Sunstone Hotel Investors (SHO) 10-K 14 Feb 19 2018 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Billions	12 Months Ended
	Dec. 31, 2018	Feb. 07, 2019	Jun. 29, 2018
Document and Entity Information
Entity Registrant Name	Sunstone Hotel Investors, Inc.
Entity Central Index Key	1,295,810
Document Type	10-K
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 3.8
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		228,246,247
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 809,316	$ 488,002
Restricted cash	53,053	71,309
Accounts receivable, net	33,844	34,219
Inventories	1,078	1,323
Prepaid expenses	11,183	10,464
Assets held for sale, net		122,807
Total current assets	908,474	728,124
Investment in hotel properties, net	3,030,998	3,106,066
Deferred financing costs, net	3,544	1,305
Other assets, net	29,817	22,317
Total assets	3,972,833	3,857,812
Current liabilities:
Accounts payable and accrued expenses	30,425	31,810
Accrued payroll and employee benefits	25,039	26,687
Dividends and distributions payable	126,461	133,894
Other current liabilities	44,962	44,502
Current portion of notes payable, net	5,838	5,477
Liabilities of assets held for sale		189
Total current liabilities	232,725	242,559
Notes payable, less current portion, net	971,225	977,282
Capital lease obligations, less current portion	27,009	26,804
Other liabilities	30,703	28,989
Total liabilities	1,261,662	1,275,634
Commitments and contingencies (Note 12)
Equity
Common stock, $0.01 par value, 500,000,000 shares authorized, 228,246,247 shares issued and outstanding at December 31, 2018 and 225,321,660 shares issued and outstanding at December 31, 2017	2,282	2,253
Additional paid in capital	2,728,684	2,679,221
Retained earnings	1,182,722	932,277
Cumulative dividends and distributions	(1,440,202)	(1,270,013)
Total stockholders' equity	2,663,486	2,533,738
Noncontrolling interest in consolidated joint venture	47,685	48,440
Total equity	2,711,171	2,582,178
Total liabilities and equity	3,972,833	3,857,812
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	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
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)	228,246,247	225,321,660
Common stock, shares outstanding (in shares)	228,246,247	225,321,660
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	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
REVENUES
Total revenues	$ 1,159,053	$ 1,193,638	$ 1,189,340
OPERATING EXPENSES
Advertising and promotion	55,523	58,572	60,086
Repairs and maintenance	43,111	46,298	44,307
Utilities	29,324	30,419	30,424
Franchise costs	35,423	36,681	36,647
Property tax, ground lease and insurance	82,414	83,716	82,979
Other property-level expenses	132,419	138,525	142,742
Corporate overhead	30,247	28,817	25,991
Depreciation and amortization	146,449	158,634	163,016
Impairment loss	1,394	40,053
Total operating expenses	977,163	1,052,633	1,018,925
Gain on sale of assets	116,961	45,474	18,413
Operating income	298,851	186,479	188,828
Interest and other income	10,500	4,340	1,800
Interest expense	(47,690)	(51,766)	(50,283)
Loss on extinguishment of debt	(835)	(824)	(284)
Income before income taxes and discontinued operations	260,826	138,229	140,061
Income tax (provision) benefit, net	(1,767)	7,775	616
Income from continuing operations	259,059	146,004	140,677
Income from discontinued operations		7,000
NET INCOME	259,059	153,004	140,677
Income from consolidated joint venture attributable to noncontrolling interest	(8,614)	(7,628)	(6,480)
Preferred stock dividends and redemption charge	(12,830)	(12,830)	(15,964)
INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS	$ 237,615	$ 132,546	$ 118,233
Basic and diluted per share amounts:
Income from continuing operations attributable to common stockholders (in dollars per share)	$ 1.05	$ 0.56	$ 0.55
Income from discontinued operations (in dollars per share)		0.03
Basic and diluted income attributable to common stockholders per common share (in dollars per share)	$ 1.05	$ 0.59	$ 0.55
Basic and diluted weighted average common shares outstanding (in shares)	225,924	221,898	214,966
Room
REVENUES
Revenue from contract with customer, excluding assessed tax	$ 799,369	$ 829,320	$ 824,340
OPERATING EXPENSES
Cost of goods and services sold	210,204	213,301	211,947
Food and beverage
REVENUES
Revenue from contract with customer, excluding assessed tax	284,668	296,933	294,415
OPERATING EXPENSES
Cost of goods and services sold	193,486	201,225	204,102
Other operating
REVENUES
Revenue from contract with customer, excluding assessed tax	75,016	67,385	70,585
OPERATING EXPENSES
Cost of goods and services sold	$ 17,169	$ 16,392	$ 16,684

CONSOLIDATED STATEMENTS OF EQUI

CONSOLIDATED STATEMENTS OF EQUITY - USD ($)	Series D Cumulative Redeemable Preferred StockPreferred Stock	Series D Cumulative Redeemable Preferred StockCumulative dividends and distributions	Series D Cumulative Redeemable Preferred Stock	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, 2015	$ 115,000,000									$ 2,076,000	$ 2,458,889,000	$ 652,704,000	$ (927,868,000)	$ 50,319,000	$ 2,351,120,000
Beginning Balance (in shares) at Dec. 31, 2015	4,600,000									207,604,391
Increase (Decrease) in Stockholders' Equity
Deferred stock compensation, net										$ 15,000	7,414,000				7,429,000
Deferred stock compensation, net (in shares)										1,482,621
Issuance of common stock distributions										$ 74,000	78,749,000				78,823,000
Issuance of common stock distributions (in shares)										7,422,081
Common stock distributions and distributions payable													(149,120,000)		(149,120,000)
Preferred stock dividends and dividends payable		$ (2,428,000)	$ (2,428,000)		$ (6,460,000)	$ (6,460,000)		$ (3,024,000)	$ (3,024,000)
Distributions to noncontrolling interest														(7,737,000)	(7,737,000)
Net proceeds from sale of common stock										$ 36,000	54,156,000				54,192,000
Number of shares of common stock sold (in shares)										3,564,047
Net proceeds from sales of preferred stock				$ 115,000,000			$ 75,000,000				(6,640,000)				183,360,000
Number of shares of preferred stock sold (in shares)				4,600,000			3,000,000
Redemption of preferred stock	$ (115,000,000)										4,052,000		(4,052,000)		(115,000,000)
Redemption of preferred stock (in shares)	(4,600,000)
Net income												134,197,000		6,480,000	140,677,000
Ending 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
Ending Balance (in shares) at Dec. 31, 2016				4,600,000			3,000,000			220,073,140
Increase (Decrease) in Stockholders' Equity
Deferred stock compensation, net										$ 4,000	4,717,000				4,721,000
Deferred stock compensation, net (in shares)										371,665
Common stock distributions and distributions payable													(164,231,000)		(164,231,000)
Preferred stock dividends and dividends payable					(7,993,000)	(7,993,000)		(4,837,000)	(4,837,000)
Distributions to noncontrolling interest														(8,250,000)	(8,250,000)
Net proceeds from sale of common stock										$ 48,000	77,884,000				77,932,000
Number of shares of common stock sold (in shares)										4,876,855
Net income												145,376,000		7,628,000	153,004,000
Ending Balance at Dec. 31, 2017				$ 115,000,000			$ 75,000,000			$ 2,253,000	2,679,221,000	932,277,000	(1,270,013,000)	48,440,000	2,582,178,000
Ending Balance (in shares) at Dec. 31, 2017				4,600,000			3,000,000			225,321,660
Increase (Decrease) in Stockholders' Equity
Deferred stock compensation, net										$ 3,000	5,148,000				5,151,000
Deferred stock compensation, net (in shares)										333,733
Common stock distributions and distributions payable													(157,359,000)		(157,359,000)
Preferred stock dividends and dividends payable					$ (7,992,000)	$ (7,992,000)		$ (4,838,000)	$ (4,838,000)
Distributions to noncontrolling interest														(9,369,000)	(9,369,000)
Net proceeds from sale of common stock										$ 26,000	44,315,000				44,341,000
Number of shares of common stock sold (in shares)										2,590,854
Net income												250,445,000		8,614,000	259,059,000
Ending Balance at Dec. 31, 2018				$ 115,000,000			$ 75,000,000			$ 2,282,000	$ 2,728,684,000	$ 1,182,722,000	$ (1,440,202,000)	$ 47,685,000	$ 2,711,171,000
Ending Balance (in shares) at Dec. 31, 2018				4,600,000			3,000,000			228,246,247

CONSOLIDATED STATEMENT OF EQUIT

CONSOLIDATED STATEMENT OF EQUITY (Parenthetical)	12 Months Ended
	Dec. 31, 2016$ / shares
Issuance of common stock distributions per share (in dollars per share)	$ 1.26
Common stock distributions and distributions payable, per share (in dollars per share)	0.68
Series D Cumulative Redeemable Preferred Stock
Preferred stock dividends and dividends payable (in dollars per share)	0.527778
Series E Cumulative Redeemable Preferred Stock
Preferred stock dividends and dividends payable (in dollars per share)	1.40445
Series F Cumulative Redeemable Preferred Stock
Preferred stock dividends and dividends payable (in dollars per share)	$ 1.00785

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 259,059	$ 153,004	$ 140,677
Adjustments to reconcile net income to net cash provided by operating activities:
Bad debt expense	815	730	618
Gain on sale of assets, net	(116,916)	(52,747)	(18,422)
Loss on extinguishment of debt	835	824	284
Noncash interest on derivatives and capital lease obligations, net	(1,190)	3,106	(1,426)
Depreciation	144,958	155,962	159,919
Amortization of franchise fees and other intangibles	1,582	3,141	3,743
Amortization of deferred financing costs	2,947	2,409	2,200
Amortization of deferred stock compensation	9,007	8,042	7,157
Impairment loss	1,394	40,053
(Gain) loss on hurricane-related damage	(1,100)	201
Deferred income taxes, net	1,132	(9,235)
Changes in operating assets and liabilities:
Accounts receivable	905	3,175	(8,401)
Inventories	117	(16)	40
Prepaid expenses and other assets	72	(1,820)	977
Accounts payable and other liabilities	3,322	(822)	476
Accrued payroll and employee benefits	(1,648)	784	(54)
Net cash provided by operating activities	305,291	306,791	287,788
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales of assets	348,032	150,215	41,587
Disposition deposit			250
Proceeds From property insurance	1,100
Acquisitions of hotel property and other assets, net	(15,147)	(173,728)
Acquisitions of intangible assets	(18,543)		(2,447)
Renovations and additions to hotel properties and other assets	(159,076)	(115,097)	(182,185)
Payment for interest rate derivatives		(125)
Net cash provided by (used in) investing activities	156,366	(138,735)	(142,795)
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	45,125	79,407	55,133
Payment of common stock offering costs	(784)	(1,475)	(941)
Repurchase of common stock for employee withholding obligations	(4,232)	(3,793)	(2,641)
Proceeds from notes payable and debt restructuring	65,000	460,000	100,000
Payments on notes payable and debt restructuring	(72,574)	(405,542)	(265,536)
Payments of costs related to extinguishment of debt	(131)	(1)	(173)
Payments of deferred financing costs	(4,012)	(3,537)	(1,759)
Dividends and distributions paid	(177,622)	(163,014)	(227,486)
Distributions to noncontrolling interest	(9,369)	(8,250)	(7,737)
Net cash used in financing activities	(158,599)	(46,205)	(282,780)
Net increase (decrease) in cash and cash equivalents and restricted cash	303,058	121,851	(137,787)
Cash and cash equivalents and restricted cash, beginning of year	559,311	437,460	575,247
Cash and cash equivalents and restricted cash, end of year	862,369	559,311	437,460
Supplemental Disclosure of Cash Flow Information
Cash and cash equivalents	809,316	488,002	369,537
Restricted cash	53,053	71,309	67,923
Cash and cash equivalents and restricted cash, end of year	862,369	559,311	437,460
Cash paid for interest	44,795	40,987	50,107
Cash paid for income taxes, net	693	1,433	1,241
Supplemental Disclosure of Noncash Investing and Financing Activties
(Decrease) increase in accounts payable related to renovations and additions to hotel properties and other assets	(2,506)	(3,180)	6,429
Amortization of deferred stock compensation - construction activities	376	472	591
Increase in unsecured term loans due to debt restructuring	50,000
Decrease in unsecured term loans due to debt restructuring	(50,000)
Preferred stock redemption charge			4,052
Issuance of common stock distributions			78,823
Dividends and distributions payable	$ 126,461	$ 133,894	$ 119,847

Organization and Description of

Organization and Description of Business	12 Months Ended
	Dec. 31, 2018
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 elected to be taxed as a real estate investment trust (“REIT”) for federal income tax purposes, commencing with its taxable year ended on December 31, 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, and may also selectively sell hotels that no longer fit its stated strategy. 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 December 31, 2018, the Company had interests in 21 hotels (the “21 hotels”), currently held for investment. The Company’s third-party managers included the following: Number of Hotels Subsidiaries of Marriott International, Inc. or Marriott Hotel Services, Inc. (collectively, “Marriott”) 8 Interstate Hotels & Resorts, Inc. 3 Highgate Hotels L.P. and an affiliate 3 Crestline Hotels & Resorts 2 Hilton Worldwide 2 Davidson Hotels & Resorts 1 Hyatt Corporation 1 Singh Hospitality, LLC 1 Total hotels owned as of December 31, 2018 21

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2018
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 December 31, 2018 and 2017, and for the years ended December 31, 2018, 2017 and 2016, include the accounts of the Company, the Operating Partnership, the TRS Lessee and their controlled subsidiaries. All significant intercompany balances and transactions have been eliminated. If the Company determines that it has an interest in a variable interest entity, the Company will consolidate the entity when it is determined to be the primary beneficiary of the entity. 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 accounting principles generally accepted in the United States (“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. Cash and Cash Equivalents Cash and cash equivalents includes cash on hand and in various bank accounts plus credit card receivables and all short-term investments with an original maturity of three months or less. The Company maintains cash and cash equivalents and certain other financial instruments with various financial institutions. These financial institutions are located throughout the country and the Company’s policy is designed to limit exposure to any one institution. The Company performs periodic evaluations of the relative credit standing of those financial institutions that are considered in the Company’s investment strategy. At December 31, 2018 and 2017, the Company had amounts in banks that were in excess of federally insured amounts. Restricted Cash Restricted cash is comprised of reserve accounts for debt service, interest reserves, seasonality reserves, capital replacements, ground leases and property taxes. These restricted funds are subject to supervision and disbursement approval by certain of the Company’s lenders and/or hotel managers. Restricted cash may also include earnest money received from a buyer of one of the Company’s hotels and held in escrow until the sale is complete. Accounts Receivable Accounts receivable primarily represents receivables from hotel guests who occupy hotel rooms and utilize hotel services. Accounts receivable also includes, among other things, receivables from tenants who lease space in the Company’s hotels. The Company maintains an allowance for doubtful accounts sufficient to cover potential credit losses. Inventories Inventories, consisting primarily of food and beverages at the hotels, are stated at the lower of cost or market, with cost determined on a method that approximates first-in, first-out basis. Acquisitions of Hotel Properties and Other Entities Accounting for the acquisition of a hotel property or other entity requires an allocation of the purchase price to the assets acquired and the liabilities assumed in the transaction at their respective relative fair values for an asset acquisition or at their estimated fair values for a business combination. The most difficult estimations of individual fair values are those involving long-lived assets, such as property, equipment, intangible assets and any capital lease obligations that are assumed as part of the acquisition of a leasehold interest. When the Company acquires a hotel property or other entity, it uses all available information to make these fair value determinations, and engages independent valuation specialists to assist in the fair value determinations of the long-lived assets acquired and the liabilities assumed. Due to the inherent subjectivity in determining the estimated fair value of long-lived assets, the Company believes that the recording of acquired assets and liabilities is a critical accounting policy. In addition, the acquisition of a hotel property or other entity requires an analysis of the transaction to determine if it qualifies as the purchase of a business or an asset. If the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, then the transaction is an asset acquisition. Transaction costs associated with asset acquisitions are capitalized and subsequently depreciated over the life of the related asset, while the same costs associated with a business combination are expensed as incurred and included in corporate overhead on the Company’s consolidated statements of operations. Also, asset acquisitions are not subject to a measurement period, as are business combinations. Investments in Hotel Properties Investments in hotel properties, including land, buildings, furniture, fixtures and equipment (“FF&E”) and identifiable intangible assets are recorded at fair value upon acquisition. Property and equipment purchased after the hotel acquisition date is recorded at cost. Replacements and improvements are capitalized, while repairs and maintenance are expensed as incurred. Upon the sale or retirement of a fixed asset, the cost and related accumulated depreciation is removed from the Company’s accounts and any resulting gain or loss is included in the statements of operations. Depreciation expense is based on the estimated life of the Company’s assets. The life is based on a number of assumptions, including the cost and timing of capital expenditures to maintain and refurbish the Company’s hotels, as well as specific market and economic conditions. Hotel properties, including related assets under capital leases, are depreciated using the straight-line method over estimated useful lives primarily ranging from five to 40 years for buildings and improvements and three to 12 years for FF&E. Intangible assets are amortized using the straight-line method over their estimated useful life or over the length of the related agreement, whichever is shorter. The Company’s investment in hotel properties, net also includes initial franchise fees which are recorded at cost and amortized using the straight-line method over the terms of the franchise agreements ranging from 14 to 27 years. All other franchise fees that are based on the Company’s results of operations are expensed as incurred. While the Company believes its estimates are reasonable, a change in the estimated lives could affect depreciation expense and net income or the gain or loss on the sale of any of the Company’s hotels. The Company has not changed the useful lives of any of its assets during the periods discussed. Impairment losses are recorded on long-lived assets to be held and used by the Company when indicators of impairment are present and the future undiscounted net cash flows expected to be generated by those assets, based on the Company’s anticipated investment horizon, are less than the assets’ carrying amount. If such assets are considered to be impaired, the related assets are adjusted to their estimated fair value and an impairment loss is recognized. The impairment loss recognized is measured by the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. The Company performs a fair value assessment, using a discounted cash flow analysis to estimate the fair value of its hotel properties, taking into account each property’s expected cash flow from operations, the Company’s estimate of how long it will continue to own each property and estimated proceeds from the disposition of the property. The factors addressed in determining estimated proceeds from disposition include anticipated operating cash flow in the year of disposition and terminal capitalization rate. The Company’s judgement is required in determining the discount rate applied to estimated cash flows, the estimated growth of revenues and expenses, net operating income and margins, the need for capital expenditures, as well as specific market and economic conditions. Based on the Company’s review, two hotel properties were impaired during 2018 and 2017 (see Note 5), and no hotel properties were impaired during 2016. Fair value represents the amount at which an asset could be bought or sold in a current transaction between willing parties, that is, other than a forced or liquidation sale. The estimation process involved in determining if assets have been impaired and in the determination of fair value is inherently uncertain because it requires estimates of current market yields as well as future events and conditions. Such future events and conditions include economic and market conditions, as well as the availability of suitable financing. The realization of the Company’s investment in hotel properties is dependent upon future uncertain events and conditions and, accordingly, the actual timing and amounts realized by the Company may be materially different from their estimated fair values. Assets Held for Sale The Company considers a hotel held for sale if it is probable that the sale will be completed within twelve months, among other requirements. A sale may be considered to be probable once the buyer completes its due diligence of the asset, there is an executed purchase and sale agreement between the Company and the buyer, the buyer waives any closing contingencies, there are no third party approvals necessary and the Company has received a substantial non-refundable deposit. Depreciation ceases when a property is held for sale. Should an impairment loss be required for assets held for sale, the related assets are adjusted to their estimated fair values, less costs to sell. If the sale of the hotel represents a strategic shift that will have a major effect on the Company’s operations and financial results, the hotel is included in discontinued operations, and operating results are removed from income from continuing operations and reported as discontinued operations. The operating results for any such assets for any prior periods presented must also be reclassified as discontinued operations. As of December 31, 2017, the Company’s Marriott Philadelphia and Marriott Quincy were considered held for sale, and subsequently sold in January 2018 (see Note 4). Based on the criteria noted above, neither of these hotels was included in discontinued operations. No hotels were considered held for sale as of December 31, 2018. Deferred Financing Costs Deferred financing costs consist of loan fees and other financing costs related to the Company’s outstanding indebtedness and credit facility commitments, and are amortized to interest expense over the terms of the related debt or commitment. If a loan is refinanced or paid before its maturity, any unamortized deferred financing costs will generally be expensed unless specific rules are met that would allow for the carryover of such costs to the refinanced debt. Deferred financing costs related to the Company’s undrawn credit facility are included on the Company’s consolidated balance sheets as an asset, and are amortized ratably over the term of the line of credit arrangement, regardless of whether there are any outstanding borrowings on the line of credit arrangement. Deferred financing costs related to the Company’s outstanding debt are included on the Company’s consolidated balance sheets as a contra-liability (see Note 7), and subsequently amortized ratably over the term of the related debt. Interest Rate Derivatives The Company’s objective in holding interest rate derivatives is to manage its exposure to the interest rate risks related to its floating rate debt. To accomplish this objective, the Company uses interest rate caps and swaps, none of which qualifies for effective hedge accounting treatment. The Company records interest rate caps and swaps on the balance sheet at their fair value. Changes in the fair value of derivatives are recorded each period in the consolidated statements of operations. Revenue Recognition Revenues are recognized when control of the promised goods or services is transferred to hotel guests, which is generally defined as the date upon which a guest occupies a room and/or utilizes the hotel’s services. Room revenue is recognized over a guest’s stay at a previously agreed upon daily rate. Additionally, some of the Company’s hotel rooms are booked through independent internet travel intermediaries. If the guest pays the independent internet travel intermediary directly, revenue for the room is recognized by the Company at the price the Company sold the room to the independent internet travel intermediary, less any discount or commission paid. If the guest pays the Company directly, revenue for the room is recognized by the Company on a gross basis, with the related discount or commission recognized in room expense. A majority of the Company’s hotels participate in frequent guest programs sponsored by the hotel brand owners whereby the hotel allows guests to earn loyalty points during their hotel stay. The Company expenses charges associated with these programs as incurred, and recognizes revenue at the amount it will receive from the brand when a guest redeems their loyalty points by staying at one of the Company’s hotels. In addition, some contracts for rooms or food and beverage services require an advance deposit, which the Company records as deferred revenue (or a contract liability) and recognizes once the performance obligations are satisfied. Food and beverage revenue and other ancillary services revenue are generated when a customer chooses to purchase goods or services separately from a hotel room. These revenue streams are recognized during the time the goods or services are provided to the customer at the amount the Company expects to be entitled to in exchange for those goods or services. For those ancillary services provided by third parties, the Company assesses whether it is the principal or the agent. If the Company is the principal, revenue is recognized based upon the gross sales price. If the Company is the agent, revenue is recognized based upon the commission earned from the third party. Additionally, the Company collects sales, use, occupancy and other similar taxes at its hotels. These taxes are collected from customers at the time of purchase, but are not included in revenue. The Company records a liability upon collection of such taxes from the customer, and relieves the liability when payments are remitted to the applicable governmental agency. Trade receivables and contract liabilities consisted of the following (in thousands): December 31, December 31, 2018 2017 Trade receivables, net (1) $ 18,982 $ 20,773 Contract liabilities (2) $ 16,711 $ 13,454 (1) Trade receivables are included in accounts receivable, net on the accompanying consolidated balance sheets. (2) Contract liabilities consist of advance deposits, and are included in other current liabilities on the accompanying consolidated balance sheets. Of the amount outstanding at December 31, 2017, approximately $13.2 million was recognized in revenue during the year ended December 31, 2018. Advertising and Promotion Costs Advertising and promotion costs are expensed when incurred. Advertising and promotion costs represent the expense for advertising and reservation systems under the terms of the hotel franchise and brand management agreements and general and administrative expenses that are directly attributable to advertising and promotions. Stock Based Compensation 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. Income Taxes The Company is subject to certain state and local taxes on its income and property, and to federal income and excise taxes on its undistributed taxable income. In addition, the TRS Lessee, which leases the Company’s hotels from the Operating Partnership, is subject to federal and state income taxes. The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and for net operating loss, capital loss and tax credit carryforwards. The deferred tax assets and liabilities are measured using the enacted income tax rates in effect for the year in which those temporary differences are expected to be realized or settled. The effect on the deferred tax assets and liabilities from a change in tax rates is recognized in earnings in the period when the new rate is enacted. However, deferred tax assets are recognized only to the extent that it is more likely than not that they will be realized based on consideration of all available evidence, including the future reversals of existing taxable temporary differences, future projected taxable income and tax planning strategies. Valuation allowances are provided if, based upon the weight of the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company reviews any uncertain tax positions and, if necessary, records the expected future tax consequences of uncertain tax positions in its consolidated financial statements. Tax positions not deemed to meet the “more-likely-than-not” threshold are recorded as a tax benefit or expense in the current year. The Company’s management is required to analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions, which includes federal and certain states. The Company recognizes any penalties and interest related to unrecognized tax benefits in income tax expense in its consolidated statements of operations. Comprehensive Income The Company does not have any comprehensive income other than what is included in net income. If the Company has any comprehensive income in the future such that a statement of comprehensive income would be necessary, the Company will include such statement in one continuous consolidated statement of operations. 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, revenues, expenses and net income or loss from the less-than-wholly-owned subsidiary are reported at their consolidated amounts, 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 statements of equity include beginning balances, activity for the period and ending balances for each component of stockholders’ equity, noncontrolling interest and total equity. At December 31, 2018, 2017 and 2016, the noncontrolling interest reported in the Company’s financial statements consisted of a third-party’s 25.0% ownership interest in the Hilton San Diego Bayfront. Dividends Under current federal income tax laws related to REITs, the Company is required to distribute at least 90% of its net taxable income to its stockholders. Currently, the Company pays quarterly cash dividends to its common stockholders, as well as to the preferred stockholders of its 6.95% Series E Cumulative Redeemable Preferred Stock (“Series E preferred stock”) and its 6.45% Series F Cumulative Preferred Stock (“Series F preferred stock”) as declared by the Company’s board of directors. Prior to its redemption date in April 2016, the Company also paid quarterly cash dividends to the preferred stockholders of its 8.0% Series D Cumulative Redeemable Preferred Stock (“Series D preferred stock”) as declared by the Company’s board of directors. The Company’s ability to pay dividends is dependent on the receipt of distributions from the Operating Partnership. Earnings Per Share The Company applies the two-class method when computing its earnings per share. 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. Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are considered participating securities and are included in the computation of earnings per share. 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 (before their expiration in April 2018), 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): Year Ended Year Ended Year Ended December 31, 2018 December 31, 2017 December 31, 2016 Numerator: Net income $ 259,059 $ 153,004 $ 140,677 Income from consolidated joint venture attributable to noncontrolling interest (8,614) (7,628) (6,480) Preferred stock dividends and redemption charge (12,830) (12,830) (15,964) Distributions paid on unvested restricted stock compensation (814) (860) (754) Undistributed income allocated to unvested restricted stock compensation (422) — — Numerator for basic and diluted income attributable to common stockholders $ 236,379 $ 131,686 $ 117,479 Denominator: Weighted average basic and diluted common shares outstanding 225,924 221,898 214,966 Basic and diluted income attributable to common stockholders per common share $ 1.05 $ 0.59 $ 0.55 The Company’s unvested restricted shares associated with its long-term incentive plan and shares associated with common stock options, as applicable, have been excluded from the above calculation of earnings per share for the years ended December 31, 2018, 2017 and 2016, as their inclusion would have been anti-dilutive. Segment Reporting The Company considers each of its hotels to be an operating segment, and allocates resources and assesses the operating performance for each hotel. Because all of the Company’s hotels have similar economic characteristics, facilities and services, the hotels have been aggregated into a single reportable segment, hotel ownership. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“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 applies 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. 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. 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. The Company adopted ASU No. 2014-09, along with the related clarifications and amendments in ASU No. 2016-08 and ASU No. 2016-12, in January 2018, using the modified retrospective approach to contracts that were not complete as of January 1, 2018. Due to the short-term nature of the Company’s revenue streams, the adoption of ASU No. 2014-09 did not have a material impact on the amount and timing of revenue recognized from rooms, food and beverage and other ancillary hotel services . In addition, the Company determined that presenting its revenue streams disaggregated into the categories of rooms, food and beverage, and other on its consolidated statements of operations depicts how the nature, timing and uncertainty of revenue and cash flows are affected by economic factors, and that no further disaggregation is needed. See Revenue Recognition in Note 2 for additional disclosures. 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. A lessee will be required to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similarly to existing guidance for operating leases today. ASU No. 2016-02 also eliminates existing real estate-specific provisions and changes the guidance on sale-leaseback transactions, initial direct costs and lease executory costs for all entities. 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 initially required a modified retrospective approach for leases that exist or are entered into after the date of initial application, with an option to use certain transition relief. In January 2018, the FASB issued Accounting Standards Update No. 2018-01, “ Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842 ” (“ASU No. 2018-01”), which allows a company to elect a practical expedient regarding land easements. By electing this practical expedient, the Company will not be required to reassess whether a land easement not previously accounted for as a lease would now be a lease. In July 2018, the FASB issued Accounting Standards Update No. 2018-10, “ Codification Improvements to Topic 842, Leases ” (“ASU No. 2018-10”) and Accounting Standards Update No. 2018-11, “ Leases (Topic 842): Targeted Improvements ” (“ASU No. 2018-11”), both of which provide practical expedients that the Company intends to adopt. By adopting these practical expedients, the Company will not be required to reassess (i) whether an expired or existing contract meets the definition of a lease; (ii) the lease classification at the adoption date for existing leases; and (iii) whether costs previously capitalized as initial direct costs would continue to be amortized . In addition, the Company intends to adopt the lessor practical expedient provided by ASU No. 2018-11 whereby lessors, by class of underlying asset, will not be required to separate nonlease components from the associated lease component, if certain conditions are met. The Company does not intend to elect the hindsight practical expedient. ASU No. 2018-11 also adds a transition option to the new leases standard that allows entities to apply the transition provisions of the new standard at its adoption date instead of the earliest comparative period presented in its financial statements. In December 2018, the FASB issued Accounting Standards Update No. 2018-20, “ Leases (Topic 842): Narrow-Scope Improvements for Lessors ” (“ASU No. 2018-20”), which allows lessors to make certain policy elections related to sales and other similar taxes. In addition, ASU No. 2018-20 requires lessors to (i) exclude lessor costs paid directly by lessees to third parties on the lessor’s behalf from variable payments and therefore variable lease revenue; and (ii) include lessor costs paid by the lessor and reimbursed by the lessee in the measurement of variable lease revenue and the associated expense. ASU No. 2018-20 also clarifies that when lessors allocate variable payments to the lease and non-lease components, they are required to follow the recognition guidance in the new leases standard for the lease component and other applicable guidance for the non-lease component. The Company intends to adopt ASU No. 2016-02, along with its related clarifications and amendments, on the effective date of January 1, 2019, and is finalizing its evaluation of the potential changes from this standard to its future financial reporting and disclosures, as well as designing and implementing related processes and controls. The Company expects the standard to result in recording a right of use asset and the related lease liability of between $41 million and $51 million related to its operating leases. Any changes to discount rates, lease terms or other variables may have a significant effect on the calculation of this recorded amount. The Company does not expect the adoption of the standard to result in a cumulative effect adjustment, or that the adoption of the standard will have a material impact on its results of operations or liquidity. 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

Investment in Hotel Properties

Investment in Hotel Properties	12 Months Ended
	Dec. 31, 2018
Investment in Hotel Properties
Investment in Hotel Properties	3. Investment in Hotel Properties Investment in hotel properties, net consisted of the following (in thousands): December 31, 2018 2017 Land $ 611,993 $ 605,054 Buildings and improvements 2,983,308 3,049,569 Furniture, fixtures and equipment 486,441 484,749 Intangible assets 56,021 48,371 Franchise fees 778 980 Construction in progress 60,744 54,280 Investment in hotel properties, gross 4,199,285 4,243,003 Accumulated depreciation and amortization (1,168,287) (1,136,937) Investment in hotel properties, net $ 3,030,998 $ 3,106,066 In 2018, the Company received $5.8 million in business interruption proceeds for the Oceans Edge Resort & Marina related to Hurricane Irma. The proceeds are included in other operating revenue in the Company’s consolidated statements of operations. Acquisitions - 2018 In May 2018, the Company paid $18.4 million, including closing costs, to acquire the exclusive perpetual rights to use portions of the Renaissance Washington DC building that the Company had previously leased from an unaffiliated third party (the “Element”). In May 2018, August 2018 and December 2018, the Company paid a total of $0.1 million, including closing costs, to acquire four additional dry boat slips at the Oceans Edge Resort & Marina. In July 2018, the Company purchased the land underlying the JW Marriott New Orleans for $15.1 million, including closing costs. Prior to this purchase, the Company leased the land from an unaffiliated third party. Acquisitions - 2017 In July 2017, the Company purchased the newly-developed 175-room Oceans Edge Resort & Marina in Key West, Florida for a net purchase price of $173.9 million, including prorations. The purchase of the hotel included a marina, wet and dry boat slips and other customary marina amenities. The Company recorded the acquisition at fair value using an independent third-party analysis, with the purchase price allocated to investment in hotel properties and hotel working capital assets. The Company recognized acquisition related costs of $0.7 million in 2017, which are included in corporate overhead on the Company’s consolidated statements of operations. The results of operations for the Oceans Edge Resort & Marina have been included in the Company’s consolidated statements of operations from the acquisition date of July 25, 2017 through the year ended December 31, 2018. The fair values of the assets acquired and liabilities assumed at the Oceans Edge Resort & Marina’s acquisition date were allocated as follows (in thousands): Assets: Investment in hotel properties $ 174,971 Accounts receivable 15 Inventories 50 Prepaid expenses 41 Other assets 84 Total assets acquired 175,161 Liabilities: Accounts payable and accrued expenses 210 Accrued payroll and employee benefits 256 Other current liabilities 752 Other liabilities 26 Total liabilities assumed 1,244 Total cash paid for acquisition $ 173,917 Investment in hotel properties was allocated to land ($92.5 million), buildings and improvements ($74.4 million), furniture, fixtures and equipment ($6.4 million), and intangibles ($1.7 million) related to air rights and in-place lease agreements. The air rights have a value of $1.6 million and an indefinite life. The in-place lease agreements, which are related to the wet and dry boat slips, have a value of $0.1 million and had a weighted average life of nine months. Unaudited Pro Forma Results Acquired properties are included in the Company’s results of operations from the date of acquisition. The following unaudited pro forma results of operations reflect the Company’s results as if the acquisition of the Oceans Edge Resort & Marina had occurred on January 1, 2017. The information is not necessarily indicative of the results that actually would have occurred, nor does it indicate future operating results. Since the newly-developed hotel opened in mid-January 2017, the results presented for 2017 are slightly less than a full year, and there are no 2016 results. In the Company’s opinion, all significant adjustments necessary to reflect the effects of the acquisition have been made (in thousands, except per share data): 2017 Revenues $ 1,202,887 Income attributable to common stockholders $ 133,939 Income per diluted share attributable to common stockholders $ 0.60 For the year ended December 31, 2017, the Company included $5.1 million of revenues, and a net loss of $1.4 million, which includes $0.8 million in hurricane-related restoration expenses, in its consolidated statements of operations related to the Company’s acquisition of the Oceans Edge Resort & Marina. Intangible Assets Intangible assets included in the Company’s investment in hotel properties, net consisted of the following (in thousands): December 31, 2018 2017 Advanced bookings (1) $ — $ 10,621 Easement/Element agreements (2) 28,163 9,727 Ground lease/air rights agreements (3) 25,585 25,478 In-place lease agreements (4) 1,312 1,517 Above market lease agreement (5) — 67 Below market management agreement (6) 961 961 56,021 48,371 Accumulated amortization (5,132) (14,233) $ 50,889 $ 34,138 Amortization expense on these intangible assets for the years ended December 31, 2018, 2017 and 2016 consisted of the following (in thousands): 2018 2017 2016 Advanced bookings (1) $ 1,201 $ 2,340 $ 2,340 Ground lease/air rights agreements (3) 255 255 255 In-place lease agreements (4) 237 276 697 Above market lease agreements (5) 8 16 301 Below market management agreement (6) 91 299 469 $ 1,792 $ 3,186 $ 4,062 (1) Prior to being fully amortized in July 2018, advanced bookings consisted of advance deposits related to the purchases of the Boston Park Plaza, the Hyatt Regency San Francisco and the Wailea Beach Resort. The contractual advanced hotel bookings were recorded at a discounted present value based on estimated collectability, and were amortized using the straight-line method over the periods the amounts were expected to be collected. The amortization expense for contractual advanced hotel bookings is included in depreciation and amortization expense in the Company’s consolidated statements of operations. Advanced bookings for the Hyatt Regency San Francisco were fully amortized in December 2017, and the advanced bookings for the Boston Park Plaza and the Wailea Beach Resort were fully amortized in June 2018 and July 2018, respectively. (2) The Easement/Element agreements as of December 31, 2018 consisted of an easement at the Hilton Times Square, and the Element at the Renaissance Washington DC, both of which were valued at fair value at the date of acquisition. The agreements have indefinite useful lives, and, therefore, are not amortized. These non-amortizable intangible assets are reviewed annually for impairment and more frequently if events or circumstances indicate that the asset may be impaired. If a non-amortizable intangible asset is subsequently determined to have a finite useful life, the intangible asset will be written down to the lower of its fair value or carrying amount and then amortized prospectively, based on the remaining useful life of the intangible asset. (3) Ground lease/air rights agreements as of December 31, 2018 included a ground lease at the Hilton Times Square, and air rights at both the Renaissance Harborplace and the Oceans Edge Resort & Marina. The ground lease agreement at the Hilton Times Square was valued at fair value at the date of acquisition. The agreement is amortized using the straight-line method over the remaining non-cancelable 72-year lease term as of December 31, 2018. The amortization expense for the agreement is included in property tax, ground lease and insurance expense in the Company’s consolidated statements of operations. The air rights assets at the Renaissance Harborplace and the Oceans Edge Resort & Marina were both valued at fair value at the dates of acquisition, and both have indefinite useful lives and are not amortized. (4) In-place lease agreements as of December 31, 2018 included in-place lease agreements at the Hilton San Diego Bayfront, the Hyatt Regency San Francisco and the Wailea Beach Resort. Prior to being fully amortized in July 2018, in-place lease agreements also included agreements at the Oceans Edge Resort & Marina. The agreements were valued at fair value at the dates of acquisition, and are amortized using the straight-line method over the remaining non-cancelable terms of the related agreements, which range from between approximately two months and seven months as of December 31, 2018. The amortization expense for the agreements is included in depreciation and amortization expense in the Company’s consolidated statements of operations. (5) Prior to being fully amortized in July 2018 and February 2017, the above market lease agreements consisted of favorable tenant leases at the Hyatt Regency San Francisco and the Hilton New Orleans St. Charles, respectively. The agreements were valued at fair value at the dates of acquisition, and amortized using the straight-line method over the remaining non-cancelable term of the related agreements. The amortization expense for the agreements is included in other operating revenue in the Company’s consolidated statements of operations. (6) The below market management agreement at the Hilton Garden Inn Chicago Downtown/Magnificent Mile was valued at fair value at the acquisition date. The agreement is comprised of two components, one for the management of the Hilton Garden Inn Chicago Downtown/Magnificent Mile, and the other for the potential management of a future hotel. The component related to the management of the Hilton Garden Inn Chicago Downtown/Magnificent Mile is amortized using the straight-line method over the remaining non-cancelable term, and will be fully amortized in December 2022. The component related to the potential management of a future hotel was amortized using the straight-line method over the remaining non-cancelable term, and was fully amortized in July 2017. The amortization expense for the agreement is included in other property-level expenses in the Company’s consolidated statements of operations. For the next five years, amortization expense for the intangible assets noted above is expected to be as follows (in thousands): 2019 $ 382 2020 $ 347 2021 $ 347 2022 $ 347 2023 $ 255

Disposals and Discontinued Oper

Disposals and Discontinued Operations	12 Months Ended
	Dec. 31, 2018
Disposals and Discontinued Operations
Disposals and Discontinued Operations	4. Disposals and Discontinued Operations Disposals - 2018 The Company sold the Marriott Philadelphia and the Marriott Quincy, located in Pennsylvania and Massachusetts, respectively, in January 2018, the Hyatt Regency Newport Beach, located in California, in July 2018, the Marriott Houston and the Hilton North Houston (the “Houston hotels”), located in Texas, in October 2018 and the Marriott Tysons Corner, located in Virginia, in December 2018. None of these sales qualified as a disposition of a business. In addition, none of the sales represented a strategic shift that had a major impact on the Company’s business plan or its primary markets; therefore, none of these sales qualified as a discontinued operation. The details of the sales were as follows (in thousands): Net Proceeds Net Gain Marriott Philadelphia and Marriott Quincy $ 136,983 $ 15,659 Hyatt Regency Newport Beach 94,043 53,128 Houston hotels 32,421 336 Marriott Tysons Corner 84,526 47,838 $ 347,973 $ 116,961 The Company classified the assets and liabilities related to the Marriott Philadelphia and the Marriott Quincy as held for sale as of December 31, 2017 as follows (in thousands): December 31, 2017 Accounts receivable $ 1,676 Prepaid expenses 193 Investment in hotel properties, net 120,916 Other assets 22 Assets held for sale, net $ 122,807 Accounts payable and accrued expenses $ 69 Other current liabilities 41 Other liabilities 79 Liabilities of assets held for sale $ 189 Disposals - 2017 In February 2017, the Company sold the Fairmont Newport Beach, located in 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. In June 2017, the Company sold the Marriott Park City, located in 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. Disposals - 2016 In May 2016, the Company sold the leasehold interest in the Sheraton Cerritos, located in California, for net proceeds of $41.2 million. The Company recognized a net gain on the sale of $18.2 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. The following table provides summary results of operations for the hotels sold in 2018, 2017 and 2016, which are included in continuing operations for their respective ownership periods (in thousands): 2018 2017 2016 Total revenues $ 67,065 $ 154,963 $ 195,396 Income before income taxes and discontinued operations (1) $ 8,707 $ 20,869 $ 24,806 Gain on sale of assets $ 116,961 $ 45,474 $ 18,223 (1) Income before income taxes and discontinued operations does not include the gain recognized on the hotel sales. Discontinued Operations In 2017, the Company recognized an additional $7.0 million gain related to its 2013 sale of four hotels and a laundry facility located in Rochester, Minnesota.

Fair Value Measurements and Int

Fair Value Measurements and Interest Rate Derivatives	12 Months Ended
	Dec. 31, 2018
Fair Value Measurements and Interest Rate Derivatives
Fair Value Measurements and Interest Rate Derivatives	5. Fair Value Measurements and Interest Rate Derivatives Fair Value Measurements As of December 31, 2018 and 2017, 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. A fair value measurement is based on the assumptions that market participants would use in pricing an asset or liability in an orderly transaction. The hierarchy for inputs used in measuring fair value is as follows: 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 December 31, 2018 and 2017, the only financial instruments that the Company measures at fair value on recurring bases are its interest rate derivatives, along with a life insurance policy and a related retirement benefit agreement. 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. In both 2018 and 2017, the Company identified indicators of impairment due to continued weakness in the Houston market, and reviewed the Houston hotels for possible impairment. U sing Level 3 measurements, including each hotel’s undiscounted cash flow, which took into account each hotel’s expected cash flow from operations, anticipated holding period and estimated proceeds from disposition, the Company determined that neither hotel’s carrying value was fully recoverable. As such, the Company recorded impairment charges of $1.4 million and $40.1 million in 2018 and 2017, respectively, both of which are included in impairment loss on the Company’s consolidated statements of operations for the years ended December 31, 2018 and 2017. The Company sold the Houston hotels in October 2018 (see Note 4). The following table presents the Company’s assets measured at fair value on a recurring and nonrecurring basis at December 31, 2018 and 2017 (in thousands): Fair Value Measurements at Reporting Date Total Level 1 Level 2 Level 3 December 31, 2018: Interest rate cap derivatives $ — $ — $ — $ — Interest rate swap derivatives 4,789 — 4,789 — Life insurance policy (1) 386 — 386 — Total assets measured at fair value at December 31, 2018 $ 5,175 $ — $ 5,175 $ — December 31, 2017: Houston hotels, net $ 34,473 $ — $ — $ 34,473 Interest rate cap derivatives 4 — 4 — Interest rate swap derivatives 3,390 — 3,390 — Life insurance policy (1) 645 — 645 — Total assets measured at fair value at December 31, 2017 $ 38,512 $ — $ 4,039 $ 34,473 (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 basis at December 31, 2018 and 2017 (in thousands): Fair Value Measurements at Reporting Date Total Level 1 Level 2 Level 3 December 31, 2018: Retirement benefit agreement (1) $ 386 $ — $ 386 $ — Total liabilities measured at fair value at December 31, 2018 $ 386 $ — $ 386 $ — December 31, 2017: Retirement benefit agreement (1) $ 645 $ — $ 645 $ — Total liabilities measured at fair value at December 31, 2017 $ 645 $ — $ 645 $ — (1) Includes the retirement benefit agreement for a former Company associate. The agreement calls for the balance of the retirement benefit agreement 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 $1.6 million through December 31, 2018, 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 in 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 December 31, 2018 and 2017 (in thousands): Estimated Fair Value Asset Strike / Capped Effective Maturity Notional December 31, Hedged Debt Type LIBOR Rate Index Date Date Amount 2018 2017 Hilton San Diego Bayfront (1) Cap 4.250 % 1-Month LIBOR May 1, 2017 May 1, 2019 $ 107,962 $ — $ — Hilton San Diego Bayfront (1) Cap 6.000 % 1-Month LIBOR November 10, 2017 December 9, 2020 $ 220,000 — 4 $85.0 million term loan (2) Swap 1.591 % 1-Month LIBOR October 29, 2015 September 2, 2022 $ 85,000 2,521 2,010 $100.0 million term loan (2) Swap 1.853 % 1-Month LIBOR January 29, 2016 January 31, 2023 $ 100,000 2,268 1,380 $ 4,789 $ 3,394 (1) In November 2017, the Company refinanced the existing loan secured by the Hilton San Diego Bayfront (see Note 7). Coterminous with the loan refinance, the Company purchased a new interest rate cap agreement with a strike rate of 6.0% and an expiration date in December 2020. The fair values of both Hilton San Diego Bayfront cap agreements are included in other assets, net on the accompanying consolidated balance sheets as of both December 31, 2018 and 2017. (2) The fair values of both the $85.0 million and $100.0 million term loan swap agreements are included in other assets, net on the accompanying consolidated balance sheets as of both December 31, 2018 and 2017. Noncash changes in the fair values of the Company’s interest rate derivatives resulted in decreases to interest expense for the years ended December 31, 2018, 2017 and 2016 as follows (in thousands): 2018 2017 2016 Noncash interest on derivatives $ (1,395) $ (1,520) $ (1,426) Fair Value of Debt As of December 31, 2018 and 2017, 77.6% and 77.8%, respectively, of the Company’s outstanding debt had fixed interest rates, including the effects of interest rate swap agreements. The Company uses Level 3 measurements to estimate the fair value of its debt by discounting the future cash flows of each instrument at estimated market rates. The Company’s principal balances and fair market values of its consolidated debt as of December 31, 2018 and 2017 were as follows (in thousands): December 31, 2018 December 31, 2017 Carrying Amount (1) Fair Value Carrying Amount (1) Fair Value Debt $ 982,828 $ 971,082 $ 990,402 $ 997,922 (1) The principal balance of debt is presented before any unamortized deferred financing costs.

Other Assets

Other Assets	12 Months Ended
	Dec. 31, 2018
Other Assets
Other Assets	6. Other Assets Other assets, net consisted of the following (in thousands): December 31, 2018 2017 Property and equipment, net $ 8,426 $ 584 Goodwill 990 990 Deferred rent on straight-lined third-party tenant leases 3,177 3,351 Deferred income tax asset 8,407 9,492 Interest rate derivatives 4,789 3,394 Other receivables 3,209 3,136 Other 819 1,370 Total other assets, net $ 29,817 $ 22,317

Notes Payable

Notes Payable	12 Months Ended
	Dec. 31, 2018
Notes Payable
Notes Payable	7. Notes Payable Notes payable consisted of the following (in thousands): December 31, 2018 2017 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 both December 31, 2018 and 2017. $ 337,828 $ 345,402 Note payable requiring payments of interest only, bearing a blended rate of one-month LIBOR plus 105 basis points; maturing in December 2020 with three one-year extensions. The note is collateralized by a first deed of trust on one hotel property. 220,000 220,000 Unsecured term loan requiring payments of interest only, with a blended interest rate based on a pricing grid with a range of 135 to 220 basis points over one-month LIBOR at December 31, 2018, and a range of 180 to 255 basis points over one-month LIBOR at December 31, 2017, 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 2.941% at December 31, 2018, and 3.391% at December 31, 2017. 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 135 to 220 basis points over one-month LIBOR at December 31, 2018, and a range of 180 to 255 basis points over one-month LIBOR at December 31, 2017, 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 3.203% at December 31, 2018, and 3.653% at December 31, 2017, 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. 120,000 120,000 Unsecured Senior Notes requiring semi-annual payments of interest only, bearing interest at 4.79%; maturing in January 2028. 120,000 120,000 Total notes payable $ 982,828 $ 990,402 Current portion of notes payable $ 7,804 $ 7,420 Less: current portion of deferred financing costs (1,966) (1,943) Carrying value of current portion of notes payable $ 5,838 $ 5,477 Notes payable, less current portion $ 975,024 $ 982,982 Less: long-term portion of deferred financing costs (3,799) (5,700) Carrying value of notes payable, less current portion $ 971,225 $ 977,282 Aggregate future principal maturities and amortization of notes payable at December 31, 2018, are as follows (in thousands): 2019 $ 7,804 2020 304,137 2021 111,247 2022 88,446 2023 103,593 Thereafter 367,601 Total $ 982,828 Notes Payable Transactions - 2018 In October 2018, the Company amended and extended its credit facility agreement and repriced its two unsecured term loans. The amended credit facility agreement provides for a $500.0 million unsecured revolving credit facility, a $100.0 million increase from the previous credit facility. In addition, the Company has the right to increase the amount of the revolving credit facility, or to add term loans, up to an aggregate commitment of $800.0 million subject to lender approval. Under the terms of the amendment, the interest rate pricing grid for the credit facility was reduced from a range of 155 to 230 basis points over the applicable LIBOR to a range of 140 to 225 basis points over the applicable LIBOR, and the credit facility’s maturity date was extended from April 2019 to April 2023. The amendment also repriced the term loans, which bear interest pursuant to a leverage-based pricing grid, from the previous range of 1.80% to 2.55% over the applicable LIBOR to a range of 1.35% to 2.20% over the applicable LIBOR. The spread to LIBOR may vary depending on the Company’s overall leverage as defined by the Company’s credit agreement. Based on the Company’s current leverage, the interest rate of the $85.0 million term loan was reduced from 3.391% under the previous agreement to 2.941% under the current agreement, and the interest rate of the $100.0 million term loan was reduced from 3.653% under the previous agreement to 3.203% under the current agreement. The maturity dates for both term loans remain unchanged. 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. In November 2017, the Company refinanced its existing $219.6 million loan secured by the Hilton San Diego Bayfront with a new $220.0 million loan. The new loan has an initial maturity date of December 2020 and three one-year extension options, subject to the satisfaction of certain conditions. The new loan is interest only and provides for a floating interest rate of one-month LIBOR plus 105 basis points with a 25 basis point increase during the final one-year extension period, if extended. The new loan replaced the existing loan that was scheduled to mature in August 2019 and had a floating interest rate of one-month LIBOR plus 225 basis points. The Company purchased a new interest rate cap agreement in November 2017 for $0.1 million, with a strike rate of 6.0% and an expiration date in December 2020 (see Note 5). Deferred Financing Costs and Losses on Extinguishment of Debt Deferred financing costs and loss on extinguishment of debt for the years ended December 31, 2018, 2017 and 2016 were as follows (in thousands): 2018 (1) 2017 (2) 2016 (3) Payments of deferred financing costs $ 4,012 $ 3,537 $ 1,759 Loss on extinguishment of debt $ 835 $ 824 $ 284 (1) During 2018, the Company paid a total of $4.0 million in deferred financing costs and incurred a loss on extinguishment of debt totaling $0.8 million related to its credit facility amendment and extension and term loans repricing. (2) During 2017, the Company paid a total of $3.5 million in deferred financing costs related to its new $220.0 million loan secured by the Hilton San Diego Bayfront, its Senior Notes and its credit facility. In addition, during 2017, the Company incurred a loss on extinguishment of debt totaling $0.8 million related to its 2017 debt repayment and refinancing. (3) During 2016, the Company paid a total of $1.8 million in deferred financing costs related to its $100.0 million unsecured term loan, its credit facility and its Senior Notes. In addition, during 2016, the Company incurred a loss on extinguishment of debt totaling $0.3 million related to its 2016 debt repayments. Interest Expense Total interest incurred and expensed on the notes payable and capital lease obligations for the years ended December 31, 2018, 2017 and 2016 was as follows (in thousands): 2018 2017 2016 Interest expense on debt and capital lease obligations $ 45,933 $ 46,251 $ 49,509 Noncash interest on derivatives and capital lease obligations, net (1,190) 3,106 (1,426) Amortization of deferred financing costs 2,947 2,409 2,200 Total interest expense $ 47,690 $ 51,766 $ 50,283

Other Current Liabilities and O

Other Current Liabilities and Other Liabilities	12 Months Ended
	Dec. 31, 2018
Other Current Liabilities and Other Liabilities
Other Current Liabilities and Other Liabilities	8. Other Current Liabilities and Other Liabilities Other Current Liabilities Other current liabilities consisted of the following (in thousands): December 31, 2018 2017 Property, sales and use taxes payable $ 15,684 $ 17,842 Income tax payable 125 160 Accrued interest 7,306 6,746 Advance deposits 16,711 13,454 Management fees payable 1,142 1,952 Other 3,994 4,348 Total other current liabilities $ 44,962 $ 44,502 Other Liabilities Other liabilities consisted of the following (in thousands): December 31, 2018 2017 Deferred revenue $ 5,017 $ 5,589 Deferred rent 22,270 19,582 Deferred income tax liability 304 257 Other 3,112 3,561 Total other liabilities $ 30,703 $ 28,989

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2018
Income Taxes
Income Taxes	9. Income Taxes The significant components of the Company’s deferred tax assets and liabilities were as follows (in thousands): December 31, 2018 2017 Deferred Tax Assets: NOL carryover $ 3,711 $ 4,427 Other reserves 1,052 1,301 State taxes and other 3,168 3,232 Depreciation 476 532 Total deferred tax assets 8,407 9,492 Deferred Tax Liabilities: Amortization (53) (63) Deferred revenue (213) (157) Other (38) (37) Total deferred tax liabilities (304) (257) Net deferred tax assets $ 8,103 $ 9,235 At December 31, 2018 and 2017, the net operating loss carryforwards for federal income tax purposes totaled approximately $15.3 million and $15.6 million, respectively. These losses, which begin to expire in 2031, are available to offset future income through 2032. The Company’s income tax (provision) benefit, net was included in the consolidated statements of operations as follows (in thousands): 2018 2017 2016 Current: Federal $ 4 $ (298) $ 1,379 State (639) (1,162) (763) Current income tax (provision) benefit, net (635) (1,460) 616 Deferred: Federal (365) (5,591) 3,797 State (767) (442) 1,638 Change in valuation allowance — 15,268 (5,435) Deferred income tax (provision) benefit, net (1,132) 9,235 — Income tax (provision) benefit, net $ (1,767) $ 7,775 $ 616 The differences between the income tax (provision) calculated at the statutory U.S. federal income tax rate of 21% (35% prior to 2018) and the actual income tax (provision) benefit recorded for continuing operations were as follows (in thousands): 2018 2017 2016 Expected federal tax expense at statutory rate $ (49,899) $ (44,930) $ (47,621) Tax impact of REIT election 49,905 41,169 44,320 Expected tax benefit (provision) of TRS 6 (3,761) (3,301) State income tax expense, net of federal benefit (606) (318) (1,081) Change in valuation allowance — 14,340 6,556 Other permanent items (1,167) (381) (1,558) AMT credit — 1,421 — Effect of rate change — (3,526) — Income tax (provision) benefit, net $ (1,767) $ 7,775 $ 616 In 2017, the Company fully released its valuation allowance primarily related to its federal and state net operating loss carryforwards as the Company determined it was more likely than not that these net deferred tax assets will be realized. The decision to release the valuation allowance was made after management considered all available evidence, both positive and negative, including but not limited to, historical operating results, cumulative income in recent years and forecasted earnings. In addition, in 2017, the Company wrote-down the value of its net deferred tax assets a s a result of the Tax Cuts and Jobs Act (“TCJA”), which lowered the corporate tax rates from a maximum of 35% to a flat rate of 21% effective for tax years beginning after December 31, 2017. Characterization of Distributions For income tax purposes, distributions paid consist of ordinary income, capital gains, return of capital or a combination thereof. For the years ended December 31, 2018, 2017 and 2016, distributions paid per share were characterized as follows (unaudited): 2018 (1) 2017 2016 Amount % Amount % Amount % Common Stock: Ordinary income $ 0.634 91.89 % $ 0.554 75.95 % $ 0.609 89.62 % Capital gain 0.056 8.11 0.176 24.05 0.071 10.38 Return of capital — — — — — — Total $ 0.690 100 % $ 0.730 100 % $ 0.680 100 % Preferred Stock — Series D Ordinary income $ — — % $ — — % $ 0.473 89.62 % Capital gain — — — — 0.055 10.38 Return of capital — — — — — — Total $ — — % $ — — % $ 0.528 100 % Preferred Stock — Series E Ordinary income $ 1.597 91.89 % $ 1.320 75.95 % $ 1.259 89.62 % Capital gain 0.141 8.11 0.418 24.05 0.146 10.38 Return of capital — — — — — — Total $ 1.738 100 % $ 1.738 100 % $ 1.405 100 % Preferred Stock — Series F Ordinary income $ 1.482 91.89 % $ 1.225 75.95 % $ 0.903 89.62 % Capital gain 0.131 8.11 0.388 24.05 0.105 10.38 Return of capital — — — — — — Total $ 1.613 100 % $ 1.613 100 % $ 1.008 100 % (1) Ordinary income in 2018 qualifies for Section 199A treatment per the TCJA.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2018
Stockholders' Equity
Stockholders' Equity	10. Stockholders’ Equity Series D Cumulative Redeemable Preferred Stock In April 2016, the Company redeemed all 4,600,000 shares of its Series D preferred stock at a redemption price of $25.00 per share, plus accrued and unpaid dividends up to, but not including, the redemption date. In addition, a redemption charge of $4.1 million was recognized related to the original issuance costs of the Series D preferred stock, which were previously included in additional paid in capital. After the redemption date, the Company has no outstanding shares of Series D preferred stock, and all rights of the holders of such shares were terminated. Because the redemption of the Series D preferred stock was a redemption in full, trading of the Series D preferred stock on the New York Stock Exchange ceased on the April 6, 2016 redemption date. Series E Cumulative Redeemable Preferred Stock In March 2016, the Company issued 4,600,000 shares of its 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. Upon the occurrence of a change of control, as defined by the Articles Supplementary for Series E preferred stock, holders of the Series E preferred stock may, under certain circumstances, convert their preferred shares into shares of the Company’s common stock. Series F Cumulative Redeemable Preferred Stock In May 2016, the Company issued 3,000,000 shares of its 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. Upon the occurrence of a change of control, as defined by the Articles Supplementary for Series F preferred stock, holders of the Series F preferred stock may, under certain circumstances, convert their preferred shares into shares of the Company’s common stock. Common Stock In February 2014, the Company entered into separate “At the Market” Agreements (the “ATM Agreements”) with Wells Fargo Securities, LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated (the “Managers”). Under the terms of the 2014 ATM Agreements, the Company could from time to time offer and sell shares of the Company’s common stock having an aggregate offering amount of up to $150.0 million. During 2016, the Company received $55.1 million in gross proceeds, and paid $0.9 million in costs, from the issuance of 3,564,047 shares of its common stock in connection with the 2014 ATM Agreements. In February 2017, the Company entered into separate new 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 2017 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 2017, the Company received gross proceeds of $79.4 million, and paid $1.5 million in costs, from the issuance of 4,876,855 shares of its common stock in connection with the 2017 ATM Agreements. During 2018, the Company received gross proceeds of $45.1 million, and paid $0.8 million in costs, from the issuance of 2,590,854 shares of its common stock in connection with the 2017 ATM Agreements. As of December 31, 2018, the Company has $175.5 million available for sale under the 2017 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 December 31, 2018, 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. Dividends and Distributions The Company declared dividends per share on its Series D preferred stock, Series E preferred stock and Series F preferred stock, along with distributions per share on its common stock during 2018, 2017 and 2016 as follows: 2018 2017 2016 Series D preferred stock $ — $ — $ 0.527778 Series E preferred stock $ 1.7375 $ 1.7375 $ 1.404450 Series F preferred stock $ 1.6125 $ 1.6125 $ 1.007850 Common stock $ 0.6900 $ 0.7300 $ 0.680000

Long-Term Incentive Plan

Long-Term Incentive Plan	12 Months Ended
	Dec. 31, 2018
Long-Term Incentive Plan
Long-Term Incentive Plan	11. Long-Term Incentive Plan The Company’s Long-Term Incentive Plan (“LTIP”) provides for the granting to directors, officers and eligible employees awards that may be made in the form of incentive or nonqualified stock options, restricted shares or units, performance shares or units, share appreciation rights, or any combination thereof. The Company has reserved 12,050,000 common shares for issuance under the LTIP, and 4,419,784 shares remain available for future issuance as of December 31, 2018. At December 31, 2018, there were no stock options, restricted units, performance shares or units, or share appreciation rights issued or outstanding under the LTIP. Stock Grants Restricted shares granted pursuant to the Company’s LTIP generally vest over a period of three years from the date of grant. Should a stock grant be forfeited prior to its vesting, the shares covered by the stock grant are added back to the LTIP and remain available for future issuance. Shares of common stock tendered or withheld to satisfy the grant or exercise price or tax withholding obligations upon the vesting of a stock grant, however, are not added back to the LTIP. 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. The Company has elected to account for forfeitures as they occur. The Company’s amortization expense and forfeitures related to restricted shares for the years ended December 31, 2018, 2017 and 2016 were as follows (in thousands): 2018 2017 2016 Amortization expense, including forfeitures $ 9,007 $ 8,042 $ 7,157 In addition, the Company capitalizes compensation costs related to restricted shares granted to certain employees whose work is directly related to the Company’s capital investment in its hotels. During 2018, 2017 and 2016, these capitalized costs totaled $0.4 million, $0.5 million and $0.6 million, respectively. The following is a summary of non-vested restricted stock grant activity: 2018 2017 2016 Weighted Weighted Weighted Average Average Average Shares Price Shares Price Shares Price Outstanding at beginning of year 1,175,049 $ 14.12 1,095,908 $ 13.36 986,345 $ 14.33 Granted 617,595 $ 15.84 654,266 $ 15.11 816,880 $ 12.33 Vested (602,091) $ 14.37 (541,827) $ 13.78 (605,641) $ 13.39 Forfeited (12,793) $ 14.39 (33,298) $ 14.10 (101,676) $ 14.32 Outstanding at end of year 1,177,760 $ 14.89 1,175,049 $ 14.12 1,095,908 $ 13.36 As of December 31, 2018, $9.6 million in compensation expense related to non-vested restricted stock grants remains to be recognized over a weighted-average period of 16 months. 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 were not exercised prior to their April 2018 expiration date.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2018
Commitments and Contingencies
Commitments and Contingencies	12. Commitments and Contingencies Management Agreements Management agreements with the Company’s third-party hotel managers require the Company to pay between 1.75% and 3.0% 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 years ended December 31, 2018, 2017 and 2016 were included in other property-level expenses on the Company’s consolidated statements of operations as follows (in thousands): 2018 2017 2016 Basic management fees $ 31,947 $ 33,318 $ 33,109 Incentive management fees 7,169 6,301 6,071 Total basic and incentive management fees $ 39,116 $ 39,619 $ 39,180 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 years ended December 31, 2018, 2017 and 2016 were included in franchise costs on the Company’s consolidated statements of operations as follows (in thousands): 2018 2017 2016 Franchise assessments (1) $ 25,966 $ 26,902 $ 26,399 Franchise royalties 9,457 9,779 10,248 Total franchise costs $ 35,423 $ 36,681 $ 36,647 (1) Includes advertising, reservation and frequent guest club assessments. Renovation and Construction Commitments At December 31, 2018, the Company had various contracts outstanding with third parties in connection with the renovation of certain of its hotel properties. The remaining commitments under these contracts at December 31, 2018 totaled $63.6 million. Capital Leases The Hyatt Centric Chicago Magnificent Mile is subject to a building lease, which expires in December 2097. The Company evaluated the terms of the lease agreement and determined the lease to be a capital lease. The Courtyard by Marriott Los Angeles is subject to a ground lease, which expires in August 2096. T he Company evaluated the terms of the lease agreement and determined the lease to be a capital lease. The capital lease assets were included in investment in hotel properties, net on the Company’s consolidated balance sheets as follows (in thousands): December 31, 2018 2017 Gross capital lease asset - buildings and improvements $ 58,799 $ 58,799 Gross capital lease asset - land 6,605 6,605 Gross capital lease assets 65,404 65,404 Accumulated depreciation (9,677) (8,208) Net capital lease assets $ 55,727 $ 57,196 Future minimum lease payments under for the Company’s capital leases together with the present value of the net minimum lease payments as of December 31, 2018 are as follows (in thousands): 2019 $ 2,357 2020 2,357 2021 2,389 2022 2,453 2023 2,453 Thereafter 136,220 Total minimum lease payments (1) 148,229 Less: Amount representing interest (2) (121,219) Present value of net minimum lease payments (3) $ 27,010 (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. The Company recorded nominal percentage rent in 2018, 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 reflected in the Company’s consolidated balance sheet as of December 31, 2018 as a current obligation of $1,000, which is included in accounts payable and accrued expenses, and as a long-term obligation of $27.0 million, which is included in capital lease obligations, less current portion. Ground, Building and Air Leases During 2018, 2017 and 2016, certain of the Company’s hotels were obligated to unaffiliated third parties under the terms of ground, building and air leases as follows: 2018 2017 2016 Number of hotels with ground, building or air leases 5 6 6 Number of ground leases (1) 4 6 6 Number of building leases (2) 1 1 1 Number of air leases 1 1 1 Total number of ground, building and air leases 6 8 8 (1) Both 2017 and 2016 include ground leases related to the Hyatt Regency Newport Beach, which the Company sold in July 2018, as well as the land underlying the JW Marriott New Orleans, which the Company purchased in July 2018. One of the ground leases is considered by the Company to be a capital lease, as noted above. (2) The building lease is considered by the Company to be a capital lease, as noted above. At December 31, 2018, the ground, building and air lease agreements mature in dates ranging from 2044 through 2097, excluding renewal options. Total rent expense incurred pursuant to ground, building and air operating lease agreements for the years ended December 31, 2018, 2017 and 2016 was included in property tax, ground lease and insurance in the Company’s consolidated statements of operations as follows (in thousands): 2018 2017 2016 Minimum rent, including straight-line adjustments $ 7,358 $ 8,929 $ 9,140 Percentage rent (1) 6,921 6,351 9,394 Total $ 14,279 $ 15,280 $ 18,534 (1) Several of the Company’s hotels pay percentage rent, which is calculated on operating revenues above certain thresholds. At December 31, 2018, the Company was obligated to an unaffiliated third party under the terms of an office space lease on the corporate facility, which began in August 2018 and expires in 2028. Rent expense, including straight-line adjustments, incurred pursuant to the corporate facility lease and the Company’s previous corporate facility sublease, which expired in 2018, are included in corporate overhead expense, and totaled $1.2 million in 2018, and $0.2 million in both 2017 and 2016. Future minimum payments under the terms of the ground and air operating leases, as well as the lease on the corporate facility at December 31, 2018 are as follows (in thousands): 2019 $ 8,159 2020 8,441 2021 8,486 2022 8,531 2023 8,576 Thereafter 159,190 Total $ 201,383 Employment Agreements As of December 31, 2018, the Company had employment agreements with certain executive employees, which expire in March 2019, and automatically renew for successive one-year periods, absent written notice by either party. The terms of the agreements stipulate payments of base salaries and bonuses. The Company’s approximate minimum future obligations under employment agreements through their expiration dates totaled $0.6 million as of December 31, 2018. 401(k) Savings and Retirement Plan The Company’s employees may participate, subject to eligibility, in the Company’s 401(k) Savings and Retirement Plan (the “401(k) Plan”). Qualified employees are eligible to participate in the 401(k) Plan after attaining 21 years of age and after the first of the month following the completion of six calendar months of employment. Three percent of eligible employee annual base earnings are contributed by the Company as a Safe Harbor elective contribution. Safe Harbor contributions made by the Company totaled $0.2 million in each of the years 2018, 2017 and 2016, and were included in corporate overhead expense. The Company is also responsible for funding various retirement plans at certain hotels operated by its management companies. Other property-level expenses on the Company’s consolidated statements of operations includes matching contributions into these various retirement plans of $1.6 million in both 2018 and 2016, and $1.5 million in 2017. Collective Bargaining Agreements The Company is subject to exposure to collective bargaining agreements at certain hotels operated by its management companies. At December 31, 2018, approximately 34.8% of workers employed by the Company’s third-party managers were covered by such collective bargaining agreements. Concentration of Risk The concentration of the Company’s hotels in California, Hawaii, Illinois, Massachusetts, the greater Washington DC area and Florida exposes the Company’s business to economic and severe weather conditions, competition and real and personal property tax rates unique to these locales. As of December 31, 2018, 16 of the 21 hotels were geographically concentrated as follows: Percentage of Total 2018 Number of Hotels Total Rooms Consolidated Revenue California % % Hawaii % % Illinois % % Massachusetts % % Greater Washington DC area % % Florida % % 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 December 31, 2018, the Company had $0.4 million of outstanding irrevocable letters of credit to guarantee 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 December 31, 2018. 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.

Quarterly Operating Results (Un

Quarterly Operating Results (Unaudited)	12 Months Ended
	Dec. 31, 2018
Quarterly Operating Results (Unaudited)
Quarterly Operating Results (Unaudited)	13. Quarterly Operating Results (Unaudited) The Company’s consolidated quarterly results for the years ended December 31, 2018 and 2017 are as follows (in thousands): First Second Third Fourth Quarter Quarter Quarter Quarter Revenues 2018 $ 271,446 $ 317,447 $ 289,308 $ 280,852 2017 $ 280,743 $ 318,796 $ 303,909 $ 290,190 Operating income 2018 $ 26,441 $ 61,855 $ 48,088 $ 45,506 2017 $ 30,282 $ 62,703 $ 13,072 $ 34,948 Net income 2018 $ 38,455 $ 51,262 $ 91,586 $ 77,756 2017 $ 63,827 $ 51,415 $ 17,082 $ 20,680 Income attributable to common stockholders per share — basic and diluted 2018 $ 0.15 $ 0.20 $ 0.38 $ 0.32 2017 $ 0.27 $ 0.21 $ 0.05 $ 0.07 Income attributable to common stockholders per share is computed independently for each of the quarters presented and therefore may not sum to the annual amount for the year.

Schedule III-Real Estate and Ac

Schedule III-Real Estate and Accumulated Depreciation	12 Months Ended
	Dec. 31, 2018
Schedule III-Real Estate and Accumulated Depreciation
SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure	SUNSTONE HOTEL INVESTORS, INC. SCHEDULE II DECEMBER 31, 2018 (In thousands) Cost Capitalized Gross Amount at Initial costs Subsequent to Acquisition December 31, 2018 (1) Bldg. and Bldg. and Bldg. and Accum. Date Depr. Encmbr. Land Impr. Land Impr. Land Impr. Totals Depr. Acq./Constr. Life Boston Park Plaza $ — (2) $ 58,527 $ 170,589 $ — $ 117,443 $ 58,527 $ 288,032 $ 346,559 $ 55,307 2013 5-35 Courtyard by Marriott Los Angeles — (2) — 8,446 6,605 14,124 6,605 22,570 29,175 12,345 1999 5-35 Embassy Suites Chicago — 79 46,886 6,348 23,016 6,427 69,902 76,329 33,993 2002 5-35 Embassy Suites La Jolla 60,489 27,900 70,450 — 16,218 27,900 86,668 114,568 34,848 2006 5-35 Hilton Garden Inn Chicago Downtown/Magnificent Mile — (2) 14,040 66,350 — 9,734 14,040 76,084 90,124 10,893 2012 5-50 Hilton New Orleans St. Charles — (2) 3,698 53,578 — 9,375 3,698 62,953 66,651 8,023 2013 5-35 Hilton San Diego Bayfront 220,000 — 424,992 — 11,021 — 436,013 436,013 62,764 2011 5-57 Hilton Times Square 79,656 — 221,488 — 32,158 — 253,646 253,646 106,699 2006 5-35 Hyatt Centric Chicago Magnificent Mile — (2) — 91,964 — 19,492 — 111,456 111,456 25,759 2012 5-40 Hyatt Regency San Francisco — (2) 116,140 131,430 — 50,310 116,140 181,740 297,880 41,479 2013 5-35 JW Marriott New Orleans 83,649 — 73,420 15,147 34,336 15,147 107,756 122,903 20,040 2011 5-35 Marriott Boston Long Wharf — (2) 51,598 170,238 — 68,585 51,598 238,823 290,421 83,713 2007 5-35 Marriott Portland — (2) 5,341 20,705 — 7,818 5,341 28,523 33,864 15,371 2000 5-35 Wailea Beach Resort — (2) 119,707 194,137 — 104,934 119,707 299,071 418,778 36,414 2014 5-40 Oceans Edge Resort & Marina — 92,510 74,361 — 523 92,510 74,884 167,394 3,156 2017 5-40 Renaissance Harborplace — (2) 25,085 102,707 — 27,060 25,085 129,767 154,852 56,060 2005 5-35 Renaissance Los Angeles Airport — (2) 7,800 52,506 — 18,659 7,800 71,165 78,965 24,845 2007 5-35 Renaissance Long Beach — (2) 10,437 37,300 — 25,515 10,437 62,815 73,252 24,338 2005 5-35 Renaissance Orlando at SeaWorld ® — (2) — 119,733 30,717 42,303 30,717 162,036 192,753 69,304 2005 5-35 Renaissance Washington DC 114,034 14,563 132,800 — 46,939 14,563 179,739 194,302 77,534 2005 5-35 Renaissance Westchester — (2) 5,751 17,069 — 22,596 5,751 39,665 45,416 12,743 2010 5-35 $ 557,828 $ 553,176 $ 2,281,149 $ 58,817 $ 702,159 $ 611,993 $ 2,983,308 $ 3,595,301 $ 815,628 (1) The aggregate cost of properties for federal income tax purposes is approximately $4.0 billion (unaudited) at December 31, 2018. (2) Hotel is pledged as collateral by the Company’s credit facility. As of December 31, 2018, the Company has no outstanding indebtedness under its credit facility. The following is a reconciliation of real estate assets and accumulated depreciation (in thousands): Hotel Properties 2018 2017 2016 Reconciliation of land and buildings and improvements: Balance at the beginning of the year $ 3,654,623 $ 3,667,466 $ 3,652,222 Additions during year: Acquisitions 15,147 166,871 — Improvements 96,481 91,067 159,786 Impairment loss (1,797) (67,345) — Changes in reporting presentation 171,675 (53,047) (112,023) Dispositions (340,828) (150,389) (32,519) Balance at the end of the year $ 3,595,301 $ 3,654,623 $ 3,667,466 Reconciliation of accumulated depreciation: Balance at the beginning of the year $ 776,077 $ 803,913 $ 707,737 Depreciation 108,175 112,176 107,409 Changes in reporting presentation 56,872 (87,427) — Retirement (125,496) (52,585) (11,233) Balance at the end of the year $ 815,628 $ 776,077 $ 803,913

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2018
Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements as of December 31, 2018 and 2017, and for the years ended December 31, 2018, 2017 and 2016, include the accounts of the Company, the Operating Partnership, the TRS Lessee and their controlled subsidiaries. All significant intercompany balances and transactions have been eliminated. If the Company determines that it has an interest in a variable interest entity, the Company will consolidate the entity when it is determined to be the primary beneficiary of the entity. 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 accounting principles generally accepted in the United States (“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.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents includes cash on hand and in various bank accounts plus credit card receivables and all short-term investments with an original maturity of three months or less. The Company maintains cash and cash equivalents and certain other financial instruments with various financial institutions. These financial institutions are located throughout the country and the Company’s policy is designed to limit exposure to any one institution. The Company performs periodic evaluations of the relative credit standing of those financial institutions that are considered in the Company’s investment strategy. At December 31, 2018 and 2017, the Company had amounts in banks that were in excess of federally insured amounts.
Restricted Cash	Restricted Cash Restricted cash is comprised of reserve accounts for debt service, interest reserves, seasonality reserves, capital replacements, ground leases and property taxes. These restricted funds are subject to supervision and disbursement approval by certain of the Company’s lenders and/or hotel managers. Restricted cash may also include earnest money received from a buyer of one of the Company’s hotels and held in escrow until the sale is complete.
Accounts Receivable	Accounts Receivable Accounts receivable primarily represents receivables from hotel guests who occupy hotel rooms and utilize hotel services. Accounts receivable also includes, among other things, receivables from tenants who lease space in the Company’s hotels. The Company maintains an allowance for doubtful accounts sufficient to cover potential credit losses.
Inventories	Inventories Inventories, consisting primarily of food and beverages at the hotels, are stated at the lower of cost or market, with cost determined on a method that approximates first-in, first-out basis.
Acquisitions of Hotel Properties and Other Entities	Acquisitions of Hotel Properties and Other Entities Accounting for the acquisition of a hotel property or other entity requires an allocation of the purchase price to the assets acquired and the liabilities assumed in the transaction at their respective relative fair values for an asset acquisition or at their estimated fair values for a business combination. The most difficult estimations of individual fair values are those involving long-lived assets, such as property, equipment, intangible assets and any capital lease obligations that are assumed as part of the acquisition of a leasehold interest. When the Company acquires a hotel property or other entity, it uses all available information to make these fair value determinations, and engages independent valuation specialists to assist in the fair value determinations of the long-lived assets acquired and the liabilities assumed. Due to the inherent subjectivity in determining the estimated fair value of long-lived assets, the Company believes that the recording of acquired assets and liabilities is a critical accounting policy. In addition, the acquisition of a hotel property or other entity requires an analysis of the transaction to determine if it qualifies as the purchase of a business or an asset. If the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, then the transaction is an asset acquisition. Transaction costs associated with asset acquisitions are capitalized and subsequently depreciated over the life of the related asset, while the same costs associated with a business combination are expensed as incurred and included in corporate overhead on the Company’s consolidated statements of operations. Also, asset acquisitions are not subject to a measurement period, as are business combinations.
Investments in Hotel Properties	Investments in Hotel Properties Investments in hotel properties, including land, buildings, furniture, fixtures and equipment (“FF&E”) and identifiable intangible assets are recorded at fair value upon acquisition. Property and equipment purchased after the hotel acquisition date is recorded at cost. Replacements and improvements are capitalized, while repairs and maintenance are expensed as incurred. Upon the sale or retirement of a fixed asset, the cost and related accumulated depreciation is removed from the Company’s accounts and any resulting gain or loss is included in the statements of operations. Depreciation expense is based on the estimated life of the Company’s assets. The life is based on a number of assumptions, including the cost and timing of capital expenditures to maintain and refurbish the Company’s hotels, as well as specific market and economic conditions. Hotel properties, including related assets under capital leases, are depreciated using the straight-line method over estimated useful lives primarily ranging from five to 40 years for buildings and improvements and three to 12 years for FF&E. Intangible assets are amortized using the straight-line method over their estimated useful life or over the length of the related agreement, whichever is shorter. The Company’s investment in hotel properties, net also includes initial franchise fees which are recorded at cost and amortized using the straight-line method over the terms of the franchise agreements ranging from 14 to 27 years. All other franchise fees that are based on the Company’s results of operations are expensed as incurred. While the Company believes its estimates are reasonable, a change in the estimated lives could affect depreciation expense and net income or the gain or loss on the sale of any of the Company’s hotels. The Company has not changed the useful lives of any of its assets during the periods discussed. Impairment losses are recorded on long-lived assets to be held and used by the Company when indicators of impairment are present and the future undiscounted net cash flows expected to be generated by those assets, based on the Company’s anticipated investment horizon, are less than the assets’ carrying amount. If such assets are considered to be impaired, the related assets are adjusted to their estimated fair value and an impairment loss is recognized. The impairment loss recognized is measured by the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. The Company performs a fair value assessment, using a discounted cash flow analysis to estimate the fair value of its hotel properties, taking into account each property’s expected cash flow from operations, the Company’s estimate of how long it will continue to own each property and estimated proceeds from the disposition of the property. The factors addressed in determining estimated proceeds from disposition include anticipated operating cash flow in the year of disposition and terminal capitalization rate. The Company’s judgement is required in determining the discount rate applied to estimated cash flows, the estimated growth of revenues and expenses, net operating income and margins, the need for capital expenditures, as well as specific market and economic conditions. Based on the Company’s review, two hotel properties were impaired during 2018 and 2017 (see Note 5), and no hotel properties were impaired during 2016. Fair value represents the amount at which an asset could be bought or sold in a current transaction between willing parties, that is, other than a forced or liquidation sale. The estimation process involved in determining if assets have been impaired and in the determination of fair value is inherently uncertain because it requires estimates of current market yields as well as future events and conditions. Such future events and conditions include economic and market conditions, as well as the availability of suitable financing. The realization of the Company’s investment in hotel properties is dependent upon future uncertain events and conditions and, accordingly, the actual timing and amounts realized by the Company may be materially different from their estimated fair values.
Assets Held for Sale	Assets Held for Sale The Company considers a hotel held for sale if it is probable that the sale will be completed within twelve months, among other requirements. A sale may be considered to be probable once the buyer completes its due diligence of the asset, there is an executed purchase and sale agreement between the Company and the buyer, the buyer waives any closing contingencies, there are no third party approvals necessary and the Company has received a substantial non-refundable deposit. Depreciation ceases when a property is held for sale. Should an impairment loss be required for assets held for sale, the related assets are adjusted to their estimated fair values, less costs to sell. If the sale of the hotel represents a strategic shift that will have a major effect on the Company’s operations and financial results, the hotel is included in discontinued operations, and operating results are removed from income from continuing operations and reported as discontinued operations. The operating results for any such assets for any prior periods presented must also be reclassified as discontinued operations. As of December 31, 2017, the Company’s Marriott Philadelphia and Marriott Quincy were considered held for sale, and subsequently sold in January 2018 (see Note 4). Based on the criteria noted above, neither of these hotels was included in discontinued operations. No hotels were considered held for sale as of December 31, 2018.
Deferred Financing Costs	Deferred Financing Costs Deferred financing costs consist of loan fees and other financing costs related to the Company’s outstanding indebtedness and credit facility commitments, and are amortized to interest expense over the terms of the related debt or commitment. If a loan is refinanced or paid before its maturity, any unamortized deferred financing costs will generally be expensed unless specific rules are met that would allow for the carryover of such costs to the refinanced debt. Deferred financing costs related to the Company’s undrawn credit facility are included on the Company’s consolidated balance sheets as an asset, and are amortized ratably over the term of the line of credit arrangement, regardless of whether there are any outstanding borrowings on the line of credit arrangement. Deferred financing costs related to the Company’s outstanding debt are included on the Company’s consolidated balance sheets as a contra-liability (see Note 7), and subsequently amortized ratably over the term of the related debt.
Interest Rate Derivatives	Interest Rate Derivatives The Company’s objective in holding interest rate derivatives is to manage its exposure to the interest rate risks related to its floating rate debt. To accomplish this objective, the Company uses interest rate caps and swaps, none of which qualifies for effective hedge accounting treatment. The Company records interest rate caps and swaps on the balance sheet at their fair value. Changes in the fair value of derivatives are recorded each period in the consolidated statements of operations.
Revenue Recognition	Revenue Recognition Revenues are recognized when control of the promised goods or services is transferred to hotel guests, which is generally defined as the date upon which a guest occupies a room and/or utilizes the hotel’s services. Room revenue is recognized over a guest’s stay at a previously agreed upon daily rate. Additionally, some of the Company’s hotel rooms are booked through independent internet travel intermediaries. If the guest pays the independent internet travel intermediary directly, revenue for the room is recognized by the Company at the price the Company sold the room to the independent internet travel intermediary, less any discount or commission paid. If the guest pays the Company directly, revenue for the room is recognized by the Company on a gross basis, with the related discount or commission recognized in room expense. A majority of the Company’s hotels participate in frequent guest programs sponsored by the hotel brand owners whereby the hotel allows guests to earn loyalty points during their hotel stay. The Company expenses charges associated with these programs as incurred, and recognizes revenue at the amount it will receive from the brand when a guest redeems their loyalty points by staying at one of the Company’s hotels. In addition, some contracts for rooms or food and beverage services require an advance deposit, which the Company records as deferred revenue (or a contract liability) and recognizes once the performance obligations are satisfied. Food and beverage revenue and other ancillary services revenue are generated when a customer chooses to purchase goods or services separately from a hotel room. These revenue streams are recognized during the time the goods or services are provided to the customer at the amount the Company expects to be entitled to in exchange for those goods or services. For those ancillary services provided by third parties, the Company assesses whether it is the principal or the agent. If the Company is the principal, revenue is recognized based upon the gross sales price. If the Company is the agent, revenue is recognized based upon the commission earned from the third party. Additionally, the Company collects sales, use, occupancy and other similar taxes at its hotels. These taxes are collected from customers at the time of purchase, but are not included in revenue. The Company records a liability upon collection of such taxes from the customer, and relieves the liability when payments are remitted to the applicable governmental agency. Trade receivables and contract liabilities consisted of the following (in thousands): December 31, December 31, 2018 2017 Trade receivables, net (1) $ 18,982 $ 20,773 Contract liabilities (2) $ 16,711 $ 13,454 (1) Trade receivables are included in accounts receivable, net on the accompanying consolidated balance sheets. (2) Contract liabilities consist of advance deposits, and are included in other current liabilities on the accompanying consolidated balance sheets. Of the amount outstanding at December 31, 2017, approximately $13.2 million was recognized in revenue during the year ended December 31, 2018.
Advertising and Promotion Costs	Advertising and Promotion Costs Advertising and promotion costs are expensed when incurred. Advertising and promotion costs represent the expense for advertising and reservation systems under the terms of the hotel franchise and brand management agreements and general and administrative expenses that are directly attributable to advertising and promotions.
Stock Based Compensation	Stock Based Compensation 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.
Income Taxes	Income Taxes The Company is subject to certain state and local taxes on its income and property, and to federal income and excise taxes on its undistributed taxable income. In addition, the TRS Lessee, which leases the Company’s hotels from the Operating Partnership, is subject to federal and state income taxes. The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and for net operating loss, capital loss and tax credit carryforwards. The deferred tax assets and liabilities are measured using the enacted income tax rates in effect for the year in which those temporary differences are expected to be realized or settled. The effect on the deferred tax assets and liabilities from a change in tax rates is recognized in earnings in the period when the new rate is enacted. However, deferred tax assets are recognized only to the extent that it is more likely than not that they will be realized based on consideration of all available evidence, including the future reversals of existing taxable temporary differences, future projected taxable income and tax planning strategies. Valuation allowances are provided if, based upon the weight of the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company reviews any uncertain tax positions and, if necessary, records the expected future tax consequences of uncertain tax positions in its consolidated financial statements. Tax positions not deemed to meet the “more-likely-than-not” threshold are recorded as a tax benefit or expense in the current year. The Company’s management is required to analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions, which includes federal and certain states. The Company recognizes any penalties and interest related to unrecognized tax benefits in income tax expense in its consolidated statements of operations.
Comprehensive Income	Comprehensive Income The Company does not have any comprehensive income other than what is included in net income. If the Company has any comprehensive income in the future such that a statement of comprehensive income would be necessary, the Company will include such statement in one continuous consolidated statement of operations.
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, revenues, expenses and net income or loss from the less-than-wholly-owned subsidiary are reported at their consolidated amounts, 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 statements of equity include beginning balances, activity for the period and ending balances for each component of stockholders’ equity, noncontrolling interest and total equity. At December 31, 2018, 2017 and 2016, the noncontrolling interest reported in the Company’s financial statements consisted of a third-party’s 25.0% ownership interest in the Hilton San Diego Bayfront.
Dividends	Dividends Under current federal income tax laws related to REITs, the Company is required to distribute at least 90% of its net taxable income to its stockholders. Currently, the Company pays quarterly cash dividends to its common stockholders, as well as to the preferred stockholders of its 6.95% Series E Cumulative Redeemable Preferred Stock (“Series E preferred stock”) and its 6.45% Series F Cumulative Preferred Stock (“Series F preferred stock”) as declared by the Company’s board of directors. Prior to its redemption date in April 2016, the Company also paid quarterly cash dividends to the preferred stockholders of its 8.0% Series D Cumulative Redeemable Preferred Stock (“Series D preferred stock”) as declared by the Company’s board of directors. The Company’s ability to pay dividends is dependent on the receipt of distributions from the Operating Partnership.
Earnings Per Share	Earnings Per Share The Company applies the two-class method when computing its earnings per share. 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. Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are considered participating securities and are included in the computation of earnings per share. 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 (before their expiration in April 2018), 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): Year Ended Year Ended Year Ended December 31, 2018 December 31, 2017 December 31, 2016 Numerator: Net income $ 259,059 $ 153,004 $ 140,677 Income from consolidated joint venture attributable to noncontrolling interest (8,614) (7,628) (6,480) Preferred stock dividends and redemption charge (12,830) (12,830) (15,964) Distributions paid on unvested restricted stock compensation (814) (860) (754) Undistributed income allocated to unvested restricted stock compensation (422) — — Numerator for basic and diluted income attributable to common stockholders $ 236,379 $ 131,686 $ 117,479 Denominator: Weighted average basic and diluted common shares outstanding 225,924 221,898 214,966 Basic and diluted income attributable to common stockholders per common share $ 1.05 $ 0.59 $ 0.55 The Company’s unvested restricted shares associated with its long-term incentive plan and shares associated with common stock options, as applicable, have been excluded from the above calculation of earnings per share for the years ended December 31, 2018, 2017 and 2016, as their inclusion would have been anti-dilutive.
Segment Reporting	Segment Reporting The Company considers each of its hotels to be an operating segment, and allocates resources and assesses the operating performance for each hotel. Because all of the Company’s hotels have similar economic characteristics, facilities and services, the hotels have been aggregated into a single reportable segment, hotel ownership.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“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 applies 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. 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. 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. The Company adopted ASU No. 2014-09, along with the related clarifications and amendments in ASU No. 2016-08 and ASU No. 2016-12, in January 2018, using the modified retrospective approach to contracts that were not complete as of January 1, 2018. Due to the short-term nature of the Company’s revenue streams, the adoption of ASU No. 2014-09 did not have a material impact on the amount and timing of revenue recognized from rooms, food and beverage and other ancillary hotel services . In addition, the Company determined that presenting its revenue streams disaggregated into the categories of rooms, food and beverage, and other on its consolidated statements of operations depicts how the nature, timing and uncertainty of revenue and cash flows are affected by economic factors, and that no further disaggregation is needed. See Revenue Recognition in Note 2 for additional disclosures. 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. A lessee will be required to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similarly to existing guidance for operating leases today. ASU No. 2016-02 also eliminates existing real estate-specific provisions and changes the guidance on sale-leaseback transactions, initial direct costs and lease executory costs for all entities. 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 initially required a modified retrospective approach for leases that exist or are entered into after the date of initial application, with an option to use certain transition relief. In January 2018, the FASB issued Accounting Standards Update No. 2018-01, “ Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842 ” (“ASU No. 2018-01”), which allows a company to elect a practical expedient regarding land easements. By electing this practical expedient, the Company will not be required to reassess whether a land easement not previously accounted for as a lease would now be a lease. In July 2018, the FASB issued Accounting Standards Update No. 2018-10, “ Codification Improvements to Topic 842, Leases ” (“ASU No. 2018-10”) and Accounting Standards Update No. 2018-11, “ Leases (Topic 842): Targeted Improvements ” (“ASU No. 2018-11”), both of which provide practical expedients that the Company intends to adopt. By adopting these practical expedients, the Company will not be required to reassess (i) whether an expired or existing contract meets the definition of a lease; (ii) the lease classification at the adoption date for existing leases; and (iii) whether costs previously capitalized as initial direct costs would continue to be amortized . In addition, the Company intends to adopt the lessor practical expedient provided by ASU No. 2018-11 whereby lessors, by class of underlying asset, will not be required to separate nonlease components from the associated lease component, if certain conditions are met. The Company does not intend to elect the hindsight practical expedient. ASU No. 2018-11 also adds a transition option to the new leases standard that allows entities to apply the transition provisions of the new standard at its adoption date instead of the earliest comparative period presented in its financial statements. In December 2018, the FASB issued Accounting Standards Update No. 2018-20, “ Leases (Topic 842): Narrow-Scope Improvements for Lessors ” (“ASU No. 2018-20”), which allows lessors to make certain policy elections related to sales and other similar taxes. In addition, ASU No. 2018-20 requires lessors to (i) exclude lessor costs paid directly by lessees to third parties on the lessor’s behalf from variable payments and therefore variable lease revenue; and (ii) include lessor costs paid by the lessor and reimbursed by the lessee in the measurement of variable lease revenue and the associated expense. ASU No. 2018-20 also clarifies that when lessors allocate variable payments to the lease and non-lease components, they are required to follow the recognition guidance in the new leases standard for the lease component and other applicable guidance for the non-lease component. The Company intends to adopt ASU No. 2016-02, along with its related clarifications and amendments, on the effective date of January 1, 2019, and is finalizing its evaluation of the potential changes from this standard to its future financial reporting and disclosures, as well as designing and implementing related processes and controls. The Company expects the standard to result in recording a right of use asset and the related lease liability of between $41 million and $51 million related to its operating leases. Any changes to discount rates, lease terms or other variables may have a significant effect on the calculation of this recorded amount. The Company does not expect the adoption of the standard to result in a cumulative effect adjustment, or that the adoption of the standard will have a material impact on its results of operations or liquidity. 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. In November 2018, the FASB issued Accounting Standards Update No. 2018-19, “ Codification Improvements to Topic 326, Financial Instruments-Credit Losses ” (“ASU No. 2018-19”), which clarifies that operating lease receivables accounted for under ASC 842 are not in the scope of ASU No. 2016-13. Both ASU No. 2016-13 and ASU No. 2018-19 are effective during the first quarter of 2020. Both standards will require a modified retrospective approach, with early adoption permitted during the first quarter of 2019. The Company is currently evaluating the impact that ASU No. 2016-13 and ASU No. 2018-19 will have 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 requires 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 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 guidance requires a reconciliation of the totals in the statement of cash flows to the related caption in the balance sheet. The Company adopted ASU No. 2016-18 in January 2018. As a result, amounts included in restricted cash on the Company’s consolidated balance sheets are included with cash and cash equivalents on the consolidated statements of cash flows. A reconciliation of the totals in the statements of cash flows to the related caption in the balance sheets has been added as a supplemental disclosure to the Company’s consolidated statements of cash flows. The adoption of this standard did 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. The Company adopted ASU No. 2017-01 in January 2018. The Company will analyze future hotel acquisitions and sales to determine if the transaction qualifies as the purchase or disposition 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, with early adoption permitted, and the guidance is to be applied prospectively. The Company elected to early adopt ASU No. 2017-04 in January 2018, with no 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. The Company adopted ASU No. 2017-09 in January 2018 with no impact to its consolidated financial statements. In August 2018, the FASB issued Accounting Standards Update No. 2018-13, “ Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement ” (“ASU No. 2018-13”), which eliminates, adds and modifies certain disclosure requirements for fair value measurements. Entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but public companies will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements in addition to a narrative description of the uncertainty of significant Level 3 fair value measurements as of the reporting date. ASU No. 2018-13 will become effective in the first quarter of 2020, with early adoption permitted of either the entire standard or only the provisions that eliminate or modify the requirements. The guidance on changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 measurements, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty is applied prospectively. All other amendments should be applied retrospectively. The Company adopted ASU No. 2018-13 in its entirety in September 2018 with no impact to its consolidated financial statements.

Organization and Description _2

Organization and Description of Business (Tables)	12 Months Ended
	Dec. 31, 2018
Organization and Description of Business
Schedule of number of hotels managed by each third-party manager	As of December 31, 2018, the Company had interests in 21 hotels (the “21 hotels”), currently held for investment. The Company’s third-party managers included the following: Number of Hotels Subsidiaries of Marriott International, Inc. or Marriott Hotel Services, Inc. (collectively, “Marriott”) 8 Interstate Hotels & Resorts, Inc. 3 Highgate Hotels L.P. and an affiliate 3 Crestline Hotels & Resorts 2 Hilton Worldwide 2 Davidson Hotels & Resorts 1 Hyatt Corporation 1 Singh Hospitality, LLC 1 Total hotels owned as of December 31, 2018 21

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2018
Summary of Significant Accounting Policies
Schedule of contract assets and liabilities	Trade receivables and contract liabilities consisted of the following (in thousands): December 31, December 31, 2018 2017 Trade receivables, net (1) $ 18,982 $ 20,773 Contract liabilities (2) $ 16,711 $ 13,454 (1) Trade receivables are included in accounts receivable, net on the accompanying consolidated balance sheets. (2) Contract liabilities consist of advance deposits, and are included in other current liabilities on the accompanying consolidated balance sheets. Of the amount outstanding at December 31, 2017, approximately $13.2 million was recognized in revenue during the year ended December 31, 2018.
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): Year Ended Year Ended Year Ended December 31, 2018 December 31, 2017 December 31, 2016 Numerator: Net income $ 259,059 $ 153,004 $ 140,677 Income from consolidated joint venture attributable to noncontrolling interest (8,614) (7,628) (6,480) Preferred stock dividends and redemption charge (12,830) (12,830) (15,964) Distributions paid on unvested restricted stock compensation (814) (860) (754) Undistributed income allocated to unvested restricted stock compensation (422) — — Numerator for basic and diluted income attributable to common stockholders $ 236,379 $ 131,686 $ 117,479 Denominator: Weighted average basic and diluted common shares outstanding 225,924 221,898 214,966 Basic and diluted income attributable to common stockholders per common share $ 1.05 $ 0.59 $ 0.55

Investment in Hotel Properties

Investment in Hotel Properties (Tables)	12 Months Ended
	Dec. 31, 2018
Investment in Hotel Properties
Schedule of investment in hotel properties	Investment in hotel properties, net consisted of the following (in thousands): December 31, 2018 2017 Land $ 611,993 $ 605,054 Buildings and improvements 2,983,308 3,049,569 Furniture, fixtures and equipment 486,441 484,749 Intangible assets 56,021 48,371 Franchise fees 778 980 Construction in progress 60,744 54,280 Investment in hotel properties, gross 4,199,285 4,243,003 Accumulated depreciation and amortization (1,168,287) (1,136,937) Investment in hotel properties, net $ 3,030,998 $ 3,106,066
Schedule of fair values of assets acquired and liabilities assumed in hotel acquisition	The fair values of the assets acquired and liabilities assumed at the Oceans Edge Resort & Marina’s acquisition date were allocated as follows (in thousands): Assets: Investment in hotel properties $ 174,971 Accounts receivable 15 Inventories 50 Prepaid expenses 41 Other assets 84 Total assets acquired 175,161 Liabilities: Accounts payable and accrued expenses 210 Accrued payroll and employee benefits 256 Other current liabilities 752 Other liabilities 26 Total liabilities assumed 1,244 Total cash paid for acquisition $ 173,917
Schedule of pro forma operating information	In the Company’s opinion, all significant adjustments necessary to reflect the effects of the acquisition have been made (in thousands, except per share data): 2017 Revenues $ 1,202,887 Income attributable to common stockholders $ 133,939 Income per diluted share attributable to common stockholders $ 0.60
Schedule Of Finite And Indefinite Lived Intangible Assets Included in Investment in Hotel Properties	Intangible assets included in the Company’s investment in hotel properties, net consisted of the following (in thousands): December 31, 2018 2017 Advanced bookings (1) $ — $ 10,621 Easement/Element agreements (2) 28,163 9,727 Ground lease/air rights agreements (3) 25,585 25,478 In-place lease agreements (4) 1,312 1,517 Above market lease agreement (5) — 67 Below market management agreement (6) 961 961 56,021 48,371 Accumulated amortization (5,132) (14,233) $ 50,889 $ 34,138
Schedule of amortization expense on intangible assets included in investment in hotel properties	Amortization expense on these intangible assets for the years ended December 31, 2018, 2017 and 2016 consisted of the following (in thousands): 2018 2017 2016 Advanced bookings (1) $ 1,201 $ 2,340 $ 2,340 Ground lease/air rights agreements (3) 255 255 255 In-place lease agreements (4) 237 276 697 Above market lease agreements (5) 8 16 301 Below market management agreement (6) 91 299 469 $ 1,792 $ 3,186 $ 4,062 (1) Prior to being fully amortized in July 2018, advanced bookings consisted of advance deposits related to the purchases of the Boston Park Plaza, the Hyatt Regency San Francisco and the Wailea Beach Resort. The contractual advanced hotel bookings were recorded at a discounted present value based on estimated collectability, and were amortized using the straight-line method over the periods the amounts were expected to be collected. The amortization expense for contractual advanced hotel bookings is included in depreciation and amortization expense in the Company’s consolidated statements of operations. Advanced bookings for the Hyatt Regency San Francisco were fully amortized in December 2017, and the advanced bookings for the Boston Park Plaza and the Wailea Beach Resort were fully amortized in June 2018 and July 2018, respectively. (2) The Easement/Element agreements as of December 31, 2018 consisted of an easement at the Hilton Times Square, and the Element at the Renaissance Washington DC, both of which were valued at fair value at the date of acquisition. The agreements have indefinite useful lives, and, therefore, are not amortized. These non-amortizable intangible assets are reviewed annually for impairment and more frequently if events or circumstances indicate that the asset may be impaired. If a non-amortizable intangible asset is subsequently determined to have a finite useful life, the intangible asset will be written down to the lower of its fair value or carrying amount and then amortized prospectively, based on the remaining useful life of the intangible asset. (3) Ground lease/air rights agreements as of December 31, 2018 included a ground lease at the Hilton Times Square, and air rights at both the Renaissance Harborplace and the Oceans Edge Resort & Marina. The ground lease agreement at the Hilton Times Square was valued at fair value at the date of acquisition. The agreement is amortized using the straight-line method over the remaining non-cancelable 72-year lease term as of December 31, 2018. The amortization expense for the agreement is included in property tax, ground lease and insurance expense in the Company’s consolidated statements of operations. The air rights assets at the Renaissance Harborplace and the Oceans Edge Resort & Marina were both valued at fair value at the dates of acquisition, and both have indefinite useful lives and are not amortized. (4) In-place lease agreements as of December 31, 2018 included in-place lease agreements at the Hilton San Diego Bayfront, the Hyatt Regency San Francisco and the Wailea Beach Resort. Prior to being fully amortized in July 2018, in-place lease agreements also included agreements at the Oceans Edge Resort & Marina. The agreements were valued at fair value at the dates of acquisition, and are amortized using the straight-line method over the remaining non-cancelable terms of the related agreements, which range from between approximately two months and seven months as of December 31, 2018. The amortization expense for the agreements is included in depreciation and amortization expense in the Company’s consolidated statements of operations. (5) Prior to being fully amortized in July 2018 and February 2017, the above market lease agreements consisted of favorable tenant leases at the Hyatt Regency San Francisco and the Hilton New Orleans St. Charles, respectively. The agreements were valued at fair value at the dates of acquisition, and amortized using the straight-line method over the remaining non-cancelable term of the related agreements. The amortization expense for the agreements is included in other operating revenue in the Company’s consolidated statements of operations. (6) The below market management agreement at the Hilton Garden Inn Chicago Downtown/Magnificent Mile was valued at fair value at the acquisition date. The agreement is comprised of two components, one for the management of the Hilton Garden Inn Chicago Downtown/Magnificent Mile, and the other for the potential management of a future hotel. The component related to the management of the Hilton Garden Inn Chicago Downtown/Magnificent Mile is amortized using the straight-line method over the remaining non-cancelable term, and will be fully amortized in December 2022. The component related to the potential management of a future hotel was amortized using the straight-line method over the remaining non-cancelable term, and was fully amortized in July 2017. The amortization expense for the agreement is included in other property-level expenses in the Company’s consolidated statements of operations.
Schedule of amortization expense for next five years	For the next five years, amortization expense for the intangible assets noted above is expected to be as follows (in thousands): 2019 $ 382 2020 $ 347 2021 $ 347 2022 $ 347 2023 $ 255

Disposals and Discontinued Op_2

Disposals and Discontinued Operations (Tables)	12 Months Ended
	Dec. 31, 2018
Sold, not considered a discontinued operation
Schedule of proceeds and gain on sale of hotels	The details of the sales were as follows (in thousands): Net Proceeds Net Gain Marriott Philadelphia and Marriott Quincy $ 136,983 $ 15,659 Hyatt Regency Newport Beach 94,043 53,128 Houston hotels 32,421 336 Marriott Tysons Corner 84,526 47,838 $ 347,973 $ 116,961
Schedule of operating results for sold entities	The following table provides summary results of operations for the hotels sold in 2018, 2017 and 2016, which are included in continuing operations for their respective ownership periods (in thousands): 2018 2017 2016 Total revenues $ 67,065 $ 154,963 $ 195,396 Income before income taxes and discontinued operations (1) $ 8,707 $ 20,869 $ 24,806 Gain on sale of assets $ 116,961 $ 45,474 $ 18,223 (1) Income before income taxes and discontinued operations does not include the gain recognized on the hotel sales.
Marriott Philadelphia and Marriott Quincy | Held for sale, not considered a discontinued operation
Schedule of amounts held for sale	The Company classified the assets and liabilities related to the Marriott Philadelphia and the Marriott Quincy as held for sale as of December 31, 2017 as follows (in thousands): December 31, 2017 Accounts receivable $ 1,676 Prepaid expenses 193 Investment in hotel properties, net 120,916 Other assets 22 Assets held for sale, net $ 122,807 Accounts payable and accrued expenses $ 69 Other current liabilities 41 Other liabilities 79 Liabilities of assets held for sale $ 189

Fair Value Measurements and I_2

Fair Value Measurements and Interest Rate Derivatives (Tables)	12 Months Ended
	Dec. 31, 2018
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 December 31, 2018 and 2017 (in thousands): Fair Value Measurements at Reporting Date Total Level 1 Level 2 Level 3 December 31, 2018: Interest rate cap derivatives $ — $ — $ — $ — Interest rate swap derivatives 4,789 — 4,789 — Life insurance policy (1) 386 — 386 — Total assets measured at fair value at December 31, 2018 $ 5,175 $ — $ 5,175 $ — December 31, 2017: Houston hotels, net $ 34,473 $ — $ — $ 34,473 Interest rate cap derivatives 4 — 4 — Interest rate swap derivatives 3,390 — 3,390 — Life insurance policy (1) 645 — 645 — Total assets measured at fair value at December 31, 2017 $ 38,512 $ — $ 4,039 $ 34,473 (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 basis at December 31, 2018 and 2017 (in thousands): Fair Value Measurements at Reporting Date Total Level 1 Level 2 Level 3 December 31, 2018: Retirement benefit agreement (1) $ 386 $ — $ 386 $ — Total liabilities measured at fair value at December 31, 2018 $ 386 $ — $ 386 $ — December 31, 2017: Retirement benefit agreement (1) $ 645 $ — $ 645 $ — Total liabilities measured at fair value at December 31, 2017 $ 645 $ — $ 645 $ — (1) Includes the retirement benefit agreement for a former Company associate. The agreement calls for the balance of the retirement benefit agreement 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 $1.6 million through December 31, 2018, 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 in 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 December 31, 2018 and 2017 (in thousands): Estimated Fair Value Asset Strike / Capped Effective Maturity Notional December 31, Hedged Debt Type LIBOR Rate Index Date Date Amount 2018 2017 Hilton San Diego Bayfront (1) Cap 4.250 % 1-Month LIBOR May 1, 2017 May 1, 2019 $ 107,962 $ — $ — Hilton San Diego Bayfront (1) Cap 6.000 % 1-Month LIBOR November 10, 2017 December 9, 2020 $ 220,000 — 4 $85.0 million term loan (2) Swap 1.591 % 1-Month LIBOR October 29, 2015 September 2, 2022 $ 85,000 2,521 2,010 $100.0 million term loan (2) Swap 1.853 % 1-Month LIBOR January 29, 2016 January 31, 2023 $ 100,000 2,268 1,380 $ 4,789 $ 3,394 (1) In November 2017, the Company refinanced the existing loan secured by the Hilton San Diego Bayfront (see Note 7). Coterminous with the loan refinance, the Company purchased a new interest rate cap agreement with a strike rate of 6.0% and an expiration date in December 2020. The fair values of both Hilton San Diego Bayfront cap agreements are included in other assets, net on the accompanying consolidated balance sheets as of both December 31, 2018 and 2017. (2) The fair values of both the $85.0 million and $100.0 million term loan swap agreements are included in other assets, net on the accompanying consolidated balance sheets as of both December 31, 2018 and 2017.
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 decreases to interest expense for the years ended December 31, 2018, 2017 and 2016 as follows (in thousands): 2018 2017 2016 Noncash interest on derivatives $ (1,395) $ (1,520) $ (1,426)
Schedule of principal values and estimated fair values of debt	The Company’s principal balances and fair market values of its consolidated debt as of December 31, 2018 and 2017 were as follows (in thousands): December 31, 2018 December 31, 2017 Carrying Amount (1) Fair Value Carrying Amount (1) Fair Value Debt $ 982,828 $ 971,082 $ 990,402 $ 997,922 (1) The principal balance of debt is presented before any unamortized deferred financing costs.

Other Assets (Tables)

Other Assets (Tables)	12 Months Ended
	Dec. 31, 2018
Other Assets
Schedule of other assets	Other assets, net consisted of the following (in thousands): December 31, 2018 2017 Property and equipment, net $ 8,426 $ 584 Goodwill 990 990 Deferred rent on straight-lined third-party tenant leases 3,177 3,351 Deferred income tax asset 8,407 9,492 Interest rate derivatives 4,789 3,394 Other receivables 3,209 3,136 Other 819 1,370 Total other assets, net $ 29,817 $ 22,317

Notes Payable (Tables)

Notes Payable (Tables)	12 Months Ended
	Dec. 31, 2018
Notes Payable
Schedule of notes payable	Notes payable consisted of the following (in thousands): December 31, 2018 2017 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 both December 31, 2018 and 2017. $ 337,828 $ 345,402 Note payable requiring payments of interest only, bearing a blended rate of one-month LIBOR plus 105 basis points; maturing in December 2020 with three one-year extensions. The note is collateralized by a first deed of trust on one hotel property. 220,000 220,000 Unsecured term loan requiring payments of interest only, with a blended interest rate based on a pricing grid with a range of 135 to 220 basis points over one-month LIBOR at December 31, 2018, and a range of 180 to 255 basis points over one-month LIBOR at December 31, 2017, 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 2.941% at December 31, 2018, and 3.391% at December 31, 2017. 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 135 to 220 basis points over one-month LIBOR at December 31, 2018, and a range of 180 to 255 basis points over one-month LIBOR at December 31, 2017, 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 3.203% at December 31, 2018, and 3.653% at December 31, 2017, 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. 120,000 120,000 Unsecured Senior Notes requiring semi-annual payments of interest only, bearing interest at 4.79%; maturing in January 2028. 120,000 120,000 Total notes payable $ 982,828 $ 990,402 Current portion of notes payable $ 7,804 $ 7,420 Less: current portion of deferred financing costs (1,966) (1,943) Carrying value of current portion of notes payable $ 5,838 $ 5,477 Notes payable, less current portion $ 975,024 $ 982,982 Less: long-term portion of deferred financing costs (3,799) (5,700) Carrying value of notes payable, less current portion $ 971,225 $ 977,282
Schedule of aggregate future principal maturities and amortization of notes payable	Aggregate future principal maturities and amortization of notes payable at December 31, 2018, are as follows (in thousands): 2019 $ 7,804 2020 304,137 2021 111,247 2022 88,446 2023 103,593 Thereafter 367,601 Total $ 982,828
Schedule of deferred financing costs and losses on extinguishment of debt	Deferred financing costs and loss on extinguishment of debt for the years ended December 31, 2018, 2017 and 2016 were as follows (in thousands): 2018 (1) 2017 (2) 2016 (3) Payments of deferred financing costs $ 4,012 $ 3,537 $ 1,759 Loss on extinguishment of debt $ 835 $ 824 $ 284 (1) During 2018, the Company paid a total of $4.0 million in deferred financing costs and incurred a loss on extinguishment of debt totaling $0.8 million related to its credit facility amendment and extension and term loans repricing. (2) During 2017, the Company paid a total of $3.5 million in deferred financing costs related to its new $220.0 million loan secured by the Hilton San Diego Bayfront, its Senior Notes and its credit facility. In addition, during 2017, the Company incurred a loss on extinguishment of debt totaling $0.8 million related to its 2017 debt repayment and refinancing. (3) During 2016, the Company paid a total of $1.8 million in deferred financing costs related to its $100.0 million unsecured term loan, its credit facility and its Senior Notes. In addition, during 2016, the Company incurred a loss on extinguishment of debt totaling $0.3 million related to its 2016 debt repayments.
Schedule of interest expense	Total interest incurred and expensed on the notes payable and capital lease obligations for the years ended December 31, 2018, 2017 and 2016 was as follows (in thousands): 2018 2017 2016 Interest expense on debt and capital lease obligations $ 45,933 $ 46,251 $ 49,509 Noncash interest on derivatives and capital lease obligations, net (1,190) 3,106 (1,426) Amortization of deferred financing costs 2,947 2,409 2,200 Total interest expense $ 47,690 $ 51,766 $ 50,283

Other Current Liabilities and_2

Other Current Liabilities and Other Liabilities (Tables)	12 Months Ended
	Dec. 31, 2018
Other Current Liabilities and Other Liabilities
Schedule of other current liabilities	Other current liabilities consisted of the following (in thousands): December 31, 2018 2017 Property, sales and use taxes payable $ 15,684 $ 17,842 Income tax payable 125 160 Accrued interest 7,306 6,746 Advance deposits 16,711 13,454 Management fees payable 1,142 1,952 Other 3,994 4,348 Total other current liabilities $ 44,962 $ 44,502
Schedule of other liabilities	Other liabilities consisted of the following (in thousands): December 31, 2018 2017 Deferred revenue $ 5,017 $ 5,589 Deferred rent 22,270 19,582 Deferred income tax liability 304 257 Other 3,112 3,561 Total other liabilities $ 30,703 $ 28,989

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2018
Income Taxes
Schedule of deferred tax assets (liabilities)	The significant components of the Company’s deferred tax assets and liabilities were as follows (in thousands): December 31, 2018 2017 Deferred Tax Assets: NOL carryover $ 3,711 $ 4,427 Other reserves 1,052 1,301 State taxes and other 3,168 3,232 Depreciation 476 532 Total deferred tax assets 8,407 9,492 Deferred Tax Liabilities: Amortization (53) (63) Deferred revenue (213) (157) Other (38) (37) Total deferred tax liabilities (304) (257) Net deferred tax assets $ 8,103 $ 9,235
Schedule of income tax (provision) benefit	The Company’s income tax (provision) benefit, net was included in the consolidated statements of operations as follows (in thousands): 2018 2017 2016 Current: Federal $ 4 $ (298) $ 1,379 State (639) (1,162) (763) Current income tax (provision) benefit, net (635) (1,460) 616 Deferred: Federal (365) (5,591) 3,797 State (767) (442) 1,638 Change in valuation allowance — 15,268 (5,435) Deferred income tax (provision) benefit, net (1,132) 9,235 — Income tax (provision) benefit, net $ (1,767) $ 7,775 $ 616
Schedule of effective income tax rate reconciliation	The differences between the income tax (provision) calculated at the statutory U.S. federal income tax rate of 21% (35% prior to 2018) and the actual income tax (provision) benefit recorded for continuing operations were as follows (in thousands): 2018 2017 2016 Expected federal tax expense at statutory rate $ (49,899) $ (44,930) $ (47,621) Tax impact of REIT election 49,905 41,169 44,320 Expected tax benefit (provision) of TRS 6 (3,761) (3,301) State income tax expense, net of federal benefit (606) (318) (1,081) Change in valuation allowance — 14,340 6,556 Other permanent items (1,167) (381) (1,558) AMT credit — 1,421 — Effect of rate change — (3,526) — Income tax (provision) benefit, net $ (1,767) $ 7,775 $ 616
Schedule of characterization of distributions	Characterization of Distributions For income tax purposes, distributions paid consist of ordinary income, capital gains, return of capital or a combination thereof. For the years ended December 31, 2018, 2017 and 2016, distributions paid per share were characterized as follows (unaudited): 2018 (1) 2017 2016 Amount % Amount % Amount % Common Stock: Ordinary income $ 0.634 91.89 % $ 0.554 75.95 % $ 0.609 89.62 % Capital gain 0.056 8.11 0.176 24.05 0.071 10.38 Return of capital — — — — — — Total $ 0.690 100 % $ 0.730 100 % $ 0.680 100 % Preferred Stock — Series D Ordinary income $ — — % $ — — % $ 0.473 89.62 % Capital gain — — — — 0.055 10.38 Return of capital — — — — — — Total $ — — % $ — — % $ 0.528 100 % Preferred Stock — Series E Ordinary income $ 1.597 91.89 % $ 1.320 75.95 % $ 1.259 89.62 % Capital gain 0.141 8.11 0.418 24.05 0.146 10.38 Return of capital — — — — — — Total $ 1.738 100 % $ 1.738 100 % $ 1.405 100 % Preferred Stock — Series F Ordinary income $ 1.482 91.89 % $ 1.225 75.95 % $ 0.903 89.62 % Capital gain 0.131 8.11 0.388 24.05 0.105 10.38 Return of capital — — — — — — Total $ 1.613 100 % $ 1.613 100 % $ 1.008 100 % (1) Ordinary income in 2018 qualifies for Section 199A treatment per the TCJA.

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	12 Months Ended
	Dec. 31, 2018
Stockholders' Equity
Schedule of dividends and distributions declared per share	The Company declared dividends per share on its Series D preferred stock, Series E preferred stock and Series F preferred stock, along with distributions per share on its common stock during 2018, 2017 and 2016 as follows: 2018 2017 2016 Series D preferred stock $ — $ — $ 0.527778 Series E preferred stock $ 1.7375 $ 1.7375 $ 1.404450 Series F preferred stock $ 1.6125 $ 1.6125 $ 1.007850 Common stock $ 0.6900 $ 0.7300 $ 0.680000

Long-Term Incentive Plan (Table

Long-Term Incentive Plan (Tables)	12 Months Ended
	Dec. 31, 2018
Long-Term Incentive Plan
Schedule of amortization expense and forfeitures related to restricted shares	The Company has elected to account for forfeitures as they occur. The Company’s amortization expense and forfeitures related to restricted shares for the years ended December 31, 2018, 2017 and 2016 were as follows (in thousands): 2018 2017 2016 Amortization expense, including forfeitures $ 9,007 $ 8,042 $ 7,157
Schedule of non-vested stock grant activity	The following is a summary of non-vested restricted stock grant activity: 2018 2017 2016 Weighted Weighted Weighted Average Average Average Shares Price Shares Price Shares Price Outstanding at beginning of year 1,175,049 $ 14.12 1,095,908 $ 13.36 986,345 $ 14.33 Granted 617,595 $ 15.84 654,266 $ 15.11 816,880 $ 12.33 Vested (602,091) $ 14.37 (541,827) $ 13.78 (605,641) $ 13.39 Forfeited (12,793) $ 14.39 (33,298) $ 14.10 (101,676) $ 14.32 Outstanding at end of year 1,177,760 $ 14.89 1,175,049 $ 14.12 1,095,908 $ 13.36

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2018
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 years ended December 31, 2018, 2017 and 2016 were included in other property-level expenses on the Company’s consolidated statements of operations as follows (in thousands): 2018 2017 2016 Basic management fees $ 31,947 $ 33,318 $ 33,109 Incentive management fees 7,169 6,301 6,071 Total basic and incentive management fees $ 39,116 $ 39,619 $ 39,180
Schedule of license and franchise costs	Total license and franchise fees incurred by the Company during the years ended December 31, 2018, 2017 and 2016 were included in franchise costs on the Company’s consolidated statements of operations as follows (in thousands): 2018 2017 2016 Franchise assessments (1) $ 25,966 $ 26,902 $ 26,399 Franchise royalties 9,457 9,779 10,248 Total franchise costs $ 35,423 $ 36,681 $ 36,647 (1) Includes advertising, reservation and frequent guest club assessments.
Schedule of capital lease assets	The capital lease assets were included in investment in hotel properties, net on the Company’s consolidated balance sheets as follows (in thousands): December 31, 2018 2017 Gross capital lease asset - buildings and improvements $ 58,799 $ 58,799 Gross capital lease asset - land 6,605 6,605 Gross capital lease assets 65,404 65,404 Accumulated depreciation (9,677) (8,208) Net capital lease assets $ 55,727 $ 57,196
Schedule of future minimum capital lease payments	Future minimum lease payments under for the Company’s capital leases together with the present value of the net minimum lease payments as of December 31, 2018 are as follows (in thousands): 2019 $ 2,357 2020 2,357 2021 2,389 2022 2,453 2023 2,453 Thereafter 136,220 Total minimum lease payments (1) 148,229 Less: Amount representing interest (2) (121,219) Present value of net minimum lease payments (3) $ 27,010 (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. The Company recorded nominal percentage rent in 2018, 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 reflected in the Company’s consolidated balance sheet as of December 31, 2018 as a current obligation of $1,000, which is included in accounts payable and accrued expenses, and as a long-term obligation of $27.0 million, which is included in capital lease obligations, less current portion.
Schedule of hotels obligated to unaffiliated third parties under the terms of ground, building and air leases	During 2018, 2017 and 2016, certain of the Company’s hotels were obligated to unaffiliated third parties under the terms of ground, building and air leases as follows: 2018 2017 2016 Number of hotels with ground, building or air leases 5 6 6 Number of ground leases (1) 4 6 6 Number of building leases (2) 1 1 1 Number of air leases 1 1 1 Total number of ground, building and air leases 6 8 8 (1) Both 2017 and 2016 include ground leases related to the Hyatt Regency Newport Beach, which the Company sold in July 2018, as well as the land underlying the JW Marriott New Orleans, which the Company purchased in July 2018. One of the ground leases is considered by the Company to be a capital lease, as noted above. (2) The building lease is considered by the Company to be a capital lease, as noted above.
Schedule of ground, building and air operating lease rent expense	Total rent expense incurred pursuant to ground, building and air operating lease agreements for the years ended December 31, 2018, 2017 and 2016 was included in property tax, ground lease and insurance in the Company’s consolidated statements of operations as follows (in thousands): 2018 2017 2016 Minimum rent, including straight-line adjustments $ 7,358 $ 8,929 $ 9,140 Percentage rent (1) 6,921 6,351 9,394 Total $ 14,279 $ 15,280 $ 18,534 (1) Several of the Company’s hotels pay percentage rent, which is calculated on operating revenues above certain thresholds.
Schedule of future minimum operating lease payments	Future minimum payments under the terms of the ground and air operating leases, as well as the lease on the corporate facility at December 31, 2018 are as follows (in thousands): 2019 $ 8,159 2020 8,441 2021 8,486 2022 8,531 2023 8,576 Thereafter 159,190 Total $ 201,383
Schedule of hotel geographic concentration of risk	As of December 31, 2018, 16 of the 21 hotels were geographically concentrated as follows: Percentage of Total 2018 Number of Hotels Total Rooms Consolidated Revenue California % % Hawaii % % Illinois % % Massachusetts % % Greater Washington DC area % % Florida % %

Quarterly Operating Results (_2

Quarterly Operating Results (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2018
Quarterly Operating Results (Unaudited)
Schedule of consolidated quarterly results	The Company’s consolidated quarterly results for the years ended December 31, 2018 and 2017 are as follows (in thousands): First Second Third Fourth Quarter Quarter Quarter Quarter Revenues 2018 $ 271,446 $ 317,447 $ 289,308 $ 280,852 2017 $ 280,743 $ 318,796 $ 303,909 $ 290,190 Operating income 2018 $ 26,441 $ 61,855 $ 48,088 $ 45,506 2017 $ 30,282 $ 62,703 $ 13,072 $ 34,948 Net income 2018 $ 38,455 $ 51,262 $ 91,586 $ 77,756 2017 $ 63,827 $ 51,415 $ 17,082 $ 20,680 Income attributable to common stockholders per share — basic and diluted 2018 $ 0.15 $ 0.20 $ 0.38 $ 0.32 2017 $ 0.27 $ 0.21 $ 0.05 $ 0.07

Organization and Description _3

Organization and Description of Business (Details)	12 Months Ended
	Dec. 31, 2018propertyitem
Hotel owned by the Company
Organization and Description of Business
Number of hotels owned by the Company | property	21
Number of hotels managed by third parties	21
Hotel owned by the Company | Marriott
Organization and Description of Business
Number of hotels managed by third parties	8
Hotel owned by the Company | Interstate Hotels & Resorts, Inc
Organization and Description of Business
Number of hotels managed by third parties	3
Hotel owned by the Company | Highgate Hotels L.P. and an affiliate
Organization and Description of Business
Number of hotels managed by third parties	3
Hotel owned by the Company | Crestline Hotels & Resorts
Organization and Description of Business
Number of hotels managed by third parties	2
Hotel owned by the Company | Hilton Worldwide
Organization and Description of Business
Number of hotels managed by third parties	2
Hotel owned by the Company | Davidson Hotels & Resorts
Organization and Description of Business
Number of hotels managed by third parties	1
Hotel owned by the Company | Hyatt Corporation
Organization and Description of Business
Number of hotels managed by third parties	1
Hotel owned by the Company | Singh Hospitality, LLC
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 Accoun_4

Summary of Significant Accounting Policies (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)property	Dec. 31, 2017USD ($)property	Dec. 31, 2016property
Assets Held for Sale
Maximum time period for sale for classification of asset as held for sale	12 months
Revenue Recognition
Trade receivables, net	$ 18,982	$ 20,773
Contract liabilities	16,711	$ 13,454
Deferred revenue recognized	$ 13,200
Hilton San Diego Bayfront
Stockholders' Equity Attributable to Noncontrolling Interest
Noncontrolling interest percentage in Hilton San Diego Bayfront	25.00%	25.00%	25.00%
Buildings and improvements | Minimum
Investments in Hotel Properties
Estimated useful life for property, plant and equipment	5 years
Buildings and improvements | Maximum
Investments in Hotel Properties
Estimated useful life for property, plant and equipment	40 years
Furniture, fixtures and equipment | Minimum
Investments in Hotel Properties
Estimated useful life for property, plant and equipment	3 years
Furniture, fixtures and equipment | Maximum
Investments in Hotel Properties
Estimated useful life for property, plant and equipment	12 years
Impaired hotels
Investments in Hotel Properties
Number of hotels owned by the Company | property	2	2	0
Initial franchise fees | Minimum
Investments in Hotel Properties
Estimated useful life	14 years
Initial franchise fees | Maximum
Investments in Hotel Properties
Estimated useful life	27 years
Accounting Standards Update 2016-02 | Minimum
Leases
Operating Lease, Right-of-Use Asset	$ 41,000
Operating Lease, Liability	41,000
Accounting Standards Update 2016-02 | Maximum
Leases
Operating Lease, Right-of-Use Asset	51,000
Operating Lease, Liability	$ 51,000

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Numerator:
Net income	$ 77,756	$ 91,586	$ 51,262	$ 38,455	$ 20,680	$ 17,082	$ 51,415	$ 63,827	$ 259,059	$ 153,004	$ 140,677
Income from consolidated joint venture attributable to noncontrolling interest									(8,614)	(7,628)	(6,480)
Preferred stock dividends and redemption charge									(12,830)	(12,830)	(15,964)
Distributions paid on unvested restricted stock compensation									(814)	(860)	(754)
Undistributed income allocated to unvested restricted stock compensation									(422)
Numerator for basic and diluted income attributable to common stockholders									$ 236,379	$ 131,686	$ 117,479
Denominator:
Weighted average basic and diluted common shares outstanding (in shares)									225,924	221,898	214,966
Basic and diluted income attributable to common stockholders per common share (in dollars per share)	$ 0.32	$ 0.38	$ 0.20	$ 0.15	$ 0.07	$ 0.05	$ 0.21	$ 0.27	$ 1.05	$ 0.59	$ 0.55

Investment in Hotel Propertie_2

Investment in Hotel Properties (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Land	$ 611,993	$ 605,054
Buildings and improvements	2,983,308	3,049,569
Furniture, fixtures and equipment	486,441	484,749
Intangible assets	56,021	48,371
Franchise fees	778	980
Construction in progress	60,744	54,280
Investment in hotel properties, gross	4,199,285	4,243,003
Accumulated depreciation and amortization	(1,168,287)	(1,136,937)
Investment in hotel properties, net	3,030,998	$ 3,106,066
Hurricane Irma | Oceans Edge Resort & Marina
Hurricane Loss Contingency
Business interruption insurance proceeds received	$ 5,800

Investment in Hotel Propertie_3

Investment in Hotel Properties - Acquisitions (Details) $ / shares in Units, $ in Thousands	1 Months Ended			3 Months Ended								12 Months Ended
	Jul. 31, 2018USD ($)	May 31, 2018USD ($)	Jul. 31, 2017USD ($)room	Dec. 31, 2018USD ($)	Sep. 30, 2018USD ($)	Jun. 30, 2018USD ($)	Mar. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Sep. 30, 2017USD ($)	Jun. 30, 2017USD ($)	Mar. 31, 2017USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)$ / shares	Dec. 31, 2016USD ($)
Investment in Hotel Properties
Payment to acquire intangible asset												$ 18,543		$ 2,447
Payment to acquire land												15,147	$ 173,728
Unaudited pro forma results of operations
Revenues													1,202,887
Income attributable to common stockholders													$ 133,939
Income per diluted share attributable to common stockholders (in dollars per share) | $ / shares													$ 0.60
Net Income				$ 77,756	$ 91,586	$ 51,262	$ 38,455	$ 20,680	$ 17,082	$ 51,415	$ 63,827	259,059	$ 153,004	140,677
Total revenue				$ 280,852	$ 289,308	$ 317,447	$ 271,446	$ 290,190	$ 303,909	$ 318,796	$ 280,743	1,159,053	1,193,638	$ 1,189,340
Acquisitions 2018 | JW Marriott New Orleans | Land
Investment in Hotel Properties
Payment to acquire land	$ 15,100
Acquisitions 2017 | Oceans Edge Resort & Marina
Investment in Hotel Properties
Number of rooms | room			175
Purchase price of acquired entity			$ 173,900
Acquisition-related costs													700
Assets:
Investment in hotel properties			174,971
Accounts receivable			15
Inventories			50
Prepaid expenses			41
Other assets			84
Total assets acquired			175,161
Liabilities:
Accounts payable and accrued expenses			210
Accrued payroll and employee benefits			256
Other current liabilities			752
Other liabilities			26
Total liabilities assumed			1,244
Total cash paid for acquisitions			173,917
Unaudited pro forma results of operations
Net Income													(1,400)
Total revenue													5,100
Hurricane-related restoration expenses													$ 800
Acquisitions 2017 | Oceans Edge Resort & Marina | Land
Assets:
Investment in hotel properties			92,500
Acquisitions 2017 | Oceans Edge Resort & Marina | Buildings and improvements
Assets:
Investment in hotel properties			74,400
Acquisitions 2017 | Oceans Edge Resort & Marina | Furniture, fixtures and equipment
Assets:
Investment in hotel properties			6,400
Acquisitions 2017 | Oceans Edge Resort & Marina | Intangible assets
Assets:
Investment in hotel properties			1,700
In-place lease agreements | Acquisitions 2017 | Oceans Edge Resort & Marina | Intangible assets
Assets:
Investment in hotel properties			$ 100
Weighted average expected life			9 months
Indefinite-Lived Intangible Asset | Acquisitions 2018 | Renaissance Washington DC
Investment in Hotel Properties
Payment to acquire intangible asset		$ 18,400
Indefinite-Lived Intangible Asset | Acquisitions 2018 | Oceans Edge Resort & Marina
Investment in Hotel Properties
Payment to acquire intangible asset												$ 100
Air rights | Acquisitions 2017 | Oceans Edge Resort & Marina | Intangible assets
Assets:
Investment in hotel properties			$ 1,600

Investment in Hotel Propertie_4

Investment in Hotel Properties - Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Intangible Assets
Amortization expense		$ 1,582	$ 3,141	$ 3,743
Payment to acquire intangible asset		18,543		2,447
Ground lease/air rights
Intangible Assets
Estimated useful life	72 years
Intangible assets included in hotel properties
Intangible Assets
Value of intangibles at acquisition	$ 56,021	56,021	48,371
Accumulated amortization	(5,132)	(5,132)	(14,233)
Net balance of intangibles at end of period	50,889	50,889	34,138
Amortization expense		1,792	3,186	4,062
Intangible assets included in hotel properties | Indefinite-Lived Intangible Asset
Intangible Assets
Value of intangibles at acquisition	28,163	28,163	9,727
Intangible assets included in hotel properties | Advanced bookings
Intangible Assets
Value of intangibles at acquisition			10,621
Amortization expense		1,201	2,340	2,340
Intangible assets included in hotel properties | Ground lease/air rights
Intangible Assets
Value of intangibles at acquisition	25,585	25,585	25,478
Amortization expense		255	255	255
Intangible assets included in hotel properties | In-place lease agreements
Intangible Assets
Value of intangibles at acquisition	1,312	1,312	1,517
Amortization expense		237	276	697
Intangible assets included in hotel properties | Above market lease agreements
Intangible Assets
Value of intangibles at acquisition			67
Amortization expense		8	16	301
Intangible assets included in hotel properties | Below-market management agreement
Intangible Assets
Value of intangibles at acquisition	$ 961	961	961
Amortization expense		$ 91	$ 299	$ 469
Minimum | In-place lease agreements
Intangible Assets
Estimated useful life	2 months
Maximum | In-place lease agreements
Intangible Assets
Estimated useful life	7 months

Investment in Hotel Propertie_5

Investment in Hotel Properties - Future Amortization of Intangible Assets (Details) $ in Thousands	Dec. 31, 2018USD ($)
Investment in Hotel Properties
2,019	$ 382
2,020	347
2,021	347
2,022	347
2,023	$ 255

Disposals and Discontinued Op_3

Disposals and Discontinued Operations - Disposals (Details) - USD ($) $ in Thousands	1 Months Ended			12 Months Ended
	Jun. 30, 2017	Feb. 28, 2017	May 31, 2016	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Detail of Amounts Held for Sale
Assets held for sale, net					$ 122,807
Liabilities of assets held for sale					189
Detail of Disposals
Gain on sale of assets				$ 116,961	45,474	$ 18,413
Held for sale, not considered a discontinued operation | Marriott Philadelphia and Marriott Quincy
Detail of Amounts Held for Sale
Accounts receivable					1,676
Prepaid expenses					193
Investment in hotel properties, net					120,916
Other assets					22
Assets held for sale, net					122,807
Accounts payable and accrued expenses					69
Other current liabilities					41
Other liabilities					79
Liabilities of assets held for sale					189
Sold, not considered a discontinued operation
Detail of Disposals
Net proceeds received from sale				347,973
Gain on sale of assets				116,961	45,474	18,223
Total revenues				67,065	154,963	195,396
Income before income taxes				8,707	$ 20,869	$ 24,806
Sold, not considered a discontinued operation | Marriott Philadelphia and Marriott Quincy
Detail of Disposals
Net proceeds received from sale				136,983
Gain on sale of assets				15,659
Sold, not considered a discontinued operation | Hyatt Regency Newport Beach
Detail of Disposals
Net proceeds received from sale				94,043
Gain on sale of assets				53,128
Sold, not considered a discontinued operation | Houston Hotels
Detail of Disposals
Net proceeds received from sale				32,421
Gain on sale of assets				336
Sold, not considered a discontinued operation | Marriott Tysons Corner
Detail of Disposals
Net proceeds received from sale				84,526
Gain on sale of assets				$ 47,838
Sold, not considered a discontinued operation | Fairmont Newport Beach
Detail of Disposals
Net proceeds received from sale		$ 122,800
Gain on sale of assets		$ 44,300
Sold, not considered a discontinued operation | Marriott Park City
Detail of Disposals
Net proceeds received from sale	$ 27,000
Gain on sale of assets	$ 1,200
Sold, not considered a discontinued operation | Sheraton Cerritos
Detail of Disposals
Net proceeds received from sale			$ 41,200
Gain on sale of assets			$ 18,200

Disposals and Discontinued Op_4

Disposals and Discontinued Operations - Discontinued Operations (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)
Income from discontinued operations, net of tax	$ 7,000
Rochester Portfolio | Sold, considered a discontinued operation
Gain on sale of hotels and other assets, net	$ 7,000

Fair Value Measurements and I_3

Fair Value Measurements and Interest Rate Derivatives - Fair Value Measurements (Details) $ in Thousands	Dec. 31, 2018USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2011item
Fair value of assets and liabilities measured at fair value on a recurring and nonrecurring basis
Impairment loss		$ 1,394	$ 40,053
Assets:
Investment in hotel properties, net	$ 3,030,998	3,030,998	3,106,066
Interest rate derivatives	4,789	4,789	3,394
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	1,600
Level 2
Assets:
Life insurance policy	386	386	645
Total assets	5,175	5,175	4,039
Liabilities:
Retirement benefit agreement	386	386	645
Total liabilities	386	386	645
Level 2 | Interest Rate Cap
Assets:
Interest rate derivatives			4
Level 2 | Interest Rate Swap
Assets:
Interest rate derivatives	4,789	4,789	3,390
Level 3
Assets:
Total assets			34,473
Total at the end of the period
Assets:
Life insurance policy	386	386	645
Total assets	5,175	5,175	38,512
Liabilities:
Retirement benefit agreement	386	386	645
Total liabilities	386	386	645
Total at the end of the period | Interest Rate Cap
Assets:
Interest rate derivatives			4
Total at the end of the period | Interest Rate Swap
Assets:
Interest rate derivatives	$ 4,789	4,789	3,390
Houston Hotels
Fair value of assets and liabilities measured at fair value on a recurring and nonrecurring basis
Impairment loss		$ 1,400	40,100
Houston Hotels | Level 3
Assets:
Investment in hotel properties, net			34,473
Houston Hotels | Total at the end of the period
Assets:
Investment in hotel properties, net			$ 34,473

Fair Value Measurements and I_4

Fair Value Measurements and Interest Rate Derivatives - Interest Rate Derivatives (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Interest Rate Derivatives
Fair values of derivative assets	$ 4,789	$ 3,394
Noncash interest on derivatives	$ (1,395)	$ (1,520)	$ (1,426)
Hilton San Diego Bayfront mortgage payable
Interest Rate Derivatives
Interest rate, description of reference rate	one-month LIBOR	one-month LIBOR
$85.0 million term loan
Interest Rate Derivatives
Interest rate, description of reference rate	one-month LIBOR	one-month LIBOR
$100.0 million term loan
Interest Rate Derivatives
Interest rate, description of reference rate	one-month LIBOR	one-month LIBOR
Interest rate derivatives
Interest Rate Derivatives
Fair value of interest rate derivatives	$ 4,789	$ 3,394
Interest Rate Cap | Not designated as hedging instrument | Hilton San Diego Bayfront previous mortgage payable
Interest Rate Derivatives
Strike rate under interest rate cap agreement	4.25%	4.25%
Interest rate, description of reference rate	one-month LIBOR	one-month LIBOR
Effective date	May 1, 2017	May 1, 2017
Interest rate derivative maturity date	May 1, 2019	May 1, 2019
Notional amount	$ 107,962
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	6.00%	6.00%
Interest rate, description of reference rate	one-month LIBOR	one-month LIBOR
Effective date	Nov. 10, 2017	Nov. 10, 2017
Interest rate derivative maturity date	Dec. 9, 2020	Dec. 9, 2020
Notional amount	$ 220,000
Fair value of interest rate derivatives		$ 4
Interest Rate Swap | Not designated as hedging instrument | $85.0 million term loan
Interest Rate Derivatives
Fixed rate under interest rate swap agreement	1.591%	1.591%
Interest rate, description of reference rate	one-month LIBOR	one-month LIBOR
Effective date	Oct. 29, 2015	Oct. 29, 2015
Interest rate derivative maturity date	Sep. 2, 2022	Sep. 2, 2022
Notional amount	$ 85,000
Fair value of interest rate derivatives	$ 2,521	$ 2,010
Interest Rate Swap | Not designated as hedging instrument | $100.0 million term loan
Interest Rate Derivatives
Fixed rate under interest rate swap agreement	1.853%	1.853%
Interest rate, description of reference rate	one-month LIBOR	one-month LIBOR
Effective date	Jan. 29, 2016	Jan. 29, 2016
Interest rate derivative maturity date	Jan. 31, 2023	Jan. 31, 2023
Notional amount	$ 100,000
Fair value of interest rate derivatives	$ 2,268	$ 1,380

Fair Value Measurements and I_5

Fair Value Measurements and Interest Rate Derivatives - Fair Value of Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Percentage of Debt Bearing Fixed Interest Rates	77.60%	77.80%
Total notes payable	$ 982,828	$ 990,402
Level 3
Total notes payable	$ 971,082	$ 997,922

Other Assets (Details)

Other Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Other assets, net
Property and equipment, net	$ 8,426	$ 584
Goodwill	990	990
Deferred rent on straight-lined third-party tenant leases	3,177	3,351
Deferred income tax asset	8,407	9,492
Interest rate derivatives	4,789	3,394
Other receivables	3,209	3,136
Other	819	1,370
Total other assets, net	$ 29,817	$ 22,317

Notes Payable (Details)

Notes Payable (Details) $ in Thousands	1 Months Ended	12 Months Ended
	Nov. 30, 2017	Dec. 31, 2018USD ($)property	Dec. 31, 2017USD ($)property
Notes payable
Total notes payable		$ 982,828	$ 990,402
Current portion of notes payable		7,804	7,420
Less: current portion of deferred financing costs		(1,966)	(1,943)
Current portion of notes payable, net		5,838	5,477
Notes payable, less current portion		975,024	982,982
Less: long-term portion of deferred financing costs		(3,799)	(5,700)
Carrying value of notes payable, less current portion		971,225	$ 977,282
Aggregate future principal maturities and amortization of notes payable
2,019		7,804
2,020		304,137
2,021		111,247
2,022		88,446
2,023		103,593
Thereafter		367,601
Total		$ 982,828
Notes payable maturing in various years
Notes payable
Number of hotels provided as collateral | property		4	4
Total notes payable		$ 337,828	$ 345,402
Notes payable maturing in various years | Minimum
Notes payable
Fixed interest rate (as a percent)		4.12%	4.12%
Debt maturity date		Nov. 1, 2020	Nov. 1, 2020
Notes payable maturing in various years | Maximum
Notes payable
Fixed interest rate (as a percent)		5.95%	5.95%
Debt maturity date		Jan. 6, 2025	Jan. 6, 2025
Hilton San Diego Bayfront mortgage payable
Notes payable
Number of hotels provided as collateral | property		1	1
Debt maturity date		Dec. 9, 2020	Dec. 9, 2020
Interest rate, description of reference rate		one-month LIBOR	one-month LIBOR
Interest rate added to base rate (as a percent)		1.05%	1.05%
Number of extension periods available for secured debt	3	3	3
Term of extension period for secured debt		1 year	1 year
Total notes payable		$ 220,000	$ 220,000
$85.0 million term loan
Notes payable
Debt maturity date		Sep. 3, 2022	Sep. 3, 2022
Interest rate, description of reference rate		one-month LIBOR	one-month LIBOR
Term loan total interest rate, including effect of swap agreement		2.941%	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)		1.35%	1.80%
$85.0 million term loan | Maximum
Notes payable
Interest rate added to base rate (as a percent)		2.20%	2.55%
$100.0 million term loan
Notes payable
Debt maturity date		Jan. 31, 2023	Jan. 31, 2023
Interest rate, description of reference rate		one-month LIBOR	one-month LIBOR
Term loan total interest rate, including effect of swap agreement		3.203%	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)		1.35%	1.80%
$100.0 million term loan | Maximum
Notes payable
Interest rate added to base rate (as a percent)		2.20%	2.55%
Series A Senior Notes
Notes payable
Fixed interest rate (as a percent)		4.69%	4.69%
Debt maturity date		Jan. 10, 2026	Jan. 10, 2026
Total notes payable		$ 120,000	$ 120,000
Series B Senior Notes
Notes payable
Fixed interest rate (as a percent)		4.79%	4.79%
Debt maturity date		Jan. 10, 2028	Jan. 10, 2028
Total notes payable		$ 120,000	$ 120,000
Not designated as hedging instrument | Interest Rate Swap | $85.0 million term loan
Notes payable
Interest rate, description of reference rate		one-month LIBOR	one-month LIBOR
Fixed rate under interest rate swap agreement		1.591%	1.591%
Not designated as hedging instrument | Interest Rate Swap | $100.0 million term loan
Notes payable
Interest rate, description of reference rate		one-month LIBOR	one-month LIBOR
Fixed rate under interest rate swap agreement		1.853%	1.853%

Notes Payable - Transactions (D

Notes Payable - Transactions (Details) $ in Thousands	1 Months Ended				9 Months Ended	12 Months Ended
	Oct. 31, 2018USD ($)	Nov. 30, 2017USD ($)	Oct. 31, 2017	Jan. 31, 2017USD ($)	Sep. 30, 2018	Dec. 31, 2020	Dec. 31, 2018	Dec. 31, 2017USD ($)
Debt Transactions
Payment for interest rate derivative								$ 125
Amended Credit Facility | 2018 Debt Transactions
Debt Transactions
Amount available under amended credit facility agreement	$ 500,000
Increase in amount available under amended credit faciltiy agreement	100,000
Maximum borrowing capacity under amended credit facility with lender approval	$ 800,000
Interest rate, description of reference rate	one-month LIBOR
Debt maturity date	Apr. 14, 2023
Previous Credit Facility Before Amendment | 2018 Debt Transactions
Debt Transactions
Interest rate, description of reference rate					one-month LIBOR
Debt maturity date					Apr. 2, 2019
Unsecured Term Loans | 2018 Debt Transactions
Debt Transactions
Interest rate, description of reference rate	one-month LIBOR				one-month LIBOR
$85.0 million term loan
Debt Transactions
Interest rate, description of reference rate							one-month LIBOR	one-month LIBOR
Debt maturity date							Sep. 3, 2022	Sep. 3, 2022
$85.0 million term loan | 2018 Debt Transactions
Debt Transactions
Fixed rate under interest rate swap agreement	2.941%				3.391%
$100.0 million term loan
Debt Transactions
Interest rate, description of reference rate							one-month LIBOR	one-month LIBOR
Debt maturity date							Jan. 31, 2023	Jan. 31, 2023
$100.0 million term loan | 2018 Debt Transactions
Debt Transactions
Fixed rate under interest rate swap agreement	3.203%				3.653%
Senior Notes | 2017 Debt Transactions
Debt Transactions
Proceeds from issuance of unsecured debt				$ 240,000
Series A Senior Notes
Debt Transactions
Debt maturity date							Jan. 10, 2026	Jan. 10, 2026
Fixed interest rate (as a percent)							4.69%	4.69%
Series A Senior Notes | 2017 Debt Transactions
Debt Transactions
Debt maturity date				Jan. 10, 2026
Proceeds from issuance of unsecured debt				$ 120,000
Fixed interest rate (as a percent)				4.69%
Series B Senior Notes
Debt Transactions
Debt maturity date							Jan. 10, 2028	Jan. 10, 2028
Fixed interest rate (as a percent)							4.79%	4.79%
Series B Senior Notes | 2017 Debt Transactions
Debt Transactions
Debt maturity date				Jan. 10, 2028
Proceeds from issuance of unsecured debt				$ 120,000
Fixed interest rate (as a percent)				4.79%
Marriott Boston Long Wharf mortgage payable | 2017 Debt Transactions
Debt Transactions
Debt maturity date				Apr. 11, 2017
Fixed interest rate (as a percent)				5.58%
Repayment of mortgage debt				$ 176,000
Hilton San Diego Bayfront previous mortgage payable | 2017 Debt Transactions
Debt Transactions
Interest rate added to base rate (as a percent)			2.25%
Interest rate, description of reference rate	one-month LIBOR
Debt maturity date			Aug. 8, 2019
Repayment of mortgage debt		$ 219,600
Hilton San Diego Bayfront mortgage payable
Debt Transactions
Interest rate added to base rate (as a percent)							1.05%	1.05%
Interest rate, description of reference rate							one-month LIBOR	one-month LIBOR
Debt maturity date							Dec. 9, 2020	Dec. 9, 2020
Number of extension periods available for secured debt		3					3	3
Term of extension period for secured debt							1 year	1 year
Hilton San Diego Bayfront mortgage payable | 2017 Debt Transactions
Debt Transactions
Interest rate added to base rate (as a percent)		1.05%
Interest rate, description of reference rate		one-month LIBOR
Debt maturity date		Dec. 9, 2020
Proceeds from secured notes payable		$ 220,000
Term of extension period for secured debt		1 year
Potential increase in interest rate added to base rate (as a percent)						0.25%
Minimum | Amended Credit Facility | 2018 Debt Transactions
Debt Transactions
Interest rate added to base rate (as a percent)	1.40%
Minimum | Previous Credit Facility Before Amendment | 2018 Debt Transactions
Debt Transactions
Interest rate added to base rate (as a percent)					1.55%
Minimum | Unsecured Term Loans | 2018 Debt Transactions
Debt Transactions
Interest rate added to base rate (as a percent)	1.35%				1.80%
Minimum | $85.0 million term loan
Debt Transactions
Interest rate added to base rate (as a percent)							1.35%	1.80%
Minimum | $100.0 million term loan
Debt Transactions
Interest rate added to base rate (as a percent)							1.35%	1.80%
Maximum | Amended Credit Facility | 2018 Debt Transactions
Debt Transactions
Interest rate added to base rate (as a percent)	2.25%
Maximum | Previous Credit Facility Before Amendment | 2018 Debt Transactions
Debt Transactions
Interest rate added to base rate (as a percent)					2.30%
Maximum | Unsecured Term Loans | 2018 Debt Transactions
Debt Transactions
Interest rate added to base rate (as a percent)	2.20%				2.55%
Maximum | $85.0 million term loan
Debt Transactions
Interest rate added to base rate (as a percent)							2.20%	2.55%
Maximum | $100.0 million term loan
Debt Transactions
Interest rate added to base rate (as a percent)							2.20%	2.55%
Not designated as hedging instrument | Interest Rate Cap | Hilton San Diego Bayfront previous mortgage payable
Debt Transactions
Interest rate, description of reference rate							one-month LIBOR	one-month LIBOR
Interest rate derivative maturity date							May 1, 2019	May 1, 2019
Strike rate under interest rate cap agreement							4.25%	4.25%
Not designated as hedging instrument | Interest Rate Cap | Hilton San Diego Bayfront mortgage payable | 2017 Debt Transactions
Debt Transactions
Interest rate derivative maturity date		Dec. 9, 2020
Payment for interest rate derivative		$ 100
Strike rate under interest rate cap agreement		6.00%
Not designated as hedging instrument | Interest Rate Swap | $85.0 million term loan
Debt Transactions
Interest rate, description of reference rate							one-month LIBOR	one-month LIBOR
Fixed rate under interest rate swap agreement							1.591%	1.591%
Interest rate derivative maturity date							Sep. 2, 2022	Sep. 2, 2022
Not designated as hedging instrument | Interest Rate Swap | $100.0 million term loan
Debt Transactions
Interest rate, description of reference rate							one-month LIBOR	one-month LIBOR
Fixed rate under interest rate swap agreement							1.853%	1.853%
Interest rate derivative maturity date							Jan. 31, 2023	Jan. 31, 2023

Notes Payable - Deferred Financ

Notes Payable - Deferred Financing Costs, Loss on Extinguishment of Debt and Interest Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Deferred Financing Costs and Losses on Extinguishment of Debt
Payments of deferred financing costs	$ 4,012	$ 3,537	$ 1,759
Loss on extinguishment of debt	835	824	284
Interest Expense
Noncash interest on derivatives and capital lease obligations, net	(1,190)	3,106	(1,426)
Amortization of deferred financing costs	2,947	2,409	2,200
Total interest expense	47,690	51,766	50,283
Notes payable and capital lease obligations
Interest Expense
Interest expense on debt and capital lease obligations	45,933	46,251	49,509
Noncash interest on derivatives and capital lease obligations, net	(1,190)	3,106	(1,426)
Amortization of deferred financing costs	2,947	2,409	2,200
Total interest expense	$ 47,690	$ 51,766	$ 50,283

Other Current Liabilities and_3

Other Current Liabilities and Other Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Other Current Liabilities
Property, sales and use taxes payable	$ 15,684	$ 17,842
Income tax payable	125	160
Accrued interest	7,306	6,746
Advance deposits	16,711	13,454
Management fees payable	1,142	1,952
Other	3,994	4,348
Total other current liabilities	44,962	44,502
Other Liabilities
Deferred revenue	5,017	5,589
Deferred rent	22,270	19,582
Deferred income tax liability	304	257
Other	3,112	3,561
Total other liabilities	$ 30,703	$ 28,989

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Deferred tax assets
NOL carryover	$ 3,711	$ 4,427
Other reserves	1,052	1,301
State taxes and other	3,168	3,232
Depreciation	476	532
Total deferred tax assets	8,407	9,492
Deferred tax liabilities
Amortization	(53)	(63)
Deferred revenue	(213)	(157)
Other	(38)	(37)
Total deferred tax liabilities	(304)	(257)
Net deferred tax assets	8,103	9,235
Net operating loss carryforwards for federal income tax purposes	15,300	15,600
Current:
Current Federal tax benefit (provision)	4	(298)	$ 1,379
Current State and Local tax (provision) benefit	(639)	(1,162)	(763)
Current income tax (provision) benefit, net	(635)	(1,460)	616
Deferred:
Deferred Federal income tax (provision) benefit	(365)	(5,591)	3,797
Deferred State and Local income tax (provision) benefit	(767)	(442)	1,638
Change in deferred tax asset valuation allowance		15,268	(5,435)
Deferred income tax (provision) benefit, net	(1,132)	9,235
Income tax (provision) benefit, net	$ (1,767)	$ 7,775	$ 616
Corporate tax rate (as a percent)	21.00%	35.00%	35.00%
Effective Income Tax Rate Reconciliation, Amount
Expected federal tax expense at statutory rate	$ (49,899)	$ (44,930)	$ (47,621)
Tax impact of REIT election	49,905	41,169	44,320
Expected tax benefit (provision) of TRS	6	(3,761)	(3,301)
State income tax expense, net of federal benefit	(606)	(318)	(1,081)
Change in valuation allowance		14,340	6,556
Other permanent items	(1,167)	(381)	(1,558)
Alternative minimum tax credit		1,421
Effect of rate change		(3,526)
Income tax (provision) benefit, net	$ (1,767)	$ 7,775	$ 616

Income Taxes - Characterization

Income Taxes - Characterization of Distributions (Details) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Common Stock
Income Taxes
Ordinary income (in dollars per share)	$ 0.634	$ 0.554	$ 0.609
Capital gain (in dollars per share)	0.056	0.176	0.071
Total (in dollars per share)	$ 0.690	$ 0.730	$ 0.680
Ordinary income (as a percent)	91.89%	75.95%	89.62%
Capital gain (as a percent)	8.11%	24.05%	10.38%
Total (as a percent)	100.00%	100.00%	100.00%
Series D Cumulative Redeemable Preferred Stock
Income Taxes
Ordinary income (in dollars per share)			$ 0.473
Capital gain (in dollars per share)			0.055
Total (in dollars per share)			$ 0.528
Ordinary income (as a percent)			89.62%
Capital gain (as a percent)			10.38%
Total (as a percent)			100.00%
Series E Cumulative Redeemable Preferred Stock
Income Taxes
Ordinary income (in dollars per share)	$ 1.597	$ 1.320	$ 1.259
Capital gain (in dollars per share)	0.141	0.418	0.146
Total (in dollars per share)	$ 1.738	$ 1.738	$ 1.405
Ordinary income (as a percent)	91.89%	75.95%	89.62%
Capital gain (as a percent)	8.11%	24.05%	10.38%
Total (as a percent)	100.00%	100.00%	100.00%
Series F Cumulative Redeemable Preferred Stock
Income Taxes
Ordinary income (in dollars per share)	$ 1.482	$ 1.225	$ 0.903
Capital gain (in dollars per share)	0.131	0.388	0.105
Total (in dollars per share)	$ 1.613	$ 1.613	$ 1.008
Ordinary income (as a percent)	91.89%	75.95%	89.62%
Capital gain (as a percent)	8.11%	24.05%	10.38%
Total (as a percent)	100.00%	100.00%	100.00%

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended			12 Months Ended
	May 31, 2016	Apr. 30, 2016	Mar. 31, 2016	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Feb. 28, 2017	May 01, 2016	Feb. 28, 2014
Stockholders' equity
Preferred stock redemption charge						$ 4,052
Proceeds from preferred stock offerings						190,000
Payment of preferred stock offering costs						6,640
Proceeds from issuance of common stock				$ 45,125	$ 79,407	55,133
Payments of stock issuance costs				$ 784	$ 1,475	941
Share repurchase program
Stockholders' equity
Repurchase Program, maximum amount authorized for repurchase							$ 300,000
Series D Cumulative Redeemable Preferred Stock
Stockholders' equity
Number of shares redeemed (in shares)		4,600,000
Redemption price (in dollars per share)		$ 25
Preferred stock, outstanding shares (in shares)								0
Preferred stock redemption charge		$ 4,100
Series E Cumulative Redeemable Preferred Stock
Stockholders' equity
Redemption price (in dollars per share)			$ 25
Preferred stock, outstanding shares (in shares)				4,600,000	4,600,000
Number of shares of preferred stock sold (in shares)			4,600,000
Liquidation preference (in dollars per share)			$ 25	$ 25	$ 25
Proceeds from preferred stock offerings			$ 115,000
Payment of preferred stock offering costs			$ 4,000
Series F Cumulative Redeemable Preferred Stock
Stockholders' equity
Redemption price (in dollars per share)	$ 25
Preferred stock, outstanding shares (in shares)				3,000,000	3,000,000
Number of shares of preferred stock sold (in shares)	3,000,000
Liquidation preference (in dollars per share)	$ 25			$ 25	$ 25
Proceeds from preferred stock offerings	$ 75,000
Payment of preferred stock offering costs	$ 2,600
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				$ 45,100	$ 79,400	55,100
Payments of stock issuance costs				$ 800	$ 1,500	$ 900
ATM Program, number of shares sold or issued (in shares)				2,590,854	4,876,855	3,564,047
ATM Program, remaining amount authorized for issuance				$ 175,500
Common Stock | Maximum | At The Market
Stockholders' equity
ATM Program, maximum amount authorized for issuance							$ 300,000		$ 150,000
Preferred Stock | Series D Cumulative Redeemable Preferred Stock
Stockholders' equity
Number of shares redeemed (in shares)						(4,600,000)
Preferred Stock | Series E Cumulative Redeemable Preferred Stock
Stockholders' equity
Number of shares of preferred stock sold (in shares)						4,600,000
Preferred Stock | Series F Cumulative Redeemable Preferred Stock
Stockholders' equity
Number of shares of preferred stock sold (in shares)						3,000,000

Stockholders' Equity - Dividend

Stockholders' Equity - Dividends (Details) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Dividends
Common stock dividends declared (in dollars per share)	$ 0.69	$ 0.73	$ 0.68
Series D Cumulative Redeemable Preferred Stock
Dividends
Preferred stock dividends and dividends payable (in dollars per share)			0.527778
Series E Cumulative Redeemable Preferred Stock
Dividends
Preferred stock dividends and dividends payable (in dollars per share)	1.7375	1.7375	1.40445
Series F Cumulative Redeemable Preferred Stock
Dividends
Preferred stock dividends and dividends payable (in dollars per share)	1.6125	1.6125	1.00785
Common Stock
Dividends
Common stock dividends declared (in dollars per share)	$ 0.6900	$ 0.7300	$ 0.680000

Long-Term Incentive Plan (Detai

Long-Term Incentive Plan (Details) - USD ($) $ / shares in Units, $ in Thousands	Dec. 31, 2018	Apr. 30, 2018	Apr. 30, 2008	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Compensation expense and forfeitures
Capitalized compensation cost related to shares issued to design and construction employees				$ 376	$ 472	$ 591
Restricted Shares
Long-Term Incentive Plan
Number of common shares reserved for issuance under LTIP (in shares)	12,050,000			12,050,000
Number of shares available for future issuance (in shares)	4,419,784			4,419,784
Vesting period				3 years
Compensation expense and forfeitures
Amortization Expense, including forfeitures				$ 9,007	8,042	7,157
Capitalized compensation cost related to shares issued to design and construction employees				$ 400	$ 500	$ 600
Non-vested stock grants, number of shares
Outstanding at the beginning of the period (in shares)				1,175,049	1,095,908	986,345
Granted (in shares)				617,595	654,266	816,880
Vested (in shares)				(602,091)	(541,827)	(605,641)
Forfeited (in shares)				(12,793)	(33,298)	(101,676)
Outstanding at the end of the period (in shares)	1,177,760			1,177,760	1,175,049	1,095,908
Non-vested stock grants, weighted average price
Outstanding at the beginning of the period (in dollars per share)				$ 14.12	$ 13.36	$ 14.33
Granted (in dollars per share)				15.84	15.11	12.33
Vested (in dollars per share)				14.37	13.78	13.39
Forfeited (in dollars per share)				14.39	14.10	14.32
Outstanding at the end of the period (in dollars per share)	$ 14.89			$ 14.89	$ 14.12	$ 13.36
Compensation cost to be recognized related to non-vested restricted stock grants	$ 9,600			$ 9,600
Weighted average period over which compensation cost will be recognized	16 months
Stock Options | Former Chairman
Stock options
Number of options granted (in shares)			200,000
Expiration date of outstanding options		Apr. 1, 2018
Deferred shares, share purchase rights, or share appreciation rights issued or outstanding under the LTIP
Long-Term Incentive Plan
Number of awards other than grants outstanding	0			0

Commitments and Contingencies -

Commitments and Contingencies - Management Fees, Franchise Costs and Renovation Commitments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Basic and incentive management fees incurred
Other property-level expenses	$ 132,419	$ 138,525	$ 142,742
License and Franchise Agreements
Franchise assessments	25,966	26,902	26,399
Franchise royalties	9,457	9,779	10,248
Franchise costs	35,423	36,681	36,647
Basic management fees
Basic and incentive management fees incurred
Other property-level expenses	31,947	33,318	33,109
Incentive management fees
Basic and incentive management fees incurred
Other property-level expenses	7,169	6,301	6,071
Total basic and incentive management fees
Basic and incentive management fees incurred
Other property-level expenses	$ 39,116	$ 39,619	$ 39,180
Minimum
Management Agreements
Basic management fees (as a percent)	1.75%
Maximum
Management Agreements
Basic management fees (as a percent)	3.00%
Renovation and Construction Commitments
Renovation and Construction Commitments
Remaining construction commitments	$ 63,600

Commitments and Contingencies_2

Commitments and Contingencies - Capital and Operating Leases (Details)	12 Months Ended
	Dec. 31, 2018USD ($)property	Dec. 31, 2017USD ($)property	Dec. 31, 2016USD ($)property
Future minimum lease payments under capital leases
Capital lease obligation, noncurrent	$ 27,009,000	$ 26,804,000
Ground, Building and Air Leases
Number of hotels with ground, building and/or air leases | property	5	6	6
Number of ground leases | property	4	6	6
Number of building leases | property	1	1	1
Number of air leases | property	1	1	1
Total number of ground, building and air leases | property	6	8	8
Minimum rent, including straight-line adjustments	$ 7,358,000	$ 8,929,000	$ 9,140,000
Percentage rent	6,921,000	6,351,000	9,394,000
Total rent expense included in property tax, ground lease and insurance	14,279,000	15,280,000	18,534,000
Lease expense on corporate facility	1,200,000	200,000	$ 200,000
Future minimum payments under the terms of ground and air operating leases, and the lease on the corporate facility
2019 (annual)	8,159,000
2020 (annual)	8,441,000
2021 (annual)	8,486,000
2022 (annual)	8,531,000
2023 (annual)	8,576,000
Thereafter	159,190,000
Total	201,383,000
Hotels with capital leases
Assets under capital lease
Capital Leased Assets, Gross	65,404,000	65,404,000
Capital lease assets, net	55,727,000	$ 57,196,000
Future minimum lease payments under capital leases
2019 (annual)	2,357,000
2020 (annual)	2,357,000
2021 (annual)	2,389,000
2022 (annual)	2,453,000
2023 (annual)	2,453,000
Thereafter (annual)	136,220,000
Total minimum lease payments	148,229,000
Less: Amount representing interest	(121,219,000)
Present value of net minimum lease payments	27,010,000
Capital lease obligation, current	$ 1,000
Hyatt Centric Chicago Magnificent Mile
Future minimum lease payments under capital leases
Capital lease contingent rent criteria (as a percent)	4.00%	4.00%	4.00%
Hyatt Centric Chicago Magnificent Mile | Buildings and improvements
Assets under capital lease
Capital Leased Assets, Gross	$ 58,799,000	$ 58,799,000
Accumulated depreciation	(9,677,000)	(8,208,000)
Courtyard by Marriott Los Angeles | Land
Assets under capital lease
Capital Leased Assets, Gross	$ 6,605,000	$ 6,605,000

Commitments and Contingencies_3

Commitments and Contingencies - Other Commitments and Concentration of Risk (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)property	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Employment Agreements
Employment agreement obligations | $	$ 600
401(k) Savings and Hotel Retirement Plans
Age required for participating in 401(k) plan	21 years
Employment period required for participating in 401(k) plan	6 months
Other
Term of unsecured environmental indemnities	0 years
Damage limitation of unsecured environmental indemnities | $	$ 0
Safe Harbor Plan
401(k) Savings and Hotel Retirement Plans
Percentage of eligible employee annual base earnings contributed by the company (as a percent)	3.00%	3.00%	3.00%
Contributions to retirement plans | $	$ 200	$ 200	$ 200
Hotel retirement plans
401(k) Savings and Hotel Retirement Plans
Contributions to retirement plans | $	$ 1,600	$ 1,500	$ 1,600
California
Concentration of Risk
Number of hotels which are held for investment	6
Hawaii
Concentration of Risk
Number of hotels which are held for investment	1
Illinois
Concentration of Risk
Number of hotels which are held for investment	3
Massachusetts
Concentration of Risk
Number of hotels which are held for investment	2
Greater Washington DC area
Concentration of Risk
Number of hotels which are held for investment	2
Florida
Concentration of Risk
Number of hotels which are held for investment	2
Collective Bargaining Agreements
Concentration of Risk
Concentration risk (as a percent)	34.80%
Percentage of total rooms | California
Concentration of Risk
Concentration risk (as a percent)	32.00%
Percentage of total rooms | Hawaii
Concentration of Risk
Concentration risk (as a percent)	5.00%
Percentage of total rooms | Illinois
Concentration of Risk
Concentration risk (as a percent)	11.00%
Percentage of total rooms | Massachusetts
Concentration of Risk
Concentration risk (as a percent)	14.00%
Percentage of total rooms | Greater Washington DC area
Concentration of Risk
Concentration risk (as a percent)	13.00%
Percentage of total rooms | Florida
Concentration of Risk
Concentration risk (as a percent)	9.00%
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 | Hawaii
Concentration of Risk
Concentration risk (as a percent)	10.00%
Percentage of total revenue generated by hotels | Illinois
Concentration of Risk
Concentration risk (as a percent)	8.00%
Percentage of total revenue generated by hotels | Massachusetts
Concentration of Risk
Concentration risk (as a percent)	14.00%
Percentage of total revenue generated by hotels | Greater Washington DC area
Concentration of Risk
Concentration risk (as a percent)	12.00%
Percentage of total revenue generated by hotels | Florida
Concentration of Risk
Concentration risk (as a percent)	10.00%
Workers' compensation insurance programs
Other
Outstanding irrevocable letters of credit | $	$ 400
Draws on letters of credit | $	$ 0
Hotel owned by the Company
Concentration of Risk
Number of hotels which are held for investment	21

Quarterly Operating Results (_3

Quarterly Operating Results (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Quarterly Operating Results (Unaudited)
Revenues	$ 280,852	$ 289,308	$ 317,447	$ 271,446	$ 290,190	$ 303,909	$ 318,796	$ 280,743	$ 1,159,053	$ 1,193,638	$ 1,189,340
Operating income	45,506	48,088	61,855	26,441	34,948	13,072	62,703	30,282	298,851	186,479	188,828
Net income	$ 77,756	$ 91,586	$ 51,262	$ 38,455	$ 20,680	$ 17,082	$ 51,415	$ 63,827	$ 259,059	$ 153,004	$ 140,677
Income attributable to common stockholders per share - basic and diluted (in dollars per share)	$ 0.32	$ 0.38	$ 0.20	$ 0.15	$ 0.07	$ 0.05	$ 0.21	$ 0.27	$ 1.05	$ 0.59	$ 0.55

Schedule III-Real Estate and _2

Schedule III-Real Estate and Accumulated Depreciation (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)
Gross Amount at year end
Aggregate cost of properties for federal income tax purposes	$ 4,000,000
Hotel properties
Real Estate and Accumulated Depreciation
Encmbr	557,828
Initial costs
Land	553,176
Bldg. and Impr	2,281,149
Cost Capitalized Subsequent to Acquisition
Land	58,817
Bldg. and Impr	702,159
Gross Amount at year end
Land	611,993
Bldg. and Impr	2,983,308
Totals	3,595,301
Accum. Depr.	815,628
Boston Park Plaza | Hotel properties
Initial costs
Land	58,527
Bldg. and Impr	170,589
Cost Capitalized Subsequent to Acquisition
Bldg. and Impr	117,443
Gross Amount at year end
Land	58,527
Bldg. and Impr	288,032
Totals	346,559
Accum. Depr.	$ 55,307
Boston Park Plaza | Minimum
Gross Amount at year end
Depr. Life	5 years
Boston Park Plaza | Maximum
Gross Amount at year end
Depr. Life	35 years
Courtyard by Marriott Los Angeles | Hotel properties
Initial costs
Bldg. and Impr	$ 8,446
Cost Capitalized Subsequent to Acquisition
Land	6,605
Bldg. and Impr	14,124
Gross Amount at year end
Land	6,605
Bldg. and Impr	22,570
Totals	29,175
Accum. Depr.	$ 12,345
Courtyard by Marriott Los Angeles | Minimum
Gross Amount at year end
Depr. Life	5 years
Courtyard by Marriott Los Angeles | Maximum
Gross Amount at year end
Depr. Life	35 years
Embassy Suites Chicago | Hotel properties
Initial costs
Land	$ 79
Bldg. and Impr	46,886
Cost Capitalized Subsequent to Acquisition
Land	6,348
Bldg. and Impr	23,016
Gross Amount at year end
Land	6,427
Bldg. and Impr	69,902
Totals	76,329
Accum. Depr.	$ 33,993
Embassy Suites Chicago | Minimum
Gross Amount at year end
Depr. Life	5 years
Embassy Suites Chicago | Maximum
Gross Amount at year end
Depr. Life	35 years
Embassy Suites La Jolla | Hotel properties
Real Estate and Accumulated Depreciation
Encmbr	$ 60,489
Initial costs
Land	27,900
Bldg. and Impr	70,450
Cost Capitalized Subsequent to Acquisition
Bldg. and Impr	16,218
Gross Amount at year end
Land	27,900
Bldg. and Impr	86,668
Totals	114,568
Accum. Depr.	$ 34,848
Embassy Suites La Jolla | Minimum
Gross Amount at year end
Depr. Life	5 years
Embassy Suites La Jolla | Maximum
Gross Amount at year end
Depr. Life	35 years
Hilton Garden Inn Chicago Downtown/Magnificent Mile | Hotel properties
Initial costs
Land	$ 14,040
Bldg. and Impr	66,350
Cost Capitalized Subsequent to Acquisition
Bldg. and Impr	9,734
Gross Amount at year end
Land	14,040
Bldg. and Impr	76,084
Totals	90,124
Accum. Depr.	$ 10,893
Hilton Garden Inn Chicago Downtown/Magnificent Mile | Minimum
Gross Amount at year end
Depr. Life	5 years
Hilton Garden Inn Chicago Downtown/Magnificent Mile | Maximum
Gross Amount at year end
Depr. Life	50 years
Hilton New Orleans St. Charles | Hotel properties
Initial costs
Land	$ 3,698
Bldg. and Impr	53,578
Cost Capitalized Subsequent to Acquisition
Bldg. and Impr	9,375
Gross Amount at year end
Land	3,698
Bldg. and Impr	62,953
Totals	66,651
Accum. Depr.	$ 8,023
Hilton New Orleans St. Charles | Minimum
Gross Amount at year end
Depr. Life	5 years
Hilton New Orleans St. Charles | Maximum
Gross Amount at year end
Depr. Life	35 years
Hilton San Diego Bayfront | Hotel properties
Real Estate and Accumulated Depreciation
Encmbr	$ 220,000
Initial costs
Bldg. and Impr	424,992
Cost Capitalized Subsequent to Acquisition
Bldg. and Impr	11,021
Gross Amount at year end
Bldg. and Impr	436,013
Totals	436,013
Accum. Depr.	$ 62,764
Hilton San Diego Bayfront | Minimum
Gross Amount at year end
Depr. Life	5 years
Hilton San Diego Bayfront | Maximum
Gross Amount at year end
Depr. Life	57 years
Hilton Times Square | Hotel properties
Real Estate and Accumulated Depreciation
Encmbr	$ 79,656
Initial costs
Bldg. and Impr	221,488
Cost Capitalized Subsequent to Acquisition
Bldg. and Impr	32,158
Gross Amount at year end
Bldg. and Impr	253,646
Totals	253,646
Accum. Depr.	$ 106,699
Hilton Times Square | Minimum
Gross Amount at year end
Depr. Life	5 years
Hilton Times Square | Maximum
Gross Amount at year end
Depr. Life	35 years
Hyatt Centric Chicago Magnificent Mile | Hotel properties
Initial costs
Bldg. and Impr	$ 91,964
Cost Capitalized Subsequent to Acquisition
Bldg. and Impr	19,492
Gross Amount at year end
Bldg. and Impr	111,456
Totals	111,456
Accum. Depr.	$ 25,759
Hyatt Centric Chicago Magnificent Mile | Minimum
Gross Amount at year end
Depr. Life	5 years
Hyatt Centric Chicago Magnificent Mile | Maximum
Gross Amount at year end
Depr. Life	40 years
Hyatt Regency San Francisco | Hotel properties
Initial costs
Land	$ 116,140
Bldg. and Impr	131,430
Cost Capitalized Subsequent to Acquisition
Bldg. and Impr	50,310
Gross Amount at year end
Land	116,140
Bldg. and Impr	181,740
Totals	297,880
Accum. Depr.	$ 41,479
Hyatt Regency San Francisco | Minimum
Gross Amount at year end
Depr. Life	5 years
Hyatt Regency San Francisco | Maximum
Gross Amount at year end
Depr. Life	35 years
JW Marriott New Orleans | Hotel properties
Real Estate and Accumulated Depreciation
Encmbr	$ 83,649
Initial costs
Bldg. and Impr	73,420
Cost Capitalized Subsequent to Acquisition
Land	15,147
Bldg. and Impr	34,336
Gross Amount at year end
Land	15,147
Bldg. and Impr	107,756
Totals	122,903
Accum. Depr.	$ 20,040
JW Marriott New Orleans | Minimum
Gross Amount at year end
Depr. Life	5 years
JW Marriott New Orleans | Maximum
Gross Amount at year end
Depr. Life	35 years
Marriott Boston Long Wharf | Hotel properties
Initial costs
Land	$ 51,598
Bldg. and Impr	170,238
Cost Capitalized Subsequent to Acquisition
Bldg. and Impr	68,585
Gross Amount at year end
Land	51,598
Bldg. and Impr	238,823
Totals	290,421
Accum. Depr.	$ 83,713
Marriott Boston Long Wharf | Minimum
Gross Amount at year end
Depr. Life	5 years
Marriott Boston Long Wharf | Maximum
Gross Amount at year end
Depr. Life	35 years
Marriott Portland | Hotel properties
Initial costs
Land	$ 5,341
Bldg. and Impr	20,705
Cost Capitalized Subsequent to Acquisition
Bldg. and Impr	7,818
Gross Amount at year end
Land	5,341
Bldg. and Impr	28,523
Totals	33,864
Accum. Depr.	$ 15,371
Marriott Portland | Minimum
Gross Amount at year end
Depr. Life	5 years
Marriott Portland | Maximum
Gross Amount at year end
Depr. Life	35 years
Wailea Beach Resort | Hotel properties
Initial costs
Land	$ 119,707
Bldg. and Impr	194,137
Cost Capitalized Subsequent to Acquisition
Bldg. and Impr	104,934
Gross Amount at year end
Land	119,707
Bldg. and Impr	299,071
Totals	418,778
Accum. Depr.	$ 36,414
Wailea Beach Resort | Minimum
Gross Amount at year end
Depr. Life	5 years
Wailea Beach Resort | Maximum
Gross Amount at year end
Depr. Life	40 years
Oceans Edge Resort & Marina | Hotel properties
Initial costs
Land	$ 92,510
Bldg. and Impr	74,361
Cost Capitalized Subsequent to Acquisition
Bldg. and Impr	523
Gross Amount at year end
Land	92,510
Bldg. and Impr	74,884
Totals	167,394
Accum. Depr.	$ 3,156
Oceans Edge Resort & Marina | Minimum
Gross Amount at year end
Depr. Life	5 years
Oceans Edge Resort & Marina | Maximum
Gross Amount at year end
Depr. Life	40 years
Renaissance Harborplace | Hotel properties
Initial costs
Land	$ 25,085
Bldg. and Impr	102,707
Cost Capitalized Subsequent to Acquisition
Bldg. and Impr	27,060
Gross Amount at year end
Land	25,085
Bldg. and Impr	129,767
Totals	154,852
Accum. Depr.	$ 56,060
Renaissance Harborplace | Minimum
Gross Amount at year end
Depr. Life	5 years
Renaissance Harborplace | Maximum
Gross Amount at year end
Depr. Life	35 years
Renaissance Los Angeles Airport | Hotel properties
Initial costs
Land	$ 7,800
Bldg. and Impr	52,506
Cost Capitalized Subsequent to Acquisition
Bldg. and Impr	18,659
Gross Amount at year end
Land	7,800
Bldg. and Impr	71,165
Totals	78,965
Accum. Depr.	$ 24,845
Renaissance Los Angeles Airport | Minimum
Gross Amount at year end
Depr. Life	5 years
Renaissance Los Angeles Airport | Maximum
Gross Amount at year end
Depr. Life	35 years
Renaissance Long Beach | Hotel properties
Initial costs
Land	$ 10,437
Bldg. and Impr	37,300
Cost Capitalized Subsequent to Acquisition
Bldg. and Impr	25,515
Gross Amount at year end
Land	10,437
Bldg. and Impr	62,815
Totals	73,252
Accum. Depr.	$ 24,338
Renaissance Long Beach | Minimum
Gross Amount at year end
Depr. Life	5 years
Renaissance Long Beach | Maximum
Gross Amount at year end
Depr. Life	35 years
Renaissance Orlando at SeaWorld | Hotel properties
Initial costs
Bldg. and Impr	$ 119,733
Cost Capitalized Subsequent to Acquisition
Land	30,717
Bldg. and Impr	42,303
Gross Amount at year end
Land	30,717
Bldg. and Impr	162,036
Totals	192,753
Accum. Depr.	$ 69,304
Renaissance Orlando at SeaWorld | Minimum
Gross Amount at year end
Depr. Life	5 years
Renaissance Orlando at SeaWorld | Maximum
Gross Amount at year end
Depr. Life	35 years
Renaissance Washington DC | Hotel properties
Real Estate and Accumulated Depreciation
Encmbr	$ 114,034
Initial costs
Land	14,563
Bldg. and Impr	132,800
Cost Capitalized Subsequent to Acquisition
Bldg. and Impr	46,939
Gross Amount at year end
Land	14,563
Bldg. and Impr	179,739
Totals	194,302
Accum. Depr.	$ 77,534
Renaissance Washington DC | Minimum
Gross Amount at year end
Depr. Life	5 years
Renaissance Washington DC | Maximum
Gross Amount at year end
Depr. Life	35 years
Renaissance Westchester | Hotel properties
Initial costs
Land	$ 5,751
Bldg. and Impr	17,069
Cost Capitalized Subsequent to Acquisition
Bldg. and Impr	22,596
Gross Amount at year end
Land	5,751
Bldg. and Impr	39,665
Totals	45,416
Accum. Depr.	$ 12,743
Renaissance Westchester | Minimum
Gross Amount at year end
Depr. Life	5 years
Renaissance Westchester | Maximum
Gross Amount at year end
Depr. Life	35 years
Amended Credit Facility
Gross Amount at year end
Outstanding indebtedness under credit facility	$ 0

Schedule III-Reconciliation of

Schedule III-Reconciliation of Carrying Amounts and Accumulated Depreciation (Details) - Hotel properties - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Reconciliation of land and buildings and improvements
Balance at the beginning of the year	$ 3,654,623	$ 3,667,466	$ 3,652,222
Acquisitions	15,147	166,871
Improvements	96,481	91,067	159,786
Impairment loss	(1,797)	(67,345)
Changes in reporting presentation	171,675	(53,047)	(112,023)
Dispositions	(340,828)	(150,389)	(32,519)
Balance at the end of the year	3,595,301	3,654,623	3,667,466
Reconciliation of accumulated depreciation
Balance at the beginning of the year	776,077	803,913	707,737
Depreciation	108,175	112,176	107,409
Changes in reporting presentation	56,872	(87,427)
Retirement	(125,496)	(52,585)	(11,233)
Balance at the end of the year	$ 815,628	$ 776,077	$ 803,913