Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 1-May-15 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Apple Hospitality REIT, Inc. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | -19 | |
Entity Common Stock, Shares Outstanding | 372,197,631 | |
Amendment Flag | FALSE | |
Entity Central Index Key | 1418121 | |
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 | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Assets | ||
Investment in real estate, net of accumulated depreciation of $327,243 and $296,559, respectively | $3,482,039 | $3,492,821 |
Assets held for sale | 0 | 195,588 |
Cash and cash equivalents | 46,905 | 0 |
Restricted cash-furniture, fixtures and other escrows | 30,694 | 32,526 |
Due from third party managers, net | 39,337 | 22,879 |
Other assets, net | 35,398 | 35,935 |
Total Assets | 3,634,373 | 3,779,749 |
Liabilities | ||
Credit facility | 100,000 | 191,600 |
Mortgage debt | 507,016 | 517,970 |
Accounts payable and other liabilities | 43,384 | 55,555 |
Total Liabilities | 650,400 | 765,125 |
Shareholders' Equity | ||
Preferred stock, authorized 30,000,000 shares; none issued and outstanding | 0 | 0 |
Common stock, no par value, authorized 800,000,000 shares; issued and outstanding 372,643,935 and 373,820,814 shares, respectively | 3,726,501 | 3,737,328 |
Accumulated other comprehensive loss | -785 | -511 |
Distributions greater than net income | -741,743 | -722,193 |
Total Shareholders' Equity | 2,983,973 | 3,014,624 |
Total Liabilities and Shareholders' Equity | $3,634,373 | $3,779,749 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Investment in real estate accumulated depreciation (in Dollars) | $327,243 | $296,559 |
Preferred stock, shares authorized | 30,000,000 | 30,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares authorized | 800,000,000 | 800,000,000 |
Common stock, shares issued | 372,643,935 | 373,820,814 |
Common stock, shares outstanding | 372,643,935 | 373,820,814 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues: | ||
Room | $192,013 | $125,442 |
Other | 18,339 | 11,679 |
Total revenue | 210,352 | 137,121 |
Expenses: | ||
Operating | 54,605 | 35,256 |
Hotel administrative | 17,156 | 10,358 |
Sales and marketing | 17,098 | 11,084 |
Utilities | 8,158 | 5,390 |
Repair and maintenance | 9,169 | 5,612 |
Franchise fees | 8,822 | 5,716 |
Management fees | 7,505 | 4,933 |
Property taxes, insurance and other | 11,561 | 7,126 |
Ground lease | 2,501 | 872 |
General and administrative | 5,547 | 2,519 |
Transaction and potential listing costs | 1,224 | 2,110 |
Series B convertible preferred share expense | 0 | 117,133 |
Depreciation | 30,719 | 19,559 |
Total expenses | 174,065 | 227,668 |
Operating income (loss) | 36,287 | -90,547 |
Interest and other expense, net | -7,737 | -3,524 |
Gain on sale of real estate | 15,629 | 0 |
Income (loss) before income taxes | 44,179 | -94,071 |
Income tax expense | -312 | -391 |
Net income (loss) | 43,867 | -94,462 |
Unrealized gain (loss) on interest rate derivative | -274 | 468 |
Comprehensive income (loss) | $43,593 | ($93,994) |
Basic and diluted net income (loss) per common share (in Dollars per share) | $0.12 | ($0.38) |
Weighted average common shares outstanding - basic and diluted (in Shares) | 372,892 | 248,665 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net income (loss) | $43,867 | ($94,462) |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | ||
Series B convertible preferred share expense | 0 | 117,133 |
Depreciation | 30,719 | 19,559 |
Gain on sale of real estate | -15,629 | 0 |
Other non-cash expenses, net | 2,519 | 223 |
Changes in operating assets and liabilities, net of amounts acquired or assumed with acquisitions: | ||
Increase in due from third party managers, net | -16,458 | -12,875 |
Increase in other assets, net | -2,229 | -1,190 |
Decrease in accounts payable and other liabilities | -6,531 | -5,517 |
Net cash provided by operating activities | 36,258 | 22,871 |
Cash flows from investing activities: | ||
Capital improvements and development costs | -18,806 | -11,790 |
Decrease in capital improvement reserves | 3,836 | 186 |
Net proceeds from sale of real estate | 201,853 | 2,134 |
Net cash provided by (used in) investing activities | 186,883 | -9,470 |
Cash flows from financing activities: | ||
Redemptions of shares | -10,827 | 0 |
Distributions paid to common shareholders | -63,417 | -45,866 |
Payments on extinguished credit facilities | 0 | -129,490 |
Net proceeds from (payments on) existing credit facility | -91,600 | 150,500 |
Proceeds from mortgage debt | 10,000 | 0 |
Payments of mortgage debt | -19,899 | -1,841 |
Financing costs | -493 | -4,806 |
Net cash used in financing activities | -176,236 | -31,503 |
Increase (decrease) in cash and cash equivalents | 46,905 | -18,102 |
Cash and cash equivalents, beginning of period | 0 | 18,102 |
Cash and cash equivalents, end of period | 46,905 | 0 |
Supplemental cash flow information: | ||
Interest paid | 8,063 | 4,280 |
Supplemental disclosure of noncash investing and financing activities: | ||
Merger transactions purchase price, net | 0 | 1,814,613 |
Conversion of Series B convertible preferred shares to common shares | $0 | $117,133 |
Organization_and_Summary_of_Si
Organization and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
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., 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, primarily in the lodging sector, 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 March 31, 2015, the Company owned 173 hotels with an aggregate of 22,003 rooms located in 32 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 2014 Annual Report on Form 10-K. Operating results for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the twelve month period ending December 31, 2015. | |
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 loss, shareholders’ equity or cash flows. | |
Comprehensive Income (Loss) | |
Comprehensive income (loss) includes net income (loss) and other comprehensive income (loss), which is comprised of unrealized gains and losses resulting from 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 the three months ended March 31, 2015 and 2014. As a result, basic and dilutive net income (loss) per common share 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. | |
Recent Accounting Standards | |
In April 2015, the Financial Accounting Standards Board issued Accounting Standards Update No. 2015-03, Simplifying the Presentation of Debt Issuance Costs, which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt. The standard is effective for annual reporting periods beginning after December 15, 2015, and interim periods within those years, with early adoption permitted. The standard will be applied on a retrospective basis. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. | |
Mergers_with_Apple_REIT_Seven_
Mergers with Apple REIT Seven, Inc. and Apple REIT Eight, Inc. | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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 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 wholly owned subsidiaries of the Company effective March 1, 2014 and Apple Seven’s and Apple Eight’s separate corporate existence ceased. With the completion of the A7 and A8 mergers, the Company added 99 continuing hotels located in 27 states (consisting of 48 hotels with an aggregate of 6,209 rooms from Apple Seven and 51 hotels with an aggregate of 5,912 rooms from Apple Eight) to the Company’s real estate portfolio. | |||||||||
In connection with the A7 and A8 mergers, the Company issued approximately 180 million common shares to Apple Seven and Apple Eight shareholders. The Company accounted for the A7 and A8 mergers in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations. The Company was considered the acquirer for financial reporting purposes, which required, 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 a fair value estimate of $10.10 per common share. | |||||||||
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 its advisors 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 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 consolidated statements of operations, to reflect the fair value estimate of the conversion of the Series B convertible preferred shares to common shares at a fair value estimate of $10.10 per common share. | |||||||||
All costs related to the A7 and A8 mergers have been expensed in the period they were incurred and are included in transaction and potential listing costs in the Company’s consolidated statements of operations. In connection with these activities, the Company has incurred approximately $7.2 million in total merger costs (including approximately $1.4 million of costs incurred to defend the ongoing purported class action related to the A7 and A8 mergers discussed in Note 10), of which approximately $0.7 million and $2.0 million, respectively, were incurred during the three months ended March 31, 2015 and 2014. During the first quarter of 2015, the merger costs consisted primarily of costs to defend the class action lawsuit. | |||||||||
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 when the Company entered into a new $345 million unsecured credit facility. | |||||||||
Total revenue and operating income related to the A7 and A8 mergers, from the effective date of the mergers through March 31, 2014, included in the Company’s consolidated statements of operations were approximately $38.4 million and $8.7 million, respectively. | |||||||||
The following unaudited pro forma information for the three months ended March 31, 2015 and 2014 is presented as if the A7 and A8 mergers, effective March 1, 2014, had occurred on January 1, 2014, 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, 2014, 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 March 31, | |||||||||
2015 | 2014 | ||||||||
Total revenue | $ | 210,352 | $ | 197,969 | |||||
Net income | $ | 44,573 | $ | 25,993 | |||||
Net income per share - basic and diluted | $ | 0.12 | $ | 0.07 | |||||
Weighted average common shares outstanding - basic and diluted | 372,892 | 373,821 | |||||||
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 $0.7 million and $2.0 million for the three months ended March 31, 2015 and 2014. The expense related to the conversion of the Series B convertible preferred shares was approximately $117.1 million for the three months ended March 31, 2014. As discussed in Note 4, the Company sold 18 hotels on February 26, 2015, of which 12 of the hotels were acquired with the A7 and A8 mergers, and therefore the pro forma results of the Company for the three months ended March 31, 2015 only include operations of the 18 hotels through the time of the sale on February 26, 2015. | |||||||||
Investment_in_Real_Estate
Investment in Real Estate | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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): | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Land | $ | 520,406 | $ | 520,406 | |||||
Building and Improvements | 3,024,406 | 3,010,314 | |||||||
Furniture, Fixtures and Equipment | 256,953 | 251,170 | |||||||
Franchise Fees | 7,517 | 7,490 | |||||||
3,809,282 | 3,789,380 | ||||||||
Less Accumulated Depreciation | (327,243 | ) | (296,559 | ) | |||||
Investment in Real Estate, net | $ | 3,482,039 | $ | 3,492,821 | |||||
As of March 31, 2015, the Company owned 173 hotels with an aggregate of 22,003 rooms located in 32 states. As further discussed in Note 4, during the first quarter of 2015 the Company decided not to sell the TownePlace Suites in Columbus, Georgia, which was classified as held for sale as of December 31, 2014, and reclassified the property as held and used as of March 31, 2015. | |||||||||
The Company determined there was no impairment of its real estate assets for the three months ended March 31, 2015 or 2014. | |||||||||
Dispositions
Dispositions | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 4. Dispositions | ||||||||||
In December 2014, the Company entered into a purchase and sale agreement for 19 properties for $213 million. These properties were identified for potential sale during the third quarter of 2014. The 19 properties were classified as held for sale at historical cost in the Company’s consolidated balance sheet as of December 31, 2014. On February 26, 2015, the Company completed the sale of 18 of the 19 hotels for a total sales price of $206.4 million, resulting in a gain of approximately $15.6 million, which is included in the Company’s consolidated statement of operations in the first quarter of 2015. The following table lists the 18 hotels sold: | |||||||||||
City | State | Brand | Date Acquired | Rooms | |||||||
Huntsville | AL | TownePlace Suites | 3/1/14 | 86 | |||||||
Troy | AL | Courtyard | 6/18/09 | 90 | |||||||
Troy | AL | Hampton Inn | 3/1/14 | 82 | |||||||
Rogers | AR | Fairfield Inn & Suites | 3/1/14 | 99 | |||||||
Pueblo | CO | Hampton Inn & Suites | 10/31/08 | 81 | |||||||
Port Wentworth | GA | Hampton Inn | 3/1/14 | 106 | |||||||
Bowling Green | KY | Hampton Inn | 3/1/14 | 130 | |||||||
Alexandria | LA | Courtyard | 9/15/10 | 96 | |||||||
West Monroe | LA | Hilton Garden Inn | 7/30/10 | 134 | |||||||
Concord | NC | Hampton Inn | 3/1/14 | 101 | |||||||
Dunn | NC | Hampton Inn | 3/1/14 | 120 | |||||||
Jacksonville | NC | TownePlace Suites | 2/16/10 | 86 | |||||||
Matthews | NC | Hampton Inn | 3/1/14 | 91 | |||||||
Cincinnati | OH | Homewood Suites | 3/1/14 | 76 | |||||||
Tulsa | OK | Hampton Inn & Suites | 3/1/14 | 102 | |||||||
Jackson | TN | Courtyard | 12/16/08 | 94 | |||||||
Brownsville | TX | Courtyard | 3/1/14 | 90 | |||||||
San Antonio | TX | TownePlace Suites | 3/1/14 | 123 | |||||||
Total | 1,787 | ||||||||||
The 18 hotels had a total carrying value of approximately $188.3 million at the time of the sale. The Company used a portion of the proceeds from the sale to repay the outstanding balance under its revolving credit facility, with the remaining portion to be used to acquire other hotel properties and fund hotel renovations. The Company’s consolidated statements of operations include operating income of approximately $2.0 million for both the three months ended March 31, 2015 and 2014 relating to results of operations for the 18 hotels for the respective periods of ownership. Twelve of the 18 hotels were originally acquired by the Company in the A7 and A8 mergers, effective March 1, 2014 (see table above for a list of properties), and therefore the historical operating results of the Company only include operations from March 1, 2014 through the date of sale for these hotels. The sale of these properties does not represent a strategic shift that has, or will have, a major effect on the Company’s operations and financial results, and therefore the operating results for the period of ownership of these properties are included in income from continuing operations for the three months ended March 31, 2015 and 2014. | |||||||||||
As contemplated in the purchase and sale agreement, the buyer exercised its right to exclude the remaining hotel (the TownePlace Suites in Columbus, Georgia with a purchase price of $6.6 million) from the transaction. At this time, the Company does not have any immediate plans to sell this hotel. Due to this change in plans, this hotel was reclassified as held and used during the first quarter of 2015 and is included in investment in real estate, net in the Company’s consolidated balance sheet as of March 31, 2015. There are no assets classified as held for sale as of March 31, 2015. | |||||||||||
Prior to the sale, on February 13, 2015, the Company extinguished a mortgage totaling approximately $4.6 million secured by the Hampton Inn located in Concord, North Carolina, and incurred expenses, including defeasance costs during the first quarter of 2015, which were recorded as a reduction to the gain on sale of real estate. | |||||||||||
Credit_Facilities_and_Mortgage
Credit Facilities and Mortgage Debt | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||
Debt Disclosure [Text Block] | 5. Credit Facility and Mortgage Debt | ||||||||||||||||||||||||
Credit Facility | |||||||||||||||||||||||||
On March 3, 2014, the Company entered into a $345 million unsecured credit facility (comprised of a $245 million revolving credit facility and a $100 million term loan). The $345 million credit facility is available for working capital, hotel acquisitions, hotel renovations and development and other general corporate purposes, including the funding of share repurchases and payment of 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 6 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 March 31, 2015, the credit facility had an outstanding principal balance of $100 million, which consisted only of the $100 million term loan with an effective annual fixed interest rate of approximately 3.13%. As of December 31, 2014, the credit facility had an outstanding principal balance of $191.6 million, including the $100 million term loan with an effective annual fixed interest rate of approximately 3.13% and $91.6 million outstanding on the $245 million revolving credit facility with an annual variable interest rate of approximately 1.77%. | |||||||||||||||||||||||||
The $345 million credit facility contains customary affirmative covenants, negative covenants and events of defaults. It also contains covenants restricting the level of certain investments and quarterly financial covenants which include, among others, a minimum tangible net worth, maximum debt limits, minimum interest and fixed charge coverage ratios and maximum dividend payout ratio. The Company was in compliance with the applicable covenants at March 31, 2015. | |||||||||||||||||||||||||
Mortgage Debt | |||||||||||||||||||||||||
As of March 31, 2015, the Company had approximately $503.4 million in outstanding property level debt secured by 45 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 loans generally provide for monthly payments of principal and interest on an amortized basis. The loans are generally subject to defeasance or prepayment penalties if prepaid. The following table sets forth the hotel properties securing each loan, the interest rate, loan assumption or origination date, maturity date, the principal amount assumed or originated, and the outstanding balance prior to any fair value adjustments as of March 31, 2015 and December 31, 2014 for each of the Company’s debt obligations. All dollar amounts are in thousands. | |||||||||||||||||||||||||
Location | Brand | Interest Rate (1) | Loan Assumption or | Maturity Date | Principal Assumed or Originated | Outstanding balance as of | Outstanding balance as of | ||||||||||||||||||
Origination Date | 31-Mar-15 | 31-Dec-14 | |||||||||||||||||||||||
Overland Park, KS | Residence Inn | 5.74 | % | 3/1/14 | -2 | $ | 6,018 | $ | 0 | $ | 5,833 | ||||||||||||||
Concord, NC | Hampton Inn | 6.1 | % | 3/1/14 | -3 | 4,718 | 0 | 4,644 | |||||||||||||||||
Westford, MA | Residence Inn | 5.3 | % | -4 | 3/1/14 | -5 | 6,530 | 0 | 6,397 | ||||||||||||||||
Dallas, TX | Hilton | 6.63 | % | 5/17/11 | -6 | 20,988 | 18,744 | 18,913 | |||||||||||||||||
Rogers, AR | Hampton Inn | 5.2 | % | 8/31/10 | 9/1/15 | 8,337 | 7,543 | 7,593 | |||||||||||||||||
St. Louis, MO | Hampton Inn | 5.3 | % | 8/31/10 | 9/1/15 | 13,915 | 12,610 | 12,692 | |||||||||||||||||
Kansas City, MO | Hampton Inn | 5.45 | % | 8/31/10 | 10/1/15 | 6,517 | 5,924 | 5,961 | |||||||||||||||||
Allen, TX | Hilton Garden Inn | 5.37 | % | 10/31/08 | 10/11/15 | 10,787 | 9,498 | 9,559 | |||||||||||||||||
Kansas City, MO | Residence Inn | 5.74 | % | 3/1/14 | 11/1/15 | 10,602 | 10,362 | 10,420 | |||||||||||||||||
Fayetteville, NC | Residence Inn | 5.14 | % | 3/1/14 | 12/1/15 | 6,545 | 6,368 | 6,410 | |||||||||||||||||
Austin, TX | Homewood Suites | 5.99 | % | 4/14/09 | 3/1/16 | 7,556 | 6,428 | 6,486 | |||||||||||||||||
Austin, TX | Hampton Inn | 5.95 | % | 4/14/09 | 3/1/16 | 7,553 | 6,420 | 6,478 | |||||||||||||||||
Tupelo, MS | Hampton Inn | 5.9 | % | 3/1/14 | 3/1/16 | 3,124 | 2,932 | 2,977 | |||||||||||||||||
Houston, TX | Residence Inn | 5.71 | % | 3/1/14 | 3/1/16 | 9,930 | 9,687 | 9,745 | |||||||||||||||||
Hilton Head, SC | Hilton Garden Inn | 6.29 | % | 3/1/14 | 4/11/16 | 5,557 | 5,364 | 5,410 | |||||||||||||||||
Round Rock, TX | Hampton Inn | 5.95 | % | 3/6/09 | 5/1/16 | 4,175 | 3,551 | 3,583 | |||||||||||||||||
Highlands Ranch, CO | Residence Inn | 5.94 | % | 3/1/14 | 6/1/16 | 10,494 | 10,274 | 10,327 | |||||||||||||||||
Texarkana, TX | Hampton Inn & Suites | 6.9 | % | 1/31/11 | 7/8/16 | 4,954 | 4,643 | 4,665 | |||||||||||||||||
Bristol, VA | Courtyard | 6.59 | % | 11/7/08 | 8/1/16 | 9,767 | 8,877 | 8,922 | |||||||||||||||||
Virginia Beach, VA | Courtyard | 6.02 | % | 3/1/14 | 11/11/16 | 13,931 | 13,620 | 13,695 | |||||||||||||||||
Virginia Beach, VA | Courtyard | 6.02 | % | 3/1/14 | 11/11/16 | 16,813 | 16,438 | 16,529 | |||||||||||||||||
Charlottesville, VA | Courtyard | 6.02 | % | 3/1/14 | 11/11/16 | 14,892 | 14,559 | 14,640 | |||||||||||||||||
Carolina Beach, NC | Courtyard | 6.02 | % | 3/1/14 | 11/11/16 | 12,009 | 11,741 | 11,806 | |||||||||||||||||
Winston-Salem, NC | Courtyard | 5.94 | % | 3/1/14 | 12/8/16 | 7,458 | 7,318 | 7,352 | |||||||||||||||||
Lewisville, TX (7) | Hilton Garden Inn | 0 | % | 10/16/08 | 12/31/16 | 3,750 | 2,000 | 2,000 | |||||||||||||||||
Oceanside, CA | Residence Inn | 4.24 | % | -4 | 3/1/14 | 1/13/17 | 15,662 | 15,324 | 15,402 | ||||||||||||||||
Burbank, CA | Residence Inn | 4.24 | % | -4 | 3/1/14 | 1/13/17 | 23,493 | 22,986 | 23,103 | ||||||||||||||||
Savannah, GA | Hilton Garden Inn | 5.87 | % | 3/1/14 | 2/1/17 | 4,977 | 4,809 | 4,849 | |||||||||||||||||
Greenville, SC | Residence Inn | 6.03 | % | 3/1/14 | 2/8/17 | 6,012 | 5,893 | 5,922 | |||||||||||||||||
Birmingham, AL | Homewood Suites | 6.03 | % | 3/1/14 | 2/8/17 | 10,908 | 10,693 | 10,745 | |||||||||||||||||
Jacksonville, FL | Homewood Suites | 6.03 | % | 3/1/14 | 2/8/17 | 15,856 | 15,543 | 15,619 | |||||||||||||||||
Irving, TX | Homewood Suites | 5.83 | % | 12/29/10 | 4/11/17 | 6,052 | 5,393 | 5,437 | |||||||||||||||||
Duncanville, TX | Hilton Garden Inn | 5.88 | % | 10/21/08 | 5/11/17 | 13,966 | 12,595 | 12,661 | |||||||||||||||||
Grapevine, TX | Hilton Garden Inn | 4.89 | % | 8/29/12 | 9/1/22 | 11,810 | 11,187 | 11,254 | |||||||||||||||||
Collegeville/Philadelphia, PA | Courtyard | 4.89 | % | 8/30/12 | 9/1/22 | 12,650 | 11,982 | 12,055 | |||||||||||||||||
Hattiesburg, MS | Courtyard | 5 | % | 3/1/14 | 9/1/22 | 5,732 | 5,594 | 5,627 | |||||||||||||||||
Rancho Bernardo, CA | Courtyard | 5 | % | 3/1/14 | 9/1/22 | 15,060 | 14,695 | 14,782 | |||||||||||||||||
Kirkland, WA | Courtyard | 5 | % | 3/1/14 | 9/1/22 | 12,145 | 11,851 | 11,921 | |||||||||||||||||
Seattle, WA | Residence Inn | 4.96 | % | 3/1/14 | 9/1/22 | 28,269 | 27,579 | 27,744 | |||||||||||||||||
Anchorage, AK | Embassy Suites | 4.97 | % | 9/13/12 | 10/1/22 | 23,230 | 22,062 | 22,193 | |||||||||||||||||
Somerset, NJ | Courtyard | 4.73 | % | 3/1/14 | 10/6/22 | 8,750 | 8,531 | 8,584 | |||||||||||||||||
Tukwila, WA | Homewood Suites | 4.73 | % | 3/1/14 | 10/6/22 | 9,431 | 9,195 | 9,251 | |||||||||||||||||
Prattville, AL | Courtyard | 4.12 | % | 3/1/14 | 2/6/23 | 6,596 | 6,420 | 6,462 | |||||||||||||||||
Huntsville, AL | Homewood Suites | 4.12 | % | 3/1/14 | 2/6/23 | 8,306 | 8,085 | 8,137 | |||||||||||||||||
San Diego, CA | Residence Inn | 3.97 | % | 3/1/14 | 3/6/23 | 18,600 | 18,096 | 18,216 | |||||||||||||||||
Miami, FL | Homewood Suites | 4.02 | % | 3/1/14 | 4/1/23 | 16,677 | 16,231 | 16,337 | |||||||||||||||||
New Orleans, LA | Homewood Suites | 4.36 | % | 7/17/14 | 8/11/24 | 27,000 | 26,654 | 26,806 | |||||||||||||||||
Westford, MA | Residence Inn | 4.28 | % | 3/18/15 | 4/11/25 | -5 | 10,000 | 10,000 | 0 | ||||||||||||||||
Malvern/Philadelphia, PA | Courtyard | 6.5 | % | 11/30/10 | 10/1/32 | -8 | 7,894 | 7,078 | 7,132 | ||||||||||||||||
$ | 545,996 | $ | 503,377 | $ | 513,276 | ||||||||||||||||||||
Unamortized fair value adjustment of assumed debt | 3,639 | 4,694 | |||||||||||||||||||||||
Total | $ | 507,016 | $ | 517,970 | |||||||||||||||||||||
-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 was repaid in full on January 2, 2015. | ||||||||||||||||||||||||
-3 | Property securing loan was sold on February 26, 2015 and was classified as held for sale as of December 31, 2014. Debt was extinguished prior to the sale on February 13, 2015. | ||||||||||||||||||||||||
-4 | The annual fixed interest rate gives effect to an interest rate swap agreement assumed by the Company with the mortgage debt. | ||||||||||||||||||||||||
-5 | Loan was refinanced on March 18, 2015, and the existing related swap was terminated. | ||||||||||||||||||||||||
-6 | Loan was repaid in full on April 6, 2015. | ||||||||||||||||||||||||
-7 | Unsecured loan. | ||||||||||||||||||||||||
-8 | 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. | ||||||||||||||||||||||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||
Fair Value Disclosures [Text Block] | 6. 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 March 31, 2015, the carrying value and estimated fair value of the Company’s debt was approximately $607.0 million and $618.5 million. As of December 31, 2014, the carrying value and estimated fair value of the Company’s debt was approximately $709.6 million and $718.9 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 and 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 fixed 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 was included in accounts payable and other liabilities as part of the purchase price allocation. Throughout the terms of these interest rate swaps, the Company pays a fixed rate of interest and receives a floating rate of interest equal to the one month LIBOR. As of December 31, 2014, the fair value of these swaps was approximately $0.3 million (liability). During the first quarter of 2015, one of these swaps expired. Additionally, during the first quarter of 2015, one swap was terminated in conjunction with the extinguishment of the related mortgage loan, and the Company incurred a termination fee of approximately $0.05 million, which was equal to the swap’s fair value at the date of termination and was paid in satisfaction of the existing liability. As of March 31, 2015, the fair value of the remaining swap was approximately $0.3 million (liability). These interest rate swaps assumed were 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 and other expense, net in the Company’s consolidated statements of operations. For the three months ended March 31, 2015 and 2014, the change in fair value (excluding the $0.05 million termination fee) resulted in a net increase of approximately $0.1 million and a net decrease of approximately $0.2 million, respectively, to interest and other expense, net. | ||||||||||||||
In March 2014, the Company entered into an interest rate swap agreement with a commercial bank 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 March 31, 2015 and December 31, 2014, the fair value of this swap totaled approximately $1.6 million and $0.5 million (liability), respectively. At inception, the interest rate swap was designated by the Company as an effective cash flow hedge for accounting purposes. The Company assesses, both at inception and on an ongoing basis, the effectiveness of its qualifying cash flow hedge. From inception of the swap through March 2, 2015, the swap was a fully effective hedge for accounting purposes, and therefore the changes in the fair value through this date were recorded in accumulated other comprehensive loss, a component of shareholder’s equity in the Company’s consolidated balance sheets, which totaled $0.8 million and $0.5 million as of March 31, 2015 and December 31, 2014, respectively. For the three months ended March 31, 2015 and 2014, the Company recorded an unrealized loss of approximately $0.3 million and an unrealized gain of approximately $0.5 million, respectively, in other comprehensive income (loss) relating to this swap. In 2015, the Company announced its intent to pursue a listing of its common shares on a national securities exchange and intent to enter into a new credit facility to fund a possible tender offer and share buyback program. As a result of this decision, it was determined that the cash flows being hedged were no longer probable of occurring through the maturity date of the swap. Therefore the Company discontinued hedge accounting, and the change in fair value resulting in a loss of $0.8 million for the remainder of the quarter was recorded to interest and other expense, net in the Company’s consolidated statement of operations. The Company will reclassify the amount included in accumulated other comprehensive loss as of March 31, 2015 to interest and other expense, net if it becomes probable that the cash flows relating to interest payments on the $100 million term loan will change. | ||||||||||||||
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 March 31, 2015 and December 31, 2014 (in thousands): | ||||||||||||||
Fair value | ||||||||||||||
Related debt | Notional amount at March 31, 2015 | Maturity date | 31-Mar-15 | 31-Dec-14 | ||||||||||
Term loan facility (1) | $ | 100,000 | 3/1/19 | $ | (1,553 | ) | $ | (511 | ) | |||||
Westford Residence Inn (2)(3) | 0 | 10/1/15 | 0 | (74 | ) | |||||||||
Oceanside Residence Inn/Burbank Residence Inn (2)(4) | 0 | 1/13/15 | 0 | (11 | ) | |||||||||
Oceanside Residence Inn/Burbank Residence Inn (2)(5) | 38,310 | 1/13/17 | (296 | ) | (183 | ) | ||||||||
(1) | Designated as a cash flow hedge through March 2, 2015 and was fully effective during this period. From March 3, 2015 and thereafter, due to a potential change in the underlying hedged debt instrument as discussed above, the swap is no longer designated as a cash flow hedge. | |||||||||||||
(2) | Not designated as a cash flow hedge. | |||||||||||||
(3) | On March 18, 2015, the Company refinanced the related mortgage note and terminated this swap agreement. As part of this termination, the Company paid a fee of approximately $0.05 million to satisfy the outstanding liability at the time of termination. | |||||||||||||
-4 | Swap matured during the first quarter of 2015. | |||||||||||||
-5 | Effective date of the forward interest rate swap agreement was January 13, 2015, the same date the previous swap agreement matured. | |||||||||||||
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 | 3 Months Ended |
Mar. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 7. Related Parties |
The Company has, and is expected to continue to engage in, transactions with related parties. These transactions cannot be construed to be at arm’s length and the results of the Company’s operations may 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 discussed in this section) and are required to approve any significant modifications to the existing relationships, as well as any new significant related party transactions. 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. There have been no changes to the contracts and relationships discussed in the Company’s 2014 Annual Report on Form 10-K. Below is a summary of the related party relationships in effect as of March 31, 2015. | |
Prior to the A7 and A8 mergers, Glade M. Knight, Executive Chairman of the Company and formerly Chairman and Chief Executive Officer of the Company, was Chairman and Chief Executive Officer of Apple Seven and Apple Eight and is currently Chairman and Chief Executive Officer of Apple REIT Ten, Inc. (“Apple Ten”). The former advisors of Apple Seven, Apple Eight and the Company, and the advisors of Apple Ten, are wholly owned by Mr. Knight. Mr. Knight is also a partner and Chief Executive Officer of Energy 11 GP, LLC, which is the general partner of Energy 11, L.P. Effective January 1, 2015, Justin G. Knight, the Company’s President and Chief Executive Officer, and Apple Ten’s President, was appointed to the Company’s Board of Directors. | |
Subcontract Agreement with Apple Ten Advisors, Inc. | |
In connection with the Merger Agreement, on August 7, 2013, the Company entered into a subcontract agreement, as amended with Apple Ten Advisors, Inc. (“A10A”) to subcontract A10A’s 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 provides to Apple Ten advisory services and receives an annual fee ranging from 0.1% to 0.25% (based on Apple Ten’s operating results) of total equity proceeds received by Apple Ten, and is reimbursed by Apple Ten for the use of the Company’s employees and corporate office and other costs associated with the advisory agreement, as described below. Total advisory fees earned by the Company from Apple Ten for the three months ended March 31, 2015 and 2014 totaled approximately $0.4 million and $0.1 million, and are recorded as a reduction to general and administrative expenses in the Company’s consolidated statements of operations. | |
Support Services to Apple Ten, A10A and Apple Suites Realty Group, Inc. | |
From and after the A7 and A8 mergers, the Company provides support services to Apple Ten, A10A and Apple Suites Realty Group, Inc. (“ASRG”), which have agreed to reimburse the Company for its costs in providing these services. Total reimbursed costs received by the Company from these entities for the three months ended March 31, 2015 and 2014 totaled approximately $0.7 million and $0.3 million, respectively, and are recorded as a reduction to general and administrative expenses in the Company’s consolidated statements of operations. Under this cost sharing structure, amounts reimbursed to the Company include both compensation for personnel and office related costs (including office rent, utilities, office supplies, etc.) used by each company. The amounts reimbursed to the Company are based on a good faith estimate of the proportionate amount of time incurred by the Company’s employees on behalf of Apple Ten, A10A and ASRG. As part of the cost sharing arrangements, certain day-to-day transactions may result in amounts due to or from the Company, Apple Ten, A10A and ASRG. To efficiently manage cash disbursements, the Company, Apple Ten, A10A or ASRG may make payments for any or all of the related companies. Under the cash management process, each of the companies may advance or defer up to $1 million at any time. Each month, any outstanding amounts are settled among the affected companies. This process allows each company to minimize its cash on hand, which, in turn, reduces the cost of each company’s credit facility. The amounts outstanding at any point in time are not significant to any of the companies. | |
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. Apple Air is jointly owned by the Company (74%) and Apple Ten (26%), with Apple Ten’s ownership interest accounted for as a minority interest, which as of both March 31, 2015 and December 31, 2014, totaled approximately $1.0 million and is included in accounts payable and other liabilities in the Company’s consolidated balance sheets. The aircraft is also leased to affiliates of the Company based on third party rates, which was not significant during the reporting periods. | |
Shareholders_Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 8. Shareholders’ Equity |
Distributions | |
For the three months ended March 31, 2015 and 2014, the Company made distributions of $0.17 and $0.1934 per common share for a total of $63.4 million and $45.9 million, respectively. The Company’s current annual distribution rate, payable monthly is $0.68 per common share. As contemplated by the A7 and A8 mergers, the Board of Directors reduced the annual distribution rate 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 Board of Directors increased the annual distribution rate from $0.66 per common share to $0.68 per common share. | |
Share Redemption Program | |
In October 2014, the Board of Directors approved reinstating the Company’s share redemption program on a limited basis. The Board of Directors initially approved limiting redemptions of common shares only in the event of death or eligible disability of a shareholder, and in February 2015, the Board of Directors approved limiting redemptions to death of a shareholder only. The number of common shares that may be redeemed in any given year is also 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. During the three months ended March 31, 2015, the Company redeemed approximately 1.2 million common shares at a price of $9.20 per common share, or a total of approximately $10.8 million. All eligible redemption requests were fulfilled. No common shares were redeemed under the program during 2014. | |
Potential Reverse Share Split | |
In February 2015, the Company filed articles of amendment to the amended articles of incorporation of the Company that provide for a 50% reverse share split of the common shares of the Company immediately prior to, but subject to the effectiveness of, the initial listing of the Company’s common shares on a national securities exchange. The articles of amendment provide that, in the event a listing occurs, each common share of the Company will be reclassified into one-half (1/2) of such common share. Such reclassified common shares would have the same respective voting rights, preferences and relative, participating, optional or other rights, and qualifications, limitations or restrictions set forth in the amended articles of incorporation immediately prior to the effectiveness of the reclassification. These articles of amendment were previously approved by the Company’s shareholders at a special meeting of shareholders in February 2014 in connection with the approval of the A7 and A8 mergers. The potential reverse share split is not reflected in the Company’s common shares as of March 31, 2015. | |
Compensation_Plans
Compensation Plans | 3 Months Ended |
Mar. 31, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | 9. Compensation Plans |
In March 2015, the Compensation Committee of the Board of Directors approved an incentive plan (“2015 Incentive Plan”), effective January 1, 2015, for participants and established incentive goals for 2015. Under the 2015 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 2015 performance measures. The range of payouts under the 2015 Incentive Plan is $0 - $13 million. Based on performance through March 31, 2015, the Company has accrued approximately $2.2 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 March 31, 2015 and general and administrative expense in the Company’s consolidated statements of operations for the three months ended March 31, 2015. A portion of any awards under the 2015 Incentive Plan, if any, may be issued in restricted stock under the 2014 Omnibus Incentive Plan, 50% of which would vest upon issuance and 50% would vest at the end of 2016. During 2014, a comparable incentive plan was approved by the Board of Directors in May 2014. | |
Legal_Proceedings
Legal Proceedings | 3 Months Ended |
Mar. 31, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Legal Matters and Contingencies [Text Block] | 10. Legal Proceedings |
In re Apple REITs Litigation | |
As previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, the Company, ASRG, Apple Eight Advisors, Inc., Apple Nine Advisors, Inc., A10A, Apple Fund Management, LLC, Apple REIT Six, Inc., Apple Seven, Apple Eight and Apple Ten, their directors and certain officers, and David Lerner Associates, Inc. and David Lerner were parties to a consolidated matter called In re Apple REITs Litigation, Civil Action No. 1:11-cv-02919-KAM-JO. On March 25, 2015, United States District Judge Kiyo A. Matsumoto entered a Memorandum and Order dismissing all remaining claims in this matter and judgment was entered in favor of the defendants, including the Company. The time for appeal on this matter has passed. | |
DCG&T et al. v. Knight, et al. | |
As previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, 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.). | |
On December 18, 2014, the United States District Court for the Eastern District of Virginia issued an order granting the Defendants’ motion to dismiss in part and denying it in part. Specifically, the court dismissed each of Plaintiffs’ class action claims, but held that Plaintiffs could bring derivative claims for breach of fiduciary duties of care and loyalty (Count II) and for conflicts of interest (Count IV). On April 1, 2015, the Court entered an agreed stipulation of dismissal, dismissing with prejudice Count IV. | |
Discovery in the case is proceeding. A bench trial is scheduled to begin July 13, 2015. | |
The Company believes that Plaintiffs’ 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. | |
Moses, et al. v. Apple Hospitality REIT, Inc., et al. | |
As previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, 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 between July 17, 2007 and February 12, 2014 (Susan Moses, et al. v. Apple Hospitality REIT, Inc., et al., 14-CV-3131 (DLI)(SMG)). | |
On March 9, 2015, the Court entered a Memorandum and Order dismissing all claims. On April 6, 2015, Plaintiff filed a Second Amended Class Action Complaint asserting a breach of contract claim. Defendants moved to dismiss the Second Amended Complaint on April 29, 2015. | |
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. | |
Wenzel v. Knight et al. | |
As previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, 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., Apple Fund Management, LLC 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 between July 17, 2007 and June 30, 2013 (Wenzel v. Knight, et al., Case No. 3:14-cv-00432, E.D. Va.). On February 4, 2015, Plaintiff filed an amended complaint against the Company, Apple Eight Advisors, Inc., Apple Fund Management, LLC, and several officers and directors of the Company alleging breach of contract, tortious interference with contract, fraud, negligence and violation of the Virginia Securities Act. Defendants’ Motion to Dismiss all claims is fully briefed and the case is stayed pending the Court’s ruling on the Motion. | |
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 | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||
Subsequent Events [Text Block] | 11. Subsequent Events | ||||||||||||||||
In April 2015, the Company declared and paid approximately $21.1 million, or $0.056667 per outstanding common share, in distributions to its common shareholders. | |||||||||||||||||
In April 2015, under the Company’s limited share redemption program, the Company redeemed approximately 0.4 million common shares in the amount of $4.1 million. Redemptions were limited to death of a shareholder and were made at a price of $9.20 per common share. All eligible redemption requests were fulfilled. Following this redemption, the Board of Directors approved the termination of the limited share redemption program. No additional redemptions will be made under this program. | |||||||||||||||||
In April 2015, the Board of Directors approved the termination of the Company’s suspended Dividend Reinvestment Plan, which had been suspended since June 2013. | |||||||||||||||||
In April 2015, the Company announced its intention to list the Company’s common shares on the New York Stock Exchange on or about May 18, 2015. Should a listing occur, the Board of Directors has authorized a reduction of the annual distribution rate from $0.68 per common share to $0.60 per common share (on a pre-reverse split basis) effective with the June 2015 distribution. The Company intends to continue to pay distributions on a monthly basis. | |||||||||||||||||
Subsequent to March 31, 2015, the Company entered into a series of contracts for the potential purchase of five hotels. Although the Company is working towards acquiring these hotels, there are many conditions to closing that have not yet been satisfied and there can be no assurance that a closing on these hotels will occur under the outstanding purchase contracts. The following table summarizes the hotel and contract information. All dollar amounts are in thousands. | |||||||||||||||||
Date of Purchase Contract | Rooms | Gross Purchase Price | Initial Refundable Deposit | ||||||||||||||
Location | Brand | ||||||||||||||||
Hartford, CT (a) | Homewood Suites | 4/23/15 | 116 | $ | 18,500 | $ | 500 | ||||||||||
Burbank, CA (b) | SpringHill Suites | 4/23/15 | 170 | 60,000 | 100 | ||||||||||||
Atlanta, GA (b) | Home2 Suites | 5/5/15 | 128 | 24,600 | 100 | ||||||||||||
Cypress, CA | Hampton Inn | 5/5/15 | 110 | 19,800 | 500 | ||||||||||||
Fort Lauderdale, FL | Hampton Inn | 5/5/15 | 156 | 23,000 | 500 | ||||||||||||
680 | $ | 145,900 | $ | 1,700 | |||||||||||||
(a) | The purchase contract for this hotel requires the Company to assume approximately $13.4 million in mortgage debt. This loan provides for monthly payments of principal and interest on an amortized basis. | ||||||||||||||||
(b) | These hotels are currently under development. The table shows the expected number of rooms upon hotel completion and the expected franchise. | ||||||||||||||||
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Organization |
Apple Hospitality REIT, 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, primarily in the lodging sector, 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 March 31, 2015, the Company owned 173 hotels with an aggregate of 22,003 rooms located in 32 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 2014 Annual Report on Form 10-K. Operating results for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the twelve month period ending December 31, 2015. | |
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 loss, shareholders’ equity or cash flows. | |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income (Loss) |
Comprehensive income (loss) includes net income (loss) and other comprehensive income (loss), which is comprised of unrealized gains and losses resulting from 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 the three months ended March 31, 2015 and 2014. As a result, basic and dilutive net income (loss) per common share 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. | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Standards |
In April 2015, the Financial Accounting Standards Board issued Accounting Standards Update No. 2015-03, Simplifying the Presentation of Debt Issuance Costs, which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt. The standard is effective for annual reporting periods beginning after December 15, 2015, and interim periods within those years, with early adoption permitted. The standard will be applied on a retrospective basis. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. |
Mergers_with_Apple_REIT_Seven_1
Mergers with Apple REIT Seven, Inc. and Apple REIT Eight, Inc. (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure Text Block Supplement [Abstract] | |||||||||
Business Acquisition, Pro Forma Information [Table Text Block] | The following unaudited pro forma information for the three months ended March 31, 2015 and 2014 is presented as if the A7 and A8 mergers, effective March 1, 2014, had occurred on January 1, 2014, 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, 2014, 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 March 31, | |||||||||
2015 | 2014 | ||||||||
Total revenue | $ | 210,352 | $ | 197,969 | |||||
Net income | $ | 44,573 | $ | 25,993 | |||||
Net income per share - basic and diluted | $ | 0.12 | $ | 0.07 | |||||
Weighted average common shares outstanding - basic and diluted | 372,892 | 373,821 |
Investment_in_Real_Estate_Tabl
Investment in Real Estate (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Real Estate [Abstract] | |||||||||
Property, Plant and Equipment [Table Text Block] | The Company’s total investment in real estate consisted of the following (in thousands): | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Land | $ | 520,406 | $ | 520,406 | |||||
Building and Improvements | 3,024,406 | 3,010,314 | |||||||
Furniture, Fixtures and Equipment | 256,953 | 251,170 | |||||||
Franchise Fees | 7,517 | 7,490 | |||||||
3,809,282 | 3,789,380 | ||||||||
Less Accumulated Depreciation | (327,243 | ) | (296,559 | ) | |||||
Investment in Real Estate, net | $ | 3,482,039 | $ | 3,492,821 |
Dispositions_Tables
Dispositions (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||
Disposal Group, Schedule of Property Disposed During Period [Table Text Block] | In December 2014, the Company entered into a purchase and sale agreement for 19 properties for $213 million. These properties were identified for potential sale during the third quarter of 2014. The 19 properties were classified as held for sale at historical cost in the Company’s consolidated balance sheet as of December 31, 2014. On February 26, 2015, the Company completed the sale of 18 of the 19 hotels for a total sales price of $206.4 million, resulting in a gain of approximately $15.6 million, which is included in the Company’s consolidated statement of operations in the first quarter of 2015. The following table lists the 18 hotels sold: | ||||||||||
City | State | Brand | Date Acquired | Rooms | |||||||
Huntsville | AL | TownePlace Suites | 3/1/14 | 86 | |||||||
Troy | AL | Courtyard | 6/18/09 | 90 | |||||||
Troy | AL | Hampton Inn | 3/1/14 | 82 | |||||||
Rogers | AR | Fairfield Inn & Suites | 3/1/14 | 99 | |||||||
Pueblo | CO | Hampton Inn & Suites | 10/31/08 | 81 | |||||||
Port Wentworth | GA | Hampton Inn | 3/1/14 | 106 | |||||||
Bowling Green | KY | Hampton Inn | 3/1/14 | 130 | |||||||
Alexandria | LA | Courtyard | 9/15/10 | 96 | |||||||
West Monroe | LA | Hilton Garden Inn | 7/30/10 | 134 | |||||||
Concord | NC | Hampton Inn | 3/1/14 | 101 | |||||||
Dunn | NC | Hampton Inn | 3/1/14 | 120 | |||||||
Jacksonville | NC | TownePlace Suites | 2/16/10 | 86 | |||||||
Matthews | NC | Hampton Inn | 3/1/14 | 91 | |||||||
Cincinnati | OH | Homewood Suites | 3/1/14 | 76 | |||||||
Tulsa | OK | Hampton Inn & Suites | 3/1/14 | 102 | |||||||
Jackson | TN | Courtyard | 12/16/08 | 94 | |||||||
Brownsville | TX | Courtyard | 3/1/14 | 90 | |||||||
San Antonio | TX | TownePlace Suites | 3/1/14 | 123 | |||||||
Total | 1,787 |
Credit_Facilities_and_Mortgage1
Credit Facilities and Mortgage Debt (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||
Schedule of Debt [Table Text Block] | As of March 31, 2015, the Company had approximately $503.4 million in outstanding property level debt secured by 45 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 loans generally provide for monthly payments of principal and interest on an amortized basis. The loans are generally subject to defeasance or prepayment penalties if prepaid. The following table sets forth the hotel properties securing each loan, the interest rate, loan assumption or origination date, maturity date, the principal amount assumed or originated, and the outstanding balance prior to any fair value adjustments as of March 31, 2015 and December 31, 2014 for each of the Company’s debt obligations. All dollar amounts are in thousands. | ||||||||||||||||||||||||
Location | Brand | Interest Rate (1) | Loan Assumption or | Maturity Date | Principal Assumed or Originated | Outstanding balance as of | Outstanding balance as of | ||||||||||||||||||
Origination Date | 31-Mar-15 | 31-Dec-14 | |||||||||||||||||||||||
Overland Park, KS | Residence Inn | 5.74 | % | 3/1/14 | -2 | $ | 6,018 | $ | 0 | $ | 5,833 | ||||||||||||||
Concord, NC | Hampton Inn | 6.1 | % | 3/1/14 | -3 | 4,718 | 0 | 4,644 | |||||||||||||||||
Westford, MA | Residence Inn | 5.3 | % | -4 | 3/1/14 | -5 | 6,530 | 0 | 6,397 | ||||||||||||||||
Dallas, TX | Hilton | 6.63 | % | 5/17/11 | -6 | 20,988 | 18,744 | 18,913 | |||||||||||||||||
Rogers, AR | Hampton Inn | 5.2 | % | 8/31/10 | 9/1/15 | 8,337 | 7,543 | 7,593 | |||||||||||||||||
St. Louis, MO | Hampton Inn | 5.3 | % | 8/31/10 | 9/1/15 | 13,915 | 12,610 | 12,692 | |||||||||||||||||
Kansas City, MO | Hampton Inn | 5.45 | % | 8/31/10 | 10/1/15 | 6,517 | 5,924 | 5,961 | |||||||||||||||||
Allen, TX | Hilton Garden Inn | 5.37 | % | 10/31/08 | 10/11/15 | 10,787 | 9,498 | 9,559 | |||||||||||||||||
Kansas City, MO | Residence Inn | 5.74 | % | 3/1/14 | 11/1/15 | 10,602 | 10,362 | 10,420 | |||||||||||||||||
Fayetteville, NC | Residence Inn | 5.14 | % | 3/1/14 | 12/1/15 | 6,545 | 6,368 | 6,410 | |||||||||||||||||
Austin, TX | Homewood Suites | 5.99 | % | 4/14/09 | 3/1/16 | 7,556 | 6,428 | 6,486 | |||||||||||||||||
Austin, TX | Hampton Inn | 5.95 | % | 4/14/09 | 3/1/16 | 7,553 | 6,420 | 6,478 | |||||||||||||||||
Tupelo, MS | Hampton Inn | 5.9 | % | 3/1/14 | 3/1/16 | 3,124 | 2,932 | 2,977 | |||||||||||||||||
Houston, TX | Residence Inn | 5.71 | % | 3/1/14 | 3/1/16 | 9,930 | 9,687 | 9,745 | |||||||||||||||||
Hilton Head, SC | Hilton Garden Inn | 6.29 | % | 3/1/14 | 4/11/16 | 5,557 | 5,364 | 5,410 | |||||||||||||||||
Round Rock, TX | Hampton Inn | 5.95 | % | 3/6/09 | 5/1/16 | 4,175 | 3,551 | 3,583 | |||||||||||||||||
Highlands Ranch, CO | Residence Inn | 5.94 | % | 3/1/14 | 6/1/16 | 10,494 | 10,274 | 10,327 | |||||||||||||||||
Texarkana, TX | Hampton Inn & Suites | 6.9 | % | 1/31/11 | 7/8/16 | 4,954 | 4,643 | 4,665 | |||||||||||||||||
Bristol, VA | Courtyard | 6.59 | % | 11/7/08 | 8/1/16 | 9,767 | 8,877 | 8,922 | |||||||||||||||||
Virginia Beach, VA | Courtyard | 6.02 | % | 3/1/14 | 11/11/16 | 13,931 | 13,620 | 13,695 | |||||||||||||||||
Virginia Beach, VA | Courtyard | 6.02 | % | 3/1/14 | 11/11/16 | 16,813 | 16,438 | 16,529 | |||||||||||||||||
Charlottesville, VA | Courtyard | 6.02 | % | 3/1/14 | 11/11/16 | 14,892 | 14,559 | 14,640 | |||||||||||||||||
Carolina Beach, NC | Courtyard | 6.02 | % | 3/1/14 | 11/11/16 | 12,009 | 11,741 | 11,806 | |||||||||||||||||
Winston-Salem, NC | Courtyard | 5.94 | % | 3/1/14 | 12/8/16 | 7,458 | 7,318 | 7,352 | |||||||||||||||||
Lewisville, TX (7) | Hilton Garden Inn | 0 | % | 10/16/08 | 12/31/16 | 3,750 | 2,000 | 2,000 | |||||||||||||||||
Oceanside, CA | Residence Inn | 4.24 | % | -4 | 3/1/14 | 1/13/17 | 15,662 | 15,324 | 15,402 | ||||||||||||||||
Burbank, CA | Residence Inn | 4.24 | % | -4 | 3/1/14 | 1/13/17 | 23,493 | 22,986 | 23,103 | ||||||||||||||||
Savannah, GA | Hilton Garden Inn | 5.87 | % | 3/1/14 | 2/1/17 | 4,977 | 4,809 | 4,849 | |||||||||||||||||
Greenville, SC | Residence Inn | 6.03 | % | 3/1/14 | 2/8/17 | 6,012 | 5,893 | 5,922 | |||||||||||||||||
Birmingham, AL | Homewood Suites | 6.03 | % | 3/1/14 | 2/8/17 | 10,908 | 10,693 | 10,745 | |||||||||||||||||
Jacksonville, FL | Homewood Suites | 6.03 | % | 3/1/14 | 2/8/17 | 15,856 | 15,543 | 15,619 | |||||||||||||||||
Irving, TX | Homewood Suites | 5.83 | % | 12/29/10 | 4/11/17 | 6,052 | 5,393 | 5,437 | |||||||||||||||||
Duncanville, TX | Hilton Garden Inn | 5.88 | % | 10/21/08 | 5/11/17 | 13,966 | 12,595 | 12,661 | |||||||||||||||||
Grapevine, TX | Hilton Garden Inn | 4.89 | % | 8/29/12 | 9/1/22 | 11,810 | 11,187 | 11,254 | |||||||||||||||||
Collegeville/Philadelphia, PA | Courtyard | 4.89 | % | 8/30/12 | 9/1/22 | 12,650 | 11,982 | 12,055 | |||||||||||||||||
Hattiesburg, MS | Courtyard | 5 | % | 3/1/14 | 9/1/22 | 5,732 | 5,594 | 5,627 | |||||||||||||||||
Rancho Bernardo, CA | Courtyard | 5 | % | 3/1/14 | 9/1/22 | 15,060 | 14,695 | 14,782 | |||||||||||||||||
Kirkland, WA | Courtyard | 5 | % | 3/1/14 | 9/1/22 | 12,145 | 11,851 | 11,921 | |||||||||||||||||
Seattle, WA | Residence Inn | 4.96 | % | 3/1/14 | 9/1/22 | 28,269 | 27,579 | 27,744 | |||||||||||||||||
Anchorage, AK | Embassy Suites | 4.97 | % | 9/13/12 | 10/1/22 | 23,230 | 22,062 | 22,193 | |||||||||||||||||
Somerset, NJ | Courtyard | 4.73 | % | 3/1/14 | 10/6/22 | 8,750 | 8,531 | 8,584 | |||||||||||||||||
Tukwila, WA | Homewood Suites | 4.73 | % | 3/1/14 | 10/6/22 | 9,431 | 9,195 | 9,251 | |||||||||||||||||
Prattville, AL | Courtyard | 4.12 | % | 3/1/14 | 2/6/23 | 6,596 | 6,420 | 6,462 | |||||||||||||||||
Huntsville, AL | Homewood Suites | 4.12 | % | 3/1/14 | 2/6/23 | 8,306 | 8,085 | 8,137 | |||||||||||||||||
San Diego, CA | Residence Inn | 3.97 | % | 3/1/14 | 3/6/23 | 18,600 | 18,096 | 18,216 | |||||||||||||||||
Miami, FL | Homewood Suites | 4.02 | % | 3/1/14 | 4/1/23 | 16,677 | 16,231 | 16,337 | |||||||||||||||||
New Orleans, LA | Homewood Suites | 4.36 | % | 7/17/14 | 8/11/24 | 27,000 | 26,654 | 26,806 | |||||||||||||||||
Westford, MA | Residence Inn | 4.28 | % | 3/18/15 | 4/11/25 | -5 | 10,000 | 10,000 | 0 | ||||||||||||||||
Malvern/Philadelphia, PA | Courtyard | 6.5 | % | 11/30/10 | 10/1/32 | -8 | 7,894 | 7,078 | 7,132 | ||||||||||||||||
$ | 545,996 | $ | 503,377 | $ | 513,276 | ||||||||||||||||||||
Unamortized fair value adjustment of assumed debt | 3,639 | 4,694 | |||||||||||||||||||||||
Total | $ | 507,016 | $ | 517,970 | |||||||||||||||||||||
-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 was repaid in full on January 2, 2015. | ||||||||||||||||||||||||
-3 | Property securing loan was sold on February 26, 2015 and was classified as held for sale as of December 31, 2014. Debt was extinguished prior to the sale on February 13, 2015. | ||||||||||||||||||||||||
-4 | The annual fixed interest rate gives effect to an interest rate swap agreement assumed by the Company with the mortgage debt. | ||||||||||||||||||||||||
-5 | Loan was refinanced on March 18, 2015, and the existing related swap was terminated. | ||||||||||||||||||||||||
-6 | Loan was repaid in full on April 6, 2015. | ||||||||||||||||||||||||
-7 | Unsecured loan. | ||||||||||||||||||||||||
-8 | 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. |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
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 March 31, 2015 and December 31, 2014 (in thousands): | |||||||||||||
Fair value | ||||||||||||||
Related debt | Notional amount at March 31, 2015 | Maturity date | 31-Mar-15 | 31-Dec-14 | ||||||||||
Term loan facility (1) | $ | 100,000 | 3/1/19 | $ | (1,553 | ) | $ | (511 | ) | |||||
Westford Residence Inn (2)(3) | 0 | 10/1/15 | 0 | (74 | ) | |||||||||
Oceanside Residence Inn/Burbank Residence Inn (2)(4) | 0 | 1/13/15 | 0 | (11 | ) | |||||||||
Oceanside Residence Inn/Burbank Residence Inn (2)(5) | 38,310 | 1/13/17 | (296 | ) | (183 | ) | ||||||||
(1) | Designated as a cash flow hedge through March 2, 2015 and was fully effective during this period. From March 3, 2015 and thereafter, due to a potential change in the underlying hedged debt instrument as discussed above, the swap is no longer designated as a cash flow hedge. | |||||||||||||
(2) | Not designated as a cash flow hedge. | |||||||||||||
(3) | On March 18, 2015, the Company refinanced the related mortgage note and terminated this swap agreement. As part of this termination, the Company paid a fee of approximately $0.05 million to satisfy the outstanding liability at the time of termination. | |||||||||||||
-4 | Swap matured during the first quarter of 2015. | |||||||||||||
-5 | Effective date of the forward interest rate swap agreement was January 13, 2015, the same date the previous swap agreement matured. |
Subsequent_Events_Tables
Subsequent Events (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||
Schedule of Subsequent Events [Table Text Block] | Subsequent to March 31, 2015, the Company entered into a series of contracts for the potential purchase of five hotels. Although the Company is working towards acquiring these hotels, there are many conditions to closing that have not yet been satisfied and there can be no assurance that a closing on these hotels will occur under the outstanding purchase contracts. The following table summarizes the hotel and contract information. All dollar amounts are in thousands. | ||||||||||||||||
Date of Purchase Contract | Rooms | Gross Purchase Price | Initial Refundable Deposit | ||||||||||||||
Location | Brand | ||||||||||||||||
Hartford, CT (a) | Homewood Suites | 4/23/15 | 116 | $ | 18,500 | $ | 500 | ||||||||||
Burbank, CA (b) | SpringHill Suites | 4/23/15 | 170 | 60,000 | 100 | ||||||||||||
Atlanta, GA (b) | Home2 Suites | 5/5/15 | 128 | 24,600 | 100 | ||||||||||||
Cypress, CA | Hampton Inn | 5/5/15 | 110 | 19,800 | 500 | ||||||||||||
Fort Lauderdale, FL | Hampton Inn | 5/5/15 | 156 | 23,000 | 500 | ||||||||||||
680 | $ | 145,900 | $ | 1,700 | |||||||||||||
(a) | The purchase contract for this hotel requires the Company to assume approximately $13.4 million in mortgage debt. This loan provides for monthly payments of principal and interest on an amortized basis. | ||||||||||||||||
(b) | These hotels are currently under development. The table shows the expected number of rooms upon hotel completion and the expected franchise. |
Organization_and_Summary_of_Si1
Organization and Summary of Significant Accounting Policies (Details) | 3 Months Ended | 0 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 01, 2014 | |
Organization and Summary of Significant Accounting Policies (Details) [Line Items] | |||
Number of Reportable Segments | 1 | ||
Weighted Average Number Diluted Shares Outstanding Adjustment (in Shares) | 0 | 0 | |
Series B Convertible Preferred Shares Converted to Common Shares [Member] | Termination of Advisory Agreements [Member] | Apple Seven and Apple Eight Mergers and Related Transactions [Member] | |||
Organization and Summary of Significant Accounting Policies (Details) [Line Items] | |||
Stock Issued During Period, Shares, Conversion of Convertible Securities (in Shares) | 11,600,000 | ||
Hotels [Member] | |||
Organization and Summary of Significant Accounting Policies (Details) [Line Items] | |||
Number of Real Estate Properties | 173 | ||
Number of States in which Entity Operates | 32 | ||
Aggregate Hotel Rooms [Member] | |||
Organization and Summary of Significant Accounting Policies (Details) [Line Items] | |||
Number of Units in Real Estate Property | 22,003 |
Mergers_with_Apple_REIT_Seven_2
Mergers with Apple REIT Seven, Inc. and Apple REIT Eight, Inc. (Details) (USD $) | 3 Months Ended | 0 Months Ended | 15 Months Ended | 27 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 01, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 03, 2014 | Feb. 26, 2015 | |
Mergers with Apple REIT Seven, Inc. and Apple REIT Eight, Inc. (Details) [Line Items] | |||||||
Stock Issued During Period, Value, Acquisitions | $0 | $1,814,613,000 | |||||
Convertible Preferred Stock Converted to Other Securities | 0 | 117,133,000 | |||||
Transaction and Potential Listing Costs | 1,224,000 | 2,110,000 | |||||
Revenues | 210,352,000 | 137,121,000 | |||||
Operating Income (Loss) | 36,287,000 | -90,547,000 | |||||
Total Consideration of Apple Hospitality's Common Shares Transferred [Member] | Apple Seven and Apple Eight Mergers and Related Transactions [Member] | Apple Hospitality [Member] | |||||||
Mergers with Apple REIT Seven, Inc. and Apple REIT Eight, Inc. (Details) [Line Items] | |||||||
Stock Issued During Period, Shares, Acquisitions (in Shares) | 180,000,000 | ||||||
Stock Issued During Period, Value, Acquisitions | 1,800,000,000 | ||||||
Fair Value Estimate of Company Common Stock Per Share (in Dollars per share) | $10.10 | ||||||
Series B Convertible Preferred Shares Converted to Common Shares [Member] | Termination of Advisory Agreements [Member] | Apple Seven and Apple Eight Mergers and Related Transactions [Member] | |||||||
Mergers with Apple REIT Seven, Inc. and Apple REIT Eight, Inc. (Details) [Line Items] | |||||||
Fair Value Estimate of Company Common Stock Per Share (in Dollars per share) | $10.10 | ||||||
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 | 117,100,000 | ||||||
Excluded From Pro Forma Amounts [Member] | Apple Seven and Apple Eight Mergers and Related Transactions [Member] | |||||||
Mergers with Apple REIT Seven, Inc. and Apple REIT Eight, Inc. (Details) [Line Items] | |||||||
Convertible Preferred Stock Converted to Other Securities | 117,100,000 | ||||||
Transaction and Potential Listing Costs | 700,000 | 2,000,000 | |||||
Assumed Mortgage Debt [Member] | Apple Seven and Apple Eight Mergers [Member] | |||||||
Mergers with Apple REIT Seven, Inc. and Apple REIT Eight, Inc. (Details) [Line Items] | |||||||
Noncash or Part Noncash Acquisition, Debt Assumed | 385,100,000 | ||||||
Number of Hotel Properties Used to Secure Debt | 34 | ||||||
Credit Facilities Assumed and Subsequently Extinguished [Member] | Apple Seven and Apple Eight Mergers [Member] | |||||||
Mergers with Apple REIT Seven, Inc. and Apple REIT Eight, Inc. (Details) [Line Items] | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Credit Facilities | 129,500,000 | ||||||
$345 Million Unsecured Credit Facility [Member] | |||||||
Mergers with Apple REIT Seven, Inc. and Apple REIT Eight, Inc. (Details) [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 345,000,000 | 345,000,000 | 345,000,000 | 345,000,000 | |||
Hotels Acquired from Apple Seven and Apple Eight Mergers [Member] | Sale of Hotels Held for Sale [Member] | |||||||
Mergers with Apple REIT Seven, Inc. and Apple REIT Eight, Inc. (Details) [Line Items] | |||||||
Number of Real Estate Properties | 12 | ||||||
Hotels Acquired from Apple Seven and Apple Eight Mergers [Member] | |||||||
Mergers with Apple REIT Seven, Inc. and Apple REIT Eight, Inc. (Details) [Line Items] | |||||||
Number of Real Estate Properties | 99 | ||||||
Number of States in which Entity Operates | 27 | ||||||
Hotels and Aggregate Hotel Rooms Acquired from Apple Seven Merger [Member] | |||||||
Mergers with Apple REIT Seven, Inc. and Apple REIT Eight, Inc. (Details) [Line Items] | |||||||
Number of Real Estate Properties | 48 | ||||||
Number of Units in Real Estate Property | 6,209 | ||||||
Hotels and Aggregate Hotel Rooms Acquired from Apple Eight Merger [Member] | |||||||
Mergers with Apple REIT Seven, Inc. and Apple REIT Eight, Inc. (Details) [Line Items] | |||||||
Number of Real Estate Properties | 51 | ||||||
Number of Units in Real Estate Property | 5,912 | ||||||
Apple Seven and Apple Eight Mergers [Member] | Costs Incurred to Defend Ongoing Purported Class Action [Member] | |||||||
Mergers with Apple REIT Seven, Inc. and Apple REIT Eight, Inc. (Details) [Line Items] | |||||||
Transaction and Potential Listing Costs | 1,400,000 | ||||||
Apple Seven and Apple Eight Mergers [Member] | |||||||
Mergers with Apple REIT Seven, Inc. and Apple REIT Eight, Inc. (Details) [Line Items] | |||||||
Transaction and Potential Listing Costs | 700,000 | 2,000,000 | 7,200,000 | ||||
Revenues | 38,400,000 | ||||||
Operating Income (Loss) | 8,700,000 | ||||||
Sale of Hotels Held for Sale [Member] | |||||||
Mergers with Apple REIT Seven, Inc. and Apple REIT Eight, Inc. (Details) [Line Items] | |||||||
Number of Real Estate Properties | 18 | ||||||
Number of Units in Real Estate Property | 1,787 | 1,787 | 1,787 | ||||
Operating Income (Loss) | $2,000,000 | $2,000,000 |
Mergers_with_Apple_REIT_Seven_3
Mergers with Apple REIT Seven, Inc. and Apple REIT Eight, Inc. (Details) - Business Acquisition, Pro Forma Information (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Business Acquisition, Pro Forma Information [Abstract] | ||
Total revenue | $210,352 | $197,969 |
Net income | $44,573 | $25,993 |
Net income per share - basic and diluted (in Dollars per share) | $0.12 | $0.07 |
Weighted average common shares outstanding - basic and diluted (in Shares) | 372,892 | 373,821 |
Investment_in_Real_Estate_Deta
Investment in Real Estate (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Investment in Real Estate (Details) [Line Items] | ||
Impairment of Real Estate (in Dollars) | $0 | $0 |
Hotels [Member] | ||
Investment in Real Estate (Details) [Line Items] | ||
Number of Real Estate Properties | 173 | |
Number of States in which Entity Operates | 32 | |
Aggregate Hotel Rooms [Member] | ||
Investment in Real Estate (Details) [Line Items] | ||
Number of Units in Real Estate Property | 22,003 |
Investment_in_Real_Estate_Deta1
Investment in Real Estate (Details) - Investment in Real Estate (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Investment in Real Estate [Abstract] | ||
Land | $520,406 | $520,406 |
Building and Improvements | 3,024,406 | 3,010,314 |
Furniture, Fixtures and Equipment | 256,953 | 251,170 |
Franchise Fees | 7,517 | 7,490 |
3,809,282 | 3,789,380 | |
Less Accumulated Depreciation | -327,243 | -296,559 |
Investment in Real Estate, net | $3,482,039 | $3,492,821 |
Dispositions_Details
Dispositions (Details) (USD $) | 3 Months Ended | 2 Months Ended | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Feb. 26, 2015 | Feb. 13, 2015 | Dec. 31, 2014 | Mar. 01, 2014 | |
Dispositions (Details) [Line Items] | ||||||
Gain (Loss) on Disposition of Assets | $15,629,000 | $0 | ||||
Real Estate Held-for-sale | 0 | 195,588,000 | ||||
Operating Income (Loss) | 36,287,000 | -90,547,000 | ||||
TownePlace Suites Columbus, GA [Member] | Hotel Held for Sale Excluded from Sale and Reclassified as Held and Used [Member] | ||||||
Dispositions (Details) [Line Items] | ||||||
Sale of Real Estate Assets, Gross Sales Price | 6,600,000 | |||||
Hampton Inn Concord, NC [Member] | Sale of Hotels Held for Sale [Member] | ||||||
Dispositions (Details) [Line Items] | ||||||
Repayments of Secured Debt | 4,600,000 | |||||
Hotels Acquired from Apple Seven and Apple Eight Mergers [Member] | Sale of Hotels Held for Sale [Member] | ||||||
Dispositions (Details) [Line Items] | ||||||
Number of Real Estate Properties | 12 | |||||
Hotels Acquired from Apple Seven and Apple Eight Mergers [Member] | ||||||
Dispositions (Details) [Line Items] | ||||||
Number of Real Estate Properties | 99 | |||||
Hotels Held for Sale [Member] | ||||||
Dispositions (Details) [Line Items] | ||||||
Number of Real Estate Properties | 19 | |||||
Sale of Real Estate Assets, Gross Sales Price | 213,000,000 | |||||
Sale of Hotels Held for Sale [Member] | ||||||
Dispositions (Details) [Line Items] | ||||||
Number of Real Estate Properties | 18 | |||||
Sale of Real Estate Assets, Gross Sales Price | 206,400,000 | |||||
Gain (Loss) on Disposition of Assets | 15,600,000 | |||||
Real Estate Held-for-sale | 188,300,000 | |||||
Operating Income (Loss) | $2,000,000 | $2,000,000 |
Dispositions_Details_Schedule_
Dispositions (Details) - Schedule of Hotels Sold | 3 Months Ended |
Mar. 31, 2015 | |
TownePlace Suites Huntsville, AL [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Date Acquired | 1-Mar-14 |
Rooms | 86 |
Courtyard Troy, AL [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Date Acquired | 18-Jun-09 |
Rooms | 90 |
Hampton Inn Troy, AL [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Date Acquired | 1-Mar-14 |
Rooms | 82 |
Fairfield Inn & Suites Rogers, AR [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Date Acquired | 1-Mar-14 |
Rooms | 99 |
Hampton Inn & Suites Pueblo, CO [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Date Acquired | 31-Oct-08 |
Rooms | 81 |
Hampton Inn Port Wentworth, GA [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Date Acquired | 1-Mar-14 |
Rooms | 106 |
Hampton Inn Bowling Green, KY [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Date Acquired | 1-Mar-14 |
Rooms | 130 |
Courtyard Alexandria, LA [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Date Acquired | 15-Sep-10 |
Rooms | 96 |
Hilton Garden Inn West Monroe, LA [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Date Acquired | 30-Jul-10 |
Rooms | 134 |
Hampton Inn Concord, NC [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Date Acquired | 1-Mar-14 |
Rooms | 101 |
Hampton Inn Dunn, NC [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Date Acquired | 1-Mar-14 |
Rooms | 120 |
TownePlace Suites Jacksonville, NC [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Date Acquired | 16-Feb-10 |
Rooms | 86 |
Hampton Inn Matthews, NC [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Date Acquired | 1-Mar-14 |
Rooms | 91 |
Homewood Suites Cincinnati, OH [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Date Acquired | 1-Mar-14 |
Rooms | 76 |
Hampton Inn & Suites Tulsa, OK [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Date Acquired | 1-Mar-14 |
Rooms | 102 |
Courtyard Jackson, TN [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Date Acquired | 16-Dec-08 |
Rooms | 94 |
Courtyard Brownsville, TX [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Date Acquired | 1-Mar-14 |
Rooms | 90 |
TownePlace Suites San Antonio, TX [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Date Acquired | 1-Mar-14 |
Rooms | 123 |
Sale of Hotels Held for Sale [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Rooms | 1,787 |
Credit_Facilities_and_Mortgage2
Credit Facilities and Mortgage Debt (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Dec. 31, 2014 | Mar. 03, 2014 | |
Credit Facilities and Mortgage Debt (Details) [Line Items] | |||
Long-term Line of Credit (in Dollars) | $100,000,000 | $191,600,000 | |
$245 Million Unsecured Revolving Credit Facility [Member] | $345 Million Unsecured Credit Facility [Member] | Minimum [Member] | |||
Credit Facilities and Mortgage Debt (Details) [Line Items] | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.20% | ||
$245 Million Unsecured Revolving Credit Facility [Member] | $345 Million Unsecured Credit Facility [Member] | Maximum [Member] | |||
Credit Facilities and Mortgage Debt (Details) [Line Items] | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.30% | ||
$245 Million Unsecured Revolving Credit Facility [Member] | $345 Million Unsecured Credit Facility [Member] | |||
Credit Facilities and Mortgage Debt (Details) [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity (in Dollars) | 245,000,000 | 245,000,000 | 245,000,000 |
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 | ||
Long-term Line of Credit (in Dollars) | 91,600,000 | ||
Line of Credit Facility, Interest Rate at Period End | 1.77% | ||
Unsecured $100 Million Term Loan [Member] | $345 Million Unsecured Credit Facility [Member] | |||
Credit Facilities and Mortgage Debt (Details) [Line Items] | |||
Debt Instrument, Face Amount (in Dollars) | 100,000,000 | ||
Debt Instrument, Maturity Date, Description | matures in March 2019 | ||
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 | ||
Long-term Line of Credit (in Dollars) | 100,000,000 | 100,000,000 | |
Line of Credit Facility, Interest Rate at Period End | 3.13% | 3.13% | |
Mortgage Debt [Member] | |||
Credit Facilities and Mortgage Debt (Details) [Line Items] | |||
Debt Instrument, Maturity Date, Description | maturity dates ranging from April 2015 to October 2032 | ||
Long-term Debt, Gross (in Dollars) | 503,400,000 | ||
Number of Hotel Properties Used to Secure Debt | 45 | ||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 0.00% | ||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 6.90% | ||
Debt Instrument, Interest Rate, Effective Percentage Rate Range, Minimum | 3.66% | ||
Debt Instrument, Interest Rate, Effective Percentage Rate Range, Maximum | 6.52% | ||
$345 Million Unsecured Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||
Credit Facilities and Mortgage Debt (Details) [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.55% | ||
$345 Million Unsecured Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||
Credit Facilities and Mortgage Debt (Details) [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.35% | ||
$345 Million Unsecured Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Credit Facilities and Mortgage Debt (Details) [Line Items] | |||
Debt Instrument, Description of Variable Rate Basis | one-month LIBOR | ||
$345 Million Unsecured Credit Facility [Member] | |||
Credit Facilities and Mortgage Debt (Details) [Line Items] | |||
Line of Credit Facility, Initiation Date | 3-Mar-14 | ||
Line of Credit Facility, Maximum Borrowing Capacity (in Dollars) | 345,000,000 | 345,000,000 | |
Line of Credit Facility, Borrowing Capacity, Description | The $345 million credit facility may be increased to $700 million, subject to certain conditions. | ||
Long-term Line of Credit (in Dollars) | $100,000,000 | $191,600,000 | |
Line of Credit Facility, Covenant Terms | The $345 million credit facility contains customary affirmative covenants, negative covenants and events of defaults. It also contains covenants restricting the level of certain investments and quarterly financial covenants which include, among others, a minimum tangible net worth, maximum debt limits, minimum interest and fixed charge coverage ratios and maximum dividend payout ratio. The Company was in compliance with the applicable covenants at March 31, 2015. |
Credit_Facilities_and_Mortgage3
Credit Facilities and Mortgage Debt (Details) - Mortgage Note Debt (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | |
Credit Facilities and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | |||
Total | $507,016 | $517,970 | |
Total [Member] | |||
Credit Facilities and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | |||
Principal Assumed or Originated | 545,996 | ||
Outstanding Balance | 503,377 | 513,276 | |
Unamortized fair value adjustment of assumed debt | 3,639 | 4,694 | |
Total | 507,016 | 517,970 | |
Residence Inn Overland Park, KS [Member] | |||
Credit Facilities 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 | ||
Principal Assumed or Originated | 6,018 | ||
Outstanding Balance | 0 | [2] | 5,833 |
Hampton Inn Concord, NC [Member] | |||
Credit Facilities 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 | ||
Principal Assumed or Originated | 4,718 | ||
Outstanding Balance | 0 | [3] | 4,644 |
Residence Inn Westford, MA [Member] | |||
Credit Facilities and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | |||
Brand | Residence Inn | ||
Interest Rate | 5.30% | [1],[4] | |
Loan Assumption or Origination Date | 1-Mar-14 | ||
Principal Assumed or Originated | 6,530 | ||
Outstanding Balance | 0 | [5] | 6,397 |
Hilton Dallas, TX [Member] | |||
Credit Facilities and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | |||
Brand | Hilton | ||
Interest Rate | 6.63% | [1] | |
Loan Assumption or Origination Date | 17-May-11 | ||
Principal Assumed or Originated | 20,988 | ||
Outstanding Balance | 18,744 | [6] | 18,913 |
Hampton Inn Rogers, AR [Member] | |||
Credit Facilities 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 | 7,543 | 7,593 | |
Hampton Inn St. Louis, MO [Member] | |||
Credit Facilities 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 | 12,610 | 12,692 | |
Hampton Inn Kansas City, MO [Member] | |||
Credit Facilities 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 | 5,924 | 5,961 | |
Hilton Garden Inn Allen, TX [Member] | |||
Credit Facilities 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 | 9,498 | 9,559 | |
Residence Inn Kansas City, MO [Member] | |||
Credit Facilities 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 | 10,362 | 10,420 | |
Residence Inn Fayetteville, NC [Member] | |||
Credit Facilities 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 | 6,368 | 6,410 | |
Homewood Suites Austin, TX [Member] | |||
Credit Facilities 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 | 6,428 | 6,486 | |
Hampton Inn Austin, TX [Member] | |||
Credit Facilities 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 | 6,420 | 6,478 | |
Hampton Inn Tupelo, MS [Member] | |||
Credit Facilities 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 | 2,932 | 2,977 | |
Residence Inn Houston, TX [Member] | |||
Credit Facilities 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 | 9,687 | 9,745 | |
Hilton Garden Inn Hilton Head, SC [Member] | |||
Credit Facilities 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 | 5,364 | 5,410 | |
Hampton Inn Round Rock, TX [Member] | |||
Credit Facilities 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 | 3,551 | 3,583 | |
Residence Inn Highlands Ranch, CO [Member] | |||
Credit Facilities 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 | 10,274 | 10,327 | |
Hampton Inn & Suites Texarkana, TX [Member] | |||
Credit Facilities 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 | 4,643 | 4,665 | |
Courtyard Bristol, VA [Member] | |||
Credit Facilities 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 | 8,877 | 8,922 | |
Courtyard Virginia Beach, VA [Member] | |||
Credit Facilities 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 | 13,620 | 13,695 | |
Courtyard Virginia Beach, VA [Member] | |||
Credit Facilities 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 | 16,438 | 16,529 | |
Courtyard Charlottesville, VA [Member] | |||
Credit Facilities 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 | 14,559 | 14,640 | |
Courtyard Carolina Beach, NC [Member] | |||
Credit Facilities 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 | 11,741 | 11,806 | |
Courtyard Winston-Salem, NC [Member] | |||
Credit Facilities 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 | 7,318 | 7,352 | |
Hilton Garden Inn Lewisville, TX [Member] | |||
Credit Facilities and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | |||
Brand | Hilton Garden Inn | [7] | |
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 Facilities and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | |||
Brand | Residence Inn | ||
Interest Rate | 4.24% | [1],[4] | |
Loan Assumption or Origination Date | 1-Mar-14 | ||
Maturity Date | 13-Jan-17 | ||
Principal Assumed or Originated | 15,662 | ||
Outstanding Balance | 15,324 | 15,402 | |
Residence Inn Burbank, CA [Member] | |||
Credit Facilities and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | |||
Brand | Residence Inn | ||
Interest Rate | 4.24% | [1],[4] | |
Loan Assumption or Origination Date | 1-Mar-14 | ||
Maturity Date | 13-Jan-17 | ||
Principal Assumed or Originated | 23,493 | ||
Outstanding Balance | 22,986 | 23,103 | |
Hilton Garden Inn Savannah, GA [Member] | |||
Credit Facilities 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 | 4,809 | 4,849 | |
Residence Inn Greenville, SC [Member] | |||
Credit Facilities 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 | 5,893 | 5,922 | |
Homewood Suites Birmingham, AL [Member] | |||
Credit Facilities 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 | 10,693 | 10,745 | |
Homewood Suites Jacksonville, FL [Member] | |||
Credit Facilities 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 | 15,543 | 15,619 | |
Homewood Suites Irving, TX [Member] | |||
Credit Facilities 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 | 5,393 | 5,437 | |
Hilton Garden Inn Duncanville, TX [Member] | |||
Credit Facilities 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 | 12,595 | 12,661 | |
Hilton Garden Inn Grapevine, TX [Member] | |||
Credit Facilities 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 | 11,187 | 11,254 | |
Courtyard Collegeville/Philadelphia, PA [Member] | |||
Credit Facilities 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 | 11,982 | 12,055 | |
Courtyard Hattiesburg, MS [Member] | |||
Credit Facilities 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 | 5,594 | 5,627 | |
Courtyard Rancho Bernardo, CA [Member] | |||
Credit Facilities 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 | 14,695 | 14,782 | |
Courtyard Kirkland, WA [Member] | |||
Credit Facilities 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 | 11,851 | 11,921 | |
Residence Inn Seattle, WA [Member] | |||
Credit Facilities 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 | 27,579 | 27,744 | |
Embassy Suites Anchorage, AK [Member] | |||
Credit Facilities 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 | 22,062 | 22,193 | |
Courtyard Somerset, NJ [Member] | |||
Credit Facilities 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 | 8,531 | 8,584 | |
Homewood Suites Tukwila, WA [Member] | |||
Credit Facilities 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 | 9,195 | 9,251 | |
Courtyard Pratville, AL [Member] | |||
Credit Facilities 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 | 6,420 | 6,462 | |
Homewood Suites Huntsville, AL [Member] | |||
Credit Facilities 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 | 8,085 | 8,137 | |
Residence Inn San Diego, CA [Member] | |||
Credit Facilities 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 | 18,096 | 18,216 | |
Homewood Suites Miami, FL [Member] | |||
Credit Facilities 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 | 16,231 | 16,337 | |
Homewood Suites New Orleans, LA [Member] | |||
Credit Facilities 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 | ||
Principal Assumed or Originated | 27,000 | ||
Outstanding Balance | 26,654 | 26,806 | |
Residence Inn Westford, MA [Member] | |||
Credit Facilities and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | |||
Brand | Residence Inn | ||
Interest Rate | 4.28% | [1] | |
Loan Assumption or Origination Date | 18-Mar-15 | ||
Maturity Date | 11-Apr-25 | [5] | |
Principal Assumed or Originated | 10,000 | ||
Outstanding Balance | 10,000 | 0 | |
Courtyard Malvern/Philadelphia, PA [Member] | |||
Credit Facilities 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 | [8] | |
Principal Assumed or Originated | 7,894 | ||
Outstanding Balance | $7,078 | $7,132 | |
[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 was repaid in full on January 2, 2015. | ||
[3] | Property securing loan was sold on February 26, 2015 and was classified as held for sale as of December 31, 2014. Debt was extinguished prior to the sale on February 13, 2015. | ||
[4] | The annual fixed interest rate gives effect to an interest rate swap agreement assumed by the Company with the mortgage debt. | ||
[5] | Loan was refinanced on March 18, 2015, and the existing related swap was terminated. | ||
[6] | Loan was repaid in full on April 6, 2015. | ||
[7] | Unsecured loan. | ||
[8] | 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. |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | ||
Fair Value of Financial Instruments (Details) [Line Items] | ||||
Long-term Debt | $607,000,000 | $709,600,000 | ||
Long-term Debt, Fair Value | 618,500,000 | 718,900,000 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | -785,000 | -511,000 | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | -274,000 | 468,000 | ||
Not Designated as Hedging Instrument [Member] | 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 | |||
Derivative, Notional Amount | 45,700,000 | |||
Number of variable rate mortgage loans with interest rate swap agreements | 2 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Interest Rate Swaps | -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 | ||
Number of Interest Rate Swaps Expired | 1 | |||
Number of Interest Rate Swaps Terminated | 1 | |||
Payment of Interest Rate Swap Termination Fees | 50,000 | |||
Derivative, Gain (Loss) on Derivative, Net | -100,000 | 200,000 | ||
From Inception through March 2, 2015 Designated as a Cash Flow Hedge and from March 3, 2015 through March 31, 2015 No Longer Designated as a Cash Flow Hedge [Member] | Unsecured $100 Million Term Loan Interest Rate Swap [Member] | ||||
Fair Value of Financial Instruments (Details) [Line Items] | ||||
Derivative, Notional Amount | 100,000,000 | [1] | 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, Gain (Loss) on Derivative, Net | -800,000 | |||
Derivative Inception Date | Mar-14 | |||
Interest Rate Derivative Liabilities, at Fair Value | 1,600,000 | 500,000 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | -800,000 | -500,000 | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | ($300,000) | $500,000 | ||
[1] | Designated as a cash flow hedge through March 2, 2015 and was fully effective during this period. From March 3, 2015 and thereafter, due to a potential change in the underlying hedged debt instrument as discussed above, the swap is no longer designated as a cash flow hedge. |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments (Details) - Schedule of Interest Rate Swap Agreements (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | |
From Inception through March 2, 2015 Designated as a Cash Flow Hedge and from March 3, 2015 through March 31, 2015 No Longer Designated as a Cash Flow Hedge [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] | $100,000 |
Maturity date | 1-Mar-19 | ||
Fair value | -1,553 | -511 | |
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 | 0 | [2],[3] | |
Maturity date | 1-Oct-15 | ||
Fair value | 0 | -74 | |
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 | 0 | [2],[4] | |
Maturity date | 13-Jan-15 | ||
Fair value | 0 | -11 | |
Not Designated as Hedging Instrument [Member] | Burbank and Oceanside Residence Inns Forward Interest Rate Swap Effective January 13, 2015 [Member] | |||
Fair Value of Financial Instruments (Details) - Schedule of Interest Rate Swap Agreements [Line Items] | |||
Notional amount | 38,310 | [2],[5] | |
Maturity date | 13-Jan-17 | ||
Fair value | ($296) | ($183) | |
[1] | Designated as a cash flow hedge through March 2, 2015 and was fully effective during this period. From March 3, 2015 and thereafter, due to a potential change in the underlying hedged debt instrument as discussed above, the swap is no longer designated as a cash flow hedge. | ||
[2] | Not designated as a cash flow hedge. | ||
[3] | On March 18, 2015, the Company refinanced the related mortgage note and terminated this swap agreement. As part of this termination, the Company paid a fee of approximately $0.05 million to satisfy the outstanding liability at the time of termination. | ||
[4] | Swap matured during the first quarter of 2015. | ||
[5] | Effective date of the forward interest rate swap agreement was January 13, 2015, the same date the previous swap agreement matured. |
Related_Parties_Details
Related Parties (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Related Parties (Details) [Line Items] | |||
Related Party Transaction, Description of Transaction | To efficiently manage cash disbursements, the Company, Apple Ten, A10A or ASRG may make payments for any or all of the related companies. Under the cash management process, each of the companies may advance or defer up to $1 million at any time. Each month, any outstanding amounts are settled among the affected companies. This process allows each company to minimize its cash on hand, which, in turn, reduces the cost of each company’s credit facility. The amounts outstanding at any point in time are not significant to any of the companies. | ||
Apple Ten [Member] | Subcontract Agreement between Apple Hospitality and Apple Ten Advisors, Inc. Effective March 1, 2014 [Member] | Advisory Fees Earned by Apple Hospitality [Member] | |||
Related Parties (Details) [Line Items] | |||
Related Party Transaction, Amounts of Transaction | -0.4 | ($0.10) | |
Apple Ten [Member] | Subcontract Agreement between Apple Hospitality and Apple Ten Advisors, Inc. Effective March 1, 2014 [Member] | |||
Related Parties (Details) [Line Items] | |||
Management Advisory Fee Received From Related Party, Percent | 0.1% to 0.25% | ||
Apple Air Holding, LLC [Member] | Apple Ten's Minority Interest [Member] | |||
Related Parties (Details) [Line Items] | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 26.00% | ||
Other Noncontrolling Interests | 1 | 1 | |
Apple Air Holding, LLC [Member] | |||
Related Parties (Details) [Line Items] | |||
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 74.00% | ||
Reimbursement Received From Related Parties For Their Proportionate Share of Staffing and Office Related Costs Provided by Apple Hospitality Effective March 1, 2014 [Member] | |||
Related Parties (Details) [Line Items] | |||
Related Party Transaction, Amounts of Transaction | -0.7 | ($0.30) |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 1 Months Ended | 3 Months Ended | 2 Months Ended | 6 Months Ended | 7 Months Ended | 12 Months Ended | |
Feb. 28, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 01, 2014 | Aug. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | |
Shareholders' Equity (Details) [Line Items] | |||||||
Payments of Ordinary Dividends, Common Stock (in Dollars) | $63,417,000 | $45,866,000 | |||||
Stockholders' Equity, Reverse Stock Split | In February 2015, the Company filed articles of amendment to the amended articles of incorporation of the Company that provide for a 50% reverse share split of the common shares of the Company immediately prior to, but subject to the effectiveness of, the initial listing of the Company’s common shares on a national securities exchange. The articles of amendment provide that, in the event a listing occurs, each common share of the Company will be reclassified into one-half (1/2) of such common share. Such reclassified common shares would have the same respective voting rights, preferences and relative, participating, optional or other rights, and qualifications, limitations or restrictions set forth in the amended articles of incorporation immediately prior to the effectiveness of the reclassification. These articles of amendment were previously approved by the Company’s shareholders at a special meeting of shareholders in February 2014 in connection with the approval of the A7 and A8 mergers. The potential reverse share split is not reflected in the Company’s common shares as of March 31, 2015. | ||||||
Distributions [Member] | |||||||
Shareholders' Equity (Details) [Line Items] | |||||||
Common Stock, Dividends, Per Share, Cash Paid | $0.17 | $0.19 | |||||
Payments of Ordinary Dividends, Common Stock (in Dollars) | 63,400,000 | 45,900,000 | |||||
Annual Distribution [Member] | |||||||
Shareholders' Equity (Details) [Line Items] | |||||||
Annual Distribution rate | $0.83 | $0.66 | $0.68 | ||||
Reinstated Share Redemption Program [Member] | |||||||
Shareholders' Equity (Details) [Line Items] | |||||||
Stock Redeemed or Called During Period, Shares (in Shares) | 1,200,000 | 0 | |||||
Share Redemption, Purchase Price | $9.20 | ||||||
Stock Redeemed or Called During Period, Value (in Dollars) | $10,800,000 |
Compensation_Plans_Details
Compensation Plans (Details) (2015 Incentive Plan [Member], USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Compensation Plans (Details) [Line Items] | |
Labor and Related Expense | 2,200,000 |
Accrued Bonuses, Current | 2,200,000 |
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 2016 [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 | 13,000,000 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 3 Months Ended | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Apr. 30, 2015 | 5-May-15 | Dec. 31, 2014 | |
Subsequent Events (Details) [Line Items] | |||||
Payments of Ordinary Dividends, Common Stock | $63,417,000 | $45,866,000 | |||
Subsequent Event [Member] | Reinstated Share Redemption Program [Member] | |||||
Subsequent Events (Details) [Line Items] | |||||
Stock Redeemed or Called During Period, Shares | 400,000 | ||||
Stock Redeemed or Called During Period, Value | 4,100,000 | ||||
Share Redemption, Purchase Price | $9.20 | ||||
Subsequent Event, Description | Following this redemption, the Board of Directors approved the termination of the limited share redemption program. No additional redemptions will be made under this program. | ||||
Subsequent Event [Member] | Dividend Reinvestment Plan [Member] | |||||
Subsequent Events (Details) [Line Items] | |||||
Subsequent Event, Description | In April 2015, the Board of Directors approved the termination of the Company’s suspended Dividend Reinvestment Plan, which had been suspended since June 2013. | ||||
Subsequent Event [Member] | Potential Listing of Company's Common Shares [Member] | |||||
Subsequent Events (Details) [Line Items] | |||||
Subsequent Event, Description | Company announced its intention to list the Company’s common shares on the New York Stock Exchange on or about May 18, 2015. Should a listing occur, the Board of Directors has authorized a reduction of the annual distribution rate from $0.68 per common share to $0.60 per common share (on a pre-reverse split basis) effective with the June 2015 distribution. The Company intends to continue to pay distributions on a monthly basis. | ||||
Subsequent Event [Member] | Homewood Suites Hartford, CT [Member] | Potential Purchase of Additional Hotels Under Contract [Member] | |||||
Subsequent Events (Details) [Line Items] | |||||
Noncash or Part Noncash Acquisition, Debt Assumed | 13,400,000 | ||||
Subsequent Event [Member] | Potential Purchase of Additional Hotels Under Contract [Member] | |||||
Subsequent Events (Details) [Line Items] | |||||
Potential Number of Hotel Properties | 5 | ||||
Subsequent Event [Member] | |||||
Subsequent Events (Details) [Line Items] | |||||
Payments of Ordinary Dividends, Common Stock | 21,100,000 | ||||
Common Stock, Dividends, Per Share, Cash Paid | $0.06 | ||||
Reinstated Share Redemption Program [Member] | |||||
Subsequent Events (Details) [Line Items] | |||||
Stock Redeemed or Called During Period, Shares | 1,200,000 | 0 | |||
Stock Redeemed or Called During Period, Value | $10,800,000 | ||||
Share Redemption, Purchase Price | $9.20 |
Subsequent_Events_Details_Pote
Subsequent Events (Details) - Potential Purchase of Additional Hotels Under Contract (Subsequent Event [Member], USD $) | 1 Months Ended | |
In Thousands, unless otherwise specified | 5-May-15 | |
Subsequent Event [Line Items] | ||
Rooms | 680 | |
Gross Purchase Price | $145,900 | |
Initial Refundable Deposit | 1,700 | |
Homewood Suites Hartford, CT [Member] | ||
Subsequent Event [Line Items] | ||
Brand | Homewood Suites | [1] |
Date of Purchase Contract | 23-Apr-15 | |
Rooms | 116 | |
Gross Purchase Price | 18,500 | |
Initial Refundable Deposit | 500 | |
SpringHill Suites Burbank, CA [Member] | ||
Subsequent Event [Line Items] | ||
Brand | SpringHill Suites | [2] |
Date of Purchase Contract | 23-Apr-15 | |
Rooms | 170 | |
Gross Purchase Price | 60,000 | |
Initial Refundable Deposit | 100 | |
Home2 Suites Atlanta, GA [Member] | ||
Subsequent Event [Line Items] | ||
Brand | Home2 Suites | [2] |
Date of Purchase Contract | 5-May-15 | |
Rooms | 128 | |
Gross Purchase Price | 24,600 | |
Initial Refundable Deposit | 100 | |
Hampton Inn Cypress, CA [Member] | ||
Subsequent Event [Line Items] | ||
Brand | Hampton Inn | |
Date of Purchase Contract | 5-May-15 | |
Rooms | 110 | |
Gross Purchase Price | 19,800 | |
Initial Refundable Deposit | 500 | |
Hampton Inn Fort Lauderdale, FL [Member] | ||
Subsequent Event [Line Items] | ||
Brand | Hampton Inn | |
Date of Purchase Contract | 5-May-15 | |
Rooms | 156 | |
Gross Purchase Price | 23,000 | |
Initial Refundable Deposit | $500 | |
[1] | The purchase contract for this hotel requires the Company to assume approximately $13.4 million in mortgage debt. This loan provides for monthly payments of principal and interest on an amortized basis. | |
[2] | These hotels are currently under development. The table shows the expected number of rooms upon hotel completion and the expected franchise. |