Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 16, 2013 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 30-Sep-13 | |
Document Fiscal Year Focus | 2013 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | LaSalle Hotel Properties | |
Entity Central Index Key | 1053532 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 96,258,318 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets: | ||
Investment in hotel properties, net (Note 3) | $3,390,855 | $3,053,044 |
Note receivable (net of unamortized discount of $1,655 and $3,510, respectively) | 70,345 | 68,490 |
Property under development | 12,080 | 16,890 |
Cash and cash equivalents | 15,471 | 35,090 |
Restricted cash reserves (Note 5) | 18,198 | 17,414 |
Hotel receivables (net of allowance for doubtful accounts of $596 and $345, respectively) | 47,404 | 28,485 |
Deferred financing costs, net | 6,542 | 8,235 |
Deferred tax assets (Note 9) | 1,197 | 1,286 |
Prepaid expenses and other assets | 42,608 | 27,636 |
Total assets | 3,604,700 | 3,256,570 |
Liabilities: | ||
Borrowings under credit facilities (Note 4) | 461,000 | 153,000 |
Term loans (Note 4) | 477,500 | 477,500 |
Bonds payable (Note 4) | 42,500 | 42,500 |
Mortgage loans (including unamortized premium of $62 and $118, respectively) (Note 4) | 515,653 | 579,220 |
Accounts payable and accrued expenses | 159,608 | 101,365 |
Advance deposits | 21,626 | 16,422 |
Accrued interest | 3,752 | 4,319 |
Distributions payable | 31,142 | 23,314 |
Total liabilities | 1,712,781 | 1,397,640 |
Commitments and contingencies (Note 5) | ||
Shareholders’ Equity: | ||
Preferred shares of beneficial interest, $0.01 par value (liquidation preference of $237,472 and $227,472, respectively), 40,000,000 shares authorized; 9,498,888 and 9,098,888 shares issued and outstanding, respectively (Note 6) | 95 | 91 |
Common shares of beneficial interest, $0.01 par value, 200,000,000 shares authorized; 96,258,828 shares issued and 96,258,318 shares outstanding, and 95,480,358 shares issued and 95,445,444 shares outstanding, respectively (Note 6) | 962 | 955 |
Treasury shares, at cost (Note 6) | -14 | -886 |
Additional paid-in capital, net of offering costs of $74,167 and $71,640, respectively | 2,149,600 | 2,118,705 |
Accumulated other comprehensive income (loss) (Note 4) | 2,488 | -7,735 |
Distributions in excess of retained earnings | -267,089 | -258,004 |
Total shareholders’ equity | 1,886,042 | 1,853,126 |
Noncontrolling Interests: | ||
Noncontrolling interests in consolidated entities | 18 | 18 |
Noncontrolling interests of common units in Operating Partnership (Note 6) | 5,859 | 5,786 |
Total noncontrolling interests | 5,877 | 5,804 |
Total equity | 1,891,919 | 1,858,930 |
Total liabilities and equity | $3,604,700 | $3,256,570 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, except Share data, unless otherwise specified | ||||
Statement of Financial Position [Abstract] | ||||
Discount on note receivable | $1,655 | $3,510 | ||
Allowance for doubtful accounts | 596 | 345 | ||
Unamortized premium | 62 | [1] | 118 | [1] |
Preferred shares, par value | $0.01 | $0.01 | ||
Preferred shares, liquidation preference | 237,472 | 227,472 | ||
Preferred shares, shares authorized | 40,000,000 | 40,000,000 | ||
Preferred shares, shares issued | 9,498,888 | 9,098,888 | ||
Preferred shares, shares outstanding | 9,498,888 | 9,098,888 | ||
Common shares of beneficial interest, par value | $0.01 | $0.01 | ||
Common shares of beneficial interest, shares authorized | 200,000,000 | 200,000,000 | ||
Common shares of beneficial interest, shares issued | 96,258,828 | 95,480,358 | ||
Common shares of beneficial interest, shares outstanding | 96,258,318 | 95,445,444 | ||
Offering costs | $74,167 | $71,640 | ||
[1] | Mortgage debt includes an unamortized loan premium on the mortgage loan on Hotel Deca of $62 as of September 30, 2013 and $118 as of December 31, 2012. |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations and Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Hotel operating revenues: | ||||
Room | $189,619 | $167,437 | $495,696 | $449,315 |
Food and beverage | 60,022 | 52,896 | 175,397 | 156,298 |
Other operating department | 18,289 | 15,410 | 48,001 | 42,105 |
Total hotel operating revenues | 267,930 | 235,743 | 719,094 | 647,718 |
Other income | 2,056 | 1,254 | 6,156 | 3,693 |
Total revenues | 269,986 | 236,997 | 725,250 | 651,411 |
Hotel operating expenses: | ||||
Room | 44,911 | 39,662 | 124,789 | 112,203 |
Food and beverage | 41,886 | 37,751 | 121,871 | 111,488 |
Other direct | 6,146 | 5,659 | 17,166 | 15,843 |
Other indirect (Note 8) | 62,121 | 54,532 | 175,045 | 157,725 |
Total hotel operating expenses | 155,064 | 137,604 | 438,871 | 397,259 |
Depreciation and amortization | 40,634 | 31,480 | 107,182 | 92,911 |
Real estate taxes, personal property taxes and insurance | 13,489 | 11,254 | 38,623 | 32,930 |
Ground rent (Note 5) | 3,249 | 2,627 | 8,535 | 6,613 |
General and administrative | 5,513 | 5,172 | 16,224 | 14,635 |
Acquisition transaction costs (Note 3) | 2,687 | 156 | 2,687 | 4,057 |
Other expenses | 1,749 | 922 | 3,918 | 2,391 |
Total operating expenses | 222,385 | 189,215 | 616,040 | 550,796 |
Operating income | 47,601 | 47,782 | 109,210 | 100,615 |
Interest income | 2,448 | 2,060 | 7,212 | 2,086 |
Interest expense | -14,737 | -14,110 | -42,517 | -38,391 |
Income before income tax expense | 35,312 | 35,732 | 73,905 | 64,310 |
Income tax expense (Note 9) | -2,564 | -4,943 | -2,481 | -6,920 |
Net income | 32,748 | 30,789 | 71,424 | 57,390 |
Net income attributable to noncontrolling interests: | ||||
Noncontrolling interests in consolidated entities | 0 | 0 | -8 | 0 |
Noncontrolling interests of common units in Operating Partnership (Note 6) | -108 | -116 | -243 | -224 |
Net income attributable to noncontrolling interests | -108 | -116 | -251 | -224 |
Net income attributable to the Company | 32,640 | 30,673 | 71,173 | 57,166 |
Distributions to preferred shareholders | -4,106 | -4,166 | -13,278 | -17,567 |
Issuance costs of redeemed preferred shares (Note 6) | 0 | 0 | -1,566 | -4,417 |
Net income attributable to common shareholders | 28,534 | 26,507 | 56,329 | 35,182 |
Earnings per Common Share - Basic: | ||||
Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares | $0.30 | $0.31 | $0.59 | $0.41 |
Earnings per Common Share - Diluted: | ||||
Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares | $0.30 | $0.31 | $0.59 | $0.41 |
Weighted average number of common shares outstanding: | ||||
Basic | 95,890,474 | 85,876,584 | 95,510,088 | 85,278,331 |
Diluted | 96,082,340 | 86,056,957 | 95,681,763 | 85,449,543 |
Comprehensive Income: | ||||
Net income | 32,748 | 30,789 | 71,424 | 57,390 |
Other comprehensive (loss) income : | ||||
Unrealized (loss) gain on interest rate derivative instruments (Note 4) | -2,345 | -3,839 | 10,255 | -8,534 |
Comprehensive income | 30,403 | 26,950 | 81,679 | 48,856 |
Comprehensive income attributable to noncontrolling interests: | ||||
Noncontrolling interests in consolidated entities | 0 | 0 | -8 | 0 |
Noncontrolling interests of common units in Operating Partnership (Note 6) | -101 | -103 | -275 | -195 |
Comprehensive income attributable to noncontrolling interests | -101 | -103 | -283 | -195 |
Comprehensive income attributable to the Company | $30,302 | $26,847 | $81,396 | $48,661 |
Consolidated_Statements_Of_Equ
Consolidated Statements Of Equity (USD $) | Total | Total Shareholders' Equity [Member] | Preferred Shares Of Beneficial Interest [Member] | Common Shares Of Beneficial Interest [Member] | Treasury Shares [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Distributions In Excess Of Retained Earnings [Member] | Total Noncontrolling Interests [Member] | Noncontrolling Interests In Consolidated Entities [Member] | Noncontrolling Interests Of Common Units In Operating Partnership [Member] |
In Thousands, unless otherwise specified | |||||||||||
Balance, Beginning of year at Dec. 31, 2011 | $1,771,243 | $1,765,613 | $158 | $851 | ($24,543) | $2,029,145 | $0 | ($239,998) | $5,630 | $17 | $5,613 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Issuance of shares, net of offering costs | 64,303 | 64,303 | 0 | 12 | 22,847 | 41,444 | 0 | 0 | 0 | 0 | 0 |
Redemption of preferred shares | -166,750 | -166,750 | -67 | 0 | 0 | -162,266 | 0 | -4,417 | 0 | 0 | 0 |
Repurchase of common shares into treasury | -1,210 | -1,210 | 0 | 0 | -1,210 | 0 | 0 | 0 | 0 | 0 | 0 |
Options exercised | 74 | 74 | 0 | 0 | 0 | 74 | 0 | 0 | 0 | 0 | 0 |
Adjustments to issuance of units | -746 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -746 | 0 | -746 |
Deferred compensation, net | 3,598 | 3,598 | 0 | 0 | 2,455 | 1,143 | 0 | 0 | 0 | 0 | 0 |
Adjustments to noncontrolling interests | 0 | -785 | 0 | 0 | 0 | -785 | 0 | 0 | 785 | 0 | 785 |
Distributions on issued long-term performance-based share awards | -56 | -56 | 0 | 0 | 0 | 0 | 0 | -56 | 0 | 0 | 0 |
Distributions on common shares/units ($0.51 and $0.68 per share/unit, respectively) | -44,136 | -43,985 | 0 | 0 | 0 | 0 | 0 | -43,985 | -151 | 0 | -151 |
Distributions on preferred shares | -17,575 | -17,567 | 0 | 0 | 0 | 0 | 0 | -17,567 | -8 | -8 | 0 |
Net income | 57,390 | 57,166 | 0 | 0 | 0 | 0 | 0 | 57,166 | 224 | 0 | 224 |
Other comprehensive (loss) income : | |||||||||||
Unrealized gain (loss) on interest rate derivative instruments | -8,534 | -8,505 | 0 | 0 | 0 | 0 | -8,505 | 0 | -29 | 0 | -29 |
Balance, End of period at Sep. 30, 2012 | 1,657,601 | 1,651,896 | 91 | 863 | -451 | 1,908,755 | -8,505 | -248,857 | 5,705 | 9 | 5,696 |
Balance, Beginning of year at Dec. 31, 2012 | 1,858,930 | 1,853,126 | 91 | 955 | -886 | 2,118,705 | -7,735 | -258,004 | 5,804 | 18 | 5,786 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Issuance of shares, net of offering costs | 126,126 | 126,126 | 44 | 7 | 262 | 125,813 | 0 | 0 | 0 | 0 | 0 |
Redemption of preferred shares | -100,000 | -100,000 | -40 | 0 | 0 | -98,394 | 0 | -1,566 | 0 | 0 | 0 |
Repurchase of common shares into treasury | -3 | -3 | 0 | 0 | -3 | 0 | 0 | 0 | 0 | 0 | 0 |
Deferred compensation, net | 4,088 | 4,088 | 0 | 0 | 613 | 3,475 | 0 | 0 | 0 | 0 | 0 |
Adjustments to noncontrolling interests | 0 | 1 | 0 | 0 | 0 | 1 | 0 | 0 | -1 | 0 | -1 |
Distributions on issued long-term performance-based share awards | -20 | -20 | 0 | 0 | 0 | 0 | 0 | -20 | 0 | 0 | 0 |
Distributions on common shares/units ($0.51 and $0.68 per share/unit, respectively) | -65,595 | -65,394 | 0 | 0 | 0 | 0 | 0 | -65,394 | -201 | 0 | -201 |
Distributions on preferred shares | -13,286 | -13,278 | 0 | 0 | 0 | 0 | 0 | -13,278 | -8 | -8 | 0 |
Net income | 71,424 | 71,173 | 0 | 0 | 0 | 0 | 0 | 71,173 | 251 | 8 | 243 |
Other comprehensive (loss) income : | |||||||||||
Unrealized gain (loss) on interest rate derivative instruments | 10,255 | 10,223 | 0 | 0 | 0 | 0 | 10,223 | 0 | 32 | 0 | 32 |
Balance, End of period at Sep. 30, 2013 | $1,891,919 | $1,886,042 | $95 | $962 | ($14) | $2,149,600 | $2,488 | ($267,089) | $5,877 | $18 | $5,859 |
Consolidated_Statements_Of_Equ1
Consolidated Statements Of Equity (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | |
Statement of Stockholders' Equity [Abstract] | |||||
Distributions on common shares (per share) | $0.20 | $0.20 | $0.20 | $0.68 | $0.51 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ||
Net income | $71,424 | $57,390 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 107,182 | 92,911 |
Amortization of deferred financing costs, mortgage premium and note receivable discount | -215 | 806 |
Deferred compensation | 4,088 | 3,598 |
Deferred income tax expense | 89 | 3,781 |
Allowance for doubtful accounts | 251 | 82 |
Other | 449 | 0 |
Changes in assets and liabilities: | ||
Restricted cash reserves | 738 | -877 |
Hotel receivables | -18,982 | -16,418 |
Prepaid expenses and other assets | -12,379 | -6,938 |
Accounts payable and accrued expenses | 15,615 | 14,225 |
Advance deposits | 3,081 | 3,608 |
Accrued interest | -567 | 377 |
Net cash provided by operating activities | 170,774 | 152,545 |
Cash flows from investing activities: | ||
Improvements and additions to properties | -87,830 | -51,425 |
Acquisition of properties | -302,135 | -142,944 |
Purchase of office furniture and equipment | -40 | -63 |
Acquisition of note receivable | 0 | -67,416 |
Restricted cash reserves | -22 | 1,130 |
Property insurance proceeds | 436 | 0 |
Net cash used in investing activities | -389,591 | -260,718 |
Cash flows from financing activities: | ||
Borrowings under credit facilities | 466,406 | 386,920 |
Repayments under credit facilities | -158,406 | -442,334 |
Borrowings on term loans | 0 | 377,500 |
Repayments of mortgage loans | -63,511 | -63,292 |
Payment of deferred financing costs | -4 | -4,202 |
Purchase of treasury shares | -3 | -1,210 |
Proceeds from exercise of stock options | 0 | 74 |
Proceeds from issuance of preferred shares | 110,000 | 0 |
Payment of preferred offering costs | -3,648 | 0 |
Proceeds from issuance of common shares | 19,943 | 64,786 |
Payment of common offering costs | -588 | -977 |
Distributions on issued long-term performance-based share awards | -20 | -56 |
Redemption of preferred shares | -100,000 | -166,750 |
Distributions on preferred shares | -13,345 | -20,811 |
Distributions on common shares/units | -57,626 | -36,017 |
Net cash provided by financing activities | 199,198 | 93,631 |
Net change in cash and cash equivalents | -19,619 | -14,542 |
Cash and cash equivalents, beginning of period | 35,090 | 20,225 |
Cash and cash equivalents, end of period | $15,471 | $5,683 |
Investment_in_Hotel_Properties
Investment in Hotel Properties | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Investments [Abstract] | ||||||||||||||||||
Investment In Hotel Properties | Investment in Hotel Properties | |||||||||||||||||
Investment in hotel properties as of September 30, 2013 and December 31, 2012 consists of the following: | ||||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||
Land | $ | 602,696 | $ | 480,705 | ||||||||||||||
Buildings and improvements | 3,181,324 | 2,932,532 | ||||||||||||||||
Furniture, fixtures and equipment | 538,013 | 472,052 | ||||||||||||||||
Investment in hotel properties, gross | 4,322,033 | 3,885,289 | ||||||||||||||||
Accumulated depreciation | (931,178 | ) | (832,245 | ) | ||||||||||||||
Investment in hotel properties, net | $ | 3,390,855 | $ | 3,053,044 | ||||||||||||||
Depreciation expense was $40,521 and $106,854 for the three and nine months ended September 30, 2013, respectively, and $31,336 and $92,483 for the three and nine months ended September 30, 2012, respectively. | ||||||||||||||||||
Acquisitions | ||||||||||||||||||
During the third quarter of 2013, the Company acquired 100% interests in four full-service hotels, each of which is leased to LHL. The Company recorded the acquisitions at fair value using model-derived valuations, with the estimated fair value recorded to investment in hotel properties, capital lease obligations, and hotel working capital assets and liabilities. The Company has not yet finalized its determination of fair value of its acquisition properties as the Company is awaiting certain valuation-related information. A final determination of required fair value adjustments will be made during the fourth quarter of 2013. In connection with the acquisitions, the Company incurred acquisition transaction costs that were expensed as incurred. The following is a summary of the acquisitions: | ||||||||||||||||||
Acquisition | ||||||||||||||||||
Transaction Costs | ||||||||||||||||||
Hotel Name | Acquisition Date | Number of | Location | Purchase | Manager | For the three and nine months ended September 30, 2013 | ||||||||||||
Rooms | Price | |||||||||||||||||
Harbor Court Hotel | 1-Aug-13 | 131 | San Francisco, CA | $ | 36,875 | Kimpton Hotel & Restaurant Group, L.L.C. | $ | 578 | ||||||||||
Hotel Triton | 1-Aug-13 | 140 | San Francisco, CA | 10,900 | Kimpton Hotel & Restaurant Group, L.L.C. | 115 | ||||||||||||
Serrano Hotel | 21-Aug-13 | 236 | San Francisco, CA | 71,500 | Kimpton Hotel & Restaurant Group, L.L.C. | 1,010 | ||||||||||||
Southernmost Hotel Collection | August 27, 2013 | 260 | Key West, FL | 184,500 | Highgate Hotels | 984 | ||||||||||||
Total | $ | 303,775 | $ | 2,687 | ||||||||||||||
Harbor Court Hotel and Hotel Triton are subject to leases of land and building, which were determined to be capital leases (see Note 5). Accordingly, at acquisition, the Company recorded capital assets related to its leasehold interests of $54,563 and $37,253 for Harbor Court Hotel and Hotel Triton, respectively, based upon the estimated fair values of the rights to use the leased properties for the remaining terms. The capital assets, net of accumulated depreciation for Harbor Court Hotel of $196 and Hotel Triton of $130, are included within investment in hotel properties, net, in the accompanying consolidated balance sheets as of September 30, 2013. Additionally, the Company recorded furniture, fixtures and equipment and inventory of $736 and $1,399 for Harbor Court Hotel and Hotel Triton, respectively, as part of the acquisitions. | ||||||||||||||||||
The sources of the funding for the above acquisitions were borrowings under the Company’s senior unsecured credit facility. Total revenues and net loss from the hotels acquired during 2013 of $8,570 and $682, respectively, are included in the accompanying consolidated statements of operations and comprehensive income for the three and nine months ended September 30, 2013. | ||||||||||||||||||
In connection with the acquisition of Hotel Palomar, Washington, DC on March 8, 2012, the Company incurred acquisition transaction costs of zero and $3,594 that were expensed as incurred during the three and nine months ended September 30, 2012, respectively, which expenses are included in the accompanying consolidated statements of operations and comprehensive income. | ||||||||||||||||||
During the first quarter of 2012, the Company finalized its determination of fair value of the real estate assets acquired of Park Central Hotel, upon receiving certain valuation-related information. The final determination resulted in a decrease of $746 to investment in hotel properties and noncontrolling interests of common units in Operating Partnership. | ||||||||||||||||||
In connection with the acquisition of Viceroy Santa Monica on March 16, 2011, the Company incurred acquisition transaction costs of zero and $100 during the three and nine months ended September 30, 2012, respectively, related to the finalization of acquisition accounting, which expenses are included in the accompanying consolidated statements of operations and comprehensive income. | ||||||||||||||||||
In connection with the acquisition of the mezzanine loan secured by pledges of ownership interests of the entities that own the underlying hotel properties, Shutters on the Beach and Casa Del Mar, in Santa Monica, CA, on July 13, 2012, the Company incurred acquisition transaction costs of $156 and $363 during the three and nine months ended September 30, 2012, respectively, which expenses are included in the accompanying consolidated statements of operations and comprehensive income. | ||||||||||||||||||
Condensed Pro Forma Financial Information | ||||||||||||||||||
The results of operations of acquired properties are included in the consolidated statements of operations and comprehensive income beginning on their respective acquisition dates. The following unaudited condensed pro forma financial information is presented as if the following 2012 and 2013 acquisitions had been consummated prior to January 1, 2011 and 2012, respectively, the beginning of the reporting period prior to acquisition. In addition, for purposes of the unaudited condensed pro forma financial information only, the February 1, 2012 through February 14, 2012 issuance of 1,714,939 common shares of beneficial interest, the May 18, 2012 through May 30, 2012 issuance of 641,069 common shares of beneficial interest, the August 8, 2012 issuance of 3,100 common shares of beneficial interest, the December 19, 2012 issuance of 9,200,000 shares of beneficial interest and the May 24, 2013 through May 31, 2013 issuance of 721,706 common shares of beneficial interest are presented as if the issuances had occurred as of January 1, 2011. No adjustments have been made to the unaudited condensed pro forma financial information presented below for the 2012 preferred share redemptions or the 2013 preferred share issuance and redemption, since those transactions have no relation to the acquisitions. The unaudited condensed pro forma financial information is for comparative purposes only and not necessarily indicative of what actual results of operations of the Company would have been had the 2012 and 2013 acquisitions been consummated prior to January 1, 2011 and 2012, respectively, nor does it purport to represent the results of operations for future periods. | ||||||||||||||||||
Adjustments have been made to the unaudited pro forma financial information for the following acquisitions: | ||||||||||||||||||
Property | Acquisition Date | |||||||||||||||||
Hotel Palomar, Washington, DC | March 8, 2012 | |||||||||||||||||
L'Auberge Del Mar | December 6, 2012 | |||||||||||||||||
The Liberty Hotel | December 28, 2012 | |||||||||||||||||
Harbor Court Hotel | August 1, 2013 | |||||||||||||||||
Hotel Triton | August 1, 2013 | |||||||||||||||||
Serrano Hotel | August 21, 2013 | |||||||||||||||||
Southernmost Hotel Collection | August 27, 2013 | |||||||||||||||||
The unaudited condensed pro forma financial information for the three and nine months ended September 30, 2013 and 2012 is as follows: | ||||||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||
Total revenues | $ | 278,024 | $ | 269,571 | $ | 769,879 | $ | 750,963 | ||||||||||
Net income | $ | 32,821 | $ | 33,257 | $ | 74,771 | $ | 63,416 | ||||||||||
Net income attributable to common shareholders | $ | 28,607 | $ | 28,975 | $ | 59,676 | $ | 41,208 | ||||||||||
Earnings per common share - basic | $ | 0.3 | $ | 0.3 | $ | 0.62 | $ | 0.43 | ||||||||||
Earnings per common share - diluted | $ | 0.3 | $ | 0.3 | $ | 0.62 | $ | 0.43 | ||||||||||
Weighted average number of common shares outstanding: | ||||||||||||||||||
Basic | 95,890,474 | 95,799,571 | 95,889,692 | 95,774,870 | ||||||||||||||
Diluted | 96,082,340 | 95,979,943 | 96,061,368 | 95,946,082 | ||||||||||||||
Organization
Organization | 9 Months Ended |
Sep. 30, 2013 | |
Organization [Abstract] | |
Organization | Organization |
LaSalle Hotel Properties (the “Company”), a Maryland real estate investment trust organized on January 15, 1998, primarily buys, owns, redevelops and leases upscale and luxury full-service hotels located in convention, resort and major urban business markets. The Company is a self-administered and self-managed real estate investment trust ("REIT") as defined in the Internal Revenue Code of 1986, as amended (the “Code”). As a REIT, the Company is generally not subject to federal corporate income tax on that portion of its net income that is currently distributed to its shareholders. The income of LaSalle Hotel Lessee, Inc. (together with its wholly owned subsidiaries, “LHL”), the Company’s wholly owned taxable REIT subsidiary ("TRS"), is subject to taxation at normal corporate rates. | |
As of September 30, 2013, the Company owned interests in 45 hotels with approximately 11,400 guest rooms located in 10 states and the District of Columbia. Each hotel is leased to LHL (see Note 8) under a participating lease that provides for rental payments equal to the greater of (i) a base rent or (ii) a participating rent based on hotel revenues. The LHL leases expire between December 2013 and December 2016. Lease revenue from LHL is eliminated in consolidation. A third-party non-affiliated hotel operator manages each hotel pursuant to a hotel management agreement. | |
Substantially all of the Company’s assets are held directly or indirectly by, and all of its operations are conducted through, LaSalle Hotel Operating Partnership, L.P. (the “Operating Partnership”). The Company is the sole general partner of the Operating Partnership. The Company owned, through a combination of direct and indirect interests, 99.7% of the common units of the Operating Partnership at September 30, 2013. The remaining 0.3% is held by limited partners who held 296,300 common units of the Operating Partnership at September 30, 2013. See Note 6 for additional disclosures on common operating partnership units. |
Summary_Of_Significant_Account
Summary Of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | Summary of Significant Accounting Policies |
The accompanying unaudited interim consolidated financial statements and related notes have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and in conformity with the rules and regulations of the Securities and Exchange Commission (“SEC”) applicable to interim financial information. As such, certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been omitted in accordance with the rules and regulations of the SEC. These unaudited consolidated financial statements, in the opinion of management, include all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the consolidated balance sheets, consolidated statements of operations and comprehensive income (loss), consolidated statements of equity and consolidated statements of cash flows for the periods presented. Operating results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013 due to seasonal and other factors. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. | |
Basis of Presentation | |
The consolidated financial statements include the accounts of the Company, the Operating Partnership, LHL and their subsidiaries in which they have a controlling interest, including joint ventures. All significant intercompany balances and transactions have been eliminated. | |
Use of Estimates | |
The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and the amounts of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. | |
Substantially all of the Company’s revenues and expenses are generated by the operations of the individual hotels. The Company records revenues and expenses that are estimated by the hotel operators to produce quarterly financial statements because the management contracts do not require the hotel operators to submit actual results within a time frame that permits the Company to use actual results when preparing its Quarterly Reports on Form 10-Q for filing by the deadline prescribed by the SEC. Generally, the Company records actual revenue and expense amounts for the first two months of each quarter and revenue and expense estimates for the last month of each quarter. Each quarter, the Company reviews the estimated revenue and expense amounts provided by the hotel operators for reasonableness based upon historical results for prior periods and internal Company forecasts. The Company records any differences between recorded estimated amounts and actual amounts in the following quarter; historically, these differences have not been material. The Company believes the quarterly revenues and expenses, recorded on the Company’s consolidated statements of operations and comprehensive income (loss) based on an aggregate estimate, are fairly stated. | |
Share-Based Compensation | |
From time to time, the Company awards nonvested shares under the 2009 Equity Incentive Plan (“2009 Plan”), which has approximately five years remaining, as compensation to officers, employees and non-employee trustees (see Note 7). The shares issued to officers and employees vest over three to nine years. The Company generally recognizes compensation expense for nonvested shares on a straight-line basis over the vesting period based upon the fair market value of the shares on the date of issuance, adjusted for forfeitures. | |
Noncontrolling Interests | |
The Company's financial statements include entities in which the Company has a controlling financial interest. Noncontrolling interest is the portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. Such noncontrolling interests are reported on the consolidated balance sheets within equity, separately from the Company's equity. On the consolidated statements of operations and comprehensive income (loss), revenues, expenses and net income or loss from less-than-wholly-owned subsidiaries are reported at the consolidated amounts, including both the amounts attributable to the Company and noncontrolling interests. Income or loss is allocated to noncontrolling interests based on their weighted average ownership percentage for the applicable period. Consolidated statements of equity include beginning balances, activity for the period and ending balances for shareholders’ equity, noncontrolling interests and total equity. | |
However, the Company’s securities that are redeemable for cash or other assets at the option of the holder, not solely within the control of the issuer, must be classified outside of permanent equity. The Company makes this determination based on terms in applicable agreements, specifically in relation to redemption provisions. Additionally, with respect to noncontrolling interests for which the Company has a choice to settle the contract by delivery of its own shares, the Company evaluates whether the Company controls the actions or events necessary to issue the maximum number of shares that could be required to be delivered under share settlement of the contract. | |
As of September 30, 2013, the consolidated results of the Company include the following ownership interests held by owners other than the Company: (i) the common units in the Operating Partnership held by third parties, (ii) the outside preferred ownership interests in a subsidiary and (iii) the outside ownership interest in a joint venture. | |
Notes Receivable | |
Notes receivable are carried at cost, net of any premiums or discounts which are recognized as an adjustment of yield over the remaining life of the note using the effective interest method. Interest income is recorded on the accrual basis consistent with the terms of the notes receivable. A note is deemed to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all principal and interest contractually due. Interest previously accrued but not collected becomes part of the Company's recorded investment in the note receivable for purposes of assessing impairment. The Company applies interest payments received on non-accrual notes receivable first to accrued interest and then as interest income. Notes receivable return to accrual status when contractually current and the collection of future payments is reasonably assured. |
LongTerm_Debt
Long-Term Debt | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Long-term Debt, Other Disclosures [Abstract] | ||||||||||||||||||||
Long-Term Debt | Long-Term Debt | |||||||||||||||||||
Debt Summary | ||||||||||||||||||||
Debt as of September 30, 2013 and December 31, 2012 consisted of the following: | ||||||||||||||||||||
Balance Outstanding as of | ||||||||||||||||||||
Debt | Interest | Maturity | September 30, | December 31, | ||||||||||||||||
Rate | Date | 2013 | 2012 | |||||||||||||||||
Credit facilities | ||||||||||||||||||||
Senior unsecured credit facility | Floating (a) | January 2016 (a) | $ | 461,000 | $ | 153,000 | ||||||||||||||
LHL unsecured credit facility | Floating (b) | January 2016 (b) | 0 | 0 | ||||||||||||||||
Total borrowings under credit facilities | 461,000 | 153,000 | ||||||||||||||||||
Term loans | ||||||||||||||||||||
First Term Loan | Floating (c) | May-19 | 177,500 | 177,500 | ||||||||||||||||
Second Term Loan | Floating (c) | Aug-17 | 300,000 | 300,000 | ||||||||||||||||
Total term loans | 477,500 | 477,500 | ||||||||||||||||||
Massport Bonds | ||||||||||||||||||||
Hyatt Boston Harbor (taxable) | Floating (d) | Mar-18 | 5,400 | 5,400 | ||||||||||||||||
Hyatt Boston Harbor (tax exempt) | Floating (d) | Mar-18 | 37,100 | 37,100 | ||||||||||||||||
Total bonds payable | 42,500 | 42,500 | ||||||||||||||||||
Mortgage loans | ||||||||||||||||||||
Hotel Solamar | 5.49% | December 2013 (e) | 0 | 60,134 | ||||||||||||||||
Hotel Deca | 6.28% | August 2014 (f) | 8,886 | 9,111 | ||||||||||||||||
Westin Copley Place | 5.28% | Sep-15 | 210,000 | 210,000 | ||||||||||||||||
Westin Michigan Avenue | 5.75% | Apr-16 | 135,795 | 137,172 | ||||||||||||||||
Indianapolis Marriott Downtown | 5.99% | Jul-16 | 99,203 | 100,142 | ||||||||||||||||
Hotel Roger Williams | 6.31% | Aug-16 | 61,707 | 62,543 | ||||||||||||||||
Mortgage loans at stated value | 515,591 | 579,102 | ||||||||||||||||||
Unamortized loan premium (g) | 62 | 118 | ||||||||||||||||||
Total mortgage loans | 515,653 | 579,220 | ||||||||||||||||||
Total debt | $ | 1,496,653 | $ | 1,252,220 | ||||||||||||||||
(a) | Borrowings bear interest at floating rates equal to, at the Company’s option, either (i) LIBOR plus an applicable margin, or (ii) an Adjusted Base Rate plus an applicable margin. As of September 30, 2013, the rate, including the applicable margin, for the Company’s outstanding LIBOR borrowings of $461,000 was 2.19%. As of December 31, 2012, the rate, including the applicable margin, for the Company's outstanding LIBOR borrowing of $153,000 was 2.22%. The Company has the option, pursuant to certain terms and conditions, to extend the maturity date to January 2017. | |||||||||||||||||||
(b) | Borrowings bear interest at floating rates equal to, at LHL’s option, either (i) LIBOR plus an applicable margin, or (ii) an Adjusted Base Rate plus an applicable margin. There were no borrowings outstanding at September 30, 2013 or December 31, 2012. LHL has the option, subject to certain terms and conditions, to extend the maturity date to January 2017. | |||||||||||||||||||
(c) | Term loans bear interest at floating rates equal to LIBOR plus an applicable margin. The Company entered into separate interest rate swap agreements for the full seven-year term of the First Term Loan (as defined below) and the full five-year term, including a one-year extension subject to certain conditions, of the Second Term Loan (as defined below), resulting in fixed all-in interest rates of 3.87% and 2.68%, respectively, at the Company's current leverage ratio (as defined in the swap agreements). | |||||||||||||||||||
(d) | The Massport Bonds are secured by letters of credit issued by the Royal Bank of Scotland that expire in February 2014, pursuant to an amendment to the agreement governing the letters of credit. The Royal Bank of Scotland letters of credit also have three one-year extension options and are secured by the Hyatt Boston Harbor (formerly the Harborside Hyatt Conference Center & Hotel). The Company has given notification of its intention to exercise the first extension option on the letters of credit. The bonds bear interest based on weekly floating rates. The interest rates as of September 30, 2013 were 0.70% and 0.11% for the $5,400 and $37,100 bonds, respectively. The interest rates as of December 31, 2012 were 0.65% and 0.17% for the $5,400 and $37,100 bonds, respectively. The Company also incurs an annual letter of credit fee of a variable rate based on an applicable margin as defined in the Company's senior unsecured credit agreement. | |||||||||||||||||||
(e) | The Company repaid the mortgage loan on June 3, 2013 through borrowings on its senior unsecured credit facility. | |||||||||||||||||||
(f) | The Company intends to repay the mortgage loan through borrowings on its credit facilities upon maturity. | |||||||||||||||||||
(g) | Mortgage debt includes an unamortized loan premium on the mortgage loan on Hotel Deca of $62 as of September 30, 2013 and $118 as of December 31, 2012. | |||||||||||||||||||
A summary of the Company’s interest expense and weighted average interest rates for variable rate debt for the three and nine months ended September 30, 2013 and 2012 is as follows: | ||||||||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Interest Expense: | ||||||||||||||||||||
Interest incurred | $ | 14,271 | $ | 13,611 | $ | 41,342 | $ | 37,296 | ||||||||||||
Amortization of deferred financing costs | 556 | 526 | 1,696 | 1,354 | ||||||||||||||||
Capitalized interest | (90 | ) | (27 | ) | (521 | ) | (259 | ) | ||||||||||||
Interest expense | $ | 14,737 | $ | 14,110 | $ | 42,517 | $ | 38,391 | ||||||||||||
Weighted Average Interest Rates for Variable Rate Debt: | ||||||||||||||||||||
Senior unsecured credit facility | 2.1 | % | 2.3 | % | 2.1 | % | 2.2 | % | ||||||||||||
LHL unsecured credit facility | 1.2 | % | 2.2 | % | 2 | % | 2.1 | % | ||||||||||||
Massport Bonds | 0.2 | % | 0.2 | % | 0.2 | % | 0.3 | % | ||||||||||||
Credit Facilities | ||||||||||||||||||||
The Company has a $750,000 senior unsecured credit facility with a syndicate of banks. The credit facility matures on January 30, 2016, subject to a one-year extension that the Company may exercise at its option, pursuant to certain terms and conditions, including payment of an extension fee. The credit facility includes an accordion feature which, subject to certain conditions, entitles the Company to request additional lender commitments, allowing for total commitments up to $1,000,000. Borrowings under the credit facility bear interest at floating rates equal to, at the Company’s option, either (i) LIBOR plus an applicable margin, or (ii) an Adjusted Base Rate plus an applicable margin. Additionally, the Company is required to pay a variable unused commitment fee of 0.30% or 0.40% of the unused portion of the credit facility, depending on the average daily unused portion of the credit facility. | ||||||||||||||||||||
LHL has a $25,000 unsecured revolving credit facility to be used for working capital and general lessee corporate purposes. The LHL credit facility matures on January 30, 2016, subject to a one-year extension that LHL may exercise at its option, pursuant to certain terms and conditions, including payment of an extension fee. Borrowings under the LHL credit facility bear interest at floating rates equal to, at LHL’s option, either (i) LIBOR plus an applicable margin, or (ii) an Adjusted Base Rate plus an applicable margin. Additionally, LHL is required to pay a variable unused commitment fee of 0.30% or 0.40% of the unused portion of the credit facility, depending on the average daily unused portion of the LHL credit facility. | ||||||||||||||||||||
The Company's senior unsecured credit facility and LHL's unsecured credit facility contain certain financial covenants relating to net worth requirements, debt ratios and fixed charge coverage and other limitations that restrict the Company's ability to make distributions or other payments to its shareholders upon events of default. | ||||||||||||||||||||
Term Loans | ||||||||||||||||||||
On May 16, 2012, the Company entered into a $177,500 unsecured loan with a seven-year term maturing on May 16, 2019 (the “First Term Loan”). The First Term Loan bears interest at a variable rate, but was hedged to a fixed interest rate based on the Company's current leverage ratio (as defined in the swap agreements), which interest rate was 3.87% at September 30, 2013, for the full seven-year term (see “Derivative and Hedging Activities” below). | ||||||||||||||||||||
On August 2, 2012, the Company entered into a $300,000 unsecured loan with a five-year term maturing on August 2, 2017, including a one-year extension subject to certain conditions (the "Second Term Loan"). The Second Term Loan bears interest at a variable rate, but was hedged to a fixed interest rate based on the Company's current leverage ratio (as defined in the swap agreements), which interest rate was 2.68% at September 30, 2013, for the full five-year term (see "Derivative and Hedging Activities below"). | ||||||||||||||||||||
The Company's term loans contain certain financial covenants relating to net worth requirements, debt ratios and fixed charge coverage and other limitations that restrict the Company's ability to make distributions or other payments to its shareholders upon events of default. | ||||||||||||||||||||
Derivative and Hedging Activities | ||||||||||||||||||||
The Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Unrealized gains and losses on the effective portion of hedging instruments are reported in other comprehensive income (loss) ("OCI"). Ineffective portions of changes in the fair value of a cash flow hedge are recognized as interest expense. Amounts reported in accumulated other comprehensive income (loss) ("AOCI") related to currently outstanding derivatives are recognized as an adjustment to income (loss) as interest payments are made on the Company's variable rate debt. Effective May 16, 2012, the Company entered into three interest rate swap agreements with an aggregate notional amount of $177,500 for the First Term Loan's full seven-year term, resulting in a fixed all-in interest rate based on the Company's current leverage ratio (as defined in the swap agreements), which interest rate was 3.87% at September 30, 2013. Effective August 2, 2012, the Company entered into five interest rate swap agreements with an aggregate notional amount of $300,000 for the Second Term Loan's full five-year term, including a one-year extension subject to certain conditions, resulting in a fixed all-in interest rate based on the Company's current leverage ratio (as defined in the swap agreements), which interest rate was 2.68% at September 30, 2013. The Company has designated its pay-fixed, receive-floating interest rate swap derivatives as cash flow hedges. | ||||||||||||||||||||
The following tables present the effect of derivative instruments on the Company's consolidated statements of operations and comprehensive income, including the location and amount of unrealized (loss) gain on outstanding derivative instruments in cash flow hedging relationships, for the three and nine months ended September 30, 2013 and 2012: | ||||||||||||||||||||
Amount of Loss Recognized in OCI on Derivative Instruments | Location of Loss Reclassified from AOCI into Income | Amount of Loss Reclassified from AOCI into Income | ||||||||||||||||||
(Effective Portion) | (Effective Portion) | (Effective Portion) | ||||||||||||||||||
For the three months ended | For the three months ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Derivatives in cash flow hedging relationships: | ||||||||||||||||||||
Interest rate swaps | $ | (2,345 | ) | $ | (3,839 | ) | Interest expense | $ | 1,072 | $ | 780 | |||||||||
Amount of Gain (Loss) Recognized in OCI on Derivative Instruments | Location of Loss Reclassified from AOCI into Income | Amount of Loss Reclassified from AOCI into Income | ||||||||||||||||||
(Effective Portion) | (Effective Portion) | (Effective Portion) | ||||||||||||||||||
For the nine months ended | For the nine months ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Derivatives in cash flow hedging relationships: | ||||||||||||||||||||
Interest rate swaps | $ | 10,255 | $ | (8,534 | ) | Interest expense | $ | 3,153 | $ | 1,082 | ||||||||||
During the three and nine months ended September 30, 2013 and 2012, the Company did not have any hedge ineffectiveness or amounts that were excluded from the assessment of hedge effectiveness recorded in earnings. | ||||||||||||||||||||
As of September 30, 2013, there was $2,496 in cumulative unrealized gain, of which $2,488 was included in AOCI and $8 was attributable to noncontrolling interests. As of December 31, 2012, there was $7,759 in cumulative unrealized loss, of which $7,735 was included in AOCI and $24 was attributable to noncontrolling interests. The Company expects that approximately $4,272 will be reclassified from AOCI and noncontrolling interests and recognized as a reduction to income in the next 12 months, calculated as estimated interest expense using the interest rates on the derivative instruments as of September 30, 2013. | ||||||||||||||||||||
Mortgage Loans | ||||||||||||||||||||
The Company’s mortgage loans are secured by the respective properties. The mortgages are non-recourse to the Company except for fraud or misapplication of funds. | ||||||||||||||||||||
On June 3, 2013, the Company repaid without fee or penalty the Hotel Solamar mortgage loan in the amount of $59,789 plus accrued interest through borrowings on its senior unsecured credit facility. The loan was due to mature in December 2013. | ||||||||||||||||||||
The mortgage loans contain debt service coverage ratio tests related to the mortgaged properties. If the debt service coverage ratio for a specific property fails to exceed a threshold level specified in the mortgage, cash flows from that hotel may automatically be directed to the lender to (i) satisfy required payments, (ii) fund certain reserves required by the mortgage and (iii) fund additional cash reserves for future required payments, including final payment. Cash flows may be directed to the lender ("cash trap") until such time as the property again complies with the specified debt service coverage ratio or the mortgage is paid off. | ||||||||||||||||||||
Financial Covenants | ||||||||||||||||||||
Failure to comply with our financial covenants contained in our credit facilities, term loans and non-recourse secured mortgages could result from, among other things, changes in our results of operations, the incurrence of additional debt or changes in general economic conditions. | ||||||||||||||||||||
If the Company violates the financial covenants contained in any of its credit facilities or term loans described above, the Company may attempt to negotiate waivers of the violations or amend the terms of the applicable credit facilities or term loans with the lenders thereunder; however, the Company can make no assurance that it would be successful in any such negotiations or that, if successful in obtaining waivers or amendments, such amendments or waivers would be on terms attractive to the Company. If a default under the credit facilities or term loans were to occur, the Company would possibly have to refinance the debt through additional debt financing, private or public offerings of debt securities, or additional equity financings. If the Company is unable to refinance its debt on acceptable terms, including at maturity of the credit facilities and term loans, it may be forced to dispose of hotel properties on disadvantageous terms, potentially resulting in losses that reduce cash flow from operating activities. If, at the time of any refinancing, prevailing interest rates or other factors result in higher interest rates upon refinancing, increases in interest expense would lower the Company’s cash flow, and, consequently, cash available for distribution to its shareholders. | ||||||||||||||||||||
A cash trap associated with a mortgage loan may limit the overall liquidity for the Company as cash from the hotel securing such mortgage would not be available for the Company to use. If the Company is unable to meet mortgage payment obligations, including the payment obligation upon maturity of the mortgage borrowing, the mortgage securing the specific property could be foreclosed upon by, or the property could be otherwise transferred to, the mortgagee with a consequent loss of income and asset value to the Company. | ||||||||||||||||||||
As of September 30, 2013, the Company is in compliance with all debt covenants, current on all loan payments and not otherwise in default under the credit facilities, term loans, bonds payable or mortgage loans. |
Commitments_And_Contingencies
Commitments And Contingencies | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments And Contingencies | Commitments and Contingencies | |||
Ground, Land and Building, and Air Rights Leases | ||||
Seven of the Company’s hotels, San Diego Paradise Point Resort and Spa, Hyatt Boston Harbor (formerly Harborside Hyatt Conference Center & Hotel), Indianapolis Marriott Downtown, The Hilton San Diego Resort and Spa, Hotel Solamar, Viceroy Santa Monica and The Liberty Hotel are subject to ground leases under non-cancelable operating leases expiring from March 2026 to December 1, 2102. The ground lease at Hyatt Boston Harbor expires in March 2026, but the Company has options to extend for over 50 years to 2077. None of the remaining ground leases expire prior to 2045. The Westin Copley Place is subject to a long term air rights lease which expires in December 2077 and requires no payments through maturity. The ground lease related to the Indianapolis Marriott Downtown requires future ground rent payments of one dollar per year. The ground leases at Viceroy Santa Monica and The Liberty Hotel are subject to minimum annual rent increases, resulting in noncash straight-line rent expense of $327 and $981 for the three and nine months ended September 30, 2013, respectively, and $114 and $342 for the three and nine months ended September 30, 2012, respectively, which is included in total ground rent expense below. | ||||
Hotel Roger Williams is subject to a capital lease of land and building which expires in December 2044. The fair value of the obligation at acquisition of $4,892 is amortized and included in accounts payable and accrued expenses in the accompanying consolidated balance sheets. | ||||
Harbor Court Hotel and Hotel Triton, acquired on August 1, 2013, are subject to leases of land and building which expire in April 2048 and January 2048, respectively. The Company evaluated the terms of the lease agreements and determined the leases to be capital leases pursuant to applicable GAAP guidance. At acquisition, the fair values of the remaining rent payments of $18,424 and $27,752 for Harbor Court Hotel and Hotel Triton, respectively, were recorded as capital lease obligations. These obligations, net of amortization, are included in accounts payable and accrued expenses in the accompanying balance sheets. | ||||
Total ground rent expense for the three and nine months ended September 30, 2013 was $3,249 and $8,535, respectively. Total ground rent expense for the three and nine months ended September 30, 2012 was $2,627 and $6,613, respectively. Certain rent payments are based on the hotel’s performance. Actual payments of rent may exceed the minimum required rent due to meeting specified thresholds. | ||||
Future minimum rent payments (without reflecting future applicable Consumer Price Index increases) are as follows: | ||||
2013 | $ | 2,592 | ||
2014 | 10,131 | |||
2015 | 10,321 | |||
2016 | 10,515 | |||
2017 | 10,752 | |||
Thereafter | 533,249 | |||
$ | 577,560 | |||
Reserve Funds for Future Capital Expenditures | ||||
Certain of the Company’s agreements with its hotel managers, franchisors and lenders have provisions for the Company to provide funds, generally 4.0% to 5.0% of hotel revenues, sufficient to cover the cost of (a) certain non-routine repairs and maintenance to the hotels and (b) replacements and renewals to the hotels’ capital assets. Certain of the agreements require that the Company reserve this cash in separate accounts. As of September 30, 2013, $12,317 was available in restricted cash reserves for future capital expenditures. The Company has sufficient cash on hand and availability on its credit facilities to cover capital expenditures under agreements that do not require that the Company separately reserve cash. | ||||
Restricted Cash Reserves | ||||
At September 30, 2013, the Company held $18,198 in restricted cash reserves. Included in such amounts are (i) $12,317 of reserve funds for future capital expenditures, (ii) $4,417 deposited in mortgage escrow accounts pursuant to mortgage obligations to pre-fund a portion of certain operating expenses and debt payments and (iii) $1,464 held by insurance and management companies on the Company’s behalf to be refunded or applied to future liabilities. | ||||
Litigation | ||||
The nature of hotel operations exposes the Company and its hotels to the risk of claims and litigation in the normal course of their business. The Company is not presently subject to any material litigation nor, to the Company’s knowledge, is any litigation threatened against the Company, other than routine actions for negligence or other claims and administrative proceedings arising in the ordinary course of business, some of which are expected to be covered by liability insurance and all of which collectively are not expected to have a material adverse effect on the liquidity, results of operations, business or financial condition of the Company. |
Equity
Equity | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||
Equity | Equity | ||||||||||
Common Shares of Beneficial Interest | |||||||||||
On January 1, 2013, the Company issued 10,332 common shares of beneficial interest and authorized an additional 7,921 deferred shares to the independent members of its Board of Trustees for their earned 2012 compensation pursuant to award arrangements existing on or before January 1, 2012. These common shares of beneficial interest were issued under the 2009 Plan. | |||||||||||
On January 30, 2013, the Company issued 81,400 restricted common shares of beneficial interest to the Company’s executives and employees. The restricted shares vest over three years, starting January 1, 2014, subject to continued employment. These common shares of beneficial interest were issued under the 2009 Plan. | |||||||||||
On February 20, 2013, the Company entered into an equity distribution agreement (the "2013 Agreement") with Raymond James & Associates, Inc. (the "Manager"). Under the terms of the 2013 Agreement, the Company may issue from time to time through or to the Manager, as sales agent or principal, the Company’s common shares of beneficial interest with aggregate gross proceeds totaling up to $250,000. The 2013 Agreement replaced the Company's prior equity distribution agreement, under which $146,024 of aggregate gross proceeds remained. During the nine months ended September 30, 2013, the Company incurred offering costs of $195 related to executing and maintaining the 2013 Agreement. | |||||||||||
From May 24, 2013 through May 31, 2013, the Company sold 721,706 common shares of beneficial interest, par value $0.01 per share, under the 2013 Agreement. After deducting the Manager's discounts and commissions of $250, the Company raised net proceeds of $19,693. The net proceeds were used to pay down amounts outstanding under the Company's senior unsecured credit facility and for general corporate purposes. As of September 30, 2013, the Company had availability under the 2013 Agreement to issue and sell common shares of beneficial interest having an aggregate offering price of up to $230,057. | |||||||||||
Common Dividends | |||||||||||
The Company paid the following dividends on common shares/units during the nine months ended September 30, 2013: | |||||||||||
Dividend per | For the Quarter Ended | Record Date | Payable Date | ||||||||
Share/Unit | |||||||||||
$ | 0.2 | 31-Dec-12 | 31-Dec-12 | 15-Jan-13 | |||||||
$ | 0.2 | March 31, 2013 | March 28, 2013 | April 15, 2013 | |||||||
$ | 0.2 | June 30, 2013 | June 28, 2013 | July 15, 2013 | |||||||
Treasury Shares | |||||||||||
Treasury shares are accounted for under the cost method. During the nine months ended September 30, 2013, the Company received 2,463 common shares of beneficial interest related to employees surrendering shares to pay taxes at the time restricted shares vested and forfeiting restricted shares upon resignation. | |||||||||||
On August 29, 2011, the Company’s Board of Trustees authorized a share repurchase program (the “Repurchase Program”) to acquire up to $100,000 of the Company’s common shares of beneficial interest, with repurchased shares recorded at cost in treasury. As of September 30, 2013, the Company had availability under the Repurchase Program to acquire up to $75,498 of common shares of beneficial interest. However, the Company is not currently authorized by its Board of Trustees to repurchase or offer to repurchase any common shares. If authorized by its Board of Trustees, the Company may resume using the Repurchase Program on a future date. | |||||||||||
During the nine months ended September 30, 2013, the Company re-issued 10,332 treasury shares related to earned 2012 compensation for the Board of Trustees and 26,535 treasury shares related to the grants of restricted common shares of beneficial interest. | |||||||||||
At September 30, 2013, there were 510 common shares of beneficial interest in treasury. | |||||||||||
Preferred Shares | |||||||||||
On May 21, 2012, the Company redeemed all 3,170,000 outstanding 7 ½% Series D Cumulative Redeemable Preferred Shares ("Series D Preferred Shares") and all 3,500,000 outstanding 8% Series E Cumulative Redeemable Preferred Shares ("Series E Preferred Shares") for $79,250 and $87,500 ($25.00 per share), respectively, plus accrued distributions through May 21, 2012 of $842 and $992, respectively. The redemption values of the Series D Preferred Shares and Series E Preferred Shares exceeded their carrying values by $2,273 and $2,144, respectively, which are included in the determination of net income attributable to common shareholders for the nine months ended September 30, 2012. The $2,273 and $2,144 represent the offering costs related to the Series D Preferred Shares and Series E Preferred Shares, respectively. | |||||||||||
On March 4, 2013, the Company issued 4,000,000 6 3/8% Series I Cumulative Redeemable Preferred Shares ($0.01 par value) ("Series I Preferred Shares") at a price of $25.00 per share and received net proceeds, after deducting underwriting discounts and other offering costs, of $96,667. On March 12, 2013, the underwriters exercised their rights to cover overallotments and purchased 400,000 additional Series I Preferred Shares, resulting in additional net proceeds to the Company of $9,685. The net proceeds were used to redeem a portion of the Company's 7 ¼% Series G Cumulative Redeemable Preferred Shares ("Series G Preferred Shares") on April 5, 2013, to pay down amounts outstanding under the Company's senior unsecured credit facility, and for general corporate purposes. | |||||||||||
On April 5, 2013, the Company redeemed 4,000,000 of the 6,348,888 outstanding Series G Preferred Shares for $100,000 ($25.00 per share) plus accrued distributions through April 5, 2013 of $1,913. The redemption value of the Series G Preferred Shares exceeded their carrying value by $1,566, which is included in the determination of net income attributable to common shareholders for the nine months ended September 30, 2013. The $1,566 represents the offering costs related to the redeemed Series G Preferred Shares. | |||||||||||
The Series G Preferred Shares, the 7 ½% Series H Cumulative Redeemable Preferred Shares ("Series H Preferred Shares") and the Series I Preferred Shares (collectively, the “Preferred Shares”) rank senior to the common shares of beneficial interest and on parity with each other with respect to payment of distributions; the Company will not pay any distributions, or set aside any funds for the payment of distributions, on its common shares of beneficial interest unless it has also paid (or set aside for payment) the full cumulative distributions on the Preferred Shares for the current and all past dividend periods. The outstanding Preferred Shares do not have any maturity date, and are not subject to mandatory redemption. The difference between the carrying value and the redemption amount of the Preferred Shares are the offering costs. In addition, the Company is not required to set aside funds to redeem the Preferred Shares. The Company currently has the option to redeem the Series G Preferred Shares, in whole or from time to time in part, by payment of $25.00 per share, plus any accumulated, accrued and unpaid distributions to and including the date of redemption. The Company may not optionally redeem the Series H Preferred Shares and Series I Preferred Shares prior to January 24, 2016 and March 4, 2018, respectively, except in limited circumstances relating to the Company’s continuing qualification as a REIT or as discussed below. After those dates, the Company may, at its option, redeem the Series H Preferred Shares and Series I Preferred Shares, in whole or from time to time in part, by payment of $25.00 per share, plus any accumulated, accrued and unpaid distributions to and including the date of redemption. In addition, upon the occurrence of a change of control (as defined in the Company's charter), the result of which the Company’s common shares of beneficial interest and the common securities of the acquiring or surviving entity are not listed on the New York Stock Exchange, the NYSE MKT LLC or the NASDAQ Stock Market, or any successor exchanges, the Company may, at its option, redeem the Series H Preferred Shares and Series I Preferred Shares in whole or in part within 120 days after the change of control occurred, by paying $25.00 per share, plus any accrued and unpaid distributions to and including the date of redemption. If the Company does not exercise its right to redeem the Series H Preferred Shares and Series I Preferred Shares upon a change of control, the holders of Series H Preferred Shares and Series I Preferred Shares have the right to convert some or all of their shares into a number of the Company’s common shares of beneficial interest based on a defined formula subject to a cap of 4,680,500 common shares and 8,835,200 common shares, respectively. | |||||||||||
The following Preferred Shares were outstanding as of September 30, 2013: | |||||||||||
Security Type | Number of | ||||||||||
Shares | |||||||||||
7 ¼% Series G Preferred Shares | 2,348,888 | ||||||||||
7 ½% Series H Preferred Shares | 2,750,000 | ||||||||||
6 3/8% Series I Preferred Shares | 4,400,000 | ||||||||||
Preferred Dividends | |||||||||||
The Company paid the following dividends on preferred shares during the nine months ended September 30, 2013: | |||||||||||
Dividend per | For the | ||||||||||
Security Type | Share (1) | Quarter Ended | Record Date | Payable Date | |||||||
7 ¼% Series G | $ | 0.45 | 31-Dec-12 | 1-Jan-13 | 15-Jan-13 | ||||||
7 ½% Series H | $ | 0.47 | 31-Dec-12 | 1-Jan-13 | 15-Jan-13 | ||||||
7 ¼% Series G (redemption) | $ | 0.48 | March 31, 2013 | March 28, 2013 | April 5, 2013 | ||||||
7 ¼% Series G | $ | 0.45 | 31-Mar-13 | 28-Mar-13 | April 15, 2013 | ||||||
7 ½% Series H | $ | 0.47 | March 31, 2013 | March 28, 2013 | April 15, 2013 | ||||||
6 3/8% Series I | $ | 0.18 | March 31, 2013 | March 28, 2013 | April 15, 2013 | ||||||
7 ¼% Series G | $ | 0.45 | June 30, 2013 | July 1, 2013 | July 15, 2013 | ||||||
7 ½% Series H | $ | 0.47 | June 30, 2013 | July 1, 2013 | July 15, 2013 | ||||||
6 3/8% Series I | $ | 0.4 | June 30, 2013 | July 1, 2013 | July 15, 2013 | ||||||
(1) | Amounts are rounded to the nearest whole cent for presentation purposes. | ||||||||||
Noncontrolling Interests of Common Units in Operating Partnership | |||||||||||
As of September 30, 2013, the Operating Partnership had 296,300 common units of limited partnership interest outstanding, representing a 0.3% partnership interest held by the limited partners. As of September 30, 2013, approximately $8,450 of cash or the equivalent value in common shares, at the Company's option, would be paid to the limited partners of the Operating Partnership if the partnership were terminated. The approximate value of $8,450 is based on the Company's closing common share price of $28.52 on September 30, 2013, which is assumed to be equal to the value provided to the limited partners upon liquidation of the Operating Partnership. The outstanding common units of limited partnership interest are subject to a required hold period that ends on December 28, 2013, after which they are convertible into a like number of common shares of beneficial interest of the Company. | |||||||||||
The following schedule presents the effects of changes in the Company's ownership interest in the Operating Partnership on the Company's equity: | |||||||||||
For the nine months ended | |||||||||||
September 30, | |||||||||||
2013 | 2012 | ||||||||||
Net income attributable to common shareholders | $ | 56,329 | $ | 35,182 | |||||||
Increase (decrease) in additional paid-in capital from adjustments to noncontrolling interests of common units in Operating Partnership | 1 | (785 | ) | ||||||||
Change from net income attributable to common shareholders and adjustments to noncontrolling interests | $ | 56,330 | $ | 34,397 | |||||||
Equity_Incentive_Plan
Equity Incentive Plan | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Employee Stock Ownership Plan (ESOP), Shares in ESOP [Abstract] | ||||||||||||||||||
Equity Incentive Plan | Equity Incentive Plan | |||||||||||||||||
The common shareholders approved the 2009 Plan, which permits the Company to issue equity-based awards to executives, employees, non-employee members of the Board of Trustees and any other persons providing services to or for the Company and its subsidiaries. The 2009 Plan provides for a maximum of 1,800,000 common shares of beneficial interest to be issued in the form of share options, share appreciation rights, restricted share awards, performance shares, phantom shares and other equity-based awards. In addition, the maximum number of common shares subject to awards of any combination that may be granted under the 2009 Plan during any fiscal year to any one individual is limited to 500,000 shares. The 2009 Plan terminates on January 28, 2019. The 2009 Plan authorized, among other things: (i) the grant of share options that qualify as incentive options under the Code, (ii) the grant of share options that do not so qualify, (iii) the grant of common shares in lieu of cash for trustees’ fees, (iv) grants of common shares in lieu of cash compensation, and (v) the making of loans to acquire common shares in lieu of compensation (to the extent permitted by law and applicable provisions of the Sarbanes Oxley Act of 2002). The exercise price of share options is determined by the Compensation Committee of the Board of Trustees, but may not be less than 100% of the fair value of the common shares on the date of grant. Restricted share awards and options under the 2009 Plan vest over a period determined by the Compensation Committee of the Board of Trustees, generally a three to five year period, with certain awards vesting over periods of up to nine years. The duration of each option is also determined by the Compensation Committee, subject to applicable laws and regulations. There were no stock options outstanding as of September 30, 2013. At September 30, 2013, there were 1,164,127 common shares available for future grant under the 2009 Plan (including shares that the Company has reserved for issuance under the 2009 Plan pursuant to outstanding long-term performance-based share awards). | ||||||||||||||||||
Service Condition Nonvested Share Awards | ||||||||||||||||||
From time to time, the Company awards nonvested shares under the 2009 Plan to members of the Board of Trustees, executives, and employees. The nonvested shares vest over three to nine years based on continued service or employment. The Company measures compensation costs for the nonvested shares based upon the fair value of its common shares at the date of grant. Compensation costs are recognized on a straight-line basis over the vesting period and are included in general and administrative expense in the accompanying consolidated statements of operations and comprehensive income. | ||||||||||||||||||
A summary of the Company’s service condition nonvested shares as of September 30, 2013 is as follows: | ||||||||||||||||||
Number of | Weighted - | |||||||||||||||||
Shares | Average Grant | |||||||||||||||||
Date Fair Value | ||||||||||||||||||
Nonvested at January 1, 2013 | 252,772 | $ | 29.72 | |||||||||||||||
Granted | 83,299 | 27.19 | ||||||||||||||||
Vested | (294 | ) | 27.19 | |||||||||||||||
Forfeited | (2,360 | ) | 27.34 | |||||||||||||||
Nonvested at September 30, 2013 (1) | 333,417 | $ | 29.11 | |||||||||||||||
(1) | Amount excludes 34,318 long-term performance-based shares which were earned but nonvested due to a service condition as of September 30, 2013. | |||||||||||||||||
As of September 30, 2013 and December 31, 2012, there were $5,882 and $5,919, respectively, of total unrecognized compensation costs related to nonvested share awards. As of September 30, 2013 and December 31, 2012, these costs were expected to be recognized over a weighted–average period of 2.3 and 2.7 years, respectively. The total fair value of shares vested (calculated as number of shares multiplied by vesting date share price) during the three and nine months ended September 30, 2013 was $4 and $8, respectively, and during the three and nine months ended September 30, 2012 was $1,483 and $3,118, respectively. The compensation costs (net of forfeitures) that have been included in general and administrative expenses in the accompanying consolidated statements of operations and comprehensive income were $751 and $2,171 for the three and nine months ended September 30, 2013, respectively, and $702 and $2,094 for the three and nine months ended September 30, 2012, respectively. | ||||||||||||||||||
Long-Term Performance-Based Share Awards | ||||||||||||||||||
On January 30, 2013, the Company’s Board of Trustees granted a target of 80,559 performance-based awards of nonvested shares to executives (the "January 30, 2013 Awards"). The actual amounts of the awards with respect to 40,280 of the 80,559 shares will be determined on January 1, 2016, based on the performance measurement period of January 1, 2013 through December 31, 2015, in accordance with the terms of the agreements. The actual amounts of the awards with respect to the remaining 40,279 of the 80,559 shares will be determined on July 1, 2016, based on the performance measurement period of July 1, 2013 through June 30, 2016, in accordance with the terms of the agreements. The actual amounts of the awards will range from 0% to 200% of the target amounts, depending on the performance analysis stipulated in the agreements, and none of the performance shares are outstanding until issued in accordance with award agreements based on performance. After the actual amounts of the awards are determined (or earned) at the end of the respective performance measurement period, all of the earned shares will be issued and outstanding on those dates. The executives will receive cash payments on the earned shares equal to the value of all dividends paid on common shares from the grant date through the respective determination date. Such amounts will be paid to the awardees on or about January 1, 2016 and July 1, 2016, respectively. Thereafter, the executives will be entitled to receive dividends as declared and paid on the earned shares and to vote the shares. Fair value of the January 30, 2013 Awards was estimated on the grant date, January 30, 2013, with revaluation on June 30, 2013 resulting from the return on invested capital (see below) measurement assumption being revised from 100% to 200%, and will be amortized into expense over the respective performance measurement period. With respect to 40,280 shares, amortization commenced on January 30, 2013, the beginning of the requisite service period, and, with respect to 40,279 shares, amortization commenced on July 1, 2013, the beginning of the requisite service period. | ||||||||||||||||||
The fair values of the performance-based awards were determined by the Company using data under the Monte Carlo valuation method provided by a third-party consultant. The measurement of performance for the 2013 awards is substantially the same as the performance measurement for previously granted long-term performance-based share awards, except for "return on invested capital" discussed below. The capital market assumptions used in the valuations consisted of the following: | ||||||||||||||||||
• | Factors associated with the underlying performance of the Company’s share price and shareholder returns over the term of the performance awards including total share return volatility and risk-free interest. | |||||||||||||||||
• | Factors associated with the relative performance of the Company’s share price and shareholder returns when compared to those companies which compose the index including beta as a means to breakdown total volatility into market-related and company specific volatilities. | |||||||||||||||||
• | The valuation has been performed in a risk-neutral framework. | |||||||||||||||||
• | Return on invested capital is a performance condition award measurement. The estimated value was calculated based on the initial face value at the date of grant. The valuation will be adjusted on a periodic basis as the estimated number of awards expected to vest is revised. | |||||||||||||||||
The assumptions used were as follows for each performance measure: | ||||||||||||||||||
Volatility | Interest | Dividend | Stock | Fair Value of | Weighting | |||||||||||||
Rates | Yield | Beta | Components | of Total | ||||||||||||||
of Award | Awards | |||||||||||||||||
January 30, 2013 Awards (performance period starting January 1, 2013) | ||||||||||||||||||
Target amounts | 38.7 | % | 0.42 | % | N/A | N/A | $ | 29.38 | 33.4 | % | ||||||||
Return on invested capital | N/A | N/A | N/A | N/A | $ | 27.2 | 33.3 | % | ||||||||||
Peer companies | 38.7 | % | 0.42 | % | N/A | 0.864 | $ | 30.51 | 33.3 | % | ||||||||
January 30, 2013 Awards (performance period starting July 1, 2013) | ||||||||||||||||||
Target amounts | 38.7 | % | 0.42 | % | N/A | N/A | $ | 27.7 | 33.4 | % | ||||||||
Return on invested capital | N/A | N/A | N/A | N/A | $ | 27.2 | 33.3 | % | ||||||||||
Peer companies | 38.7 | % | 0.42 | % | N/A | 0.864 | $ | 31.34 | 33.3 | % | ||||||||
A summary of the Company’s long-term performance-based share awards as of September 30, 2013 is as follows: | ||||||||||||||||||
Number of | Weighted- | |||||||||||||||||
Shares | Average Grant | |||||||||||||||||
Date Fair Value | ||||||||||||||||||
Nonvested at January 1, 2013 | 208,986 | $ | 34.61 | |||||||||||||||
Granted | 80,559 | 28.89 | ||||||||||||||||
Vested | 0 | 0 | ||||||||||||||||
Forfeited | 0 | 0 | ||||||||||||||||
Nonvested at September 30, 2013 (1) | 289,545 | $ | 33.02 | |||||||||||||||
(1) | Amount excludes 50,000 shares that have been committed for future performance share grants. Fair value will be estimated at the beginning of the performance measurement period on July 1, 2014. | |||||||||||||||||
As of September 30, 2013 and December 31, 2012, there were $5,658 and $4,883, respectively, of total unrecognized compensation costs related to long-term performance-based share awards. As of September 30, 2013 and December 31, 2012, these costs were expected to be recognized over a weighted–average period of 2.3 and 2.6 years, respectively. As of September 30, 2013 and December 31, 2012, there were 153,943 long-term performance-based share awards that had vested. Additionally, there were 34,318 long-term performance-based awards earned but nonvested due to a service condition as of September 30, 2013 and December 31, 2012. The compensation costs (net of forfeitures) related to long-term performance-based share awards that have been included in general and administrative expenses in the accompanying consolidated statements of operations and comprehensive income were $703 and $1,917 for the three and nine months ended September 30, 2013, respectively, and $501 and $1,504 for the three and nine months ended September 30, 2012, respectively. |
LHL
LHL | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Real Estate Investment Trust, Operating Support [Abstract] | ||||||||||||||||
LHL | LHL | |||||||||||||||
Substantially all of the Company’s revenues are derived from operating revenues generated by the hotels, all of which are leased by LHL. | ||||||||||||||||
Other indirect hotel operating expenses consist of the following expenses incurred by the hotels: | ||||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
General and administrative | $ | 19,913 | $ | 17,029 | $ | 56,234 | $ | 49,800 | ||||||||
Sales and marketing | 14,096 | 12,519 | 41,489 | 37,659 | ||||||||||||
Repairs and maintenance | 8,547 | 7,635 | 24,764 | 23,045 | ||||||||||||
Utilities and insurance | 7,906 | 6,837 | 21,467 | 19,501 | ||||||||||||
Management and incentive fees | 9,172 | 8,360 | 24,080 | 21,464 | ||||||||||||
Franchise fees | 2,031 | 1,737 | 5,870 | 5,077 | ||||||||||||
Other expenses | 456 | 415 | 1,141 | 1,179 | ||||||||||||
Total other indirect expenses | $ | 62,121 | $ | 54,532 | $ | 175,045 | $ | 157,725 | ||||||||
As of September 30, 2013, LHL leased all 45 hotels owned by the Company as follows: | ||||||||||||||||
Hotel Properties | Location | |||||||||||||||
1 | Hotel Amarano Burbank | Burbank, CA | ||||||||||||||
2 | L'Auberge Del Mar | Del Mar, CA | ||||||||||||||
3 | Hilton San Diego Gaslamp Quarter | San Diego, CA | ||||||||||||||
4 | Hotel Solamar | San Diego, CA | ||||||||||||||
5 | San Diego Paradise Point Resort and Spa | San Diego, CA | ||||||||||||||
6 | The Hilton San Diego Resort and Spa | San Diego, CA | ||||||||||||||
7 | Harbor Court Hotel | San Francisco, CA | ||||||||||||||
8 | Hotel Monaco San Francisco | San Francisco, CA | ||||||||||||||
9 | Hotel Triton | San Francisco, CA | ||||||||||||||
10 | Serrano Hotel | San Francisco, CA | ||||||||||||||
11 | Villa Florence | San Francisco, CA | ||||||||||||||
12 | Chaminade Resort and Conference Center | Santa Cruz, CA | ||||||||||||||
13 | Viceroy Santa Monica | Santa Monica, CA | ||||||||||||||
14 | Chamberlain West Hollywood | West Hollywood, CA | ||||||||||||||
15 | Le Montrose Suite Hotel | West Hollywood, CA | ||||||||||||||
16 | Le Parc Suite Hotel | West Hollywood, CA | ||||||||||||||
17 | The Grafton on Sunset | West Hollywood, CA | ||||||||||||||
18 | Donovan House | Washington, D.C. | ||||||||||||||
19 | Hotel George | Washington, D.C. | ||||||||||||||
20 | Hotel Helix | Washington, D.C. | ||||||||||||||
21 | Hotel Madera | Washington, D.C. | ||||||||||||||
22 | Hotel Palomar, Washington, DC | Washington, D.C. | ||||||||||||||
23 | Hotel Rouge | Washington, D.C. | ||||||||||||||
24 | Sofitel Washington, DC Lafayette Square | Washington, D.C. | ||||||||||||||
25 | The Liaison Capitol Hill | Washington, D.C. | ||||||||||||||
26 | Topaz Hotel | Washington, D.C. | ||||||||||||||
27 | Southernmost Hotel Collection | Key West, FL | ||||||||||||||
28 | Hotel Sax Chicago | Chicago, IL | ||||||||||||||
29 | Westin Michigan Avenue | Chicago, IL | ||||||||||||||
30 | Indianapolis Marriott Downtown | Indianapolis, IN | ||||||||||||||
31 | Hyatt Boston Harbor (formerly Harborside Hyatt Conference Center & Hotel) | Boston, MA | ||||||||||||||
32 | Onyx Hotel | Boston, MA | ||||||||||||||
33 | The Liberty Hotel | Boston, MA | ||||||||||||||
34 | Westin Copley Place | Boston, MA | ||||||||||||||
35 | Gild Hall | New York, NY | ||||||||||||||
36 | Hotel Roger Williams | New York, NY | ||||||||||||||
37 | Park Central Hotel | New York, NY | ||||||||||||||
38 | WestHouse Hotel New York | New York, NY | ||||||||||||||
39 | Embassy Suites Philadelphia - Center City | Philadelphia, PA | ||||||||||||||
40 | Westin Philadelphia | Philadelphia, PA | ||||||||||||||
41 | Hotel Viking | Newport, RI | ||||||||||||||
42 | Hilton Alexandria Old Town | Alexandria,VA | ||||||||||||||
43 | Lansdowne Resort | Lansdowne,VA | ||||||||||||||
44 | Alexis Hotel | Seattle, WA | ||||||||||||||
45 | Hotel Deca | Seattle, WA |
Income_Taxes
Income Taxes | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Income Tax Expense (Benefit) [Abstract] | ||||||||||||||||
Income Taxes | Income Taxes | |||||||||||||||
Income tax expense was comprised of the following for the three and nine months ended September 30, 2013 and 2012: | ||||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
LHL’s income tax expense | $ | 2,567 | $ | 4,669 | $ | 1,922 | $ | 6,936 | ||||||||
Operating Partnership's income tax (benefit) expense | (3 | ) | 274 | 559 | (16 | ) | ||||||||||
Total income tax expense | $ | 2,564 | $ | 4,943 | $ | 2,481 | $ | 6,920 | ||||||||
The Company has estimated LHL’s income tax expense for the nine months ended September 30, 2013 by applying an estimated combined federal and state tax rate of 37.7% to LHL's net income of $5,660. From time to time, the Company may be subject to federal, state or local tax audits in the normal course of business. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value Measurements | Fair Value Measurements | |||||||||||||||
In evaluating fair value, GAAP outlines a valuation framework and creates a fair value hierarchy that distinguishes between market assumptions based on market data (observable inputs) and a reporting entity’s own assumptions about market data (unobservable inputs). The hierarchy ranks the quality and reliability of inputs used to determine fair value, which are then classified and disclosed in one of the three categories. The three levels are as follows: | ||||||||||||||||
Level 1—Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date. | ||||||||||||||||
Level 2—Observable inputs, other than quoted prices included in level 1, such as interest rates, yield curves, quoted prices in active markets for similar assets and liabilities, and quoted prices for identical or similar assets or liabilities in markets that are not active. | ||||||||||||||||
Level 3—Unobservable inputs that are supported by limited market activity. This includes certain pricing models, discounted cash flow methodologies and similar techniques when observable inputs are not available. | ||||||||||||||||
The Company estimates the fair value of its financial instruments using available market information and valuation methodologies the Company believes to be appropriate for these purposes. Considerable judgment and subjectivity are involved in developing these estimates and, accordingly, such estimates are not necessarily indicative of amounts that would be realized upon disposition. | ||||||||||||||||
Recurring Measurements | ||||||||||||||||
For assets and liabilities measured at fair value on a recurring basis, quantitative disclosure of their fair value is as follows: | ||||||||||||||||
Fair Value Measurements at | ||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||
Using Significant Other Observable | ||||||||||||||||
Inputs (Level 2) | ||||||||||||||||
Description | Consolidated Balance Sheet Location | |||||||||||||||
Derivative interest rate instruments | Prepaid expenses and other assets | $ | 2,496 | $ | 0 | |||||||||||
Derivative interest rate instruments | Accounts payable and accrued expenses | $ | 0 | $ | 7,759 | |||||||||||
The fair value of each derivative instrument is based on a discounted cash flow analysis of the expected cash flows under each arrangement. This analysis reflects the contractual terms of the derivative instrument, including the period to maturity, and utilizes observable market-based inputs, including interest rate curves and implied volatilities, which is classified within level 2 of the fair value hierarchy. The Company also incorporates credit value adjustments to appropriately reflect each parties' nonperformance risk in the fair value measurement, which utilizes level 3 inputs such as estimates of current credit spreads. However, the Company has assessed that the credit valuation adjustments are not significant to the overall valuation of the derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified within level 2 of the fair value hierarchy. | ||||||||||||||||
Financial Instruments Not Measured at Fair Value | ||||||||||||||||
The following table represents the fair value, derived using level 2 inputs, of financial instruments presented at carrying value in the Company's consolidated financial statements as of September 30, 2013 and December 31, 2012: | ||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | |||||||||||||
Note receivable | $ | 70,345 | $ | 70,345 | $ | 68,490 | $ | 68,490 | ||||||||
Borrowings under credit facilities | $ | 461,000 | $ | 462,660 | $ | 153,000 | $ | 153,719 | ||||||||
Term loans | $ | 477,500 | $ | 476,070 | $ | 477,500 | $ | 475,752 | ||||||||
Bonds payable | $ | 42,500 | $ | 42,500 | $ | 42,500 | $ | 42,500 | ||||||||
Mortgage loans | $ | 515,653 | $ | 527,722 | $ | 579,220 | $ | 607,109 | ||||||||
The Company estimates the fair value of its borrowings under credit facilities, term loans, bonds payable and mortgage loans using a weighted average effective interest rate of 2.9% as of September 30, 2013 and December 31, 2012. The assumptions reflect the terms currently available on similar borrowings to borrowers with credit profiles similar to the Company's. The Company estimates that the fair value of its note receivable approximates its carrying value due to the relatively short period until maturity. | ||||||||||||||||
At September 30, 2013 and December 31, 2012, the carrying amounts of certain of the Company's financial instruments, including cash and cash equivalents, restricted cash, accounts receivable and accounts payable and accrued expenses were representative of their fair values due to the short-term nature of these instruments and the recent acquisition of these items. |
Earnings_Per_Common_Share
Earnings Per Common Share | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||
Earnings Per Common Share | Earnings Per Common Share | |||||||||||||||
The limited partners' outstanding common units in the Operating Partnership (which may be converted to common shares of beneficial interest) have been excluded from the diluted earnings per share calculation as there would be no effect on the amounts since the limited partners' share of income or loss would also be added back to net income or loss. Any anti-dilutive shares have been excluded from the diluted earnings per share calculation. Unvested share-based awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method. Accordingly, distributed and undistributed earnings attributable to unvested restricted shares (participating securities) have been excluded, as applicable, from net income or loss attributable to common shareholders used in the basic and diluted earnings per share calculations. Net income or loss figures are presented net of noncontrolling interests in the earnings per share calculations. | ||||||||||||||||
The computation of basic and diluted earnings per common share is as follows: | ||||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Numerator: | ||||||||||||||||
Net income attributable to common shareholders | $ | 28,534 | $ | 26,507 | $ | 56,329 | $ | 35,182 | ||||||||
Dividends paid on unvested restricted shares | (103 | ) | (78 | ) | (250 | ) | (213 | ) | ||||||||
Undistributed earnings attributable to unvested restricted shares | (6 | ) | (41 | ) | 0 | 0 | ||||||||||
Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares | $ | 28,425 | $ | 26,388 | $ | 56,079 | $ | 34,969 | ||||||||
Denominator: | ||||||||||||||||
Weighted average number of common shares - basic | 95,890,474 | 85,876,584 | 95,510,088 | 85,278,331 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Stock options and compensation-related shares | 191,866 | 180,373 | 171,675 | 171,212 | ||||||||||||
Weighted average number of common shares - diluted | 96,082,340 | 86,056,957 | 95,681,763 | 85,449,543 | ||||||||||||
Earnings per Common Share - Basic: | ||||||||||||||||
Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares | $ | 0.3 | $ | 0.31 | $ | 0.59 | $ | 0.41 | ||||||||
Earnings per Common Share - Diluted: | ||||||||||||||||
Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares | $ | 0.3 | $ | 0.31 | $ | 0.59 | $ | 0.41 | ||||||||
Supplemental_Information_To_St
Supplemental Information To Statements Of Cash Flows | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Supplemental Cash Flow Information [Abstract] | ||||||||
Supplemental Information To Statements Of Cash Flows | Supplemental Information to Statements of Cash Flows | |||||||
For the nine months ended | ||||||||
September 30, | ||||||||
2013 | 2012 | |||||||
Interest paid, net of capitalized interest | $ | 41,388 | $ | 36,660 | ||||
Interest capitalized | 521 | 259 | ||||||
Income taxes paid, net | 1,311 | 2,117 | ||||||
Increase in distributions payable on common shares | 7,887 | 8,063 | ||||||
Decrease in distributions payable on preferred shares | (59 | ) | (3,236 | ) | ||||
Write-off of fully depreciated furniture, fixtures and equipment | 7,888 | 0 | ||||||
Write-off of fully amortized deferred financing costs | 203 | 162 | ||||||
Increase (decrease) in accrued capital expenditures | 2,671 | (2,176 | ) | |||||
Grant of restricted shares and awards to employees and executives, net | 4,957 | 4,764 | ||||||
Issuance of common shares for Board of Trustees compensation | 277 | 494 | ||||||
In conjunction with the acquisition of properties, the Company assumed | ||||||||
assets and liabilities as follows: | ||||||||
Investment in properties (after credits at closing) | $ | (349,802 | ) | $ | (143,721 | ) | ||
Other assets | (2,509 | ) | (565 | ) | ||||
Liabilities | 50,176 | 1,342 | ||||||
Acquisition of properties | $ | (302,135 | ) | $ | (142,944 | ) |
Subsequent_Events
Subsequent Events | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Subsequent Events [Abstract] | |||||||||||
Subsequent Events | Subsequent Events | ||||||||||
The Company paid the following common and preferred dividends subsequent to September 30, 2013: | |||||||||||
Dividend per | For the Quarter | Record | Payable | ||||||||
Security Type | Share/Unit (1) | Ended | Date | Date | |||||||
Common Shares/Units | $ | 0.28 | September 30, 2013 | September 30, 2013 | October 15, 2013 | ||||||
7 ¼% Series G Preferred Shares | $ | 0.45 | September 30, 2013 | October 1, 2013 | October 15, 2013 | ||||||
7 ½% Series H Preferred Shares | $ | 0.47 | September 30, 2013 | October 1, 2013 | October 15, 2013 | ||||||
6 3/8% Series I Preferred Shares | $ | 0.4 | September 30, 2013 | October 1, 2013 | October 15, 2013 | ||||||
(1) | Amounts are rounded to the nearest whole cent for presentation purposes. |
Summary_Of_Significant_Account1
Summary Of Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | |
Basis Of Presentation | Basis of Presentation |
The consolidated financial statements include the accounts of the Company, the Operating Partnership, LHL and their subsidiaries in which they have a controlling interest, including joint ventures. All significant intercompany balances and transactions have been eliminated. | |
Use Of Estimates | Use of Estimates |
The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and the amounts of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. | |
Substantially all of the Company’s revenues and expenses are generated by the operations of the individual hotels. The Company records revenues and expenses that are estimated by the hotel operators to produce quarterly financial statements because the management contracts do not require the hotel operators to submit actual results within a time frame that permits the Company to use actual results when preparing its Quarterly Reports on Form 10-Q for filing by the deadline prescribed by the SEC. Generally, the Company records actual revenue and expense amounts for the first two months of each quarter and revenue and expense estimates for the last month of each quarter. Each quarter, the Company reviews the estimated revenue and expense amounts provided by the hotel operators for reasonableness based upon historical results for prior periods and internal Company forecasts. The Company records any differences between recorded estimated amounts and actual amounts in the following quarter; historically, these differences have not been material. The Company believes the quarterly revenues and expenses, recorded on the Company’s consolidated statements of operations and comprehensive income (loss) based on an aggregate estimate, are fairly stated. | |
Share-Based Compensation | Share-Based Compensation |
From time to time, the Company awards nonvested shares under the 2009 Equity Incentive Plan (“2009 Plan”), which has approximately five years remaining, as compensation to officers, employees and non-employee trustees (see Note 7). The shares issued to officers and employees vest over three to nine years. The Company generally recognizes compensation expense for nonvested shares on a straight-line basis over the vesting period based upon the fair market value of the shares on the date of issuance, adjusted for forfeitures. | |
Noncontrolling Interests | Noncontrolling Interests |
The Company's financial statements include entities in which the Company has a controlling financial interest. Noncontrolling interest is the portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. Such noncontrolling interests are reported on the consolidated balance sheets within equity, separately from the Company's equity. On the consolidated statements of operations and comprehensive income (loss), revenues, expenses and net income or loss from less-than-wholly-owned subsidiaries are reported at the consolidated amounts, including both the amounts attributable to the Company and noncontrolling interests. Income or loss is allocated to noncontrolling interests based on their weighted average ownership percentage for the applicable period. Consolidated statements of equity include beginning balances, activity for the period and ending balances for shareholders’ equity, noncontrolling interests and total equity. | |
However, the Company’s securities that are redeemable for cash or other assets at the option of the holder, not solely within the control of the issuer, must be classified outside of permanent equity. The Company makes this determination based on terms in applicable agreements, specifically in relation to redemption provisions. Additionally, with respect to noncontrolling interests for which the Company has a choice to settle the contract by delivery of its own shares, the Company evaluates whether the Company controls the actions or events necessary to issue the maximum number of shares that could be required to be delivered under share settlement of the contract. | |
As of September 30, 2013, the consolidated results of the Company include the following ownership interests held by owners other than the Company: (i) the common units in the Operating Partnership held by third parties, (ii) the outside preferred ownership interests in a subsidiary and (iii) the outside ownership interest in a joint venture. | |
Notes Receivable | Notes Receivable |
Notes receivable are carried at cost, net of any premiums or discounts which are recognized as an adjustment of yield over the remaining life of the note using the effective interest method. Interest income is recorded on the accrual basis consistent with the terms of the notes receivable. A note is deemed to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all principal and interest contractually due. Interest previously accrued but not collected becomes part of the Company's recorded investment in the note receivable for purposes of assessing impairment. The Company applies interest payments received on non-accrual notes receivable first to accrued interest and then as interest income. Notes receivable return to accrual status when contractually current and the collection of future payments is reasonably assured. |
Investment_in_Hotel_Properties1
Investment in Hotel Properties (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Investments [Abstract] | ||||||||||||||||||
Schedule Of Investment In Hotel Properties [Table Text Block] | Investment in hotel properties as of September 30, 2013 and December 31, 2012 consists of the following: | |||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||
Land | $ | 602,696 | $ | 480,705 | ||||||||||||||
Buildings and improvements | 3,181,324 | 2,932,532 | ||||||||||||||||
Furniture, fixtures and equipment | 538,013 | 472,052 | ||||||||||||||||
Investment in hotel properties, gross | 4,322,033 | 3,885,289 | ||||||||||||||||
Accumulated depreciation | (931,178 | ) | (832,245 | ) | ||||||||||||||
Investment in hotel properties, net | $ | 3,390,855 | $ | 3,053,044 | ||||||||||||||
Summary Of Acquisitions | Adjustments have been made to the unaudited pro forma financial information for the following acquisitions: | |||||||||||||||||
Property | Acquisition Date | |||||||||||||||||
Hotel Palomar, Washington, DC | March 8, 2012 | |||||||||||||||||
L'Auberge Del Mar | December 6, 2012 | |||||||||||||||||
The Liberty Hotel | December 28, 2012 | |||||||||||||||||
Harbor Court Hotel | August 1, 2013 | |||||||||||||||||
Hotel Triton | August 1, 2013 | |||||||||||||||||
Serrano Hotel | August 21, 2013 | |||||||||||||||||
Southernmost Hotel Collection | August 27, 2013 | |||||||||||||||||
The following is a summary of the acquisitions: | ||||||||||||||||||
Acquisition | ||||||||||||||||||
Transaction Costs | ||||||||||||||||||
Hotel Name | Acquisition Date | Number of | Location | Purchase | Manager | For the three and nine months ended September 30, 2013 | ||||||||||||
Rooms | Price | |||||||||||||||||
Harbor Court Hotel | 1-Aug-13 | 131 | San Francisco, CA | $ | 36,875 | Kimpton Hotel & Restaurant Group, L.L.C. | $ | 578 | ||||||||||
Hotel Triton | 1-Aug-13 | 140 | San Francisco, CA | 10,900 | Kimpton Hotel & Restaurant Group, L.L.C. | 115 | ||||||||||||
Serrano Hotel | 21-Aug-13 | 236 | San Francisco, CA | 71,500 | Kimpton Hotel & Restaurant Group, L.L.C. | 1,010 | ||||||||||||
Southernmost Hotel Collection | August 27, 2013 | 260 | Key West, FL | 184,500 | Highgate Hotels | 984 | ||||||||||||
Total | $ | 303,775 | $ | 2,687 | ||||||||||||||
Condensed Pro Forma Financial Information | The unaudited condensed pro forma financial information for the three and nine months ended September 30, 2013 and 2012 is as follows: | |||||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||
Total revenues | $ | 278,024 | $ | 269,571 | $ | 769,879 | $ | 750,963 | ||||||||||
Net income | $ | 32,821 | $ | 33,257 | $ | 74,771 | $ | 63,416 | ||||||||||
Net income attributable to common shareholders | $ | 28,607 | $ | 28,975 | $ | 59,676 | $ | 41,208 | ||||||||||
Earnings per common share - basic | $ | 0.3 | $ | 0.3 | $ | 0.62 | $ | 0.43 | ||||||||||
Earnings per common share - diluted | $ | 0.3 | $ | 0.3 | $ | 0.62 | $ | 0.43 | ||||||||||
Weighted average number of common shares outstanding: | ||||||||||||||||||
Basic | 95,890,474 | 95,799,571 | 95,889,692 | 95,774,870 | ||||||||||||||
Diluted | 96,082,340 | 95,979,943 | 96,061,368 | 95,946,082 | ||||||||||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Long-term Debt, Other Disclosures [Abstract] | ||||||||||||||||||||
Components Of Long-Term Debt | Debt as of September 30, 2013 and December 31, 2012 consisted of the following: | |||||||||||||||||||
Balance Outstanding as of | ||||||||||||||||||||
Debt | Interest | Maturity | September 30, | December 31, | ||||||||||||||||
Rate | Date | 2013 | 2012 | |||||||||||||||||
Credit facilities | ||||||||||||||||||||
Senior unsecured credit facility | Floating (a) | January 2016 (a) | $ | 461,000 | $ | 153,000 | ||||||||||||||
LHL unsecured credit facility | Floating (b) | January 2016 (b) | 0 | 0 | ||||||||||||||||
Total borrowings under credit facilities | 461,000 | 153,000 | ||||||||||||||||||
Term loans | ||||||||||||||||||||
First Term Loan | Floating (c) | May-19 | 177,500 | 177,500 | ||||||||||||||||
Second Term Loan | Floating (c) | Aug-17 | 300,000 | 300,000 | ||||||||||||||||
Total term loans | 477,500 | 477,500 | ||||||||||||||||||
Massport Bonds | ||||||||||||||||||||
Hyatt Boston Harbor (taxable) | Floating (d) | Mar-18 | 5,400 | 5,400 | ||||||||||||||||
Hyatt Boston Harbor (tax exempt) | Floating (d) | Mar-18 | 37,100 | 37,100 | ||||||||||||||||
Total bonds payable | 42,500 | 42,500 | ||||||||||||||||||
Mortgage loans | ||||||||||||||||||||
Hotel Solamar | 5.49% | December 2013 (e) | 0 | 60,134 | ||||||||||||||||
Hotel Deca | 6.28% | August 2014 (f) | 8,886 | 9,111 | ||||||||||||||||
Westin Copley Place | 5.28% | Sep-15 | 210,000 | 210,000 | ||||||||||||||||
Westin Michigan Avenue | 5.75% | Apr-16 | 135,795 | 137,172 | ||||||||||||||||
Indianapolis Marriott Downtown | 5.99% | Jul-16 | 99,203 | 100,142 | ||||||||||||||||
Hotel Roger Williams | 6.31% | Aug-16 | 61,707 | 62,543 | ||||||||||||||||
Mortgage loans at stated value | 515,591 | 579,102 | ||||||||||||||||||
Unamortized loan premium (g) | 62 | 118 | ||||||||||||||||||
Total mortgage loans | 515,653 | 579,220 | ||||||||||||||||||
Total debt | $ | 1,496,653 | $ | 1,252,220 | ||||||||||||||||
(a) | Borrowings bear interest at floating rates equal to, at the Company’s option, either (i) LIBOR plus an applicable margin, or (ii) an Adjusted Base Rate plus an applicable margin. As of September 30, 2013, the rate, including the applicable margin, for the Company’s outstanding LIBOR borrowings of $461,000 was 2.19%. As of December 31, 2012, the rate, including the applicable margin, for the Company's outstanding LIBOR borrowing of $153,000 was 2.22%. The Company has the option, pursuant to certain terms and conditions, to extend the maturity date to January 2017. | |||||||||||||||||||
(b) | Borrowings bear interest at floating rates equal to, at LHL’s option, either (i) LIBOR plus an applicable margin, or (ii) an Adjusted Base Rate plus an applicable margin. There were no borrowings outstanding at September 30, 2013 or December 31, 2012. LHL has the option, subject to certain terms and conditions, to extend the maturity date to January 2017. | |||||||||||||||||||
(c) | Term loans bear interest at floating rates equal to LIBOR plus an applicable margin. The Company entered into separate interest rate swap agreements for the full seven-year term of the First Term Loan (as defined below) and the full five-year term, including a one-year extension subject to certain conditions, of the Second Term Loan (as defined below), resulting in fixed all-in interest rates of 3.87% and 2.68%, respectively, at the Company's current leverage ratio (as defined in the swap agreements). | |||||||||||||||||||
(d) | The Massport Bonds are secured by letters of credit issued by the Royal Bank of Scotland that expire in February 2014, pursuant to an amendment to the agreement governing the letters of credit. The Royal Bank of Scotland letters of credit also have three one-year extension options and are secured by the Hyatt Boston Harbor (formerly the Harborside Hyatt Conference Center & Hotel). The Company has given notification of its intention to exercise the first extension option on the letters of credit. The bonds bear interest based on weekly floating rates. The interest rates as of September 30, 2013 were 0.70% and 0.11% for the $5,400 and $37,100 bonds, respectively. The interest rates as of December 31, 2012 were 0.65% and 0.17% for the $5,400 and $37,100 bonds, respectively. The Company also incurs an annual letter of credit fee of a variable rate based on an applicable margin as defined in the Company's senior unsecured credit agreement. | |||||||||||||||||||
(e) | The Company repaid the mortgage loan on June 3, 2013 through borrowings on its senior unsecured credit facility. | |||||||||||||||||||
(f) | The Company intends to repay the mortgage loan through borrowings on its credit facilities upon maturity. | |||||||||||||||||||
(g) | Mortgage debt includes an unamortized loan premium on the mortgage loan on Hotel Deca of $62 as of September 30, 2013 and $118 as of December 31, 2012. | |||||||||||||||||||
Summary Interest Expense And Weighted Average Interest Rates For Borrowings | A summary of the Company’s interest expense and weighted average interest rates for variable rate debt for the three and nine months ended September 30, 2013 and 2012 is as follows: | |||||||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Interest Expense: | ||||||||||||||||||||
Interest incurred | $ | 14,271 | $ | 13,611 | $ | 41,342 | $ | 37,296 | ||||||||||||
Amortization of deferred financing costs | 556 | 526 | 1,696 | 1,354 | ||||||||||||||||
Capitalized interest | (90 | ) | (27 | ) | (521 | ) | (259 | ) | ||||||||||||
Interest expense | $ | 14,737 | $ | 14,110 | $ | 42,517 | $ | 38,391 | ||||||||||||
Weighted Average Interest Rates for Variable Rate Debt: | ||||||||||||||||||||
Senior unsecured credit facility | 2.1 | % | 2.3 | % | 2.1 | % | 2.2 | % | ||||||||||||
LHL unsecured credit facility | 1.2 | % | 2.2 | % | 2 | % | 2.1 | % | ||||||||||||
Massport Bonds | 0.2 | % | 0.2 | % | 0.2 | % | 0.3 | % | ||||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following tables present the effect of derivative instruments on the Company's consolidated statements of operations and comprehensive income, including the location and amount of unrealized (loss) gain on outstanding derivative instruments in cash flow hedging relationships, for the three and nine months ended September 30, 2013 and 2012: | |||||||||||||||||||
Amount of Loss Recognized in OCI on Derivative Instruments | Location of Loss Reclassified from AOCI into Income | Amount of Loss Reclassified from AOCI into Income | ||||||||||||||||||
(Effective Portion) | (Effective Portion) | (Effective Portion) | ||||||||||||||||||
For the three months ended | For the three months ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Derivatives in cash flow hedging relationships: | ||||||||||||||||||||
Interest rate swaps | $ | (2,345 | ) | $ | (3,839 | ) | Interest expense | $ | 1,072 | $ | 780 | |||||||||
Amount of Gain (Loss) Recognized in OCI on Derivative Instruments | Location of Loss Reclassified from AOCI into Income | Amount of Loss Reclassified from AOCI into Income | ||||||||||||||||||
(Effective Portion) | (Effective Portion) | (Effective Portion) | ||||||||||||||||||
For the nine months ended | For the nine months ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Derivatives in cash flow hedging relationships: | ||||||||||||||||||||
Interest rate swaps | $ | 10,255 | $ | (8,534 | ) | Interest expense | $ | 3,153 | $ | 1,082 | ||||||||||
Commitments_And_Contingencies_
Commitments And Contingencies (Tables) | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Future Minimum Rent Payments | Future minimum rent payments (without reflecting future applicable Consumer Price Index increases) are as follows: | |||
2013 | $ | 2,592 | ||
2014 | 10,131 | |||
2015 | 10,321 | |||
2016 | 10,515 | |||
2017 | 10,752 | |||
Thereafter | 533,249 | |||
$ | 577,560 | |||
Equity_Tables
Equity (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||
Schedule of Common Stock Dividends Paid | The Company paid the following dividends on common shares/units during the nine months ended September 30, 2013: | ||||||||||
Dividend per | For the Quarter Ended | Record Date | Payable Date | ||||||||
Share/Unit | |||||||||||
$ | 0.2 | 31-Dec-12 | 31-Dec-12 | 15-Jan-13 | |||||||
$ | 0.2 | March 31, 2013 | March 28, 2013 | April 15, 2013 | |||||||
$ | 0.2 | June 30, 2013 | June 28, 2013 | July 15, 2013 | |||||||
Preferred Shares Outstanding | The following Preferred Shares were outstanding as of September 30, 2013: | ||||||||||
Security Type | Number of | ||||||||||
Shares | |||||||||||
7 ¼% Series G Preferred Shares | 2,348,888 | ||||||||||
7 ½% Series H Preferred Shares | 2,750,000 | ||||||||||
6 3/8% Series I Preferred Shares | 4,400,000 | ||||||||||
Schedule of Preferred Dividends Paid | The Company paid the following dividends on preferred shares during the nine months ended September 30, 2013: | ||||||||||
Dividend per | For the | ||||||||||
Security Type | Share (1) | Quarter Ended | Record Date | Payable Date | |||||||
7 ¼% Series G | $ | 0.45 | 31-Dec-12 | 1-Jan-13 | 15-Jan-13 | ||||||
7 ½% Series H | $ | 0.47 | 31-Dec-12 | 1-Jan-13 | 15-Jan-13 | ||||||
7 ¼% Series G (redemption) | $ | 0.48 | March 31, 2013 | March 28, 2013 | April 5, 2013 | ||||||
7 ¼% Series G | $ | 0.45 | 31-Mar-13 | 28-Mar-13 | April 15, 2013 | ||||||
7 ½% Series H | $ | 0.47 | March 31, 2013 | March 28, 2013 | April 15, 2013 | ||||||
6 3/8% Series I | $ | 0.18 | March 31, 2013 | March 28, 2013 | April 15, 2013 | ||||||
7 ¼% Series G | $ | 0.45 | June 30, 2013 | July 1, 2013 | July 15, 2013 | ||||||
7 ½% Series H | $ | 0.47 | June 30, 2013 | July 1, 2013 | July 15, 2013 | ||||||
6 3/8% Series I | $ | 0.4 | June 30, 2013 | July 1, 2013 | July 15, 2013 | ||||||
(1) | Amounts are rounded to the nearest whole cent for presentation purposes. | ||||||||||
Schedule Of Effects Of Changes In The Company's Ownership Interest In The Operating Partnership On The Company's Equity | The following schedule presents the effects of changes in the Company's ownership interest in the Operating Partnership on the Company's equity: | ||||||||||
For the nine months ended | |||||||||||
September 30, | |||||||||||
2013 | 2012 | ||||||||||
Net income attributable to common shareholders | $ | 56,329 | $ | 35,182 | |||||||
Increase (decrease) in additional paid-in capital from adjustments to noncontrolling interests of common units in Operating Partnership | 1 | (785 | ) | ||||||||
Change from net income attributable to common shareholders and adjustments to noncontrolling interests | $ | 56,330 | $ | 34,397 | |||||||
Equity_Incentive_Plan_Tables
Equity Incentive Plan (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Employee Stock Ownership Plan (ESOP), Shares in ESOP [Abstract] | ||||||||||||||||||
Summary Of The Company's Service Condition Nonvested Shares | A summary of the Company’s service condition nonvested shares as of September 30, 2013 is as follows: | |||||||||||||||||
Number of | Weighted - | |||||||||||||||||
Shares | Average Grant | |||||||||||||||||
Date Fair Value | ||||||||||||||||||
Nonvested at January 1, 2013 | 252,772 | $ | 29.72 | |||||||||||||||
Granted | 83,299 | 27.19 | ||||||||||||||||
Vested | (294 | ) | 27.19 | |||||||||||||||
Forfeited | (2,360 | ) | 27.34 | |||||||||||||||
Nonvested at September 30, 2013 (1) | 333,417 | $ | 29.11 | |||||||||||||||
(1) | Amount excludes 34,318 long-term performance-based shares which were earned but nonvested due to a service condition as of September 30, 2013. | |||||||||||||||||
Assumptions Of Performance Measures For Valuation | The assumptions used were as follows for each performance measure: | |||||||||||||||||
Volatility | Interest | Dividend | Stock | Fair Value of | Weighting | |||||||||||||
Rates | Yield | Beta | Components | of Total | ||||||||||||||
of Award | Awards | |||||||||||||||||
January 30, 2013 Awards (performance period starting January 1, 2013) | ||||||||||||||||||
Target amounts | 38.7 | % | 0.42 | % | N/A | N/A | $ | 29.38 | 33.4 | % | ||||||||
Return on invested capital | N/A | N/A | N/A | N/A | $ | 27.2 | 33.3 | % | ||||||||||
Peer companies | 38.7 | % | 0.42 | % | N/A | 0.864 | $ | 30.51 | 33.3 | % | ||||||||
January 30, 2013 Awards (performance period starting July 1, 2013) | ||||||||||||||||||
Target amounts | 38.7 | % | 0.42 | % | N/A | N/A | $ | 27.7 | 33.4 | % | ||||||||
Return on invested capital | N/A | N/A | N/A | N/A | $ | 27.2 | 33.3 | % | ||||||||||
Peer companies | 38.7 | % | 0.42 | % | N/A | 0.864 | $ | 31.34 | 33.3 | % | ||||||||
Summary Of The Company's Long-Term Performance-Based Share Awards | A summary of the Company’s long-term performance-based share awards as of September 30, 2013 is as follows: | |||||||||||||||||
Number of | Weighted- | |||||||||||||||||
Shares | Average Grant | |||||||||||||||||
Date Fair Value | ||||||||||||||||||
Nonvested at January 1, 2013 | 208,986 | $ | 34.61 | |||||||||||||||
Granted | 80,559 | 28.89 | ||||||||||||||||
Vested | 0 | 0 | ||||||||||||||||
Forfeited | 0 | 0 | ||||||||||||||||
Nonvested at September 30, 2013 (1) | 289,545 | $ | 33.02 | |||||||||||||||
(1) | Amount excludes 50,000 shares that have been committed for future performance share grants. Fair value will be estimated at the beginning of the performance measurement period on July 1, 2014. |
LHL_Tables
LHL (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Real Estate Investment Trust, Operating Support [Abstract] | ||||||||||||||||
Summary Of Other Indirect Hotel Operating Expenses | Other indirect hotel operating expenses consist of the following expenses incurred by the hotels: | |||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
General and administrative | $ | 19,913 | $ | 17,029 | $ | 56,234 | $ | 49,800 | ||||||||
Sales and marketing | 14,096 | 12,519 | 41,489 | 37,659 | ||||||||||||
Repairs and maintenance | 8,547 | 7,635 | 24,764 | 23,045 | ||||||||||||
Utilities and insurance | 7,906 | 6,837 | 21,467 | 19,501 | ||||||||||||
Management and incentive fees | 9,172 | 8,360 | 24,080 | 21,464 | ||||||||||||
Franchise fees | 2,031 | 1,737 | 5,870 | 5,077 | ||||||||||||
Other expenses | 456 | 415 | 1,141 | 1,179 | ||||||||||||
Total other indirect expenses | $ | 62,121 | $ | 54,532 | $ | 175,045 | $ | 157,725 | ||||||||
Schedule of Hotels Owned | As of September 30, 2013, LHL leased all 45 hotels owned by the Company as follows: | |||||||||||||||
Hotel Properties | Location | |||||||||||||||
1 | Hotel Amarano Burbank | Burbank, CA | ||||||||||||||
2 | L'Auberge Del Mar | Del Mar, CA | ||||||||||||||
3 | Hilton San Diego Gaslamp Quarter | San Diego, CA | ||||||||||||||
4 | Hotel Solamar | San Diego, CA | ||||||||||||||
5 | San Diego Paradise Point Resort and Spa | San Diego, CA | ||||||||||||||
6 | The Hilton San Diego Resort and Spa | San Diego, CA | ||||||||||||||
7 | Harbor Court Hotel | San Francisco, CA | ||||||||||||||
8 | Hotel Monaco San Francisco | San Francisco, CA | ||||||||||||||
9 | Hotel Triton | San Francisco, CA | ||||||||||||||
10 | Serrano Hotel | San Francisco, CA | ||||||||||||||
11 | Villa Florence | San Francisco, CA | ||||||||||||||
12 | Chaminade Resort and Conference Center | Santa Cruz, CA | ||||||||||||||
13 | Viceroy Santa Monica | Santa Monica, CA | ||||||||||||||
14 | Chamberlain West Hollywood | West Hollywood, CA | ||||||||||||||
15 | Le Montrose Suite Hotel | West Hollywood, CA | ||||||||||||||
16 | Le Parc Suite Hotel | West Hollywood, CA | ||||||||||||||
17 | The Grafton on Sunset | West Hollywood, CA | ||||||||||||||
18 | Donovan House | Washington, D.C. | ||||||||||||||
19 | Hotel George | Washington, D.C. | ||||||||||||||
20 | Hotel Helix | Washington, D.C. | ||||||||||||||
21 | Hotel Madera | Washington, D.C. | ||||||||||||||
22 | Hotel Palomar, Washington, DC | Washington, D.C. | ||||||||||||||
23 | Hotel Rouge | Washington, D.C. | ||||||||||||||
24 | Sofitel Washington, DC Lafayette Square | Washington, D.C. | ||||||||||||||
25 | The Liaison Capitol Hill | Washington, D.C. | ||||||||||||||
26 | Topaz Hotel | Washington, D.C. | ||||||||||||||
27 | Southernmost Hotel Collection | Key West, FL | ||||||||||||||
28 | Hotel Sax Chicago | Chicago, IL | ||||||||||||||
29 | Westin Michigan Avenue | Chicago, IL | ||||||||||||||
30 | Indianapolis Marriott Downtown | Indianapolis, IN | ||||||||||||||
31 | Hyatt Boston Harbor (formerly Harborside Hyatt Conference Center & Hotel) | Boston, MA | ||||||||||||||
32 | Onyx Hotel | Boston, MA | ||||||||||||||
33 | The Liberty Hotel | Boston, MA | ||||||||||||||
34 | Westin Copley Place | Boston, MA | ||||||||||||||
35 | Gild Hall | New York, NY | ||||||||||||||
36 | Hotel Roger Williams | New York, NY | ||||||||||||||
37 | Park Central Hotel | New York, NY | ||||||||||||||
38 | WestHouse Hotel New York | New York, NY | ||||||||||||||
39 | Embassy Suites Philadelphia - Center City | Philadelphia, PA | ||||||||||||||
40 | Westin Philadelphia | Philadelphia, PA | ||||||||||||||
41 | Hotel Viking | Newport, RI | ||||||||||||||
42 | Hilton Alexandria Old Town | Alexandria,VA | ||||||||||||||
43 | Lansdowne Resort | Lansdowne,VA | ||||||||||||||
44 | Alexis Hotel | Seattle, WA | ||||||||||||||
45 | Hotel Deca | Seattle, WA |
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Income Tax Expense (Benefit) [Abstract] | ||||||||||||||||
Summary Of Income Tax Expense | Income tax expense was comprised of the following for the three and nine months ended September 30, 2013 and 2012: | |||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
LHL’s income tax expense | $ | 2,567 | $ | 4,669 | $ | 1,922 | $ | 6,936 | ||||||||
Operating Partnership's income tax (benefit) expense | (3 | ) | 274 | 559 | (16 | ) | ||||||||||
Total income tax expense | $ | 2,564 | $ | 4,943 | $ | 2,481 | $ | 6,920 | ||||||||
Fair_Value_Measurements_Fair_V
Fair Value Measurements Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | For assets and liabilities measured at fair value on a recurring basis, quantitative disclosure of their fair value is as follows: | |||||||||||||||
Fair Value Measurements at | ||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||
Using Significant Other Observable | ||||||||||||||||
Inputs (Level 2) | ||||||||||||||||
Description | Consolidated Balance Sheet Location | |||||||||||||||
Derivative interest rate instruments | Prepaid expenses and other assets | $ | 2,496 | $ | 0 | |||||||||||
Derivative interest rate instruments | Accounts payable and accrued expenses | $ | 0 | $ | 7,759 | |||||||||||
Schedule of Fair value and Carrying Value of Financial Instruments | The following table represents the fair value, derived using level 2 inputs, of financial instruments presented at carrying value in the Company's consolidated financial statements as of September 30, 2013 and December 31, 2012: | |||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | |||||||||||||
Note receivable | $ | 70,345 | $ | 70,345 | $ | 68,490 | $ | 68,490 | ||||||||
Borrowings under credit facilities | $ | 461,000 | $ | 462,660 | $ | 153,000 | $ | 153,719 | ||||||||
Term loans | $ | 477,500 | $ | 476,070 | $ | 477,500 | $ | 475,752 | ||||||||
Bonds payable | $ | 42,500 | $ | 42,500 | $ | 42,500 | $ | 42,500 | ||||||||
Mortgage loans | $ | 515,653 | $ | 527,722 | $ | 579,220 | $ | 607,109 | ||||||||
Earnings_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||
Computation Of Basic And Diluted Earnings Per Common Share | The computation of basic and diluted earnings per common share is as follows: | |||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Numerator: | ||||||||||||||||
Net income attributable to common shareholders | $ | 28,534 | $ | 26,507 | $ | 56,329 | $ | 35,182 | ||||||||
Dividends paid on unvested restricted shares | (103 | ) | (78 | ) | (250 | ) | (213 | ) | ||||||||
Undistributed earnings attributable to unvested restricted shares | (6 | ) | (41 | ) | 0 | 0 | ||||||||||
Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares | $ | 28,425 | $ | 26,388 | $ | 56,079 | $ | 34,969 | ||||||||
Denominator: | ||||||||||||||||
Weighted average number of common shares - basic | 95,890,474 | 85,876,584 | 95,510,088 | 85,278,331 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Stock options and compensation-related shares | 191,866 | 180,373 | 171,675 | 171,212 | ||||||||||||
Weighted average number of common shares - diluted | 96,082,340 | 86,056,957 | 95,681,763 | 85,449,543 | ||||||||||||
Earnings per Common Share - Basic: | ||||||||||||||||
Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares | $ | 0.3 | $ | 0.31 | $ | 0.59 | $ | 0.41 | ||||||||
Earnings per Common Share - Diluted: | ||||||||||||||||
Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares | $ | 0.3 | $ | 0.31 | $ | 0.59 | $ | 0.41 | ||||||||
Supplemental_Information_To_St1
Supplemental Information To Statements Of Cash Flows (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Supplemental Cash Flow Information [Abstract] | ||||||||
Supplemental Information To Statements Of Cash Flows | ||||||||
For the nine months ended | ||||||||
September 30, | ||||||||
2013 | 2012 | |||||||
Interest paid, net of capitalized interest | $ | 41,388 | $ | 36,660 | ||||
Interest capitalized | 521 | 259 | ||||||
Income taxes paid, net | 1,311 | 2,117 | ||||||
Increase in distributions payable on common shares | 7,887 | 8,063 | ||||||
Decrease in distributions payable on preferred shares | (59 | ) | (3,236 | ) | ||||
Write-off of fully depreciated furniture, fixtures and equipment | 7,888 | 0 | ||||||
Write-off of fully amortized deferred financing costs | 203 | 162 | ||||||
Increase (decrease) in accrued capital expenditures | 2,671 | (2,176 | ) | |||||
Grant of restricted shares and awards to employees and executives, net | 4,957 | 4,764 | ||||||
Issuance of common shares for Board of Trustees compensation | 277 | 494 | ||||||
In conjunction with the acquisition of properties, the Company assumed | ||||||||
assets and liabilities as follows: | ||||||||
Investment in properties (after credits at closing) | $ | (349,802 | ) | $ | (143,721 | ) | ||
Other assets | (2,509 | ) | (565 | ) | ||||
Liabilities | 50,176 | 1,342 | ||||||
Acquisition of properties | $ | (302,135 | ) | $ | (142,944 | ) |
Subsequent_Events_Tables
Subsequent Events (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Subsequent Events [Abstract] | |||||||||||
Components Of Common And Preferred Share Dividends | The Company paid the following common and preferred dividends subsequent to September 30, 2013: | ||||||||||
Dividend per | For the Quarter | Record | Payable | ||||||||
Security Type | Share/Unit (1) | Ended | Date | Date | |||||||
Common Shares/Units | $ | 0.28 | September 30, 2013 | September 30, 2013 | October 15, 2013 | ||||||
7 ¼% Series G Preferred Shares | $ | 0.45 | September 30, 2013 | October 1, 2013 | October 15, 2013 | ||||||
7 ½% Series H Preferred Shares | $ | 0.47 | September 30, 2013 | October 1, 2013 | October 15, 2013 | ||||||
6 3/8% Series I Preferred Shares | $ | 0.4 | September 30, 2013 | October 1, 2013 | October 15, 2013 | ||||||
(1) | Amounts are rounded to the nearest whole cent for presentation purposes. |
Organization_Details
Organization (Details) | 9 Months Ended |
Sep. 30, 2013 | |
Hotels | |
Guest_Rooms | |
States | |
Organization [Abstract] | |
Number of hotels | 45 |
Number of guest rooms | 11,400 |
Number of states in which hotels located | 10 |
LHL leases expiration dates | between December 2013 and December 2016 |
Ownership percentage by the company | 99.70% |
Ownership percentage by limited partners | 0.30% |
Common units of Operating Partnership interest held by limited partners | 296,300 |
Investment_in_Properties_Narra
Investment in Properties (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Aug. 08, 2012 | 30-May-12 | Feb. 14, 2012 | Dec. 19, 2012 |
Hotel Palomar Washington Dc [Member] | Hotel Palomar Washington Dc [Member] | Park Central Hotel [Member] | Mezzanine Loan [Member] | Mezzanine Loan [Member] | 2011 Agreement [Member] | 2011 Agreement [Member] | 2011 Agreement [Member] | Underwritten Public Offering [Member] | ||||||
Investment In Hotel Properties [Line Items] | ||||||||||||||
Land | $602,696 | $602,696 | $480,705 | |||||||||||
Buildings and improvements | 3,181,324 | 3,181,324 | 2,932,532 | |||||||||||
Furniture, fixtures and equipment | 538,013 | 538,013 | 472,052 | |||||||||||
Investment in hotel properties, gross | 4,322,033 | 4,322,033 | 3,885,289 | |||||||||||
Accumulated depreciation | -931,178 | -931,178 | -832,245 | |||||||||||
Depreciation | 40,521 | 31,336 | 106,854 | 92,483 | ||||||||||
Acquisition transaction costs | 2,687 | 156 | 2,687 | 4,057 | 0 | 3,594 | 156 | 363 | ||||||
Decrease in purchase price allocation | 746 | |||||||||||||
Common shares of beneficial interest issued | 96,258,828 | 96,258,828 | 95,480,358 | 3,100 | 641,069 | 1,714,939 | 9,200,000 | |||||||
Investment in hotel properties, net | $3,390,855 | $3,390,855 | $3,053,044 |
Summary_Of_Significant_Account2
Summary Of Significant Accounting Policies (Narrative) (Details) (Equity Incentive Plan 2009 [Member]) | 9 Months Ended |
Sep. 30, 2013 | |
Significant Accounting Policies [Line Items] | |
Remaining years | 5 years |
Minimum [Member] | |
Significant Accounting Policies [Line Items] | |
Vesting period (in years) | 3 years |
Maximum [Member] | |
Significant Accounting Policies [Line Items] | |
Vesting period (in years) | 9 years |
Investment_in_Properties_Summa
Investment in Properties (Summary Of Acquisitions) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Aug. 01, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Aug. 01, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Hotels | Hotels | Viceroy Santa Monica [Member] | Viceroy Santa Monica [Member] | Harbor Court Hotel [Member] | Harbor Court Hotel [Member] | Harbor Court Hotel [Member] | Hotel Palomar Washington Dc [Member] | Hotel Palomar Washington Dc [Member] | Hotel Palomar Washington Dc [Member] | L'Auberge Del Mar [Member] | The Liberty Hotel [Member] | Mezzanine Loan [Member] | Mezzanine Loan [Member] | Hotel Triton [Member] | Hotel Triton [Member] | Hotel Triton [Member] | Serrano Hotel [Member] | Serrano Hotel [Member] | Southernmost Hotel Collection [Member] | Southernmost Hotel Collection [Member] | ||||
Guest_Rooms | Guest_Rooms | Guest_Rooms | Guest_Rooms | Guest_Rooms | Guest_Rooms | Guest_Rooms | Guest_Rooms | |||||||||||||||||
Investment In Hotel Properties [Line Items] | ||||||||||||||||||||||||
Real Estate Investment Property, Net | $3,390,855 | $3,390,855 | $3,053,044 | $54,563 | $37,253 | |||||||||||||||||||
Real Estate Accumulated Depreciation | 196 | 196 | 130 | 130 | ||||||||||||||||||||
Business Acquisition, Purchase Price Allocation, Property, Plant and Equipment | 736 | 1,399 | ||||||||||||||||||||||
Revenue from Owned Hotels | 8,570 | 8,570 | ||||||||||||||||||||||
Income From Owned Hotels | 682 | 682 | ||||||||||||||||||||||
Ownership Percent | 100.00% | 100.00% | ||||||||||||||||||||||
Acquisition transaction costs (Note 3) | 2,687 | 156 | 2,687 | 4,057 | 0 | 100 | 578 | 578 | 0 | 3,594 | 156 | 363 | 115 | 115 | 1,010 | 1,010 | 984 | 984 | ||||||
Acquisition Date | 1-Aug-13 | 8-Mar-12 | 6-Dec-12 | 28-Dec-12 | 1-Aug-13 | 21-Aug-13 | 27-Aug-13 | |||||||||||||||||
Number Of Rooms Acquired | 131 | 131 | 140 | 140 | 236 | 236 | 260 | 260 | ||||||||||||||||
Location Of Hotel | San Francisco, CA | San Francisco, CA | San Francisco, CA | Key West, FL | ||||||||||||||||||||
Business Acquisition, Cost of Acquired Entity, Purchase Price | $303,775 | $303,775 | $36,875 | $36,875 | $10,900 | $10,900 | $71,500 | $71,500 | $184,500 | $184,500 | ||||||||||||||
Hotel Manager | Kimpton Hotel & Restaurant Group, L.L.C. | Kimpton Hotel & Restaurant Group, L.L.C. | Kimpton Hotel & Restaurant Group, L.L.C. | Highgate Hotels | ||||||||||||||||||||
Number Of Hotels Owned | 4 | 4 |
Investment_in_Properties_Sched
Investment in Properties (Schedule of Condensed Pro Forma Financial Information) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Aug. 08, 2012 | 30-May-12 | Feb. 14, 2012 | Dec. 19, 2012 | 31-May-13 |
2011 Agreement [Member] | 2011 Agreement [Member] | 2011 Agreement [Member] | Underwritten Public Offering [Member] | 2013 Agreement [Member] | ||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||||||||
Common shares of beneficial interest issued | 96,258,828 | 96,258,828 | 95,480,358 | 3,100 | 641,069 | 1,714,939 | 9,200,000 | 721,706 | ||
Total revenues | $278,024 | $269,571 | $769,879 | $750,963 | ||||||
Net income | 32,821 | 33,257 | 74,771 | 63,416 | ||||||
Net income attributable to common shareholders | $28,607 | $28,975 | $59,676 | $41,208 | ||||||
Earnings per common share - basic (in dollars per share) | $0.30 | $0.30 | $0.62 | $0.43 | ||||||
Earnings per common share - diluted (in dollars per share) | $0.30 | $0.30 | $0.62 | $0.43 | ||||||
Weighted average number of common shares outstanding, Basic (in shares) | 95,890,474 | 95,799,571 | 95,889,692 | 95,774,870 | ||||||
Weighted average number of common shares outstanding, Diluted (in shares) | 96,082,340 | 95,979,943 | 96,061,368 | 95,946,082 |
LongTerm_Debt_Components_Of_Lo
Long-Term Debt (Components Of Long-Term Debt) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | 16-May-12 | Sep. 30, 2013 | Dec. 31, 2012 | Aug. 02, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Jun. 03, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | ||||||||||
Senior Unsecured Credit Facility [Member] | Senior Unsecured Credit Facility [Member] | LHL Unsecured Credit Facility [Member] | LHL Unsecured Credit Facility [Member] | Harborside Hyatt Conference Center & Hotel (Taxable) [Member] | Harborside Hyatt Conference Center & Hotel (Taxable) [Member] | Harborside Hyatt Conference Center & Hotel (Tax Exempt) [Member] | Harborside Hyatt Conference Center & Hotel (Tax Exempt) [Member] | Hotel Deca [Member] | Hotel Deca [Member] | Letters Of Credit [Member] | First Term Loan [Member] | First Term Loan [Member] | First Term Loan [Member] | Second Term Loan [Member] | Second Term Loan [Member] | Second Term Loan [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | |||||||||||||
extensions | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Hotel Solamar [Member] | Hotel Solamar [Member] | Hotel Solamar [Member] | Hotel Deca [Member] | Hotel Deca [Member] | Westin Copley Place [Member] | Westin Copley Place [Member] | Westin Michigan Avenue [Member] | Westin Michigan Avenue [Member] | Indianapolis Marriott Downtown [Member] | Indianapolis Marriott Downtown [Member] | Hotel Roger Williams [Member] | Hotel Roger Williams [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Credit facilities | $461,000,000 | $153,000,000 | $461,000,000 | $153,000,000 | $0 | $0 | ||||||||||||||||||||||||||||||||||||
Term loans | 477,500,000 | 477,500,000 | 177,500,000 | 177,500,000 | 177,500,000 | 300,000,000 | 300,000,000 | 300,000,000 | ||||||||||||||||||||||||||||||||||
Massport Bonds | 42,500,000 | 42,500,000 | 5,400,000 | 5,400,000 | 37,100,000 | 37,100,000 | ||||||||||||||||||||||||||||||||||||
Repayment date of debt instrument | 3-Jun-13 | |||||||||||||||||||||||||||||||||||||||||
Mortgage loans at stated value | 515,591,000 | 579,102,000 | 59,789,000 | 0 | 60,134,000 | 8,886,000 | 9,111,000 | 210,000,000 | 210,000,000 | 135,795,000 | 137,172,000 | 99,203,000 | 100,142,000 | 61,707,000 | 62,543,000 | |||||||||||||||||||||||||||
Unamortized loan premium | 62,000 | [1] | 118,000 | [1] | 62,000 | 118,000 | ||||||||||||||||||||||||||||||||||||
Total mortgage loans | 515,653,000 | 579,220,000 | ||||||||||||||||||||||||||||||||||||||||
Total debt | $1,496,653,000 | $1,252,220,000 | ||||||||||||||||||||||||||||||||||||||||
Credit facility interest rate | Floating | [2] | Floating | [3] | Floating | [4] | Floating | [4] | ||||||||||||||||||||||||||||||||||
Credit facility maturity date | 30-Jan-16 | [2] | 30-Jan-16 | [3] | 1-Feb-14 | |||||||||||||||||||||||||||||||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.87% | 3.87% | 2.68% | 2.68% | 5.49% | 6.28% | 5.28% | 5.75% | 5.99% | 6.31% | ||||||||||||||||||||||||||||||||
Massport bond interest rate | Floating | [5] | Floating | [5] | ||||||||||||||||||||||||||||||||||||||
Debt maturity date | 1-Mar-18 | 1-Mar-18 | 16-May-19 | 16-May-19 | 2-Aug-17 | 2-Aug-17 | 1-Dec-13 | [6] | 1-Aug-14 | [7] | 1-Sep-15 | 1-Apr-16 | 1-Jul-16 | 1-Aug-16 | ||||||||||||||||||||||||||||
Interest rate on variable rate debt | 2.19% | 2.22% | 0.70% | 0.65% | 0.11% | 0.17% | ||||||||||||||||||||||||||||||||||||
Credit facility potential maturity date under option to extend | Jan-17 | Jan-17 | ||||||||||||||||||||||||||||||||||||||||
Term loan, Duration | 7 years | 5 years | ||||||||||||||||||||||||||||||||||||||||
Term loan extension option period | 1 year | |||||||||||||||||||||||||||||||||||||||||
Number of extension options | 3 | |||||||||||||||||||||||||||||||||||||||||
Extension option period | 1 year | 1 year | 1 year | |||||||||||||||||||||||||||||||||||||||
[1] | Mortgage debt includes an unamortized loan premium on the mortgage loan on Hotel Deca of $62 as of September 30, 2013 and $118 as of December 31, 2012. | |||||||||||||||||||||||||||||||||||||||||
[2] | Borrowings bear interest at floating rates equal to, at the Company’s option, either (i) LIBOR plus an applicable margin, or (ii) an Adjusted Base Rate plus an applicable margin. As of September 30, 2013, the rate, including the applicable margin, for the Company’s outstanding LIBOR borrowings of $461,000 was 2.19%. As of December 31, 2012, the rate, including the applicable margin, for the Company's outstanding LIBOR borrowing of $153,000 was 2.22%. The Company has the option, pursuant to certain terms and conditions, to extend the maturity date to January 2017. | |||||||||||||||||||||||||||||||||||||||||
[3] | Borrowings bear interest at floating rates equal to, at LHL’s option, either (i) LIBOR plus an applicable margin, or (ii) an Adjusted Base Rate plus an applicable margin. There were no borrowings outstanding at September 30, 2013 or December 31, 2012. LHL has the option, subject to certain terms and conditions, to extend the maturity date to January 2017. | |||||||||||||||||||||||||||||||||||||||||
[4] | Term loans bear interest at floating rates equal to LIBOR plus an applicable margin. The Company entered into separate interest rate swap agreements for the full seven-year term of the First Term Loan (as defined below) and the full five-year term, including a one-year extension subject to certain conditions, of the Second Term Loan (as defined below), resulting in fixed all-in interest rates of 3.87% and 2.68%, respectively, at the Company's current leverage ratio (as defined in the swap agreements). | |||||||||||||||||||||||||||||||||||||||||
[5] | The Massport Bonds are secured by letters of credit issued by the Royal Bank of Scotland that expire in February 2014, pursuant to an amendment to the agreement governing the letters of credit. The Royal Bank of Scotland letters of credit also have three one-year extension options and are secured by the Hyatt Boston Harbor (formerly the Harborside Hyatt Conference Center & Hotel). The Company has given notification of its intention to exercise the first extension option on the letters of credit. The bonds bear interest based on weekly floating rates. The interest rates as of September 30, 2013 were 0.70% and 0.11% for the $5,400 and $37,100 bonds, respectively. The interest rates as of December 31, 2012 were 0.65% and 0.17% for the $5,400 and $37,100 bonds, respectively. The Company also incurs an annual letter of credit fee of a variable rate based on an applicable margin as defined in the Company's senior unsecured credit agreement. | |||||||||||||||||||||||||||||||||||||||||
[6] | The Company repaid the mortgage loan on June 3, 2013 through borrowings on its senior unsecured credit facility. | |||||||||||||||||||||||||||||||||||||||||
[7] | The Company intends to repay the mortgage loan through borrowings on its credit facilities upon maturity. |
LongTerm_Debt_Summary_Interest
Long-Term Debt (Summary Interest Expense And Weighted Average Interest Rates For Borrowings) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Debt Instrument [Line Items] | ||||
Interest incurred | $14,271 | $13,611 | $41,342 | $37,296 |
Amortization of deferred financing costs | 556 | 526 | 1,696 | 1,354 |
Capitalized interest | -90 | -27 | -521 | -259 |
Interest Expense | $14,737 | $14,110 | $42,517 | $38,391 |
Senior Unsecured Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate During Period | 2.10% | 2.30% | 2.10% | 2.20% |
LHL Unsecured Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate During Period | 1.20% | 2.20% | 2.00% | 2.10% |
Massport Bonds [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate During Period | 0.20% | 0.20% | 0.20% | 0.30% |
LongTerm_Debt_Credit_Facilitie
Long-Term Debt (Credit Facilities Narrative) (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | ||
Senior Unsecured Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity under unsecured credit facility | $750,000,000 | |
Credit facility maturity date | 30-Jan-16 | [1] |
Extension option period | 1 year | |
Additional commitments | 1,000,000,000 | |
LHL Unsecured Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity under unsecured credit facility | $25,000,000 | |
Credit facility maturity date | 30-Jan-16 | [2] |
Extension option period | 1 year | |
Minimum [Member] | Senior Unsecured Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Variable unused commitment fee | 0.30% | |
Minimum [Member] | LHL Unsecured Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Variable unused commitment fee | 0.30% | |
Maximum [Member] | Senior Unsecured Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Variable unused commitment fee | 0.40% | |
Maximum [Member] | LHL Unsecured Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Variable unused commitment fee | 0.40% | |
[1] | Borrowings bear interest at floating rates equal to, at the Company’s option, either (i) LIBOR plus an applicable margin, or (ii) an Adjusted Base Rate plus an applicable margin. As of September 30, 2013, the rate, including the applicable margin, for the Company’s outstanding LIBOR borrowings of $461,000 was 2.19%. As of December 31, 2012, the rate, including the applicable margin, for the Company's outstanding LIBOR borrowing of $153,000 was 2.22%. The Company has the option, pursuant to certain terms and conditions, to extend the maturity date to January 2017. | |
[2] | Borrowings bear interest at floating rates equal to, at LHL’s option, either (i) LIBOR plus an applicable margin, or (ii) an Adjusted Base Rate plus an applicable margin. There were no borrowings outstanding at September 30, 2013 or December 31, 2012. LHL has the option, subject to certain terms and conditions, to extend the maturity date to January 2017. |
LongTerm_Debt_Longterm_Debt_Te
Long-Term Debt Long-term Debt (Term Loans Narrative) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | 16-May-12 | Sep. 30, 2013 | Dec. 31, 2012 | Aug. 02, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Jun. 03, 2013 | Dec. 31, 2012 | |
Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Hotel Solamar [Member] | Hotel Solamar [Member] | Hotel Solamar [Member] | ||||
First Term Loan [Member] | First Term Loan [Member] | First Term Loan [Member] | Second Term Loan [Member] | Second Term Loan [Member] | Second Term Loan [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | ||||
Debt Instrument [Line Items] | ||||||||||||
Mortgage loans at stated value | $515,591,000 | $579,102,000 | $0 | $59,789,000 | $60,134,000 | |||||||
Unsecured Debt | $477,500,000 | $477,500,000 | $177,500,000 | $177,500,000 | $177,500,000 | $300,000,000 | $300,000,000 | $300,000,000 | ||||
Term loan, Duration | 7 years | 5 years | ||||||||||
Debt maturity date | 16-May-19 | 16-May-19 | 2-Aug-17 | 2-Aug-17 | 1-Dec-13 | [1] | ||||||
Term loan extension option period | 1 year | |||||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.87% | 3.87% | 2.68% | 2.68% | 5.49% | |||||||
[1] | The Company repaid the mortgage loan on June 3, 2013 through borrowings on its senior unsecured credit facility. |
LongTerm_Debt_Derivative_and_H
Long-Term Debt (Derivative and Hedging Activities, Mortgage Loans and Financial Covenants) (Details) (USD $) | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2013 | Dec. 31, 2012 | Aug. 02, 2012 | 16-May-12 | 16-May-12 | Sep. 30, 2013 | Dec. 31, 2012 | Aug. 02, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Jun. 03, 2013 | Sep. 30, 2013 | ||
Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | First Term Loan [Member] | First Term Loan [Member] | First Term Loan [Member] | Second Term Loan [Member] | Second Term Loan [Member] | Second Term Loan [Member] | Mortgages [Member] | Mortgages [Member] | ||
Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Hotel Solamar [Member] | Hotel Solamar [Member] | ||
agreement | agreement | ||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt maturity date | 16-May-19 | 16-May-19 | 2-Aug-17 | 2-Aug-17 | 1-Dec-13 | [1] | |||||||
Number of interest rate swap agreements | 5 | 3 | |||||||||||
Interest rate swap aggregate notional amount | $300,000,000 | $177,500,000 | |||||||||||
Term loan, Duration | 7 years | 5 years | |||||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.87% | 3.87% | 2.68% | 2.68% | 5.49% | ||||||||
Term loan extension option period | 1 year | ||||||||||||
Derivative change in fair value recorded in other comprehensive income (loss) | 2,496,000 | -7,759,000 | |||||||||||
Unrealized gain (loss) included in accumulated other comprehensive income (loss) | 2,488,000 | -7,735,000 | |||||||||||
Derivative change in fair value recorded in other comprehensive income (loss) attributable to noncontrolling interests | 8,000 | -24,000 | |||||||||||
Amount reclassified from AOCL and noncontrolling interests and recognized as a redution to income in the next 12 months | $4,272,000 | ||||||||||||
Repayment date of debt instrument | 3-Jun-13 | ||||||||||||
[1] | The Company repaid the mortgage loan on June 3, 2013 through borrowings on its senior unsecured credit facility. |
LongTerm_Debt_Schedule_of_Deri
Long-Term Debt Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance (Details) (Cash Flow Hedging [Member], Interest Rate Swap [Member], Designated as Hedging Instrument [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI on Derivative Instruments (Effective Portion) | ($2,345) | ($3,839) | $10,255 | ($8,534) |
Interest Expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Loss Reclassified from AOCI (Effective Portion) | $1,072 | $780 | $3,153 | $1,082 |
Commitments_And_Contingencies_1
Commitments And Contingencies (Ground, Land And Building, And Air Rights Leases) (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Oct. 06, 2010 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Aug. 01, 2013 | Sep. 30, 2013 | Aug. 01, 2013 |
ground_lease | Minimum [Member] | Maximum [Member] | Harborside Hyatt Conference Center & Hotel [Member] | Westin Copley Place [Member] | Indianapolis Marriott Downtown [Member] | Viceroy Santa Monica and The Liberty Hotel [Member] | Viceroy Santa Monica and The Liberty Hotel [Member] | Viceroy Santa Monica and The Liberty Hotel [Member] | Viceroy Santa Monica and The Liberty Hotel [Member] | Hotel Roger Williams [Member] | Harbor Court Hotel [Member] | Harbor Court Hotel [Member] | Hotel Triton [Member] | Hotel Triton [Member] | |||||
Hotels | |||||||||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||||||||
Number of ground leases that expire prior to 2045 | 0 | ||||||||||||||||||
Number of hotels subject to ground leases under non-cancelable operating leases | 7 | ||||||||||||||||||
Lease expiration date | 1-Jan-45 | 1-Mar-26 | 1-Dec-02 | 1-Mar-26 | 1-Dec-77 | 1-Dec-44 | 1-Apr-48 | 1-Jan-48 | |||||||||||
Lease extension period (in years) | 50 years | ||||||||||||||||||
Extended Lease Expiration Date | 2077 | ||||||||||||||||||
Future ground rent payments per year | 0 | 1 | |||||||||||||||||
Noncash straight-line rent expense | $327 | $114 | $981 | $342 | |||||||||||||||
Present value of the remaining rent payments | 4,892 | 18,424 | 27,752 | ||||||||||||||||
Ground rent (Note 5) | $3,249 | $2,627 | $8,535 | $6,613 |
Commitments_And_Contingencies_2
Commitments And Contingencies (Future Minimum Rent Payments) (Details) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2013 | $2,592 |
2014 | 10,131 |
2015 | 10,321 |
2016 | 10,515 |
2017 | 10,752 |
Thereafter | 533,249 |
Operating leases, future minimum payments due, total | $577,560 |
Commitments_And_Contingencies_3
Commitments And Contingencies (Reserve Funds And Restricted Cash Reserves) (Narrative) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | Minimum [Member] | Maximum [Member] | Capital Expenditure [Member] | Operating Expenses And Debt Payments [Member] | Refund Future Liabilities [Member] | ||
Commitments And Contingencies [Line Items] | |||||||
Percentage of reserve funds provided by the company | 4.00% | 5.00% | |||||
Restricted cash reserves | $18,198 | $17,414 | $12,317 | $4,417 | $1,464 |
Equity_Common_Shares_Of_Benefi
Equity (Common Shares Of Beneficial Interest) (Narrative) (Details) (USD $) | 9 Months Ended | 0 Months Ended | 0 Months Ended | 9 Months Ended | ||||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Jan. 30, 2013 | Jan. 02, 2013 | Feb. 20, 2013 | Aug. 08, 2012 | 30-May-12 | Feb. 14, 2012 | 31-May-13 | Sep. 30, 2013 | Feb. 20, 2013 |
2009 Plan [Member] | 2009 Plan [Member] | 2011 Agreement [Member] | 2011 Agreement [Member] | 2011 Agreement [Member] | 2011 Agreement [Member] | 2013 Agreement [Member] | 2013 Agreement [Member] | 2013 Agreement [Member] | ||||
Equity [Line Items] | ||||||||||||
Common shares of beneficial interest, shares issued | 96,258,828 | 95,480,358 | 10,332 | 3,100 | 641,069 | 1,714,939 | 721,706 | |||||
Additional deferred shares issued | 7,921 | |||||||||||
Issuance of restricted common shares of beneficial interest | 81,400 | |||||||||||
Vesting period (in years) | 3 years | |||||||||||
Common shares of beneficial interest, potential available offereing price with aggregate gross proceeds | $250,000 | |||||||||||
Common shares of beneficial interest, potential offering price remaining | 146,024 | 230,057 | ||||||||||
Offering costs | 195 | |||||||||||
Common Stock, Par or Stated Value Per Share | $0.01 | $0.01 | $0.01 | |||||||||
Equity Distribution Agreement Discounts And Commissions | 250 | |||||||||||
Proceeds from Issuance of Common Stock | $19,943 | $64,786 | $19,693 |
Equity_Common_Dividends_Paid_D
Equity (Common Dividends Paid) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | |
Stockholders' Equity Note [Abstract] | |||||
Dividend per Share/Unit | $0.20 | $0.20 | $0.20 | $0.68 | $0.51 |
For the Quarter Ended | 30-Jun-13 | 31-Mar-13 | 31-Dec-12 | ||
Record Date | 28-Jun-13 | 28-Mar-13 | 31-Dec-12 | ||
Payable Date | 15-Jul-13 | 15-Apr-13 | 15-Jan-13 |
Equity_Treasury_Shares_Narrati
Equity (Treasury Shares) (Narrative) (Details) (USD $) | 0 Months Ended | 9 Months Ended |
In Thousands, except Share data, unless otherwise specified | Aug. 29, 2011 | Sep. 30, 2013 |
Equity [Line Items] | ||
Common shares surrendered and forfeited by executives and employees | 2,463 | |
Stock repurchase program, authorized | $100,000 | |
Stock repurchase program, remaining authorized | $75,498 | |
Issuance of shares of beneficial interest from treasury | 10,332 | |
Common shares held in treasury | 510 | |
Restricted Stock [Member] | ||
Equity [Line Items] | ||
Issuance of shares of beneficial interest from treasury | 26,535 |
Equity_Preferred_Shares_Narrat
Equity (Preferred Shares) (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | 21-May-12 | Sep. 30, 2012 | 21-May-12 | Sep. 30, 2012 | 21-May-12 | Sep. 30, 2013 | Apr. 05, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 12, 2013 | Mar. 04, 2013 | Sep. 30, 2013 | |
Series D Preferred Stock [Member] | Series D Preferred Stock [Member] | Series E Preferred Stock [Member] | Series E Preferred Stock [Member] | Series D and E Preferred Stock [Member] | 7 1/4% Series G Preferred Shares [Member] | 7 1/4 Series G Preferred Shares (redemption) [Member] | 7 1/4 Series G Preferred Shares (redemption) [Member] | Series H and I Preferred Stock [Member] | 7 1/2% Series H Preferred Shares [Member] | 6 3/8% Series I Preferred Stock [Member] | 6 3/8% Series I Preferred Stock [Member] | 6 3/8% Series I Preferred Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||||||||||||||
Preferred stock, shares issued | 9,498,888 | 9,498,888 | 9,098,888 | 400,000 | 4,000,000 | |||||||||||||
Cumulative redeemable preferred shares, stated percentage | 7.25% | 7.50% | 6.38% | |||||||||||||||
Redeemable preferred shares, par value | $0.01 | $0.01 | $0.01 | $0.01 | ||||||||||||||
Redeemable preferred stock market price per share | $25 | |||||||||||||||||
Proceeds from issuance of preferred stock | $110,000,000 | $0 | $9,685,000 | $96,667,000 | ||||||||||||||
Stock Redeemed or Called During Period, Shares | 3,170,000 | 3,500,000 | 4,000,000 | |||||||||||||||
Preferred shares, shares outstanding | 9,498,888 | 9,498,888 | 9,098,888 | 2,348,888 | 6,348,888 | 2,750,000 | 4,400,000 | |||||||||||
Stock Redeemed or Called During Period, Value | 100,000,000 | 166,750,000 | 79,250,000 | 87,500,000 | 100,000,000 | |||||||||||||
Redeemable preferred stock redemption price per share | $25 | $25 | $25 | $25 | ||||||||||||||
Distributions payable | 31,142,000 | 31,142,000 | 23,314,000 | 842,000 | 992,000 | 1,913,000 | ||||||||||||
Issuance costs of redeemed preferred shares | $0 | $0 | $1,566,000 | $4,417,000 | ($2,273,000) | $2,273,000 | ($2,144,000) | $2,144,000 | ($1,566,000) | $1,566,000 | ||||||||
Preferred stock redeemable term (in days) | 120 days | |||||||||||||||||
Shares issued upon conversion | 4,680,500 | 8,835,200 |
Equity_Preferred_Shares_Outsta
Equity (Preferred Shares Outstanding) (Details) | Sep. 30, 2013 | Dec. 31, 2012 |
Class of Stock [Line Items] | ||
Number of Shares | 9,498,888 | 9,098,888 |
7 1/4% Series G Preferred Shares [Member] | ||
Class of Stock [Line Items] | ||
Number of Shares | 2,348,888 | |
7 1/2% Series H Preferred Shares [Member] | ||
Class of Stock [Line Items] | ||
Number of Shares | 2,750,000 | |
6 3/8% Series I Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Number of Shares | 4,400,000 |
Equity_Preferred_Dividends_Pai
Equity (Preferred Dividends Paid) (Details) (USD $) | 3 Months Ended | |||
Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | ||
Class of Stock [Line Items] | ||||
For the Quarter Ended | 30-Jun-13 | 31-Mar-13 | 31-Dec-12 | |
Record Date | 28-Jun-13 | 28-Mar-13 | 31-Dec-12 | |
Payable Date | 15-Jul-13 | 15-Apr-13 | 15-Jan-13 | |
7 1/4% Series G Preferred Shares [Member] | ||||
Class of Stock [Line Items] | ||||
Dividend per Share | 0.45 | 0.45 | 0.45 | [1] |
For the Quarter Ended | 30-Jun-13 | 31-Mar-13 | 31-Dec-12 | |
Record Date | 1-Jul-13 | 28-Mar-13 | 1-Jan-13 | |
Payable Date | 15-Jul-13 | 15-Apr-13 | 15-Jan-13 | |
7 1/4 Series G Preferred Shares (redemption) [Member] | ||||
Class of Stock [Line Items] | ||||
Dividend per Share | 0.48 | |||
For the Quarter Ended | 31-Mar-13 | |||
Record Date | 28-Mar-13 | |||
Payable Date | 5-Apr-13 | |||
7 1/2% Series H Preferred Shares [Member] | ||||
Class of Stock [Line Items] | ||||
Dividend per Share | 0.47 | 0.47 | 0.47 | [1] |
For the Quarter Ended | 30-Jun-13 | 31-Mar-13 | 31-Dec-12 | |
Record Date | 1-Jul-13 | 28-Mar-13 | 1-Jan-13 | |
Payable Date | 15-Jul-13 | 15-Apr-13 | 15-Jan-13 | |
6 3/8% Series I Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Dividend per Share | 0.4 | 0.18 | ||
For the Quarter Ended | 30-Jun-13 | 31-Mar-13 | ||
Record Date | 1-Jul-13 | 28-Mar-13 | ||
Payable Date | 15-Jul-13 | 15-Apr-13 | ||
[1] | Amounts are rounded to the nearest whole cent for presentation purposes. |
Equity_Noncontrolling_Interest
Equity (Noncontrolling Interest Of Common Units In Operating Partnership) (Narrative) (Details) (USD $) | Sep. 30, 2013 |
In Thousands, except Share data, unless otherwise specified | |
Stockholders' Equity Note [Abstract] | |
Common units of limited partnership | 296,300 |
Partnership interest held by limited partners | 0.30% |
Common units of operating partnership interest for cash or common shares | $8,450 |
Closing common share price, per share | $28.52 |
Equity_Schedule_Of_Effects_Of_
Equity (Schedule Of Effects Of Changes In The Company's Ownership Interest In The Operating Partnership On The Company's Equity) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Stockholders' Equity Note [Abstract] | ||||
Net income attributable to common shareholders | $28,534 | $26,507 | $56,329 | $35,182 |
Increase (decrease) in additional paid-in capital from adjustments to noncontrolling interests of common units in Operating Partnership | 1 | -785 | ||
Change from net income attributable to common shareholders and adjustments to noncontrolling interests | $56,330 | $34,397 |
Equity_Incentive_Plan_Equity_I
Equity Incentive Plan (Equity Incentive) (Narrative) (Details) (Equity Incentive Plan 2009 [Member]) | 9 Months Ended |
Sep. 30, 2013 | |
Equity Incentive Plan [Line Items] | |
Maximum common shares of beneficial interest to be issued | 1,800,000 |
Common shares of beneficial interest to be issued per individual limit | 500,000 |
Exercise price of share options as a percentage of fair market value, minimum | 100.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 0 |
Common shares available for grant | 1,164,127 |
Minimum [Member] | |
Equity Incentive Plan [Line Items] | |
Vesting period (in years) | 3 years |
Minimum [Member] | Restricted Stock [Member] | |
Equity Incentive Plan [Line Items] | |
Vesting period (in years) | 3 years |
Maximum [Member] | |
Equity Incentive Plan [Line Items] | |
Vesting period (in years) | 9 years |
Maximum [Member] | Restricted Stock [Member] | |
Equity Incentive Plan [Line Items] | |
Vesting period (in years) | 5 years |
Equity_Incentive_Plan_Service_
Equity Incentive Plan (Service Condition Nonvested Share Awards) (Narrative) (Details) (Service Condition Nonvested Share Awards [Member], USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Equity Incentive Plan [Line Items] | |||||
Unrecognized compensation costs | $5,882 | $5,882 | $5,919 | ||
Weighted-average recognized period (in years) | 2 years 3 months 18 days | 2 years 8 months 12 days | |||
Total fair value of vested shares | 4 | 1,483 | 8 | 3,118 | |
Compensation costs | $751 | $702 | $2,171 | $2,094 | |
Minimum [Member] | |||||
Equity Incentive Plan [Line Items] | |||||
Vest period (in years) | 3 years | ||||
Maximum [Member] | |||||
Equity Incentive Plan [Line Items] | |||||
Vest period (in years) | 9 years |
Equity_Incentive_Plan_Equity_I1
Equity Incentive Plan Equity Incentive Plan (Summary of the Company's Service Condition Nonvested Shares) (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | ||
Service Condition Nonvested Share Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ||
Nonvested, Number of Shares Beginning Balance | 252,772 | |
Nonvested, Weighted - Average Grant Date Fair Value Beginning Balance | $29.72 | |
Number of Shares, Granted | 83,299 | |
Weighted- Average Grant Date Fair Value, Granted | $27.19 | |
Number of Shares, Vested | -294 | |
Weighted - Average Grant Date Fair Value, Vested | $27.19 | |
Number of Shares, Forfeited | -2,360 | |
Weighted - Average Grant Date Fair Value | $27.34 | |
Nonvested, Number of Shares Ending Balance | 333,417 | [1] |
Nonvested, Weighted - Average Grant Date Fair Value Ending Balance | $29.11 | |
Long Term Performance Based Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ||
Long-term performance-based shares which were earned but nonvested | 34,318 | |
[1] | Amount excludes 34,318 long-term performance-based shares which were earned but nonvested due to a service condition as of September 30, 2013. |
Equity_Incentive_Plan_LongTerm
Equity Incentive Plan (Long-Term Performance Based Share Awards) (Narrative) (Details) (Long-Term Performance-Based Share Awards [Member], USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||||
In Thousands, except Share data, unless otherwise specified | Jan. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Jan. 30, 2013 | Jan. 30, 2013 | Jan. 30, 2013 | Jan. 30, 2013 | Jun. 30, 2013 | Jan. 30, 2013 | ||
Restricted Stock [Member] | Restricted Stock [Member] | Minimum [Member] | Maximum [Member] | Performance Period One [Member] | Performance Period Two [Member] | Return on Invested Capital [Member] | Return on Invested Capital [Member] | |||||||||
Equity Incentive Plan [Line Items] | ||||||||||||||||
Number of Shares, Granted | 80,559 | 80,559 | 40,280 | 40,279 | ||||||||||||
Performance Shares Outstanding | 0 | 0 | ||||||||||||||
Number Of Shares Earned As A Percentage Of Target Shares | 0.00% | 200.00% | 200.00% | 100.00% | ||||||||||||
Unrecognized compensation costs | $5,658 | $5,658 | $4,883 | |||||||||||||
Weighted-average recognized period (in years) | 2 years 3 months 18 days | 2 years 7 months 6 days | ||||||||||||||
Number of shares vested | 153,943 | 153,943 | 153,943 | |||||||||||||
Number of shares to be vested | 289,545 | [1] | 289,545 | [1] | 208,986 | 34,318 | 34,318 | |||||||||
Compensation costs | $703 | $501 | $1,917 | $1,504 | ||||||||||||
[1] | (1) Amount excludes 50,000 shares that have been committed for future performance share grants. Fair value will be estimated at the beginning of the performance measurement period on July 1, 2014. |
Equity_Incentive_Plan_Assumpti
Equity Incentive Plan (Assumptions Of Performance Measures For Valuation) (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Performance Period One [Member] | Target Amounts [Member] | |
Equity Incentive Plan [Line Items] | |
Volatility | 38.70% |
Interest Rates | 0.42% |
Fair Value of Components of Award | $29.38 |
Weighting of Total Awards | 33.40% |
Performance Period One [Member] | Return on Invested Capital [Member] | |
Equity Incentive Plan [Line Items] | |
Fair Value of Components of Award | $27.20 |
Weighting of Total Awards | 33.30% |
Performance Period One [Member] | Peer Companies [Member] | |
Equity Incentive Plan [Line Items] | |
Volatility | 38.70% |
Interest Rates | 0.42% |
Stock Beta | 0.864 |
Fair Value of Components of Award | $30.51 |
Weighting of Total Awards | 33.30% |
Performance Period Two [Member] | Target Amounts [Member] | |
Equity Incentive Plan [Line Items] | |
Volatility | 38.70% |
Interest Rates | 0.42% |
Fair Value of Components of Award | $27.70 |
Weighting of Total Awards | 33.40% |
Performance Period Two [Member] | Return on Invested Capital [Member] | |
Equity Incentive Plan [Line Items] | |
Fair Value of Components of Award | $27.20 |
Weighting of Total Awards | 33.30% |
Performance Period Two [Member] | Peer Companies [Member] | |
Equity Incentive Plan [Line Items] | |
Volatility | 38.70% |
Interest Rates | 0.42% |
Stock Beta | 0.864 |
Fair Value of Components of Award | $31.34 |
Weighting of Total Awards | 33.30% |
Equity_Incentive_Plan_Equity_I2
Equity Incentive Plan Equity Incentive Plan (Summary of Long-Term Performance-Based Share Awards) (Details) (USD $) | 0 Months Ended | 9 Months Ended | |
Jan. 30, 2013 | Sep. 30, 2013 | ||
Long-Term Performance-Based Share Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||
Nonvested, Number of Shares Beginning Balance | 208,986 | ||
Nonvested, Weighted - Average Grant Date Fair Value Beginning Balance | $34.61 | ||
Number of Shares, Granted | 80,559 | 80,559 | |
Weighted- Average Grant Date Fair Value, Granted | $28.89 | ||
Number of Shares, Vested | 0 | ||
Weighted - Average Grant Date Fair Value, Vested | $0 | ||
Number of Shares, Forfeited | 0 | ||
Weighted - Average Grant Date Fair Value | $0 | ||
Nonvested, Number of Shares Ending Balance | 289,545 | [1] | |
Nonvested, Weighted - Average Grant Date Fair Value Ending Balance | $33.02 | ||
May 31, 2008 Awards (performance period starting July 1, 2011) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||
Number of Shares, Granted | 50,000 | ||
[1] | (1) Amount excludes 50,000 shares that have been committed for future performance share grants. Fair value will be estimated at the beginning of the performance measurement period on July 1, 2014. |
LHL_Summary_Of_Other_Indirect_
LHL (Summary Of Other Indirect Hotel Operating Expenses) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Hotels | Hotels | |||
Statement [Line Items] | ||||
Other Cost and Expense, Operating | $62,121 | $54,532 | $175,045 | $157,725 |
Number of hotels | 45 | 45 | ||
General and administrative | 5,513 | 5,172 | 16,224 | 14,635 |
Other expenses | 1,749 | 922 | 3,918 | 2,391 |
LHL [Member] | ||||
Statement [Line Items] | ||||
Other Cost and Expense, Operating | 62,121 | 54,532 | 175,045 | 157,725 |
Number of hotels | 45 | 45 | ||
General and administrative | 19,913 | 17,029 | 56,234 | 49,800 |
Sales and marketing | 14,096 | 12,519 | 41,489 | 37,659 |
Repairs and maintenance | 8,547 | 7,635 | 24,764 | 23,045 |
Utilities and insurance | 7,906 | 6,837 | 21,467 | 19,501 |
Management and incentive fees | 9,172 | 8,360 | 24,080 | 21,464 |
Franchise fees | 2,031 | 1,737 | 5,870 | 5,077 |
Other expenses | $456 | $415 | $1,141 | $1,179 |
Income_Taxes_Summary_Of_Income
Income Taxes (Summary Of Income Tax Benefit) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Schedule of Income Tax [Line Items] | ||||
Total income tax expense | $2,564 | $4,943 | $2,481 | $6,920 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | 35,312 | 35,732 | 73,905 | 64,310 |
LHL's income tax expense (benefit) [Member] | ||||
Schedule of Income Tax [Line Items] | ||||
Total income tax expense | 2,567 | 4,669 | 1,922 | 6,936 |
Effective income tax rate | 37.70% | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | 5,660 | |||
Operating Partnership's income tax expense (benefit) [Member] | ||||
Schedule of Income Tax [Line Items] | ||||
Total income tax expense | ($3) | $274 | $559 | ($16) |
Fair_Value_Measurements_Fair_V1
Fair Value Measurements Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $2,496 | $0 |
Accounts Payable and Accrued Expenses [Member] | Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivatives included in accounts payable and accrued expenses | $0 | $7,759 |
Fair_Value_Measurements_Fair_V2
Fair Value Measurements Fair Value Measurements - Schedule of Fair Value and Carrying Value of Financial Instruments (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Weighted average effective interest rate | 2.90% | 2.90% |
Fair Value, Inputs, Level 2 [Member] | Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Note receivable | 70,345 | 68,490 |
Borrowings under credit facilities | 461,000 | 153,000 |
Term loans | 477,500 | 477,500 |
Bonds payable | 42,500 | 42,500 |
Mortgage loans | 515,653 | 579,220 |
Fair Value, Inputs, Level 2 [Member] | Estimated Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Note receivable | 70,345 | 68,490 |
Borrowings under credit facilities | 462,660 | 153,719 |
Term loans | 476,070 | 475,752 |
Bonds payable | 42,500 | 42,500 |
Mortgage loans | 527,722 | 607,109 |
Earnings_Per_Common_Share_Comp
Earnings Per Common Share (Computation Of Basic And Diluted Earnings Per Common Share) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Share [Abstract] | ||||
Net income attributable to common shareholders | $28,534 | $26,507 | $56,329 | $35,182 |
Dividends paid on unvested restricted shares | -103 | -78 | -250 | -213 |
Undistributed earnings attributable to unvested restricted shares | -6 | -41 | 0 | 0 |
Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares | $28,425 | $26,388 | $56,079 | $34,969 |
Weighted average number of common shares - basic | 95,890,474 | 85,876,584 | 95,510,088 | 85,278,331 |
Stock options and compensation-related shares | 191,866 | 180,373 | 171,675 | 171,212 |
Weighted average number of common shares - diluted | 96,082,340 | 86,056,957 | 95,681,763 | 85,449,543 |
Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares, Basic (in dollars per share) | $0.30 | $0.31 | $0.59 | $0.41 |
Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares, Diluted (in dollars per share) | $0.30 | $0.31 | $0.59 | $0.41 |
Supplemental_Information_To_St2
Supplemental Information To Statements Of Cash Flows (Supplemental Information To Statements Of Cash Flows) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Supplemental Cash Flow Information [Abstract] | ||
Interest paid, net of capitalized interest | $41,388 | $36,660 |
Interest capitalized | 521 | 259 |
Income taxes paid, net | 1,311 | 2,117 |
Increase in distributions payable on common shares | 7,887 | 8,063 |
Decrease in distributions payable on preferred shares | -59 | -3,236 |
Write off of fully depreciated furniture, fixtures and equipment | 7,888 | 0 |
Write-off of fully amortized deferred financing costs | 203 | 162 |
Increase (decrease) in accrued capital expenditures | 2,671 | -2,176 |
Grant of restricted shares and awards to employees and executives, net | 4,957 | 4,764 |
Issuance of common shares for Board of Trustees compensation | 277 | 494 |
Investment in properties (after credits at closing) | -349,802 | -143,721 |
Other assets | -2,509 | -565 |
Liabilities | 50,176 | 1,342 |
Acquisition of properties | ($302,135) | ($142,944) |
Subsequent_Events_Dividends_De
Subsequent Events Dividends (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |||||||
7 1/4% Series G Preferred Shares [Member] | 7 1/4% Series G Preferred Shares [Member] | 7 1/4% Series G Preferred Shares [Member] | 7 1/2% Series H Preferred Shares [Member] | 7 1/2% Series H Preferred Shares [Member] | 7 1/2% Series H Preferred Shares [Member] | 6 3/8% Series I Preferred Stock [Member] | 6 3/8% Series I Preferred Stock [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||||||||||||
Common Shares Of Beneficial Interest [Member] | 7 1/4% Series G Preferred Shares [Member] | 7 1/2% Series H Preferred Shares [Member] | 6 3/8% Series I Preferred Stock [Member] | ||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||
Common Dividend per Share/Unit | $0.20 | $0.20 | $0.20 | $0.68 | $0.51 | $0.28 | [1] | ||||||||||||||||
Preferred Dividend per Share/Unit | $0.45 | $0.45 | $0.45 | [1] | $0.47 | $0.47 | $0.47 | [1] | $0.40 | $0.18 | $0.45 | [1] | $0.47 | [1] | $0.40 | [1] | |||||||
For the Quarter Ended | 30-Jun-13 | 31-Mar-13 | 31-Dec-12 | 30-Jun-13 | 31-Mar-13 | 31-Dec-12 | 30-Jun-13 | 31-Mar-13 | 31-Dec-12 | 30-Jun-13 | 31-Mar-13 | 30-Sep-13 | 30-Sep-13 | 30-Sep-13 | 30-Sep-13 | ||||||||
Record Date | 28-Jun-13 | 28-Mar-13 | 31-Dec-12 | 1-Jul-13 | 28-Mar-13 | 1-Jan-13 | 1-Jul-13 | 28-Mar-13 | 1-Jan-13 | 1-Jul-13 | 28-Mar-13 | 30-Sep-13 | 1-Oct-13 | 1-Oct-13 | 1-Oct-13 | ||||||||
Payable Date | 15-Jul-13 | 15-Apr-13 | 15-Jan-13 | 15-Jul-13 | 15-Apr-13 | 15-Jan-13 | 15-Jul-13 | 15-Apr-13 | 15-Jan-13 | 15-Jul-13 | 15-Apr-13 | 15-Oct-13 | 15-Oct-13 | 15-Oct-13 | 15-Oct-13 | ||||||||
[1] | Amounts are rounded to the nearest whole cent for presentation purposes. |