Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 27, 2016 | |
Entity Registrant Name | HERSHA HOSPITALITY TRUST | |
Entity Central Index Key | 1,063,344 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Class A Common Shares [Member] | ||
Entity Common Stock, Shares Outstanding | 42,427,282 | |
Class B Common Shares [Member] | ||
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Assets: | ||
Investment in Hotel Properties, Net of Accumulated Depreciation, Including Consolidation of Variable Interest Entity Assets of $82,043 and $82,787 | $ 1,682,992 | $ 1,831,119 |
Investment in Unconsolidated Joint Ventures | 17,244 | 10,316 |
Cash and Cash Equivalents | 236,102 | 27,955 |
Escrow Deposits | 15,875 | 19,204 |
Hotel Accounts Receivable, Net of Allowance for Doubtful Accounts of $8 and $12 | 8,467 | 9,465 |
Due from Related Parties | 14,061 | 6,243 |
Intangible Assets, Net of Accumulated Amortization of $3,926 and $3,951 | 14,372 | 13,389 |
Deposits on Hotel Acquisitions | 5,000 | |
Other Assets | 37,382 | 39,958 |
Total Assets | 2,026,495 | 1,962,649 |
Liabilities and Equity: | ||
Line of Credit | 27,000 | |
Unsecured Term Loan, Net of Unamortized Deferred Financing Costs (Note 5) | 508,633 | 547,780 |
Unsecured Notes Payable, Net of Unamortized Deferred Financing Costs (Note 5) | 50,551 | 50,525 |
Mortgages Payable, including Net Unamortized Premium and Unamortized Deferred Financing Costs, and Consolidation of Variable Interest Entity Debt of $51,687 and $52,509 (Note 5) | 494,606 | 544,659 |
Accounts Payable, Accrued Expenses and Other Liabilities | 58,685 | 59,226 |
Dividends and Distributions Payable | 14,785 | 16,515 |
Due to Related Parties | 18 | 8,789 |
Deferred Gain on Disposition of Hotel Assets | 81,333 | |
Total Liabilities | 1,208,611 | 1,254,494 |
Shareholders' Equity: | ||
Preferred Shares: $.01 Par Value, 29,000,000 Shares Authorized, 3,000,000 Series C and 7,700,000 Series D Shares Issued and Outstanding at June 30, 2016 and December 31, 2015, with Liquidation Preferences of $25 Per Share (Note 1) | 107 | 76 |
Accumulated Other Comprehensive Loss | (687) | (466) |
Additional Paid-in Capital | 1,118,190 | 1,086,259 |
Distributions in Excess of Net Income | (337,743) | (408,274) |
Total Shareholders' Equity | 780,291 | 678,039 |
Noncontrolling Interests (Note 1): | ||
Noncontrolling Interests - Common Units and LTIP Units | 39,683 | 31,876 |
Noncontrolling Interest - Consolidated Variable Interest Entity | (2,090) | (1,760) |
Total Noncontrolling Interests | 37,593 | 30,116 |
Total Equity | 817,884 | 708,155 |
Total Liabilities and Equity | 2,026,495 | 1,962,649 |
Class A Common Shares [Member] | ||
Shareholders' Equity: | ||
Common Shares | 424 | 444 |
Class B Common Shares [Member] | ||
Shareholders' Equity: | ||
Common Shares |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Assets: | ||
Consolidation of variable interest entity assets | $ 82,043 | $ 82,787 |
Hotel Accounts Receivable, Allowance for Doubtful Accounts | 8 | 12 |
Intangible Assets, Accumulated Amortization | 3,926 | 3,951 |
Liabilities and Equity: | ||
Consolidation of variable interest entity debt | $ 51,687 | $ 52,509 |
Shareholders' Equity: | ||
Preferred Shares - Outstanding (in shares) | 10,700,000 | 7,600,000 |
Series B, C and D Preferred Shares [Member] | ||
Shareholders' Equity: | ||
Preferred Shares - Par Value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Shares - Authorized (in shares) | 29,000,000 | 29,000,000 |
Preferred Shares - Liquidation Preference Value (in dollars per share) | $ 25 | $ 25 |
Series B Preferred Stock [Member] | ||
Shareholders' Equity: | ||
Preferred Shares - Issued (in shares) | 4,600,000 | |
Preferred Shares - Outstanding (in shares) | 4,600,000 | |
Series C Preferred Shares [Member] | ||
Shareholders' Equity: | ||
Preferred Shares - Issued (in shares) | 3,000,000 | 3,000,000 |
Preferred Shares - Outstanding (in shares) | 3,000,000 | 3,000,000 |
Series D Preferred Stock [Member] | ||
Shareholders' Equity: | ||
Preferred Shares - Issued (in shares) | 7,700,000 | |
Preferred Shares - Outstanding (in shares) | 7,700,000 | |
Class A Common Shares [Member] | ||
Shareholders' Equity: | ||
Common Shares - Par Value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Shares - Authorized (in shares) | 75,000,000 | 300,000,000 |
Common Shares - Issued (in shares) | 42,426,365 | 44,457,368 |
Common Shares - Outstanding (in shares) | 42,426,365 | 44,457,368 |
Class B Common Shares [Member] | ||
Shareholders' Equity: | ||
Common Shares - Par Value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Shares - Authorized (in shares) | 1,000,000 | 1,000,000 |
Common Shares - Issued (in shares) | 0 | 0 |
Common Shares - Outstanding (in shares) | 0 | 0 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Revenue: | |||||
Hotel Operating Revenues | $ 127,629 | $ 127,000 | $ 234,476 | $ 222,688 | |
Other Revenues | 94 | 30 | 100 | 54 | |
Total Revenues | 127,723 | 127,030 | 234,576 | 222,742 | |
Operating Expenses: | |||||
Hotel Operating Expenses | 65,900 | 64,134 | 131,618 | 121,489 | |
Hotel Ground Rent | 892 | 727 | 1,785 | 1,455 | |
Real Estate and Personal Property Taxes and Property Insurance | 7,949 | 8,222 | 17,105 | 16,492 | |
General and Administrative (including Share Based Payments of $1,873 and $1,655 and $4,279 and $3,194 for the three and six months ended June 30, 2016 and 2015, respectively) | 6,455 | 5,423 | 11,855 | 9,770 | |
Acquisition and Terminated Transaction Costs | 55 | 190 | 1,563 | 308 | |
Depreciation and Amortization | 18,495 | 18,328 | 38,555 | 36,581 | |
Total Operating Expenses | 99,746 | 97,024 | 202,481 | 186,095 | |
Operating Income | 27,977 | 30,006 | 32,095 | 36,647 | |
Interest Income | 78 | 51 | 124 | 99 | |
Interest Expense | (11,281) | (10,688) | (23,502) | (21,323) | |
Other Expense | 633 | 156 | 739 | 325 | |
Gain on Disposition of Hotel Properties | 95,276 | 95,276 | |||
Loss on Debt Extinguishment | (1,049) | (222) | (1,091) | (222) | |
Income Before Income from Unconsolidated Joint Venture Investments and Income Taxes | 110,368 | 18,991 | 102,163 | 14,876 | |
Income from Unconsolidated Joint Venture Investments | 1,521 | 526 | 1,307 | 252 | |
Income Before Income Taxes | 111,889 | 19,517 | 103,470 | 15,128 | |
Income Tax Benefit | 3,070 | 109 | 3,070 | 109 | |
Income from Continuing Operations | 114,959 | 19,626 | 106,540 | 15,237 | |
Net Income | 114,959 | 19,626 | 106,540 | 15,237 | |
(Income) Loss Allocated to Noncontrolling Interests | (4,748) | (405) | (4,061) | 38 | |
Preferred Distributions | (4,000) | (3,589) | (7,589) | (7,178) | |
Extinguishment of Issuance Costs Upon Redemption of Series B Preferred Shares | (4,021) | (4,021) | |||
Net Income Applicable to Common Shareholders | $ 102,190 | $ 15,632 | $ 90,869 | $ 8,097 | |
BASIC | |||||
Net Loss Applicable to Common Shareholders | $ 2.35 | $ 0.32 | $ 2.06 | $ 0.16 | |
DILUTED | |||||
Net Loss Applicable to Common Shareholders | $ 2.33 | $ 0.32 | $ 2.04 | $ 0.16 | |
Weighted Average Common Shares Outstanding: | |||||
Basic | 43,427,726 | 48,530,716 | 43,903,526 | 49,053,846 | |
Diluted | [1] | 43,863,577 | 49,043,914 | 44,384,969 | 49,576,322 |
[1] | Income (loss) allocated to noncontrolling interest in HHLP has been excluded from the numerator and Common Units and Vested LTIP Units have been omitted from the denominator for the purpose of computing diluted earnings per share since including these amounts in the numerator and denominator would have no impact. In addition, potentially dilutive common shares, if any, have been excluded from the denominator if they are anti-dilutive to income (loss) applicable to common shareholders. |
Consolidated Statements Of Ope5
Consolidated Statements Of Operations (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Potentially dilutive securities that have been excluded from earnings per share: | ||||
Share Based Payments | $ 1,873 | $ 1,655 | $ 4,279 | $ 3,194 |
Common Units and Vested LTIP Units [Member] | ||||
Potentially dilutive securities that have been excluded from earnings per share: | ||||
Potentially Dilutive Securities Excluded from the Denominator | 2,184,008 | 1,896,509 | 2,120,260 | 1,866,703 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Consolidated Statements Of Comprehensive Loss [Abstract] | ||||
Net Income | $ 114,959 | $ 19,626 | $ 106,540 | $ 15,237 |
Other Comprehensive Income (Loss) | ||||
Change in Fair Value of Derivative Instruments | (124) | 307 | (540) | 89 |
Less: Reclassification Adjustment for Change in Fair Value of Derivative Instruments Included in Net Income | 140 | (372) | 319 | (710) |
Other Comprehensive Income (Loss), Net of Tax, Total | 16 | (65) | (221) | (621) |
Comprehensive Income | 114,975 | 19,561 | 106,319 | 14,616 |
Less: Comprehensive (Income) Loss Attributable to Noncontrolling Interests | (4,748) | (405) | (4,061) | 38 |
Less: Preferred Distributions | (4,000) | (3,589) | (7,589) | (7,178) |
Less: Extinguishment of Issuance Costs Upon Redemption of Series B Preferred Shares | (4,021) | (4,021) | ||
Comprehensive Income Attributable to Common Shareholders | $ 102,206 | $ 15,567 | $ 90,648 | $ 7,476 |
Consolidated Statements Of Equi
Consolidated Statements Of Equity - USD ($) $ in Thousands | Common Shares [Member]Class A Common Shares [Member] | Common Shares [Member]Class B Common Shares [Member] | Common Shares [Member] | Preferred Shares [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Distributions in Excess of Net Earnings [Member] | Total Shareholders' Equity [Member] | Noncontrolling Interests Common Units And LTIP Units [Member] | Noncontrolling Interests Consolidated Variable Interest Entity [Member] | Total Noncontrolling Interests [Member] | Total |
Balance at Dec. 31, 2014 | $ 497 | $ 76 | $ 1,194,547 | $ (358) | $ (365,381) | $ 829,381 | $ 29,082 | $ (1,075) | $ 28,007 | $ 857,388 | ||
Balance (in shares) at Dec. 31, 2014 | 49,708,771 | 7,600,000 | 2,199,434 | |||||||||
Repurchase of Common Shares | (20) | (40,847) | (9,500) | (50,367) | (50,367) | |||||||
Dividends and Distributions declared: | ||||||||||||
Common Shares | (27,159) | (27,159) | (27,159) | |||||||||
Preferred Shares | (7,178) | (7,178) | (7,178) | |||||||||
Common Units | $ (959) | (959) | (959) | |||||||||
LTIP Units | $ (345) | (345) | (345) | |||||||||
Dividend Reinvestment Plan | 32 | 32 | 32 | |||||||||
Dividend Reinvestment Plan (in shares) | 477 | |||||||||||
Stock Based Compensation: | ||||||||||||
Grants | 459 | 459 | 459 | |||||||||
Grants (in shares) | 24,802 | 128,842 | ||||||||||
Amortization | 651 | 651 | $ 3,022 | 3,022 | 3,673 | |||||||
Change in Fair Value of Derivative Instruments | (621) | (621) | (621) | |||||||||
Net Income (loss) | 15,275 | 15,275 | 305 | (343) | (38) | 15,237 | ||||||
Balance at Jun. 30, 2015 | 477 | $ 76 | 1,154,842 | (979) | (393,943) | 760,473 | $ 31,105 | (1,418) | 29,687 | 790,160 | ||
Balance (in shares) at Jun. 30, 2015 | 47,769,899 | 7,600,000 | 2,328,276 | |||||||||
Repurchase of Common Shares (in shares) | (1,964,151) | |||||||||||
Balance at Dec. 31, 2015 | 444 | $ 76 | 1,086,259 | (466) | (408,274) | 678,039 | $ 31,876 | (1,760) | 30,116 | 708,155 | ||
Balance (in shares) at Dec. 31, 2015 | 44,457,368 | 7,600,000 | 2,319,301 | |||||||||
Repurchase of Common Shares | (20) | (39,105) | (2) | (39,127) | (39,127) | |||||||
Preferred Stock Issuance | ||||||||||||
Preferred Shares Offering, Net of Costs | $ 77 | 185,933 | 186,010 | 186,010 | ||||||||
Preferred Shares Offering, Net of Costs (in shares) | 7,700,000 | |||||||||||
Preferred Stock Redemption | $ (46) | (114,954) | (115,000) | (115,000) | ||||||||
Preferred Stock Redemption (in shares) | (4,600,000) | |||||||||||
Dividends and Distributions declared: | ||||||||||||
Common Shares | (24,357) | (24,357) | (24,357) | |||||||||
Preferred Shares | (7,589) | (7,589) | (7,589) | |||||||||
Common Units | $ (954) | (954) | (954) | |||||||||
LTIP Units | (882) | (882) | (882) | |||||||||
Dividend Reinvestment Plan | 31 | 31 | 31 | |||||||||
Dividend Reinvestment Plan (in shares) | 1,659 | |||||||||||
Stock Based Compensation: | ||||||||||||
Grants | (613) | (613) | $ 1,060 | 1,060 | 447 | |||||||
Grants (in shares) | 39,345 | 294,245 | ||||||||||
Amortization | 639 | 639 | $ 4,192 | 4,192 | 4,831 | |||||||
Change in Fair Value of Derivative Instruments | (221) | (221) | (221) | |||||||||
Net Income (loss) | 102,479 | 102,479 | 4,391 | (330) | 4,061 | 106,540 | ||||||
Balance at Jun. 30, 2016 | $ 424 | $ 107 | $ 1,118,190 | $ (687) | $ (337,743) | $ 780,291 | $ 39,683 | $ (2,090) | $ 37,593 | $ 817,884 | ||
Balance (in shares) at Jun. 30, 2016 | 42,426,365 | 10,700,000 | 2,613,546 | |||||||||
Repurchase of Common Shares (in shares) | (2,072,007) |
Consolidated Statements Of Equ8
Consolidated Statements Of Equity (Parenthetical) - $ / shares | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Dividends and Distributions declared: | ||
Common Shares, Dividends declared (in dollars per share) | $ 0.56 | $ 0.56 |
Common Units, Distributions declared (in dollars per share) | 0.56 | 0.56 |
Incentive Distribution, Distribution Per Unit | $ 0.56 | $ 0.56 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Operating Activities: | ||
Net Income | $ 106,540 | $ 15,237 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Gain on Disposition of Hotel Properties, Net | (95,276) | |
Deferred Taxes | (3,070) | (109) |
Depreciation | 39,705 | 36,368 |
Amortization | 670 | 922 |
Unamortized Deferred Fees Expensed in Debt Extinguishment | 1,091 | 4 |
Equity in (Income) Loss of Unconsolidated Joint Ventures | (1,307) | (252) |
Distributions from Unconsolidated Joint Ventures | 429 | 493 |
Loss Recognized on Change in Fair Value of Derivative Instrument | 43 | 67 |
Stock Based Compensation Expense | 4,279 | 3,194 |
(Increase) Decrease in: | ||
Hotel Accounts Receivable | 1,076 | (1,263) |
Escrows | 360 | 1,132 |
Other Assets | 3,412 | (4,952) |
Due from Related Parties | (7,818) | 233 |
(Decrease) Increase in: | ||
Due to Related Parties | (8,771) | (645) |
Accounts Payable, Accrued Expenses and Other Liabilities | 1,334 | 1,858 |
Net Cash Provided by Operating Activities | 42,697 | 52,287 |
Investing Activities: | ||
Purchase of Hotel Property Assets | (126,245) | (33,511) |
Deposits on Hotel Acquisitions | (1,000) | |
Capital Expenditures | (18,276) | (12,168) |
Cash Paid for Hotel Development Projects | (916) | |
Proceeds from Disposition of Hotel Properties | 12,446 | |
Net Changes in Capital Expenditure Escrows | 3,329 | 376 |
Proceeds from Contribution of Hotel Property Assets to Unconsolidated Joint Venture | 428,811 | |
Distributions from Unconsolidated Joint Ventures | 1,421 | 592 |
Net Cash Provided by (Used in) Investing Activities | 301,486 | (46,627) |
Financing Activities: | ||
(Repayment of) Proceeds from Borrowings Under Line of Credit, Net | (27,000) | 128,500 |
Repayment of Unsecured Term Loan Borrowing | (39,480) | |
Principal Repayment of Mortgages and Notes Payable | (64,710) | (121,113) |
Proceeds from Mortgages and Notes Payable | 80,750 | |
Cash Paid for Deferred Financing Costs | (363) | (394) |
Loss on Debt Extinguishment | (892) | |
Proceeds from Issuance of Preferred Shares, Net | 186,010 | |
Redemption of Series B Preferred Shares | (115,000) | |
Repurchase of Common Shares | (39,127) | (50,367) |
Settlement of Interest Rate Cap | (430) | |
Dividends Paid on Common Shares | (24,874) | (27,670) |
Dividends Paid on Preferred Shares | (8,846) | (7,178) |
Distributions Paid on Common Units and LTIP Units | (1,754) | (1,272) |
Net Cash (Used in) Provided by Financing Activities | (136,036) | 826 |
Net Increase in Cash and Cash Equivalents | 208,147 | 6,486 |
Cash and Cash Equivalents - Beginning of Period | 27,955 | 21,675 |
Cash and Cash Equivalents - End of Period | $ 236,102 | $ 28,161 |
Basis Of Presentation
Basis Of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
Basis Of Presentation [Abstract] | |
Basis Of Presentation | NOTE 1 – BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements of Hersha Hospitality Trust (“we,” “us,” “our” or the “Company”) have been prepared in accordance with U.S. generally accepted accounting principles (“US GAAP”) for interim financial information and with the general instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and notes required by US GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals), considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 201 6 or any future period. Accordingly, readers of these consolidated interim financial statements should refer to the Company’s audited financial statements prepared in accordance with US GAAP, and the related notes thereto, for the year ended December 31, 201 5 , which are included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 201 5 , as certain footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted from this report pursuant to the rules of the Securities and Exchange Commission. We are a self-administered Maryland real estate investment trust that was organized in May 1998 and completed our initial public offering in January 1999. Our common shares are traded on the New York Stock Exchange (the “NYSE”) under the symbol “HT.” We own our hotels and our investments in joint ventures through our operating partnership, Hersha Hospitality Limited Partnership (“HHLP”), for which we serve as the sole general partner. As of June 30, 2016, we owned an approximate 94.2% partnership interest in HHLP, including a 1.0% general partnership interest. Noncontrolling Interest We classify the noncontrolling interests of our consolidated variable interest entity, common units of limited partnership interest in HHLP (“Common Units”), and LTIP Units as equity. LTIP Units are a special class of limited partnership interest in the Operating Partnership that are convertible into Common Units under certain circumstances. The noncontrolling interest of Common Units totaled $39,683 as of June 30, 2016 and $31,876 as of December 31, 2015. As of June 30, 2016, there were 2,613,546 Common Units outstanding with a fair market value of $44,822 , based on the price per share of our common shares on the NYSE on such date. In accordance with the partnership agreement of HHLP, holders of these units may redeem them for cash unless we, in our sole and absolute discretion, elect to issue common shares on a one-for-one basis in lieu of paying cash. Net income or loss attributed to Common Units, as well as the net income or loss related to the noncontrolling interests of our consolidated variable interest entity, is included in net income or loss but excluded from net income or loss applicable to common shareholders in the consolidated statements of operations. Variable Interest Entities On Januar y 1, 2016, we adopted ASU No. 2015-02, Consolidation – Amendments to the Consolidation Analysis. We evaluated the application of ASU No. 2015-02 and concluded that no change was required for the accounting of our interests in less than wholly owned joint ventures. However, HHLP, our operating partnership, now meets the criteria as a variable interest entity. The Company’s most significant asset is its investment in HHLP, and consequently, substantially all of the Company’s assets and liabilities represent those assets and liabilities of HHLP. NOTE 1 – BASIS OF PRESENTATION (CONTINUED) Shareholders’ Equity On May 31, 2016, we completed a public offering of 7,700,000 (including 700,000 overallotment shares sold on June 14, 2016) 6.50% Series D Cumulative Redeemable Preferred Shares. These shares have a par value of $0.01 per share with a $25.00 liquidation preference per share. Net proceeds of the offering, after deducting the underwriting discount and the offering expenses payable to us, were approximately $186,010 . We utilized the net proceeds of the offering to redeem all outstanding 8.00% Series B Cumulative Redeemable Preferred Shares on June 8, 2016, and for general corporate purposes. On June 8, 2016, we redeemed all of our issued and outstanding 8.00% Series B Cumulative Redeemable Preferred Shares. The shares were redeemed at a per share redemption price of $25.00 together with accrued and unpaid dividends to the redemption date for an aggregate per share redemption price of $25.3722 . Dividends ceased accruing on the Series B Preferred Shares on June 8, 2016. Terms of the Series B, Series C, and Series D Preferred Shares outstanding at June 30, 2016 and December 31, 2015 are summarized as follows: Dividend Per Share Shares Outstanding Six Months Ended June 30, Series June 30, 2016 December 31, 2015 Aggregate Liquidation Preference Distribution Rate 2016 2015 Series B - 4,600,000 $ 115,000 8.000% $ 0.8722 $ 1.0000 Series C 3,000,000 3,000,000 $ 75,000 6.875% $ 0.8594 $ 0.8594 Series D 7,700,000 - $ 192,500 6.500% $ 0.2031 - Total 10,700,000 7,600,000 In May 2015, our Board of Trustees approved a reverse share split of our issued and outstanding common shares and Common Units and LTIP Units at a ratio of 1-for-4. This reverse share split converted every four issued and outstanding common shares into one common share. The reverse share split was effective as of 5:00 PM Eastern time on June 22, 2015. As a result of the reverse share split, the number of outstanding common shares was reduced from 191,079,951 to 47,769,961 shares and the number of outstanding Common Units and LTIP Units was reduced from 9,313,063 to 2,328,276 units. In October 2015, our Board of Trustees authorized a new share repurchase program for up to $100,000 of common shares which commenced upon the completion of the previous program. The new program will expire on December 31, 2016 unless extended by the Board of Trustees. We may seek Board of Trustee approval to increase the 2016 authorization. For the six months ended June 30, 2016, the Company repurchased 2,072,007 common shares for an aggregate purchase price of $39,127 . Upon repurchase by the Company, these common shares ceased to be outstanding and became authorized but unissued common shares. New Accounting Pronouncements In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Award Payment Accounting , which simplifies various aspects of how share-based payments are accounted for and presented in the financial statements. This standard requires companies to record all of the tax effects related to share-based payments through the income statement, allows companies to elect an accounting policy to either estimate the share based award forfeitures (and expense) or account for forfeitures (and expense) as they occur, and allows companies to withhold a percentage of the shares issuable upon settlement of an award up to the maximum individual statutory tax rate without causing the award to be classified as a liability. The new standard is effective for the Company on January 1, 2017. Early adoption is permitted. The Company is evaluating the effect that ASU No. 2016-09 will have on its consolidated financial statements and related disclosures. NOTE 1 – BASIS OF PRESENTATION (CONTINUED) We adopted ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs, on January 1, 2016. This standard requires debt issuance costs to be presented on the balance sheet as a direct deduction from the associated debt liability. Previously, debt issuance costs were recorded as an asset. The issuance costs will continue to be amortized over the life of the debt instrument and recorded in interest expense, as they were prior to the new standard. As part of this adoption, debt issuance costs are now included as an offset to the mortgages, unsecured term loan and unsecured notes payable line items on the consolidated balance sheets for all periods presented. For full reclassification amounts, see “Note 5 – Debt”. On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, 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. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for the Company on January 1, 2018. Early adoption is permitted, but not prior to the original effective date of January 1, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU No. 2014-09 will have on its consolidated financial statements and related disclosures. The Company continues to evaluate this standard and the impact it will have, if any, on our ongoing financial reporting. Reclassification Certain amounts in the prior year financial statements have been reclassified to conform to the current year presentation. |
Investment In Hotel Properties
Investment In Hotel Properties | 6 Months Ended |
Jun. 30, 2016 | |
Investment In Hotel Properties [Abstract] | |
Investment In Hotel Properties | NOTE 2 – INVESTMENT IN HOTEL PROPERTIES Investment in hotel properties c onsists of the following at June 30, 2016 and December 31, 201 5 : June 30, 2016 December 31, 2015 Land $ 463,969 $ 480,874 Buildings and Improvements 1,362,665 1,518,565 Furniture, Fixtures and Equipment 214,480 227,527 2,041,114 2,226,966 Less Accumulated Depreciation (358,122) (395,847) Total Investment in Hotel Properties $ 1,682,992 $ 1,831,119 Acquisitions We acquired the following properties during the six months ended June 30, 2016 : Hotel Acquisition Date Land Buildings and Improvements Furniture Fixtures and Equipment Other Intangibles Loan Costs Total Purchase Price Assumption of Debt Sanctuary Beach Resort, Marina, CA 1/28/2016 $ 20,014 $ 17,093 $ 2,369 $ - $ 198 $ 39,674 $ 14,750 * Hilton Garden Inn M Street, Washington, DC 3/9/2016 30,131 65,971 9,621 874 ** - 106,597 - TOTAL $ 50,145 $ 83,064 $ 11,990 $ 874 $ 198 $ 146,271 $ 14,750 *Assumption of debt includes a $50 premium resulting from the determination that the stated rate of interest is above market rates on the date of acquisition **Includes an intangible asset for a lease-in-place of $648 , advance bookings of $76 a nd franchise fees of $150 . Acquisition-related costs, such as due diligence, legal and accounting fees, are not capitalized or applied in determining the fair value of the above acquired assets. During the six months ended June 30, 2016 , we paid $1,424 in acquisition costs related to the above acquired assets. Included in the consolidated statement of operations for the three and six months ended June 30, 2016 are total revenues of $6,565 and $8,696 , and total net income of $1,793 and $2,547 for the hotels we acquired during the six months ended June 30, 2016 and consolidated since the date of acquisition of the hotels. Three Months Ended June 30, Six Months Ended June 30, 2016 2016 Hotel Revenue Net Income Revenue Net Income Sanctuary Beach Resort, Marina, CA $ 1,662 $ 175 $ 2,564 $ 438 Hilton Garden Inn M Street, Washington, DC 4,903 1,618 6,132 2,109 Total $ 6,565 $ 1,793 $ 8,696 $ 2,547 NOTE 2 – INVESTMENT IN HOTEL PROPERTIES (CONTINUED) Purchase and Sale Agreement In June 2016, we entered into a purchase and sale agreement to purchase the Envoy Hotel in Boston, MA from an unaffiliated seller for a total purchase price of $112,500 . The transaction closed on July 21, 2016. Accounting for this acquisition requires an allocation of the purchase price to the assets acquired and the liabilities assumed in the transaction at their re spective estimated fair values. In June 2016, we entered into a purchase and sale agreement to sell the Residence Inn, Framingham, MA and Residence Inn, Norwood, MA to an unaffiliated buyer for a purchase price of $47,000 . The transaction is expected to close in the third quarter of 2016, subject to customary closing conditions. Hotel Dispositions On May 3, 2016, the Company closed on the sale of Hyatt Place, King of Prussia, PA to an unaffiliated buyer for a total sales price of $13,000 with a gain on sale of approximately $5,402 . This hotel was acquired by the Company in August 2010. The operating results for this hotel are included in net income as shown in the consolidated statements of operations for the three and six months ended June 30, 2016 and 2015 as disposition of this hotel does not represent a strategic shift in our business. On February 4, 2016, we announced the signing of asset purchase and contribution agreements (the “Contribution Agreements”) with Cindat Manhattan Hotel Portfolio (US) LLC (“Cindat”) to form a joint venture, Cindat Hersha Owner JV, LLC (the “Owner JV”), which initially invests in seven of our limited service hotels in Manhattan (The “JV Properties”). This transaction was consummated on April 29, 2016. The Contribution Agreements valued the JV Properties at $543,500 . Cindat contributed $354,550 and received a 70% senior common equity interest in Owner JV. We contributed the JV Properties to Owner JV and received $354,550 in cash and a preferred equity interest initially valued at $37,000 . In addition, we retained a 30% junior common equity interest in Owner JV. We contributed $12,239 and Cindat contributed an aggregate of $14,105 in working capital and closing costs for the formation of Owner JV, and finance costs related to debt originated on the JV Properties by Owner JV. In addition, we incurred additional closing costs associated with the contribution of the JV Properties to Owner JV of $10,653 . Prior to the contribution to Owner JV, our basis in the JV Properties was $264,658 . Our preferred equity and junior common equity interest in Owner JV was initially recorded at $104,248 which represents our retained interest in the JV Properties at our basis prior to contribution and additional contributions made for the formation of Owner JV. Please refer to “Note 3 – Investment in Unconsolidated Joint Ventures” more information about the joint venture with Cindat. Due to our continuing interest in the JV Properties, gain recognized on the properties is limited to cash received less the basis of the properties contributed. As a result, we recognized a gain on the disposition of hotel properties of $89,892 and recorded a deferred gain of $81,333 , which is recorded as a liability in the consolidated balance sheets. The deferred gain will be recognized as income in a future period if an event occurs that changes our retained interest in the JV Properties. Proceeds received from the contribution of the JV Properties were used to reduce our consolidated mortgage debt by $55,103 , our line of credit balance by $194,550 and our unsecured term loan balance by $39,480 . Any remaining proceeds are to be used for general corporate purposes, including, but not limited to, the acquisition of hotel properties, the repurchase of our common shares and future distributions to shareholders. We did no t have any hotel dispositions during the three and six months ended June 30, 2015. NOTE 2 – INVESTMENT IN HOTEL PROPERTIES (CONTINUED) Pro Forma Results (Unaudited) The following condensed pro forma financial data for the three and six months ended June 30, 2016 and 2015 are presented as if the hotels acquired by the Company in 2016 and 2015 had been acquired as of January 1, 2015 and 2014, respectively. The condensed pro forma financial data are not necessarily indicative of what actual results of operations of the Company would have been for the periods presented assuming the acquisitions had been consummated on January 1, 2015 and 2014, nor do they purport to represent the results of operations for future periods. Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Pro Forma Total Revenues $ 127,723 133,796 $ 238,031 $ 236,574 Pro Forma Net Income 114,968 21,364 108,780 16,698 Income Allocated to Noncontrolling Interest (4,748) (470) (4,164) (16) Preferred Distributions (4,000) (3,589) (7,589) (7,178) Extinguishment of Issuance Costs Upon Redemption of Series B Preferred Shares (4,021) - (4,021) - Pro Forma Income Applicable to Common Shareholders $ 102,199 $ 17,305 $ 93,006 $ 9,504 Pro Forma Income Applicable to Common Shareholders per Common Share Basic $ 2.35 $ 0.36 $ 2.12 $ 0.19 Diluted $ 2.33 $ 0.35 $ 2.10 $ 0.19 Weighted Average Common Shares Outstanding Basic 43,427,726 48,530,716 43,903,526 49,053,846 Diluted 43,863,577 49,043,914 44,384,969 49,576,322 |
Investment In Unconsolidated Jo
Investment In Unconsolidated Joint Ventures | 6 Months Ended |
Jun. 30, 2016 | |
Investment In Unconsolidated Joint Ventures [Abstract] | |
Investment In Unconsolidated Joint Ventures | NOTE 3 – INVESTMENT IN UNCONSOLIDATED JOINT VENTURES As of June 30, 2016 and December 31, 201 5, our investment in unconsolidated joint ventures consisted of the following: Percent Preferred June 30, December 31, Joint Venture Hotel Properties Owned Return 2016 2015 SB Partners, LLC Holiday Inn Express, South Boston, MA 50.0% N/A $ 982 $ 795 Hiren Boston, LLC Courtyard by Marriott, South Boston, MA 50.0% N/A 3,034 4,499 Mystic Partners, LLC Hilton and Marriott branded hotels in CT 8.8%-66.7% 8.5% non-cumulative 4,864 5,022 Cindat Hersha Owner JV, LLC Hilton and IHG branded hotels in NYC 30.0% * 8,364 - $ 17,244 $ 10,316 *See explanation below of the Cindat Hersha Owner JV, LLC (“Owner JV”) for more information on the preferred return provisions of this joint venture. On April 29, 2016, we entered into two limited liability company agreements with Cindat, which formed Owner JV and Cindat Hersha Lessee JV, LLC (“Lessee JV”), for the purpose of owning and operating hotel properties initially consisting of the JV Properties. All hotel properties owned by Owner JV are leased to Lessee JV. Our interest in Owner JV is held by our operating partnership, HHLP, while our interest in Lessee JV is held by our wholly owned taxable REIT subsidiary (“TRS”), 44 New England Management Company (“44 New England”). As described in “Note 2 – Investment in Hotel Properties” the Contribution Agreements valued the JV Properties at $543,500. In accordance with the Contribution Agreements, Cindat contributed $354,550 in cash, in exchange for a 70.0% senior common equity interest in Owner JV. We contributed the JV Properties to Owner JV and received $354,550 in cash, a preferred equity interest initially valued at $37,000, and a 30% junior common equity interest in Owner JV. In addition, Cindat, contributed $14,105 and we contributed $12,239 for working capital and closing costs for the formation of Owner JV and for finance costs related to debt originated on the JV Properties by Owner JV. Of the $12,239 in additional funds contributed by us, $6,045 was attributed to our junior common equity interest and $6,194 was attributed to our preferred equity interest. We also incurred $361 of costs related to our contribution which is included in our investment in unconsolidated joint ventures as outside basis and will be amortized over the life of the venture. Prior to the contribution to Owner JV, our basis in the JV Properties was $264,658. Our preferred equity and junior common equity interest in Owner JV was initially recorded at $104,248 which represents our retained interest in the JV Properties at our basis prior to contribution and additional contributions made for the formation of Owner JV. The difference between our interest in the fair value of the assets contributed to Owner JV and our basis prior to contribution is $96,941 , which will be amortized over the life of the underlying assets. At closing, mortgage debt of $285,000 and mezzanine debt of $50,000 was placed on the JV Properties. Owner JV distributed proceeds of $323,793 from the debt originated, of which $226,655 was distributed to Cindat and $97,138 was distributed to us, reducing our investment in Owner JV accordingly. Cash available for distribution will be distributed (1) to us until we receive a 9% annual rate of return on our $43,194 preferred equity interest, (2) then to Cindat until they receive a 10% return on their remaining $142,000 senior common equity interest and (3) then to us until we receive an 8% return on our $60,857 junior common equity interest. Any cash available for distribution remaining will be split 30% to us and 70% to Cindat. Cindat’s senior common equity return is reduced by 0.5% annually for 4 years following the closing until it is set at a rate of 8% for the remainder of the life of the joint venture. The Owner JV is under an Asset Management Agreement with us and Cindat whereby it is provided asset management services. Fees for these services are calculated as 1.0% of operating revenues, of which we are entitled to 30% which we recognize as income in other revenues on the consolidated statement of operations. NOTE 3 – INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (CONTINUED) Income or loss from our unconsolidated joint ventures is allocated to us and our joint venture partners consistent with the allocation of cash distributions in accordance with the joint venture agreements. Any difference between the carrying amount of these investments and the underlying equity in net assets is amortized over the expected useful lives of the properties and other intangible assets. Income recognized during the three and six months ended June 30, 2016 and 201 5 , for our investments in unconsolidated joint ventures is as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 SB Partners, LLC $ 326 $ 287 $ 287 $ 198 Hiren Boston, LLC 379 316 285 207 Mystic Partners, LLC (76) (77) (157) (153) Cindat Hersha Owner JV, LLC 892 - 892 - Income from Unconsolidated Joint Venture Investments $ 1,521 $ 526 $ 1,307 $ 252 The following tables set forth the total assets, liabilities, equity and components of net income or loss, including the Company’s share, related to the unconsolidated joint ventures disc ussed above as of June 30, 2016 and December 31 , 2015 and for the three and six months ended June 30, 2016 and 201 5 . Balance Sheets June 30, December 31, 2016 2015 Assets Investment in Hotel Properties, Net $ 652,905 $ 105,354 Other Assets 37,513 15,558 Total Assets $ 690,418 $ 120,912 Liabilities and Equity Mortgages and Notes Payable $ 444,392 $ 113,532 Other Liabilities 24,911 30,575 Equity: Hersha Hospitality Trust 126,224 22,698 Joint Venture Partner(s) 94,891 (45,893) Total Equity 221,115 (23,195) Total Liabilities and Equity $ 690,418 $ 120,912 Statements of Operations Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Room Revenue $ 31,578 $ 15,939 $ 43,958 $ 28,621 Other Revenue 6,789 6,131 11,492 11,199 Operating Expenses (20,681) (14,313) (33,565) (27,506) Lease Expense (276) (276) (581) (551) Property Taxes and Insurance (2,316) (720) (3,077) (1,475) General and Administrative (2,116) (1,333) (3,348) (2,738) Depreciation and Amortization (3,335) (1,572) (5,009) (3,138) Interest Expense (4,658) (1,635) (6,264) (3,257) Acquisition Costs (1,499) - (1,499) - Loss allocated to Noncontrolling Interests (72) (62) (40) (86) Net Income $ 3,414 $ 2,159 $ 2,067 $ 1,069 NOTE 3 – INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (CONTINUED) The following table is a reconciliation of the Company’s share in the unconsolidated joint ventures’ equity to the Company’s investment in the unconsolidated joint ventures as presented on the Com pany’s balance sheets as of June 30, 2016 and December 31, 201 5 . June 30, December 31, 2016 2015 Company's share of equity recorded on the joint ventures' financial statements $ 126,224 $ 22,698 Adjustment to reconcile the Company's share of equity recorded on the joint ventures' financial statements to our investment in unconsolidated joint ventures (1) (108,980) (12,382) Investment in Unconsolidated Joint Ventures $ 17,244 $ 10,316 (1) Adjustment to reconcile the Company's share of equity recorded on the joint ventures' financial statements to our investment in unconsolidated joint ventures consists of the following: · cu mul ative impairment of the Company’s investment in joint ventures not reflected on the joint ventures' financial statements; · the difference between the Company’s basis in the investment in joint ventures and the equity recorded on the joint ventures' financial statements; and · accumulated amortization of the Company’s equity in joint ventures that reflects the difference in the Company’s portion of the fair value of joint ventures' assets on the date of our investment when compared to the carrying value of the assets recorded on the joint ventures ’ financial statements (this excess or deficit investment is amortized over the life of the properties, and the amortization is included in Income (Loss) from Unconsolidated Joint Venture Investments on the Company’s consolidated statement of operations). |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2016 | |
Other Assets [Abstract] | |
Other Assets | NOTE 4 – OTHER ASSETS Other Assets Other Assets co nsisted of the following at June 30, 2016 and December 31, 201 5 : June 30, 2016 December 31, 2015 Investment in Statutory Trusts 1,548 1,548 Prepaid Expenses 9,096 14,434 Deferred Tax Asset, Net of Valuation Allowance of $804 17,660 14,590 Other 9,078 9,386 $ 37,382 $ 39,958 Investment in Statutory Trusts - We have an investment in the common stock of Hersha Statutory Trust I and Hersha Statutory Trust II. Our investment is accounted for under the equity method. Prepaid Expenses - Prepaid expenses include amounts paid for property tax, insurance and other expenditures that will be expensed in the next twelve months. Deferred Tax Asset - We have approximately $17,660 of net deferred tax assets as of June 30, 2016 . We have considered various factors, including future reversals of existing taxable temporary differences, future projected taxable income and tax planning strategies in determining a valuation allowance for our deferred tax assets, and we believe that it is more likely than not that we will be able to realize the $17,660 of net deferred tax assets in the future. Deposits on Hotel Acquisitions As of December 31, 2015, we had $5,000 in interest bearing deposits related to the future acquisition of the Sanctuary Beach Resort, located in Marina, California. We completed the acquisition of this property on January 28, 2016 (See “Note 2 – Investment in Hotel Properties” for more information). As of June 30, 2016, we had no deposits on hotel acquisitions. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2016 | |
Debt [Abstract] | |
Debt | NOTE 5 – DEBT Mortgages Mortgages payable at June 30, 2016 and December 31, 2015 consisted of the following: June 30, 2016 December 31, 2015 Mortgage Indebtedness $ 495,026 $ 545,036 Net Unamortized Premium 2,863 3,503 Net Unamortized Deferred Financing Costs (3,283) (3,880) $ 494,606 $ 544,659 Net Unamortized Deferred Financing Costs associated with entering into mortgage indebtedness are deferred and amortized over the life of the mortgages. Net Unamortized Premiums are al so amortized over the remaining life of the loans. Mortgage indebtedness balances are subject to fixed and variable interest rates, which ranged from 2.70% to 6.50% as of June 30, 2016 . Aggregate interest expense incurred under the mortgage loans payable totaled $5,720 and $6,829 and $11,990 and $13,968 during the three and six months ended June 30, 2016 and 201 5 , respectively. Our mortgage indebtedness contains various financial and non-financial covenants customarily found in secured, non-recourse financing arrangements. Our mortgage loans payable typically require that specified debt service coverage ratios be maintained with respect to the financed properties before we can exercise certain rights under the loan agreements relating to such properties. If the specified criteria are not satisfied, the lender may be able to escrow cash flow generated by the property securing the applicable mortgage loan. We have determined that certain debt service coverage ratio covenants contained in the loan agreements securing t wo of our hotel properties were not met as of June 30, 2016. Pursuant to these loan agreements, the lender has elected to escrow the operating cash flow for these properties. However, these covenants do not constitute an event of default for these loan agreements. As of June 30, 2016 , the maturity dates for the outstanding mortgage loans ranged from October 2016 to February 2024. Subordinated Notes Payable We have two junior subordinated notes payable in the aggregate amount of $51,548 to the Hersha Statutory Trusts pursuant to indenture agreements which will mature on July 30, 2035 , but may be redeemed at our option, in whole or in part, prior to maturity in accordance with the provisions of the indenture agreements. The $25,774 of notes issued to each of Hersha Statutory Trust I and Hersha Statutory Trust II bear interest at a variable rate of LIBOR plus 3% per annum. This rate resets two business days prior to each quarterly payment. The face value of the notes payable is offset by $997 and $1,023 as of June 30, 2016 and December 31, 2015, respectively, in net deferred financing costs incurred as a result of entering into these indentures. The deferred financing costs are amortized over the life of the notes payable. The weighted average interest rate on our two junior subordinated notes payable was 3.71% and 3.31% and 3.63% and 3.28% during the three and six months ended June 30, 2016 and 2015, respectively. Interest expense in the amount of $ 478 and $426 and $937 and $845 was recorded for the three and six months ended June 30, 2016 and 201 5 , respectively. Credit Facilities We maintain a senior unsecured credit agreement with Citigroup Global Markets Inc. and various other lenders. The credit agreement provides for a $500,000 senior unsecured credit facility (“Credit Facility”) consisting of a $250,000 senior unsecured revolving line of credit (“Line of Credit”), and a $250,000 senior unsecured term loan (“First Term Loan”). The Credit Facility expires on February 28, 2018 , and, provided no event of default has occurred, we may request that the lenders renew the credit facility for an additional one -year period. The Credit Facility is also expandable to $850,000 at our request, subject to the satisfaction of certain conditions. NOTE 5 – DEBT (CONTINUED) On August 10, 2015, we enter ed into an additional $300,000 senior unsecured term loan agreement (“Second Term Loan”) with Citigroup Global Markets Inc. and various other lenders. The Second Term Loan expires on August 10, 2020 . The amount that we can borrow at any given time under our Credit Facility and Second Term Loan is governed by certain operating metrics of designated unencumbered hotel properties known as b orrowing base assets. As of June 30, 2016 , the following hotel properties were borrowing base assets: - Holiday Inn Express, Cambridge, MA - Hampton Inn, Washington, DC - Residence Inn, Norwood, MA - Nu Hotel, Brooklyn, NY - Residence Inn, Framingham, MA - The Rittenhouse Hotel, Philadelphia, PA - Sheraton, Wilmington South, DE - The Boxer, Boston, MA - Sheraton Hotel, JFK Airport, New York, NY - Courtyard, San Diego, CA - Winter Haven, Miami, FL - Residence Inn, Coconut Grove, FL - Hampton Inn, Pearl Street, NY - Blue Moon, Miami, FL - Residence Inn, Greenbelt, MD - Parrot Key Resort, Key West, FL - Courtyard, Miami, FL - Courtyard, Brookline, MA - Residence Inn, Tyson's Corner, VA - TownePlace Suites, Sunnyvale, CA - Ritz Carlton, Washington, DC - Hawthorne Suites, Franklin, MA - Hampton Inn, Philadelphia, PA - Hilton Garden Inn, M Street, Washington, DC The interest rate for borrowings under the Line of Credit and term loans are based on a pricing grid with a range of one month U.S. LIBOR plus a spread. The following table summarizes the balances outstanding and interest rate spread for each borrowing: Outstanding Balance Borrowing Spread June 30, 2016 December 31, 2015 Line of Credit 1.70% to 2.45% $ - $ 27,000 First Term Loan 1.60% to 2.35% 210,520 250,000 Second Term Loan 1.50% to 2.25% 300,000 300,000 We maintain an interest rate swap , with a $150,000 notional amount, which effectively fix es the interest rate on $150,000 of th e First Term Loan at a blended rate of 2.914% . See “Note 7 – Fair Value Measurements and Derivative Instruments” for more information. The balance of the First Term Loan and Second Term Loan is offset by $1,887 and $2, 220 in net deferred financing costs as of June 30, 2016 and December 31, 2015, respectively. These costs were incurred as a result of originating the term loan borrowings and are amortized over the life of these loans. The Credit Facility and the Second Term Loan agreements include certain financial covenants and require that we maintain: (1) a minimum tangible net worth (calculated as total assets, plus accumulated depreciation, less total liabilities, intangibles and other defined adjustments) of $900,000 , plus an amount equal to 75% of the net cash proceeds of all issuances and primary sales of equity interests of the parent guarantor or any of its subsidiaries consummated following the closing date; (2) annual distributions not to exceed 95% of adjusted funds from operations; and (3) certain financial ratios, including the following: · a fixed charge coverage ratio of not less than 1.50 to 1.00; · a maximum leverage ratio of not more than 60%; and · a maximum secured debt leverage ratio of 45% . The Company is in compliance with each of the covenants listed above as of June 30, 2016. As of June 30, 2016 , our remaining borrowing capacity under the Credit Facility and the Second Term Loan was $246,710 based on the borrowing base assets at June 30, 2016 . NOTE 5 – DEBT (CONTINUED) The Company recorded interest expense of $4,083 and $ 2,238 and $8,563 and $3,980 related to borrowings drawn on the Credit Facility and the Second Term Loan for the three and six months ended June 30, 2016 and 2015, respectively. The weighted average interest rate on the Credit Facility and the Second Term Loan was 2.78% and 2.75% and 2.79% and 2.76% for the three and six months ended June 30, 2016 and 2015, respectively . Capitalized Interest We utilize cash, mortgage debt and our Line of Credit to finance on-going capital improvement projects at our hotels. Interest incurred on mortgages and the Line of Credit that relates to our capital improvement projects is capitalized through the date when the assets are placed in service. For the three and six months ended June 30, 2016 and 2015, we did not have any on-going capital projects which would require us to capitalize interest. Deferred Financing Costs As noted above, costs associated with entering into mortgages, notes payable and our credit facilities are deferred and amortized over the life of the debt instruments. The deferred costs related to mortgages and term loans and unsecured notes payable are presented as reductions in the respective debt balances. Amortization of deferred costs for the three and six months ended June 30, 2016 and 2015 was $ 640 and $657 and $1,300 and $1,377 , respectively . New Debt/Refinance As previously mentioned in “Note 3 – Investment in Unconsolidated Joint Ventures,” we repaid in full the two mortgages related to the Hampton Inn Herald Square, NY and Hampton Inn Chelsea, NY, two properties contributed to the joint venture with Cindat. The mortgage debt secured by Hampton Inn Herald Square had an original balance of $26,500 and was due to mature on May 1, 2016. The mortgage debt secured by Hampton Inn Chelsea had an original balance of $36,000 and was due to mature on October 1, 2016. In addition, due to our contribution of certain of the borrowing base properties to the Cindat joint venture we were required to pay down $39,480 of the First Term Loan. We incurred a total of $1,049 in expense related to the payment of fees to extinguish debt and related to unamortized deferred financing costs associated with the mortgage debt and term loan repayments. On February 29, 2016 , we repaid in full outstanding mortgage debt with an original principal balance of $8,500 secured by t he Hawthorn Suites, Franklin, MA. The loan was due to mature o n May 1, 2016 , and we incurred approximately $ 42 i n expense related to unamortized deferred financing costs and fees. On June 10, 2015, we repaid in full outstanding mortgage debt with an original principal balance of $55,000 secured by the Hyatt Union Square, NY and simultaneously entered into a new mortgage obligation of $55,750 , incurring a loss on debt extinguishment of approximately $212 . The new mortgage debt bears interest at a variable rate of one month U.S dollar LIBOR plus 2.30% and matures on June 10, 2019. Also on June 10, 2015, we entered into an interest rate cap that matures on June 10, 2019 that effectively limits the interest at 3.00% per annum. See “Note 7 – Fair Value Measurements and Derivative Instruments” for more information on the interest rate cap. On April 10, 2015, we repaid in full outstanding mortgage debt with an original principal balance of $38,913 secured by the Courtyard by Marriott, Brookline, MA. The loan was due to mature in July 2015, and we incurred approximately $10 in expense in unamortized deferred financing costs and fees. |
Commitments And Contingencies A
Commitments And Contingencies And Related Party Transactions | 6 Months Ended |
Jun. 30, 2016 | |
Commitments And Contingencies And Related Party Transactions [Abstract] | |
Commitments And Contingencies And Related Party Transactions | NOTE 6 – COMMITMENTS AND CONTINGENCIES AND RELATED PARTY TRANSACTIONS Management Agreements Our wholly-owned TRS, 44 New England, and certain of our joint venture entities engage eligible independent contractors in accordance with the requirements for qua lification as a REIT under the I nternal R evenue C ode of 1986, as amended, including Hersha Hospitality Management Limited Partnership (“ HHMLP ”) , as the property managers for hotels it leases from us pursuant to management agreements. HHMLP is owned, in part, by certain executives and trustees of the Company. Our management agreements with HHMLP provide for five -year terms and are subject to early termination upon the occurrence of defaults and certain other events described therein. As required under the REIT qualification rules, HHMLP must qualify as an “eligible independent contractor” during the term of the management agreements. Under the management agreements, HHMLP generally pays the operating expenses of our hotels. All operating expenses or other expenses incurred by HHMLP in performing its authorized duties are reimbursed or borne by our TRS to the extent the operating expenses or other expenses are incurred within the limits of the applicable approved hotel operating budget. HHMLP is not obligated to advance any of its own funds for operating expenses of a hotel or to incur any liability in connection with operating a hotel. Management agreements with other unaffiliated hotel management companies have terms that are consistent with those typically used by other hotel management companies . For its services, HHMLP receives a base management fee and, if a hotel exceeds certain thresholds, an incentive management fee. The base management fee for a hotel is due monthly and is equal to 3% of gross revenues associated with each hotel managed for the related month. The incentive management fee, if any, for a hotel is due annually in arrears on the ninetieth day following the end of each fiscal year and is based upon the financial performance of the hotels. For the three and six months ended June 30, 2016 and 2015, base management fees incurred totaled $3, 584 , and $3,676 and $6,609 and $6,376 , respectively, and are recorded as Hotel Operating Expenses. For the three and six months ended June 30, 2016 and 2015, we did not incur incentive management fees. Franchise Agreements Our branded hotel properties are operated under franchise agreements assumed by the hotel property lessee. The franchise agreements have 10 to 20 year terms, but may be terminated by either the franchisee or franchisor on certain anniversary dates specified in the agreements. The franchise agreements require annual payments for franchise royalties, reservation, and advertising services, and such payments are based upon percentages of gross room revenue. These payments are paid by the hotels and charged to expense as incurred. Franchise fee expenses for the three and six months ended June 30, 2016 and 201 5 were $6,753 and $7,642 and $12,647 and $ 13,231 , respectively , and are recorded in Hotel Operating Expenses. The initial fees incurred to enter into the franchise agreements are amortized over the life of the franchise agreements. Accounting and Information Technology Fees Each of the wholly-owned hotels and consolidated joint venture hotel properties managed by HHMLP incurs a monthly accounting and information technology fee. Monthly fees for accounting services are between $2 and $3 per property and monthly information technology fees range from $1 to $2 per property. For the three and six months ended June 30, 2016 and 2015, the Company incurred accounting fees of $ 392 and $361 and $748 and $721 , respectively. For the three and six months ended June 30, 2016 and 2015, the Company incurred information technology fees of $1 41 and $107 and $231 and $213 , respectively. Accounting fees and information technology fees are included in Hotel Operating Expenses. Capital Expenditure Fees HHMLP charges a 5% fee on all capital expenditures and pending renovation projects at the properties as compensation for procurement services related to capital expenditures and for project management of renovation projects. For the three and six months ended June 30, 2016 and 2015, we incurred fees of $ 282 and $236 and $729 and $382 , respectively , which were capitalized with the cost of fixed asset additions. NOTE 6 – COMMITMENTS AND CONTINGENCIES AND RELATED PARTY TRANSACTIONS (CONTINUED) Acquisitions from Affiliates We have entered into an option agreement with certain of our officers and trustees such that we obtain a right of first refusal to purchase any hotel owned or developed in the future by these individuals or entities controlled by them at fair market value. This right of first refusal would apply to each party until one year after such party ceases to be an officer or trustee of the Company. Our Acquisition Committee of the Board of Trustees is comprised solely of independent trustees, and the purchase prices and all material terms of the purchase of hotels from related parties are approved by the Acquisition Committee. Hotel Supplies For the three and six months ended June 30, 2016 and 2015, we incurred charges for hotel supplies of $ 39 and $96 , and $60 and $139 , respectively. For the three and six months ended June 30, 2016 and 2015, we incurred charges for capital expenditure purchases of $432 and $1,434 and $1,314 and $2,794 , respectively. These purchases were made from Hersha Purchasing and Design, a hotel supply company owned, in part, by certain executives and trustees of the Company. Hotel supplies are expensed and included in Hotel Operating Expenses on our consolidated statements of operations, and capital expenditure purchases are included in investment in hotel properties on our consolidated balance sheets. Approximately $7 and $1 is included in accounts payable at June 30, 2016 and December 31, 2015, respectively. Due From Related Parties The due from related parties balance as of June 30, 2016 and December 31, 2015 was approximately $14,061 and $6, 243 , respectively. The balances primarily consisted of working capital deposits made to HHMLP and related party service providers. Due to Related Parties The balance due to related parties as of June 30, 2016 and December 31, 2015 was approximately $18 and $8,789 , respectively. The balances consisted of amounts payable to HHMLP and related party service providers for administrative, management, and benefit related fees. Hotel Ground Rent For the three and six months ended June 30, 2016 and 2015, we incurred $ 892 and $727 and $1,785 and $1,455 , respectively , of rent expense payable pursuant to ground leases related to certain hotel properties. |
Fair Value Measurements And Der
Fair Value Measurements And Derivative Instruments | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Measurements And Derivative Instruments [Abstract] | |
Fair Value Measurements And Derivative Instruments | NOTE 7 – FAIR VALUE MEASUREMENTS AND DERIVATIVE INSTRUMENTS Fair Value Measurements Our determination of fair value measurements are based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, we utilize a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liabilities, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. As of June 30, 2016 , the Company’s derivative instruments represented the only financial instruments measured at fair value. Currently, the Company uses derivative instruments, such as interest rate swaps and caps, to manage its interest rate risk. The valuation of these instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs. We incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts and guarantees. Although we have determined that the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by us and the counterparties. However, as of June 30, 2016 we have assessed the significance of the effect of the credit valuation adjustments on the overall valuation of our derivative positions and have determined that the credit valuation adjustments are not significant to the overall valuation of our derivatives. As a result, we have determined that our derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. NOTE 7 – FAIR VALUE MEASUREMENTS AND DERIVATIVE INSTRUMENTS (CONTINUED) Derivative Instruments Estimated Fair Value Hedged Debt Type Strike Rate Index Effective Date Maturity Date Notional Amount June 30, 2016 December 31, 2015 Courtyard, LA Westside, Culver City, CA Cap 3.000% 1-Month LIBOR + 3.00% October 27, 2015 September 29, 2017 35,000 13 19 Hyatt, Union Square, New York, NY Cap 3.000% 1-Month LIBOR + 2.30% June 10, 2015 June 10, 2019 55,750 15 136 Hyatt, Union Square, New York, NY* Cap 2.000% 1-Month LIBOR + 4.19% April 9, 2013 April 9, 2016 55,000 - - Unsecured Term Loan Swap 0.545% 1-Month LIBOR + 2.35% November 5, 2012 November 5, 2016 100,000 (29) 84 Unsecured Term Loan Swap 0.600% 1-Month LIBOR + 2.35% December 18, 2012 November 5, 2016 50,000 (24) 18 Duane Street Hotel, New York, NY Swap 0.933% 1-Month LIBOR + 4.50% February 1, 2014 February 1, 2017 9,071 (24) (21) Hilton Garden Inn 52nd Street, New York, NY Swap 1.152% 1-Month LIBOR + 2.90% June 1, 2015 February 21, 2017 44,775 (195) (215) $ (244) $ 21 * On June 10, 2015, we refinanced the debt associated with Hyatt Union Square. As a result, we entered into an interest rate cap with a strike rate of 3.000% . The original interest rate cap matured on April 9, 2016 and was replaced by the aforementioned interest rate cap with a strike rate of 3.000%. The fair value of certain swaps and our interest rate caps is included in other assets at June 30, 2016 and December 31, 201 5 and the fair value of certain of our interest rate swaps is included in accounts payable, accrued expenses and other liabilities at June 30, 2016 and December 31, 201 5 . The net change in fair value of derivative instruments designated as cash flow hedges was a gain of $1 6 and a loss of $65 for the three months ended June 30, 2016 and 2015, respectively, and a loss of $221 and $621 for the six months ended June 30, 2016 and 2015, respectively. These unrealized gains/losses were reflected on our consolidated balance sheet in accumulated other comprehensive income/loss. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate derivative. The change in net unrealized gains/losses on cash flow hedges reflects a reclassification of $1 40 and $372 , and $319 and $710 of net unrealized gains/losses from accumulated other comprehensive income as an increase /decrease to interest expense for the three and six months ended June 30, 2016 and 2015, respectively. For the next twelve months ending June 30, 2017 , the Company estimates that an additional $304 will be reclassified as an increase to interest expense. Fair Value of Debt The Company estimates the fair value of its fixed rate debt and the credit spreads over variable market rates on its variable rate debt by discounting the future cash flows of each instrument at estimated market rates or credit spreads consistent with the maturity of the debt obligation with similar credit policies. Credit spreads take into consideration general market conditions and maturity. The inputs utilized in estimating the fair value of debt are classified in Level 2 of the fair value hierarchy. As of June 30, 2016 , the carrying value and estimated fair value of the Company’s debt were $1,053,790 and $1,053,283 , respectively. As of December 31, 201 5 , the carrying value and estimated fair value of the Company’s debt were $1,1 6 9, 377 and $1,170,901 , respectively. |
Share Based Payments
Share Based Payments | 6 Months Ended |
Jun. 30, 2016 | |
Share Based Payments [Abstract] | |
Share Based Payments | NOTE 8 – SHARE BASED PAYMENTS In May 2011, the Company established and our shareholders approved the Hersha Hospitality Trust 2012 Equity Incentive Plan (the “2012 Plan”) for the purpose of attracting and retaining executive officers, employees, trustees and other persons and entities that provide services to the Company. Executives & Employees Annual Long Term Equity Incentive Programs To further align the interests of the Company’s executives with those of shareholders, the Compensation Committee grants annual long term equity incentive awards that are both “performance based” and “time based.” On March 17 , 201 6 , the Compensation Committee approved the 201 6 Annual Long Term Equity Incentive Program (“201 6 Annual EIP”) for the executive officers, pursuant to which the executive officers are eligible to earn equity awards in the form of stock awards or performance share awards issuable pursuant to the 2012 Plan (“LTIP Units”). LTIP Units are earned under the 2016 Annual EIP based on achieving a threshold, target or maximum level of performance in the performance of RevPAR growth in certain defined areas. The Company accounts for these grants as performance awards for which the Company assesses the probability of achievement of the performance conditions at the end of each period. As of June 30, 2016 , no shares or LTIP Units have been issued in accordance with the 2012 Plan to the executive officers in settlement of 201 6 Annual EIP awards. The following table is a summary of all unvested LTIP Units issued to executives: Units Vested Unearned Compensation Issuance Date LTIP Units Issued Vesting Period Vesting Schedule June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 March 30, 2016 (2015 Annual EIP) 183,396 3 years 25%/year (1) 45,847 - $ 1,450 $ - March 30, 2015 (2014 Annual EIP) 128,832 3 years 25%/year (1) 64,415 64,415 492 758 December 23, 2014 (2013 Annual EIP) (3) 83,993 3 years 25%/year (1) 55,994 55,994 87 173 December 23, 2014 (3) 258,899 5 years 33% Year 3, 4, 5 (2) 172,599 86,299 1,005 1,553 655,120 338,855 206,708 $ 3,034 $ 2,484 (1) 25% of the issued shares or LTIP Units vested immediately upon issuance. In general, the remaining shares or LTIP Units vest 25% on the first through third anniversaries of the end of the performance period (subject to continuous employment through the applicable vesting date). (2) On April 18, 2012, the Company entered into amended and restated employment agreements with the Company’s executive officers. To induce the executives to agree to the substantial reduction in benefits upon certain terminations following a change of control as described in the agreements, the Company awarded an aggregate of 258,899 restricted common shares to the executives pursuant to the 2012 Plan, which were subsequently forfeited and replaced with LTIP Units. One-third of each award of LTIP Units vested or will vest on each of the third, fourth and fifth anniversaries of the date of issuance. Vesting will accelerate upon a change of control or if the relevant executive’s employment with the Company were to terminate for any reason other than for cause (as defined in the employment agreements). NOTE 8 – SHARE BASED PAYMENTS (CONTINUED) (3) On December 23, 2014, the 2012 Plan was amended and restated to add LTIP Units as a type of award available under the 2012 Plan. On this date, the Compensation Committee approved an aggregate of 487,081 LTIP Units to certain executive officers. These executive officers forfeited an aggregate of 487,081 Class A Common Shares, all of which were unvested as of the grant date of the LTIP Units and previously awarded to the executive officers under the 2012 Plan as restricted stock awards. These LTIP Units are subject to the same time-based vesting conditions that applied to the forfeited restricted stock awards. Stock based compensation expense related to the Annual Long Term Equity Incentive Program of $ 952 and $ 934 and $2,362 and $2,130 was incurred during the three and six months ended June, 2016 and 201 5 , respectively. Unea rned compensation related to the Annual Long Term Equity Incentive Program as of June 30, 2016 and December 31, 201 5 was $ 3,034 a nd $ 2,484 , respectively. Compensation related to the grants and amortization of LTIP Units is included in Noncontrolling Interests on the Company’s Consolidated Balance Sheets and Consolidated Statements of Equity. Multi-Year Long Term Equity Incentive Programs On March 17, 2016, the Compensation Committee approved the 2016 Multi-Year Long Term Equity Incentive Program (“2016 Multi-Year EIP”). This program has a three-year performance period which commenced on January 1, 2016 and ends December 31, 2018. As of June 30, 2016, no shares or LTIP Units have been issued to the executive officers in settlement of 2016 Multi-Year EIP awards. The followin g table is a summary of the approved Multi-Year Long Term Equity Incentive Programs : Units Vested Unearned Compensation Compensation Committee Approval Date LTIP Units Issued LTIP Issuance Date Performance Period June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 March 17, 2016 (2016 Multi-Year EIP) - N/A 1/1/2016 to 12/31/2018 - - $ 1,036 $ - March 18, 2015 (2015 Multi-Year EIP) - N/A 1/1/2015 to 12/31/2017 - - 496 596 April 11, 2014 (2014 Multi-Year EIP) - N/A 1/1/2014 to 12/31/2016 - - 425 567 April 15, 2013 (2013 Multi-Year EIP) 110,849 3/30/2016 1/1/2013 to 12/31/2015 55,424 - 297 385 110,849 55,424 - $ 2,254 $ 1,548 The shares or LTIP Units issuable under the Multi-Year Long Term Incentive Programs, including the 2016 Multi-Year EIP, are based on the Company’s achievement of a certain level of (1) absolute total shareholder return ( 37.50% of the award), (2) relative total shareholder return as compared to the Company’s peer group ( 37.50% of the award), and (3) relative growth in revenue per available room (RevPar) compared to the Company’s peer group ( 25% of the award). The Company accounts for the total shareholder return components of these grants as market based awards where the Company estimates unearned compensation at the grant date fair value which is then amortized into compensation cost over the vesting period of each individual plan. The Company accounts for the RevPAR component of the grants as performance-based awards for which the Company assesses the probable achievement of the performance conditions at the end of the reporting period. Stock based compensation expe nse of $ 343 and $ 217 and $1,184 and $384 was recorded for the three and six months ended June 30, 2016 and 201 5 , respectively, for the Multi-Year Long Term Equity Incentive Programs. Unearned compensation related to the multi-year program as of June 30, 2016 and December 31, 201 5 , respectively, was $ 2,254 and $ 1,548 . NOTE 8 – SHARE BASED PAYMENTS (CONTINUED) Restricted Share Awards In addition to share based compensation expense related to awards to executives under the Multi-Year and Annual Long Term Equity Incentive Programs, share based compensation expense related to restricted common shares issued to employees of the Company o f $ 135 and $ 107 and $256 and $195 was incurred during the three and six months ended June 30, 2016 and 201 5 , respectively. Unearned compensation related to the restricted share awards as of June 30, 2016 and December 31, 201 5 was $ 366 and $ 491 , respectively. The following table is a summary of all unvested s hare awards issued to employees u nder the 2012 Plan and prior equity incentive plans: Shares Vested Unearned Compensation Original Year of Issuance Date Original Shares Issued Range of Share Price on Date of Grant* Vesting Period Vesting Schedule June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 2016 6,261 $ 21.11 2 years 50% /year 497 - $ 97 $ - 2015 23,492 21.76 -28.09 2 -4 years 25 -50% /year 13,636 600 269 419 2014 11,455 26.00 -27.00 2 years 50% /year 11,455 6,619 - 54 2013 11,899 22.56 2 -4 years 25 -50% /year 11,899 11,199 - 7 2012 13,646 21.12 2 -4 years 25 -50% /year 13,646 12,445 - 11 Total 66,753 51,133 30,863 $ 366 $ 491 *Original share price on date of grants prior to June 22, 2015 was multiplied by four to account for the reverse share split which occurred on June 22, 2015. See “Note 1 – Basis of Presentation” for more information. Trustees Annual Retainer The Compensation Committee approved a program that allows the Company’s trustees to make a voluntary election to receive any portion of the annual cash retainer in the form of common equity valued at a 25% premium to the cash that would have been received. On March 30, 201 6, we issued 5,289 shares which do not fully vest until December 31, 201 6 . Compensation expense incurred for the three and six months ended June 30, 2016 and 2015, respectively, was $37 and $23 and $37 and $47 . The following table is a summary of all unvested share awards issued to trustees in lieu of an annual cash retainer: Unearned Compensation Original Issuance Date Shares Issued Share Price on Date of Grant Vesting Period Vesting Schedule June 30, 2016 December 31, 2015 March 30, 2016 5,289 $ 21.11 9 months 100% $ 74 $ - NOTE 8 – SHARE BASED PAYMENTS (CONTINUED) Multi-Year Long-Term Equity Incentives Compensation expense for the Multi-Year Long Term Incentive Programs for the Company’s trustees incurred for the three and six months ended June 30, 2016 and 201 5 w as $ 15 and $30 for both periods. Une arn ed compensation related to the Multi-Year Long Term Equity Incentive Programs was $ 90 and $ 67 as of June 30, 2016 and December 31, 201 5 , respectively. The following table is a summary of all unvested share awards issued to trustees u nder the 2012 Plan and prior equity incentive plans: Shares Vested Unearned Compensation Original Issuance Date Shares Issued Vesting Period Vesting Schedule June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 March 30, 2016 2,500 3 years 33% /year - - $ 44 $ - December 30, 2014 2,500 3 years 33% /year 835 835 36 48 December 27, 2013 3,000 3 years 33% /year 2,170 2,170 10 19 3,005 3,005 $ 90 $ 67 Share Awards Compensation expense related to share awards issued to the Board of Trustees of $319 and $271 was incurred during the three and six months ended June 30, 2016 and 2015, respectively, and is recorded in general and administrative expense on the statement of operations. Share grants issued to the Board of Trustees are immediately vested. On June 6, 2016, an aggregate of 17,795 shares were issued to the Board of Trustees at a price per share on the date of grant of $17.96 . Non-employees The Company issues share based awards as compensation to non-employees for services provided to the Company consisting primarily of restricted common sh ares. The Company recorded stock based compensation expense of $ 72 and $ 88 and $91 and $137 for the three and six months ended June 30, 2016 and 2015, respectively. Unearned compensation related to the restricted share awards as of June 30, 2016 and December 31, 201 5 was $ 79 and $ 90 , respectively. The following table is a summary of all unvested share awards issued to non-em ployees under the 2012 Plan: Shares Vested Unearned Compensation Original Issuance Date Shares Issued Share Price on Date of Grant* Vesting Period Vesting Schedule June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 March 30, 2016 7,500 $ 21.11 2 years 50% /year 3,750 - $ 79 $ - March 27, 2015 7,238 $ 25.88 2 years 50% /year 7,238 3,762 - 90 Total 14,738 10,988 3,762 $ 79 $ 90 *Original share price on date of grants prior to June 22, 2015 was multiplied by four to account for the reverse share split which occurred on June 22, 2015. See “Note 1 – Basis of Presentation” for more information. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 9 – EARNINGS PER SHARE The following table is a reconciliation of the income or loss (numerator) and the weighted average shares (denominator) used in the calculation of basic and diluted earnings per common share. The computation of basic and diluted earnings per share is presented below. Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 NUMERATOR: Basic and Diluted* Net Income $ 114,959 $ 19,626 $ 106,540 $ 15,237 (Income) loss allocated to Noncontrolling Interests (4,748) (405) (4,061) 38 Distributions to Preferred Shareholders (4,000) (3,589) (7,589) (7,178) Dividends Paid on Unvested Restricted Shares and LTIP Units (112) (112) (257) (253) Extinguishment of Issuance Costs Upon Redemption of Series B Preferred Stock (4,021) - (4,021) - Net Income attributable to Common Shareholders $ 102,078 $ 15,520 $ 90,612 $ 7,844 DENOMINATOR: Weighted average number of common shares - basic 43,427,726 48,530,716 43,903,526 49,053,846 Effect of dilutive securities: Restricted Stock Awards and LTIP Units (unvested) 264,176 299,603 183,458 268,053 Contingently Issued Shares 171,675 213,595 297,985 254,423 Weighted average number of common shares - diluted 43,863,577 49,043,914 44,384,969 49,576,322 * Income (loss) allocated to noncontrolling interest in HHLP has been excluded from the numerator and Common Units and Vested LTIP Units have been omitted from the denominator for the purpose of computing diluted earnings per share since including these amounts in the numerator and denominator would have no impact. In addition, potentially dilutive common shares, if any, have been excluded from the denominator if they are anti-dilutive to income (loss) applicable to common shareholders. |
Cash Flow Disclosures And Non C
Cash Flow Disclosures And Non Cash Investing And Financing Activities | 6 Months Ended |
Jun. 30, 2016 | |
Cash Flow Disclosures And Non Cash Investing And Financing Activities [Abstract] | |
Cash Flow Disclosures And Non Cash Investing And Financing Activities | NOTE 10 – CASH FLOW DISCLOSURES AND NON CASH INVESTING AND FINANCING ACTIVITIES Interest paid during the six months ended June 30, 2016 and 2015 totaled $22,878 and $ 19,757 , respectively. The following non-cash investing and financing activities occurred during 2016 and 2015: 2016 2015 Common Shares issued as part of the Dividend Reinvestment Plan $ 31 $ 32 Acquisition of hotel properties: Debt assumed, including premium 14,750 28,902 Deposit paid in prior period towards acquisition which closed in current period 5,000 - Cash paid for income taxes 669 - Accrued payables for fixed assets placed into service 467 - Contribution of fixed assets to joint venture 264,658 - |
Basis Of Presentation (Policies
Basis Of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Basis Of Presentation [Abstract] | |
Noncontrolling Interest | Noncontrolling Interest We classify the noncontrolling interests of our consolidated variable interest entity, common units of limited partnership interest in HHLP (“Common Units”), and LTIP Units as equity. LTIP Units are a special class of limited partnership interest in the Operating Partnership that are convertible into Common Units under certain circumstances. The noncontrolling interest of Common Units totaled $39,683 as of June 30, 2016 and $31,876 as of December 31, 2015. As of June 30, 2016, there were 2,613,546 Common Units outstanding with a fair market value of $44,822 , based on the price per share of our common shares on the NYSE on such date. In accordance with the partnership agreement of HHLP, holders of these units may redeem them for cash unless we, in our sole and absolute discretion, elect to issue common shares on a one-for-one basis in lieu of paying cash. Net income or loss attributed to Common Units, as well as the net income or loss related to the noncontrolling interests of our consolidated variable interest entity, is included in net income or loss but excluded from net income or loss applicable to common shareholders in the consolidated statements of operations. |
Variable Interest Entities | Variable Interest Entities On Januar y 1, 2016, we adopted ASU No. 2015-02, Consolidation – Amendments to the Consolidation Analysis. We evaluated the application of ASU No. 2015-02 and concluded that no change was required for the accounting of our interests in less than wholly owned joint ventures. However, HHLP, our operating partnership, now meets the criteria as a variable interest entity. The Company’s most significant asset is its investment in HHLP, and consequently, substantially all of the Company’s assets and liabilities represent those assets and liabilities of HHLP. |
Shareholders' Equity | Shareholders’ Equity On May 31, 2016, we completed a public offering of 7,700,000 (including 700,000 overallotment shares sold on June 14, 2016) 6.50% Series D Cumulative Redeemable Preferred Shares. These shares have a par value of $0.01 per share with a $25.00 liquidation preference per share. Net proceeds of the offering, after deducting the underwriting discount and the offering expenses payable to us, were approximately $186,010 . We utilized the net proceeds of the offering to redeem all outstanding 8.00% Series B Cumulative Redeemable Preferred Shares on June 8, 2016, and for general corporate purposes. On June 8, 2016, we redeemed all of our issued and outstanding 8.00% Series B Cumulative Redeemable Preferred Shares. The shares were redeemed at a per share redemption price of $25.00 together with accrued and unpaid dividends to the redemption date for an aggregate per share redemption price of $25.3722 . Dividends ceased accruing on the Series B Preferred Shares on June 8, 2016. Terms of the Series B, Series C, and Series D Preferred Shares outstanding at June 30, 2016 and December 31, 2015 are summarized as follows: Dividend Per Share Shares Outstanding Six Months Ended June 30, Series June 30, 2016 December 31, 2015 Aggregate Liquidation Preference Distribution Rate 2016 2015 Series B - 4,600,000 $ 115,000 8.000% $ 0.8722 $ 1.0000 Series C 3,000,000 3,000,000 $ 75,000 6.875% $ 0.8594 $ 0.8594 Series D 7,700,000 - $ 192,500 6.500% $ 0.2031 - Total 10,700,000 7,600,000 In May 2015, our Board of Trustees approved a reverse share split of our issued and outstanding common shares and Common Units and LTIP Units at a ratio of 1-for-4. This reverse share split converted every four issued and outstanding common shares into one common share. The reverse share split was effective as of 5:00 PM Eastern time on June 22, 2015. As a result of the reverse share split, the number of outstanding common shares was reduced from 191,079,951 to 47,769,961 shares and the number of outstanding Common Units and LTIP Units was reduced from 9,313,063 to 2,328,276 units. In October 2015, our Board of Trustees authorized a new share repurchase program for up to $100,000 of common shares which commenced upon the completion of the previous program. The new program will expire on December 31, 2016 unless extended by the Board of Trustees. We may seek Board of Trustee approval to increase the 2016 authorization. For the six months ended June 30, 2016, the Company repurchased 2,072,007 common shares for an aggregate purchase price of $39,127 . Upon repurchase by the Company, these common shares ceased to be outstanding and became authorized but unissued common shares. |
New Accounting Pronouncements | New Accounting Pronouncements In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Award Payment Accounting , which simplifies various aspects of how share-based payments are accounted for and presented in the financial statements. This standard requires companies to record all of the tax effects related to share-based payments through the income statement, allows companies to elect an accounting policy to either estimate the share based award forfeitures (and expense) or account for forfeitures (and expense) as they occur, and allows companies to withhold a percentage of the shares issuable upon settlement of an award up to the maximum individual statutory tax rate without causing the award to be classified as a liability. The new standard is effective for the Company on January 1, 2017. Early adoption is permitted. The Company is evaluating the effect that ASU No. 2016-09 will have on its consolidated financial statements and related disclosures. NOTE 1 – BASIS OF PRESENTATION (CONTINUED) We adopted ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs, on January 1, 2016. This standard requires debt issuance costs to be presented on the balance sheet as a direct deduction from the associated debt liability. Previously, debt issuance costs were recorded as an asset. The issuance costs will continue to be amortized over the life of the debt instrument and recorded in interest expense, as they were prior to the new standard. As part of this adoption, debt issuance costs are now included as an offset to the mortgages, unsecured term loan and unsecured notes payable line items on the consolidated balance sheets for all periods presented. For full reclassification amounts, see “Note 5 – Debt”. On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, 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. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for the Company on January 1, 2018. Early adoption is permitted, but not prior to the original effective date of January 1, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU No. 2014-09 will have on its consolidated financial statements and related disclosures. The Company continues to evaluate this standard and the impact it will have, if any, on our ongoing financial reporting. |
Reclassification | Reclassification Certain amounts in the prior year financial statements have been reclassified to conform to the current year presentation. |
Basis Of Presentation (Tables)
Basis Of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Basis Of Presentation [Abstract] | |
Schedule Of Preferred Stock | Dividend Per Share Shares Outstanding Six Months Ended June 30, Series June 30, 2016 December 31, 2015 Aggregate Liquidation Preference Distribution Rate 2016 2015 Series B - 4,600,000 $ 115,000 8.000% $ 0.8722 $ 1.0000 Series C 3,000,000 3,000,000 $ 75,000 6.875% $ 0.8594 $ 0.8594 Series D 7,700,000 - $ 192,500 6.500% $ 0.2031 - Total 10,700,000 7,600,000 |
Investment In Hotel Properties
Investment In Hotel Properties (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Investment In Hotel Properties | June 30, 2016 December 31, 2015 Land $ 463,969 $ 480,874 Buildings and Improvements 1,362,665 1,518,565 Furniture, Fixtures and Equipment 214,480 227,527 2,041,114 2,226,966 Less Accumulated Depreciation (358,122) (395,847) Total Investment in Hotel Properties $ 1,682,992 $ 1,831,119 |
Condensed Pro Forma Financial Data | Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Pro Forma Total Revenues $ 127,723 133,796 $ 238,031 $ 236,574 Pro Forma Net Income 114,968 21,364 108,780 16,698 Income Allocated to Noncontrolling Interest (4,748) (470) (4,164) (16) Preferred Distributions (4,000) (3,589) (7,589) (7,178) Extinguishment of Issuance Costs Upon Redemption of Series B Preferred Shares (4,021) - (4,021) - Pro Forma Income Applicable to Common Shareholders $ 102,199 $ 17,305 $ 93,006 $ 9,504 Pro Forma Income Applicable to Common Shareholders per Common Share Basic $ 2.35 $ 0.36 $ 2.12 $ 0.19 Diluted $ 2.33 $ 0.35 $ 2.10 $ 0.19 Weighted Average Common Shares Outstanding Basic 43,427,726 48,530,716 43,903,526 49,053,846 Diluted 43,863,577 49,043,914 44,384,969 49,576,322 |
Aquisitions In 2016 [Member] | |
Wholly Owned Hotel Properties Acquired | Hotel Acquisition Date Land Buildings and Improvements Furniture Fixtures and Equipment Other Intangibles Loan Costs Total Purchase Price Assumption of Debt Sanctuary Beach Resort, Marina, CA 1/28/2016 $ 20,014 $ 17,093 $ 2,369 $ - $ 198 $ 39,674 $ 14,750 * Hilton Garden Inn M Street, Washington, DC 3/9/2016 30,131 65,971 9,621 874 ** - 106,597 - TOTAL $ 50,145 $ 83,064 $ 11,990 $ 874 $ 198 $ 146,271 $ 14,750 *Assumption of debt includes a $50 premium resulting from the determination that the stated rate of interest is above market rates on the date of acquisition **Includes an intangible asset for a lease-in-place of $648 , advance bookings of $76 a nd franchise fees of $150 . |
Results Of Operations For Hotels Acquired With 100% Interest | Three Months Ended June 30, Six Months Ended June 30, 2016 2016 Hotel Revenue Net Income Revenue Net Income Sanctuary Beach Resort, Marina, CA $ 1,662 $ 175 $ 2,564 $ 438 Hilton Garden Inn M Street, Washington, DC 4,903 1,618 6,132 2,109 Total $ 6,565 $ 1,793 $ 8,696 $ 2,547 |
Investment In Unconsolidated 23
Investment In Unconsolidated Joint Ventures (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Investment In Unconsolidated Joint Ventures [Abstract] | |
Investment In Unconsolidated Joint Ventures | Percent Preferred June 30, December 31, Joint Venture Hotel Properties Owned Return 2016 2015 SB Partners, LLC Holiday Inn Express, South Boston, MA 50.0% N/A $ 982 $ 795 Hiren Boston, LLC Courtyard by Marriott, South Boston, MA 50.0% N/A 3,034 4,499 Mystic Partners, LLC Hilton and Marriott branded hotels in CT 8.8%-66.7% 8.5% non-cumulative 4,864 5,022 Cindat Hersha Owner JV, LLC Hilton and IHG branded hotels in NYC 30.0% * 8,364 - $ 17,244 $ 10,316 *See explanation below of the Cindat Hersha Owner JV, LLC (“Owner JV”) for more information on the preferred return provisions of this joint venture. |
Income Or Loss From Unconsolidated Joint Ventures | Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 SB Partners, LLC $ 326 $ 287 $ 287 $ 198 Hiren Boston, LLC 379 316 285 207 Mystic Partners, LLC (76) (77) (157) (153) Cindat Hersha Owner JV, LLC 892 - 892 - Income from Unconsolidated Joint Venture Investments $ 1,521 $ 526 $ 1,307 $ 252 |
Summary Financial Information Related To Unconsolidated Joint Ventures | Balance Sheets June 30, December 31, 2016 2015 Assets Investment in Hotel Properties, Net $ 652,905 $ 105,354 Other Assets 37,513 15,558 Total Assets $ 690,418 $ 120,912 Liabilities and Equity Mortgages and Notes Payable $ 444,392 $ 113,532 Other Liabilities 24,911 30,575 Equity: Hersha Hospitality Trust 126,224 22,698 Joint Venture Partner(s) 94,891 (45,893) Total Equity 221,115 (23,195) Total Liabilities and Equity $ 690,418 $ 120,912 Statements of Operations Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Room Revenue $ 31,578 $ 15,939 $ 43,958 $ 28,621 Other Revenue 6,789 6,131 11,492 11,199 Operating Expenses (20,681) (14,313) (33,565) (27,506) Lease Expense (276) (276) (581) (551) Property Taxes and Insurance (2,316) (720) (3,077) (1,475) General and Administrative (2,116) (1,333) (3,348) (2,738) Depreciation and Amortization (3,335) (1,572) (5,009) (3,138) Interest Expense (4,658) (1,635) (6,264) (3,257) Acquisition Costs (1,499) - (1,499) - Loss allocated to Noncontrolling Interests (72) (62) (40) (86) Net Income $ 3,414 $ 2,159 $ 2,067 $ 1,069 |
Reconciliation Of Share In Unconsolidated Joint Ventures' Equity In Investment In Unconsolidated Joint Ventures | June 30, December 31, 2016 2015 Company's share of equity recorded on the joint ventures' financial statements $ 126,224 $ 22,698 Adjustment to reconcile the Company's share of equity recorded on the joint ventures' financial statements to our investment in unconsolidated joint ventures (1) (108,980) (12,382) Investment in Unconsolidated Joint Ventures $ 17,244 $ 10,316 (1) Adjustment to reconcile the Company's share of equity recorded on the joint ventures' financial statements to our investment in unconsolidated joint ventures consists of the following: · cu mul ative impairment of the Company’s investment in joint ventures not reflected on the joint ventures' financial statements; · the difference between the Company’s basis in the investment in joint ventures and the equity recorded on the joint ventures' financial statements; and accumulated amortization of the Company’s equity in joint ventures that reflects the difference in the Company’s portion of the fair value of joint ventures' assets on the date of our investment when compared to the carrying value of the assets recorded on the joint ventures ’ financial statements (this excess or deficit investment is amortized over the life of the properties, and the amortization is included in Income (Loss) from Unconsolidated Joint Venture Investments on the Company’s consolidated statement of operations). |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Other Assets [Abstract] | |
Other Assets | June 30, 2016 December 31, 2015 Investment in Statutory Trusts 1,548 1,548 Prepaid Expenses 9,096 14,434 Deferred Tax Asset, Net of Valuation Allowance of $804 17,660 14,590 Other 9,078 9,386 $ 37,382 $ 39,958 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt [Abstract] | |
Schedule Of Mortgages Payable | June 30, 2016 December 31, 2015 Mortgage Indebtedness $ 495,026 $ 545,036 Net Unamortized Premium 2,863 3,503 Net Unamortized Deferred Financing Costs (3,283) (3,880) $ 494,606 $ 544,659 |
Summary Of The Balances Outstanding And Interest Rate Spread | Outstanding Balance Borrowing Spread June 30, 2016 December 31, 2015 Line of Credit 1.70% to 2.45% $ - $ 27,000 First Term Loan 1.60% to 2.35% 210,520 250,000 Second Term Loan 1.50% to 2.25% 300,000 300,000 |
Fair Value Measurements And D26
Fair Value Measurements And Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Measurements And Derivative Instruments [Abstract] | |
Fair Value Of Interest Rate Swaps And Caps | Estimated Fair Value Hedged Debt Type Strike Rate Index Effective Date Maturity Date Notional Amount June 30, 2016 December 31, 2015 Courtyard, LA Westside, Culver City, CA Cap 3.000% 1-Month LIBOR + 3.00% October 27, 2015 September 29, 2017 35,000 13 19 Hyatt, Union Square, New York, NY Cap 3.000% 1-Month LIBOR + 2.30% June 10, 2015 June 10, 2019 55,750 15 136 Hyatt, Union Square, New York, NY* Cap 2.000% 1-Month LIBOR + 4.19% April 9, 2013 April 9, 2016 55,000 - - Unsecured Term Loan Swap 0.545% 1-Month LIBOR + 2.35% November 5, 2012 November 5, 2016 100,000 (29) 84 Unsecured Term Loan Swap 0.600% 1-Month LIBOR + 2.35% December 18, 2012 November 5, 2016 50,000 (24) 18 Duane Street Hotel, New York, NY Swap 0.933% 1-Month LIBOR + 4.50% February 1, 2014 February 1, 2017 9,071 (24) (21) Hilton Garden Inn 52nd Street, New York, NY Swap 1.152% 1-Month LIBOR + 2.90% June 1, 2015 February 21, 2017 44,775 (195) (215) $ (244) $ 21 * On June 10, 2015, we refinanced the debt associated with Hyatt Union Square. As a result, we entered into an interest rate cap with a strike rate of 3.000% . The original interest rate cap matured on April 9, 2016 and was replaced by the aforementioned interest rate cap with a strike rate of 3.000%. |
Share Based Payments (Tables)
Share Based Payments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Summary Of Unvested Share Awards Issued To Nonemployees | Shares Vested Unearned Compensation Original Issuance Date Shares Issued Share Price on Date of Grant* Vesting Period Vesting Schedule June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 March 30, 2016 7,500 $ 21.11 2 years 50% /year 3,750 - $ 79 $ - March 27, 2015 7,238 $ 25.88 2 years 50% /year 7,238 3,762 - 90 Total 14,738 10,988 3,762 $ 79 $ 90 *Original share price on date of grants prior to June 22, 2015 was multiplied by four to account for the reverse share split which occurred on June 22, 2015. See “Note 1 – Basis of Presentation” for more information. |
Multi-year LTIP Trustee [Member] | |
Summary Of Unvested Share Awards Issued To Trustees | Shares Vested Unearned Compensation Original Issuance Date Shares Issued Vesting Period Vesting Schedule June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 March 30, 2016 2,500 3 years 33% /year - - $ 44 $ - December 30, 2014 2,500 3 years 33% /year 835 835 36 48 December 27, 2013 3,000 3 years 33% /year 2,170 2,170 10 19 3,005 3,005 $ 90 $ 67 |
Multi-Year LTIP [Member] | |
Summary Of Unvested Share Awards Issued To Executives | Units Vested Unearned Compensation Compensation Committee Approval Date LTIP Units Issued LTIP Issuance Date Performance Period June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 March 17, 2016 (2016 Multi-Year EIP) - N/A 1/1/2016 to 12/31/2018 - - $ 1,036 $ - March 18, 2015 (2015 Multi-Year EIP) - N/A 1/1/2015 to 12/31/2017 - - 496 596 April 11, 2014 (2014 Multi-Year EIP) - N/A 1/1/2014 to 12/31/2016 - - 425 567 April 15, 2013 (2013 Multi-Year EIP) 110,849 3/30/2016 1/1/2013 to 12/31/2015 55,424 - 297 385 110,849 55,424 - $ 2,254 $ 1,548 |
LTIP Units [Member] | |
Summary Of Unvested Share Awards Issued To Executives | Units Vested Unearned Compensation Issuance Date LTIP Units Issued Vesting Period Vesting Schedule June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 March 30, 2016 (2015 Annual EIP) 183,396 3 years 25%/year (1) 45,847 - $ 1,450 $ - March 30, 2015 (2014 Annual EIP) 128,832 3 years 25%/year (1) 64,415 64,415 492 758 December 23, 2014 (2013 Annual EIP) (3) 83,993 3 years 25%/year (1) 55,994 55,994 87 173 December 23, 2014 (3) 258,899 5 years 33% Year 3, 4, 5 (2) 172,599 86,299 1,005 1,553 655,120 338,855 206,708 $ 3,034 $ 2,484 (1) 25% of the issued shares or LTIP Units vested immediately upon issuance. In general, the remaining shares or LTIP Units vest 25% on the first through third anniversaries of the end of the performance period (subject to continuous employment through the applicable vesting date). (2) On April 18, 2012, the Company entered into amended and restated employment agreements with the Company’s executive officers. To induce the executives to agree to the substantial reduction in benefits upon certain terminations following a change of control as described in the agreements, the Company awarded an aggregate of 258,899 restricted common shares to the executives pursuant to the 2012 Plan, which were subsequently forfeited and replaced with LTIP Units. One-third of each award of LTIP Units vested or will vest on each of the third, fourth and fifth anniversaries of the date of issuance. Vesting will accelerate upon a change of control or if the relevant executive’s employment with the Company were to terminate for any reason other than for cause (as defined in the employment agreements). NOTE 8 – SHARE BASED PAYMENTS (CONTINUED) (3) On December 23, 2014, the 2012 Plan was amended and restated to add LTIP Units as a type of award available under the 2012 Plan. On this date, the Compensation Committee approved an aggregate of 487,081 LTIP Units to certain executive officers. These executive officers forfeited an aggregate of 487,081 Class A Common Shares, all of which were unvested as of the grant date of the LTIP Units and previously awarded to the executive officers under the 2012 Plan as restricted stock awards. These LTIP Units are subject to the same time-based vesting conditions that applied to the forfeited restricted stock awards. |
Restricted Share Awards [Member] | |
Summary Of Unvested Share Awards Issued To Executives | Shares Vested Unearned Compensation Original Year of Issuance Date Original Shares Issued Range of Share Price on Date of Grant* Vesting Period Vesting Schedule June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 2016 6,261 $ 21.11 2 years 50% /year 497 - $ 97 $ - 2015 23,492 21.76 -28.09 2 -4 years 25 -50% /year 13,636 600 269 419 2014 11,455 26.00 -27.00 2 years 50% /year 11,455 6,619 - 54 2013 11,899 22.56 2 -4 years 25 -50% /year 11,899 11,199 - 7 2012 13,646 21.12 2 -4 years 25 -50% /year 13,646 12,445 - 11 Total 66,753 51,133 30,863 $ 366 $ 491 *Original share price on date of grants prior to June 22, 2015 was multiplied by four to account for the reverse share split which occurred on June 22, 2015. See “Note 1 – Basis of Presentation” for more information. |
Annual Retainer [Member] | |
Summary Of Unvested Share Awards Issued To Trustees | Unearned Compensation Original Issuance Date Shares Issued Share Price on Date of Grant Vesting Period Vesting Schedule June 30, 2016 December 31, 2015 March 30, 2016 5,289 $ 21.11 9 months 100% $ 74 $ - |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation Of Earnings Per Share | Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 NUMERATOR: Basic and Diluted* Net Income $ 114,959 $ 19,626 $ 106,540 $ 15,237 (Income) loss allocated to Noncontrolling Interests (4,748) (405) (4,061) 38 Distributions to Preferred Shareholders (4,000) (3,589) (7,589) (7,178) Dividends Paid on Unvested Restricted Shares and LTIP Units (112) (112) (257) (253) Extinguishment of Issuance Costs Upon Redemption of Series B Preferred Stock (4,021) - (4,021) - Net Income attributable to Common Shareholders $ 102,078 $ 15,520 $ 90,612 $ 7,844 DENOMINATOR: Weighted average number of common shares - basic 43,427,726 48,530,716 43,903,526 49,053,846 Effect of dilutive securities: Restricted Stock Awards and LTIP Units (unvested) 264,176 299,603 183,458 268,053 Contingently Issued Shares 171,675 213,595 297,985 254,423 Weighted average number of common shares - diluted 43,863,577 49,043,914 44,384,969 49,576,322 * Income (loss) allocated to noncontrolling interest in HHLP has been excluded from the numerator and Common Units and Vested LTIP Units have been omitted from the denominator for the purpose of computing diluted earnings per share since including these amounts in the numerator and denominator would have no impact. In addition, potentially dilutive common shares, if any, have been excluded from the denominator if they are anti-dilutive to income (loss) applicable to common shareholders. |
Cash Flow Disclosures And Non29
Cash Flow Disclosures And Non Cash Investing And Financing Activities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Cash Flow Disclosures And Non Cash Investing And Financing Activities [Abstract] | |
Non-cash Investing And Financing Activities | 2016 2015 Common Shares issued as part of the Dividend Reinvestment Plan $ 31 $ 32 Acquisition of hotel properties: Debt assumed, including premium 14,750 28,902 Deposit paid in prior period towards acquisition which closed in current period 5,000 - Cash paid for income taxes 669 - Accrued payables for fixed assets placed into service 467 - Contribution of fixed assets to joint venture 264,658 - |
Basis Of Presentation (Narrativ
Basis Of Presentation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |||||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Oct. 31, 2015 | Jun. 22, 2015 | Jun. 21, 2015 | |
Noncontrolling Interest [Abstract] | ||||||
Noncontrolling interests in Nonredeemable Common Units | $ 39,683 | $ 31,876 | ||||
Shareholders' Equity [Abstract] | ||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 0.25 | |||||
Common Shares - Outstanding (in shares) | 47,769,961 | 191,079,951 | ||||
Common Shares, Dividends declared (in dollars per share) | $ 0.56 | $ 0.56 | ||||
Stock Repurchase Program, Authorized Amount | $ 100,000 | |||||
Treasury Stock, Shares, Acquired | 2,072,007 | |||||
Repurchase of Common Shares | $ 39,127 | $ 50,367 | ||||
Proceeds from Issuance of Preferred Shares, Net | $ 186,010 | |||||
Hersha Hospitality Limited Partnership [Member] | ||||||
Class of Stock [Line Items] | ||||||
Approximate ownership percentage in the Partnership (in hundredths) | 94.20% | |||||
General partnership interest (in hundredths) | 1.00% | |||||
Noncontrolling Interests Common Units And LTIP Units [Member] | ||||||
Noncontrolling Interest [Abstract] | ||||||
Noncontrolling interests in Nonredeemable Common Units | $ 39,683 | $ 31,876 | ||||
Nonredeemable common units outstanding (in shares) | 2,613,546 | |||||
Fair market value of nonredeemable common units | $ 44,822 | |||||
Shareholders' Equity [Abstract] | ||||||
Common Shares - Outstanding (in shares) | 2,328,276 | 9,313,063 | ||||
Series B, C and D Preferred Shares [Member] | ||||||
Shareholders' Equity [Abstract] | ||||||
Preferred Shares - Par Value (in dollars per share) | $ 0.01 | $ 0.01 | ||||
Preferred Shares - Liquidation Preference Value (in dollars per share) | $ 25 | $ 25 | ||||
Series B Preferred Stock [Member] | ||||||
Shareholders' Equity [Abstract] | ||||||
Distribution Rate | 8.00% | |||||
Preferred Stock, Redemption Price Per Share | $ 25 | |||||
Preferred Stock, Redemption Price Per Share, Including Accrued And Unpaid Dividends | $ 25.3722 | |||||
Series C Preferred Shares [Member] | ||||||
Shareholders' Equity [Abstract] | ||||||
Distribution Rate | 6.875% | |||||
Series D Preferred Stock [Member] | ||||||
Shareholders' Equity [Abstract] | ||||||
Cumulative Redeemable Preferred shares sold (in shares) | 7,700,000 | |||||
Overallotment shares sold | 700,000 | |||||
Distribution Rate | 6.50% | |||||
Proceeds from Issuance of Preferred Shares, Net | $ 186,010 |
Basis Of Presentation (Schedule
Basis Of Presentation (Schedule Of Preferred Stock) (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Class of Stock [Line Items] | |||
Shares Outstanding | 10,700,000 | 7,600,000 | |
Series B Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Shares Outstanding | 4,600,000 | ||
Aggregate Liquidation Preference | $ 115,000 | ||
Distribution Rate | 8.00% | ||
Dividend Per Share | $ 0.8722 | $ 1 | |
Series C Preferred Shares [Member] | |||
Class of Stock [Line Items] | |||
Shares Outstanding | 3,000,000 | 3,000,000 | |
Aggregate Liquidation Preference | $ 75,000 | ||
Distribution Rate | 6.875% | ||
Dividend Per Share | $ 0.8594 | $ 0.8594 | |
Series D Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Shares Outstanding | 7,700,000 | ||
Aggregate Liquidation Preference | $ 192,500 | ||
Distribution Rate | 6.50% | ||
Dividend Per Share | $ 0.2031 |
Investment In Hotel Propertie32
Investment In Hotel Properties (Narrative) (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Apr. 29, 2016USD ($)property | Jun. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Business Acquisition [Line Items] | |||||
Acquisition costs | $ 1,424,000 | ||||
Revenue | $ 6,565,000 | 8,696,000 | |||
Net Income (Loss) | 1,793,000 | 2,547,000 | |||
Assumption of Debt | 14,750,000 | 14,750,000 | |||
Proceeds from Contribution of Hotel Property Assets to Unconsolidated Joint Venture | 428,811,000 | ||||
Total Purchase Price | 146,271,000 | ||||
Investment in hotel properties | 1,682,992,000 | 1,682,992,000 | $ 1,831,119,000 | ||
Total sales price | $ 0 | ||||
Reduction of consolidated mortgage debt | 64,710,000 | 121,113,000 | |||
Reduction to line of credit and unsecured term loan balance | 27,000,000 | $ (128,500,000) | |||
Repayment of Unsecured Term Loan Borrowing | 39,480,000 | ||||
Sanctuary Beach Resort, Marina, CA and Hilton Garden Inn M Street, Washington, DC [Member] | |||||
Business Acquisition [Line Items] | |||||
Revenue | 6,565,000 | 8,696,000 | |||
Net Income (Loss) | 1,793,000 | 2,547,000 | |||
Residence Inn Framingham, MA And Residence Inn Norwood, MA [Member] | |||||
Business Acquisition [Line Items] | |||||
Total sales price | 47,000,000 | 47,000,000 | |||
Envoy Hotel in Boston, MA [Member] | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, cash paid | 112,500,000 | ||||
Hyatt Place, King of Prussia, PA [Member] | |||||
Business Acquisition [Line Items] | |||||
Total sales price | 13,000,000 | 13,000,000 | |||
Approximate gain on sale | 5,402,000 | ||||
Cindat Hersha Owner JV, LLC [Member] | Cindat Capital Management Limited [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash contribution by Cindat | $ 354,550,000 | ||||
Preferred Joint Venture Partner, Ownership Percentage | 70.00% | ||||
Working capital and closing costs | $ 14,105,000 | ||||
Cindat Hersha Owner JV, LLC [Member] | Hersha Hospitality Limited Partnership [Member] | |||||
Business Acquisition [Line Items] | |||||
Percent owned (in hundredths) | 30.00% | ||||
Proceeds from Contribution of Hotel Property Assets to Unconsolidated Joint Venture | $ 354,550,000 | ||||
Preferred equity interest | 104,248,000 | $ 43,194,000 | $ 43,194,000 | ||
Working capital and closing costs | 12,239,000 | ||||
Contribution Of Closing Costs | 10,653,000 | ||||
Non-cumulative Return | 9.00% | ||||
Reduction of consolidated mortgage debt | 55,103,000 | ||||
Reduction to line of credit and unsecured term loan balance | 194,550,000 | ||||
Repayment of Unsecured Term Loan Borrowing | $ 39,480,000 | ||||
Cindat Hersha Owner JV, LLC [Member] | Limited Service Hotels In Manhattan (The "JV Properties") [Member] | |||||
Business Acquisition [Line Items] | |||||
Number of Real Estate Properties | property | 7 | ||||
Sale Agreement, Total Purchase Price | $ 543,500,000 | ||||
Cindat Hersha Owner JV, LLC [Member] | Limited Service Hotels In Manhattan (The "JV Properties") [Member] | Hersha Hospitality Limited Partnership [Member] | |||||
Business Acquisition [Line Items] | |||||
Preferred equity interest | 37,000,000 | ||||
Investment in hotel properties | 264,658,000 | ||||
Approximate gain on sale | 89,892,000 | ||||
Additional deferred gain | $ 81,333,000 |
Investment In Hotel Propertie33
Investment In Hotel Properties (Investment In Hotel Properties) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||
Total investment in hotel properties, gross | $ 2,041,114 | $ 2,226,966 |
Less accumulated depreciation | (358,122) | (395,847) |
Total investment in hotel properties, net | 1,682,992 | 1,831,119 |
Land [Member] | ||
Business Acquisition [Line Items] | ||
Total investment in hotel properties, gross | 463,969 | 480,874 |
Building and Improvements [Member] | ||
Business Acquisition [Line Items] | ||
Total investment in hotel properties, gross | 1,362,665 | 1,518,565 |
Furniture, Fixtures And Equipment [Member] | ||
Business Acquisition [Line Items] | ||
Total investment in hotel properties, gross | $ 214,480 | $ 227,527 |
Investment In Hotel Propertie34
Investment In Hotel Properties (Wholly Owned Hotel Properties Acquired) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Business Acquisition [Line Items] | |
Total Purchase Price | $ 146,271 |
Assumption of Debt | 14,750 |
Other Intangibles [Member] | |
Business Acquisition [Line Items] | |
Total Purchase Price | 874 |
Loan Costs [Member] | |
Business Acquisition [Line Items] | |
Total Purchase Price | 198 |
Land [Member] | |
Business Acquisition [Line Items] | |
Total Purchase Price | 50,145 |
Building and Improvements [Member] | |
Business Acquisition [Line Items] | |
Total Purchase Price | 83,064 |
Furniture, Fixtures And Equipment [Member] | |
Business Acquisition [Line Items] | |
Total Purchase Price | $ 11,990 |
Sanctuary Beach Resort, Marina, CA [Member] | |
Business Acquisition [Line Items] | |
Acquisition Date | Jan. 28, 2016 |
Total Purchase Price | $ 39,674 |
Assumption of Debt | 14,750 |
Premium on debt assumed | 50 |
Sanctuary Beach Resort, Marina, CA [Member] | Loan Costs [Member] | |
Business Acquisition [Line Items] | |
Total Purchase Price | 198 |
Sanctuary Beach Resort, Marina, CA [Member] | Land [Member] | |
Business Acquisition [Line Items] | |
Total Purchase Price | 20,014 |
Sanctuary Beach Resort, Marina, CA [Member] | Building and Improvements [Member] | |
Business Acquisition [Line Items] | |
Total Purchase Price | 17,093 |
Sanctuary Beach Resort, Marina, CA [Member] | Furniture, Fixtures And Equipment [Member] | |
Business Acquisition [Line Items] | |
Total Purchase Price | $ 2,369 |
Hilton Garden Inn M Street, Washington, DC [Member] | |
Business Acquisition [Line Items] | |
Acquisition Date | Mar. 9, 2016 |
Total Purchase Price | $ 106,597 |
Hilton Garden Inn M Street, Washington, DC [Member] | Other Intangibles [Member] | |
Business Acquisition [Line Items] | |
Total Purchase Price | 874 |
Lease-in-place intangible asset | 648 |
Intangible asset, advanced bookings | 76 |
Intangible asset, franchise fees | 150 |
Hilton Garden Inn M Street, Washington, DC [Member] | Land [Member] | |
Business Acquisition [Line Items] | |
Total Purchase Price | 30,131 |
Hilton Garden Inn M Street, Washington, DC [Member] | Building and Improvements [Member] | |
Business Acquisition [Line Items] | |
Total Purchase Price | 65,971 |
Hilton Garden Inn M Street, Washington, DC [Member] | Furniture, Fixtures And Equipment [Member] | |
Business Acquisition [Line Items] | |
Total Purchase Price | $ 9,621 |
Investment In Hotel Propertie35
Investment In Hotel Properties (Results of Operations for Hotels Acquired With 100% Interest) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016 | Jun. 30, 2016 | |
Business Acquisition [Line Items] | ||
Revenue | $ 6,565 | $ 8,696 |
Net Income | 1,793 | 2,547 |
Sanctuary Beach Resort, Marina, CA [Member] | ||
Business Acquisition [Line Items] | ||
Revenue | 1,662 | 2,564 |
Net Income | 175 | 438 |
Hilton Garden Inn M Street, Washington, DC [Member] | ||
Business Acquisition [Line Items] | ||
Revenue | 4,903 | 6,132 |
Net Income | $ 1,618 | $ 2,109 |
Investment In Hotel Propertie36
Investment In Hotel Properties (Assets Held For Sale ) (Details) $ in Thousands | Jun. 30, 2016USD ($) |
Investment In Hotel Properties [Abstract] | |
Liabilities Related To Assets Held for Sale | $ 81,333 |
Investment In Hotel Propertie37
Investment In Hotel Properties (Condensed Pro Forma Financial Data) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Investment In Hotel Properties [Abstract] | |||||
Pro Forma Total Revenues | $ 127,723 | $ 133,796 | $ 238,031 | $ 236,574 | |
Pro Forma Net Loss | 114,968 | 21,364 | 108,780 | 16,698 | |
Loss Allocated to Noncontrolling Interest | (4,748) | (470) | (4,164) | (16) | |
Preferred Distributions | (4,000) | (3,589) | (7,589) | (7,178) | |
Extinguishment of Issuance Costs Upon Redemption of Series B Preferred Shares | (4,021) | (4,021) | |||
Pro Forma Loss Applicable to Common Shareholders | $ 102,199 | $ 17,305 | $ 93,006 | $ 9,504 | |
Pro Forma Loss Applicable to Common Shareholders per Common Share: Basic | $ 2.35 | $ 0.36 | $ 2.12 | $ 0.19 | |
Pro Forma Loss Applicable to Common Shareholders per Common Share: Diluted | $ 2.33 | $ 0.35 | $ 2.10 | $ 0.19 | |
Weighted Average Common Shares Outstanding: Basic | 43,427,726 | 48,530,716 | 43,903,526 | 49,053,846 | |
Weighted Average Common Shares Outstanding: Diluted | [1] | 43,863,577 | 49,043,914 | 44,384,969 | 49,576,322 |
[1] | Income (loss) allocated to noncontrolling interest in HHLP has been excluded from the numerator and Common Units and Vested LTIP Units have been omitted from the denominator for the purpose of computing diluted earnings per share since including these amounts in the numerator and denominator would have no impact. In addition, potentially dilutive common shares, if any, have been excluded from the denominator if they are anti-dilutive to income (loss) applicable to common shareholders. |
Investment In Unconsolidated 38
Investment In Unconsolidated Joint Ventures (Narrative) (Details) | 1 Months Ended | 6 Months Ended | |
Apr. 29, 2016USD ($)propertyagreement | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | |
Investments in Unconsolidated Joint Ventures [Line Items] | |||
Investment in hotel properties | $ 1,682,992,000 | $ 1,831,119,000 | |
Investment in Unconsolidated Joint Ventures | 17,244,000 | $ 10,316,000 | |
Proceeds from Contribution of Hotel Property Assets to Unconsolidated Joint Venture | $ 428,811,000 | ||
Asset management fee, percentage | 3.00% | ||
Cindat Hersha Owner JV, LLC [Member] | |||
Investments in Unconsolidated Joint Ventures [Line Items] | |||
Number of limited liability company agreements | agreement | 2 | ||
Proceeds from Issuance of Debt | $ 323,793,000 | ||
Cindat Capital Management Limited [Member] | Cindat Hersha Owner JV, LLC [Member] | |||
Investments in Unconsolidated Joint Ventures [Line Items] | |||
Cash contribution by Cindat | $ 354,550,000 | ||
Preferred Joint Venture Partner, Ownership Percentage | 70.00% | ||
Proceeds from Issuance of Debt | $ 226,655,000 | ||
Working capital and closing costs | 14,105,000 | ||
Common equity interest | $ 142,000,000 | ||
Common equity interest return | 10.00% | ||
Asset management fee, percentage | 1.00% | ||
Cindat Capital Management Limited [Member] | Cindat Hersha Owner JV, LLC [Member] | Scenario, Plan [Member] | |||
Investments in Unconsolidated Joint Ventures [Line Items] | |||
Common equity interest return | 8.00% | ||
Common Equity Interest, Return, Annual Reduction | 0.50% | ||
Common Equity Interest, Return, Annual Reduction, Term | 4 years | ||
Hersha Hospitality Limited Partnership [Member] | Cindat Hersha Owner JV, LLC [Member] | |||
Investments in Unconsolidated Joint Ventures [Line Items] | |||
Proceeds from Contribution of Hotel Property Assets to Unconsolidated Joint Venture | 354,550,000 | ||
Difference Between Fair Value And Basis, Amortized Over Life Of Underlying | $ 96,941,000 | ||
Proceeds from Issuance of Debt | 97,138,000 | ||
Preferred equity interest | 104,248,000 | $ 43,194,000 | |
Working capital and closing costs | 12,239,000 | ||
Contribution of closing costs | 10,653,000 | ||
Contribution of closing costs, amortized | $ 361,000 | ||
Non-cumulative Return | 9.00% | ||
Percent owned (in hundredths) | 30.00% | ||
Hersha Hospitality Limited Partnership [Member] | Cindat Hersha Owner JV, LLC [Member] | Junior Common Equity Interest [Member] | |||
Investments in Unconsolidated Joint Ventures [Line Items] | |||
Working capital and closing costs | $ 6,045,000 | ||
Common equity interest | $ 60,857,000 | ||
Common equity interest return | 8.00% | ||
Hersha Hospitality Limited Partnership [Member] | Cindat Hersha Owner JV, LLC [Member] | Preferred Equity Interest [Member] | |||
Investments in Unconsolidated Joint Ventures [Line Items] | |||
Working capital and closing costs | $ 6,194,000 | ||
Limited Service Hotels In Manhattan (The "JV Properties") [Member] | Cindat Hersha Owner JV, LLC [Member] | |||
Investments in Unconsolidated Joint Ventures [Line Items] | |||
Number of Real Estate Properties | property | 7 | ||
Sale Agreement, Total Purchase Price | $ 543,500,000 | ||
Limited Service Hotels In Manhattan (The "JV Properties") [Member] | Hersha Hospitality Limited Partnership [Member] | Cindat Hersha Owner JV, LLC [Member] | |||
Investments in Unconsolidated Joint Ventures [Line Items] | |||
Investment in hotel properties | 264,658,000 | ||
Preferred equity interest | 37,000,000 | ||
Mortgages [Member] | |||
Investments in Unconsolidated Joint Ventures [Line Items] | |||
Debt Instrument, Face Amount | 285,000,000 | ||
Mezzanine Mortgages [Member] | |||
Investments in Unconsolidated Joint Ventures [Line Items] | |||
Debt Instrument, Face Amount | $ 50,000,000 |
Investment In Unconsolidated 39
Investment In Unconsolidated Joint Ventures (Investment In Unconsolidated Joint Ventures) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Investments in Unconsolidated Joint Ventures [Line Items] | ||
Investment in unconsolidated joint ventures | $ 17,244 | $ 10,316 |
SB Partners, LLC [Member] | Holiday Inn Express, Boston, MA [Member] | ||
Investments in Unconsolidated Joint Ventures [Line Items] | ||
Percent Owned | 50.00% | |
Investment in unconsolidated joint ventures | $ 982 | 795 |
Hiren Boston, LLC [Member] | Courtyard by Marriott, Boston, MA [Member] | ||
Investments in Unconsolidated Joint Ventures [Line Items] | ||
Percent Owned | 50.00% | |
Investment in unconsolidated joint ventures | $ 3,034 | 4,499 |
Mystic Partners, LLC [Member] | Hilton And Marriott Branded Hotels In CT [Member] | ||
Investments in Unconsolidated Joint Ventures [Line Items] | ||
Preferred Return | 8.50% | |
Investment in unconsolidated joint ventures | $ 4,864 | $ 5,022 |
Mystic Partners, LLC [Member] | Hilton And Marriott Branded Hotels In CT [Member] | Minimum [Member] | ||
Investments in Unconsolidated Joint Ventures [Line Items] | ||
Percent Owned | 8.80% | |
Mystic Partners, LLC [Member] | Hilton And Marriott Branded Hotels In CT [Member] | Maximum [Member] | ||
Investments in Unconsolidated Joint Ventures [Line Items] | ||
Percent Owned | 66.70% | |
Cindat Hersha Owner JV, LLC [Member] | Hilton And IHG Branded Hotels In NYC [Member] | ||
Investments in Unconsolidated Joint Ventures [Line Items] | ||
Percent Owned | 30.00% | |
Preferred Return | 9.00% | |
Investment in unconsolidated joint ventures | $ 8,364 |
Investment In Unconsolidated 40
Investment In Unconsolidated Joint Ventures (Income Or Loss From Unconsolidated Joint Ventures) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Investments in Unconsolidated Joint Ventures [Line Items] | ||||
Income from Unconsolidated Joint Venture Investments | $ 1,521 | $ 526 | $ 1,307 | $ 252 |
SB Partners, LLC [Member] | ||||
Investments in Unconsolidated Joint Ventures [Line Items] | ||||
Income (Loss) from Unconsolidated Joint Ventures | 326 | 287 | 287 | 198 |
Hiren Boston, LLC [Member] | ||||
Investments in Unconsolidated Joint Ventures [Line Items] | ||||
Income (Loss) from Unconsolidated Joint Ventures | 379 | 316 | 285 | 207 |
Mystic Partners, LLC [Member] | ||||
Investments in Unconsolidated Joint Ventures [Line Items] | ||||
Income (Loss) from Unconsolidated Joint Ventures | (76) | $ (77) | (157) | $ (153) |
Cindat Hersha Owner JV, LLC [Member] | ||||
Investments in Unconsolidated Joint Ventures [Line Items] | ||||
Income (Loss) from Unconsolidated Joint Ventures | $ 892 | $ 892 |
Investment In Unconsolidated 41
Investment In Unconsolidated Joint Ventures (Summary Financial Information Related To Unconsolidated Joint Ventures) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Assets [Abstract] | |||||
Investment in hotel properties, net | $ 652,905 | $ 652,905 | $ 105,354 | ||
Other Assets | 37,513 | 37,513 | 15,558 | ||
Total Assets | 690,418 | 690,418 | 120,912 | ||
Liabilities and Equity [Abstract] | |||||
Mortgages and notes payable | 444,392 | 444,392 | 113,532 | ||
Other liabilities | 24,911 | 24,911 | 30,575 | ||
Equity [Abstract] | |||||
Hersha Hospitality Trust | 126,224 | 126,224 | 22,698 | ||
Joint Venture Partner(s) | 94,891 | 94,891 | (45,893) | ||
Total Equity | 221,115 | 221,115 | (23,195) | ||
Total Liabilities and Equity | 690,418 | 690,418 | $ 120,912 | ||
Statements of Operations [Abstract] | |||||
Room Revenue | 31,578 | $ 15,939 | 43,958 | $ 28,621 | |
Other Revenue | 6,789 | 6,131 | 11,492 | 11,199 | |
Operating Expenses | (20,681) | (14,313) | (33,565) | (27,506) | |
Lease Expense | (276) | (276) | (581) | (551) | |
Property Taxes and Insurance | (2,316) | (720) | (3,077) | (1,475) | |
General and Administrative | (2,116) | (1,333) | (3,348) | (2,738) | |
Depreciation and Amortization | (3,335) | (1,572) | (5,009) | (3,138) | |
Interest Expense | (4,658) | (1,635) | (6,264) | (3,257) | |
Acquisition Costs | (1,499) | (1,499) | |||
Loss allocated to Noncontrolling Interests | (72) | (62) | (40) | (86) | |
Net Income | $ 3,414 | $ 2,159 | $ 2,067 | $ 1,069 |
Investment In Unconsolidated 42
Investment In Unconsolidated Joint Ventures (Reconciliation Of Share In Unconsolidated Joint Ventures' Equity In Investment In Unconsolidated Joint Ventures) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Investment In Unconsolidated Joint Ventures [Abstract] | ||
Company's share of equity recorded on the joint ventures' financial statements | $ 126,224 | $ 22,698 |
Adjustment to reconcile the Company's share of equity recorded on the joint ventures' financial statements to our investment in unconsolidated joint ventures | (108,980) | (12,382) |
Investment in Unconsolidated Joint Ventures | $ 17,244 | $ 10,316 |
Other Assets (Narrative) (Detai
Other Assets (Narrative) (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Other Assets [Abstract] | ||
Deferred Tax Assets, Net | $ 17,660,000 | $ 14,590,000 |
Interest bearing deposits related to acquisition of other hotel properties | $ 0 | $ 5,000,000 |
Other Assets (Other Assets) (De
Other Assets (Other Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Other Assets [Abstract] | ||
Investment in Statutory Trusts | $ 1,548 | $ 1,548 |
Prepaid Expenses | 9,096 | 14,434 |
Deferred Tax Asset, Net of Valuation Allowance of $804 | 17,660 | 14,590 |
Other | 9,078 | 9,386 |
Total Other Assets | 37,382 | 39,958 |
Valuation allowance | $ 804 | $ 804 |
Debt (Mortgages Narrative) (Det
Debt (Mortgages Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($)property | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)property | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Mortgages and Notes Payable [Abstract] | |||||
Liabilities related to assets held for sale | $ 81,333 | $ 81,333 | |||
Mortgages [Member] | |||||
Mortgages and Notes Payable [Abstract] | |||||
Mortgage Indebtedness | 495,026 | 495,026 | $ 545,036 | ||
Net Unamortized Premium | 2,863 | 2,863 | 3,503 | ||
Net Unamortized Deferred Financing Costs | (3,283) | (3,283) | (3,880) | ||
Mortgages payable | $ 494,606 | $ 494,606 | $ 544,659 | ||
Number Of Properties With Unmet Debt Service Coverage Ratio Covenants | property | 2 | 2 | |||
Interest expense | $ 5,720 | $ 6,829 | $ 11,990 | $ 13,968 | |
Debt covenant compliance status | We have determined that certain debt service coverage ratio covenants contained in the loan agreements securing two of our hotel properties were not met as of June 30, 2016. Pursuant to these loan agreements, the lender has elected to escrow the operating cash flow for these properties. However, these covenants do not constitute an event of default for these loan agreements. | ||||
Maturity date range, start | Oct. 1, 2016 | ||||
Maturity date range, end | Feb. 1, 2024 | ||||
Minimum [Member] | Mortgages [Member] | |||||
Mortgages and Notes Payable [Abstract] | |||||
Debt Instrument, Interest Rate, Effective Percentage | 2.70% | 2.70% | |||
Maximum [Member] | Mortgages [Member] | |||||
Mortgages and Notes Payable [Abstract] | |||||
Debt Instrument, Interest Rate, Effective Percentage | 6.50% | 6.50% |
Debt (Subordinated Notes Payabl
Debt (Subordinated Notes Payable Narrative) (Details) - Junior Subordinated Debt [Member] $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($)loan | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)loan | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Hersha Statutory Trust I and Hersha Statutory Trust II [Member] | |||||
Subordinated Notes Payable [Abstract] | |||||
Number of debt instruments | loan | 2 | 2 | |||
Subordinated notes payable | $ 51,548 | $ 51,548 | |||
Maturity date | Jul. 30, 2035 | ||||
Number of business days prior to quarterly interest payments for resetting rates | 2 days | ||||
Net Unamortized Deferred Financing Costs | $ 997 | $ 997 | $ 1,023 | ||
Debt instrument, interest rate during period (in hundredths) | 3.71% | 3.31% | 3.63% | 3.28% | |
Interest expense | $ 478 | $ 426 | $ 937 | $ 845 | |
Hersha Statutory Trust I [Member] | |||||
Subordinated Notes Payable [Abstract] | |||||
Subordinated notes payable | 25,774 | $ 25,774 | |||
Debt instrument, description of variable rate basis | LIBOR | ||||
Debt instrument, basis spread on variable rate (in hundredths) | 3.00% | ||||
Hersha Statutory Trust II [Member] | |||||
Subordinated Notes Payable [Abstract] | |||||
Subordinated notes payable | $ 25,774 | $ 25,774 | |||
Debt instrument, description of variable rate basis | LIBOR | ||||
Debt instrument, basis spread on variable rate (in hundredths) | 3.00% |
Debt (Credit Facilities Narrati
Debt (Credit Facilities Narrative) (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Revolving Line of Credit [Abstract] | |||||
Outstanding borrowings on term loans | $ 508,633,000 | $ 508,633,000 | $ 547,780,000 | ||
Line of Credit | 27,000,000 | ||||
Line of credit facility covenant minimum tangible net worth | $ 900,000,000 | $ 900,000,000 | |||
Line of credit facility covenant percentage of net cash proceeds of issuance and sales of equity interests (in hundredths) | 75.00% | ||||
Line of credit facility covenant maximum annual distributions (in hundredths) | 95.00% | 95.00% | |||
Line of credit facility covenant maximum leverage ratio (in hundredths) | 60.00% | 60.00% | |||
Interest Rate Swap [Member] | |||||
Revolving Line of Credit [Abstract] | |||||
Notional amount | $ 150,000,000 | $ 150,000,000 | |||
Minimum [Member] | |||||
Revolving Line of Credit [Abstract] | |||||
Line of credit facility covenant fixed charge coverage ratio | 1.50 | 1.50 | |||
Maximum [Member] | |||||
Revolving Line of Credit [Abstract] | |||||
Line of credit facility covenant maximum secured debt leverage ratio (in hundredths) | 45.00% | 45.00% | |||
$300 Million Senior Unsecured Term Loan Agreement ("Second Term Loan")[Member] | |||||
Revolving Line of Credit [Abstract] | |||||
Debt instrument, face amount | $ 300,000,000 | $ 300,000,000 | |||
Maturity date | Aug. 10, 2020 | ||||
$300 Million Senior Unsecured Term Loan Agreement ("Second Term Loan")[Member] | Minimum [Member] | |||||
Revolving Line of Credit [Abstract] | |||||
Basis spread on variable rate (in hundredths) | 1.50% | ||||
$300 Million Senior Unsecured Term Loan Agreement ("Second Term Loan")[Member] | Maximum [Member] | |||||
Revolving Line of Credit [Abstract] | |||||
Basis spread on variable rate (in hundredths) | 2.25% | ||||
$500 Million Senior Unsecured Credit Agreement ("Credit Facility") [Member] | |||||
Revolving Line of Credit [Abstract] | |||||
Revolving line of credit, current borrowing capacity | 500,000,000 | $ 500,000,000 | |||
Revolving line of credit, maximum borrowing capacity | 850,000,000 | $ 850,000,000 | |||
Line of credit, expiration date | Feb. 28, 2018 | ||||
Renewal period of line of credit | 1 year | ||||
Line of credit, remaining borrowing capacity | 246,710,000 | $ 246,710,000 | |||
$250 Million Senior Unsecured Revolving Line Of Credit ("Line of Credit") [Member] | |||||
Revolving Line of Credit [Abstract] | |||||
Line of Credit | 27,000,000 | ||||
$250 Million Senior Unsecured Revolving Line Of Credit ("Line of Credit") [Member] | Minimum [Member] | |||||
Revolving Line of Credit [Abstract] | |||||
Basis spread on variable rate (in hundredths) | 1.70% | ||||
$250 Million Senior Unsecured Revolving Line Of Credit ("Line of Credit") [Member] | Maximum [Member] | |||||
Revolving Line of Credit [Abstract] | |||||
Basis spread on variable rate (in hundredths) | 2.45% | ||||
$250 Million Unsecured Term Loan ("First Term Loan") [Member] | |||||
Revolving Line of Credit [Abstract] | |||||
Revolving line of credit, current borrowing capacity | $ 250,000,000 | $ 250,000,000 | |||
$250 Million Unsecured Term Loan ("First Term Loan") [Member] | Minimum [Member] | |||||
Revolving Line of Credit [Abstract] | |||||
Basis spread on variable rate (in hundredths) | 1.60% | ||||
Fixed interest rate | 2.914% | 2.914% | |||
$250 Million Unsecured Term Loan ("First Term Loan") [Member] | Maximum [Member] | |||||
Revolving Line of Credit [Abstract] | |||||
Basis spread on variable rate (in hundredths) | 2.35% | ||||
Revolving Line Of Credit [Member] | |||||
Revolving Line of Credit [Abstract] | |||||
Revolving line of credit, current borrowing capacity | $ 250,000,000 | $ 250,000,000 | |||
Description of variable rate basis | one month U.S. LIBOR | ||||
Line of credit, financial covenant terms | The Credit Facility and the Second Term Loan agreements include certain financial covenants and require that we maintain: (1) a minimum tangible net worth (calculated as total assets, plus accumulated depreciation, less total liabilities, intangibles and other defined adjustments) of $900,000, plus an amount equal to 75% of the net cash proceeds of all issuances and primary sales of equity interests of the parent guarantor or any of its subsidiaries consummated following the closing date; (2) annual distributions not to exceed 95% of adjusted funds from operations; and (3) certain financial ratios, including the following:· a fixed charge coverage ratio of not less than 1.50 to 1.00;· a maximum leverage ratio of not more than 60%; and· a maximum secured debt leverage ratio of 45%.The Company is in compliance with each of the covenants listed above as of June 30, 2016. | ||||
Interest Expense, on credit facilities | $ 4,083,000 | $ 2,238,000 | $ 8,563,000 | $ 3,980,000 | |
Line of credit, weighted average interest rate (in hundredths) | 2.78% | 2.75% | 2.79% | 2.76% | |
$500 Million Senior Unsecured Credit Agreement And $300 Million Senior Unsecured Term Loan Agreement [Member] | |||||
Revolving Line of Credit [Abstract] | |||||
Deferred costs, net of accumulated amortization | $ 1,887,000 | $ 1,887,000 | $ 2,220,000 |
Debt (Summary Of The Balances O
Debt (Summary Of The Balances Outstanding And Interest Rate Spread) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Outstanding Balance, Line of credit | $ 27,000 | |
$250 Million Senior Unsecured Revolving Line Of Credit ("Line of Credit") [Member] | ||
Outstanding Balance, Line of credit | 27,000 | |
$250 Million Unsecured Term Loan ("First Term Loan") [Member] | ||
Outstanding Balance, term loans | $ 210,520 | 250,000 |
$300 Million Senior Unsecured Term Loan Agreement ("Second Term Loan")[Member] | ||
Outstanding Balance, term loans | $ 300,000 | $ 300,000 |
Minimum [Member] | $250 Million Senior Unsecured Revolving Line Of Credit ("Line of Credit") [Member] | ||
Basis spread on variable rate (in hundredths) | 1.70% | |
Minimum [Member] | $250 Million Unsecured Term Loan ("First Term Loan") [Member] | ||
Basis spread on variable rate (in hundredths) | 1.60% | |
Minimum [Member] | $300 Million Senior Unsecured Term Loan Agreement ("Second Term Loan")[Member] | ||
Basis spread on variable rate (in hundredths) | 1.50% | |
Maximum [Member] | $250 Million Senior Unsecured Revolving Line Of Credit ("Line of Credit") [Member] | ||
Basis spread on variable rate (in hundredths) | 2.45% | |
Maximum [Member] | $250 Million Unsecured Term Loan ("First Term Loan") [Member] | ||
Basis spread on variable rate (in hundredths) | 2.35% | |
Maximum [Member] | $300 Million Senior Unsecured Term Loan Agreement ("Second Term Loan")[Member] | ||
Basis spread on variable rate (in hundredths) | 2.25% |
Debt (Capitalized Interest, Def
Debt (Capitalized Interest, Deferred Financing Costs and Debt Payoff Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Debt [Abstract] | ||||
Amortization of deferred costs | $ 640 | $ 657 | $ 1,300 | $ 1,377 |
Unamortized deferred costs and defeasance premiums expensed | $ 1,049 | $ 222 | $ 1,091 | $ 222 |
Debt (New Debt_Refinance Narrat
Debt (New Debt/Refinance Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016USD ($)property | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)propertyloan | Jun. 30, 2015USD ($) | |
New Debt/Refinance [Abstract] | ||||
Unamortized deferred costs and defeasance premiums expensed | $ 1,049 | $ 222 | $ 1,091 | $ 222 |
Hampton Inn Herald Square, NY and Hampton Inn Chelsea, NY [Member] | ||||
New Debt/Refinance [Abstract] | ||||
Number Of Mortgages | loan | 2 | |||
Number of Real Estate Properties | property | 2 | 2 | ||
Mortgage loan extinguishment | $ 39,480 | |||
Unamortized deferred costs and defeasance premiums expensed | 1,049 | |||
Hampton Inn Herald Square, NY [Member] | ||||
New Debt/Refinance [Abstract] | ||||
Mortgage loan | $ 26,500 | 26,500 | ||
Hampton Inn, Chelsea, NY [Member] | ||||
New Debt/Refinance [Abstract] | ||||
Mortgage loan | $ 36,000 | 36,000 | ||
Hawthorn Suites, Franklin, MA [Member] | ||||
New Debt/Refinance [Abstract] | ||||
Mortgage loan extinguishment | 8,500 | |||
Unamortized deferred costs and defeasance premiums expensed | $ 42 | |||
Hyatt Union Square, New York, NY [Member] | ||||
New Debt/Refinance [Abstract] | ||||
Mortgage loan extinguishment | 55,000 | |||
Mortgage loan | $ 55,750 | $ 55,750 | ||
Debt instrument, basis spread on variable rate (in hundredths) | 2.30% | |||
Unamortized deferred costs and defeasance premiums expensed | $ 212 | |||
Derivative, Cap Interest Rate | 3.00% | 3.00% | ||
Courtyard by Marriott, Brookline, MA [Member] | ||||
New Debt/Refinance [Abstract] | ||||
Mortgage loan extinguishment | $ 38,913 | |||
Unamortized deferred costs and defeasance premiums expensed | $ 10 |
Commitments And Contingencies51
Commitments And Contingencies And Related Party Transactions (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Management Agreements [Abstract] | |||||
Term of management agreements with HHMLP | 5 years | ||||
Base management fee as percentage of gross revenues (in hundredths) | 3.00% | ||||
Base management fees incurred | $ 3,584 | $ 3,676 | $ 6,609 | $ 6,376 | |
Franchise Agreements [Abstract] | |||||
Terms of franchise agreements, minimum | 10 years | ||||
Terms of franchise agreements, maximum | 20 years | ||||
Franchise fee expense | 6,753 | 7,642 | $ 12,647 | 13,231 | |
Accounting and Information Technology Fees [Abstract] | |||||
Monthly fees for accounting services per property for hotels managed by HHMLP, minimum | 2 | ||||
Monthly fees for accounting services per property for hotels managed by HHMLP, maximum | 3 | ||||
Monthly information technology fees per property for hotels managed by HHMLP, minimum | 1 | ||||
Monthly information technology fees per property for hotels managed by HHMLP, maximum | 2 | ||||
Accounting fees | 392 | 361 | 748 | 721 | |
Information technology fees | 141 | 107 | $ 231 | 213 | |
Capital Expenditure Fees [Abstract] | |||||
Fee on all capital expenditures and pending renovation projects at the properties (in hundredths) | 5.00% | ||||
Fees incurred on capital expenditures | 282 | 236 | $ 729 | 382 | |
Acquisitions From Affiliates [Abstract] | |||||
Period of right of first refusal per option agreement with officers and affiliated trustees after termination | 1 year | ||||
Hotel Supplies [Abstract] | |||||
Hotel supplies | 39 | 96 | $ 60 | 139 | |
Charges for capital expenditure purchases | 432 | 1,434 | 1,314 | 2,794 | |
Capital expenditures included in accounts payable | 7 | $ 1 | |||
Due From Related Parties [Abstract] | |||||
Due from related parties | 14,061 | 14,061 | 6,243 | ||
Due to Related Parties [Abstract] | |||||
Due to related parties | 18 | 18 | $ 8,789 | ||
Hotel Ground Rent [Abstract] | |||||
Rent expense related to ground leases | $ 892 | $ 727 | $ 1,785 | $ 1,455 |
Fair Value Measurements And D52
Fair Value Measurements And Derivative Instruments (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Derivatives, Fair Value [Line Items] | |||||
Unrealized gain (loss) recognized in accumulated other comprehensive income | $ 16 | $ (65) | $ (221) | $ (621) | |
Unrealized gain (loss) reclassified from accumulated other comprehensive income to interest expense | (140) | $ 372 | 319 | $ 710 | |
Gain (loss) to be reclassified to interest expense during next 12 months | 304 | 304 | |||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Carrying value and estimated fair value of debt | 1,053,790 | 1,053,790 | $ 1,169,377 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Carrying value and estimated fair value of debt | $ 1,053,283 | $ 1,053,283 | $ 1,170,901 |
Fair Value Measurements And D53
Fair Value Measurements And Derivative Instruments (Fair Value Of Interest Rate Swaps And Caps) (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Jun. 10, 2015 | |
Derivatives, Fair Value [Line Items] | ||||
Estimated Fair Value | $ (244) | $ 21 | ||
Settlement of interest rate cap | $ 430 | |||
Interest Rate Cap [Member] | Courtyard, LA Westside, Culver City, CA [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Strike Rate | 3.00% | |||
Index: Variable interest rate basis | 3.00% | |||
Effective Date | Oct. 27, 2015 | |||
Maturity Date | Sep. 29, 2017 | |||
Notional amount | $ 35,000 | |||
Estimated Fair Value | $ 13 | 19 | ||
Interest Rate Cap [Member] | Hyatt Union Square, New York, NY [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Strike Rate | 3.00% | |||
Index: Variable interest rate basis | 2.30% | |||
Effective Date | Jun. 10, 2015 | |||
Maturity Date | Jun. 10, 2019 | |||
Notional amount | $ 55,750 | |||
Estimated Fair Value | $ 15 | 136 | ||
Interest Rate Cap [Member] | Refinanced Hyatt Union Square, New York, NY [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Strike Rate | 2.00% | 3.00% | ||
Index: Variable interest rate basis | 4.19% | |||
Effective Date | Apr. 9, 2013 | |||
Maturity Date | Apr. 9, 2016 | |||
Notional amount | $ 55,000 | |||
Interest Rate Swap [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional amount | $ 150,000 | |||
Interest Rate Swap [Member] | Unsecured Term Loan [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Strike Rate | 0.545% | |||
Index: Variable interest rate basis | 2.35% | |||
Effective Date | Nov. 5, 2012 | |||
Maturity Date | Nov. 5, 2016 | |||
Notional amount | $ 100,000 | |||
Estimated Fair Value | $ (29) | 84 | ||
Interest Rate Swap [Member] | Unsecured Term Loan II [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Strike Rate | 0.60% | |||
Index: Variable interest rate basis | 2.35% | |||
Effective Date | Dec. 18, 2012 | |||
Maturity Date | Nov. 5, 2016 | |||
Notional amount | $ 50,000 | |||
Estimated Fair Value | $ (24) | 18 | ||
Interest Rate Swap [Member] | Duane Street Hotel, New York, NY [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Strike Rate | 0.933% | |||
Index: Variable interest rate basis | 4.50% | |||
Effective Date | Feb. 1, 2014 | |||
Maturity Date | Feb. 1, 2017 | |||
Notional amount | $ 9,071 | |||
Estimated Fair Value | $ (24) | (21) | ||
Interest Rate Swap [Member] | Hilton Garden Inn 52nd Street, New York, NY [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Strike Rate | 1.152% | |||
Index: Variable interest rate basis | 2.90% | |||
Effective Date | Jun. 1, 2015 | |||
Maturity Date | Feb. 21, 2017 | |||
Notional amount | $ 44,775 | |||
Estimated Fair Value | $ (195) | $ (215) |
Share Based Payments (Narrative
Share Based Payments (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
LTIP Unit Issuance (in shares) | 0 | ||||
Stock based compensation expense | $ 1,873 | $ 1,655 | $ 4,279 | $ 3,194 | |
Unearned Compensation | $ 3,034 | $ 3,034 | $ 2,484 | ||
Shares Issued (in shares) | 655,120 | ||||
Shares Vested (in shares) | 338,855 | 338,855 | 206,708 | ||
Annual Long Term Equity Incentive Programs [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock based compensation expense | $ 952 | 934 | $ 2,362 | 2,130 | |
Unearned Compensation | 3,034 | $ 3,034 | $ 2,484 | ||
2016 Multi-Year Long Term Equity Incentive Program (“2016 Multi-Year EIP”) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Terms of Share-based payment awards | On March 17, 2016, the Compensation Committee approved the 2016 Multi-Year Long Term Equity Incentive Program ("2016 Multi-Year EIP"). This program has a three-year performance period which commenced on January 1, 2016 and ends December 31, 2018. As of June 30, 2016, no shares or LTIP Units have been issued to the executive officers in settlement of 2016 Multi-Year EIP awards. | ||||
Multi-Year LTIP [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock based compensation expense | 343 | 217 | $ 1,184 | 384 | |
Unearned Compensation | $ 2,254 | $ 2,254 | 1,548 | ||
Shareholders return as percentage of award for achievement level one (in hundredths) | 37.50% | 37.50% | |||
Shareholders return as percentage of award for achievement level two (in hundredths) | 37.50% | 37.50% | |||
Shareholders return as percentage of award for achievement level three (in hundredths) | 25.00% | 25.00% | |||
Shares Issued (in shares) | 110,849 | ||||
Shares Vested (in shares) | 55,424 | 55,424 | |||
Multi-year LTIP Trustee [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock based compensation expense | $ 15 | 15 | $ 30 | 30 | |
Unearned Compensation | $ 90 | $ 90 | $ 67 | ||
Shares Vested (in shares) | 3,005 | 3,005 | 3,005 | ||
Percentage premium on retainer equity option (in hundredths) | 25.00% | 25.00% | |||
Restricted Common Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock based compensation expense | $ 135 | 107 | $ 256 | 195 | |
Restricted Share Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unearned Compensation | $ 366 | $ 366 | $ 491 | ||
Shares Issued (in shares) | 66,753 | ||||
Shares Vested (in shares) | 51,133 | 51,133 | 30,863 | ||
Annual Retainer [Member] | Multi-year LTIP Trustee [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock based compensation expense | $ 37 | 23 | $ 37 | 47 | |
Board Of Trustees [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock based compensation expense | 319 | 271 | $ 319 | 271 | |
Shares Issued (in shares) | 17,795 | ||||
Share Price on date of grant (in dollars per share) | $ 17.96 | ||||
Non-employees [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock based compensation expense | 72 | $ 88 | $ 91 | $ 137 | |
Unearned Compensation | $ 79 | $ 79 | $ 90 | ||
Shares Issued (in shares) | 14,738 | ||||
Shares Vested (in shares) | 10,988 | 10,988 | 3,762 |
Share Based Payments (Summary O
Share Based Payments (Summary Of Unvested Share Awards Issued To Executives And Employees) (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Unvested Share Awards [Abstract] | ||
Shares Issued (in shares) | 655,120 | |
Shares Vested (in shares) | 338,855 | 206,708 |
Unearned Compensation | $ 3,034 | $ 2,484 |
Issued 12-23-2014 [Member] | ||
Unvested Share Awards [Abstract] | ||
Shares Issued (in shares) | 258,899 | |
Vesting Period | 5 years | |
Shares Vested (in shares) | 172,599 | 86,299 |
Unearned Compensation | $ 1,005 | $ 1,553 |
Restricted Share Awards [Member] | ||
Unvested Share Awards [Abstract] | ||
Shares Issued (in shares) | 66,753 | |
Shares Vested (in shares) | 51,133 | 30,863 |
Unearned Compensation | $ 366 | $ 491 |
Restricted Share Awards [Member] | Issued 12-23-2014 [Member] | ||
Unvested Share Awards [Abstract] | ||
Vesting Schedule (in hundredths) | 33.00% | |
Restricted Share Awards [Member] | Original Year Of Issuance Date 2016 [Member] | ||
Unvested Share Awards [Abstract] | ||
Shares Issued (in shares) | 6,261 | |
Share Price on date of grant (in dollars per share) | $ 21.11 | |
Vesting Period | 2 years | |
Vesting Schedule (in hundredths) | 50.00% | |
Shares Vested (in shares) | 497 | |
Unearned Compensation | $ 97 | |
Restricted Share Awards [Member] | Original Year Of Issuance Date 2015 [Member] | ||
Unvested Share Awards [Abstract] | ||
Shares Issued (in shares) | 23,492 | |
Shares Vested (in shares) | 13,636 | 600 |
Unearned Compensation | $ 269 | $ 419 |
Restricted Share Awards [Member] | Original Year Of Issuance Date 2014 [Member] | ||
Unvested Share Awards [Abstract] | ||
Shares Issued (in shares) | 11,455 | |
Vesting Period | 2 years | |
Vesting Schedule (in hundredths) | 50.00% | |
Shares Vested (in shares) | 11,455 | 6,619 |
Unearned Compensation | $ 54 | |
Restricted Share Awards [Member] | Original Year Of Issuance Date 2013 [Member] | ||
Unvested Share Awards [Abstract] | ||
Shares Issued (in shares) | 11,899 | |
Share Price on date of grant (in dollars per share) | $ 22.56 | |
Shares Vested (in shares) | 11,899 | 11,199 |
Unearned Compensation | $ 7 | |
Restricted Share Awards [Member] | Original Year Of Issuance Date 2012 [Member] | ||
Unvested Share Awards [Abstract] | ||
Shares Issued (in shares) | 13,646 | |
Share Price on date of grant (in dollars per share) | $ 21.12 | |
Shares Vested (in shares) | 13,646 | 12,445 |
Unearned Compensation | $ 11 | |
Minimum [Member] | Restricted Share Awards [Member] | Original Year Of Issuance Date 2015 [Member] | ||
Unvested Share Awards [Abstract] | ||
Share Price on date of grant (in dollars per share) | $ 21.76 | |
Vesting Period | 2 years | |
Vesting Schedule (in hundredths) | 25.00% | |
Minimum [Member] | Restricted Share Awards [Member] | Original Year Of Issuance Date 2014 [Member] | ||
Unvested Share Awards [Abstract] | ||
Share Price on date of grant (in dollars per share) | $ 26 | |
Minimum [Member] | Restricted Share Awards [Member] | Original Year Of Issuance Date 2013 [Member] | ||
Unvested Share Awards [Abstract] | ||
Vesting Period | 2 years | |
Vesting Schedule (in hundredths) | 25.00% | |
Minimum [Member] | Restricted Share Awards [Member] | Original Year Of Issuance Date 2012 [Member] | ||
Unvested Share Awards [Abstract] | ||
Vesting Period | 2 years | |
Vesting Schedule (in hundredths) | 25.00% | |
Maximum [Member] | Restricted Share Awards [Member] | Original Year Of Issuance Date 2015 [Member] | ||
Unvested Share Awards [Abstract] | ||
Share Price on date of grant (in dollars per share) | $ 28.09 | |
Vesting Period | 4 years | |
Vesting Schedule (in hundredths) | 50.00% | |
Maximum [Member] | Restricted Share Awards [Member] | Original Year Of Issuance Date 2014 [Member] | ||
Unvested Share Awards [Abstract] | ||
Share Price on date of grant (in dollars per share) | $ 27 | |
Maximum [Member] | Restricted Share Awards [Member] | Original Year Of Issuance Date 2013 [Member] | ||
Unvested Share Awards [Abstract] | ||
Vesting Period | 4 years | |
Vesting Schedule (in hundredths) | 50.00% | |
Maximum [Member] | Restricted Share Awards [Member] | Original Year Of Issuance Date 2012 [Member] | ||
Unvested Share Awards [Abstract] | ||
Vesting Period | 4 years | |
Vesting Schedule (in hundredths) | 50.00% | |
2015 Annual Long Term Equity Incentive Program (“2015 Annual EIP”) [Member] | Issued 03-30-2016 [Member] | ||
Unvested Share Awards [Abstract] | ||
Shares Issued (in shares) | 183,396 | |
Vesting Period | 3 years | |
Vesting Schedule (in hundredths) | 25.00% | |
Shares Vested (in shares) | 45,847 | |
Unearned Compensation | $ 1,450 | |
2014 Annual Long Term Equity Incentive Program (“2014 Annual EIP”) [Member] | Issued 03-30-2015 [Member] | ||
Unvested Share Awards [Abstract] | ||
Shares Issued (in shares) | 128,832 | |
Vesting Period | 3 years | |
Vesting Schedule (in hundredths) | 25.00% | |
Shares Vested (in shares) | 64,415 | 64,415 |
Unearned Compensation | $ 492 | $ 758 |
2013 Annual Long Term Equity Incentive Program (“2013 Annual EIP”) [Member] | Issued 12-23-2014 [Member] | ||
Unvested Share Awards [Abstract] | ||
Shares Issued (in shares) | 83,993 | |
Vesting Period | 3 years | |
Vesting Schedule (in hundredths) | 25.00% | |
Shares Vested (in shares) | 55,994 | 55,994 |
Unearned Compensation | $ 87 | $ 173 |
Approved aggregate number of LTIP units to certain officers | 487,081 | |
2016 Multi-Year Long Term Equity Incentive Program (“2016 Multi-Year EIP”) [Member] | Compensation Committee Approval Date March 18, 2016 [Member] | ||
Unvested Share Awards [Abstract] | ||
Performance Period | 1/1/2016 to 12/31/2018 | |
Unearned Compensation | $ 1,036 | |
2015 Multi-Year Long Term Equity Incentive Program (“2015 Multi-Year EIP”) [Member] | Compensation Committee Approval Date March 18, 2015 [Member] | ||
Unvested Share Awards [Abstract] | ||
Performance Period | 1/1/2015 to 12/31/2017 | |
Unearned Compensation | $ 496 | $ 596 |
2014 Multi-Year Long Term Equity Incentive Program (“2014 Multi-Year EIP”) [Member] | Compensation Committee Approval Date April 11, 2014 [Member] | ||
Unvested Share Awards [Abstract] | ||
Performance Period | 1/1/2014 to 12/31/2016 | |
Unearned Compensation | $ 425 | 567 |
2013 Multi-Year Long Term Equity Incentive Program (“2013 Multi-Year EIP”) [Member] | Compensation Committee Approval Date April 15, 2013 [Member] | ||
Unvested Share Awards [Abstract] | ||
Shares Issued (in shares) | 110,849 | |
LTIP Issuance Date | Mar. 30, 2016 | |
Performance Period | 1/1/2013 to 12/31/2015 | |
Shares Vested (in shares) | 55,424 | |
Unearned Compensation | $ 297 | 385 |
Multi-Year LTIP [Member] | ||
Unvested Share Awards [Abstract] | ||
Shares Issued (in shares) | 110,849 | |
Shares Vested (in shares) | 55,424 | |
Unearned Compensation | $ 2,254 | $ 1,548 |
Multi-year LTIP Trustee [Member] | ||
Unvested Share Awards [Abstract] | ||
Shares Vested (in shares) | 3,005 | 3,005 |
Unearned Compensation | $ 90 | $ 67 |
Multi-year LTIP Trustee [Member] | Issued 03-30-2016 [Member] | ||
Unvested Share Awards [Abstract] | ||
Shares Issued (in shares) | 2,500 | |
Vesting Period | 3 years | |
Vesting Schedule (in hundredths) | 33.00% | |
Unearned Compensation | $ 44 |
Share Based Payments (Summary56
Share Based Payments (Summary Of Unvested Share Awards Issued To Trustees) (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Unvested Share Awards [Abstract] | ||
Shares Issued (in shares) | 655,120 | |
Shares Vested (in shares) | 338,855 | 206,708 |
Unearned Compensation | $ 3,034 | $ 2,484 |
Annual Retainer [Member] | Issued 03-30-2016 [Member] | ||
Unvested Share Awards [Abstract] | ||
Shares Issued (in shares) | 5,289 | |
Share Price on date of grant (in dollars per share) | $ 21.11 | |
Vesting Period | 9 months | |
Vesting Schedule (in hundredths) | 100.00% | |
Unearned Compensation | $ 74 | |
Multi-year LTIP Trustee [Member] | ||
Unvested Share Awards [Abstract] | ||
Shares Vested (in shares) | 3,005 | 3,005 |
Unearned Compensation | $ 90 | $ 67 |
Multi-year LTIP Trustee [Member] | Issued 03-30-2016 [Member] | ||
Unvested Share Awards [Abstract] | ||
Shares Issued (in shares) | 2,500 | |
Vesting Period | 3 years | |
Vesting Schedule (in hundredths) | 33.00% | |
Unearned Compensation | $ 44 | |
Multi-year LTIP Trustee [Member] | Issued 12-30-2014 [Member] | ||
Unvested Share Awards [Abstract] | ||
Shares Issued (in shares) | 2,500 | |
Vesting Period | 3 years | |
Vesting Schedule (in hundredths) | 33.00% | |
Shares Vested (in shares) | 835 | 835 |
Unearned Compensation | $ 36 | $ 48 |
Multi-year LTIP Trustee [Member] | Issued 12-27-2013 [Member] | ||
Unvested Share Awards [Abstract] | ||
Shares Issued (in shares) | 3,000 | |
Vesting Period | 3 years | |
Vesting Schedule (in hundredths) | 33.00% | |
Shares Vested (in shares) | 2,170 | 2,170 |
Unearned Compensation | $ 10 | $ 19 |
Share Based Payments (Summary57
Share Based Payments (Summary Of Unvested Share Awards Issued To Nonemployees) (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Unvested Share Awards [Abstract] | ||
Shares Issued (in shares) | 655,120 | |
Shares Vested (in shares) | 338,855 | 206,708 |
Unearned Compensation | $ 3,034 | $ 2,484 |
Non-employees [Member] | ||
Unvested Share Awards [Abstract] | ||
Shares Issued (in shares) | 14,738 | |
Shares Vested (in shares) | 10,988 | 3,762 |
Unearned Compensation | $ 79 | $ 90 |
Non-employees [Member] | Issued 03-30-2016 [Member] | ||
Unvested Share Awards [Abstract] | ||
Shares Issued (in shares) | 7,500 | |
Share Price on date of grant (in dollars per share) | $ 21.11 | |
Vesting Period | 2 years | |
Vesting Schedule (in hundredths) | 50.00% | |
Shares Vested (in shares) | 3,750 | |
Unearned Compensation | $ 79 | |
Non-employees [Member] | Issued 03-27-2015 [Member] | ||
Unvested Share Awards [Abstract] | ||
Shares Issued (in shares) | 7,238 | |
Share Price on date of grant (in dollars per share) | $ 25.88 | |
Vesting Period | 2 years | |
Vesting Schedule (in hundredths) | 50.00% | |
Shares Vested (in shares) | 7,238 | 3,762 |
Unearned Compensation | $ 90 |
Earnings Per Share (Reconciliat
Earnings Per Share (Reconciliation Of Earnings Per Share) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
BASIC AND DILUTED [Abstract] | |||||
Net Income | $ 114,959 | $ 19,626 | $ 106,540 | $ 15,237 | |
(Income) loss allocated to Noncontrolling Interests | (4,748) | (405) | (4,061) | 38 | |
Distributions to Preferred Shareholders | (4,000) | (3,589) | (7,589) | (7,178) | |
Dividends Paid on Unvested Restricted Shares and LTIP Units | (112) | (112) | (257) | (253) | |
Extinguishment of Issuance Costs Upon Redemption of Series B Preferred Stock | (4,021) | (4,021) | |||
Income (Loss) from Continuing Operations attributable to Common Shareholders | $ 102,078 | $ 15,520 | $ 90,612 | $ 7,844 | |
Denominator [Abstract] | |||||
Weighted average number of common shares - basic (in shares) | 43,427,726 | 48,530,716 | 43,903,526 | 49,053,846 | |
Effect of dilutive securities [Abstract] | |||||
Restricted Stock Awards and LTIP Units (unvested) (in shares) | 264,176 | 299,603 | 183,458 | 268,053 | |
Contingently Issued Shares (in shares) | 171,675 | 213,595 | 297,985 | 254,423 | |
Weighted average number of common shares - diluted (in shares) | [1] | 43,863,577 | 49,043,914 | 44,384,969 | 49,576,322 |
[1] | Income (loss) allocated to noncontrolling interest in HHLP has been excluded from the numerator and Common Units and Vested LTIP Units have been omitted from the denominator for the purpose of computing diluted earnings per share since including these amounts in the numerator and denominator would have no impact. In addition, potentially dilutive common shares, if any, have been excluded from the denominator if they are anti-dilutive to income (loss) applicable to common shareholders. |
Cash Flow Disclosures And Non59
Cash Flow Disclosures And Non Cash Investing And Financing Activities (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash Flow Disclosures And Non Cash Investing And Financing Activities [Abstract] | ||
Interest paid | $ 22,878 | $ 19,757 |
Cash Flow Disclosures And Non60
Cash Flow Disclosures And Non Cash Investing And Financing Activities (Non-cash Investing And Financing Activities) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Non-cash Investing and Financing Activities [Abstract] | ||
Common Shares issued as part of the Dividend Reinvestment Plan | $ 31 | $ 32 |
Debt assumed, including premium | 14,750 | $ 28,902 |
Deposit paid in prior period towards acquisition which closed in current period | 5,000 | |
Cash paid for income taxes | 669 | |
Accrued payables for fixed assets placed into service | 467 | |
Contribution of fixed assets to joint venture | $ 264,658 |