Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 28, 2020 | Jun. 28, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-32514 | ||
Entity Registrant Name | DIAMONDROCK HOSPITALITY CO | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 20-1180098 | ||
Entity Address, Address Line One | 2 Bethesda Metro Center, Suite 1400, | ||
Entity Address, City or Town | Bethesda, | ||
Entity Address, State or Province | MD | ||
Entity Address, Postal Zip Code | 20814 | ||
City Area Code | 240 | ||
Local Phone Number | 744-1150 | ||
Title of 12(b) Security | Common Stock, $.01 par value | ||
Trading Symbol | DRH | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2.1 | ||
Entity Common Stock, Shares Outstanding (in shares) | 200,357,322 | ||
Documents Incorporated by Reference | Portions of the registrant's Proxy Statement for its 2020 Annual Meeting of Stockholders, to be filed with the Securities and Exchange Commission not later than 120 days after December 31, 2019 , are incorporated by reference in Part III herein. | ||
Entity Central Index Key | 0001298946 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
ASSETS | |||
Property and equipment, net | $ 3,026,769 | $ 2,944,617 | |
Right-of-use assets | 98,145 | ||
Restricted cash | [1] | 57,268 | 47,735 |
Due from hotel managers | 91,207 | 86,914 | |
Favorable lease assets, net | 0 | 63,945 | |
Prepaid and other assets | 29,853 | 10,506 | |
Cash and cash equivalents | 122,524 | 43,863 | |
Total assets | 3,425,766 | 3,197,580 | |
Liabilities: | |||
Mortgage and other debt, net of unamortized debt issuance costs | 616,329 | 629,747 | |
Unsecured term loans, net of unamortized debt issuance costs | 398,770 | 348,219 | |
Senior unsecured credit facility | 75,000 | 0 | |
Total debt | 1,090,099 | 977,966 | |
Deferred income related to key money, net | 11,342 | 11,739 | |
Unfavorable contract liabilities, net | 67,422 | 73,151 | |
Deferred rent | 52,012 | 93,719 | |
Lease liabilities | 103,625 | ||
Due to hotel managers | 72,445 | 72,678 | |
Distributions declared and unpaid | 25,815 | 26,339 | |
Accounts payable and accrued expenses | 81,944 | 51,395 | |
Total liabilities | 1,504,704 | 1,306,987 | |
Equity: | |||
Preferred stock, $0.01 par value; 10,000,000 shares authorized; no shares issued and outstanding | 0 | 0 | |
Common stock, $0.01 par value; 400,000,000 shares authorized; 200,207,795 and 204,536,485 shares issued and outstanding at December 31, 2019 and 2018, respectively | 2,002 | 2,045 | |
Additional paid-in capital | 2,089,349 | 2,126,472 | |
Accumulated deficit | (178,861) | (245,620) | |
Total stockholders' equity | 1,912,490 | 1,882,897 | |
Noncontrolling interests | 8,572 | 7,696 | |
Total equity | 1,921,062 | 1,890,593 | |
Total liabilities and equity | $ 3,425,766 | $ 3,197,580 | |
[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. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
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) | 200,207,795 | 204,536,485 |
Common stock, shares outstanding (in shares) | 200,207,795 | 204,536,485 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues: | |||
Total revenue | $ 938,091 | $ 863,704 | $ 870,005 |
Operating Expenses: | |||
Depreciation and amortization | 118,110 | 104,524 | 99,090 |
Impairment losses | 0 | 0 | 3,209 |
Hotel acquisition costs | 0 | 0 | 2,028 |
Corporate expenses | 28,231 | 28,563 | 26,711 |
Business interruption insurance income | (8,822) | (19,379) | (4,051) |
Gain on property insurance settlement | (144,192) | (1,724) | 0 |
Total operating expenses, net | 684,092 | 733,643 | 730,222 |
Interest and other income, net | (1,197) | (1,806) | (1,820) |
Interest expense | 46,584 | 40,970 | 38,481 |
Loss on sales of hotel properties, net | 0 | 0 | 764 |
Loss on early extinguishment of debt | 2,373 | 0 | 274 |
Total other expenses, net | 47,760 | 39,164 | 37,699 |
Income before income taxes | 206,239 | 90,897 | 102,084 |
Income tax expense | (22,028) | (3,101) | (10,207) |
Net income | 184,211 | 87,796 | 91,877 |
Less: Net income attributable to noncontrolling interests | (724) | (12) | 0 |
Net income attributable to common stockholders | $ 183,487 | $ 87,784 | $ 91,877 |
Earnings per share: | |||
Net income per share available to common stockholders - basic (in dollars per share) | $ 0.91 | $ 0.43 | $ 0.46 |
Net income per share available to common stockholders - diluted (in dollars per share) | $ 0.90 | $ 0.43 | $ 0.46 |
Weighted-average number of common shares outstanding: | |||
Basic (in shares) | 202,009,750 | 205,462,911 | 200,784,450 |
Diluted (in shares) | 202,741,630 | 206,131,150 | 201,521,468 |
Rooms | |||
Revenues: | |||
Total revenue | $ 661,153 | $ 631,048 | $ 635,932 |
Operating Expenses: | |||
Operating expenses | 166,937 | 158,078 | 158,534 |
Food and beverage | |||
Revenues: | |||
Total revenue | 215,261 | 184,097 | 183,049 |
Operating Expenses: | |||
Operating expenses | 137,916 | 118,709 | 120,460 |
Other | |||
Revenues: | |||
Total revenue | 61,677 | 48,559 | 51,024 |
Operating Expenses: | |||
Operating expenses | 333,505 | 296,535 | 278,302 |
Management fees | |||
Operating Expenses: | |||
Operating expenses | 25,475 | 22,159 | 21,969 |
Franchise fees | |||
Operating Expenses: | |||
Operating expenses | $ 26,932 | $ 26,178 | $ 23,970 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total Stockholders' Equity | Noncontrolling interests |
Beginning Balance at Dec. 31, 2016 | $ 1,836,787 | $ 2,002 | $ 2,055,365 | $ (220,580) | $ 1,836,787 | $ 0 |
Beginning balance (in shares) at Dec. 31, 2016 | 200,200,902 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends per common share | (100,682) | 424 | (101,106) | (100,682) | ||
Issuance and vesting of common stock grants, net (in shares) | 105,831 | |||||
Share-based compensation | 5,663 | $ 1 | 5,662 | 5,663 | ||
Net income | 91,877 | 91,877 | 91,877 | |||
Ending Balance at Dec. 31, 2017 | 1,833,645 | $ 2,003 | 2,061,451 | (229,809) | 1,833,645 | 0 |
Ending balance (in shares) at Dec. 31, 2017 | 200,306,733 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends per common share | (103,340) | 465 | (103,705) | (103,240) | (100) | |
Issuance and vesting of common stock grants, net (in shares) | 141,165 | |||||
Share-based compensation | 4,642 | $ 1 | 4,531 | 110 | 4,642 | |
Redemption of Operating Partnership units | 7,784 | 7,784 | ||||
Sale of common stock (in shares) | 7,472,946 | |||||
Sale of common stock | 92,248 | $ 75 | 92,173 | 92,248 | ||
Common stock repurchased and retired (in shares) | (3,384,359) | |||||
Common stock repurchased and retired | (32,182) | $ (34) | (32,148) | (32,182) | ||
Net income | 87,796 | 87,784 | 87,784 | 12 | ||
Ending Balance at Dec. 31, 2018 | 1,890,593 | $ 2,045 | 2,126,472 | (245,620) | 1,882,897 | 7,696 |
Ending balance (in shares) at Dec. 31, 2018 | 204,536,485 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends per common share | (101,528) | 441 | (101,442) | (101,001) | (527) | |
Issuance and vesting of common stock grants, net (in shares) | 95,704 | |||||
Share-based compensation | 5,900 | $ 1 | 5,176 | 0 | 5,177 | 723 |
Common stock repurchased and retired (in shares) | (4,428,947) | |||||
Common stock repurchased and retired | (42,828) | $ (44) | (42,784) | (42,828) | ||
Net income | $ 184,211 | 183,487 | 183,487 | 724 | ||
Redemption of Operating Partnership units (in shares) | 4,553 | |||||
Redemption of Operating Partnership units | $ 0 | 44 | 44 | (44) | ||
Ending Balance at Dec. 31, 2019 | $ 1,921,062 | $ 2,002 | $ 2,089,349 | $ (178,861) | $ 1,912,490 | $ 8,572 |
Ending balance (in shares) at Dec. 31, 2019 | 200,207,795 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends per common share (in dollars per share) | $ 0.50 | $ 0.50 | $ 0.50 |
Dividends per unit (in dollars per share) | $ 0.125 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 184,211 | $ 87,796 | $ 91,877 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 118,110 | 104,524 | 99,090 |
Corporate asset depreciation as corporate expenses | 229 | 216 | 95 |
Loss on sale of hotel properties, net | 0 | 0 | 764 |
Loss on early extinguishment of debt | 2,373 | 0 | 274 |
Gain on property insurance settlement | (144,192) | (1,724) | 0 |
Non-cash lease expense and other amortization | 7,011 | 5,336 | 4,378 |
Non-cash interest rate swap fair value adjustment | 2,545 | 0 | 0 |
Amortization of debt issuance costs | 1,885 | 1,862 | 1,950 |
Impairment losses | 0 | 0 | 43,993 |
Estimated recovery of impairment losses from insurance | 0 | 0 | (40,784) |
Amortization of deferred income related to key money | (396) | (2,568) | (5,760) |
Share-based compensation | 6,385 | 5,573 | 6,201 |
Deferred income tax expense | 21,018 | 1,591 | 7,702 |
Changes in assets and liabilities: | |||
Prepaid expenses and other assets | (6,674) | 28,657 | (26,333) |
Due to/from hotel managers | (5,082) | (5,686) | 1,540 |
Accounts payable and accrued expenses | 5,866 | (7,997) | 17,006 |
Net cash provided by operating activities | 193,289 | 217,580 | 201,993 |
Cash flows from investing activities: | |||
Hotel acquisitions | 0 | (259,883) | (93,795) |
Proceeds from sale of properties, net | 0 | 0 | (764) |
Proceeds from property insurance | 133,529 | 32,466 | 10,042 |
Net cash used in investing activities | (65,730) | (342,588) | (181,941) |
Cash flows from financing activities: | |||
Scheduled mortgage debt principal payments | (14,195) | (13,612) | (12,417) |
Repurchase of common stock and other | (42,828) | (32,182) | 0 |
Proceeds from sale of common stock, net | 0 | 92,679 | 0 |
Repayments of mortgage debt | 0 | 0 | (170,368) |
Proceeds from unsecured term loan | 350,000 | 50,000 | 200,000 |
Repayments of unsecured term loans | (300,000) | 0 | 0 |
Draws on senior unsecured credit facility | 150,000 | 85,000 | 0 |
Repayments of senior unsecured credit facility | (75,000) | (85,000) | 0 |
Payment of financing costs | (4,805) | (412) | (1,579) |
Shares redeemed to satisfy tax withholdings on vested share-based compensation | (485) | (931) | (537) |
Distributions on common stock and units | (102,052) | (102,709) | (100,542) |
Net cash used in financing activities | (39,365) | (7,167) | (85,443) |
Net increase (decrease) in cash and cash equivalents, and restricted cash | 88,194 | (132,175) | (65,391) |
Cash, cash equivalents, and restricted cash beginning of year | 91,598 | 223,773 | 289,164 |
Cash, cash equivalents, and restricted cash, end of year | 179,792 | 91,598 | 223,773 |
Supplemental Disclosure of Cash Flow Information: | |||
Cash paid for interest | 43,742 | 38,548 | 36,288 |
Cash paid for income taxes | 1,470 | 2,208 | 3,251 |
Capitalized interest | 1,944 | 0 | 0 |
Non-cash cumulative effect of ASC 842 accounting standard adoption | 15,286 | 0 | 0 |
Non-cash Investing and Financing Activities: | |||
Loan assumed in hotel acquisition | 0 | 2,943 | 0 |
Issuance of Operating Partnership units in connection with acquisition of hotel property | 0 | 7,784 | 0 |
Redemption of Operating Partnership units for common stock | 44 | 0 | 0 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |||
Total cash, cash equivalents, and restricted cash | 91,598 | 91,598 | 289,164 |
Operating hotels | |||
Cash flows from investing activities: | |||
Capital expenditures for operating hotels | (102,660) | (109,447) | (97,424) |
Frenchman's Reef | |||
Cash flows from investing activities: | |||
Capital expenditures for operating hotels | $ (96,599) | $ (5,724) | $ 0 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2019 | |
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 many of our hotels are operated under a brand owned by one of the leading global lodging brand companies (Marriott International, Inc. (“Marriott”) or Hilton Worldwide (“Hilton”)). We are an owner, as opposed to an operator, of the hotels in our portfolio. As an owner, we receive all of the operating profits or losses generated by our hotels after we pay fees to the hotel managers, which are based on the revenues and profitability of the hotels. As of December 31, 2019 , we owned 31 hotels with 10,102 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 ( 2 ); Sedona, Arizona ( 2 ); Sonoma, California; South Lake Tahoe, California; Washington D.C. ( 2 ); St. Thomas, U.S. Virgin Islands; and Vail, Colorado. As of December 31, 2019 , the Frenchman's Reef & Morning Star Beach Resort (“Frenchman's Reef”) is currently 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, or subsidiaries of our operating partnership. The Company is the sole general partner of our operating partnership and owns either directly or indirectly 99.6% of the limited partnership units (“OP units”) of our operating partnership. The remaining 0.4% of the OP units are held by third parties, otherwise unaffiliated with the Company. See Note 5 for additional disclosures related to OP units. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation 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. Our operating partnership meets the criteria of a variable interest entity. The Company is the primary beneficiary and, accordingly, we consolidate our operating partnership. The Company’s sole significant asset is its investment in its operating partnership, and consequently, substantially all of the Company’s assets and liabilities represent those assets and liabilities of its operating partnership. In addition, all of the Company's debt is an obligation of its 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. Risks and Uncertainties The state of the overall economy can significantly impact hotel operational performance and thus, impact our financial position. Should any of our hotels experience a significant decline in operational performance, it may affect our ability to make distributions to our stockholders and service debt or meet other financial obligations. Fair Value Measurements In evaluating fair value, U.S. GAAP outlines a valuation framework and creates a fair value hierarchy that distinguishes between market assumptions based on market data (observable inputs) and a reporting entity’s own assumptions about market data (unobservable inputs). The hierarchy ranks the quality and reliability of inputs used to determine fair value, which are then classified and disclosed in one of the three categories. The three levels are as follows: • Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities • Level 2 - Inputs include quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets in markets that are not active and model-derived valuations whose inputs are observable • Level 3 - Model-derived valuations with unobservable inputs Property and Equipment Following the adoption of FASB Accounting Standards Update (“ASU”) No. 2017-01, investments in hotel properties, including related land, land improvements, building and furniture, fixtures and equipment and identifiable intangible assets are generally accounted for as asset acquisitions, which are recorded at total cost and allocated based on relative fair value. 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, current or projected losses from operations, and an expectation that the property is more likely than not to be sold significantly before the end of its useful life. 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 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 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 cease recording depreciation expense, and classify the assets and related liabilities as held for sale on the balance sheet. Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. Revenue Recognition Revenues from hotel operations are recognized when the goods or services are provided. Revenues consist of room sales, food and beverage sales, and other hotel department revenues, such as telephone, parking, gift shop sales and resort fees. Rooms revenue is recognized over the length of stay that the hotel room is occupied by the customer. Food and beverage revenue is recognized at the point in time in which the goods and/or services are rendered to the customer, such as for restaurant dining services or banquet services. 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. Advance deposits are recorded as liabilities 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 cancellation of the related reservation within an established period of time prior to the reservation. 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 REIT under the provisions of the Internal Revenue 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 existing taxable REIT subsidiary, or TRS, except for Frenchman’s Reef, which is owned by a Virgin Islands corporation, which we have elected to be treated as a TRS, and Cavallo Point, The Lodge at the Golden Gate (“Cavallo Point”), which is leased to a wholly owned subsidiary of the Company, which we have elected to be treated as a TRS. We had no accruals for tax uncertainties as of December 31, 2019 and 2018 . Intangible Assets and Liabilities Intangible assets or 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 contract 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. 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 stock grants 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. Share-Based Compensation We account for share-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. Comprehensive Income We do not have any comprehensive income other than net income. If we have any comprehensive income in future periods, such that a statement of comprehensive income would be necessary, such statement will be reported as one statement with the consolidated statement of operations. Derivative Instruments In the normal course of business, we are exposed to the effects of interest rate changes. We may enter into derivative instruments, including interest rate swaps and caps, to manage or hedge interest rate risk. Derivative instruments are recorded at fair value on the balance sheet date. Changes in the fair value of derivatives are recorded each period and are included in interest expense in the accompanying consolidated statements of operations. Noncontrolling Interests The noncontrolling interest is the portion of equity in our consolidated operating partnership not attributable, directly or indirectly, to the Company. Such noncontrolling interests are reported on the consolidated balance sheets within equity, separately from the Company’s equity. On the consolidated statements of operations, revenues, expenses and net income or loss from our less-than-wholly-owned operating partnership are reported within the consolidated amounts, including both the amounts attributable to the Company and noncontrolling interests. Income or loss is allocated to noncontrolling interests based on their weighted average ownership percentage for the applicable period. Consolidated statements of equity include beginning balances, activity for the period and ending balances for stockholders’ equity, noncontrolling interests and total equity. Restricted Cash Restricted cash primarily consists of cash held in reserve for replacement of furniture and fixtures generally held by our hotel managers and cash held in escrow pursuant to lender requirements. Debt Issuance Costs Financing costs are recorded at cost as a component of the debt carrying amount and consist of loan fees and other costs incurred in connection with the issuance of debt. Amortization of deferred financing costs is computed using a method that approximates the effective interest method over the remaining life of the debt and is included in interest expense in the accompanying consolidated statements of operations. Due to/from Hotel Managers The due from hotel managers consists of hotel level accounts receivable, periodic hotel operating distributions receivable from managers and prepaid and other assets held by the hotel managers on our behalf. The due to hotel managers represents liabilities incurred by the hotel on behalf of us in conjunction with the operation of our hotels which are legal obligations of the Company. Key Money Key money received in conjunction with entering into hotel management or franchise agreements or completing specific capital projects is deferred and amortized over the term of the hotel management agreement, the term of the franchise agreement, or other systematic and rational period, if appropriate. Deferred key money is classified as deferred income in the accompanying consolidated balance sheets and amortized as an offset to management fees or franchise fees. Leases We determine if an arrangement is a lease or contains an embedded lease at inception. For agreements with both lease and nonlease components (e.g., common-area maintenance costs), we do not separate the nonlease components from the lease components, but account for these components as one. We determine the lease classification (operating or finance) at lease inception. Right-of-use assets and lease liabilities are recognized based on the present value of the future lease payments over the lease term at the commencement date. The discount rate used to determine the present value of the lease payments is our incremental borrowing rate as of the lease commencement date, as the implicit rate is not readily determinable. The right-of-use assets also include any initial direct costs and any lease payments made at or before the commencement date, and is reduced for any unrestricted incentives received at or before the commencement date. Options to extend or terminate the lease are included in the recognition of our right-of-use assets and lease liabilities when it is reasonably certain that we will exercise the option. Variable payments that are based on an index or a rate are included in the recognition of our right-of-use assets and lease liabilities using the index or rate at lease commencement; however, changes to these lease payments due to rate or index updates are recorded as rent expense in the period incurred. Contingent rentals based on a percentage of sales in excess of stipulated amounts are not included in the measurement of the lease liability and right-of-use asset but will be recognized as variable lease expense when they are incurred. Leases that contain provisions that increase the fixed minimum lease payments based on previously incurred variable lease payments related to performance will be remeasured, as these payments now represent an increase in the fixed minimum payments for the remainder of the lease term. However, leases with provisions that increase minimum lease payments based on changes in a reference index or rate (e.g. Consumer Price Index) will not be remeasured as such changes do not constitute a resolution of a contingency. Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of our cash and cash equivalents. We maintain cash and cash equivalents with various financial institutions. We perform periodic evaluations of the relative credit standing of these financial institutions and limit the amount of credit exposure with any one institution. Segment Reporting Each one of our hotels is an operating segment. We evaluate each of our properties on an individual basis to assess performance, the level of capital expenditures, and acquisition or disposition transactions. Our evaluation of individual properties is not focused on property type (e.g. urban, suburban, or resort), brand, geographic location, or industry classification. We aggregate our operating segments using the criteria established by U.S. GAAP, including the similarities of our product offering, types of customers and method of providing service. All of our properties react similarly to economic stimulus, such as business investment, changes in Gross Domestic Product, and changes in travel patterns. As such, all our operating segments meet the aggregation criteria, resulting in a single reportable segment represented by our consolidated financial results. Accounting for Impacts 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 , Hurricane Irma caused significant damage to Frenchman's Reef and Havana Cabana Key West. Frenchman's Reef was further impacted by Hurricane Maria. The Company filed insurance claims for the remediation and repair of property damage and business interruption resulting from the hurricanes, as well as from the 2017 wildfires in Northern California that impacted The Lodge at Sonoma. In July 2018 , the Company settled the insurance claims for Havana Cabana Key West and The Lodge at Sonoma. The Havana Cabana Key West insurance claim was settled for $8.3 million , net of deductibles, and we recorded a gain of approximately $1.7 million related to the property damage. The Lodge at Sonoma claim was settled for $1.3 million , net of deductibles. In June 2019 , the Company settled the insurance claim for Frenchman's Reef related to the damages caused by Hurricane Maria for $1.4 million . In December 2019 , the Company settled the insurance claim related to Hurricane Irma for total insurance payments of $246.8 million , of which $238.5 million related to Frenchman's Reef and $8.3 million related to amounts previously agreed to for the Havana Cabana Key West. The settlement amount includes proceeds previously received of $85.0 million and $10.0 million during the years ended December 31, 2018 and 2017 , respectively. We received $142.5 million , $85.0 million and $10.0 million in insurance proceeds during the years ended December 31, 2019 , 2018 and 2017, respectively. Subsequent to December 31, 2019 , we received the remaining $10.7 million committed insurance proceeds related to the Hurricane Irma settlement. For the year ended December 31, 2019 , we recognized a $144.2 million gain related to the settlement of the property damage insurance claim at Frenchman's Reef. For the year ended December 31, 2018 , we recognized a $1.7 million gain related to the settlement of the property damage insurance claim at the Havana Cabana Key West. The following table summarizes the business interruption insurance income by impacted hotel property (in thousands): Year Ended December 31, 2019 2018 2017 Frenchman's Reef $ 8,822 $ 16,090 $ 3,128 Havana Cabana Key West — 2,137 923 The Lodge at Sonoma — 1,152 — Total $ 8,822 $ 19,379 $ 4,051 Recently Issued Accounting Pronouncements 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 right-of-use assets and lease liabilities. This standard is effective for annual reporting periods beginning after December 15, 2018. We adopted ASU No. 2016-02, along with its related clarifications and amendments (collectively, “ASC 842”), on January 1, 2019. Our consolidated financial statements as of December 31, 2019 are presented in accordance with ASC 842. The primary impact of the new standard is to the treatment of our ground leases, which represent the majority of all of our operating lease payments. Upon adoption, our right-of-use assets were adjusted for deferred rent and favorable and unfavorable lease intangible amounts included on our balance sheet as of December 31, 2018 . On January 1, 2019, we recognized lease liabilities totaling $101.2 million and right-of-use assets totaling $99.6 million . |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment as of December 31, 2019 and 2018 consists of the following (in thousands): 2019 2018 Land $ 617,695 $ 617,695 Land improvements 7,994 7,994 Buildings 2,751,590 2,682,320 Furniture, fixtures and equipment 534,802 491,421 Construction in progress 126,464 38,623 4,038,545 3,838,053 Less: accumulated depreciation (1,011,776 ) (893,436 ) $ 3,026,769 $ 2,944,617 As of December 31, 2019 and 2018 , we had accrued capital expenditures of $13.1 million and $12.4 million , respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases We are subject to operating leases, the most significant of which are ground leases. We are the lessee to ground leases under nine of our hotels and one parking garage. The lease liabilities for our operating leases assume the exercise of all available extension options, as we believe they are reasonably certain to be exercised. Additional information regarding the terms of our ground leases can be found in Note 12. As of December 31, 2019 , our operating leases have a weighted-average remaining lease term of 66 years and a weighted-average discount rate of 5.77% . The components of operating lease expense, which is included in other hotel expenses in our consolidated statements of operations, and cash paid for amounts included in the measurement of lease liabilities, are as follows (in thousands): Year Ended December 31, 2019 Operating lease cost $ 11,248 Variable lease payments $ 1,466 Cash paid for amounts included in the measurement of operating lease liabilities $ 3,239 Maturities of lease liabilities are as follows (in thousands): Year Ending December 31, As of December 31, 2019 2020 $ 3,315 2021 4,805 2022 3,940 2023 3,997 2024 3,976 Thereafter 759,124 Total lease payments 779,157 Less imputed interest (675,532 ) Total lease liabilities $ 103,625 The future minimum annual rental commitments under all non-cancelable operating leases in effect as of December 31, 2018 as determined prior to the adoption of ASC 842 and its related practical expedients, are as follows (in thousands): Year Ending December 31, As of December 31, 2018 2019 $ 5,232 2020 4,866 2021 6,132 2022 5,122 2023 5,096 Thereafter 636,770 $ 663,218 |
Equity
Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Equity | Equity Common Shares We are authorized to issue up to 400 million shares of common stock, $0.01 par value per share. Each outstanding share of common stock entitles the holder to one vote on all matters submitted to a vote of stockholders. Holders of our common stock are entitled to receive dividends out of assets legally available for the payment of dividends when authorized by our board of directors. We have an “at-the-market” equity offering program (the “ATM Program”), pursuant to which we may issue and sell shares of our common stock from time to time, having an aggregate offering price of up to $200 million . We did not sell any shares of common stock during the year ended December 31, 2019 , and the full amount remains available under the ATM Program. Our board of directors has approved a share repurchase program authorizing us to repurchase shares of our common stock having an aggregate price of up to $250 million . 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 will depend on a variety of factors including stock price, corporate and regulatory requirements, market conditions, and other corporate liquidity requirements and priorities. The share repurchase program may be suspended or terminated at any time without prior notice. During the year ended December 31, 2019 , we repurchased 4,428,947 shares of our common stock at an average price of $9.65 per share for a total purchase price of $42.8 million . We retired all repurchased shares on their respective settlement dates. As of February 28, 2020 , we have $175.2 million of authorized capacity remaining under our share repurchase program. 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 December 31, 2019 and 2018 , there were no shares of preferred stock outstanding. Operating Partnership Units In connection with the acquisition of Cavallo Point in December 2018 , we issued 796,684 OP units to third parties, otherwise unaffiliated with the Company, at $11.76 per unit. Each OP unit is redeemable at the option of the holder. Holders of OP units have certain redemption rights, which enable them to cause our operating partnership to redeem their units in exchange for cash per unit equal to the market price of our common stock, at the time of redemption, or, at our option, for shares of our common stock on a one -for-one basis, subject to adjustment upon the occurrence of stock splits, mergers, consolidations or similar pro-rata share transactions. As of December 31, 2019 , there were 792,131 OP units held by unaffiliated third parties. Long-Term Incentive Partnership units (“LTIP units”), which are also referred to as profits interest units, may be issued to eligible participants under the 2016 Plan (as defined in Note 6 below) for the performance of services to, or for the benefit of, our operating partnership. LTIP units are a class of partnership unit in our operating partnership and will receive, whether vested or not, the same per-unit distributions as the outstanding common OP units, which equal per-share dividends on shares of our common stock. Initially, LTIP units have a capital account balance of zero, do not receive an allocation of operating income (loss), and do not have full parity with common OP units with respect to liquidating distributions. If such parity is reached, vested LTIP units may be converted, at any time, into an equal number of common OP units, and thereafter will possess all of the rights and interests of common OP units, including the right to exchange the common OP units 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, subject to adjustment upon the occurrence of stock splits, mergers, consolidations or similar pro-rata share transactions. See Note 6 for additional disclosures related to LTIP units. Dividends and Distributions We have paid the following dividends to holders of our common stock and distributions to holders of OP units and LTIP units for the years ended December 31, 2019 and 2018 , and through the date of this report: Payment Date Record Date Distributions per Common Share/Unit April 12, 2018 March 29, 2018 $0.125 July 12, 2018 June 29, 2018 $0.125 October 12, 2018 September 28, 2018 $0.125 January 14, 2019 January 4, 2019 $0.125 April 12, 2019 March 29, 2019 $0.125 July 12, 2019 June 28, 2019 $0.125 October 11, 2019 September 30, 2019 $0.125 January 13, 2020 January 2, 2020 $0.125 |
Stock Incentive Plans
Stock Incentive Plans | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [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 1,351,686 shares as of December 31, 2019 . In addition to these shares, additional shares of common stock could be issued in connection with the performance stock unit awards as further described below. Restricted Stock Awards Restricted stock awards issued to our officers and employees generally vest over a 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 consolidated statements of operations. A summary of our restricted stock awards from January 1, 2017 to December 31, 2019 is as follows: Number of Shares Weighted- Average Grant Date Fair Value Unvested balance at January 1, 2017 567,540 $ 10.62 Granted 324,502 11.19 Forfeited (16,669 ) 10.80 Vested (244,411 ) 11.29 Unvested balance at December 31, 2017 630,962 10.66 Granted 349,091 10.19 Forfeited (51,061 ) 10.44 Vested (287,148 ) 11.02 Unvested balance at December 31, 2018 641,844 10.25 Granted 162,806 10.38 Forfeited (21,534 ) 10.37 Vested (310,117 ) 10.08 Unvested balance at December 31, 2019 472,999 $ 10.40 The remaining share awards are expected to vest as follows: 237,866 during 2020 , 139,152 during 2021 , 32,005 during 2022 , and 63,976 during 2023 . As of December 31, 2019 , the unrecognized compensation cost related to restricted stock awards was $2.9 million and the weighted-average period over which the unrecognized compensation expense will be recorded is approximately 22 months. For the years ended December 31, 2019 , 2018 , and 2017 , we recorded $2.6 million , $3.1 million and $3.1 million , respectively, of compensation expense related to restricted stock awards. Performance Stock Units Performance stock units (“PSUs”) are restricted stock units that vest three years from the date of grant. Each executive officer is granted a target number of PSUs (the “PSU Target Award”). The actual number of shares of common stock issued to each executive officer is based on the Company’s performance as measured by two metrics: (1) relative total stockholder return and (2) hotel market share improvement. The achievement of certain levels of total stockholder return relative to the total stockholder return of a peer group of publicly-traded lodging REITs is measured over a three -year performance period. There is no payout of shares of our common stock if our total stockholder return falls below the 30 th percentile of the total stockholder returns of the peer group. The maximum number of shares of common stock issued to an executive officer is equal to 150% of the PSU Target Award and is earned if our total stockholder return is equal to or greater than the 75 th percentile of the total stockholder returns of the peer group. The improvement in market share for each of our hotels is measured over a 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. The ratio of total PSUs issued to executive officers is divided between the two metrics as follows: Grant Year Vesting Year Total Shareholder Return Hotel Market Share 2014 2017 100 % — % 2015 2018 100 % — % 2016 2019 75 % 25 % 2017 2020 50 % 50 % 2018 2021 50 % (1) 50 % 2019 2022 50 % (1) 50 % ______________________ (1) The number of PSUs to be earned is limited to target if the Company's total stockholder return is negative for the 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 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. The determination of the grant-date fair values of outstanding awards based on our relative total stockholder return included the following assumptions: Award Grant Date Volatility Risk-Free Rate Fair Value at Grant Date February 26, 2017 26.7 % 1.46 % $ 10.89 March 2, 2018 26.9 % 2.40 % $ 9.52 April 2, 2018 26.9 % 2.37 % $ 9.00 March 1, 2019 24.3 % 2.54 % $ 9.68 A summary of our PSUs from January 1, 2017 to December 31, 2019 is as follows: Number of Weighted- Unvested balance at January 1, 2017 686,684 $ 10.65 Granted 266,009 11.04 Additional units from dividends 33,478 11.17 Vested (1) (200,374 ) 12.15 Unvested balance at December 31, 2017 785,797 10.42 Granted 293,111 9.82 Additional units from dividends 35,197 11.24 Vested (2) (218,514 ) 11.98 Forfeited (113,668 ) 9.86 Unvested balance at December 31, 2018 781,923 11.19 Granted 296,050 10.14 Additional units from dividends 40,662 10.00 Vested (3) (251,375 ) 8.80 Forfeited (70,728 ) 9.93 Unvested balance at December 31, 2019 796,532 $ 11.16 ______________________ (1) There was no payout of shares of our common stock for PSUs that vested on February 27, 2017, as our total stockholder return fell below the 30th percentile of the total stockholder returns of the peer group over the three-year performance period. (2) The number of shares of common stock earned for the PSUs vested in 2018 was equal to 51.75% of the PSU Target Award (3) The number of shares of common stock earned for the PSUs vested in 2019 was equal to 74.33% of the PSU Target Award. The remaining unvested target units are expected to vest as follows: 243,022 during 2020 , 287,477 during 2021 and 266,033 during 2022 . As of December 31, 2019 , the unrecognized compensation cost related to the PSUs was $3.0 million and is expected to be recognized on a straight-line basis over a period of 21 months . For the years ended December 31, 2019 , 2018 , and 2017 , we recorded approximately $2.4 million , $1.9 million , and $2.5 million , respectively, of compensation expense related to the PSUs. The compensation expense recorded for the year ended December 31, 2018 includes the reversal of $1.0 million of previously recognized compensation expense resulting from the forfeiture of PSUs by our former Executive Vice President and Chief Financial Officer. LTIP Units During the first quarter of 2019, instead of granting restricted stock for the time-based portion of the annual long-term incentive award, we granted LTIP units to our executive officers. LTIP units are designed to offer executives a long-term incentive comparable to restricted stock, while allowing them a more favorable income tax treatment. Each LTIP unit awarded is deemed equivalent to an award of one share of common stock reserved under the 2016 Plan. At the time of award, LTIP units do not have full economic parity with common OP units, but can achieve such parity over time upon the occurrence of specified events in accordance with partnership tax rules. A summary of our LTIP units from January 1, 2019 to December 31, 2019 is as follows: Number of Weighted- Unvested balance at January 1, 2019 — $ — Granted 281,925 10.65 Forfeited (37,559 ) 10.65 Unvested balance at December 31, 2019 244,366 $ 10.65 During the year ended December 31, 2019 , we granted 281,925 LTIP units to executive officers, which had a weighted-average grant date fair value of $10.65 per unit. There are currently no vested LTIP units outstanding. The LTIP units are expected to vest ratably in 2020, 2021, and 2022. As of December 31, 2019 , the unrecognized compensation cost related to LTIP unit awards was $1.9 million and the weighted-average period over which the unrecognized compensation expense will be recorded is approximately 26 months. We recorded $0.7 million of compensation expense related to LTIP unit awards for the year ended December 31, 2019 . We did no t record any compensation expense related to LTIP unit awards during 2018 or 2017 . |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
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 by the weighted-average number of common shares outstanding including dilutive securities. Unvested share-based awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per share pursuant to the two-class method. Accordingly, distributed and undistributed earnings attributable to unvested share-based compensation (participating securities) have been excluded, as applicable, from net income or loss available to common stockholders used in the basic and diluted earnings per share calculations. The following is a reconciliation of the calculation of basic and diluted earnings per share (in thousands, except share and per-share data): Years Ended December 31, 2019 2018 2017 Numerator: Net income attributable to common stockholders $ 183,487 $ 87,784 $ 91,877 Distributions declared on unvested share-based compensation (132 ) — — Net income available to common stockholders $ 183,355 $ 87,784 $ 91,877 Denominator: Weighted-average number of common shares outstanding—basic 202,009,750 205,462,911 200,784,450 Effect of dilutive securities: Unvested restricted common stock 156,146 215,655 188,759 Shares related to unvested PSUs 575,734 452,584 548,259 Weighted-average number of common shares outstanding—diluted 202,741,630 206,131,150 201,521,468 Earnings per share: Net income per share available to common stockholders—basic $ 0.91 $ 0.43 $ 0.46 Net income per share available to common stockholders—diluted $ 0.90 $ 0.43 $ 0.46 The common OP units held by the noncontrolling interest holders have been excluded from the denominator of the diluted earnings per share calculation as there would be no effect on the amounts since the OP units' share of income or loss would also be added or subtracted to derive net income (loss) available to common stockholders. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table sets forth information regarding the Company’s debt as of December 31, 2019 and 2018 (dollars in thousands): Principal Balance as of December 31, Loan Interest Rate Maturity Date 2019 2018 Salt Lake City Marriott Downtown mortgage loan 4.25 % November 2020 $ 53,273 $ 55,032 Westin Washington D.C. City Center mortgage loan 3.99 % January 2023 60,550 62,734 The Lodge at Sonoma, a Renaissance Resort & Spa mortgage loan 3.96 % April 2023 26,963 27,633 Westin San Diego mortgage loan 3.94 % April 2023 61,851 63,385 Courtyard Manhattan / Midtown East mortgage loan 4.40 % August 2024 81,107 82,620 Renaissance Worthington mortgage loan 3.66 % May 2025 80,904 82,540 JW Marriott Denver at Cherry Creek mortgage loan 4.33 % July 2025 61,253 62,411 Boston Westin mortgage loan 4.36 % November 2025 190,725 194,466 New Market Tax Credit loan (1) 5.17 % December 2020 2,943 2,943 Unamortized debt issuance costs (3,240 ) (4,017 ) Total mortgage and other debt, net of unamortized debt issuance costs 616,329 629,747 Unsecured term loan LIBOR + 1.45% (2) May 2021 — 100,000 Unsecured term loan LIBOR + 1.45% (2) April 2022 — 200,000 Unsecured term loan LIBOR + 1.40% (3) October 2023 50,000 50,000 Unsecured term loan LIBOR + 1.40% (4) July 2024 350,000 — Unamortized debt issuance costs (1,230 ) (1,781 ) Unsecured term loans, net of unamortized debt issuance costs 398,770 348,219 Senior unsecured credit facility LIBOR + 1.45% July 2023 (5) 75,000 — Total debt, net of unamortized debt issuance costs $ 1,090,099 $ 977,966 Weighted-Average Interest Rate 3.81% _____________ (1) Assumed in connection with the acquisition of the Hotel Palomar Phoenix on March 1, 2018 . (2) The loan was prepaid on July 25, 2019 in connection with the refinancing described below under the heading "Unsecured Term Loans." (3) We entered into an interest rate swap agreement on January 7, 2019 to fix LIBOR at 2.41% through October 2023 . (4) We entered into an interest rate swap agreement on July 25, 2019 to fix LIBOR at 1.70% through July 2024 for $175 million of the loan. (5) The credit facility may be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions. On July 25, 2019 , the credit facility was amended to increase capacity to $400 million and extend maturity to July 2023 . The aggregate debt maturities as of December 31, 2019 are as follows (in thousands): 2020 $ 69,116 2021 13,518 2022 14,096 2023 194,650 2024 432,381 Thereafter 295,808 $ 1,019,569 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 pledged assets; however, in the event of fraud, misapplication of funds or other customary recourse provisions, the lender may seek payment from us. As of December 31, 2019 , eight of our 31 hotel properties 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 December 31, 2019 , 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 Prior to July 25, 2019 , we were party to a senior unsecured credit facility with a capacity up to $300 million with an accordion feature to expand up to $600 million , subject to lender consent. The maturity date was in May 2020 and the interest rate on the facility was based on a pricing grid ranging from 150 to 225 basis points over LIBOR, based on the Company's leverage ratio. On July 25, 2019 , we entered into a Fifth Amended and Restated Credit Agreement (the “Credit Agreement”). The Credit Agreement increased the capacity of our senior unsecured credit facility (the “Revolving Credit Facility”) from $300 million to $400 million , decreased the pricing grid and extended the maturity date from May 2020 to July 2023 . The maturity date may be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions. The interest rate on the Revolving Credit 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 30% 1.40% Greater than 30% but less than or equal to 35% 1.45% Greater than 35% but less than or equal to 40% 1.50% Greater than 40% but less than or equal to 45% 1.55% Greater than 45% but less than or equal to 50% 1.70% Greater than 50% but less than or equal to 55% 1.90% Greater than 55% 2.05% In addition to the interest payable on amounts outstanding under the Revolving Credit Facility, we are required to pay an amount equal to 0.20% of the unused portion of the Revolving Credit Facility if the average usage of the facility was greater than 50% or 0.30% of the unused portion of the Revolving Credit Facility if the average usage of the facility was less than or equal to 50% . The Revolving Credit Facility also contains various corporate financial covenants. A summary of the most restrictive covenants is as follows: Actual at Covenant December 31, 2019 Maximum leverage ratio (1) 60% 28.5% Minimum fixed charge coverage ratio (2) 1.50x 3.49x Secured recourse indebtedness Less than 45% of Total Asset Value 18.6% Unencumbered leverage ratio 60.0% 26.0% Unencumbered implied debt service coverage ratio 1.20x 2.84x _____________________________ (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. As of December 31, 2019 , we had $75 million in borrowings outstanding under the Revolving Credit Facility and the Company's leverage ratio was 28.5% . Accordingly, interest on our borrowings under the Revolving Credit Facility will be based on LIBOR plus 140 basis points for the following quarter. We incurred interest and unused credit facility fees on the applicable facility of $3.7 million , $1.2 million and $1.0 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Subsequent to December 31, 2019 , we repaid the $75 million outstanding under the Revolving Credit Facility. Unsecured Term Loans We are party to two five -year unsecured term loans. In connection with the Credit Agreement described above, we entered into a new five-year, $350 million unsecured term loan (the “Term Loan Facility”). We are also party to a $50 million unsecured term loan. In connection with the Term Loan Facility, we repaid the previously existing $100 million and $ 200 million unsecured term loans. In connection with the repayment of these term loans, we recorded a $2.4 million loss on early extinguishment of debt during the year ended December 31, 2019 , which related to the write-off of unamortized debt issuance costs. The Credit Agreement includes the right to increase the Revolving Credit Facility and Term Loan Facility in aggregate up to $1.2 billion , subject to lender approval. The financial covenants of the two term loans are consistent with the covenants on our Revolving Credit Facility, which are described above. In connection with the transaction in July 2019 , we also amended the outstanding $50 million term loan to align the pricing grid and certain other terms with the Credit Agreement. The interest rate on each of the term loans is based on LIBOR, plus an applicable margin based on the Company’s leverage ratio, as follows: Leverage Ratio Applicable Margin Less than or equal to 30% 1.35% Greater than 30% but less than or equal to 35% 1.40% Greater than 35% but less than or equal to 40% 1.45% Greater than 40% but less than or equal to 45% 1.50% Greater than 45% but less than or equal to 50% 1.65% Greater than 50% but less than or equal to 55% 1.85% Greater than 55% 2.00% As of December 31, 2019 , the Company's leverage ratio was 28.5% Accordingly, interest on our borrowings under the term loans will be based on LIBOR plus 135 basis points for the following quarter. On January 7, 2019 , we entered into an interest rate swap agreement to fix LIBOR at 2.41% through maturity for the $50 million unsecured term loan. We entered into an interest rate swap agreement on July 25, 2019 to fix LIBOR at 1.70% through maturity for $175 million of the Term Loan Facility. We incurred interest on the term loans of $13.7 million , $ 10.6 million and $6.2 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions We had no acquisitions during the year ended December 31, 2019 . 2018 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, direct acquisition costs were capitalized. 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 were capitalized. 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. Refer to Note 12 for additional information about this lease. 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 comparable market ground lease. Accordingly, we allocated $20.0 million of the total acquisition cost to a favorable ground lease asset. Upon adoption of ASC 842 on January 1, 2019, the right-of-use asset was adjusted for the unamortized balance of this favorable lease asset. 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 extension options. 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 allocated $4.6 million of the total acquisition cost to an unfavorable agreement liability that will be amortized over the remaining term of the parking agreement, including all extension options. On December 12, 2018 , we acquired the 142 -room Cavallo Point for a total contractual purchase price of $152 million . The acquisition was funded through a combination of corporate cash, proceeds from the new $50 million unsecured term loan and the issuance of OP units. The acquisition is accounted for as an acquisition of assets; accordingly, our direct acquisition costs were capitalized. Cavallo Point is subject to a long-term ground lease agreement with the United States National Park Service that expires in 2066 . Refer to Note 12 for additional information about this lease. We reviewed the terms of the ground lease and concluded that the terms of the ground lease are favorable to us compared with a comparable market ground lease. Accordingly, we allocated $17.9 million of the total acquisition cost to a favorable ground lease asset. Upon adoption of ASC 842 on January 1, 2019, the right-of-use asset was adjusted for the unamortized balance of this favorable lease asset. The following table summarizes the assets acquired and liabilities assumed in our 2018 acquisitions (in thousands): Cavallo Point Landing Resort & Spa Hotel Palomar Phoenix Land $ — $ 14,816 $ — Building and improvements 123,100 24,351 59,703 Furniture, fixtures and equipment 10,470 3,346 5,207 Construction in progress 1,734 — — Total fixed assets 135,304 42,513 64,910 Favorable lease asset 17,907 — 20,012 Unfavorable lease liability — — (4,644 ) New Market Tax Credit loan assumption — — (2,943 ) Other assets and liabilities, net (5,083 ) (658 ) 497 Total $ 148,128 $ 41,855 $ 77,832 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We have elected to be treated as a REIT under the provisions of the Internal Revenue 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 are subject to federal, state, local and/or foreign income taxes. Our provision for income taxes consists of the following (in thousands): Year Ended December 31, 2019 2018 2017 Current - Federal $ 420 $ 66 $ 622 State 541 984 1,221 Foreign 49 460 662 1,010 1,510 2,505 Deferred - Federal 80 1,857 6,432 State 132 178 425 Foreign 20,806 (444 ) 845 21,018 1,591 7,702 Income tax provision $ 22,028 $ 3,101 $ 10,207 A reconciliation of the statutory federal tax provision to our income tax provision is as follows (in thousands): Year Ended December 31, 2019 2018 2017 Statutory federal tax provision (1) $ 43,313 $ 19,089 $ 35,729 Tax impact of REIT election (14,125 ) (14,439 ) (22,277 ) State income tax provision, net of federal tax benefit 532 705 1,652 Foreign income tax benefit (6,998 ) (2,927 ) (430 ) Tax reform impact on U.S. taxes — — (2,143 ) Tax reform impact on foreign taxes — — (2,076 ) Other (694 ) 673 (248 ) Income tax provision $ 22,028 $ 3,101 $ 10,207 _____________________________ (1) Beginning January 1, 2018, the U.S. federal income tax rate decreased from 35% to 21% . On December 22, 2017, the U.S. government enacted comprehensive tax legislation, H.R. 1, originally known as the Tax Cuts and Jobs Act (the “Tax Act”). Among other changes to the U.S. tax code, the Tax Act reduced the U.S. federal corporate income tax rate to 21%, and required companies to pay a one-time transition tax on certain unrepatriated earnings (where applicable) of foreign subsidiaries with an election option to defer the transition tax over eight years. Accordingly, our federal net deferred tax liabilities as of December 31, 2017 have been remeasured using a U.S. federal income tax rate of 21% that is effective beginning on January 1, 2018, to reflect the effects of the enacted changes in tax rates at the date of enactment based on the applicable enacted tax rate when the temporary differences and carryforwards are expected to reverse. The impact of this remeasurement is a decrease to net deferred tax liabilities and a decrease to the deferred income tax provision in 2017 of approximately $4.2 million . Additionally, we elected to defer the transition tax inclusion of approximately $17.8 million into REIT taxable income related to the deemed mandatory repatriation of foreign earnings and profits of the Frenchman's Reef & Morning Star Beach Resort (located in the U.S. Virgin Islands) over the eight-year period allowed under the Tax Act. The transition tax increased our 2017 REIT taxable income in 2017 by approximately $1.5 million . The remaining deferred transition tax inclusion was included in our 2018 REIT taxable income. We are required to pay franchise taxes in certain jurisdictions. We recorded approximately $0.3 million of franchise taxes during the years ended December 31, 2019 and 2018 and $0.2 million of franchise taxes during the year ended December 31, 2017 . These franchise taxes are classified as corporate expenses in the accompanying consolidated statements of operations. Deferred income taxes are recognized for temporary differences between the financial reporting bases of assets and liabilities and their respective tax bases and for operating loss and tax credit carryforwards based on enacted tax rates expected to be in effect when such amounts are paid. However, deferred tax assets are recognized only to the extent that it is more likely than not that they will be realizable based on consideration of available evidence, including future reversals of existing taxable temporary differences, projected future taxable income and tax planning strategies. Deferred tax assets are included in prepaid and other assets and deferred tax liabilities are included in accounts payable and accrued expenses on the accompanying consolidated balance sheets. The total deferred tax assets and liabilities are as follows (in thousands): 2019 2018 Federal Net operating loss carryforwards $ — $ 1,983 Deferred income related to key money 2,382 2,465 Alternative minimum tax credit carryforwards — 103 Other 529 326 Depreciation and amortization (7,928 ) (9,188 ) Federal - Deferred tax (liabilities) assets, net $ (5,017 ) $ (4,311 ) State Net operating loss carryforwards $ 2,572 $ 2,975 Deferred income related to key money 735 780 Alternative minimum tax credit carryforwards 80 80 Other 167 103 Depreciation and amortization (2,446 ) (2,906 ) Less: Valuation allowance (700 ) (700 ) State - Deferred tax assets, net $ 408 $ 332 Foreign (USVI) Deferred income related to key money $ — $ — Depreciation and amortization (21,060 ) (255 ) Other — — Land basis recorded in purchase accounting (2,617 ) (2,617 ) Foreign - Deferred tax liabilities, net $ (23,677 ) $ (2,872 ) As of December 31, 2019 , we had deferred tax assets of $2.6 million consisting of state net operating loss carryforwards. The state loss carryforwards generally expire in 2022 through 2034 if not utilized by then. The Company analyzes state loss carryforwards on a state by state basis and records a valuation allowance when we deem it more likely than not that future results will not generate sufficient taxable income in the respective state to realize the deferred tax asset prior to the expiration of the loss carryforwards. As of December 31, 2019 , we have a $0.7 million valuation allowance on the deferred tax asset related to the Illinois and Georgia state loss carryforwards. The Frenchman's Reef & Morning Star Beach Resort is owned by a subsidiary that has elected to be treated as a TRS, and is subject to U.S. Virgin Islands (“USVI”) income taxes. We are party to a tax agreement with the USVI that reduces the income tax rate to approximately 4.4% . In December 2019, we were granted a modification to the tax agreement that reduces the income tax rate to approximately 2.3% |
Relationships with Managers and
Relationships with Managers and Franchisors | 12 Months Ended |
Dec. 31, 2019 | |
Relationships With Managers [Abstract] | |
Relationships with Managers and Franchisors | Relationships with Managers and Franchisors We are party to hotel management agreements for each of our hotels owned. Under our hotel management agreements, the hotel manager receives a base management fee and, if certain financial thresholds are met or exceeded, an incentive management fee. The base management fee is generally payable as a percentage of gross hotel revenues for each fiscal year. The incentive management fee is generally based on hotel operating profits, but the fee only applies to that portion of hotel operating profits above a negotiated return on our invested capital, which we refer to as the owner's priority. We refer to this excess of operating profits over the owner's priority as “available cash flow.” The following is a summary of management fees for the years ended December 31, 2019 , 2018 and 2017 (in thousands): Year Ended December 31, 2019 2018 2017 Base management fees $ 21,712 $ 20,467 $ 22,265 Incentive management fees 5,705 5,805 6,259 Amortization of deferred income related to key money (227 ) (2,398 ) (4,840 ) Amortization of unfavorable contract liabilities (1,715 ) (1,715 ) (1,715 ) Total management fees, net $ 25,475 $ 22,159 $ 21,969 Eight of our hotels earned incentive management fees for the year ended December 31, 2019 . Nine of our hotels earned incentive management fees for the year ended December 31, 2018 . Ten of our hotels earned incentive management fees for the year ended December 31, 2017 . Performance Termination Provisions Our management agreements provide us with termination rights upon a manager's failure to meet certain financial performance criteria and manager's decision not to cure the failure by making a cure payment. Key Money Our managers and franchisors have contributed to us certain amounts in exchange for the right to manage or franchise hotels we have acquired and in connection with the completion of certain brand enhancing capital projects. We refer to these amounts as “key money.” Key money is classified as deferred income in the accompanying consolidated balance sheets and amortized against management fees or franchise fees on the accompanying consolidated statements of operations. We amortized $0.4 million of key money during the year ended December 31, 2019 , $2.6 million during the year ended December 31, 2018 , and $5.8 million during the year ended December 31, 2017 . In connection with a change in hotel manager of the Courtyard Manhattan/Midtown East, we recognized $1.9 million of accelerated amortization of key money provided to us by the previous hotel manager during the year ended December 31, 2017 . In connection with the termination of the management agreement for Frenchman's Reef, we accelerated the amortization of key money received from the hotel manager from the date of our notice of termination in 2017 through the effective termination date of February 20, 2018 . We recognized an additional $2.6 million of amortization of key money during the year ended December 31, 2017 in connection with this acceleration. The remaining $2.2 million was amortized during the first quarter of 2018 . During 2015 , Starwood provided us with $3.0 million of key money in connection with our renovation associated with the brand conversion of the hotel formerly known as the Conrad Chicago to The Gwen, a Luxury Collection Hotel. The key money was amortized against franchise fees over the period of the renovation, which was January 2016 through April 2017 . Franchise Agreements We have franchise agreements for 14 of our hotels as of December 31, 2019 . Pursuant to these franchise agreements, we pay franchise fees based on a percentage of gross room sales, and, under certain agreements, a percentage based on gross food and beverage sales. Further, we pay certain other fees for marketing and reservation services. The following is a summary of franchise fees for the years ended December 31, 2019 , 2018 and 2017 (in thousands): Year Ended December 31, 2019 2018 2017 Franchise fees $ 27,102 $ 26,348 $ 24,890 Amortization of deferred income related to key money (1) (170 ) (170 ) (920 ) Total franchise fees, net $ 26,932 $ 26,178 $ 23,970 _____________________________ (1) Relates to key money received for the Lexington Hotel New York. In October 2019, we entered into a franchise agreement with Marriott for Frenchman's Reef. The franchise agreement expires on the 20th anniversary of the hotel's opening date. Subsequent to December 31, 2019 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
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 the Company as a result of the damage caused to Frenchman's Reef by Hurricane Irma. 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. In December 2019, the Company and each of the insurers remaining in the lawsuit settled the claim for $246.8 million , of which $238.5 million related to Frenchman's Reef and $8.3 million related to amounts previously agreed to for the Havana Cabana Key West. The settlement amount includes proceeds previously received of $85.0 million and $10.0 million during the years ended December 31, 2018 and 2017 , respectively. As of February 28, 2020 , the Company has received all the proceeds of the settlement and the suit has been dismissed in both St. Thomas, U.S. Virgin Islands and New York. Other Matters 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 proactively worked with the franchisor and the manager of the hotel and developed and executed a plan aimed to improve guest satisfaction scores. Recently, through negotiation and agreement with the franchisor, the Company received a “clean slate” letter for this hotel and is no longer in default under the franchise agreement. Restricted Cash As of December 31, 2019 and 2018 , we had $57.3 million and $47.7 million , respectively, of restricted cash, which consists of reserves for replacement of furniture and fixtures generally held by our hotel managers and cash held in escrow pursuant to lender requirements. Ground Leases Additional information regarding our leases can be found in Note 4. Seven of our hotels are subject to ground lease agreements that cover all of the land underlying the respective hotel: • The Bethesda Marriott Suites hotel is subject to a ground lease that runs until 2087 . There are no renewal options. • The Courtyard Manhattan/Fifth Avenue is subject to a ground lease that runs until 2085 , inclusive of one 49 -year renewal option. • The Salt Lake City Marriott Downtown is subject to two ground leases: one ground lease covers the land under the hotel and the other ground lease covers the portion of the hotel that extends into the adjacent City Creek Project. We own a 21% interest in the land under the hotel. The term of the ground lease covering the land under the hotel runs through 2056 , inclusive of renewal options. The term of the ground lease covering the extension into the City Creek Project was amended during 2017 to run coterminously with the term of the ground lease covering the land under the hotel. As such, the term now runs through 2056 , inclusive of renewal options. • The Westin Boston Waterfront Hotel is subject to a ground lease that runs until 2099 . There are no renewal options. • The Shorebreak Hotel is subject to a ground lease that runs until 2100 , inclusive of two renewal options of 25 years each and one 24 -year renewal option. We own a 95.5% undivided interest in the land underlying the hotel and lease the remaining 4.5% under the ground lease. • The Hotel Palomar Phoenix is subject to a ground lease that runs until 2085 , inclusive of three renewal options of five years each. • Cavallo Point is subject to a ground lease with the United States National Park Service that runs until 2066 . There are no renewal options. A portion of the parking garage relating to the Renaissance Worthington is subject to three ground leases that cover, contiguously with each other, approximately one-fourth of the land on which the parking garage is constructed. Each of the ground leases has a term that runs through July 2067 , inclusive of three 15 -year renewal options. The remainder of the land on which the parking garage is constructed is owned by us in fee simple. A portion of the JW Marriott Denver at Cherry Creek is subject to a ground lease that covers approximately 5,500 square feet. The term of the ground lease runs through December 2030 , inclusive of two 5 -year renewal options. The lease may be indefinitely extended thereafter in one -year increments. The remainder of the land on which the hotel is constructed is owned by us in fee simple. We lease the buildings and sublease the underlying land containing 28 of the 70 rooms at the Orchards Inn Sedona, which expires in 2070 , including all extension options. The remainder of the land underlying the hotel is owned by us in fee simple. These ground leases generally require us to make rental payments (including a percentage of gross receipts as percentage rent with respect to the Courtyard Manhattan/Fifth Avenue, Westin Boston Waterfront Hotel, Salt Lake City Marriott Downtown, and Cavallo Point ground leases). Most of our ground leases require us to make payments for all charges, costs, expenses, assessments and liabilities, including real property taxes and utilities. Furthermore, these ground leases generally require us to obtain and maintain insurance covering the subject property. The following table reflects the current and future annual rents under our ground leases: Property Term (1) Annual Rent Bethesda Marriott Suites Through 4/2087 $824,341 (2) Courtyard Manhattan/Fifth Avenue (3) 10/2007 - 9/2017 $906,000 10/2017 - 9/2027 $1,132,812 10/2027 - 9/2037 $1,416,015 10/2037 - 9/2047 $1,770,019 10/2047 - 9/2057 $2,212,524 10/2057 - 9/2067 $2,765,655 10/2067 - 9/2077 $3,457,069 10/2077 - 9/2085 $4,321,336 Salt Lake City Marriott Downtown (Ground lease for hotel) (4) Through 12/2056 Greater of $132,000 or 2.6% of annual gross room sales Salt Lake City Marriott Downtown (Ground lease for extension) 1/2013 - 12/2016 $11,305 1/2017 - 12/2017 $13,000 1/2018 - 12/2056 (5) $13,500 Westin Boston Waterfront Hotel (6) (Base rent) 1/2016 - 12/2020 $750,000 1/2021 - 12/2025 $1,000,000 1/2026 - 12/2030 $1,500,000 1/2031 - 12/2035 $1,750,000 1/2036 - 5/2099 No base rent Westin Boston Waterfront Hotel (Percentage rent) Through 5/2015 0% of annual gross revenue 6/2016 - 5/2026 1.0% of annual gross revenue 6/2026 - 5/2036 1.5% of annual gross revenue 6/2036 - 5/2046 2.75% of annual gross revenue 6/2046 - 5/2056 3.0% of annual gross revenue 6/2056 - 5/2066 3.25% of annual gross revenue 6/2066 - 5/2099 3.5% of annual gross revenue JW Marriott Denver at Cherry Creek 1/2016 - 12/2020 $50,000 1/2021 - 12/2025 $55,000 1/2026 - 12/2030 (7) $60,000 Shorebreak Hotel Through 4/2016 $115,542 5/2016 - 4/2021 (8) $126,649 Orchards Inn Sedona Through 6/2018 $117,780 7/2018 - 12/2070 $123,499 (9) Hotel Palomar Phoenix (Base Rent) Through 3/2020 $16,875 4/2020 - 3/2021 $33,750 4/2021 - 3/2085 $34,594 (10) Hotel Palomar Phoenix (Government Property Lease Excise Tax) (11) 1/2022 - 12/2023 $390,000 1/2024 - 12/2033 $312,000 1/2034 - 12/2043 $234,000 1/2044 - 12/2053 $156,000 1/2054 - 12/2063 $78,000 1/2064 - 3/2085 $— Cavallo Point (Base Rent) Through 12/2018 $1 1/2019 - 12/2066 $67,034 (12) Cavallo Point (13) (Percentage Rent) Through 12/2018 1.0% of adjusted gross revenue over threshold 1/2019 - 12/2023 2.0% of adjusted gross revenue over threshold 1/2024 - 12/2028 3.0% of adjusted gross revenue over threshold 1/2029 - 12/2033 4.0% of adjusted gross revenue over threshold 1/2034 - 12/2066 5.0% of adjusted gross revenue over threshold Cavallo Point (14) (Participation Rent) Through 12/2066 10.0% of adjusted gross revenue over threshold Property Term (1) Annual Rent Renaissance Worthington garage ground lease 8/2013 - 7/2022 $40,400 8/2022 - 7/2037 $46,081 8/2037 - 7/2052 $51,763 8/2052 - 7/2067 $57,444 __________ (1) These terms assume our exercise of all renewal options. (2) Represents rent for the year ended December 31, 2019. Rent increases annually by 5.5%. (3) The total annual rent includes the fixed rent noted in the table plus a percentage rent equal to 5% of gross receipts for each lease year, but only to the extent that 5% of gross receipts exceeds the minimum fixed rent in such lease year. There was no such percentage rent earned during the year ended December 31, 2019. (4) We own a 21% interest in the land underlying the hotel and, as a result, 21% of the annual rent under the ground lease is paid to us by the hotel. (5) Rent will increase from the prior year's rent based on a Consumer Price Index calculation on each January 1, beginning January 1, 2019 and through the end of the lease. (6) Total annual rent under the ground lease is capped at 2.5% of hotel gross revenues during the initial 30 years of the ground lease. (7) Beginning January 2031, we have the right to renew the ground lease in one-year increments at the prior year's annual rent plus 3%. (8) Rent will increase on May 1, 2021 and every five years thereafter based on a Consumer Price Index calculation. (9) Represents rent from July 2019 through June 2020. On July 1, 2018, rent increased based on a Consumer Price Index calculation, and will continue to do so annually through the end of the lease. (10) Represents rent from April 2021 through March 2022. Rent increases annually each April by 2.5%. (11) As lessee of government property, the hotel is subject to a Government Property Lease Excise Tax ("GPLET") under Arizona state statute with payments beginning in 2022. (12) Base rent increases in January 2019 and resets every five years based on the average of the previous three years of adjusted gross revenues, as defined in the ground lease, multiplied by 75%. (13) Percentage rent is applied to annual adjusted gross revenues, as defined in the ground lease, between $30 million and the participation rent threshold. Base rent is deducted from the percentage rent. (14) Participation rent is applied to annual adjusted gross revenues, as defined in the ground lease, over $40 million in 2018, $42 million in 2019, and $42 million plus an annual increase based on a Consumer Price Index calculation for 2020 and every year thereafter through the end of the lease term. |
Fair Value Measurements and Int
Fair Value Measurements and Interest Rate Swaps | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Interest Rate Swaps | Fair Value Measurements and Interest Rate Swaps The fair value of certain financial assets and liabilities and other financial instruments as of December 31, 2019 and 2018 , in thousands, are as follows: December 31, 2019 December 31, 2018 Carrying Amount (1) Fair Value Carrying Amount (1) Fair Value Debt $ 1,090,099 $ 1,110,353 $ 977,966 $ 960,447 Interest rate swap liabilities $ 2,545 $ 2,545 $ — $ — _______________ (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 fair value of our interest rate swaps is a Level 2 measurement under the fair value hierarchy. We estimate the fair value of the interest rate swap based on the interest rate yield curve and implied market volatility as inputs and adjusted for the counterparty's credit risk. We concluded the inputs for the credit risk valuation adjustment are Level 3 inputs, however these inputs are not significant to the fair value measurement in its entirety. The carrying value of our other financial instruments approximate fair value due to the short-term nature of these financial instruments. Interest Rate Swaps The Company's interest rate derivatives, which are not designated or accounted for as cash flow hedges, consisted of the following as of December 31, 2019 and 2018 , in thousands: Fair Value of Assets (Liabilities) Hedged Debt Type Rate Fixed Index Effective Date Maturity Date Notional Amount December 31, 2019 December 31, 2018 $50 million term loan Swap 2.41 % 1-Month LIBOR January 7, 2019 October 18, 2023 $ 50,000 $ (1,597 ) $ — $350 million term loan Swap 1.70 % 1-Month LIBOR July 25, 2019 July 25, 2024 $ 175,000 (948 ) — $ (2,545 ) $ — The fair values of the interest rate swap agreements are included in accounts payable and accrued expenses on the accompanying consolidated balance sheet as of December 31, 2019 . |
Quarterly Operating Results (Un
Quarterly Operating Results (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Quarterly Operating Results (Unaudited) | Quarterly Operating Results (Unaudited) 2019 Quarter Ended March 31 June 30 September 30 December 31 (In thousands, except per share data) Total revenue $ 202,375 $ 257,918 $ 240,279 $ 237,519 Total operating expenses 185,885 211,960 211,033 75,214 Operating income $ 16,490 $ 45,958 $ 29,246 $ 162,305 Net income $ 8,980 $ 29,074 $ 11,574 $ 134,583 Net income attributable to common stockholders $ 8,945 $ 28,960 $ 11,529 $ 134,053 Net income per share available to common stockholders—basic $ 0.04 $ 0.14 $ 0.06 $ 0.67 Net income per share available to common stockholders—diluted $ 0.04 $ 0.14 $ 0.06 $ 0.66 2018 Quarter Ended March 31 June 30 September 30 December 31 (In thousands, except per share data) Total revenue $ 181,530 $ 237,949 $ 220,818 $ 223,407 Total operating expenses 168,011 200,012 176,589 189,031 Operating income $ 13,519 $ 37,937 $ 44,229 $ 34,376 Net income $ 4,338 $ 28,009 $ 31,443 $ 24,006 Net income attributable to common stockholders $ 4,338 $ 28,009 $ 31,443 $ 23,994 Net income per share available to common stockholders—basic $ 0.02 $ 0.14 $ 0.15 $ 0.12 Net income per share available to common stockholders—diluted $ 0.02 $ 0.14 $ 0.15 $ 0.12 |
Schedule III - Real Estate and
Schedule III - Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
Schedule III - Real Estate and Accumulated Depreciation | DiamondRock Hospitality Company Schedule III - Real Estate and Accumulated Depreciation As of December 31, 2019 (in thousands) Costs Initial Cost Capitalized Gross Amount at End of Year Building and Subsequent to Building and Accumulated Net Book Year of Depreciation Description Encumbrances Land Improvements Acquisition Land Improvements Total Depreciation Value Acquisition Life Atlanta Alpharetta Marriott $ — $ 3,623 $ 33,503 $ 2,959 $ 3,623 $ 36,463 $ 40,086 $ (12,626 ) $ 27,460 2005 40 Years Bethesda Marriott Suites — — 45,656 5,362 — 51,018 51,018 (18,026 ) 32,992 2004 40 Years Westin Boston Waterfront Hotel (190,725 ) — 273,696 34,228 — 307,924 307,924 (95,988 ) 211,936 2007 40 Years Cavallo Point — — 123,100 2,613 — 125,713 125,713 (3,084 ) 122,629 2018 40 Years Chicago Marriott Downtown — 36,900 347,921 97,018 36,900 444,939 481,839 (132,454 ) 349,385 2006 40 Years The Gwen Chicago — 31,650 76,961 22,774 31,650 99,735 131,385 (27,568 ) 103,817 2006 40 Years Courtyard Denver — 9,400 36,180 4,284 9,400 40,464 49,864 (8,009 ) 41,855 2011 40 Years Courtyard Manhattan/Fifth Avenue — — 34,685 4,925 — 39,610 39,610 (14,435 ) 25,175 2004 40 Years Courtyard Manhattan/Midtown East (81,107 ) 16,500 54,812 5,905 16,500 60,717 77,217 (21,832 ) 55,385 2004 40 Years Frenchman's Reef & Morning Star Beach Resort — 17,713 50,697 17,949 17,713 68,646 86,359 (15,230 ) 71,129 2005 40 Years Havana Cabana Key West — 32,888 13,371 5,336 32,888 18,707 51,595 (2,041 ) 49,554 2014 40 Years Hilton Boston Downtown — 23,262 128,628 13,348 23,262 141,976 165,238 (25,725 ) 139,513 2012 40 Years Hilton Burlington — 9,197 40,644 2,303 9,197 42,947 52,144 (8,061 ) 44,083 2012 40 Years Hilton Garden Inn/New York Times Square Central — 60,300 88,896 636 60,300 89,533 149,833 (11,969 ) 137,864 2014 40 Years Hotel Emblem — 7,856 21,085 7,821 7,856 28,906 36,762 (3,946 ) 32,816 2012 40 Years Hotel Palomar Phoenix (2,943 ) — 59,703 (87 ) — 59,616 59,616 (2,781 ) 56,835 2018 40 Years JW Marriott Denver (61,253 ) 9,200 63,183 8,585 9,200 71,768 80,968 (13,996 ) 66,972 2011 40 Years The Landing at Lake Tahoe — 14,816 24,351 810 14,816 25,161 39,977 (1,164 ) 38,813 2018 40 Years L'Auberge de Sedona — 39,384 22,204 1,042 39,384 23,246 62,630 (2,468 ) 60,162 2017 40 Years Lexington Hotel New York — 92,000 229,368 26,573 92,000 255,941 347,941 (52,236 ) 295,705 2011 40 Years Orchards Inn Sedona — 9,726 10,180 115 9,726 10,295 20,021 (792 ) 19,229 2017 40 Years Renaissance Charleston Historic District — 5,900 32,511 6,706 5,900 39,218 45,118 (8,139 ) 36,979 2010 40 Years Renaissance Worthington (80,904 ) 15,500 63,428 21,620 15,500 85,048 100,548 (25,203 ) 75,345 2005 40 Years Salt Lake City Marriott Downtown (53,273 ) — 45,815 9,481 855 54,441 55,296 (18,310 ) 36,986 2004 40 Years Sheraton Suites Key West — 49,592 42,958 9,646 49,592 52,604 102,196 (5,242 ) 96,954 2015 40 Years Shorebreak Hotel — 19,908 37,525 3,599 19,908 41,124 61,032 (4,891 ) 56,141 2015 40 Years The Lodge at Sonoma, a Renaissance Resort and Spa (26,963 ) 3,951 22,720 8,816 3,951 31,536 35,487 (13,412 ) 22,075 2004 40 Years Vail Marriott Mountain Resort & Spa — 5,800 52,463 25,767 5,800 78,230 84,030 (20,612 ) 63,418 2005 40 Years Westin Fort Lauderdale Beach Resort — 54,293 83,227 10,662 54,293 93,889 148,182 (11,352 ) 136,830 2014 40 Years Westin San Diego (61,851 ) 22,902 95,617 9,279 22,902 104,896 127,798 (19,164 ) 108,634 2012 40 Years Westin Washington, D.C City Center (60,550 ) 24,579 122,229 13,044 24,579 135,273 159,852 (24,655 ) 135,197 2012 40 Years Total $ (619,569 ) $ 616,840 $ 2,377,317 $ 383,119 $ 617,695 $ 2,759,584 $ 3,377,279 $ (625,411 ) $ 2,751,868 Notes: A) The change in total cost of properties for the fiscal years ended December 31, 2019 , 2018 and 2017 is as follows (in thousands): Balance at December 31, 2016 $ 2,917,634 Additions: Acquisitions 81,494 Capital expenditures 68,573 Deductions: Dispositions and other (42,612 ) Balance at December 31, 2017 3,025,089 Additions: Acquisitions 221,970 Capital expenditures 60,950 Deductions: Dispositions and other — Balance at December 31, 2018 3,308,009 Additions: Acquisitions — Capital expenditures 69,270 Deductions: Dispositions and other — Balance at December 31, 2019 $ 3,377,279 B) The change in accumulated depreciation of real estate assets for the fiscal years ended December 31, 2019 , 2018 and 2017 is as follows (in thousands): Balance at December 31, 2016 $ 441,952 Depreciation and amortization 60,023 Dispositions and other (9,104 ) Balance at December 31, 2017 492,871 Depreciation and amortization 63,997 Dispositions and other — Balance at December 31, 2018 556,868 Depreciation and amortization 68,543 Dispositions and other — Balance at December 31, 2019 $ 625,411 C) The aggregate cost of properties for Federal income tax purposes (in thousands) is approximately $3,278,942 as of December 31, 2019 . |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation 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. Our operating partnership meets the criteria of a variable interest entity. The Company is the primary beneficiary and, accordingly, we consolidate our operating partnership. The Company’s sole significant asset is its investment in its operating partnership, and consequently, substantially all of the Company’s assets and liabilities represent those assets and liabilities of its operating partnership. In addition, all of the Company's debt is an obligation of its 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. |
Risks and Uncertainties; Accounting for Impacts of Natural Disasters | Accounting for Impacts 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. Risks and Uncertainties The state of the overall economy can significantly impact hotel operational performance and thus, impact our financial position. Should any of our hotels experience a significant decline in operational performance, it may affect our ability to make distributions to our stockholders and service debt or meet other financial obligations. |
Fair Value Measurements | Fair Value Measurements In evaluating fair value, U.S. GAAP outlines a valuation framework and creates a fair value hierarchy that distinguishes between market assumptions based on market data (observable inputs) and a reporting entity’s own assumptions about market data (unobservable inputs). The hierarchy ranks the quality and reliability of inputs used to determine fair value, which are then classified and disclosed in one of the three categories. The three levels are as follows: • Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities • Level 2 - Inputs include quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets in markets that are not active and model-derived valuations whose inputs are observable • Level 3 - Model-derived valuations with unobservable inputs |
Property and Equipment | Property and Equipment Following the adoption of FASB Accounting Standards Update (“ASU”) No. 2017-01, investments in hotel properties, including related land, land improvements, building and furniture, fixtures and equipment and identifiable intangible assets are generally accounted for as asset acquisitions, which are recorded at total cost and allocated based on relative fair value. 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, current or projected losses from operations, and an expectation that the property is more likely than not to be sold significantly before the end of its useful life. 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 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 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 cease recording depreciation expense, and classify the assets and related liabilities as held for sale on the balance sheet. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. |
Revenue Recognition | Revenue Recognition Revenues from hotel operations are recognized when the goods or services are provided. Revenues consist of room sales, food and beverage sales, and other hotel department revenues, such as telephone, parking, gift shop sales and resort fees. Rooms revenue is recognized over the length of stay that the hotel room is occupied by the customer. Food and beverage revenue is recognized at the point in time in which the goods and/or services are rendered to the customer, such as for restaurant dining services or banquet services. 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. |
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 REIT under the provisions of the Internal Revenue 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 existing taxable REIT subsidiary, or TRS, except for Frenchman’s Reef, which is owned by a Virgin Islands corporation, which we have elected to be treated as a TRS, and Cavallo Point, The Lodge at the Golden Gate (“Cavallo Point”), which is leased to a wholly owned subsidiary of the Company, which we have elected to be treated as a TRS. |
Intangible Assets and Liabilities | Intangible Assets and Liabilities |
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 stock grants 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. |
Share-based Compensation | Share-Based Compensation We account for share-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. |
Comprehensive Income | Comprehensive Income We do not have any comprehensive income other than net income. If we have any comprehensive income in future periods, such that a statement of comprehensive income would be necessary, such statement will be reported as one statement with the consolidated statement of operations. |
Derivative Instruments | Derivative Instruments In the normal course of business, we are exposed to the effects of interest rate changes. We may enter into derivative instruments, including interest rate swaps and caps, to manage or hedge interest rate risk. Derivative instruments are recorded at fair value on the balance sheet date. Changes in the fair value of derivatives are recorded each period and are included in interest expense in the accompanying consolidated statements of operations. |
Noncontrolling Interests | Noncontrolling Interests The noncontrolling interest is the portion of equity in our consolidated operating partnership not attributable, directly or indirectly, to the Company. Such noncontrolling interests are reported on the consolidated balance sheets within equity, separately from the Company’s equity. On the consolidated statements of operations, revenues, expenses and net income or loss from our less-than-wholly-owned operating partnership are reported within the consolidated amounts, including both the amounts attributable to the Company and noncontrolling interests. Income or loss is allocated to noncontrolling interests based on their weighted average ownership percentage for the applicable period. Consolidated statements of equity include beginning balances, activity for the period and ending balances for stockholders’ equity, noncontrolling interests and total equity. |
Restricted Cash | Restricted Cash Restricted cash primarily consists of cash held in reserve for replacement of furniture and fixtures generally held by our hotel managers and cash held in escrow pursuant to lender requirements. |
Debt Issuance Costs | Debt Issuance Costs Financing costs are recorded at cost as a component of the debt carrying amount and consist of loan fees and other costs incurred in connection with the issuance of debt. Amortization of deferred financing costs is computed using a method that approximates the effective interest method over the remaining life of the debt and is included in interest expense in the accompanying consolidated statements of operations. |
Due to/from Hotel Managers | Due to/from Hotel Managers The due from hotel managers consists of hotel level accounts receivable, periodic hotel operating distributions receivable from managers and prepaid and other assets held by the hotel managers on our behalf. The due to hotel managers represents liabilities incurred by the hotel on behalf of us in conjunction with the operation of our hotels which are legal obligations of the Company. |
Key Money | Key Money Key money received in conjunction with entering into hotel management or franchise agreements or completing specific capital projects is deferred and amortized over the term of the hotel management agreement, the term of the franchise agreement, or other systematic and rational period, if appropriate. Deferred key money is classified as deferred income in the accompanying consolidated balance sheets and amortized as an offset to management fees or franchise fees. |
Leases | Leases We determine if an arrangement is a lease or contains an embedded lease at inception. For agreements with both lease and nonlease components (e.g., common-area maintenance costs), we do not separate the nonlease components from the lease components, but account for these components as one. We determine the lease classification (operating or finance) at lease inception. Right-of-use assets and lease liabilities are recognized based on the present value of the future lease payments over the lease term at the commencement date. The discount rate used to determine the present value of the lease payments is our incremental borrowing rate as of the lease commencement date, as the implicit rate is not readily determinable. The right-of-use assets also include any initial direct costs and any lease payments made at or before the commencement date, and is reduced for any unrestricted incentives received at or before the commencement date. Options to extend or terminate the lease are included in the recognition of our right-of-use assets and lease liabilities when it is reasonably certain that we will exercise the option. Variable payments that are based on an index or a rate are included in the recognition of our right-of-use assets and lease liabilities using the index or rate at lease commencement; however, changes to these lease payments due to rate or index updates are recorded as rent expense in the period incurred. Contingent rentals based on a percentage of sales in excess of stipulated amounts are not included in the measurement of the lease liability and right-of-use asset but will be recognized as variable lease expense when they are incurred. Leases that contain provisions that increase the fixed minimum lease payments based on previously incurred variable lease payments related to performance will be remeasured, as these payments now represent an increase in the fixed minimum payments for the remainder of the lease term. However, leases with provisions that increase minimum lease payments based on changes in a reference index or rate (e.g. Consumer Price Index) will not be remeasured as such changes do not constitute a resolution of a contingency. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of our cash and cash equivalents. We maintain cash and cash equivalents with various financial institutions. We perform periodic evaluations of the relative credit standing of these financial institutions and limit the amount of credit exposure with any one institution. |
Segment Reporting | Segment Reporting Each one of our hotels is an operating segment. We evaluate each of our properties on an individual basis to assess performance, the level of capital expenditures, and acquisition or disposition transactions. Our evaluation of individual properties is not focused on property type (e.g. urban, suburban, or resort), brand, geographic location, or industry classification. We aggregate our operating segments using the criteria established by U.S. GAAP, including the similarities of our product offering, types of customers and method of providing service. All of our properties react similarly to economic stimulus, such as business investment, changes in Gross Domestic Product, and changes in travel patterns. As such, all our operating segments meet the aggregation criteria, resulting in a single reportable segment represented by our consolidated financial results. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements 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 right-of-use assets and lease liabilities. This standard is effective for annual reporting periods beginning after December 15, 2018. We adopted ASU No. 2016-02, along with its related clarifications and amendments (collectively, “ASC 842”), on January 1, 2019. Our consolidated financial statements as of December 31, 2019 are presented in accordance with ASC 842. The primary impact of the new standard is to the treatment of our ground leases, which represent the majority of all of our operating lease payments. Upon adoption, our right-of-use assets were adjusted for deferred rent and favorable and unfavorable lease intangible amounts included on our balance sheet as of December 31, 2018 . On January 1, 2019, we recognized lease liabilities totaling $101.2 million and right-of-use assets totaling $99.6 million . We adopted ASC 842 using the modified retrospective approach whereby the cumulative effect of adoption was recognized in accumulated deficit on the adoption date and prior periods were not restated. The adoption of the standard did not have a material impact to our results of operations, cash flows, or liquidity. On adoption of the standard, we elected all available practical expedients provided for in ASC 842, including: (i) no reassessment of whether any expired or existing contracts were or contained leases; (ii) no reassessment of the lease classification for any expired or existing leases; (iii) no reassessment of initial direct costs for any existing leases; and (iv) use of hindsight in determining the lease term and in assessing the likelihood that a purchase option will be exercised. The practical expedients were consistently applied to all existing leases as of January 1, 2019. We also elected an accounting policy to account for leases with an initial term of 12 months or less using existing guidance for operating leases. For lease agreements in which we are the lessor, we have analyzed the standard and determined that there was no material impact to the recognition, measurement, or presentation of these revenues. Room revenues, which constitute the majority of our revenues, are considered short-term leases. We also earn revenues from certain retail leases at our hotel properties, which are included in other revenue. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of gain on business interruption | The following table summarizes the business interruption insurance income by impacted hotel property (in thousands): Year Ended December 31, 2019 2018 2017 Frenchman's Reef $ 8,822 $ 16,090 $ 3,128 Havana Cabana Key West — 2,137 923 The Lodge at Sonoma — 1,152 — Total $ 8,822 $ 19,379 $ 4,051 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment as of December 31, 2019 and 2018 consists of the following (in thousands): 2019 2018 Land $ 617,695 $ 617,695 Land improvements 7,994 7,994 Buildings 2,751,590 2,682,320 Furniture, fixtures and equipment 534,802 491,421 Construction in progress 126,464 38,623 4,038,545 3,838,053 Less: accumulated depreciation (1,011,776 ) (893,436 ) $ 3,026,769 $ 2,944,617 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Components of ease expense and other information | The components of operating lease expense, which is included in other hotel expenses in our consolidated statements of operations, and cash paid for amounts included in the measurement of lease liabilities, are as follows (in thousands): Year Ended December 31, 2019 Operating lease cost $ 11,248 Variable lease payments $ 1,466 Cash paid for amounts included in the measurement of operating lease liabilities $ 3,239 |
Summary of operating lease maturities | Maturities of lease liabilities are as follows (in thousands): Year Ending December 31, As of December 31, 2019 2020 $ 3,315 2021 4,805 2022 3,940 2023 3,997 2024 3,976 Thereafter 759,124 Total lease payments 779,157 Less imputed interest (675,532 ) Total lease liabilities $ 103,625 The future minimum annual rental commitments under all non-cancelable operating leases in effect as of December 31, 2018 as determined prior to the adoption of ASC 842 and its related practical expedients, are as follows (in thousands): Year Ending December 31, As of December 31, 2018 2019 $ 5,232 2020 4,866 2021 6,132 2022 5,122 2023 5,096 Thereafter 636,770 $ 663,218 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Dividends Payable | We have paid the following dividends to holders of our common stock and distributions to holders of OP units and LTIP units for the years ended December 31, 2019 and 2018 , and through the date of this report: Payment Date Record Date Distributions per Common Share/Unit April 12, 2018 March 29, 2018 $0.125 July 12, 2018 June 29, 2018 $0.125 October 12, 2018 September 28, 2018 $0.125 January 14, 2019 January 4, 2019 $0.125 April 12, 2019 March 29, 2019 $0.125 July 12, 2019 June 28, 2019 $0.125 October 11, 2019 September 30, 2019 $0.125 January 13, 2020 January 2, 2020 $0.125 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share Based Compensation Restricted Stock Activity | A summary of our restricted stock awards from January 1, 2017 to December 31, 2019 is as follows: Number of Shares Weighted- Average Grant Date Fair Value Unvested balance at January 1, 2017 567,540 $ 10.62 Granted 324,502 11.19 Forfeited (16,669 ) 10.80 Vested (244,411 ) 11.29 Unvested balance at December 31, 2017 630,962 10.66 Granted 349,091 10.19 Forfeited (51,061 ) 10.44 Vested (287,148 ) 11.02 Unvested balance at December 31, 2018 641,844 10.25 Granted 162,806 10.38 Forfeited (21,534 ) 10.37 Vested (310,117 ) 10.08 Unvested balance at December 31, 2019 472,999 $ 10.40 |
Schedule of Performance Shares Issued | The ratio of total PSUs issued to executive officers is divided between the two metrics as follows: Grant Year Vesting Year Total Shareholder Return Hotel Market Share 2014 2017 100 % — % 2015 2018 100 % — % 2016 2019 75 % 25 % 2017 2020 50 % 50 % 2018 2021 50 % (1) 50 % 2019 2022 50 % (1) 50 % ______________________ (1) The number of PSUs to be earned is limited to target if the Company's total stockholder return is negative for the performance period. |
Summary of LTIP units | A summary of our LTIP units from January 1, 2019 to December 31, 2019 is as follows: Number of Weighted- Unvested balance at January 1, 2019 — $ — Granted 281,925 10.65 Forfeited (37,559 ) 10.65 Unvested balance at December 31, 2019 244,366 $ 10.65 |
Performance Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair Value Valuation Assumptions | The determination of the grant-date fair values of outstanding awards based on our relative total stockholder return included the following assumptions: Award Grant Date Volatility Risk-Free Rate Fair Value at Grant Date February 26, 2017 26.7 % 1.46 % $ 10.89 March 2, 2018 26.9 % 2.40 % $ 9.52 April 2, 2018 26.9 % 2.37 % $ 9.00 March 1, 2019 24.3 % 2.54 % $ 9.68 |
Schedule of Nonvested Performance-based Units Activity | A summary of our PSUs from January 1, 2017 to December 31, 2019 is as follows: Number of Weighted- Unvested balance at January 1, 2017 686,684 $ 10.65 Granted 266,009 11.04 Additional units from dividends 33,478 11.17 Vested (1) (200,374 ) 12.15 Unvested balance at December 31, 2017 785,797 10.42 Granted 293,111 9.82 Additional units from dividends 35,197 11.24 Vested (2) (218,514 ) 11.98 Forfeited (113,668 ) 9.86 Unvested balance at December 31, 2018 781,923 11.19 Granted 296,050 10.14 Additional units from dividends 40,662 10.00 Vested (3) (251,375 ) 8.80 Forfeited (70,728 ) 9.93 Unvested balance at December 31, 2019 796,532 $ 11.16 ______________________ (1) There was no payout of shares of our common stock for PSUs that vested on February 27, 2017, as our total stockholder return fell below the 30th percentile of the total stockholder returns of the peer group over the three-year performance period. (2) The number of shares of common stock earned for the PSUs vested in 2018 was equal to 51.75% of the PSU Target Award (3) The number of shares of common stock earned for the PSUs vested in 2019 was equal to 74.33% of the PSU Target Award. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings 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): Years Ended December 31, 2019 2018 2017 Numerator: Net income attributable to common stockholders $ 183,487 $ 87,784 $ 91,877 Distributions declared on unvested share-based compensation (132 ) — — Net income available to common stockholders $ 183,355 $ 87,784 $ 91,877 Denominator: Weighted-average number of common shares outstanding—basic 202,009,750 205,462,911 200,784,450 Effect of dilutive securities: Unvested restricted common stock 156,146 215,655 188,759 Shares related to unvested PSUs 575,734 452,584 548,259 Weighted-average number of common shares outstanding—diluted 202,741,630 206,131,150 201,521,468 Earnings per share: Net income per share available to common stockholders—basic $ 0.91 $ 0.43 $ 0.46 Net income per share available to common stockholders—diluted $ 0.90 $ 0.43 $ 0.46 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Long Term Debt | The following table sets forth information regarding the Company’s debt as of December 31, 2019 and 2018 (dollars in thousands): Principal Balance as of December 31, Loan Interest Rate Maturity Date 2019 2018 Salt Lake City Marriott Downtown mortgage loan 4.25 % November 2020 $ 53,273 $ 55,032 Westin Washington D.C. City Center mortgage loan 3.99 % January 2023 60,550 62,734 The Lodge at Sonoma, a Renaissance Resort & Spa mortgage loan 3.96 % April 2023 26,963 27,633 Westin San Diego mortgage loan 3.94 % April 2023 61,851 63,385 Courtyard Manhattan / Midtown East mortgage loan 4.40 % August 2024 81,107 82,620 Renaissance Worthington mortgage loan 3.66 % May 2025 80,904 82,540 JW Marriott Denver at Cherry Creek mortgage loan 4.33 % July 2025 61,253 62,411 Boston Westin mortgage loan 4.36 % November 2025 190,725 194,466 New Market Tax Credit loan (1) 5.17 % December 2020 2,943 2,943 Unamortized debt issuance costs (3,240 ) (4,017 ) Total mortgage and other debt, net of unamortized debt issuance costs 616,329 629,747 Unsecured term loan LIBOR + 1.45% (2) May 2021 — 100,000 Unsecured term loan LIBOR + 1.45% (2) April 2022 — 200,000 Unsecured term loan LIBOR + 1.40% (3) October 2023 50,000 50,000 Unsecured term loan LIBOR + 1.40% (4) July 2024 350,000 — Unamortized debt issuance costs (1,230 ) (1,781 ) Unsecured term loans, net of unamortized debt issuance costs 398,770 348,219 Senior unsecured credit facility LIBOR + 1.45% July 2023 (5) 75,000 — Total debt, net of unamortized debt issuance costs $ 1,090,099 $ 977,966 Weighted-Average Interest Rate 3.81% _____________ (1) Assumed in connection with the acquisition of the Hotel Palomar Phoenix on March 1, 2018 . (2) The loan was prepaid on July 25, 2019 in connection with the refinancing described below under the heading "Unsecured Term Loans." (3) We entered into an interest rate swap agreement on January 7, 2019 to fix LIBOR at 2.41% through October 2023 . (4) We entered into an interest rate swap agreement on July 25, 2019 to fix LIBOR at 1.70% through July 2024 for $175 million of the loan. (5) The credit facility may be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions. On July 25, 2019 , the credit facility was amended to increase capacity to $400 million and extend maturity to July 2023 . |
Schedule of Maturities of Long-Term Debt | The aggregate debt maturities as of December 31, 2019 are as follows (in thousands): 2020 $ 69,116 2021 13,518 2022 14,096 2023 194,650 2024 432,381 Thereafter 295,808 $ 1,019,569 |
Summary of Leverage and Applicable Margin | The interest rate on each of the term loans is based on LIBOR, plus an applicable margin based on the Company’s leverage ratio, as follows: Leverage Ratio Applicable Margin Less than or equal to 30% 1.35% Greater than 30% but less than or equal to 35% 1.40% Greater than 35% but less than or equal to 40% 1.45% Greater than 40% but less than or equal to 45% 1.50% Greater than 45% but less than or equal to 50% 1.65% Greater than 50% but less than or equal to 55% 1.85% Greater than 55% 2.00% Leverage Ratio Applicable Margin Less than or equal to 30% 1.40% Greater than 30% but less than or equal to 35% 1.45% Greater than 35% but less than or equal to 40% 1.50% Greater than 40% but less than or equal to 45% 1.55% Greater than 45% but less than or equal to 50% 1.70% Greater than 50% but less than or equal to 55% 1.90% Greater than 55% 2.05% |
Summary of the Most Restrictive Covenants for Senior Unsecured Credit Facility | The Revolving Credit Facility also contains various corporate financial covenants. A summary of the most restrictive covenants is as follows: Actual at Covenant December 31, 2019 Maximum leverage ratio (1) 60% 28.5% Minimum fixed charge coverage ratio (2) 1.50x 3.49x Secured recourse indebtedness Less than 45% of Total Asset Value 18.6% Unencumbered leverage ratio 60.0% 26.0% Unencumbered implied debt service coverage ratio 1.20x 2.84x _____________________________ (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. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Acquired Assets and Liabilities | The following table summarizes the assets acquired and liabilities assumed in our 2018 acquisitions (in thousands): Cavallo Point Landing Resort & Spa Hotel Palomar Phoenix Land $ — $ 14,816 $ — Building and improvements 123,100 24,351 59,703 Furniture, fixtures and equipment 10,470 3,346 5,207 Construction in progress 1,734 — — Total fixed assets 135,304 42,513 64,910 Favorable lease asset 17,907 — 20,012 Unfavorable lease liability — — (4,644 ) New Market Tax Credit loan assumption — — (2,943 ) Other assets and liabilities, net (5,083 ) (658 ) 497 Total $ 148,128 $ 41,855 $ 77,832 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Our provision for income taxes consists of the following (in thousands): Year Ended December 31, 2019 2018 2017 Current - Federal $ 420 $ 66 $ 622 State 541 984 1,221 Foreign 49 460 662 1,010 1,510 2,505 Deferred - Federal 80 1,857 6,432 State 132 178 425 Foreign 20,806 (444 ) 845 21,018 1,591 7,702 Income tax provision $ 22,028 $ 3,101 $ 10,207 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the statutory federal tax provision to our income tax provision is as follows (in thousands): Year Ended December 31, 2019 2018 2017 Statutory federal tax provision (1) $ 43,313 $ 19,089 $ 35,729 Tax impact of REIT election (14,125 ) (14,439 ) (22,277 ) State income tax provision, net of federal tax benefit 532 705 1,652 Foreign income tax benefit (6,998 ) (2,927 ) (430 ) Tax reform impact on U.S. taxes — — (2,143 ) Tax reform impact on foreign taxes — — (2,076 ) Other (694 ) 673 (248 ) Income tax provision $ 22,028 $ 3,101 $ 10,207 _____________________________ (1) Beginning January 1, 2018, the U.S. federal income tax rate decreased from 35% to 21% . |
Schedule of Deferred Tax Assets and Liabilities | The total deferred tax assets and liabilities are as follows (in thousands): 2019 2018 Federal Net operating loss carryforwards $ — $ 1,983 Deferred income related to key money 2,382 2,465 Alternative minimum tax credit carryforwards — 103 Other 529 326 Depreciation and amortization (7,928 ) (9,188 ) Federal - Deferred tax (liabilities) assets, net $ (5,017 ) $ (4,311 ) State Net operating loss carryforwards $ 2,572 $ 2,975 Deferred income related to key money 735 780 Alternative minimum tax credit carryforwards 80 80 Other 167 103 Depreciation and amortization (2,446 ) (2,906 ) Less: Valuation allowance (700 ) (700 ) State - Deferred tax assets, net $ 408 $ 332 Foreign (USVI) Deferred income related to key money $ — $ — Depreciation and amortization (21,060 ) (255 ) Other — — Land basis recorded in purchase accounting (2,617 ) (2,617 ) Foreign - Deferred tax liabilities, net $ (23,677 ) $ (2,872 ) |
Relationships with Managers a_2
Relationships with Managers and Franchisors (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Relationships With Managers [Abstract] | |
Summary of Management Fees from Continuing Operations | The following is a summary of management fees for the years ended December 31, 2019 , 2018 and 2017 (in thousands): Year Ended December 31, 2019 2018 2017 Base management fees $ 21,712 $ 20,467 $ 22,265 Incentive management fees 5,705 5,805 6,259 Amortization of deferred income related to key money (227 ) (2,398 ) (4,840 ) Amortization of unfavorable contract liabilities (1,715 ) (1,715 ) (1,715 ) Total management fees, net $ 25,475 $ 22,159 $ 21,969 |
Schedule of franchise fees | The following is a summary of franchise fees for the years ended December 31, 2019 , 2018 and 2017 (in thousands): Year Ended December 31, 2019 2018 2017 Franchise fees $ 27,102 $ 26,348 $ 24,890 Amortization of deferred income related to key money (1) (170 ) (170 ) (920 ) Total franchise fees, net $ 26,932 $ 26,178 $ 23,970 _____________________________ (1) Relates to key money received for the Lexington Hotel New York. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Current and Future Minimum Rental Payments for Ground Leases | The following table reflects the current and future annual rents under our ground leases: Property Term (1) Annual Rent Bethesda Marriott Suites Through 4/2087 $824,341 (2) Courtyard Manhattan/Fifth Avenue (3) 10/2007 - 9/2017 $906,000 10/2017 - 9/2027 $1,132,812 10/2027 - 9/2037 $1,416,015 10/2037 - 9/2047 $1,770,019 10/2047 - 9/2057 $2,212,524 10/2057 - 9/2067 $2,765,655 10/2067 - 9/2077 $3,457,069 10/2077 - 9/2085 $4,321,336 Salt Lake City Marriott Downtown (Ground lease for hotel) (4) Through 12/2056 Greater of $132,000 or 2.6% of annual gross room sales Salt Lake City Marriott Downtown (Ground lease for extension) 1/2013 - 12/2016 $11,305 1/2017 - 12/2017 $13,000 1/2018 - 12/2056 (5) $13,500 Westin Boston Waterfront Hotel (6) (Base rent) 1/2016 - 12/2020 $750,000 1/2021 - 12/2025 $1,000,000 1/2026 - 12/2030 $1,500,000 1/2031 - 12/2035 $1,750,000 1/2036 - 5/2099 No base rent Westin Boston Waterfront Hotel (Percentage rent) Through 5/2015 0% of annual gross revenue 6/2016 - 5/2026 1.0% of annual gross revenue 6/2026 - 5/2036 1.5% of annual gross revenue 6/2036 - 5/2046 2.75% of annual gross revenue 6/2046 - 5/2056 3.0% of annual gross revenue 6/2056 - 5/2066 3.25% of annual gross revenue 6/2066 - 5/2099 3.5% of annual gross revenue JW Marriott Denver at Cherry Creek 1/2016 - 12/2020 $50,000 1/2021 - 12/2025 $55,000 1/2026 - 12/2030 (7) $60,000 Shorebreak Hotel Through 4/2016 $115,542 5/2016 - 4/2021 (8) $126,649 Orchards Inn Sedona Through 6/2018 $117,780 7/2018 - 12/2070 $123,499 (9) Hotel Palomar Phoenix (Base Rent) Through 3/2020 $16,875 4/2020 - 3/2021 $33,750 4/2021 - 3/2085 $34,594 (10) Hotel Palomar Phoenix (Government Property Lease Excise Tax) (11) 1/2022 - 12/2023 $390,000 1/2024 - 12/2033 $312,000 1/2034 - 12/2043 $234,000 1/2044 - 12/2053 $156,000 1/2054 - 12/2063 $78,000 1/2064 - 3/2085 $— Cavallo Point (Base Rent) Through 12/2018 $1 1/2019 - 12/2066 $67,034 (12) Cavallo Point (13) (Percentage Rent) Through 12/2018 1.0% of adjusted gross revenue over threshold 1/2019 - 12/2023 2.0% of adjusted gross revenue over threshold 1/2024 - 12/2028 3.0% of adjusted gross revenue over threshold 1/2029 - 12/2033 4.0% of adjusted gross revenue over threshold 1/2034 - 12/2066 5.0% of adjusted gross revenue over threshold Cavallo Point (14) (Participation Rent) Through 12/2066 10.0% of adjusted gross revenue over threshold Property Term (1) Annual Rent Renaissance Worthington garage ground lease 8/2013 - 7/2022 $40,400 8/2022 - 7/2037 $46,081 8/2037 - 7/2052 $51,763 8/2052 - 7/2067 $57,444 __________ (1) These terms assume our exercise of all renewal options. (2) Represents rent for the year ended December 31, 2019. Rent increases annually by 5.5%. (3) The total annual rent includes the fixed rent noted in the table plus a percentage rent equal to 5% of gross receipts for each lease year, but only to the extent that 5% of gross receipts exceeds the minimum fixed rent in such lease year. There was no such percentage rent earned during the year ended December 31, 2019. (4) We own a 21% interest in the land underlying the hotel and, as a result, 21% of the annual rent under the ground lease is paid to us by the hotel. (5) Rent will increase from the prior year's rent based on a Consumer Price Index calculation on each January 1, beginning January 1, 2019 and through the end of the lease. (6) Total annual rent under the ground lease is capped at 2.5% of hotel gross revenues during the initial 30 years of the ground lease. (7) Beginning January 2031, we have the right to renew the ground lease in one-year increments at the prior year's annual rent plus 3%. (8) Rent will increase on May 1, 2021 and every five years thereafter based on a Consumer Price Index calculation. (9) Represents rent from July 2019 through June 2020. On July 1, 2018, rent increased based on a Consumer Price Index calculation, and will continue to do so annually through the end of the lease. (10) Represents rent from April 2021 through March 2022. Rent increases annually each April by 2.5%. (11) As lessee of government property, the hotel is subject to a Government Property Lease Excise Tax ("GPLET") under Arizona state statute with payments beginning in 2022. (12) Base rent increases in January 2019 and resets every five years based on the average of the previous three years of adjusted gross revenues, as defined in the ground lease, multiplied by 75%. (13) Percentage rent is applied to annual adjusted gross revenues, as defined in the ground lease, between $30 million and the participation rent threshold. Base rent is deducted from the percentage rent. (14) Participation rent is applied to annual adjusted gross revenues, as defined in the ground lease, over $40 million in 2018, $42 million in 2019, and $42 million plus an annual increase based on a Consumer Price Index calculation for 2020 and every year thereafter through the end of the lease term. |
Fair Value Measurements and I_2
Fair Value Measurements and Interest Rate Swaps (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 December 31, 2019 and 2018 , in thousands, are as follows: December 31, 2019 December 31, 2018 Carrying Amount (1) Fair Value Carrying Amount (1) Fair Value Debt $ 1,090,099 $ 1,110,353 $ 977,966 $ 960,447 Interest rate swap liabilities $ 2,545 $ 2,545 $ — $ — _______________ (1) The carrying amount of debt is net of unamortized debt issuance costs. |
Schedule of Interest Rate Derivatives | The Company's interest rate derivatives, which are not designated or accounted for as cash flow hedges, consisted of the following as of December 31, 2019 and 2018 , in thousands: Fair Value of Assets (Liabilities) Hedged Debt Type Rate Fixed Index Effective Date Maturity Date Notional Amount December 31, 2019 December 31, 2018 $50 million term loan Swap 2.41 % 1-Month LIBOR January 7, 2019 October 18, 2023 $ 50,000 $ (1,597 ) $ — $350 million term loan Swap 1.70 % 1-Month LIBOR July 25, 2019 July 25, 2024 $ 175,000 (948 ) — $ (2,545 ) $ — |
Quarterly Operating Results (_2
Quarterly Operating Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | 2019 Quarter Ended March 31 June 30 September 30 December 31 (In thousands, except per share data) Total revenue $ 202,375 $ 257,918 $ 240,279 $ 237,519 Total operating expenses 185,885 211,960 211,033 75,214 Operating income $ 16,490 $ 45,958 $ 29,246 $ 162,305 Net income $ 8,980 $ 29,074 $ 11,574 $ 134,583 Net income attributable to common stockholders $ 8,945 $ 28,960 $ 11,529 $ 134,053 Net income per share available to common stockholders—basic $ 0.04 $ 0.14 $ 0.06 $ 0.67 Net income per share available to common stockholders—diluted $ 0.04 $ 0.14 $ 0.06 $ 0.66 2018 Quarter Ended March 31 June 30 September 30 December 31 (In thousands, except per share data) Total revenue $ 181,530 $ 237,949 $ 220,818 $ 223,407 Total operating expenses 168,011 200,012 176,589 189,031 Operating income $ 13,519 $ 37,937 $ 44,229 $ 34,376 Net income $ 4,338 $ 28,009 $ 31,443 $ 24,006 Net income attributable to common stockholders $ 4,338 $ 28,009 $ 31,443 $ 23,994 Net income per share available to common stockholders—basic $ 0.02 $ 0.14 $ 0.15 $ 0.12 Net income per share available to common stockholders—diluted $ 0.02 $ 0.14 $ 0.15 $ 0.12 |
Organization - Narrative (Detai
Organization - Narrative (Details) | 12 Months Ended |
Dec. 31, 2019hotelroom | |
Real Estate Properties [Line Items] | |
Number of hotels (in hotels) | 31 |
Number of rooms in hotels, resorts and senior loan secured facility (in rooms) | room | 10,102 |
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 |
Sedona, Arizona | |
Real Estate Properties [Line Items] | |
Number of hotels (in hotels) | 2 |
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) | 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 |
DiamondRock Hospitality Limited Partnership | |
Real Estate Properties [Line Items] | |
Ownership interest | 99.60% |
Limited partner, ownership interest | 0.40% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) | 1 Months Ended | 2 Months Ended | 12 Months Ended | |||||
Dec. 31, 2019 | Jun. 30, 2019 | Jul. 31, 2018 | Feb. 26, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Property, Plant and Equipment [Line Items] | ||||||||
Unrecognized tax benefits | $ 0 | $ 0 | $ 0 | |||||
Proceeds from insurance settlement, property and business interruption | 246,800,000 | 142,500,000 | 85,000,000 | $ 10,000,000 | ||||
Insured event, gain | 144,192,000 | 1,724,000 | 0 | |||||
Gain on business interruption insurance | 8,822,000 | 19,379,000 | 4,051,000 | |||||
Lease liabilities | 103,625,000 | 103,625,000 | ||||||
Right-of-use assets | 98,145,000 | $ 98,145,000 | ||||||
Minimum | Buildings, Land Improvements, and Building Improvements | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Property, plant and equipment, useful life (in years) | 5 years | |||||||
Minimum | Furniture, Fixtures and Equipment | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Property, plant and equipment, useful life (in years) | 1 year | |||||||
Maximum | Buildings, Land Improvements, and Building Improvements | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Property, plant and equipment, useful life (in years) | 40 years | |||||||
Maximum | Furniture, Fixtures and Equipment | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Property, plant and equipment, useful life (in years) | 10 years | |||||||
Frenchman's Reef | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Proceeds from insurance settlement, property and business interruption | $ 238,500,000 | |||||||
Proceeds from insurance settlement, business interruption | $ 1,400,000 | |||||||
Gain on business interruption insurance | $ 8,822,000 | 16,090,000 | 3,128,000 | |||||
Havana Cabana Key West | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Proceeds from insurance settlement, property and business interruption | $ 8,300,000 | |||||||
Insured event, gain | 1,700,000 | |||||||
Gain on business interruption insurance | 0 | 2,137,000 | 923,000 | |||||
The Lodge at Sonoma | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Proceeds from insurance settlement, business interruption | $ 1,300,000 | |||||||
Gain on business interruption insurance | $ 0 | $ 1,152,000 | $ 0 | |||||
Accounting Standards Update 2016-02 | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Lease liabilities | $ 101,200,000 | |||||||
Right-of-use assets | $ 99,600,000 | |||||||
Subsequent Event | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Proceeds from insurance settlement, property and business interruption | $ 10,700,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Gain on Business Interruption (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Interruption Loss [Line Items] | |||
Gain on business interruption insurance | $ 8,822 | $ 19,379 | $ 4,051 |
Frenchman's Reef | |||
Business Interruption Loss [Line Items] | |||
Gain on business interruption insurance | 8,822 | 16,090 | 3,128 |
Havana Cabana Key West | |||
Business Interruption Loss [Line Items] | |||
Gain on business interruption insurance | 0 | 2,137 | 923 |
The Lodge at Sonoma | |||
Business Interruption Loss [Line Items] | |||
Gain on business interruption insurance | $ 0 | $ 1,152 | $ 0 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property and Equipment | ||
Property and equipment, at cost | $ 4,038,545 | $ 3,838,053 |
Less: accumulated depreciation | (1,011,776) | (893,436) |
Property and equipment, net | 3,026,769 | 2,944,617 |
Land | ||
Property and Equipment | ||
Property and equipment, at cost | 617,695 | 617,695 |
Land improvements | ||
Property and Equipment | ||
Property and equipment, at cost | 7,994 | 7,994 |
Buildings | ||
Property and Equipment | ||
Property and equipment, at cost | 2,751,590 | 2,682,320 |
Furniture, fixtures and equipment | ||
Property and Equipment | ||
Property and equipment, at cost | 534,802 | 491,421 |
Construction in progress | ||
Property and Equipment | ||
Property and equipment, at cost | $ 126,464 | $ 38,623 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | ||
Accrued capital expenditures | $ 13.1 | $ 12.4 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Dec. 31, 2019 |
Leases [Abstract] | |
Weighted-average remaining lease term | 66 years |
Weighted-average discount rate | 5.77% |
Leases - Lease Cost and Other
Leases - Lease Cost and Other Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 11,248 |
Variable lease payments | 1,466 |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 3,239 |
Leases - Operating Lease Maturi
Leases - Operating Lease Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2020 | $ 3,315 | |
2021 | 4,805 | |
2022 | 3,940 | |
2023 | 3,997 | |
2024 | 3,976 | |
Thereafter | 759,124 | |
Total lease payments | 779,157 | |
Less imputed interest | (675,532) | |
Total lease liabilities | $ 103,625 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2020 | $ 5,232 | |
2021 | 4,866 | |
2022 | 6,132 | |
2023 | 5,122 | |
2024 | 5,096 | |
Thereafter | 636,770 | |
Total | $ 663,218 |
Equity - Narrative (Details)
Equity - Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($)vote$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($) | Feb. 28, 2020USD ($) | |
Dividends Payable [Line Items] | ||||
Common stock, shares authorized (in shares) | shares | 400,000,000 | 400,000,000 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||
Common stock votes | vote | 1 | |||
Payments for Repurchase of Common Stock | $ 42,828,000 | $ 32,182,000 | $ 0 | |
Common stock repurchased and retired | $ 42,828,000 | $ 32,182,000 | ||
Preferred stock, shares authorized (in shares) | 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) | shares | 0 | 0 | ||
Distribution per unit (in dollars per share) | $ / shares | $ 11.76 | |||
Operating partnership units option to redeem for common stock | 1 | |||
Unaffiliated Third Parties | ||||
Dividends Payable [Line Items] | ||||
Units of partnership interest, amount (in shares) | shares | 792,131 | 796,684 | ||
Common Stock | ||||
Dividends Payable [Line Items] | ||||
Aggregate offering price | $ 200,000,000 | |||
Amount authorized to be repurchased | $ 250,000,000 | |||
Shares repurchased during period (in shares) | shares | 4,428,947 | 3,384,359 | ||
Average cost per share (in dollars per share) | $ / shares | $ 9.65 | |||
Payments for Repurchase of Common Stock | $ 42,800,000 | |||
Common stock repurchased and retired | $ 44,000 | $ 34,000 | ||
Subsequent Event | ||||
Dividends Payable [Line Items] | ||||
Value amount of shares authorized to be repurchased (up to) | $ 175,200,000 |
Equity - Schedule of Dividends
Equity - Schedule of Dividends Payable (Details) - $ / shares | Jan. 13, 2020 | Oct. 11, 2019 | Jul. 12, 2019 | Apr. 12, 2019 | Jan. 14, 2019 | Oct. 12, 2018 | Jul. 12, 2018 | Apr. 12, 2018 |
Dividends Payable [Line Items] | ||||||||
Payment Date | Oct. 11, 2019 | Jul. 12, 2019 | Apr. 12, 2019 | Jan. 14, 2019 | Oct. 12, 2018 | Jul. 12, 2018 | Apr. 12, 2018 | |
Record Date | Sep. 30, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Jan. 4, 2019 | Sep. 28, 2018 | Jun. 29, 2018 | Mar. 29, 2018 | |
Dividends per share (in dollars per share) | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | |
Subsequent Event | ||||||||
Dividends Payable [Line Items] | ||||||||
Payment Date | Jan. 13, 2020 | |||||||
Record Date | Jan. 2, 2020 | |||||||
Dividends per share (in dollars per share) | $ 0.125 |
Stock Incentive Plans - Narrati
Stock Incentive Plans - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based payment, vesting period (years) | 3 years | ||
Expected to vest one year from balance sheet date (in shares) | 237,866 | ||
Expected to vest two years from balance sheet date (in shares) | 139,152 | ||
Expected to vest three years from balance sheet date (in shares) | 32,005 | ||
Expected to vest four years from balance sheet (in shares) | 63,976 | ||
Unrecognized compensation cost | $ 2,900,000 | ||
Unrecognized compensation expense related to compensation awards, period for recognition (in months) | 22 months | ||
Compensation expense | $ 2,600,000 | $ 3,100,000 | $ 3,100,000 |
Number of shares, Granted (in shares) | 162,806 | 349,091 | 324,502 |
Weighted-average grant date fair value, Granted (in dollars per share) | $ 10.38 | $ 10.19 | $ 11.19 |
Number of shares, Vested (in shares) | 310,117 | 287,148 | 244,411 |
Performance Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based payment, vesting period (years) | 3 years | ||
Expected to vest one year from balance sheet date (in shares) | 243,022 | ||
Expected to vest two years from balance sheet date (in shares) | 287,477 | ||
Expected to vest three years from balance sheet date (in shares) | 266,033 | ||
Unrecognized compensation cost | $ 3,000,000 | ||
Unrecognized compensation expense related to compensation awards, period for recognition (in months) | 21 months | ||
Performance period | 3 years | ||
Maximum possible payout to executive officer as a percentage of the target award (as a percent) | 150.00% | ||
Compensation expense | $ 2,400,000 | $ 1,900,000 | $ 2,500,000 |
Compensation expense, forfeitures | $ 1,000,000 | ||
Number of shares, Granted (in shares) | 296,050 | 293,111 | 266,009 |
Weighted-average grant date fair value, Granted (in dollars per share) | $ 10.14 | $ 9.82 | $ 11.04 |
Number of shares, Vested (in shares) | 251,375 | 218,514 | 200,374 |
Long-Term Incentive Plan Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 1,900,000 | ||
Unrecognized compensation expense related to compensation awards, period for recognition (in months) | 26 months | ||
Compensation expense | $ 700,000 | $ 0 | $ 0 |
Number of shares, Granted (in shares) | 281,925 | ||
Weighted-average grant date fair value, Granted (in dollars per share) | $ 10.65 | ||
Number of shares, Vested (in shares) | 0 | ||
2016 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option and Incentive plan, shares authorized (in shares) | 6,082,664 | ||
Number of shares issued or committed to issue (in shares) | 1,351,686 | ||
Maximum | Performance Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of total stockholder return for payout of shares (as a percent) | 30.00% | ||
Minimum | Performance Stock Units | Executive Officer | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of total stockholder return for payout of shares (as a percent) | 75.00% |
Stock Incentive Plans - Restric
Stock Incentive Plans - Restricted Stock Awards (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted Stock | |||
Number of Units | |||
Number of shares, Beginning Balance (in shares) | 641,844 | 630,962 | 567,540 |
Number of shares, Granted (in shares) | 162,806 | 349,091 | 324,502 |
Number of shares, Forfeited (in shares) | (21,534) | (51,061) | (16,669) |
Number of shares, Vested (in shares) | (310,117) | (287,148) | (244,411) |
Number of shares, Ending Balance (in shares) | 472,999 | 641,844 | 630,962 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Weighted-average grant date fair value, Beginning balance (in dollars per share) | $ 10.25 | $ 10.66 | $ 10.62 |
Weighted-average grant date fair value, Granted (in dollars per share) | 10.38 | 10.19 | 11.19 |
Weighted-average grant date fair value, Forfeited (in dollars per share) | 10.37 | 10.44 | 10.80 |
Weighted-average grant date fair value, Vested (in dollars per share) | 10.08 | 11.02 | 11.29 |
Weighted-average grant date fair value, Ending balance (in dollars per share) | $ 10.40 | $ 10.25 | $ 10.66 |
Performance Shares | |||
Number of Units | |||
Number of shares, Beginning Balance (in shares) | 781,923 | 785,797 | 686,684 |
Number of shares, Granted (in shares) | 296,050 | 293,111 | 266,009 |
Number of shares, Forfeited (in shares) | (70,728) | (113,668) | |
Number of shares, Vested (in shares) | (251,375) | (218,514) | (200,374) |
Number of shares, Ending Balance (in shares) | 796,532 | 781,923 | 785,797 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Weighted-average grant date fair value, Beginning balance (in dollars per share) | $ 11.19 | $ 10.42 | $ 10.65 |
Weighted-average grant date fair value, Granted (in dollars per share) | 10.14 | 9.82 | 11.04 |
Weighted-average grant date fair value, Forfeited (in dollars per share) | 9.93 | 9.86 | |
Weighted-average grant date fair value, Vested (in dollars per share) | 8.80 | 11.98 | 12.15 |
Weighted-average grant date fair value, Ending balance (in dollars per share) | $ 11.16 | $ 11.19 | $ 10.42 |
Stock Incentive Plans - Perform
Stock Incentive Plans - Performance Stock Units Issued (Details) - Executive Officer - Performance Stock Units | 12 Months Ended |
Dec. 31, 2019 | |
2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total Shareholder Return | 100.00% |
Hotel Market Share | 0.00% |
2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total Shareholder Return | 100.00% |
Hotel Market Share | 0.00% |
2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total Shareholder Return | 75.00% |
Hotel Market Share | 25.00% |
2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total Shareholder Return | 50.00% |
Hotel Market Share | 50.00% |
2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total Shareholder Return | 50.00% |
Hotel Market Share | 50.00% |
2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total Shareholder Return | 50.00% |
Hotel Market Share | 50.00% |
Stock Incentive Plans - Fair Va
Stock Incentive Plans - Fair Value Valuation Assumptions (Details) - Performance Stock Units - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant date fair value, Granted (in dollars per share) | $ 10.14 | $ 9.82 | $ 11.04 |
February 26, 2017 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility | 26.70% | ||
Risk-Free Rate | 1.46% | ||
Weighted-average grant date fair value, Granted (in dollars per share) | $ 10.89 | ||
March 2, 2018 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility | 26.90% | ||
Risk-Free Rate | 2.40% | ||
Weighted-average grant date fair value, Granted (in dollars per share) | $ 9.52 | ||
April 2, 2018 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility | 26.90% | ||
Risk-Free Rate | 2.37% | ||
Weighted-average grant date fair value, Granted (in dollars per share) | $ 9 | ||
March 1, 2019 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility | 24.30% | ||
Risk-Free Rate | 2.54% | ||
Weighted-average grant date fair value, Granted (in dollars per share) | $ 9.68 |
Stock Incentive Plans - Perfo_2
Stock Incentive Plans - Performance Stock Units (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Weighted- Average Grant Date Fair Value | |||
Stock of common stock earned for the PSUs vested (as a percent) | 0.00% | ||
Performance Stock Units | |||
Number of Units | |||
Number of shares, Beginning Balance (in shares) | 781,923 | 785,797 | 686,684 |
Number of shares, Granted (in shares) | 296,050 | 293,111 | 266,009 |
Number of shares, Additional units from dividends | 40,662 | 35,197 | 33,478 |
Number of shares, Vested (in shares) | (251,375) | (218,514) | (200,374) |
Number of shares, Forfeited (in shares) | (70,728) | (113,668) | |
Number of shares, Ending Balance (in shares) | 796,532 | 781,923 | 785,797 |
Weighted- Average Grant Date Fair Value | |||
Weighted-average grant date fair value, Beginning balance (in dollars per share) | $ 11.19 | $ 10.42 | $ 10.65 |
Weighted-average grant date fair value, Granted (in dollars per share) | 10.14 | 9.82 | 11.04 |
Weighted-average grant date fair value, Additional shares from dividends (in dollars per share) | 10 | 11.24 | 11.17 |
Weighted-average grant date fair value, Vested (in dollars per share) | 8.80 | 11.98 | 12.15 |
Weighted-average grant date fair value, Forfeited (in dollars per share) | 9.93 | 9.86 | |
Weighted-average grant date fair value, Ending balance (in dollars per share) | $ 11.16 | $ 11.19 | $ 10.42 |
Stock of common stock earned for the PSUs vested (as a percent) | 74.33% | 51.75% | |
Share based payment, vesting period (years) | 3 years |
Stock Incentive Plans - Stock A
Stock Incentive Plans - Stock Awards Activity (Details) - Long-Term Incentive Plan Unit | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Number of Units | |
Number of shares, Beginning Balance (in shares) | shares | 0 |
Number of shares, Granted (in shares) | shares | 281,925 |
Number of shares, Forfeited (in shares) | shares | (37,559) |
Number of shares, Ending Balance (in shares) | shares | 244,366 |
Weighted- Average Grant Date Fair Value | |
Weighted-average grant date fair value, Beginning balance (in dollars per share) | $ / shares | $ 0 |
Weighted-average grant date fair value, Granted (in dollars per share) | $ / shares | 10.65 |
Weighted-average grant date fair value, Forfeited (in dollars per share) | $ / shares | 10.65 |
Weighted-average grant date fair value, Ending balance (in dollars per share) | $ / shares | $ 10.65 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | |||||||||||
Net income attributable to common stockholders | $ 134,053 | $ 11,529 | $ 28,960 | $ 8,945 | $ 23,994 | $ 31,443 | $ 28,009 | $ 4,338 | $ 183,487 | $ 87,784 | $ 91,877 |
Distributions declared on unvested share-based compensation | (132) | 0 | 0 | ||||||||
Net income available to common stockholders | $ 183,355 | $ 87,784 | $ 91,877 | ||||||||
Denominator: | |||||||||||
Weighted-average number of common shares outstanding—basic (in shares) | 202,009,750 | 205,462,911 | 200,784,450 | ||||||||
Effect of dilutive securities: | |||||||||||
Unvested restricted common stock (in shares) | 156,146 | 215,655 | 188,759 | ||||||||
Shares related to unvested PSUs (in shares) | 575,734 | 452,584 | 548,259 | ||||||||
Weighted-average number of common shares outstanding—diluted (in shares) | 202,741,630 | 206,131,150 | 201,521,468 | ||||||||
Net income per share available to common stockholders - basic (in dollars per share) | $ 0.67 | $ 0.06 | $ 0.14 | $ 0.04 | $ 0.12 | $ 0.15 | $ 0.14 | $ 0.02 | $ 0.91 | $ 0.43 | $ 0.46 |
Net income per share available to common stockholders - diluted (in dollars per share) | $ 0.66 | $ 0.06 | $ 0.14 | $ 0.04 | $ 0.12 | $ 0.15 | $ 0.14 | $ 0.02 | $ 0.90 | $ 0.43 | $ 0.46 |
Debt - Schedule of Long Term De
Debt - Schedule of Long Term Debt (Details) - USD ($) | Jul. 25, 2019 | Dec. 31, 2019 | Jul. 31, 2019 | Jul. 24, 2019 | Jan. 07, 2019 | Dec. 31, 2018 | Mar. 01, 2018 |
Debt Instrument [Line Items] | |||||||
Principal Balance | $ 1,019,569,000 | ||||||
Total mortgage and other debt, net of unamortized debt issuance costs | 616,329,000 | $ 629,747,000 | |||||
Total debt | 1,090,099,000 | 977,966,000 | |||||
Senior unsecured credit facility | $ 75,000,000 | 0 | |||||
Weighted-Average Interest Rate | 3.81% | ||||||
Unsecured Term Loan Due October 2023 | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate at period end | 2.41% | ||||||
Mortgages | |||||||
Debt Instrument [Line Items] | |||||||
Unamortized debt issuance costs | $ (3,240,000) | (4,017,000) | |||||
Total mortgage and other debt, net of unamortized debt issuance costs | 616,329,000 | 629,747,000 | |||||
Unsecured term loan | |||||||
Debt Instrument [Line Items] | |||||||
Unamortized debt issuance costs | (1,230,000) | (1,781,000) | |||||
Total debt | $ 398,770,000 | 348,219,000 | |||||
Unsecured term loan | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.35% | ||||||
Unsecured term loan | Unsecured Term Loan Due May 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Principal Balance | $ 0 | 100,000,000 | |||||
Interest rate description | LIBOR + 1.45% | ||||||
Unsecured term loan | Unsecured Term Loan Due May 2021 | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.45% | ||||||
Unsecured term loan | Unsecured Term Loan Due April 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Principal Balance | $ 0 | 200,000,000 | |||||
Interest rate description | LIBOR + 1.45% | ||||||
Unsecured term loan | Unsecured Term Loan Due April 2022 | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.45% | ||||||
Unsecured term loan | Unsecured Term Loan Due October 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Principal Balance | $ 50,000,000 | $ 50,000,000 | 50,000,000 | ||||
Interest rate description | LIBOR + 1.40% | ||||||
Unsecured term loan | Unsecured Term Loan Due October 2023 | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.40% | ||||||
Unsecured term loan | Unsecured Term Loan Due July 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Principal Balance | $ 350,000,000 | 0 | |||||
Interest rate description | LIBOR + 1.40% | ||||||
Unsecured term loan | Unsecured Term Loan Due July 2024 | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.40% | ||||||
Unsecured term loan | Unsecured Term Loan, $175 million | |||||||
Debt Instrument [Line Items] | |||||||
Principal Balance | $ 175,000,000 | ||||||
Unsecured term loan | Unsecured Term Loan, $175 million | London Interbank Offered Rate (LIBOR) Swap Rate | Interest Rate Swap | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.70% | ||||||
Senior unsecured credit facility | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate description | LIBOR + 1.45% | ||||||
Senior unsecured credit facility | $ 75,000,000 | 0 | |||||
Senior unsecured credit facility | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.40% | ||||||
Senior unsecured credit facility | Senior Unsecured Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 400,000,000 | $ 300,000,000 | |||||
Senior unsecured credit facility | Senior Unsecured Credit Facility | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.45% | ||||||
Salt Lake City Marriott Downtown mortgage loan | Mortgages | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rate | 4.25% | ||||||
Principal Balance | $ 53,273,000 | 55,032,000 | |||||
Westin Washington D.C. City Center mortgage loan | Mortgages | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rate | 3.99% | ||||||
Principal Balance | $ 60,550,000 | 62,734,000 | |||||
The Lodge at Sonoma, a Renaissance Resort & Spa mortgage loan | Mortgages | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rate | 3.96% | ||||||
Principal Balance | $ 26,963,000 | 27,633,000 | |||||
Westin San Diego mortgage loan | Mortgages | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rate | 3.94% | ||||||
Principal Balance | $ 61,851,000 | 63,385,000 | |||||
Courtyard Manhattan / Midtown East mortgage loan | Mortgages | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rate | 4.40% | ||||||
Principal Balance | $ 81,107,000 | 82,620,000 | |||||
Renaissance Worthington mortgage loan | Mortgages | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rate | 3.66% | ||||||
Principal Balance | $ 80,904,000 | 82,540,000 | |||||
JW Marriott Denver at Cherry Creek | Mortgages | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rate | 4.33% | ||||||
Principal Balance | $ 61,253,000 | 62,411,000 | |||||
Boston Westin mortgage loan | Mortgages | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rate | 4.36% | ||||||
Principal Balance | $ 190,725,000 | 194,466,000 | |||||
New Market Tax Credit loan | Mortgages | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rate | 5.17% | ||||||
Principal Balance | $ 2,943,000 | $ 2,943,000 | $ 2,900,000 |
Debt - Schedule of Maturities o
Debt - Schedule of Maturities of Long Term Debt (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
2020 | $ 69,116 |
2021 | 13,518 |
2022 | 14,096 |
2023 | 194,650 |
2024 | 432,381 |
Thereafter | 295,808 |
Total debt | $ 1,019,569 |
Debt - Mortgage Debt (Details)
Debt - Mortgage Debt (Details) $ in Thousands | Dec. 31, 2019USD ($)hotel | Dec. 31, 2018USD ($) | Mar. 01, 2018USD ($) |
Debt Instrument [Line Items] | |||
Number of hotel properties secured by mortgage debt (in hotels) | hotel | 8 | ||
Number of hotels (in hotels) | hotel | 31 | ||
Principal Balance | $ | $ 1,019,569 | ||
Mortgages | New Market Tax Credit loan | |||
Debt Instrument [Line Items] | |||
Principal Balance | $ | $ 2,943 | $ 2,943 | $ 2,900 |
Interest Rate | 5.17% |
Debt - Senior Unsecured Credit
Debt - Senior Unsecured Credit Facility (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 26, 2020 | Jul. 25, 2019 | Jul. 24, 2019 | |
Line of Credit Facility [Line Items] | ||||||
Percent of unused portion, line of credit facility, triggering lower commitment fee percentage | 50.00% | |||||
Senior unsecured credit facility | $ 75,000,000 | $ 0 | ||||
Subsequent Event | ||||||
Line of Credit Facility [Line Items] | ||||||
Senior unsecured credit facility | $ 75,000,000 | |||||
Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Commitment fee on unused percentage | 0.20% | |||||
Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Commitment fee on unused percentage | 0.30% | |||||
Senior unsecured credit facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Senior unsecured credit facility | $ 75,000,000 | 0 | ||||
Interest and unused credit facility fees | $ 3,700,000 | $ 1,200,000 | $ 1,000,000 | |||
Senior unsecured credit facility | LIBOR | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 1.40% | |||||
Senior Unsecured Credit Facility | Senior unsecured credit facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 400,000,000 | $ 300,000,000 | ||||
Accordion feature, higher borrowing capacity | $ 600,000,000 | |||||
Senior Unsecured Credit Facility | Senior unsecured credit facility | LIBOR | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 1.45% | |||||
Senior Unsecured Credit Facility | Senior unsecured credit facility | LIBOR | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 1.50% | |||||
Senior Unsecured Credit Facility | Senior unsecured credit facility | LIBOR | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 2.25% |
Debt - Schedule of Ratio of Net
Debt - Schedule of Ratio of Net Indebtedness (Details) - Line of Credit | 12 Months Ended |
Dec. 31, 2019 | |
Less than or equal to 30% | Maximum | |
Line Of Credit Facility Leverage Range [Line Items] | |
Leverage Ratio | 0.30 |
Greater than 30% but less than or equal to 35% | Minimum | |
Line Of Credit Facility Leverage Range [Line Items] | |
Leverage Ratio | 0.30 |
Greater than 30% but less than or equal to 35% | Maximum | |
Line Of Credit Facility Leverage Range [Line Items] | |
Leverage Ratio | 0.35 |
Greater than 35% but less than or equal to 40% | Minimum | |
Line Of Credit Facility Leverage Range [Line Items] | |
Leverage Ratio | 0.35 |
Greater than 35% but less than or equal to 40% | Maximum | |
Line Of Credit Facility Leverage Range [Line Items] | |
Leverage Ratio | 0.4 |
Greater than 40% but less than or equal to 45% | Minimum | |
Line Of Credit Facility Leverage Range [Line Items] | |
Leverage Ratio | 0.4 |
Greater than 40% but less than or equal to 45% | Maximum | |
Line Of Credit Facility Leverage Range [Line Items] | |
Leverage Ratio | 0.45 |
Greater than 45% but less than or equal to 50% | Minimum | |
Line Of Credit Facility Leverage Range [Line Items] | |
Leverage Ratio | 0.45 |
Greater than 45% but less than or equal to 50% | Maximum | |
Line Of Credit Facility Leverage Range [Line Items] | |
Leverage Ratio | 0.5 |
Greater than 50% but less than or equal to 55% | Minimum | |
Line Of Credit Facility Leverage Range [Line Items] | |
Leverage Ratio | 0.5 |
Greater than 50% but less than or equal to 55% | Maximum | |
Line Of Credit Facility Leverage Range [Line Items] | |
Leverage Ratio | 0.55 |
Greater than 55% | Minimum | |
Line Of Credit Facility Leverage Range [Line Items] | |
Leverage Ratio | 0.55 |
LIBOR | |
Line Of Credit Facility Leverage Range [Line Items] | |
Applicable Margin | 1.40% |
LIBOR | Less than or equal to 30% | |
Line Of Credit Facility Leverage Range [Line Items] | |
Applicable Margin | 1.40% |
LIBOR | Greater than 30% but less than or equal to 35% | |
Line Of Credit Facility Leverage Range [Line Items] | |
Applicable Margin | 1.45% |
LIBOR | Greater than 35% but less than or equal to 40% | |
Line Of Credit Facility Leverage Range [Line Items] | |
Applicable Margin | 1.50% |
LIBOR | Greater than 40% but less than or equal to 45% | |
Line Of Credit Facility Leverage Range [Line Items] | |
Applicable Margin | 1.55% |
LIBOR | Greater than 45% but less than or equal to 50% | |
Line Of Credit Facility Leverage Range [Line Items] | |
Applicable Margin | 1.70% |
LIBOR | Greater than 50% but less than or equal to 55% | |
Line Of Credit Facility Leverage Range [Line Items] | |
Applicable Margin | 1.90% |
LIBOR | Greater than 55% | |
Line Of Credit Facility Leverage Range [Line Items] | |
Applicable Margin | 2.05% |
Debt - Schedule of Debt Covenan
Debt - Schedule of Debt Covenants (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Line Of Credit Facility Covenant | |
Line of Credit Facility [Line Items] | |
Maximum leverage ratio | 0.60 |
Minimum fixed charge coverage ratio | 1.50 |
Secured recourse indebtedness | 45.00% |
Unencumbered leverage ratio | 60.00% |
Unencumbered implied debt service coverage ratio | 1.20 |
Line Of Credit Facility Covenant Actual Results | |
Line of Credit Facility [Line Items] | |
Maximum leverage ratio | 0.285 |
Minimum fixed charge coverage ratio | 3.49 |
Secured recourse indebtedness | 18.60% |
Unencumbered leverage ratio | 26.00% |
Unencumbered implied debt service coverage ratio | 2.84 |
Debt - Unsecured Term Loans (De
Debt - Unsecured Term Loans (Details) | 12 Months Ended | |||||
Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jul. 31, 2019USD ($) | Jul. 25, 2019USD ($) | Jan. 07, 2019 | |
Line Of Credit Facility Leverage Range [Line Items] | ||||||
Number of term loans | loan | 2 | |||||
Outstanding principal balance | $ 1,019,569,000 | |||||
Loss on early extinguishment of debt | $ 2,373,000 | $ 0 | $ 274,000 | |||
LIBOR | Unsecured Term Loan Due October 2023 | ||||||
Line Of Credit Facility Leverage Range [Line Items] | ||||||
Interest rate at period end | 2.41% | |||||
Less than or equal to 30% | LIBOR | $100 Million and $200 Million Term Loans | ||||||
Line Of Credit Facility Leverage Range [Line Items] | ||||||
Basis spread on variable rate | 1.35% | |||||
Greater than 30% but less than or equal to 35% | LIBOR | $100 Million and $200 Million Term Loans | ||||||
Line Of Credit Facility Leverage Range [Line Items] | ||||||
Basis spread on variable rate | 1.40% | |||||
Greater than 35% but less than or equal to 40% | LIBOR | $100 Million and $200 Million Term Loans | ||||||
Line Of Credit Facility Leverage Range [Line Items] | ||||||
Basis spread on variable rate | 1.45% | |||||
Greater than 40% but less than or equal to 45% | LIBOR | $100 Million and $200 Million Term Loans | ||||||
Line Of Credit Facility Leverage Range [Line Items] | ||||||
Basis spread on variable rate | 1.50% | |||||
Greater than 45% but less than or equal to 50% | LIBOR | $100 Million and $200 Million Term Loans | ||||||
Line Of Credit Facility Leverage Range [Line Items] | ||||||
Basis spread on variable rate | 1.65% | |||||
Greater than 50% but less than or equal to 55% | LIBOR | $100 Million and $200 Million Term Loans | ||||||
Line Of Credit Facility Leverage Range [Line Items] | ||||||
Basis spread on variable rate | 1.85% | |||||
Greater than 55% | LIBOR | $100 Million and $200 Million Term Loans | ||||||
Line Of Credit Facility Leverage Range [Line Items] | ||||||
Basis spread on variable rate | 2.00% | |||||
Line Of Credit Facility Covenant Actual Results | ||||||
Line Of Credit Facility Leverage Range [Line Items] | ||||||
Maximum leverage ratio | 0.285 | |||||
Unsecured term loan | ||||||
Line Of Credit Facility Leverage Range [Line Items] | ||||||
Debt instrument, term (in years) | 5 years | |||||
Accordion feature, higher borrowing capacity | $ 1,200,000,000 | |||||
Unsecured term loan | Unsecured Term Loan Due July 2024 | ||||||
Line Of Credit Facility Leverage Range [Line Items] | ||||||
Debt instrument, term (in years) | 5 years | |||||
Outstanding principal balance | $ 350,000,000 | 0 | ||||
Unsecured term loan | Unsecured Term Loan Due April 2022 | ||||||
Line Of Credit Facility Leverage Range [Line Items] | ||||||
Number of term loans | loan | 2 | |||||
Outstanding principal balance | $ 0 | 200,000,000 | ||||
Unsecured term loan | Unsecured Term Loan Due October 2023 | ||||||
Line Of Credit Facility Leverage Range [Line Items] | ||||||
Outstanding principal balance | $ 50,000,000 | 50,000,000 | $ 50,000,000 | |||
Unsecured term loan | Unsecured Term Loan, $175 million | ||||||
Line Of Credit Facility Leverage Range [Line Items] | ||||||
Outstanding principal balance | $ 175,000,000 | |||||
Unsecured term loan | LIBOR | ||||||
Line Of Credit Facility Leverage Range [Line Items] | ||||||
Basis spread on variable rate | 1.35% | |||||
Interest incurred on the facility | $ 13,700,000 | $ 10,600,000 | $ 6,200,000 | |||
Unsecured term loan | LIBOR | Unsecured Term Loan Due July 2024 | ||||||
Line Of Credit Facility Leverage Range [Line Items] | ||||||
Basis spread on variable rate | 1.40% | |||||
Unsecured term loan | LIBOR | Unsecured Term Loan Due April 2022 | ||||||
Line Of Credit Facility Leverage Range [Line Items] | ||||||
Basis spread on variable rate | 1.45% | |||||
Unsecured term loan | LIBOR | Unsecured Term Loan Due October 2023 | ||||||
Line Of Credit Facility Leverage Range [Line Items] | ||||||
Basis spread on variable rate | 1.40% | |||||
Unsecured term loan | Minimum | Greater than 30% but less than or equal to 35% | ||||||
Line Of Credit Facility Leverage Range [Line Items] | ||||||
Leverage Ratio | 0.30 | |||||
Unsecured term loan | Minimum | Greater than 35% but less than or equal to 40% | ||||||
Line Of Credit Facility Leverage Range [Line Items] | ||||||
Leverage Ratio | 0.35 | |||||
Unsecured term loan | Minimum | Greater than 40% but less than or equal to 45% | ||||||
Line Of Credit Facility Leverage Range [Line Items] | ||||||
Leverage Ratio | 0.4 | |||||
Unsecured term loan | Minimum | Greater than 45% but less than or equal to 50% | ||||||
Line Of Credit Facility Leverage Range [Line Items] | ||||||
Leverage Ratio | 0.45 | |||||
Unsecured term loan | Minimum | Greater than 50% but less than or equal to 55% | ||||||
Line Of Credit Facility Leverage Range [Line Items] | ||||||
Leverage Ratio | 0.5 | |||||
Unsecured term loan | Minimum | Greater than 55% | ||||||
Line Of Credit Facility Leverage Range [Line Items] | ||||||
Leverage Ratio | 0.55 | |||||
Unsecured term loan | Maximum | Less than or equal to 30% | ||||||
Line Of Credit Facility Leverage Range [Line Items] | ||||||
Leverage Ratio | 0.30 | |||||
Unsecured term loan | Maximum | Greater than 30% but less than or equal to 35% | ||||||
Line Of Credit Facility Leverage Range [Line Items] | ||||||
Leverage Ratio | 0.35 | |||||
Unsecured term loan | Maximum | Greater than 35% but less than or equal to 40% | ||||||
Line Of Credit Facility Leverage Range [Line Items] | ||||||
Leverage Ratio | 0.4 | |||||
Unsecured term loan | Maximum | Greater than 40% but less than or equal to 45% | ||||||
Line Of Credit Facility Leverage Range [Line Items] | ||||||
Leverage Ratio | 0.45 | |||||
Unsecured term loan | Maximum | Greater than 45% but less than or equal to 50% | ||||||
Line Of Credit Facility Leverage Range [Line Items] | ||||||
Leverage Ratio | 0.5 | |||||
Unsecured term loan | Maximum | Greater than 50% but less than or equal to 55% | ||||||
Line Of Credit Facility Leverage Range [Line Items] | ||||||
Leverage Ratio | 0.55 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ in Thousands | Dec. 12, 2018USD ($)room | Mar. 01, 2018USD ($)room | Dec. 31, 2019USD ($)acquisition | Jul. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Business Acquisition [Line Items] | |||||
Number of acquisitions | acquisition | 0 | ||||
Outstanding principal balance | $ 1,019,569 | ||||
Unfavorable off-market lease | (67,422) | $ (73,151) | |||
Landing Resort & Spa | |||||
Business Acquisition [Line Items] | |||||
Number of rooms acquired (in rooms) | room | 77 | ||||
Purchase price | $ 42,000 | ||||
Favorable lease asset | $ 0 | ||||
Hotel Palomar Phoenix | |||||
Business Acquisition [Line Items] | |||||
Number of rooms acquired (in rooms) | room | 242 | ||||
Purchase price | $ 80,000 | ||||
Outstanding principal balance | 2,900 | ||||
Favorable lease asset | $ 20,000 | ||||
Percentage of lease payments | 50.00% | ||||
Unfavorable off-market lease | $ (4,600) | ||||
Favorable lease asset | $ 20,012 | ||||
Cavallo Point | |||||
Business Acquisition [Line Items] | |||||
Number of rooms acquired (in rooms) | room | 142 | ||||
Purchase price | $ 152,000 | ||||
Favorable lease asset | $ 17,907 | ||||
Unsecured term loan | Unsecured Term Loan Due October 2023 | |||||
Business Acquisition [Line Items] | |||||
Outstanding principal balance | $ 50,000 | $ 50,000 | $ 50,000 |
Acquisitions - Allocation of Fa
Acquisitions - Allocation of Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 12, 2018 | Mar. 01, 2018 |
Schedule of Acquired Assets and Liabilities | ||||
New Market Tax Credit loan assumption | $ (1,090,099) | $ (977,966) | ||
Cavallo Point | ||||
Schedule of Acquired Assets and Liabilities | ||||
Land | $ 0 | |||
Building and improvements | 123,100 | |||
Furniture, fixtures and equipment | 10,470 | |||
Construction in progress | 1,734 | |||
Total fixed assets | 135,304 | |||
Favorable lease asset | 17,907 | |||
Unfavorable lease liability | 0 | |||
New Market Tax Credit loan assumption | 0 | |||
Other assets and liabilities, net | (5,083) | |||
Total | $ 148,128 | |||
Landing Resort & Spa | ||||
Schedule of Acquired Assets and Liabilities | ||||
Land | $ 14,816 | |||
Building and improvements | 24,351 | |||
Furniture, fixtures and equipment | 3,346 | |||
Construction in progress | 0 | |||
Total fixed assets | 42,513 | |||
Favorable lease asset | 0 | |||
Unfavorable lease liability | 0 | |||
New Market Tax Credit loan assumption | 0 | |||
Other assets and liabilities, net | (658) | |||
Total | 41,855 | |||
Hotel Palomar Phoenix | ||||
Schedule of Acquired Assets and Liabilities | ||||
Land | 0 | |||
Building and improvements | 59,703 | |||
Furniture, fixtures and equipment | 5,207 | |||
Construction in progress | 0 | |||
Total fixed assets | 64,910 | |||
Favorable lease asset | 20,012 | |||
Unfavorable lease liability | (4,644) | |||
New Market Tax Credit loan assumption | (2,943) | |||
Other assets and liabilities, net | 497 | |||
Total | $ 77,832 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit), Continuing Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current Income Tax Expense (Benefit) | |||
Federal | $ 420 | $ 66 | $ 622 |
State | 541 | 984 | 1,221 |
Foreign | 49 | 460 | 662 |
Current Income Tax Expense (Benefit) | 1,010 | 1,510 | 2,505 |
Deferred Income Tax Expense (Benefit) | |||
Federal | 80 | 1,857 | 6,432 |
State | 132 | 178 | 425 |
Foreign | 20,806 | (444) | 845 |
Deferred Income Tax Expense (Benefit) | 21,018 | 1,591 | 7,702 |
Income tax provision | $ 22,028 | $ 3,101 | $ 10,207 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the Statutory Federal Tax Provision to Income Tax (Benefit) Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Statutory federal tax provision | $ 43,313 | $ 19,089 | $ 35,729 |
Tax impact of REIT election | (14,125) | (14,439) | (22,277) |
State income tax provision, net of federal tax benefit | 532 | 705 | 1,652 |
Foreign income tax benefit | (6,998) | (2,927) | (430) |
Tax reform impact on U.S. taxes | 0 | 0 | (2,143) |
Tax reform impact on foreign taxes | 0 | 0 | (2,076) |
Other | (694) | 673 | (248) |
Income tax provision | $ 22,028 | $ 3,101 | $ 10,207 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Contingency [Line Items] | ||||
Tax Cuts and Jobs Act of 2017, decrease to deferred income tax provisions | $ 4,200 | |||
Tax Cuts and Jobs Act of 2017, transition tax obligation | 17,800 | |||
Tax Cuts and Jobs Act of 2017, increase in taxable income | 1,500 | |||
Franchise tax expense | $ 300 | $ 300 | $ 200 | |
Frenchman's Reef & Morning Star Beach Resort | ||||
Income Tax Contingency [Line Items] | ||||
New adjusted tax rate after the reduction (as a percent) | 4.40% | |||
State | ||||
Income Tax Contingency [Line Items] | ||||
Net operating loss carryforwards | $ 2,572 | 2,975 | ||
Valuation allowance | $ 700 | $ 700 | ||
Scenario, Forecast | Frenchman's Reef & Morning Star Beach Resort | ||||
Income Tax Contingency [Line Items] | ||||
New adjusted tax rate after the reduction (as a percent) | 2.30% |
Income Taxes - Total Deferred T
Income Taxes - Total Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 0 | $ 1,983 |
Deferred income related to key money | 2,382 | 2,465 |
Alternative minimum tax credit carryforwards | 0 | 103 |
Other | 529 | 326 |
Depreciation and amortization | (7,928) | (9,188) |
Deferred tax liabilities, net | (5,017) | (4,311) |
State | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 2,572 | 2,975 |
Deferred income related to key money | 735 | 780 |
Alternative minimum tax credit carryforwards | 80 | 80 |
Other | 167 | 103 |
Depreciation and amortization | (2,446) | (2,906) |
Less: Valuation allowance | (700) | (700) |
Deferred tax assets, net | 408 | 332 |
Foreign (USVI) | ||
Operating Loss Carryforwards [Line Items] | ||
Deferred income related to key money | 0 | 0 |
Other | 0 | 0 |
Depreciation and amortization | (21,060) | (255) |
Deferred tax liabilities, net | (23,677) | (2,872) |
Land basis recorded in purchase accounting | $ (2,617) | $ (2,617) |
Relationships with Managers a_3
Relationships with Managers and Franchisors - Schedule of Management Fees (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Capitalized Contract Cost [Line Items] | |||
Base management fees | $ 21,712 | $ 20,467 | $ 22,265 |
Incentive management fees | 5,705 | 5,805 | 6,259 |
Amortization of deferred income related to key money | (227) | (2,398) | (4,840) |
Amortization of unfavorable contract liabilities | (1,715) | (1,715) | (1,715) |
Management fees | |||
Capitalized Contract Cost [Line Items] | |||
Total | $ 25,475 | $ 22,159 | $ 21,969 |
Relationships with Managers a_4
Relationships with Managers and Franchisors - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)hotel | Dec. 31, 2018USD ($)hotel | Dec. 31, 2017USD ($)hotel | Dec. 31, 2015USD ($) | |
Real Estate Properties [Line Items] | |||||
Number of hotels that earned incentive management fees | hotel | 8 | 9 | 10 | ||
Amortization | $ 396 | $ 2,568 | $ 5,760 | ||
Number of franchised hotels | hotel | 14 | ||||
Key Money | |||||
Real Estate Properties [Line Items] | |||||
Amortization | $ 400 | $ 2,600 | 5,800 | ||
Key Money | Courtyard Manhattan / Midtown East mortgage loan | |||||
Real Estate Properties [Line Items] | |||||
Amortization | 1,900 | ||||
Key Money | Frenchman's Reef & Morning Star Beach Resort | |||||
Real Estate Properties [Line Items] | |||||
Amortization | $ 2,200 | $ 2,600 | |||
Key Money | The Gwen Chicago | |||||
Real Estate Properties [Line Items] | |||||
Amortization | $ 3,000 |
Relationships with Managers a_5
Relationships with Managers and Franchisors - Franchise Fees (Details) - Franchise fees - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Capitalized Contract Cost [Line Items] | |||
Franchise fees | $ 27,102 | $ 26,348 | $ 24,890 |
Amortization of deferred income related to key money | (170) | (170) | (920) |
Total | $ 26,932 | $ 26,178 | $ 23,970 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2019USD ($)ft²hotelroomrenewal_termground_lease | Jul. 31, 2018USD ($) | Dec. 31, 2019USD ($)ft²hotelroomrenewal_termground_lease | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | ||
Real Estate Properties [Line Items] | ||||||
Proceeds from insurance settlement, property and business interruption | $ | $ 246,800,000 | $ 142,500,000 | $ 85,000,000 | $ 10,000,000 | ||
Loss contingency accrual | $ | 0 | |||||
Restricted cash | $ | [1] | $ 57,268,000 | $ 57,268,000 | $ 47,735,000 | $ 40,204,000 | |
Number of properties subject to ground leases | hotel | 7 | 7 | ||||
Frenchman's Reef | ||||||
Real Estate Properties [Line Items] | ||||||
Proceeds from insurance settlement, property and business interruption | $ | $ 238,500,000 | |||||
Havana Cabana Key West | ||||||
Real Estate Properties [Line Items] | ||||||
Proceeds from insurance settlement, property and business interruption | $ | $ 8,300,000 | |||||
Bethesda Marriott Suites | ||||||
Real Estate Properties [Line Items] | ||||||
Number of renewal periods (in ones) | 0 | 0 | ||||
Courtyard Manhattan/Fifth Avenue | ||||||
Real Estate Properties [Line Items] | ||||||
Number of renewal periods (in ones) | 1 | 1 | ||||
Ground leases renewal option (in years) | 49 years | |||||
Salt Lake City Marriott Downtown mortgage loan | ||||||
Real Estate Properties [Line Items] | ||||||
Number of properties subject to ground leases | ground_lease | 2 | 2 | ||||
Interest in land under hotel (as a percent of ownership) | 21.00% | |||||
Boston Westin mortgage loan | ||||||
Real Estate Properties [Line Items] | ||||||
Number of renewal periods (in ones) | 0 | 0 | ||||
Cavallo Point | ||||||
Real Estate Properties [Line Items] | ||||||
Number of renewal periods (in ones) | 0 | 0 | ||||
Renaissance Worthington mortgage loan | ||||||
Real Estate Properties [Line Items] | ||||||
Number of properties subject to ground leases | ground_lease | 3 | 3 | ||||
Number of renewal periods (in ones) | 3 | 3 | ||||
Ground leases renewal option (in years) | 15 years | |||||
Percentage of land on which the parking garage is constructed | 25.00% | 25.00% | ||||
JW Marriott Denver at Cherry Creek | ||||||
Real Estate Properties [Line Items] | ||||||
Number of renewal periods (in ones) | 2 | 2 | ||||
Ground leases renewal option (in years) | 5 years | |||||
Area of real estate property (in square feet) | ft² | 5,500 | 5,500 | ||||
Incremental renewal option (in years) | 1 year | |||||
First Set of Renewal Options | Shorebreak Hotel | ||||||
Real Estate Properties [Line Items] | ||||||
Number of renewal periods (in ones) | 2 | 2 | ||||
Ground leases renewal option (in years) | 25 years | |||||
First Set of Renewal Options | Hotel Palomar Phoenix | ||||||
Real Estate Properties [Line Items] | ||||||
Number of renewal periods (in ones) | 3 | 3 | ||||
Ground leases renewal option (in years) | 5 years | |||||
Second Set of Renewal Options | Shorebreak Hotel | ||||||
Real Estate Properties [Line Items] | ||||||
Number of renewal periods (in ones) | 1 | 1 | ||||
Ground leases renewal option (in years) | 24 years | |||||
Orchards Inn Sedona | ||||||
Real Estate Properties [Line Items] | ||||||
Number of rooms | room | 28 | |||||
Number of rooms acquired (in rooms) | room | 70 | 70 | ||||
Long-Term Ground Lease | Shorebreak Hotel | ||||||
Real Estate Properties [Line Items] | ||||||
Ownership of undivided interest (as a percent of ownership) | 95.50% | 95.50% | ||||
Land Underlying the Hotel and Lease | Shorebreak Hotel | ||||||
Real Estate Properties [Line Items] | ||||||
Interest in land under hotel (as a percent of ownership) | 4.50% | |||||
[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. |
Commitments and Contingencies_2
Commitments and Contingencies - Ground Leases Annual Rent (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2031 | Jan. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2018 | |
Bethesda Marriott Suites | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual increase in rent | 5.50% | ||||
Courtyard Manhattan/Fifth Avenue | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Ground leases renewal option (in years) | 49 years | ||||
Courtyard Manhattan/Fifth Avenue | Maximum | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent (as a percentage of gross revenue) | 5.00% | ||||
Salt Lake City Marriott Downtown | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Ownership percentage of hotel land | 21.00% | ||||
Annual rent reimbursed by hotel | 21.00% | ||||
Boston Westin mortgage loan | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Term | 30 years | ||||
Boston Westin mortgage loan | Maximum | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent (as a percentage of gross revenue) | 2.50% | ||||
JW Marriott Denver at Cherry Creek | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Ground leases renewal option (in years) | 5 years | ||||
Hotel Palomar Phoenix | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual increase in rent | 2.50% | ||||
Cavallo Point | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Percentage rent | $ 30,000,000 | ||||
Participation rent | $ 42,000,000 | $ 40,000,000 | |||
Renaissance Worthington mortgage loan | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Ground leases renewal option (in years) | 15 years | ||||
Through 4/2087 | Bethesda Marriott Suites | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | $ 824,341 | ||||
10/2007 - 9/2017 | Courtyard Manhattan/Fifth Avenue | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | 906,000 | ||||
10/2017 - 9/2027 | Courtyard Manhattan/Fifth Avenue | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | 1,132,812 | ||||
10/2027 - 9/2037 | Courtyard Manhattan/Fifth Avenue | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | 1,416,015 | ||||
10/2037 - 9/2047 | Courtyard Manhattan/Fifth Avenue | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | 1,770,019 | ||||
10/2047 - 9/2057 | Courtyard Manhattan/Fifth Avenue | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | 2,212,524 | ||||
10/2057 - 9/2067 | Courtyard Manhattan/Fifth Avenue | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | 2,765,655 | ||||
10/2067 - 9/2077 | Courtyard Manhattan/Fifth Avenue | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | 3,457,069 | ||||
10/2077 - 9/2085 | Courtyard Manhattan/Fifth Avenue | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | 4,321,336 | ||||
Through 12/2056 | Salt Lake City Marriott Downtown | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | $ 132,000 | ||||
Annual rent expense (as a percentage of gross room sales) | 2.60% | ||||
1/2013 - 12/2016 | Salt Lake City Marriott Downtown | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | $ 11,305 | ||||
1/2017 - 12/2017 | Salt Lake City Marriott Downtown | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | 13,000 | ||||
1/2018 - 12/2056 | Salt Lake City Marriott Downtown | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | 13,500 | ||||
1/2016 - 12/2020 | Boston Westin mortgage loan | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | 750,000 | ||||
1/2021 - 12/2025 | Boston Westin mortgage loan | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | 1,000,000 | ||||
1/2021 - 12/2025 | JW Marriott Denver at Cherry Creek | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | 55,000 | ||||
1/2026 - 12/2030 | Boston Westin mortgage loan | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | 1,500,000 | ||||
1/2026 - 12/2030 | JW Marriott Denver at Cherry Creek | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | 60,000 | ||||
1/2031 - 12/2035 | Boston Westin mortgage loan | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | 1,750,000 | ||||
1/2036 - 5/2099 | Boston Westin mortgage loan | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | $ 0 | ||||
Through 5/2015 | Boston Westin mortgage loan | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent (as a percentage of gross revenue) | 0.00% | ||||
6/2016 - 5/2026 | Boston Westin mortgage loan | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent (as a percentage of gross revenue) | 1.00% | ||||
6/2026 - 5/2036 | Boston Westin mortgage loan | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent (as a percentage of gross revenue) | 1.50% | ||||
6/2036 - 5/2046 | Boston Westin mortgage loan | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent (as a percentage of gross revenue) | 2.75% | ||||
6/2046 - 5/2056 | Boston Westin mortgage loan | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent (as a percentage of gross revenue) | 3.00% | ||||
6/2056 - 5/2066 | Boston Westin mortgage loan | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent (as a percentage of gross revenue) | 3.25% | ||||
6/2066 - 5/2099 | Boston Westin mortgage loan | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent (as a percentage of gross revenue) | 3.50% | ||||
1/2016 - 12/2020 | JW Marriott Denver at Cherry Creek | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | $ 50,000 | ||||
Through 4/2016 | Shorebreak Hotel | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | 115,542 | ||||
5/2016 - 4/2021 | Shorebreak Hotel | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | 126,649 | ||||
Through 6/2018 | Orchards Inn Sedona | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | 117,780 | ||||
7/2018 - 12/2070 | Orchards Inn Sedona | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | 123,499 | ||||
Through 3/2020 | Hotel Palomar Phoenix | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | 16,875 | ||||
4/2020 - 3/2021 | Hotel Palomar Phoenix | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | 33,750 | ||||
4/2021 - 3/2085 | Hotel Palomar Phoenix | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | 34,594 | ||||
1/2022 - 12/2023 | Hotel Palomar Phoenix | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | 390,000 | ||||
1/2024 - 12/2033 | Hotel Palomar Phoenix | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | 312,000 | ||||
1/2034 - 12/2043 | Hotel Palomar Phoenix | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | 234,000 | ||||
1/2044 - 12/2053 | Hotel Palomar Phoenix | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | 156,000 | ||||
1/2054 - 12/2063 | Hotel Palomar Phoenix | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | 78,000 | ||||
1/2064 - 3/2085 | Hotel Palomar Phoenix | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | 0 | ||||
1/2019 - 12/2066 | Cavallo Point | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | 67,034 | ||||
Rent increase (in years) | 5 years | ||||
Average adjusted gross revenues, period | 3 years | ||||
Adjusted gross revenues, multiplying percentage | 75.00% | ||||
Through 12/2018 | Cavallo Point | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | $ 1 | ||||
Annual rent (as a percentage of gross revenue) | 1.00% | ||||
1/2019 - 12/2023 | Cavallo Point | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent (as a percentage of gross revenue) | 2.00% | ||||
1/2024 - 12/2028 | Cavallo Point | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent (as a percentage of gross revenue) | 3.00% | ||||
1/2029 - 12/2033 | Cavallo Point | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent (as a percentage of gross revenue) | 4.00% | ||||
1/2034 - 12/2066 | Cavallo Point | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent (as a percentage of gross revenue) | 5.00% | ||||
Through 12/2066 | Cavallo Point | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent (as a percentage of gross revenue) | 10.00% | ||||
8/2013 - 7/2022 | Renaissance Worthington mortgage loan | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | $ 40,400 | ||||
8/2022 - 7/2037 | Renaissance Worthington mortgage loan | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | 46,081 | ||||
8/2037 - 7/2052 | Renaissance Worthington mortgage loan | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | 51,763 | ||||
8/2052 - 7/2067 | Renaissance Worthington mortgage loan | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual rent | $ 57,444 | ||||
Scenario, Forecast | JW Marriott Denver at Cherry Creek | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Annual increase in rent | 3.00% | ||||
Rent increase (in years) | 1 year | ||||
Scenario, Forecast | Cavallo Point | |||||
Schedule of Ground Leased Assets [Line Items] | |||||
Participation rent | $ 42,000,000 |
Fair Value Measurements and I_3
Fair Value Measurements and Interest Rate Swaps - Fair Value of Certain Financial Assets and Liabilities and Other Financial Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying value | $ 1,090,099 | $ 977,966 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value | 1,110,353 | 960,447 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying value | 1,090,099 | 977,966 |
Interest Rate Swap | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swap liabilities | 2,545 | 0 |
Interest Rate Swap | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swap liabilities | $ 2,545 | $ 0 |
Fair Value Measurements and I_4
Fair Value Measurements and Interest Rate Swaps - Interest Rate Swap (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Unsecured Term Loan Due October 2023 | Unsecured term loan | ||
Derivative [Line Items] | ||
Principal balance | $ 50,000,000 | |
Unsecured Term Loan Due July 2024 | Unsecured term loan | ||
Derivative [Line Items] | ||
Principal balance | 350,000,000 | |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Fair Value of Assets (Liabilities) | $ (2,545,000) | $ 0 |
Interest Rate Swap | Unsecured Term Loan Due October 2023 | ||
Derivative [Line Items] | ||
Rate Fixed | 2.41% | |
Notional Amount | $ 50,000 | |
Fair Value of Assets (Liabilities) | $ (1,597,000) | 0 |
Interest Rate Swap | Unsecured Term Loan Due July 2024 | ||
Derivative [Line Items] | ||
Rate Fixed | 1.70% | |
Notional Amount | $ 175,000 | |
Fair Value of Assets (Liabilities) | $ (948,000) | $ 0 |
Quarterly Operating Results (_3
Quarterly Operating Results (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Data [Abstract] | |||||||||||
Total revenue | $ 237,519 | $ 240,279 | $ 257,918 | $ 202,375 | $ 223,407 | $ 220,818 | $ 237,949 | $ 181,530 | $ 938,091 | $ 863,704 | $ 870,005 |
Total operating expenses | 75,214 | 211,033 | 211,960 | 185,885 | 189,031 | 176,589 | 200,012 | 168,011 | 684,092 | 733,643 | 730,222 |
Operating income | 162,305 | 29,246 | 45,958 | 16,490 | 34,376 | 44,229 | 37,937 | 13,519 | |||
Net income | 134,583 | 11,574 | 29,074 | 8,980 | 24,006 | 31,443 | 28,009 | 4,338 | 184,211 | 87,796 | 91,877 |
Net income attributable to common stockholders | $ 134,053 | $ 11,529 | $ 28,960 | $ 8,945 | $ 23,994 | $ 31,443 | $ 28,009 | $ 4,338 | $ 183,487 | $ 87,784 | $ 91,877 |
Net income per share available to common stockholders - basic (in dollars per share) | $ 0.67 | $ 0.06 | $ 0.14 | $ 0.04 | $ 0.12 | $ 0.15 | $ 0.14 | $ 0.02 | $ 0.91 | $ 0.43 | $ 0.46 |
Net income per share available to common stockholders - diluted (in dollars per share) | $ 0.66 | $ 0.06 | $ 0.14 | $ 0.04 | $ 0.12 | $ 0.15 | $ 0.14 | $ 0.02 | $ 0.90 | $ 0.43 | $ 0.46 |
Schedule III - Real Estate an_2
Schedule III - Real Estate and Accumulated Depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ (619,569) | |||
Initial Cost - Land | 616,840 | |||
Initial Cost - Buildings and Improvements | 2,377,317 | |||
Costs Capitalized Subsequent to Acquisition | 383,119 | |||
Gross Amount at End of Year - Land | 617,695 | |||
Gross Amount at End of Year - Buildings and Improvements | 2,759,584 | |||
Gross Amount at End of Year - Total | $ 3,377,279 | $ 3,308,009 | $ 3,025,089 | 3,377,279 |
Accumulated Depreciation | (556,868) | (556,868) | (492,871) | (625,411) |
Net Book Value | 2,751,868 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward] | ||||
Balance at beginning of period | 3,308,009 | 3,025,089 | 2,917,634 | |
Acquisitions | ||||
Acquisitions | 0 | 221,970 | 81,494 | |
Capital expenditures | 69,270 | 60,950 | 68,573 | |
Deductions: | ||||
Dispositions and other | 0 | 0 | (42,612) | |
Balance at end of period | 3,377,279 | 3,308,009 | 3,025,089 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | ||||
Balance at beginning of period | 556,868 | 492,871 | 441,952 | |
Depreciation and amortization | 68,543 | 63,997 | 60,023 | |
Dispositions and other | 0 | 0 | (9,104) | |
Balance at end of period | 625,411 | $ 556,868 | $ 492,871 | |
Aggregate cost of properties for Federal income tax purposes | 3,278,942 | |||
Atlanta Alpharetta Marriott | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 0 | |||
Initial Cost - Land | 3,623 | |||
Initial Cost - Buildings and Improvements | 33,503 | |||
Costs Capitalized Subsequent to Acquisition | 2,959 | |||
Gross Amount at End of Year - Land | 3,623 | |||
Gross Amount at End of Year - Buildings and Improvements | 36,463 | |||
Gross Amount at End of Year - Total | 40,086 | 40,086 | ||
Accumulated Depreciation | $ (12,626) | (12,626) | ||
Net Book Value | 27,460 | |||
Depreciation Life (in years) | 40 years | |||
Deductions: | ||||
Balance at end of period | $ 40,086 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | ||||
Balance at end of period | 12,626 | |||
Bethesda Marriott Suites | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 0 | |||
Initial Cost - Land | 0 | |||
Initial Cost - Buildings and Improvements | 45,656 | |||
Costs Capitalized Subsequent to Acquisition | 5,362 | |||
Gross Amount at End of Year - Land | 0 | |||
Gross Amount at End of Year - Buildings and Improvements | 51,018 | |||
Gross Amount at End of Year - Total | 51,018 | 51,018 | ||
Accumulated Depreciation | $ (18,026) | (18,026) | ||
Net Book Value | 32,992 | |||
Depreciation Life (in years) | 40 years | |||
Deductions: | ||||
Balance at end of period | $ 51,018 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | ||||
Balance at end of period | 18,026 | |||
Westin Boston Waterfront Hotel | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | (190,725) | |||
Initial Cost - Land | 0 | |||
Initial Cost - Buildings and Improvements | 273,696 | |||
Costs Capitalized Subsequent to Acquisition | 34,228 | |||
Gross Amount at End of Year - Land | 0 | |||
Gross Amount at End of Year - Buildings and Improvements | 307,924 | |||
Gross Amount at End of Year - Total | 307,924 | 307,924 | ||
Accumulated Depreciation | $ (95,988) | (95,988) | ||
Net Book Value | 211,936 | |||
Depreciation Life (in years) | 40 years | |||
Deductions: | ||||
Balance at end of period | $ 307,924 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | ||||
Balance at end of period | 95,988 | |||
Cavallo Point | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 0 | |||
Initial Cost - Land | 0 | |||
Initial Cost - Buildings and Improvements | 123,100 | |||
Costs Capitalized Subsequent to Acquisition | 2,613 | |||
Gross Amount at End of Year - Land | 0 | |||
Gross Amount at End of Year - Buildings and Improvements | 125,713 | |||
Gross Amount at End of Year - Total | 125,713 | 125,713 | ||
Accumulated Depreciation | $ (3,084) | (3,084) | ||
Net Book Value | 122,629 | |||
Depreciation Life (in years) | 40 years | |||
Deductions: | ||||
Balance at end of period | $ 125,713 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | ||||
Balance at end of period | 3,084 | |||
Chicago Marriott Downtown | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 0 | |||
Initial Cost - Land | 36,900 | |||
Initial Cost - Buildings and Improvements | 347,921 | |||
Costs Capitalized Subsequent to Acquisition | 97,018 | |||
Gross Amount at End of Year - Land | 36,900 | |||
Gross Amount at End of Year - Buildings and Improvements | 444,939 | |||
Gross Amount at End of Year - Total | 481,839 | 481,839 | ||
Accumulated Depreciation | $ (132,454) | (132,454) | ||
Net Book Value | 349,385 | |||
Depreciation Life (in years) | 40 years | |||
Deductions: | ||||
Balance at end of period | $ 481,839 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | ||||
Balance at end of period | 132,454 | |||
The Gwen Chicago | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 0 | |||
Initial Cost - Land | 31,650 | |||
Initial Cost - Buildings and Improvements | 76,961 | |||
Costs Capitalized Subsequent to Acquisition | 22,774 | |||
Gross Amount at End of Year - Land | 31,650 | |||
Gross Amount at End of Year - Buildings and Improvements | 99,735 | |||
Gross Amount at End of Year - Total | 131,385 | 131,385 | ||
Accumulated Depreciation | $ (27,568) | (27,568) | ||
Net Book Value | 103,817 | |||
Depreciation Life (in years) | 40 years | |||
Deductions: | ||||
Balance at end of period | $ 131,385 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | ||||
Balance at end of period | 27,568 | |||
Courtyard Denver | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 0 | |||
Initial Cost - Land | 9,400 | |||
Initial Cost - Buildings and Improvements | 36,180 | |||
Costs Capitalized Subsequent to Acquisition | 4,284 | |||
Gross Amount at End of Year - Land | 9,400 | |||
Gross Amount at End of Year - Buildings and Improvements | 40,464 | |||
Gross Amount at End of Year - Total | 49,864 | 49,864 | ||
Accumulated Depreciation | $ (8,009) | (8,009) | ||
Net Book Value | 41,855 | |||
Depreciation Life (in years) | 40 years | |||
Deductions: | ||||
Balance at end of period | $ 49,864 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | ||||
Balance at end of period | 8,009 | |||
Courtyard Manhattan/Fifth Avenue | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 0 | |||
Initial Cost - Land | 0 | |||
Initial Cost - Buildings and Improvements | 34,685 | |||
Costs Capitalized Subsequent to Acquisition | 4,925 | |||
Gross Amount at End of Year - Land | 0 | |||
Gross Amount at End of Year - Buildings and Improvements | 39,610 | |||
Gross Amount at End of Year - Total | 39,610 | 39,610 | ||
Accumulated Depreciation | $ (14,435) | (14,435) | ||
Net Book Value | 25,175 | |||
Depreciation Life (in years) | 40 years | |||
Deductions: | ||||
Balance at end of period | $ 39,610 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | ||||
Balance at end of period | 14,435 | |||
Courtyard Manhattan/Midtown East | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | (81,107) | |||
Initial Cost - Land | 16,500 | |||
Initial Cost - Buildings and Improvements | 54,812 | |||
Costs Capitalized Subsequent to Acquisition | 5,905 | |||
Gross Amount at End of Year - Land | 16,500 | |||
Gross Amount at End of Year - Buildings and Improvements | 60,717 | |||
Gross Amount at End of Year - Total | 77,217 | 77,217 | ||
Accumulated Depreciation | $ (21,832) | (21,832) | ||
Net Book Value | 55,385 | |||
Depreciation Life (in years) | 40 years | |||
Deductions: | ||||
Balance at end of period | $ 77,217 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | ||||
Balance at end of period | 21,832 | |||
Frenchman's Reef & Morning Star Beach Resort | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 0 | |||
Initial Cost - Land | 17,713 | |||
Initial Cost - Buildings and Improvements | 50,697 | |||
Costs Capitalized Subsequent to Acquisition | 17,949 | |||
Gross Amount at End of Year - Land | 17,713 | |||
Gross Amount at End of Year - Buildings and Improvements | 68,646 | |||
Gross Amount at End of Year - Total | 86,359 | 86,359 | ||
Accumulated Depreciation | $ (15,230) | (15,230) | ||
Net Book Value | 71,129 | |||
Depreciation Life (in years) | 40 years | |||
Deductions: | ||||
Balance at end of period | $ 86,359 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | ||||
Balance at end of period | 15,230 | |||
Havana Cabana Key West | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 0 | |||
Initial Cost - Land | 32,888 | |||
Initial Cost - Buildings and Improvements | 13,371 | |||
Costs Capitalized Subsequent to Acquisition | 5,336 | |||
Gross Amount at End of Year - Land | 32,888 | |||
Gross Amount at End of Year - Buildings and Improvements | 18,707 | |||
Gross Amount at End of Year - Total | 51,595 | 51,595 | ||
Accumulated Depreciation | $ (2,041) | (2,041) | ||
Net Book Value | 49,554 | |||
Depreciation Life (in years) | 40 years | |||
Deductions: | ||||
Balance at end of period | $ 51,595 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | ||||
Balance at end of period | 2,041 | |||
Hilton Boston Downtown | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 0 | |||
Initial Cost - Land | 23,262 | |||
Initial Cost - Buildings and Improvements | 128,628 | |||
Costs Capitalized Subsequent to Acquisition | 13,348 | |||
Gross Amount at End of Year - Land | 23,262 | |||
Gross Amount at End of Year - Buildings and Improvements | 141,976 | |||
Gross Amount at End of Year - Total | 165,238 | 165,238 | ||
Accumulated Depreciation | $ (25,725) | (25,725) | ||
Net Book Value | 139,513 | |||
Depreciation Life (in years) | 40 years | |||
Deductions: | ||||
Balance at end of period | $ 165,238 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | ||||
Balance at end of period | 25,725 | |||
Hilton Burlington | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 0 | |||
Initial Cost - Land | 9,197 | |||
Initial Cost - Buildings and Improvements | 40,644 | |||
Costs Capitalized Subsequent to Acquisition | 2,303 | |||
Gross Amount at End of Year - Land | 9,197 | |||
Gross Amount at End of Year - Buildings and Improvements | 42,947 | |||
Gross Amount at End of Year - Total | 52,144 | 52,144 | ||
Accumulated Depreciation | $ (8,061) | (8,061) | ||
Net Book Value | 44,083 | |||
Depreciation Life (in years) | 40 years | |||
Deductions: | ||||
Balance at end of period | $ 52,144 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | ||||
Balance at end of period | 8,061 | |||
Hilton Garden Inn/New York Times Square Central | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 0 | |||
Initial Cost - Land | 60,300 | |||
Initial Cost - Buildings and Improvements | 88,896 | |||
Costs Capitalized Subsequent to Acquisition | 636 | |||
Gross Amount at End of Year - Land | 60,300 | |||
Gross Amount at End of Year - Buildings and Improvements | 89,533 | |||
Gross Amount at End of Year - Total | 149,833 | 149,833 | ||
Accumulated Depreciation | $ (11,969) | (11,969) | ||
Net Book Value | 137,864 | |||
Depreciation Life (in years) | 40 years | |||
Deductions: | ||||
Balance at end of period | $ 149,833 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | ||||
Balance at end of period | 11,969 | |||
Hotel Emblem | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 0 | |||
Initial Cost - Land | 7,856 | |||
Initial Cost - Buildings and Improvements | 21,085 | |||
Costs Capitalized Subsequent to Acquisition | 7,821 | |||
Gross Amount at End of Year - Land | 7,856 | |||
Gross Amount at End of Year - Buildings and Improvements | 28,906 | |||
Gross Amount at End of Year - Total | 36,762 | 36,762 | ||
Accumulated Depreciation | $ (3,946) | (3,946) | ||
Net Book Value | 32,816 | |||
Depreciation Life (in years) | 40 years | |||
Deductions: | ||||
Balance at end of period | $ 36,762 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | ||||
Balance at end of period | 3,946 | |||
Hotel Palomar Phoenix | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | (2,943) | |||
Initial Cost - Land | 0 | |||
Initial Cost - Buildings and Improvements | 59,703 | |||
Costs Capitalized Subsequent to Acquisition | (87) | |||
Gross Amount at End of Year - Land | 0 | |||
Gross Amount at End of Year - Buildings and Improvements | 59,616 | |||
Gross Amount at End of Year - Total | 59,616 | 59,616 | ||
Accumulated Depreciation | $ (2,781) | (2,781) | ||
Net Book Value | 56,835 | |||
Depreciation Life (in years) | 40 years | |||
Deductions: | ||||
Balance at end of period | $ 59,616 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | ||||
Balance at end of period | 2,781 | |||
JW Marriott Denver at Cherry Creek | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | (61,253) | |||
Initial Cost - Land | 9,200 | |||
Initial Cost - Buildings and Improvements | 63,183 | |||
Costs Capitalized Subsequent to Acquisition | 8,585 | |||
Gross Amount at End of Year - Land | 9,200 | |||
Gross Amount at End of Year - Buildings and Improvements | 71,768 | |||
Gross Amount at End of Year - Total | 80,968 | 80,968 | ||
Accumulated Depreciation | $ (13,996) | (13,996) | ||
Net Book Value | 66,972 | |||
Depreciation Life (in years) | 40 years | |||
Deductions: | ||||
Balance at end of period | $ 80,968 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | ||||
Balance at end of period | 13,996 | |||
The Landing at Lake Tahoe | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 0 | |||
Initial Cost - Land | 14,816 | |||
Initial Cost - Buildings and Improvements | 24,351 | |||
Costs Capitalized Subsequent to Acquisition | 810 | |||
Gross Amount at End of Year - Land | 14,816 | |||
Gross Amount at End of Year - Buildings and Improvements | 25,161 | |||
Gross Amount at End of Year - Total | 39,977 | 39,977 | ||
Accumulated Depreciation | $ (1,164) | (1,164) | ||
Net Book Value | 38,813 | |||
Depreciation Life (in years) | 40 years | |||
Deductions: | ||||
Balance at end of period | $ 39,977 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | ||||
Balance at end of period | 1,164 | |||
L'Auberge de Sedona | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 0 | |||
Initial Cost - Land | 39,384 | |||
Initial Cost - Buildings and Improvements | 22,204 | |||
Costs Capitalized Subsequent to Acquisition | 1,042 | |||
Gross Amount at End of Year - Land | 39,384 | |||
Gross Amount at End of Year - Buildings and Improvements | 23,246 | |||
Gross Amount at End of Year - Total | 62,630 | 62,630 | ||
Accumulated Depreciation | $ (2,468) | (2,468) | ||
Net Book Value | 60,162 | |||
Depreciation Life (in years) | 40 years | |||
Deductions: | ||||
Balance at end of period | $ 62,630 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | ||||
Balance at end of period | 2,468 | |||
Lexington Hotel New York | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 0 | |||
Initial Cost - Land | 92,000 | |||
Initial Cost - Buildings and Improvements | 229,368 | |||
Costs Capitalized Subsequent to Acquisition | 26,573 | |||
Gross Amount at End of Year - Land | 92,000 | |||
Gross Amount at End of Year - Buildings and Improvements | 255,941 | |||
Gross Amount at End of Year - Total | 347,941 | 347,941 | ||
Accumulated Depreciation | $ (52,236) | (52,236) | ||
Net Book Value | 295,705 | |||
Depreciation Life (in years) | 40 years | |||
Deductions: | ||||
Balance at end of period | $ 347,941 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | ||||
Balance at end of period | 52,236 | |||
Orchards Inn Sedona | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 0 | |||
Initial Cost - Land | 9,726 | |||
Initial Cost - Buildings and Improvements | 10,180 | |||
Costs Capitalized Subsequent to Acquisition | 115 | |||
Gross Amount at End of Year - Land | 9,726 | |||
Gross Amount at End of Year - Buildings and Improvements | 10,295 | |||
Gross Amount at End of Year - Total | 20,021 | 20,021 | ||
Accumulated Depreciation | $ (792) | (792) | ||
Net Book Value | 19,229 | |||
Depreciation Life (in years) | 40 years | |||
Deductions: | ||||
Balance at end of period | $ 20,021 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | ||||
Balance at end of period | 792 | |||
Renaissance Charleston Historic District | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 0 | |||
Initial Cost - Land | 5,900 | |||
Initial Cost - Buildings and Improvements | 32,511 | |||
Costs Capitalized Subsequent to Acquisition | 6,706 | |||
Gross Amount at End of Year - Land | 5,900 | |||
Gross Amount at End of Year - Buildings and Improvements | 39,218 | |||
Gross Amount at End of Year - Total | 45,118 | 45,118 | ||
Accumulated Depreciation | $ (8,139) | (8,139) | ||
Net Book Value | 36,979 | |||
Depreciation Life (in years) | 40 years | |||
Deductions: | ||||
Balance at end of period | $ 45,118 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | ||||
Balance at end of period | 8,139 | |||
Renaissance Worthington mortgage loan | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | (80,904) | |||
Initial Cost - Land | 15,500 | |||
Initial Cost - Buildings and Improvements | 63,428 | |||
Costs Capitalized Subsequent to Acquisition | 21,620 | |||
Gross Amount at End of Year - Land | 15,500 | |||
Gross Amount at End of Year - Buildings and Improvements | 85,048 | |||
Gross Amount at End of Year - Total | 100,548 | 100,548 | ||
Accumulated Depreciation | $ (25,203) | (25,203) | ||
Net Book Value | 75,345 | |||
Depreciation Life (in years) | 40 years | |||
Deductions: | ||||
Balance at end of period | $ 100,548 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | ||||
Balance at end of period | 25,203 | |||
Salt Lake City Marriott Downtown | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | (53,273) | |||
Initial Cost - Land | 0 | |||
Initial Cost - Buildings and Improvements | 45,815 | |||
Costs Capitalized Subsequent to Acquisition | 9,481 | |||
Gross Amount at End of Year - Land | 855 | |||
Gross Amount at End of Year - Buildings and Improvements | 54,441 | |||
Gross Amount at End of Year - Total | 55,296 | 55,296 | ||
Accumulated Depreciation | $ (18,310) | (18,310) | ||
Net Book Value | 36,986 | |||
Depreciation Life (in years) | 40 years | |||
Deductions: | ||||
Balance at end of period | $ 55,296 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | ||||
Balance at end of period | 18,310 | |||
Sheraton Suites Key West | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 0 | |||
Initial Cost - Land | 49,592 | |||
Initial Cost - Buildings and Improvements | 42,958 | |||
Costs Capitalized Subsequent to Acquisition | 9,646 | |||
Gross Amount at End of Year - Land | 49,592 | |||
Gross Amount at End of Year - Buildings and Improvements | 52,604 | |||
Gross Amount at End of Year - Total | 102,196 | 102,196 | ||
Accumulated Depreciation | $ (5,242) | (5,242) | ||
Net Book Value | 96,954 | |||
Depreciation Life (in years) | 40 years | |||
Deductions: | ||||
Balance at end of period | $ 102,196 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | ||||
Balance at end of period | 5,242 | |||
Shorebreak Hotel | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 0 | |||
Initial Cost - Land | 19,908 | |||
Initial Cost - Buildings and Improvements | 37,525 | |||
Costs Capitalized Subsequent to Acquisition | 3,599 | |||
Gross Amount at End of Year - Land | 19,908 | |||
Gross Amount at End of Year - Buildings and Improvements | 41,124 | |||
Gross Amount at End of Year - Total | 61,032 | 61,032 | ||
Accumulated Depreciation | $ (4,891) | (4,891) | ||
Net Book Value | 56,141 | |||
Depreciation Life (in years) | 40 years | |||
Deductions: | ||||
Balance at end of period | $ 61,032 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | ||||
Balance at end of period | 4,891 | |||
The Lodge at Sonoma, a Renaissance Resort & Spa mortgage loan | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | (26,963) | |||
Initial Cost - Land | 3,951 | |||
Initial Cost - Buildings and Improvements | 22,720 | |||
Costs Capitalized Subsequent to Acquisition | 8,816 | |||
Gross Amount at End of Year - Land | 3,951 | |||
Gross Amount at End of Year - Buildings and Improvements | 31,536 | |||
Gross Amount at End of Year - Total | 35,487 | 35,487 | ||
Accumulated Depreciation | $ (13,412) | (13,412) | ||
Net Book Value | 22,075 | |||
Depreciation Life (in years) | 40 years | |||
Deductions: | ||||
Balance at end of period | $ 35,487 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | ||||
Balance at end of period | 13,412 | |||
Vail Marriott Mountain Resort & Spa | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 0 | |||
Initial Cost - Land | 5,800 | |||
Initial Cost - Buildings and Improvements | 52,463 | |||
Costs Capitalized Subsequent to Acquisition | 25,767 | |||
Gross Amount at End of Year - Land | 5,800 | |||
Gross Amount at End of Year - Buildings and Improvements | 78,230 | |||
Gross Amount at End of Year - Total | 84,030 | 84,030 | ||
Accumulated Depreciation | $ (20,612) | (20,612) | ||
Net Book Value | 63,418 | |||
Depreciation Life (in years) | 40 years | |||
Deductions: | ||||
Balance at end of period | $ 84,030 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | ||||
Balance at end of period | 20,612 | |||
Westin Fort Lauderdale Beach Resort | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 0 | |||
Initial Cost - Land | 54,293 | |||
Initial Cost - Buildings and Improvements | 83,227 | |||
Costs Capitalized Subsequent to Acquisition | 10,662 | |||
Gross Amount at End of Year - Land | 54,293 | |||
Gross Amount at End of Year - Buildings and Improvements | 93,889 | |||
Gross Amount at End of Year - Total | 148,182 | 148,182 | ||
Accumulated Depreciation | $ (11,352) | (11,352) | ||
Net Book Value | 136,830 | |||
Depreciation Life (in years) | 40 years | |||
Deductions: | ||||
Balance at end of period | $ 148,182 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | ||||
Balance at end of period | 11,352 | |||
Westin San Diego | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | (61,851) | |||
Initial Cost - Land | 22,902 | |||
Initial Cost - Buildings and Improvements | 95,617 | |||
Costs Capitalized Subsequent to Acquisition | 9,279 | |||
Gross Amount at End of Year - Land | 22,902 | |||
Gross Amount at End of Year - Buildings and Improvements | 104,896 | |||
Gross Amount at End of Year - Total | 127,798 | 127,798 | ||
Accumulated Depreciation | $ (19,164) | (19,164) | ||
Net Book Value | 108,634 | |||
Depreciation Life (in years) | 40 years | |||
Deductions: | ||||
Balance at end of period | $ 127,798 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | ||||
Balance at end of period | 19,164 | |||
Westin Washington, D.C City Center | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | (60,550) | |||
Initial Cost - Land | 24,579 | |||
Initial Cost - Buildings and Improvements | 122,229 | |||
Costs Capitalized Subsequent to Acquisition | 13,044 | |||
Gross Amount at End of Year - Land | 24,579 | |||
Gross Amount at End of Year - Buildings and Improvements | 135,273 | |||
Gross Amount at End of Year - Total | 159,852 | 159,852 | ||
Accumulated Depreciation | $ (24,655) | (24,655) | ||
Net Book Value | $ 135,197 | |||
Depreciation Life (in years) | 40 years | |||
Deductions: | ||||
Balance at end of period | $ 159,852 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | ||||
Balance at end of period | $ 24,655 |
Uncategorized Items - drh10k123
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (15,286,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (15,286,000) |
Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (15,286,000) |