Sunstone Hotel Investors (SHO) 10-Q 7 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 03, 2015
Document and Entity Information
Entity Registrant Name	Sunstone Hotel Investors, Inc.
Entity Central Index Key	1,295,810
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		208,696,968
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 98,760	$ 222,096
Restricted cash	88,456	82,074
Accounts receivable, net	52,174	34,227
Inventories	1,350	1,439
Prepaid expenses	11,616	14,909
Total current assets	252,356	354,745
Investment in hotel properties, net	3,532,156	3,538,129
Deferred financing fees, net	10,552	8,201
Goodwill	9,405	9,405
Other assets, net	16,329	14,485
Total assets	3,820,798	3,924,965
Current liabilities:
Accounts payable and accrued expenses	35,806	32,577
Accrued payroll and employee benefits	25,886	31,919
Dividends payable	12,735	76,694
Other current liabilities	44,174	36,466
Current portion of notes payable	135,825	121,328
Total current liabilities	254,426	298,984
Notes payable, less current portion	1,182,832	1,307,964
Capital lease obligations, less current portion	15,576	15,576
Other liabilities	35,265	33,607
Total liabilities	$ 1,488,099	$ 1,656,131
Commitments and contingencies (Note 11)
Preferred stock
Common stock, $0.01 par value, 500,000,000 shares authorized, 207,604,391 shares issued and outstanding at June 30, 2015 and 204,766,718 shares issued and outstanding at December 31, 2014	$ 2,076	$ 2,048
Additional paid in capital	2,456,604	2,418,567
Retained earnings	355,702	305,503
Cumulative dividends	(650,014)	(624,545)
Total stockholders' equity	2,279,368	2,216,573
Non-controlling interests in consolidated joint ventures	53,331	52,261
Total equity	2,332,699	2,268,834
Total liabilities and equity	3,820,798	3,924,965
Series D Cumulative Redeemable Preferred Stock
Preferred stock
Preferred stock 8.0% Cumulative Redeemable Preferred Stock	$ 115,000	$ 115,000

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, shares issued (in shares)	207,604,391	204,766,718
Common stock, shares outstanding (in shares)	207,604,391	204,766,718
Series D Cumulative Redeemable Preferred Stock
Preferred stock, 8.0% Cumulative Redeemable Preferred Stock, shares issued (in shares)	4,600,000	4,600,000
Preferred stock, 8.0% Cumulative Redeemable Preferred Stock, shares outstanding (in shares)	4,600,000	4,600,000
Preferred stock, 8.0% Cumulative Redeemable Preferred Stock, dividend rate (as a percent)	8.00%	8.00%
Preferred stock, 8.0% Cumulative Redeemable Preferred Stock, liquidation preference (in dollars per share)	$ 25	$ 25

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
REVENUES
Room	$ 239,678	$ 214,940	$ 432,969	$ 383,067
Food and beverage	79,265	68,733	151,449	128,644
Other operating	20,324	17,179	39,234	32,624
Total revenues	339,267	300,852	623,652	544,335
OPERATING EXPENSES
Room	57,568	53,418	111,410	102,337
Food and beverage	52,812	45,109	103,031	88,017
Other operating	5,337	5,006	10,468	10,001
Advertising and promotion	15,567	13,655	30,927	26,626
Repairs and maintenance	11,381	10,706	22,939	21,587
Utilities	8,377	7,788	17,362	16,077
Franchise costs	10,818	10,261	19,418	18,338
Property tax, ground lease and insurance	23,151	21,413	46,764	40,465
Property general and administrative	37,107	31,963	71,556	60,885
Corporate overhead	6,923	7,674	21,176	14,233
Depreciation and amortization	40,873	37,973	81,580	75,588
Total operating expenses	269,914	244,966	536,631	474,154
Operating income	69,353	55,886	87,021	70,181
Interest and other income	1,828	891	2,774	1,607
Interest expense	(17,289)	(18,331)	(34,615)	(36,614)
Loss on extinguishment of debt	(2)		(2)
Income before income taxes and discontinued operations	53,890	38,446	55,178	35,174
Income tax provision	(233)	(110)	(318)	(334)
Income from continuing operations	53,657	38,336	54,860	34,840
Income from discontinued operations		5,199		5,199
NET INCOME	53,657	43,535	54,860	40,039
Income from consolidated joint ventures attributable to non-controlling interests	(2,480)	(1,667)	(4,661)	(3,901)
Preferred stock dividends	(2,300)	(2,300)	(4,600)	(4,600)
INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS	48,877	39,568	45,599	31,538
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS	$ 48,877	$ 39,568	$ 45,599	$ 31,538
Basic and diluted per share amounts:
Income from continuing operations attributable to common stockholders (in dollars per share)	$ 0.23	$ 0.19	$ 0.22	$ 0.14
Income from discontinued operations (in dollars per share)		0.03		0.03
Basic and diluted income attributable to common stockholders per common share (in dollars per share)	$ 0.23	$ 0.22	$ 0.22	$ 0.17
Basic and diluted weighted average common shares outstanding (in shares)	207,577	182,604	207,091	181,836
Dividends declared per common share	$ 0.05	$ 0.05	$ 0.10	$ 0.10

CONSOLIDATED STATEMENTS OF EQUI

CONSOLIDATED STATEMENTS OF EQUITY - 6 months ended Jun. 30, 2015 - USD ($) $ in Thousands	Series D Cumulative Redeemable Preferred StockPreferred Stock	Series D Cumulative Redeemable Preferred StockCumulative Dividends	Common Stock	Additional Paid In Capital	Retained Earnings	Cumulative Dividends	Non-Controlling Interests in Consolidated Joint Ventures	Total
Beginning Balance at Dec. 31, 2014	$ 115,000		$ 2,048	$ 2,418,567	$ 305,503	$ (624,545)	$ 52,261	$ 2,268,834
Beginning Balance (in shares) at Dec. 31, 2014	4,600,000		204,766,718
Increase (Decrease) in Stockholders' Equity
Vesting of restricted common stock			$ 7	709				716
Vesting of restricted common stock (in shares)			710,108
Distributions to non-controlling interests							(3,591)	(3,591)
Issuance of common stock dividends			$ 21	37,328				37,349
Issuance of common stock dividends (in shares)			2,127,565
Common stock dividends and dividends payable						(20,869)		(20,869)
Preferred stock dividends and dividends payable		$ (4,600)						(4,600)
Net income					50,199		4,661	54,860
Ending Balance at Jun. 30, 2015	$ 115,000		$ 2,076	$ 2,456,604	$ 355,702	$ (650,014)	$ 53,331	$ 2,332,699
Ending Balance (in shares) at Jun. 30, 2015	4,600,000		207,604,391

CONSOLIDATED STATEMENTS OF EQU6

CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares	6 Months Ended
	Jun. 30, 2015
CONSOLIDATED STATEMENTS OF EQUITY
Issuance of common stock dividends per share (in dollars per share)	$ 0.36
Common stock dividends and dividends payable, per share (in dollars per share)	0.10
Series D preferred stock dividends and dividends payable, per share (in dollars per share)	$ 1

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 54,860	$ 40,039
Adjustments to reconcile net income to net cash provided by operating activities:
Bad debt expense	54	148
Gain on sales of assets, net	(1)	(5,254)
Loss on extinguishment of debt	2
Gain on redemption of note receivable	(939)
Loss (gain) on derivatives, net	10	(234)
Depreciation	79,406	74,228
Amortization of franchise fees and other intangibles	4,052	3,510
Amortization and write-off of deferred financing fees	1,780	1,472
Amortization of deferred stock compensation	4,681	3,316
Changes in operating assets and liabilities:
Restricted cash	2,811	(1,992)
Accounts receivable	(18,187)	(13,300)
Inventories	89	189
Prepaid expenses and other assets	631	6,055
Accounts payable and other liabilities	9,220	13,129
Accrued payroll and employee benefits	(10,302)	(3,470)
Net cash provided by operating activities	128,167	117,836
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales of other assets	5	72
Proceeds from redemption of note receivable	1,125
Restricted cash - replacement reserve	(9,193)	3,323
Acquisition of other real estate		(11,000)
Acquisition deposit		(15,000)
Renovations and additions to hotel properties	(72,989)	(65,836)
Payment for interest rate derivative	(13)
Net cash used in investing activities	(81,065)	(88,441)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from common stock offerings		264,192
Payment of common stock offering costs		(569)
Proceeds from credit facility	38,000	10,750
Payments on notes payable and credit facility	(148,635)	(22,403)
Payments for costs related to extinguishment of notes payable	(2)
Payments of deferred financing costs	(4,131)
Dividends paid	(52,079)	(22,910)
Distributions to non-controlling interests	(3,591)	(2,116)
Net cash (used in) provided by financing activities	(170,438)	226,944
Net (decrease) increase in cash and cash equivalents	(123,336)	256,339
Cash and cash equivalents, beginning of period	222,096	104,363
Cash and cash equivalents, end of period	98,760	360,702
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest	31,999	34,187
Cash (refunds received) paid for income tax, net	(207)	106
NONCASH INVESTING ACTIVITY
Accounts payable related to renovations and additions to hotel properties	12,046	7,259
Amortization of deferred stock compensation - construction activities	304	234
NONCASH FINANCING ACTIVITY
Issuance of common stock dividends	37,349
Dividends payable	$ 12,735	$ 12,370

Organization and Description of

Organization and Description of Business	6 Months Ended
	Jun. 30, 2015
Organization and Description of Business
Organization and Description of Business	1. Organization and Description of Business Sunstone Hotel Investors, Inc. (the “Company”) was incorporated in Maryland on June 28, 2004 in anticipation of an initial public offering of common stock, which was consummated on October 26, 2004. The Company, through its 100% controlling interest in Sunstone Hotel Partnership, LLC (the “Operating Partnership”), of which the Company is the sole managing member, and the subsidiaries of the Operating Partnership, including Sunstone Hotel TRS Lessee, Inc. (the “TRS Lessee”) and its subsidiaries, is currently engaged in acquiring, owning, asset managing and renovating hotel properties. The Company may also sell certain hotel properties from time to time. The Company operates as a real estate investment trust (“REIT”) for federal income tax purposes. As a REIT, certain tax laws limit the amount of “non-qualifying” income the Company can earn, including income derived directly from the operation of hotels. As a result, the Company leases all of its hotels to its TRS Lessee, which in turn enters into long-term management agreements with third parties to manage the operations of the Company’s hotels. As of June 30 , 2015, the Company had interests in 30 hotels (the “30 hotels”) held for investment, and the Company’s third-party managers included the following: Number of Hotels Subsidiaries of Marriott International, Inc. or Marriott Hotel Services, Inc. (collectively, “Marriott”) Interstate Hotels & Resorts, Inc. Highgate Hotels L.P. and an affiliate Crestline Hotels & Resorts Hilton Worldwide Hyatt Corporation Davidson Hotels & Resorts Dimension Development Company Fairmont Hotels & Resorts (U.S.) Total hotels held for investment In addition, as of June 30 , 2015, the Company owned BuyEfficient, LLC (“BuyEfficient”), an electronic purchasing platform that allows members to procure food, operating supplies, furniture, fixtures and equipment.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2015
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements as of June 30 , 2015 and December 31, 2014, and for the three and six months ended June 30 , 2015 and 2014, include the accounts of the Company, the Operating Partnership, the TRS Lessee and their subsidiaries. All significant intercompany balances and transactions have been eliminated. The Company consolidates subsidiaries when it has the ability to direct the activities that most significantly impact the economic performance of the entity. The Company also evaluates its subsidiaries to determine if they should be considered variable interest entities (“VIEs”). Typically, the entity that has the power to direct the activities that most significantly impact economic performance would consolidate the VIE. The Company considers an entity a VIE if equity investors own an interest therein that does not have the characteristics of a controlling financial interest or if such investors do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. In accordance with the Consolidation Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), the Company reviewed its subsidiaries to determine if (i) they should be considered VIEs, and (ii) whether the Company should change its consolidation determination based on changes in the characteristics of these entities. Based on its review, the Company determined that all of its subsidiaries were properly consolidated as of June 30 , 2015 and December 31, 2014, and for the three and six months ended June 30 , 2015 and 2014. Non-controlling interests at both June 30 , 2015 and December 31, 2014 represent the outside equity interests in various consolidated affiliates of the Company. The accompanying interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and in conformity with the rules and regulations of the Securities and Exchange Commission. In the Company’s opinion, the interim financial statements presented herein reflect all adjustments, consisting solely of normal and recurring adjustments, which are necessary to fairly present the interim financial statements. These financial statements should be read in conjunction with the financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014, filed with the Securities and Exchange Commission on February 19, 2015. The Company has evaluated subsequent events through the date of issuance of these financial statements. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Fair Value of Financial Instruments As of June 30 , 2015 and December 31, 2014, the carrying amount of certain financial instruments, including cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses were representative of their fair values due to the short-term maturity of these instruments. The Company follows the requirements of the Fair Value Measurement and Disclosure Topic of the FASB ASC, which establishes a framework for measuring fair value and disclosing fair value measurements by establishing a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1 Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the asset or the liability; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 Unobservable inputs reflecting the Company’s own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available. As discussed in Note 5 , the Company held two interest rate cap agreements a t June 30 , 2015 and December 31, 2014 to manage, or hedge, interest rate risks related to its floating rate debt. The Company records interest rate protection agreements on the balance sheet at their fair value. Changes in the fair value of derivatives are recorded each period in the consolidated statements of operations and comprehensive income as they are not designated as hedges. In accordance with the Fair Value Measurement and Disclosure Topic of the FASB ASC, the Company estimates the fair value of its interest rate protection agreements based on quotes obtained from the counterparties, which are based upon the consideration that would be required to terminate the agreements. Using Level 2 measurements, the Company determined that the total values of its interest rate cap agreements were de minimis at both June 30 , 2015 and December 31, 2014. The interest rate cap agreements are included in other assets, net on the accompanying consolidated balance sheets. On an annual basis and periodically when indicators of impairment exist, the Company analyzes the carrying values of its hotel properties and other assets using Level 3 measurements, including a discounted cash flow analysis to estimate the fair value of its hotel properties and other assets taking into account each property’s expected cash flow from operations, holding period and estimated proceeds from the disposition of the property. The factors addressed in determining estimated proceeds from disposition include anticipated operating cash flow in the year of disposition and terminal capitalization rate. The Company did not identify any properties or other assets with indicators of impairment during either the three or six months ended June 30 , 2015 and 2014 . On an annual basis and periodically when indicators of impairment exist, the Company also analyzes the carrying value of its goodwill using Level 3 measurements, including a discounted cash flow analysis to estimate the fair value of its reporting units. The Company did not identify any properties or other assets with indicators of goodwill impairment during either the three or six months ended June 30 , 2015 and 2014. As of June 30 , 2015 and December 31, 2014, 69.4% and 71.6% , respectively, of the Company’s outstanding debt had fixed interest rates. The Company’s carrying value of its debt totaled $1.3 billion and $ 1.4 billion as of June 30 , 2015 and December 31, 2014 , respectively . Using Level 3 measurements, including the Company’s weighted average cost of debt of 4.5% , the Company estimates that the fair market value of its debt totaled $1.3 billion and $1.4 billion as of June 30 , 2015 and December 31, 2014 , respectively . The following table presents the Company’s assets measured at fair value on a recurring and non-recurring basis at June 30, 2015 and December 31, 2014 (in thousands): Fair Value Measurements at Reporting Date Total Level 1 Level 2 Level 3 June 30, 2015 (unaudited): Interest rate cap derivative agreements $ — $ — $ — $ — Life insurance policy (1) — — Total assets at June 30, 2015 $ $ — $ $ — December 31, 2014: Interest rate cap derivative agreements $ — $ — $ — $ — Life insurance policy (1) — — Total assets at December 31, 2014 $ $ — $ $ — (1) Includes the split life insurance policy for one of the Company’s former associates, which the Company values using Level 2 measurements. These amounts are included in other assets, net on the accompanying consolidated balance sheets, and will be used to reimburse the Company for payments made to the former associate from the related retirement benefit agreement, which is included in accrued payroll and employee benefits on the accompanying consolidated balance sheets. The following table presents the Company’s liabilities measured at fair value on a recurring and non-recurring basis at June 30, 2015 and December 31, 2014 (in thousands): Fair Value Measurements at Reporting Date Total Level 1 Level 2 Level 3 June 30, 2015 (unaudited): Retirement benefit agreement (1) $ $ — $ $ — December 31, 2014: Retirement benefit agreement (1) $ $ — $ $ — (1) Includes the retirement benefit agreement for one of the Company’s former associates, which the Company values using Level 2 measurements. The agreement calls for the balance of the retirement benefit to be paid out to the former associate in 10 annual installments, beginning in 2011. As such, the Company has paid the former associate a total of $1.0 million through June 30, 2015, which was reimbursed to the Company using funds from the related split life insurance policy noted above. These amounts are included in accrued payroll and employee benefits on the accompanying consolidated balance sheets. Accounts Receivable Accounts receivable primarily represents receivables from hotel guests who occupy hotel rooms and utilize hotel services. Accounts receivable also includes, among other things, receivables from customers who utilize purchase volume rebates through BuyEfficient, as well as tenants who lease space in the Company’s hotels. The Company maintains an allowance for doubtful accounts sufficient to cover potential credit losses. The Company’s accounts receivable includes an allowance for doubtful accounts of $0.3 million and $0.2 million at June 30 , 2015 and December 31, 2014 , respectively . Acquisitions of Hotel Properties and Other Entities Accounting for the acquisition of a hotel property or other entity as a purchase transaction requires an allocation of the purchase price to the assets acquired and the liabilities assumed in the transaction at their respective estimated fair values. The most difficult estimations of individual fair values are those involving long-lived assets, such as property, equipment, intangible assets and any capital lease obligations that are assumed as part of the acquisition of a leasehold interest. During 2014, the Company used all available information to make these fair value determinations, and engaged an independent valuation specialist to assist in the fair value determination of the long-lived assets acquired and the liabilities assumed in the Company’s purchase of the Wailea Beach Marriott Resort & Spa . Due to the inherent subjectivity in determining the estimated fair value of long-lived assets, the Company believes that the recording of acquired assets and liabilities is a critical accounting policy. Assets Held for Sale The Company considers a hotel or other asset held for sale if it is probable that the sale will be completed within twelve months, among other requirements. A sale is determined to be probable once the buyer completes its due diligence of the asset, there is an executed purchase and sale agreement between the Company and the buyer, the buyer waives any closing contingencies, and the Company has received a substantial non-refundable deposit. Depreciation ceases when a property is held for sale. Should an impairment loss be required for assets held for sale, the related assets are adjusted to their estimated fair values, less costs to sell. If the sale of a hotel or other asset represents a strategic shift that will have a major effect on the Company’s operations and financial results, the hotel or other asset is included in discontinued operations, and operating results are removed from income from continuing operations and reported as discontinued operations. The operating results for any such assets for any prior periods presented must also be reclassified as discontinued operations. As of both June 30 , 2015 and December 31, 2014, the Company had no hotels or other assets held for sale. Deferred Financing Fees Deferred financing fees consist of loan fees and other financing costs related to the Company’s outstanding indebtedness and credit facility commitments, and are amortized to interest expense over the terms of the related debt or commitment. If a loan is refinanced or paid before its maturity, any u namortized deferred financing costs will generally be expensed unless specific rules are met that would allow for the carryover of such costs to the refinanced debt. Earnings Per Share The Company applies the two-class method when computing its earnings per share as required by the Earnings Per Share Topic of the FASB ASC, which requires the net income per share for each class of stock (common stock and convertible preferred stock) to be calculated assuming all of the Company’s net income is distributed as dividends to each class of stock based on their contractual rights. To the extent the Company has undistributed earnings in any calendar quarter, the Company will follow the two-class method of computing earnings per share. The Company follows the requirements of the Earnings Per Share Topic of the FASB ASC, which states that unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method. For both the three months ended June 30 , 2015 and 2014, distributed earnings representing nonforfeitable dividends of $0.1 million were allocated to the participating securities. For the six months ended June 30, 2015 and 2014, distributed earnings representing nonforfeitable dividends of $0.1 million and $0.2 million, respectively, were allocated to the participating securities. F or the three months ended June 30 , 2015 and 2014, undistributed earnings representing nonforfeitable dividends of $0.1 million and $0.2 million, respectively, were allocated to the participating securities. For both the six months ended June 30, 2015 and 2014 , undistributed earnings representing nonforfeitable dividends of $0.1 million were allocated to the participating securities. In accordance with the Earnings Per Share Topic of the FASB ASC, basic earnings (loss ) attributable to common stockholders per common share is computed based on the weighted average number of shares of common stock outstanding during each period. Diluted earnings (loss ) attributable to common stockholders per common share is computed based on the weighted average number of shares of common stock outstanding during each period, plus potential common shares considered outstanding during the period, as long as the inclusion of such awards is not anti-dilutive. Potential common shares consist of unvested restricted stock awards and the incremental common shares issuable upon the exercise of stock options, using the more dilutive of either the two-class method or the treasury stock method. The following table sets forth the computation of basic and diluted earnings per common share (in thousands, except per share data): Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 (unaudited) (unaudited) (unaudited) (unaudited) Numerator: Net income $ $ $ $ Income from consolidated joint ventures attributable to non-controlling interests Preferred stock dividends Dividends paid on unvested restricted stock compensation Undistributed income allocated to unvested restricted stock compensation Numerator for basic and diluted income attributable to common stockholders $ $ $ $ Denominator: Weighted average basic and diluted common shares outstanding Basic and diluted income attributable to common stockholders per common share $ $ $ $ The Company’s unvested restricted shares associated with its long-term incentive plan and shares associated with common stock options have been excluded from the above calculation of earnings per share for the three and six months ended June 30 , 2015 and 2014, as their inclusion would have been anti-dilutive. Goodwill The Company follows the requirements of the Intangibles — Goodwill and Other Topic of the FASB ASC, which states that goodwill and intangible assets deemed to have indefinite lives are subject to annual impairment tests. As a result, the carrying value of goodwill allocated to hotel properties and other assets is reviewed at least annually for impairment. In addition, when facts and circumstances suggest that the Company’s goodwill may be impaired, an interim evaluation of goodwill is prepared. Such review entails comparing the carrying value of the individual hotel property or other asset (the reporting unit) including the allocated goodwill to the fair value determined for that reporting unit (see Fair Value of Financial Instruments for detail on the Company’s valuation methodology). If the aggregate carrying value of the reporting unit exceeds the fair value, the goodwill of the reporting unit is impaired to the extent of the difference between the fair value and the aggregate carrying value, not to exceed the carrying amount of the allocated goodwill. The Company’s annual impairment evaluation is performed each year as of December 31. Non-Controlling Interests The Company’s financial statements include entities in which the Company has a controlling financial interest. Non-controlling interest is the portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. Such non-controlling interests are reported on the consolidated balance sheets within equity, separately from the Company’s equity. On the consolidated statements of operations and comprehensive income , revenues, expenses and net income or loss from less-than-wholly-owned subsidiaries are reported at the consolidated amounts, including both the amounts attributable to the Company and non-controlling interests. Income or loss is allocated to non-controlling interests based on their weighted average ownership percentage for the applicable period. The consolidated statements of equity include beginning balances, activity for the period and ending balances for each component of shareholders’ equity, non-controlling interests and total equity. At both June 30 , 2015 and December 31, 2014, the non-controlling interests reported in the Company’s financial statements include Hilton Worldwide’s 25.0% ownership in the Hilton San Diego Bayfront, as well as investors that own a $0.1 million preferred equity interest in a subsidiary captive REIT that owns the Doubletree Guest Suites Times Square. Segment Reporting The Company reports its consolidated financial statements in accordance with the Segment Reporting Topic of the FASB ASC. Currently, the Company operates in one segment, operations held for investment.

Investment in Hotel Properties

Investment in Hotel Properties	6 Months Ended
	Jun. 30, 2015
Investment in Hotel Properties
Investment in Hotel Properties	3. Investment in Hotel Properties Investment in hotel properties, net consisted of the following (in thousands): June 30, December 31, 2015 2014 (unaudited) Land $ $ Buildings and improvements Furniture, fixtures and equipment Intangibles Franchise fees Construction in process Investment in hotel properties, gross Accumulated depreciation and amortization Investment in hotel properties, net $ $ In June 2014, the Company acquired the land underlying the Fairmont Newport Beach, and in July 2014, the Company acquired the Wailea Beach Marriott Resort & Spa. Acquired properties are included in the Company’s results of operations and comprehensive income from the date of acquisition. The following unaudited pro forma results of operations reflect the Company’s results as if the acquisitions of the Wailea Beach Marriott Resort & Spa and the land underlying the Fairmont Newport Beach had occurred on January 1, 2014. In the Company’s opinion, all significant adjustments necessary to reflect the effects of the acquisitions have been made (in thousands, except per share data): Three Months Ended Six Months Ended June 30, 2014 June 30, 2014 (unaudited) (unaudited) Revenues $ $ Income from continuing operations attributable to common stockholders $ $ Income from continuing operations per diluted share attributable to common stockholders $ $

Discontinued Operations

Discontinued Operations	6 Months Ended
	Jun. 30, 2015
Discontinued Operations
Discontinued Operations	4. Discontinued Operations In January 2013, the Company sold a four -hotel, 1,222 -room portfolio (the “Rochester Hotels”) and a commercial laundry facility (together with the Rochester Hotels, the “Rochester Portfolio”) in Rochester, Minnesota, to an unaffiliated third party. In May 2014, the Company was released from a $7.0 million pension plan liability related to the Rochester Portfolio, causing the Company to recognize additional gain on the sale of the Rochester Portfolio of $7.0 million, which is included in discontinued operations for the three and six months ended June 30, 2014. In addition, during the second quarter of 2014, the Company accrued $1.8 million in accordance with the Contingencies Topic of the FASB ASC related to potential future costs for certain capital expenditures at one of the hotels in the Rochester Portfolio, which is also included in discontinued operations for the three and six months ended June 30, 2014. During the first quarter of 2015 , the Company paid all remaining amounts due related to this contingency.

Interest Rate Derivative Agreem

Interest Rate Derivative Agreements	6 Months Ended
	Jun. 30, 2015
Interest Rate Derivative Agreements
Interest Rate Derivative Agreements	5. Interest Rate Derivative Agreements At June 30, 2015 and December 31, 2014, the Company held two interest rate cap agreements to mitigate its exposure to the interest rate risks related to its floating rate debt. The first interest rate cap agreement is on the Hilton San Diego Bayfront mortgage, which mortgage currently bears an interest rate of one-month LIBOR plus 225 basis points. In April 2015, the Company and its joint venture partner entered into a new interest rate cap agreement on the Hilton San Diego Bayfront mortgage which caps the interest rate at 4.25% and matures in May 2017. The previous Hilton San Diego Bayfront cap agreement capped the LIBOR rate at 3.75% until April 2015. The notional amount of the related debt capped totaled $113.6 million and $117.0 million at June 30, 2015 and December 31, 2014, respectively. The second interest rate cap agreement is on the Doubletree Guest Suites Times Square mortgage, which mortgage currently bears an interest rate of one-month LIBOR plus 325 basis points. The Doubletree Guest Suites Times Square cap agreement caps the LIBOR rate at 4.0% until October 2015. The notional amount of the related debt capped totaled $176.2 million and $177.4 million at June 30, 2015 and December 31, 2014, respectively. None of the interest rate derivative agreements qualifies for effective hedge accounting treatment. Accordingly, changes in the fair value of the Company’s interest rate derivative agreements are reflected as increases or decreases in interest expense on the Company’s statements of operations and comprehensive income. During both the three and six months ended June 30, 2015 and 2014, changes in the fair value of the Company’s interest rate cap agreements resulted in nominal losses reflected as increases in interest expense during the respective periods. As of both June 30, 2015 and December 31, 2014, the fair values of the interest rate cap agreements were de minimis. The interest rate cap agreements are included in other assets, net on the Company’s consolidated balance sheets. During the three and six months ended June 30, 2014, the Company also had an interest rate swap agreement on the JW Marriott New Orleans mortgage, which swap agreement was terminated in December 2014. Changes in the fair value of the interest rate swap agreement resulted in net gains of $0.1 million and $0.2 million for the three and six months ended June 30, 2014, respectively, which are reflected as decreases in interest expense for the three and six months ended June 30, 2014.

Other Assets

Other Assets	6 Months Ended
	Jun. 30, 2015
Other Assets
Other Assets	6. Other Assets Other assets, net consisted of the following (in thousands): June 30, December 31, 2015 2014 (unaudited) Property and equipment, net $ $ Land held for development Intangibles, net Deferred expense on straightlined third-party tenant leases Other receivables Other Total other assets $ $ Property and equipment , net consisted of the following (in thousands): June 30, December 31, 2015 2014 (unaudited) Cost basis $ $ Accumulated depreciation Property and equipment, net $ $ The Company’s other assets, net as of June 30, 2015 and December 31, 2014, include BuyEfficient’s intangible assets totaling $6.4 million and $6.7 million, respectively, net of accumulated amortization related to certain trademarks, customer and supplier relationships and intellectual property related to internally developed software. These intangibles are amortized using the straight-line method over their useful lives ranging between seven and 20 years. Accumulated amortization totaled $2.7 million and $2.4 million at June 30, 2015 and December 31, 2014, respectively. Amortization expense totaled $0.1 million for both the three months ended June 30, 2015 and 2014, and $0.3 million for both the six months ended June 30, 2015 and 2014. Upon sale of the Rochester Hotels in January 2013, t he Company retained a $25.0 million preferred equity investment (the “Preferred Equity Investment”) in the Rochester Hotels that yields an 11% dividend, resulting in a deferred gain on the sale of $25.0 million. The $25.0 million gain will be deferred until the Preferred Equity Investment is redeemed or sold (see Note 12). The Preferred Equity Investment is recorded at face value on the Company’s consolidated balance sheets net of the deferred gain, resulting in a net book value of zero on the Company’s consolidated balance sheets as of both June 30, 2015 and December 31, 2014. During both the three and six months ended June 30, 2015 and 2014, the Company recognized $0.7 million and $1.4 million, respectively, in dividends on the Preferred Equity Investment.

Notes Payable

Notes Payable	6 Months Ended
	Jun. 30, 2015
Notes Payable
Notes Payable	7. Notes Payable Notes payable consisted of the following (in thousands): June 30, December 31, 2015 2014 (unaudited) Notes payable requiring payments of interest and principal, with fixed rates ranging from 4.12% to 5.95%; maturing at dates ranging from January 2016 through January 2025. The notes are collateralized by first deeds of trust on 10 hotel properties at June 30, 2015, and 14 hotel properties at December 31, 2014. $ $ Note payable requiring payments of interest and principal, bearing a blended rate of one -month LIBOR plus 225 basis points; maturing in August 2019. The note is collateralized by a first deed of trust on one hotel property. Note payable requiring payments of interest only through October 2013, and interest and principal thereafter, with a blended interest rate of one -month LIBOR plus 325 basis points; maturing in October 2018. The note is collateralized by a first deed of trust on one hotel property. Total notes payable Less: current portion Notes payable, less current portion $ $ In April 2015, the Company entered into a $400.0 million senior unsecured credit facility, which replaced its prior $150.0 million senior unsecured credit facility. The credit facility’s interest rate is based on a pricing grid with a range of 155 to 230 basis points over LIBOR , depending on the Company’s leverage ratios, and represents a decline in pricing from the prior credit facility of approximately 30 to 60 basis points. The term of the credit facility is four years, expiring in April 2019, with an option to extend for an additional one year subject to the satisfaction of certain customary conditions. The credit facility also includes an accordion option, which allows the Company to request additional lender commitments for up to a total capacity of $800.0 million. During the second quarter of 2015, the Company wrote off $0.5 million in deferred financing fees related to its prior credit facility. As of June 30, 2015, the Company has no outstanding amounts due under its credit facility. In May 2015, the Company repaid $99.1 million of debt secured by four of its hotels: the Marriott Houston, the Marriott Park City, the Marriott Philadelphia and the Marriott Tysons Corner. Following the repayment of the four mortgages, the Company has 18 unencumbered hotels. During both the three and six months ended June 30, 2015, the Company paid $ 4.1 million in deferred financing fees related to its new credit facility, as well as its new loans entered into in December 2014 secured by the Embassy Suites La Jolla and the JW Marriott New Orleans. Total interest incurred and expensed on the notes payable was as follows (in thousands): Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 (unaudited) (unaudited) (unaudited) (unaudited) Interest expense on debt and capital lease obligations $ $ $ $ Loss (gain) on derivatives, net Amortization and write-off of deferred financing fees Total interest expense $ $ $ $

Other Current Liabilities and O

Other Current Liabilities and Other Liabilities	6 Months Ended
	Jun. 30, 2015
Other Current Liabilities and Other Liabilities
Other Current Liabilities and Other Liabilities	8 . Other Current Liabilities and Other Liabilities Other current liabilities consisted of the following (in thousands): June 30, December 31, 2015 2014 (unaudited) Property, sales and use taxes payable $ $ Income tax payable Accrued interest Advance deposits Management fees payable Other Total other current liabilities $ $ Other liabilities consisted of the following (in thousands): June 30, December 31, 2015 2014 (unaudited) Deferred gain on sale of asset $ $ Accrued income tax Deferred revenue Deferred rent Deferred incentive management fees Other Total other liabilities $ $

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2015
Stockholders' Equity
Stockholders' Equity	9 . Stockholders’ Equity Series D Cumulative Redeemable Preferred Stock The Company’s 4,600,000 shares of 8.0% Series D Cumulative Redeemable Preferred Stock (“Series D preferred stock”) have a liquidation preference of $25.00 per share. On or after April 6, 2016, the Series D preferred stock will be redeemable at the Company’s option, in whole or in part, at any time or from time to time, for cash at a redemption price of $25.00 per share, plus accrued and unpaid dividends up to, but not including, the redemption date. Common Stock In February 2014, the Company entered into separate Equity Distribution Agreements (the “Agreements”) with Wells Fargo Securities, LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated (the “Managers”). Under the terms of the Agreements, the Company may issue and sell from time to time through or to the Managers, as sales agents and/or principals, shares of the Company’s common stock having an aggregate offering amount of up to $150.0 million. The Company did not issue any shares of its common stock in connection with the Agreements during either the three or six months ended June 30 , 2015. As of June 30 , 2015, the Company has $128.4 million available for sale under the Agreements.

Long-Term Incentive Plan

Long-Term Incentive Plan	6 Months Ended
	Jun. 30, 2015
Long-Term Incentive Plan
Long-Term Incentive Plan	10. Long-Term Incentive Plan Stock Grants Restricted shares granted pursuant to the Company’s Long-Term Incentive Plan (“LTIP”) generally vest over periods from three to five years from the date of grant. Compensation expense related to awards of restricted shares and performance shares are measured at fair value on the date of grant and amortized over the relevant requisite service period or derived service period. The Company’s compensation expense and forfeitures related to restricted shares and performance awards for the three and six months ended June 30, 2015 and 2014 were as follows (in thousands): Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 (unaudited) (unaudited) (unaudited) (unaudited) Compensation expense, including forfeitures $ $ $ $ The Company’s total compensation expense differs from the vesting of restricted common stock amount presented in the Company’s consolidated statement of equity due to the Company withholding and using a portion of its restricted shares granted pursuant to its LTIP for purposes of remitting statutory minimum withholding and payroll taxes in connection with the release of restricted common shares to plan participants (“net-settle”). In addition, the Company capitalizes compensation costs related to all restricted shares granted to certain of those employees who work on the design and construction of its hotels. The Company’s total compensation expense in relation to its vesting of restricted common stock presented in the Company’s consolidated statement of equity for the six months ended June 30, 2015 is as follows (in thousands): Six Months Ended June 30, 2015 (unaudited) Compensation expense, including forfeitures $ Net-settle adjustment Amortization related to shares issued to design and construction employees Vesting of restricted stock presented on statement of equity $ In January 2015, the Company recognized a total of $2.5 million in stock compensation and amortization expense related to the departure of its former Chief Executive Officer, including $1.6 million in deferred stock amortization. Stock Grants In April 2008, the Compensation Committee of the Company’s board of directors approved a grant of 200,000 non-qualified stock options (the “Options”) to one of the Company’s former associates. The Options fully vested in April 2009, and will expire in April 2018. The exercise price of the options is $17.71 per share.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies
Commitments and Contingencies	11. Commitments and Contingencies Management Agreements Management agreements with the Company’s third-party hotel managers require the Company to pay between 1.5% and 3.5% of total revenue of the managed hotels to the third-party managers each month as a basic management fee. In addition to basic management fees, provided that certain operating thresholds are met, the Company may also be required to pay incentive management fees to certain of its third-party managers. Total basic and incentive management fees incurred by the Company during the three and six months ended June 30, 2015 and 2014 were included in property general and administrative expense on the Company’s consolidated statements of operations and comprehensive income as follows (in thousands): Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 (unaudited) (unaudited) (unaudited) (unaudited) Basic management fees $ $ $ $ Incentive management fees Total basic and incentive management fees $ $ $ $ License and Franchise Agreements The Company has entered into license and franchise agreements related to certain of its hotel properties. The license and franchise agreements require the Company to, among other things, pay monthly fees that are calculated based on specified percentages of certain revenues. The license and franchise agreements generally contain specific standards for, and restrictions and limitations on, the operation and maintenance of the hotels which are established by the franchisors to maintain uniformity in the system created by each such franchisor. Such standards generally regulate the appearance of the hotel, quality and type of goods and services offered, signage and protection of trademarks. Compliance with such standards may from time to time require the Company to make significant expenditures for capital improvements. Total license and franchise costs incurred by the Company during the three and six months ended June 30, 2015 and 2014 were included in the Company’s consolidated statements of operations and comprehensive income as follows (in thousands): Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 (unaudited) (unaudited) (unaudited) (unaudited) Franchise assessments (1) $ $ $ $ Franchise royalties Total franchise costs $ $ $ $ (1) Includes advertising, reservation and priority club assessments. Renovation and Construction Commitments At June 30, 2015, the Company had various contracts outstanding with third parties in connection with the renovation of certain of its hotel properties aimed at maintaining the appearance and quality of its hotels. The remaining commitments under these contracts at June 30, 2015 totaled $75.7 million. Capital Leases The Hyatt Chicago Magnificent Mile is subject to a building lease which expires in December 2097. Upon acquisition of the hotel in June 2012, the Company evaluated the terms of the lease agreement and determined the lease to be a capital lease pursuant to the Leases Topic of the FASB ASC. The Company leases certain printers and copiers which leases have been determined to be capital leases pursuant to the Leases Topic of the FASB ASC. All of the leases expired in December 2014. Assets under capital lease were included in investment in hotel properties, net on the Company’s consolidated balance sheets as follows (in thousands): June 30, December 31, 2015 2014 (unaudited) Buildings and improvements $ $ Furniture, fixtures and equipment — Capital lease assets, gross Accumulated depreciation Capital lease assets, net $ $ Future minimum lease payments under capital leases together with the present value of the net minimum lease payments as of June 30, 2015 are as follows (in thousands): 2015 $ 2016 2017 2018 2019 Thereafter Total minimum lease payments (1) Less: Amount representing interest (2) Present value of net minimum lease payments (3) $ (1) Minimum lease payments do not include percentage rent which may be paid under the Hyatt Chicago Magnificent Mile building lease on the basis of 4.0% of the hotel’s gross room revenues over a certain threshold. For the three and six months ended June 30, 2015, $19,000 in percentage was due under the Hyatt Chicago Magnificent Mile’s building lease. No percentage rent was due for either the three or six months ended June 30, 2014. (2) Interest includes the amount necessary to reduce net minimum lease payments to present value calculated at the Company’s incremental borrowing rate at lease inception. (3) The present value of net minimum lease payments are presented on the Company’s consolidated balance sheet as of June 30, 2015 as a current obligation of $1,000 , which is included in accounts payable and accrued expenses, and as a long term obligation of $ 15.6 million, which is included in capital lease obligations, less current portion. Ground, Building and Air Leases Total rent expense incurred pursuant to ground, building and air lease agreements for the three and six months ended June 30, 2015 and 2014 was included in property tax, ground lease and insurance on the Company’s consolidated statements of operations and comprehensive income as follows (in thousands): Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 (unaudited) (unaudited) (unaudited) (unaudited) Minimum rent, including straightline adjustments $ $ Percentage rent (1) Total $ $ $ $ (1) Several of the Company’s hotels pay percentage rent, which is calculated on operating revenues above certain thresholds. Prior to the Company’s June 2014 acquisition of the land underlying the Fairmont Newport Beach, the land was leased to the Company by a third party. Ground lease expense for the land underlying the Fairmont Newport Beach totaled $0.1 million and $0.3 million for the three and six months ended June 30, 2014, respectively. Rent expense incurred pursuant to leases on the corporate facility, which is included in corporate overhead expense, totaled $0.1 million for both the three months ended June 30, 2015 and 2014, and $0.2 million for both the six months ended June 30, 2015 and 2014. Concentration of Risk The concentration of the Company’s hotels in California, New York, Illinois, Massachusetts and the greater Washington DC area exposes the Company’s business to economic conditions, competition and real and personal property tax rates unique to these locales. As of June 30, 2015, 21 of the Company’s 30 hotels were concentrated in California, New York, Illinois, Massachusetts and the greater Washington DC area as follows: Greater Washington DC California New York Illinois Massachusetts Area (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Number of hotels Percentage of total rooms % % % % % Percentage of total consolidated revenue for the six months ended June 30, 2015 % % % % % Other The Company has provided customary unsecured environmental indemnities to certain lenders. The Company has performed due diligence on the potential environmental risks, including obtaining an independent environmental review from outside environmental consultants. These indemnities obligate the Company to reimburse the indemnified parties for damages related to certain environmental matters. There is no term or damage limitation on these indemnities; however, if an environmental matter arises, the Company could have recourse against other previous owners or a claim against its environmental insurance policies. At June 30, 2015, the Company had $0.6 million of outstanding irrevocable letters of credit to guaranty the Company’s financial obligations related to workers’ compensation insurance programs from prior policy years. The beneficiaries of these letters of credit may draw upon these letters of credit in the event of a contractual default by the Company relating to each respective obligation. No draws have been made through June 30, 2015.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2015
Subsequent Events
Subsequent Events	12. Subsequent Events On July 24, 2015, the Company sold its $25.0 million Preferred Equity Investment and settled its $3.7 million working capital loan provided to the buyer of the Rochester Portfolio for an aggregate payment of $16.0 million, plus accrued interest. Both the Preferred Equity Investment and the working capital loan were carried net of deferred gains, resulting in zero balances on the Company’s consolidated balance sheets as of both June 30, 2015 and December 31, 2014. A s such , the Company will recognize a $16.0 million gain on the sale of the Rochester Portfolio in discontinued operations during the third quarter of 2015 in accordance with the Real Estate Sales Subtopic under the Property, Plant and Equipment Topic of the FASB ASC, as these additional sales proceeds could not be recognized until realized .

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2015
Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements as of June 30 , 2015 and December 31, 2014, and for the three and six months ended June 30 , 2015 and 2014, include the accounts of the Company, the Operating Partnership, the TRS Lessee and their subsidiaries. All significant intercompany balances and transactions have been eliminated. The Company consolidates subsidiaries when it has the ability to direct the activities that most significantly impact the economic performance of the entity. The Company also evaluates its subsidiaries to determine if they should be considered variable interest entities (“VIEs”). Typically, the entity that has the power to direct the activities that most significantly impact economic performance would consolidate the VIE. The Company considers an entity a VIE if equity investors own an interest therein that does not have the characteristics of a controlling financial interest or if such investors do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. In accordance with the Consolidation Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), the Company reviewed its subsidiaries to determine if (i) they should be considered VIEs, and (ii) whether the Company should change its consolidation determination based on changes in the characteristics of these entities. Based on its review, the Company determined that all of its subsidiaries were properly consolidated as of June 30 , 2015 and December 31, 2014, and for the three and six months ended June 30 , 2015 and 2014. Non-controlling interests at both June 30 , 2015 and December 31, 2014 represent the outside equity interests in various consolidated affiliates of the Company. The accompanying interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and in conformity with the rules and regulations of the Securities and Exchange Commission. In the Company’s opinion, the interim financial statements presented herein reflect all adjustments, consisting solely of normal and recurring adjustments, which are necessary to fairly present the interim financial statements. These financial statements should be read in conjunction with the financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014, filed with the Securities and Exchange Commission on February 19, 2015. The Company has evaluated subsequent events through the date of issuance of these financial statements.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates.
Fair Value of Financial Instruments	Fair Value of Financial Instruments As of June 30 , 2015 and December 31, 2014, the carrying amount of certain financial instruments, including cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses were representative of their fair values due to the short-term maturity of these instruments. The Company follows the requirements of the Fair Value Measurement and Disclosure Topic of the FASB ASC, which establishes a framework for measuring fair value and disclosing fair value measurements by establishing a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1 Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the asset or the liability; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 Unobservable inputs reflecting the Company’s own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available. As discussed in Note 5 , the Company held two interest rate cap agreements a t June 30 , 2015 and December 31, 2014 to manage, or hedge, interest rate risks related to its floating rate debt. The Company records interest rate protection agreements on the balance sheet at their fair value. Changes in the fair value of derivatives are recorded each period in the consolidated statements of operations and comprehensive income as they are not designated as hedges. In accordance with the Fair Value Measurement and Disclosure Topic of the FASB ASC, the Company estimates the fair value of its interest rate protection agreements based on quotes obtained from the counterparties, which are based upon the consideration that would be required to terminate the agreements. Using Level 2 measurements, the Company determined that the total values of its interest rate cap agreements were de minimis at both June 30 , 2015 and December 31, 2014. The interest rate cap agreements are included in other assets, net on the accompanying consolidated balance sheets. On an annual basis and periodically when indicators of impairment exist, the Company analyzes the carrying values of its hotel properties and other assets using Level 3 measurements, including a discounted cash flow analysis to estimate the fair value of its hotel properties and other assets taking into account each property’s expected cash flow from operations, holding period and estimated proceeds from the disposition of the property. The factors addressed in determining estimated proceeds from disposition include anticipated operating cash flow in the year of disposition and terminal capitalization rate. The Company did not identify any properties or other assets with indicators of impairment during either the three or six months ended June 30 , 2015 and 2014 . On an annual basis and periodically when indicators of impairment exist, the Company also analyzes the carrying value of its goodwill using Level 3 measurements, including a discounted cash flow analysis to estimate the fair value of its reporting units. The Company did not identify any properties or other assets with indicators of goodwill impairment during either the three or six months ended June 30 , 2015 and 2014. As of June 30 , 2015 and December 31, 2014, 69.4% and 71.6% , respectively, of the Company’s outstanding debt had fixed interest rates. The Company’s carrying value of its debt totaled $1.3 billion and $ 1.4 billion as of June 30 , 2015 and December 31, 2014 , respectively . Using Level 3 measurements, including the Company’s weighted average cost of debt of 4.5% , the Company estimates that the fair market value of its debt totaled $1.3 billion and $1.4 billion as of June 30 , 2015 and December 31, 2014 , respectively . The following table presents the Company’s assets measured at fair value on a recurring and non-recurring basis at June 30, 2015 and December 31, 2014 (in thousands): Fair Value Measurements at Reporting Date Total Level 1 Level 2 Level 3 June 30, 2015 (unaudited): Interest rate cap derivative agreements $ — $ — $ — $ — Life insurance policy (1) — — Total assets at June 30, 2015 $ $ — $ $ — December 31, 2014: Interest rate cap derivative agreements $ — $ — $ — $ — Life insurance policy (1) — — Total assets at December 31, 2014 $ $ — $ $ — (1) Includes the split life insurance policy for one of the Company’s former associates, which the Company values using Level 2 measurements. These amounts are included in other assets, net on the accompanying consolidated balance sheets, and will be used to reimburse the Company for payments made to the former associate from the related retirement benefit agreement, which is included in accrued payroll and employee benefits on the accompanying consolidated balance sheets. The following table presents the Company’s liabilities measured at fair value on a recurring and non-recurring basis at June 30, 2015 and December 31, 2014 (in thousands): Fair Value Measurements at Reporting Date Total Level 1 Level 2 Level 3 June 30, 2015 (unaudited): Retirement benefit agreement (1) $ $ — $ $ — December 31, 2014: Retirement benefit agreement (1) $ $ — $ $ — (1) Includes the retirement benefit agreement for one of the Company’s former associates, which the Company values using Level 2 measurements. The agreement calls for the balance of the retirement benefit to be paid out to the former associate in 10 annual installments, beginning in 2011. As such, the Company has paid the former associate a total of $1.0 million through June 30, 2015, which was reimbursed to the Company using funds from the related split life insurance policy noted above. These amounts are included in accrued payroll and employee benefits on the accompanying consolidated balance sheets.
Accounts Receivable	Accounts Receivable Accounts receivable primarily represents receivables from hotel guests who occupy hotel rooms and utilize hotel services. Accounts receivable also includes, among other things, receivables from customers who utilize purchase volume rebates through BuyEfficient, as well as tenants who lease space in the Company’s hotels. The Company maintains an allowance for doubtful accounts sufficient to cover potential credit losses. The Company’s accounts receivable includes an allowance for doubtful accounts of $0.3 million and $0.2 million at June 30 , 2015 and December 31, 2014 , respectively .
Acquisitions of Hotel Properties and Other Entities	Acquisitions of Hotel Properties and Other Entities Accounting for the acquisition of a hotel property or other entity as a purchase transaction requires an allocation of the purchase price to the assets acquired and the liabilities assumed in the transaction at their respective estimated fair values. The most difficult estimations of individual fair values are those involving long-lived assets, such as property, equipment, intangible assets and any capital lease obligations that are assumed as part of the acquisition of a leasehold interest. During 2014, the Company used all available information to make these fair value determinations, and engaged an independent valuation specialist to assist in the fair value determination of the long-lived assets acquired and the liabilities assumed in the Company’s purchase of the Wailea Beach Marriott Resort & Spa . Due to the inherent subjectivity in determining the estimated fair value of long-lived assets, the Company believes that the recording of acquired assets and liabilities is a critical accounting policy.
Assets Held for Sale	Assets Held for Sale The Company considers a hotel or other asset held for sale if it is probable that the sale will be completed within twelve months, among other requirements. A sale is determined to be probable once the buyer completes its due diligence of the asset, there is an executed purchase and sale agreement between the Company and the buyer, the buyer waives any closing contingencies, and the Company has received a substantial non-refundable deposit. Depreciation ceases when a property is held for sale. Should an impairment loss be required for assets held for sale, the related assets are adjusted to their estimated fair values, less costs to sell. If the sale of a hotel or other asset represents a strategic shift that will have a major effect on the Company’s operations and financial results, the hotel or other asset is included in discontinued operations, and operating results are removed from income from continuing operations and reported as discontinued operations. The operating results for any such assets for any prior periods presented must also be reclassified as discontinued operations. As of both June 30 , 2015 and December 31, 2014, the Company had no hotels or other assets held for sale.
Deferred Financing Fees	Deferred Financing Fees Deferred financing fees consist of loan fees and other financing costs related to the Company’s outstanding indebtedness and credit facility commitments, and are amortized to interest expense over the terms of the related debt or commitment. If a loan is refinanced or paid before its maturity, any u namortized deferred financing costs will generally be expensed unless specific rules are met that would allow for the carryover of such costs to the refinanced debt.
Earnings Per Share	Earnings Per Share The Company applies the two-class method when computing its earnings per share as required by the Earnings Per Share Topic of the FASB ASC, which requires the net income per share for each class of stock (common stock and convertible preferred stock) to be calculated assuming all of the Company’s net income is distributed as dividends to each class of stock based on their contractual rights. To the extent the Company has undistributed earnings in any calendar quarter, the Company will follow the two-class method of computing earnings per share. The Company follows the requirements of the Earnings Per Share Topic of the FASB ASC, which states that unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method. For both the three months ended June 30 , 2015 and 2014, distributed earnings representing nonforfeitable dividends of $0.1 million were allocated to the participating securities. For the six months ended June 30, 2015 and 2014, distributed earnings representing nonforfeitable dividends of $0.1 million and $0.2 million, respectively, were allocated to the participating securities. F or the three months ended June 30 , 2015 and 2014, undistributed earnings representing nonforfeitable dividends of $0.1 million and $0.2 million, respectively, were allocated to the participating securities. For both the six months ended June 30, 2015 and 2014 , undistributed earnings representing nonforfeitable dividends of $0.1 million were allocated to the participating securities. In accordance with the Earnings Per Share Topic of the FASB ASC, basic earnings (loss ) attributable to common stockholders per common share is computed based on the weighted average number of shares of common stock outstanding during each period. Diluted earnings (loss ) attributable to common stockholders per common share is computed based on the weighted average number of shares of common stock outstanding during each period, plus potential common shares considered outstanding during the period, as long as the inclusion of such awards is not anti-dilutive. Potential common shares consist of unvested restricted stock awards and the incremental common shares issuable upon the exercise of stock options, using the more dilutive of either the two-class method or the treasury stock method. The following table sets forth the computation of basic and diluted earnings per common share (in thousands, except per share data): Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 (unaudited) (unaudited) (unaudited) (unaudited) Numerator: Net income $ $ $ $ Income from consolidated joint ventures attributable to non-controlling interests Preferred stock dividends Dividends paid on unvested restricted stock compensation Undistributed income allocated to unvested restricted stock compensation Numerator for basic and diluted income attributable to common stockholders $ $ $ $ Denominator: Weighted average basic and diluted common shares outstanding Basic and diluted income attributable to common stockholders per common share $ $ $ $ The Company’s unvested restricted shares associated with its long-term incentive plan and shares associated with common stock options have been excluded from the above calculation of earnings per share for the three and six months ended June 30 , 2015 and 2014, as their inclusion would have been anti-dilutive.
Goodwill	Goodwill The Company follows the requirements of the Intangibles — Goodwill and Other Topic of the FASB ASC, which states that goodwill and intangible assets deemed to have indefinite lives are subject to annual impairment tests. As a result, the carrying value of goodwill allocated to hotel properties and other assets is reviewed at least annually for impairment. In addition, when facts and circumstances suggest that the Company’s goodwill may be impaired, an interim evaluation of goodwill is prepared. Such review entails comparing the carrying value of the individual hotel property or other asset (the reporting unit) including the allocated goodwill to the fair value determined for that reporting unit (see Fair Value of Financial Instruments for detail on the Company’s valuation methodology). If the aggregate carrying value of the reporting unit exceeds the fair value, the goodwill of the reporting unit is impaired to the extent of the difference between the fair value and the aggregate carrying value, not to exceed the carrying amount of the allocated goodwill. The Company’s annual impairment evaluation is performed each year as of December 31.
Non-Controlling Interests	Non-Controlling Interests The Company’s financial statements include entities in which the Company has a controlling financial interest. Non-controlling interest is the portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. Such non-controlling interests are reported on the consolidated balance sheets within equity, separately from the Company’s equity. On the consolidated statements of operations and comprehensive income , revenues, expenses and net income or loss from less-than-wholly-owned subsidiaries are reported at the consolidated amounts, including both the amounts attributable to the Company and non-controlling interests. Income or loss is allocated to non-controlling interests based on their weighted average ownership percentage for the applicable period. The consolidated statements of equity include beginning balances, activity for the period and ending balances for each component of shareholders’ equity, non-controlling interests and total equity. At both June 30 , 2015 and December 31, 2014, the non-controlling interests reported in the Company’s financial statements include Hilton Worldwide’s 25.0% ownership in the Hilton San Diego Bayfront, as well as investors that own a $0.1 million preferred equity interest in a subsidiary captive REIT that owns the Doubletree Guest Suites Times Square.
Segment Reporting	Segment Reporting The Company reports its consolidated financial statements in accordance with the Segment Reporting Topic of the FASB ASC. Currently, the Company operates in one segment, operations held for investment.

Organization and Description 21

Organization and Description of Business (Tables)	6 Months Ended
	Jun. 30, 2015
Organization and Description of Business
Schedule of number of hotels managed by each third-party manager	Number of Hotels Subsidiaries of Marriott International, Inc. or Marriott Hotel Services, Inc. (collectively, “Marriott”) Interstate Hotels & Resorts, Inc. Highgate Hotels L.P. and an affiliate Crestline Hotels & Resorts Hilton Worldwide Hyatt Corporation Davidson Hotels & Resorts Dimension Development Company Fairmont Hotels & Resorts (U.S.) Total hotels held for investment

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2015
Summary of Significant Accounting Policies
Schedule of assets measured at fair value on a recurring and non-recurring basis	The following table presents the Company’s assets measured at fair value on a recurring and non-recurring basis at June 30, 2015 and December 31, 2014 (in thousands): Fair Value Measurements at Reporting Date Total Level 1 Level 2 Level 3 June 30, 2015 (unaudited): Interest rate cap derivative agreements $ — $ — $ — $ — Life insurance policy (1) — — Total assets at June 30, 2015 $ $ — $ $ — December 31, 2014: Interest rate cap derivative agreements $ — $ — $ — $ — Life insurance policy (1) — — Total assets at December 31, 2014 $ $ — $ $ — (1) Includes the split life insurance policy for one of the Company’s former associates, which the Company values using Level 2 measurements. These amounts are included in other assets, net on the accompanying consolidated balance sheets, and will be used to reimburse the Company for payments made to the former associate from the related retirement benefit agreement, which is included in accrued payroll and employee benefits on the accompanying consolidated balance sheets.
Schedule of liabilities measured at fair value on a recurring and non-recurring basis	The following table presents the Company’s liabilities measured at fair value on a recurring and non-recurring basis at June 30, 2015 and December 31, 2014 (in thousands): Fair Value Measurements at Reporting Date Total Level 1 Level 2 Level 3 June 30, 2015 (unaudited): Retirement benefit agreement (1) $ $ — $ $ — December 31, 2014: Retirement benefit agreement (1) $ $ — $ $ — (1) Includes the retirement benefit agreement for one of the Company’s former associates, which the Company values using Level 2 measurements. The agreement calls for the balance of the retirement benefit to be paid out to the former associate in 10 annual installments, beginning in 2011. As such, the Company has paid the former associate a total of $1.0 million through June 30, 2015, which was reimbursed to the Company using funds from the related split life insurance policy noted above. These amounts are included in accrued payroll and employee benefits on the accompanying consolidated balance sheets.
Schedule of computation of basic and diluted earnings per common share	The following table sets forth the computation of basic and diluted earnings per common share (in thousands, except per share data): Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 (unaudited) (unaudited) (unaudited) (unaudited) Numerator: Net income $ $ $ $ Income from consolidated joint ventures attributable to non-controlling interests Preferred stock dividends Dividends paid on unvested restricted stock compensation Undistributed income allocated to unvested restricted stock compensation Numerator for basic and diluted income attributable to common stockholders $ $ $ $ Denominator: Weighted average basic and diluted common shares outstanding Basic and diluted income attributable to common stockholders per common share $ $ $ $

Investment in Hotel Properties

Investment in Hotel Properties (Tables)	6 Months Ended
	Jun. 30, 2015
Investment in Hotel Properties
Schedule of investment in hotel properties	Investment in hotel properties, net consisted of the following (in thousands): June 30, December 31, 2015 2014 (unaudited) Land $ $ Buildings and improvements Furniture, fixtures and equipment Intangibles Franchise fees Construction in process Investment in hotel properties, gross Accumulated depreciation and amortization Investment in hotel properties, net $ $
Effects of acquisitions on results of operations	In the Company’s opinion, all significant adjustments necessary to reflect the effects of the acquisitions have been made (in thousands, except per share data): Three Months Ended Six Months Ended June 30, 2014 June 30, 2014 (unaudited) (unaudited) Revenues $ $ Income from continuing operations attributable to common stockholders $ $ Income from continuing operations per diluted share attributable to common stockholders $ $

Other Assets (Tables)

Other Assets (Tables)	6 Months Ended
	Jun. 30, 2015
Other Assets
Schedule of other assets	Other assets, net consisted of the following (in thousands): June 30, December 31, 2015 2014 (unaudited) Property and equipment, net $ $ Land held for development Intangibles, net Deferred expense on straightlined third-party tenant leases Other receivables Other Total other assets $ $
Schedule of property and equipment	Property and equipment , net consisted of the following (in thousands): June 30, December 31, 2015 2014 (unaudited) Cost basis $ $ Accumulated depreciation Property and equipment, net $ $

Notes Payable (Tables)

Notes Payable (Tables)	6 Months Ended
	Jun. 30, 2015
Notes Payable
Schedule of notes payable	Notes payable consisted of the following (in thousands): June 30, December 31, 2015 2014 (unaudited) Notes payable requiring payments of interest and principal, with fixed rates ranging from 4.12% to 5.95%; maturing at dates ranging from January 2016 through January 2025. The notes are collateralized by first deeds of trust on 10 hotel properties at June 30, 2015, and 14 hotel properties at December 31, 2014. $ $ Note payable requiring payments of interest and principal, bearing a blended rate of one -month LIBOR plus 225 basis points; maturing in August 2019. The note is collateralized by a first deed of trust on one hotel property. Note payable requiring payments of interest only through October 2013, and interest and principal thereafter, with a blended interest rate of one -month LIBOR plus 325 basis points; maturing in October 2018. The note is collateralized by a first deed of trust on one hotel property. Total notes payable Less: current portion Notes payable, less current portion $ $
Schedule of interest expense on notes payable	Total interest incurred and expensed on the notes payable was as follows (in thousands): Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 (unaudited) (unaudited) (unaudited) (unaudited) Interest expense on debt and capital lease obligations $ $ $ $ Loss (gain) on derivatives, net Amortization and write-off of deferred financing fees Total interest expense $ $ $ $

Other Current Liabilities and26

Other Current Liabilities and Other Liabilities (Tables)	6 Months Ended
	Jun. 30, 2015
Other Current Liabilities and Other Liabilities
Schedule of other current liabilities	Other current liabilities consisted of the following (in thousands): June 30, December 31, 2015 2014 (unaudited) Property, sales and use taxes payable $ $ Income tax payable Accrued interest Advance deposits Management fees payable Other Total other current liabilities $ $
Schedule of other liabilities	Other liabilities consisted of the following (in thousands): June 30, December 31, 2015 2014 (unaudited) Deferred gain on sale of asset $ $ Accrued income tax Deferred revenue Deferred rent Deferred incentive management fees Other Total other liabilities $ $

Long-Term Incentive Plan (Table

Long-Term Incentive Plan (Tables)	6 Months Ended
	Jun. 30, 2015
Long-Term Incentive Plan
Schedule of compensation expense and forfeitures related to restricted shares and performance awards	The Company’s compensation expense and forfeitures related to restricted shares and performance awards for the three and six months ended June 30, 2015 and 2014 were as follows (in thousands): Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 (unaudited) (unaudited) (unaudited) (unaudited) Compensation expense, including forfeitures $ $ $ $
Summary of total compensation expense in relation to vesting of restricted common stock	The Company’s total compensation expense in relation to its vesting of restricted common stock presented in the Company’s consolidated statement of equity for the six months ended June 30, 2015 is as follows (in thousands): Six Months Ended June 30, 2015 (unaudited) Compensation expense, including forfeitures $ Net-settle adjustment Amortization related to shares issued to design and construction employees Vesting of restricted stock presented on statement of equity $

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies
Schedule of basic and incentive management fees	Total basic and incentive management fees incurred by the Company during the three and six months ended June 30, 2015 and 2014 were included in property general and administrative expense on the Company’s consolidated statements of operations and comprehensive income as follows (in thousands): Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 (unaudited) (unaudited) (unaudited) (unaudited) Basic management fees $ $ $ $ Incentive management fees Total basic and incentive management fees $ $ $ $
Schedule of license and franchise costs	Total license and franchise costs incurred by the Company during the three and six months ended June 30, 2015 and 2014 were included in the Company’s consolidated statements of operations and comprehensive income as follows (in thousands): Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 (unaudited) (unaudited) (unaudited) (unaudited) Franchise assessments (1) $ $ $ $ Franchise royalties Total franchise costs $ $ $ $ (1) Includes advertising, reservation and priority club assessments.
Schedule of assets under capital lease	Assets under capital lease were included in investment in hotel properties, net on the Company’s consolidated balance sheets as follows (in thousands): June 30, December 31, 2015 2014 (unaudited) Buildings and improvements $ $ Furniture, fixtures and equipment — Capital lease assets, gross Accumulated depreciation Capital lease assets, net $ $
Schedule of future minimum lease payments under capital leases	Future minimum lease payments under capital leases together with the present value of the net minimum lease payments as of June 30, 2015 are as follows (in thousands): 2015 $ 2016 2017 2018 2019 Thereafter Total minimum lease payments (1) Less: Amount representing interest (2) Present value of net minimum lease payments (3) $ (1) Minimum lease payments do not include percentage rent which may be paid under the Hyatt Chicago Magnificent Mile building lease on the basis of 4.0% of the hotel’s gross room revenues over a certain threshold. For the three and six months ended June 30, 2015, $19,000 in percentage was due under the Hyatt Chicago Magnificent Mile’s building lease. No percentage rent was due for either the three or six months ended June 30, 2014. (2) Interest includes the amount necessary to reduce net minimum lease payments to present value calculated at the Company’s incremental borrowing rate at lease inception. (3) The present value of net minimum lease payments are presented on the Company’s consolidated balance sheet as of June 30, 2015 as a current obligation of $1,000 , which is included in accounts payable and accrued expenses, and as a long term obligation of $ 15.6 million, which is included in capital lease obligations, less current portion.
Schedule of ground, building and air lease rent	Total rent expense incurred pursuant to ground, building and air lease agreements for the three and six months ended June 30, 2015 and 2014 was included in property tax, ground lease and insurance on the Company’s consolidated statements of operations and comprehensive income as follows (in thousands): Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 (unaudited) (unaudited) (unaudited) (unaudited) Minimum rent, including straightline adjustments $ $ Percentage rent (1) Total $ $ $ $ (1) Several of the Company’s hotels pay percentage rent, which is calculated on operating revenues above certain thresholds.
Schedule of hotel geographic concentration of risk	Greater Washington DC California New York Illinois Massachusetts Area (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Number of hotels Percentage of total rooms % % % % % Percentage of total consolidated revenue for the six months ended June 30, 2015 % % % % %

Organization and Description 29

Organization and Description of Business (Details) - Jun. 30, 2015 - item	Total
Organization and Description of Business
Number of hotels in which the company has interests	30
Number of hotels managed by third parties	30
Marriott
Organization and Description of Business
Number of hotels managed by third parties	11
Interstate Hotels & Resorts, Inc
Organization and Description of Business
Number of hotels managed by third parties	6
Highgate Hotels L.P. and an affiliate
Organization and Description of Business
Number of hotels managed by third parties	4
Crestline Hotels & Resorts
Organization and Description of Business
Number of hotels managed by third parties	2
Hilton Worldwide
Organization and Description of Business
Number of hotels managed by third parties	2
Hyatt Corporation
Organization and Description of Business
Number of hotels managed by third parties	2
Davidson Hotels & Resorts
Organization and Description of Business
Number of hotels managed by third parties	1
Dimension Development Company
Organization and Description of Business
Number of hotels managed by third parties	1
Fairmont Hotels & Resorts (U.S.)
Organization and Description of Business
Number of hotels managed by third parties	1
Sunstone Hotel Partnership, LLC
Organization and Description of Business
Controlling interest owned (as a percent)	100.00%

Summary of Significant Accoun30

Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Accounts Receivable
Allowance for doubtful accounts (in dollars)	$ 0.3	$ 0.2

Summary of Significant Accoun31

Summary of Significant Accounting Policies (Details)	Jun. 30, 2015USD ($)item	Dec. 31, 2014USD ($)item	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)	Dec. 31, 2011item
Fair value of assets and liabilities measured at fair value on a recurring and non-recurring basis
Impairment loss on continuing operations			$ 0	$ 0	$ 0	$ 0
Goodwill impairment loss			$ 0	$ 0	$ 0	$ 0
Percentage of debt having fixed interest rates	69.40%	71.60%	69.40%		69.40%
Robert A. Alter
Liabilities:
Number of installments to be paid out under the Retirement Benefit Agreement | item							10
Amount paid under the Retirement Benefit Agreement	$ 1,000,000		$ 1,000,000		$ 1,000,000
Total at the end of the period
Assets:
Life insurance policy	1,005,000	$ 1,198,000	1,005,000		1,005,000
Total assets	1,005,000	1,198,000	1,005,000		1,005,000
Liabilities:
Retirement benefit agreement	1,005,000	1,198,000	1,005,000		1,005,000
Level 2
Assets:
Life insurance policy	1,005,000	1,198,000	1,005,000		1,005,000
Total assets	1,005,000	1,198,000	1,005,000		1,005,000
Liabilities:
Retirement benefit agreement	$ 1,005,000	$ 1,198,000	1,005,000		1,005,000
Level 3
Fair value of assets and liabilities measured at fair value on a recurring and non-recurring basis
Weighted average cost of debt (as a percent)	4.50%	4.50%
Fair value of debt	$ 1,300,000,000	$ 1,400,000,000	$ 1,300,000,000		$ 1,300,000,000
Interest Rate Cap Agreement
Fair value of assets and liabilities measured at fair value on a recurring and non-recurring basis
Number of derivative agreements | item	2	2	2		2

Summary of Significant Accoun32

Summary of Significant Accounting Policies (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2015USD ($)item	Jun. 30, 2015USD ($)item	Dec. 31, 2014item
Assets Held for Sale
Maximum time period for sale for classification of asset as held for sale		12 months
Number of hotels and/or other assets held for sale | item	0	0	0
Deferred Financing Fees
Loss on extinguishment of debt	$ (2)	$ (2)
Senior corporate credit facility
Deferred Financing Fees
Write-off of deferred financing fees	$ 500

Summary of Significant Accoun33

Summary of Significant Accounting Policies (Details) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015USD ($)$ / sharesshares	Jun. 30, 2014USD ($)$ / sharesshares	Jun. 30, 2015USD ($)item$ / sharesshares	Jun. 30, 2014USD ($)$ / sharesshares
Numerator:
Net income	$ 53,657	$ 43,535	$ 54,860	$ 40,039
Income from consolidated joint ventures attributable to non-controlling interests	(2,480)	(1,667)	(4,661)	(3,901)
Preferred stock dividends	(2,300)	(2,300)	(4,600)	(4,600)
Dividends paid on unvested restricted stock compensation	(55)	(97)	(113)	(197)
Undistributed income allocated to unvested restricted stock compensation	(133)	(206)	(96)	(87)
Numerator for basic and diluted income attributable to common stockholders	$ 48,689	$ 39,265	$ 45,390	$ 31,254
Denominator:
Weighted average basic and diluted common shares outstanding (in shares) | shares	207,577	182,604	207,091	181,836
Basic and diluted income attributable to common stockholders per common share (in dollars per share) | $ / shares	$ 0.23	$ 0.22	$ 0.22	$ 0.17
Segment Reporting
Number of operating segments | item			1

Summary of Significant Accoun34

Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Doubletree Guest Suites Times Square
Non-Controlling Interests
Preferred equity interest in Doubletree Guest Suites Times Square captive REIT	$ 0.1	$ 0.1
Hilton San Diego Bayfront
Non-Controlling Interests
Minority interest percentage in Hilton San Diego Bayfront	25.00%	25.00%

Investment in Hotel Propertie35

Investment in Hotel Properties (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Investment in Hotel Properties
Land	$ 570,011	$ 570,011
Buildings and improvements	3,276,598	3,237,596
Furniture, fixtures and equipment	471,193	450,057
Intangibles	147,826	147,947
Franchise fees	1,167	1,167
Construction in process	84,760	68,275
Investment in hotel properties, gross	4,551,555	4,475,053
Accumulated depreciation and amortization	(1,019,399)	(936,924)
Investment in hotel properties, net	$ 3,532,156	$ 3,538,129

Investment in Hotel Propertie36

Investment in Hotel Properties (Details) - Jun. 30, 2014 - USD ($) $ / shares in Units, $ in Thousands	Total	Total
Unaudited pro forma results of operations
Revenues	$ 314,321	$ 575,219
Income from continuing operations attributable to common stockholders	$ 36,291	$ 33,118
Income from continuing operations per diluted share attributable to common stockholders	$ 0.20	$ 0.18

Discontinued Operations (Detail

Discontinued Operations (Details) - Rochester Portfolio	1 Months Ended		3 Months Ended
	May. 31, 2014USD ($)	Jan. 31, 2013roomproperty	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)
Discontinued Operations
Number of hotels and/or other assets sold | property		4
Number of rooms sold | room		1,222
Gain (loss) on sale	$ 7,000,000
Indemnification Agreement [Member]
Discontinued Operations
Settlement costs accrued during the period			$ 1,800,000
Number of hotels for which potential future costs for certain capital expenditures exist			$ 1
Balance of accrued settlement costs				$ 0
Retirement plans
Discontinued Operations
Reduction in pension plan liability	$ (7,000,000)

Interest Rate Derivative Agre38

Interest Rate Derivative Agreements (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2015	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)item	Apr. 30, 2015
Interest Rate Derivative Agreements
Cost of new interest rate cap agreement			$ 13
Net gain due to changes in the fair value of the company's derivative agreements			$ (10)	$ 234
Doubletree Guest Suites Times Square Mortgage Payable
Interest Rate Derivative Agreements
Interest rate, description of reference rate			one-month LIBOR		one-month LIBOR
Interest rate added to base rate (as a percent)			3.25%		3.25%
Entity that owns the Hilton San Diego Bayfront Mortgage Payable
Interest Rate Derivative Agreements
Interest rate, description of reference rate			one-month LIBOR		one-month LIBOR
Interest rate added to base rate (as a percent)			2.25%		2.25%
Interest rate derivative agreements. | Designated as hedging instrument
Interest Rate Derivative Agreements
Number of derivative agreements designated and qualifying as hedging instruments | item			0		0
Interest Rate Cap Agreement
Interest Rate Derivative Agreements
Number of interest rate cap derivative agreements | item			2		2
Interest Rate Cap Agreement | Not designated as hedging instrument | Other assets, net
Interest Rate Derivative Agreements
Number of interest rate cap derivative agreements | item			2		2
Interest Rate Cap Agreement | Not designated as hedging instrument | Doubletree Guest Suites Times Square Mortgage Payable
Interest Rate Derivative Agreements
Interest rate, description of reference rate			LIBOR		LIBOR
Strike rate under interest rate cap agreement			4.00%		4.00%
Notional amount			$ 176,200		$ 177,400
Interest Rate Cap Agreement | Not designated as hedging instrument | Entity that owns the Hilton San Diego Bayfront Mortgage Payable
Interest Rate Derivative Agreements
Interest rate, description of reference rate	LIBOR				LIBOR
Strike rate under interest rate cap agreement	3.75%		4.25%		3.75%	4.25%
Notional amount			$ 113,600		$ 117,000
Interest Rate Swap Agreement | Not designated as hedging instrument | JW Marriott New Orleans Original Mortgage Payable
Interest Rate Derivative Agreements
Net gain due to changes in the fair value of the company's derivative agreements		$ 100		$ 200

Other Assets (Details)

Other Assets (Details)	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Jan. 31, 2013USD ($)roomproperty	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)	Jul. 24, 2015USD ($)
Other assets, net
Property and equipment, net		$ 2,018,000		$ 2,018,000		$ 2,127,000
Land held for development		188,000		188,000		188,000
Intangibles, net		6,378,000		6,378,000		6,677,000
Deferred expense on straightlined third-party tenant leases		3,002,000		3,002,000		1,426,000
Other receivables		2,836,000		2,836,000		2,094,000
Other		1,907,000		1,907,000		1,973,000
Total other assets, net		16,329,000		16,329,000		14,485,000
Amortization expense				4,052,000	$ 3,510,000
Deferred gain on sale of asset		7,000,000		7,000,000		7,000,000
Acquisition deposits					15,000,000
BuyEfficient, LLC
Other assets, net
Accumulated amortization		2,700,000		2,700,000		2,400,000
Amortization expense		100,000	$ 100,000	$ 300,000	300,000
BuyEfficient, LLC | Minimum
Other assets, net
Useful life of intangibles				7 years
BuyEfficient, LLC | Maximum
Other assets, net
Useful life of intangibles				20 years
Rochester Portfolio
Other assets, net
Number of hotels and/or other assets sold | property	4
Number of rooms sold | room	1,222
Deferred gain on sale of asset	$ 25,000,000	25,000,000		$ 25,000,000		25,000,000
Rochester Portfolio | Preferred equity investment
Other assets, net
Preferred equity investment	$ 25,000,000	25,000,000		$ 25,000,000		$ 25,000,000
Dividend yield on preferred equity investment (as a percent)	11.00%			11.00%		11.00%
Carrying value of asset net of deferred gain		0		$ 0		$ 0
Dividends on the preferred equity investment		$ 700,000	$ 700,000	$ 1,400,000	$ 1,400,000
Rochester Portfolio | Preferred equity investment | Subsequent Event
Other assets, net
Preferred equity investment							$ 25,000,000

Other Assets (Details)40

Other Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Other Assets
Property and equipment cost basis	$ 11,958	$ 11,573
Accumulated depreciation	(9,940)	(9,446)
Property and equipment, net	$ 2,018	$ 2,127

Notes Payable (Details)

Notes Payable (Details) - Derivative Contract [Domain] $ in Thousands	Jun. 30, 2015USD ($)property	May. 01, 2015USD ($)propertyitem	Apr. 02, 2015USD ($)	Jun. 30, 2015USD ($)property	Jun. 30, 2015USD ($)property	Dec. 31, 2014USD ($)property	Mar. 31, 2015USD ($)
Notes payable:
Notes payable	$ 1,318,657			$ 1,318,657	$ 1,318,657	$ 1,429,292
Less: current portion	(135,825)			(135,825)	(135,825)	(121,328)
Notes payable, less current portion	$ 1,182,832			$ 1,182,832	$ 1,182,832	1,307,964
Number of unencumbered hotels | property	18			18	18
Payments of deferred financing costs					$ (4,131)
Loss on extinguishment of debt				$ (2)	(2)
Notes payable maturing in various years
Notes payable:
Notes payable	$ 915,741			$ 915,741	$ 915,741	$ 1,023,780
Number of hotels provided as collateral | property	10			10	10	14
Notes payable maturing in various years | Minimum
Notes payable:
Fixed interest rate, low end of range (as a percent)					4.12%	4.12%
Notes payable maturing in various years | Maximum
Notes payable:
Fixed interest rate, high end of range (as a percent)					5.95%	5.95%
Entity that owns the Hilton San Diego Bayfront Mortgage Payable
Notes payable:
Notes payable	$ 226,873			$ 226,873	$ 226,873	$ 228,296
Number of hotels provided as collateral | property	1			1	1	1
Interest rate, description of reference rate					one-month LIBOR	one-month LIBOR
Interest rate added to base rate (as a percent)					2.25%	2.25%
Doubletree Guest Suites Times Square Mortgage Payable
Notes payable:
Notes payable	$ 176,043			$ 176,043	$ 176,043	$ 177,216
Number of hotels provided as collateral | property	1			1	1	1
Interest rate, description of reference rate					one-month LIBOR	one-month LIBOR
Interest rate added to base rate (as a percent)					3.25%	3.25%
Senior corporate credit facility
Notes payable:
Interest rate, description of reference rate	LIBOR		LIBOR
Maximum borrowing capacity of credit facility	$ 400,000		$ 400,000	$ 400,000	$ 400,000		$ 150,000
Term of new credit facility			4 years
Extended maturity period			1 year
Maximum borrowing capacity of credit facility with lender approval	$ 800,000		$ 800,000	800,000	$ 800,000
Write-off of deferred financing fees				$ 500
Senior corporate credit facility | Minimum
Notes payable:
Interest rate added to base rate (as a percent)			1.55%	1.55%
Decline in pricing from the old credit facility			(0.30%)
Senior corporate credit facility | Maximum
Notes payable:
Interest rate added to base rate (as a percent)			2.30%	2.30%
Decline in pricing from the old credit facility			(0.60%)
Notes maturing in May 2015
Notes payable:
Number of hotels provided as collateral | property		4
Repayment of mortgage debt		$ 99,100
Number of loans to be repaid | item		4

Notes Payable (Details)42

Notes Payable (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Interest incurred and expensed on the notes payable
Loss (gain) on derivatives, net			$ 10	$ (234)
Amortization and write-off of deferred financing fees			1,780	1,472
Total interest incurred and expensed on debt and capital lease obligations	$ 17,289	$ 18,331	34,615	36,614
Notes payable and capital lease obligations
Interest incurred and expensed on the notes payable
Interest expense on debt and capital lease obligations	16,138	17,720	32,825	35,376
Loss (gain) on derivatives, net	10	(125)	10	(234)
Amortization and write-off of deferred financing fees	1,141	736	1,780	1,472
Total interest incurred and expensed on debt and capital lease obligations	$ 17,289	$ 18,331	$ 34,615	$ 36,614

Other Current Liabilities and43

Other Current Liabilities and Other Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Other Current Liabilities
Property, sales and use taxes payable	$ 18,574	$ 14,490
Income tax payable	151	295
Accrued interest	3,920	3,289
Advance deposits	14,765	10,742
Management fees payable	2,029	3,467
Other	4,735	4,183
Other Current Liabilities	44,174	36,466
Other Liabilities
Deferred gain on sale of asset	7,000	7,000
Accrued income tax	1,568	1,541
Deferred revenue	6,782	6,790
Deferred rent	16,479	15,075
Deferred incentive management fees	934	534
Other	2,502	2,667
Other Liabilities	$ 35,265	$ 33,607

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2015	Jun. 30, 2015	Feb. 28, 2014
Series D Cumulative Redeemable Preferred Stock
Stockholders' equity
Number of shares of stock issued	4,600,000	4,600,000	4,600,000	4,600,000
Preferred stock, 8.0% Cumulative Redeemable Preferred Stock, dividend rate (as a percent)	8.00%	8.00%
Liquidation preference (in dollars per share)	$ 25	$ 25	$ 25	$ 25
Future redemption price (in dollars per share)	$ 25	$ 25
Common Stock | At The Market
Stockholders' equity
Stock issuance program, remaining amount	$ 128.4		$ 128.4	$ 128.4
Number of shares issued			0	0
Common Stock | Maximum | At The Market
Stockholders' equity
Stock issuance program, authorized amount					$ 150

Long-Term Incentive Plan (Detai

Long-Term Incentive Plan (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended		3 Months Ended		6 Months Ended
	Jan. 31, 2015	Apr. 30, 2008	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Long-Term Incentive Plan
Amortization related to shares issued to design and construction employees					$ 304	$ 234
Vesting of restricted stock presented on statement of equity					716
Amortization of deferred stock compensation					4,681	3,316
Restricted Shares and Performance awards
Long-Term Incentive Plan
Compensation Expense, including forfeitures			$ 2,412	$ 2,671	6,844	$ 4,707
Net-settle adjustment					(6,432)
Amortization related to shares issued to design and construction employees					304
Vesting of restricted stock presented on statement of equity					$ 716
Restricted Shares and Performance awards | Minimum
Long-Term Incentive Plan
Vesting period					3 years
Restricted Shares and Performance awards | Maximum
Long-Term Incentive Plan
Vesting period					5 years
Restricted Shares and Performance awards | Kenneth E. Cruse
Long-Term Incentive Plan
Compensation Expense, including forfeitures	$ 2,500
Amortization of deferred stock compensation	$ 1,600
Stock Options | Robert A. Alter
Stock options
Number of nonqualified stock options approved by the compensation committee of the Company's board of directors (in shares)		200,000
Exercise price of options vested (in dollars per share)		$ 17.71	$ 17.71		$ 17.71

Commitments and Contingencies46

Commitments and Contingencies (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Basic and incentive management fees incurred
Basic management fees	$ 9,309	$ 8,268	$ 17,131	$ 14,981
Incentive management fees	1,946	926	3,235	1,958
Total basic and incentive management fees	11,255	9,194	20,366	16,939
License and Franchise Agreements
Franchise assessments	7,581	7,128	13,668	12,720
Franchise royalties	3,237	3,133	5,750	5,618
Total license and franchise costs	10,818	$ 10,261	$ 19,418	$ 18,338
Minimum
Management Agreements
Basic management fees (as a percent)			1.50%
Maximum
Management Agreements
Basic management fees (as a percent)			3.50%
Renovation and Construction Commitments
Renovation and Construction Commitments
Remaining construction commitments	$ 75,700		$ 75,700

Commitments and Contingencies47

Commitments and Contingencies (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)
Capital Leases
Capital lease obligation, noncurrent	$ 15,576,000		$ 15,576,000		$ 15,576,000
Capital lease obligation, current	1,000		1,000
Assets under capital lease
Capital Leased Assets, Gross	58,799,000		58,799,000		58,903,000
Accumulated depreciation	(4,533,000)		(4,533,000)		(3,841,000)
Capital lease assets, net	54,266,000		54,266,000		55,062,000
Future minimum lease payments under capital leases
2,015	1,403,000		1,403,000
2,016	1,403,000		1,403,000
2,017	1,403,000		1,403,000
2,018	1,403,000		1,403,000
2,019	1,403,000		1,403,000
Thereafter	108,713,000		108,713,000
Future minimum lease payments under capital leases
Total minimum lease payments	115,728,000		115,728,000
Less: Amount representing interest	(100,152,000)		(100,152,000)
Present value of net minimum lease payments	$ 15,576,000		$ 15,576,000
Ground and Operating Leases
Number of Real Estate Properties | item	30		30
Minimum rent, including straightline adjustments	$ 3,723,000	$ 3,782,000	$ 7,420,000	$ 7,610,000
Percentage rent	911,000	729,000	1,729,000	1,357,000
Total rent expense included in property tax, ground lease and insurance	4,634,000	4,511,000	9,149,000	8,967,000
Lease expense on corporate facility	100,000	100,000	200,000	200,000
Buildings and improvements
Assets under capital lease
Capital Leased Assets, Gross	58,799,000		$ 58,799,000		58,799,000
Furniture, fixtures and equipment
Assets under capital lease
Capital Leased Assets, Gross					$ 104,000
Hyatt Chicago Magnificent Mile
Capital Leases
Capital lease contingent rent criteria (as a percent)			4.00%
Percentage rent due	$ 19,000	0	$ 19,000	0
Fairmont Newport Beach Land Member
Ground and Operating Leases
Total rent expense included in property tax, ground lease and insurance		$ 100,000		$ 300,000

Commitments and Contingencies48

Commitments and Contingencies (Details) - Jun. 30, 2015 $ in Thousands	USD ($)propertyitem
Concentration of Risk
Number of hotels which are held for investment	30
Other
Term of unsecured environmental indemnities
Damage limitation of unsecured environmental indemnities | $	$ 0
California
Concentration of Risk
Number of hotels which are held for investment	9
New York
Concentration of Risk
Number of hotels which are held for investment	3
Illinois
Concentration of Risk
Number of hotels which are held for investment	3
Massachusetts
Concentration of Risk
Number of hotels which are held for investment	3
Greater Washington DC Area
Concentration of Risk
Number of hotels which are held for investment	3
CA, NY, IL, MA, Greater Washington DC. Area [Member]
Concentration of Risk
Number of hotels which are held for investment | property	21
Number of rooms | California
Concentration of Risk
Concentration risk (as a percent)	31.00%
Number of rooms | New York
Concentration of Risk
Concentration risk (as a percent)	9.00%
Number of rooms | Illinois
Concentration of Risk
Concentration risk (as a percent)	8.00%
Number of rooms | Massachusetts
Concentration of Risk
Concentration risk (as a percent)	14.00%
Number of rooms | Greater Washington DC Area
Concentration of Risk
Concentration risk (as a percent)	13.00%
Revenue generated by hotels | California
Concentration of Risk
Concentration risk (as a percent)	35.00%
Revenue generated by hotels | New York
Concentration of Risk
Concentration risk (as a percent)	11.00%
Revenue generated by hotels | Illinois
Concentration of Risk
Concentration risk (as a percent)	7.00%
Revenue generated by hotels | Massachusetts
Concentration of Risk
Concentration risk (as a percent)	12.00%
Revenue generated by hotels | Greater Washington DC Area
Concentration of Risk
Concentration risk (as a percent)	12.00%
Workers' compensation insurance programs
Other
Outstanding irrevocable letters of credit | $	$ 600
Draws on letters of credit | $	$ 0

Subsequent Events (Details)

Subsequent Events (Details) - Rochester Portfolio - USD ($)	1 Months Ended	3 Months Ended
	May. 31, 2014	Sep. 30, 2015	Jul. 24, 2015	Jun. 30, 2015	Dec. 31, 2014	Jan. 31, 2013
Subsequent Events
Gain (loss) on sale	$ 7,000,000
Subsequent Event
Subsequent Events
Gain (loss) on sale		$ 16,000,000
Preferred equity investment
Subsequent Events
Preferred equity investment				$ 25,000,000	$ 25,000,000	$ 25,000,000
Carrying Value of Asset Net of Deferred Gain				0	0
Preferred equity investment | Subsequent Event
Subsequent Events
Preferred equity investment			$ 25,000,000
Proceeds received on sale of preferred equity investment and settlement of loan			16,000,000
Working capital advance provided to buyer
Subsequent Events
Carrying Value of Asset Net of Deferred Gain				$ 0	$ 0
Working capital advance provided to buyer | Subsequent Event
Subsequent Events
Working capital advance provided to buyer			$ 3,700,000