Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | May 04, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-13957 | |
Entity Registrant Name | RED LION HOTELS CORP | |
Entity Incorporation, State or Country Code | WA | |
Entity Tax Identification Number | 91-1032187 | |
Entity Address, Address Line One | 1550 Market St. #425 | |
Entity Address, City or Town | Denver | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80202 | |
City Area Code | 509 | |
Local Phone Number | 459-6100 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | RLH | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 25,341,649 | |
Entity Central Index Key | 0001052595 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents ($1,914 and $1,819 attributable to VIEs) | $ 37,775 | $ 29,497 |
Restricted cash ($100 and $2,311 attributable to VIEs) | 100 | 2,311 |
Accounts receivable ($718 and $1,033 attributable to VIEs), net of an allowance for doubtful accounts of $8,125 and $4,589, respectively | 10,701 | 15,143 |
Notes receivable, net | 286 | 5,709 |
Other current assets ($144 and $311 attributable to VIEs) | 5,156 | 5,849 |
Total current assets | 54,018 | 58,509 |
Property and equipment, net ($11,520 and $29,848 attributable to VIEs) | 36,071 | 68,668 |
Operating lease right-of-use assets ($— and $10,810 attributable to VIEs) | 5,552 | 48,283 |
Goodwill | 18,595 | 18,595 |
Intangible assets, net | 47,845 | 48,612 |
Other assets, net ($— and $703 attributable to VIEs) | 2,427 | 3,851 |
Total assets | 164,508 | 246,518 |
Current liabilities: | ||
Accounts payable ($543 and $589 attributable to VIEs) | 6,251 | 5,510 |
Accrued payroll and related benefits ($68 and $349 attributable to VIEs) | 1,184 | 2,709 |
Other accrued liabilities ($176 and $455 attributable to VIEs) | 4,915 | 5,469 |
Long-term debt, due within one year ($5,576 and $16,984 attributable to VIEs) | 5,576 | 16,984 |
Operating lease liabilities, due within one year ($— and $966 attributable to VIEs) | 1,519 | 4,809 |
Total current liabilities | 19,445 | 35,481 |
Long-term debt, due after one year, net of debt issuance costs ($— and $5,576 attributable to VIEs) | 0 | 5,576 |
Line of credit, due after one year | 0 | 10,000 |
Operating lease liabilities, due after one year ($— and $11,938 attributable to VIEs) | 5,339 | 46,592 |
Deferred income and other long-term liabilities ($3 and $28 attributable to VIEs) | 941 | 1,105 |
Deferred income taxes | 678 | 743 |
Liabilities, Total | 26,403 | 99,497 |
Total liabilities | ||
RLH 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; 25,208,983 and 25,148,005 shares issued and outstanding | 253 | 251 |
Additional paid-in capital, common stock | 179,568 | 181,608 |
Accumulated deficit | (44,974) | (36,875) |
Total RLH Corporation stockholders' equity | 134,847 | 144,984 |
Noncontrolling interest | 3,258 | 2,037 |
Total stockholders' equity | 138,105 | 147,021 |
Total liabilities and stockholders’ equity | $ 164,508 | $ 246,518 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Cash and cash equivalents | $ 37,775 | $ 29,497 |
Restricted cash | 100 | 2,311 |
Accounts receivable | 10,701 | 15,143 |
Prepaid expenses and other | 5,156 | 5,849 |
Property and equipment, net | 36,071 | 68,668 |
Operating lease right-of-use assets | 5,552 | 48,283 |
Other assets, net | 2,427 | 3,851 |
Accounts payable | 6,251 | 5,510 |
Accrued payroll and related benefits | 1,184 | 2,709 |
Other accrued liabilities | 4,915 | 5,469 |
Long-term debt, due within one year | 5,576 | 16,984 |
Operating lease liabilities, due within one year | 1,519 | 4,809 |
Long-term debt, due after one year, debt issuance costs | 0 | 5,576 |
Operating lease liabilities, due after one year | 5,339 | 46,592 |
Deferred income and other long-term liabilities | $ 941 | $ 1,105 |
RLH Corporation stockholders' equity: | ||
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued (in shares) | 25,208,983 | 25,208,983 |
Common stock, shares outstanding (in shares) | 25,148,005 | 25,148,005 |
Variable Interest Entity, Primary Beneficiary | ||
Cash and cash equivalents | $ 1,914 | $ 1,819 |
Restricted cash | 100 | 2,311 |
Accounts receivable | 718 | 1,033 |
Allowance for doubtful accounts | 8,125 | 4,589 |
Prepaid expenses and other | 144 | 311 |
Property and equipment, net | 11,520 | 29,848 |
Operating lease right-of-use assets | 0 | 10,810 |
Other assets, net | 0 | 703 |
Accounts payable | 543 | 589 |
Accrued payroll and related benefits | 68 | 349 |
Other accrued liabilities | 176 | 455 |
Long-term debt, due within one year | 5,576 | 16,984 |
Operating lease liabilities, due within one year | 0 | 966 |
Long-term debt, due after one year, debt issuance costs | 0 | 5,576 |
Operating lease liabilities, due after one year | 0 | 11,938 |
Deferred income and other long-term liabilities | $ 3 | $ 28 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue | $ 17,265 | $ 25,984 |
Operating expenses: | ||
Selling, general, administrative and other expenses | 16,265 | 7,391 |
Depreciation and amortization | 2,537 | 3,447 |
Asset impairment | 1,760 | 0 |
Loss (gain) on asset dispositions, net | (7,892) | 6 |
Transaction and integration costs | 398 | 62 |
Total operating expenses | 25,504 | 29,612 |
Operating income (loss) | (8,239) | (3,628) |
Other income (expense): | ||
Interest expense | (506) | (882) |
Loss on early retirement of debt | (1,309) | 0 |
Other income (loss), net | 48 | 33 |
Total other income (expense) | (1,767) | (849) |
Income (loss) before taxes | (10,006) | (4,477) |
Income tax expense (benefit) | (752) | 82 |
Net income (loss) | (9,254) | (4,559) |
Net (income) loss attributable to noncontrolling interest | 1,155 | 286 |
Net income (loss) and comprehensive income (loss) attributable to RLH Corporation | $ (8,099) | $ (4,273) |
Earnings Per Share, Basic and Diluted | ||
Earnings (loss) per share - basic (in dollars per share) | $ (0.32) | $ (0.17) |
Earnings (loss) per share - diluted (in dollars per share) | $ (0.32) | $ (0.17) |
Weighted Average Number of Shares Outstanding, Basic and Diluted | ||
Weighted average shares - basic (in shares) | 25,199 | 24,603 |
Weighted average shares - diluted (in shares) | 25,199 | 24,603 |
Royalty | ||
Revenue | $ 4,357 | $ 5,740 |
Marketing, reservations and reimbursables | ||
Revenue | 5,805 | 6,729 |
Operating expenses: | ||
Cost of goods and services sold | 5,758 | 7,161 |
Other franchise | ||
Revenue | 774 | 542 |
Company operated hotels | ||
Revenue | 6,329 | 12,970 |
Operating expenses: | ||
Cost of goods and services sold | 6,678 | 11,545 |
Other | ||
Revenue | $ 0 | $ 3 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | RLH Corporation Total Equity | Equity Attributable to Non-controlling Interest |
Beginning balance (in shares) at Dec. 31, 2018 | 24,570,158 | |||||
Beginning balance at Dec. 31, 2018 | $ 185,582 | $ 246 | $ 182,018 | $ (17,846) | $ 164,418 | $ 21,164 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (4,559) | (4,273) | (4,273) | (286) | ||
Shared based payment activity (in shares) | 56,301 | |||||
Shared based payment activity | 686 | $ 1 | 685 | 686 | ||
Distributions to noncontrolling interests | (7,431) | (7,431) | ||||
Ending balance (in shares) at Mar. 31, 2019 | 24,626,459 | |||||
Ending balance at Mar. 31, 2019 | 174,278 | $ 247 | 182,703 | (22,119) | 160,831 | 13,447 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (3,771) | (2,997) | (2,997) | (774) | ||
Shared based payment activity (in shares) | 449,453 | |||||
Shared based payment activity | (1,030) | $ 4 | (1,034) | (1,030) | ||
Ending balance (in shares) at Jun. 30, 2019 | 25,075,912 | |||||
Ending balance at Jun. 30, 2019 | 169,477 | $ 251 | 181,669 | (25,116) | 156,804 | 12,673 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (6,652) | (3,672) | (3,672) | (2,980) | ||
Shared based payment activity (in shares) | 42,600 | |||||
Shared based payment activity | 1,055 | $ 1 | 1,054 | 1,055 | ||
Ending balance (in shares) at Sep. 30, 2019 | 25,118,512 | |||||
Ending balance at Sep. 30, 2019 | 163,880 | $ 252 | 182,723 | (28,788) | 154,187 | 9,693 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (5,991) | (8,087) | (8,087) | 2,096 | ||
Shared based payment activity (in shares) | 29,493 | |||||
Shared based payment activity | (740) | $ (1) | (739) | (740) | ||
Distributions to noncontrolling interests | (10,128) | (10,128) | ||||
Reclassification of noncontrolling interest | 0 | (376) | (376) | 376 | ||
Ending balance (in shares) at Dec. 31, 2019 | 25,148,005 | |||||
Ending balance at Dec. 31, 2019 | 147,021 | $ 251 | 181,608 | (36,875) | 144,984 | 2,037 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (9,254) | (8,099) | (8,099) | (1,155) | ||
Shared based payment activity (in shares) | 60,978 | |||||
Shared based payment activity | 338 | $ 2 | 336 | 338 | ||
Reclassification of noncontrolling interest | 0 | (2,376) | (2,376) | 2,376 | ||
Ending balance (in shares) at Mar. 31, 2020 | 25,208,983 | |||||
Ending balance at Mar. 31, 2020 | $ 138,105 | $ 253 | $ 179,568 | $ (44,974) | $ 134,847 | $ 3,258 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | |
Operating activities: | ||||
Net income (loss) | $ (9,254) | $ (5,991) | $ (3,771) | $ (4,559) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 2,537 | 3,447 | ||
Noncash PIK interest and amortization of debt issuance costs | 182 | 47 | ||
Amortization of key money and contract costs | 264 | 206 | ||
Amortization of contract liabilities | (165) | (197) | ||
Loss (gain) on asset dispositions, net | (7,892) | 6 | ||
Noncash loss on early retirement of debt | 750 | 0 | ||
Asset impairment | 1,760 | 0 | ||
Deferred income taxes | (65) | 52 | ||
Stock-based compensation expense | 373 | 916 | ||
Provision for doubtful accounts | 9,739 | 245 | ||
Change in operating assets and liabilities: | ||||
Accounts receivable | 501 | (1,009) | ||
Key money disbursements | (129) | (236) | ||
Other current assets | 504 | (616) | ||
Accounts payable | 459 | 1,383 | ||
Other accrued liabilities | (1,858) | (1,717) | ||
Net cash provided by (used in) operating activities | (2,294) | (2,032) | ||
Investing activities: | ||||
Capital expenditures | (782) | (1,500) | ||
Net proceeds from disposition of property and equipment | 36,896 | 0 | ||
Collection of notes receivable | 0 | 21 | ||
Advances on notes receivable | 0 | (90) | ||
Net cash provided by (used in) investing activities | 36,114 | (1,569) | ||
Financing activities: | ||||
Borrowings on long-term debt, net of discounts | 0 | 16,513 | ||
Repayment of long-term debt and finance leases | (17,717) | (170) | ||
Repayment of line of credit borrowing | (10,000) | 0 | ||
Distributions to noncontrolling interest | 0 | (7,431) | ||
Stock-based compensation awards canceled to settle employee tax withholding | (81) | (342) | ||
Stock option and stock purchase plan issuances, net and other | 45 | 112 | ||
Net cash provided by (used in) financing activities | (27,753) | 8,682 | ||
Change in cash, cash equivalents and restricted cash: | ||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 6,067 | 5,081 | ||
Cash, cash equivalents and restricted cash at beginning of period | 31,808 | $ 24,870 | 19,789 | |
Cash, cash equivalents and restricted cash at end of period | $ 37,875 | $ 31,808 | $ 24,870 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | OrganizationRed Lion Hotels Corporation ("RLH Corporation," "RLHC," "we," "our," "us," or "our company") is a NYSE-listed hospitality and leisure company (ticker symbol: RLH) doing business as RLH Corporation and primarily engaged in the franchising and ownership of hotels under the following proprietary brands: Hotel RL, Red Lion Hotels, Red Lion Inn & Suites, GuestHouse, Settle Inn, Americas Best Value Inn, Canadas Best Value Inn, Signature and Signature Inn, Knights Inn, and Country Hearth Inns & Suites. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The unaudited condensed consolidated financial statements included herein were 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 annual financial statements prepared in accordance with GAAP have been condensed or omitted as permitted by such rules and regulations. The Consolidated Balance Sheet as of December 31, 2019 was derived 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, 2019, filed with the SEC in our annual report on Form 10-K on February 27, 2020. In the opinion of management, these unaudited condensed consolidated financial statements contain all of the adjustments of a normal and recurring nature necessary to present fairly our Condensed Consolidated Balance Sheets, the Condensed Consolidated Statements of Comprehensive Income (Loss), the Condensed Consolidated Statements of Stockholders' Equity, and the Condensed Consolidated Statements of Cash Flows. The results of operations for the periods presented may not be indicative of that which may be expected for a full year or for any other fiscal period. New Accounting Pronouncements Not Yet Adopted In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments , as amended by multiple subsequent ASUs, which will change how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The ASU will replace the current "incurred loss" approach with an "expected loss" model for instruments measured at amortized cost. For trade and other receivables, held to maturity debt securities, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model that generally will result in the earlier recognition of allowances for losses. In October 2019, an update was issued to the standard that deferred the effective date of the guidance to the first quarter of 2023 for smaller reporting companies such as us. We are currently evaluating the effects of this ASU on our financial statements, and such effects have not yet been determined. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes , which amends the existing guidance related to the accounting for income taxes. The ASU eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries. The guidance also simplifies aspects of accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The ASU is effective the first quarter of 2021, with early adoption permitted. We are currently evaluating the effects of this ASU on our financial statements, and such effects have not yet been determined. We have assessed the potential impact of other recently issued, but not yet effective, accounting standards and determined that the provisions are either not applicable to us or are not anticipated to have a material impact on our consolidated financial statements. |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments We have two operating segments: franchised hotels and company operated hotels. The "other" segment consists of miscellaneous revenues and expenses, cash and cash equivalents, certain receivables, certain property and equipment and general and administrative expenses, which are not specifically associated with an operating segment. Management reviews and evaluates the operating segments exclusive of interest expense, income taxes and certain corporate expenses; therefore, they have not been allocated to the operating segments. We allocate selling, general, administrative and other expenses to our operating 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, 2020 Franchised Hotels Company Operated Hotels Other Total Revenue $ 10,936 $ 6,329 $ — $ 17,265 Operating expenses: Segment and other operating expenses 17,540 7,030 4,131 28,701 Depreciation and amortization 882 866 789 2,537 Asset impairment — 1,760 — 1,760 Transaction and integration costs — 32 366 398 Loss (gain) on asset dispositions, net — (7,892) — (7,892) Operating income (loss) $ (7,486) $ 4,533 $ (5,286) $ (8,239) Identifiable assets as of March 31, 2020 $ 82,199 $ 65,523 $ 16,786 $ 164,508 Three Months Ended March 31, 2019 Franchised Hotels Company Operated Hotels Other Total Revenue $ 13,011 $ 12,970 $ 3 $ 25,984 Operating expenses: Segment and other operating expenses 9,622 12,461 4,014 26,097 Depreciation and amortization 914 1,956 577 3,447 Transaction and integration costs 62 — — 62 Loss (gain) on asset dispositions, net — 6 — 6 Operating income (loss) $ 2,413 $ (1,453) $ (4,588) $ (3,628) Identifiable assets as of December 31, 2019 $ 91,832 $ 138,477 $ 16,209 $ 246,518 |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2020 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable Interest Entities Our joint venture entities have been determined to be variable interest entities ("VIEs") because our voting rights are not proportional to our financial interest and substantially all of each joint venture's activities involve and are conducted on our behalf. We have determined that we are the primary beneficiary as (a) we exert power over two of the entity's key activities (hotel operations and property renovations) and share power over the remaining key activities with our joint venture partners, which do not have the unilateral ability to exercise kick-out rights, and (b) we have the obligation to absorb losses and right to receive benefits that could be significant to the entity through our equity interest and management fees. As a result, we consolidate the assets, liabilities, and results of operations of (1) RL Venture LLC ("RL Venture"), (2) RLS Atla Venture LLC ("RLS Atla Venture"), and (3) RLS DC Venture LLC ("RLS DC Venture"). The equity interests owned by our joint venture partners are reflected as a noncontrolling interest in the condensed consolidated financial statements. In November 2019, RLH Atlanta LLC, which is wholly owned by RLS Atla Venture, sold the Red Lion Hotel Atlanta International Airport Hotel. Upon completion of the sale, no remaining distributions to our joint venture partner, Shelbourne Falcon Big Peach Investors, LLC, were required and the remaining noncontrolling interest for the entity was reclassified to Additional paid-in capital on the Condensed Consolidated Balance Sheets. There were no cash contributions or distributions by partners to any of the joint venture entities during the three months ended March 31, 2020 or 2019 except as otherwise described below. RL Venture For all periods presented, RLH Corporation owns 55% of RL Venture and our JV Partner owns 45%. In March 2019, secured loans with an aggregate principal of $16.6 million were entered into for two RL Venture properties, Hotel RL Salt Lake City and Hotel RL Olympia. Shortly thereafter the net loan proceeds were distributed to us and our joint venture partner in accordance with our respective ownership percentages. In December 2019, the Hotel RL Salt Lake City sold for $33.0 million. Proceeds from the sale were used to repay in full the secured loan entered into in 2019 for the Hotel RL Salt Lake City property. As of March 31, 2020, RL Venture has one remaining property, the Hotel RL Olympia. Cash distributions may also be made periodically based on calculated distributable income. There were no distributions made during the three months ended March 31, 2020. During the three months ended March 31, 2019, cash distributions totaled $16.5 million, of which RLH Corporation received $9.1 million. RLS DC Venture As of December 31, 2019, RLH Corporation owned 55% of RLS DC Venture and our Joint Venture Partner owned 45%. In May 2019, a secured loan with principal and accrued exit fee of $17.4 million was executed by RLS DC Venture. The net loan proceeds were used to pay off the previous debt with a principal balance of approximately $15.9 million. There were no cash distributions resulting from the refinancing. In February 2020, the Hotel RL in Washington DC, which was wholly-owned by RLS DC Venture, was sold for $16.4 million. Using proceeds from the sale, together with the release of $2.3 million in restricted cash held by CP Business Finance I, LP, RLS DC Venture repaid the remaining outstanding principal balance and accrued exit fee under the secured loan agreement. The $2.4 million balance remaining in non-controlling interest for the entity was reclassified to Additional paid-in capital on the Condensed Consolidated Balance Sheets as no remaining distributions to the joint venture partner are required. |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment is summarized as follows (in thousands): March 31, December 31, Buildings and equipment $ 47,186 $ 101,619 Furniture and fixtures 6,718 12,407 Landscaping and land improvements 493 2,038 54,397 116,064 Less accumulated depreciation (29,099) (57,491) 25,298 58,573 Land 6,871 6,871 Construction in progress 3,902 3,224 Property and equipment, net $ 36,071 $ 68,668 A novel strain of coronavirus (COVID-19) was first identified in Wuhan, China in December 2019, and subsequently declared a pandemic by the World Health Organization on March 11, 2020. To date, COVID-19 has surfaced in nearly all regions around the world and resulted in travel restrictions and business slowdowns or shutdowns in affected areas. The economic impact of the pandemic thus far has been extremely punitive to travel related businesses across the nation, significantly affecting the operating results of companies within the hospitality industry. We considered the actual and anticipated economic impacts of the COVID-19 pandemic on our financial results to be an indicator that the carrying value of our long-lived assets might not be recoverable. Accordingly, we performed a test for recoverability using probability-weighted undiscounted cash flows on our long-lived assets as of March 31, 2020. Only the Red Lion Hotel Seattle Airport, one of our company operated hotel properties under a lease through February 2024, did not recover the carrying value of the long-lived asset group in the test for recoverability, due to the short useful life and lack of terminal value. After calculating the fair value of the Red Lion Hotel Seattle Airport property long-lived asset group, we recognized an impairment loss of $1.8 million. The fair value was determined based on a discounted cash flow analysis, which is a Level 3 fair value measurement. The impairment loss was allocated to the assets within the long-lived asset group on a pro rata basis, with $1.5 million applied against the hotel building leasehold interest, included within Property and equipment, net and $0.3 million applied against the Operating lease right-of-use asset on the Condensed Consolidated Balance Sheets. There were no other impairments of our long-lived assets. During the three months ended March 31, 2020, we sold the Hotel RL Washington DC joint venture hotel property, and our leasehold interest in the Red Lion Anaheim for a combined net gain of $7.9 million. There were no properties sold during the three months ended March 31, 2019. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Interim Impairment Assessment We considered the actual and anticipated economic impacts of the COVID-19 pandemic on our financial results to be an indicator that the fair value of our goodwill and indefinite-lived intangible assets might be less than their carrying amounts. Accordingly, we performed quantitative assessments to measure the fair values of these assets as of March 31, 2020. No impairments were identified based on the quantitative impairment calculations of our goodwill and other indefinite-lived intangible assets. The following table summarizes the balances of goodwill and other intangible assets (in thousands): March 31, December 31, Goodwill $ 18,595 $ 18,595 Intangible assets Brand name - indefinite lived $ 32,532 $ 32,532 Trademarks - indefinite lived 128 128 Brand name - finite lived, net 3,376 3,554 Customer contracts - finite lived, net 11,809 12,398 Total intangible assets, net $ 47,845 $ 48,612 The following table summarizes the balances of amortized customer contracts and finite-lived brand names (in thousands): March 31, December 31, Customer contracts $ 20,773 $ 20,773 Brand name - finite lived 5,395 5,395 Accumulated amortization (10,983) (10,216) Net carrying amount $ 15,185 $ 15,952 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Inner Circle In July 2019, the parent entities for eight Inner Circle franchisees and the operating entities for two other Inner Circle franchisees all filed for voluntary bankruptcy protection under Chapter 11 of the United Stated Bankruptcy Code. As of March 31, 2020 there was approximately $7.1 million in accounts receivable and notes receivable balances related to these franchisees, including unamortized key money converted to notes receivable upon termination of contracts, of which $0.8 million had been previously allowed for. The remaining balances were supported through a security interest in property improvements and an equity interest in one of the leaseholds, as well as a personal guarantee of the owner. However, during the first quarter of 2020, the first lienholder for the collateral property indicated its desire to exercise its right to foreclose on the leasehold interest and liquidate the property. Due to the timing of this action in conjunction with the decline in fair value of the collateral property due to the economic impacts of the COVID-19 pandemic, we have concluded the fair value of the collateral no longer supports any of the remaining balances and as such we have recognized bad debt expense of $6.3 million on the previously unreserved balances. We recognized $0.1 million and $0.3 million of royalty income from these franchisees during the three months ended March 31, 2020 and 2019, respectively. Other Allowances As of March 31, 2020, we evaluated the economic impacts of the COVID-19 pandemic and historical collection information on the collectibility of our accounts receivable and notes receivable balances. We determined it was appropriate to recognize additional bad debt expense of $3.4 million, primarily related to large balances under legal dispute, aged balances from terminated agreements, or aged balances placed with third party collections. The following table provides information about receivables, contract assets and contract liabilities from contracts with customers (in thousands): Financial Statement Line Item(s) March 31, December 31, Accounts receivable Accounts receivable, net $ 10,701 $ 15,143 Key money disbursed Other current assets and Other assets, net 1,875 2,228 Capitalized contract costs Other current assets and Other assets, net 833 941 Contract liabilities Other accrued liabilities and Deferred income and other long-term liabilities 1,397 1,448 Significant changes in the key money disbursements, capitalized contract costs, and contract liabilities balances during the period are as follows (in thousands): Key Money Disbursed Capitalized Contract Costs Contract Liabilities Balance as of January 1, 2020 $ 2,228 $ 941 $ 1,448 Key money disbursed 129 — — Key money converted from accounts receivable 247 — — Key money converted to notes receivable (639) — — Costs incurred to acquire contracts — 66 — Cash received in advance — — 114 Revenue or expense recognized that was included in the January 1, 2020 balance (83) (172) (162) Revenue or expense recognized in the period for the period (7) (2) (3) Balance as of March 31, 2020 $ 1,875 $ 833 $ 1,397 Estimated revenues and expenses expected to be recognized related to performance obligations that were unsatisfied as of March 31, 2020, including revenues related to application, initiation and other fees were as follows (in thousands): Year Ending December 31, Contra Revenue Expense Revenue 2020 (remainder) $ 254 $ 263 $ 413 2021 267 183 361 2022 235 154 269 2023 197 113 170 2024 161 67 99 Thereafter 761 53 85 Total $ 1,875 $ 833 $ 1,397 We did not estimate revenues expected to be recognized related to our unsatisfied performance obligations for our: (i) royalty fees, as they are considered sales-based royalty fees recognized as hotel room sales occur in exchange for licenses of our brand names over the terms of the franchise contracts; and (ii) hotel management fees, since they are allocated entirely to the wholly unsatisfied promise to transfer management services, which form part of a single performance obligation in a series, over the term of the management contract. Therefore, there are no amounts included in the table above related to these revenues. |
Debt and Line of Credit
Debt and Line of Credit | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt and Line of Credit | Debt and Line of Credit The current and noncurrent portions of our debt as of March 31, 2020 and December 31, 2019 are as follows (in thousands): March 31, 2020 December 31, 2019 Current Noncurrent Current Noncurrent Line of Credit $ — $ — $ — $ 10,000 RL Venture - Olympia 5,600 — — 5,600 RLH DC Venture — — 17,648 — Total debt 5,600 — 17,648 15,600 Unamortized debt issuance costs (24) — (664) (24) Debt net of debt issuance costs $ 5,576 $ — $ 16,984 $ 15,576 Each of our debt agreements contain customary reporting, financial and operating covenants. We were in compliance with all the financial covenants of our debt agreements at March 31, 2020. RL Venture - Olympia In March 2019, RL Olympia, LLC, a subsidiary of RL Venture, executed a secured debt agreement with Umpqua Bank for a term loan with a principal balance of $5.6 million. We incurred approximately $33,000 of debt discounts and debt issuance costs in connection with the issuance of the loan. The loan is fully secured by the Hotel RL Olympia property. The loan has a maturity date of March 18, 2021 and a variable interest rate of LIBOR plus 2.25%, payable monthly. The borrower has the option to exercise two six-month extensions upon maturity of the loan. There are no principal repayment requirements prior to the maturity date and the loan includes a financial covenant to be calculated semi-annually in which the property must maintain a minimum debt service coverage ratio of not less than 1.6 to 1.0. Due to the impact of the COVID-19 pandemic, we have determined the property is unlikely to meet the required minimum financial covenants as of the next required semi-annual calculation of June 30, 2020. As a violation of the financial covenant would result in an acceleration of the maturity date of the loan, we have classified this debt as current in our Condensed Consolidated Balance Sheets as of March 31, 2020, despite the previously discussed extensions available to us under the loan agreement. We are engaged in ongoing discussions with our lenders regarding potential remedies for the anticipated covenant violation. Line of Credit In August 2018, we drew the full $10.0 million available to us on the Line of Credit under a credit agreement with Deutsche Bank AG New York Branch (DB), Capital One, National Association and Raymond James Bank, N.A., as lenders and DB as the administrative agent. In the first quarter of 2020, we sold our leasehold interest in the Red Lion Anaheim for $21.5 million. Using proceeds from the sale, we repaid the outstanding Line of Credit balance of $10.0 million. This debt is no longer outstanding as of March 31, 2020 and as the credit agreement has been terminated we no longer have access to this Line of Credit. Due to the early extinguishment of this debt, we recognized a Loss on early retirement of debt of $0.2 million. RLH DC Venture In the first quarter of 2020, we sold the Hotel RL Washington DC for $16.4 million. Using proceeds from the sale, together with the release of $2.3 million in restricted cash held by CP Business Finance I, LP, RLH DC Venture repaid the remaining outstanding principal balance and accrued exit fee under the RLH DC Venture loan agreement of $17.7 million. This debt is no longer outstanding as of March 31, 2020. Due to the early extinguishment of this debt, we recognized a Loss on early retirement of debt of $1.1 million, including a prepayment penalty of $0.6 million. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases We lease equipment and land and/or property at certain company operated hotel properties as well as office space for our headquarters through operating leases. We have elected the practical expedient so that leases with an initial term of 12 months or less are not recorded on the balance sheet. We are obligated under finance leases for certain hotel equipment at our company operated hotel locations. The finance leases typically have a five During the first quarter of 2020, we sold the Hotel RL Washington DC joint venture property, which had a ground lease with a term through 2080. As of December 31, 2019, we had recorded an Operating lease right-of use asset of $10.8 million, and total operating lease liabilities of $12.9 million for this ground lease. The ground lease was transferred with the sale of the property, resulting in the removal of these balances from the Condensed Consolidated Balance Sheets. Also in the first quarter of 2020, we sold our leasehold interest in the Red Lion Anaheim, which had a ground lease with a term through 2021 with renewal options through 2106 that were reasonably assured to be exercised. As of December 31, 2019, we had recorded an Operating lease right-of use asset of $31.4 million, with corresponding operating lease liabilities of $31.4 million for this ground lease. The ground lease was transferred with the sale of the property, resulting in the removal of these balances from the Condensed Consolidated Balance Sheets. Balance sheet information related to our leases is included in the following table (in thousands): Operating Leases March 31, 2020 December 31, 2019 Operating lease right-of-use assets $ 5,552 $ 48,283 Operating lease liabilities, due within one year $ 1,519 $ 4,809 Operating lease liabilities, due after one year 5,339 46,592 Total operating lease liabilities $ 6,858 $ 51,401 Finance Leases March 31, 2020 December 31, 2019 Property and equipment $ 135 $ 298 Less accumulated depreciation (106) (168) Property and equipment, net $ 29 $ 130 Other accrued liabilities $ 27 $ 74 Deferred income and other long-term liabilities 6 76 Total finance lease liabilities $ 33 $ 150 The components of lease expense during the three months ended March 31, 2020 and 2019 are included in the following table (in thousands): Financial Statement Line Item(s) Three Months Ended March 31, 2020 Three months ended March 31, 2019 Operating lease expense Selling, general, administrative and other expenses, and Company operated hotels $ 816 $ 1,133 Short-term lease expense Selling, general, administrative and other expenses, and Company operated hotels 98 247 Sublease income Selling, general, administrative and other expenses (18) — Finance lease expense Amortization of finance right-of-use assets Depreciation and amortization 8 35 Interest on lease liabilities Interest expense 3 8 Total finance lease expense 11 43 Total lease expense $ 907 $ 1,423 Supplemental cash flow information for our leases is included in the following table (in thousands): Cash paid for amounts included in the measurement of lease liabilities: Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Cash used in operating activities for operating leases $ 848 $ 1,169 Cash used in operating activities for finance leases 3 8 Cash used in financing activities for finance leases 13 34 There were no new finance lease assets or associated liabilities during the three months ended March 31, 2020 and 2019. Information related to the weighted average remaining lease terms and discount rates for our leases as of March 31, 2020 and December 31, 2019 is included in the following table: March 31, 2020 December 31, 2019 Weighted average remaining lease term (in years) Operating leases 6 69 Finance leases 1 3 Weighted average discount rate Operating leases 5.8 % 7.2 % Finance leases 5.7 % 11.9 % The future maturities of lease liabilities at March 31, 2020, are as indicated below (in thousands): Years Ending December 31, Operating Leases Finance Leases 2020 (remainder) $ 1,141 $ 20 2021 1,522 14 2022 1,486 — 2023 1,449 — 2024 595 — Thereafter 1,984 — Total lease payments 8,177 34 Less: imputed interest 1,319 1 $ 6,858 $ 33 The future maturities of lease liabilities in the table above do not differ materially from future minimum rental payments under the previous leasing standard. |
Leases | Leases We lease equipment and land and/or property at certain company operated hotel properties as well as office space for our headquarters through operating leases. We have elected the practical expedient so that leases with an initial term of 12 months or less are not recorded on the balance sheet. We are obligated under finance leases for certain hotel equipment at our company operated hotel locations. The finance leases typically have a five During the first quarter of 2020, we sold the Hotel RL Washington DC joint venture property, which had a ground lease with a term through 2080. As of December 31, 2019, we had recorded an Operating lease right-of use asset of $10.8 million, and total operating lease liabilities of $12.9 million for this ground lease. The ground lease was transferred with the sale of the property, resulting in the removal of these balances from the Condensed Consolidated Balance Sheets. Also in the first quarter of 2020, we sold our leasehold interest in the Red Lion Anaheim, which had a ground lease with a term through 2021 with renewal options through 2106 that were reasonably assured to be exercised. As of December 31, 2019, we had recorded an Operating lease right-of use asset of $31.4 million, with corresponding operating lease liabilities of $31.4 million for this ground lease. The ground lease was transferred with the sale of the property, resulting in the removal of these balances from the Condensed Consolidated Balance Sheets. Balance sheet information related to our leases is included in the following table (in thousands): Operating Leases March 31, 2020 December 31, 2019 Operating lease right-of-use assets $ 5,552 $ 48,283 Operating lease liabilities, due within one year $ 1,519 $ 4,809 Operating lease liabilities, due after one year 5,339 46,592 Total operating lease liabilities $ 6,858 $ 51,401 Finance Leases March 31, 2020 December 31, 2019 Property and equipment $ 135 $ 298 Less accumulated depreciation (106) (168) Property and equipment, net $ 29 $ 130 Other accrued liabilities $ 27 $ 74 Deferred income and other long-term liabilities 6 76 Total finance lease liabilities $ 33 $ 150 The components of lease expense during the three months ended March 31, 2020 and 2019 are included in the following table (in thousands): Financial Statement Line Item(s) Three Months Ended March 31, 2020 Three months ended March 31, 2019 Operating lease expense Selling, general, administrative and other expenses, and Company operated hotels $ 816 $ 1,133 Short-term lease expense Selling, general, administrative and other expenses, and Company operated hotels 98 247 Sublease income Selling, general, administrative and other expenses (18) — Finance lease expense Amortization of finance right-of-use assets Depreciation and amortization 8 35 Interest on lease liabilities Interest expense 3 8 Total finance lease expense 11 43 Total lease expense $ 907 $ 1,423 Supplemental cash flow information for our leases is included in the following table (in thousands): Cash paid for amounts included in the measurement of lease liabilities: Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Cash used in operating activities for operating leases $ 848 $ 1,169 Cash used in operating activities for finance leases 3 8 Cash used in financing activities for finance leases 13 34 There were no new finance lease assets or associated liabilities during the three months ended March 31, 2020 and 2019. Information related to the weighted average remaining lease terms and discount rates for our leases as of March 31, 2020 and December 31, 2019 is included in the following table: March 31, 2020 December 31, 2019 Weighted average remaining lease term (in years) Operating leases 6 69 Finance leases 1 3 Weighted average discount rate Operating leases 5.8 % 7.2 % Finance leases 5.7 % 11.9 % The future maturities of lease liabilities at March 31, 2020, are as indicated below (in thousands): Years Ending December 31, Operating Leases Finance Leases 2020 (remainder) $ 1,141 $ 20 2021 1,522 14 2022 1,486 — 2023 1,449 — 2024 595 — Thereafter 1,984 — Total lease payments 8,177 34 Less: imputed interest 1,319 1 $ 6,858 $ 33 The future maturities of lease liabilities in the table above do not differ materially from future minimum rental payments under the previous leasing standard. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
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. During the second quarter of 2019, we accrued approximately $952,000 for a settlement over a wage dispute with former hotel employees related to the calculation of pay for certain rest, break, meal, and other periods that are required under California law. Based on information currently available, we do not expect that any other sums we may receive or have to pay in connection with any legal proceeding would have a material effect on our consolidated financial position or net cash flow. See Item 1. Legal Proceedings within Part 2. Other Information for additional detail. |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock Based Compensation | Stock Based Compensation Stock Incentive Plans The 2015 Stock Incentive Plan, as amended, ("2015 Plan") authorizes the grant or issuance of various stock-based awards, including stock options, restricted stock units, and other stock-based compensation. The 2015 Plan was approved by our shareholders in 2015, and amended in 2017, and as amended provides for awards of 2.9 million shares, subject to adjustments for stock splits, stock dividends and similar events. As of March 31, 2020, there were 1.2 million shares of common stock available for issuance pursuant to future awards under the 2015 Plan, as amended. Stock based compensation expense reflects the fair value of stock-based awards measured at grant date, including an estimated forfeiture rate, and is recognized over the relevant service period. For the three months ended March 31, 2020 and 2019 stock-based compensation expense is as follows (in thousands): Three Months Ended March 31, 2020 2019 Restricted stock units $ 238 $ 612 Unrestricted stock awards 112 129 Performance stock units 15 147 Stock options — 22 Employee stock purchase plan 8 6 Total stock-based compensation $ 373 $ 916 Restricted Stock Units Restricted stock units (RSUs") granted to executive officers and other key employees typically vest 25% each year for four years on each anniversary of the grant date. Under the terms of the 2015 Plan, upon issuance, we deliver a net settlement of distributable shares to employees after consideration of individual employees' tax withholding obligations, at the election of each employee. The fair value of restricted stock that vested during the three months ended March 31, 2020 and 2019 was approximately $0.2 million and $1.2 million, respectively. For RSUs outstanding as of March 31, 2020, there was $1.8 million in compensation expense remaining to be recognized over the remaining weighted average vesting periods of 23 months. However, in connection with a reduction in force in April 2020, 73,613 outstanding RSUs were forfeited, leaving $1.4 million in remaining compensation expense to be recognized over the remaining weighted average vesting periods of 24 months as of April 30, 2020. A summary of restricted stock unit activity for the three months ended March 31, 2020, is as follows: Number Weighted January 1, 2020 459,070 $ 9.03 Vested (120,017) $ 8.51 Forfeited (51,393) $ 8.45 March 31, 2020 287,660 $ 9.36 Performance Stock Units, Shares Issued as Compensation Performance stock units ("PSUs") are granted to certain of our executives under the 2015 Plan. These PSUs include both performance and service vesting conditions. Each performance condition has a minimum, a target and a maximum share amount based on the level of attainment of the performance condition. Compensation expense, net of estimated forfeitures, is calculated based on the estimated attainment of the performance conditions during the performance period and recognized on a straight-line basis over the performance and service periods. No PSUs were granted during the three months ended March 31, 2020. During the three months ended March 31, 2020, 25,796 PSUs vested at a weighted average grant date fair value of $6.45. The fair value of PSUs that vested during the three months ended March 31, 2020 was approximately $38,000. No PSUs vested during the three months ended March 31, 2019. There are no PSUs outstanding and no remaining compensation expense to be recognized related to PSUs as of March 31, 2020. Unrestricted Stock Awards Unrestricted stock awards are granted to members of our Board of Directors as part of their compensation. Awards are fully vested, and expense is recognized when granted. The fair value of unrestricted stock awards is the market close price of our common stock on the date of the grant. The following table summarizes unrestricted stock award activity for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, 2020 2019 Shares of unrestricted stock granted 30,883 15,355 Weighted average grant date fair value per share $ 3.63 $ 8.44 |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 and 2019 (in thousands, except per share data): Three Months Ended March 31, 2020 2019 Numerator - basic and diluted: Net income (loss) $ (9,254) $ (4,559) Net (income) loss attributable to noncontrolling interest 1,155 286 Net income (loss) attributable to RLH Corporation $ (8,099) $ (4,273) Denominator: Weighted average shares - basic 25,199 24,603 Weighted average shares - diluted 25,199 24,603 Earnings (loss) per share - basic $ (0.32) $ (0.17) Earnings (loss) per share - diluted $ (0.32) $ (0.17) The following table presents options to purchase common shares, restricted stock units outstanding, performance stock units outstanding, and warrants to purchase common shares included in the earnings per share calculation, as well as the amount excluded from the dilutive earnings per share calculation if they were considered antidilutive, for the three months ended March 31, 2020 and 2019. Three Months Ended March 31, 2020 2019 Stock Options (1) Dilutive awards outstanding — — Antidilutive awards outstanding — 81,130 Total awards outstanding — 81,130 Restricted Stock Units (2) Dilutive awards outstanding — — Antidilutive awards outstanding 287,660 1,395,881 Total awards outstanding 287,660 1,395,881 Performance Stock Units (3) Dilutive awards outstanding — — Antidilutive awards outstanding — 427,638 Total awards outstanding — 427,638 Warrants (4) Dilutive awards outstanding — — Antidilutive awards outstanding — 442,533 Total awards outstanding — 442,533 (1) All stock options for the three months ended March 31, 2020 and 2019 were anti-dilutive as a result of the net loss attributable to RLH Corporation for these periods, and as a result of the RLH Corporation weighted average share price during the reporting period. (2) Restricted stock units were anti-dilutive for the three months ended March 31, 2020 and 2019 due to our net loss in the reporting periods. If we had reported net income for the three months ended March 31, 2020 and 2019, then 7,733 and 697,494 weighted average restricted stock units would have been dilutive, respectively. (3) Performance stock units were anti-dilutive for the three months ended March 31, 2020 and 2019 due to the net loss attributable to RLH Corporation in the reporting period. If we had reported net income for the three months ended March 31, 2020 and 2019, then 10,180 and 97,406 weighted average performance stock units would have been dilutive, respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On March 27, 2020, President Trump signed into law the “Coronavirus Aid, Relief and Economic security Act” (CARES Act) which generally allows for unlimited use of NOLS generated in 2019 and 2020 as well as a five year carryback provision and shortening the recovery period for qualified improvement property. We recognized an income tax (benefit) expense of $(752,000) and $82,000 for the three months ended March 31, 2020 and 2019, respectively. The income tax benefit recognized for the three months ended March 31, 2020 is principally related to the provisions of the CARES Act. The income tax expense recognized for the three months ended March 31, 2019 varies from the statutory rate primarily due to a partial valuation allowance against our deferred tax assets, as well as deferred tax expense associated with our acquired indefinite-lived intangible assets, which are amortized for tax purposes but not for GAAP purposes. We have state operating loss carryforwards, which expire beginning in 2020, and both federal and state tax credit carryforwards, which begin to expire in 2024. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value 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 Level 1, Level 2 and Level 3 of the fair value hierarchy. Cash, Restricted cash and Accounts receivable carrying values approximate fair value due to the short-term nature of these items. We estimate the fair value of our Notes receivable using expected future payments discounted at risk-adjusted rates, both of which are Level 3 inputs. We estimate the fair value of our long-term debt and capital lease obligations using expected future payments discounted at risk-adjusted rates, both of which are Level 3 inputs. 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. Estimated fair values of financial instruments are shown in the table below (in thousands). March 31, 2020 December 31, 2019 Carrying Fair Carrying Fair Financial assets: Notes receivable $ 286 $ 286 $ 5,709 $ 5,709 Financial liabilities: Debt $ 5,600 $ 5,535 $ 33,248 $ 32,737 Total finance lease obligations 33 33 150 150 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions During the fourth quarter of 2018, we transitioned management of our company operated Hotel RL Baltimore Inner Harbor and Hotel RL Washington DC from RL Management, Inc., to HEI Hotels and Resorts, of which one of the members of our Board of Directors, Ted Darnall, is currently the Chief Executive Officer. Additionally, during the first quarter of 2019, management of our company operated hotel Red Lion Hotel Seattle Airport was also transitioned from RL Management, Inc. to HEI Hotels and Resorts. During the three months ended March 31, 2020, and 2019 we paid $197,000 and $228,000, respectively, in management fees to HEI Hotels and Resorts for management of these properties. On May 31, 2019 we executed a mortgage loan with a principal and accrued exit fee of $17.4 million with CP Business Finance I, LP, an affiliate of Columbia Pacific Opportunity Fund, LP, who currently holds 500,000 shares of RLHC common stock. Additionally, Alexander B. Washburn, who served as a member of our Board of Directors from May 2015 to April 2019, is one of the managing members of Columbia Pacific Advisor, LLC, which serves as the investment manager of Columbia Pacific Opportunity Fund, LP. This debt is no longer outstanding as of March 31, 2020. |
Dispositions
Dispositions | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Dispositions | Dispositions In the first quarter of 2020, we continued the execution of a hotel asset sales initiative consistent with our previously stated business strategy to focus on moving towards operations as primarily a franchise company, and disposed of two hotels from our company operated hotels segment. These dispositions resulted in a combined net gain of $7.9 million The following summarizes the result of operations for the two properties sold during the first quarter of 2020 (in thousands): Three Months Ended March 31, 2020 2019 Pre-tax income (loss) $ 6,088 $ (121) Net (income) loss attributable to noncontrolling interest 1,134 240 Net income (loss) attributable to RLHC $ 7,222 $ 119 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events As a result of the COVID-19 pandemic, economic uncertainties have arisen which RLHC expects to negatively impact our business, operations and financial results. The impact has continued to evolve subsequent to the quarter ended March 31, 2020 and as of the date of these unaudited consolidated financial statements. The duration of the pandemic and the resulting economic uncertainties, and the impacts on RLHC’s financial condition, results of operations and cash flows, will depend on numerous evolving factors that cannot be accurately predicted at this time. Given the dynamic nature of this situation, the Company cannot reasonably estimate the impacts of COVID-19 on its financial condition, results of operations or cash flows for the foreseeable future. However, it is expected to have a material, adverse impact on future revenue growth as well as overall profitability. On April 2, 2020, RLHC announced a significant reduction in force in response to the anticipated impact of the COVID-19 pandemic, reducing our corporate workforce by approximately 40%. Total severance expense of approximately $0.6 million will be recognized in conjunction with the severance, with $0.2 million recognized during the first quarter of 2020 and $0.4 million recognized during the second quarter of 2020. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The unaudited condensed consolidated financial statements included herein were 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 annual financial statements prepared in accordance with GAAP have been condensed or omitted as permitted by such rules and regulations. The Consolidated Balance Sheet as of December 31, 2019 was derived 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, 2019, filed with the SEC in our annual report on Form 10-K on February 27, 2020. In the opinion of management, these unaudited condensed consolidated financial statements contain all of the adjustments of a normal and recurring nature necessary to present fairly our Condensed Consolidated Balance Sheets, the Condensed Consolidated Statements of Comprehensive Income (Loss), the Condensed Consolidated Statements of Stockholders' Equity, and the Condensed Consolidated Statements of Cash Flows. The results of operations for the periods presented may not be indicative of that which may be expected for a full year or for any other fiscal period. |
New Accounting Pronouncements Not Yet Adopted and Adopted | New Accounting Pronouncements Not Yet Adopted In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments , as amended by multiple subsequent ASUs, which will change how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The ASU will replace the current "incurred loss" approach with an "expected loss" model for instruments measured at amortized cost. For trade and other receivables, held to maturity debt securities, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model that generally will result in the earlier recognition of allowances for losses. In October 2019, an update was issued to the standard that deferred the effective date of the guidance to the first quarter of 2023 for smaller reporting companies such as us. We are currently evaluating the effects of this ASU on our financial statements, and such effects have not yet been determined. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes , which amends the existing guidance related to the accounting for income taxes. The ASU eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries. The guidance also simplifies aspects of accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The ASU is effective the first quarter of 2021, with early adoption permitted. We are currently evaluating the effects of this ASU on our financial statements, and such effects have not yet been determined. We have assessed the potential impact of other recently issued, but not yet effective, accounting standards and determined that the provisions are either not applicable to us or are not anticipated to have a material impact on our consolidated financial statements. |
Fair Value | 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 Level 1, Level 2 and Level 3 of the fair value hierarchy. Cash, Restricted cash and Accounts receivable carrying values approximate fair value due to the short-term nature of these items. We estimate the fair value of our Notes receivable using expected future payments discounted at risk-adjusted rates, both of which are Level 3 inputs. We estimate the fair value of our long-term debt |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Selected financial information is provided below (in thousands): Three Months Ended March 31, 2020 Franchised Hotels Company Operated Hotels Other Total Revenue $ 10,936 $ 6,329 $ — $ 17,265 Operating expenses: Segment and other operating expenses 17,540 7,030 4,131 28,701 Depreciation and amortization 882 866 789 2,537 Asset impairment — 1,760 — 1,760 Transaction and integration costs — 32 366 398 Loss (gain) on asset dispositions, net — (7,892) — (7,892) Operating income (loss) $ (7,486) $ 4,533 $ (5,286) $ (8,239) Identifiable assets as of March 31, 2020 $ 82,199 $ 65,523 $ 16,786 $ 164,508 Three Months Ended March 31, 2019 Franchised Hotels Company Operated Hotels Other Total Revenue $ 13,011 $ 12,970 $ 3 $ 25,984 Operating expenses: Segment and other operating expenses 9,622 12,461 4,014 26,097 Depreciation and amortization 914 1,956 577 3,447 Transaction and integration costs 62 — — 62 Loss (gain) on asset dispositions, net — 6 — 6 Operating income (loss) $ 2,413 $ (1,453) $ (4,588) $ (3,628) Identifiable assets as of December 31, 2019 $ 91,832 $ 138,477 $ 16,209 $ 246,518 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property and equipment is summarized as follows (in thousands): March 31, December 31, Buildings and equipment $ 47,186 $ 101,619 Furniture and fixtures 6,718 12,407 Landscaping and land improvements 493 2,038 54,397 116,064 Less accumulated depreciation (29,099) (57,491) 25,298 58,573 Land 6,871 6,871 Construction in progress 3,902 3,224 Property and equipment, net $ 36,071 $ 68,668 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, December 31, Goodwill $ 18,595 $ 18,595 Intangible assets Brand name - indefinite lived $ 32,532 $ 32,532 Trademarks - indefinite lived 128 128 Brand name - finite lived, net 3,376 3,554 Customer contracts - finite lived, net 11,809 12,398 Total intangible assets, net $ 47,845 $ 48,612 |
Schedule of Intangible Assets | The following table summarizes the balances of amortized customer contracts and finite-lived brand names (in thousands): March 31, December 31, Customer contracts $ 20,773 $ 20,773 Brand name - finite lived 5,395 5,395 Accumulated amortization (10,983) (10,216) Net carrying amount $ 15,185 $ 15,952 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Contract with Customer Assets and Liabilities | The following table provides information about receivables, contract assets and contract liabilities from contracts with customers (in thousands): Financial Statement Line Item(s) March 31, December 31, Accounts receivable Accounts receivable, net $ 10,701 $ 15,143 Key money disbursed Other current assets and Other assets, net 1,875 2,228 Capitalized contract costs Other current assets and Other assets, net 833 941 Contract liabilities Other accrued liabilities and Deferred income and other long-term liabilities 1,397 1,448 Significant changes in the key money disbursements, capitalized contract costs, and contract liabilities balances during the period are as follows (in thousands): Key Money Disbursed Capitalized Contract Costs Contract Liabilities Balance as of January 1, 2020 $ 2,228 $ 941 $ 1,448 Key money disbursed 129 — — Key money converted from accounts receivable 247 — — Key money converted to notes receivable (639) — — Costs incurred to acquire contracts — 66 — Cash received in advance — — 114 Revenue or expense recognized that was included in the January 1, 2020 balance (83) (172) (162) Revenue or expense recognized in the period for the period (7) (2) (3) Balance as of March 31, 2020 $ 1,875 $ 833 $ 1,397 |
Summary of Estimated Performance Obligations | Estimated revenues and expenses expected to be recognized related to performance obligations that were unsatisfied as of March 31, 2020, including revenues related to application, initiation and other fees were as follows (in thousands): Year Ending December 31, Contra Revenue Expense Revenue 2020 (remainder) $ 254 $ 263 $ 413 2021 267 183 361 2022 235 154 269 2023 197 113 170 2024 161 67 99 Thereafter 761 53 85 Total $ 1,875 $ 833 $ 1,397 |
Debt and Line of Credit (Tables
Debt and Line of Credit (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Current and Non-Current Portions of Long-Term Debt | The current and noncurrent portions of our debt as of March 31, 2020 and December 31, 2019 are as follows (in thousands): March 31, 2020 December 31, 2019 Current Noncurrent Current Noncurrent Line of Credit $ — $ — $ — $ 10,000 RL Venture - Olympia 5,600 — — 5,600 RLH DC Venture — — 17,648 — Total debt 5,600 — 17,648 15,600 Unamortized debt issuance costs (24) — (664) (24) Debt net of debt issuance costs $ 5,576 $ — $ 16,984 $ 15,576 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Schedule of Balance Sheet Information | Balance sheet information related to our leases is included in the following table (in thousands): Operating Leases March 31, 2020 December 31, 2019 Operating lease right-of-use assets $ 5,552 $ 48,283 Operating lease liabilities, due within one year $ 1,519 $ 4,809 Operating lease liabilities, due after one year 5,339 46,592 Total operating lease liabilities $ 6,858 $ 51,401 Finance Leases March 31, 2020 December 31, 2019 Property and equipment $ 135 $ 298 Less accumulated depreciation (106) (168) Property and equipment, net $ 29 $ 130 Other accrued liabilities $ 27 $ 74 Deferred income and other long-term liabilities 6 76 Total finance lease liabilities $ 33 $ 150 |
Schedule of Components of Lease Expense and Supplemental Cash Flow Information | The components of lease expense during the three months ended March 31, 2020 and 2019 are included in the following table (in thousands): Financial Statement Line Item(s) Three Months Ended March 31, 2020 Three months ended March 31, 2019 Operating lease expense Selling, general, administrative and other expenses, and Company operated hotels $ 816 $ 1,133 Short-term lease expense Selling, general, administrative and other expenses, and Company operated hotels 98 247 Sublease income Selling, general, administrative and other expenses (18) — Finance lease expense Amortization of finance right-of-use assets Depreciation and amortization 8 35 Interest on lease liabilities Interest expense 3 8 Total finance lease expense 11 43 Total lease expense $ 907 $ 1,423 Supplemental cash flow information for our leases is included in the following table (in thousands): Cash paid for amounts included in the measurement of lease liabilities: Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Cash used in operating activities for operating leases $ 848 $ 1,169 Cash used in operating activities for finance leases 3 8 Cash used in financing activities for finance leases 13 34 Information related to the weighted average remaining lease terms and discount rates for our leases as of March 31, 2020 and December 31, 2019 is included in the following table: March 31, 2020 December 31, 2019 Weighted average remaining lease term (in years) Operating leases 6 69 Finance leases 1 3 Weighted average discount rate Operating leases 5.8 % 7.2 % Finance leases 5.7 % 11.9 % |
Schedule of Future Maturities of Lease Liabilities | The future maturities of lease liabilities at March 31, 2020, are as indicated below (in thousands): Years Ending December 31, Operating Leases Finance Leases 2020 (remainder) $ 1,141 $ 20 2021 1,522 14 2022 1,486 — 2023 1,449 — 2024 595 — Thereafter 1,984 — Total lease payments 8,177 34 Less: imputed interest 1,319 1 $ 6,858 $ 33 |
Schedule of Future Maturities of Lease Liabilities | The future maturities of lease liabilities at March 31, 2020, are as indicated below (in thousands): Years Ending December 31, Operating Leases Finance Leases 2020 (remainder) $ 1,141 $ 20 2021 1,522 14 2022 1,486 — 2023 1,449 — 2024 595 — Thereafter 1,984 — Total lease payments 8,177 34 Less: imputed interest 1,319 1 $ 6,858 $ 33 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Compensation Cost | For the three months ended March 31, 2020 and 2019 stock-based compensation expense is as follows (in thousands): Three Months Ended March 31, 2020 2019 Restricted stock units $ 238 $ 612 Unrestricted stock awards 112 129 Performance stock units 15 147 Stock options — 22 Employee stock purchase plan 8 6 Total stock-based compensation $ 373 $ 916 |
Schedule of Restricted Stock | A summary of restricted stock unit activity for the three months ended March 31, 2020, is as follows: Number Weighted January 1, 2020 459,070 $ 9.03 Vested (120,017) $ 8.51 Forfeited (51,393) $ 8.45 March 31, 2020 287,660 $ 9.36 |
Schedule of Unrestricted Stock Awards | The following table summarizes unrestricted stock award activity for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, 2020 2019 Shares of unrestricted stock granted 30,883 15,355 Weighted average grant date fair value per share $ 3.63 $ 8.44 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 and 2019 (in thousands, except per share data): Three Months Ended March 31, 2020 2019 Numerator - basic and diluted: Net income (loss) $ (9,254) $ (4,559) Net (income) loss attributable to noncontrolling interest 1,155 286 Net income (loss) attributable to RLH Corporation $ (8,099) $ (4,273) Denominator: Weighted average shares - basic 25,199 24,603 Weighted average shares - diluted 25,199 24,603 Earnings (loss) per share - basic $ (0.32) $ (0.17) Earnings (loss) per share - diluted $ (0.32) $ (0.17) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table presents options to purchase common shares, restricted stock units outstanding, performance stock units outstanding, and warrants to purchase common shares included in the earnings per share calculation, as well as the amount excluded from the dilutive earnings per share calculation if they were considered antidilutive, for the three months ended March 31, 2020 and 2019. Three Months Ended March 31, 2020 2019 Stock Options (1) Dilutive awards outstanding — — Antidilutive awards outstanding — 81,130 Total awards outstanding — 81,130 Restricted Stock Units (2) Dilutive awards outstanding — — Antidilutive awards outstanding 287,660 1,395,881 Total awards outstanding 287,660 1,395,881 Performance Stock Units (3) Dilutive awards outstanding — — Antidilutive awards outstanding — 427,638 Total awards outstanding — 427,638 Warrants (4) Dilutive awards outstanding — — Antidilutive awards outstanding — 442,533 Total awards outstanding — 442,533 (1) All stock options for the three months ended March 31, 2020 and 2019 were anti-dilutive as a result of the net loss attributable to RLH Corporation for these periods, and as a result of the RLH Corporation weighted average share price during the reporting period. (2) Restricted stock units were anti-dilutive for the three months ended March 31, 2020 and 2019 due to our net loss in the reporting periods. If we had reported net income for the three months ended March 31, 2020 and 2019, then 7,733 and 697,494 weighted average restricted stock units would have been dilutive, respectively. (3) Performance stock units were anti-dilutive for the three months ended March 31, 2020 and 2019 due to the net loss attributable to RLH Corporation in the reporting period. If we had reported net income for the three months ended March 31, 2020 and 2019, then 10,180 and 97,406 weighted average performance stock units would have been dilutive, respectively. |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value and Carrying Amount of Financial Assets and Financial Liabilities | Estimated fair values of financial instruments are shown in the table below (in thousands). March 31, 2020 December 31, 2019 Carrying Fair Carrying Fair Financial assets: Notes receivable $ 286 $ 286 $ 5,709 $ 5,709 Financial liabilities: Debt $ 5,600 $ 5,535 $ 33,248 $ 32,737 Total finance lease obligations 33 33 150 150 |
Dispositions (Tables)
Dispositions (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Summary of Operations for Properties | The following summarizes the result of operations for the two properties sold during the first quarter of 2020 (in thousands): Three Months Ended March 31, 2020 2019 Pre-tax income (loss) $ 6,088 $ (121) Net (income) loss attributable to noncontrolling interest 1,134 240 Net income (loss) attributable to RLHC $ 7,222 $ 119 |
Business Segments (Details)
Business Segments (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020USD ($)segment | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting [Abstract] | |||
Number of operating segments | segment | 2 | ||
Segment Reporting Information [Line Items] | |||
Revenue | $ 17,265 | $ 25,984 | |
Operating expenses: | |||
Segment and other operating expenses | 28,701 | 26,097 | |
Depreciation and amortization | 2,537 | 3,447 | |
Asset impairment | 1,760 | 0 | |
Transaction and integration costs | 398 | 62 | |
Loss (gain) on asset dispositions, net | (7,892) | 6 | |
Operating income (loss) | (8,239) | (3,628) | |
Identifiable assets | 164,508 | $ 246,518 | |
Operating segments | Franchised hotels | |||
Segment Reporting Information [Line Items] | |||
Revenue | 10,936 | 13,011 | |
Operating expenses: | |||
Segment and other operating expenses | 17,540 | 9,622 | |
Depreciation and amortization | 882 | 914 | |
Asset impairment | 0 | ||
Transaction and integration costs | 0 | 62 | |
Loss (gain) on asset dispositions, net | 0 | 0 | |
Operating income (loss) | (7,486) | 2,413 | |
Identifiable assets | 82,199 | 91,832 | |
Operating segments | Company operated hotels | |||
Segment Reporting Information [Line Items] | |||
Revenue | 6,329 | 12,970 | |
Operating expenses: | |||
Segment and other operating expenses | 7,030 | 12,461 | |
Depreciation and amortization | 866 | 1,956 | |
Asset impairment | 1,760 | ||
Transaction and integration costs | 32 | 0 | |
Loss (gain) on asset dispositions, net | (7,892) | 6 | |
Operating income (loss) | 4,533 | (1,453) | |
Identifiable assets | 65,523 | 138,477 | |
Other | |||
Segment Reporting Information [Line Items] | |||
Revenue | 0 | 3 | |
Operating expenses: | |||
Segment and other operating expenses | 4,131 | 4,014 | |
Depreciation and amortization | 789 | 577 | |
Asset impairment | 0 | ||
Transaction and integration costs | 366 | 0 | |
Loss (gain) on asset dispositions, net | 0 | 0 | |
Operating income (loss) | (5,286) | $ (4,588) | |
Identifiable assets | $ 16,786 | $ 16,209 |
Variable Interest Entities (Det
Variable Interest Entities (Details) | Feb. 07, 2020USD ($) | May 31, 2019USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2020USD ($)hotel | Dec. 31, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) |
Variable Interest Entity [Line Items] | |||||||
Reclassification of noncontrolling interest | $ 0 | $ 0 | |||||
Additional Paid-In Capital | |||||||
Variable Interest Entity [Line Items] | |||||||
Reclassification of noncontrolling interest | $ 2,376,000 | 376,000 | |||||
RL Venture LLC | Variable Interest Entity, Primary Beneficiary | |||||||
Variable Interest Entity [Line Items] | |||||||
Cash distributions | $ 16,500,000 | ||||||
Shelbourne Capital | Shelbourne Falcon | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership by non-controlling interest holders | 45.00% | ||||||
Hotel RL Baltimore Inner Harbor | Variable Interest Entity, Primary Beneficiary | |||||||
Variable Interest Entity [Line Items] | |||||||
Cash distributions | $ 0 | 0 | |||||
RL Venture LLC | Variable Interest Entity, Primary Beneficiary | |||||||
Variable Interest Entity [Line Items] | |||||||
Cash distributions | $ 9,100,000 | ||||||
Ownership percentage | 55.00% | ||||||
Number of hotels listed for sale | hotel | 1 | ||||||
Funding provided | $ 16,600,000 | ||||||
RL Venture LLC | Disposal Group, Disposed of by Sale, Not Discontinued Operations | RL Venture Salt Lake City Debt | Variable Interest Entity, Primary Beneficiary | |||||||
Variable Interest Entity [Line Items] | |||||||
Amount hotels sold for | $ 33,000,000 | $ 33,000,000 | |||||
RLH DC Venture | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage | 45.00% | ||||||
RLH DC Venture | Variable Interest Entity, Primary Beneficiary | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage | 55.00% | ||||||
RLH DC Venture | RLH DC Venture | Variable Interest Entity, Primary Beneficiary | |||||||
Variable Interest Entity [Line Items] | |||||||
Funding provided | $ 17,400,000 | ||||||
Net loan proceeds used for debt refinancing | $ 15,900,000 | ||||||
RLH DC Venture | RLH DC Venture (PWB) | |||||||
Variable Interest Entity [Line Items] | |||||||
Proceeds from sale | $ 16,400,000 | ||||||
RLH DC Venture | RLH DC Venture (PWB) | Long-term Debt | |||||||
Variable Interest Entity [Line Items] | |||||||
Release of restricted cash | $ 2,300,000 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 54,397 | $ 116,064 |
Less accumulated depreciation | (29,099) | (57,491) |
Property, plant and equipment, net, excluding land and construction in progress | 25,298 | 58,573 |
Property and equipment, net | 36,071 | 68,668 |
Buildings and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 47,186 | 101,619 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 6,718 | 12,407 |
Landscaping and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 493 | 2,038 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 6,871 | 6,871 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 3,902 | $ 3,224 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Asset impairment | $ 1,760 | $ 0 |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||
Property, Plant and Equipment [Line Items] | ||
Gain (loss) on disposal | $ 0 | |
RLH Seattle Airport | RLH Seattle Airport | ||
Property, Plant and Equipment [Line Items] | ||
Asset impairment | 1,800 | |
Impairment loss applied against hotel building | 1,500 | |
Impairment loss applied against right-of-use assets | 300 | |
RLH DC Venture | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||
Property, Plant and Equipment [Line Items] | ||
Gain (loss) on disposal | $ 7,900 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Summary of Balances of Goodwill and Other Intangibles (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule of Goodwill and Intangible Assets [Line Items] | ||
Goodwill | $ 18,595 | $ 18,595 |
Finite-lived Intangible assets | 15,185 | 15,952 |
Total intangible assets | 47,845 | 48,612 |
Brand names | ||
Schedule of Goodwill and Intangible Assets [Line Items] | ||
Finite-lived Intangible assets | 3,376 | 3,554 |
Customer contracts | ||
Schedule of Goodwill and Intangible Assets [Line Items] | ||
Finite-lived Intangible assets | 11,809 | 12,398 |
Brand names | ||
Schedule of Goodwill and Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 32,532 | 32,532 |
Trademarks | ||
Schedule of Goodwill and Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | $ 128 | $ 128 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization | $ (10,983) | $ (10,216) |
Net carrying amount | 15,185 | 15,952 |
Customer contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangibles | 20,773 | 20,773 |
Net carrying amount | 11,809 | 12,398 |
Brand names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangibles | 5,395 | 5,395 |
Net carrying amount | $ 3,376 | $ 3,554 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Related Party Transaction [Line Items] | ||
Key money converted to notes receivable | $ 639 | |
Additional bad debt expense | 3,400 | |
Inner Circle franchises | ||
Related Party Transaction [Line Items] | ||
Trade receivables | 7,100 | |
Key money converted to notes receivable | 800 | |
Bad debt expense on previously unreserved balances | 6,300 | |
Royalty income from franchises | $ 100 | $ 300 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Receivables, Contract Assets, and Contract Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable | $ 10,701 | $ 15,143 |
Key money disbursed | 1,875 | 2,228 |
Capitalized contract costs | 833 | 941 |
Contract liabilities | $ 1,397 | $ 1,448 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Changes in Contract Assets and Liabilities (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Key Money Disbursed | |
Beginning balance | $ 2,228 |
Key money disbursed | 129 |
Key money converted from accounts receivable | (247) |
Key money converted to notes receivable | (639) |
Revenue or expense recognized that was included in the January 1, 2020 balance | (83) |
Revenue or expense recognized in the period for the period | (7) |
Ending balance | 1,875 |
Capitalized Contract Costs | |
Beginning balance | 941 |
Costs incurred to acquire contracts | 66 |
Revenue or expense recognized that was included in the January 1, 2020 balance | (172) |
Revenue or expense recognized in the period for the period | (2) |
Ending balance | 833 |
Contract Liabilities | |
Beginning balance | 1,448 |
Cash received in advance | 114 |
Revenue or expense recognized that was included in the January 1, 2020 balance | (162) |
Revenue or expense recognized in the period for the period | (3) |
Ending balance | $ 1,397 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Performance Obligations (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Contra Revenue | |
2020 (remainder) | $ 254 |
2021 | 267 |
2022 | 235 |
2023 | 197 |
2024 | 161 |
Thereafter | 761 |
Total | 1,875 |
Expense | |
2020 (remainder) | 263 |
2021 | 183 |
2022 | 154 |
2023 | 113 |
2024 | 67 |
Thereafter | 53 |
Total | 833 |
Revenue, remaining performance obligation | 1,397 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | |
Expense | |
Revenue, remaining performance obligation | $ 413 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Expense | |
Revenue, remaining performance obligation | $ 361 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Expense | |
Revenue, remaining performance obligation | $ 269 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Expense | |
Revenue, remaining performance obligation | $ 170 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Expense | |
Revenue, remaining performance obligation | $ 99 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Expense | |
Revenue, remaining performance obligation | $ 85 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction |
Debt and Line of Credit - Sched
Debt and Line of Credit - Schedule of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Line of credit, current | $ 0 | $ 0 |
Line of credit, noncurrent | 0 | 10,000 |
Long-term debt, gross, current | 5,600 | 17,648 |
Long-term debt, gross, noncurrent | 0 | 15,600 |
Unamortized debt issuance costs, current | (24) | (664) |
Unamortized debt issuance costs, noncurrent | 0 | (24) |
Long-term debt net of debt issuance costs, current | 5,576 | 16,984 |
Long-term debt net of debt issuance costs, noncurrent | 0 | 15,576 |
Long-term Debt | RL Venture - Olympia | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross, current | 5,600 | 0 |
Long-term debt, gross, noncurrent | 0 | 5,600 |
Long-term Debt | RLH DC Venture (CPBF) | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross, current | 0 | 17,648 |
Long-term debt, gross, noncurrent | $ 0 | $ 0 |
Debt and Line of Credit - Addit
Debt and Line of Credit - Additional Information (Details) $ in Thousands | Feb. 07, 2020USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2020USD ($)extension | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Aug. 31, 2018USD ($) |
Debt Instrument [Line Items] | ||||||
Line of credit, due after one year | $ 0 | $ 10,000 | ||||
Loss on early retirement of debt | 1,309 | $ 0 | ||||
Long-term debt, gross, noncurrent | 0 | 15,600 | ||||
RL Venture LLC | Variable Interest Entity, Primary Beneficiary | ||||||
Debt Instrument [Line Items] | ||||||
Funding provided | $ 16,600 | |||||
RLH Anaheim | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from sale of leasehold interest | 21,500 | |||||
RLH DC Venture | RLH DC Venture (PWB) | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from sale | $ 16,400 | |||||
Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit, due after one year | $ 10,000 | |||||
Loss on early retirement of debt | $ 200 | |||||
Long-term Debt | RLH DC Venture | RLH DC Venture (PWB) | ||||||
Debt Instrument [Line Items] | ||||||
Release of restricted cash | 2,300 | |||||
RL Venture - Olympia | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Number of extension options | extension | 2 | |||||
Debt service coverage ratio | 1.6 | |||||
Debt discounts and issuance costs | $ 33 | |||||
RL Venture - Olympia | Secured Debt | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.25% | |||||
RL Venture - Olympia | Secured Debt | RL Venture LLC | Variable Interest Entity, Primary Beneficiary | ||||||
Debt Instrument [Line Items] | ||||||
Funding provided | $ 5,600 | |||||
RL Venture - Olympia | Long-term Debt | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross, noncurrent | 0 | $ 5,600 | ||||
Pacific Western Bank | Long-term Debt | RLH DC Venture (PWB) | ||||||
Debt Instrument [Line Items] | ||||||
Loss on early retirement of debt | 600 | $ 1,100 | ||||
Long-term debt, gross, noncurrent | $ 17,700 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020USD ($) | Mar. 31, 2019 | Dec. 31, 2019USD ($) | |
Operating Leased Assets [Line Items] | |||
Term of contract | 5 years | ||
Operating lease right-of-use assets | $ 5,552 | $ 48,283 | |
Operating lease liabilities | $ 6,858 | 51,401 | |
Number of finance leases | 0 | 0 | |
RLH DC Venture | |||
Operating Leased Assets [Line Items] | |||
Operating lease right-of-use assets | 10,800 | ||
Operating lease liabilities | $ 12,900 | ||
RLH Anaheim | |||
Operating Leased Assets [Line Items] | |||
Operating lease right-of-use assets | $ 31,400 | ||
Operating lease liabilities | $ 31,400 |
Leases - Balance Sheet Informat
Leases - Balance Sheet Information (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Operating Leases | ||
Operating lease right-of-use assets | $ 5,552 | $ 48,283 |
Operating lease liabilities, due within one year | 1,519 | 4,809 |
Operating lease liabilities, due after one year | 5,339 | 46,592 |
Total operating lease liabilities | 6,858 | 51,401 |
Finance Leases | ||
Property and equipment | 135 | 298 |
Less accumulated depreciation | (106) | (168) |
Property and equipment, net | 29 | 130 |
Other accrued liabilities | 27 | 74 |
Deferred income and other long-term liabilities | 6 | 76 |
Total finance lease liabilities | $ 33 | $ 150 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating lease expense | $ 816 | $ 1,133 | |
Short-term lease expense | 98 | 247 | |
Sublease income | (18) | 0 | |
Amortization of finance right-of-use assets | 8 | 35 | |
Interest on lease liabilities | 3 | 8 | |
Total finance lease expense | 11 | 43 | |
Total lease expense | 907 | 1,423 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Cash used in operating activities for operating leases | 848 | 1,169 | |
Cash used in operating activities for finance leases | 3 | 8 | |
Cash used in financing activities for finance leases | $ 13 | $ 34 | |
Weighted average remaining lease term (in years) | |||
Operating leases | 6 years | 69 years | |
Finance leases | 1 year | 3 years | |
Weighted average discount rate | |||
Operating leases | 5.80% | 7.20% | |
Finance leases | 5.70% | 11.90% |
Leases - Future Minimum Payment
Leases - Future Minimum Payments Due (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Operating Leases | ||
2020 (remainder) | $ 1,141 | |
2021 | 1,522 | |
2022 | 1,486 | |
2023 | 1,449 | |
2024 | 595 | |
Thereafter | 1,984 | |
Total lease payments | 8,177 | |
Less: imputed interest | 1,319 | |
Total liability | 6,858 | $ 51,401 |
Finance Leases | ||
2020 (remainder) | 20 | |
2021 | 14 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
Thereafter | 0 | |
Total lease payments | 34 | |
Less: imputed interest | 1 | |
Total liability | $ 33 | $ 150 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Gain from litigation settlement | $ 952 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Apr. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage per year | 25.00% | ||
Vesting period | 4 years | ||
Other than options, fair value | $ 0.2 | $ 1.2 | |
Additional compensation expense | $ 1.8 | ||
Period for recognition | 23 months | ||
Forfeited (in shares) | 51,393 | ||
Restricted stock units | Subsequent Event | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Additional compensation expense | $ 1.4 | ||
Period for recognition | 24 months | ||
Forfeited (in shares) | 73,613 | ||
2015 Stock Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized (in shares) | 2,900,000 | ||
Number of shares of common stock available for issuance (in shares) | 1,200,000 |
Stock Based Compensation - Stoc
Stock Based Compensation - Stock Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 373 | $ 916 |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 238 | 612 |
Unrestricted stock awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 112 | 129 |
Performance stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 15 | 147 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 0 | 22 |
Employee stock purchase plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 8 | $ 6 |
Stock Based Compensation - Rest
Stock Based Compensation - Restricted Stock Units (Details) - Restricted stock units - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Number of Shares | ||
Other than options outstanding (in shares) | 459,070 | |
Vested (in shares) | (120,017) | |
Forfeited (in shares) | (51,393) | |
Other than options outstanding (in shares) | 287,660 | 1,395,881 |
Weighted Average Grant Date Fair Value | ||
Beginning Balance (in dollars per share) | $ 9.03 | |
Vested (in dollars per share) | 8.51 | |
Forfeited (in dollars per share) | 8.45 | |
Ending Balance (in dollars per share) | $ 9.36 |
Stock Based Compensation - Perf
Stock Based Compensation - Performance Stock Units (Details) - Performance stock units $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($)$ / sharesshares | |
Number of Shares | |
Other than options outstanding (in shares) | |
Other than options outstanding (in shares) | 25,796 |
Weighted Average Grant Date Fair Value | |
Vested (in dollars per share) | $ / shares | $ 6.45 |
Fair value of PSUs vested in period | $ | $ 38 |
Stock Based Compensation - Unre
Stock Based Compensation - Unrestricted Stock Awards (Details) - Unrestricted stock awards - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares of unrestricted stock granted (in shares) | 30,883 | 15,355 |
Weighted average grant date fair value per share (in dollars per share) | $ 3.63 | $ 8.44 |
Earnings (Loss) Per Share - Sch
Earnings (Loss) Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | |
Numerator - basic and diluted: | |||||
Net income (loss) | $ (9,254) | $ (5,991) | $ (6,652) | $ (3,771) | $ (4,559) |
Net (income) loss attributable to noncontrolling interest | 1,155 | 286 | |||
Net income (loss) and comprehensive income (loss) attributable to RLH Corporation | $ (8,099) | $ (4,273) | |||
Denominator: | |||||
Weighted average shares - basic (in shares) | 25,199 | 24,603 | |||
Weighted average shares - diluted (in shares) | 25,199 | 24,603 | |||
Earnings (loss) per share - basic (in dollars per share) | $ (0.32) | $ (0.17) | |||
Earnings (loss) per share - diluted (in dollars per share) | $ (0.32) | $ (0.17) |
Earnings (Loss) Per Share - S_2
Earnings (Loss) Per Share - Schedule of Antidilutive Securities (Details) - shares | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Stock Options | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Dilutive awards outstanding (in shares) | 0 | 0 | |
Awards outstanding (in shares) | 0 | 81,130 | |
Restricted stock units | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Dilutive awards outstanding (in shares) | 0 | 0 | |
Awards outstanding (in shares) | 287,660 | 1,395,881 | 459,070 |
Performance stock units | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Dilutive awards outstanding (in shares) | 0 | 0 | |
Awards outstanding (in shares) | 25,796 | ||
Awards outstanding (in shares) | 0 | 427,638 | |
Warrants | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Dilutive awards outstanding (in shares) | 0 | 0 | |
Awards outstanding (in shares) | 0 | 442,533 | |
Stock Options | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive awards outstanding (in shares) | 0 | 81,130 | |
Restricted stock units | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive awards outstanding (in shares) | 287,660 | 1,395,881 | |
Total dilutive award outstanding (in shares) | 7,733 | 697,494 | |
Performance stock units | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive awards outstanding (in shares) | 0 | 427,638 | |
Total dilutive award outstanding (in shares) | 10,180 | 97,406 | |
Warrants | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive awards outstanding (in shares) | 0 | 442,533 | |
Total dilutive award outstanding (in shares) | 90,674 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit) | $ (752) | $ 82 |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Carrying Amount | ||
Financial assets: | ||
Notes receivable | $ 286 | $ 5,709 |
Financial liabilities: | ||
Debt | 5,600 | 33,248 |
Total finance lease obligations | 33 | 150 |
Fair Value | ||
Financial assets: | ||
Notes receivable | 286 | 5,709 |
Financial liabilities: | ||
Debt | 5,535 | 32,737 |
Total finance lease obligations | $ 33 | $ 150 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | May 31, 2019 | |
Related Party Transaction [Line Items] | ||||
Long-term debt, gross, current | $ 5,600 | $ 17,648 | ||
Secured Debt | RLH DC Venture (CPBF) - Option One | ||||
Related Party Transaction [Line Items] | ||||
Long-term debt, gross, current | $ 17,400 | |||
Number of shares held by affiliate | 500,000,000 | |||
Management Agreement | HEI Hotels And Resorts | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction | $ 197 | $ 228 |
Dispositions (Details)
Dispositions (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net income (loss) | $ (9,254) | $ (5,991) | $ (6,652) | $ (3,771) | $ (4,559) |
Net (income) loss attributable to noncontrolling interest | 1,155 | 286 | |||
Net income (loss) attributable to RLHC | (8,099) | (4,273) | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||
Business Combinations [Abstract] | |||||
Gain (loss) on disposal | 0 | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net income (loss) | 6,088 | (121) | |||
Net (income) loss attributable to noncontrolling interest | 1,134 | 240 | |||
Net income (loss) attributable to RLHC | $ 7,222 | $ 119 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | Apr. 21, 2020 | Apr. 02, 2020 |
Forecast | ||
Subsequent Event [Line Items] | ||
Severance expense in second quarter of 2020 | $ 0.4 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Positions eliminated | 40.00% | |
Total severance expense | $ 0.6 | |
Severance expense in first quarter of 2020 | $ 0.2 | |
Subsequent Event | Long-term Debt | Idaho First bank | ||
Subsequent Event [Line Items] | ||
Proceeds from loan | $ 4.2 |