Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 10, 2018 | Jun. 30, 2017 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SOHO | ||
Entity Registrant Name | SOTHERLY HOTELS INC. | ||
Entity Central Index Key | 1,301,236 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 14,121,081 | ||
Entity Public Float | $ 78,880,056 | ||
Sotherly Hotels LP [Member] | |||
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | SOTHERLY HOTELS LP | ||
Entity Central Index Key | 1,301,236 | ||
Current Fiscal Year End Date | --12-31 | ||
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, 2017 | Dec. 31, 2016 |
ASSETS | ||
Investment in hotel properties, net | $ 357,799,512 | $ 348,593,912 |
Investment in hotel properties held for sale, net | 5,333,000 | |
Cash and cash equivalents | 29,777,845 | 31,766,775 |
Restricted cash | 3,651,197 | 4,596,145 |
Accounts receivable, net | 5,587,077 | 4,127,748 |
Accounts receivable - affiliate | 394,026 | 4,175 |
Prepaid expenses, inventory and other assets | 7,292,565 | 4,648,469 |
Deferred income taxes | 5,451,118 | 6,949,340 |
TOTAL ASSETS | 409,953,340 | 406,019,564 |
LIABILITIES | ||
Mortgage loans, net | 297,318,816 | 282,708,289 |
Unsecured notes, net | 24,308,713 | |
Accounts payable and accrued liabilities | 13,813,623 | 12,970,960 |
Advance deposits | 1,572,388 | 2,315,787 |
Dividends and distributions payable | 3,073,483 | 2,376,527 |
TOTAL LIABILITIES | 315,778,310 | 324,680,276 |
Commitments and contingencies (See Note 6) | ||
Sotherly Hotels Inc. stockholders’ equity | ||
Common stock, par value $0.01, 49,000,000 shares authorized, 14,078,831 shares and 14,468,551 shares issued and outstanding at December 31, 2017 and 2016, respectively | 140,788 | 144,685 |
Additional paid-in capital | 146,249,339 | 118,395,082 |
Unearned ESOP shares | (4,633,112) | |
Distributions in excess of retained earnings | (48,765,860) | (39,545,754) |
Total Sotherly Hotels Inc. stockholders’ equity | 93,020,255 | 79,010,113 |
Noncontrolling interest | 1,154,775 | 2,329,175 |
TOTAL EQUITY | 94,175,030 | 81,339,288 |
TOTAL LIABILITIES AND EQUITY | 409,953,340 | 406,019,564 |
Sotherly Hotels LP [Member] | ||
ASSETS | ||
Investment in hotel properties, net | 357,799,512 | 348,593,912 |
Investment in hotel properties held for sale, net | 5,333,000 | |
Cash and cash equivalents | 29,777,845 | 31,766,775 |
Restricted cash | 3,651,197 | 4,596,145 |
Accounts receivable, net | 5,587,077 | 4,127,748 |
Accounts receivable - affiliate | 394,026 | 4,175 |
Loan receivable - affiliate | 4,650,969 | |
Prepaid expenses, inventory and other assets | 7,292,565 | 4,648,469 |
Deferred income taxes | 5,451,118 | 6,949,340 |
TOTAL ASSETS | 414,604,309 | 406,019,564 |
LIABILITIES | ||
Mortgage loans, net | 297,318,816 | 282,708,289 |
Unsecured notes, net | 24,308,713 | |
Accounts payable and accrued liabilities | 13,813,623 | 12,970,960 |
Advance deposits | 1,572,388 | 2,315,787 |
Dividends and distributions payable | 3,119,027 | 2,376,527 |
TOTAL LIABILITIES | 315,823,854 | 324,680,276 |
Commitments and contingencies (See Note 6) | ||
Sotherly Hotels Inc. stockholders’ equity | ||
TOTAL LIABILITIES AND EQUITY | 414,604,309 | 406,019,564 |
PARTNERS’ CAPITAL | ||
General Partner: 158,570 units and 162,467 units issued and outstanding as of December 31, 2017 and 2016, respectively | 586,725 | 681,389 |
Limited Partners: 15,698,401 units and 16,084,224 units issued and outstanding as of December 31, 2017 and 2016, respectively | 29,938,539 | 42,891,368 |
TOTAL PARTNERS’ CAPITAL | 98,780,455 | 81,339,288 |
Sotherly Hotels LP [Member] | 8% Series B Cumulative Redeemable Perpetual Preferred Units [Member] | ||
PARTNERS’ CAPITAL | ||
Preferred units, $0.01 par value, 11,000,000 units authorized; | 37,766,531 | 37,766,531 |
Sotherly Hotels LP [Member] | 7.875% Series C Cumulative Redeemable Perpetual Preferred Units [Member] | ||
PARTNERS’ CAPITAL | ||
Preferred units, $0.01 par value, 11,000,000 units authorized; | 30,488,660 | |
8.0% Series B Cumulative Redeemable Perpetual Preferred Stock [Member] | ||
Sotherly Hotels Inc. stockholders’ equity | ||
Preferred stock, $0.01 par value, 11,000,000 shares authorized; | 16,100 | $ 16,100 |
7.875% Series C Cumulative Redeemable Perpetual Preferred Stock [Member] | ||
Sotherly Hotels Inc. stockholders’ equity | ||
Preferred stock, $0.01 par value, 11,000,000 shares authorized; | $ 13,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Preferred stock, shares authorized | 11,000,000 | 11,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 49,000,000 | 49,000,000 |
Common stock, shares issued | 14,078,831 | 14,468,551 |
Common stock, shares outstanding | 14,078,831 | 14,468,551 |
Sotherly Hotels LP [Member] | ||
General Partner, units issued | 158,570 | 162,467 |
General Partner, units outstanding | 158,570 | 162,467 |
Limited Partner, units issued | 15,698,401 | 16,084,224 |
Limited Partner, units outstanding | 15,698,401 | 16,084,224 |
Sotherly Hotels LP [Member] | 8% Series B Cumulative Redeemable Perpetual Preferred Units [Member] | ||
Preferred units, par value | $ 0.01 | $ 0.01 |
Preferred units, authorized | 11,000,000 | 11,000,000 |
Preferred units, dividend rate percentage | 8.00% | 8.00% |
Preferred units, liquidation preference per units | $ 25 | $ 25 |
Preferred units, issued | 1,610,000 | 1,610,000 |
Preferred units, outstanding | 1,610,000 | 1,610,000 |
Sotherly Hotels LP [Member] | 7.875% Series C Cumulative Redeemable Perpetual Preferred Units [Member] | ||
Preferred units, par value | $ 0.01 | $ 0.01 |
Preferred units, authorized | 11,000,000 | 11,000,000 |
Preferred units, dividend rate percentage | 7.875% | 7.875% |
Preferred units, liquidation preference per units | $ 25 | $ 25 |
Preferred units, issued | 1,300,000 | 0 |
Preferred units, outstanding | 1,300,000 | 0 |
8.0% Series B Cumulative Redeemable Perpetual Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 11,000,000 | 11,000,000 |
Preferred stock, dividend rate percentage | 8.00% | 8.00% |
Preferred stock, liquidation preference per share | $ 25 | $ 25 |
Preferred stock, shares issued | 1,610,000 | 1,610,000 |
Preferred stock, shares outstanding | 1,610,000 | 1,610,000 |
7.875% Series C Cumulative Redeemable Perpetual Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 11,000,000 | 11,000,000 |
Preferred stock, dividend rate percentage | 7.875% | 7.875% |
Preferred stock, liquidation preference per share | $ 25 | $ 25 |
Preferred stock, shares issued | 1,300,000 | 0 |
Preferred stock, shares outstanding | 1,300,000 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
REVENUE | |||
Rooms department | $ 105,727,372 | $ 108,199,151 | $ 96,837,386 |
Food and beverage department | 34,513,695 | 35,384,530 | 33,273,599 |
Other operating departments | 14,025,626 | 9,262,071 | 8,422,491 |
Total revenue | 154,266,693 | 152,845,752 | 138,533,476 |
Hotel operating expenses | |||
Rooms department | 26,673,727 | 28,300,126 | 25,025,337 |
Food and beverage department | 24,585,923 | 24,357,248 | 23,005,629 |
Other operating departments | 4,405,515 | 2,438,860 | 1,786,197 |
Indirect | 57,612,203 | 57,736,937 | 52,067,947 |
Total hotel operating expenses | 113,277,368 | 112,833,171 | 101,885,110 |
Depreciation and amortization | 16,999,619 | 15,019,071 | 13,591,495 |
Impairment of investment in hotel properties, net | 0 | 0 | 500,000 |
Loss (gain) on disposal of assets | 1,489,892 | 365,319 | (41,435) |
Corporate general and administrative | 6,335,926 | 6,021,065 | 7,268,256 |
Total operating expenses | 138,102,805 | 134,238,626 | 123,203,426 |
NET OPERATING INCOME | 16,163,888 | 18,607,126 | 15,330,050 |
Other income (expense) | |||
Interest expense | (15,727,628) | (17,735,107) | (16,515,827) |
Interest income | 218,656 | 115,785 | 50,461 |
Equity income in joint venture | 475,514 | ||
Loss on early debt extinguishment | (1,178,348) | (1,417,905) | (772,907) |
Unrealized loss on hedging activities | (28,384) | (37,384) | (108,819) |
Gain on sale of assets | 76,233 | ||
Gain on change in control | 6,603,148 | ||
Gain on involuntary conversion of assets | 2,242,876 | 0 | 0 |
Net income (loss) before income taxes | 1,767,293 | (467,485) | 5,061,620 |
Income tax (provision) benefit | (1,737,804) | 1,367,634 | 1,336,033 |
Net income | 29,489 | 900,149 | 6,397,653 |
Less: Net loss (income) attributable to noncontrolling interest | 413,014 | 26,567 | (1,040,987) |
Net income attributable to the Company | 442,503 | 926,716 | 5,356,666 |
Distributions to preferred stockholders | (3,781,639) | (1,144,889) | |
Net income (loss) available to common stockholders | $ (3,339,136) | $ (218,173) | $ 5,356,666 |
Net income/(loss) per share attributable to the common stockholders/operating partner unit | |||
Basic | $ (0.24) | $ (0.01) | $ 0.43 |
Diluted | $ (0.24) | $ (0.01) | $ 0.43 |
Weighted average number of common shares/operating partner units outstanding | |||
Basic | 13,829,100 | 14,896,994 | 12,541,117 |
Diluted | 13,829,100 | 14,896,994 | 12,541,117 |
Sotherly Hotels LP [Member] | |||
REVENUE | |||
Rooms department | $ 105,727,372 | $ 108,199,151 | $ 96,837,386 |
Food and beverage department | 34,513,695 | 35,384,530 | 33,273,599 |
Other operating departments | 14,025,626 | 9,262,071 | 8,422,491 |
Total revenue | 154,266,693 | 152,845,752 | 138,533,476 |
Hotel operating expenses | |||
Rooms department | 26,673,727 | 28,895,371 | 25,025,337 |
Food and beverage department | 24,585,923 | 24,357,248 | 23,005,629 |
Other operating departments | 4,405,515 | 2,438,860 | 1,786,197 |
Indirect | 57,612,203 | 57,141,692 | 52,067,947 |
Total hotel operating expenses | 113,277,368 | 112,833,171 | 101,885,110 |
Depreciation and amortization | 16,999,619 | 15,019,071 | 13,591,495 |
Impairment of investment in hotel properties, net | 500,000 | ||
Loss (gain) on disposal of assets | 1,489,892 | 365,319 | (41,435) |
Corporate general and administrative | 6,335,926 | 6,021,065 | 7,268,256 |
Total operating expenses | 138,102,805 | 134,238,626 | 123,203,426 |
NET OPERATING INCOME | 16,163,888 | 18,607,126 | 15,330,050 |
Other income (expense) | |||
Interest expense | (15,727,628) | (17,735,107) | (16,515,827) |
Interest income | 218,656 | 115,785 | 50,461 |
Equity income in joint venture | 475,514 | ||
Loss on early debt extinguishment | (1,178,348) | (1,417,905) | (772,907) |
Unrealized loss on hedging activities | (28,384) | (37,384) | (108,819) |
Gain on sale of assets | 76,233 | ||
Gain on change in control | 6,603,148 | 6,603,148 | 6,603,148 |
Gain on involuntary conversion of assets | 2,242,876 | ||
Net income (loss) before income taxes | 1,767,293 | (467,485) | 5,061,620 |
Income tax (provision) benefit | (1,737,804) | 1,367,634 | 1,336,033 |
Net income | 29,489 | 900,149 | 6,397,653 |
Distributions to preferred unit holder | (3,781,639) | (1,144,889) | |
Net income (loss) available to operating partnership unit holders | $ (3,752,150) | $ (244,740) | $ 6,397,653 |
Net income/(loss) per share attributable to the common stockholders/operating partner unit | |||
Basic and diluted | $ (0.23) | $ (0.01) | $ 0.43 |
Weighted average number of common shares/operating partner units outstanding | |||
Basic and diluted | 16,224,005 | 16,710,935 | 14,924,410 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) | Total | Series B Preferred Stock [Member] | Series C Preferred Stock [Member] | Preferred Stock [Member] | Preferred Stock [Member]Series B Preferred Stock [Member] | Preferred Stock [Member]Series C Preferred Stock [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Additional Paid-In Capital [Member]Series B Preferred Stock [Member] | Additional Paid-In Capital [Member]Series C Preferred Stock [Member] | Unearned ESOP Shares [Member] | Distributions in Excess of Retained Earnings [Member] | Noncontrolling Interest [Member] |
Balances, beginning at Dec. 31, 2014 | $ 27,509,857 | $ 105,709 | $ 58,659,799 | $ (35,388,313) | $ 4,132,662 | ||||||||
Balances, shares, beginning at Dec. 31, 2014 | 10,570,932 | ||||||||||||
Net income (loss) | 6,397,653 | 5,356,666 | 1,040,987 | ||||||||||
Issuance of unrestricted common stock awards | 194,200 | $ 264 | 193,936 | ||||||||||
Issuance of unrestricted common stock awards, shares | 26,350 | ||||||||||||
Issuance of restricted common stock awards | 71,858 | $ 98 | 71,760 | ||||||||||
Issuance of restricted common stock awards, shares | 9,750 | ||||||||||||
Issuance of common stock from ATM sales | 682,208 | $ 986 | 681,222 | ||||||||||
Issuance of common stock from ATM sales, shares | 98,682 | ||||||||||||
Issuance of common stock from equity offering | 22,568,609 | $ 34,350 | 22,534,259 | ||||||||||
Issuance of common stock from equity offering, shares | 3,435,000 | ||||||||||||
Conversion of Operating Partnership units into shares of common stock | $ 3,500 | 588,162 | (591,662) | ||||||||||
Conversion of Operating Partnership units into shares of common stock, shares | 350,000 | ||||||||||||
Amortization of restricted stock award | 19,920 | 19,920 | |||||||||||
Dividends and distributions declared | (4,585,937) | (3,859,187) | (726,750) | ||||||||||
Balances, ending at Dec. 31, 2015 | 52,858,368 | $ 144,907 | 82,749,058 | (33,890,834) | 3,855,237 | ||||||||
Balances, shares, ending at Dec. 31, 2015 | 14,490,714 | ||||||||||||
Net income (loss) | 900,149 | 926,716 | (26,567) | ||||||||||
Issuance of unrestricted common stock awards | 128,282 | $ 242 | 128,040 | ||||||||||
Issuance of unrestricted common stock awards, shares | 24,250 | ||||||||||||
Issuance of restricted common stock awards | 63,480 | $ 120 | 63,360 | ||||||||||
Issuance of restricted common stock awards, shares | 12,000 | ||||||||||||
Issuance of common stock from ATM sales | $ 37,766,531 | $ 16,100 | $ 37,750,431 | ||||||||||
Issuance of common stock from ATM sales, shares | 1,610,000 | ||||||||||||
Repurchase of common stock | $ (3,164,536) | $ (4,811) | (3,159,725) | ||||||||||
Repurchase of common stock, shares | (481,100) | (481,100) | |||||||||||
Conversion of Operating Partnership units into shares of common stock | $ 4,227 | 843,998 | (848,225) | ||||||||||
Conversion of Operating Partnership units into shares of common stock, shares | 422,687 | ||||||||||||
Amortization of restricted stock award | $ 19,920 | 19,920 | |||||||||||
Preferred stock dividends declared | (1,144,889) | (1,144,889) | |||||||||||
Dividends and distributions declared | (6,088,017) | (5,436,747) | (651,270) | ||||||||||
Balances, ending at Dec. 31, 2016 | 81,339,288 | $ 16,100 | $ 144,685 | 118,395,082 | (39,545,754) | 2,329,175 | |||||||
Balances, shares, ending at Dec. 31, 2016 | 1,610,000 | 14,468,551 | |||||||||||
Net income (loss) | 29,489 | 442,503 | (413,014) | ||||||||||
Issuance of restricted common stock awards | 89,160 | $ 120 | 89,040 | ||||||||||
Issuance of restricted common stock awards, shares | 12,000 | ||||||||||||
Issuance of common stock from ATM sales | $ 30,488,660 | $ 13,000 | $ 30,475,660 | ||||||||||
Issuance of common stock from ATM sales, shares | 1,300,000 | ||||||||||||
Repurchase of common stock | $ (2,731,041) | $ (4,017) | (2,727,024) | ||||||||||
Repurchase of common stock, shares | (401,720) | (401,720) | |||||||||||
Purchase of shares by ESOP | $ (4,874,758) | $ (4,874,758) | |||||||||||
Amortization of ESOP shares | 238,307 | (3,339) | 241,646 | ||||||||||
Amortization of restricted stock award | 19,920 | 19,920 | |||||||||||
Preferred stock dividends declared | (3,781,639) | (3,781,639) | |||||||||||
Dividends and distributions declared | (6,642,356) | (5,880,970) | (761,386) | ||||||||||
Balances, ending at Dec. 31, 2017 | $ 94,175,030 | $ 29,100 | $ 140,788 | $ 146,249,339 | $ (4,633,112) | $ (48,765,860) | $ 1,154,775 | ||||||
Balances, shares, ending at Dec. 31, 2017 | 2,910,000 | 14,078,831 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 29,489 | $ 900,149 | $ 6,397,653 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 16,999,619 | 15,019,071 | 13,591,495 |
Gain on change in control | (6,603,148) | ||
Equity income in joint venture | (475,514) | ||
Impairment of investment in hotel properties | 0 | 0 | 500,000 |
Amortization of deferred financing costs | 776,410 | 1,147,864 | 1,300,032 |
Amortization of mortgage premium | (24,681) | (24,682) | (18,820) |
Gain on involuntary conversion of assets | (2,242,876) | 0 | 0 |
Unrealized loss on derivative instrument | 28,384 | 37,384 | 108,819 |
Loss (gain) on disposal of assets | 1,489,892 | 365,319 | (41,435) |
Gain on sale of assets | (76,233) | ||
Loss on early extinguishment of debt | 1,178,348 | 1,417,905 | 772,907 |
Share / Unit - based compensation | 347,387 | 211,682 | 285,978 |
Changes in assets and liabilities: | |||
Restricted cash | (85,529) | (560,817) | 584,926 |
Accounts receivable | (1,492,119) | (56,573) | (2,021,825) |
Prepaid expenses, inventory and other assets | (2,780,246) | (334,063) | (623,980) |
Deferred income taxes | 1,498,222 | (1,558,966) | (1,780,571) |
Accounts payable and other accrued liabilities | 1,244,731 | (35,188) | (1,001,376) |
Advance deposits | (743,399) | 663,947 | 431,111 |
Accounts receivable - affiliate | (389,851) | 222,377 | (28,878) |
Net cash provided by operating activities | 15,757,548 | 17,415,409 | 11,377,374 |
Cash flows from investing activities: | |||
Acquisitions of hotel properties | (3,986,849) | (25,525,754) | |
Improvements and additions to hotel properties | (23,155,738) | (14,912,677) | (20,136,427) |
Distributions from joint venture | 600,000 | ||
Funding of restricted cash reserves | (4,697,136) | (5,276,518) | (4,973,602) |
Proceeds of restricted cash reserves | 5,727,613 | 7,035,029 | 6,376,459 |
Proceeds from the sale of hotel property | 5,434,856 | ||
Proceeds from insurance conversion | 2,275,666 | 124,609 | |
Proceeds from the sale or disposal of assets | 105,401 | 213,400 | 2,402,113 |
Net cash used in investing activities | (18,296,187) | (12,940,766) | (41,132,602) |
Cash flows from financing activities: | |||
Proceeds of mortgage debt | 40,500,000 | 102,700,000 | 127,000,000 |
Proceeds from mortgage loan receivable | 2,600,711 | ||
Proceed from sale of common stock, net | 23,250,818 | ||
Proceeds from the sale of preferred stock, net | 30,488,660 | 37,766,531 | |
Payments on mortgage loans | (25,990,271) | (89,619,564) | (120,154,764) |
Redemption of unsecured notes | (25,300,000) | (27,600,000) | |
Settlement or repurchase of common stock / units | (3,708,891) | (2,061,407) | |
Payments of deferred financing costs | (837,991) | (1,796,351) | (1,377,882) |
Funding of ESOP stock purchase | (4,874,758) | ||
Dividends and distributions paid | (5,945,401) | (5,851,813) | (4,103,529) |
Preferred dividends paid | (3,781,639) | (339,889) | |
Net cash provided by financing activities | 549,709 | 15,798,218 | 24,614,643 |
Net (decrease) increase in cash and cash equivalents | (1,988,930) | 20,272,861 | (5,140,585) |
Cash and cash equivalents at the beginning of the period | 31,766,775 | 11,493,914 | 16,634,499 |
Cash and cash equivalents at the end of the period | 29,777,845 | 31,766,775 | 11,493,914 |
Supplemental disclosures: | |||
Cash paid during the period for interest | 15,253,059 | 16,881,223 | 15,415,695 |
Cash paid during the period for income taxes | 162,677 | 192,965 | 570,762 |
Non-cash investing and financing activities: | |||
Mortgage debt proceeds receivable and related loan costs | 2,704,415 | ||
Assumption of mortgage loan on Crowne Plaza Hollywood Beach Resort acquisition | 57,000,000 | ||
Assumption of loan amount premium on the Crowne Plaza Hollywood Beach Resort assumed loan | 246,815 | ||
Settlements for repurchase of common stock in accounts payable and accrued liabilities | 125,279 | 1,103,129 | |
Change in amount of deferred financing and deferred offering costs in accounts payable and accrued liabilities | 624,117 | ||
Change in amount of improvements to hotel property in accounts payable and accrued liabilities | 151,499 | 431,858 | 601,895 |
Sotherly Hotels LP [Member] | |||
Cash flows from operating activities: | |||
Net income (loss) | 29,489 | 900,149 | 6,397,653 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 16,999,619 | 15,019,071 | 13,591,495 |
Gain on change in control | (6,603,148) | (6,603,148) | (6,603,148) |
Equity income in joint venture | (475,514) | ||
Impairment of investment in hotel properties | 500,000 | ||
Amortization of deferred financing costs | 776,410 | 1,147,864 | 1,300,032 |
Amortization of mortgage premium | (24,681) | (24,682) | (18,820) |
Gain on involuntary conversion of assets | (2,242,876) | ||
Unrealized loss on derivative instrument | 28,384 | 37,384 | 108,819 |
Loss (gain) on disposal of assets | 1,489,892 | 365,319 | (41,435) |
Gain on sale of assets | (76,233) | ||
Loss on early extinguishment of debt | 1,178,348 | 1,417,905 | 772,907 |
Share / Unit - based compensation | 309,574 | 211,682 | 285,978 |
Changes in assets and liabilities: | |||
Restricted cash | (85,529) | (560,817) | 584,926 |
Accounts receivable | (1,492,119) | (56,573) | (2,021,825) |
Prepaid expenses, inventory and other assets | (2,780,246) | (334,063) | (623,980) |
Deferred income taxes | 1,498,222 | (1,558,966) | (1,780,571) |
Accounts payable and other accrued liabilities | 1,244,731 | (35,188) | (1,001,376) |
Advance deposits | (743,399) | 663,947 | 431,111 |
Accounts receivable - affiliate | (389,851) | 222,377 | (28,878) |
Net cash provided by operating activities | 15,719,735 | 17,415,409 | 11,377,374 |
Cash flows from investing activities: | |||
Acquisitions of hotel properties | (3,986,849) | (25,525,754) | |
Improvements and additions to hotel properties | (23,155,738) | (14,912,677) | (20,136,427) |
Distributions from joint venture | 600,000 | ||
ESOP loan advances | (4,874,758) | ||
ESOP loan payments | 223,789 | ||
Funding of restricted cash reserves | (4,697,136) | (5,276,518) | (4,973,602) |
Proceeds of restricted cash reserves | 5,727,613 | 7,035,029 | 6,376,459 |
Proceeds from the sale of hotel property | 5,434,856 | ||
Proceeds from insurance conversion | 2,275,666 | 124,609 | |
Proceeds from the sale or disposal of assets | 105,401 | 213,400 | 2,402,113 |
Net cash used in investing activities | (22,947,156) | (12,940,766) | (41,132,602) |
Cash flows from financing activities: | |||
Proceeds of mortgage debt | 40,500,000 | 102,700,000 | 127,000,000 |
Proceeds from mortgage loan receivable | 2,600,711 | ||
Proceeds from the sale of common operating units | 23,250,818 | ||
Proceeds from sale of preferred operating units | 30,488,660 | 37,766,531 | |
Payments on mortgage loans | (25,990,271) | (89,619,564) | (120,154,764) |
Redemption of unsecured notes | (25,300,000) | (27,600,000) | |
Settlement or repurchase of common stock / units | (3,708,891) | (2,061,407) | |
Payments of deferred financing costs | (837,991) | (1,796,351) | (1,377,882) |
Dividends and distributions paid | (6,131,377) | (5,851,813) | (4,103,529) |
Preferred dividends paid | (3,781,639) | (339,889) | |
Net cash provided by financing activities | 5,238,491 | 15,798,218 | 24,614,643 |
Net (decrease) increase in cash and cash equivalents | (1,988,930) | 20,272,861 | (5,140,585) |
Cash and cash equivalents at the beginning of the period | 31,766,775 | 11,493,914 | 16,634,499 |
Cash and cash equivalents at the end of the period | 29,777,845 | 31,766,775 | 11,493,914 |
Supplemental disclosures: | |||
Cash paid during the period for interest | 15,253,059 | 16,881,223 | 15,415,695 |
Cash paid during the period for income taxes | 162,677 | 192,965 | 570,762 |
Non-cash investing and financing activities: | |||
Mortgage debt proceeds receivable and related loan costs | 2,704,415 | ||
Assumption of mortgage loan on Crowne Plaza Hollywood Beach Resort acquisition | 57,000,000 | ||
Assumption of loan amount premium on the Crowne Plaza Hollywood Beach Resort assumed loan | 246,815 | ||
Settlements for repurchase of common units in accounts payable and accrued liabilities | 125,279 | 1,103,129 | |
Change in amount of deferred financing and deferred offering costs in accounts payable and accrued liabilities | 624,117 | ||
Change in amount of improvements to hotel property in accounts payable and accrued liabilities | $ 151,499 | $ 431,858 | $ 601,895 |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Partners' Capital - USD ($) | Total | Sotherly Hotels LP [Member] | Sotherly Hotels LP [Member]General Partner [Member] | Sotherly Hotels LP [Member]Limited Partner [Member] | Sotherly Hotels LP [Member]Preferred Units [Member] | Sotherly Hotels LP [Member]Preferred Units [Member]Series B Preferred Units [Member] | Sotherly Hotels LP [Member]Preferred Units [Member]Series C Preferred Units [Member] |
Balances, beginning at Dec. 31, 2014 | $ 27,509,857 | $ 520,791 | $ 26,989,066 | ||||
Balances, units, beginning at Dec. 31, 2014 | 131,218 | 12,990,541 | |||||
Issuance of common partnership units | 23,516,875 | $ 235,237 | $ 23,281,638 | ||||
Issuance of common partnership units, number of units | 35,697 | 3,534,085 | |||||
Amortization of restricted units award | $ 19,920 | 19,920 | $ 149 | $ 19,771 | |||
Partnership units distributions declared | (4,585,937) | (45,859) | (4,540,078) | ||||
Net income (loss) | 6,397,653 | 6,397,653 | 63,977 | 6,333,676 | |||
Balances, ending at Dec. 31, 2015 | 52,858,368 | $ 774,295 | $ 52,084,073 | ||||
Balances, units, ending at Dec. 31, 2015 | 166,915 | 16,524,626 | |||||
Issuance of common partnership units | 191,762 | $ 1,918 | $ 189,844 | ||||
Issuance of common partnership units, number of units | 363 | 35,887 | |||||
Issuance of preferred partnership units | 37,766,531 | $ 37,766,531 | |||||
Issuance of preferred partnership units, number of units | 1,610,000 | ||||||
Repurchased common units | $ (3,164,536) | $ (31,645) | $ (3,132,891) | ||||
Repurchased common units, number of units | (481,100) | (4,811) | (476,289) | ||||
Amortization of restricted units award | 19,920 | $ 19,920 | $ 149 | $ 19,771 | |||
Preferred units distributions declared | (1,144,889) | (1,144,889) | |||||
Partnership units distributions declared | (6,088,017) | (60,881) | (6,027,136) | ||||
Net income (loss) | 900,149 | 900,149 | (2,447) | (242,293) | 1,144,889 | ||
Balances, ending at Dec. 31, 2016 | 81,339,288 | $ 681,389 | $ 42,891,368 | 37,766,531 | |||
Balances, units, ending at Dec. 31, 2016 | 162,467 | 16,084,224 | 1,610,000 | ||||
Issuance of common partnership units | 89,160 | $ 892 | $ 88,268 | ||||
Issuance of common partnership units, number of units | 120 | 11,880 | |||||
Issuance of preferred partnership units | 30,488,660 | $ 30,488,660 | |||||
Issuance of preferred partnership units, number of units | 1,300,000 | ||||||
Repurchased common units | $ (2,731,041) | $ (27,310) | $ (2,703,731) | ||||
Repurchased common units, number of units | (401,720) | (4,017) | (397,703) | ||||
Amortization of restricted units award | 19,920 | $ 19,920 | $ 199 | $ 19,721 | |||
Unit based compensation | 200,494 | 200,494 | |||||
Preferred units distributions declared | (3,781,639) | (3,220,000) | (561,639) | ||||
Partnership units distributions declared | (6,873,876) | (68,740) | (6,805,136) | ||||
Net income (loss) | $ 29,489 | 29,489 | 295 | (3,752,445) | 3,220,000 | 561,639 | |
Balances, ending at Dec. 31, 2017 | $ 98,780,455 | $ 586,725 | $ 29,938,539 | $ 37,766,531 | $ 30,488,660 | ||
Balances, units, ending at Dec. 31, 2017 | 158,570 | 15,698,401 | 2,910,000 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Dec. 31, 2017 | |
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. Currently, the Company is focused on the acquisition, renovation, upbranding and repositioning of upscale to upper-upscale full-service hotels in the southern United States. The Company’s portfolio, as of December 31, 2017, consists of investments in eleven hotel properties, comprising 2,838 rooms and one hotel commercial condominium unit which forms a part of a 400 room condominium-hotel. All of the Company’s hotels, except for The DeSoto, the Georgian Terrace, The Whitehall and the Hyde Resort & Residences, operate under the Hilton, Crowne Plaza, DoubleTree, and Sheraton brands. 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. Substantially all of the Company’s assets are held by, and all of its operations are conducted through, Sotherly Hotels LP, (the “Operating Partnership”). 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, 2017, was approximately 88.8% owned by the Company, and its subsidiaries, lease its hotels to direct and indirect subsidiaries of MHI Hospitality TRS Holding, Inc., MHI Hospitality TRS, LLC and certain of its subsidiaries, (collectively, “MHI TRS”), each of which is a wholly-owned subsidiary of the Operating Partnership. For the years ended December 31, 2017, 2016 and 2015, MHI TRS engaged 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 May 5, 2015, we obtained a $47.0 million mortgage with Bank of America N.A. on the Georgian Terrace in Atlanta, Georgia. The mortgage bears interest at a fixed rate of 4.42% and provides for level payments of principal and interest on a monthly basis under a 30-year amortization schedule. The maturity date is June 1, 2025. We used the proceeds of the mortgage to repay the existing first mortgage and to pay closing costs, and used the balance of the proceeds to partially fund renovations at the Georgian Terrace and for general corporate purposes. During June 2015, the Company sold 98,682 shares of common stock for net proceeds of approximately $0.7 million, which it contributed to the Operating Partnership for an equivalent number of units. On July 1, 2015, the Company sold 3,000,000 shares of common stock, for net proceeds of approximately $19.8 million, which it contributed to the Operating Partnership for an equivalent number of units. On July 7, 2015, we entered into a loan agreement and other loan documents to secure an $18.5 million mortgage with Bank of the Ozarks collateralized by a first mortgage on the DoubleTree by Hilton Jacksonville Riverfront. The $18.5 million mortgage was received in two parts. We received $18.0 million on July 7, 2015 and the remainder of $0.5 million on October 20, 2015. The $0.5 million was included with the additional earn-out provision of $1.5 million, for a total of $2.0 million additional proceeds, as described below. The mortgage term is four years maturing July 7, 2019 and may be extended for one additional period of one year, subject to certain criteria. The mortgage bears a floating interest rate of the 30-day LIBOR plus 3.5%, subject to a floor rate of 4.0%. The mortgage amortizes on a 25-year schedule; and has a prepayment penalty if prepaid during the initial two years. We used the proceeds from the mortgage to repay the existing first mortgage on the DoubleTree by Hilton Jacksonville Riverfront and to pay closing costs, and used the balance of the proceeds to partially fund ongoing renovations at the DoubleTree by Hilton Jacksonville Riverfront and for general corporate purposes. On July 17, 2015, the Company sold 435,000 shares of common stock for net proceeds of approximately $2.8 million, which it contributed to the Operating Partnership for an equivalent number of units. On July 31, 2015, we acquired the remaining 75.0% interest in (i) the entity that owns the DoubleTree Resort by Hilton Hollywood Beach (formerly known as the Crowne Plaza Hollywood Beach Resort), and (ii) the entity that leases the DoubleTree Resort by Hilton Hollywood Beach. As a result, the Operating Partnership now has a 100% indirect ownership interest in the entities that own the DoubleTree Resort by Hilton Hollywood Beach. On September 2, 2015, we closed on the sale of a 0.3 acre parcel of excess land adjacent to our Atlanta, Georgia property for $2.2 million. The parcel was included in the acquisition of the Georgian Terrace in March 2014. We used the proceeds of the sale for general corporate purposes. On September 28, 2015, we entered into a loan agreement to secure a $60.0 million mortgage on the DoubleTree Resort by Hilton Hollywood Beach with Bank of America, N.A. The mortgage term is ten years maturing October 1, 2025, subject to certain criteria. The mortgage bears a fixed interest rate of 4.913%. The mortgage amortizes on a 30-year schedule. We used the proceeds from the mortgage to repay the existing first mortgage on the DoubleTree Resort by Hilton Hollywood Beach and to pay closing costs, and used the balance of the proceeds for general corporate purposes. On October 20, 2015, we secured $2.0 million additional proceeds on the mortgage loan on the DoubleTree by Hilton Jacksonville Riverfront as part of an earn-out pursuant to the terms of the loan agreement. On December 31, 2015, we entered into an amendment to the existing mortgage loan on the DoubleTree by Hilton Laurel which generated additional net proceeds of approximately $2.6 million and received the loan proceeds on January 4, 2016 . On March 21, 2016, we entered into an agreement with the existing lender to extend the maturity of the mortgage on The Whitehall until November 2017. On June 27, 2016, we entered into a promissory note and other loan documents to secure a $35.0 million mortgage on the Hilton Savannah DeSoto with MONY Life Insurance Company. The mortgage term is ten years maturing July 1, 2026, subject to certain criteria. The mortgage bears a fixed interest rate of 4.25%. The mortgage amortizes on a 25-year schedule after a 1-year interest-only period. We used the proceeds to repay the existing first mortgage on the Hilton Savannah DeSoto and to pay closing costs, and used the balance of the proceeds to fund ongoing renovations at the hotel and for general corporate purposes. On June 30, 2016, we entered into a loan agreement and other loan documents, including a guaranty of payment by the Operating Partnership, to secure a $19.0 million mortgage on the Crowne Plaza Tampa Westshore with Fifth Third Bank. The mortgage term has an initial term of three years, and may be extended for two additional periods of one year each, subject to certain conditions. The mortgage bears a floating interest rate of the 30-day LIBOR plus 3.75%, subject to a floor rate of 3.75%. The mortgage amortizes on a 25-year schedule. We used the proceeds to repay the existing first mortgage on the Crowne Plaza Tampa Westshore and to pay closing costs, and used the balance of the proceeds for general corporate purposes. On August 23, 2016, the Company sold 1,610,000 shares of 8.0% Series B Cumulative Redeemable Perpetual Preferred Stock (the “Series B Preferred Stock”), for net proceeds after all expenses of approximately $37.8 million, which it contributed to the Operating Partnership for an equivalent number of preferred partnership units. On September 30, 2016, we redeemed the entire $27.6 million aggregate principal amount of our outstanding 8% senior unsecured notes (the “8% Notes”). On October 12, 2016, we entered into a loan agreement to secure a $20.5 million mortgage on The Whitehall with the International Bank of Commerce. Pursuant to the loan documents, the loan provides initial proceeds of $15.0 million, with an additional $5.5 million available upon the satisfaction of certain conditions, has a term of five years, bears a floating interest rate of the one month LIBOR plus 3.5%, subject to a floor rate of 4.0%, amortizes on an 18-year schedule after a 2-year interest only period, is subject to prepayment fees, and is guaranteed by Sotherly Hotels LP. On November 3, 2016, On November 3, 2016, we entered into a loan agreement to modify and extend the mortgage on the Crowne Plaza Hampton Marina with TowneBank. Pursuant to the amended loan documents, the loan continues to bear a fixed interest rate of 5.00%, has a maturity date of November 1, 2019, and beginning on December 1, 2016 requires monthly principal payments of $15,367 plus interest. On December 1, 2016, we entered into a promissory note and other loan documents to secure a $35.0 million mortgage on the Hilton Wilmington Riverside with MONY Life Insurance Company. Pursuant to the loan documents, the loan: provides initial proceeds of $30.0 million, with an additional $5.0 million available upon the satisfaction of certain conditions. The mortgage term is ten years maturing January 1, 2027, subject to certain criteria. The mortgage bears a fixed interest rate of 4.25%. The mortgage amortizes on a 25-year schedule after a 1-year interest-only period. We used the proceeds to repay the existing first mortgage on the Hilton Wilmington Riverside and to pay closing costs, and will use the balance of the proceeds to fund ongoing renovations at the hotel and for general corporate purposes. On December 2, 2016, the Company’s Board of Directors authorized a stock repurchase program under which the Company may purchase up to $10.0 million of its outstanding common stock, par value $0.01 per share, at prevailing prices on the open market or in privately negotiated transactions, at the discretion of management. For the years ended December 31, 2017 and 2016, the Company repurchased 401,720 and 481,100 shares of common stock, respectively, for approximately $2.7 million and $3.2 million, respectively. The repurchased shares have been returned to the status of authorized but unissued shares of common stock. The Company used available working capital to fund purchases under the stock repurchase program and intends to complete the repurchase program prior to December 31, 2018, unless extended by the Board of Directors. On December 29, 2016, the Company adopted an Employee Stock Ownership Plan (“ESOP”), effective as of January 1, 2016. The Company sponsors and maintains the ESOP and related trust for the benefit of its eligible employees. The ESOP is funded by a loan from the Company, pursuant to which the ESOP may borrow up to $5.0 million to purchase shares of the Company’s common stock. From January 3, 2017 to February 28, 2017 the ESOP purchased 682,500 shares of common stock at an aggregate cost of approximately $4.9 million, which it borrowed from the Company under the loan . Coincident with the execution of the loan from the Company to the ESOP, the Operating Partnership committed to fund a loan to the Company to allow the Company to loan funds to the ESOP, for the purpose as stated above. On January 30, 2017, we closed on the purchase of the commercial condominium unit of the Hyde Resort & Residences, a 400-unit condominium hotel located in the Hollywood, Florida market, for an aggregated price of approximately $4.8 million from 4111 South Ocean Drive, LLC. In connection with the closing of the transaction, we entered into a lease agreement for the 400-space parking garage and meeting rooms associated with the condominium hotel, agreements relating to the operation and management of the hotel condominium association and a condominium unit rental program, and a pre-opening services agreement whereby the seller paid us a fee of approximately $0.8 million for certain pre-opening related preparations. On February 7, 2017, we closed on the sale of the Crowne Plaza Hampton Marina to Marina Hotels, LLC for a price of $5.6 million. On June 1, 2017, we entered into an agreement to purchase the commercial unit of the planned Hyde Beach House Resort & Residences, a condominium hotel under development in Hollywood, Florida, for a price of $5.1 million from 4000 South Ocean Property Owner, LLLP. In connection with the agreement, we also entered into a pre-opening services agreement whereby the seller has agreed to pay us approximately $0.8 million in connection with certain pre-opening activities to be undertaken prior to the closing. We have agreed to purchase inventories at closing consistent with the management and operation of the planned hotel and the related condominium association for an additional amount and have further agreed to enter into a lease agreement for the parking garage and poolside cabanas associated with the planned hotel and to enter into a management agreement relating to the operation and management of the planned hotel’s condominium association. We anticipate that the closing of the transaction and the execution of related agreements will take place in the second quarter of 2019, once construction of the planned hotel has been substantially completed. The closing of the transaction is subject to various closing conditions as described in the purchase agreement. On June 29, 2017, we entered into a promissory note and other loan documents to secure a $35.5 million mortgage on the DoubleTree by Hilton Jacksonville Riverfront with Wells Fargo Bank, N.A. Pursuant to the loan documents, the loan has a maturity date of July 11, 2024, bears a fixed interest rate of 4.88%, amortizes on a 30-year schedule, and is subject to a prepayment premium following a prepayment lockout period. We used a portion of the proceeds to repay the existing first mortgage on the DoubleTree by Hilton Jacksonville Riverfront, to pay closing costs and for general corporate purposes. On October 11, 2017, the Company closed a sale and issuance of 1,200,000 shares of its newly authorized 7.875% Series C Cumulative Redeemable Perpetual Preferred Stock (the “Series C Preferred Stock”), for net proceeds after all estimated expenses of approximately $28.0 million. On October 17, 2017, the Company closed a sale and issuance of an additional 100,000 shares of its Series C Preferred Stock, for net proceeds of approximately $2.5 million, pursuant to the underwriters’ partial exercise of an option granted by the Company to purchase additional shares. On November 15, 2017, t he Operating Partnership redeemed the entire $25.3 million principal amount of the 7% Notes, at a redemption price equal to 101% of the principal amount of the 7% Notes, plus any accrued and unpaid interest to, but not including, the redemption date. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
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 and have been prepared using accounting principles generally accepted in the United States of America (“GAAP”). 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 fair value on acquisition date 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 permanent 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 exceeds 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 and a re-evaluation of future revenues and expenses based on anticipated market conditions, market penetration and costs necessary to achieve such market penetration revealed an excess of current carrying cost over the estimated undiscounted future cash flows and current fair values during the period ending December 31, 2015, resulting in an impairment of approximately $0.5 million, as of December 31, 2015. 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 – Prior to July 31, 2015 we accounted for our investment in the joint venture under the equity method of accounting and were entitled to receive our pro rata share of annual cash flow. We also had 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. On July 31, 2015, we acquired the remaining 75.0% interest in (i) the entity that owns the DoubleTree Resort by Hilton Hollywood Beach, and (ii) the entity that leases the DoubleTree Resort by Hilton Hollywood Beach. As a result, we now have a 100% indirect ownership interest in the entities that own the DoubleTree Resort by Hilton Hollywood Beach and consolidate the financial results of operations within the financial statements from August 1, 2015 through December 31, 2015 and for the years ended December 31, 2017 and 2016. In addition, we recorded a gain on change in control of $6,603,148. The overall enterprise fair value based on underlying acquired assets was used to determine the fair value of the equity interest on the date of acquisition. The value was reduced by a minority interest discount to arrive at the fair value used to calculate the gain on the acquisition. 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 reviews, on a regular basis, the balances on deposit to minimize our potential risk. Restricted Cash – Restricted cash includes real estate tax escrows, insurance escrows and reserves for replacements of furniture, fixtures and equipment pursuant to certain requirements in our various mortgage agreements. Accounts Receivable – Accounts receivable consists primarily of hotel guest, banqueting and credit card 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 net realizable value, 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, 2017 and 2016 were approximately $532,070 and $386,612, respectively. Amortization expense for the years ended December 31, 2017, 2016, and 2015 was $46,209, $52,330 and $53,347, 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 and are reflected in mortgage loans, net on the consolidated balance sheets. 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. Our amortization of deferred offering costs occurs when one of our common equity offerings 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. During the twelve months ended December 31, 2017 and 2016, the Company wrote off approximately $0.5 million and $0 of deferred offering costs, respectively. As of December 31, 2017, we have no capitalized deferred offering costs subject to further amortization. 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 are using an interest rate cap which acts as a cash flow hedge and is not designated as a hedge. We value our interest-rate cap 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 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 assets and liabilities measured at fair value and the basis for that measurement (our interest rate cap is the only asset or liability measured at fair value on a recurring basis and there were no non-recurring asset and liability fair value measurements as of December 31, 2017 and 2016, respectively): Level 1 Level 2 Level 3 December 31, 2016 Interest Rate Cap (1) $ — $ 33,597 $ — Mortgage loans (2) $ — $ (281,840,780 ) $ — Unsecured notes (3) $ (26,241,160 ) $ — $ — December 31, 2017 Interest Rate Cap (1) $ — $ 5,213 $ — Mortgage loans (2) $ — $ (292,368,370 ) $ — Unsecured notes (3) $ — $ — $ — (1) Interest rate cap, which caps a 1-month LIBOR rate at 2.5%. (2) Mortgage loans are reflected at carrying value on our Consolidated Balance Sheets as of December 31, 2017 and December 31, 2016. (3) Unsecured notes are recorded at historical cost on our Consolidated Balance Sheet as of December 31, 2016. 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, rentals from restaurant tenants, rooftop leases, fees earned on the management of the condominium rental program at the Hyde Resort & Residences and insurance proceeds of business interruption coverage. Revenues are reported net of occupancy and other taxes collected from customers and remitted to governmental authorities. Refer to “New Accounting Pronouncements - ASU No. 2014-09, ,” below for further discussion of revenue recognition. 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 consolidated statement of operations pursuant to the terms of each lease. Lease revenue was $1,780,525, $1,785,934 and $1,776,518, for the years ended December 31, 2017, 2016, and 2015, respectively. A schedule of minimum future lease payments receivable for the following twelve-month periods is as follows: For the year ending: December 31, 2018 $ 1,112,282 December 31, 2019 868,289 December 31, 2020 832,695 December 31, 2021 725,244 December 31, 2022 584,901 December 31, 2023 and thereafter 2,500,972 Total $ 6,624,383 Variable Interest Entities – The Operating Partnership is a variable interest entity. The Company’s only significant asset is its investment in the Operating Partnership, and consequently, substantially all of the Company’s assets and liabilities represent those assets and liabilities of the Operating Partnership and its subsidiaries. All of the Company’s debt is an obligation of the Operating Partnership and its subsidiaries. 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. At December 31, 2017, deferred tax assets total approximately $5.5 million, of which approximately $4.9 million relate to net operating losses of our TRS Lessee. A valuation allowance is required for deferred tax assets if, based on all available evidence, it is “more-likely-than-not” that all or a portion of the deferred tax asset will or will not be realized due to the inability to generate sufficient taxable income in certain financial statement periods. The “more-likely-than-not” analysis means the likelihood of realization is greater than 50%, that we will or will not be able to fully utilize the deferred tax assets against future taxable income. The net amount of deferred tax assets that are recorded on the financial statements must reflect the tax benefits that are expected to be realized using these criteria. We perform this analysis by evaluating future hotel revenues and expenses accounting for certain non-recurring costs and expenses during the current and prior two fiscal years as well as anticipated changes in the lease rental payments from the TRS Lessee to subsidiaries of the Operating Partnership. We have determined that it is more-likely-than-not that we will be able to fully utilize our deferred tax assets for future tax consequences, therefore no valuation allowance is required. As of December 31, 2017, 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, 2017, the tax years that remain subject to examination by the major tax jurisdictions to which the Company is subject generally include 2010 through 2016. In addition, as of December 31, 2017, the tax years that remain subject to examination by the major tax jurisdictions to which MHI TRS is subject, because of open NOL carryforwards, generally include 2009 through 2017. 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 and directors for up to 350,000 and 750,000 shares of common stock, respectively. The Company believes that stock awards 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. All of the 255,938 shares issued to certain of our executives and employees have vested. 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 163,350 shares, including 77,600 non-restricted shares to certain executives, directors and employees, and 85,750 restricted shares issued to its independent directors and one employee. All awards have vested except for 25,000 shares issued to one employee, which will vest over the next 5 years and 15,000 shares issued to the Company’s independent directors in February 2018, which will vest by December 31, 2018. 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, 2017, 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, 2017, 2016, and 2015 was $109,080, $211,682 and $285,978, respectively. The 2004 Plan was terminated in April 2013. Additionally, the Company sponsors and maintains an ESOP and related trust for the benefit of its eligible employees. We reflect unearned ESOP shares as a reduction of stockholders’ equity. Dividends on unearned ESOP shares, when paid, are considered compensation expense. The Company recognizes compensation expense equal to the fair value of the Company’s ESOP shares during the periods in which they are committed to be released. To the extent that the fair value of the Company’s ESOP shares differs from the cost of such shares, the differential is recognized as additional paid in capital. Because the ESOP is internally leveraged through a loan from the Company to the ESOP, the loan receivable by the Company from the ESOP is not reported as an asset nor is the debt of the ESOP shown as a liability in the consolidated financial statements. On February 15, 2017, the NCGC Committee approved the suspension of the Company’s Long Term Stock Bonus Program (the “LTSBP”), a stock-based compensation program approved by the board on April 16, 2013 and implemented in conjunction with and aligned with the duration of the Company’s 2013 Plan. Advertising – Advertising costs were $357,379, $452,665 and $280,625 for the years ended December 31, 2017, 2016, and 2015, respectively and are expensed as incurred. Business Interruption Coverage – Insurance recoveries for business interruption were recognized during the year ended December 31, 2017, for approximately $0.3 million. The events that resulted in these recoveries during the year ending December 31, 2017 were caused by Hurricanes Matthew and Irma at our properties in Houston, Texas and Tampa, Florida, respectively. The insurance proceeds were reflected in the statement of operations in other operating departments revenues. Involuntary Conversion of Assets – We record gains or losses on involuntary conversions of assets due to recovered insurance proceeds to the extent the undepreciated cost of a nonmonetary asset differs from the amount of monetary proceeds received. During the years ending December 31, 2017, 2016 and 2015, we recognized approximately $2.2 million, $0 and $0, respectively, for gain on involuntary conversion of assets, which is reflected in the consolidated statements of operations. 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 – Certain reclassifications in the amount of approximately $0.6 million and approximately $0.8 million for the twelve-month periods ending December 31, 2016 and 2015, respectively, from rooms expense to indirect expense balances on the consolidated statements of operations have been made to conform to the current period presentation. We have also reclassified approximately $0.3 million for the twelve-month period ending December 31, 2016 on the statement of cash flows into line item, loss on early extinguishments of debt, and out of line item, payments of deferred financing costs, in order to conform to the current period presentation. New Accounting Pronouncements – In August 2017, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2017-12, , which improves the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements and simplifies the application of hedge accounting. This standard will be effective for the first annual period beginning after December 15, 2018, including interim periods within those periods. Early adoption is permitted. We adopted this standard on January 1, 2018 and aside from minor presentation changes in its disclosure on derivative and hedging activities it will not have a material effect on our consolidated financial statements. In February 2017, the FASB issued ASU 2017-05, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20). Nonmonetary Transactions In January 2017, the FASB issued ASU 2017-01, Business Combinations – Clarifying the Definition of a Business (Topic 805). In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers – Narrow-Scope Improvements and Practical Expedients (Topic 606) Revenue from Contracts with Customers (Topic 606) In April 2016, the FASB issued ASU No. 2016-10 , Revenue from Contracts with Customers – Identifying Performance Obligations and Licensing (Topic 606) Revenue from Contracts with Customers (Topic 606) In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) |
Acquisition of Hotel Properties
Acquisition of Hotel Properties | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisition of Hotel Properties | 3. Acquisition of Hotel Properties Hyde Resort & Residences. On January 30, 2017, we acquired the hotel commercial condominium unit of the Hyde Resort & Residences condominium hotel, for an aggregate price including inventory and other assets of approximately $4.8 million. The allocation of the purchase price based on fair values was as follows: The allocation of the purchase price based on their fair values was as follows: Hyde Resort & Residences Land and land improvements $ 500 Buildings and improvements 4,309,500 Furniture, fixtures and equipment 72,616 Investment in hotel properties 4,382,616 Accrued liabilities and other costs (866,142 ) Prepaid expenses, inventory and other assets 470,375 Net cash $ 3,986,849 The results of operations of the Hyde Resort & Residences are included in our consolidated financial statements from the date of acquisition. The total revenue and net loss related to the acquisition for the period January 30, 2017 to December 31, 2017 are approximately $4.0 million and $0.7 million, respectively. There is no pro forma financial information, since this is a new operation without prior historical information. |
Investment in Hotel Properties,
Investment in Hotel Properties, Net and Investment in Hotel Properties Held for Sale, Net | 12 Months Ended |
Dec. 31, 2017 | |
Real Estate [Abstract] | |
Investment in Hotel Properties, Net and Investment in Hotel Properties Held for Sale, Net | 4. Investment in Hotel Properties, Net and Investment in Hotel Properties Held for Sale, Net Investment in hotel properties as of December 31, 2017 and 2016 consisted of the following: December 31, 2017 December 31, 2016 Land and land improvements $ 59,504,625 $ 57,851,380 Buildings and improvements 348,532,577 336,996,876 Furniture, fixtures and equipment 48,467,956 43,458,781 456,505,158 438,307,037 Less: accumulated depreciation and impairment (98,705,646 ) (89,713,125 ) Investment in Hotel Properties, Net $ 357,799,512 $ 348,593,912 Investment in hotel properties held for sale, net as of December 31, 2017 and 2016 consisted of the following: December 31, 2017 December 31, 2016 Land and land improvements $ $ 1,097,096 Buildings and improvements — 6,242,504 Furniture, fixtures and equipment — 2,289,008 — 9,628,608 Less: accumulated depreciation and impairment — (4,295,608) Investment in Hotel Properties Held for Sale, Net $ — $ 5,333,000 Our review of possible impairment during the years ended December 31, 2017 and 2016, resulted in no impairment on our investment in hotel properties, respectively. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | 5. Debt Mortgage Loans, Net. As of December 31, 2017 and 2016, we had approximately $297.3 million and approximately $282.7 million of outstanding mortgage debt, respectively. The following table sets forth our mortgage debt obligations on our hotels. Balance Outstanding as of December 31, December 31, Prepayment Maturity Amortization Interest Property 2017 2016 Penalties Date Provisions Rate Crowne Plaza Hampton Marina (1) $ - $ 2,584,633 None 11/1/2019 3 years 5.00% Crowne Plaza Tampa Westshore (2) 15,284,200 15,561,400 None 6/30/2019 25 years LIBOR plus 3.75 % The DeSoto (3) 34,645,929 30,000,000 Yes 7/1/2026 25 years 4.25% DoubleTree by Hilton Jacksonville Riverfront (4) 35,294,741 19,291,716 Yes 7/11/2024 30 years 4.88% DoubleTree by Hilton Laurel (5) 9,132,558 9,329,005 Yes 8/5/2021 25 years 5.25% DoubleTree by Hilton Philadelphia Airport (6) 30,432,260 31,261,991 None 4/1/2019 25 years LIBOR plus 3.00 % DoubleTree by Hilton Raleigh Brownstone University (7) 14,503,925 14,773,885 n/a 8/1/2018 30 years 4.78% DoubleTree Resort by Hilton Hollywood Beach (8) 58,023,567 58,935,818 n/a 10/1/2025 30 years 4.913% Georgian Terrace (9) 45,032,662 45,826,038 n/a 6/1/2025 30 years 4.42% Hilton Wilmington Riverside (10) 30,000,000 30,000,000 Yes 1/1/2027 25 years 4.25% Sheraton Louisville Riverside (11) 11,701,930 11,977,557 Yes 12/1/2026 25 years 4.27% The Whitehall (12) 15,000,000 15,000,000 Yes 10/12/2021 18 years LIBOR plus 3.50 % Total Mortgage Principal Balance $ 299,051,772 $ 284,542,043 Deferred financing costs, net (1,923,928 ) (2,049,409 ) Unamortized premium on loan 190,972 215,655 Total Mortgage Loans, Net $ 297,318,816 $ 282,708,289 (1) The note was extended and modified in November 2016 for 3 years until November 1, 2019 and the Operating Partnership was required to make monthly principal payments of $15,367. The note rate was changed to a fixed rate of 5.00%, effective June 27, 2014. As of February 7, 2017, the note is no longer outstanding. (2) The note provides initial proceeds of $15.7 million, with an additional $3.3 million available upon the satisfaction of certain conditions; bears a floating interest rate of the 30-day LIBOR plus 3.75%, subject to a floor rate of 3.75%; the note provides that the mortgage can be extended for two additional periods of one year each, subject to certain conditions. (3) The note provides initial proceeds of $30.0 million, with an additional $5.0 million available upon the satisfaction of certain conditions, namely, the completion of a renovation project; amortizes on a 25-year schedule after a 1-year interest-only period; and is subject to a pre-payment penalty except for any pre-payments made within 120 days of the maturity date. (4) The note may not be prepaid until August 2019, after which it is subject to a pre-payment penalty until March 2024. Prepayment can be made without penalty thereafter. (5) The note is subject to a pre-payment penalty except for any pre-payments made either between April 2017 and August 2017, or from April 2021 through maturity of the note. (6) The note bears a minimum interest rate of 3.50%. (7) With limited exception, the note may not be prepaid until two months before maturity. (8) With limited exception, the note may not be prepaid until June 2025. (9) With limited exception, the note may not be prepaid until February 2025. (10) The note provides initial proceeds of $30.0 million, with an additional $5.0 million available upon the satisfaction of certain conditions namely, the completion of a renovation project; amortizes on a 25-year schedule after a 1-year interest-only period; and is subject to a pre-payment penalty except for any pre-payments made within 120 days of the maturity date. (11) The note bears a fixed interest rate of 4.27% for the first 5 years of the loan, with an option for the lender to reset the interest rate after 5 years. (12) The note was refinanced in October 2016, provides initial proceeds of $15.0 million, with an additional $5.5 million available upon the satisfaction of certain conditions; bears a floating interest rate of the 1-month LIBOR plus 3.5%, subject to a floor rate of 4.0% and is subject to prepayment penalties subject to a declining scale from 3.0% penalty on or before the first anniversary date, a 2.0% penalty during the second anniversary year and a 1.0% penalty after the third anniversary date. 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, 2017. Total future mortgage debt maturities, without respect to any extension of loan maturity, as of December 31, 2017 were as follows: For the year ending: December 31, 2018 $ 22,039,201 December 31, 2019 51,290,912 December 31, 2020 7,232,596 December 31, 2021 28,919,110 December 31, 2022 7,018,848 December 31, 2023 and thereafter 182,551,105 Total future maturities $ 299,051,772 7.0% Unsecured Notes. On November 21, 2014, the Operating Partnership issued its 7% Notes in the aggregate amount of $25.3 million. The indenture required quarterly payments of interest and was to mature on November 15, 2019. The 7% Notes were redeemed on November 15, 2017 at 101% of face value. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 6. Commitments and Contingencies Ground, Building and Submerged Land Leases – We lease 2,086 square feet of commercial space next to the Hilton Savannah DeSoto for use as an office, retail or conference space, or for any related or ancillary purposes for the hotel and/or atrium space. In December 2007, we signed an amendment to the lease to include rights to the outdoor esplanade adjacent to the leased commercial space. The areas are leased under a six-year operating lease, which expired October 31, 2006 and has been renewed for the third of three optional five-year renewal periods expiring October 31, 2011, October 31, 2016 and October 31, 2021, respectively. Rent expense for this operating lease for the years ended December 31, 2017, 2016, and 2015 was $72,984, $72,984 and $65,054, respectively. We lease, as landlord, the entire fourteenth floor of the Savannah hotel property to The Chatham Club, Inc. under a ninety-nine year lease expiring July 31, 2086. This lease was assumed upon the purchase of the building under the terms and conditions agreed to by the previous owner of the property. No rental income is recognized under the terms of this lease as the original lump sum rent payment of $990 was received by the previous owner and not prorated over the life of the lease. We lease a parking lot adjacent to the DoubleTree by Hilton Raleigh Brownstone-University in Raleigh, North Carolina. The land is leased under a second amendment, dated April 28, 1998, to a ground lease originally dated May 25, 1966. The original lease is a 50-year operating lease, which expired August 31, 2016. We exercised a renewal option for the first of three additional ten-year periods expiring August 31, 2026, August 31, 2036, and August 31, 2046, respectively. We hold an exclusive and irrevocable option to purchase the leased land at fair market value at the end of the original lease term, subject to the payment of an annual fee of $9,000, and other conditions. For the years ended December 31, 2017, 2016, and 2015, rent expense was $116,791, $95,482 and $95,482, respectively We lease land adjacent to the Crowne Plaza Tampa Westshore for use as parking under a five-year renewable agreement with the Florida Department of Transportation that commenced in July 2009 and expires in July 2019. The agreement requires annual payments of $2,432, plus tax, and may be renewed for an additional five years. Rent expense for each of the years ended December 31, 2017, 2016, and 2015 was $2,602, respectively. We lease 5,216 square feet of commercial office space in Williamsburg, Virginia under an agreement, as amended, that commenced September 1, 2009 and expires August 31, 2018. Rent expense for each of the years ended December 31, 2017, 2016, and 2015 was $90,208, $91,003 and $83,651, respectively. We lease the parking garage adjacent to the Hyde Resort & Residences, along with meeting and office space, in Hollywood Beach, Florida. The parking garage and meeting space is leased under a 20-year operating lease requiring monthly payments of $20,000, which expires in February 2037. Rent expense for the year ending December 31, 2017 totaled $220,000. We also lease certain furniture and equipment under financing arrangements expiring between February 2018 and October 2019. A schedule of minimum future lease payments for the following twelve-month periods is as follows: For the year ending: December 31, 2018 $ 568,112 December 31, 2019 466,465 December 31, 2020 351,464 December 31, 2021 351,464 December 31, 2022 351,464 December 31, 2023 and thereafter 3,920,165 Total $ 6,009,134 Employment Agreements — The Company has entered into various employment contracts with employees that could result in obligations to us in the event of a change in control or termination without cause. Management Agreements – As of December 31, 2017, each of our wholly-owned hotels and the rental program and condominium association of the Hyde Resort & Residences operated under a management agreement with Chesapeake Hospitality (see Note 9). The management agreements expire between January 1, 2020 and January 30, 2022, and may be extended for up to two additional periods of five years each subject to the approval of both parties. Each of the individual hotel management agreements may be terminated earlier than the stated term upon the sale of the hotel covered by the respective management agreement, in which case we may incur early termination fees. Franchise Agreements – As of December 31, 2017, most of our hotels operate under franchise licenses from national hotel companies. Under the franchise agreements, we are required to pay a franchise fee generally between 2.5% and 5.0% of room revenues, plus additional fees for marketing, central reservation systems, and other franchisor programs and services that amount to between 2.5% and 6.0% of room revenues from the hotels. The franchise agreements currently expire between March 2018 and October 2030. On August 7, 2014, we voluntarily terminated the franchise agreement with Holiday Hospitality Franchising, LLC (IHG) for the Crowne Plaza Jacksonville Riverfront effective September 1, 2015 and recognized a termination fee of $351,800. The property has been rebranded as the DoubleTree by Hilton Jacksonville Riverfront. On April 12, 2016 we allowed the franchise agreement on the Crowne Plaza Houston Downtown to expire. The property has been rebranded as The Whitehall. On July 31, 2017, we allowed the franchise agreement on the Hilton Savannah DeSoto to expire. The property has been rebranded as The DeSoto and operates as an independent hotel. Each of our franchise agreements provides for early termination fees in the event the agreement is terminated before the stated term. Restricted Cash Reserves – Each month, we are required to escrow with the lenders on the Hilton Wilmington Riverside, The DeSoto, the DoubleTree by Hilton Raleigh Brownstone-University, the DoubleTree by Hilton Jacksonville Riverside, the DoubleTree Resort by Hilton Hollywood Beach, the Sheraton Louisville Riverside and the Georgian Terrace an amount equal to 1 / 12 of the annual real estate taxes due for the properties. We are also required by several of our lenders to establish individual property improvement funds to cover the cost of replacing capital assets at our properties. Each month, those contributions equal 4.0% of gross revenues for The DeSoto, the Hilton Wilmington Riverside, the DoubleTree by Hilton Jacksonville Riverside, the DoubleTree Resort by Hilton Hollywood Beach, DoubleTree by Hilton Raleigh Brownstone–University, the Whitehall, Crowne Plaza Hampton Marina and the Georgian Terrace and equal 4.0% of room revenues for the DoubleTree by Hilton Philadelphia Airport. ESOP Loan Commitment – The Company’s board of directors approved the ESOP on November 29, 2016, which was adopted by the Company in December 2016 and effective January 1, 2016. The ESOP is a non-contributory defined contribution plan covering all employees of the Company. The ESOP is a leveraged ESOP, meaning the contributed funds are loaned to the ESOP from the Company. The Company entered into a loan agreement with the ESOP on December 29, 2016, pursuant to which the ESOP may borrow up to $5.0 million to purchase shares of the Company’s common stock on the open market. Under the loan agreement, the aggregate principal amount outstanding at any time may not exceed $5.0 million and the ESOP may borrow additional funds up to that limit in the future, until December 29, 2036. Shares purchased by the ESOP are held in a suspense account for allocation among participants as contributions are made to the ESOP by the Company. The share allocations will be accounted for at fair value at the date of allocation. As of December 31, 2017, the ESOP had purchased 682,500 shares of the Company’s common stock in the open market for approximately $4.9 million, which the ESOP borrowed from the Company pursuant to the loan agreement. A total of 33,832 shares with a fair value of $221,438 were allocated or committed to be released from the suspense account and recognized as compensation cost during the twelve months ended December 31, 2017. The remaining 648,668 unallocated shares have an approximate fair value of $4.2 million, as of December 31, 2017. At December 31, 2017, the ESOP held a total of 9,473 allocated shares, 24,359 committed-to-be-released shares and 648,668 suspense shares. Dividends on allocated shares are paid to the participants of the ESOP, while dividends on unallocated shares are used to pay down the ESOP loan from the Operating Partnership. Litigation – We are not involved in any material litigation, nor, to our knowledge, is any material litigation threatened against us. We have settled, during the period covered by this report, all significant claims made during the same period. We are involved in routine litigation arising out of the ordinary course of business, all of which we expect to be covered by insurance and we believe it is not reasonably possible such matters will have a material impact on our financial condition or results of operations. |
Preferred Stock and Units
Preferred Stock and Units | 12 Months Ended |
Dec. 31, 2017 | |
Preferred Stock And Units [Abstract] | |
Preferred Stock and Units | 7. Preferred Stock and Units Preferred Stock - The Company is authorized to issue up to 11,000,000 shares of preferred stock. As of December 31, 2017 and 2016, there were each 1,610,000 shares of the Series B Preferred Stock issued and outstanding. As of December 31, 2017 and 2016, there were 1,300,000 and 0 shares, respectively, of the Series C Preferred Stock issued and outstanding. In October 2017, the Company issued 1,300,000 shares of Series C Preferred Stock, for net proceeds after all estimated expenses of approximately $30.5 million. The Company contributed the net proceeds from the offering to its Operating Partnership for an equivalent number of Series C Preferred Units. Holders of the Company’s Series C Preferred 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 Company pays cumulative cash distributions on the Series C Preferred Stock at a rate of 7.875% per annum of the $25.00 liquidation preference per share. The Series C Preferred Stock is not redeemable by the holders, has no maturity date and is not convertible into any other security of the Company or its affiliates. On August 23, 2016, the Company issued 1,610,000 shares, $0.01 par value per share, of its Series B Preferred Stock for net proceeds after all expenses of approximately $37.8 million, which it contributed to the Operating Partnership for an equivalent number of preferred partnership units. Holders of the Company’s Series B Preferred 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 Company pays cumulative cash distributions on the Series B Preferred Stock at a rate of 8.00% per annum of the $25.00 liquidation preference per share. The Series B Preferred Stock is not redeemable by the holders, has no maturity date and is not convertible into any other security of the Company or its affiliates. Preferred Units – The Company is the holder of the Operating Partnership’s preferred partnership units, and is entitled to receive distributions when authorized by our board of directors out of assets legally available for the payment of distributions. In October 2017, the Operating Partnership issued 1,300,000 units of 7.875% Series C Preferred Units, for net proceeds after all estimated expenses of approximately $30.5 million. The Operating Partnership used the net proceeds to redeem in full the Operating Partnership’s 7% Notes and for working capital. On August 23, 2016, the Operating Partnership issued 1,610,000 0.01 8 37.8 The Operating Partnership pays cumulative cash dividends on the Series B Preferred Units and Series C Preferred Units at a rate of 8.00% and 7.875%, respectively per annum for each of the $25.00 liquidation preferences per unit. The Operating Partnership declared and paid per Series B Preferred Units and Series C Preferred Units as follows: The following table presents the quarterly distributions by the Operating Partnership declared and payable per Preferred B unit for the years ended December 31, 2017, 2016, and 2015: Quarter Ended 2015 2016 2017 March 31, $ — $ — $ 0.50 June 30, $ — $ — $ 0.50 September 30, $ — $ .2111 (1) $ 0.50 December 31, $ — $ 0.50 $ 0.50 (1) For the short period from August 23, 2016 to September 30, 2016. The following table presents the quarterly distributions by the Operating Partnership declared and payable per Preferred C unit for the years ended December 31, 2017, 2016, and 2015: Quarter Ended 2015 2016 2017 March 31, $ — $ — $ — June 30, $ — $ — $ — September 30, $ — $ — $ — December 31, $ — $ — $ .4430 (2) (1) (2) For the short period from October 11, 2017 to December 31, 2017. |
Common Stock and Units
Common Stock and Units | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Common Stock and Units | 8. Common Stock and Units 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. On December 2, 2016, the Company’s Board of Directors authorized a stock repurchase program under which the Company may purchase up to $10.0 million of its outstanding common stock, par value $0.01 per share, at prevailing prices on the open market or in privately negotiated transactions, at the discretion of management. The Company has and expects to continue to use available working capital to fund purchases under the stock repurchase program and intends to complete the repurchase program prior to December 31, 2017, unless extended by the Board of Directors. For the years ended December 31, 2017 and 2016 the Company repurchased 401,720 and 481,100 shares of common stock, respectively, for approximately $2.7 million and $3.2 million, respectively, and the repurchased shares have been returned to the status of authorized but unissued shares of common stock. The following is a list of issuances during the years ended December 31, 2017, 2016, and 2015 of the Company’s common stock: On February 15, 2017, the Company was issued 12,000 units in the Operating Partnership and awarded 12,000 shares of restricted stock to its independent directors. On February 2, 2016, the Company was issued 36,250 units in the Operating Partnership and awarded an aggregate of 22,000 shares of unrestricted stock to certain executives and employees as well as 12,000 shares of restricted stock and 2,250 shares of unrestricted stock to certain of its independent directors. On February 1, 2016, two holders of units in the Operating Partnership redeemed 422,687 units for an equivalent number of shares of the Company’s common stock. On September 16, 2015, one holder of units in the Operating Partnership redeemed a total of 200,000 units for an equivalent number of shares of the Company’s common stock. On July 17, 2015, the Company sold 435,000 shares of common stock for net proceeds of approximately $2.8 million, which it contributed to the Operating Partnership for an equivalent number of units. On July 1, 2015, the Company sold 3,000,000 shares of common stock, for net proceeds of approximately $19.8 million, which it contributed to the Operating Partnership for an equivalent number of units. During June On May 1, 2015, one holder of units in the On April 1, 2015, one holder of On January 29, 2015, the Company was issued 36,100 units in the Operating Partnership and awarded an aggregate of 26,350 shares of unrestricted stock to certain As of December 31, 2017 and 2016, the Company had 14,078,831 and 14,468,551 shares of common stock outstanding, respectively. Operating Partnership Units – Holders of Operating Partnership units, other than the Company as general partner, have certain redemption rights, which enable them to cause the Operating Partnership to redeem their units in exchange for shares of the Company’s common stock on a one-for-one basis or, at the option of the Company, cash per unit equal to the average of the market price of the Company’s common stock for the 10 trading days immediately preceding the notice date of such redemption. The number of shares issuable upon exercise of the redemption rights will be adjusted upon the occurrence of stock splits, mergers, consolidations or similar pro-rata share transactions, which otherwise would have the effect of diluting the ownership interests of the limited partners or the stockholders of the Company. The following is a list of issuance and redemption events, since January 2015, of general and limited partnership units in the Operating Partnership in addition to the issuances of units in the Operating Partnership to the Company and redemptions for the Company’s common stock described above: For the years ended December 31, 2017 and 2016, the Operating Partnership for approximately $2.7 million and $3.2 million, respectively, . As of December 31, 2017 and 2016, the total number of Operating Partnership units outstanding was 15,856,971 and 16,246,691, respectively. As of December 31, 2017 and 2016, the total number of outstanding units in the Operating Partnership not owned by the Company was 1,778,140 and 1,778,140, respectively, with a fair market value of approximately $11.5 million and approximately $12.1 million, respectively, based on the price per share of the common stock on such respective dates. Common Unit Distributions – The following table presents the quarterly distributions by the Operating Partnership declared and payable per common unit for the years ended December 31, 2017, 2016, and 2015: Quarter Ended 2015 2016 2017 March 31, $ 0.070 $ 0.085 $ 0.100 June 30, $ 0.075 $ 0.090 $ 0.105 September 30, $ 0.080 $ 0.095 $ 0.110 December 31, $ 0.080 $ 0.095 $ 0.110 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 9. Related Party Transactions Chesapeake Hospitality. As of December 31, 2017, the members of Chesapeake Hospitality (a company that is majority-owned and controlled by the Company’s chief executive officer and two former members of its Board of Directors) owned 1,481,833 shares, approximately 10.5%, of the Company’s outstanding common stock as well as 652,326 Operating Partnership units. The following is a summary of the transactions between Chesapeake Hospitality and us: Accounts Receivable – At December 31, 2017 and 2016, we were due $113,669 and $133,711, respectively, from Chesapeake Hospitality. Management Agreements – Each of the hotels and the hotel condominium unit that we wholly-owned at December 31, 2017 and 2016, are operated by Chesapeake Hospitality under various management agreements. On December 15, 2014, we entered into a new master agreement and a series of individual hotel management agreements that became effective on January 1, 2015. 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 Whitehall and the Georgian Terrace remained at 2.00% through 2015, increased 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 $4,044,059, $3,828,896 and $3,371,668 for the years ended December 31, 2017, 2016, and 2015, respectively. In addition, incentive management fees of $126,918, $36,466 and $79,555 were accrued for the years ended December 31, 2017, 2016, and 2015, respectively. Employee Medical Benefits – We purchase employee medical benefits through Maryland Hospitality, Inc. (d/b/a MHI Health), an affiliate of Chesapeake Hospitality for 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 $4,801,599, $4,606,967 and $4,541,546 for the years ended December 31, 2017, 2016, and 2015, respectively. DoubleTree Resort by Hilton Hollywood Beach. As of December 31, 2017, w e own 100% of the DoubleTree Resort by Hilton Hollywood Beach, which is no longer considered a related party and has a new management agreement as of July 31, 2015. However , through July 31, 2015 we owned a 25.0% indirect interest in (i) the entity that owns the DoubleTree Resort by Hilton Hollywood Beach 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 DoubleTree Resort by Hilton Hollywood Beach and us: Management Agreement – DoubleTree Resort by Hilton Hollywood Beach was operated by Chesapeake Hospitality under a management agreement that expired 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 $401,954, for the period ended July 31, 2015. Asset Management Fee – Also, under an asset management agreement that terminated on July 31, 2015, MHI Hospitality TRS II, LLC, an indirect subsidiary of the Company, received a fee of 1.50% of total revenue which is due on a quarterly basis for services rendered. Asset management fees for the period ended July 31, 2015, were $200,976. Sotherly Foundation – During 2015, the Company loaned $180,000 to the Sotherly Foundation, a non-profit organization to benefit wounded warriors. As of December 31, 2017 and 2016, the balance of the loan was $40,000 and $80,000, respectively. Other Related Parties – 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 manager. Compensation for the years ended December 31, 2017, 2016 and 2015 totaled $304,737, $291,508 and $272,022, respectively, for the three individuals. On February 1, 2016, one current member of our Board of Directors redeemed 322,687 units for an equivalent number of shares of the Company’s common stock, and one previous member of our Board of Directors redeemed 100,000 units for an equivalent number of shares of the Company’s common stock, pursuant to the terms of the partnership agreement. On September 16, 2015, one current member of our Board of Directors redeemed 200,000 units for an equivalent number of shares of the Company’s common stock. On April 1, 2015, one previous member of our Board of Directors redeemed 100,000 units for an equivalent number of shares of the Company’s common stock. During the years ending December 31, 2017, 2016 and 2015, the Company reimbursed $178,345, $123,866 and $138,025, respectively, to a partnership controlled by the Chief Executive Officer for business-related air travel pursuant to the Company’s travel reimbursement policy. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017, 2016, and 2015 were $67,273, $63,944 and $40,768, respectively. The Company adopted an Employee Stock Ownership Plan (“ESOP”) in December 2016, effective January 1, 2016. The ESOP is a non-contributory defined contribution plan covering all employees of the Company. The Company sponsors and maintains the ESOP and related trust for the benefit of its eligible employees. The ESOP is a leveraged ESOP, meaning funds are loaned to the ESOP from the Company. The Company entered into a loan agreement with the ESOP on December 29, 2016, pursuant to which the ESOP may borrow up to $5.0 million to purchase shares of the Company’s common stock on the open market, which serve as collateral for the loan. Between January 3, 2017 and February 28, 2017, the Company’s ESOP purchased 682,500 shares of the Company’s common stock of an aggregate cost of $4.9 million. Shares purchased by the ESOP are held in a suspense account for allocation among participants. The share allocations are accounted for at fair value on the date of allocation as follows: December 31, 2017 December 31, 2016 Number of Shares Fair Value Number of Shares Fair Value Allocated shares 9,473 $ 64,321 - $ — Committed-to-be released shares 24,359 157,117 - — Total allocated and committed-to-be-released 33,832 $ 221,438 - $ — Unallocated shares 648,668 4,183,908 - — Total ESOP shares 682,500 $ 4,405,346 - $ — |
Unconsolidated Joint Venture
Unconsolidated Joint Venture | 12 Months Ended |
Dec. 31, 2017 | |
Unconsolidated Joint Venture [Member] | |
Schedule Of Equity Method Investments [Line Items] | |
Unconsolidated Joint Venture | 11. Unconsolidated Joint Venture As of December 31, 2017 and 2016, we owned 100% of the DoubleTree Resort by Hilton Hollywood Beach. However, through July 31, 2015 we owned only a 25.0% indirect interest in (i) the entity that owns the DoubleTree Resort by Hilton Hollywood Beach and (ii) the entity that leases the hotel and has engaged Chesapeake Hospitality to operate the hotel under a management contract. Carlyle owned a 75.0% indirect controlling interest in these entities through July 31, 2015. The joint venture purchased the property on August 8, 2007 and began operations on September 18, 2007. Summarized financial information for this investment through July 31, 2015, which is accounted for under the equity method, is as follows: Seven Months Ended July 31, 2015 Revenue Rooms department $ 10,605,941 Food and beverage department 1,911,950 Other operating departments 880,564 Total revenue 13,398,455 Expenses Hotel operating expenses Rooms department 2,062,515 Food and beverage department 1,442,139 Other operating departments 388,087 Indirect 4,774,322 Total hotel operating expenses 8,667,063 Depreciation and amortization 1,060,339 General and administrative 252,565 Total operating expenses 9,979,967 Operating income 3,418,488 Interest expense (1,516,433 ) Net income $ 1,902,055 |
Indirect Hotel Operating Expens
Indirect Hotel Operating Expenses | 12 Months Ended |
Dec. 31, 2017 | |
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: 2017 2016 2015 Sales and marketing $ 13,843,578 $ 13,537,887 $ 11,259,332 General and administrative 12,949,596 12,135,835 11,327,182 Repairs and maintenance 6,828,963 7,314,178 6,903,226 Utilities 5,820,589 6,429,686 6,115,356 Property taxes 5,729,464 5,983,280 5,110,659 Management fees, including incentive 4,170,977 3,865,362 3,490,586 Franchise fees 3,877,231 4,091,729 4,016,083 Insurance 2,446,269 2,594,783 2,305,966 Information and telecommunications 1,647,728 1,679,603 1,454,219 Other 297,808 104,594 85,338 Total indirect hotel operating expenses $ 57,612,203 $ 57,736,937 $ 52,067,947 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017, 2016, and 2015 are as follows: Year Ended Year Ended Year Ended December 31, 2017 December 31, 2016 December 31, 2015 Current: Federal $ — $ — $ — State 239,582 191,332 444,538 239,582 191,332 444,538 Deferred: Federal 1,661,153 (1,294,408 ) (1,510,726 ) State (162,931 ) (264,558 ) (269,845 ) 1,498,222 (1,558,966 ) (1,780,571 ) $ 1,737,804 $ (1,367,634 ) $ (1,336,033 ) 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, 2017 December 31, 2016 December 31, 2015 Statutory federal income tax provision (benefit) $ 600,880 $ (158,859 ) $ 1,705,610 Effect of non-taxable REIT income (loss) (1,621,526 ) (1,135,549 ) (2,866,950 ) Effect of change in federal income tax rate on net deferred tax assets 2,681,800 — — State income tax provision (benefit) 76,650 (73,226 ) (174,693 ) $ 1,737,804 $ (1,367,634 ) $ (1,336,033 ) As of December 31, 2017 and 2016, we had a net deferred tax asset of approximately $5.5 million and $6.9 million, respectively, of which, approximately $4.9 million and $6.0 million, respectively, are due to accumulated net operating losses of our TRS Lessee. These loss carryforwards will begin to expire in 2028 if not utilized. As of December 31, 2017 and 2016, the remainder of the deferred tax asset is attributable to year-to-year timing differences of approximately $0.6 million for accrued, but not deductible, employee performance awards, vacation and sick pay, bad debt allowance and depreciation. At the end of the fiscal year, there was a one-time loss effect resulting from a change in the federal income tax rate, due to the TCJA, on the net deferred tax assets which resulted in lowering deferred tax assets in the amount of approximately $2.7 million. We record a valuation allowance to reduce deferred tax assets to an amount that we believe is more likely than not to be realized. Because of expected future taxable income of our TRS Lessee, we have not recorded a valuation allowance to reduce our net deferred tax asset as of December 31, 2017. We regularly evaluate the likelihood that our TRS Lessee will be able to realize its deferred tax assets and the continuing need for a valuation allowance. At December 31, 2017, we determined, based on all available positive and negative evidence, that it is more-likely-than-not that future taxable income will be available during the carryforward periods to absorb all of the consolidated federal and state net operating loss carryforward of our TRS Lessee. A number of factors played a critical role in this determination, including: • a demonstrated track record of past profitability and utilization of past NOL carryforwards, • reasonable forecasts of future taxable income, and • anticipated changes in the lease rental payments from the TRS Lessee to subsidiaries of the Operating Partnership. At December 31, 2017, we determined, based on all available positive and negative evidence, that it is more-likely-than-not that future taxable income will be available during the carryforward periods to absorb all of the consolidated federal and state net operating loss carryforward. |
Income (Loss) Per Share and Per
Income (Loss) Per Share and Per Unit | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Income (Loss) Per Share and Per Unit | 14. Income (Loss) per Share and per Unit Income (Loss) Per Share . The limited partners’ outstanding limited partnership units in the Operating Partnership (which may be redeemed for common stock upon notice from the limited 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 (loss). The shares of the Series B Preferred Stock and Series C Preferred Stock are not convertible into or exchangeable for any other property or securities of the Company, except upon the occurrence of a change of control and have been excluded from the diluted earnings per share calculation as there would be no impact on the current controlling stockholders. The 648,668 non-committed, unearned ESOP shares are treated as reducing the number of issued and outstanding common shares and similarly reducing the weighted average number of common shares outstanding. The effect of allocated and committed to be released shares during the year ended December 31, 2017, have not been included in the weighted average diluted earnings per share calculation, since there would be an anti-dilutive effect from the dilution by these shares, although the amount of compensation for allocated shares is reflected in net income (loss) available to common stockholders for basic computation. There are no ESOP units, therefore there is no dilution on the calculation of earnings per unit. The computation of basic and diluted net income (loss) per share is presented below. Year Ended Year Ended Year Ended December 31, 2017 December 31, 2016 December 31, 2015 Numerator Net income (loss) available to common stockholders for basic and diluted computation $ (3,339,136 ) $ (218,173 ) $ 5,356,666 Denominator Weighted average number of common shares outstanding 14,443,674 14,896,994 12,541,117 Weighted average number of Unearned ESOP Shares (614,574 ) - - Total weighted average number of common shares outstanding for basic and diluted computation 13,829,100 14,896,994 12,541,117 Basic and diluted net income (loss) per share $ (0.24 ) $ (0.01 ) $ 0.43 Income (Loss) Per Unit . The computation of basic and diluted income (loss) per unit is presented below. Year Ended Year Ended Year Ended December 31, 2017 December 31, 2016 December 31, 2015 Numerator Net income (loss) available to common unitholders for basic computation $ (3,752,150 ) $ (244,740 ) $ 6,397,653 Denominator Weighted average number of units outstanding 16,224,005 16,710,935 14,924,410 Basic and diluted net income (loss) per unit $ (0.23 ) $ (0.01 ) $ 0.43 |
Quarterly Operating Results - U
Quarterly Operating Results - Unaudited | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Operating Results - Unaudited | 15. Quarterly Operating Results - Unaudited Quarters Ended 2017 March 31 June 30 September 30 December 31 Total revenue $ 38,694,886 $ 40,642,632 $ 36,769,471 $ 38,159,704 Total operating expenses 32,989,182 35,178,717 34,595,193 35,339,712 Net operating income 5,705,704 5,463,915 2,174,278 2,819,992 Net income (loss) 2,886,032 1,135,719 (936,000 ) (3,056,262 ) Net income (loss) attributable to common shareholders 1,851,090 296,850 (1,550,555 ) (3,936,522 ) Earnings (loss) per share attributable to common shareholders– basic and diluted $ 0.13 $ 0.02 $ (0.11 ) $ (0.29 ) Net income (loss) available to operating partnership unitholders 2,100,958 310,795 (1,741,000 ) (4,422,903 ) Earnings (loss) per unit attributable to operating partnership unitholders– basic and diluted $ 0.13 $ 0.02 $ (0.11 ) $ (0.27 ) Quarters Ended 2016 March 31 June 30 September 30 December 31 Total revenue $ 37,810,144 $ 41,824,954 $ 37,275,312 $ 35,935,342 Total operating expenses 33,025,990 34,645,809 33,539,913 33,026,914 Net operating income 4,784,154 7,179,145 3,735,399 2,908,428 Net income(loss) 545,874 1,977,550 (1,549,191 ) (74,084 ) Net income (loss) attributable to common shareholders 483,095 1,761,106 (1,716,234 ) (746,140 ) Earnings (loss) per share attributable to common shareholders– basic and diluted $ 0.03 $ 0.12 $ (0.11 ) $ (0.05 ) Net income (loss) available to operating partnership unitholders 545,874 1,977,550 (1,889,080 ) (879,084 ) Earnings (loss) per unit attributable to operating partnership unitholders– basic and diluted $ 0.03 $ 0.12 $ (0.11 ) $ (0.05 ) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. Subsequent Events On January 11, 2018, we paid a quarterly dividend (distribution) of $0.11 per common share (and unit) to those stockholders (and unitholders of the Operating Partnership) of record on December 15, 2017. On January 30, 2018, we authorized payment of a quarterly dividend (distribution) of $0.115 per common share (and unit) to the stockholders (and unitholders of the Operating Partnership) of record as of March 15, 2018. The dividend (distribution) is to be paid on April 11, 2018. On January 30, 2018, we authorized payment of a quarterly dividend of $0.50 per Series B Preferred Share (and unit) to the preferred stockholders (and unitholders of the Operating Partnership) of record as of March 29, 2018. The dividend is to be paid on April 16, 2018. On January 30, 2018, we authorized payment of a quarterly dividend of $0.4922 per Series C Preferred Share (and unit) to the preferred stockholders (and unitholders of the Operating Partnership) of record as of March 29, 2018. The dividend is to be paid on April 16, 2018. On February 1, 2018, we received the additional $5.0 million on the Hilton Wilmington Riverside mortgage loan after meeting certain requirements, per the mortgage documents. On February 12, 2018, the Company and the Operating Partnership closed on a sale and issuance by the Operating Partnership of an aggregate $25.0 million of the 7.25% senior unsecured notes due 2021, unconditionally guaranteed by the Company, for net proceeds after all estimated expenses of approximately $23.3 million. On February 26, 2018, we entered into a First Amendment to Loan Agreement, Amended and Restated Promissory Note, and other related documents with International Bank of Commerce to amend the terms of the mortgage loan on The Whitehall hotel located in Houston, Texas. Pursuant to the amended loan documents, the maturity date is extended until February 26, 2023, the loan amortizes on a 25-year schedule with payments of principal and interest beginning immediately, and an initial principal balance of $15.0 million. On March 1, 2018, we entered into a loan agreement, a first promissory note (“Note A”) in the amount of $50.0 million, a second promissory note (“Note B”) in the amount of $7.0 million, and other loan documents, including a guarantee by the Operating Partnership, to secure an aggregate $57.0 million mortgage on the Hyatt Centric Arlington hotel with Fifth Third Bank. Pursuant to the mortgage loan documents, Note A has a term of 3 years, with two 1-year extension options, each of which subject to certain criteria; bears a floating interest rate of one-month LIBOR plus 3.00%; and amortizes on a 25-year schedule. Pursuant to the mortgage loan documents, Note B has a term of 1-year, with two 1-year extension options, each of which subject to certain criteria; bears a floating interest rate of three-month LIBOR plus 5.00%. On March 1, 2018, we acquired the 318-room Hyatt Centric Arlington hotel located in Arlington, Virginia for an aggregate purchase price of $79.7 million including seller credits, subject to a $57.0 million mortgage. Transaction costs associated with the transaction were approximately $0.1 million for the year ended December 31, 2017. Due to the timing and nature of the transaction, we are continuing to evaluate the adjustments that are necessary to reflect the acquired assets and assumed liabilities to estimated fair value. As a result, the acquired assets and assumed liabilities, fair value adjustments, and supplemental pro forma information that is required will be disclosed in subsequent filings. |
Schedule III - Real Estate and
Schedule III - Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 (in thousands) Costs Capitalized Life on Initial Costs Subsequent to Acquisition Gross Amount At End of Year Accumulated Which Building & Building & Building & Depreciation Date of Date Depreciation Description Encumbrances Land Improvements Land Improvements Land Improvements Total & Impairment Construction Acquired is Computed Crowne Plaza Tampa Westshore – Tampa, Florida $ 58,023 $ 4,153 $ 9,670 $ 320 $ 22,289 $ 4,473 $ 31,959 $ 36,432 $ (8,701 ) 1973 2007 3-39 years The DeSoto – Savannah, Georgia 34,646 600 13,562 527 17,334 1,127 30,896 32,023 (9,166 ) 1968 2004 3-39 years DoubleTree by Hilton Jacksonville Riverfront – Jacksonville, Florida 15,284 7,090 14,604 111 7,124 7,201 21,728 28,929 (6,714 ) 1970 2005 3-39 years DoubleTree by Hilton Laurel – Laurel, Maryland 35,295 900 9,443 175 5,746 1,075 15,189 16,264 (4,431 ) 1985 2004 3-39 years DoubleTree by Hilton Philadelphia Airport – Philadelphia, Pennsylvania 9,133 2100 22,031 377 5,725 2,477 27,756 30,233 (9,205 ) 1972 2004 3-39 years DoubleTree by Hilton Raleigh Brownstone – University – Raleigh, North Carolina 30,432 815 7,416 211 6,176 1,026 13,592 14,618 (5,349 ) 1971 2004 3-39 years DoubleTree Resort by Hilton Hollywood Beach - Hollywood Beach, Florida 14,504 22,865 67,660 394 2,870 23,259 70,530 93,789 (4,335 ) 1972 2015 3-39 years Georgian Terrace – Atlanta, Georgia 45,033 10,128 45,386 (1,309 ) 5,555 8,819 50,941 59,760 (5,267 ) 1911 2014 3-39 years Hilton Wilmington Riverside – Wilmington, North Carolina 30,000 785 16,829 500 15,775 1,285 32,604 33,889 (13,043 ) 1970 2004 3-39 years Sheraton Louisville Riverside – Jeffersonville, Indiana 11,702 782 6,891 274 14,613 1,056 21,504 22,560 (5,696 ) 1972 2006 3-39 years The Whitehall – Houston, Texas 15,000 7,374 22,185 106 5,359 7,480 27,544 35,024 (3,103 ) 1963 2013 3-39 years The Hyde Resort - 226 4,290 - - 226 4,290 4,516 (101 ) 2016 2017 3-39 years $ 299,052 $ 57,818 $ 239,967 $ 1,686 $ 108,566 $ 59,504 $ 348,533 $ 408,037 $ (75,111 ) (1) RECONCILIATION OF REAL ESTATE AND ACCUMULATED DEPRECIATION RECONCILIATION OF REAL ESTATE Balance at December 31, 2015 $ 393,630 Acquisitions — Improvements 9,473 Disposal of Assets (914 ) Balance at December 31, 2016 $ 402,189 Acquisitions 4,516 Improvements 13,713 Disposal of Assets (12,381 ) Balance at December 31, 2017 $ 408,037 RECONCILIATION OF ACCUMULATED DEPRECIATION Balance at December 31, 2015 $ 62,041 Current Expense 7,018 Impairment — Disposal of Assets (553 ) Balance at December 31, 2016 $ 68,506 Current Expense 9,933 Impairment — Disposal of Assets (3,328 ) Balance at December 31, 2017 $ 75,111 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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 and have been prepared using accounting principles generally accepted in the United States of America (“GAAP”). 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 fair value on acquisition date 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 permanent 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 exceeds 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 and a re-evaluation of future revenues and expenses based on anticipated market conditions, market penetration and costs necessary to achieve such market penetration revealed an excess of current carrying cost over the estimated undiscounted future cash flows and current fair values during the period ending December 31, 2015, resulting in an impairment of approximately $0.5 million, as of December 31, 2015. |
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 – Prior to July 31, 2015 we accounted for our investment in the joint venture under the equity method of accounting and were entitled to receive our pro rata share of annual cash flow. We also had 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. On July 31, 2015, we acquired the remaining 75.0% interest in (i) the entity that owns the DoubleTree Resort by Hilton Hollywood Beach, and (ii) the entity that leases the DoubleTree Resort by Hilton Hollywood Beach. As a result, we now have a 100% indirect ownership interest in the entities that own the DoubleTree Resort by Hilton Hollywood Beach and consolidate the financial results of operations within the financial statements from August 1, 2015 through December 31, 2015 and for the years ended December 31, 2017 and 2016. In addition, we recorded a gain on change in control of $6,603,148. The overall enterprise fair value based on underlying acquired assets was used to determine the fair value of the equity interest on the date of acquisition. The value was reduced by a minority interest discount to arrive at the fair value used to calculate the gain on the acquisition. |
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 reviews, on a regular basis, the balances on deposit to minimize our potential risk. |
Restricted Cash | Restricted Cash – Restricted cash includes real estate tax escrows, insurance escrows and reserves for replacements of furniture, fixtures and equipment pursuant to certain requirements in our various mortgage agreements. |
Accounts Receivable | Accounts Receivable – Accounts receivable consists primarily of hotel guest, banqueting and credit card 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 net realizable value, 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, 2017 and 2016 were approximately $532,070 and $386,612, respectively. Amortization expense for the years ended December 31, 2017, 2016, and 2015 was $46,209, $52,330 and $53,347, 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 and are reflected in mortgage loans, net on the consolidated balance sheets. 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. Our amortization of deferred offering costs occurs when one of our common equity offerings 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. During the twelve months ended December 31, 2017 and 2016, the Company wrote off approximately $0.5 million and $0 of deferred offering costs, respectively. As of December 31, 2017, we have no capitalized deferred offering costs subject to further amortization. |
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 are using an interest rate cap which acts as a cash flow hedge and is not designated as a hedge. We value our interest-rate cap 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 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 assets and liabilities measured at fair value and the basis for that measurement (our interest rate cap is the only asset or liability measured at fair value on a recurring basis and there were no non-recurring asset and liability fair value measurements as of December 31, 2017 and 2016, respectively): Level 1 Level 2 Level 3 December 31, 2016 Interest Rate Cap (1) $ — $ 33,597 $ — Mortgage loans (2) $ — $ (281,840,780 ) $ — Unsecured notes (3) $ (26,241,160 ) $ — $ — December 31, 2017 Interest Rate Cap (1) $ — $ 5,213 $ — Mortgage loans (2) $ — $ (292,368,370 ) $ — Unsecured notes (3) $ — $ — $ — (1) Interest rate cap, which caps a 1-month LIBOR rate at 2.5%. (2) Mortgage loans are reflected at carrying value on our Consolidated Balance Sheets as of December 31, 2017 and December 31, 2016. (3) Unsecured notes are recorded at historical cost on our Consolidated Balance Sheet as of December 31, 2016. |
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, rentals from restaurant tenants, rooftop leases, fees earned on the management of the condominium rental program at the Hyde Resort & Residences and insurance proceeds of business interruption coverage. Revenues are reported net of occupancy and other taxes collected from customers and remitted to governmental authorities. Refer to “New Accounting Pronouncements - ASU No. 2014-09, ,” below for further discussion of revenue recognition. |
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 consolidated statement of operations pursuant to the terms of each lease. Lease revenue was $ 1,780,525, $1,785,934 and $1,776,518, for the years ended December 31, 2017, 2016, and 2015, respectively. A schedule of minimum future lease payments receivable for the following twelve-month periods is as follows: For the year ending: December 31, 2018 $ 1,112,282 December 31, 2019 868,289 December 31, 2020 832,695 December 31, 2021 725,244 December 31, 2022 584,901 December 31, 2023 and thereafter 2,500,972 Total $ 6,624,383 |
Variable Interest Entities | Variable Interest Entities – The Operating Partnership is a variable interest entity. The Company’s only significant asset is its investment in the Operating Partnership, and consequently, substantially all of the Company’s assets and liabilities represent those assets and liabilities of the Operating Partnership and its subsidiaries. All of the Company’s debt is an obligation of the Operating Partnership and its subsidiaries. |
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. At December 31, 2017, deferred tax assets total approximately $5.5 million, of which approximately $4.9 million relate to net operating losses of our TRS Lessee. A valuation allowance is required for deferred tax assets if, based on all available evidence, it is “more-likely-than-not” that all or a portion of the deferred tax asset will or will not be realized due to the inability to generate sufficient taxable income in certain financial statement periods. The “more-likely-than-not” analysis means the likelihood of realization is greater than 50%, that we will or will not be able to fully utilize the deferred tax assets against future taxable income. The net amount of deferred tax assets that are recorded on the financial statements must reflect the tax benefits that are expected to be realized using these criteria. We perform this analysis by evaluating future hotel revenues and expenses accounting for certain non-recurring costs and expenses during the current and prior two fiscal years as well as anticipated changes in the lease rental payments from the TRS Lessee to subsidiaries of the Operating Partnership. We have determined that it is more-likely-than-not that we will be able to fully utilize our deferred tax assets for future tax consequences, therefore no valuation allowance is required. As of December 31, 2017, 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, 2017, the tax years that remain subject to examination by the major tax jurisdictions to which the Company is subject generally include 2010 through 2016. In addition, as of December 31, 2017, the tax years that remain subject to examination by the major tax jurisdictions to which MHI TRS is subject, because of open NOL carryforwards, generally include 2009 through 2017. 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 and directors for up to 350,000 and 750,000 shares of common stock, respectively. The Company believes that stock awards 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. All of the 255,938 shares issued to certain of our executives and employees have vested. 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 163,350 shares, including 77,600 non-restricted shares to certain executives, directors and employees, and 85,750 restricted shares issued to its independent directors and one employee. All awards have vested except for 25,000 shares issued to one employee, which will vest over the next 5 years and 15,000 shares issued to the Company’s independent directors in February 2018, which will vest by December 31, 2018. 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, 2017, 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, 2017, 2016, and 2015 was $109,080, $211,682 and $285,978, respectively. The 2004 Plan was terminated in April 2013. Additionally, the Company sponsors and maintains an ESOP and related trust for the benefit of its eligible employees. We reflect unearned ESOP shares as a reduction of stockholders’ equity. Dividends on unearned ESOP shares, when paid, are considered compensation expense. The Company recognizes compensation expense equal to the fair value of the Company’s ESOP shares during the periods in which they are committed to be released. To the extent that the fair value of the Company’s ESOP shares differs from the cost of such shares, the differential is recognized as additional paid in capital. Because the ESOP is internally leveraged through a loan from the Company to the ESOP, the loan receivable by the Company from the ESOP is not reported as an asset nor is the debt of the ESOP shown as a liability in the consolidated financial statements. On February 15, 2017, the NCGC Committee approved the suspension of the Company’s Long Term Stock Bonus Program (the “LTSBP”), a stock-based compensation program approved by the board on April 16, 2013 and implemented in conjunction with and aligned with the duration of the Company’s 2013 Plan. |
Advertising | Advertising – Advertising costs were $ 357,379, $452,665 and $280,625 for the years ended December 31, 2017, 2016, and 2015, respectively and are expensed as incurred. |
Business Interruption Coverage | Business Interruption Coverage – Insurance recoveries for business interruption were recognized during the year ended December 31, 2017, for approximately $ 0.3 million. The events that resulted in these recoveries during the year ending December 31, 2017 were caused by Hurricanes Matthew and Irma at our properties in Houston, Texas and Tampa, Florida, respectively. The insurance proceeds were reflected in the statement of operations in other operating departments revenues. |
Involuntary Conversion of Assets | Involuntary Conversion of Assets – We record gains or losses on involuntary conversions of assets due to recovered insurance proceeds to the extent the undepreciated cost of a nonmonetary asset differs from the amount of monetary proceeds received. During the years ending December 31, 2017, 2016 and 2015, we recognized approximately $ 2.2 million, $0 and $0, respectively, for gain on involuntary conversion of assets, which is reflected in the consolidated statements of operations. |
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 | Reclassifications – Certain reclassifications in the amount of approximately $0.6 million and approximately $0.8 million for the twelve-month periods ending December 31, 2016 and 2015, respectively, from rooms expense to indirect expense balances on the consolidated statements of operations have been made to conform to the current period presentation. We have also reclassified approximately $0.3 million for the twelve-month period ending December 31, 2016 on the statement of cash flows into line item, loss on early extinguishments of debt, and out of line item, payments of deferred financing costs, in order to conform to the current period presentation. |
New Accounting Pronouncements | New Accounting Pronouncements – In August 2017, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2017-12, , which improves the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements and simplifies the application of hedge accounting. This standard will be effective for the first annual period beginning after December 15, 2018, including interim periods within those periods. Early adoption is permitted. We adopted this standard on January 1, 2018 and aside from minor presentation changes in its disclosure on derivative and hedging activities it will not have a material effect on our consolidated financial statements. In February 2017, the FASB issued ASU 2017-05, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20). Nonmonetary Transactions In January 2017, the FASB issued ASU 2017-01, Business Combinations – Clarifying the Definition of a Business (Topic 805). In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers – Narrow-Scope Improvements and Practical Expedients (Topic 606) Revenue from Contracts with Customers (Topic 606) In April 2016, the FASB issued ASU No. 2016-10 , Revenue from Contracts with Customers – Identifying Performance Obligations and Licensing (Topic 606) Revenue from Contracts with Customers (Topic 606) In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Recurring Assets and Liabilities Measured at Fair Value | The following table represents our assets and liabilities measured at fair value and the basis for that measurement (our interest rate cap is the only asset or liability measured at fair value on a recurring basis and there were no non-recurring asset and liability fair value measurements as of December 31, 2017 and 2016, respectively): Level 1 Level 2 Level 3 December 31, 2016 Interest Rate Cap (1) $ — $ 33,597 $ — Mortgage loans (2) $ — $ (281,840,780 ) $ — Unsecured notes (3) $ (26,241,160 ) $ — $ — December 31, 2017 Interest Rate Cap (1) $ — $ 5,213 $ — Mortgage loans (2) $ — $ (292,368,370 ) $ — Unsecured notes (3) $ — $ — $ — (1) Interest rate cap, which caps a 1-month LIBOR rate at 2.5%. (2) Mortgage loans are reflected at carrying value on our Consolidated Balance Sheets as of December 31, 2017 and December 31, 2016. (3) Unsecured notes are recorded at historical cost on our Consolidated Balance Sheet as of December 31, 2016. |
Schedule of Minimum Future Lease Payments Receivable | A schedule of minimum future lease payments receivable for the following twelve-month periods is as follows: For the year ending: December 31, 2018 $ 1,112,282 December 31, 2019 868,289 December 31, 2020 832,695 December 31, 2021 725,244 December 31, 2022 584,901 December 31, 2023 and thereafter 2,500,972 Total $ 6,624,383 |
Acquisition of Hotel Properti27
Acquisition of Hotel Properties (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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: Hyde Resort & Residences Land and land improvements $ 500 Buildings and improvements 4,309,500 Furniture, fixtures and equipment 72,616 Investment in hotel properties 4,382,616 Accrued liabilities and other costs (866,142 ) Prepaid expenses, inventory and other assets 470,375 Net cash $ 3,986,849 |
Investment in Hotel Propertie28
Investment in Hotel Properties, Net and Investment in Hotel Properties Held for Sale, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Real Estate [Abstract] | |
Schedule of Investment in Hotel Properties, Net | Investment in hotel properties as of December 31, 2017 and 2016 consisted of the following: December 31, 2017 December 31, 2016 Land and land improvements $ 59,504,625 $ 57,851,380 Buildings and improvements 348,532,577 336,996,876 Furniture, fixtures and equipment 48,467,956 43,458,781 456,505,158 438,307,037 Less: accumulated depreciation and impairment (98,705,646 ) (89,713,125 ) Investment in Hotel Properties, Net $ 357,799,512 $ 348,593,912 |
Schedule of Investment in Hotel Properties Held for Sale, Net | Investment in hotel properties held for sale, net as of December 31, 2017 and 2016 consisted of the following: December 31, 2017 December 31, 2016 Land and land improvements $ $ 1,097,096 Buildings and improvements — 6,242,504 Furniture, fixtures and equipment — 2,289,008 — 9,628,608 Less: accumulated depreciation and impairment — (4,295,608) Investment in Hotel Properties Held for Sale, Net $ — $ 5,333,000 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 December 31, December 31, Prepayment Maturity Amortization Interest Property 2017 2016 Penalties Date Provisions Rate Crowne Plaza Hampton Marina (1) $ - $ 2,584,633 None 11/1/2019 3 years 5.00% Crowne Plaza Tampa Westshore (2) 15,284,200 15,561,400 None 6/30/2019 25 years LIBOR plus 3.75 % The DeSoto (3) 34,645,929 30,000,000 Yes 7/1/2026 25 years 4.25% DoubleTree by Hilton Jacksonville Riverfront (4) 35,294,741 19,291,716 Yes 7/11/2024 30 years 4.88% DoubleTree by Hilton Laurel (5) 9,132,558 9,329,005 Yes 8/5/2021 25 years 5.25% DoubleTree by Hilton Philadelphia Airport (6) 30,432,260 31,261,991 None 4/1/2019 25 years LIBOR plus 3.00 % DoubleTree by Hilton Raleigh Brownstone University (7) 14,503,925 14,773,885 n/a 8/1/2018 30 years 4.78% DoubleTree Resort by Hilton Hollywood Beach (8) 58,023,567 58,935,818 n/a 10/1/2025 30 years 4.913% Georgian Terrace (9) 45,032,662 45,826,038 n/a 6/1/2025 30 years 4.42% Hilton Wilmington Riverside (10) 30,000,000 30,000,000 Yes 1/1/2027 25 years 4.25% Sheraton Louisville Riverside (11) 11,701,930 11,977,557 Yes 12/1/2026 25 years 4.27% The Whitehall (12) 15,000,000 15,000,000 Yes 10/12/2021 18 years LIBOR plus 3.50 % Total Mortgage Principal Balance $ 299,051,772 $ 284,542,043 Deferred financing costs, net (1,923,928 ) (2,049,409 ) Unamortized premium on loan 190,972 215,655 Total Mortgage Loans, Net $ 297,318,816 $ 282,708,289 (1) The note was extended and modified in November 2016 for 3 years until November 1, 2019 and the Operating Partnership was required to make monthly principal payments of $15,367. The note rate was changed to a fixed rate of 5.00%, effective June 27, 2014. As of February 7, 2017, the note is no longer outstanding. (2) The note provides initial proceeds of $15.7 million, with an additional $3.3 million available upon the satisfaction of certain conditions; bears a floating interest rate of the 30-day LIBOR plus 3.75%, subject to a floor rate of 3.75%; the note provides that the mortgage can be extended for two additional periods of one year each, subject to certain conditions. (3) The note provides initial proceeds of $30.0 million, with an additional $5.0 million available upon the satisfaction of certain conditions, namely, the completion of a renovation project; amortizes on a 25-year schedule after a 1-year interest-only period; and is subject to a pre-payment penalty except for any pre-payments made within 120 days of the maturity date. (4) The note may not be prepaid until August 2019, after which it is subject to a pre-payment penalty until March 2024. Prepayment can be made without penalty thereafter. (5) The note is subject to a pre-payment penalty except for any pre-payments made either between April 2017 and August 2017, or from April 2021 through maturity of the note. (6) The note bears a minimum interest rate of 3.50%. (7) With limited exception, the note may not be prepaid until two months before maturity. (8) With limited exception, the note may not be prepaid until June 2025. (9) With limited exception, the note may not be prepaid until February 2025. (10) The note provides initial proceeds of $30.0 million, with an additional $5.0 million available upon the satisfaction of certain conditions namely, the completion of a renovation project; amortizes on a 25-year schedule after a 1-year interest-only period; and is subject to a pre-payment penalty except for any pre-payments made within 120 days of the maturity date. (11) The note bears a fixed interest rate of 4.27% for the first 5 years of the loan, with an option for the lender to reset the interest rate after 5 years. (12) The note was refinanced in October 2016, provides initial proceeds of $15.0 million, with an additional $5.5 million available upon the satisfaction of certain conditions; bears a floating interest rate of the 1-month LIBOR plus 3.5%, subject to a floor rate of 4.0% and is subject to prepayment penalties subject to a declining scale from 3.0% penalty on or before the first anniversary date, a 2.0% penalty during the second anniversary year and a 1.0% penalty after the third anniversary date. |
Schedule of Future Mortgage Debt Maturities | Total future mortgage debt maturities, without respect to any extension of loan maturity, as of December 31, 2017 were as follows: For the year ending: December 31, 2018 $ 22,039,201 December 31, 2019 51,290,912 December 31, 2020 7,232,596 December 31, 2021 28,919,110 December 31, 2022 7,018,848 December 31, 2023 and thereafter 182,551,105 Total future maturities $ 299,051,772 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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: For the year ending: December 31, 2018 $ 568,112 December 31, 2019 466,465 December 31, 2020 351,464 December 31, 2021 351,464 December 31, 2022 351,464 December 31, 2023 and thereafter 3,920,165 Total $ 6,009,134 |
Preferred Stock and Units (Tabl
Preferred Stock and Units (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Preferred Stock And Units [Abstract] | |
Quarterly Distributions Declared and Payable by Operating Partnership | The following table presents the quarterly distributions by the Operating Partnership declared and payable per Preferred B unit for the years ended December 31, 2017, 2016, and 2015: Quarter Ended 2015 2016 2017 March 31, $ — $ — $ 0.50 June 30, $ — $ — $ 0.50 September 30, $ — $ .2111 (1) $ 0.50 December 31, $ — $ 0.50 $ 0.50 (1) For the short period from August 23, 2016 to September 30, 2016. The following table presents the quarterly distributions by the Operating Partnership declared and payable per Preferred C unit for the years ended December 31, 2017, 2016, and 2015: Quarter Ended 2015 2016 2017 March 31, $ — $ — $ — June 30, $ — $ — $ — September 30, $ — $ — $ — December 31, $ — $ — $ .4430 (2) (1) (2) For the short period from October 11, 2017 to December 31, 2017. |
Common Stock and Units (Tables)
Common Stock and Units (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Quarterly Distributions Declared and Payable by Operating Partnership | Common Unit Distributions – The following table presents the quarterly distributions by the Operating Partnership declared and payable per common unit for the years ended December 31, 2017, 2016, and 2015: Quarter Ended 2015 2016 2017 March 31, $ 0.070 $ 0.085 $ 0.100 June 30, $ 0.075 $ 0.090 $ 0.105 September 30, $ 0.080 $ 0.095 $ 0.110 December 31, $ 0.080 $ 0.095 $ 0.110 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Summary of Shares Allocations are Accounted For Fair Value on The Date of Allocations | The share allocations are accounted for at fair value on the date of allocation as follows December 31, 2017 December 31, 2016 Number of Shares Fair Value Number of Shares Fair Value Allocated shares 9,473 $ 64,321 - $ — Committed-to-be released shares 24,359 157,117 - — Total allocated and committed-to-be-released 33,832 $ 221,438 - $ — Unallocated shares 648,668 4,183,908 - — Total ESOP shares 682,500 $ 4,405,346 - $ — |
Unconsolidated Joint Venture (T
Unconsolidated Joint Venture (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Summarized Financial Information of Investment | Summarized financial information for this investment through July 31, 2015, which is accounted for under the equity method, is as follows: Seven Months Ended July 31, 2015 Revenue Rooms department $ 10,605,941 Food and beverage department 1,911,950 Other operating departments 880,564 Total revenue 13,398,455 Expenses Hotel operating expenses Rooms department 2,062,515 Food and beverage department 1,442,139 Other operating departments 388,087 Indirect 4,774,322 Total hotel operating expenses 8,667,063 Depreciation and amortization 1,060,339 General and administrative 252,565 Total operating expenses 9,979,967 Operating income 3,418,488 Interest expense (1,516,433 ) Net income $ 1,902,055 |
Indirect Hotel Operating Expe35
Indirect Hotel Operating Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Income And Expenses [Abstract] | |
Summary of Indirect Hotel Operating Expenses | Indirect hotel operating expenses consists of the following expenses incurred by the hotels: 2017 2016 2015 Sales and marketing $ 13,843,578 $ 13,537,887 $ 11,259,332 General and administrative 12,949,596 12,135,835 11,327,182 Repairs and maintenance 6,828,963 7,314,178 6,903,226 Utilities 5,820,589 6,429,686 6,115,356 Property taxes 5,729,464 5,983,280 5,110,659 Management fees, including incentive 4,170,977 3,865,362 3,490,586 Franchise fees 3,877,231 4,091,729 4,016,083 Insurance 2,446,269 2,594,783 2,305,966 Information and telecommunications 1,647,728 1,679,603 1,454,219 Other 297,808 104,594 85,338 Total indirect hotel operating expenses $ 57,612,203 $ 57,736,937 $ 52,067,947 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax (Benefit) Provision | The components of the provision for (benefit from) income taxes for the years ended December 31, 2017, 2016, and 2015 are as follows: Year Ended Year Ended Year Ended December 31, 2017 December 31, 2016 December 31, 2015 Current: Federal $ — $ — $ — State 239,582 191,332 444,538 239,582 191,332 444,538 Deferred: Federal 1,661,153 (1,294,408 ) (1,510,726 ) State (162,931 ) (264,558 ) (269,845 ) 1,498,222 (1,558,966 ) (1,780,571 ) $ 1,737,804 $ (1,367,634 ) $ (1,336,033 ) |
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, 2017 December 31, 2016 December 31, 2015 Statutory federal income tax provision (benefit) $ 600,880 $ (158,859 ) $ 1,705,610 Effect of non-taxable REIT income (loss) (1,621,526 ) (1,135,549 ) (2,866,950 ) Effect of change in federal income tax rate on net deferred tax assets 2,681,800 — — State income tax provision (benefit) 76,650 (73,226 ) (174,693 ) $ 1,737,804 $ (1,367,634 ) $ (1,336,033 ) |
Income (Loss) Per Share and P37
Income (Loss) Per Share and Per Unit (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income (Loss) Per Share | The computation of basic and diluted net income (loss) per share is presented below. Year Ended Year Ended Year Ended December 31, 2017 December 31, 2016 December 31, 2015 Numerator Net income (loss) available to common stockholders for basic and diluted computation $ (3,339,136 ) $ (218,173 ) $ 5,356,666 Denominator Weighted average number of common shares outstanding 14,443,674 14,896,994 12,541,117 Weighted average number of Unearned ESOP Shares (614,574 ) - - Total weighted average number of common shares outstanding for basic and diluted computation 13,829,100 14,896,994 12,541,117 Basic and diluted net income (loss) per share $ (0.24 ) $ (0.01 ) $ 0.43 |
Computation of Basic and Diluted Income (Loss) Per Unit | Income (Loss) Per Unit . The computation of basic and diluted income (loss) per unit is presented below. Year Ended Year Ended Year Ended December 31, 2017 December 31, 2016 December 31, 2015 Numerator Net income (loss) available to common unitholders for basic computation $ (3,752,150 ) $ (244,740 ) $ 6,397,653 Denominator Weighted average number of units outstanding 16,224,005 16,710,935 14,924,410 Basic and diluted net income (loss) per unit $ (0.23 ) $ (0.01 ) $ 0.43 |
Quarterly Operating Results -38
Quarterly Operating Results - Unaudited (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Operating Results | Quarters Ended 2017 March 31 June 30 September 30 December 31 Total revenue $ 38,694,886 $ 40,642,632 $ 36,769,471 $ 38,159,704 Total operating expenses 32,989,182 35,178,717 34,595,193 35,339,712 Net operating income 5,705,704 5,463,915 2,174,278 2,819,992 Net income (loss) 2,886,032 1,135,719 (936,000 ) (3,056,262 ) Net income (loss) attributable to common shareholders 1,851,090 296,850 (1,550,555 ) (3,936,522 ) Earnings (loss) per share attributable to common shareholders– basic and diluted $ 0.13 $ 0.02 $ (0.11 ) $ (0.29 ) Net income (loss) available to operating partnership unitholders 2,100,958 310,795 (1,741,000 ) (4,422,903 ) Earnings (loss) per unit attributable to operating partnership unitholders– basic and diluted $ 0.13 $ 0.02 $ (0.11 ) $ (0.27 ) Quarters Ended 2016 March 31 June 30 September 30 December 31 Total revenue $ 37,810,144 $ 41,824,954 $ 37,275,312 $ 35,935,342 Total operating expenses 33,025,990 34,645,809 33,539,913 33,026,914 Net operating income 4,784,154 7,179,145 3,735,399 2,908,428 Net income(loss) 545,874 1,977,550 (1,549,191 ) (74,084 ) Net income (loss) attributable to common shareholders 483,095 1,761,106 (1,716,234 ) (746,140 ) Earnings (loss) per share attributable to common shareholders– basic and diluted $ 0.03 $ 0.12 $ (0.11 ) $ (0.05 ) Net income (loss) available to operating partnership unitholders 545,874 1,977,550 (1,889,080 ) (879,084 ) Earnings (loss) per unit attributable to operating partnership unitholders– basic and diluted $ 0.03 $ 0.12 $ (0.11 ) $ (0.05 ) |
Organization and Description 39
Organization and Description of Business - Additional Information (Detail) | Nov. 15, 2017USD ($) | Oct. 17, 2017USD ($)shares | Oct. 11, 2017USD ($)shares | Jun. 29, 2017USD ($) | Jun. 01, 2017USD ($) | Feb. 07, 2017USD ($) | Jan. 30, 2017USD ($)RoomParkingSpaces | Dec. 02, 2016USD ($)$ / shares | Dec. 01, 2016USD ($) | Nov. 03, 2016USD ($) | Oct. 12, 2016USD ($)mortgage | Aug. 23, 2016USD ($)shares | Jun. 30, 2016USD ($) | Jun. 27, 2016USD ($) | Mar. 21, 2016 | Jan. 04, 2016USD ($) | Oct. 20, 2015USD ($) | Sep. 28, 2015USD ($) | Sep. 02, 2015USD ($)a | Jul. 17, 2015USD ($)shares | Jul. 07, 2015USD ($)mortgage | Jul. 02, 2015USD ($) | May 05, 2015USD ($) | Jun. 30, 2015USD ($)shares | Feb. 28, 2017USD ($)shares | Dec. 31, 2017USD ($)HotelRoom$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($) | Oct. 30, 2017 | Dec. 29, 2016USD ($) | Sep. 30, 2016USD ($) | Jan. 01, 2016USD ($) | Jul. 31, 2015 | Jul. 30, 2015 | Jul. 01, 2015shares | Nov. 21, 2014 | Jun. 27, 2014 |
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||||||||||
Date of incorporation | Aug. 20, 2004 | ||||||||||||||||||||||||||||||||||||
Investment in number of hotels | Hotel | 11 | ||||||||||||||||||||||||||||||||||||
Rooms in hotel | Room | 2,838 | ||||||||||||||||||||||||||||||||||||
Date of commencement of business | Dec. 21, 2004 | ||||||||||||||||||||||||||||||||||||
Number of hotels acquired before commencement of business | Hotel | 6 | ||||||||||||||||||||||||||||||||||||
Debt instrument maturity date | Nov. 13, 2017 | Jul. 7, 2019 | |||||||||||||||||||||||||||||||||||
Common stock, shares issued | shares | 435,000 | 14,078,831 | 14,468,551 | 3,000,000 | |||||||||||||||||||||||||||||||||
Proceeds from sale of common stock | $ 2,800,000 | $ 19,800,000 | $ 700,000 | $ 23,250,818 | |||||||||||||||||||||||||||||||||
Mortgage loan term period | 5 years | 4 years | |||||||||||||||||||||||||||||||||||
Number of parts mortgage loan issued | mortgage | 2 | 2 | |||||||||||||||||||||||||||||||||||
Mortgage loans | $ 20,500,000 | $ 18,500,000 | $ 299,051,772 | $ 284,542,043 | |||||||||||||||||||||||||||||||||
Mortgage loan additional earn-out provision | 5,500,000 | 1,500,000 | |||||||||||||||||||||||||||||||||||
Proceeds from mortgage loans | $ 15,000,000 | $ 2,000,000 | 40,500,000 | 102,700,000 | 127,000,000 | ||||||||||||||||||||||||||||||||
Period subject to certain terms and conditions | 1 year | ||||||||||||||||||||||||||||||||||||
Floating interest rate period | 1 month | 30 days | |||||||||||||||||||||||||||||||||||
Floating rate of interest rate | 3.50% | 3.50% | |||||||||||||||||||||||||||||||||||
Fixed interest rate | 4.00% | 4.00% | |||||||||||||||||||||||||||||||||||
Amortization Period | 18 years | 25 years | |||||||||||||||||||||||||||||||||||
Business acquisition percentage of voting interests acquired | 75.00% | ||||||||||||||||||||||||||||||||||||
Proceeds from sale of preferred stock | 30,488,660 | 37,766,531 | |||||||||||||||||||||||||||||||||||
Repurchase of common stock | $ 2,731,041 | $ 3,164,536 | |||||||||||||||||||||||||||||||||||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||||||||||||||||||||||||
Number of common stock shares repurchased | shares | 401,720 | 481,100 | |||||||||||||||||||||||||||||||||||
Maximum amount allocated to purchase common stock under ESOP | $ 5,000,000 | $ 5,000,000 | |||||||||||||||||||||||||||||||||||
Number of common stock, shares purchased | shares | 682,500 | ||||||||||||||||||||||||||||||||||||
Purchased common stock at an aggregate cost | $ 4,900,000 | $ 4,874,758 | |||||||||||||||||||||||||||||||||||
Crowne Plaza Hampton Marina [Member] | |||||||||||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||||||||||
Proceeds from sale of assets | $ 5,600,000 | ||||||||||||||||||||||||||||||||||||
Maximum [Member] | |||||||||||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||||||||||
Repurchase of common stock | $ 10,000,000 | ||||||||||||||||||||||||||||||||||||
Sotherly Hotels LP [Member] | |||||||||||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||||||||||
Proceeds from mortgage loans | $ 40,500,000 | $ 102,700,000 | $ 127,000,000 | ||||||||||||||||||||||||||||||||||
8.0% Senior Unsecured Notes [Member] | |||||||||||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||||||||||
Interest rate | 8.00% | ||||||||||||||||||||||||||||||||||||
Debt instrument redeemed, principal amount | $ 27,600,000 | ||||||||||||||||||||||||||||||||||||
8.0% Senior Unsecured Notes [Member] | Sotherly Hotels LP [Member] | |||||||||||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||||||||||
Interest rate | 8.00% | ||||||||||||||||||||||||||||||||||||
7.0% Senior Unsecured Notes [Member] | |||||||||||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||||||||||
Interest rate | 7.00% | 7.00% | |||||||||||||||||||||||||||||||||||
Debt instrument maturity date | Nov. 15, 2019 | ||||||||||||||||||||||||||||||||||||
Debt instrument redeemed, principal amount | $ 25,300,000 | ||||||||||||||||||||||||||||||||||||
Debt instrument redeemed date | Nov. 15, 2017 | Nov. 15, 2017 | |||||||||||||||||||||||||||||||||||
Percentage of redemption price equal to principal amount | 101.00% | ||||||||||||||||||||||||||||||||||||
7.0% Senior Unsecured Notes [Member] | Sotherly Hotels LP [Member] | |||||||||||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||||||||||
Interest rate | 7.00% | ||||||||||||||||||||||||||||||||||||
8% Series B Cumulative Redeemable Perpetual Preferred Stock [Member] | |||||||||||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||||||||||
Preferred stock, shares sale and issuance | shares | 1,610,000 | ||||||||||||||||||||||||||||||||||||
Preferred stock, dividend rate percentage | 8.00% | ||||||||||||||||||||||||||||||||||||
Proceeds from sale of preferred stock | $ 37,800,000 | ||||||||||||||||||||||||||||||||||||
7.875% Series C Cumulative Redeemable Perpetual Preferred Stock [Member] | |||||||||||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||||||||||
Preferred stock, shares sale and issuance | shares | 100,000 | 1,200,000 | |||||||||||||||||||||||||||||||||||
Preferred stock, dividend rate percentage | 7.875% | ||||||||||||||||||||||||||||||||||||
Proceeds from sale of preferred stock | $ 2,500,000 | $ 28,000,000 | |||||||||||||||||||||||||||||||||||
Double Tree by Hilton Jacksonville Riverfront [Member] | |||||||||||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||||||||||
Additional proceeds on mortgage loan | $ 2,000,000 | ||||||||||||||||||||||||||||||||||||
Double Tree by Hilton Jacksonville Riverfront [Member] | Mortgage Loans [Member] | |||||||||||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||||||||||
Debt instrument maturity date | Jul. 11, 2024 | ||||||||||||||||||||||||||||||||||||
Mortgage loans | $ 35,294,741 | 19,291,716 | |||||||||||||||||||||||||||||||||||
Amortization Period | 30 years | ||||||||||||||||||||||||||||||||||||
Double Tree by Hilton Laurel [Member] | |||||||||||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||||||||||
Additional proceeds on mortgage loan | $ 2,600,000 | ||||||||||||||||||||||||||||||||||||
Double Tree by Hilton Laurel [Member] | Mortgage Loans [Member] | |||||||||||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||||||||||
Debt instrument maturity date | Aug. 5, 2021 | ||||||||||||||||||||||||||||||||||||
Mortgage loans | $ 9,132,558 | 9,329,005 | |||||||||||||||||||||||||||||||||||
Amortization Period | 25 years | ||||||||||||||||||||||||||||||||||||
Crowne Plaza Tampa Westshore [Member] | Mortgage Loans [Member] | |||||||||||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||||||||||
Debt instrument maturity date | Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||
Mortgage loans | $ 15,284,200 | 15,561,400 | |||||||||||||||||||||||||||||||||||
Mortgage loan additional earn-out provision | 3,300,000 | ||||||||||||||||||||||||||||||||||||
Proceeds from mortgage loans | $ 15,700,000 | ||||||||||||||||||||||||||||||||||||
Floating rate of interest rate | 3.75% | ||||||||||||||||||||||||||||||||||||
Fixed interest rate | 3.75% | ||||||||||||||||||||||||||||||||||||
Amortization Period | 25 years | ||||||||||||||||||||||||||||||||||||
Sheraton Louisville Riverside [Member] | Mortgage Loans [Member] | |||||||||||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||||||||||
Interest rate | 4.27% | ||||||||||||||||||||||||||||||||||||
Debt instrument maturity date | Dec. 1, 2026 | Dec. 1, 2026 | |||||||||||||||||||||||||||||||||||
Mortgage loan term period | 5 years | ||||||||||||||||||||||||||||||||||||
Mortgage loans | $ 11,701,930 | 11,977,557 | |||||||||||||||||||||||||||||||||||
Proceeds from mortgage loans | $ 12,000,000 | ||||||||||||||||||||||||||||||||||||
Amortization Period | 25 years | 25 years | |||||||||||||||||||||||||||||||||||
Sheraton Louisville Riverside [Member] | Mortgage Loans [Member] | Sotherly Hotels LP [Member] | |||||||||||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||||||||||
Guaranteed percentage of unpaid principal balance, interest, and other amounts owed | 50.00% | ||||||||||||||||||||||||||||||||||||
Crowne Plaza Hampton Marina [Member] | Mortgage Loans [Member] | |||||||||||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||||||||||
Interest rate | 5.00% | 5.00% | |||||||||||||||||||||||||||||||||||
Debt instrument maturity date | Nov. 1, 2019 | ||||||||||||||||||||||||||||||||||||
Mortgage loans | $ 0 | 2,584,633 | |||||||||||||||||||||||||||||||||||
Amortization Period | 3 years | ||||||||||||||||||||||||||||||||||||
Debt instrument, date of first required payment | Dec. 1, 2016 | ||||||||||||||||||||||||||||||||||||
Debt instrument periodic payment | $ 15,367 | $ 15,367 | |||||||||||||||||||||||||||||||||||
DoubleTree Resort by Hilton Hollywood Beach [Member] | |||||||||||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||||||||||
Percentage of operating partnership owned | 100.00% | ||||||||||||||||||||||||||||||||||||
Business acquisition percentage of voting interests acquired | 75.00% | ||||||||||||||||||||||||||||||||||||
First Installment [Member] | |||||||||||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||||||||||
Mortgage loans | $ 18,000,000 | ||||||||||||||||||||||||||||||||||||
Second Installment [Member] | |||||||||||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||||||||||
Mortgage loans | $ 500,000 | ||||||||||||||||||||||||||||||||||||
Common Stock [Member] | |||||||||||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||||||||||
Common stock, shares issued | shares | 98,682 | ||||||||||||||||||||||||||||||||||||
Repurchase of common stock | $ 4,017 | $ 4,811 | |||||||||||||||||||||||||||||||||||
Number of common stock shares repurchased | shares | 401,720 | 481,100 | |||||||||||||||||||||||||||||||||||
Bank Of America [Member] | DoubleTree Resort by Hilton Hollywood Beach [Member] | |||||||||||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||||||||||
Interest rate | 4.913% | ||||||||||||||||||||||||||||||||||||
Amortization schedule | 30 years | ||||||||||||||||||||||||||||||||||||
Debt instrument maturity date | Oct. 1, 2025 | ||||||||||||||||||||||||||||||||||||
Mortgage loan term period | 10 years | ||||||||||||||||||||||||||||||||||||
Mortgage loans | $ 60,000,000 | ||||||||||||||||||||||||||||||||||||
MONY Life Insurance Company [Member] | Hilton Savannah DeSoto [Member] | |||||||||||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||||||||||
Interest rate | 4.25% | ||||||||||||||||||||||||||||||||||||
Amortization schedule | 25 years | ||||||||||||||||||||||||||||||||||||
Debt instrument maturity date | Jan. 1, 2027 | Jul. 1, 2026 | |||||||||||||||||||||||||||||||||||
Mortgage loan term period | 10 years | 10 years | |||||||||||||||||||||||||||||||||||
Mortgage loan additional earn-out provision | $ 5,000,000 | ||||||||||||||||||||||||||||||||||||
Proceeds from mortgage loans | $ 30,000,000 | ||||||||||||||||||||||||||||||||||||
Fixed interest rate | 4.25% | ||||||||||||||||||||||||||||||||||||
Amortization Period | 25 years | ||||||||||||||||||||||||||||||||||||
Mortgage loans | $ 35,000,000 | $ 35,000,000 | |||||||||||||||||||||||||||||||||||
Fifth Third Bank [Member] | Crowne Plaza Tampa Westshore [Member] | |||||||||||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||||||||||
Mortgage loan term period | 3 years | ||||||||||||||||||||||||||||||||||||
Mortgage loans | $ 19,000,000 | ||||||||||||||||||||||||||||||||||||
Period subject to certain terms and conditions | 2 years | ||||||||||||||||||||||||||||||||||||
Floating interest rate period | 30 days | ||||||||||||||||||||||||||||||||||||
Floating rate of interest rate | 3.75% | ||||||||||||||||||||||||||||||||||||
Fixed interest rate | 3.75% | ||||||||||||||||||||||||||||||||||||
Amortization Period | 25 years | ||||||||||||||||||||||||||||||||||||
Wells Fargo Bank, N.A [Member] | Double Tree by Hilton Jacksonville Riverfront [Member] | |||||||||||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||||||||||
Debt instrument maturity date | Jul. 11, 2024 | ||||||||||||||||||||||||||||||||||||
Mortgage loans | $ 35,500,000 | ||||||||||||||||||||||||||||||||||||
Fixed interest rate | 4.88% | ||||||||||||||||||||||||||||||||||||
Amortization Period | 30 years | ||||||||||||||||||||||||||||||||||||
Operating Partnership [Member] | |||||||||||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||||||||||
Percentage of operating partnership owned | 88.80% | ||||||||||||||||||||||||||||||||||||
Commercial Unit of Hyde Resort & Residences [Member] | |||||||||||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||||||||||
Investment in number of hotels | Hotel | 1 | ||||||||||||||||||||||||||||||||||||
Rooms in hotel | Room | 400 | 400 | |||||||||||||||||||||||||||||||||||
Commercial unit purchase price | $ 4,800,000 | ||||||||||||||||||||||||||||||||||||
Number of parking space lease agreement entered | ParkingSpaces | 400 | ||||||||||||||||||||||||||||||||||||
Proceeds from pre-opening services fee | $ 800,000 | ||||||||||||||||||||||||||||||||||||
Georgian Terrace [Member] | |||||||||||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||||||||||
Development parcel | a | 0.3 | ||||||||||||||||||||||||||||||||||||
Proceeds from sale of real estate | $ 2,200,000 | ||||||||||||||||||||||||||||||||||||
Georgian Terrace [Member] | Bank Of America [Member] | |||||||||||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||||||||||
Carrying amount | $ 47,000,000 | ||||||||||||||||||||||||||||||||||||
Interest rate | 4.42% | ||||||||||||||||||||||||||||||||||||
Amortization schedule | 30 years | ||||||||||||||||||||||||||||||||||||
Debt instrument maturity date | Jun. 1, 2025 | ||||||||||||||||||||||||||||||||||||
Commercial Unit of Planned Hyde Beach House Resort & Residences [Member] | |||||||||||||||||||||||||||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||||||||||||||||||||||||||
Commercial unit purchase price | $ 5,100,000 | ||||||||||||||||||||||||||||||||||||
Pre-opening services fee receivable | $ 800,000 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies - Additional Information (Detail) | Jan. 01, 2018USD ($) | Dec. 31, 2017USD ($)Segmentshares | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jul. 31, 2015 | Jul. 30, 2015 |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Impairment of hotel properties | $ 0 | $ 0 | $ 500,000 | |||
Percentage of remaining ownership interest acquired | 75.00% | |||||
Gain on change in control | 6,603,148 | |||||
Federal Deposit Insurance Corporation protection limits | 250,000 | |||||
Un-amortized franchise fees | 532,070 | 386,612 | ||||
Amortization expense | 46,209 | 52,330 | 53,347 | |||
Deferred offering costs write off | 500,000 | 0 | ||||
Capitalized deferred offering costs for amortization | 0 | |||||
Lease revenue | 1,780,525 | 1,785,934 | 1,776,518 | |||
Deferred income taxes | 5,451,118 | 6,949,340 | ||||
Deferred tax assets related to net operating losses | $ 4,900,000 | |||||
Minimum percentage of likelihood of realization of deferred tax assets | 50.00% | |||||
Deferred tax assets valuation allowance | $ 0 | |||||
Uncertain tax positions | 0 | |||||
Compensation cost recognized | 347,387 | 211,682 | 285,978 | |||
Advertising cost | 357,379 | 452,665 | 280,625 | |||
Gain on involuntary conversion of assets | $ 2,242,876 | 0 | 0 | |||
Number of reportable segment | Segment | 1 | |||||
Reclassifications of expenses from rooms expense to indirect expense | $ 57,612,203 | 57,736,937 | 52,067,947 | |||
Reclassification into loss on extinguishments of debt | (1,178,348) | (1,417,905) | (772,907) | |||
ASU 2014-09 [Member] | Subsequent Event [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Adjustment recorded to opening balance of retained earnings | $ 0 | |||||
Impact to net income | $ 0 | |||||
Reclassifications of Expenses [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Reclassifications of expenses from rooms expense to indirect expense | 600,000 | 800,000 | ||||
Reclassification into loss on extinguishments of debt | 300,000 | |||||
Other Operating Departments Revenue [Member] | Hurricane [Member] | Houston, Texas and Tampa, Florida [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Insurance recoveries from business interruption | $ 300,000 | |||||
2004 Plan [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Shares issued under plan | shares | 337,438 | |||||
Termination year of stock based compensation plan | 2,013 | |||||
Stock based compensation plan termination date | Apr. 30, 2013 | |||||
2004 Plan [Member] | Executives and Employees [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Shares issued under plan | shares | 255,938 | |||||
2004 Plan [Member] | Director [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Shares issued under plan | shares | 81,500 | |||||
Stock-based Compensation , Number of Shares, Vested | shares | 81,500 | |||||
2013 Plan [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Shares issued under plan | shares | 163,350 | |||||
Performance-based stock awards granted | shares | 0 | |||||
2013 Plan [Member] | Director [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Shares issued but not vested | shares | 15,000 | |||||
Shares award vesting date | Dec. 31, 2018 | |||||
2013 Plan [Member] | Executives, Directors and Employees [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Shares issued under plan | shares | 77,600 | |||||
2013 Plan [Member] | Director and One Employee [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Shares issued under plan | shares | 85,750 | |||||
2013 Plan [Member] | One Employee [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Stock award vesting period | 5 years | |||||
Shares issued but not vested | shares | 25,000 | |||||
2004 and 2013 Plan [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Compensation cost recognized | $ 109,080 | $ 211,682 | 285,978 | |||
DoubleTree Resort by Hilton Hollywood Beach [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Percentage of ownership interest | 100.00% | 100.00% | ||||
Percentage of remaining ownership interest acquired | 75.00% | |||||
Sotherly Hotels LP [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Impairment of hotel properties | 500,000 | |||||
Gain on change in control | $ 6,603,148 | $ 6,603,148 | 6,603,148 | |||
Deferred income taxes | 5,451,118 | 6,949,340 | ||||
Compensation cost recognized | 309,574 | 211,682 | 285,978 | |||
Gain on involuntary conversion of assets | 2,242,876 | |||||
Reclassifications of expenses from rooms expense to indirect expense | 57,612,203 | 57,141,692 | 52,067,947 | |||
Reclassification into loss on extinguishments of debt | $ (1,178,348) | $ (1,417,905) | $ (772,907) | |||
Maximum [Member] | 2004 Plan [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Restricted and performance stock awards permitted to grant to employees and directors | shares | 350,000 | |||||
Maximum [Member] | 2013 Plan [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Restricted and performance stock awards permitted to grant to employees and directors | shares | 750,000 | |||||
Buildings and Improvements [Member] | Minimum [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated useful lives of the assets | 7 years | |||||
Buildings and Improvements [Member] | Maximum [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated useful lives of the assets | 39 years | |||||
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated useful lives of the assets | 3 years | |||||
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated useful lives of the assets | 10 years |
Summary of Significant Accoun41
Summary of Significant Accounting Policies - Schedule of Recurring Assets and Liabilities Measured at Fair Value (Detail) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Level 1 [Member] | Unsecured Notes [Member] | ||
Derivatives Fair Value [Line Items] | ||
Debt instruments measured at fair value | $ (26,241,160) | |
Level 2 [Member] | Interest Rate Cap [Member] | ||
Derivatives Fair Value [Line Items] | ||
Interest rate cap | $ 5,213 | 33,597 |
Level 2 [Member] | Mortgage Loans [Member] | ||
Derivatives Fair Value [Line Items] | ||
Debt instruments measured at fair value | $ (292,368,370) | $ (281,840,780) |
Summary of Significant Accoun42
Summary of Significant Accounting Policies - Schedule of Recurring Assets and Liabilities Measured at Fair Value (Detail) (Parenthetical) (Detail) | Dec. 31, 2017 | Dec. 31, 2016 |
1-Month LIBOR | ||
Derivatives Fair Value [Line Items] | ||
Interest rate cap for loan | 2.50% | 2.50% |
Summary of Significant Accoun43
Summary of Significant Accounting Policies - Schedule of Minimum Future Lease Payments Receivable (Detail) | Dec. 31, 2017USD ($) |
Leases [Abstract] | |
For the year ending: December 31, 2018 | $ 1,112,282 |
December 31, 2019 | 868,289 |
December 31, 2020 | 832,695 |
December 31, 2021 | 725,244 |
December 31, 2022 | 584,901 |
December 31, 2023 and thereafter | 2,500,972 |
Total | $ 6,624,383 |
Acquisition of Hotel Properti44
Acquisition of Hotel Properties - Additional Information (Detail) - Commercial Condominium Unit of Hyde Resort & Residences [Member] - USD ($) $ in Millions | Jan. 30, 2017 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||
Commercial unit purchase price | $ 4.8 | |
Total revenue from acquisitions | $ 4 | |
Net loss from operations | $ 0.7 |
Acquisition of Hotel Properti45
Acquisition of Hotel Properties - Allocation of Purchase Price Based on Fair Values (Detail) - USD ($) | Jan. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||
Net cash | $ 3,986,849 | $ 25,525,754 | |
Commercial Condominium Unit of Hyde Resort & Residences [Member] | |||
Business Acquisition [Line Items] | |||
Land and land improvements | $ 500 | ||
Buildings and improvements | 4,309,500 | ||
Furniture, fixtures and equipment | 72,616 | ||
Investment in hotel properties | 4,382,616 | ||
Accrued liabilities and other costs | (866,142) | ||
Prepaid expenses, inventory and other assets | 470,375 | ||
Net cash | $ 3,986,849 |
Investment in Hotel Propertie46
Investment in Hotel Properties, Net and Investment in Hotel Properties Held for Sale, Net - Schedule of Investment in Hotel Properties, Net (Detail) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Total Gross | $ 456,505,158 | $ 438,307,037 |
Less: accumulated depreciation and impairment | (98,705,646) | (89,713,125) |
Total Net | 357,799,512 | 348,593,912 |
Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total Gross | 59,504,625 | 57,851,380 |
Buildings and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total Gross | 348,532,577 | 336,996,876 |
Furniture, Fixtures and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total Gross | $ 48,467,956 | $ 43,458,781 |
Investment in Hotel Propertie47
Investment in Hotel Properties, Net and Investment in Hotel Properties Held for Sale, Net - Schedule of Investment in Hotel Properties Held for Sale, Net (Detail) | Dec. 31, 2016USD ($) |
Property, Plant and Equipment [Line Items] | |
Total Gross | $ 9,628,608 |
Less: accumulated depreciation and impairment | (4,295,608) |
Investment in Hotel Properties Held for Sale, Net | 5,333,000 |
Land and Land Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Total Gross | 1,097,096 |
Buildings and Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Total Gross | 6,242,504 |
Furniture, Fixtures and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Total Gross | $ 2,289,008 |
Investment in Hotel Propertie48
Investment in Hotel Properties, Net and Investment in Hotel Properties Held for Sale, Net - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property Plant And Equipment Capitalized Interest Costs [Abstract] | |||
Impairment of hotel properties | $ 0 | $ 0 | $ 500,000 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ in Millions | Nov. 15, 2017 | Mar. 21, 2016 | Jul. 07, 2015 | Nov. 21, 2014 | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||||||
Mortgage loan outstanding balance | $ 297.3 | $ 282.7 | ||||
Debt instrument maturity date | Nov. 13, 2017 | Jul. 7, 2019 | ||||
7.0% Senior Unsecured Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate on loan | 7.00% | 7.00% | ||||
Borrowed amount | $ 25.3 | |||||
Debt instrument maturity date | Nov. 15, 2019 | |||||
Debt Instrument redeemed date | Nov. 15, 2017 | Nov. 15, 2017 | ||||
Notes face value | 101.00% |
Debt - Schedule of Mortgage Deb
Debt - Schedule of Mortgage Debt Obligations on Hotels (Detail) - USD ($) | Nov. 03, 2016 | Oct. 12, 2016 | Mar. 21, 2016 | Jul. 07, 2015 | Dec. 31, 2017 | Feb. 07, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | |||||||
Mortgage loans | $ 20,500,000 | $ 18,500,000 | $ 299,051,772 | $ 284,542,043 | |||
Maturity Date | Nov. 13, 2017 | Jul. 7, 2019 | |||||
Amortization Provisions, Term | 18 years | 25 years | |||||
Excess Interest rate over LIBOR on mortgage debt | 3.50% | 3.50% | |||||
Deferred financing costs, net | (1,923,928) | (2,049,409) | |||||
Unamortized premium on loan | 190,972 | 215,655 | |||||
Total Mortgage Loans, Net | $ 297,318,816 | 282,708,289 | |||||
Crowne Plaza Hampton Marina [Member] | Mortgage Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Mortgage loans | $ 0 | 2,584,633 | |||||
Prepayment Penalties | None | ||||||
Maturity Date | Nov. 1, 2019 | ||||||
Amortization Provisions, Term | 3 years | ||||||
Interest rate applicable to the mortgage loan | 5.00% | ||||||
Crowne Plaza Tampa Westshore [Member] | Mortgage Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Mortgage loans | $ 15,284,200 | 15,561,400 | |||||
Prepayment Penalties | None | ||||||
Maturity Date | Jun. 30, 2019 | ||||||
Amortization Provisions, Term | 25 years | ||||||
Excess Interest rate over LIBOR on mortgage debt | 3.75% | ||||||
The DeSoto [Member] | Mortgage Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Mortgage loans | $ 34,645,929 | 30,000,000 | |||||
Prepayment Penalties | Yes | ||||||
Maturity Date | Jul. 1, 2026 | ||||||
Amortization Provisions, Term | 25 years | ||||||
Interest rate applicable to the mortgage loan | 4.25% | ||||||
Double Tree by Hilton Jacksonville Riverfront [Member] | Mortgage Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Mortgage loans | $ 35,294,741 | 19,291,716 | |||||
Prepayment Penalties | Yes | ||||||
Maturity Date | Jul. 11, 2024 | ||||||
Amortization Provisions, Term | 30 years | ||||||
Interest rate applicable to the mortgage loan | 4.88% | ||||||
Double Tree by Hilton Laurel [Member] | Mortgage Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Mortgage loans | $ 9,132,558 | 9,329,005 | |||||
Prepayment Penalties | Yes | ||||||
Maturity Date | Aug. 5, 2021 | ||||||
Amortization Provisions, Term | 25 years | ||||||
Interest rate applicable to the mortgage loan | 5.25% | ||||||
Double Tree By Hilton Philadelphia Airport [Member] | Mortgage Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Mortgage loans | $ 30,432,260 | 31,261,991 | |||||
Prepayment Penalties | None | ||||||
Maturity Date | Apr. 1, 2019 | ||||||
Amortization Provisions, Term | 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 | $ 14,503,925 | 14,773,885 | |||||
Prepayment Penalties | n/a | ||||||
Maturity Date | Aug. 1, 2018 | ||||||
Amortization Provisions, Term | 30 years | ||||||
Interest rate applicable to the mortgage loan | 4.78% | ||||||
DoubleTree Resort by Hilton Hollywood Beach [Member] | Mortgage Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Mortgage loans | $ 58,023,567 | 58,935,818 | |||||
Prepayment Penalties | n/a | ||||||
Maturity Date | Oct. 1, 2025 | ||||||
Amortization Provisions, Term | 30 years | ||||||
Interest rate applicable to the mortgage loan | 4.913% | ||||||
Georgian Terrace [Member] | Mortgage Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Mortgage loans | $ 45,032,662 | 45,826,038 | |||||
Prepayment Penalties | n/a | ||||||
Maturity Date | Jun. 1, 2025 | ||||||
Amortization Provisions, Term | 30 years | ||||||
Interest rate applicable to the mortgage loan | 4.42% | ||||||
Hilton Wilmington Riverside [Member] | Mortgage Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Mortgage loans | $ 30,000,000 | 30,000,000 | |||||
Prepayment Penalties | Yes | ||||||
Maturity Date | Jan. 1, 2027 | ||||||
Amortization Provisions, Term | 25 years | ||||||
Interest rate applicable to the mortgage loan | 4.25% | ||||||
Sheraton Louisville Riverside [Member] | Mortgage Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Mortgage loans | $ 11,701,930 | 11,977,557 | |||||
Prepayment Penalties | Yes | ||||||
Maturity Date | Dec. 1, 2026 | Dec. 1, 2026 | |||||
Amortization Provisions, Term | 25 years | 25 years | |||||
Interest rate applicable to the mortgage loan | 4.27% | ||||||
The Whitehall [Member] | Mortgage Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Mortgage loans | $ 15,000,000 | $ 15,000,000 | |||||
Prepayment Penalties | Yes | ||||||
Maturity Date | Oct. 12, 2021 | ||||||
Amortization Provisions, Term | 18 years | ||||||
Excess Interest rate over LIBOR on mortgage debt | 3.50% |
Debt - Schedule of Mortgage D51
Debt - Schedule of Mortgage Debt Obligations on Hotels (Parenthetical) (Detail) - USD ($) | Nov. 03, 2016 | Oct. 12, 2016 | Mar. 21, 2016 | Jul. 07, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Feb. 07, 2017 | Jun. 27, 2014 |
Debt Instrument [Line Items] | |||||||||
Amortization Period | 18 years | 25 years | |||||||
Maturity Date | Nov. 13, 2017 | Jul. 7, 2019 | |||||||
Mortgage loans | $ 20,500,000 | $ 18,500,000 | $ 299,051,772 | $ 284,542,043 | |||||
Proceeds of mortgage debt | 15,000,000 | $ 2,000,000 | $ 40,500,000 | 102,700,000 | $ 127,000,000 | ||||
Mortgage loan additional earn-out provision | $ 5,500,000 | $ 1,500,000 | |||||||
Excess Interest rate over LIBOR on mortgage debt | 3.50% | 3.50% | |||||||
Fixed interest rate | 4.00% | 4.00% | |||||||
Period subject to certain terms and conditions | 1 year | ||||||||
Floating interest rate period | 1 month | 30 days | |||||||
Mortgage Loans [Member] | Crowne Plaza Hampton Marina [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Note extended date | 2016-11 | ||||||||
Amortization Period | 3 years | ||||||||
Maturity Date | Nov. 1, 2019 | ||||||||
Debt instrument periodic payment | $ 15,367 | $ 15,367 | |||||||
Interest rate | 5.00% | 5.00% | |||||||
Mortgage loans | 2,584,633 | $ 0 | |||||||
Interest rate applicable to the mortgage loan | 5.00% | ||||||||
Mortgage Loans [Member] | Crowne Plaza Tampa Westshore [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Amortization Period | 25 years | ||||||||
Maturity Date | Jun. 30, 2019 | ||||||||
Mortgage loans | $ 15,284,200 | 15,561,400 | |||||||
Proceeds of mortgage debt | 15,700,000 | ||||||||
Mortgage loan additional earn-out provision | $ 3,300,000 | ||||||||
Excess Interest rate over LIBOR on mortgage debt | 3.75% | ||||||||
Fixed interest rate | 3.75% | ||||||||
Mortgage Loans [Member] | The DeSoto [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Amortization Period | 25 years | ||||||||
Maturity Date | Jul. 1, 2026 | ||||||||
Mortgage loans | $ 34,645,929 | 30,000,000 | |||||||
Proceeds of mortgage debt | 30,000,000 | ||||||||
Mortgage loan additional earn-out provision | $ 5,000,000 | ||||||||
Period subject to certain terms and conditions | 1 year | ||||||||
Period before maturity in which prepayment is allowed with out penalty | 120 days | ||||||||
Interest rate applicable to the mortgage loan | 4.25% | ||||||||
Mortgage Loans [Member] | Double Tree by Hilton Jacksonville Riverfront [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Amortization Period | 30 years | ||||||||
Maturity Date | Jul. 11, 2024 | ||||||||
Mortgage loans | $ 35,294,741 | 19,291,716 | |||||||
Prepayment date before maturity in which prepayment is allowed with penalty | Mar. 31, 2024 | ||||||||
Prepayment date before maturity | Aug. 31, 2019 | ||||||||
Interest rate applicable to the mortgage loan | 4.88% | ||||||||
Mortgage Loans [Member] | Double Tree by Hilton Laurel [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Amortization Period | 25 years | ||||||||
Maturity Date | Aug. 5, 2021 | ||||||||
Mortgage loans | $ 9,132,558 | 9,329,005 | |||||||
Prepayment date before maturity in which prepayment is allowed without penalty | Apr. 30, 2021 | ||||||||
Interest rate applicable to the mortgage loan | 5.25% | ||||||||
Mortgage Loans [Member] | Double Tree by Hilton Laurel [Member] | Minimum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Prepayment date before maturity in which prepayment is allowed without penalty | Apr. 30, 2017 | ||||||||
Mortgage Loans [Member] | Double Tree by Hilton Laurel [Member] | Maximum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Prepayment date before maturity in which prepayment is allowed without penalty | Aug. 31, 2017 | ||||||||
Mortgage Loans [Member] | Double Tree By Hilton Philadelphia Airport [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Amortization Period | 25 years | ||||||||
Maturity Date | Apr. 1, 2019 | ||||||||
Mortgage loans | $ 30,432,260 | 31,261,991 | |||||||
Excess Interest rate over LIBOR on mortgage debt | 3.00% | ||||||||
Mortgage Loans [Member] | Double Tree By Hilton Philadelphia Airport [Member] | Minimum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 3.50% | ||||||||
Mortgage Loans [Member] | Doubletree By Hilton Raleigh Brownstone - University [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Amortization Period | 30 years | ||||||||
Maturity Date | Aug. 1, 2018 | ||||||||
Mortgage loans | $ 14,503,925 | 14,773,885 | |||||||
Number of months for prepayment before maturity | 2 months | ||||||||
Interest rate applicable to the mortgage loan | 4.78% | ||||||||
Mortgage Loans [Member] | DoubleTree Resort by Hilton Hollywood Beach [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Amortization Period | 30 years | ||||||||
Maturity Date | Oct. 1, 2025 | ||||||||
Mortgage loans | $ 58,023,567 | 58,935,818 | |||||||
Prepayment date before maturity | Jun. 30, 2025 | ||||||||
Interest rate applicable to the mortgage loan | 4.913% | ||||||||
Mortgage Loans [Member] | Georgian Terrace [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Amortization Period | 30 years | ||||||||
Maturity Date | Jun. 1, 2025 | ||||||||
Mortgage loans | $ 45,032,662 | 45,826,038 | |||||||
Prepayment date before maturity | Feb. 28, 2025 | ||||||||
Interest rate applicable to the mortgage loan | 4.42% | ||||||||
Mortgage Loans [Member] | Hilton Wilmington Riverside [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Amortization Period | 25 years | ||||||||
Maturity Date | Jan. 1, 2027 | ||||||||
Mortgage loans | $ 30,000,000 | 30,000,000 | |||||||
Proceeds of mortgage debt | 30,000,000 | ||||||||
Mortgage loan additional earn-out provision | $ 5,000,000 | ||||||||
Period subject to certain terms and conditions | 1 year | ||||||||
Period before maturity in which prepayment is allowed with out penalty | 120 days | ||||||||
Interest rate applicable to the mortgage loan | 4.25% | ||||||||
Mortgage Loans [Member] | Sheraton Louisville Riverside [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Amortization Period | 25 years | 25 years | |||||||
Maturity Date | Dec. 1, 2026 | Dec. 1, 2026 | |||||||
Interest rate | 4.27% | ||||||||
Mortgage loans | $ 11,701,930 | 11,977,557 | |||||||
Proceeds of mortgage debt | $ 12,000,000 | ||||||||
Interest rate applicable to the mortgage loan | 4.27% | ||||||||
Mortgage Loans [Member] | The Whitehall [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Amortization Period | 18 years | ||||||||
Maturity Date | Oct. 12, 2021 | ||||||||
Mortgage loans | $ 15,000,000 | $ 15,000,000 | |||||||
Proceeds of mortgage debt | 15,000,000 | ||||||||
Mortgage loan additional earn-out provision | $ 5,500,000 | ||||||||
Excess Interest rate over LIBOR on mortgage debt | 3.50% | ||||||||
Fixed interest rate | 4.00% | ||||||||
Floating interest rate period | 1 month | ||||||||
Mortgage Loans [Member] | The Whitehall [Member] | Prepayment Penalty Before to First Anniversary [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Prepayment penalty percentage | 3.00% | ||||||||
Mortgage Loans [Member] | The Whitehall [Member] | Prepayment Penalty Second Anniversary [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Prepayment penalty percentage | 2.00% | ||||||||
Mortgage Loans [Member] | The Whitehall [Member] | Prepayment Penalty After Third Anniversary [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Prepayment penalty percentage | 1.00% |
Debt - Schedule of Future Mortg
Debt - Schedule of Future Mortgage Debt Maturities (Detail) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Oct. 12, 2016 | Jul. 07, 2015 |
Debt Disclosure [Abstract] | ||||
For the year ending: December 31, 2018 | $ 22,039,201 | |||
December 31, 2019 | 51,290,912 | |||
December 31, 2020 | 7,232,596 | |||
December 31, 2021 | 28,919,110 | |||
December 31, 2022 | 7,018,848 | |||
December 31, 2023 and thereafter | 182,551,105 | |||
Total future maturities | $ 299,051,772 | $ 284,542,043 | $ 20,500,000 | $ 18,500,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 12 Months Ended | |||||
Dec. 31, 2017USD ($)ft²shares | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 29, 2016USD ($) | Jan. 01, 2016USD ($) | Aug. 07, 2014USD ($) | |
Operating Leased Assets [Line Items] | ||||||
Franchise termination fee recognized | $ 351,800 | |||||
Maximum amount allocated to purchase common stock under ESOP | $ 5,000,000 | $ 5,000,000 | ||||
Total number of ESOP shares | shares | 33,832 | |||||
Fair value of ESOP released from suspense account and recognized compensation cost | $ 221,438 | |||||
Number of non committed, unearned ESOP shares | shares | 648,668 | |||||
Fair value of unallocated ESOP shares | $ 4,183,908 | |||||
Number of ESOP shares allocated | shares | 9,473 | |||||
Number of ESOP shares committed to be released | shares | 24,359 | |||||
ESOP [Member] | ||||||
Operating Leased Assets [Line Items] | ||||||
Number of common stock, shares purchased | shares | 682,500 | |||||
Purchased common stock, value | $ 4,900,000 | |||||
Crowne Plaza Houston Downtown [Member] | ||||||
Operating Leased Assets [Line Items] | ||||||
Franchise agreement expire date | Apr. 12, 2016 | |||||
Hilton Savannah DeSoto [Member] | ||||||
Operating Leased Assets [Line Items] | ||||||
Franchise agreement expire date | Jul. 31, 2017 | |||||
Hilton Wilmington Riverside [Member] | ||||||
Operating Leased Assets [Line Items] | ||||||
Monthly contribution of room revenues | 4.00% | |||||
Restricted cash reserve | Amount equal to 1 / 12 of the annual real estate taxes due for the properties | |||||
The DeSoto [Member] | ||||||
Operating Leased Assets [Line Items] | ||||||
Monthly contribution of room revenues | 4.00% | |||||
Restricted cash reserve | Amount equal to 1 / 12 of the annual real estate taxes due for the properties | |||||
DoubleTree by Hilton Brownstone-University [Member] | ||||||
Operating Leased Assets [Line Items] | ||||||
Monthly contribution of room revenues | 4.00% | |||||
Restricted cash reserve | Amount equal to 1 / 12 of the annual real estate taxes due for the properties | |||||
Double Tree by Hilton Jacksonville Riverside [Member] | ||||||
Operating Leased Assets [Line Items] | ||||||
Monthly contribution of room revenues | 4.00% | |||||
Restricted cash reserve | Amount equal to 1 / 12 of the annual real estate taxes due for the properties | |||||
DoubleTree Resort by Hilton Hollywood Beach [Member] | ||||||
Operating Leased Assets [Line Items] | ||||||
Monthly contribution of room revenues | 4.00% | |||||
Restricted cash reserve | Amount equal to 1 / 12 of the annual real estate taxes due for the properties | |||||
Sheraton Louisville Riverside [Member] | ||||||
Operating Leased Assets [Line Items] | ||||||
Restricted cash reserve | Amount equal to 1 / 12 of the annual real estate taxes due for the properties | |||||
Whitehall [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% | |||||
Georgian Terrace [Member] | ||||||
Operating Leased Assets [Line Items] | ||||||
Monthly contribution of room revenues | 4.00% | |||||
Restricted cash reserve | Amount equal to 1 / 12 of the annual real estate taxes due for the properties | |||||
Double Tree By Hilton Philadelphia Airport [Member] | ||||||
Operating Leased Assets [Line Items] | ||||||
Monthly contribution of room revenues | 4.00% | |||||
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 | 2018-03 | |||||
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 | 2030-10 | |||||
Maximum [Member] | ESOP [Member] | ||||||
Operating Leased Assets [Line Items] | ||||||
Borrowed amount | $ 5,000,000 | |||||
Chesapeake Hospitality [Member] | ||||||
Operating Leased Assets [Line Items] | ||||||
Expiry date of master management agreement | between January 1, 2020 and January 30, 2022, and may be extended for up to two additional periods of five years each subject to the approval of both parties. | |||||
Williamsburg Virginia [Member] | ||||||
Operating Leased Assets [Line Items] | ||||||
Area of commercial space leased | ft² | 5,216 | |||||
Rent expense | $ 90,208 | $ 91,003 | $ 83,651 | |||
Commencement date of agreement | Sep. 1, 2009 | |||||
Lease renewable expiration date | Aug. 31, 2018 | |||||
Hyde Resort and Residences in Hollywood Beach, Florida [Member] | ||||||
Operating Leased Assets [Line Items] | ||||||
Operating lease, expiring date | Feb. 28, 2037 | |||||
Rent expense | $ 220,000 | |||||
Lease agreement | 20 years | |||||
Operating lease monthly payments | $ 20,000 | |||||
Hilton Savannah DeSoto [Member] | ||||||
Operating Leased Assets [Line Items] | ||||||
Area of commercial space leased | ft² | 2,086 | |||||
Operating lease, expiring date | Oct. 31, 2006 | |||||
Duration period under renewal option second | 5 years | |||||
Expiration date one under renewal option second | Oct. 31, 2011 | |||||
Expiration date two under renewal option second | Oct. 31, 2016 | |||||
Expiration date three under renewal option second | Oct. 31, 2021 | |||||
Rent expense | $ 72,984 | 72,984 | 65,054 | |||
Doubletree By Hilton Raleigh Brownstone - University [Member] | ||||||
Operating Leased Assets [Line Items] | ||||||
Duration of operating lease term | 50 years | |||||
Operating lease, expiring date | Aug. 31, 2016 | |||||
Duration period under renewal option second | 10 years | |||||
Expiration date one under renewal option second | Aug. 31, 2026 | |||||
Expiration date two under renewal option second | Aug. 31, 2036 | |||||
Expiration date three under renewal option second | Aug. 31, 2046 | |||||
Rent expense | $ 116,791 | 95,482 | 95,482 | |||
Land leased under second amendment dated | Apr. 28, 1998 | |||||
Land lease originally dated | May 25, 1966 | |||||
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 | Jul. 31, 2019 | |||||
Rent expense | $ 2,602 | $ 2,602 | $ 2,602 | |||
Lease agreement | 5 years | |||||
Commencement date of agreement | Jul. 31, 2009 | |||||
Annual payment | $ 2,432 | |||||
Additional renewal of agreement | 5 years | |||||
Furniture, Fixtures and Equipment [Member] | ||||||
Operating Leased Assets [Line Items] | ||||||
Financing arrangement expiration date | 2018-02 | |||||
Financing arrangement expiration date | 2019-10 | |||||
Six Year Operating Lease Property [Member] | Hilton Savannah DeSoto [Member] | ||||||
Operating Leased Assets [Line Items] | ||||||
Duration of operating lease term | 6 years | |||||
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 | Jul. 31, 2086 | |||||
Rental income recognized during period | $ 0 | |||||
Original lump sum rent payment received | $ 990 |
Commitments and Contingencies54
Commitments and Contingencies - Schedule of Minimum Future Lease Payments (Detail) | Dec. 31, 2017USD ($) |
Operating Leases Future Minimum Payments Due [Abstract] | |
For the year ending: December 31, 2018 | $ 568,112 |
December 31, 2019 | 466,465 |
December 31, 2020 | 351,464 |
December 31, 2021 | 351,464 |
December 31, 2022 | 351,464 |
December 31, 2023 and thereafter | 3,920,165 |
Total | $ 6,009,134 |
Preferred Stock and Units - Add
Preferred Stock and Units - Additional Information (Detail) - USD ($) | Aug. 23, 2016 | Oct. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 15, 2017 | Sep. 30, 2016 | Nov. 21, 2014 |
Preferred Units [Line Items] | |||||||
Preferred stock, shares authorized | 11,000,000 | 11,000,000 | |||||
Proceeds from the sale of preferred stock, net | $ 30,488,660 | $ 37,766,531 | |||||
7.0% Senior Unsecured Notes [Member] | |||||||
Preferred Units [Line Items] | |||||||
Interest rate on loan | 7.00% | 7.00% | |||||
8.0% Senior Unsecured Notes [Member] | |||||||
Preferred Units [Line Items] | |||||||
Interest rate on loan | 8.00% | ||||||
Sotherly Hotels LP [Member] | |||||||
Preferred Units [Line Items] | |||||||
Proceeds from sale of preferred units, net | $ 30,488,660 | $ 37,766,531 | |||||
Sotherly Hotels LP [Member] | 7.0% Senior Unsecured Notes [Member] | |||||||
Preferred Units [Line Items] | |||||||
Interest rate on loan | 7.00% | ||||||
Sotherly Hotels LP [Member] | 8.0% Senior Unsecured Notes [Member] | |||||||
Preferred Units [Line Items] | |||||||
Interest rate on loan | 8.00% | ||||||
Sotherly Hotels LP [Member] | 7.875% Series C Cumulative Redeemable Perpetual Preferred Units [Member] | |||||||
Preferred Units [Line Items] | |||||||
Operating partnership preferred partnership units issued | 1,300,000 | ||||||
Preferred units, dividend rate percentage | 7.875% | 7.875% | 7.875% | ||||
Proceeds from sale of preferred units, net | $ 30,500,000 | ||||||
Preferred units, liquidation preference per units | $ 25 | $ 25 | $ 25 | ||||
Sotherly Hotels LP [Member] | 8% Series B Cumulative Redeemable Perpetual Preferred Units [Member] | |||||||
Preferred Units [Line Items] | |||||||
Operating partnership preferred partnership units issued | 1,610,000 | ||||||
Preferred units, par value | $ 0.01 | ||||||
Preferred units, dividend rate percentage | 8.00% | 8.00% | 8.00% | ||||
Proceeds from sale of preferred units, net | $ 37,800,000 | ||||||
Preferred units, liquidation preference per units | $ 25 | $ 25 | $ 25 | ||||
8% Series B Cumulative Redeemable Perpetual Preferred Stock [Member] | |||||||
Preferred Units [Line Items] | |||||||
Preferred stock, shares authorized | 11,000,000 | 11,000,000 | |||||
Preferred stock, shares issued | 1,610,000 | 1,610,000 | 1,610,000 | ||||
Preferred stock, shares outstanding | 1,610,000 | 1,610,000 | |||||
Preferred stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Proceeds from the sale of preferred stock, net | $ 37,800,000 | ||||||
Preferred stock, dividend rate percentage | 8.00% | 8.00% | |||||
Preferred stock, liquidation preference per share | $ 25 | $ 25 | |||||
7.875% Series C Cumulative Redeemable Perpetual Preferred Stock [Member] | |||||||
Preferred Units [Line Items] | |||||||
Preferred stock, shares authorized | 11,000,000 | 11,000,000 | |||||
Preferred stock, shares issued | 1,300,000 | 1,300,000 | 0 | ||||
Preferred stock, shares outstanding | 1,300,000 | 0 | |||||
Preferred stock, par value | $ 0.01 | $ 0.01 | |||||
Proceeds from the sale of preferred stock, net | $ 30,500,000 | ||||||
Preferred stock, dividend rate percentage | 7.875% | 7.875% | |||||
Preferred stock, liquidation preference per share | $ 25 | $ 25 |
Preferred Stock and Units - Qua
Preferred Stock and Units - Quarterly Distributions Declared and Payable by Operating Partnership (Detail) - Sotherly Hotels LP [Member] - $ / shares | 1 Months Ended | 3 Months Ended | |||||
Sep. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
8% Series B Cumulative Redeemable Perpetual Preferred Units [Member] | |||||||
Class of Stock [Line Items] | |||||||
Preferred dividend declared and payable | $ 0.2111 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | |
7.875% Series C Cumulative Redeemable Perpetual Preferred Units [Member] | |||||||
Class of Stock [Line Items] | |||||||
Preferred dividend declared and payable | $ 0.4430 |
Common Stock and Units - Additi
Common Stock and Units - Additional Information (Detail) | Feb. 15, 2017shares | Dec. 02, 2016USD ($)$ / shares | Feb. 02, 2016shares | Feb. 01, 2016shares | Sep. 16, 2015shares | Jul. 17, 2015USD ($)shares | Jul. 02, 2015USD ($) | May 01, 2015shares | Apr. 01, 2015shares | Jan. 29, 2015shares | Jun. 30, 2015USD ($)shares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)shares | Jul. 01, 2015shares |
Class of Stock [Line Items] | |||||||||||||||
Common stock, shares authorized | 49,000,000 | 49,000,000 | |||||||||||||
Common stock, par value | $ / shares | $ 0.01 | $ 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. | ||||||||||||||
Repurchased common stock, value | $ | $ 2,731,041 | $ 3,164,536 | |||||||||||||
Number of common stock shares repurchased | 401,720 | 481,100 | |||||||||||||
Common stock, shares issued | 435,000 | 14,078,831 | 14,468,551 | 3,000,000 | |||||||||||
Proceeds from sale of common stock | $ | $ 2,800,000 | $ 19,800,000 | $ 700,000 | $ 23,250,818 | |||||||||||
Common stock, shares outstanding | 14,078,831 | 14,468,551 | |||||||||||||
Common stock exchange ratio | 1 | ||||||||||||||
Operating Partnership common units not owned | 1,778,140 | 1,778,140 | |||||||||||||
Common Stock [Member] | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Repurchased common stock, value | $ | $ 4,017 | $ 4,811 | |||||||||||||
Number of common stock shares repurchased | 401,720 | 481,100 | |||||||||||||
Restricted shares issued | 12,000 | 12,000 | 9,750 | ||||||||||||
Conversion of units in Operating Partnership to shares of common stock, shares | 422,687 | 200,000 | 50,000 | 100,000 | 422,687 | 350,000 | |||||||||
Common stock, shares issued | 98,682 | ||||||||||||||
Shares issued | 98,682 | 98,682 | |||||||||||||
Common Stock [Member] | Executive Officer [Member] | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Non-restricted shares issued | 22,000 | 26,350 | |||||||||||||
Common Stock [Member] | Director [Member] | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Restricted shares issued | 12,000 | 9,750 | |||||||||||||
Non-restricted shares issued | 2,250 | ||||||||||||||
Sotherly Hotels LP [Member] | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Repurchased common units, number of units | 401,720 | 481,100 | |||||||||||||
Repurchased common units | $ | $ 2,731,041 | $ 3,164,536 | |||||||||||||
Operating Partnership common units outstanding | 15,856,971 | 16,246,691 | |||||||||||||
Fair market value | $ | $ 11,500,000 | $ 12,100,000 | |||||||||||||
Sotherly Hotels LP [Member] | Common Stock [Member] | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Number of issued unit in Operating Partnership | 12,000 | 36,250 | 36,100 | ||||||||||||
Restricted shares issued | 12,000 | ||||||||||||||
Maximum [Member] | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Repurchased common stock, value | $ | $ 10,000,000 |
Common Stock and Units - Quarte
Common Stock and Units - Quarterly Distributions Declared and Payable by Operating Partnership (Detail) - $ / shares | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 |
Sotherly Hotels LP [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Dividends payable amount per share | $ 0.110 | $ 0.110 | $ 0.105 | $ 0.100 | $ 0.095 | $ 0.095 | $ 0.090 | $ 0.085 | $ 0.080 | $ 0.080 | $ 0.075 | $ 0.070 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | Feb. 01, 2016shares | Sep. 16, 2015shares | Apr. 01, 2015shares | Jul. 31, 2015USD ($) | Dec. 31, 2017USD ($)Membersshares | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Related Party Transaction [Line Items] | |||||||
Accounts receivable - affiliate | $ 394,026 | $ 4,175 | |||||
DoubleTree Resort by Hilton Hollywood Beach [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of ownership interest | 100.00% | 100.00% | |||||
Percentage of operating partnership owned | 25.00% | ||||||
Chesapeake Hospitality [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Number of former members | Members | 2 | ||||||
Company's outstanding common stock owned by members of Chesapeake Hospitality | 10.50% | ||||||
Operating Partnership units owned by members of Chesapeake Hospitality | shares | 652,326 | ||||||
Company's common stock shares owned by members of Chesapeake Hospitality | shares | 1,481,833 | ||||||
Accounts receivable - affiliate | $ 113,669 | $ 133,711 | |||||
Agreement term | 5 years | ||||||
Base management fees earned by related party | $ 4,044,059 | 3,828,896 | $ 3,371,668 | ||||
Incentive management fees earned by related party | 126,918 | 36,466 | 79,555 | ||||
Employee medical benefits paid | $ 4,801,599 | 4,606,967 | 4,541,546 | ||||
Expiry date of management agreement | Aug. 31, 2017 | ||||||
Management fee | 3.00% | ||||||
Base management fees | $ 401,954 | ||||||
Chesapeake Hospitality [Member] | Fiscal Year 2017 [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of management fee due | 2.65% | ||||||
Chesapeake Hospitality [Member] | Fiscal Year 2017 and Thereafter [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of management fee due | 2.50% | ||||||
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] | Whitehall and Georgian Terrace Hotel [Member] | Fiscal Year 2015 [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of management fee due | 2.00% | ||||||
Chesapeake Hospitality [Member] | Whitehall and Georgian Terrace Hotel [Member] | Fiscal Year 2016 [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of management fee due | 2.25% | ||||||
Chesapeake Hospitality [Member] | Whitehall and Georgian Terrace Hotel [Member] | Fiscal Year Thereafter [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of management fee due | 2.50% | ||||||
MHI Hospitality TRS II, LLC [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Asset management fee as percentage of revenue | 1.50% | ||||||
Asset management fee paid | $ 200,976 | ||||||
Sotherly Foundation [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Amount loaned to related party | 180,000 | ||||||
Loan receivable outstanding | $ 40,000 | 80,000 | |||||
Immediate Family Members of Chief Executive Officer [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Total compensation for related parties | 304,737 | 291,508 | 272,022 | ||||
Director [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Conversion of units in Operating Partnership to shares of common stock, shares | shares | 322,687 | 200,000 | |||||
Partnership controlled by Chief Executive Officer [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Business-related air travel expense reimbursed to partnership | $ 178,345 | $ 123,866 | $ 138,025 | ||||
Previous Director [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Conversion of units in Operating Partnership to shares of common stock, shares | shares | 100,000 | 100,000 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Detail) - USD ($) | 2 Months Ended | 12 Months Ended | ||||
Feb. 28, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 29, 2016 | Jan. 01, 2016 | |
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 | $ 67,273 | $ 63,944 | $ 40,768 | |||
Maximum amount allocated to purchase common stock under ESOP | $ 5,000,000 | $ 5,000,000 | ||||
Number of common stock, shares purchased | 682,500 | |||||
Purchased common stock, value | $ 4,900,000 | $ 4,874,758 |
Retirement Plans - Summary of S
Retirement Plans - Summary of Shares Allocations are Accounted For Fair Value on The Date of Allocations (Detail) | Dec. 31, 2017USD ($)shares |
Compensation And Retirement Disclosure [Abstract] | |
Number of ESOP shares allocated | shares | 9,473 |
Number of ESOP shares committed to be released | shares | 24,359 |
Total number of ESOP allocated and committed-to-be-released | shares | 33,832 |
Number of non committed, unearned ESOP shares | shares | 648,668 |
Total number of ESOP shares | shares | 682,500 |
Fair value of ESOP allocated shares | $ | $ 64,321 |
Fair value of ESOP Committed-to-be released shares | $ | 157,117 |
Total fair value of ESOP allocated and committed-to-be-released | $ | 221,438 |
Fair value of ESOP unallocated shares | $ | 4,183,908 |
Total fair value of ESOP shares | $ | $ 4,405,346 |
Unconsolidated Joint Venture -
Unconsolidated Joint Venture - Additional Information (Detail) | Dec. 31, 2017 | Dec. 31, 2016 | Jul. 31, 2015 |
DoubleTree Resort by Hilton Hollywood Beach [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Percentage of direct ownership | 100.00% | 100.00% | |
Percentage of operating partnership owned | 25.00% | ||
Carlyle [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Percentage of indirect interest owned | 75.00% |
Unconsolidated Joint Venture 63
Unconsolidated Joint Venture - Summarized Financial Information of Investment (Detail) - DoubleTree Resort by Hilton Hollywood Beach [Member] | 7 Months Ended |
Jul. 31, 2015USD ($) | |
Revenue | |
Rooms department | $ 10,605,941 |
Food and beverage department | 1,911,950 |
Other operating departments | 880,564 |
Total revenue | 13,398,455 |
Hotel operating expenses | |
Rooms department | 2,062,515 |
Food and beverage department | 1,442,139 |
Other operating departments | 388,087 |
Indirect | 4,774,322 |
Total hotel operating expenses | 8,667,063 |
Depreciation and amortization | 1,060,339 |
General and administrative | 252,565 |
Total operating expenses | 9,979,967 |
Operating income | 3,418,488 |
Interest expense | (1,516,433) |
Net income | $ 1,902,055 |
Indirect Hotel Operating Expe64
Indirect Hotel Operating Expenses - Summary of Indirect Hotel Operating Expenses (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Component Of Operating Cost And Expense [Line Items] | |||
Total indirect hotel operating expenses | $ 57,612,203 | $ 57,736,937 | $ 52,067,947 |
Sales and Marketing [Member] | |||
Component Of Operating Cost And Expense [Line Items] | |||
Total indirect hotel operating expenses | 13,843,578 | 13,537,887 | 11,259,332 |
General and Administrative [Member] | |||
Component Of Operating Cost And Expense [Line Items] | |||
Total indirect hotel operating expenses | 12,949,596 | 12,135,835 | 11,327,182 |
Repairs and Maintenance [Member] | |||
Component Of Operating Cost And Expense [Line Items] | |||
Total indirect hotel operating expenses | 6,828,963 | 7,314,178 | 6,903,226 |
Utilities [Member] | |||
Component Of Operating Cost And Expense [Line Items] | |||
Total indirect hotel operating expenses | 5,820,589 | 6,429,686 | 6,115,356 |
Property Taxes [Member] | |||
Component Of Operating Cost And Expense [Line Items] | |||
Total indirect hotel operating expenses | 5,729,464 | 5,983,280 | 5,110,659 |
Management Fees, Including Incentive [Member] | |||
Component Of Operating Cost And Expense [Line Items] | |||
Total indirect hotel operating expenses | 4,170,977 | 3,865,362 | 3,490,586 |
Franchise Fees [Member] | |||
Component Of Operating Cost And Expense [Line Items] | |||
Total indirect hotel operating expenses | 3,877,231 | 4,091,729 | 4,016,083 |
Insurance [Member] | |||
Component Of Operating Cost And Expense [Line Items] | |||
Total indirect hotel operating expenses | 2,446,269 | 2,594,783 | 2,305,966 |
Information and Telecommunications [Member] | |||
Component Of Operating Cost And Expense [Line Items] | |||
Total indirect hotel operating expenses | 1,647,728 | 1,679,603 | 1,454,219 |
Other [Member] | |||
Component Of Operating Cost And Expense [Line Items] | |||
Total indirect hotel operating expenses | $ 297,808 | $ 104,594 | $ 85,338 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax (Benefit) Provision (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||
State | $ 239,582 | $ 191,332 | $ 444,538 |
Total | 239,582 | 191,332 | 444,538 |
Deferred: | |||
Federal | 1,661,153 | (1,294,408) | (1,510,726) |
State | (162,931) | (264,558) | (269,845) |
Total | 1,498,222 | (1,558,966) | (1,780,571) |
Income tax (benefit) provision | $ 1,737,804 | $ (1,367,634) | $ (1,336,033) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Federal Income Tax Provision (Benefit) (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Statutory federal income tax provision (benefit) | $ 600,880 | $ (158,859) | $ 1,705,610 |
Effect of non-taxable REIT income (loss) | (1,621,526) | (1,135,549) | (2,866,950) |
Effect of change in federal income tax rate on net deferred tax assets | 2,681,800 | ||
State income tax provision (benefit) | 76,650 | (73,226) | (174,693) |
Income tax (benefit) provision | $ 1,737,804 | $ (1,367,634) | $ (1,336,033) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | ||
Deferred tax asset | $ 5,451,118 | $ 6,949,340 |
Accumulated net operating losses | $ 4,900,000 | |
Loss carryforwards, expired | 2,028 | |
Deferred tax asset nondeductible accrued expenses | $ 600,000 | 600,000 |
Reduction in deferred tax assets due to change in federal income tax rate | 2,700,000 | |
TRS Lessee [Member] | ||
Income Taxes [Line Items] | ||
Accumulated net operating losses | $ 4,900,000 | $ 6,000,000 |
Income (Loss) Per Share and P68
Income (Loss) Per Share and Per Unit - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017shares | |
Earnings Per Share [Line Items] | |
Number of non-committed, unearned ESOP shares | 648,668 |
ESOP [Member] | |
Earnings Per Share [Line Items] | |
Number of ESOP units | 0 |
Income (Loss) Per Share and P69
Income (Loss) Per Share and Per Unit - Computation of Basic and Diluted Net Income (Loss) Per Share (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator | |||||||||||
Net income (loss) available to common stockholders for basic and diluted computation | $ (3,936,522) | $ (1,550,555) | $ 296,850 | $ 1,851,090 | $ (746,140) | $ (1,716,234) | $ 1,761,106 | $ 483,095 | $ (3,339,136) | $ (218,173) | $ 5,356,666 |
Denominator | |||||||||||
Weighted average number of common shares outstanding | 14,443,674 | 14,896,994 | 12,541,117 | ||||||||
Weighted average number of Unearned ESOP Shares | (614,574) | ||||||||||
Total weighted average number of common shares outstanding for basic and diluted computation | 13,829,100 | 14,896,994 | 12,541,117 | ||||||||
Basic and diluted net income (loss) per share | $ (0.29) | $ (0.11) | $ 0.02 | $ 0.13 | $ (0.05) | $ (0.11) | $ 0.12 | $ 0.03 | $ (0.24) | $ (0.01) | $ 0.43 |
Income (Loss) Per Share and P70
Income (Loss) Per Share and Per Unit - Computation of Basic and Diluted Income (Loss) Per Unit (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items] | |||||||||||
Net income (loss) available to common unitholders for basic computation | $ (4,422,903) | $ (1,741,000) | $ 310,795 | $ 2,100,958 | $ (879,084) | $ (1,889,080) | $ 1,977,550 | $ 545,874 | |||
Earnings (loss) per unit attributable to operating partnership unitholders– basic and diluted | $ (0.27) | $ (0.11) | $ 0.02 | $ 0.13 | $ (0.05) | $ (0.11) | $ 0.12 | $ 0.03 | |||
Sotherly Hotels LP [Member] | |||||||||||
Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items] | |||||||||||
Net income (loss) available to common unitholders for basic computation | $ (3,752,150) | $ (244,740) | $ 6,397,653 | ||||||||
Weighted average number of units outstanding | 16,224,005 | 16,710,935 | 14,924,410 | ||||||||
Earnings (loss) per unit attributable to operating partnership unitholders– basic and diluted | $ (0.23) | $ (0.01) | $ 0.43 |
Quarterly Operating Results -71
Quarterly Operating Results - Unaudited - Quarterly Operating Results (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenue | $ 38,159,704 | $ 36,769,471 | $ 40,642,632 | $ 38,694,886 | $ 35,935,342 | $ 37,275,312 | $ 41,824,954 | $ 37,810,144 | $ 154,266,693 | $ 152,845,752 | $ 138,533,476 |
Total operating expenses | 35,339,712 | 34,595,193 | 35,178,717 | 32,989,182 | 33,026,914 | 33,539,913 | 34,645,809 | 33,025,990 | 138,102,805 | 134,238,626 | 123,203,426 |
Net operating income | 2,819,992 | 2,174,278 | 5,463,915 | 5,705,704 | 2,908,428 | 3,735,399 | 7,179,145 | 4,784,154 | 16,163,888 | 18,607,126 | 15,330,050 |
Net income (loss) | (3,056,262) | (936,000) | 1,135,719 | 2,886,032 | (74,084) | (1,549,191) | 1,977,550 | 545,874 | 29,489 | 900,149 | 6,397,653 |
Net income (loss) attributable to common shareholders | $ (3,936,522) | $ (1,550,555) | $ 296,850 | $ 1,851,090 | $ (746,140) | $ (1,716,234) | $ 1,761,106 | $ 483,095 | $ (3,339,136) | $ (218,173) | $ 5,356,666 |
Basic and diluted net income (loss) per share | $ (0.29) | $ (0.11) | $ 0.02 | $ 0.13 | $ (0.05) | $ (0.11) | $ 0.12 | $ 0.03 | $ (0.24) | $ (0.01) | $ 0.43 |
Net income (loss) available to common unitholders for basic computation | $ (4,422,903) | $ (1,741,000) | $ 310,795 | $ 2,100,958 | $ (879,084) | $ (1,889,080) | $ 1,977,550 | $ 545,874 | |||
Basic and diluted | $ (0.27) | $ (0.11) | $ 0.02 | $ 0.13 | $ (0.05) | $ (0.11) | $ 0.12 | $ 0.03 | |||
Earnings (loss) per unit attributable to operating partnership unitholders– basic and diluted | $ (0.27) | $ (0.11) | $ 0.02 | $ 0.13 | $ (0.05) | $ (0.11) | $ 0.12 | $ 0.03 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) | Mar. 01, 2018USD ($)Room | Feb. 26, 2018USD ($) | Feb. 12, 2018USD ($) | Feb. 01, 2018USD ($) | Jan. 30, 2018$ / shares | Jan. 11, 2018$ / shares | Oct. 12, 2016USD ($) | Jul. 07, 2015USD ($) | Dec. 31, 2017USD ($)Room | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Subsequent Event [Line Items] | |||||||||||
Proceeds from mortgage loans | $ 15,000,000 | $ 2,000,000 | $ 40,500,000 | $ 102,700,000 | $ 127,000,000 | ||||||
Amortization Period | 18 years | 25 years | |||||||||
Excess Interest rate over LIBOR on mortgage debt | 3.50% | 3.50% | |||||||||
Rooms in hotel | Room | 2,838 | ||||||||||
Hyatt Centric Arlington [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Transaction costs | $ 100,000 | ||||||||||
Hilton Wilmington Riverside [Member] | Mortgage Loans [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Proceeds from mortgage loans | $ 30,000,000 | ||||||||||
Amortization Period | 25 years | ||||||||||
The Whitehall [Member] | Mortgage Loans [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Proceeds from mortgage loans | $ 15,000,000 | ||||||||||
Amortization Period | 18 years | ||||||||||
Excess Interest rate over LIBOR on mortgage debt | 3.50% | ||||||||||
Subsequent Event [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Dividend paid | $ / shares | $ 0.11 | ||||||||||
Dividend record date | Mar. 15, 2018 | Dec. 15, 2017 | |||||||||
Dividend distributed | $ / shares | $ 0.115 | ||||||||||
Dividend payment date | Apr. 11, 2018 | ||||||||||
Subsequent Event [Member] | Hyatt Centric Arlington [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Mortgage loans | $ 57,000,000 | ||||||||||
Rooms in hotel | Room | 318 | ||||||||||
Hotel property aggregate purchase price | $ 79,700,000 | ||||||||||
Subsequent Event [Member] | 7.25% Senior Unsecured Notes due 2021 [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Proceeds from sale and issuance of unsecured notes | $ 25,000,000 | ||||||||||
Interest rate | 7.25% | ||||||||||
Proceeds from unsecured notes net of estimated expenses | $ 23,300,000 | ||||||||||
Subsequent Event [Member] | First Promissory Note (“Note A”) [Member] | Hyatt Centric Arlington [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Amortization Period | 25 years | ||||||||||
Mortgage loans | $ 50,000,000 | ||||||||||
Debt instrument maturity term | 3 years | ||||||||||
Extended maturity period | two 1-year | ||||||||||
Subsequent Event [Member] | First Promissory Note (“Note A”) [Member] | Hyatt Centric Arlington [Member] | 1-Month LIBOR | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Excess Interest rate over LIBOR on mortgage debt | 3.00% | ||||||||||
Subsequent Event [Member] | Second Promissory Note (“Note B”) [Member] | Hyatt Centric Arlington [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Mortgage loans | $ 7,000,000 | ||||||||||
Debt instrument maturity term | 1 year | ||||||||||
Extended maturity period | two 1-year | ||||||||||
Subsequent Event [Member] | Second Promissory Note (“Note B”) [Member] | Hyatt Centric Arlington [Member] | 1-Month LIBOR | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Excess Interest rate over LIBOR on mortgage debt | 5.00% | ||||||||||
Subsequent Event [Member] | Hilton Wilmington Riverside [Member] | Mortgage Loans [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Additional proceeds on mortgage loan | $ 5,000,000 | ||||||||||
Subsequent Event [Member] | The Whitehall [Member] | Mortgage Loans [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Proceeds from mortgage loans | $ 15,000,000 | ||||||||||
Extended maturity date | Feb. 26, 2023 | ||||||||||
Amortization Period | 25 years | ||||||||||
Subsequent Event [Member] | 7.875% Series C Cumulative Redeemable Perpetual Preferred Stock [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Dividend record date | Mar. 29, 2018 | ||||||||||
Dividend payment date | Apr. 16, 2018 | ||||||||||
Preferred dividend distributed | $ / shares | $ 0.4922 | ||||||||||
Subsequent Event [Member] | 8% Series B Cumulative Redeemable Perpetual Preferred Stock [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Dividend record date | Mar. 29, 2018 | ||||||||||
Dividend payment date | Apr. 16, 2018 | ||||||||||
Preferred dividend distributed | $ / shares | $ 0.50 |
Schedule III - Real Estate an73
Schedule III - Real Estate and Accumulated Depreciation - Real Estate and Accumulated Depreciation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | $ 299,052 | ||
Initial Costs, Land | 57,818 | ||
Initial Costs, Building & Improvements | 239,967 | ||
Costs Capitalized Subsequent to Acquisition, Land | 1,686 | ||
Costs Capitalized Subsequent to Acquisition, Building & Improvements | 108,566 | ||
Gross Amount at End of Year, Land | 59,504 | ||
Gross Amount at End of Year, Building & Improvements | 348,533 | ||
Gross Amount at End of Year, Total | 408,037 | $ 402,189 | $ 393,630 |
Accumulated Depreciation & Impairment | $ (75,111) | ||
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 | $ 58,023 | ||
Initial Costs, Land | 4,153 | ||
Initial Costs, Building & Improvements | 9,670 | ||
Costs Capitalized Subsequent to Acquisition, Land | 320 | ||
Costs Capitalized Subsequent to Acquisition, Building & Improvements | 22,289 | ||
Gross Amount at End of Year, Land | 4,473 | ||
Gross Amount at End of Year, Building & Improvements | 31,959 | ||
Gross Amount at End of Year, Total | 36,432 | ||
Accumulated Depreciation & Impairment | $ (8,701) | ||
Date of Construction | 1,973 | ||
Date Acquired | 2,007 | ||
Crowne Plaza Tampa Westshore – Tampa, Florida [Member] | Minimum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 3 years | ||
Crowne Plaza Tampa Westshore – Tampa, Florida [Member] | Maximum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 39 years | ||
The DeSoto – Savannah, Georgia [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Description | The DeSoto – Savannah, Georgia | ||
Encumbrances | $ 34,646 | ||
Initial Costs, Land | 600 | ||
Initial Costs, Building & Improvements | 13,562 | ||
Costs Capitalized Subsequent to Acquisition, Land | 527 | ||
Costs Capitalized Subsequent to Acquisition, Building & Improvements | 17,334 | ||
Gross Amount at End of Year, Land | 1,127 | ||
Gross Amount at End of Year, Building & Improvements | 30,896 | ||
Gross Amount at End of Year, Total | 32,023 | ||
Accumulated Depreciation & Impairment | $ (9,166) | ||
Date of Construction | 1,968 | ||
Date Acquired | 2,004 | ||
The DeSoto – Savannah, Georgia [Member] | Minimum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 3 years | ||
The DeSoto – Savannah, Georgia [Member] | Maximum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 39 years | ||
DoubleTree by Hilton Jacksonville Riverfront – Jacksonville, Florida [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Description | DoubleTree by Hilton Jacksonville Riverfront – Jacksonville, Florida | ||
Encumbrances | $ 15,284 | ||
Initial Costs, Land | 7,090 | ||
Initial Costs, Building & Improvements | 14,604 | ||
Costs Capitalized Subsequent to Acquisition, Land | 111 | ||
Costs Capitalized Subsequent to Acquisition, Building & Improvements | 7,124 | ||
Gross Amount at End of Year, Land | 7,201 | ||
Gross Amount at End of Year, Building & Improvements | 21,728 | ||
Gross Amount at End of Year, Total | 28,929 | ||
Accumulated Depreciation & Impairment | $ (6,714) | ||
Date of Construction | 1,970 | ||
Date Acquired | 2,005 | ||
DoubleTree by Hilton Jacksonville Riverfront – Jacksonville, Florida [Member] | Minimum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 3 years | ||
DoubleTree by Hilton Jacksonville Riverfront – Jacksonville, Florida [Member] | Maximum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 39 years | ||
DoubleTree by Hilton Laurel – Laurel, Maryland [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Description | DoubleTree by Hilton Laurel – Laurel, Maryland | ||
Encumbrances | $ 35,295 | ||
Initial Costs, Land | 900 | ||
Initial Costs, Building & Improvements | 9,443 | ||
Costs Capitalized Subsequent to Acquisition, Land | 175 | ||
Costs Capitalized Subsequent to Acquisition, Building & Improvements | 5,746 | ||
Gross Amount at End of Year, Land | 1,075 | ||
Gross Amount at End of Year, Building & Improvements | 15,189 | ||
Gross Amount at End of Year, Total | 16,264 | ||
Accumulated Depreciation & Impairment | $ (4,431) | ||
Date of Construction | 1,985 | ||
Date Acquired | 2,004 | ||
DoubleTree by Hilton Laurel – Laurel, Maryland [Member] | Minimum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 3 years | ||
DoubleTree by Hilton Laurel – Laurel, Maryland [Member] | Maximum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 39 years | ||
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 | $ 9,133 | ||
Initial Costs, Land | 2,100 | ||
Initial Costs, Building & Improvements | 22,031 | ||
Costs Capitalized Subsequent to Acquisition, Land | 377 | ||
Costs Capitalized Subsequent to Acquisition, Building & Improvements | 5,725 | ||
Gross Amount at End of Year, Land | 2,477 | ||
Gross Amount at End of Year, Building & Improvements | 27,756 | ||
Gross Amount at End of Year, Total | 30,233 | ||
Accumulated Depreciation & Impairment | $ (9,205) | ||
Date of Construction | 1,972 | ||
Date Acquired | 2,004 | ||
DoubleTree by Hilton Philadelphia Airport – Philadelphia, Pennsylvania [Member] | Minimum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 3 years | ||
DoubleTree by Hilton Philadelphia Airport – Philadelphia, Pennsylvania [Member] | Maximum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 39 years | ||
DoubleTree by Hilton Raleigh Brownstone – University – Raleigh, North Carolina [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Description | DoubleTree by Hilton Raleigh Brownstone – University – Raleigh, North Carolina | ||
Encumbrances | $ 30,432 | ||
Initial Costs, Land | 815 | ||
Initial Costs, Building & Improvements | 7,416 | ||
Costs Capitalized Subsequent to Acquisition, Land | 211 | ||
Costs Capitalized Subsequent to Acquisition, Building & Improvements | 6,176 | ||
Gross Amount at End of Year, Land | 1,026 | ||
Gross Amount at End of Year, Building & Improvements | 13,592 | ||
Gross Amount at End of Year, Total | 14,618 | ||
Accumulated Depreciation & Impairment | $ (5,349) | ||
Date of Construction | 1,971 | ||
Date Acquired | 2,004 | ||
DoubleTree by Hilton Raleigh Brownstone – University – Raleigh, North Carolina [Member] | Minimum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 3 years | ||
DoubleTree by Hilton Raleigh Brownstone – University – Raleigh, North Carolina [Member] | Maximum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 39 years | ||
DoubleTree Resort by Hilton Hollywood Beach - Hollywood Beach Florida [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Description | DoubleTree Resort by Hilton Hollywood Beach - Hollywood Beach, Florida | ||
Encumbrances | $ 14,504 | ||
Initial Costs, Land | 22,865 | ||
Initial Costs, Building & Improvements | 67,660 | ||
Costs Capitalized Subsequent to Acquisition, Land | 394 | ||
Costs Capitalized Subsequent to Acquisition, Building & Improvements | 2,870 | ||
Gross Amount at End of Year, Land | 23,259 | ||
Gross Amount at End of Year, Building & Improvements | 70,530 | ||
Gross Amount at End of Year, Total | 93,789 | ||
Accumulated Depreciation & Impairment | $ (4,335) | ||
Date of Construction | 1,972 | ||
Date Acquired | 2,015 | ||
DoubleTree Resort by Hilton Hollywood Beach - Hollywood Beach Florida [Member] | Minimum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 3 years | ||
DoubleTree Resort by Hilton Hollywood Beach - Hollywood Beach Florida [Member] | Maximum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 39 years | ||
Georgian Terrace – Atlanta, Georgia [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Description | Georgian Terrace – Atlanta, Georgia | ||
Encumbrances | $ 45,033 | ||
Initial Costs, Land | 10,128 | ||
Initial Costs, Building & Improvements | 45,386 | ||
Costs Capitalized Subsequent to Acquisition, Land | (1,309) | ||
Costs Capitalized Subsequent to Acquisition, Building & Improvements | 5,555 | ||
Gross Amount at End of Year, Land | 8,819 | ||
Gross Amount at End of Year, Building & Improvements | 50,941 | ||
Gross Amount at End of Year, Total | 59,760 | ||
Accumulated Depreciation & Impairment | $ (5,267) | ||
Date of Construction | 1,911 | ||
Date Acquired | 2,014 | ||
Georgian Terrace – Atlanta, Georgia [Member] | Minimum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 3 years | ||
Georgian Terrace – Atlanta, Georgia [Member] | Maximum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 39 years | ||
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 | $ 30,000 | ||
Initial Costs, Land | 785 | ||
Initial Costs, Building & Improvements | 16,829 | ||
Costs Capitalized Subsequent to Acquisition, Land | 500 | ||
Costs Capitalized Subsequent to Acquisition, Building & Improvements | 15,775 | ||
Gross Amount at End of Year, Land | 1,285 | ||
Gross Amount at End of Year, Building & Improvements | 32,604 | ||
Gross Amount at End of Year, Total | 33,889 | ||
Accumulated Depreciation & Impairment | $ (13,043) | ||
Date of Construction | 1,970 | ||
Date Acquired | 2,004 | ||
Hilton Wilmington Riverside – Wilmington, North Carolina [Member] | Minimum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 3 years | ||
Hilton Wilmington Riverside – Wilmington, North Carolina [Member] | Maximum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 39 years | ||
Sheraton Louisville Riverside – Jeffersonville, Indiana [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Description | Sheraton Louisville Riverside – Jeffersonville, Indiana | ||
Encumbrances | $ 11,702 | ||
Initial Costs, Land | 782 | ||
Initial Costs, Building & Improvements | 6,891 | ||
Costs Capitalized Subsequent to Acquisition, Land | 274 | ||
Costs Capitalized Subsequent to Acquisition, Building & Improvements | 14,613 | ||
Gross Amount at End of Year, Land | 1,056 | ||
Gross Amount at End of Year, Building & Improvements | 21,504 | ||
Gross Amount at End of Year, Total | 22,560 | ||
Accumulated Depreciation & Impairment | $ (5,696) | ||
Date of Construction | 1,972 | ||
Date Acquired | 2,006 | ||
Sheraton Louisville Riverside – Jeffersonville, Indiana [Member] | Minimum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 3 years | ||
Sheraton Louisville Riverside – Jeffersonville, Indiana [Member] | Maximum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 39 years | ||
The Whitehall – Houston, Texas [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Description | The Whitehall – Houston, Texas | ||
Encumbrances | $ 15,000 | ||
Initial Costs, Land | 7,374 | ||
Initial Costs, Building & Improvements | 22,185 | ||
Costs Capitalized Subsequent to Acquisition, Land | 106 | ||
Costs Capitalized Subsequent to Acquisition, Building & Improvements | 5,359 | ||
Gross Amount at End of Year, Land | 7,480 | ||
Gross Amount at End of Year, Building & Improvements | 27,544 | ||
Gross Amount at End of Year, Total | 35,024 | ||
Accumulated Depreciation & Impairment | $ (3,103) | ||
Date of Construction | 1,963 | ||
Date Acquired | 2,013 | ||
The Whitehall – Houston, Texas [Member] | Minimum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 3 years | ||
The Whitehall – Houston, Texas [Member] | Maximum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 39 years | ||
The Hyde Resort [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Description | The Hyde Resort | ||
Initial Costs, Land | $ 226 | ||
Initial Costs, Building & Improvements | 4,290 | ||
Gross Amount at End of Year, Land | 226 | ||
Gross Amount at End of Year, Building & Improvements | 4,290 | ||
Gross Amount at End of Year, Total | 4,516 | ||
Accumulated Depreciation & Impairment | $ (101) | ||
Date of Construction | 2,016 | ||
Date Acquired | 2,017 | ||
The Hyde Resort [Member] | Minimum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 3 years | ||
The Hyde Resort [Member] | Maximum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 39 years |
Schedule III - Real Estate an74
Schedule III - Real Estate and Accumulated Depreciation - Real Estate and Accumulated Depreciation (Parenthetical) (Detail) $ in Millions | Dec. 31, 2017USD ($) |
Real Estate And Accumulated Depreciation Disclosure [Abstract] | |
Aggregate cost of our real estate assets for federal income tax | $ 398.3 |
Schedule III - Real Estate an75
Schedule III - Real Estate and Accumulated Depreciation - Reconciliation of Real Estate and Accumulated Depreciation (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Real Estate | |||
Beginning Balance | $ 402,189,000 | $ 393,630,000 | |
Acquisitions | 4,516,000 | ||
Improvements | 13,713,000 | 9,473,000 | |
Disposal of Assets | (12,381,000) | (914,000) | |
Ending Balance | 408,037,000 | 402,189,000 | $ 393,630,000 |
Reconciliation of Accumulated Depreciation | |||
Beginning Balance | 68,506,000 | 62,041,000 | |
Current Expense | 9,933,000 | 7,018,000 | |
Impairment | 0 | 0 | 500,000 |
Disposal of Assets | (3,328,000) | (553,000) | |
Ending Balance | $ 75,111,000 | $ 68,506,000 | $ 62,041,000 |