Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 01, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Apple Hospitality REIT, Inc. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 174,363,215 | |
Amendment Flag | false | |
Entity Central Index Key | 1,418,121 | |
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 | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Investment in real estate, net of accumulated depreciation of $390,065 and $296,559, respectively | $ 3,651,482 | $ 3,492,821 |
Assets held for sale | 0 | 195,588 |
Cash and cash equivalents | 105 | 0 |
Restricted cash-furniture, fixtures and other escrows | 25,700 | 32,526 |
Due from third party managers, net | 38,436 | 22,879 |
Other assets, net | 42,770 | 35,935 |
Total Assets | 3,758,493 | 3,779,749 |
Liabilities | ||
Credit facility | 500,500 | 191,600 |
Mortgage debt | 463,746 | 517,970 |
Accounts payable and other liabilities | 80,525 | 55,555 |
Total Liabilities | 1,044,771 | 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 174,404,915 and 186,910,407 shares, respectively | 3,501,252 | 3,737,328 |
Accumulated other comprehensive loss | (6,163) | (511) |
Distributions greater than net income | (781,367) | (722,193) |
Total Shareholders' Equity | 2,713,722 | 3,014,624 |
Total Liabilities and Shareholders' Equity | $ 3,758,493 | $ 3,779,749 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Investment in real estate accumulated depreciation (in Dollars) | $ 390,065 | $ 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 | 174,404,915 | 186,910,407 |
Common stock, shares outstanding | 174,404,915 | 186,910,407 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues: | ||||
Room | $ 221,978 | $ 213,831 | $ 628,982 | $ 552,645 |
Other | 18,577 | 18,053 | 56,299 | 48,928 |
Total revenue | 240,555 | 231,884 | 685,281 | 601,573 |
Expenses: | ||||
Operating | 59,024 | 58,617 | 170,781 | 152,020 |
Hotel administrative | 17,684 | 16,627 | 52,248 | 43,610 |
Sales and marketing | 18,524 | 18,441 | 53,502 | 47,798 |
Utilities | 9,505 | 9,587 | 25,222 | 22,965 |
Repair and maintenance | 9,245 | 9,073 | 27,771 | 23,943 |
Franchise fees | 10,360 | 9,762 | 29,069 | 25,137 |
Management fees | 8,491 | 8,083 | 24,081 | 21,074 |
Property taxes, insurance and other | 10,450 | 11,121 | 33,727 | 29,477 |
Ground lease | 2,496 | 2,489 | 7,504 | 5,850 |
General and administrative | 5,175 | 5,627 | 14,421 | 14,774 |
Transaction and listing costs | 842 | 707 | 7,891 | 4,593 |
Series B convertible preferred share expense | 0 | 0 | 0 | 117,133 |
Loss on impairment of depreciable real estate assets | 0 | 8,600 | 0 | 8,600 |
Depreciation | 32,351 | 31,095 | 94,205 | 81,408 |
Total expenses | 184,147 | 189,829 | 540,422 | 598,382 |
Operating income | 56,408 | 42,055 | 144,859 | 3,191 |
Interest and other expense, net | (9,302) | (6,340) | (24,265) | (17,197) |
Gain on sale of real estate | 0 | 0 | 15,358 | 0 |
Income (loss) before income taxes | 47,106 | 35,715 | 135,952 | (14,006) |
Income tax expense | (138) | (553) | (872) | (1,495) |
Net income (loss) | 46,968 | 35,162 | 135,080 | (15,501) |
Other comprehensive income (loss): | ||||
Unrealized gain (loss) on interest rate derivatives | (5,978) | 757 | (6,437) | 311 |
Cash flow hedge losses reclassified to earnings | 0 | 0 | 785 | 0 |
Comprehensive income (loss) | $ 40,990 | $ 35,919 | $ 129,428 | $ (15,190) |
Basic and diluted net income (loss) per common share (in Dollars per share) | $ 0.27 | $ 0.19 | $ 0.74 | $ (0.09) |
Weighted average common shares outstanding - basic and diluted (in Shares) | 175,069 | 186,910 | 182,247 | 166,292 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 135,080 | $ (15,501) |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | ||
Series B convertible preferred share expense | 0 | 117,133 |
Depreciation | 94,205 | 81,408 |
Loss on impairment of depreciable real estate assets | 0 | 8,600 |
Gain on sale of real estate | (15,358) | 0 |
Other non-cash expenses, net | 4,998 | 1,133 |
Changes in operating assets and liabilities, net of amounts acquired or assumed with acquisitions: | ||
Increase in due from third party managers, net | (15,520) | (9,444) |
Increase in other assets, net | (4,632) | (4,086) |
Increase in accounts payable and other liabilities | 6,389 | 4,873 |
Net cash provided by operating activities | 205,162 | 184,116 |
Cash flows from investing activities: | ||
Acquisition of hotel properties, net | (213,189) | 0 |
Deposits and other disbursements for potential acquisitions | (1,130) | 0 |
Capital improvements and development costs | (40,054) | (48,239) |
Decrease in capital improvement reserves | 7,351 | 2,368 |
Net proceeds from sale of real estate | 205,154 | 5,648 |
Net cash used in investing activities | (41,868) | (40,223) |
Cash flows from financing activities: | ||
Repurchases of common shares | (236,718) | (2,349) |
Distributions paid to common shareholders | (176,814) | (169,862) |
Payments on extinguished credit facilities | 0 | (129,490) |
Net proceeds from existing credit facility | 308,900 | 175,000 |
Proceeds from mortgage debt | 38,000 | 27,000 |
Payments of mortgage debt | (89,547) | (57,289) |
Financing costs | (7,010) | (5,005) |
Net cash used in financing activities | (163,189) | (161,995) |
Increase (decrease) in cash and cash equivalents | 105 | (18,102) |
Cash and cash equivalents, beginning of period | 0 | 18,102 |
Cash and cash equivalents, end of period | 105 | 0 |
Supplemental cash flow information: | ||
Interest paid | 25,230 | 21,528 |
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 |
Accrued distribution to common shareholders | $ 17,440 | $ 0 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 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. Although the Company has interests in potential variable interest entities through its purchase commitments, it is not the primary beneficiary as the Company does not have any elements of power in the decision making process of these entities, and therefore does not consolidate the entities. As of September 30, 2015, the Company owned 177 hotels with an aggregate of 22,782 rooms located in 32 states. On May 18, 2015, the Company’s common shares were listed and began trading on the New York Stock Exchange (“NYSE”) under the ticker symbol “APLE” (the “Listing”). In connection with the Listing, effective May 18, 2015, the Company completed a 50% reverse share split. As a result of the reverse share split, every two common shares were converted into one common share. Except where the context indicates otherwise, all common shares and per share amounts for all periods presented have been adjusted to reflect the reverse share split. See Note 8 for additional information about the reverse share split. 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 and nine months ended September 30, 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 income (loss), shareholders’ equity or cash flows. Except where the context indicates otherwise, all common shares and per share amounts for all periods presented have been adjusted to reflect the 50% reverse share split. Comprehensive Income (Loss) Comprehensive income (loss) includes net income (loss) and other comprehensive income (loss), which is comprised of unrealized gains and losses, and other adjustments 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 both the three and nine months ended September 30, 2015 and 2014. As a result, basic and diluted 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 5.8 million additional common shares outstanding. Recent Accounting Standards In September 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-16, Simplifying the ccounting for Measurement-Period Adjustments, In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs |
Mergers with Apple REIT Seven,
Mergers with Apple REIT Seven, Inc. and Apple REIT Eight, Inc. | 9 Months Ended |
Sep. 30, 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 90 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 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 12.08552 common shares of the Company, or approximately 5.8 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 $20.20 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 listing costs in the Company’s consolidated statements of operations. In connection with these activities, the Company has incurred approximately $7.5 million in total merger costs (including approximately $1.3 million of costs incurred to defend the ongoing purported class action related to the A7 and A8 mergers discussed in Note 10, which is net of approximately $0.6 million of reimbursements received from the Company’s directors and officers insurance carriers), of which approximately $1.0 million and $3.5 million, respectively, were incurred during the nine months ended September 30, 2015 and 2014. During the first nine months 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 September 30, 2014, included in the Company’s consolidated statements of operations were approximately $282.7 million and $63.7 million, respectively. The following unaudited pro forma information for the three and nine month periods ended September 30, 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Total revenue $ 240,555 $ 231,884 $ 685,281 $ 662,421 Net income $ 47,087 $ 35,612 $ 136,091 $ 106,370 Net income per share - basic and diluted $ 0.27 $ 0.19 $ 0.75 $ 0.57 Weighted average common shares outstanding - basic and diluted 175,069 186,910 182,247 186,910 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 $0.1 million and $0.5 million for the three months ended September 30, 2015 and 2014 and approximately $1.0 million and $3.5 million for the nine months ended September 30, 2015 and 2014. The expense related to the conversion of the Series B convertible preferred shares was approximately $117.1 million for the nine months ended September 30, 2014. 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 sold one hotel acquired with the A7 and A8 mergers on June 1, 2015; therefore, the pro forma results of the Company for the nine months ended September 30, 2015 only include operations of these hotels through the respective dates of their sale. |
Investment in Real Estate
Investment in Real Estate | 9 Months Ended |
Sep. 30, 2015 | |
Real Estate [Abstract] | |
Real Estate Disclosure [Text Block] | 3. Investment in Real Estate The Company acquired five hotels during the first nine months of 2015. The following table sets forth the location, brand, manager, date acquired, number of rooms and gross purchase price for each hotel. All dollar amounts are in thousands. City State Brand Manager Date Acquired Rooms Gross Purchase Price Fort Lauderdale FL Hampton Inn LBA 6/23/2015 156 $ 23,000 Cypress CA Hampton Inn Dimension 6/29/2015 110 19,800 Burbank CA SpringHill Suites Marriott 7/13/2015 170 60,000 Burbank CA Courtyard Huntington 8/11/2015 190 54,000 San Diego CA Courtyard Huntington 9/1/2015 245 56,000 871 $ 212,800 At the date of purchase, the purchase price for each of these properties was funded through the Company’s credit facility with availability provided primarily from the proceeds from the sale of properties discussed in Note 4. For the five hotels acquired during the first nine months of 2015, the amount of revenue and operating income (excluding acquisition related transaction costs totaling $0.4 million) included in the Company’s consolidated statements of operations from the acquisition date to September 30, 2015 was approximately $6.7 million and $1.6 million, respectively. The Company leases all of its hotels to its wholly-owned taxable REIT subsidiary (or a subsidiary thereof) under master hotel lease agreements. No goodwill was recorded in connection with any of the acquisitions. The Company’s total investment in real estate consisted of the following (in thousands): September 30, December 31, 2015 2014 Land $ 560,205 $ 520,406 Building and Improvements 3,193,708 3,010,314 Furniture, Fixtures and Equipment 279,347 251,170 Franchise Fees 8,287 7,490 4,041,547 3,789,380 Less Accumulated Depreciation (390,065 ) (296,559 ) Investment in Real Estate, net $ 3,651,482 $ 3,492,821 As of September 30, 2015, the Company owned 177 hotels with an aggregate of 22,782 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. During the three and nine months ended September 30, 2014, the Company recorded an impairment loss of approximately $8.6 million on three of 22 properties identified for potential sale during this period, of which as further discussed in Note 4, 19 of these properties were sold during 2015. Due to the change in the anticipated holding period of the assets, the undiscounted cash flows generated by these three properties was estimated to be less than their carrying values; therefore the Company recorded an impairment loss to adjust the basis of these individual properties to their estimated fair values. The estimated fair values of these properties were based on third party estimates and discounted cash flow analyses, using expected future cash flows, management’s estimates of discount rates, estimates of market capitalization rates and other market considerations. There was not an impairment loss during the nine months ended September 30, 2015. As of September 30, 2015, the Company had outstanding contracts for the potential purchase of six additional hotels for a total purchase price of $123.1 million. Of these six hotels, four are under construction and are planned to be completed and opened for business over the next six to 21 months from September 30, 2015, at which time closing on these hotels is expected to occur. Closing on the two remaining hotels, which are already in operation, occurred on October 16, 2015. Although the Company is working towards acquiring the four hotels under construction, 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 location, brand, date of purchase contract, expected number of rooms, refundable (if the seller does not meet its obligations under the contract) contract deposits paid, and gross purchase price for each of the contracts outstanding at September 30, 2015. All dollar amounts are in thousands. Location Brand Date of Purchase Contract Rooms Refundable Deposits Gross Purchase Price Operating Syracuse, NY (a) Courtyard 7/21/2015 102 $ 250 $ 23,940 Syracuse, NY (a) Residence Inn 7/21/2015 78 250 18,060 Under development (b) Atlanta, GA Home2 Suites 5/5/2015 128 300 24,600 Birmingham, AL (c)(d) Home2 Suites 8/28/2015 105 1 19,219 Birmingham, AL (c)(d) Hilton Garden Inn 8/28/2015 105 1 19,219 Fort Worth, TX (d) Courtyard 8/28/2015 124 3 18,034 642 $ 805 $ 123,072 ___________________ (a) The Courtyard and Residence Inn hotels in Syracuse, NY are part of an adjoining two-hotel complex located on the same site. Closing on these hotels occurred on October 16, 2015. At closing, the Company assumed approximately $22.4 million in mortgage debt (secured jointly by the two hotels). 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 brands. Assuming all conditions to closing are met, the purchases of these hotels are expected to close over the next six to 21 months from September 30, 2015. (c) The Home2 Suites and Hilton Garden Inn hotels in Birmingham, AL are part of an adjoining two-hotel complex located on the same site. (d) If the seller meets all of the conditions to closing, the Company is obligated to specifically perform under the contract. As the property is under construction, at this time, the seller has not met all of the conditions to closing. As there can be no assurance that all conditions to closing will be satisfied, the Company includes deposits paid for hotels under contract in other assets, net in the Company’s consolidated balance sheets, and in deposits and other disbursements for potential acquisitions in the Company’s consolidated statements of cash flows. The purchase price for the Syracuse Courtyard and Residence Inn hotels, net of debt assumed, was funded through the Company’s credit facility and it is anticipated that the purchase price for the remaining outstanding contracts will be funded similarly. On April 23, 2015, the Company executed a contract for the potential acquisition of a Homewood Suites located in Hartford, Connecticut. In May 2015, this contract was terminated. The gross purchase price for the 116-room hotel was $18.5 million. In connection with the termination of this contract, the initial deposit of $500,000 was repaid to the Company. |
Dispositions
Dispositions | 9 Months Ended |
Sep. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 4. Dispositions During the nine months ended September 30, 2015, the Company sold 19 properties in two separate transactions for a total sales price of approximately $208.5 million. In conjunction with these transactions, the Company recorded a gain on sale of approximately $15.4 million, which is included in the Company’s consolidated statements of operations for the nine months ended September 30, 2015. The proceeds from the sale transactions were used primarily to repay the outstanding balance under the Company’s revolving credit facility, with the intent to use the increased availability to fund hotel acquisitions, hotel renovations and other general corporate purposes. The following table lists the properties sold: City State Brand Date Acquired Date Sold Rooms Huntsville AL TownePlace Suites 3/1/2014 2/26/2015 86 Troy AL Courtyard 6/18/2009 2/26/2015 90 Troy AL Hampton Inn 3/1/2014 2/26/2015 82 Rogers AR Fairfield Inn & Suites 3/1/2014 2/26/2015 99 Pueblo CO Hampton Inn & Suites 10/31/2008 2/26/2015 81 Port Wentworth GA Hampton Inn 3/1/2014 2/26/2015 106 Bowling Green KY Hampton Inn 3/1/2014 2/26/2015 130 Alexandria LA Courtyard 9/15/2010 2/26/2015 96 West Monroe LA Hilton Garden Inn 7/30/2010 2/26/2015 134 Concord NC Hampton Inn 3/1/2014 2/26/2015 101 Dunn NC Hampton Inn 3/1/2014 2/26/2015 120 Jacksonville NC TownePlace Suites 2/16/2010 2/26/2015 86 Matthews NC Hampton Inn 3/1/2014 2/26/2015 91 Cincinnati OH Homewood Suites 3/1/2014 2/26/2015 76 Tulsa OK Hampton Inn & Suites 3/1/2014 2/26/2015 102 Jackson TN Courtyard 12/16/2008 2/26/2015 94 Brownsville TX Courtyard 3/1/2014 2/26/2015 90 San Antonio TX TownePlace Suites 3/1/2014 2/26/2015 123 Tupelo MS Hampton Inn 3/1/2014 6/1/2015 96 Total 1,883 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 on sale of approximately $15.6 million. The 18 hotels had a total carrying value of approximately $188.3 million at the time of the sale. 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. 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 September 30, 2015. Also, during the second quarter of 2015 the Company entered into a contract to sell and completed the sale of the Hampton Inn located in Tupelo, Mississippi for a sales price of approximately $2.1 million, resulting in a loss of approximately $0.3 million. 13 of the 19 hotels sold 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 respective dates of sale for these hotels. The Company’s consolidated statements of operations include operating income of approximately $1.2 million for the three months ended September 30, 2014 and approximately $2.0 million and $6.7 million for the nine months ended September 30, 2015 and 2014 relating to the 19 hotels for the respective periods of ownership (the consolidated statements of operations for the three months ended September 30, 2015 did not contain any operating activity from these hotels, as they were sold prior to the beginning of the period). 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 and nine months ended September 30, 2015 and 2014. There are no assets classified as held for sale as of September 30, 2015. |
Credit Facility and Mortgage De
Credit Facility and Mortgage Debt | 9 Months Ended |
Sep. 30, 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 credit facility (comprised of a $245 million revolving credit facility and a $100 million term loan). On May 18, 2015, concurrent with the Listing, the Company entered into an amendment and restatement of the $345 million credit facility, increasing the borrowing capacity to $965 million and extending the maturity dates. The $965 million credit facility is comprised of (a) a $540 million revolving credit facility with an initial maturity date of May 18, 2019, and (b) a $425 million term loan facility with a maturity date of May 18, 2020, consisting of three term loans, of which $212.5 million was funded on May 18, 2015, $110.0 million was funded on July 1, 2015, and $102.5 million was funded on August 14, 2015. Subject to certain conditions including covenant compliance and additional fees, the revolving credit facility maturity date may be extended one year and the amount of the total credit facility may be increased from $965 million to $1.25 billion. The terms of the unsecured $965 million credit facility are similar to the $345 million credit facility. The Company may make voluntary prepayments in whole or in part, at any time. Interest payments on the $965 million credit facility are due monthly and the interest rate, which decreased slightly and, subject to certain exceptions, is equal to an annual rate of the one-month LIBOR (the London Inter-Bank Offered Rate for a one-month term) plus a margin ranging from 1.50% to 2.30%, depending upon the Company’s leverage ratio, as calculated under the terms of the credit agreement. In conjunction with two of the term loans, including the $212.5 million term loan and $110.0 million term loan, the Company entered into interest rate swap agreements for the same notional amounts and maturities as these loans. The interest rate swap agreements effectively provide the Company with payment requirements equal to a fixed interest rate on the variable rate debt (subject to adjustment based on the Company’s leverage ratio) through the maturity in May 2020 (see Note 6 for more information on the interest rate swap agreements). The Company is also required to pay quarterly an unused facility fee at an annual rate of 0.20% or 0.30% on the unused portion of the $540 million revolving credit facility, based on the amount of borrowings outstanding during the quarter. As of September 30, 2015, the credit facility had an outstanding principal balance of approximately $500.5 million, including $425.0 million in term loans with an effective annual interest rate of approximately 2.76% (including the effect of the interest rate swaps on $322.5 million of this debt resulting in an annual fixed interest rate of approximately 3.10% and subject to adjustment based on the Company’s leverage ratio) and approximately $75.5 million outstanding on the $540 million revolving credit facility with an annual variable interest rate of approximately 1.74%. As of December 31, 2014, the credit facility had an outstanding principal balance of $191.6 million, including a $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%. Similar to the $345 million credit facility, the $965 million credit facility contains mandatory prepayment requirements, customary affirmative covenants, negative covenants and events of default. The credit agreement requires that the Company comply with various covenants, including covenants restricting liens, indebtedness, investments, mergers, asset sales and the payment of certain dividends. In addition, the credit facility contains covenants restricting the level of certain investments and the following quarterly financial covenants (capitalized terms are defined in the credit agreement). · A ratio of Consolidated Total Indebtedness to Consolidated EBITDA of not more than 6.00 to 1.00 (subject to a higher amount in certain circumstances); · A ratio of Consolidated Secured Indebtedness to Consolidated Total Assets of not more than 45%; · A minimum Consolidated Tangible Net Worth of $2.3 billion (plus 75% of the Net Cash Proceeds from issuances and sales of Equity Interests occurring after the Closing Date, subject to adjustment, less the lesser of (a) 75% of Restricted Payments for the tender, redemption and/or other purchases of its common stock made by the Company after the Closing Date and (b) $375 million); · A ratio of Adjusted Consolidated EBITDA to Consolidated Fixed Charges of not less than 1.50 to 1.00 for the trailing four full quarters; · A ratio of Unencumbered Adjusted NOI to Consolidated Implied Interest Expense for Consolidated Unsecured Indebtedness of not less than 2.00 to 1.00 for the trailing four full quarters; · A ratio of Consolidated Unsecured Indebtedness to Unencumbered Asset Value of not more than 60% (subject to a higher level in certain circumstances); · A ratio of Consolidated Secured Recourse Indebtedness to Consolidated Total Assets of not more than 10%; and · Restricted Payments (including distributions and share repurchases), net of any proceeds from a dividend reinvestment plan and excluding Restricted Payments for the tender, redemption and/or other purchases of its common stock in an amount not to exceed $700 million in the aggregate, cannot exceed 100% of Funds From Operations for the fiscal year ending December 31, 2015, reducing to 95% of Funds from Operations for all fiscal years thereafter, unless the Company is required to distribute more to meet REIT requirements. The Company was in compliance with the applicable covenants at September 30, 2015. Mortgage Debt As of September 30, 2015, the Company had approximately $461.7 million in outstanding property level debt secured by 39 properties, with maturity dates ranging from October 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 September 30, 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 Origination Date Maturity Date Principal Assumed or Originated Outstanding balance as of September 30, 2015 Outstanding balance as of December 31, 2014 Overland Park, KS Residence Inn 5.74 % 3/1/2014 (2 ) $ 6,018 $ 0 $ 5,833 Concord, NC Hampton Inn 6.10 % 3/1/2014 (3 ) 4,718 0 4,644 Westford, MA Residence Inn 5.30 % (4 ) 3/1/2014 (5 ) 6,530 0 6,397 Dallas, TX Hilton 6.63 % 5/17/2011 (6 ) 20,988 0 18,913 Tupelo, MS Hampton Inn 5.90 % 3/1/2014 (7 ) 3,124 0 2,977 Rogers, AR Hampton Inn 5.20 % 8/31/2010 (8 ) 8,337 0 7,593 St. Louis, MO Hampton Inn 5.30 % 8/31/2010 (8 ) 13,915 0 12,692 Kansas City, MO Hampton Inn 5.45 % 8/31/2010 (9 ) 6,517 0 5,961 Kansas City, MO Residence Inn 5.74 % 3/1/2014 (10 ) 10,602 0 10,420 Fayetteville, NC Residence Inn 5.14 % 3/1/2014 (11 ) 6,545 0 6,410 Allen, TX Hilton Garden Inn 5.37 % 10/31/2008 (12 ) 10,787 9,380 9,559 Austin, TX Homewood Suites 5.99 % 4/14/2009 3/1/2016 7,556 6,314 6,486 Austin, TX Hampton Inn 5.95 % 4/14/2009 3/1/2016 7,553 6,306 6,478 Houston, TX Residence Inn 5.71 % 3/1/2014 3/1/2016 9,930 9,573 9,745 Hilton Head, SC Hilton Garden Inn 6.29 % 3/1/2014 4/11/2016 5,557 5,273 5,410 Round Rock, TX Hampton Inn 5.95 % 3/6/2009 5/1/2016 4,175 3,489 3,583 Highlands Ranch, CO Residence Inn 5.94 % 3/1/2014 6/1/2016 10,494 10,172 10,327 Texarkana, TX Hampton Inn & Suites 6.90 % 1/31/2011 7/8/2016 4,954 4,601 4,665 Bristol, VA Courtyard 6.59 % 11/7/2008 8/1/2016 9,767 8,792 8,922 Virginia Beach, VA Courtyard 6.02 % 3/1/2014 11/11/2016 13,931 13,475 13,695 Virginia Beach, VA Courtyard 6.02 % 3/1/2014 11/11/2016 16,813 16,263 16,529 Charlottesville, VA Courtyard 6.02 % 3/1/2014 11/11/2016 14,892 14,405 14,640 Carolina Beach, NC Courtyard 6.02 % 3/1/2014 11/11/2016 12,009 11,617 11,806 Winston-Salem, NC Courtyard 5.94 % 3/1/2014 12/8/2016 7,458 7,254 7,352 Lewisville, TX (13) Hilton Garden Inn 0.00 % 10/16/2008 12/31/2016 3,750 2,000 2,000 Oceanside, CA Residence Inn 4.24 % (4 ) 3/1/2014 1/13/2017 15,662 15,168 15,402 Burbank, CA Residence Inn 4.24 % (4 ) 3/1/2014 1/13/2017 23,493 22,752 23,103 Savannah, GA Hilton Garden Inn 5.87 % 3/1/2014 2/1/2017 4,977 4,730 4,849 Greenville, SC Residence Inn 6.03 % 3/1/2014 2/8/2017 6,012 5,839 5,922 Birmingham, AL Homewood Suites 6.03 % 3/1/2014 2/8/2017 10,908 10,594 10,745 Jacksonville, FL Homewood Suites 6.03 % 3/1/2014 2/8/2017 15,856 15,399 15,619 Irving, TX Homewood Suites 5.83 % 12/29/2010 4/11/2017 6,052 5,305 5,437 Duncanville, TX Hilton Garden Inn 5.88 % 10/21/2008 5/11/2017 13,966 12,468 12,661 Grapevine, TX Hilton Garden Inn 4.89 % 8/29/2012 9/1/2022 11,810 11,055 11,254 Collegeville/Philadelphia, PA Courtyard 4.89 % 8/30/2012 9/1/2022 12,650 11,841 12,055 Hattiesburg, MS Courtyard 5.00 % 3/1/2014 9/1/2022 5,732 5,529 5,627 Rancho Bernardo, CA Courtyard 5.00 % 3/1/2014 9/1/2022 15,060 14,525 14,782 Kirkland, WA Courtyard 5.00 % 3/1/2014 9/1/2022 12,145 11,714 11,921 Seattle, WA Residence Inn 4.96 % 3/1/2014 9/1/2022 28,269 27,258 27,744 Anchorage, AK Embassy Suites 4.97 % 9/13/2012 10/1/2022 23,230 21,807 22,193 Somerset, NJ Courtyard 4.73 % 3/1/2014 10/6/2022 8,750 8,429 8,584 Tukwila, WA Homewood Suites 4.73 % 3/1/2014 10/6/2022 9,431 9,085 9,251 Prattville, AL Courtyard 4.12 % 3/1/2014 2/6/2023 6,596 6,338 6,462 Huntsville, AL Homewood Suites 4.12 % 3/1/2014 2/6/2023 8,306 7,981 8,137 San Diego, CA Residence Inn 3.97 % 3/1/2014 3/6/2023 18,600 17,862 18,216 Miami, FL Homewood Suites 4.02 % 3/1/2014 4/1/2023 16,677 16,023 16,337 New Orleans, LA Homewood Suites 4.36 % 7/17/2014 8/11/2024 27,000 26,358 26,806 Westford, MA Residence Inn 4.28 % 3/18/2015 4/11/2025 (5 ) 10,000 9,910 0 Dallas, TX Hilton 3.95 % 5/22/2015 6/1/2025 (6 ) 28,000 27,877 0 Malvern/Philadelphia, PA Courtyard 6.50 % 11/30/2010 10/1/2032 (14 ) 7,894 6,969 7,132 $ 573,996 $ 461,730 $ 513,276 Unamortized fair value adjustment of assumed debt 2,016 4,694 Total $ 463,746 $ 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) On April 6, 2015, the Company repaid in full the existing mortgage loan, and on May 22, 2015 the Company originated new debt secured by this hotel. (7) Property securing loan was sold on June 1, 2015. Debt was extinguished prior to the sale on May 22, 2015. (8) Loans were repaid in full on June 1, 2015. (9) Loan was repaid in full on July 1, 2015. (10) Loan was repaid in full on August 3, 2015. (11) Loan was repaid in full on September 1, 2015. (12) Loan was repaid in full on October 12, 2015. (13) Unsecured loan. (14) 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 Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | 6. Fair Value of Financial Instruments Except as described below, the carrying value of the Company’s financial instruments approximates fair value due to the short-term nature of these financial instruments. Credit Facility and Mortgage Debt The Company estimates the fair value of its debt by discounting the future cash flows of each instrument at estimated market rates consistent with the maturity of a debt obligation with similar credit terms and credit characteristics, which are Level 3 inputs under the fair value hierarchy. Market rates take into consideration general market conditions and maturity. As of September 30, 2015, the carrying value and estimated fair value of the Company’s debt was approximately $964.2 million and $968.8 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. 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. The swaps are designed to effectively fix the interest payments on variable rate debt instruments. These instruments are recorded at fair value and are included in accounts payable and other liabilities in the Company’s consolidated balance sheets. The fair values of the Company’s interest rate swap agreements are determined using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts, which is considered a Level 2 measurement under the fair value hierarchy. The variable cash receipts are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The following is a summary of the notional amounts, assumption or origination dates, maturity dates and fair values (liabilities) of the interest rate swap agreements outstanding as of September 30, 2015 and December 31, 2014 (in thousands): Notional amount at Assumption or Fair value Hedge Type September 30, 2015 Origination Date Maturity date September 30, 2015 December 31, 2014 Non-designated hedge (1) $ 0 3/1/2014 10/1/2015 $ 0 $ (74 ) Non-designated hedge (2) 0 3/1/2014 1/13/2015 0 (11 ) Non-designated hedge (3) 37,920 3/1/2014 1/13/2017 (285 ) (183 ) Non-designated hedge (4) 0 3/6/2014 3/1/2019 0 (511 ) Cash flow hedge 212,500 5/21/2015 5/18/2020 (3,930 ) 0 Cash flow hedge 110,000 7/2/2015 5/18/2020 (2,233 ) 0 $ (6,448 ) $ (779 ) ________ (1) 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. (2) Swap matured during the first quarter of 2015. (3) Effective date of the forward interest rate swap agreement was January 13, 2015, the same date the previous swap agreement matured. (4) 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, the swap was no longer designated as a cash flow hedge. The swap was terminated on May 18, 2015. The Company assesses, both at inception and on an ongoing basis, the effectiveness of its qualifying cash flow hedges. For swaps designated as cash flow hedges, the changes in fair value on the effective portion are recorded to accumulated other comprehensive income (loss), a component of shareholders’ equity in the Company’s consolidated balance sheets. Changes in fair value on the ineffective portion of all designated hedges are recorded to interest and other expense, net in the Company’s consolidated statements of operations. For swaps not designated as cash flow hedges, the changes in fair value are recorded to interest and other expense, net in the Company’s consolidated statements of operations. Other than the fair value changes associated with the cash flow hedge for which hedge accounting was discontinued during the first half of 2015 as discussed below, fair value changes for derivatives not in qualifying hedge relationships for the three and nine months ended September 30, 2015 and 2014 were not material. To adjust qualifying cash flow hedges to their fair value and recognize the impact of hedge accounting, the Company recorded unrealized gains (losses) of approximately $(6.0) million and $0.8 million during the three months ended September 30, 2015 and 2014, and approximately $(6.4) million and $0.3 million during the nine months ended September 30, 2015 and 2014, respectively to other comprehensive income (loss). During the nine months ended September 30, 2015, the Company reclassified $0.8 million of losses from accumulated other comprehensive loss to earnings which was associated with the $100 million terminated swap agreement as discussed below. There were no reclassifications during the prior year. Amounts recorded to accumulated other comprehensive loss totaled approximately $6.2 million and $0.5 million as of September 30, 2015 and December 31, 2014, respectively. Terminated Interest Rate Swap On March 6, 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 fixed the interest rate on the $100 million term loan (subject to adjustment based on the Company’s leverage ratio) through maturity. Under the terms of this interest rate swap, the Company paid a fixed interest rate of 1.58% and received a floating rate of interest equal to the one month LIBOR. The interest rate swap agreement was scheduled to mature in March 2019. At inception, the interest rate swap was designated by the Company as an effective cash flow hedge for accounting purposes. 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 shareholders’ equity in the Company’s consolidated balance sheets, which totaled $0.8 million as of March 2, 2015. In the first quarter of 2015, the Company announced its intent to pursue a listing of its common shares on a national securities exchange and to enter into a modified 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 subsequent changes in fair value were recorded to interest and other expense, net in the Company’s consolidated statement of operations. In May 2015, concurrent with the Listing, the Company amended and restated its credit facility, repaid the $100 million term loan and terminated the $100 million interest rate swap, resulting in a cash settlement totaling approximately $1.1 million, the fair value at the time of settlement. As a result, the Company realized a loss of approximately $1.1 million during the nine months ended September 30, 2015 related to the swap termination, of which approximately $0.8 million previously recorded to accumulated other comprehensive loss ($0.3 million was recorded during the first quarter of 2015 and $0.5 million was recorded during 2014) was reclassified as an increase to transaction and listing costs with the remaining amount recorded to interest and other expense, net in the Company’s consolidated statements of operations. Outstanding Interest Rate Swaps In May 2015 and July 2015, respectively, the Company entered into interest rate swap agreements with a commercial bank for the same notional amounts and maturities as its $212.5 million term loan and its $110.0 million term loan (see Note 5 for more information on the term loans). Under the terms of the $212.5 million and $110.0 million interest rate swaps, the Company pays a fixed interest rate of 1.58% and 1.62% on each respective swap, and receives a floating rate of interest equal to the one month LIBOR, which as of September 30, 2015 resulted in annual fixed interest rates of approximately 3.08% and 3.12% for each respective loan. These swaps have been designated as cash flow hedges for accounting purposes. From inception of the respective swaps through September 30, 2015, each swap was a fully effective hedge, and therefore the changes in 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. |
Related Parties
Related Parties | 9 Months Ended |
Sep. 30, 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 September 30, 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 nine months ended September 30, 2015 and 2014 totaled approximately $1.9 million and $0.8 million, and are recorded as a reduction to general and administrative expenses in the Company’s consolidated statements of operations. The increase in 2015 was primarily due to Apple Ten reaching the next fee tier under its advisory agreement due to improved results of operations of Apple Ten during this period. 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 and its advisors, 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 nine months ended September 30, 2015 and 2014 totaled approximately $2.1 million and $1.8 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 September 30, 2015 and December 31, 2014 totaled approximately $0.8 million and $1.0 million, respectively, 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 | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 8. Shareholders’ Equity Listing on the New York Stock Exchange On May 18, 2015, the Company’s common shares were listed and began trading on the NYSE under the ticker symbol “APLE”. Reverse Share Split In connection with the Listing, effective May 18, 2015, the Company completed a 50% reverse share split. The reverse share split was 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. As a result of the reverse share split, every two common shares were converted into one common share, reducing the number of issued and outstanding common shares from 372.2 million to 186.1 million on the effective date. The common shares have the same respective voting rights, preferences and relative, participating, optional or other rights, and qualifications, limitations or restrictions as set forth in the amended and restated articles of incorporation in effect immediately prior to the effective date of the reverse share split. The reverse share split did not have any effect on the total number of common shares the Company is authorized to issue under its amended and restated articles of incorporation. Except where the context indicates otherwise, all common shares and per share amounts for all periods presented have been adjusted to reflect the reverse share split. Tender Offer In connection with the Listing, the Board of Directors approved a modified "Dutch Auction" tender offer to purchase up to $200 million in value of the Company’s common shares (the “Tender Offer”), which commenced on May 18, 2015 and expired on June 22, 2015. Upon expiration, the Company accepted for purchase approximately 10.5 million of its common shares, at a purchase price of $19.00 per common share, for an aggregate purchase price of approximately $200 million, excluding fees and expenses related to the Tender Offer. The total common shares accepted for purchase represented approximately 97% of the common shares properly tendered and not properly withdrawn at the purchase price of $19.00 per common share. Payment for shares accepted for purchase occurred on June 24, 2015, and the shares purchased were retired. The Company has incurred approximately $0.6 million in costs related to the Tender Offer which are recorded as a reduction to shareholders’ equity in the Company’s consolidated balance sheets. The Company funded the Tender Offer and all related costs primarily from borrowings under its credit facility. Share Repurchase Program The Company’s Board of Directors has authorized a share repurchase program of up to $500 million. On July 8, 2015, the Company established a written trading plan (“Plan”) that provides for share repurchases in open market transactions that is intended to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. The timing of share repurchases and the number of common shares to be repurchased under the Plan will depend upon prevailing market conditions, regulatory requirements and other factors. The Plan does not obligate the Company to repurchase any specific number of shares and may be suspended at any time at its discretion. Since implementation through September 30, 2015, the Company purchased approximately 1.2 million of its common shares under the Plan, at a weighted-average market purchase price of approximately $17.59 per common share, for an aggregate purchase price of approximately $21.2 million. Purchases under the Plan have been funded, and the Company intends to fund future purchases, with availability under its credit facility. Distributions For the three months ended September 30, 2015 and 2014, the Company paid distributions of $0.30 and $0.33 per common share for a total of $52.6 million and $62.3 million, respectively. For the nine months ended September 30, 2015 and 2014, the Company paid distributions of $0.97 and $1.05 per common share for a total of $176.8 million and $169.9 million, respectively. Additionally, in September 2015, the Company declared a monthly distribution of $0.10 per common share for shareholders of record as of September 30, 2015, which was paid in October 2015. The distribution of $17.4 million was recorded as a payable as of September 30, 2015 and included in accounts payable and other liabilities in the Company’s consolidated balance sheets. The Company’s current annual distribution rate, payable monthly, is $1.20 per common share. As contemplated by the A7 and A8 mergers, the Board of Directors reduced the annual distribution rate from $1.6605 per common share to $1.32 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 $1.32 per common share to $1.36 per common share. On April 23, 2015, the Company’s Board of Directors, in anticipation of the Listing, authorized a monthly distribution at an annual rate of $1.20 per common share. This new distribution rate was effective with the June 2015 distribution. Terminated Share Redemption Program In October 2014, the Board of Directors approved reinstating the Company’s share redemption program on a limited basis. The Company did not redeem any common shares under this program during the three months ended September 30, 2015. During the nine months ended September 30, 2015, the Company redeemed approximately 0.8 million common shares at a price of $18.40 per common share, or a total of approximately $14.9 million. All eligible redemption requests were fulfilled. No common shares were redeemed under the program during 2014. Following the April 2015 redemption, the Board of Directors approved the termination of the share redemption program. Terminated Dividend Reinvestment Plan In April 2015, the Board of Directors approved the termination of the Company’s Dividend Reinvestment Plan. |
Compensation Plans
Compensation Plans | 9 Months Ended |
Sep. 30, 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 executive 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 incentive goals are equally weighted and are based on targeted Adjusted EBITDA, Modified Funds from Operations per share, Comparable Hotel RevPAR growth, and relative share price performance. The range of aggregate payouts under the 2015 Incentive Plan is $0 - $13 million. Based on performance through September 30, 2015, the Company has accrued approximately $5.8 million as a liability for potential executive bonus payments under the 2015 Incentive Plan, which is included in accounts payable and other liabilities in the Company’s consolidated balance sheets as of September 30, 2015. Executive compensation expense recognized by the Company under the 2015 Incentive Plan is included in general and administrative expense and totaled approximately $2.6 million and $5.8 million for the three and nine months ended September 30, 2015. Approximately one-third of awards under the 2015 Incentive Plan, if any, will be paid in cash, and two-thirds will be issued in restricted stock under the 2014 Omnibus Incentive Plan, 50% of which would vest at the end of 2015 and 50% of which would vest at the end of 2016. During 2014, a comparable executive incentive plan was approved by the Board of Directors in May 2014 (“2014 Incentive Plan”) that was effective March 1, 2014, and the Company recorded approximately $2.2 million and $5.1 million in general and administrative expense in the Company’s consolidated statements of operations for the three and nine months ended September 30, 2014. |
Legal Proceedings
Legal Proceedings | 9 Months Ended |
Sep. 30, 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 and others were parties to a consolidated matter called In re Apple REITs Litigation . 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. 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. The parties reached an agreement in principle to settle the remaining claims. The Court held a Fairness Hearing on September 14, 2015 and approved the settlement by order dated September 15, 2015 (the “Order”). The settlement is among the remaining Defendants (the former Apple REIT Nine, Inc. board of directors) and certain former Apple REIT Nine, Inc. shareholders and does not directly involve the Company. The settlement as approved does not impact the Company’s financial position. A former shareholder who objected to the settlement has appealed the Order approving the settlement to the Fourth Circuit Court of Appeals, and plaintiffs have cross-appealed the former shareholder’s standing to object to the settlement. Briefing in the Fourth Circuit is scheduled to be completed in February 2016. The Company believes that the appeal is without merit, but 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., 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 and briefing on the motion was completed on May 27, 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 |
Property Taxes, Insurance and O
Property Taxes, Insurance and Other Expense | 9 Months Ended |
Sep. 30, 2015 | |
Legal Settlement Recoveries [Abstract] | |
Legal Settlement Recoveries [Text Block] | 11. Property Taxes, Insurance and Other Expense During the third quarter of 2015, the Company received approximately $1.8 million in settlement proceeds, net of costs, from the Deepwater Horizon Economic and Property Damages Settlement Program related to damages suffered at several of the Company’s hotels as a result of the Gulf of Mexico oil spill in 2010, which has been classified as a reduction to property taxes, insurance and other expense. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 12. Subsequent Events In October 2015, the Company paid approximately $17.4 million, or $0.10 per outstanding common share, in distributions to its common shareholders. On October 20, 2015, the Company declared a regular monthly cash distribution of $0.10 per common share for the month of November 2015. The distribution is payable on November 16, 2015, to shareholders of record as of October 30, 2015. On October 16, 2015, the Company closed on the purchase of a 102-room Courtyard and a 78-room Residence Inn in an adjoining two-hotel complex in Syracuse, New York. The gross purchase price for the two hotels was $42.0 million and the Company assumed approximately $22.4 million in mortgage debt (secured jointly by the two hotels). During the month of October 2015, the Company purchased, under its share repurchase program, approximately 42,000 of its common shares, at a weighted-average market purchase price of approximately $18.39 per common share, for an aggregate purchase price of approximately $0.8 million. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 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. Although the Company has interests in potential variable interest entities through its purchase commitments, it is not the primary beneficiary as the Company does not have any elements of power in the decision making process of these entities, and therefore does not consolidate the entities. As of September 30, 2015, the Company owned 177 hotels with an aggregate of 22,782 rooms located in 32 states. On May 18, 2015, the Company’s common shares were listed and began trading on the New York Stock Exchange (“NYSE”) under the ticker symbol “APLE” (the “Listing”). In connection with the Listing, effective May 18, 2015, the Company completed a 50% reverse share split. As a result of the reverse share split, every two common shares were converted into one common share. Except where the context indicates otherwise, all common shares and per share amounts for all periods presented have been adjusted to reflect the reverse share split. See Note 8 for additional information about the reverse share split. |
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 and nine months ended September 30, 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 income (loss), shareholders’ equity or cash flows. Except where the context indicates otherwise, all common shares and per share amounts for all periods presented have been adjusted to reflect the 50% reverse share split. |
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, and other adjustments 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 both the three and nine months ended September 30, 2015 and 2014. As a result, basic and diluted 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 5.8 million additional common shares outstanding. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Standards In September 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-16, Simplifying the ccounting for Measurement-Period Adjustments, In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs |
Mergers with Apple REIT Seven19
Mergers with Apple REIT Seven, Inc. and Apple REIT Eight, Inc. (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Business Acquisition, Pro Forma Information [Table Text Block] | The following unaudited pro forma information for the three and nine month periods ended September 30, 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Total revenue $ 240,555 $ 231,884 $ 685,281 $ 662,421 Net income $ 47,087 $ 35,612 $ 136,091 $ 106,370 Net income per share - basic and diluted $ 0.27 $ 0.19 $ 0.75 $ 0.57 Weighted average common shares outstanding - basic and diluted 175,069 186,910 182,247 186,910 |
Investment in Real Estate (Tabl
Investment in Real Estate (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Real Estate [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The Company acquired five hotels during the first nine months of 2015. The following table sets forth the location, brand, manager, date acquired, number of rooms and gross purchase price for each hotel. All dollar amounts are in thousands. City State Brand Manager Date Acquired Rooms Gross Purchase Price Fort Lauderdale FL Hampton Inn LBA 6/23/2015 156 $ 23,000 Cypress CA Hampton Inn Dimension 6/29/2015 110 19,800 Burbank CA SpringHill Suites Marriott 7/13/2015 170 60,000 Burbank CA Courtyard Huntington 8/11/2015 190 54,000 San Diego CA Courtyard Huntington 9/1/2015 245 56,000 871 $ 212,800 |
Property, Plant and Equipment [Table Text Block] | The Company’s total investment in real estate consisted of the following (in thousands): September 30, December 31, 2015 2014 Land $ 560,205 $ 520,406 Building and Improvements 3,193,708 3,010,314 Furniture, Fixtures and Equipment 279,347 251,170 Franchise Fees 8,287 7,490 4,041,547 3,789,380 Less Accumulated Depreciation (390,065 ) (296,559 ) Investment in Real Estate, net $ 3,651,482 $ 3,492,821 |
Schedule of Outstanding Contracts for Potential Purchase of Hotels [Table Text Block] | As of September 30, 2015, the Company had outstanding contracts for the potential purchase of six additional hotels for a total purchase price of $123.1 million. Of these six hotels, four are under construction and are planned to be completed and opened for business over the next six to 21 months from September 30, 2015, at which time closing on these hotels is expected to occur. Closing on the two remaining hotels, which are already in operation, occurred on October 16, 2015. Although the Company is working towards acquiring the four hotels under construction, 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 location, brand, date of purchase contract, expected number of rooms, refundable (if the seller does not meet its obligations under the contract) contract deposits paid, and gross purchase price for each of the contracts outstanding at September 30, 2015. All dollar amounts are in thousands. Location Brand Date of Purchase Contract Rooms Refundable Deposits Gross Purchase Price Operating Syracuse, NY (a) Courtyard 7/21/2015 102 $ 250 $ 23,940 Syracuse, NY (a) Residence Inn 7/21/2015 78 250 18,060 Under development (b) Atlanta, GA Home2 Suites 5/5/2015 128 300 24,600 Birmingham, AL (c)(d) Home2 Suites 8/28/2015 105 1 19,219 Birmingham, AL (c)(d) Hilton Garden Inn 8/28/2015 105 1 19,219 Fort Worth, TX (d) Courtyard 8/28/2015 124 3 18,034 642 $ 805 $ 123,072 ___________________ (a) The Courtyard and Residence Inn hotels in Syracuse, NY are part of an adjoining two-hotel complex located on the same site. Closing on these hotels occurred on October 16, 2015. At closing, the Company assumed approximately $22.4 million in mortgage debt (secured jointly by the two hotels). 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 brands. Assuming all conditions to closing are met, the purchases of these hotels are expected to close over the next six to 21 months from September 30, 2015. (c) The Home2 Suites and Hilton Garden Inn hotels in Birmingham, AL are part of an adjoining two-hotel complex located on the same site. (d) If the seller meets all of the conditions to closing, the Company is obligated to specifically perform under the contract. As the property is under construction, at this time, the seller has not met all of the conditions to closing. |
Dispositions (Tables)
Dispositions (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Group, Schedule of Property Disposed During Period [Table Text Block] | During the nine months ended September 30, 2015, the Company sold 19 properties in two separate transactions for a total sales price of approximately $208.5 million. In conjunction with these transactions, the Company recorded a gain on sale of approximately $15.4 million, which is included in the Company’s consolidated statements of operations for the nine months ended September 30, 2015. The proceeds from the sale transactions were used primarily to repay the outstanding balance under the Company’s revolving credit facility, with the intent to use the increased availability to fund hotel acquisitions, hotel renovations and other general corporate purposes. The following table lists the properties sold: City State Brand Date Acquired Date Sold Rooms Huntsville AL TownePlace Suites 3/1/2014 2/26/2015 86 Troy AL Courtyard 6/18/2009 2/26/2015 90 Troy AL Hampton Inn 3/1/2014 2/26/2015 82 Rogers AR Fairfield Inn & Suites 3/1/2014 2/26/2015 99 Pueblo CO Hampton Inn & Suites 10/31/2008 2/26/2015 81 Port Wentworth GA Hampton Inn 3/1/2014 2/26/2015 106 Bowling Green KY Hampton Inn 3/1/2014 2/26/2015 130 Alexandria LA Courtyard 9/15/2010 2/26/2015 96 West Monroe LA Hilton Garden Inn 7/30/2010 2/26/2015 134 Concord NC Hampton Inn 3/1/2014 2/26/2015 101 Dunn NC Hampton Inn 3/1/2014 2/26/2015 120 Jacksonville NC TownePlace Suites 2/16/2010 2/26/2015 86 Matthews NC Hampton Inn 3/1/2014 2/26/2015 91 Cincinnati OH Homewood Suites 3/1/2014 2/26/2015 76 Tulsa OK Hampton Inn & Suites 3/1/2014 2/26/2015 102 Jackson TN Courtyard 12/16/2008 2/26/2015 94 Brownsville TX Courtyard 3/1/2014 2/26/2015 90 San Antonio TX TownePlace Suites 3/1/2014 2/26/2015 123 Tupelo MS Hampton Inn 3/1/2014 6/1/2015 96 Total 1,883 |
Credit Facility and Mortgage 22
Credit Facility and Mortgage Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | As of September 30, 2015, the Company had approximately $461.7 million in outstanding property level debt secured by 39 properties, with maturity dates ranging from October 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 September 30, 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 Origination Date Maturity Date Principal Assumed or Originated Outstanding balance as of September 30, 2015 Outstanding balance as of December 31, 2014 Overland Park, KS Residence Inn 5.74 % 3/1/2014 (2 ) $ 6,018 $ 0 $ 5,833 Concord, NC Hampton Inn 6.10 % 3/1/2014 (3 ) 4,718 0 4,644 Westford, MA Residence Inn 5.30 % (4 ) 3/1/2014 (5 ) 6,530 0 6,397 Dallas, TX Hilton 6.63 % 5/17/2011 (6 ) 20,988 0 18,913 Tupelo, MS Hampton Inn 5.90 % 3/1/2014 (7 ) 3,124 0 2,977 Rogers, AR Hampton Inn 5.20 % 8/31/2010 (8 ) 8,337 0 7,593 St. Louis, MO Hampton Inn 5.30 % 8/31/2010 (8 ) 13,915 0 12,692 Kansas City, MO Hampton Inn 5.45 % 8/31/2010 (9 ) 6,517 0 5,961 Kansas City, MO Residence Inn 5.74 % 3/1/2014 (10 ) 10,602 0 10,420 Fayetteville, NC Residence Inn 5.14 % 3/1/2014 (11 ) 6,545 0 6,410 Allen, TX Hilton Garden Inn 5.37 % 10/31/2008 (12 ) 10,787 9,380 9,559 Austin, TX Homewood Suites 5.99 % 4/14/2009 3/1/2016 7,556 6,314 6,486 Austin, TX Hampton Inn 5.95 % 4/14/2009 3/1/2016 7,553 6,306 6,478 Houston, TX Residence Inn 5.71 % 3/1/2014 3/1/2016 9,930 9,573 9,745 Hilton Head, SC Hilton Garden Inn 6.29 % 3/1/2014 4/11/2016 5,557 5,273 5,410 Round Rock, TX Hampton Inn 5.95 % 3/6/2009 5/1/2016 4,175 3,489 3,583 Highlands Ranch, CO Residence Inn 5.94 % 3/1/2014 6/1/2016 10,494 10,172 10,327 Texarkana, TX Hampton Inn & Suites 6.90 % 1/31/2011 7/8/2016 4,954 4,601 4,665 Bristol, VA Courtyard 6.59 % 11/7/2008 8/1/2016 9,767 8,792 8,922 Virginia Beach, VA Courtyard 6.02 % 3/1/2014 11/11/2016 13,931 13,475 13,695 Virginia Beach, VA Courtyard 6.02 % 3/1/2014 11/11/2016 16,813 16,263 16,529 Charlottesville, VA Courtyard 6.02 % 3/1/2014 11/11/2016 14,892 14,405 14,640 Carolina Beach, NC Courtyard 6.02 % 3/1/2014 11/11/2016 12,009 11,617 11,806 Winston-Salem, NC Courtyard 5.94 % 3/1/2014 12/8/2016 7,458 7,254 7,352 Lewisville, TX (13) Hilton Garden Inn 0.00 % 10/16/2008 12/31/2016 3,750 2,000 2,000 Oceanside, CA Residence Inn 4.24 % (4 ) 3/1/2014 1/13/2017 15,662 15,168 15,402 Burbank, CA Residence Inn 4.24 % (4 ) 3/1/2014 1/13/2017 23,493 22,752 23,103 Savannah, GA Hilton Garden Inn 5.87 % 3/1/2014 2/1/2017 4,977 4,730 4,849 Greenville, SC Residence Inn 6.03 % 3/1/2014 2/8/2017 6,012 5,839 5,922 Birmingham, AL Homewood Suites 6.03 % 3/1/2014 2/8/2017 10,908 10,594 10,745 Jacksonville, FL Homewood Suites 6.03 % 3/1/2014 2/8/2017 15,856 15,399 15,619 Irving, TX Homewood Suites 5.83 % 12/29/2010 4/11/2017 6,052 5,305 5,437 Duncanville, TX Hilton Garden Inn 5.88 % 10/21/2008 5/11/2017 13,966 12,468 12,661 Grapevine, TX Hilton Garden Inn 4.89 % 8/29/2012 9/1/2022 11,810 11,055 11,254 Collegeville/Philadelphia, PA Courtyard 4.89 % 8/30/2012 9/1/2022 12,650 11,841 12,055 Hattiesburg, MS Courtyard 5.00 % 3/1/2014 9/1/2022 5,732 5,529 5,627 Rancho Bernardo, CA Courtyard 5.00 % 3/1/2014 9/1/2022 15,060 14,525 14,782 Kirkland, WA Courtyard 5.00 % 3/1/2014 9/1/2022 12,145 11,714 11,921 Seattle, WA Residence Inn 4.96 % 3/1/2014 9/1/2022 28,269 27,258 27,744 Anchorage, AK Embassy Suites 4.97 % 9/13/2012 10/1/2022 23,230 21,807 22,193 Somerset, NJ Courtyard 4.73 % 3/1/2014 10/6/2022 8,750 8,429 8,584 Tukwila, WA Homewood Suites 4.73 % 3/1/2014 10/6/2022 9,431 9,085 9,251 Prattville, AL Courtyard 4.12 % 3/1/2014 2/6/2023 6,596 6,338 6,462 Huntsville, AL Homewood Suites 4.12 % 3/1/2014 2/6/2023 8,306 7,981 8,137 San Diego, CA Residence Inn 3.97 % 3/1/2014 3/6/2023 18,600 17,862 18,216 Miami, FL Homewood Suites 4.02 % 3/1/2014 4/1/2023 16,677 16,023 16,337 New Orleans, LA Homewood Suites 4.36 % 7/17/2014 8/11/2024 27,000 26,358 26,806 Westford, MA Residence Inn 4.28 % 3/18/2015 4/11/2025 (5 ) 10,000 9,910 0 Dallas, TX Hilton 3.95 % 5/22/2015 6/1/2025 (6 ) 28,000 27,877 0 Malvern/Philadelphia, PA Courtyard 6.50 % 11/30/2010 10/1/2032 (14 ) 7,894 6,969 7,132 $ 573,996 $ 461,730 $ 513,276 Unamortized fair value adjustment of assumed debt 2,016 4,694 Total $ 463,746 $ 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) On April 6, 2015, the Company repaid in full the existing mortgage loan, and on May 22, 2015 the Company originated new debt secured by this hotel. (7) Property securing loan was sold on June 1, 2015. Debt was extinguished prior to the sale on May 22, 2015. (8) Loans were repaid in full on June 1, 2015. (9) Loan was repaid in full on July 1, 2015. (10) Loan was repaid in full on August 3, 2015. (11) Loan was repaid in full on September 1, 2015. (12) Loan was repaid in full on October 12, 2015. (13) Unsecured loan. (14) 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 Instr23
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Interest Rate Derivatives [Table Text Block] | The following is a summary of the notional amounts, assumption or origination dates, maturity dates and fair values (liabilities) of the interest rate swap agreements outstanding as of September 30, 2015 and December 31, 2014 (in thousands): Notional amount at Assumption or Fair value Hedge Type September 30, 2015 Origination Date Maturity date September 30, 2015 December 31, 2014 Non-designated hedge (1) $ 0 3/1/2014 10/1/2015 $ 0 $ (74 ) Non-designated hedge (2) 0 3/1/2014 1/13/2015 0 (11 ) Non-designated hedge (3) 37,920 3/1/2014 1/13/2017 (285 ) (183 ) Non-designated hedge (4) 0 3/6/2014 3/1/2019 0 (511 ) Cash flow hedge 212,500 5/21/2015 5/18/2020 (3,930 ) 0 Cash flow hedge 110,000 7/2/2015 5/18/2020 (2,233 ) 0 $ (6,448 ) $ (779 ) ________ (1) 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. (2) Swap matured during the first quarter of 2015. (3) Effective date of the forward interest rate swap agreement was January 13, 2015, the same date the previous swap agreement matured. (4) 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, the swap was no longer designated as a cash flow hedge. The swap was terminated on May 18, 2015. |
Organization and Summary of S24
Organization and Summary of Significant Accounting Policies (Details) | Mar. 01, 2014shares | Sep. 30, 2015shares | Sep. 30, 2014shares | Sep. 30, 2015shares | Sep. 30, 2014shares |
Organization and Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Number of Reportable Segments | 1 | ||||
Number of Hotels | 177 | 177 | |||
Aggregate Number of Hotel Rooms | 22,782 | 22,782 | |||
Number of States in which Hotels Are Located | 32 | 32 | |||
Reverse Stock Split Ratio of Common Stock | 0.50 | ||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 0 | 0 | 0 | 0 | |
Termination of Advisory Agreements [Member] | Apple Seven and Apple Eight Mergers and Related Transactions [Member] | Series B Convertible Preferred Shares Converted to Common Shares [Member] | |||||
Organization and Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 5,800,000 |
Mergers with Apple REIT Seven25
Mergers with Apple REIT Seven, Inc. and Apple REIT Eight, Inc. (Details) $ / shares in Units, $ in Thousands | Mar. 01, 2014USD ($)$ / sharesshares | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 01, 2015 | Feb. 26, 2015 | Mar. 03, 2014USD ($) |
Mergers with Apple REIT Seven, Inc. and Apple REIT Eight, Inc. (Details) [Line Items] | ||||||||||
Number of Hotels | 177 | 177 | 177 | 177 | ||||||
Number of States in which Hotels Are Located | 32 | 32 | 32 | 32 | ||||||
Aggregate Number of Hotel Rooms | 22,782 | 22,782 | 22,782 | 22,782 | ||||||
Stock Issued During Period, Value, Acquisitions | $ 0 | $ 1,814,613 | ||||||||
Convertible Preferred Stock Converted to Other Securities | $ 0 | $ 0 | 0 | 117,133 | ||||||
Transaction and Listing Costs | 842 | 707 | 7,891 | 4,593 | ||||||
Revenues | 240,555 | 231,884 | 685,281 | 601,573 | ||||||
Operating Income (Loss) | 56,408 | 42,055 | 144,859 | 3,191 | ||||||
Original $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 | |||||||||
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 Hotels | 99 | |||||||||
Number of States in which Hotels Are Located | 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 Hotels | 48 | |||||||||
Aggregate Number of Hotel Rooms | 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 Hotels | 51 | |||||||||
Aggregate Number of Hotel Rooms | 5,912 | |||||||||
Apple Seven and Apple Eight Mergers and Related Transactions [Member] | Excluded From Pro Forma Amounts [Member] | ||||||||||
Mergers with Apple REIT Seven, Inc. and Apple REIT Eight, Inc. (Details) [Line Items] | ||||||||||
Convertible Preferred Stock Converted to Other Securities | 117,100 | |||||||||
Transaction and Listing Costs | $ 100 | 500 | 1,000 | 3,500 | ||||||
Apple Seven and Apple Eight Mergers [Member] | ||||||||||
Mergers with Apple REIT Seven, Inc. and Apple REIT Eight, Inc. (Details) [Line Items] | ||||||||||
Transaction and Listing Costs | $ 1,000 | 3,500 | $ 7,500 | |||||||
Revenues | 282,700 | |||||||||
Operating Income (Loss) | 63,700 | |||||||||
Apple Seven and Apple Eight Mergers [Member] | Costs Incurred to Defend Ongoing Purported Class Action Net of Reimbursements from Company's D&O Insurance Carriers [Member] | ||||||||||
Mergers with Apple REIT Seven, Inc. and Apple REIT Eight, Inc. (Details) [Line Items] | ||||||||||
Transaction and Listing Costs | $ 1,300 | |||||||||
Apple Seven and Apple Eight Mergers [Member] | Reimbursements from the Company's Directors and Officers Insurance Carriers [Member] | ||||||||||
Mergers with Apple REIT Seven, Inc. and Apple REIT Eight, Inc. (Details) [Line Items] | ||||||||||
Reimbursement from D&O Insurance Carriers | $ 600 | |||||||||
Series B Convertible Preferred Shares Converted to Common Shares [Member] | Apple Seven and Apple Eight Mergers and Related Transactions [Member] | Termination of Advisory Agreements [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) | $ / shares | $ 20.20 | |||||||||
Convertible Preferred Stock, Shares Issued upon Conversion (in Shares) | shares | 12.08552 | |||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities (in Shares) | shares | 5,800,000 | |||||||||
Convertible Preferred Stock Converted to Other Securities | $ 117,100 | |||||||||
Apple Hospitality [Member] | Apple Seven and Apple Eight Mergers and Related Transactions [Member] | Total Consideration of Apple Hospitality's Common Shares Transferred [Member] | ||||||||||
Mergers with Apple REIT Seven, Inc. and Apple REIT Eight, Inc. (Details) [Line Items] | ||||||||||
Stock Issued During Period, Shares, Acquisitions (in Shares) | shares | 90,000,000 | |||||||||
Stock Issued During Period, Value, Acquisitions | $ 1,800,000 | |||||||||
Fair Value Estimate of Company Common Stock Per Share (in Dollars per share) | $ / shares | $ 20.20 | |||||||||
Hotels Sold [Member] | ||||||||||
Mergers with Apple REIT Seven, Inc. and Apple REIT Eight, Inc. (Details) [Line Items] | ||||||||||
Number of Hotels | 19 | 19 | 19 | 19 | 18 | |||||
Aggregate Number of Hotel Rooms | 1,883 | 1,883 | 1,883 | 1,883 | ||||||
Operating Income (Loss) | $ 1,200 | $ 2,000 | $ 6,700 | |||||||
Hotels Sold [Member] | 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 Hotels | 13 | 13 | 13 | 13 | 1 | 12 | ||||
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 | |||||||||
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 |
Mergers with Apple REIT Seven26
Mergers with Apple REIT Seven, Inc. and Apple REIT Eight, Inc. (Details) - Business Acquisition, Pro Forma Information - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Business Acquisition, Pro Forma Information [Abstract] | ||||
Total revenue | $ 240,555 | $ 231,884 | $ 685,281 | $ 662,421 |
Net income | $ 47,087 | $ 35,612 | $ 136,091 | $ 106,370 |
Net income per share - basic and diluted (in Dollars per share) | $ 0.27 | $ 0.19 | $ 0.75 | $ 0.57 |
Weighted average common shares outstanding - basic and diluted (in Shares) | 175,069 | 186,910 | 182,247 | 186,910 |
Investment in Real Estate (Deta
Investment in Real Estate (Details) | Oct. 16, 2015USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) |
Investment in Real Estate (Details) [Line Items] | |||||
Revenues (in Dollars) | $ 240,555,000 | $ 231,884,000 | $ 685,281,000 | $ 601,573,000 | |
Operating Income (Loss) (in Dollars) | $ 56,408,000 | 42,055,000 | $ 144,859,000 | 3,191,000 | |
Number of Hotels | 177 | 177 | |||
Aggregate Number of Hotel Rooms | 22,782 | 22,782 | |||
Number of States in which Hotels Are Located | 32 | 32 | |||
Impairment of Real Estate (in Dollars) | $ 0 | $ 8,600,000 | $ 0 | $ 8,600,000 | |
Hotel Acquisitions [Member] | |||||
Investment in Real Estate (Details) [Line Items] | |||||
Number of Businesses Acquired | 5 | ||||
Business Combination, Acquisition Related Costs (in Dollars) | $ 400,000 | ||||
Revenues (in Dollars) | 6,700,000 | ||||
Operating Income (Loss) (in Dollars) | 1,600,000 | ||||
Goodwill (in Dollars) | $ 0 | $ 0 | |||
Potential Purchase of Additional Hotels Under Contract [Member] | |||||
Investment in Real Estate (Details) [Line Items] | |||||
Number of Hotels | 6 | 6 | |||
Aggregate Number of Hotel Rooms | 642 | 642 | |||
Business Acquisition, Gross Purchase Price (in Dollars) | $ 123,072,000 | $ 123,072,000 | |||
Potential Purchase of Additional Hotels Under Contract [Member] | Hotels Under Development [Member] | |||||
Investment in Real Estate (Details) [Line Items] | |||||
Number of Hotels | 4 | 4 | |||
Hotel Construction, Time to Completion | over the next six to 21 months | ||||
Potential Purchase of Additional Hotels Under Contract [Member] | Hotels Already in Operation [Member] | |||||
Investment in Real Estate (Details) [Line Items] | |||||
Number of Hotels | 2 | 2 | |||
Properties for Potential Sale [Member] | |||||
Investment in Real Estate (Details) [Line Items] | |||||
Number of Hotels | 22 | 22 | |||
Properties for Potential Sale [Member] | Real Estate Held and Used Impairment [Member] | |||||
Investment in Real Estate (Details) [Line Items] | |||||
Number of Hotels | 3 | 3 | |||
Impairment of Real Estate (in Dollars) | $ 8,600,000 | $ 8,600,000 | |||
Courtyard and Residence Inn Syracuse, NY [Member] | Subsequent Event [Member] | |||||
Investment in Real Estate (Details) [Line Items] | |||||
Business Acquisition, Gross Purchase Price (in Dollars) | $ 42,000,000 | ||||
Noncash or Part Noncash Acquisition, Debt Assumed (in Dollars) | $ 22,400,000 | ||||
Number of Hotel Properties Used to Secure Debt | 2 | ||||
Homewood Suites Hartford, CT [Member] | Termination of Contract for Potential Purchase of Additional Hotel [Member] | |||||
Investment in Real Estate (Details) [Line Items] | |||||
Aggregate Number of Hotel Rooms | 116 | 116 | |||
Terminated Purchase Contract, Purchase Price (in Dollars) | $ 18,500,000 | ||||
Return of Deposit on Purchase Contract (in Dollars) | $ 500,000 |
Investment in Real Estate (De28
Investment in Real Estate (Details) - Hotel Acquisition $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Business Acquisition [Line Items] | |
Rooms | 22,782 |
Hampton Inn Fort Lauderdale, FL [Member] | |
Business Acquisition [Line Items] | |
State | FL |
Brand | Hampton Inn |
Manager | LBA |
Date Acquired | Jun. 23, 2015 |
Rooms | 156 |
Gross Purchase Price | $ 23,000 |
Hampton Inn Cypress, CA [Member] | |
Business Acquisition [Line Items] | |
State | CA |
Brand | Hampton Inn |
Manager | Dimension |
Date Acquired | Jun. 29, 2015 |
Rooms | 110 |
Gross Purchase Price | $ 19,800 |
SpringHill Suites Burbank, CA [Member] | |
Business Acquisition [Line Items] | |
State | CA |
Brand | SpringHill Suites |
Manager | Marriott |
Date Acquired | Jul. 13, 2015 |
Rooms | 170 |
Gross Purchase Price | $ 60,000 |
Courtyard Burbank, CA [Member] | |
Business Acquisition [Line Items] | |
State | CA |
Brand | Courtyard |
Manager | Huntington |
Date Acquired | Aug. 11, 2015 |
Rooms | 190 |
Gross Purchase Price | $ 54,000 |
Courtyard San Diego, CA [Member] | |
Business Acquisition [Line Items] | |
State | CA |
Brand | Courtyard |
Manager | Huntington |
Date Acquired | Sep. 1, 2015 |
Rooms | 245 |
Gross Purchase Price | $ 56,000 |
Total [Member] | |
Business Acquisition [Line Items] | |
Rooms | 871 |
Gross Purchase Price | $ 212,800 |
Investment in Real Estate (De29
Investment in Real Estate (Details) - Investment in Real Estate - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Investment in Real Estate [Abstract] | ||
Land | $ 560,205 | $ 520,406 |
Building and Improvements | 3,193,708 | 3,010,314 |
Furniture, Fixtures and Equipment | 279,347 | 251,170 |
Franchise Fees | 8,287 | 7,490 |
4,041,547 | 3,789,380 | |
Less Accumulated Depreciation | (390,065) | (296,559) |
Investment in Real Estate, net | $ 3,651,482 | $ 3,492,821 |
Investment in Real Estate (De30
Investment in Real Estate (Details) - Outstanding Contracts $ in Thousands | 9 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | ||
Investment in Real Estate (Details) - Outstanding Contracts [Line Items] | |||
Rooms | 22,782 | ||
Refundable Deposits | $ 1,130 | $ 0 | |
Potential Purchase of Additional Hotels Under Contract [Member] | |||
Investment in Real Estate (Details) - Outstanding Contracts [Line Items] | |||
Rooms | 642 | ||
Refundable Deposits | $ 805 | ||
Gross Purchase Price | $ 123,072 | ||
Courtyard Syracuse, NY [Member] | Potential Purchase of Additional Hotels Under Contract [Member] | Hotels Already in Operation [Member] | |||
Investment in Real Estate (Details) - Outstanding Contracts [Line Items] | |||
Brand | [1] | Courtyard | |
Date of Purchase Contract | Jul. 21, 2015 | ||
Rooms | 102 | ||
Refundable Deposits | $ 250 | ||
Gross Purchase Price | $ 23,940 | ||
Residence Inn Syracuse, NY [Member] | Potential Purchase of Additional Hotels Under Contract [Member] | Hotels Already in Operation [Member] | |||
Investment in Real Estate (Details) - Outstanding Contracts [Line Items] | |||
Brand | [1] | Residence Inn | |
Date of Purchase Contract | Jul. 21, 2015 | ||
Rooms | 78 | ||
Refundable Deposits | $ 250 | ||
Gross Purchase Price | $ 18,060 | ||
Home2 Suites Atlanta, GA [Member] | Potential Purchase of Additional Hotels Under Contract [Member] | Hotels Under Development [Member] | |||
Investment in Real Estate (Details) - Outstanding Contracts [Line Items] | |||
Brand | [2] | Home2 Suites | |
Date of Purchase Contract | May 5, 2015 | ||
Rooms | 128 | ||
Refundable Deposits | $ 300 | ||
Gross Purchase Price | $ 24,600 | ||
Home2 Suite Birmingham, AL [Member] | Potential Purchase of Additional Hotels Under Contract [Member] | Hotels Under Development [Member] | |||
Investment in Real Estate (Details) - Outstanding Contracts [Line Items] | |||
Brand | [2],[3],[4] | Home2 Suites | |
Date of Purchase Contract | Aug. 28, 2015 | ||
Rooms | 105 | ||
Refundable Deposits | $ 1 | ||
Gross Purchase Price | $ 19,219 | ||
Hilton Garden Inn Birmingham, AL [Member] | Potential Purchase of Additional Hotels Under Contract [Member] | Hotels Under Development [Member] | |||
Investment in Real Estate (Details) - Outstanding Contracts [Line Items] | |||
Brand | [2],[3],[4] | Hilton Garden Inn | |
Date of Purchase Contract | Aug. 28, 2015 | ||
Rooms | 105 | ||
Refundable Deposits | $ 1 | ||
Gross Purchase Price | $ 19,219 | ||
Courtyard Fort Worth, TX [Member] | Potential Purchase of Additional Hotels Under Contract [Member] | Hotels Under Development [Member] | |||
Investment in Real Estate (Details) - Outstanding Contracts [Line Items] | |||
Brand | [2],[3] | Courtyard | |
Date of Purchase Contract | Aug. 28, 2015 | ||
Rooms | 124 | ||
Refundable Deposits | $ 3 | ||
Gross Purchase Price | $ 18,034 | ||
[1] | The Courtyard and Residence Inn hotels in Syracuse, NY are part of an adjoining two-hotel complex located on the same site. Closing on these hotels occurred on October 16, 2015. At closing, the Company assumed approximately $22.4 million in mortgage debt (secured jointly by the two hotels). 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 brands. Assuming all conditions to closing are met, the purchases of these hotels are expected to close over the next six to 21 months from September 30, 2015. | ||
[3] | If the seller meets all of the conditions to closing, the Company is obligated to specifically perform under the contract. As the property is under construction, at this time, the seller has not met all of the conditions to closing. | ||
[4] | The Home2 Suites and Hilton Garden Inn hotels in Birmingham, AL are part of an adjoining two-hotel complex located on the same site. |
Dispositions (Details)
Dispositions (Details) $ in Thousands | 2 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Feb. 26, 2015USD ($) | Feb. 13, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | Jun. 01, 2015 | Mar. 01, 2014 | |
Dispositions (Details) [Line Items] | ||||||||||
Number of Hotels | 177 | 177 | ||||||||
Gain (Loss) on Disposition of Assets | $ 0 | $ 0 | $ 15,358 | $ 0 | ||||||
Real Estate Held-for-sale | 0 | 0 | $ 195,588 | |||||||
Operating Income (Loss) | $ 56,408 | 42,055 | $ 144,859 | 3,191 | ||||||
Hotels Sold [Member] | ||||||||||
Dispositions (Details) [Line Items] | ||||||||||
Number of Hotels | 18 | 19 | 19 | |||||||
Number of Real Estate Transactions | 2 | |||||||||
Sale of Real Estate Assets, Gross Sales Price | $ 208,500 | |||||||||
Gain (Loss) on Disposition of Assets | 15,400 | |||||||||
Operating Income (Loss) | $ 1,200 | $ 2,000 | $ 6,700 | |||||||
Hotels Held for Sale [Member] | ||||||||||
Dispositions (Details) [Line Items] | ||||||||||
Number of Hotels | 19 | |||||||||
Sale of Real Estate Assets, Gross Sales Price | $ 213,000 | |||||||||
Sale of Hotels Held for Sale [Member] | ||||||||||
Dispositions (Details) [Line Items] | ||||||||||
Number of Hotels | 18 | |||||||||
Sale of Real Estate Assets, Gross Sales Price | $ 206,400 | |||||||||
Gain (Loss) on Disposition of Assets | 15,600 | |||||||||
Real Estate Held-for-sale | $ 188,300 | |||||||||
Hotels Acquired from Apple Seven and Apple Eight Mergers [Member] | ||||||||||
Dispositions (Details) [Line Items] | ||||||||||
Number of Hotels | 99 | |||||||||
Hotels Acquired from Apple Seven and Apple Eight Mergers [Member] | Hotels Sold [Member] | ||||||||||
Dispositions (Details) [Line Items] | ||||||||||
Number of Hotels | 12 | 13 | 13 | 1 | ||||||
Hampton Inn Concord, NC [Member] | Sale of Hotels Held for Sale [Member] | ||||||||||
Dispositions (Details) [Line Items] | ||||||||||
Repayments of Secured Debt | $ 4,600 | |||||||||
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 | |||||||||
Hampton Inn Tupelo, MS [Member] | Hotel Sold June 1, 2015 [Member] | ||||||||||
Dispositions (Details) [Line Items] | ||||||||||
Sale of Real Estate Assets, Gross Sales Price | $ 2,100 | |||||||||
Gain (Loss) on Disposition of Assets | $ (300) |
Dispositions (Details) - Schedu
Dispositions (Details) - Schedule of Hotels Sold | 9 Months Ended |
Sep. 30, 2015 | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Rooms | 22,782 |
Hotels Sold [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Rooms | 1,883 |
TownePlace Suites Huntsville, AL [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Date Sold | Feb. 26, 2015 |
Date Acquired | Mar. 1, 2014 |
Rooms | 86 |
Courtyard Troy, AL [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Date Sold | Feb. 26, 2015 |
Date Acquired | Jun. 18, 2009 |
Rooms | 90 |
Hampton Inn Troy, AL [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Date Sold | Feb. 26, 2015 |
Date Acquired | Mar. 1, 2014 |
Rooms | 82 |
Fairfield Inn & Suites Rogers, AR [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Date Sold | Feb. 26, 2015 |
Date Acquired | Mar. 1, 2014 |
Rooms | 99 |
Hampton Inn & Suites Pueblo, CO [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Date Sold | Feb. 26, 2015 |
Date Acquired | Oct. 31, 2008 |
Rooms | 81 |
Hampton Inn Port Wentworth, GA [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Date Sold | Feb. 26, 2015 |
Date Acquired | Mar. 1, 2014 |
Rooms | 106 |
Hampton Inn Bowling Green, KY [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Date Sold | Feb. 26, 2015 |
Date Acquired | Mar. 1, 2014 |
Rooms | 130 |
Courtyard Alexandria, LA [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Date Sold | Feb. 26, 2015 |
Date Acquired | Sep. 15, 2010 |
Rooms | 96 |
Hilton Garden Inn West Monroe, LA [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Date Sold | Feb. 26, 2015 |
Date Acquired | Jul. 30, 2010 |
Rooms | 134 |
Hampton Inn Concord, NC [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Date Sold | Feb. 26, 2015 |
Date Acquired | Mar. 1, 2014 |
Rooms | 101 |
Hampton Inn Dunn, NC [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Date Sold | Feb. 26, 2015 |
Date Acquired | Mar. 1, 2014 |
Rooms | 120 |
TownePlace Suites Jacksonville, NC [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Date Sold | Feb. 26, 2015 |
Date Acquired | Feb. 16, 2010 |
Rooms | 86 |
Hampton Inn Matthews, NC [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Date Sold | Feb. 26, 2015 |
Date Acquired | Mar. 1, 2014 |
Rooms | 91 |
Homewood Suites Cincinnati, OH [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Date Sold | Feb. 26, 2015 |
Date Acquired | Mar. 1, 2014 |
Rooms | 76 |
Hampton Inn & Suites Tulsa, OK [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Date Sold | Feb. 26, 2015 |
Date Acquired | Mar. 1, 2014 |
Rooms | 102 |
Courtyard Jackson, TN [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Date Sold | Feb. 26, 2015 |
Date Acquired | Dec. 16, 2008 |
Rooms | 94 |
Courtyard Brownsville, TX [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Date Sold | Feb. 26, 2015 |
Date Acquired | Mar. 1, 2014 |
Rooms | 90 |
TownePlace Suites San Antonio, TX [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Date Sold | Feb. 26, 2015 |
Date Acquired | Mar. 1, 2014 |
Rooms | 123 |
Hampton Inn Tupelo, MS [Member] | |
Dispositions (Details) - Schedule of Hotels Sold [Line Items] | |
Date Sold | Jun. 1, 2015 |
Date Acquired | Mar. 1, 2014 |
Rooms | 96 |
Credit Facility and Mortgage 33
Credit Facility and Mortgage Debt (Details) $ in Thousands | Mar. 03, 2014USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2014USD ($) |
Credit Facility and Mortgage Debt (Details) [Line Items] | |||
Long-term Line of Credit | $ 500,500 | $ 191,600 | |
Original $345 Million Unsecured Credit Facility [Member] | |||
Credit Facility and Mortgage Debt (Details) [Line Items] | |||
Line of Credit Facility, Initiation Date | Mar. 3, 2014 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 345,000 | ||
Long-term Line of Credit | 191,600 | ||
$965 Million Unsecured Credit Facility [Member] | |||
Credit Facility and Mortgage Debt (Details) [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 965,000 | ||
Date of Amended and Restated Credit Facility | May 18, 2015 | ||
Credit Facility, Amendment and Restatement Description | the Company entered into an amendment and restatement of the $345 million credit facility, increasing the borrowing capacity to $965 million and extending the maturity dates | ||
Line of Credit Facility, Borrowing Capacity, Description | the amount of the total credit facility may be increased from $965 million to $1.25 billion | ||
Long-term Line of Credit | $ 500,500 | ||
Line of Credit Facility, Covenant Terms | Similar to the $345 million credit facility, the $965 million credit facility contains mandatory prepayment requirements, customary affirmative covenants, negative covenants and events of default. The credit agreement requires that the Company comply with various covenants, including covenants restricting liens, indebtedness, investments, mergers, asset sales and the payment of certain dividends. In addition, the credit facility contains covenants restricting the level of certain investments and the following quarterly financial covenants (capitalized terms are defined in the credit agreement).· A ratio of Consolidated Total Indebtedness to Consolidated EBITDA of not more than 6.00 to 1.00 (subject to a higher amount in certain circumstances);· A ratio of Consolidated Secured Indebtedness to Consolidated Total Assets of not more than 45%;· A minimum Consolidated Tangible Net Worth of $2.3 billion (plus 75% of the Net Cash Proceeds from issuances and sales of Equity Interests occurring after the Closing Date, subject to adjustment, less the lesser of (a) 75% of Restricted Payments for the tender, redemption and/or other purchases of its common stock made by the Company after the Closing Date and (b) $375 million);· A ratio of Adjusted Consolidated EBITDA to Consolidated Fixed Charges of not less than 1.50 to 1.00 for the trailing four full quarters;· A ratio of Unencumbered Adjusted NOI to Consolidated Implied Interest Expense for Consolidated Unsecured Indebtedness of not less than 2.00 to 1.00 for the trailing four full quarters;· A ratio of Consolidated Unsecured Indebtedness to Unencumbered Asset Value of not more than 60% (subject to a higher level in certain circumstances);· A ratio of Consolidated Secured Recourse Indebtedness to Consolidated Total Assets of not more than 10%; and· Restricted Payments (including distributions and share repurchases), net of any proceeds from a dividend reinvestment plan and excluding Restricted Payments for the tender, redemption and/or other purchases of its common stock in an amount not to exceed $700 million in the aggregate, cannot exceed 100% of Funds From Operations for the fiscal year ending December 31, 2015, reducing to 95% of Funds from Operations for all fiscal years thereafter, unless the Company is required to distribute more to meet REIT requirements.The Company was in compliance with the applicable covenants at September 30, 2015. | ||
London Interbank Offered Rate (LIBOR) [Member] | $965 Million Unsecured Credit Facility [Member] | |||
Credit Facility and Mortgage Debt (Details) [Line Items] | |||
Debt Instrument, Description of Variable Rate Basis | one-month LIBOR | ||
$245 Million Unsecured Revolving Credit Facility [Member] | Original $345 Million Unsecured Credit Facility [Member] | |||
Credit Facility and Mortgage Debt (Details) [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 245,000 | 245,000 | |
Long-term Line of Credit | $ 91,600 | ||
Line of Credit Facility, Interest Rate at Period End | 1.77% | ||
Unsecured $100 Million Term Loan [Member] | Original $345 Million Unsecured Credit Facility [Member] | |||
Credit Facility and Mortgage Debt (Details) [Line Items] | |||
Debt Instrument, Face Amount | $ 100,000 | ||
Long-term Line of Credit | $ 100,000 | ||
Line of Credit Facility, Interest Rate at Period End | 3.13% | ||
$540 Million Unsecured Revolving Credit Facility [Member] | $965 Million Unsecured Credit Facility [Member] | |||
Credit Facility and Mortgage Debt (Details) [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 540,000 | ||
Line of Credit Facility, Expiration Date | May 18, 2019 | ||
Debt Instrument, Maturity Date, Description | maturity date may be extended one year | ||
Long-term Line of Credit | $ 75,500 | ||
Line of Credit Facility, Interest Rate at Period End | 1.74% | ||
Unsecured $425 Million Term Loan Facility [Member] | $965 Million Unsecured Credit Facility [Member] | |||
Credit Facility and Mortgage Debt (Details) [Line Items] | |||
Term Loan Facility, Maximum Borrowing Capacity | $ 425,000 | ||
Debt Instrument, Maturity Date | May 18, 2020 | ||
Debt Instrument, Description | consisting of three term loans, of which $212.5 million was funded on May 18, 2015, $110.0 million was funded on July 1, 2015, and $102.5 million was funded on August 14, 2015 | ||
Number of Term Loans | 3 | ||
Derivative, Description of Hedged Item | In conjunction with two of the term loans, including the $212.5 million term loan and $110.0 million term loan, the Company entered into interest rate swap agreements for the same notional amounts and maturities as these loans. The interest rate swap agreements effectively provide the Company with payment requirements equal to a fixed interest rate on the variable rate debt (subject to adjustment based on the Company’s leverage ratio) through the maturity in May 2020 | ||
Long-term Line of Credit | $ 425,000 | ||
Line of Credit Facility, Interest Rate at Period End | 2.76% | ||
Unsecured $425 Million Term Loan Facility [Member] | $965 Million Unsecured Credit Facility [Member] | Unsecured $212.5 Million Term Loan Funded May 18, 2015 [Member] | |||
Credit Facility and Mortgage Debt (Details) [Line Items] | |||
Debt Instrument, Face Amount | $ 212,500 | ||
Unsecured $425 Million Term Loan Facility [Member] | $965 Million Unsecured Credit Facility [Member] | Unsecured $110.0 Million Term Loan Funded July 1, 2015 [Member] | |||
Credit Facility and Mortgage Debt (Details) [Line Items] | |||
Debt Instrument, Face Amount | 110,000 | ||
Unsecured $425 Million Term Loan Facility [Member] | $965 Million Unsecured Credit Facility [Member] | Unsecured $102.5 Million Term Loan Funded August 14, 2015 [Member] | |||
Credit Facility and Mortgage Debt (Details) [Line Items] | |||
Debt Instrument, Face Amount | 102,500 | ||
Unsecured $425 Million Term Loan Facility [Member] | Loans With Interest Rates Effectively Fixed By Interest Rate Swaps [Member] | $965 Million Unsecured Credit Facility [Member] | |||
Credit Facility and Mortgage Debt (Details) [Line Items] | |||
Long-term Line of Credit | $ 322,500 | ||
Line of Credit Facility, Interest Rate at Period End | 3.10% | ||
Mortgage Debt [Member] | |||
Credit Facility and Mortgage Debt (Details) [Line Items] | |||
Debt Instrument, Maturity Date, Description | maturity dates ranging from October 2015 to October 2032 | ||
Long-term Debt, Gross | $ 461,700 | ||
Number of Hotel Properties Used to Secure Debt | 39 | ||
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% | ||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | $965 Million Unsecured Credit Facility [Member] | |||
Credit Facility and Mortgage Debt (Details) [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||
Minimum [Member] | $540 Million Unsecured Revolving Credit Facility [Member] | $965 Million Unsecured Credit Facility [Member] | |||
Credit Facility and Mortgage Debt (Details) [Line Items] | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.20% | ||
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | $965 Million Unsecured Credit Facility [Member] | |||
Credit Facility and Mortgage Debt (Details) [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.30% | ||
Maximum [Member] | $540 Million Unsecured Revolving Credit Facility [Member] | $965 Million Unsecured Credit Facility [Member] | |||
Credit Facility and Mortgage Debt (Details) [Line Items] | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.30% |
Credit Facility and Mortgage 34
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2015 | Dec. 31, 2014 | |||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Total | $ 463,746 | $ 517,970 | ||
Total [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Principal Assumed or Originated | 573,996 | |||
Outstanding Balance | 461,730 | 513,276 | ||
Unamortized fair value adjustment of assumed debt | 2,016 | 4,694 | ||
Total | $ 463,746 | 517,970 | ||
Residence Inn Overland Park, KS [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Residence Inn | |||
Interest Rate | [1] | 5.74% | ||
Loan Assumption or Origination Date | Mar. 1, 2014 | |||
Principal Assumed or Originated | $ 6,018 | |||
Outstanding Balance | $ 0 | [2] | 5,833 | |
Hampton Inn Concord, NC [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Hampton Inn | |||
Interest Rate | [1] | 6.10% | ||
Loan Assumption or Origination Date | Mar. 1, 2014 | |||
Principal Assumed or Originated | $ 4,718 | |||
Outstanding Balance | $ 0 | [3] | 4,644 | |
Residence Inn Westford, MA [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Residence Inn | |||
Interest Rate | [1],[4] | 5.30% | ||
Loan Assumption or Origination Date | Mar. 1, 2014 | |||
Principal Assumed or Originated | $ 6,530 | |||
Outstanding Balance | $ 0 | [5] | 6,397 | |
Hilton Dallas, TX [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Hilton | |||
Interest Rate | [1] | 6.63% | ||
Loan Assumption or Origination Date | May 17, 2011 | |||
Principal Assumed or Originated | $ 20,988 | |||
Outstanding Balance | $ 0 | [6] | 18,913 | |
Hampton Inn Tupelo, MS [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Hampton Inn | |||
Interest Rate | [1] | 5.90% | ||
Loan Assumption or Origination Date | Mar. 1, 2014 | |||
Principal Assumed or Originated | $ 3,124 | |||
Outstanding Balance | $ 0 | [7] | 2,977 | |
Hampton Inn Rogers, AR [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Hampton Inn | |||
Interest Rate | [1] | 5.20% | ||
Loan Assumption or Origination Date | Aug. 31, 2010 | |||
Principal Assumed or Originated | $ 8,337 | |||
Outstanding Balance | $ 0 | [8] | 7,593 | |
Hampton Inn St. Louis, MO [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Hampton Inn | |||
Interest Rate | [1] | 5.30% | ||
Loan Assumption or Origination Date | Aug. 31, 2010 | |||
Principal Assumed or Originated | $ 13,915 | |||
Outstanding Balance | $ 0 | [8] | 12,692 | |
Hampton Inn Kansas City, MO [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Hampton Inn | |||
Interest Rate | [1] | 5.45% | ||
Loan Assumption or Origination Date | Aug. 31, 2010 | |||
Principal Assumed or Originated | $ 6,517 | |||
Outstanding Balance | $ 0 | [9] | 5,961 | |
Residence Inn Kansas City, MO [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Residence Inn | |||
Interest Rate | [1] | 5.74% | ||
Loan Assumption or Origination Date | Mar. 1, 2014 | |||
Principal Assumed or Originated | $ 10,602 | |||
Outstanding Balance | $ 0 | [10] | 10,420 | |
Residence Inn Fayetteville, NC [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Residence Inn | |||
Interest Rate | [1] | 5.14% | ||
Loan Assumption or Origination Date | Mar. 1, 2014 | |||
Principal Assumed or Originated | $ 6,545 | |||
Outstanding Balance | $ 0 | [11] | 6,410 | |
Hilton Garden Inn Allen, TX [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Hilton Garden Inn | |||
Interest Rate | [1] | 5.37% | ||
Loan Assumption or Origination Date | Oct. 31, 2008 | |||
Principal Assumed or Originated | $ 10,787 | |||
Outstanding Balance | $ 9,380 | [12] | 9,559 | |
Homewood Suites Austin, TX [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Homewood Suites | |||
Interest Rate | [1] | 5.99% | ||
Loan Assumption or Origination Date | Apr. 14, 2009 | |||
Maturity Date | Mar. 1, 2016 | |||
Principal Assumed or Originated | $ 7,556 | |||
Outstanding Balance | $ 6,314 | 6,486 | ||
Hampton Inn Austin, TX [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Hampton Inn | |||
Interest Rate | [1] | 5.95% | ||
Loan Assumption or Origination Date | Apr. 14, 2009 | |||
Maturity Date | Mar. 1, 2016 | |||
Principal Assumed or Originated | $ 7,553 | |||
Outstanding Balance | $ 6,306 | 6,478 | ||
Residence Inn Houston, TX [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Residence Inn | |||
Interest Rate | [1] | 5.71% | ||
Loan Assumption or Origination Date | Mar. 1, 2014 | |||
Maturity Date | Mar. 1, 2016 | |||
Principal Assumed or Originated | $ 9,930 | |||
Outstanding Balance | $ 9,573 | 9,745 | ||
Hilton Garden Inn Hilton Head, SC [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Hilton Garden Inn | |||
Interest Rate | [1] | 6.29% | ||
Loan Assumption or Origination Date | Mar. 1, 2014 | |||
Maturity Date | Apr. 11, 2016 | |||
Principal Assumed or Originated | $ 5,557 | |||
Outstanding Balance | $ 5,273 | 5,410 | ||
Hampton Inn Round Rock, TX [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Hampton Inn | |||
Interest Rate | [1] | 5.95% | ||
Loan Assumption or Origination Date | Mar. 6, 2009 | |||
Maturity Date | May 1, 2016 | |||
Principal Assumed or Originated | $ 4,175 | |||
Outstanding Balance | $ 3,489 | 3,583 | ||
Residence Inn Highlands Ranch, CO [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Residence Inn | |||
Interest Rate | [1] | 5.94% | ||
Loan Assumption or Origination Date | Mar. 1, 2014 | |||
Maturity Date | Jun. 1, 2016 | |||
Principal Assumed or Originated | $ 10,494 | |||
Outstanding Balance | $ 10,172 | 10,327 | ||
Hampton Inn & Suites Texarkana, TX [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Hampton Inn & Suites | |||
Interest Rate | [1] | 6.90% | ||
Loan Assumption or Origination Date | Jan. 31, 2011 | |||
Maturity Date | Jul. 8, 2016 | |||
Principal Assumed or Originated | $ 4,954 | |||
Outstanding Balance | $ 4,601 | 4,665 | ||
Courtyard Bristol, VA [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Courtyard | |||
Interest Rate | [1] | 6.59% | ||
Loan Assumption or Origination Date | Nov. 7, 2008 | |||
Maturity Date | Aug. 1, 2016 | |||
Principal Assumed or Originated | $ 9,767 | |||
Outstanding Balance | $ 8,792 | 8,922 | ||
Courtyard Virginia Beach, VA [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Courtyard | |||
Interest Rate | [1] | 6.02% | ||
Loan Assumption or Origination Date | Mar. 1, 2014 | |||
Maturity Date | Nov. 11, 2016 | |||
Principal Assumed or Originated | $ 13,931 | |||
Outstanding Balance | $ 13,475 | 13,695 | ||
Courtyard Virginia Beach, VA [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Courtyard | |||
Interest Rate | [1] | 6.02% | ||
Loan Assumption or Origination Date | Mar. 1, 2014 | |||
Maturity Date | Nov. 11, 2016 | |||
Principal Assumed or Originated | $ 16,813 | |||
Outstanding Balance | $ 16,263 | 16,529 | ||
Courtyard Charlottesville, VA [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Courtyard | |||
Interest Rate | [1] | 6.02% | ||
Loan Assumption or Origination Date | Mar. 1, 2014 | |||
Maturity Date | Nov. 11, 2016 | |||
Principal Assumed or Originated | $ 14,892 | |||
Outstanding Balance | $ 14,405 | 14,640 | ||
Courtyard Carolina Beach, NC [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Courtyard | |||
Interest Rate | [1] | 6.02% | ||
Loan Assumption or Origination Date | Mar. 1, 2014 | |||
Maturity Date | Nov. 11, 2016 | |||
Principal Assumed or Originated | $ 12,009 | |||
Outstanding Balance | $ 11,617 | 11,806 | ||
Courtyard Winston-Salem, NC [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Courtyard | |||
Interest Rate | [1] | 5.94% | ||
Loan Assumption or Origination Date | Mar. 1, 2014 | |||
Maturity Date | Dec. 8, 2016 | |||
Principal Assumed or Originated | $ 7,458 | |||
Outstanding Balance | $ 7,254 | 7,352 | ||
Hilton Garden Inn Lewisville, TX [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | [13] | Hilton Garden Inn | ||
Interest Rate | [1] | 0.00% | ||
Loan Assumption or Origination Date | Oct. 16, 2008 | |||
Maturity Date | Dec. 31, 2016 | |||
Principal Assumed or Originated | $ 3,750 | |||
Outstanding Balance | $ 2,000 | 2,000 | ||
Residence Inn Oceanside, CA [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Residence Inn | |||
Interest Rate | [1],[4] | 4.24% | ||
Loan Assumption or Origination Date | Mar. 1, 2014 | |||
Maturity Date | Jan. 13, 2017 | |||
Principal Assumed or Originated | $ 15,662 | |||
Outstanding Balance | $ 15,168 | 15,402 | ||
Residence Inn Burbank, CA [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Residence Inn | |||
Interest Rate | [1],[4] | 4.24% | ||
Loan Assumption or Origination Date | Mar. 1, 2014 | |||
Maturity Date | Jan. 13, 2017 | |||
Principal Assumed or Originated | $ 23,493 | |||
Outstanding Balance | $ 22,752 | 23,103 | ||
Hilton Garden Inn Savannah, GA [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Hilton Garden Inn | |||
Interest Rate | [1] | 5.87% | ||
Loan Assumption or Origination Date | Mar. 1, 2014 | |||
Maturity Date | Feb. 1, 2017 | |||
Principal Assumed or Originated | $ 4,977 | |||
Outstanding Balance | $ 4,730 | 4,849 | ||
Residence Inn Greenville, SC [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Residence Inn | |||
Interest Rate | [1] | 6.03% | ||
Loan Assumption or Origination Date | Mar. 1, 2014 | |||
Maturity Date | Feb. 8, 2017 | |||
Principal Assumed or Originated | $ 6,012 | |||
Outstanding Balance | $ 5,839 | 5,922 | ||
Homewood Suites Birmingham, AL [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Homewood Suites | |||
Interest Rate | [1] | 6.03% | ||
Loan Assumption or Origination Date | Mar. 1, 2014 | |||
Maturity Date | Feb. 8, 2017 | |||
Principal Assumed or Originated | $ 10,908 | |||
Outstanding Balance | $ 10,594 | 10,745 | ||
Homewood Suites Jacksonville, FL [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Homewood Suites | |||
Interest Rate | [1] | 6.03% | ||
Loan Assumption or Origination Date | Mar. 1, 2014 | |||
Maturity Date | Feb. 8, 2017 | |||
Principal Assumed or Originated | $ 15,856 | |||
Outstanding Balance | $ 15,399 | 15,619 | ||
Homewood Suites Irving, TX [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Homewood Suites | |||
Interest Rate | [1] | 5.83% | ||
Loan Assumption or Origination Date | Dec. 29, 2010 | |||
Maturity Date | Apr. 11, 2017 | |||
Principal Assumed or Originated | $ 6,052 | |||
Outstanding Balance | $ 5,305 | 5,437 | ||
Hilton Garden Inn Duncanville, TX [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Hilton Garden Inn | |||
Interest Rate | [1] | 5.88% | ||
Loan Assumption or Origination Date | Oct. 21, 2008 | |||
Maturity Date | May 11, 2017 | |||
Principal Assumed or Originated | $ 13,966 | |||
Outstanding Balance | $ 12,468 | 12,661 | ||
Hilton Garden Inn Grapevine, TX [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Hilton Garden Inn | |||
Interest Rate | [1] | 4.89% | ||
Loan Assumption or Origination Date | Aug. 29, 2012 | |||
Maturity Date | Sep. 1, 2022 | |||
Principal Assumed or Originated | $ 11,810 | |||
Outstanding Balance | $ 11,055 | 11,254 | ||
Courtyard Collegeville/Philadelphia, PA [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Courtyard | |||
Interest Rate | [1] | 4.89% | ||
Loan Assumption or Origination Date | Aug. 30, 2012 | |||
Maturity Date | Sep. 1, 2022 | |||
Principal Assumed or Originated | $ 12,650 | |||
Outstanding Balance | $ 11,841 | 12,055 | ||
Courtyard Hattiesburg, MS [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Courtyard | |||
Interest Rate | [1] | 5.00% | ||
Loan Assumption or Origination Date | Mar. 1, 2014 | |||
Maturity Date | Sep. 1, 2022 | |||
Principal Assumed or Originated | $ 5,732 | |||
Outstanding Balance | $ 5,529 | 5,627 | ||
Courtyard Rancho Bernardo, CA [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Courtyard | |||
Interest Rate | [1] | 5.00% | ||
Loan Assumption or Origination Date | Mar. 1, 2014 | |||
Maturity Date | Sep. 1, 2022 | |||
Principal Assumed or Originated | $ 15,060 | |||
Outstanding Balance | $ 14,525 | 14,782 | ||
Courtyard Kirkland, WA [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Courtyard | |||
Interest Rate | [1] | 5.00% | ||
Loan Assumption or Origination Date | Mar. 1, 2014 | |||
Maturity Date | Sep. 1, 2022 | |||
Principal Assumed or Originated | $ 12,145 | |||
Outstanding Balance | $ 11,714 | 11,921 | ||
Residence Inn Seattle, WA [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Residence Inn | |||
Interest Rate | [1] | 4.96% | ||
Loan Assumption or Origination Date | Mar. 1, 2014 | |||
Maturity Date | Sep. 1, 2022 | |||
Principal Assumed or Originated | $ 28,269 | |||
Outstanding Balance | $ 27,258 | 27,744 | ||
Embassy Suites Anchorage, AK [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Embassy Suites | |||
Interest Rate | [1] | 4.97% | ||
Loan Assumption or Origination Date | Sep. 13, 2012 | |||
Maturity Date | Oct. 1, 2022 | |||
Principal Assumed or Originated | $ 23,230 | |||
Outstanding Balance | $ 21,807 | 22,193 | ||
Courtyard Somerset, NJ [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Courtyard | |||
Interest Rate | [1] | 4.73% | ||
Loan Assumption or Origination Date | Mar. 1, 2014 | |||
Maturity Date | Oct. 6, 2022 | |||
Principal Assumed or Originated | $ 8,750 | |||
Outstanding Balance | $ 8,429 | 8,584 | ||
Homewood Suites Tukwila, WA [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Homewood Suites | |||
Interest Rate | [1] | 4.73% | ||
Loan Assumption or Origination Date | Mar. 1, 2014 | |||
Maturity Date | Oct. 6, 2022 | |||
Principal Assumed or Originated | $ 9,431 | |||
Outstanding Balance | $ 9,085 | 9,251 | ||
Courtyard Prattville, AL [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Courtyard | |||
Interest Rate | [1] | 4.12% | ||
Loan Assumption or Origination Date | Mar. 1, 2014 | |||
Maturity Date | Feb. 6, 2023 | |||
Principal Assumed or Originated | $ 6,596 | |||
Outstanding Balance | $ 6,338 | 6,462 | ||
Homewood Suites Huntsville, AL [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Homewood Suites | |||
Interest Rate | [1] | 4.12% | ||
Loan Assumption or Origination Date | Mar. 1, 2014 | |||
Maturity Date | Feb. 6, 2023 | |||
Principal Assumed or Originated | $ 8,306 | |||
Outstanding Balance | $ 7,981 | 8,137 | ||
Residence Inn San Diego, CA [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Residence Inn | |||
Interest Rate | [1] | 3.97% | ||
Loan Assumption or Origination Date | Mar. 1, 2014 | |||
Maturity Date | Mar. 6, 2023 | |||
Principal Assumed or Originated | $ 18,600 | |||
Outstanding Balance | $ 17,862 | 18,216 | ||
Homewood Suites Miami, FL [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Homewood Suites | |||
Interest Rate | [1] | 4.02% | ||
Loan Assumption or Origination Date | Mar. 1, 2014 | |||
Maturity Date | Apr. 1, 2023 | |||
Principal Assumed or Originated | $ 16,677 | |||
Outstanding Balance | $ 16,023 | 16,337 | ||
Homewood Suites New Orleans, LA [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Homewood Suites | |||
Interest Rate | [1] | 4.36% | ||
Loan Assumption or Origination Date | Jul. 17, 2014 | |||
Maturity Date | Aug. 11, 2024 | |||
Principal Assumed or Originated | $ 27,000 | |||
Outstanding Balance | $ 26,358 | 26,806 | ||
Residence Inn Westford, MA [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Residence Inn | |||
Interest Rate | [1] | 4.28% | ||
Loan Assumption or Origination Date | Mar. 18, 2015 | |||
Maturity Date | [5] | Apr. 11, 2025 | ||
Principal Assumed or Originated | $ 10,000 | |||
Outstanding Balance | $ 9,910 | 0 | ||
Hilton Dallas, TX [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Hilton | |||
Interest Rate | [1] | 3.95% | ||
Loan Assumption or Origination Date | May 22, 2015 | |||
Maturity Date | [6] | Jun. 1, 2025 | ||
Principal Assumed or Originated | $ 28,000 | |||
Outstanding Balance | $ 27,877 | 0 | ||
Courtyard Malvern/Philadelphia, PA [Member] | ||||
Credit Facility and Mortgage Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Courtyard | |||
Interest Rate | [1] | 6.50% | ||
Loan Assumption or Origination Date | Nov. 30, 2010 | |||
Maturity Date | [14] | Oct. 1, 2032 | ||
Principal Assumed or Originated | $ 7,894 | |||
Outstanding Balance | $ 6,969 | $ 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] | On April 6, 2015, the Company repaid in full the existing mortgage loan, and on May 22, 2015 the Company originated new debt secured by this hotel. | |||
[7] | Property securing loan was sold on June 1, 2015. Debt was extinguished prior to the sale on May 22, 2015. | |||
[8] | Loans were repaid in full on June 1, 2015. | |||
[9] | Loan was repaid in full on July 1, 2015. | |||
[10] | Loan was repaid in full on August 3, 2015. | |||
[11] | Loan was repaid in full on September 1, 2015. | |||
[12] | Loan was repaid in full on October 12, 2015. | |||
[13] | Unsecured loan. | |||
[14] | 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 Instr35
Fair Value of Financial Instruments (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Mar. 02, 2015 | |
Fair Value of Financial Instruments (Details) [Line Items] | |||||||
Long-term Debt | $ 964,200,000 | $ 964,200,000 | $ 709,600,000 | ||||
Long-term Debt, Fair Value | 968,800,000 | $ 968,800,000 | 718,900,000 | ||||
Derivative, Description of Terms | Company pays a fixed rate of interest and receives a floating rate of interest equal to the one month LIBOR | ||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (5,978,000) | $ 757,000 | $ (6,437,000) | $ 311,000 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (6,163,000) | (6,163,000) | (511,000) | ||||
Repayments of Debt | $ 89,547,000 | 57,289,000 | |||||
From Inception through March 2, 2015 Designated as a Cash Flow Hedge and from March 3, 2015 through Termination Date No Longer Designated as a Cash Flow Hedge [Member] | Repayment of $100 Million Unsecured Term Loan and Termination of Interest Rate Swap May 2015 [Member] | |||||||
Fair Value of Financial Instruments (Details) [Line Items] | |||||||
Derivative, Description of Terms | Company paid a fixed interest rate of 1.58% and received a floating rate of interest equal to the one month LIBOR | ||||||
Payment of Interest Rate Swap Termination Fees | $ 1,100,000 | ||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | $ (300,000) | $ (500,000) | |||||
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion | 800,000 | $ 0 | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (800,000) | ||||||
Derivative Inception Date | March 6, 2014 | ||||||
Derivative, Notional Amount | 100,000,000 | 100,000,000 | $ 100,000,000 | ||||
Repayments of Debt | 100,000,000 | ||||||
Realized Gain (Loss) on Derivative | (1,100,000) | ||||||
Interest Rate Swap Agreement Assumed March 1, 2014 [Member] | Apple Seven and Apple Eight Mergers [Member] | Not Designated as Hedging Instrument [Member] | |||||||
Fair Value of Financial Instruments (Details) [Line Items] | |||||||
Payment of Interest Rate Swap Termination Fees | $ 50,000 | ||||||
Unsecured $212.5 Million Term Loan Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | |||||||
Fair Value of Financial Instruments (Details) [Line Items] | |||||||
Derivative, Description of Terms | receives a floating rate of interest equal to the one month LIBOR | ||||||
Derivative Inception Date | May 2,015 | ||||||
Derivative, Notional Amount | $ 212,500,000 | $ 212,500,000 | |||||
Derivative, Fixed Interest Rate | 1.58% | 1.58% | |||||
Unsecured $110.0 Million Term Loan Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | |||||||
Fair Value of Financial Instruments (Details) [Line Items] | |||||||
Derivative, Description of Terms | receives a floating rate of interest equal to the one month LIBOR | ||||||
Derivative Inception Date | July 2,015 | ||||||
Derivative, Notional Amount | $ 110,000,000 | $ 110,000,000 | |||||
Derivative, Fixed Interest Rate | 1.62% | 1.62% | |||||
Unsecured $425 Million Term Loan Facility [Member] | $965 Million Unsecured Credit Facility [Member] | |||||||
Fair Value of Financial Instruments (Details) [Line Items] | |||||||
Line of Credit Facility, Interest Rate at Period End | 2.76% | 2.76% | |||||
Unsecured $425 Million Term Loan Facility [Member] | Loans With Interest Rates Effectively Fixed By Interest Rate Swaps [Member] | $965 Million Unsecured Credit Facility [Member] | Unsecured $212.5 Million Term Loan Funded May 18, 2015 [Member] | |||||||
Fair Value of Financial Instruments (Details) [Line Items] | |||||||
Line of Credit Facility, Interest Rate at Period End | 3.08% | 3.08% | |||||
Unsecured $425 Million Term Loan Facility [Member] | Loans With Interest Rates Effectively Fixed By Interest Rate Swaps [Member] | $965 Million Unsecured Credit Facility [Member] | Unsecured $110.0 Million Term Loan Funded July 1, 2015 [Member] | |||||||
Fair Value of Financial Instruments (Details) [Line Items] | |||||||
Line of Credit Facility, Interest Rate at Period End | 3.12% | 3.12% |
Fair Value of Financial Instr36
Fair Value of Financial Instruments (Details) - Schedule of Interest Rate Swap Agreements - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2014 | ||
Fair Value of Financial Instruments (Details) - Schedule of Interest Rate Swap Agreements [Line Items] | |||
Fair value | $ (6,448) | $ (779) | |
Not Designated as Hedging Instrument [Member] | Interest Rate Swap #1 [Member] | |||
Fair Value of Financial Instruments (Details) - Schedule of Interest Rate Swap Agreements [Line Items] | |||
Notional amount | [1] | $ 0 | |
Assumption or Origination Date | Mar. 1, 2014 | ||
Maturity date | Oct. 1, 2015 | ||
Fair value | $ 0 | (74) | |
Not Designated as Hedging Instrument [Member] | Interest Rate Swap #2 [Member] | |||
Fair Value of Financial Instruments (Details) - Schedule of Interest Rate Swap Agreements [Line Items] | |||
Notional amount | [2] | $ 0 | |
Assumption or Origination Date | Mar. 1, 2014 | ||
Maturity date | Jan. 13, 2015 | ||
Fair value | $ 0 | (11) | |
Not Designated as Hedging Instrument [Member] | Interest Rate Swap #3 [Member] | |||
Fair Value of Financial Instruments (Details) - Schedule of Interest Rate Swap Agreements [Line Items] | |||
Notional amount | [3] | $ 37,920 | |
Assumption or Origination Date | Mar. 1, 2014 | ||
Maturity date | Jan. 13, 2017 | ||
Fair value | $ (285) | (183) | |
Not Designated as Hedging Instrument [Member] | Interest Rate Swap #4 [Member] | |||
Fair Value of Financial Instruments (Details) - Schedule of Interest Rate Swap Agreements [Line Items] | |||
Notional amount | [4] | $ 0 | |
Assumption or Origination Date | Mar. 6, 2014 | ||
Maturity date | Mar. 1, 2019 | ||
Fair value | $ 0 | (511) | |
Designated as Hedging Instrument [Member] | Interest Rate Swap #5 [Member] | |||
Fair Value of Financial Instruments (Details) - Schedule of Interest Rate Swap Agreements [Line Items] | |||
Notional amount | $ 212,500 | ||
Assumption or Origination Date | May 21, 2015 | ||
Maturity date | May 18, 2020 | ||
Fair value | $ (3,930) | 0 | |
Designated as Hedging Instrument [Member] | Interest Rate Swap #6 [Member] | |||
Fair Value of Financial Instruments (Details) - Schedule of Interest Rate Swap Agreements [Line Items] | |||
Notional amount | $ 110,000 | ||
Assumption or Origination Date | Jul. 2, 2015 | ||
Maturity date | May 18, 2020 | ||
Fair value | $ (2,233) | $ 0 | |
[1] | 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 $0.05 million to satisfy the outstanding liability at the time of termination. | ||
[2] | Swap matured during the first quarter of 2015. | ||
[3] | Effective date of the forward interest rate swap agreement was January 13, 2015, the same date the previous swap agreement matured. | ||
[4] | Designated as a cash flow hedge through March 2, 2015 and was fully effective during this period. From March 3, 2015 and thereafter, due to a potential change in the underlying hedged debt instrument, the swap was no longer designated as a cash flow hedge. The swap was terminated on May 18, 2015. |
Related Parties (Details)
Related Parties (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 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 Air Holding, LLC [Member] | |||
Related Parties (Details) [Line Items] | |||
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 74.00% | ||
Subcontract Agreement between Apple Hospitality and Apple Ten Advisors, Inc. Effective March 1, 2014 [Member] | Apple Ten [Member] | |||
Related Parties (Details) [Line Items] | |||
Management Advisory Fee Received From Related Party, Percent | 0.1% to 0.25% | ||
Subcontract Agreement between Apple Hospitality and Apple Ten Advisors, Inc. Effective March 1, 2014 [Member] | Apple Ten [Member] | Advisory Fees Earned by Apple Hospitality [Member] | |||
Related Parties (Details) [Line Items] | |||
Related Party Transaction, Amounts of Transaction | $ (1.9) | $ (0.8) | |
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 | $ (2.1) | $ (1.8) | |
Apple Ten's Minority Interest [Member] | Apple Air Holding, LLC [Member] | |||
Related Parties (Details) [Line Items] | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 26.00% | ||
Other Noncontrolling Interests | $ 0.8 | $ 1 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2015USD ($)$ / sharesshares | Mar. 01, 2014$ / shares | Sep. 30, 2015USD ($)$ / sharesshares | Sep. 30, 2014USD ($)$ / shares | Sep. 30, 2015USD ($)$ / sharesshares | Aug. 31, 2014$ / shares | Sep. 30, 2015USD ($)$ / sharesshares | May. 31, 2015$ / shares | Sep. 30, 2014USD ($)$ / shares | Dec. 31, 2014shares | May. 18, 2015shares | |
Shareholders' Equity (Details) [Line Items] | |||||||||||
Reverse Stock Split Ratio of Common Stock | 0.50 | ||||||||||
Common Stock, Shares, Outstanding (in Shares) | shares | 174,404,915 | 174,404,915 | 174,404,915 | 174,404,915 | 186,910,407 | ||||||
Common Stock, Shares, Issued (in Shares) | shares | 174,404,915 | 174,404,915 | 174,404,915 | 174,404,915 | 186,910,407 | ||||||
Payments of Ordinary Dividends, Common Stock (in Dollars) | $ 176,814 | $ 169,862 | |||||||||
Dividends Payable (in Dollars) | $ 17,440 | $ 17,440 | $ 0 | $ 17,440 | 17,440 | $ 0 | |||||
Tender Offer [Member] | |||||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||||
Stock Repurchase Program, Authorized Amount (in Dollars) | 200,000 | 200,000 | 200,000 | $ 200,000 | |||||||
Stock Repurchase Program Commencement Date | May 18, 2015 | ||||||||||
Stock Repurchase Program Expiration Date | Jun. 22, 2015 | ||||||||||
Stock Repurchased and Retired During Period, Shares (in Shares) | shares | 10,500,000 | ||||||||||
Stock Repurchased During Period, Price Per Share | $ / shares | $ 19 | ||||||||||
Stock Repurchased and Retired During Period, Value (in Dollars) | $ 200,000 | ||||||||||
Percent of Common Shares Properly Tendered | 97.00% | ||||||||||
Stock Repurchase, Costs Incurred (in Dollars) | $ 600 | ||||||||||
July 2015 Share Repurchase Program [Member] | |||||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||||
Stock Repurchase Program, Authorized Amount (in Dollars) | $ 500,000 | $ 500,000 | 500,000 | $ 500,000 | |||||||
Stock Repurchased and Retired During Period, Shares (in Shares) | shares | 1,200,000 | ||||||||||
Stock Repurchased and Retired During Period, Value (in Dollars) | $ 21,200 | ||||||||||
Stock Repurchased During Period, Weighted Average Market Purchase Price Per Share | $ / shares | $ 17.59 | ||||||||||
Distributions [Member] | |||||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ / shares | $ 0.30 | $ 0.33 | $ 0.97 | $ 1.05 | |||||||
Payments of Ordinary Dividends, Common Stock (in Dollars) | $ 52,600 | $ 62,300 | $ 176,800 | $ 169,900 | |||||||
Common Stock, Dividends, Per Share, Declared | $ / shares | $ 0.10 | ||||||||||
Dividends Payable, Date of Record | Sep. 30, 2015 | ||||||||||
Dividends Payable (in Dollars) | $ 17,400 | $ 17,400 | $ 17,400 | $ 17,400 | |||||||
Annual Distribution [Member] | |||||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||||
Annual Distribution rate | $ / shares | $ 1.6605 | $ 1.20 | $ 1.32 | $ 1.36 | |||||||
Terminated Share Redemption Program [Member] | |||||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||||
Stock Repurchased and Retired During Period, Shares (in Shares) | shares | 800,000 | 0 | |||||||||
Stock Repurchased During Period, Price Per Share | $ / shares | $ 18.40 | ||||||||||
Stock Repurchased and Retired During Period, Value (in Dollars) | $ 14,900 | ||||||||||
Share Redemption Program, Termination Date | April 2,015 | ||||||||||
Common Shares Prior to Reverse Share Split [Member] | |||||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||||
Common Stock, Shares, Outstanding (in Shares) | shares | 372,200,000 | ||||||||||
Common Stock, Shares, Issued (in Shares) | shares | 372,200,000 | ||||||||||
Common Shares After Reverse Share Split [Member] | |||||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||||
Common Stock, Shares, Outstanding (in Shares) | shares | 186,100,000 | ||||||||||
Common Stock, Shares, Issued (in Shares) | shares | 186,100,000 |
Compensation Plans (Details)
Compensation Plans (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
2015 Executive Incentive Plan [Member] | ||||
Compensation Plans (Details) [Line Items] | ||||
Labor and Related Expense | $ 2,600,000 | $ 5,800,000 | ||
Accrued Bonuses, Current | $ 5,800,000 | $ 5,800,000 | ||
Portion of Awards Paid in Cash | one-third | |||
Portion of Awards Issued in Equity | two-thirds | |||
2014 Executive Incentive Plan [Member] | ||||
Compensation Plans (Details) [Line Items] | ||||
Labor and Related Expense | $ 2,200,000 | $ 5,100,000 | ||
Restricted Stock Awards Vested at End of 2015 [Member] | 2015 Executive Incentive Plan [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] | 2015 Executive Incentive Plan [Member] | ||||
Compensation Plans (Details) [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | |||
Minimum Potential Aggregate Payout [Member] | 2015 Executive Incentive Plan [Member] | ||||
Compensation Plans (Details) [Line Items] | ||||
Labor and Related Expense | $ 0 | |||
Maximum Potential Aggregate Payout [Member] | 2015 Executive Incentive Plan [Member] | ||||
Compensation Plans (Details) [Line Items] | ||||
Labor and Related Expense | $ 13,000,000 |
Property Taxes, Insurance and40
Property Taxes, Insurance and Other Expense (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2015USD ($) | |
Deepwater Horizon Economic and Property Damages Settlement Program Related to 2010 Gulf of Mexico Oil Spill [Member] | |
Property Taxes, Insurance and Other Expense (Details) [Line Items] | |
Proceeds from Legal Settlements | $ 1.8 |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, $ in Thousands | Oct. 16, 2015USD ($) | Oct. 31, 2015USD ($)$ / sharesshares | Sep. 30, 2015USD ($)$ / sharesshares | Sep. 30, 2014USD ($) |
Subsequent Events (Details) [Line Items] | ||||
Payments of Ordinary Dividends, Common Stock | $ 176,814 | $ 169,862 | ||
Aggregate Number of Hotel Rooms | 22,782 | |||
July 2015 Share Repurchase Program [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Stock Repurchased and Retired During Period, Shares (in Shares) | shares | 1,200,000 | |||
Stock Repurchased During Period, Weighted Average Market Purchase Price Per Share (in Dollars per share) | $ / shares | $ 17.59 | |||
Stock Repurchased and Retired During Period, Value | $ 21,200 | |||
Subsequent Event [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Payments of Ordinary Dividends, Common Stock | $ 17,400 | |||
Common Stock, Dividends, Per Share, Cash Paid (in Dollars per share) | $ / shares | $ 0.10 | |||
Dividends Payable, Date Declared | Oct. 20, 2015 | |||
Common Stock, Dividends, Per Share, Declared (in Dollars per share) | $ / shares | $ 0.10 | |||
Dividends Payable, Date to be Paid | Nov. 16, 2015 | |||
Dividends Payable, Date of Record | Oct. 30, 2015 | |||
Subsequent Event [Member] | July 2015 Share Repurchase Program [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Stock Repurchased and Retired During Period, Shares (in Shares) | shares | 42,000 | |||
Stock Repurchased During Period, Weighted Average Market Purchase Price Per Share (in Dollars per share) | $ / shares | $ 18.39 | |||
Stock Repurchased and Retired During Period, Value | $ 800 | |||
Courtyard Syracuse, NY [Member] | Subsequent Event [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Aggregate Number of Hotel Rooms | 102 | |||
Residence Inn Syracuse, NY [Member] | Subsequent Event [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Aggregate Number of Hotel Rooms | 78 | |||
Courtyard and Residence Inn Syracuse, NY [Member] | Subsequent Event [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Number of Hotel Properties Used to Secure Debt | 2 | |||
Business Acquisition, Gross Purchase Price | $ 42,000 | |||
Noncash or Part Noncash Acquisition, Debt Assumed | $ 22,400 |