Sunstone Hotel Investors (SHO) 10-Q 3 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Jul. 31, 2017
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, 2017
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		225,342,925
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 597,318	$ 369,537
Restricted cash	66,415	67,923
Accounts receivable, net	46,319	39,337
Inventories	1,235	1,225
Prepaid expenses	8,817	10,489
Assets held for sale, net		79,113
Total current assets	720,104	567,624
Investment in hotel properties, net	3,104,969	3,158,219
Deferred financing fees, net	1,826	4,002
Other assets, net	15,050	9,389
Total assets	3,841,949	3,739,234
Current liabilities:
Accounts payable and accrued expenses	29,182	36,110
Accrued payroll and employee benefits	20,231	24,896
Dividends and distributions payable	14,465	119,847
Other current liabilities	46,111	39,869
Current portion of notes payable, net	9,023	184,929
Liabilities of assets held for sale		3,153
Total current liabilities	119,012	408,804
Notes payable, less current portion, net	980,066	746,374
Capital lease obligations, less current portion	15,574	15,574
Other liabilities	36,631	36,650
Total liabilities	1,151,283	1,207,402
Commitments and contingencies (Note 11)
Equity
Common stock, $0.01 par value, 500,000,000 shares authorized, 225,152,175 shares issued and outstanding at June 30, 2017 and 220,073,140 shares issued and outstanding at December 31, 2016	2,252	2,201
Additional paid in capital	2,672,216	2,596,620
Retained earnings	897,968	786,901
Cumulative dividends and distributions	(1,121,645)	(1,092,952)
Total stockholders' equity	2,640,791	2,482,770
Noncontrolling interest in consolidated joint venture	49,875	49,062
Total equity	2,690,666	2,531,832
Total liabilities and equity	3,841,949	3,739,234
Series E Cumulative Redeemable Preferred Stock
Equity
Cumulative Redeemable Preferred Stock	115,000	115,000
Series F Cumulative Redeemable Preferred Stock
Equity
Cumulative Redeemable Preferred Stock	$ 75,000	$ 75,000

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
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)	225,152,175	220,073,140
Common stock, shares outstanding (in shares)	225,152,175	220,073,140
Series E Cumulative Redeemable Preferred Stock
Preferred stock, Cumulative Redeemable Preferred Stock, dividend rate (as a percent)	6.95%	6.95%
Preferred stock, Cumulative Redeemable Preferred Stock, shares issued (in shares)	4,600,000	4,600,000
Preferred stock, Cumulative Redeemable Preferred Stock, shares outstanding (in shares)	4,600,000	4,600,000
Preferred stock, Cumulative Redeemable Preferred Stock, liquidation preference (in dollars per share)	$ 25	$ 25
Series F Cumulative Redeemable Preferred Stock
Preferred stock, Cumulative Redeemable Preferred Stock, dividend rate (as a percent)	6.45%	6.45%
Preferred stock, Cumulative Redeemable Preferred Stock, shares issued (in shares)	3,000,000	3,000,000
Preferred stock, Cumulative Redeemable Preferred Stock, shares outstanding (in shares)	3,000,000	3,000,000
Preferred stock, Cumulative Redeemable Preferred Stock, liquidation preference (in dollars per share)	$ 25	$ 25

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
REVENUES
Room	$ 223,653	$ 224,176	$ 414,020	$ 411,473
Food and beverage	78,621	81,298	154,122	152,532
Other operating	16,522	16,686	31,397	32,447
Total revenues	318,796	322,160	599,539	596,452
OPERATING EXPENSES
Room	54,557	54,517	105,849	105,561
Food and beverage	50,969	52,939	101,506	104,868
Other operating	4,033	4,132	7,864	8,188
Advertising and promotion	14,911	15,277	29,857	30,270
Repairs and maintenance	10,796	10,999	21,763	22,263
Utilities	7,291	7,348	14,513	14,862
Franchise costs	9,881	9,898	17,936	17,994
Property tax, ground lease and insurance	20,791	18,157	42,078	40,997
Other property-level expenses	35,766	37,982	70,504	72,695
Corporate overhead	7,573	6,809	14,352	13,526
Depreciation and amortization	39,525	40,680	80,332	80,727
Total operating expenses	256,093	258,738	506,554	511,951
Operating income	62,703	63,422	92,985	84,501
Interest and other income	849	355	1,570	844
Interest expense	(13,084)	(15,872)	(24,333)	(35,882)
Loss on extinguishment of debt		(154)	(4)	(259)
Gain on sale of assets	1,189	18,223	45,474	18,223
Income before income taxes	51,657	65,974	115,692	67,427
Income tax provision	(242)	(238)	(450)	(475)
NET INCOME	51,415	65,736	115,242	66,952
Income from consolidated joint venture attributable to noncontrolling interest	(2,183)	(1,655)	(4,175)	(3,305)
Preferred stock dividends and redemption charge	(3,207)	(6,783)	(6,414)	(9,549)
INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS	46,025	57,298	104,653	54,098
Other comprehensive income:
COMPREHENSIVE INCOME	51,415	65,736	115,242	66,952
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS	$ 46,025	$ 57,298	$ 104,653	$ 54,098
Basic and diluted per share amounts:
Basic and diluted income attributable to common stockholders per common share (in dollars per share)	$ 0.21	$ 0.26	$ 0.47	$ 0.25
Basic and diluted weighted average common shares outstanding (in shares)	220,130	215,385	219,614	214,136
Common stock distributions and distributions payable, per share (in dollars per share)	$ 0.05	$ 0.05	$ 0.10	$ 0.10

CONSOLIDATED STATEMENTS OF EQUI

CONSOLIDATED STATEMENTS OF EQUITY - 6 months ended Jun. 30, 2017 - USD ($)	Series E Cumulative Redeemable Preferred StockPreferred Stock	Series E Cumulative Redeemable Preferred StockCumulative dividends and distributions	Series E Cumulative Redeemable Preferred Stock	Series F Cumulative Redeemable Preferred StockPreferred Stock	Series F Cumulative Redeemable Preferred StockCumulative dividends and distributions	Series F Cumulative Redeemable Preferred Stock	Common Stock	Additional Paid In Capital	Retained Earnings	Cumulative dividends and distributions	Noncontrolling Interest in Consolidated Joint Venture	Total
Beginning Balance at Dec. 31, 2016	$ 115,000,000			$ 75,000,000			$ 2,201,000	$ 2,596,620,000	$ 786,901,000	$ (1,092,952,000)	$ 49,062,000	$ 2,531,832,000
Beginning Balance (in shares) at Dec. 31, 2016	4,600,000			3,000,000			220,073,140
Increase (Decrease) in Stockholders' Equity
Net proceeds from sale of common stock							$ 47,000	74,744,000				74,791,000
Number of shares of common stock sold (in shares)							4,685,023
Deferred stock compensation, net							$ 4,000	852,000				856,000
Deferred stock compensation, net (in shares)							394,012
Common stock distributions and distributions payable										(22,279,000)		(22,279,000)
Preferred stock dividends and dividends payable		$ (3,996,000)	$ (3,996,000)		$ (2,418,000)	$ (2,418,000)
Distributions to noncontrolling interest											(3,362,000)	(3,362,000)
Net income									111,067,000		4,175,000	115,242,000
Ending Balance at Jun. 30, 2017	$ 115,000,000			$ 75,000,000			$ 2,252,000	$ 2,672,216,000	$ 897,968,000	$ (1,121,645,000)	$ 49,875,000	$ 2,690,666,000
Ending Balance (in shares) at Jun. 30, 2017	4,600,000			3,000,000			225,152,175

CONSOLIDATED STATEMENT OF EQUIT

CONSOLIDATED STATEMENT OF EQUITY (Parenthetical)	6 Months Ended
	Jun. 30, 2017$ / shares
Common stock distributions and distributions payable, per share (in dollars per share)	$ 0.10
Series E Cumulative Redeemable Preferred Stock
Preferred stock dividends declared (in dollars per share)	0.86875
Series F Cumulative Redeemable Preferred Stock
Preferred stock dividends declared (in dollars per share)	$ 0.80625

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 115,242	$ 66,952
Adjustments to reconcile net income to net cash provided by operating activities:
Bad debt expense	310	309
Gain on sale of assets, net	(45,750)	(18,234)
Loss on extinguishment of debt	4	259
Loss on derivatives, net	349	9,184
Depreciation	79,029	79,119
Amortization of franchise fees and other intangibles	1,624	1,750
Amortization of deferred financing fees	1,157	1,104
Amortization of deferred stock compensation	4,340	4,077
Changes in operating assets and liabilities:
Restricted cash	4,009	15,759
Accounts receivable	(6,844)	(14,831)
Inventories	22	84
Prepaid expenses and other assets	2,804	2,362
Accounts payable and other liabilities	3,403	6,016
Accrued payroll and employee benefits	(5,416)	(4,759)
Net cash provided by operating activities	154,283	149,151
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales of assets	150,155	41,171
Restricted cash - replacement reserve	(2,501)	(1,914)
Acquisition deposit	(7,000)
Acquisition of air rights		(2,447)
Renovations and additions to hotel properties	(59,499)	(100,034)
Payment for interest rate derivative	(19)
Net cash provided by (used in) investing activities	81,136	(63,224)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from preferred stock offerings		190,000
Payment of preferred stock offering costs		(6,640)
Redemption of preferred stock		(115,000)
Proceeds from common stock offerings	76,218
Payment of common stock offering costs	(1,427)
Repurchase of common stock for employee withholding obligations	(3,793)	(2,641)
Proceeds from notes payable	240,000	100,000
Payments on notes payable	(181,186)	(193,446)
Payments of costs related to extinguishment of notes payable		(153)
Payments of deferred financing costs	(13)	(77)
Dividends and distributions paid	(134,075)	(199,555)
Distributions to noncontrolling interest	(3,362)	(2,800)
Net cash used in financing activities	(7,638)	(230,312)
Net increase (decrease) in cash and cash equivalents	227,781	(144,385)
Cash and cash equivalents, beginning of period	369,537	499,067
Cash and cash equivalents, end of period	597,318	354,682
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest	17,686	25,809
Cash paid for income taxes	447	709
NONCASH INVESTING ACTIVITY
Increase (decrease) in accounts payable related to renovations and additions to hotel properties and other assets	(6,776)	3,072
Amortization of deferred stock compensation - construction activities	309	486
NONCASH FINANCING ACTIVITY
Preferred stock redemption charge		4,052
Issuance of common stock distributions		78,823
Dividends and distributions payable	$ 14,465	$ 13,898

Organization and Description of

Organization and Description of Business	6 Months Ended
	Jun. 30, 2017
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. 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, in transactions that are intended to generate qualifying income. As of June 30, 2017, the Company had interests in 26 hotels (the “26 hotels”), 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”) 11 Interstate Hotels & Resorts, Inc. 4 Highgate Hotels L.P. and an affiliate 3 Crestline Hotels & Resorts 2 Hilton Worldwide 2 Hyatt Corporation 2 Davidson Hotels & Resorts 1 HEI Hotels & Resorts 1 Total hotels held for investment 26

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2017
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, 2017 and December 31, 2016, and for the three and six months ended June 30, 2017 and 2016, include the accounts of the Company, the Operating Partnership, the TRS Lessee and their subsidiaries. All significant intercompany balances and transactions have been eliminated. If the Company determines that it has an interest in a variable interest entity within the meaning of the Consolidation Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), the Company will consolidate the entity when it is determined to be the primary beneficiary of the entity. Based on its review, the Company determined that all of its subsidiaries were properly consolidated as of June 30, 2017 and December 31, 2016, and for the three and six months ended June 30, 2017 and 2016. Noncontrolling interest at both June 30, 2017 and December 31, 2016 represents the outside 25.0% equity interest in the Hilton San Diego Bayfront, which the Company includes in its financial statements on a consolidated basis. 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, 2016, filed with the Securities and Exchange Commission on February 23, 2017. 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. 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, the net income per share for each class of stock (common stock and convertible preferred stock) is 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. Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are considered participating securities and shall be included in the computation of earnings per share pursuant to the two-class method. 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 Six Months Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 (unaudited) (unaudited) (unaudited) (unaudited) Numerator: Net income $ 51,415 $ 65,736 $ 115,242 $ 66,952 Income from consolidated joint venture attributable to noncontrolling interest (2,183) (1,655) (4,175) (3,305) Preferred stock dividends and redemption charge (3,207) (6,783) (6,414) (9,549) Distributions paid on unvested restricted stock compensation (60) (58) (120) (118) Undistributed income allocated to unvested restricted stock compensation (188) (252) (437) (170) Numerator for basic and diluted income attributable to common stockholders $ 45,777 $ 56,988 $ 104,096 $ Denominator: Weighted average basic and diluted common shares outstanding 220,130 215,385 219,614 214,136 Basic and diluted income attributable to common stockholders per common share $ 0.21 $ 0.26 $ 0.47 $ 0.25 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, 2017 and 2016, as their inclusion would have been anti-dilutive. New Accounting Standards and Accounting Changes In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “ Revenue from Contracts with Customers (Topic 606) ” (“ASU No. 2014-09”). The core principle of ASU No. 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity will need to apply a five-step model: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASU No. 2014-09 was originally to be effective during the first quarter of 2017; however, the FASB issued a one-year deferral so that it now becomes effective during the first quarter of 2018. ASU No. 2014-09 will require either a full retrospective approach or a modified retrospective approach, with early adoption permitted as of the original effective date. In March 2016, the FASB clarified the principal versus agent guidance in ASU No. 2014-09 with its issuance of Accounting Standards Update No. 2016-08, “ Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) ” (“ASU No. 2016-08”). In particular, ASU No. 2016-08 clarifies how an entity should identify the unit of accounting for the principal versus agent evaluation and how it should apply the control principle to certain types of arrangements, such as service transactions by explaining what a principal controls before the specified good or service is transferred to the customer. In addition, ASU No. 2016-08 reframes the indicators to focus on evidence that an entity is acting as a principal rather than as an agent. ASU No. 2016-08 will become effective, along with ASU No. 2014-09, during the first quarter of 2018. Similar to ASU No. 2014-09, ASU No. 2016-08 will require either a full retrospective approach or a modified retrospective approach, with early adoption permitted as of the original effective date. In May 2016, the FASB amended ASU No. 2014-09’s guidance on transition, collectability, noncash consideration and the presentation of sales and other similar taxes with its issuance of Accounting Standards Update No. 2016-12, “ Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients ” (“ASU No. 2016-12”). The amendments clarify that, for a contract to be considered completed at transition, all (or substantially all) of the revenue must have been recognized under legacy GAAP. This clarification is important because entities that use the modified retrospective transition approach need to apply the standard only to contracts that are not complete as of the date of initial application, and entities that use the full retrospective approach may apply certain practical expedients to completed contracts. In addition, ASU No. 2016-12 clarifies that an entity should consider the probability of collecting substantially all of the consideration to which it will be entitled in exchange for goods and services expected to be transferred to the customer rather than the total amount promised for all the goods or services in the contract. ASU No. 2016-12 also clarifies that an entity may consider its ability to manage its exposure to credit risk as part of the collectability assessment, as well as that the fair value of noncash consideration should be measured at contract inception when determining the transaction price. Finally, ASU No. 2016-12 allows an entity to make an accounting policy election to exclude from the transaction price certain types of taxes collected from a customer if it discloses that policy. ASU No. 2016-12 will become effective, along with ASU No. 2014-09, during the first quarter of 2018. Similar to ASU No. 2014-09, ASU No. 2016-12 will require either a full retrospective approach or a modified retrospective approach, with early adoption permitted as of the original effective date. The Company is in the process of evaluating the impact that ASU No. 2014-09, along with the related clarifications and amendments in ASU No. 2016-08 and ASU No. 2016-12, will have on its recognition of revenue included in its consolidated financial statements. While the Company is still evaluating the impact that the ASUs will have on accounting for the gain recognized upon the sale of a hotel, there is a possibility that the adoption of ASU No. 2014-09 will affect the timing of any gain recognition in the consolidated financial statements. For example, under current guidance, a gain on the sale of hotel properties with contingencies and some future involvement is deferred until all contingencies have been removed. Under the new guidance, however, the entire gain on sale may be recognized upon the close of escrow. The Company expects to adopt the new ASUs under the modified retrospective approach. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, “ Leases (Topic 842) ” (“ASU No. 2016-02”), which will require lessees to put most leases on their balance sheets but recognize expenses in the income statement in a manner similar to today’s accounting. The guidance also eliminates today’s real estate-specific provisions and changes the guidance on sale-leaseback transactions, initial direct costs and lease executory costs for all entities. For lessors, the standard modifies the classification criteria and the accounting for sales-type and direct financing leases. All entities will classify leases to determine how to recognize lease-related revenue and expense. Classification will continue to affect amounts that lessors record on the balance sheet. ASU No. 2016-02 will become effective during the first quarter of 2019, and will require a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. The Company is creating an inventory of its leases and is analyzing its current ground lease obligations. The Company is currently evaluating the impact that ASU No. 2016-02 will have on its consolidated financial statements, and, other than the inclusion of operating leases on the Company’s balance sheet, such effects have not yet been determined. In June 2016, the FASB issued Accounting Standards Update No. 2016-13, “ Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ” (“ASU No. 2016-13”), which will replace today’s “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward looking “expected loss” model that generally will result in the earlier recognition of allowances for losses. In addition, entities will have to disclose significantly more information, including information they use to track credit quality by year of origination for most financing receivables. ASU No. 2016-13 will become effective during the first quarter of 2020. ASU No. 2016-13 will require a modified retrospective approach, with early adoption permitted during the first quarter of 2019. The Company does not believe that the adoption of ASU No. 2016-13 will have a material impact on its consolidated financial statements. In September 2016, the FASB issued Accounting Standards Update No. 2016-15, “ Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) ” (“ASU No. 2016-15”), which clarifies how entities should classify certain cash receipts and cash payments on the statement of cash flows. ASU No. 2016-15 addresses certain issues where diversity in practice was identified. It amends existing guidance, which is principles based and often requires judgment to determine the appropriate classification of cash flows as operating, investing or financing activities. In addition, ASU No. 2016-15 clarifies how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flows. ASU No. 2016-15 will become effective during the first quarter of 2018, and will generally require a retrospective approach. Early adoption is permitted. The Company does not believe that the adoption of ASU No. 2016-15 will have a material effect on its consolidated financial statements. In November 2016, the FASB issued Accounting Standards Update No. 2016-18, “ Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force) ” (“ASU No. 2016-18”), which will require entities to show the changes in total cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. When cash, cash equivalents, restricted cash and restricted cash equivalents are presented in more than one line item on the balance sheet, the new guidance requires a reconciliation of the totals in the statement of cash flows to the related caption in the balance sheet. This reconciliation can be presented either on the face of the statement of cash flows or in the notes to the financial statements. ASU No. 2016-18 will become effective in the first quarter of 2018, and will require a retrospective approach. Early adoption in an interim period is permitted, but any adjustments must be reflected as of the beginning of the fiscal year that includes the interim period. Upon adoption of this standard, amounts included in restricted cash on the Company’s consolidated balance sheets will be included with cash and cash equivalents on its consolidated statements of cash flows. These amounts totaled $66.4 million and $67.9 million at June 30, 2017 and December 31, 2016, respectively. The adoption of this standard will not change the Company’s balance sheet presentation. In January 2017, the FASB issued Accounting Standards Update No. 2017-01, “ Business Combinations (Topic 805): Clarifying the Definition of a Business ” (“ASU No. 2017-01”), which changes the definition of a business to assist entities with evaluating when a set of transferred assets and activities is a business. Under the new guidance, an entity first determines whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If this threshold is met, the set of transferred assets and activities is not a business. If it is not met, the entity then evaluates whether the set meets the requirement that a business include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs. ASU No. 2017-01 will become effective in the first quarter of 2018, and the guidance is to be applied prospectively. Early adoption is permitted. Once adopted, the Company will be required to analyze future hotel acquisitions to determine if the transaction qualifies as the purchase of a business or an asset. Transaction costs associated with asset acquisitions will be capitalized, while the same costs associated with a business combination will continue to be expensed as incurred. In addition, asset acquisitions will not be subject to a measurement period, as are business combinations. Depending on the Company’s conclusion, ASU No. 2017-01 may have an effect on its consolidated financial statements. In January 2017, the FASB issued Accounting Standards Update No. 2017-04, “ Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ” (“ASU No. 2017-04”), which eliminates the requirement to calculate the implied fair value of goodwill (i.e., Step 2 of today’s goodwill impairment test) to measure a goodwill impairment charge. Under the new guidance, if a reporting unit’s carrying amount exceeds its fair value, an entity will record an impairment charge based on that difference. The impairment charge will be limited to the amount of goodwill allocated to that reporting unit. The standard does not change the guidance on completing Step 1 of the goodwill impairment test. An entity will still be able to perform today’s optional qualitative goodwill impairment assessment before determining whether to proceed to Step 1. ASU No. 2017-04 will become effective in the first quarter of 2019, and the guidance is to be applied prospectively. Early adoption is permitted. The Company does not believe that the adoption of ASU No. 2017-04 will have a material impact on its consolidated financial statements. In May 2017, the FASB issued Accounting Standards Update No. 2017-09, “ Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting ” (“ASU No. 2017-09”), which clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. The new guidance will allow companies to make certain changes to awards without accounting for them as modifications, but it does not change the accounting for modifications. Under ASU No. 2017-09, an entity will not apply modification accounting to a share-based payment award if all of the following are the same immediately before and after the change: the award’s fair value (or calculated or intrinsic value, if those measurement methods are used); the award’s vesting conditions; and the award’s classification as an equity or liability instrument. ASU No. 2017-09 will become effective in the first quarter of 2018, with early adoption permitted. The Company does not believe that the adoption of ASU No. 2017-09 will have an impact on its consolidated financial statements unless it changes the terms or conditions of its grants in the future. Noncontrolling Interest The Company’s consolidated financial statements include an entity in which the Company has a controlling financial interest. Noncontrolling interest is the portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. Such noncontrolling interest is 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 the less-than-wholly owned subsidiary is reported at the consolidated amount, including both the amounts attributable to the Company and the noncontrolling interest. Income or loss is allocated to the noncontrolling interest based on its weighted average ownership percentage for the applicable period. The consolidated statement of equity includes beginning balances, activity for the period and ending balances for each component of stockholders’ equity, noncontrolling interest and total equity. At both June 30, 2017 and December 31, 2016, the noncontrolling interest reported in the Company’s financial statements included the 25.0% outside ownership in the Hilton San Diego Bayfront. Segment Reporting The Company considers each of its hotels to be an operating segment, none of which meets the threshold for a separate reportable segment in accordance with the Segment Reporting Topic of the FASB ASC. Currently, the Company operates in one segment, hotel ownership.

Investment in Hotel Properties

Investment in Hotel Properties	6 Months Ended
	Jun. 30, 2017
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, 2017 2016 (unaudited) Land $ 529,401 $ 531,660 Buildings and improvements 3,163,757 3,135,806 Furniture, fixtures and equipment 522,623 512,372 Intangible assets 48,759 49,015 Franchise fees 980 1,021 Construction in process 34,805 65,449 Investment in hotel properties, gross 4,300,325 4,295,323 Accumulated depreciation and amortization (1,195,356) (1,137,104) Investment in hotel properties, net $ 3,104,969 $ 3,158,219

Disposals

Disposals	6 Months Ended
	Jun. 30, 2017
Disposals
Disposals	4. Disposals In June 2017, the Company sold the 199-room Marriott Park City located in Park City, Utah for net proceeds of $27.0 million. The Company recognized a net gain on the sale of $1.2 million. The sale did not represent a strategic shift that had a major impact on the Company’s business plan or its primary markets, and therefore, the sale of the hotel did not qualify as a discontinued operation. In February 2017, the Company sold the 444-room Fairmont Newport Beach located in Newport Beach, California for net proceeds of $122.8 million. The Company recognized a net gain on the sale of $44.3 million. The sale did not represent a strategic shift that had a major impact on the Company’s business plan or its primary markets, and therefore, the sale of the hotel did not qualify as a discontinued operation. The Company classified the assets and liabilities of the Fairmont Newport Beach as held for sale as of December 31, 2016 as follows (in thousands): December 31, 2016 Accounts receivable, net $ 452 Inventories 126 Prepaid expenses 386 Investment in hotel property, net 77,971 Other assets, net 178 Assets held for sale, net $ 79,113 Accounts payable and accrued expenses $ 781 Accrued payroll and employee benefits 751 Other current liabilities 1,473 Other liabilities 148 Liabilities of assets held for sale $ 3,153 The following table provides summary results of operations for the Marriott Park City and the Fairmont Newport Beach, as well as the Sheraton Cerritos that was sold during 2016, all of which are included in continuing operations (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (unaudited) (unaudited) (unaudited) (unaudited) Revenues $ 1,243 $ 11,667 $ 9,980 $ 27,440 Income (loss) before income taxes $ (500) $ 791 $ 2,466 $ 3,649 Gain on sale of assets $ 1,189 $ 18,223 $ 45,474 $ 18,223

Fair Value Measurements and Int

Fair Value Measurements and Interest Rate Derivatives	6 Months Ended
	Jun. 30, 2017
Fair Value Measurements and Interest Rate Derivatives
Fair Value Measurements and Interest Rate Derivatives	5. Fair Value Measurements and Interest Rate Derivatives Fair Value of Financial Instruments As of June 30, 2017 and December 31, 2016, 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 of June 30, 2017 and December 31, 2016, the only financial instruments that the Company measures at fair value are its interest rate derivatives, along with a life insurance policy and a related retirement benefit agreement. In accordance with the Fair Value Measurement and Disclosure Topic of the FASB ASC, the Company estimates the fair value of its interest rate derivatives using Level 2 measurements based on quotes obtained from the counterparties, which are based upon the consideration that would be required to terminate the agreements. Both the life insurance policy and the related retirement benefit agreement, which are for a former Company associate, are valued using Level 2 measurements. The following table presents the Company’s assets measured at fair value on a recurring and nonrecurring basis at June 30, 2017 and December 31, 2016 (in thousands): Fair Value Measurements at Reporting Date Total Level 1 Level 2 Level 3 June 30, 2017 (unaudited): Interest rate cap derivative $ 2 $ — $ 2 $ — Interest rate swap derivatives 1,417 — 1,417 — Life insurance policy (1) 647 — 647 — Total assets measured at fair value at June 30, 2017 $ 2,066 $ — $ 2,066 $ — December 31, 2016: Interest rate cap derivative $ — $ — $ — $ — Interest rate swap derivatives 1,749 — 1,749 — Life insurance policy (1) 861 — 861 — Total assets measured at fair value at December 31, 2016 $ 2,610 $ — $ 2,610 $ — (1) Includes the split life insurance policy for a former Company associate. 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 nonrecurring basis at June 30, 2017 and December 31, 2016 (in thousands): Fair Value Measurements at Reporting Date Total Level 1 Level 2 Level 3 June 30, 2017 (unaudited): Retirement benefit agreement (1) $ 647 $ — $ 647 $ — Total liabilities measured at fair value at June 30, 2017 $ 647 $ — $ 647 $ — December 31, 2016: Retirement benefit agreement (1) $ 861 $ — $ 861 $ — Total liabilities measured at fair value at December 31, 2016 $ 861 $ — $ 861 $ — (1) Includes the retirement benefit agreement for a former Company associate. The agreement calls for the balance of the retirement benefit to be paid out to the former associate in ten annual installments, beginning in 2011. As such, the Company has paid the former associate a total of $1.4 million through June 30, 2017, 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. Interest Rate Derivatives The Company’s interest rate derivatives, which are not designated as effective cash flow hedges, consisted of the following at June 30, 2017 (unaudited) and December 31, 2016 (in thousands): Estimated Fair Value Asset Strike / Capped Effective Maturity Notional June 30, December 31, Hedged Debt Type Rate Index Date Date Amount 2017 2016 Hilton San Diego Bayfront (1) Cap 4.250 % 1-Month LIBOR April 15, 2015 May 1, 2017 $ N/A $ N/A $ — Hilton San Diego Bayfront (1) Cap 4.250 % 1-Month LIBOR May 1, 2017 May 1, 2019 $ 110,504 2 N/A $85.0 million term loan (2) Swap 3.391 % 1-Month LIBOR October 29, 2015 September 2, 2022 $ 85,000 1,164 1,336 $100.0 million term loan (3) Swap 3.653 % 1-Month LIBOR January 29, 2016 January 31, 2023 $ 100,000 253 413 $ 1,419 $ 1,749 (1) In March 2017, the Company purchased a new interest rate cap agreement for $19,000 related to the loan secured by the Hilton San Diego Bayfront. The new agreement, whose terms are substantially the same as the terms under the expiring cap agreement, effectively replaced the expiring agreement on May 1, 2017. The fair values of both Hilton San Diego Bayfront cap agreements are included in other assets, net on the accompanying consolidated balance sheets. (2) The fair value of the $85.0 million term loan swap agreement is included in other assets, net on the Company’s consolidated balance sheets. The 1-month LIBOR rate was swapped to a fixed rate of 1.591%. (3) The fair value of the $100.0 million term loan swap agreement is included in other assets, net on the Company’s consolidated balance sheets. The 1-month LIBOR rate was swapped to a fixed rate of 1.853%. Noncash changes in the fair values of the Company’s interest rate derivatives resulted in increases to interest expense for the three and six months ended June 30, 2017 and 2016 as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (unaudited) (unaudited) (unaudited) (unaudited) Loss on derivatives, net $ 1,006 $ 2,782 $ 349 $ 9,184 Fair Value of Debt As of June 30, 2017 and December 31, 2016, 77.8% and 76.2%, respectively, of the Company’s outstanding debt had fixed interest rates, including the effects of interest rate swap agreements. The Company’s principal value of its consolidated debt totaled $994.8 million and $935.9 million as of June 30, 2017 and December 31, 2016, respectively. Using Level 3 measurements, the Company estimates that the fair market value of its debt totaled $992.6 million and $930.7 million as of June 30, 2017 and December 31, 2016, respectively.

Other Assets

Other Assets	6 Months Ended
	Jun. 30, 2017
Other Assets
Other Assets	6. Other Assets Other assets, net consisted of the following (in thousands): June 30, December 31, 2017 2016 (unaudited) Property and equipment, net $ 607 $ 779 Goodwill 990 990 Acquisition deposit 7,000 — Deferred expense on straight-lined third-party tenant leases 2,896 2,876 Interest rate derivatives 1,419 1,749 Other receivables 1,045 1,673 Other 1,093 1,322 Total other assets net $ 15,050 $ 9,389 The property and equipment, net noted above consisted of the following (in thousands): June 30, December 31, 2017 2016 (unaudited) Cost basis $ 10,875 $ 10,807 Accumulated depreciation (10,268) (10,028) Property and equipment, net $ 607 $ 779

Notes Payable

Notes Payable	6 Months Ended
	Jun. 30, 2017
Notes Payable
Notes Payable	7. Notes Payable Notes payable consisted of the following (in thousands): June 30, December 31, 2017 2016 (unaudited) Notes payable requiring payments of interest and principal, with fixed rates ranging from 4.12% to 5.95%; maturing at dates ranging from November 2020 through January 2025. The notes are collateralized by first deeds of trust on four hotel properties at June 30, 2017, and five hotel properties at December 31, 2016. $ 349,023 $ 528,604 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. 220,736 222,340 Unsecured term loan requiring payments of interest only, with a blended interest rate based on a pricing grid with a range of 180 to 255 basis points over LIBOR, depending on the Company's leverage ratios. LIBOR has been swapped to a fixed rate of 1.591%, resulting in an effective interest rate of 3.391% based on the Company's current leverage. Matures in September 2022. 85,000 85,000 Unsecured term loan requiring payments of interest only, with a blended interest rate based on a pricing grid with a range of 180 to 255 basis points over LIBOR, depending on the Company's leverage ratios. LIBOR has been swapped to a fixed rate of 1.853%, resulting in an effective interest rate of 3.653% based on the Company's current leverage. Matures in January 2023. 100,000 100,000 Unsecured Senior Notes requiring semi-annual payments of interest only, bearing interest at 4.69%; maturing in January 2026. 120,000 — Unsecured Senior Notes requiring semi-annual payments of interest only, bearing interest at 4.79%; maturing in January 2028. 120,000 — Total notes payable $ 994,759 $ 935,944 Current portion of notes payable $ 10,292 $ 186,034 Less: current portion of deferred financing fees (1,269) (1,105) Carrying value of current portion of notes payable $ 9,023 $ 184,929 Notes payable, less current portion $ 984,467 $ 749,910 Less: long-term portion of deferred financing fees (4,401) (3,536) Carrying value of notes payable, less current portion $ 980,066 $ 746,374 Notes Payable Transactions - 2017 In January 2017, the Company received proceeds of $240.0 million in a private placement of senior unsecured notes. The private placement consisted of $120.0 million of notes bearing interest at a fixed rate of 4.69%, maturing in January 2026 (the “Series A Senior Notes”), and $120.0 million of notes bearing interest at a fixed rate of 4.79%, maturing in January 2028 (the “Series B Senior Notes,” together the “Senior Notes”). In January 2017, the Company used proceeds received from the Senior Notes to repay the loan secured by the Marriott Boston Long Wharf, which had a balance of $176.0 million and an interest rate of 5.58%. The Marriott Boston Long Wharf loan was scheduled to mature in April 2017, and was available to be repaid without penalty in January 2017. Interest Expense Total interest incurred and expensed on the notes payable was as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (unaudited) (unaudited) (unaudited) (unaudited) Interest expense on debt and capital lease obligations $ 11,499 $ 12,541 $ 22,827 $ 25,594 Loss on derivatives, net 1,006 2,782 349 9,184 Amortization of deferred financing fees 579 549 1,157 1,104 Total interest expense $ 13,084 $ 15,872 $ 24,333 $ 35,882

Other Current Liabilities and O

Other Current Liabilities and Other Liabilities	6 Months Ended
	Jun. 30, 2017
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, 2017 2016 (unaudited) Property, sales and use taxes payable $ 19,164 $ 16,965 Income tax payable 180 211 Accrued interest 6,889 1,996 Advance deposits 13,994 14,505 Management fees payable 1,130 1,645 Other 4,754 4,547 Total other current liabilities $ 46,111 $ 39,869 Other liabilities consisted of the following (in thousands): June 30, December 31, 2017 2016 (unaudited) Deferred gain on sale of asset $ 7,000 $ 7,000 Deferred revenue 6,018 6,045 Deferred rent 19,681 19,807 Deferred incentive management fees 433 — Other 3,499 3,798 Total other liabilities $ 36,631 $ 36,650

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2017
Stockholders' Equity
Stockholders' Equity	9. Stockholders’ Equity Series E Cumulative Redeemable Preferred Stock In March 2016, the Company issued 4,600,000 shares of its 6.95% Series E Cumulative Redeemable Preferred Stock (“Series E preferred stock”) with a liquidation preference of $25.00 per share for gross proceeds of $115.0 million. In conjunction with the offering, the Company incurred $4.0 million in preferred offering costs. On or after March 11, 2021, the Series E 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. Series F Cumulative Redeemable Preferred Stock In May 2016, the Company issued 3,000,000 shares of its 6.45% Series F Cumulative Redeemable Preferred Stock (“Series F preferred stock) with a liquidation preference of $25.00 per share for gross proceeds of $75.0 million. In conjunction with the offering, the Company incurred $2.6 million in preferred offering costs. On or after May 17, 2021, the Series F 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 2017, the Company entered into separate “At the Market” Agreements (the “ATM Agreements”) with each of Merrill Lynch, Pierce, Fenner & Smith Incorporated, J.P. Morgan Securities LLC and Wells Fargo Securities, LLC . In accordance with the terms of the ATM Agreements, the Company may from time to time offer and sell shares of its common stock having an aggregate offering price of up to $300.0 million. During the first six months of 2017, the Company received gross proceeds of $76.2 million, and paid $1.4 million in costs, from the issuance of 4,685,023 shares of its common stock in connection with the ATM Agreements. As of June 30, 2017, the Company has $223.8 million available for sale under the ATM Agreements. In February 2017, the Company’s board of directors authorized a share repurchase plan to acquire up to $300.0 million of the Company’s common and preferred stock. As of June 30, 2017, no shares of either the Company’s common or preferred stock have been repurchased. Future purchases will depend on various factors, including the Company’s capital needs, as well as the Company’s common and preferred stock price.

Long-Term Incentive Plan

Long-Term Incentive Plan	6 Months Ended
	Jun. 30, 2017
Long-Term Incentive Plan
Long-Term Incentive Plan	10. Long-Term Incentive Plan Stock Grants Restricted shares granted pursuant to the Company’s 2004 Long-Term Incentive Plan, as amended and restated May 1, 2014, generally vest over periods from three to five years from the date of grant. Compensation expense related to awards of restricted shares are measured at fair value on the date of grant and amortized over the relevant requisite service period or derived service period. In accordance with the Compensation Topic of the FASB ASC, the Company has elected to account for forfeitures as they occur. The Company’s amortization expense and forfeitures related to restricted shares for the three and six months ended June 30, 2017 and 2016 were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (unaudited) (unaudited) (unaudited) (unaudited) Amortization expense, including forfeitures $ 2,591 $ 2,463 $ 4,340 $ 4,077 In addition, the Company capitalizes compensation costs related to all restricted shares granted to certain employees who work on the design and construction of its hotels. During both the three months ended June 30, 2017 and 2016, these capitalized costs totaled $0.2 million. During the six months ended June 30, 2017 and 2016, these capitalized costs totaled $0.3 million and $0.5 million, respectively. Stock Options 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 on April 27, 2018. The exercise price of the Options is $17.71 per share.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2017
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 1.75% 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 management fees, net of key money incentives received from third-party hotel managers, along with incentive management fees incurred by the Company during the three and six months ended June 30, 2017 and 2016 were included in other property-level expenses on the Company’s consolidated statements of operations and comprehensive income as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (unaudited) (unaudited) (unaudited) (unaudited) Basic management fees $ 8,942 $ 8,953 $ 16,837 $ 16,620 Incentive management fees 1,800 1,490 4,353 3,194 Total basic and incentive management fees $ 10,742 $ 10,443 $ 21,190 $ 19,814 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 fees incurred by the Company during the three and six months ended June 30, 2017 and 2016 were included in franchise costs on the Company’s consolidated statements of operations and comprehensive income as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (unaudited) (unaudited) (unaudited) (unaudited) Franchise assessments (1) $ 7,175 $ 7,067 $ 13,102 $ 12,880 Franchise royalties 2,706 2,831 4,834 5,114 Total franchise costs $ 9,881 $ 9,898 $ 17,936 $ 17,994 (1) Includes advertising, reservation and frequent guest club assessments. Renovation and Construction Commitments At June 30, 2017, the Company had various contracts outstanding with third parties in connection with the renovation and repositioning of certain of its hotel properties. The remaining commitments under these contracts at June 30, 2017 totaled $50.3 million. Capital Leases The Hyatt Centric 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 capital lease asset was included in investment in hotel properties, net on the Company’s consolidated balance sheets as follows (in thousands): June 30, December 31, 2017 2016 (unaudited) Gross capital lease asset - buildings and improvements $ 58,799 $ 58,799 Accumulated depreciation (7,472) (6,738) Net capital lease asset - buildings and improvements $ 51,327 $ 52,061 Future minimum lease payments under the Company’s capital lease together with the present value of the net minimum lease payments as of June 30, 2017 are as follows (in thousands): 2017 $ 1,403 2018 1,403 2019 1,403 2020 1,403 2021 1,403 Thereafter 105,908 Total minimum lease payments (1) 112,923 Less: Amount representing interest (2) (97,348) Present value of net minimum lease payments (3) $ 15,575 (1) Minimum lease payments do not include percentage rent which may be paid under the Hyatt Centric Chicago Magnificent Mile building lease on the basis of 4.0% of the hotel’s gross room revenues over a certain threshold. No percentage rent was due during the three and six months ended June 30, 2017 and 2016. (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, 2017 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, 2017 and 2016 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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 (unaudited) (unaudited) (unaudited) (unaudited) Minimum rent, including straight-line adjustments $ 2,340 $ 2,210 $ 4,680 $ 4,606 Percentage rent (1) 1,755 2,465 3,340 4,525 Total $ 4,095 $ 4,675 $ 8,020 $ 9,131 (1) Several of the Company’s hotels pay percentage rent, which is calculated on operating revenues above certain thresholds. Rent expense incurred pursuant to a lease on the corporate facility totaled $0.1 million for both the three months ended June 30, 2017 and 2016, and $0.2 million for both the six months ended June 30, 2017 and 2016, and is included in corporate overhead expense. Concentration of Risk The concentration of the Company’s hotels in California, 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, 2017, 16 of the Company’s 26 hotels were concentrated in California, Illinois, Massachusetts and the greater Washington DC area as follows: Greater Washington DC California Illinois Massachusetts Area (unaudited) (unaudited) (unaudited) (unaudited) Number of hotels 7 3 3 3 Percentage of total rooms % % % % Percentage of total consolidated revenue during the past 12 months % % % % 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, 2017, the Company had $0.5 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, 2017. The Company is subject to various claims, lawsuits and legal proceedings, including routine litigation arising in the ordinary course of business, regarding the operation of its hotels and Company matters. While it is not possible to ascertain the ultimate outcome of such matters, the Company believes that the aggregate amount of such liabilities, if any, in excess of amounts covered by insurance will not have a material adverse impact on its financial condition or results of operations. The outcome of claims, lawsuits and legal proceedings brought against the Company, however, is subject to significant uncertainties.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2017
Subsequent Events
Subsequent Events	12. Subsequent Events During the first week of July 2017, the Company received gross proceeds of $3.2 million, and paid $0.1 million in costs, from the issuance of 191,832 shares of its common stock in connection with the ATM Agreements. The shares were sold at the end of June, but due to customary settlement periods, the shares were not delivered until July. As of July 31, 2017, the Company has $220.6 million available for sale under the ATM Agreements. On July 25, 2017, the Company acquired the 175-room Oceans Edge Hotel & Marina located in Key West, Florida for a contractual purchase price of $175.0 million. T he newly constructed and recently opened fee simple hotel also includes a marina, wet and dry boat slips and a marina fuel station. The Company funded the acquisition with available cash on hand, including proceeds from the recent sales of the Marriott Park City and the Fairmont Newport Beach, as well as net proceeds received from the Company’s recent equity issuances under its ATM Agreements. The Company is in the process of assessing the fair value of the acquired tangible assets, and any applicable intangible assets, and liabilities for this business combination.

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2017
Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements as of June 30, 2017 and December 31, 2016, and for the three and six months ended June 30, 2017 and 2016, include the accounts of the Company, the Operating Partnership, the TRS Lessee and their subsidiaries. All significant intercompany balances and transactions have been eliminated. If the Company determines that it has an interest in a variable interest entity within the meaning of the Consolidation Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), the Company will consolidate the entity when it is determined to be the primary beneficiary of the entity. Based on its review, the Company determined that all of its subsidiaries were properly consolidated as of June 30, 2017 and December 31, 2016, and for the three and six months ended June 30, 2017 and 2016. Noncontrolling interest at both June 30, 2017 and December 31, 2016 represents the outside 25.0% equity interest in the Hilton San Diego Bayfront, which the Company includes in its financial statements on a consolidated basis. 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, 2016, filed with the Securities and Exchange Commission on February 23, 2017. 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.
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, the net income per share for each class of stock (common stock and convertible preferred stock) is 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. Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are considered participating securities and shall be included in the computation of earnings per share pursuant to the two-class method. 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 Six Months Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 (unaudited) (unaudited) (unaudited) (unaudited) Numerator: Net income $ 51,415 $ 65,736 $ 115,242 $ 66,952 Income from consolidated joint venture attributable to noncontrolling interest (2,183) (1,655) (4,175) (3,305) Preferred stock dividends and redemption charge (3,207) (6,783) (6,414) (9,549) Distributions paid on unvested restricted stock compensation (60) (58) (120) (118) Undistributed income allocated to unvested restricted stock compensation (188) (252) (437) (170) Numerator for basic and diluted income attributable to common stockholders $ 45,777 $ 56,988 $ 104,096 $ Denominator: Weighted average basic and diluted common shares outstanding 220,130 215,385 219,614 214,136 Basic and diluted income attributable to common stockholders per common share $ 0.21 $ 0.26 $ 0.47 $ 0.25 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, 2017 and 2016, as their inclusion would have been anti-dilutive.
New Accounting Standards and Accounting Changes	New Accounting Standards and Accounting Changes In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “ Revenue from Contracts with Customers (Topic 606) ” (“ASU No. 2014-09”). The core principle of ASU No. 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity will need to apply a five-step model: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASU No. 2014-09 was originally to be effective during the first quarter of 2017; however, the FASB issued a one-year deferral so that it now becomes effective during the first quarter of 2018. ASU No. 2014-09 will require either a full retrospective approach or a modified retrospective approach, with early adoption permitted as of the original effective date. In March 2016, the FASB clarified the principal versus agent guidance in ASU No. 2014-09 with its issuance of Accounting Standards Update No. 2016-08, “ Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) ” (“ASU No. 2016-08”). In particular, ASU No. 2016-08 clarifies how an entity should identify the unit of accounting for the principal versus agent evaluation and how it should apply the control principle to certain types of arrangements, such as service transactions by explaining what a principal controls before the specified good or service is transferred to the customer. In addition, ASU No. 2016-08 reframes the indicators to focus on evidence that an entity is acting as a principal rather than as an agent. ASU No. 2016-08 will become effective, along with ASU No. 2014-09, during the first quarter of 2018. Similar to ASU No. 2014-09, ASU No. 2016-08 will require either a full retrospective approach or a modified retrospective approach, with early adoption permitted as of the original effective date. In May 2016, the FASB amended ASU No. 2014-09’s guidance on transition, collectability, noncash consideration and the presentation of sales and other similar taxes with its issuance of Accounting Standards Update No. 2016-12, “ Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients ” (“ASU No. 2016-12”). The amendments clarify that, for a contract to be considered completed at transition, all (or substantially all) of the revenue must have been recognized under legacy GAAP. This clarification is important because entities that use the modified retrospective transition approach need to apply the standard only to contracts that are not complete as of the date of initial application, and entities that use the full retrospective approach may apply certain practical expedients to completed contracts. In addition, ASU No. 2016-12 clarifies that an entity should consider the probability of collecting substantially all of the consideration to which it will be entitled in exchange for goods and services expected to be transferred to the customer rather than the total amount promised for all the goods or services in the contract. ASU No. 2016-12 also clarifies that an entity may consider its ability to manage its exposure to credit risk as part of the collectability assessment, as well as that the fair value of noncash consideration should be measured at contract inception when determining the transaction price. Finally, ASU No. 2016-12 allows an entity to make an accounting policy election to exclude from the transaction price certain types of taxes collected from a customer if it discloses that policy. ASU No. 2016-12 will become effective, along with ASU No. 2014-09, during the first quarter of 2018. Similar to ASU No. 2014-09, ASU No. 2016-12 will require either a full retrospective approach or a modified retrospective approach, with early adoption permitted as of the original effective date. The Company is in the process of evaluating the impact that ASU No. 2014-09, along with the related clarifications and amendments in ASU No. 2016-08 and ASU No. 2016-12, will have on its recognition of revenue included in its consolidated financial statements. While the Company is still evaluating the impact that the ASUs will have on accounting for the gain recognized upon the sale of a hotel, there is a possibility that the adoption of ASU No. 2014-09 will affect the timing of any gain recognition in the consolidated financial statements. For example, under current guidance, a gain on the sale of hotel properties with contingencies and some future involvement is deferred until all contingencies have been removed. Under the new guidance, however, the entire gain on sale may be recognized upon the close of escrow. The Company expects to adopt the new ASUs under the modified retrospective approach. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, “ Leases (Topic 842) ” (“ASU No. 2016-02”), which will require lessees to put most leases on their balance sheets but recognize expenses in the income statement in a manner similar to today’s accounting. The guidance also eliminates today’s real estate-specific provisions and changes the guidance on sale-leaseback transactions, initial direct costs and lease executory costs for all entities. For lessors, the standard modifies the classification criteria and the accounting for sales-type and direct financing leases. All entities will classify leases to determine how to recognize lease-related revenue and expense. Classification will continue to affect amounts that lessors record on the balance sheet. ASU No. 2016-02 will become effective during the first quarter of 2019, and will require a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. The Company is creating an inventory of its leases and is analyzing its current ground lease obligations. The Company is currently evaluating the impact that ASU No. 2016-02 will have on its consolidated financial statements, and, other than the inclusion of operating leases on the Company’s balance sheet, such effects have not yet been determined. In June 2016, the FASB issued Accounting Standards Update No. 2016-13, “ Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ” (“ASU No. 2016-13”), which will replace today’s “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward looking “expected loss” model that generally will result in the earlier recognition of allowances for losses. In addition, entities will have to disclose significantly more information, including information they use to track credit quality by year of origination for most financing receivables. ASU No. 2016-13 will become effective during the first quarter of 2020. ASU No. 2016-13 will require a modified retrospective approach, with early adoption permitted during the first quarter of 2019. The Company does not believe that the adoption of ASU No. 2016-13 will have a material impact on its consolidated financial statements. In September 2016, the FASB issued Accounting Standards Update No. 2016-15, “ Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) ” (“ASU No. 2016-15”), which clarifies how entities should classify certain cash receipts and cash payments on the statement of cash flows. ASU No. 2016-15 addresses certain issues where diversity in practice was identified. It amends existing guidance, which is principles based and often requires judgment to determine the appropriate classification of cash flows as operating, investing or financing activities. In addition, ASU No. 2016-15 clarifies how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flows. ASU No. 2016-15 will become effective during the first quarter of 2018, and will generally require a retrospective approach. Early adoption is permitted. The Company does not believe that the adoption of ASU No. 2016-15 will have a material effect on its consolidated financial statements. In November 2016, the FASB issued Accounting Standards Update No. 2016-18, “ Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force) ” (“ASU No. 2016-18”), which will require entities to show the changes in total cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. When cash, cash equivalents, restricted cash and restricted cash equivalents are presented in more than one line item on the balance sheet, the new guidance requires a reconciliation of the totals in the statement of cash flows to the related caption in the balance sheet. This reconciliation can be presented either on the face of the statement of cash flows or in the notes to the financial statements. ASU No. 2016-18 will become effective in the first quarter of 2018, and will require a retrospective approach. Early adoption in an interim period is permitted, but any adjustments must be reflected as of the beginning of the fiscal year that includes the interim period. Upon adoption of this standard, amounts included in restricted cash on the Company’s consolidated balance sheets will be included with cash and cash equivalents on its consolidated statements of cash flows. These amounts totaled $66.4 million and $67.9 million at June 30, 2017 and December 31, 2016, respectively. The adoption of this standard will not change the Company’s balance sheet presentation. In January 2017, the FASB issued Accounting Standards Update No. 2017-01, “ Business Combinations (Topic 805): Clarifying the Definition of a Business ” (“ASU No. 2017-01”), which changes the definition of a business to assist entities with evaluating when a set of transferred assets and activities is a business. Under the new guidance, an entity first determines whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If this threshold is met, the set of transferred assets and activities is not a business. If it is not met, the entity then evaluates whether the set meets the requirement that a business include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs. ASU No. 2017-01 will become effective in the first quarter of 2018, and the guidance is to be applied prospectively. Early adoption is permitted. Once adopted, the Company will be required to analyze future hotel acquisitions to determine if the transaction qualifies as the purchase of a business or an asset. Transaction costs associated with asset acquisitions will be capitalized, while the same costs associated with a business combination will continue to be expensed as incurred. In addition, asset acquisitions will not be subject to a measurement period, as are business combinations. Depending on the Company’s conclusion, ASU No. 2017-01 may have an effect on its consolidated financial statements. In January 2017, the FASB issued Accounting Standards Update No. 2017-04, “ Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ” (“ASU No. 2017-04”), which eliminates the requirement to calculate the implied fair value of goodwill (i.e., Step 2 of today’s goodwill impairment test) to measure a goodwill impairment charge. Under the new guidance, if a reporting unit’s carrying amount exceeds its fair value, an entity will record an impairment charge based on that difference. The impairment charge will be limited to the amount of goodwill allocated to that reporting unit. The standard does not change the guidance on completing Step 1 of the goodwill impairment test. An entity will still be able to perform today’s optional qualitative goodwill impairment assessment before determining whether to proceed to Step 1. ASU No. 2017-04 will become effective in the first quarter of 2019, and the guidance is to be applied prospectively. Early adoption is permitted. The Company does not believe that the adoption of ASU No. 2017-04 will have a material impact on its consolidated financial statements. In May 2017, the FASB issued Accounting Standards Update No. 2017-09, “ Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting ” (“ASU No. 2017-09”), which clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. The new guidance will allow companies to make certain changes to awards without accounting for them as modifications, but it does not change the accounting for modifications. Under ASU No. 2017-09, an entity will not apply modification accounting to a share-based payment award if all of the following are the same immediately before and after the change: the award’s fair value (or calculated or intrinsic value, if those measurement methods are used); the award’s vesting conditions; and the award’s classification as an equity or liability instrument. ASU No. 2017-09 will become effective in the first quarter of 2018, with early adoption permitted. The Company does not believe that the adoption of ASU No. 2017-09 will have an impact on its consolidated financial statements unless it changes the terms or conditions of its grants in the future.
Noncontrolling Interest	Noncontrolling Interest The Company’s consolidated financial statements include an entity in which the Company has a controlling financial interest. Noncontrolling interest is the portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. Such noncontrolling interest is 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 the less-than-wholly owned subsidiary is reported at the consolidated amount, including both the amounts attributable to the Company and the noncontrolling interest. Income or loss is allocated to the noncontrolling interest based on its weighted average ownership percentage for the applicable period. The consolidated statement of equity includes beginning balances, activity for the period and ending balances for each component of stockholders’ equity, noncontrolling interest and total equity. At both June 30, 2017 and December 31, 2016, the noncontrolling interest reported in the Company’s financial statements included the 25.0% outside ownership in the Hilton San Diego Bayfront.
Segment Reporting	Segment Reporting The Company considers each of its hotels to be an operating segment, none of which meets the threshold for a separate reportable segment in accordance with the Segment Reporting Topic of the FASB ASC. Currently, the Company operates in one segment, hotel ownership.

Organization and Description 21

Organization and Description of Business (Tables)	6 Months Ended
	Jun. 30, 2017
Organization and Description of Business
Schedule of number of hotels managed by each third-party manager	As of June 30, 2017, the Company had interests in 26 hotels (the “26 hotels”), 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”) 11 Interstate Hotels & Resorts, Inc. 4 Highgate Hotels L.P. and an affiliate 3 Crestline Hotels & Resorts 2 Hilton Worldwide 2 Hyatt Corporation 2 Davidson Hotels & Resorts 1 HEI Hotels & Resorts 1 Total hotels held for investment 26

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2017
Summary of Significant Accounting Policies
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 Six Months Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 (unaudited) (unaudited) (unaudited) (unaudited) Numerator: Net income $ 51,415 $ 65,736 $ 115,242 $ 66,952 Income from consolidated joint venture attributable to noncontrolling interest (2,183) (1,655) (4,175) (3,305) Preferred stock dividends and redemption charge (3,207) (6,783) (6,414) (9,549) Distributions paid on unvested restricted stock compensation (60) (58) (120) (118) Undistributed income allocated to unvested restricted stock compensation (188) (252) (437) (170) Numerator for basic and diluted income attributable to common stockholders $ 45,777 $ 56,988 $ 104,096 $ Denominator: Weighted average basic and diluted common shares outstanding 220,130 215,385 219,614 214,136 Basic and diluted income attributable to common stockholders per common share $ 0.21 $ 0.26 $ 0.47 $ 0.25

Investment in Hotel Properties

Investment in Hotel Properties (Tables)	6 Months Ended
	Jun. 30, 2017
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, 2017 2016 (unaudited) Land $ 529,401 $ 531,660 Buildings and improvements 3,163,757 3,135,806 Furniture, fixtures and equipment 522,623 512,372 Intangible assets 48,759 49,015 Franchise fees 980 1,021 Construction in process 34,805 65,449 Investment in hotel properties, gross 4,300,325 4,295,323 Accumulated depreciation and amortization (1,195,356) (1,137,104) Investment in hotel properties, net $ 3,104,969 $ 3,158,219

Disposals (Tables)

Disposals (Tables)	6 Months Ended
	Jun. 30, 2017
Disposals
Schedule of amounts held for sale	The Company classified the assets and liabilities of the Fairmont Newport Beach as held for sale as of December 31, 2016 as follows (in thousands): December 31, 2016 Accounts receivable, net $ 452 Inventories 126 Prepaid expenses 386 Investment in hotel property, net 77,971 Other assets, net 178 Assets held for sale, net $ 79,113 Accounts payable and accrued expenses $ 781 Accrued payroll and employee benefits 751 Other current liabilities 1,473 Other liabilities 148 Liabilities of assets held for sale $ 3,153
Schedule of operating results for sold entities	The following table provides summary results of operations for the Marriott Park City and the Fairmont Newport Beach, as well as the Sheraton Cerritos that was sold during 2016, all of which are included in continuing operations (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (unaudited) (unaudited) (unaudited) (unaudited) Revenues $ 1,243 $ 11,667 $ 9,980 $ 27,440 Income (loss) before income taxes $ (500) $ 791 $ 2,466 $ 3,649 Gain on sale of assets $ 1,189 $ 18,223 $ 45,474 $ 18,223

Fair Value Measurements and I25

Fair Value Measurements and Interest Rate Derivatives (Tables)	6 Months Ended
	Jun. 30, 2017
Fair Value Measurements and Interest Rate Derivatives
Schedule of assets measured at fair value on a recurring and nonrecurring basis	The following table presents the Company’s assets measured at fair value on a recurring and nonrecurring basis at June 30, 2017 and December 31, 2016 (in thousands): Fair Value Measurements at Reporting Date Total Level 1 Level 2 Level 3 June 30, 2017 (unaudited): Interest rate cap derivative $ 2 $ — $ 2 $ — Interest rate swap derivatives 1,417 — 1,417 — Life insurance policy (1) 647 — 647 — Total assets measured at fair value at June 30, 2017 $ 2,066 $ — $ 2,066 $ — December 31, 2016: Interest rate cap derivative $ — $ — $ — $ — Interest rate swap derivatives 1,749 — 1,749 — Life insurance policy (1) 861 — 861 — Total assets measured at fair value at December 31, 2016 $ 2,610 $ — $ 2,610 $ — (1) Includes the split life insurance policy for a former Company associate. 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 nonrecurring basis	The following table presents the Company’s liabilities measured at fair value on a recurring and nonrecurring basis at June 30, 2017 and December 31, 2016 (in thousands): Fair Value Measurements at Reporting Date Total Level 1 Level 2 Level 3 June 30, 2017 (unaudited): Retirement benefit agreement (1) $ 647 $ — $ 647 $ — Total liabilities measured at fair value at June 30, 2017 $ 647 $ — $ 647 $ — December 31, 2016: Retirement benefit agreement (1) $ 861 $ — $ 861 $ — Total liabilities measured at fair value at December 31, 2016 $ 861 $ — $ 861 $ — (1) Includes the retirement benefit agreement for a former Company associate. The agreement calls for the balance of the retirement benefit to be paid out to the former associate in ten annual installments, beginning in 2011. As such, the Company has paid the former associate a total of $1.4 million through June 30, 2017, 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 interest rate derivatives	The Company’s interest rate derivatives, which are not designated as effective cash flow hedges, consisted of the following at June 30, 2017 (unaudited) and December 31, 2016 (in thousands): Estimated Fair Value Asset Strike / Capped Effective Maturity Notional June 30, December 31, Hedged Debt Type Rate Index Date Date Amount 2017 2016 Hilton San Diego Bayfront (1) Cap 4.250 % 1-Month LIBOR April 15, 2015 May 1, 2017 $ N/A $ N/A $ — Hilton San Diego Bayfront (1) Cap 4.250 % 1-Month LIBOR May 1, 2017 May 1, 2019 $ 110,504 2 N/A $85.0 million term loan (2) Swap 3.391 % 1-Month LIBOR October 29, 2015 September 2, 2022 $ 85,000 1,164 1,336 $100.0 million term loan (3) Swap 3.653 % 1-Month LIBOR January 29, 2016 January 31, 2023 $ 100,000 253 413 $ 1,419 $ 1,749 (1) In March 2017, the Company purchased a new interest rate cap agreement for $19,000 related to the loan secured by the Hilton San Diego Bayfront. The new agreement, whose terms are substantially the same as the terms under the expiring cap agreement, effectively replaced the expiring agreement on May 1, 2017. The fair values of both Hilton San Diego Bayfront cap agreements are included in other assets, net on the accompanying consolidated balance sheets. (2) The fair value of the $85.0 million term loan swap agreement is included in other assets, net on the Company’s consolidated balance sheets. The 1-month LIBOR rate was swapped to a fixed rate of 1.591%. (3) The fair value of the $100.0 million term loan swap agreement is included in other assets, net on the Company’s consolidated balance sheets. The 1-month LIBOR rate was swapped to a fixed rate of 1.853%.
Schedule of changes in fair value of interest rate derivatives	Noncash changes in the fair values of the Company’s interest rate derivatives resulted in increases to interest expense for the three and six months ended June 30, 2017 and 2016 as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (unaudited) (unaudited) (unaudited) (unaudited) Loss on derivatives, net $ 1,006 $ 2,782 $ 349 $ 9,184

Other Assets (Tables)

Other Assets (Tables)	6 Months Ended
	Jun. 30, 2017
Other Assets
Schedule of other assets	Other assets, net consisted of the following (in thousands): June 30, December 31, 2017 2016 (unaudited) Property and equipment, net $ 607 $ 779 Goodwill 990 990 Acquisition deposit 7,000 — Deferred expense on straight-lined third-party tenant leases 2,896 2,876 Interest rate derivatives 1,419 1,749 Other receivables 1,045 1,673 Other 1,093 1,322 Total other assets net $ 15,050 $ 9,389
Schedule of property and equipment	The property and equipment, net noted above consisted of the following (in thousands): June 30, December 31, 2017 2016 (unaudited) Cost basis $ 10,875 $ 10,807 Accumulated depreciation (10,268) (10,028) Property and equipment, net $ 607 $ 779

Notes Payable (Tables)

Notes Payable (Tables)	6 Months Ended
	Jun. 30, 2017
Notes Payable
Schedule of notes payable	Notes payable consisted of the following (in thousands): June 30, December 31, 2017 2016 (unaudited) Notes payable requiring payments of interest and principal, with fixed rates ranging from 4.12% to 5.95%; maturing at dates ranging from November 2020 through January 2025. The notes are collateralized by first deeds of trust on four hotel properties at June 30, 2017, and five hotel properties at December 31, 2016. $ 349,023 $ 528,604 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. 220,736 222,340 Unsecured term loan requiring payments of interest only, with a blended interest rate based on a pricing grid with a range of 180 to 255 basis points over LIBOR, depending on the Company's leverage ratios. LIBOR has been swapped to a fixed rate of 1.591%, resulting in an effective interest rate of 3.391% based on the Company's current leverage. Matures in September 2022. 85,000 85,000 Unsecured term loan requiring payments of interest only, with a blended interest rate based on a pricing grid with a range of 180 to 255 basis points over LIBOR, depending on the Company's leverage ratios. LIBOR has been swapped to a fixed rate of 1.853%, resulting in an effective interest rate of 3.653% based on the Company's current leverage. Matures in January 2023. 100,000 100,000 Unsecured Senior Notes requiring semi-annual payments of interest only, bearing interest at 4.69%; maturing in January 2026. 120,000 — Unsecured Senior Notes requiring semi-annual payments of interest only, bearing interest at 4.79%; maturing in January 2028. 120,000 — Total notes payable $ 994,759 $ 935,944 Current portion of notes payable $ 10,292 $ 186,034 Less: current portion of deferred financing fees (1,269) (1,105) Carrying value of current portion of notes payable $ 9,023 $ 184,929 Notes payable, less current portion $ 984,467 $ 749,910 Less: long-term portion of deferred financing fees (4,401) (3,536) Carrying value of notes payable, less current portion $ 980,066 $ 746,374
Schedule of interest incurred and expensed	Total interest incurred and expensed on the notes payable was as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (unaudited) (unaudited) (unaudited) (unaudited) Interest expense on debt and capital lease obligations $ 11,499 $ 12,541 $ 22,827 $ 25,594 Loss on derivatives, net 1,006 2,782 349 9,184 Amortization of deferred financing fees 579 549 1,157 1,104 Total interest expense $ 13,084 $ 15,872 $ 24,333 $ 35,882

Other Current Liabilities and28

Other Current Liabilities and Other Liabilities (Tables)	6 Months Ended
	Jun. 30, 2017
Other Current Liabilities and Other Liabilities
Schedule of other current liabilities	Other current liabilities consisted of the following (in thousands): June 30, December 31, 2017 2016 (unaudited) Property, sales and use taxes payable $ 19,164 $ 16,965 Income tax payable 180 211 Accrued interest 6,889 1,996 Advance deposits 13,994 14,505 Management fees payable 1,130 1,645 Other 4,754 4,547 Total other current liabilities $ 46,111 $ 39,869
Schedule of other liabilities	Other liabilities consisted of the following (in thousands): June 30, December 31, 2017 2016 (unaudited) Deferred gain on sale of asset $ 7,000 $ 7,000 Deferred revenue 6,018 6,045 Deferred rent 19,681 19,807 Deferred incentive management fees 433 — Other 3,499 3,798 Total other liabilities $ 36,631 $ 36,650

Long-Term Incentive Plan (Table

Long-Term Incentive Plan (Tables)	6 Months Ended
	Jun. 30, 2017
Long-Term Incentive Plan
Schedule of amortization expense and forfeitures related to restricted shares and performance awards	In accordance with the Compensation Topic of the FASB ASC, the Company has elected to account for forfeitures as they occur. The Company’s amortization expense and forfeitures related to restricted shares for the three and six months ended June 30, 2017 and 2016 were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (unaudited) (unaudited) (unaudited) (unaudited) Amortization expense, including forfeitures $ 2,591 $ 2,463 $ 4,340 $ 4,077

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies
Schedule of basic and incentive management fees	Total basic management fees, net of key money incentives received from third-party hotel managers, along with incentive management fees incurred by the Company during the three and six months ended June 30, 2017 and 2016 were included in other property-level expenses on the Company’s consolidated statements of operations and comprehensive income as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (unaudited) (unaudited) (unaudited) (unaudited) Basic management fees $ 8,942 $ 8,953 $ 16,837 $ 16,620 Incentive management fees 1,800 1,490 4,353 3,194 Total basic and incentive management fees $ 10,742 $ 10,443 $ 21,190 $ 19,814
Schedule of License and Franchise Costs	Total license and franchise fees incurred by the Company during the three and six months ended June 30, 2017 and 2016 were included in franchise costs on the Company’s consolidated statements of operations and comprehensive income as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (unaudited) (unaudited) (unaudited) (unaudited) Franchise assessments (1) $ 7,175 $ 7,067 $ 13,102 $ 12,880 Franchise royalties 2,706 2,831 4,834 5,114 Total franchise costs $ 9,881 $ 9,898 $ 17,936 $ 17,994 (1) Includes advertising, reservation and frequent guest club assessments.
Schedule of assets under capital lease	The capital lease asset was included in investment in hotel properties, net on the Company’s consolidated balance sheets as follows (in thousands): June 30, December 31, 2017 2016 (unaudited) Gross capital lease asset - buildings and improvements $ 58,799 $ 58,799 Accumulated depreciation (7,472) (6,738) Net capital lease asset - buildings and improvements $ 51,327 $ 52,061
Schedule of future minimum lease payments under capital lease	Future minimum lease payments under the Company’s capital lease together with the present value of the net minimum lease payments as of June 30, 2017 are as follows (in thousands): 2017 $ 1,403 2018 1,403 2019 1,403 2020 1,403 2021 1,403 Thereafter 105,908 Total minimum lease payments (1) 112,923 Less: Amount representing interest (2) (97,348) Present value of net minimum lease payments (3) $ 15,575 (1) Minimum lease payments do not include percentage rent which may be paid under the Hyatt Centric Chicago Magnificent Mile building lease on the basis of 4.0% of the hotel’s gross room revenues over a certain threshold. No percentage rent was due during the three and six months ended June 30, 2017 and 2016. (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, 2017 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, 2017 and 2016 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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 (unaudited) (unaudited) (unaudited) (unaudited) Minimum rent, including straight-line adjustments $ 2,340 $ 2,210 $ 4,680 $ 4,606 Percentage rent (1) 1,755 2,465 3,340 4,525 Total $ 4,095 $ 4,675 $ 8,020 $ 9,131 (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	As of June 30, 2017, 16 of the Company’s 26 hotels were concentrated in California, Illinois, Massachusetts and the greater Washington DC area as follows: Greater Washington DC California Illinois Massachusetts Area (unaudited) (unaudited) (unaudited) (unaudited) Number of hotels 7 3 3 3 Percentage of total rooms % % % % Percentage of total consolidated revenue during the past 12 months % % % %

Organization and Description 31

Organization and Description of Business (Details)	6 Months Ended
	Jun. 30, 2017item
Organization and Description of Business
Number of hotels managed by third parties	26
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	4
Highgate Hotels L.P. and an affiliate
Organization and Description of Business
Number of hotels managed by third parties	3
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
HEI Hotels & Resorts
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 Accoun32

Summary of Significant Accounting Policies (Details) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017USD ($)$ / sharesshares	Jun. 30, 2016USD ($)$ / sharesshares	Jun. 30, 2017USD ($)item$ / sharesshares	Jun. 30, 2016USD ($)$ / sharesshares	Dec. 31, 2016USD ($)
Numerator:
Net income	$ 51,415	$ 65,736	$ 115,242	$ 66,952
Income from consolidated joint venture attributable to noncontrolling interest	(2,183)	(1,655)	(4,175)	(3,305)
Preferred stock dividends and redemption charge	(3,207)	(6,783)	(6,414)	(9,549)
Distributions paid on unvested restricted stock compensation	(60)	(58)	(120)	(118)
Undistributed income allocated to unvested restricted stock compensation	(188)	(252)	(437)	(170)
Numerator for basic and diluted income attributable to common stockholders	$ 45,777	$ 56,988	$ 104,096	$ 53,810
Denominator:
Weighted average basic and diluted common shares outstanding (in shares) | shares	220,130	215,385	219,614	214,136
Basic and diluted income attributable to common stockholders per common share (in dollars per share) | $ / shares	$ 0.21	$ 0.26	$ 0.47	$ 0.25
ASU 2016-18 - New Accounting Pronouncement
Restricted cash to be included with cash upon adoption of ASU 2016-18	$ 66,415		$ 66,415		$ 67,923
Segment Reporting
Number of operating segments | item			1
Hilton San Diego Bayfront
Basis of Presentation
Noncontrolling interest percentage in Hilton San Diego Bayfront	25.00%		25.00%		25.00%
Stockholders' Equity Attributable to Noncontrolling Interest
Noncontrolling interest percentage in Hilton San Diego Bayfront	25.00%		25.00%		25.00%

Investment in Hotel Propertie33

Investment in Hotel Properties (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Investment in Hotel Properties
Land	$ 529,401	$ 531,660
Buildings and improvements	3,163,757	3,135,806
Furniture, fixtures and equipment	522,623	512,372
Intangible assets	48,759	49,015
Franchise fees	980	1,021
Construction in process	34,805	65,449
Investment in hotel properties, gross	4,300,325	4,295,323
Accumulated depreciation and amortization	(1,195,356)	(1,137,104)
Investment in hotel properties, net	$ 3,104,969	$ 3,158,219

Disposals (Details)

Disposals (Details) $ in Thousands	1 Months Ended		3 Months Ended		6 Months Ended
	Jun. 30, 2017USD ($)room	Feb. 28, 2017USD ($)room	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Dec. 31, 2016USD ($)
Disposals
Gain on sale of assets			$ 1,189	$ 18,223	$ 45,474	$ 18,223
Detail of Amounts Held for Sale
Assets held for sale, net							$ 79,113
Liabilities of assets held for sale							3,153
Sold, not considered a discontinued operation | Marriott Park City
Disposals
Number of rooms sold | room	199
Net proceeds received from sale	$ 27,000
Gain on sale of assets	$ 1,200		1,189
Total revenues			1,243
Income (loss) before income taxes			$ (500)
Sold, not considered a discontinued operation | Fairmont Newport Beach
Disposals
Number of rooms sold | room		444
Net proceeds received from sale		$ 122,800
Gain on sale of assets		$ 44,300
Detail of Amounts Held for Sale
Accounts receivable, net							452
Inventories							126
Prepaid expenses							386
Investment in hotel property, net							77,971
Other assets, net							178
Assets held for sale, net							79,113
Accounts payable and accrued expenses							781
Accrued payroll and employee benefits							751
Other current liabilities							1,473
Other liabilities							148
Liabilities of assets held for sale							$ 3,153
Sold, not considered a discontinued operation | Marriott Park City and Fairmont Newport Beach
Disposals
Gain on sale of assets					45,474
Total revenues					9,980
Income (loss) before income taxes					$ 2,466
Sold, not considered a discontinued operation | Marriott Park City, Fairmont Newport Beach and Sheraton Cerritos
Disposals
Gain on sale of assets				18,223		18,223
Total revenues				11,667		27,440
Income (loss) before income taxes				$ 791		$ 3,649

Fair Value Measurements and I35

Fair Value Measurements and Interest Rate Derivatives - Fair Value Measurements (Details) $ in Thousands	Jun. 30, 2017USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2011item
Assets:
Interest rate derivatives	$ 1,419	$ 1,749
Former Chairman
Liabilities:
Number of installments to be paid out under the Retirement Benefit Agreement | item			10
Total amount paid to date under the Retirement Benefit Agreement	1,400
Level 2
Assets:
Life insurance policy	647	861
Total assets	2,066	2,610
Liabilities:
Retirement benefit agreement	647	861
Total liabilities	647	861
Level 2 | Hilton San Diego Bayfront new interest rate cap
Assets:
Interest rate derivatives	2
Level 2 | Interest Rate Swap
Assets:
Interest rate derivatives	1,417	1,749
Total at the end of the period
Assets:
Life insurance policy	647	861
Total assets	2,066	2,610
Liabilities:
Retirement benefit agreement	647	861
Total liabilities	647	861
Total at the end of the period | Hilton San Diego Bayfront new interest rate cap
Assets:
Interest rate derivatives	2
Total at the end of the period | Interest Rate Swap
Assets:
Interest rate derivatives	$ 1,417	$ 1,749

Fair Value Measurements and I36

Fair Value Measurements and Interest Rate Derivatives - Interest Rate Derivatives (Details) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2017	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Interest Rate Derivatives
Fair value of interest rate derivatives		$ 1,419,000		$ 1,419,000		$ 1,749,000
Fair values of derivative assets		1,419,000		1,419,000		$ 1,749,000
Payment for interest rate derivative				19,000
Loss on derivatives, net		$ 1,006,000	$ 2,782,000	$ 349,000	$ 9,184,000
Hilton San Diego Bayfront mortgage payable
Interest Rate Derivatives
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%
$85.0 million term loan
Interest Rate Derivatives
Term loan total interest rate, including effect of swap agreement		3.391%		3.391%		3.391%
$100.0 million term loan
Interest Rate Derivatives
Term loan total interest rate, including effect of swap agreement		3.653%		3.653%		3.653%
Interest Rate Cap | Not designated as hedging instrument | Hilton San Diego Bayfront mortgage payable
Interest Rate Derivatives
Strike rate under interest rate cap agreement		4.25%		4.25%		4.25%
Interest rate, description of reference rate				1-Month LIBOR		1-Month LIBOR
Effective date				Apr. 15, 2015		Apr. 15, 2015
Maturity Date				May 1, 2017		May 1, 2017
Hilton San Diego Bayfront new interest rate cap | Not designated as hedging instrument | Hilton San Diego Bayfront mortgage payable
Interest Rate Derivatives
Strike rate under interest rate cap agreement		4.25%		4.25%
Interest rate, description of reference rate				1-Month LIBOR
Effective date				May 1, 2017
Maturity Date				May 1, 2019
Notional amount		$ 110,504,000		$ 110,504,000
Fair value of interest rate derivatives		$ 2,000		$ 2,000
Payment for interest rate derivative	$ 19,000
Interest Rate Swap | $85.0 million term loan
Interest Rate Derivatives
Fixed rate under interest rate swap agreement		1.591%		1.591%		1.591%
Interest Rate Swap | $100.0 million term loan
Interest Rate Derivatives
Fixed rate under interest rate swap agreement		1.853%		1.853%		1.853%
Interest Rate Swap | Not designated as hedging instrument | $85.0 million term loan
Interest Rate Derivatives
Term loan total interest rate, including effect of swap agreement		3.391%		3.391%		3.391%
Interest rate, description of reference rate				1-Month LIBOR		1-Month LIBOR
Effective date				Oct. 29, 2015		Oct. 29, 2015
Maturity Date				Sep. 2, 2022		Sep. 2, 2022
Notional amount		$ 85,000,000		$ 85,000,000
Fair value of interest rate derivatives		$ 1,164,000		$ 1,164,000		$ 1,336,000
Fixed rate under interest rate swap agreement		1.591%		1.591%		1.591%
Interest Rate Swap | Not designated as hedging instrument | $100.0 million term loan
Interest Rate Derivatives
Term loan total interest rate, including effect of swap agreement		3.653%		3.653%		3.653%
Interest rate, description of reference rate				1-Month LIBOR		1-Month LIBOR
Effective date				Jan. 29, 2016		Jan. 29, 2016
Maturity Date				Jan. 31, 2023		Jan. 31, 2023
Notional amount		$ 100,000,000		$ 100,000,000
Fair value of interest rate derivatives		$ 253,000		$ 253,000		$ 413,000
Fixed rate under interest rate swap agreement		1.853%		1.853%		1.853%

Fair Value Measurements and I37

Fair Value Measurements and Interest Rate Derivatives - Fair Value of Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Percentage of Debt Bearing Fixed Interest Rates	77.80%	76.20%
Notes payable	$ 994,759	$ 935,944
Level 3
Fair value of debt	$ 992,600	$ 930,700

Other Assets (Details)

Other Assets (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Other assets, net
Property and equipment, net	$ 607	$ 779
Goodwill	990	990
Acquisition deposit	7,000
Deferred expense on straight-lined third-party tenant leases	2,896	2,876
Interest rate derivatives	1,419	1,749
Other receivables	1,045	1,673
Other	1,093	1,322
Total other assets, net	15,050	$ 9,389
Acquisition deposits	$ 7,000

Other Assets - Property and Equ

Other Assets - Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Other Assets
Property and equipment, gross	$ 10,875	$ 10,807
Accumulated depreciation	(10,268)	(10,028)
Property and equipment, net	$ 607	$ 779

Notes Payable (Details)

Notes Payable (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017USD ($)property	Dec. 31, 2016USD ($)property	Jan. 31, 2017
Notes payable
Total notes payable	$ 994,759	$ 935,944
Current portion of notes payable	10,292	186,034
Less: current portion of deferred financing fees	(1,269)	(1,105)
Current portion of notes payable, net	9,023	184,929
Notes payable, less current portion	984,467	749,910
Less: long-term portion of deferred financing fees	(4,401)	(3,536)
Carrying value of notes payable, less current portion	$ 980,066	$ 746,374
Notes payable maturing in various years
Notes payable
Number of hotels provided as collateral | property	4	5
Total notes payable	$ 349,023	$ 528,604
Notes payable maturing in various years | Minimum
Notes payable
Fixed interest rate (as a percent)	4.12%	4.12%
Notes payable maturing in various years | Maximum
Notes payable
Fixed interest rate (as a percent)	5.95%	5.95%
Hilton San Diego Bayfront mortgage payable
Notes payable
Number of hotels provided as collateral | property	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%
Total notes payable	$ 220,736	$ 222,340
$85.0 million term loan
Notes payable
Term loan total interest rate, including effect of swap agreement	3.391%	3.391%
Total notes payable	$ 85,000	$ 85,000
$85.0 million term loan | Minimum
Notes payable
Interest rate added to base rate (as a percent)	1.80%	1.80%
$85.0 million term loan | Maximum
Notes payable
Interest rate added to base rate (as a percent)	2.55%	2.55%
$100.0 million term loan
Notes payable
Term loan total interest rate, including effect of swap agreement	3.653%	3.653%
Total notes payable	$ 100,000	$ 100,000
$100.0 million term loan | Minimum
Notes payable
Interest rate added to base rate (as a percent)	1.80%	1.80%
$100.0 million term loan | Maximum
Notes payable
Interest rate added to base rate (as a percent)	2.55%	2.55%
Series A Senior Notes
Notes payable
Fixed interest rate (as a percent)	4.69%		4.69%
Total notes payable	$ 120,000
Series B Senior Notes
Notes payable
Fixed interest rate (as a percent)	4.79%		4.79%
Total notes payable	$ 120,000
Interest Rate Swap | $85.0 million term loan
Notes payable
Fixed rate under interest rate swap agreement	1.591%	1.591%
Interest Rate Swap | $100.0 million term loan
Notes payable
Fixed rate under interest rate swap agreement	1.853%	1.853%
Not designated as hedging instrument | Interest Rate Cap | Hilton San Diego Bayfront mortgage payable
Notes payable
Interest rate, description of reference rate	1-Month LIBOR	1-Month LIBOR
Not designated as hedging instrument | Interest Rate Swap | $85.0 million term loan
Notes payable
Interest rate, description of reference rate	1-Month LIBOR	1-Month LIBOR
Fixed rate under interest rate swap agreement	1.591%	1.591%
Term loan total interest rate, including effect of swap agreement	3.391%	3.391%
Not designated as hedging instrument | Interest Rate Swap | $100.0 million term loan
Notes payable
Interest rate, description of reference rate	1-Month LIBOR	1-Month LIBOR
Fixed rate under interest rate swap agreement	1.853%	1.853%
Term loan total interest rate, including effect of swap agreement	3.653%	3.653%

Notes Payable - Transactions (D

Notes Payable - Transactions (Details) - USD ($) $ in Thousands	1 Months Ended	6 Months Ended
	Jan. 31, 2017	Jun. 30, 2017	Jun. 30, 2016
Notes Payable Transactions
Proceeds from notes payable		$ 240,000	$ 100,000
Senior Notes
Notes Payable Transactions
Proceeds from notes payable	$ 240,000
Series A Senior Notes
Notes Payable Transactions
Proceeds from notes payable	$ 120,000
Fixed interest rate (as a percent)	4.69%	4.69%
Series B Senior Notes
Notes Payable Transactions
Proceeds from notes payable	$ 120,000
Fixed interest rate (as a percent)	4.79%	4.79%
Marriott Boston Long Wharf mortgage payable
Notes Payable Transactions
Fixed interest rate (as a percent)	5.58%
Repayment of mortgage debt	$ 176,000

Notes Payable - Interest Expens

Notes Payable - Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Interest incurred and expensed
Interest expense on debt and capital lease obligations	$ 11,499	$ 12,541	$ 22,827	$ 25,594
Loss on derivatives, net	1,006	2,782	349	9,184
Amortization of deferred financing fees	579	549	1,157	1,104
Total interest incurred and expensed on debt and capital lease obligations	$ 13,084	$ 15,872	$ 24,333	$ 35,882

Other Current Liabilities and43

Other Current Liabilities and Other Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Other Current Liabilities
Property, sales and use taxes payable	$ 19,164	$ 16,965
Income tax payable	180	211
Accrued interest	6,889	1,996
Advance deposits	13,994	14,505
Management fees payable	1,130	1,645
Other	4,754	4,547
Total other current liabilities	46,111	39,869
Other Liabilities
Deferred gain on sale of asset	7,000	7,000
Deferred revenue	6,018	6,045
Deferred rent	19,681	19,807
Deferred incentive management fees	433
Other	3,499	3,798
Total other liabilities	$ 36,631	$ 36,650

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended		6 Months Ended		12 Months Ended
	May 31, 2016	Mar. 31, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Feb. 28, 2017
Stockholders' equity
Proceeds from preferred stock offerings				$ 190,000
Payment of preferred stock offering costs				6,640
Proceeds from Issuance of Common Stock			$ 76,218
Payments of Stock Issuance Costs			1,427
Preferred stock redemption charge				$ 4,052
Net proceeds from sale of common stock			$ 74,791
Maximum | Share repurchase program
Stockholders' equity
Repurchase Program, maximum amount authorized for repurchase						$ 300,000
Series E Cumulative Redeemable Preferred Stock
Stockholders' equity
Number of shares of preferred stock sold (in shares)		4,600,000
Preferred stock, Cumulative Redeemable Preferred Stock, dividend rate (as a percent)		6.95%	6.95%		6.95%
Liquidation preference (in dollars per share)		$ 25	$ 25		$ 25
Proceeds from preferred stock offerings		$ 115,000
Payment of preferred stock offering costs		$ 4,000
Redemption price (in dollars per share)			$ 25
Series F Cumulative Redeemable Preferred Stock
Stockholders' equity
Number of shares of preferred stock sold (in shares)	3,000,000
Preferred stock, Cumulative Redeemable Preferred Stock, dividend rate (as a percent)	6.45%		6.45%		6.45%
Liquidation preference (in dollars per share)	$ 25		$ 25		$ 25
Proceeds from preferred stock offerings	$ 75,000
Payment of preferred stock offering costs	$ 2,600
Redemption price (in dollars per share)			$ 25
Cumulative Redeemable Preferred Stock | Share repurchase program
Stockholders' equity
Repurchase Program, number of shares repurchased (in shares)			0
Common Stock | Share repurchase program
Stockholders' equity
Repurchase Program, number of shares repurchased (in shares)			0
Common Stock | At The Market
Stockholders' equity
Proceeds from Issuance of Common Stock			$ 76,200
Payments of Stock Issuance Costs			$ 1,400
ATM Program, number of shares sold or issued (in shares)			4,685,023
ATM Program, remaining amount authorized for issuance			$ 223,800
Common Stock | Maximum | At The Market
Stockholders' equity
ATM Program, maximum amount authorized for issuance						$ 300,000

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
	Apr. 30, 2008	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Long-Term Incentive Plan
Amortization related to shares issued to design and construction employees				$ 309	$ 486
Restricted Shares
Long-Term Incentive Plan
Amortization Expense, including forfeitures		$ 2,591	$ 2,463	4,340	4,077
Amortization related to shares issued to design and construction employees		$ 200	$ 200	$ 300	$ 500
Restricted Shares | Minimum
Long-Term Incentive Plan
Vesting period				3 years
Restricted Shares | Maximum
Long-Term Incentive Plan
Vesting period				5 years
Stock Options | Former Chairman
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 outstanding options (in dollars per share)		$ 17.71		$ 17.71
Expiration date of outstanding options	Apr. 27, 2018

Commitments and Contingencies46

Commitments and Contingencies (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Basic and incentive management fees incurred
Basic management fees	$ 8,942	$ 8,953	$ 16,837	$ 16,620
Incentive management fees	1,800	1,490	4,353	3,194
Total basic and incentive management fees	10,742	10,443	21,190	19,814
License and Franchise Agreements
Franchise assessments	7,175	7,067	13,102	12,880
Franchise royalties	2,706	2,831	4,834	5,114
Total franchise costs	9,881	$ 9,898	$ 17,936	$ 17,994
Minimum
Management Agreements
Basic management fees (as a percent)			1.75%
Maximum
Management Agreements
Basic management fees (as a percent)			3.50%
Renovation and Construction Commitments
Renovation and Construction Commitments
Remaining construction commitments	$ 50,300		$ 50,300

Commitments and Contingencies -

Commitments and Contingencies - Capital and Operating Leases (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Future minimum lease payments under capital leases
2,017	$ 1,403,000		$ 1,403,000
2,018	1,403,000		1,403,000
2,019	1,403,000		1,403,000
2,020	1,403,000		1,403,000
2,021	1,403,000		1,403,000
Thereafter	105,908,000		105,908,000
Total minimum lease payments	112,923,000		112,923,000
Less: Amount representing interest	(97,348,000)		(97,348,000)
Present value of net minimum lease payments	15,575,000		15,575,000
Capital lease obligation, current	1,000		1,000
Capital lease obligation, noncurrent	15,574,000		15,574,000		$ 15,574,000
Ground and Operating Leases
Minimum rent, including straight-line adjustments	2,340,000	$ 2,210,000	4,680,000	$ 4,606,000
Percentage rent	1,755,000	2,465,000	3,340,000	4,525,000
Total rent expense included in property tax, ground lease and insurance	4,095,000	4,675,000	8,020,000	9,131,000
Lease expense on corporate facility	100,000	100,000	$ 200,000	$ 200,000
Hyatt Centric Chicago Magnificent Mile
Future minimum lease payments under capital leases
Capital lease contingent rent criteria (as a percent)			4.00%	4.00%
Percentage rent due	0	$ 0	$ 0	$ 0
Hyatt Centric Chicago Magnificent Mile | Buildings and improvements
Assets under capital lease
Capital Leased Assets, Gross	58,799,000		58,799,000		58,799,000
Accumulated depreciation	(7,472,000)		(7,472,000)		(6,738,000)
Capital lease assets, net	$ 51,327,000		$ 51,327,000		$ 52,061,000

Commitments and Contingencies48

Commitments and Contingencies - Concentration of Risk and Other (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017USD ($)property	Jun. 30, 2017USD ($)property
Other
Term of unsecured environmental indemnities	0 years
Damage limitation of unsecured environmental indemnities | $	$ 0
California
Concentration of Risk
Number of hotels which are held for investment	7	7
Illinois
Concentration of Risk
Number of hotels which are held for investment	3	3
Massachusetts
Concentration of Risk
Number of hotels which are held for investment	3	3
Greater Washington DC Area
Concentration of Risk
Number of hotels which are held for investment	3	3
Percentage of total rooms | California
Concentration of Risk
Concentration risk (as a percent)	29.00%
Percentage of total rooms | Illinois
Concentration of Risk
Concentration risk (as a percent)	9.00%
Percentage of total rooms | Massachusetts
Concentration of Risk
Concentration risk (as a percent)	15.00%
Percentage of total rooms | Greater Washington DC Area
Concentration of Risk
Concentration risk (as a percent)	14.00%
Percentage of total revenue generated by hotels | California
Concentration of Risk
Concentration risk (as a percent)		34.00%
Percentage of total revenue generated by hotels | Illinois
Concentration of Risk
Concentration risk (as a percent)		7.00%
Percentage of total revenue generated by hotels | Massachusetts
Concentration of Risk
Concentration risk (as a percent)		16.00%
Percentage of total revenue generated by hotels | Greater Washington DC Area
Concentration of Risk
Concentration risk (as a percent)		14.00%
Workers' compensation insurance programs
Other
Outstanding irrevocable letters of credit | $	$ 500	$ 500
Draws on letters of credit | $	$ 0

Subsequent Events (Details)

Subsequent Events (Details) $ in Thousands	Jul. 25, 2017USD ($)room	Jul. 31, 2017USD ($)shares	Jun. 30, 2017USD ($)
Subsequent Events
Proceeds from Issuance of Common Stock			$ 76,218
Payments of Stock Issuance Costs			$ 1,427
Subsequent Event | Oceans Edge Hotel & Marina
Subsequent Events
Number of rooms | room	175
Purchase price of acquired entity	$ 175,000
At The Market | Subsequent Event
Subsequent Events
Proceeds from Issuance of Common Stock		$ 3,200
Payments of Stock Issuance Costs		$ 100
ATM Program, number of shares sold or issued (in shares) | shares		191,832
ATM Program, remaining amount authorized for issuance		$ 220,600