Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 25, 2023 | |
Cover [Abstract] | ||
Entity Registrant Name | APPLE HOSPITALITY REIT, INC. | |
Trading Symbol | APLE | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 229,013,349 | |
Amendment Flag | false | |
Entity Central Index Key | 0001418121 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-37389 | |
Entity Incorporation, State or Country Code | VA | |
Entity Tax Identification Number | 26-1379210 | |
Entity Address, Address Line One | 814 East Main Street | |
Entity Address, City or Town | Richmond | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 23219 | |
City Area Code | 804 | |
Local Phone Number | 344-8121 | |
Title of 12(b) Security | Common Shares, no par value | |
Security Exchange Name | NYSE | |
Entity Interactive Data Current | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Investment in real estate, net of accumulated depreciation and amortization of $1,537,998 and $1,492,097, respectively | $ 4,583,497 | $ 4,610,962 |
Cash and cash equivalents | 6,093 | 4,077 |
Restricted cash-furniture, fixtures and other escrows | 32,686 | 39,435 |
Due from third party managers, net | 71,120 | 43,331 |
Other assets, net | 67,855 | 74,909 |
Total Assets | 4,761,251 | 4,772,714 |
Liabilities | ||
Debt, net | 1,417,679 | 1,366,249 |
Finance lease liabilities | 111,994 | 112,006 |
Accounts payable and other liabilities | 78,716 | 116,064 |
Total Liabilities | 1,608,389 | 1,594,319 |
Shareholders' Equity | ||
Preferred stock, authorized 30,000,000 shares; none issued and outstanding | 0 | 0 |
Common stock, no par value, authorized 800,000,000 shares; issued and outstanding 229,013,349 and 228,644,861 shares, respectively | 4,581,841 | 4,577,022 |
Accumulated other comprehensive income | 28,775 | 36,881 |
Distributions greater than net income | (1,457,754) | (1,435,508) |
Total Shareholders' Equity | 3,152,862 | 3,178,395 |
Total Liabilities and Shareholders' Equity | $ 4,761,251 | $ 4,772,714 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Statement Of Financial Position [Abstract] | ||
Investment in real estate accumulated depreciation (in Dollars) | $ 1,537,998 | $ 1,492,097 |
Preferred stock, shares authorized | 30,000,000 | 30,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares authorized | 800,000,000 | 800,000,000 |
Common stock, shares issued | 229,013,349 | 228,644,861 |
Common stock, shares outstanding | 229,013,349 | 228,644,861 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues: | ||
Total revenue | $ 311,454 | $ 260,478 |
Expenses: | ||
Total hotel operating expense | 185,165 | 154,002 |
Property taxes, insurance and other | 19,675 | 18,679 |
General and administrative | 11,461 | 9,638 |
Depreciation and amortization | 45,906 | 45,324 |
Total expense | 262,207 | 227,643 |
Operating income | 49,247 | 32,835 |
Interest and other expense, net | (16,004) | (14,654) |
Income before income taxes | 33,243 | 18,181 |
Income tax expense | (320) | (179) |
Net income | 32,923 | 18,002 |
Other comprehensive income (loss) : | ||
Interest rate derivatives | (8,106) | 27,219 |
Comprehensive income | $ 24,817 | $ 45,221 |
Basic net income per common share | $ 0.14 | $ 0.08 |
Diluted net income per common share | $ 0.14 | $ 0.08 |
Weighted average common shares outstanding - basic (in Shares) | 229,398 | 228,986 |
Weighted average common shares outstanding - diluted (in Shares) | 229,398 | 228,986 |
Room [Member] | ||
Revenues: | ||
Total revenue | $ 285,520 | $ 237,976 |
Food and Beverage [Member] | ||
Revenues: | ||
Total revenue | 12,949 | 8,464 |
Other [Member] | ||
Revenues: | ||
Total revenue | 12,985 | 14,038 |
Direct Operating [Member] | ||
Expenses: | ||
Total hotel operating expense | 78,663 | 64,331 |
Hotel Administrative [Member] | ||
Expenses: | ||
Total hotel operating expense | 27,319 | 23,842 |
Sales and Marketing [Member] | ||
Expenses: | ||
Total hotel operating expense | 27,700 | 22,469 |
Utilities [Member] | ||
Expenses: | ||
Total hotel operating expense | 11,698 | 10,290 |
Repair and Maintenance [Member] | ||
Expenses: | ||
Total hotel operating expense | 15,665 | 13,028 |
Royalty [Member] | ||
Expenses: | ||
Total hotel operating expense | 13,644 | 11,266 |
Management Service [Member] | ||
Expenses: | ||
Total hotel operating expense | $ 10,476 | $ 8,776 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Distributions Greater Than Net Income [Member] |
Balance at Dec. 31, 2021 | $ 3,147,321 | $ 4,569,352 | $ (15,508) | $ (1,406,523) |
Balance (in Shares) at Dec. 31, 2021 | 228,256 | |||
Share based compensation, net | 9,592 | $ 9,592 | ||
Share based compensation, net (in Shares) | 633 | |||
Equity issuance costs | (186) | $ (186) | ||
Interest rate derivatives | 27,219 | 27,219 | ||
Net income | 18,002 | 18,002 | ||
Distributions declared to shareholders | (22,841) | (22,841) | ||
Balance at Mar. 31, 2022 | 3,179,107 | $ 4,578,758 | 11,711 | (1,411,362) |
Balance (in Shares) at Mar. 31, 2022 | 228,889 | |||
Balance at Dec. 31, 2022 | 3,178,395 | $ 4,577,022 | 36,881 | (1,435,508) |
Balance (in Shares) at Dec. 31, 2022 | 228,645 | |||
Share based compensation, net | 8,405 | $ 8,405 | ||
Share based compensation, net (in Shares) | 618 | |||
Equity issuance costs | (29) | $ (29) | ||
Common shares repurchased | $ (3,557) | $ (3,557) | ||
Common shares repurchased (in Shares) | (300) | (250) | ||
Interest rate derivatives | $ (8,106) | (8,106) | ||
Net income | 32,923 | 32,923 | ||
Distributions declared to shareholders | (55,169) | (55,169) | ||
Balance at Mar. 31, 2023 | $ 3,152,862 | $ 4,581,841 | $ 28,775 | $ (1,457,754) |
Balance (in Shares) at Mar. 31, 2023 | 229,013 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parentheticals) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement Of Stockholders Equity [Abstract] | ||
Distributions declared to shareholders | $ 0.24 | $ 0.10 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | |
Cash flows from operating activities: | ||
Net income | $ 32,923 | $ 18,002 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 45,906 | 45,324 |
Other non-cash expenses, net | 2,013 | 2,174 |
Changes in operating assets and liabilities: | ||
Increase in due from third party managers, net | (27,789) | (20,508) |
Increase in other assets, net | (745) | (3,308) |
Decrease in accounts payable and other liabilities | (617) | (2,621) |
Net cash provided by operating activities | 51,691 | 39,063 |
Cash flows from investing activities: | ||
Disbursements for potential acquisitions, net | (677) | |
Capital improvements | (23,899) | (13,586) |
Net cash used in investing activities | (24,576) | (13,586) |
Cash flows from financing activities: | ||
Repurchases of common shares | (3,557) | |
Repurchases of common shares to satisfy employee withholding requirements | (5,742) | (4,415) |
Distributions paid to common shareholders | (73,399) | (13,701) |
Equity issuance costs | (15) | (23) |
Net proceeds from revolving credit facility | 40,500 | 500 |
Proceeds from term loans and senior notes | 50,000 | |
Payments of mortgage debt and other loans | (39,568) | (6,556) |
Principal payments on finance leases | (67) | (27) |
Net cash used in financing activities | (31,848) | (24,222) |
Net change in cash, cash equivalents and restricted cash | (4,733) | 1,255 |
Cash, cash equivalents and restricted cash, beginning of period | 43,512 | 39,949 |
Cash, cash equivalents and restricted cash, end of period | 38,779 | 41,204 |
Supplemental cash flow information: | ||
Interest paid | 15,605 | 13,849 |
Supplemental disclosure of noncash investing and financing activities: | ||
Accrued distribution to common shareholders | 18,296 | 11,420 |
Reconciliation of cash, cash equivalents and restricted cash: | ||
Cash and cash equivalents, beginning of period | 4,077 | 3,282 |
Restricted cash-furniture, fixtures and other escrows, beginning of period | 39,435 | 36,667 |
Cash, cash equivalents and restricted cash, beginning of period | 43,512 | 39,949 |
Cash and cash equivalents, end of period | 6,093 | 636 |
Restricted cash-furniture, fixtures and other escrows, end of period | 32,686 | 40,568 |
Cash, cash equivalents and restricted cash, end of period | $ 38,779 | $ 41,204 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | 1. Organization and Summary of Significant Accounting Policies Organization Apple Hospitality REIT, Inc., formed in November 2007 as a Virginia corporation, together with its wholly-owned subsidiaries (the “Company”), is a self-advised real estate investment trust (“REIT”) that invests in income-producing real estate, primarily in the lodging sector, in the United States (“U.S.”). The Company’s fiscal year end is December 31. The Company has no foreign operations or assets, and its operating structure includes only one reportable segment. The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated. Although the Company has interests in potential variable interest entities through its purchase commitments, it is not the primary beneficiary as the Company does not have any elements of power in the decision-making process of these entities; therefore, the Company does not consolidate the entities. As of March 31, 2023, the Company owned 220 hotels with an aggregate of 28,984 rooms located in 37 states. The Company’s common shares are listed on the New York Stock Exchange (“NYSE”) under the ticker symbol “APLE.” Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with the rules and regulations for reporting on Form 10-Q. Accordingly, they do not include all of the information required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These unaudited financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Form 10-K”). Operating results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the twelve-month period ending December 31, 2023 . Use of Estimates The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Net Income Per Common Share Basic net income per common share is computed based upon the weighted average number of shares outstanding during the period. Diluted net income per common share is calculated after giving effect to all potential common shares that were dilutive and outstanding for the period. Basic and diluted net income per common share were the same for each of the periods presented. |
Investment in Real Estate
Investment in Real Estate | 3 Months Ended |
Mar. 31, 2023 | |
Real Estate [Abstract] | |
Investment in Real Estate | 2. Investment in Real Estate The Company’s investment in real estate consisted of the following (in thousands): March 31, December 31, 2023 2022 Land $ 802,625 $ 802,625 Building and improvements 4,667,363 4,656,343 Furniture, fixtures and equipment 529,342 522,082 Finance ground lease assets 102,084 102,084 Franchise fees 20,081 19,925 6,121,495 6,103,059 Less accumulated depreciation and amortization ( 1,537,998 ) ( 1,492,097 ) Investment in real estate, net $ 4,583,497 $ 4,610,962 As of March 31, 2023, the Company owned 220 hotels with an aggregate of 28,984 rooms located in 37 states. The Company leases all of its hotels to its wholly-owned taxable REIT subsidiary (or a subsidiary thereof) under a master hotel lease agreement. Hotel Acquisitions There were no acquisitions during the three months ended March 31, 2023 . During the year ended December 31, 2022, the Company acquired two hotels. The following table sets forth the location, brand, manager, date acquired, number of rooms and gross purchase price, excluding transaction costs, for each hotel. All dollar amounts are in thousands. City State Brand Manager Date Rooms Gross Louisville KY AC Hotels Concord 10/25/2022 156 $ 51,000 Pittsburgh PA AC Hotels Concord 10/25/2022 134 34,000 290 $ 85,000 In 2022, the Company utilized its available cash on hand and a $ 50 million draw on its $ 575 million term loan facility (as defined below) to purchase both hotels. The acquisitions of these hotel properties were accounted for as acquisitions of asset groups, whereby costs incurred to effect the acquisitions (which were not significant) were capitalized as part of the cost of the assets acquired. Hotel Purchase Contract Commitments As of March 31, 2023 , the Company had separate outstanding contracts for the potential purchase of two hotels for a total expected purchase price of approximately $ 109.6 million. Of these two hotels, one is already in operation, and the Company plans to complete the purchase of this hotel in the second quarter of 2023. The other purchase contract is for a hotel under development that is currently planned to be completed and opened for business in early 2024, at which time the Company expects to complete the purchase of this hotel. Although the Company is working towards acquiring these hotels, there are a number of conditions to closing that have not yet been satisfied, and there can be no assurance that closings on these hotels will occur under the outstanding purchase contracts. If the sellers meet all of the conditions to closing, the Company is obligated to specifically perform under these contracts and acquire these hotels. The following table summarizes the location, brand, date of purchase contract, expected number of rooms, refundable (if the seller does not meet its obligations under the contract) deposits paid and gross purchase price for each of the contracts outstanding at March 31, 2023. All dollar amounts are in thousands. Location Brand Date of Rooms Refundable Gross Madison, WI (1) Embassy Suites 7/27/2021 260 $ 893 $ 78,598 Cleveland, OH Courtyard 2/27/2023 154 500 31,000 414 $ 1,393 $ 109,598 (1) This hotel is currently under development. The table shows the expected number of rooms upon hotel completion and the expected franchise brand. Assuming all conditions to closing are met, the purchase of this hotel is expected to occur in early 2024. If the seller meets all of the conditions to closing, the Company is obligated to specifically perform under the contract. As this property is under development, at this time, the seller has not met all of the conditions to closing. |
Dispositions
Dispositions | 3 Months Ended |
Mar. 31, 2023 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Dispositions | 3. Dispositions There were no dispositions during the three months ended March 31, 2023. During the year ended December 31, 2022 , the Company sold one hotel, a 55 -room independent boutique hotel in Richmond, Virginia, to an unrelated party for a gross sales price of approximately $ 8.5 million, resulting in a gain on sale of approximately $ 1.8 million, net of transaction costs, which is included in the Company’s consolidated statement of operations for the year ended December 31, 2022. The hotel had a total carrying value of approximately $ 6.5 million at the time of the sale. Excluding gains on sale of real estate, the Company’s consolidated statements of operations include operating income of less than $ 0.1 million for the three months ended March 31, 2022, relating to the results of operations of the one hotel sold in 2022 noted above for the period of ownership. The sale of this property does not represent a strategic shift that has, or will have, a major effect on the Company’s operations and financial results; therefore, the operating results for the period of ownership of this property are included in income from continuing operations for the three months ended March 31, 2022. The net proceeds from the sale of the one hotel in 2022 were used for general corporate purposes. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | 4. Debt Summary As of March 31, 2023 and December 31, 2022, the Company’s debt consisted of the following (in thousands): March 31, December 31, Revolving credit facility $ 40,500 $ - Term loans and senior notes, net 1,087,866 1,037,384 Mortgage debt, net 289,313 328,865 Debt, net $ 1,417,679 $ 1,366,249 The aggregate amounts of principal payable under the Company’s total debt obligations as of March 31, 2023 (including the Revolving Credit Facility (if any) (as defined below), term loans, senior notes and mortgage debt), for the remainder of this fiscal year, each of the next four fiscal years and thereafter are as follows (in thousands): 2023 (April - December) $ 56,645 2024 113,597 2025 245,140 2026 115,149 2027 278,602 Thereafter 616,014 1,425,147 Unamortized fair value adjustment of assumed debt 776 Unamortized debt issuance costs ( 8,244 ) Total $ 1,417,679 The Company uses interest rate swaps to manage its interest rate risk on a portion of its variable-rate debt. Throughout the terms of these interest rate swaps, the Company pays a fixed rate of interest and receives a floating rate of interest equal to the annual Secured Overnight Financing Rate (“SOFR”) for a one-month term (“one-month SOFR”) plus a 0.10 % SOFR spread adjustment . The swaps are designed to effectively fix the interest payments on variable-rate debt instruments. See Note 5 for more information on the interest rate swap agreements. The Company’s total fixed-rate and variable-rate debt, after giving effect to its interest rate swaps in effect at March 31, 2023 and December 31, 2022, is set forth below. All dollar amounts are in thousands. March 31, Percentage December 31, Percentage Fixed-rate debt (1) $ 1,109,647 78 % $ 1,149,215 84 % Variable-rate debt 315,500 22 % 225,000 16 % Total $ 1,425,147 $ 1,374,215 Weighted-average interest rate of debt 4.30 % 3.93 % (1) Fixed-rate debt includes the portion of variable-rate debt where the interest payments have been effectively fixed by interest rate swaps as of the respective balance sheet date. See Note 5 for more information on the interest rate swap agreements. Credit Facilities $1.2 Billion Credit Facility On July 25, 2022, the Company entered into a credit facility (the “$ 1.2 billion credit facility”) that is comprised of (i) a $ 650 million revolving credit facility with an initial maturity date of July 25, 2026 (the “Revolving Credit Facility”), (ii) a $ 275 million term loan with a maturity date of July 25, 2027 , funded at closing, and (iii) a $ 300 million term loan with a maturity date of January 31, 2028 (including a $ 150 million delayed draw option until 180 days from closing), of which $ 200 million was funded at closing, $ 50 million was funded on October 24, 2022 and the remaining $ 50 million was funded on January 17, 2023 (clauses (ii) and (iii) are referred to together as the “ $ 575 million term loan facility”) . Subject to certain conditions, including covenant compliance and additional fees, the Revolving Credit Facility maturity date may be extended up to one year. The credit agreement for the $ 1.2 billion credit facility contains mandatory prepayment requirements, customary affirmative and negative covenants (as described below), restrictions on certain investments and events of default. The Company may make voluntary prepayments, in whole or in part, at any time. Interest payments on the $ 1.2 billion credit facility are due monthly, and the interest rate, subject to certain exceptions, is equal to the one-month SOFR plus a 0.10 % SOFR spread adjustment plus a margin ranging from 1.35 % to 2.25 %, depending upon the Company’s leverage ratio, as calculated under the terms of the credit agreement. As of March 31, 2023 , the Company had availability of $ 609.5 million under the Revolving Credit Facility. The Company is also required to pay quarterly an unused facility fee at an annual rate of 0.20 % or 0.25 % on the unused portion of the Revolving Credit Facility, based on the amount of borrowings outstanding during the quarter. $225 Million Term Loan Facility The Company also has an unsecured $ 225 million term loan facility that is comprised of (i) a $ 50 million term loan with a maturity date of August 2, 2023 , which was funded on August 2, 2018 , and (ii) a $ 175 million term loan with a maturity date of August 2, 2025 , of which $ 100 million was funded on August 2, 2018, and the remaining $ 75 million was funded on January 29, 2019 (clauses (i) and (ii) are referred to together as the “$ 225 million term loan facility”) . The Company may make voluntary prepayments, in whole or in part, at any time, subject to certain conditions. Interest payments on the $ 225 million term loan facility are due monthly and the interest rate, subject to certain exceptions, is equal to an annual rate of the one-month SOFR plus a 0.10 % SOFR spread adjustment plus a margin ranging from 1.35 % to 2.50 %, depending upon the Company’s leverage ratio, as calculated under the terms of the credit agreement. 2017 $85 Million Term Loan Facility On July 25, 2017, the Company entered into an unsecured $ 85 million term loan facility with a maturity date of July 25, 2024 , consisting of one term loan (the “2017 $ 85 million term loan facility”) that was fu nded at closing. The Company may make voluntary prepayments, in whole or in part, at any time, subject to certain conditions. Interest payments on the 2017 $ 85 million term loan facility are due monthly, and the interest rate, subject to certain exceptions, is equal to an annual rate of the one-month SOFR plus a 0.10 % SOFR spread adjustment plus a margin ranging from 1.30 % to 2.10 %, depending upon the Company’s leverage ratio, as calculated under the terms of the credit agreement. 2019 $85 Million Term Loan Facility On December 31, 2019, the Company entered into an unsecured $ 85 million term loan facility with a maturity date of December 31, 2029 , consisting of one term loan funded at closing (the “2019 $ 85 million term loan facility”). Net proceeds from the 2019 $ 85 million term loan facility were used to pay down borrowings under the Company’s then-existing $ 425 million revolving credit f acility. The Company may make voluntary prepayments, in whole or in part, subject to certain conditions. Interest payments on the 2019 $ 85 milli on term loan facility are due monthly, and the interest rate, subject to certain exceptions, is equal to an annual rate of the one-month SOFR plus a 0.10 % SOFR spread adjustment plus a margin ranging from 1.70 % to 2.55 %, depending upon the Company’s leverage ratio, as calculated under the terms of the credit agreement. $50 Million Senior Notes Facility On March 16, 2020, the Company entered into an unsecured $ 50 million senior notes facility with a maturity date of March 31, 2030 , consisting of senior notes totaling $ 50 million funded at closing (the “$ 50 million senior notes facility”). Net proceeds from the $ 50 million senior notes facility were available to provide funding for general corporate purposes. T he Company may make voluntary prepayments, in whole or in part, at any time, subject to certain conditions, including make-whole provisions. Interest payments on the $ 50 million senior notes facility are due quarterly, and the interest rate, subject to certain exceptions, ranges from an annual rate of 3.60 % to 4.35 % depending on the Company’s leverage ratio, as calculated under the terms of the note agreement. $75 Million Senior Notes Facility On June 2, 2022, the Company entered into an unsecured $ 75 million senior notes facility with a maturity date of June 2, 2029 , consisting of senior notes totaling $ 75 million funded at closing (the “$ 75 million senior notes facility”, and collectively with the $ 1.2 billion credit facility, the $ 225 million term loan facility, the 2017 $ 85 million term loan facility, the 2019 $ 85 million term loan facility and the $ 50 million senior notes facility, the “unsecured credit facilities”). Net proceeds from the $ 75 million senior notes facility were available to provide funding for general corporate purposes, including the repayment of borrowings under the Company’s then-existing $ 425 million revolving credit facility and repayment of mortgage debt. The Company may make voluntary prepayments, in whole or in part, at any time, subject to certain conditions, including make-whole provisions. Interest payments on the $ 75 million senior notes facility are due quarterly, and the interest rate, subject to certain exceptions, ranges from an annual rate of 4.88 % to 5.63 % depending on the Company’s leverage ratio, as calculated under the terms of the note agreement. As of March 31, 2023 and December 31, 2022, the details of the Company’s unsecured credit facilities were as set forth in the table below. All dollar amounts are in thousands. Outstanding Balance Interest Rate Maturity March 31, 2023 December 31, 2022 Revolving credit facility (1) SOFR + 0.10 % + 1.40 % - 2.25 % 7/25/2026 $ 40,500 $ - Term loans and senior notes $275 million term loan SOFR + 0.10 % + 1.35 % - 2.20 % 7/25/2027 275,000 275,000 $300 million term loan SOFR + 0.10 % + 1.35 % - 2.20 % 1/31/2028 300,000 250,000 $50 million term loan SOFR + 0.10 % + 1.35 % - 2.20 % 8/2/2023 50,000 50,000 $175 million term loan SOFR + 0.10 % + 1.65 % - 2.50 % 8/2/2025 175,000 175,000 2017 $85 million term loan SOFR + 0.10 % + 1.30 % - 2.10 % 7/25/2024 85,000 85,000 2019 $85 million term loan SOFR + 0.10 % + 1.70 % - 2.55 % 12/31/2029 85,000 85,000 $50 million senior notes 3.60 % - 4.35 % 3/31/2030 50,000 50,000 $75 million senior notes 4.88 % - 5.63 % 6/2/2029 75,000 75,000 Term loans and senior notes at stated 1,095,000 1,045,000 Unamortized debt issuance costs ( 7,134 ) ( 7,616 ) Term loans and senior notes, net 1,087,866 1,037,384 Credit facilities, net (1) $ 1,128,366 $ 1,037,384 Weighted-average interest rate (2) 4.39 % 3.92 % (1) Excludes unamortized debt issuance costs related to the Revolving Credit Facility totaling approximately $ 4.4 million and $ 4.8 million as of March 31, 2023 and December 31, 2022 , respectively, which are included in other assets, net in the Company’s consolidated balance sheets. (2) Interest rate represents the weighted-average effective annual interest rate at the balance sheet date which includes the effect of interest rate swaps in effect on $ 695.0 million of the outstanding variable-rate debt as of March 31, 2023 and December 31, 2022. See Note 5 for more information on the interest rate swap agreements. The one-month SOFR on March 31, 2023 and December 31, 2022 was 4.80 % and 4.36 %, respectively. Credit Facilities Covenants The credit agreements governing the unsecured credit facilities (collectively, the “credit agreements”) contain mandatory prepayment requirements, customary affirmative and negative covenants, restrictions on certain investments and events of default, including the following financial and restrictive covenants (capitalized terms not defined below are defined in the credit agreements): • A ratio of Consolidated Total Indebtedness to Consolidated EBITDA (“Maximum Consolidated Leverage Ratio”) of not more than 7.25 to 1.00; • A ratio of Consolidated Secured Indebtedness to Consolidated Total Assets (“Maximum Secured Leverage Ratio”) of not more than 45 %; • A minimum Consolidated Tangible Net Worth of approximately $ 3.4 billion plus an amount equal to 75 % of the Net Cash Proceeds from issuances and sales of Equity Interests occurring after the Closing Date, July 25, 2022, subject to adjustment; • A ratio of Adjusted Consolidated EBITDA to Consolidated Fixed Charges (“Minimum Fixed Charge Coverage Ratio”) of not less than 1.50 to 1.00 for the trailing four full quarters; • A ratio of Unencumbered Adjusted NOI to Consolidated Implied Interest Expense for Consolidated Unsecured Indebtedness (“Minimum Unsecured Interest Coverage Ratio”) of not less than 2.00 to 1.00 for the trailing four full quarters; • A ratio of Consolidated Unsecured Indebtedness to Unencumbered Asset Value (“Maximum Unsecured Leverage Ratio”) of not more than 60 % (subject to a higher level in certain circumstances); and • A ratio of Consolidated Secured Recourse Indebtedness to Consolidated Total Assets (“Maximum Secured Recourse Indebtedness”) of not more than 10 %. The Company was in compliance with the applicable covenants at March 31, 2023 . Mortgage Debt As of March 31, 2023, the Company had approximately $ 289.6 million in outstanding mortgage debt secured by 15 properties with maturity dates ranging from August 2024 to May 2038, stated interest rates ranging from 3.40 % to 4.46 % and effective interest rates ranging from 3.40 % to 4.37 %. The loans generally provide for monthly payments of principal and interest on an amortized basis and defeasance or prepayment penalties if prepaid. The following table sets forth the hotel properties securing each loan, the interest rate, loan assumption or origination date, maturity date, the principal amount assumed or originated, and the outstanding balance prior to any fair value adjustments or debt issuance costs as of March 31, 2023 and December 31, 2022 for each of the Company’s mortgage debt obligations. All dollar amounts are in thousands. Location Brand Interest (1) Loan Maturity Principal Outstanding Outstanding Miami, FL Homewood Suites 4.02 % 3/1/2014 (2) $ 16,677 $ - $ 12,440 Huntsville, AL Homewood Suites 4.12 % 3/1/2014 (3) 8,306 - 6,193 Prattville, AL Courtyard 4.12 % 3/1/2014 (3) 6,596 - 4,918 San Diego, CA Residence Inn 3.97 % 3/1/2014 (4) 18,600 - 13,827 New Orleans, LA Homewood Suites 4.36 % 7/17/2014 8/11/2024 27,000 20,947 21,161 Westford, MA Residence Inn 4.28 % 3/18/2015 4/11/2025 10,000 7,946 8,024 Denver, CO Hilton Garden Inn 4.46 % 9/1/2016 6/11/2025 34,118 28,134 28,400 Oceanside, CA Courtyard 4.28 % 9/1/2016 10/1/2025 13,655 11,942 12,019 Omaha, NE Hilton Garden Inn 4.28 % 9/1/2016 10/1/2025 22,681 19,836 19,963 Boise, ID Hampton 4.37 % 5/26/2016 6/11/2026 24,000 21,065 21,194 Burbank, CA Courtyard 3.55 % 11/3/2016 12/1/2026 25,564 21,129 21,326 San Diego, CA Courtyard 3.55 % 11/3/2016 12/1/2026 25,473 21,054 21,250 San Diego, CA Hampton 3.55 % 11/3/2016 12/1/2026 18,963 15,673 15,819 Burbank, CA SpringHill Suites 3.94 % 3/9/2018 4/1/2028 28,470 24,855 25,057 Santa Ana, CA Courtyard 3.94 % 3/9/2018 4/1/2028 15,530 13,558 13,668 Richmond, VA Courtyard 3.40 % 2/12/2020 3/11/2030 14,950 14,066 14,144 Richmond, VA Residence Inn 3.40 % 2/12/2020 3/11/2030 14,950 14,066 14,144 Portland, ME Residence Inn 3.43 % 3/2/2020 3/1/2032 33,500 30,500 30,500 San Jose, CA Homewood Suites 4.22 % 12/22/2017 5/1/2038 30,000 24,876 25,168 $ 389,033 289,647 329,215 Unamortized fair value adjustment of 776 819 Unamortized debt issuance costs ( 1,110 ) ( 1,169 ) Total $ 289,313 $ 328,865 (1) Interest rates are the rates per the loan agreement. For loans assumed, the Company adjusted the interest rates per the loan agreement to market rates and is amortizing the adjustments to interest expense over the life of the loan. (2) Loan was repaid in full on January 3, 2023. (3) Loan was repaid in full on February 6, 2023. (4) Loan was repaid in full on March 6, 2023. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 5. Fair Value of Financial Instruments Except as described below, the carrying value of the Company’s financial instruments approximates fair value due to the short-term nature of these financial instruments. Debt The Company estimates the fair value of its debt by discounting the future cash flows of each instrument at estimated market rates consistent with the maturity of a debt obligation with similar credit terms and credit characteristics, which are Level 3 inputs under the fair value hierarchy. Market rates take into consideration general market conditions and maturity. As of March 31, 2023, both the carrying value and estimated fair value of the Company’s debt were approximately $ 1.4 billion . As of December 31, 2022 , the carrying value and estimated fair value of the Company’s debt were approximately $ 1.4 billion and $ 1.3 billion, respectively. Both the carrying value and estimated fair value of the Company’s debt (as discussed above) are net of unamortized debt issuance costs related to term loans, senior notes and mortgage debt for each specific year. Derivative Instruments Currently, the Company uses interest rate swaps to manage its interest rate risk on variable-rate debt. Throughout the terms of these interest rate swaps, the Company pays a fixed rate of interest and receives a floating rate of interest equal to the one-month SOFR plus a 0.10 % SOFR spread adjustment . The swaps are designed to effectively fix the interest payments on variable-rate debt instruments. These swap instruments are recorded at fair value and, if in an asset position, are included in other assets, net, and, if in a liability position, are included in accounts payable and other liabilities in the Company’s consolidated balance sheets. The fair values of the Company’s interest rate swap agreements are determined using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts, which is considered a Level 2 measurement under the fair value hierarchy. The variable cash receipts are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The following table sets forth information for each of the Company’s interest rate swap agreements outstanding as of March 31, 2023 and December 31, 2022. All dollar amounts are in thousands. Fair Value Asset (Liability) Notional Amount at Origination Effective Maturity Swap Fixed March 31, December 31, Active interest rate swaps designated as cash flow hedges at March 31, 2023: $ 75,000 5/31/2017 7/31/2017 6/30/2024 1.95 % $ 2,409 $ 3,026 10,000 8/10/2017 8/10/2017 6/30/2024 2.02 % 311 386 50,000 6/1/2018 1/31/2019 6/30/2025 2.88 % 1,254 1,655 50,000 7/2/2019 7/5/2019 7/18/2024 1.64 % 1,844 2,298 50,000 8/21/2019 8/23/2019 8/18/2024 1.31 % 2,167 2,675 50,000 8/21/2019 8/23/2019 8/30/2024 1.32 % 2,198 2,703 85,000 12/31/2019 12/31/2019 12/31/2029 1.87 % 7,435 9,511 25,000 12/6/2018 1/31/2020 6/30/2025 2.74 % 701 909 50,000 12/7/2018 5/18/2020 1/31/2024 2.71 % 877 1,163 75,000 8/21/2019 5/18/2020 5/18/2025 1.26 % 4,365 5,225 75,000 8/21/2019 5/18/2021 5/18/2026 1.29 % 5,467 6,506 50,000 3/17/2023 3/20/2023 3/18/2028 3.50 % ( 126 ) - 50,000 3/17/2023 3/20/2023 3/20/2028 3.49 % ( 127 ) - 695,000 28,775 36,057 Matured interest rate swap at March 31, 2023: $ 100,000 4/7/2016 9/30/2016 3/31/2023 1.30 % - 824 $ 28,775 $ 36,881 The Company assesses, both at inception and on an ongoing basis, the effectiveness of its qualifying cash flow hedges. As of March 31, 2023, all of the 13 active interest rate swap agreements listed above were designated as cash flow hedges. The change in the fair value of the Company’s designated cash flow hedges is recorded to accumulated other comprehensive income, a component of shareholders’ equity in the Company’s consolidated balance sheets. Amounts reported in accumulated other comprehensive income will be reclassified to interest and other expense, net as interest payments are made or received on the Company’s variable-rate derivatives. The Company estimates that approximately $ 16.6 million of net unrealized gains included in accumulated other comprehensive income at March 31, 2023 will be reclassified as a decrease to interest and other expense, net within the next 12 months. The following table presents the effect of derivative instruments in cash flow hedging relationships in the Company’s consolidated statements of operations and comprehensive income for the three months ended March 31, 2023 and 2022 (in thousands): Net Unrealized Gain (Loss) Net Unrealized Gain (Loss) Reclassified Three Months Ended March 31, Three Months Ended March 31, 2023 2022 2023 2022 Interest rate derivatives in cash flow $ ( 3,091 ) $ 24,464 $ 5,015 $ ( 2,755 ) |
Related Parties
Related Parties | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Parties | 6. Related Parties The Company has engaged in, and is expected to continue to engage in, transactions with related parties. These transactions cannot be construed to be at arm’s length, and the results of the Company’s operations may have been different if these transactions were conducted with non-related parties. There have been no changes to the contracts and relationships discussed in the 2022 Form 10-K. Below is a summary of the significant related party relationships in effect during the three months ended March 31, 2023 and 2022. Glade M. Knight, Executive Chairman of the Company, owns Apple Realty Group, Inc. (“ARG”), which receives support services from the Company and reimburses the Company for the cost of these services as discussed below. Mr. Knight is also currently a partner and Chief Executive Officer of Energy 11 GP, LLC and Energy Resources 12 GP, LLC, which are the respective general partners of Energy 11, L.P. and Energy Resources 12, L.P., each of which receives support services from ARG. The Company provides support services, including the use of the Company’s employees and corporate office, to ARG and is reimbursed by ARG for the cost of these services. Under this cost sharing structure, amounts reimbursed to the Company include both compensation for personnel and office related costs (including office rent, utilities, office supplies, etc.) used by ARG. The amounts reimbursed to the Company are based on the actual costs of the services and a good faith estimate of the proportionate amount of time incurred by the Company’s employees on behalf of ARG. Total reimbursed costs allocated by the Company to ARG for each of the three month periods ended March 31, 2023 and 2022 totaled approximately $ 0.2 million, and are recorded as a reduction to general and administrative expenses in the Company’s consolidated statements of operations. As part of the cost sharing arrangement, certain day-to-day transactions may result in amounts due to or from the Company and ARG. To efficiently manage cash disbursements, the Company or ARG may make payments for the other company. Under this cash management process, each company may advance or defer up to $ 1 million at any time. Each quarter, any outstanding amounts are settled between the companies. This process allows each company to minimize its cash on hand and reduces the cost for each company. The amounts outstanding at any point in time are not significant to either of the companies. As of March 31, 2023 and December 31, 2022 , total amounts due from ARG for reimbursements under the cost sharing structure totaled approximately $ 0.2 million and $ 0.4 million, respectively, and are included in other assets, net in the Company’s consolidated balance sheets. The Company, through its wholly-owned subsidiary, Apple Air Holding, LLC, owns a Learjet used primarily for acquisition, asset management, renovation, investor, corporate and public relations and other business purposes. The aircraft is also leased to affiliates of the Company based on third-party rates. Lease activity was not significant during the reporting periods. From time to time, the Company utilizes aircraft, owned by an entity which is owned by the Company’s Executive Chairman, for acquisition, asset management, renovation, investor, corporate and public relations and other business purposes, and reimburses this entity at third-party rates. Total costs incurred for the use of the aircraft during the three months ended March 31, 2023 and 2022 were less than $ 0.1 million and are included in general and administrative expenses in the Company’s consolidated statements of operations. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2023 | |
Stockholders Equity Note [Abstract] | |
Shareholders' Equity | 7. Shareholders’ Equity Distributions For the three months ended March 31, 2023 , the Company paid distributions of $ 0.32 per common share for a total of $ 73.4 million. During the three months ended March 31, 2022 , the Company paid distributions of $ 0.06 per common share for a total of $ 13.7 million. Additionally, in March 2023 , the Company declared a monthly cash distribution of $ 0.08 per common share, totaling $ 18.3 million, which was recorded as a payable as of March 31, 2023 and paid on April 17, 2023 . In addition to the regular monthly cash distribution of $ 0.08 per common share for December 2022, the Board of Directors approved a special one-time distribution of $ 0.08 per common share for a combined distribution of $ 0.16 per common share, totaling $ 36.6 million, which was recorded as a payable as of December 31, 2022 and paid in January 2023 . These accrued distributions were included in accounts payable and other liabilities in the Company’s consolidated balance sheets as of March 31, 2023 and December 31, 2022, respectively. Issuance of Shares On August 12, 2020, the Company entered into an equity distribution agreement pursuant to which the Company may sell, from time to time, up to an aggregate of $ 300 million of its common shares under an at-the-market offering program (the “ATM Program”) under the Company’s prior shelf registration statement and the current shelf registration statement. Since inception of the ATM Program in August 2020 through March 31, 2023 , the Company sold approximately 4.7 million common shares under its ATM Program at a weighted-average market sales price of approximately $ 16.26 per common share and received aggregate gross proceeds of approximately $ 76.0 million and proceeds net of offering costs, which included $ 0.9 million of commissions, of approximately $ 75.1 million. The Company used the net proceeds from the sale of these shares primarily to pay down borrowings under its then-existing $ 425 million revolving credit facility and used the corresponding increased availability under the $425 million revolving credit facility for general corporate purposes, including acquisitions of hotel properties. As of March 31, 2023, approximately $ 224.0 million remained available for issuance under the ATM Program. No shares were sold under the Company’s ATM Program during the quarter ended March 31, 2023. The Company plans to use future net proceeds from the sale of shares under the ATM Program for general corporate purposes which may include, among other things, acquisitions of additional properties, the repayment of outstanding indebtedness, capital expenditures, improvement of properties in its portfolio and working capital. The Company may also use the net proceeds to acquire another REIT or other company that invests in income producing properties. Share Repurchases In May 2022, the Company’s Board of Directors approved a one-year extension of its existing share repurchase program, authorizing share repurchases up to an aggregate of $ 345 million (the “Share Repurchase Program”). The Share Repurchase Program may be suspended or terminated at any time by the Company and will end in July 2023 if not terminated or extended earlier. During the three months ended March 31, 2023 , the Company purchased, under its Share Repurchase Program, approximately 0.3 million of its common shares at a weighted-average market purchase price of approximately $ 14.22 per common share for an aggregate purchase price, including commissions, of approximately $ 3.6 million. The shares were repurchased under a written trading plan as part of the Share Repurchase Program that provides for share repurchases in open market transactions and that is intended to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Repurchases under the Share Repurchase Program have been funded, and the Company intends to fund future repurchases, with cash on hand or availability under its unsecured credit facilities, subject to applicable restrictions under the Company’s unsecured credit facilities (if any). The timing of share repurchases and the number of common shares to be repurchased under the Share Repurchase Program will also depend upon prevailing market conditions, regulatory requirements and other factors. As of March 31, 2023 , approximately $ 338.8 million remained available for purchase under the Share Repurchase Program. |
Compensation Plans
Compensation Plans | 3 Months Ended |
Mar. 31, 2023 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Compensation Plans | 8. Compensation Plans The Company annually establishes an incentive plan for its executive management team. Under the incentive plan for 2023 (the “2023 Incentive Plan”), participants are eligible to receive incentive compensation based on the achievement of certain 2023 performance measures, with one-half ( 50 %) of incentive compensation based on operational performance goals and metrics and one-half ( 50 %) of incentive compensation based on shareholder return metrics. With respect to the shareholder return metrics, 75 % of the target will be based on shareholder return relative to a peer group and 25 % will be based on total shareholder return metrics over one-year, two-year, and three-year periods. With respect to the operational performance goals and metrics, 25 % of the target will be based on modified funds from operations per share (as defined within this Quarterly Report on Form 10-Q), 25 % of the target will be based on total revenues of the Company and 50 % of the target will be based on operational performance goals, including management of capital structure; evaluation and pursuit of accretive transactions; management of labor costs and improvement of employee productivity; enhancement of environmental, social and governance reporting; and enhancement of internal business intelligence tools. At March 31, 2023, the range of potential aggregate payouts under the 2023 Incentive Plan was $ 0 - $ 27.1 million. Based on performance through March 31, 2023 , the Company has accrued approximately $ 4.2 million as a liability for potential executive incentive compensation payments under the 2023 Incentive Plan, which is included in accounts payable and other liabilities in the Company’s consolidated balance sheet as of March 31, 2023 and in general and administrative expenses in the Company’s consolidated statement of operations for the three months ended March 31, 2023 . Approximately 25 % of target awards under the 2023 Incentive Plan, if any, will be paid in cash, and 75 % will be issued in common shares under the Company’s 2014 Omnibus Incentive Plan, approximately two-thirds of which will be unrestricted and one-third of which will vest in December 2024. Under the incentive plan for 2022 (the “2022 Incentive Plan”), the Company recorded approximately $ 3.7 million in general and administrative expenses in its consolidated statement of operations for the three months ended March 31, 2022. Share-Based Compensation Awards The following table sets forth information pertaining to the share-based compensation issued under the 2022 Incentive Plan and the incentive plan for 2021 (the “2021 Incentive Plan”). 2022 Incentive 2021 Incentive Period common shares issued First Quarter 2023 First Quarter 2022 Common shares earned under each incentive plan 935,189 868,079 Common shares surrendered on issuance date to 263,026 245,597 Common shares earned and issued under each 672,163 622,482 Average of the high and low stock price on issuance date $ 16.70 $ 17.79 Total share-based compensation earned, including the $ 15.6 (1) $ 15.4 (2) Of the total common shares earned and issued, total 360,176 338,032 Of the total common shares earned and issued, total 311,987 284,450 Restricted common shares vesting date December 8, 2023 December 9, 2022 Common shares surrendered on vesting date to satisfy n/a 114,147 (1) Of the total 2022 share-based compensation, approximately $ 12.5 million was recorded as a liability as of December 31, 2022 and is included in accounts payable and other liabilities in the Company’s consolidated balance sheet at December 31, 2022. Another $ 2.6 million, which is subject to vesting on December 8, 2023 and excludes any restricted shares forfeited or vested prior to that date, will be recognized as share-based compensation expense proportionately throughout 2023. For the three months ended March 31, 2023 , the Company recognized approximately $ 0.7 million of share-based compensation expense related to restricted share awards. (2) Of the total 2021 share-based compensation, approximately $ 2.5 million, which vested on December 9, 2022, was recognized as share-based compensation expense proportionately throughout 2022. For the three months ended March 31, 2022 , the Company recognized approximately $ 0.6 million of share-based compensation expense related to restricted share awards. Additionally, in conjunction with the appointment of five new officers of the Company on April 1, 2020, the Company issued to the new officer group a total of approximately 200,000 restricted common shares with an aggregate grant date fair value of approximately $ 1.8 million. For each grantee, the restricted shares vested on March 31, 2023 . The expense associated with the awards was amortized over the 3 -year vesting period. For the three months ended March 31, 2023 and 2022, the Company recognized approximately $ 0.1 million of share-based compensation expense in each period related to these awards. Upon vesting on March 31, 2023, approximately 83,000 shares were surrendered to satisfy tax withholding obligations. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 9. Subsequent Events On April 17, 2023, the Company paid approximately $ 18.3 million, or $ 0.08 per common share, in distributions to shareholders of record as of March 31, 2023 . On April 18, 2023 , the Company declared a monthly cash distribution of $ 0.08 per common share. The distribution is payable on May 15, 2023 , to shareholders of record as of April 28, 2023 . |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Organization | Organization Apple Hospitality REIT, Inc., formed in November 2007 as a Virginia corporation, together with its wholly-owned subsidiaries (the “Company”), is a self-advised real estate investment trust (“REIT”) that invests in income-producing real estate, primarily in the lodging sector, in the United States (“U.S.”). The Company’s fiscal year end is December 31. The Company has no foreign operations or assets, and its operating structure includes only one reportable segment. The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated. Although the Company has interests in potential variable interest entities through its purchase commitments, it is not the primary beneficiary as the Company does not have any elements of power in the decision-making process of these entities; therefore, the Company does not consolidate the entities. As of March 31, 2023, the Company owned 220 hotels with an aggregate of 28,984 rooms located in 37 states. The Company’s common shares are listed on the New York Stock Exchange (“NYSE”) under the ticker symbol “APLE.” |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with the rules and regulations for reporting on Form 10-Q. Accordingly, they do not include all of the information required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These unaudited financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Form 10-K”). Operating results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the twelve-month period ending December 31, 2023 . |
Use of Estimates | Use of Estimates The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Net Income Per Common Share | Net Income Per Common Share Basic net income per common share is computed based upon the weighted average number of shares outstanding during the period. Diluted net income per common share is calculated after giving effect to all potential common shares that were dilutive and outstanding for the period. Basic and diluted net income per common share were the same for each of the periods presented. |
Accounting Standards Recently Adopted |
Investment in Real Estate (Tabl
Investment in Real Estate (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Real Estate [Abstract] | |
Schedule of Investment in Real Estate | The Company’s investment in real estate consisted of the following (in thousands): March 31, December 31, 2023 2022 Land $ 802,625 $ 802,625 Building and improvements 4,667,363 4,656,343 Furniture, fixtures and equipment 529,342 522,082 Finance ground lease assets 102,084 102,084 Franchise fees 20,081 19,925 6,121,495 6,103,059 Less accumulated depreciation and amortization ( 1,537,998 ) ( 1,492,097 ) Investment in real estate, net $ 4,583,497 $ 4,610,962 |
Schedule of Hotel Acquisitions | During the year ended December 31, 2022, the Company acquired two hotels. The following table sets forth the location, brand, manager, date acquired, number of rooms and gross purchase price, excluding transaction costs, for each hotel. All dollar amounts are in thousands. City State Brand Manager Date Rooms Gross Louisville KY AC Hotels Concord 10/25/2022 156 $ 51,000 Pittsburgh PA AC Hotels Concord 10/25/2022 134 34,000 290 $ 85,000 |
Schedule of Purchase Contract Outstanding | The following table summarizes the location, brand, date of purchase contract, expected number of rooms, refundable (if the seller does not meet its obligations under the contract) deposits paid and gross purchase price for each of the contracts outstanding at March 31, 2023. All dollar amounts are in thousands. Location Brand Date of Rooms Refundable Gross Madison, WI (1) Embassy Suites 7/27/2021 260 $ 893 $ 78,598 Cleveland, OH Courtyard 2/27/2023 154 500 31,000 414 $ 1,393 $ 109,598 (1) This hotel is currently under development. The table shows the expected number of rooms upon hotel completion and the expected franchise brand. Assuming all conditions to closing are met, the purchase of this hotel is expected to occur in early 2024. If the seller meets all of the conditions to closing, the Company is obligated to specifically perform under the contract. As this property is under development, at this time, the seller has not met all of the conditions to closing. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Tables [Line Items] | |
Schedule of Future Minimum Debt Payments | The aggregate amounts of principal payable under the Company’s total debt obligations as of March 31, 2023 (including the Revolving Credit Facility (if any) (as defined below), term loans, senior notes and mortgage debt), for the remainder of this fiscal year, each of the next four fiscal years and thereafter are as follows (in thousands): 2023 (April - December) $ 56,645 2024 113,597 2025 245,140 2026 115,149 2027 278,602 Thereafter 616,014 1,425,147 Unamortized fair value adjustment of assumed debt 776 Unamortized debt issuance costs ( 8,244 ) Total $ 1,417,679 |
Schedule of Total Fixed-Rate and Variable Rate Debt | The Company uses interest rate swaps to manage its interest rate risk on a portion of its variable-rate debt. Throughout the terms of these interest rate swaps, the Company pays a fixed rate of interest and receives a floating rate of interest equal to the annual Secured Overnight Financing Rate (“SOFR”) for a one-month term (“one-month SOFR”) plus a 0.10 % SOFR spread adjustment . The swaps are designed to effectively fix the interest payments on variable-rate debt instruments. See Note 5 for more information on the interest rate swap agreements. The Company’s total fixed-rate and variable-rate debt, after giving effect to its interest rate swaps in effect at March 31, 2023 and December 31, 2022, is set forth below. All dollar amounts are in thousands. March 31, Percentage December 31, Percentage Fixed-rate debt (1) $ 1,109,647 78 % $ 1,149,215 84 % Variable-rate debt 315,500 22 % 225,000 16 % Total $ 1,425,147 $ 1,374,215 Weighted-average interest rate of debt 4.30 % 3.93 % (1) Fixed-rate debt includes the portion of variable-rate debt where the interest payments have been effectively fixed by interest rate swaps as of the respective balance sheet date. See Note 5 for more information on the interest rate swap agreements. |
Summary [Member] | |
Debt Tables [Line Items] | |
Schedule of Long-term Debt Instruments | As of March 31, 2023 and December 31, 2022, the Company’s debt consisted of the following (in thousands): March 31, December 31, Revolving credit facility $ 40,500 $ - Term loans and senior notes, net 1,087,866 1,037,384 Mortgage debt, net 289,313 328,865 Debt, net $ 1,417,679 $ 1,366,249 |
Credit Facilities [Member] | |
Debt Tables [Line Items] | |
Schedule of Long-term Debt Instruments | As of March 31, 2023 and December 31, 2022, the details of the Company’s unsecured credit facilities were as set forth in the table below. All dollar amounts are in thousands. Outstanding Balance Interest Rate Maturity March 31, 2023 December 31, 2022 Revolving credit facility (1) SOFR + 0.10 % + 1.40 % - 2.25 % 7/25/2026 $ 40,500 $ - Term loans and senior notes $275 million term loan SOFR + 0.10 % + 1.35 % - 2.20 % 7/25/2027 275,000 275,000 $300 million term loan SOFR + 0.10 % + 1.35 % - 2.20 % 1/31/2028 300,000 250,000 $50 million term loan SOFR + 0.10 % + 1.35 % - 2.20 % 8/2/2023 50,000 50,000 $175 million term loan SOFR + 0.10 % + 1.65 % - 2.50 % 8/2/2025 175,000 175,000 2017 $85 million term loan SOFR + 0.10 % + 1.30 % - 2.10 % 7/25/2024 85,000 85,000 2019 $85 million term loan SOFR + 0.10 % + 1.70 % - 2.55 % 12/31/2029 85,000 85,000 $50 million senior notes 3.60 % - 4.35 % 3/31/2030 50,000 50,000 $75 million senior notes 4.88 % - 5.63 % 6/2/2029 75,000 75,000 Term loans and senior notes at stated 1,095,000 1,045,000 Unamortized debt issuance costs ( 7,134 ) ( 7,616 ) Term loans and senior notes, net 1,087,866 1,037,384 Credit facilities, net (1) $ 1,128,366 $ 1,037,384 Weighted-average interest rate (2) 4.39 % 3.92 % (1) Excludes unamortized debt issuance costs related to the Revolving Credit Facility totaling approximately $ 4.4 million and $ 4.8 million as of March 31, 2023 and December 31, 2022 , respectively, which are included in other assets, net in the Company’s consolidated balance sheets. (2) Interest rate represents the weighted-average effective annual interest rate at the balance sheet date which includes the effect of interest rate swaps in effect on $ 695.0 million of the outstanding variable-rate debt as of March 31, 2023 and December 31, 2022. See Note 5 for more information on the interest rate swap agreements. The one-month SOFR on March 31, 2023 and December 31, 2022 was 4.80 % and 4.36 %, respectively. |
Mortgage Debt [Member] | |
Debt Tables [Line Items] | |
Schedule of Long-term Debt Instruments | As of March 31, 2023, the Company had approximately $ 289.6 million in outstanding mortgage debt secured by 15 properties with maturity dates ranging from August 2024 to May 2038, stated interest rates ranging from 3.40 % to 4.46 % and effective interest rates ranging from 3.40 % to 4.37 %. The loans generally provide for monthly payments of principal and interest on an amortized basis and defeasance or prepayment penalties if prepaid. The following table sets forth the hotel properties securing each loan, the interest rate, loan assumption or origination date, maturity date, the principal amount assumed or originated, and the outstanding balance prior to any fair value adjustments or debt issuance costs as of March 31, 2023 and December 31, 2022 for each of the Company’s mortgage debt obligations. All dollar amounts are in thousands. Location Brand Interest (1) Loan Maturity Principal Outstanding Outstanding Miami, FL Homewood Suites 4.02 % 3/1/2014 (2) $ 16,677 $ - $ 12,440 Huntsville, AL Homewood Suites 4.12 % 3/1/2014 (3) 8,306 - 6,193 Prattville, AL Courtyard 4.12 % 3/1/2014 (3) 6,596 - 4,918 San Diego, CA Residence Inn 3.97 % 3/1/2014 (4) 18,600 - 13,827 New Orleans, LA Homewood Suites 4.36 % 7/17/2014 8/11/2024 27,000 20,947 21,161 Westford, MA Residence Inn 4.28 % 3/18/2015 4/11/2025 10,000 7,946 8,024 Denver, CO Hilton Garden Inn 4.46 % 9/1/2016 6/11/2025 34,118 28,134 28,400 Oceanside, CA Courtyard 4.28 % 9/1/2016 10/1/2025 13,655 11,942 12,019 Omaha, NE Hilton Garden Inn 4.28 % 9/1/2016 10/1/2025 22,681 19,836 19,963 Boise, ID Hampton 4.37 % 5/26/2016 6/11/2026 24,000 21,065 21,194 Burbank, CA Courtyard 3.55 % 11/3/2016 12/1/2026 25,564 21,129 21,326 San Diego, CA Courtyard 3.55 % 11/3/2016 12/1/2026 25,473 21,054 21,250 San Diego, CA Hampton 3.55 % 11/3/2016 12/1/2026 18,963 15,673 15,819 Burbank, CA SpringHill Suites 3.94 % 3/9/2018 4/1/2028 28,470 24,855 25,057 Santa Ana, CA Courtyard 3.94 % 3/9/2018 4/1/2028 15,530 13,558 13,668 Richmond, VA Courtyard 3.40 % 2/12/2020 3/11/2030 14,950 14,066 14,144 Richmond, VA Residence Inn 3.40 % 2/12/2020 3/11/2030 14,950 14,066 14,144 Portland, ME Residence Inn 3.43 % 3/2/2020 3/1/2032 33,500 30,500 30,500 San Jose, CA Homewood Suites 4.22 % 12/22/2017 5/1/2038 30,000 24,876 25,168 $ 389,033 289,647 329,215 Unamortized fair value adjustment of 776 819 Unamortized debt issuance costs ( 1,110 ) ( 1,169 ) Total $ 289,313 $ 328,865 (1) Interest rates are the rates per the loan agreement. For loans assumed, the Company adjusted the interest rates per the loan agreement to market rates and is amortizing the adjustments to interest expense over the life of the loan. (2) Loan was repaid in full on January 3, 2023. (3) Loan was repaid in full on February 6, 2023. (4) Loan was repaid in full on March 6, 2023. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Interest Rate Swap Agreements | The following table sets forth information for each of the Company’s interest rate swap agreements outstanding as of March 31, 2023 and December 31, 2022. All dollar amounts are in thousands. Fair Value Asset (Liability) Notional Amount at Origination Effective Maturity Swap Fixed March 31, December 31, Active interest rate swaps designated as cash flow hedges at March 31, 2023: $ 75,000 5/31/2017 7/31/2017 6/30/2024 1.95 % $ 2,409 $ 3,026 10,000 8/10/2017 8/10/2017 6/30/2024 2.02 % 311 386 50,000 6/1/2018 1/31/2019 6/30/2025 2.88 % 1,254 1,655 50,000 7/2/2019 7/5/2019 7/18/2024 1.64 % 1,844 2,298 50,000 8/21/2019 8/23/2019 8/18/2024 1.31 % 2,167 2,675 50,000 8/21/2019 8/23/2019 8/30/2024 1.32 % 2,198 2,703 85,000 12/31/2019 12/31/2019 12/31/2029 1.87 % 7,435 9,511 25,000 12/6/2018 1/31/2020 6/30/2025 2.74 % 701 909 50,000 12/7/2018 5/18/2020 1/31/2024 2.71 % 877 1,163 75,000 8/21/2019 5/18/2020 5/18/2025 1.26 % 4,365 5,225 75,000 8/21/2019 5/18/2021 5/18/2026 1.29 % 5,467 6,506 50,000 3/17/2023 3/20/2023 3/18/2028 3.50 % ( 126 ) - 50,000 3/17/2023 3/20/2023 3/20/2028 3.49 % ( 127 ) - 695,000 28,775 36,057 Matured interest rate swap at March 31, 2023: $ 100,000 4/7/2016 9/30/2016 3/31/2023 1.30 % - 824 $ 28,775 $ 36,881 |
Derivative Instruments, Gain (Loss) Recognized | The following table presents the effect of derivative instruments in cash flow hedging relationships in the Company’s consolidated statements of operations and comprehensive income for the three months ended March 31, 2023 and 2022 (in thousands): Net Unrealized Gain (Loss) Net Unrealized Gain (Loss) Reclassified Three Months Ended March 31, Three Months Ended March 31, 2023 2022 2023 2022 Interest rate derivatives in cash flow $ ( 3,091 ) $ 24,464 $ 5,015 $ ( 2,755 ) |
Compensation Plans (Tables)
Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Information Pertaining to Share-based Compensation Issued | The following table sets forth information pertaining to the share-based compensation issued under the 2022 Incentive Plan and the incentive plan for 2021 (the “2021 Incentive Plan”). 2022 Incentive 2021 Incentive Period common shares issued First Quarter 2023 First Quarter 2022 Common shares earned under each incentive plan 935,189 868,079 Common shares surrendered on issuance date to 263,026 245,597 Common shares earned and issued under each 672,163 622,482 Average of the high and low stock price on issuance date $ 16.70 $ 17.79 Total share-based compensation earned, including the $ 15.6 (1) $ 15.4 (2) Of the total common shares earned and issued, total 360,176 338,032 Of the total common shares earned and issued, total 311,987 284,450 Restricted common shares vesting date December 8, 2023 December 9, 2022 Common shares surrendered on vesting date to satisfy n/a 114,147 (1) Of the total 2022 share-based compensation, approximately $ 12.5 million was recorded as a liability as of December 31, 2022 and is included in accounts payable and other liabilities in the Company’s consolidated balance sheet at December 31, 2022. Another $ 2.6 million, which is subject to vesting on December 8, 2023 and excludes any restricted shares forfeited or vested prior to that date, will be recognized as share-based compensation expense proportionately throughout 2023. For the three months ended March 31, 2023 , the Company recognized approximately $ 0.7 million of share-based compensation expense related to restricted share awards. (2) Of the total 2021 share-based compensation, approximately $ 2.5 million, which vested on December 9, 2022, was recognized as share-based compensation expense proportionately throughout 2022. For the three months ended March 31, 2022 , the Company recognized approximately $ 0.6 million of share-based compensation expense related to restricted share awards. Additionally, in conjunction with the appointment of five new officers of the Company on April 1, 2020, the Company issued to the new officer group a total of approximately 200,000 restricted common shares with an aggregate grant date fair value of approximately $ 1.8 million. For each grantee, the restricted shares vested on March 31, 2023 . The expense associated with the awards was amortized over the 3 -year vesting period. For the three months ended March 31, 2023 and 2022, the Company recognized approximately $ 0.1 million of share-based compensation expense in each period related to these awards. Upon vesting on March 31, 2023, approximately 83,000 shares were surrendered to satisfy tax withholding obligations. |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2023 State Segment Room Hotel | |
Organization and Summary of Significant Accounting Policies (Details) [Line Items] | |
Number of reportable segments | Segment | 1 |
Number of hotels | Hotel | 220 |
Aggregate number of hotel rooms | Room | 28,984 |
Number of states in which hotels are located | State | 37 |
Investment In Real Estate - Sch
Investment In Real Estate - Schedule of Investment in Real Estate (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Property Plant And Equipment [Line Items] | ||
Real estate investment property, at cost | $ 6,121,495 | $ 6,103,059 |
Less accumulated depreciation and amortization | (1,537,998) | (1,492,097) |
Investment in real estate, net | 4,583,497 | 4,610,962 |
Land [Member] | ||
Property Plant And Equipment [Line Items] | ||
Real estate investment property, at cost | 802,625 | 802,625 |
Building and Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Real estate investment property, at cost | 4,667,363 | 4,656,343 |
Furniture, Fixtures and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Real estate investment property, at cost | 529,342 | 522,082 |
Finance Ground Lease Assets [Member] | ||
Property Plant And Equipment [Line Items] | ||
Real estate investment property, at cost | 102,084 | 102,084 |
Franchise Fees [Member] | ||
Property Plant And Equipment [Line Items] | ||
Real estate investment property, at cost | $ 20,081 | $ 19,925 |
Investment in Real Estate - Add
Investment in Real Estate - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Oct. 31, 2022 USD ($) | Mar. 31, 2023 USD ($) Hotel State Room | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) Room | |
Investment In Real Estate [Line Items] | ||||
Number of hotels | Hotel | 220 | |||
Proceeds from term loans and senior notes | $ 50,000 | $ 50,000 | ||
Term loan facility, maximum borrowing capacity | $ 575,000 | |||
Aggregate number of hotel rooms | Room | 28,984 | |||
Number of states in which hotels are located | State | 37 | |||
Total revenue | $ 311,454 | $ 260,478 | ||
Operating income (loss) | 49,247 | $ 32,835 | ||
Finance lease liabilities | $ 111,994 | $ 112,006 | ||
Hotel Acquisitions [Member] | ||||
Investment In Real Estate [Line Items] | ||||
Aggregate number of hotel rooms | Room | 290 | |||
Purchase price | $ 85,000 | |||
Hotels Under Purchase Contract [Member] | ||||
Investment In Real Estate [Line Items] | ||||
Number of outstanding contracts | Hotel | 2 | |||
Purchase price | $ 109,598 | |||
Purchase contract gross purchase price | $ 109,600 | |||
Number of existing hotels to be acquired | Hotel | 1 | |||
Hotels Under Purchase Contract [Member] | Embassy Suites Madison, WI [Member] | ||||
Investment In Real Estate [Line Items] | ||||
Purchase price | $ 78,598 |
Investment in Real Estate - S_2
Investment in Real Estate - Schedule of Hotel Acquisitions (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) Room | Mar. 31, 2023 Room | |
Real Estate Properties [Line Items] | ||
Rooms | 28,984 | |
Hotel Acquisitions [Member] | ||
Real Estate Properties [Line Items] | ||
Rooms | 290 | |
Gross Purchase Price | $ | $ 85,000 | |
AC Hotels Louisville, KY [Member] | Hotel Acquisitions [Member] | ||
Real Estate Properties [Line Items] | ||
Manager | Concord | |
Date Acquired | Oct. 25, 2022 | |
Rooms | 156 | |
Gross Purchase Price | $ | $ 51,000 | |
AC Hotels Pittsburgh, PA [Member] | Hotel Acquisitions [Member] | ||
Real Estate Properties [Line Items] | ||
Manager | Concord | |
Date Acquired | Oct. 25, 2022 | |
Rooms | 134 | |
Gross Purchase Price | $ | $ 34,000 |
Investment in Real Estate - S_3
Investment in Real Estate - Schedule of Purchase Contract Outstanding (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) Room | |
Real Estate Properties [Line Items] | |
Rooms | Room | 28,984 |
Hotels Under Purchase Contract [Member] | |
Real Estate Properties [Line Items] | |
Rooms | Room | 414 |
Refundable Deposits | $ 1,393 |
Gross Purchase Price | $ 109,598 |
Hotels Under Purchase Contract [Member] | Embassy Suites Madison W I [Member] | |
Real Estate Properties [Line Items] | |
Date of Purchase Contract | Jul. 27, 2021 |
Rooms | Room | 260 |
Refundable Deposits | $ 893 |
Gross Purchase Price | $ 78,598 |
Hotels Under Purchase Contract [Member] | Courtyard Cleveland, OH [Member] | |
Real Estate Properties [Line Items] | |
Date of Purchase Contract | Feb. 27, 2023 |
Rooms | Room | 154 |
Refundable Deposits | $ 500 |
Gross Purchase Price | $ 31,000 |
Dispositions - Additional Infor
Dispositions - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) Hotel Room | Mar. 31, 2023 Hotel Room | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Number Of Real Estate Properties | Hotel | 220 | ||
Number of hotels | Hotel | 220 | ||
Rooms | Room | 28,984 | ||
Hotels Sold [Member] | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Number Of Real Estate Properties | Hotel | 1 | 0 | |
Number of hotels | Hotel | 1 | 0 | |
Rooms | Room | 55 | ||
Sale of Real Estate Assets, Gross Sales Price | $ | $ 8.5 | ||
Gain (Loss) on Disposition of Assets | $ | 1.8 | ||
Real Estate Investment, Carrying Value | $ | $ 6.5 | ||
Hotels Sold [Member] | Maximum [Member] | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Operating income, excluding gain (loss) on sale of real estate | $ | $ 0.1 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
Revolving credit facility | $ 40,500 | |
Term loans and senior notes, net | 1,087,866 | $ 1,037,384 |
Mortgage debt, net | 289,313 | 328,865 |
Debt, net | $ 1,417,679 | $ 1,366,249 |
Debt - Schedule of Future Minim
Debt - Schedule of Future Minimum Debt Payments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
2023 (April - December) | $ 56,645 | |
2024 | 113,597 | |
2025 | 245,140 | |
2026 | 115,149 | |
2027 | 278,602 | |
Thereafter | 616,014 | |
Debt, gross | 1,425,147 | $ 1,374,215 |
Unamortized fair value adjustment of assumed debt | 776 | |
Unamortized debt issuance costs | (8,244) | |
Debt, net | $ 1,417,679 | $ 1,366,249 |
Debt - Schedule of Total Fixed-
Debt - Schedule of Total Fixed-Rate and Variable Rate Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |||
Fixed-rate debt | [1] | $ 1,109,647 | $ 1,149,215 |
Variable-rate debt | 315,500 | 225,000 | |
Debt, gross | $ 1,425,147 | $ 1,374,215 | |
Weighted-average interest rate of debt | 4.30% | 3.93% | |
Fixed-rate debt, Percentage | [1] | 78% | 84% |
Variable-rate debt, Percentage | 22% | 16% | |
[1] Fixed-rate debt includes the portion of variable-rate debt where the interest payments have been effectively fixed by interest rate swaps as of the respective balance sheet date. See Note 5 for more information on the interest rate swap agreements. |
Debt - Additional Information (
Debt - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 8 Months Ended | |||||||||||
Dec. 31, 2019 USD ($) Loan | Jan. 29, 2019 USD ($) | Jul. 25, 2017 USD ($) Loan | Oct. 31, 2022 USD ($) | Mar. 31, 2023 USD ($) Hotel_Property | Mar. 31, 2023 USD ($) | Jan. 17, 2023 USD ($) | Dec. 31, 2022 USD ($) | Oct. 24, 2022 USD ($) | Jul. 25, 2022 USD ($) | Jun. 02, 2022 USD ($) | Mar. 16, 2020 USD ($) | Aug. 02, 2018 USD ($) | ||
Debt Details [Line Items] | ||||||||||||||
Term loan facility, maximum borrowing capacity | $ 575,000,000 | |||||||||||||
Debt instrument, description of variable rate basis | SOFR rate plus SOFR spread adjustment rate | |||||||||||||
Proceeds from term loans and senior notes | $ 50,000,000 | $ 50,000,000 | ||||||||||||
SOFR spread adjustment rate | 0.10% | 0.10% | ||||||||||||
Outstanding Balance | $ 1,425,147,000 | $ 1,425,147,000 | $ 1,374,215,000 | |||||||||||
2017 $85 Million Unsecured Term Loan Facility [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Number of term loans | Loan | 1 | |||||||||||||
Debt instrument, face amount | $ 85,000,000 | $ 85,000,000 | $ 85,000,000 | |||||||||||
Debt instrument, maturity date | Jul. 25, 2024 | |||||||||||||
Debt instrument, description of variable rate basis | one-month SOFR plus a 0.10% SOFR spread adjustment | |||||||||||||
SOFR spread adjustment rate | 0.10% | 0.10% | ||||||||||||
2019 $85 Million Unsecured Term Loan Facility [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Number of term loans | Loan | 1 | |||||||||||||
Debt instrument, face amount | $ 85,000,000 | $ 85,000,000 | $ 85,000,000 | |||||||||||
Debt instrument, maturity date | Dec. 31, 2029 | |||||||||||||
Debt instrument, description of variable rate basis | one-month SOFR plus a 0.10% SOFR spread adjustment | |||||||||||||
SOFR spread adjustment rate | 0.10% | 0.10% | ||||||||||||
$50 Million Senior Notes [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 50,000,000 | $ 50,000,000 | $ 50,000,000 | |||||||||||
Debt instrument, maturity date | Mar. 31, 2030 | |||||||||||||
$75 Million Senior Notes [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 75,000,000 | 75,000,000 | $ 75,000,000 | |||||||||||
Debt instrument, maturity date | Jun. 02, 2029 | |||||||||||||
$575 Million Unsecured Term Loan Facility [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 575,000,000 | 575,000,000 | ||||||||||||
Mortgage Debt [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Outstanding Balance | $ 289,600,000 | 289,600,000 | ||||||||||||
Number of hotel properties used to secure debt | Hotel_Property | 15 | |||||||||||||
Debt instrument, maturity date, description | maturity dates ranging from August 2024 to May 2038, | |||||||||||||
$225 Million Unsecured Term Loan Facility [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Term loan facility, maximum borrowing capacity | $ 225,000,000 | $ 225,000,000 | $ 225,000,000 | |||||||||||
Debt instrument, description of variable rate basis | one-month SOFR plus a 0.10% SOFR spread adjustment | |||||||||||||
SOFR spread adjustment rate | 0.10% | 0.10% | ||||||||||||
$225 Million Unsecured Term Loan Facility [Member] | $50 Million Unsecured Term Loan [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Debt instrument, face amount | 50,000,000 | |||||||||||||
Debt instrument, maturity date | Aug. 02, 2023 | |||||||||||||
Date of amended and restated credit facility | Aug. 02, 2018 | |||||||||||||
$225 Million Unsecured Term Loan Facility [Member] | $175 Million Unsecured Term Loan [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 175,000,000 | $ 175,000,000 | $ 100,000,000 | |||||||||||
Debt instrument, maturity date | Aug. 02, 2025 | |||||||||||||
Debt instrument, description | $100 million was funded on August 2, 2018, and the remaining $75 million was funded on January 29, 2019 (clauses (i) and (ii) are referred to together as the “$225 million term loan facility”) | |||||||||||||
Proceeds from term loans and senior notes | $ 75,000,000 | |||||||||||||
Credit Facilities [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Line of credit facility, covenant terms | The credit agreements governing the unsecured credit facilities (collectively, the “credit agreements”) contain mandatory prepayment requirements, customary affirmative and negative covenants, restrictions on certain investments and events of default, including the following financial and restrictive covenants (capitalized terms not defined below are defined in the credit agreements):•A ratio of Consolidated Total Indebtedness to Consolidated EBITDA (“Maximum Consolidated Leverage Ratio”) of not more than 7.25 to 1.00;•A ratio of Consolidated Secured Indebtedness to Consolidated Total Assets (“Maximum Secured Leverage Ratio”) of not more than 45%;•A minimum Consolidated Tangible Net Worth of approximately $3.4 billion plus an amount equal to 75% of the Net Cash Proceeds from issuances and sales of Equity Interests occurring after the Closing Date, July 25, 2022, subject to adjustment;•A ratio of Adjusted Consolidated EBITDA to Consolidated Fixed Charges (“Minimum Fixed Charge Coverage Ratio”) of not less than 1.50 to 1.00 for the trailing four full quarters;•A ratio of Unencumbered Adjusted NOI to Consolidated Implied Interest Expense for Consolidated Unsecured Indebtedness (“Minimum Unsecured Interest Coverage Ratio”) of not less than 2.00 to 1.00 for the trailing four full quarters;•A ratio of Consolidated Unsecured Indebtedness to Unencumbered Asset Value (“Maximum Unsecured Leverage Ratio”) of not more than 60% (subject to a higher level in certain circumstances); and•A ratio of Consolidated Secured Recourse Indebtedness to Consolidated Total Assets (“Maximum Secured Recourse Indebtedness”) of not more than 10%.The Company was in compliance with the applicable covenants at March 31, 2023. | |||||||||||||
Unsecured Credit Facility | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Minimum consolidated tangible net worth | $ 3,400,000,000 | $ 3,400,000,000 | ||||||||||||
Percentage of net cash proceeds from issuances and sales of equity interests | 75% | 75% | ||||||||||||
$1.2 Billion Credit Facility [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 1,200,000,000 | $ 1,200,000,000 | $ 1,200,000,000 | |||||||||||
Debt instrument, description of variable rate basis | one-month SOFR plus a 0.10% SOFR spread adjustment | |||||||||||||
SOFR spread adjustment rate | 0.10% | 0.10% | ||||||||||||
$1.2 Billion Credit Facility [Member] | $650 Million Revolving Credit Facility [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 650,000,000 | $ 650,000,000 | ||||||||||||
Line of credit facility, remaining borrowing capacity | $ 609,500,000 | 609,500,000 | ||||||||||||
Debt instrument extended maturity date | Jul. 25, 2026 | |||||||||||||
$1.2 Billion Credit Facility [Member] | $275 Million Term Loan Facility [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 275,000,000 | 275,000,000 | ||||||||||||
Debt instrument extended maturity date | Jul. 25, 2027 | |||||||||||||
$1.2 Billion Credit Facility [Member] | $300 Million Term Loan Facility [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Term loan facility, maximum borrowing capacity | $ 300,000,000 | 300,000,000 | ||||||||||||
Debt instrument extended maturity date | Jan. 31, 2028 | |||||||||||||
$1.2 Billion Credit Facility [Member] | $300 Million Term Loan Facility [Member] | Loan Funded At Closing [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 200,000,000 | |||||||||||||
$1.2 Billion Credit Facility [Member] | $300 Million Term Loan Facility [Member] | Delayed Draw Term Loan [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Debt instrument, description | $150 million delayed draw option until 180 days from closing), of which $200 million was funded at closing, $50 million was funded on October 24, 2022 and the remaining $50 million was funded on January 17, 2023 (clauses (ii) and (iii) are referred to together as the “$575 million term loan facility”) | |||||||||||||
Term loan facility, remaining available capacity | $ 150,000,000 | $ 150,000,000 | ||||||||||||
$1.2 Billion Credit Facility [Member] | $300 Million Term Loan Facility [Member] | Loans Funded On October Twenty Four Two Thousand Twenty Two [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 50,000,000 | |||||||||||||
$1.2 Billion Credit Facility [Member] | $300 Million Term Loan Facility [Member] | Loan Funded At January Seventeen Two Thousand Twenty Three [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 50,000,000 | |||||||||||||
Revolving Credit Facility [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Debt instrument, maturity date | [1] | Jul. 25, 2026 | ||||||||||||
SOFR spread adjustment rate | [1] | 0.10% | 0.10% | |||||||||||
Revolving Credit Facility [Member] | Prior To Refinancing [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 425,000,000 | |||||||||||||
Revolving Credit Facility [Member] | 2019 $85 Million Unsecured Term Loan Facility [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 425,000,000 | |||||||||||||
Minimum [Member] | 2017 $85 Million Unsecured Term Loan Facility [Member] | SOFR Interest Rate Margin [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Debt instrument, basis spread on variable rate | 1.30% | |||||||||||||
Minimum [Member] | 2019 $85 Million Unsecured Term Loan Facility [Member] | SOFR Interest Rate Margin [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Debt instrument, basis spread on variable rate | 1.70% | |||||||||||||
Minimum [Member] | $50 Million Senior Notes [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Note payable, fixed annual interest rate | 3.60% | 3.60% | ||||||||||||
Minimum [Member] | $75 Million Senior Notes [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Note payable, fixed annual interest rate | 4.88% | 4.88% | ||||||||||||
Minimum [Member] | Mortgage Debt [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Note payable, fixed annual interest rate | 3.40% | 3.40% | ||||||||||||
Effective interest rates | 3.40% | 3.40% | ||||||||||||
Minimum [Member] | $225 Million Unsecured Term Loan Facility [Member] | SOFR Interest Rate Margin [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Debt instrument, basis spread on variable rate | 1.35% | |||||||||||||
Minimum [Member] | Unsecured Credit Facility | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Ratio of adjusted consolidated EBITDA to consolidated fixed charges | 1.50 | 1.50 | ||||||||||||
Ratio of unencumbered adjusted NOI to consolidated implied interest expense | 2 | 2 | ||||||||||||
Minimum [Member] | $1.2 Billion Credit Facility [Member] | SOFR Interest Rate Margin [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Debt instrument, basis spread on variable rate | 1.35% | |||||||||||||
Minimum [Member] | $1.2 Billion Unsecured Credit Facility [Member] | $650 Million Revolving Credit Facility [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Line of credit facility, unused capacity, commitment fee percentage | 0.20% | |||||||||||||
Minimum [Member] | Revolving Credit Facility [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Debt instrument, basis spread on variable rate | [1] | 1.40% | ||||||||||||
Maximum [Member] | 2017 $85 Million Unsecured Term Loan Facility [Member] | SOFR Interest Rate Margin [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Debt instrument, basis spread on variable rate | 2.10% | |||||||||||||
Maximum [Member] | 2019 $85 Million Unsecured Term Loan Facility [Member] | SOFR Interest Rate Margin [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Debt instrument, basis spread on variable rate | 2.55% | |||||||||||||
Maximum [Member] | $50 Million Senior Notes [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Note payable, fixed annual interest rate | 4.35% | 4.35% | ||||||||||||
Maximum [Member] | $75 Million Senior Notes [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Note payable, fixed annual interest rate | 5.63% | 5.63% | ||||||||||||
Maximum [Member] | Mortgage Debt [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Note payable, fixed annual interest rate | 4.46% | 4.46% | ||||||||||||
Effective interest rates | 4.37% | 4.37% | ||||||||||||
Maximum [Member] | $225 Million Unsecured Term Loan Facility [Member] | SOFR Interest Rate Margin [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Debt instrument, basis spread on variable rate | 2.50% | |||||||||||||
Maximum [Member] | Unsecured Credit Facility | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Ratio of consolidated total indebtedness to consolidated EBITDA | 7.25 | 7.25 | ||||||||||||
Ratio of consolidated secured indebtedness to consolidated total assets | 45% | 45% | ||||||||||||
Ratio of un secured indebtedness to unencumbered asset value ("Maximum Unsecured Leverage Ratio") | 60% | 60% | ||||||||||||
Ratio of secured recourse indebtedness to consolidated total assets | 10% | 10% | ||||||||||||
Maximum [Member] | $1.2 Billion Credit Facility [Member] | SOFR Interest Rate Margin [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Debt instrument, basis spread on variable rate | 2.25% | |||||||||||||
Maximum [Member] | $1.2 Billion Unsecured Credit Facility [Member] | $650 Million Revolving Credit Facility [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Annual rate on unused facility fee | 0.25% | 0.25% | ||||||||||||
Maximum [Member] | Revolving Credit Facility [Member] | ||||||||||||||
Debt Details [Line Items] | ||||||||||||||
Debt instrument, basis spread on variable rate | [1] | 2.25% | ||||||||||||
[1] Excludes unamortized debt issuance costs related to the Revolving Credit Facility totaling approximately $ 4.4 million and $ 4.8 million as of March 31, 2023 and December 31, 2022 , respectively, which are included in other assets, net in the Company’s consolidated balance sheets. |
Debt - Schedule of Unsecured Cr
Debt - Schedule of Unsecured Credit Facilities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2022 | ||
Debt Instrument [Line Items] | |||
Outstanding Balance | $ 1,425,147 | $ 1,374,215 | |
Revolving credit facility outstanding balance | 40,500 | ||
Unamortized debt issuance costs | (8,244) | ||
Term loans and senior notes, net | 1,087,866 | 1,037,384 | |
Credit facilities, net | $ 1,417,679 | $ 1,366,249 | |
Weighted-average interest rate | 4.30% | 3.93% | |
SOFR spread adjustment rate | 0.10% | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate, Description | [1] | SOFR + 0.10% + 1.40% - 2.25% | |
Maturity Date | [1] | Jul. 25, 2026 | |
Revolving credit facility outstanding balance | [1] | $ 40,500 | |
SOFR spread adjustment rate | [1] | 0.10% | |
Revolving Credit Facility [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | [1] | 1.40% | |
Revolving Credit Facility [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | [1] | 2.25% | |
Million275 Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate, Description | SOFR + 0.10% + 1.35% - 2.20% | ||
Maturity Date | Jul. 25, 2027 | ||
Outstanding Balance | $ 275,000 | $ 275,000 | |
SOFR spread adjustment rate | 0.10% | ||
Million275 Term Loan [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | 1.35% | ||
Million275 Term Loan [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | 2.20% | ||
Million300 Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate, Description | SOFR + 0.10% + 1.35% - 2.20% | ||
Maturity Date | Jan. 31, 2028 | ||
Outstanding Balance | $ 300,000 | 250,000 | |
SOFR spread adjustment rate | 0.10% | ||
Million300 Term Loan [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | 1.35% | ||
Million300 Term Loan [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | 2.20% | ||
$50 Million Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate, Description | SOFR + 0.10% + 1.35% - 2.20% | ||
Maturity Date | Aug. 02, 2023 | ||
Outstanding Balance | $ 50,000 | 50,000 | |
SOFR spread adjustment rate | 0.10% | ||
$50 Million Term Loan [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | 1.35% | ||
$50 Million Term Loan [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | 2.20% | ||
$175 Million Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate, Description | SOFR + 0.10% + 1.65% - 2.50% | ||
Maturity Date | Aug. 02, 2025 | ||
Outstanding Balance | $ 175,000 | 175,000 | |
SOFR spread adjustment rate | 0.10% | ||
$175 Million Term Loan [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | 1.65% | ||
$175 Million Term Loan [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | 2.50% | ||
2017 $85 Million Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate, Description | SOFR + 0.10% + 1.30% - 2.10% | ||
Maturity Date | Jul. 25, 2024 | ||
Outstanding Balance | $ 85,000 | 85,000 | |
SOFR spread adjustment rate | 0.10% | ||
2017 $85 Million Term Loan [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | 1.30% | ||
2017 $85 Million Term Loan [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | 2.10% | ||
2019 $85 Million Unsecured Term Loan Facility [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate, Description | SOFR + 0.10% + 1.70% - 2.55% | ||
Maturity Date | Dec. 31, 2029 | ||
Outstanding Balance | $ 85,000 | 85,000 | |
SOFR spread adjustment rate | 0.10% | ||
2019 $85 Million Unsecured Term Loan Facility [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | 1.70% | ||
2019 $85 Million Unsecured Term Loan Facility [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | 2.55% | ||
$50 Million Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate, Description | 3.60% - 4.35% | ||
Maturity Date | Mar. 31, 2030 | ||
$50 Million Senior Notes [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3.60% | ||
$50 Million Senior Notes [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | 4.35% | ||
$75 Million Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate, Description | 4.88% - 5.63% | ||
Maturity Date | Jun. 02, 2029 | ||
Outstanding Balance | $ 75,000 | 75,000 | |
$75 Million Senior Notes [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | 4.88% | ||
$75 Million Senior Notes [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | 5.63% | ||
Term Loans and Senior Loans, Net [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding Balance | $ 1,095,000 | 1,045,000 | |
Unamortized debt issuance costs | (7,134) | (7,616) | |
Term loans and senior notes, net | 1,087,866 | 1,037,384 | |
Credit Facilities, Net [Member] | |||
Debt Instrument [Line Items] | |||
Credit facilities, net | [1] | $ 1,128,366 | $ 1,037,384 |
Weighted-average interest rate | [2] | 4.39% | 3.92% |
[1] Excludes unamortized debt issuance costs related to the Revolving Credit Facility totaling approximately $ 4.4 million and $ 4.8 million as of March 31, 2023 and December 31, 2022 , respectively, which are included in other assets, net in the Company’s consolidated balance sheets. Interest rate represents the weighted-average effective annual interest rate at the balance sheet date which includes the effect of interest rate swaps in effect on $ 695.0 million of the outstanding variable-rate debt as of March 31, 2023 and December 31, 2022. See Note 5 for more information on the interest rate swap agreements. The one-month SOFR on March 31, 2023 and December 31, 2022 was 4.80 % and 4.36 %, respectively. |
Debt - Schedule of Unsecured _2
Debt - Schedule of Unsecured Credit Facilities (Parentheticals) (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 | Jul. 25, 2022 |
Debt Details [Line Items] | |||
Debt issuance costs, net | $ 8,244,000 | ||
Outstanding Balance | $ 1,425,147,000 | $ 1,374,215,000 | |
S O F R Spread Adjustment Rate | 0.10% | ||
Secured Overnight Financing Rate (SOFR) [Member] | |||
Debt Details [Line Items] | |||
Debt Instrument, Basis of Variable Rate | 4.80% | 4.36% | |
Outstanding Variable-Rate Debt Effectively Fixed By Interest Rate Swaps [Member] | |||
Debt Details [Line Items] | |||
Derivative, notional amount | $ 695,000,000 | $ 695,000,000 | |
Revolving Credit Facilities [Member] | |||
Debt Details [Line Items] | |||
Debt issuance costs, net | 4,400,000 | $ 4,800,000 | |
$1.2 Billion Credit Facility [Member] | |||
Debt Details [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 1,200,000,000 | $ 1,200,000,000 | |
S O F R Spread Adjustment Rate | 0.10% |
Debt - Schedule of Mortgage Deb
Debt - Schedule of Mortgage Debt Obligations (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2022 | ||
Debt Instrument [Line Items] | |||
Outstanding Balance | $ 1,425,147 | $ 1,374,215 | |
Unamortized fair value adjustment of assumed debt | 776 | ||
Unamortized debt issuance costs | (8,244) | ||
Total | $ 289,313 | 328,865 | |
Homewood Suites Huntsville, AL [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | [1] | 4.12% | |
Loan Assumption or Origination Date | Mar. 01, 2014 | ||
Note payable, principal assumed or originated | [2] | $ 8,306 | |
Outstanding Balance | [2] | 6,193 | |
Courtyard Prattville, AL [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | [1] | 4.12% | |
Loan Assumption or Origination Date | Mar. 01, 2014 | ||
Note payable, principal assumed or originated | [2] | $ 6,596 | |
Outstanding Balance | [2] | 4,918 | |
Residence Inn San Diego, CA [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | [1] | 3.97% | |
Loan Assumption or Origination Date | Mar. 01, 2014 | ||
Note payable, principal assumed or originated | [3] | $ 18,600 | |
Outstanding Balance | [3] | 13,827 | |
Homewood Suites Miami, FL [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | [1] | 4.02% | |
Loan Assumption or Origination Date | Mar. 01, 2014 | ||
Note payable, principal assumed or originated | [4] | $ 16,677 | |
Outstanding Balance | [4] | 12,440 | |
Homewood Suites New Orleans, LA [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | [1] | 4.36% | |
Loan Assumption or Origination Date | Jul. 17, 2014 | ||
Maturity Date | Aug. 11, 2024 | ||
Note payable, principal assumed or originated | $ 27,000 | ||
Outstanding Balance | $ 20,947 | 21,161 | |
Residence Inn Westford, MA [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | [1] | 4.28% | |
Loan Assumption or Origination Date | Mar. 18, 2015 | ||
Maturity Date | Apr. 11, 2025 | ||
Note payable, principal assumed or originated | $ 10,000 | ||
Outstanding Balance | $ 7,946 | 8,024 | |
Hilton Garden Inn Denver, CO [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | [1] | 4.46% | |
Loan Assumption or Origination Date | Sep. 01, 2016 | ||
Maturity Date | Jun. 11, 2025 | ||
Note payable, principal assumed or originated | $ 34,118 | ||
Outstanding Balance | $ 28,134 | 28,400 | |
Courtyard Oceanside, CA [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | [1] | 4.28% | |
Loan Assumption or Origination Date | Sep. 01, 2016 | ||
Maturity Date | Oct. 01, 2025 | ||
Note payable, principal assumed or originated | $ 13,655 | ||
Outstanding Balance | $ 11,942 | 12,019 | |
Hilton Garden Inn Omaha, NE [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | [1] | 4.28% | |
Loan Assumption or Origination Date | Sep. 01, 2016 | ||
Maturity Date | Oct. 01, 2025 | ||
Note payable, principal assumed or originated | $ 22,681 | ||
Outstanding Balance | $ 19,836 | 19,963 | |
Hampton Boise, ID [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | [1] | 4.37% | |
Loan Assumption or Origination Date | May 26, 2016 | ||
Maturity Date | Jun. 11, 2026 | ||
Note payable, principal assumed or originated | $ 24,000 | ||
Outstanding Balance | $ 21,065 | 21,194 | |
Courtyard Burbank, CA [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | [1] | 3.55% | |
Loan Assumption or Origination Date | Nov. 03, 2016 | ||
Maturity Date | Dec. 01, 2026 | ||
Note payable, principal assumed or originated | $ 25,564 | ||
Outstanding Balance | $ 21,129 | 21,326 | |
Courtyard San Diego, CA [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | [1] | 3.55% | |
Loan Assumption or Origination Date | Nov. 03, 2016 | ||
Maturity Date | Dec. 01, 2026 | ||
Note payable, principal assumed or originated | $ 25,473 | ||
Outstanding Balance | $ 21,054 | 21,250 | |
Hampton San Diego, CA [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | [1] | 3.55% | |
Loan Assumption or Origination Date | Nov. 03, 2016 | ||
Maturity Date | Dec. 01, 2026 | ||
Note payable, principal assumed or originated | $ 18,963 | ||
Outstanding Balance | $ 15,673 | 15,819 | |
SpringHill Suites Burbank, CA [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | [1] | 3.94% | |
Loan Assumption or Origination Date | Mar. 09, 2018 | ||
Maturity Date | Apr. 01, 2028 | ||
Note payable, principal assumed or originated | $ 28,470 | ||
Outstanding Balance | $ 24,855 | 25,057 | |
Courtyard Santa Ana, CA [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | [1] | 3.94% | |
Loan Assumption or Origination Date | Mar. 09, 2018 | ||
Maturity Date | Apr. 01, 2028 | ||
Note payable, principal assumed or originated | $ 15,530 | ||
Outstanding Balance | $ 13,558 | 13,668 | |
Courtyard Richmond, VA [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | [1] | 3.40% | |
Loan Assumption or Origination Date | Feb. 12, 2020 | ||
Maturity Date | Mar. 11, 2030 | ||
Note payable, principal assumed or originated | $ 14,950 | ||
Outstanding Balance | $ 14,066 | 14,144 | |
Residence Inn Richmond, VA [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | [1] | 3.40% | |
Loan Assumption or Origination Date | Feb. 12, 2020 | ||
Maturity Date | Mar. 11, 2030 | ||
Note payable, principal assumed or originated | $ 14,950 | ||
Outstanding Balance | $ 14,066 | 14,144 | |
Residence Inn Portland, ME [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | [1] | 3.43% | |
Loan Assumption or Origination Date | Mar. 02, 2020 | ||
Maturity Date | Mar. 01, 2032 | ||
Note payable, principal assumed or originated | $ 33,500 | ||
Outstanding Balance | $ 30,500 | 30,500 | |
Homewood Suites San Jose, CA [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | [1] | 4.22% | |
Loan Assumption or Origination Date | Dec. 22, 2017 | ||
Maturity Date | May 01, 2038 | ||
Note payable, principal assumed or originated | $ 30,000 | ||
Outstanding Balance | 24,876 | 25,168 | |
Aggregate Properties [Member] | |||
Debt Instrument [Line Items] | |||
Note payable, principal assumed or originated | 389,033 | ||
Outstanding Balance | 289,647 | 329,215 | |
Unamortized fair value adjustment of assumed debt | 776 | 819 | |
Unamortized debt issuance costs | $ (1,110) | $ (1,169) | |
[1] Interest rates are the rates per the loan agreement. For loans assumed, the Company adjusted the interest rates per the loan agreement to market rates and is amortizing the adjustments to interest expense over the life of the loan. Loan was repaid in full on February 6, 2023. Loan was repaid in full on March 6, 2023. Loan was repaid in full on January 3, 2023. |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Additional Information (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 USD ($) Derivative_Instrument | Dec. 31, 2022 USD ($) | |
Fair Value of Financial Instruments [Line Items] | ||
Long-term debt, fair value | $ 1,400,000 | $ 1,300,000 |
Long-term debt, carrying value | 1,417,679 | $ 1,366,249 |
Interest rate cash flow hedge gain (loss) to be reclassified during next 12 months, net | $ 16,600 | |
Secured Overnight Financing Rate (SOFR) [Member] | ||
Fair Value of Financial Instruments [Line Items] | ||
Variable Rate | 0.10% | |
Interest Rate, Description | one-month SOFR plus a 0.10% SOFR spread adjustment | |
Designated as Hedging Instrument [Member] | ||
Fair Value of Financial Instruments [Line Items] | ||
Number of interest rate swap agreements | Derivative_Instrument | 13 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Schedule of Interest Rate Swap Agreements (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Fair Value of Financial Instruments Schedule of Interest Rate Swap Agreements [Line Items] | ||
Fair value asset (liability) | $ 28,775 | $ 36,881 |
Designated as Hedging Instrument [Member] | ||
Fair Value of Financial Instruments Schedule of Interest Rate Swap Agreements [Line Items] | ||
Derivative, notional amount | 695,000 | |
Fair value asset (liability) | 28,775 | 36,057 |
Interest Rate Swap #1 [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value of Financial Instruments Schedule of Interest Rate Swap Agreements [Line Items] | ||
Derivative, notional amount | $ 75,000 | |
Origination Date | May 31, 2017 | |
Effective Date | Jul. 31, 2017 | |
Maturity date | Jun. 30, 2024 | |
Swap fixed interest rate | 1.95% | |
Fair value asset (liability) | $ 2,409 | 3,026 |
Interest Rate Swap #2 [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value of Financial Instruments Schedule of Interest Rate Swap Agreements [Line Items] | ||
Derivative, notional amount | $ 10,000 | |
Origination Date | Aug. 10, 2017 | |
Effective Date | Aug. 10, 2017 | |
Maturity date | Jun. 30, 2024 | |
Swap fixed interest rate | 2.02% | |
Fair value asset (liability) | $ 311 | 386 |
Interest Rate Swap #3 [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value of Financial Instruments Schedule of Interest Rate Swap Agreements [Line Items] | ||
Derivative, notional amount | $ 50,000 | |
Origination Date | Jun. 01, 2018 | |
Effective Date | Jan. 31, 2019 | |
Maturity date | Jun. 30, 2025 | |
Swap fixed interest rate | 2.88% | |
Fair value asset (liability) | $ 1,254 | 1,655 |
Interest Rate Swap #4 [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value of Financial Instruments Schedule of Interest Rate Swap Agreements [Line Items] | ||
Derivative, notional amount | $ 50,000 | |
Origination Date | Jul. 02, 2019 | |
Effective Date | Jul. 05, 2019 | |
Maturity date | Jul. 18, 2024 | |
Swap fixed interest rate | 1.64% | |
Fair value asset (liability) | $ 1,844 | 2,298 |
Interest Rate Swap #5 [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value of Financial Instruments Schedule of Interest Rate Swap Agreements [Line Items] | ||
Derivative, notional amount | $ 50,000 | |
Origination Date | Aug. 21, 2019 | |
Effective Date | Aug. 23, 2019 | |
Maturity date | Aug. 18, 2024 | |
Swap fixed interest rate | 1.31% | |
Fair value asset (liability) | $ 2,167 | 2,675 |
Interest Rate Swap #6 [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value of Financial Instruments Schedule of Interest Rate Swap Agreements [Line Items] | ||
Derivative, notional amount | $ 50,000 | |
Origination Date | Aug. 21, 2019 | |
Effective Date | Aug. 23, 2019 | |
Maturity date | Aug. 30, 2024 | |
Swap fixed interest rate | 1.32% | |
Fair value asset (liability) | $ 2,198 | 2,703 |
Interest Rate Swap #7 [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value of Financial Instruments Schedule of Interest Rate Swap Agreements [Line Items] | ||
Derivative, notional amount | $ 85,000 | |
Origination Date | Dec. 31, 2019 | |
Effective Date | Dec. 31, 2019 | |
Maturity date | Dec. 31, 2029 | |
Swap fixed interest rate | 1.87% | |
Fair value asset (liability) | $ 7,435 | 9,511 |
Interest Rate Swap #8 [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value of Financial Instruments Schedule of Interest Rate Swap Agreements [Line Items] | ||
Derivative, notional amount | $ 25,000 | |
Origination Date | Dec. 06, 2018 | |
Effective Date | Jan. 31, 2020 | |
Maturity date | Jun. 30, 2025 | |
Swap fixed interest rate | 2.74% | |
Fair value asset (liability) | $ 701 | 909 |
Interest Rate Swap #9 [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value of Financial Instruments Schedule of Interest Rate Swap Agreements [Line Items] | ||
Derivative, notional amount | $ 50,000 | |
Origination Date | Dec. 07, 2018 | |
Effective Date | May 18, 2020 | |
Maturity date | Jan. 31, 2024 | |
Swap fixed interest rate | 2.71% | |
Fair value asset (liability) | $ 877 | 1,163 |
Interest Rate Swap #10 [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value of Financial Instruments Schedule of Interest Rate Swap Agreements [Line Items] | ||
Derivative, notional amount | $ 75,000 | |
Origination Date | Aug. 21, 2019 | |
Effective Date | May 18, 2020 | |
Maturity date | May 18, 2025 | |
Swap fixed interest rate | 1.26% | |
Fair value asset (liability) | $ 4,365 | 5,225 |
Interest Rate Swap #11 [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value of Financial Instruments Schedule of Interest Rate Swap Agreements [Line Items] | ||
Derivative, notional amount | $ 75,000 | |
Origination Date | Aug. 21, 2019 | |
Effective Date | May 18, 2021 | |
Maturity date | May 18, 2026 | |
Swap fixed interest rate | 1.29% | |
Fair value asset (liability) | $ 5,467 | 6,506 |
Interest Rate Swap #12 [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value of Financial Instruments Schedule of Interest Rate Swap Agreements [Line Items] | ||
Derivative, notional amount | $ 50,000 | |
Origination Date | Mar. 17, 2023 | |
Effective Date | Mar. 20, 2023 | |
Maturity date | Mar. 18, 2028 | |
Swap fixed interest rate | 3.50% | |
Fair value asset (liability) | $ (126) | |
Interest Rate Swap #13 [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value of Financial Instruments Schedule of Interest Rate Swap Agreements [Line Items] | ||
Derivative, notional amount | $ 50,000 | |
Origination Date | Mar. 17, 2023 | |
Effective Date | Mar. 20, 2023 | |
Maturity date | Mar. 20, 2028 | |
Swap fixed interest rate | 3.49% | |
Fair value asset (liability) | $ (127) | |
Interest Rate Swap #14 [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value of Financial Instruments Schedule of Interest Rate Swap Agreements [Line Items] | ||
Derivative, notional amount | $ 100,000 | |
Origination Date | Apr. 07, 2016 | |
Effective Date | Sep. 30, 2016 | |
Maturity date | Mar. 31, 2023 | |
Swap fixed interest rate | 1.30% | |
Interest Rate Swap #14 [Member] | Not Designated as Hedging Instrument [Member] | ||
Fair Value of Financial Instruments Schedule of Interest Rate Swap Agreements [Line Items] | ||
Fair value asset (liability) | $ 824 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Derivative Instruments, Gain (Loss) Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative Instruments Gain Loss Recognized [Abstract] | ||
Net Unrealized Gain (Loss) Recognized in Other Comprehensive Income (Loss) | $ (3,091) | $ 24,464 |
Net Unrealized Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) to Interest and Other Expense, net | $ 5,015 | $ (2,755) |
Related Parties - Additional In
Related Parties - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Aircraft Owned by Executive Officers [Member] | General and Administrative Expenses [Member] | |||
Related Parties Details [Line Items] | |||
Related Party Transaction, Amounts of Transaction | $ 100,000 | $ 100,000 | |
Reimbursement Received From Related Parties For Their Proportionate Share of Staffing and Office Related Costs Provided by Apple Hospitality [Member] | |||
Related Parties Details [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 200,000 | $ 200,000 | |
Due from related parties | $ 200,000 | $ 400,000 | |
Cost Sharing Arrangement [Member] | |||
Related Parties Details [Line Items] | |||
Related party transaction, Description of transaction | To efficiently manage cash disbursements, the Company or ARG may make payments for the other company. Under this cash management process, each company may advance or defer up to $1 million at any time. Each quarter, any outstanding amounts are settled between the companies. This process allows each company to minimize its cash on hand and reduces the cost for each company. The amounts outstanding at any point in time are not significant to either of the companies. | ||
Cost Sharing Arrangement [Member] | Maximum [Member] | |||
Related Parties Details [Line Items] | |||
Related Party Transaction, Amounts of Transaction | $ 1,000,000 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 32 Months Ended | |||||
Apr. 17, 2023 | Mar. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | May 31, 2022 | Aug. 12, 2020 | |
Shareholders Equity Details [Line Items] | ||||||||
Common stock, dividends, per share, cash paid | $ 0.32 | $ 0.06 | ||||||
Payments of ordinary dividends, common stock | $ 73,399,000 | $ 13,701,000 | ||||||
Cash distribution, date declared | Mar. 31, 2023 | |||||||
Cash distribution declared | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | ||||
Cash distribution, date to be paid | Apr. 17, 2023 | Jan. 31, 2023 | ||||||
Accrued distribution | $ 18,296,000 | $ 18,296,000 | 11,420,000 | $ 18,296,000 | $ 36,600,000 | |||
Commissions and issuance costs | $ 29,000 | $ 186,000 | ||||||
Stock repurchase program, extended term | 1 year | |||||||
Stock repurchase program, authorized amount | $ 345,000,000 | |||||||
Share repurchase program, end period | 2023-07 | |||||||
Number of shares repurchased | 300,000 | |||||||
Stock repurchased value per share | $ 14.22 | |||||||
Stock repurchased value | $ 3,557,000 | |||||||
Stock repurchase program, remaining available for repurchase | 338,800,000 | $ 338,800,000 | $ 338,800,000 | |||||
Special One-time Distribution [Member] | ||||||||
Shareholders Equity Details [Line Items] | ||||||||
Cash distribution declared | $ 0.08 | |||||||
Combined Distribution [Member] | ||||||||
Shareholders Equity Details [Line Items] | ||||||||
Cash distribution declared | $ 0.16 | |||||||
ATM Program Executed August 12, 2020 [Member] | ||||||||
Shareholders Equity Details [Line Items] | ||||||||
Stock issuance program, authorized amount | $ 300,000,000 | |||||||
Stock issued during period, shares, new issues (in shares) | 0 | 4,700,000 | ||||||
Shares issued weighted average market sales price per share (in dollars per share) | $ 16.26 | |||||||
Proceeds from issuance of common stock, gross | $ 76,000,000 | |||||||
Commissions and issuance costs | 900,000 | |||||||
Proceeds from issuance of common stock, net | 75,100,000 | |||||||
Stock issuance program, available for issuance | 224,000,000 | $ 224,000,000 | 224,000,000 | |||||
ATM Program Executed August 12, 2020 [Member] | Prior to Refinancing [Member] | ||||||||
Shareholders Equity Details [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 425,000,000 | $ 425,000,000 | $ 425,000,000 |
Compensation Plans - Additional
Compensation Plans - Additional Information (Details) | 3 Months Ended | 12 Months Ended | |||
Apr. 01, 2020 USD ($) Officer shares | Mar. 31, 2023 USD ($) shares | Mar. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) | ||
New Officer Share-based Payment Arrangement [Member] | |||||
Compensation Plans Details [Line Items] | |||||
Number of new officers | Officer | 5 | ||||
Share based compensation, net (in Shares) | shares | 200,000 | ||||
Total share-based compensation earned, including the surrendered shares (in millions) | $ 1,800,000 | ||||
Restricted common shares vesting date | Mar. 31, 2023 | ||||
Restriction period | 3 years | ||||
Share-based compensation expense | $ 100,000 | $ 100,000 | |||
Common shares surrendered on issuance date to satisfy tax withholding obligations | shares | 83,000 | ||||
2023 Executive Management Incentive Plan [Member] | |||||
Compensation Plans Details [Line Items] | |||||
Incentive compensation, description | one-half (50%) of incentive compensation based on operational performance goals and metrics and one-half (50%) of incentive compensation based on shareholder return metrics. With respect to the shareholder return metrics, 75% of the target will be based on shareholder return relative to a peer group and 25% will be based on total shareholder return metrics over one-year, two-year, and three-year periods. | ||||
Operational performance metrics accounted for total target incentive compensation, percentage | 50% | ||||
Percentage of relative shareholder return metrics on shareholder return metrics | 75% | ||||
Percentage of total shareholder return metrics on shareholder return metrics | 25% | ||||
Shareholder return metrics accounted for total target incentive compensation, percentage | 50% | ||||
Operational performance goals and metrics percentage of the target based on modified funds | 25% | ||||
Percentage of operational performance goals on target operating performance metrics | 50% | ||||
Accrued liability for potential executive bonus payments | $ 4,200,000 | ||||
Portion of awards paid in cash | 25% | ||||
Portion of awards issued in equity | 75% | ||||
Percentage of operational performance goals based on revenue | 25% | ||||
2023 Executive Management Incentive Plan [Member] | Unrestricted Shares at Time of Issuance [Member] | Share Based Compensation [Member] | Equity Awards Issued in the First Quarter of 2023 [Member] | |||||
Compensation Plans Details [Line Items] | |||||
Share-based compensation arrangement, vesting description | two-thirds | ||||
2023 Executive Management Incentive Plan [Member] | Restricted Stock Vesting in December 2023 [Member] | Share Based Compensation [Member] | Equity Awards Issued in the First Quarter of 2023 [Member] | |||||
Compensation Plans Details [Line Items] | |||||
Share-based compensation arrangement, vesting description | one-third | ||||
2022 Executive Management Incentive Plan [Member] | General and Administrative Expenses [Member] | |||||
Compensation Plans Details [Line Items] | |||||
Labor and related expense | $ 3,700,000 | ||||
2022 Executive Management Incentive Plan [Member] | Share Based Compensation [Member] | Equity Awards Issued in the First Quarter of 2023 [Member] | |||||
Compensation Plans Details [Line Items] | |||||
Share based compensation, net (in Shares) | shares | 672,163 | ||||
Total share-based compensation earned, including the surrendered shares (in millions) | [1] | $ 15,600,000 | |||
Restricted common shares vesting date | Dec. 08, 2023 | ||||
Share-based compensation expense | $ 700,000 | $ 2,600,000 | |||
Common shares surrendered on issuance date to satisfy tax withholding obligations | shares | 263,026 | ||||
Potential Aggregate Payout [Member] | 2023 Executive Management Incentive Plan [Member] | Minimum [Member] | |||||
Compensation Plans Details [Line Items] | |||||
Labor and related expense | $ 0 | ||||
Potential Aggregate Payout [Member] | 2023 Executive Management Incentive Plan [Member] | Maximum [Member] | |||||
Compensation Plans Details [Line Items] | |||||
Labor and related expense | $ 27,100,000 | ||||
[1] Of the total 2021 share-based compensation, approximately $ 2.5 million, which vested on December 9, 2022, was recognized as share-based compensation expense proportionately throughout 2022. For the three months ended March 31, 2022 , the Company recognized approximately $ 0.6 million of share-based compensation expense related to restricted share awards. Additionally, in conjunction with the appointment of five new officers of the Company on April 1, 2020, the Company issued to the new officer group a total of approximately 200,000 restricted common shares with an aggregate grant date fair value of approximately $ 1.8 million. For each grantee, the restricted shares vested on March 31, 2023 . The expense associated with the awards was amortized over the 3 -year vesting period. For the three months ended March 31, 2023 and 2022, the Company recognized approximately $ 0.1 million of share-based compensation expense in each period related to these awards. Upon vesting on March 31, 2023, approximately 83,000 shares were surrendered to satisfy tax withholding obligations. |
Compensation Plans - Informatio
Compensation Plans - Information Pertaining to Share-based Compensation Issued (Details) - Share Based Compensation [Member] - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
2022 Executive Management Incentive Plan [Member] | Equity Awards Issued in the First Quarter of 2023 [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Period common shares issued | First Quarter 2023 | ||
Common shares earned under each incentive plan | 935,189 | ||
Common shares surrendered on issuance date to satisfy tax withholding obligations | 263,026 | ||
Common shares earned and issued under each incentive plan, net of common shares surrendered on issuance date to satisfy tax withholding obligations | 672,163 | ||
Average of the high and low stock price on issuance date | $ 16.70 | ||
Total share-based compensation earned, including the surrendered shares (in millions) | [1] | $ 15.6 | |
Of the total common shares earned and issued, total common shares unrestricted at time of issuance | 360,176 | ||
Of the total common shares earned and issued, total common shares restricted at time of issuance | 311,987 | ||
Restricted common shares vesting date | Dec. 08, 2023 | ||
2021 Executive Management Incentive Plan [Member] | Equity Awards Issued in the First Quarter of 2022 [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Period common shares issued | First Quarter 2022 | ||
Common shares earned under each incentive plan | 868,079 | ||
Common shares surrendered on issuance date to satisfy tax withholding obligations | 245,597 | ||
Common shares earned and issued under each incentive plan, net of common shares surrendered on issuance date to satisfy tax withholding obligations | 622,482 | ||
Average of the high and low stock price on issuance date | $ 17.79 | ||
Total share-based compensation earned, including the surrendered shares (in millions) | [2] | $ 15.4 | |
Of the total common shares earned and issued, total common shares unrestricted at time of issuance | 338,032 | ||
Of the total common shares earned and issued, total common shares restricted at time of issuance | 284,450 | ||
Restricted common shares vesting date | Dec. 09, 2022 | ||
Common shares surrendered on vesting date to satisfy tax withholding requirements resulting from vesting of restricted common shares | 114,147 | ||
[1] Of the total 2021 share-based compensation, approximately $ 2.5 million, which vested on December 9, 2022, was recognized as share-based compensation expense proportionately throughout 2022. For the three months ended March 31, 2022 , the Company recognized approximately $ 0.6 million of share-based compensation expense related to restricted share awards. Additionally, in conjunction with the appointment of five new officers of the Company on April 1, 2020, the Company issued to the new officer group a total of approximately 200,000 restricted common shares with an aggregate grant date fair value of approximately $ 1.8 million. For each grantee, the restricted shares vested on March 31, 2023 . The expense associated with the awards was amortized over the 3 -year vesting period. For the three months ended March 31, 2023 and 2022, the Company recognized approximately $ 0.1 million of share-based compensation expense in each period related to these awards. Upon vesting on March 31, 2023, approximately 83,000 shares were surrendered to satisfy tax withholding obligations. Of the total 2022 share-based compensation, approximately $ 12.5 million was recorded as a liability as of December 31, 2022 and is included in accounts payable and other liabilities in the Company’s consolidated balance sheet at December 31, 2022. Another $ 2.6 million, which is subject to vesting on December 8, 2023 and excludes any restricted shares forfeited or vested prior to that date, will be recognized as share-based compensation expense proportionately throughout 2023. For the three months ended March 31, 2023 , the Company recognized approximately $ 0.7 million of share-based compensation expense related to restricted share awards. |
Compensation Plans - Informat_2
Compensation Plans - Information Pertaining to Share-based Compensation Issued (Parenthetical) (Details) - Share Based Compensation [Member] - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
2022 Executive Management Incentive Plan [Member] | Equity Awards Issued in the First Quarter of 2023 [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation recorded as liability | $ 12.5 | |||
Share-based compensation expense | $ 0.7 | $ 2.6 | ||
2021 Executive Management Incentive Plan [Member] | Equity Awards Issued in the First Quarter of 2022 [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 0.6 | $ 2.5 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | ||||
Apr. 18, 2023 | Apr. 17, 2023 | Mar. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Subsequent Event [Line Items] | ||||||
Payments of ordinary dividends, common stock | $ 73,399 | $ 13,701 | ||||
Common stock, dividends, per share, cash paid | $ 0.32 | $ 0.06 | ||||
Cash distribution declared | $ 0.08 | $ 0.08 | $ 0.08 | |||
Cash distribution, date declared | Mar. 31, 2023 | |||||
Cash distribution, date to be paid | Apr. 17, 2023 | Jan. 31, 2023 | ||||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Payments of ordinary dividends, common stock | $ 18,300 | |||||
Common stock, dividends, per share, cash paid | $ 0.08 | |||||
Cash distribution, date of record | Apr. 28, 2023 | Mar. 31, 2023 | ||||
Cash distribution declared | $ 0.08 | |||||
Cash distribution, date declared | Apr. 18, 2023 | |||||
Cash distribution, date to be paid | May 15, 2023 |