Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Apr. 14, 2015 | Jun. 30, 2014 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SOHO | ||
Entity Registrant Name | Sotherly Hotels Inc. | ||
Entity Central Index Key | 1301236 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 10,707,032 | ||
Entity Public Float | $71,027,018 | ||
Sotherly Hotels LP [Member] | |||
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | SOUTHERLY HOTELS LP | ||
Entity Central Index Key | 1301236 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
ASSETS | ||
Investment in hotel properties, net | $260,192,153 | $202,645,633 |
Investment in joint venture | 1,982,107 | 2,424,737 |
Cash and cash equivalents | 16,634,499 | 9,376,628 |
Restricted cash | 6,621,864 | 3,796,141 |
Accounts receivable, net | 1,908,762 | 1,812,026 |
Accounts receivable-affiliate and joint venture | 197,674 | 209,947 |
Prepaid expenses, inventory and other assets | 3,334,401 | 2,261,303 |
Shell Island sublease, net | 240,196 | |
Deferred income taxes | 3,543,295 | 1,581,632 |
Deferred financing costs, net | 5,405,288 | 3,820,838 |
TOTAL ASSETS | 299,820,043 | 228,169,081 |
LIABILITIES | ||
Mortgage loans | 205,291,657 | 160,363,549 |
Unsecured notes | 52,900,000 | 27,600,000 |
Accounts payable and accrued liabilities | 12,044,886 | 8,095,782 |
Advance deposits | 1,220,729 | 666,758 |
Dividends and distributions payable | 852,914 | 588,197 |
TOTAL LIABILITIES | 272,310,186 | 197,314,286 |
Commitments and contingencies | ||
Sotherly Hotels Inc. stockholders' equity | ||
Preferred stock, par value $0.01, 972,350 shares authorized, 0 shares issued and outstanding | ||
Common stock, par value $0.01, 49,000,000 shares authorized, 10,570,932 shares and 10,206,927 shares issued and outstanding at December 31, 2014 and 2013, respectively | 105,709 | 102,069 |
Additional paid in capital | 58,659,799 | 57,534,113 |
Distributions in excess of retained earnings | -35,388,313 | -32,450,773 |
Total Sotherly Hotels Inc. stockholders' equity | 23,377,195 | 25,185,409 |
Noncontrolling interest | 4,132,662 | 5,669,386 |
TOTAL EQUITY | 27,509,857 | 30,854,795 |
PARTNERS' CAPITAL | ||
TOTAL LIABILITIES AND EQUITY | 299,820,043 | 228,169,081 |
Sotherly Hotels LP [Member] | ||
ASSETS | ||
Investment in hotel properties, net | 260,192,153 | 202,645,633 |
Investment in joint venture | 1,982,107 | 2,424,737 |
Cash and cash equivalents | 16,634,499 | 9,376,628 |
Restricted cash | 6,621,864 | 3,796,141 |
Accounts receivable, net | 1,908,762 | 1,812,026 |
Accounts receivable-affiliate and joint venture | 197,674 | 209,947 |
Prepaid expenses, inventory and other assets | 3,334,401 | 2,261,303 |
Shell Island sublease, net | 240,196 | |
Deferred income taxes | 3,543,295 | 1,581,632 |
Deferred financing costs, net | 5,405,288 | 3,820,838 |
TOTAL ASSETS | 299,820,043 | 228,169,081 |
LIABILITIES | ||
Mortgage loans | 205,291,657 | 160,363,549 |
Unsecured notes | 52,900,000 | 27,600,000 |
Accounts payable and accrued liabilities | 12,044,886 | 8,095,782 |
Advance deposits | 1,220,729 | 666,758 |
Dividends and distributions payable | 852,914 | 588,197 |
TOTAL LIABILITIES | 272,310,186 | 197,314,286 |
Commitments and contingencies | ||
PARTNERS' CAPITAL | ||
General Partner: 131,218 and 130,711 units issued and outstanding as of December 31, 2014 and 2013, respectively | 520,791 | 554,316 |
Limited Partners: 12,990,541 and 12,940,343 units issued and outstanding as of December 31, 2014 and 2013, respectively | 26,989,066 | 30,300,479 |
TOTAL PARTNERS' CAPITAL | 27,509,857 | 30,854,795 |
TOTAL LIABILITIES AND EQUITY | $299,820,043 | $228,169,081 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 972,350 | 972,350 |
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 | 10,570,932 | 10,206,927 |
Common stock, shares outstanding | 10,570,932 | 10,206,927 |
Sotherly Hotels LP [Member] | ||
General Partner, units issued | 131,218 | 130,711 |
General Partner, units outstanding | 131,218 | 130,711 |
Limited Partner, units issued | 12,990,541 | 12,940,343 |
Limited Partner, units outstanding | 12,990,541 | 12,940,343 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
REVENUE | |||
Rooms department | $84,618,889 | $62,837,422 | $60,824,016 |
Food and beverage department | 31,444,984 | 22,054,209 | 21,961,328 |
Other operating departments | 6,876,046 | 4,482,896 | 4,557,876 |
Total revenue | 122,939,919 | 89,374,527 | 87,343,220 |
Hotel operating expenses | |||
Rooms department | 22,913,479 | 17,212,549 | 16,638,574 |
Food and beverage department | 21,026,202 | 14,048,924 | 14,287,874 |
Other operating departments | 1,192,183 | 508,868 | 480,307 |
Indirect | 45,072,491 | 33,757,896 | 33,033,820 |
Total hotel operating expenses | 90,204,355 | 65,528,237 | 64,440,575 |
Depreciation and amortization | 11,969,284 | 8,467,228 | 8,661,769 |
Impairment of investment in hotel properties, net | 3,175,000 | 611,000 | |
Corporate general and administrative | 5,085,949 | 4,360,583 | 4,078,826 |
Total operating expenses | 110,434,588 | 78,967,048 | 77,181,170 |
NET OPERATING INCOME | 12,505,331 | 10,407,479 | 10,162,050 |
Other income (expense) | |||
Interest expense | -14,636,870 | -9,606,479 | -10,399,962 |
Interest income | 19,865 | 17,914 | 16,158 |
Equity income in joint venture | 307,370 | 449,500 | 178,138 |
Realized and unrealized loss on warrant derivative | -2,205,248 | -2,026,677 | |
Loss on debt extinguishment | -831,079 | -2,040,662 | -1,982,184 |
Gain on involuntary conversion of asset | 169,151 | ||
Impairment of note receivable | -110,871 | ||
Net loss before income taxes | -2,466,232 | -2,977,496 | -4,163,348 |
Income tax (provision) benefit | 1,727,723 | -1,496,096 | -1,246,397 |
Net loss | -738,509 | -4,473,592 | -5,409,745 |
Add: Net loss attributable to the noncontrolling interest | 153,838 | 989,623 | 1,241,868 |
Net loss attributable to the Company | -584,671 | -3,483,969 | -4,167,877 |
Net loss per share attributable to the Company | |||
Basic and diluted | ($0.06) | ($0.34) | ($0.42) |
Weighted average number of shares outstanding | |||
Basic and diluted | 10,377,125 | 10,156,955 | 9,995,638 |
Sotherly Hotels LP [Member] | |||
REVENUE | |||
Rooms department | 84,618,889 | 62,837,422 | 60,824,016 |
Food and beverage department | 31,444,984 | 22,054,209 | 21,961,328 |
Other operating departments | 6,876,046 | 4,482,896 | 4,557,876 |
Total revenue | 122,939,919 | 89,374,527 | 87,343,220 |
Hotel operating expenses | |||
Rooms department | 22,913,479 | 17,212,549 | 16,638,574 |
Food and beverage department | 21,026,202 | 14,048,924 | 14,287,874 |
Other operating departments | 1,192,183 | 508,868 | 480,307 |
Indirect | 45,072,491 | 33,757,896 | 33,033,820 |
Total hotel operating expenses | 90,204,355 | 65,528,237 | 64,440,575 |
Depreciation and amortization | 11,969,284 | 8,467,228 | 8,661,769 |
Impairment of investment in hotel properties, net | 3,175,000 | 611,000 | |
Corporate general and administrative | 5,085,949 | 4,360,583 | 4,078,826 |
Total operating expenses | 110,434,588 | 78,967,048 | 77,181,170 |
NET OPERATING INCOME | 12,505,331 | 10,407,479 | 10,162,050 |
Other income (expense) | |||
Interest expense | -14,636,870 | -9,606,479 | -10,399,962 |
Interest income | 19,865 | 17,914 | 16,158 |
Equity income in joint venture | 307,370 | 449,500 | 178,138 |
Realized and unrealized loss on warrant derivative | -2,205,248 | -2,026,677 | |
Loss on debt extinguishment | -831,079 | -2,040,662 | -1,982,184 |
Gain on involuntary conversion of asset | 169,151 | ||
Impairment of note receivable | -110,871 | ||
Net loss before income taxes | -2,466,232 | -4,163,348 | |
Income tax (provision) benefit | 1,727,723 | -1,496,096 | -1,246,397 |
Net loss | ($738,509) | ($4,473,592) | ($5,409,745) |
Net loss per share attributable to the Company | |||
Basic and diluted | ($0.06) | ($0.34) | ($0.42) |
Weighted average number of shares outstanding | |||
Basic and diluted | 13,107,413 | 13,042,020 | 12,973,953 |
Consolidated_Statement_of_Chan
Consolidated Statement 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, 2011 | $43,687,100 | $99,538 | $56,911,039 | ($22,221,483) | $8,898,006 |
Balances, shares, beginning at Dec. 31, 2011 | 9,953,786 | ||||
Net loss | -5,409,745 | -4,167,877 | -1,241,868 | ||
Redemption of units in Operating Partnership | -36,180 | -36,180 | |||
Issuance of restricted common stock awards | 110,400 | 460 | 109,940 | ||
Issuance of restricted common stock awards, shares | 46,000 | ||||
Dividends and distributions declared | -1,297,622 | -999,978 | -297,644 | ||
Balances, ending at Dec. 31, 2012 | 37,053,953 | 99,998 | 57,020,979 | -27,389,338 | 7,322,314 |
Balances, shares, ending at Dec. 31, 2012 | 9,999,786 | ||||
Net loss | -4,473,592 | -3,483,969 | -989,623 | ||
Conversion of units in Operating Partnership to shares of common stock | 1,316 | 337,449 | -338,765 | ||
Conversion of units in Operating Partnership to shares of common stock, shares | 131,641 | ||||
Redemption of units in Operating Partnership | -32,900 | -32,900 | |||
Issuance of units for Houston purchase | 153,636 | 153,636 | |||
Issuance of restricted and unrestricted common stock awards | 176,440 | 755 | 175,685 | ||
Issuance of restricted and unrestricted common stock awards, shares | 75,500 | ||||
Dividends and distributions declared | -2,022,742 | -1,577,466 | -445,276 | ||
Balances, ending at Dec. 31, 2013 | 30,854,795 | 102,069 | 57,534,113 | -32,450,773 | 5,669,386 |
Balances, shares, ending at Dec. 31, 2013 | 10,206,927 | ||||
Net loss | -738,509 | -584,671 | -153,838 | ||
Conversion of units in Operating Partnership to shares of common stock | 3,100 | 755,750 | -758,850 | ||
Conversion of units in Operating Partnership to shares of common stock, shares | 310,000 | ||||
Redemption of units in Operating Partnership | -25,621 | -25,621 | |||
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 | ||||
Issuance of common stock through ATM offering, net | 124,911 | 172 | 124,739 | ||
Issuance of common stock through ATM offering, shares | 17,255 | ||||
Amortization of restricted stock award | 19,920 | 19,920 | |||
Dividends and distributions declared | -2,951,284 | -2,352,869 | -598,415 | ||
Balances, ending at Dec. 31, 2014 | $27,509,857 | $105,709 | $58,659,799 | ($35,388,313) | $4,132,662 |
Balances, shares, ending at Dec. 31, 2014 | 10,570,932 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Cash flows from operating activities: | |||
Net loss | ($738,509) | ($4,473,592) | ($5,409,745) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 11,969,284 | 8,467,228 | 8,661,769 |
Equity in income of joint venture | -307,370 | -449,500 | -178,138 |
Impairment of investment in hotel properties, net | 3,175,000 | 611,000 | |
Impairment of note receivable | 110,871 | ||
Realized and unrealized loss on warrant derivative | 2,205,248 | 2,026,677 | |
Amortization of deferred financing costs | 1,428,674 | 1,518,556 | 1,971,796 |
Paid-in-kind interest | 186,293 | 387,554 | |
Charges related to equity-based compensation | 245,565 | 323,800 | 110,400 |
Changes in assets and liabilities: | |||
Restricted cash | -92,439 | -173,990 | 377,908 |
Accounts receivable | 369,685 | 58,368 | 212,822 |
Inventory, prepaid expenses and other assets | -1,677,032 | 116,976 | 205,878 |
Deferred income taxes | -1,961,663 | 1,370,189 | 1,241,848 |
Accounts payable and accrued liabilities | 2,338,688 | -3,396 | -896,650 |
Advance deposits | 89,099 | -33,233 | 172,745 |
Due from affiliates | 12,273 | -129,196 | 16,222 |
Net cash provided by operating activities | 14,851,255 | 9,594,751 | 9,011,957 |
Cash flows from investing activities: | |||
Acquisition of hotel property | -61,106,085 | -30,725,959 | |
Improvements and additions to hotel properties | -9,801,018 | -4,906,000 | -2,908,114 |
Distributions from joint venture | 750,000 | 6,646,627 | 500,000 |
Funding of restricted cash reserves | -3,692,045 | -2,195,658 | -1,983,383 |
Proceeds from restricted cash reserves | 2,583,419 | 1,653,401 | 1,215,972 |
Proceeds from involuntary conversion of assets | 169,151 | ||
Proceeds from sale of assets | 19,404 | ||
Net cash used in investing activities | -71,096,578 | -29,527,589 | -3,156,121 |
Cash flows from financing activities: | |||
Proceeds of unsecured notes | 25,300,000 | 27,600,000 | |
Proceeds of mortgage debt | 48,600,000 | 29,367,287 | 58,300,000 |
Proceeds of loans | 19,000,000 | ||
Proceeds from the sale of stock, net | 124,911 | ||
Payments on line of credit | -25,537,290 | ||
Payments on mortgage debt and loans | -24,171,892 | -8,703,390 | -22,033,393 |
Payment of deferred financing costs | -2,637,637 | -2,684,581 | -1,102,398 |
Distributions paid | -2,686,567 | -1,823,723 | -1,167,216 |
Redemption of redeemable preferred stock | -14,413,943 | -11,513,602 | |
Redemption of units in Operating Partnership | -25,621 | -32,900 | -36,180 |
Redemption of the warrant | -7,175,000 | ||
Net cash provided by (used in) financing activities | 63,503,194 | 22,133,750 | -3,090,079 |
Net increase in cash and cash equivalents | 7,257,871 | 2,200,912 | 2,765,757 |
Cash and cash equivalents at the beginning of the year | 9,376,628 | 7,175,716 | 4,409,959 |
Cash and cash equivalents at the end of the year | 16,634,499 | 9,376,628 | 7,175,716 |
Supplemental disclosures: | |||
Cash paid during the year for interest | 13,766,824 | 10,423,150 | 10,412,434 |
Cash paid during the year for income taxes | 263,621 | 143,848 | 117,447 |
Non-cash investing and financing activities: | |||
Issuance of units in Operating Partnership for acquisition of hotel property | 153,636 | ||
Change in amount of hotel property improvements in accounts payable and accrued liabilities | 1,108,182 | 195,725 | 210,737 |
Change in amount of deferred financing and deferred offering cost in accounts payable and accrued liabilities | 375,487 | 248,630 | |
Sotherly Hotels LP [Member] | |||
Cash flows from operating activities: | |||
Net loss | -738,509 | -4,473,592 | -5,409,745 |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 11,969,284 | 8,467,228 | 8,661,769 |
Equity in income of joint venture | -307,370 | -449,500 | -178,138 |
Impairment of investment in hotel properties, net | 3,175,000 | 611,000 | |
Impairment of note receivable | 110,871 | ||
Realized and unrealized loss on warrant derivative | 2,205,248 | 2,026,677 | |
Amortization of deferred financing costs | 1,428,674 | 1,518,556 | 1,971,796 |
Paid-in-kind interest | 186,293 | 387,554 | |
Charges related to equity-based compensation | 245,565 | 323,800 | 110,400 |
Changes in assets and liabilities: | |||
Restricted cash | -92,439 | -173,990 | 377,908 |
Accounts receivable | 369,685 | 58,368 | 212,822 |
Inventory, prepaid expenses and other assets | -1,677,032 | 116,976 | 205,878 |
Deferred income taxes | -1,961,663 | 1,370,189 | 1,241,848 |
Accounts payable and accrued liabilities | 2,338,688 | -3,396 | -896,650 |
Advance deposits | 89,099 | -33,233 | 172,745 |
Due from affiliates | 12,273 | -129,196 | 16,222 |
Net cash provided by operating activities | 14,851,255 | 9,594,751 | 9,011,957 |
Cash flows from investing activities: | |||
Acquisition of hotel property | -61,106,085 | -30,725,959 | |
Improvements and additions to hotel properties | -9,801,018 | -4,906,000 | -2,908,114 |
Distributions from joint venture | 750,000 | 6,646,627 | 500,000 |
Funding of restricted cash reserves | -3,692,045 | -2,195,658 | -1,983,383 |
Proceeds from restricted cash reserves | 2,583,419 | 1,653,401 | 1,215,972 |
Proceeds from involuntary conversion of assets | 169,151 | ||
Proceeds from sale of assets | 19,404 | ||
Net cash used in investing activities | -71,096,578 | -29,527,589 | -3,156,121 |
Cash flows from financing activities: | |||
Proceeds of unsecured notes | 25,300,000 | 27,600,000 | |
Proceeds of mortgage debt | 48,600,000 | 29,367,287 | 58,300,000 |
Proceeds of loans | 19,000,000 | ||
Proceeds from the issuance of units in Operating Partnership, net | 124,911 | ||
Payments on line of credit | -25,537,290 | ||
Payments on mortgage debt and loans | -24,171,892 | -8,703,390 | -22,033,393 |
Payment of deferred financing costs | -2,637,637 | -2,684,581 | -1,102,398 |
Distributions paid | -2,686,567 | -1,823,723 | -1,167,216 |
Redemption of redeemable preferred stock | -14,413,943 | -11,513,602 | |
Redemption of units in Operating Partnership | -25,621 | -32,900 | -36,180 |
Redemption of the warrant | -7,175,000 | ||
Net cash provided by (used in) financing activities | 63,503,194 | 22,133,750 | -3,090,079 |
Net increase in cash and cash equivalents | 7,257,871 | 2,200,912 | 2,765,757 |
Cash and cash equivalents at the beginning of the year | 9,376,628 | 7,175,716 | 4,409,959 |
Cash and cash equivalents at the end of the year | 16,634,499 | 9,376,628 | 7,175,716 |
Supplemental disclosures: | |||
Cash paid during the year for interest | 13,766,824 | 10,423,150 | 10,412,434 |
Cash paid during the year for income taxes | 263,621 | 143,848 | 117,447 |
Non-cash investing and financing activities: | |||
Issuance of units in Operating Partnership for acquisition of hotel property | 153,636 | ||
Change in amount of hotel property improvements in accounts payable and accrued liabilities | 1,108,182 | 195,725 | 210,737 |
Change in amount of deferred financing and deferred offering cost in accounts payable and accrued liabilities | $375,487 | $248,630 |
Consolidated_Statement_of_Chan1
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, 2011 | $43,687,100 | $681,731 | $43,005,369 | |
Balances, units, beginning at Dec. 31, 2011 | 129,387 | 12,809,238 | ||
Issuance of partnership units | 110,400 | 1,104 | 109,296 | |
Issuance of partnership units, number of units | 460 | 45,540 | ||
Distributions declared | -1,297,622 | -12,976 | -1,284,646 | |
Redemption of limited partnership units | -36,180 | -633 | -35,547 | |
Redemption of limited partnership units, number of units | -120 | -11,880 | ||
Net loss | -5,409,745 | -5,409,745 | -54,096 | -5,355,649 |
Balances, ending at Dec. 31, 2012 | 37,053,953 | 615,130 | 36,438,823 | |
Balances, units, ending at Dec. 31, 2012 | 129,727 | 12,842,898 | ||
Issuance of partnership units | 330,076 | 4,625 | 325,451 | |
Issuance of partnership units, number of units | 1,084 | 107,345 | ||
Distributions declared | -2,022,742 | -20,227 | -2,002,515 | |
Redemption of limited partnership units | -32,900 | -476 | -32,424 | |
Redemption of limited partnership units, number of units | -100 | -9,900 | ||
Net loss | -4,473,592 | -4,473,592 | -44,736 | -4,428,856 |
Balances, ending at Dec. 31, 2013 | 30,854,795 | 554,316 | 30,300,479 | |
Balances, units, ending at Dec. 31, 2013 | 130,711 | 12,940,343 | ||
Issuance of partnership units | 350,556 | 3,534 | 347,022 | |
Issuance of partnership units, number of units | 540 | 53,465 | ||
Amortization of restricted award | 19,920 | 19,920 | 199 | 19,721 |
Distributions declared | -2,951,284 | -29,644 | -2,921,640 | |
Redemption of limited partnership units | -25,621 | -228 | -25,393 | |
Redemption of limited partnership units, number of units | -33 | -3,267 | ||
Net loss | -738,509 | -738,509 | -7,386 | -731,123 |
Balances, ending at Dec. 31, 2014 | $27,509,857 | $520,791 | $26,989,066 | |
Balances, units, ending at Dec. 31, 2014 | 131,218 | 12,990,541 |
Organization_and_Description_o
Organization and Description of Business | 12 Months Ended |
Dec. 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. Most 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 (“IPO”) and thereafter consummated the acquisition of six hotel properties (“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”), the Company, as general partner, is not entitled to compensation for its services to the Operating Partnership. The Company, as general partner, conducts 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 December 31, 2014, was approximately 80.6% owned by the Company, and its subsidiaries, lease its 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, which does business as Chesapeake Hospitality (“Chesapeake Hospitality”), 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 these “Notes to Consolidated Financial Statements” 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 two prior fiscal years include the following: | |
On March 5, 2012, we obtained a $30.0 million mortgage with TD Bank, N.A. on the Hilton Philadelphia Airport. The mortgage bears interest at a rate of 30-day LIBOR plus additional interest of 3.0% per annum and provides for level payments of principal and interest on a monthly basis under a 25-year amortization schedule. The mortgage’s maturity date is August 30, 2014, with an extension option until March 1, 2017, contingent upon the extension or acceptable replacement of the Hilton Worldwide license agreement. Proceeds of the mortgage were used to extinguish our indebtedness under the then-existing credit facility, prepay a portion of the Company’s indebtedness under the then existing $10.0 million borrowing with Essex Equity High Income Joint Investment Vehicle, LLC (the “Bridge Financing”) and for working capital. With this transaction, our syndicated credit facility was extinguished and the Crowne Plaza Tampa Westshore hotel property was released from such mortgage encumbrance. | |
On June 15, 2012, the Company entered into an amendment of its Bridge Financing that provided, subject to a $1.5 million prepayment which the Company made on June 18, 2012, that the amount of undrawn term loan commitments increased to $7.0 million, of which $2.0 million was reserved to repay principal amounts outstanding on the Crowne Plaza Jacksonville Riverfront hotel property. | |
On June 15, 2012, the Company simultaneously entered into an agreement with the holders of the Company’s Preferred Stock to redeem approximately 11,514 shares of Preferred Stock for an aggregate redemption price of approximately $12.3 million plus the payment of related accrued and unpaid cash and stock dividends. | |
On June 18, 2012, we obtained a $14.0 million mortgage with C1 Bank on the Crowne Plaza Tampa Westshore in Tampa, Florida. The mortgage bears interest at a rate of 5.60% per annum and provides for level payments of principal and interest on a monthly basis under a 25-year amortization schedule. The mortgage’s maturity date is June 18, 2017. Proceeds of the mortgage were used to pay the outstanding indebtedness under the then-existing Bridge Financing and to make a special distribution by the Operating Partnership to the Company to redeem the 11,514 shares of Preferred Stock referenced above. | |
On June 22, 2012, 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, 2013. Under the terms of the extension, the Company was required to make monthly principal payments of $16,000 as well as quarterly principal payments to the lender of $200,000 each on July 1, 2012, October 1, 2012, January 1, 2013 and April 1, 2013. Interest payable monthly pursuant to the mortgage remained unchanged at a rate of LIBOR plus additional interest of 4.55% and a minimum total rate of interest of 5.00% per annum. | |
On July 10, 2012, we obtained a $14.3 million mortgage with Fifth Third Bank on the Crowne Plaza Jacksonville Riverfront in Jacksonville, Florida. The mortgage bears interest at a rate of LIBOR plus additional interest of 3.0% per annum and provides for level payments of principal and interest on a monthly basis under a 25-year amortization schedule. The maturity date is July 10, 2015, but may be extended for an additional year pursuant to certain terms and conditions. The mortgage also contains an “earn-out” feature which allows for an additional draw of up to $3.0 million during the term of the loan contingent upon satisfaction of certain debt service coverage and loan-to-value covenants. Proceeds of the mortgage were used to repay the existing mortgage indebtedness and to pay closing costs. | |
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 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 continue to be required to make monthly principal payments of $16,000. Interest payable monthly pursuant to the mortgage remained unchanged 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 “8% 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 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 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 “OP Warrant”) corresponding to an aggregate of 900,000 Issuable Warrant Units, as defined in the OP 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 OP 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 The Carlyle Group (“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 The Carlyle Group, 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 DoubleTree by 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 DoubleTree by 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 to rebrand the Hilton Philadelphia Airport hotel as a DoubleTree by Hilton in November 2014, subject to the completion of certain product improvement requirements that were met as of October 27, 2014. | |
On June 27, 2014, 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, 2016. Under the terms of the extension, we made a principal payment of $0.8 million and are required to make monthly principal payments of $83,000 and interest payments at a rate of 5.0% per annum. | |
On November 21, 2014, we closed on a 7.0% unsecured note offering in the aggregate amount of $25.3 million, of which a portion of the proceeds was used to repay the $19.0 million Bridge Loan, with the remainder to be used for general corporate purposes. | |
On November 24, 2014, we repaid the $19.0 million Bridge Loan. | |
On December 19, 2014, we secured $3.0 million additional proceeds on our mortgage loan on the Crowne Plaza Jacksonville Riverfront property as part of an earnout pursuant to the terms of the existing loan agreement. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||||||||||
Dec. 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. | |||||||||||||||||||||||||
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. | |||||||||||||||||||||||||
Our review of possible impairment at one of our hotel properties revealed an excess of current carrying cost over the estimated undiscounted future cash flows, which was triggered by a combination of a change in anticipated use and future branding of the property; and a re-evaluation of future revenues based on anticipated market conditions, market penetration and costs necessary to achieve such market penetration, resulting in an impairment of approximately $3.2 million and $0.6 million, as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||
Assets Held For Sale – The Company records assets as held for sale when management has committed to a plan to sell the assets, actively seeks a buyer for the assets, and the consummation of the sale is considered probable and is expected within one year. | |||||||||||||||||||||||||
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 Chesapeake Hospitality 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 annual 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 and previously existing line of credit. | |||||||||||||||||||||||||
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 unamortized franchise fees as of December 31, 2014 and 2013 were approximately $394,139 and $196,989, respectively. Amortization expense for the years ended December 31, 2014, 2013 and 2012 was $50,908, $49,658 and $43,500, respectively. | |||||||||||||||||||||||||
Deferred Financing and Offering Costs – Deferred financing costs are recorded at cost and consist of loan fees and other costs incurred in issuing debt. Deferred offering costs are recorded at cost and consist of offering fees and other costs incurred in issuing equity and are reflected in prepaid expenses, inventory and other assets on the consolidated balance sheets. 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. Amortization of deferred offering costs occurs when the equity offering is complete, whereby the costs are offset against the equity funds raised in the future and included in additional paid in capital on the consolidated balance sheets, or if the offering expires and the offering costs exceed the funds raised in the offering then the excess will be included in corporate general and administrative expenses 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 our then-existing credit agreement and acted as a cash flow hedge involving the receipts of variable-rate amounts from a counterparty in exchange for our making fixed-rate payments without exchange of the underlying principal amount. We valued our 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 mortgage loans and unsecured notes measured at fair value and the basis for that measurement: | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Investment in hotel property, net(1) | $ | — | $ | — | $ | 10,011,647 | |||||||||||||||||||
Mortgage loans(2) | $ | — | $ | (162,841,165 | ) | $ | — | ||||||||||||||||||
Unsecured notes(3) | $ | (28,770,240 | ) | $ | — | $ | — | ||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Investment in hotel property, net(1) | $ | — | $ | — | $ | 6,396,787 | |||||||||||||||||||
Mortgage loans(2) | $ | — | $ | (209,994,659 | ) | $ | — | ||||||||||||||||||
Unsecured notes(3) | $ | (53,816,320 | ) | $ | — | $ | — | ||||||||||||||||||
-1 | A non-recurring fair value measurement was conducted in both 2013 and 2014 for our investment in hotel property, which resulted in impairment charges for the years ended December 31, 2014 and 2013, which represent the amounts by which the carrying value of the asset group exceeded its fair value. | ||||||||||||||||||||||||
-2 | Mortgage loans are reflected at carrying value on our Consolidated Balance Sheet as of December 31, 2014 and December 31, 2013. | ||||||||||||||||||||||||
-3 | Unsecured notes are recorded at historical cost on our Consolidated Balance Sheet as of December 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. | |||||||||||||||||||||||||
Lease Revenue – Several of our properties generate revenue from leasing commercial space adjacent to the hotel, the restaurant space within the hotel, apartment units and space on the roofs of our hotels for antennas and satellite dishes. We account for the lease income as revenue from other operating departments within the statement of consolidated operations pursuant to the terms of each lease. Lease revenue was approximately $1.7 million, $1.7 and $1.6 million, for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||
A schedule of minimum future lease payments receivable for the following twelve-month periods is as follows: | |||||||||||||||||||||||||
December 31, 2015 | $ | 1,206,269 | |||||||||||||||||||||||
December 31, 2016 | 1,034,209 | ||||||||||||||||||||||||
December 31, 2017 | 643,123 | ||||||||||||||||||||||||
December 31, 2018 | 202,615 | ||||||||||||||||||||||||
December 31, 2019 | 159,520 | ||||||||||||||||||||||||
December 31, 2020 and thereafter | 619,780 | ||||||||||||||||||||||||
Total | $ | 3,865,516 | |||||||||||||||||||||||
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 December 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 December 31, 2014, the tax years that remain subject to examination by the major tax jurisdictions to which the Company is subject generally include 2010 through 2014. In addition, as of December 31, 2014, the tax years that remain subject to examination by the major tax jurisdictions to which MHI TRS is subject generally include 2004 through 2013. | |||||||||||||||||||||||||
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 18,000 shares issued to the Chief Financial Officer upon execution of his employment contract which will vest pro rata on each of the next three 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. The 2004 plan was terminated in 2013. | |||||||||||||||||||||||||
Under the 2013 Plan, the Company has made stock awards totaling 72,850 shares, including 50,350 non-restricted shares to certain executives and employees and 22,500 restricted shares issued to its independent directors. All awards have vested except for 9,750 shares issued to the Company’s independent directors in January 2015, 750 of which will vest on April 27, 2015 and 9,000 of which will vest on December 31, 2015. | |||||||||||||||||||||||||
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. The value of the awards is charged to compensation expense on a straight-line basis over the vesting or service period based on the value of the award as determined by the Company’s stock price on the date of grant or issuance. As of December 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 years ended December 31, 2014, 2013 and 2012 was $292,405, $323,800 and $110,400, respectively. The 2004 Plan was terminated in April 2013. | |||||||||||||||||||||||||
Advertising – Advertising costs were $198,991, $181,886 and $186,963 for the years ended December 31, 2014, 2013 and 2012, respectively and are expensed as incurred. | |||||||||||||||||||||||||
Comprehensive Income (Loss) – Comprehensive income (loss), as defined, 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 and Immaterial Restatements– Certain revisions have been made to the prior period balances to correct immaterial errors. These immaterial corrections include adjustments to unreimbursed diesel spill clean-up costs impacting accounts receivable, accruals of prior period bonuses and franchise fees, and classification of impairment charges (from other expenses to operating expenses) among others. The immaterial restatements have been made in the following accounts, as of December 31, 2013 and for the years ended December 31, 2013 and 2012: | |||||||||||||||||||||||||
2013 | Immaterial | 2013 Restated | |||||||||||||||||||||||
As Previously | Restatement & | ||||||||||||||||||||||||
Reported | Reclassifications | ||||||||||||||||||||||||
Inc/(Dec) | |||||||||||||||||||||||||
Accounts affected by the immaterial restatement and reclassifications on consolidated balance sheets: | |||||||||||||||||||||||||
Investment in joint venture | $ | 2,446,039 | $ | (21,302 | ) | $ | 2,424,737 | ||||||||||||||||||
Accounts receivable, net | 1,982,091 | (170,065 | ) | 1,812,026 | |||||||||||||||||||||
Accounts receivable – affiliate and joint venture | 101,439 | 108,508 | 209,947 | ||||||||||||||||||||||
Prepaid expenses, inventory and other assets | 2,444,975 | (183,672 | ) | 2,261,303 | |||||||||||||||||||||
Deferred income taxes | 1,186,122 | 395,510 | 1,581,632 | ||||||||||||||||||||||
Total assets | 228,040,102 | 128,979 | 228,169,081 | ||||||||||||||||||||||
Account payable and accrued liabilities | 7,650,219 | 445,563 | 8,095,782 | ||||||||||||||||||||||
Total liabilities | 196,868,723 | 445,563 | 197,314,286 | ||||||||||||||||||||||
Distributions in excess of retained earnings | (32,210,917 | ) | (239,856 | ) | (32,450,773 | ) | |||||||||||||||||||
Noncontrolling interest | 5,746,114 | (76,728 | ) | 5,669,386 | |||||||||||||||||||||
Total equity | 31,171,379 | (316,584 | ) | 30,854,795 | |||||||||||||||||||||
Total liabilities and equity | 228,040,102 | 128,979 | 228,169,081 | ||||||||||||||||||||||
2013 | Immaterial | 2013 Restated | 2012 | Immaterial | 2012 | ||||||||||||||||||||
As Previously | Restatement | As Previously | Restatement | Restated | |||||||||||||||||||||
Reported | Inc/(Dec) | Reported | Inc/(Dec) | ||||||||||||||||||||||
Accounts affected by the immaterial restatement on consolidated statements of operations: | |||||||||||||||||||||||||
Total hotel operating expenses | 65,468,944 | 59,293 | 65,528,237 | 64,297,743 | 142,832 | 64,440,575 | |||||||||||||||||||
Equity income of joint venture | 453,700 | (4,200 | ) | 449,500 | 172,172 | 5,966 | 178,138 | ||||||||||||||||||
Income tax provision | (1,521,182 | ) | 25,086 | (1,496,096 | ) | (1,301,229 | ) | 54,832 | (1,246,397 | ) | |||||||||||||||
Net loss | (4,435,185 | ) | (38,407 | ) | (4,473,592 | ) | (5,327,711 | ) | (82,034 | ) | (5,409,745 | ) | |||||||||||||
Net loss attributable to the noncontrolling interest | 981,126 | 8,497 | 989,623 | 1,223,036 | 18,832 | 1,241,868 | |||||||||||||||||||
Net loss attributable to the Company | (3,454,059 | ) | (29,910 | ) | (3,483,969 | ) | (4,104,675 | ) | (63,202 | ) | (4,167,877 | ) | |||||||||||||
New Accounting Pronouncements – In February 2015, the FASB issued Accounting Standards Update (“ASU”) 2015-02 related to ASC Topic 810, Consolidation. The amendments in this update affect reporting entities that are required to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. Specifically, the amendments: 1. Modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities; 2. Eliminate the presumption that a general partner should consolidate a limited partnership; 3. Affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; 4. Provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. This guidance will be effective for annual reporting periods beginning after December 15, 2017. We do not expect this ASU to have an impact on the Company’s consolidated financial position, results of operations or cash flows. | |||||||||||||||||||||||||
In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09 related to ASC Topic 606, Revenue from Contracts with Customers. The guidance in this update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The guidance in this update supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance throughout the Industry Topics of the Codification. Additionally, this update supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition—Construction-Type and Production-Type Contracts. In addition, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer (for example, assets within the scope of Topic 360,Property, Plant, and Equipment, and intangible assets within the scope of Topic 350, Intangibles—Goodwill and Other) are amended to be consistent with the guidance on recognition and measurement (including the constraint on revenue) in this update. As issued, this ASU is not effective until annual reporting periods beginning after December 15, 2016, however at its April 1, 2015 meeting, the FASB tentatively decided to defer the effective date of ASU 2014-09 such that it would be effective for annual reporting periods beginning after December 15, 2017. We do not expect this ASU to have an impact on the Company’s consolidated financial position, results of operations or cash flows. |
Acquisition_of_Hotel_Propertie
Acquisition of Hotel Properties | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Business Combinations [Abstract] | |||||||||
Acquisition of Hotel Properties | 3. Acquisition of Hotel Properties | ||||||||
Houston and Atlanta Acquisitions. On November 13, 2013, we acquired the 259-room Crowne Plaza Houston Downtown in Houston, Texas, for approximately $30.9 million. On March 27, 2014, we acquired the 326-room Georgian Terrace in Atlanta, Georgia, for approximately $61.1 million. The allocation of the purchase price based on their fair values was as follows: | |||||||||
Crowne Plaza Houston | Georgian | ||||||||
Terrace | |||||||||
Land and land improvements | $ | 7,373,937 | $ | 10,127,687 | |||||
Buildings and improvements | 22,184,692 | 45,385,939 | |||||||
Furniture, fixtures and equipment | 718,828 | 5,163,135 | |||||||
Investment in hotel properties | 30,277,457 | 60,676,761 | |||||||
Restricted cash | — | 124,658 | |||||||
Accounts receivable | 391,470 | 465,287 | |||||||
Accounts receivable-affiliate | 72,094 | — | |||||||
Prepaid expenses, inventory and other assets | 83,378 | 232,415 | |||||||
Intangible assets | 761,212 | 198,583 | |||||||
Accounts payable and accrued liabilities | (631,847 | ) | (126,747 | ) | |||||
Advance deposits | (74,169 | ) | (464,872 | ) | |||||
$ | 30,879,595 | $ | 61,106,085 | ||||||
Issuance of units | (153,636 | ) | — | ||||||
Net cash | $ | 30,725,959 | $ | 61,106,085 | |||||
The results of operations of the hotels are included in our consolidated financial statements from the date of acquisition. The total revenue and net loss related to the Crowne Plaza Houston acquisition for the period November 13, 2013 to December 31, 2013 are approximately $1.4 million and $0.2 million, respectively. The total revenue and net income related to the Georgian Terrace acquisition for the period March 27, 2014 to December 31, 2014 are approximately $16.4 million and $2.2 million, respectively. The following pro forma financial information presents the results of operations of the Company and the Operating Partnership for the years ended December 31, 2014 and 2013 as if the acquisition 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: | |||||||||
2014 | 2013 | ||||||||
(unaudited) | (unaudited) | ||||||||
Pro forma revenues | $ | 127,710,583 | $ | 121,678,207 | |||||
Pro forma operating expenses | 117,286,682 | 106,883,934 | |||||||
Pro forma operating income | 10,423,901 | 14,794,273 | |||||||
Pro forma net loss | (2,959,101 | ) | (4,089,813 | ) | |||||
Pro forma loss per basic and diluted share and unit | (0.29 | ) | (0.40 | ) | |||||
Pro forma basic and diluted common shares | 10,377,125 | 10,156,955 | |||||||
Investment_in_Hotel_Properties
Investment in Hotel Properties | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Real Estate [Abstract] | |||||||||
Investment in Hotel Properties | 4. Investment in Hotel Properties | ||||||||
Investment in hotel properties as of December 31, 2014 and 2013 consisted of the following: | |||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Land and land improvements | $ | 37,483,400 | $ | 26,956,311 | |||||
Buildings and improvements | 257,343,516 | 206,101,663 | |||||||
Furniture, fixtures and equipment | 38,762,997 | 29,829,908 | |||||||
333,589,913 | 262,887,882 | ||||||||
Less: accumulated depreciation and impairment | (73,397,760 | ) | (60,242,249 | ) | |||||
$ | 260,192,153 | $ | 202,645,633 | ||||||
Our review of possible impairment at one of our hotel properties revealed an excess of current carrying cost over the estimated undiscounted future cash flows, which was triggered by a combination of a change in anticipated use and future branding of the property; and a re-evaluation of future revenues based on anticipated market conditions, market penetration and costs necessary to achieve such market penetration, resulting in an impairment of approximately $3.2 million and $0.6 million, as of December 31, 2014 and 2013, respectively. |
Debt
Debt | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||
Debt | 5. Debt | ||||||||||||||||||||||
Credit Facility. During a portion of the year ended December 31, 2012, we had a secured credit facility with a syndicated bank group comprised of BB&T, Key Bank National Association and Manufacturers and Traders Trust Company which was extinguished in March 2012. | |||||||||||||||||||||||
Mortgage Debt. As of December 31, 2014 and 2013, we had approximately $205.3 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 | December 31, | December 31, | Penalties | Date | Provisions | ||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Crowne Plaza Hampton Marina | $ | 4,509,500 | $ | 5,903,500 | None | 6/30/16 | $ | 83,000 | (1) | 5 | %(2) | ||||||||||||
Crowne Plaza Houston Downtown | 20,954,867 | 21,428,258 | Yes(3) | 4/12/16 | (4) | 25 years | 4.5 | % | |||||||||||||||
Crowne Plaza Jacksonville Riverfront | 16,358,706 | 13,756,209 | None | 7/10/15 | (5) | 25 years | LIBOR plus 3.00 | % | |||||||||||||||
Crowne Plaza Tampa Westshore | 13,317,684 | 13,602,701 | None | 6/18/17 | 25 years | 5.6 | % | ||||||||||||||||
DoubleTree by Hilton Philadelphia Airport | 33,378,102 | 28,731,151 | None | 4/1/19 | 25 years | LIBOR plus 3.00 | %(7) | ||||||||||||||||
DoubleTree by Hilton Raleigh Brownstone – University | 15,274,284 | 15,525,626 | -6 | 8/1/18 | 30 years | 4.78 | % | ||||||||||||||||
Georgian Terrace | 41,500,000 | — | None | 3/27/17 | (8) | 25 years | LIBOR plus 3.75 | %(9) | |||||||||||||||
Hilton Savannah DeSoto | 21,050,093 | 21,546,423 | Yes(10) | 9/1/17 | 25 years | 6.06 | % | ||||||||||||||||
Hilton Wilmington Riverside | 20,389,325 | 20,919,030 | Yes(10) | 4/1/17 | 25 years | 6.21 | % | ||||||||||||||||
Holiday Inn Laurel West | 6,974,458 | 7,141,845 | Yes(11) | 8/5/21 | 25 years | 5.25 | %(12) | ||||||||||||||||
Sheraton Louisville Riverside | 11,584,638 | 11,808,806 | -6 | 1/6/17 | 25 years | 6.24 | % | ||||||||||||||||
Total | $ | 205,291,657 | $ | 160,363,549 | |||||||||||||||||||
-1 | The Operating Partnership is required to make monthly principal payments of $83,000. | ||||||||||||||||||||||
-2 | The note rate was changed to a fixed rate of 5.00%, effective June 27, 2014. | ||||||||||||||||||||||
-3 | The note is subject to a prepayment penalty if the loan is prepaid in full or in part prior to November 13, 2015. | ||||||||||||||||||||||
-4 | The note provides that the mortgage can be extended until November 2018 if certain conditions have been satisfied. | ||||||||||||||||||||||
-5 | The note provides that the mortgage can be extended until July 2016 if certain conditions have been satisfied. | ||||||||||||||||||||||
-6 | With limited exception, the note may not be prepaid until two months before maturity. | ||||||||||||||||||||||
-7 | The note bears a minimum interest rate of 3.50%. | ||||||||||||||||||||||
-8 | 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. | ||||||||||||||||||||||
-9 | The note bears a minimum interest rate of 4.00%. | ||||||||||||||||||||||
-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%. | ||||||||||||||||||||||
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 December 31, 2014. | |||||||||||||||||||||||
Total future mortgage debt maturities, without respect to any extension of loan maturity, as of December 31, 2014 were as follows: | |||||||||||||||||||||||
December 31, 2015 | $ | 21,477,897 | |||||||||||||||||||||
December 31, 2016 | 27,874,371 | ||||||||||||||||||||||
December 31, 2017 | 104,751,035 | ||||||||||||||||||||||
December 31, 2018 | 15,824,365 | ||||||||||||||||||||||
December 31, 2019 | 29,372,341 | ||||||||||||||||||||||
December 31, 2020 and thereafter | 5,991,648 | ||||||||||||||||||||||
Total future maturities | $ | 205,291,657 | |||||||||||||||||||||
7.0% Unsecured Notes. On November 21, 2014, the Operating Partnership issued 7.0% senior unsecured notes in the aggregate amount of $25.3 million (the “7% Notes”). The indenture requires quarterly payments of interest and matures on November 15, 2019. The 7% Notes are callable after November 15, 2017 at 101% of face value. | |||||||||||||||||||||||
8.0% Unsecured Notes. On September 30, 2013, the Operating Partnership issued 8.0% senior unsecured notes in the aggregate amount of $27.6 million (the “8% Notes”). The indenture requires quarterly payments of interest and matures on September 30, 2018. The 8% Notes are callable after September 30, 2016 at 101% of face value. | |||||||||||||||||||||||
Loan from Carlyle Affiliate Lender. On February 9, 2009, an indirect subsidiary of ours which is a member of the joint venture entity that owns the Crowne Plaza Hollywood Beach Resort, borrowed $4.75 million from the Carlyle entity that is the other member of such joint venture (the “Carlyle Affiliate Lender”), for the purpose of improving our liquidity. In June 2008, the joint venture that owns the property purchased a junior participation in a portion of the mortgage loan from the lender. The amount of the loan from the Carlyle Affiliate Lender approximated the amount we contributed to the joint venture to enable it to purchase its interest in the mortgage loan. The interest rate and maturity date of the loan were tied to the note that was secured by the mortgage on the property. The loan bore a rate of LIBOR plus additional interest of 3.00% and required monthly payments of interest and principal payments equal to 50.0% of any distributions it received from the joint venture. | |||||||||||||||||||||||
On December 27, 2013, the mortgage to which the loan was tied was repaid with the proceeds of a $57.0 million non-recourse mortgage loan. Excess proceeds of the mortgage were used to make a distribution to the joint venture partners. We used a portion of our share of the distribution totaling approximately $3.5 million to extinguish the loan. There was no outstanding balance on the loan at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||
Bridge Financing. On April 18, 2011, the Company entered into an agreement with Essex Equity High Income Joint Investment Vehicle, LLC, pursuant to which the Company had the right to borrow up to $10.0 million before the earlier of December 31, 2011, or the redemption in full of the Preferred Stock. On December 21, 2011, the Company entered into an amendment to the agreement extending the right to borrow the remainder of the available financing until May 31, 2013. The principal amount borrowed bore interest at the rate of 9.25% per annum, payable quarterly in arrears. At December 31, 2014 and 2013, the Company had borrowings of $0.0 million under the Bridge Financing. | |||||||||||||||||||||||
Bridge Loan. 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 had a maturity date of March 26, 2015; carried a fixed interest rate of 10.0% per annum; was subject to a prepayment premium if the loan is prepaid in full or in part prior to March 26, 2015; required mandatory prepayment upon certain events; contained limited financial covenants; and was secured by a lien on 100% of the limited partnership interests in the subsidiary that owns the DoubleTree by Hilton Philadelphia Airport hotel. On November 24, 2014, the Bridge Loan was repaid with the proceeds of a $25.3 million 7.0% senior unsecured note offering. There was no outstanding balance on the Bridge Loan at December 31, 2014 and December 31, 2013, respectively. |
Preferred_Stock_Preferred_Inte
Preferred Stock, Preferred Interest and Warrants | 12 Months Ended |
Dec. 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. As of December 31, 2011, there were 25,354 shares of the Preferred Stock issued and outstanding. In addition, under certain circumstances as set forth in the Articles Supplementary, the holder(s) of the Company’s Preferred Stock would have been entitled to appoint a majority of the members of the Company’s board of directors. The holder(s) of the Company’s Preferred Stock would have been 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 OP 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 June 15, 2012, the Company entered into an agreement with the holders of the Company’s Preferred Stock to redeem 11,514 shares of Preferred Stock for an aggregate redemption price of approximately $12.3 million plus the payment of related accrued and unpaid cash and stock dividends. | |
On June 18, 2012, we used a portion of the proceeds of the mortgage on the Crowne Plaza Tampa Westshore to make a special distribution by the Operating Partnership to the Company to redeem the 11,514 shares of Preferred Stock. The redemption resulted in a prepayment fee of approximately $0.8 million. In addition, approximately $0.7 million in unamortized issuance costs related to the redeemed shares were written off. | |
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 8% 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 December 31, 2014 and 2013, there were no shares of the Preferred Stock issued and outstanding, respectively. | |
As of December 31, 2014 and 2013, there was no redemption value of the Preferred Interest, respectively. | |
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 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 did not take into account dividends declared prior to January 1, 2012. | |
Concurrently with the issuance of the Essex Warrant, the Operating Partnership issued the OP Warrant to the Company. Under the terms of the OP Warrant, the Company was obligated to exercise the OP 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 OP 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 OP 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 OP 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 OP Warrant, for an aggregate cash redemption price of approximately $4.0 million. The redeemed warrant units are no longer Issuable Warrant Units under the OP Warrants, and all rights under the OP Warrants are terminated and extinguished. | |
On the date of issuance, we determined the fair market value of the warrants 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 | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies |
Equity
Equity | 12 Months Ended | ||||||||||||
Dec. 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 during the years ended December 31, 2014, 2013 and 2012 of the Company’s common stock: | |||||||||||||
On October 1, 2014, one holder of units in the Operating Partnership redeemed 200,000 units for an equivalent number of shares of the Company’s common stock. | |||||||||||||
During September 2014, the Company sold 16,979 shares of common stock for net proceeds of $122,793, which it contributed to the Operating Partnership for an equivalent number of units. | |||||||||||||
During August 2014, the Company sold 276 shares of common stock for net proceeds of $2,118, which it contributed to the Operating Partnership for an equivalent number of units. | |||||||||||||
On April 1, 2014, two holders of units in the Operating Partnership redeemed 110,000 units for an equivalent number of shares 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. | |||||||||||||
On February 2, 2012, the Company was issued 46,000 units in the Operating Partnership and awarded an aggregate of 29,500 shares of unrestricted stock to certain executives and employees as well as 1,500 shares of unrestricted stock and 15,000 shares of restricted stock to certain of its independent directors. | |||||||||||||
As of December 31, 2014, the Company had 10,570,932 shares of common stock outstanding. | |||||||||||||
Warrants for Shares of Common Stock – The Company has granted no warrants representing the right to purchase common stock other than the Essex Warrant described in Note 6. | |||||||||||||
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 2012, of units in the Operating Partnership in addition to the issuances of units in the Operating Partnership to the Company described above, | |||||||||||||
On November 1, 2014, the Operating Partnership redeemed 3,300 units held by a trust controlled by two members of the Board of Directors for a total of $25,621, pursuant to the terms of the partnership agreement. | |||||||||||||
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 Operating Partnership redeemed 10,000 units held by a trust controlled by two members of the Board of Directors for a total of $32,900 pursuant to the terms of the partnership agreement. | |||||||||||||
On August 1, 2012, the Operating Partnership redeemed 6,000 units held by a trust controlled by two members of the Board of Directors for a total of $21,540 pursuant to the terms of the partnership agreement. | |||||||||||||
On May 1, 2012, the Operating Partnership redeemed 6,000 units held by a trust controlled by two members of the Board of Directors for a total of $14,640 pursuant to the terms of the partnership agreement. | |||||||||||||
As of December 31, 2014 and 2013, the total number of Operating Partnership units outstanding was 13,121,759 and 13,038,125, respectively. | |||||||||||||
As of December 31, 2014 and 2013, the total number of outstanding units in the Operating Partnership not owned by the Company was 2,550,827 and 2,864,127, respectively, with a fair market value of approximately $19.1 million and approximately $17.0 million, respectively, based on the price per share of the common stock on such respective dates. | |||||||||||||
Warrants for Units in the Operating Partnership – The Operating Partnership has granted no warrants representing the right to purchase limited partnership units other than the Warrant described in Note 6. | |||||||||||||
Distributions – The following table presents the quarterly distributions by the Operating Partnership declared and payable per unit for the years ended December 31, 2014, 2013 and 2012: | |||||||||||||
Quarter Ended | 2012 | 2013 | 2014 | ||||||||||
March 31, | $ | 0.02 | $ | 0.035 | $ | 0.045 | |||||||
June 30, | $ | 0.02 | $ | 0.035 | $ | 0.05 | |||||||
September 30, | $ | 0.03 | $ | 0.04 | $ | 0.065 | |||||||
December 31, | $ | 0.03 | $ | 0.045 | $ | 0.065 |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 9. Related Party Transactions |
Chesapeake Hospitality. As of December 31, 2014, the members of Chesapeake Hospitality (a company that is majority-owned and controlled by the Company’s chief executive officer, its former chief financial officer, a member of its Board of Directors and a former member of its Board of Directors) owned 1,054,404 shares, approximately 10.0%, of the Company’s outstanding common stock as well as 1,642,958 Operating Partnership units. The following is a summary of the transactions between Chesapeake Hospitality and us: | |
Accounts Receivable – At December 31, 2014 and 2013, we were due $50,838 and $101,439, respectively, from Chesapeake Hospitality. | |
Shell Island Sublease – We had a sublease arrangement with Chesapeake Hospitality on our expired leasehold interests in the property at Shell Island. For the years ended December 31, 2014, 2013 and 2012, we earned $350,000, $350,000 and $350,000, respectively, in leasehold revenue. 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 Chesapeake Hospitality that provides in part for the referral of acquisition opportunities to the Company and the management of its hotels by Chesapeake Hospitality. The agreement expired on December 15, 2014, in conjunction with the execution of the new management agreement, | |
Management Agreements – Each of the hotels that we wholly-owned at December 31, 2014 and 2013, are operated by Chesapeake Hospitality under various management agreements that were to expire between December 2014 and March 2019. Under those agreements, Chesapeake Hospitality received a base management fee of 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. The agreements also provided for an incentive management fee due annually in arrears within 90 days of the end of the fiscal year equal to 10.0% of the amount by which the gross operating profit of the hotels, on an aggregate basis for eight hotels and on an individual basis for two other hotels, for a given year exceeds the gross operating profit for the same hotel(s), for the prior year. The incentive management fee may not exceed 0.25% of gross revenues of all of the hotel(s) included in the incentive fee calculation. The management agreement for the Crowne Plaza Houston Downtown did not provide for any incentive management fee. Additionally, the management agreement for the Georgian Terrace provided for an administrative fee of $30,000 per year for as long as the adjacent parking garage is managed by a third party. | |
On December 15, 2014, we entered into a new master agreement and a series of individual hotel management agreements. The master agreement has a five-year term, but may be extended for such additional periods as long as an individual management agreement remains in effect. The base management fee for the Crowne Plaza Houston Downtown and the Georgian Terrace will remain at 2.00% through 2015, increases to 2.25% in 2016 and increases to 2.50% thereafter. The base management fees for the remaining properties in the current portfolio will be 2.65% through 2017 and decreases to 2.50% thereafter. For new individual hotel management agreements, Chesapeake Hospitality will receive a base management fee of 2.00% of gross revenues for the first full year from the commencement date through the anniversary date, 2.25% of gross revenues the second full year, and 2.50% of gross revenues for every year thereafter. | |
Base management fees earned by Chesapeake Hospitality totaled $3,342,782, $2,652,070 and $2,602,018 for the years ended December 31, 2014, 2013 and 2012, respectively. In addition, incentive management fees of $97,025, $67,502 and $216,824 were accrued for the years ended December 31, 2014, 2013 and 2012, respectively. | |
Employee Medical Benefits – We purchase employee medical benefits through Maryland Hospitality, Inc. (d/b/a MHI Health), an affiliate of Chesapeake Hospitality for our employees as well as those employees that are employed by Chesapeake Hospitality that work exclusively for our hotel properties. Gross premiums for employee medical benefits paid by the Company (before offset of employee co-payments) were $3,748,587, $2,592,115 and $2,344,734 for the years ended December 31, 2014, 2013 and 2012, respectively. | |
Crowne Plaza Hollywood Beach Resort. As of December 31, 2014, we own a 25% 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 Chesapeake Hospitality to operate the hotel under a management contract. The following is a summary of the transactions between Crowne Plaza Hollywood Beach Resort and us: | |
Accounts Receivable – At December 31, 2014 and 2013, we were due $146,836 and $108,507, respectively, from Crowne Plaza Hollywood Beach Resort. | |
Management Agreement – Crowne Plaza Hollywood Beach Resort is operated by Chesapeake Hospitality under a management agreement that is set to expire August 2017. Under this agreement Chesapeake Hospitality received a base management fee of 3.0% of gross revenues. Base management fees earned by Chesapeake Hospitality totaled $592,119, $560,847 and $508,421 for the years ended December 31, 2014, 2013 and 2012, respectively. | |
Asset Management Fee – Also, under an asset management agreement, MHI Hospitality TRS II, LLC, an indirect subsidiary of the Company, receives a fee of 1.50% of total revenue which is due on a quarterly basis for services rendered. Asset management fees for the years ended December 31, 2014, 2013 and 2012 were $300,607, $280,274 and $255,707, respectively. Unpaid asset management fees included in accounts payable and accrued liabilities at December 31, 2014, 2013 and 2012 totaled $73,278, $74,464 and $20,229, respectively | |
Redemption of Units in Operating Partnership – During 2014, we redeemed a total of 3,300 units in its Operating Partnership held by a trust controlled by one current member of our Board of Directors for a total of $25,621 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 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. | |
Bridge Financing Amendments. On December 21, 2011, the Company entered into an amendment to its $10.0 million bridge loan agreement with Essex Equity High Income Joint Investment Vehicle, LLC, an affiliate of Essex Equity Capital Management, LLC, of which one former member of the board of directors is a Managing Director, to extend the lender’s loan commitment by 17 months through May 31, 2013. | |
On June 15, 2012, the Company entered into an amendment of its then-existing Bridge Financing that provided, subject to a $1.5 million prepayment which the Company made on June 18, 2012, that the amount of undrawn term loan commitments be increased to $7.0 million, of which $2.0 million was reserved to repay principal amounts outstanding on the Crowne Plaza Jacksonville Riverfront hotel property. The Company’s ability to borrow under the Bridge Financing ended May 31, 2013. | |
Essex Warrant Amendment. On December 21, 2011, the Company also amended the terms of the outstanding Essex Warrant. Pursuant to the Essex Warrant amendment, the exercise price per share of common stock covered by the Essex Warrant will be adjusted from time to time in the event of cash dividends upon common stock by deducting from such exercise price the per share amount of such cash dividends. | |
Modified Excepted Holder. On July 10, 2012, the Company amended the terms of the outstanding Essex Warrant by establishing a modified excepted holder limit (as defined in the Company’s Articles of Amendment and Restatement) for the Investors. | |
On December 23, 2013, the Company’s board of directors terminated and extinguished the excepted holder limit and excepted holder status for the Investors in connection with the redemption of the Essex Warrant. | |
Preferred Stock Redemptions. On June 15, 2012, the Company entered into an agreement with the holders of the Company’s Preferred Stock to redeem approximately 11,514 shares of Preferred Stock for an aggregate redemption price of approximately $12.3 million plus the payment of related accrued and unpaid cash and stock dividends. | |
On June 18, 2012, we used a portion of the proceeds of the mortgage on the Crowne Plaza Tampa Westshore to make a special distribution by the Operating Partnership to the Company to redeem the 11,514 shares of Preferred Stock for an aggregate redemption price of $12.3 million plus payment of related accrued and unpaid cash and stock dividends. The redemption resulted in a prepayment fee of approximately $0.8 million. | |
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 8% 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. | |
Others. On June 24, 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. On October 2, 2014, we hired Andrew M. Sims Jr., the son of our Chief Executive Officer, as a brand manager. Compensation for the years ended December 31, 2014 and 2013 totaled approximately $204,000 and $94,000, respectively, for all individuals. |
Retirement_Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Plans | 10. Retirement Plans |
We began a 401(k) plan for qualified employees on April 1, 2006. The plan is subject to “safe harbor” provisions which require 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” provisions. Contributions to the plan for the years ended December 31, 2014, 2013 and 2012 were $40,586, $47,094 and $54,865, respectively. |
Unconsolidated_Joint_Venture
Unconsolidated Joint Venture | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||
Unconsolidated Joint Venture | 11. Unconsolidated Joint Venture | ||||||||
We own a 25% 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 Chesapeake Hospitality to operate the hotel under a management contract. 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: | |||||||||
December 31, 2014 | December 31, 2013 | ||||||||
ASSETS | |||||||||
Investment in hotel property, net | $ | 62,823,142 | $ | 64,449,892 | |||||
Cash and cash equivalents | 2,153,906 | 2,780,427 | |||||||
Restricted cash | 874,111 | 116,414 | |||||||
Accounts receivable | 328,755 | 304,687 | |||||||
Prepaid expenses, inventory and other assets | 1,489,479 | 1,567,372 | |||||||
TOTAL ASSETS | $ | 67,669,393 | $ | 69,218,792 | |||||
LIABILITIES | |||||||||
Mortgage loan, net | $ | 57,000,000 | $ | 57,000,000 | |||||
Accounts payable and other accrued liabilities | 2,195,613 | 2,131,176 | |||||||
Accounts payable and other accrued liabilities, member | 146,836 | 108,507 | |||||||
Advance deposits | 398,695 | 280,339 | |||||||
TOTAL LIABILITIES | 59,741,144 | 59,520,022 | |||||||
TOTAL MEMBERS’ EQUITY | 7,928,249 | 9,698,770 | |||||||
TOTAL LIABILITIES AND MEMBERS’ EQUITY | $ | 67,669,393 | $ | 69,218,792 | |||||
Year Ended | Year Ended | ||||||||
December 31, 2014 | December 31, 2013 | ||||||||
Revenue | |||||||||
Rooms department | $ | 15,386,595 | $ | 14,732,609 | |||||
Food and beverage department | 2,968,395 | 2,506,852 | |||||||
Other operating departments | 1,385,469 | 1,445,446 | |||||||
Total revenue | 19,740,459 | 18,684,907 | |||||||
Expenses | |||||||||
Hotel operating expenses | |||||||||
Rooms department | 3,270,930 | 3,113,347 | |||||||
Food and beverage department | 2,270,918 | 1,983,090 | |||||||
Other operating departments | 655,818 | 580,150 | |||||||
Indirect | 7,436,198 | 7,093,576 | |||||||
Total hotel operating expenses | 13,633,864 | 12,770,163 | |||||||
Depreciation and amortization | 2,116,211 | 2,182,667 | |||||||
General and administrative | 148,873 | 119,338 | |||||||
Total operating expenses | 15,898,948 | 15,072,168 | |||||||
Operating income | 3,841,511 | 3,612,739 | |||||||
Interest expense | (2,612,032 | ) | (1,754,851 | ) | |||||
Loss on extinguishment of debt | — | (419,880 | ) | ||||||
Unrealized gain (loss) on hedging activities | — | 359,993 | |||||||
Net income (loss) | $ | 1,229,479 | $ | 1,798,001 | |||||
Indirect_Hotel_Operating_Expen
Indirect Hotel Operating Expenses | 12 Months Ended | ||||||||||||
Dec. 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: | |||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | |||||||||||
General and administrative | $ | 9,823,853 | $ | 7,258,817 | $ | 6,916,268 | |||||||
Sales and marketing | 9,788,079 | 7,497,693 | 7,143,116 | ||||||||||
Repairs and maintenance | 6,278,411 | 4,705,222 | 4,617,726 | ||||||||||
Utilities | 5,763,990 | 4,301,755 | 4,425,441 | ||||||||||
Franchise fees | 4,122,726 | 3,098,379 | 2,866,438 | ||||||||||
Management fees, including incentive | 3,439,807 | 2,719,573 | 2,818,842 | ||||||||||
Property taxes | 3,664,022 | 2,480,909 | 2,643,931 | ||||||||||
Insurance | 1,927,935 | 1,447,485 | 1,369,800 | ||||||||||
Other | 263,668 | 248,063 | 232,258 | ||||||||||
Total indirect hotel operating expenses | $ | 45,072,491 | $ | 33,757,896 | $ | 33,033,820 | |||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | 13. Income Taxes | ||||||||||||
The components of the provision for (benefit from) income taxes for the years ended December 31, 2014, 2013 and 2012 are as follows: | |||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | |||||||||||
Current: | |||||||||||||
Federal | $ | — | $ | 68,431 | $ | (30,467 | ) | ||||||
State and local | 233,940 | 57,476 | 2,461 | ||||||||||
233,940 | 125,907 | (28,006 | ) | ||||||||||
Deferred: | |||||||||||||
Federal | (1,718,351 | ) | 1,078,543 | 1,006,568 | |||||||||
State and local | (243,312 | ) | 291,646 | 267,835 | |||||||||
(1,961,663 | ) | 1,370,189 | 1,274,403 | ||||||||||
$ | (1,727,723 | ) | $ | 1,496,096 | $ | 1,246,397 | |||||||
A reconciliation of the statutory federal income tax provision (benefit) to the Company’s provision for (benefit from) income tax is as follows: | |||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Statutory federal income tax benefit | $ | (838,519 | ) | $ | (1,012,349 | ) | $ | (1,415,538 | ) | ||||
Effect of non-taxable REIT (income) loss | (898,576 | ) | 2,159,323 | 2,391,639 | |||||||||
State income tax provision | 9,372 | 349,122 | 270,296 | ||||||||||
$ | (1,727,723 | ) | $ | 1,496,096 | $ | 1,246,397 | |||||||
As of December 31, 2014 and 2013, we had a net deferred tax asset of approximately $3.5 million and $1.6 million, respectively, of which, approximately $2.7 million and $2.8 million, respectively, are due to accumulated net operating losses. These loss carryforwards will begin to expire in 2028 if not utilized. As of December 31, 2014 and 2013, approximately $0.2 and $0.3 million, respectively, of the deferred tax asset is attributable to our share of start-up expenses related to the Crowne Plaza Hollywood Beach Resort and start-up expenses related to the opening of the Sheraton Louisville Riverside and the Crowne Plaza Tampa Westshore, all of which were not deductible when incurred and are now being amortized over 15 years. The remainder of the deferred tax asset is attributable to year-to-year timing differences for 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. |
Loss_per_Share_and_per_Unit
Loss per Share and per Unit | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Loss per Share and per Unit | 14. Loss per Share and per Unit | ||||||||||||
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 partner 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. The effect of the allocation of net loss attributable to the limited partners’ interests by the issuance of dilutive shares has been excluded, since there would be an anti-dilutive effect from the pro forma dilution of the Essex Warrant discussed in Note 6 issued in April 2011. The computation of basic and diluted loss per share is presented below. | |||||||||||||
Year ended | Year ended | Year ended | |||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | |||||||||||
Numerator | |||||||||||||
Net loss attributable to the Company for basic and diluted computation | $ | (584,671 | ) | $ | (3,483,969 | ) | $ | (4,167,877 | ) | ||||
Denominator | |||||||||||||
Weighted average number of common shares outstanding | 10,377,125 | 10,156,955 | 9,995,638 | ||||||||||
Basic and diluted net loss per share | $ | (0.06 | ) | $ | (0.34 | ) | $ | (0.42 | ) | ||||
Loss Per Unit. The computation of basic and diluted loss per unit is presented below. | |||||||||||||
Year ended | Year ended | Year ended | |||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | |||||||||||
Numerator | |||||||||||||
Net loss | $ | (738,509 | ) | $ | (4,473,592 | ) | $ | (5,409,745 | ) | ||||
Denominator | |||||||||||||
Weighted average number of units outstanding | 13,107,413 | 13,042,020 | 12,973,953 | ||||||||||
Basic and diluted net loss per unit | $ | (0.06 | ) | $ | (0.34 | ) | $ | (0.42 | ) | ||||
Quarterly_Operating_Results_Un
Quarterly Operating Results (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Operating Results (Unaudited) | 15. Quarterly Operating Results (Unaudited) | ||||||||||||||||
Quarters Ended 2014 | |||||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||||
Total revenue | $ | 25,010,389 | $ | 36,339,701 | $ | 31,764,453 | $ | 29,825,377 | |||||||||
Total operating expenses | 22,249,394 | 29,120,620 | 28,622,841 | 30,441,730 | |||||||||||||
Net operating income (loss) | 2,760,995 | 7,219,081 | 3,141,612 | (616,353 | ) | ||||||||||||
Net income (loss) attributable to the Company | 783,002 | 2,166,689 | (214,902 | ) | (3,319,460 | ) | |||||||||||
Earnings (loss) per share – basic and diluted | 0.08 | 0.21 | (0.02 | ) | (0.32 | ) | |||||||||||
Quarters Ended 2013 | |||||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||||
(Restated) | |||||||||||||||||
Total revenue | $ | 20,189,812 | $ | 25,250,643 | $ | 21,458,637 | $ | 22,475,435 | |||||||||
Total operating expenses | 18,306,556 | 20,285,017 | 19,123,547 | 21,251,928 | |||||||||||||
Net operating income (loss) | 1,883,256 | 4,965,626 | 2,335,090 | 1,223,507 | |||||||||||||
Net income (loss) attributable to the Company | (2,594,916 | ) | 1,310,592 | (1,649,722 | ) | (549,923 | ) | ||||||||||
Earnings (loss) per share – basic | (0.26 | ) | 0.13 | (0.16 | ) | (0.05 | ) | ||||||||||
Earnings (loss) per share – diluted | (0.26 | ) | 0.12 | (0.16 | ) | (0.05 | ) |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. Subsequent Events |
On January 9, 2015, we paid a quarterly dividend (distribution) of $0.065 per common share (and unit) to those stockholders (and unitholders of the Operating Partnership) of record on December 15, 2014. | |
On January 12, 2015, we entered into a new employment agreement, effective as of January 1, 2015, between the Company and Andrew M. Sims, to serve as Chief Executive Officer and Chairman of the board of directors for the Company. | |
On January 28, 2015, we authorized payment of a quarterly dividend (distribution) of $0.07 per common share (and unit) to the stockholders (and unitholders of the Operating Partnership) of record as of March 13, 2015. The dividend (distribution) is to be paid on April 10, 2015. | |
On April 1, 2015, one holder of units in the Operating Partnership redeemed 100,000 units for an equivalent number of shares of the Company’s common stock. |
Schedule_III_Real_Estate_and_A
Schedule III - Real Estate and Accumulated Depreciation | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||
SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule III - Real Estate and Accumulated Depreciation | |||||||||||||||||||||||||||||||||||||||||||||||||
SOTHERLY HOTELS INC. | |||||||||||||||||||||||||||||||||||||||||||||||||
SOTHERLY HOTELS LP | |||||||||||||||||||||||||||||||||||||||||||||||||
SCHEDULE III—REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||||||||||||||||||||||||||||||||||||||||||||||
AS OF DECEMBER 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||
Initial Costs | Costs Capitalized | Gross Amount At End of Year | Accumulated | Date of | Date | Life on | |||||||||||||||||||||||||||||||||||||||||||
Subsequent to Acquisition | Depreciation | Construction | Acquired | Which | |||||||||||||||||||||||||||||||||||||||||||||
& Impairment | Depreciation | ||||||||||||||||||||||||||||||||||||||||||||||||
Description | Encum- | Land | Building & | Land | Building & | Land | Building & | Total | is Computed | ||||||||||||||||||||||||||||||||||||||||
brances | Improvements | Improvements | Improvements | ||||||||||||||||||||||||||||||||||||||||||||||
Crowne Plaza Hampton Marina – Hampton, Virginia | $ | 4,510 | $ | 1,061 | $ | 6,733 | $ | 33 | $ | 3,615 | $ | 1,094 | $ | 10,348 | $ | 11,442 | $ | (6,024 | ) | 1988 | 2008 | 3-39 years | |||||||||||||||||||||||||||
Crowne Plaza Houston Downtown – Houston, Texas | 20,955 | 7,374 | 22,185 | — | 1,038 | 7,374 | 23,223 | 30,597 | (762 | ) | 1963 | 2013 | 3-39 years | ||||||||||||||||||||||||||||||||||||
Crowne Plaza Jacksonville Riverfront – Jacksonville, Florida | 16,359 | 7,090 | 14,604 | 51 | 5,210 | 7,141 | 19,814 | 26,955 | (4,438 | ) | 1970 | 2005 | 3-39 years | ||||||||||||||||||||||||||||||||||||
Crowne Plaza Tampa Westshore – Tampa, Florida | 13,318 | 4,153 | 9,670 | 283 | 22,038 | 4,436 | 31,708 | 36,144 | (5,720 | ) | 1973 | 2007 | 3-39 years | ||||||||||||||||||||||||||||||||||||
DoubleTree by Hilton Philadelphia Airport – Philadelphia, Pennsylvania | 33,378 | 2,100 | 22,031 | 184 | 5,473 | 2,284 | 27,504 | 29,788 | (6,973 | ) | 1972 | 2004 | 3-39 years | ||||||||||||||||||||||||||||||||||||
DoubleTree by Hilton Brownstone – University – Raleigh, North Carolina | 15,274 | 815 | 7,416 | 203 | 4,993 | 1,018 | 12,409 | 13,427 | (3,816 | ) | 1971 | 2004 | 3-39 years | ||||||||||||||||||||||||||||||||||||
Georgian Terrace – Atlanta, Georgia | 41,500 | 10,128 | 45,386 | 308 | 880 | 10,436 | 46,266 | 56,702 | (895 | ) | 1911 | 2014 | 3-39 years | ||||||||||||||||||||||||||||||||||||
Hilton Savannah DeSoto – Savannah, Georgia | 21,050 | 600 | 13,562 | 14 | 11,392 | 614 | 24,954 | 25,568 | (7,109 | ) | 1968 | 2004 | 3-39 years | ||||||||||||||||||||||||||||||||||||
Hilton Wilmington Riverside – Wilmington, North Carolina | 20,389 | 785 | 16,829 | 222 | 10,793 | 1,007 | 27,622 | 28,629 | (9,638 | ) | 1970 | 2004 | 3-39 years | ||||||||||||||||||||||||||||||||||||
Holiday Inn Laurel West – Laurel, Maryland | 6,974 | 900 | 9,443 | 187 | 2,567 | 1,087 | 12,010 | 13,097 | (3,637 | ) | 1985 | 2004 | 3-39 years | ||||||||||||||||||||||||||||||||||||
Sheraton Louisville Riverside – Jeffersonville, Indiana | 11,585 | 782 | 6,891 | 210 | 14,595 | 992 | 21,486 | 22,478 | (4,221 | ) | 1972 | 2006 | 3-39 years | ||||||||||||||||||||||||||||||||||||
$ | 205,292 | $ | 35,788 | $ | 174,750 | $ | 1,695 | $ | 82,594 | $ | 37,483 | $ | 257,344 | $ | 294,827 | $ | (53,233 | ) | |||||||||||||||||||||||||||||||
RECONCILIATION OF REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||||||||||||||||||||||||||||||||||||||||||||||
RECONCILIATION OF REAL ESTATE | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 198,959 | |||||||||||||||||||||||||||||||||||||||||||||||
Improvements | 1,807 | ||||||||||||||||||||||||||||||||||||||||||||||||
Disposal of Assets | (127 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 200,639 | |||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | 29,559 | ||||||||||||||||||||||||||||||||||||||||||||||||
Improvements | 3,290 | ||||||||||||||||||||||||||||||||||||||||||||||||
Disposal of Assets | (428 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 233,060 | |||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | 55,514 | ||||||||||||||||||||||||||||||||||||||||||||||||
Improvements | 6,430 | ||||||||||||||||||||||||||||||||||||||||||||||||
Disposal of Assets | (177 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2014 | $ | 294,827 | |||||||||||||||||||||||||||||||||||||||||||||||
RECONCILIATION OF ACCUMULATED DEPRECIATION | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 31,304 | |||||||||||||||||||||||||||||||||||||||||||||||
Current Expense | 5,500 | ||||||||||||||||||||||||||||||||||||||||||||||||
Disposal of Assets | (127 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 36,677 | |||||||||||||||||||||||||||||||||||||||||||||||
Current Expense | 5,604 | ||||||||||||||||||||||||||||||||||||||||||||||||
Impairment | 611 | ||||||||||||||||||||||||||||||||||||||||||||||||
Disposal of Assets | (335 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 42,557 | |||||||||||||||||||||||||||||||||||||||||||||||
Current Expense | 7,602 | ||||||||||||||||||||||||||||||||||||||||||||||||
Impairment | 3,175 | ||||||||||||||||||||||||||||||||||||||||||||||||
Disposal of Assets | (101 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2014 | $ | 53,233 | |||||||||||||||||||||||||||||||||||||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 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. | ||||||||||||||||||||||||
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. | |||||||||||||||||||||||||
Our review of possible impairment at one of our hotel properties revealed an excess of current carrying cost over the estimated undiscounted future cash flows, which was triggered by a combination of a change in anticipated use and future branding of the property; and a re-evaluation of future revenues based on anticipated market conditions, market penetration and costs necessary to achieve such market penetration, resulting in an impairment of approximately $3.2 million and $0.6 million, as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||
Assets Held For Sale | Assets Held For Sale – The Company records assets as held for sale when management has committed to a plan to sell the assets, actively seeks a buyer for the assets, and the consummation of the sale is considered probable and is expected within one year | ||||||||||||||||||||||||
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 Chesapeake Hospitality 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 annual 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 and previously existing line of credit. | ||||||||||||||||||||||||
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 unamortized franchise fees as of December 31, 2014 and 2013 were approximately $394,139 and $196,989, respectively. Amortization expense for the years ended December 31, 2014, 2013 and 2012 was $50,908, $49,658 and $43,500, respectively. | ||||||||||||||||||||||||
Deferred Financing and Offering Costs | Deferred Financing and Offering Costs – Deferred financing costs are recorded at cost and consist of loan fees and other costs incurred in issuing debt. Deferred offering costs are recorded at cost and consist of offering fees and other costs incurred in issuing equity and are reflected in prepaid expenses, inventory and other assets on the consolidated balance sheets. 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. Amortization of deferred offering costs occurs when the equity offering is complete, whereby the costs are offset against the equity funds raised in the future and included in additional paid in capital on the consolidated balance sheets, or if the offering expires and the offering costs exceed the funds raised in the offering then the excess will be included in corporate general and administrative expenses 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 our then-existing credit agreement and acted as a cash flow hedge involving the receipts of variable-rate amounts from a counterparty in exchange for our making fixed-rate payments without exchange of the underlying principal amount. We valued our 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 mortgage loans and unsecured notes measured at fair value and the basis for that measurement: | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Investment in hotel property, net(1) | $ | — | $ | — | $ | 10,011,647 | |||||||||||||||||||
Mortgage loans(2) | $ | — | $ | (162,841,165 | ) | $ | — | ||||||||||||||||||
Unsecured notes(3) | $ | (28,770,240 | ) | $ | — | $ | — | ||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Investment in hotel property, net(1) | $ | — | $ | — | $ | 6,396,787 | |||||||||||||||||||
Mortgage loans(2) | $ | — | $ | (209,994,659 | ) | $ | — | ||||||||||||||||||
Unsecured notes(3) | $ | (53,816,320 | ) | $ | — | $ | — | ||||||||||||||||||
-1 | A non-recurring fair value measurement was conducted in both 2013 and 2014 for our investment in hotel property, which resulted in impairment charges for the years ended December 31, 2014 and 2013, which represent the amounts by which the carrying value of the asset group exceeded its fair value. | ||||||||||||||||||||||||
-2 | Mortgage loans are reflected at carrying value on our Consolidated Balance Sheet as of December 31, 2014 and December 31, 2013. | ||||||||||||||||||||||||
-3 | Unsecured notes are recorded at historical cost on our Consolidated Balance Sheet as of December 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. | ||||||||||||||||||||||||
Lease Revenue | Lease Revenue – Several of our properties generate revenue from leasing commercial space adjacent to the hotel, the restaurant space within the hotel, apartment units and space on the roofs of our hotels for antennas and satellite dishes. We account for the lease income as revenue from other operating departments within the statement of consolidated operations pursuant to the terms of each lease. Lease revenue was approximately $1.7 million, $1.7 and $1.6 million, for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||
A schedule of minimum future lease payments receivable for the following twelve-month periods is as follows: | |||||||||||||||||||||||||
December 31, 2015 | $ | 1,206,269 | |||||||||||||||||||||||
December 31, 2016 | 1,034,209 | ||||||||||||||||||||||||
December 31, 2017 | 643,123 | ||||||||||||||||||||||||
December 31, 2018 | 202,615 | ||||||||||||||||||||||||
December 31, 2019 | 159,520 | ||||||||||||||||||||||||
December 31, 2020 and thereafter | 619,780 | ||||||||||||||||||||||||
Total | $ | 3,865,516 | |||||||||||||||||||||||
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 December 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 December 31, 2014, the tax years that remain subject to examination by the major tax jurisdictions to which the Company is subject generally include 2010 through 2014. In addition, as of December 31, 2014, the tax years that remain subject to examination by the major tax jurisdictions to which MHI TRS is subject generally include 2004 through 2013. | |||||||||||||||||||||||||
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 18,000 shares issued to the Chief Financial Officer upon execution of his employment contract which will vest pro rata on each of the next three 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. The 2004 plan was terminated in 2013. | |||||||||||||||||||||||||
Under the 2013 Plan, the Company has made stock awards totaling 72,850 shares, including 50,350 non-restricted shares to certain executives and employees and 22,500 restricted shares issued to its independent directors. All awards have vested except for 9,750 shares issued to the Company’s independent directors in January 2015, 750 of which will vest on April 27, 2015 and 9,000 of which will vest on December 31, 2015. | |||||||||||||||||||||||||
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. The value of the awards is charged to compensation expense on a straight-line basis over the vesting or service period based on the value of the award as determined by the Company’s stock price on the date of grant or issuance. As of December 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 years ended December 31, 2014, 2013 and 2012 was $292,405, $323,800 and $110,400, respectively. The 2004 Plan was terminated in April 2013. | |||||||||||||||||||||||||
Advertising | Advertising – Advertising costs were $198,991, $181,886 and $186,963 for the years ended December 31, 2014, 2013 and 2012, respectively and are expensed as incurred. | ||||||||||||||||||||||||
Comprehensive Income (Loss) | Comprehensive Income (Loss) – Comprehensive income (loss), as defined, 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 and Immaterial Restatements | Reclassifications and Immaterial Restatements– Certain revisions have been made to the prior period balances to correct immaterial errors. These immaterial corrections include adjustments to unreimbursed diesel spill clean-up costs impacting accounts receivable, accruals of prior period bonuses and franchise fees, and classification of impairment charges (from other expenses to operating expenses) among others. The immaterial restatements have been made in the following accounts, as of December 31, 2013 and for the years ended December 31, 2013 and 2012 | ||||||||||||||||||||||||
2013 | Immaterial | 2013 Restated | |||||||||||||||||||||||
As Previously | Restatement & | ||||||||||||||||||||||||
Reported | Reclassifications | ||||||||||||||||||||||||
Inc/(Dec) | |||||||||||||||||||||||||
Accounts affected by the immaterial restatement and reclassifications on consolidated balance sheets: | |||||||||||||||||||||||||
Investment in joint venture | $ | 2,446,039 | $ | (21,302 | ) | $ | 2,424,737 | ||||||||||||||||||
Accounts receivable, net | 1,982,091 | (170,065 | ) | 1,812,026 | |||||||||||||||||||||
Accounts receivable – affiliate and joint venture | 101,439 | 108,508 | 209,947 | ||||||||||||||||||||||
Prepaid expenses, inventory and other assets | 2,444,975 | (183,672 | ) | 2,261,303 | |||||||||||||||||||||
Deferred income taxes | 1,186,122 | 395,510 | 1,581,632 | ||||||||||||||||||||||
Total assets | 228,040,102 | 128,979 | 228,169,081 | ||||||||||||||||||||||
Account payable and accrued liabilities | 7,650,219 | 445,563 | 8,095,782 | ||||||||||||||||||||||
Total liabilities | 196,868,723 | 445,563 | 197,314,286 | ||||||||||||||||||||||
Distributions in excess of retained earnings | (32,210,917 | ) | (239,856 | ) | (32,450,773 | ) | |||||||||||||||||||
Noncontrolling interest | 5,746,114 | (76,728 | ) | 5,669,386 | |||||||||||||||||||||
Total equity | 31,171,379 | (316,584 | ) | 30,854,795 | |||||||||||||||||||||
Total liabilities and equity | 228,040,102 | 128,979 | 228,169,081 | ||||||||||||||||||||||
2013 | Immaterial | 2013 Restated | 2012 | Immaterial | 2012 | ||||||||||||||||||||
As Previously | Restatement | As Previously | Restatement | Restated | |||||||||||||||||||||
Reported | Inc/(Dec) | Reported | Inc/(Dec) | ||||||||||||||||||||||
Accounts affected by the immaterial restatement on consolidated statements of operations: | |||||||||||||||||||||||||
Total hotel operating expenses | 65,468,944 | 59,293 | 65,528,237 | 64,297,743 | 142,832 | 64,440,575 | |||||||||||||||||||
Equity income of joint venture | 453,700 | (4,200 | ) | 449,500 | 172,172 | 5,966 | 178,138 | ||||||||||||||||||
Income tax provision | (1,521,182 | ) | 25,086 | (1,496,096 | ) | (1,301,229 | ) | 54,832 | (1,246,397 | ) | |||||||||||||||
Net loss | (4,435,185 | ) | (38,407 | ) | (4,473,592 | ) | (5,327,711 | ) | (82,034 | ) | (5,409,745 | ) | |||||||||||||
Net loss attributable to the noncontrolling interest | 981,126 | 8,497 | 989,623 | 1,223,036 | 18,832 | 1,241,868 | |||||||||||||||||||
Net loss attributable to the Company | (3,454,059 | ) | (29,910 | ) | (3,483,969 | ) | (4,104,675 | ) | (63,202 | ) | (4,167,877 | ) | |||||||||||||
New Accounting Pronouncements | New Accounting Pronouncements – In February 2015, the FASB issued Accounting Standards Update (“ASU”) 2015-02 related to ASC Topic 810, Consolidation. The amendments in this update affect reporting entities that are required to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. Specifically, the amendments: 1. Modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities; 2. Eliminate the presumption that a general partner should consolidate a limited partnership; 3. Affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; 4. Provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. This guidance will be effective for annual reporting periods beginning after December 15, 2017. We do not expect this ASU to have an impact on the Company’s consolidated financial position, results of operations or cash flows. | ||||||||||||||||||||||||
In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09 related to ASC Topic 606, Revenue from Contracts with Customers. The guidance in this update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The guidance in this update supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance throughout the Industry Topics of the Codification. Additionally, this update supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition—Construction-Type and Production-Type Contracts. In addition, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer (for example, assets within the scope of Topic 360,Property, Plant, and Equipment, and intangible assets within the scope of Topic 350, Intangibles—Goodwill and Other) are amended to be consistent with the guidance on recognition and measurement (including the constraint on revenue) in this update. As issued, this ASU is not effective until annual reporting periods beginning after December 15, 2016, however at its April 1, 2015 meeting, the FASB tentatively decided to defer the effective date of ASU 2014-09 such that it would be effective for annual reporting periods beginning after December 15, 2017. We do not expect this ASU to have an impact on the Company’s consolidated financial position, results of operations or cash flows. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||
Derivative Instruments and Mortgage Debt Measured at Fair Value | 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 mortgage loans and unsecured notes measured at fair value and the basis for that measurement: | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Investment in hotel property, net(1) | $ | — | $ | — | $ | 10,011,647 | |||||||||||||||||||
Mortgage loans(2) | $ | — | $ | (162,841,165 | ) | $ | — | ||||||||||||||||||
Unsecured notes(3) | $ | (28,770,240 | ) | $ | — | $ | — | ||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Investment in hotel property, net(1) | $ | — | $ | — | $ | 6,396,787 | |||||||||||||||||||
Mortgage loans(2) | $ | — | $ | (209,994,659 | ) | $ | — | ||||||||||||||||||
Unsecured notes(3) | $ | (53,816,320 | ) | $ | — | $ | — | ||||||||||||||||||
-1 | A non-recurring fair value measurement was conducted in both 2013 and 2014 for our investment in hotel property, which resulted in impairment charges for the years ended December 31, 2014 and 2013, which represent the amounts by which the carrying value of the asset group exceeded its fair value. | ||||||||||||||||||||||||
-2 | Mortgage loans are reflected at carrying value on our Consolidated Balance Sheet as of December 31, 2014 and December 31, 2013. | ||||||||||||||||||||||||
-3 | Unsecured notes are recorded at historical cost on our Consolidated Balance Sheet as of December 31, 2014 and December 31, 2013. | ||||||||||||||||||||||||
Schedule of Minimum Future Lease Payments Receivable | A schedule of minimum future lease payments receivable for the following twelve-month periods is as follows: | ||||||||||||||||||||||||
December 31, 2015 | $ | 1,206,269 | |||||||||||||||||||||||
December 31, 2016 | 1,034,209 | ||||||||||||||||||||||||
December 31, 2017 | 643,123 | ||||||||||||||||||||||||
December 31, 2018 | 202,615 | ||||||||||||||||||||||||
December 31, 2019 | 159,520 | ||||||||||||||||||||||||
December 31, 2020 and thereafter | 619,780 | ||||||||||||||||||||||||
Total | $ | 3,865,516 | |||||||||||||||||||||||
Schedule of Reclassifications and Immaterial Restatements | The immaterial restatements have been made in the following accounts, as of December 31, 2013 and for the years ended December 31, 2013 and 2012: | ||||||||||||||||||||||||
2013 | Immaterial | 2013 Restated | |||||||||||||||||||||||
As Previously | Restatement & | ||||||||||||||||||||||||
Reported | Reclassifications | ||||||||||||||||||||||||
Inc/(Dec) | |||||||||||||||||||||||||
Accounts affected by the immaterial restatement and reclassifications on consolidated balance sheets: | |||||||||||||||||||||||||
Investment in joint venture | $ | 2,446,039 | $ | (21,302 | ) | $ | 2,424,737 | ||||||||||||||||||
Accounts receivable, net | 1,982,091 | (170,065 | ) | 1,812,026 | |||||||||||||||||||||
Accounts receivable – affiliate and joint venture | 101,439 | 108,508 | 209,947 | ||||||||||||||||||||||
Prepaid expenses, inventory and other assets | 2,444,975 | (183,672 | ) | 2,261,303 | |||||||||||||||||||||
Deferred income taxes | 1,186,122 | 395,510 | 1,581,632 | ||||||||||||||||||||||
Total assets | 228,040,102 | 128,979 | 228,169,081 | ||||||||||||||||||||||
Account payable and accrued liabilities | 7,650,219 | 445,563 | 8,095,782 | ||||||||||||||||||||||
Total liabilities | 196,868,723 | 445,563 | 197,314,286 | ||||||||||||||||||||||
Distributions in excess of retained earnings | (32,210,917 | ) | (239,856 | ) | (32,450,773 | ) | |||||||||||||||||||
Noncontrolling interest | 5,746,114 | (76,728 | ) | 5,669,386 | |||||||||||||||||||||
Total equity | 31,171,379 | (316,584 | ) | 30,854,795 | |||||||||||||||||||||
Total liabilities and equity | 228,040,102 | 128,979 | 228,169,081 | ||||||||||||||||||||||
2013 | Immaterial | 2013 Restated | 2012 | Immaterial | 2012 | ||||||||||||||||||||
As Previously | Restatement | As Previously | Restatement | Restated | |||||||||||||||||||||
Reported | Inc/(Dec) | Reported | Inc/(Dec) | ||||||||||||||||||||||
Accounts affected by the immaterial restatement on consolidated statements of operations: | |||||||||||||||||||||||||
Total hotel operating expenses | 65,468,944 | 59,293 | 65,528,237 | 64,297,743 | 142,832 | 64,440,575 | |||||||||||||||||||
Equity income of joint venture | 453,700 | (4,200 | ) | 449,500 | 172,172 | 5,966 | 178,138 | ||||||||||||||||||
Income tax provision | (1,521,182 | ) | 25,086 | (1,496,096 | ) | (1,301,229 | ) | 54,832 | (1,246,397 | ) | |||||||||||||||
Net loss | (4,435,185 | ) | (38,407 | ) | (4,473,592 | ) | (5,327,711 | ) | (82,034 | ) | (5,409,745 | ) | |||||||||||||
Net loss attributable to the noncontrolling interest | 981,126 | 8,497 | 989,623 | 1,223,036 | 18,832 | 1,241,868 | |||||||||||||||||||
Net loss attributable to the Company | (3,454,059 | ) | (29,910 | ) | (3,483,969 | ) | (4,104,675 | ) | (63,202 | ) | (4,167,877 | ) |
Acquisition_of_Hotel_Propertie1
Acquisition of Hotel Properties (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Business Combinations [Abstract] | |||||||||
Allocation of Purchase Price Based on Fair Values | The allocation of the purchase price based on their fair values was as follows: | ||||||||
Crowne Plaza Houston | Georgian Terrace | ||||||||
Land and land improvements | $ | 7,373,937 | $ | 10,127,687 | |||||
Buildings and improvements | 22,184,692 | 45,385,939 | |||||||
Furniture, fixtures and equipment | 718,828 | 5,163,135 | |||||||
Investment in hotel properties | 30,277,457 | 60,676,761 | |||||||
Restricted cash | — | 124,658 | |||||||
Accounts receivable | 391,470 | 465,287 | |||||||
Accounts receivable-affiliate | 72,094 | — | |||||||
Prepaid expenses, inventory and other assets | 83,378 | 232,415 | |||||||
Intangible assets | 761,212 | 198,583 | |||||||
Accounts payable and accrued liabilities | (631,847 | ) | (126,747 | ) | |||||
Advance deposits | (74,169 | ) | (464,872 | ) | |||||
$ | 30,879,595 | $ | 61,106,085 | ||||||
Issuance of units | (153,636 | ) | — | ||||||
Net cash | $ | 30,725,959 | $ | 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: | ||||||||
2014 | 2013 | ||||||||
(unaudited) | (unaudited) | ||||||||
Pro forma revenues | $ | 127,710,583 | $ | 121,678,207 | |||||
Pro forma operating expenses | 117,286,682 | 106,883,934 | |||||||
Pro forma operating income | 10,423,901 | 14,794,273 | |||||||
Pro forma net loss | (2,959,101 | ) | (4,089,813 | ) | |||||
Pro forma loss per basic and diluted share and unit | (0.29 | ) | (0.40 | ) | |||||
Pro forma basic and diluted common shares | 10,377,125 | 10,156,955 | |||||||
Investment_in_Hotel_Properties1
Investment in Hotel Properties (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Real Estate [Abstract] | |||||||||
Schedule of Hotel Properties | Investment in hotel properties as of December 31, 2014 and 2013 consisted of the following: | ||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Land and land improvements | $ | 37,483,400 | $ | 26,956,311 | |||||
Buildings and improvements | 257,343,516 | 206,101,663 | |||||||
Furniture, fixtures and equipment | 38,762,997 | 29,829,908 | |||||||
333,589,913 | 262,887,882 | ||||||||
Less: accumulated depreciation and impairment | (73,397,760 | ) | (60,242,249 | ) | |||||
$ | 260,192,153 | $ | 202,645,633 | ||||||
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 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 | December 31, | December 31, | Penalties | Date | Provisions | ||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Crowne Plaza Hampton Marina | $ | 4,509,500 | $ | 5,903,500 | None | 6/30/16 | $ | 83,000 | (1) | 5 | %(2) | ||||||||||||
Crowne Plaza Houston Downtown | 20,954,867 | 21,428,258 | Yes(3) | 4/12/16 | (4) | 25 years | 4.5 | % | |||||||||||||||
Crowne Plaza Jacksonville Riverfront | 16,358,706 | 13,756,209 | None | 7/10/15 | (5) | 25 years | LIBOR plus 3.00 | % | |||||||||||||||
Crowne Plaza Tampa Westshore | 13,317,684 | 13,602,701 | None | 6/18/17 | 25 years | 5.6 | % | ||||||||||||||||
DoubleTree by Hilton Philadelphia Airport | 33,378,102 | 28,731,151 | None | 4/1/19 | 25 years | LIBOR plus 3.00 | %(7) | ||||||||||||||||
DoubleTree by Hilton Raleigh Brownstone – University | 15,274,284 | 15,525,626 | -6 | 8/1/18 | 30 years | 4.78 | % | ||||||||||||||||
Georgian Terrace | 41,500,000 | — | None | 3/27/17 | (8) | 25 years | LIBOR plus 3.75 | %(9) | |||||||||||||||
Hilton Savannah DeSoto | 21,050,093 | 21,546,423 | Yes(10) | 9/1/17 | 25 years | 6.06 | % | ||||||||||||||||
Hilton Wilmington Riverside | 20,389,325 | 20,919,030 | Yes(10) | 4/1/17 | 25 years | 6.21 | % | ||||||||||||||||
Holiday Inn Laurel West | 6,974,458 | 7,141,845 | Yes(11) | 8/5/21 | 25 years | 5.25 | %(12) | ||||||||||||||||
Sheraton Louisville Riverside | 11,584,638 | 11,808,806 | -6 | 1/6/17 | 25 years | 6.24 | % | ||||||||||||||||
Total | $ | 205,291,657 | $ | 160,363,549 | |||||||||||||||||||
-1 | The Operating Partnership is required to make monthly principal payments of $83,000. | ||||||||||||||||||||||
-2 | The note rate was changed to a fixed rate of 5.00%, effective June 27, 2014. | ||||||||||||||||||||||
-3 | The note is subject to a prepayment penalty if the loan is prepaid in full or in part prior to November 13, 2015. | ||||||||||||||||||||||
-4 | The note provides that the mortgage can be extended until November 2018 if certain conditions have been satisfied. | ||||||||||||||||||||||
-5 | The note provides that the mortgage can be extended until July 2016 if certain conditions have been satisfied. | ||||||||||||||||||||||
-6 | With limited exception, the note may not be prepaid until two months before maturity. | ||||||||||||||||||||||
-7 | The note bears a minimum interest rate of 3.50%. | ||||||||||||||||||||||
-8 | 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. | ||||||||||||||||||||||
-9 | The note bears a minimum interest rate of 4.00%. | ||||||||||||||||||||||
-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%. | ||||||||||||||||||||||
Schedule of Future Mortgage Debt Maturities | Total future mortgage debt maturities, without respect to any extension of loan maturity, as of December 31, 2014 were as follows: | ||||||||||||||||||||||
December 31, 2015 | $ | 21,477,897 | |||||||||||||||||||||
December 31, 2016 | 27,874,371 | ||||||||||||||||||||||
December 31, 2017 | 104,751,035 | ||||||||||||||||||||||
December 31, 2018 | 15,824,365 | ||||||||||||||||||||||
December 31, 2019 | 29,372,341 | ||||||||||||||||||||||
December 31, 2020 and thereafter | 5,991,648 | ||||||||||||||||||||||
Total future maturities | $ | 205,291,657 | |||||||||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 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: | ||||
December 31, 2015 | $ | 432,053 | |||
December 31, 2016 | 361,822 | ||||
December 31, 2017 | 244,244 | ||||
December 31, 2018 | 176,741 | ||||
December 31, 2019 | 100,480 | ||||
December 31, 2020 and thereafter | 636,547 | ||||
Total | $ | 1,951,887 | |||
Equity_Tables
Equity (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity [Abstract] | |||||||||||||
Quarterly Distributions Declared and Payable by Operating Partnership | Distributions – The following table presents the quarterly distributions by the Operating Partnership declared and payable per unit for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||
Quarter Ended | 2012 | 2013 | 2014 | ||||||||||
March 31, | $ | 0.02 | $ | 0.035 | $ | 0.045 | |||||||
June 30, | $ | 0.02 | $ | 0.035 | $ | 0.05 | |||||||
September 30, | $ | 0.03 | $ | 0.04 | $ | 0.065 | |||||||
December 31, | $ | 0.03 | $ | 0.045 | $ | 0.065 |
Unconsolidated_Joint_Venture_T
Unconsolidated Joint Venture (Tables) | 12 Months Ended | ||||||||
Dec. 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: | ||||||||
December 31, 2014 | December 31, 2013 | ||||||||
ASSETS | |||||||||
Investment in hotel property, net | $ | 62,823,142 | $ | 64,449,892 | |||||
Cash and cash equivalents | 2,153,906 | 2,780,427 | |||||||
Restricted cash | 874,111 | 116,414 | |||||||
Accounts receivable | 328,755 | 304,687 | |||||||
Prepaid expenses, inventory and other assets | 1,489,479 | 1,567,372 | |||||||
TOTAL ASSETS | $ | 67,669,393 | $ | 69,218,792 | |||||
LIABILITIES | |||||||||
Mortgage loan, net | $ | 57,000,000 | $ | 57,000,000 | |||||
Accounts payable and other accrued liabilities | 2,195,613 | 2,131,176 | |||||||
Accounts payable and other accrued liabilities, member | 146,836 | 108,507 | |||||||
Advance deposits | 398,695 | 280,339 | |||||||
TOTAL LIABILITIES | 59,741,144 | 59,520,022 | |||||||
TOTAL MEMBERS’ EQUITY | 7,928,249 | 9,698,770 | |||||||
TOTAL LIABILITIES AND MEMBERS’ EQUITY | $ | 67,669,393 | $ | 69,218,792 | |||||
Year Ended | Year Ended | ||||||||
December 31, 2014 | December 31, 2013 | ||||||||
Revenue | |||||||||
Rooms department | $ | 15,386,595 | $ | 14,732,609 | |||||
Food and beverage department | 2,968,395 | 2,506,852 | |||||||
Other operating departments | 1,385,469 | 1,445,446 | |||||||
Total revenue | 19,740,459 | 18,684,907 | |||||||
Expenses | |||||||||
Hotel operating expenses | |||||||||
Rooms department | 3,270,930 | 3,113,347 | |||||||
Food and beverage department | 2,270,918 | 1,983,090 | |||||||
Other operating departments | 655,818 | 580,150 | |||||||
Indirect | 7,436,198 | 7,093,576 | |||||||
Total hotel operating expenses | 13,633,864 | 12,770,163 | |||||||
Depreciation and amortization | 2,116,211 | 2,182,667 | |||||||
General and administrative | 148,873 | 119,338 | |||||||
Total operating expenses | 15,898,948 | 15,072,168 | |||||||
Operating income | 3,841,511 | 3,612,739 | |||||||
Interest expense | (2,612,032 | ) | (1,754,851 | ) | |||||
Loss on extinguishment of debt | — | (419,880 | ) | ||||||
Unrealized gain (loss) on hedging activities | — | 359,993 | |||||||
Net income (loss) | $ | 1,229,479 | $ | 1,798,001 | |||||
Indirect_Hotel_Operating_Expen1
Indirect Hotel Operating Expenses (Tables) | 12 Months Ended | ||||||||||||
Dec. 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: | ||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | |||||||||||
General and administrative | $ | 9,823,853 | $ | 7,258,817 | $ | 6,916,268 | |||||||
Sales and marketing | 9,788,079 | 7,497,693 | 7,143,116 | ||||||||||
Repairs and maintenance | 6,278,411 | 4,705,222 | 4,617,726 | ||||||||||
Utilities | 5,763,990 | 4,301,755 | 4,425,441 | ||||||||||
Franchise fees | 4,122,726 | 3,098,379 | 2,866,438 | ||||||||||
Management fees, including incentive | 3,439,807 | 2,719,573 | 2,818,842 | ||||||||||
Property taxes | 3,664,022 | 2,480,909 | 2,643,931 | ||||||||||
Insurance | 1,927,935 | 1,447,485 | 1,369,800 | ||||||||||
Other | 263,668 | 248,063 | 232,258 | ||||||||||
Total indirect hotel operating expenses | $ | 45,072,491 | $ | 33,757,896 | $ | 33,033,820 | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Components of Provision for (Benefit from) Income Taxes | The components of the provision for (benefit from) income taxes for the years ended December 31, 2014, 2013 and 2012 are as follows: | ||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | |||||||||||
Current: | |||||||||||||
Federal | $ | — | $ | 68,431 | $ | (30,467 | ) | ||||||
State and local | 233,940 | 57,476 | 2,461 | ||||||||||
233,940 | 125,907 | (28,006 | ) | ||||||||||
Deferred: | |||||||||||||
Federal | (1,718,351 | ) | 1,078,543 | 1,006,568 | |||||||||
State and local | (243,312 | ) | 291,646 | 267,835 | |||||||||
(1,961,663 | ) | 1,370,189 | 1,274,403 | ||||||||||
$ | (1,727,723 | ) | $ | 1,496,096 | $ | 1,246,397 | |||||||
Reconciliation of Statutory Federal Income Tax Provision (Benefit) | A reconciliation of the statutory federal income tax provision (benefit) to the Company’s provision for (benefit from) income tax is as follows: | ||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Statutory federal income tax benefit | $ | (838,519 | ) | $ | (1,012,349 | ) | $ | (1,415,538 | ) | ||||
Effect of non-taxable REIT (income) loss | (898,576 | ) | 2,159,323 | 2,391,639 | |||||||||
State income tax provision | 9,372 | 349,122 | 270,296 | ||||||||||
$ | (1,727,723 | ) | $ | 1,496,096 | $ | 1,246,397 | |||||||
Loss_per_Share_and_per_Unit_Ta
Loss per Share and per Unit (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Computation of Basic and Diluted Loss Per Share | The computation of basic and diluted loss per share is presented below. | ||||||||||||
Year ended | Year ended | Year ended | |||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | |||||||||||
Numerator | |||||||||||||
Net loss attributable to the Company for basic and diluted computation | $ | (584,671 | ) | $ | (3,483,969 | ) | $ | (4,167,877 | ) | ||||
Denominator | |||||||||||||
Weighted average number of common shares outstanding | 10,377,125 | 10,156,955 | 9,995,638 | ||||||||||
Basic and diluted net loss per share | $ | (0.06 | ) | $ | (0.34 | ) | $ | (0.42 | ) | ||||
Computation of Basic and Diluted Loss Per Unit | The computation of basic and diluted loss per unit is presented below. | ||||||||||||
Year ended | Year ended | Year ended | |||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | |||||||||||
Numerator | |||||||||||||
Net loss | $ | (738,509 | ) | $ | (4,473,592 | ) | $ | (5,409,745 | ) | ||||
Denominator | |||||||||||||
Weighted average number of units outstanding | 13,107,413 | 13,042,020 | 12,973,953 | ||||||||||
Basic and diluted net loss per unit | $ | (0.06 | ) | $ | (0.34 | ) | $ | (0.42 | ) | ||||
Quarterly_Operating_Results_Un1
Quarterly Operating Results (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Operating Results | |||||||||||||||||
Quarters Ended 2014 | |||||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||||
Total revenue | $ | 25,010,389 | $ | 36,339,701 | $ | 31,764,453 | $ | 29,825,377 | |||||||||
Total operating expenses | 22,249,394 | 29,120,620 | 28,622,841 | 30,441,730 | |||||||||||||
Net operating income (loss) | 2,760,995 | 7,219,081 | 3,141,612 | (616,353 | ) | ||||||||||||
Net income (loss) attributable to the Company | 783,002 | 2,166,689 | (214,902 | ) | (3,319,460 | ) | |||||||||||
Earnings (loss) per share – basic and diluted | 0.08 | 0.21 | (0.02 | ) | (0.32 | ) | |||||||||||
Quarters Ended 2013 | |||||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||||
(Restated) | |||||||||||||||||
Total revenue | $ | 20,189,812 | $ | 25,250,643 | $ | 21,458,637 | $ | 22,475,435 | |||||||||
Total operating expenses | 18,306,556 | 20,285,017 | 19,123,547 | 21,251,928 | |||||||||||||
Net operating income (loss) | 1,883,256 | 4,965,626 | 2,335,090 | 1,223,507 | |||||||||||||
Net income (loss) attributable to the Company | (2,594,916 | ) | 1,310,592 | (1,649,722 | ) | (549,923 | ) | ||||||||||
Earnings (loss) per share – basic | (0.26 | ) | 0.13 | (0.16 | ) | (0.05 | ) | ||||||||||
Earnings (loss) per share – diluted | (0.26 | ) | 0.12 | (0.16 | ) | (0.05 | ) |
Organization_and_Description_o1
Organization and Description of Business - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||||||||||||||||||||
Dec. 27, 2013 | Dec. 23, 2013 | Oct. 23, 2013 | Sep. 30, 2013 | Aug. 01, 2013 | Apr. 01, 2013 | Mar. 26, 2013 | Aug. 01, 2012 | Jun. 18, 2012 | Jun. 15, 2012 | 1-May-12 | Dec. 21, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 24, 2014 | Mar. 27, 2014 | Nov. 21, 2014 | Dec. 19, 2014 | Mar. 05, 2012 | Mar. 31, 2014 | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 22, 2012 | Jul. 10, 2012 | Mar. 22, 2013 | Mar. 26, 2014 | Nov. 13, 2013 | Apr. 18, 2011 | |
Hotel | ParkingSpaces | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
Extended maturity date of mortgage loan | 31-May-13 | ||||||||||||||||||||||||||||
Amount of prepayment | $1,500,000 | ||||||||||||||||||||||||||||
Amount of undrawn term loan commitments | 7,000,000 | ||||||||||||||||||||||||||||
Preference stock, shares agreed for redemption | 2,460 | 1,902 | 11,514 | 11,514 | |||||||||||||||||||||||||
Preference share, aggregate redemption price | 10,700,000 | 2,700,000 | 2,100,000 | 12,300,000 | 12,300,000 | ||||||||||||||||||||||||
Extension in loan agreement | 17 months | ||||||||||||||||||||||||||||
Prepayment fee | 700,000 | 200,000 | 200,000 | 800,000 | |||||||||||||||||||||||||
Number of issuable warrant shares redeemed | 1,000,000 | 900,000 | |||||||||||||||||||||||||||
Percentage ownership by the Operating Partnership in the acquisition | 100.00% | ||||||||||||||||||||||||||||
Number of units | 32,929 | ||||||||||||||||||||||||||||
Number of remaining issuable warrant shares redeemed | 1,000,000 | ||||||||||||||||||||||||||||
Aggregate purchase price for remaining portion | 4,000,000 | ||||||||||||||||||||||||||||
Number of issuable warrant unit redeemed | 1,000,000 | 10,000 | 6,000 | 6,000 | |||||||||||||||||||||||||
Non recourse mortgage | 57,000,000 | ||||||||||||||||||||||||||||
Amount of distribution proceeds to pay existing loans | 3,500,000 | ||||||||||||||||||||||||||||
Agreement taken to secured loan | 10,000,000 | 19,000,000 | |||||||||||||||||||||||||||
Duration of franchise agreement | 10 years | ||||||||||||||||||||||||||||
Agreement date | 2014-11 | ||||||||||||||||||||||||||||
Proceeds of unsecured notes | 25,300,000 | 27,600,000 | |||||||||||||||||||||||||||
Repayment of Bridge Loan | 25,537,290 | ||||||||||||||||||||||||||||
Essex Warrant [Member] | |||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||
Number of issuable warrant shares redeemed | 900,000 | ||||||||||||||||||||||||||||
Aggregate cash redemption price | 3,200,000 | ||||||||||||||||||||||||||||
Warrant redeemed to purchase common stock | 1,900,000 | ||||||||||||||||||||||||||||
Essex Illiquid, LLC and Richmond Hill Capital Partners, LP [Member] | |||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||
Warrant redeemed to purchase common stock | 1,900,000 | ||||||||||||||||||||||||||||
Sotherly Hotels LP [Member] | |||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||
Preference share, aggregate redemption price | 10,700,000 | ||||||||||||||||||||||||||||
Prepayment fee | 700,000 | ||||||||||||||||||||||||||||
Operating Partnership aggregate amount of unsecured senior notes | 27,600,000 | ||||||||||||||||||||||||||||
Warrant redeemed to purchase common stock | 1,900,000 | ||||||||||||||||||||||||||||
Proceeds of unsecured notes | 25,300,000 | 27,600,000 | |||||||||||||||||||||||||||
Repayment of Bridge Loan | 25,537,290 | ||||||||||||||||||||||||||||
Sotherly Hotels LP [Member] | Essex Warrant [Member] | |||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||
Preference stock, shares agreed for redemption | 1,000,000 | 900,000 | |||||||||||||||||||||||||||
Preference share, aggregate redemption price | 4,000,000 | 3,200,000 | |||||||||||||||||||||||||||
Aggregate purchase price for remaining portion | 4,000,000 | ||||||||||||||||||||||||||||
Crowne Plaza Hampton Marina [Member] | |||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||
Extended maturity date of mortgage loan | 30-Jun-15 | ||||||||||||||||||||||||||||
Extended maturity date of mortgage loan | 30-Jun-14 | ||||||||||||||||||||||||||||
Interest on loan | 5.00% | ||||||||||||||||||||||||||||
Operating Partnership [Member] | |||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||
Percentage owned by the Company of the Operating Partnership | 80.60% | ||||||||||||||||||||||||||||
Warrant redeemed to purchase common stock | 1,900,000 | ||||||||||||||||||||||||||||
Crowne Plaza Hollywood Beach Resort [Member] | |||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||
Percentage of noncontrolling interest holding in Crowne Plaza Hollywood Beach Resort | 25.00% | ||||||||||||||||||||||||||||
Bridge Loan [Member] | |||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||
Debt instrument maturity date | 26-Mar-15 | ||||||||||||||||||||||||||||
Interest on loan | 10.00% | ||||||||||||||||||||||||||||
Repayment of Bridge Loan | 19,000,000 | ||||||||||||||||||||||||||||
Georgian Terrace [Member] | |||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||
Acquired property value | 61,106,085 | 61,100,000 | |||||||||||||||||||||||||||
Rooms in hotel | 326 | ||||||||||||||||||||||||||||
Parking space | 698 | ||||||||||||||||||||||||||||
Development parcel | 0.6 | ||||||||||||||||||||||||||||
Crowne Plaza Houston [Member] | |||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||
Acquired property value | 30,879,595 | 30,900,000 | |||||||||||||||||||||||||||
Senior Unsecured Notes [Member] | Sotherly Hotels LP [Member] | |||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||
Debt instrument maturity date | 30-Sep-18 | ||||||||||||||||||||||||||||
Interest rate on amount borrowed | 8.00% | ||||||||||||||||||||||||||||
7.0% Senior Unsecured Notes [Member] | |||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||
Amount of mortgage loan | 25,300,000 | 25,300,000 | |||||||||||||||||||||||||||
Debt instrument maturity date | 15-Nov-19 | ||||||||||||||||||||||||||||
Interest rate on amount borrowed | 7.00% | 7.00% | |||||||||||||||||||||||||||
Proceeds of unsecured notes | 25,300,000 | ||||||||||||||||||||||||||||
Crowne Plaza Jacksonville Riverfront [Member] | |||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||
Additional proceeds on mortgage loan | 3,000,000 | ||||||||||||||||||||||||||||
Mortgage Loans [Member] | Crowne Plaza Hampton Marina [Member] | |||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||
Additional interest rate | 5.00% | ||||||||||||||||||||||||||||
Debt instrument maturity date | 30-Jun-16 | ||||||||||||||||||||||||||||
Series A Cumulative Redeemable Preferred Stock [Member] | |||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||
Preference stock, shares agreed for redemption | 11,514 | ||||||||||||||||||||||||||||
Preference share, aggregate redemption price | 12,300,000 | ||||||||||||||||||||||||||||
TD Bank [Member] | |||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||
Amount of mortgage loan | 30,000,000 | ||||||||||||||||||||||||||||
Additional interest rate | 3.00% | ||||||||||||||||||||||||||||
Amortization schedule for level payments of principal and interest on a monthly basis | 25 years | ||||||||||||||||||||||||||||
Debt instrument maturity date | 30-Aug-14 | ||||||||||||||||||||||||||||
Extended maturity date of mortgage loan | 1-Mar-17 | ||||||||||||||||||||||||||||
TD Bank [Member] | Double Tree By Hilton Philadelphia Airport [Member] | |||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||
Amount of mortgage loan | 30,000,000 | ||||||||||||||||||||||||||||
Additional interest rate | 3.00% | ||||||||||||||||||||||||||||
Debt instrument maturity date | 1-Apr-19 | ||||||||||||||||||||||||||||
Interest floor rate | 3.50% | ||||||||||||||||||||||||||||
Amortization schedule | 25 years | ||||||||||||||||||||||||||||
Additional mortgage loan | 5,600,000 | ||||||||||||||||||||||||||||
Bridge Financing [Member] | |||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||
Debt instrument borrowing capacity | 10,000,000 | ||||||||||||||||||||||||||||
Amount of prepayment | 1,500,000 | ||||||||||||||||||||||||||||
Amount of undrawn term loan commitments | 7,000,000 | ||||||||||||||||||||||||||||
Reserved to repay principal amounts outstanding on the Crowne Plaza Jacksonville Riverfront hotel property | 2,000,000 | ||||||||||||||||||||||||||||
C1 Bank [Member] | |||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||
Amount of mortgage loan | 14,000,000 | ||||||||||||||||||||||||||||
Amortization schedule for level payments of principal and interest on a monthly basis | 25 years | ||||||||||||||||||||||||||||
Debt instrument maturity date | 18-Jun-17 | ||||||||||||||||||||||||||||
Interest rate on amount borrowed | 5.60% | ||||||||||||||||||||||||||||
Proceeds of the mortgage used to redeem Preferred Stock | 11,514 | ||||||||||||||||||||||||||||
Towne Bank [Member] | |||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||
Additional interest rate | 4.55% | 4.55% | |||||||||||||||||||||||||||
Extended maturity date of mortgage loan | 30-Jun-13 | ||||||||||||||||||||||||||||
Interest rate on amount borrowed | 5.00% | ||||||||||||||||||||||||||||
Principal payment on extended maturity agreement - monthly | 83,000 | 16,000 | 16,000 | ||||||||||||||||||||||||||
Repayment dates 1 | 1-Jul-12 | ||||||||||||||||||||||||||||
Repayment dates 2 | 1-Oct-12 | ||||||||||||||||||||||||||||
Repayment dates 3 | 1-Jan-13 | ||||||||||||||||||||||||||||
Repayment dates 4 | 1-Apr-13 | ||||||||||||||||||||||||||||
Minimum rate of interest | 5.00% | 5.00% | |||||||||||||||||||||||||||
Principal payment on extended maturity agreement - quarterly | 200,000 | ||||||||||||||||||||||||||||
Principal payment of loan under extension agreement | 800,000 | 1,100,000 | |||||||||||||||||||||||||||
Reduced principal balance of loan under extension agreement | 6,000,000 | ||||||||||||||||||||||||||||
Extended maturity date of mortgage loan | 30-Jun-16 | ||||||||||||||||||||||||||||
Fifth Third Bank [Member] | |||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||
Amount of mortgage loan | 14,300,000 | ||||||||||||||||||||||||||||
Additional interest rate | 3.00% | ||||||||||||||||||||||||||||
Debt instrument maturity date | 10-Jul-15 | ||||||||||||||||||||||||||||
Amortization schedule for level payments of principal and interest on a monthly basis | 25 years | ||||||||||||||||||||||||||||
Additional draw up of mortgaged | 3,000,000 | ||||||||||||||||||||||||||||
Hilton Brownstone-University Hotel [Member] | |||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||
Amount of mortgage loan | 10,000,000 | ||||||||||||||||||||||||||||
Preference stock, shares agreed for redemption | 1,902 | ||||||||||||||||||||||||||||
Preference share, aggregate redemption price | 2,100,000 | ||||||||||||||||||||||||||||
Interest rate if mortgage loan is extended | 5.25% | ||||||||||||||||||||||||||||
Interest floor rate | 5.25% | ||||||||||||||||||||||||||||
Mortgage bears interest rate after 5 years | 3.00% | ||||||||||||||||||||||||||||
Extension in loan agreement | 5 years | ||||||||||||||||||||||||||||
Hilton Brownstone-University Hotel [Member] | Mortgage Loans [Member] | |||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||
Amount of mortgage loan | 8,000,000 | ||||||||||||||||||||||||||||
Hilton Brownstone-University Hotel [Member] | Mortgage Loans [Member] | Extensions [Member] | |||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||
Interest rate terms for Mortgage Loan extension. | 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% | ||||||||||||||||||||||||||||
CIBC [Member] | |||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||
Amount of mortgage loan | 15,600,000 | ||||||||||||||||||||||||||||
Amortization schedule for level payments of principal and interest on a monthly basis | 30 years | ||||||||||||||||||||||||||||
Debt instrument maturity date | 1-Aug-18 | ||||||||||||||||||||||||||||
Interest rate on amount borrowed | 4.78% | ||||||||||||||||||||||||||||
Loan proceeds were placed into a restricted reserve | 700,000 | ||||||||||||||||||||||||||||
Prepayment fee | 200,000 | ||||||||||||||||||||||||||||
CIBC [Member] | Series A Cumulative Redeemable Preferred Stock [Member] | |||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||
Preference share, aggregate redemption price | 2,700,000 | ||||||||||||||||||||||||||||
Proceeds of the mortgage used to redeem Preferred Stock | 2,460 | ||||||||||||||||||||||||||||
Richmond Hill Capital Partners Lp [Member] | |||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||
Agreement taken to secured loan | 19,000,000 | ||||||||||||||||||||||||||||
Richmond Hill Capital Partners Lp [Member] | Bridge Loan [Member] | |||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||
Debt instrument maturity date | 26-Mar-15 | ||||||||||||||||||||||||||||
Interest on loan | 10.00% | ||||||||||||||||||||||||||||
Bank Of Ozarks [Member] | First Mortgage Loans [Member] | |||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||
Additional interest rate | 3.75% | ||||||||||||||||||||||||||||
Debt instrument maturity date | 27-Mar-17 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
Period subject to certain terms and conditions | 1 year |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2015 | Apr. 27, 2015 | |
Segment | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Federal Deposit Insurance Corporation protection limits | $250,000 | ||||
Un-amortized franchise fees | 394,139 | 196,989 | |||
Amortization expense | 50,908 | 49,658 | 43,500 | ||
Lease revenue | 1,700,000 | 1,700,000 | 1,600,000 | ||
Shares issued under plan | 72,850 | ||||
Compensation cost recognized | 245,565 | 323,800 | 110,400 | ||
Advertising cost | 198,991 | 181,886 | 186,963 | ||
Number of reportable segment | 1 | ||||
Director [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Shares issued under plan | 22,500 | ||||
Executives and Employees [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Shares issued under plan | 50,350 | ||||
Chief Financial Officer [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Shares issued to the Vice President and General Counsel | 9,750 | ||||
Crowne Plaza Hollywood Beach Resort [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% | ||||
2013 Plan [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Performance-based stock awards granted | 0 | ||||
Compensation cost recognized | 292,405 | 323,800 | 110,400 | ||
2004 Plan [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Shares issued under plan | 337,438 | ||||
Termination year of stock based compensation plan | 2013 | ||||
Performance-based stock awards granted | 0 | ||||
Compensation cost recognized | $292,405 | $323,800 | $110,400 | ||
Stock based compensation plan termination date | 30-Apr-13 | ||||
2004 Plan [Member] | Director [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Shares issued under plan | 81,500 | ||||
2004 Plan [Member] | Executives and Employees [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Shares issued under plan | 255,938 | ||||
Vesting period of employment contract | 3 years | ||||
2004 Plan [Member] | Chief Financial Officer [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Shares issued to the Vice President and General Counsel | 18,000 | ||||
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] | 2013 Plan [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Restricted and performance stock awards permitted to grant to employees | 750,000 | ||||
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] | 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 | ||||
Scenario, Forecast [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Stock based compensation, number of shares expected to vest | 9,000 | 750 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Derivative Instruments and Mortgage Debt Measured at Fair Value (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Level 1 [Member] | Unsecured Notes [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Debt instruments measured at fair value | ($53,816,320) | ($28,770,240) |
Level 2 [Member] | Mortgage Loans [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Debt instruments measured at fair value | -209,994,659 | -162,841,165 |
Level 3 [Member] | Investment In Hotel Property, Net [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Investment in Hotel Property, net | $6,396,787 | $10,011,647 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Schedule of Minimum Future Lease Payments Receivable (Detail) (USD $) | Dec. 31, 2014 |
Leases [Abstract] | |
31-Dec-15 | $1,206,269 |
31-Dec-16 | 1,034,209 |
31-Dec-17 | 643,123 |
31-Dec-18 | 202,615 |
31-Dec-19 | 159,520 |
December 31, 2020 and thereafter | 619,780 |
Total | $3,865,516 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Schedule of Reclassifications and Immaterial Restatements (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Accounts affected by the immaterial restatement and reclassifications on consolidated balance sheets: | ||||||||||||
Investment in joint venture | $1,982,107 | $2,424,737 | $1,982,107 | $2,424,737 | ||||||||
Accounts receivable, net | 1,908,762 | 1,812,026 | 1,908,762 | 1,812,026 | ||||||||
Accounts receivable - affiliate and joint venture | 197,674 | 209,947 | 197,674 | 209,947 | ||||||||
Prepaid expenses, inventory and other assets | 3,334,401 | 2,261,303 | 3,334,401 | 2,261,303 | ||||||||
Deferred income taxes | 3,543,295 | 1,581,632 | 3,543,295 | 1,581,632 | ||||||||
Total assets | 299,820,043 | 228,169,081 | 299,820,043 | 228,169,081 | ||||||||
Account payable and accrued liabilities | 12,044,886 | 8,095,782 | 12,044,886 | 8,095,782 | ||||||||
Total liabilities | 272,310,186 | 197,314,286 | 272,310,186 | 197,314,286 | ||||||||
Distributions in excess of retained earnings | -35,388,313 | -32,450,773 | -35,388,313 | -32,450,773 | ||||||||
Noncontrolling interest | 4,132,662 | 5,669,386 | 4,132,662 | 5,669,386 | ||||||||
Total equity | 27,509,857 | 30,854,795 | 27,509,857 | 30,854,795 | 37,053,953 | 43,687,100 | ||||||
Total liabilities and equity | 299,820,043 | 228,169,081 | 299,820,043 | 228,169,081 | ||||||||
Accounts affected by the immaterial restatement on consolidated statements of operations: | ||||||||||||
Total hotel operating expenses | 90,204,355 | 65,528,237 | 64,440,575 | |||||||||
Equity income of joint venture | 307,370 | 449,500 | 178,138 | |||||||||
Income tax provision | -1,727,723 | 1,496,096 | 1,246,397 | |||||||||
Net loss | -738,509 | -4,473,592 | -5,409,745 | |||||||||
Net loss attributable to the noncontrolling interest | -153,838 | -989,623 | -1,241,868 | |||||||||
Net loss attributable to the Company | -3,319,460 | -214,902 | 2,166,689 | 783,002 | -549,923 | -1,649,722 | 1,310,592 | -2,594,916 | -584,671 | -3,483,969 | -4,167,877 | |
Scenario, Previously Reported [Member] | ||||||||||||
Accounts affected by the immaterial restatement and reclassifications on consolidated balance sheets: | ||||||||||||
Investment in joint venture | 2,446,039 | 2,446,039 | ||||||||||
Accounts receivable, net | 1,982,091 | 1,982,091 | ||||||||||
Accounts receivable - affiliate and joint venture | 101,439 | 101,439 | ||||||||||
Prepaid expenses, inventory and other assets | 2,444,975 | 2,444,975 | ||||||||||
Deferred income taxes | 1,186,122 | 1,186,122 | ||||||||||
Total assets | 228,040,102 | 228,040,102 | ||||||||||
Account payable and accrued liabilities | 7,650,219 | 7,650,219 | ||||||||||
Total liabilities | 196,868,723 | 196,868,723 | ||||||||||
Distributions in excess of retained earnings | -32,210,917 | -32,210,917 | ||||||||||
Noncontrolling interest | 5,746,114 | 5,746,114 | ||||||||||
Total equity | 31,171,379 | 31,171,379 | ||||||||||
Total liabilities and equity | 228,040,102 | 228,040,102 | ||||||||||
Accounts affected by the immaterial restatement on consolidated statements of operations: | ||||||||||||
Total hotel operating expenses | 65,468,944 | 64,297,743 | ||||||||||
Equity income of joint venture | 453,700 | 172,172 | ||||||||||
Income tax provision | -1,521,182 | -1,301,229 | ||||||||||
Net loss | -4,435,185 | -5,327,711 | ||||||||||
Net loss attributable to the noncontrolling interest | 981,126 | 1,223,036 | ||||||||||
Net loss attributable to the Company | -3,454,059 | -4,104,675 | ||||||||||
Immaterial Restatement Inc/(Dec) [Member] | ||||||||||||
Accounts affected by the immaterial restatement and reclassifications on consolidated balance sheets: | ||||||||||||
Investment in joint venture | -21,302 | -21,302 | ||||||||||
Accounts receivable, net | -170,065 | -170,065 | ||||||||||
Accounts receivable - affiliate and joint venture | 108,508 | 108,508 | ||||||||||
Prepaid expenses, inventory and other assets | -183,672 | -183,672 | ||||||||||
Deferred income taxes | 395,510 | 395,510 | ||||||||||
Total assets | 128,979 | 128,979 | ||||||||||
Account payable and accrued liabilities | 445,563 | 445,563 | ||||||||||
Total liabilities | 445,563 | 445,563 | ||||||||||
Distributions in excess of retained earnings | 239,856 | 239,856 | ||||||||||
Noncontrolling interest | -76,728 | -76,728 | ||||||||||
Total equity | -316,854 | -316,854 | ||||||||||
Total liabilities and equity | 128,979 | 128,979 | ||||||||||
Accounts affected by the immaterial restatement on consolidated statements of operations: | ||||||||||||
Total hotel operating expenses | 59,293 | 142,832 | ||||||||||
Equity income of joint venture | -4,200 | 5,966 | ||||||||||
Income tax provision | 25,086 | 54,832 | ||||||||||
Net loss | -38,407 | -82,034 | ||||||||||
Net loss attributable to the noncontrolling interest | 8,497 | 18,832 | ||||||||||
Net loss attributable to the Company | -29,910 | 63,202 | ||||||||||
Restatement Adjustment [Member] | ||||||||||||
Accounts affected by the immaterial restatement and reclassifications on consolidated balance sheets: | ||||||||||||
Investment in joint venture | 2,424,737 | 2,424,737 | ||||||||||
Accounts receivable, net | 1,812,026 | 1,812,026 | ||||||||||
Accounts receivable - affiliate and joint venture | 209,947 | 209,947 | ||||||||||
Prepaid expenses, inventory and other assets | 2,261,303 | 2,261,303 | ||||||||||
Deferred income taxes | 1,581,632 | 1,581,632 | ||||||||||
Total assets | 228,169,081 | 228,169,081 | ||||||||||
Account payable and accrued liabilities | 8,095,782 | 8,095,782 | ||||||||||
Total liabilities | 197,314,286 | 197,314,286 | ||||||||||
Distributions in excess of retained earnings | -32,450,773 | -32,450,773 | ||||||||||
Noncontrolling interest | 5,669,386 | 5,669,386 | ||||||||||
Total equity | 30,854,795 | 30,854,795 | ||||||||||
Total liabilities and equity | 228,169,081 | 228,169,081 | ||||||||||
Accounts affected by the immaterial restatement on consolidated statements of operations: | ||||||||||||
Total hotel operating expenses | 65,528,237 | 64,440,575 | ||||||||||
Equity income of joint venture | 449,500 | 178,138 | ||||||||||
Income tax provision | -1,496,096 | -1,246,397 | ||||||||||
Net loss | -4,473,592 | -5,409,745 | ||||||||||
Net loss attributable to the noncontrolling interest | 989,623 | 1,241,868 | ||||||||||
Net loss attributable to the Company | ($3,483,969) | ($4,167,877) |
Acquisition_of_Hotel_Propertie2
Acquisition of Hotel Properties - Additional Information (Detail) (USD $) | 2 Months Ended | 9 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2014 | Nov. 13, 2013 | Mar. 27, 2014 | |
Crowne Plaza Houston [Member] | ||||
Schedule Of Summary Of Acquisitions Of Properties [Line Items] | ||||
Acquired property value | $30,879,595 | $30,900,000 | ||
Total revenue from acquisitions | 1,400,000 | |||
Net income from acquisitions | 200,000 | |||
Georgian Terrace [Member] | ||||
Schedule Of Summary Of Acquisitions Of Properties [Line Items] | ||||
Acquired property value | 61,106,085 | 61,100,000 | ||
Total revenue from acquisitions | 16,400,000 | |||
Net income from acquisitions | $2,200,000 |
Acquisition_of_Hotel_Propertie3
Acquisition of Hotel Properties - Allocation of Purchase Price Based on Fair Values (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Nov. 13, 2013 | Mar. 27, 2014 | |
Schedule Of Summary Of Acquisitions Of Properties [Line Items] | ||||
Net cash | $61,106,085 | $30,725,959 | ||
Crowne Plaza Houston [Member] | ||||
Schedule Of Summary Of Acquisitions Of Properties [Line Items] | ||||
Land and land improvements | 7,373,937 | |||
Buildings and improvements | 22,184,692 | |||
Furniture, fixtures and equipment | 718,828 | |||
Investment in hotel properties | 30,277,457 | |||
Accounts receivable | 391,470 | |||
Accounts receivable-affiliate | 72,094 | |||
Prepaid expenses, inventory and other assets | 83,378 | |||
Intangible assets | 761,212 | |||
Accounts payable and accrued liabilities | -631,847 | |||
Advance deposits | -74,169 | |||
Acquired property value | 30,879,595 | 30,900,000 | ||
Issuance of units | -153,636 | |||
Net cash | 30,725,959 | |||
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 | 232,415 | |||
Intangible assets | 198,583 | |||
Accounts payable and accrued liabilities | -126,747 | |||
Advance deposits | -464,872 | |||
Acquired property value | 61,106,085 | 61,100,000 | ||
Net cash | $61,106,085 |
Acquisition_of_Hotel_Propertie4
Acquisition of Hotel Properties - Pro Forma Results Prepared for Comparative Purposes (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Business Combinations [Abstract] | ||
Pro forma revenues | $127,710,583 | $121,678,207 |
Pro forma operating expenses | 117,286,682 | 106,883,934 |
Pro forma operating income | 10,423,901 | 14,794,273 |
Pro forma net loss | ($2,959,101) | ($4,089,813) |
Pro forma loss per basic and diluted share and unit | ($0.29) | ($0.40) |
Pro forma basic and diluted common shares | 10,377,125 | 10,156,955 |
Investment_in_Hotel_Properties2
Investment in Hotel Properties - Schedule of Hotel Properties (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Total Gross | $333,589,913 | $262,887,882 |
Less: accumulated depreciation and impairment | -73,397,760 | -60,242,249 |
Total Net | 260,192,153 | 202,645,633 |
Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total Gross | 37,483,400 | 26,956,311 |
Buildings and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total Gross | 257,343,516 | 206,101,663 |
Furniture, Fixtures and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total Gross | $38,762,997 | $29,829,908 |
Investment_in_Hotel_Properties3
Investment in Hotel Properties - Additional Information (Detail) (USD $) | 12 Months Ended | 144 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | |
Property Plant And Equipment Capitalized Interest Costs [Abstract] | |||
Impairment of hotel properties | $3,175,000 | $611,000 | $3,175,000 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | |||||||
Dec. 27, 2013 | Nov. 21, 2014 | Dec. 31, 2014 | Sep. 30, 2013 | Mar. 26, 2014 | Dec. 31, 2013 | Dec. 21, 2011 | Nov. 24, 2014 | Feb. 09, 2009 | Dec. 31, 2011 | |
Debt Instrument [Line Items] | ||||||||||
Mortgage loan outstanding balance | 205,300,000 | $160,400,000 | ||||||||
Non-recourse mortgage loan | 57,000,000 | |||||||||
Company's portion of distribution used to pay down debt | 3,500,000 | |||||||||
Secured Bridge Loan | 19,000,000 | 10,000,000 | ||||||||
7.0% Senior Unsecured Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Company issued senior unsecured notes | 7.00% | 7.00% | ||||||||
Borrowed amount | 25,300,000 | 25,300,000 | ||||||||
Debt instrument maturity date | 15-Nov-19 | |||||||||
Notes face value | 101.00% | |||||||||
8.0% Senior Unsecured Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Company issued senior unsecured notes | 8.00% | |||||||||
Borrowed amount | 27,600,000 | |||||||||
Debt instrument maturity date | 30-Sep-18 | |||||||||
Notes face value | 101.00% | |||||||||
Other Loans [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate on loan | LIBOR plus additional interest of 3.00% | |||||||||
Repayments of interest and principal | 50.0% of any distributions | |||||||||
Outstanding balance on the loan | 0 | 0 | ||||||||
Other Loans [Member] | Carlyle [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Borrowed amount | 4,750,000 | |||||||||
Bridge Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument maturity date | 26-Mar-15 | |||||||||
Interest rate on loan | 10.00% | |||||||||
Limited partnership interests in the subsidiary | 100.00% | |||||||||
Outstanding balance on the Bridge Financing | 0 | 0 | ||||||||
Bridge Financing [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument borrowing capacity | 10,000,000 | |||||||||
Interest rate on loan | 9.25% | |||||||||
Borrowings | 0 | $0 |
Debt_Schedule_of_Mortgage_Debt
Debt - Schedule of Mortgage Debt Obligations on Hotels (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | ||
Mortgage loans | $205,291,657 | $160,363,549 |
Mortgage Loans [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage loans | 205,291,657 | 160,363,549 |
Crowne Plaza Hampton Marina [Member] | ||
Debt Instrument [Line Items] | ||
Amortization Provisions | 83,000 | |
Crowne Plaza Hampton Marina [Member] | Mortgage Loans [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage loans | 4,509,500 | 5,903,500 |
Prepayment Penalties | None | |
Maturity Date | 30-Jun-16 | |
Amortization Provisions | 83,000 | |
Excess Interest rate over LIBOR on mortgage debt | 5.00% | |
Crowne Plaza Houston Downtown [Member] | Mortgage Loans [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage loans | 20,954,867 | 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 Loans [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage loans | 16,358,706 | 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% | |
Crowne Plaza Tampa Westshore [Member] | Mortgage Loans [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage loans | 13,317,684 | 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% | |
Double Tree By Hilton Philadelphia Airport [Member] | Mortgage Loans [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage loans | 33,378,102 | 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% | |
Doubletree By Hilton Raleigh Brownstone - University [Member] | Mortgage Loans [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage loans | 15,274,284 | 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% | |
Georgian Terrace [Member] | Mortgage Loans [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage loans | 41,500,000 | |
Prepayment Penalties | None | |
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% | |
Hilton Savannah DeSoto [Member] | Mortgage Loans [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage loans | 21,050,093 | 21,546,423 |
Prepayment Penalties | Yes | |
Maturity Date | 1-Sep-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 Loans [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage loans | 20,389,325 | 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 Loans [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage loans | 6,974,458 | 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% | |
Sheraton Louisville Riverside [Member] | Mortgage Loans [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage loans | $11,584,638 | $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% |
Debt_Schedule_of_Mortgage_Debt1
Debt - Schedule of Mortgage Debt Obligations on Hotels (Parenthetical) (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Jun. 27, 2014 | |
Crowne Plaza Hampton Marina [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument periodic payment | $83,000 | |
Interest rate | 5.00% | |
Extended maturity date | 30-Jun-14 | |
Crowne Plaza Houston Downtown [Member] | ||
Debt Instrument [Line Items] | ||
Duration of loan prepaid | 13-Nov-15 | |
Extended maturity date | 30-Nov-18 | |
Crowne Plaza Jacksonville Riverfront [Member] | ||
Debt Instrument [Line Items] | ||
Extended maturity date | 31-Jul-16 | |
Double Tree By Hilton Philadelphia Airport [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.50% | |
Doubletree By Hilton Raleigh Brownstone - University [Member] | ||
Debt Instrument [Line Items] | ||
Number of months for prepayment before maturity | 2 months | |
Georgian Terrace [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.00% | |
Hilton Savannah DeSoto [Member] | ||
Debt Instrument [Line Items] | ||
Period in which prepayment not allowed | 6 years | |
Period before maturity in which prepayment is allowed with penalty | 90 days | |
Hilton Wilmington Riverside [Member] | ||
Debt Instrument [Line Items] | ||
Period in which prepayment not allowed | 6 years | |
Period before maturity in which prepayment is allowed with penalty | 90 days | |
Holiday Inn Laurel West [Member] | ||
Debt Instrument [Line Items] | ||
Period before maturity in which prepayment is allowed 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% | |
Sheraton Louisville Riverside [Member] | ||
Debt Instrument [Line Items] | ||
Number of months for prepayment before maturity | 2 months |
Debt_Schedule_of_Future_Mortga
Debt - Schedule of Future Mortgage Debt Maturities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Disclosure [Abstract] | ||
31-Dec-15 | $21,477,897 | |
31-Dec-16 | 27,874,371 | |
31-Dec-17 | 104,751,035 | |
31-Dec-18 | 15,824,365 | |
31-Dec-19 | 29,372,341 | |
December 31, 2020 and thereafter | 5,991,648 | |
Total future maturities | $205,291,657 | $160,363,549 |
Preferred_Stock_Preferred_Inte1
Preferred Stock, Preferred Interest and Warrants - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | ||||||||||||
Dec. 23, 2013 | Oct. 23, 2013 | Sep. 30, 2013 | Aug. 01, 2013 | Apr. 01, 2013 | Mar. 26, 2013 | Aug. 01, 2012 | Jun. 18, 2012 | 1-May-12 | Apr. 18, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 15, 2012 | Dec. 31, 2011 | |
Preferred Units [Line Items] | ||||||||||||||
Gross proceeds from securities purchase agreement | $25,000,000 | |||||||||||||
Preferred stock, shares issued | 25,000 | 0 | 0 | |||||||||||
Preferred stock, par value | $0.01 | $0.01 | $0.01 | |||||||||||
Preferred stock, shares outstanding | 0 | 0 | ||||||||||||
Preference share, aggregate redemption price | 10,700,000 | 2,700,000 | 2,100,000 | 12,300,000 | 12,300,000 | |||||||||
Preference stock, shares agreed for redemption | 2,460 | 1,902 | 11,514 | 11,514 | ||||||||||
Prepayment fee | 700,000 | 200,000 | 200,000 | 800,000 | ||||||||||
Amortization of issuance costs | 400,000 | 100,000 | 700,000 | |||||||||||
Unamortized issuance costs | 100,000 | |||||||||||||
Number of issuable warrant shares redeemed | 1,000,000 | 900,000 | ||||||||||||
Aggregate cash redemption price | 4,000,000 | |||||||||||||
Number of issuable warrant unit redeemed | 1,000,000 | 10,000 | 6,000 | 6,000 | ||||||||||
8.0% Senior Unsecured Notes [Member] | ||||||||||||||
Preferred Units [Line Items] | ||||||||||||||
Notes offering | 8.00% | |||||||||||||
Crowne Plaza Tampa Westshore [Member] | ||||||||||||||
Preferred Units [Line Items] | ||||||||||||||
Preference stock, shares agreed for redemption | 11,514 | |||||||||||||
Sotherly Hotels LP [Member] | ||||||||||||||
Preferred Units [Line Items] | ||||||||||||||
Warrant purchase common stock | 1,900,000 | |||||||||||||
Preference share, aggregate redemption price | 10,700,000 | |||||||||||||
Prepayment fee | 700,000 | |||||||||||||
Amortization of issuance costs | 400,000 | |||||||||||||
Redemption value of the preferred interest | 0 | 0 | ||||||||||||
Series A Cumulative Redeemable Preferred Stock [Member] | ||||||||||||||
Preferred Units [Line Items] | ||||||||||||||
Preferred stock, shares issued | 25,354 | |||||||||||||
Preferred stock, par value | $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% | |||||||||||||
Preferred stock, shares outstanding | 25,354 | |||||||||||||
Essex Warrant [Member] | ||||||||||||||
Preferred Units [Line Items] | ||||||||||||||
Warrant purchase common stock | 1,900,000 | |||||||||||||
Common stock exercise price | $2.25 | |||||||||||||
Aggregate cash redemption price | 3,200,000 | |||||||||||||
Number of issuable warrant shares redeemed | 900,000 | |||||||||||||
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 | |||||||||||||
Essex Warrant [Member] | Maximum [Member] | ||||||||||||||
Preferred Units [Line Items] | ||||||||||||||
Warrant purchase common stock | 1,900,000 | |||||||||||||
Essex Warrant [Member] | Sotherly Hotels LP [Member] | ||||||||||||||
Preferred Units [Line Items] | ||||||||||||||
Preference share, aggregate redemption price | 4,000,000 | 3,200,000 | ||||||||||||
Preference stock, shares agreed for redemption | 1,000,000 | 900,000 | ||||||||||||
Aggregate cash redemption price | $4,000,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 07, 2014 | |
Operating Leased Assets [Line Items] | ||||
Annual payment for first year | $432,053 | |||
Annual payment for second year | 361,822 | |||
Franchise termination fee recognized | 351,800 | |||
Monthly contribution of room revenues | 3.00% | |||
Williamsburg Virginia [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Area of commercial space leased | 4,836 | |||
Rent expense | 71,039 | 63,393 | 55,000 | |
Lease renewable expiration date | 31-Aug-18 | |||
Maryland [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Area of commercial space leased | 1,632 | |||
Operating lease, expiring date | 28-Feb-17 | |||
Rent expense | 50,277 | 47,813 | 44,927 | |
Annual payment for first year | 22,848 | |||
Annual payment for second year | 45,696 | |||
Percentage increment | 2.75% | |||
Minimum [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Franchise fees of room revenues | 2.50% | |||
Additional fees of room revenues | 2.50% | |||
Franchise agreement expiry date | Sep-15 | |||
Maximum [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Franchise fees of room revenues | 5.00% | |||
Additional fees of room revenues | 6.00% | |||
Franchise agreement expiry date | Oct-24 | |||
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 | 63,468 | 64,700 | 65,812 | |
DoubleTree 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 | 95,482 | 95,482 | 95,482 | |
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 | |||
Crowne Plaza Tampa Westshore [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Operating lease, expiring date | 31-Jul-19 | |||
Rent expense | 2,602 | 3,036 | 2,515 | |
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 | 6,020 | 6,020 | 5,920 | |
Lease agreement | 5 years | |||
Annual payment | 4,961 | |||
New operating lease annual payment | 6,020 | |||
Lease renewable expiration date | 18-Sep-17 | |||
Hilton Wilmington Riverside, Hilton Savannah DeSoto, Double Tree by Hilton Brownstone-University, Sheraton Louisville Riverside and Georgian Terrace Hotel [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 | |||
Georgian Terrace [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Monthly contribution of room revenues | 4.00% | |||
Annual insurance premium | 0.0833 | |||
Sheraton Louisville Riverside [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Monthly contribution of room revenues | 4.00% | |||
Annual insurance premium | 0.0833 | |||
DoubleTree by Hilton Brownstone-University [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Monthly contribution of room revenues | 4.00% | |||
Annual insurance premium | 0.0833 | |||
Crowne Plaza Houston Downtown [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Monthly contribution of room revenues | 4.00% | |||
Crowne Plaza Hampton Marina [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Monthly contribution of room revenues | 4.00% | |||
Double Tree By Hilton Philadelphia Airport [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Monthly contribution of room revenues | 4.00% | |||
Ninety Nine Year Operating Lease Property [Member] | Savannah Hotel Property [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Duration of operating lease term | 99 years | |||
Operating lease, expiring date | 31-Jul-86 | |||
Original lump sum rent payment received | 990 | |||
Rental income recognized during period | $0 | |||
Finance Leases [Member] | Furniture, Fixtures and Equipment [Member] | Minimum [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Financing arrangement expiration date | 28-Feb-14 | |||
Finance Leases [Member] | Furniture, Fixtures and Equipment [Member] | Maximum [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Financing arrangement expiration date | 28-Feb-18 | |||
Six Year Operating Lease Property [Member] | Savannah Hotel 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 $) | Dec. 31, 2014 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
31-Dec-15 | $432,053 |
31-Dec-16 | 361,822 |
31-Dec-17 | 244,244 |
31-Dec-18 | 176,741 |
31-Dec-19 | 100,480 |
December 31, 2020 and thereafter | 636,547 |
Total | $1,951,887 |
Equity_Additional_Information_
Equity - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||||||
Nov. 01, 2014 | Dec. 23, 2013 | Apr. 01, 2013 | Aug. 01, 2012 | 1-May-12 | Sep. 30, 2014 | Aug. 31, 2014 | Dec. 31, 2014 | Jan. 01, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 01, 2014 | Apr. 01, 2014 | Aug. 14, 2013 | Mar. 01, 2013 | Feb. 14, 2014 | Jan. 25, 2013 | Feb. 02, 2012 | Nov. 13, 2013 | |
Director | Directors | Directors | Directors | ||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Preferred stock, shares authorized | 1,000,000 | ||||||||||||||||||
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. | ||||||||||||||||||
Proceeds from sale of common stock | $122,793 | $2,118 | $124,911 | ||||||||||||||||
Common stock, shares outstanding | 10,570,932 | 10,206,927 | |||||||||||||||||
Common stock exchange ratio | 1 | ||||||||||||||||||
Redemption of units in operating partnership | 1,000,000 | 10,000 | 6,000 | 6,000 | |||||||||||||||
Number of board of director | 2 | 2 | 2 | 2 | |||||||||||||||
Operating Partnership stock redemption value | 25,621 | 32,900 | 21,540 | 14,640 | |||||||||||||||
Number of units | 32,929 | ||||||||||||||||||
Operating Partnership units not owned | 2,550,827 | 2,864,127 | |||||||||||||||||
Series A Cumulative Redeemable Preferred Stock [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Preferred stock, shares authorized | 27,650 | ||||||||||||||||||
Sotherly Hotels LP [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Number of issued unit in Operating Partnership | 30,000 | ||||||||||||||||||
Operating Partnership stock redemption value | 25,621 | 32,900 | 36,180 | ||||||||||||||||
Number of units | 12,990,541 | 12,940,343 | |||||||||||||||||
Operating Partnership units outstanding | 13,121,759 | 13,038,125 | |||||||||||||||||
Fair market value | $19,100,000 | $17,000,000 | |||||||||||||||||
Operating Partnership [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Warrants granted for the period | 0 | ||||||||||||||||||
Chief Financial Officer [Member] | Sotherly Hotels LP [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Restricted shares issued | 30,000 | ||||||||||||||||||
Common Stock [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Conversion of units in Operating Partnership to shares of common stock, shares | 31,641 | 310,000 | 131,641 | 200,000 | 110,000 | 50,000 | 50,000 | ||||||||||||
Common stock, shares issued | 16,979 | 276 | 17,255 | ||||||||||||||||
Restricted shares issued | 12,000 | 46,000 | |||||||||||||||||
Warrants granted for the period | 0 | ||||||||||||||||||
Redemption of units in operating partnership | 3,300 | ||||||||||||||||||
Common Stock [Member] | Sotherly Hotels LP [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Number of issued unit in Operating Partnership | 36,750 | 45,500 | 46,000 | ||||||||||||||||
Common Stock [Member] | Executive Officer [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Non-restricted shares issued | 24,000 | ||||||||||||||||||
Common Stock [Member] | Director [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Non-restricted shares issued | 750 | 1,500 | |||||||||||||||||
Restricted shares issued | 12,000 | 15,000 | 15,000 | ||||||||||||||||
Common Stock [Member] | Executives and Employees [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Non-restricted shares issued | 30,500 | 29,500 |
Equity_Quarterly_Distributions
Equity - Quarterly Distributions Declared and Payable by Operating Partnership (Detail) (Sotherly Hotels LP [Member], USD $) | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 |
Sotherly Hotels LP [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Dividends payable amount per share | $0.07 | $0.07 | $0.05 | $0.05 | $0.05 | $0.04 | $0.04 | $0.04 | $0.03 | $0.03 | $0.02 | $0.02 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | ||||||||||||||
Dec. 23, 2013 | Apr. 01, 2013 | Aug. 01, 2012 | Jun. 15, 2012 | 1-May-12 | Dec. 21, 2011 | Dec. 31, 2014 | Dec. 21, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 23, 2013 | Dec. 21, 2004 | Nov. 30, 2013 | Mar. 26, 2014 | Sep. 30, 2013 | Aug. 01, 2013 | Mar. 26, 2013 | Jun. 18, 2012 | |
Related Party Transaction [Line Items] | ||||||||||||||||||
Due from Chesapeake Hospitality | $197,674 | $209,947 | ||||||||||||||||
Percentage of management fees due thereafter | 2.50% | |||||||||||||||||
Percentage of management fee due through 2017 | 2.65% | |||||||||||||||||
Asset management fee as percentage of revenue | 1.50% | |||||||||||||||||
Asset management fee payable | 73,278 | 74,464 | 20,229 | |||||||||||||||
Redemption of units in operating partnership | 1,000,000 | 10,000 | 6,000 | 6,000 | ||||||||||||||
Operating Partnership stock redemption value | 25,621 | 32,900 | 36,180 | |||||||||||||||
Operating partnership valued | 153,636 | |||||||||||||||||
Amendment to bridge loan agreement | 10,000,000 | 19,000,000 | ||||||||||||||||
Extension in loan agreement | 17 months | |||||||||||||||||
Extended maturity date of mortgage loan | 31-May-13 | |||||||||||||||||
Amount of prepayment | 1,500,000 | |||||||||||||||||
Amount of undrawn term loan commitments | 7,000,000 | |||||||||||||||||
Reserved to repay principal amounts outstanding on the Crowne Plaza Jacksonville Riverfront hotel property | 2,000,000 | |||||||||||||||||
Preference stock, shares agreed for redemption | 11,514 | 2,460 | 1,902 | 11,514 | ||||||||||||||
Preference share, aggregate redemption price | 12,300,000 | 10,700,000 | 2,700,000 | 2,100,000 | 12,300,000 | |||||||||||||
Prepayment fee pursuant to the provisions of the articles supplementary | 700,000 | 200,000 | 200,000 | 800,000 | ||||||||||||||
Aggregate cash redemption price | 4,000,000 | |||||||||||||||||
Total compensation for related parties | 204,000 | 94,000 | ||||||||||||||||
8.0% Senior Unsecured Notes [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Notes offering | 8.00% | |||||||||||||||||
Crowne Plaza Hollywood Beach Resort [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Due from Chesapeake Hospitality | 146,836 | 108,507 | ||||||||||||||||
Percentage of operating partnership owned | 25.00% | |||||||||||||||||
Sotherly Hotels LP [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Due from Chesapeake Hospitality | 197,674 | 209,947 | ||||||||||||||||
Preference share, aggregate redemption price | 10,700,000 | |||||||||||||||||
Essex Warrant [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Aggregate cash redemption price | 3,200,000 | |||||||||||||||||
Essex Warrant [Member] | Sotherly Hotels LP [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Preference stock, shares agreed for redemption | 1,000,000 | 900,000 | ||||||||||||||||
Preference share, aggregate redemption price | 4,000,000 | 3,200,000 | ||||||||||||||||
Aggregate cash redemption price | 4,000,000 | |||||||||||||||||
Board of Directors [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Redemption of units in operating partnership | 3,300 | |||||||||||||||||
Number of former members controlled by related party | 1 | |||||||||||||||||
Operating Partnership stock redemption value | 25,621 | |||||||||||||||||
Master Agreement [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Agreement term | 5 years | |||||||||||||||||
Crowne Plaza Houston Downtown and Georgian Terrace Hotel [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Percentage of management fee due through 2015 | 2.00% | |||||||||||||||||
Percentage of management fee due in 2016 | 2.25% | |||||||||||||||||
Percentage of management fees due thereafter | 2.50% | |||||||||||||||||
Chesapeake Hospitality [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Company's outstanding common stock owned by members of Chesapeake Hospitality | 10.00% | |||||||||||||||||
Operating Partnership units owned by members of Chesapeake Hospitality | 1,642,958 | |||||||||||||||||
Company's common stock shares owned by members of Chesapeake Hospitality | 1,054,404 | |||||||||||||||||
Due from Chesapeake Hospitality | 50,838 | 101,439 | ||||||||||||||||
Leasehold revenue | 350,000 | 350,000 | 350,000 | |||||||||||||||
Expiry date of leasehold interests | 31-Dec-11 | |||||||||||||||||
Strategic alliance agreement term | 10 years | |||||||||||||||||
Agreement expire date | 15-Dec-14 | |||||||||||||||||
Expiry date of master management agreement | Between December 2014 and March 2019 | |||||||||||||||||
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% | |||||||||||||||||
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% | |||||||||||||||||
Base management fees earned by related party | 3,342,782 | 2,652,070 | 2,602,018 | |||||||||||||||
Incentive management fees earned by related party | 97,025 | 67,502 | 216,824 | |||||||||||||||
Employee medical benefits paid | 3,748,587 | 2,592,115 | 2,344,734 | |||||||||||||||
Expiry date of management agreement | Aug-17 | |||||||||||||||||
Management fee | 3.00% | |||||||||||||||||
Base management fees | 592,119 | 560,847 | 508,421 | |||||||||||||||
Chesapeake Hospitality [Member] | Aggregate Basis [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Number of hotels | 8 | |||||||||||||||||
Chesapeake Hospitality [Member] | Individual Basis [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Number of hotels | 2 | |||||||||||||||||
Chesapeake Hospitality [Member] | Individual Hotel Management Agreements [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Management fee of gross revenues for first full fiscal year | 2.00% | |||||||||||||||||
Management fee of gross revenues for second full fiscal year | 2.25% | |||||||||||||||||
Management fee of gross revenues for every year thereafter | 2.50% | |||||||||||||||||
Chesapeake Hospitality [Member] | Georgian Terrace [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Administrative fee per year | 30,000 | |||||||||||||||||
MHI Hotels Services [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Limited partnership interest purchased | 1.00% | |||||||||||||||||
Limited partnership interest purchased, unit | 32,929 | |||||||||||||||||
Operating partnership valued | 153,636 | |||||||||||||||||
MHI Hospitality TRS II, LLC [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Asset management fee paid | $300,607 | $280,274 | $255,707 |
Retirement_Plans_Additional_In
Retirement Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
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 | $40,586 | $47,094 | $54,865 |
Unconsolidated_Joint_Venture_A
Unconsolidated Joint Venture - Additional Information (Detail) (Crowne Plaza Hollywood Beach Resort [Member]) | Dec. 31, 2014 |
Crowne Plaza Hollywood Beach Resort [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Percentage of indirect interest owned | 25.00% |
Unconsolidated_Joint_Venture_S
Unconsolidated Joint Venture - Summarized Financial Information of Investment (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
ASSETS | ||
Investment in hotel property, net | $62,823,142 | $64,449,892 |
Cash and cash equivalents | 2,153,906 | 2,780,427 |
Restricted cash | 874,111 | 116,414 |
Accounts receivable | 328,755 | 304,687 |
Prepaid expenses, inventory and other assets | 1,489,479 | 1,567,372 |
TOTAL ASSETS | 67,669,393 | 69,218,792 |
LIABILITIES | ||
Mortgage loan, net | 57,000,000 | 57,000,000 |
Accounts payable and other accrued liabilities | 2,195,613 | 2,131,176 |
Accounts payable and other accrued liabilities, member | 146,836 | 108,507 |
Advance deposits | 398,695 | 280,339 |
TOTAL LIABILITIES | 59,741,144 | 59,520,022 |
TOTAL MEMBERS' EQUITY | 7,928,249 | 9,698,770 |
TOTAL LIABILITIES AND MEMBERS' EQUITY | 67,669,393 | 69,218,792 |
Revenue | ||
Rooms department | 15,386,595 | 14,732,609 |
Food and beverage department | 2,968,395 | 2,506,852 |
Other operating departments | 1,385,469 | 1,445,446 |
Total revenue | 19,740,459 | 18,684,907 |
Hotel operating expenses | ||
Rooms department | 3,270,930 | 3,113,347 |
Food and beverage department | 2,270,918 | 1,983,090 |
Other operating departments | 655,818 | 580,150 |
Indirect | 7,436,198 | 7,093,576 |
Total hotel operating expenses | 13,633,864 | 12,770,163 |
Depreciation and amortization | 2,116,211 | 2,182,667 |
General and administrative | 148,873 | 119,338 |
Total operating expenses | 15,898,948 | 15,072,168 |
Operating income | 3,841,511 | 3,612,739 |
Interest expense | -2,612,032 | -1,754,851 |
Loss on extinguishment of debt | -419,880 | |
Unrealized gain (loss) on hedging activities | 359,993 | |
Net income (loss) | $1,229,479 | $1,798,001 |
Indirect_Hotel_Operating_Expen2
Indirect Hotel Operating Expenses - Summary of Indirect Hotel Operating Expenses (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Component Of Operating Cost And Expense [Line Items] | |||
Total indirect hotel operating expenses | $45,072,491 | $33,757,896 | $33,033,820 |
General and Administrative [Member] | |||
Component Of Operating Cost And Expense [Line Items] | |||
Total indirect hotel operating expenses | 9,823,853 | 7,258,817 | 6,916,268 |
Sales and Marketing [Member] | |||
Component Of Operating Cost And Expense [Line Items] | |||
Total indirect hotel operating expenses | 9,788,079 | 7,497,693 | 7,143,116 |
Repairs and Maintenance [Member] | |||
Component Of Operating Cost And Expense [Line Items] | |||
Total indirect hotel operating expenses | 6,278,411 | 4,705,222 | 4,617,726 |
Utilities [Member] | |||
Component Of Operating Cost And Expense [Line Items] | |||
Total indirect hotel operating expenses | 5,763,990 | 4,301,755 | 4,425,441 |
Franchise Fees [Member] | |||
Component Of Operating Cost And Expense [Line Items] | |||
Total indirect hotel operating expenses | 4,122,726 | 3,098,379 | 2,866,438 |
Management Fees, Including Incentive [Member] | |||
Component Of Operating Cost And Expense [Line Items] | |||
Total indirect hotel operating expenses | 3,439,807 | 2,719,573 | 2,818,842 |
Property Taxes [Member] | |||
Component Of Operating Cost And Expense [Line Items] | |||
Total indirect hotel operating expenses | 3,664,022 | 2,480,909 | 2,643,931 |
Insurance [Member] | |||
Component Of Operating Cost And Expense [Line Items] | |||
Total indirect hotel operating expenses | 1,927,935 | 1,447,485 | 1,369,800 |
Other [Member] | |||
Component Of Operating Cost And Expense [Line Items] | |||
Total indirect hotel operating expenses | $263,668 | $248,063 | $232,258 |
Income_Taxes_Components_of_Pro
Income Taxes - Components of Provision for (Benefit from) Income Taxes (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Current: | |||
Federal | $68,431 | ($30,467) | |
State and local | 233,940 | 57,476 | 2,461 |
Total | 233,940 | 125,907 | -28,006 |
Deferred: | |||
Federal | -1,718,351 | 1,078,543 | 1,006,568 |
State and local | -243,312 | 291,646 | 267,835 |
Total | -1,961,663 | 1,370,189 | 1,274,403 |
Income tax provision (benefit) | ($1,727,723) | $1,496,096 | $1,246,397 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Statutory Federal Income Tax Provision (Benefit) (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Statutory federal income tax benefit | ($838,519) | ($1,012,349) | ($1,415,538) |
Effect of non-taxable REIT (income) loss | -898,576 | 2,159,323 | 2,391,639 |
State income tax provision | 9,372 | 349,122 | 270,296 |
Income tax provision (benefit) | ($1,727,723) | $1,496,096 | $1,246,397 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ||
Deferred tax asset | $3,543,295 | $1,581,632 |
Accumulated net operating losses | 2,700,000 | 2,800,000 |
Start-up expense related to company | 200,000 | 300,000 |
Amortized period | 15 years | |
Loss carryforwards, expired | 2028 | |
Valuation allowance | $0 |
Loss_Per_Share_and_Per_Unit_Co
Loss Per Share and Per Unit - Computation of Basic and Diluted Loss Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Numerator | |||||||
Net loss attributable to the Company for basic and diluted computation | ($584,671) | ($3,483,969) | ($4,167,877) | ||||
Denominator | |||||||
Weighted average number of common shares outstanding | 10,377,125 | 10,156,955 | 9,995,638 | ||||
Basic and diluted net loss per share | ($0.32) | ($0.02) | $0.21 | $0.08 | ($0.06) | ($0.34) | ($0.42) |
Loss_Per_Share_and_Per_Unit_Co1
Loss Per Share and Per Unit - Computation of Basic and Diluted Loss Per Unit (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Earnings Per Share [Abstract] | |||||||
Net loss | ($738,509) | ($4,473,592) | ($5,409,745) | ||||
Weighted average number of units outstanding | 13,107,413 | 13,042,020 | 12,973,953 | ||||
Basic and diluted net loss per unit | ($0.32) | ($0.02) | $0.21 | $0.08 | ($0.06) | ($0.34) | ($0.42) |
Quarterly_Operating_Results_Un2
Quarterly Operating Results (Unaudited) - Quarterly Operating Results (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenue | $29,825,377 | $31,764,453 | $36,339,701 | $25,010,389 | $22,475,435 | $21,458,637 | $25,250,643 | $20,189,812 | $122,939,919 | $89,374,527 | $87,343,220 |
Total operating expenses | 30,441,730 | 28,622,841 | 29,120,620 | 22,249,394 | 21,251,928 | 19,123,547 | 20,285,017 | 18,306,556 | 110,434,588 | 78,967,048 | 77,181,170 |
Net operating income (loss) | -616,353 | 3,141,612 | 7,219,081 | 2,760,995 | 1,223,507 | 2,335,090 | 4,965,626 | 1,883,256 | 12,505,331 | 10,407,479 | 10,162,050 |
Net income (loss) attributable to the Company | ($3,319,460) | ($214,902) | $2,166,689 | $783,002 | ($549,923) | ($1,649,722) | $1,310,592 | ($2,594,916) | ($584,671) | ($3,483,969) | ($4,167,877) |
Earnings (loss) per share - basic | ($0.05) | ($0.16) | $0.13 | ($0.26) | |||||||
Earnings (loss) per share - basic and diluted | ($0.32) | ($0.02) | $0.21 | $0.08 | ($0.06) | ($0.34) | ($0.42) | ||||
Earnings (loss) per share - diluted | ($0.05) | ($0.16) | $0.12 | ($0.26) |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 0 Months Ended | ||||||
Dec. 23, 2013 | Apr. 01, 2013 | Aug. 01, 2012 | 1-May-12 | Apr. 01, 2015 | Jan. 28, 2015 | Jan. 09, 2015 | |
Subsequent Event [Line Items] | |||||||
Capital units redeemed by holder | 1,000,000 | 10,000 | 6,000 | 6,000 | |||
Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Dividend paid | $0.07 | ||||||
Dividends payable, date of record | 13-Mar-15 | 15-Dec-14 | |||||
Dividend distributed | $0.07 | ||||||
Dividend payment date | 10-Apr-15 | ||||||
Capital units redeemed by holder | 100,000 |
Schedule_III_Real_Estate_and_A1
Schedule III - Real Estate and Accumulated Depreciation - Real Estate and Accumulated Depreciation (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $205,292 | |||
Initial Costs, Land | 35,788 | |||
Initial Costs, Building & Improvements | 174,750 | |||
Costs Capitalized Subsequent to Acquisition, Land | 1,695 | |||
Costs Capitalized Subsequent to Acquisition, Building & Improvements | 82,594 | |||
Gross Amount at End of Year, Land | 37,483 | |||
Gross Amount at End of Year, Building & Improvements | 257,344 | |||
Gross Amount at End of Year, Total | 294,827 | 233,060 | 200,639 | 198,959 |
Accumulated Depreciation & Impairment | -53,233 | |||
Crowne Plaza Hampton Marina - Hampton, Virginia [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Description | Crowne Plaza Hampton Marina - Hampton, Virginia | |||
Encumbrances | 4,510 | |||
Initial Costs, Land | 1,061 | |||
Initial Costs, Building & Improvements | 6,733 | |||
Costs Capitalized Subsequent to Acquisition, Land | 33 | |||
Costs Capitalized Subsequent to Acquisition, Building & Improvements | 3,615 | |||
Gross Amount at End of Year, Land | 1,094 | |||
Gross Amount at End of Year, Building & Improvements | 10,348 | |||
Gross Amount at End of Year, Total | 11,442 | |||
Accumulated Depreciation & Impairment | -6,024 | |||
Date of Construction | 1988 | |||
Date Acquired | 2008 | |||
Crowne Plaza Houston Downtown - Houston, Texas [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Description | Crowne Plaza Houston Downtown - Houston, Texas | |||
Encumbrances | 20,955 | |||
Initial Costs, Land | 7,374 | |||
Initial Costs, Building & Improvements | 22,185 | |||
Costs Capitalized Subsequent to Acquisition, Building & Improvements | 1,038 | |||
Gross Amount at End of Year, Land | 7,374 | |||
Gross Amount at End of Year, Building & Improvements | 23,223 | |||
Gross Amount at End of Year, Total | 30,597 | |||
Accumulated Depreciation & Impairment | -762 | |||
Date of Construction | 1963 | |||
Date Acquired | 2013 | |||
Crowne Plaza Jacksonville Riverfront - Jacksonville, Florida [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Description | Crowne Plaza Jacksonville Riverfront - Jacksonville, Florida | |||
Encumbrances | 16,359 | |||
Initial Costs, Land | 7,090 | |||
Initial Costs, Building & Improvements | 14,604 | |||
Costs Capitalized Subsequent to Acquisition, Land | 51 | |||
Costs Capitalized Subsequent to Acquisition, Building & Improvements | 5,210 | |||
Gross Amount at End of Year, Land | 7,141 | |||
Gross Amount at End of Year, Building & Improvements | 19,814 | |||
Gross Amount at End of Year, Total | 26,955 | |||
Accumulated Depreciation & Impairment | -4,438 | |||
Date of Construction | 1970 | |||
Date Acquired | 2005 | |||
Crowne Plaza Tampa Westshore - Tampa, Florida [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Description | Crowne Plaza Tampa Westshore - Tampa, Florida | |||
Encumbrances | 13,318 | |||
Initial Costs, Land | 4,153 | |||
Initial Costs, Building & Improvements | 9,670 | |||
Costs Capitalized Subsequent to Acquisition, Land | 283 | |||
Costs Capitalized Subsequent to Acquisition, Building & Improvements | 22,038 | |||
Gross Amount at End of Year, Land | 4,436 | |||
Gross Amount at End of Year, Building & Improvements | 31,708 | |||
Gross Amount at End of Year, Total | 36,144 | |||
Accumulated Depreciation & Impairment | -5,720 | |||
Date of Construction | 1973 | |||
Date Acquired | 2007 | |||
DoubleTree By Hilton Philadelphia Airport - Philadelphia, Pennsylvania [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Description | DoubleTree by Hilton Philadelphia Airport - Philadelphia, Pennsylvania | |||
Encumbrances | 33,378 | |||
Initial Costs, Land | 2,100 | |||
Initial Costs, Building & Improvements | 22,031 | |||
Costs Capitalized Subsequent to Acquisition, Land | 184 | |||
Costs Capitalized Subsequent to Acquisition, Building & Improvements | 5,473 | |||
Gross Amount at End of Year, Land | 2,284 | |||
Gross Amount at End of Year, Building & Improvements | 27,504 | |||
Gross Amount at End of Year, Total | 29,788 | |||
Accumulated Depreciation & Impairment | -6,973 | |||
Date of Construction | 1972 | |||
Date Acquired | 2004 | |||
DoubleTree By Hilton Brownstone - University-Raleigh, North Carolina [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Description | DoubleTree by Hilton Brownstone - University - Raleigh, North Carolina | |||
Encumbrances | 15,274 | |||
Initial Costs, Land | 815 | |||
Initial Costs, Building & Improvements | 7,416 | |||
Costs Capitalized Subsequent to Acquisition, Land | 203 | |||
Costs Capitalized Subsequent to Acquisition, Building & Improvements | 4,993 | |||
Gross Amount at End of Year, Land | 1,018 | |||
Gross Amount at End of Year, Building & Improvements | 12,409 | |||
Gross Amount at End of Year, Total | 13,427 | |||
Accumulated Depreciation & Impairment | -3,816 | |||
Date of Construction | 1971 | |||
Date Acquired | 2004 | |||
Georgian Terrace - Atlanta, Georgia [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Description | Georgian Terrace - Atlanta, Georgia | |||
Encumbrances | 41,500 | |||
Initial Costs, Land | 10,128 | |||
Initial Costs, Building & Improvements | 45,386 | |||
Costs Capitalized Subsequent to Acquisition, Land | 308 | |||
Costs Capitalized Subsequent to Acquisition, Building & Improvements | 880 | |||
Gross Amount at End of Year, Land | 10,436 | |||
Gross Amount at End of Year, Building & Improvements | 46,266 | |||
Gross Amount at End of Year, Total | 56,702 | |||
Accumulated Depreciation & Impairment | -895 | |||
Date of Construction | 1911 | |||
Date Acquired | 2014 | |||
Hilton Savannah DeSoto - Savannah, Georgia [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Description | Hilton Savannah DeSoto - Savannah, Georgia | |||
Encumbrances | 21,050 | |||
Initial Costs, Land | 600 | |||
Initial Costs, Building & Improvements | 13,562 | |||
Costs Capitalized Subsequent to Acquisition, Land | 14 | |||
Costs Capitalized Subsequent to Acquisition, Building & Improvements | 11,392 | |||
Gross Amount at End of Year, Land | 614 | |||
Gross Amount at End of Year, Building & Improvements | 24,954 | |||
Gross Amount at End of Year, Total | 25,568 | |||
Accumulated Depreciation & Impairment | -7,109 | |||
Date of Construction | 1968 | |||
Date Acquired | 2004 | |||
Hilton Wilmington Riverside - Wilmington, North Carolina [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Description | Hilton Wilmington Riverside - Wilmington, North Carolina | |||
Encumbrances | 20,389 | |||
Initial Costs, Land | 785 | |||
Initial Costs, Building & Improvements | 16,829 | |||
Costs Capitalized Subsequent to Acquisition, Land | 222 | |||
Costs Capitalized Subsequent to Acquisition, Building & Improvements | 10,793 | |||
Gross Amount at End of Year, Land | 1,007 | |||
Gross Amount at End of Year, Building & Improvements | 27,622 | |||
Gross Amount at End of Year, Total | 28,629 | |||
Accumulated Depreciation & Impairment | -9,638 | |||
Date of Construction | 1970 | |||
Date Acquired | 2004 | |||
Holiday Inn Laurel West - Laurel, Maryland [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Description | Holiday Inn Laurel West - Laurel, Maryland | |||
Encumbrances | 6,974 | |||
Initial Costs, Land | 900 | |||
Initial Costs, Building & Improvements | 9,443 | |||
Costs Capitalized Subsequent to Acquisition, Land | 187 | |||
Costs Capitalized Subsequent to Acquisition, Building & Improvements | 2,567 | |||
Gross Amount at End of Year, Land | 1,087 | |||
Gross Amount at End of Year, Building & Improvements | 12,010 | |||
Gross Amount at End of Year, Total | 13,097 | |||
Accumulated Depreciation & Impairment | -3,637 | |||
Date of Construction | 1985 | |||
Date Acquired | 2004 | |||
Sheraton Louisville Riverside - Jeffersonville, Indiana [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Description | Sheraton Louisville Riverside - Jeffersonville, Indiana | |||
Encumbrances | 11,585 | |||
Initial Costs, Land | 782 | |||
Initial Costs, Building & Improvements | 6,891 | |||
Costs Capitalized Subsequent to Acquisition, Land | 210 | |||
Costs Capitalized Subsequent to Acquisition, Building & Improvements | 14,595 | |||
Gross Amount at End of Year, Land | 992 | |||
Gross Amount at End of Year, Building & Improvements | 21,486 | |||
Gross Amount at End of Year, Total | 22,478 | |||
Accumulated Depreciation & Impairment | ($4,221) | |||
Date of Construction | 1972 | |||
Date Acquired | 2006 | |||
Minimum [Member] | Crowne Plaza Hampton Marina - Hampton, Virginia [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on Which Depreciation is Computed | 3 years | |||
Minimum [Member] | Crowne Plaza Houston Downtown - Houston, Texas [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on Which Depreciation is Computed | 3 years | |||
Minimum [Member] | Crowne Plaza Jacksonville Riverfront - Jacksonville, Florida [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on Which Depreciation is Computed | 3 years | |||
Minimum [Member] | Crowne Plaza Tampa Westshore - Tampa, Florida [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on Which Depreciation is Computed | 3 years | |||
Minimum [Member] | DoubleTree By Hilton Philadelphia Airport - Philadelphia, Pennsylvania [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on Which Depreciation is Computed | 3 years | |||
Minimum [Member] | DoubleTree By Hilton Brownstone - University-Raleigh, North Carolina [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on Which Depreciation is Computed | 3 years | |||
Minimum [Member] | Georgian Terrace - Atlanta, Georgia [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on Which Depreciation is Computed | 3 years | |||
Minimum [Member] | Hilton Savannah DeSoto - Savannah, Georgia [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on Which Depreciation is Computed | 3 years | |||
Minimum [Member] | Hilton Wilmington Riverside - Wilmington, North Carolina [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on Which Depreciation is Computed | 3 years | |||
Minimum [Member] | Holiday Inn Laurel West - Laurel, Maryland [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on Which Depreciation is Computed | 3 years | |||
Minimum [Member] | Sheraton Louisville Riverside - Jeffersonville, Indiana [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on Which Depreciation is Computed | 3 years | |||
Maximum [Member] | Crowne Plaza Hampton Marina - Hampton, Virginia [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on Which Depreciation is Computed | 39 years | |||
Maximum [Member] | Crowne Plaza Houston Downtown - Houston, Texas [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on Which Depreciation is Computed | 39 years | |||
Maximum [Member] | Crowne Plaza Jacksonville Riverfront - Jacksonville, Florida [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on Which Depreciation is Computed | 39 years | |||
Maximum [Member] | Crowne Plaza Tampa Westshore - Tampa, Florida [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on Which Depreciation is Computed | 39 years | |||
Maximum [Member] | DoubleTree By Hilton Philadelphia Airport - Philadelphia, Pennsylvania [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on Which Depreciation is Computed | 39 years | |||
Maximum [Member] | DoubleTree By Hilton Brownstone - University-Raleigh, North Carolina [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on Which Depreciation is Computed | 39 years | |||
Maximum [Member] | Georgian Terrace - Atlanta, Georgia [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on Which Depreciation is Computed | 39 years | |||
Maximum [Member] | Hilton Savannah DeSoto - Savannah, Georgia [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on Which Depreciation is Computed | 39 years | |||
Maximum [Member] | Hilton Wilmington Riverside - Wilmington, North Carolina [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on Which Depreciation is Computed | 39 years | |||
Maximum [Member] | Holiday Inn Laurel West - Laurel, Maryland [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on Which Depreciation is Computed | 39 years | |||
Maximum [Member] | Sheraton Louisville Riverside - Jeffersonville, Indiana [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on Which Depreciation is Computed | 39 years |
Schedule_III_Real_Estate_and_A2
Schedule III - Real Estate and Accumulated Depreciation - Reconciliation of Real Estate and Accumulated Depreciation (Detail) (USD $) | 12 Months Ended | 144 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | |
Reconciliation of Real Estate | ||||
Beginning Balance | $233,060,000 | $200,639,000 | $198,959,000 | |
Acquisitions | 55,514,000 | 29,559,000 | ||
Improvements | 6,430,000 | 3,290,000 | 1,807,000 | |
Disposal of Assets | -177,000 | -428,000 | -127,000 | |
Ending Balance | 294,827,000 | 233,060,000 | 200,639,000 | 294,827,000 |
Reconciliation of Accumulated Depreciation | ||||
Beginning Balance | 42,557,000 | 36,677,000 | 31,304,000 | |
Current Expense | 5,604,000 | 5,500,000 | 7,602,000 | |
Impairment | 3,175,000 | 611,000 | 3,175,000 | |
Disposal of Assets | -335,000 | -127,000 | -101,000 | |
Ending Balance | $53,233,000 | $42,557,000 | $36,677,000 | $53,233,000 |