Sunstone Hotel Investors (SHO) 10-Q 8 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 06, 2019
Document and Entity Information
Entity Registrant Name	Sunstone Hotel Investors, Inc.
Entity Central Index Key	0001295810
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		228,639,287
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 683,995	$ 809,316
Restricted cash	50,746	53,053
Accounts receivable, net	42,306	33,844
Prepaid expenses and other current assets	15,342	12,261
Total current assets	792,389	908,474
Investment in hotel properties, net	2,946,796	3,030,998
Finance lease right-of-use assets, net	55,359
Operating lease right-of-use assets, net	63,235
Deferred financing costs, net	3,338	3,544
Other assets, net	29,540	29,817
Total assets	3,890,657	3,972,833
Current liabilities:
Accounts payable and accrued expenses	34,668	30,425
Accrued payroll and employee benefits	17,102	25,039
Dividends and distributions payable	14,636	126,461
Other current liabilities	39,912	44,962
Current portion of notes payable, net	6,064	5,838
Total current liabilities	112,382	232,725
Notes payable, less current portion, net	969,657	971,225
Finance lease obligations, less current portion	27,064	27,009
Operating lease obligations, less current portion	53,276
Other liabilities	17,991	30,703
Total liabilities	1,180,370	1,261,662
Commitments and contingencies (Note 11)
Equity
Common stock, $0.01 par value, 500,000,000 shares authorized, 228,587,447 shares issued and outstanding at March 31, 2019 and 228,246,247 shares issued and outstanding at December 31, 2018	2,286	2,282
Additional paid in capital	2,726,466	2,728,684
Retained earnings	1,199,039	1,182,722
Cumulative dividends and distributions	(1,454,838)	(1,440,202)
Total stockholders' equity	2,662,953	2,663,486
Noncontrolling interest in consolidated joint venture	47,334	47,685
Total equity	2,710,287	2,711,171
Total liabilities and equity	3,890,657	3,972,833
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	1 Months Ended		3 Months Ended	12 Months Ended
	May 31, 2016	Mar. 31, 2016	Mar. 31, 2019	Dec. 31, 2018
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)			228,587,447	228,246,247
Common stock, shares outstanding (in shares)			228,587,447	228,246,247
Series E Cumulative Redeemable Preferred Stock
Preferred stock, Cumulative Redeemable Preferred Stock, dividend rate (as a percent)		6.95%	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	$ 25
Series F Cumulative Redeemable Preferred Stock
Preferred stock, Cumulative Redeemable Preferred Stock, dividend rate (as a percent)	6.45%		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	$ 25

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
REVENUES
Total revenues	$ 257,680	$ 271,446
OPERATING EXPENSES
Advertising and promotion	13,564	13,906
Repairs and maintenance	10,282	11,103
Utilities	6,665	7,475
Franchise costs	6,839	7,853
Property tax, ground lease and insurance	20,348	21,781
Other property-level expenses	32,840	33,907
Corporate overhead	7,516	7,102
Depreciation and amortization	36,387	36,688
Total operating expenses	233,474	245,005
Interest and other income	4,924	1,491
Interest expense	(14,326)	(8,876)
Gain on sale of assets		15,659
Income before income taxes	14,804	34,715
Income tax benefit, net	3,112	3,740
NET INCOME	17,916	38,455
Income from consolidated joint venture attributable to noncontrolling interest	(1,599)	(2,439)
Preferred stock dividends	(3,207)	(3,207)
INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS	$ 13,110	$ 32,809
Basic and diluted per share amounts:
Basic and diluted income attributable to common stockholders per common share (in dollars per share)	$ 0.06	$ 0.15
Basic and diluted weighted average common shares outstanding (in shares)	227,219	224,282
Distributions declared per common share (in dollars per share)	$ 0.05	$ 0.05
Room
REVENUES
Revenues	$ 171,858	$ 180,276
OPERATING EXPENSES
Expenses	48,246	51,095
Food and beverage
REVENUES
Revenues	69,113	74,266
OPERATING EXPENSES
Expenses	46,822	50,154
Other operating
REVENUES
Revenues	16,709	16,904
OPERATING EXPENSES
Expenses	$ 3,965	$ 3,941

CONSOLIDATED STATEMENTS OF EQUI

CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands	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, 2017	$ 115,000			$ 75,000			$ 2,253	$ 2,679,221	$ 932,277	$ (1,270,013)	$ 48,440	$ 2,582,178
Beginning Balance (in shares) at Dec. 31, 2017	4,600,000			3,000,000			225,321,660
Increase (Decrease) in Stockholders' Equity
Amortization of deferred stock compensation								2,113				2,113
Issuance of restricted common stock, net							$ 3	(4,235)				(4,232)
Issuance of restricted common stock, net (in shares)							297,013
Forfeiture of restricted common stock (in shares)							(3,961)
Common stock distributions and distributions payable										(11,281)		(11,281)
Preferred stock dividends and dividends payable		$ (1,998)	$ (1,998)		$ (1,209)	$ (1,209)
Distributions to noncontrolling interest											(1,169)	(1,169)
Net income									36,016		2,439	38,455
Ending Balance at Mar. 31, 2018	$ 115,000			$ 75,000			$ 2,256	2,677,099	968,293	(1,284,501)	49,710	2,602,857
Ending Balance (in shares) at Mar. 31, 2018	4,600,000			3,000,000			225,614,712
Beginning Balance at Dec. 31, 2018	$ 115,000			$ 75,000			$ 2,282	2,728,684	1,182,722	(1,440,202)	47,685	2,711,171
Beginning Balance (in shares) at Dec. 31, 2018	4,600,000			3,000,000			228,246,247
Increase (Decrease) in Stockholders' Equity
Amortization of deferred stock compensation								2,221				2,221
Issuance of restricted common stock, net							$ 4	(4,439)				(4,435)
Issuance of restricted common stock, net (in shares)							345,132
Forfeiture of restricted common stock (in shares)							(3,932)
Common stock distributions and distributions payable										(11,429)		(11,429)
Preferred stock dividends and dividends payable		$ (1,998)	$ (1,998)		$ (1,209)	$ (1,209)
Distributions to noncontrolling interest											(1,950)	(1,950)
Net income									16,317		1,599	17,916
Ending Balance at Mar. 31, 2019	$ 115,000			$ 75,000			$ 2,286	$ 2,726,466	$ 1,199,039	$ (1,454,838)	$ 47,334	$ 2,710,287
Ending Balance (in shares) at Mar. 31, 2019	4,600,000			3,000,000			228,587,447

CONSOLIDATED STATEMENT OF EQUIT

CONSOLIDATED STATEMENT OF EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Common stock distributions and distributions payable, per share (in dollars per share)	$ 0.05	$ 0.05
Series E Cumulative Redeemable Preferred Stock
Preferred stock dividends and dividends payable (in dollars per share)	0.434375	0.434375
Series F Cumulative Redeemable Preferred Stock
Preferred stock dividends and dividends payable (in dollars per share)	$ 0.403125	$ 0.403125

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		24 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 17,916	$ 38,455
Adjustments to reconcile net income to net cash provided by operating activities:
Bad debt expense	180	82
Gain on sale of assets		(15,669)
Noncash interest on derivatives and finance lease obligations, net	2,119	(3,137)
Depreciation	36,345	36,008
Amortization of franchise fees and other intangibles	42	746
Amortization of right-of-use assets	(19)
Amortization of deferred financing costs	698	747
Amortization of deferred stock compensation	2,122	2,000
Deferred income taxes, net	(3,284)	(3,966)
Changes in operating assets and liabilities:
Accounts receivable	(8,642)	(13,096)
Prepaid expenses and other assets	(2,131)	(3,575)
Accounts payable and other liabilities	(5,837)	514
Accrued payroll and employee benefits	(7,937)	(8,513)
Net cash provided by operating activities	31,572	30,596
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales of assets		136,993
Renovations and additions to hotel properties and other assets	(24,520)	(39,321)
Net cash (used in) provided by investing activities	(24,520)	97,672
CASH FLOWS FROM FINANCING ACTIVITIES
Repurchase of common stock for employee withholding obligations	(4,435)	(4,232)
Payments on notes payable	(1,834)	(1,893)
Payments of deferred financing costs		(5)
Dividends and distributions paid	(126,461)	(133,894)
Distributions to noncontrolling interest	(1,950)	(1,169)
Net cash used in financing activities	(134,680)	(141,193)
Net decrease in cash and cash equivalents and restricted cash	(127,628)	(12,925)
Cash and cash equivalents and restricted cash, beginning of period	862,369	559,311
Cash and cash equivalents and restricted cash, end of period	734,741	546,386	$ 862,369
Supplemental Disclosure of Cash Flow Information
Cash and cash equivalents	683,995	467,050	809,316
Restricted cash	50,746	79,336	53,053
Cash and cash equivalents and restricted cash, end of period	734,741	546,386	$ 862,369
Cash paid for interest	14,292	13,618
Cash paid for income taxes	137	35
Supplemental Disclosure of Noncash Investing and Financing Activties
Accrued renovations and additions to hotel properties and other assets	11,639	17,214
Amortization of deferred stock compensation - construction activities	99	113
Dividends and distributions payable	$ 14,636	$ 14,488

Organization and Description of

Organization and Description of Business	3 Months Ended
	Mar. 31, 2019
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 March 31, 2019, 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 March 31, 2019 21

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2019
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 March 31, 2019 and December 31, 2018, and for the three months ended March 31, 2019 and 2018, 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 accompanying interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and in conformity with the rules and regulations of the Securities and Exchange Commission. In the Company’s opinion, the interim financial statements presented herein reflect all adjustments, consisting solely of normal and recurring adjustments, which are necessary to fairly present the interim financial statements. These financial statements should be read in conjunction with the financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018, filed with the Securities and Exchange Commission on February 14, 2019. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. 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. Certain prior year amounts in these financial statements have been reclassified to conform to the presentation for the three months ended March 31, 2019. The Company has evaluated subsequent events through the date of issuance of these financial statements. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Earnings Per Share The Company applies the two-class method when computing its earnings per share. Net income per share for each class of 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 (unaudited and in thousands, except per share data): Three Months Ended March 31, 2019 2018 Numerator: Net income $ 17,916 $ 38,455 Income from consolidated joint venture attributable to noncontrolling interest (1,599) (2,439) Preferred stock dividends (3,207) (3,207) Distributions paid on unvested restricted stock compensation (61) (59) Undistributed income allocated to unvested restricted stock compensation (9) (117) Numerator for basic and diluted income attributable to common stockholders $ 13,040 $ 32,633 Denominator: Weighted average basic and diluted common shares outstanding 227,219 224,282 Basic and diluted income attributable to common stockholders per common share $ 0.06 $ 0.15 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 three months ended March 31, 2019 and 2018, as their inclusion would have been anti-dilutive. 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 both March 31, 2019 and December 31, 2018, the noncontrolling interest reported in the Company’s consolidated financial statements consisted of a third-party’s 25.0% ownership interest in the Hilton San Diego Bayfront. Investment 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 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. 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. 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. 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): March 31, December 31, 2019 2018 (unaudited) Trade receivables, net (1) $ 20,566 $ 18,982 Contract liabilities (2) $ 16,911 $ 16,711 (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 both other current liabilities and other liabilities on the accompanying consolidated balance sheets. Of the amount outstanding at December 31, 2018, approximately $12.9 million was recognized in revenue during the three months ended March 31, 2019. 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. New Accounting Standards and Accounting Changes In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-02, “ Leases (Topic 842) ” (“ASU No. 2016-02”), which requires companies to record a right-of-use asset and a lease liability on the balance sheet for all leases with a term greater than 12 months regardless of their classification. All entities will classify leases as either operating or finance to determine how to recognize lease-related revenue and expense. Classification will continue to affect amounts that lessees and lessors record on the balance sheet. The new standard requires the following: · Lessees: Leases are accounted for using a dual approach, classifying leases as either operating or financing based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification determines whether the lease expense is recognized on a straight-line basis over the term of the lease (for operating leases) or based on an effective interest method (for finance leases). A lessee is required to record a right-of-use asset and a lease liability on its balance sheet for all leases with a term of greater than 12 months regardless of their classification as operating or finance leases. · Lessors: Leases are accounted for using an approach that is substantially equivalent to existing guidance for operating, sales-type and financing leases, but aligned with the FASB’s revenue standard. Subsequent to the issuance of ASU No. 2016-02, the FASB issued several clarifications and updates, including Accounting Standards Update No. 2018-01, “ Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842 ” (“ASU No. 2018-01”) in January 2018, 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”) in July 2018, Accounting Standards Update No. 2018-20, “ Leases (Topic 842): Narrow-Scope Improvements for Lessors ” (“ASU No. 2018-20”) in December 2018 and Accounting Standards Update No. 2019-01, “ Leases (Topic 842): Codification Improvements ” (“ASU No. 2019-01”) in March 2019. The Company adopted ASU No. 2016-02 on January 1, 2019, along with its related clarifications and amendments, and made the following elections: · to not separate lease components from nonlease components by underlying asset. By making this election, the Company is required to account for the nonlease components together with the related lease components as a single lease component (ASU No. 2016-02); · to not reassess whether a land easement not previously accounted for as a lease would now be a lease (ASU No. 2018-01); · to not reassess whether an expired or existing contract meets the definition of a lease ( ASU No. 2018-11) ; · to not reassess the lease classification at the adoption date for existing leases ( ASU No. 2018-11) ; · to not reassess whether costs previously capitalized as initial direct costs would continue to be amortized (ASU No. 2018-11); · to apply the optional modified retrospective transition approach, allowing companies to initially apply the standard at the adoption date without revising comparable periods ( ASU No. 2018-11); and · to not evaluate whether sales taxes and other similar taxes imposed by a governmental authority on a specific lease revenue-producing transaction are the primary obligation of the lessor as owner of the underlying leased asset (ASU No. 2018-20). Lessee Perspective : Adoption of the new standard resulted in the Company recording net balance sheet adjustments for right-of-use (“ROU”) assets and related lease obligations totaling $45.7 million for its operating leases. The Company also reclassified an $18.4 million ground lease intangible asset, net of accumulated amortization, from investment in hotel properties, net to operating lease ROU assets, net, and reclassified its existing deferred rent liabilities related to its operating leases totaling $13.0 million from other liabilities to operating lease obligations. The adjustments related to operating leases affected the Company’s January 1, 2019 consolidated balance sheet as follows (in thousands): Balance Pre-Adoption Adjustments Balance Post-Adoption (unaudited) (unaudited) Operating lease right-of-use assets, net $ — $ 64,075 $ 64,075 Investment in hotel properties, net (intangible assets) $ 50,889 (18,398) $ 32,491 Total asset adjustments $ 45,677 Operating lease obligations, current and noncurrent $ — $ 58,663 $ 58,663 Other liabilities (deferred rent) $ 12,986 (12,986) $ — Total liability adjustments $ 45,677 Upon adoption of the new standard, the Company reclassified amounts related to its finance leases as follows (in thousands): Balance Pre-Adoption Adjustments Balance Post-Adoption (unaudited) (unaudited) Finance lease right-of-use assets, net $ — $ 55,727 $ 55,727 Investment in hotel properties, net (land) $ 611,993 (6,605) $ 605,388 Investment in hotel properties, net (buildings and improvements, net of accumulated depreciation) $ 2,167,680 (49,122) $ 2,118,558 Total asset adjustments $ — Finance lease obligations, current and noncurrent $ — $ 27,010 $ 27,010 Capital lease obligations, current and noncurrent $ 27,010 (27,010) $ — Total liability adjustments $ — The Company determines if a contract is a lease at inception. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Expense for these short-term leases is recognized on a straight-line basis over the lease term. For leases with an initial term greater than 12 months, the Company records a ROU asset and a corresponding lease obligation. ROU assets represent the Company’s right to use an underlying asset for the lease term, and lease obligations represent the Company’s obligation to make fixed lease payments as stipulated by the lease. Operating lease obligations are recognized at the lease commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate (“IBR”) based on information available at the commencement date in determining the present value of lease payments over the lease term. The IBR is the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. In order to estimate the Company’s IBR, the Company first looks to its own unsecured debt offerings, and adjusts the rate for both length of term and secured borrowing using available market data as well as consultations with leading national financial institutions that are active in the issuance of both secured and unsecured notes. Operating lease ROU assets are recognized at the lease commencement date, and include the amount of the initial operating lease obligation, any lease payments made at or before the commencement date, excluding any lease incentives received, and any initial direct costs incurred. For leases that have extension options that the Company can exercise at its discretion, management uses judgement to determine if it is reasonably certain that the Company will in fact exercise such option. If the extension option is reasonably certain to occur, the Company includes the extended term’s lease payments in the calculation of the respective lease liability. None of the Company’s leases contain any material residual value guarantees or material restrictive covenants. The Company reviews its right-of-use assets for indicators of impairment. 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. Lessor Perspective : For lease agreements in which the Company is the lessor, the Company analyzed the impact of the standard and determined that there was no material impact to the recognition, measurement, or presentation of these revenues. Upon adoption, the Company analyzed the lease and nonlease components, including real estate taxes and common area maintenance expenses, of its lease agreements and determined that the timing and pattern of transfer for both components are the same. In addition, the Company determined that the predominate component was the lease component and, as such, the leases will continue to qualify as operating leases and the Company will account for and present the lease component and the nonlease component as a single component. The Company will continue to collect nonlease amounts directly from its tenants, including real estate taxes and other expenses, and remit these amounts directly to third-parties. None of the Company’s tenants pay third-parties directly. The Company believes that all of its tenant receivables are probable of collection as of March 31, 2019. See Note 8 for additional lease disclosures. 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.

Investment in Hotel Properties

Investment in Hotel Properties	3 Months Ended
	Mar. 31, 2019
Investment in Hotel Properties
Investment in Hotel Properties	3. Investment in Hotel Properties Investment in hotel properties, net consisted of the following (in thousands): March 31, December 31, 2019 2018 (unaudited) Land $ 605,388 $ 611,993 Buildings and improvements 2,950,723 2,983,308 Furniture, fixtures and equipment 492,317 486,441 Intangible assets 33,161 56,021 Franchise fees 778 778 Construction in progress 54,366 60,744 Investment in hotel properties, gross 4,136,733 4,199,285 Accumulated depreciation and amortization (1,189,937) (1,168,287) Investment in hotel properties, net $ 2,946,796 $ 3,030,998

Fair Value Measurements and Int

Fair Value Measurements and Interest Rate Derivatives	3 Months Ended
	Mar. 31, 2019
Fair Value Measurements and Interest Rate Derivatives
Fair Value Measurements and Interest Rate Derivatives	4. Fair Value Measurements and Interest Rate Derivatives Fair Value Measurements As of March 31, 2019 and December 31, 2018, 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 March 31, 2019 and December 31, 2018, 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. The following table presents the Company’s assets measured at fair value on a recurring and nonrecurring basis at March 31, 2019 and December 31, 2018 (in thousands): Fair Value Measurements at Reporting Date Total Level 1 Level 2 Level 3 March 31, 2019 (unaudited): Interest rate cap derivatives $ — $ — $ — $ — Interest rate swap derivatives 2,725 — 2,725 — Life insurance policy (1) 398 — 398 — Total assets measured at fair value at March 31, 2019 $ 3,123 $ — $ 3,123 $ — 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 $ — (1) Includes the split life insurance policy for a former Company associate. These amounts are included in other assets, net on the accompanying consolidated balance sheets, and will be used to reimburse the Company for payments made to the former associate from the related retirement benefit agreement, which is included in accrued payroll and employee benefits on the accompanying consolidated balance sheets. The following table presents the Company’s liabilities measured at fair value on a recurring and nonrecurring basis at March 31, 2019 and December 31, 2018 (in thousands): Fair Value Measurements at Reporting Date Total Level 1 Level 2 Level 3 March 31, 2019 (unaudited): Retirement benefit agreement (1) $ 398 $ — $ 398 $ — Total liabilities measured at fair value at March 31, 2019 $ 398 $ — $ 398 $ — December 31, 2018: Retirement benefit agreement (1) $ 386 $ — $ 386 $ — Total liabilities measured at fair value at December 31, 2018 $ 386 $ — $ 386 $ — (1) Includes the retirement benefit agreement for a former Company associate. The agreement calls for the balance of the retirement benefit to be paid out to the former associate in ten annual installments, beginning in 2011. As such, the Company has paid the former associate a total of $1.6 million through March 31, 2019, which was reimbursed to the Company using funds from the related split life insurance policy noted above. These amounts are included in accrued payroll and employee benefits on the accompanying consolidated balance sheets. Interest Rate Derivatives The Company’s interest rate derivatives, which are not designated as effective cash flow hedges, consisted of the following at March 31, 2019 (unaudited) and December 31, 2018 (in thousands): Estimated Fair Value of Assets (1) Strike / Capped Effective Maturity Notional March 31, December 31, Hedged Debt Type Rate Index Date Date Amount 2019 2018 Hilton San Diego Bayfront Cap 4.250 % 1-Month LIBOR May 1, 2017 May 1, 2019 $ 107,515 $ — $ — Hilton San Diego Bayfront Cap 6.000 % 1-Month LIBOR November 10, 2017 December 9, 2020 $ 220,000 — — $85.0 million term loan Swap 1.591 % 1-Month LIBOR October 29, 2015 September 2, 2022 $ 85,000 1,616 2,521 $100.0 million term loan Swap 1.853 % 1-Month LIBOR January 29, 2016 January 31, 2023 $ 100,000 1,109 2,268 $ 2,725 $ 4,789 (1) The fair values of the cap and swap agreements are included in other assets, net on the accompanying consolidated balance sheets as of both March 31, 2019 and December 31, 2018. Noncash changes in the fair values of the Company’s interest rate derivatives resulted in increases (decreases) to interest expense for the three months ended March 31, 2019 and 2018 as follows (unaudited and in thousands): Three Months Ended March 31, 2019 2018 Noncash interest on derivatives $ 2,064 $ (3,187) Fair Value of Debt As of both March 31, 2019 and December 31, 2018, 77.6% 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 March 31, 2019 (unaudited) and December 31, 2018 were as follows (in thousands): March 31, 2019 December 31, 2018 Carrying Amount (1) Fair Value Carrying Amount (1) Fair Value Debt $ 980,996 $ 972,535 $ 982,828 $ 971,082 (1) The principal balance of debt is presented before any unamortized deferred financing costs.

Other Assets

Other Assets	3 Months Ended
	Mar. 31, 2019
Other Assets
Other Assets	5. Other Assets Other assets, net consisted of the following (in thousands): March 31, December 31, 2019 2018 (unaudited) Property and equipment, net $ 8,183 $ 8,426 Goodwill 990 990 Deferred rent on straight-lined third-party tenant leases 3,117 3,177 Deferred income tax asset, net 11,387 8,407 Interest rate derivatives 2,725 4,789 Other receivables 2,331 3,209 Other 807 819 Total other assets, net $ 29,540 $ 29,817

Notes Payable

Notes Payable	3 Months Ended
	Mar. 31, 2019
Notes Payable
Notes Payable	6. Notes Payable Notes payable consisted of the following (in thousands): March 31, December 31, 2019 2018 (unaudited) Notes payable requiring payments of interest and principal, with fixed rates ranging from 4.12% to 5.95%; maturing at dates ranging from November 2020 through January 2025. The notes are collateralized by first deeds of trust on four hotel properties at both March 31, 2019 and December 31, 2018. $ 335,996 $ 337,828 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, 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%. 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, 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%. 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 $ 980,996 $ 982,828 Current portion of notes payable $ 8,030 $ 7,804 Less: current portion of deferred financing costs (1,966) (1,966) Carrying value of current portion of notes payable $ 6,064 $ 5,838 Notes payable, less current portion $ 972,966 $ 975,024 Less: long-term portion of deferred financing costs (3,309) (3,799) Carrying value of notes payable, less current portion $ 969,657 $ 971,225 As of March 31, 2019, the Company has no outstanding amounts due under its credit facility. Interest Expense Total interest incurred and expensed on the notes payable was as follows (unaudited and in thousands): Three Months Ended March 31, 2019 2018 Interest expense on debt and finance lease obligations $ 11,509 $ 11,266 Noncash interest on derivatives and finance lease obligations, net 2,119 (3,137) Amortization of deferred financing costs 698 747 Total interest expense $ 14,326 $ 8,876

Other Current Liabilities and O

Other Current Liabilities and Other Liabilities	3 Months Ended
	Mar. 31, 2019
Other Current Liabilities and Other Liabilities
Other Current Liabilities and Other Liabilities	7. Other Current Liabilities and Other Liabilities Other Current Liabilities Other current liabilities consisted of the following (in thousands): March 31, December 31, 2019 2018 (unaudited) Property, sales and use taxes payable $ 13,959 $ 15,684 Income tax payable 136 125 Accrued interest 4,367 7,306 Advance deposits 16,551 16,711 Management fees payable 1,163 1,142 Other 3,736 3,994 Total other current liabilities $ 39,912 $ 44,962 Other Liabilities Other liabilities consisted of the following (in thousands): March 31, December 31, 2019 2018 (unaudited) Deferred revenue $ 5,305 $ 5,017 Deferred rent — 12,986 Deferred property taxes payable 9,541 9,284 Deferred income tax liability — 304 Other 3,145 3,112 Total other liabilities $ 17,991 $ 30,703

Leases

Leases	3 Months Ended
	Mar. 31, 2019
Leases
Leases	8. Leases Lessee Accounting The Company has both operating and finance leases for ground, building, office and air leases, maturing in dates ranging from 2028 through 2097, including expected renewal options. Including all renewal options available to the Company, the lease maturity date extends to 2147. Leases were included on the Company’s consolidated balance sheet as follows (in thousands): March 31, 2019 (unaudited) Finance Leases: Right-of-use assets, net (land) $ 6,605 Right-of-use assets, net (buildings and improvements) 58,799 Accumulated amortization (10,045) Right-of-use assets, net $ 55,359 Accounts payable and accrued expenses $ 1 Lease obligations, less current portion 27,064 Total lease obligations $ 27,065 Operating Leases: Right-of-use assets, net $ 63,235 Accounts payable and accrued expenses $ 4,528 Lease obligations, less current portion 53,276 Total lease obligations $ 57,804 Weighted Average Remaining Lease Term: Finance leases 53.2 years Operating leases 24.5 years Weighted Average Discount Rate: Finance leases 9.5 % Operating leases 5.3 % The components of lease expense were as follows (in thousands): Three Months Ended March 31, 2019 (unaudited) Finance lease cost: Amortization of right-of-use assets $ 368 Interest on lease obligations 644 Total finance lease cost $ 1,012 Operating lease cost (1) $ 3,149 (1) Several of the Company’s hotels pay percentage rent, which is calculated on operating revenues above certain thresholds. During the three months ended March 31, 2019, the Company recorded $1.4 million in percentage rent related to its operating leases. Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended March 31, 2019 (unaudited) Cash paid for amounts included in the measurement of lease obligations: Operating cash flows from operating leases $ 1,632 Operating cash flows from finance leases $ — Finance cash flows from finance leases $ — Right-of-use assets obtained in exchange for lease obligations upon adoption of ASU No. 2016-02: Operating leases $ 45,677 Finance leases $ — Future maturities of the Company’s operating and finance lease obligations at March 31, 2019 were as follows (in thousands): Operating Leases Finance Leases (unaudited) (unaudited) 2019 $ 7,480 $ 2,357 2020 7,532 2,357 2021 7,583 2,413 2022 7,635 2,453 2023 7,689 2,453 Thereafter 79,789 135,607 Total lease payments 117,708 147,640 Less: interest (1) (59,904) (120,575) Present value of lease obligations $ 57,804 $ 27,065 (1) Calculated using the appropriate discount rate for each lease. Lessor Accounting During the three months ended March 31, 2019, the Company recognized $2.6 million in lease-related revenue, which is included in other operating revenue on the Company’s unaudited statement of operations.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2019
Stockholders' Equity
Stockholders' Equity	9. Stockholders’ Equity Series E Cumulative Redeemable Preferred Stock In March 2016, the Company issued 4,600,000 shares of its 6.95% Series E Cumulative Redeemable Preferred Stock (“Series E preferred stock”) with a liquidation preference of $25.00 per share for gross proceeds of $115.0 million. In conjunction with the offering, the Company incurred $4.0 million in preferred offering costs. On or after March 11, 2021, the Series E preferred stock will be redeemable at the Company’s option, in whole or in part, at any time or from time to time, for cash at a redemption price of $25.00 per share, plus accrued and unpaid dividends up to, but not including, the redemption date. 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 6.45% Series F Cumulative Redeemable Preferred Stock (“Series F preferred stock”) with a liquidation preference of $25.00 per share for gross proceeds of $75.0 million. In conjunction with the offering, the Company incurred $2.6 million in preferred offering costs. On or after May 17, 2021, the Series F preferred stock will be redeemable at the Company’s option, in whole or in part, at any time or from time to time, for cash at a redemption price of $25.00 per share, plus accrued and unpaid dividends up to, but not including, the redemption date. 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 2017, the Company entered into separate “At the Market” Agreements (the “ATM Agreements”) with each of Merrill Lynch, Pierce, Fenner & Smith Incorporated, J.P. Morgan Securities LLC and Wells Fargo Securities, LLC . In accordance with the terms of the ATM Agreements, the Company may from time to time offer and sell shares of its common stock having an aggregate offering price of up to $300.0 million. The Company did not issue any shares of its common stock in connection with the ATM agreements during the three months ended March 31, 2019. During 2017 and 2018, the Company issued a total of 7,467,709 shares of its common stock in connection with the ATM Agreements for gross proceeds of $124.5 million, leaving $175.5 million available for sale under the ATM Agreements. The Company paid a total of $2.3 million in costs during 2017 and 2018 in connection with common stock issued under the ATM Agreements. In February 2017, the Company’s board of directors authorized a share repurchase plan to acquire up to $300.0 million of the Company’s common and preferred stock. As of March 31, 2019, no shares of either the Company’s common or preferred stock have been repurchased. Future purchases will depend on various factors, including the Company’s capital needs, as well as the Company’s common and preferred stock price.

Long-Term Incentive Plan

Long-Term Incentive Plan	3 Months Ended
	Mar. 31, 2019
Long-Term Incentive Plan
Long-Term Incentive Plan	10. Long-Term Incentive Plan Stock Grants Restricted shares granted pursuant to the Company’s Long-Term Incentive Plan (“LTIP”) generally vest over 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 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 three months ended March 31, 2019 and 2018 were as follows (unaudited and in thousands): Three Months Ended March 31, 2019 2018 Amortization expense, including forfeitures $ 2,122 $ 2,000 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. These capitalized costs totaled $0.1 million during both the three months ended March 31, 2019 and 2018.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2019
Commitments and Contingencies
Commitments and Contingencies	11. Commitments and Contingencies Management Agreements Management agreements with the Company’s third-party hotel managers require the Company to pay between 1.75% and 3.0% 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 three months ended March 31, 2019 and 2018 were included in other property-level expenses on the Company’s consolidated statements of operations as follows (unaudited and in thousands): Three Months Ended March 31, 2019 2018 Basic management fees $ 7,151 $ 7,534 Incentive management fees 3,152 2,720 Total basic and incentive management fees $ 10,303 $ 10,254 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. Total license and franchise fees incurred by the Company during the three months ended March 31, 2019 and 2018 were included in franchise costs on the Company’s consolidated statements of operations as follows (unaudited and in thousands): Three Months Ended March 31, 2019 2018 Franchise assessments (1) $ 5,295 $ 5,908 Franchise royalties 1,544 1,945 Total franchise costs $ 6,839 $ 7,853 (1) Includes advertising, reservation and frequent guest club assessments. Renovation and Construction Commitments At March 31, 2019, 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 March 31, 2019 totaled $56.0 million. Concentration of Risk The concentration of the Company’s hotels in California, Florida, the greater Washington DC area, Hawaii, Illinois and Massachusetts 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 March 31, 2019, 16 of the 21 hotels were geographically concentrated as follows (unaudited): Trailing 12-Month Percentage of Total Number of Hotels Total Rooms Consolidated Revenue California 6 32 % 34 % Florida 2 9 % 10 % Greater Washington DC area 2 13 % 12 % Hawaii 1 5 % 10 % Illinois 3 11 % 8 % Massachusetts 2 14 % 15 % Other The Company has provided customary unsecured indemnities to certain lenders, including in particular, environmental indemnities. 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 March 31, 2019, 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 March 31, 2019. 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.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2019
Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements as of March 31, 2019 and December 31, 2018, and for the three months ended March 31, 2019 and 2018, 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 accompanying interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and in conformity with the rules and regulations of the Securities and Exchange Commission. In the Company’s opinion, the interim financial statements presented herein reflect all adjustments, consisting solely of normal and recurring adjustments, which are necessary to fairly present the interim financial statements. These financial statements should be read in conjunction with the financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018, filed with the Securities and Exchange Commission on February 14, 2019. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. 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. Certain prior year amounts in these financial statements have been reclassified to conform to the presentation for the three months ended March 31, 2019. The Company has evaluated subsequent events through the date of issuance of these financial statements.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates.
Earnings Per Share	Earnings Per Share The Company applies the two-class method when computing its earnings per share. Net income per share for each class of 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 (unaudited and in thousands, except per share data): Three Months Ended March 31, 2019 2018 Numerator: Net income $ 17,916 $ 38,455 Income from consolidated joint venture attributable to noncontrolling interest (1,599) (2,439) Preferred stock dividends (3,207) (3,207) Distributions paid on unvested restricted stock compensation (61) (59) Undistributed income allocated to unvested restricted stock compensation (9) (117) Numerator for basic and diluted income attributable to common stockholders $ 13,040 $ 32,633 Denominator: Weighted average basic and diluted common shares outstanding 227,219 224,282 Basic and diluted income attributable to common stockholders per common share $ 0.06 $ 0.15 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 three months ended March 31, 2019 and 2018, as their inclusion would have been anti-dilutive.
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 both March 31, 2019 and December 31, 2018, the noncontrolling interest reported in the Company’s consolidated financial statements consisted of a third-party’s 25.0% ownership interest in the Hilton San Diego Bayfront.
Investment in Hotel Properties	Investment 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 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. 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.
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.
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): March 31, December 31, 2019 2018 (unaudited) Trade receivables, net (1) $ 20,566 $ 18,982 Contract liabilities (2) $ 16,911 $ 16,711 (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 both other current liabilities and other liabilities on the accompanying consolidated balance sheets. Of the amount outstanding at December 31, 2018, approximately $12.9 million was recognized in revenue during the three months ended March 31, 2019.
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.
New Accounting Standards and Accounting Changes	New Accounting Standards and Accounting Changes In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-02, “ Leases (Topic 842) ” (“ASU No. 2016-02”), which requires companies to record a right-of-use asset and a lease liability on the balance sheet for all leases with a term greater than 12 months regardless of their classification. All entities will classify leases as either operating or finance to determine how to recognize lease-related revenue and expense. Classification will continue to affect amounts that lessees and lessors record on the balance sheet. The new standard requires the following: · Lessees: Leases are accounted for using a dual approach, classifying leases as either operating or financing based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification determines whether the lease expense is recognized on a straight-line basis over the term of the lease (for operating leases) or based on an effective interest method (for finance leases). A lessee is required to record a right-of-use asset and a lease liability on its balance sheet for all leases with a term of greater than 12 months regardless of their classification as operating or finance leases. · Lessors: Leases are accounted for using an approach that is substantially equivalent to existing guidance for operating, sales-type and financing leases, but aligned with the FASB’s revenue standard. Subsequent to the issuance of ASU No. 2016-02, the FASB issued several clarifications and updates, including Accounting Standards Update No. 2018-01, “ Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842 ” (“ASU No. 2018-01”) in January 2018, 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”) in July 2018, Accounting Standards Update No. 2018-20, “ Leases (Topic 842): Narrow-Scope Improvements for Lessors ” (“ASU No. 2018-20”) in December 2018 and Accounting Standards Update No. 2019-01, “ Leases (Topic 842): Codification Improvements ” (“ASU No. 2019-01”) in March 2019. The Company adopted ASU No. 2016-02 on January 1, 2019, along with its related clarifications and amendments, and made the following elections: · to not separate lease components from nonlease components by underlying asset. By making this election, the Company is required to account for the nonlease components together with the related lease components as a single lease component (ASU No. 2016-02); · to not reassess whether a land easement not previously accounted for as a lease would now be a lease (ASU No. 2018-01); · to not reassess whether an expired or existing contract meets the definition of a lease ( ASU No. 2018-11) ; · to not reassess the lease classification at the adoption date for existing leases ( ASU No. 2018-11) ; · to not reassess whether costs previously capitalized as initial direct costs would continue to be amortized (ASU No. 2018-11); · to apply the optional modified retrospective transition approach, allowing companies to initially apply the standard at the adoption date without revising comparable periods ( ASU No. 2018-11); and · to not evaluate whether sales taxes and other similar taxes imposed by a governmental authority on a specific lease revenue-producing transaction are the primary obligation of the lessor as owner of the underlying leased asset (ASU No. 2018-20). Lessee Perspective : Adoption of the new standard resulted in the Company recording net balance sheet adjustments for right-of-use (“ROU”) assets and related lease obligations totaling $45.7 million for its operating leases. The Company also reclassified an $18.4 million ground lease intangible asset, net of accumulated amortization, from investment in hotel properties, net to operating lease ROU assets, net, and reclassified its existing deferred rent liabilities related to its operating leases totaling $13.0 million from other liabilities to operating lease obligations. The adjustments related to operating leases affected the Company’s January 1, 2019 consolidated balance sheet as follows (in thousands): Balance Pre-Adoption Adjustments Balance Post-Adoption (unaudited) (unaudited) Operating lease right-of-use assets, net $ — $ 64,075 $ 64,075 Investment in hotel properties, net (intangible assets) $ 50,889 (18,398) $ 32,491 Total asset adjustments $ 45,677 Operating lease obligations, current and noncurrent $ — $ 58,663 $ 58,663 Other liabilities (deferred rent) $ 12,986 (12,986) $ — Total liability adjustments $ 45,677 Upon adoption of the new standard, the Company reclassified amounts related to its finance leases as follows (in thousands): Balance Pre-Adoption Adjustments Balance Post-Adoption (unaudited) (unaudited) Finance lease right-of-use assets, net $ — $ 55,727 $ 55,727 Investment in hotel properties, net (land) $ 611,993 (6,605) $ 605,388 Investment in hotel properties, net (buildings and improvements, net of accumulated depreciation) $ 2,167,680 (49,122) $ 2,118,558 Total asset adjustments $ — Finance lease obligations, current and noncurrent $ — $ 27,010 $ 27,010 Capital lease obligations, current and noncurrent $ 27,010 (27,010) $ — Total liability adjustments $ — The Company determines if a contract is a lease at inception. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Expense for these short-term leases is recognized on a straight-line basis over the lease term. For leases with an initial term greater than 12 months, the Company records a ROU asset and a corresponding lease obligation. ROU assets represent the Company’s right to use an underlying asset for the lease term, and lease obligations represent the Company’s obligation to make fixed lease payments as stipulated by the lease. Operating lease obligations are recognized at the lease commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate (“IBR”) based on information available at the commencement date in determining the present value of lease payments over the lease term. The IBR is the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. In order to estimate the Company’s IBR, the Company first looks to its own unsecured debt offerings, and adjusts the rate for both length of term and secured borrowing using available market data as well as consultations with leading national financial institutions that are active in the issuance of both secured and unsecured notes. Operating lease ROU assets are recognized at the lease commencement date, and include the amount of the initial operating lease obligation, any lease payments made at or before the commencement date, excluding any lease incentives received, and any initial direct costs incurred. For leases that have extension options that the Company can exercise at its discretion, management uses judgement to determine if it is reasonably certain that the Company will in fact exercise such option. If the extension option is reasonably certain to occur, the Company includes the extended term’s lease payments in the calculation of the respective lease liability. None of the Company’s leases contain any material residual value guarantees or material restrictive covenants. The Company reviews its right-of-use assets for indicators of impairment. 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. Lessor Perspective : For lease agreements in which the Company is the lessor, the Company analyzed the impact of the standard and determined that there was no material impact to the recognition, measurement, or presentation of these revenues. Upon adoption, the Company analyzed the lease and nonlease components, including real estate taxes and common area maintenance expenses, of its lease agreements and determined that the timing and pattern of transfer for both components are the same. In addition, the Company determined that the predominate component was the lease component and, as such, the leases will continue to qualify as operating leases and the Company will account for and present the lease component and the nonlease component as a single component. The Company will continue to collect nonlease amounts directly from its tenants, including real estate taxes and other expenses, and remit these amounts directly to third-parties. None of the Company’s tenants pay third-parties directly. The Company believes that all of its tenant receivables are probable of collection as of March 31, 2019. See Note 8 for additional lease disclosures. 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.

Organization and Description _2

Organization and Description of Business (Tables)	3 Months Ended
	Mar. 31, 2019
Organization and Description of Business
Schedule of number of hotels managed by each third-party manager	As of March 31, 2019, 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 March 31, 2019 21

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2019
Summary of Significant Accounting Policies
Schedule of computation of basic and diluted earnings per common share	The following table sets forth the computation of basic and diluted earnings per common share (unaudited and in thousands, except per share data): Three Months Ended March 31, 2019 2018 Numerator: Net income $ 17,916 $ 38,455 Income from consolidated joint venture attributable to noncontrolling interest (1,599) (2,439) Preferred stock dividends (3,207) (3,207) Distributions paid on unvested restricted stock compensation (61) (59) Undistributed income allocated to unvested restricted stock compensation (9) (117) Numerator for basic and diluted income attributable to common stockholders $ 13,040 $ 32,633 Denominator: Weighted average basic and diluted common shares outstanding 227,219 224,282 Basic and diluted income attributable to common stockholders per common share $ 0.06 $ 0.15
Schedule of contract assets and liabilities	Trade receivables and contract liabilities consisted of the following (in thousands): March 31, December 31, 2019 2018 (unaudited) Trade receivables, net (1) $ 20,566 $ 18,982 Contract liabilities (2) $ 16,911 $ 16,711 (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 both other current liabilities and other liabilities on the accompanying consolidated balance sheets. Of the amount outstanding at December 31, 2018, approximately $12.9 million was recognized in revenue during the three months ended March 31, 2019.
Schedule of financial statement adjustments due to adoption of ASU 2016-02	The adjustments related to operating leases affected the Company’s January 1, 2019 consolidated balance sheet as follows (in thousands): Balance Pre-Adoption Adjustments Balance Post-Adoption (unaudited) (unaudited) Operating lease right-of-use assets, net $ — $ 64,075 $ 64,075 Investment in hotel properties, net (intangible assets) $ 50,889 (18,398) $ 32,491 Total asset adjustments $ 45,677 Operating lease obligations, current and noncurrent $ — $ 58,663 $ 58,663 Other liabilities (deferred rent) $ 12,986 (12,986) $ — Total liability adjustments $ 45,677 Upon adoption of the new standard, the Company reclassified amounts related to its finance leases as follows (in thousands): Balance Pre-Adoption Adjustments Balance Post-Adoption (unaudited) (unaudited) Finance lease right-of-use assets, net $ — $ 55,727 $ 55,727 Investment in hotel properties, net (land) $ 611,993 (6,605) $ 605,388 Investment in hotel properties, net (buildings and improvements, net of accumulated depreciation) $ 2,167,680 (49,122) $ 2,118,558 Total asset adjustments $ — Finance lease obligations, current and noncurrent $ — $ 27,010 $ 27,010 Capital lease obligations, current and noncurrent $ 27,010 (27,010) $ — Total liability adjustments $ —

Investment in Hotel Properties

Investment in Hotel Properties (Tables)	3 Months Ended
	Mar. 31, 2019
Investment in Hotel Properties
Schedule of investment in hotel properties	Investment in hotel properties, net consisted of the following (in thousands): March 31, December 31, 2019 2018 (unaudited) Land $ 605,388 $ 611,993 Buildings and improvements 2,950,723 2,983,308 Furniture, fixtures and equipment 492,317 486,441 Intangible assets 33,161 56,021 Franchise fees 778 778 Construction in progress 54,366 60,744 Investment in hotel properties, gross 4,136,733 4,199,285 Accumulated depreciation and amortization (1,189,937) (1,168,287) Investment in hotel properties, net $ 2,946,796 $ 3,030,998

Fair Value Measurements and I_2

Fair Value Measurements and Interest Rate Derivatives (Tables)	3 Months Ended
	Mar. 31, 2019
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 March 31, 2019 and December 31, 2018 (in thousands): Fair Value Measurements at Reporting Date Total Level 1 Level 2 Level 3 March 31, 2019 (unaudited): Interest rate cap derivatives $ — $ — $ — $ — Interest rate swap derivatives 2,725 — 2,725 — Life insurance policy (1) 398 — 398 — Total assets measured at fair value at March 31, 2019 $ 3,123 $ — $ 3,123 $ — 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 $ — (1) Includes the split life insurance policy for a former Company associate. These amounts are included in other assets, net on the accompanying consolidated balance sheets, and will be used to reimburse the Company for payments made to the former associate from the related retirement benefit agreement, which is included in accrued payroll and employee benefits on the accompanying consolidated balance sheets.
Schedule of liabilities measured at fair value on a recurring and nonrecurring basis	The following table presents the Company’s liabilities measured at fair value on a recurring and nonrecurring basis at March 31, 2019 and December 31, 2018 (in thousands): Fair Value Measurements at Reporting Date Total Level 1 Level 2 Level 3 March 31, 2019 (unaudited): Retirement benefit agreement (1) $ 398 $ — $ 398 $ — Total liabilities measured at fair value at March 31, 2019 $ 398 $ — $ 398 $ — December 31, 2018: Retirement benefit agreement (1) $ 386 $ — $ 386 $ — Total liabilities measured at fair value at December 31, 2018 $ 386 $ — $ 386 $ — (1) Includes the retirement benefit agreement for a former Company associate. The agreement calls for the balance of the retirement benefit to be paid out to the former associate in ten annual installments, beginning in 2011. As such, the Company has paid the former associate a total of $1.6 million through March 31, 2019, which was reimbursed to the Company using funds from the related split life insurance policy noted above. These amounts are included in accrued payroll and employee benefits on the accompanying consolidated balance sheets.
Schedule of interest rate derivatives	The Company’s interest rate derivatives, which are not designated as effective cash flow hedges, consisted of the following at March 31, 2019 (unaudited) and December 31, 2018 (in thousands): Estimated Fair Value of Assets (1) Strike / Capped Effective Maturity Notional March 31, December 31, Hedged Debt Type Rate Index Date Date Amount 2019 2018 Hilton San Diego Bayfront Cap 4.250 % 1-Month LIBOR May 1, 2017 May 1, 2019 $ 107,515 $ — $ — Hilton San Diego Bayfront Cap 6.000 % 1-Month LIBOR November 10, 2017 December 9, 2020 $ 220,000 — — $85.0 million term loan Swap 1.591 % 1-Month LIBOR October 29, 2015 September 2, 2022 $ 85,000 1,616 2,521 $100.0 million term loan Swap 1.853 % 1-Month LIBOR January 29, 2016 January 31, 2023 $ 100,000 1,109 2,268 $ 2,725 $ 4,789 (1) The fair values of the cap and swap agreements are included in other assets, net on the accompanying consolidated balance sheets as of both March 31, 2019 and December 31, 2018.
Schedule of changes in fair value of interest rate derivatives	Noncash changes in the fair values of the Company’s interest rate derivatives resulted in increases (decreases) to interest expense for the three months ended March 31, 2019 and 2018 as follows (unaudited and in thousands): Three Months Ended March 31, 2019 2018 Noncash interest on derivatives $ 2,064 $ (3,187)
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 March 31, 2019 (unaudited) and December 31, 2018 were as follows (in thousands): March 31, 2019 December 31, 2018 Carrying Amount (1) Fair Value Carrying Amount (1) Fair Value Debt $ 980,996 $ 972,535 $ 982,828 $ 971,082 (1) The principal balance of debt is presented before any unamortized deferred financing costs.

Other Assets (Tables)

Other Assets (Tables)	3 Months Ended
	Mar. 31, 2019
Other Assets
Schedule of other assets	Other assets, net consisted of the following (in thousands): March 31, December 31, 2019 2018 (unaudited) Property and equipment, net $ 8,183 $ 8,426 Goodwill 990 990 Deferred rent on straight-lined third-party tenant leases 3,117 3,177 Deferred income tax asset, net 11,387 8,407 Interest rate derivatives 2,725 4,789 Other receivables 2,331 3,209 Other 807 819 Total other assets, net $ 29,540 $ 29,817

Notes Payable (Tables)

Notes Payable (Tables)	3 Months Ended
	Mar. 31, 2019
Notes Payable
Schedule of notes payable	Notes payable consisted of the following (in thousands): March 31, December 31, 2019 2018 (unaudited) Notes payable requiring payments of interest and principal, with fixed rates ranging from 4.12% to 5.95%; maturing at dates ranging from November 2020 through January 2025. The notes are collateralized by first deeds of trust on four hotel properties at both March 31, 2019 and December 31, 2018. $ 335,996 $ 337,828 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, 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%. 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, 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%. 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 $ 980,996 $ 982,828 Current portion of notes payable $ 8,030 $ 7,804 Less: current portion of deferred financing costs (1,966) (1,966) Carrying value of current portion of notes payable $ 6,064 $ 5,838 Notes payable, less current portion $ 972,966 $ 975,024 Less: long-term portion of deferred financing costs (3,309) (3,799) Carrying value of notes payable, less current portion $ 969,657 $ 971,225
Schedule of interest expense	Total interest incurred and expensed on the notes payable was as follows (unaudited and in thousands): Three Months Ended March 31, 2019 2018 Interest expense on debt and finance lease obligations $ 11,509 $ 11,266 Noncash interest on derivatives and finance lease obligations, net 2,119 (3,137) Amortization of deferred financing costs 698 747 Total interest expense $ 14,326 $ 8,876

Other Current Liabilities and_2

Other Current Liabilities and Other Liabilities (Tables)	3 Months Ended
	Mar. 31, 2019
Other Current Liabilities and Other Liabilities
Schedule of other current liabilities	Other Current Liabilities Other current liabilities consisted of the following (in thousands): March 31, December 31, 2019 2018 (unaudited) Property, sales and use taxes payable $ 13,959 $ 15,684 Income tax payable 136 125 Accrued interest 4,367 7,306 Advance deposits 16,551 16,711 Management fees payable 1,163 1,142 Other 3,736 3,994 Total other current liabilities $ 39,912 $ 44,962
Schedule of other liabilities	Other Liabilities Other liabilities consisted of the following (in thousands): March 31, December 31, 2019 2018 (unaudited) Deferred revenue $ 5,305 $ 5,017 Deferred rent — 12,986 Deferred property taxes payable 9,541 9,284 Deferred income tax liability — 304 Other 3,145 3,112 Total other liabilities $ 17,991 $ 30,703

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2019
Leases
Schedule of supplemental balance sheet information related to leases	Leases were included on the Company’s consolidated balance sheet as follows (in thousands): March 31, 2019 (unaudited) Finance Leases: Right-of-use assets, net (land) $ 6,605 Right-of-use assets, net (buildings and improvements) 58,799 Accumulated amortization (10,045) Right-of-use assets, net $ 55,359 Accounts payable and accrued expenses $ 1 Lease obligations, less current portion 27,064 Total lease obligations $ 27,065 Operating Leases: Right-of-use assets, net $ 63,235 Accounts payable and accrued expenses $ 4,528 Lease obligations, less current portion 53,276 Total lease obligations $ 57,804 Weighted Average Remaining Lease Term: Finance leases 53.2 years Operating leases 24.5 years Weighted Average Discount Rate: Finance leases 9.5 % Operating leases 5.3 %
Lease costs	The components of lease expense were as follows (in thousands): Three Months Ended March 31, 2019 (unaudited) Finance lease cost: Amortization of right-of-use assets $ 368 Interest on lease obligations 644 Total finance lease cost $ 1,012 Operating lease cost (1) $ 3,149 (1) Several of the Company’s hotels pay percentage rent, which is calculated on operating revenues above certain thresholds. During the three months ended March 31, 2019, the Company recorded $1.4 million in percentage rent related to its operating leases.
Schedule of supplemental cash flow information related to leases	Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended March 31, 2019 (unaudited) Cash paid for amounts included in the measurement of lease obligations: Operating cash flows from operating leases $ 1,632 Operating cash flows from finance leases $ — Finance cash flows from finance leases $ — Right-of-use assets obtained in exchange for lease obligations upon adoption of ASU No. 2016-02: Operating leases $ 45,677 Finance leases $ —
Summary of Future payments on leases, Operating lease	Future maturities of the Company’s operating and finance lease obligations at March 31, 2019 were as follows (in thousands): Operating Leases Finance Leases (unaudited) (unaudited) 2019 $ 7,480 $ 2,357 2020 7,532 2,357 2021 7,583 2,413 2022 7,635 2,453 2023 7,689 2,453 Thereafter 79,789 135,607 Total lease payments 117,708 147,640 Less: interest (1) (59,904) (120,575) Present value of lease obligations $ 57,804 $ 27,065 (1) Calculated using the appropriate discount rate for each lease.
Summary of Future payments on leases, Finance lease	Operating Leases Finance Leases (unaudited) (unaudited) 2019 $ 7,480 $ 2,357 2020 7,532 2,357 2021 7,583 2,413 2022 7,635 2,453 2023 7,689 2,453 Thereafter 79,789 135,607 Total lease payments 117,708 147,640 Less: interest (1) (59,904) (120,575) Present value of lease obligations $ 57,804 $ 27,065 (1) Calculated using the appropriate discount rate for each lease.

Long-Term Incentive Plan (Table

Long-Term Incentive Plan (Tables)	3 Months Ended
	Mar. 31, 2019
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 three months ended March 31, 2019 and 2018 were as follows (unaudited and in thousands): Three Months Ended March 31, 2019 2018 Amortization expense, including forfeitures $ 2,122 $ 2,000

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2019
Commitments and Contingencies
Schedule of basic and incentive management fees	Total basic management fees, net of key money incentives received from third-party hotel managers, along with incentive management fees incurred by the Company during the three months ended March 31, 2019 and 2018 were included in other property-level expenses on the Company’s consolidated statements of operations as follows (unaudited and in thousands): Three Months Ended March 31, 2019 2018 Basic management fees $ 7,151 $ 7,534 Incentive management fees 3,152 2,720 Total basic and incentive management fees $ 10,303 $ 10,254
Schedule of license and franchise costs	Total license and franchise fees incurred by the Company during the three months ended March 31, 2019 and 2018 were included in franchise costs on the Company’s consolidated statements of operations as follows (unaudited and in thousands): Three Months Ended March 31, 2019 2018 Franchise assessments (1) $ 5,295 $ 5,908 Franchise royalties 1,544 1,945 Total franchise costs $ 6,839 $ 7,853 (1) Includes advertising, reservation and frequent guest club assessments.
Schedule of hotel geographic concentration of risk	As of March 31, 2019, 16 of the 21 hotels were geographically concentrated as follows (unaudited): Trailing 12-Month Percentage of Total Number of Hotels Total Rooms Consolidated Revenue California 6 32 % 34 % Florida 2 9 % 10 % Greater Washington DC area 2 13 % 12 % Hawaii 1 5 % 10 % Illinois 3 11 % 8 % Massachusetts 2 14 % 15 %

Organization and Description _3

Organization and Description of Business (Details)	3 Months Ended
	Mar. 31, 2019property
Hotel owned by the Company
Organization and Description of Business
Number of hotels owned by the Company	21
Hotel owned by the Company | Marriott
Organization and Description of Business
Number of hotels owned by the Company	8
Hotel owned by the Company | Interstate Hotels & Resorts, Inc
Organization and Description of Business
Number of hotels owned by the Company	3
Hotel owned by the Company | Highgate Hotels L.P. and an affiliate
Organization and Description of Business
Number of hotels owned by the Company	3
Hotel owned by the Company | Crestline Hotels & Resorts
Organization and Description of Business
Number of hotels owned by the Company	2
Hotel owned by the Company | Hilton Worldwide
Organization and Description of Business
Number of hotels owned by the Company	2
Hotel owned by the Company | Davidson Hotels & Resorts
Organization and Description of Business
Number of hotels owned by the Company	1
Hotel owned by the Company | Hyatt Corporation
Organization and Description of Business
Number of hotels owned by the Company	1
Hotel owned by the Company | Singh Hospitality, LLC
Organization and Description of Business
Number of hotels owned by the Company	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 - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Numerator:
Net income	$ 17,916	$ 38,455
Income from consolidated joint venture attributable to noncontrolling interest	(1,599)	(2,439)
Preferred stock dividends	(3,207)	(3,207)
Distributions paid on unvested restricted stock compensation	(61)	(59)
Undistributed income allocated to unvested restricted stock compensation	(9)	(117)
Numerator for basic and diluted income attributable to common stockholders	$ 13,040	$ 32,633
Denominator:
Weighted average basic and diluted common shares outstanding (in shares)	227,219	224,282
Basic and diluted income attributable to common stockholders per common share (in dollars per share)	$ 0.06	$ 0.15

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Revenue Recognition
Trade receivables, net	$ 20,566	$ 18,982
Contract liabilities	16,911	$ 16,711
Deferred revenue recognized	$ 12,900
Hilton San Diego Bayfront
Stockholders' Equity Attributable to Noncontrolling Interest
Noncontrolling interest percentage in Hilton San Diego Bayfront	25.00%	25.00%
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
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

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Adoption of New Lease Standard (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Operating Leases
Operating lease right-of-use assets, net	$ 63,235	$ 64,075
Intangible assets	33,161	32,491	$ 56,021
Assets	3,890,657		3,972,833
Operating lease obligations, current and noncurrent	57,804	58,663
Deferred rent			12,986
Liabilities	1,180,370		1,261,662
Finance Leases
Finance lease right-of-use assets, net	55,359	55,727
Land	605,388	605,388	611,993
Building and improvements, net		2,118,558
Finance lease obligations, current and noncurrent	27,065	27,010
Buildings and improvements
Finance Leases
Finance lease right-of-use assets, net	58,799
Land [Member]
Finance Leases
Finance lease right-of-use assets, net	$ 6,605
Balance Pre-Adoption
Operating Leases
Intangible assets			50,889
Deferred rent			12,986
Finance Leases
Land			611,993
Building and improvements, net			2,167,680
Capital lease obligations, current and noncurrent			$ 27,010
New Lease Standard Adjustments
Operating Leases
Operating lease right-of-use assets, net		64,075
Intangible assets		(18,398)
Assets		45,677
Operating lease obligations, current and noncurrent		58,663
Deferred rent		(12,986)
Liabilities		45,677
Finance Leases
Finance lease right-of-use assets, net		55,727
Land		(6,605)
Building and improvements, net		(49,122)
Finance lease obligations, current and noncurrent		27,010
Capital lease obligations, current and noncurrent		$ (27,010)

Investment in Hotel Propertie_2

Investment in Hotel Properties (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Investment in Hotel Properties
Land	$ 605,388	$ 605,388	$ 611,993
Buildings and improvements	2,950,723		2,983,308
Furniture, fixtures and equipment	492,317		486,441
Intangible assets	33,161	$ 32,491	56,021
Franchise fees	778		778
Construction in progress	54,366		60,744
Investment in hotel properties, gross	4,136,733		4,199,285
Accumulated depreciation and amortization	(1,189,937)		(1,168,287)
Investment in hotel properties, net	$ 2,946,796		$ 3,030,998

Fair Value Measurements and I_3

Fair Value Measurements and Interest Rate Derivatives - Fair Value Measurements (Details) $ in Thousands	Mar. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2011item
Assets:
Interest rate derivatives	$ 2,725	$ 4,789
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	398	386
Total assets	3,123	5,175
Liabilities:
Retirement benefit agreement	398	386
Total liabilities	398	386
Level 2 | Interest Rate Swap
Assets:
Interest rate derivatives	2,725	4,789
Total at the end of the period
Assets:
Life insurance policy	398	386
Total assets	3,123	5,175
Liabilities:
Retirement benefit agreement	398	386
Total liabilities	398	386
Total at the end of the period | Interest Rate Swap
Assets:
Interest rate derivatives	$ 2,725	$ 4,789

Fair Value Measurements and I_4

Fair Value Measurements and Interest Rate Derivatives - Interest Rate Derivatives (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Interest Rate Derivatives
Fair value of interest rate derivatives	$ 2,725		$ 4,789
Fair values of derivative assets	2,725		$ 4,789
Noncash interest on derivatives	$ 2,064	$ (3,187)
Hilton San Diego Bayfront mortgage payable
Interest Rate Derivatives
Interest rate, description of reference rate	one-month LIBOR		one-month LIBOR
Interest Rate Cap | Not designated as hedging instrument | Hilton San Diego Bayfront mortgage payable
Interest Rate Derivatives
Strike rate under interest rate cap agreement	4.25%		4.25%
Interest rate, description of reference rate	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	$ 107,515
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
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	$ 1,616		$ 2,521
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	$ 1,109		$ 2,268

Fair Value Measurements and I_5

Fair Value Measurements and Interest Rate Derivatives - Fair Value of Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Percentage of Debt Bearing Fixed Interest Rates	77.60%	77.60%
Total notes payable	$ 980,996	$ 982,828
Level 3
Fair value of debt	$ 972,535	$ 971,082

Other Assets (Details)

Other Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Other assets, net
Property and equipment, net	$ 8,183	$ 8,426
Goodwill	990	990
Deferred rent on straight-lined third-party tenant leases	3,117	3,177
Deferred income tax asset, net	11,387	8,407
Interest rate derivatives	2,725	4,789
Other receivables	2,331	3,209
Other	807	819
Total other assets, net	$ 29,540	$ 29,817

Notes Payable (Details)

Notes Payable (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019USD ($)property	Dec. 31, 2018USD ($)property
Notes payable
Total notes payable	$ 980,996	$ 982,828
Current portion of notes payable	8,030	7,804
Less: current portion of deferred financing costs	(1,966)	(1,966)
Current portion of notes payable, net	6,064	5,838
Notes payable, less current portion	972,966	975,024
Less: long-term portion of deferred financing costs	(3,309)	(3,799)
Carrying value of notes payable, less current portion	$ 969,657	$ 971,225
Notes payable maturing in various years
Notes payable
Number of hotels provided as collateral | property	4	4
Total notes payable	$ 335,996	$ 337,828
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
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
Term loan total interest rate, including effect of swap agreement	2.941%	2.941%
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%	1.35%
$85.0 million term loan | Maximum
Notes payable
Interest rate added to base rate (as a percent)	2.20%	2.20%
$100.0 million term loan
Notes payable
Debt maturity date	Jan. 31, 2023	Jan. 31, 2023
Term loan total interest rate, including effect of swap agreement	3.203%	3.203%
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%	1.35%
$100.0 million term loan | Maximum
Notes payable
Interest rate added to base rate (as a percent)	2.20%	2.20%
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 Cap | Hilton San Diego Bayfront mortgage payable
Notes payable
Interest rate, description of reference rate	one-month LIBOR	one-month LIBOR
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 - Interest Expens

Notes Payable - Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Interest Expense
Interest expense on debt and finance lease obligations	$ 11,509	$ 11,266
Noncash interest on derivatives and finance lease obligations, net	2,119	(3,137)
Amortization of deferred financing costs	698	747
Total interest expense	$ 14,326	$ 8,876

Other Current Liabilities and_3

Other Current Liabilities and Other Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Other Current Liabilities
Property, sales and use taxes payable	$ 13,959	$ 15,684
Income tax payable	136	125
Accrued interest	4,367	7,306
Advance deposits	16,551	16,711
Management fees payable	1,163	1,142
Other	3,736	3,994
Total other current liabilities	39,912	44,962
Other Liabilities
Deferred revenue	5,305	5,017
Deferred rent		12,986
Deferred property taxes payable	9,541	9,284
Deferred income tax liability		304
Other	3,145	3,112
Total other liabilities	$ 17,991	$ 30,703

Leases - Supplemental Balance S

Leases - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Finance Leases
Accumulated depreciation	$ (10,045)
Accounts payable and accrued expenses	1
Finance lease right-of-use assets, net	55,359	$ 55,727
Finance lease obligations, less current portion	27,064		$ 27,009
Total finance lease obligations	$ 27,065	27,010
Weighted average remaining finance lease term	53 years 2 months 12 days
Weighted average finance lease discount rate	9.50%
Operating Leases
Operating lease right-of-use assets, net	$ 63,235	64,075
Accounts payable and accrued expenses	4,528
Operating lease obligations, less current portion	53,276
Total operating lease obligations	$ 57,804	$ 58,663
Weighted average remaining operating lease term	24 years 3 months 18 days
Weighted average operating lease discount rate	5.30%
Land [Member]
Finance Leases
Finance lease right-of-use assets, net	$ 6,605
Buildings and improvements
Finance Leases
Finance lease right-of-use assets, net	$ 58,799

Leases - Components of Lease Co

Leases - Components of Lease Cost (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Finance lease cost
Amortization of right-of-use assets	$ 368
Interest on lease obligations	644
Finance lease cost	1,012
Operating lease cost	3,149
Percentage rent	$ 1,400

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flow Information Related to Leases (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Cash payments on lease obligations
Operating cash flows from operating leases	$ 1,632
Right-of-use assets obtained in exchange for lease obligations
Operating leases	$ 45,677

Leases - Future Maturities of L

Leases - Future Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jan. 01, 2019
Operating Leases
2019	$ 7,480
2020	7,532
2021	7,583
2022	7,635
2023	7,689
Thereafter	79,789
Total lease payments	117,708
Less: interest	(59,904)
Present value of lease obligations	57,804	$ 58,663
Finance Leases
2019	2,357
2020	2,357
2021	2,413
2022	2,453
2023	2,453
Thereafter	135,607
Total lease payments	147,640
Less: interest	(120,575)
Present value of lease obligations	$ 27,065	$ 27,010

Leases - Lessor Information (De

Leases - Lessor Information (Details) - Other operating $ in Millions	3 Months Ended
	Mar. 31, 2019USD ($)
Lease-related revenue
Lease-related revenue	$ 2.6
Operating Lease, Income, Comprehensive Income [Extensible List]	Revenues

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended		3 Months Ended	24 Months Ended
	May 31, 2016	Mar. 31, 2016	Mar. 31, 2019	Dec. 31, 2018	Feb. 28, 2017
Stockholders' equity
ATM Program, remaining amount authorized for issuance			$ 175.5
Maximum | Share repurchase program
Stockholders' equity
Repurchase Program, maximum amount authorized for repurchase					$ 300
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
Payment of preferred stock offering costs		$ 4
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
Payment of preferred stock offering costs	$ 2.6
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				$ 124.5
Payments of stock issuance costs				$ 2.3
ATM Program, number of shares sold or issued (in shares)				7,467,709
Common Stock | Maximum | At The Market
Stockholders' equity
ATM Program, maximum amount authorized for issuance					$ 300

Long-Term Incentive Plan (Detai

Long-Term Incentive Plan (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Compensation expense and forfeitures
Capitalized compensation cost related to shares issued to design and construction employees	$ 99	$ 113
Restricted Shares
Compensation expense and forfeitures
Amortization Expense, including forfeitures	2,122	2,000
Capitalized compensation cost related to shares issued to design and construction employees	$ 100	$ 100
Restricted Shares | Minimum
Long-Term Incentive Plan
Vesting period	3 years

Commitments and Contingencies -

Commitments and Contingencies - Management Fees, Franchise Costs and Renovation Commitments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Basic and incentive management fees incurred
Other property-level expenses	$ 32,840	$ 33,907
License and Franchise Agreements
Franchise assessments	5,295	5,908
Franchise royalties	1,544	1,945
Franchise costs	6,839	7,853
Basic management fees
Basic and incentive management fees incurred
Other property-level expenses	7,151	7,534
Incentive management fees
Basic and incentive management fees incurred
Other property-level expenses	3,152	2,720
Total basic and incentive management fees
Basic and incentive management fees incurred
Other property-level expenses	$ 10,303	$ 10,254
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	$ 56,000

Commitments and Contingencies_2

Commitments and Contingencies - Other Commitments and Concentration of Risk (Details) $ in Thousands	Mar. 31, 2019USD ($)property	Mar. 31, 2019USD ($)property	Mar. 31, 2019USD ($)property
Other
Term of unsecured environmental indemnities		0 years
Damage limitation of unsecured environmental indemnities | $		$ 0
Percentage of total rooms | California
Concentration of Risk
Concentration risk (as a percent)	32.00%
Percentage of total rooms | Florida
Concentration of Risk
Concentration risk (as a percent)	9.00%
Percentage of total rooms | Greater Washington DC area
Concentration of Risk
Concentration risk (as a percent)	13.00%
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 revenue generated by hotels | California
Concentration of Risk
Concentration risk (as a percent)			34.00%
Percentage of total revenue generated by hotels | Florida
Concentration of Risk
Concentration risk (as a percent)			10.00%
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 | 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)			15.00%
Workers' compensation insurance programs
Other
Outstanding irrevocable letters of credit | $	$ 400	400	$ 400
Draws on letters of credit | $		$ 0
Hotel owned by the Company
Concentration of Risk
Number of hotels which are held for investment	21	21	21
Hotel owned by the Company | California
Concentration of Risk
Number of hotels which are held for investment	6	6	6
Hotel owned by the Company | Florida
Concentration of Risk
Number of hotels which are held for investment	2	2	2
Hotel owned by the Company | Greater Washington DC area
Concentration of Risk
Number of hotels which are held for investment	2	2	2
Hotel owned by the Company | Hawaii
Concentration of Risk
Number of hotels which are held for investment	1	1	1
Hotel owned by the Company | Illinois
Concentration of Risk
Number of hotels which are held for investment	3	3	3
Hotel owned by the Company | Massachusetts
Concentration of Risk
Number of hotels which are held for investment	2	2	2