Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 10, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | LaSalle Hotel Properties | |
Entity Central Index Key | 1,053,532 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 110,382,519 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Assets: | ||
Investment in hotel properties, net (Note 3) | $ 3,297,028 | $ 3,265,615 |
Property under development | 18,191 | 49,459 |
Cash and cash equivalents | 228,985 | 400,667 |
Restricted cash reserves (Note 5) | 13,871 | 14,262 |
Hotel receivables (net of allowance for doubtful accounts of $361 and $404, respectively) | 30,875 | 35,916 |
Debt issuance costs for borrowings under credit facilities, net | 3,001 | 3,274 |
Deferred tax assets | 5,882 | 2,136 |
Prepaid expenses and other assets | 58,756 | 43,612 |
Total assets | 3,656,589 | 3,814,941 |
Liabilities: | ||
Borrowings under credit facilities (Note 4) | 0 | 0 |
Term loans, net of unamortized debt issuance costs (Note 4) | 853,341 | 853,195 |
Bonds payable, net of unamortized debt issuance costs (Note 4) | 0 | 42,494 |
Mortgage loan, net of unamortized debt issuance costs (Note 4) | 224,671 | 224,432 |
Accounts payable and accrued expenses | 144,043 | 134,216 |
Advance deposits | 27,610 | 26,625 |
Accrued interest | 2,497 | 2,383 |
Distributions payable | 53,852 | 55,135 |
Total liabilities | 1,306,014 | 1,338,480 |
Commitments and contingencies (Note 5) | ||
Shareholders’ Equity: | ||
Preferred shares of beneficial interest, $0.01 par value (liquidation preference of $260,000), 40,000,000 shares authorized; 10,400,000 shares issued and outstanding (Note 6) | 104 | 104 |
Common shares of beneficial interest, $0.01 par value, 200,000,000 shares authorized; 113,251,427 shares issued and 110,379,395 shares outstanding, and 113,251,427 shares issued and 113,209,392 shares outstanding, respectively (Note 6) | 1,132 | 1,132 |
Treasury shares, at cost (Note 6) | (71,731) | (1,181) |
Additional paid-in capital, net of offering costs of $82,865 and $82,842, respectively | 2,765,336 | 2,767,924 |
Accumulated other comprehensive income (Note 4) | 19,072 | 10,880 |
Distributions in excess of retained earnings | (366,590) | (305,708) |
Total shareholders’ equity | 2,347,323 | 2,473,151 |
Noncontrolling Interests: | ||
Noncontrolling interests in consolidated entities | 16 | 18 |
Noncontrolling interests of common units in Operating Partnership (Note 6) | 3,236 | 3,292 |
Total noncontrolling interests | 3,252 | 3,310 |
Total equity | 2,350,575 | 2,476,461 |
Total liabilities and equity | $ 3,656,589 | $ 3,814,941 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 361 | $ 404 |
Preferred shares of beneficial interest, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred shares of beneficial interest, liquidation preference value | $ 260,000 | $ 260,000 |
Preferred shares of beneficial interest, shares authorized | 40,000,000 | 40,000,000 |
Preferred shares of beneficial interest, shares issued | 10,400,000 | 10,400,000 |
Preferred shares of beneficial interest, shares outstanding | 10,400,000 | 10,400,000 |
Common shares of beneficial interest, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common shares of beneficial interest, shares authorized | 200,000,000 | 200,000,000 |
Common shares of beneficial interest, shares issued | 113,251,427 | 113,251,427 |
Common shares of beneficial interest, shares outstanding | 110,379,395 | 113,209,392 |
Offering costs | $ 82,865 | $ 82,842 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Hotel operating revenues (Note 8): | ||
Room | $ 155,422 | $ 178,365 |
Food and beverage | 43,632 | 52,304 |
Other operating department | 20,107 | 20,367 |
Total hotel operating revenues | 219,161 | 251,036 |
Other income | 3,862 | 3,369 |
Total revenues | 223,023 | 254,405 |
Hotel operating expenses: | ||
Room | 49,186 | 52,323 |
Food and beverage | 34,816 | 39,148 |
Other direct | 2,933 | 4,184 |
Other indirect (Note 9) | 62,194 | 69,656 |
Total hotel operating expenses | 149,129 | 165,311 |
Depreciation and amortization | 45,315 | 47,263 |
Real estate taxes, personal property taxes and insurance | 16,028 | 16,115 |
Ground rent (Note 5) | 3,829 | 3,385 |
General and administrative | 6,516 | 6,554 |
Costs related to unsolicited takeover offer | 2,651 | 0 |
Other expenses | 1,220 | 1,918 |
Total operating expenses | 224,688 | 240,546 |
Operating (loss) income | (1,665) | 13,859 |
Interest income | 834 | 142 |
Interest expense | (10,160) | (9,827) |
Loss from extinguishment of debt (Note 4) | 0 | (1,706) |
(Loss) income before income tax benefit | (10,991) | 2,468 |
Income tax benefit (Note 10) | 4,027 | 4,773 |
(Loss) income before gain on sale of properties | (6,964) | 7,241 |
Gain on sale of properties (Note 3) | 0 | 74,358 |
Net (loss) income | (6,964) | 81,599 |
Noncontrolling interests of common units in Operating Partnership (Note 6) | 2 | (110) |
Net (loss) income attributable to the Company | (6,962) | 81,489 |
Distributions to preferred shareholders | (4,116) | (5,405) |
Net (loss) income attributable to common shareholders | $ (11,078) | $ 76,084 |
Earnings per Common Share - Basic (Note 12): | ||
Net (loss) income attributable to common shareholders excluding amounts attributable to unvested restricted shares (in dollars per share) | $ (0.10) | $ 0.67 |
Earnings per Common Share - Diluted (Note 12): | ||
Net (loss) income attributable to common shareholders excluding amounts attributable to unvested restricted shares (in dollars per share) | $ (0.10) | $ 0.67 |
Weighted average number of common shares outstanding: | ||
Basic (in shares) | 112,163,674 | 112,923,719 |
Diluted (in shares) | 112,163,674 | 113,306,209 |
Comprehensive Income: | ||
Net (loss) income | $ (6,964) | $ 81,599 |
Other comprehensive income: | ||
Unrealized gain on interest rate derivative instruments (Note 4) | 8,209 | 1,124 |
Reclassification adjustment for amounts recognized in net (loss) income (Note 4) | (6) | 985 |
Comprehensive income | 1,239 | 83,708 |
Noncontrolling interests of common units in Operating Partnership (Note 6) | (9) | (112) |
Comprehensive income attributable to the Company | $ 1,230 | $ 83,596 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Total Shareholders' Equity | Preferred Shares of Beneficial Interest | Common Shares of Beneficial Interest | Treasury Shares | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Distributions in Excess of Retained Earnings | Total Noncontrolling Interests | Noncontrolling Interests in Consolidated Entities | Noncontrolling Interests of Common Units in Operating Partnership |
Balance, Beginning at Dec. 31, 2016 | $ 2,561,359 | $ 2,558,065 | $ 132 | $ 1,131 | $ (739) | $ 2,830,740 | $ 2,365 | $ (275,564) | $ 3,294 | $ 17 | $ 3,277 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Issuance of shares, net of offering costs | 1,240 | 1,240 | 2,397 | (1,157) | |||||||
Repurchase of common shares into treasury | (2,223) | (2,223) | (2,223) | ||||||||
Deferred compensation, net | 1,707 | 1,707 | 1 | 565 | 1,141 | ||||||
Distributions on earned shares from share awards with market conditions | (190) | (190) | (190) | ||||||||
Distributions on common shares/units (in dollars per share) ($0.45 per share/unit) | (51,055) | (50,990) | (50,990) | (65) | (65) | ||||||
Distributions on preferred shares | (5,405) | (5,405) | (5,405) | ||||||||
Net income (loss) | 81,599 | 81,489 | 81,489 | 110 | 110 | ||||||
Other comprehensive income: | |||||||||||
Unrealized gain on interest rate derivative instruments | 1,124 | 1,123 | 1,123 | 1 | 1 | ||||||
Reclassification adjustment for amounts recognized in net income (loss) | 985 | 984 | 984 | 1 | 1 | ||||||
Balance, Ending at Mar. 31, 2017 | 2,589,141 | 2,585,800 | 132 | 1,132 | 0 | 2,830,724 | 4,472 | (250,660) | 3,341 | 17 | 3,324 |
Balance, Beginning at Dec. 31, 2017 | 2,476,461 | 2,473,151 | 104 | 1,132 | (1,181) | 2,767,924 | 10,880 | (305,708) | 3,310 | 18 | 3,292 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Issuance of shares, net of offering costs | 534 | 534 | 999 | (465) | |||||||
Repurchase of common shares into treasury | (75,370) | (75,370) | (75,370) | ||||||||
Deferred compensation, net | 1,698 | 1,698 | 3,821 | (2,123) | |||||||
Distributions on earned shares from share awards with market conditions | (87) | (87) | (87) | ||||||||
Distributions on common shares/units (in dollars per share) ($0.45 per share/unit) | (49,782) | (49,717) | (49,717) | (65) | (65) | ||||||
Distributions on preferred shares | (4,118) | (4,116) | (4,116) | (2) | (2) | ||||||
Net income (loss) | (6,964) | (6,962) | (6,962) | (2) | (2) | ||||||
Other comprehensive income: | |||||||||||
Unrealized gain on interest rate derivative instruments | 8,209 | 8,198 | 8,198 | 11 | 11 | ||||||
Reclassification adjustment for amounts recognized in net income (loss) | (6) | (6) | (6) | ||||||||
Balance, Ending at Mar. 31, 2018 | $ 2,350,575 | $ 2,347,323 | $ 104 | $ 1,132 | $ (71,731) | $ 2,765,336 | $ 19,072 | $ (366,590) | $ 3,252 | $ 16 | $ 3,236 |
Consolidated Statements of Equ6
Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Distributions on common shares/units (in dollars per share) | $ 0.45 | $ 0.45 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (6,964) | $ 81,599 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation and amortization | 45,315 | 47,263 |
Amortization of debt issuance costs | 672 | 765 |
Loss from extinguishment of debt | 0 | 1,706 |
Gain on sale of properties | 0 | (74,358) |
Amortization of deferred compensation | 1,698 | 1,707 |
Deferred income tax benefit | (3,746) | (5,090) |
Allowance for doubtful accounts | (43) | 17 |
Other | 156 | 361 |
Business interruption insurance proceeds | 135 | 45 |
Changes in assets and liabilities: | ||
Assets held for sale | 0 | (2,765) |
Hotel receivables | 5,084 | (880) |
Prepaid expenses and other assets | (7,526) | (7,127) |
Accounts payable and accrued expenses | 3,680 | 2,288 |
Advance deposits | 985 | 2,649 |
Accrued interest | 114 | (80) |
Net cash provided by operating activities | 39,560 | 48,100 |
Cash flows from investing activities: | ||
Additions to properties | (38,448) | (12,674) |
Improvements to properties | (403) | 0 |
Purchase of office furniture and equipment | (44) | 0 |
Proceeds from sale of properties | 0 | 251,960 |
Insurance proceeds received for damage of property | 365 | 238 |
Net cash (used in) provided by investing activities | (38,530) | 239,524 |
Cash flows from financing activities: | ||
Repayment of bonds payable | (42,500) | 0 |
Payment of debt issuance costs | (8) | (4,510) |
Purchase of treasury shares | (75,370) | (2,223) |
Distributions on earned shares from share awards with market conditions | (87) | (190) |
Distributions on preferred shares | (4,118) | (5,405) |
Distributions on common shares/units | (51,020) | (50,955) |
Net cash used in financing activities | (173,103) | (63,283) |
Net change in cash and cash equivalents and restricted cash reserves | (172,073) | 224,341 |
Cash and cash equivalents and restricted cash reserves, beginning of period | 414,929 | 149,687 |
Cash and cash equivalents and restricted cash reserves, end of period | $ 242,856 | $ 374,028 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [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, is subject to taxation at normal corporate rates. As of March 31, 2018 , the Company owned interests in 41 hotels with approximately 10,450 guest rooms located in seven states and the District of Columbia. Each hotel is leased to LHL (see Note 9) 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 2018 and December 2020 . 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, 99.9% of the common units of the Operating Partnership at March 31, 2018 . The remaining 0.1% is held by limited partners who held 145,223 common units of the Operating Partnership at March 31, 2018 . See Note 6 for additional disclosures related to common units of the Operating Partnership. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
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 months ended March 31, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 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, 2017 . 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, 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 and reviewed by the Company 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 estimated revenue and expense amounts 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. Investment in Hotel Properties Upon acquisition, the Company determines the fair value of the acquired long-lived assets, assumed debt and intangible assets and liabilities. The Company’s investments in hotel properties are carried at cost and depreciated using the straight-line method over an estimated useful life of 30 to 40 years for buildings, 15 years for building improvements, the shorter of the useful life of the improvement or the term of the related tenant lease for tenant improvements, seven years for land improvements, 20 years for swimming pool assets and three to five years for furniture, fixtures and equipment. For investments subject to land and building leases that qualify as capital leases, assets are recorded at the estimated fair value of the right to use the leased property at acquisition and depreciated over the shorter of the useful lives of the assets or the term of the respective lease. Renovations and/or replacements that improve or extend the life of the asset are capitalized and depreciated over their estimated useful lives. The Company is required to make subjective assessments as to the useful lives and classification of its properties for purposes of determining the amount of depreciation expense to reflect each year with respect to those properties. These assessments have a direct impact on the Company’s net income. Should the Company change the expected useful life or classification of particular assets, it would result in a change in depreciation expense and annual net income. Revenue Recognition The Company recognizes hotel operating revenues when obligations under the terms of the contracts with hotel guests have been satisfied. Room revenue is recognized when the Company’s hotels satisfy their performance obligations of providing a hotel room. The hotel reservation defines the terms of the agreement including an agreed-upon rate and length of stay. Food and beverage services, including restaurant, outlet, and banquet and catering, are also provided by the Company’s hotels and revenue is recognized at a point in time once food and beverage has been provided. Other operating department revenue, including parking fees, spa services, daily fees and other incidental fees, is recognized at a point in time when the goods and services are provided to the customer. Payment is due at the time that goods or services are rendered or billed. For room revenue, payment is typically due and paid in full at the end of the stay with some guests prepaying for their rooms prior to the stay. For package revenue, where ancillary guest services are included with the guests’ hotel reservations in a package arrangement, the Company allocates revenue based on the stand-alone selling price for each of the components of the package. The Company presents revenue net of taxes and excludes any amounts collected on behalf of third parties. For rental income from retail leases, revenue is recognized on a straight-line basis over the lives of the retail leases and is included in other income in the consolidated statements of operations and comprehensive income (loss). The recognition of revenue from retail leases will be subject to the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), which will take effect January 1, 2019 for the Company. See “Recently Issued Accounting Pronouncements” below for further discussion of revenue recognition. Share-Based Compensation From time to time, the Company awards shares under the 2014 Equity Incentive Plan, as amended (“2014 Plan”), which has approximately six years remaining, as compensation to executives, employees and members of the Board of Trustees (see Note 7). The shares issued to executives and employees generally vest over three years. The shares issued to members of the Board of Trustees vest immediately upon issuance. The Company recognizes compensation expense for nonvested shares with service conditions or service and market conditions on a straight-line basis over the vesting period based upon the fair value of the shares on the date of issuance, adjusted for forfeitures. Compensation expense for nonvested shares with service and performance conditions is recognized based on the fair value of the estimated number of shares expected to vest, as revised throughout the vesting period, adjusted for forfeitures. The Company estimates forfeiture amounts for the first three quarters of the year and adjusts for actual forfeiture amounts at year end. The 2014 Plan replaced the 2009 Equity Incentive Plan (“2009 Plan”) in May 2014. Noncontrolling Interests The Company’s consolidated 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 noncontrolling interests 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 March 31, 2018 , 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. Variable Interest Entities The Operating Partnership is a variable interest entity. The Company’s only significant asset is its investment in the Operating Partnership, and consequently, substantially all of the Company’s assets and liabilities represent those assets and liabilities of the Operating Partnership. All of the Company’s debt is an obligation of the Operating Partnership. Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU No. 2014-09 replaced most existing revenue recognition guidance in GAAP. Given the short-term, day-to-day nature of the Company’s hotel operating revenues, the pattern of revenue recognition did not change significantly, and therefore, the adoption of this standard did not have a material impact on the Company’s consolidated financial statements. Under ASU No. 2014-09, there was a recharacterization of certain revenue streams affecting both gross and net revenue reporting due to changes in principal versus agency guidance, which presentation is deemed immaterial for the Company and did not affect net income. The Company adopted ASU No. 2014-09 on its effective date of January 1, 2018 under the cumulative effect transition method. No adjustment was recorded to the Company’s opening balance of retained earnings on January 1, 2018 as there was no impact to net income for the Company. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessees to record operating and financing leases as assets and liabilities on the balance sheet and lessors to expense costs that are not initial direct leasing costs. The standard requires either a modified retrospective or proposed cumulative effect approach. This standard will be effective for the first annual reporting period beginning after December 15, 2018. The Company anticipates adopting the standard on January 1, 2019 under the proposed cumulative effect approach. In evaluating the effect that ASU No. 2016-02 will have on its consolidated financial statements and related disclosures, the Company believes the impact will be minimal to its consolidated statements of operations and comprehensive income. The Company will recognize a lease liability and right of use asset on its consolidated balance sheets due to the change in accounting treatment of the Company ’ s operating ground leases and corporate office lease. The Company is analyzing its current lease obligations and, based on current assumptions of discount rates and lease terms, expects to record a right of use asset and a related liability between $200,000 and $240,000 on its consolidated balance sheets, which may change significantly by the date of adoption based on changes to the discount rate, lease terms and other variables. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. This standard is effective for the first annual reporting period beginning after December 15, 2017. The Company adopted this standard on January 1, 2018. As a result, the classification of certain insurance proceeds changed from investing activities to operating activities on the Company ’ s consolidated statements of cash flows. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires that amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This standard is effective for the first annual period beginning after December 15, 2017, including interim periods within those periods. The Company adopted this standard on January 1, 2018. As a result, restricted cash reserves are included with cash and cash equivalents on the Company’s consolidated statements of cash flows. The adoption did not change the presentation of the Company’s consolidated balance sheets. In February 2017, the FASB issued ASU No. 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, which clarifies the scope of asset derecognition and adds further guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with non-customers. ASU No. 2017-05 will impact the recognition of gains and losses from hotel sales. T he Company does not sell hotel properties to customers as defined by the FASB, but has historically disposed of hotel properties for cash and with no contingencies and no future involvement in the hotel operations. This standard is effective for the first annual period beginning after December 15, 2017, including interim periods within those periods. The Company adopted this standard on January 1, 2018. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which improves the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements and simplifies the application of hedge accounting. This standard will be effective for the first annual period beginning after December 15, 2018, including interim periods within those periods. Early adoption is permitted. The Company adopted this standard on January 1, 2018 and aside from minor presentation changes in its disclosure on derivative and hedging activities, it does not have a material effect on the Company’s consolidated financial statements. Reclassification Certain amounts in the 2017 financial statements have been reclassified to conform with the 2018 presentation. |
Investment in Hotel Properties
Investment in Hotel Properties | 3 Months Ended |
Mar. 31, 2018 | |
Real Estate [Abstract] | |
Investment in Hotel Properties | Investment in Hotel Properties Investment in hotel properties as of March 31, 2018 and December 31, 2017 consists of the following: March 31, 2018 December 31, 2017 Land $ 624,847 $ 624,843 Buildings and improvements 3,295,076 3,271,473 Furniture, fixtures and equipment 815,097 762,150 Investment in hotel properties, gross 4,735,020 4,658,466 Accumulated depreciation (1,437,992 ) (1,392,851 ) Investment in hotel properties, net $ 3,297,028 $ 3,265,615 As of March 31, 2018 and December 31, 2017 , buildings and improvements included capital lease assets of $147,322 and accumulated depreciation included amounts related to capital lease assets of $28,040 and $26,973 , respectively. Depreciation of the capital lease assets is included in depreciation and amortization expense in the accompanying consolidated statements of operations and comprehensive income for all periods presented. Depreciation expense was $45,154 and $47,131 for the three months ended March 31, 2018 and 2017 , respectively. Dispositions During the three months ended March 31, 2017 , the Company sold Hotel Deca, Lansdowne Resort and Alexis Hotel. These dispositions do not represent a strategic shift in the Company’s business plan or primary markets, and therefore, do not qualify as discontinued operations. The sale of each property was recorded on the full accrual method. On January 19, 2017, the Company sold Hotel Deca for $55,000 . The Company recognized a gain of $30,607 related to the sale of this property, which is included in the accompanying consolidated statements of operations and comprehensive income for the three months ended March 31, 2017 . On March 22, 2017, the Company sold Lansdowne Resort for $133,000 . The Company recognized a gain of $10,401 related to the sale of this property, which is included in the accompanying consolidated statements of operations and comprehensive income for the three months ended March 31, 2017 . On March 31, 2017, the Company sold Alexis Hotel for $71,625 . The Company recognized a gain of $33,350 related to the sale of this property, which is included in the accompanying consolidated statements of operations and comprehensive income for the three months ended March 31, 2017 . 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 March 31, 2018 2017 General and administrative $ 22,263 $ 24,591 Sales and marketing 15,896 17,944 Repairs and maintenance 8,928 9,758 Management and incentive fees 5,954 7,226 Utilities and insurance 7,164 7,843 Franchise fees 1,648 1,837 Other expenses 341 457 Total other indirect expenses $ 62,194 $ 69,656 As of March 31, 2018 , LHL leased all 41 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 Vitale San Francisco, CA 9. Park Central San Francisco San Francisco, CA 10. Serrano Hotel San Francisco, CA 11. The Marker San Francisco San Francisco, CA 12. Villa Florence San Francisco, CA 13. Chaminade Resort and Conference Center Santa Cruz, CA 14. Viceroy Santa Monica Santa Monica, CA 15. Chamberlain West Hollywood West Hollywood, CA 16. Le Montrose Suite Hotel West Hollywood, CA 17. Le Parc Suite Hotel West Hollywood, CA 18. The Grafton on Sunset West Hollywood, CA 19. Hotel George Washington, DC 20. Hotel Madera Washington, DC 21. Hotel Palomar, Washington, DC Washington, DC 22. Hotel Rouge Washington, DC 23. Mason & Rook Hotel Washington, DC 24. Sofitel Washington, DC Lafayette Square Washington, DC 25. The Donovan Washington, DC 26. The Liaison Capitol Hill Washington, DC 27. Topaz Hotel Washington, DC 28. Southernmost Beach Resort Key West Key West, FL 29. The Marker Waterfront Resort Key West, FL 30. Hotel Chicago Chicago, IL 31. Westin Michigan Avenue Chicago, IL 32. Hyatt Regency Boston Harbor Boston, MA 33. Onyx Hotel Boston, MA 34. The Liberty Hotel Boston, MA 35. Westin Copley Place Boston, MA 36. Gild Hall New York, NY 37. The Roger New York, NY 38. Park Central Hotel New York (shared lease with WestHouse Hotel New York) New York, NY 39. WestHouse Hotel New York New York, NY 40. The Heathman Hotel Portland, OR 41. Embassy Suites Philadelphia - Center City Philadelphia, PA |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Debt Summary Debt as of March 31, 2018 and December 31, 2017 consisted of the following: Balance Outstanding as of Debt Interest Maturity March 31, December 31, Credit facilities Senior unsecured credit facility Floating (a) January 2021 (a) $ 0 $ 0 LHL unsecured credit facility Floating (b) January 2021 (b) 0 0 Total borrowings under credit facilities 0 0 Term loans First Term Loan Floating/Fixed (c) January 2022 300,000 300,000 Second Term Loan Floating/Fixed (c) January 2021 555,000 555,000 Debt issuance costs, net (1,659 ) (1,805 ) Total term loans, net of unamortized debt issuance costs 853,341 853,195 Massport Bonds Hyatt Regency Boston Harbor (taxable) Floating (d) - (d) 0 5,400 Hyatt Regency Boston Harbor (tax exempt) Floating (d) - (d) 0 37,100 Debt issuance costs, net 0 (6 ) Total bonds payable, net of unamortized debt issuance costs 0 42,494 Mortgage loan Westin Copley Place Floating (e) August 2018 (e) 225,000 225,000 Debt issuance costs, net (329 ) (568 ) Total mortgage loan, net of unamortized debt issuance costs 224,671 224,432 Total debt $ 1,078,012 $ 1,120,121 (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 (as defined in the credit agreement) plus an applicable margin. There were no borrowings outstanding at March 31, 2018 and December 31, 2017 . The Company has the option, pursuant to certain terms and conditions, to extend the maturity date for two six -month extensions. (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 (as defined in the credit agreement) plus an applicable margin. There were no borrowings outstanding at March 31, 2018 and December 31, 2017 . LHL has the option, pursuant to certain terms and conditions, to extend the maturity date for two six -month extensions. (c) Term loans bear interest at floating rates equal to LIBOR plus an applicable margin. The Company entered into interest rate swaps to effectively fix the interest rates for the First Term Loan (as defined below) and the Second Term Loan (as defined below). At March 31, 2018 and December 31, 2017 , the Company had interest rate swaps on the full amounts outstanding. See “Derivative and Hedging Activities” below. At March 31, 2018 and December 31, 2017 , the fixed all-in interest rates for the First Term Loan and Second Term Loan were 3.23% and 2.95% , respectively, at the Company’s current leverage ratio (as defined in the swap agreements). (d) The Company repaid the Massport Bonds on their maturity date, March 1, 2018, with available cash. The bonds bore interest based on weekly floating rates. The interest rates as of December 31, 2017 were 1.70% and 1.78% for the $5,400 and $37,100 bonds, respectively. (e) The mortgage loan matures on August 14, 2018 with three options to extend the maturity date to January 5, 2021, pursuant to certain terms and conditions. The Company anticipates exercising all available options. The interest-only mortgage loan bears interest at a variable rate ranging from LIBOR plus 1.75% to LIBOR plus 2.00% , depending on Westin Copley Place’s net cash flow (as defined in the loan agreement). The interest rate as of March 31, 2018 was LIBOR plus 1.75% , which equaled 3.53% . The interest rate as of December 31, 2017 was LIBOR plus 1.75% , which equaled 3.23% . The mortgage loan allows for prepayments without penalty, subject to certain terms and conditions. Future scheduled debt principal payments as of March 31, 2018 (refer to previous table for extension options) are as follows: 2018 $ 225,000 2019 0 2020 0 2021 555,000 2022 300,000 Total debt $ 1,080,000 A summary of the Company’s interest expense and weighted average interest rates for unswapped variable rate debt for the three months ended March 31, 2018 and 2017 is as follows: For the three months ended March 31, 2018 2017 Interest Expense: Interest incurred $ 9,668 $ 9,140 Amortization of debt issuance costs 672 765 Capitalized interest (180 ) (78 ) Interest expense $ 10,160 $ 9,827 Weighted Average Interest Rates for Unswapped Variable Rate Debt: Senior unsecured credit facility N/A N/A LHL unsecured credit facility N/A N/A Massport Bonds (1) 1.25 % 0.70 % Mortgage loan (Westin Copley Place) 3.35 % 2.54 % (1) The Massport Bonds were repaid on March 1, 2018. Credit Facilities The Company has a $750,000 senior unsecured credit facility with a syndicate of banks. The credit facility matures on January 8, 2021, subject to two six -month extensions that the Company may exercise at its option, pursuant to certain terms and conditions, including payment of an extension fee. The credit facility, with a current commitment of $750,000 , includes an accordion feature which, subject to certain conditions, entitles the Company to request additional lender commitments, allowing for total commitments of up to $1,250,000 . 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 (as defined in the credit agreement) plus an applicable margin. Additionally, the Company is required to pay a variable unused commitment fee of 0.20% or 0.30% 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 10, 2021, subject to two six -month extensions 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 (as defined in the credit agreement) plus an applicable margin. Additionally, LHL is required to pay a variable unused commitment fee of 0.20% or 0.30% of the unused portion of the credit facility, depending on the average daily unused portion of the LHL unsecured credit facility. The Company’s senior unsecured credit facility and LHL’s unsecured credit facility contain certain financial and other covenants, including covenants relating to net worth requirements, debt ratios and fixed charge coverage ratios. In addition, pursuant to the terms of the agreements, if a default or event of default occurs or is continuing, the Company may be precluded from paying certain distributions or other payments to its shareholders. The Company and certain of its subsidiaries guarantee the obligations under the Company’s senior unsecured credit facility. While the senior unsecured credit facility did not initially include any pledges of equity interests in the Company’s subsidiaries, such pledges and additional subsidiary guarantees would be required in the event that the Company’s leverage ratio later exceeds 6.50 : 1.00 for two consecutive fiscal quarters. In the event that such pledge and guarantee requirement is triggered, the pledges and additional guarantees would ratably benefit the Company’s senior unsecured credit facility, the First Term Loan and the Second Term Loan. If at any time the Company’s leverage ratio falls below 6.50 : 1.00 for two consecutive fiscal quarters, such pledges and additional guarantees may be released. Term Loans The Company has a $300,000 unsecured term loan (the “First Term Loan”) that matures on January 10, 2022. The First Term Loan includes an accordion feature, which subject to certain conditions, entitles the Company to request additional lender commitments, allowing for total commitments of up to $500,000 . The First Term Loan bears interest at variable rates. The Company has a $555,000 unsecured term loan (the “Second Term Loan”) that matures on January 29, 2021. The Second Term Loan includes an accordion feature, which subject to certain conditions, entitles the Company to request additional lender commitments, allowing for total commitments of up to $700,000 . The Second Term Loan bears interest at variable rates. The Company has entered into interest rate swap agreements to effectively fix the LIBOR rates for the term loans (see “Derivative and Hedging Activities” below). The Company’s term loans contain certain financial and other covenants, including covenants relating to net worth requirements, debt ratios and fixed charge coverage ratios. In addition, pursuant to the terms of the agreements, if a default or event of default occurs or is continuing, the Company may be precluded from paying certain distributions or other payments to its shareholders. The Company and certain of its subsidiaries guarantee the obligations under the Company’s term loans. While the term loans did not initially include any pledges of equity interests in the Company’s subsidiaries, such pledges and additional subsidiary guarantees would be required in the event that the Company’s leverage ratio later exceeds 6.50 : 1.00 for two consecutive fiscal quarters. In the event that such pledge and guarantee requirement is triggered, the pledges and additional guarantees would ratably benefit the Company’s senior unsecured credit facility, the First Term Loan and the Second Term Loan. If at any time the Company’s leverage ratio falls below 6.50 : 1.00 for two consecutive fiscal quarters, such pledges and additional guarantees may be released. 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 of hedging instruments are reported in other comprehensive income (loss) (“OCI”). 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. As of March 31, 2018 , the Company has interest rate swap agreements with an aggregate notional amount of $300,000 to hedge the variable interest rate on the First Term Loan through January 10, 2022, 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 3.23% . As of March 31, 2018 , the Company has interest rate swaps with an aggregate notional amount of $555,000 to hedge the variable interest rate on the Second Term Loan and, as a result, the fixed all-in interest rate based on the Company’s current leverage ratio (as defined in the swap agreements) is 2.95% through May 16, 2019. From May 16, 2019 through the term of the Second Term Loan, the Company has interest rate swaps with an aggregate notional amount of $377,500 to hedge a portion of the variable interest rate debt on the Second Term Loan. The Company has designated its pay-fixed, receive-floating interest rate swap derivatives as cash flow hedges. The interest rate swaps were entered into with the intention of eliminating the variability of the terms loans, but can also limit the exposure to any amendments, supplements, replacements or refinancings of the Company’s debt. The following table presents the effect of derivative instruments on the Company’s accompanying consolidated statements of operations and comprehensive income, including the location and amount of unrealized gain on outstanding derivative instruments in cash flow hedging relationships, for the three months ended March 31, 2018 and 2017 : Amount of Gain Recognized in OCI on Derivative Instruments Location of (Gain) Loss Reclassified from AOCI into Net (Loss) Income Amount of (Gain) Loss Reclassified from AOCI into Net (Loss) Income Total Amount of Interest Expense Line Item Presented in the Statement of Operations For the three months ended For the three months ended For the three months ended March 31, March 31, March 31, 2018 2017 2018 2017 2018 2017 Derivatives in cash flow hedging relationships: Interest rate swaps $ 8,209 $ 1,124 Interest expense $ (6 ) $ 985 $ 10,160 $ 9,827 As of March 31, 2018 , there was $19,096 in cumulative unrealized gain of which $19,072 was included in AOCI and $24 was attributable to noncontrolling interests. As of December 31, 2017 , there was $10,893 in cumulative unrealized gain of which $10,880 was included in AOCI and $13 was attributable to noncontrolling interests. The Company expects that approximately $1,314 will be reclassified from AOCI and noncontrolling interests and recognized as an increase to income in the next 12 months , calculated as estimated interest expense using the interest rates on the derivative instruments as of March 31, 2018 . Extinguishment of Debt On January 10, 2017, the Company refinanced its senior unsecured credit facility and First Term Loan and LHL refinanced its unsecured revolving credit facility. The refinancing arrangements for the senior unsecured credit facility and First Term Loan were considered substantial modifications. The Company recognized a loss from extinguishment of debt of $1,706 , which is included in the accompanying consolidated statements of operations and comprehensive income for the three months ended March 31, 2017 . The loss from extinguishment of debt represents a portion of the unamortized debt issuance costs incurred for the senior unsecured credit facility when the original agreement was executed and the debt issuance costs incurred in connection with the refinancing of the First Term Loan. Mortgage Loan The Company’s mortgage loan is secured by the property. The mortgage is non-recourse to the Company except for fraud or misapplication of funds. The Company’s mortgage loan contains debt service coverage ratio tests related to the mortgaged property. If the debt service coverage ratio for the 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 of the Company to comply with financial and other covenants contained in its credit facilities, term loans and non-recourse secured mortgage could result from, among other things, changes in its results of operations, the incurrence of additional debt or changes in general economic conditions. If the Company violates financial and other 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 March 31, 2018 , 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 and mortgage loan. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Ground, Land and Building, and Air Rights Leases A summary of the Company’s hotels subject to non-cancelable operating leases as of March 31, 2018 is as follows: Lease Properties Lease Type Lease Expiration Date Southernmost Beach Resort Key West (Restaurant facility) Ground lease April 2019 (1) Hyatt Regency Boston Harbor Ground lease April 2077 The Hilton San Diego Resort and Spa Ground lease December 2045 San Diego Paradise Point Resort and Spa Ground lease May 2050 Hotel Vitale Ground lease March 2056 (2) Viceroy Santa Monica Ground lease September 2065 Westin Copley Place (3) Air rights lease December 2077 The Liberty Hotel Ground lease May 2080 Hotel Solamar Ground lease December 2102 (1) The Company can begin negotiating a renewal one year in advance of the lease expiration date. (2) The Company has the option, subject to certain terms and conditions, to extend the ground lease for 14 years to 2070. (3) No payments are required through maturity. The ground leases at Viceroy Santa Monica, The Liberty Hotel and Hotel Vitale are subject to minimum annual rent increases, resulting in noncash straight-line rent expense of $454 and $465 for the three months ended March 31, 2018 and 2017 , respectively, which is included in total ground rent expense. Total ground rent expense, which is included in the accompanying consolidated statements of operations and comprehensive income, for the three months ended March 31, 2018 and 2017 was $3,829 and $3,385 , 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. A summary of the Company’s hotels subject to capital leases of land and building as of March 31, 2018 is as follows: Lease Properties Estimated Present Value of Remaining Rent Payments (1) Lease Expiration Date The Roger $ 4,892 December 2044 Harbor Court Hotel $ 18,603 August 2052 (1) At acquisition or as amended, the estimated present value of the remaining rent payments was recorded as capital lease obligations. These obligations, net of amortization, are included in accounts payable and accrued expenses in the accompanying consolidated balance sheets. Actual base and participating ground rent payments related to The Roger and Harbor Court Hotel were $99 and $235 for the three months ended March 31, 2018 , respectively, and $99 and $288 for the three months ended March 31, 2017 , respectively. As of March 31, 2018 , future minimum rent payments, including capital lease payments, (without reflecting future applicable Consumer Price Index increases) are as follows: 2018 $ 8,518 2019 11,282 2020 11,586 2021 11,682 2022 11,747 Thereafter 513,389 $ 568,204 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% of hotel revenues, sufficient to cover the cost of (i) certain non-routine repairs and maintenance to the hotels and (ii) replacements and renewals to the hotels’ capital assets. Certain of the agreements require that the Company reserve this cash in separate accounts. As of March 31, 2018 , $12,141 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 March 31, 2018 , the Company held $13,871 in restricted cash reserves. Included in such amounts are $12,141 of reserve funds for future capital expenditures and $1,730 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 ordinary course of 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 | 3 Months Ended |
Mar. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Equity | Equity Common Shares of Beneficial Interest On January 1, 2018, the Company issued 19,125 common shares and authorized an additional 5,832 deferred shares to the independent members of its Board of Trustees for their 2017 compensation. These common shares were issued under the 2014 Plan. On March 2, 2018, the Company issued 16,410 common shares to executives related to the nonvested share awards with either market or performance conditions granted on March 19, 2015 (see Note 7 for additional details, including vesting information). These common shares were issued under the 2014 Plan. On March 21, 2018, the Company issued 148,591 nonvested shares with service conditions to the Company’s executives and employees. The nonvested shares will vest in three annual installments starting January 1, 2019, subject to continued employment. These common shares were issued under the 2014 Plan. Common Dividends The Company paid the following dividends on common shares/units during the three months ended March 31, 2018 : Dividend per For the Quarter Ended Record Date Date Paid $ 0.45 December 31, 2017 December 29, 2017 January 16, 2018 Treasury Shares Treasury shares are accounted for under the cost method. During the three months ended March 31, 2018 , the Company received 31,323 common shares related to employees surrendering shares to pay minimum withholding taxes on the vesting date. The Company’s Board of Trustees has authorized an expanded share repurchase program (the “Repurchase Program”) to acquire up to $600,000 of the Company’s common shares, with repurchased shares recorded at cost in treasury. During the three months ended March 31, 2018 , the Company repurchased 2,982,800 common shares under the Repurchase Program for a total of $74,515 , including commissions of $60 . As of March 31, 2018 , the Company has availability under the Repurchase Program to acquire up to $495,351 of common shares. The timing, manner, price and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, market conditions, and other corporate liquidity requirements and priorities. The Repurchase Program may be suspended, modified or terminated at any time for any reason without prior notice. The Repurchase Program does not obligate the Company to acquire any specific number of shares, and all open market repurchases will be made in accordance with applicable rules and regulations setting forth certain restrictions on the method, timing, price and volume of open market share repurchases. During the three months ended March 31, 2018 , the Company re-issued 19,125 treasury shares related to earned 2017 compensation for the Board of Trustees, 16,410 treasury shares related to the earned share awards with either market or performance conditions and 148,591 treasury shares related to the grants of nonvested shares with service conditions. At March 31, 2018 , there were 2,872,032 common shares in treasury. Preferred Shares The following preferred shares of beneficial interest were outstanding as of March 31, 2018 : Security Type Number of 6.375% Series I Preferred Shares 4,400,000 6.3% Series J Preferred Shares 6,000,000 The 6.375% Series I Cumulative Redeemable Preferred Shares (the “Series I Preferred Shares”) and the 6.3% Series J Cumulative Redeemable Preferred Shares (the “Series J Preferred Shares”) (collectively, the “Preferred Shares”) rank senior to the common shares 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 unless it has also paid (or set aside for payment) the full cumulative distributions on the Preferred Shares for 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 is the offering costs. In addition, the Company is not required to set aside funds to redeem the Preferred Shares. As of March 4, 2018, the Company may optionally redeem the 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 redemption date. The Company may not optionally redeem the Series J Preferred Shares prior to May 25, 2021, except in limited circumstances relating to the Company’s continuing qualification as a REIT or as discussed below. After May 25, 2021, the Company may, at its option, redeem the Series J 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, but not including, the redemption date. In addition, upon the occurrence of a change of control (as defined in the Company’s declaration of trust), the result of which the Company’s common shares and the common securities of the acquiring or surviving entity are not listed on the New York Stock Exchange, the NYSE American LLC or the NASDAQ Stock Market, or any successor exchanges, the Company may, at its option, redeem the Series J 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, but not including, the redemption date. If the Company does not exercise its right to redeem the Preferred Shares upon such a change of control, the holders of Series I Preferred Shares and Series J Preferred Shares have the right to convert some or all of their shares into a number of the Company’s common shares based on a defined formula, subject to a cap of 8,835,200 common shares and 12,842,400 common shares, respectively. Preferred Dividends The Company paid the following dividends on preferred shares during the three months ended March 31, 2018 : Security Type Dividend per Share (1) For the Quarter Ended Record Date Date Paid 6.375% Series I $ 0.40 December 31, 2017 December 29, 2017 January 16, 2018 6.3% Series J $ 0.39 December 31, 2017 December 29, 2017 January 16, 2018 (1) Amounts are rounded to the nearest whole cent for presentation purposes. Noncontrolling Interests of Common Units in Operating Partnership As of March 31, 2018 , the Operating Partnership had 145,223 common units of limited partnership interest outstanding, representing a 0.1% partnership interest, held by the limited partners. As of March 31, 2018 , approximately $4,213 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 $4,213 is based on the Company’s closing common share price of $29.01 on March 31, 2018 , which is assumed to be equal to the value provided to the limited partners upon liquidation of the Operating Partnership. Subject to certain limitations, the outstanding common units of limited partnership interest are redeemable for cash, or at the Company’s option, for a like number of common shares of the Company. |
Equity Incentive Plan
Equity Incentive Plan | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity Incentive Plan | Equity Incentive Plan The 2014 Plan 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 2014 Plan provides for a maximum of 2,900,000 common shares to be issued in the form of share options, share appreciation rights, restricted or unrestricted share awards, phantom shares, performance awards, incentive awards, other share-based awards, or any combination of the foregoing. In addition, the maximum number of common shares subject to awards of any combination that may be granted under the 2014 Plan during any fiscal year to any one individual is limited to 500,000 shares. The 2014 Plan terminates on February 17, 2024. The 2014 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 2014 Plan vest over a period determined by the Compensation Committee of the Board of Trustees, generally a three year period. The duration of each option is also determined by the Compensation Committee, subject to applicable laws and regulations. At March 31, 2018 , there were 2,325,873 common shares available for future grant under the 2014 Plan. The 2014 Plan replaced the 2009 Plan. The Company will no longer make any grants under the 2009 Plan (although awards previously made under the 2009 Plan that are outstanding will remain in effect in accordance with the terms of that plan and the applicable award agreements). Nonvested Share Awards with Service Conditions From time to time, the Company awards nonvested shares under the 2014 Plan to executives, employees and members of the Board of Trustees. The nonvested shares issued to executives and employees generally vest over three years based on continued employment. The shares issued to the members of the Board of Trustees vest immediately upon issuance. The Company determines the grant date fair value of the nonvested shares based upon the closing price of its common shares on the New York Stock Exchange on the date of grant and number of shares per the award agreements. Compensation costs are recognized on a straight-line basis over the requisite service 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 nonvested share awards with service conditions as of March 31, 2018 is as follows: Number of Weighted - Nonvested at January 1, 2018 170,414 $ 28.95 Granted 148,591 25.46 Vested (55,380 ) 31.08 Forfeited 0 0.00 Nonvested at March 31, 2018 263,625 $ 26.53 As of March 31, 2018 and December 31, 2017 , there were $6,182 and $3,214 , respectively, of total unrecognized compensation costs related to nonvested share awards with service conditions. As of March 31, 2018 and December 31, 2017 , these costs were expected to be recognized over a weighted-average period of 1.6 years and 1.4 years, respectively. The total intrinsic value of shares vested (calculated as number of shares multiplied by vesting date share price) during the three months ended March 31, 2018 and 2017 was $1,555 and $2,681 , respectively. Compensation costs (net of forfeitures) related to nonvested share awards with service conditions that have been included in general and administrative expense in the accompanying consolidated statements of operations and comprehensive income were $800 and $848 for the three months ended March 31, 2018 and 2017 , respectively. Nonvested Share Awards with Market or Performance Conditions On March 19, 2015, the Company’s Board of Trustees granted a target of 49,225 nonvested share awards, exclusive of the 12,435 shares granted to the former Chief Financial Officer, with either market or performance conditions to executives (the “March 19, 2015 Awards”). On March 2, 2018, the executives earned 66.7% of the 24,612 target number of shares with a performance period through December 31, 2017, or 16,410 shares, and all of the earned shares vested immediately. The portion of the share awards representing the difference between 66.7% and 100% of the target number of shares, or 8,202 shares, was forfeited on March 2, 2018. The executives also received a cash payment of $87 on the earned shares equal to the value of all dividends paid on common shares from January 1, 2015 until the determination date, March 2, 2018. As of March 3, 2018, the executives are entitled to receive dividends as declared and paid on the earned shares and to vote the shares. The actual number of shares earned with respect to the remaining 24,613 of the 49,225 target number of shares with a performance period from July 1, 2015 through June 30, 2018 will be determined during the latter half of the third quarter 2018, in accordance with the terms of the award agreements. The actual number of shares awarded will range from 0% to 200% of the target amounts, depending on the performance analysis stipulated in the award agreements, and none of the shares are outstanding until issued in accordance with award agreements based on performance. After the actual number of shares are determined (or earned) at the end of the performance measurement period, all of the earned shares will be issued and outstanding on the date. 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 determination date. Such amounts will be paid to the awardees during the latter half of the third quarter 2018. Thereafter, the executives will be entitled to receive dividends as declared and paid on the earned shares and to vote the shares. With respect to 24,612 shares, amortization commenced on March 19, 2015, the beginning of the requisite service period, and, with respect to 24,613 shares, amortization commenced on July 1, 2015, the beginning of the requisite service period. On March 21, 2018, the Company’s Board of Trustees granted a target of 152,024 nonvested share awards with either market or performance conditions to executives (the “March 21, 2018 Awards”). The actual number of shares awarded with respect to 76,013 of the 152,024 target number of shares will be determined during the latter half of the first quarter 2021, based on the performance measurement period of January 1, 2018 through December 31, 2020, in accordance with the terms of the agreements. The actual number of shares awarded with respect to the remaining 76,011 of the 152,024 shares will be determined during the latter half of the third quarter 2021, based on the performance measurement period of July 1, 2018 through June 30, 2021, in accordance with the terms of the agreements. The actual number of shares awarded will range from 0% to 200% of the target amounts, depending on the performance analysis stipulated in the agreements, and none of the shares are outstanding until issued in accordance with award agreements based on performance. After the actual number of shares 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 during the latter half of the first quarter 2021 and during the latter half of the third quarter 2021, respectively. Thereafter, the executives will be entitled to receive dividends as declared and paid on the earned shares and to vote the shares. With respect to 76,013 shares, amortization commenced on March 21, 2018, the beginning of the requisite service period, and, with respect to 76,011 shares, amortization will commence on July 1, 2018, the beginning of the requisite service period. The terms stipulated in the March 21, 2018 Awards used to determine the total number of shares consist of the following three tranches: (1) a comparison of the Company’s total return to the total returns’ of up to 10 companies in a designated peer group of the Company, (2) the Company’s actual total return as compared to a Board-established total return goal and (3) a comparison of the Company’s return on invested capital to the return on invested capital of up to 10 companies in a designated peer group of the Company. The tranches described in (1) and (2) are nonvested share awards with market conditions. For the March 21, 2018 Awards, the grant date fair value of the awards with market conditions were estimated by the Company using historical data under the Monte Carlo valuation method provided by a third party consultant. The final values will be determined during the second quarter of 2018 with an insignificant cumulative adjustment to compensation cost anticipated. The third tranche is based on “return on invested capital” discussed below, which is a performance condition. The grant date fair values of the tranches with performance conditions were calculated based on the targeted awards, and the valuation is adjusted on a periodic basis. 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 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. A summary of the Company’s nonvested share awards with either market or performance conditions as of March 31, 2018 is as follows: Share Awards (Target Number of Shares) Weighted- Average Grant Date Fair Value Nonvested at January 1, 2018 263,948 $ 27.04 Granted 152,024 25.46 Vested (16,410 ) 36.26 Forfeited (8,202 ) 36.26 Nonvested at March 31, 2018 391,360 $ 26.05 As of March 31, 2018 and December 31, 2017 , there were $7,913 and $4,941 , respectively, of total unrecognized compensation costs related to nonvested share awards with market or performance conditions. As of March 31, 2018 and December 31, 2017 , these costs were expected to be recognized over a weighted-average period of 2.4 years and 2.0 years, respectively. As of March 31, 2018 and December 31, 2017 , there were 626,177 and 609,767 share awards with market or performance conditions vested, respectively. Compensation costs (net of forfeitures) related to nonvested share awards with market or performance conditions that have been included in general and administrative expense in the accompanying consolidated statements of operations and comprehensive income were $898 and $860 for the three months ended March 31, 2018 and 2017 , respectively. |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2018 | |
Disaggregation of Revenue [Abstract] | |
Revenues | Revenues The following tables set forth the Company’s disaggregated hotel operating revenues by the geographic location of its hotels for the three months ended March 31, 2018 and 2017 : For the three months ended March 31, 2018 Room Food and beverage Other operating department Total hotel operating revenues Boston $ 20,256 $ 9,624 $ 2,459 $ 32,339 Chicago 8,010 2,234 827 $ 11,071 Key West 11,421 2,685 1,336 $ 15,442 Los Angeles 14,983 2,383 1,539 $ 18,905 New York 16,254 1,215 3,663 $ 21,132 San Diego Downtown 8,595 1,867 660 $ 11,122 San Francisco 32,927 5,398 3,406 $ 41,731 Washington, DC 23,038 5,796 1,987 $ 30,821 Other (1) 19,938 12,430 4,230 $ 36,598 $ 155,422 $ 43,632 $ 20,107 $ 219,161 (1) For the three months ended March 31, 2018 , other includes Chaminade Resort and Conference Center in Santa Cruz, CA, Embassy Suites Philadelphia - Center City in Philadelphia, PA, L’Auberge Del Mar in Del Mar, CA, San Diego Paradise Point Resort and Spa and The Hilton San Diego Resort and Spa in San Diego, CA and The Heathman Hotel in Portland, OR. For the three months ended March 31, 2017 Room Food and beverage Other operating department Total hotel operating revenues Boston $ 21,753 $ 10,448 $ 2,194 $ 34,395 Chicago 7,790 2,277 1,039 $ 11,106 Key West 12,635 2,643 1,283 $ 16,561 Los Angeles 16,289 2,616 1,154 $ 20,059 New York 15,776 1,220 3,015 $ 20,011 San Diego Downtown 8,924 1,895 651 $ 11,470 San Francisco (1) 37,002 6,099 2,957 $ 46,058 Washington, DC 30,896 7,115 1,857 $ 39,868 Other (2) 27,300 17,991 6,217 $ 51,508 $ 178,365 $ 52,304 $ 20,367 $ 251,036 (1) Includes Hotel Triton which was sold on April 11, 2017. (2) For the three months ended March 31, 2017 , other includes Alexis Hotel (sold on March 31, 2017) and Hotel Deca (sold on January 19, 2017) in Seattle, WA, Chaminade Resort and Conference Center in Santa Cruz, CA, Embassy Suites Philadelphia - Center City and Westin Philadelphia (sold on June 29, 2017) in Philadelphia, PA, Lansdowne Resort (sold on March 22, 2017) in Lansdowne, VA , L’Auberge Del Mar in Del Mar, CA, San Diego Paradise Point Resort and Spa and The Hilton San Diego Resort and Spa in San Diego, CA and The Heathman Hotel in Portland, OR. The Company’s contract liabilities primarily relate to advance deposits received from guests and groups for future stays or events to be held at the hotels. The contract liabilities are transferred to revenue as room nights are provided and events are held. For the three months ended March 31, 2018 and 2017 , the Company recognized $17,975 and $21,950 , respectively, in revenue from the contract liabilities balance at the beginning of the year and expects the remaining contract liabilities to be recognized, generally, over the next 12 months. |
LHL
LHL | 3 Months Ended |
Mar. 31, 2018 | |
Real Estate Investment Trust, Operating Support [Abstract] | |
LHL | Investment in Hotel Properties Investment in hotel properties as of March 31, 2018 and December 31, 2017 consists of the following: March 31, 2018 December 31, 2017 Land $ 624,847 $ 624,843 Buildings and improvements 3,295,076 3,271,473 Furniture, fixtures and equipment 815,097 762,150 Investment in hotel properties, gross 4,735,020 4,658,466 Accumulated depreciation (1,437,992 ) (1,392,851 ) Investment in hotel properties, net $ 3,297,028 $ 3,265,615 As of March 31, 2018 and December 31, 2017 , buildings and improvements included capital lease assets of $147,322 and accumulated depreciation included amounts related to capital lease assets of $28,040 and $26,973 , respectively. Depreciation of the capital lease assets is included in depreciation and amortization expense in the accompanying consolidated statements of operations and comprehensive income for all periods presented. Depreciation expense was $45,154 and $47,131 for the three months ended March 31, 2018 and 2017 , respectively. Dispositions During the three months ended March 31, 2017 , the Company sold Hotel Deca, Lansdowne Resort and Alexis Hotel. These dispositions do not represent a strategic shift in the Company’s business plan or primary markets, and therefore, do not qualify as discontinued operations. The sale of each property was recorded on the full accrual method. On January 19, 2017, the Company sold Hotel Deca for $55,000 . The Company recognized a gain of $30,607 related to the sale of this property, which is included in the accompanying consolidated statements of operations and comprehensive income for the three months ended March 31, 2017 . On March 22, 2017, the Company sold Lansdowne Resort for $133,000 . The Company recognized a gain of $10,401 related to the sale of this property, which is included in the accompanying consolidated statements of operations and comprehensive income for the three months ended March 31, 2017 . On March 31, 2017, the Company sold Alexis Hotel for $71,625 . The Company recognized a gain of $33,350 related to the sale of this property, which is included in the accompanying consolidated statements of operations and comprehensive income for the three months ended March 31, 2017 . 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 March 31, 2018 2017 General and administrative $ 22,263 $ 24,591 Sales and marketing 15,896 17,944 Repairs and maintenance 8,928 9,758 Management and incentive fees 5,954 7,226 Utilities and insurance 7,164 7,843 Franchise fees 1,648 1,837 Other expenses 341 457 Total other indirect expenses $ 62,194 $ 69,656 As of March 31, 2018 , LHL leased all 41 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 Vitale San Francisco, CA 9. Park Central San Francisco San Francisco, CA 10. Serrano Hotel San Francisco, CA 11. The Marker San Francisco San Francisco, CA 12. Villa Florence San Francisco, CA 13. Chaminade Resort and Conference Center Santa Cruz, CA 14. Viceroy Santa Monica Santa Monica, CA 15. Chamberlain West Hollywood West Hollywood, CA 16. Le Montrose Suite Hotel West Hollywood, CA 17. Le Parc Suite Hotel West Hollywood, CA 18. The Grafton on Sunset West Hollywood, CA 19. Hotel George Washington, DC 20. Hotel Madera Washington, DC 21. Hotel Palomar, Washington, DC Washington, DC 22. Hotel Rouge Washington, DC 23. Mason & Rook Hotel Washington, DC 24. Sofitel Washington, DC Lafayette Square Washington, DC 25. The Donovan Washington, DC 26. The Liaison Capitol Hill Washington, DC 27. Topaz Hotel Washington, DC 28. Southernmost Beach Resort Key West Key West, FL 29. The Marker Waterfront Resort Key West, FL 30. Hotel Chicago Chicago, IL 31. Westin Michigan Avenue Chicago, IL 32. Hyatt Regency Boston Harbor Boston, MA 33. Onyx Hotel Boston, MA 34. The Liberty Hotel Boston, MA 35. Westin Copley Place Boston, MA 36. Gild Hall New York, NY 37. The Roger New York, NY 38. Park Central Hotel New York (shared lease with WestHouse Hotel New York) New York, NY 39. WestHouse Hotel New York New York, NY 40. The Heathman Hotel Portland, OR 41. Embassy Suites Philadelphia - Center City Philadelphia, PA |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax benefit was comprised of the following for the three months ended March 31, 2018 and 2017 : For the three months ended March 31, 2018 2017 LHL’s income tax benefit $ (4,196 ) $ (5,071 ) Operating Partnership’s income tax expense 169 298 Total income tax benefit $ (4,027 ) $ (4,773 ) The Company has estimated LHL’s income tax benefit for the three months ended March 31, 2018 by applying an estimated combined federal and state effective tax rate of 29.5% to LHL’s net loss of $14,245 . 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 | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 December 31, 2017 Using Significant Other Observable Inputs (Level 2) Description Consolidated Balance Sheet Location Derivative interest rate instruments Prepaid expenses and other assets $ 19,096 $ 10,893 Derivative interest rate instruments Accounts payable and accrued expenses $ 0 $ 0 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 are 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 March 31, 2018 and December 31, 2017 : March 31, 2018 December 31, 2017 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Borrowings under credit facilities $ 0 $ 0 $ 0 $ 0 Term loans $ 855,000 $ 857,479 $ 855,000 $ 857,577 Bonds payable $ 0 $ 0 $ 42,500 $ 42,500 Mortgage loan $ 225,000 $ 224,707 $ 225,000 $ 224,429 The Company estimated the fair value of its borrowings under credit facilities, term loans, bonds payable and mortgage loan using interest rates ranging from 1.4% to 2.3% as of March 31, 2018 and December 31, 2017 with a weighted average effective interest rate of 1.6% . The assumptions reflect the terms currently available on similar borrowings to borrowers with credit profiles similar to the Company’s. At March 31, 2018 and December 31, 2017 , the carrying amounts of certain of the Company’s financial instruments, including cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses and distributions payable 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 | 3 Months Ended |
Mar. 31, 2018 | |
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 ) 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 payment awards expected to vest 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. For the three months ended March 31, 2018, diluted weighted average common shares do not include the impact of outstanding unvested compensation-related shares because the Company is in a net loss position, the effect of these items on diluted earnings per share would be anti-dilutive. For the three months ended March 31, 2018, there were 405,637 anti-dilutive compensation-related shares outstanding. The computation of basic and diluted earnings per common share is as follows: For the three months ended March 31, 2018 2017 Numerator: Net (loss) income attributable to common shareholders $ (11,078 ) $ 76,084 Dividends paid on unvested restricted shares (119 ) (122 ) Undistributed earnings attributable to unvested restricted shares 0 (37 ) Net (loss) income attributable to common shareholders excluding amounts attributable to unvested restricted shares $ (11,197 ) $ 75,925 Denominator: Weighted average number of common shares - basic 112,163,674 112,923,719 Effect of dilutive securities: Compensation-related shares 0 382,490 Weighted average number of common shares - diluted 112,163,674 113,306,209 Earnings per Common Share - Basic: Net (loss) income attributable to common shareholders excluding amounts attributable to unvested restricted shares $ (0.10 ) $ 0.67 Earnings per Common Share - Diluted: Net (loss) income attributable to common shareholders excluding amounts attributable to unvested restricted shares $ (0.10 ) $ 0.67 |
Supplemental Information to Sta
Supplemental Information to Statements of Cash Flows | 3 Months Ended |
Mar. 31, 2018 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Information to Statements of Cash Flows | Supplemental Information to Statements of Cash Flows For the three months ended March 31, 2018 2017 Interest paid, net of capitalized interest $ 9,374 $ 9,142 Interest capitalized 180 78 Income taxes refunded, net (3,227 ) (57 ) (Decrease) increase in distributions payable on common shares (1,283 ) 59 Write-off of fully amortized debt issuance costs 669 5,057 Increase in accrued capital expenditures 6,605 433 Grant of nonvested shares and awards to employees and executives, net 7,653 7,180 Issuance of common shares for Board of Trustees compensation 557 1,240 In conjunction with the sale of properties, the Company disposed of the following assets and liabilities: Sale proceeds, net of closing costs $ 0 $ 252,407 Other assets 0 5,803 Liabilities 0 (6,250 ) Proceeds from sale of properties $ 0 $ 251,960 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company paid the following common and preferred dividends subsequent to March 31, 2018 : Security Type Dividend per Share/Unit (1) For the Quarter Ended Record Date Date Paid Common Shares/Units $ 0.45 March 31, 2018 March 29, 2018 April 16, 2018 6.375% Series I Preferred Shares $ 0.40 March 31, 2018 March 29, 2018 April 16, 2018 6.3% Series J Preferred Shares $ 0.39 March 31, 2018 March 29, 2018 April 16, 2018 (1) Amounts are rounded to the nearest whole cent for presentation purposes. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policy) | 3 Months Ended |
Mar. 31, 2018 | |
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, 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 and reviewed by the Company 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 estimated revenue and expense amounts 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. |
Investment in Hotel Properties | Investment in Hotel Properties Upon acquisition, the Company determines the fair value of the acquired long-lived assets, assumed debt and intangible assets and liabilities. The Company’s investments in hotel properties are carried at cost and depreciated using the straight-line method over an estimated useful life of 30 to 40 years for buildings, 15 years for building improvements, the shorter of the useful life of the improvement or the term of the related tenant lease for tenant improvements, seven years for land improvements, 20 years for swimming pool assets and three to five years for furniture, fixtures and equipment. For investments subject to land and building leases that qualify as capital leases, assets are recorded at the estimated fair value of the right to use the leased property at acquisition and depreciated over the shorter of the useful lives of the assets or the term of the respective lease. Renovations and/or replacements that improve or extend the life of the asset are capitalized and depreciated over their estimated useful lives. The Company is required to make subjective assessments as to the useful lives and classification of its properties for purposes of determining the amount of depreciation expense to reflect each year with respect to those properties. These assessments have a direct impact on the Company’s net income. Should the Company change the expected useful life or classification of particular assets, it would result in a change in depreciation expense and annual net income. |
Revenue Recognition | Revenue Recognition The Company recognizes hotel operating revenues when obligations under the terms of the contracts with hotel guests have been satisfied. Room revenue is recognized when the Company’s hotels satisfy their performance obligations of providing a hotel room. The hotel reservation defines the terms of the agreement including an agreed-upon rate and length of stay. Food and beverage services, including restaurant, outlet, and banquet and catering, are also provided by the Company’s hotels and revenue is recognized at a point in time once food and beverage has been provided. Other operating department revenue, including parking fees, spa services, daily fees and other incidental fees, is recognized at a point in time when the goods and services are provided to the customer. Payment is due at the time that goods or services are rendered or billed. For room revenue, payment is typically due and paid in full at the end of the stay with some guests prepaying for their rooms prior to the stay. For package revenue, where ancillary guest services are included with the guests’ hotel reservations in a package arrangement, the Company allocates revenue based on the stand-alone selling price for each of the components of the package. The Company presents revenue net of taxes and excludes any amounts collected on behalf of third parties. For rental income from retail leases, revenue is recognized on a straight-line basis over the lives of the retail leases and is included in other income in the consolidated statements of operations and comprehensive income (loss). The recognition of revenue from retail leases will be subject to the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), which will take effect January 1, 2019 for the Company. See “Recently Issued Accounting Pronouncements” below for further discussion of revenue recognition. |
Share-Based Compensation | Share-Based Compensation From time to time, the Company awards shares under the 2014 Equity Incentive Plan, as amended (“2014 Plan”), which has approximately six years remaining, as compensation to executives, employees and members of the Board of Trustees (see Note 7). The shares issued to executives and employees generally vest over three years. The shares issued to members of the Board of Trustees vest immediately upon issuance. The Company recognizes compensation expense for nonvested shares with service conditions or service and market conditions on a straight-line basis over the vesting period based upon the fair value of the shares on the date of issuance, adjusted for forfeitures. Compensation expense for nonvested shares with service and performance conditions is recognized based on the fair value of the estimated number of shares expected to vest, as revised throughout the vesting period, adjusted for forfeitures. The Company estimates forfeiture amounts for the first three quarters of the year and adjusts for actual forfeiture amounts at year end. The 2014 Plan replaced the 2009 Equity Incentive Plan (“2009 Plan”) in May 2014. |
Noncontrolling Interests | Noncontrolling Interests The Company’s consolidated 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 noncontrolling interests 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 March 31, 2018 , 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. |
Variable Interest Entities | Variable Interest Entities The Operating Partnership is a variable interest entity. The Company’s only significant asset is its investment in the Operating Partnership, and consequently, substantially all of the Company’s assets and liabilities represent those assets and liabilities of the Operating Partnership. All of the Company’s debt is an obligation of the Operating Partnership. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU No. 2014-09 replaced most existing revenue recognition guidance in GAAP. Given the short-term, day-to-day nature of the Company’s hotel operating revenues, the pattern of revenue recognition did not change significantly, and therefore, the adoption of this standard did not have a material impact on the Company’s consolidated financial statements. Under ASU No. 2014-09, there was a recharacterization of certain revenue streams affecting both gross and net revenue reporting due to changes in principal versus agency guidance, which presentation is deemed immaterial for the Company and did not affect net income. The Company adopted ASU No. 2014-09 on its effective date of January 1, 2018 under the cumulative effect transition method. No adjustment was recorded to the Company’s opening balance of retained earnings on January 1, 2018 as there was no impact to net income for the Company. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessees to record operating and financing leases as assets and liabilities on the balance sheet and lessors to expense costs that are not initial direct leasing costs. The standard requires either a modified retrospective or proposed cumulative effect approach. This standard will be effective for the first annual reporting period beginning after December 15, 2018. The Company anticipates adopting the standard on January 1, 2019 under the proposed cumulative effect approach. In evaluating the effect that ASU No. 2016-02 will have on its consolidated financial statements and related disclosures, the Company believes the impact will be minimal to its consolidated statements of operations and comprehensive income. The Company will recognize a lease liability and right of use asset on its consolidated balance sheets due to the change in accounting treatment of the Company ’ s operating ground leases and corporate office lease. The Company is analyzing its current lease obligations and, based on current assumptions of discount rates and lease terms, expects to record a right of use asset and a related liability between $200,000 and $240,000 on its consolidated balance sheets, which may change significantly by the date of adoption based on changes to the discount rate, lease terms and other variables. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. This standard is effective for the first annual reporting period beginning after December 15, 2017. The Company adopted this standard on January 1, 2018. As a result, the classification of certain insurance proceeds changed from investing activities to operating activities on the Company ’ s consolidated statements of cash flows. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires that amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This standard is effective for the first annual period beginning after December 15, 2017, including interim periods within those periods. The Company adopted this standard on January 1, 2018. As a result, restricted cash reserves are included with cash and cash equivalents on the Company’s consolidated statements of cash flows. The adoption did not change the presentation of the Company’s consolidated balance sheets. In February 2017, the FASB issued ASU No. 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, which clarifies the scope of asset derecognition and adds further guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with non-customers. ASU No. 2017-05 will impact the recognition of gains and losses from hotel sales. T he Company does not sell hotel properties to customers as defined by the FASB, but has historically disposed of hotel properties for cash and with no contingencies and no future involvement in the hotel operations. This standard is effective for the first annual period beginning after December 15, 2017, including interim periods within those periods. The Company adopted this standard on January 1, 2018. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which improves the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements and simplifies the application of hedge accounting. This standard will be effective for the first annual period beginning after December 15, 2018, including interim periods within those periods. Early adoption is permitted. The Company adopted this standard on January 1, 2018 and aside from minor presentation changes in its disclosure on derivative and hedging activities, it does not have a material effect on the Company’s consolidated financial statements. |
Reclassification | Reclassification Certain amounts in the 2017 financial statements have been reclassified to conform with the 2018 presentation. |
Investment in Hotel Properties
Investment in Hotel Properties (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Real Estate [Abstract] | |
Investment in Hotel Properties | Investment in hotel properties as of March 31, 2018 and December 31, 2017 consists of the following: March 31, 2018 December 31, 2017 Land $ 624,847 $ 624,843 Buildings and improvements 3,295,076 3,271,473 Furniture, fixtures and equipment 815,097 762,150 Investment in hotel properties, gross 4,735,020 4,658,466 Accumulated depreciation (1,437,992 ) (1,392,851 ) Investment in hotel properties, net $ 3,297,028 $ 3,265,615 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Components of Long-Term Debt | Debt as of March 31, 2018 and December 31, 2017 consisted of the following: Balance Outstanding as of Debt Interest Maturity March 31, December 31, Credit facilities Senior unsecured credit facility Floating (a) January 2021 (a) $ 0 $ 0 LHL unsecured credit facility Floating (b) January 2021 (b) 0 0 Total borrowings under credit facilities 0 0 Term loans First Term Loan Floating/Fixed (c) January 2022 300,000 300,000 Second Term Loan Floating/Fixed (c) January 2021 555,000 555,000 Debt issuance costs, net (1,659 ) (1,805 ) Total term loans, net of unamortized debt issuance costs 853,341 853,195 Massport Bonds Hyatt Regency Boston Harbor (taxable) Floating (d) - (d) 0 5,400 Hyatt Regency Boston Harbor (tax exempt) Floating (d) - (d) 0 37,100 Debt issuance costs, net 0 (6 ) Total bonds payable, net of unamortized debt issuance costs 0 42,494 Mortgage loan Westin Copley Place Floating (e) August 2018 (e) 225,000 225,000 Debt issuance costs, net (329 ) (568 ) Total mortgage loan, net of unamortized debt issuance costs 224,671 224,432 Total debt $ 1,078,012 $ 1,120,121 (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 (as defined in the credit agreement) plus an applicable margin. There were no borrowings outstanding at March 31, 2018 and December 31, 2017 . The Company has the option, pursuant to certain terms and conditions, to extend the maturity date for two six -month extensions. (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 (as defined in the credit agreement) plus an applicable margin. There were no borrowings outstanding at March 31, 2018 and December 31, 2017 . LHL has the option, pursuant to certain terms and conditions, to extend the maturity date for two six -month extensions. (c) Term loans bear interest at floating rates equal to LIBOR plus an applicable margin. The Company entered into interest rate swaps to effectively fix the interest rates for the First Term Loan (as defined below) and the Second Term Loan (as defined below). At March 31, 2018 and December 31, 2017 , the Company had interest rate swaps on the full amounts outstanding. See “Derivative and Hedging Activities” below. At March 31, 2018 and December 31, 2017 , the fixed all-in interest rates for the First Term Loan and Second Term Loan were 3.23% and 2.95% , respectively, at the Company’s current leverage ratio (as defined in the swap agreements). (d) The Company repaid the Massport Bonds on their maturity date, March 1, 2018, with available cash. The bonds bore interest based on weekly floating rates. The interest rates as of December 31, 2017 were 1.70% and 1.78% for the $5,400 and $37,100 bonds, respectively. (e) The mortgage loan matures on August 14, 2018 with three options to extend the maturity date to January 5, 2021, pursuant to certain terms and conditions. The Company anticipates exercising all available options. The interest-only mortgage loan bears interest at a variable rate ranging from LIBOR plus 1.75% to LIBOR plus 2.00% , depending on Westin Copley Place’s net cash flow (as defined in the loan agreement). The interest rate as of March 31, 2018 was LIBOR plus 1.75% , which equaled 3.53% . The interest rate as of December 31, 2017 was LIBOR plus 1.75% , which equaled 3.23% . The mortgage loan allows for prepayments without penalty, subject to certain terms and conditions. |
Future Scheduled Debt Principal Payments | Future scheduled debt principal payments as of March 31, 2018 (refer to previous table for extension options) are as follows: 2018 $ 225,000 2019 0 2020 0 2021 555,000 2022 300,000 Total debt $ 1,080,000 |
Summary Interest Expense and Weighted Average Interest Rates for Borrowings | A summary of the Company’s interest expense and weighted average interest rates for unswapped variable rate debt for the three months ended March 31, 2018 and 2017 is as follows: For the three months ended March 31, 2018 2017 Interest Expense: Interest incurred $ 9,668 $ 9,140 Amortization of debt issuance costs 672 765 Capitalized interest (180 ) (78 ) Interest expense $ 10,160 $ 9,827 Weighted Average Interest Rates for Unswapped Variable Rate Debt: Senior unsecured credit facility N/A N/A LHL unsecured credit facility N/A N/A Massport Bonds (1) 1.25 % 0.70 % Mortgage loan (Westin Copley Place) 3.35 % 2.54 % (1) The Massport Bonds were repaid on March 1, 2018. |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following table presents the effect of derivative instruments on the Company’s accompanying consolidated statements of operations and comprehensive income, including the location and amount of unrealized gain on outstanding derivative instruments in cash flow hedging relationships, for the three months ended March 31, 2018 and 2017 : Amount of Gain Recognized in OCI on Derivative Instruments Location of (Gain) Loss Reclassified from AOCI into Net (Loss) Income Amount of (Gain) Loss Reclassified from AOCI into Net (Loss) Income Total Amount of Interest Expense Line Item Presented in the Statement of Operations For the three months ended For the three months ended For the three months ended March 31, March 31, March 31, 2018 2017 2018 2017 2018 2017 Derivatives in cash flow hedging relationships: Interest rate swaps $ 8,209 $ 1,124 Interest expense $ (6 ) $ 985 $ 10,160 $ 9,827 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating Leases of Lessee | A summary of the Company’s hotels subject to non-cancelable operating leases as of March 31, 2018 is as follows: Lease Properties Lease Type Lease Expiration Date Southernmost Beach Resort Key West (Restaurant facility) Ground lease April 2019 (1) Hyatt Regency Boston Harbor Ground lease April 2077 The Hilton San Diego Resort and Spa Ground lease December 2045 San Diego Paradise Point Resort and Spa Ground lease May 2050 Hotel Vitale Ground lease March 2056 (2) Viceroy Santa Monica Ground lease September 2065 Westin Copley Place (3) Air rights lease December 2077 The Liberty Hotel Ground lease May 2080 Hotel Solamar Ground lease December 2102 (1) The Company can begin negotiating a renewal one year in advance of the lease expiration date. (2) The Company has the option, subject to certain terms and conditions, to extend the ground lease for 14 years to 2070. (3) No payments are required through maturity. |
Capital Leases of Lessee | A summary of the Company’s hotels subject to capital leases of land and building as of March 31, 2018 is as follows: Lease Properties Estimated Present Value of Remaining Rent Payments (1) Lease Expiration Date The Roger $ 4,892 December 2044 Harbor Court Hotel $ 18,603 August 2052 (1) At acquisition or as amended, the estimated present value of the remaining rent payments was recorded as capital lease obligations. These obligations, net of amortization, are included in accounts payable and accrued expenses in the accompanying consolidated balance sheets. |
Future Minimum Rent Payments | As of March 31, 2018 , future minimum rent payments, including capital lease payments, (without reflecting future applicable Consumer Price Index increases) are as follows: 2018 $ 8,518 2019 11,282 2020 11,586 2021 11,682 2022 11,747 Thereafter 513,389 $ 568,204 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Dividends Paid | The Company paid the following dividends on preferred shares during the three months ended March 31, 2018 : Security Type Dividend per Share (1) For the Quarter Ended Record Date Date Paid 6.375% Series I $ 0.40 December 31, 2017 December 29, 2017 January 16, 2018 6.3% Series J $ 0.39 December 31, 2017 December 29, 2017 January 16, 2018 (1) Amounts are rounded to the nearest whole cent for presentation purposes. The Company paid the following dividends on common shares/units during the three months ended March 31, 2018 : Dividend per For the Quarter Ended Record Date Date Paid $ 0.45 December 31, 2017 December 29, 2017 January 16, 2018 The Company paid the following common and preferred dividends subsequent to March 31, 2018 : Security Type Dividend per Share/Unit (1) For the Quarter Ended Record Date Date Paid Common Shares/Units $ 0.45 March 31, 2018 March 29, 2018 April 16, 2018 6.375% Series I Preferred Shares $ 0.40 March 31, 2018 March 29, 2018 April 16, 2018 6.3% Series J Preferred Shares $ 0.39 March 31, 2018 March 29, 2018 April 16, 2018 (1) Amounts are rounded to the nearest whole cent for presentation purposes. |
Preferred Shares Outstanding | The following preferred shares of beneficial interest were outstanding as of March 31, 2018 : Security Type Number of 6.375% Series I Preferred Shares 4,400,000 6.3% Series J Preferred Shares 6,000,000 |
Equity Incentive Plan (Tables)
Equity Incentive Plan (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Nonvested Share Awards | A summary of the Company’s nonvested share awards with either market or performance conditions as of March 31, 2018 is as follows: Share Awards (Target Number of Shares) Weighted- Average Grant Date Fair Value Nonvested at January 1, 2018 263,948 $ 27.04 Granted 152,024 25.46 Vested (16,410 ) 36.26 Forfeited (8,202 ) 36.26 Nonvested at March 31, 2018 391,360 $ 26.05 A summary of the Company’s nonvested share awards with service conditions as of March 31, 2018 is as follows: Number of Weighted - Nonvested at January 1, 2018 170,414 $ 28.95 Granted 148,591 25.46 Vested (55,380 ) 31.08 Forfeited 0 0.00 Nonvested at March 31, 2018 263,625 $ 26.53 |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disaggregation of Revenue [Abstract] | |
Disaggregated Hotel Operating Revenues | The following tables set forth the Company’s disaggregated hotel operating revenues by the geographic location of its hotels for the three months ended March 31, 2018 and 2017 : For the three months ended March 31, 2018 Room Food and beverage Other operating department Total hotel operating revenues Boston $ 20,256 $ 9,624 $ 2,459 $ 32,339 Chicago 8,010 2,234 827 $ 11,071 Key West 11,421 2,685 1,336 $ 15,442 Los Angeles 14,983 2,383 1,539 $ 18,905 New York 16,254 1,215 3,663 $ 21,132 San Diego Downtown 8,595 1,867 660 $ 11,122 San Francisco 32,927 5,398 3,406 $ 41,731 Washington, DC 23,038 5,796 1,987 $ 30,821 Other (1) 19,938 12,430 4,230 $ 36,598 $ 155,422 $ 43,632 $ 20,107 $ 219,161 (1) For the three months ended March 31, 2018 , other includes Chaminade Resort and Conference Center in Santa Cruz, CA, Embassy Suites Philadelphia - Center City in Philadelphia, PA, L’Auberge Del Mar in Del Mar, CA, San Diego Paradise Point Resort and Spa and The Hilton San Diego Resort and Spa in San Diego, CA and The Heathman Hotel in Portland, OR. For the three months ended March 31, 2017 Room Food and beverage Other operating department Total hotel operating revenues Boston $ 21,753 $ 10,448 $ 2,194 $ 34,395 Chicago 7,790 2,277 1,039 $ 11,106 Key West 12,635 2,643 1,283 $ 16,561 Los Angeles 16,289 2,616 1,154 $ 20,059 New York 15,776 1,220 3,015 $ 20,011 San Diego Downtown 8,924 1,895 651 $ 11,470 San Francisco (1) 37,002 6,099 2,957 $ 46,058 Washington, DC 30,896 7,115 1,857 $ 39,868 Other (2) 27,300 17,991 6,217 $ 51,508 $ 178,365 $ 52,304 $ 20,367 $ 251,036 (1) Includes Hotel Triton which was sold on April 11, 2017. (2) For the three months ended March 31, 2017 , other includes Alexis Hotel (sold on March 31, 2017) and Hotel Deca (sold on January 19, 2017) in Seattle, WA, Chaminade Resort and Conference Center in Santa Cruz, CA, Embassy Suites Philadelphia - Center City and Westin Philadelphia (sold on June 29, 2017) in Philadelphia, PA, Lansdowne Resort (sold on March 22, 2017) in Lansdowne, VA , L’Auberge Del Mar in Del Mar, CA, San Diego Paradise Point Resort and Spa and The Hilton San Diego Resort and Spa in San Diego, CA and The Heathman Hotel in Portland, OR. |
LHL (Tables)
LHL (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 2017 General and administrative $ 22,263 $ 24,591 Sales and marketing 15,896 17,944 Repairs and maintenance 8,928 9,758 Management and incentive fees 5,954 7,226 Utilities and insurance 7,164 7,843 Franchise fees 1,648 1,837 Other expenses 341 457 Total other indirect expenses $ 62,194 $ 69,656 |
Schedule of Hotels Owned | As of March 31, 2018 , LHL leased all 41 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 Vitale San Francisco, CA 9. Park Central San Francisco San Francisco, CA 10. Serrano Hotel San Francisco, CA 11. The Marker San Francisco San Francisco, CA 12. Villa Florence San Francisco, CA 13. Chaminade Resort and Conference Center Santa Cruz, CA 14. Viceroy Santa Monica Santa Monica, CA 15. Chamberlain West Hollywood West Hollywood, CA 16. Le Montrose Suite Hotel West Hollywood, CA 17. Le Parc Suite Hotel West Hollywood, CA 18. The Grafton on Sunset West Hollywood, CA 19. Hotel George Washington, DC 20. Hotel Madera Washington, DC 21. Hotel Palomar, Washington, DC Washington, DC 22. Hotel Rouge Washington, DC 23. Mason & Rook Hotel Washington, DC 24. Sofitel Washington, DC Lafayette Square Washington, DC 25. The Donovan Washington, DC 26. The Liaison Capitol Hill Washington, DC 27. Topaz Hotel Washington, DC 28. Southernmost Beach Resort Key West Key West, FL 29. The Marker Waterfront Resort Key West, FL 30. Hotel Chicago Chicago, IL 31. Westin Michigan Avenue Chicago, IL 32. Hyatt Regency Boston Harbor Boston, MA 33. Onyx Hotel Boston, MA 34. The Liberty Hotel Boston, MA 35. Westin Copley Place Boston, MA 36. Gild Hall New York, NY 37. The Roger New York, NY 38. Park Central Hotel New York (shared lease with WestHouse Hotel New York) New York, NY 39. WestHouse Hotel New York New York, NY 40. The Heathman Hotel Portland, OR 41. Embassy Suites Philadelphia - Center City Philadelphia, PA |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Benefit | Income tax benefit was comprised of the following for the three months ended March 31, 2018 and 2017 : For the three months ended March 31, 2018 2017 LHL’s income tax benefit $ (4,196 ) $ (5,071 ) Operating Partnership’s income tax expense 169 298 Total income tax benefit $ (4,027 ) $ (4,773 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 December 31, 2017 Using Significant Other Observable Inputs (Level 2) Description Consolidated Balance Sheet Location Derivative interest rate instruments Prepaid expenses and other assets $ 19,096 $ 10,893 Derivative interest rate instruments Accounts payable and accrued expenses $ 0 $ 0 |
Schedule of Carrying Value and Estimated Fair 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 March 31, 2018 and December 31, 2017 : March 31, 2018 December 31, 2017 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Borrowings under credit facilities $ 0 $ 0 $ 0 $ 0 Term loans $ 855,000 $ 857,479 $ 855,000 $ 857,577 Bonds payable $ 0 $ 0 $ 42,500 $ 42,500 Mortgage loan $ 225,000 $ 224,707 $ 225,000 $ 224,429 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 2017 Numerator: Net (loss) income attributable to common shareholders $ (11,078 ) $ 76,084 Dividends paid on unvested restricted shares (119 ) (122 ) Undistributed earnings attributable to unvested restricted shares 0 (37 ) Net (loss) income attributable to common shareholders excluding amounts attributable to unvested restricted shares $ (11,197 ) $ 75,925 Denominator: Weighted average number of common shares - basic 112,163,674 112,923,719 Effect of dilutive securities: Compensation-related shares 0 382,490 Weighted average number of common shares - diluted 112,163,674 113,306,209 Earnings per Common Share - Basic: Net (loss) income attributable to common shareholders excluding amounts attributable to unvested restricted shares $ (0.10 ) $ 0.67 Earnings per Common Share - Diluted: Net (loss) income attributable to common shareholders excluding amounts attributable to unvested restricted shares $ (0.10 ) $ 0.67 |
Supplemental Information to S33
Supplemental Information to Statements of Cash Flows (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Information to Statements of Cash Flows | For the three months ended March 31, 2018 2017 Interest paid, net of capitalized interest $ 9,374 $ 9,142 Interest capitalized 180 78 Income taxes refunded, net (3,227 ) (57 ) (Decrease) increase in distributions payable on common shares (1,283 ) 59 Write-off of fully amortized debt issuance costs 669 5,057 Increase in accrued capital expenditures 6,605 433 Grant of nonvested shares and awards to employees and executives, net 7,653 7,180 Issuance of common shares for Board of Trustees compensation 557 1,240 In conjunction with the sale of properties, the Company disposed of the following assets and liabilities: Sale proceeds, net of closing costs $ 0 $ 252,407 Other assets 0 5,803 Liabilities 0 (6,250 ) Proceeds from sale of properties $ 0 $ 251,960 |
Subsequent Events (Tables)
Subsequent Events (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Schedule of Dividends Paid | The Company paid the following dividends on preferred shares during the three months ended March 31, 2018 : Security Type Dividend per Share (1) For the Quarter Ended Record Date Date Paid 6.375% Series I $ 0.40 December 31, 2017 December 29, 2017 January 16, 2018 6.3% Series J $ 0.39 December 31, 2017 December 29, 2017 January 16, 2018 (1) Amounts are rounded to the nearest whole cent for presentation purposes. The Company paid the following dividends on common shares/units during the three months ended March 31, 2018 : Dividend per For the Quarter Ended Record Date Date Paid $ 0.45 December 31, 2017 December 29, 2017 January 16, 2018 The Company paid the following common and preferred dividends subsequent to March 31, 2018 : Security Type Dividend per Share/Unit (1) For the Quarter Ended Record Date Date Paid Common Shares/Units $ 0.45 March 31, 2018 March 29, 2018 April 16, 2018 6.375% Series I Preferred Shares $ 0.40 March 31, 2018 March 29, 2018 April 16, 2018 6.3% Series J Preferred Shares $ 0.39 March 31, 2018 March 29, 2018 April 16, 2018 (1) Amounts are rounded to the nearest whole cent for presentation purposes. |
Organization (Details)
Organization (Details) | Mar. 31, 2018statehotelguest_roomshares |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of hotels | hotel | 41 |
Number of guest rooms | guest_room | 10,450 |
Number of states in which hotels located | state | 7 |
Ownership percentage by the company | 99.90% |
Ownership percentage by limited partners | 0.10% |
Common units of Operating Partnership interest held by limited partners | shares | 145,223 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies Investment in Hotel Properties (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2018 | |
Building | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life (in years) | 30 years |
Building | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life (in years) | 40 years |
Building Improvements | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life (in years) | 15 years |
Land Improvements | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life (in years) | 7 years |
Swimming Pool Assets | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life (in years) | 20 years |
Furniture and Fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life (in years) | 3 years |
Furniture and Fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life (in years) | 5 years |
Summary of Significant Accoun37
Summary of Significant Accounting Policies Share-Based Compensation (Narrative) (Details) - 2014 Plan | 3 Months Ended |
Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Remaining years | 6 years |
Vesting period (in years) | 3 years |
Summary of Significant Accoun38
Summary of Significant Accounting Policies Recently Issued Accounting Pronouncements (Details) - Accounting Standards Update 2016-02 - Scenario, Forecast $ in Thousands | Jan. 01, 2019USD ($) |
Minimum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating Lease, Right-of-Use Asset | $ 200,000 |
Operating Lease, Liability | 200,000 |
Maximum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating Lease, Right-of-Use Asset | 240,000 |
Operating Lease, Liability | $ 240,000 |
Investment in Hotel Propertie39
Investment in Hotel Properties (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Real Estate [Abstract] | ||
Land | $ 624,847 | $ 624,843 |
Buildings and improvements | 3,295,076 | 3,271,473 |
Furniture, fixtures and equipment | 815,097 | 762,150 |
Investment in hotel properties, gross | 4,735,020 | 4,658,466 |
Accumulated depreciation | (1,437,992) | (1,392,851) |
Investment in hotel properties, net | $ 3,297,028 | $ 3,265,615 |
Investment in Hotel Propertie40
Investment in Hotel Properties (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Real Estate Properties [Line Items] | |||
Buildings and Improvements, Gross | $ 3,295,076 | $ 3,271,473 | |
Real Estate Investment Property, Accumulated Depreciation | 1,437,992 | 1,392,851 | |
Depreciation | 45,154 | $ 47,131 | |
Assets Held under Capital Leases | |||
Real Estate Properties [Line Items] | |||
Buildings and Improvements, Gross | 147,322 | 147,322 | |
Real Estate Investment Property, Accumulated Depreciation | $ 28,040 | $ 26,973 |
Investment in Hotel Propertie41
Investment in Hotel Properties Dispositions (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 22, 2017 | Jan. 19, 2017 | Mar. 31, 2018 | Mar. 31, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sale of property | $ 0 | $ 252,407 | |||
Gain on sale of property | $ 0 | 74,358 | |||
Hotel Deca | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sale of property | $ 55,000 | ||||
Gain on sale of property | 30,607 | ||||
Lansdowne Resort | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sale of property | $ 133,000 | ||||
Gain on sale of property | 10,401 | ||||
Alexis Hotel | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sale of property | $ 71,625 | ||||
Gain on sale of property | $ 33,350 |
Long-Term Debt Summary (Details
Long-Term Debt Summary (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018USD ($)extension | Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | ||
Credit facilities | $ 0 | $ 0 |
Term loans | 853,341,000 | 853,195,000 |
Massport Bonds | 0 | 42,494,000 |
Mortgage loan | 224,671,000 | 224,432,000 |
Debt issuance costs, net | (3,001,000) | (3,274,000) |
Total Debt | 1,080,000,000 | |
Line of Credit | Senior Unsecured Credit Facility | ||
Debt Instrument [Line Items] | ||
Credit facilities | $ 0 | 0 |
Number of extension options | extension | 2 | |
Extension option period | 6 months | |
Line of Credit | LHL Unsecured Credit Facility | ||
Debt Instrument [Line Items] | ||
Credit facilities | $ 0 | 0 |
Number of extension options | extension | 2 | |
Extension option period | 6 months | |
Term Loan | ||
Debt Instrument [Line Items] | ||
Debt issuance costs, net | $ (1,659,000) | (1,805,000) |
Term Loan | First Term Loan | ||
Debt Instrument [Line Items] | ||
Term loans | $ 300,000,000 | $ 300,000,000 |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.23% | 3.23% |
Term Loan | Second Term Loan | ||
Debt Instrument [Line Items] | ||
Term loans | $ 555,000,000 | $ 555,000,000 |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 2.95% | 2.95% |
Bonds Payable | ||
Debt Instrument [Line Items] | ||
Debt issuance costs, net | $ 0 | $ (6,000) |
Bonds Payable | Taxable Bond of Hyatt Regency Boston Harbor | ||
Debt Instrument [Line Items] | ||
Massport Bonds | 0 | $ 5,400,000 |
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 1.70% | |
Bonds Payable | Tax Exempted Bond of Hyatt Regency Boston Harbor | ||
Debt Instrument [Line Items] | ||
Massport Bonds | 0 | $ 37,100,000 |
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 1.78% | |
Mortgage | ||
Debt Instrument [Line Items] | ||
Debt issuance costs, net | (329,000) | $ (568,000) |
Mortgage | Westin Copley Place | ||
Debt Instrument [Line Items] | ||
Mortgage loan | $ 225,000,000 | $ 225,000,000 |
Debt Instrument, Number of Extension Options | extension | 3 | |
Debt Instrument, Interest Rate, Effective Percentage | 3.53% | 3.23% |
Mortgage | Westin Copley Place | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | 1.75% |
Mortgage | Westin Copley Place | London Interbank Offered Rate (LIBOR) | Minimum | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |
Mortgage | Westin Copley Place | London Interbank Offered Rate (LIBOR) | Maximum | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |
Debt | ||
Debt Instrument [Line Items] | ||
Total Debt | $ 1,078,012,000 | $ 1,120,121,000 |
Long-Term Debt Future Scheduled
Long-Term Debt Future Scheduled Debt Principal Payments (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Debt Disclosure [Abstract] | |
2,018 | $ 225,000 |
2,019 | 0 |
2,020 | 0 |
2,021 | 555,000 |
2,022 | 300,000 |
Long-term Debt | $ 1,080,000 |
Long-Term Debt Summary of Sched
Long-Term Debt Summary of Schedule of Interest Expense and Weighted Average Interest Rates (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Interest Expense: [Abstract] | ||
Interest incurred | $ 9,668 | $ 9,140 |
Amortization of debt issuance costs | 672 | 765 |
Capitalized interest | (180) | (78) |
Interest expense | $ 10,160 | $ 9,827 |
Massport Bonds | Bonds Payable | ||
Interest Expense: [Abstract] | ||
Weighted Average Interest Rates for Unswapped Variable Rate Debt | 1.25% | 0.70% |
Westin Copley Place | Mortgage | ||
Interest Expense: [Abstract] | ||
Weighted Average Interest Rates for Unswapped Variable Rate Debt | 3.35% | 2.54% |
Long-Term Debt Credit Facilitie
Long-Term Debt Credit Facilities (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2018USD ($)extension | |
Debt Instrument [Line Items] | |
Debt Instrument, Covenant, Leverage Ratio | 6.50 |
Debt Instrument, Covenant, Leverage Ratio, Number of Quarters, Measurement Period | 2 |
Line of Credit | Senior Unsecured Credit Facility | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Current Borrowing Capacity | $ 750,000,000 |
Line of Credit Facility, Number of Extension Options | extension | 2 |
Extension option period | 6 months |
Maximum borrowing capacity under unsecured credit facility | $ 1,250,000,000 |
Line of Credit | Senior Unsecured Credit Facility | Minimum | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.20% |
Line of Credit | Senior Unsecured Credit Facility | Maximum | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.30% |
Line of Credit | LHL Unsecured Credit Facility | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Current Borrowing Capacity | $ 25,000,000 |
Line of Credit Facility, Number of Extension Options | extension | 2 |
Extension option period | 6 months |
Line of Credit | LHL Unsecured Credit Facility | Minimum | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.20% |
Line of Credit | LHL Unsecured Credit Facility | Maximum | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.30% |
Long-Term Debt Term Loans (Narr
Long-Term Debt Term Loans (Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | ||
Term loans | $ 853,341,000 | $ 853,195,000 |
Debt Instrument, Covenant, Leverage Ratio | 6.50 | |
Debt Instrument, Covenant, Leverage Ratio, Number of Quarters, Measurement Period | 2 | |
Term Loan | First Term Loan | ||
Debt Instrument [Line Items] | ||
Term loans | $ 300,000,000 | 300,000,000 |
Lender commitments | 500,000,000 | |
Term Loan | Second Term Loan | ||
Debt Instrument [Line Items] | ||
Term loans | 555,000,000 | $ 555,000,000 |
Lender commitments | $ 700,000,000 |
Long-Term Debt Derivative and H
Long-Term Debt Derivative and Hedging Activities (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Accumulated other comprehensive income | $ 19,072,000 | $ 10,880,000 |
Derivative Instruments, Gain Reclassification from Accumulated OCI to Income, Estimate of Time to Transfer (in months) | 12 months | |
Term Loan | First Term Loan | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.23% | 3.23% |
Term Loan | Second Term Loan | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 2.95% | 2.95% |
Designated as Hedging Instrument | Interest Rate Swap | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Unrealized gain included in accumulated other comprehensive income | $ 19,096,000 | $ 10,893,000 |
Accumulated other comprehensive income | 19,072,000 | 10,880,000 |
Derivative change in fair value recorded in other comprehensive income attributable to noncontrolling interests | 24,000 | $ 13,000 |
Amount reclassified from AOCI and noncontrolling interests and recognized as an increase to income in the next 12 months | 1,314,000 | |
Designated as Hedging Instrument | Interest Rate Swap | First Term Loan | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional Amount | 300,000,000 | |
Designated as Hedging Instrument | Interest Rate Swap | Second Term Loan | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional Amount | 555,000,000 | |
Designated as Hedging Instrument | Interest Rate Swap | Second Term Loan, Interest Rate Period Hedged from May 16, 2019 through January 29, 2021 | Second Term Loan | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional Amount | $ 377,500,000 |
Long-Term Debt Derivative and48
Long-Term Debt Derivative and Hedging Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total Amount of Interest Expense Line Item Presented in the Statement of Operations | $ 10,160 | $ 9,827 |
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain Recognized in OCI on Derivative Instruments | 8,209 | 1,124 |
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap | Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (Gain) Loss Reclassified from AOCI into Net (Loss) Income | (6) | 985 |
Total Amount of Interest Expense Line Item Presented in the Statement of Operations | $ 10,160 | $ 9,827 |
Long-Term Debt Extinguishment o
Long-Term Debt Extinguishment of Debt (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Debt Disclosure [Abstract] | ||
Loss on Extinguishment of Debt | $ 0 | $ 1,706 |
Commitments and Contingencies G
Commitments and Contingencies Ground, Land and Building, and Air Rights Leases - Operating Leases (Details) - Hotel | 3 Months Ended |
Mar. 31, 2018payment | |
Southernmost Beach Resort Key West | |
Operating Leased Assets [Line Items] | |
Lessee Leasing Arrangements, Operating Leases, Renewal Period (in years) | 1 year |
Hotel Vitale | |
Operating Leased Assets [Line Items] | |
Lease Renewal Term (in years) | 14 years |
Westin Copley Place | |
Operating Leased Assets [Line Items] | |
Future Rent Payments Per Year | 0 |
Commitments and Contingencies51
Commitments and Contingencies Ground, Land and Building, and Air Rights Leases (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Capital Leased Assets [Line Items] | ||
Straight-line ground rent | $ 454 | $ 465 |
Ground rent | 3,829 | 3,385 |
Hotel | The Roger | ||
Capital Leased Assets [Line Items] | ||
Payments related to leases | 99 | 99 |
Hotel | Harbor Court Hotel | ||
Capital Leased Assets [Line Items] | ||
Payments related to leases | $ 235 | $ 288 |
Commitments and Contingencies52
Commitments and Contingencies Ground, Land and Building, and Air Rights Leases - Capital Leases (Details) $ in Thousands | Mar. 31, 2018USD ($) |
The Roger | |
Capital Leased Assets [Line Items] | |
Estimated Present Value of Remaining Rent Payments | $ 4,892 |
Harbor Court Hotel | |
Capital Leased Assets [Line Items] | |
Estimated Present Value of Remaining Rent Payments | $ 18,603 |
Commitments and Contingencies F
Commitments and Contingencies Future Minimum Rent Payments (Details) - Operating and Capital Leases $ in Thousands | Mar. 31, 2018USD ($) |
Capital Leased Assets [Line Items] | |
2,018 | $ 8,518 |
2,019 | 11,282 |
2,020 | 11,586 |
2,021 | 11,682 |
2,022 | 11,747 |
Thereafter | 513,389 |
Total | $ 568,204 |
Commitments and Contingencies R
Commitments and Contingencies Reserve Funds for Future Capital Expenditures (Narrative) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Percentage of reserve funds provided by the company | 4.00% |
Restricted cash and cash equivalents available for capital expenditures | $ 12,141 |
Commitments and Contingencies55
Commitments and Contingencies Restricted Cash Reserves (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Commitments and Contingencies Disclosure [Abstract] | ||
Restricted cash reserves | $ 13,871 | $ 14,262 |
Restricted cash and cash equivalents available for capital expenditures | 12,141 | |
Restricted cash and cash equivalents available for insurance or management liabilities | $ 1,730 |
Equity Common Shares of Benefic
Equity Common Shares of Beneficial Interest (Narrative) (Details) - Common Shares - 2014 Plan | Mar. 21, 2018installmentshares | Mar. 02, 2018shares | Jan. 01, 2018shares |
Board of Trustees | |||
Class of Stock [Line Items] | |||
Shares Issued During Period, Shares, Share-based Compensation | 19,125 | ||
Additional deferred shares issued | 5,832 | ||
Executives | Restricted Shares | |||
Class of Stock [Line Items] | |||
Shares Issued During Period, Shares, Restricted Share Awards | 16,410 | ||
Executives and Employees | Nonvested Share Awards with Service Conditions | |||
Class of Stock [Line Items] | |||
Shares Issued During Period, Shares, Share-based Compensation | 148,591 | ||
Number of annual installments in which shares vest | installment | 3 |
Equity Common Dividends (Detail
Equity Common Dividends (Details) | Jan. 16, 2018$ / shares |
Common Shares | |
Class of Stock [Line Items] | |
Dividend per Share/Unit (in dollars per share) | $ 0.45 |
Equity Treasury Shares (Narrati
Equity Treasury Shares (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Class of Stock [Line Items] | ||
Repurchase of common shares into treasury | 31,323 | |
Payments for repurchase of common shares | $ 75,370,000 | $ 2,223,000 |
Common shares held in treasury | 2,872,032 | |
Share Awards with Market or Performance Conditions | ||
Class of Stock [Line Items] | ||
Number of treasury shares re-issued | 16,410 | |
Share Awards with Service Conditions | ||
Class of Stock [Line Items] | ||
Number of treasury shares re-issued | 148,591 | |
Board of Trustees | ||
Class of Stock [Line Items] | ||
Number of treasury shares re-issued | 19,125 | |
Repurchase Program | ||
Class of Stock [Line Items] | ||
Repurchase of common shares into treasury | 2,982,800 | |
Share repurchase program, authorized | $ 600,000,000 | |
Payments for repurchase of common shares | 74,515,000 | |
Payments for commissions | 60,000 | |
Share repurchase program, remaining authorized | $ 495,351,000 |
Equity Preferred Shares Outstan
Equity Preferred Shares Outstanding (Details) - shares | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Class of Stock [Line Items] | ||
Number of Shares | 10,400,000 | 10,400,000 |
6.375% Series I Preferred Shares | ||
Class of Stock [Line Items] | ||
Dividend rate | 6.375% | |
Number of Shares | 4,400,000 | |
6.3% Series J Preferred Shares | ||
Class of Stock [Line Items] | ||
Dividend rate | 6.30% | |
Number of Shares | 6,000,000 |
Equity Preferred Shares (Narrat
Equity Preferred Shares (Narrative) (Details) - $ / shares | May 25, 2021 | Mar. 31, 2018 |
Series I Preferred Shares | ||
Class of Stock [Line Items] | ||
Dividend rate | 6.375% | |
Redemption price per preferred share (in dollars per share) | $ 25 | |
Right to convert to a number of common shares, capped | 8,835,200 | |
Series J Preferred Shares | ||
Class of Stock [Line Items] | ||
Dividend rate | 6.30% | |
Right to convert to a number of common shares, capped | 12,842,400 | |
Series J Preferred Shares | Scenario, Forecast | ||
Class of Stock [Line Items] | ||
Redemption price per preferred share (in dollars per share) | $ 25 | |
Preferred stock redeemable term (in days) | 120 days |
Equity Preferred Dividends (Det
Equity Preferred Dividends (Details) - $ / shares | Jan. 16, 2018 | Mar. 31, 2018 |
6.375% Series I Preferred Shares | ||
Class of Stock [Line Items] | ||
Dividend rate | 6.375% | |
Dividend per Share (in dollars per share) | $ 0.40 | |
6.3% Series J Preferred Shares | ||
Class of Stock [Line Items] | ||
Dividend rate | 6.30% | |
Dividend per Share (in dollars per share) | $ 0.39 |
Equity Noncontrolling Interest
Equity Noncontrolling Interest of Common Units in Operating Partnership (Narrative) (Details) $ / shares in Units, $ in Thousands | Mar. 31, 2018USD ($)$ / sharesshares |
Stockholders' Equity Note [Abstract] | |
Common units of limited partnership | shares | 145,223 |
Partnership interest held by limited partners | 0.10% |
Common units of operating partnership interest for cash or common shares | $ | $ 4,213 |
Share price (in dollars per share) | $ / shares | $ 29.01 |
Equity Incentive Plan (Narrativ
Equity Incentive Plan (Narrative) (Details) - 2014 Plan | 3 Months Ended |
Mar. 31, 2018shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Maximum common shares to be issued (in shares) | 2,900,000 |
Common shares to be issued per individual limit (in shares) | 500,000 |
Exercise price of share options as a percentage of fair market value, minimum | 100.00% |
Vesting period (in years) | 3 years |
Common shares available for grant (in shares) | 2,325,873 |
Equity Incentive Plan Nonvested
Equity Incentive Plan Nonvested Share Awards with Service Conditions (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
2014 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 3 years | ||
Nonvested Share Awards with Service Conditions | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation costs | $ 6,182 | $ 3,214 | |
Weighted-average recognized period (in years) | 1 year 7 months 6 days | 1 year 4 months 24 days | |
Total fair value of vested shares | $ 1,555 | $ 2,681 | |
Compensation costs | $ 800 | $ 848 | |
Nonvested Share Awards with Service Conditions | 2014 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 3 years |
Equity Incentive Plan Nonvest65
Equity Incentive Plan Nonvested Share Awards with Service Conditions (Details) - Nonvested Share Awards with Service Conditions | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |
Nonvested, Number of Shares Beginning Balance | shares | 170,414 |
Number of Shares, Granted | shares | 148,591 |
Number of Shares, Vested | shares | (55,380) |
Number of Shares, Forfeited | shares | 0 |
Nonvested, Number of Shares Ending Balance | shares | 263,625 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Nonvested, Weighted - Average Grant Date Fair Value Beginning Balance (in dollars per share) | $ / shares | $ 28.95 |
Weighted- Average Grant Date Fair Value, Granted (in dollars per share) | $ / shares | 25.46 |
Weighted - Average Grant Date Fair Value, Vested (in dollars per share) | $ / shares | 31.08 |
Weighted - Average Grant Date Fair Value, Forfeited (in dollars per share) | $ / shares | 0 |
Nonvested, Weighted - Average Grant Date Fair Value Ending Balance (in dollars per share) | $ / shares | $ 26.53 |
Equity Incentive Plan Nonvest66
Equity Incentive Plan Nonvested Share Awards with Market or Performance Conditions (Narrative) (Details) $ in Thousands | Mar. 21, 2018peer_companytrancheshares | Mar. 02, 2018USD ($)shares | Mar. 19, 2015shares | Mar. 31, 2018USD ($)shares | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($)shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Distributions on earned shares from share awards with market conditions | $ | $ (87) | $ (190) | ||||
Nonvested Share Awards with Market or Performance Conditions | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of Shares, Target | 152,024 | 49,225 | 152,024 | |||
Number of Shares, Earned | 16,410 | |||||
Percentage of Target Shares | 100.00% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 8,202 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Performance Shares Outstanding | 0 | 0 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Tranches | tranche | 3 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Peer Companies | peer_company | 10 | |||||
Unrecognized compensation costs | $ | $ 7,913 | $ 4,941 | ||||
Weighted-average recognized period (in years) | 2 years 4 months 24 days | 2 years | ||||
Number of Shares, Vested | 626,177 | 609,767 | ||||
Compensation costs | $ | $ 898 | $ 860 | ||||
Nonvested Share Awards with Market or Performance Conditions | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of Target Shares | 0.00% | 0.00% | ||||
Nonvested Share Awards with Market or Performance Conditions | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of Target Shares | 200.00% | 200.00% | ||||
Nonvested Share Awards with Market or Performance Conditions | Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of Shares, Target | 76,013 | 24,612 | ||||
Nonvested Share Awards with Market or Performance Conditions | Tranche Two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of Shares, Target | 76,011 | 24,613 | ||||
Nonvested Share Awards with Market or Performance Conditions | Former Chief Financial Officer | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of Shares, Target | 12,435 | |||||
Restricted Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of Shares Earned as a Percentage of Target Shares | 66.70% | |||||
Number of Shares, Earned | 16,410 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 8,202 | |||||
Distributions on earned shares from share awards with market conditions | $ | $ 87 |
Equity Incentive Plan Nonvest67
Equity Incentive Plan Nonvested Share Awards with Market or Performance Conditions (Summary of Nonvested Share Awards) (Details) - Nonvested Share Awards with Market or Performance Conditions - $ / shares | Mar. 21, 2018 | Mar. 19, 2015 | Mar. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||
Nonvested, Number of Shares Beginning Balance | 263,948 | ||
Number of Shares, Granted | 152,024 | 49,225 | 152,024 |
Number of Shares, Vested | (16,410) | ||
Number of Shares, Forfeited | (8,202) | ||
Nonvested, Number of Shares Ending Balance | 391,360 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Nonvested, Weighted - Average Grant Date Fair Value Beginning Balance (in dollars per share) | $ 27.04 | ||
Weighted- Average Grant Date Fair Value, Granted (in dollars per share) | 25.46 | ||
Weighted - Average Grant Date Fair Value, Vested (in dollars per share) | 36.26 | ||
Weighted - Average Grant Date Fair Value, Forfeited (in dollars per share) | 36.26 | ||
Nonvested, Weighted - Average Grant Date Fair Value Ending Balance (in dollars per share) | $ 26.05 |
Revenues (Details)
Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | $ 219,161 | $ 251,036 |
Boston | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | 32,339 | 34,395 |
Chicago | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | 11,071 | 11,106 |
Key West | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | 15,442 | 16,561 |
Los Angeles | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | 18,905 | 20,059 |
New York | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | 21,132 | 20,011 |
San Diego Downtown | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | 11,122 | 11,470 |
San Francisco | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | 41,731 | 46,058 |
Washington, DC | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | 30,821 | 39,868 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | 36,598 | 51,508 |
Room | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | 155,422 | 178,365 |
Room | Boston | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | 20,256 | 21,753 |
Room | Chicago | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | 8,010 | 7,790 |
Room | Key West | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | 11,421 | 12,635 |
Room | Los Angeles | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | 14,983 | 16,289 |
Room | New York | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | 16,254 | 15,776 |
Room | San Diego Downtown | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | 8,595 | 8,924 |
Room | San Francisco | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | 32,927 | 37,002 |
Room | Washington, DC | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | 23,038 | 30,896 |
Room | Other | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | 19,938 | 27,300 |
Food and beverage | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | 43,632 | 52,304 |
Food and beverage | Boston | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | 9,624 | 10,448 |
Food and beverage | Chicago | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | 2,234 | 2,277 |
Food and beverage | Key West | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | 2,685 | 2,643 |
Food and beverage | Los Angeles | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | 2,383 | 2,616 |
Food and beverage | New York | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | 1,215 | 1,220 |
Food and beverage | San Diego Downtown | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | 1,867 | 1,895 |
Food and beverage | San Francisco | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | 5,398 | 6,099 |
Food and beverage | Washington, DC | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | 5,796 | 7,115 |
Food and beverage | Other | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | 12,430 | 17,991 |
Other operating department | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | 20,107 | 20,367 |
Other operating department | Boston | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | 2,459 | 2,194 |
Other operating department | Chicago | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | 827 | 1,039 |
Other operating department | Key West | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | 1,336 | 1,283 |
Other operating department | Los Angeles | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | 1,539 | 1,154 |
Other operating department | New York | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | 3,663 | 3,015 |
Other operating department | San Diego Downtown | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | 660 | 651 |
Other operating department | San Francisco | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | 3,406 | 2,957 |
Other operating department | Washington, DC | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | 1,987 | 1,857 |
Other operating department | Other | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated hotel operating revenues | $ 4,230 | $ 6,217 |
Revenues (Narrative) (Details)
Revenues (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue [Abstract] | ||
Revenue recognized from contract liabilities | $ 17,975 | $ 21,950 |
LHL Schedule of Other Indirect
LHL Schedule of Other Indirect Hotel Operating Expenses (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($)hotel | Mar. 31, 2017USD ($) | |
Real Estate Properties [Line Items] | ||
General and administrative | $ 6,516 | $ 6,554 |
Other expenses | 1,220 | 1,918 |
Total other indirect expenses | $ 62,194 | 69,656 |
Number of hotels | hotel | 41 | |
LHL | ||
Real Estate Properties [Line Items] | ||
General and administrative | $ 22,263 | 24,591 |
Sales and marketing | 15,896 | 17,944 |
Repairs and maintenance | 8,928 | 9,758 |
Management and incentive fees | 5,954 | 7,226 |
Utilities and insurance | 7,164 | 7,843 |
Franchise fees | 1,648 | 1,837 |
Other expenses | 341 | 457 |
Total other indirect expenses | $ 62,194 | $ 69,656 |
Number of hotels | hotel | 41 |
Income Taxes Schedule of Income
Income Taxes Schedule of Income Tax (Benefit) Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Schedule of Income Taxes [Line Items] | ||
Income tax (benefit) expense | $ (4,027) | $ (4,773) |
LHL's income tax benefit | ||
Schedule of Income Taxes [Line Items] | ||
Income tax (benefit) expense | (4,196) | (5,071) |
Operating Partnership's income tax expense | ||
Schedule of Income Taxes [Line Items] | ||
Income tax (benefit) expense | $ 169 | $ 298 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Schedule of Income Taxes [Line Items] | ||
Loss before income tax benefit | $ 10,991 | $ (2,468) |
LHL | ||
Schedule of Income Taxes [Line Items] | ||
Federal and state effective tax rate | 29.50% | |
Loss before income tax benefit | $ 14,245 |
Fair Value Measurements Schedul
Fair Value Measurements Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Inputs, Level 2 - Designated as Hedging Instrument - Interest Rate Swap - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Prepaid Expenses and Other Assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative interest rate instruments, Prepaid expenses and other assets | $ 19,096 | $ 10,893 |
Accounts Payable and Accrued Expenses | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative interest rate instruments, Accounts payable and accrued expenses | $ 0 | $ 0 |
Fair Value Measurements Sched74
Fair Value Measurements Schedule of Fair Value and Carrying Value of Financial Instruments (Details) - Fair Value, Inputs, Level 2 - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Borrowings under credit facilities | $ 0 | $ 0 |
Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Borrowings under credit facilities | 0 | 0 |
Term Loan | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument | 855,000 | 855,000 |
Term Loan | Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument | 857,479 | 857,577 |
Bonds payable | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument | 0 | 42,500 |
Bonds payable | Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument | 0 | 42,500 |
Mortgage loan | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument | 225,000 | 225,000 |
Mortgage loan | Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument | $ 224,707 | $ 224,429 |
Fair Value Measurements Financi
Fair Value Measurements Financial Instruments Not Measured at Fair Value (Narrative) (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Assumptions, Weighted Average Effective Debt Interest Rate | 1.60% | 1.60% |
Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Inputs, Discount Rate | 1.40% | 1.40% |
Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Inputs, Discount Rate | 2.30% | 2.30% |
Earnings Per Common Share (Narr
Earnings Per Common Share (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2018shares | |
Earnings Per Share [Abstract] | |
Anti-dilutive compensation-related shares outstanding | 405,637 |
Earnings Per Common Share Sched
Earnings Per Common Share Schedule of Computation of Basic And Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Numerator: | ||
Net (loss) income attributable to common shareholders | $ (11,078) | $ 76,084 |
Dividends paid on unvested restricted shares | (119) | (122) |
Undistributed earnings attributable to unvested restricted shares | 0 | (37) |
Net (loss) income attributable to common shareholders excluding amounts attributable to unvested restricted shares | $ (11,197) | $ 75,925 |
Denominator: | ||
Weighted average number of common shares - basic | 112,163,674 | 112,923,719 |
Compensation-related shares | 0 | 382,490 |
Weighted average number of common shares - diluted | 112,163,674 | 113,306,209 |
Earnings per Common Share - Basic: | ||
Net (loss) income attributable to common shareholders excluding amounts attributable to unvested restricted shares (in dollars per share) | $ (0.10) | $ 0.67 |
Earnings per Common Share - Diluted: | ||
Net (loss) income attributable to common shareholders excluding amounts attributable to unvested restricted shares (in dollars per share) | $ (0.10) | $ 0.67 |
Supplemental Information to S78
Supplemental Information to Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Supplemental Cash Flow Information [Abstract] | ||
Interest paid, net of capitalized interest | $ 9,374 | $ 9,142 |
Interest capitalized | 180 | 78 |
Income taxes refunded, net | (3,227) | (57) |
(Decrease) increase in distributions payable on common shares | (1,283) | 59 |
Write-off of fully amortized debt issuance costs | 669 | 5,057 |
Increase in accrued capital expenditures | 6,605 | 433 |
Grant of nonvested shares and awards to employees and executives, net | 7,653 | 7,180 |
Issuance of common shares for Board of Trustees compensation | 557 | 1,240 |
Sale proceeds, net of closing costs | 0 | 252,407 |
Other assets | 0 | 5,803 |
Liabilities | 0 | (6,250) |
Proceeds from sale of properties | $ 0 | $ 251,960 |
Subsequent Events Dividends (De
Subsequent Events Dividends (Details) - $ / shares | Apr. 16, 2018 | Jan. 16, 2018 | Mar. 31, 2018 |
Common Shares | |||
Subsequent Event [Line Items] | |||
Dividend per Share/Unit (in dollars per share) | $ 0.45 | ||
6.375% Series I Preferred Shares | |||
Subsequent Event [Line Items] | |||
Dividend rate | 6.375% | ||
Dividend per Share (in dollars per share) | 0.40 | ||
6.3% Series J Preferred Shares | |||
Subsequent Event [Line Items] | |||
Dividend rate | 6.30% | ||
Dividend per Share (in dollars per share) | $ 0.39 | ||
Subsequent Event | Common Shares | |||
Subsequent Event [Line Items] | |||
Dividend per Share/Unit (in dollars per share) | $ 0.45 | ||
Subsequent Event | 6.375% Series I Preferred Shares | |||
Subsequent Event [Line Items] | |||
Dividend rate | 6.375% | ||
Dividend per Share (in dollars per share) | $ 0.40 | ||
Subsequent Event | 6.3% Series J Preferred Shares | |||
Subsequent Event [Line Items] | |||
Dividend rate | 6.30% | ||
Dividend per Share (in dollars per share) | $ 0.39 |