Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 14-May-14 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Entity Registrant Name | 'Sotherly Hotels Inc. | ' |
Entity Central Index Key | '0001301236 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 10,353,677 |
Sotherly Hotels LP [Member] | ' | ' |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Entity Registrant Name | 'SOTHERLY HOTELS LP | ' |
Entity Central Index Key | '0001313536 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
ASSETS | ' | ' |
Investment in hotel properties, net | $262,204,677 | $202,645,633 |
Investment in joint venture | 2,083,590 | 2,446,039 |
Cash and cash equivalents | 13,008,035 | 9,376,628 |
Restricted cash | 5,439,820 | 3,796,141 |
Accounts receivable, net | 3,367,565 | 1,982,091 |
Accounts receivable - affiliate | 77,692 | 101,439 |
Prepaid expenses, inventory and other assets | 3,459,365 | 2,444,975 |
Shell Island sublease, net | 180,147 | 240,196 |
Deferred income taxes | 1,921,441 | 1,186,122 |
Deferred financing costs, net | 5,066,625 | 3,820,838 |
TOTAL ASSETS | 296,808,957 | 228,040,102 |
LIABILITIES | ' | ' |
Mortgage loans | 206,554,064 | 160,363,549 |
Bridge loan | 19,000,000 | ' |
Unsecured notes | 27,600,000 | 27,600,000 |
Accounts payable and accrued liabilities | 9,677,240 | 7,650,219 |
Advance deposits | 1,573,335 | 666,758 |
Dividends and distributions payable | 589,851 | 588,197 |
TOTAL LIABILITIES | 264,994,490 | 196,868,723 |
Commitments and contingencies (see Note 6) | ' | ' |
Sotherly Hotels Inc. stockholders' equity | ' | ' |
Preferred stock, par value $0.01, 1,000,000 shares authorized, 0 shares issued and outstanding | ' | ' |
Common stock, par value $0.01, 49,000,000 shares authorized, 10,243,677 shares and 10,206,927 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively | 102,437 | 102,069 |
Additional paid in capital | 57,764,370 | 57,534,113 |
Distributions in excess of retained earnings | -31,888,880 | -32,210,917 |
Total Sotherly Hotels Inc. stockholders' equity | 25,977,927 | 25,425,265 |
Noncontrolling interest | 5,836,540 | 5,746,114 |
TOTAL EQUITY | 31,814,467 | 31,171,379 |
PARTNERS' CAPITAL | ' | ' |
TOTAL LIABILITIES AND EQUITY | 296,808,957 | 228,040,102 |
Sotherly Hotels LP [Member] | ' | ' |
ASSETS | ' | ' |
Investment in hotel properties, net | 262,204,677 | 202,645,633 |
Investment in joint venture | 2,083,590 | 2,446,039 |
Cash and cash equivalents | 13,008,035 | 9,376,628 |
Restricted cash | 5,439,820 | 3,796,141 |
Accounts receivable, net | 3,367,565 | 1,982,091 |
Accounts receivable - affiliate | 77,692 | 101,439 |
Prepaid expenses, inventory and other assets | 3,459,365 | 2,444,975 |
Shell Island sublease, net | 180,147 | 240,196 |
Deferred income taxes | 1,921,441 | 1,186,122 |
Deferred financing costs, net | 5,066,625 | 3,820,838 |
TOTAL ASSETS | 296,808,957 | 228,040,102 |
LIABILITIES | ' | ' |
Mortgage loans | 206,554,064 | 160,363,549 |
Bridge loan | 19,000,000 | ' |
Unsecured notes | 27,600,000 | 27,600,000 |
Accounts payable and accrued liabilities | 9,677,240 | 7,650,219 |
Advance deposits | 1,573,335 | 666,758 |
Dividends and distributions payable | 589,851 | 588,197 |
TOTAL LIABILITIES | 264,994,490 | 196,868,723 |
Commitments and contingencies (see Note 6) | ' | ' |
PARTNERS' CAPITAL | ' | ' |
General Partner: 131,079 and 130,711 units issued and outstanding as of March 31, 2014 and December 31, 2013, respectively | 565,202 | 557,479 |
Limited Partners: 12,976,725 and 12,940,343 units issued and outstanding as of March 31, 2014 and December 31, 2013, respectively | 31,249,265 | 30,613,900 |
TOTAL PARTNERS' CAPITAL | 31,814,467 | 31,171,379 |
TOTAL LIABILITIES AND EQUITY | $296,808,957 | $228,040,102 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 49,000,000 | 49,000,000 |
Common stock, shares issued | 10,243,677 | 10,206,927 |
Common stock, shares outstanding | 10,243,677 | 10,206,927 |
Sotherly Hotels LP [Member] | ' | ' |
General Partner, units issued | 131,079 | 130,711 |
General Partner, units outstanding | 131,079 | 130,711 |
Limited Partner, units issued | 12,976,725 | 12,940,343 |
Limited Partner, units outstanding | 12,976,725 | 12,940,343 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
REVENUE | ' | ' |
Rooms department | $17,453,189 | $14,249,959 |
Food and beverage department | 6,251,683 | 4,851,571 |
Other operating departments | 1,305,517 | 1,088,282 |
Total revenue | 25,010,389 | 20,189,812 |
Hotel operating expenses | ' | ' |
Rooms department | 4,751,526 | 4,013,733 |
Food and beverage department | 4,070,370 | 3,224,480 |
Other operating departments | 201,507 | 106,674 |
Indirect | 9,483,873 | 7,815,061 |
Total hotel operating expenses | 18,507,276 | 15,159,948 |
Depreciation and amortization | 2,434,328 | 2,052,821 |
Corporate general and administrative | 1,307,790 | 1,093,787 |
Total operating expenses | 22,249,394 | 18,306,556 |
NET OPERATING INCOME | 2,760,995 | 1,883,256 |
Other income (expense) | ' | ' |
Interest expense | -2,883,439 | -2,680,547 |
Interest income | 1,889 | 3,906 |
Equity income in joint venture | 387,550 | 469,739 |
Unrealized loss on warrant derivative | ' | -2,769,065 |
Net income (loss) before income taxes | 266,995 | -3,092,711 |
Income tax benefit (provision) | 735,319 | -263,055 |
Net income (loss) | 1,002,314 | -3,355,766 |
Add: Net (income) loss attributable to the noncontrolling interest | -219,312 | 760,850 |
Net income (loss) attributable to the Company | 783,002 | -2,594,916 |
Net income (loss) per share attributable to the Company | ' | ' |
Basic and diluted | $0.08 | ($0.26) |
Weighted average number of shares outstanding | ' | ' |
Basic and diluted | 10,225,710 | 10,080,375 |
Sotherly Hotels LP [Member] | ' | ' |
REVENUE | ' | ' |
Rooms department | 17,453,189 | 14,249,959 |
Food and beverage department | 6,251,683 | 4,851,571 |
Other operating departments | 1,305,517 | 1,088,282 |
Total revenue | 25,010,389 | 20,189,812 |
Hotel operating expenses | ' | ' |
Rooms department | 4,751,526 | 4,013,733 |
Food and beverage department | 4,070,370 | 3,224,480 |
Other operating departments | 201,507 | 106,674 |
Indirect | 9,483,873 | 7,815,061 |
Total hotel operating expenses | 18,507,276 | 15,159,948 |
Depreciation and amortization | 2,434,328 | 2,052,821 |
Corporate general and administrative | 1,307,790 | 1,093,787 |
Total operating expenses | 22,249,394 | 18,306,556 |
NET OPERATING INCOME | 2,760,995 | 1,883,256 |
Other income (expense) | ' | ' |
Interest expense | -2,883,439 | -2,680,547 |
Interest income | 1,889 | 3,906 |
Equity income in joint venture | 387,550 | 469,739 |
Unrealized loss on warrant derivative | ' | -2,769,065 |
Net income (loss) before income taxes | 266,995 | -3,092,711 |
Income tax benefit (provision) | 735,319 | -263,055 |
Net income (loss) | $1,002,314 | ($3,355,766) |
Net income (loss) per share attributable to the Company | ' | ' |
Basic and diluted | $0.08 | ($0.26) |
Weighted average number of shares outstanding | ' | ' |
Basic and diluted | 13,089,837 | 13,035,992 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Equity (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Distributions in Excess of Retained Earnings [Member] | Noncontrolling Interest [Member] |
Balances, beginning at Dec. 31, 2013 | $31,171,379 | $102,069 | $57,534,113 | ($32,210,917) | $5,746,114 |
Balances, shares, beginning at Dec. 31, 2013 | ' | 10,206,927 | ' | ' | ' |
Issuance of unrestricted common stock awards | 147,360 | 248 | 147,112 | ' | ' |
Issuance of unrestricted common stock awards, shares | ' | 24,750 | ' | ' | ' |
Issuance of restricted common stock awards | 78,285 | 120 | 78,165 | ' | ' |
Issuance of restricted common stock awards, shares | ' | 12,000 | ' | ' | ' |
Amortization of restricted stock award | 4,980 | ' | 4,980 | ' | ' |
Dividends and distributions declared | -589,851 | ' | ' | -460,965 | -128,886 |
Net income | 1,002,314 | ' | ' | 783,002 | 219,312 |
Balances, ending at Mar. 31, 2014 | $31,814,467 | $102,437 | $57,764,370 | ($31,888,880) | $5,836,540 |
Balances, shares, ending at Mar. 31, 2014 | ' | 10,243,677 | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Cash flows from operating activities: | ' | ' |
Net income (loss) | $1,002,314 | ($3,355,766) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ' | ' |
Depreciation and amortization | 2,434,328 | 2,052,821 |
Equity income in joint venture | -387,550 | -469,739 |
Unrealized loss on warrant derivative | ' | 2,769,065 |
Amortization of deferred financing costs | 217,815 | 262,099 |
Paid-in-kind interest | ' | 69,641 |
Charges related to equity-based compensation | 230,625 | 161,500 |
Changes in assets and liabilities: | ' | ' |
Restricted cash | -325,124 | -242,182 |
Accounts receivable | -920,187 | -825,869 |
Prepaid expenses, inventory and other assets | -791,190 | -721,497 |
Deferred income taxes | -735,319 | 261,696 |
Accounts payable and other accrued liabilities | 2,422,817 | 1,801,480 |
Advance deposits | 441,704 | 314,709 |
Accounts receivable - affiliate | 23,748 | 1,552 |
Net cash provided by operating activities | 3,613,981 | 2,079,510 |
Cash flows from investing activities: | ' | ' |
Acquisition of hotel properties | -61,106,085 | ' |
Improvements and additions to hotel properties | -1,322,677 | -1,101,117 |
Distributions from joint venture | 750,000 | ' |
Funding of restricted cash reserves | -656,396 | -338,538 |
Proceeds of restricted cash reserves | 962,499 | 541,711 |
Net cash used in investing activities | -61,372,659 | -897,944 |
Cash flows from financing activities: | ' | ' |
Proceeds of mortgage debt | 45,600,000 | 2,225,613 |
Proceeds of loans | 19,000,000 | ' |
Redemption of redeemable preferred stock | ' | -1,901,547 |
Dividends and distributions paid | -588,197 | -389,179 |
Payment of deferred financing costs | -1,712,233 | -81,501 |
Payments on mortgage debt and loans | -909,485 | -976,615 |
Net cash provided by (used in) financing activities | 61,390,085 | -1,123,229 |
Net increase in cash and cash equivalents | 3,631,407 | 58,337 |
Cash and cash equivalents at the beginning of the period | 9,376,628 | 7,175,716 |
Cash and cash equivalents at the end of the period | 13,008,035 | 7,234,053 |
Supplemental disclosures: | ' | ' |
Cash paid during the period for interest | 2,476,016 | 2,408,593 |
Cash paid during the period for income taxes | 23,000 | 33,914 |
Non-cash investing and financing activities: | ' | ' |
Proceeds of mortgage debt contributed to restricted cash reserves | 1,500,000 | ' |
Sotherly Hotels LP [Member] | ' | ' |
Cash flows from operating activities: | ' | ' |
Net income (loss) | 1,002,314 | -3,355,766 |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ' | ' |
Depreciation and amortization | 2,434,328 | 2,052,821 |
Equity income in joint venture | -387,550 | -469,739 |
Unrealized loss on warrant derivative | ' | 2,769,065 |
Amortization of deferred financing costs | 217,815 | 262,099 |
Paid-in-kind interest | ' | 69,641 |
Charges related to equity-based compensation | 230,625 | 161,500 |
Changes in assets and liabilities: | ' | ' |
Restricted cash | -325,124 | -242,182 |
Accounts receivable | -920,187 | -825,869 |
Prepaid expenses, inventory and other assets | -791,190 | -721,497 |
Deferred income taxes | -735,319 | 261,696 |
Accounts payable and other accrued liabilities | 2,422,817 | 1,801,480 |
Advance deposits | 441,704 | 314,709 |
Accounts receivable - affiliate | 23,748 | 1,552 |
Net cash provided by operating activities | 3,613,981 | 2,079,510 |
Cash flows from investing activities: | ' | ' |
Acquisition of hotel properties | -61,106,085 | ' |
Improvements and additions to hotel properties | -1,322,677 | -1,101,117 |
Distributions from joint venture | 750,000 | ' |
Funding of restricted cash reserves | -656,396 | -338,538 |
Proceeds of restricted cash reserves | 962,499 | 541,711 |
Net cash used in investing activities | -61,372,659 | -897,944 |
Cash flows from financing activities: | ' | ' |
Proceeds of mortgage debt | 45,600,000 | 2,225,613 |
Proceeds of loans | 19,000,000 | ' |
Redemption of redeemable preferred stock | ' | -1,901,547 |
Dividends and distributions paid | -588,197 | -389,179 |
Payment of deferred financing costs | -1,712,233 | -81,501 |
Payments on mortgage debt and loans | -909,485 | -976,615 |
Net cash provided by (used in) financing activities | 61,390,085 | -1,123,229 |
Net increase in cash and cash equivalents | 3,631,407 | 58,337 |
Cash and cash equivalents at the beginning of the period | 9,376,628 | 7,175,716 |
Cash and cash equivalents at the end of the period | 13,008,035 | 7,234,053 |
Supplemental disclosures: | ' | ' |
Cash paid during the period for interest | 2,476,016 | 2,408,593 |
Cash paid during the period for income taxes | 23,000 | 33,914 |
Non-cash investing and financing activities: | ' | ' |
Proceeds of mortgage debt contributed to restricted cash reserves | $1,500,000 | ' |
Consolidated_Statement_of_Chan
Consolidated Statement of Changes in Partners' Capital (USD $) | Total | Sotherly Hotels LP [Member] | Sotherly Hotels LP [Member] | Sotherly Hotels LP [Member] |
General Partner [Member] | Limited Partners [Member] | |||
Balances, beginning at Dec. 31, 2013 | ' | $31,171,379 | $557,479 | $30,613,900 |
Balances, units, beginning at Dec. 31, 2013 | ' | ' | 130,711 | 12,940,343 |
Issuance of partnership units | ' | 225,645 | 2,260 | 223,385 |
Issuance of partnership units, number of units | ' | ' | 368 | 36,382 |
Amortization of restricted units award | 4,980 | 4,980 | 50 | 4,930 |
Distributions declared | ' | -589,851 | -4,610 | -585,241 |
Net income | 1,002,314 | 1,002,314 | 10,023 | 992,291 |
Balances, ending at Mar. 31, 2014 | ' | $31,814,467 | $565,202 | $31,249,265 |
Balances, units, ending at Mar. 31, 2014 | ' | ' | 131,079 | 12,976,725 |
Organization_and_Description_o
Organization and Description of Business | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Organization and Description of Business | ' |
1. Organization and Description of Business | |
Sotherly Hotels Inc., formerly MHI Hospitality Corporation (the “Company”), is a self-managed and self-administered lodging real estate investment trust (“REIT”) that was incorporated in Maryland on August 20, 2004 to own full-service, primarily upscale and upper-upscale hotels located in primary and secondary markets in the Mid-Atlantic and Southern United States. Many of the hotels operate under well-known national hotel brands such as Hilton, Crowne Plaza, Sheraton and Holiday Inn. | |
The Company commenced operations on December 21, 2004 when it completed its initial public offering and thereafter consummated the acquisition of six hotel properties (the “initial properties”). Substantially all of the Company’s assets are held by, and all of its operations are conducted through, Sotherly Hotels LP, formerly MHI Hospitality, L.P. (the “Operating Partnership”). The Company and the Operating Partnership also own a 25.0% noncontrolling interest in the Crowne Plaza Hollywood Beach Resort through a joint venture with CRP/MHI Holdings, LLC, an affiliate of both Carlyle Realty Partners V, L.P. and The Carlyle Group (“Carlyle”). | |
Pursuant to the terms of the Amended and Restated Agreement of Limited Partnership (the “Partnership Agreement”) of the Operating Partnership, the Company, as general partner, is not entitled to compensation for its services to the Operating Partnership. The Company, as general partner, conducts substantially all of its operations through the Operating Partnership and the Company’s administrative expenses are the obligations of the Operating Partnership. Additionally, the Company is entitled to reimbursement for any expenditure incurred by it on the Operating Partnership’s behalf. | |
For the Company to qualify as a REIT, it cannot operate hotels. Therefore, the Operating Partnership, which, at March 31, 2014, was approximately 78.1% owned by the Company, and its subsidiaries, lease the hotels to a subsidiary of MHI Hospitality TRS Holding Inc., MHI Hospitality TRS, LLC, (collectively, “MHI TRS”), a wholly-owned subsidiary of the Operating Partnership. MHI TRS then engages an eligible independent hotel management company, MHI Hotels Services, LLC (“MHI Hotels Services”), to operate the hotels under a management contract. MHI TRS is treated as a taxable REIT subsidiary for federal income tax purposes. | |
All references in this report to “we”, “us” and “our” refer to the Company, its Operating Partnership and its subsidiaries and predecessors, collectively, unless the context otherwise requires or where otherwise indicated. | |
Significant transactions occurring during the current and prior fiscal year include the following: | |
On March 22, 2013, we entered into a First Amendment to the Loan Agreement and other amendments to secure additional proceeds on the original $8.0 million mortgage on the DoubleTree by Hilton Brownstone-University hotel property with our existing lender, Premier Bank, Inc. Pursuant to the amended loan documents, the mortgage loan’s principal amount was increased to $10.0 million, the prepayment penalty was removed and the interest rate was fixed at 5.25%; if the mortgage loan is extended, it will adjust to a rate of 3.00% plus the current 5-year U.S. Treasury bill rate of interest, with an interest rate floor of 5.25%. The remaining original terms of the agreement remained the same. | |
On March 26, 2013, we used the net proceeds of the mortgage on the DoubleTree by Hilton Brownstone-University to make a special distribution by the Operating Partnership to the Company to redeem 1,902 shares of the Company’s Series A Cumulative Redeemable Preferred Stock (the “Preferred Stock”) for an aggregate redemption price of approximately $2.1 million plus the payment of accrued and unpaid cash and stock dividends. | |
On June 28, 2013, we entered into an agreement with TowneBank to extend the maturity of the mortgage on the Crowne Plaza Hampton Marina in Hampton, Virginia, until June 30, 2014. Under the terms of the extension, we made a principal payment of approximately $1.1 million to reduce the principal balance on the loan to approximately $6.0 million and are required to continue to make monthly principal payments of $16,000. Interest payable monthly pursuant to the mortgage will remain at a rate of LIBOR plus additional interest of 4.55% and a minimum total rate of interest of 5.00% per annum. Pursuant to certain terms and conditions, we may extend the maturity date of the loan to June 30, 2015. | |
On August 1, 2013, we obtained a $15.6 million mortgage with CIBC, Inc. on the DoubleTree by Hilton Raleigh Brownstone – University in Raleigh, North Carolina. The mortgage bears interest at a rate of 4.78% and provides for level payments of principal and interest on a monthly basis under a 30-year amortization schedule. The maturity date is August 1, 2018. Approximately $0.7 million of the loan proceeds were placed into a restricted reserve which can be disbursed to us upon satisfaction of certain financial performance criteria. The remaining proceeds of the mortgage were used to repay the existing indebtedness, to pay closing costs, to make a special distribution by the Operating Partnership to the Company to redeem 2,460 shares of Preferred Stock for an aggregate redemption price of approximately $2.7 million plus the payment of accrued and unpaid cash and stock dividends and for working capital. The redemption resulted in a prepayment fee of approximately $0.2 million. | |
On September 30, 2013, the Operating Partnership issued 8.0% senior unsecured notes (the “Notes”) in the aggregate amount of $27.6 million. The indenture requires quarterly payments of interest and matures on September 30, 2018. The proceeds were used to make a special distribution to the Company to redeem the remaining outstanding shares of Preferred Stock for an aggregate redemption price of approximately $10.7 million plus the payment of accrued and unpaid cash and stock dividends. The redemption resulted in a prepayment fee of approximately $0.7 million. | |
On October 23, 2013, the Company redeemed a portion of a warrant to purchase 1,900,000 shares of the Company’s common stock (the “Essex Warrant”) from Essex Illiquid, LLC and Richmond Hill Capital Partners, LP (collectively, the “Investors” or “Initial Holders”) corresponding to an aggregate of 900,000 Issuable Warrant Shares (the “First Tranche of Redeemed Warrant Shares”) for an aggregate cash redemption price of $3.2 million. The First Tranche of Redeemed Warrant Shares are no longer Issuable Warrant Shares under the Essex Warrant, and all exercise and other rights of the Initial Holders in respect of the Redeemed Warrant Shares under the Essex Warrant are terminated and extinguished. | |
Concurrently with the redemption of the 900,000 Issuable Warrant Shares, the Operating Partnership redeemed a portion of a warrant to purchase 1,900,000 units of the Operating Partnership (the “Operating Partnership Warrant”) corresponding to an aggregate of 900,000 Issuable Warrant Units, as defined in the Operating Partnership Warrant, for an aggregate cash redemption price of $3.2 million. | |
On November 13, 2013, we acquired 100% of the partnership interests of Houston Hotel Associates Limited Partnership, L.L.P., a Virginia limited liability partnership (“HHA”), for aggregate consideration of approximately $30.9 million in cash, the issuance to MHI Hotels, L.L.C., a Virginia limited liability company (“MHI Hotels”), of 32,929 units of limited partnership interests in the Operating Partnership, plus an additional amount for HHA’s working capital as of the closing date. HHA is the sole owner of the entity that indirectly owns the Crowne Plaza Houston Downtown. | |
On December 23, 2013, the Company redeemed the remaining portion of the Essex Warrant corresponding to an aggregate of 1,000,000 Issuable Warrant Shares (the “Final Tranche of Redeemed Warrant Shares”) for an aggregate cash redemption price of approximately $4.0 million. The Final Tranche of Redeemed Warrant Shares are no longer Issuable Warrant Shares under the Essex Warrant, and all exercise and other rights of the Initial Holders in respect of the Redeemed Warrant Shares under the Essex Warrant are terminated and extinguished. | |
Concurrently with the redemption of the 1,000,000 Issuable Warrant Shares, the Operating Partnership redeemed a portion of the Operating Partnership Warrant corresponding to an aggregate of 1,000,000 Issuable Warrant Units from the Company for an aggregate cash redemption price of approximately $4.0 million. | |
On December 27, 2013, through our joint venture with Carlyle, we entered into a credit and security agreement and other loan documents to secure a $57.0 million non-recourse mortgage on the Crowne Plaza Hollywood Beach Resort in Hollywood, Florida with Bank of America, N.A. The proceeds from the loan were used to repay the existing first mortgage, to pay closing costs, and to make a distribution to the joint venture partners. We used approximately $3.5 million of its distribution proceeds to repay its existing loan with Carlyle, and the remainder for general corporate purposes. | |
On March 26, 2014, we entered into a Note Agreement, Guaranty, and Pledge Agreement to secure a $19.0 million secured loan (the “Bridge Loan”) with Richmond Hill Capital Partners, LP (“Richmond Hill”) and Essex Equity Joint Investment Vehicle, LLC (collectively with Richmond Hill, the “Bridge Lenders”). The Bridge Loan bears interest at the rate of 10.0% per annum and matures on March 26, 2015. The loan also requires mandatory prepayment upon certain events, is subject to a prepayment premium if the loan is prepaid in full or in part prior to maturity and contains limited financial covenants. The loan is secured by a lien on our interest in our subsidiary that owns the Hilton Philadelphia Airport. | |
On March 27, 2014, we acquired the Georgian Terrace, a 326-room hotel in Atlanta, Georgia for the aggregate purchase price of approximately $61.1 million. Also included in the acquisition was a 698 space parking structure; all personal property and equipment located in or at the hotel; and a separate 0.6 acre development parcel with related development rights and improvements located thereon. In conjunction with the acquisition, we obtained a $41.5 million first mortgage from Bank of the Ozarks, of which $1.5 million of the proceeds was placed in a restricted cash reserve. The mortgage bears a floating rate of interest equal to LIBOR plus 3.75%, with a 4.00% floor and requires monthly payments of principal and interest on a 25-year amortization schedule following a 12-month interest-only period. The mortgage matures on March 27, 2017, but may be extended for two additional 1-year period subject to certain terms and conditions. | |
On March 31, 2014, we entered into a First Amendment and other amended loan documents to extend the maturity date and secure additional proceeds of approximately $5.6 million on the original $30.0 million mortgage on the Hilton Philadelphia Airport hotel with its existing lender, TD Bank, N.A. Pursuant to the First Amendment and other amended loan documents, the mortgage continues to bear interest at a rate of LIBOR plus 3.0% with a 3.50% floor, requires monthly payments of principal and interest on an amortization schedule over the remainder of the 25-year period that began with the commencement of the loan in March 2012, and extends the maturity date to April 1, 2019. | |
As a condition to obtaining the First Amendment to the mortgage on the Hilton Philadelphia Airport hotel, we were required to enter into a license agreement with a national hotel franchise through at least the term of the amended mortgage loan. As such, we entered into a 10-year franchise agreement with Hilton Worldwide and plan to rebrand the Hilton Philadelphia Airport hotel as a DoubleTree by Hilton in November 2014, subject to the completion of certain product improvement requirements. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||
2. Summary of Significant Accounting Policies | |||||||||||||
Basis of Presentation – The consolidated financial statements of the Company presented herein include all of the accounts of Sotherly Hotels Inc., the Operating Partnership, MHI TRS and subsidiaries. All significant inter-company balances and transactions have been eliminated. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. | |||||||||||||
The consolidated financial statements of the Operating Partnership presented herein include all of the accounts of Sotherly Hotels LP, MHI TRS and subsidiaries. All significant inter-company balances and transactions have been eliminated. Additionally, all administrative expenses of the Company and those expenditures made by the Company on behalf of the Operating Partnership are reflected as the administrative expenses, expenditures and obligations thereto of the Operating Partnership, pursuant to the terms of the Partnership Agreement. | |||||||||||||
Investment in Hotel Properties – Investments in hotel properties include investments in operating properties which are recorded at acquisition cost and allocated to land, property and equipment and identifiable intangible assets. 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 our accounts and any resulting gain or loss is included in the statements of operations. Expenditures under a renovation project, which constitute additions or improvements that extend the life of the property, are capitalized. | |||||||||||||
Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally 7 to 39 years for buildings and building improvements and 3 to 10 years for furniture, fixtures and equipment. Leasehold improvements are amortized over the shorter of the lease term or the useful lives of the related assets. | |||||||||||||
We review our investments in hotel properties for impairment whenever events or changes in circumstances indicate that the carrying value of the hotel properties may not be recoverable. Events or circumstances that may cause a review include, but are not limited to, adverse changes in the demand for lodging at the properties due to declining national or local economic conditions and/or new hotel construction in markets where the hotels are located. When such conditions exist, management performs an analysis to determine if the estimated undiscounted future cash flows from operations and the proceeds from the ultimate disposition of a hotel property exceed its carrying value. If the estimated undiscounted future cash flows are found to be less than the carrying amount of the asset, an adjustment to reduce the carrying amount to the related hotel property’s estimated fair market value would be recorded and an impairment loss recognized. | |||||||||||||
Investment in Joint Venture – Investment in joint venture represents our noncontrolling indirect 25.0% equity interest in (i) the entity that owns the Crowne Plaza Hollywood Beach Resort and (ii) the entity that leases the hotel and has engaged MHI Hotels Services to operate the hotel under a management contract. Carlyle owns a 75.0% controlling indirect interest in these entities. We account for our investment in the joint venture under the equity method of accounting and are entitled to receive our pro rata share of operating cash flow. We also have the opportunity to earn an incentive participation in the net sale proceeds based upon the achievement of certain overall investment returns, in addition to our pro rata share of net sale proceeds. | |||||||||||||
Cash and Cash Equivalents – We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. | |||||||||||||
Concentration of Credit Risk – We hold cash accounts at several institutions in excess of the Federal Deposit Insurance Corporation (the “FDIC”) protection limits of $250,000. Our exposure to credit loss in the event of the failure of these institutions is represented by the difference between the FDIC protection limit and the total amounts on deposit. Management monitors, on a regular basis, the financial condition of the financial institutions along with the balances there on deposit to minimize our potential risk. | |||||||||||||
Restricted Cash – Restricted cash includes real estate tax escrows, insurance escrows and reserves for replacements of furniture, fixtures and equipment pursuant to certain requirements in our various mortgage agreements. | |||||||||||||
Accounts Receivable – Accounts receivable consists primarily of hotel guest and banqueting receivables. Ongoing evaluations of collectability are performed and an allowance for potential credit losses is provided against the portion of accounts receivable that is estimated to be uncollectible. | |||||||||||||
Inventories – Inventories, consisting primarily of food and beverages, are stated at the lower of cost or market, with cost determined on a method that approximates first-in, first-out basis. | |||||||||||||
Franchise License Fees – Fees expended to obtain or renew a franchise license are amortized over the life of the license or renewal. The un-amortized franchise fees as of March 31, 2014 and December 31, 2013 were $261,114 and $196,989, respectively. Amortization expense for the three month period ended March 31, 2014 and 2013, each totaled $10,875, respectively. | |||||||||||||
Deferred Financing Costs – Deferred financing costs are recorded at cost and consist of loan fees and other costs incurred in issuing debt. Amortization of deferred financing costs is computed using a method that approximates the effective interest method over the term of the related debt and is included in interest expense in the consolidated statements of operations. | |||||||||||||
Derivative Instruments – Our derivative instruments are reflected as assets or liabilities on the balance sheet and measured at fair value. Derivative instruments used to hedge the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as an interest rate risk, are considered fair value hedges. Derivative instruments used to hedge exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. For a derivative instrument designated as a cash flow hedge, the change in fair value each period is reported in accumulated other comprehensive income in stockholders’ equity and partners’ capital to the extent the hedge is effective. For a derivative instrument designated as a fair value hedge, the change in fair value each period is reported in earnings along with the change in fair value of the hedged item attributable to the risk being hedged. For a derivative instrument that does not qualify for hedge accounting or is not designated as a hedge, the change in fair value each period is reported in earnings. | |||||||||||||
We use derivative instruments to add stability to interest expense and to manage our exposure to interest-rate movements. To accomplish this objective, we primarily used an interest-rate swap, which was required under the then-existing credit agreement and acted as a cash flow hedge involving the receipts of variable-rate amounts from a counterparty in exchange for us making fixed-rate payments without exchange of the underlying principal amount. We valued the interest-rate swap at fair value, which we define as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). We also use derivative instruments in the Company’s stock to obtain more favorable terms on our financing. We do not enter into contracts to purchase or sell derivative instruments for speculative trading purposes. | |||||||||||||
Fair Value Measurements – | |||||||||||||
We classify the inputs used to measure fair value into the following hierarchy: | |||||||||||||
Level 1 | Unadjusted quoted prices in active markets for identical assets or liabilities. | ||||||||||||
Level 2 | Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. | ||||||||||||
Level 3 | Unobservable inputs for the asset or liability. | ||||||||||||
We endeavor to utilize the best available information in measuring fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following table represents our debt instruments measured at fair value and the basis for that measurement: | |||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||
December 31, 2013 | |||||||||||||
Unsecured notes(1) | $ | (28,770,240 | ) | $ | — | $ | — | ||||||
31-Mar-14 | |||||||||||||
Unsecured notes(1) | $ | (28,814,400 | ) | $ | — | $ | — | ||||||
-1 | Unsecured notes are recorded at historical cost on our Consolidated Balance Sheet as of March 31, 2014 and December 31, 2013. | ||||||||||||
Noncontrolling Interest in Operating Partnership – Certain hotel properties have been acquired, in part, by the Operating Partnership through the issuance of limited partnership units of the Operating Partnership. The noncontrolling interest in the Operating Partnership is: (i) increased or decreased by the limited partners’ pro-rata share of the Operating Partnership’s net income or net loss, respectively; (ii) decreased by distributions; (iii) decreased by redemption of partnership units for the Company’s common stock; and (iv) adjusted to equal the net equity of the Operating Partnership multiplied by the limited partners’ ownership percentage immediately after each issuance of units of the Operating Partnership and/or the Company’s common stock through an adjustment to additional paid-in capital. Net income or net loss is allocated to the noncontrolling interest in the Operating Partnership based on the weighted average percentage ownership throughout the period. | |||||||||||||
Revenue Recognition – Revenues from operations of the hotels are recognized when the services are provided. Revenues consist of room sales, food and beverage sales, and other hotel department revenues, such as telephone, parking, gift shop sales and rentals from restaurant tenants, rooftop leases and gift shop operators. Revenues are reported net of occupancy and other taxes collected from customers and remitted to governmental authorities. | |||||||||||||
Income Taxes – The Company has elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended. As a REIT, the Company generally will not be subject to federal income tax. MHI TRS, our wholly owned taxable REIT subsidiary which leases our hotels from subsidiaries of the Operating Partnership, is subject to federal and state income taxes. | |||||||||||||
We account for income taxes using the asset and liability method under which deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. As of March 31, 2014, we had no uncertain tax positions. Our policy is to recognize interest and penalties related to uncertain tax positions in income tax expense. As of March 31, 2014, the tax years that remain subject to examination by the major tax jurisdictions to which the Company is subject generally include the calendar years 2010 through 2013. In addition, as of March 31, 2014, the tax years that remain subject to examination by the major tax jurisdictions to which MHI TRS is subject generally include the calendar years 2004 through 2009. | |||||||||||||
The Operating Partnership is generally not subject to federal and state income taxes as the unit holders of the Partnership are subject to tax on their respective shares of the Partnership’s taxable income. | |||||||||||||
Stock-based Compensation – The Company’s 2004 Long Term Incentive Plan (the “2004 Plan”) and its 2013 Long-Term Incentive Plan (the “2013 Plan”), which the Company’s stockholders approved in April 2013, permit the grant of stock options, restricted stock and performance share compensation awards to its employees for up to 350,000 and 750,000 shares of common stock, respectively. The Company believes that such awards better align the interests of its employees with those of its stockholders. | |||||||||||||
Under the 2004 Plan, the Company has made restricted stock and deferred stock awards totaling 337,438 shares including 255,938 shares issued to certain executives and employees and 81,500 restricted shares issued to its independent directors. Of the 255,938 shares issued to certain of our executives and employees, all have vested except for 24,000 shares which were issued to the Chief Financial Officer upon execution of his employment contract. These shares are to vest pro rata on each of the next four anniversaries of the effective date of his employment agreement. All of the 81,500 restricted shares issued to the Company’s independent directors have vested. | |||||||||||||
Under the 2013 Plan, the Company has made issuances totaling 36,750 shares, consisting of 24,000 non-restricted shares issued to certain executives and 12,000 restricted shares and 750 non-restricted shares issued to its independent directors. All of the restricted shares will vest at the end of 2014. | |||||||||||||
The value of the awards is charged to compensation expense on a straight-line basis over the vesting or service period based on the Company’s stock price on the date of grant or issuance. Previously, under the 2004 Plan, and currently, under the 2013 Plan, the Company may issue a variety of performance-based stock awards, including nonqualified stock options. As of March 31, 2014, no performance-based stock awards have been granted. Consequently, stock-based compensation as determined under the fair-value method would be the same under the intrinsic-value method. Total compensation cost recognized under the 2004 Plan and 2013 Plan for the three months ended March 31, 2014 and 2013 was $19,571 and $21,958, respectively. | |||||||||||||
Comprehensive Income (Loss) – Comprehensive income (loss) includes all changes in equity (net assets) during a period from non-owner sources. We do not have any items of comprehensive income (loss) other than net income (loss). | |||||||||||||
Segment Information – We have determined that our business is conducted in one reportable segment: hotel ownership. | |||||||||||||
Use of Estimates – The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America 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. | |||||||||||||
Reclassifications – Certain reclassifications have been made to the prior period balances to conform to the current period presentation. | |||||||||||||
New Accounting Pronouncements – There are no recent accounting pronouncements which we believe will have a material impact on our consolidated financial statements. |
Acquisition_of_Hotel_Propertie
Acquisition of Hotel Properties | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Acquisition of Hotel Properties | ' | ||||||||
3. Acquisition of Hotel Properties | |||||||||
Georgian Terrace Acquisition. On March 27, 2014, we acquired the 326-room Georgian Terrace in Atlanta, Georgia, for approximately $61.1 million. The preliminary allocation of the purchase price based on fair values is as follows: | |||||||||
Georgian Terrace | |||||||||
Land and land improvements | $ | 10,127,687 | |||||||
Buildings and improvements | 45,385,939 | ||||||||
Furniture, fixtures and equipment | 5,163,135 | ||||||||
Investment in hotel properties | 60,676,761 | ||||||||
Restricted cash | 124,658 | ||||||||
Accounts receivable | 465,287 | ||||||||
Prepaid expenses, inventory and other assets | 430,997 | ||||||||
Accounts payable and accrued liabilities | (591,618 | ) | |||||||
Net cash | $ | 61,106,085 | |||||||
The results of operations of the hotel are included in our consolidated financial statements from the date of acquisition. The total revenue and net loss related to the acquisition for the period March 27, 2014 to March 31, 2014 are approximately $333,000 and $172,000, respectively. The following pro forma financial information presents the results of operations of the Company and the Operating Partnership for the three months ended March 31, 2014 and 2013 as if the acquisitions of the Georgian Terrace and the Crown Plaza Houston Downtown had taken place on January 1, 2013. The pro forma results have been prepared for comparative purposes only and do not purport to be indicative of the results of operations which would have actually occurred had the transaction taken place on January 1, 2013, or of future results of operations: | |||||||||
Three months ended | |||||||||
March 31, 2014 | March 31, 2013 | ||||||||
(unaudited) | (unaudited) | ||||||||
Pro forma revenues | $ | 29,781,052 | $ | 28,456,030 | |||||
Pro forma operating expenses | 26,644,824 | 26,150,225 | |||||||
Pro forma operating income | 3,136,228 | 2,305,805 | |||||||
Pro forma net income (loss) | 268,146 | (3,302,747 | ) | ||||||
Pro forma earnings (loss) per basic and diluted share and unit | 0.03 | (0.33 | ) | ||||||
Pro forma basic and diluted common shares | 10,225,710 | 10,080,375 |
Investment_in_Hotel_Properties
Investment in Hotel Properties | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Real Estate [Abstract] | ' | ||||||||
Investment in Hotel Properties | ' | ||||||||
4. Investment in Hotel Properties | |||||||||
Investment in hotel properties as of March 31, 2014 and December 31, 2013 consisted of the following: | |||||||||
March 31, 2014 | December 31, 2013 | ||||||||
(unaudited) | |||||||||
Land and land improvements | $ | 37,083,998 | $ | 26,956,311 | |||||
Buildings and improvements | 252,101,033 | 206,101,663 | |||||||
Furniture, fixtures and equipment | 35,321,580 | 29,829,908 | |||||||
324,506,611 | 262,887,882 | ||||||||
Less: accumulated depreciation and impairment | (62,301,934 | ) | (60,242,249 | ) | |||||
$ | 262,204,677 | $ | 202,645,633 | ||||||
Debt
Debt | 3 Months Ended | ||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||||||||
Debt | ' | ||||||||||||||||||||||
5. Debt | |||||||||||||||||||||||
Mortgage Debt. As of March 31, 2014 and December 31, 2013, we had approximately $206.6 million and approximately $160.4 million of outstanding mortgage debt, respectively. The following table sets forth our mortgage debt obligations on our hotels. | |||||||||||||||||||||||
Balance Outstanding as of | Prepayment | Maturity | Amortization | Interest Rate | |||||||||||||||||||
Property | March 31, | December 31, | Penalties | Date | Provisions | ||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Crowne Plaza Hampton Marina | $ | 5,855,500 | $ | 5,903,500 | None | 6/30/14 | (1) | $ | 16,000 | (2) | LIBOR plus 4.55 | %(3) | |||||||||||
Crowne Plaza Houston Downtown | 21,308,666 | 21,428,258 | Yes(4) | 4/12/16 | (5) | 25 years | 4.5 | % | |||||||||||||||
Crowne Plaza Jacksonville Riverfront | 13,656,527 | 13,756,209 | None | 7/10/15 | (6) | 25 years | LIBOR plus 3.00 | % | |||||||||||||||
Crowne Plaza Tampa Westshore | 13,530,331 | 13,602,701 | None | 6/18/17 | 25 years | 5.6 | % | ||||||||||||||||
DoubleTree by Hilton Brownstone – University | 15,465,974 | 15,525,626 | -7 | 8/1/18 | 30 years | 4.78 | % | ||||||||||||||||
Georgian Terrace | 41,500,000 | — | Yes(8) | 3/27/17 | (14) | 25 years | LIBOR plus 3.75 | %(13) | |||||||||||||||
Hilton Philadelphia Airport | 34,130,509 | 28,731,151 | None | 4/1/19 | 25 years | LIBOR plus 3.00 | %(9) | ||||||||||||||||
Hilton Savannah DeSoto | 21,465,771 | 21,546,423 | Yes(10) | 8/1/17 | 25 years | 6.06 | % | ||||||||||||||||
Hilton Wilmington Riverside | 20,789,664 | 20,919,030 | Yes(10) | 4/1/17 | 25 years | 6.21 | % | ||||||||||||||||
Holiday Inn Laurel West | 7,099,558 | 7,141,845 | Yes(11) | 8/5/21 | 25 years | 5.25 | %(12) | ||||||||||||||||
Sheraton Louisville Riverside | 11,751,564 | 11,808,806 | -7 | 1/6/17 | 25 years | 6.24 | % | ||||||||||||||||
Total | $ | 206,554,064 | $ | 160,363,549 | |||||||||||||||||||
-1 | The note provides that the mortgage can be extended until June 2015 if certain conditions have been satisfied. | ||||||||||||||||||||||
-2 | The Operating Partnership is required to make monthly principal payments of $16,000. | ||||||||||||||||||||||
-3 | The note bears a minimum interest rate of 5.00%. | ||||||||||||||||||||||
-4 | The note may not be prepaid during the first two years of the term. | ||||||||||||||||||||||
-5 | The note provides that the mortgage can be extended until November 2018 if certain conditions have been satisfied. | ||||||||||||||||||||||
-6 | The note provides that the mortgage can be extended until July 2016 if certain conditions have been satisfied. | ||||||||||||||||||||||
-7 | With limited exception, the note may not be prepaid until two months before maturity. | ||||||||||||||||||||||
-8 | The note is subject to a prepayment penalty if the loan is prepaid in full or in part prior to March 26, 2015. | ||||||||||||||||||||||
-9 | The note bears a minimum interest rate of 3.50%. | ||||||||||||||||||||||
-10 | The notes may not be prepaid during the first six years of the terms. Prepayment can be made with penalty thereafter until 90 days before maturity. | ||||||||||||||||||||||
-11 | Pre-payment can be made with penalty until 180 days before the fifth anniversary of the commencement date of the loan or from such date until 180 days before the maturity. | ||||||||||||||||||||||
-12 | The note provides that after five years, the rate of interest will adjust to a rate of 3.00% per annum plus the then-current five-year U.S. Treasury rate of interest, with a floor of 5.25%. | ||||||||||||||||||||||
-13 | The note bears a minimum interest rate of 4.00%. | ||||||||||||||||||||||
-14 | The note provides that the mortgage can be extended through the fourth and fifth anniversary of the commencement date of the loan, or March 27, 2018 and March 27, 2019, respectively, subject to certain conditions. | ||||||||||||||||||||||
We were in compliance with all debt covenants, current on all loan payments and not otherwise in default under any of our mortgage loans, as of March 31, 2014. | |||||||||||||||||||||||
Total future mortgage debt maturities, without respect to any extension of loan maturity, as of March 31, 2014 were as follows: | |||||||||||||||||||||||
The remaining nine month period ending December 31, 2014 | $ | 8,671,252 | |||||||||||||||||||||
December 31, 2015 | 17,441,142 | ||||||||||||||||||||||
December 31, 2016 | 24,401,632 | ||||||||||||||||||||||
December 31, 2017 | 104,801,938 | ||||||||||||||||||||||
December 31, 2018 | 15,850,414 | ||||||||||||||||||||||
December 31, 2019 and thereafter | 35,387,686 | ||||||||||||||||||||||
Total future maturities | $ | 206,554,064 | |||||||||||||||||||||
Unsecured Notes. On September 30, 2013, the Operating Partnership issued 8.0% senior unsecured notes in the aggregate amount of $27.6 million. The indenture requires quarterly payments of interest and matures on September 30, 2018. The Notes are callable after September 30, 2016 at 101% of face value. | |||||||||||||||||||||||
Bridge Financing. On March 26, 2014, we entered into a Note Agreement, Guaranty, and Pledge Agreement to secure a $19.0 million secured Bridge Loan with the Bridge Lenders. The Bridge Loan has a maturity date of March 26, 2015; carries a fixed interest rate of 10.0% per annum; is subject to a prepayment premium if the loan is prepaid in full or in part prior to March 26, 2015; requires mandatory prepayment upon certain events; contains limited financial covenants; and is secured by a lien on 100% of the limited partnership interests in the subsidiary that owns the Hilton Philadelphia Airport hotel. The outstanding balance on the Bridge Loan at March 31, 2014 and December 31, 2013 was $19.0 million and $0.0 million, respectively. |
Preferred_Stock_Preferred_Inte
Preferred Stock, Preferred Interest and Warrants | 3 Months Ended |
Mar. 31, 2014 | |
Text Block [Abstract] | ' |
Preferred Stock, Preferred Interest and Warrants | ' |
6. Preferred Stock, Preferred Interest and Warrants | |
Preferred Stock and Preferred Interest. On April 18, 2011, the Company completed a private placement to the Investors pursuant to the Securities Purchase Agreement for gross proceeds of $25.0 million. The Company issued 25,000 shares of Preferred Stock and the Essex Warrant to purchase 1,900,000 shares of the Company’s common stock, par value $0.01 per share. | |
The Company designated a class of preferred stock, the Preferred Stock, consisting of 27,650 shares with $0.01 par value per share, having a liquidation preference of $1,000.00 per share pursuant to Articles Supplementary (the “Articles Supplementary”), which sets forth the preferences, rights and restrictions for the Preferred Stock. The Preferred Stock is non-voting and non-convertible. The holders of the Preferred Stock had a right to payment of a cumulative dividend payable quarterly (i) in cash at an annual rate of 10.0% of the liquidation preference per share and (ii) in additional shares of Preferred Stock at an annual rate of 2.0% of the liquidation preference per share. As set forth in the Articles Supplementary, the holder(s) of the Company’s Preferred Stock had the exclusive right, voting separately as a single class, to elect one (1) member of the Company’s board of directors. In addition, under certain circumstances as set forth in the Articles Supplementary, the holder(s) of the Company’s Preferred Stock were entitled to appoint a majority of the members of the Company’s board of directors. The holder(s) of the Company’s Preferred Stock were entitled to require that the Company redeem the Preferred Stock under certain circumstances, but no later than April 18, 2016, and on such terms and at such price as is set forth in the Articles Supplementary. | |
Concurrently with the issuance of the Preferred Stock, the Operating Partnership issued the Preferred Interest to the Company in an amount equivalent to the proceeds of the Preferred Stock received by the general partner pursuant to the terms of the Partnership Agreement. The Partnership Agreement also authorizes the general partner to make special distributions to the Company related to its Preferred Interest for the sole purpose of fulfilling the Company’s obligations with respect to the Preferred Stock. In addition, the Operating Partnership issued the Operating Partnership Warrant to purchase 1,900,000 partnership units at an amount equal to the consideration received by the Company upon exercise of the Essex Warrant, as amended. | |
On March 26, 2013, we used the net proceeds of an expansion of the mortgage on the DoubleTree by Hilton Brownstone-University to make a special distribution by the Operating Partnership to the Company to redeem 1,902 shares of Preferred Stock for an aggregate redemption price of approximately $2.1 million plus the payment of related accrued and unpaid cash and stock dividends. The redemption resulted in a prepayment fee of approximately $0.2 million. In addition, approximately $0.1 million in unamortized issuance costs related to the redeemed shares were written off. | |
On August 1, 2013, we used the net proceeds of a new mortgage on the DoubleTree by Hilton Brownstone-University to make a special distribution by the Operating Partnership to the Company to redeem 2,460 shares of Preferred Stock for an aggregate redemption price of approximately $2.7 million plus the payment of related accrued and unpaid cash and stock dividends. The redemption resulted in a prepayment fee of approximately $0.2 million. In addition, approximately $0.1 million in unamortized issuance costs related to the redeemed shares were written off. | |
On September 30, 2013, we used a portion of the proceeds of the Notes offering to make a special distribution by the Operating Partnership to the Company to redeem the remaining outstanding shares of Preferred Stock for an aggregate redemption price of approximately $10.7 million plus the payment of related accrued and unpaid cash and stock dividends. The redemption resulted in a prepayment fee of approximately $0.7 million. In addition, approximately $0.4 million in unamortized issuance costs related to the redeemed shares were written off. | |
As of March 31, 2014 and December 31, 2013, there were no shares of the Preferred Stock issued and outstanding. | |
As of March 31, 2014 and December 31, 2013, there was no redemption value in the Preferred Interest. | |
Warrants. The Essex Warrant, as modified, entitled the holder(s) to purchase up to 1,900,000 shares of the Company’s common stock at an exercise price of $2.25 per share. Pursuant to an amendment to the Essex Warrant, the exercise price per share of common stock covered by the Essex Warrant could have adjusted from time to time in the event of payment of cash dividends to holders of common stock by deducting from such exercise price the per-share amount of such cash dividends. Such adjustment could not take into account dividends declared prior to January 1, 2012. | |
Concurrently with the issuance of the Essex Warrant, the Operating Partnership issued the Operating Partnership Warrant to the Company. Under the terms of the Operating Partnership Warrant, the Company was obligated to exercise the Operating Partnership Warrant immediately and concurrently if at any time the Essex Warrant was exercised by its holders. In that event, the Operating Partnership would have issued an equivalent number of partnership units and would have been entitled to receive the proceeds received by the Company upon exercise of the Essex Warrant. | |
On October 23, 2013, the Company redeemed the First Tranche of Redeemed Warrant Shares for an aggregate cash redemption price of $3.2 million. The First Tranche of Redeemed Warrant Shares are no longer Issuable Warrant Shares under the Essex Warrant, and all exercise and other rights of the Initial Holders in respect of the Redeemed Warrant Shares under the Essex Warrant are terminated and extinguished. | |
Concurrently with the redemption of the 900,000 Issuable Warrant Shares, the Operating Partnership redeemed 900,000 Issuable Warrant Units, as defined in the Operating Partnership Warrant, for an aggregate cash redemption price of $3.2 million. | |
On December 23, 2013, the Company redeemed the Final Tranche of Redeemed Warrant Shares for an aggregate cash redemption price of approximately $4.0 million. The Final Tranche of Redeemed Warrant Shares are no longer Issuable Warrant Shares under the Essex Warrant, and all exercise and other rights of the Initial Holders in respect of the Redeemed Warrant Shares under the Essex Warrant are terminated and extinguished. | |
Concurrently with the redemption of the 1,000,000 Issuable Warrant Shares, the Operating Partnership redeemed 1,000,000 Issuable Warrant Units, as defined in the Operating Partnership Warrant, for an aggregate cash redemption price of approximately $4.0 million. The redeemed warrant units are no longer Issuable Warrant Units under the Operating Partnership Warrant, and all rights under the Operating Partnership Warrant are terminated and extinguished. | |
On the date of issuance, we determined the fair market value of the Essex Warrant was approximately $1.6 million using the Black-Scholes option pricing model assuming an exercise price of $2.25 per share of common stock, a risk-free interest rate of 2.26%, a dividend yield of 5.00%, expected volatility of 60.0%, and an expected term of 5.5 years. The fair market value is included in deferred financing costs. The deferred cost was amortized to interest expense in the accompanying consolidated statement of operations over the period of issuance to the mandatory redemption date of the Preferred Stock. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies | ' | ||||
7. Commitments and Contingencies | |||||
Ground, Building and Submerged Land Leases – We lease 2,086 square feet of commercial space next to the Savannah hotel property for use as an office, retail or conference space, or for any related or ancillary purposes for the hotel and/or atrium space. In December 2007, we signed an amendment to the lease to include rights to the outdoor esplanade adjacent to the leased commercial space. The areas are leased under a six-year operating lease, which expired October 31, 2006 and has been renewed for the second of three optional five-year renewal periods expiring October 31, 2011, October 31, 2016 and October 31, 2021, respectively. Rent expense for this operating lease for the three months ended March 31, 2014 and 2013 was $15,866 and $16,756, respectively. | |||||
We lease, as landlord, the entire fourteenth floor of the Hilton Savannah DeSoto to The Chatham Club, Inc. under a ninety-nine year lease expiring July 31, 2086. This lease was assumed upon the purchase of the building under the terms and conditions agreed to by the previous owner of the property. No rental income is recognized under the terms of this lease as the original lump sum rent payment of $990 was received by the previous owner and not prorated over the life of the lease. | |||||
We lease a parking lot adjacent to the DoubleTree by Hilton Brownstone-University in Raleigh, North Carolina. The land is leased under a second amendment, dated April 28, 1998, to a ground lease originally dated May 25, 1966. The original lease is a 50-year operating lease, which expires August 31, 2016. We exercised a renewal option for the first of three additional ten-year periods expiring August 31, 2026, August 31, 2036, and August 31, 2046, respectively. We hold an exclusive and irrevocable option to purchase the leased land at fair market value at the end of the original lease term, subject to the payment of an annual fee of $9,000, and other conditions. Rent expense for the three months ended March 31, 2014 and 2013, each totaled $23,871. | |||||
We lease land adjacent to the Crowne Plaza Tampa Westshore for use as parking under a five-year agreement with the Florida Department of Transportation that commenced in July 2009 and expires in July 2014. The agreement requires annual payments of $2,432, plus tax, and may be renewed for an additional five years. Rent expense for the three months ended March 31, 2014 and 2013, each totaled $651. | |||||
We lease certain submerged land in the Saint Johns River in front of the Crowne Plaza Jacksonville Riverfront from the Board of Trustees of the Internal Improvement Trust Fund of the State of Florida. The submerged land was leased under a five-year operating lease requiring annual payments of $4,961, which expired September 18, 2012. A new operating lease was executed requiring annual payments of $6,020 and expires September 18, 2017. Rent expense for the three months ended March 31, 2014 and 2013, each totaled $1,505. | |||||
We lease 4,836 square feet of commercial office space in Williamsburg, Virginia under an agreement, as amended, that commenced September 1, 2009 and expires August 31, 2018. Rent expense totaled $17,015 and $13,750 for the three month period ended March 31, 2014 and 2013, respectively. | |||||
We lease 1,632 square feet of commercial office space in Rockville, Maryland under an agreement that commenced December 14, 2009 and expires February 28, 2017. The agreement requires monthly payments at an annual rate of $22,848 for the first year of the lease term and monthly payments at an annual rate of $45,696 for the second year of the lease term, increasing 2.75% per year for the remainder of the lease term. Rent expense totaled $12,253 and $11,108 for the three months ended March 31, 2014 and 2013, respectively. | |||||
We also lease certain furniture and equipment under financing arrangements expiring between February 2014 and March 2017. | |||||
A schedule of minimum future lease payments for the following twelve-month periods is as follows: | |||||
The remaining nine month period ending December 31, 2014 | $ | 312,155 | |||
December 31, 2015 | 361,081 | ||||
December 31, 2016 | 324,723 | ||||
December 31, 2017 | 196,436 | ||||
December 31, 2018 | 158,721 | ||||
December 31, 2019 and thereafter | 732,092 | ||||
Total | $ | 2,085,208 | |||
Management Agreements – At March 31, 2014, each of our wholly-owned operating hotels, except for the Crowne Plaza Tampa Westshore, the Crowne Plaza Houston Downtown and the Georgian Terrace, are operated under a master management agreement with MHI Hotels Services that expires between December 2014 and April 2018. We entered into separate management agreements with MHI Hotels Services for the management of the Crowne Plaza Tampa Westshore that expires in March 2019 and for management of the Georgian Terrace that expires in March 2024. We also assumed the existing agreement for management of the Crowne Plaza Houston Downtown upon purchase of the hotel in November 2013, which expires in April 2016 (see Note 9). | |||||
Franchise Agreements – As of March 31, 2014, many of our hotels operate under franchise licenses from national hotel companies. Under the franchise agreements, we are required to pay a franchise fee generally between 2.5% and 5.0% of room revenues, plus additional fees for marketing, central reservation systems, and other franchisor programs and services that amount to between 2.5% and 6.0% of room revenues from the hotels. The franchise agreements currently expire between October 2014 and April 2023. | |||||
Restricted Cash Reserves – Each month, we are required to escrow with the lenders on the Hilton Wilmington Riverside, the Hilton Savannah DeSoto, the DoubleTree by Hilton Brownstone-University, the Sheraton Louisville Riverside and the Georgian Terrace an amount equal to 1/12 of the annual real estate taxes due for the properties. We are also required by several of our lenders to establish individual property improvement funds to cover the cost of replacing capital assets at our properties. Each month, those contributions equal 4.0% of gross revenues for the Hilton Savannah DeSoto, the Hilton Wilmington Riverside, the Sheraton Louisville Riverside, DoubleTree by Hilton Raleigh Brownstone-University, Crowne Plaza Houston Downtown, the Crowne Plaza Hampton Marina and the Georgian Terrace and equal 4.0% of room revenues for the Hilton Philadelphia Airport. | |||||
Litigation – We are not involved in any material litigation, nor, to our knowledge, is any material litigation threatened against us. We are involved in routine litigation arising out of the ordinary course of business, all of which we expect to be covered by insurance and none of which is expected to have a material impact on our financial condition or results of operations. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2014 | |
Equity [Abstract] | ' |
Equity | ' |
8. Equity | |
Preferred Stock – The Company has authorized 1,000,000 shares of preferred stock, of which 27,650 shares were issued as Series A Cumulative Redeemable Preferred Stock, as described above, and subsequently redeemed in 2013. None of the remaining authorized shares have been issued. | |
Common Stock – The Company is authorized to issue up to 49,000,000 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 the Company’s common stock are entitled to receive distributions when authorized by the Company’s board of directors out of assets legally available for the payment of distributions. | |
The following is a schedule of issuances, since January 1, 2013, of the Company’s common stock: | |
On February 14, 2014, the Company was issued 36,750 units in the Operating Partnership and awarded an aggregate of 24,000 shares of unrestricted stock to certain executives as well as 12,000 shares of restricted stock and 750 share of unrestricted stock to certain of its independent directors. | |
On August 14, 2013, one holder of units in the Operating Partnership redeemed 50,000 units for an equivalent number of shares of the Company’s common stock. | |
On April 1, 2013, one holder of units in the Operating Partnership redeemed 31,641 units for an equivalent number of shares of the Company’s common stock. | |
On March 1, 2013, one holder of units in the Operating Partnership redeemed 50,000 units for an equivalent number of shares of the Company’s common stock. | |
On January 25, 2013, the Company was issued 45,500 units in the Operating Partnership and awarded an aggregate of 30,500 shares of unrestricted stock to certain executives and employees as well as 15,000 shares of restricted stock to certain of its independent directors. | |
On January 1, 2013, the Company was issued 30,000 units in the Operating Partnership and granted 30,000 restricted shares to its Chief Financial Officer in accordance with the terms of his employment contract. | |
As of March 31, 2014 and December 31, 2013, the Company had 10,243,677 and 10,206,927 shares of common stock outstanding, respectively. | |
Operating Partnership Units – Holders of Operating Partnership units, other than the Company as general partner, have certain redemption rights, which enable them to cause the Operating Partnership to redeem their units in exchange for shares of the Company’s common stock on a one-for-one basis or, at the option of the Company, cash per unit equal to the average of the market price of the Company’s common stock for the 10 trading days immediately preceding the notice date of such redemption. The number of shares issuable upon exercise of the redemption rights will be adjusted upon the occurrence of stock splits, mergers, consolidations or similar pro-rata share transactions, which otherwise would have the effect of diluting the ownership interests of the limited partners or the stockholders of the Company. | |
The following is a schedule of issuances and redemptions, since January 1, 2013, of units in the Operating Partnership in addition to the issuances of units in the Operating Partnership to the Company described above: | |
On November 13, 2013, the Operating Partnership issued 32,929 limited partnership units in conjunction with the purchase of the partnership interests in HHA, which is the sole owner of the Crowne Plaza Houston Downtown. | |
On April 1, 2013, the Company redeemed 10,000 units in the Operating Partnership held by a trust controlled by two members of the Company’s board of directors for a total of $32,900 pursuant to the terms of the partnership agreement. | |
As of March 31, 2014 and December 31, 2013, the total number of Operating Partnership units outstanding was 13,107,804 and 13,071,054, respectively. | |
As of each March 31, 2014 and December 31, 2013, the total number of outstanding Operating Partnership units not owned by the Company was 2,864,127, with a fair market value of approximately $18.2 million and approximately $17.0 million, respectively, based on the price per share of the common stock on such respective dates. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
9. Related Party Transactions | |
MHI Hotels Services. As of March 31, 2014, the members of MHI Hotels Services (a company that is majority-owned and controlled by the Company’s chief executive officer, its former chief financial officer as well as a current member of its board of directors and a former member of its board of directors) owned approximately 10.7% of the Company’s outstanding common stock and 1,752,958 Operating Partnership units. The following is a summary of the transactions with MHI Hotels Services: | |
Accounts Receivable – We were due $77,692 and $101,439 from MHI Hotels Services at March 31, 2014 and December 31, 2013, respectively. | |
Shell Island Sublease – We have a sublease arrangement with MHI Hotels Services on its expired leasehold interests in the Shell Island Resort in Wrightsville Beach, North Carolina. Leasehold revenue was $87,500 for each of the three month periods ended March 31, 2014 and 2013. The underlying leases at Shell Island expired on December 31, 2011. | |
Strategic Alliance Agreement – On December 21, 2004, we entered into a ten-year strategic alliance agreement with MHI Hotels Services that provides in part for the referral of acquisition opportunities to us and the management of our hotels by MHI Hotels Services. | |
Management Agreements – Each of the operating hotels that we wholly-owned at March 31, 2014 and December 31, 2013, except for the Crowne Plaza Tampa Westshore, the Crowne Plaza Houston Downtown and the Georgian Terrace, are operated by MHI Hotels Services under a master management agreement that expires between December 2014 and April 2018. We entered into separate management agreements with MHI Hotels Services for the management of the Crowne Plaza Tampa Westshore that expires in March 2019 and for the management of the Georgian Terrace that expires in March 2024. We assumed an existing management agreement for the Crowne Plaza Houston Downtown when we acquired the property in November 2013, which expires in April 2016. Pursuant to the sale of the Holiday Inn Downtown in Williamsburg, Virginia, one of the hotels initially contributed to the Company and the Operating Partnership upon their formation, MHI Hotels Services has agreed that the property in Jeffersonville, Indiana shall be substituted for the Williamsburg property under the master management agreement. | |
Under the master management agreement as well as the management agreement for the Crowne Plaza Tampa Westshore, MHI Hotels Services receives a base management fee. The base management fee for any hotel is 2.0% of gross revenues for the first full fiscal year and partial fiscal year from the commencement date through December 31 of that year, 2.5% of gross revenues the second full fiscal year, and 3.0% of gross revenues for every year thereafter. Under the management agreements for the Crowne Plaza Houston and the Georgian Terrace, MHI Hotels Services receives a base management fee of 2.0% of gross revenues. | |
The incentive management fee under the master management agreement is due annually in arrears within 90 days of the end of the fiscal year and will be equal to 10.0% of the amount by which the gross operating profit of the hotels, on an aggregate basis, for a given year exceeds the gross operating profit for the same hotels, on an aggregate basis, for the prior year. The incentive management fee may not exceed 0.25% of gross revenues of all of the hotels included in the incentive fee calculation. The management agreements for the Crowne Plaza Tampa Westshore and the Georgian Terrace include a similar provision for the payment of an incentive management fee on a stand-alone basis. | |
The management agreement for the Georgian Terrace also provides for an administrative fee of $30,000 per year for as long as the adjacent parking garage is managed by a third party. | |
Base management and administrative fees earned by MHI Hotels Services totaled $687,562 and $600,615 for the three months ended March 31, 2014 and 2013, respectively. In addition, estimated incentive management fees of $7,272 and $34,594 were accrued for the three months ended March 31, 2014 and 2013, respectively. | |
Employee Medical Benefits – We purchase employee medical benefits through Maryland Hospitality, Inc. (d/b/a MHI Health), an affiliate of MHI Hotels Services, for our employees, as well as those employees that are employed by MHI Hotels Services that work exclusively for our hotel properties. Gross premiums for employee medical benefits paid by the Company (before offset of employee co-payments) were $814,801 and $650,999 for the three months ended March 31, 2014 and 2013, respectively. | |
Redemption of Units in Operating Partnership. During 2013, 2012 and 2011, the Company redeemed a total of 24,600 units in the Operating Partnership held by a trust controlled by two current members and one former member of the Company’s board of directors for a total of $76,230 pursuant to the terms of the Partnership Agreement. | |
Issuance of Units in Operating Partnership. In connection with the acquisition of the Crowne Plaza Houston Downtown Hotel in November 2013, we purchased from MHI Hotels its 1.0% limited partnership interest in HHA, the entity that owns the property, in exchange for 32,929 units of limited partnership interests in the Company’s operating partnership valued at $153,636 pursuant to an exchange agreement entered into between the Operating Partnership and MHI Hotels. The indirect equity owners of MHI Hotels include the Company’s chief executive officer, Andrew M. Sims, and a member of the Company’s board of directors, Kim E. Sims. | |
Holders of the Preferred Stock and Essex Warrant. As set forth in the Articles Supplementary, the holders of Preferred Stock, Essex Illiquid, LLC and Richmond Hill Capital Partners, LLC, were entitled to elect one (1) member of the Company’s board of directors. The member of the board of directors elected by the holders of Preferred Stock holds executive positions in Essex Equity Capital Management, LLC, an affiliate of Essex Illiquid, LLC, as well as Richmond Hill Capital Partners, LLC. | |
On March 26, 2013, we used the net proceeds of an expansion of the mortgage on the DoubleTree by Hilton Brownstone-University to make a special distribution by the Operating Partnership to the Company to redeem 1,902 shares of Preferred Stock for an aggregate redemption price of approximately $2.1 million plus the payment of related accrued and unpaid cash and stock dividends. The redemption resulted in a prepayment fee of approximately $0.2 million. | |
On August 1, 2013, we used the net proceeds of a new mortgage on the DoubleTree by Hilton Brownstone-University to make a special distribution by the Operating Partnership to the Company to redeem 2,460 shares of Preferred Stock for an aggregate redemption price of approximately $2.7 million plus the payment of related accrued and unpaid cash and stock dividends. The redemption resulted in a prepayment fee of approximately $0.2 million. | |
On September 30, 2013, we used a portion of the proceeds of the Notes offering to make a special distribution by the Operating Partnership to the Company to redeem the remaining outstanding shares of Preferred Stock for an aggregate redemption price of approximately $10.7 million plus the payment of related accrued and unpaid cash and stock dividends. The redemption resulted in a prepayment fee of approximately $0.7 million. | |
Essex Warrant Redemptions. On October 23, 2013, the Company entered into an agreement to redeem the First Tranche of Redeemed Warrant Shares for an aggregate cash redemption price of $3.2 million. The First Tranche of Redeemed Warrant Shares are no longer Issuable Warrant Shares under the Essex Warrant, and all exercise and other rights of the Initial Holders in respect of the Redeemed Warrant Shares under the Essex Warrant were terminated and extinguished. | |
On December 23, 2013, the Company entered into an agreement to redeem the Final Tranche of Redeemed Warrant Shares for an aggregate cash redemption price of approximately $4.0 million. The Final Tranche of Redeemed Warrant Shares are no longer Issuable Warrant Shares under the Essex Warrant, and all exercise and other rights of the Initial Holders in respect of the Redeemed Warrant Shares under the Essex Warrant were terminated and extinguished. | |
Bridge Lenders. A former member of the Company’s board of directors holds executive positions in Essex Equity Capital Management, LLC, an affiliate of Essex Equity joint Investment Vehicle, LLC as well as Richmond Hill Capital Partners, LP. On March 26, 2014, we entered into a Note Agreement, Guaranty, and Pledge Agreement to secure a $19.0 million secured Bridge Loan with the Richmond Hill Capital Partners, LP and Essex Equity Joint Investment Vehicle, LLC. The Bridge Loan has a maturity date of March 26, 2015; carries a fixed interest rate of 10.0% per annum; is subject to a prepayment premium if the loan is prepaid in full or in part prior to March 26, 2015; requires mandatory prepayment upon certain events; contains limited financial covenants; and is secured by a lien on 100% of the limited partnership interests in the subsidiary that owns the Hilton Philadelphia Airport hotel. | |
Others. In June 2013, we hired Ashley S. Kirkland, the daughter of our Chief Executive Officer as a legal analyst and Robert E. Kirkland IV, her husband, as our compliance officer. Compensation for the three months ended March 31, 2014 totaled $32,330 for both individuals. |
Retirement_Plan
Retirement Plan | 3 Months Ended |
Mar. 31, 2014 | |
Compensation And Retirement Disclosure [Abstract] | ' |
Retirement Plan | ' |
10. Retirement Plan | |
We maintain a 401(k) plan for qualified employees which is subject to “safe harbor” provisions and which requires that we match 100.0% of the first 3.0% of employee contributions and 50.0% of the next 2.0% of employee contributions. All employer matching funds vest immediately in accordance with the “safe harbor” provision. Contributions to the plan totaled $10,087 and $13,593 for the three months ended March 31, 2014 and 2013, respectively. |
Unconsolidated_Joint_Venture
Unconsolidated Joint Venture | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Equity Method Investments And Joint Ventures [Abstract] | ' | ||||||||
Unconsolidated Joint Venture | ' | ||||||||
11. Unconsolidated Joint Venture | |||||||||
We own a 25.0% indirect interest in (i) the entity that owns the Crowne Plaza Hollywood Beach Resort and (ii) the entity that leases the hotel and has engaged MHI Hotels Services to operate the hotel under a management contract. Carlyle owns a 75.0% indirect controlling interest in all these entities. The joint venture purchased the property on August 8, 2007 and began operations on September 18, 2007. Summarized financial information for this investment, which is accounted for under the equity method, is as follows: | |||||||||
March 31, 2014 | December 31, 2013 | ||||||||
ASSETS | |||||||||
Investment in hotel property, net | $ | 63,905,234 | $ | 64,449,892 | |||||
Cash and cash equivalents | 2,047,195 | 2,896,841 | |||||||
Restricted cash | 475,839 | — | |||||||
Accounts receivable, net | 250,811 | 251,587 | |||||||
Prepaid expenses, inventory and other assets | 1,590,675 | 1,335,472 | |||||||
TOTAL ASSETS | $ | 68,269,754 | $ | 68,933,792 | |||||
LIABILITIES | |||||||||
Mortgage loan, net | $ | 57,000,000 | $ | 57,000,000 | |||||
Accounts payable and other accrued liabilities | 2,222,134 | 1,869,476 | |||||||
Advance deposits | 713,441 | 280,339 | |||||||
TOTAL LIABILITIES | 59,935,575 | 59,149,815 | |||||||
TOTAL MEMBERS’ EQUITY | 8,334,179 | 9,783,977 | |||||||
TOTAL LIABILITIES AND MEMBERS’ EQUITY | $ | 68,269,754 | $ | 68,933,792 | |||||
Three Months Ended | Three Months Ended | ||||||||
March 31, 2014 | March 31, 2013 | ||||||||
Revenue | |||||||||
Rooms department | $ | 5,207,846 | $ | 5,135,187 | |||||
Food and beverage department | 878,212 | 751,772 | |||||||
Other operating departments | 343,246 | 401,224 | |||||||
Total revenue | 6,429,304 | 6,288,183 | |||||||
Expenses | |||||||||
Hotel operating expenses | |||||||||
Rooms department | 867,823 | 866,163 | |||||||
Food and beverage department | 632,017 | 538,076 | |||||||
Other operating departments | 162,567 | 140,745 | |||||||
Indirect | 1,879,085 | 1,963,395 | |||||||
Total hotel operating expenses | 3,541,492 | 3,508,379 | |||||||
Depreciation and amortization | 554,736 | 540,405 | |||||||
General and administrative | 136,711 | 37,461 | |||||||
Total operating expenses | 4,232,939 | 4,086,245 | |||||||
Operating income | 2,196,365 | 2,201,938 | |||||||
Interest expense | (646,163 | ) | (432,274 | ) | |||||
Unrealized gain on hedging activities | — | 109,294 | |||||||
Net income | $ | 1,550,202 | $ | 1,878,958 | |||||
Indirect_Hotel_Operating_Expen
Indirect Hotel Operating Expenses | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Other Income And Expenses [Abstract] | ' | ||||||||
Indirect Hotel Operating Expenses | ' | ||||||||
12. Indirect Hotel Operating Expenses | |||||||||
Indirect hotel operating expenses consists of the following expenses incurred by the hotels: | |||||||||
Three months ended | Three months ended | ||||||||
March 31, 2014 | March 31, 2013 | ||||||||
(unaudited) | (unaudited) | ||||||||
General and administrative | $ | 2,020,998 | $ | 1,655,194 | |||||
Sales and marketing | 2,091,222 | 1,737,032 | |||||||
Repairs and maintenance | 1,328,515 | 1,091,909 | |||||||
Utilities | 1,201,014 | 988,034 | |||||||
Franchise fees | 884,305 | 693,405 | |||||||
Management fees, including incentive | 694,834 | 635,208 | |||||||
Insurance | 469,190 | 361,301 | |||||||
Property taxes | 741,345 | 597,329 | |||||||
Other | 52,450 | 55,649 | |||||||
Total indirect hotel operating expenses | $ | 9,483,873 | $ | 7,815,061 | |||||
Income_Taxes
Income Taxes | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Income Taxes | ' | ||||||||
13. Income Taxes | |||||||||
The components of the income tax provision for the three months ended March 31, 2014 and 2013 are as follows: | |||||||||
Three months ended | Three months ended | ||||||||
March 31, 2014 | March 31, 2013 | ||||||||
(unaudited) | (unaudited) | ||||||||
Current: | |||||||||
Federal | $ | — | $ | 33,101 | |||||
State | 23,000 | 813 | |||||||
23,000 | 33,914 | ||||||||
Deferred: | |||||||||
Federal | (732,189 | ) | 125,786 | ||||||
State | (26,130 | ) | 103,355 | ||||||
(758,319 | ) | 229,141 | |||||||
$ | (735,319 | ) | $ | 263,055 | |||||
A reconciliation of the statutory federal income tax (benefit) provision to the Company’s income tax provision is as follows: | |||||||||
Three months ended | Three months ended | ||||||||
March 31, 2014 | March 31, 2013 | ||||||||
(unaudited) | (unaudited) | ||||||||
Statutory federal income tax expense (benefit) | $ | 90,778 | $ | (1,051,522 | ) | ||||
Effect of non-taxable REIT (income) loss | (822,967 | ) | 1,210,409 | ||||||
State income tax (benefit) provision | (3,130 | ) | 104,168 | ||||||
$ | (735,319 | ) | $ | 263,055 | |||||
As of March 31, 2014 and December 31, 2013, we had a net deferred tax asset of approximately $1.9 million and $1.2 million, respectively, of which, approximately $1.4 million and $0.7 million, respectively, are due to accumulated net operating losses. These loss carryforwards will begin to expire in 2028 if not utilized by such time. As of each March 31, 2014 and December 31, 2013, approximately $0.3 million of the net deferred tax asset is attributable to our share of start-up expenses related to the Crowne Plaza Hollywood Beach Resort, start-up expenses related to the opening of the Sheraton Louisville Riverside and the Crowne Plaza Tampa Westshore that were not deductible in the year incurred, but are being amortized over 15 years. The remainder of the net deferred tax asset is attributable to year-to-year timing differences including accrued, but not deductible, employee performance awards, vacation and sick pay, bad debt allowance and depreciation. We believe that it is more likely than not that the deferred tax asset will be realized and that no valuation allowance is required. |
Income_Loss_Per_Share_and_Per_
Income (Loss) Per Share and Per Unit | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Income (Loss) Per Share and Per Unit | ' | ||||||||
14. Income (Loss) Per Share and Per Unit | |||||||||
Income (Loss) per Share. The limited partners’ outstanding limited partnership units in the Operating Partnership (which may be redeemed for common stock upon notice from the limited partners and following our election to redeem the units for stock rather than cash) have been excluded from the diluted earnings per share calculation as there would be no effect on the amounts since the limited partners’ share of income would also be added back to net income (loss). The computation of basic and diluted earnings per share is presented below. | |||||||||
Three months ended | Three months ended | ||||||||
March 31, 2014 | March 31, 2013 | ||||||||
(unaudited) | (unaudited) | ||||||||
Numerator | |||||||||
Net income (loss) attributable to the Company for basic and dilutive computation | $ | 783,002 | $ | (2,594,916 | ) | ||||
Denominator | |||||||||
Weighted average number of common shares outstanding | 10,225,710 | 10,080,375 | |||||||
Basic and diluted net income (loss) per share | $ | 0.08 | $ | (0.26 | ) | ||||
Income (Loss) Per Unit – The computation of basic and diluted loss per unit is presented below. | |||||||||
Three months ended | Three months ended | ||||||||
March 31, 2014 | March 31, 2013 | ||||||||
(unaudited) | (unaudited) | ||||||||
Numerator | |||||||||
Net income (loss) | $ | 1,002,314 | $ | (3,355,766 | ) | ||||
Denominator | |||||||||
Weighted average number of units outstanding | 13,089,837 | 13,035,992 | |||||||
Basic and diluted net income (loss) per unit | $ | 0.08 | $ | (0.26 | ) | ||||
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
15. Subsequent Events | |
On April 1, 2014, two holders of units in the Operating Partnership redeemed a total of 110,000 units for an equivalent number of shares of the Company’s common stock. | |
On April 11, 2014, we paid a quarterly dividend (distribution) of $0.045 per common share (and unit) to those stockholders (and unitholders of the Operating Partnership) of record on March 14, 2014. | |
On April 21, 2014, we authorized payment of a quarterly dividend (distribution) of $0.050 per common share (and unit) to the stockholders (and unitholders of the Operating Partnership) of record as of June 13, 2014. The dividend (distribution) is to be paid on July 11, 2014. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Basis of Presentation | ' | ||||||||||||
Basis of Presentation – The consolidated financial statements of the Company presented herein include all of the accounts of Sotherly Hotels Inc., the Operating Partnership, MHI TRS and subsidiaries. All significant inter-company balances and transactions have been eliminated. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. | |||||||||||||
The consolidated financial statements of the Operating Partnership presented herein include all of the accounts of Sotherly Hotels LP, MHI TRS and subsidiaries. All significant inter-company balances and transactions have been eliminated. Additionally, all administrative expenses of the Company and those expenditures made by the Company on behalf of the Operating Partnership are reflected as the administrative expenses, expenditures and obligations thereto of the Operating Partnership, pursuant to the terms of the Partnership Agreement. | |||||||||||||
Investment in Hotel Properties | ' | ||||||||||||
Investment in Hotel Properties – Investments in hotel properties include investments in operating properties which are recorded at acquisition cost and allocated to land, property and equipment and identifiable intangible assets. 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 our accounts and any resulting gain or loss is included in the statements of operations. Expenditures under a renovation project, which constitute additions or improvements that extend the life of the property, are capitalized. | |||||||||||||
Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally 7 to 39 years for buildings and building improvements and 3 to 10 years for furniture, fixtures and equipment. Leasehold improvements are amortized over the shorter of the lease term or the useful lives of the related assets. | |||||||||||||
We review our investments in hotel properties for impairment whenever events or changes in circumstances indicate that the carrying value of the hotel properties may not be recoverable. Events or circumstances that may cause a review include, but are not limited to, adverse changes in the demand for lodging at the properties due to declining national or local economic conditions and/or new hotel construction in markets where the hotels are located. When such conditions exist, management performs an analysis to determine if the estimated undiscounted future cash flows from operations and the proceeds from the ultimate disposition of a hotel property exceed its carrying value. If the estimated undiscounted future cash flows are found to be less than the carrying amount of the asset, an adjustment to reduce the carrying amount to the related hotel property’s estimated fair market value would be recorded and an impairment loss recognized. | |||||||||||||
Investment in Joint Venture | ' | ||||||||||||
Investment in Joint Venture – Investment in joint venture represents our noncontrolling indirect 25.0% equity interest in (i) the entity that owns the Crowne Plaza Hollywood Beach Resort and (ii) the entity that leases the hotel and has engaged MHI Hotels Services to operate the hotel under a management contract. Carlyle owns a 75.0% controlling indirect interest in these entities. We account for our investment in the joint venture under the equity method of accounting and are entitled to receive our pro rata share of operating cash flow. We also have the opportunity to earn an incentive participation in the net sale proceeds based upon the achievement of certain overall investment returns, in addition to our pro rata share of net sale proceeds. | |||||||||||||
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. | |||||||||||||
Concentration of Credit Risk | ' | ||||||||||||
Concentration of Credit Risk – We hold cash accounts at several institutions in excess of the Federal Deposit Insurance Corporation (the “FDIC”) protection limits of $250,000. Our exposure to credit loss in the event of the failure of these institutions is represented by the difference between the FDIC protection limit and the total amounts on deposit. Management monitors, on a regular basis, the financial condition of the financial institutions along with the balances there on deposit to minimize our potential risk. | |||||||||||||
Restricted Cash | ' | ||||||||||||
Restricted Cash – Restricted cash includes real estate tax escrows, insurance escrows and reserves for replacements of furniture, fixtures and equipment pursuant to certain requirements in our various mortgage agreements. | |||||||||||||
Accounts Receivable | ' | ||||||||||||
Accounts Receivable – Accounts receivable consists primarily of hotel guest and banqueting receivables. Ongoing evaluations of collectability are performed and an allowance for potential credit losses is provided against the portion of accounts receivable that is estimated to be uncollectible. | |||||||||||||
Inventories | ' | ||||||||||||
Inventories – Inventories, consisting primarily of food and beverages, are stated at the lower of cost or market, with cost determined on a method that approximates first-in, first-out basis. | |||||||||||||
Franchise License Fees | ' | ||||||||||||
Franchise License Fees – Fees expended to obtain or renew a franchise license are amortized over the life of the license or renewal. The un-amortized franchise fees as of March 31, 2014 and December 31, 2013 were $261,114 and $196,989, respectively. Amortization expense for the three month period ended March 31, 2014 and 2013, each totaled $10,875, respectively. | |||||||||||||
Deferred Financing Costs | ' | ||||||||||||
Deferred Financing Costs – Deferred financing costs are recorded at cost and consist of loan fees and other costs incurred in issuing debt. Amortization of deferred financing costs is computed using a method that approximates the effective interest method over the term of the related debt and is included in interest expense in the consolidated statements of operations. | |||||||||||||
Derivative Instruments | ' | ||||||||||||
Derivative Instruments – Our derivative instruments are reflected as assets or liabilities on the balance sheet and measured at fair value. Derivative instruments used to hedge the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as an interest rate risk, are considered fair value hedges. Derivative instruments used to hedge exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. For a derivative instrument designated as a cash flow hedge, the change in fair value each period is reported in accumulated other comprehensive income in stockholders’ equity and partners’ capital to the extent the hedge is effective. For a derivative instrument designated as a fair value hedge, the change in fair value each period is reported in earnings along with the change in fair value of the hedged item attributable to the risk being hedged. For a derivative instrument that does not qualify for hedge accounting or is not designated as a hedge, the change in fair value each period is reported in earnings. | |||||||||||||
We use derivative instruments to add stability to interest expense and to manage our exposure to interest-rate movements. To accomplish this objective, we primarily used an interest-rate swap, which was required under the then-existing credit agreement and acted as a cash flow hedge involving the receipts of variable-rate amounts from a counterparty in exchange for us making fixed-rate payments without exchange of the underlying principal amount. We valued the interest-rate swap at fair value, which we define as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). We also use derivative instruments in the Company’s stock to obtain more favorable terms on our financing. We do not enter into contracts to purchase or sell derivative instruments for speculative trading purposes. | |||||||||||||
Fair Value Measurements | ' | ||||||||||||
Fair Value Measurements – | |||||||||||||
We classify the inputs used to measure fair value into the following hierarchy: | |||||||||||||
Level 1 | Unadjusted quoted prices in active markets for identical assets or liabilities. | ||||||||||||
Level 2 | Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. | ||||||||||||
Level 3 | Unobservable inputs for the asset or liability. | ||||||||||||
We endeavor to utilize the best available information in measuring fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following table represents our debt instruments measured at fair value and the basis for that measurement: | |||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||
December 31, 2013 | |||||||||||||
Unsecured notes(1) | $ | (28,770,240 | ) | $ | — | $ | — | ||||||
31-Mar-14 | |||||||||||||
Unsecured notes(1) | $ | (28,814,400 | ) | $ | — | $ | — | ||||||
-1 | Unsecured notes are recorded at historical cost on our Consolidated Balance Sheet as of March 31, 2014 and December 31, 2013. | ||||||||||||
Noncontrolling Interest in Operating Partnership | ' | ||||||||||||
Noncontrolling Interest in Operating Partnership – Certain hotel properties have been acquired, in part, by the Operating Partnership through the issuance of limited partnership units of the Operating Partnership. The noncontrolling interest in the Operating Partnership is: (i) increased or decreased by the limited partners’ pro-rata share of the Operating Partnership’s net income or net loss, respectively; (ii) decreased by distributions; (iii) decreased by redemption of partnership units for the Company’s common stock; and (iv) adjusted to equal the net equity of the Operating Partnership multiplied by the limited partners’ ownership percentage immediately after each issuance of units of the Operating Partnership and/or the Company’s common stock through an adjustment to additional paid-in capital. Net income or net loss is allocated to the noncontrolling interest in the Operating Partnership based on the weighted average percentage ownership throughout the period. | |||||||||||||
Revenue Recognition | ' | ||||||||||||
Revenue Recognition – Revenues from operations of the hotels are recognized when the services are provided. Revenues consist of room sales, food and beverage sales, and other hotel department revenues, such as telephone, parking, gift shop sales and rentals from restaurant tenants, rooftop leases and gift shop operators. Revenues are reported net of occupancy and other taxes collected from customers and remitted to governmental authorities. | |||||||||||||
Income Taxes | ' | ||||||||||||
Income Taxes – The Company has elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended. As a REIT, the Company generally will not be subject to federal income tax. MHI TRS, our wholly owned taxable REIT subsidiary which leases our hotels from subsidiaries of the Operating Partnership, is subject to federal and state income taxes. | |||||||||||||
We account for income taxes using the asset and liability method under which deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. As of March 31, 2014, we had no uncertain tax positions. Our policy is to recognize interest and penalties related to uncertain tax positions in income tax expense. As of March 31, 2014, the tax years that remain subject to examination by the major tax jurisdictions to which the Company is subject generally include the calendar years 2010 through 2013. In addition, as of March 31, 2014, the tax years that remain subject to examination by the major tax jurisdictions to which MHI TRS is subject generally include the calendar years 2004 through 2009. | |||||||||||||
The Operating Partnership is generally not subject to federal and state income taxes as the unit holders of the Partnership are subject to tax on their respective shares of the Partnership’s taxable income. | |||||||||||||
Stock-Based Compensation | ' | ||||||||||||
Stock-based Compensation – The Company’s 2004 Long Term Incentive Plan (the “2004 Plan”) and its 2013 Long-Term Incentive Plan (the “2013 Plan”), which the Company’s stockholders approved in April 2013, permit the grant of stock options, restricted stock and performance share compensation awards to its employees for up to 350,000 and 750,000 shares of common stock, respectively. The Company believes that such awards better align the interests of its employees with those of its stockholders. | |||||||||||||
Under the 2004 Plan, the Company has made restricted stock and deferred stock awards totaling 337,438 shares including 255,938 shares issued to certain executives and employees and 81,500 restricted shares issued to its independent directors. Of the 255,938 shares issued to certain of our executives and employees, all have vested except for 24,000 shares which were issued to the Chief Financial Officer upon execution of his employment contract. These shares are to vest pro rata on each of the next four anniversaries of the effective date of his employment agreement. All of the 81,500 restricted shares issued to the Company’s independent directors have vested. | |||||||||||||
Under the 2013 Plan, the Company has made issuances totaling 36,750 shares, consisting of 24,000 non-restricted shares issued to certain executives and 12,000 restricted shares and 750 non-restricted shares issued to its independent directors. All of the restricted shares will vest at the end of 2014. | |||||||||||||
The value of the awards is charged to compensation expense on a straight-line basis over the vesting or service period based on the Company’s stock price on the date of grant or issuance. Previously, under the 2004 Plan, and currently, under the 2013 Plan, the Company may issue a variety of performance-based stock awards, including nonqualified stock options. As of March 31, 2014, no performance-based stock awards have been granted. Consequently, stock-based compensation as determined under the fair-value method would be the same under the intrinsic-value method. Total compensation cost recognized under the 2004 Plan and 2013 Plan for the three months ended March 31, 2014 and 2013 was $19,571 and $21,958, respectively. | |||||||||||||
Comprehensive Income (Loss) | ' | ||||||||||||
Comprehensive Income (Loss) – Comprehensive income (loss) includes all changes in equity (net assets) during a period from non-owner sources. We do not have any items of comprehensive income (loss) other than net income (loss). | |||||||||||||
Segment Information | ' | ||||||||||||
Segment Information – We have determined that our business is conducted in one reportable segment: hotel ownership. | |||||||||||||
Use of Estimates | ' | ||||||||||||
Use of Estimates – The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America 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. | |||||||||||||
Reclassifications | ' | ||||||||||||
Reclassifications – Certain reclassifications have been made to the prior period balances to conform to the current period presentation. | |||||||||||||
New Accounting Pronouncements | ' | ||||||||||||
New Accounting Pronouncements – There are no recent accounting pronouncements which we believe will have a material impact on our consolidated financial statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Derivative Instruments Measured at Fair Value | ' | ||||||||||||
The following table represents our debt instruments measured at fair value and the basis for that measurement: | |||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||
December 31, 2013 | |||||||||||||
Unsecured notes(1) | $ | (28,770,240 | ) | $ | — | $ | — | ||||||
31-Mar-14 | |||||||||||||
Unsecured notes(1) | $ | (28,814,400 | ) | $ | — | $ | — | ||||||
-1 | Unsecured notes are recorded at historical cost on our Consolidated Balance Sheet as of March 31, 2014 and December 31, 2013. |
Acquisition_of_Hotel_Propertie1
Acquisition of Hotel Properties (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Allocation of Purchase Price Based on Fair Values | ' | ||||||||
The preliminary allocation of the purchase price based on fair values is as follows: | |||||||||
Georgian Terrace | |||||||||
Land and land improvements | $ | 10,127,687 | |||||||
Buildings and improvements | 45,385,939 | ||||||||
Furniture, fixtures and equipment | 5,163,135 | ||||||||
Investment in hotel properties | 60,676,761 | ||||||||
Restricted cash | 124,658 | ||||||||
Accounts receivable | 465,287 | ||||||||
Prepaid expenses, inventory and other assets | 430,997 | ||||||||
Accounts payable and accrued liabilities | (591,618 | ) | |||||||
Net cash | $ | 61,106,085 | |||||||
Pro Forma Results Prepared for Comparative Purposes | ' | ||||||||
The pro forma results have been prepared for comparative purposes only and do not purport to be indicative of the results of operations which would have actually occurred had the transaction taken place on January 1, 2013, or of future results of operations: | |||||||||
Three months ended | |||||||||
March 31, 2014 | March 31, 2013 | ||||||||
(unaudited) | (unaudited) | ||||||||
Pro forma revenues | $ | 29,781,052 | $ | 28,456,030 | |||||
Pro forma operating expenses | 26,644,824 | 26,150,225 | |||||||
Pro forma operating income | 3,136,228 | 2,305,805 | |||||||
Pro forma net income (loss) | 268,146 | (3,302,747 | ) | ||||||
Pro forma earnings (loss) per basic and diluted share and unit | 0.03 | (0.33 | ) | ||||||
Pro forma basic and diluted common shares | 10,225,710 | 10,080,375 |
Investment_in_Hotel_Properties1
Investment in Hotel Properties (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Real Estate [Abstract] | ' | ||||||||
Schedule of Hotel Properties | ' | ||||||||
Investment in hotel properties as of March 31, 2014 and December 31, 2013 consisted of the following: | |||||||||
March 31, 2014 | December 31, 2013 | ||||||||
(unaudited) | |||||||||
Land and land improvements | $ | 37,083,998 | $ | 26,956,311 | |||||
Buildings and improvements | 252,101,033 | 206,101,663 | |||||||
Furniture, fixtures and equipment | 35,321,580 | 29,829,908 | |||||||
324,506,611 | 262,887,882 | ||||||||
Less: accumulated depreciation and impairment | (62,301,934 | ) | (60,242,249 | ) | |||||
$ | 262,204,677 | $ | 202,645,633 | ||||||
Debt_Tables
Debt (Tables) | 3 Months Ended | ||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||||||||
Schedule of Mortgage Debt Obligations on Hotels | ' | ||||||||||||||||||||||
The following table sets forth our mortgage debt obligations on our hotels. | |||||||||||||||||||||||
Balance Outstanding as of | Prepayment | Maturity | Amortization | Interest Rate | |||||||||||||||||||
Property | March 31, | December 31, | Penalties | Date | Provisions | ||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Crowne Plaza Hampton Marina | $ | 5,855,500 | $ | 5,903,500 | None | 6/30/14 | (1) | $ | 16,000 | (2) | LIBOR plus 4.55 | %(3) | |||||||||||
Crowne Plaza Houston Downtown | 21,308,666 | 21,428,258 | Yes(4) | 4/12/16 | (5) | 25 years | 4.5 | % | |||||||||||||||
Crowne Plaza Jacksonville Riverfront | 13,656,527 | 13,756,209 | None | 7/10/15 | (6) | 25 years | LIBOR plus 3.00 | % | |||||||||||||||
Crowne Plaza Tampa Westshore | 13,530,331 | 13,602,701 | None | 6/18/17 | 25 years | 5.6 | % | ||||||||||||||||
DoubleTree by Hilton Brownstone – University | 15,465,974 | 15,525,626 | -7 | 8/1/18 | 30 years | 4.78 | % | ||||||||||||||||
Georgian Terrace | 41,500,000 | — | Yes(8) | 3/27/17 | (14) | 25 years | LIBOR plus 3.75 | %(13) | |||||||||||||||
Hilton Philadelphia Airport | 34,130,509 | 28,731,151 | None | 4/1/19 | 25 years | LIBOR plus 3.00 | %(9) | ||||||||||||||||
Hilton Savannah DeSoto | 21,465,771 | 21,546,423 | Yes(10) | 8/1/17 | 25 years | 6.06 | % | ||||||||||||||||
Hilton Wilmington Riverside | 20,789,664 | 20,919,030 | Yes(10) | 4/1/17 | 25 years | 6.21 | % | ||||||||||||||||
Holiday Inn Laurel West | 7,099,558 | 7,141,845 | Yes(11) | 8/5/21 | 25 years | 5.25 | %(12) | ||||||||||||||||
Sheraton Louisville Riverside | 11,751,564 | 11,808,806 | -7 | 1/6/17 | 25 years | 6.24 | % | ||||||||||||||||
Total | $ | 206,554,064 | $ | 160,363,549 | |||||||||||||||||||
-1 | The note provides that the mortgage can be extended until June 2015 if certain conditions have been satisfied. | ||||||||||||||||||||||
-2 | The Operating Partnership is required to make monthly principal payments of $16,000. | ||||||||||||||||||||||
-3 | The note bears a minimum interest rate of 5.00%. | ||||||||||||||||||||||
-4 | The note may not be prepaid during the first two years of the term. | ||||||||||||||||||||||
-5 | The note provides that the mortgage can be extended until November 2018 if certain conditions have been satisfied. | ||||||||||||||||||||||
-6 | The note provides that the mortgage can be extended until July 2016 if certain conditions have been satisfied. | ||||||||||||||||||||||
-7 | With limited exception, the note may not be prepaid until two months before maturity. | ||||||||||||||||||||||
-8 | The note is subject to a prepayment penalty if the loan is prepaid in full or in part prior to March 26, 2015. | ||||||||||||||||||||||
-9 | The note bears a minimum interest rate of 3.50%. | ||||||||||||||||||||||
-10 | The notes may not be prepaid during the first six years of the terms. Prepayment can be made with penalty thereafter until 90 days before maturity. | ||||||||||||||||||||||
-11 | Pre-payment can be made with penalty until 180 days before the fifth anniversary of the commencement date of the loan or from such date until 180 days before the maturity. | ||||||||||||||||||||||
-12 | The note provides that after five years, the rate of interest will adjust to a rate of 3.00% per annum plus the then-current five-year U.S. Treasury rate of interest, with a floor of 5.25%. | ||||||||||||||||||||||
-13 | The note bears a minimum interest rate of 4.00%. | ||||||||||||||||||||||
-14 | The note provides that the mortgage can be extended through the fourth and fifth anniversary of the commencement date of the loan, or March 27, 2018 and March 27, 2019, respectively, subject to certain conditions. | ||||||||||||||||||||||
Schedule of Future Mortgage Debt Maturities | ' | ||||||||||||||||||||||
Total future mortgage debt maturities, without respect to any extension of loan maturity, as of March 31, 2014 were as follows: | |||||||||||||||||||||||
The remaining nine month period ending December 31, 2014 | $ | 8,671,252 | |||||||||||||||||||||
December 31, 2015 | 17,441,142 | ||||||||||||||||||||||
December 31, 2016 | 24,401,632 | ||||||||||||||||||||||
December 31, 2017 | 104,801,938 | ||||||||||||||||||||||
December 31, 2018 | 15,850,414 | ||||||||||||||||||||||
December 31, 2019 and thereafter | 35,387,686 | ||||||||||||||||||||||
Total future maturities | $ | 206,554,064 | |||||||||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Schedule of Minimum Future Lease Payments | ' | ||||
A schedule of minimum future lease payments for the following twelve-month periods is as follows: | |||||
The remaining nine month period ending December 31, 2014 | $ | 312,155 | |||
December 31, 2015 | 361,081 | ||||
December 31, 2016 | 324,723 | ||||
December 31, 2017 | 196,436 | ||||
December 31, 2018 | 158,721 | ||||
December 31, 2019 and thereafter | 732,092 | ||||
Total | $ | 2,085,208 | |||
Unconsolidated_Joint_Venture_T
Unconsolidated Joint Venture (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Equity Method Investments And Joint Ventures [Abstract] | ' | ||||||||
Summarized Financial Information of Investment | ' | ||||||||
Summarized financial information for this investment, which is accounted for under the equity method, is as follows: | |||||||||
March 31, 2014 | December 31, 2013 | ||||||||
ASSETS | |||||||||
Investment in hotel property, net | $ | 63,905,234 | $ | 64,449,892 | |||||
Cash and cash equivalents | 2,047,195 | 2,896,841 | |||||||
Restricted cash | 475,839 | — | |||||||
Accounts receivable, net | 250,811 | 251,587 | |||||||
Prepaid expenses, inventory and other assets | 1,590,675 | 1,335,472 | |||||||
TOTAL ASSETS | $ | 68,269,754 | $ | 68,933,792 | |||||
LIABILITIES | |||||||||
Mortgage loan, net | $ | 57,000,000 | $ | 57,000,000 | |||||
Accounts payable and other accrued liabilities | 2,222,134 | 1,869,476 | |||||||
Advance deposits | 713,441 | 280,339 | |||||||
TOTAL LIABILITIES | 59,935,575 | 59,149,815 | |||||||
TOTAL MEMBERS’ EQUITY | 8,334,179 | 9,783,977 | |||||||
TOTAL LIABILITIES AND MEMBERS’ EQUITY | $ | 68,269,754 | $ | 68,933,792 | |||||
Three Months Ended | Three Months Ended | ||||||||
March 31, 2014 | March 31, 2013 | ||||||||
Revenue | |||||||||
Rooms department | $ | 5,207,846 | $ | 5,135,187 | |||||
Food and beverage department | 878,212 | 751,772 | |||||||
Other operating departments | 343,246 | 401,224 | |||||||
Total revenue | 6,429,304 | 6,288,183 | |||||||
Expenses | |||||||||
Hotel operating expenses | |||||||||
Rooms department | 867,823 | 866,163 | |||||||
Food and beverage department | 632,017 | 538,076 | |||||||
Other operating departments | 162,567 | 140,745 | |||||||
Indirect | 1,879,085 | 1,963,395 | |||||||
Total hotel operating expenses | 3,541,492 | 3,508,379 | |||||||
Depreciation and amortization | 554,736 | 540,405 | |||||||
General and administrative | 136,711 | 37,461 | |||||||
Total operating expenses | 4,232,939 | 4,086,245 | |||||||
Operating income | 2,196,365 | 2,201,938 | |||||||
Interest expense | (646,163 | ) | (432,274 | ) | |||||
Unrealized gain on hedging activities | — | 109,294 | |||||||
Net income | $ | 1,550,202 | $ | 1,878,958 | |||||
Indirect_Hotel_Operating_Expen1
Indirect Hotel Operating Expenses (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Other Income And Expenses [Abstract] | ' | ||||||||
Summary of Indirect Hotel Operating Expenses | ' | ||||||||
Indirect hotel operating expenses consists of the following expenses incurred by the hotels: | |||||||||
Three months ended | Three months ended | ||||||||
March 31, 2014 | March 31, 2013 | ||||||||
(unaudited) | (unaudited) | ||||||||
General and administrative | $ | 2,020,998 | $ | 1,655,194 | |||||
Sales and marketing | 2,091,222 | 1,737,032 | |||||||
Repairs and maintenance | 1,328,515 | 1,091,909 | |||||||
Utilities | 1,201,014 | 988,034 | |||||||
Franchise fees | 884,305 | 693,405 | |||||||
Management fees, including incentive | 694,834 | 635,208 | |||||||
Insurance | 469,190 | 361,301 | |||||||
Property taxes | 741,345 | 597,329 | |||||||
Other | 52,450 | 55,649 | |||||||
Total indirect hotel operating expenses | $ | 9,483,873 | $ | 7,815,061 | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Income Taxes Provision | ' | ||||||||
The components of the income tax provision for the three months ended March 31, 2014 and 2013 are as follows: | |||||||||
Three months ended | Three months ended | ||||||||
March 31, 2014 | March 31, 2013 | ||||||||
(unaudited) | (unaudited) | ||||||||
Current: | |||||||||
Federal | $ | — | $ | 33,101 | |||||
State | 23,000 | 813 | |||||||
23,000 | 33,914 | ||||||||
Deferred: | |||||||||
Federal | (732,189 | ) | 125,786 | ||||||
State | (26,130 | ) | 103,355 | ||||||
(758,319 | ) | 229,141 | |||||||
$ | (735,319 | ) | $ | 263,055 | |||||
Reconciliation of Statutory Federal Income Tax Provision (Benefit) | ' | ||||||||
A reconciliation of the statutory federal income tax (benefit) provision to the Company’s income tax provision is as follows: | |||||||||
Three months ended | Three months ended | ||||||||
March 31, 2014 | March 31, 2013 | ||||||||
(unaudited) | (unaudited) | ||||||||
Statutory federal income tax expense (benefit) | $ | 90,778 | $ | (1,051,522 | ) | ||||
Effect of non-taxable REIT (income) loss | (822,967 | ) | 1,210,409 | ||||||
State income tax (benefit) provision | (3,130 | ) | 104,168 | ||||||
$ | (735,319 | ) | $ | 263,055 | |||||
Income_Loss_Per_Share_and_Per_1
Income (Loss) Per Share and Per Unit (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Computation of Basic and Diluted Earnings Per Share | ' | ||||||||
The computation of basic and diluted earnings per share is presented below. | |||||||||
Three months ended | Three months ended | ||||||||
March 31, 2014 | March 31, 2013 | ||||||||
(unaudited) | (unaudited) | ||||||||
Numerator | |||||||||
Net income (loss) attributable to the Company for basic and dilutive computation | $ | 783,002 | $ | (2,594,916 | ) | ||||
Denominator | |||||||||
Weighted average number of common shares outstanding | 10,225,710 | 10,080,375 | |||||||
Basic and diluted net income (loss) per share | $ | 0.08 | $ | (0.26 | ) | ||||
Computation of Basic and Diluted Earnings Per Unit | ' | ||||||||
The computation of basic and diluted loss per unit is presented below. | |||||||||
Three months ended | Three months ended | ||||||||
March 31, 2014 | March 31, 2013 | ||||||||
(unaudited) | (unaudited) | ||||||||
Numerator | |||||||||
Net income (loss) | $ | 1,002,314 | $ | (3,355,766 | ) | ||||
Denominator | |||||||||
Weighted average number of units outstanding | 13,089,837 | 13,035,992 | |||||||
Basic and diluted net income (loss) per unit | $ | 0.08 | $ | (0.26 | ) | ||||
Organization_and_Description_o1
Organization and Description of Business - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 3 Months Ended | 0 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 0 Months Ended | 3 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | |||||||||||||||||||||||||
Dec. 27, 2013 | Dec. 23, 2013 | Oct. 23, 2013 | Sep. 30, 2013 | Aug. 01, 2013 | Apr. 02, 2013 | Mar. 26, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Nov. 13, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Oct. 23, 2013 | Mar. 31, 2014 | Apr. 18, 2011 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Sep. 30, 2013 | Nov. 13, 2013 | Mar. 27, 2014 | Sep. 30, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 23, 2013 | Oct. 23, 2013 | Mar. 31, 2014 | Sep. 30, 2013 | Mar. 22, 2013 | Mar. 26, 2013 | Mar. 22, 2013 | Jun. 28, 2013 | Aug. 01, 2013 | Mar. 31, 2014 | Aug. 01, 2013 | Mar. 31, 2014 | Mar. 26, 2014 | Mar. 27, 2014 | Mar. 31, 2014 | |
Hotel | Crowne Plaza Hollywood [Member] | Operating Partnership [Member] | Essex Warrant [Member] | Essex Warrant [Member] | Essex Warrant [Member] | Mortgage [Member] | Mortgage [Member] | Senior Unsecured Notes [Member] | Senior Unsecured Notes [Member] | Crowne Plaza Houston [Member] | Georgian Terrace [Member] | Sotherly Hotels LP [Member] | Sotherly Hotels LP [Member] | Sotherly Hotels LP [Member] | Sotherly Hotels LP [Member] | Sotherly Hotels LP [Member] | Sotherly Hotels LP [Member] | Sotherly Hotels LP [Member] | Hilton Brownstone-University Hotel [Member] | Hilton Brownstone-University Hotel [Member] | Hilton Brownstone-University Hotel [Member] | Towne Bank [Member] | CIBC [Member] | CIBC [Member] | CIBC [Member] | Richmond Hill Capital Partners Lp [Member] | Richmond Hill Capital Partners Lp [Member] | Bank Of Ozarks [Member] | TD Bank [Member] | ||||||||||
ParkingSpaces | Essex Warrant [Member] | Essex Warrant [Member] | Senior Unsecured Notes [Member] | Senior Unsecured Notes [Member] | Mortgage [Member] | Series A Cumulative Redeemable Preferred Stock [Member] | Bridge Loan [Member] | Bridge Loan [Member] | First Mortgage Loans [Member] | Hilton Philadelphia Airport Hotel [Member] | |||||||||||||||||||||||||||||
acre | |||||||||||||||||||||||||||||||||||||||
Room | |||||||||||||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Date of incorporation | ' | ' | ' | ' | ' | ' | ' | 20-Aug-04 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Date of commencement of business | ' | ' | ' | ' | ' | ' | ' | 21-Dec-04 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of hotels acquired before commencement of business | ' | ' | ' | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of noncontrolling interest holding in Crowne Plaza Hollywood Beach Resort | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage owned by the Company of the Operating Partnership | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 78.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of mortgage loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $27,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10,000,000 | ' | $8,000,000 | ' | $15,600,000 | ' | ' | ' | ' | ' | $30,000,000 |
Interest rate if mortgage loan is extended | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest floor rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.50% |
Mortgage bears interest rate after 5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Extension in loan agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preference stock, shares agreed for redemption | ' | ' | ' | ' | 2,460 | ' | 1,902 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | 900,000 | ' | ' | ' | 1,902 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preference share, aggregate redemption price | ' | ' | ' | 10,700,000 | 2,700,000 | ' | 2,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,700,000 | ' | ' | 4,000,000 | 3,200,000 | ' | ' | ' | 2,100,000 | ' | ' | ' | ' | 2,700,000 | ' | ' | ' | ' |
Principal payment of loan under extension agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000 | ' | ' | ' | ' | ' | ' | ' |
Reduced principal balance of loan under extension agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,000,000 | ' | ' | ' | ' | ' | ' | ' |
Principal payment on extended maturity agreement - monthly | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,000 | ' | ' | ' | ' | ' | ' | ' |
Additional interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.55% | ' | ' | ' | ' | ' | 3.75% | 3.00% |
Minimum rate of interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' |
Extended maturity date of mortgage loan | ' | ' | ' | ' | ' | ' | ' | 30-Jun-15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Extended maturity date of mortgage loan | ' | ' | ' | ' | ' | ' | ' | 30-Jun-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate on amount borrowed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' | ' | 4.78% | ' | ' | ' | ' | ' | ' |
Amortization schedule for level payments of principal and interest on a monthly basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 years | ' | ' | ' | ' | ' | ' |
Debt instrument maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30-Sep-18 | ' | ' | ' | ' | ' | ' | ' | ' | 30-Sep-18 | ' | ' | ' | ' | ' | ' | 1-Aug-18 | ' | 26-Mar-15 | ' | 27-Mar-17 | 1-Apr-19 |
Loan proceeds were placed into a restricted reserve | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 700,000 | ' | ' | ' | ' | ' | ' |
Proceeds of the mortgage used to redeem Preferred Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,460 | ' | ' | ' | ' |
Prepayment fee | ' | ' | ' | 700,000 | 200,000 | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' |
Operating Partnership aggregate amount of unsecured senior notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of issuable warrant shares redeemed | ' | 1,000,000 | 900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares to be sold under warrant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,900,000 | ' | 1,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate cash redemption price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of issuable warrant unit redeemed | ' | 1,000,000 | 900,000 | ' | ' | 10,000 | ' | 0 | ' | ' | ' | ' | 900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage ownership by the Operating Partnership in the acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquired property value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,900,000 | 61,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of units | ' | ' | ' | ' | ' | 0 | ' | ' | ' | 32,929 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of remaining issuable warrant shares redeemed | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate purchase price for remaining portion | ' | 4,000,000 | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non recourse mortgage | 57,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of distribution proceeds to pay existing loans | 3,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreement taken to secured loan | ' | ' | ' | ' | ' | ' | ' | 206,554,064 | 160,363,549 | ' | ' | ' | ' | ' | ' | 206,554,064 | 160,363,549 | ' | ' | ' | ' | ' | 206,554,064 | 160,363,549 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,000,000 | ' | ' |
Interest on loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' |
Rooms in hotel | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 326 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 61,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Parking space | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 698 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Development parcel | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage from Bank of the Ozarks | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 41,500,000 | ' |
Restricted cash reserve | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' |
Floating rate of interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.00% | ' |
Amortization schedule | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '25 years | '25 years |
Period subject to certain terms and conditions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' |
Additional mortgage loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5,600,000 |
Duration of franchise agreement | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreement date | ' | ' | ' | ' | ' | ' | ' | '2014-11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Segment | |||
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Federal Deposit Insurance Corporation protection limits | $250,000 | ' | ' |
Un-amortized franchise fees | 261,114 | ' | 196,989 |
Amortization expense | 10,875 | 10,875 | ' |
Shares issued under plan | 337,438 | ' | ' |
Compensation cost recognized | 230,625 | 161,500 | ' |
Number of reportable segment | 1 | ' | ' |
Director [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Shares issued under plan | 81,500 | ' | ' |
Executives and Employee [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Shares issued under plan | 255,938 | ' | ' |
Vesting period of employment contract | '4 years | ' | ' |
Chief Financial Officer [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Shares issued to the Vice President and General Counsel | 24,000 | ' | ' |
2004 Plan [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Performance-based stock awards granted | 0 | ' | ' |
Compensation cost recognized | 19,571 | 21,958 | ' |
2013 Plan [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Shares issued under plan | 36,750 | ' | ' |
Performance-based stock awards granted | 0 | ' | ' |
Compensation cost recognized | $19,571 | $21,958 | ' |
2013 Plan [Member] | Executive Officer [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Shares issued under plan | 24,000 | ' | ' |
2013 Plan [Member] | Independent Director [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Shares issued under plan | 750 | ' | ' |
2013 Plan [Member] | Restricted Stock [Member] | Independent Director [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Shares issued under plan | 12,000 | ' | ' |
Crowne Plaza Hollywood [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Percentage of Operating Partnership owned | 25.00% | ' | ' |
Carlyle [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Percentage of indirect controlling interest owned by Carlyle | 75.00% | ' | ' |
Minimum [Member] | Buildings and Improvements [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives of the assets | '7 years | ' | ' |
Minimum [Member] | Furniture, Fixtures and Equipment [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives of the assets | '3 years | ' | ' |
Maximum [Member] | 2004 Plan [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Restricted and performance stock awards permitted to grant to employees | 350,000 | ' | ' |
Maximum [Member] | 2013 Plan [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Restricted and performance stock awards permitted to grant to employees | 750,000 | ' | ' |
Maximum [Member] | Buildings and Improvements [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives of the assets | '39 years | ' | ' |
Maximum [Member] | Furniture, Fixtures and Equipment [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives of the assets | '10 years | ' | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Derivative Instruments Measured at Fair Value (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 |
Level 1 [Member] | Level 1 [Member] | Level 2 [Member] | Level 2 [Member] | Level 3 [Member] | Level 3 [Member] | |
Warrants [Member] | Unsecured Notes [Member] | Warrants [Member] | Unsecured Notes [Member] | Warrants [Member] | Unsecured Notes [Member] | |
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' |
Derivative instruments measured at fair value | ($28,814,400) | ($28,770,240) | ' | ' | ' | ' |
Acquisition_of_Hotel_Propertie2
Acquisition of Hotel Properties - Additional Information (Detail) (USD $) | 0 Months Ended | |
Mar. 31, 2014 | Mar. 27, 2014 | |
Georgian Terrace [Member] | ||
Schedule Of Summary Of Acquisitions Of Properties [Line Items] | ' | ' |
Acquired property value | ' | $61,100,000 |
Total revenue from acquisitions | 333,000 | ' |
Net loss from acquisitions | $172,000 | ' |
Acquisition_of_Hotel_Propertie3
Acquisition of Hotel Properties - Allocation of Purchase Price Based on Fair Values (Detail) (Georgian Terrace [Member], USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Georgian Terrace [Member] | ' |
Schedule Of Summary Of Acquisitions Of Properties [Line Items] | ' |
Land and land improvements | $10,127,687 |
Buildings and improvements | 45,385,939 |
Furniture, fixtures and equipment | 5,163,135 |
Investment in hotel properties | 60,676,761 |
Restricted cash | 124,658 |
Accounts receivable | 465,287 |
Prepaid expenses, inventory and other assets | 430,997 |
Accounts payable and accrued liabilities | -591,618 |
Net cash | $61,106,085 |
Acquisition_of_Hotel_Propertie4
Acquisition of Hotel Properties - Pro Forma Results Prepared for Comparative Purposes (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Business Combinations [Abstract] | ' | ' |
Pro forma revenues | $29,781,052 | $28,456,030 |
Pro forma operating expenses | 26,644,824 | 26,150,225 |
Pro forma operating income | 3,136,228 | 2,305,805 |
Pro forma net income (loss) | $268,146 | ($3,302,747) |
Pro forma earnings (loss) per basic and diluted share and unit | $0.03 | ($0.33) |
Pro forma basic and diluted common shares | 10,225,710 | 10,080,375 |
Investment_in_Hotel_Properties2
Investment in Hotel Properties - Schedule of Hotel Properties (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ' | ' |
Total Gross | $324,506,611 | $262,887,882 |
Less: accumulated depreciation and impairment | -62,301,934 | -60,242,249 |
Total Net | 262,204,677 | 202,645,633 |
Land and Land Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total Gross | 37,083,998 | 26,956,311 |
Buildings and Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total Gross | 252,101,033 | 206,101,663 |
Furniture, Fixtures and Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total Gross | $35,321,580 | $29,829,908 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 26, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Senior Unsecured Notes [Member] | Senior Unsecured Notes [Member] | Bridge Financing [Member] | Bridge Financing [Member] | Bridge Financing [Member] | ||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Mortgage loan outstanding balance | $206.60 | $160.40 | ' | ' | ' | ' | ' |
Company issued senior unsecured notes | ' | ' | 8.00% | ' | ' | ' | ' |
Borrowed amount | ' | ' | 27.6 | ' | ' | ' | ' |
Debt instrument maturity date | ' | ' | ' | 30-Sep-18 | 26-Mar-15 | ' | ' |
Notes face value | ' | ' | 101.00% | ' | ' | ' | ' |
Secured Bridge Loan | ' | ' | ' | ' | ' | 19 | ' |
Interest rate on loan | ' | ' | ' | ' | 10.00% | ' | ' |
Limited partnership interests in the subsidiary | ' | ' | ' | ' | 100.00% | ' | ' |
Outstanding balance on the Bridge Financing | ' | ' | ' | ' | $19 | ' | $0 |
Debt_Schedule_of_Mortgage_Debt
Debt - Schedule of Mortgage Debt Obligations on Hotels (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | ' | ' |
Mortgage loans | $206,554,064 | $160,363,549 |
Mortgage [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Mortgage loans | 206,554,064 | 160,363,549 |
Crowne Plaza Hampton Marina [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Amortization Provisions | 16,000 | ' |
Crowne Plaza Hampton Marina [Member] | Mortgage [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Mortgage loans | 5,855,500 | 5,903,500 |
Prepayment Penalties | 'None | ' |
Maturity Date | 30-Jun-14 | ' |
Amortization Provisions | 16,000 | ' |
Excess Interest rate over LIBOR on mortgage debt | 4.55% | ' |
Crowne Plaza Houston Downtown [Member] | Mortgage [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Mortgage loans | 21,308,666 | 21,428,258 |
Prepayment Penalties | 'Yes | ' |
Maturity Date | 12-Apr-16 | ' |
Amortization schedule for level payments of principal and interest | '25 years | ' |
Interest rate applicable to the mortgage loan | 4.50% | ' |
Crowne Plaza Jacksonville Riverfront [Member] | Mortgage [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Mortgage loans | 13,656,527 | 13,756,209 |
Prepayment Penalties | 'None | ' |
Maturity Date | 10-Jul-15 | ' |
Amortization schedule for level payments of principal and interest | '25 years | ' |
Excess Interest rate over LIBOR on mortgage debt | 3.00% | ' |
Double Tree by Hilton Brownstone University [Member] | Mortgage [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Mortgage loans | 15,465,974 | 15,525,626 |
Maturity Date | 1-Aug-18 | ' |
Amortization schedule for level payments of principal and interest | '30 years | ' |
Interest rate applicable to the mortgage loan | 4.78% | ' |
Sheraton Louisville Riverside [Member] | Mortgage [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Mortgage loans | 11,751,564 | 11,808,806 |
Maturity Date | 6-Jan-17 | ' |
Amortization schedule for level payments of principal and interest | '25 years | ' |
Interest rate applicable to the mortgage loan | 6.24% | ' |
Hilton Philadelphia Airport [Member] | Mortgage [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Mortgage loans | 34,130,509 | 28,731,151 |
Prepayment Penalties | 'None | ' |
Maturity Date | 1-Apr-19 | ' |
Amortization schedule for level payments of principal and interest | '25 years | ' |
Excess Interest rate over LIBOR on mortgage debt | 3.00% | ' |
Hilton Savannah DeSoto [Member] | Mortgage [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Mortgage loans | 21,465,771 | 21,546,423 |
Prepayment Penalties | 'Yes | ' |
Maturity Date | 1-Aug-17 | ' |
Amortization schedule for level payments of principal and interest | '25 years | ' |
Interest rate applicable to the mortgage loan | 6.06% | ' |
Hilton Wilmington Riverside [Member] | Mortgage [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Mortgage loans | 20,789,664 | 20,919,030 |
Prepayment Penalties | 'Yes | ' |
Maturity Date | 1-Apr-17 | ' |
Amortization schedule for level payments of principal and interest | '25 years | ' |
Interest rate applicable to the mortgage loan | 6.21% | ' |
Holiday Inn Laurel West [Member] | Mortgage [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Mortgage loans | 7,099,558 | 7,141,845 |
Prepayment Penalties | 'Yes | ' |
Maturity Date | 5-Aug-21 | ' |
Amortization schedule for level payments of principal and interest | '25 years | ' |
Interest rate applicable to the mortgage loan | 5.25% | ' |
Georgian Terrace [Member] | Mortgage [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Mortgage loans | 41,500,000 | ' |
Prepayment Penalties | 'Yes | ' |
Maturity Date | 27-Mar-17 | ' |
Amortization schedule for level payments of principal and interest | '25 years | ' |
Excess Interest rate over LIBOR on mortgage debt | 3.75% | ' |
Crowne Plaza Tampa Westshore [Member] | Mortgage [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Mortgage loans | $13,530,331 | $13,602,701 |
Prepayment Penalties | 'None | ' |
Maturity Date | 18-Jun-17 | ' |
Amortization schedule for level payments of principal and interest | '25 years | ' |
Interest rate applicable to the mortgage loan | 5.60% | ' |
Debt_Schedule_of_Mortgage_Debt1
Debt - Schedule of Mortgage Debt Obligations on Hotels (Parenthetical) (Detail) (USD $) | 3 Months Ended | |||||||||
Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2020 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
Crowne Plaza Hampton Marina [Member] | Crowne Plaza Houston Downtown [Member] | Crowne Plaza Jacksonville Riverfront [Member] | Double Tree by Hilton Brownstone University [Member] | Sheraton Louisville Riverside [Member] | Hilton Philadelphia Airport [Member] | Hilton Savannah DeSoto [Member] | Hilton Wilmington Riverside [Member] | Holiday Inn Laurel West [Member] | Georgian Terrace [Member] | |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Extended maturity date | 30-Jun-15 | 30-Nov-18 | 31-Jul-16 | ' | ' | ' | ' | ' | ' | ' |
Debt instrument periodic payment | $16,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | 5.00% | ' | ' | ' | ' | 3.50% | ' | ' | ' | 4.00% |
Period in which prepayment not allowed | ' | '2 years | ' | ' | ' | ' | '6 years | '6 years | ' | ' |
Number of months for prepayment before maturity | ' | ' | ' | '2 months | '2 months | ' | ' | ' | ' | ' |
Duration of loan prepaid | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26-Mar-15 |
Penalty Prepayment | ' | ' | ' | ' | '90 days | ' | ' | ' | '90 days | ' |
Number of days before maturity date that loan can be prepaid with penalty | ' | ' | ' | ' | ' | ' | ' | ' | '180 days | ' |
Number of days for penalty before original maturity | ' | ' | ' | ' | ' | ' | ' | ' | '180 days | ' |
Interest rate | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' |
Treasury floor rate of interest | ' | ' | ' | ' | ' | ' | ' | ' | 5.25% | ' |
Debt_Schedule_of_Future_Mortga
Debt - Schedule of Future Mortgage Debt Maturities (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Debt Disclosure [Abstract] | ' | ' |
The remaining nine month period ending December 31, 2014 | $8,671,252 | ' |
31-Dec-15 | 17,441,142 | ' |
31-Dec-16 | 24,401,632 | ' |
31-Dec-17 | 104,801,938 | ' |
31-Dec-18 | 15,850,414 | ' |
December 31, 2019 and thereafter | 35,387,686 | ' |
Total future maturities | $206,554,064 | $160,363,549 |
Preferred_Stock_Preferred_Inte1
Preferred Stock, Preferred Interest and Warrants - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||||||||||
Dec. 23, 2013 | Oct. 23, 2013 | Sep. 30, 2013 | Aug. 01, 2013 | Apr. 02, 2013 | Mar. 26, 2013 | Apr. 18, 2011 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Apr. 18, 2011 | Oct. 23, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Apr. 18, 2011 | Mar. 31, 2014 | Dec. 23, 2013 | Oct. 23, 2013 | Apr. 18, 2011 | |
Sotherly Hotels LP [Member] | Sotherly Hotels LP [Member] | Sotherly Hotels LP [Member] | Series A Cumulative Redeemable Preferred Stock [Member] | Series A Cumulative Redeemable Preferred Stock [Member] | Series A Cumulative Redeemable Preferred Stock [Member] | Essex Warrant [Member] | Essex Warrant [Member] | Essex Warrant [Member] | Essex Warrant [Member] | Essex Warrant [Member] | Essex Warrant [Member] | Essex Warrant [Member] | Warrants [Member] | ||||||||||
Maximum [Member] | Sotherly Hotels LP [Member] | Sotherly Hotels LP [Member] | Sotherly Hotels LP [Member] | ||||||||||||||||||||
Preferred Units [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross proceeds from securities purchase agreement | ' | ' | ' | ' | ' | ' | $25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares issued | ' | ' | ' | ' | ' | ' | 25,000 | 0 | 0 | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrant purchase common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,900,000 | ' | ' | 1,900,000 | 1,900,000 | ' | ' | 1,900,000 |
Preferred stock, par value | ' | ' | ' | ' | ' | ' | $0.01 | $0.01 | $0.01 | ' | ' | ' | ' | ' | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock pursuant to Articles Supplementary | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27,650 | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock liquidation preference pursuant to Articles Supplementary | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock cash dividend of liquidation preference | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock dividend of liquidation preference on additional shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Preference stock, shares agreed for redemption | ' | ' | ' | 2,460 | ' | 1,902 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | 900,000 | ' |
Preference share, aggregate redemption price | ' | ' | 10,700,000 | 2,700,000 | ' | 2,100,000 | ' | ' | ' | 10,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | 3,200,000 | ' |
Prepayment fee | ' | ' | 700,000 | 200,000 | ' | 200,000 | ' | ' | ' | 700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of issuance costs | ' | ' | 400,000 | 100,000 | ' | 100,000 | ' | ' | ' | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares outstanding | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption value of the preferred interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.25 | 2.25 | ' | ' | ' | ' | ' |
Aggregate cash redemption price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,200,000 | ' | ' | ' | ' | ' | ' | ' |
Number of issuable warrant unit redeemed | 1,000,000 | 900,000 | ' | ' | 10,000 | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | 900,000 | ' | ' | ' | ' | ' | ' | ' |
Number of issuable warrant shares redeemed | 1,000,000 | 900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 900,000 | ' | ' | ' | ' | ' | ' | ' |
Aggregate cash redemption price | 4,000,000 | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | 4,000,000 | ' | ' |
Fair value of Warrant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,600,000 | ' | ' | ' | ' | ' |
Risk-free interest rate, fair value assumptions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.26% | ' | ' | ' | ' | ' |
Dividend yield, fair value assumptions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' |
Expected volatility, fair value assumptions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60.00% | ' | ' | ' | ' | ' |
Expected term, fair value assumptions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years 6 months | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
sqft | ||
Operating Leased Assets [Line Items] | ' | ' |
Original lump sum rent payment received | $990 | ' |
Rental income recognized under lease term | 0 | ' |
Annual payment for second year | 361,081 | ' |
Minimum [Member] | ' | ' |
Operating Leased Assets [Line Items] | ' | ' |
Operating lease, expiring date | 31-Dec-14 | ' |
Franchise fees of room revenues | 2.50% | ' |
Additional fees of room revenues | 2.50% | ' |
Franchise agreement expiry date | 'October 2014 | ' |
Maximum [Member] | ' | ' |
Operating Leased Assets [Line Items] | ' | ' |
Operating lease, expiring date | 30-Apr-18 | ' |
Franchise fees of room revenues | 5.00% | ' |
Additional fees of room revenues | 6.00% | ' |
Franchise agreement expiry date | 'April 2023 | ' |
Maryland [Member] | ' | ' |
Operating Leased Assets [Line Items] | ' | ' |
Area of commercial space leased | 1,632 | ' |
Operating lease, expiring date | 28-Feb-17 | ' |
Rent expense | 12,253 | 11,108 |
Annual payment for first year | 22,848 | ' |
Annual payment for second year | 45,696 | ' |
Percentage increment | 2.75% | ' |
Expiry date of additional agreement | 'March 2019 | ' |
Williamsburg Virginia [Member] | ' | ' |
Operating Leased Assets [Line Items] | ' | ' |
Area of commercial space leased | 4,836 | ' |
Rent expense | 17,015 | 13,750 |
Lease renewable expiration date | 31-Aug-18 | ' |
Furniture and Equipment [Member] | Minimum [Member] | ' | ' |
Operating Leased Assets [Line Items] | ' | ' |
Financing arrangement expiration date | 28-Feb-14 | ' |
Furniture and Equipment [Member] | Maximum [Member] | ' | ' |
Operating Leased Assets [Line Items] | ' | ' |
Financing arrangement expiration date | 31-Mar-17 | ' |
Crowne Plaza Houston Downtown [Member] | ' | ' |
Operating Leased Assets [Line Items] | ' | ' |
Expiry date of additional agreement | 'April 2016 | ' |
Monthly contribution of room revenues | 4.00% | ' |
Georgian Terrace [Member] | ' | ' |
Operating Leased Assets [Line Items] | ' | ' |
Expiry date of additional agreement | 'March 2024 | ' |
Hilton Wilmington Riverside and Hilton Savannah Desoto [Member] | ' | ' |
Operating Leased Assets [Line Items] | ' | ' |
Restricted cash reserve | 'Amount equal to 1/12 of the annual real estate taxes due for the properties | ' |
Hilton Savannah DeSoto [Member] | ' | ' |
Operating Leased Assets [Line Items] | ' | ' |
Monthly contribution of room revenues | 4.00% | ' |
Annual insurance premium | 0.0833 | ' |
Hilton Wilmington Riverside [Member] | ' | ' |
Operating Leased Assets [Line Items] | ' | ' |
Monthly contribution of room revenues | 4.00% | ' |
Annual insurance premium | 0.0833 | ' |
Hilton Philadelphia Airport [Member] | ' | ' |
Operating Leased Assets [Line Items] | ' | ' |
Monthly contribution of room revenues | 4.00% | ' |
Sheraton Louisville Riverside [Member] | ' | ' |
Operating Leased Assets [Line Items] | ' | ' |
Monthly contribution of room revenues | 4.00% | ' |
Double Tree by Hilton Brownstone University [Member] | ' | ' |
Operating Leased Assets [Line Items] | ' | ' |
Duration of operating lease term | '50 years | ' |
Operating lease, expiring date | 31-Aug-16 | ' |
Duration period under renewal option second | '10 years | ' |
Expiration date one under renewal option second | 31-Aug-26 | ' |
Expiration date two under renewal option second | 31-Aug-36 | ' |
Expiration date three under renewal option second | 31-Aug-46 | ' |
Rent expense | 23,871 | 23,871 |
Land leased under second amendment dated | 28-Apr-98 | ' |
Land lease originally dated | 25-May-66 | ' |
Purchase of leased land at fair market value subject to annual fee payment | 9,000 | ' |
Monthly contribution of room revenues | 4.00% | ' |
Crowne Plaza Hampton Marina [Member] | ' | ' |
Operating Leased Assets [Line Items] | ' | ' |
Monthly contribution of room revenues | 4.00% | ' |
Crowne Plaza Tampa Westshore [Member] | ' | ' |
Operating Leased Assets [Line Items] | ' | ' |
Operating lease, expiring date | 31-Jul-14 | ' |
Rent expense | 651 | 651 |
Lease agreement | '5 years | ' |
Commencement date of agreement | 31-Jul-09 | ' |
Annual payment | 2,432 | ' |
Additional renewal of agreement | '5 years | ' |
Crowne Plaza Jacksonville Riverfront [Member] | ' | ' |
Operating Leased Assets [Line Items] | ' | ' |
Operating lease, expiring date | 18-Sep-12 | ' |
Rent expense | 1,505 | 1,505 |
Lease agreement | '5 years | ' |
Annual payment | 4,961 | ' |
New operating lease annual payment | 6,020 | ' |
Lease renewable expiration date | 18-Sep-17 | ' |
Savannah Hotel Property [Member] | ' | ' |
Operating Leased Assets [Line Items] | ' | ' |
Area of commercial space leased | 2,086 | ' |
Operating lease, expiring date | 31-Oct-06 | ' |
Duration period under renewal option second | '5 years | ' |
Expiration date one under renewal option second | 31-Oct-11 | ' |
Expiration date two under renewal option second | 31-Oct-16 | ' |
Expiration date three under renewal option second | 31-Oct-21 | ' |
Rent expense | $15,866 | $16,756 |
Savannah Hotel Property [Member] | Ninety Nine Year Operating Lease Property [Member] | ' | ' |
Operating Leased Assets [Line Items] | ' | ' |
Duration of operating lease term | '99 years | ' |
Operating lease, expiring date | 31-Jul-86 | ' |
Savannah Hotel Property [Member] | Six Year Operating Lease Property [Member] | ' | ' |
Operating Leased Assets [Line Items] | ' | ' |
Duration of operating lease term | '6 years | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies - Schedule of Minimum Future Lease Payments (Detail) (USD $) | Mar. 31, 2014 |
Operating Leases Future Minimum Payments Due [Abstract] | ' |
The remaining nine month period ending December 31, 2014 | $312,155 |
31-Dec-15 | 361,081 |
31-Dec-16 | 324,723 |
31-Dec-17 | 196,436 |
31-Dec-18 | 158,721 |
December 31, 2019 and thereafter | 732,092 |
Total | $2,085,208 |
Equity_Additional_Information_
Equity - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||||||||
Dec. 23, 2013 | Oct. 23, 2013 | Apr. 02, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Nov. 13, 2013 | Mar. 31, 2014 | Jan. 02, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Jan. 02, 2013 | Aug. 14, 2014 | Apr. 02, 2013 | Mar. 02, 2013 | Feb. 14, 2014 | Jan. 25, 2013 | Jan. 25, 2013 | Feb. 14, 2014 | Jan. 25, 2013 | Feb. 14, 2014 | |
Series A Cumulative Redeemable Preferred Stock [Member] | Sotherly Hotels LP [Member] | Sotherly Hotels LP [Member] | Sotherly Hotels LP [Member] | Chief Financial Officer [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | |||||||
Sotherly Hotels LP [Member] | Sotherly Hotels LP [Member] | Sotherly Hotels LP [Member] | Executives and Employee [Member] | Director [Member] | Director [Member] | Executive Officer [Member] | ||||||||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares authorized | ' | ' | ' | 1,000,000 | ' | ' | 27,650 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares authorized | ' | ' | ' | 49,000,000 | 49,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, par value | ' | ' | ' | $0.01 | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Voting right | ' | ' | ' | 'Each outstanding share of common stock entitles the holder to one vote on all matters submitted to a vote of stockholders. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of issued unit in Operating Partnership | ' | ' | ' | ' | ' | ' | ' | 30,000 | ' | ' | ' | ' | ' | ' | 36,750 | 45,500 | ' | ' | ' | ' |
Non-restricted shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,500 | 750 | ' | 24,000 |
Restricted shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,000 | ' | ' | ' | ' | ' | ' | 12,000 | 15,000 | ' |
Conversion of units in Operating Partnership to shares of common stock, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | 31,641 | 50,000 | ' | ' | ' | ' | ' | ' |
Common stock, shares outstanding | ' | ' | ' | 10,243,677 | 10,206,927 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock exchange ratio | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of units | ' | ' | 0 | ' | ' | 32,929 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption of units in Operating Partnership | 1,000,000 | 900,000 | 10,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of board of director | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Partnership stock redemption value | ' | ' | $32,900 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Partnership units outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 13,107,804 | 13,071,054 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Partnership units not owned | ' | ' | ' | 2,864,127 | 2,864,127 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair market value | ' | ' | ' | ' | ' | ' | ' | ' | $18,200,000 | $17,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 12 Months Ended | 3 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | ||||||||||||||||||
Dec. 23, 2013 | Oct. 23, 2013 | Apr. 02, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Aug. 01, 2013 | Mar. 26, 2013 | Mar. 31, 2014 | Mar. 26, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Oct. 23, 2013 | Mar. 31, 2014 | Dec. 23, 2013 | Oct. 23, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2014 | Dec. 21, 2004 | Nov. 30, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
Bridge Loan [Member] | Bridge Loan [Member] | Sotherly Hotels LP [Member] | Sotherly Hotels LP [Member] | Sotherly Hotels LP [Member] | Essex Warrant [Member] | Essex Warrant [Member] | Essex Warrant [Member] | Essex Warrant [Member] | Board of Directors [Member] | Board of Directors [Member] | Board of Directors [Member] | Crowne Plaza Houston Downtown [Member] | MHI Hotels Services [Member] | MHI Hotels Services [Member] | MHI Hotels Services [Member] | MHI Hotels Services [Member] | MHI Hotels Services [Member] | MHI Hotels Services [Member] | MHI Hotels Services [Member] | MHI Hotels Services [Member] | |||||||||
Sotherly Hotels LP [Member] | Sotherly Hotels LP [Member] | Members | Crowne Plaza Tampa Westshore [Member] | Crowne Plaza Houston Downtown [Member] | Georgian Terrace [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Company's outstanding common stock owned by members of MHI Hotels Services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.70% | ' | ' | ' | ' | ' |
Operating Partnership units owned by members of MHI Hotels Services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,752,958 | ' | ' | ' | ' | ' |
Due from MHI Hotels Services | ' | ' | ' | $77,692 | $101,439 | ' | ' | ' | ' | ' | $77,692 | $101,439 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $77,692 | $101,439 | ' | ' | ' | ' |
Leasehold revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 87,500 | 87,500 | ' | ' | ' | ' |
Expiry date of leasehold interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31-Dec-11 | ' | ' | ' | ' | ' |
Strategic alliance agreement term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' |
Expiry date of master management agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Between December 2014 and April 2018 | 'Between December 2014 and April 2018 | ' | ' | ' | ' |
Additional agreement, expiry date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'April 2016 | ' | ' | ' | ' | ' | 'March 2019 | 'April 2016 | ' |
Acquisition date of property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30-Nov-13 |
Expiry date of management agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'March 2024 |
Management fee of gross revenues for first full fiscal year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' |
Management fee of gross revenues for second full fiscal year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.50% | ' | ' | ' | ' | ' |
Management fee of gross revenues for every year thereafter | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' | ' | ' | ' |
Management fee of gross revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' |
Period of incentive management fee due within end of the fiscal year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '90 days | ' | ' | ' | ' | ' |
Incentive management of increase in gross operating profit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' |
Maximum incentive management fee of gross revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.25% | ' | ' | ' | ' | ' |
Administrative fee per year | ' | ' | ' | 30,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Base management fees earned by related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 687,562 | ' | 600,615 | ' | ' | ' |
Incentive management fees earned by related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,272 | ' | 34,594 | ' | ' | ' |
Employee medical benefits paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 814,801 | ' | 650,999 | ' | ' | ' |
Redemption of units in Operating Partnership | 1,000,000 | 900,000 | 10,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 900,000 | ' | ' | ' | 24,600 | 24,600 | 24,600 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of members controlled by related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of former members controlled by related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Partnership stock redemption value | ' | ' | 32,900 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 76,230 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Limited partnership interest purchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' |
Limited partnership interest purchased, unit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32,929 | ' | ' | ' | ' | ' | ' |
Operating Partnership valued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 153,636 | ' | ' | ' | ' | ' | ' |
Preference stock, shares agreed for redemption | ' | ' | ' | ' | ' | ' | 2,460 | 1,902 | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | 900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preference share, aggregate redemption price | ' | ' | ' | ' | ' | 10,700,000 | 2,700,000 | 2,100,000 | ' | ' | ' | ' | 10,700,000 | ' | ' | 4,000,000 | 3,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepayment fee pursuant to the provisions of the articles supplementary | ' | ' | ' | ' | ' | 700,000 | 200,000 | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate cash redemption price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate cash redemption price | 4,000,000 | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Secured Bridge Loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity date of secured Bridge Loan | ' | ' | ' | ' | ' | ' | ' | ' | 26-Mar-15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate of secured Bridge Loan | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Limited partnership interests in the subsidiary | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total compensation for related parties | ' | ' | ' | $32,330 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Retirement_Plan_Additional_Inf
Retirement Plan - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Compensation And Retirement Disclosure [Abstract] | ' | ' |
Employer contribution for first 3% of employee contributions | 100.00% | ' |
Employer contribution for next 2% of employee contributions | 50.00% | ' |
Percentage of first specified employee contributions | 3.00% | ' |
Percentage of next specified employee contributions | 2.00% | ' |
Contribution for retirement plan | $10,087 | $13,593 |
Unconsolidated_Joint_Venture_A
Unconsolidated Joint Venture - Additional Information (Detail) | Mar. 31, 2014 |
acre | |
Schedule of Equity Method Investments [Line Items] | ' |
Option of purchase of land | 3 |
Carlyle [Member] | ' |
Schedule of Equity Method Investments [Line Items] | ' |
Percentage of indirect controlling interest owned by Carlyle | 75.00% |
Crowne Plaza Hollywood [Member] | ' |
Schedule of Equity Method Investments [Line Items] | ' |
Percentage of Operating Partnership owned | 25.00% |
Unconsolidated_Joint_Venture_S
Unconsolidated Joint Venture - Summarized Financial Information of Investment (Detail) (Equity Method Investments [Member], USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Equity Method Investments [Member] | ' | ' |
ASSETS | ' | ' |
Investment in hotel property, net | $63,905,234 | $64,449,892 |
Cash and cash equivalents | 2,047,195 | 2,896,841 |
Restricted cash | 475,839 | ' |
Accounts receivable, net | 250,811 | 251,587 |
Prepaid expenses, inventory and other assets | 1,590,675 | 1,335,472 |
TOTAL ASSETS | 68,269,754 | 68,933,792 |
LIABILITIES | ' | ' |
Mortgage loan, net | 57,000,000 | 57,000,000 |
Accounts payable and other accrued liabilities | 2,222,134 | 1,869,476 |
Advance deposits | 713,441 | 280,339 |
TOTAL LIABILITIES | 59,935,575 | 59,149,815 |
TOTAL MEMBERS' EQUITY | 8,334,179 | 9,783,977 |
TOTAL LIABILITIES AND MEMBERS' EQUITY | 68,269,754 | 68,933,792 |
Revenue | ' | ' |
Rooms department | 5,207,846 | 5,135,187 |
Food and beverage department | 878,212 | 751,772 |
Other operating departments | 343,246 | 401,224 |
Total revenue | 6,429,304 | 6,288,183 |
Hotel operating expenses | ' | ' |
Rooms department | 867,823 | 866,163 |
Food and beverage department | 632,017 | 538,076 |
Other operating departments | 162,567 | 140,745 |
Indirect | 1,879,085 | 1,963,395 |
Total hotel operating expenses | 3,541,492 | 3,508,379 |
Depreciation and amortization | 554,736 | 540,405 |
General and administrative | 136,711 | 37,461 |
Total operating expenses | 4,232,939 | 4,086,245 |
Operating income | 2,196,365 | 2,201,938 |
Interest expense | -646,163 | -432,274 |
Unrealized gain on hedging activities | ' | 109,294 |
Net income | $1,550,202 | $1,878,958 |
Indirect_Hotel_Operating_Expen2
Indirect Hotel Operating Expenses - Summary of Indirect Hotel Operating Expenses (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Component Of Operating Cost And Expense [Line Items] | ' | ' |
Total indirect hotel operating expenses | $9,483,873 | $7,815,061 |
General and Administrative [Member] | ' | ' |
Component Of Operating Cost And Expense [Line Items] | ' | ' |
Total indirect hotel operating expenses | 2,020,998 | 1,655,194 |
Sales and Marketing [Member] | ' | ' |
Component Of Operating Cost And Expense [Line Items] | ' | ' |
Total indirect hotel operating expenses | 2,091,222 | 1,737,032 |
Repairs and Maintenance [Member] | ' | ' |
Component Of Operating Cost And Expense [Line Items] | ' | ' |
Total indirect hotel operating expenses | 1,328,515 | 1,091,909 |
Utilities [Member] | ' | ' |
Component Of Operating Cost And Expense [Line Items] | ' | ' |
Total indirect hotel operating expenses | 1,201,014 | 988,034 |
Franchise Fees [Member] | ' | ' |
Component Of Operating Cost And Expense [Line Items] | ' | ' |
Total indirect hotel operating expenses | 884,305 | 693,405 |
Management Fees, Including Incentive [Member] | ' | ' |
Component Of Operating Cost And Expense [Line Items] | ' | ' |
Total indirect hotel operating expenses | 694,834 | 635,208 |
Insurance [Member] | ' | ' |
Component Of Operating Cost And Expense [Line Items] | ' | ' |
Total indirect hotel operating expenses | 469,190 | 361,301 |
Property Taxes [Member] | ' | ' |
Component Of Operating Cost And Expense [Line Items] | ' | ' |
Total indirect hotel operating expenses | 741,345 | 597,329 |
Other [Member] | ' | ' |
Component Of Operating Cost And Expense [Line Items] | ' | ' |
Total indirect hotel operating expenses | $52,450 | $55,649 |
Income_Taxes_Income_Taxes_Prov
Income Taxes - Income Taxes Provision (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Current: | ' | ' |
Federal | ' | $33,101 |
State | 23,000 | 813 |
Total | 23,000 | 33,914 |
Deferred: | ' | ' |
Federal | -732,189 | 125,786 |
State | -26,130 | 103,355 |
Total | -758,319 | 229,141 |
Income tax (benefit) provision | ($735,319) | $263,055 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Statutory Federal Income Tax Provision (Benefit) (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Income Tax Expense Benefit Continuing Operations Income Tax Reconciliation [Abstract] | ' | ' |
Statutory federal income tax expense (benefit) | $90,778 | ($1,051,522) |
Effect of non-taxable REIT (income) loss | -822,967 | 1,210,409 |
State income tax (benefit) provision | -3,130 | 104,168 |
Income tax (benefit) provision | ($735,319) | $263,055 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' |
Deferred tax asset | $1,921,441 | $1,186,122 |
Accumulated net operating losses | 1,400,000 | 700,000 |
Start up expense related to company | 300,000 | 300,000 |
Amortized period | '15 years | ' |
Loss carryforwards, expired | '2028 | ' |
Valuation allowances | $0 | ' |
Income_Loss_Per_Share_and_Per_2
Income (Loss) Per Share and Per Unit - Computation of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Numerator | ' | ' |
Net income (loss) attributable to the Company for basic and dilutive computation | $783,002 | ($2,594,916) |
Denominator | ' | ' |
Weighted average number of common shares outstanding | 10,225,710 | 10,080,375 |
Basic and diluted net income (loss) per share | $0.08 | ($0.26) |
Income_Loss_Per_Share_and_Per_3
Income (Loss) Per Share and Per Unit - Computation of Basic and Diluted Earnings Per Unit (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Earnings Per Share [Abstract] | ' | ' |
Net income (loss) | $1,002,314 | ($3,355,766) |
Denominator | ' | ' |
Weighted average number of units outstanding | 13,089,837 | 13,035,992 |
Basic and diluted net income (loss) per unit | $0.08 | ($0.26) |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended | ||||
Dec. 23, 2013 | Oct. 23, 2013 | Apr. 02, 2013 | Mar. 31, 2014 | Apr. 21, 2014 | Apr. 11, 2014 | Apr. 01, 2014 | |
Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |||||
Holder | |||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Operating Partnership units redeemed | 1,000,000 | 900,000 | 10,000 | 0 | ' | ' | 110,000 |
Number of unit holders in Operating Partnership | ' | ' | ' | ' | ' | ' | 2 |
Dividend paid | ' | ' | ' | ' | ' | $0.05 | ' |
Dividend record date | ' | ' | ' | ' | 13-Jun-14 | 14-Mar-14 | ' |
Dividend distributed | ' | ' | ' | ' | $0.05 | ' | ' |
Dividend payment date | ' | ' | ' | ' | 11-Jul-14 | ' | ' |