Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 01, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Apple Hospitality REIT, Inc. | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 373,820,814 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0001418121 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Investment in real estate, net of accumulated depreciation of $281,626 and $200,754, respectively | $3,692,339 | $1,443,498 |
Cash and cash equivalents | 0 | 18,102 |
Restricted cash-furniture, fixtures and other escrows | 37,118 | 9,416 |
Due from third party managers, net | 34,255 | 10,421 |
Other assets, net | 43,486 | 9,844 |
Total Assets | 3,807,198 | 1,491,281 |
Liabilities | ' | ' |
Credit facility | 175,000 | 0 |
Mortgage debt | 521,878 | 162,551 |
Accounts payable and other liabilities | 53,658 | 16,919 |
Total Liabilities | 750,536 | 179,470 |
Shareholders' Equity | ' | ' |
Preferred stock, value issued | 0 | 0 |
Common stock, no par value, authorized 800,000,000 and 400,000,000 shares; issued and outstanding 373,820,814 and 182,784,131 shares, respectively | 3,737,328 | 1,807,377 |
Accumulated other comprehensive income | 311 | 0 |
Distributions greater than net income | -680,977 | -495,614 |
Total Shareholders' Equity | 3,056,662 | 1,311,811 |
Total Liabilities and Shareholders' Equity | 3,807,198 | 1,491,281 |
Series A Preferred Stock [Member] | ' | ' |
Shareholders' Equity | ' | ' |
Preferred stock, value issued | 0 | 0 |
Series B Convertible Preferred Stock [Member] | ' | ' |
Shareholders' Equity | ' | ' |
Preferred stock, value issued | $0 | $48 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Investment in real estate accumulated depreciation (in Dollars) | $281,626 | $200,754 |
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 | 400,000,000 |
Common stock, shares issued | 373,820,814 | 182,784,131 |
Common stock, shares outstanding | 373,820,814 | 182,784,131 |
Series A Preferred Stock [Member] | ' | ' |
Preferred stock, shares authorized | 400,000,000 | 400,000,000 |
Preferred stock, shares issued | 0 | 182,784,131 |
Preferred stock, shares outstanding | 0 | 182,784,131 |
Series B Convertible Preferred Stock [Member] | ' | ' |
Preferred stock, shares authorized | 480,000 | 480,000 |
Preferred stock, shares issued | 0 | 480,000 |
Preferred stock, shares outstanding | 0 | 480,000 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenues: | ' | ' | ' | ' |
Room | $213,831 | $91,936 | $552,645 | $271,324 |
Other | 18,053 | 8,301 | 48,928 | 25,888 |
Total revenue | 231,884 | 100,237 | 601,573 | 297,212 |
Expenses: | ' | ' | ' | ' |
Operating | 58,617 | 25,800 | 152,020 | 75,318 |
Hotel administrative | 16,627 | 7,218 | 43,610 | 21,287 |
Sales and marketing | 18,441 | 8,369 | 47,798 | 24,968 |
Utilities | 9,587 | 4,213 | 22,965 | 11,153 |
Repair and maintenance | 9,073 | 3,807 | 23,943 | 11,136 |
Franchise fees | 9,762 | 4,185 | 25,137 | 12,248 |
Management fees | 8,083 | 3,567 | 21,074 | 10,329 |
Property taxes, insurance and other | 11,121 | 4,790 | 29,477 | 15,385 |
Ground lease | 2,489 | 53 | 5,850 | 247 |
General and administrative | 5,627 | 1,778 | 14,774 | 5,815 |
Transaction costs | 707 | 1,908 | 4,593 | 2,044 |
Series B convertible preferred share expense | 0 | 0 | 117,133 | 0 |
Loss on impairment of depreciable real estate assets | 8,600 | 0 | 8,600 | 0 |
Depreciation | 31,095 | 13,732 | 81,408 | 40,865 |
Total expenses | 189,829 | 79,420 | 598,382 | 230,795 |
Operating income | 42,055 | 20,817 | 3,191 | 66,417 |
Interest expense, net | -6,340 | -2,287 | -17,197 | -6,701 |
Income (loss) before income taxes | 35,715 | 18,530 | -14,006 | 59,716 |
Income tax expense | -553 | -365 | -1,495 | -1,110 |
Net income (loss) | 35,162 | 18,165 | -15,501 | 58,606 |
Unrealized gain on interest rate derivative | 757 | 0 | 311 | 0 |
Comprehensive income (loss) | $35,919 | $18,165 | ($15,190) | $58,606 |
Basic and diluted net income (loss) per common share (in Dollars per share) | $0.09 | $0.10 | ($0.05) | $0.32 |
Weighted average common shares outstanding - basic and diluted (in Shares) | 373,821 | 182,784 | 332,583 | 182,560 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net income (loss) | ($15,501) | $58,606 |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | ' | ' |
Series B convertible preferred share expense | 117,133 | 0 |
Depreciation | 81,408 | 40,865 |
Loss on impairment of depreciable real estate assets | 8,600 | 0 |
Other non-cash expenses, net | 1,133 | 264 |
Changes in operating assets and liabilities, net of amounts acquired or assumed with acquisitions: | ' | ' |
Increase in due from third party managers, net | -9,444 | -5,104 |
Increase in other assets, net | -4,086 | -523 |
Increase in accounts payable and other liabilities | 4,873 | 3,914 |
Net cash provided by operating activities | 184,116 | 98,022 |
Cash flows from investing activities: | ' | ' |
Cash paid for acquisitions, net | 0 | -7,225 |
Capital improvements and development costs | -48,239 | -11,370 |
Decrease (increase) in capital improvement reserves | 2,368 | -207 |
Net proceeds (costs) from sale of assets | 5,648 | -353 |
Payments received on note receivable | 0 | 4,725 |
Net cash used in investing activities | -40,223 | -14,430 |
Cash flows from financing activities: | ' | ' |
Net proceeds related to issuance of Units | 0 | 21,778 |
Redemptions of shares | -2,349 | -19,992 |
Monthly distributions paid to common shareholders | -169,862 | -113,646 |
Proceeds from (payments on) extinguished credit facilities | -129,490 | 22,000 |
Net proceeds from existing credit facility | 175,000 | 0 |
Proceeds from mortgage debt | 27,000 | 0 |
Payments of mortgage debt | -57,289 | -2,759 |
Financing costs | -5,005 | 0 |
Net cash used in financing activities | -161,995 | -92,619 |
Decrease in cash and cash equivalents | -18,102 | -9,027 |
Cash and cash equivalents, beginning of period | 18,102 | 9,027 |
Cash and cash equivalents, end of period | 0 | 0 |
Supplemental cash flow information: | ' | ' |
Interest paid | 21,528 | 7,225 |
Supplemental disclosure of noncash investing and financing activities: | ' | ' |
Merger transactions purchase price, net (see details in note 2) | 1,814,613 | 0 |
Conversion of Series B convertible preferred shares to common shares | $117,133 | $0 |
Organization_and_Summary_of_Si
Organization and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | ' |
1. Organization and Summary of Significant Accounting Policies | |
Organization | |
Apple Hospitality REIT, Inc., formerly known as Apple REIT Nine, Inc., together with its wholly owned subsidiaries (the “Company”), is a Virginia corporation that has elected to be treated as a real estate investment trust (“REIT”) for federal income tax purposes. The Company is a self-advised REIT that invests in income-producing real estate in the United States. The Company’s fiscal year end is December 31. The Company has no foreign operations or assets and its operating structure includes only one segment. The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated. As of September 30, 2014, the Company owned 188 hotels with an aggregate of 23,489 rooms located in 33 states. | |
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 accounting principles generally accepted in the United States 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 2013 Annual Report on Form 10-K. Operating results for the three and nine months ended September 30, 2014 are not necessarily indicative of the results that may be expected for the twelve month period ending December 31, 2014. | |
Use of Estimates | |
The preparation of the financial statements in conformity with United States generally accepted accounting principles 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. | |
Reclassifications | |
Certain prior period amounts in the consolidated financial statements have been reclassified to conform to the current period presentation with no effect on previously reported net income (loss) or shareholders’ equity. | |
Comprehensive Income (Loss) | |
Comprehensive income (loss) includes net income (loss) and other comprehensive income, which is comprised of an unrealized gain resulting from a hedging activity. | |
Earnings Per Common Share | |
Basic earnings per common share is computed based upon the weighted average number of shares outstanding during the period. Diluted earnings per common share is calculated after giving effect to all potential common shares that were dilutive and outstanding for the period. There were no potential common shares with a dilutive effect for both the three and nine months ended September 30, 2014 and 2013. As a result, basic and dilutive outstanding shares were the same. As discussed in Note 2, as a result of becoming self-advised, the Series B convertible preferred shares converted to common shares effective March 1, 2014, resulting in approximately 11.6 million additional common shares outstanding. These additional common shares are included in the denominator for basic earnings and diluted earnings per common share from March 1, 2014. | |
Recent Accounting Standards | |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606), which affects virtually all aspects of an entity’s revenue recognition. The core principle of the new standard is that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those years. Early adoption is not permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. | |
In April 2014, the FASB issued ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which changes the requirements for reporting discontinued operations. Under this standard, only disposals representing a strategic shift that have, or will have, a major effect on operations and financial results should be presented as discontinued operations. As a result, the operations of sold properties will be included in continuing operations through the date of their disposal, unless the sale represents a strategic shift. The standard applies to all disposals (or classifications as held for sale) of components of an entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. Early adoption is permitted. The Company adopted the new standard effective January 1, 2014. Under this standard, the Company anticipates that the majority of hotel sales will not be classified as discontinued operations. | |
Mergers_with_Apple_REIT_Seven_
Mergers with Apple REIT Seven, Inc. and Apple REIT Eight, Inc. | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||||||||||
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | ' | ||||||||||||||||
2. Mergers with Apple REIT Seven, Inc. and Apple REIT Eight, Inc. | |||||||||||||||||
Effective March 1, 2014, the Company completed its previously announced mergers with Apple REIT Seven, Inc. (“Apple Seven”) and Apple REIT Eight, Inc. (“Apple Eight”) (the “A7 and A8 mergers”). Pursuant to the Agreement and Plan of Merger entered into on August 7, 2013, as amended (the “Merger Agreement”), Apple Seven and Apple Eight merged with and into Apple Seven Acquisition Sub, Inc. (“Seven Acquisition Sub”), a wholly owned subsidiary of the Company and Apple Eight Acquisition Sub, Inc. (“Eight Acquisition Sub”), a wholly owned subsidiary of the Company, respectively. Seven Acquisition Sub and Eight Acquisition Sub were formed solely for engaging in the A7 and A8 mergers and have not conducted any prior activities. Upon completion of the A7 and A8 mergers, the separate corporate existence of Apple Seven and Apple Eight ceased and Seven Acquisition Sub and Eight Acquisition Sub are the surviving corporations. Immediately following the effective time of the A7 and A8 mergers, the name of Seven Acquisition Sub was changed to Apple REIT Seven, Inc. and the name of Eight Acquisition Sub was changed to Apple REIT Eight, Inc. In addition, effective with the mergers, the Company’s name changed from Apple REIT Nine, Inc. to Apple Hospitality REIT, Inc. Upon completion of the A7 and A8 mergers, the Company’s common shares totaling 182.8 million prior to the mergers remained outstanding and: | |||||||||||||||||
· | Each issued and outstanding unit of Apple Seven (consisting of one Apple Seven common share together with one Apple Seven Series A preferred share) was converted into one common share of the Company, or a total of approximately 90.6 million common shares, and each issued and outstanding Series B convertible preferred share of Apple Seven was converted into a number of the Company’s common shares equal to 24.17104 multiplied by one, or a total of approximately 5.8 million common shares; and | ||||||||||||||||
· | Each issued and outstanding unit of Apple Eight (consisting of one Apple Eight common share together with one Apple Eight Series A preferred share) was converted into 0.85 common share of the Company, or a total of approximately 78.3 million common shares, and each issued and outstanding Series B convertible preferred share of Apple Eight was converted into a number of the Company’s common shares equal to 24.17104 multiplied by 0.85, or a total of approximately 4.9 million common shares. | ||||||||||||||||
The Company has accounted for the A7 and A8 mergers in accordance with the Accounting Standards Codification (“ASC”) 805, Business Combinations. The Company has been considered the acquirer for financial reporting purposes, which requires, among other things, that the assets acquired and liabilities assumed from Apple Seven and Apple Eight be recognized at their acquisition date fair values. For purpose of accounting for the transactions, the total consideration of the Company’s common shares transferred in the A7 and A8 mergers was estimated to be approximately $1.8 billion and was based on approximately 180 million common shares issued at a fair value estimate of $10.10 per common share. | |||||||||||||||||
The fair value estimate of the Company’s common stock was based upon a third party valuation and other analyses as of March 1, 2014, the effective time of the mergers. Since the Company’s common stock is not publicly traded, the fair value estimate was a Level 3 input under ASC 820, Fair Value Measurement, as it was derived from unobservable inputs. The fair value estimate was based on a combination of the income and market approaches as outlined in ASC 820. In the income approach, the fair value estimate was calculated from a discounted cash flow model using Apple Seven, Apple Eight and the Company’s (the “merged entities”) consolidated projected cash flows, as well as a discount rate and terminal capitalization rate based on market conditions at the effective time of the mergers and consistent with industry averages. In the market approach, the fair value estimate was calculated by applying multiples (using industry peers at the effective time of the mergers) to both the consolidated 2013 historical and 2014 projected combined revenue and operating results of the merged entities and using multiples of operating results from comparable transactions. | |||||||||||||||||
As contemplated in the Merger Agreement, in connection with completion of the A7 and A8 mergers, the Company became self-advised and the advisory agreements between the Company and Apple Nine Advisors, Inc. and Apple Suites Realty Group, Inc. were terminated. The termination of the advisory agreements resulted in the conversion of each issued and outstanding Series B convertible preferred share of the Company into 24.17104 common shares of the Company, or a total of approximately 11.6 million common shares. As a result of the conversion, all of the Company’s Series A preferred shares were terminated and the Company only has common shares outstanding. In conjunction with this event, during the first quarter of 2014, the Company recorded a non-cash expense totaling approximately $117.1 million, included in the Company’s statements of operations, to reflect the fair value estimate of the conversion of the Series B preferred shares to common shares at a fair value estimate of $10.10 per common share. | |||||||||||||||||
On March 1, 2014, at the completion of the A7 and A8 mergers and related transactions, the Company had a total of approximately 374.1 million common shares outstanding. During the second quarter of 2014, the Company paid a total of approximately $2.3 million to shareholders holding approximately 0.2 million as-converted common shares, who exercised appraisal rights in connection with the A7 and A8 mergers and related transactions, which was recorded as a reduction to shareholders’ equity and common shares outstanding. | |||||||||||||||||
With the completion of the A7 and A8 mergers, as of September 30, 2014, the Company owned 188 hotels (including a total of 99 hotels from Apple Seven and Apple Eight) with an aggregate of 23,489 rooms located in 33 states. | |||||||||||||||||
All costs related to the A7 and A8 mergers are being expensed in the period they are incurred and are included in transaction costs in the Company’s consolidated statements of operations. In connection with these activities, the Company has incurred approximately $6.6 million in total merger costs (including approximately $0.8 million of costs incurred to defend the ongoing purported class action related to the A7 and A8 mergers discussed in Note 9), of which approximately $3.5 million was incurred during the nine months ended September 30, 2014 and $3.1 million was incurred during 2013. | |||||||||||||||||
As more fully described in Note 4, effective March 1, 2014, upon completion of the A7 and A8 mergers, the Company assumed approximately $385.1 million in mortgage debt, prior to any fair value adjustments, secured by 34 properties. The Company also assumed the outstanding balances on Apple Seven’s and Apple Eight’s credit facilities totaling approximately $129.5 million, which were then terminated on March 3, 2014 upon entering into a new $345 million unsecured credit facility. | |||||||||||||||||
The following table summarizes the Company’s purchase price allocation for the A7 and A8 mergers, which represents its best estimate of the fair values of the assets acquired and liabilities assumed on March 1, 2014, the effective date of the mergers (in thousands): | |||||||||||||||||
Purchase Price Allocation | |||||||||||||||||
Assets: | |||||||||||||||||
Land | $ | 395,250 | |||||||||||||||
Building and improvements | 1,776,208 | ||||||||||||||||
Furniture, fixtures and equipment | 112,013 | ||||||||||||||||
Franchise fees | 3,296 | ||||||||||||||||
Investment in real estate | 2,286,767 | ||||||||||||||||
Cash and cash equivalents, restricted cash, due from third party managers and other assets | 75,951 | ||||||||||||||||
Total assets | 2,362,718 | ||||||||||||||||
Liabilities: | |||||||||||||||||
Credit facilities | 129,490 | ||||||||||||||||
Mortgage debt | 393,209 | ||||||||||||||||
Accounts payable and other liabilities | 25,406 | ||||||||||||||||
Total liabiities | 548,105 | ||||||||||||||||
Fair value estimate of net assets acquired | $ | 1,814,613 | |||||||||||||||
The allocation of the purchase price required a significant amount of judgment and was based upon valuations and other analyses described below that were finalized during the second quarter of 2014. Measurement period adjustments were made during the second quarter of 2014 to adjust real estate values to reflect new information obtained about facts and circumstances that existed as of the acquisition date. Changes to the initial purchase price allocation did not have a material impact on the Company’s consolidated financial statements. The Company engaged a valuation firm to assist in this analysis. The methodologies and significant inputs and assumptions used in deriving estimates of fair value vary and are based on the nature of the tangible or intangible asset acquired or liability assumed. The fair value of land, building and improvements, furniture, fixtures and equipment, and identifiable intangible assets and liabilities was developed based on the cost approach, market approach or income approach depending on available information and compared to a secondary approach when possible. The fair value of debt was estimated based on contractual future cash flows discounted using borrowing spreads and market interest rates that would be available to the Company for the issuance of debt with similar terms and remaining maturities. Significant inputs and assumptions associated with these approaches included estimates of future operating cash flows and discount rates based on an evaluation of both observable market data (categorized as Level 2 inputs under the fair value hierarchy) and unobservable inputs that reflect the Company’s own internal assumptions and calculations (categorized as Level 3 inputs under the fair value hierarchy). No goodwill was recorded in connection with the A7 and A8 mergers. | |||||||||||||||||
In connection with the A7 and A8 mergers, the Company acquired 11 properties with existing ground leases, with remaining terms ranging from approximately 18 to 92 years, excluding any option periods to extend the initial lease term. In connection with the acquisition of these 11 properties, the Company recorded $21.1 million as the intangible value of below market leases, included in other assets, net in the Company’s consolidated balance sheet, and $6.8 million as the intangible value of above market leases, included in accounts payable and other liabilities in the Company’s consolidated balance sheet. The value of these lease intangibles are amortized over the term of the respective leases and included in ground lease expense in the Company’s consolidated statements of operations. The ground leases are classified as operating leases, and rental expense is recognized on a straight line basis over the remaining term of the leases. | |||||||||||||||||
The aggregate amounts of the estimated lease payments pertaining to all of the ground leases assumed in the A7 and A8 mergers, for the five years subsequent to September 30, 2014 and thereafter are as follows (in thousands): | |||||||||||||||||
Total | |||||||||||||||||
2014 (October - December) | $ | 1,367 | |||||||||||||||
2015 | 5,523 | ||||||||||||||||
2016 | 5,655 | ||||||||||||||||
2017 | 5,788 | ||||||||||||||||
2018 | 5,924 | ||||||||||||||||
Thereafter | 295,556 | ||||||||||||||||
Total | $ | 319,813 | |||||||||||||||
Total revenue and operating income related to the A7 and A8 mergers, from the effective date of the mergers through September 30, 2014 included in the Company’s consolidated statements of operations was approximately $282.7 million and approximately $63.7 million, respectively. | |||||||||||||||||
The following unaudited pro forma information for the three and nine month periods ended September 30, 2014 and 2013, is presented as if the A7 and A8 mergers, effective March 1, 2014, had occurred on January 1, 2013, and is based on assumptions and estimates considered appropriate by the Company. The pro forma information is provided for illustrative purposes only and does not necessarily reflect what the operating results would have been had the mergers been completed on January 1, 2013, nor is it necessarily indicative of future operating results. The pro forma information does not give effect to any cost synergies or other operating efficiencies that could result from the mergers. Amounts are in thousands except per share data. | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Revenue | $ | 231,884 | $ | 215,962 | $ | 662,421 | $ | 622,021 | |||||||||
Net income | $ | 35,612 | $ | 39,393 | $ | 107,242 | $ | 106,893 | |||||||||
Net income per share - basic and diluted | $ | 0.1 | $ | 0.11 | $ | 0.29 | $ | 0.29 | |||||||||
Weighted average common shares outstanding - basic and diluted | 373,821 | 373,821 | 373,821 | 373,597 | |||||||||||||
For purposes of calculating these pro forma amounts, merger transaction costs and the expense related to the conversion of the Series B convertible preferred shares, each included in the Company’s consolidated statements of operations, were excluded from the pro forma amounts since these are attributable to the A7 and A8 mergers and related transactions and do not have an ongoing impact to the statements of operations. Merger transaction costs totaled approximately $0.5 million and $1.9 million for the three months ended September 30, 2014 and 2013 and approximately $3.5 million and $2.0 million for the nine months ended September 30, 2014 and 2013. The expense related to the conversion of the Series B convertible preferred shares was approximately $117.1 million for the nine months ended September 30, 2014. | |||||||||||||||||
Investment_in_Real_Estate
Investment in Real Estate | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Real Estate [Abstract] | ' | ||||||||
Real Estate Disclosure [Text Block] | ' | ||||||||
3. Investment in Real Estate | |||||||||
The Company’s total investment in real estate consisted of the following (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Land | $ | 539,196 | $ | 143,946 | |||||
Building and Improvements | 3,144,634 | 1,360,634 | |||||||
Furniture, Fixtures and Equipment | 254,097 | 126,218 | |||||||
Franchise Fees | 7,868 | 4,572 | |||||||
Construction in Progress | 28,170 | 8,882 | |||||||
3,973,965 | 1,644,252 | ||||||||
Less Accumulated Depreciation | (281,626 | ) | (200,754 | ) | |||||
Investment in Real Estate, net | $ | 3,692,339 | $ | 1,443,498 | |||||
As of September 30, 2014, the Company owned 188 hotels with an aggregate of 23,489 rooms located in 33 states. The table below shows the number of hotels and rooms by brand: | |||||||||
Number of Hotels and Guest Rooms by Brand | |||||||||
Number of | Number of | ||||||||
Brand | Hotels | Rooms | |||||||
Courtyard | 34 | 4,391 | |||||||
Hampton Inn | 32 | 3,731 | |||||||
Hilton Garden Inn | 31 | 4,118 | |||||||
Residence Inn | 25 | 2,864 | |||||||
Homewood Suites | 24 | 2,645 | |||||||
SpringHill Suites | 14 | 1,868 | |||||||
TownePlace Suites | 11 | 1,105 | |||||||
Fairfield Inn | 8 | 944 | |||||||
Marriott | 3 | 842 | |||||||
Embassy Suites | 2 | 316 | |||||||
Home2 Suites | 2 | 237 | |||||||
Hilton | 1 | 224 | |||||||
Renaissance | 1 | 204 | |||||||
Total | 188 | 23,489 | |||||||
Effective March 1, 2014, the Company completed the A7 and A8 mergers, which added 99 continuing hotels (including 48 hotels from Apple Seven and 51 hotels from Apple Eight) to the Company’s real estate portfolio. The Apple Seven and Apple Eight properties are located in 27 states, with an aggregate of 6,205 and 5,913 rooms, respectively. As shown in the table setting forth the purchase price allocation for the A7 and A8 mergers in Note 2, the total real estate value of the A7 and A8 mergers was estimated to be approximately $2.3 billion. | |||||||||
Impairment of Depreciable Real Estate Assets | |||||||||
During the third quarter of 2014, the Company identified 22 properties for potential sale. The properties were identified based on individual market conditions, the Company’s total investment in certain markets, and additional capital requirements for those properties. If the Company were to complete these sales, it intends to redeploy the proceeds by acquiring other hotel properties. During October 2014, the Company began the process of marketing these assets. Due to the change in the anticipated hold period of the assets, the undiscounted cash flows generated by certain of these properties was estimated to be less than their carrying values; therefore the Company recognized an impairment loss of $8.6 million in the third quarter of 2014 to adjust the basis of these individual properties to their estimated fair values. The estimated fair values of these properties were based on third party estimates and discounted cash flow analyses, using expected future cash flows, management’s estimates of discount rates, estimates of market capitalization rates and other market considerations. These estimates incorporate significant unobservable inputs and therefore are considered Level 3 inputs under the fair value hierarchy. The assumptions used in estimating the undiscounted cash flows and the fair values of the properties, as applicable, are subject to change based on future operating performance and market conditions. The Company classifies assets as held for sale when a binding agreement to sell the property has been signed under which the buyer has committed a significant amount of nonrefundable cash, no significant contingencies exist which could prevent the transaction from being completed in a timely manner, and the sale is expected to close within one year. Since the sale of these properties are not probable at this time, the assets and liabilities related to these properties have not been classified as held for sale in the Company’s consolidated balance sheet at September 30, 2014. | |||||||||
Credit_Facility_and_Mortgage_D
Credit Facility and Mortgage Debt | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||||||||||||
Debt Disclosure [Text Block] | ' | ||||||||||||||||||||||||||
4. Credit Facility and Mortgage Debt | |||||||||||||||||||||||||||
Credit Facility | |||||||||||||||||||||||||||
Effective March 1, 2014, upon completion of the A7 and A8 mergers, the Company assumed the outstanding balances on Apple Seven’s and Apple Eight’s credit facilities totaling approximately $129.5 million. On March 3, 2014, the Company terminated the Apple Seven and Apple Eight credit facilities and its $50 million unsecured credit facility, which as of the termination date had an outstanding balance of $9.6 million, and entered into a new $345 million unsecured credit facility (comprised of a $245 million revolving credit facility and a $100 million term loan). At closing of the new credit facility, the Company borrowed $150 million under the new facility which was primarily used to repay Apple Seven’s, Apple Eight’s and the Company’s outstanding balances on their respective credit facilities and to pay approximately $3.3 million in closing costs, which are being amortized over the term of the new credit facility. The $345 million credit facility is available for working capital, hotel renovations and development and other general corporate purposes, including the payment of share repurchases and distributions. The $345 million credit facility may be increased to $700 million, subject to certain conditions. Under the terms of the $345 million credit facility, the Company may make voluntary prepayments in whole or in part, at any time. The $245 million revolving credit facility matures in March 2018; however, the Company has the right, upon satisfaction of certain conditions, including covenant compliance and payment of an extension fee, to extend the maturity date to March 2019. The $100 million term loan matures in March 2019. Interest payments on the $345 million credit facility are due monthly and the interest rate, subject to certain exceptions, is equal to the one-month LIBOR (the London Inter-Bank Offered Rate for a one-month term) plus a margin ranging from 1.55% to 2.35%, depending upon the Company’s leverage ratio, as calculated under the terms of the credit agreement. In conjunction with the $100 million term loan, the Company entered into an interest rate swap agreement for the same notional amount and maturity as the term loan. The interest rate swap agreement effectively provides the Company with payment requirements equal to a fixed interest rate on the term loan through the maturity of the loan in March 2019 (see Note 5 for more information on the interest rate swap agreement). The Company is also required to pay an unused facility fee of 0.20% or 0.30% on the unused portion of the $245 million revolving credit facility, based on the amount of borrowings outstanding during the quarter. As of September 30, 2014, the credit facility had an outstanding principal balance of $175 million, including the $100 million term loan. The annual variable interest rate on the $245 million revolving credit facility was approximately 1.76%, and the effective annual fixed interest rate on the $100 million term loan was approximately 3.13% as of September 30, 2014. | |||||||||||||||||||||||||||
The $345 million credit facility contains customary affirmative covenants, negative covenants and events of defaults. In addition, the credit facility contains covenants restricting the level of certain investments and the following quarterly financial covenants (capitalized terms are defined in the credit agreement). | |||||||||||||||||||||||||||
· | A ratio of Consolidated Total Indebtedness to Consolidated EBITDA of not more than 6.00 to 1.00 (subject to a higher amount in certain circumstances); | ||||||||||||||||||||||||||
· | A ratio of Consolidated Secured Indebtedness to Consolidated Total Assets of not more than 45%; | ||||||||||||||||||||||||||
· | A minimum Consolidated Tangible Net Worth of $2.3 billion (plus 75% of the Net Cash Proceeds from issuances and sales of Equity Interests occurring after the Closing Date); | ||||||||||||||||||||||||||
· | A ratio of Adjusted Consolidated EBITDA to Consolidated Fixed Charges 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 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 of not more than 60%; | ||||||||||||||||||||||||||
· | A ratio of Consolidated Secured Recourse Indebtedness to Consolidated Total Assets of not more than 10%; and | ||||||||||||||||||||||||||
· | Restricted payments (including distributions and share repurchases), net of any proceeds from a dividend reinvestment plan, cannot exceed 100% of Funds From Operations during the Initial Period or any fiscal year thereafter, unless the Company is required to distribute more to meet REIT requirements. The percentage is reduced to 95% in the first fiscal year after a public listing of the Company’s equity interests. | ||||||||||||||||||||||||||
The Company was in compliance with each of the applicable covenants at September 30, 2014. | |||||||||||||||||||||||||||
Mortgage Debt | |||||||||||||||||||||||||||
Upon completion of the A7 and A8 mergers on March 1, 2014, the Company assumed approximately $385.1 million in mortgage debt, prior to any fair value adjustments, secured by 34 properties. This assumed mortgage debt had maturity dates ranging from September 2014 to April 2023 and stated interest rates ranging from 3.97% to 6.95%. A fair value, net premium adjustment totaling approximately $8.1 million was recorded upon the assumption of above (premium) or below (discount) market rate mortgages. The total fair value adjustment will be amortized as a reduction to interest expense over the remaining term of the respective mortgages using a method approximating the effective interest rate method. The effective interest rates on the applicable debt obligations assumed ranged from 3.66% to 4.68% at the date of assumption. The Company incurred loan origination costs related to the assumption of the mortgage obligations totaling approximately $1.9 million. Such costs are amortized over the period to maturity of the applicable mortgage loan, as an addition to interest expense. | |||||||||||||||||||||||||||
As of September 30, 2014, the Company had $516.3 million in mortgage debt secured by 47 properties, with maturity dates ranging from April 2015 to October 2032, stated interest rates ranging from 0% to 6.90% and effective interest rates ranging from 3.66% to 6.52%. The following table sets forth the hotel property securing each loan, the interest rate, loan assumption or origination date, maturity date, the principal amount assumed or originated, and the outstanding balance as of September 30, 2014 and December 31, 2013 for each of the Company’s debt obligations. All dollar amounts are in thousands. | |||||||||||||||||||||||||||
Location | Brand | Interest Rate (1) | Loan Assumption or Origination Date | Maturity Date | Principal Assumed or Originated | Outstanding balance as of September 30, 2014 | Outstanding balance as of December 31, 2013 | ||||||||||||||||||||
Richmond, VA | Marriott | 6.95 | % | 3/1/14 | -2 | $ | 21,524 | $ | 0 | $ | 0 | ||||||||||||||||
Suffolk, VA | TownePlace Suites | 6.03 | % | 3/1/14 | (3) | 6,138 | 0 | 0 | |||||||||||||||||||
Suffolk, VA | Courtyard | 6.03 | % | 3/1/14 | (3) | 8,002 | 0 | 0 | |||||||||||||||||||
New Orleans, LA | Homewood Suites | 5.85 | % | 3/1/14 | -4 | 14,331 | 0 | 0 | |||||||||||||||||||
Overland Park, KS | Residence Inn | 5.74 | % | 3/1/14 | 4/1/15 | 6,018 | 5,889 | 0 | |||||||||||||||||||
Dallas, TX | Hilton | 6.63 | % | 5/17/11 | 6/6/15 | 20,988 | 19,076 | 19,545 | |||||||||||||||||||
Rogers, AR | Hampton Inn | 5.2 | % | 8/31/10 | 9/1/15 | 8,337 | 7,641 | 7,781 | |||||||||||||||||||
St. Louis, MO | Hampton Inn | 5.3 | % | 8/31/10 | 9/1/15 | 13,915 | 12,771 | 13,001 | |||||||||||||||||||
Kansas City, MO | Hampton Inn | 5.45 | % | 8/31/10 | 10/1/15 | 6,517 | 5,997 | 6,102 | |||||||||||||||||||
Westford, MA | Residence Inn | 5.3 | % | -5 | 3/1/14 | 10/1/15 | 6,530 | 6,438 | 0 | ||||||||||||||||||
Allen, TX | Hilton Garden Inn | 5.37 | % | 10/31/08 | 10/11/15 | 10,787 | 9,618 | 9,787 | |||||||||||||||||||
Kansas City, MO | Residence Inn | 5.74 | % | 3/1/14 | 11/1/15 | 10,602 | 10,475 | 0 | |||||||||||||||||||
Fayetteville, NC | Residence Inn | 5.14 | % | 3/1/14 | 12/1/15 | 6,545 | 6,451 | 0 | |||||||||||||||||||
Austin, TX | Homewood Suites | 5.99 | % | 4/14/09 | 3/1/16 | 7,556 | 6,541 | 6,702 | |||||||||||||||||||
Austin, TX | Hampton Inn | 5.95 | % | 4/14/09 | 3/1/16 | 7,553 | 6,534 | 6,696 | |||||||||||||||||||
Tupelo, MS | Hampton Inn | 5.9 | % | 3/1/14 | 3/1/16 | 3,124 | 3,022 | 0 | |||||||||||||||||||
Houston, TX | Residence Inn | 5.71 | % | 3/1/14 | 3/1/16 | 9,930 | 9,801 | 0 | |||||||||||||||||||
Hilton Head, SC | Hilton Garden Inn | 6.29 | % | 3/1/14 | 4/11/16 | 5,557 | 5,455 | 0 | |||||||||||||||||||
Round Rock, TX | Hampton Inn | 5.95 | % | 3/6/09 | 5/1/16 | 4,175 | 3,613 | 3,701 | |||||||||||||||||||
Highlands Ranch, CO | Residence Inn | 5.94 | % | 3/1/14 | 6/1/16 | 10,494 | 10,378 | 0 | |||||||||||||||||||
Texarkana, TX | Hampton Inn & Suites | 6.9 | % | 1/31/11 | 7/8/16 | 4,954 | 4,687 | 4,747 | |||||||||||||||||||
Bristol, VA | Courtyard | 6.59 | % | 11/7/08 | 8/1/16 | 9,767 | 8,964 | 9,086 | |||||||||||||||||||
Virginia Beach, VA | Courtyard | 6.02 | % | 3/1/14 | 11/11/16 | 13,931 | 13,767 | 0 | |||||||||||||||||||
Virginia Beach, VA | Courtyard | 6.02 | % | 3/1/14 | 11/11/16 | 16,813 | 16,615 | 0 | |||||||||||||||||||
Charlottesville, VA | Courtyard | 6.02 | % | 3/1/14 | 11/11/16 | 14,892 | 14,716 | 0 | |||||||||||||||||||
Carolina Beach, NC | Courtyard | 6.02 | % | 3/1/14 | 11/11/16 | 12,009 | 11,868 | 0 | |||||||||||||||||||
Winston-Salem, NC | Courtyard | 5.94 | % | 3/1/14 | 12/8/16 | 7,458 | 7,385 | 0 | |||||||||||||||||||
Lewisville, TX (6) | Hilton Garden Inn | 0 | % | 10/16/08 | 12/31/16 | 3,750 | 2,000 | 2,000 | |||||||||||||||||||
Oceanside, CA | Residence Inn | 4.24 | % | -5 | 3/1/14 | 1/13/17 | 15,662 | 15,480 | 0 | ||||||||||||||||||
Burbank, CA | Residence Inn | 4.24 | % | -5 | 3/1/14 | 1/13/17 | 23,493 | 23,220 | 0 | ||||||||||||||||||
Savannah, GA | Hilton Garden Inn | 5.87 | % | 3/1/14 | 2/1/17 | 4,977 | 4,888 | 0 | |||||||||||||||||||
Greenville, SC | Residence Inn | 6.03 | % | 3/1/14 | 2/8/17 | 6,012 | 5,949 | 0 | |||||||||||||||||||
Birmingham, AL | Homewood Suites | 6.03 | % | 3/1/14 | 2/8/17 | 10,908 | 10,795 | 0 | |||||||||||||||||||
Jacksonville, FL | Homewood Suites | 6.03 | % | 3/1/14 | 2/8/17 | 15,856 | 15,691 | 0 | |||||||||||||||||||
Concord, NC | Hampton Inn | 6.1 | % | 3/1/14 | 3/1/17 | 4,718 | 4,666 | 0 | |||||||||||||||||||
Irving, TX | Homewood Suites | 5.83 | % | 12/29/10 | 4/11/17 | 6,052 | 5,481 | 5,605 | |||||||||||||||||||
Duncanville, TX | Hilton Garden Inn | 5.88 | % | 10/21/08 | 5/11/17 | 13,966 | 12,725 | 12,907 | |||||||||||||||||||
Grapevine, TX | Hilton Garden Inn | 4.89 | % | 8/29/12 | 9/1/22 | 11,810 | 11,319 | 11,509 | |||||||||||||||||||
Collegeville/Philadelphia, PA | Courtyard | 4.89 | % | 8/30/12 | 9/1/22 | 12,650 | 12,124 | 12,327 | |||||||||||||||||||
Hattiesburg, MS | Courtyard | 5 | % | 3/1/14 | 9/1/22 | 5,732 | 5,659 | 0 | |||||||||||||||||||
Rancho Bernardo, CA | Courtyard | 5 | % | 3/1/14 | 9/1/22 | 15,060 | 14,867 | 0 | |||||||||||||||||||
Kirkland, WA | Courtyard | 5 | % | 3/1/14 | 9/1/22 | 12,145 | 11,989 | 0 | |||||||||||||||||||
Seattle, WA | Residence Inn | 4.96 | % | 3/1/14 | 9/1/22 | 28,269 | 27,903 | 0 | |||||||||||||||||||
Anchorage, AK | Embassy Suites | 4.97 | % | 9/13/12 | 10/1/22 | 23,230 | 22,319 | 22,686 | |||||||||||||||||||
Somerset, NJ | Courtyard | 4.73 | % | 3/1/14 | 10/6/22 | 8,750 | 8,634 | 0 | |||||||||||||||||||
Tukwila, WA | Homewood Suites | 4.73 | % | 3/1/14 | 10/6/22 | 9,431 | 9,306 | 0 | |||||||||||||||||||
Prattville, AL | Courtyard | 4.12 | % | 3/1/14 | 2/6/23 | 6,596 | 6,503 | 0 | |||||||||||||||||||
Huntsville, AL | Homewood Suites | 4.12 | % | 3/1/14 | 2/6/23 | 8,306 | 8,188 | 0 | |||||||||||||||||||
San Diego, CA | Residence Inn | 3.97 | % | 3/1/14 | 3/6/23 | 18,600 | 18,332 | 0 | |||||||||||||||||||
Miami, FL | Homewood Suites | 4.02 | % | 3/1/14 | 4/1/23 | 16,677 | 16,440 | 0 | |||||||||||||||||||
New Orleans, LA | Homewood Suites | 4.36 | % | 7/17/14 | 8/11/24 | -4 | 27,000 | 26,953 | 0 | ||||||||||||||||||
Malvern/Philadelphia, PA | Courtyard | 6.5 | % | 11/30/10 | 10/1/32 | -7 | 7,894 | 7,185 | 7,337 | ||||||||||||||||||
585,991 | 516,318 | 161,519 | |||||||||||||||||||||||||
Unamortized fair value adjustment of assumed debt | 11,196 | 5,560 | 1,032 | ||||||||||||||||||||||||
Total | $ | 597,187 | $ | 521,878 | $ | 162,551 | |||||||||||||||||||||
-1 | Unless otherwise noted, these rates are the rates per the loan agreement. For loans assumed, the Company adjusted the interest rates to market rates and is amortizing the adjustments to interest expense over the life of the loan. | ||||||||||||||||||||||||||
-2 | Loan (assumed on March 1, 2014) was repaid in full on June 3, 2014. | ||||||||||||||||||||||||||
-3 | Loans (assumed on March 1, 2014) were repaid in full on July 1, 2014. | ||||||||||||||||||||||||||
-4 | On July 1, 2014, the Company repaid in full the mortgage loan assumed with the A7 and A8 mergers, and on July 17, 2014 the Company originated new debt secured by this hotel. | ||||||||||||||||||||||||||
-5 | The annual fixed interest rate gives effect to an interest rate swap agreement assumed by the Company with the mortgage debt. | ||||||||||||||||||||||||||
-6 | Unsecured loan. | ||||||||||||||||||||||||||
-7 | Outstanding principal balance is callable by lender or prepayable by the Company beginning on October 1, 2016, and every five years thereafter until maturity, subject to certain conditions. | ||||||||||||||||||||||||||
The aggregate amounts of principal payable under the Company’s total debt obligations (including mortgage debt and the balance outstanding under the Company’s credit facility), for the five years subsequent to September 30, 2014 and thereafter are as follows (in thousands): | |||||||||||||||||||||||||||
2014 (October - December) | $ | 3,042 | |||||||||||||||||||||||||
2015 | 93,888 | ||||||||||||||||||||||||||
2016 | 135,658 | ||||||||||||||||||||||||||
2017 | 99,394 | ||||||||||||||||||||||||||
2018 | 80,506 | ||||||||||||||||||||||||||
Thereafter | 278,830 | ||||||||||||||||||||||||||
691,318 | |||||||||||||||||||||||||||
Unamortized fair value adjustment of assumed debt | 5,560 | ||||||||||||||||||||||||||
Total | $ | 696,878 | |||||||||||||||||||||||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||
Fair Value Disclosures [Text Block] | ' | |||||||||
5. Fair Value of Financial Instruments | ||||||||||
Credit Facility and Mortgage 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 September 30, 2014, the carrying value and estimated fair value of the Company’s debt was approximately $696.9 million and $705.0 million. As of December 31, 2013, the carrying value and estimated fair value of the Company’s debt was approximately $162.6 million and $163.6 million. | ||||||||||
Derivative Instruments | ||||||||||
Currently, the Company uses interest rate swaps to manage its interest rate risks on variable rate debt. These instruments, as described below, are recorded at fair value. The fair value of instruments that are in an asset position are included in other assets, net in the Company’s consolidated balance sheets. The fair value of instruments that are in a liability position are included in accounts payable and other liabilities in the Company’s consolidated balance sheets. | ||||||||||
On March 1, 2014, the Company assumed three interest rate swap agreements, with an aggregate notional amount of $45.7 million that effectively fixes the interest rate on two separate variable-rate mortgage loans assumed with the A7 and A8 mergers through maturity. The fair value of the interest rate swap agreements assumed was approximately $0.5 million (liability) and is included in accounts payable and other liabilities as part of the purchase price allocation as discussed in Note 2. Under 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 LIBOR. As of September 30, 2014, the fair value of these swaps totaled approximately $0.3 million (liability). The interest rate swaps assumed are not designated by the Company as hedges for accounting purposes, and therefore the changes in the fair value for these swaps are recorded to interest expense, net in the Company’s consolidated statements of operations. For the three and nine months ended September 30, 2014, the change in fair value resulted in a decrease of $0.2 million and $0.3 million, respectively, to interest expense, net. | ||||||||||
In March 2014, the Company entered into an interest rate swap agreement for the same notional amount and maturity as its $100 million term loan. The interest rate swap agreement effectively fixes the interest rate on the $100 million term loan (subject to the Company’s leverage ratio) through maturity. Under the terms of this interest rate swap, the Company pays a fixed interest rate of 1.58% and receives a floating rate of interest equal to the one month LIBOR. The interest rate swap agreement matures in March 2019. As of September 30, 2014, the fair value of this swap totaled approximately $0.3 million (asset). The interest rate swap has been designated by the Company as an effective cash flow hedge for accounting purposes, and therefore the effective portion of the changes in the fair value for this swap are recorded in accumulated other comprehensive income, a component of shareholder’s equity in the Company’s consolidated balance sheets. For the three and nine months ended September 30, 2014, the change in fair value resulted in an unrealized gain of $0.8 million and $0.3 million, respectively, in other comprehensive income (loss). The Company assesses, both at inception and on an ongoing basis, the effectiveness of its qualifying cash flow hedge. Hedge ineffectiveness is reported as a component of interest expense, net in the Company’s consolidated statements of operations. There was no ineffectiveness recorded on the designated hedge during the three and nine months ended September 30, 2014. | ||||||||||
The fair value 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 is a summary of the notional amounts, maturity dates and fair values (liabilities) of the interest rate swap agreements outstanding as of September 30, 2014 (in thousands): | ||||||||||
Related debt | Notional amount at | Maturity date | Fair value at | |||||||
30-Sep-14 | 30-Sep-14 | |||||||||
Term loan facility (1) | $ | 100,000 | 3/1/19 | $ | 311 | |||||
Westford Residence Inn (2) | 6,438 | 10/1/15 | (99 | ) | ||||||
Oceanside Residence Inn/Burbank Residence Inn (2) | 38,700 | 1/13/15 | (91 | ) | ||||||
Oceanside Residence Inn/Burbank Residence Inn (2)/(3) | 38,440 | 1/13/17 | (61 | ) | ||||||
(1) Designated as a cash flow hedge. | ||||||||||
(2) Not designated as a cash flow hedge. | ||||||||||
(3) Effective date of the forward interest rate swap agreement is January 13, 2015, the same date the existing swap agreement matures. | ||||||||||
The carrying value of the Company’s other financial instruments approximates fair value due to the short-term nature of these financial instruments. | ||||||||||
Related_Parties
Related Parties | 9 Months Ended |
Sep. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions Disclosure [Text Block] | ' |
6. Related Parties | |
The Company has, and is expected to continue to engage in significant transactions with related parties. These transactions cannot be construed to be at arm’s length and the results of the Company’s operations may be different if these transactions were conducted with non-related parties. The Company’s independent members of the Board of Directors oversee and annually review the Company’s related party relationships (including the relationships disclosed in this section) and are required to approve any significant modifications to the existing relationships, as well as any new significant related party transactions. There have been no changes to the contracts and relationships discussed in the Company’s 2013 Annual Report on Form 10-K. The Board of Directors is not required to approve each individual transaction that falls under the related party relationships. However, under the direction of the Board of Directors, at least one member of the Company’s senior management team approves each related party transaction. | |
The term the “Apple REIT Entities” means the Company, Apple REIT Six, Inc. (“Apple Six”), Apple REIT Seven, Inc. (“Apple Seven”), Apple REIT Eight, Inc. (“Apple Eight”) and Apple REIT Ten, Inc. (“Apple Ten”). The term the “Advisors” means Apple Six Advisors, Inc., Apple Seven Advisors, Inc., Apple Eight Advisors, Inc., Apple Nine Advisors, Inc. (“A9A”), Apple Ten Advisors, Inc. (“A10A”), Apple Suites Realty Group, Inc. (“ASRG”) and Apple Six Realty Group, Inc. The Advisors are wholly owned by Glade M. Knight, Executive Chairman of the Company and formerly Chairman and Chief Executive Officer of the Company. Prior to the A7 and A8 mergers, Mr. Knight was Chairman and Chief Executive Officer of Apple Seven and Apple Eight and is currently Chairman and Chief Executive Officer of Apple Ten. Prior to the A7 and A8 mergers, members of the Company’s Board of Directors were also on the Board of Directors of Apple Seven and/or Apple Eight. Currently, one member of the Company’s Board of Directors is also on the Board of Directors of Apple Ten. | |
A7 and A8 Mergers and Related Transactions | |
Effective March 1, 2014, the Company completed its mergers with Apple Seven and Apple Eight. As contemplated in the Merger Agreement, in connection with the A7 and A8 mergers, the Company became self-advised and Apple Seven, Apple Eight and the Company terminated their advisory agreements with their respective Advisors, and Apple Fund Management, Inc. (“AFM”) became a wholly owned subsidiary of the Company. Prior to the A7 and A8 mergers, AFM was a wholly owned subsidiary of A9A. As a result, the employees, including management, are now employed by the Company, rather than the Company’s external advisor. In addition, from and after the A7 and A8 mergers, the Company provides to Apple Ten the advisory services contemplated under the A10A advisory agreement and the Company receives fees and reimbursement of expenses payable under the A10A advisory agreement from Apple Ten. | |
Pursuant to the terms of the termination agreement dated August 7, 2013, as amended, the advisory agreements and property acquisition/disposition agreements with respect to Apple Seven, Apple Eight and the Company were terminated effective immediately before the completion of the A7 and A8 mergers. No separate payments were made in connection with the termination of the advisory agreements and property acquisition/disposition agreements, and as a result, effective March 1, 2014, Apple Seven, Apple Eight and the Company no longer pay the various fees previously paid to their respective Advisors. As a result, the Company’s outstanding Series B convertible preferred shares were converted into the Company’s common shares in accordance with the provisions of the Company’s articles of incorporation and the Company’s outstanding Series A preferred shares were automatically terminated. In conjunction with this event, during the first quarter of 2014, the Company recorded a non-cash expense totaling approximately $117.1 million, included in the Company’s consolidated statements of operations, to reflect the fair value estimate of the conversion of the Series B preferred shares to common shares at $10.10 per common share. | |
Pursuant to the assignment and transfer agreement dated August 7, 2013, as amended (the “Transfer Agreement”) between the Company, A9A and AFM, the Company acquired all of the membership interests in AFM from A9A effective immediately following the completion of the A7 and A8 mergers by assuming AFM’s assets and liabilities at historical cost, which approximated fair market value. The assets, net of liabilities were not material. In accordance with the Transfer Agreement, the Company has assumed all of the obligations of the predecessor owners of AFM under prior transfer agreements involving the transfer of the membership interests in AFM (including Apple Hospitality Two, Inc., Apple Hospitality Five, Inc., Apple Six and A9A) and relieved the predecessor owners and the other advisory companies of any liability with respect to AFM which is not considered significant. | |
Pursuant to the subcontract agreement dated August 7, 2013, as amended (the “Subcontract Agreement”) between the Company and A10A, A10A has subcontracted its obligations under the advisory agreement between A10A and Apple Ten to the Company. The Subcontract Agreement provides that, from and after the completion of the A7 and A8 mergers, the Company will provide to Apple Ten advisory services for a fee and will be reimbursed by Apple Ten for the use of the Company’s employees and corporate office and other costs associated with the advisory agreement. The amount reimbursed to the Company will be based on a good faith estimate of the proportionate amount of time incurred by the Company’s employees on behalf of Apple Ten. The subcontract with Apple Ten provides for an annual fee that will range from 0.1% to 0.25% (based on Apple Ten’s operating results) of total equity proceeds received by Apple Ten. Total advisory fees earned and total reimbursed costs received by the Company from Apple Ten during the nine months ended September 30, 2014 totaled approximately $0.8 million and approximately $1.7 million, respectively, and are recorded as reductions to general and administrative expenses in the Company’s consolidated statements of operations. | |
Advisory Services and Office Related Costs Prior to A7 and A8 Mergers | |
Prior to the A7 and A8 mergers, the Company was externally managed and did not have any employees. Its advisor, A9A provided the Company with its day-to-day management. ASRG provided the Company with property acquisition and disposition services. The Company paid fees (ranging from 0.1% to 0.25% of total equity proceeds received by the Company) and reimbursed certain costs to A9A and ASRG for these services. A9A provided the management services to the Company through an affiliate, AFM, a wholly owned subsidiary of A9A prior to the A7 and A8 mergers. Apple Seven and Apple Eight were also externally managed, and had similar arrangements with external advisors and AFM prior to the A7 and A8 mergers. Prior to the A7 and A8 mergers, total advisory fees incurred by the Company under the advisory agreement with A9A totaled approximately $0.5 million and $2.1 million for the nine months ended September 30, 2014 and 2013, respectively and are included in general and administrative expenses in the Company’s consolidated statements of operations. In addition to the fees payable to A9A, prior to the A7 and A8 mergers, the Company reimbursed to A9A, or paid directly to AFM on behalf of A9A, approximately $0.5 million and $1.6 million for the nine months ended September 30, 2014 and 2013, respectively. The costs are included in general and administrative expenses and are for the Company’s allocated share of the staffing and related costs provided by AFM at the direction of A9A. | |
In addition, any costs associated with the Apple REIT Entities’ and Advisors’ headquarters in Richmond, Virginia and Fort Worth, Texas office lease, including office rent, utilities, office supplies, etc. (“Office Related Costs”), were allocated to the Apple REIT Entities and Advisors, as applicable, prior to the A7 and A8 mergers. Following the completion of the A7 and A8 mergers, Office Related Costs are allocated between the Company and Apple Ten. | |
Professional Fees | |
The Company incurs professional fees such as accounting, auditing, legal and reporting, which are included in general and administrative expenses in the Company’s consolidated statements of operations. To be cost effective, these services received by the Company are shared as applicable by the Company and the other Apple REIT Entities. The professionals cannot always specifically identify their fees for one company; therefore management allocates these costs across the companies that benefit from the services, which following the completion of the A7 and A8 mergers include only the Company and Apple Ten. The Company and other Apple REIT Entities have incurred legal fees associated with the legal proceedings discussed in Note 9 and the settlement with the SEC discussed in the Company’s 2013 Annual Report on Form 10-K. The total costs for these legal matters for all of the Apple REIT Entities (excluding Apple Six after its merger in May 2013 and legal costs associated with the purported class action related to the A7 and A8 mergers discussed in Note 2) were approximately $0.8 million and $2.2 million for the nine months ended September 30, 2014 and 2013, respectively, of which approximately $0.7 million and $0.5 million, respectively was allocated to the Company. During the fourth quarter of 2013, the Apple REIT Entities entered into a release agreement with its primary directors’ and officers’ liability insurance carrier related to claims submitted by the Apple REIT Entities pertaining to these matters, of which approximately $0.1 million was reimbursed directly to the Company during the nine months ended September 30, 2014. The Company anticipates it will continue to incur costs associated with the legal proceedings discussed herein. | |
Apple Air Holding, LLC (“Apple Air”) | |
The Company, through a jointly-owned subsidiary, Apple Air, owns a Learjet used primarily for acquisition, asset management and renovation purposes. Prior to the A7 and A8 mergers, the Company owned a 24% equity investment in Apple Air and the other members of Apple Air were Apple Seven, Apple Eight and Apple Ten. Effective March 1, 2014, with the completion of A7 and A8 mergers, the Company acquired the equity interests in Apple Air of Apple Seven and Apple Eight for a total purchase price of approximately $3.0 million, which approximated fair market value, resulting in a 74% total equity ownership in Apple Air. Effective with the A7 and A8 mergers, Apple Air is now jointly owned by the Company and Apple Ten, with Apple Ten’s ownership interest accounted for as a minority interest, which as of September 30, 2014, totaled $1.1 million and is included in accounts payable and other liabilities in the Company’s consolidated balance sheet. Prior to the A7 and A8 mergers, the Company recorded its share of income and losses of Apple Air’s entity under the equity method of accounting and adjusted its investment in Apple Air accordingly. The Company’s equity investment was approximately $1.7 million as of December 31, 2013. | |
Shareholders_Equity
Shareholders' Equity | 9 Months Ended | |
Sep. 30, 2014 | ||
Stockholders' Equity Note [Abstract] | ' | |
Stockholders' Equity Note Disclosure [Text Block] | ' | |
7. Shareholders’ Equity | ||
Monthly Distributions | ||
For the three months ended September 30, 2014 and 2013, the Company made distributions of $0.1667 and $0.2076 per common share for a total of $62.3 million and $37.9 million, respectively. For the nine months ended September 30, 2014 and 2013, the Company made distributions of $0.5250 and $0.6227 per common share for a total of $169.9 million and $113.6 million, respectively. As contemplated by the A7 and A8 mergers, the annual distribution rate was reduced from $0.83025 per common share to $0.66 per common share, effective with the March 2014 distribution. Effective with the September 2014 distribution, the Company’s Board of Directors increased the annual distribution rate from $0.66 per common share to $0.68 per common share. The Company expects that the distribution will continue to be paid monthly. | ||
Series A Preferred Shares and Series B Convertible Preferred Shares | ||
Prior to the A7 and A8 mergers: | ||
· | Approximately 182.8 million Series A preferred shares were issued and outstanding, which had no voting rights and no conversion rights. In addition, the Series A preferred shares were not separately tradable from the common shares to which they related; and | |
· | 480,000 Series B convertible preferred shares were issued to Glade M. Knight, Executive Chairman of the Company and formerly Chairman and Chief Executive Officer of the Company, in exchange for the payment by him of $0.10 per Series B convertible preferred share, or an aggregate of $48,000. There were no dividends payable on the Series B convertible preferred shares. | |
As contemplated in the Merger Agreement, in connection with completion of the A7 and A8 mergers, the Company became self-advised and the advisory agreements between the Company and A9A and ASRG were terminated. In accordance with the terms of the Company’s articles of incorporation, the termination of the advisory agreements resulted in the conversion of each issued and outstanding Series B convertible preferred share of the Company into 24.17104 common shares of the Company, or a total of approximately 11.6 million common shares. Additionally, as a result of the conversion, and in accordance with the terms of the Company’s articles of incorporation, all of the Company’s Series A preferred shares were terminated and the Company now only has common shares outstanding. In conjunction with this event, during the first quarter of 2014, the Company recorded a non-cash expense totaling approximately $117.1 million, included in the Company’s consolidated statements of operations, to reflect the fair value estimate of the conversion of the Series B preferred shares to common shares at $10.10 per common share. | ||
In connection with the A7 and A8 mergers, in March 2014 the Company’s articles of incorporation were amended and restated to, among other things, increase the number of authorized common shares from 400 million to 800 million. | ||
During the second quarter of 2014, the Company paid a total of approximately $2.3 million to shareholders holding approximately 0.2 million as converted common shares, who exercised appraisal rights in connection with the A7 and A8 mergers and related transactions, which was recorded as a reduction to shareholders’ equity and common shares outstanding. | ||
Compensation_Plans
Compensation Plans | 9 Months Ended |
Sep. 30, 2014 | |
Disclosure Text Block Supplement [Abstract] | ' |
Compensation and Employee Benefit Plans [Text Block] | ' |
8. Compensation Plans | |
In May 2014, the Board of Directors approved the Apple Hospitality REIT, Inc. 2014 Omnibus Incentive Plan (“Omnibus Plan”). The Omnibus Plan permits the grant of awards of stock options, stock appreciation rights, restricted stock, stock units, unrestricted stock, dividend equivalent rights, performance shares and other performance-based awards, other equity-based awards, and cash bonus awards to any employee, officer, or director of the Company or an affiliate of the Company, a consultant or adviser currently providing services to the Company or an affiliate of the Company, or any other person whose participation in the Omnibus Plan is determined by the Compensation Committee of the Board of Directors to be in the best interests of the Company. The maximum number of the Company’s common shares available for issuance under the Omnibus Plan is 10 million. As of September 30, 2014, no shares or awards had been issued under the Omnibus Plan. | |
Also in May 2014, the Board of Directors approved an incentive plan (“2014 Incentive Plan”), effective March 1, 2014, for participants and established incentive goals for 2014. Under the 2014 Incentive Plan, participants will be eligible to receive a bonus to be determined pursuant to a weighted average formula based on the achievement of certain 2014 full year pro forma performance measures. The range of payout under the 2014 Incentive Plan is $0 - $12 million. Based on performance through September 30, 2014, the Company has accrued approximately $5.9 million as a liability for potential bonus payments, which is included in accounts payable and other liabilities in the Company’s consolidated balance sheets as of September 30, 2014. Compensation expense recognized by the Company under the 2014 Incentive Plan is included in general and administrative expense and totaled $2.6 million and $5.7 million for the three and nine months ended September 30, 2014. A portion of any awards under the 2014 Incentive Plan, if any, may be issued in restricted stock under the Omnibus Plan, 50% of which would vest upon issuance and 50% would vest at the end of 2015. | |
Legal_Proceedings
Legal Proceedings | 9 Months Ended |
Sep. 30, 2014 | |
Disclosure Text Block Supplement [Abstract] | ' |
Legal Matters and Contingencies [Text Block] | ' |
9. Legal Proceedings | |
On April 23, 2014, the United States Court of Appeals for the Second Circuit (the “Second Circuit”) entered a summary order in the consolidated class action referred to in the Company’s prior filings as the In re Apple REITs Litigation matter. In the summary order, the Second Circuit affirmed the dismissal by the United States District Court for the Eastern District of New York (the “District Court”) of the plaintiffs’ state and federal securities law claims and the unjust enrichment claim. The Second Circuit also noted that the District Court dismissed the plaintiffs’ remaining state common law claims based on its finding that the complaint did not allege any losses suffered by the plaintiff class, and held that, to the extent that the District Court relied on this rationale, its dismissal of the plaintiffs’ state law breach of fiduciary duty, aiding and abetting a breach of fiduciary duty, and negligence claims is vacated and remanded for further proceedings consistent with the summary order. Following remand, on June 6, 2014, defendants moved to dismiss plaintiffs’ remaining claims. The Company will defend against the claims remanded to the District Court vigorously. At this time, the Company cannot reasonably predict the outcome of these proceedings or provide a reasonable estimate of the possible loss or range of loss due to these proceedings, if any. | |
On January 31, 2014, two shareholders of the Company commenced a purported class action against the Company and its directors (the “Defendants”) in the United States District Court for the Eastern District of Virginia (DCG&T, et al. v. Knight, et al., No. 3:14cv67, E.D. Va.). An amended complaint was filed on March 24, 2014. The amended complaint alleges (i) that the A7 and A8 mergers are unfair to the Company’s shareholders, (ii) various breaches of fiduciary duty by the Company’s directors in connection with the A7 and A8 mergers, (iii) that the A7 and A8 mergers provide a financial windfall to insiders, and (iv) that the Joint Proxy Statement/Prospectus mailed to the Company’s shareholders in connection with the A7 and A8 mergers contains false and misleading disclosures about certain matters, and adds as parties certain Company management employees. | |
The amended complaint demands (i) an order stating that the action may be maintained as a class action, certifying plaintiffs as class representatives, and that the action may be maintained as a derivative action, (ii) that the merger and the conversion of common and preferred shares be rescinded, (iii) an award of damages, and (iv) reimbursement of plaintiffs’ attorneys’ fees and other costs. On May 5, 2014, the Defendants moved to dismiss the amended complaint and filed an answer. | |
The Company believes that plaintiffs’ claims are without merit and intends to defend these cases vigorously. At this time, the Company cannot reasonably predict the outcome of these proceedings or provide a reasonable estimate of the possible loss or range of loss due to these proceedings, if any. | |
On April 22, 2014, Plaintiff Susan Moses, purportedly a shareholder of Apple Seven and Apple Eight, now part of the Company, filed a class action against the Company and several individual directors on behalf of all then-existing shareholders and former shareholders of Apple Seven and Apple Eight, now part of the Company, who purchased additional shares under the Apple REITs’ Dividend Reinvestment Plans (“DRIP”) between July 17, 2007 and February 12, 2014 (Susan Moses, et al. v. Apple Hospitality REIT, Inc., et al., No. 503487/2014, N.Y. Sup. (Kings County)). Plaintiff brought suit in the Supreme Court of the State of New York in Kings County (Brooklyn) and alleged claims under Virginia law for breach of fiduciary duty against the individual directors, and constructive trust and unjust enrichment claims against the Company. Plaintiff alleges that the prices at which Plaintiff and the purported class members purchased additional shares through the DRIP were artificially inflated and not indicative of the true value of units in Apple Seven and Apple Eight. On May 19, 2014, defendants removed the action to the United States District Court for the Eastern District of New York. Following the filing of defendants’ motion to dismiss and strike on June 6, 2014, Plaintiff filed an amended complaint on June 27, 2014 adding a claim for breach of contract. On July 14, 2014, defendants moved to dismiss and strike Plaintiff’s amended complaint. | |
The Company believes that Plaintiff’s claims are without merit and intends to defend this case vigorously. At this time, the Company cannot reasonably predict the outcome of these proceedings or provide a reasonable estimate of the possible loss or range of loss due to these proceedings, if any. | |
On June 16, 2014, Plaintiff Dorothy Wenzel, purportedly a shareholder of Apple Seven and Apple Eight, now part of the Company, filed a class action against Apple Seven Advisors, Inc., Apple Eight Advisors, Inc., AFM and several officers and directors of the Company on behalf of all then-existing shareholders and former shareholders of Apple Seven and Apple Eight, now part of the Company, who purchased additional shares under the Apple REITs' Dividend Reinvestment Plans ("DRIP") between July 17, 2007 and June 30, 2013 (Wenzel v. Knight, et al., Case No. 3:14-cv-00432-REP, E.D. Va.). Plaintiff brought suit in the United States District Court for the Eastern District of Virginia and alleged claims under Virginia law for breach of fiduciary duty against the individual directors, as well as aiding and abetting a breach of fiduciary duty and negligence against Apple Seven Advisors, Inc., Apple Eight Advisors, Inc., and AFM. Plaintiff alleges that the prices at which Plaintiff and the purported class members purchased additional shares through the DRIP were artificially inflated and not indicative of the true value of units in Apple Seven and Apple Eight. On July 18, 2014, defendants moved to dismiss the complaint or to transfer the action to the Eastern District of New York to be consolidated with the Moses action. | |
The Company believes that Plaintiff's claims are without merit and intends to defend this case vigorously. At this time, the Company cannot reasonably predict the outcome of these proceedings or provide a reasonable estimate of the possible loss or range of loss due to these proceedings, if any. | |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
10. Subsequent Events | |
In October 2014, the Company declared and paid approximately $21.2 million, or $0.056667 per outstanding common share, in distributions to its common shareholders. | |
In October 2014, the Company acquired, through a foreclosure sale, a Hampton Inn and Suites containing 88 rooms located in Burleson, Texas. The foreclosure was a result of the borrower defaulting on a mortgage note collateralized by the hotel. The mortgage note was purchased by the Company for approximately $5.4 million, representing a discount to the outstanding principal, during 2010 resulting in a gain on the foreclosure transaction. | |
In October 2014, the Board of Directors approved reinstating the Company’s share redemption program on a limited basis. Redemptions will be limited to death or disability of a shareholder. The number of common shares that may be redeemed in any given year will also be limited based on the Company’s results of operations, cash flow from operations, and cash required for funding investing and financing activities. If requested redemptions exceed funds available for redemption, redemptions will be made on a pro rata basis. The next scheduled redemption date will occur in January 2015 and will be made at $9.20 per common share. The Board of Directors will continue to review the redemption program and may, from time to time, change the terms (including the redemption price) of, suspend or terminate the redemption program as it deems prudent. | |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' |
Organization | |
Apple Hospitality REIT, Inc., formerly known as Apple REIT Nine, Inc., together with its wholly owned subsidiaries (the “Company”), is a Virginia corporation that has elected to be treated as a real estate investment trust (“REIT”) for federal income tax purposes. The Company is a self-advised REIT that invests in income-producing real estate in the United States. The Company’s fiscal year end is December 31. The Company has no foreign operations or assets and its operating structure includes only one segment. The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated. As of September 30, 2014, the Company owned 188 hotels with an aggregate of 23,489 rooms located in 33 states. | |
Basis of Accounting, Policy [Policy Text Block] | ' |
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 accounting principles generally accepted in the United States 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 2013 Annual Report on Form 10-K. Operating results for the three and nine months ended September 30, 2014 are not necessarily indicative of the results that may be expected for the twelve month period ending December 31, 2014. | |
Use of Estimates, Policy [Policy Text Block] | ' |
Use of Estimates | |
The preparation of the financial statements in conformity with United States generally accepted accounting principles 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. | |
Reclassification, Policy [Policy Text Block] | ' |
Reclassifications | |
Certain prior period amounts in the consolidated financial statements have been reclassified to conform to the current period presentation with no effect on previously reported net income (loss) or shareholders’ equity. | |
Comprehensive Income, Policy [Policy Text Block] | ' |
Comprehensive Income (Loss) | |
Comprehensive income (loss) includes net income (loss) and other comprehensive income, which is comprised of an unrealized gain resulting from a hedging activity. | |
Earnings Per Share, Policy [Policy Text Block] | ' |
Earnings Per Common Share | |
Basic earnings per common share is computed based upon the weighted average number of shares outstanding during the period. Diluted earnings per common share is calculated after giving effect to all potential common shares that were dilutive and outstanding for the period. There were no potential common shares with a dilutive effect for both the three and nine months ended September 30, 2014 and 2013. As a result, basic and dilutive outstanding shares were the same. As discussed in Note 2, as a result of becoming self-advised, the Series B convertible preferred shares converted to common shares effective March 1, 2014, resulting in approximately 11.6 million additional common shares outstanding. These additional common shares are included in the denominator for basic earnings and diluted earnings per common share from March 1, 2014. | |
New Accounting Pronouncements, Policy [Policy Text Block] | ' |
Recent Accounting Standards | |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606), which affects virtually all aspects of an entity’s revenue recognition. The core principle of the new standard is that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those years. Early adoption is not permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. | |
In April 2014, the FASB issued ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which changes the requirements for reporting discontinued operations. Under this standard, only disposals representing a strategic shift that have, or will have, a major effect on operations and financial results should be presented as discontinued operations. As a result, the operations of sold properties will be included in continuing operations through the date of their disposal, unless the sale represents a strategic shift. The standard applies to all disposals (or classifications as held for sale) of components of an entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. Early adoption is permitted. The Company adopted the new standard effective January 1, 2014. Under this standard, the Company anticipates that the majority of hotel sales will not be classified as discontinued operations. |
Mergers_with_Apple_REIT_Seven_1
Mergers with Apple REIT Seven, Inc. and Apple REIT Eight, Inc. (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | 'The following table summarizes the Company’s purchase price allocation for the A7 and A8 mergers, which represents its best estimate of the fair values of the assets acquired and liabilities assumed on March 1, 2014, the effective date of the mergers (in thousands): | ||||||||||||||||
Purchase Price Allocation | |||||||||||||||||
Assets: | |||||||||||||||||
Land | $ | 395,250 | |||||||||||||||
Building and improvements | 1,776,208 | ||||||||||||||||
Furniture, fixtures and equipment | 112,013 | ||||||||||||||||
Franchise fees | 3,296 | ||||||||||||||||
Investment in real estate | 2,286,767 | ||||||||||||||||
Cash and cash equivalents, restricted cash, due from third party managers and other assets | 75,951 | ||||||||||||||||
Total assets | 2,362,718 | ||||||||||||||||
Liabilities: | |||||||||||||||||
Credit facilities | 129,490 | ||||||||||||||||
Mortgage debt | 393,209 | ||||||||||||||||
Accounts payable and other liabilities | 25,406 | ||||||||||||||||
Total liabiities | 548,105 | ||||||||||||||||
Fair value estimate of net assets acquired | $ | 1,814,613 | |||||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | 'The aggregate amounts of the estimated lease payments pertaining to all of the ground leases assumed in the A7 and A8 mergers, for the five years subsequent to September 30, 2014 and thereafter are as follows (in thousands): | ||||||||||||||||
Total | |||||||||||||||||
2014 (October - December) | $ | 1,367 | |||||||||||||||
2015 | 5,523 | ||||||||||||||||
2016 | 5,655 | ||||||||||||||||
2017 | 5,788 | ||||||||||||||||
2018 | 5,924 | ||||||||||||||||
Thereafter | 295,556 | ||||||||||||||||
Total | $ | 319,813 | |||||||||||||||
Business Acquisition, Pro Forma Information [Table Text Block] | 'The following unaudited pro forma information for the three and nine month periods ended September 30, 2014 and 2013, is presented as if the A7 and A8 mergers, effective March 1, 2014, had occurred on January 1, 2013, and is based on assumptions and estimates considered appropriate by the Company. The pro forma information is provided for illustrative purposes only and does not necessarily reflect what the operating results would have been had the mergers been completed on January 1, 2013, nor is it necessarily indicative of future operating results. The pro forma information does not give effect to any cost synergies or other operating efficiencies that could result from the mergers. Amounts are in thousands except per share data. | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Revenue | $ | 231,884 | $ | 215,962 | $ | 662,421 | $ | 622,021 | |||||||||
Net income | $ | 35,612 | $ | 39,393 | $ | 107,242 | $ | 106,893 | |||||||||
Net income per share - basic and diluted | $ | 0.1 | $ | 0.11 | $ | 0.29 | $ | 0.29 | |||||||||
Weighted average common shares outstanding - basic and diluted | 373,821 | 373,821 | 373,821 | 373,597 |
Investment_in_Real_Estate_Tabl
Investment in Real Estate (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Real Estate [Abstract] | ' | ||||||||
Property, Plant and Equipment [Table Text Block] | 'The Company’s total investment in real estate consisted of the following (in thousands): | ||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Land | $ | 539,196 | $ | 143,946 | |||||
Building and Improvements | 3,144,634 | 1,360,634 | |||||||
Furniture, Fixtures and Equipment | 254,097 | 126,218 | |||||||
Franchise Fees | 7,868 | 4,572 | |||||||
Construction in Progress | 28,170 | 8,882 | |||||||
3,973,965 | 1,644,252 | ||||||||
Less Accumulated Depreciation | (281,626 | ) | (200,754 | ) | |||||
Investment in Real Estate, net | $ | 3,692,339 | $ | 1,443,498 | |||||
Schedule of Real Estate Properties [Table Text Block] | 'As of September 30, 2014, the Company owned 188 hotels with an aggregate of 23,489 rooms located in 33 states. The table below shows the number of hotels and rooms by brand: | ||||||||
Number of Hotels and Guest Rooms by Brand | |||||||||
Number of | Number of | ||||||||
Brand | Hotels | Rooms | |||||||
Courtyard | 34 | 4,391 | |||||||
Hampton Inn | 32 | 3,731 | |||||||
Hilton Garden Inn | 31 | 4,118 | |||||||
Residence Inn | 25 | 2,864 | |||||||
Homewood Suites | 24 | 2,645 | |||||||
SpringHill Suites | 14 | 1,868 | |||||||
TownePlace Suites | 11 | 1,105 | |||||||
Fairfield Inn | 8 | 944 | |||||||
Marriott | 3 | 842 | |||||||
Embassy Suites | 2 | 316 | |||||||
Home2 Suites | 2 | 237 | |||||||
Hilton | 1 | 224 | |||||||
Renaissance | 1 | 204 | |||||||
Total | 188 | 23,489 |
Credit_Facility_and_Mortgage_D1
Credit Facility and Mortgage Debt (Tables) | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||||||||||||
Schedule of Debt [Table Text Block] | 'As of September 30, 2014, the Company had $516.3 million in mortgage debt secured by 47 properties, with maturity dates ranging from April 2015 to October 2032, stated interest rates ranging from 0% to 6.90% and effective interest rates ranging from 3.66% to 6.52%. The following table sets forth the hotel property securing each loan, the interest rate, loan assumption or origination date, maturity date, the principal amount assumed or originated, and the outstanding balance as of September 30, 2014 and December 31, 2013 for each of the Company’s debt obligations. All dollar amounts are in thousands. | ||||||||||||||||||||||||||
Location | Brand | Interest Rate (1) | Loan Assumption or Origination Date | Maturity Date | Principal Assumed or Originated | Outstanding balance as of September 30, 2014 | Outstanding balance as of December 31, 2013 | ||||||||||||||||||||
Richmond, VA | Marriott | 6.95 | % | 3/1/14 | -2 | $ | 21,524 | $ | 0 | $ | 0 | ||||||||||||||||
Suffolk, VA | TownePlace Suites | 6.03 | % | 3/1/14 | (3) | 6,138 | 0 | 0 | |||||||||||||||||||
Suffolk, VA | Courtyard | 6.03 | % | 3/1/14 | (3) | 8,002 | 0 | 0 | |||||||||||||||||||
New Orleans, LA | Homewood Suites | 5.85 | % | 3/1/14 | -4 | 14,331 | 0 | 0 | |||||||||||||||||||
Overland Park, KS | Residence Inn | 5.74 | % | 3/1/14 | 4/1/15 | 6,018 | 5,889 | 0 | |||||||||||||||||||
Dallas, TX | Hilton | 6.63 | % | 5/17/11 | 6/6/15 | 20,988 | 19,076 | 19,545 | |||||||||||||||||||
Rogers, AR | Hampton Inn | 5.2 | % | 8/31/10 | 9/1/15 | 8,337 | 7,641 | 7,781 | |||||||||||||||||||
St. Louis, MO | Hampton Inn | 5.3 | % | 8/31/10 | 9/1/15 | 13,915 | 12,771 | 13,001 | |||||||||||||||||||
Kansas City, MO | Hampton Inn | 5.45 | % | 8/31/10 | 10/1/15 | 6,517 | 5,997 | 6,102 | |||||||||||||||||||
Westford, MA | Residence Inn | 5.3 | % | -5 | 3/1/14 | 10/1/15 | 6,530 | 6,438 | 0 | ||||||||||||||||||
Allen, TX | Hilton Garden Inn | 5.37 | % | 10/31/08 | 10/11/15 | 10,787 | 9,618 | 9,787 | |||||||||||||||||||
Kansas City, MO | Residence Inn | 5.74 | % | 3/1/14 | 11/1/15 | 10,602 | 10,475 | 0 | |||||||||||||||||||
Fayetteville, NC | Residence Inn | 5.14 | % | 3/1/14 | 12/1/15 | 6,545 | 6,451 | 0 | |||||||||||||||||||
Austin, TX | Homewood Suites | 5.99 | % | 4/14/09 | 3/1/16 | 7,556 | 6,541 | 6,702 | |||||||||||||||||||
Austin, TX | Hampton Inn | 5.95 | % | 4/14/09 | 3/1/16 | 7,553 | 6,534 | 6,696 | |||||||||||||||||||
Tupelo, MS | Hampton Inn | 5.9 | % | 3/1/14 | 3/1/16 | 3,124 | 3,022 | 0 | |||||||||||||||||||
Houston, TX | Residence Inn | 5.71 | % | 3/1/14 | 3/1/16 | 9,930 | 9,801 | 0 | |||||||||||||||||||
Hilton Head, SC | Hilton Garden Inn | 6.29 | % | 3/1/14 | 4/11/16 | 5,557 | 5,455 | 0 | |||||||||||||||||||
Round Rock, TX | Hampton Inn | 5.95 | % | 3/6/09 | 5/1/16 | 4,175 | 3,613 | 3,701 | |||||||||||||||||||
Highlands Ranch, CO | Residence Inn | 5.94 | % | 3/1/14 | 6/1/16 | 10,494 | 10,378 | 0 | |||||||||||||||||||
Texarkana, TX | Hampton Inn & Suites | 6.9 | % | 1/31/11 | 7/8/16 | 4,954 | 4,687 | 4,747 | |||||||||||||||||||
Bristol, VA | Courtyard | 6.59 | % | 11/7/08 | 8/1/16 | 9,767 | 8,964 | 9,086 | |||||||||||||||||||
Virginia Beach, VA | Courtyard | 6.02 | % | 3/1/14 | 11/11/16 | 13,931 | 13,767 | 0 | |||||||||||||||||||
Virginia Beach, VA | Courtyard | 6.02 | % | 3/1/14 | 11/11/16 | 16,813 | 16,615 | 0 | |||||||||||||||||||
Charlottesville, VA | Courtyard | 6.02 | % | 3/1/14 | 11/11/16 | 14,892 | 14,716 | 0 | |||||||||||||||||||
Carolina Beach, NC | Courtyard | 6.02 | % | 3/1/14 | 11/11/16 | 12,009 | 11,868 | 0 | |||||||||||||||||||
Winston-Salem, NC | Courtyard | 5.94 | % | 3/1/14 | 12/8/16 | 7,458 | 7,385 | 0 | |||||||||||||||||||
Lewisville, TX (6) | Hilton Garden Inn | 0 | % | 10/16/08 | 12/31/16 | 3,750 | 2,000 | 2,000 | |||||||||||||||||||
Oceanside, CA | Residence Inn | 4.24 | % | -5 | 3/1/14 | 1/13/17 | 15,662 | 15,480 | 0 | ||||||||||||||||||
Burbank, CA | Residence Inn | 4.24 | % | -5 | 3/1/14 | 1/13/17 | 23,493 | 23,220 | 0 | ||||||||||||||||||
Savannah, GA | Hilton Garden Inn | 5.87 | % | 3/1/14 | 2/1/17 | 4,977 | 4,888 | 0 | |||||||||||||||||||
Greenville, SC | Residence Inn | 6.03 | % | 3/1/14 | 2/8/17 | 6,012 | 5,949 | 0 | |||||||||||||||||||
Birmingham, AL | Homewood Suites | 6.03 | % | 3/1/14 | 2/8/17 | 10,908 | 10,795 | 0 | |||||||||||||||||||
Jacksonville, FL | Homewood Suites | 6.03 | % | 3/1/14 | 2/8/17 | 15,856 | 15,691 | 0 | |||||||||||||||||||
Concord, NC | Hampton Inn | 6.1 | % | 3/1/14 | 3/1/17 | 4,718 | 4,666 | 0 | |||||||||||||||||||
Irving, TX | Homewood Suites | 5.83 | % | 12/29/10 | 4/11/17 | 6,052 | 5,481 | 5,605 | |||||||||||||||||||
Duncanville, TX | Hilton Garden Inn | 5.88 | % | 10/21/08 | 5/11/17 | 13,966 | 12,725 | 12,907 | |||||||||||||||||||
Grapevine, TX | Hilton Garden Inn | 4.89 | % | 8/29/12 | 9/1/22 | 11,810 | 11,319 | 11,509 | |||||||||||||||||||
Collegeville/Philadelphia, PA | Courtyard | 4.89 | % | 8/30/12 | 9/1/22 | 12,650 | 12,124 | 12,327 | |||||||||||||||||||
Hattiesburg, MS | Courtyard | 5 | % | 3/1/14 | 9/1/22 | 5,732 | 5,659 | 0 | |||||||||||||||||||
Rancho Bernardo, CA | Courtyard | 5 | % | 3/1/14 | 9/1/22 | 15,060 | 14,867 | 0 | |||||||||||||||||||
Kirkland, WA | Courtyard | 5 | % | 3/1/14 | 9/1/22 | 12,145 | 11,989 | 0 | |||||||||||||||||||
Seattle, WA | Residence Inn | 4.96 | % | 3/1/14 | 9/1/22 | 28,269 | 27,903 | 0 | |||||||||||||||||||
Anchorage, AK | Embassy Suites | 4.97 | % | 9/13/12 | 10/1/22 | 23,230 | 22,319 | 22,686 | |||||||||||||||||||
Somerset, NJ | Courtyard | 4.73 | % | 3/1/14 | 10/6/22 | 8,750 | 8,634 | 0 | |||||||||||||||||||
Tukwila, WA | Homewood Suites | 4.73 | % | 3/1/14 | 10/6/22 | 9,431 | 9,306 | 0 | |||||||||||||||||||
Prattville, AL | Courtyard | 4.12 | % | 3/1/14 | 2/6/23 | 6,596 | 6,503 | 0 | |||||||||||||||||||
Huntsville, AL | Homewood Suites | 4.12 | % | 3/1/14 | 2/6/23 | 8,306 | 8,188 | 0 | |||||||||||||||||||
San Diego, CA | Residence Inn | 3.97 | % | 3/1/14 | 3/6/23 | 18,600 | 18,332 | 0 | |||||||||||||||||||
Miami, FL | Homewood Suites | 4.02 | % | 3/1/14 | 4/1/23 | 16,677 | 16,440 | 0 | |||||||||||||||||||
New Orleans, LA | Homewood Suites | 4.36 | % | 7/17/14 | 8/11/24 | -4 | 27,000 | 26,953 | 0 | ||||||||||||||||||
Malvern/Philadelphia, PA | Courtyard | 6.5 | % | 11/30/10 | 10/1/32 | -7 | 7,894 | 7,185 | 7,337 | ||||||||||||||||||
585,991 | 516,318 | 161,519 | |||||||||||||||||||||||||
Unamortized fair value adjustment of assumed debt | 11,196 | 5,560 | 1,032 | ||||||||||||||||||||||||
Total | $ | 597,187 | $ | 521,878 | $ | 162,551 | |||||||||||||||||||||
-1 | Unless otherwise noted, these rates are the rates per the loan agreement. For loans assumed, the Company adjusted the interest rates to market rates and is amortizing the adjustments to interest expense over the life of the loan. | ||||||||||||||||||||||||||
-2 | Loan (assumed on March 1, 2014) was repaid in full on June 3, 2014. | ||||||||||||||||||||||||||
-3 | Loans (assumed on March 1, 2014) were repaid in full on July 1, 2014. | ||||||||||||||||||||||||||
-4 | On July 1, 2014, the Company repaid in full the mortgage loan assumed with the A7 and A8 mergers, and on July 17, 2014 the Company originated new debt secured by this hotel. | ||||||||||||||||||||||||||
-5 | The annual fixed interest rate gives effect to an interest rate swap agreement assumed by the Company with the mortgage debt. | ||||||||||||||||||||||||||
-6 | Unsecured loan. | ||||||||||||||||||||||||||
-7 | Outstanding principal balance is callable by lender or prepayable by the Company beginning on October 1, 2016, and every five years thereafter until maturity, subject to certain conditions. | ||||||||||||||||||||||||||
Schedule of Maturities of Long-term Debt [Table Text Block] | 'The aggregate amounts of principal payable under the Company’s total debt obligations (including mortgage debt and the balance outstanding under the Company’s credit facility), for the five years subsequent to September 30, 2014 and thereafter are as follows (in thousands): | ||||||||||||||||||||||||||
2014 (October - December) | $ | 3,042 | |||||||||||||||||||||||||
2015 | 93,888 | ||||||||||||||||||||||||||
2016 | 135,658 | ||||||||||||||||||||||||||
2017 | 99,394 | ||||||||||||||||||||||||||
2018 | 80,506 | ||||||||||||||||||||||||||
Thereafter | 278,830 | ||||||||||||||||||||||||||
691,318 | |||||||||||||||||||||||||||
Unamortized fair value adjustment of assumed debt | 5,560 | ||||||||||||||||||||||||||
Total | $ | 696,878 |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||
Schedule of Interest Rate Derivatives [Table Text Block] | 'The following is a summary of the notional amounts, maturity dates and fair values (liabilities) of the interest rate swap agreements outstanding as of September 30, 2014 (in thousands): | |||||||||
Related debt | Notional amount at | Maturity date | Fair value at | |||||||
30-Sep-14 | 30-Sep-14 | |||||||||
Term loan facility (1) | $ | 100,000 | 3/1/19 | $ | 311 | |||||
Westford Residence Inn (2) | 6,438 | 10/1/15 | (99 | ) | ||||||
Oceanside Residence Inn/Burbank Residence Inn (2) | 38,700 | 1/13/15 | (91 | ) | ||||||
Oceanside Residence Inn/Burbank Residence Inn (2)/(3) | 38,440 | 1/13/17 | (61 | ) | ||||||
(1) Designated as a cash flow hedge. | ||||||||||
(2) Not designated as a cash flow hedge. | ||||||||||
(3) Effective date of the forward interest rate swap agreement is January 13, 2015, the same date the existing swap agreement matures. |
Organization_and_Summary_of_Si1
Organization and Summary of Significant Accounting Policies (Details) | 3 Months Ended | 9 Months Ended | 0 Months Ended | ||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Mar. 01, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
Termination of Advisory Agreements [Member] | Hotels [Member] | Aggregate Hotel Rooms [Member] | |||||
Series B Convertible Preferred Shares Converted to Common Shares [Member] | |||||||
Apple Seven and Apple Eight Mergers and Related Transactions [Member] | |||||||
Organization and Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Number of Reportable Segments | ' | ' | 1 | ' | ' | ' | ' |
Number of Real Estate Properties | ' | ' | ' | ' | ' | 188 | ' |
Number of Units in Real Estate Property | ' | ' | ' | ' | ' | ' | 23,489 |
Number of States in which Entity Operates | ' | ' | ' | ' | ' | 33 | ' |
Weighted Average Number Diluted Shares Outstanding Adjustment | 0 | 0 | 0 | 0 | ' | ' | ' |
Stock Issued During Period, Shares, Conversion of Convertible Securities | ' | ' | ' | ' | 11,600,000 | ' | ' |
Mergers_with_Apple_REIT_Seven_2
Mergers with Apple REIT Seven, Inc. and Apple REIT Eight, Inc. (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | 9 Months Ended | 12 Months Ended | 21 Months Ended | |||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Mar. 01, 2014 | Mar. 01, 2014 | Mar. 01, 2014 | Mar. 01, 2014 | Mar. 01, 2014 | Jun. 30, 2014 | Mar. 01, 2014 | Mar. 01, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Mar. 01, 2014 | Mar. 01, 2014 | Sep. 30, 2014 | Mar. 03, 2014 | Mar. 01, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Mar. 01, 2014 | |
Termination of Advisory Agreements [Member] | Total Consideration of Apple Hospitality's Common Shares Transferred [Member] | Hotels Acquired from Apple Seven and Apple Eight Mergers [Member] | Common Shares Outstanding Prior to the Mergers [Member] | Common Shares Outstanding Effective with the Mergers [Member] | Exercised Appraisal Rights on As-Converted Common Shares [Member] | Apple Seven Unit and Series B Convertible Preferred Stock Conversion [Member] | Apple Eight Unit and Series B Convertible Preferred Stock Conversion [Member] | Hotels [Member] | Aggregate Hotel Rooms [Member] | Excluded From Pro Forma Amounts [Member] | Excluded From Pro Forma Amounts [Member] | Excluded From Pro Forma Amounts [Member] | Excluded From Pro Forma Amounts [Member] | Assumed Mortgage Debt [Member] | Credit Facilities Assumed [Member] | $345 Million Unsecured Credit Facility [Member] | $345 Million Unsecured Credit Facility [Member] | Apple Seven and Apple Eight Mergers [Member] | Apple Seven and Apple Eight Mergers [Member] | Apple Seven and Apple Eight Mergers [Member] | Apple Seven and Apple Eight Mergers [Member] | Apple Seven and Apple Eight Mergers [Member] | Apple Seven and Apple Eight Mergers [Member] | ||||||
Series B Convertible Preferred Shares Converted to Common Shares [Member] | Apple Seven and Apple Eight Mergers and Related Transactions [Member] | Apple Seven and Apple Eight Mergers and Related Transactions [Member] | Apple Seven and Apple Eight Mergers and Related Transactions [Member] | Apple Seven and Apple Eight Mergers [Member] | Apple Seven and Apple Eight Mergers [Member] | Apple Seven and Apple Eight Mergers [Member] | Apple Seven and Apple Eight Mergers and Related Transactions [Member] | Apple Seven and Apple Eight Mergers and Related Transactions [Member] | Apple Seven and Apple Eight Mergers and Related Transactions [Member] | Apple Seven and Apple Eight Mergers and Related Transactions [Member] | Apple Seven and Apple Eight Mergers [Member] | Apple Seven and Apple Eight Mergers [Member] | Ground Leases Acquired [Member] | Costs Incurred to Defend Ongoing Purported Class Action [Member] | |||||||||||||||
Apple Seven and Apple Eight Mergers and Related Transactions [Member] | Apple Hospitality [Member] | Apple Hospitality [Member] | Apple Hospitality [Member] | ||||||||||||||||||||||||||
Mergers with Apple REIT Seven, Inc. and Apple REIT Eight, Inc. (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Shares, Outstanding (in Shares) | 373,820,814 | ' | 373,820,814 | ' | 182,784,131 | ' | ' | ' | 182,800,000 | 374,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unit Description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'one Apple Seven common share together with one Apple Seven Series A preferred share | 'one Apple Eight common share together with one Apple Eight Series A preferred share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Unit Exchange Ratio (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 0.85 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Common Shares Issued from Conversion of Acquiree Units (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90,600,000 | 78,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible Preferred Stock, Shares Issued upon Conversion (in Shares) | ' | ' | ' | ' | ' | 24.17104 | ' | ' | ' | ' | ' | 24.17104 | 24.17104 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Common Shares Issued from Conversion of Acquiree Preferred Stock (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,800,000 | 4,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Value, Acquisitions | ' | ' | $1,814,613,000 | $0 | ' | ' | $1,800,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Acquisitions (in Shares) | ' | ' | ' | ' | ' | ' | 180,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value Estimate of Company Common Stock Per Share (in Dollars per share) | ' | ' | ' | ' | ' | $10.10 | $10.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Conversion of Convertible Securities (in Shares) | ' | ' | ' | ' | ' | 11,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible Preferred Stock Converted to Other Securities | 0 | 0 | 117,133,000 | 0 | ' | 117,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 117,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments for Repurchase of Common Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchased During Period, Shares (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Real Estate Properties | ' | ' | ' | ' | ' | ' | ' | 99 | ' | ' | ' | ' | ' | 188 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Units in Real Estate Property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23,489 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of States in which Entity Operates | ' | ' | ' | ' | ' | ' | ' | 27 | ' | ' | ' | ' | ' | 33 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transaction Costs | 707,000 | 1,908,000 | 4,593,000 | 2,044,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | 1,900,000 | 3,500,000 | 2,000,000 | ' | ' | ' | ' | ' | 800,000 | 3,500,000 | 3,100,000 | 6,600,000 | ' |
Noncash or Part Noncash Acquisition, Debt Assumed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 385,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Hotel Properties Used to Secure Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Credit Facilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 129,500,000 | ' | ' | ' | ' | ' | ' | ' | 129,490,000 |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 345,000,000 | 345,000,000 | ' | ' | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Number of Properties Subject to Ground Leases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11 | ' | ' | ' | ' | ' |
Description of Lessee Leasing Arrangements, Operating Leases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'remaining terms ranging from approximately 18 to 92 years, excluding any option periods to extend the initial lease term | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Acquired Leased Intangible Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21,100,000 | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Acquired Leased Intangible Liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,800,000 | ' | ' | ' | ' | ' |
Revenues | 231,884,000 | 100,237,000 | 601,573,000 | 297,212,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 282,700,000 | ' | ' | ' |
Operating Income (Loss) | $42,055,000 | $20,817,000 | $3,191,000 | $66,417,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $63,700,000 | ' | ' | ' |
Mergers_with_Apple_REIT_Seven_3
Mergers with Apple REIT Seven, Inc. and Apple REIT Eight, Inc. (Details) - Schedule of Business Acquisition Purchase Price Allocation (Apple Seven and Apple Eight Mergers [Member], USD $) | Mar. 01, 2014 |
In Thousands, unless otherwise specified | |
Apple Seven and Apple Eight Mergers [Member] | ' |
Assets: | ' |
Land | $395,250 |
Building and improvements | 1,776,208 |
Furniture, fixtures and equipment | 112,013 |
Franchise fees | 3,296 |
Investment in real estate | 2,286,767 |
Cash and cash equivalents, restricted cash, due from third party managers and other assets | 75,951 |
Total assets | 2,362,718 |
Liabilities: | ' |
Credit facilities | 129,490 |
Mortgage debt | 393,209 |
Accounts payable and other liabilities | 25,406 |
Total liabiities | 548,105 |
Fair value estimate of net assets acquired | $1,814,613 |
Mergers_with_Apple_REIT_Seven_4
Mergers with Apple REIT Seven, Inc. and Apple REIT Eight, Inc. (Details) - Schedule of Future Minimum Rental Payments for Operating Leases Assumed in Mergers (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Schedule of Future Minimum Rental Payments for Operating Leases Assumed in Mergers [Abstract] | ' |
2014 (October - December) | $1,367 |
2015 | 5,523 |
2016 | 5,655 |
2017 | 5,788 |
2018 | 5,924 |
Thereafter | 295,556 |
Total | $319,813 |
Mergers_with_Apple_REIT_Seven_5
Mergers with Apple REIT Seven, Inc. and Apple REIT Eight, Inc. (Details) - Business Acquisition, Pro Forma Information (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Business Acquisition, Pro Forma Information [Abstract] | ' | ' | ' | ' |
Revenue | $231,884 | $215,962 | $662,421 | $622,021 |
Net income | $35,612 | $39,393 | $107,242 | $106,893 |
Net income per share - basic and diluted (in Dollars per share) | $0.10 | $0.11 | $0.29 | $0.29 |
Weighted average common shares outstanding - basic and diluted (in Shares) | 373,821 | 373,821 | 373,821 | 373,597 |
Investment_in_Real_Estate_Deta
Investment in Real Estate (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | ||||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Mar. 01, 2014 | Mar. 01, 2014 | Mar. 01, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 01, 2014 |
Hotels Acquired from Apple Seven and Apple Eight Mergers [Member] | Hotels and Aggregate Hotel Rooms Acquired from Apple Seven Merger [Member] | Hotels and Aggregate Hotel Rooms Acquired from Apple Eight Merger [Member] | Properties for Potential Sale [Member] | Hotels [Member] | Aggregate Hotel Rooms [Member] | Apple Seven and Apple Eight Mergers [Member] | |||||
Investment in Real Estate (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Real Estate Properties | ' | ' | ' | ' | 99 | 48 | 51 | 22 | 188 | ' | ' |
Number of Units in Real Estate Property | ' | ' | ' | ' | ' | 6,205 | 5,913 | ' | ' | 23,489 | ' |
Number of States in which Entity Operates | ' | ' | ' | ' | 27 | ' | ' | ' | 33 | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Investment in Real Estate (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,286,767 |
Impairment of Real Estate (in Dollars) | $8,600 | $0 | $8,600 | $0 | ' | ' | ' | $8,600 | ' | ' | ' |
Investment_in_Real_Estate_Deta1
Investment in Real Estate (Details) - Investment in Real Estate (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investment in Real Estate [Abstract] | ' | ' |
Land | $539,196 | $143,946 |
Building and Improvements | 3,144,634 | 1,360,634 |
Furniture, Fixtures and Equipment | 254,097 | 126,218 |
Franchise Fees | 7,868 | 4,572 |
Construction in Progress | 28,170 | 8,882 |
3,973,965 | 1,644,252 | |
Less Accumulated Depreciation | -281,626 | -200,754 |
Investment in Real Estate, net | $3,692,339 | $1,443,498 |
Investment_in_Real_Estate_Deta2
Investment in Real Estate (Details) - Number of Hotels and Rooms by Brand | Sep. 30, 2014 |
Courtyard [Member] | ' |
Real Estate Properties [Line Items] | ' |
Number of Hotels | 34 |
Number of Rooms | 4,391 |
Hampton Inn [Member] | ' |
Real Estate Properties [Line Items] | ' |
Number of Hotels | 32 |
Number of Rooms | 3,731 |
Hilton Garden Inn [Member] | ' |
Real Estate Properties [Line Items] | ' |
Number of Hotels | 31 |
Number of Rooms | 4,118 |
Residence Inn [Member] | ' |
Real Estate Properties [Line Items] | ' |
Number of Hotels | 25 |
Number of Rooms | 2,864 |
Homewood Suites [Member] | ' |
Real Estate Properties [Line Items] | ' |
Number of Hotels | 24 |
Number of Rooms | 2,645 |
SpringHill Suites [Member] | ' |
Real Estate Properties [Line Items] | ' |
Number of Hotels | 14 |
Number of Rooms | 1,868 |
TownePlace Suites [Member] | ' |
Real Estate Properties [Line Items] | ' |
Number of Hotels | 11 |
Number of Rooms | 1,105 |
Fairfield Inn [Member] | ' |
Real Estate Properties [Line Items] | ' |
Number of Hotels | 8 |
Number of Rooms | 944 |
Marriott [Member] | ' |
Real Estate Properties [Line Items] | ' |
Number of Hotels | 3 |
Number of Rooms | 842 |
Embassy Suites [Member] | ' |
Real Estate Properties [Line Items] | ' |
Number of Hotels | 2 |
Number of Rooms | 316 |
Home2 Suites [Member] | ' |
Real Estate Properties [Line Items] | ' |
Number of Hotels | 2 |
Number of Rooms | 237 |
Hilton [Member] | ' |
Real Estate Properties [Line Items] | ' |
Number of Hotels | 1 |
Number of Rooms | 224 |
Renaissance [Member] | ' |
Real Estate Properties [Line Items] | ' |
Number of Hotels | 1 |
Number of Rooms | 204 |
Total [Member] | ' |
Real Estate Properties [Line Items] | ' |
Number of Hotels | 188 |
Number of Rooms | 23,489 |
Credit_Facility_and_Mortgage_D2
Credit Facility and Mortgage Debt (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Mar. 01, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 03, 2014 | Sep. 30, 2014 | Mar. 03, 2014 | Mar. 01, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 03, 2014 | Sep. 30, 2014 | Mar. 03, 2014 | Mar. 01, 2014 |
Credit Facilities Assumed [Member] | $245 Million Unsecured Revolving Credit Facility [Member] | $245 Million Unsecured Revolving Credit Facility [Member] | $245 Million Unsecured Revolving Credit Facility [Member] | $245 Million Unsecured Revolving Credit Facility [Member] | Unsecured $100 Million Term Loan [Member] | Unsecured $100 Million Term Loan [Member] | Assumed Mortgage Debt [Member] | Mortgage Debt [Member] | $345 Million Unsecured Credit Facility [Member] | $345 Million Unsecured Credit Facility [Member] | $345 Million Unsecured Credit Facility [Member] | $345 Million Unsecured Credit Facility [Member] | $345 Million Unsecured Credit Facility [Member] | Termination of $50 Million Revolving Credit Facility [Member] | Apple Seven and Apple Eight Mergers [Member] | |||
Apple Seven and Apple Eight Mergers [Member] | $345 Million Unsecured Credit Facility [Member] | $345 Million Unsecured Credit Facility [Member] | $345 Million Unsecured Credit Facility [Member] | $345 Million Unsecured Credit Facility [Member] | $345 Million Unsecured Credit Facility [Member] | $345 Million Unsecured Credit Facility [Member] | Apple Seven and Apple Eight Mergers [Member] | London Interbank Offered Rate (LIBOR) [Member] | London Interbank Offered Rate (LIBOR) [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | |||||||||||||||
Credit Facility and Mortgage Debt (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Credit Facilities (in Dollars) | ' | ' | $129,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $129,490,000 |
Line of Credit Facility, Initiation Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3-Mar-14 | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity (in Dollars) | ' | ' | ' | ' | ' | 245,000,000 | 245,000,000 | ' | ' | ' | ' | ' | ' | ' | 345,000,000 | 345,000,000 | 50,000,000 | ' |
Long-term Line of Credit (in Dollars) | 175,000,000 | 0 | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | 175,000,000 | 9,600,000 | ' |
Debt Instrument, Face Amount (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'At closing of the new credit facility, the Company borrowed $150 million under the new facility which was primarily used to repay Apple Seven’s, Apple Eight’s and the Company’s outstanding balances on their respective credit facilities and to pay approximately $3.3 million in closing costs | ' | ' | ' |
Amount Borrowed at Closing to Extinguish Previous Lines of Credit and Pay Closing Cost (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150,000,000 | ' | ' | ' |
Debt Issuance Cost (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,900,000 | ' | ' | ' | ' | 3,300,000 | ' | ' | ' |
Line of Credit Facility, Borrowing Capacity, Description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'The $345 million credit facility may be increased to $700 million, subject to certain conditions. | ' | ' |
Debt Instrument, Maturity Date, Description | ' | ' | ' | ' | ' | 'matures in March 2018; however, the Company has the right, upon satisfaction of certain conditions, including covenant compliance and payment of an extension fee, to extend the maturity date to March 2019 | ' | 'matures in March 2019 | ' | 'ranging from September 2014 to April 2023 | 'maturity dates ranging from April 2015 to October 2032 | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Description of Variable Rate Basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'one-month LIBOR | ' | ' | ' | ' |
Debt Instrument, Basis Spread on Variable Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.55% | 2.35% | ' | ' | ' | ' | ' |
Derivative, Description of Hedged Item | ' | ' | ' | ' | ' | ' | ' | 'In conjunction with the $100 million term loan, the Company entered into an interest rate swap agreement for the same notional amount and maturity as the term loan. The interest rate swap agreement effectively provides the Company with payment requirements equal to a fixed interest rate on the term loan through the maturity of the loan in March 2019 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | ' | ' | ' | 0.20% | 0.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Interest Rate at Period End | ' | ' | ' | ' | ' | 1.76% | ' | 3.13% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Covenant Terms | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'The $345 million credit facility contains customary affirmative covenants, negative covenants and events of defaults. In addition, the credit facility contains covenants restricting the level of certain investments and the following quarterly financial covenants (capitalized terms are defined in the credit agreement).· A ratio of Consolidated Total Indebtedness to Consolidated EBITDA of not more than 6.00 to 1.00 (subject to a higher amount in certain circumstances);· A ratio of Consolidated Secured Indebtedness to Consolidated Total Assets of not more than 45%;· A minimum Consolidated Tangible Net Worth of $2.3 billion (plus 75% of the Net Cash Proceeds from issuances and sales of Equity Interests occurring after the Closing Date);· A ratio of Adjusted Consolidated EBITDA to Consolidated Fixed Charges 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 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 of not more than 60%;· A ratio of Consolidated Secured Recourse Indebtedness to Consolidated Total Assets of not more than 10%; and· Restricted payments (including distributions and share repurchases), net of any proceeds from a dividend reinvestment plan, cannot exceed 100% of Funds From Operations during the Initial Period or any fiscal year thereafter, unless the Company is required to distribute more to meet REIT requirements. The percentage is reduced to 95% in the first fiscal year after a public listing of the Company’s equity interests.The Company was in compliance with each of the applicable covenants at September 30, 2014. | ' | ' |
Noncash or Part Noncash Acquisition, Debt Assumed (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 385,100,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Hotel Properties Used to Secure Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34 | 47 | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.97% | 0.00% | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.95% | 6.90% | ' | ' | ' | ' | ' | ' | ' |
Liabilities, Fair Value Adjustment (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,100,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Effective Percentage Rate Range, Minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.66% | 3.66% | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Effective Percentage Rate Range, Maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.68% | 6.52% | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Gross (in Dollars) | $691,318,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $516,300,000 | ' | ' | ' | ' | ' | ' | ' |
Credit_Facility_and_Mortgage_D3
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Outstanding balance | $691,318 | ' | |
Unamortized fair value adjustment of assumed debt | 5,560 | ' | |
Total | 521,878 | 162,551 | |
Marriott Richmond, VA [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Marriott | ' | |
Interest Rate | 6.95% | [1] | ' |
Loan Assumption or Origination Date | 1-Mar-14 | ' | |
Principal Assumed or Originated | 21,524 | ' | |
Outstanding balance | 0 | [2] | 0 |
TownePlace Suites Suffolk, VA [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'TownePlace Suites | ' | |
Interest Rate | 6.03% | [1] | ' |
Loan Assumption or Origination Date | 1-Mar-14 | ' | |
Principal Assumed or Originated | 6,138 | ' | |
Outstanding balance | 0 | [3] | 0 |
Courtyard Suffolk, VA [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Courtyard | ' | |
Interest Rate | 6.03% | [1] | ' |
Loan Assumption or Origination Date | 1-Mar-14 | ' | |
Principal Assumed or Originated | 8,002 | ' | |
Outstanding balance | 0 | [3] | 0 |
Homewood Suites New Orleans, LA [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Homewood Suites | ' | |
Interest Rate | 5.85% | [1] | ' |
Loan Assumption or Origination Date | 1-Mar-14 | ' | |
Principal Assumed or Originated | 14,331 | ' | |
Outstanding balance | 0 | [4] | 0 |
Residence Inn Overland Park, KS [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Residence Inn | ' | |
Interest Rate | 5.74% | [1] | ' |
Loan Assumption or Origination Date | 1-Mar-14 | ' | |
Maturity Date | 1-Apr-15 | ' | |
Principal Assumed or Originated | 6,018 | ' | |
Outstanding balance | 5,889 | 0 | |
Hilton Dallas, TX [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Hilton | ' | |
Interest Rate | 6.63% | [1] | ' |
Loan Assumption or Origination Date | 17-May-11 | ' | |
Maturity Date | 6-Jun-15 | ' | |
Principal Assumed or Originated | 20,988 | ' | |
Outstanding balance | 19,076 | 19,545 | |
Hampton Inn Rogers, AR [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Hampton Inn | ' | |
Interest Rate | 5.20% | [1] | ' |
Loan Assumption or Origination Date | 31-Aug-10 | ' | |
Maturity Date | 1-Sep-15 | ' | |
Principal Assumed or Originated | 8,337 | ' | |
Outstanding balance | 7,641 | 7,781 | |
Hampton Inn St. Louis, MO [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Hampton Inn | ' | |
Interest Rate | 5.30% | [1] | ' |
Loan Assumption or Origination Date | 31-Aug-10 | ' | |
Maturity Date | 1-Sep-15 | ' | |
Principal Assumed or Originated | 13,915 | ' | |
Outstanding balance | 12,771 | 13,001 | |
Hampton Inn Kansas City, MO [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Hampton Inn | ' | |
Interest Rate | 5.45% | [1] | ' |
Loan Assumption or Origination Date | 31-Aug-10 | ' | |
Maturity Date | 1-Oct-15 | ' | |
Principal Assumed or Originated | 6,517 | ' | |
Outstanding balance | 5,997 | 6,102 | |
Residence Inn Westford, MA [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Residence Inn | ' | |
Interest Rate | 5.30% | [1],[5] | ' |
Loan Assumption or Origination Date | 1-Mar-14 | ' | |
Maturity Date | 1-Oct-15 | ' | |
Principal Assumed or Originated | 6,530 | ' | |
Outstanding balance | 6,438 | 0 | |
Hilton Garden Inn Allen, TX [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Hilton Garden Inn | ' | |
Interest Rate | 5.37% | [1] | ' |
Loan Assumption or Origination Date | 31-Oct-08 | ' | |
Maturity Date | 11-Oct-15 | ' | |
Principal Assumed or Originated | 10,787 | ' | |
Outstanding balance | 9,618 | 9,787 | |
Residence Inn Kansas City, MO [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Residence Inn | ' | |
Interest Rate | 5.74% | [1] | ' |
Loan Assumption or Origination Date | 1-Mar-14 | ' | |
Maturity Date | 1-Nov-15 | ' | |
Principal Assumed or Originated | 10,602 | ' | |
Outstanding balance | 10,475 | 0 | |
Residence Inn Fayetteville, NC [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Residence Inn | ' | |
Interest Rate | 5.14% | [1] | ' |
Loan Assumption or Origination Date | 1-Mar-14 | ' | |
Maturity Date | 1-Dec-15 | ' | |
Principal Assumed or Originated | 6,545 | ' | |
Outstanding balance | 6,451 | 0 | |
Homewood Suites Austin, TX [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Homewood Suites | ' | |
Interest Rate | 5.99% | [1] | ' |
Loan Assumption or Origination Date | 14-Apr-09 | ' | |
Maturity Date | 1-Mar-16 | ' | |
Principal Assumed or Originated | 7,556 | ' | |
Outstanding balance | 6,541 | 6,702 | |
Hampton Inn Austin, TX [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Hampton Inn | ' | |
Interest Rate | 5.95% | [1] | ' |
Loan Assumption or Origination Date | 14-Apr-09 | ' | |
Maturity Date | 1-Mar-16 | ' | |
Principal Assumed or Originated | 7,553 | ' | |
Outstanding balance | 6,534 | 6,696 | |
Hampton Inn Tupelo, MS [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Hampton Inn | ' | |
Interest Rate | 5.90% | [1] | ' |
Loan Assumption or Origination Date | 1-Mar-14 | ' | |
Maturity Date | 1-Mar-16 | ' | |
Principal Assumed or Originated | 3,124 | ' | |
Outstanding balance | 3,022 | 0 | |
Residence Inn Houston, TX [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Residence Inn | ' | |
Interest Rate | 5.71% | [1] | ' |
Loan Assumption or Origination Date | 1-Mar-14 | ' | |
Maturity Date | 1-Mar-16 | ' | |
Principal Assumed or Originated | 9,930 | ' | |
Outstanding balance | 9,801 | 0 | |
Hilton Garden Inn Hilton Head, SC [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Hilton Garden Inn | ' | |
Interest Rate | 6.29% | [1] | ' |
Loan Assumption or Origination Date | 1-Mar-14 | ' | |
Maturity Date | 11-Apr-16 | ' | |
Principal Assumed or Originated | 5,557 | ' | |
Outstanding balance | 5,455 | 0 | |
Hampton Inn Round Rock, TX [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Hampton Inn | ' | |
Interest Rate | 5.95% | [1] | ' |
Loan Assumption or Origination Date | 6-Mar-09 | ' | |
Maturity Date | 1-May-16 | ' | |
Principal Assumed or Originated | 4,175 | ' | |
Outstanding balance | 3,613 | 3,701 | |
Residence Inn Highlands Ranch, CO [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Residence Inn | ' | |
Interest Rate | 5.94% | [1] | ' |
Loan Assumption or Origination Date | 1-Mar-14 | ' | |
Maturity Date | 1-Jun-16 | ' | |
Principal Assumed or Originated | 10,494 | ' | |
Outstanding balance | 10,378 | 0 | |
Hampton Inn & Suites Texarkana, TX [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Hampton Inn & Suites | ' | |
Interest Rate | 6.90% | [1] | ' |
Loan Assumption or Origination Date | 31-Jan-11 | ' | |
Maturity Date | 8-Jul-16 | ' | |
Principal Assumed or Originated | 4,954 | ' | |
Outstanding balance | 4,687 | 4,747 | |
Courtyard Bristol, VA [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Courtyard | ' | |
Interest Rate | 6.59% | [1] | ' |
Loan Assumption or Origination Date | 7-Nov-08 | ' | |
Maturity Date | 1-Aug-16 | ' | |
Principal Assumed or Originated | 9,767 | ' | |
Outstanding balance | 8,964 | 9,086 | |
Courtyard Virginia Beach, VA [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Courtyard | ' | |
Interest Rate | 6.02% | [1] | ' |
Loan Assumption or Origination Date | 1-Mar-14 | ' | |
Maturity Date | 11-Nov-16 | ' | |
Principal Assumed or Originated | 13,931 | ' | |
Outstanding balance | 13,767 | 0 | |
Courtyard Virginia Beach, VA #2 [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Courtyard | ' | |
Interest Rate | 6.02% | [1] | ' |
Loan Assumption or Origination Date | 1-Mar-14 | ' | |
Maturity Date | 11-Nov-16 | ' | |
Principal Assumed or Originated | 16,813 | ' | |
Outstanding balance | 16,615 | 0 | |
Courtyard Charlottesville, VA [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Courtyard | ' | |
Interest Rate | 6.02% | [1] | ' |
Loan Assumption or Origination Date | 1-Mar-14 | ' | |
Maturity Date | 11-Nov-16 | ' | |
Principal Assumed or Originated | 14,892 | ' | |
Outstanding balance | 14,716 | 0 | |
Courtyard Carolina Beach, NC [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Courtyard | ' | |
Interest Rate | 6.02% | [1] | ' |
Loan Assumption or Origination Date | 1-Mar-14 | ' | |
Maturity Date | 11-Nov-16 | ' | |
Principal Assumed or Originated | 12,009 | ' | |
Outstanding balance | 11,868 | 0 | |
Courtyard Winston-Salem, NC [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Courtyard | ' | |
Interest Rate | 5.94% | [1] | ' |
Loan Assumption or Origination Date | 1-Mar-14 | ' | |
Maturity Date | 8-Dec-16 | ' | |
Principal Assumed or Originated | 7,458 | ' | |
Outstanding balance | 7,385 | 0 | |
Hilton Garden Inn Lewisville, TX [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Hilton Garden Inn | [6] | ' |
Interest Rate | 0.00% | [1] | ' |
Loan Assumption or Origination Date | 16-Oct-08 | ' | |
Maturity Date | 31-Dec-16 | ' | |
Principal Assumed or Originated | 3,750 | ' | |
Outstanding balance | 2,000 | 2,000 | |
Residence Inn Oceanside, CA [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Residence Inn | ' | |
Interest Rate | 4.24% | [1],[5] | ' |
Loan Assumption or Origination Date | 1-Mar-14 | ' | |
Maturity Date | 13-Jan-17 | ' | |
Principal Assumed or Originated | 15,662 | ' | |
Outstanding balance | 15,480 | 0 | |
Residence Inn Burbank, CA [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Residence Inn | ' | |
Interest Rate | 4.24% | [1],[5] | ' |
Loan Assumption or Origination Date | 1-Mar-14 | ' | |
Maturity Date | 13-Jan-17 | ' | |
Principal Assumed or Originated | 23,493 | ' | |
Outstanding balance | 23,220 | 0 | |
Hilton Garden Inn Savannah, GA [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Hilton Garden Inn | ' | |
Interest Rate | 5.87% | [1] | ' |
Loan Assumption or Origination Date | 1-Mar-14 | ' | |
Maturity Date | 1-Feb-17 | ' | |
Principal Assumed or Originated | 4,977 | ' | |
Outstanding balance | 4,888 | 0 | |
Residence Inn Greenville, SC [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Residence Inn | ' | |
Interest Rate | 6.03% | [1] | ' |
Loan Assumption or Origination Date | 1-Mar-14 | ' | |
Maturity Date | 8-Feb-17 | ' | |
Principal Assumed or Originated | 6,012 | ' | |
Outstanding balance | 5,949 | 0 | |
Homewood Suites Birmingham, AL [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Homewood Suites | ' | |
Interest Rate | 6.03% | [1] | ' |
Loan Assumption or Origination Date | 1-Mar-14 | ' | |
Maturity Date | 8-Feb-17 | ' | |
Principal Assumed or Originated | 10,908 | ' | |
Outstanding balance | 10,795 | 0 | |
Homewood Suites Jacksonville, FL [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Homewood Suites | ' | |
Interest Rate | 6.03% | [1] | ' |
Loan Assumption or Origination Date | 1-Mar-14 | ' | |
Maturity Date | 8-Feb-17 | ' | |
Principal Assumed or Originated | 15,856 | ' | |
Outstanding balance | 15,691 | 0 | |
Hampton Inn Concord, NC [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Hampton Inn | ' | |
Interest Rate | 6.10% | [1] | ' |
Loan Assumption or Origination Date | 1-Mar-14 | ' | |
Maturity Date | 1-Mar-17 | ' | |
Principal Assumed or Originated | 4,718 | ' | |
Outstanding balance | 4,666 | 0 | |
Homewood Suites Irving, TX [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Homewood Suites | ' | |
Interest Rate | 5.83% | [1] | ' |
Loan Assumption or Origination Date | 29-Dec-10 | ' | |
Maturity Date | 11-Apr-17 | ' | |
Principal Assumed or Originated | 6,052 | ' | |
Outstanding balance | 5,481 | 5,605 | |
Hilton Garden Inn Duncanville, TX [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Hilton Garden Inn | ' | |
Interest Rate | 5.88% | [1] | ' |
Loan Assumption or Origination Date | 21-Oct-08 | ' | |
Maturity Date | 11-May-17 | ' | |
Principal Assumed or Originated | 13,966 | ' | |
Outstanding balance | 12,725 | 12,907 | |
Hilton Garden Inn Grapevine, TX [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Hilton Garden Inn | ' | |
Interest Rate | 4.89% | [1] | ' |
Loan Assumption or Origination Date | 29-Aug-12 | ' | |
Maturity Date | 1-Sep-22 | ' | |
Principal Assumed or Originated | 11,810 | ' | |
Outstanding balance | 11,319 | 11,509 | |
Courtyard Philadelphia (Collegeville), PA [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Courtyard | ' | |
Interest Rate | 4.89% | [1] | ' |
Loan Assumption or Origination Date | 30-Aug-12 | ' | |
Maturity Date | 1-Sep-22 | ' | |
Principal Assumed or Originated | 12,650 | ' | |
Outstanding balance | 12,124 | 12,327 | |
Courtyard Hattiesburg, MS [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Courtyard | ' | |
Interest Rate | 5.00% | [1] | ' |
Loan Assumption or Origination Date | 1-Mar-14 | ' | |
Maturity Date | 1-Sep-22 | ' | |
Principal Assumed or Originated | 5,732 | ' | |
Outstanding balance | 5,659 | 0 | |
Courtyard Rancho Bernardo, CA [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Courtyard | ' | |
Interest Rate | 5.00% | [1] | ' |
Loan Assumption or Origination Date | 1-Mar-14 | ' | |
Maturity Date | 1-Sep-22 | ' | |
Principal Assumed or Originated | 15,060 | ' | |
Outstanding balance | 14,867 | 0 | |
Courtyard Kirkland, WA [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Courtyard | ' | |
Interest Rate | 5.00% | [1] | ' |
Loan Assumption or Origination Date | 1-Mar-14 | ' | |
Maturity Date | 1-Sep-22 | ' | |
Principal Assumed or Originated | 12,145 | ' | |
Outstanding balance | 11,989 | 0 | |
Residence Inn Seattle, WA [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Residence Inn | ' | |
Interest Rate | 4.96% | [1] | ' |
Loan Assumption or Origination Date | 1-Mar-14 | ' | |
Maturity Date | 1-Sep-22 | ' | |
Principal Assumed or Originated | 28,269 | ' | |
Outstanding balance | 27,903 | 0 | |
Embassy Suites Anchorage, AK [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Embassy Suites | ' | |
Interest Rate | 4.97% | [1] | ' |
Loan Assumption or Origination Date | 13-Sep-12 | ' | |
Maturity Date | 1-Oct-22 | ' | |
Principal Assumed or Originated | 23,230 | ' | |
Outstanding balance | 22,319 | 22,686 | |
Courtyard Somerset, NJ [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Courtyard | ' | |
Interest Rate | 4.73% | [1] | ' |
Loan Assumption or Origination Date | 1-Mar-14 | ' | |
Maturity Date | 6-Oct-22 | ' | |
Principal Assumed or Originated | 8,750 | ' | |
Outstanding balance | 8,634 | 0 | |
Homewood Suites Tukwila, WA [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Homewood Suites | ' | |
Interest Rate | 4.73% | [1] | ' |
Loan Assumption or Origination Date | 1-Mar-14 | ' | |
Maturity Date | 6-Oct-22 | ' | |
Principal Assumed or Originated | 9,431 | ' | |
Outstanding balance | 9,306 | 0 | |
Courtyard Pratville, AL [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Courtyard | ' | |
Interest Rate | 4.12% | [1] | ' |
Loan Assumption or Origination Date | 1-Mar-14 | ' | |
Maturity Date | 6-Feb-23 | ' | |
Principal Assumed or Originated | 6,596 | ' | |
Outstanding balance | 6,503 | 0 | |
Homewood Suites Huntsville, AL [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Homewood Suites | ' | |
Interest Rate | 4.12% | [1] | ' |
Loan Assumption or Origination Date | 1-Mar-14 | ' | |
Maturity Date | 6-Feb-23 | ' | |
Principal Assumed or Originated | 8,306 | ' | |
Outstanding balance | 8,188 | 0 | |
Residence Inn San Diego, CA [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Residence Inn | ' | |
Interest Rate | 3.97% | [1] | ' |
Loan Assumption or Origination Date | 1-Mar-14 | ' | |
Maturity Date | 6-Mar-23 | ' | |
Principal Assumed or Originated | 18,600 | ' | |
Outstanding balance | 18,332 | 0 | |
Homewood Suites Miami, FL [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Homewood Suites | ' | |
Interest Rate | 4.02% | [1] | ' |
Loan Assumption or Origination Date | 1-Mar-14 | ' | |
Maturity Date | 1-Apr-23 | ' | |
Principal Assumed or Originated | 16,677 | ' | |
Outstanding balance | 16,440 | 0 | |
Homewood Suites New Orleans, LA #2 [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Homewood Suites | ' | |
Interest Rate | 4.36% | [1] | ' |
Loan Assumption or Origination Date | 17-Jul-14 | ' | |
Maturity Date | 11-Aug-24 | [4] | ' |
Principal Assumed or Originated | 27,000 | ' | |
Outstanding balance | 26,953 | 0 | |
Courtyard Philadelphia (Malvern), PA [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Brand | 'Courtyard | ' | |
Interest Rate | 6.50% | [1] | ' |
Loan Assumption or Origination Date | 30-Nov-10 | ' | |
Maturity Date | 1-Oct-32 | [7] | ' |
Principal Assumed or Originated | 7,894 | ' | |
Outstanding balance | 7,185 | 7,337 | |
Total [Member] | ' | ' | |
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ' | ' | |
Principal Assumed or Originated | 585,991 | ' | |
Outstanding balance | 516,318 | 161,519 | |
Unamortized fair value adjustment of assumed debt | 11,196 | ' | |
Unamortized fair value adjustment of assumed debt | 5,560 | 1,032 | |
Total | 597,187 | ' | |
Total | $521,878 | $162,551 | |
[1] | Unless otherwise noted, these rates are the rates per the loan agreement. For loans assumed, the Company adjusted the interest rates to market rates and is amortizing the adjustments to interest expense over the life of the loan. | ||
[2] | Loan (assumed on March 1, 2014) was repaid in full on June 3, 2014. | ||
[3] | Loans (assumed on March 1, 2014) were repaid in full on July 1, 2014. | ||
[4] | On July 1, 2014, the Company repaid in full the mortgage loan assumed with the A7 and A8 mergers, and on July 17, 2014 the Company originated new debt secured by this hotel. | ||
[5] | The annual fixed interest rate gives effect to an interest rate swap agreement assumed by the Company with the mortgage debt. | ||
[6] | Unsecured loan. | ||
[7] | Outstanding principal balance is callable by lender or prepayable by the Company beginning on October 1, 2016, and every five years thereafter until maturity, subject to certain conditions. |
Credit_Facility_and_Mortgage_D4
Credit Facility and Mortgage Debt (Details) - Future Minimum Debt Payments (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Future Minimum Debt Payments [Abstract] | ' | ' |
2014 (October - December) | $3,042 | ' |
2015 | 93,888 | ' |
2016 | 135,658 | ' |
2017 | 99,394 | ' |
2018 | 80,506 | ' |
Thereafter | 278,830 | ' |
691,318 | ' | |
Unamortized fair value adjustment of assumed debt | 5,560 | ' |
Total | $696,878 | $162,600 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Fair Value of Financial Instruments (Details) [Line Items] | ' | ' | ' | ' | ' |
Long-term Debt | $696,878,000 | ' | $696,878,000 | ' | $162,600,000 |
Long-term Debt, Fair Value | 705,000,000 | ' | 705,000,000 | ' | 163,600,000 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | 757,000 | 0 | 311,000 | 0 | ' |
Interest Rate Swap Agreements Assumed March 1, 2014 [Member] | Apple Seven and Apple Eight Mergers [Member] | ' | ' | ' | ' | ' |
Fair Value of Financial Instruments (Details) [Line Items] | ' | ' | ' | ' | ' |
Number of Interest Rate Derivatives Held | 3 | ' | 3 | ' | ' |
Derivative, Notional Amount | 45,700,000 | ' | 45,700,000 | ' | ' |
Number of variable rate mortgage loans with interest rate swap agreements | 2 | ' | 2 | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Interest Rate Swaps | -500,000 | ' | -500,000 | ' | ' |
Derivative, Description of Terms | ' | ' | 'Company pays a fixed rate of interest and receives a floating rate of interest equal to the one month LIBOR | ' | ' |
Interest Rate Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net | -300,000 | ' | -300,000 | ' | ' |
Derivative, Gain (Loss) on Derivative, Net | 200,000 | ' | 300,000 | ' | ' |
Unsecured $100 Million Term Loan Interest Rate Swap [Member] | ' | ' | ' | ' | ' |
Fair Value of Financial Instruments (Details) [Line Items] | ' | ' | ' | ' | ' |
Derivative, Notional Amount | 100,000,000 | ' | 100,000,000 | ' | ' |
Derivative, Description of Terms | ' | ' | 'Company pays a fixed interest rate of 1.58% and receives a floating rate of interest equal to the one month LIBOR | ' | ' |
Derivative Inception Date | ' | ' | 'March 2014 | ' | ' |
Cash Flow Hedges Derivative Instruments at Fair Value, Net | 300,000 | ' | 300,000 | ' | ' |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | $800,000 | ' | $300,000 | ' | ' |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments (Details) - Schedule of Interest Rate Swap Agreements (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | |
Designated as Hedging Instrument [Member] | Unsecured $100 Million Term Loan Interest Rate Swap [Member] | ' | |
Fair Value of Financial Instruments (Details) - Schedule of Interest Rate Swap Agreements [Line Items] | ' | |
Notional amount | $100,000 | [1] |
Maturity date | 1-Mar-19 | |
Fair value | 311 | |
Not Designated as Hedging Instrument [Member] | Westford Residence Inn Interest Rate Swap [Member] | ' | |
Fair Value of Financial Instruments (Details) - Schedule of Interest Rate Swap Agreements [Line Items] | ' | |
Notional amount | 6,438 | [2] |
Maturity date | 1-Oct-15 | |
Fair value | -99 | |
Not Designated as Hedging Instrument [Member] | Burbank and Oceanside Residence Inns Interest Rate Swap [Member] | ' | |
Fair Value of Financial Instruments (Details) - Schedule of Interest Rate Swap Agreements [Line Items] | ' | |
Notional amount | 38,700 | [2] |
Maturity date | 13-Jan-15 | |
Fair value | -91 | |
Not Designated as Hedging Instrument [Member] | Burbank and Oceanside Residence Inns Interest Rate Swap #2 [Member] | ' | |
Fair Value of Financial Instruments (Details) - Schedule of Interest Rate Swap Agreements [Line Items] | ' | |
Notional amount | 38,440 | [2],[3] |
Maturity date | 13-Jan-17 | |
Fair value | -61 | |
Unsecured $100 Million Term Loan Interest Rate Swap [Member] | ' | |
Fair Value of Financial Instruments (Details) - Schedule of Interest Rate Swap Agreements [Line Items] | ' | |
Notional amount | $100,000 | |
[1] | Designated as a cash flow hedge. | |
[2] | Not designated as a cash flow hedge. | |
[3] | Effective date of the forward interest rate swap agreement is January 13, 2015, the same date the existing swap agreement matures. |
Related_Parties_Details
Related Parties (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Mar. 01, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 01, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Termination of Advisory Agreements [Member] | Apple Ten [Member] | Apple Ten [Member] | Apple Ten [Member] | Apple Ten [Member] | Apple Nine Advisors (A9A) [Member] | Apple Nine Advisors (A9A) [Member] | Apple Nine Advisors (A9A) [Member] | Apple Nine Advisors (A9A) [Member] | Apple Nine Advisors (A9A) [Member] | Apple Hospitality [Member] | Apple Air Holding, LLC [Member] | Apple Air Holding, LLC [Member] | Apple Air Holding, LLC [Member] | Apple Air Holding, LLC [Member] | Apple Air Holding, LLC [Member] | Legal Proceedings and SEC Investigation [Member] | Legal Proceedings and SEC Investigation [Member] | Legal Proceedings and SEC Investigation [Member] | Legal Proceedings and SEC Investigation [Member] | |||||
Series B Convertible Preferred Shares Converted to Common Shares [Member] | Subcontract Agreement between Apple Hospitality and Apple Ten Advisors, Inc. [Member] | Advisory Fees Earned by Apple Hospitality [Member] | Reimbursement Received From Related Parties For Their Proportionate Share of Staffing and Office Related Costs Provided by Apple Hospitality [Member] | Prior to Apple Seven and Apple Eight Mergers [Member] | Prior to Apple Seven and Apple Eight Mergers [Member] | Prior to Apple Seven and Apple Eight Mergers [Member] | Prior to Apple Seven and Apple Eight Mergers [Member] | Prior to Apple Seven and Apple Eight Mergers [Member] | Legal Proceedings and SEC Investigation [Member] | Prior to Apple Seven and Apple Eight Mergers [Member] | Purchase of Apple Seven and Apple Eight Equity Interest [Member] | Upon Completion of Apple Seven and Apple Eight Mergers [Member] | Apple Ten's Minority Interest [Member] | All Apple REIT Entities [Member] | All Apple REIT Entities [Member] | Apple Hospitality [Member] | Apple Hospitality [Member] | |||||||
Apple Seven and Apple Eight Mergers and Related Transactions [Member] | Advisory Fees Incurred [Member] | Advisory Fees Incurred [Member] | Reimbursement to Related Party for Company's Proportionate Share of Staffing and Related Costs Provided by Related Party [Member] | Reimbursement to Related Party for Company's Proportionate Share of Staffing and Related Costs Provided by Related Party [Member] | ||||||||||||||||||||
Related Parties (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Directors on Related Party Board | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible Preferred Stock Converted to Other Securities | $0 | $0 | $117,133,000 | $0 | $117,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value Estimate of Company Common Stock Per Share (in Dollars per share) | ' | ' | ' | ' | $10.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Management Advisory Fee Received From Related Party, Percent | ' | ' | ' | ' | ' | '0.1% to 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related Party Transaction, Amounts of Transaction | ' | ' | ' | ' | ' | ' | -800,000 | -1,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' |
Management Advisory Fee Paid To Related Party, Percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '0.1% to 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Costs and Expenses, Related Party | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | 2,100,000 | 500,000 | 1,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Legal Fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 800,000 | 2,200,000 | 700,000 | 500,000 |
Proceeds from Insurance Settlement, Operating Activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investment, Ownership Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 74.00% | ' | ' | ' | ' | ' | ' |
Other Noncontrolling Interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000 | ' | ' | ' | ' | ' |
Equity Method Investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,700,000 | ' | ' | ' | ' |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 19 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 6 Months Ended | 3 Months Ended | |||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Mar. 01, 2014 | Mar. 01, 2014 | Mar. 01, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Mar. 01, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Aug. 31, 2014 | Mar. 01, 2014 | Mar. 01, 2014 | Jun. 30, 2014 | |
Termination of Advisory Agreements [Member] | Prior to Apple Seven and Apple Eight Mergers [Member] | Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series B Convertible Preferred Stock [Member] | Series B Convertible Preferred Stock [Member] | Series B Convertible Preferred Stock [Member] | Monthly Distributions [Member] | Monthly Distributions [Member] | Monthly Distributions [Member] | Monthly Distributions [Member] | Annual Distribution [Member] | Annual Distribution [Member] | Authorized Common Shares Prior to Apple Seven and Apple Eight Mergers [Member] | Authorized Common Shares per Amended And Restated Articles of Incorporation [Member] | Exercised Appraisal Rights on As-Converted Common Shares [Member] | ||||||
Series B Convertible Preferred Shares Converted to Common Shares [Member] | Annual Distribution [Member] | Prior to Apple Seven and Apple Eight Mergers [Member] | Prior to Apple Seven and Apple Eight Mergers [Member] | Upon Completion of Apple Seven and Apple Eight Mergers [Member] | Apple Seven and Apple Eight Mergers [Member] | |||||||||||||||||
Apple Seven and Apple Eight Mergers and Related Transactions [Member] | ||||||||||||||||||||||
Shareholders' Equity (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Dividends, Per Share, Cash Paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.17 | $0.21 | $0.53 | $0.62 | ' | ' | ' | ' | ' |
Payments of Ordinary Dividends, Common Stock (in Dollars) | ' | ' | $169,862,000 | $113,646,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $62,300,000 | $37,900,000 | $169,900,000 | $113,600,000 | ' | ' | ' | ' | ' |
Annual Distribution rate | ' | ' | ' | ' | ' | ' | $0.83 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.68 | $0.66 | ' | ' | ' |
Preferred Stock, Shares Outstanding (in Shares) | 0 | ' | 0 | ' | 0 | ' | ' | 182,800,000 | 0 | 182,784,131 | ' | 0 | 480,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock, Value, Issued (in Dollars) | 0 | ' | 0 | ' | 0 | ' | ' | ' | 0 | 0 | 48,000 | 0 | 48,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock, Shares Issued (in Shares) | 0 | ' | 0 | ' | 0 | ' | ' | ' | 0 | 182,784,131 | 480,000 | 0 | 480,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares Issued, Price Per Share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible Preferred Stock, Shares Issued upon Conversion (in Shares) | ' | ' | ' | ' | ' | 24.17104 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Conversion of Convertible Securities (in Shares) | ' | ' | ' | ' | ' | 11,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible Preferred Stock Converted to Other Securities (in Dollars) | 0 | 0 | 117,133,000 | 0 | ' | 117,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value Estimate of Company Common Stock Per Share | ' | ' | ' | ' | ' | $10.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Shares Authorized (in Shares) | 800,000,000 | ' | 800,000,000 | ' | 400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000,000 | 800,000,000 | ' |
Payments for Repurchase of Common Stock (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,300,000 |
Stock Repurchased During Period, Shares (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 |
Compensation_Plans_Details
Compensation Plans (Details) (2014 Omnibus Incentive Plan [Member], USD $) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2014 | Sep. 30, 2014 | |
Compensation Plans (Details) [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | 10,000,000 | 10,000,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period (in Shares) | ' | 0 |
Labor and Related Expense | $2,600,000 | $5,700,000 |
Accrued Bonuses, Current | 5,900,000 | 5,900,000 |
Restricted Stock Awards Vested Upon Issuance [Member] | ' | ' |
Compensation Plans (Details) [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | ' | 50.00% |
Restricted Stock Awards Vested at End of 2015 [Member] | ' | ' |
Compensation Plans (Details) [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | ' | 50.00% |
Minimum Potential Payout [Member] | ' | ' |
Compensation Plans (Details) [Line Items] | ' | ' |
Labor and Related Expense | ' | 0 |
Maximum Potential Payout [Member] | ' | ' |
Compensation Plans (Details) [Line Items] | ' | ' |
Labor and Related Expense | ' | $12,000,000 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 9 Months Ended | 1 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Oct. 31, 2014 | Oct. 31, 2014 | Oct. 31, 2014 | |
Share Redemption Program [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |||
Scheduled Redemption January 2015 [Member] | Hampton Inn and Suites Burleson, TX [Member] | ||||
Subsequent Event [Member] | Hotel Acquired Through Foreclosure from Default on Mortgage Note Purchased in 2010 [Member] | ||||
Subsequent Events (Details) [Line Items] | ' | ' | ' | ' | ' |
Payments of Ordinary Dividends, Common Stock | $169,862,000 | $113,646,000 | ' | ' | $21,200,000 |
Common Stock, Dividends, Per Share, Cash Paid | ' | ' | ' | ' | $0.06 |
Number of Units in Real Estate Property | ' | ' | ' | 88 | ' |
Payments to Acquire Mortgage Notes Receivable | ' | ' | ' | $5,400,000 | ' |
Share Redemption, Purchase Price | ' | ' | $9.20 | ' | ' |