Weighted Average Remaining Contractual Life (Years) | 7 months 10 days |
Number Exercisable (in shares) | 3,500 |
Options outstanding, Weighted average exercise price (in dollars per share) | $7.46 |
Options exercisable, Weighted average exercise price (in dollars per share) | $7.46 |
Aggregate Intrinsic Value | 0 |
$8.74 | Stock Options | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price (in dollars per share) | $8.74 |
Number Outstanding (in shares) | 40,836 |
Weighted Average Remaining Contractual Life (Years) | 3 years 1 month 21 days |
Number Exercisable (in shares) | 40,836 |
Options outstanding, Weighted average exercise price (in dollars per share) | $8.74 |
Options exercisable, Weighted average exercise price (in dollars per share) | $8.74 |
Aggregate Intrinsic Value | 0 |
$12.21 | Stock Options | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price (in dollars per share) | $12.21 |
Number Outstanding (in shares) | 15,195 |
Weighted Average Remaining Contractual Life (Years) | 1 year 7 months 21 days |
Number Exercisable (in shares) | 15,195 |
Options outstanding, Weighted average exercise price (in dollars per share) | $12.21 |
Options exercisable, Weighted average exercise price (in dollars per share) | $12.21 |
Aggregate Intrinsic Value | 0 |
$13.00 | Stock Options | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price (in dollars per share) | $13 |
Number Outstanding (in shares) | 15,645 |
Weighted Average Remaining Contractual Life (Years) | 2 years 1 month 17 days |
Number Exercisable (in shares) | 15,645 |
Options outstanding, Weighted average exercise price (in dollars per share) | $13 |
Options exercisable, Weighted average exercise price (in dollars per share) | $13 |
Aggregate Intrinsic Value | $0 |
Stockholders_Equity_Restricted
Stockholders' Equity (Restricted Stock Units) (Details) (Restricted Stock Units (RSUs), USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of total units granted that are forfeited | 22.00% | |
Compensation expense | $200,000 | $200,000 |
Additional compensation expense | 2,800,000 | |
Weighted average period | 41 months | |
Additional compensation expense expected remainder of year | $700,000 | |
Number of Shares (in shares) | ||
Balance, December 31, 2014 | 398,513 | |
Granted | 270,383 | |
Vested | -24,601 | |
Forfeited | -3,836 | |
Balance, March 31, 2015 | 640,459 | 314,618 |
Weighted Average Grant Date Fair Value (in dollars per share) | ||
Balance, December 31, 2014 | $7.32 | |
Granted | $6.80 | |
Vested | $5.80 | |
Forfeited | $6.25 | |
Balance, March 31, 2015 | $6.40 |
Stockholders_Equity_Employee_S
Stockholders' Equity (Employee Stock Purchase Plan) (Details) (2008 ESPP, USD $) | 1 Months Ended | 3 Months Ended | |
Jan. 31, 2008 | Mar. 31, 2015 | Mar. 31, 2014 | |
2008 ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock authorized for purchase (in shares) | 300,000 | ||
Maximum amount employees can purchase (in shares) | $25,000 | ||
Maximum number of shares employees can purchase (in shares) | 10,000 | ||
Number of shares issued to participants (in shares) | 10,614 | 7,405 |
Stockholders_Equity_Warrants_D
Stockholders' Equity (Warrants) (Details) (Common stock, USD $) | 1 Months Ended |
Jan. 31, 2015 | |
Common stock | |
Class of Warrant or Right [Line Items] | |
Warrants issued (in shares) | 442,533 |
Warrant term | 5 years |
Warrants issued (in dollars per share) | $6.78 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents and restricted cash | $82,198 | $5,351 |
Accounts receivable | 7,063 | 6,752 |
Notes receivable | 5,203 | 5,284 |
Financial liabilities: | ||
Current liabilities, excluding debt | 20,882 | 18,469 |
Total debt | 51,508 | 29,873 |
Debentures | 30,825 | 30,825 |
Fair Value | ||
Financial assets: | ||
Cash and cash equivalents and restricted cash | 82,198 | 5,351 |
Accounts receivable | 7,063 | 6,752 |
Notes receivable | 5,203 | 5,284 |
Financial liabilities: | ||
Current liabilities, excluding debt | 20,882 | 18,469 |
Total debt | 57,456 | 30,683 |
Debentures | $31,759 | $31,639 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
Equity Method Investment, Percentage | 19.90% |
Guarantor Obligations, Maximum Exposure, Undiscounted | $1.90 |
Guarantor Obligations, Maximum Exposure, Percentage | 19.90% |
Lease Termination Fee | $3 |
RelatedParty_Transactions_Deta
Related-Party Transactions (Details) (RL Venture LLC, USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Shelbourne Falcon | |
Related Party Transaction [Line Items] | |
Monthly investor relations fee, percent of total revenue | 0.50% |
CPA Development, LLC | Construction Management Fee | |
Related Party Transaction [Line Items] | |
Construction management fee due | 200,000 |
Construction management fee paid | 18,200 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 1 Months Ended | |
Apr. 30, 2015 | Mar. 31, 2015 | |
extension | ||
Interest rate cap | ||
Subsequent Event [Line Items] | ||
Derivative notional amount | $80,000,000 | |
Fixed interest rate | 5.00% | |
Subsequent Event | RL Baltimore [Member] | Interest rate cap | ||
Subsequent Event [Line Items] | ||
Derivative notional amount | 13,300,000 | |
Fixed interest rate | 3.00% | |
Subsequent Event | RL Baltimore [Member] | Mortgage | ||
Subsequent Event [Line Items] | ||
Principal amount of debt | 10,100,000 | |
Additional advance | 3,200,000 | |
Term of loan | 3 years | |
Number of extension options | 2 | |
Extension period | 1 year | |
Monthly principal payments | 16,000 | |
Subsequent Event | RL Baltimore [Member] | Mortgage | LIBOR | ||
Subsequent Event [Line Items] | ||
Basis spread on variable rate | 6.25% | |
RLS Balt Venture LLC [Member] | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Ownership by non-controlling interest holders | 21.00% | |
Option to purchase additional interest percent | 24.00% | |
Option to purchase additional interest cost | 2,300,000 | |
Management contract period | 5 years | |
Number of extension terms | 3 | |
Contract extension period | 5 years | |
GuestHouse International and Settle Inn & Suites [Member] | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Purchase of all intellectual property rights and franchise license agreements, number of properties | 73 | |
Purchase of all intellectual property rights and franchise license agreements, cost | 8,500,000 | |
Purchase of all intellectual property rights and franchise license agreements, number of properties, potential additional payment | $1,500,000 |