Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 06, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | DiamondRock Hospitality Co | |
Entity Central Index Key | 1,298,946 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 200,741,777 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Property and equipment, net | $ 2,885,190 | $ 2,764,393 |
Restricted cash | 55,656 | 74,730 |
Due from hotel managers | 102,222 | 79,827 |
Favorable lease assets, net | 24,057 | 34,274 |
Prepaid and other assets | 53,671 | 52,739 |
Deferred financing costs, net | 7,574 | 8,023 |
Cash and cash equivalents | 61,977 | 144,365 |
Total assets | 3,190,347 | 3,158,351 |
Liabilities: | ||
Mortgage debt | 1,031,198 | 1,038,330 |
Senior unsecured credit facility | 25,000 | 0 |
Total debt | 1,056,198 | 1,038,330 |
Deferred income related to key money, net | 20,722 | 21,561 |
Unfavorable contract liabilities, net | 75,135 | 76,220 |
Due to hotel managers | 68,399 | 59,169 |
Dividends declared and unpaid | 25,540 | 20,922 |
Accounts payable and accrued expenses | 121,600 | 113,162 |
Total liabilities | 1,367,594 | 1,329,364 |
Stockholders’ Equity: | ||
Preferred stock, $0.01 par value; 10,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $0.01 par value; 400,000,000 shares authorized; 200,741,777 and 199,964,041 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively | 2,007 | 2,000 |
Additional paid-in capital | 2,055,467 | 2,045,755 |
Accumulated deficit | (234,721) | (218,768) |
Total stockholders’ equity | 1,822,753 | 1,828,987 |
Total liabilities and stockholders’ equity | $ 3,190,347 | $ 3,158,351 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Stockholders' Equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 200,741,777 | 199,964,041 |
Common stock, shares outstanding | 200,741,777 | 199,964,041 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues: | ||||
Rooms | $ 178,529 | $ 171,047 | $ 504,729 | $ 465,871 |
Food and beverage | 47,256 | 45,504 | 155,662 | 146,297 |
Other | 12,717 | 12,666 | 36,801 | 37,067 |
Total revenues | 238,502 | 229,217 | 697,192 | 649,235 |
Operating Expenses: | ||||
Rooms | 42,415 | 42,534 | 122,872 | 121,783 |
Food and beverage | 32,143 | 32,662 | 103,044 | 101,855 |
Management fees | 7,562 | 8,330 | 22,665 | 22,083 |
Other hotel expenses | 83,358 | 75,180 | 237,410 | 220,335 |
Depreciation and amortization | 25,107 | 25,327 | 75,018 | 75,576 |
Impairment losses | 0 | 0 | 10,461 | 0 |
Hotel acquisition costs | 453 | 1,198 | 945 | 1,279 |
Corporate expenses | 6,048 | 6,368 | 17,790 | 15,878 |
Gain on insurance proceeds | 0 | (554) | 0 | (1,825) |
Gain on litigation settlement, net | 0 | 0 | 0 | (10,999) |
Total operating expenses, net | 197,086 | 191,045 | 590,205 | 545,965 |
Operating profit | 41,416 | 38,172 | 106,987 | 103,270 |
Interest income | (35) | (156) | (185) | (2,766) |
Interest expense | 12,907 | 14,691 | 38,963 | 43,816 |
Loss (Gain) on sale of hotel property | 0 | 40 | 0 | (1,251) |
Gain on hotel property acquisition | 0 | (23,894) | 0 | (23,894) |
Gain on prepayment of note receivable | 0 | 0 | 0 | (13,550) |
Other income, net | (91) | (50) | (295) | (50) |
Total other expenses (income), net | 12,781 | (9,369) | 38,483 | 2,305 |
Income before income taxes | 28,635 | 47,541 | 68,504 | 100,965 |
Income tax expense | (4,171) | (3,733) | (8,576) | (1,203) |
Net income | $ 24,464 | $ 43,808 | $ 59,928 | $ 99,762 |
Earnings per share: | ||||
Basic earnings per share (in dollars per share) | $ 0.12 | $ 0.22 | $ 0.30 | $ 0.51 |
Diluted earnings per share (in dollars per share) | $ 0.12 | $ 0.22 | $ 0.30 | $ 0.51 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 59,928 | $ 99,762 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 75,018 | 75,576 |
Corporate asset depreciation as corporate expenses | 63 | 79 |
Gain on sale of hotel property | 0 | (1,251) |
Gain on prepayment of note receivable | 0 | (13,550) |
Loss on early extinguishment of debt | 0 | 61 |
Gain on hotel property acquisition | 0 | (23,894) |
Non-cash ground rent | 4,454 | 4,880 |
Non-cash financing costs, debt premium and interest rate cap as interest | 1,715 | 2,085 |
Amortization of note receivable discount as interest income | 0 | (1,075) |
Impairment losses | 10,461 | 0 |
Amortization of favorable and unfavorable contracts, net | (1,134) | (1,058) |
Amortization of deferred income related to key money | (839) | (818) |
Stock-based compensation | 4,403 | 4,105 |
Changes in assets and liabilities: | ||
Prepaid expenses and other assets | (4,445) | 687 |
Restricted cash | 13,338 | (13,003) |
Due to/from hotel managers | (12,441) | (16,245) |
Accounts payable and accrued expenses | 7,300 | (702) |
Net cash provided by operating activities | 157,821 | 115,639 |
Cash flows from investing activities: | ||
Hotel capital expenditures | (46,141) | (56,091) |
Hotel acquisitions | (150,400) | (148,376) |
Net proceeds from sale of hotel property | 0 | 23,610 |
Note receivable principal repayments | 0 | 64,500 |
Change in restricted cash | 5,737 | 3,701 |
Net cash used in investing activities | (190,804) | (112,656) |
Cash flows from financing activities: | ||
Scheduled mortgage debt principal payments | (10,075) | (10,966) |
Proceeds from sale of common stock, net | 7,796 | 0 |
Proceeds from mortgage debt | 150,000 | 86,000 |
Repayments of mortgage debt | (146,876) | (41,315) |
Draws on senior unsecured credit facility | 135,000 | 41,320 |
Repayments of senior unsecured credit facility | (110,000) | (41,320) |
Purchase of interest rate cap | (325) | 0 |
Payment of financing costs | (1,182) | (3,330) |
Payment of cash dividends | (71,008) | (56,989) |
Repurchase of common stock | (2,735) | (1,898) |
Net cash used in financing activities | (49,405) | (28,498) |
Net decrease in cash and cash equivalents | (82,388) | (25,515) |
Cash and cash equivalents, beginning of period | 144,365 | 144,584 |
Cash and cash equivalents, end of period | 61,977 | 119,069 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid for interest | 36,326 | 41,953 |
Cash paid for income taxes | 798 | 266 |
Capitalized interest | 0 | 914 |
Non-cash Financing Activities: | ||
Unpaid dividends | $ 25,540 | $ 20,452 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization DiamondRock Hospitality Company (the “Company” or “we”) is a lodging-focused real estate company that owns a portfolio of premium hotels and resorts. Our hotels are concentrated in key gateway cities and in destination resort locations and the majority of our hotels are operated under a brand owned by one of the leading global lodging brand companies (Marriott International, Inc. (“Marriott”), Starwood Hotels & Resorts Worldwide, Inc. (“Starwood”) or Hilton Worldwide (“Hilton”)). We are an owner, as opposed to an operator, of the hotels in our portfolio. As an owner, we receive all of the operating profits or losses generated by our hotels after we pay fees to the hotel managers, which are based on the revenues and profitability of the hotels. As of September 30, 2015 , we owned 29 hotels with 10,928 guest rooms, located in the following markets: Atlanta, Georgia; Boston, Massachusetts ( 2 ); Burlington, Vermont; Charleston, South Carolina; Chicago, Illinois ( 2 ); Denver, Colorado ( 2 ); Fort Lauderdale, FL; Fort Worth, Texas; Huntington Beach, California; Key West, Florida ( 2 ); Minneapolis, Minnesota; New York, New York ( 5 ); Orlando, Florida; Salt Lake City, Utah; San Diego, California; San Francisco, California; Sonoma, California; Washington D.C. ( 2 ); St. Thomas, U.S. Virgin Islands; and Vail, Colorado. We conduct our business through a traditional umbrella partnership real estate investment trust, or UPREIT, in which our hotel properties are owned by our operating partnership, DiamondRock Hospitality Limited Partnership, or subsidiaries of our operating partnership. The Company is the sole general partner of our operating partnership and currently owns, either directly or indirectly, all of the limited partnership units of our operating partnership. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, in the accompanying unaudited condensed consolidated financial statements. We believe the disclosures made are adequate to prevent the information presented from being misleading. However, the unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2014 , included in our Annual Report on Form 10-K filed on February 27, 2015 . In our opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments necessary to present fairly our financial position as of September 30, 2015 , the results of our operations for the three and nine months ended September 30, 2015 and 2014 and cash flows for the nine months ended September 30, 2015 and 2014 . Interim results are not necessarily indicative of full-year performance because of the impact of seasonal and short-term variations. Our financial statements include all of the accounts of the Company and its subsidiaries in accordance with U.S. GAAP. All intercompany accounts and transactions have been eliminated in consolidation. If the Company determines that it has an interest in a variable interest entity within the meaning of the FASB ASC 810, Consolidation , the Company will consolidate the entity when it is determined to be the primary beneficiary of the entity. Property and Equipment Investments in hotel properties, land, land improvements, building and furniture, fixtures and equipment 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 is computed using the straight-line method over the estimated useful lives of the assets, generally 15 to 40 years for buildings, land improvements, and building improvements and 1 to 10 years for furniture, fixtures and equipment. Leasehold improvements are amortized over the shorter of the lease term or the useful lives of the related assets. We review our investments in hotel properties for impairment whenever events or changes in circumstances indicate that the carrying value of the hotel properties may not be recoverable. Events or circumstances that may cause a review include, but are not limited to, adverse changes in the demand for lodging at the properties due to declining national or local economic conditions and/or new hotel construction in markets where the hotels are located. When such conditions exist, management performs an analysis to determine if the estimated undiscounted future cash flows from operations and the proceeds from the ultimate disposition of a hotel, less costs to sell, exceed its carrying value. If the estimated undiscounted future cash flows are less than the carrying amount of the asset, an adjustment to reduce the carrying amount to the related hotel’s estimated fair market value is recorded and an impairment loss is recognized. We have not recognized any impairment loss for our investment in hotel properties during any of the periods presented. We will classify a hotel as held for sale in the period that we have made the decision to dispose of the hotel, a binding agreement to purchase the property has been signed under which the buyer has committed a significant amount of nonrefundable cash and no significant financing or other contingencies exist which could cause the transaction to not be completed in a timely manner. If these criteria are met, we will record an impairment loss if the fair value less costs to sell is lower than the carrying amount of the hotel and related assets and will cease recording depreciation expense. We will classify the assets and related liabilities as held for sale on the balance sheet. We have not classified any of our hotels as held for sale during any of the periods presented. Revenue Recognition Revenues from operations of the hotels are recognized when the services are provided. Revenues consist of room sales, food and beverage sales, and other hotel department revenues, such as telephone, parking, gift shop sales and resort fees. Earnings Per Share Basic earnings per share is calculated by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is calculated by dividing net income by the weighted-average number of common shares outstanding during the period plus other potentially dilutive securities such as equity awards or shares issuable in the event of conversion of operating partnership units. No adjustment is made for shares that are anti-dilutive during a period. Stock-based Compensation We account for stock-based employee compensation using the fair value based method of accounting. We record the cost of stock-based awards based on the grant-date fair value of the award. That cost is recognized over the period during which an employee is required to provide service in exchange for the award. No compensation cost is recognized for equity instruments for which employees do not render the requisite service. Income Taxes We account for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rates is recognized in earnings during the period in which the new rate is enacted. We have elected to be treated as a real estate investment trust (“REIT”) under the provisions of the Internal Revenue Code of 1986, as amended (the "Code"), which requires that we distribute at least 90% of our taxable income annually to our stockholders and comply with certain other requirements. In addition to paying federal and state taxes on any retained income, we may be subject to taxes on “built-in gains” on sales of certain assets. Our taxable REIT subsidiaries will generally be subject to federal, state, local, and/or foreign income taxes. In order for the income from our hotel property investments to constitute “rents from real properties” for purposes of the gross income tests required for REIT qualification, the income we earn cannot be derived from the operation of any of our hotels. Therefore, we lease each of our hotel properties to a wholly-owned subsidiary of Bloodstone TRS, Inc., our taxable REIT subsidiary, or TRS, except for the Frenchman’s Reef & Morning Star Marriott Beach Resort, which is owned by a Virgin Islands corporation, which we have elected to be treated as a TRS. We had no accruals for tax uncertainties as of September 30, 2015 and December 31, 2014 . Fair Value Measurements In evaluating fair value, U.S. GAAP outlines a valuation framework and creates a fair value hierarchy that distinguishes between market assumptions based on market data (observable inputs) and a reporting entity’s own assumptions about market data (unobservable inputs). The hierarchy ranks the quality and reliability of inputs used to determine fair value, which are then classified and disclosed in one of the three categories. The three levels are as follows: • Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities • Level 2 - Inputs include quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets in markets that are not active and model-derived valuations whose inputs are observable • Level 3 - Model-derived valuations with unobservable inputs Intangible Assets and Liabilities Intangible assets and liabilities are recorded on non-market contracts assumed as part of the acquisition of certain hotels. We review the terms of agreements assumed in conjunction with the purchase of a hotel to determine if the terms are favorable or unfavorable compared to an estimated market agreement at the acquisition date. Favorable lease assets or unfavorable contract liabilities are recorded at the acquisition date and amortized using the straight-line method over the term of the agreement. We do not amortize intangible assets with indefinite useful lives, but we review these assets for impairment annually or at interim periods if events or circumstances indicate that the asset may be impaired. Use of Estimates The preparation of the financial statements in conformity with U.S. 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 from those estimates. Recently Issued Accounting Pronouncements In September 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments , which eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. Instead, acquirers must recognize measurement-period adjustments during the period in which they determine the amounts, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date. This standard is effective for annual reporting periods beginning after December 15, 2015, with early adoption permitted. We are evaluating the effect of the ASU on our consolidated financial statements and related disclosures, but we do not believe it will have a material impact on the Company’s financial position, results of operations or cash flows. In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs , which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. This standard is effective for annual reporting periods beginning after December 15, 2015, with early adoption permitted. Adoption of this standard will only affect the presentation of our balance sheet. Upon adoption we will reclassify deferred financing costs, net from total assets to be shown net of debt in the liabilities section of our balance sheet. In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis , which changes the way reporting enterprises evaluate the consolidation of limited partnerships, variable interests and similar entities. This standard is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. We are evaluating the effect of the ASU on our consolidated financial statements and related disclosures, but we do not believe it will have a material impact on the Company’s financial position, results of operations or cash flows. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , which affects virtually all aspects of an entity’s revenue recognition. The new standard sets forth five prescribed steps to determine the timing and amount of revenue to be recognized to appropriately depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , which deferred the effectiveness of ASU No. 2014-09 to reporting periods beginning after December 15, 2017 and permitted early application for annual reporting periods beginning after December 15, 2016. We have not yet completed our assessment of the effect of the new standard on our financial statements, including possible transition alternatives. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment as of September 30, 2015 and December 31, 2014 consists of the following (in thousands): September 30, 2015 December 31, 2014 Land $ 578,338 $ 508,838 Land improvements 7,994 7,994 Buildings 2,532,599 2,427,274 Furniture, fixtures and equipment 452,464 430,873 CIP 15,272 13,784 3,586,667 3,388,763 Less: accumulated depreciation (701,477 ) (624,370 ) $ 2,885,190 $ 2,764,393 As of September 30, 2015 , we had accrued capital expenditures of $5.2 million . As of December 31, 2014 , we had accrued capital expenditures of $6.2 million . |
Favorable Lease Assets
Favorable Lease Assets | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Favorable Lease Assets | Favorable Lease Assets In connection with the acquisition of certain hotels, we have recognized intangible assets for favorable ground leases and tenant leases. Our favorable lease assets, net of accumulated amortization of $2.5 million and $3.0 million as of September 30, 2015 and December 31, 2014 , respectively, consist of the following (in thousands): September 30, 2015 December 31, 2014 Westin Boston Waterfront Hotel Ground Lease $ 18,131 $ 18,293 Westin Boston Waterfront Hotel Lease Right — 9,045 Hilton Minneapolis Ground Lease 5,704 5,760 Lexington Hotel New York Tenant Leases 193 1,031 Hilton Boston Downtown Tenant Leases 29 145 $ 24,057 $ 34,274 Favorable lease assets are recorded at the acquisition date and are generally amortized using the straight-line method over the remaining non-cancelable term of the lease agreement. Amortization expense for the three months and nine months ended September 30, 2015 was approximately $0.1 million and $0.4 million , respectively. We own a favorable lease asset related to the right to acquire a leasehold interest in a parcel of land adjacent to the Westin Boston Waterfront Hotel for the development of a 320 to 350 room hotel (the “lease right”). During the second quarter of 2015, we decided not to exercise the option to acquire the leasehold interest and recorded an impairment loss of $9.6 million , which includes the write-off of $0.6 million of other assets related to the lease right included within prepaid and other assets on the accompanying condensed consolidated balance sheets. During the first quarter of 2015, we evaluated the Lexington Hotel New York favorable tenant leases for recoverability of the carrying value. The lease with one of the retail tenants at the Lexington Hotel New York was expected to terminate prior to the end of the lease term. We reviewed the favorable lease asset for impairment and concluded that the asset was not realizable and recorded an impairment loss of $0.8 million during the first quarter of 2015. The lease terminated in June 2015. |
Capital Stock
Capital Stock | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Capital Stock | Capital Stock Common Shares We are authorized to issue up to 400 million shares of common stock, $0.01 par value per share. Each outstanding share of common stock entitles the holder to one vote on all matters submitted to a vote of stockholders. Holders of our common stock are entitled to receive dividends out of assets legally available for the payment of dividends when authorized by our board of directors. We have an “at-the-market” equity offering program (the “ATM program”), pursuant to which we may issue and sell shares of our common stock from time to time, having an aggregate offering price of up to $200 million . In January 2015, we sold 524,606 shares of our common stock at an average price of $15.18 for net proceeds of $7.8 million . We have not sold any additional shares since January 2015 and there is $128.3 million remaining under the ATM program. On November 4, 2015, our board of directors approved a share repurchase program authorizing us to repurchase up to $150 million in shares of our common stock. Repurchases under this program will be made in open market or privately negotiated transactions as permitted by federal securities laws and other legal requirements. This authority may be exercised from time to time and in such amounts as market conditions warrant, and subject to regulatory considerations. The timing, manner, price and actual number of shares repurchased will depend on a variety of factors including stock price, corporate and regulatory requirements, market conditions, and other corporate liquidity requirements and priorities. The share repurchase program may be suspended or terminated at any time without prior notice. We have not repurchased any shares of our common stock since the program started. We have paid the following dividends to holders of our common stock during 2015 as follows: Payment Date Record Date Dividend per Share January 12, 2015 December 31, 2014 $ 0.1025 April 10, 2015 March 31, 2015 $ 0.1250 July 14, 2015 June 30, 2015 $ 0.1250 October 13, 2015 September 30, 2015 $ 0.1250 Preferred Shares We are authorized to issue up to 10 million shares of preferred stock, $0.01 par value per share. Our board of directors is required to set for each class or series of preferred stock the terms, preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications, and terms or conditions of redemption. As of September 30, 2015 and December 31, 2014 , there were no shares of preferred stock outstanding. Operating Partnership Units Holders of operating partnership units have certain redemption rights, which would enable them to cause our operating partnership to redeem their units in exchange for cash per unit equal to the market price of our common stock, at the time of redemption, or, at our option for shares of our common stock on a one -for-one basis. The number of shares issuable upon exercise of the redemption rights will be adjusted upon the occurrence of stock splits, mergers, consolidations or similar pro-rata share transactions, which otherwise would have the effect of diluting the ownership interests of the limited partners or our stockholders. As of September 30, 2015 and December 31, 2014 , there were no operating partnership units held by unaffiliated third parties. |
Stock Incentive Plans
Stock Incentive Plans | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Incentive Plans | Stock Incentive Plans We are authorized to issue up to 8,000,000 shares of our common stock under our 2004 Stock Option and Incentive Plan, as amended (the “Incentive Plan”), of which we have issued or committed to issue 3,923,651 shares as of September 30, 2015 . In addition to these shares, additional shares of common stock could be issued in connection with the performance stock unit awards as further described below. Restricted Stock Awards Restricted stock awards issued to our officers and employees generally vest over a 3 -year period from the date of the grant based on continued employment. We measure compensation expense for the restricted stock awards based upon the fair market value of our common stock at the date of grant. Compensation expense is recognized on a straight-line basis over the vesting period and is included in corporate expenses in the accompanying condensed consolidated statements of operations. A summary of our restricted stock awards from January 1, 2015 to September 30, 2015 is as follows: Number of Shares Weighted- Average Grant Date Fair Value Unvested balance at January 1, 2015 514,419 $ 10.82 Granted 216,159 14.48 Forfeited (183 ) 9.08 Vested (255,828 ) 10.39 Unvested balance at September 30, 2015 474,567 $ 12.72 The remaining share awards are expected to vest as follows: 241,698 shares during 2016 , 153,578 shares during 2017 and 79,291 shares during 2018 . As of September 30, 2015 , the unrecognized compensation cost related to restricted stock awards was $4.4 million and the weighted-average period over which the unrecognized compensation expense will be recorded is approximately 24 months. We recorded $0.7 million and $1.0 million , respectively, of compensation expense related to restricted stock awards for each of the three months ended September 30, 2015 and 2014 . We recorded $2.1 million and $2.4 million , respectively, of compensation expenses related to restricted stock awards for each of the nine months ended September 30, 2015 and 2014 . Market Stock Units Market stock units (“MSUs”) are restricted stock units that vest three years from the date of grant. The actual number of shares issued to each executive officer at the vesting date is based on the Company's total stockholder return over a three -year period. In March 2015, the remaining 99,047 outstanding MSUs vested, resulting in the issuance of 148,572 shares of common stock, before income tax withholding. There are no MSUs remaining following this vesting. We recorded no compensation expense related to MSUs for the three months ended September 30, 2015 and less than $0.1 million for the nine months ended September 30, 2015 . We recorded $0.1 million and $0.2 million of compensation expense related to MSUs for the three and nine months ended September 30, 2014 , respectively. Performance Stock Units Performance stock units (“PSUs”) are restricted stock units that vest three years from the date of grant. Each executive officer is granted a target number of PSUs (the “PSU Target Award”). The actual number of shares of common stock issued to each executive officer is subject to the achievement of certain levels of total stockholder return relative to the total stockholder return of a peer group of publicly traded lodging REITs over a three -year performance period. There will be no payout of shares of our common stock if our total stockholder return falls below the 30 th percentile of the total stockholder returns of the peer group. The maximum number of shares of common stock issued to an executive officer is equal to 150% of the PSU Target Award and is earned if our total stockholder return is equal to or greater than the 75 th percentile of the total stockholder returns of the peer group. The fair values of the PSU awards are determined using a Monte Carlo simulation performed by a third-party valuation firm. The determination of the grant-date fair value of the awards granted during the nine months ended September 30, 2015 included the following assumptions: Award Grant Date Volatility Risk-Free Rate Fair Value at Grant Date February 27, 2015 22.9 % 1.01 % $ 12.13 The simulations also considered the share performance of the Company and the peer group. A summary of our PSUs from January 1, 2015 to September 30, 2015 is as follows: Number of Target Units Weighted- Average Grant Date Fair Value Unvested balance at January 1, 2015 436,170 $ 10.95 Granted 218,467 12.13 Additional units from dividends 14,977 14.01 Unvested balance at September 30, 2015 669,614 $ 11.40 The remaining target units are expected to vest as follows: 236,398 units during 2016 , 210,756 units during 2017 and 222,460 units during 2018. As of September 30, 2015 , the unrecognized compensation cost related to the PSUs was $3.6 million and is expected to be recognized on a straight-line basis over a weighted average period of 23 months. We recorded $0.6 million and $0.4 million of compensation expense related to the PSUs for the three months ended September 30, 2015 and 2014 , respectively. We recorded $1.7 million and $1.0 million of compensation expense related to the PSUs for the nine months ended September 30, 2015 and 2014 , respectively. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is calculated by dividing net income available to common stockholders by the weighted-average number of common shares outstanding. Diluted earnings per share is calculated by dividing net income available to common stockholders that has been adjusted for dilutive securities, by the weighted-average number of common shares outstanding including dilutive securities. The following is a reconciliation of the calculation of basic and diluted earnings per share (in thousands, except share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Numerator: Net income $ 24,464 $ 43,808 $ 59,928 $ 99,762 Denominator: Weighted-average number of common shares outstanding—basic 200,852,072 195,796,772 200,776,641 195,733,185 Effect of dilutive securities: Unvested restricted common stock 99,873 215,834 130,349 193,477 Unexercised stock appreciation rights — 7,512 1,387 — Shares related to unvested PSUs 215,714 414,655 215,714 414,655 Weighted-average number of common shares outstanding—diluted 201,167,659 196,434,773 201,124,091 196,341,317 Earnings per share: Basic earnings per share $ 0.12 $ 0.22 $ 0.30 $ 0.51 Diluted earnings per share $ 0.12 $ 0.22 $ 0.30 $ 0.51 We did not include unexercised stock appreciation rights of 20,770 and 262,461 for the three months ended September 30, 2015 and the nine months ended September 30, 2014 , respectively, as they would be anti-dilutive. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table sets forth information regarding the Company’s debt as of September 30, 2015 (dollars in thousands): Property Principal Balance Interest Rate Maturity Date Orlando Airport Marriott (1) $ 55,254 5.68% January 2016 Chicago Marriott Downtown Magnificent Mile 202,604 5.975% April 2016 Courtyard Manhattan / Fifth Avenue 48,480 6.48% June 2016 Lexington Hotel New York 170,368 LIBOR + 2.25% (2.447% at September 30, 2015) October 2017 (2) Marriott Salt Lake City Downtown 60,369 4.25% November 2020 Hilton Minneapolis 91,231 5.464% May 2021 Westin Washington D.C. City Center 69,250 3.99% January 2023 The Lodge at Sonoma, a Renaissance Resort & Spa 29,679 3.96% April 2023 Westin San Diego 67,963 3.94% April 2023 Courtyard Manhattan / Midtown East 86,000 4.40% August 2024 Renaissance Worthington 85,000 3.66% May 2025 JW Marriott Denver at Cherry Creek 65,000 4.33% July 2025 Total mortgage debt 1,031,198 Senior unsecured credit facility 25,000 LIBOR + 1.75% (1.94% at September 30, 2015) January 2017 (3) Total debt $ 1,056,198 Weighted-Average Interest Rate 4.50% _______________________ (1) The loan was prepaid on October 9, 2015, three months prior to the scheduled maturity date. (2) The loan may be extended for two additional one -year terms subject to the satisfaction of certain conditions and the payment of an extension fee. (3) The credit facility may be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions. Mortgage Debt We have incurred limited recourse, property specific mortgage debt secured by certain of our hotels. In the event of default, the lender may only foreclose on the secured assets; however, in the event of fraud, misapplication of funds or other customary recourse provisions, the lender may seek payment from us. As of September 30, 2015 , 12 of our 29 hotels were secured by mortgage debt. Our mortgage debt contains certain property specific covenants and restrictions, including minimum debt service coverage ratios that trigger “cash trap” provisions as well as restrictions on incurring additional debt without lender consent. As of September 30, 2015 , we are in compliance with the financial covenants of our mortgage debt. On April 10, 2015, we repaid the $52.6 million mortgage loan secured by the Renaissance Worthington three months prior to the scheduled maturity date. On April 14, 2015, we entered into a new $85.0 million mortgage loan secured by the Renaissance Worthington. The new loan matures in 2025 and bears interest at a fixed rate of 3.66% . The new loan is interest-only for the first two years , after which principal will amortize on a 30 -year schedule. On May 11, 2015, we repaid the mortgage loan secured by the Frenchman's Reef & Morning Star Beach Resort three months prior to the scheduled maturity date. The loan had an outstanding principal balance of $56.2 million and incurred interest at a fixed rate of 5.44% . On July 1, 2015, we repaid the $38.1 million mortgage loan secured by the JW Marriott Denver at Cherry Creek and entered into a new $65.0 million mortgage loan. The new loan matures in 2025 and bears interest at a fixed rate of 4.33% . The new loan is interest-only for the first year, after which principal will amortize on a 30 -year schedule. On October 9, 2015, we repaid the mortgage loan secured by the Orlando Airport Marriott three months prior to the scheduled maturity date. The loan had an outstanding principal balance of $55.3 million and incurred interest at a fixed rate of 5.68% . On October 27, 2015, we entered into a new $205.0 million mortgage loan secured by the Westin Boston Waterfront Hotel. The new loan matures in 2025, bears interest at a fixed interest rate of 4.36% and will amortize on a 30 -year schedule. Senior Unsecured Credit Facility We are party to a $200 million senior unsecured credit facility, which expires in January 2017 . The maturity date of the facility may be extended for an additional year upon the payment of applicable fees and the satisfaction of certain other customary conditions. We also have the right to increase the amount of the facility up to $400 million with lender approval. Interest is paid on the periodic advances under the facility at varying rates, based upon LIBOR, plus an agreed upon additional margin amount. The applicable margin is based upon the Company’s ratio of net indebtedness to EBITDA, as follows: Ratio of Net Indebtedness to EBITDA Applicable Margin Less than 4.00 to 1.00 1.75 % Greater than or equal to 4.00 to 1.00 but less than 5.00 to 1.00 1.90 % Greater than or equal to 5.00 to 1.00 but less than 5.50 to 1.00 2.10 % Greater than or equal to 5.50 to 1.00 but less than 6.00 to 1.00 2.20 % Greater than or equal to 6.00 to 1.00 but less than 6.50 to 1.00 2.50 % Greater than or equal to 6.50 to 1.00 2.75 % In addition to the interest payable on amounts outstanding under the facility, we are required to pay an amount equal to 0.35% of the unused portion of the facility if the unused portion of the facility is greater than 50% or 0.25% if the unused portion of the facility is less than or equal to 50% . The facility contains various corporate financial covenants. A summary of the most restrictive covenants is as follows: Actual at Covenant September 30, Maximum leverage ratio (1) 60% 32.9% Minimum fixed charge coverage ratio (2) 1.50x 3.5x Minimum tangible net worth (3) $1.91 billion $2.52 billion Secured recourse indebtedness Less than 45% of Total Asset Value 32.1% _____________________________ (1) Leverage ratio is total indebtedness, as defined in the credit agreement, divided by total asset value, defined in the credit agreement as a) total cash and cash equivalents and b) the value of our owned hotels based on hotel net operating income divided by a defined capitalization rate. (2) Fixed charge coverage ratio is Adjusted EBITDA, defined in the credit agreement as EBITDA less FF&E reserves, for the most recently ending 12 months, to fixed charges, which is defined in the credit agreement as interest expense, all regularly scheduled principal payments and payments on capitalized lease obligations, for the same most recently ending 12-month period. (3) Tangible net worth, as defined in the credit agreement, is (i) total gross book value of all assets, exclusive of depreciation and amortization, less intangible assets, total indebtedness, and all other liabilities, plus (ii) 75% of net proceeds from future equity issuances. The facility requires us to maintain a specific pool of unencumbered borrowing base properties. The unencumbered borrowing base assets must include a minimum of five properties with an unencumbered borrowing base value, as defined in the credit agreement, of not less than $250 million . As of September 30, 2015 , the unencumbered borrowing base included five properties with a borrowing base value of $319 million . As of September 30, 2015 , we had $25.0 million outstanding under the facility and the Company's ratio of net indebtedness to EBITDA was 3.55 x. Accordingly, interest on our current and future borrowings, if any, under the facility will be based on LIBOR plus 175 basis points for the next quarter. We incurred interest and unused credit facility fees on the facility of $0.4 million and $0.2 million for the three months ended September 30, 2015 and 2014 , respectively. We incurred interest and unused credit facility fees on the facility of $0.8 million and $0.6 million for the nine months ended September 30, 2015 and 2014 , respectively. Subsequent to September 30, 2015 , we borrowed an incremental $60.0 million on the facility to fund the prepayment of the mortgage loan secured by the Orlando Airport Marriott. Following the closing of the mortgage loan secured by the Westin Boston Waterfront Hotel, we repaid the $85.0 million outstanding under the facility. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On February 6, 2015, we acquired the 157 -room Shorebreak Hotel located in Huntington Beach, California for a contractual purchase price of $58.5 million . Upon acquisition of the hotel, we entered into a 10 -year management agreement with Kimpton Hotel and Restaurant Group, LLC. The management agreement provides for a base management fee of 1.25% of gross revenues during 2015 and 2.5% of gross revenues thereafter. The agreement also provides for an incentive management fee of 15% of hotel operating profit above an owner's priority determined in accordance with the terms of the management agreement. We own a 95.5% undivided interest in the land underlying the hotel and lease the remaining 4.5% under a long-term ground lease, which expires in 2100, including extension options. In 2021 and at certain points thereafter, we have the option to purchase the 4.5% leasehold interest at the greater of the then current rent divided by 10% or fair market value. We reviewed the terms of the ground lease in conjunction with the hotel purchase accounting and concluded that the terms are unfavorable to us compared with a current market ground lease. As a result, we recorded a $0.3 million unfavorable lease liability. We expect to exercise the leasehold purchase option in 2021. Accordingly, the unfavorable lease liability will be amortized over the remaining term through 2021. On June 30, 2015, we acquired the 184 -suite Sheraton Suites Key West located in Key West, Florida for a contractual purchase price of $94.0 million . The acquisition was funded with a combination of corporate cash on hand and a draw on our senior unsecured credit facility. We assumed the existing management agreement with Ocean Properties, which expires in July 2027 and provides for a base management fee of 3.0% of gross revenues and an incentive management fee of 10% of hotel operating profit above an owner's priority determined in accordance with the terms of the management agreement. The following table summarizes the preliminary estimated fair value of the assets acquired and liabilities assumed in our acquisitions (in thousands): Shorebreak Hotel Sheraton Suites Key West Land $ 19,908 $ 49,592 Building and improvements 37,525 43,030 Furnitures, fixtures and equipment 1,338 1,378 Total fixed assets 58,771 94,000 Unfavorable lease liability (349 ) — Other assets and liabilities, net 401 428 Total $ 58,823 $ 94,428 We believe all material adjustments necessary to reflect the effects of the acquisitions have been made; however, the amounts recorded are based on a preliminary estimate of the fair value of the assets acquired and the liabilities assumed. We will finalize the recorded amounts upon the completion of our valuation analysis of the assets acquired and liabilities assumed. Acquired properties are included in our results of operations from the date of acquisition. The following pro forma financial information presents our results of operations (in thousands, except per share data) as if the hotels acquired in 2015 and 2014 were acquired on January 1, 2014 and January 1, 2013, respectively. The pro forma financial information does not include the Hilton Garden Inn Times Square Central, since the hotel opened on September 1, 2014. The pro forma information is not necessarily indicative of the results that actually would have occurred nor does it indicate future operating results. Three Months Ended September 30, Nine Months Ending September 30, 2015 2014 2015 2014 Revenues $ 238,502 $ 245,358 $ 708,750 $ 711,481 Net income $ 24,464 $ 44,624 $ 63,481 $ 110,724 Earnings per share: Basic earnings per share $ 0.12 $ 0.23 $ 0.32 $ 0.57 Diluted earnings per share $ 0.12 $ 0.23 $ 0.32 $ 0.56 For the three and nine months ended September 30, 2015 , our condensed consolidated statements of operations include $7.9 million and $13.7 million , respectively, of revenues and $2.3 million and $3.0 million , respectively, of net income related to the operations of the Shorebreak Hotel and Sheraton Suites Key West. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of certain financial assets and liabilities and other financial instruments as of September 30, 2015 and December 31, 2014 , in thousands, is as follows: September 30, 2015 December 31, 2014 Carrying Amount Fair Value Carrying Amount Fair Value Debt $ 1,056,198 $ 1,058,655 $ 1,038,330 $ 1,059,988 The fair value of our mortgage debt is a Level 2 measurement under the fair value hierarchy (see Note 2). We estimate the fair value of our mortgage debt by discounting the future cash flows of each instrument at estimated market rates. The carrying value of our other financial instruments approximate fair value due to the short-term nature of these financial instruments. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation We are subject to various claims, lawsuits and legal proceedings, including routine litigation arising in the ordinary course of business, regarding the operation of our hotels and company matters. While it is not possible to ascertain the ultimate outcome of such matters, management 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 our financial condition or results of operations. The outcome of claims, lawsuits and legal proceedings brought against the Company, however, is subject to significant uncertainties. Income Taxes The Frenchman’s Reef & Morning Star Marriott Beach Resort is owned by a subsidiary that has elected to be treated as a TRS, and is subject to U.S. Virgin Island ("USVI") income taxes. We were party to a tax agreement with the USVI that reduced the income tax rate to approximately 7% . This agreement expired on February 14, 2015. The income tax expense related to the TRS that owns Frenchman’s Reef reflects the statutory tax rate of 37.4% from February 15, 2015 through September 30, 2015. Subsequent to September 30, 2015, we were granted a 15 -year extension of the tax agreement, which is retroactive to February 15, 2015. Accordingly, the income tax expense and deferred tax assets and liabilities will be adjusted during the fourth quarter to reflect the lower rate from February 15, 2015. |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, in the accompanying unaudited condensed consolidated financial statements. We believe the disclosures made are adequate to prevent the information presented from being misleading. However, the unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2014 , included in our Annual Report on Form 10-K filed on February 27, 2015 . In our opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments necessary to present fairly our financial position as of September 30, 2015 , the results of our operations for the three and nine months ended September 30, 2015 and 2014 and cash flows for the nine months ended September 30, 2015 and 2014 . Interim results are not necessarily indicative of full-year performance because of the impact of seasonal and short-term variations. Our financial statements include all of the accounts of the Company and its subsidiaries in accordance with U.S. GAAP. All intercompany accounts and transactions have been eliminated in consolidation. If the Company determines that it has an interest in a variable interest entity within the meaning of the FASB ASC 810, Consolidation , the Company will consolidate the entity when it is determined to be the primary beneficiary of the entity. |
Property and Equipment | Property and Equipment Investments in hotel properties, land, land improvements, building and furniture, fixtures and equipment 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 is computed using the straight-line method over the estimated useful lives of the assets, generally 15 to 40 years for buildings, land improvements, and building improvements and 1 to 10 years for furniture, fixtures and equipment. Leasehold improvements are amortized over the shorter of the lease term or the useful lives of the related assets. We review our investments in hotel properties for impairment whenever events or changes in circumstances indicate that the carrying value of the hotel properties may not be recoverable. Events or circumstances that may cause a review include, but are not limited to, adverse changes in the demand for lodging at the properties due to declining national or local economic conditions and/or new hotel construction in markets where the hotels are located. When such conditions exist, management performs an analysis to determine if the estimated undiscounted future cash flows from operations and the proceeds from the ultimate disposition of a hotel, less costs to sell, exceed its carrying value. If the estimated undiscounted future cash flows are less than the carrying amount of the asset, an adjustment to reduce the carrying amount to the related hotel’s estimated fair market value is recorded and an impairment loss is recognized. We have not recognized any impairment loss for our investment in hotel properties during any of the periods presented. We will classify a hotel as held for sale in the period that we have made the decision to dispose of the hotel, a binding agreement to purchase the property has been signed under which the buyer has committed a significant amount of nonrefundable cash and no significant financing or other contingencies exist which could cause the transaction to not be completed in a timely manner. If these criteria are met, we will record an impairment loss if the fair value less costs to sell is lower than the carrying amount of the hotel and related assets and will cease recording depreciation expense. We will classify the assets and related liabilities as held for sale on the balance sheet. |
Revenue Recognition | Revenue Recognition Revenues from operations of the hotels are recognized when the services are provided. Revenues consist of room sales, food and beverage sales, and other hotel department revenues, such as telephone, parking, gift shop sales and resort fees. |
Earnings Per Share | Earnings Per Share Basic earnings per share is calculated by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is calculated by dividing net income by the weighted-average number of common shares outstanding during the period plus other potentially dilutive securities such as equity awards or shares issuable in the event of conversion of operating partnership units. No adjustment is made for shares that are anti-dilutive during a period. |
Stock-based Compensation | Stock-based Compensation We account for stock-based employee compensation using the fair value based method of accounting. We record the cost of stock-based awards based on the grant-date fair value of the award. That cost is recognized over the period during which an employee is required to provide service in exchange for the award. No compensation cost is recognized for equity instruments for which employees do not render the requisite service. |
Income Taxes | Income Taxes We account for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rates is recognized in earnings during the period in which the new rate is enacted. We have elected to be treated as a real estate investment trust (“REIT”) under the provisions of the Internal Revenue Code of 1986, as amended (the "Code"), which requires that we distribute at least 90% of our taxable income annually to our stockholders and comply with certain other requirements. In addition to paying federal and state taxes on any retained income, we may be subject to taxes on “built-in gains” on sales of certain assets. Our taxable REIT subsidiaries will generally be subject to federal, state, local, and/or foreign income taxes. In order for the income from our hotel property investments to constitute “rents from real properties” for purposes of the gross income tests required for REIT qualification, the income we earn cannot be derived from the operation of any of our hotels. Therefore, we lease each of our hotel properties to a wholly-owned subsidiary of Bloodstone TRS, Inc., our taxable REIT subsidiary, or TRS, except for the Frenchman’s Reef & Morning Star Marriott Beach Resort, which is owned by a Virgin Islands corporation, which we have elected to be treated as a TRS. |
Fair Value Measurements | Fair Value Measurements In evaluating fair value, U.S. GAAP outlines a valuation framework and creates a fair value hierarchy that distinguishes between market assumptions based on market data (observable inputs) and a reporting entity’s own assumptions about market data (unobservable inputs). The hierarchy ranks the quality and reliability of inputs used to determine fair value, which are then classified and disclosed in one of the three categories. The three levels are as follows: • Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities • Level 2 - Inputs include quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets in markets that are not active and model-derived valuations whose inputs are observable • Level 3 - Model-derived valuations with unobservable inputs |
Intangible Assets and Liabilities | Intangible Assets and Liabilities Intangible assets and liabilities are recorded on non-market contracts assumed as part of the acquisition of certain hotels. We review the terms of agreements assumed in conjunction with the purchase of a hotel to determine if the terms are favorable or unfavorable compared to an estimated market agreement at the acquisition date. Favorable lease assets or unfavorable contract liabilities are recorded at the acquisition date and amortized using the straight-line method over the term of the agreement. We do not amortize intangible assets with indefinite useful lives, but we review these assets for impairment annually or at interim periods if events or circumstances indicate that the asset may be impaired. |
Use of Estimates | Use of Estimates The preparation of the financial statements in conformity with U.S. 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 from those estimates. |
Recent Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In September 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments , which eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. Instead, acquirers must recognize measurement-period adjustments during the period in which they determine the amounts, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date. This standard is effective for annual reporting periods beginning after December 15, 2015, with early adoption permitted. We are evaluating the effect of the ASU on our consolidated financial statements and related disclosures, but we do not believe it will have a material impact on the Company’s financial position, results of operations or cash flows. In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs , which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. This standard is effective for annual reporting periods beginning after December 15, 2015, with early adoption permitted. Adoption of this standard will only affect the presentation of our balance sheet. Upon adoption we will reclassify deferred financing costs, net from total assets to be shown net of debt in the liabilities section of our balance sheet. In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis , which changes the way reporting enterprises evaluate the consolidation of limited partnerships, variable interests and similar entities. This standard is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. We are evaluating the effect of the ASU on our consolidated financial statements and related disclosures, but we do not believe it will have a material impact on the Company’s financial position, results of operations or cash flows. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , which affects virtually all aspects of an entity’s revenue recognition. The new standard sets forth five prescribed steps to determine the timing and amount of revenue to be recognized to appropriately depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , which deferred the effectiveness of ASU No. 2014-09 to reporting periods beginning after December 15, 2017 and permitted early application for annual reporting periods beginning after December 15, 2016. We have not yet completed our assessment of the effect of the new standard on our financial statements, including possible transition alternatives. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Property and equipment as of September 30, 2015 and December 31, 2014 consists of the following (in thousands): September 30, 2015 December 31, 2014 Land $ 578,338 $ 508,838 Land improvements 7,994 7,994 Buildings 2,532,599 2,427,274 Furniture, fixtures and equipment 452,464 430,873 CIP 15,272 13,784 3,586,667 3,388,763 Less: accumulated depreciation (701,477 ) (624,370 ) $ 2,885,190 $ 2,764,393 |
Favorable Lease Assets (Tables)
Favorable Lease Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets by Major Class | Our favorable lease assets, net of accumulated amortization of $2.5 million and $3.0 million as of September 30, 2015 and December 31, 2014 , respectively, consist of the following (in thousands): September 30, 2015 December 31, 2014 Westin Boston Waterfront Hotel Ground Lease $ 18,131 $ 18,293 Westin Boston Waterfront Hotel Lease Right — 9,045 Hilton Minneapolis Ground Lease 5,704 5,760 Lexington Hotel New York Tenant Leases 193 1,031 Hilton Boston Downtown Tenant Leases 29 145 $ 24,057 $ 34,274 |
Capital Stock (Tables)
Capital Stock (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Schedule of Dividends Payable | We have paid the following dividends to holders of our common stock during 2015 as follows: Payment Date Record Date Dividend per Share January 12, 2015 December 31, 2014 $ 0.1025 April 10, 2015 March 31, 2015 $ 0.1250 July 14, 2015 June 30, 2015 $ 0.1250 October 13, 2015 September 30, 2015 $ 0.1250 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Restricted Stock Awards | A summary of our restricted stock awards from January 1, 2015 to September 30, 2015 is as follows: Number of Shares Weighted- Average Grant Date Fair Value Unvested balance at January 1, 2015 514,419 $ 10.82 Granted 216,159 14.48 Forfeited (183 ) 9.08 Vested (255,828 ) 10.39 Unvested balance at September 30, 2015 474,567 $ 12.72 |
Schedule of Stock Options Valuation Assumptions | The fair values of the PSU awards are determined using a Monte Carlo simulation performed by a third-party valuation firm. The determination of the grant-date fair value of the awards granted during the nine months ended September 30, 2015 included the following assumptions: Award Grant Date Volatility Risk-Free Rate Fair Value at Grant Date February 27, 2015 22.9 % 1.01 % $ 12.13 |
Schedule of Nonvested Performance-based Units Activity | A summary of our PSUs from January 1, 2015 to September 30, 2015 is as follows: Number of Target Units Weighted- Average Grant Date Fair Value Unvested balance at January 1, 2015 436,170 $ 10.95 Granted 218,467 12.13 Additional units from dividends 14,977 14.01 Unvested balance at September 30, 2015 669,614 $ 11.40 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of earnings (loss) per share, basic and diluted | The following is a reconciliation of the calculation of basic and diluted earnings per share (in thousands, except share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Numerator: Net income $ 24,464 $ 43,808 $ 59,928 $ 99,762 Denominator: Weighted-average number of common shares outstanding—basic 200,852,072 195,796,772 200,776,641 195,733,185 Effect of dilutive securities: Unvested restricted common stock 99,873 215,834 130,349 193,477 Unexercised stock appreciation rights — 7,512 1,387 — Shares related to unvested PSUs 215,714 414,655 215,714 414,655 Weighted-average number of common shares outstanding—diluted 201,167,659 196,434,773 201,124,091 196,341,317 Earnings per share: Basic earnings per share $ 0.12 $ 0.22 $ 0.30 $ 0.51 Diluted earnings per share $ 0.12 $ 0.22 $ 0.30 $ 0.51 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Summary of long term debt | The following table sets forth information regarding the Company’s debt as of September 30, 2015 (dollars in thousands): Property Principal Balance Interest Rate Maturity Date Orlando Airport Marriott (1) $ 55,254 5.68% January 2016 Chicago Marriott Downtown Magnificent Mile 202,604 5.975% April 2016 Courtyard Manhattan / Fifth Avenue 48,480 6.48% June 2016 Lexington Hotel New York 170,368 LIBOR + 2.25% (2.447% at September 30, 2015) October 2017 (2) Marriott Salt Lake City Downtown 60,369 4.25% November 2020 Hilton Minneapolis 91,231 5.464% May 2021 Westin Washington D.C. City Center 69,250 3.99% January 2023 The Lodge at Sonoma, a Renaissance Resort & Spa 29,679 3.96% April 2023 Westin San Diego 67,963 3.94% April 2023 Courtyard Manhattan / Midtown East 86,000 4.40% August 2024 Renaissance Worthington 85,000 3.66% May 2025 JW Marriott Denver at Cherry Creek 65,000 4.33% July 2025 Total mortgage debt 1,031,198 Senior unsecured credit facility 25,000 LIBOR + 1.75% (1.94% at September 30, 2015) January 2017 (3) Total debt $ 1,056,198 Weighted-Average Interest Rate 4.50% _______________________ (1) The loan was prepaid on October 9, 2015, three months prior to the scheduled maturity date. (2) The loan may be extended for two additional one -year terms subject to the satisfaction of certain conditions and the payment of an extension fee. (3) The credit facility may be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions. |
Summary of applicable margin based upon the Company’s ratio of net indebtedness to EBITDA | The applicable margin is based upon the Company’s ratio of net indebtedness to EBITDA, as follows: Ratio of Net Indebtedness to EBITDA Applicable Margin Less than 4.00 to 1.00 1.75 % Greater than or equal to 4.00 to 1.00 but less than 5.00 to 1.00 1.90 % Greater than or equal to 5.00 to 1.00 but less than 5.50 to 1.00 2.10 % Greater than or equal to 5.50 to 1.00 but less than 6.00 to 1.00 2.20 % Greater than or equal to 6.00 to 1.00 but less than 6.50 to 1.00 2.50 % Greater than or equal to 6.50 to 1.00 2.75 % |
Summary of the most restrictive covenants for senior unsecured credit facility | The facility contains various corporate financial covenants. A summary of the most restrictive covenants is as follows: Actual at Covenant September 30, Maximum leverage ratio (1) 60% 32.9% Minimum fixed charge coverage ratio (2) 1.50x 3.5x Minimum tangible net worth (3) $1.91 billion $2.52 billion Secured recourse indebtedness Less than 45% of Total Asset Value 32.1% _____________________________ (1) Leverage ratio is total indebtedness, as defined in the credit agreement, divided by total asset value, defined in the credit agreement as a) total cash and cash equivalents and b) the value of our owned hotels based on hotel net operating income divided by a defined capitalization rate. (2) Fixed charge coverage ratio is Adjusted EBITDA, defined in the credit agreement as EBITDA less FF&E reserves, for the most recently ending 12 months, to fixed charges, which is defined in the credit agreement as interest expense, all regularly scheduled principal payments and payments on capitalized lease obligations, for the same most recently ending 12-month period. (3) Tangible net worth, as defined in the credit agreement, is (i) total gross book value of all assets, exclusive of depreciation and amortization, less intangible assets, total indebtedness, and all other liabilities, plus (ii) 75% of net proceeds from future equity issuances. |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Schedule of Acquired Assets and Liabilities | The following table summarizes the preliminary estimated fair value of the assets acquired and liabilities assumed in our acquisitions (in thousands): Shorebreak Hotel Sheraton Suites Key West Land $ 19,908 $ 49,592 Building and improvements 37,525 43,030 Furnitures, fixtures and equipment 1,338 1,378 Total fixed assets 58,771 94,000 Unfavorable lease liability (349 ) — Other assets and liabilities, net 401 428 Total $ 58,823 $ 94,428 |
Pro Forma Operating Information | The following pro forma financial information presents our results of operations (in thousands, except per share data) as if the hotels acquired in 2015 and 2014 were acquired on January 1, 2014 and January 1, 2013, respectively. The pro forma financial information does not include the Hilton Garden Inn Times Square Central, since the hotel opened on September 1, 2014. The pro forma information is not necessarily indicative of the results that actually would have occurred nor does it indicate future operating results. Three Months Ended September 30, Nine Months Ending September 30, 2015 2014 2015 2014 Revenues $ 238,502 $ 245,358 $ 708,750 $ 711,481 Net income $ 24,464 $ 44,624 $ 63,481 $ 110,724 Earnings per share: Basic earnings per share $ 0.12 $ 0.23 $ 0.32 $ 0.57 Diluted earnings per share $ 0.12 $ 0.23 $ 0.32 $ 0.56 |
Fair Value of Financial Instr25
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair value of certain financial assets and liabilities and other financial instruments | The fair value of certain financial assets and liabilities and other financial instruments as of September 30, 2015 and December 31, 2014 , in thousands, is as follows: September 30, 2015 December 31, 2014 Carrying Amount Fair Value Carrying Amount Fair Value Debt $ 1,056,198 $ 1,058,655 $ 1,038,330 $ 1,059,988 |
Organization (Details)
Organization (Details) | Sep. 30, 2015Hotelroom |
Real Estate Properties [Line Items] | |
Number of hotels (in hotels) | 29 |
Number of rooms in hotels, resorts and senior loan secured facility (in rooms) | room | 10,928 |
Atlanta, Georgia [Member] | |
Real Estate Properties [Line Items] | |
Number of hotels (in hotels) | 1 |
Boston, Massachusetts [Member] | |
Real Estate Properties [Line Items] | |
Number of hotels (in hotels) | 2 |
Burlington, Vermont [Member] | |
Real Estate Properties [Line Items] | |
Number of hotels (in hotels) | 1 |
Charleston, South Carolina [Member] | |
Real Estate Properties [Line Items] | |
Number of hotels (in hotels) | 1 |
Chicago, Illinois [Member] | |
Real Estate Properties [Line Items] | |
Number of hotels (in hotels) | 2 |
Denver, Colorado [Member] | |
Real Estate Properties [Line Items] | |
Number of hotels (in hotels) | 2 |
Fort Lauderdale, Florida [Member] | |
Real Estate Properties [Line Items] | |
Number of hotels (in hotels) | 1 |
Fort Worth, Texas [Member] | |
Real Estate Properties [Line Items] | |
Number of hotels (in hotels) | 1 |
Huntington Beach, California [Member] | |
Real Estate Properties [Line Items] | |
Number of hotels (in hotels) | 1 |
Key West, Florida [Member] | |
Real Estate Properties [Line Items] | |
Number of hotels (in hotels) | 2 |
Minneapolis, Minnesota [Member] | |
Real Estate Properties [Line Items] | |
Number of hotels (in hotels) | 1 |
New York, New York [Member] | |
Real Estate Properties [Line Items] | |
Number of hotels (in hotels) | 5 |
Orlando, Florida [Member] | |
Real Estate Properties [Line Items] | |
Number of hotels (in hotels) | 1 |
Salt Lake City, Utah [Member] | |
Real Estate Properties [Line Items] | |
Number of hotels (in hotels) | 1 |
San Diego, California [Member] | |
Real Estate Properties [Line Items] | |
Number of hotels (in hotels) | 1 |
San Francisco, California [Member] | |
Real Estate Properties [Line Items] | |
Number of hotels (in hotels) | 1 |
Sonoma, California [Member] | |
Real Estate Properties [Line Items] | |
Number of hotels (in hotels) | 1 |
Washington D.C [Member] | |
Real Estate Properties [Line Items] | |
Number of hotels (in hotels) | 2 |
St. Thomas, U.S. Virgin Islands [Member] | |
Real Estate Properties [Line Items] | |
Number of hotels (in hotels) | 1 |
Vail, Colorado [Member] | |
Real Estate Properties [Line Items] | |
Number of hotels (in hotels) | 1 |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Accrual for tax uncertainties | $ 0 | $ 0 |
Minimum [Member] | Buildings, Land Improvements, and Building Improvements [Member] | ||
Useful life | 15 years | |
Minimum [Member] | Furniture, Fixtures and Equipment [Member] | ||
Useful life | 1 year | |
Maximum [Member] | Buildings, Land Improvements, and Building Improvements [Member] | ||
Useful life | 40 years | |
Maximum [Member] | Furniture, Fixtures and Equipment [Member] | ||
Useful life | 10 years |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Accrued capital expenditures | $ 5,200 | $ 6,200 |
Property and Equipment | ||
Property and equipment, at cost | 3,586,667 | 3,388,763 |
Less: accumulated depreciation | (701,477) | (624,370) |
Property and equipment, net | 2,885,190 | 2,764,393 |
Land [Member] | ||
Property and Equipment | ||
Property and equipment, at cost | 578,338 | 508,838 |
Land improvements [Member] | ||
Property and Equipment | ||
Property and equipment, at cost | 7,994 | 7,994 |
Buildings [Member] | ||
Property and Equipment | ||
Property and equipment, at cost | 2,532,599 | 2,427,274 |
Furniture, Fixtures and Equipment [Member] | ||
Property and Equipment | ||
Property and equipment, at cost | 452,464 | 430,873 |
CIP [Member] | ||
Property and Equipment | ||
Property and equipment, at cost | $ 15,272 | $ 13,784 |
Favorable Lease Assets (Details
Favorable Lease Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Indefinite-lived Intangible Assets by Major Class [Line Items] | ||
Favorable lease assets, net | $ 24,057 | $ 34,274 |
Above Market Leases Ground [Member] | Boston Westin Waterfront [Member] | ||
Indefinite-lived Intangible Assets by Major Class [Line Items] | ||
Carrying amount of the lease right | 18,131 | 18,293 |
Above Market Leases Ground [Member] | Hilton Minneapolis [Member] | ||
Indefinite-lived Intangible Assets by Major Class [Line Items] | ||
Carrying amount of the lease right | 5,704 | 5,760 |
Above Market Leases Ground [Member] | Lexington Hotel New York [Member] | ||
Indefinite-lived Intangible Assets by Major Class [Line Items] | ||
Carrying amount of the lease right | 193 | 1,031 |
Above Market Leases Ground [Member] | Hilton Boston Downtown Member] | ||
Indefinite-lived Intangible Assets by Major Class [Line Items] | ||
Carrying amount of the lease right | 29 | 145 |
Above Market Lease Rights [Member] | Boston Westin Waterfront [Member] | ||
Indefinite-lived Intangible Assets by Major Class [Line Items] | ||
Nonamortizable intangible asset | $ 0 | $ 9,045 |
Favorable Lease Assets - Narrat
Favorable Lease Assets - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2015USD ($)room | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)room | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Business Acquisition [Line Items] | |||||||
Finite-lived intangible assets, amortization expense | $ 100 | $ 400 | |||||
Write off of assets | 0 | $ 0 | 10,461 | $ 0 | |||
Off-Market Favorable Lease [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Accumulated amortization | $ 2,500 | $ 2,500 | $ 3,000 | ||||
Above Market Lease Rights [Member] | Boston Westin Waterfront [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Impairment of favorable lease asset | $ 9,600 | ||||||
Above Market Lease Rights [Member] | Boston Westin Waterfront [Member] | Minimum [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Number of room hotel for development for which favorable lease assets are owned (in rooms) | room | 320 | 320 | |||||
Above Market Lease Rights [Member] | Boston Westin Waterfront [Member] | Maximum [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Number of room hotel for development for which favorable lease assets are owned (in rooms) | room | 350 | 350 | |||||
Above Market Lease Rights [Member] | Boston Westin Waterfront [Member] | Prepaid Expenses and Other Assets [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Write off of assets | $ 600 | ||||||
Above Market Leases Ground [Member] | Lexington Hotel New York [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Impairment of favorable lease asset | $ 800 |
Capital Stock (Details)
Capital Stock (Details) $ / shares in Units, $ in Thousands | Oct. 13, 2015$ / shares | Jul. 14, 2015$ / shares | Apr. 10, 2015$ / shares | Jan. 12, 2015$ / shares | Jan. 31, 2015USD ($)$ / sharesshares | Sep. 30, 2015USD ($)$ / sharesshares | Sep. 30, 2014USD ($) | Nov. 04, 2015USD ($) | Dec. 31, 2014$ / sharesshares |
Dividends Payable [Line Items] | |||||||||
Common stock, shares authorized | shares | 400,000,000 | 400,000,000 | |||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||||||
Proceeds from sale of common stock | $ 7,796 | $ 0 | |||||||
Preferred stock, shares authorized | shares | 10,000,000 | 10,000,000 | |||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||||||
Preferred Stock, shares outstanding | shares | 0 | 0 | |||||||
Common stock partnership units option redemption ratio | 1 | ||||||||
Dividends per Share (in dollars per share) | $ / shares | $ 0.1250 | $ 0.1250 | $ 0.1025 | ||||||
Subsequent Event [Member] | |||||||||
Dividends Payable [Line Items] | |||||||||
Dividends per Share (in dollars per share) | $ / shares | $ 0.1250 | ||||||||
Unaffiliated Third Parties [Member] | |||||||||
Dividends Payable [Line Items] | |||||||||
Operating partnerships units held (in shares) | shares | 0 | 0 | |||||||
Common Stock [Member] | |||||||||
Dividends Payable [Line Items] | |||||||||
Aggregate offering price | $ 200,000 | ||||||||
Common stock sold in offering (in shares) | shares | 524,606 | ||||||||
Share price of common stock sold (in dollars per share) | $ / shares | $ 15.18 | ||||||||
Proceeds from sale of common stock | $ 7,800 | ||||||||
Remaining amount under ATM program | $ 128,300 | ||||||||
Common Stock [Member] | Subsequent Event [Member] | |||||||||
Dividends Payable [Line Items] | |||||||||
Value amount of shares authorized to be repurchased | $ 150,000 |
Stock Incentive Plans (Details)
Stock Incentive Plans (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock, shares issued | 200,741,777 | 200,741,777 | 199,964,041 | ||
Performance period (in years) | 3 years | ||||
Percentage of target award of maximum possible payout to executives | 150.00% | ||||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period (in years) | 3 years | ||||
Awards expected to vest in 2016 (in shares) | 241,698 | 241,698 | |||
Awards expected to vest in 2017 (in shares) | 153,578 | 153,578 | |||
Awards expected to vest in 2018 (in shares) | 79,291 | 79,291 | |||
Unrecognized compensation cost | $ 4,400,000 | $ 4,400,000 | |||
Unrecognized compensation expense related to compensation awards, period for recognition (in months) | 24 months | ||||
Compensation expense | $ 700,000 | $ 1,000,000 | $ 2,100,000 | $ 2,400,000 | |
Number of unvested shares outstanding | 474,567 | 474,567 | 514,419 | ||
Shares vested during period | 255,828 | ||||
Market Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stockholder return period (in years) | 3 years | ||||
Market Stock Units [Member] | Executive Officers [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period (in years) | 3 years | ||||
Compensation expense | $ 0 | 100,000 | $ 100,000 | 200,000 | |
Number of unvested shares outstanding | 0 | 0 | |||
Shares vested during period | 99,047 | ||||
Common stock, shares issued | 148,572 | 148,572 | |||
Performance Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period (in years) | 3 years | ||||
Awards expected to vest in 2016 (in shares) | 236,398 | 236,398 | |||
Awards expected to vest in 2017 (in shares) | 210,756 | 210,756 | |||
Awards expected to vest in 2018 (in shares) | 222,460 | 222,460 | |||
Unrecognized compensation cost | $ 3,600,000 | $ 3,600,000 | |||
Unrecognized compensation expense related to compensation awards, period for recognition (in months) | 23 months | ||||
Compensation expense | $ 600,000 | $ 400,000 | $ 1,700,000 | $ 1,000,000 | |
Number of unvested shares outstanding | 669,614 | 669,614 | 436,170 | ||
Percentage of total stockholder return for payout of shares | 30.00% | ||||
Performance Stock Units [Member] | Executive Officers [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of total stockholder return for payout of shares | 75.00% | ||||
2004 Stock Option and Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock option and Incentive plan, shares authorized | 8,000,000 | 8,000,000 | |||
Number of shares issued or committed to issue | 3,923,651 | 3,923,651 |
Stock Incentive Plans - Stock A
Stock Incentive Plans - Stock Awards Activity (Details) | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Restricted Stock [Member] | |
Number of Shares | |
Number of shares, Beginning Balance | 514,419 |
Number of shares, Granted | 216,159 |
Number of shares, Forfeited | (183) |
Number of shares, Vested | (255,828) |
Number of shares, Ending Balance | 474,567 |
Weighted- Average Grant Date Fair Value | |
Weighted-average grant date fair value, Beginning balance (in dollars per share) | $ / shares | $ 10.82 |
Weighted-average grant date fair value, Granted (in dollars per share) | $ / shares | 14.48 |
Weighted-average grant date fair value, Forfeited (in dollars per share) | $ / shares | 9.08 |
Weighted-average grant date fair value, Vested (in dollars per share) | $ / shares | 10.39 |
Weighted-average grant date fair value, Ending balance (in dollars per share) | $ / shares | $ 12.72 |
Performance Stock Units [Member] | |
Number of Shares | |
Number of shares, Beginning Balance | 436,170 |
Number of shares, Granted | 218,467 |
Number of shares, Additional units from dividends | 14,977 |
Number of shares, Ending Balance | 669,614 |
Weighted- Average Grant Date Fair Value | |
Weighted-average grant date fair value, Beginning balance (in dollars per share) | $ / shares | $ 10.95 |
Weighted-average grant date fair value, Granted (in dollars per share) | $ / shares | 12.13 |
Weighted-average grant date fair value, Additional units from dividends (in dollars per share) | $ / shares | 14.01 |
Weighted-average grant date fair value, Ending balance (in dollars per share) | $ / shares | $ 11.40 |
Stock Incentive Plans - Valuati
Stock Incentive Plans - Valuation Assumptions (Details) - February 27, 2015 [Member] | 9 Months Ended |
Sep. 30, 2015$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Volatility | 22.90% |
Risk-Free Rate | 1.01% |
Fair Value at Grant Date (in dollars per share) | $ 12.13 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Numerator: | ||||
Net income | $ 24,464 | $ 43,808 | $ 59,928 | $ 99,762 |
Denominator: | ||||
Weighted-average number of common shares outstanding—basic (in shares) | 200,852,072 | 195,796,772 | 200,776,641 | 195,733,185 |
Weighted-average number of common shares outstanding—diluted (in shares) | 201,167,659 | 196,434,773 | 201,124,091 | 196,341,317 |
Earnings per share: | ||||
Basic earnings per share (in dollars per share) | $ 0.12 | $ 0.22 | $ 0.30 | $ 0.51 |
Diluted earnings per share (in dollars per share) | $ 0.12 | $ 0.22 | $ 0.30 | $ 0.51 |
Stock Appreciation Rights (SARs) [Member] | ||||
Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from calculation (in shares) | 20,770 | 262,461 | ||
Unvested restricted common stock [Member] | ||||
Denominator: | ||||
Unvested Stock/SARs/MSUs (in shares) | 99,873 | 215,834 | 130,349 | 193,477 |
Stock Appreciation Rights [Member] | ||||
Denominator: | ||||
Unvested Stock/SARs/MSUs (in shares) | 0 | 7,512 | 1,387 | 0 |
Shares related to unvested PSUs [Member] | ||||
Denominator: | ||||
Unvested Stock/SARs/MSUs (in shares) | 215,714 | 414,655 | 215,714 | 414,655 |
Debt - Schedule of Long Term De
Debt - Schedule of Long Term Debt (Details) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2015USD ($)extension | Jul. 02, 2015 | Apr. 14, 2015 | Dec. 31, 2014USD ($) | |
Debt Instrument [Line Items] | ||||
Total mortgage debt | $ 1,031,198 | $ 1,038,330 | ||
Senior unsecured credit facility | 25,000 | 0 | ||
Total debt | $ 1,056,198 | $ 1,038,330 | ||
Weighted - Average Interest Rate (as a percent) | 4.50% | |||
Mortgages [Member] | ||||
Debt Instrument [Line Items] | ||||
Total mortgage debt | $ 1,031,198 | |||
Senior unsecured credit facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior unsecured credit facility | $ 25,000 | |||
Line of credit, Variable rate basis description | LIBOR + 1.75% (1.94% at September 30, 2015) | |||
Debt instrument, interest rate at period end (as a percent) | 1.94% | |||
Senior unsecured credit facility [Member] | LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.75% | |||
Orlando Airport Marriott [Member] | Mortgages [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal balance | $ 55,254 | |||
Interest rate | 5.68% | |||
Chicago Marriott Downtown Magnificent Mile [Member] | Mortgages [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal balance | $ 202,604 | |||
Interest rate | 5.975% | |||
Courtyard Manhattan / Fifth Avenue [Member] | Mortgages [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal balance | $ 48,480 | |||
Interest rate | 6.48% | |||
Lexington Hotel New York [Member] | Mortgages [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal balance | $ 170,368 | |||
Debt, Variable rate basis description | LIBOR + 2.25% (2.447% at September 30, 2015) | |||
Debt instrument, interest rate at period end (as a percent) | 2.447% | |||
Number of one year extensions | extension | 2 | |||
Duration of extension term (in years) | 1 year | |||
Lexington Hotel New York [Member] | Mortgages [Member] | LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.25% | |||
Marriott Salt Lake City Downtown [Member] | Mortgages [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal balance | $ 60,369 | |||
Interest rate | 4.25% | |||
Hilton Minneapolis [Member] | Mortgages [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal balance | $ 91,231 | |||
Interest rate | 5.464% | |||
Westin Washington, D.C. City Center [Member] | Mortgages [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal balance | $ 69,250 | |||
Interest rate | 3.99% | |||
The Lodge at Sonoma, a Renaissance Resort and Spa [Member] | Mortgages [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal balance | $ 29,679 | |||
Interest rate | 3.96% | |||
Westin San Diego [Member] | Mortgages [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal balance | $ 67,963 | |||
Interest rate | 3.94% | |||
Courtyard Manhattan / Midtown East [Member] | Mortgages [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal balance | $ 86,000 | |||
Interest rate | 4.40% | |||
Renaissance Worthington [Member] | Mortgages [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal balance | $ 85,000 | |||
Interest rate | 3.6625% | 3.66% | ||
JW Marriott Denver at Cherry Creek [Member] | Mortgages [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal balance | $ 65,000 | |||
Interest rate | 4.33% | 4.33% |
Debt - Mortgage Debt (Details)
Debt - Mortgage Debt (Details) | Oct. 27, 2015USD ($) | Jul. 02, 2015USD ($) | Apr. 14, 2015USD ($) | Oct. 09, 2015USD ($) | Sep. 30, 2015Hotel | Jul. 01, 2015USD ($) | May. 11, 2015USD ($) | Apr. 10, 2015USD ($) |
Debt Instrument [Line Items] | ||||||||
Number of hotel properties secured by mortgage debt (in hotels) | Hotel | 12 | |||||||
Number of hotels (in hotels) | Hotel | 29 | |||||||
Mortgages [Member] | Renaissance Worthington [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Mortgage loan amount | $ 85,000,000 | $ 52,600,000 | ||||||
Fixed rate percentage | 3.66% | 3.6625% | ||||||
Interest only period (in years) | 2 years | |||||||
Amortization period (in years) | 30 years | |||||||
Mortgages [Member] | Frenchman's Reef and Morning Star Marriott Beach [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Mortgage loan amount | $ 56,200,000 | |||||||
Fixed rate percentage | 5.44% | |||||||
Mortgages [Member] | JW Marriott Denver at Cherry Creek [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Mortgage loan amount | $ 65,000,000 | $ 38,100,000 | ||||||
Fixed rate percentage | 4.33% | 4.33% | ||||||
Amortization period (in years) | 30 years | |||||||
Mortgages [Member] | Orlando Airport Marriott [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Fixed rate percentage | 5.68% | |||||||
Subsequent Event [Member] | Mortgages [Member] | Orlando Airport Marriott [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Mortgage loan amount | $ 55,300,000 | |||||||
Fixed rate percentage | 5.68% | |||||||
Subsequent Event [Member] | Mortgages [Member] | Westin Boston Waterfront Hotel [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Mortgage loan amount | $ 205,000,000 | |||||||
Fixed rate percentage | 4.36% | |||||||
Amortization period (in years) | 30 years |
Debt - Senior Unsecured Credit
Debt - Senior Unsecured Credit Facility (Details) | Oct. 01, 2015USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)Hotel | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) |
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 200,000,000 | $ 200,000,000 | ||||
Increase in Credit Facility | 400,000,000 | $ 400,000,000 | ||||
Net proceeds from future equity issuances (as a percent) | 75.00% | |||||
Minimum number of unencumbered borrowing base (in properties) | Hotel | 5 | |||||
Unencumbered borrowing base | $ 250,000,000 | |||||
Number of unencumbered borrowing base properties | Hotel | 5 | |||||
Unencumbered borrowing base value | $ 319,000,000 | |||||
Senior unsecured credit facility | 25,000,000 | 25,000,000 | $ 0 | |||
Repayment of borrowings outstanding under credit facility | 110,000,000 | $ 41,320,000 | ||||
Line of Credit [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Senior unsecured credit facility | 25,000,000 | $ 25,000,000 | ||||
Ratio of indebtedness | 3.55 | |||||
Interest and unused credit facility fees | $ 400,000 | $ 200,000 | $ 800,000 | $ 600,000 | ||
Line of Credit [Member] | LIBOR [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 1.75% | |||||
Orlando Airport Marriott [Member] | Line of Credit [Member] | Subsequent Event [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Increase in Credit Facility | $ 60,000,000 | |||||
Westin Boston Waterfront Hotel [Member] | Mortgages [Member] | Subsequent Event [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Repayment of borrowings outstanding under credit facility | $ 85,000,000 |
Debt - Schedule of Ratio of Net
Debt - Schedule of Ratio of Net Indebtedness (Details) | 9 Months Ended |
Sep. 30, 2015 | |
Line Of Credit Facility Leverage Range [Line Items] | |
Percent of unused portion line of credit facility triggering lower commitment fee (as a percent) | 50.00% |
Less than 4.00 to 1.00 [Member] | |
Summary of leverage and applicable margin | |
Line of credit facility leverage rate description | Less than 4.00 to 1.00 |
Line of credit facility applicable margin rate | 1.75% |
Greater than or equal to 4.00 to 1.00 but less than 5.00 to 1.00 [Member] | |
Summary of leverage and applicable margin | |
Line of credit facility leverage rate description | Greater than or equal to 4.00 to 1.00 but less than 5.00 to 1.00 |
Line of credit facility applicable margin rate | 1.90% |
Greater than or equal to 5.00 to 1.00 but less than 5.50 to 1.00 [Member] | |
Summary of leverage and applicable margin | |
Line of credit facility leverage rate description | Greater than or equal to 5.00 to 1.00 but less than 5.50 to 1.00 |
Line of credit facility applicable margin rate | 2.10% |
Greater than or equal to 5.50 to 1.00 but less than 6.00 to 1.00 [Member] | |
Summary of leverage and applicable margin | |
Line of credit facility leverage rate description | Greater than or equal to 5.50 to 1.00 but less than 6.00 to 1.00 |
Line of credit facility applicable margin rate | 2.20% |
Greater than or equal to 6.00 to 1.00 but less than 6.50 to 1.00 [Member] | |
Summary of leverage and applicable margin | |
Line of credit facility leverage rate description | Greater than or equal to 6.00 to 1.00 but less than 6.50 to 1.00 |
Line of credit facility applicable margin rate | 2.50% |
Greater than or equal to 6.50 to 1.00 [Member] | |
Summary of leverage and applicable margin | |
Line of credit facility leverage rate description | Greater than or equal to 6.50 to 1.00 |
Line of credit facility applicable margin rate | 2.75% |
Minimum [Member] | |
Line Of Credit Facility Leverage Range [Line Items] | |
Line of credit facility, unused capacity, commitment fee (as a percent) | 0.35% |
Minimum [Member] | Greater than or equal to 4.00 to 1.00 but less than 5.00 to 1.00 [Member] | |
Summary of leverage and applicable margin | |
Ratio of net indebtedness to EBITDA (as a percent) | 4 |
Minimum [Member] | Greater than or equal to 5.00 to 1.00 but less than 5.50 to 1.00 [Member] | |
Summary of leverage and applicable margin | |
Ratio of net indebtedness to EBITDA (as a percent) | 5 |
Minimum [Member] | Greater than or equal to 5.50 to 1.00 but less than 6.00 to 1.00 [Member] | |
Summary of leverage and applicable margin | |
Ratio of net indebtedness to EBITDA (as a percent) | 5.50 |
Minimum [Member] | Greater than or equal to 6.00 to 1.00 but less than 6.50 to 1.00 [Member] | |
Summary of leverage and applicable margin | |
Ratio of net indebtedness to EBITDA (as a percent) | 6 |
Minimum [Member] | Greater than or equal to 6.50 to 1.00 [Member] | |
Summary of leverage and applicable margin | |
Ratio of net indebtedness to EBITDA (as a percent) | 6.50 |
Maximum [Member] | |
Line Of Credit Facility Leverage Range [Line Items] | |
Line of credit facility, unused capacity, commitment fee (as a percent) | 0.25% |
Maximum [Member] | Less than 4.00 to 1.00 [Member] | |
Summary of leverage and applicable margin | |
Ratio of net indebtedness to EBITDA (as a percent) | 4 |
Maximum [Member] | Greater than or equal to 4.00 to 1.00 but less than 5.00 to 1.00 [Member] | |
Summary of leverage and applicable margin | |
Ratio of net indebtedness to EBITDA (as a percent) | 5 |
Maximum [Member] | Greater than or equal to 5.00 to 1.00 but less than 5.50 to 1.00 [Member] | |
Summary of leverage and applicable margin | |
Ratio of net indebtedness to EBITDA (as a percent) | 5.50 |
Maximum [Member] | Greater than or equal to 5.50 to 1.00 but less than 6.00 to 1.00 [Member] | |
Summary of leverage and applicable margin | |
Ratio of net indebtedness to EBITDA (as a percent) | 6 |
Maximum [Member] | Greater than or equal to 6.00 to 1.00 but less than 6.50 to 1.00 [Member] | |
Summary of leverage and applicable margin | |
Ratio of net indebtedness to EBITDA (as a percent) | 6.50 |
Debt - Schedule of Debt Covenan
Debt - Schedule of Debt Covenants (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Line Of Credit Facility Covenant [Member] | |
Line of Credit Facility [Line Items] | |
Maximum Leverage Ratio (as a percent) | 0.60 |
Minimum fixed charge coverage ratio | 1.50 |
Minimum tangible net worth | $ 1,910 |
Secured recourse indebtedness ratio | 45.00% |
Line Of Credit Facility Covenant Actual Results [Member] | |
Line of Credit Facility [Line Items] | |
Maximum Leverage Ratio (as a percent) | 0.329 |
Minimum fixed charge coverage ratio | 3.5 |
Minimum tangible net worth | $ 2,520 |
Secured recourse indebtedness ratio | 32.10% |
Acquisitions - Allocation of Fa
Acquisitions - Allocation of Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Feb. 06, 2015 |
Shorebreak Hotel [Member] | ||
Business Acquisition [Line Items] | ||
Land | $ 19,908 | |
Building and improvements | 37,525 | |
Furnitures, fixtures and equipment | 1,338 | |
Total fixed assets | 58,771 | |
Unfavorable lease liability | (349) | |
Other assets and liabilities, net | 401 | |
Total | $ 58,823 | |
Sheraton Suites Key West [Member] | ||
Business Acquisition [Line Items] | ||
Land | $ 49,592 | |
Building and improvements | 43,030 | |
Furnitures, fixtures and equipment | 1,378 | |
Total fixed assets | 94,000 | |
Unfavorable lease liability | 0 | |
Other assets and liabilities, net | 428 | |
Total | $ 94,428 |
Acquisitions - Pro Forma Inform
Acquisitions - Pro Forma Information (Details) - Inn at Key West [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Business Acquisition [Line Items] | ||||
Revenues | $ 238,502 | $ 245,358 | $ 708,750 | $ 711,481 |
Net income | $ 24,464 | $ 44,624 | $ 63,481 | $ 110,724 |
Earnings per share: | ||||
Basic earnings per share (in dollars per share) | $ 0.12 | $ 0.23 | $ 0.32 | $ 0.57 |
Diluted earnings per share (in dollars per share) | $ 0.12 | $ 0.23 | $ 0.32 | $ 0.56 |
Acquisitions (Details)
Acquisitions (Details) | Jun. 30, 2015USD ($)suite | Feb. 06, 2015USD ($)room | Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($) |
Shorebreak Hotel [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of rooms acquired (in rooms) | room | 157 | |||
Purchase price | $ 58,500,000 | |||
Incentive management fee percentage for gross revenues | 15.00% | |||
Percentage used to calculate leasehold purchase option | 10.00% | |||
Unfavorable lease liability | $ 349,000 | |||
Sheraton Suites Key West [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of rooms acquired (in rooms) | suite | 184 | |||
Purchase price | $ 94,000,000 | |||
Unfavorable lease liability | $ 0 | |||
Shorebreak Hotel and Sheraton Suites Key West [Member] | ||||
Business Acquisition [Line Items] | ||||
Revenue related to acquisitions | $ 7,900,000 | $ 13,700,000 | ||
Net income related to acquisitions | $ 2,300,000 | $ 3,000,000 | ||
Land Underlying the Hotel and Lease [Member] | Shorebreak Hotel [Member] | ||||
Business Acquisition [Line Items] | ||||
Percentage of undivided interest ownership | 95.50% | |||
Long-Term Ground Lease [Member] | Shorebreak Hotel [Member] | ||||
Business Acquisition [Line Items] | ||||
Percentage of undivided interest ownership | 4.50% | |||
Kimpton Hotels [Member] | Shorebreak Hotel [Member] | ||||
Business Acquisition [Line Items] | ||||
Management agreement | 10 years | |||
Base management fee percentage of gross revenues | 1.25% | |||
Gross revenues percentage | 2.50% | |||
Ocean Properties [Member] | Sheraton Suites Key West [Member] | ||||
Business Acquisition [Line Items] | ||||
Base management fee percentage of gross revenues | 3.00% | |||
Incentive management fee percentage for gross revenues | 10.00% |
Fair Value of Financial Instr44
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | $ 1,056,198 | $ 1,038,330 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | $ 1,058,655 | $ 1,059,988 |
Commitments and Contingencies -
Commitments and Contingencies - Income Taxes (Details) - U.S. Virgin Island [Member] - Foreign Tax Authority [Member] | Oct. 01, 2015 | Sep. 30, 2015 |
Income Tax Contingency [Line Items] | ||
Income tax agreement rate | 7.00% | |
Statutory tax rate | 37.40% | |
Subsequent Event [Member] | ||
Income Tax Contingency [Line Items] | ||
Income tax agreement, extension of term | 15 years |