DiamondRock Hospitality (DRH) 10-Q 6 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 06, 2018
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, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		207,920,844
Entity Small Business	false
Entity Emerging Growth Company	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
ASSETS
Property and equipment, net	$ 2,802,889	$ 2,692,286
Restricted cash	42,624	40,204
Due from hotel managers	100,613	86,621
Favorable lease assets, net	46,216	26,690
Prepaid and other assets	16,330	71,488
Cash and cash equivalents	169,654	183,569
Total assets	3,178,326	3,100,858
Liabilities:
Mortgage and other debt, net of unamortized debt issuance costs	633,139	639,639
Term loans, net of unamortized debt issuance costs	298,498	298,153
Total debt	931,637	937,792
Deferred income related to key money, net	11,838	14,307
Unfavorable contract liabilities, net	73,977	70,734
Deferred ground rent	91,957	86,614
Due to hotel managers	64,879	74,213
Dividends declared and unpaid	26,648	25,708
Accounts payable and accrued expenses	61,177	57,845
Total liabilities	1,262,113	1,267,213
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; 207,840,943 and 200,306,733 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively	2,078	2,003
Additional paid-in capital	2,157,968	2,061,451
Accumulated deficit	(243,833)	(229,809)
Total stockholders’ equity	1,916,213	1,833,645
Total liabilities and stockholders’ equity	$ 3,178,326	$ 3,100,858

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2018	Dec. 31, 2017
Stockholders' Equity:
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	400,000,000	400,000,000
Common stock, shares issued (in shares)	207,840,943	200,306,733
Common stock, shares outstanding (in shares)	207,840,943	200,306,733

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues:
Total revenues	$ 220,818	$ 223,486	$ 640,297	$ 662,968
Operating Expenses:
Depreciation and amortization	26,369	25,083	77,304	75,031
Impairment losses	0	2,357	0	2,357
Hotel acquisition costs	0	(245)	0	2,028
Corporate expenses	4,521	6,109	22,139	19,199
Business interruption insurance income	(8,227)	0	(16,254)	0
Gain on property insurance settlement	(1,730)	0	(1,730)	0
Total operating expenses, net	176,589	189,168	544,612	558,703
Operating profit	44,229	34,318	95,685	104,265
Interest and other income, net	(621)	(372)	(1,428)	(923)
Interest expense	10,233	9,692	30,384	28,790
Loss on early extinguishment of debt	0	0	0	274
Total other expenses, net	9,612	9,320	28,956	28,141
Income before income taxes	34,617	24,998	66,729	76,124
Income tax expense	(3,174)	(3,375)	(2,939)	(9,019)
Net income	$ 31,443	$ 21,623	$ 63,790	$ 67,105
Earnings per share:
Basic earnings per share (in dollars per share)	$ 0.15	$ 0.11	$ 0.31	$ 0.33
Diluted earnings per share (in dollars per share)	$ 0.15	$ 0.11	$ 0.31	$ 0.33
Rooms
Revenues:
Total revenues	$ 165,750	$ 167,990	$ 469,786	$ 483,305
Operating Expenses:
Operating expenses	41,779	41,945	117,972	120,411
Food and beverage
Revenues:
Total revenues	42,922	42,651	135,286	140,191
Operating Expenses:
Operating expenses	29,047	30,794	88,202	93,324
Management fees
Operating Expenses:
Operating expenses	6,099	5,356	15,542	18,317
Other
Revenues:
Total revenues	12,146	12,845	35,225	39,472
Operating Expenses:
Operating expenses	$ 78,731	$ 77,769	$ 241,437	$ 228,036

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net income	$ 63,790	$ 67,105
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	77,304	75,031
Corporate asset depreciation as corporate expenses	161	56
Loss on early extinguishment of debt	0	274
Non-cash ground rent	5,316	4,756
Amortization of debt issuance costs	1,384	1,489
Impairment losses	0	42,264
Estimated recovery of impairment losses from insurance	0	(39,907)
Amortization of favorable and unfavorable contracts, net	(1,474)	(1,434)
Amortization of deferred income related to key money	(2,469)	(3,040)
Stock-based compensation	4,104	4,769
Changes in assets and liabilities:
Prepaid expenses and other assets	25,489	(560)
Due to/from hotel managers	(21,436)	(11,369)
Accounts payable and accrued expenses	(2,215)	7,975
Net cash provided by operating activities	149,954	147,409
Cash flows from investing activities:
Hotel capital expenditures	(76,753)	(76,821)
Hotel acquisitions	(119,537)	(93,795)
Purchase deposits	(2,000)	0
Proceeds from property insurance	30,742	0
Net used in investing activities	(167,548)	(170,616)
Cash flows from financing activities:
Scheduled mortgage debt principal payments	(9,947)	(9,094)
Proceeds from sale of common stock, net	92,715	0
Repayments of mortgage debt	0	(170,368)
Proceeds from senior unsecured term loan	0	200,000
Draws on senior unsecured credit facility	85,000	0
Repayments of senior unsecured credit facility	(85,000)	0
Payment of financing costs	0	(1,579)
Payment of cash dividends	(76,520)	(75,451)
Repurchase of common stock	(149)	(529)
Net cash provided by (used in) financing activities	6,099	(57,021)
Net decrease in cash, cash equivalents, and restricted cash	(11,495)	(80,228)
Cash, cash equivalents, and restricted cash at beginning of period	223,773	289,164
Cash, cash equivalents, and restricted cash at end of period	212,278	208,936
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest	28,462	27,183
Cash paid for income taxes	2,198	2,688
Non-cash Investing and Financing Activities:
Loan assumed in hotel acquisition	2,943	0
Total cash, cash equivalents, and restricted cash	$ 223,773	$ 289,164

Organization

Organization	9 Months Ended
	Sep. 30, 2018
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. or Hilton Worldwide). 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, 2018 , we owned 30 hotels with 9,949 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, Florida; Fort Worth, Texas; Huntington Beach, California; Key West, Florida ( 2 ); New York, New York ( 4 ); Phoenix, Arizona; Salt Lake City, Utah; San Diego, California; San Francisco, California; Sedona, Arizona ( 2 ); Sonoma, California; South Lake Tahoe, California; Washington D.C. ( 2 ); St. Thomas, U.S. Virgin Islands; and Vail, Colorado. As of September 30, 2018 , the Frenchman's Reef & Morning Star Marriott Beach Resort (“Frenchman's Reef”) is closed as a result of damage incurred from Hurricanes Irma and Maria in September 2017. 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 (the “Operating Partnership”), or subsidiaries of the Operating Partnership. The Company is the sole general partner of the Operating Partnership and currently owns, either directly or indirectly, all of the limited partnership units of the Operating Partnership.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2018
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, 2017 , included in our Annual Report on Form 10-K filed on February 27, 2018 . In our opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments necessary to present fairly our financial position as of September 30, 2018 , the results of our operations for the three and nine months ended September 30, 2018 and 2017 , and the cash flows for the nine months ended September 30, 2018 and 2017 . 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 Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, Consolidation , the Company will consolidate the entity when it is determined to be the primary beneficiary of the entity. The Operating Partnership meets the criteria of a variable interest entity. The Company is the primary beneficiary and, accordingly, we consolidate the Operating Partnership. 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. Property and Equipment Following the adoption of Accounting Standards Update (“ASU”) No. 2017-01, investments in hotel properties, land, land improvements, building and furniture, fixtures and equipment and identifiable intangible assets are generally accounted for as asset acquisitions and recorded at relative fair value based upon total accumulated cost of the acquisition. Direct acquisition-related costs are capitalized as a component of the acquired assets. 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 are 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 5 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 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 Revenues from operations of the hotels are recognized when the goods or services are provided, and thereby the performance obligations are satisfied. Revenues consist of room sales, food and beverage sales, and other hotel department revenues, such as telephone, parking, gift shop sales and resort fees. Room revenue is generated through contracts with customers whereby the customer agrees to pay a daily rate for the right to use a hotel room. Our contract performance obligations are fulfilled at the end of the day that the customer is provided the room and revenue is recognized daily at the contract rate. Food and beverage revenue is generated through contracts with customers whereby the customer agrees to pay a contract rate for restaurant dining services or banquet services. Our contract performance obligations are fulfilled at the time that the food and beverage is provided to the customer or when the banquet facilities and related dining amenities are provided to the customer. We recognize food and beverage revenue upon the fulfillment of the contract with the customer. Other revenues are recognized at the point in time or over the time period that goods or services are provided to the customer. Certain ancillary services are provided by third parties and we assess whether we are the principal or agent in these arrangements. If we are the agent, revenue is recognized based upon the commission earned from the third party. If we are the principal, we recognize revenue based upon the gross sales price. Certain of our hotels have retail spaces, restaurants or other spaces which we lease to third parties. Lease revenue is recognized on a straight-line basis over the life of the lease and included in other operating revenues in our condensed consolidated statements of operations. Hotel operating revenues are disaggregated on the face of the condensed consolidated statements of operations into the categories of room revenue, food and beverage revenue, and other revenue to demonstrate how economic factors affect the nature, amount, timing, and uncertainty of revenue and cash flows. The following table provides information about trade receivables and contract liabilities (in thousands): September 30, 2018 December 31, 2017 Trade receivables (1) $ 46,455 $ 32,316 Advance deposits as deferred revenue (2) 14,104 14,754 ______________________ (1) Included within due from hotel managers on the accompanying condensed consolidated balance sheets. (2) Included within due to hotel managers on the accompanying condensed consolidated balance sheets. Advance deposits are provided when a customer or group of customers provides a deposit for a future stay or banquet event at our hotels. Advance deposits are converted to revenue when the services are provided to the customer or when a customer with a noncancelable reservation fails to arrive for part or all of the reservation. Conversely, advance deposits are generally refundable upon guest cancelation of the related reservation within an established period of time prior to the reservation. 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 awards with service or market conditions 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. However, deferred tax assets are recognized only to the extent that it is more likely than not that they will be realized based on consideration of all available evidence, including the future reversals of existing taxable temporary differences, future projected taxable income and tax planning strategies. Valuation allowances are provided if, based upon the weight of the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. 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 primary 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, 2018 and December 31, 2017 . 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 observability 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. Accounting for Impact of Natural Disasters Assets destroyed or damaged as a result of natural disasters or other involuntary events are written off or reduced in carrying value to their salvage value. When recovery of all or a portion of the amount of property damage loss or other covered expenses through insurance proceeds is demonstrated to be probable, a receivable is recorded and offsets the loss or expense up to the amount of the total loss or expense. No gain is recorded until all contingencies related to the insurance claim have been resolved. Income resulting from business interruption insurance is not recognized until all contingencies related to the insurance recoveries are resolved. In September 2017, Hurricanes Irma and Maria caused significant damage to Frenchman's Reef and the Havana Cabana Key West. We are pursuing an insurance claim for the remediation of property damage and business interruption at Frenchman's Reef. During the third quarter of 2018, we settled an insurance claim for the remediation of property damage and business interruption at the Havana Cabana Key West for $8.3 million , net of deductibles. We received $32.5 million and $85.0 million of insurance proceeds under these hurricane claims during the three and nine months ended September 30, 2018 , respectively. Additionally, during the third quarter of 2018, we settled an insurance claim for smoke damage and business interruption at The Lodge at Sonoma related to the 2017 wildfires in Northern California for $1.3 million , net of deductibles. For the three months ended September 30, 2018 , we recognized $8.2 million in business interruption insurance income on our accompanying condensed consolidated statement of operations. For the nine months ended September 30, 2018 , we recognized $16.3 million of business interruption insurance income on our accompanying condensed consolidated statement of operations, which is net of $2.9 million of expense reimbursements from insurance recorded within other hotel expenses on our accompanying condensed consolidated statement of operations. The following table summarizes the business interruption insurance income by impacted hotel property (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Frenchman's Reef $ 5,680 $ — $ 12,965 $ — Havana Cabana Key West 1,925 — 2,137 — The Lodge at Sonoma 622 — 1,152 — Total $ 8,227 $ — $ 16,254 $ — For both the three and nine months ended September 30, 2018 , we recognized a $1.7 million gain related to the settlement of the property damage insurance claim at the Havana Cabana Key West. Recently Issued Accounting Pronouncements In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business , which clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions of assets or business combinations. As a result of the standard, we anticipate that the majority of our hotel acquisitions will be considered asset purchases as opposed to business combinations. However, the determination will be made on a transaction-by-transaction basis and we do not expect the determination to materially change the recognition of the assets and liabilities acquired. This standard is effective for annual periods beginning after December 15, 2017. We adopted ASU No. 2017-01 effective January 1, 2018. This standard will be applied on a prospective basis and, therefore, it does not affect the accounting for any of our transactions prior to January 1, 2018. Refer to Note 9 for more information about our two hotel property acquisitions during the nine months ended September 30, 2018 , which were both asset purchases. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , which requires that the statement of cash flows explain the change during the period in the total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. This standard is effective for annual periods beginning after December 15, 2017. We adopted ASU No. 2016-18 effective January 1, 2018. The adoption of ASU No. 2016-18 changed the presentation of the statement of cash flows for the Company and we utilized a retrospective transition method for each period presented within financial statements for periods subsequent to the date of adoption. Restricted cash reserves are included with cash and cash equivalents on our consolidated statements of cash flows for all periods presented. There was no impact to the condensed consolidated statements of income or the condensed consolidated balance sheets. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which clarifies and provides specific guidance on eight cash flow classification issues with an objective to reduce the current diversity in practice. This standard is effective for annual periods beginning after December 15, 2017. We adopted ASU No. 2016-15 effective January 1, 2018 and it did not have an impact on our consolidated financial statements. 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 adopted the new standard effective January 1, 2018 under the cumulative effect transition method. No adjustment was recorded to the Company’s opening balance of retained earnings on January 1, 2018 as there was no impact to net income for the Company. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which primarily changes the lessee's accounting for operating leases by requiring recognition of lease right-of-use assets and lease liabilities. This standard is effective for annual reporting periods beginning after December 15, 2018, with early adoption permitted. The primary impact of the new standard will be to the treatment of our ground leases, which represent a majority of all of our operating lease payments. We are continuing to evaluate the effect of ASU 2016-02 on our consolidated financial statements and related disclosures.

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 30, 2018
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment Property and equipment as of September 30, 2018 and December 31, 2017 consists of the following (in thousands): September 30, 2018 December 31, 2017 Land $ 617,695 $ 602,879 Land improvements 7,994 7,994 Buildings and site improvements 2,555,547 2,414,216 Furniture, fixtures and equipment 469,141 423,987 Construction in progress 18,673 31,906 3,669,050 3,480,982 Less: accumulated depreciation (866,161 ) (788,696 ) $ 2,802,889 $ 2,692,286 As of September 30, 2018 and December 31, 2017 , we had accrued capital expenditures of $17.8 million and $11.7 million , respectively.

Favorable Lease Assets

Favorable Lease Assets	9 Months Ended
	Sep. 30, 2018
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 leases. Our favorable lease assets, net of accumulated amortization of $3.2 million and $2.7 million as of September 30, 2018 and December 31, 2017 , respectively, consist of the following (in thousands): September 30, 2018 December 31, 2017 Westin Boston Waterfront Hotel Ground Lease $ 17,480 $ 17,643 Hotel Palomar Phoenix Ground Lease 19,838 — Orchards Inn Sedona Annex Sublease 8,799 8,925 Lexington Hotel New York Tenant Leases 99 122 $ 46,216 $ 26,690 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. We recorded $0.2 million and $0.1 million of amortization expense, respectively, for the three months ended September 30, 2018 and 2017 . We recorded $0.5 million and $0.3 million of amortization expense, respectively, for the nine months ended September 30, 2018 and 2017 . In connection with our acquisition of the Hotel Palomar Phoenix on March 1, 2018, we recorded a $20.0 million favorable lease asset. We determined the value using a discounted cash flow of the favorable difference between the contractual lease payments and estimated market rents. The market rents were estimated with the assistance of a third-party valuation firm and the discount rate was estimated using a risk adjusted rate of return. See Note 9 for further discussion of this favorable lease asset.

Capital Stock

Capital Stock	9 Months Ended
	Sep. 30, 2018
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 “Current 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 . Prior to the implementation of the Current ATM Program, the Company had a $200 million ATM program (the “Prior ATM Program”), which is no longer active. During the nine months ended September 30, 2018, we sold 7,472,946 shares of common stock at an average price of $12.56 for net proceeds of $92.9 million under the Prior ATM Program. We did not sell any shares of common stock during the three months ended September 30, 2018 , and the full amount remains available under the Current ATM Program. Our board of directors has approved a share repurchase program authorizing us to repurchase up to $150 million in shares of our common stock. Repurchases under this program are 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 depends 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. On November 2, 2018, our board of directors increased the authorization under the share repurchase program from $150 million to $250 million . We have not repurchased any shares of our common stock during 2018 and we have full capacity remaining under our share repurchase program. Dividends We have paid the following dividends to holders of our common stock during 2018 as follows: Payment Date Record Date Dividend per Share January 12, 2018 December 29, 2017 $ 0.125 April 12, 2018 March 29, 2018 $ 0.125 July 12, 2018 June 29, 2018 $ 0.125 October 12, 2018 September 28, 2018 $ 0.125 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, 2018 and December 31, 2017 , 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 the 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 these 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, 2018 and December 31, 2017 , there were no Operating Partnership units held by unaffiliated third parties. On September 6, 2018, we entered into a contribution agreement with the Operating Partnership and an unrelated third party (the "Contributor") under which the Contributor agreed to contribute its interest in a resort hotel in California to the Operating Partnership in exchange for approximately $150 million in a combination of cash and newly issued common limited partnership interests in the Operating Partnership (“OP units”) at an agreed-upon value. The Contributor has elected to receive a maximum of approximately 1.2 million OP units at $11.76 per unit and the remaining amount in cash. The transaction is expected to close in the fourth quarter of 2018, following the satisfaction of closing conditions. Upon closing, the Contributor's OP units will create a noncontrolling interest in the Operating Partnership. We will remain the sole general partner of the Operating Partnership.

Stock Incentive Plans

Stock Incentive Plans	9 Months Ended
	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Incentive Plans	Stock Incentive Plans We are authorized to issue up to 6,082,664 shares of our common stock under our 2016 Equity Incentive Plan (the "2016 Plan"), of which we have issued or committed to issue 846,517 shares as of September 30, 2018 . 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. The 2016 Plan replaced the 2004 Stock Option and Incentive Plan, as amended (the "2004 Plan"). We no longer make share grants and issuances under the 2004 Plan, although awards previously made under the 2004 Plan that are outstanding will remain in effect in accordance with the terms of that plan and the applicable award agreements. Restricted Stock Awards Restricted stock awards issued to our officers and employees generally vest over a three -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, 2018 to September 30, 2018 is as follows: Number of Shares Weighted- Average Grant Date Fair Value Unvested balance at January 1, 2018 630,962 $ 10.66 Granted 349,091 10.19 Vested (287,148 ) 11.02 Forfeited (51,061 ) 10.44 Unvested balance at September 30, 2018 641,844 $ 10.25 The remaining share awards are expected to vest as follows: 310,117 shares during 2019 , 215,368 shares during 2020 , and 116,359 during 2021. As of September 30, 2018 , the unrecognized compensation cost related to restricted stock awards was $4.8 million and the weighted-average period over which the unrecognized compensation expense will be recorded is approximately 23 months. We recorded $0.2 million and $0.8 million of compensation expense related to restricted stock awards for the three months ended September 30, 2018 and 2017 , respectively. We recorded $2.3 million of compensation expense related to restricted stock awards for each of the nine months ended September 30, 2018 and 2017 . In the first quarter of 2018, we recorded $0.6 million of compensation expense related to the accelerated vesting of awards in connection with the departure of our former Chief Financial Officer. In the third quarter of 2018, we entered into a settlement agreement with our former Chief Financial Officer, in which he forfeited certain of his equity awards. Accordingly, in the third quarter of 2018 we reversed $0.5 million of compensation expense previously recorded in the first quarter of 2018. 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”). For the PSUs issued in 2015 and vesting in 2018, 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. For the PSUs issued in 2016 and vesting in 2019, the calculation of total stockholder return relative to the total stockholder return of a peer group over a three -year performance period remained in effect for 75% of the number of PSUs to be earned in the performance period. The remaining 25% is determined based on achieving improvement in market share for each of our hotels over the three -year performance period based on a report prepared for each hotel by STR Global, a well-recognized and universally accepted benchmarking service for the hospitality industry. For the PSUs issued in 2017 and 2018 and vesting in 2020 and 2021, respectively, the calculation of total stockholder return relative to the total stockholder return of a peer group over a three -year performance period applies to 50% of the number of PSUs to be earned in the performance period. The remaining 50% is determined based on achieving improvement in market share for each of our hotels over the three -year performance period. We measure compensation expense for the PSUs based upon the fair market value of the award at the grant date. Compensation expense is recognized on a straight-line basis over the three -year performance period and is included in corporate expenses in the accompanying condensed consolidated statements of operations. The grant date fair value of the portion of the PSUs based on our relative total stockholder return is determined using a Monte Carlo simulation performed by a third-party valuation firm. The grant date fair value of the portion of the PSUs based on improvement in market share for each of our hotels is the closing price of our common stock on the grant date. On March 2, 2018, our board of directors granted 264,509 PSUs to our executive officers. The grant date fair value of the portion of the PSUs based on our relative total stockholder return was $9.52 using the assumptions of volatility of 26.9% and a risk-free rate of 2.40% . The grant date fair value of the portion of the PSUs based on hotel market share was $10.18 , the closing stock price of our common stock on such date. On April 2, 2018, our board of directors granted 28,602 PSUs to our new Chief Financial Officer. The grant date fair value of the portion of the PSUs based on our relative total stockholder return was $9.00 using the assumptions of volatility of 26.9% and a risk-free rate of 2.37% . The grant date fair value of the portion of the PSUs based on hotel market share was $10.32 , the closing stock price of our common stock on such date. A summary of our PSUs from January 1, 2018 to September 30, 2018 is as follows: Number of Target Units Weighted- Average Grant Date Fair Value Unvested balance at January 1, 2018 785,797 $ 10.42 Granted 293,111 9.82 Additional units from dividends 26,068 11.13 Vested (1) (218,514 ) 11.98 Forfeited (113,668 ) 9.86 Unvested balance at September 30, 2018 772,794 $ 11.18 ______________________ (1) The number of shares of common stock earned for the PSUs vested in 2018 was equal to 51.75% of the PSU Target Award. The remaining target units are expected to vest as follows: 245,055 units during 2019 , 228,521 units during 2020 and 299,218 units during 2021 . The number of shares earned upon vesting is subject to the attainment of the performance goals described above. As of September 30, 2018 , the unrecognized compensation cost related to the PSUs was $3.7 million and is expected to be recognized on a straight-line basis over a weighted average period of 24 months. We recorded a net $0.4 million reversal of compensation expense related to the PSUs for the three months ended September 30, 2018 , due primarily to a reversal of $1.0 million of previously recorded compensation expense related to the forfeiture of PSU awards of our former Chief Financial Officer. We recorded $0.6 million of compensation expense related to the PSUs for the three months ended September 30, 2017 . We recorded $1.3 million and $1.8 million , respectively, of compensation expense related to the PSUs for the nine months ended September 30, 2018 and 2017 . The compensation expense for the nine months ended September 30, 2018 includes a net reversal of $0.4 million of compensation expense due to the forfeiture of our former Chief Financial Officer's PSUs.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2018
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, 2018 2017 2018 2017 Numerator: Net income $ 31,443 $ 21,623 $ 63,790 $ 67,105 Denominator: Weighted-average number of common shares outstanding—basic 208,758,945 200,834,910 204,520,637 200,767,104 Effect of dilutive securities: Unvested restricted common stock 221,018 173,557 212,051 170,612 Shares related to unvested PSUs 617,074 415,933 617,074 415,933 Weighted-average number of common shares outstanding—diluted 209,597,037 201,424,400 205,349,762 201,353,649 Earnings per share: Basic earnings per share $ 0.15 $ 0.11 $ 0.31 $ 0.33 Diluted earnings per share $ 0.15 $ 0.11 $ 0.31 $ 0.33

Debt

Debt	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
Debt	Debt The following table sets forth information regarding the Company’s debt as of September 30, 2018 and December 31, 2017 (dollars in thousands): Principal Balance as of Loan Interest Rate Maturity Date September 30, 2018 December 31, 2017 Salt Lake City Marriott Downtown mortgage loan 4.25% November 2020 $ 55,600 $ 56,717 Westin Washington D.C. City Center mortgage loan 3.99% January 2023 63,269 64,833 The Lodge at Sonoma, a Renaissance Resort & Spa mortgage loan 3.96% April 2023 27,849 28,277 Westin San Diego mortgage loan 3.94% April 2023 63,761 64,859 Courtyard Manhattan / Midtown East mortgage loan 4.40% August 2024 82,990 84,067 Renaissance Worthington mortgage loan 3.66% May 2025 82,941 84,116 JW Marriott Denver at Cherry Creek mortgage loan 4.33% July 2025 62,694 63,519 Boston Westin mortgage loan 4.36% November 2025 195,382 198,046 New Market Tax Credit loan (1) 5.17% December 2020 2,943 — Unamortized debt issuance costs (4,290 ) (4,795 ) Total mortgage and other debt, net of unamortized debt issuance costs 633,139 639,639 Unsecured term loan LIBOR + 1.45% (2) May 2021 100,000 100,000 Unsecured term loan LIBOR + 1.45% (2) April 2022 200,000 200,000 Unamortized debt issuance costs (1,502 ) (1,847 ) Unsecured term loan, net of unamortized debt issuance costs 298,498 298,153 Senior unsecured credit facility LIBOR + 1.50% May 2020 (3) — — Total debt, net of unamortized debt issuance costs $ 931,637 $ 937,792 Weighted-Average Interest Rate 4.03% _______________________ (1) Assumed in connection with the acquisition of the Hotel Palomar Phoenix in March 2018. (2) The interest rate at September 30, 2018 was 3.55% . (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 and Other 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, 2018 , eight of our 30 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, 2018 , we were in compliance with the financial covenants of our mortgage debt. On March 1, 2018, in connection with our acquisition of the Hotel Palomar in Phoenix, Arizona, we assumed a $2.9 million loan originated under a qualified New Market Tax Credit program. The loan is interest-only and bears an annual fixed interest rate equal to 5.17% . The loan matures on December 6, 2020. Senior Unsecured Credit Facility We are party to a senior unsecured credit facility with a capacity up to $300 million . The maturity date is May 2020 and may be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions. The facility also includes an accordion feature to expand up to $600 million , subject to lender consent. The interest rate on the facility is based upon LIBOR, plus an applicable margin based upon the Company’s leverage ratio, as follows: Leverage Ratio Applicable Margin Less than or equal to 35% 1.50 % Greater than 35% but less than or equal to 45% 1.65 % Greater than 45% but less than or equal to 50% 1.80 % Greater than 50% but less than or equal to 55% 2.00 % Greater than 55% 2.25 % In addition to the interest payable on amounts outstanding under the facility, we were required to pay an amount equal to 0.20% of the unused portion of the facility if the average usage of the facility was greater than 50% or 0.30% of the unused portion of the facility if the average usage of the facility was less than or equal to 50% . The facility also contains various corporate financial covenants. A summary of the most restrictive covenants is as follows: Actual at Covenant September 30, 2018 Maximum leverage ratio (1) 60% 23.8% Minimum fixed charge coverage ratio (2) 1.50x 4.25x Minimum tangible net worth (3) $1.98 billion $2.74 billion Secured recourse indebtedness Less than 45% of Total Asset Value 20.4% _____________________________ (1) Leverage ratio is net indebtedness, as defined in the credit agreement, divided by total asset value, defined in the credit agreement as 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, generally 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. As of September 30, 2018 , we had no borrowings outstanding under the facility and the Company's leverage ratio was 23.8% . Accordingly, interest on our borrowings under the facility will be based on LIBOR plus 150 basis points for the following quarter. We incurred interest and unused credit facility fees on the facility of $0.3 million for each of the three months ended September 30, 2018 and 2017 . We incurred interest and unused credit facility fees on the facility of $1.0 million and $0.7 million for the nine months ended September 30, 2018 and 2017 , respectively. Unsecured Term Loans We are party to two five -year unsecured term loans. The financial covenants of the term loans are consistent with the covenants on our senior unsecured credit facility, which are described above. The interest rate on each of the term loans is based on a pricing grid ranging from 145 to 220 basis points over LIBOR, as follows: Leverage Ratio Applicable Margin Less than or equal to 35% 1.45 % Greater than 35% but less than or equal to 45% 1.60 % Greater than 45% but less than or equal to 50% 1.75 % Greater than 50% but less than or equal to 55% 1.95 % Greater than 55% 2.20 % As of September 30, 2018 , the Company's leverage ratio was 23.8% . Accordingly, interest on our borrowings under the term loans will be based on LIBOR plus 145 basis points for the following quarter. We incurred interest on the term loans of $2.7 million and $2.1 million for the three months ended September 30, 2018 and 2017 , respectively. We incurred interest on the term loans of $7.6 million and $4.2 million for the nine months ended September 30, 2018 and 2017 , respectively. On October 18, 2018 , we entered into a new five -year $50 million unsecured term loan. There are currently no outstanding borrowings on the term loan. The term loan will be funded upon closing of the pending acquisition of a resort hotel in California. The financial covenants of the term loan are consistent with the covenants on our other unsecured term loans and our senior unsecured credit facility. The interest rate is based on a pricing grid ranging from 140 to 220 basis points over LIBOR, as follows: Leverage Ratio Applicable Margin Less than or equal to 25% 1.40 % Greater than 25% but less than or equal to 35% 1.45 % Greater than 35% but less than or equal to 45% 1.55 % Greater than 45% but less than or equal to 50% 1.75 % Greater than 50% but less than or equal to 55% 1.95 % Greater than 55% 2.20 %

Acquisitions

Acquisitions	9 Months Ended
	Sep. 30, 2018
Business Combinations [Abstract]
Acquisitions	Acquisitions On March 1, 2018 , we acquired the 77 -room Landing Resort & Spa in South Lake Tahoe, California, for a total contractual purchase price of $42 million . The acquisition was funded with corporate cash. The acquisition is accounted for as an acquisition of assets; accordingly, our direct acquisition costs of $0.5 million were capitalized. Upon acquisition of the hotel, we entered into a new management agreement with Two Roads Hospitality for an initial term of five years. The management agreement provides for a base management fee of 1.5% of gross revenues through 2020 and 1.75% of gross revenues for the remainder of the term. The management 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. The incentive management fee is capped at 1% of gross revenues for each year. The management agreement also specifies a corporate marketing contribution of 1% of gross revenues. On March 1, 2018 , we acquired the 242 -room Hotel Palomar in Phoenix, Arizona, for a total contractual purchase price of $80 million . The acquisition was funded with corporate cash. In connection with the acquisition, we assumed a $2.9 million loan under a qualified New Market Tax Credit program. Refer to Note 8 for additional information about the loan. The acquisition is accounted for as an acquisition of assets; accordingly, our direct acquisition costs of $0.3 million were capitalized. We assumed the existing management agreement with Kimpton Hotel and Restaurant Group. The management agreement provides for a base management fee of 3.5% of gross revenues. The management agreement also provides for an incentive management fee of 20% of hotel operating profit above an owner's priority, determined in accordance with the terms of the management agreement. The incentive management fee is capped at 1.5% of gross revenues for each year. We lease the surface and air rights of the hotel property pursuant to a ground lease with the City of Phoenix. We own the building improvements fee simple. The ground lease expires in 2085 , including all extension options. As lessee of government property, we are subject to a Government Property Lease Excise Tax ("GPLET") under Arizona state statute in lieu of ad valorem real estate taxes through the end of the term of the ground lease. We reviewed the terms of the ground lease and GPLET agreement and concluded that the terms of the ground lease are favorable to us compared with a typical market ground lease. Accordingly, we recorded a $20.0 million favorable ground lease asset that will be amortized over the remaining term of the ground lease, including all extension options. We assumed an agreement previously made with the lessee of the subsurface parking facility under the hotel, which requires us to pay 50% of the lessee's lease payments to the landlord—the City of Phoenix. The agreement is coterminous with the underlying subsurface ground lease, which expires in 2085 , including all extensions at the lessee's option. We reviewed the terms of the parking agreement and concluded that the terms are unfavorable to us compared with a typical market parking agreement. Accordingly, we recorded a $4.6 million unfavorable agreement liability that will be amortized over the remaining term of the parking agreement, including all extension options. The following table summarizes the relative fair value of the assets acquired and liabilities assumed in our acquisitions (in thousands): The Landing Resort & Spa Hotel Palomar Phoenix Land $ 14,816 $ — Building and improvements 24,351 59,703 Furnitures, fixtures and equipment 3,346 5,207 Total fixed assets 42,513 64,910 Favorable ground lease asset — 20,012 Unfavorable contract liability — (4,644 ) New Market Tax Credit loan assumption — (2,943 ) Other assets and liabilities, net (658 ) 497 Total $ 41,855 $ 77,832

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2018
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, 2018 and December 31, 2017 , in thousands, is as follows: September 30, 2018 December 31, 2017 Carrying Amount (1) Fair Value Carrying Amount (1) Fair Value Debt $ 931,637 $ 922,418 $ 937,792 $ 942,529 _______________ (1) The carrying amount of debt is net of unamortized debt issuance costs. The fair value of our debt is a Level 2 measurement under the fair value hierarchy (see Note 2). We estimate the fair value of our 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, 2018
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. On August 13, 2018, the Company brought suit against certain of its property insurers in St. Thomas, U.S. Virgin Islands, over the amount of the coverage the insurers owe as a result of the damage caused to Frenchman's Reef by Hurricanes Irma and Maria. On September 28, 2018, certain of the Company's property insurers brought a similar suit against the Company in New York seeking a declaration that the insurers do not owe the full amount of the Company's claim. Notwithstanding the litigation, the Company and its insurers continue to engage in discussions and negotiation regarding the Company's claim. Other Matters As previously reported, in February 2016, the Company was notified by the franchisor of one of its hotels that as a result of low guest satisfaction scores, the Company was in default under the franchise agreement for that hotel. The Company continues to proactively work with the franchisor and the manager of the hotel and has developed and executed a plan aimed to improve guest satisfaction scores. To date, the guest satisfaction scores have improved so that the Company is no longer in default under the franchise agreement. However, if the guest satisfaction scores were to decrease again, the franchisor may again notify the Company that it is in default under the franchise agreement and that the franchisor is reserving all of its rights under the franchise agreement, including the right to terminate the franchise agreement in the future. While the Company continues to work diligently with the franchisor and manager to maintain the guest satisfaction scores at a level such that the Company does not fall back into default, no assurance can be given that the Company will be successful. If the Company is not successful, the franchisor may seek to terminate the franchise agreement and assert a claim it is owed a termination fee, including a payment for liquidated damages, which could result in a material adverse effect on the Company's business, financial condition or results of operation.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2018
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, 2017 , included in our Annual Report on Form 10-K filed on February 27, 2018 . In our opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments necessary to present fairly our financial position as of September 30, 2018 , the results of our operations for the three and nine months ended September 30, 2018 and 2017 , and the cash flows for the nine months ended September 30, 2018 and 2017 . 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 Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, Consolidation , the Company will consolidate the entity when it is determined to be the primary beneficiary of the entity. The Operating Partnership meets the criteria of a variable interest entity. The Company is the primary beneficiary and, accordingly, we consolidate the Operating Partnership.
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.
Property and Equipment	Property and Equipment Following the adoption of Accounting Standards Update (“ASU”) No. 2017-01, investments in hotel properties, land, land improvements, building and furniture, fixtures and equipment and identifiable intangible assets are generally accounted for as asset acquisitions and recorded at relative fair value based upon total accumulated cost of the acquisition. Direct acquisition-related costs are capitalized as a component of the acquired assets. 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 are 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 5 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 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 goods or services are provided, and thereby the performance obligations are satisfied. Revenues consist of room sales, food and beverage sales, and other hotel department revenues, such as telephone, parking, gift shop sales and resort fees. Room revenue is generated through contracts with customers whereby the customer agrees to pay a daily rate for the right to use a hotel room. Our contract performance obligations are fulfilled at the end of the day that the customer is provided the room and revenue is recognized daily at the contract rate. Food and beverage revenue is generated through contracts with customers whereby the customer agrees to pay a contract rate for restaurant dining services or banquet services. Our contract performance obligations are fulfilled at the time that the food and beverage is provided to the customer or when the banquet facilities and related dining amenities are provided to the customer. We recognize food and beverage revenue upon the fulfillment of the contract with the customer. Other revenues are recognized at the point in time or over the time period that goods or services are provided to the customer. Certain ancillary services are provided by third parties and we assess whether we are the principal or agent in these arrangements. If we are the agent, revenue is recognized based upon the commission earned from the third party. If we are the principal, we recognize revenue based upon the gross sales price. Certain of our hotels have retail spaces, restaurants or other spaces which we lease to third parties. Lease revenue is recognized on a straight-line basis over the life of the lease and included in other operating revenues in our condensed consolidated statements of operations. Hotel operating revenues are disaggregated on the face of the condensed consolidated statements of operations into the categories of room revenue, food and beverage revenue, and other revenue to demonstrate how economic factors affect the nature, amount, timing, and uncertainty of revenue and cash flows. The following table provides information about trade receivables and contract liabilities (in thousands): September 30, 2018 December 31, 2017 Trade receivables (1) $ 46,455 $ 32,316 Advance deposits as deferred revenue (2) 14,104 14,754 ______________________ (1) Included within due from hotel managers on the accompanying condensed consolidated balance sheets. (2) Included within due to hotel managers on the accompanying condensed consolidated balance sheets. Advance deposits are provided when a customer or group of customers provides a deposit for a future stay or banquet event at our hotels. Advance deposits are converted to revenue when the services are provided to the customer or when a customer with a noncancelable reservation fails to arrive for part or all of the reservation. Conversely, advance deposits are generally refundable upon guest cancelation of the related reservation within an established period of time prior to the reservation.
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 awards with service or market conditions 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. However, deferred tax assets are recognized only to the extent that it is more likely than not that they will be realized based on consideration of all available evidence, including the future reversals of existing taxable temporary differences, future projected taxable income and tax planning strategies. Valuation allowances are provided if, based upon the weight of the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. 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 primary 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 observability 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.
Accounting for Impacts of Natural Disasters	Accounting for Impact of Natural Disasters Assets destroyed or damaged as a result of natural disasters or other involuntary events are written off or reduced in carrying value to their salvage value. When recovery of all or a portion of the amount of property damage loss or other covered expenses through insurance proceeds is demonstrated to be probable, a receivable is recorded and offsets the loss or expense up to the amount of the total loss or expense. No gain is recorded until all contingencies related to the insurance claim have been resolved. Income resulting from business interruption insurance is not recognized until all contingencies related to the insurance recoveries are resolved.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business , which clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions of assets or business combinations. As a result of the standard, we anticipate that the majority of our hotel acquisitions will be considered asset purchases as opposed to business combinations. However, the determination will be made on a transaction-by-transaction basis and we do not expect the determination to materially change the recognition of the assets and liabilities acquired. This standard is effective for annual periods beginning after December 15, 2017. We adopted ASU No. 2017-01 effective January 1, 2018. This standard will be applied on a prospective basis and, therefore, it does not affect the accounting for any of our transactions prior to January 1, 2018. Refer to Note 9 for more information about our two hotel property acquisitions during the nine months ended September 30, 2018 , which were both asset purchases. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , which requires that the statement of cash flows explain the change during the period in the total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. This standard is effective for annual periods beginning after December 15, 2017. We adopted ASU No. 2016-18 effective January 1, 2018. The adoption of ASU No. 2016-18 changed the presentation of the statement of cash flows for the Company and we utilized a retrospective transition method for each period presented within financial statements for periods subsequent to the date of adoption. Restricted cash reserves are included with cash and cash equivalents on our consolidated statements of cash flows for all periods presented. There was no impact to the condensed consolidated statements of income or the condensed consolidated balance sheets. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which clarifies and provides specific guidance on eight cash flow classification issues with an objective to reduce the current diversity in practice. This standard is effective for annual periods beginning after December 15, 2017. We adopted ASU No. 2016-15 effective January 1, 2018 and it did not have an impact on our consolidated financial statements. 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 adopted the new standard effective January 1, 2018 under the cumulative effect transition method. No adjustment was recorded to the Company’s opening balance of retained earnings on January 1, 2018 as there was no impact to net income for the Company. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which primarily changes the lessee's accounting for operating leases by requiring recognition of lease right-of-use assets and lease liabilities. This standard is effective for annual reporting periods beginning after December 15, 2018, with early adoption permitted. The primary impact of the new standard will be to the treatment of our ground leases, which represent a majority of all of our operating lease payments. We are continuing to evaluate the effect of ASU 2016-02 on our consolidated financial statements and related disclosures.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Schedule of Revenue Recognition	The following table provides information about trade receivables and contract liabilities (in thousands): September 30, 2018 December 31, 2017 Trade receivables (1) $ 46,455 $ 32,316 Advance deposits as deferred revenue (2) 14,104 14,754 ______________________ (1) Included within due from hotel managers on the accompanying condensed consolidated balance sheets. (2) Included within due to hotel managers on the accompanying condensed consolidated balance sheets.
Schedule of gain on business interruption	The following table summarizes the business interruption insurance income by impacted hotel property (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Frenchman's Reef $ 5,680 $ — $ 12,965 $ — Havana Cabana Key West 1,925 — 2,137 — The Lodge at Sonoma 622 — 1,152 — Total $ 8,227 $ — $ 16,254 $ —

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2018
Property, Plant and Equipment [Abstract]
Property and equipment	Property and equipment as of September 30, 2018 and December 31, 2017 consists of the following (in thousands): September 30, 2018 December 31, 2017 Land $ 617,695 $ 602,879 Land improvements 7,994 7,994 Buildings and site improvements 2,555,547 2,414,216 Furniture, fixtures and equipment 469,141 423,987 Construction in progress 18,673 31,906 3,669,050 3,480,982 Less: accumulated depreciation (866,161 ) (788,696 ) $ 2,802,889 $ 2,692,286

Favorable Lease Assets (Tables)

Favorable Lease Assets (Tables)	9 Months Ended
	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets by Major Class	Our favorable lease assets, net of accumulated amortization of $3.2 million and $2.7 million as of September 30, 2018 and December 31, 2017 , respectively, consist of the following (in thousands): September 30, 2018 December 31, 2017 Westin Boston Waterfront Hotel Ground Lease $ 17,480 $ 17,643 Hotel Palomar Phoenix Ground Lease 19,838 — Orchards Inn Sedona Annex Sublease 8,799 8,925 Lexington Hotel New York Tenant Leases 99 122 $ 46,216 $ 26,690

Capital Stock (Tables)

Capital Stock (Tables)	9 Months Ended
	Sep. 30, 2018
Equity [Abstract]
Schedule of Dividends Payable	We have paid the following dividends to holders of our common stock during 2018 as follows: Payment Date Record Date Dividend per Share January 12, 2018 December 29, 2017 $ 0.125 April 12, 2018 March 29, 2018 $ 0.125 July 12, 2018 June 29, 2018 $ 0.125 October 12, 2018 September 28, 2018 $ 0.125

Stock Incentive Plans (Tables)

Stock Incentive Plans (Tables)	9 Months Ended
	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Restricted Stock Awards	A summary of our restricted stock awards from January 1, 2018 to September 30, 2018 is as follows: Number of Shares Weighted- Average Grant Date Fair Value Unvested balance at January 1, 2018 630,962 $ 10.66 Granted 349,091 10.19 Vested (287,148 ) 11.02 Forfeited (51,061 ) 10.44 Unvested balance at September 30, 2018 641,844 $ 10.25
Schedule of Nonvested Performance-based Units Activity	A summary of our PSUs from January 1, 2018 to September 30, 2018 is as follows: Number of Target Units Weighted- Average Grant Date Fair Value Unvested balance at January 1, 2018 785,797 $ 10.42 Granted 293,111 9.82 Additional units from dividends 26,068 11.13 Vested (1) (218,514 ) 11.98 Forfeited (113,668 ) 9.86 Unvested balance at September 30, 2018 772,794 $ 11.18 ______________________ (1) The number of shares of common stock earned for the PSUs vested in 2018 was equal to 51.75% of the PSU Target Award.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2018
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, 2018 2017 2018 2017 Numerator: Net income $ 31,443 $ 21,623 $ 63,790 $ 67,105 Denominator: Weighted-average number of common shares outstanding—basic 208,758,945 200,834,910 204,520,637 200,767,104 Effect of dilutive securities: Unvested restricted common stock 221,018 173,557 212,051 170,612 Shares related to unvested PSUs 617,074 415,933 617,074 415,933 Weighted-average number of common shares outstanding—diluted 209,597,037 201,424,400 205,349,762 201,353,649 Earnings per share: Basic earnings per share $ 0.15 $ 0.11 $ 0.31 $ 0.33 Diluted earnings per share $ 0.15 $ 0.11 $ 0.31 $ 0.33

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
Summary of long term debt	The following table sets forth information regarding the Company’s debt as of September 30, 2018 and December 31, 2017 (dollars in thousands): Principal Balance as of Loan Interest Rate Maturity Date September 30, 2018 December 31, 2017 Salt Lake City Marriott Downtown mortgage loan 4.25% November 2020 $ 55,600 $ 56,717 Westin Washington D.C. City Center mortgage loan 3.99% January 2023 63,269 64,833 The Lodge at Sonoma, a Renaissance Resort & Spa mortgage loan 3.96% April 2023 27,849 28,277 Westin San Diego mortgage loan 3.94% April 2023 63,761 64,859 Courtyard Manhattan / Midtown East mortgage loan 4.40% August 2024 82,990 84,067 Renaissance Worthington mortgage loan 3.66% May 2025 82,941 84,116 JW Marriott Denver at Cherry Creek mortgage loan 4.33% July 2025 62,694 63,519 Boston Westin mortgage loan 4.36% November 2025 195,382 198,046 New Market Tax Credit loan (1) 5.17% December 2020 2,943 — Unamortized debt issuance costs (4,290 ) (4,795 ) Total mortgage and other debt, net of unamortized debt issuance costs 633,139 639,639 Unsecured term loan LIBOR + 1.45% (2) May 2021 100,000 100,000 Unsecured term loan LIBOR + 1.45% (2) April 2022 200,000 200,000 Unamortized debt issuance costs (1,502 ) (1,847 ) Unsecured term loan, net of unamortized debt issuance costs 298,498 298,153 Senior unsecured credit facility LIBOR + 1.50% May 2020 (3) — — Total debt, net of unamortized debt issuance costs $ 931,637 $ 937,792 Weighted-Average Interest Rate 4.03% _______________________ (1) Assumed in connection with the acquisition of the Hotel Palomar Phoenix in March 2018. (2) The interest rate at September 30, 2018 was 3.55% . (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 interest rate on each of the term loans is based on a pricing grid ranging from 145 to 220 basis points over LIBOR, as follows: Leverage Ratio Applicable Margin Less than or equal to 35% 1.45 % Greater than 35% but less than or equal to 45% 1.60 % Greater than 45% but less than or equal to 50% 1.75 % Greater than 50% but less than or equal to 55% 1.95 % Greater than 55% 2.20 % The interest rate on the facility is based upon LIBOR, plus an applicable margin based upon the Company’s leverage ratio, as follows: Leverage Ratio Applicable Margin Less than or equal to 35% 1.50 % Greater than 35% but less than or equal to 45% 1.65 % Greater than 45% but less than or equal to 50% 1.80 % Greater than 50% but less than or equal to 55% 2.00 % Greater than 55% 2.25 % The interest rate is based on a pricing grid ranging from 140 to 220 basis points over LIBOR, as follows: Leverage Ratio Applicable Margin Less than or equal to 25% 1.40 % Greater than 25% but less than or equal to 35% 1.45 % Greater than 35% but less than or equal to 45% 1.55 % Greater than 45% but less than or equal to 50% 1.75 % Greater than 50% but less than or equal to 55% 1.95 % Greater than 55% 2.20 %
Summary of the most restrictive covenants for senior unsecured credit facility	The facility also contains various corporate financial covenants. A summary of the most restrictive covenants is as follows: Actual at Covenant September 30, 2018 Maximum leverage ratio (1) 60% 23.8% Minimum fixed charge coverage ratio (2) 1.50x 4.25x Minimum tangible net worth (3) $1.98 billion $2.74 billion Secured recourse indebtedness Less than 45% of Total Asset Value 20.4% _____________________________ (1) Leverage ratio is net indebtedness, as defined in the credit agreement, divided by total asset value, defined in the credit agreement as 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, generally 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, 2018
Business Combinations [Abstract]
Schedule of Acquired Assets and Liabilities	The following table summarizes the relative fair value of the assets acquired and liabilities assumed in our acquisitions (in thousands): The Landing Resort & Spa Hotel Palomar Phoenix Land $ 14,816 $ — Building and improvements 24,351 59,703 Furnitures, fixtures and equipment 3,346 5,207 Total fixed assets 42,513 64,910 Favorable ground lease asset — 20,012 Unfavorable contract liability — (4,644 ) New Market Tax Credit loan assumption — (2,943 ) Other assets and liabilities, net (658 ) 497 Total $ 41,855 $ 77,832

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2018
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, 2018 and December 31, 2017 , in thousands, is as follows: September 30, 2018 December 31, 2017 Carrying Amount (1) Fair Value Carrying Amount (1) Fair Value Debt $ 931,637 $ 922,418 $ 937,792 $ 942,529 _______________ (1) The carrying amount of debt is net of unamortized debt issuance costs.

Organization - Narrative (Detai

Organization - Narrative (Details)	Sep. 30, 2018Hotelroom
Real Estate Properties [Line Items]
Number of hotels (in hotels)	30
Number of rooms in hotels, resorts and senior loan secured facility (in rooms) | room	9,949
Atlanta, Georgia
Real Estate Properties [Line Items]
Number of hotels (in hotels)	1
Boston, Massachusetts
Real Estate Properties [Line Items]
Number of hotels (in hotels)	2
Burlington, Vermont
Real Estate Properties [Line Items]
Number of hotels (in hotels)	1
Charleston, South Carolina
Real Estate Properties [Line Items]
Number of hotels (in hotels)	1
Chicago, Illinois
Real Estate Properties [Line Items]
Number of hotels (in hotels)	2
Denver, Colorado
Real Estate Properties [Line Items]
Number of hotels (in hotels)	2
Fort Lauderdale, Florida
Real Estate Properties [Line Items]
Number of hotels (in hotels)	1
Fort Worth, Texas
Real Estate Properties [Line Items]
Number of hotels (in hotels)	1
Huntington Beach, California
Real Estate Properties [Line Items]
Number of hotels (in hotels)	1
Key West, Florida
Real Estate Properties [Line Items]
Number of hotels (in hotels)	2
New York, New York
Real Estate Properties [Line Items]
Number of hotels (in hotels)	4
Phoenix, Arizona
Real Estate Properties [Line Items]
Number of hotels (in hotels)	1
Salt Lake City, Utah
Real Estate Properties [Line Items]
Number of hotels (in hotels)	1
San Diego, California
Real Estate Properties [Line Items]
Number of hotels (in hotels)	1
San Francisco, California
Real Estate Properties [Line Items]
Number of hotels (in hotels)	1
Sedona, Arizona
Real Estate Properties [Line Items]
Number of hotels (in hotels)	2
Sonoma, California
Real Estate Properties [Line Items]
Number of hotels (in hotels)	1
South Lake Tahoe, California
Real Estate Properties [Line Items]
Number of hotels (in hotels)	1
Washington D.C
Real Estate Properties [Line Items]
Number of hotels (in hotels)	2
St. Thomas, U.S. Virgin Islands
Real Estate Properties [Line Items]
Number of hotels (in hotels)	1
Vail, Colorado
Real Estate Properties [Line Items]
Number of hotels (in hotels)	1

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Narrative (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2018USD ($)Hotel	Sep. 30, 2017USD ($)	Dec. 31, 2017USD ($)
Property, Plant and Equipment [Line Items]
Accrual for tax uncertainties	$ 0		$ 0		$ 0
Proceeds from insurance settlement, property and business interruption	32,500,000		85,000,000
Gain on business interruption insurance	8,227,000	$ 0	16,254,000	$ 0
Estimated recovery of impairment losses from insurance			0	39,907,000
Gain on property insurance proceeds	1,730,000	0	$ 1,730,000	0
Hotels acquired | Hotel			2
Minimum | Land, Buildings and Improvements
Property, Plant and Equipment [Line Items]
Useful life			5 years
Minimum | Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Useful life			1 year
Maximum | Land, Buildings and Improvements
Property, Plant and Equipment [Line Items]
Useful life			40 years
Maximum | Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Useful life			10 years
Other Hotel Expenses
Property, Plant and Equipment [Line Items]
Estimated recovery of impairment losses from insurance			$ 2,900,000
Havana Cabana Key West
Property, Plant and Equipment [Line Items]
Proceeds from insurance settlement, property and business interruption	8,300,000
Gain on business interruption insurance	1,925,000	0	2,137,000	0
Gain on property insurance proceeds	1,700,000		1,700,000
The Lodge at Sonoma
Property, Plant and Equipment [Line Items]
Proceeds from insurance settlement, business interruption			1,300,000
Gain on business interruption insurance	$ 622,000	$ 0	$ 1,152,000	$ 0

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Revenue (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Trade receivables	$ 46,455	$ 32,316
Advance deposits as deferred revenue	11,838	14,307
Due To Hotel Managers
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Advance deposits as deferred revenue	$ 14,104	$ 14,754

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Schedule of Gain on Business Interruption (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Business Interruption Loss [Line Items]
Gain on business interruption insurance	$ 8,227	$ 0	$ 16,254	$ 0
Frenchman's Reef
Business Interruption Loss [Line Items]
Gain on business interruption insurance	5,680	0	12,965	0
Havana Cabana Key West
Business Interruption Loss [Line Items]
Gain on business interruption insurance	1,925	0	2,137	0
The Lodge at Sonoma
Business Interruption Loss [Line Items]
Gain on business interruption insurance	$ 622	$ 0	$ 1,152	$ 0

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Property and Equipment
Property and equipment, at cost	$ 3,669,050	$ 3,480,982
Less: accumulated depreciation	(866,161)	(788,696)
Property and equipment, net	2,802,889	2,692,286
Land
Property and Equipment
Property and equipment, at cost	617,695	602,879
Land improvements
Property and Equipment
Property and equipment, at cost	7,994	7,994
Buildings and site improvements
Property and Equipment
Property and equipment, at cost	2,555,547	2,414,216
Furniture, fixtures and equipment
Property and Equipment
Property and equipment, at cost	469,141	423,987
Construction in progress
Property and Equipment
Property and equipment, at cost	$ 18,673	$ 31,906

Property and Equipment - Narrat

Property and Equipment - Narrative (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Accrued capital expenditures	$ 17.8	$ 11.7

Favorable Lease Assets - Narrat

Favorable Lease Assets - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Business Acquisition [Line Items]
Finite-lived intangible assets, amortization expense	$ 200	$ 100	$ 500	$ 300
Favorable lease asset	46,216		46,216		$ 26,690
Off-Market Favorable Lease
Business Acquisition [Line Items]
Accumulated amortization	3,200		3,200		$ 2,700
Hotel Palomar Phoenix Ground Lease | Off-Market Favorable Lease
Business Acquisition [Line Items]
Favorable lease asset	$ 20,000		$ 20,000

Favorable Lease Assets - Schedu

Favorable Lease Assets - Schedule of Finite-Lived Intangible Assets by Major Class (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Indefinite-lived Intangible Assets by Major Class [Line Items]
Carrying amount of the lease	$ 46,216	$ 26,690
Above Market Leases Ground | Westin Boston Waterfront Hotel Ground Lease
Indefinite-lived Intangible Assets by Major Class [Line Items]
Carrying amount of the lease	17,480	17,643
Above Market Leases Ground | Hotel Palomar Phoenix Ground Lease
Indefinite-lived Intangible Assets by Major Class [Line Items]
Carrying amount of the lease	19,838	0
Above Market Leases Ground | Orchards Inn Sedona Annex Sublease
Indefinite-lived Intangible Assets by Major Class [Line Items]
Carrying amount of the lease	8,799	8,925
Above Market Leases Ground | Lexington Hotel New York Tenant Leases
Indefinite-lived Intangible Assets by Major Class [Line Items]
Carrying amount of the lease	$ 99	$ 122

Capital Stock - Narrative (Deta

Capital Stock - Narrative (Details) $ / shares in Units, $ in Millions	3 Months Ended	9 Months Ended
	Dec. 31, 2018USD ($)$ / sharesshares	Sep. 30, 2018USD ($)vote$ / sharesshares	Nov. 02, 2018USD ($)	Dec. 31, 2017$ / sharesshares
Class of Stock [Line Items]
Common stock, shares authorized (up to) (in shares)		400,000,000		400,000,000
Common stock, par value (in dollars per share) | $ / shares		$ 0.01		$ 0.01
Votes per common share | vote		1
Preferred stock, shares authorized (up to) (in shares)		10,000,000		10,000,000
Preferred stock, par value (in dollars per share) | $ / shares		$ 0.01		$ 0.01
Preferred stock, shares outstanding (in shares)		0		0
Common stock partnership units option redemption ratio		1
Common Stock
Class of Stock [Line Items]
Aggregate offering price (up to) | $		$ 200
Common stock, sold (in shares)		7,472,946
Shares sold, price per share ( in dollars per share) | $ / shares		$ 12.56
Proceeds from sale of common stock, net | $		$ 92.9
Value amount of shares authorized to be repurchased (up to) | $		$ 150
Unaffiliated Third Parties
Class of Stock [Line Items]
Operating partnerships units held (in shares)		0		0
Subsequent Event | Common Stock
Class of Stock [Line Items]
Value amount of shares authorized to be repurchased (up to) | $			$ 250
Scenario, Forecast
Class of Stock [Line Items]
Limited partners' capital account | $	$ 150
Limited partnership, units sold (in shares)	1,200,000
Limited partnership, price per unit (in dollars per unit) | $ / shares	$ 11.76

Capital Stock - Schedule of Div

Capital Stock - Schedule of Dividends Payable (Details) - $ / shares	Oct. 12, 2018	Jul. 12, 2018	Apr. 12, 2018	Jan. 12, 2018
Dividends Payable [Line Items]
Dividends per Share (in dollars per share)		$ 0.1250	$ 0.1250	$ 0.1250
Subsequent Event
Dividends Payable [Line Items]
Dividends per Share (in dollars per share)	$ 0.1250

Stock Incentive Plans - Narrati

Stock Incentive Plans - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	Apr. 02, 2018	Mar. 02, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period (in years)					3 years
Percentage of target award of maximum possible payout to executives					150.00%
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)					3 years
Awards expected to vest in 2019 (in shares)			310,117		310,117
Awards expected to vest in 2020 (in shares)			215,368		215,368
Awards expected to vest in 2021 (in shares)			116,359		116,359
Unrecognized compensation cost			$ 4.8		$ 4.8
Unrecognized compensation expense related to compensation awards, period for recognition (in months)					23 months
Compensation expense			0.2	$ 0.8	$ 2.3	$ 2.3
Number of shares, granted (in shares)					349,091
Restricted Stock | Chief Financial Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Accelerated compensation cost					$ 0.6
Reversal of accelerated compensation cost			$ 0.5
Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)					3 years
Awards expected to vest in 2019 (in shares)			245,055		245,055
Awards expected to vest in 2020 (in shares)			228,521		228,521
Awards expected to vest in 2021 (in shares)			299,218		299,218
Unrecognized compensation cost			$ 3.7		$ 3.7
Unrecognized compensation expense related to compensation awards, period for recognition (in months)					24 months
Compensation expense			(0.4)	$ 0.6	$ 1.3	$ 1.8
Percentage of total stockholder return for payout of shares					30.00%
Number of shares, granted (in shares)					293,111
Fair value at grant date (in dollars per share)	$ 9	$ 9.52
Volatility	26.90%	26.90%
Risk-free rate	2.37%	2.40%
Fair value at grant date based on hotel market share (in dollars per share)	$ 10.32	$ 10.18
Performance Stock Units | Executive Officers
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of total stockholder return for payout of shares					75.00%
Number of shares, granted (in shares)		264,509
Performance Stock Units | Chief Financial Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense			$ (1)		$ (0.4)
Number of shares, granted (in shares)	28,602
2016 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option and incentive plan, shares authorized (up to) (in shares)			6,082,664		6,082,664
Number of shares issued or committed to issue (in shares)			846,517		846,517
Issued In 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period (in years)					3 years
Issued In 2016 | Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)					3 years
Percentage of payout based on improving market share					25.00%
Issued In 2016 | Performance Stock Units | Executive Officers
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of total stockholder return for payout of shares					75.00%
Issued In 2017 | Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)					3 years
Percentage of payout based on improving market share					50.00%
Issued In 2017 | Performance Stock Units | Executive Officers
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of total stockholder return for payout of shares					50.00%

Stock Incentive Plans - Stock A

Stock Incentive Plans - Stock Awards Activity (Details)	9 Months Ended
	Sep. 30, 2018$ / sharesshares
Weighted- Average Grant Date Fair Value
Stock of common stock earned for the PSUs vested in 2018	51.75%
Restricted Stock
Number of Shares
Beginning Balance (in shares) | shares	630,962
Granted (in shares) | shares	349,091
Vested (in shares) | shares	(287,148)
Forfeited (in shares) | shares	(51,061)
Ending Balance (in shares) | shares	641,844
Weighted- Average Grant Date Fair Value
Beginning balance (in dollars per share) | $ / shares	$ 10.66
Granted (in dollars per share) | $ / shares	10.19
Vested (in dollars per share) | $ / shares	11.02
Forfeited (in dollars per share) | $ / shares	10.44
Ending balance (in dollars per share) | $ / shares	$ 10.25
Performance Stock Units
Number of Shares
Beginning Balance (in shares) | shares	785,797
Granted (in shares) | shares	293,111
Additional units from dividends (in shares) | shares	26,068
Vested (in shares) | shares	(218,514)
Forfeited (in shares) | shares	(113,668)
Ending Balance (in shares) | shares	772,794
Weighted- Average Grant Date Fair Value
Beginning balance (in dollars per share) | $ / shares	$ 10.42
Granted (in dollars per share) | $ / shares	9.82
Additional units from dividends (in dollars per share) | $ / shares	11.13
Vested (in dollars per share) | $ / shares	11.98
Forfeited (in dollars per share) | $ / shares	9.86
Ending balance (in dollars per share) | $ / shares	$ 11.18

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, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Numerator:
Net income	$ 31,443	$ 21,623	$ 63,790	$ 67,105
Denominator:
Weighted-average number of common shares outstanding—basic (in shares)	208,758,945	200,834,910	204,520,637	200,767,104
Effect of dilutive securities:
Weighted-average number of common shares outstanding—diluted (in shares)	209,597,037	201,424,400	205,349,762	201,353,649
Earnings per share:
Basic earnings per share (in dollars per share)	$ 0.15	$ 0.11	$ 0.31	$ 0.33
Diluted earnings per share (in dollars per share)	$ 0.15	$ 0.11	$ 0.31	$ 0.33
Unvested restricted common stock
Effect of dilutive securities:
Unvested restricted common stock and shares related to unvested PSUs (in shares)	221,018	173,557	212,051	170,612
Shares related to unvested PSUs
Effect of dilutive securities:
Unvested restricted common stock and shares related to unvested PSUs (in shares)	617,074	415,933	617,074	415,933

Debt - Schedule of Long Term De

Debt - Schedule of Long Term Debt (Details) - USD ($)	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Total mortgage and other debt, net of unamortized debt issuance costs	$ 633,139,000	$ 639,639,000
Total debt	$ 931,637,000	937,792,000
Weighted-average interest rate (as a percent)	4.03%
Mortgages
Debt Instrument [Line Items]
Unamortized debt issuance costs	$ (4,290,000)	(4,795,000)
Total mortgage and other debt, net of unamortized debt issuance costs	633,139,000	639,639,000
Unsecured Term Loan
Debt Instrument [Line Items]
Unamortized debt issuance costs	(1,502,000)	(1,847,000)
Total debt	298,498,000	298,153,000
Unsecured credit facility
Debt Instrument [Line Items]
Senior unsecured credit facility	$ 0
Unsecured credit facility | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	1.50%
Unsecured Term Loan Due May 2021
Debt Instrument [Line Items]
Interest rate	3.55%
Unsecured Term Loan Due May 2021 | Unsecured Term Loan
Debt Instrument [Line Items]
Principal balance	$ 100,000,000	100,000,000
Line of credit, variable rate basis description	LIBOR + 1.45% (2)
Unsecured Term Loan Due May 2021 | Unsecured Term Loan | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	1.45%
Unsecured Term Loan Due April 2022
Debt Instrument [Line Items]
Interest rate	3.55%
Unsecured Term Loan Due April 2022 | Unsecured Term Loan
Debt Instrument [Line Items]
Principal balance	$ 200,000,000	200,000,000
Line of credit, variable rate basis description	LIBOR + 1.45% (2)
Unsecured Term Loan Due April 2022 | Unsecured Term Loan | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	1.45%
Senior Unsecured Credit Facility | Unsecured credit facility
Debt Instrument [Line Items]
Senior unsecured credit facility	$ 0	0
Line of credit, variable rate basis description	LIBOR + 1.50%
Senior Unsecured Credit Facility | Unsecured credit facility | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	1.50%
Salt Lake City Marriott Downtown | Mortgages
Debt Instrument [Line Items]
Principal balance	$ 55,600,000	56,717,000
Interest rate, stated percentage	4.25%
Westin Washington, D.C. City Center | Mortgages
Debt Instrument [Line Items]
Principal balance	$ 63,269,000	64,833,000
Interest rate, stated percentage	3.99%
The Lodge at Sonoma, a Renaissance Resort and Spa | Mortgages
Debt Instrument [Line Items]
Principal balance	$ 27,849,000	28,277,000
Interest rate, stated percentage	3.96%
Westin San Diego | Mortgages
Debt Instrument [Line Items]
Principal balance	$ 63,761,000	64,859,000
Interest rate, stated percentage	3.94%
Courtyard Manhattan / Midtown East | Mortgages
Debt Instrument [Line Items]
Principal balance	$ 82,990,000	84,067,000
Interest rate, stated percentage	4.40%
Renaissance Worthington | Mortgages
Debt Instrument [Line Items]
Principal balance	$ 82,941,000	84,116,000
Interest rate, stated percentage	3.6625%
JW Marriott Denver at Cherry Creek | Mortgages
Debt Instrument [Line Items]
Principal balance	$ 62,694,000	63,519,000
Interest rate, stated percentage	4.33%
Boston Westin | Mortgages
Debt Instrument [Line Items]
Principal balance	$ 195,382,000	198,046,000
Interest rate, stated percentage	4.36%
New Market Tax Credit loan | Mortgages
Debt Instrument [Line Items]
Principal balance	$ 2,943,000	$ 0
Interest rate, stated percentage	5.17%

Debt - Mortgage Debt (Details)

Debt - Mortgage Debt (Details) $ in Thousands	Sep. 30, 2018USD ($)Hotel	Mar. 01, 2018USD ($)	Dec. 31, 2017USD ($)
Debt Instrument [Line Items]
Number of hotels (in hotels) | Hotel	30
Long-term debt	$ 931,637		$ 937,792
Mortgages
Debt Instrument [Line Items]
Number of hotels (in hotels) | Hotel	8
New Market Tax Credit loan | Mortgages
Debt Instrument [Line Items]
Principal balance	$ 2,943		$ 0
Interest rate, stated percentage	5.17%
Hotel Palomar Phoenix Ground Lease
Debt Instrument [Line Items]
Long-term debt		$ 2,943
Principal balance		$ 2,900

Debt - Senior Unsecured Credit

Debt - Senior Unsecured Credit Facility (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)
Line of Credit Facility [Line Items]
Percent of unused portion line of credit facility triggering lower commitment fee (as a percent)			50.00%
Net proceeds from future equity issuances (as a percent)			75.00%
Unsecured credit facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity (up to)	$ 300,000,000		$ 300,000,000
Increase in credit facility	600,000,000		600,000,000
Senior unsecured credit facility	0		0
Interest and unused credit facility fees	$ 300,000	$ 300,000	$ 1,000,000	$ 700,000
Minimum
Line of Credit Facility [Line Items]
Line of credit facility, unused capacity, commitment fee (as a percent)			0.20%
Maximum
Line of Credit Facility [Line Items]
Line of credit facility, unused capacity, commitment fee (as a percent)			0.30%
Line Of Credit Facility Covenant
Line of Credit Facility [Line Items]
Maximum leverage ratio (as a percent)	0.60		0.60
Minimum fixed charge coverage ratio			1.5
Minimum tangible net worth	$ 1,980,000,000		$ 1,980,000,000
Secured recourse indebtedness ratio			45.00%
Line Of Credit Facility Covenant Actual Results
Line of Credit Facility [Line Items]
Maximum leverage ratio (as a percent)	0.238		0.238
Minimum fixed charge coverage ratio			4.25
Minimum tangible net worth	$ 2,740,000,000		$ 2,740,000,000
Secured recourse indebtedness ratio			20.40%
LIBOR | Unsecured credit facility
Line of Credit Facility [Line Items]
Basis spread on variable rate			1.50%
Less than or equal to 35% | Maximum | Unsecured credit facility
Line of Credit Facility [Line Items]
Ratio of net indebtedness to EBITDA			0.35
Less than or equal to 35% | LIBOR | Unsecured credit facility
Line of Credit Facility [Line Items]
Basis spread on variable rate			1.50%
Greater than 35% but less than or equal to 45% | Minimum | Unsecured credit facility
Line of Credit Facility [Line Items]
Ratio of net indebtedness to EBITDA			0.35
Greater than 35% but less than or equal to 45% | Maximum | Unsecured credit facility
Line of Credit Facility [Line Items]
Ratio of net indebtedness to EBITDA			0.45
Greater than 35% but less than or equal to 45% | LIBOR | Unsecured credit facility
Line of Credit Facility [Line Items]
Basis spread on variable rate			1.65%
Greater than 45% but less than or equal to 50% | Minimum | Unsecured credit facility
Line of Credit Facility [Line Items]
Ratio of net indebtedness to EBITDA			0.45
Greater than 45% but less than or equal to 50% | Maximum | Unsecured credit facility
Line of Credit Facility [Line Items]
Ratio of net indebtedness to EBITDA			0.50
Greater than 45% but less than or equal to 50% | LIBOR | Unsecured credit facility
Line of Credit Facility [Line Items]
Basis spread on variable rate			1.80%
Greater than 50% but less than or equal to 55% | Minimum | Unsecured credit facility
Line of Credit Facility [Line Items]
Ratio of net indebtedness to EBITDA			0.50
Greater than 50% but less than or equal to 55% | Maximum | Unsecured credit facility
Line of Credit Facility [Line Items]
Ratio of net indebtedness to EBITDA			0.55
Greater than 50% but less than or equal to 55% | LIBOR | Unsecured credit facility
Line of Credit Facility [Line Items]
Basis spread on variable rate			2.00%
Greater than 55% | Minimum | Unsecured credit facility
Line of Credit Facility [Line Items]
Ratio of net indebtedness to EBITDA			0.55
Greater than 55% | LIBOR | Unsecured credit facility
Line of Credit Facility [Line Items]
Basis spread on variable rate			2.25%

Debt - Unsecured Term Loan (Det

Debt - Unsecured Term Loan (Details)	Oct. 18, 2018USD ($)	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2018USD ($)loan	Sep. 30, 2017USD ($)	Dec. 31, 2017USD ($)
Debt Instrument [Line Items]
Long-term debt		$ 931,637,000		$ 931,637,000		$ 937,792,000
Line Of Credit Facility Covenant Actual Results
Debt Instrument [Line Items]
Maximum leverage ratio (as a percent)		0.238		0.238
Unsecured Term Loan | Less than or equal to 25% | Maximum
Debt Instrument [Line Items]
Ratio of net indebtedness to EBITDA				0.25
Unsecured Term Loan | Less than or equal to 35% | Maximum
Debt Instrument [Line Items]
Ratio of net indebtedness to EBITDA				0.35
Unsecured Term Loan | Greater than 35% but less than or equal to 45% | Minimum
Debt Instrument [Line Items]
Ratio of net indebtedness to EBITDA				0.35
Unsecured Term Loan | Greater than 35% but less than or equal to 45% | Maximum
Debt Instrument [Line Items]
Ratio of net indebtedness to EBITDA				0.45
Unsecured Term Loan | Greater than 45% but less than or equal to 50% | Minimum
Debt Instrument [Line Items]
Ratio of net indebtedness to EBITDA				0.45
Unsecured Term Loan | Greater than 45% but less than or equal to 50% | Maximum
Debt Instrument [Line Items]
Ratio of net indebtedness to EBITDA				0.5
Unsecured Term Loan | Greater than 50% but less than or equal to 55% | Minimum
Debt Instrument [Line Items]
Ratio of net indebtedness to EBITDA				0.5
Unsecured Term Loan | Greater than 50% but less than or equal to 55% | Maximum
Debt Instrument [Line Items]
Ratio of net indebtedness to EBITDA				0.55
Unsecured Term Loan | Greater than 55% | Minimum
Debt Instrument [Line Items]
Ratio of net indebtedness to EBITDA				0.55
Unsecured Term Loan, $50 Million | Greater than 25% but less than or equal to 35% | Minimum
Debt Instrument [Line Items]
Ratio of net indebtedness to EBITDA				0.25
Unsecured Term Loan, $50 Million | Greater than 25% but less than or equal to 35% | Maximum
Debt Instrument [Line Items]
Ratio of net indebtedness to EBITDA				0.35
Unsecured Term Loan, $50 Million | Greater than 35% but less than or equal to 45% | Minimum
Debt Instrument [Line Items]
Ratio of net indebtedness to EBITDA				0.35
Unsecured Term Loan, $50 Million | Greater than 35% but less than or equal to 45% | Maximum
Debt Instrument [Line Items]
Ratio of net indebtedness to EBITDA				0.45
Unsecured Term Loan, $50 Million | Greater than 45% but less than or equal to 50% | Minimum
Debt Instrument [Line Items]
Ratio of net indebtedness to EBITDA				0.45
Unsecured Term Loan, $50 Million | Greater than 45% but less than or equal to 50% | Maximum
Debt Instrument [Line Items]
Ratio of net indebtedness to EBITDA				0.50
Unsecured Term Loan, $50 Million | Greater than 50% but less than or equal to 55% | Minimum
Debt Instrument [Line Items]
Ratio of net indebtedness to EBITDA				0.50
Unsecured Term Loan, $50 Million | Greater than 50% but less than or equal to 55% | Maximum
Debt Instrument [Line Items]
Ratio of net indebtedness to EBITDA				0.55
Unsecured Term Loan, $50 Million | Greater than 55% | Minimum
Debt Instrument [Line Items]
Ratio of net indebtedness to EBITDA				0.55
Term loan | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate				1.45%
Interest incurred on the facility		$ 2,700,000	$ 2,100,000	$ 7,600,000	$ 4,200,000
Term loan | LIBOR | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate				1.45%
Term loan | LIBOR | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate				2.00%
Term loan | LIBOR | Less than or equal to 35%
Debt Instrument [Line Items]
Basis spread on variable rate				1.45%
Term loan | LIBOR | Greater than 35% but less than or equal to 45%
Debt Instrument [Line Items]
Basis spread on variable rate				1.60%
Term loan | LIBOR | Greater than 45% but less than or equal to 50%
Debt Instrument [Line Items]
Basis spread on variable rate				1.75%
Term loan | LIBOR | Greater than 50% but less than or equal to 55%
Debt Instrument [Line Items]
Basis spread on variable rate				1.95%
Term loan | LIBOR | Greater than 55%
Debt Instrument [Line Items]
Basis spread on variable rate				2.20%
Term loan | Unsecured Term Loan
Debt Instrument [Line Items]
Number of loans | loan				2
Debt instrument, term (in years)				5 years
Term loan | Unsecured Term Loan, $50 Million
Debt Instrument [Line Items]
Long-term debt		$ 0		$ 0
Term loan | Unsecured Term Loan, $50 Million | LIBOR | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate				1.40%
Term loan | Unsecured Term Loan, $50 Million | LIBOR | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate				2.20%
Term loan | Unsecured Term Loan, $50 Million | LIBOR | Less than or equal to 25%
Debt Instrument [Line Items]
Basis spread on variable rate				1.40%
Term loan | Unsecured Term Loan, $50 Million | LIBOR | Greater than 25% but less than or equal to 35%
Debt Instrument [Line Items]
Basis spread on variable rate				1.45%
Term loan | Unsecured Term Loan, $50 Million | LIBOR | Greater than 35% but less than or equal to 45%
Debt Instrument [Line Items]
Basis spread on variable rate				1.55%
Term loan | Unsecured Term Loan, $50 Million | LIBOR | Greater than 45% but less than or equal to 50%
Debt Instrument [Line Items]
Basis spread on variable rate				1.75%
Term loan | Unsecured Term Loan, $50 Million | LIBOR | Greater than 50% but less than or equal to 55%
Debt Instrument [Line Items]
Basis spread on variable rate				1.95%
Term loan | Unsecured Term Loan, $50 Million | LIBOR | Greater than 55%
Debt Instrument [Line Items]
Basis spread on variable rate				2.20%
Subsequent Event | Term loan | Unsecured Term Loan, $50 Million
Debt Instrument [Line Items]
Debt instrument, term (in years)	5 years
Face amount	$ 50,000,000

Acquisitions - Narrative (Detai

Acquisitions - Narrative (Details) $ in Thousands	Mar. 01, 2018USD ($)room	Sep. 30, 2018USD ($)	Dec. 31, 2017USD ($)
Business Acquisition [Line Items]
Unfavorable agreement liability		$ 73,977	$ 70,734
The Landing Resort & Spa
Business Acquisition [Line Items]
Number of rooms acquired | room	77
Purchase price	$ 42,000
Acquisition costs	$ 500
Management agreement (years)	5 years
Management fees, revenue percentage in 2020	1.50%
Base management fee percentage of gross revenue thereafter	1.75%
Incentive management fees	15.00%
Base incentive management fee percentage of gross revenues	1.00%
Corporate marketing contribution, gross revenues percentage	1.00%
Favorable ground lease asset	$ 0
Unfavorable agreement liability	$ 0
Hotel Palomar Phoenix
Business Acquisition [Line Items]
Number of rooms acquired | room	242
Purchase price	$ 80,000
Acquisition costs	$ 300
Incentive management fees	20.00%
Base incentive management fee percentage of gross revenues	1.50%
Principal balance	$ 2,900
Base management fee percentage of gross revenue	3.50%
Favorable ground lease asset	$ 20,012
Percentage of lease payments	50.00%
Unfavorable agreement liability	$ 4,644

Acquisitions - Allocation of Fa

Acquisitions - Allocation of Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Mar. 01, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
Unfavorable contract liability	$ (73,977)		$ (70,734)
New Market Tax Credit loan assumption	$ (931,637)		$ (937,792)
The Landing Resort & Spa
Business Acquisition [Line Items]
Land		$ 14,816
Building and improvements		24,351
Furnitures, fixtures and equipment		3,346
Total fixed assets		42,513
Favorable ground lease asset		0
Unfavorable contract liability		0
New Market Tax Credit loan assumption		0
Other assets and liabilities, net		(658)
Total		41,855
Hotel Palomar Phoenix
Business Acquisition [Line Items]
Land		0
Building and improvements		59,703
Furnitures, fixtures and equipment		5,207
Total fixed assets		64,910
Favorable ground lease asset		20,012
Unfavorable contract liability		(4,644)
New Market Tax Credit loan assumption		(2,943)
Other assets and liabilities, net		497
Total		$ 77,832

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Fair Value of Certain Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying value	$ 931,637	$ 937,792
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying value	931,637	937,792
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	$ 922,418	$ 942,529

Uncategorized Items - drh-20180

Label	Element	Value	[1]
Restricted Cash	us-gaap_RestrictedCash	$ 40,204,000
Restricted Cash	us-gaap_RestrictedCash	$ 42,624,000
[1]	Restricted cash primarily consists of reserves for replacement of furniture and fixtures held by our hotel managers and cash held in escrow pursuant to lender requirements.